/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/150924.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 24, 2015, Vol. 19, No. 267 Headlines 33 PECK SLIP: Court Authorizes Interim $745K Cash Collateral Use AMBER HOTEL: Little Fails in Appeal from Order Dismissing Suit AP-LONG BEACH: 2nd Amended Plan Declared Effective July 17 ASHLAND INC: Moody's Affirms Ba1 CFR After Spin Off Announcement ASHLAND INC: S&P Affirms 'BB' CCR & Revises Outlook to Negative AURORA DIAGNOSTICS: Signs 4th Amendment to Loan Pact with Cerberus AZUSA CITY: Moody's Affirms Ba2 Rating on 2003 Refunding COPs BALMORAL RACING: Horse Races Face Cancellation BATTLE CREEK: Creditor Seeks Dismissal of Ch. 11 Case BEAR ISLAND: First Amended Plan Declared Effective July 28 BERNARD L. MADOFF: Aurelia Finance Directors Settle Criminal Claims BIRMINGHAM COAL: Files Clawback Suit Against Computershare BIRMINGHAM COAL: Needs Until Dec. 23 to Remove Actions BULLION DIRECT: Committee Taps Dykema Cox as Attorney BULLIONDIRECT INC: Amends Schedules of Assets and Liabilities CAESARS ENTERTAINMENT: Second Lien Bond RSA Expires CAL DIVE: Gets Green Light to Sell Vessel to Uncle John Holding CASA EN DENVER: Oct. 15 Hearing on Bid to Use Cash Collateral CERTENEJAS INCORPORADO: Case Summary & 7 Top Unsecured Creditors CHINA CERAMICS: Receives Nasdaq Listing Non-Compliance Notice CONGREGATION BIRCHOS: Hires Carlebach as Legal Counsel CORPORATE RESOURCE: Consents to Case Trustee Appointment COTY INC: Moody's Assigns Ba1 Corp. Family Rating, Outlook Stable CPI HOLDINGS: Moody's Affirms 'B1' CFR, Outlook Positive CREATIVE ARTISTS: Moody's Retains B2 CFR Over $75MM Add-On CRP-2 HOLDINGS: Amends Schedule of Unsecured Nonpriority Claims CRP-2 HOLDINGS: US Trustee Amends Members of Unsec. Committee CURTIS JAMES JACKSON: Sues Former Consultant Over TV Deals DASEKE INC: S&P Withdraws 'B+' Corporate Credit Rating DVORKIN HOLDINGS: FirstMerit Wants Stay of Payouts Further Extended EAGLE INC: Case Summary & 20 Largest Unsecured Creditors EAGLE INC: Files for Bankruptcy Amid Asbestos-Related Lawsuits ELITE PRECISION: General Dynamics Wants Fraud Suits Consolidated FIELDWOOD ENERGY: Moody's Lowers CFR to B2, Outlook Negative FLINTKOTE COMPANY: Time to Remove Suits Extended to Oct. 31 FOREST PARK MEDICAL: Case Summary & 20 Largest Unsecured Creditors FOREST PARK MEDICAL: Files for Chapter 11 Due to Declining Revenues FREDERICK'S OF HOLLYWOOD: Has Until Dec. 15 to File Ch. 11 Plan FULLBEAUTY BRANDS: S&P Lowers CCR to 'B-', Outlook Stable GARLOCK SEALING: Belluck & Fox Must Face Subpoenas GELTECH SOLUTIONS: Reports $5.51 Million Net Loss for Fiscal 2015 GENERAL MOTORS: Ignition Switch Plaintiffs Defend Damages Claims GENERAL SHOPPING: Moody's Lowers Sr. Unsecured Debt Rating to 'B2' GLOBAL MARITIME: Wants to Pay $250,000 to Critical Vendors HARVEST PARK COMMERCIAL: Voluntary Chapter 11 Case Summary HARVEST PARK HOMES: Voluntary Chapter 11 Case Summary HAVERHILL CHEMICALS: Approval of Bidding Procedures Sought HEALTH DIAGNOSTIC: Ettin Group Approved to Sell Misc. Equipment HEALTH DIAGNOSTIC: Protiviti Okayed as Panel's Financial Advisor HIGHLINE ACADEMY: S&P Lowers Rating on 2011 Charter Bonds to 'BB+' HILLCREST BANK: 8th Cir. Rejects Quintero Investors' Rehearing Bid HUMMEL STATION: S&P Assigns Prelim. 'BB-' Rating on $455MM Loan IAC/INTERACTIVECORP: Moody's May Lower Ba1 CFR Over POF Purchase INFINITY ENERGY: Amends 6.9 Million Shares Resale Prospectus INSURENET INSURANCE: Voluntary Chapter 11 Case Summary JB3 LLC: Voluntary Chapter 11 Case Summary JENNIFER L. FORTUNE DVM: Case Summary & 5 Top Unsecured Creditors KITTUSAMY LLP: Court Approves Kolesar & Leatham as Attorney KITTUSAMY LLP: Schwartz Flansburg Files Rule 2019 Statement L.B. STRINGFELLOW: Case Summary & 9 Largest Unsecured Creditors LEGENDS GAMING: Global Gaming Backs at Bad Faith Claim LEHMAN BROTHERS: Giddens Wants $260MM in Claims Reclassified LERIN HILLS: Court Confirms Liquidating Plan LERIN HILLS: Debtors Declare Exit Plan Effective Sept. 11 LERIN HILLS: MUD Directors' Bid for Stay Relief Denied LONGVIEW POWER: Court Issues Final Decree Closing Ch. 11 Case MDC HOLDINGS: Moody's Puts Ba1 CFR on Review for Downgrade NEW CENTAUR: S&P Affirms 'B' CCR Then Withdraws Rating NORTEL NETWORKS: Files Status Report on Sterling Mets Suit NORTEL NETWORKS: Says EMEA Unit Should Be Spared From IP Suit OMEGA HEALTHCARE: S&P Raises Corp. Credit Rating From 'BB+' ONE SOURCE: Secured Creditors Object to Reorganization Plan OPTIMUMBANK HOLDINGS: In Technical Default Under $5.15M Debenture ORBITZ WORLDWIDE: S&P Withdraws 'B+' CCR on Completed Acquisition OVERSEAS SHIPHOLDING: Moody's Confirms B2 CFR, Outlook Positive PATRIOT COAL: Blackhawk Wins Auction for Majority of Assets PILOT TRAVEL: Moody's Assigns Ba2 Rating on New $700MM Secured Loan PILOT TRAVEL: S&P Retains 'BB+' Rating on Revised Recovery Rating QUANTUM FOODS: Settles with Raging Bull on Failed Asset Sale QUIRKY INC: Asks Permission to Use Comerica Bank's Cash Collateral QUIRKY INC: Proposes Flextronics-Led Auction on Nov. 2 QUIRKY INC: Seeks Joint Administration of Cases RENAULT WINERY: Bank Makes $3.36-Million Credit Bid RLJ ENTERPRISES: Case Summary & 9 Largest Unsecured Creditors ROSETTA GENOMICS: Chief Medical Officer Quits SABLE OPERATING: Hires Gary Todd as Landman to Review Leases SABLE OPERATING: Hires Joyce Lindauer as Counsel SABLE OPERATING: Hires Ronald Sentz as Engineer SAINT MICHAEL'S: Court Approves Nov. 5 Auction of Assets SAINT MICHAEL'S: Final DIP Hearing Adjourned to Oct. 2 SAINT MICHAEL'S: U.S. Trustee Names S. Goodman as PCO SB PARTNERS: Closes Sale of Lino Lakes Property for $16 Million SCS HOLDINGS: S&P Revises Outlook to Negative & Affirms 'B+' CCR SIRIUS COMPUTER: Moody's Assigns B1 CFR & Rates Sec. Loans Ba3 SPENDSMART NETWORKS: Isaac Blech Reports 11.9% Stake as of Sept. 21 STANDARD REGISTER: Court Approves WilliamsMarston to Provide CRO TRANS COASTAL: Seeks to Use US Bank Cash Collateral VIGGLE INC: Widens Net Loss to $78.9 Million in Fiscal 2015 VILLAGE COURT: Voluntary Chapter 11 Case Summary VISCOUNT SYSTEMS: Principal Accounting Officer Resigns WHITTEN FOUNDATION: IberiaBank Proposes Sale-Based Plan XZERES CORP: Paul DeBruce Reports 26.5% Stake as of Aug. 28 YARWAY CORP: Sets Oct. 19 Deadline for Filing Admin Expense Claims [*] 10 Lateral Attorneys Join SmithAmundsen's Indianapolis Office [*] American Sectors Face Significant Exposure to China Slowdown [*] Fitch: US Energy Debt Exchanges Provide Little Interest Relief [*] Former Greenberg Traurig Lawyer Loesberg Joins Kelley Drye [^] Recent Small-Dollar & Individual Chapter 11 Filings ********* 33 PECK SLIP: Court Authorizes Interim $745K Cash Collateral Use ---------------------------------------------------------------- Judge James L. Garrity, Jr., of the U.S. Bankruptcy Court for the Southern District of New York authorized debtor 33 Peck Slip Acquisition LLC to use cash collateral on an interim basis, to pay expenses totaling $745,874. Judge Garrity likewise authorized the Debtors to grant adequate protection, including monthly payments, to lender 33 Peck Slip Hotel Capital LLC. The interim use of the cash collateral is authorized only for the period from the Petition Date through and including the date on which a final order is entered. The Debtor says it has an immediate need to use the cash to, among other things, preserve and maximize the value of the its assets, absent which immediate and irreparable harm will result to the Debtor, its estate, and its creditors. The preservation and maintenance of the Debtor's assets and business is necessary to maximize values available for distribution to stakeholders. Absent the Debtor's ability to use cash collateral, the Debtor would not have sufficient available sources of working capital or financing and would be unable to pay its operating expenses or maintain its assets, to the detriment of the Debtor’s estate and creditors. Judge Garrity authorized the Debtor to provide, and likewise granted the Lender, adequate protection as follows: (i) continued monthly payments of fixed interest at the non-default rate set forth in the Lender's Loan Documents, (ii) continued use, maintenance and insurance of the Lender’s Collateral in accordance with the Lender's Loan Documents, (iii) to the extent of the use of any of the Lender’s cash collateral, the Lender is granted replacement security interests and liens on any postpetition property of the Estate that have the same scope, priority, validity and enforceability as the Lender’s prepetition security interests and liens had with respect to the cash collateral that is used by the Debtor but without requiring any additional filing or recordation of statements or documents, (iv) the Lender will have a superpriority administrative expense claim under section 507(b) of the Bankruptcy Code to the extent of any diminution of the Lender's cash collateral from the Petition Date, and (v) the Debtor will provide the Lender with copies of all pleadings, papers and reports filed with the Bankruptcy Court or submitted to the United States Trustee and any other non-privileged information reasonably requested by the Lender. The final hearing on the Debtor's motion is scheduled on Oct. 7, 2015 at 2:00 p.m. The deadline for the filing of any response to the Debtor's motion is Sept. 30, 2015 at 4:00 p.m. The Debtors' attorneys can be reached at: David B. Shemano, Esq. ROBINS KAPLAN LLP 601 Lexington Avenue Suite 3400 New York, NY 10022-4611 Telephone: (212)980-7400 Facsimile: (212)980-7499 E-mail: Dshemano@RobinsKaplan.com - and - Howard J. Weg, Esq. Scott F. Gautier, Esq. ROBINS KAPLAN LLP 2049 Century Park East Suite 3400 Los Angeles, CA 90067-3208 Telephone: (310)552-0130 Facsimile: (310)229-5800 E-mail: Hweg@RobinsKaplan.com Sgautier@RobinsKaplan.com About 33 Peck Slip Acquisition Owners of four New York City hotel properties, namely 33 Peck Slip Acquisition LLC, Gemini 37 West 24th Street MT, LLC, 36 West 38th Street LLC and 52 West 13th P, LLC, have sought Chapter 11 bankruptcy protection, intending to auction off their assets in connection with a Chapter 11 plan. The Debtors own: * the Best Western Seaport Hotel, at 33 Peck Slip in the South Street Seaport Historic District on the Lower Manhattan waterfront in New York City, New York; * the Wyndham Flatiron Hotel, at 37 West 24th Street in the Flatiron district of New York City, New York; * the Jade Greenwich Village Hotel at 52 West 13th Street in Greenwich Village in Lower Manhattan in New York City, New York; and * the Bryant Park Development Site, a development lot that is approved for development as a 114-room boutique hotel at 34-36 West 38th Street in the Bryant Park district of New York City, New York. 33 Peck Slip Acquisition LLC, et al., sought Chapter 11 bankruptcy petition (Bankr. S.D.N.Y. Case Nos. 15-12479 to 15-12482) on Sept. 3, 2015. The Debtors reported total assets of $205.8 million and total liabilities of $135.6 million. The Debtors have hired Robins Kaplan LLP as their counsel and Robert Douglas as their real estate advisor to assist with the sales. AMBER HOTEL: Little Fails in Appeal from Order Dismissing Suit -------------------------------------------------------------- Judge Fernando M. Olguin of the United States District Court for the Central District of California dismissed James J. Little's appeal from the bankruptcy court's order dated October 20, 2014, dismissing his complaint seeking to revoke confirmation of Amber Hotel Corporation's plan of reorganization. Amber filed for Chapter 11 bankruptcy on March 17, 2013. On October 28, 2013, Amber filed its amended plan of reorganization. That plan was confirmed pursuant to an order of the bankruptcy court entered on December 26, 2013. Little did not seek a stay of that confirmation. On June 24, 2014, Little filed a complaint seeking to revoke the confirmation on the ground that it was procured by fraud pursuant to Section 1144 of the Bankruptcy Code. On September 17, 2014, Amber moved to dismiss the Adversary Complaint on two grounds relevant here: (1) the Adversary Complaint is time barred; and (2) the Adversary Complaint is equitably moot. On October 20, 2014, the bankruptcy court entered its Findings, which concluded that the Adversary Complaint is time barred and is also equitably moot. In conjunction with its Findings, the bankruptcy court entered its Order Granting Reorganized Debtor's Motion to Dismiss Complaint. Little timely filed an appeal from that order. Judge Olguin held that the bankruptcy court did not err finding that Little's Adversary Complaint was untimely. He asserted that Little had failed to meet his "exceptionally heavy" burden of demonstrating that "before" means "within" given the plain language of Section 1144, which states that "at any time before 180 days after the date of the entry of the order of confirmation," a creditor may file an adversary complaint to revoke a chapter 11 plan of confirmation "procured by fraud." Judge Olguin ruled that the court is not inclined to interpret "before 180 days" to mean a "180-day period" on the basis of case law that makes only casual reference to "180 days" in Section 1144, particularly when none of that case law considers whether filing an adversary complaint on the 180th day, rather than the 179th day, is untimely. Judge Olguin further held that Little did not seek a stay of the Chapter 11 confirmation plan and that is fatal to his contention that the Adversary Complaint is not equitably moot. The case is JAMES J. LITTLE, Appellant, v. AMBER HOTEL CORPORATION, Appellee, CASE NO. CV 14-9254 FMO (C.D. Calif.), relating to IN RE AMBER HOTEL CORPORATION, Reorganized Debtor. A full-text copy of Judge Olguin's Order Re: Bankruptcy Appeal dated August 31, 2015 is available at http://is.gd/cjbiiufrom Leagle.com. Amber Hotel Corporation is represented by: David L. Oberg, Esq. LAW OFFICES OF DAVID LAWRENCE OBERG APC 23679 Calabasas Rd, Ste 541 Calabasas, CA 91302 James J. Little is represented by: Philip H. Stillman, Esq. STILLMAN & ASSOCIATES 51 Mill Street, Ste 11 Hanover, MA 02339 Telephone: (781)829-1077 Email: dhs@stillmanlegal.com Agoura Hills, California-based Amber Hotel Corporation sought protection under Chapter 11 of the Bankruptcy Code on March 17, 2013 (Bankr. C.D. Calif., Case No. 13-11804). The case is assigned to Judge Alan M. Ahart. The Debtor's counsel is David L. Oberg, Esq., at Law Offices of David Lawrence Oberg, APC, in Calabasas, California. AP-LONG BEACH: 2nd Amended Plan Declared Effective July 17 ---------------------------------------------------------- AP-Long Beach Airport LLC informed the Hon. Vincent P. Zurzolo of the U.S. Bankruptcy Court for the Central District of California that its second amended Chapter 11 plan of reorganization became effective as of July 17, 2015. Judge Zurzolo confirmed the Debtor's amended Chapter 11 plan on July 2, 2015. As reported in the Troubled Company Reporter on April 29, 2015, holders of general unsecured claims can expect payment on the effective date of the Plan, which is estimated to be no later than July 15, 2015, and in the amount of 100% of their allowed claims plus interest at the federal judgment rate as of the Effective Date. Abbey-Properties II LLC's interests in the Debtor will be transferred to a new company, LB Hangar 3205 LLC. APII will be the sole member of LB Hangar and thus will remain the ultimate owner of 100% of the Debtor. A clean copy of the Second Amended Disclosure Statement and Plan is available for free at: http://bankrupt.com/misc/AP_Long_Beach_2nd_Am_DS.pdf A red-line copy of the Second Amended Disclosure Statement is available for free at: http://bankrupt.com/misc/AP_Long_Beach_2nd_Am_DS_RL.pdf About AP-Long Beach AP-Long Beach Airport LLC is a property-level subsidiary of The Abbey Companies LLC. The Abbey Companies and its more than 60 separate subsidiaries were founded by Donald G. Abbey. AP-Long Beach Airport LLC is a single asset real estate that owns a 206,945-square foot building at Long Beach Airport, in Long Beach California, that originally was an airplane hangar. The building is owned and operated by the company on land owned by, and leased from, the City of Long Beach. AP-Long Beach Airport LLC sought protection under Chapter 11 of the Bankruptcy Code (Bankr. C.D. Cal. Case No. 14-33372) on Dec. 19, 2014. The case is assigned to Judge Vincent P. Zurzolo. The Debtor's counsel is Alan J Friedman, Esq., and Kerri A Lyman, Esq., at Irell & Manella LLP. The Debtor disclosed $44.6 million in assets and $34.8 million in liabilities as of the Chapter 11 filing. ASHLAND INC: Moody's Affirms Ba1 CFR After Spin Off Announcement ---------------------------------------------------------------- Moody's Investors Service said it affirmed the Ba1 corporate family ratings of Ashland Inc. following the company's announcement that its board of directors, following a comprehensive strategic review, has approved proceeding with a plan to separate the Valvoline lubricant business into an independent publicly traded company in a tax free spin-off to shareholders. The separation is likely to commence some time in fiscal year 2017, as the company works to finalize the transaction structure and obtain customary regulatory and other approvals. The transaction is subject to final board approval. The outlook for the rating is stable. Affirmations: Issuer: Ashland Inc. Corporate Family Rating, Affirmed Ba1 Probability of Default Rating, Affirmed Ba1-PD Speculative Grade Liquidity Rating, Affirmed SGL-1 Senior Unsecured Bank Credit Facility (Local Currency), Affirmed Ba1, LGD4 Senior Unsecured Regular Bond/Debenture (Local Currency), Affirmed Ba1, LGD4 Senior Unsecured Medium-Term Note Program (Local Currency), Affirmed (P)Ba1 Outlook Actions: Issuer: Ashland Inc. Outlook, Remains Stable Issuer: Hercules Incorporated Backed Junior Subordinated Regular Bond/Debenture (Local Currency), Affirmed Ba2, LGD6 Backed Senior Secured Regular Bond/Debenture (Local Currency), Affirmed Ba1, LGD4 Outlook Actions: Issuer: Hercules Incorporated Outlook, Remains Stable RATINGS RATIONALE Moody's acknowledges the strategic and valuation rationale in separating a branded lubricant product and franchise company from a specialty chemical company, as independence will facilitate capital allocation, portfolio strategies and capital structure decisions tailored and appropriate for each company. However, the separation will result in a smaller, less diversified New Ashland, while removing from the portfolio what was a strong and stable earnings contributor with an above par return on asset profile. These changes to the credit profile are meaningful, Moody's noted. As an offset to the negative portfolio impact, Moody's expects that the New Ashland will adhere to a more conservative financial policy including lower debt and leverage on a post-spin basis, and targeting gross balance sheet leverage at or below 3.0x range over time (or low 3.0x on a Moody's adjusted basis, vs. roughly 4.0x currently). Transfer of the U.S. pension liabilities to Valvoline significantly reduces Moody's adjustments to Ashland's debt and is a significant factor in reducing adjusted leverage on a post spin-basis. Indeed, affirmation of the Ba1 ratings incorporates this more conservative use of balance sheet leverage, notwithstanding occasional, but modest, deviation from this target due to opportunistic M&A activity that might occur. Moreover, the move to a specialty company focus with a stronger balance sheet should allow for further portfolio strengthening moves, Moody's added. Currently, Ashland's Ba1 Corporate Family Rating (CFR) is supported by a portfolio of specialty chemical businesses serving diverse end markets in the U.S. and internationally, a large revenue base with LTM revenues through June 30, 2015 of $5.6 billion, meaningful market shares in key businesses (e.g., #1 globally in Specialty Ingredients and non-aerospace composites and #2 in the U.S. franchised quick lube chain), and good geographic and operational diversity. The rating is also supported by strong and improving EBITDA margins, particularly in Specialty Ingredients and in Valvoline. On a post-spin basis, assuming Valvoline is fully separated from the portfolio, the New Ashland will have pro forma revenues of roughly $3.6 billion, with two segments, including Ashland Specialty Ingredients (ASI), the larger of the two segments with revenues of roughly $2.4 billion and a mid 20% range EBITDA margin, and Ashland Performance Materials (APM), with an EBITDA margin in the low double-digit percent range. Moody's expects the New Ashland will continue to enjoy strong margins at ASI and improving margins and business position at APM, while maintaining a strong balance sheet and generating positive free cash flow for debt reduction and dividends, as well as share buybacks or modest M&A activity. The New Ashland will continue to serve a diversified mix of consumer and industrial end markets including pharmaceuticals, personal care, food and beverage, adhesives, architectural coatings, automotive, construction, and energy. Ashland's SGL-1 Speculative Grade Liquidity rating reflects its very good liquidity position, which is supported by $1.11 billion in cash balances at June 30, 2015, its $1.2 billion senior unsecured revolving credit facility, which has recently been extended to 2020 (availability of $1.13 billion as of June 30, 2015), and expectations for positive free cash flow generation. On a pre-spin basis, the stable rating outlook anticipates an improving trend in leverage to levels more supportive of the Ba1 ratings, while some tangible improvement is important ahead of a meaningful decline in cash balances. Moody's would expect to see gross leverage in the mid 3x range to be more supportive of the Ba1 ratings (on a pre-Valvoline-spin basis). The ratings could be downgraded if Ashland does not meaningfully improve its profitability and EBITDA such that leverage exhibits a declining trend to levels more supportive of the Ba1 CFR, and before using most or all its excess cash balances for share repurchases. There is limited upward pressure on the ratings at this time. However, Moody's could consider an upgrade if management were to institute a targeted leverage in the low to mid 2x range and commences a meaningful debt reduction plan. The principal methodology used in these ratings was Global Chemical Industry Rating Methodology published in December 2013. Ashland Inc., headquartered in Covington, Kentucky, is focused on growing its specialty chemicals businesses globally. Ashland Specialty Ingredients and Ashland Performance Materials from its core specialty chemicals businesses and through its Valvoline brand, it is also a marketer of premium-branded automotive and commercial lubricants. Ashland had revenues from continuing operations of $5.6 billion for the twelve months ended June 30, 2015. ASHLAND INC: S&P Affirms 'BB' CCR & Revises Outlook to Negative --------------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'BB' corporate credit rating on Ashland Inc. and revised the rating outlook to negative from stable. At the same time, S&P affirmed all of its debt ratings on the company. "The outlook revision follows Ashland's announcement that it intends to spin-off its Valvoline business into a separate public company," said Standard & Poor's credit analyst Daniel Krauss. "We believe that the Valvoline business provided Ashland with a fair degree of diversity, scale, and solid profitability," he added. "The spin-off of this sizable business could lead us to re-assess Ashland's business risk profile at a level lower than "satisfactory." As a result, we believe there is at least a one-in-three chance for a downgrade over the next 12 months or so. We expect Ashland to maintain a financial risk profile in line with our "aggressive" assessment. We consider Ashland's liquidity to be "adequate," and expect cash sources to comfortably exceed cash uses by more than 1.2x over the next one to two years. We expect the company will continue to maintain sufficient cushion under its maximum leverage and minimum interest coverage covenants," S&P said. "The negative rating outlook on Ashland Inc. reflects our view that the spin-off of the Valvoline business could lead us to re-assess the company's business risk profile at a level lower than "satisfactory." We believe that management will remain committed to maintaining financial policies that support an improving financial risk profile. Specifically, we expect that management will meaningfully reduce debt in an effort to maintain credit measures at, or slightly above, current levels. Given the company's current satisfactory business risk profile, we consider a pro forma FFO to debt ratio of between 15% and 20% as appropriate for the current rating. We could lower the ratings if we believe that a weakening in our assessment of the company's business risk profile is unlikely to be offset with an improvement in its financial risk profile assessment. Specifically, if the business risk profile is re-assessed at a lower level, we could lower the ratings if we consider it unlikely that the pro forma FFO to debt ratio would improve to about 20% on a weighted-average basis. We could also consider a modest downgrade if, contrary to our expectations, the company does not meaningfully reduce debt," S&P noted. S&P could revise the outlook to stable if it believes that, despite the loss of diversity and profitability from the Valvoline spin-off, the company's business risk profile will remain what S&P considers "satisfactory." S&P could also consider an outlook revision to stable, if it believes the company's pro forma FFO to debt ratio is likely to strengthen to about 20%. AURORA DIAGNOSTICS: Signs 4th Amendment to Loan Pact with Cerberus ------------------------------------------------------------------ Aurora Diagnostics Holdings, LLC, entered into a fourth amendment to its Financing Agreement dated as of July 31, 2014, by and among Aurora Diagnostics, LLC, as borrower, the Company and certain subsidiaries of the Borrower, as guarantors, the lenders, and Cerberus Business Finance, LLC, as administrative agent and collateral agent. Pursuant to the Financing Agreement, the Borrower borrowed a total of $25,000,000 under the initial delayed draw term loan. Prior to the Fourth Amendment Effective Date, the Company had $5,400,000 of excess funds remaining from such Term Loan draw. The fourth amendment provides that from and after the Fourth Amendment Effective Date until Oct. 31, 2015, the Borrower may use the Excess Loan Proceeds to (i) consummate certain permitted acquisitions or (ii) pay the related transaction costs for certain past acquisitions. However, if the Borrower does not use such Excess Loan Proceeds for a Permitted Purpose on or prior to Oct. 31, 2015, then pursuant to the terms of the fourth amendment, the Borrower must repay the Term Loan in the amount of the unused Excess Loan Proceeds. The fourth amendment contains customary representations and warranties applicable to the Company and its subsidiaries, including the Borrower. About Aurora Diagnostics Headquartered in Palm Beach Gardens, Florida, Aurora Diagnostics Holdings, LLC, through its subsidiaries, provides physician-based general anatomic and clinical pathology, dermatopathology, molecular diagnostic services and other esoteric testing services to physicians, hospitals, clinical laboratories and surgery centers. The company recognized approximately $260 million in revenue for the 12 months ended June 30, 2013. The company is majority owned by equity sponsors KRG Capital Partners and Summit Partners. Aurora Diagnostics reported a net loss of $55.4 million on $243 million of net revenue for the year ended Dec. 31, 2014, compared to a net loss of $73 million on $248 million of net revenue for the year ended Dec. 31, 2013. As of June 30, 2015, the Company had $270.4 million in total assets, $434.5 million in total liabilities and a members' deficit of $164.1 million. * * * As reported by the Troubled Company Reporter on Sept. 27, 2013, Moody's Investors Service downgraded Aurora's Corporate Family Rating to Caa2 from B3 and Probability of Default Rating to Caa2- PD from B3-PD. Moody's also lowered the debt ratings of Aurora Diagnostics Holdings, LLC's and Aurora Diagnostics, LLC (collectively Aurora). Concurrently, Moody's downgraded Aurora's Speculative Grade Liquidity Rating to SGL-4 from SGL-3. The outlook for the ratings remains negative. The downgrade of the ratings reflects Moody's expectation that the company will see continued difficulty in mitigating a significant decline in revenue and EBITDA. This stems from a reduction in Medicare reimbursement due to a decrease in rates and sequestration, continued challenging volume growth trends and threats of additional reimbursement reductions. This will negatively impact the company's credit metrics, constrain Aurora's ability to repay debt and pressure the company's liquidity position. Moody's also has concerns about the sustainability of the company's capital structure given its significant debt load and related interest burden. In the Aug. 7, 2014, edition of the TCR, Standard & Poor's Ratings Services raised its corporate credit rating on Palm Beach Gardens, Fla.-based anatomic pathology services provider Aurora Diagnostics Holdings LLC to 'CCC+' from 'CCC'. The outlook is stable. AZUSA CITY: Moody's Affirms Ba2 Rating on 2003 Refunding COPs ------------------------------------------------------------- Moody's Investors Service has affirmed the city of Azusa's (CA) Issuer Rating at Baa1 and the city's 2003 Lease Revenue Refunding Certificates of Participation rating at Ba2. The outlook has been changed to stable from negative. SUMMARY RATING RATIONALE The Baa1 issuer rating incorporates the city's growing property tax base, improving economic profile, below-average socioeconomic profile and improved yet still weak financial position. The rating also reflects the city's very low direct debt burden and moderate pension and OPEB burdens. The Baa1 issuer rating represents what the city's general obligation (GO) rating would be if the city had such 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 Ba2 rating on the city's certificates of participation reflect the less secure pledge for lease obligation payments and the additional risk to bondholders from the city's financial, operational and economic condition over the more secure GO pledge. A lease pledge is a contractual obligation, on parity with a city's other unsecured obligations, backed by all of the city's available financial resources. OUTLOOK The stable outlook reflects the city's improved yet still very modest reserve position, management's commitment to rebuilding reserves, and improving economic trends. WHAT COULD MAKE THE RATING GO UP Significantly improved and sustained financial position, including increased reserve and cash positions Sustained growth in AV and improved socioeconomic indicators WHAT COULD MAKE THE RATING GO DOWN Sustained fiscal imbalance resulting in deterioration of reserves Negative operating cash flows leading to reliance on inter-fund and/or third-party resources OBLIGOR PROFILE The city is located in the greater Los Angeles metropolitan area, 25 miles northeast of Los Angeles city (Aa2/stable). The city's growth is tied to the greater Los Angeles metropolitan area. The city's employment base is fairly diverse and includes aerospace-defense, higher education, local government, and retail. LEGAL SECURITY The COPs are lease-backed obligations, the payment of which is conditioned only on continued use/occupancy of the leased asset. The lease obligation is the city's Civic Center Complex and associated land. The debt service is secured by the city's covenant to annually budget and appropriate lease payments from legally available revenues. USE OF PROCEEDS Not applicable RATING METHODOLOGY The principal methodology used in the Issuer rating was US Local Government General Obligation Debt published in January 2014. The principal methodology used in rating the Certificates of Participation was The Fundamentals of Credit Analysis for Lease-Backed Municipal Obligations published in December 2011. BALMORAL RACING: Horse Races Face Cancellation ---------------------------------------------- Katy Stech, writing for The Wall Street Journal, reported that an advocacy group within Illinois' horse-racing industry is fighting to save live racing at the financially struggling Maywood Park track for the rest of the year. According to the report, the Illinois Harness Horseman's Association is fighting a court battle against racetrack officials, who are proposing to cancel harness horse races after Oct. 3, arguing that the closure would unfairly force "an immediate eviction" on more than 100 horses and about 50 people who live in dorms at the track in Chicago's Melrose Park suburb. In court papers, Maywood Park officials told a bankruptcy judge that closing early would save $165,000 in track maintenance costs, manure removal, security and other operating costs, the report related. About Balmoral Racing Balmoral Racing Club, Inc., and Maywood Park Trotting Association, Inc. operate pari-mutuel wagering at the Balmoral Park and Maywood Park racetracks in Illinois under a license granted by the State of Illinois pursuant to the Illinois Horse Racing Act of 1975. Balmoral Racing Club (Bankr. N.D. Ill. Case No. 14-45711) and Maywood Park Trotting Association (Bankr. N.D. Ill. Case No. 14-45718) filed for Chapter 11 bankruptcy protection on Dec. 24, 2014, to continue operations into 2015 and protect themselves against property seizure. Both cases were consolidated on Dec. 31, 2014. Alexander F Brougham, Esq., Chad H. Gettleman, Esq., and Nathan Q. Rugg, Esq., at Adelman & Gettleman, Ltd., serve as the Debtors' bankruptcy counsel. Neither a trustee nor a committee of unsecured creditors has been appointed in the Chapter 11 Cases. BATTLE CREEK: Creditor Seeks Dismissal of Ch. 11 Case ----------------------------------------------------- Charles A. Orwick, III, Trustee of the Charles A. Orwick, III, Trust of 2001, asks the United States Bankruptcy Court for the Central District of California, San Fernando Valley Division, to dismiss the Chapter 11 case of Battle Creek Conservation Ventures, LLC. The Trustee asserts that there is ample cause under Section 1112(b) of the Bankruptcy Code to dismiss the Single Asset Real Estate case, noting that there has been no plan of reorganization proposed, the Debtor has failed to seek approval to employ an appraiser or obtain an appraisal of the Real Property, and there is no chance or reorganization of the Debtor. In the alternative, the Trustee asks the Court convert the Debtor's Chapter 11 case to a case under Chapter 7, whichever is in the best interests of creditors and the estate, for cause. The Debtor, in response, argued that there is no good cause for dismissal or conversion of its Chapter 11 case, maintaining that the estate has been properly managed and there is a strong likelihood that the case will result in a feasible confirmed plan for the benefit of all creditors and interested parties. James R. Felton, the state court-appointed receiver for the Debtor, stated, in support of the Debtor's objection, that "I do know that there is enough evidence to suggest that an accounting needs to be done so that the Receivership estate can determine who invested what." The Debtor is represented by: Yi Sun Kim, Esq. GREENBER & BASS LLP 16000 Ventura Blvd, Suite 1000 Encino, California 91436 Tel: (818) 382-6200 Fax: (818) 986-6534 Email: ykim@greenbass.com Trustee of the Charles A. Orwick, III, Trust of 2001, is represented by: Andrew Brian Reisinger, Esq. Walter R. Dahl, DAHL LAW, ATTORNEYS AT LAW 2304 "N" Street Sacramento, CA 95816-5716 Tel: (916) 446-8800 Fax: (916) 741-3346 Email: wdahl@dahllaw.net abreisinger@dahllaw.net -- and -- Joshua J. Divine, Esq. REESE SMALLEY WISEMAN & SCHWEITZER 1265 Willis Street Redding, CA 96001 Tel: (530) 241-1611 Fax: (530) 241-5106 Email: josh.divine@rswslaw.com About Battle Creek Conservation Battle Creek Conservation Ventures, LLC, commenced a Chapter 11 bankruptcy case (Bankr. C.D. Cal. Case No. 15-11683) on May 13, 2015. Judge Maureen Tighe presides over the case. The Debtor estimated assets of $11 million and total liabilities of $9.3 million. BEAR ISLAND: First Amended Plan Declared Effective July 28 ---------------------------------------------------------- Bear Island Paper Co LLC, nka Estate BIPCO LLC, notified the U.S. Bankruptcy Court for the Eastern District of Virginia that its first amended Chapter 11 plan of liquidation became effective as of July 28, 2015. As reported in the Troubled Company Reporter on June 10, 2015, the Hon. Keith L. Phillips confirmed the Debtor's first amended Chapter 11 plan. The Court approved on Oct. 7, 2011, the Debtor's Disclosure Statement which, among other things, authorized the Debtor to solicit votes on the Plan. On Feb. 24, 2015, the Debtor, the Canadian Debtors and BD White Birch Investment LLC, as the purchaser of assets, executed an estate allocation compromise and settlement agreement which fully and consensually resolves each of the estate allocation issues. The Debtor sought approval of the estate allocation settlement agreement at the confirmation hearing contemporaneously with confirmation of the Amended Plan. The Amended Plan dated March 31, 2015, contains modifications that, among other things, reflect the outcome of the estate allocation issues. The Bankruptcy Court's entry of the confirmation order will constitute the Bankruptcy Court's approval of the estate allocation settlement agreement and the estate allocation. The Debtor's portion of the estate allocation (i) vested in the Debtor at sale closing date; and (ii) will vest in Liquidating BIPCo on the Effective Date. As of the Effective Date, the Wind Down Creditors' Committee, on behalf of Liquidating BIPCo, will retain the Plan Administrator. The Plan Administrator will be responsible for implementing the liquidation and Wind Down contemplated by this Plan, including monetizing or abandoning any assets, resolving all claims, and distributing cash pursuant to the Plan, pursuing, settling or abandoning all remaining causes of action delegated to the Plan Administrator by the Wind Down Creditors' Committee or otherwise vested in the Debtor's Estate, and causing Liquidating BIPCo to comply with the ASA, in each case in accordance with this Plan, the Plan Administrator Agreement, the Wind Down Budget, and the Administrative Fund Procedures. A full-text copy of the Debtor's first amended plan is available for free at http://is.gd/Y0GX3O A full-text copy of the Debtor's disclosure statement explaining the plan is available for free at http://is.gd/K7UVzN About Bear Island Canada-based White Birch Paper Company was the second largest newsprint producer in North America. As of Dec. 31, 2009, the White Birch Group held a 12% share of the North American newsprint market and employed roughly 1,300 individuals (the majority of which reside in Canada). Bear Island Paper Company, L.L.C., is a U.S.