/raid1/www/Hosts/bankrupt/TCR_Public/151125.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Wednesday, November 25, 2015, Vol. 19, No. 329
Headlines
401 LASALLE LENDERS: Voluntary Chapter 11 Case Summary
ALPHA NATURAL: Has Stipulation on Proceeds From Helicopter Sale
AMAYA INC: S&P Revises Outlook to Negative & Affirms 'BB-' CCR
AMERICAN APPAREL: $90 Million Financing Has Final Approval
AMERICAN APPAREL: Says It Addressed Panel's Disclosure Concerns
AMERICAN EAGLE: Reports $59.2M Net Loss in Quarter Ended Sept. 30
AMPLIPHI BIOSCIENCES: Two Directors Appointed to Board
ARIEL FUND: Court Approves 10th Interim Cash Distribution
ASSOCIATED WHOLESALERS: Has Until Dec. 30 to File Plan
ATLANTIC & PACIFIC: Granted Until March to File Bankruptcy Plan
ATNA RESOURCES: Has Interim OK to Obtain $4-Mil. DIP Financing
ATNA RESOURCES: Wants Jan. 16 Deadline to File Schedules
BLB WORLDWIDE: Twin River's Bid for Summary Judgment Granted
BOISE CASCADE: S&P Affirms 'BB-' CCR, Outlook Remains Stable
BROADWAY FINANCIAL: Posts $979,000 Net Income for Third Quarter
BUNKERS INTERNATIONAL: Court Denies UFS Bid to Recover $84K Payment
CAA HOLDINGS: S&P Assigns 'B+' CCR, Outlook Stable
CAESARS ENTERTAINMENT: Judge Can't Stop on $364M Pension Dispute
CANCER GENETICS: Empery Asset Reports 6.49% Stake as of Nov. 6
CANCER GENETICS: Hal Mintz Reports 8.4% Stake as of Nov. 6
CANCER GENETICS: Reports Third Quarter 2015 Results
CLARKE'S ALLIED: Case Summary & 20 Largest Unsecured Creditors
CLIFFS NATURAL: Casablanca Capital Has 4.7% Stake as of Nov. 6
CRAILAR INC: Seeks U.S. Recognition of CCAA Reorganization
DEB STORES: Seeks to Pay $40K Postpetition Rent to Westfield
DIAMONDHEAD CASINO: Court Denies Request for Interim Trustee
DIOCESE OF GALLUP: Lawyers Say Deal in Bankruptcy Case Near
DOMARK INTERNATIONAL: BNY Mellon Has 19% Stake as of Oct. 31
DORSEY BUILDERS: Findlay Park to Be Auctioned on Dec. 10
EDENOR SA: Extends Technical Advisory Contract with EASA
EPWORTH VILLA: Has Until Dec. 18 to File Chapter 11 Plan
ESSAR STEEL: Ontario Court Grants CCAA Initial Order
EXCELITAS TECHNOLOGIES: Moody's Affirms B3 CFR, Outlook Negative
EXELIXIS INC: Incurs $47.5 Million Net Loss in Third Quarter
EYELOGIC SYSTEMS: Voluntary Delists Shares, Plans Wind-Up
F-SQUARED INVESTMENT: AlphaSector Okayed Dissolve Hedge Fund
F-SQUARED INVESTMENT: Has Until Jan. 4 to Remove Civil Actions
FIRST DATA: Offering 160 Million Class A Common Stock
FRAC SPECIALISTS: $229,000 Sale of Vehicles Approved
FRAC SPECIALISTS: Court Approves $474,000 Sale of Disposal Units
GENERAL MOTORS: Groups Ask 2nd Circ. to Reverse Protection Ruling
GENESYS RESEARCH: U.S. Asks for Time to Request Application Title
GLOBAL MARITIME: Wants to Hire Gardere Wynne as Counsel
HARDEMAN COUNTY: Plan of Adjustment Confirmed
HCSB FINANCIAL: Incurs $146,000 Net Loss in Third Quarter
HONEY BEE USA: Files for Chapter 11 Bankruptcy Protection
HOVENSA LLC: Creditors Want to Probe Owner Hess Corp. on Solvency
HOWREY LLP: Bankruptcy Case Converted to Chapter 7 Liquidation
HYDROCARB ENERGY: Charles Dommer to Serve as President Until 2016
HYDROCARB ENERGY: Geoserve to Provide Investor Relations Services
HYDROCARB ENERGY: Sells JSJ Investments $350,000 Note
HYDROCARB ENERGY: Sold $832,000 Notes to Adar and Union
JOE'S JEANS: Amends Third Quarter Form 10-Q to Correct Error
KITTUSAMY LLP: Estate Needs Chapter 11 Trustee, Creditors Assert
LEADFX INC: Sprott Extends Forbearance Period Until Dec. 15
LEVEL 3: Completes Offering of $900 Million Senior Notes due 2024
LEVEL 3: Implements Majority Voting Standard for Directors
LIGHT TOWER: Moody's Lowers CFR to B3; Outlook Negative
M/I HOMES: Moody's Raises CFR to B1 & Changes Outlook to Stable
MORRISON INFORMATICS: Union Opposes Bid to Add Trustee as Plaintiff
MOUNTAIN PROVINCE: Files Q3 Management's Discussion and Analysis
NEWARK WATERSHED: Claims Corruption Under Ex-Chairman Cory Booker
NNN DORAL: Receiver Excused to Turnover Bankruptcy Estate Property
NRAD MEDICAL: Court Approves Amendment in Bankruptcy Case Caption
NRAD MEDICAL: Farrell Fritz Okayed as Counsel for Creditors' Panel
O.W. BUNKER: Court Approves Disclosure Statement
O.W. BUNKER: To Seek Confirmation of Liquidation Plan Dec. 10
OLGA'S KITCHEN: Team Schostak Outbids Cosmo Hospitality for Assets
OW BUNKER: Has Until Nov. 30 to Solicit Plan Acceptances
PACIFIC RECYCLING: Calbag Supply and Loan Agreement Approved
PACIFIC RECYCLING: Final Cash Collateral Order Entered
PEABODY ENERGY: Stock Price Surges Following Sale Announcement
PREMIER EXHIBITIONS: Gets Delisting Notice from Nasdaq
PREMIER EXHIBITIONS: Mark Sellers Quits as Director
PUTNAM ENERGY: Court Denies Bid for Exclusive Period Extension
QUIRKY INC: Creditors' Meeting Adjourned to Dec. 1
QUIRKY INC: Judge to Hold Hearing on Asset Sale on Dec. 7
RELATIVITY MEDIA: Has Until Feb. 1 to Propose Chapter 11 Plan
SABINE OIL: Creditors Have Until Dec. 22 to File Proofs of Claim
SABINE OIL: Has Until Feb. 10 to Decide on Unexpired Leases
SAMSON RESOURCES: Judge Denies Instant Bonus for Resigning CEO
SCHUPBACH INVESTMENTS: 10th Cir. Affirms Reversal on Lazzo's Fees
SEANERGY MARITIME: Announces Delivery of 2 Capesize Vessels
SEBRING SOFTWARE: Retainer Agreement with Bailey Glasser Approved
SIERRA HAMILTON: Moody's Lowers CFR to Caa3, Outlook Negative
SOUTHERN REGIONAL: Court Extends Exclusive Right to File Plan
SOUTHERN REGIONAL: Waller Represents Passport Health & RBHS
SOUTHERN REGIONAL: Wiles & Wiles Represents Spivey Entities
SPECIALTY PRODUCTS: Has Until Jan. 22, 2016 to Object to Claims
TARGET CANADA: RioCan Enters Into Settlement Agreement with Parent
TARGETED MEDICAL: Incurs $238K Net Loss in Third Quarter
TAYLOR WHARTON: Worthington to Acquire CryoScience Business
TAYLOR-WHARTON INT'L: Unsecured Creditors Attack Key Worker Deal
TENET HEALTHCARE: Glenview Reports 17.9% Stake as of Nov. 12
TERRAFORM POWER: Moody's Lowers Corporate Family Rating to B2
TIAN RECLAMATION: Case Summary & 20 Largest Unsecured Creditors
TRANS COASTAL: Final Cash Collateral Order Entered
TRANS-LUX CORP: Posts $173,000 Net Income for Third Quarter
TRANS-LUX CORP: Transtech Has 21.5% Stake as of Nov. 13
TRAVELPORT WORLDWIDE: Announces 10M Common Shares Offering
TRAVELPORT WORLDWIDE: Gets $12-Mil. From Common Shares Offering
TRUMP ENTERTAINMENT: Hikes DIP Financing to $39.1 Million
TS EMPLOYMENT: Chapter 11 Trustee Taps Duff & Phelps as Accountant
VIAWEST INC: Moody's Affirms B2 Term Loan Rating Following Add-On
VIVARO CORP: Objections to Breezecom Claims
WAFERGEN BIO-SYSTEMS: Reports Results for Third Quarter 2015
WHISKEY ONE: Court Refuses to Review Yumkas Vidmar Hiring
ZOHAR CDO 2003-1: Patriarch Wants Exclusive Periods Terminated
[*] Alex Catto Joins Greenberg Traurig's NY Office
[*] Dorsey Wins M&A Advisor Award for Real Estate Deal of the Year
[*] Top BLaw360's 100 Firms Among 10 Mightiest Bankruptcy Practice
*********
401 LASALLE LENDERS: Voluntary Chapter 11 Case Summary
------------------------------------------------------
Debtor: 401 LaSalle Lenders LLC
401 S. LaSalle Street, Suite 203
Chicago, IL 60605
Case No.: 15-39922
Chapter 11 Petition Date: November 23, 2015
Court: United States Bankruptcy Court
Northern District of Illinois (Chicago)
Judge: Hon. Timothy A. Barnes
Debtor's Counsel: Karen J Porter, Esq.
PORTER LAW NETWORK
230 West Monroe, Suite 240
Chicago, IL 60606
Tel: 312-372-4400
Fax: 312-372-4160
Email: porterlawnetwork@gmail.com
Estimated Assets: $10 million to $50 million
Estimated Debts: $10 million to $50 million
The petition was signed by First Chicago Financial, LLC, manager.
The Debtor did not include a list of its largest unsecured
creditors when it filed the petition.
ALPHA NATURAL: Has Stipulation on Proceeds From Helicopter Sale
---------------------------------------------------------------
Alpha Natural Resources, Inc., reached an agreement with creditors
on the $605,000 sale of its Bell 427 helicopter and certain related
equipment.
On Oct. 14, 2015, the Debtors provided notice of the proposed
private sale by debtor Alpha Natural Resources Services, LLC, of a
Bell 427 helicopter and certain related equipment and other
property, including, without limitation, any and all records
related thereto. In consideration for the Helicopter, the
purchaser, Flying Fish Helicopters, LLC, will provide the Seller
with $564,150 in cash consideration, which consists of aggregate
cash consideration of $605,000 less a broker's commission in the
amount of $40,000 and escrow fees in the amount of $850.
The Court's Oct. 8, 2015 Cash Management Order requires the Debtors
to establish a separate bank account -- Segregated Account -- to
receive certain cash funded from cash currently in the Debtors'
Money Market Account.
After discussion regarding the proposed sale, the parties have
agreed that:
-- The Lenders and the Official Committee of Unsecured Creditors
do not object to the Proposed Sale.
-- The Purchaser will take title to the Helicopter free and clear
of any liens, claims, encumbrances and other interests.
-- All valid liens, claims, encumbrances and other interests in
the Helicopter, if any, will attach to the Net Proceeds with the
same validity, enforceability and priority as with respect to the
Helicopter.
-- Promptly following the establishment of the Segregated
Account, the Debtors will deposit cash in the Segregated Account
over and above the amounts to be deposited pursuant to the terms of
the Cash Management Order in the amount of the Net Proceeds.
-- Each of the Parties reserves its respective rights with
respect to the Segregated Proceeds.
Aside from the Debtors, the signatories to the stipulation are the
official committee of unsecured creditors appointed in the chapter
11 cases; Citibank, N.A. and Citicorp North America, Inc., as
administrative and collateral agents under the Debtors'
postpetition credit facility; Citicorp North America, Inc., as
administrative and collateral agent under the Debtors' prepetition
secured credit facility; Wilmington Trust, National Association, as
trustee and agent with respect to the Debtors' prepetition second
lien notes; and the ad hoc group of second lien noteholders.
Judge Kevin R. Huennekens has approved the Stipulation.
About Alpha Natural
Alpha Natural -- http://www.alphanr.com/-- is a coal supplier,
ranked second largest among publicly traded U.S. coal producers as
measured by 2014 consolidated revenues of $4.3 billion.
Alpha Natural Resources, Inc. and its affiliates filed separate
Chapter 11 bankruptcy petitions (Bankr. E.D. Va. Lead Case No.
15-33896) on Aug. 3, 2015, listing $9.9 billion in total assets as
of June 30, 2015, and $7.3 billion in total liabilities as of June
30, 2015. The petitions were signed by Richard H. Verheij,
executive vice president, general counsel and corporate secretary.
Judge Kevin R. Huennekens presides over the cases.
The Debtors tapped David G. Heiman, Esq., Carl E. Black, Esq., and
Thomas A. Wilson, Esq., at Jones Day, as general counsel. The
Debtors tapped Tyler P. Brown, Esq., J.R. Smith, Esq., Henry P.
(Toby) Long, III, Esq., and Justin F. Paget, Esq., at Hunton &
Williams LLP, as local counsel. Rothschild Group is the Debtors'
financial advisor. Alvarez & Marshal Holdings, LLC, is the
Debtors' investment banker. Kurtzman Carson Consultants, LLC, is
the Debtors' claims and noticing agent.
The U.S. Trustee for Region 4 appointed seven creditors of Alpha
Natural to serve on the official committee of unsecured creditors.
Sands Anderson PC, and Milbank, Tweed, Hadley & Mccloy LLP, were
retained by the Committee as counsel; Jefferies LLC, serves as
investment banker; and Protiviti Inc., serves as financial advisor.
AMAYA INC: S&P Revises Outlook to Negative & Affirms 'BB-' CCR
--------------------------------------------------------------
Standard & Poor's Ratings Services said it revised its outlook on
Montreal-based online gaming company Amaya Inc. to negative from
stable. At the same time, Standard & Poor's affirmed its 'BB-'
long-term corporate credit rating on the company, and its 'B+'
first-lien senior secured debt rating on the company's
subsidiaries, Amaya (US) and Amaya BV. The recovery rating on the
first-lien at the subsidiary level debt is unchanged at '2';
however, S&P now expects recovery to be in the lower half of the
70%-90% range in a default scenario. In addition, Standard &
Poor's affirmed its 'B+' issue-level rating on the subsidiaries'
second-lien senior secured debt. The '5' recovery rating on the
debt is unchanged, but S&P now expects recovery in the lower half
of the 10%-30% range in a default scenario.
"The outlook revision reflects our expectation that forecast
revenue and EBITDA will be lower than previously forecast," said
Standard & Poor's credit analyst Stephen Goltz. This is largely
due to the negative impact on revenue and cash flow that S&P
expects because of a strengthening U.S. dollar as compared with the
local currencies of the company's customers. This has caused a
relative reduction in the amount of deposit that customers receive
credit for relative to their local currency, which ultimately
reduces the amount of game play. On Nov. 10, 2015, Amaya announced
it was reducing its 2015 full-year guidance in part because of
this, which it estimates has led to a 19% decline in its customer
base's purchasing power.
In addition, although Amaya has continued to pay down its debt as
expected, the stronger U.S. dollar relative to the Canadian dollar,
the company's reporting currency, has significantly mitigated the
reduced debt's impact. As of Sept. 30, 2015, Amaya's principal
outstanding balance was approximately $2.6 billion on a local
currency basis while the carrying amount of that debt was
approximately $3.3 billion. For the 12 months ended Sept. 30, the
company's adjusted debt-to-EBITDA was 5.3x; S&P had expected it to
be below 5.0x.
"The ratings on Amaya reflect our view of the company's "fair"
business risk profile, with a strong share of the growing online
poker sector, limited product diversity, and good profitability. We
view the company's financial risk profile as "aggressive." We
continue to expect Amaya's strong free cash flow to support debt
reduction in the next two years. The company recently announced
that it has received a license for online gaming in the State of
New Jersey, which we expect will assist in cash flow growth. The
combination of the "fair" business risk profile and "aggressive"
financial risk profile yields an anchor score of 'bb-', and
modifiers had no effect on the ratings," S&P said.
Amaya operates several lines of business in the gaming industry,
with the largest earnings contribution from Poker Stars and Full
Tilt Poker. However, as the regulatory situation clarifies itself
S&P expects that the company will continue to pursue its stated
goal of building a sports book platform as well.
The negative outlook on Amaya reflects S&P's view that leverage
could remain above 5x or increase further depending on the effect
of currency swings on its profitability, cash flow, and leverage.
The stronger U.S. dollar has weakened Amaya's foreign-currency
gaming earnings, and has increased the carrying value of its debt,
slowing the company's deleveraging. S&P expects Amaya's free cash
flow will improve net debt to EBITDA to below 5x in 2016 assuming
continued growth in free cash flow as the company begins to operate
in New Jersey and potentially opens other verticals such as sports
betting.
S&P could lower the rating if leverage remains above 5x by the end
of fiscal 2016. S&P believes this would indicate weaker earnings
and free cash flow expectations and slower deleveraging.
S&P could revise the outlook to stable if debt to EBITDA drops
below 5x consistently, which it would expect could occur if Amaya
increases EBITDA to about US$500 million in 2016 and continues its
deleveraging efforts.
AMERICAN APPAREL: $90 Million Financing Has Final Approval
----------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware gave
American Apparel final approval to obtain up to $90.1 million of
senior secured postpetition financing from Wilmington Trust,
National Association, as administrative agent and collateral agent.
The Court also authorized the Debtors to use cash collateral of
the prepetition secured lenders.
A copy of the final order authorizing the Debtors to obtain
postpetition financing is available for free at:
http://bankrupt.com/misc/Amer_Apparel_248_Final_DIP_Order.pdf
Landlords, namely Starwood Retail Partners, LLC, Acadia Realty
Trust, Boulevard Invest, LLC, Deutsche Asset & Wealth Management,
and Centercal Properties, LLC, filed a limited objection to the
Debtors' motion to obtain DIP financing. While they do not object
to having liens attach to the proceeds of any disposition of their
leases, or granting liens to the extent permitted by the leases,
the Landlords averred that any lien must be subject to the specific
terms of the leases. The Landlords added that no liens should be
granted that would give the DIP Lenders the ability to potentially
circumvent Section 365 of the Bankruptcy Code, which mandates the
Debtors to timely perform all of their obligations under the
leases.
Bruce Elfant, the Travis County Tax Assessor-Collector, which
asserts a claim for ad valorem taxes on business personal property
for the tax year 2015 estimated to be $13,600, says it objects to
the Financing Motion because there are no provisions which deal
with the secured claims of Travis County and it fails to provide
fair and equitable treatment to these secured claims as required by
11 U.S.C. Sec. 1129(b)(1) and (2)(A).
Travis County is represented by:
David Escamilla
Travis County Attorney
P.O. Box 1748
Austin, TX 78767
Tel: (512) 854-9092
Fax: (512) 854-4808
Kay D. Brock
Assistant County Attorney
Texas Bar No. 11625100
E-mail: kay.brock@traviscountytx.gov
The Landlords are represented by:
Leslie C. Heilman, Esq.
Matthew G. Summers, Esq.
BALLARD SPAHR LLP
919 Market Street, 11th Floor
Wilmington, DE 19801
Telephone: (302) 252-4465
Facsimile: (302) 252-4466
E-mail: heilmanl@ballardspahr.com
summersm@ballardspahr.com
- and -
KATTEN MUCHIN ROSENMAN LLP
Dustin P. Branch, Esq.
2029 Century Park East, Suite 2600
Los Angeles, CA 90067-3012
Telephone: (310) 788-4400
Facsimile: (310) 788-4471
E-mail: dustin.branch@kattenlaw.com
The DIP Financing
The Debtors asserted they urgently need financing to, among other
things, meet their payroll obligations this week to over 4,900
employees and keep their approximately 230 stores operating.
Wilmington Trust, National Association, serves as administrative
agent in connection with the DIP Credit Facility.
Interest on the DIP Facility will accrue at Libor plus 7.00% per
annum. The Default Rate will be the interest rate or rate
otherwise applicable plus 2% per annum.
"Maturity Date" is the earlier of (i) Apri1 5, 2016; (ii) the date
the Bankruptcy Court orders the conversion of the bankruptcy case
of any of the Credit Parties to a Chapter 7 liquidation or the
dismissal of any of the Chapter 11 Cases; (iii) the acceleration of
the Loans and the termination of all Commitments under the DIP
Credit Facility pursuant to Section 8.02 of the DIP Credit
Agreement; (iv) the sale of all or substantially all of the Credit
Parties' assets; and (v) the consummation of the Approved Plan of
Reorganization for the Credit Parties.
The DIP Lenders under the DIP Credit Facility will be afforded
certain liens and claims, including priming liens and superpriority
claims on the property of the estate.
The DIP Credit Agreement contains various "milestones" that the
Debtors must meet throughout their Chapter 11 cases, and failure to
meet these milestones constitutes an Event of Default under the
DIP Credit Agreement. These milestones require:
(a) entry of the Final Order within 45 days of the entry of
the Interim Order;
(b) approval of the disclosure statement with respect to the
Approved Plan of Reorganization within 60 days of the
Petition Date;
(c) entry of the Confirmation Order within 120 days of the
Petition Date; and
(d) that the effective date of the Approved Plan of
Reorganization shall have occurred within 180 days of the
Petition Date.
A copy of the Debtor-in-Possession Credit Agreement dated as of
Oct. 4, 2015, is available for free at:
http://bankrupt.com/misc/19_AMERICAN_DIP.pdf
About American Apparel
American Apparel, Inc., American Apparel (USA), LLC, American
Apparel Retail, Inc., American Apparel Dyeing & Finishing, Inc.,
KCL Knitting, LLC and Fresh Air Freight, Inc. sought Chapter 11
bankruptcy protection (Bankr. D. Del. Proposed Lead Case No.
15-12055) on Oct. 5, 2015. The petition was signed by Hassan
Natha as chief financial officer.
The Debtors reported total assets of $199,360,934 and total
liabilities of $397,576,744.
The Debtors and their non-Debtor affiliates operate a vertically
integrated manufacturing, distribution, and retail business
focused
on branded fashion-basic apparel, employing approximately 8,500
employees across six manufacturing facilities and approximately
230
retail stores in the United States and 17 other countries
worldwide.
The Debtors have engaged Jones Day as restructuring counsel,
Pachulski Stang Ziehl & Jones LLP as local counsel, Moelis &
Company as investment banker, FTI Consulting, Inc. as financial
advisor, DJM Real Estate as real estate consultant and Garden City
Group, LLC as claims and noticing agent.