-based unit of White Birch. Bear Island filed a voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. E.D. Va. Case No. 10-31202) on Feb. 24, 2010. At June 30, 2011, the Company had $141.9 million in total assets, $153.2 million in total liabilities, and a stockholders' deficit of $11.3 million. White Birch filed for bankruptcy protection under Canada's Companies' Creditors Arrangement Act, before the Superior Court for the Province of Quebec, Commercial Division, Judicial District of Montreal, Canada. White Birch and five other affiliates F.F. Soucy Limited Partnership; F.F. Soucy, Inc. & Partners, Limited Partnership; Papier Masson Ltee; Stadacona Limited Partnership; and Stadacona General Partner, Inc. -- also sought bankruptcy protection under Chapter 15 of the U.S. Bankruptcy Code (Bankr. E.D. Va. Case No. 10-31234). Jonathan L. Hauser, Esq., at Troutman Sanders LLP, in Virginia Beach, Virginia Beach, serves as counsel to White Birch in the Chapter 11 case. Richard M. Cieri, Esq., Christopher J. Marcus, Esq., and Michael A. Cohen, Esq., at Kirkland & Ellis LLP, in New York, serve as counsel to Bear Island. Jonathan L. Hauser, Esq., at Troutman Sanders LLP, in Virginia Beach, Virginia, serve as co-counsel to Bear Island. AlixPartners LLP serves as financial and restructuring advisors to Bear Island, and Lazard Freres & Co., serves as investment banker. Garden City Group is the claims and notice agent. Jason William Harbour, Esq., at Hunton & Williams LLP, in Richmond, Virginia, represents the Official Committee of Unsecured Creditors. Chief Judge Douglas O. Tice, Jr., was initially assigned to handle the Chapter 11 and Chapter 15 cases. He retired from the court on June 30, 2013. Bear Island was authorized by the bankruptcy judge in November 2010 to sell the business to a group consisting of Black Diamond Capital Management LLC, Credit Suisse Group AG and Caspian Capital Advisors LLC. The sale closed in September 2012. The caption for Bear Island's case was changed to "Estate BIPCO, LLC" as required by the asset sale agreement. Under a plan proposed for Bear Island, first- and second-lien creditors with $424.9 million and $105.1 million in claims, respectively, are expected to recover between 0.5 percent and 4 percent. Unsecured creditors with $1.4 million in claims are to receive the same dividend. In June 2015, the Troubled Company Reporter said the Hon. Keith L. Phillips, who took over from Judge Tice, confirmed the first amended Chapter 11 plan of liquidation filed by Estate BIPCO. BERNARD L. MADOFF: Aurelia Finance Directors Settle Criminal Claims ------------------------------------------------------------------- Carmen Germaine at Bankruptcy Law360 reported that five former directors of a Swiss wealth management firm have settled criminal claims that they lost $800 million in clients' funds in Bernard L. Madoff's Ponzi scheme, the Geneva prosecutor's office announced on Sept. 4, 2015. The five directors, whom the prosecutor's office declined to name but media reports have identified as former employees of Geneva-based Aurelia Finance, have agreed to pay "strong compensation" to settle former clients' criminal complaints alleging the executives concentrated clients' funds in a Madoff "feeder fund" losing hundreds of millions of dollars. About Bernard L. Madoff Bernard L. Madoff Investment Securities LLC and Bernard L. Madoff orchestrated the largest Ponzi scheme in history, with losses topping US$50 billion. On Dec. 15, 2008, the Honorable Louis A. Stanton of the U.S. District Court for the Southern District of New York granted the application of the Securities Investor Protection Corporation for a decree adjudicating that the customers of BLMIS are in need of the protection afforded by the Securities Investor Protection Act of 1970. The District Court's Protective Order (i) appointed Irving H. Picard, Esq., as trustee for the liquidation of BLMIS, (ii) appointed Baker & Hostetler LLP as his counsel, and (iii) removed the SIPA Liquidation proceeding to the Bankruptcy Court (Bankr. S.D.N.Y. Adv. Pro. No. 08-01789) (Lifland, J.). Mr. Picard has retained AlixPartners LLP as claims agent. On April 13, 2009, former BLMIS clients filed an involuntary Chapter 7 bankruptcy petition against Bernard Madoff (Bankr. S.D.N.Y. 09-11893). The petitioning creditors -- Blumenthal & Associates Florida General Partnership, Martin Rappaport Charitable Remainder Unitrust, Martin Rappaport, Marc Cherno, and Steven Morganstern -- assert US$64 million in claims against Mr. Madoff based on the balances contained in the last statements they got from BLMIS. On April 14, 2009, Grant Thornton UK LLP as receiver placed Madoff Securities International Limited in London under bankruptcy protection pursuant to Chapter 15 of the U.S. Bankruptcy Code (Bankr. S.D. Fla. 09-16751). The Chapter 15 case was later transferred to Manhattan. In June 2009, Judge Lifland approved the consolidation of the Madoff SIPA proceedings and the bankruptcy case. Judge Denny Chin of the U.S. District Court for the Southern District of New York on June 29, 2009, sentenced Mr. Madoff to 150 years of life imprisonment for defrauding investors in United States v. Madoff, No. 09-CR-213 (S.D.N.Y.). From recoveries in lawsuits coupled with money advanced by SIPC, Mr. Picard has commenced distributions to victims. As of the end of May 2015, the SIPA Trustee has recovered more than $10.699 billion and has distributed approximately $7.576 billion. When additional settlements awaiting distribution are taken into account, the recovery in the Madoff liquidation proceeding totals $10.734 billion. BIRMINGHAM COAL: Files Clawback Suit Against Computershare ---------------------------------------------------------- Birmingham Coal & Coke Company, Inc., et al., filed an adversary complaint against Computershare Trust Company of Canada seeking authority from the United States Bankruptcy Court for the Northern District of Alabama Southern Division to: (a) avoid leasehold mortgages and junior equipment liens as fraudulent transfers under Sections 544 and 548 of the Bankruptcy Code; and (b) avoid junior equipment liens as preferential transfers under Sections 547 and 550. The Debtors explain that their intention is to avoid and recover all transfers made to and for the benefit of Computershare. The Debtor reserves the right to amend its original complaint to include (i) further information regarding the transfers; (ii) additional transfers; (iii) modifications of and/or revision of the Computershare's name; (iv) additional defendants and (v) additional causes of action. The Debtors are represented by: C. Ellis Brazeal III, Esq. JONES WALKER LLP 1819 5th Avenue North Birmingham, Alabama 35203 Tel: (205) 244-5237 Fax: (205) 244-5400 Email: ebrazeal@joneswalker.com -- and -- Mark A. Mintz, P.C., Esq. Laura A. Ashley, P.C., Esq. JONES WALKER LLP 201 St. Charles Ave. Suite 5100 New Orleans, LA 70170 Tel: (504) 582-8000 Fax: (504) 582-8011 Email: mmintz@joneswalker.com lashley@joneswalker.com About Birmingham Coal Birmingham Coal & Coke Company, Inc. produces and markets coal to industrial, utility and export markets. It owns and operates three coal mines with an average annual coal production of approximately 480,000 tons. The company also offers coal brokerage services. Birmingham Coal & Coke Company, Inc. was founded in 2000 and is based in Birmingham, Alabama. As of May 9, 2011, Birmingham Coal operates as a subsidiary of CanAm Coal Corp. On May 27, 2015, Birmingham Coal and affiliates Cahaba Contracting & Reclamation LLC, and RAC Mining LLC each filed a voluntary petition for Chapter 11 reorganization (Bankr. N.D. Ala. Lead Case No. 15-02075) in Birmingham, Alabama. The Debtors tapped Jones Walker LLP as counsel. Birmingham Coal and Cahaba Contracting each estimated $10 million to $50 million in assets and debt. RAC Mining estimated $1 million to $10 million in assets and debt. BIRMINGHAM COAL: Needs Until Dec. 23 to Remove Actions ------------------------------------------------------ Birmingham Coal & Coke Company, Inc., et al., asks the United States Bankruptcy Court for the Northern District of Alabama, Southern Division, to extend period within which they may remove actions under 28 U.S.C. section 1452 up to and including December 23, 2015. The Debtors explain that since the Petition Date, they and their professionals have devoted a significant amount of time and effort ensuring a smooth transition of the their operations into Chapter 11. The requested extension of time will allow the them to make reasoned decisions concerning the Actions and the relative importance of each to restructuring, the Debtors add. The Debtors are represented by: C. Ellis Brazeal III, Esq. JONES WALKER LLP 1819 5th Avenue North Birmingham, Alabama 35203 Tel: (205) 244-5237 Fax: (205) 244-5400 Email: ebrazeal@joneswalker.com -- and -- Mark A. Mintz, P.C., Esq. Laura A. Ashley, P.C., Esq. JONES WALKER LLP 201 St. Charles Ave. Suite 5100 New Orleans, LA 70170 Tel: (504) 582-8000 Fax: (504) 582-8011 Email: mmintz@joneswalker.com lashley@joneswalker.com About Birmingham Coal Birmingham Coal & Coke Company, Inc. produces and markets coal to industrial, utility and export markets. It owns and operates three coal mines with an average annual coal production of approximately 480,000 tons. The company also offers coal brokerage services. Birmingham Coal & Coke Company, Inc. was founded in 2000 and is based in Birmingham, Alabama. As of May 9, 2011, Birmingham Coal operates as a subsidiary of CanAm Coal Corp. On May 27, 2015, Birmingham Coal and affiliates Cahaba Contracting & Reclamation LLC, and RAC Mining LLC each filed a voluntary petition for Chapter 11 reorganization (Bankr. N.D. Ala. Lead Case No. 15-02075) in Birmingham, Alabama. The Debtors tapped Jones Walker LLP as counsel. Birmingham Coal and Cahaba Contracting each estimated $10 million to $50 million in assets and debt. RAC Mining estimated $1 million to $10 million in assets and debt. BULLION DIRECT: Committee Taps Dykema Cox as Attorney ----------------------------------------------------- The Official Committee of Unsecured Creditors for Bullion Direct Inc. asks the U.S. Bankruptcy Court for the Western District of Texas for permission to retain Dykema Cox Smith as its attorney. The firm will provide legal services as follows: a) Monitor the chapter 11 case; b) Investigate estate causes of action; c) Evaluate estate assets and sale processes; d) Communicate with creditors; e) Ensure the fairness and efficiency of chapter 11 processes such as claims reconciliation and plan formulation and confirmation; and f) Assist the Committee with its other duties under Section 1103(c) of the Bankruptcy Code. The primary attorneys within Dykema who will represent the Committee are: Jesse Moore, Esq. Senior Attorney $335 Travis Plummer, Esq. Associate $280 Paralegal $180 The Committee assures 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: Jesse T. Moore, Esq. Dykema Cox Smith 111 Congress Ave., Suite 1800 Austin, Texas 78701 Fax: (512) 703-6399 Tel: (512) 703-6325 Email: jmoore@dykema.com About BullionDirect BullionDirect, Inc. filed a Chapter 11 bankruptcy petition (Bankr. W.D. Tex. Case No. 15-10940) on July 20, 2015. Dan Bensimon signed the petition as president. The Debtor disclosed total assets of $48,107 and total liabilities of $16,955,330 as of the Chapter 11 filing. Joseph D. Martinec, Esq., at Martinec, Winn & Vickers, P.C., represents the Debtor as counsel. Judge Tony M. Davis presides over the case. The U.S. Trustee for Region 7 appointed three creditors to serve on an official committee of unsecured creditors. BULLIONDIRECT INC: Amends Schedules of Assets and Liabilities ------------------------------------------------------------- BullionDirect Inc. filed with the U.S. Bankruptcy Court for the Western District of Texas an amended schedules of assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ----------- ----------- A. Real Property $0 B. Personal Property $486,107 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $16,353 E. Creditors Holding Unsecured Priority Claims $52 F. Creditors Holding Unsecured Non-Priority Claims $24,231,140 ----------- ----------- Total $486,107 $24,247,546 A copy of the schedules is available for free at: http://bankrupt.com/misc/BULLIONDIRECT_Amended_SAL.pdf About BullionDirect BullionDirect, Inc. filed a Chapter 11 bankruptcy petition (Bankr. W.D. Tex. Case No. 15-10940) on July 20, 2015. Dan Bensimon signed the petition as president. The Debtor disclosed total assets of $48,107 and total liabilities of $16,955,330 as of the Chapter 11 filing. Joseph D. Martinec, Esq., at Martinec, Winn & Vickers, P.C., represents the Debtor as counsel. Judge Tony M. Davis presides over the case. The U.S. Trustee for Region 7 appointed creditors to serve on an official committee of unsecured creditors. CAESARS ENTERTAINMENT: Second Lien Bond RSA Expires --------------------------------------------------- The Restructuring Support and Forbearance Agreement, dated as of July 20, 2015, among Caesars Entertainment Corporation, Caesars Entertainment Operating Company, Inc., a majority owned subsidiary of CEC, and holders of a significant amount of claims in respect of CEOC's 12.75% Second-Priority Senior Secured Notes due 2018, 10.00% Second-Priority Senior Secured Notes due 2018 and 10.00% Second-Priority Senior Secured Notes due 2015, expired pursuant to its terms, on Sept. 18, 2015, and did not become effective. Although CEC and CEOC were in discussions with holders of the Second Lien Bond Claims to extend the Second Lien Bond RSA, the parties could not agree upon terms for the extension, according to a regulatory filing with the Securities and Exchange Commission. Notwithstanding the expiration of the Second Lien Bond RSA, CEC and CEOC will continue to engage in discussions with junior creditors on the terms of a consensual plan of reorganization for CEOC. The expiration of the Second Lien Bond RSA does not affect the restructuring support and forbearance agreements that CEC and CEOC have entered into with CEOC's first lien noteholders and bank lenders. 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. CAL DIVE: Gets Green Light to Sell Vessel to Uncle John Holding --------------------------------------------------------------- An affiliate of Cal Dive International Inc. won court approval to sell a vessels it owns to Uncle John Holding LLC. U.S. Bankruptcy Judge Christopher Sontchi allowed Cal Dive Offshore Contractors Inc. to sell the Bahamas-flagged vessel Uncle John to the company. Uncle John Holding emerged as the winning bidder at a bankruptcy auction held on Sept. 2. It offered $1.365 million for the vessel, beating out rival bidder Marine Environmental Remediation Group LLC, which offered $650,000. The vessel will be sold to Marine Environmental, the court-approved "back-up bidder," in case Cal Dive's sale transaction with Uncle John Holding falls through, according to court filings. C-MAR America Inc. had earlier expressed its opposition to the sale, saying none of the documents executed by Cal Dive contains a provision to account for maritime liens. The company said it holds a secured claim in the form of a maritime lien on the vessel. About Cal Dive Houston, Texas-based marine contractor Cal Dive International, Inc., provides manned diving, pipelay and pipe burial, platform installation and salvage, and light well intervention services to the offshore oil and natural gas industry on the Gulf of Mexico OCS, Northeastern U.S., Latin America, Southeast Asia, China, Australia, West Africa, the Middle East, and Europe. Cal Dive and its U.S. subsidiaries filed simultaneous voluntary petitions (Bankr. D. Del. Lead Case No. 15-10458) on March 3, 2015. Through the Chapter 11 process, the Company intends to sell non- core assets and intends to reorganize or sell as a going concern its core subsea contracting business. Cal Dive disclosed total assets of $571 million and total debt of $411 million as of Sept. 30, 2015. The Debtors tapped Richards, Layton & Finger, P.A., as counsel, O'Melveny & Myers LLP, as co-counsel; Jones Walker Jones Walker LLP as corporate counsel; and Kurtzman Carson Consultants, LLC, as claims and noticing agent. The Debtors also tapped Carl Marks Advisory Group LLC as crisis managers and appoint F. Duffield Meyercord as chief restructuring officer. The U.S. Trustee for Region 3 amended the committee of unsecured creditors in the case from five-member committee to four members. The Committee retained Akin Gump Strauss Hauer & Feld LLP and Pepper Hamilton LLP as co-counsel; and Guggenheim Securities, LLC as exclusive investment banker. Cal Dive Offshore Contractors, Inc. disclosed total assets of $233,273,806 and $311,339,932 in liabilities as of the Chapter 11 filing. CASA EN DENVER: Oct. 15 Hearing on Bid to Use Cash Collateral ------------------------------------------------------------- U.S. Bankruptcy Judge Robert Mark is set to hold a hearing on Oct. 15 to consider final approval of the request of Casa en Denver Inc. and Casa Media Partners LLC to use the cash collateral of Bank of Commerce. Casa Media Partners, LLC, and Casa en Denver, Inc., commenced Chapter 11 bankruptcy cases (Bankr. S.D. Fla. Case Nos. 15-16741 and 15-16746) in Miami, Florida on April 15, 2015. The petition was signed by Juan Salvador Gonzalez, the chief financial officer. Judge Hon. Robert A Mark presides over the cases. The Debtors are represented by Kristopher Aungst, Esq., at Tripp Scott, P.A., as their counsel. According to the docket, the deadline to file claims for governmental units is on Oct. 13, 2015. CERTENEJAS INCORPORADO: Case Summary & 7 Top Unsecured Creditors ---------------------------------------------------------------- Debtor: Certenejas Incorporado PO Box 1753 CIDRA, PR 00739 Case No.: 15-07313 Nature of Business: Short-term guest house Chapter 11 Petition Date: September 22, 2015 Court: United States Bankruptcy Court District of Puerto Rico (Old San Juan) Debtor's Counsel: Charles Alfred Cuprill, Esq. CHARLES A CUPRILL, PSC LAW OFFICES 356 Calle Fortaleza, Second Floor San Juan, PR 00901 Tel: 787 977-0515 Email: cacuprill@cuprill.com Total Assets: $4.6 million Total Liabilities: $4.8 million The petition was signed by Luis J. Meaux Vazquez, president. A list of the Debtor's seven largest unsecured creditors is available for free at http://bankrupt.com/misc/prb15-07313.pdf CHINA CERAMICS: Receives Nasdaq Listing Non-Compliance Notice ------------------------------------------------------------- China Ceramics Co., Ltd., a Chinese manufacturer of ceramic tiles used for exterior siding and for interior flooring and design in residential and commercial buildings, on Sept. 22 disclosed that on September 21, 2015, it received a written notice from the Listing Qualifications department of The Nasdaq Stock Market indicating that the Company is not in compliance with the minimum bid price requirement of $1.00 set forth in Nasdaq Listing Rule 5450(a)(1) for continued listing on the Nasdaq Global Market. The Nasdaq Listing Rules require listed securities to maintain a minimum bid price of $1.00 per share and, based upon the closing bid price for the 30 consecutive days ended September 17, 2015, the Company did not meet this requirement. China Ceramics has been provided a 180 day period in which to regain compliance. During this period, the closing bid price of the Company's ordinary shares must be at least $1.00 for a minimum of ten consecutive business days to regain compliance. In addition, following the initial 180 day period, China Ceramics may be eligible for an additional 180 day period to regain compliance after review by the Nasdaq Staff. The notification letter has no effect on the listing of the Company's ordinary shares at this time and the shares will continue to trade on the Nasdaq Global Market under the ticker "CCCL". About China Ceramics Co., Ltd. China Ceramics Co., Ltd. -- http://www.cceramics.com/-- is a manufacturer of ceramic tiles in China. The Company's ceramic tiles are used for exterior siding, interior flooring, and design in residential and commercial buildings. China Ceramics' products, sold under the "Hengda" or "HD", "Hengdeli" or "HDL", the "TOERTO" and "WULIQIAO" brands, and the "Pottery Capital of Tang Dynasty" brands, are available in over 2,000 style, color and size combinations and are distributed through a network of exclusive distributors as well as directly to large property developers. CONGREGATION BIRCHOS: Hires Carlebach as Legal Counsel ------------------------------------------------------ Congregation Birchos Yosef received court approval to hire the Law Offices of David Carlebach, Esq. The order, issued by U.S. Bankruptcy Judge Robert Drain, allowed Congregation Birchos to hire the firm to replace Pick & Zabicki LLP as its legal counsel. Judge Drain approved the hiring of Pick & Zabicki in May this year, court filings show. As legal counsel, Carlebach will provide Congregation Birchos with legal advice about its powers and duties as a debtor-in-possession in the continued management of its property during its bankruptcy. The New York-based firm will also prepare legal documents and will help formulate and negotiate a plan of reorganization with Congregation Birchos' creditors. Congregation Birchos will pay Carlebach on an hourly basis and will reimburse the firm for work-related expenses. The hourly rates range from $400 to $550 for partners; $300 to $350 for associates; and $150 to $250 for paralegals. David Carlebach, Esq., disclosed in a court filing that he does not have interest adverse to Congregation Birchos' estate, and that he is a "disinterested party" within the meaning of section 101(14) of the Bankruptcy Code. Mr. Carlebach can be reached at: Law Offices of David Carlebach, Esq. 55 Broadway Suite 1902 New York, NY 10006 Tel: (212) 785-3041 Fax: (646) 355-1916 E-mail: david@carlebachlaw.com About Congregation Birchos Yosef Congregation Birchos Yosef is a religious corporation which was formed on Jan. 16, 1985 for the purposes of creating and maintaining a "House of Worship" in accordance with the traditions of the Hebrew faith and to serve and advance the affairs of the surrounding community under the leadership of the Grand Rebbe of Nikolsburg. Its principal office is located at 201 Route 306, Monsey, New York. It has real properties located in Spring Valley and Monsey, New York. Congregation Birchos Yosef sought bankruptcy protection (Bankr. S.D.N.Y. Case No. 15-22254) in White Plains, New York, on Feb. 26, 2015. Breindy Lebovits signed the petition as vice-president. The Debtor estimated assets and debt of $10 million to $50 million. CORPORATE RESOURCE: Consents to Case Trustee Appointment -------------------------------------------------------- Matt Chiappardi at Bankruptcy Law360 reported that Corporate Resource Services Inc., which said it sought bankruptcy protection after learning a closely tied payroll company didn't remit money to taxing authorities, consented to the U.S. Trustee Office's request that a Chapter 11 trustee oversee its case, but slammed the notion it was "grossly mismanaged." In a motion before the U.S. Bankruptcy Court for the Southern District of New York, CRS said it has been discussing the possibility of a Chapter 11 trustee with the watchdog since its case began in July. About Corporate Resource Corporate Resource Services, Inc., was a New York-based provider of employment and human resource solutions for corporations throughout the United States. CRS leases its headquarters and does not own any real property. About 90% of CRS shares are owned by Robert Cassera and the balance are traded OTC. As of Dec. 31, 2014, CRS was one of the largest employment Staffing companies in the U.S., providing employment and human resources solutions for corporations with annual sales of about one billion dollars. In February 2015, CRS began an orderly wind down of operations after discovering that TS Employment, Inc., a privately held company owned by Mr. Cassera, failed to remit tens of millions of dollars of the Debtors' withholding taxes to taxing authorities. TS Employment Inc., a professional employer organization that provided payroll-related services for CRS, sought Chapter 11 protection (Bankr. S.D.N.Y. Case No. 15-10243) in Manhattan on Feb. 2, 2015. TSE tapped Scott S. Markowitz, Esq., at Tarter Krinsky & Drogin LLP, in New York, as counsel. Realization Services Inc. serves as the Debtor's consultant. CRS and its subsidiaries sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 15-11546) on July 23, 2015, to complete their orderly wind down of operations. Judge Kevin J. Carey presides over the Chapter 11 cases. The Debtors tapped (a) Gellert Scali Busenkell & Brown, LLC, as bankruptcy counsel, (b) Wilmer Cutler Pickering Hale & Dorr LLP, as special counsel; (c) Carter Ledyard & Milburn LLP, as special SEC counsel, (d) SSG Capital Advisors as financial advisors and investment bankers, and (e) Rust Omni LLC as claims agent. CRS estimated $10 million to $50 million in assets and $50 million to $100 million in debt. COTY INC: Moody's Assigns Ba1 Corp. Family Rating, Outlook Stable ----------------------------------------------------------------- Moody's Investors Service assigned a Ba1 Corporate Family Rating and Ba2-PD Probability of Default Rating (PDR) to Coty Inc. and provisional (P)Ba1 ratings on its proposed senior secured credit facilities. Also, in conjunction with Coty's merger with a portion of Procter & Gamble's ("P&G") Beauty business, Moody's assigned a provisional (P)Ba1 rating on Beauty business NewCo's proposed senior secured credit facilities. The ratings reflect Moody's assumption that the transaction will close as proposed in June 2016 and that all $8.5 billion of credit facilities will benefit from cross guarantees of both Coty and Beauty Business Newco. Should the transaction not close as anticipated, or the structure or financing profile change, ratings could change. Coty plans to utilize $4.0 billion of net proceeds to refinance its existing debt and $4.5 billion to partially pay for the acquisition of P&G's Beauty business. The rating outlook is stable. These ratings were assigned: Coty Inc.: Corporate Family Rating at Ba1 Probability of Default Rating at Ba2-PD $1.5 Billion Senior Secured Bank Credit Revolver at (P)Ba1 (LGD 2) $1.5 Billion Senior Secured Bank Term Loan A at (P)Ba1 (LGD 2) $500 Million Senior Secured Bank Term Loan B at (P)Ba1 (LGD 2) EURO [500 Equivalent of $500 mm] Million Senior Secured Bank Term Loan B at (P)Ba1 (LGD 2) Speculative Grade Liquidity Rating at SGL-1 Beauty Business NewCo: $1.5 Billion Senior Secured Bank Credit Revolver at (P)Ba1 (LGD 2) $2.0 Billion Senior Secured Bank Term Loan A at (P)Ba1 (LGD 2) $1.0 Billion Senior Secured Bank Term Loan B at (P)Ba1 (LGD 2) The rating outlook is stable All ratings assigned are subject to Moody's review of final closing documents. Moody's has evaluated Coty on an enterprise basis, and has assumed that the acquisition of P&G's Beauty business closes as currently envisioned. Coty's Ba1 Corporate Family Rating (CFR) reflects the company's large pro-forma scale, a portfolio of strong brands, and good product diversification tempered by moderate leverage, event risk and growth challenges. Coty's concentration in fragrance and color cosmetics creates cyclical exposure to discretionary consumer spending and requires continual product and brand investment to minimize revenue volatility as these categories tend to be more fashion driven than other beauty products. The acquisition of PG Beauty business via a reverse Morris Trust bears execution risk as it will effectively double Coty's size, though Moody's notes that the P&G Beauty brands will add significant scale and diversity and enhance Coty's global footprint. Coty is nevertheless more concentrated than its primary competitors in mature developed markets, and this creates growth challenges and investment needs to more fully build its global distribution capabilities and brand presence. Moody's expects that Coty will generate modest revenue and EBITDA growth in the next twelve to eighteen months and will benefit from cost restructuring initiatives announced in 2014. The stable rating outlook reflects Moody's view that Coty will continue to grow revenue and generate a healthy level of cash flow. Moody's expects low single digits growth in North America and Europe and that sales in Asia Pacific and other developing markets will continue to grow faster. The rating agency also expects share repurchases to be funded from additional debt and free cash flow, and do not expect significant debt-funded acquisitions. An upgrade could be considered if Coty sustains solid organic growth. Coty would also need to maintain conservative financial policies, including debt-to-EBITDA below 3.0x, and maintain good liquidity. Coty would also need to show commitment to an investment grade rating. The rating could be downgraded if operating performance or margins deteriorate meaningfully, or if there are difficulties with post-merger restructuring efforts. A downgrade could also occur if there is a deterioration in cash flow or liquidity, or if debt/EBITDA is sustained above 4x. Aggressive shareholder friendly actions could also contribute to a downgrade. The principal methodology used in rating Coty was Global Packaged Goods published in June 2013. Coty Inc., headquartered in New York, NY, is one of the leading manufacturers and marketers of fragrance, color cosmetics, and skin and body care products. The company's products are sold in over 130 countries. Coty announced the $12.5 billion acquisition of the Procter & Gamble's Beauty business on July 9th, 2015 and expects to close the transaction in the second half of 2016. CPI HOLDINGS: Moody's Affirms 'B1' CFR, Outlook Positive -------------------------------------------------------- Moody's Investors Service affirmed the B1 corporate family rating and B1-PD probability of default rating of CPI Holdings I, Inc. following the announcement that it will commence an initial public offering ("IPO"). Moody's also affirmed the B1 ratings on the $435 million senior secured term loan and $40 million senior secured revolver of CPI Acquisition, Inc., the debt issuing subsidiary of CPI. The rating outlook was revised to positive from stable. CPI plans to use $115 million of net proceeds from the IPO to repay debt. Upon completion of the IPO (including the underwriter's exercise of the over allotment of shares), CPI will have a public float of about 40% with Tricor Pacific Capital and its affiliates owning 50.1% of the company. RATINGS RATIONALE The B1 rating and positive outlook reflects Moody's expectation that CPI will remain committed to debt reduction. With the repayment of debt using IPO proceeds, adjusted debt to EBITDA will decrease to below 4 times by the end of 2015 from over 5 times for the LTM period. Leverage will likely improve to the low 3 times by the end of 2016 as Moody's projects annual EBITDA of over $100 million. Leverage will further drop if CPI uses excess cash flow over the upcoming year to repay debt. Moody's expects CPI to generate over double digit revenue growth with operating margins of around 20% over the next several years as the company capitalizes on the conversion to EMV cards from magnetic stripe cards in the US. Effective October 1, 2015, U.S. banks and merchants will be subject to the card networks' liability shift in the U.S. for domestic and cross-border counterfeit transactions, whereby the party that doesn't support the use of chip-on-chip credit or debit cards will assume liability for card-present counterfeit card fraud losses. Moody's expects margin expansion to be driven by high revenue growth and operating leverage from investments already made in advance of the market's conversion to EMV cards. The replacement chip cards will generate more revenue and profits per card than the traditional magnetic cards. Moody's also expects CPI to maintain good liquidity over the next year, with cash balances over $10 million and solid free cash flow of at least $40 million. The ratings could be upgraded if it becomes apparent that CPI will generate organic revenue growth of over 15% with EBITDA margins over 25%, reduce adjusted debt to EBITDA to the low 3x on a sustained basis, and produce strong cash flows such that FCF to gross debt exceeds 10% for an extended period of time. Rating Affirmations: Issuer: CPI Holdings I, Inc. Corporate Family Rating, B1 Probability of Default Rating, B1-PD Issuer: CPI Acquisition, Inc. Senior Secured Term Loan due 2022, B1 (LGD3) Senior Secured Revolving Credit Facility due 2020, B1 (LGD3) Outlook Actions: Issuer(s): CPI Holdings I, Inc./CPI Acquisition, Inc. Outlook, Revised to Positive from Stable CPI is a provider of financial payment cards and card services to U.S. card issuing banks and prepaid debit card program managers. The principal methodology used in these ratings was Business and Consumer Services Industry published in December 2014. CREATIVE ARTISTS: Moody's Retains B2 CFR Over $75MM Add-On ---------------------------------------------------------- Moody's says Creative Artists Agency, LLC's (CAA) $75 million first lien term loan add on and $25 million revolver upsize to $125 million will not impact the B2 corporate family rating or the B2 rating on the credit facility. The outlook remains stable. The proceeds are expected to be used to paydown the outstanding balance on the revolver and add cash to the balance sheet. The term loan add on is expected to be fungible with the existing term loan. CRP-2 HOLDINGS: Amends Schedule of Unsecured Nonpriority Claims --------------------------------------------------------------- CRP-2 Holdings AA, LP amended Schedule F, which contains the names of creditors holding unsecured nonpriority claims, to add Rescar Inc. and Village of Downers Grove. Rescar holds a $123,942 claim against the company while the other creditor holds a $1,961 claim, according to the court filing. 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. CRP-2 HOLDINGS: US Trustee Amends Members of Unsec. Committee ------------------------------------------------------------- Patrick S. Layng, the U.S. trustee overseeing the Chapter 11 case of CRP-2 Holdings AA LP, amended the members of the official committee of unsecured creditors in the Debtor's bankruptcy case. The new members of the Committee are: (1) Phil Stafford Colliers International Asset and Property 6250 N. River Rd., Ste. 11-100 Rosemont, IL 60018 (2) Denise Starkey OnX Managed Services, In. 2200 Cabot Dr., Ste. 450 Lisle, IL 60532 (3) John Rowley Harvard Maintenance Inc. 59 Maiden Lane, 17th Floor New York, NY 10038 Tel: 212-730-0001 Fax: 212-269-2474 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 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 creditors to serve on the official committee of unsecured creditors. CURTIS JAMES JACKSON: Sues Former Consultant Over TV Deals ---------------------------------------------------------- The Associated Press reported that rapper 50 Cent, whose real name is Curtis James Jackson III, has filed a lawsuit in U.S. Bankruptcy Court against a former consultant, alleging the man improperly acted as his agent, collecting fees in advance for projects without the rapper's permission. According to the report, the filing seeks at least $810,000 from Andrew Jameson, who 50 Cent's lawyers say improperly negotiated deals on his behalf, including one for a reality show with E! Entertainment. 50 Cent is also seeking an accounting from Jameson of any other deals, the report related. Curtis James Jackson, III, aka 50 Cent, filed for Chapter 11 bankruptcy protection (Bankr. D. Conn. Case No. 15-21233) on July 13, 2015. DASEKE INC: S&P Withdraws 'B+' Corporate Credit Rating ------------------------------------------------------ Standard & Poor's Ratings Services said that it has withdrawn all of its ratings on Daseke Inc., including S&P's 'B+' corporate credit rating, at the issuer's request. At the same time, S&P withdrew its 'B+' issue-level rating on the company's previously proposed senior secured term loan B. Daseke had previously announced that it was planning to issue a new $250 million senior secured term loan B to refinance its debt and partially finance future acquisitions, however, the company has decided not to pursue the transaction. DVORKIN HOLDINGS: FirstMerit Wants Stay of Payouts Further Extended ------------------------------------------------------------------- FirstMerit Bank, N.A., asks the U.S. Bankruptcy Court for the Northern District of Illinois, Eastern Division, for an extension of the limited stay until Sept. 25, 2015 of the distributions to equity holders pursuant to the debtor Dvorkin Holdings' confirmed plan. FirstMerit filed its Emergency Motion for Limited Stay Pending Appeal, wherein it requested entry of an order staying any distributions to or retention of assets by Equity Interest Holders Under the Joint Amended Chapter 11 Plan of Reorganization until adjudication of its appeal of the Court's Order Confirming the Chapter 11 Plan. The joint amended Chapter 11 plan was filed by the Chapter 11 Trustee of the Debtor's estate and Francine Dvorkin, Beverly Dvorkin and/or Aaron Dvorkin (collectively, the "Equity Interest Holders"). Before the Stay Motion could be heard, FirstMerit reached an agreement with the Chapter 11 Trustee and the Equity Interest Holders as to an agreed order granting the Stay Motion on an interim basis to facilitate settlement discussions among the parties. On July 2, 2015, Judge Eugene R. Wedoff entered an Order granting the Stay Motion on an interim basis for 45 days (the "First Agreed Stay Order"). Following the First Agreed Stay Order, the parties continued settlement discussions and again reached an agreement with the Chapter 11 Trustee and the Equity Interest Holders as to an agreed order further granting the Stay Motion through and until the next status conference. The parties agreed in their Agreed Order, as submitted to the Court, that the Stay Motion would be granted on an interim basis until Sept. 16, 2015, and that a status conference would be held on the same Sept. 16, 2015 date. On Sept. 3, 2015 the Court entered an Order granting the Stay Motion on an additional interim basis (the "Second Agreed Stay Order"). Forrest B. Lammiman, Esq., at Meltzer, Purtill & Stelle LLC, in Chicago, Illinois, relates that in entering the parties' agreed order, the Court changed the Second Agreed Stay Order to reflect the next status conference before Judge Cox as being September 17, 2015, but inadvertently did not change the Order to reflect an extension of the stay through the same date. Instead, he further relates, the stay was extended only through Sept. 16, 2015. Mr. Lammiman tells the Court that because the parties' settlement discussions continue, and FirstMerit hopes to reach a final resolution in the coming days, FirstMerit seeks the entry of an order to further extend the Second Agreed Stay Order until and including Sept. 25, 2015. FirstMerit Bank is represented by: Forrest B. Lammiman, Esq. Steven R. Rogovin, Esq. MELTZER, PURTILL & STELLE LLC 300 South Wacker Drive, Suite 2300 Chicago, IL 60606 Telephone: (312)987-9900 Facsimile: (312)987-9854 E-mail: flammiman@mpslaw.com srogovin@mpslaw.com About Dvorkin Holdings Dvorkin Holdings, LLC, is a real estate holding company that possesses or possessed ownership interests in 70 real properties, either directly or indirectly through limited liability companies or land trusts. Dvorkin Holdings has interests in 40 non-debtor entities. Dvorkin Holdings filed a Chapter 11 petition (Bankr. N.D. Ill. Case No. 12-31336) in Chicago on Aug. 7, 2012. The Debtor disclosed $69.9 million in assets and $9.30 million in liabilities as of the Chapter 11 filing. Michael J. Davis, Esq., at Archer Bay, P.A., in Lisle, Ill., serves as counsel to the Debtor. The petition was signed by Loran Eatman, vice president of DH-EK Management Corp. The Bankruptcy Court in October 2012 granted the request of Patrick S. Layng, the U.S. Trustee for the Northern District of Illinois, to appoint Gus Paloian as the Chapter 11 Trustee. Seyfarth Shaw, LLP, represents the Chapter 11 Trustee as counsel. Carpenter Lipps & Leland LLP represents the Chapter 11 Trustee as conflicts counsel. On March 16, 2015, the Clerk of the Court reassigned the case to U.S. Bankruptcy Judge Jacqueline P. Cox. EAGLE INC: Case Summary & 20 Largest Unsecured Creditors -------------------------------------------------------- Debtor: Eagle, Inc. 1100 Poydras Street, Suite 2900 PMB 117 New Orleans, LA 70163 Case No.: 15-12437 Type of Business: Eagle's business primarily consisted of the sale of gaskets and the sale and installation of insulation and insulation-related products, many of which contained asbestos. Chapter 11 Petition Date: September 22, 2015 Court: United States Bankruptcy Court Eastern District of Louisiana (New Orleans) Judge: Hon. Jerry A. Brown Debtor's James L. Patton, Esq. Bankruptcy Edwin J. Harron, Esq. Counsel: YOUNG CONAWAY STARGATT & TAYLOR, LLP Rodney Square 1000 North King Street Wilmington, DE 19801 Tel: (302) 571-6600 Email: jpatton@ycst.com eharron@ycst.com Debtor's Local Stephen H. Kupperman, Esq. Counsel: BARRASSO USDIN KUPPERMAN FREEMAN & SARVER, LLC 909 Poydras Street, Suite 2400 New Orleans, LA 70112 Tel: (504) 589-9700 Fax: (504) 589-9701 Email: skupperman@barrassousdin.com Debtor's EPIQ BANKRUPTCY SOLUTIONS Claims, Noticing and Balloting Agent: Estimated Assets: $10 million to $50 million Estimated Debts: $10 million to $50 million The petition was signed by Raymond P. Tellini, president. List of Debtor's 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Baron & Budd, P.C. Asbestos Personal Unliquidated injury Murray Law Firm Asbestos Personal Unliquidated injury Deakle Law Firm Asbestos Personal Unliquidated injury Scruggs, Millette, Lawson Asbestos Personal Unliquidated Bozeman & Dent, P.A. injury Campbell, Cherry, Harrison, Asbestos Personal Unliquidated Davis, & Dove injury Motley Rice, LLC Asbestos Personal Unliquidated injury Jon. A. Swartzfager Asbestos Personal Unliquidated injury Brent Coon & Associates Asbestos Personal Unliquidated injury Blackwell & Associates Asbestos Personal Unliquidated injury Scott C. Taylor, P.A. Asbestos Personal Unliquidated injury F. Gerald Maples, P.A. Asbestos Personal Unliquidated injury Bruscato, Tramontana & Asbestos Personal Unliquidated Wolleson injury R.G. Taylor, II, P.C. & Asbestos Personal Unliquidated Associates injury Shannon & Munn, PLLC Asbestos Personal Unliquidated injury LeBlanc and Waddell LLC Asbestos Personal Unliquidated injury Maples & Lomax, P.A. Asbestos Personal Unliquidated injury Lundy & Davis Asbestos Personal Unliquidated injury John F. Dillon PLC Asbestos Personal Unliquidated injury David O. McCormick Asbestos Personal Unliquidated injury Murray & Wilson Asbestos Personal Unliquidated injury EAGLE INC: Files for Bankruptcy Amid Asbestos-Related Lawsuits -------------------------------------------------------------- Eagle Inc. filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Eastern District of Louisiana (Bankr. E.D. La. Case No. 15-12437) on Sept. 22, 2015, with a goal of confirming a plan of reorganization which, pursuant to Section 542(g) of the Bankruptcy Code, implements a channeling injunction and trust to resolve its liability for asbestos-related claims. The case is assigned to Judge Jerry A. Brown. Eagle estimated assets and liabilities in the range of $10 million to $50 million. Founded in 1920, Eagle's business primarily consisted of the sale of gaskets and the sale and installation of insulation and insulation-related products, many of which contained asbestos. Eagle discontinued the distribution and sale of asbestos-containing products in the late 1970s and ceased all operations in 2006 other than the management of asbestos litigation and insurance rights. According to Eagle's President Raymond Tellini, there are nearly 20,000 pending lawsuits against Eagle alleging asbestos-related injuries. Beginning in 1985 and continuing to the present, Eagle has been presented with numerous claims by persons alleging bodily injury, including disease, disability, and death, as a result of their respective exposures to asbestos-containing materials allegedly distributed, handled, installed, or sold by Eagle. In light of the mounting claims filed against Eagle, on or about Jan. 1, 1996, Eagle and four of its insurers, United States Fidelity & Guaranty Company, Commercial Union Insurance Company, National Union Fire Insurance Company of Pittsburgh, Pennsylvania, and International Surplus Lines Insurance Company, entered into a defense agreement that established certain percentages that each of the four insurers were to pay to defend claims made against Eagle and to pay settlements of and judgments arising from those claims. From 1996 to 2002, numerous claims were defended and resolved in accordance with the Defense Agreement. However, in 2002, Commercial Union withdrew from the Defense Agreement leading to its eventual termination after the remaining parties were unable to re-negotiate its terms. Between 2003 and 2007, Eagle ultimately entered into settlement agreements with (i) Commercial Union, American Employers Insurance Company, and OneBeacon America Insurance Company, (ii) National Union, and (iii) USF&G. On Sept. 5, 2013, Eagle entered into a coverage settlement agreement with Fireman's Fund Insurance Company, American Automobile Insurance Company, American Insurance Company, and Associated Indemnity Company. On Aug. 4, 2015, Eagle entered into a coverage settlement agreement with First State Insurance Company and Hartford Financial Services Group, Inc. Fireman's Fund Settlement and First State Settlement are referred to as Bankruptcy-Related Settlement Agreements. The proceeds from the Bankruptcy-Related Settlement Agreements and Eagle's remaining rights to insurance coverage will provide funding for the Chapter 11 process and the Section 524(g) trust. The Bankruptcy-Related Settlement Agreements require: (i) Eagle to use its best efforts to obtain an injunction pursuant to Section 105 of the Bankruptcy Code to protect Fireman's Fund and First State from third party asbestos- related claims asserted against Fireman's Fund and First State while the Chapter 11 case is pending; and (ii) entry of a final order confirming an Eagle plan of reorganization that, pursuant to Section 524(g), provides for the implementation of a channeling injunction protecting Eagle, Fireman's Fund, First State and other settling insurers from asbestos-related suits and claims and establishes a trust to resolve those suits and claims. Eagle is in ongoing coverage litigation in the United States District Court for the Eastern District of Luisiana, Case No. 2:13-cv-06217-JCZ-MBN, with OneBeacon, Stonewall Insurance Company, Houston General Insurance Company, Pacific Employers Insurance Company, Allied World Assurance Company (U.S.) Inc., Excess Insurance Co. Ltd., Portman Insurance Limited (AXA S.A.), Prudential Assurance Co. Ltd, Royal & Sun Alliance PLC, Ageas Insurance Limited, Riverstone Insurance (UK) Limited, Continental Insurance Company, Yorkshire Ins. Co. Ltd. "L" A/C, Tenecom Ltd., and Skandia UK Insurance Co. Ltd. "T" A/C, among others. Eagle is in active settlement negotiaions with the Coverage Litigation Parties. First Day Pleadings To enable to the Debtor to operate effectively in its Chapter 11 Case, the Debtor filed with the Court first day motions and applications to: -- employ Young Conaway Stargatt & Taylor, LLP as bankruptcy counsel; -- employ Barrasso Usdin Kupperman Freeman & Sarver, LLC as local bankruptcy counsel; -- appoint Epiq Bankruptcy Solutions, as claims, noticing and balloting agent; and -- employ and pay compensation to insider. A copy of the declaration in support of the First Day Motion is available for free at: http://bankrupt.com/misc/2_EAGLE_Affidavit.pdf ELITE PRECISION: General Dynamics Wants Fraud Suits Consolidated ---------------------------------------------------------------- Y. Peter Kang at Bankruptcy Law360 reported that General Dynamics Land Systems Inc. urged a Texas federal judge to consolidate twin fraud suits brought by Elite Precision Fabricators Inc., a bankrupt metal fabrication shop, accusing the defense contractor of not paying for $3.7 million worth of parts, saying the other suit could endanger its pending bid to compel arbitration. GDLS said it filed the emergency motion because it is concerned that Elite Precision will argue in a parallel adversary proceeding in Texas bankruptcy court that GDLS has lost its rights to compel arbitration. Earlier, Bryan Koenig at Bankruptcy Law360 reported that General Dynamics continued to fight in Texas federal court to toss Elite Precision's $3.7 million fraud suit, arguing the former Israeli tank project subcontractor is trying to "rewrite" the case's procedural history. Elite Precision has been trying to keep the case out of arbitration, blasting the validity of an arbitration agreement between the companies by arguing its existence was not obvious in GDLS's first purchase order in June 2011. Earlier this month, Law360's Mr. Koenig reported that Elite Precision resisted General Dynamics' dismissal bid, arguing that it's questionable that a valid arbitration agreement exists to resolve the fraud suit. Elite Precision contends the General Dynamics division breached the parties' contract to build Israeli military tanks. According to Elite Precision, the arbitration agreement was not obvious in GDLS's purchase orders, and GDLS has yet to show proof that there was an arbitration clause in place in the first purchase order. Montgomery, Texas-based Elite Precision Fabricators sought protection under Chapter 11 of the Bankruptcy on March 31, 2014 (Case No. 14-31773, Bankr. S.D. Tex.). The case is assigned to Judge Karen K. Brown. The Debtor's counsel is James B. Jameson, Esq., Attorney at Law, in Houston, Texas. The Debtor estimated assets of $5.43 million and estimated liabilities of $6.41 million in its petition. FIELDWOOD ENERGY: Moody's Lowers CFR to B2, Outlook Negative ------------------------------------------------------------ Moody's Investors Service downgraded Fieldwood Energy LLC's Corporate Family Rating to B2 from B1, Probability of Default Rating (PDR) to B2-PD from B1-PD, and second-lien senior secured term loan rating to B3 from B2. At the same time Moody's affirmed the Ba2 rating on Fieldwood's first-lien senior secured term loan, and changed the company's rating outlook to negative from stable. Moody's also changed Fieldwood's Speculative Grade Liquidity Rating to SGL-3 from SGL-2 reflecting adequate liquidity. "The downgrades reflect our view that Fieldwood will have significantly weaker margins and cash flows and higher leverage through 2016," said Sajjad Alam, Moody's Analyst. "While the company has significantly reduced capital expenditures to cope with current low oil prices, we believe underinvestment over an extended period could lead to a meaningful decline in Fieldwood's production and reserves in future years. The company will also face elevated refinancing risk in a sustained low commodity price environment." Issuer: Fieldwood Energy LLC Ratings Downgraded: Corporate Family Rating, Downgraded to B2 from B1 Probability of Default Rating, Downgraded to B2-PD from B1-PD Second Lien Senior Secured Term Loan, Downgraded to B3 (LGD5) from B2 (LGD5) Ratings Affirmed: First Lien Senior Secured Term Loan, Affirmed Ba2 (LGD2) Ratings Changed: Speculative Grade Liquidity Rating, Changed to SGL-3 from SGL-2 Outlook Actions: Outlook, Changed to Negative from Stable RATINGS RATIONALE Fieldwood's B2 CFR is supported by its large and oil-weighted (~60% liquids) shallow water production portfolio in the US Gulf of Mexico, high proportion of proved developed (PD) and behind-pipe reserves that can be tapped at low costs, and routine practice of hedging a significant portion of its future production. Fieldwood's ratings are restrained by its increasing leverage and declining margins driven by low oil prices, large debt-like plugging & abandonment (P&A) obligations that impose heavy ongoing cash expenditures, concentration in a single offshore basin with a short reserve life and significant reinvestment requirements. The B2 CFR also reflects the company's private ownership, short operating history and limited operational and financial disclosures. The SGL-3 rating reflects Moody's expectation of adequate liquidity through 2016. The company has successfully managed its capex and P&A expenditures with internally generated cash flow so far in this downturn, and it plans to maintain the same strategy for as long as commodity prices remain depressed. Fieldwood had $173 million cash on hand at June 30, 2015. Despite only $19 million of availability under its revolving credit facility at the end of second quarter 2015, the company is looking to arrange for surety bonds to free up revolver capacity associated with letters of credit that are posted against P&A obligations. The revolver borrowing base was reduced to $1.75 billion in April 2015 and there is risk that low oil prices could lead to a further reduction in the October redetermination. Both the $863 million revolver and the $887 million first-lien term loan mature in September 2018. As a result, the company will face heightened refinancing risk if oil and natural gas prices do not increase meaningfully from today's levels. Moody's expects Fieldwood to remain in compliance with its financial covenants under the credit facilities through mid-2016 after it successfully amended the leverage (total debt to EBITDAX) covenant requirement to 4.5x earlier in the year. The company's alternate liquidity is limited given all of its assets are encumbered by its secured credit facilities; however, Fieldwood has $250 million of undrawn equity from its PE sponsors. The first-lien term loan is rated Ba2, three notches above the CFR, because it has a priority claim to Fieldwood's substantial asset base (and ranks pari passu with the revolving credit facility) and the significant loss absorption cushion afforded by the large second lien facility. The $2.1 billion second-lien term loan is rated one notch below the CFR because of its junior claim in a potential default situation behind the combined $1.75 billion first-lien revolver and term loan facilities. The negative outlook reflects the risk of further erosion in Fieldwood's credit metrics including liquidity in a potentially prolonged downturn. The CFR could be downgraded if the EBITDAX to Interest coverage ratio approaches 2.5x or the RCF/Debt ratio falls below 10%. Weak liquidity or any leveraging transaction could also trigger a downgrade. An upgrade is unlikely through 2016. If Fieldwood could sustain the debt to average daily production ratio below $28,000 per boe and the RCF/Debt ratio near 35%, we could consider an upgrade. Moody's would also look for stable industry conditions prior to a positive rating action. The principal methodology used in these ratings was the Global Independent Exploration and Production Industry published in December 2011. Fieldwood Energy LLC is a Houston, Texas based private oil and gas exploration and production company with primary producing assets on the US Gulf of Mexico shelf. FLINTKOTE COMPANY: Time to Remove Suits Extended to Oct. 31 ----------------------------------------------------------- U.S. Bankruptcy Judge Mary Walrath has given The Flintkote Co. and Flintkote Mines Limited until Oct. 31, 2015, to file notices of removal of lawsuits involving the companies. About The Flintkote Company Headquartered in San Francisco, California, The Flintkote Company is engaged in the business of manufacturing, processing and distributing building materials. Flintkote Mines Limited is a subsidiary of Flintkote Company and is engaged in the mining of base-precious metals. The Flintkote Company filed for Chapter 11 protection (Bankr. D. Del. Case No. 04-11300) on April 30, 2004. Flintkote Mines Limited filed for Chapter 11 relief (Bankr. D. Del. Case No. 04-12440) on Aug. 25, 2004. Kevin T. Lantry, Esq., Jeffrey E. Bjork, Esq., Dennis M. Twomey, Esq., Jeremy E. Rosenthal, Esq., and Christina M. Craige, Esq., at Sidley Austin, LLP, in Los Angeles; James E. O'Neill, Esq., and Laura Davis Jones, Esq., at Pachulski Stang Ziehl & Jones LLP, in Wilmington, Del., represent the Debtors in their restructuring efforts. Elihu Inselbuch, Esq., at Caplin & Drysdale, Chartered, in New York, N.Y.; Peter Van N. Lockwood, Esq., Ronald E. Reinsel, Esq., at Caplin & Drysdale, Chartered, in Washington, D.C.; and Philip E. Milch, Esq., at Campbell & Levine, LLC, in Wilmington, Del., represent the Asbestos Claimants Committee as counsel. James J. McMonagle, is the legal representative for future claimants. The FCR has retained Dr. Timothy Wyant as claims evaluation consultant. The FCR is represented by James L. Patton, Jr., Esq., and Edwin J. Harron, Esq., at Young Conaway Stargatt & Taylor, LLP; and Reginald W. Jackson, Esq., at Vorys, Sater, Seymour & Pease LLP. When Flintkote filed for protection from its creditors, it estimated more than $100 million each in assets and debts. When Flintkote Mines Limited filed for protection from its creditors, it estimated assets of $1 million to $50 million, and debts of more than $100 million. The Debtors' Chapter 11 cases have been re-assigned to Judge Mary F. Walrath in line with the retirement of former Bankruptcy Judge Judith Fitzgerald. FOREST PARK MEDICAL: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------------ Debtor: Forest Park Medical Center at Frisco, LLC aka FPMC Frisco aka Forest Park Medical Center Frisco 5500 Frisco Square Blvd. Frisco, TX 75034 Case No.: 15-41684 Type of Business: Health Care Chapter 11 Petition Date: September 22, 2015 Court: United States Bankruptcy Court Eastern District of Texas (Sherman) Judge: Hon. Brenda T. Rhoades Debtor's Counsel: William L. Medford, Esq. LEWIS BRISBOIS BISGAARD & SMITH LLP 2100 Ross Ave., Suite 2000 Dallas, TX 75201 Tel: 214-722-7100 Fax: 214-722-7111 Email: William.Medford@lewisbrisbois.com Estimated Assets: $10 million to $50 million Estimated Debts: $10 million to $50 million The petition was signed by Michael Miller, chief restructuring officer. List of Debtor's 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Sabra Texas Holdings, L.P. Landlord $8,517,302 c/o Deirdre B. Ruckman Marcus Helt Gardere 3000 Thanksgiving Tower 1601 Elm St. Dallas, TX 75201 Vibrant Management Vendor $866,255 c/o glendonTodd LLC 2101 Cedar Springs, Suite 1540 Dallas, TX 75201 Intuitive Surgical Vendor $596,964 P.O. Box 39000 San Francisco, CA 94139 CPM Medical LLC Vendor $519,294 1565 N. Central Expwy Suite 200 Richardson, TX 75080 Valley Services, Inc. Vendor $260,116 P.O. Box 742992 Atlanta, GA 30374-2992 Medline Vendor $195,254 Lifecell Corporation Vendor $177,099 Identity Media Services, LLC Vendor $168,806 Johnson and Johnson Healthcare Vendor $166,384 LDR Spine USA Inc. Vendor $162,668 Bell Nunnally and Martin, LLC Vendor $141,850 Stryker Instruments Vendor $139,883 Stryker Endoscopy Vendor $133,290 Pro Silver Star Ltd. Vendor $131,888 Inpatient Physician Assoc PLLC Vendor $130,000 Ricoh USA Inc. Vendor $125,430 Medical Information Technology Vendor $120,862 Inc. Smith and Nephew Inc. Vendor $100,560 Siemens Medical Solutions USA, Inc. Vendor $98,376 Allergen USA Inc. Vendor $96,417 FOREST PARK MEDICAL: Files for Chapter 11 Due to Declining Revenues ------------------------------------------------------------------- Forest Park Medical Center at Frisco, LLC, owner and operator of a luxury hospital located at 5500 Frisco Square Boulevard in Frisco, Texas, has filed for Chapter 11 bankruptcy protection, saying it will use the Chapter 11 process to evaluate whether a plan of reorganization or a sale of the its assets will provide for the most recovery to its creditors. As disclosed in a Court filing, an "out-of-network" business model did not provide the Debtor sufficient level of revenue to sustain its operations. In an attempt to boost revenues, the Debtor attempted enter into "in network" contracts with various insurance providers, however, reduced rates eventually caused a further reduction in the Debtor's earnings. Based upon a trailing three months ending in July 2015, the Debtor generates approximately $3.4 million a month in revenue, and has operational expenses of approximately $4.3 million a month. Texas Capital Bank, the Debtor's current secured lender, refused to renew nor provide further extensions to the Debtor's $2.5 million line of credit past its maturity. The Hospital owed a total of $6 million to TCB as of the Petition Date. The Debtor said it was unable to obtain alternative financing due to, among other things, a pending vendor lawsuit and a landlord's declaration of default due to approximately $7 million in unpaid rental obligations. To address exigent financial and operational issues, the Debtor retained Deloitte on Sept. 11, 2015, to assist in, among other things, creating short-term budgets, negotiating appropriate waivers and forbearances, and assessing the Debtor's available assets and options. "In order to maintain quality patient care and to preserve the value of its business to the fullest extent possible, the Debtor's immediate objective is to maintain "business as usual" following the commencement of this Case by minimizing the adverse impact of the filing on the Debtor's assets and operations and their ability to care for patients," says Michael Miller, chief restructuring officer. Contemporaneously with the petition, the Debtor filed certain "first-day" applications and motions seeking authority to: (a) obtain approval for immediate debtor-in-possession financing necessary for the continued operation of the hospital and care of its patients; (b) appoint an independent chief restructuring officer; (c) pay FPMC Services, LLC the needed amounts to satisfy wages and benefits owed to the individuals working at the Hospital and in their business office providing services to the Debtor but employed and paid by Shared Services; (d) maintain, on a limited basis, a pre-petition cash management systems needed to prevent disruption of critical payments from insurers; and (e) provide proper patient privacy in connection with the various filings and disclosures required by the Bankruptcy Code and associated rules. Sabra Texas Holdings, L.P., the Debtor's landlord, offered to provide debtor-in-possession financing in the approximate amount of $18,500,000 available in draws and accruing interest at a 5% interest rate, payable monthly in arrears. The Debtor is owned by 86 doctors, each owning different numbers of membership units in one of four classes. The Debtor has approximately 159 employees. A copy of the declaration in support of the First Day Motions is available for free at: http://bankrupt.com/misc/3_FOREST_Affidavit.pdf Forest Park Medical Center at Frisco, LLC filed Chapter 11 bankruptcy petition (Bankr. E.D. Tex. Case No. 15-41684) on Sept. 22, 2015. The petition was signed by Michael Miller as chief restructuring officer. The Debtor estimated assets and liabilities in the range of $10 million to $50 million. Hon. Brenda T. Rhoades is assigned to the case. Lewis Brisbois Bisgaard & Smith LLP represents the Debtor as counsel. FREDERICK'S OF HOLLYWOOD: Has Until Dec. 15 to File Ch. 11 Plan --------------------------------------------------------------- Peter Hall at Bankruptcy Law360 reported that a Delaware bankruptcy judge granted Frederick's of Hollywood Inc. exclusive control over its Chapter 11 case until February, giving the estate time to reach a settlement with its last remaining secured creditor. U.S. Bankruptcy Judge Kevin Gross signed an order extending the California-based women's apparel chain time to file a Chapter 11 plan until Dec. 15 and its time to solicit creditors until Feb. 15. Women's apparel retailer Frederick's of Hollywood, Inc., also known as Movie Star, Inc., aka Fredricks.com Inc., and its affiliates filed for Chapter 11 protection (Bankr. D. Del. Case No. 15-10836) on April 19, 2015. The petition was signed by William Soncini, chief operating officer. The Debtors are represented by Russell C. Silberglied, Esq., and Zachary I. Shapiro, Esq., at Richards, Layton & Finger, P.A., and Tyson M. Lomazow, Esq., Matthew Brod, Esq., at Milbank, Tweed, Hadley & McCloy LLP. Kurtzman Carson Consultants, LLC, serves as the Debtors' claims, notice and balloting agent. The Debtors, in their petition, disclosed total assets of $36.5 million and total liabilities of $106 million. FULLBEAUTY BRANDS: S&P Lowers CCR to 'B-', Outlook Stable --------------------------------------------------------- Standard & Poor's Ratings Services lowered its corporate credit rating on New York-based FULLBEAUTY Brands Inc. (FBB) 'B-' from 'B'. The outlook is stable. At the same time, S&P assigned its 'B-' issue-level rating and '3' recovery rating to FULLBEAUTY Brands Holdings Corp.'s proposed $820 million senior secured first-lien term loan due 2022. The '3' recovery rating indicates S&P's expectation for meaningful recovery (lower end of the 50%-70% range) in a payment default scenario. S&P also assigned its 'CCC' issue-level rating and '6' recovery rating to FULLBEAUTY Brands Holdings Corp.'s proposed $345 million senior secured second-lien term loan due 2023. The '6' recovery rating indicates S&P's expectation for negligible recovery (0%-10%) in a payment default scenario. "The downgrade reflects the sizable debt burden and highly leveraged financial profile following the buyout by Apax Partners," said Standard & Poor's credit analyst Anita Ogbara. "Pro forma for the transaction, we expect FBB's ratio of debt to EBITDA to be in excess of 7.0x, funds from operations to debt in the 8% area, and EBITDA interest coverage in the mid-3x area. Still, over the next 18 months S&P expects the company to continue to improve EBITDA margins, generate good cash flow, and reduce debt, which should result in debt to EBITDA in the 6.0x-6.5x area and FFO to debt in the high-single digits percent area." Standard & Poor's ratings on FBB reflect its relatively small size in the highly fragmented and competitive plus-size apparel industry, good geographic diversity operating as a direct-to-consumer retailer, unique merchandise selection, and exposure to commodity cost volatility. FBB operates as an online platform and print media marketer encompassing six proprietary brands, with merchandise primarily aimed at plus-size individuals. Competition remains intense from other participants, such as mass merchants, department stores, and other specialty apparel retailers, which have been expanding their plus-size merchandise offerings in recent years. However, FBB continues to take market share from competitors partially because of its strong merchandise offerings and emphasis on fit, particularly in extended plus-size products. The stable outlook on FBB reflects Standard & Poor's expectation that credit protection measures will gradually improve over the next 12 months following its leveraged buy-out by Apax Partners. GARLOCK SEALING: Belluck & Fox Must Face Subpoenas -------------------------------------------------- Dani Meyer at Bankruptcy Law360 reported that Belluck & Fox LLP can't block defunct Garlock Sealing Technologies LLC from subpoenaing information in its adversary suit, a North Carolina federal judge ruled, saying the discovery into allegations that the firm schemed to drive up settlement values in asbestos litigation is necessary. U.S. District Judge Graham C. Mullen acknowledged that Garlock's subpoenas seeking documents from bankruptcy trusts and claims processing facilities involved in the massive mesothelioma litigation against the gasket company will be expensive for the firm. About Garlock Sealing Headquartered in Palmyra, New York, Garlock Sealing Technologies LLC is a unit of EnPro Industries, Inc. (NYSE: NPO). For more than a century, Garlock has been helping customers efficiently seal the toughest process fluids in the most demanding applications. On June 5, 2010, Garlock filed a voluntary Chapter 11 petition (Bankr. W.D.N.C. Case No. 10-31607) in Charlotte, North Carolina, to establish a trust to resolve all current and future asbestos claims against Garlock under Section 524(g) of the U.S. Bankruptcy Code. The Debtor estimated $500 million to $1 billion in assets and up to $500 million in debts as of the Petition Date. Affiliates The Anchor Packing Company and Garrison Litigation Management Group, Ltd., also filed for bankruptcy. Albert F. Durham, Esq., at Rayburn Cooper & Durham, P.A., represents the Debtor in their Chapter 11 effort. Garland S. Cassada, Esq., at Robinson Bradshaw & Hinson, serves as counsel for asbestos matters. The Official Committee of Asbestos Personal Injury Claimants in the Chapter 11 cases is represented by Travis W. Moon, Esq., at Hamilton Moon Stephens Steele & Martin, PLLC, in Charlotte, NC, Elihu Inselbuch, Esq., at Caplin & Drysdale, Chartered, in New York, and Trevor W. Swett III, Esq., Leslie M. Kelleher, Esq., and Jeanna Rickards Koski, Esq., in Washington, D.C. 20005. Joseph W. Grier, III, the Court-appointed legal representative for future asbestos claimants, has retained A. Cotten Wright, Esq., at Grier Furr & Crisp, PA, and Richard H. Wyron, Esq., and Jonathan P. Guy, Esq., at Orrick, Herrington & Sutcliffe LLP, as his co-counsel. Judge George Hodges of the United States Bankruptcy Court for the Western District of North Carolina on Jan. 10, 2014, entered an order estimating the liability for present and future mesothelioma claims against Garlock Sealing at $125 million, consistent with the positions GST put forth at trial. GELTECH SOLUTIONS: Reports $5.51 Million Net Loss for Fiscal 2015 ----------------------------------------------------------------- GelTech Solutions, Inc., filed with the Securities and Exchange Commission its annual report on Form 10-K disclosing a net loss of $5.51 million on $800,000 of sales for the year ended June 30, 2015, compared to a net loss of $7.11 million on $815,000 of sales for the year ended June 30, 2014. As of June 30, 2015, the Company had $1.69 million in total assets, $5.24 million in total liabilities and a $3.55 million in total stockholders' deficit. Salberg & Company, P.A., in Boca Raton, Florida, issued a "going concern" qualification on the consolidated financial statements for the year ended June 30, 2015, citing that the Company has a net loss and net cash used in operating activities in 2015 of $5.51 million and $3.66 million, respectively and has an accumulated deficit and stockholders' deficit of $40,647,303 and $3,550,528, respectively, at June 30, 2015. These matters raise substantial doubt about the Company's ability to continue as a going concern. A full-text copy of the Form 10-K is available for free at: http://is.gd/eT2MU6 About GelTech Jupiter, Fla.-based GelTech Solutions. Inc., is a Delaware corporation organized in 2006. The Company markets four products: (1) FireIce(R), a water soluble fire retardant used to protect firefighters, structures and wildlands; (2) Soil2O(R) 'Dust Control', its new application which is used for dust mitigation in the aggregate, road construction, mining, as well as, other industries that deal with daily dust control issues; (3) Soil2O(R), a product which reduces the use of water and is primarily marketed to golf courses, commercial landscapers and the agriculture market; and (4) FireIce(R) Home Defense Unit, a system for applying FireIce(R) to structures to protect them from wildfires. GENERAL MOTORS: Ignition Switch Plaintiffs Defend Damages Claims ---------------------------------------------------------------- Jonathan Randles at Bankruptcy Law360 reported that plaintiffs suing General Motors LLC over injuries suffered from the automaker's ignition switch defect defended on Sept. 22, 2015, their quest for punitive damages against the post-bankruptcy iteration of the company, saying GM knew about the defect after emerging from Chapter 11 in 2009 but waited years to conduct a recall. Goodwin Proctor LLP attorneys who are representing ignition switch accident plaintiffs challenging GM's assertion that the sale that allowed the automaker to leave bankruptcy shields the company from punitive damages. In another report, Joe Van Acker at Bankruptcy Law360 reported that a New York federal judge said on Sept. 21, that he'd leave it up to the U.S. bankruptcy court to decide whether Arizona, California and multidistrict litigation plaintiffs can seek damages from post-bankruptcy New GM, over an ignition switch defect affecting millions of vehicles. U.S. District Judge Jesse M. Furman denied the plaintiffs' motions to withdraw the reference, leaving untouched an order by U.S. Bankruptcy Judge Robert Gerber that established procedures to determine whether certain claims against New GM are barred under a sale. About Motors Liquidation General Motors Corporation and three of its affiliates filed for Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 09-50026) on June 1, 2009. The Honorable Robert E. Gerber presides over the Chapter 11 cases. Harvey R. Miller, Esq., Stephen Karotkin, Esq., and Joseph H. Smolinsky, Esq., at Weil, Gotshal & Manges LLP, assist the Debtors in their restructuring efforts. Al Koch at AP Services, LLC, an affiliate of AlixPartners, LLP, serves as the Chief Executive Officer for Motors Liquidation Company. GM is also represented by Jenner & Block LLP and Honigman Miller Schwartz and Cohn LLP as counsel. Cravath, Swaine, & Moore LLP is providing legal advice to the GM Board of Directors. GM's financial advisors are Morgan Stanley, Evercore Partners and the Blackstone Group LLP. Garden City Group is the claims and notice agent of the Debtors. The U.S. Trustee appointed an Official Committee of Unsecured Creditors and a separate Official Committee of Unsecured Creditors Holding Asbestos-Related Claims. Lawyers at Kramer Levin Naftalis & Frankel LLP served as bankruptcy counsel to the Creditors Committee. Attorneys at Butzel Long served as counsel on supplier contract matters. FTI Consulting Inc. served as financial advisors to the Creditors Committee. Elihu Inselbuch, Esq., at Caplin & Drysdale, Chartered, represented the Asbestos Committee. Legal Analysis Systems, Inc., served as asbestos valuation analyst. The Bankruptcy Court entered an order confirming the Debtors' Second Amended Joint Chapter 11 Plan on March 29, 2011. The Plan was declared effect on March 31. On Dec. 15, 2011, Motors Liquidation Company was dissolved. On the Dissolution Date, pursuant to the Plan and the Motors Liquidation Company GUC Trust Agreement, dated March 30, 2011, between the parties thereto, the trust administrator and trustee -- GUC Trust Administrator -- of the Motors Liquidation Company GUC Trust, assumed responsibility for the affairs of and certain claims against MLC and its debtor subsidiaries that were not concluded prior to the Dissolution Date. As of March 31, 2015, Motors Liquidation had $1.01 billion in total assets, $69.2 million in total liabilities and $945 million in net assets in liquidation. GENERAL SHOPPING: Moody's Lowers Sr. Unsecured Debt Rating to 'B2' ------------------------------------------------------------------ Moody's Investors Service downgraded the senior unsecured ratings of General Shopping Finance Limited to B2 from B1 and the subordinated debt rating of General Shopping Investments Limited to Caa1 from B3. The rating outlook was revised to negative from stable. RATINGS RATIONALE The downgrade reflects General Shopping's strained liquidity position in light of its recently announced capital structure management strategy, which includes, but is not limited to: a) a deferral of interest payments on the 12% subordinated, US dollar denominated perpetual bonds; b) a tender offer for a portion of its 10% senior unsecured, US dollar denominated perpetual bonds to investors outside of Brazil; c) a common equity issuance to investors in Brazil and d) potential asset sales in the future. General Shopping's credit metrics have weakened due to a heavy debt load and higher financing expenses. Additionally, there is uncertainty regarding the company's future financial flexibility and earnings power to address the accrual of deferred interest. The negative outlook reflects Moody's expectation that the company's liquidity position and credit metrics will remain under pressure in the short-term as it opportunistically implements its strategic initiatives, exacerbated by both the current political and macroeconomic challenges in Brazil and a weakening retail sector. The B2 rating reflects the company's current credit metrics and portfolio quality. As of 2Q15, Debt + Preferred Equity as a percentage of Gross Assets, and its Net debt/EBITDA were 54% and 8.5X, respectively. Fixed charge coverage, has weakened to 1.0X or below for several consecutive quarters, eroding any cushion against unexpected EBITDA declines or increases in interest expenses. Positively, General Shopping owns and operates a good quality and resilient portfolio that has consistently maintained high occupancy and has generated solid EBITDA margins. The company has a proven track record as an owner, developer and operator of shopping centers with a strong presence in the state of Sao Paolo. Although an upward rating movement is unlikely in the near term, it would be predicated upon General Shopping maintaining a fixed charge coverage closer to 1.5X, effective leverage below 50% (excluding the effect of foreign exchange fluctuations); Net debt to EBITDA below 7.0X, and secured debt levels below 20% (as a percentage of gross assets) on a consistent basis. A stabilization of the rating outlook would also require more clarity on the company's liquidity position to address the accrual of deferred interest as well as the outcome of the tender offer and equity issuance. Downward rating movement would likely result from a fixed charge coverage consistently below 1.0X; effective leverage above 55% (excluding the effect of foreign exchange fluctuations) and/or Net debt to EBITDA consistently above 8.0X. Any difficulty or failure in the company's execution of its capital structure plan and/or any other strategic initiatives would place additional downward pressure on the ratings. Additionally, a meaningful increase in the proportion of secured debt or a decrease in the amount of unencumbered assets that could be used for debt repayment would also result in a downgrade of General Shopping's unsecured ratings. These ratings were downgraded with a negative outlook: General Shopping Finance Limited -- senior unsecured debt rating to B2 from B1 General Shopping Investments Limited -- subordinated debt rating to Caa1 from B3 The last rating action with respect to General Shopping was on May 9, 2014, when Moody's downgraded the senior unsecured ratings of General Shipping Finance Limited to B1 from Ba3 and General Shopping Investments Limited subordinated note rating to B3 from B2 with a stable outlook. General Shopping Brasil S.A. [BOVESPA: GSHP3] is headquartered in São Paulo, Brazil. The company owns interests in 16 shopping centers in which it has a proportional interest of approximately 75%. These shopping centers have an aggregate of 342,524 square meters (m2) of gross leasable area (GLA) and focuses on serving the class B and C consumer. At June 30, 2015, General Shopping reported total assets of approximately R$3.4 billion. The principal methodology used in these ratings was Global Rating Methodology for REITs and Other Commercial Property Firms published in July 2010. GLOBAL MARITIME: Wants to Pay $250,000 to Critical Vendors ---------------------------------------------------------- GMI USA Management, Inc., et al., seek permission from the Bankruptcy Court to pay the claims of certain vendors, including many foreign based entities that have provided essential goods or services to them before the Petition Date. On an interim basis, the Debtors estimate that the Critical Vendor payments will not exceed $250,000 in the aggregate. The Debtors reserve the right to seek to increase the Critical Vendor Fund at a later date if necessary, subject to the Court's approval. The Debtors tell the Court that they rely in the ordinary course of business on the Critical Vendors to supply goods, materials and services without which their business either could not operate or would operate at significantly reduced profitability. "A failure to pay the Critical Vendor Claims would likely result in many of the Critical Vendor refusing to provide goods and services to the Debtors postpetition and may force the Debtors to obtain such goods and services elsewhere at a much higher price or in a quantity or quality that is insufficient to satisfy the Debtors' requirements," says John P. Melko, Esq. at Gardere Wynne Sewell LLP, attorney to the Debtors. The Debtors relate they will use their best efforts to condition payments upon each Critical Vendor's agreement to continue supplying goods and services to them throughout the Chapter 11 cases on the normal and customary trade terms, practices and programs that were in effect prior to the Petition Date. About Global Maritime GMI USA Management, Inc., Global Maritime Investments Cyprus Limited, Global Maritime Investments Holdings Cyprus Limited, Global Maritime Investments 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. The Debtors 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. 