AMERICAN APPAREL: Says It Addressed Panel's Disclosure Concerns
---------------------------------------------------------------
Kali Hays at Bankruptcy Law360 reported that American Apparel Inc.
hit back on Nov. 16, 2015, at creditors' objections to the
purportedly insufficient disclosures it made to support its
proposed reorganization plan, saying those "manufactured
controversies" could have been avoided if the creditors had
directly voiced their concerns to the beleaguered clothing
retailer.
The company said on Nov. 16, it has already included more
information about several problems with the disclosure statement
the unsecured creditors committee had raised, namely surrounding
the committee's objection to the proposed plan, existing causes of
action implicating American Apparel and its lender.
About American Apparel
American Apparel, Inc., American Apparel (USA), LLC, American
Apparel Retail, Inc., American Apparel Dyeing & Finishing, Inc.,
KCL Knitting, LLC and Fresh Air Freight, Inc. sought Chapter 11
bankruptcy protection (Bankr. D. Del. Proposed Lead Case No.
15-12055) on Oct. 5, 2015. The petition was signed by Hassan
Natha as chief financial officer.
The Debtors reported total assets of $199,360,934 and total
liabilities of $397,576,744.
The Debtors and their non-debtor affiliates operate a vertically
integrated manufacturing, distribution, and retail business
focused
on branded fashion-basic apparel, employing approximately 8,500
employees across six manufacturing facilities and approximately
230
retail stores in the United States and 17 other countries
worldwide.
The Debtors have engaged Jones Day as restructuring counsel,
Pachulski Stang Ziehl & Jones LLP as local counsel, Moelis &
Company as investment banker, FTI Consulting, Inc. as financial
advisor, DJM Real Estate as real estate consultant and Garden City
Group, LLC as claims and noticing agent.
AMERICAN EAGLE: Reports $59.2M Net Loss in Quarter Ended Sept. 30
-----------------------------------------------------------------
BankruptcyData reported that American Eagle Energy announced
consolidated financial statements for the three-month and
nine-month periods ended Sept. 30, 2015. The Company reported a
$59.2 million net loss on $5.2 million in oil and gas sales during
the three months ended 2015. Comparatively, for the same
three-month period in 2014, net loss was $8.7 million with $17.1
million oil and gas sales. The Company also reported general and
administrative expenses of $5.6 million and reorganization costs of
$2.2 million for the three months ended Sept. 30, 2015.
General and administrative expenses for the same period in 2014
were $2.1 million, with zero reorganization costs. For the nine
months ended Sept. 30, 2015, general and administrative expenses
were $10.8 million and reorganization costs were $11.1 million --
versus $5.8 million for general and administrative expenses and
zero reorganization costs for the same nine-month period in 2014.
The Company notes that oil prices fell dramatically during the
fourth quarter of 2014 and continued to be depressed throughout the
first nine months of 2015, primarily as a result of over-supply and
global economic pressures from middle-eastern oil producing
countries. Average daily oil prices for the three-month periods
ended Sept. 30, 2015 and 2014 were $46.49 and 97.87, respectively.
About American Eagle
Littleton, Colorado-based American Eagle Energy Corporation is
engaged in the acquisition, exploration and development of oil and
gas properties. The Company is primarily focused on extracting
proved oil reserves from those properties.
American Eagle Energy Corporation and its wholly-owned subsidiary,
AMZG, Inc., filed on May 8, 2015, voluntary petitions (Bankr. D.
Colo., Case No. 15-15073). The case is assigned to Judge Howard R.
Tallman. The Debtors are represented by Elizabeth A. Green, Esq.,
at Baker & Hostetler LLP, in Orlando, Florida.
On May 13, 2015, Judge Tallman granted the Debtors' request for
joint administration.
American Eagle Energy disclosed total assets of $21,980,687 and
total liabilities of $193,604,113 as of the Chapter 11 filing.
The U.S. Trustee for Region 6, appointed seven creditors to serve
on the Official Committee of Unsecured Creditor. The Committee
tapped to retain Pachulski Stang Ziehl & Jones LLP as counsel, and
Conway Mackenzie as financial advisor.
AMPLIPHI BIOSCIENCES: Two Directors Appointed to Board
------------------------------------------------------
The Board of Directors of AmpliPhi Biosciences Corporation
appointed Vijay Samant as a Class II director of the Company and
Paul C. Grint, M.D. as a Class III director of the Company,
according to a Form 8-K report filed with the Securities and
Exchange Commission.
On Nov. 5, 2015, each of Mr. Samant and Dr. Grint was granted,
under the Company's 2013 Stock Incentive Plan, a stock option to
purchase 16,200 shares of the Company's common stock at an exercise
price per share of $5.65, which was the closing price of the
Company's common stock on the NYSE MKT on the date of grant. Each
of the stock options vests as follows: 25% of the shares subject to
the option will vest one year following the date of grant, and
thereafter the remaining shares will vest in equal monthly
installments over the following 36 months. As non-employee
directors, each of Mr. Samant and Dr. Grint will also be entitled
to receive an annual cash retainer of $40,000 for service on the
Board.
About AmpliPhi
AmpliPhi Biosciences Corp. is a biopharmaceutical company that
develops bacteriophage-based therapeutics. It also develops an
internally generated pipeline of naturally occurring viruses
called bacteriophage (Phage) for the treatment of bacterial
infection, such as drug-resistant strains of bacteria that are
commonly found in the hospital setting. The company's Phage
discovery also focuses on acute & chronic lung, sinus and
gastrointestinal infections. AmpliPhi Biosciences was founded in
March 1989 and is headquartered in Glen Allen, Virginia.
The Company reported net income attributable to common stockholders
of $21.82 million for the year ended Dec. 31, 2014, compared to a
net loss attributable to common stockholders of $65.2 million for
the year ended Dec. 31, 2013.
As of June 30, 2015, the Company had $36.3 million in total assets,
$19.2 million in total liabilities, $4 million in series B
redeemable convertible preferred stock, and total stockholders'
equity of $13 million.
ARIEL FUND: Court Approves 10th Interim Cash Distribution
---------------------------------------------------------
Justice Richard B. Lowe, III, of the New York State Supreme Court
in Manhattan, on Nov. 18 disclosed that it has approved a $235
million distribution request proposed by Bart M. Schwartz, Court
appointed Receiver for Gabriel Capital, LP and Ariel Fund, Ltd, two
funds formerly run by J. Ezra Merkin that suffered losses due to
the Madoff fraud. This distribution is a direct result of Mr.
Schwartz's recent settlement of the Funds' claims against the
Madoff Estate with its Trustee Irving H. Picard.
This brings the total distributions by Mr. Schwartz to the Funds'
investors to over $1.4 billion, approximately $300 million greater
than the value of the Funds at the time of Mr. Schwartz's
appointment as Receiver by the Court in June, 2009.
"Under the stewardship of Justice Lowe and working closely with the
Office of the New York Attorney General's office, we have been able
to achieve these remarkable results," said Mr. Schwartz. "This is
an outstanding success for the victimized investors."
This most recent distribution is the tenth interim payment approved
by Justice Lowe. The Funds continue to hold an investment
portfolio with a combined estimated value of approximately $600
million.
Added Robert P. Rittereiser, who manages the two funds with Mr.
Schwartz: "Assuming a successful sale of those assets, which we
will continue to manage in an orderly manner, the total
distribution to the investors is expected to be approximately $2
billion or $200 million more than the estimated value of the Funds
in November 2008 when the fictitious Madoff gains were included in
the valuation."
The expected $2 billion distribution includes the settlement
received by the Funds from Ezra Merkin in the lawsuit brought by
the New York State Attorney General. Mr. Schwartz was appointed by
Justice Lowe pursuant to that lawsuit.
"On behalf of the investors, I want to express my appreciation to
the Court, the New York Attorney General's office, my colleagues
Robert P. Rittereiser and Michael D. Klett, and the Reed Smith, LLP
legal team of James McCarroll and Jordan Siev. I also am very
grateful for the advice and participation of the members of The
Investor Committee," said Mr. Schwartz.
About Ariel Fund
Ariel Fund Limited, Ascot Partners, L.P., and Gabriel Capital,
L.P., were feeder funds for Bernard L. Madoff Investment
Securities Inc.
In May 2009, financier J. Ezra Merkin ceded to New York Attorney
General Andrew Cuomo's demands that he step down as manager of the
hedge funds and place them into receivership, following the
collapse of Madoff's investment firm.
Jacob Ezra Merkin (born 1954) was a close business associate of
Bernard Madoff, and is alleged to have played a significant part
in the Madoff fraud.
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.
ASSOCIATED WHOLESALERS: Has Until Dec. 30 to File Plan
------------------------------------------------------
Judge Kevin J. Carey of the U.S. Bankruptcy Court for the District
of Delaware extended the period in which ADI Liquidation, Inc.,
f/k/a AWI Delaware, Inc., et al., have the exclusive right to file
a Chapter 11 plan through and including Dec. 30, 2015, and the
period by which they have exclusive right to solicit acceptances of
the plan through and including Feb. 24, 2016.
About Associated Wholesalers
Founded in 1962 and headquartered in Robesonia, Pennsylvania,
Associated Wholesalers Inc. serviced 800 supermarkets, specialty
stores, convenience stores and superettes with grocery, meat,
produce, dairy, frozen foods and general merchandise/health and
beauty care products. AWI, with distribution facilities in
Robesonia, Pennsylvania, and York, Pennsylvania, served the
mid-Atlantic United States. AWI is owned by its 500 retail
members, who in turn operate supermarkets. AWI had 1,459
employees.
White Rose Inc. is a food wholesaler and distributor serving the
greater New York metropolitan area. The company traces its origins
to 1886, when brothers Joseph and Sigel Seeman founded Seeman
Brothers & Doremus to provide grocery deliveries throughout New
York City. White Rose carries out its operations through three
leased warehouse and distribution centers, two of which are located
in Carteret, New Jersey, and one in Woodbridge, New Jersey. White
Rose has 777 employees.
Associated Wholesalers and its affiliates sought Chapter 11
bankruptcy protection on Sept. 9, 2014, to sell their assets under
11 U.S.C. Sec. 363 to C&S Wholesale Grocers, absent higher and
better offers. The Debtors were granted joint administration of
their Chapter 11 cases for procedural purposes, under the lead case
of AWI Delaware, Inc., Bankr. D. Del. Case No. 14-12092.
As of the Petition Date, the Debtors owed the Bank Group
(consisting of lenders, Bank of America, N.A., Bank of American
Securities LLC as sole lead arranger and joint book runner, Wells
Fargo Capital Finance, LLC as joint book runner and syndication
agent, and RBS Capita, as documentation agent) an aggregate
principal amount of not less than $131,857,966 (inclusive of
outstanding letters of credit), plus accrued interest. The Debtors
estimate trade debt of $72 million. AWI Delaware disclosed $11,440
in assets and $125,112,386 in liabilities as of the Chapter 11
filing.
Saul Ewing LLP and Rhoads & Sinon LLP are serving as legal advisors
to the Debtors, Lazard Middle Market is serving as financial
advisor, and Carl Marks Advisors is serving as restructuring
advisor to AWI. Carl Marks' Douglas A. Booth has been tapped as
chief restructuring officer. Epiq Systems serves as the claims
agent.
The Official Committee of Unsecured Creditors is represented by
David B. Stratton, Esq., and Evelyn J. Meltzer, Esq., at Pepper
Hamilton, LLP, in Wilmington, Delaware; and Mark T. Power, Esq.,
and Christopher J. Hunker, Esq., at Hahn & Hessen LLP, in New York.
The Committee also has retained Capstone Advisory Group, LLC,
together with its wholly-owned subsidiary Capstone Valuation
Services, LLC, as its financial advisors.
The Troubled Company Reporter, on Nov. 5, 2014, reported that the
Bankruptcy Court authorized Associated Wholesalers to sell
substantially all of its assets, including their White Rose grocery
distribution business, to C&S Wholesale Grocers, Inc. The C&S
purchase price consists of the lesser of the amount of the bank
debt, which totals about $18.1 million and $152 million, plus other
liabilities, which amount is valued at $194 million. C&S,
according to Bill Rochelle and Sherri Toub, bankruptcy columnists
for Bloomberg News, ended up paying $86.5 million more cash to be
anointed as the winner at the auction.
Associated Wholesalers, which changed its name to AWI Delaware,
Inc., prior to the approval of the sale. AWI Delaware notified the
Bankruptcy Court on Nov. 12, 2014, that closing occurred in
connection with the sale of their assets to C&S. AWI Delaware then
changed its name to ADI Liquidation, Inc., following the closing of
the sale.
ATLANTIC & PACIFIC: Granted Until March to File Bankruptcy Plan
---------------------------------------------------------------
ABI.org reported that The Great Atlantic & Pacific Tea Company,
Inc., et al. was granted another 120 days to file its bankruptcy
plan, shifting the deadline to mid-March 2016, and it was also
given the green light to sell the Ramsey Pathmark to an
Italian-themed supermarket.
About Atlantic & Pacific
Based in Montvale, New Jersey, The Great Atlantic & Pacific Tea
Company, Inc., and its affiliates are one of the nation's oldest
leading supermarket and food retailers, operating approximately 300
supermarkets, beer, wine, and liquor stores, combination food and
drug stores, and limited assortment food stores across six
Northeastern states. The primary retail operations consist of
supermarkets operated under a variety of well known trade names, or
"banners," including A&P, Waldbaum's, SuperFresh, Pathmark, Food
Basics, The Food Emporium, Best Cellars, and A&P Liquors.
Then with 429 stores, A&P and its affiliates filed Chapter 11
petitions (Bankr. S.D.N.Y. Case No. 10-24549) on Dec. 12, 2010, and
in 2012 emerged from Chapter 11 bankruptcy as a privately held
company with 320 supermarkets.
On July, 19, 2015, with 300 stores, A&P and 20 affiliated debtors
each filed a Chapter 11 petition (Bankr. S.D.N.Y.) after reaching
deals for the going concern sales of 120 stores. The Debtors are
seeking joint administration under Case No. 15-23007.
The Debtor disclosed total assets of $601,441,108 and total
liabilities of $1,984,459,086 as of the Petition Date.
The Debtors tapped Weil, Gotshal & Manges LLP as counsel, Evercore
Group L.L.C., as investment banker, FTI Consulting, Inc., as
financial advisor, Hilco Real Estate, LLC, as real estate advisor,
and Prime Clerk LLC, as claims and noticing agent.
The U.S. Trustee for Region 2 appointed seven creditors to serve on
the official committee of unsecured creditors. Pachulski Stang
Ziehl & Jones LLP serves as its counsel, and Zolfo Cooper, LLC as
serves as its financial advisors and bankruptcy consultants.
ATNA RESOURCES: Has Interim OK to Obtain $4-Mil. DIP Financing
--------------------------------------------------------------
Atna Resources Inc., et al., sought and obtained interim permission
from the Bankruptcy Court to borrow up to $4,000,000 postpetition
financing facility from Waterton Precious Metals Fund II Cayman, LP
or a designated affiliate -- the Debtors' prepetition senior
secured lender. The Court also authorized the consensual use by
the Debtors of their cash collateral.
The Interim Order provides that the Debtors may draw an aggregate
principal amount of $1,265,000 during the interim period.
In papers filed with the Court, the Debtors said they historically
have relied primarily on cash receipts generated from their mining
operations at the Pinson and Briggs gold mines to fund ongoing
operating costs and expenses. According to the Debtors, due to
adverse market conditions, a severe drop in the price of gold,
operational, technical and production issues, and other unforeseen
circumstances and events beyond their control, cash receipts from
these operations alone will not be sufficient to fund these cases.
The Court found that the Debtors have an immediate need to obtain
the DIP Facility and use Cash Collateral to, among other things,
permit the orderly continuation of their businesses, to make
payroll, to satisfy other working capital and operational needs, to
complete their marketing and sale process and to otherwise preserve
the value of their estates. The Court said the Debtors' access to
sufficient working capital and liquidity through the use of Cash
Collateral and borrowing under the DIP Facility is vital to a
successful reorganization.
The DIP Facility will bear interest at a rate of 8% per annum. From
and after the occurrence and during the continuance of an Event of
Default, outstanding advances under the DIP Facility will bear
interest at that rate plus an additional 2% per annum.
To secure the DIP Obligations, the DIP Lender, will receive valid,
enforceable and fully perfected security interests in and liens
and mortgages upon all prepetition and post-petition assets of the
Debtors.
In consideration for the use of the Pre-Petition Collateral, the
Pre-Petition Lender will receive adequate protection liens, only to
the extent there is an actual diminution in value of the
Pre-Petition Lender's interests in the Pre-Petition Collateral.
The Debtors owe the Pre-Petition Lender an aggregate principal
amount of $19,080,800, plus accrued and unpaid interest and any
additional fees, as of the Petition Date.
A final hearing will be held on Jan. 14, 2016, at 9:30
a.m.(Mountain Time) in Courtroom D, U.S. Bankruptcy Court, U.S.
Custom House, 721 19th Street, in Denver, Colorado, to consider
entry of the Final Order.
A copy of the Interim DIP Order is available for free at:
http://bankrupt.com/misc/92_ATNA_InterimDIPOrd.pdf
About Atna Resources
Atna Resources, Inc., et al., filed Chapter 11 bankruptcy petitions
(Bankr. D. Colo. Proposed Lead Case No. 15-22848) on Nov. 18, 2015.
The petition was signed by Rodney D. Gloss as vice president &
chief financial officer. The Debtors estimated assets in the range
of $10 million to $50 million and liabilities of $50 million to
$100 million. Squire Patton Boggs (US) LLP represents the Debtors
as counsel.
The Company's business is to explore, acquire, develop, and mine
precious metals, uranium and other mineral properties.
ATNA RESOURCES: Wants Jan. 16 Deadline to File Schedules
--------------------------------------------------------
Atna Resources Inc., et al. ask the Bankruptcy Court to extend the
period within which they may file their schedules of assets and
liabilities and statements of financial affairs by an additional 45
days through and including Jan. 16, 2016.
"The size, scope and complexity of these cases and the volume of
material that must be compiled and reviewed by the Debtors' limited
staff to complete the Schedules and Statements for each of the
Debtors during the hectic early days of these cases provide ample
"cause" justifying the requested extension," asserts Stephen D.
Lerner, Esq. at Squire Patton Boggs (US) LLP, attorney for the
Debtors.
The Debtors tell the Court that their first priority was to ensure
a smooth transition into chapter 11 with minimal disruption to
their business operations. To this end, the Debtors relate they
dedicated their limited staff and resources to negotiating with
lenders, evaluating restructuring alternatives, developing
strategies to maximize value and successfully reorganize its
business, and assisting with the preparation of critical first day
motions.
According to the Debtors, interested parties will not be prejudiced
by the extension and the extension will not materially impair
interested parties' ability to review the Schedules prior to the
Section 341 Meeting of Creditors.
About Atna Resources
Atna Resources, Inc., et al., filed Chapter 11 bankruptcy petitions
(Bankr. D. Colo. Proposed Lead Case No. 15-22848) on Nov. 18, 2015.
The petition was signed by Rodney D. Gloss as vice president &
chief financial officer. The Debtors estimated assets in the range
of $10 million to $50 million and liabilities of $50 million to
$100 million. Squire Patton Boggs (US) LLP represents the Debtors
as counsel.
The Company's business is to explore, acquire, develop, and mine
precious metals, uranium and other mineral properties.
BLB WORLDWIDE: Twin River's Bid for Summary Judgment Granted
------------------------------------------------------------
Judge Frank J. Bailey of the United States Bankruptcy Court for the
District of Rhode Island granted the motion for summary judgment
filed by the UTGR, Inc. d/b/a Twin River, BLB Worldwide Holdings,
Inc., and BLB Management Services, Inc., and denied the motion for
summary judgment filed by Sola Ltd. and Ultra Master Ltd., Twin
River Holdings, L.P., and Wingspan Master Fund, LP.
On January 21, 2015, Twin River filed an adversary complaint
requesting an order instructing that the provision of the CVR
Agreement setting forth additional details regarding the thresholds
above which holders of Contingent Value Rights ("CVR Holders") are
entitled to part of the proceeds from a covered transaction is a
permissible implementation of the Second Amended Joint Plan of
Reorganization Pursuant to Chapter 11 of the Bankruptcy Code (the
"Plan") approved by the court in its June 24, 2010 confirmation
order. On February 6, 2015, the defendants moved to join the CVR
Holders as plaintiffs, which motion the court allowed.
A motion for summary judgment was filed by the plaintiffs on June
8, 2015. On June 26, 2015, the defendants filed a cross motion for
summary judgment.
Judge Bailey found the Plan and confirmation order to be ambiguous
as to the question of whether the CVR Agreement's payment threshold
provisions are a permissible implementation of the Plan. The judge
thus proceeded to review the extrinsic evidence offered by the
parties and found that the only permissible interpretation of the
extrinsic evidence is that the negotiating parties universally
understood the Plan to have a meaning that is consistent with the
CVR Agreement's payment threshold provisions. Thus, Judge Bailey
concluded that the CVR Agreement's payment threshold provisions are
consistent with the Plan and are a permissible implementation of
the Plan.
Judge Bailey rejected the defendants' argument that the CVR
Agreement's payment threshold provisions materially modified the
plan, and that Twin River improperly failed to amend the Plan or
failed to meet its disclosure obligations.
The case is In re BLB WORLDWIDE HOLDINGS, INC., n/k/a TWIN RIVER
WORLDWIDE HOLDINGS, INC., Chapter 11, Debtor. TWIN RIVER WORLDWIDE
HOLDINGS, INC., Plaintiff, v. SOLA LTD; ULTRA MASTER FUND LTD;
WINGSPAN MASTER FUND, LP; and APOLLO TWIN RIVER HOLDINGS, L.P.,
Defendants, CASE NO. 09-12420, ADVERSARY PROCEEDING NO. 15-1003
(Bankr. D.R.I.).
A full-text copy of Judge Bailey's November 3, 2015 memorandum of
decision is available at http://is.gd/BPhs7xfrom Leagle.com.
Twin River Worldwide Holdings, Inc. is represented by:
Paul M. Basta, Esq.
Stephen E. Hessler, Esq.
KIRKLAND & ELLIS LLP
601 Lexington Avenue
New York, NY 10022
Tel: (212) 446-4800
Fax: (212) 446-4900
Email: paul.basta@kirkland.com
stephen.hessler@kirkland.com
-- and --
John F. Hartmann, Esq.
Timothy W. Knapp, Esq.
Joshua Z. Rabinovitz, Esq.
Brenton A. Rogers, Esq.
Nicholas F Wasdin, Esq.
KIRKLAND & ELLIS LLP
300 North LaSalle
Chicago, IL 60654
Tel: (312) 862-2000
Fax: (312) 862-2200
Email: john.hartmann@kirkland.com
timothy.knapp@kirkland.com
joshua.rabinovitz@kirkland.com
brenton.rogers@kirkland.com
nick.wasdin@kirkland.com
-- and --
John A. Dorsey, Esq.
W. Mark Russo, Esq.
FERRUCCI RUSSO P.C.
55 Pine Street, 4th Floor
Providence, RI 02903
Tel: (401) 455-1000
Fax: (401) 455-7778
Email: jdorsey@frlawri.com
mrusso@frlawri.com
Sola Ltd. is represented by:
Daniel S. Holzman, Esq.
Eric M. Kay, Esq.
Susheel Kirpalani, Esq.
Renita N. Sharma, Esq.
James C. Tecce, Esq.
Corey Worcester, Esq.
QUINN EMANUEL URQUHART & SULLIVAN LLP
51 Madison Avenue, 22nd Floor
New York, NY 10010
Tel: (212) 849-7000
Fax: (212) 849-7100
Email: danielholzman@quinnemanuel.com
erickay@quinnemanuel.com
susheelkirpalani@quinnemanuel.com
renitasharma@quinnemanuel.com
jamestecce@quinnemanuel.com
coreyworcester@quinnemanuel.com
-- and --
Leah L Miraldi, Esq.
Justin T. Shay, Esq.
CAMERON & MITTLEMAN LLP
301 Promenade Street
Providence, RI 02908
Tel: (401) 331-5700
Fax: (401) 331-5787
Email: lmiraldi@cm-law.com
jshay@cm-law.com
Apollo Twin River Holdings, L.P. is represented by:
James G. Atchison, Esq.
Thomas E. Carlotto, Esq.
SHECHTMAN HALPERIN SAVAGE, LLP
1080 Main Street
Pawtucket, RI 02860
Tel: (401) 272-1400
Fax: (401) 272-1403
Email: jatchison@shslawfirm.com
tcarlotto@shslawfirm.com
-- and --
Brian T Carney, Esq.
Ira S. Dizengoff, Esq.
J. Matthew Evans, Esq.
Brad M Kahn, Esq.
Vinay Limbachia, Esq.
Carolyn Joyce C. Mattus, Esq.
AKIN GUMP STRAUSS HAUER & FELD LLP
One Bryant Park
Bank of America Tower
New York, NY 10036-6745
Tel: (212) 872-1000
Fax: (212) 872-1002
Email: bcarney@akingump.com
idizengoff@akingump.com
bkahn@akingump.com
vlimbachia@akingump.com
BOISE CASCADE: S&P Affirms 'BB-' CCR, Outlook Remains Stable
------------------------------------------------------------
Standard & Poor's Ratings Services said it affirmed its 'BB-'
corporate credit rating on Boise Cascade Co. and revised its
assessment of the company's liquidity to "exceptional" from
"strong." The outlook remains stable.
S&P's revision of Boise Cascade's liquidity assessment reflects the
company's commitment to maintaining high levels of cash and
availability on its asset-based revolving credit facility. The
revision has no effect on the issuer and debt-level ratings.
"The stable outlook reflects our view that lumber prices have
mostly bottomed out and will begin to improve over the next 12
months, which will stabilize Boise Cascade's operating
performance," said Standard & Poor's credit analyst Thomas O'Toole.
"Despite weaker-than-expected lumber prices throughout 2015, we
expect Boise Cascade to maintain leverage below 4x, which is in
line with the current rating, due to the continued demand for new
homes and improved construction activity in the U.S."
A significant disruption in the housing market, or
longer-than-anticipated weakness in lumber prices, would negatively
affect Boise Cascade's leverage and liquidity. S&P could consider
a downgrade if leverage is sustained above 4x.
S&P views an upgrade as unlikely in the next year due to Boise
Cascade's historically high volatility of earnings and credit
measures driven by its participation in the highly cyclical
construction industry. This volatility is a constraining factor on
both the company's "weak" business risk profile and "aggressive"
financial risk profile. S&P could consider raising the rating if
leverage was sustained below 2x.
BROADWAY FINANCIAL: Posts $979,000 Net Income for Third Quarter
---------------------------------------------------------------
Broadway Financial Corporation filed with the Securities and
Exchange Commission its quarterly report on Form 10-Q disclosing
net income of $979,000 on $3.72 million of total interest income
for the three months ended Sept. 30, 2015, compared to net income
of $765,000 on $3.87 million of total interest income for the same
period in 2014.
For the nine months ended Sept. 30, 2015, the Company reported net
income of $3.43 million on $11.74 million of total interest income
compared to net income of $1.81 million on $11.54 million of total
interest income for the same period during the prior year.
As of Sept. 30, 2015, the Company had $403.90 million in total
assets, $363.25 million in total liabilities and $40.64 million in
total stockholders' equity.
A full-text copy of the Form 10-Q is available for free at:
http://is.gd/vpKqXP
About Broadway Financial
Los Angeles, Calif.-based Broadway Financial Corporation was
incorporated under Delaware law in 1995 for the purpose of
acquiring and holding all of the outstanding capital stock of
Broadway Federal Savings and Loan Association as part of the
Bank's conversion from a federally chartered mutual savings
association to a federally chartered stock savings bank. In
connection with the conversion, the Bank's name was changed to
Broadway Federal Bank, f.s.b. The conversion was completed, and
the Bank became a wholly owned subsidiary of the Company, in
January 1996.
The Company is regulated by the Board of Governors of the Federal
Reserve System. The Bank is regulated by the Office of the
Comptroller of the Currency and the Federal Deposit Insurance
Corporation.
Regulatory Matters
As a result of significant deficiencies in the Company's and the
Bank's operations noted in a regulatory examination in early 2010,
the Company and the Bank were declared to be in "troubled
condition" and agreed to the issuance of the cease and desist
orders by the regulatory predecessor of the Office of the
Comptroller of the Currency for the Bank and the Board of Governors
of the Federal Reserve System for the Company effective Sept. 9,
2010, requiring, among other things, that the Company and the Bank
take remedial actions to improve the Bank's loan underwriting and
internal asset review procedures, to reduce the amount of its
non-performing assets and to improve other aspects of the Bank's
business, as well as the Company's management of its business and
the oversight of the Company's business by the Board of Directors.
Effective Oct. 30, 2013, the Order for the Bank was superseded by a
Consent Order entered into by the Bank with the OCC. As part of
the Consent Order, the Bank is required to attain, and thereafter
maintain, a Tier 1 (Core) Capital to Adjusted Total Assets ratio of
at least 9% and a Total Risk-Based Capital to Risk-Weighted Assets
ratio of at least 13%, both of which ratios are greater than the
respective 4% and 8% levels for such ratios that are generally
required under OCC regulations. The Bank's regulatory capital
exceeded both of these higher capital ratios at Dec. 31, 2014, and
2013.
BUNKERS INTERNATIONAL: Court Denies UFS Bid to Recover $84K Payment
-------------------------------------------------------------------
United Feeder Services Ltd.'s motion seeking relief from the
automatic stay and compelling the return of funds withheld by
debtor Bunkers International Corp., was denied by Judge Cynthia C.
Jackson of the U.S. Bankruptcy Court for the Middle District of
Florida, Orlando Division.
UFS contended that Bunkernet Ltd. supplied bunkers to M/V VICTORIA
in Haifa, Israel and invoiced UFS the amount of $84,361. UFS
further contended that due to an internal billing error, the
invoice was mistakenly posted to Bunker International's account and
paid in full. UFS sought to have the automatic stay lifted to
permit UFS to regain possession of the payment of $84,361, which
was wrongfully being withheld by Bunkers International. UFS told
the Court that in a good faith effort to resolve the issue, it had
liaised with Bunkers International to discuss the amicable
resolution of the issue and the return of funds. UFS further told
the Court that Bunkers International has taken the position that
UFS' payment is now property of the estate and will not return the
funds.
United Feeder Services is represented by:
Michelle Otero Valdes, Esq.
CHALOS & CO, P.C.
141 Almeria Avenue
Coral Gables, FL 33134
Telephone: (305)377-3700
Facsimile: (866)702-4577
E-mail: mov@chaloslaw.com
- and -
George M. Chalos, Esq.
CHALOS & CO., P.C.
55 Hamilton Avenue
Oyster Bay, New York 11771
Telephone: (516)714-4300
Facsimile: (516)750-9051
E-mail: gmc@chaloslaw.com
About Bunkers International Corp.
Based in Lake Mary, Florida, Bunkers International trades and
provides fuel for ships at sea. It provides physical supply,
trading, and brokering services from a number of global locating
including those in the U.S., Singapore, Greece, and the United
Kingdom, and says it is the largest marine fuel supplier in
Colombia through its BunkersOil Colombia joint venture with
Vanoil, S.A. The Company started in Colombia in 1995.
Bunkers International Corp. and three affiliates sought Chapter 11
bankruptcy protection (Bankr. M.D. Fla. Proposed Lead Case No.
15-07397) on Aug. 28, 2015. The petition was signed by John T.
Canal as president/CEO. The Debtors estimated assets of $10
million to $50 million and liabilities of at least $10 million.
Latham, Shuker, Eden & Beaudine, LLP represents the Debtors as
counsel.
CAA HOLDINGS: S&P Assigns 'B+' CCR, Outlook Stable
--------------------------------------------------
Standard & Poor's Ratings Services said that it assigned its 'B+'
corporate credit rating to CAA Holdings LLC's and subsequently
withdrew its 'B+' corporate credit rating on CAA's wholly owned
subsidiary, Creative Artists Agency LLC. The rating outlook is
stable.
S&P also affirmed its 'BB-' issue-level rating and '2' recovery
rating on Creative Artists Agency's senior secured term loan
facility. The '2' recovery rating indicates S&P's expectation for
substantial recovery (70%-90%; lower half of the range) of
principal in the event of a payment default.
"The rating actions reflect our view that an alignment of the
corporate credit rating to the ultimate parent entity, CAA, better
represents the company's credit profile," said Standard & Poor's
credit analyst Dylan Singh. The rating withdrawal does not affect
our assessment of CAA's business risk profile as "fair" and its
financial risk profile assessment as "highly leveraged," based on
the company's private equity ownership business and financial risk
profiles.
"The stable rating outlook on CAA reflects our view that the
company's adjusted leverage will remain between 4.5x and 5.5x on a
sustained basis," said Mr. Singh. "We believe that private equity
sponsor, TPG Capital, could make further debt-financed
distributions, which would offset the modest leverage improvements
from EBITDA growth and mandatory debt repayments."
S&P could lower the rating on CAA if the company's operating
performance is below S&P's expectation, including a significant
EBITDA decline in its sports segment, its strongest growth segment.
S&P could also lower the rating if the company pursues significant
debt-financed acquisitions in a manner that causes total adjusted
leverage to remain above 5.5x on a sustained basis.
S&P could raise the rating by one notch to 'BB-' if it become
convinced that CAA's management and owners will adopt a more
conservative financial policy, with a firm commitment to
maintaining adjusted leverage below 4.5x on a sustained basis. S&P
views this as unlikely, given the private equity ownership and the
likelihood for debt-financed distributions that could raise the
company's upgrade leverage above S&P's threshold over the next
12-18 months.
CAESARS ENTERTAINMENT: Judge Can't Stop on $364M Pension Dispute
----------------------------------------------------------------
Jessica Corso at Bankruptcy Law360 reported that an Illinois
bankruptcy judge will not stop the National Retirement Fund from
pursuing Caesars Entertainment Corp. for $364 million in unfunded
pension obligations, saying that the bankruptcy protections granted
to affiliate Caesars Operating Entertainment Co. do not extend to
its nondebtor parent.
U.S. Bankruptcy Judge Benjamin Goldgar said in an opinion on
Nov. 12, 2015, that NRF did not violate the bankruptcy code by
pursuing CEC and an affiliated entity -- Caesars Entertainment
Resort Properties -- that is also not in bankruptcy.
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.
On February 5, 2015, U.S. Trustee Patrick Layng appointed nine
creditors to the Debtors' official committee of unsecured
creditors. Two of these creditors -- the Board of Levee
Commissioners for the Yazoo Mississippi Delta and MeehanCombs
Global Credit Opportunities Master Fund LP -- resigned from the
committee following their appointment. They were replaced by the
National Retirement Fund and Relative Value-Long/Short Debt, a
Series of Underlying Funds Trust.
CANCER GENETICS: Empery Asset Reports 6.49% Stake as of Nov. 6
--------------------------------------------------------------
In a Schedule 13G filed with the Securities and Exchange
Commission, Empery Asset Management, LP, Ryan M. Lane and Martin D.
Hoe disclosed that as of Nov. 6, 2015, they beneficially own
833,300 shares of common stock and 833,300 shares of common stock
issuable upon exercise of warrants of Cancer Genetics, Inc.,
representing 6.49 percent of the shares outstanding. A copy of the
regulatory filing is available at http://is.gd/wx0BwF
About Cancer Genetics
Rutherford, N.J.-based Cancer Genetics, Inc., is an early-stage
diagnostics company focused on developing and commercializing
proprietary genomic tests and services to improve and personalize
the diagnosis, prognosis and response to treatment (theranosis) of
cancer.
Cancer Genetics reported a net loss of $16.6 million in 2014, a net
loss of $12.4 million in 2013 and a net loss of $6.66 million in
2012.
As of Sept. 30, 2015, the Company had $35.97 million in total
assets, $13.66 million in total liabilities and $22.31 million in
total stockholders' equity.
CANCER GENETICS: Hal Mintz Reports 8.4% Stake as of Nov. 6
----------------------------------------------------------
In a Schedule 13G filed with the Securities and Exchange
Commission, Hal Mintz disclosed that as of Nov. 6, 2015, he
beneficially owns 833,300 shares of common stock of Cancer
Genetics, Inc., representing 8.46 percent of the shares
outstanding. A copy of the regulatory filing is available for free
at http://is.gd/2XMAH2
About Cancer Genetics
Rutherford, N.J.-based Cancer Genetics, Inc., is an early-stage
diagnostics company focused on developing and commercializing
proprietary genomic tests and services to improve and personalize
the diagnosis, prognosis and response to treatment (theranosis) of
cancer.
Cancer Genetics reported a net loss of $16.6 million in 2014, a net
loss of $12.4 million in 2013 and a net loss of $6.66 million in
2012.
As of Sept. 30, 2015, the Company had $35.97 million in total
assets, $13.66 million in total liabilities and $22.31 million in
total stockholders' equity.
CANCER GENETICS: Reports Third Quarter 2015 Results
---------------------------------------------------
Cancer Genetics, Inc. reported a net loss of $5.21 million on $4
million of revenue for the three months ended Sept. 30, 2015,
compared to a net loss of $4.79 million on $3.22 million of revenue
for the same period in 2014.
For the nine months ended Sept. 30, 2015, the Company reported a
net loss of $14.47 million on $12.55 million of revenue compared to
a net loss of $11.46 million on $6.16 million of revenue for the
same period last year.
As of Sept. 30, 2015, the Company had $35.97 million in total
assets, $13.66 million in total liabilities and $22.31 million in
total stockholders' equity.
"As we move toward year-end, our business continues to perform
well, delivering strong results and creating additional value for
the global oncology community," said Panna Sharma, CEO & president
of Cancer Genetics, Inc. "There is continued high demand for our
unique, proprietary portfolio of genomic tests and panels in the
marketplace and our focused M&A strategy has delivered three
transformative acquisitions over the past two years."
"Our recently priced public offering, which we expect will result
in gross proceeds of $12 million for CGI, will help facilitate
RGI's integration, will back multiple upcoming launches and will
further support the marketing and continued growth of our Biopharma
business. Rapid, successful integration of RGI will deliver
revenue and cost synergies, and will accelerate the time to cash
flow breakeven for CGI. The RGI acquisition is a value creator for
the Company that expands the product offering; enhances CGI's
ability to compete for national payer contracts; enhances
geographic sales coverage; grows the existing customer base; and
provides the basis for deeper customer penetration," continued
Sharma.
A copy of the press release is available for free at:
http://is.gd/LwfV22
About Cancer Genetics
Rutherford, N.J.-based Cancer Genetics, Inc., is an early-stage
diagnostics company focused on developing and commercializing
proprietary genomic tests and services to improve and personalize
the diagnosis, prognosis and response to treatment (theranosis) of
cancer.
Cancer Genetics reported a net loss of $16.6 million in 2014, a net
loss of $12.4 million in 2013 and a net loss of $6.66 million in
2012.
CLARKE'S ALLIED: Case Summary & 20 Largest Unsecured Creditors
--------------------------------------------------------------
Debtor: Clarke's Allied, Inc
10355 Linwood Avenue
Shreveport, LA 71106
Case No.: 15-12164
Chapter 11 Petition Date: November 23, 2015
Court: United States Bankruptcy Court
Western District of Louisiana (Shreveport)
Judge: Hon. Jeffrey P. Norman
Debtor's Counsel: Robert W. Raley, Esq.
AYRES, SHELTON, WILLIAMS, BENSON & PAINE, LLC
290 Benton Road Spur
Bossier City, LA 71111
Tel: (318) 747-2230
Fax: (318) 747-0106
Email: rraley52@robertraleylaw.com
robertraley@arklatexlaw.com
Estimated Assets: $500,000 to $1 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Andrew L Clarke, president.
A list of the Debtor's 20 largest unsecured creditors is available
for free at http://bankrupt.com/misc/lawb15-12164.pdf
CLIFFS NATURAL: Casablanca Capital Has 4.7% Stake as of Nov. 6
--------------------------------------------------------------
In an amended Schedule 13D filed with the Securities and Exchange
Commission, Casablanca Capital LP, Donald G. Drapkin and Douglas
Taylor disclosed that as of Nov. 6, 2015, they beneficially own
7,254,865 shares of common stock of Cliffs Natural Resources Inc.,
representing 4.7 percent of the shares outstanding. A copy of the
regulatory filing is available at http://is.gd/gLJk4x
About Cliffs Natural Resources
Cliffs Natural Resources Inc. --
http://www.cliffsnaturalresources.com/-- is a mining and natural
resources company. The Company is a major supplier of iron ore
pellets to the U.S. steel industry from its mines and pellet plants
located in Michigan and Minnesota. Cliffs also produces
low-volatile metallurgical coal in the U.S. from its mines located
in West Virginia and Alabama. Additionally, Cliffs operates an
iron ore mining complex in Western Australia and owns two
non-operating iron ore mines in Eastern Canada. Driven by the core
values of social, environmental and capital stewardship, Cliffs'
employees endeavor to provide all stakeholders operating and
financial transparency.
On Jan. 27, 2015, Bloom Lake General Partner Limited and certain of
its affiliates, including Cliffs Quebec Iron Mining ULC commenced
restructuring proceedings in Montreal, Quebec, under the Companies'
Creditors Arrangement Act (Canada). The initial CCAA order will
address the Bloom Lake Group's immediate liquidity issues and
permit the Bloom Lake Group to preserve and protect its assets for
the benefit of all stakeholders while restructuring and sale
options are explored.
The Company reported a net loss of $8.31 billion in 2014 following
net income of $362 million in 2013.
As of Sept. 30, 2015, the Company had $2.27 billion in total
assets, $4.03 billion in total liabilities and a $1.75 billion
total deficit.
* * *
As reported by the TCR on Feb. 3, 2015, Standard & Poor's Ratings
Services said it lowered its corporate credit rating on Cliffs
Natural Resources Inc. to 'B' from 'BB-'. The downgrade of
Cleveland-based Cliffs Natural Resources is driven by a revision
of the company's financial risk profile to "highly leveraged" from
"aggressive" as a result of S&P's lowered iron ore price
assumptions. The 24% cut to $65 per metric ton marked the
third downward revision since early 2014, when S&P's forecast
prices were more than $100 per metric ton.
The TCR reported in March 2015 that Moody's Investors Service
downgraded Cliffs Natural Resources Inc. Corporate Family Rating
and Probability of Default Rating to 'B1' and 'B1-PD'
respectively. "The downgrade in the CFR to 'B1' reflects
expectations for a weaker performance in the Asia Pacific iron ore
(APIO) segment, which has a greater exposure to the movement of
iron ore prices in the seaborne market," said Carol Cowan, Moody's
senior vice president.
CRAILAR INC: Seeks U.S. Recognition of CCAA Reorganization
----------------------------------------------------------
Producer of natural fibers Crailar Inc. is seeking recognition in
the United States of a reorganization proceeding pending in Canada
by filing a Chapter 15 petition in the U.S. Bankruptcy Court for
the District of South Carolina. The Bowra Group Inc. signed the
petition as duly appointed Monitor and foreign representative of
Crailar.
The Debtor's assets located in the United States consist of
equipment including a Laroche decortication line with air handling
system, an Erbatech cotton bleaching line, conveyors, harvesting
equipment, miscellaneous yard equipment, a pickup truck, a tractor,
a loader, a forklift and a scale.
The Petitioner said U.S. recognition is necessary to promote the
goals of the CCAA Initial Order and to ensure its implementation.
If granted by the Bankruptcy Court, all creditors are prohibited
from, among other things, commencing or continuing any action or
proceeding against the Debtor and transferring or disposing of any
of the Debtor's assets.
On Nov. 5, 2015, Crailar Inc. and its affiliates Crailar
Technologies Inc., Hemptown USA, Inc., 0697872 B.C. Ltd., Crailar
Fiber Technologies Inc. and HTnaturals Apparel Corp. filed a
petition in the Supreme Court of British Columbia pursuant to the
Companies' Creditors Arranagement Act, R.S.C. 1985 c. C-36.
The Main Petition sought an order from the Canadian Court, inter
alia, (a) authorizing and permitting the Foreign Debtors to file
with the Canadian Court a formal consolidated plan of compromise or
arrangement between the Foreign Debtors and their creditors,
pursuant to the provisions of the CCAA, and (b) appointing the
Petitioner as the Monitor, an officer of the Canadian Court, to
monitor the business and financial affairs of the Foreign Debtors
with the powers and obligations set out in the CCAA.
"Although the Foreign Debtors posted their best quarter in the
second quarter of 2015, the Company was still in a loss position
due to stubbornly high feedstock costs," says Lawrence M. Hershon,
Esq., at Parker Poe Adams & Bernstein LLP, counsel to the
Petitioner. He adds, "The current financial difficulties arise due
to unanticipated delays in achieving profitable production."
The Canadian Court, on Nov. 9, 2015, entered an order in the Main
Proceeding authorizing the Foreign Debtors to file with the
Canadian Court a formal consolidated plan of compromise with their
creditors in accordance with the provisions of the CCAA and
appointing the Petitioner as the Monitor.
The Foreign Debtors currently produce natural and propriety CRAiLAR
flax fibers targeted at the natural yarn and textile industries, as
well as deployment of their propriety processing technologies in
the cellulose pulp and composites industries.
The Foreign Debtors commenced production of the first stage of the
CRAiLAR flax fibers process in the first quarter of fiscal 2013 at
a leased 147,000 square foot flax processing facility located at
1728 N. Old River Road in Pamplico, South Carolina. The Foreign
Debtors suspended operations at the Facility in the third quarter
of 2013, intending to resume operations once improved bale opening
equipment had been built and installed and the air handling system
had been improved. However, operations never resumed at the
Facility, which has remained essentially shuttered since Sept. 30,
2013.