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. The Debtors have estimated assets in the range of $1 million to $10 million and liabilities of at least $100 million. Gardere Wynne Sewell, LLP, represents the Debtors as counsel. AMA Capital Parnters serves as the Debtors' financial advisor. HARVEST PARK COMMERCIAL: Voluntary Chapter 11 Case Summary ---------------------------------------------------------- Debtor: Harvest Park Commercial, LLC 2169 Yarrow Mapleton, UT 84664 Case No.: 15-28887 Chapter 11 Petition Date: September 22, 2015 Court: United States Bankruptcy Court District of Utah (Salt Lake City) Judge: Hon. Kimball R. Mosier Debtor's Counsel: David T Berry, Esq. BERRY and TRIPP, P.C. 5296 South 300 West, Suite 200 Salt Lake City, UT 84107 Tel: (801) 265-0700 Fax: (801) 263-2487 Email: bt209@berrytripp.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $10 million to $50 million The petition was signed by Jerry Robinson, manager. The Debtor did not include a list of its largest unsecured creditors when it filed the petition. HARVEST PARK HOMES: Voluntary Chapter 11 Case Summary ----------------------------------------------------- Debtor: Harvest Park Homes, LLC 2169 Yarrow Mapleton, UT 84664 Case No.: 15-28888 Chapter 11 Petition Date: September 22, 2015 Court: United States Bankruptcy Court District of Utah (Salt Lake City) Judge: Hon. William T. Thurman Debtor's Counsel: David T Berry, Esq. BERRY AND TRIPP, P.C. 5296 South 300 West, Suite 200 Salt Lake City, UT 84107 Tel: (801) 265-0700 Fax: (801) 263-2487 Email: bt209@berrytripp.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $10 million to $50 million The petition was signed by Jerry Robinson, manager. The Debtor did not include a list of its largest unsecured creditors when it filed the petition. HAVERHILL CHEMICALS: Approval of Bidding Procedures Sought ---------------------------------------------------------- Haverhill Chemicals LLC asks the Bankruptcy Court to approve bid procedures for the sale of substantially all of its assets. In light of its current financial condition, the Debtor determined that the maximum value will be realized for creditors through a Section 363 sale of its assets and operations. Accordingly, the Debtor filed the Chapter 11 case in order to complete a sale of substantially all of its ALTIVIA Petrochemicals, LLC, subject to higher or better offers. On or about Sept. 18, 2015, ALTIVIA and Haverhill executed an Asset Purchase Agreement. The aggregate purchase price for the Acquired Assets will be $3,000,000 plus assumption of certain liabilities. Pursuant to the Purchase Agreement and as a condition to the continued effectiveness of the Purchase Agreement, the Debtor agreed to seek entry of an order providing ALTIVIA with a certain break-up protections, including a break-up fee in the amount of $150,000 and an expense reimbursement in the maximum amount of $250,000. Since the end of August 2015, Haverhill has worked with ALTIVIA to transfer from Haverhill to ALTIVIA certain environmental operating permits issued by the state of Ohio. These include a Title V permit, a RCRA permit and a NPDES permit. ALTIVIA has made arrangements for the supply of raw materials and the supply of steam that is critical for the operational success of the Haverhill Plant. The Agreement is subject to consideration by the Debtor of higher or better competing bids from qualified bidders. The Agreement requires the Debtor to obtain entry of the Bankruptcy Court of the sale order by the later of (i) 45 days after the Petition Date, and (ii) 35 days after entry of the Bid Procedures Order. Bid Procedures (a) In order for any alternative transaction to be a qualified bid, it must be: (i) in writing; (ii) received by Seller at its addresses no later than the deadline for submitting an Alternative Transaction established by the Bidding Procedures Order; (iii) a firm unconditional bid to purchase the Acquired Assets, not subject to any contingencies as to the validity, effectiveness and/or binding nature of the offer, including, without limitation, further due diligence review or financing; (iv) a firm bid of at least $500,000 over the Purchase Price, with the Excess Amount to be paid in cash; (v) accompanied by sufficient information to demonstrate that the competing bidder has the financial wherewithal and ability to timely consummate the acquisition of the Acquired Assets on terms and conditions substantially the same as the Agreement, including evidence of adequate financing; (vi) accompanied by a signed contract substantially in the form of the Agreement, and marked to show any changes to the Agreement; and (vii) accompanied by a cash deposit of $100,000 to be deposited with Seller on or before the Bid Deadline; (b) Seller will promptly inform Buyer of all Qualified Bids and any information received related to the terms and conditions of those Qualified Bids; (c) Buyer will have the opportunity to increase the Purchase Price to a level at least $100,000 in excess of any Qualified Bid to be eligible to become the starting bid at the Auction contemplated by the Bid Procedures Order; and Buyer will be entitled to credit its Breakup Fee and Expense Reimbursement against the purchase price reflected in such Qualified bid and any subsequent Qualified Bid submitted by the Buyer; (d) Seller will evaluate all Qualified Bids received and will determine which Qualified Bid reflects the highest or best offer as the Starting Auction Bid for the Acquired Assets. Seller will announce its determination of the Starting Auction Bid at the commencement of the Auction; (e) The first incremental competitive bid at the Auction will be at least $100,000 of cash over the Starting Auction Bid, with any subsequent increases of bids to be made in increments equal to at least $100,000 of cash; (f) No bids will be considered by Seller unless a party submitted a Qualified Bid prior to the commencement of the Auction; (g) All of the Acquired Assets will be sold in a single lot; (h) If Seller desires to select a bid from an entity other than Buyer that Buyer believes is not the highest or best bid or that Buyer believes was not from a person qualified to participate in the Auction, Buyer may object to the selection of such bid as the highest or best bid; (i) When determining the highest or best bid at the conclusion of the Auction, Seller will consider the face amount of Buyer's final bid notwithstanding the fact Buyer is entitled to credit the Break Up Fee and the Expense Reimbursement against the purchase reflected in such final bid; (j) Seller will pay the Break Up Fee and the Expense Reimbursement to Buyer; (k) If a bid from an entity other than Buyer is accepted as the Accepted Bid but fails to be consummated, Buyer's original Purchase Price will automatically be deemed the Accepted Bid and Seller and Buyer will be obligated to consummate the transaction on terms of the Agreement; and (l) In the event that Seller determines in good faith that it has not received a Qualified Bid by the Bid Deadline that is a higher or better bid than the one represented by the Agreement, Seller will seek approval of the Agreement at the hearing without conducting an Auction and without further motion or adjournment without the written consent of Buyer. A copy of the Purchase Agreement is available for free at: http://bankrupt.com/misc/HAVERHILL_PurchaseAgreement.pdf About Haverhill Chemicals Haverhill Chemicals LLC filed a Chapter 11 bankruptcy petition (Bankr. S.D. Tex. Case No. 15-34918) on Sept. 18, 2015. The petition was signed by Paul Deputy as chief financial officer. The Debtor estimated assets of $1 million to $10 million and liabilities of $100 million to $500 million. Diamond McCarthy LLP serves as the Debtor's counsel. The case is assigned to Judge Marvin Isgur. The Debtor owns and operated the Haverhill Plant to produce Phenol, Acetone, Bisphenol A (BPA) and Alpha-Methylstyrene ("AMS") for sale to its customers. The chemicals are used to manufacture a wide variety of chemical intermediates, including phenolic resins, paint, varnishes, pharmaceuticals, film, epoxy resins, flame retardants, coatings and heat resistance of polystyrene. HEALTH DIAGNOSTIC: Ettin Group Approved to Sell Misc. Equipment --------------------------------------------------------------- The Hon. Kevin R Huennekens of the U.S. Bankruptcy Court for the Eastern District of Virginia authorized Health Diagnostic Laboratory, Inc., et al., to employ Ettin Group, LLC, as auctioneer nunc pro tunc to the Petition Date. Ettin Group is expected to market and sell miscellaneous equipment and other assets pursuant to the terms of the auctioneer agreement. Under the terms of the auctioneer agreement, Ettin has agreed to advertise and market the Miscellaneous Equipment, and, subject to the Court's approval, other property agreed to by the Debtors and Ettin; and to conduct the auctions in exchange for a 15% buyer's premium on all items sold to be paid by purchasers. Ettin will not charge any other fees or commissions for the sale of the Miscellaneous Equipment. In addition, the auction agreement provides that the Debtors will pay Ettin reasonable and necessary expenses in an amount not to exceed $45,000. To the best of the Debtors' knowledge, Ettin (a) is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. About Health Diagnostic Health Diagnostic Laboratory, Inc., Central Medical Laboratory, LLC, and Integrated Health Leaders, LLC, are health care businesses based in Richmond, Virginia. HDL is a blood testing company. Health Diagnostic Laboratory, Inc. (Bankr. E.D. Va. Case No. 15-32919) and affiliates Central Medical Laboratory, LLC (Bankr. E.D. Va. Case No. 15-32920) and Integrated Health Leaders, LLC (Bankr. E.D. Va. Case No. 15-32921) filed separate Chapter 11 bankruptcy petitions on June 7, 2015. The petitions were signed by Martin McGahan, chief restructuring officer. The Company disclosed $96,130,468 in assets and $108,328,110 in liabiities as of the Chapter 11 filing. Justin F. Paget, Esq., Tyler P. Brown, Esq., Jason W. Harbour, Esq., and Henry P. (Toby) Long, III, Esq. At Hunton & Williams LLP serve as the Debtors' bankruptcy counsel. Alvarez & Marsal is the Debtors' financial advisor. Robert S. Westermann, Esq., at Hirshler Fleisher, P.C., serve as the Debtors' conflicts counsel. American Legal Claims Services, LLC, is the Debtors' claims, noticing and balloting agent. Ettin Group, LLC will market and sell the miscellaneous equipment and other assets. MTS Health Partners, L.P. serves as investment banker. The Official Committee of Unsecured Creditors retained Cooley LLP as its counsel, Protiviti Inc. as its financial advisor. HEALTH DIAGNOSTIC: Protiviti Okayed as Panel's Financial Advisor ---------------------------------------------------------------- The Hon. Kevin R. Huennekens of the U.S. Bankruptcy Court for the Eastern District of Virginia authorized, on a final basis, the Official Committee of Unsecured Creditors in the Chapter 11 cases of Health Diagnostic Laboratory, Inc., et al., to retain Protiviti Inc., as its financial advisor, nunc pro tunc to June 18, 2015. As financial advisor, Protiviti may provide these financial advisory services, among other things: (a) review and analysis of the Debtors' weekly financial and cash flow performance as compared to its budget; (b) review and analysis of historical operating results and recent performance and comparison to Debtors' forecasts, business plan, and long-term projections; (c) review and analysis of Debtors' business segments; and (d) analysis of Debtors' business as a going concern. The Committee may also authorize and instruct Counsel to directly retain Protiviti as a testifying expert to perform financial expert witness, expert testimony, and related expert witness services, as needed. The work may consist of these services: (a) identification, investigation, assessment and analysis of potential causes of action and potential litigation proceeds with respect to the Debtors, directors and officers, insiders, related parties, non-Debtor subsidiaries, and other parties; (b) forensic review and analysis of relevant banking, financial, and accounting transactions; and (c) expert report preparation, deposition, trial preparation, expert witness testimony, and related services with respect to any cause of action, financial, or litigation matter the Committee or Counsel may require. Michael Atkinson, a managing director of Protiviti Inc., with office located at 1 East Pratt Street, Suite 800, Baltimore, Maryland, told the Court that Protiviti has advised the Committee that Protiviti agreed to discount its fees 20% from its standard rates. The discounted billing rates applicable to anticipated professionals and paraprofessionals assigned to the case, are: Professional Level Discounted Billing Rates ------------------ ----------------------- Managing Directors $480 - $536 Directors and Associate Directors $368 - $400 Senior Managers and Managers $236 - $352 Senior Consultants and Consultants $152 - $228 Administrative $104 To the best of the Committee's knowledge, Protiviti is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. About Health Diagnostic Health Diagnostic Laboratory, Inc., Central Medical Laboratory, LLC, and Integrated Health Leaders, LLC, are health care businesses based in Richmond, Virginia. HDL is a blood testing company. Health Diagnostic Laboratory, Inc. (Bankr. E.D. Va. Case No. 15-32919) and affiliates Central Medical Laboratory, LLC (Bankr. E.D. Va. Case No. 15-32920) and Integrated Health Leaders, LLC (Bankr. E.D. Va. Case No. 15-32921) filed separate Chapter 11 bankruptcy petitions on June 7, 2015. The petitions were signed by Martin McGahan, chief restructuring officer. The Company disclosed $96,130,468 in assets and $108,328,110 in liabiities as of the Chapter 11 filing. Justin F. Paget, Esq., Tyler P. Brown, Esq., Jason W. Harbour, Esq., and Henry P. (Toby) Long, III, Esq. At Hunton & Williams LLP serve as the Debtors' bankruptcy counsel. Alvarez & Marsal is the Debtors' financial advisor. Robert S. Westermann, Esq., at Hirshler Fleisher, P.C., serve as the Debtors' conflicts counsel. American Legal Claims Services, LLC, is the Debtors' claims, noticing and balloting agent. Ettin Group, LLC will market and sell the miscellaneous equipment and other assets. MTS Health Partners, L.P. serves as investment banker. The Official Committee of Unsecured Creditors retained Cooley LLP as its counsel, Protiviti Inc. as its financial advisor. HIGHLINE ACADEMY: S&P Lowers Rating on 2011 Charter Bonds to 'BB+' ------------------------------------------------------------------ Standard & Poor's Ratings Services lowered its rating to 'BB+' from 'BBB-' on Public Finance Authority, Wis.' series 2011 charter school revenue bonds supported by Highline Academy Inc., Colo. (doing business as Highline Academy Charter School). The outlook is stable. "The downgrade reflects our view of Highline Academy's expansion into two campuses, for which we now apply our Group Rating Methodology, along with weakened consolidated financials in fiscal 2015 that are more comparable to medians for a 'BB+' rating," said Standard & Poor's credit analyst Stephanie Wang. The Highline Academy organization now includes the southeast campus (HASE) and northeast campus (HANE, also known as Green Valley Ranch), which opened in fall 2014. While enrollment has been steady at HASE and growing at HANE, continual expansion risk at HANE further contributes to the downgrade, in Standard & Poor's view. "We expect Highline Academy to maintain its steady enrollment and demand while displaying strong academic performance. We also expect that HANE will continue to expand, albeit without loans from HASE to help support its operations," Ms. Wang added. "If the academy can build its liquidity and coverage to levels more appropriate for a higher rating, a positive rating action may occur. Conversely, we could lower the rating if the academy falls well short of enrollment expectations, expenses increase, or a reserve drawdown causes operations and liquidity measures to weaken to levels no longer in line with the rating." Highline Academy opened its first campus, Highline Southeast (HASE), in the 2004-2005 academic year, with 260 students from kindergarten through sixth grade (K-6). Enrollment grew to approximately 515 K-8 students for fall 2015. The two campuses are chartered separately by Denver Public Schools, even though they comprise one legal entity. HILLCREST BANK: 8th Cir. Rejects Quintero Investors' Rehearing Bid ------------------------------------------------------------------ Zachary Zagger at Bankruptcy Law360 reported that the U.S. Court of Appeals for the Eighth Circuit, in a one-line order, denied petitions for a rehearing en banc and for a rehearing by the panel made by a group of investors in a failed country club and residential subdivision. The investors seek a reversal of a ruling that they cannot recover their losses from a Kansas bank that backed the project after the bank went belly-up, forcing it into Federal Deposit Insurance Corp. receivership. A three-judge panel ruled in July that Quintero Community Association Inc., a group of investors in Quintero Golf and Country Club in Peoria, Arizona, could not go after Hillcrest Bank to recover some of the millions they say they lost after the project failed, allegedly due to the fraud and mismanagement of the project's developer, Gary McClung. Unable to recover from McClung, the investors went after Hillcrest in Missouri state court. After taking over the failed bank, the FDIC removed the suit to federal court, which tossed most of their claims. The investors argue that the case should have been sent back to state court because the FDIC had waited too long to remove the suit, flouting a 90-day rule. But the Eighth Circuit panel held that even if the FDIC's move to federal court was untimely, it would not be enough to topple the ruling. Attorney Linus L. Baker for the investors told Law360 that the Eighth Circuit ruling results in a "Catch-22" for litigants because they cannot challenge the remand until the end of the ligigation, but that the Eighth Circuit held that the remand issue did not matter since the case had been adequately litigated in federal court. "The effect of the ruling makes the FDIC removal statute meaningless in cases where the district court does not remand an improperly removed case," Baker said in an emailed statement, according to Law360. "Litigants who are aggrieved are left with no real remedy because the right to appeal only occurs when the case become final after all the litigation is completed . . . the fact that a litigant must wait to appeal after the litigation is completed is the very thing that dooms the appeal." The Quintero Community Association is represented by Linus L. Baker. The FDIC is represented by Steven Leigh -- sml@mllfpc.com -- of Martin Leigh Laws & Fritzlen PC and in-house by Jerome Madden. Hillcrest Bank is represented by Thomas Larson -- trlarson@lewisricekc.com -- and Scott Wissel -- sawissel@lewisricekc.com -- of Lewis Rice LLP. The case is Quintero Community Association Inc. et al v. FDIC as Receiver et al., case number 14-2266, in the U.S. Court of Appeals for the Eighth Circuit. HUMMEL STATION: S&P Assigns Prelim. 'BB-' Rating on $455MM Loan --------------------------------------------------------------- Standard & Poor's Ratings Services said it assigned its preliminary 'BB-' debt issue rating to Hummel Station LLC's $455 million senior secured term loan B facility due 2022. The outlook is stable. S&P also assigned a preliminary recovery rating of '1', indicating a "very high" (90% to 100%) recovery of principal if a default occurs. The rating reflects the project's construction phase and operational phase risk profiles, which are the same in S&P's view. S&P's assessment of construction phase risk is driven by the use of a technology that is considered a modified proven design, along with reliance on facility drawdowns during construction. "The operations phase risk profile is driven by expectation of reasonable performance, coupled with significant market, financial performance, and refinancing risks," said Standard & Poor's credit analyst Michael Ferguson. S&P assesses the construction phase stand-alone credit profile (SACP) as 'bb'. This assessment represents several key factors. Although similar technology is currently being installed in other Panda sites, S&P believes there is some risk because this is a unique site and because the F Series turbines are more commonly used in plants where ramping up and down is more frequent, while this plant is expected to have very high capacity factors. The engineering, procurement, and construction contract with two qualified contractors largely mitigates the risk of cost overruns. This came to bear in Panda's Temple and Sherman projects, which had the same contractors and similar contracts. S&P assesses the operations phase SACP as 'bb-'. The project is subject to considerable market risk. Although the PJM has been a robust market in recent years, S&P still expects that merchant energy revenues will be volatile because these can swing due to natural gas prices (the main determinant of power prices), weather patterns, economic growth, and the presence of competitors, all of which are difficult to estimate. Capacity market revenues beyond established auction results are more stable. The plant also benefits from firm gas transportation agreements, which partially mitigate resource risk. The stable outlook reflects S&P's expectation that project will be completed in early 2018 as scheduled, and with minimal cost overruns. S&P expects that the project will then earn DSCRs of about 2.9x on average during the term loan B period. This hinges on continued stability in capacity payments and a robust energy market in PJM, as well as availability of about 94%. This should yield leverage of $263 per kilowatt at maturity, leaving the project with moderate refinancing risk. IAC/INTERACTIVECORP: Moody's May Lower Ba1 CFR Over POF Purchase ---------------------------------------------------------------- Moody's Investors Service said IAC/InterActiveCorp's Ba1 Corporate Family Rating (CFR) and Ba1 Senior Unsecured Notes could face downward ratings pressure to the extent IAC were to add incremental debt to finance the purchase of PlentyofFish ("POF") that resulted in IAC's total debt to EBITDA on a Moody's adjusted basis to rise materially above 3x. The principal methodology used in rating IAC/InterActiveCorp was the Global Broadcast and Advertising Related Industries Methodology published in May 2012. IAC/InterActiveCorp is a leading media and online company that owns more than 150 Internet-based brands and products including: Ask.com (search engine); About.com, Dictionary.com, Investopedia.com (online content and reference libraries), Ask.fm (social) and Apalon (mobile applications); The Match Group (online dating assets, including Match, Tinder and OkCupid; and non-dating asset, The Princeton Review); HomeAdvisor, ShoeBuy (e-commerce); Vimeo (media); and several other consumer-related applications and portals. INFINITY ENERGY: Amends 6.9 Million Shares Resale Prospectus ------------------------------------------------------------ Infinity Energy Resources, Inc., filed an amendment to its Form S-1 registration statement covering an aggregate of up to 6,926,400 shares of its common stock, $0.0001 par value per share, that may be offered from time to time by Hudson Bay Master Fund Ltd. The shares being offered by this prospectus consist of up to 6,926,400 shares issuable upon the conversion of a portion of the Company's Senior Secured Convertible Note due on May 7, 2018, the Company issued in a private placement in May 2015. The Company amended the Registration Statement to delay its effective date. The Company's common stock is currently quoted on the OTCQB Tier operated by OTC Markets Group, Inc. under the symbol "IFNY." On Sept. 17, 2015, the last reported sales price of the Company's common stock was $ 0.13 per share. A full-text copy of the Form S-1/A is available for free at: http://is.gd/xuKONs About Infinity Energy Overland Park, Kansas-based Infinity Energy Resources and its subsidiaries, are engaged in the acquisition and exploration of oil and gas properties offshore Nicaragua in the Caribbean Sea. In its report on the consolidated financial statements for the year ended Dec. 31, 2014, RBSM, LLP, expressed substantial doubt about the Company's ability to continue as a going concern, citing that the Company has suffered recurring losses, has no on-going operations, and has a significant working capital deficit. The Company reported a net loss of $3.68 million for the year ended Dec. 31, 2014, compared with a net loss of $2.43 million during the prior year. As of June 30, 2015, the Company had $9.6 million in total assets, $19.3 million in total liabilities and a stockholders' deficit of $9.61 million. INSURENET INSURANCE: Voluntary Chapter 11 Case Summary ------------------------------------------------------ Debtor: Insurenet Insurance Services, LLC 1906 E. Tyler, Suite J Harlingen, TX 78550 Case No.: 15-70477 Chapter 11 Petition Date: September 22, 2015 Court: United States Bankruptcy Court Southern District of Texas (McAllen) Judge: Hon. Eduardo V Rodriguez Debtor's Counsel: Antonio Villeda, Esq. VILLEDA LAW GROUP 6316 N 10th St, Bldg. B McAllen, TX 78504 Tel: 956-631-9100 Email: avilleda@mybusinesslawyer.com Estimated Assets: $100,000 to $500,000 Estimated Liabilities: $1 million to $10 million The petition was signed by Kevin D. Doty, sole member. The Debtor did not include a list of its largest unsecured creditors when it filed the petition. JB3 LLC: Voluntary Chapter 11 Case Summary ------------------------------------------ Debtor: JB3, LLC 2169 Yarrow Mapleton, UT 84664 Case No.: 15-28886 Chapter 11 Petition Date: September 22, 2015 Court: United States Bankruptcy Court District of Utah (Salt Lake City) Judge: Hon. William T. Thurman Debtor's Counsel: David T Berry, Esq. BERRY AND TRIPP, P.C. 5296 South 300 West, Suite 200 Salt Lake City, UT 84107 Tel: (801) 265-0700 Fax: (801) 263-2487 Email: bt209@berrytripp.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $10 million to $50 million The petition was signed by Jerry Robinson, manager. The Debtor did not include a list of its largest unsecured creditors when it filed the petition. JENNIFER L. FORTUNE DVM: Case Summary & 5 Top Unsecured Creditors ----------------------------------------------------------------- Debtor: Jennifer L. Fortune, DVM, PA dba Niceville Animal Clinic 509 East John Sims Pkwy. Niceville, FL 32578 Case No.: 15-30973 Chapter 11 Petition Date: September 22, 2015 Court: United States Bankruptcy Court Northern District of Florida (Pensacola) Judge: Hon. William S. Shulman Debtor's Counsel: John E. Venn, Esq. JOHN E. VENN, JR., P.A. 220 W. Garden St., Suite 603 Pensacola, FL 32502 Tel: 850-438-0005 Fax: 850-438-1881 Email: johnevennjrpa@aol.com Estimated Assets: $500,000 to $1 million Estimated Liabilities: $1 million to $10 million The petition was signed by Jennifer L. Fortune-Nalovic, president. A list of the Debtor's five largest unsecured creditors is available for free at http://bankrupt.com/misc/flnb15-30973.pdf KITTUSAMY LLP: Court Approves Kolesar & Leatham as Attorney ----------------------------------------------------------- Kittusamy LLP sought and obtained approval from the U.S. Bankruptcy Court for the District of Nevada for authority to employ Kolesar & Leatham as its attorney. The firm will: a) take all necessary action to protect and preserve the Debtor's estate, including the prosecution of actions on the Debtor's behalf, the defense of any actions commenced against the Debtor, the negotiation of disputes in which the Debtor is involved, and the preparation of objections to claims filed against the Debtor's estate; b) prepare motions, answers, schedules, statements, applications, and reports for which the services of an attorney is necessary; c) advise Debtor of its rights and obligations and its performance of its duties during the administration of this case; d) assist Debtor in formulating a plan of reorganization and disclosure statements and to obtain approval and confirmation thereof; and e) represent debtor in all proceedings before the Court and other courts with jurisdiction over this case. The current hourly rates charged by the firm's attorneys and paraprofessionals expected to render services pursuant to the agreement and the application do not exceed $450 per hour for attorneys or $175 per hour for paraprofessionals, including law clerks and paralegals. Bart K. Larsen, Esq., attorney at the firm, assures 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: Bart K. Larsen, Esq. Kolesar & Leatham 400 S. Rampart Blvd., Suite 400 Las Vegas, NV 89145 Tel: 702-362-7800 Email: blarsen@klnevada.com Kittusamy, LLP, doing business as Las Vegas Medical Centers, is subject to an involuntary Chapter 11 bankruptcy petition filed by creditors owed $6.93 million on business loans and an equipment lease. The creditors who signed the petition are: Claim Creditor Nature of Claim Amount -------- --------------- ------ Moonshell, LLC Business Loans $2,952,870 Xspectra, Inc. Business Loan $209,000 Seven Hills Equipment, LLC Equipment Lease $2,740,660 Venus Group, LLC Medical Liens $1,024,682 ---------- $6,927,211 Moonshell and Venus are represented by Samuel A. Schwartz, Esq., at Schwartz Flansburg PLLC. Xspectra and Seven Hills are represented by Matthew C. Zirzow, Esq., at Larson & Zirzon, LLC. KITTUSAMY LLP: Schwartz Flansburg Files Rule 2019 Statement ----------------------------------------------------------- Schwartz Flansburg PLLC disclosed that the firm represents two creditors of Kittusamy LLP in its Chapter 11 case. The creditors are Moonshell LLC and Venus Group LLC. Both companies are based in Las Vegas, Nevada, the law firm disclosed in a filing with the U.S. Bankruptcy Court for the District of Nevada. Schwartz Flansburg made the disclosure pursuant to Rule 2019 of the Federal Rules of Bankruptcy Procedure. Schwartz Flansburg can be reached at: Samuel A. Schwartz, Esq. Bryan A. Lindsey, Esq. Schwartz Flansburg PLLC 6623 Las Vegas Blvd. South, Suite 300 Las Vegas, Nevada 89119 Telephone: (702) 385-5544 Facsimile: (702) 385-2741 Kittusamy, LLP, doing business as Las Vegas Medical Centers, is subject to an involuntary Chapter 11 bankruptcy petition filed by creditors owed $6.93 million on business loans and an equipment lease. The creditors that signed the petition are Moonshell, Venus Group, Seven Hills Equipment LLC and Xspectra Inc. L.B. STRINGFELLOW: Case Summary & 9 Largest Unsecured Creditors --------------------------------------------------------------- Debtor: L.B. Stringfellow DDS, PA 2522 Pinnacle Hills Parkway Rogers, AR 72758 Case No.: 15-72402 Nature of Business: Healthcare Chapter 11 Petition Date: September 22, 2015 Court: United States Bankruptcy Court Western District of Arkansas (Fayetteville) Judge: Hon. Ben T Barry Debtor's Counsel: Carl W. Hopkins, Esq. HOPKINS & HOLMES, PLLC P.O.Box 7359 Van Buren, AR 72956 Tel: (479) 922-2175 Fax: 479-922-2176 Email: cwhopkinslaw@msn.com Estimated Assets: $0 to $50,000 Estimated Liabilities: $1 million to $10 million The petition was signed by Loren B. Stringfellow, owner. A list of the Debtor's nine largest unsecured creditors is available for free at http://bankrupt.com/misc/arwb15-72402.pdf LEGENDS GAMING: Global Gaming Backs at Bad Faith Claim ------------------------------------------------------ Vidya Kauri at Bankruptcy Law360 reported that a Chickasaw Nation-backed gaming company held fast to its assertion that Legends Gaming LLC had introduced a bad faith claim too late during proceedings in a suit over a failed $125 million asset purchase. Global Gaming Solutions LLC told a Louisiana federal court that the deadline for such claims had passed long ago. Global Gaming said the first time it was accused of acting in bad faith since the purchase agreement fell apart in 2013. About Legends Gaming Legends Gaming LLC, owns gaming facilities located in Bossier City, Louisiana, and Vicksburg, Mississippi, operating under the DiamondJack's trade name. Legends Gaming LLC, and five related entities, including Louisiana Riverboat Gaming Partnership, filed Chapter 11 petitions (Bankr. W.D. La. Case No. 12-12013) in Shreveport, Indiana, on July 31, 2012, to sell the business for $125 million to Global Gaming Solutions LLC, absent higher and better offers. Legends Gaming acquired the business from Isle of Capri Casinos Inc., in 2006 for $240 million. After breaching covenant with lenders, the Debtors in March 2008 sought Chapter 11 protection, jointly administered under Louisiana Gaming Partnership (Case No. 08-10824). The Debtors emerged from bankruptcy in September 2009 and retained ownership and operation of two "DiamondJacks" hotels and casinos in Bossier City and Vicksburg. The Plan restructured $162.1 million owed to the first lien lenders and $75 million owed to secured lien lenders, which would be paid in full, with interest, over time. The Debtors' properties comprise 60,000 square feet of gaming space with 1,913 slot machines, 48 table games and 693 hotel rooms. Revenues in fiscal 2011 were $99.8 million in Louisiana and $39.7 million in Mississippi. As of July 31, 2012, first lien lenders are owed $181.2 million and second lien lenders are owed $114.7 million. Louisiana Riverboat Gaming Partnership disclosed $104,846,159 in assets and $298,298,911 in liabilities as of the Chapter 11 filing. Attorneys at Heller, Draper, Hayden Patrick & Horn serve as counsel to the Debtors. Sea Port Group Securities, LLC is the financial advisor. Kurtzman Carson Consultants LLC as is the claims and notice agent. The Debtors have tapped Jenner & Block LLP as special counsel. The primary purposes of the Plan are: (i) to provide for the sale of substantially all of the Debtors' assets to Global Gaming Legends, LLC, a Delaware limited liability company, Global Gaming Vicksburg, LLC, a Delaware limited liability company and Global Gaming Bossier City, LLC, a Delaware limited liability company, pursuant to a certain Purchase Agreement dated as of July 25, 2012; and (ii) to provide for payments and distributions to creditors. LEHMAN BROTHERS: Giddens Wants $260MM in Claims Reclassified ------------------------------------------------------------ Jonathan Randles at Bankruptcy Law360 reported that Lehman Brothers Inc.'s liquidating trustee asked a New York bankruptcy court to reclassify $260 million worth of claims brought under a deferred compensation plan for executives and other employees of the failed brokerage business. Attorneys for James Giddens, LBI's liquidating trustee, filed a motion arguing that the employees' claims should be denied priority status and reclassified from secured to unsecured general creditor claims. Mr. Giddens said the change would allow him to release money that has been set aside to cover the claims. About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers has been a leader in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Lehman Brothers filed for Chapter 11 bankruptcy Sept. 15, 2008 (Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition disclosed US$639 billion in assets and US$613 billion in debts, effectively making the firm's bankruptcy filing the largest in U.S. history. Several other affiliates followed thereafter. Affiliates Merit LLC, LB Somerset LLC and LB Preferred Somerset LLC sought for bankruptcy protection in December 2009. The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq Bankruptcy Solutions serves as claims and noticing agent. Dennis F. Dunne, Esq., Evan Fleck, Esq., and Dennis O'Donnell, Esq., at Milbank, Tweed, Hadley & McCloy LLP, in New York, serve as counsel to the Official Committee of Unsecured Creditors. Houlihan Lokey Howard & Zukin Capital, Inc., is the Committee's investment banker. On Sept. 19, 2008, the Honorable Gerard E. Lynch of the U.S. District Court for the Southern District of New York, entered an order commencing liquidation of Lehman Brothers, Inc., pursuant to the provisions of the Securities Investor Protection Act (Case No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as trustee for the SIPA liquidation of the business of LBI. The Bankruptcy Court approved Barclays Bank Plc's purchase of Lehman Brothers' North American investment banking and capital markets operations and supporting infrastructure for US$1.75 billion. Nomura Holdings Inc., the largest brokerage house in Japan, purchased LBHI's operations in Europe for US$2 plus the retention of most of employees. Nomura also bought Lehman's operations in the Asia Pacific for US$225 million. Lehman emerged from bankruptcy protection on March 6, 2012, more than three years after it filed the largest bankruptcy in U.S. history. The Chapter 11 plan for the Lehman companies other than the broker was confirmed in December 2011. As of Oct. 2, 2014, Lehman's total distributions to unsecured creditors have amounted to $92.0 billion. As of Sept. 30, 2014, the brokerage trustee has substantially completed customer claims distributions, distributing more than $106 billion to 111,000 customers. LERIN HILLS: Court Confirms Liquidating Plan -------------------------------------------- MA Lerin Hills Holder, LP, et al., received an order confirming their proposed Chapter 11 Plan of Liquidation. Controlled by a receiver, the Debtors filed a liquidating plan that gives up control of the assets to their lender. The Plan contemplates the transfer of substantially all of the Debtors' assets, including the proceeds of all claims and causes of action against third parties, to Putnam Funding III, LLC, in full and final satisfaction of the Debtors' prepetition debt and DIP financing obligations to Putnam. Putnam, which claims to be owed not less than $41.3 million as of the Petition Date, and which has provided DIP financing to the Debtor, agreed to contribute up to $1 million (the "GUC Claim Fund") for the payment in full of allowed general unsecured claims and up to an additional $1 million for the payment of allowed administrative expenses and priority claims. On the Effective Date, and after giving effect to the $2,000,000 contribution by Putnam to the Debtors to fund payments under the terms of the Plan, the outstanding balance of the DIP Claims will be not less than $3,506,825, including outstanding principal, accrued interest, and related fees and expenses. No objections to the Plan were filed except for the objections filed by Abel Godines (and joined by Rafael Rios and J. Apolinar Zepeda Sanchez) and by the United States Trustee. The Debtors say they have resolved the objections filed by every party-in-interest other than that of the U.S. Trustee. Classes 1, 2 and 3, which are impaired classes under the Plan, voted to accept the Plan. Class 5 rejected the Plan. Judge Craig A. Gargotta on July 30 approved the Disclosure Statement, set a Sept. 3 deadline for plan objections and ballots, and set a Sept. 10 hearing to consider confirmation of the Amended Plan of Liquidation. Following the Sept. 10 hearing, Judge Gargotta entered an order confirming the Plan after finding that the Plan complies with the applicable provisions of the Bankruptcy Code, thereby satisfying 11 U.S.C. Sec. 1129(a)(1). With respect to the sale of the assets, Putnam or its designee pursuant to Section 6.2 of the Plan, the Court finds, among other things: -- Putnam has formed two new entities, Mariposa Land Company LP ("New Landco") and Mariposa Development Corporation ("New Devco" and, together with New Landco and Putnam and such other entities as may serve as Putnam's designees, the "Putnam Purchasers") to act as its assignees and designees for the purpose of holding the Assets to be distributed, transferred and conveyed to the Prepetition Lender pursuant to the Plan. -- The Sale of the Assets from the Debtors to the Putnam Purchasers, all of which shall occur substantially simultaneously on the Effective Date and without the need for any further act or action by any party, is authorized and approved in all respects pursuant to Sec. 363, 1123(a)(5)(D), 1123(b)(4) and 