During 2014, the Foreign Debtors successfully produced commercial
grade flax fiber at their facility in Ieper, Belgium and moved from
full scale proof of concept to commercial production for large
global customers.
About Crailar Inc.
Crailar Inc., through The Bowra Group Inc. as foreign
representative, filed Chapter 15 bankruptcy petition (Bankr. D.
S.C. Case No. 15-06243) on Nov. 20, 2015. The Debtor estimated
both assets and debts in the range of $10 million to $50 million.
Parker Poe Adams & Bernstein LLP serves as the Debtor's counsel.
Judge David R. Duncan has been assigned the case.
DEB STORES: Seeks to Pay $40K Postpetition Rent to Westfield
------------------------------------------------------------
Deb Stores Holding LLC, et al., ask the U.S. Bankruptcy Court for
the District of Delaware to approve a stipulation authorizing them
to make certain payments and transfers pursuant to the final DIP
Financing and Cash Collateral Order.
On Oct. 19, 2015, the Court entered an order granting Westfield,
LLC and Fox Valley Mall LLC's motion requiring payment of
postpetition rent in the amount of $39,517 to Westfield, LLC and
Fox Valley Mall.
The Debtors requested, and the Term Loan Agent agreed, to the
limited use of cash collateral to:
(a) make payments to holders of allowed 503(b)(9) claims but
solely from the 503(b)(9) Reserve, including an amount equal to
$8,275 in full satisfaction of the Extra Plastics Claim Request;
(b) make payments to utilities holding allowed administrative
claims from the Adequate Assurance Deposit and the Objecting
Utilities Account, with any excess funds after payment of utilities
to be treated as Residual Proceeds under the Final Financing Order
with 90% of such Residual Proceeds to be immediately and
indefeasibly paid to the Term Loan Agent for the benefit of the
Term Loan Lenders consistent with the Final
Financing Order; and
(c) release any remaining funds held in the segregated account
established by the Debtors for the payment of Agreed Stub Rent and
Disputed Stub Rent, which funds (in addition to funds held by the
Debtors that compromise the Debtors' 10%.
Colin R. Robinson, Esq., at Pachulski Stang Ziehl & Jones LLP,
counsel for the Debtors, filed a certification regarding order
granting stipulation authorizing certain payments and transfers
pursuant to the final financing order authorizing borrowing and use
of cash collateral.
About Deb Stores
Headquartered in Philadelphia, Pennsylvania, Deb Stores is a
mall-based retailer in the juniors "fast-fashion" specialty sector
that operates under the name "DEB" and offers moderately priced,
fashionable, coordinated women's sportswear, dresses, coats,
lingerie, accessories and shoes for junior and plus sizes. The
company, founded by Philip Rounick and Emma Weiner, opened its
first store under the name JOY Hosiery in Philadelphia,
Pennsylvania in 1932. As of Sept. 30, 2014, the Company operated
a total of 295 retail store locations (primarily in the East and
Midwest, especially Pennsylvania, Ohio and Michigan) as well as an
e-commerce channel.
On June 26, 2011, Deb Stores' predecessors -- DSI Holdings Inc.
and its subsidiaries -- sought Chapter 11 protection (Bankr. D.
Del. Lead Case No. 11-11941) and closed the sale of the assets
three months later to Ableco Finance, LLC, the agent for the first
lien lenders.
Deb Stores Holding LLC and eight affiliated companies commenced
Chapter 11 bankruptcy cases in Delaware on Dec. 4, 2014. The
Debtors sought to have their cases jointly administered, with
pleadings maintained on the case docket for Deb Stores Holding
(Case No. 14-12676). The cases are assigned to Judge Mary F.
Walrath.
Carl D. Neff at Delaware Bankruptcy Litigation reported that by
order dated Dec. 5, 2014, the Debtors' Chapter 11 cases were
consolidated for procedural purposes only and therefore are being
jointly administered pursuant to Bankruptcy Rule 1015(b).
Laura Davis Jones, Esq., Colin R. Robinson, Esq., at and Peter J.
Keane, Esq., at Pachulski Stang Ziehl & Jones LLP, in Wilmington,
Delaware, serve as counsel to the Debtors. Epiq Bankruptcy
Solutions, LLC, is the claims and noticing agent.
As of Dec. 31, 2014, the Debtors' most recent audited consolidated
financial statements reflected assets totaling $90.5 million and
liabilities totaling $120.1 million.
The Official Committee of Unsecured Creditors tapped Cooley LLP as
its lead counsel; Drinker Biddle & Reath LLP as its co-counsel;
and Zolfo Cooper, LLC as its bankruptcy consultants and financial
advisors.
DIAMONDHEAD CASINO: Court Denies Request for Interim Trustee
------------------------------------------------------------
Petitioning Creditors David A. Cohen, Arnold J. Sussman, and F.
Richard Stark ask the U.S. Bankruptcy Court for the District of
Delaware to direct the appointment of an Interim Chapter 7 Trustee,
or, alternatively, a Chapter 11 Trustee in the bankruptcy case of
Diamondhead Casino Corporation.
The crux of the Petitioning Creditors' argument is that management
has mismanaged the Property by not developing it in the last 15
years. Petitioning Creditors assert in the Emergency Motion that
the appointment of an interim trustee is necessary because
Diamondhead's management has: "(i) grossly mismanaged the Company
by refusing to pay what was due on the Notes, while continuing to
enrich themselves and run the Company primarily for their own
benefit; (ii) repeatedly acting contrary to the interests of its
creditors and shareholders; (iii) mislead investors about the
status of the Company to raise additional funds; and (iv) used ESOP
shares to entrench management."78 What is missing from this list is
any loss to the estate that will occur prior to the hearing on the
Motion to Dismiss, or what property will not be preserved in this
"gap period."
At argument, counsel for the Petitioning Creditors stressed the
lack of development of the Property, the loss of shareholder value
over the years, the mishandling of the ESOP, the Company's balance
sheet insolvency, alleged breaches of the duty of loyalty under
Delaware law, and misrepresentations made in both the solicitation
of funds from investors and in connection with the proxy contest.
Assuming, without deciding, the veracity of these allegations, they
do not show that a trustee is necessary in the gap period to
preserve property of the estate or prevent loss.
In a Memorandum Opinion dated November 13, 2015 which is available
at http://is.gd/MTasRlfrom Leagle.com, Judge Laurie Selber
Silverstein of the U.S. Bankruptcy Court for the District of
Delaware denied the request for an interim trustee because the
Petitioning Creditors have not met their burden of proof to show
that an interim trustee is necessary in the "gap period" to
preserve the property of the estate or to prevent loss to the
estate.
The case is In re: DIAMONDHEAD CASINO CORPORATION, Chapter 7,
Alleged Debtor, CASE NO. 15-11647 (LSS)(Bankr. D. Del.).
About Diamondhead Casino
Largo, Fla.-based Diamondhead Casino Corporation, from inception
through approximately August of 2000, operated gaming vessels in
international waters. The Company eventually divested itself of
its gaming operations to satisfy financial obligations to its
vendors, lenders and taxing authorities and to focus its resources
on the development of a casino resort in Diamondhead, Mississippi.
The Company owns, through its wholly-owned subsidiary, Mississippi
Gaming Corporation, an approximate 404.5 acre tract of unimproved
land in Diamondhead, Mississippi. The property is located at 7051
Interstate 10. The Company intends, in conjunction with unrelated
third parties, to develop the site in phases beginning with a
casino resort. The casino resort is expected to include a casino,
a hotel and spa, pools, a sport and entertainment center, a
conference center and a state-of-the-art recreational vehicle
park.
On August 6, 2015, an involuntary Chapter 7 bankruptcy petition
(Bankr. D. Del. 15-11647) was filed in Wilmington, Delaware
bankruptcy court by F. Richard Stark, Arnold J. Sussman and A.
David Cohen. The three creditors list combined claims of $150,000
in principal, plus interest due on certain promissory notes. On
Sept. 17, DDM Holdings filed a joinder to the involuntary
petition.
The Petitioning Creditors are represented by:
William E. Chipman, Jr., Esq.
Joseph B. Cicero, Esq.
Mark D. Olivere, Esq.
CHIPMAN BROWN CICERO & COLE, LLP
The Nemours Building
1007 North Orange Street, Suite 1110
Wilmington, DE 19801
Tel: 302-295-0193
Fax: 302-295-0199
E-mail: chipman@chipmanbrown.com
Cicero@chipmanbrown.com
olivere@chipmanbrown.com
- and -
John H. Genovese, Esq.
GENOVESE JOBLOVE & BATTISTA, PA
100 S.E. Second Street, 44th Floor
Miami, FL 33131
Tel: 305-349-2300
Fax: 305-349-2310
E-mail: jgenovese@gjb-law.com
Diamondhead Casino Corporation is represented in the involuntary
bankruptcy case by:
David L. Finger, Esq.
FINGER & SLANINA, P.A.
One Commerce Center
1201 Orange Street, Suite 725
Wilmington, DE 19801-1155
Tel: 302 884-6766
Fax: 302-984-1294
E-mail: dfinger@delawgroup.com
DIOCESE OF GALLUP: Lawyers Say Deal in Bankruptcy Case Near
-----------------------------------------------------------
ABI.org reported that according to Associated Press, attorneys for
a New Mexico diocese and its insurance companies say they are
optimistic they will soon reach a resolution during mediation talks
in their bankruptcy proceedings.
About Diocese of Gallup
The Diocese of Gallup, New Mexico, principally encompasses
American Indian reservations for seven tribes in northwestern New
Mexico and northeastern Arizona. It is the poorest diocese in the
U.S.
There are 38 active priests working in the Diocese and 27
permanent deacons also serve the Diocese along with five
seminarians. The Diocese and its missions, schools and ministries
employ approximately 50 people, and a significant number of
additional people offer their services as volunteers.
The diocese sought bankruptcy protection under Chapter 11 of the
Bankruptcy Code (Bankr. D. N.M. Case No. 13-bk-13676) on Nov. 12,
2013, in Albuquerque, New Mexico amid suits for sexual abuse
committed by priests.
The bishop previously said bankruptcy will be "the most merciful
and equitable way for the diocese to address its responsibility."
The abuse mostly occurred in the 1950s and early 1960s, the bishop
said.
The petition shows assets and debt both less than $1 million.
DOMARK INTERNATIONAL: BNY Mellon Has 19% Stake as of Oct. 31
------------------------------------------------------------
In a Schedule 13G filed with the Securities and Exchange
Commission, The Bank of New York Mellon Corporation, BNY Capital
Markets Holdings, Inc. and BNY Mellon Capital Markets, LLC,
disclosed that as of Oct. 31, 2015, they beneficially own
276,170 shares of common stock of Domark International, Inc.,
representing 19.09 percent of the shares outstanding. A copy of
the regulatory filing is available at http://is.gd/LIi5OE
About Domark International
Based in Lake Mary, Florida, DoMark International, Inc., was
incorporated under the laws of the State of Nevada on March 30,
2006. The Company was formed to engage in the acquisition and
refinishing of aged furniture using exotic materials and then
reselling it through interior decorators, high-end consignment
shops and online sales. The Company abandoned its original
business of exotic furniture sales in May of 2008 and pursued the
acquisition of entities to best bring value to the company and its
shareholders.
For the nine months ended Feb. 28, 2015, the Company reported a net
loss of $1.86 million on $0 of sales compared to a net loss of
$2.34 million on $0 of sales for the same period a year ago.
As of Aug. 31, 2015, the Company had $1.26 million in total assets,
$4.41 million in total liabilities and a $3.15 million total
stockholders' deficit.
DORSEY BUILDERS: Findlay Park to Be Auctioned on Dec. 10
--------------------------------------------------------
Jim Hook at Public Opinion reports that Dorsey Builders, Inc.'s 30
acres of Phase 2 Findlay Park will be sold at a public auction to
be conducted by A.J. Billig & Co. on Dec. 10, 2015. Citing the
auctioneer, the report adds that it will be sold to the highest
bidder without minimum or reserve.
The Company listed in court documents the value of Phase 2 at
$800,000. According to Public Opinion, the five lots in Phase 1 on
Buchanan Drive were valued at $175,000, with creditors claiming
$244,235 against Dorsey for the lots.
Public Opinion relates that the five remaining vacant lots from the
original Phase 1 also will be sold. The report states that other
Dorsey assets to be sold include four building lots and 25
unbuildable acres at Hay Meadow Overlook near Mount Airy, Maryland;
a 1.5-acre lot off Frederick Road (Md. 144) near Woodbine,
Maryland, and 8 acres zoned for conservation near Sykesville,
Maryland.
The report recalls that the Company, which is the developer of
Findlay Park, for years failed to dedicate the streets, water lines
or sewer in Phase 1 to the borough. According to the report, The
Borough of Mercersburg threatened legal action against the Company
in 2011. The report states that the borough currently owns the
utilities.
About Dorsey Builders
Headquartered in Sykesville, Maryland, Dorsey Builders, Inc., filed
for Chapter 11 bankruptcy protection (Bankr. D. Md. Case No.
12-25952) on Aug. 30, 2012, estimating its assets at between $1
million and $10 million. The petition was signed by Phillip H.
Dorsey, president.
Judge Nancy V. Alquist presides over the case.
James A. Vidmar, Jr., Esq., at Yumkas, Vidmar & Sweeney, LLC,
serves as the Company's bankruptcy counsel.
Affiliates Phillip Hamilton Dorsey and Claudia Annette Dorsey
(Bankr. D. Md. Case No. 12-22646) filed a separate Chapter 11
bankruptcy petition on July 6, 2012.
EDENOR SA: Extends Technical Advisory Contract with EASA
--------------------------------------------------------
The Board of Directors of Edenor SA, in its meeting held Nov. 10,
2015, decided to approve the extension of the term of the Technical
Advisory Contract, originally subscribed on April 4, 2006, between
Edenor and Electricidad Argentina S.A. (EASA), according to a
regulatory filing with the Securities and Exchange Commission. In
compliance of sections 72 and 73 of the Capital Market Law, the
Audit Committee has expressed its approval to the mentioned
addendum.
About Edenor SA
Headquartered in Buenos Aires, Argentina, Edenor S.A. (NYSE: EDN;
Buenos Aires Stock Exchange: EDN) is the largest electricity
distribution company in Argentina in terms of number of customers
and electricity sold (both in GWh and Pesos). Through a
concession, Edenor distributes electricity exclusively to the
northwestern zone of the greater Buenos Aires metropolitan area
and the northern part of the city of Buenos Aires.
Edenor SA reported a loss of ARS780 million on ARS3.59 billion of
revenue for the year ended Dec. 31, 2014, compared with profit of
ARS773 million on ARS3.44 billion of revenue for the year ended
Dec. 31, 2013.
As of June 30, 2015, Edenor had ARS 10.74 billion in total assets,
ARS 9.63 billion in total liabilities and ARS 1.11 billion in total
equity.
EPWORTH VILLA: Has Until Dec. 18 to File Chapter 11 Plan
--------------------------------------------------------
The Hon. Tom R. Cornish of the U.S. Bankruptcy Court for the
Western District of Oklahoma extended Central Oklahoma United
Methodist Retirement Facility, Inc., doing business as Epworth
Villa's exclusive periods to file a chapter 11 plan until Dec. 18,
2015.
Formed in 1986 and affiliated with the Oklahoma Conference of the
United Methodist Church, Central Oklahoma United Methodist
Retirement Facility, Inc., is a not-for-profit corporation that
owns Epworth Villa, a continuing care retirement community for
persons age 62 and older, located at 14901 N. Pennsylvania Avenue,
Oklahoma City, Oklahoma. Presently, Epworth Villa includes 264
independent living units (cottages and apartment homes), 118
assisted living units with maximum capacity of 130 beds, and 87
nursing care beds. The corporation's sole member is Epworth
Living, Inc.
Epworth Villa is currently undergoing a renovation and expansion
project that is projected to be completed in early Summer of 2015.
The construction, renovation and expansion of its facilities are
financed through revenue bonds under the bond indenture from the
Oklahoma County Finance Authority to BancFirst, as indenture
trustee. Those obligations, in the aggregate principal Petition
Date amount of $87,835,000, are secured by a mortgage and security
interest in the Facility and other assets of Epworth Villa's
estate.
Epworth Villa sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. W.D. Okla. Case No. 14-12995) on July 18, 2014.
The Chapter 11 case has been reassigned to Judge Tom R. Cornish,
according to an April 15, 2015 order.
The Debtor tapped Gable & Gotwals, P.C., in Oklahoma City,
Oklahoma, as general bankruptcy counsel.
In amended schedules, the Debtor disclosed total assets of
$117,659,919 and total liabilities of $108,037,034 as of the
Chapter 11 filing.
On Aug. 13, 2014, the Office of the United States Trustee
appointed E. Marissa Lane as the Patient Care Ombudsman in this
case.
ESSAR STEEL: Ontario Court Grants CCAA Initial Order
----------------------------------------------------
Essar Steel Algoma Inc., Essar Tech Algoma Inc., Algoma Holdings
B.V., Essar Steel Algoma (Alberta) ULC, Cannelton Iron Ore Company
and Essar Steel Algoma Inc. USA obtained an Initial Order from the
Ontario Superior Court of Justice Commercial List for Companies'
Creditors Arrangement Act creditor protection relief.
The Ontario Court authorized the Applicants to continue to retain
their employees, consultants, agents, experts, accountants, counsel
and other persons.
Under the terms of the CCAA Initial Order, Ernst & Young Inc. was
appointed as the Monitor, an officer of the Court, to monitor the
business and financial affairs of the Applicants.
The Ontario Court also authorized the Applicants to borrow under
the Senior Secured, Priming and Super-Priority Debtor-in-Possession
Revolving Credit Agreement dated as of Nov. 9, 2015, among the
Applicants and Deutsche Bank AG New York Branch and the lenders, up
to US$200 million.
The Initial Order further provides that until and including Jan.
15, 2016, no proceeding or enforcement process in any court or
tribunal shall be commenced against the Applicants or the Monitor.
A copy of the Initial Order is available for free at:
http://bankrupt.com/misc/ESSAR_CCAA_InitialOrder.pdf
About Essar Steel
Steel manufacturers Essar Steel Algoma Inc. USA, Essar Steel Algoma
Inc., Cannelton Iron Ore Company, Essar Steel Algoma (Alberta) ULC
and Essar Tech Algoma Inc. filed Chapter 15 bankruptcy petitions
(Bankr. D. Del. Case Nos. 15-12270 to 15-12274) on Nov. 9, 2015.
Algoma Holdings B.V. subsequently filed under Chapter 15 on Nov.
20, 2015. The Debtors estimated assets and liabilities of more
than $1 billion. Hon. Brendan Linehan Shannon has been assigned
the Chapter 15 case. Richards, Layton & Finger, P.A. serves as the
Petitioner's counsel.
Robert J. Sandoval, general counsel, is the duly authorized foreign
representative.
EXCELITAS TECHNOLOGIES: Moody's Affirms B3 CFR, Outlook Negative
----------------------------------------------------------------
Moody's Investors Service changed the rating outlook for Excelitas
Technologies Holding Corp. to negative from stable. At the same
time, Moody's affirmed the Corporate Family Rating (CFR) and
Probability of Default Rating (PDR) of the company at B3 and B3-PD,
respectively. The outlook change to negative largely reflects the
recent weakening of the company's credit metrics as a result of
materially lower than anticipated revenues, profitability and cash
flow generation over the last few quarters, and the likelihood that
credit metrics will remain challenged over the next 12 to 18
months. The rating affirmation reflects Moody's expectation that
the company will maintain an adequate liquidity profile with
reduced revolver reliance over the next few quarters.
According to Moody's Analyst Brian Silver, "Excelitas recent
performance has been challenged by slowing demand and some order
delays related to weakness in certain end-markets, foreign exchange
headwinds from the strengthening US dollar and supply chain
constraints. Moody's anticipates some improvement in the
near-to-intermediate term, but remain cautious on the longer-term
performance of the company as a result of very weak credit metrics
and limited earnings visibility."
These ratings have been affirmed:
B3 Corporate Family Rating;
B3-PD Probability of Default Rating;
$40 million 1st lien revolver due 2018 at B2 (LGD3);
$620 million 1st lien term loan B due 2020 at B2 (LGD3); and
$40 million 1st lien delayed draw term loan due 2020 at B2
(LGD3).
The rating outlook has been changed to negative from stable.
RATINGS RATIONALE
Excelitas' B3 Corporate Family Rating largely reflects its very
high financial leverage (slightly north of 8 times Moody's adjusted
debt-to-EBITDA) and expectations for only moderate deleveraging
over the next 12 to 18 months. It also incorporates the risks
associated with the cyclical and potentially volatile end-markets
the company serves and the company's foreign exchange exposure.
However, the rating is supported by Excelitas' enhanced size,
scale, geographic penetration and product offerings post-Qioptiq,
as well as its double-digit EBITDA margins and adequate liquidity
profile. In addition, the rating recognizes the company's strong
position in the global custom designed photonics end-markets, its
diverse blue-chip customer base and reputation for quality in
manufacturing complex engineered products, many of which are used
in highly regulated sectors that have zero tolerance for failure.
Risk of end-market cyclicality is partially offset by the company's
diversification among different industries with varying growth
drivers. The company's technological expertise, strengthened by
engineer-to-engineer relationships with customers and often
supported by a collaborative production process, creates high
barriers to entry for competitors while raising switching costs for
customers due to the mission critical nature of the company's
products.
The negative outlook reflects limited earnings visibility and the
potential for continued weak credit metrics.
Although not anticipated in the near-term, the ratings could be
upgraded if the company is able to generate healthy levels of free
cash flow and bring adjusted leverage below 5.5 times (Moody's
adjusted debt-to-EBITDA). Alternatively, the ratings could be
downgraded if the company's liquidity weakens such that there is
increasing revolver reliance, if covenant cushion tightens further,
or if the company is unable to generate positive free cash flow on
an annual basis. In addition, the ratings could be pressured if
there is a loss of a material contract, if leverage increases from
currently high levels and is sustained above 7.5 times, or if
interest coverage (EBITA-to-interest) falls below 1.0 time.
The principal methodology used in these ratings was Global
Manufacturing Companies published in July 2014.
Excelitas Technologies Corp. is a global provider of custom
designed photonic components, sub-systems, and integrated solutions
to OEMs serving a wide range of applications within various health,
environmental, safety, security, industrial, aerospace and defense
markets. The company operates through two primary business units;
1) Commercial (i.e. lighting, detection and optics), and 2) Defense
and Aerospace (i.e. optical systems and advanced electronics
systems). Veritas Capital purchased Excelitas, the former
Illumination and Detection Solutions business of PerkinElmer, Inc.,
for approximately $500 million in Nov. 2010. In October 2013
Excelitas completed the transformational acquisition of Qioptiq
S.a.r.l., a privately held global supplier of optical and photonic
technology solutions such as lenses and optical modules. In Nov.
2013, the company completed the bolt-on acquisition of Lumen
Dynamic Holdings (Lumen), a privately held manufacturer of lamp and
LED-based UV curing and fluorescence illumination systems.
Excelitas' revenues for the twelve months ending Oct. 4, 2015, were
approximately
$665 million.
EXELIXIS INC: Incurs $47.5 Million Net Loss in Third Quarter
------------------------------------------------------------
Exelixis, Inc., filed with the Securities and Exchange Commission
its quarterly report on Form 10-Q disclosing a net loss of $47.6
million on $9.85 million of total revenues for the three months
ended Sept. 30, 2015, compared to a net loss of $62.6 million on
$6.29 million of total revenues for the same period during the
prior year.
For the nine months ended Sept. 30, 2015, the Company reported a
net loss of $126 million on $27.3 million of total revenues
compared to a net loss of $211 million on $17.8 million of total
revenues for the same period a year ago.
As of Sept. 30, 2015, the Company had $363.24 million in total
assets, $437 million in total liabilities and a $74.2 million total
stockholders' deficit.
"Over the last few months, we have made significant strides with
our lead development program, cabozantinib in advanced RCC,
including receiving Breakthrough Therapy Designation from the FDA,
initiating our rolling NDA submission and obtaining accelerated
assessment status from the European Medicines Agency's CHMP," said
Michael M. Morrissey, Ph.D., president and chief executive officer
of Exelixis. "At the same time, we have significantly strengthened
our organization's capabilities, including the addition of
high-level personnel in medical affairs, sales, and marketing in
advance of the potential commercialization of cabozantinib in
advanced RCC."
Dr. Morrissey continued: "Moreover, after the third quarter closed,
Exelixis achieved a major milestone when COTELLIC became the second
medicine to emerge from our research and development organization
that has received FDA approval. We are excited to embark on the
launch of COTELLIC in the U.S., working closely with our partners
Genentech and Roche to commercialize the product, including
fielding one quarter of the U.S. sales force."
A full-text copy of the Form 10-Q is available for free at:
http://is.gd/Jv3Se9
About Exelixis Inc.
Headquartered in South San Francisco, California, Exelixis, Inc.,
develops innovative therapies for cancer and other serious
diseases. Through its drug discovery and development activities,
Exelixis is building a portfolio of novel compounds that it
believes has the potential to be high-quality, differentiated
pharmaceutical products.
Exelixis reported a net loss of $269 million on $25.1 million of
total revenues for the year ended Dec. 31, 2014, compared with a
net loss of $245 million on $31.3 million of total revenues in
2013.
EYELOGIC SYSTEMS: Voluntary Delists Shares, Plans Wind-Up
---------------------------------------------------------
Eyelogic Systems Inc. on Nov. 23 disclosed that it has successfully
applied to voluntarily delist its shares from trading on the TSX
Venture Exchange. As Eyelogic's primary asset is now cash, the
Company intends on making a distribution to shareholders and
calling a shareholders meeting to approve a wind-up of the Company.
Further details on the distribution and the wind-up will be
announced in the coming days once finalized.
Eyelogic Systems Inc is a Canadian computer software company.
F-SQUARED INVESTMENT: AlphaSector Okayed Dissolve Hedge Fund
------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware authorized
AlphaSector LLS GP1, LLC, to dissolve hedge fund F-Squared U.S.
Sector Opportunities Fund, LP.
As reported by The Troubled Company Reporter, AlphaSector, the sole
general partner of the hedge fund, contended that the hedge fund
was formed on Nov. 4, 2011, pursuant to the Delaware Revised
Uniform Limited Partnership Act and a Limited Partnership Agreement
of the Hedge Fund, dated Dec. 1, 2011, between the general partner
and the limited partners that were party thereto.
The General Partner further contended that prior to the closing
date, the hedge fund served as a marketing asset for the Debtors'
business. It asserted that the hedge fund, which invested its
funds based on the Debtors' investment strategies, allowed the
Debtors to showcase the success of such strategies based on the
actual track record of the hedge fund. The general partner
contended that the hedge fund is not a Debtor in the Chapter 11
cases but the general partner is a Debtor.
The general partner related that when the Stalking Horse Agreement
was originally executed, it was uncertain whether the hedge fund
would be a purchased asset or an excluded asset under the
agreement. It further related that prior to the closing date,
Broadmeadow determined that it did not desire to acquire the hedge
fund and, therefore, designated the hedge fund as an excluded
asset. The general partner contends that because the hedge fund is
an excluded asset, the Debtors are obligated under the terms of the
stalking horse agreement to file their motion and, upon obtaining
approval of such motion, wind down and dissolve the hedge fund.
About F-Squared Investment
Headquartered in Wellesley, MA, F-Squared Investments, Inc. --
http://www.f-squaredinvestments.com-- is a privately owned
investment manager. The firm primarily provides its services to
other investment advisers. It also caters to individuals, high
net
worth individuals, and pension and profit sharing plans. The firm
provides index management services. It manages separate
client-focused equity, fixed income, and multi-asset portfolios.
The firm invests in the public equity, fixed income, and
alternative investment markets across the globe. It makes all its
investments through exchange-traded funds. The firm invests in
small-cap stocks of companies across diversified sectors.
F-Squared Investment Management, LLC and eight of its affiliates
filed Chapter 11 bankruptcy petitions (Bankr. D. Del. Lead Case
No. 15-11469) on July 8, 2015. The petition was signed by Laura
Dagan as president and chief executive officer. The cases are
assigned to Laurie Selber Silverstein.
Richards, Layton & Finger, P.A. serves as the Debtors' counsel.
Gennari Aronson, LLP represents the Debtors as special corporate
counsel. Grail Advisory Partners LLC (d/b/a PL Advisors) and
Managed Account Services, LLC act as the Debtors' financial
advisors and investment bankers. Stillwater Advisory Group LLC is
the Debtors' crisis managers and restructuring advisors. BMC
Group, Inc. acts as the Debtors' claims and noticing agent.
F-SQUARED INVESTMENT: Has Until Jan. 4 to Remove Civil Actions
--------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware extended
until Jan. 4, 2016, F-Squared Investment Management, LLC, et al.'s
deadline to remove civil actions.
About F-Squared Investment Management, LLC.
Headquartered in Wellesley, MA, F-Squared Investments, Inc. --
http://www.f-squaredinvestments.com-- is a privately owned
investment manager. The firm primarily provides its services to
other investment advisers. It also caters to individuals, high
net worth individuals, and pension and profit sharing plans. The
firm provides index management services. It manages separate
client-focused equity, fixed income, and multi-asset portfolios.
The firm invests in the public equity, fixed income, and
alternative investment markets across the globe. It makes all its
investments through exchange-traded funds. The firm invests in
small-cap stocks of companies across diversified sectors.
F-Squared Investment Management, LLC and eight of its affiliates
filed Chapter 11 bankruptcy petitions (Bankr. D. Del. Lead Case
No. 15-11469) on July 8, 2015. The petition was signed by Laura
Dagan as president and chief executive officer. The cases are
assigned to Laurie Selber Silverstein.
Richards, Layton & Finger, P.A. serves as the Debtors' counsel.
Gennari Aronson, LLP represents the Debtors as special corporate
counsel. Grail Advisory Partners LLC (d/b/a PL Advisors) and
Managed Account Services, LLC act as the Debtors' financial
advisors and investment bankers. Stillwater Advisory Group LLC is
the Debtors' crisis managers and restructuring advisors. BMC
Group, Inc. acts as the Debtors' claims and noticing agent.
FIRST DATA: Offering 160 Million Class A Common Stock
-----------------------------------------------------
First Data Corporation filed with the Securities and Exchange
Commission filed an amended Form S-1 registration statement with
the Securities and Exchange Commission relating to an initial
public offering of 160,000,000 shares of the Company's Class A
common stock.
Prior to this offering, there has been no public market for the
Company's Class A common stock. The Company currently expects that
the initial public offering price of its Class A common stock will
be between $18.00 and $20.00 per share. The Company intends to
apply to list its Class A common stock on the New York Stock
Exchange (NYSE) under the symbol "FDC."
Upon consummation of this offering, the Company will have two
classes of common stock: the Company's Class A common stock and its
Class B common stock. The rights of the holders of Class A common
stock and Class B common stock will be identical, except with
respect to voting, conversion, and transfer restrictions applicable
to the Class B common stock. Each share of Class A common stock
will be entitled to one vote. Each share of Class B common stock
will be entitled to ten votes and will be convertible into one
share of Class A common stock automatically upon transfer, subject
to certain exceptions.
After the completion of this offering, Kohlberg Kravis Roberts &
Co. L.P. and its affiliates will continue to control a majority of
the voting power of the Company's common stock. As a result, the
Company will be a "controlled company" within the meaning of the
corporate governance standards of the NYSE.
A copy of the Form S-1/A is available for free at:
http://is.gd/EpZkKb
About First Data
Based in Atlanta, Georgia, First Data Corporation provides
commerce and payment solutions for financial institutions,
merchants, and other organizations worldwide.
First Data reported a net loss attributable to the Corporation of
$458 million on $11.2 billion of total revenues for the year ended
Dec. 31, 2014, compared with a net loss attributable to the
Corporation of $869 million on $10.8 billion of total revenues
during the prior year.
As of Sept. 30, 2015, the Company had $33.4 billion in total
assets, $31.4 billion in total liabilities and $1.98 billion in
total equity.
* * *
The Company carries a 'B3' corporate family rating, with a
stable outlook, from Moody's Investors Service, a 'B' corporate
credit rating, with stable outlook, from Standard & Poor's, and
a 'B' long-term issuer default rating from Fitch Ratings.
FRAC SPECIALISTS: $229,000 Sale of Vehicles Approved
----------------------------------------------------
Frac Specialists, LLC, et al., won approval from the U.S.
Bankruptcy Court for the Northern District of Texas to sell certain
vehicles to Huffines Chevrolet free and clear of all claims,
encumbrances, liens, and interests pursuant to Section 363(f) of
the Bankruptcy Code.
From the total sales price of $229,000, Frac Specialists will
receive $179,600 and Cement Specialists, LLC, will receive $49,400
for the sale of their respective vehicles.
Promptly after the close of the sale, Frac will make these payments
from the proceeds of the sale on account of outstanding 2015
personal property taxes, and such amounts will be applied to the
principal balances of such taxes:
* Midland ISD $2,048
* Midland Hospital $215
* Midland College $226
* Midland Utility District $50
* Midland County $253
-------
Total $2,791
Promptly after the close of the sale, Cement will make the
following payments from the proceeds of the sale on account of
outstanding 2015 personal property taxes, and such amounts will be
applied to the principal balances of such taxes:
* Midland ISD $563
* Midland Hospital $59
* Midland College $62
* Midland Utility District $14
* Midland County $70
-------
Total $768
The proceeds of the sale, net of the Tax Payments, will be
deposited and maintained in a separately segregated account, and
will not be disbursed or distributed without further Court Order or
the consent of Capital One, N.A. To the extent the net proceeds
are attributable to assets that were subject to the adequate
protection liens of Capital One, the net proceeds will be subject
to Capital One's Adequate Protection Liens, but will not constitute
its Cash Collateral, all as such terms are defined in the Final
Order Granting Debtors' Motion for Entry of Interim and Final
Orders Authorizing the Use of Cash Collateral and Granting Adequate
Protection.
About Frac Specialists
Frac Specialists, LLC, Cement Specialists, LLC, and Acid
Specialists, LLC, are oilfield service providers serving the
exploration and production industry within the Permian Basin.
Noble Natural Resources, LLC, Javier Urias and Alex Hinojos
collectively own 100% of the membership interests in the
Companies.
The Companies sought Chapter 11 bankruptcy protection (Bankr. N.D.
Tex. Lead Case No. 15-41974), on May 17, 2015. Larry P. Noble
signed the petitions as manager.
On May 27, 2015, the Court directed the joint administration of
the cases. The Debtors disclosed $61,675,313 in assets and
$57,982,488 in liabilities.
The Debtors tapped Lynda L. Lankford, Esq., and Jeff P. Prostok,
Esq., at Forshey & Prostok, LLP, as their counsel.
The U.S. Trustee appointed five creditors to serve on an official
committee of unsecured creditors. The Committee is represented by
Mark E. Andrews, Esq., and Aaron M. Kaufman, Esq., at Dykema Cox
Smith.
* * *
The Debtor filed its cash collateral budget for the period of Sept.
28, 2015, to Oct. 25, 2015. A copy of the budget is available for
free at:
http://bankrupt.com/misc/Frac_Specialists_274_Cash_Budget.pdf
FRAC SPECIALISTS: Court Approves $474,000 Sale of Disposal Units
----------------------------------------------------------------
Frac Specialists, LLC, et al., won approval from the U.S.
Bankruptcy Court for the Northern District of Texas to sell certain
disposal units to Trux-N-Parts, Inc., for $474,000 free and clear
of all claims and encumbrances pursuant to section 363(f) of the
Bankruptcy Code.
From the total sales price of $474,000, Frac Specialists will
receive $437,000 and Cement Specialists, LLC, will receive $37,000
for the sale of their respective Disposal Units.
All liens, claims, encumbrances, and interests existing against the
Disposal Units as of the date of sale shall attach to the proceeds
of sale
Promptly after the close of the sale, Frac will make these payments
from the proceeds of the sale on account of outstanding 2015
personal property taxes, and such amounts shall be applied to the
principal balances of such taxes:
* Midland ISD $4,982
* Midland Hospital $524
* Midland College $550
* Midland Utility District $121
* Midland County $615
-------
Total $6,792
Promptly after the close of the sale, Cement will make the
following payments from the proceeds of the sale on account of
outstanding 2015 personal property taxes, and such amounts shall be
applied to the principal balances of such taxes:
* Midland ISD $422
* Midland Hospital $44
* Midland College $47
* Midland Utility District $10
* Midland County $52
-------
Total $575
The proceeds of the sale, net of the Tax Payments, will be
deposited and maintained in a separately segregated account, and
shall not be disbursed or distributed without further Court Order
or the consent of Capital One, N.A. To the extent the Net Proceeds
are attributable to assets that were subject to the Adequate
Protection Liens of Capital One, such Net Proceeds will be subject
to Capital One's Adequate Protection Liens, but will not constitute
its Cash Collateral, all as such terms are defined in the Final
Order Granting Debtors' Motion for Entry of Interim and Final
Orders Authorizing the Use of Cash Collateral and Granting Adequate
Protection.
About Frac Specialists
Frac Specialists, LLC, Cement Specialists, LLC, and Acid
Specialists, LLC, are oilfield service providers serving the
exploration and production industry within the Permian Basin.
Noble Natural Resources, LLC, Javier Urias and Alex Hinojos
collectively own 100% of the membership interests in the
Companies.
The Companies sought Chapter 11 bankruptcy protection (Bankr. N.D.
Tex. Lead Case No. 15-41974), on May 17, 2015. Larry P. Noble
signed the petitions as manager.
On May 27, 2015, the Court directed the joint administration of
the cases. The Debtors disclosed $61,675,313 in assets and
$57,982,488 in liabilities.
The Debtors tapped Lynda L. Lankford, Esq., and Jeff P. Prostok,
Esq., at Forshey & Prostok, LLP, as their counsel.
The U.S. Trustee appointed five creditors to serve on an official
committee of unsecured creditors. The Committee is represented by
Mark E. Andrews, Esq., and Aaron M. Kaufman, Esq., at Dykema Cox
Smith.
* * *
The Debtor filed its cash collateral budget for the period of Sept.
28, 2015, to Oct. 25, 2015. A copy of the budget is available for
free at:
http://bankrupt.com/misc/Frac_Specialists_274_Cash_Budget.pdf
GENERAL MOTORS: Groups Ask 2nd Circ. to Reverse Protection Ruling
-----------------------------------------------------------------
Emily Field at Bankruptcy Law360 reported that three groups of
consumers in the General Motors ignition switch litigation asked
the Second Circuit on Nov. 16, 2015, to reverse a bankruptcy
court's ruling that bankruptcy protections block most car owners
seeking to sue New GM for billions of dollars over the defect.
One group, owners and lessees of cars made by "Old GM" who seek to
recoup economic losses after it was revealed that both Old GM and
New GM purposefully hid the ignition switch defect.
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.
GENESYS RESEARCH: U.S. Asks for Time to Request Application Title
-----------------------------------------------------------------
The United States of America, on behalf of the Department of Energy
("DOE"), asks the U.S. Bankruptcy Court for the District of
Massachusetts, Eastern Division, to approve a stipulation that it
had entered into with Harold Murphy, Chapter 11 Trustee, in
connection with certain rights associated with the intellectual
property described in United States patent application number
13/818,960, titled "Compositions and Methods for Treating
Neoplasia" ("Application").
The Debtor was the recipient of a DOE grant agreement captioned
"Multi-Scale Systems Biology of Low-Dose Carcinogenesis Risk".
Funded by the DOE Grant and another federal grant from the National
Aeronautical and Space Administration, the Debtor's research led to
the filing of the Application.
The stipulation provides the United States with additional time to
request title to the invention described in the Application and
requires the Trustee to take actions necessary during that time to
prevent the Application from being deemed abandoned.
The DOE contends that the stipulation: (1) maintains the status
quo; (2) benefits the estate by precluding the United States from
requesting immediate title to the Application; and (3) provides the
United States and the Trustee with additional time to ascertain the
details of the Application and the proper course forward.
The United States of America, on behalf of the Department of
Energy, is represented by:
Victor W. Zhao, Esq.
Margaret M. Newell, Esq.
DEPARTMENT OF JUSTICE
1100 L. Street, NW
Washington, DC 20530
Telephone: (202)307-0958
Facsimile: (202)514-9163
E-mail: victor.w.zhao@usdoj.gov
About GeneSys Research
GeneSys Research Institute, Inc. filed a Chapter 11 bankruptcy
petition (Bankr. D. Mass Case No. 15-12794) on July 14, 2015. The
petition was signed by Robert Stemple, clerk and treasurer.
Parker
& Associates serves as the Debtor's counsel. The Debtor estimated
assets of $10 million to $50 million and liabilities of at least
$1
million. The case is assigned to Judge Joan N. Feeney.
GLOBAL MARITIME: Wants to Hire Gardere Wynne as Counsel
-------------------------------------------------------
GMI USA Management Inc. and its debtor-affiliates ask the U.S.
Bankruptcy Court for the Southern District of New York for
permission to employ Gardere Wynne Sewell LLP as their counsel.
The firm will:
a) advise the Debtors of their powers and duties in the
management of their property;
b) attend meetings and negotiate with representatives of
creditors and other parties in interest;
c) assist the Debtors in the preparation of all administrative
documents required to be filed or prepared herein, and to prepare,
on behalf of the Debtors, all necessary applications, motions,
answers, responses, orders, reports and other legal documents
required;
d) assist the Debtors, if necessary, in obtaining use of cash
collateral, if any, or agreements for Debtors-in-possession
financing, and seeking Court approval of any such use or
financing;
e) take such action as is necessary to preserve and protect
the Debtors' assets and interests therein, including prosecution of
actions on the Debtors' behalf, defending any action commenced
against the Debtors, and representing the Debtors' interests in
negotiations concerning all litigation in which the Debtors are
involved, including objections to claims filed against the estate;
f) advise the Debtors in connection with any potential sale or
assignment of assets including executor contracts;
g) assist the Debtors in the formulation of a disclosure
statement and in the formulation, confirmation, and consummation of
a plan of liquidation or reorganization;
h) appear before the Court, any appellate courts and the
United States Trustee and protect the interests of the Debtors'
estate before such courts and the United States Trustee; and
i) perform any and all other legal services that may be
necessary to protect the rights and interests of the Debtors in the
chapter 11 proceedings and any actions hereafter commenced in these
chapter 11 cases.
The firm says it will charge its standard hourly rates, which for
the fiscal year ended March 31, 2015, are as follows:
Designation Hourly Rate
----------- -----------
Partners $485-$950
Associates $240-$565
Paraprofessionals $215-$345
The firm's primary team on this particular engagement will be John
Melko and Michael Riordan. John Melko and Michael Riordan, those
hourly rates are $805 and $415 respectively. However, in
recognition that these cases are intended to be orderly wind downs,
the firm has agreed to apply its discounted rates for all
timekeepers, roughly a 15% discount. By way of example, the
discounted rates for Messrs. Melko and Riordan are $685 and $350.
The Debtors say, as compensation for prepetition restructuring and
Chapter 11 case preparation, they made these retainer deposits with
the firm:
September 1, 2015 $ 99,975
September 15, 2015 $ 59,975
--------------------------------
Total $ 159,950
The Debtors note those amounts were taken into income and applied
to the September invoice for August time and expense, and a
mid-month estimated invoice through the filing of the petition.
The actual preparation time and expense, including filing
retainers, was more than anticipated, leaving a negative balance of
$955. The fir wrote off the outstanding balance as of the Petition
Date, the Debtors say.
The Debtors assure 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:
John Melko, Esq.
Michael Riordan, Esq.
GARDERE WYNNE SEWELL, LLP
3000 Thanksgiving Tower
1601 Elm Street
Dallas, TX 75201
Tel: 713.276.5727
713.276.5178
Email: jmelko@gardere.com
mriordan@gardere.com
About GMI USA Management
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 estimated assets in the range of $1 million to $10
million and liabilities of at least $100 million.
The Debtors tapped Gardere Wynne Sewell, LLP, as counsel, and AMA
Capital Parnters as financial advisor.
HARDEMAN COUNTY: Plan of Adjustment Confirmed
---------------------------------------------
Judge Halin De Wayne Hale of the United States Bankruptcy Court for
the Northern District of Texas, Wichita Falls Division, issued a
findings of fact, conclusions of law, and order confirming the
Amended Plan of Adjustment for Hardeman County Hospital District
d/b/a Hardeman County Memorial Hospital.
Judge De Wayne Hale found that the court-approved Plan Summary was
appropriately transmitted to creditors, and that due and proper
notice was given of the confirmation hearing and of the deadlines
and procedures for voting and filing objections to the plan.
Objections filed by TMJMF Holdings, L.P. and by InterEXPO Ltd., and
any other objections or responses to the plan's confirmation that
(a) have not been withdrawn, waived or settled prior to the entry
of the Order Confirming Plan or (b) are not cured by the relief
granted herein, were overruled on the merits. All withdrawn
objections or responses were each deemed withdrawn with prejudice.
Judge De Wayne Hale concluded that Hardeman County Hospital
District has carried its burden of proof for confirmation of the
plan.
The case is IN RE HARDEMAN COUNTY HOSPITAL DISTRICT d/b/a HARDEMAN
COUNTY MEMORIAL HOSPITAL, Chapter 9, Debtor, CASE NO. 13-70103-HDH9
(Bankr. N.D. Tex.).
A full-text copy of Judge De Wayne Hale's November 2, 2015 findings
of fact and conclusions of law is available at http://is.gd/n0TYNj
from Leagle.com.