1141(c) of the Bankruptcy Code. -- The Sale of the Assets to Putnam pursuant to Section 4.2 of the Plan will be treated as a private sale to the Putnam Purchasers pursuant to Section 363(b) in consideration of a credit bid pursuant to Section 363(k) in an amount equal to the full amount of the Prepetition Lender Claims. -- The sale is a prerequisite to the Debtors' ability to confirm and consummate the Plan, and is made in contemplation of such Plan. Accordingly, the sale is a transfer pursuant to section 1146(a) of the Bankruptcy Code, which shall not be taxed under any law imposing a stamp tax or similar tax. The Debtor opposed a motion filed by Abel Godines to extend the time to file an objection to the Chapter 11 plan and for a continuance of the hearing. The Debtor noted that the final DIP order defines "default" to include the failure of the Debtors to commence a hearing on the confirmation of a plan on or before the expiration of 95 days after the Petition Date or Sept. 12, 2015. A copy of the Plan Confirmation Order is available without charge at: http://bankrupt.com/misc/MA_Lerin_H_Plan_Order.pdf A copy of the First Amended Disclosure Statement dated July 30, 2015. http://bankrupt.com/misc/MA_Lerin_H_1st_Am_DS.pdf Copies of the Plan Supplements filed Aug. 24, 2015, is available for free at: http://bankrupt.com/misc/MA_Lerin_H_Plan_Supp_1.pdf http://bankrupt.com/misc/MA_Lerin_H_Plan_Supp_2.pdf Plan Objections Prior to the hearing, two objections to the Plan were filed. The U.S. Trustee objected to provisions in the Plan providing for non-consensual releases of non-debtor entities in violation of 11 U.S.C. Sec. 524(e). Joe Abel Godines asked the Court to reject the Chapter 11 Plan. According to Mr. Godines, the Debtors have misrepresented the value of their assets and have not proposed their Chapter 11 Plan in good faith pursuant to 11 U.S.C. Sec. 1129(a)(3). Mr. Godines says he will show that the actual value of the Debtors' property is substantially higher than that scheduled by Debtors and is high enough to pay 100% of the outstanding debt, or alternatively high enough for the unsecured creditors to share in a pool substantially higher than the $1,000,000 being proposed should the Debtor be liquidated under chapter 7. About Lerin Hills MA Lerin Hills Holder, LP, LH Devco, Inc., and Lerin Hills Utility Inc., own 867 acres of real property known as the Lerin Hills residential real estate development located in Boerne, Texas. The Lerin Hills project currently produces no cash flow, has run out of cash and remains materially unfinished. In December 2014, the companies defaulted on debt to Putnam Funding III, LLC, which claims to be owed not less than $41.3 million as of the Petition Date. On April 7, 2015, at the behest of Putnam, the 216th Judicial District Court in Kendall County, Texas, appointed Andrew S. Cohen as receiver for the assets. On June 8, 2015, the Receiver filed Chapter 11 bankruptcy petitions for MA Lerin Hills and its two affiliates (Bankr. W.D. Tex. Case Nos. 15-51424 to 15-51426) in San Antonio, Texas. The Receiver immediately filed a Joint Chapter 11 Plan of Liquidating Plan for the Debtors. The Plan is being sponsored by Putnam. The Debtors tapped Cox Smith Matthews Incorporated as attorneys. Putnam tapped Akin Gump Strauss Hauer & Feld LLP as counsel. LERIN HILLS: Debtors Declare Exit Plan Effective Sept. 11 --------------------------------------------------------- MA Lerin Hills Holder, LP, et al., served notice that their First Amended Joint Chapter 11 Plan of Liquidation became effective on Sept. 11, 2015. According to the notice, the professional compensation claims deadline is Oct. 12, 2015. The bar date for rejection damages is also Oct. 12, 2015. The administrative claims bar date and the claims objection deadline is Nov. 10, 2015. About Lerin Hills MA Lerin Hills Holder, LP, LH Devco, Inc., and Lerin Hills Utility Inc., own 867 acres of real property known as the Lerin Hills residential real estate development located in Boerne, Texas. The Lerin Hills project currently produces no cash flow, has run out of cash and remains materially unfinished. In December 2014, the companies defaulted on debt to Putnam Funding III, LLC, which claims to be owed not less than $41.3 million as of the Petition Date. On April 7, 2015, at the behest of Putnam, the 216th Judicial District Court in Kendall County, Texas, appointed Andrew S. Cohen as receiver for the assets. On June 8, 2015, the Receiver filed Chapter 11 bankruptcy petitions for MA Lerin Hills and its two affiliates (Bankr. W.D. Tex. Case Nos. 15-51424 to 15-51426) in San Antonio, Texas. The Receiver immediately filed a Joint Chapter 11 Plan of Liquidating Plan for the Debtors. The Plan is being sponsored by Putnam. The Debtors tapped Cox Smith Matthews Incorporated as attorneys. Putnam tapped Akin Gump Strauss Hauer & Feld LLP as counsel. LERIN HILLS: MUD Directors' Bid for Stay Relief Denied ------------------------------------------------------ Judge Craig A. Gargotta of the U.S. Bankruptcy Court for the Western District of Texas, San Antonio Division, denied the request of Gary P. Ard, et al., Directors of Lerin Hills Municipal Utility District, to have the automatic stay in the Chapter 11 cases of MA Lerin Hills Holder, L.P., et al., set aside as it pertains to a non-judicial foreclosure by a receiver for property owned by the Directors individually, for the specific purpose of obtaining injunctive relief and hearing in Kendall County District Court, State of Texas. The Directors alleged that Receiver Andrew S. Cohen has threatened them with foreclosure on September 1, 2015, under authority of various Deeds of Trust, previously released, and absent conditions precedent including proper notice pursuant to Chapter 51 of the Texas Property Code. The Directors sought a hearing before the Kendall County District Court to confirm the Receiver's lack of equity, lien and conditions precedent. The Debtors objected to the request. According to the Debtors, the Directors sought a Court order lifting the automatic stay to allow them to challenge the extent and validity of liens held by Holdco, a Debtor and Debtor-in-Possession. The Directors also sought to lift the automatic stay to assert and litigate to judgment a claim for alleged wrongful foreclosure by a Debtor and Debtor-in-Possession. The Directors also want to prevent the Debtors from maximizing the assets of the estate and carrying out their fiduciary duties by allowing the Directors to remain in control of MUD. The Debtors argue that the proposed actions of the MUD Directors seek to divest the Court of authority to hear and determine core matters, to litigate claims against the Debtors and, at a minimum, to adversely affect the "value of the Property." Putnam Bridge Funding III, LLC also filed an Objection to the request. Gary P. Ard, et al. are represented by: Charles Sullivan, Esq. SULLIVAN & ASSOCIATES, PLLC 308 Campbell Drive Canyon Lake, TX 78133 Telephone: (830)899-3259 Facsimile: (210)579-6448 Email: csullivan@lawcsullivan.com MA Lerin Hills Holder, LP, and its affiliated Debtors are represented by: Deborah D. Williamson, Esq. DYKEMA COX SMITH 112 East Pecan Street, Suite 1800 San Antonio, TX 78205 Telephone: (210)554-5500 Facsimile: (210)226-8395 Email: dwilliamson@dykema.com Putnam Bridge Funding III, LLC is represented by: Michael Cooley, Esq. AKIN GUMP STRAUSS HAUER & FELD LLP 1700 Pacific Avenue, Suite 4100 Dallas, TX 75201 Telephone: (214)969-2723 Facsimile: (214)969-4343 Email: mcooley@akingump.com - and - Daniel McNeel Lane, Jr., Esq. Dennis J. Windscheffel, Esq. AKIN GUMP STRAUSS HAUER & FELD LLP 300 Convent Street, Suite 1600 San Antonio, TX 78205 Telephone: (210)281-7000 Facsimile: (210)224-2035 Email: nlane@akingump.com dwindscheffel@akingump.com About MA Lerin Hills Holder, LP MA Lerin Hills Holder, LP, LH Devco, Inc., and Lerin Hills Utility Inc., own 867 acres of real property known as the Lerin Hills residential real estate development located in Boerne, Texas. The Lerin Hills project currently produces no cash flow, has run out of cash and remains materially unfinished. In December 2014, the companies defaulted on debt to Putnam Funding III, LLC, which claims to be owed not less than $41.3 million as of the Petition Date. On April 7, 2015, at the behest of Putnam, the 216th Judicial District Court in Kendall County, Texas, appointed Andrew S. Cohen as receiver for the assets. On June 8, 2015, the Receiver filed Chapter 11 bankruptcy petitions for MA Lerin Hills and its two affiliates (Bankr. W.D. Tex. Case Nos. 15-51424 to 15-51426) in San Antonio, Texas. The Receiver immediately filed a Joint Chapter 11 Plan of Liquidating Plan for the Debtors. The Plan is being sponsored by Putnam. The Debtors tapped Cox Smith Matthews Incorporated as attorneys. Putnam tapped Akin Gump Strauss Hauer & Feld LLP as counsel. LONGVIEW POWER: Court Issues Final Decree Closing Ch. 11 Case ------------------------------------------------------------- The Hon. Brendan L. Shannon of the U.S. Bankruptcy Court for the District of Delaware issued a final decree closing the Chapter 11 cases of Longview Power LLC and its debtor-affiliates. As reported in the Troubled Company Reporter on Sept. 15, 2015, the Debtors told the Court that all issues, with the exception of the Remaining Claims, have been fully resolved. The limited amount of unresolved issues in the Chapter 11 cases -- less than 20 general unsecured claims -- will not prejudice any party in interest or otherwise negatively affect the resolution of the Remaining Claims, which the Reorganized Debtors anticipate will be resolved without the need to come before the Court. Accordingly, in light of the consummation of the Plan and the restructuring contemplated thereby, and the substantial resolution of nearly all claims left in these chapter 11 cases, the Reorganized Debtors submit that the administration of these chapter 11 cases is no longer necessary and a final decree is warranted under the circumstances. About Longview Power Longview Power LLC is a special purpose entity created to construct, own, and operate a 695 MW supercritical pulverized coal-fired power plant located in Maidsville, West Virginia, just south of the Pennsylvania border and approximately 70 miles south of Pittsburgh. The project is owned 92% by First Reserve Corporation (First Reserve or sponsor), a private equity firm specializing in energy industry investments, through its affiliate GenPower Holdings (Delaware), L.P., and 8% by minority interests. Longview Power, LLC, filed a Chapter 11 (Bank. D. Del. Lead Case 13-12211) on Aug. 30, 2013. The petitions were signed by Jeffery L. Keffer, the Company's chief executive officer, president, treasurer and secretary. The Debtor estimated assets and debts of more than $1 billion. Judge Brendan Linehan Shannon presides over the case. Kirkland & Ellis LLP and Richards, Layton & Finger, P.A., serve as the Debtors' counsel. Lazard Freres & Company LLC acts as the Debtors' investment bankers. Alvarez & Marsal North America, LLC, is the Debtors' restructuring advisors. Ernst & Young serves as the Debtors' accountants. The Debtors' claims agent is Donlin, Recano & Co. Inc. The Debtor disclosed assets of $1.72 billion plus undisclosed amounts and liabilities of $1.08 billion plus undisclosed amounts. A committee of unsecured creditors has not been appointed in the case due to insufficient response to the U.S. Trustee's communication/contact for service on the committee. Judge Brendan Linehan Shannon on March 16, 2015, confirmed the Debtors' Second Amended Joint Plan of Reorganization. The Plan incorporates the settlement among the Debtors, First American Title Insurance Company, and their contractors Amec Foster Wheeler North America, Kvaerner, and Siemens Energy, Inc. MDC HOLDINGS: Moody's Puts Ba1 CFR on Review for Downgrade ---------------------------------------------------------- Moody's Investors Service placed the Ba1 Corporate Family Rating of M.D.C. Holdings, Inc. on review for downgrade. This review was prompted by MDC's continued underperformance vs. Moody's expectations for its earnings growth and improvement in its key credit metrics. Issuer: M.D.C. Holdings, Inc. Corporate Family Rating, Ba1, Review for Downgrade Probability of Default Rating, Ba1-PD, Review for Downgrade Multiple Seniority Shelf (Local Currency) due 2016, (P)Ba1, Review for Downgrade Senior Unsecured Regular Bond/Debenture (Local Currency), Ba1 (LGD4), Review for Downgrade Outlook Actions: Outlook, Changed To Rating Under Review From Stable Affirmations: Speculative Grade Liquidity Rating, Affirmed SGL-2 RATINGS RATIONALE The review, which will conclude within 60 days, will focus on how the company can improve its credit metrics and bring them more in line with a Ba1 rating. Its growth over the last couple of years has been lackluster compared to that of its peers, and some of its key credit metrics are in the lower quintile of the Moody's rated homebuilding universe. While its conservative financial policy, low debt leverage, and a history of strong creditor protection had supported its ratings, its recent underperformance has significantly weakened its position. The key question is if the company can benefit from the recovery in the housing market, improve its performance, and narrow the credit metrics' gap with its peers. Based in Denver, Colorado, MDC, whose subsidiaries build homes under the name "Richmond American Homes," is a mid-sized national homebuilder. The company also provides mortgage financing, primarily for MDC's home buyers, through its wholly owned subsidiary, HomeAmerican Mortgage Corporation. MDC has homebuilding divisions across the country, including Denver, Colorado Springs, Salt Lake City, Las Vegas, Phoenix, Tucson, California, Northern Virginia, Maryland, Jacksonville and Orlando, South Florida, and Seattle. For the trailing 12 months ended June 30, 2015, total revenues were approximately $1.7 billion and consolidated net income was $59 million. The principal methodology used in these ratings was Homebuilding and Property Development Industry published in April 2015. NEW CENTAUR: S&P Affirms 'B' CCR Then Withdraws Rating ------------------------------------------------------ Standard & Poor's Ratings Services said it affirmed its ratings, including the 'B' corporate credit rating, on Indianapolis, Ind.-based gaming operator New Centaur LLC. "We subsequently withdrew all of the ratings at the request of the issuer, including the corporate credit rating and the 'BB-' and 'B' issue-level ratings on the first- and second-lien credit facilities, respectively," said Standard & Poor's credit analyst Stephen Pagano. NORTEL NETWORKS: Files Status Report on Sterling Mets Suit ---------------------------------------------------------- Nortel Networks Inc. filed with the U.S. Bankruptcy Court in Delaware a status report on the case it filed against Sterling Mets LP and several other companies. Nortel disclosed that the defendants and the company have stipulated to a revised schedule in the preference action and the contested matter regarding its objection to claims filed by Queens Ballpark Company LLC. Discovery in the preference action will be conducted in parallel with discovery in the contested matter to the extent such discovery in the preference action promotes judicial economy and avoids unnecessary costs and duplication, according to the report. Pursuant to the scheduling order entered on April 14, the deadline for the completion of written fact discovery in the preference action is extended to October 20, subject to further negotiation by the parties. The case is styled Nortel Networks Inc. v. Sterling Mets LP, et al., Adv. Proc. No. 10-55903. About Nortel Networks Headquartered in Ontario, Canada, Nortel Networks Corporation and its various affiliated entities provided next-generation technologies, for both service provider and enterprise networks, support multimedia and business-critical applications. Nortel did Networks Limited was the principal direct operating subsidiary of Nortel Networks Corporation. On Jan. 14, 2009, Nortel Networks Inc.'s ultimate corporate parent Nortel Networks Corporation, NNI's direct corporate parent Nortel Networks Limited and certain of their Canadian affiliates commenced a proceeding with the Ontario Superior Court of Justice under the Companies' Creditors Arrangement Act (Canada) seeking relief from their creditors. Ernst & Young was appointed to serve as monitor and foreign representative of the Canadian Nortel Group. That same day, the Monitor sought recognition of the CCAA Proceedings in U.S. Bankruptcy Court (Bankr. D. Del. Case No. 09- 10164) under Chapter 15 of the U.S. Bankruptcy Code. That same day, NNI and certain of its affiliated U.S. entities filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Case No. 09-10138). In addition, the High Court of England and Wales placed 19 of NNI's European affiliates into administration under the control of individuals from Ernst & Young LLP. Other Nortel affiliates have commenced and in the future may commence additional creditor protection, insolvency and dissolution proceedings around the world. On May 28, 2009, at the request of administrators, the Commercial Court of Versailles, France, ordered the commencement of secondary proceedings in respect of Nortel Networks S.A. On June 8, 2009, Nortel Networks UK Limited filed petitions in U.S. Bankruptcy Court for recognition of the English Proceedings as foreign main proceedings under Chapter 15. U.S. Bankruptcy Judge Kevin Gross presides over the Chapter 11 and 15 cases. Mary Caloway, Esq., and Peter James Duhig, Esq., at Buchanan Ingersoll & Rooney PC, in Wilmington, Delaware, serves as Chapter 15 petitioner's counsel. In the Chapter 11 case, James L. Bromley, Esq., and Howard S. Zelbo, Esq., at Cleary Gottlieb Steen & Hamilton, LLP, in New York, serve as the U.S. Debtors' general bankruptcy counsel; Derek C. Abbott, Esq., at Morris Nichols Arsht & Tunnell LLP, in Wilmington, serves as Delaware counsel. The Chapter 11 Debtors' other professionals are Lazard Freres & Co. LLC as financial advisors; and Epiq Bankruptcy Solutions LLC as claims and notice agent. The U.S. Trustee appointed an Official Committee of Unsecured Creditors in respect of the U.S. Debtors. An ad hoc group of bondholders also was organized. An Official Committee of Retired Employees and the Official Committee of Long-Term Disability Participants tapped Alvarez & Marsal Healthcare Industry Group as financial advisor. The Retiree Committee is represented by McCarter & English LLP as Delaware counsel, and Togut Segal & Segal serves as the Retiree Committee. The Committee retained Alvarez & Marsal Healthcare Industry Group as financial advisor, and Kurtzman Carson Consultants LLC as its communications agent. Several entities, particularly, Nortel Government Solutions Incorporated and Nortel Networks (CALA) Inc., have material operations and are not part of the bankruptcy proceedings. As of Sept. 30, 2008, Nortel Networks Corp. reported consolidated assets of $11.6 billion and consolidated liabilities of $11.8 billion. The Nortel Companies' U.S. businesses are primarily conducted through Nortel Networks Inc., which is the parent of majority of the U.S. Nortel Companies. As of Sept. 30, 2008, NNI had assets of about $9 billion and liabilities of $3.2 billion, which do not include NNI's guarantee of some or all of the Nortel Companies' about $4.2 billion of unsecured public debt. Since the commencement of the various insolvency proceedings, Nortel has sold its business units and other assets to various purchasers. Nortel has collected roughly $9 billion for distribution to creditors. Of the total, $4.5 billion came from the sale of Nortel's patent portfolio to Rockstar Bidco, a consortium consisting of Apple Inc., EMC Corporation, Telefonaktiebolaget LM Ericsson, Microsoft Corp., Research In Motion Limited and Sony Corporation. The consortium defeated a $900 million stalking horse bid by Google Inc. at an auction. The deal closed in July 2011. Nortel has filed a proposed plan of liquidation in the U.S. Bankruptcy Court. The Plan generally provides for full payment on secured claims with other distributions going in accordance with the priorities in bankruptcy law. The trial on how to divide proceeds among creditors in the U.S., Canada, and Europe commenced on Sept. 22, 2014. The question of how to divide $7.3 billion raised in the international bankruptcy of Nortel Networks Corp. was answered on May 12, 2015, by two judges, one in the U.S. and one in Canada. According to The Wall Street Journal, Justice Frank Newbould of the Ontario Superior Court of Justice in Toronto and Judge Kevin Gross of the U.S. Bankruptcy Court in Wilmington, Del., agreed on the outcome: a modified pro rata split of the money. NORTEL NETWORKS: Says EMEA Unit Should Be Spared From IP Suit ------------------------------------------------------------- Matt Chiappardi at Bankruptcy Law360, reported that the European units of Nortel Networks Inc. urged a Delaware bankruptcy judge on Sept. 8, 2015, not to allow them to be joined to a software copyright infringement and breach-of-contract dispute aimed at the defunct telecom's U.S. arm, arguing that determination of their liability must be made by a U.K. court. During a hearing in Wilmington, an attorney for the bankruptcy estates of Nortel's European, Middle Eastern and African units, known as the EMEA debtors, argued that his clients should not be joined to the long running claims. About Nortel Networks Headquartered in Ontario, Canada, Nortel Networks Corporation and its various affiliated entities provided next-generation technologies, for both service provider and enterprise networks, support multimedia and business-critical applications. Nortel did Networks Limited was the principal direct operating subsidiary of Nortel Networks Corporation. On Jan. 14, 2009, Nortel Networks Inc.'s ultimate corporate parent Nortel Networks Corporation, NNI's direct corporate parent Nortel Networks Limited and certain of their Canadian affiliates commenced a proceeding with the Ontario Superior Court of Justice under the Companies' Creditors Arrangement Act (Canada) seeking relief from their creditors. Ernst & Young was appointed to serve as monitor and foreign representative of the Canadian Nortel Group. That same day, the Monitor sought recognition of the CCAA Proceedings in U.S. Bankruptcy Court (Bankr. D. Del. Case No. 09-10164) under Chapter 15 of the U.S. Bankruptcy Code. That same day, NNI and certain of its affiliated U.S. entities filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Case No. 09-10138). In addition, the High Court of England and Wales placed 19 of NNI's European affiliates into administration under the control of individuals from Ernst & Young LLP. Other Nortel affiliates have commenced and in the future may commence additional creditor protection, insolvency and dissolution proceedings around the world. On May 28, 2009, at the request of administrators, the Commercial Court of Versailles, France, ordered the commencement of secondary proceedings in respect of Nortel Networks S.A. On June 8, 2009, Nortel Networks UK Limited filed petitions in U.S. Bankruptcy Court for recognition of the English Proceedings as foreign main proceedings under Chapter 15. U.S. Bankruptcy Judge Kevin Gross presides over the Chapter 11 and 15 cases. Mary Caloway, Esq., and Peter James Duhig, Esq., at Buchanan Ingersoll & Rooney PC, in Wilmington, Delaware, serves as Chapter 15 petitioner's counsel. In the Chapter 11 case, James L. Bromley, Esq., and Howard S. Zelbo, Esq., at Cleary Gottlieb Steen & Hamilton, LLP, in New York, serve as the U.S. Debtors' general bankruptcy counsel; Derek C. Abbott, Esq., at Morris Nichols Arsht & Tunnell LLP, in Wilmington, serves as Delaware counsel. The Chapter 11 Debtors' other professionals are Lazard Freres & Co. LLC as financial advisors; and Epiq Bankruptcy Solutions LLC as claims and notice agent. The U.S. Trustee appointed an Official Committee of Unsecured Creditors in respect of the U.S. Debtors. An ad hoc group of bondholders also was organized. An Official Committee of Retired Employees and the Official Committee of Long-Term Disability Participants tapped Alvarez & Marsal Healthcare Industry Group as financial advisor. The Retiree Committee is represented by McCarter & English LLP as Delaware counsel, and Togut Segal & Segal serves as the Retiree Committee. The Committee retained Alvarez & Marsal Healthcare Industry Group as financial advisor, and Kurtzman Carson Consultants LLC as its communications agent. Several entities, particularly, Nortel Government Solutions Incorporated and Nortel Networks (CALA) Inc., have material operations and are not part of the bankruptcy proceedings. As of Sept. 30, 2008, Nortel Networks Corp. reported consolidated assets of $11.6 billion and consolidated liabilities of $11.8 billion. The Nortel Companies' U.S. businesses are primarily conducted through Nortel Networks Inc., which is the parent of majority of the U.S. Nortel Companies. As of Sept. 30, 2008, NNI had assets of about $9 billion and liabilities of $3.2 billion, which do not include NNI's guarantee of some or all of the Nortel Companies' about $4.2 billion of unsecured public debt. Since the commencement of the various insolvency proceedings, Nortel has sold its business units and other assets to various purchasers. Nortel has collected roughly $9 billion for distribution to creditors. Of the total, $4.5 billion came from the sale of Nortel's patent portfolio to Rockstar Bidco, a consortium consisting of Apple Inc., EMC Corporation, Telefonaktiebolaget LM Ericsson, Microsoft Corp., Research In Motion Limited, and Sony Corporation. The consortium defeated a $900 million stalking horse bid by Google Inc. at an auction. The deal closed in July 2011. Nortel has filed a proposed plan of liquidation in the U.S. Bankruptcy Court. The Plan generally provides for full payment on secured claims with other distributions going in accordance with the priorities in bankruptcy law. The trial on how to divide proceeds among creditors in the U.S., Canada, and Europe commenced on Sept. 22, 2014. The question of how to divide $7.3 billion raised in the international bankruptcy of Nortel Networks Corp. was answered on May 12, 2015, by two judges, one in the U.S. and one in Canada. According to The Wall Street Journal, Justice Frank Newbould of the Ontario Superior Court of Justice in Toronto and Judge Kevin Gross of the U.S. Bankruptcy Court in Wilmington, Del., agreed on the outcome: a modified pro rata split of the money. OMEGA HEALTHCARE: S&P Raises Corp. Credit Rating From 'BB+' ----------------------------------------------------------- Standard & Poor's Ratings Services raised its corporate credit rating on Omega Healthcare Investors Inc. to 'BBB-' from 'BB+'. The outlook is stable. The issue-level rating on the company's senior unsecured notes is unchanged at 'BBB-'. "The upgrade acknowledges Omega's smooth integration of the merger with Aviv REIT that was completed on April 1, 2015, as well as an improved competitive position bolstered by increased scale and tenant diversification," said credit analyst Michael Souers. "We also acknowledge the company's progress in further strengthening its balance sheet and reducing leverage." The outlook is stable. S&P expects stable cash flows from Omega'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 projects a modest improvement to Omega's credit metrics in 2016, aided by full-year EBITDA contribution from the merger with Aviv, with debt to EBITDA declining to the high-4x range. S&P would consider a downgrade if operating results deteriorate significantly, potentially driven by reimbursement issues that cause rent coverage levels to drop meaningfully. Moreover, S&P would also consider lowering the rating if the company pursued large debt-financed acquisitions that caused debt to EBITDA to rise above 6.5x for a sustained period, given the potential volatility associated with government reimbursement programs. An upgrade is not likely in the next year given S&P's view of the reimbursement risk inherent with the skilled nursing business and current pressures facing some of Omega's tenants. However, S&P would consider raising the rating if Omega finances acquisitions with an even greater proportion of equity such that debt to EBITDA declines below 3.5x and debt to undepreciated capital falls below 35% for a sustained period. ONE SOURCE: Secured Creditors Object to Reorganization Plan ----------------------------------------------------------- Mercedes-Benz Financial Services USA LLC and certain taxing entities have conveyed objections to One Source Industrial Holdings, LLC's Reorganization Plan. Mercedes, which claims to have a perfected security interest in two 2014 Freightliner 122SD vehicles, says the Plan does not provide how the allowed secured claims of Mercedes are to be paid. It adds that the Plan does not provide for Mercedes to retain its lien until its allowed secured claim is paid in full and therefore does not comply with 11 U.S.C. Sec. 1129(b)(2)(A)(i)(I). Wells Fargo Bank, N.A., which asserts a secured claim of $59,666 on account of a 2014 Chevrolet Silverado delivered to the Debtor, said the Debtor has listed the vehicle at a value of $53,578. Wells Fargo asks the Court to order Debtor to modify the Plan to increase the value to $59,666 to be repaid at the contract rate of interest. La Porte Tax Office, Clear Creek Independent School District, Clear Lake Water Authority, City of Houston, Lubbock Central Appraisal District, Midland County, and Andrews County (the "Taxing Entities"), which timely filed proofs of claim for taxes assessed on tangible business personal property of the Debtors, object to the confirmation of the Plan to the extent it does not provide adequate protection for their secured tax claims. The Taxing Entities note that although the Plan defines a Capital Reserve Account it does not appear to provide any information as to how this account will be funded and whether it will be sufficient to pay the Taxing Entities’ claims. Mercedes-Benz Financial Services USA is represented by: Stephen G. Wilcox, Esq. WILCOX LAW, PLLC P.O. Box 201849 Arlington, TX 76006 Tel: (817) 870-1694 Fax: (817) 870-1181 E-mail: swilcox@wilcoxlaw.net Wells Fargo is represented by: Sidney H. Scheinberg, Esq. GODWIN LEWIS PC 1201 Elm Street, Suite 1700 Dallas, TX 75270 Tel: (214) 939-4501 Fax: (214) 527-3116 E-mail: Sid.Scheinberg@GodwinLewis.com La Porte Tax Office, et al., are represented by: PERDUE, BRANDON, FIELDER, COLLINS & MOTT, LLP Elizabeth Banda Calvo, Esq. 500 E. Border St., Suite 640 Arlington, TX 76010 Phone: (817) 461-3344 FAX: (817) 860-6509 E-mail: ebcalvo@pbfcm.com - and - Owen Sonik, Esq. PERDUE, BRANDON, FIELDER COLLINS & MOTT, L.L.P. 1235 North Loop West, Suite 600 Houston, Texas 77008 Phone: (713) 802-6969 Fax: (713) 862-1429 E-mail: osonik@pbfcm.com The Reorganization Plan The Debtors on July 14, 2015, filed a Joint Plan of Reorganization that provides that: -- The holder of the Class 1 – Texas Sales Tax Claim will receive annual cash payments for five years, with interest at 5 percent per annum. -- Each holder of a Class 2 – Secured Tax Claim will receive, at the Debtor's option, (a) the amount of the claim in one cash payment on the initial distribution date, or (b) annual cash payments for five years, with interest at 5 percent per annum. -- Each holder of Class 3 – Secured Claims and Class - 4 Other Secured Claims will receive, either (a) return of the collateral securing the claim in full satisfaction of the Allowed Ally Secured Claim; (b) payment in Cash in an amount equivalent to the lesser of (i) the value of such collateral or (ii) the full amount of the allowed secured Claim; (c) treatment of the secured claim in accordance with Sections 1124(2) or 1129(b)(2) of the Bankruptcy Code; or (d) such other treatment as may be agreed to in writing by the holder of the claim and the Debtors. -- Each holder of a Class 5 – Priority Non-Tax Claims will receive the amount of such holder's allowed claim in one cash payment on or before the initial distribution date. -- The Allowed Class 6 - Amegy Bank Claim will be satisfied in full by the Debtors’ assumption of the Factoring Agreement as described in section 10.02 of the Plan. -- Each holder of a Class 7 – General Unsecured Claim will receive, on or before the initial distribution date and not less than 60 days after the end of each calendar quarter thereafter until the earlier of (a) the payment of such allowed general unsecured claim in full, or (b) 60 months after the Effective Date, a Pro Rata Share of 50% of all Available Net Free Cash Flow of Reorganized Debtor, if any, as reflected in Reorganized Debtor’s books and records as of the end of the calendar quarter immediately preceding each such Distribution date. The remaining 50% of the Available Net Free Cash Flow shall be paid in the Capital Reserve Account. -- All Class 8 – Interests will be extinguished and shall cease to exist as of the Effective Date. The holders of such interests shall not receive or retain any property on account of such Interests under the Plan. Class 6 (Amegy Bank Claim) is unimpaired under the Plan. Every other Class in the Plan is impaired. A copy of the Plan is available for free at: http://bankrupt.com/misc/One_Source_Plan.pdf About One Source Industrial One Source Industrial Holdings, LLC, and One Source Industrial LLC are both limited liability companies that are part of a corporate family of affiliated companies. One Source Industrial Holdings holds equipment utilized by various related entities which provide rental equipment and industrial services to businesses in the oil and gas, refining, manufacturing, pipeline, shipping, and construction industries. The types of equipment possessed by One Source include, e.g., hazardous material transportation vehicles, frac tanks, tank trailers, barrel mix tank and vacuum tankers, air machines, and waste and other industrial boxes and tanks. Industrial provides executive management, accounting, and overhead services for Holdings. One Source Holdings sought Chapter 11 bankruptcy protection (Bankr. N.D. Tex. Case No. 14-44996) in Ft. Worth, Texas, on Dec. 16, 2014. One Industrial sought Chapter 11 bankruptcy protection (Bankr. N.D. Tex. Case No. 15-400038) on Jan. 4, 2015. On Jan. 9, 2015, the Court approved the joint administration of the Debtors' cases for procedural purposes only. Holdings' case is assigned to Judge Russell F. Nelms. The Debtors each estimated $10 million to $50 million in assets and debt. The Debtors are represented by J. Robert Forshey, Esq., and Suzanne K. Rosen, Esq., at Forshey & Prostok, LLP, in Ft. Worth, Texas. No creditor's committee has been appointed in the cases. Further, no trustee or examiner has been requested or appointed in the Debtors' Chapter 11 cases. OPTIMUMBANK HOLDINGS: In Technical Default Under $5.15M Debenture ----------------------------------------------------------------- OptimumBank Holdings, Inc., is in technical default under a $5,155,000 junior subordinated debenture to an unconsolidated subsidiary. The holder of the Debenture has the right to accelerate the outstanding principal balance of $5,155,000, plus all accrued interest. The Debenture has a term of 30 years. The terms of the Debenture allow the Company to defer payments of interest on the Debenture by extending the interest payment period at any time during the term of the Debenture for up to twenty consecutive quarterly periods. The Company exercised its right to defer the payment of interest on the Debenture through June 30, 2015, which was the end of the deferral period. Interest payments deferred as of June 30, 2015, totaled $872,000. The Company did not make the payment of interest due on June 30, 2015. As of Sept. 18, 2015, the holder of the Debenture had not accelerated the debt. Moishe Gubin, a director of the Company, is seeking to purchase the Debenture and, if successful, has agreed to provide the Company with an extension of its obligations under the Debenture. In October 2014, Mr. Gubin made an offer to purchase the Debenture from the trust that holds the Debenture. In December 2014, the trustee of the Trust commenced an interpleader action in the United States District Court for the Southern District of New York, in which it requested judicial guidance with respect to whether it was authorized to sell the Debenture to Mr. Gubin. On Aug. 31, 2015, the court held that the Trustee could not sell the Debenture to Mr. Gubin because certain conditions and requirements set forth in the indenture for the Trust had not been fulfilled. Mr. Gubin intends to continue his efforts to acquire the Debenture. If his efforts are successful, and the sale is completed, then Mr. Gubin would agree to provide the Company with an extension of its obligations under the Debenture on terms to be negotiated by the Company and Mr. Gubin. Due to the litigation involving the Debenture, and based on the advice of legal counsel, it is not possible for the Company to determine whether or when the purchase will be consummated. Therefore, the Company is continuing to pursue other mechanisms for paying the accrued interest. About OptimumBank Holdings OptimumBank Holdings, Inc., headquartered in Fort Lauderdale, Fla., is a one-bank holding company and owns 100 percent of OptimumBank, a state (Florida)-chartered commercial bank. The Company offers a wide array of lending and retail banking products to individuals and businesses in Broward, Miami-Dade and Palm Beach Counties through its executive offices and three branch offices in Broward County, Florida. Optimumbank reported net earnings of $1.6 million on $5.39 million of total interest income for the year ended Dec. 31, 2014, compared to a net loss of $7.07 million on $5.28 million of total interest income for the year ended Dec. 31, 2013. As of June 30, 2015, the Company had $132.6 million in total assets, $129.7 million in total liabilities and $2.9 million in total stockholders' equity. Hacker, Johnson & Smith PA, in Fort Lauderdale, Florida, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2014. The independent auditors noted that the Company is in technical default with respect to its Junior Subordinated Debenture. The holders of the Debt Securities could demand immediate payment of the outstanding debt of $5,155,000 and accrued and unpaid interest, which raises substantial doubt about the Company's ability to continue as a going concern. Effective April 16, 2010, the Bank consented to the issuance of a consent order by the Federal Deposit Insurance Corporation and the Florida Office of Financial Regulation. ORBITZ WORLDWIDE: S&P Withdraws 'B+' CCR on Completed Acquisition ----------------------------------------------------------------- Standard & Poor's Ratings Services said it withdrew its ratings, including its 'B+' corporate credit rating, on Chicago-based Orbitz Worldwide Inc. following the completion of Expedia Inc.'s acquisition of the company. The company completed the transaction at $12 per share in cash, representing an enterprise value of about $1.6 billion, in line with S&P's expectations. OVERSEAS SHIPHOLDING: Moody's Confirms B2 CFR, Outlook Positive --------------------------------------------------------------- Moody's Investors Service confirmed its ratings assigned to Overseas Shipholding Group, Inc. ("OSG"): Corporate Family Rating of B2, Probability of Default Rating (PDR) of B2-PD, first lien senior secured of B1, LGD3, first lien super priority senior secured of Ba2, LGD1 and senior unsecured of Caa1, LGD6. Moody's also changed the Speculative Grade Liquidity rating to SGL-2 from SGL-3. The outlook is positive. This action resolves the review for upgrade initiated on June 16, 2015, when Moody's changed its approach for standard adjustments for operating leases. RATINGS RATIONALE The positive outlook reflects the potential for OSG to further strengthen credit metrics into 2016. Higher than expected operating cash flow from stronger market freight rates for international tankers in 2015 enhances the existing pool of cash of $646 million at the