Hardeman County Hospital District d/b/a Hardeman County Memorial
Hospital is represented by:
Josiah M. Daniel, III, Esq
Katherine D. Grissel, Esq.
VINSON & ELKINS
Trammell Crow Center
2001 Ross Avenue Suite 3700
Dallas, TX 75201-2975
Tel: (214) 220-7700
Fax: (214) 220-7716
Email: jdaniel@velaw.com
kgrissel@velaw.com
Hardeman County Hospital District, dba Hardeman County Memorial
Hospital, sought protection under Chapter 9 of the Bankruptcy Code
on March 21, 2013 (Bankr. N.D. Tex., Case No. 13-70103). The
petition was signed by Dave Clark, interim administrator.
HCSB FINANCIAL: Incurs $146,000 Net Loss in Third Quarter
---------------------------------------------------------
HCSB Financial Corporation filed with the Securities and Exchange
Commission its quarterly report on Form 10-Q disclosing a net loss
available to common shareholders of $146,000 on $3.61 million of
total interest income for the three months ended Sept. 30, 2015,
compared to a net loss available to common shareholders of $1.05
million on $4 million of total interest income for the same period
in 2014.
For the nine months ended Sept. 30, 2015, the Company reported a
net loss available to common shareholders of $944,000 on $10.46
million of total interest income compared to a net loss available
to common shareholders of $1.32 million on $12.26 million of total
interest income for the same period a year ago.
As of Sept. 30, 2015, the Company had $378.54 million in total
assets, $389.72 million in total liabilities and a shareholders'
deficit of $11.17 million.
Bankruptcy Warning
The Company has been deferring interest payments on its trust
preferred securities since March 2011 and has deferred interest
payments for 19 consecutive quarters. The Company is allowed to
defer payments for up to 20 consecutive quarterly periods, although
interest will also accrue and compound quarterly from the date such
deferred interest would have been payable were it not for the
extension period. All of the deferred interest, including interest
accrued on such deferred interest, is due and payable at the end of
the applicable deferral period, which is in March 2016. At Sept.
30, 2015, total accrued interest equaled $852 thousand.
"If we are not able to raise a sufficient amount of additional
capital, the Company will not be able to pay this interest when it
becomes due and the Bank may be unable to remain in compliance with
the Consent Order. In addition, the Company must first make
interest payments under the subordinated notes, which are senior to
the trust preferred securities. Even if the Company succeeds in
raising capital, it will have to be released from the Written
Agreement or obtain approval from the Federal Reserve Bank of
Richmond to pay interest on the trust preferred securities. If
this interest is not paid by March 2016, the Company will be in
default under the terms of the indenture related to the trust
preferred securities. If the Company fails to pay the deferred and
compounded interest at the end of the deferral period the trustee
or the holders of 25% of the aggregate trust preferred securities
outstanding, by providing written notice to the Company, may
declare the entire principal and unpaid interest amounts of the
trust preferred securities immediately due and payable. The
aggregate principal amount of these trust preferred securities is
$6.0 million. The trust preferred securities are junior to the
subordinated notes, so even if a default is declared the trust
preferred securities cannot be repaid prior to repayment of the
subordinated notes. However, if the trustee or the holders of the
trust preferred securities declares a default under the trust
preferred securities, the Company could be forced into involuntary
bankruptcy," the Company states in the Form 10-Q.
A full-text copy of the Quarterly Report is available at:
http://is.gd/NSeEex
About HCSB Financial
Loris, South Carolina-based HCSB Financial Corporation was
incorporated on June 10, 1999, to become a holding company for
Horry County State Bank. The Bank is a state chartered bank which
commenced operations on Jan. 4, 1988. From its 13 branch
locations, the Bank offers a full range of deposit services,
including checking accounts, savings accounts, certificates of
deposit, money market accounts, and IRAs, as well as a broad range
of non-deposit investment services. During the third quarter of
2011, the Bank closed its Covenant Towers branch located at Myrtle
Beach. All deposits were transferred to the Bank's Myrtle Beach
branch and the Bank does not expect any disruption of service in
that market for its customers.
HCSB Financial reported a net loss available to common shareholders
of $1.4 million on $16.09 million of total interest income for the
year ended Dec. 31, 2014, compared to net income available to
common shareholders of $911,000 on $17.07 million of total interest
income for the year ended Dec. 31, 2013.
Elliott Davis Decosimo, LLC, in Columbia, South Carolina, issued a
"going concern" qualification on the consolidated financial
statements for the year ended Dec. 31, 2014, citing that the
Company has suffered recurring losses that have eroded regulatory
capital ratios and the Company's wholly owned subsidiary, Horry
County State Bank, is under a regulatory Consent Order with the
Federal Deposit Insurance Corporation that requires, among other
provisions, capital ratios to be maintained at certain levels. As
of Dec. 31, 2014, the Company's subsidiary is considered
significantly undercapitalized based on its regulatory capital
levels. These considerations raise substantial doubt about the
Company's ability to continue as a going concern. The Company also
has deferred interest payments on its junior subordinated
debentures for 16 consecutive quarters as of Dec. 31, 2014. Under
the terms of the debentures, the Company may defer payments for up
to 20 consecutive quarters without creating a default. Payment for
the 20th quarter interest deferral period will be due in March
2016. If the Company fails to pay the deferred and compounded
interest at the end of the deferral period, the trustees of the
corresponding trusts, would have the right, after any applicable
grace period, to exercise various remedies, including demanding
immediate payment in full of the entire outstanding principal
amount of the debentures. The balance of the debentures and
accrued interest as of December 31, 2014 were $6.19 million and
$714,000, respectively. These events also raise substantial doubt
about the Company's ability to continue as a going concern as of
Dec. 31, 2014.
HONEY BEE USA: Files for Chapter 11 Bankruptcy Protection
---------------------------------------------------------
Honey Bee USA, Inc., filed for Chapter 11 bankruptcy protection
(Bankr. D. Hawaii Case No. 15-01380) on Nov. 13, 2015, estimating
its assets at between $10 million and $50 million and debts at
between $1 million and $10 million. The petition was signed by
Keith M. Kiuchi, president.
Allison Schaefers at Star Advertiser reports that the Company is
the delinquent developer of the Waikiki Landing, a controversial
public-private partnership at the Ala Wai Small Boat Harbor.
Judge Robert J. Faris presides over the case.
Chuck C. Choi, Esq., and Allison A. Ito, Esq., at Wagner Choi &
Verbrugge serve as the Company's bankruptcy counsel.
Honey Bee USA, Inc., is headquartered in Honolulu, Hawaii.
HOVENSA LLC: Creditors Want to Probe Owner Hess Corp. on Solvency
-----------------------------------------------------------------
Jonathan Randles at Bankruptcy Law360 reported that unsecured
creditors of Hovensa L.L.C. on Nov. 13, 2015, asked a bankruptcy
judge for permission to investigate the St. Croix oil refinery's
owners Hess Corp. and a subsidiary of Venezuela's national oil
company over the Debtor's prepetition solvency and the validity of
$1.8 billion in secured debt.
The official committee of unsecured creditors filed court papers
seeking authority under the Bankruptcy Code to examine, among other
things, Hovensa's financial affairs and officers and directors of
Hess, Petroleos de Venezuela SA and related entities.
About Hovensa
Hovensa, L.L.C., produces and markets refined petroleum products.
The Company offers gasoline, diesel, home heating oil, jet fuel,
kerosene, and residual fuel oil. Hovensa serves customers
throughout North America.
Hovensa L.L.C. filed a Chapter 11 bankruptcy petition in the U.S.
Bankruptcy Court for the District of the Virgin Islands (Bankr. D.
V.I. Case No. 15-10003) on Sept. 15, 2015. The petition was signed
by Sloan Schoyer as authorized signatory. The Debtor has estimated
assets of $100 million to $500 million, and liabilities of more
than $1 billion.
Judge Mary F. Walrath is assigned to the case. The Law Offices of
Richard H. Dollison, P.C., serves as the Debtor's counsel. Prime
Clerk LLC is the Debtor's claims and noticing agent. Alvarez &
Marsal North America, LLC to provide Thomas E. Hill as chief
restructuring officer, effective Sept. 15, 2015 petition date.
The U.S. Trustee appointed five creditors to serve on the committee
of creditors holding unsecured claims.
HOWREY LLP: Bankruptcy Case Converted to Chapter 7 Liquidation
--------------------------------------------------------------
Cara Salvatore Bankruptcy Law360 reported that the bankruptcy of
failed law firm Howrey LLP was granted conversion to a Chapter 7
liquidation on Nov. 13, 2015, in California federal court,
according to court records, a move that was considered likely after
real estate obligations made moving forward in Chapter 11 a
challenge.
U.S. Bankruptcy Judge Dennis Montali granted the conversion in a
hearing, saying it was time to pull the trigger after the trustee
overseeing the shuttered law firm and its creditors told the court
that he couldn't reach a deal.
About Howrey LLP
Three creditors filed an involuntary Chapter 7 petition (Bankr.
N.D. Cal. Case No. 11-31376) on April 11, 2011, against the
remnants of the Washington-based law firm Howrey LLP. The filing
was in San Francisco, where the firm had an office. The firm
previously was known as Howrey & Simon and Howrey Simon Arnold &
White LLP. The firm at one time had more than 700 lawyers in 17
offices. The partners voted to dissolve in March 2011.
The firm specialized in antitrust and intellectual-property
matters. The three creditors filing the involuntary petition
together have $36,600 in claims, according to their petition.
The involuntary chapter 7 petition was converted to a chapter 11
case in June 2011 at the request of the firm. In its schedules
filed in July, the Debtor disclosed assets of $138.7 million and
liabilities of $107.0 million.
Representing Citibank, the firm's largest creditor, is Kelley
Cornish, Esq., a partner at Paul, Weiss, Rifkind, Wharton &
Garrison. Representing Howrey is H. Jason Gold, Esq., a partner
at Wiley Rein.
The Official Committee of Unsecured Creditors is represented in
the case by Bradford F. Englander, Esq., at Whiteford, Taylor And
Preston LLP.
In September 2011, Citibank sought conversion of the Debtor's case
to Chapter 7 or, in the alternative, appointment of a Chapter 11
Trustee. The Court entered an order appointing a Chapter 11
Trustee. In October 2011, Allan B. Diamond was named as Trustee.
He is represented by Andrew Baxter Ryan, Esq., and Stephen Todd
Loden, Esq., at Diamond McCarthy LLP as counsel.
HYDROCARB ENERGY: Charles Dommer to Serve as President Until 2016
-----------------------------------------------------------------
Hydrocarb Energy, on July 20, 2015, entered into a new employment
agreement with Charles Dommer, in order for Mr. Dommer to continue
to serve as the Company's president and chief operating officer
until July 20, 2016.
Pursuant to the agreement, Mr. Dommer's salary is $240,000 per year
and Mr. Dommer is also due a bonus equal to 2% of the net cash
proceeds received by the Company for any working interest sold by
the Company to any party in regards to any U.S. or international
concessions owned and operated by the Company.
If Mr. Dommer's employment is terminated by the Company in
connection with a Change of Control (as defined in the agreement),
either involuntarily by the Company or voluntarily by Mr. Dommer
within 90 days of such Change of Control, the Company is required
to continue paying his salary and reimburse him for insurance
payments for one year after such termination date. Additionally,
in the event the agreement is terminated by the Company for any
reason other than cause or by Mr. Dommer for good reason (each as
defined in the agreement), Mr. Dommer is due six months of salary
as a severance payment.
About Hydrocarb Energy
Hydrocarb Energy, formerly known as Duma Energy Corp, is a
publicly-traded Domestic and International energy exploration and
production company targeting major under-explored oil and gas
projects in emerging, highly prospective regions of the world.
With exploration concessions in Africa, production in Galveston
Bay and Oil Field Services in the United Arab Emirates, the
Company maintain offices in Houston, Texas, Abu Dhabi, UAE and
Windhoek, Namibia.
Hydrocarb Energy reported a net loss of $12.6 million on $3.94
million of revenues for the year ended July 31, 2015, compared to a
net loss of $6.55 million on $5.06 million of revenues for the year
ended July 31, 2014.
As of July 31, 2015, the Company had $31.13 million in total
assets, $32.22 million in total liabilities and a total deficit of
$1.08 million.
MaloneBailey, LLP, in Houston, Texas, issued a "going concern"
qualification on the consolidated financial statements for the year
ended July 31, 2015, citing that the Company has suffered recurring
losses from operations, which raises substantial doubt about its
ability to continue as a going concern.
HYDROCARB ENERGY: Geoserve to Provide Investor Relations Services
-----------------------------------------------------------------
After a lengthy negotiation, Hydrocarb Energy, entered into a
Financial Services Agreement with Geoserve Marketing LLC, a company
controlled by Michael Watts, the father-in-law of Jeremy Driver,
the Company's former chief executive officer and director, and
brother to the Company's current chief executive officer, Kent P.
Watts, pursuant to which Geoserve agreed to provide investor
relations and related services to the Company for a period of three
years in consideration for an aggregate of 850,000 shares of
restricted common stock.
The agreement can be terminated by either party with 60 days'
notice after the expiration of six months, provided that the
850,000 shares are deemed earned upon Geoserve's entry into the
agreement. The Company was previously party to a consulting
agreement with Geoserve in 2011 which had expired as of the
Company's entry into the June 2015 agreement.
About Hydrocarb Energy
Hydrocarb Energy, formerly known as Duma Energy Corp, is a
publicly-traded Domestic and International energy exploration and
production company targeting major under-explored oil and gas
projects in emerging, highly prospective regions of the world.
With exploration concessions in Africa, production in Galveston
Bay and Oil Field Services in the United Arab Emirates, the
Company maintain offices in Houston, Texas, Abu Dhabi, UAE and
Windhoek, Namibia.
Hydrocarb Energy reported a net loss of $12.62 million on $3.94
million of revenues for the year ended July 31, 2015, compared to a
net loss of $6.55 million on $5.06 million of revenues for the year
ended July 31, 2014.
As of July 31, 2015, the Company had $31.13 million in total
assets, $32.22 million in total liabilities and a total deficit of
$1.08 million.
MaloneBailey, LLP, in Houston, Texas, issued a "going concern"
qualification on the consolidated financial statements for the year
ended July 31, 2015, citing that the Company has suffered recurring
losses from operations, which raises substantial doubt about its
ability to continue as a going concern.
HYDROCARB ENERGY: Sells JSJ Investments $350,000 Note
-----------------------------------------------------
Hydrocarb Energy Corporation, on Nov. 9, 2015, sold JSJ Investments
Inc. an 8% Short Term Cash Redeemable Note in the principal amount
of $350,000.
The JSJ Note accrues interest at the rate of 8% per annum and is
payable on demand by JSJ at any time after Nov. 9, 2016. The
Company may prepay the JSJ note, together with accrued and unpaid
interest, at any time prior to the 180th day after the issuance
date. Along with any prepayment, the Company is required to pay
the following pre-payment penalties in addition to the principal
amount then outstanding under the JSJ Note: until the 60th day
after the issuance date, a premium of 25% of the principal amount
of the note, in addition to outstanding interest; from the 61st day
to the 120th day after the issuance date, premium of 35% of the
principal amount of the note, in addition to outstanding interest;
from the 121st day to the JSJ Pre-Payment Date, a premium of 45% of
the principal amount of the note, in addition to outstanding
interest; and after the JSJ Pre-Payment Date, a premium of 50% of
the then outstanding principal amount of the note, plus accrued
interest (provided that after the JSJ Pre-Payment Date the JSJ Note
can only be prepaid with the written consent of JSJ). Upon the
occurrence of any event of default under the JSJ Note the amounts
due thereunder accrue interest at the rate of 18% per annum. JSJ
agreed not to sell short any shares of the Company's common stock
so long as the JSJ Note is outstanding.
If the Company fails to prepay the JSJ Note prior to the JSJ
Pre-Payment Date, JSJ has the right to convert the principal and
accrued interest owed under such note into the Company's common
stock at a 40% discount to the lowest trading price of the
Company's common stock during the 15 trading days prior to
conversion. Notwithstanding the foregoing, there is an initial
soft floor of $0.30 per share on conversions, which means that in
the event the Company's common stock closes below $0.30 per share,
then the holder may not convert its note for the 10 trading days
immediately preceding the first time the price closes below $0.30
per share. However, in the event the price of the Company's common
stock closes above $0.30 per share in that 10 day period, the
holder may convert, without waiting the balance of the 10 days.
Additionally, following the 10 day period, the holder has a three
day grace period to convert, even if the common stock closes below
the next lower soft floor level. This process is repeated with
soft floors of $0.15 per share and $0.075 per share. At no time
may the JSJ Note be converted into shares of the Company's common
stock if such conversion would result in JSJ and its affiliates
owning an aggregate of in excess of 4.9% (which may be increased to
9.99% with written notice from JSJ, provided such increase will not
take effect for at least 61 days) of the then outstanding shares of
the Company's common stock.
About Hydrocarb Energy
Hydrocarb Energy, formerly known as Duma Energy Corp, is a
publicly-traded Domestic and International energy exploration and
production company targeting major under-explored oil and gas
projects in emerging, highly prospective regions of the world.
With exploration concessions in Africa, production in Galveston
Bay and Oil Field Services in the United Arab Emirates, the
Company maintain offices in Houston, Texas, Abu Dhabi, UAE and
Windhoek, Namibia.
Hydrocarb Energy reported a net loss of $12.62 million on $3.94
million of revenues for the year ended July 31, 2015, compared to a
net loss of $6.55 million on $5.06 million of revenues for the year
ended July 31, 2014.
As of July 31, 2015, the Company had $31.13 million in total
assets, $32.22 million in total liabilities and a total deficit of
$1.08 million.
MaloneBailey, LLP, in Houston, Texas, issued a "going concern"
qualification on the consolidated financial statements for the year
ended July 31, 2015, citing that the Company has suffered recurring
losses from operations, which raises substantial doubt about its
ability to continue as a going concern.
HYDROCARB ENERGY: Sold $832,000 Notes to Adar and Union
-------------------------------------------------------
Hydrocarb Energy Corporation, on Nov. 9, 2015, sold each of Adar
Bays, LLC and Union Capital, LLC, identical 8% Short Term Cash
Redeemable Notes in the amount of $208,000 ($416,000 in aggregate).
The Initial Notes were issued pursuant to the terms of Securities
Purchase Agreements dated as of the same date.
In addition to the Initial Notes, the Company sold Adar and Union
each another secured note in the amount of $208,000 each ($416,000
in aggregate). The purchase price of the Initial Notes was paid in
cash at closing (Nov. 10, 2015), and the purchase price of the
Second Notes was each paid by way of the issuance of an offsetting
$208,000 secured note issued to the Company by each of Adar and
Union.
Pursuant to the Securities Purchase Agreements, Adar and Union each
agreed not to sell short any shares of the Company's common stock
so long as each purchaser's Initial Note or Second Note is
outstanding. In connection with the sale of the Initial Notes, the
Company paid $16,000 in legal fees ($8,000 to each investor) and
paid $30,000 in due diligence fees ($15,000 per Initial Note),
provided that substantially similar fees are payable in connection
with the Second Notes in the event such Second Notes are paid by
Adar and Union.
Additional information is available for free at:
http://is.gd/X4vz6G
About Hydrocarb Energy
Hydrocarb Energy, formerly known as Duma Energy Corp, is a
publicly-traded Domestic and International energy exploration and
production company targeting major under-explored oil and gas
projects in emerging, highly prospective regions of the world.
With exploration concessions in Africa, production in Galveston
Bay and Oil Field Services in the United Arab Emirates, the
Company maintain offices in Houston, Texas, Abu Dhabi, UAE and
Windhoek, Namibia.
Hydrocarb Energy reported a net loss of $12.62 million on $3.94
million of revenues for the year ended July 31, 2015, compared to a
net loss of $6.55 million on $5.06 million of revenues for the year
ended July 31, 2014.
As of July 31, 2015, the Company had $31.13 million in total
assets, $32.22 million in total liabilities and a total deficit of
$1.08 million.
MaloneBailey, LLP, in Houston, Texas, issued a "going concern"
qualification on the consolidated financial statements for the year
ended July 31, 2015, citing that the Company has suffered recurring
losses from operations, which raises substantial doubt about its
ability to continue as a going concern.
JOE'S JEANS: Amends Third Quarter Form 10-Q to Correct Error
------------------------------------------------------------
Joe's Jeans Inc. filed an amendment to its quarterly report for the
period ended Aug. 31, 2015, to make certain changes to the
disclosures in the financial statements. The Company determined
that an error was made in the classification of certain liabilities
in connection with certain information related to its discontinued
operations on its Condensed Consolidated Balance Sheets and its
Condensed Consolidated Statements of Cash Flows.
The restatement, which is treated as a correction of an error,
impacts the Company's Condensed Consolidated Balance Sheets as of
Aug. 31, 2015, and Nov. 30, 2014, and its Condensed Consolidated
Statements of Cash Flows for the nine months ended Aug. 31, 2015,
and 2014. There was no effect on the Company's Condensed
Consolidated Statements of Net Loss and Comprehensive Loss for the
periods presented in the Form 10-Q.
The Company's restated balance sheet as of Aug. 31, 2015, showed
$171.52 million in total assets, $148.97 million in total
liabilities and $22.55 million in total stockholders' equity.
A full-text copy of the Form 10-Q/A is available for free at:
http://is.gd/T0Dg02
About Joe's Jeans
Joe's Jeans Inc. -- http://www.joesjeans.com/-- designs, produces
and sells apparel and apparel-related products to the retail and
premium markets under the Joe's(R) brand and related trademarks.
In its audit report on the consolidated financial statements for
the year ended Nov. 30, 2014, Moss Adams LLP expressed substantial
doubt about the Company's ability to continue as a going concern,
citing that the Company has a net working capital deficiency due to
debt covenant violations and has suffered recurring losses from
operations.
The Company reported a net loss of $27.7 million on $189 million of
net sales for the fiscal year ended Nov. 30, 2014, compared with a
net loss of $7.31 million on $140 million of net sales in 2013.
The Troubled Company Reporter, on June 9, 2015, reported that Joe's
Jeans received a letter on May 29, 2015, from The Nasdaq Stock
Market indicating that the Company had received an additional 180
days, or until Nov. 23, 2015, to regain compliance with Nasdaq
Listing Rule 5550(a)(2) by maintaining a closing bid price per
share of its common stock at $1.00 per share or more for a minimum
of 10 consecutive trading days.
KITTUSAMY LLP: Estate Needs Chapter 11 Trustee, Creditors Assert
----------------------------------------------------------------
Moonshell, LLC, and Venus Group, LLC, maintain that the U.S.
Bankruptcy Court for the District of Nevada needs to appoint a
Chapter 11 trustee for Kittusamy.
The Debtor opposed the request, asserting that Moonshell and Venus'
motives in bringing the motion were as transparent as their
contrived concerns for the bankruptcy estate. Moonshell and Venus'
principals financed the Debtor's failed expansion to a new location
in Henderson through the construction of the Seven Hills Business
Plaza, the buildout of the Debtor's former space within Plaza, and
the purchase of medical imaging equipment that they leased to the
Debtor through petitioning creditor Seven Hills Equipment, LLC.
In their efforts to reopen the Debtor's Seven Hills location under
their own newly-formed company, American Radiology, LLC, Moonshell
and Venus' principals have repeatedly attempted to solicit the
Debtor's employees and physicians to join American Radiology, LLC,
which lacks the infrastructure and staff to operate a successful
radiology center on its own.
Prem K. Kittusamy, M.D., sole director, officer, and shareholder of
Prem Kumar Kittusamy, M.D., P.C., which is a managing partner of
Kittusamy submitted a declaration in support of Debtor Kittusamy,
LLP's opposition to the motion to appoint a trustee. Dr. Kittusamy
said that Moonshell and Venus well as the two other petitioning
creditors, Xspectra, Inc. and Seven Hills Equipment, LLC, are all
owned and controlled by Grover or Lance Bradford. In this
relation, Dr. Kittusamy believe that Moonshell and Venus are now
seeking the appointment of a trustee in order to drive Kittusamy
out of business so that Grover and Bradford can take Kittusamy's
infrastructure and staff to run their own radiology center under
American Radiology, LLC.
Meadows Bank also joined the Debtor's opposition to the motion to
appoint a trustee.
The Petitioning Creditors, in response to the objection, argued
that the opposition was loaded with misstatements and admissions,
clear and convincing evidence of the need for a trustee was already
established. The Petitioning Creditors also noted that the Debtor
was failing to separately account for its personal injury medical
lien sales, as ordered by the Court when the bank accounts motion
was approved.
Xpectra, Inc., and Seven Hills, LLC, in a separate filing, said
that they join in the motion to appoint a trustee.
The Petitioning Creditors are represented by:
Samuel A. Schwartz, Esq.
Bryan A. Lindsey, Esq.
SCHWARTZ FLANSBURG PLLC
6623 Las Vegas Blvd. South, Suite 300
Las Vegas, NV 89119
Tel: (702) 385-5544
Fax: (702) 385-2741
Xpectra, Inc., and Seven Hills, LLC are represented by:
Zachariah Larson, Esq.
Matthew C. Zirsow, Esq.
LARSON & ZIRSOW, LLC
810 S. Casino Center Blvd. #101
Las Vegas, NV 89101
Tel: (702) 382-1170
Fax: (702) 382-1169
E-mails: zlarson@lzlawnv.com
mzirsow@lzlawnv.com
The Debtor is represented by:
Bart K. Larsen, Esq.
Eric D.Walther, Esq.
KOLESAR &LEATHAM
400 S. Rampart Blvd., Ste. 400
Las Vegas, NV 89145
Tel: (702) 362-7800
Fax: (702) 362-9472
E-Mail: blarsen@klnevada.com
ewalther@klnevada.com
About Kittusamy, LLP
Kittusamy, LLP, doing business as Las Vegas Medical Centers, was
subject to an involuntary Chapter 11 bankruptcy petition (Bankr. D.
Nev. Case No. 15-13868) filed July 2, 2015, 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. 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 denied the allegations claiming that it is generally not
paying its debts as they become due, but, nonetheless, consented to
the entry of an order for relief under Chapter 11 upon which
Kittusamy became a Chapter 11 debtor in possession. The Debtor is
headed by Prem K. Kittusamy, M.D., the managing partner and
president.
Kittusamy is represented by Bart K. Larsen, Esq., and Jason M.
Bacigalupi, Esq., at Kolesar & Leatham, in Las Vegas.
The Debtor disclosed $11.8 million in assets and $16.0 million in
debt in its schedules.
LEADFX INC: Sprott Extends Forbearance Period Until Dec. 15
-----------------------------------------------------------
LeadFX Inc. on Nov. 20 disclosed that Sprott Resources Lending
Partnership has agreed to extend the period of forbearance under
its secured credit facility with the Company to December 15, 2015
while management works through a close out solution. All other
terms and conditions of the forbearance agreement remain the same.
About LeadFX
LeadFX is a Canadian-based mining company focused on the
development of lead-silver projects located in stable
jurisdictions. Its current portfolio includes a restart-ready lead
operation in Western Australia and a development project in Utah,
USA. The Company is developing opportunities at its new properties
in North America to underpin future cash flow and growth. LeadFX
trades under the symbol "LFX" on the Toronto Stock Exchange.
LEVEL 3: Completes Offering of $900 Million Senior Notes due 2024
-----------------------------------------------------------------
Level 3 Communications, Inc., announced that Level 3 Financing,
Inc., its wholly owned subsidiary, has completed its offering of
$900 million aggregate principal amount of its 5.375% Senior Notes
due 2024 in a private offering to "qualified institutional buyers",
as defined in Rule 144A under the Securities Act of 1933, as
amended, and non-U.S. persons outside the United States under
Regulation S under the Securities Act of 1933, as amended.
The Notes were priced to investors at 100 percent of their
principal amount and will mature on Jan. 15, 2024. Level 3
Financing's obligations under the Notes will be fully and
unconditionally guaranteed on an unsecured basis by Level 3
Communications, Inc. The net proceeds from the offering, together
with cash on hand, will be used to redeem all of Level 3
Financing's outstanding 8.625% Senior Notes due 2020, including
accrued interest, applicable premiums and expenses.
On Nov. 13, 2015, an irrevocable notice of redemption was
distributed to holders of Level 3 Financing's 8.625% Senior Notes.
The redemption of the outstanding aggregate principal amount of all
of the 8.625% Senior Notes is scheduled to occur on Dec. 13, 2015.
The Notes are not registered under the Securities Act of 1933 or
any state securities laws, and unless so registered, may not be
offered or sold except pursuant to an applicable exemption from the
registration requirements of the Securities Act of 1933 and
applicable state securities laws.
Additional information is available for free at:
http://is.gd/JYCb9Q
About Level 3 Communications
Headquartered in Broomfield, Colorado, Level 3 Communications,
Inc., is a publicly traded international communications company
with one of the world's largest communications and Internet
backbones.
For the year ended Dec. 31, 2014, the Company reported net income
of $314 million on $6.77 billion of revenue compared to a net loss
of $109 million on $6.31 billion of revenue during the prior year.
* * *
In September 2015, Fitch Ratings has upgraded the Issuer Default
Rating (IDR) assigned to Level 3 Communications, Inc. (LVLT) and
its wholly owned subsidiary level 3 Financing, Inc. (Level 3
Financing) to 'BB-' from 'B+'. The rating action recognizes LVLT's
strengthening financial and operating profile as the company
completes the integration of tw telecom, Inc.
In June 2013, Standard & Poor's Ratings Services raised its
corporate credit rating on Level 3 to 'B' from 'B-'. "The upgrade
reflects improved debt leverage, initially from the acquisition of
the lower-leveraged Global Crossing in October 2011, and
subsequently from realization of the bulk of what the company
expects to eventually be $300 million of annual operating
synergies," said Standard & Poor's credit analyst Richard
Siderman.
As reported by the TCR on Aug. 17, 2015, Moody's Investors Service
upgraded Level 3 Communications, Inc.'s corporate family rating
(CFR) to Ba3 from B2. Level 3's Ba3 CFR is based on the company's
solidifying business and financial profiles as it integrates the
former tw telecom, inc., with Moody's anticipating continued margin
improvement as synergies are realized, and as higher margin
Internet Protocol-based services replace legacy services.
LEVEL 3: Implements Majority Voting Standard for Directors
----------------------------------------------------------
The Board of Directors of Level 3 Communications, Inc. amended and
restated Level 3's By-laws, effective Nov. 12, 2015, to implement a
majority voting standard for uncontested elections of directors,
proxy access rights for eligible stockholders and a forum selection
provision and to amend the advance notice provisions, among other
amendments.
Majority Voting
The By-laws were amended to provide that in uncontested elections
of directors, a nominee for director will be elected to the Board
if the votes cast for that nominee constitute at least a majority
of the votes cast with respect to that nominee. In an uncontested
election where an incumbent director does not receive a majority of
the votes cast, that incumbent director will be required to tender
a resignation to the Board for the Board's consideration.
Proxy Access
Under the amended By-laws, a stockholder, or group of up to 20
stockholders, who have collectively owned at least 3% of Level 3's
outstanding common stock continuously for at least three years, can
nominate directors not to exceed 20% of the number of directors
then serving for inclusion in Level 3's proxy materials applicable
to the election of directors at an annual meeting of stockholders.
Forum Selection
The By-laws were amended to implement a forum selection provision
for the adjudication of disputes.
The forum selection provision provides that the sole and exclusive
forum for (i) any derivative action or proceeding brought on behalf
of Level 3, (ii) any action asserting a claim of breach of a
fiduciary duty owed by any director, officer or employee of Level 3
to Level 3 or its stockholders, (iii) any action asserting a claim
against Level 3 or any director or officer or other employee of
Level 3 arising pursuant to any provision of the Delaware General
Corporation Law or Level 3's Restated Certificate of Incorporation
or By-laws (as either may be amended from time to time), or (iv)
any action asserting a claim against Level 3 or any director or
officer or other employee of Level 3 governed by the internal
affairs doctrine, shall be the Court of Chancery of the State of
Delaware (or if it does not have jurisdiction, the Superior Court
of the State of Delaware, or if the Superior Court of State of
Delaware does not have jurisdiction, the United States District
Court for the District of Delaware).
While the changes to Article VII, Section 7.8 relating to forum
selection are effective immediately, Level 3 will submit the forum
selection provision to stockholders for their consideration at the
2016 Annual Meeting of Stockholders, and if the forum selection
provision is not ratified at that meeting, the provision will
become void.
Advance Notice
The advance notice provisions of the By-laws were amended to
provide that a stockholder must notify Level 3 in writing of (i) a
proposal to be presented at the annual meeting of stockholders or
(ii) a nomination of an individual for election as a director at
the annual meeting of stockholders (other than through the proxy
access process described above) not less than 90 days, but not more
than 120 days, prior to the anniversary date of the previous annual
meeting. Previously, advance written notice was required not less
than 60 days, but not more than 90 days, prior to the anniversary
date of the previous annual meeting.
Therefore, under the Amended and Restated By-laws, if a stockholder
wishes to present a proposal directly or nominate an individual for
election as a director at the 2016 Annual Meeting of Stockholders
(other than through proxy access), the stockholder must give Level
3 written notice complying with the terms of the Amended and
Restated By-Laws on or before Feb. 21, 2016, but no earlier than
Jan. 22, 2016.
About Level 3 Communications
Headquartered in Broomfield, Colorado, Level 3 Communications,
Inc., is a publicly traded international communications company
with one of the world's largest communications and Internet
backbones.
For the year ended Dec. 31, 2014, the Company reported net income
of $314 million on $6.77 billion of revenue compared to a net loss
of $109 million on $6.31 billion of revenue during the prior year.
* * *
In September 2015, Fitch Ratings has upgraded the Issuer Default
Rating (IDR) assigned to Level 3 Communications, Inc. (LVLT) and
its wholly owned subsidiary level 3 Financing, Inc. (Level 3
Financing) to 'BB-' from 'B+'. The rating action recognizes LVLT's
strengthening financial and operating profile as the company
completes the integration of tw telecom, Inc.
In June 2013, Standard & Poor's Ratings Services raised its
corporate credit rating on Level 3 to 'B' from 'B-'. "The upgrade
reflects improved debt leverage, initially from the acquisition of
the lower-leveraged Global Crossing in October 2011, and
subsequently from realization of the bulk of what the company
expects to eventually be $300 million of annual operating
synergies," said Standard & Poor's credit analyst Richard
Siderman.
As reported by the TCR on Aug. 17, 2015, Moody's Investors Service
upgraded Level 3 Communications, Inc.'s corporate family rating
(CFR) to Ba3 from B2. Level 3's Ba3 CFR is based on the company's
solidifying business and financial profiles as it integrates the
former tw telecom, inc., with Moody's anticipating continued margin
improvement as synergies are realized, and as higher margin
Internet Protocol-based services replace legacy services.
LIGHT TOWER: Moody's Lowers CFR to B3; Outlook Negative
-------------------------------------------------------
Moody's Investors Service downgraded Light Tower Rental's Corporate
Family Rating to B3 from B2 and the Probability of Default Rating
to B3-PD from B2-PD. At the same time, Moody's downgraded the $330
million senior secured notes to B3 from B2. Moody's withdrew the
SGL rating. The rating outlook is negative.
"The downgrade reflects our expectation that weakening operating
profit in 2016 will result in debt to EBITDA above 7 times and
breakeven free cash flow because of further weakness in demand for
products exposed to drilling and completion," said Moody's Analyst,
Morris Borenstein.
Issuer: Light Tower Rentals, Inc.
Ratings downgraded:
Corporate Family Rating to B3 from B2;
Probability of Default Rating to B3-PD from B2-PD;
$330 million Senior Secured Notes to B3 (LGD4) from B2 (LGD4);
Rating withdrawn:
SGL-3 Speculative Grade Liquidity Rating;
The rating outlook is negative.
RATINGS RATIONALE
The rationale for the downgrade includes expectations for sustained
lower business activity levels, credit metric deterioration, and
weaker cash flows. The B3 CFR reflects LTR's small size and scale
within the broader oilfield services industry and exposure to the
highly cyclical and competitive onshore oilfield services market
which is in the midst of a severe downturn. Declines are primarily
in diesel generators, light towers and liquid storage tanks, with
less pressure on natural gas generators that are used more in
production activity. As a result of the decline in demand for most
oilfield service equipment in LTR's portfolio, Moody's believe
debt/EBITDA will increase to over 7 times in 2016 and interest
coverage should remain around or above 1.5 times. LTR's business
is also characterized by low barriers to entry due to the
un-contracted nature of rental revenues combined with a relatively
low-technology product offering.
The rating is supported by the company's relatively high EBITDA
margins (albeit materially lower than in 2014), good presence in
the oilfield-focused specialty equipment rental market, and deep
customer relationships developed by management. The rating also
acknowledges that while the company's products represent a minimal
proportion of the total well cost, they are a critical component of
well-site operations. Further supporting the rating is the
company's geographic diversity in the most active
hydrocarbon-producing regions in the US, and product diversity.
Because much of the company's capex spending is related to
replenishing its fleet of equipment, the company can scale down
those expenditures as EBITDA and demand fall to preserve its
liquidity.
The ratings could be downgraded if operating performance
deteriorates such that EBITDA to interest coverage falls below 1.5
times or if the company's liquidity profile weakens. The ratings
outlook could be changed to stable if LTR's earnings appear to have
bottomed at levels that provide adequate interest coverage with
visibility toward sequential earnings improvement. A rating
upgrade is unlikely through 2016 given Moody's expectation for a
very slow recovery in onshore drilling activity. The ratings could
be upgraded If Debt/EBITDA is sustained below 5x with free cash
flow to debt above 5%.
Moody's expects LTR's liquidity will be adequate over the next
twelve to fifteen months. While operating cash flows will be weak
driven mostly by declines in EBITDA, Moody's believes the company
has the ability to curtail capex to minimal levels to conserve
cash. Moody's also expects LTR's $30 million ABL revolver to
mostly remain undrawn. The revolver will be smaller based on
qualified receivables. There is a 1.1 times springing fixed charge
coverage covenant in its credit agreement when availability falls
below $4 million. Moody's does not expect the company to draw to
those levels. Given that both the ABL and senior notes are
secured, the company has limited ability to raise cash for
liquidity through asset sales.
The negative rating outlook reflects the weakness in demand for
LTR's products and the potential for further price deterioration in
its offerings due to competition and price concessions to its
customers.
The principal methodology used in these ratings was the Global
Oilfield Services Industry Rating Methodology published in December
2014.
Light Tower Rentals, Inc. is a diversified well-site specialty
surface equipment rental and services provider which generates
revenue through the rental of products (power generators, light
towers, fluid handling, trailers and heaters) for use at oil and
natural gas well-sites. LTR is 57% owned by management and private
equity sponsor Clairvest Group Inc. with the remainder by a group
of other investors. Revenue for the twelve months ended Sept. 30,
2015, was approximately $221 million.
M/I HOMES: Moody's Raises CFR to B1 & Changes Outlook to Stable
---------------------------------------------------------------
Moody's Investors Service upgraded the Corporate Family Rating of
M/I Homes Inc.'s to B1 from B2 and assigned a B1 rating to the
company's proposed $300 million senior unsecured notes due 2020.
Concurrently, Moody's raised the Probability of Default Rating of
M/I Homes to B1-PD and upgraded its senior subordinate convertible
notes to B3 and affirmed the preferred stock at Caa1. Furthermore,
Moody's affirmed M/I Homes' Speculative-Grade Liquidity (SGL)
Rating at SGL-2. The rating outlook was changed to stable from
positive.
Proceeds from the proposed $300 million senior unsecured note
offering will be used to refinance the company's senior notes due
in 2018 with the remainder going toward reducing outstanding
revolver borrowings.
The upgrade of M/I Homes' Corporate Family Rating to B1 reflects
Moody's expectation for continued improvement in credit metrics
with homebuilding debt to capitalization at or near 45% at the end
of 2016 from pro forma 49% at Sept. 30, 2015. Furthermore, the
upgrade recognizes the company conservative and judicious balance
sheet management style by utilizing low levels of debt to grow the
company's homebuilding revenue base to close to $1.3 billion (as of
September 30, 2015).
These rating actions were taken for M/I Homes Inc.:
Corporate Family Rating, upgraded to B1 from B2;
Probability of Default Rating, upgraded to B1-PD from B2-PD;
Proposed $300 million senior unsecured notes due 2020, assigned
B1 (LGD3);
Senior subordinated convertible notes, upgraded to B3 (LGD6)
from Caa1 (LGD6);
Preferred stock, affirmed at Caa1 (LGD6);
Speculative-Grade Liquidity Rating, affirmed at SGL-2;
Outlook changed to stable from positive.
The B1 rating on the existing $230 million senior unsecured notes
will be withdrawn at the close of the transaction.
RATINGS RATIONALE
The B1 Corporate Family Rating reflects M/I Homes' continued upward
momentum in financial performance as it looks to take advantage of
growth in the homebuilding industry. The proposed $300 million
unsecured debt offering will not meaningfully increase debt
leverage, which will stand at 49% pro forma. Moody's expects this
metric to remain below 50% for the next 12 to 18 months and remain
consistent with other B1 rated homebuilders. Homebuilding interest
coverage is anticipated to be in excess to of 3.5x in 2016. The B1
Corporate Family Rating also benefits from the company's
advantageous position in key markets around the US and low risk
land supply. M/I Home has been able to keep a low risk land supply
by increasing its share of optioned lots, from 30.8% of controlled
lots in 2011 to 52.1% of controlled lots in the second quarter of
2015.
At the same time, the B1 Corporate Family Rating considers M/I
Homes relatively small size and its continued negative free cash
flow for the next 12 to 18 months as the company continues to
invest in land. M/I Homes' ratings are also constrained by its
limited geographic reach. The company derives its revenue from ten
different states and has operations in the South, Midwest, and
Mid-Atlantic. However, M/I Homes benefits from good positioning in
key markets within those regions. The company has a top ten market
share in ten of its 14 divisions and sells in the key states of
Florida and Texas.
The stable outlook reflects the expectation that M/I Homes
performance will continue to benefit from a positive homebuilding
environment.
The ratings could be upgraded if M/I Homes increases its revenues
and geographic diversification while maintaining conservative
financial policies.
The rating could be downgraded if the company's liquidity position
deteriorates or if homebuilding debt leverage increases past 55%.
The principal methodology used in these ratings was Homebuilding
and Property Development Industry published in April 2015.
Headquartered in Columbus, Ohio and begun in 1976, M/I Homes, Inc.
sells homes under the trade names M/I Homes and Showcase
Collection. M/I Homes has homebuilding operations located in
Columbus and Cincinnati, Ohio; Indianapolis, Indiana; Chicago,
Illinois; Tampa and Orlando, Florida; Charlotte and Raleigh, North
Carolina; the Virginia and Maryland suburbs of Washington, D.C; and
Austin, Dallas/Fort Worth, Houston and San Antonio, Texas.
Homebuilding revenues for the trailing twelve month period ending
Sept. 30, 2015 were $1.283 billion.
MORRISON INFORMATICS: Union Opposes Bid to Add Trustee as Plaintiff
-------------------------------------------------------------------
Dan Packel at Bankruptcy Law360 reported that a Pennsylvania credit
union on Nov. 17, 2015, urged the state's Supreme Court to prevent
a bankrupt health care consulting firm from adding the bankruptcy
trustee as a plaintiff to its complaint in an embezzlement lawsuit,
saying a lower court disregarded longstanding law in the state.
Ellen H. Kueny of Kantrowitz & Phillipi LLC, representing Members
1st Federal Credit Union, told the justices that the trial court
had acted correctly when it barred the shareholders of Morrison
Informatics Inc. from adding the trustee.
MOUNTAIN PROVINCE: Files Q3 Management's Discussion and Analysis
----------------------------------------------------------------
Mountain Province Diamonds Inc. announced it has filed on SEDAR
financial statements and management's discussion and analysis for
the three months and nine months ended Sept. 30, 2015. The MD&A
includes disclosure of the Company's policies regarding the
representation of women on the board of directors and in executive
officer positions. A copy of the filing is available for free at:
http://is.gd/wsvsk0
About Mountain Province Diamonds
Headquartered in Toronto, Canada, Mountain Province Diamonds Inc.
(TSX: MPV, NYSE AMEX: MDM) -- http://www.mountainprovince.com/--
is a Canadian resource company in the process of permitting and
developing a diamond deposit known as the "Gahcho Kue Project"
located in the Northwest Territories of Canada. The Company's
primary asset is its 49 percent interest in the Gahcho Kue
Project.
Mountain Province incurred a net loss of C$4.39 million in 2014, a
net loss of C$26.6 million in 2013 and a net loss of C$3.33 million
in 2012.
As of June 30, 2015, the Company had C$510.3 million in total
assets, C$165.7 million in total liabilities and C$344.6 million in
total shareholders' equity.
KPMG LLP, in Toronto, Canada, issued a "going concern"
qualification on the consolidated financial statements for the year
ended Dec. 31, 2014, citing that the Company's ability to continue
operations is dependent upon its ability to obtain sufficient
financing to fund its operations and development costs.
NEWARK WATERSHED: Claims Corruption Under Ex-Chairman Cory Booker
-----------------------------------------------------------------
Jeannie O'Sullivan at Bankruptcy Law360 reported that the
bankruptcy trustees for the Newark Watershed Conservation and
Development Corporation have filed a lawsuit accusing its overseers
-- including U.S. Sen. Cory Booker, the group's former chairman --
of engaging in corrupt activities that included misappropriated
funds, no-bid contracts and kickback schemes.