company's disposal at June 30, 2015. The current forward curve for Brent retains a modest positive slope, leading to a barrel price of still below $60 in December 2017. These price levels imply that demand for crude and refined products can be sustained over this period, which should lessen significant downwards pressure on freight rates for international tankers. While OSG has yet to articulate how it will deploy its cash hoard, Moody's continues to believe that OSG will use some of this cash to add vessels to the international fleet. Moody's believes that there is at least $200 million of cash at the parent company following the $200 million dividend from OSG International that occurred this past June, following the amendment of the company's credit agreements. This cash at the parent is freely available for returns to shareholders, should the board choose to do so. Given the distribution of cash across the holding company and the intermediate holding companies that are the primary borrowers under their respective credit agreements, Moody's believes that funded debt could increase should the company grow the fleet as Moody's anticipates. Vessel purchase prices and related earnings will determine the effect on credit metrics and influence the momentum of any ratings upgrade. The adoption in June 2015 of a three times multiple when capitalizing operating leases for shipping companies supports Moody's expectation of sustained stronger credit metrics. Moody's reduced its debt adjustment for OSG to $465 million from about $1.2 billion, providing a more than 1.5 turn decrease in projected Debt to EBITDA to about 4.3 times and an increase in estimated FFO + Interest to Interest to about 2.6 times from about 2.4 times at Dec. 31, 2015. The B2 Corporate Family rating considers OSG's leading position in the U.S. Jones Act and international crude and refined petroleum products transportation markets. Freight rates for the company's international tankers continue to exceed Moody's estimates at the time the company exited bankruptcy, leading to better margins and operating cash flow, which will help strengthen credit metrics within the single-B rating category. Favorable fundamentals of the U.S. Jones Act market and that this subsidiary's fleet is mostly contracted out further support the ratings. The flexibility gained from the amendments to the credit agreements in June 2015 and room under the Debt to EBITDA covenants that limit indebtedness set the stage for acquisitive growth, which could be debt-funded, in either segment. Moody's believes that the good fundamentals in the Jones Act trades will continue, even when newly-built Jones Act product tankers begin to enter the market in 2016 and as incremental barge capacity (articulated tug barges or ATBs) enters the fleet in upcoming years. Moody's expects continuing demand for movement of shale oil and refined products to and from the Louisiana Gulf Coast refineries, as well as across the other U.S. coastal trades. Moody's assumption of steady demand, the contracted nature of the Jones Act operations and the attractiveness to customers of the relatively young product tanker fleet should support earnings and cash flow generation for years to come. A Speculative Grade Liquidity Rating of SGL-2 signifies good liquidity. The large cash balances at each borrowing or debt issuing entity, expectations of positive free cash flow of more than $100 million before any investments in fleet growth, sufficient room under incurrence covenants and the mostly interest-only debt service burden in advance of the next maturity of unsecured notes in 2018 support the change in the SGL rating. The ratings could be upgraded if OSG deploys its cash in a manner that does not weaken its credit metrics relative to Moody's expectation at year-end 2015. Using more of the cash for fleet investments rather than returns to shareholders would limit potential increases in debt and could be supportive of an upgrade. Clarity on the company's fleet plan and financial policy will identify the extent to which funded debt might increase and the related effect on credit metrics. FFO + Interest to Interest that approaches 3.0 times, Retained Cash Flow to Net Debt sustained in excess of 15% and Debt to EBITDA that is sustained below 4.5 times could support an upgrade. Repayments of debt, whether voluntary or pursuant to the excess cash flow sweeps in the respective credit agreements will be important to sustaining stronger credit metrics. The ratings could be downgraded if unrestricted cash is sustained below $100 million or the company becomes reliant on at least one of the revolvers to meet working capital needs. Debt to EBITDA sustained above 6.5 times, FFO + Interest to Interest that approaches 2.0 times, a decline in the EBIT margin to the 12% range, Retained Cash Flow to Net Debt that approaches 8% or sustained negative free cash flow generation could pressure the ratings. Overseas Shipholding Group, Inc. ("OSG"), a Delaware Corporation headquartered in New York, New York, is one of the larger players in the ocean transportation of crude oil and petroleum products. The company operates separate fleets of internationally-flagged tankers trading in international markets through its intermediate holding company subsidiary OSG International, Inc. ("OIN") and US Jones Act qualified vessels trading mainly in US coastal markets through its intermediate holding company subsidiary OSG Bulk Ships, Inc. ("OBS"). These two subsidiaries are the respective primary obligors of the rated credit facilities, which OSG and their respective operating subsidiaries guaranty. Raised Ratings: Issuer: Overseas Shipholding Group, Inc. Speculative Grade Liquidity Rating, Raised to SGL-2 from SGL-3 Outlook Actions: Issuer: OSG Bulk Ships, Inc. Outlook, Changed To Positive From Rating Under Review Issuer: OSG International, Inc. Outlook, Changed To Positive From Rating Under Review Issuer: Overseas Shipholding Group, Inc. Outlook, Changed To Positive From Rating Under Review Confirmations: Issuer: OSG Bulk Ships, Inc. Senior Secured Bank Credit Facility, Confirmed at B1 (LGD3) Issuer: OSG International, Inc. Senior Secured Bank Credit Facility, Confirmed at B1 (LGD3) Senior Secured Bank Credit Facility, Confirmed at Ba2 (LGD1) Issuer: Overseas Shipholding Group, Inc. Probability of Default Rating, Confirmed at B2-PD Corporate Family Rating, Confirmed at B2 Senior Unsecured Regular Bond/Debenture, Confirmed at Caa1 (LGD6) The principal methodology used in these ratings was Global Shipping Industry published in February 2014. PATRIOT COAL: Blackhawk Wins Auction for Majority of Assets ----------------------------------------------------------- Patriot Coal Corporation (OTC Pink: PATCA), a producer and marketer of coal in the eastern United States, on Sept. 22 announced that, following a competitive auction, it is proceeding with a transaction to sell a substantial majority of its operating assets to Blackhawk Mining, LLC. Patriot will seek Court approval of the transaction at a Bankruptcy Court hearing scheduled for Oct. 5, 2015. Bob Bennett, President and Chief Executive Officer of Patriot, said, "The auction process was robust and competitive. We are pleased with the results of the auction and believe that the proposed transaction with Blackhawk is in the best interest of Patriot, and its employees and stakeholders. We look forward to obtaining confirmation of our plan and consummating this transaction, and are gratified to have a solution that preserves jobs in West Virginia, helps ensure environmental obligations are handled in a responsible manner and maximizes value for creditors. As we work to complete the sale process, we remain committed to operating safely and serving our customers." The transaction with Blackhawk is subject to court approval and confirmation of Patriot's proposed plan of reorganization, as well as certain other customary conditions. Coronado Coal LLC, which also submitted a qualified bid and participated in the auction, was designated the backup bidder should the Blackhawk transaction not be approved. * * * Peg Brickley, writing for Dow Jones' Daily Bankruptcy Review, reported Blackhawk President Nick Glancy said the win was "an expected result" at an auction that began Sept. 21 and wrapped up morning of Sept. 22 in New York. About Blackhawk Mining Blackhawk Mining, LLC is a privately owned coal producer operating in Central Appalachia and the Illinois Basin, with 5 active mining complexes. Blackhawk mines, processes and sells bituminous thermal, PCI, stoker and industrial grade metallurgical coal to domestic and international electric utilities, steel producers and industrial customers. About Patriot Coal Patriot Coal Corporation is a producer and marketer of coal in the United States. Patriot and its subsidiaries control 1.4 billion tons of proven and probable coal reserves -- including owned and leased assets in the Central Appalachia basin (in West Virginia and Ohio) and Southern Illinois basin (in Kentucky and Illinois) and their operations consist of eight active mining complexes in West Virginia. Patriot Coal first sought Chapter 11 protection on July 9, 2012, and, on Dec. 18, 2013, won approval of its bankruptcy-exit plan from the U.S. Bankruptcy Court for the Eastern District of Missouri. The plan turned over most of the ownership of the company to bondholders that include New York hedge fund Knighthead Capital Management LLC. The linchpins of the plan were a global settlement among the Debtors, the United Mine Workers of America, and two third parties -- Peabody Energy Corporation and Arch Coal, Inc. -- and a commitment by a consortium of creditors, led by Knighthead, to backstop two rights offerings that funded the plan. Patriot Coal Corporation and its subsidiaries commenced new Chapter 11 cases (Bankr. E.D. Va. Lead Case No. 15-32450) in Richmond, Virginia, on May 12, 2015. The cases are assigned to Judge Keith L. Phillips. Patriot Coal estimated more than $1 billion in assets and debt. The Debtors tapped Kirkland & Ellis LLP as counsel; Kutak Rock L.L.P., as co-counsel; Centerview Partners LLC as investment bankers; Alvarez & Marsal North America, LLC, as restructuring advisors; and Prime Clerk LLC, as claims and administrative agent. The U.S. trustee overseeing the Chapter 11 case of Patriot Coal Corp. appointed seven creditors of the company to serve on the official committee of unsecured creditors. The Committee is represented by Morrison & Foerster LLP as its counsel, and Tavenner & Beran, PLC, as its local counsel. Jefferies LLC serves as its investment banker. The directed the U.S. Trustee to form an official committee of retirees at the behest of Patriot Coal Non-Union Retiree VEBA. The Retiree Committee is represented by Schnader Harrison Segal & Lewis LLP. Proposed buyer, Blackhawk Mining LLC, is represented by Latham & Watkins LLP, in New York. VCLF is represented by Pillsbury Winthrop Shaw Pittman LLP. * * * Judge Keith L. Phillips will convene hearings on Oct. 5 and 6, 2015, to consider confirmation of the Debtors' Fourth Amended Plan. The Plan is predicated on, among other things, the agreement of Blackhawk Mining LLC to purchase certain of the Debtors' assets and assume certain liabilities, absent higher and better offers. The Plan further contemplates that Virginia Conservation Legacy Fund and its affiliate ERP Compliant Fuels, LLC (collectively, "VCLF") will acquire the Federal No. 2 longwall mine, a 1,350 TPH preparation plant, and certain related assets (the "Federal Complex") and certain other Blackhawk excluded assets. PILOT TRAVEL: Moody's Assigns Ba2 Rating on New $700MM Secured Loan ------------------------------------------------------------------- Moody's Investors Service assigned a Ba2 rating to Pilot Travel Centers LLC's proposed new $700 million senior secured term loan. Additionally Moody's affirmed the company's Corporate Family Rating at Ba2 and its Probability of Default rating at Ba3-PD. Moody's affirmed the rating of Pilot's $1,000 million senior secured revolving credit facility, its $1,500 million senior secured term loan A-1 and A-2 and its $1,950 million senior secured term loan B at Ba2. At the same time, the ratings outlook was changed to positive from stable. Proceeds of the new credit facility will be used to fund a shareholder distribution which will result in the reduction of CVC Capital Partners' ownership interest to zero from its current ownership interest of about 9%. Ratings are subject to satisfactory review of documentation. RATINGS RATIONALE The change in outlook to positive acknowledges Pilot's strong operating performance which Moody's believes will continue. "Pilot's strong operating performance supports it maintaining leverage below 3.5 times and strong interest coverage of over 5.0 times, despite the increase in debt to finance the shareholder distribution and the possibility of an erosion in fuel margins in the next 12-18 months", Moody's Senior Analyst Mickey Chadha stated. "Although Pilot derives 90% of its topline from fuel sales, close to half its gross profit is generated through higher margin non-fuel merchandise making its earnings less volatile in light of fluctuating fuel margins", Chadha further stated. Pilot's Ba2 Corporate Family Rating reflects the company's good debt protection metrics, meaningful scale, geographic reach, diverse profit stream, and good liquidity. Pilot generates a large portion of its fuel revenues from diesel and diesel exhaust fluid through direct billing agreements with trucking fleets, which adds to the predictability of its revenue stream and further reduces its earnings volatility. Pilot supplies diesel fuel to the majority of the 100 largest long haul trucking fleets in the US and is the number one supplier of diesel fuel volumes in the country. The ratings are constrained by Pilot's reliance on high volume, low margin fuel sales, some regional concentration, and concern that financial policies with respect to dividends and acquisitions could become more aggressive. These ratings are affirmed: Corporate Family Rating at Ba2 Probability of Default Rating at Ba3 - PD $1,000 million senior secured revolving credit facility due 2019 at Ba2 LGD3 $985 million senior secured term loan A-1 due 2019 at Ba2 LGD3 $515 million senior secured term loan A-2 due 2019 at Ba2 LGD3 $1,950 million senior secured term loan B due 2021 at Ba2 LGD3 These ratings are assigned: Proposed new $700 million senior secured term loan A-3 due 2019 at Ba2 LGD3 The positive outlook reflects the increased likelihood that the company's ratings will be upgraded in the next 12-18 months if operating performance and profitability remain strong resulting in credit metrics remaining at levels indicative of a higher rating. An upgrade would require Pilot's operating performance remaining solid in light of our expectation that fuel margins may decline to more normalized levels from the record levels of late 2014 and early 2015 with gross margins from Pilot's non- fuel businesses remaining stable. A higher rating would also require very good liquidity. Quantitatively, an upgrade would require debt to EBITDA sustained below 3.5 times and EBIT to interest sustained above 4.0 times. A downgrade could occur in the event that liquidity contracted beyond current levels or debt protection metrics weaken due to a sustained deterioration in operating performance. The adoption of an aggressive financial policy or growth strategy that negatively impacted debt protection metrics or liquidity could also pressure the ratings. Specifically, ratings could be downgraded if debt to EBITDA exceeded 4.5 times on a sustained basis or if EBIT to interest is sustained below 2.75 times. Pilot Travel Centers LLC is a partnership that owns and operates over 500 truck stops across the U.S. and Canada. In addition to fuel, Pilot locations have convenience stores, fast food restaurants, and other amenities. Annual revenues are approximately $31 billion. The principal methodology used in this rating was the Global Retail Industry published in June 2011. PILOT TRAVEL: S&P Retains 'BB+' Rating on Revised Recovery Rating ----------------------------------------------------------------- Standard & Poor's Ratings Services revised its recovery rating on Pilot Travel Center LLC's $4.45 billion senior secured debt to '4' from '3', which does not result in a change to the 'BB+' issue-level rating. The rating action follows the company's plan to upsize its term loan A to $2.2 billion from $1.5 billion. The '4' recovery rating on the credit facility reflects S&P's expectation for average recovery of principal in the event of a default. S&P's recovery expectations are in the higher half of the 30% to 50% range. All other ratings, including the 'BB+' corporate credit rating and stable outlook, on the company remain unchanged. S&P expects the company to use $700 million in debt proceeds and $207 million of cash to redeem the equity of minority equity holder, CVC Capital Partners Ltd., and make a $291 million dividend payment to shareholders. Leverage pro forma for the upsizing increases to roughly 2.9x from 2.3x as of June 30, 2015. Pro forma FFO to debt was roughly 32%, down from 38%. S&P believes the company will continue generating good cash flow and that debt to EBITDA (adjusted for operating leases) will remain in 3x area over the intermediate term. S&P's corporate credit rating on Pilot reflects S&P's view of the company's broad geographic footprint in the highly fragmented retail fuel and travel center industry, exposure to fuel cost swings, below-average margins, and somewhat higher volatility of profits than the retail industry given its exposure to fuel prices. Because of the company's scale, it is able to operate at a lower cost than most of its peers and offer competitive pricing on fuel. RATINGS LIST Rating Rating To From Pilot Travel Centers LLC Corporate credit rating Foreign and Local Currency BB+/Stable/-- BB+/Stable/-- Senior Secured Local Currency BB+ BB+ Recovery Rating 4H 3L QUANTUM FOODS: Settles with Raging Bull on Failed Asset Sale ------------------------------------------------------------ Peter Hall at Bankruptcy Law360 reported that Quantum Foods LLC has reached a confidential settlement with Raging Bull Acquisition Co. LLC, a unit of Oaktree Capital Management LP unit, in an adversary proceeding stemming from the unsuccessful $54 million going-concern sale of the bankrupt meat packer. In a notice of the settlement agreement filed in Delaware bankruptcy court, Quantum says it reached the accord on a $5.4 million deposit paid by stalking horse bidder Raging Bull after failed mediation last year led to extensive discovery by the parties. About Quantum Foods Founded in 1990 and headquartered in Bolingbrook, Illinois, Quantum Foods, LLC -- http://www.quantumfoods.com/-- provides protein products made from beef, poultry and pork. Quantum Foods LLC and its affiliates sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 14-10318) on Feb. 18, 2014, to facilitate the sale of substantially all their business. The Debtors' primary secured indebtedness totals $50.2 million, owing to lenders led by Crystal Financial, LLC, as administrative and collateral agent. Quantum Foods is being advised in its restructuring by Daniel J. McGuire, Esq., Gregory M. Gartland, Esq., and Caitlin S. Barr, Esq., at Winston & Strawn as counsel; M. Blake Cleary, Esq., Kenneth J. Enos, Esq., and Andrew Magaziner, Esq., at Young, Conaway, Stargatt & Taylor, LLP, serve as local counsel. City Capital Advisors is the investment banker. FTI Consulting, Inc. also serves as advisor. BMC Group is the claims and notice agent. The U.S. Trustee for Region 3 appointed five members to the official committee of unsecured creditors in the case. The Committee has retained Triton Capital Partners, Ltd. as financial advisor; and Mark D. Collins, Esq., Russell C. Silberglied, Esq., Michael J. Merchant, Esq., Christopher M. Samis, Esq., and Robert C. Maddox, Esq., at Richards, Layton & Finger, P.A. as counsel. Raging Bull is represented in the case by Van C. Durrer II, Esq., at Skadden Arps Slate Meagher & Flom LLP. Crystal Finance LLC is represented by David S. Berman, Esq., at Riemer & Braunstein LLP. QUIRKY INC: Asks Permission to Use Comerica Bank's Cash Collateral ------------------------------------------------------------------ Quirky, Inc., and its debtor affiliates seek authority from the Bankruptcy Court to use cash collateral to, among other things, sustain their operations, maintain business relationships, and pay their employees. The Debtors also require funds to retain and pay costs of professionals, consultants and advisors who will conduct sales of their assets. As of the Petition Date, Quirky had outstanding debt to Comerica Bank, pursuant to (a) a Loan and Security Agreement dated Sept. 25, 2013, as amended, pursuant to which Comerica provided Quirky with a $20 million revolving line of credit and (b) a First Amendment to Loan and Security Agreement dated April 22, 2014, pursuant to which Comerica provided Quirky with a $10 million term loan. As of the Petition Date, the outstanding balance under the Revolver is not less than $20,000,000 and the outstanding balance under the Term Loan is not less than $9,667,000 exclusive of accrued and unpaid interest, fees and expenses. Quirky granted first priority security interests in and liens on certain of its assets, including, without limitation, accounts, chattel paper, deposit accounts, documents, equipment, general intangibles, goods, instruments, inventory, investment property, letter of credit rights, money and certain intellectual property to Comerica to secure repayment of the Prepetition Debt. "Without the use of Cash Collateral, the Debtors would suffer immediate and irreparable harm and the entire bankruptcy proceedings will be jeopardized to the significant detriment of the Debtors' estates and their creditors," asserts Sean C. Southard, Esq., at Klestadt Winters Jureller Southard & Stevens, LLP, counsel to the Debtors. The Debtors propose to provide Comerica Bank with adequate protection lien to secure the Prepetition Obligations and Adequate Protection Superpriority Claims with respect to the Prepetition Obligations. Comerica has indicated its willingness to authorize the use of Cash Collateral, but only on the terms and conditions set forth in the proposed interim order and in accordance with a prepared budget. A copy of the Budget, as attached to the Motion, is available for free at: http://bankrupt.com/misc/16_QUIRKY_CashCollateral.pdf About Quirky, Inc. Headquartered in New York City, Quirky designs and develops various products ranging from electronics, home and garden, kitchen and organization and sells those products through big box retailers like Target and Home Depot and online through its Web site. The Company sold over 150 different products and a total of 4 million units, generating over $50 million in revenue from its retail and consulting businesses in 2014. Quirky, Inc., Wink, Inc. and Undercurrent Acquisition, LLC, sought Chapter 11 protection (Bankr. S.D.N.Y. Case Nos. 15-12596, 15-12597 and 15-12598, respectively) on Sept. 22, 2015, to sell their assets related to the Wink business line as a going concern to Flextronics International USA Inc., for $15 million, absent higher and better offers. The petitions were signed by Charles Kwalwasser, the chief administrative officer. Quirky, Inc., estimated assets in the range of $10 million to $50 million and liabilities of at least $50 million. Judge Martin Glenn is assigned to the case. The Debtors have engaged Cooley LLP as counsel, Klestadt Winters Jureller Southard & Stevens LLP as conflicts counsel, Centerview Partners LLC as investment bankers, FTI Consulting, Inc. as financial advisors, Rust Consulting/Omni Bankruptcy as claims and noticing agent and Hilco IP Services LLC dba Hilco Streambank as intellectual property disposition consultant to Quirky, Inc. QUIRKY INC: Proposes Flextronics-Led Auction on Nov. 2 ------------------------------------------------------ Quirky, Inc., et al., ask the Bankruptcy Court to approve the bidding procedures and bid protections in connection with the sale of certain assets related to the Wink business. The Debtors will dispose of the assets related to Quirky's business pursuant to a separate motion. However, to the extent interested parties seek to acquire any of the "Quirky assets," in connection with an acquisition of the Wink business, they may do so in accordance with the Wink Bidding Procedures. The Debtors hired Centerview Partners LLC as their investment banker in connection with the potential sale of the Wink Business Assets. Centerview conducted a prepetition marketing process which culminated in the receipt of the stalking horse bid. A copy of the Asset Purchase Agreement, dated as of Sept. 21, 2015, by and among the Debtors and Flextronics International USA Inc., is available for free at: http://bankrupt.com/misc/17_QUIRKY_BidProcedures&APA.pdf A. Approval of Stalking Horse Bid Protections The Wink bidding procedures provide, among other things, the approval of (i) a fee equal to 3% of the Purchase Price ($450,000) (the "Break Up Fee"); and (ii) reimbursement of actual, documented, out-of-pocket expenses of up to $200,000 (the "Expense Reimbursement", and together with the Break Up Fee, the "Bid Protections") which is payable to the Wink Stalking Horse Bidder in the event the Bankruptcy Court approves the Sale of the Wink Business Assets to any other person or entity other than the Wink Stalking Horse Bidder, and such Sale closes. B. Participation Requirements. To participate in the bidding process or otherwise be considered for any purpose hereunder, a person or entity (other than the Wink Stalking Horse Bidder) interested in submitting a Bid must, on or before Oct. 27, 2015, at 12:00 p.m. (Eastern Time) deliver the following documents along with an offer for the Wink Business Assets in accordance with Section D below (the "Preliminary Bid Documents"): a. an executed confidentiality agreement on terms reasonably acceptable to the Debtors and containing terms in the aggregate no less favorable to the Debtors in any material respect (other than with respect to the effective periods and the non-disclosure and non-solicitation provisions contained therein, all of which terms shall be commercially reasonable) than those contained in the confidentiality agreement by and among the Wink Stalking Horse Bidder (or its affiliate), the Debtors and certain of their respective affiliates, except that Potential Bidders who have already signed a confidentiality agreement prior to Sept. 22, 2015, need not execute another agreement; and The Preliminary Bid Documents shall be delivered to the following parties: Debtors Quirky, Inc. 606 West 28 th Street New York, New York 10010 Attn: Charles Kwalwasser, Esq. Ed Kremer Proposed Counsel to the Debtors Cooley LLP 1114 Avenue of the Americas New, York, New York 10036 Attn: Jeffrey L. Cohen, Esq. Michael A. Klein, Esq. Investment Banker to the Debtors Centerview Partners LLC 31 West 52 nd Street 22 nd Floor New York, NY 10019 Attn: John Bosacco Emlen Fischer Ryan Kielty Counsel to Comerica Sheppard, Mullin, Richter & Hampton LLP Four Embarcadero Center 17 th Floor San Francisco, CA 94111 Attn: William R. Wyatt, Esq. Within one business day after a Potential Bidder delivers the Preliminary Bid Documents, the Debtors shall determine, in consultation with their advisors and (i) any statutory committee appointed in the Chapter 11 Cases; and (ii) Comerica Bank, and notify the Potential Bidder whether such Potential Bidder has submitted acceptable Preliminary Bid Documents so that the Potential Bidder may conduct a due diligence review with respect to the Wink Business Assets. Only those Potential Bidders that have submitted acceptable Preliminary Bid Documents may submit bids. The Wink Stalking Horse Bidder shall at all times be deemed an Acceptable Bidder. C. Access to Due Diligence. Only Acceptable Bidders shall be eligible to receive due diligence and access to additional non-public information. The Debtors shall provide to each Acceptable Bidder reasonable due diligence information, as requested, as soon as reasonably practicable after such request, which information shall be commensurate with that information given to the Wink Stalking Horse Bidder. To the extent the Debtors provide any information to any Acceptable Bidder that they had not previously provided to the Wink Stalking Horse Bidder, the Debtors shall promptly provide such information to the Wink Stalking Horse Bidder. The due diligence period will end on the Bid Deadline and the Debtors shall have no obligation to furnish any due diligence information after the Bid Deadline. D. Bid Requirements To be eligible to participate in the Auction, an Acceptable Bidder (other than the Wink Stalking Horse Bidder) must deliver to (i) the Debtors and (ii) their counsel and investment banker, which shall be shared with the Committee within one (1) business day following receipt thereof, a written, irrevocable offer that must be determined by the Debtors, in consultation with the Consultation Parties, to satisfy each of the following conditions: a. Same or Better Terms/Identification of Assumed Contracts. Each Bid must be accompanied by clean and duly executed transaction documents (including schedules and exhibits thereto that identify with particularity which of the Debtors' contracts the Acceptable Bidder seeks to have assigned, along with a copy of the Wink Agreement that is marked to reflect the amendments and modifications from such agreement, which modifications may not be materially more burdensome to the Debtors than the Wink Agreement or inconsistent with these Wink Bidding Procedures. b. Bid Deposit. Each Bid must be accompanied by a 10% cash deposit of the proposed purchase price, which shall be sent to counsel to the Debtors by wire transfer, which amount shall be deposited in an interest-bearing account. c. Minimum Bid Amount. The value of each Bid must exceed the aggregate sum of the following: (i) the Stalking Horse Bid; (ii) the Bid Protections; and (iii) $150,000 (all of which must be in the form of cash, and/or the assumption of administrative expense liabilities except to the extent of any secured debt that is being credit bid). The Wink Stalking Horse Bidder will receive a "credit" equal to $650,000 when bidding at the Auction. d. Good Faith Offer. Each Bid must constitute a good faith, bona fide offer to purchase the Wink Business Assets. e. No Contingencies. A Bid must not be conditioned on any contingency, including, among others, on obtaining any of the following: (i) financing, (ii) shareholder, board of directors or other approval, (iii) the outcome or completion of a due diligence review by the Acceptable Bidder; and/or (iv) any third party consents (other than as may be required for the Material Agreements. f. Irrevocable. Each Bid must remain irrevocable for two business days after the Sale Hearing. g. Joint Bids. The Debtors will be authorized to approve joint Bids in the Debtors' exercise of their reasonable good faith business judgment, following consultation with the Consultation Parties, on a case-by-case basis. h. Adequate Assurance Information. Each Bid must be accompanied by sufficient and adequate financial and other information to demonstrate, to the satisfaction of the Debtors, following consultation with the Consultation Parties, that such Acceptable Bidder (i) has the financial wherewithal and ability to consummate in the Sale of the Wink Business Assets and the assumption of the Debtors' liabilities as set forth the Wink Agreement, including payment of any cure amount with respect to any contract that may be assigned with respect to the Sale. The Bid shall also identify a contact person that counterparties to any lease or contract may contact to obtain additional Adequate Assurance Information. i. No Fees. Except with respect to the Wink Stalking Horse Bidder, the Bids must not be subject to any break-up fee, transaction fee, termination fee, expense reimbursement or any similar type of payment or reimbursement. j. Quirky Assets. A Bid may include a proposal to purchase the "Quirky Assets." The Auction may be adjourned to a later date by the Debtors, in consultation with the Consultation Parties, by filing a notice of adjournment with the Court. No further notice of any such continuance will be required to be provided to any party. E. Qualified Bids. Bids, or a combination of one or more Bids, fulfilling all of the preceding requirements shall be deemed to be "Qualified Bids," and those parties submitting Qualified Bids shall be deemed to be "Qualified Bidders." Within two days after the Bid Deadline, the Debtors, in consultation with the Consultation Parties, shall determine which Acceptable Bidders are Qualified Bidders after consultation with their advisors and will notify the Acceptable Bidders whether Bids submitted constitute, alone or together with other Bids, Qualified Bids so as to enable such Qualified Bidders to bid at the Auction. Any Bid that is not deemed a "Qualified Bid" shall not be considered by the Debtors. The Wink Agreement submitted by the Wink Stalking Horse Bidder shall be deemed a Qualified Bid, qualifying the Wink Stalking Horse Bidder to participate in the Auction. F. Bid Deadline. Qualified Bids must be received by (i) the Debtors and (ii) their counsel and investment banker no later than the Bid Deadline of Oct. 29, 2015, at 12:00 p.m. (prevailing Eastern Time). The Debtors, their counsel and/or their investment banker will share the Qualified Bids received with the Consultation Parties within one business day following receipt thereof. G. Evaluation of Qualified Bids. Prior to the Auction, the Debtors shall evaluate Qualified Bids and, in consultation with their advisors and the Consultation Parties, identify the Qualified Bid that is, in the Debtors' judgment, the highest or otherwise best bid (the "Starting Bid"). Within 24 hours of such determination, the Debtors shall notify the Wink Stalking Horse Bidder and the other Qualified Bidders as to which Qualified Bid is the Starting Bid. The Debtors shall distribute copies of the Starting Bid to each Qualified Bidder who has submitted a Qualified Bid. H. No Qualified Bids. If no Qualified Bids are received by the Bid Deadline, then the Auction will not occur, the Wink Agreement will be deemed the Successful Bid and the Debtors will pursue entry of an order by the Bankruptcy Court approving the Wink Agreement and authorizing the Sale of the Wink Business Assets to the Wink Stalking Horse Bidder at the Sale Hearing. I. Auction If one or more Qualified Bids is received by the Bid Deadline, then the Debtors shall conduct the Auction with respect to the Wink Business Assets. The Auction shall commence on Nov. 2, 2015, at 10:00 a.m. (Eastern Time) at the offices of Cooley LLP, 1114 Avenue of the Americas, New York, New York 10036, or such later time (after consultation with the Consultation Parties) or other place as the Debtors shall timely notify the Wink Stalking Horse Bidder and all other Qualified Bidders. The Auction will be conducted in accordance with the following procedures: a. the Auction will be conducted openly; b. only the Qualified Bidders, including the Wink Stalking Horse Bidder, shall be entitled to bid at the Auction; c. the Qualified Bidders, including the Wink Stalking Horse Bidder, shall appear in person or through duly-authorized representatives at the Auction; d. only such authorized representatives of each of the Qualified Bidders, the Wink Stalking Horse Bidder, the Committee, members of the Committee, Comerica, the Debtors, and each of their respective advisors shall be permitted to attend the Auction; e. bidding at the Auction shall begin at the Starting Bid; subsequent Bids at the Auction, including any Bids by Wink Stalking Horse Bidder, shall be made in minimum increments in an amount to be determined by the Debtors, in consultation with the Consultation Parties, to be announced at the Auction; f. each Qualified Bidder will be informed of the terms of the previous Bids and how the Debtors value that bid and what the next required overbid level is; g. the bidding will be transcribed or videotaped to ensure an accurate recording of the bidding at the Auction; h. each Qualified Bidder will be required to confirm on the record of the Auction that it has not engaged in any collusion with respect to the bidding or the Sale; and i. absent irregularities in the conduct of the Auction, the Bankruptcy Court will not consider Bids made after the Auction is closed; and j. the Auction shall be governed by such other Auction Procedures as may be announced by the Debtors after consultation with its advisors and the Consultation Parties from time to time on the record at the Auction; provided, however, that any such other Auction Procedures shall not be inconsistent with any order of the Bankruptcy Court or with the provisions of the Wink Agreement with respect to these Wink Bidding Procedures. The Auction may be adjourned to a later date by the Debtors, in consultation with the Consultation Parties, by filing a notice of adjournment with the Court. No further notice of any such continuance will be required to be provided to any party. J. Acceptance of the Successful Bid. Upon the conclusion of the Auction (if such Auction is conducted), the Debtors, in the exercise of their reasonable, good-faith business judgment, and in consultation with the Consultation Parties, shall identify the highest or otherwise best Qualified Bid that in the exercise of their fiduciary duties the Debtors in good faith believe is materially more beneficial to the Debtors than the Stalking Horse Bid (the "Successful Bid"), which will be determined by considering, among other things: a. the number, type and nature of any changes to the Wink Agreement as appropriate; b. the total expected consideration to be received by the Debtors; c. the likelihood of the bidder's ability to close a transaction and the timing thereof; and d. the expected net benefit to the estates. The Qualified Bidder having submitted a Successful Bid will be deemed the "Successful Bidder". The Successful Bidder and the Debtors shall, as soon as commercially reasonable and practicable, complete and sign all agreements, contracts, instruments or other documents evidencing and containing the terms upon which such Successful Bid was made. The Debtors will present the results of the Auction to the Bankruptcy Court at the Sale Hearing, at which certain findings will be sought from the Bankruptcy Court regarding the Auction, including, among other things, that (a) the Auction was conducted, and the Successful Bidder was selected, in accordance with these Wink Bidding Procedures, (b) the Auction was fair in substance and procedure, (c) the Successful Bid was a Qualified Bid, and (d) consummation of the Successful Bid will provide the highest or otherwise best value for the Wink Business Assets and is in the best interests of the Debtors' estates. If an Auction is held, the Debtors shall be deemed to have accepted a Qualified Bid only when (1) such Qualified Bid is declared the Successful Bid at the Auction and (2) definitive documentation has been executed in respect thereof. Such acceptance is conditioned upon approval by the Bankruptcy Court of the Successful Bid and entry of the Sale Order approving such Successful Bid. K. Sale Hearing A hearing to consider approval of the Qualified Bid submitted by the Successful Bidder (or to approve the Wink Agreement if no Auction is held) is presently scheduled to take place on Nov. 5, 2015, at 10:00 a.m. (prevailing Eastern Time). The Sale Hearing may be adjourned to a later date by the Debtors, in consultation with the Consultation Parties, by filing a notice of adjournment or making an announcement at the Sale Hearing. L. Designation of Back-Up Bidder If for any reason the Successful Bidder fails to consummate the Qualified Bid within the time permitted after the entry of the Wink Sale Order approving the Sale to the Successful Bidder, then the Qualified Bidder with the second highest or otherwise best Bid (the "Back-Up Bidder"), as determined by the Debtors after consultation with their advisors, and in consultation with the Consultation Parties, at the conclusion of the Auction and announced at that time to all the Qualified Bidders participating therein, will automatically be deemed to have submitted the highest or otherwise best Bid (the "Back-Up Bid"). The Debtors will be authorized, but not required, to consummate the transaction pursuant to the Back-Up Bid as soon as is commercially reasonable without further order of the Bankruptcy Court upon at least 24 hours advance notice, which notice will be filed with the Bankruptcy Court. Upon designation of the Back-Up Bidder at the Auction, the Back-Up Bid shall remain open until the closing of the Successful Bid. M. Break Up Fee and Expense Reimbursement In the event that neither the Successful Bid nor the Back-Up Bid is made by the Wink Stalking Horse Bidder, the Debtors and the Agent shall be obligated to pay to the Wink Stalking Horse Bidder from the proceeds of the purchase price for the Wink Business Assets, upon the closing of the Successful Bid or the Back-Up Bid (as applicable) and the payment of such purchase price, by wire transfer in immediately available funds to an account designated by the Wink Stalking Horse Bidder, the Break Up Fee and Expense Reimbursement, in each instance in accordance with the applicable provisions of the Wink Agreement. N. Return of Good Faith Deposit The Good Faith Deposit of the Successful Bidder shall, upon consummation of the Successful Bid, be credited to the purchase price paid for the Wink Business Assets. If the Successful Bidder fails to consummate the Successful Bid (other than due to breach of the applicable asset purchase agreement by the Debtors), then the Good Faith Deposit shall be forfeited to, and retained irrevocably by, the Debtors. O. Reservation of Rights The Debtors reserve their rights to modify these Wink Bidding Procedures, in consultation with the Consultation Parties, in any manner that will best promote the goals of the bidding process (subject to any restrictions set forth in the Wink Agreement) or impose, at or prior to the Auction, additional customary terms and conditions on the Sale of the Wink Business Assets. Notwithstanding anything herein or in the Wink Bidding Procedures Order to the contrary, nothing will in any way impair or enhance, alter or otherwise affect any and all rights that Comerica may have to "credit bid" pursuant to section 363(k) of the Bankruptcy Code or other applicable law. The Debtors assert that the procedures are fair, transparent and will derive the highest or otherwise best bids for the Wink Business Assets. About Quirky, Inc. Headquartered in New York City, Quirky designs and develops various products ranging from electronics, home and garden, kitchen and organization and sells those products through big box retailers like Target and Home Depot and online through its Web site. The Company sold over 150 different products and a total of 4 million units, generating over $50 million in revenue from its retail and consulting businesses in 2014. Quirky, Inc., Wink, Inc. and Undercurrent Acquisition, LLC, sought Chapter 11 protection (Bankr. S.D.N.Y. Case Nos. 15-12596, 15-12597 and 15-12598, respectively) on Sept. 22, 2015, to sell their assets related to the Wink business line as a going concern to Flextronics International USA Inc., for $15 million, absent higher and better offers. The petitions were signed by Charles Kwalwasser, the chief administrative officer. Quirky, Inc., estimated assets in the range of $10 million to $50 million and liabilities of at least $50 million. Judge Martin Glenn is assigned to the case. The Debtors have engaged Cooley LLP as counsel, Klestadt Winters Jureller Southard & Stevens LLP as conflicts counsel, Centerview Partners LLC as investment bankers, FTI Consulting, Inc. as financial advisors, Rust Consulting/Omni Bankruptcy as claims and noticing agent and Hilco IP Services LLC dba Hilco Streambank as intellectual property disposition consultant to Quirky, Inc. QUIRKY INC: Seeks Joint Administration of Cases ----------------------------------------------- Quirky, Inc., Wink, Inc. and Undercurrent Acquisition, LLC ask the Bankruptcy Court to enter an order directing the joint administration of their cases under Case No. 15-12596. The Debtors maintain that the failure to jointly administer their cases would result in numerous duplicative filings for each issue, which would then be served upon separate service lists. This duplication, the Debtors assert, would be extremely wasteful and would unnecessarily overburden the Clerk of the Court. According to the Debtors, joint administration will ease the burden on the office of the United States Trustee in supervising their bankruptcy cases. Joint administration will permit the Clerk of the Court to use a single general docket for each of the Debtors' cases and to combine notices to creditors and other parties-in-interest of the Debtors' respective estates. The Debtors assure the Court that the rights of the respective creditors of each of the Debtors will not be adversely affected inasmuch as the relief sought is purely procedural and is in no way intended to affect substantive rights. About Quirky, Inc. Headquartered in New York City, Quirky designs and develops various products ranging from electronics, home and garden, kitchen and organization and sells those products through big box retailers like Target and Home Depot and online through its Web site. The Company sold over 150 different products and a total of 4 million units, generating over $50 million in revenue from its retail and consulting businesses in 2014. Quirky, Inc., Wink, Inc. and Undercurrent Acquisition, LLC, sought Chapter 11 protection (Bankr. S.D.N.Y. Case Nos. 15-12596, 15-12597 and 15-12598, respectively) on Sept. 22, 2015, to sell their assets related to the Wink business line as a going concern to Flextronics International USA Inc., for $15 million, absent higher and better offers. The petitions were signed by Charles Kwalwasser, the chief administrative officer. Quirky, Inc., estimated assets in the range of $10 million to $50 million and liabilities of at least $50 million. Judge Martin Glenn is assigned to the case. The Debtors have engaged Cooley LLP as counsel, Klestadt Winters Jureller Southard & Stevens LLP as conflicts counsel, Centerview Partners LLC as investment bankers, FTI Consulting, Inc. as financial advisors, Rust Consulting/Omni Bankruptcy as claims and noticing agent and Hilco IP Services LLC dba Hilco Streambank as intellectual property disposition consultant to Quirky, Inc. RENAULT WINERY: Bank Makes $3.36-Million Credit Bid --------------------------------------------------- Reuben Kramer, writing for Press of Atlantic City, reported that the high bid in a bankruptcy auction for Renault Winery Resort and Golf came from the property’s mortgagee, OceanFirst Bank, which made a $3.36 million credit bid on the still-open resort, an attorney for Renault said. According to the report, the Toms River-based bank obtained a mortgage foreclosure judgment against Renault last summer. The property was on the verge of going to a sheriff's sale before the 150-year-old vineyard filed for Chapter 11 bankruptcy protection in November, the report said. About Renault Winery Renault Winery, Inc., and its affiliates own and operate a hotel, two restaurants, a golf course, and a winery. The hotel is located in Egg Harbor City, N.J., and the other businesses are located on adjacent property in Galloway Township, N.J. Renault Winery has served South Jersey as a winery and restaurant facility for the past 150 years. Joseph Milza and his wife, Geraldine, took over the operations of Renault Winery in 1974. The companies that operate the businesses are Renault Winery Inc. (winery, restaurant and gift shop), Renault Golf LLC (golf course), and Tuscany House LLC (hotel, restaurant, and banquet facility). Renault Realty Co., Renault Winery Property LLC, and Renault Winery Inc., own the real estate on which the businesses operate, as well as other real estate in the immediate area. Renault Winery, Inc., and four affiliates sought Chapter 11 protection (Bankr. D.N.J. Lead Case No. 14-33075) in Camden, New Jersey, on Nov. 13, 2014. The cases are assigned to Judge Andrew B. Altenburg Jr. The Debtors tapped Subranni Zauber LLC as counsel. Renault Winery disclosed total assets of $11.3 million and total debt of $8.59 million. RLJ ENTERPRISES: Case Summary & 9 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: RLJ Enterprises, LLC 119 East Bridge Street Granbury, TX 76048 Case No.: 15-43757 Chapter 11 Petition Date: September 22, 2015 Court: United States Bankruptcy Court Northern District of Texas (Ft. Worth) Judge: Hon. Mark X. Mullin Debtor's Counsel: Russell W. King, Esq. KING LAW OFFICE, P.C P.O. Box 772 Stephenville, TX 76401 Tel: (254) 968-8777 Fax: (254) 445-2751 Email: rking@kinglaw.us Total Assets: $1.1 million Total Liabilities: $675,543 The petition was signed by Melinda Jo Ray, owner/president. A list of the Debtor's nine largest unsecured creditors is available for free at http://bankrupt.com/misc/txnb15-43757.pdf ROSETTA GENOMICS: Chief Medical Officer Quits --------------------------------------------- Rosetta Genomics Ltd. announced that Robert Wassman, M.D., resigned from his position as chief medical officer of the Company, effective Sept. 18, 2015. About Rosetta Based in Rehovot, Israel, Rosetta Genomics Ltd. is seeking to develop and commercialize new diagnostic tests based on a recently discovered group of genes known as microRNAs. MicroRNAs are naturally expressed, or produced, using instructions encoded in DNA and are believed to play an important role in normal function and in various pathologies. The Company has established a CLIA- certified laboratory in Philadelphia, which enables the Company to develop, validate and commercialize its own diagnostic tests applying its microRNA technology. Rosetta Genomics reported a loss from continuing operations of $14.5 million on $1.32 million for the year ended Dec. 31, 2014, a loss from continuing operations of $13.2 million in 2013 and a loss from continuing operations of $10.69 million in 2012. As of Dec. 31, 2014, the Company had $17.3 million in total assets, $2.21 million in total liabilities and $15.06 million in total shareholders' equity. Bankruptcy Warning "We will likely require substantial additional funding and expect to augment our cash balance through financing transactions, including the issuance of debt or equity securities and further strategic collaborations. On December 7, 2012, we filed a shelf registration statement on Form F-3 with the SEC for the issuance of ordinary shares, various series of debt securities and/or warrants to purchase any of such securities, either individually or in units, with a total value of up to $75 million, from time to time at prices and on terms to be determined at the time of such offerings. The filing was declared effective on December 19, 2012. As of the time of the filing of this Annual Report on Form 20-F, we had sold through the Cantor Sales Agreement an aggregate of 4,736,854 of our ordinary shares for gross proceeds of $19.9 million under this shelf registration statement, leaving an aggregate of approximately $55.1 million of securities available for sale under this Form F-3, subject to limitations imposed by the SEC for companies with a public float of less than $75 million. If we need additional funding, there can be no assurance that we will be able to obtain adequate levels of additional funding on favorable terms, if at all. If adequate funds are needed and not available, we may be required to: * delay, reduce the scope of or eliminate certain research and development programs; * obtain funds through arrangements with collaborators or others on terms unfavorable to us or that may require us to relinquish rights to certain technologies or products that we might otherwise seek to develop or commercialize independently; * monetize certain of our assets; * pursue merger or acquisition strategies; or * seek protection under the bankruptcy laws of Israel and the United States," the Company said in its annual report for the year ended Dec. 31, 2014. SABLE OPERATING: Hires Gary Todd as Landman to Review Leases ------------------------------------------------------------ Sable Operating Company seeks authorization from the U.S. Bankrupcty Court for the Northern District of Texas to employ Gary L. Todd as landman. The Debtor desires to employ Mr. Todd as its Landman to review the Debtor's 120 leases and determine cessation of production terms including the shut-in royalty payment provisions and which wells hold which leases, and to attempt to reinstate any leases that may have already expired. Mr. Todd shall be compensated at the rate of $450 per day with compensation payable every 2 weeks. Mr. Todd 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. Mr. Todd can be reached at: Gary L. Todd 2201 Adams Dr. Arlington, TX 76011 Tel: (817) 320-3472 E-mail: gtodd1252@sbcglobal.net Sable Operating Company, doing business as Nytex Petroleum, Inc., sought Chapter 11 protection (Bankr. N.D. Tex. Case No. 15-33460) in Dallas on Aug. 28, 2015. The case is assigned to Judge Stacey G. Jernigan. Joyce W. Lindauer, Esq., at Joyce W. Lindauer Attorney, PLLC, in Dallas, serves as counsel. Sable estimated $10 million to $50 million in assets and debt. SABLE OPERATING: Hires Joyce Lindauer as Counsel ------------------------------------------------ Sable Operating Company seeks authorization from the U.S. Bankruptcy Court for the Northern District of Texas to employ Joyce W. Lindauer Attorney, PLLC as counsel. Lindauer has experience representing debtors and debtors-in-possession in numerous proceedings before the bankruptcy courts. Sable wants to hire the firm's Joyce W. Lindauer, Arthur I. Ungerman, and Sarah M. Cox as counsel. Mr. Ungerman is Of Counsel working for Ms. Lindauer. Ms. Cox is an associate attorney working for Ms. Lindauer. The Counsel will be paid at these hourly rates: Joyce W. Lindauer $350 Arthur I. Ungerman $295 Sarah M. Cox $175 Paralegals and Legal Assistants $85-$105 Joyce W. Lindauer will also be reimbursed for reasonable out-of-pocket expenses incurred. Joyce W. Lindauer has been paid a retainer of $6,700 which included the filing fee of $1,717 in connection with this proceeding. Joyce W. Lindauer 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. The Counsel can be reached at: Joyce W. Lindauer, Esq. JOYCE W. LINDAUER ATTORNEY, PLLC 12720 Hillcrest Road, Suite 625 Dallas, TX 75230 Tel: (972) 503-4033 Fax: (972) 503-4034 Sable Operating Company, doing business as Nytex Petroleum, Inc., sought Chapter 11 protection (Bankr. N.D. Tex. Case No. 15-33460) in Dallas on Aug. 28, 2015. The case is assigned to Judge Stacey G. Jernigan. Joyce W. Lindauer, Esq., at Joyce W. Lindauer Attorney, PLLC, in Dallas, serves as counsel. Sable estimated $10 million to $50 million in assets and debt. SABLE OPERATING: Hires Ronald Sentz as Engineer ----------------------------------------------- Sable Operating Company seeks authorization from the U.S. Bankrupcty Court for the Northern District of Texas to employ Ronald M. Sentz as engineer. The Debtor requires Mr. Sentz to: (a) review field production of current wells to determine if improvements can be achieved; (b) review well files of wells to be worked on to make sure the data gets to the field before the wells are worked on; (c) when necessary check onsite field work of repairs, re- works, completions and recompletions of wells; (d) work with Sable pumper to set up guide lines for field work, maintenance and training; (e) maintain reports for all well work; (f) keep Michael Galvis informed of all work being done on a daily basis; and (g) all reports for well work will be sent to Sable's office. The compensation for Mr. Sentz will be $1,000 per day for field work and $175 per hour for office work. Mr. Sentz will also be reimbursed for reasonable out-of-pocket expenses incurred. Mr. Sentz 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. Mr. Sentz can be reached at: Ronald M. Sentz 6451 Bois D'Arc Court Midlothian, TX 76065 Tel: (972) 723-2027 E-mail: ronwopsen@gmail.com Sable Operating Company, doing business as Nytex Petroleum, Inc., sought Chapter 11 protection (Bankr. N.D. Tex. Case No. 15-33460) in Dallas on Aug. 28, 2015. The case is assigned to Judge Stacey G. Jernigan. Joyce W. Lindauer, Esq., at Joyce W. Lindauer Attorney, PLLC, in Dallas, serves as counsel. Sable estimated $10 million to $50 million in assets and debt. SAINT MICHAEL'S: Court Approves Nov. 5 Auction of Assets -------------------------------------------------------- Judge Vincent Papalia of the United States Bankruptcy Court for the District of New Jersey approved the bidding procedures governing the sale of substantially all of the assets of Saint Michael's Medical Center Inc. and its debtor affiliates. A Potential Bidder must submit its bid by no later than Nov. 3. If one or more timely conforming bid is received, the Debtors will conduct an auction on Nov. 5, at 10:00 a.m., at the offices of Cole Schotz P.C., in Hackensack, New Jersey. Any objection to the (a) the scheduled Cure Amount, (b) the assumption and assignment to the Proposed Purchaser of the executory contract and unexpired lease, and (c) the ability of the Proposed Purchaser to provide adequate assurance of future performance must be filed no later than Oct. 21. The Court will convene a hearing on November 12, 2015 10:00 a.m., to consider approval of the stalking horse asset purchase agreement with Prime Healthcare Services or approval of an APA with a winning bidder. The Debtors seek to sell their assets free and clear of liens, claims encumbrances and interests to Prime Healthcare Services for (a) $49,150,000, minus (b) any negative difference between an amount equal to Seller's Net Working Capital at Closing and an amount equal to 10% of Seller's "Net Revenue" for the 2014 fiscal year, plus or minus (c) the positive or negative difference, as the case may be, between the amount of cash and cash equivalents and short-term investments included among the Assets and $13,000,000. Payment of the Break-Up Fee in the amount of $1,228,750 and an expense reimbursement of up to $200,000 are approved. The Court overruled the objections raised to the proposed bidding procedures. Barnabas Health, Inc., a possible bidder, submitted a limited objection to the approval of the bidding procedures, stating that it does not oppose the approval of bidding procedures that will promote a fair, clear, and efficient sale process for the Debtors' assets. Barnabas asked that the Bidding Procedures only be approved if modifications are made to ensure that the Bidding Procedures encourage competitive bidding and provide a fair and level playing field for all prospective bidders, while at the same time providing the Debtors' estates with an efficient process that will, under the facts and circumstances of the case, maximize recoveries for all relevant stakeholders. In response, the Debtors asked the Court to strike the objection, asserting that Barnabas lacks standing to oppose the Bidding Procedures and that the court should therefore not consider it. The U.S. Trustee also filed a limited objection and asked the court not to approve the Debtors' request for approval of a Break-Up Fee of 2.5% of the purchase price and Expense Reimbursement of up to $200,000. District 1199J, National Union of Hospital and Healthcare Employees, AFSCME and District 1199J Benefit and Pension Funds, joined by the Committee of Interns and Residents/SEIU, filed a limited objection, stating that they generally supports the sale of the Debtors' assets to ensure that the hospital will remain for the benefit of the community and its employees. However, the parties told the Court that they concerned that the sale may negatively impact Housestaff Officers or seek to treat the CIR Collective Bargaining Agreement in a manner inconsistent with the Bankruptcy code. The Official Committee of Unsecured Creditors reserved its rights and objection with respect to the proposed bidding procedures to the Debtors. The Committee expects to work collaboratively with the Debtors and Prime through the weekend in an effort to resolve the Committee's issues with the asset purchase agreement on a consensual basis in advance of the hearing. Cigna HealthCare of New Jersey, Inc., New Jersey Department of Health, The Debtors, in response to Cigna, explained that the Assignment and Assumption Procedures attached to the Bidding Procedures Order specifically sets forth that adequate assurance of future performance must be provided within 24 hours of receipt of a Bid from a Potential Bidder. With respect to the Proposed Purchaser, the Debtors have amended the Assignment and Assumption Procedures so that adequate assurance of future performance must be provided by October 14, 2015, seven days prior to the objection deadline. The Debtors also revised the Bidding Procedures to require a "draft" CN Application be filed with the applicable authorities on or before the Bid Deadline to address the Department of Health's objection. In response to the Union's objections, the Debtors amended the Bidding Procedures Order to reflect that one representative from the 1199 and its counsel will be allowed to attend the Auction, if any and for the counsel to 1199 to receive notifications. In response to the U.S. Trustee's objection, the Debtors assert that for the reasons set forth in Section III of this Reply, approval of the Breakup Fee is appropriate and the UST Objection should be overruled. The Debtors are represented by: Michael D. Sirota, Esq. Gerald H. Gline, Esq. Ryan T. Jareck, Esq COLE SCHOTZ, P.C. Court Plaza North 25 Main Street P.O. Box 800 Hackensack, NJ 07602-0800 Tel: (201) 489-3000 Fax: (201) 489-1536 Email: msirota@coleschotz.com ggline@coleschotz.com rjareck @coleschotz.com Barnabas Health is represented by: Kenneth A. Rosen, Esq. Paul Kizel, Esq. Andrew Behlmann, Esq. LOWENSTEIN SANDLER LLP 65 Livingston Avenue Roseland, NJ 07068 Tel: 973-597-2500 Fax: 973-597-2333 Email: krosen@lowenstein.com pkizel@lowenstein.com abehlmann@lowenstein.com Office of the United States Trustee is represented by: Andrew R. Vara, Esq. ACTING UNITED STATES TRUSTEE, REGION 3 Fran B. Steele, Esq. One Newark Center, Suite 2100 Newark, NJ 07102 Tel: (973) 645-3014 Fax: (973) 645-5993 E-mail: Fran.B.Steele@usdoj.gov About Saint Michael's Medical Center Saint Michael's Medical Center, Inc., was incorporated in 2008 to acquire St. Michael's Medical Center and 2 other now defunct hospitals (Saint James Hospital and Columbus Hospital) was acquired from Cathedral Healthcare System Inc., a New Jersey nonprofit. SMMC is a second tier subsidiary of Trinity Health Corporation. The immediate sole corporate member of SMMC is Maxis Health System, a Pennsylvania not-for-profit corporation. Established by the Franciscan Sisters of the Poor in 1867, St. Michael's Medical Center is a 357- bed licensed regional tertiary-care, teaching, and research center in the heart of Newark, New Jersey's business and educational district and is accredited by The Joint Commission. On Aug. 10, 2015, SMMC Inc. and three affiliated debtors each filed a voluntary petition for relief under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the District of New Jersey. The cases are pending before the Honorable Vincent F. Papalia, and the Debtors have requested that their cases be jointly administered under Case No. 15-24999. The Debtors tapped Cole Schotz P.C. as bankruptcy counsel; EisnerAmper LLP as financial advisor; and Prime Clerk LLC as claims and noticing agent. SMMC estimated $100 million to $500 million in assets and debt. SAINT MICHAEL'S: Final DIP Hearing Adjourned to Oct. 2 ------------------------------------------------------ The United States Bankruptcy Court for the District of New Jersey will convene a hearing on Oct. 2, 2015, at 11:00 a.m., to consider final approval of Saint Michael's Medical Center, Inc., et al.'s motion for authority to obtain postpetition secured financing. U.S. Bankruptcy Judge Vincent F. Papalia previously gave the Debtors interim authority to obtain postpetition financing from Trinity Health Corporation in an amount not to exceed $5,000,000. The DIP Lender committed to provide up to $15,000,000, with 6% per annum interest, increasing to 8% per annum upon an event of default or if the DIP Loan is not fully repaid at the Due Date, which is the earlier of the following: (i) April 1, 2016, (ii) the substantial consummation of a confirmed plan of reorganization, (iii) conversion of any of the bankruptcy cases to a case under Chapter 7 of the Bankruptcy Code, (iv) appointment of a trustee for any of the Debtors, or (v) dismissal of any of the bankruptcy cases. The Debtors are represented by: Michael D. Sirota, Esq. Gerald H. Gline, Esq. Ryan T. Jareck, Esq COLE SCHOTZ, P.C. Court Plaza North 25 Main Street P.O. Box 800 Hackensack, New Jersey 07602-0800 Tel: (201) 489-3000 Fax: (201) 489-1536 Email: msirota@coleschotz.com ggline@coleschotz.com rjareck @coleschotz.com About Saint Michael's Medical Center Saint Michael's Medical Center, Inc., was incorporated in 2008 to acquire St. Michael's Medical Center and 2 other now defunct hospitals (Saint James Hospital and Columbus Hospital) was acquired from Cathedral Healthcare System Inc., a New Jersey nonprofit. SMMC is a second tier subsidiary of Trinity Health Corporation. The immediate sole corporate member of SMMC is Maxis Health System, a Pennsylvania not-for-profit corporation. Established by the Franciscan Sisters of the Poor in 1867, St. Michael's Medical Center is a 357- bed licensed regional tertiary-care, teaching, and research center in the heart of Newark, New Jersey's business and educational district and is accredited by The Joint Commission. On Aug. 10, 2015, SMMC Inc. and three affiliated debtors each filed a voluntary petition for relief under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the District of New Jersey. The cases are pending before the Honorable Vincent F. Papalia, and the Debtors have requested that their cases be jointly administered under Case No. 15-24999. The Debtors tapped Cole Schotz P.C. as bankruptcy counsel; EisnerAmper LLP as financial advisor; and Prime Clerk LLC as claims and noticing agent. SMMC estimated $100 million to $500 million in assets and debt. The U.S. trustee for Region 3 has appointed seven creditors of Saint Michael's Medical Center Inc. and its affiliates to serve on the official committee of unsecured creditors. SAINT MICHAEL'S: U.S. Trustee Names S. Goodman as PCO ----------------------------------------------------- Andrew R. Vara, Acting United States Trustee Region 3, notified the United States Bankruptcy Court for the District of New Jersey of the appointment of Susan N. Goodman, RN JD, as patient care ombudsman in the Chapter 11 case of Saint Michael's Medical Center, Inc., and its debtor affiliates. The U.S. Trustee is represented by: Martha R. Hildebrandt, Esq. Fran B. Steele, Esq. UNITED STATES DEPARTMENT OF JUSTICE OFFICE OF THE UNITED STATES TRUSTEE One Newark Center, Suite 2100 Newark, NJ 07102 Tel: (973) 645-3014 Fax: (973) 645-5993 E-mail: Martha.Hildebrandt@usdoj.gov Fran.B.Steele@usdoj.gov About Saint Michael's Medical Center Saint Michael's Medical Center, Inc., was incorporated in 2008 to acquire St. Michael's Medical Center and 2 other now defunct hospitals (Saint James Hospital and Columbus Hospital) was acquired from Cathedral Healthcare System Inc., a New Jersey nonprofit. SMMC is a second tier subsidiary of Trinity Health Corporation. The immediate sole corporate member of SMMC is Maxis Health System, a Pennsylvania not-for-profit corporation. Established by the Franciscan Sisters of the Poor in 1867, St. Michael's Medical Center is a 357- bed licensed regional tertiary-care, teaching, and research center in the heart of Newark, New Jersey's business and educational district and is accredited by The Joint Commission. On Aug. 10, 2015, SMMC Inc. and three affiliated debtors each filed a voluntary petition for relief under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the District of New Jersey. The cases are pending before the Honorable Vincent F. Papalia, and the Debtors have requested that their cases be jointly administered under Case No. 15-24999. The Debtors tapped Cole Schotz P.C. as bankruptcy counsel; EisnerAmper LLP as financial advisor; and Prime Clerk LLC as claims and noticing agent. SMMC estimated $100 million to $500 million in assets and debt. SB PARTNERS: Closes Sale of Lino Lakes Property for $16 Million --------------------------------------------------------------- SB Partners completed the sale of its warehouse distribution property located in Lino Lakes, MN, for $16,050,000 in an all cash transaction, according to a document filed with the Securities and Exchange Commission. The buyer, Biynah Industrial Partners, LLC, has no affiliation with the Company, the document stated. The Company said a portion of the net proceeds from the sale will be used to retire the mortgage secured by Lino Lakes. The remaining portion will be used to pay closing expenses and pay down a portion of Company's unsecured loan payable. SB Partners' consolidated balance sheet as of the last filing date, June 30, 2015, has been restated to reflect the sale of Lino Lakes property and the satisfaction of the secured mortgage note payable, as if the transaction had occurred on such date. Accordingly, the assets and liabilities of Lino Lakes have been removed from the historical balance sheet to reflect the sale of the property. Assets removed included real estate held for sale of $12,026,246 and other assets in discontinued operations totaling $3,400. Liabilities removed include mortgage note in discontinued operations totaling $10,000,000 and the security deposit held for the sole tenant of $25,000. In addition, that portion of the unsecured loan payable and accrued expenses has been removed reflecting the partial pay down of the unsecured loan payable and the satisfaction of the accrued interest related to the unsecured loan payable. In addition, the balance of cash has been increased by $200,000 to reflect the proceeds from the sale of Lino Lakes retained. About SB Partners Milford, Conn.-based SB Partners is a New York limited partnership engaged in acquiring, operating and holding for investment a varying portfolio of real estate interests. As of June 30, 2010, the partnership owns an industrial flex property in Maple Grove, Minnesota and warehouse distribution centers in Lino Lakes, Minnesota and Naperville, Illinois. SB Partners reported a net loss of $875,000 on $1.08 million of total revenues for the year ended Dec. 31, 2014, compared to a net loss of $1.1 million on $896,000 of total revenues for the year ended Dec. 31, 2013. As of June 30, 2015, the Company had $17.24 million in total assets, $23.29 million in total liabilities and total partners' deficit of $6.04 million. SCS HOLDINGS: S&P Revises Outlook to Negative & Affirms 'B+' CCR ---------------------------------------------------------------- Standard & Poor's Ratings Services revised the outlook to negative from stable and affirmed its 'B+' corporate credit rating on San Antonio, Texas-based SCS Holdings I Inc. At the same time, S&P assigned a 'B+' issue-level rating and '3' recovery rating to the company's $505 million first-lien credit facility, comprising a $60 million revolving credit facility due 2020 and a $445 million first-lien term loan due 2022. The '3' recovery rating indicates S&P's expectation of meaningful (50% to 70%, upper half of range) recovery for the first-lien debt holders in the event of default. S&P also assigned a 'B-' issue-level rating and '6' recovery rating to the company's $150 million second-lien term loan due 2023. The '6' recovery indicates S&P's expectation of negligible (0% to 10%) recovery for the second-lien debt holders. "The outlook revision reflects our view of the company's pro forma adjusted leverage in the low 5x area at close of the transaction," said Standard & Poor's credit analyst Geoffrey Wilson. "The outlook revision further reflects our view that underperformance relative to our base-case scenario could result in leverage sustained above the 5x area over the next year, which would likely precipitate a downgrade of the company," Mr. Wilson added. S&P's corporate credit rating on SCS Holdings reflects S&P's view of the company's business risk profile as "weak" and its financial risk profile as "aggressive." S&P's assessments incorporate the company's limited scale in a competitive, fragmented industry and its financial sponsor ownership, which S&P believes will preclude sustained deleveraging. SIRIUS COMPUTER: Moody's Assigns B1 CFR & Rates Sec. Loans Ba3 -------------------------------------------------------------- Moody's Investors Service assigned a B1 corporate family rating and a B1-PD probability of default rating to Sirius Computer Solutions, Inc. (New). As part of the rating action, Moody's assigned a Ba3 rating to the Sirius Computer's proposed $60 million first lien senior secured revolving credit facility and $445 million first senior secured term loan, and a B3 rating to the company's proposed $150 million second lien senior secured term loan. The rating outlook is stable. The proceeds from the new debt borrowings, in addition to $261 million in contributed and rolled over equity, will be used to fund the roughly $830 million acquisition of the company by Kelso & Company and repay existing debt. The assigned ratings are subject to review of final documentation and no material change in the terms and conditions of the transaction as advised to Moody's. At close of the transaction, all existing ratings at Sirius Computer Solutions, Inc. will be withdrawn. RATINGS RATIONALE The B1 CFR reflects Sirius Computer's smaller scale compared to competing IT value-added resellers and managed services firms and the changing nature of IT deployments in the enterprise. The company also has high vendor concentration, with over 52% of the company's revenues represented by IBM products and services. But, Moody's recognizes that Sirius Computer is the largest IBM value-added-reseller of IT solutions primarily serving large enterprises and medium-sized businesses in the US. The company has also made progress to diversify its vendor base to include products from Cisco, EMC, Dell, HP and NetApp which support its continuing profitability in a business requiring minimal capital investment. The company has a consistent track record of generating positive free cash flow and paying down debt. Moody's expects Sirius to generate about $60 million of free cash flow in 2016. Moody's expects Sirius to maintain a good liquidity profile over the next four quarters, supported by modest cash balances and anticipated annual free cash flow generation of $60 million or more. The strong free cash flow is buttressed by low capital expenditures, with annual capital expenditures at less than 1% of revenues. Working capital needs are expected to be modest and consistent with seasonality trends. The ratings for Sirius Computer's debt instruments comprise both the overall probability of default to which Moody's assigned a PDR of B1-PD and an average family loss given default assessment. The Ba3 (LGD3) rating assigned to the first lien senior secured credit facilities using Moody's Loss Given Default Methodology reflects the facilities' senior position in the capital structure. The second lien term loan is rated B3 (LGD5). Moody's also notes the fairly high level of payables with the company's key partner Avnet that currently provides junior capital support and these payment terms may be tightened in a financial distress scenario. The stable outlook reflects Moody's expectation that Sirius Computer will maintain its leading market position as a value-added reseller of IT products and services to the mid-tier market in the US, and produce consistent levels of operating profits and cash flows to enable it to delever. The rating could be upgraded if the company diversifies its customer base, maintains revenue and cash flow growth and improves its credit metrics, such as adjusted debt to EBITDA falls below 3.0 times on a sustained basis, and EBITDA to Interest coverage rises above 4.0 times. The rating could be downgraded if a significant decline in revenue or cash flows lead to adjusted debt to EBITDA staying above 5.0 times or with the expectation of weakened liquidity which could arise from changed payment terms to its vendors, operating losses, dividend payments, or cash acquisitions without a proportionate increase in EBITDA. A deteriorating relationship with key supplier -- IBM, or a failure to further diversify its vendor base, could also place downward pressure on the rating. These ratings were assigned: Corporate Family Rating -- Assigned B1 Probability of Default Rating -- Assigned B1-PD First Lien Senior Secured Credit Facilities -- Ba3 (LGD 3) Second Lien Senior Secured Term Loan -- B3 (LGD 5) The principal methodology used in these ratings was Business and Consumer Service Industry published in December 2014. SPENDSMART NETWORKS: Isaac Blech Reports 11.9% Stake as of Sept. 21 ------------------------------------------------------------------- In an amended Schedule 13D filed with the Securities and Exchange Commission on Sept. 21, 2015, Isaac Blech disclosed that he beneficially owns 2,315,000 shares of common stock of SpendSmart Networks, Inc., which represents 11.9 percent of the shares outstanding. For Mr. Blech, such beneficial ownership includes 815,000 shares of Common Stock issuable upon exercise of options owned by Mr. Blech. Mr. Blech beneficially owns 1,166,666 shares of common stock as sole trustee of the Liberty Charitable Remainder Trust FBO Isaac Blech UAD 01/09/87, River Charitable Remainder Unitrust f/b/o Isaac Blech, and West Charitable Remainder Unitrust. Mr. Blech and the Trusts additionally hold warrants convertible for 1,295,833 shares of Common Stock that are subject to a conversion blocker. On March 5, 2015, the Issuer entered into a stock option agreement pursuant to which it issued a stock option to Mr. Blech to purchase up to an aggregate of 45,000 shares of Common Stock at a purchase price of $0.92 per share. The option was fully-exercisable upon issuance and expires at the earliest of (i) March 5, 2020; (ii) 12 month anniversary of Mr. Blech's termination of service due to death or disability; (iii) 90 days after termination for any reason other than death, disability or cause; or (iv) date of termination if for cause. A copy of the regulatory filing is available for free at: http://is.gd/YQrjZu About SpendSmart Networks SpendSmart Networks, Inc., provides proprietary loyalty systems and a suite of digital engagement and marketing services that help local merchants build relationships with consumers and drive revenues. These services are implemented and supported by a vast network of certified digital marketing specialists, aka "Certified Masterminds," who drive revenue and consumer relationships for merchants via loyalty programs, mobile marketing, mobile commerce and financial tools, such as prepaid card and reward systems. We enter into licensing agreements for our proprietary loyalty marketing solution with "Certified Masterminds" which sell and support the technology in their respective markets. The Company's products aim to make Consumers' dollars go further when they spend it with merchants in the SpendSmart network of merchants, as they receive exclusive deals, earn rewards and ultimately build a connection with their favorite merchants. SpendSmart Networks incurred a net loss of $12.2 million on $4.03 million of total revenues for the year ended Dec. 31, 2014, compared to a net loss of $14.09 million on $0 of total revenues for the year ended Dec. 31, 2013. As of June 30, 2015, the Company had $9.99 million in total assets, $3.61 million in total liabilities and $6.37 million in total stockholders' equity. EisnerAmper LLP, in Iselin, New Jersey, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2014, citing that the Company has recurring net losses since inception and has yet to establish a profitable operation. These factors among others raise substantial doubt about the ability of the Company to continue as a going concern. STANDARD REGISTER: Court Approves WilliamsMarston to Provide CRO ---------------------------------------------------------------- SRC Liquidation Company and its debtor-affiliates sought and obtained permission from the Hon. Brendan L. Shannon of the U.S. Bankruptcy Court for the District of Delaware to employ WilliamsMarston LLC to provide interim management services, and designate Landen C. Williams as replacement Chief Restructuring Officer and Treasurer to the Debtors, nunc pro tunc to August 26, 2015. The Debtors anticipate that during these Chapter 11 Cases, in addition to the ordinary course duties of a chief restructuring officer that typically arise post-sale in a liquidation context, Mr. Williams and the WilliamsMarston Staff will perform a broad range of services, including, without limitation, the following: (a) maintaining a short-term cash flow forecasting process and implementing cash management strategies to maintain the wind-down budget; (b) supporting the Debtors' counsel with the execution of strategies and initiatives to wind-down the Debtors' estates; (c) participating in stakeholder discussions, negotiations and diligence meetings along with the Debtors' counsel; (d) participating in claims processing, estimation, analysis and reporting to support the pursuit of a plan of liquidation; and (e) assisting with all such other liquidation matters and wind- down activities as may be requested by the Debtors' counsel. WilliamsMarston will be paid at these hourly rates: Landen C. Williams, CRO $350 Jonathan T. Marston, Partner $350 Joseph Furnari, Managing Director $300 Paul Poirier, Director $275 Meg Macumber, Manager $250 Euan Milne, Consultant $225 Lynette Tsai, Consultant $225 Partner $350 Managing Director $300 Director $275 Manager $250 Consultant $225 WilliamsMarston will also be reimbursed for reasonable out-of-pocket expenses incurred. Landen C. Williams, co-founder and partner of WilliamsMarston, 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. WilliamsMarston can be reached at: Landen C. Williams WILLIAMSMARSTON LLC 800 Boylston Street, 16th Floor Boston, MA 02199 Tel: (617) 306 – 0951 E-mail: landen@williamsmarston.com About Standard Register Standard Register provides market-specific insights and a compelling portfolio of workflow, content and analytics solutions to address the changing business landscape in healthcare, financial services, manufacturing and retail markets. The Company has operations in all U.S. states and Puerto Rico, and currently employs 3,500 full-time employees and 16 part-time employees. The Standard Register Company and 10 affiliated debtors sought Chapter 11 protection in Delaware on March 12, 2015, with plans to launch a sale process where its largest secured lender would serve as stalking horse bidder in an auction. The cases are pending before the Honorable Judge Brendan L. Shannon and are jointly administered under Case No. 15-10541. The Debtors have tapped Gibson, Dunn & Crutcher LLP and Young Conaway Stargatt & Taylor LLP as counsel; McKinsey Recovery & Transformation Services U.S., LLC, as restructuring advisors; and Prime Clerk LLC as claims agent. The Official Committee of Unsecured Creditors tapped Lowenstein Sandler LLP as its counsel and Jefferies LLC as its exclusive investment banker. TRANS COASTAL: Seeks to Use US Bank Cash Collateral --------------------------------------------------- Trans Coastal Supply Company, Inc., seek authority from the U.S. Bankruptcy Court for the Central District of Illinois to use cash collateral pledged to U.S. Bank, its prepetition lender. Without the use of cash collateral pledged to US Bank, the Debtor's business will suffer an immediate and potentially irreparable harm, Jeffrey D. Richardson, Esq., in Decatur, Illinois, tells the Court. The Debtor submits that US Bank is or can be adequately protected if an order is entered allowing the Debtor's use of cash collateral. Trans Coastal Supply Company, Inc., is represented by: Jeffrey D. Richardson, Esq. 132 South Water Street, Suite 444 Decatur, IL 62523 Telephone: (217)425-4982 About Trans Coastal Headquartered in Decatur, Illinois, Trans Coastal Supply Company Inc ships grain and other agricultural products like the ethanol byproduct distillers dried grains (DDGS) in containers to overseas buyers. Trans Coastal Supply Company Inc. filed for Chapter 11 bankruptcy protection (Bankr. C.D. Ill. Case No. 15-71147) on July 23, 2015. Judge Mary P. Gorman presides over the Debtor's case. Jeffrey D Richardson, Esq., at Richardson & Erickson, represents the Debtor. The Debtor estimated both assets and liabilities between $10 million and $50 million. VIGGLE INC: Widens Net Loss to $78.9 Million in Fiscal 2015 ----------------------------------------------------------- Viggle Inc. filed with the Securities and Exchange Commission its annual report on Form 10-K disclosing a net loss attributable to common stockholders of $78.87 million on $25.52 million of revenues for the year ended June 30, 2015, compared to a net loss attributable to common stockholders of $68.08 million on $17.98 million of revenues for the year ended June 30, 2014. As of June 30, 2015, the Company had $70.22 million in total assets, $54.08 million in total liabilities, $11.81 million in series C convertible redeemable preferred stock, and $4.33 million in total stockholders' equity. BDO USA, LLP, in New York, issued a "going concern" qualification on the consolidated financial statements for the year ended June 30, 2015, citing that the Company has suffered recurring losses from operations and at June 30, 2015, has a deficiency in working capital that raise substantial doubt about its ability to continue as a going concern. A full-text copy of the Form 10-K is available for free at: http://is.gd/PMpIJ6 About Viggle New York City-based Viggle Inc. is a loyalty marketing company. The Company has developed a loyalty program for television that gives people real rewards for checking into the television shows they are watching on most mobile operating system. Viggle users can redeem their points in the app's rewards catalog for items such as movie tickets, music, or gift cards. VILLAGE COURT: Voluntary Chapter 11 Case Summary ------------------------------------------------ Debtor: Village Court, LLC 2169 Yarrow Mapleton, UT 84664 Case No.: 15-28889 Chapter 11 Petition Date: September 22, 2015 Court: United States Bankruptcy Court District of Utah (Salt Lake City) Judge: Hon. William T. Thurman Debtor's Counsel: David T Berry, Esq. BERRY AND TRIPP, P.C. 5296 South 300 West, Suite 200 Salt Lake City, UT 84107 Tel: (801) 265-0700 Fax: (801) 263-2487 Email: bt209@berrytripp.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $10 million to $50 million The petition was signed by Jerry Robinson, manager. The Debtor did not include a list of its largest unsecured creditors when it filed the petition. VISCOUNT SYSTEMS: Principal Accounting Officer Resigns ------------------------------------------------------ Shavi Morsara resigned as principal accounting officer and controller of Viscount Systems, Inc., effective Sept. 15, 2015. Mr. Morsara's resignation was not the result of any disagreement with the Company, according to a regulatory filing with the Securities and Exchange Commission. About Viscount Systems Burnaby, Canada-based Viscount Systems, Inc., is a manufacturer, developer and service provider of access control security products. Viscount Systems reported a net loss and comprehensive loss of C$991,000 on C$4.76 million of sales for the year ended Dec. 31, 2014, compared to a net loss and comprehensive loss of C$3.08 million on C$4.13 million of sales in 2013. As of June 30, 2015, the Company had C$1.84 million in total assets, C$1.74 million in total liabilities, C$16,696 in convertible redeemable preferred stock and C$88,796 in total stockholders' equity. Dale Matheson Carr-Hilton Labonte LLP, in Vancouver, Canada, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2014, citing that the Company has incurred losses in developing its business, and further losses are anticipated in the future. The Company requires additional funds to meet its obligations and the costs of its operations and there is no assurance that additional financing can be raised when needed. These factors raise substantial doubt about the Company's ability to continue as a going concern. WHITTEN FOUNDATION: IberiaBank Proposes Sale-Based Plan ------------------------------------------------------- IberiaBank will appear before the U.S. Bankruptcy Court for the Western District of Louisiana, Lake Charles Division, on Oct. 15, 2015, at 10:30 a.m., to seek approval of the disclosure statement explaining a proposed liquidating plan for Whitten Foundation. The Plan contemplates the sale of Whitten Foundation's apartment complexes for $12.5 million. Objections to the adequacy of the information in the disclosure statement are due Oct. 8, 2015. According to the disclosure statement, originally filed Sept. 3, 2015, and amended on Sept. 9, 2015, the foundation for Iberia's liquidating plan is a proposed sale of the Debtor's properties to Juniper Investment Group, Ltd. for $12,500,000. The Debtor's Embers property is to be sold for $9,000,000 and Courtyard Orleans for $3,500,000. IberiaBank says that consummation of the sale will be sufficient to pay all allowed administrative claims, priority claims, and secured claims in full together with a meaningful dividend to unsecured creditors of perhaps 25% to 35%, depending on the real estate commission and other closing costs to be incurred. According to Iberia, the dividend could also be impacted significantly by any decision by the Debtor on whether to assume or reject the management contracts with Multifamily Management, Inc. By Court Order dated June 25, 2015, the Court granted the Debtor's motion to assume the management contracts with Multifamily. In the motion, the Debtor represented that Multifamily would continue managing the Properties without the cure of the default. In the absence of an Order to the contrary, Iberia's Plan calls for rejection of those management contracts. IberiaBank notes that should the sale be consummated, holders of allowed general unsecured claims will be paid a pro rata share of the excess cash proceeds realized after payment of higher priority claims, i.e., allowed administrative priority claims, priority tax claims, the claim of Iberia and the claim of the Small Business Administration. The claims of Lamond Whitten and Louisiana Rental Investors were disputed by the Debtor in its schedules, and they have failed to file proofs of claim before the expiration of the July 31 bar date. Accordingly, these insider claims will receive nothing under Iberia's plan if the sale to Juniper is consummated. Similarly, any equity interest in the Debtor, a non-profit corporation with no shareholders, will be terminated with nothing paid on account of those interests Sale and Settlement IberiaBank holds a first mortgage on the Properties, as well as a priming security interest in rents and cash proceeds. Its total indebtedness, represented by three separate notes, is in excess of $10.2 million, not taking into account postpetition interest and attorneys' fees as an "oversecured" creditor within the meaning of Section 506 of the Bankruptcy Code. The Small Business Administration holds a second mortgage on substantially all of the Debtor's assets and is owed approximately $1.5 million. Originally, Courtyard Orleans was owned by Foundation/Courtyard Orleans, LLC, a Louisiana limited liability company whose sole member is WF. The Unit 9 property was formerly owned by Louisiana Rental Investors, LLC, whose sole member is Lamond Whitten. WF was and remains the owner of Embers. Iberia consented to the prepetition transfers to WF to help facilitate one bankruptcy filing and a more efficient series of real estate sale transactions. Indeed, Iberia believes the value of Courtyard Orleans is substantially less than the $3.5 million offered by Juniper if it is not included as part of a package deal with the more desirable Embers property. The Properties are being managed currently by Multifamily Management, Inc. Multifamily has also filed an unsecured claim for unpaid management fees in the approximate amount of $490,000. Pat Coffey is the owner of Multifamily and is also the Debtor in Possession representative. The Debtor cannot service its secured debts to Iberia and the SBA. A mutual decision was made that the Properties would be sold in a non-fire sale manner so that creditors could be paid as much as possible. Upon information and belief, the proposed sale to Juniper represents a reasonable market value for the Properties, Iberia tells the Court. One of the reasons why Iberia has filed this creditor-sponsored plan is its understanding that the Debtor would like to continue marketing efforts rather than concentrate on consummating the sale to Juniper. Prior to the filing of this voluntary bankruptcy, clear title to the Courtyard Orleans and Unit 9 properties was impeded by a series of tax sale purchases by Boardwalk Investors US Bank, d/b/a Boardwalk Investors and Josie Mack in 2011. Upon information and belief, at least $56,000 in unpaid taxes and interest have been paid by these parties. The Debtor failed to redeem the taxes within the three years allowed by applicable Louisiana law. Boardwalk filed a lawsuit in the 19th Judicial District Court for East Baton Rouge Parish styled "Petition to Quiet Title" and that is pending. Boardwalk and Mack now own these small portions of the whole and Boardwalk is demanding market value for its property rather than merely reimbursement of actual taxes paid. Upon information and belief, the value of Boardwalk's property is somewhere between $100,000 and $220,000. Iberia is unaware of any demand made by Mack but the total paid by Mack, upon belief, is approximately $1,000. Iberia's Plan presupposes a settlement of the Lawsuit with Boardwalk and any ownership claims by Mack in order to complete the $12.5 million sale to Juniper. Iberia has committed to making a postpetition super-priority loan to the Debtor in the amount of no more than $150,000 for that purpose, with further consent to the use of its cash collateral to make up any difference over and above $150,000. Based on the last operating report by the Debtor, the Debtor has in excess of $100,000 in cash on hand. In essence, Iberia's Plan is a two-step approach -- the settlement with the tax purchasers and the sale to Juniper. A copy of IberiaBank's First Amended Disclosure Statement filed Sept. 9, 2015, is available for free at: http://bankrupt.com/misc/Whitten_F_IberiaB_Am_DS.pdf IberiaBank is represented by: Michael A. Crawford, Esq. Brett P. Furr, Esq. TAYLOR, PORTER, BROOKS & PHILLIPS, LLP Post Office Box 2471 451 Florida Street, 8th Floor Baton Rouge, LA 70821-2471 Tel: (225)381-0223 Fax: (225)346-8049 About Whitten Foundation Whitten Foundation is a non-profit corporation that owns and operates two apartment/condominium properties located in Lake Charles and Baton Rouge in the State of Louisiana. The Lake Charles property is referred to as "Embers" and the Baton Rouge property is referred to "Courtyard Orleans." A third property, referred to as "Unit 9" is located at the Courtyard Orleans site in Baton Rouge but it is a single condominium. Whitten Foundation sought Chapter 11 bankruptcy protection (Bankr. W.D. La. Case No. 15-20237) in Lake Charles, Louisiana, on March 31, 2015. The Debtor estimated $10 million to $50 million in assets and debt. Judge Robert Summerhays presides over the case. The Debtor has tapped Gerald J. Casey, Esq., in Lake Charles, Louisiana, as its counsel. The U.S. trustee overseeing Whitten Foundation's Chapter 11 case said it wasn't able to form a committee of unsecured creditors due to insufficient number of creditors willing to serve on the committee. XZERES CORP: Paul DeBruce Reports 26.5% Stake as of Aug. 28 ----------------------------------------------------------- In an amended Schedule 13D filed with the Securities and Exchange Commission, Paul DeBruce disclosed that as of Aug. 28, 2015, he beneficially owned 20,822,618 shares of common stock of XZERES Corp., which represents 26.57 percent based upon 72,768,897 shares of Common Stock issued and outstanding on July 15, 2015. On June 9, 2015, in a private placement transaction, Mr. DeBruce, invested $2,380,000 in the Issuer in exchange for the issuance to the reporting person of 1,190 shares of the Issuer's Series B Participating Preferred Stock, with $198,350 of that investment in the Issuer being satisfied pursuant to the conversion of a Demand Convertible Subordinated Secured Promissory Note dated as of May 27, 2015, issued by the Issuer to the reporting person and the remaining balance being provided in cash from the reporting person's personal funds. A copy of the regulatory filing is available for free at: http://is.gd/jKNLyu About XZERES Corp. Headquartered in Wilsonville, Oregon, XZERES Corp. designs, develops, and markets distributed generation, wind power systems for the small wind (2.5kW-100kW) market as well as power management solutions. Xzeres reported a net loss of $10.7 million on $4.4 million of gross revenues for the year ended Feb. 28, 2015, compared to a net loss of $9.5 million on $4 million of gross revenues for the year ended Feb. 28, 2014. As of May 31, 2015, the Company had $6.80 million in total assets, $18.2 million in total liabilities, and a stockholders' deficit of $11.4 million. KLJ & Associates, LLP, in Edina, MN, issued a "going concern" qualification on the consolidated financial statements for the year ended Feb. 28, 2015, citing that the Company has incurred losses from operations, has negative working capital and is in need of additional capital to grow its operations. These factors raise substantial doubt about the Company's ability to continue as a going concern. YARWAY CORP: Sets Oct. 19 Deadline for Filing Admin Expense Claims ------------------------------------------------------------------ Yarway Corp. announced in a court filing that it has scheduled a deadline of October 19 for filing administrative expense claims against the company. Claims include those held by bankruptcy professionals who provided services before the company's Chapter 11 reorganization plan took effect. Yarway, which filed for Chapter 11 protection in April 2013, officially emerged from bankruptcy on August 19 this year. The company had said last month that its restructuring plan had been "substantially consummated." U.S. Bankruptcy Judge Brendan Linehan Shannon confirmed the plan on April 8. On July 14, the U.S. District Court in Delaware affirmed the bankruptcy judge's order, court filings show. The centerpiece of the plan, which was co-sponsored by Yarway's parent Tyco International plc, was the establishment of a so-called Asbestos Personal Injury Trust funded primarily with $325 million in cash contributed by the companies. A copy of the document detailing how the restructuring plan was implemented is available for free at http://is.gd/e2cM0i About Yarway Corporation Yarway Corporation sought Chapter 11 protection (Bankr. D. Del. Case No. 13-11025) on April 22, 2013, to deal with claims arising from asbestos containing products it allegedly sold as early as the 1920s. Yarway was founded in 1908 by Robert Yarnall and Bernard Waring as the Simplex Engineering Company and originally manufactured pipe clamps, steam traps, valves and controls. Based in Pennsylvania, Yarway was a privately-owned company until 1986 when KeyStone International, Inc. bought equity in the company. Yarway became a unit of Tyco International Ltd. when Tyco purchased KeyStone in 1997. Yarway's asbestos-related liabilities derive from Yarway's (i) purported use of asbestos-containing gaskets and packing, manufactured by others, in its production of steam valves and traps from the 1920s to 1970s, and (ii) alleged manufacture of expansion joint packing that was allegedly made up of a compound of Teflon and asbestos from the 1940s to the 1970s. Over the past five years, about 10,021 new asbestos claims have been asserted against Yarway, including 1,014 in Yarway's 2013 fiscal year ending March 31, 2013. The Debtor estimated assets and debts in excess of $100 million as of the Chapter 11 filing. Attorneys at Cole, Schotz P.C. and Sidley Austin LLP serve as the Debtor's counsel in the Chapter 11 case. Logan and Co. is the claims and notice agent. On May 6, 2013, the U.S. Trustee for Region 3, appointed an official committee of asbestos personal injury claimants. The Committee tapped Elihu Inselbuch, Esq., at Caplin & Drysdale, Chartered, as lead bankruptcy counsel. [*] 10 Lateral Attorneys Join SmithAmundsen's Indianapolis Office ----------------------------------------------------------------- The law firm of SmithAmundsen continues aggressive growth in Indiana adding 10 lateral attorneys in less than three months to its Indianapolis office. This significant expansion makes the firm's Indianapolis office its second largest and firmly cements SmithAmundsen's position as a law firm to watch in the region. Attorneys across the Midwest are regularly moving to SmithAmundsen to join its supportive and inclusive culture, mindful client service focus and a collaborative environment. SmithAmundsen attorneys put the client first with a commitment to work as a business partner rather than just a service provider. "SmithAmundsen's way of doing business is refreshing in the legal marketplace," said Stephen Stitle, a partner in the firm's Indianapolis office with more than 40 years of business and legal experience. "Many larger firms seem to have lost their way in terms of innovating and adapting to a rapidly changing market. SmithAmundsen provides the support my colleagues need to thrive rather than merely survive as attorneys." "These very talented lawyers are a great acquisition for our firm and they're an important part of our strategic growth to serve the broad needs of our clients," said firm founder and Executive Committee Chairman, Glen Amundsen. "These additions continue our mantra – Top Flight Counsel, Bottom Line Results." These 10 experienced attorneys join established intellectual property attorneys Constance Lindman, Dennis Schell, Eric Lamb, Kelly Smith and Gabriel Applegate as well as litigator Jeanne Hamilton and labor and employment attorney Suzanne Newcomb in the Indianapolis office. Stephen Stitle Stephen Stitle, Indianapolis managing partner, is a member of the firm's banking and financial institutions and business and transactions groups. He is the former Chairman of PNC Bank, Indiana and the former President of National City Bank in Indiana and Executive Vice President of National City Corporation. He held executive positions at Eli Lilly and Company for nearly 25 years where he was Secretary and Deputy General Counsel, President of Lilly Canada; President of Hybritech, a Lilly subsidiary in San Diego; Vice President of Global Human Resources; Vice President of Global Corporate Affairs and head of Lilly's Washington office. He currently serves on the board of directors for Central Indiana Corporate Partnership; Center for Leadership Development; Past Chair Greater Indianapolis Chamber of Commerce; Past Chair Indiana University Foundation; St. Vincent's Heart Center of Indiana; Simon Youth Foundation; and Develop Indy. Additionally he sits on the board of trustees of Junior Achievement of Central Indiana. John Tanselle John Tanselle, partner, Banking & Financial Institutions, has more than 30 years of experience counseling the management of financial institutions and their boards of directors with respect to general corporate matters, corporate governance issues, securities law compliance, regulatory compliance, regulatory enforcement situations and executive compensation issues. Mr. Tanselle acted as chair of the Financial Institutions Practice Group and served as a member of the Executive Committee of the law firm of Krieg DeVault before joining SmithAmundsen. He currently serves on the board of directors of the Methodist Health Foundation and Christian Theological Seminary in Indiana. Martha Lehman Martha Lehman, partner, Insolvency & Restructuring, handles all facets of bankruptcy and insolvency representation including secured lenders, unsecured creditors, creditors' committees and debtors. She is board certified in the area of Business Bankruptcy by the American Board of Certification. Debra Mastrian Debra Mastrian, partner, Labor & Employment, represents management in a variety of matters, including wage and hour violations and retaliation claims, and she prosecutes and defends claims involving non-compete and non-solicitation agreements, misappropriation of trade secrets, and other forms of unfair competition. She defends collective and class actions, including FLSA collective actions and represents employers in proceedings before the Equal Employment Opportunity Commission, the U.S. Department of Labor, U.S. Department of Housing and Urban Development, and the Indiana Civil Rights Commission, among other agencies. Melinda Shapiro Melinda Shapiro, partner, Health Care, defends medical professionals and health care providers in litigation and enforcement proceedings before state and federal courts, and before government agencies and counsels health care providers in developing proactive risk-management approaches. She currently serves as board president of Hooverwood Nursing Home in Indiana and formerly served on the board of the Indiana Chamber of Commerce. Gina Thompson Gina Thompson, partner, Health Care, is an attorney and a registered nurse. Her twenty year career in health care has supplied her with an extensive background in all matters affecting health care providers including hospitals and health care systems, physicians and provider groups, home health and hospice agencies, and more. She counsels clients on matters relating to compliance, regulations and standards and she assists clinical, operational, and executive leaders with the interpretation and application of state and federal rules and health care regulations. Ms. Thompson is formerly Executive Director of IU Health Regulatory Affairs. Larry Tomlin Larry Tomlin, partner, Banking & Financial Institutions, represents commercial banks, thrifts, bank holding companies and public and private corporations. He advises financial institutions on matters including dealing with bank regulatory agencies, responding to adverse regulatory examinations, and the implementation of new regulations under the Dodd–Frank Wall Street Reform and Consumer Protection Act. Mr. Tomlin currently serves of the board of directors for the Young Audiences of Indiana. Mark Wenzel Mark Wenzel, partner, Insolvency & Restructuring, counsels creditors, debtors and investors. He is board certified in the area of Business Bankruptcy by the American Board of Certification. He is former chair of the Indianapolis Bar Association, commercial law and bankruptcy section. Laura Bonadies Laura Bonadies, associate, Health Care, defends nursing homes, transitional care facilities, hospitals, and other health care providers in medical malpractice litigation. Philip List Philip List, associate, Health Care, represents health care providers in medical malpractice litigation. Outside the office, Mr. List volunteers his time with the Hugh O'Brian Youth Leadership Foundation Indiana and Back on My Feet Indianapolis. About Smithamundsen SmithAmundsen -- http://www.salawus.com/-- is a law firm comprised of more than 150 attorneys practicing from offices in Chicago, St. Charles, Rockford and Woodstock, IL; Indianapolis, IN; St. Louis, MO; and Milwaukee, WI. The firm handles the transactional, labor and employment and litigation needs of companies across the U.S. [*] American Sectors Face Significant Exposure to China Slowdown ---------------------------------------------------------------- Non-financial companies within the metals and mining, oil and gas, chemicals, steel, auto manufacturing and gaming sectors in the Americas are materially exposed to China's slowing economy, says Moody's Investors Service. "The sectors most at risk have either the highest proportion of revenues generated in China or a high level of indirect exposure," said Tom Marshella, a Moody's Managing Director. "The metals and mining sector, for instance, is directly exposed in terms of both export volumes and the knock-on effect of lower prices, while the oil and gas sector is vulnerable to the indirect impact of Chinese demand on prices." China accounted for about half of global consumption of key base metals in 2014, suggesting significant risk for the industry amid weak Chinese demand, according to the report, "Non-Financial Corporates - Americas: China Exposure Significant for Some, But Immaterial for Most." Similarly, weak demand in China could drag down volumes, prices and margins in the oil and gas sector. A steeper-than-expected slowdown in Chinese GDP growth could delay improvement in the credit profiles of major US auto manufacturers. Weak demand in China could also exacerbate the existing supply-demand imbalances in the chemicals, steel and gaming sectors. Leading casino operators have significant exposure to the Macau market. Moody's maintains its GDP growth forecast of 6.8% for China in 2015, but has slightly revised its forecast for 2016 to 6.3% from 6.5%. In subsequent years, China's GDP growth is likely to slow towards 6%. "While this represents a significant slowdown over previous years, China's GDP growth rate still remains well ahead of most developed countries, with further policy support likely to keep the economic slowdown gradual," added Marshella. Industries that have modest exposure to China's slowing economy include semiconductor, electronics manufacturing services, commercial aerospace, auto parts, consumer products, drug/medical device and manufacturing. Those with little to no exposure are restaurants, paper and forest products, diversified technology, payment processors, retail, telecom, cable/media and airlines. [*] Fitch: US Energy Debt Exchanges Provide Little Interest Relief ------------------------------------------------------------------ The majority of recent distressed debt exchanges (DDEs) in the energy space have provided limited interest relief to high-yield E&P companies, according to Fitch Ratings. In several cases, outside of the exchange transaction itself, additional secured debt was issued, increasing total cash interest costs. As the overall interest relief provided in these transactions was limited, in a lower-for-longer commodity price environment, further restructurings may be needed to right-size capital structures, highlighting continuing risks for unsecured bond holders. Exchanges to date have generally fallen into two types; exchanges that swap unsecured debt for higher priority secured claims or equity, with limited impact on overall liquidity, and exchanges where incremental second- or third-lien debt is issued, generating liquidity at the cost of higher interest expense. Liquidity-neutral exchanges have primarily reduced unsecured principal balances without significant reductions in annual interest costs, lowering pro forma leverage metrics while not materially improving cost structures or interest coverage. An example includes Halcon Resources (HK) third-lien exchange in August, which lowered balance sheet debt by approximately $550 million on a base of $3.89 billion in debt at March 31, 2015, but produced pro forma annual interest savings of just $12 million, or less than $1 per barrel of oil equivalent (boe) based on run-rate production of 15.5 million boe per year. Liquidity-enhancing transactions have created a cash buffer for several high-yield names, including Midstates Petroleum (MPO) and Sandridge Energy (SD). For example, MPO's debt exchange in May converted $630 million in unsecured notes into $504 million of third-lien notes (10% coupon with 2% PIK feature), resulting in annual interest savings to the company of $15 million assuming exercise of the PIK feature. Concurrently, MPO's second-lien issuance bolstered liquidity by adding cash to the balance sheet. However, when accounting for interest costs associated with the company's second-lien debt, total interest costs increased by $47 million per year, or approximately $2/boe. It is important to note that the capital markets window that allowed a number of the liquidity-enhancing second- and third-lien note deals to be done was open for a relatively brief period earlier this year when oil prices spiked up, but has since remained closed. In these transactions, liquidity has come at the cost of higher interest costs per boe, decreasing the competitiveness of the company's cost structure in the short run. For companies making this trade-off, a return to higher oil and gas prices or additional reductions in operating costs may be necessary to overcome higher interest burdens. In general, interest costs of over $10/boe are indicative of aggressive capital structures and serve to lower competiveness, given the inability to lower these costs outside of restructuring activities or production growth, which is less likely in a commodity downcycle. [*] Former Greenberg Traurig Lawyer Loesberg Joins Kelley Drye --------------------------------------------------------------- Kelley Drye & Warren LLP said Michael J. Loesberg has joined the firm as a partner, based in its New York office. Mr. Loesberg represents national and international banks and other financial institutions, finance companies and hedge funds in syndicated and single-lender loan transactions, asset-based lending and other commercial lending matters, including revolving loans, term loans and letters of credit, multi-currency transactions, cross-border transactions and intercreditor arrangements. He also advises on business reorganization and financial restructuring transactions, including debtor-in possession financing and exit financing. He joins Kelley Drye from Greenberg Traurig, LLP, where he was a shareholder. Mr. Loesberg began his career as law clerk to The Honorable Geraldine Mund of the United States Bankruptcy Court for the Central District of California. "We are thrilled to have Mike Loesberg join Kelley Drye's growing corporate practice," said Timothy R. Lavender, chair of Kelley Drye's national Corporate Practice. "Mike's experience advising financial institutions on middle-market transactions expands our group's capabilities, allowing us to better serve clients in this area." "Kelley Drye's reputation as a firm that handles matters with a personal touch complements the needs of my clients and the nuances of their transactions. I look forward to joining this team of top corporate and finance lawyers," said Mr. Loesberg. Mr. Loesberg received his J.D. with Honors from George Washington University Law School and his B.A. cum laude from Colgate University. [^] Recent Small-Dollar & Individual Chapter 11 Filings ------------------------------------------------------- In re Robert M. Gerstein Bankr. C.D. Cal. Case No. 15-13016 Chapter 11 Petition filed September 10, 2015 In re James Richard Evanoff and Victoria Ann Evanoff Bankr. N.D. Ill. Case No. 15-30868 Chapter 11 Petition filed September 10, 2015 In re Annette McClain-Betley Bankr. E.D. Mich. Case No. 15-53407 Chapter 11 Petition filed September 10, 2015 In re Raymond Edward Brannen and Kathy Ann Brannen Bankr. D. Nev. Case No. 15-15211 Chapter 11 Petition filed September 10, 2015 In re Uprising Realty Corp. Bankr. E.D.N.Y. Case No. 15-44164 Chapter 11 Petition filed September 10, 2015 See http://bankrupt.com/misc/nyeb15-44164.pdf represented by: Peter M. Zirbes, Esq. PETER M. ZIRBES, ESQ., P.C. E-mail: pmzesq@aol.com In re King Center Corp., an unincorporated company/business association Bankr. E.D.N.Y. Case No. 15-44165 Chapter 11 Petition filed September 10, 2015 See http://bankrupt.com/misc/nyeb15-44165.pdf represented by: Howard J. Berman, Esq. ELLENOFF GROSSMAN & SCHOLE, LLP E-mail: hberman@egsllp.com In re Q & O Estates Inc. Bankr. E.D.N.Y. Case No. 15-44168 Chapter 11 Petition filed September 10, 2015 See http://bankrupt.com/misc/nyeb15-44168.pdf Filed Pro Se In re Mazor's Bakery LLC Bankr. E.D.N.Y. Case No. 15-44176 Chapter 11 Petition filed September 10, 2015 See http://bankrupt.com/misc/nyeb15-44176.pdf represented by: Alla Kachan, Esq. LAW OFFICES OF ALLA KACHAN, P.C. E-mail: alla@kachanlaw.com In re Glen S. Kay, M.D., P.C. dba OMNI Medical Care Bankr. S.D.N.Y. Case No. 15-36669 Chapter 11 Petition filed September 10, 2015 See http://bankrupt.com/misc/nysb15-36669.pdf represented by: Thomas Genova, Esq. GENOVA & MALIN E-mail: genmallaw@optonline.net In re Zaler Pop Holdings of Youngstown, LLC Bankr. N.D. Ohio Case No. 15-41652 Chapter 11 Petition filed September 10, 2015 See http://bankrupt.com/misc/ohnb15-41652.pdf represented by: Andrew W. Suhar, Esq. SUHAR & MACEJKO, LLC E-mail: asuhar@suharlaw.com In re Ross Alan Day and Shelley Juline Day Bankr. D. Or. Case No. 15-63077 Chapter 11 Petition filed September 10, 2015 In re Day Law Group, P.C. Bankr. D. Or. Case No. 15-63078 Chapter 11 Petition filed September 10, 2015 See http://bankrupt.com/misc/orb15-63078.pdf represented by: Ross Alan Day, Esq. DAY LAW GROUP, P.C. E-mail: ross@daylawpc.com In re Thierry J. Soursac Bankr. E.D. Pa. Case No. 15-16512 Chapter 11 Petition filed September 10, 2015 In re Academia Del Parque Inc. Bankr. D.P.R. Case No. 15-06984 Chapter 11 Petition filed September 10, 2015 See http://bankrupt.com/misc/prb15-06984.pdf represented by: Miriam A. Murphy, Esq. MURPHY LAW OFFICE E-mail: mamurphyli82@gmail.com In re Douglas Howard Lacey and Laura Anne Lacey Bankr. W.D. Wash. Case No. 15-15449 Chapter 11 Petition filed September 10, 2015 In re Sheri Lou Pearce and Robert Raymound Pearce Bankr. D. Colo. Case No. 15-20229 Chapter 11 Petition filed September 11, 2015 In re Muhammad J. Toor Bankr. D. Conn. Case No. 15-51292 Chapter 11 Petition filed September 11, 2015 In re Meridian Medical Systems LLC Bankr. D. Me. Case No. 15-20640 Chapter 11 Petition filed September 11, 2015 See http://bankrupt.com/misc/meb15-20640.pdf represented by: Bruce B. Hochman, Esq. EATON PEABODY E-mail: bhochman@eatonpeabody.com In re Four Rivers Land Company Bankr. D. Md. Case No. 15-22683 Chapter 11 Petition filed September 11, 2015 See http://bankrupt.com/misc/mdb15-22683.pdf represented by: Geri Lyons Chase, Esq. LAW OFFICE OF GERI LYONS CHASE E-mail: gerichase@verizon.net In re Rajesh Nedungadi Bankr. D. Md. Case No. 15-22704 Chapter 11 Petition filed September 11, 2015 In re Delta Radio Network, LLC Bankr. N.D. Miss. Case No. 15-13216 Chapter 11 Petition filed September 11, 2015 See http://bankrupt.com/misc/msnb15-13216.pdf represented by: Jeffrey A. Levingston, Esq. LEVINGSTON & LEVINGSTON, P.A. E-mail: jleving@bellsouth.net In re Delta Radio, LLC Bankr. N.D. Miss. Case No. 15-13217 Chapter 11 Petition filed September 11, 2015 See http://bankrupt.com/misc/msnb15-13217.pdf represented by: Jeffrey A. Levingston, Esq. LEVINGSTON & LEVINGSTON, P.A. E-mail: jleving@bellsouth.net In re Paul Thompson and June Thompson Bankr. S.D.N.Y. Case No. 15-12530 Chapter 11 Petition filed September 11, 2015 In re Debra L. Russell Bankr. W.D. Pa. Case No. 15-23345 Chapter 11 Petition filed September 11, 2015 In re Laura Cecelia Roy Bankr. W.D. Pa. Case No. 15-23364 Chapter 11 Petition filed September 11, 2015 In re Mid-South Auto Auction, Inc. Bankr. E.D. Tenn. Case No. 15-32755 Chapter 11 Petition filed September 11, 2015 See http://bankrupt.com/misc/tneb15-32755.pdf represented by: Thomas Lynn Tarpy, Esq. TARPY, COX, FLEISHMAN & LEVEILLE, PLLC E-mail: ltarpy@tcflattorneys.com In re Timothy M. Wooters Bankr. S.D. Tex. Case No. 15-80332 Chapter 11 Petition filed September 11, 2015 In re Kevin William Kliefoth Bankr. W.D. Tex. Case No. 15-11194 Chapter 11 Petition filed September 11, 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 ***