In complaint filed in U.S. Bankruptcy Court, the trustees say the
alleged activities were carried out under Booker's reign from April
2007 until the nonprofit's dissolution in March 2013.
About Newark Watershed
Newark, New Jersey-based Newark Watershed Conservation and
Development Corporation filed for Chapter 11 protection (Bankr.
D.N.J. Case No. 15-10019) on Jan. 2, 2015. The petition was signed
by Joseph M. Hartnett, interim executive director.
The Hon. Donald H. Steckroth presides over the case. Donald W.
Clarke, Esq., and Daniel Stolz, Esq., at Wasserman, Jurista &
Stolz, P.C., represents the Debtor in its Chapter 11 case.
The Debtor disclosed total assets of $202,489 and total liabilities
of $2.07 million.
NNN DORAL: Receiver Excused to Turnover Bankruptcy Estate Property
------------------------------------------------------------------
The Hon. Laurel M. Isicoff of the U.S. Bankruptcy Court for the
Southern District of Florida excused Howard M. Holzapfel from
turning over the property of NNN Doral Court 3, LLC's estates.
The Debtor asked that the custodian will continue to perform his
obligations under the order appointing receiver, except for the
sale of the property.
The custodian will receive a monthly fee of $5,000 nunc pro tunc to
Aug. 6, 2015, plus the budgeted amount for reasonable and necessary
expenses, which will be paid monthly without further order of the
Court.
NNN Doral Court 3, LLC and its debtor-affiliates filed for Chapter
11 protection (Bankr. S.D. Fla. Case No.) on Aug. 6, 2015. The
petition was signed by Randy George, manager and authorized
bankruptcy representative. Geoffrey S. Aaronson, Esq., Jeremy D.
Evans, Esq., Tamara D. McKeown, Esq., Lawrence M. Schantz, Esq., at
Aaronzon Schantz Beiley P.A., represents the Debtors.
The Debtors estimated assets and debts at $10 million to $50
million.
NRAD MEDICAL: Court Approves Amendment in Bankruptcy Case Caption
-----------------------------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of New York
authorized NRAD Medical Associates, P.C., to amend the caption in
its Chapter 11 case to:
NRAD Medical Associates, P.C., formerly known as Nassau
Radiologic Group, P.C., formerly doing business as Long Island
Radiation Therapy, f/d/b/a Long Island Pet Imaging, f/d/b/a
Lakeville Nuclear Associates, f/d/b/a Manhasset Diagnostic Imaging,
P.C., f/d/b/a Hillcrest Radiology Associates, f/d/b/a Imaging For
Health, f/d/b/a Lakeville Imaging, f/d/b/a Lakeville Nassau CT.
About NRAD Medical Associates
NRAD Medical Associates, P.C., operated a regional radiology
imaging medical practice and a regional radiation therapy practice
with 16 locations throughout Long Island and Queens, New York,
before selling its assets in June 2015.
NRAD Medical sought Chapter 11 bankruptcy protection (Bankr.
E.D.N.Y. Case No. 15-72898) in Central Islip, New York, on July 7,
2015. The case is assigned to Judge Louis A. Scarcella.
The Debtor disclosed total assets of $28,663,053 and total
liabilities of $24,751,950 as of the Chapter 11 filing.
The Debtor is represented by Anthony C Acampora, Esq., at
Silverman Acampora LLP, in Jericho, New York.
Farrell Fritz PC represents the Official Committee of Unsecured
Creditors.
NRAD MEDICAL: Farrell Fritz Okayed as Counsel for Creditors' Panel
------------------------------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of New York
authorized the Official Committee of Unsecured Creditors in the
Chapter 11 case of NRAD Medical Associates, P.C., to retain Farrell
Fritz PC as its counsel effective as of Aug. 26, 2015.
Farrell Fritz is expected to:
1. prepare on behalf of the Committee of all necessary
applications, motions, orders, reports and other legal papers;
2. negotiate, formulate, draft and confirm any plan or plans of
reorganization and matters related thereto; and
3. assist the Committee on investigation, if any, on the assets,
liabilities, financial condition and operating issues concerning
the Debtor that may be relevant to the case.
The principal attorneys designated to represent the Committee and
their hourly rates are:
Ted A. Berkowitz, partner $600
Patrick T. Collins, partner $575
Veronique A. Urban, associate $415
To the best of the Committee's knowledge, Farrell Fritz is a
"disinterested person" as that term is defined in Section 101(14)
of the Bankruptcy Code.
About NRAD Medical Associates
NRAD Medical Associates, P.C., operated a regional radiology
imaging medical practice and a regional radiation therapy practice
with 16 locations throughout Long Island and Queens, New York,
before selling its assets in June 2015.
NRAD Medical sought Chapter 11 bankruptcy protection (Bankr.
E.D.N.Y. Case No. 15-72898) in Central Islip, New York, on July 7,
2015. The case is assigned to Judge Louis A. Scarcella.
The Debtor disclosed total assets of $28,663,053 and total
liabilities of $24,751,950 as of the Chapter 11 filing.
The Debtor is represented by Anthony C Acampora, Esq., at
Silverman Acampora LLP, in Jericho, New York. Farrell Fritz PC
represents the Official Committee of Unsecured Creditors.
O.W. BUNKER: Court Approves Disclosure Statement
------------------------------------------------
U.S. Bankruptcy Judge Julie A. Manning has scheduled a hearing on
Dec. 10, 2015, to consider confirmation of O.W. Bunker Holding
North America Inc., et al.'s Liquidation Plans.
Judge Manning on Oct. 29 approved the First Amended Disclosure
Statement and set:
-- An Oct. 29 voting record date;
-- A Nov. 16 deadline for filing motions under Bankruptcy
Rule 3018(a) to temporarily allow claims for voting
purposes;
-- A Dec. 3, 4:00 p.m. Eastern Time, voting deadline;
-- A Dec. 3, 4:00 p.m. deadline for objections to confirmation
of the Plan;
-- A Dec. 9 deadline for the Debtors to file a reply in
support of the Plan; and
-- A Dec. 10, 2015, at 10:00 a.m., Eastern Time, confirmation
hearing.
Objections to Disclosure Statement
Objections to the Disclosure Statement were filed by:
* The United States Trustee; and
* NuStar Energy Services, Inc., NuStar Supply & Trading LLC's
and NuStar Terminals Marine Services N.V.
Bomin Bunker Oil Corp., O'Rourke Marine Services L.P., L.L.P., and
Dolphin Marine Fuels, LLC, also submitted a joinder to the
objection.
The U.S. Trustee objects to the Debtors' filing a plan supplement
containing the trust agreement and other information "that will be
filed five (5) days prior to the deadline to submit ballots." The
Debtors clarify that the Disclosure Statement indicates that the
Plan Supplement would be filed five business days before the voting
deadline -- November 23, 2015 -- and seven days before the voting
deadline.
The UST objection also asserts that the Disclosure Statement and
Plan "do not identify who the secured creditors are" in Classes 2
and 8 and "do not identify the holders of subordinated claims" in
Classes 5 and 11. As to OWB USA, the Liquidation Analysis
indicates that there are no Secured Claimants (Class 2) in
connection with this Plan. OWB NA has approximately $2.3 million in
secured claims (Class 8), which have been previously identified as
escrowed funds related to the Vopak oil sale from December 2014.
With respect to the Subordinated Claims (Classes 5 and 11), the
Debtors believe that this class will be made up mostly, if not
exclusively, by Foreign Affiliates who are Holders of asserted
inter-company claims against one or more of the Debtors.
The NuStar objection contends that the Disclosure Statement does
not provide sufficient information related to the estimated return
for creditors in a hypothetical chapter 7 liquidation. However,
the Debtors point out that the Liquidation Analysis indicates that
in both OWB USA and OWB NA, a chapter 7 liquidation would likely
provide a 0.0% recovery to the Debtors' unsecured creditors.
Additionally, the Disclosure Statement contains an extensive
discussion of the Debtors' litigation against ING Bank, the
resolution of that litigation through the plan confirmation
process, the Confirmation Alternative Settlement (as that term is
defined in the Disclosure Statement and Plan), and, most important,
the critical agreement of ING Bank to subordinate its asserted
secured claims to facilitate confirmation of a chapter 11 plan and
provide for the greatly enhanced distribution to unsecured
creditors.
With respect to NuStar, the Debtors do not believe that any
additional disclosure is necessary. NuStar has indicated that it
intends to vote against the Plan and no additional disclosures will
impact, much less change, NuStar's vote on whether to accept or
reject the Plan. According to the Debtors, NuStar's objection
comports with its long-term strategy to impose additional
roadblocks to Plan confirmation, solely in an effort to further its
own litigation purposes and to gain leverage over the confirmation
process as a whole.
Both the UST Objection and the NuStar objection assert that the
Plan provides for non-debtor, third-party releases that contravene
the Second Circuit's decision in Deutsche Bank AG v. Metromedia
Fiber Network, Inc. (In re Metromedia Fiber Network, Inc.), 416
F.3d 136 (2d Cir. 2005). The Debtors aver that both the U.S.
Trustee and NuStar, in asserting "patent unconfirmability", misread
Metromedia and its progeny. The Debtors argued that the Court
should defer consideration of the appropriateness of the
third-party releases and exculpation provisions, especially with
respect to determining whether creditors have consented to the
releases, until Plan confirmation.
Responding to the objections, the Official Committee of Unsecured
Creditors argued, "These claimants raise objections not to achieve
a higher or better recovery, but rather, solely to exploit their
position as holdouts in an effort to obtain special treatment not
afforded to other parties or, in the case of NuStar, to gain
leverage in the many proceedings outside of the Bankruptcy Court in
which it is a litigant adverse to the Debtors. Ulterior motives
and a desire for impermissible preferential treatment, in short,
compel their irrational opposition to the Plan."
Counsel to the United States Trustee for Region 2:
Holley L. Claiborn
Trial Attorney
Office of the United States Trustee
Giaimo Federal Building, Room 302
150 Court Street
New Haven, CT 06510
Tel: (203) 773-2210
Attorneys for NuStar:
Eric Henzy
1 Financial Plaza, 21st Floor
Hartford, CT 06103
Telephone: (860) 240-1081
Telecopier: (860) 240-1002
E-mail: ehenzy@rrlawpc.com
- and -
Michael M. Parker, Esq.
Steve A. Peirce, Esq.
NORTON ROSE FULBRIGHT US LLP
300 Convent Street, Suite 2100
San Antonio, TX 78205
Telephone: (210) 224-5575
Facsimile: (210) 270-7205
E-mail: michael.parker@nortonrosefulbright.com
steve.peirce@nortonrosefulbright.com
Counsel to the Official Committee of Unsecured Creditors:
HUNTON & WILLIAMS LLP
Peter S. Partee, Sr.
Michael P. Richman
Andrew Kamensky
200 Park Avenue
New York, NY 10166-0136
Telephone: (212) 309-1000
Facsimile: (212) 309-1100
E-mail: ppartee@hunton.com
mrichman@hunton.com
akamensky@hunton.com
About O.W. Bunker
OW Bunker AS is a global marine fuel (bunker) company founded in
Denmark. The company declared bankruptcy on Nov. 7, 2014,
following its admission that it had lost US$275 million through a
combination of fraud committed by senior executives at its
Singaporean unit.
The Danish company placed its U.S. subsidiaries -- O.W. Bunker
Holding North America Inc., O.W. Bunker North America Inc. and
O.W. Bunker USA Inc. -- in Chapter 11 bankruptcy (Bankr. D. Conn.
Case Nos. 14-51720 to 14-51722) in Bridgeport, Conn., on Nov. 13,
2014.
The U.S. cases are assigned to Judge Alan H.W. Shiff. The U.S.
Debtors have tapped Patrick M. Birney, Esq., and Michael R.
Enright, Esq., at Robinson & Cole LLP, as counsel. McCracken,
Walker & Rhoads LLP is serving as co-counsel. Alvarez & Marsal is
the financial advisor.ne fuel (bunker) company founded in Denmark.
The company declared bankruptcy on Nov. 7, 2014, following its
admission that it had lost US$275 million through a combination of
fraud committed by senior executives at its Singaporean unit.
The Danish company placed its U.S. subsidiaries -- O.W. Bunker
Holding North America Inc., O.W. Bunker North America Inc. and
O.W. Bunker USA Inc. -- in Chapter 11 bankruptcy (Bankr. D. Conn.
Case Nos. 14-51720 to 14-51722) in Bridgeport, Conn., on Nov. 13,
2014.
The U.S. cases are assigned to Judge Alan H.W. Shiff. The U.S.
Debtors have tapped Patrick M. Birney, Esq., and Michael R.
Enright, Esq., at Robinson & Cole LLP, as counsel. McCracken,
Walker & Rhoads LLP is serving as co-counsel. Alvarez & Marsal is
the financial advisor.
O.W. BUNKER: To Seek Confirmation of Liquidation Plan Dec. 10
-------------------------------------------------------------
O.W. Bunker, North America, Inc. and O.W. Bunker USA, Inc., are
slated to seek confirmation of their liquidation plan at a hearing
on Dec. 10, 2015.
The Plan was extensively and successfully negotiated after multiple
days of mediation before the Honorable Alan H. Nevas (U.S.D.J.,
Ret.) and provides a substantial recovery to the Debtors' unsecured
creditors in the form of a "Liquidation Preference" of 25% of the
general unsecured claim in the chapter 11 bankruptcy case of O.W.
Bunker, North America, Inc. ("OWB NA"), and 40% in the chapter 11
case of O.W. Bunker USA, Inc., ("OWB USA").
The Plan has the support of both the Official Committee of
Unsecured Creditors and ING Bank N.V., which is also the Debtors'
largest creditor.
The Debtors aver that the Plan is more than capable of being
confirmed. Under the Plan, allowed administrative expenses will be
paid in full; a substantial recovery is available for unsecured
creditors. The Debtors believe the Plan is manifestly better for
their creditors than any other alternative; the Debtors' creditors
should be permitted to vote on the Plan and the Debtors should be
permitted to demonstrate that the Plan is confirmable.
O.W. Bunker Holding North America, Inc. ("OWB Holding") has no
assets apart from its equity interests in OWB NA and OWB USA, which
Equity Interests will be cancelled and will receive no
Distributions pursuant to the Plan. Accordingly, as to OWB Holding
only, the Plan constitutes a motion by which OWB Holding requests
that the Bankruptcy Court dissolve or grant OWB Holding the
authority to dissolve on the Effective Date pursuant to applicable
state law.
The Plan provides for the liquidation and conversion of all of OWB
NA's and OWB USA's remaining assets to cash, and the distribution
of the net proceeds realized therefrom to the holders of allowed
claims in accordance with the priorities established by the
Bankruptcy Code and such priorities have been modified by the
agreements embodied in the Plan. Pursuant to the Plan the assets
of OWB USA will be contributed to the OWB USA Liquidating Trust and
the assets of OWB NA will be contributed to the OWB NA Liquidating
Trust, maintained in separate accounts, and used to pay the costs
and expenses of the applicable Liquidating Trust (including the
costs of each Liquidating Trust's Professionals) and to make
Distributions in accordance with the Plan.
The primary unliquidated assets of OWB NA's and OWB USA's Estates
are the Debtors' interests in supply receivables and certain
pending litigation. This litigation includes dozens of interpleader
and maritime arrest actions pending in jurisdictions throughout the
U.S. and abroad relating to the Debtors' Supply Receivables. In
these proceedings, the Debtors have asserted or may assert a Claim
against a contract counterparty, customer, vessel, posted bond,
escrow account, or interpleader stake securing the Debtors' right
to payment on its receivables. Other suppliers, brokers and
intermediaries, including ING Bank as purported assignee of the
Debtors' and certain of their affiliates' Supply Receivables, have
asserted or may assert competing claims in these interpleader and
arrest actions.
The Debtors believe the Plan provides the best possible opportunity
for Holders of allowed general unsecured claims to maximize their
recoveries from the Debtors' estates. ING Bank has asserted claims
against OWB NA and OWB USA that are currently estimated to be in
excess of $715 million and $734 million, respectively, certain of
which claims are secured by liens that the Debtors have sought to
avoid through litigation pending before the Bankruptcy Court as
preferential transfers pursuant Chapter 5 of the Bankruptcy Code.
Among the features of the settlement with ING Bank embodied in the
Plan, the agreed "waterfall" in accordance with which the
Liquidating Trusts will make Distributions provides substantial
value to the Debtors' general unsecured creditors who would
otherwise run a substantial risk of having their allowed claims
massively diluted by ING Bank's allowed claims even in the event
the Debtors were successful in avoiding ING Bank's liens.
The Debtors on Oct. 14, 2015, filed their proposed Liquidation Plan
and Disclosure Statement. The Debtors on Oct. 26 file a First
Amended Disclosure Statement. A copy of the First Amended
Disclosure Statement is available for free at:
http://bankrupt.com/misc/OW_Bunker_1089_1st_Am_DS.pdf
Counsel to Debtors:
Michael R. Enright, Esq.
Patrick M. Birney, Esq.
ROBINSON & COLE LLP
280 Trumbull Street
Hartford, CT 06103
Telephone: (860) 275-8290
Facsimile: (860) 275-8299
E-mail: menright@rc.com
pbirney@rc.com
- and -
Natalie D. Ramsey, Esq.
Davis Lee Wright, Esq.
MONTGOMERY, McCRACKEN, WALKER & RHOADS, LLP
437 Madison Avenue, 29th Floor
New York, NY 10022
Telephone: (212) 867-9500
Facsimile: (212) 599-1759
E-mail: nramsey@mmwr.com
dwright@mmwr.com
About O.W. Bunker
OW Bunker AS is a global marine fuel (bunker) company founded in
Denmark. The company declared bankruptcy on Nov. 7, 2014,
following its admission that it had lost US$275 million through a
combination of fraud committed by senior executives at its
Singaporean unit.
The Danish company placed its U.S. subsidiaries -- O.W. Bunker
Holding North America Inc., O.W. Bunker North America Inc. and
O.W. Bunker USA Inc. -- in Chapter 11 bankruptcy (Bankr. D. Conn.
Case Nos. 14-51720 to 14-51722) in Bridgeport, Conn., on Nov. 13,
2014.
The U.S. cases are assigned to Judge Alan H.W. Shiff. The U.S.
Debtors have tapped Patrick M. Birney, Esq., and Michael R.
Enright, Esq., at Robinson & Cole LLP, as counsel. McCracken,
Walker & Rhoads LLP is serving as co-counsel. Alvarez & Marsal is
the financial advisor.ne fuel (bunker) company founded in
Denmark. The company declared bankruptcy on Nov. 7, 2014,
following its admission that it had lost US$275 million through a
combination of fraud committed by senior executives at its
Singaporean unit.
The Danish company placed its U.S. subsidiaries -- O.W. Bunker
Holding North America Inc., O.W. Bunker North America Inc. and
O.W. Bunker USA Inc. -- in Chapter 11 bankruptcy (Bankr. D. Conn.
Case Nos. 14-51720 to 14-51722) in Bridgeport, Conn., on Nov. 13,
2014.
The U.S. cases are assigned to Judge Alan H.W. Shiff. The U.S.
Debtors have tapped Patrick M. Birney, Esq., and Michael R.
Enright, Esq., at Robinson & Cole LLP, as counsel. McCracken,
Walker & Rhoads LLP is serving as co-counsel. Alvarez & Marsal is
the financial advisor.
OLGA'S KITCHEN: Team Schostak Outbids Cosmo Hospitality for Assets
------------------------------------------------------------------
Team Schostak Family Restaurants has won the auction for Olga's
Kitchen Inc. and its 27 remaining locations with a $11.25 million
bid, JC Reindl at Detroit Free Press reports, citing a person
familiar with the matter.
According to Free Press, Team Schostak outbid Cosmo Hospitality,
its only competitor in the auction. Team Schostak was the
auction's opening bidder with an initial $8.3-million offer, the
report states.
Olga's Kitchen Inc. is headquartered in Troy, Michigan, and is best
known for its Mediterranean-inspired pita wraps, curly fries and
quirky offerings, such as an orange creme cooler.
The Company filed for Chapter 11 bankruptcy protection (Bankr. E.D.
Mich. Case No. 15-49008) on June 11, 2015, estimating its assets
and liabilities at between $1 million and $10 million each. The
petition was signed by Robert Solomon, principal.
Judge Walter Shapero presides over the case.
Robert N. Bassel, Esq., at Robert Bassel, Attorney, serves as the
Company's bankruptcy counsel.
OW BUNKER: Has Until Nov. 30 to Solicit Plan Acceptances
--------------------------------------------------------
The Hon. Alan H. W. Shiff of the U.S. Bankruptcy Court for the
District of Connecticut extended O.W. Bunker Holding North America
Inc., et al.'s exclusive periods to file a chapter 11 plan until
Oct. 14, 2015, and solicit acceptances for that plan until
Nov. 30, 2015.
The Debtors had responded to the objection filed by Nustar Energy
Services, Inc. and Nustar Supply & Trading LLC and Nustar Terminals
Marine Services N.V.
According to the Debtors, NuStar asserted that exclusivity should
be denied because "no confirmable plan has been proposed." As the
Court has been informed on several occasions, the Debtors, the
Committee, and ING Bank are working on a chapter 11 plan that
benefits all of the Debtors' unsecured creditors, not just NuStar.
If NuStar questions the Debtors' ability to confirm a Plan, NuStar
should reserve that objection for the plan confirmation process and
not distract the Debtors, the Committee, ING Bank, and their
respective professionals with objections to every item of relief
requested and motions to convert the cases. Conversely, the
Debtors must be entitled to present a reorganization plan, have the
unsecured creditors vote on the plan, and demonstrate that such a
plan is feasible and in the best interests in the Debtors' estates.
NuStar, in their objection to the fourth motion, said that the
Debtors have engaged in wasteful venue litigation while failing to
prosecute critical lien avoidance claims; settlement negotiations
have proven unsuccessful, and no plan is confirmable.
About O.W. Bunker
OW Bunker AS is a global marine fuel (bunker) company founded in
Denmark. The company declared bankruptcy on Nov. 7, 2014,
following its admission that it had lost US$275 million through a
combination of fraud committed by senior executives at its
Singaporean unit.
The Danish company placed its U.S. subsidiaries -- O.W. Bunker
Holding North America Inc., O.W. Bunker North America Inc. and
O.W. Bunker USA Inc. -- in Chapter 11 bankruptcy (Bankr. D. Conn.
Case Nos. 14-51720 to 14-51722) in Bridgeport, Conn., on Nov. 13,
2014.
The U.S. cases are assigned to Judge Alan H.W. Shiff. The U.S.
Debtors have tapped Patrick M. Birney, Esq., and Michael R.
Enright, Esq., at Robinson & Cole LLP, as counsel. McCracken,
Walker & Rhoads LLP is serving as co-counsel. Alvarez & Marsal is
the financial advisor.ne fuel (bunker) company founded in
Denmark. The company declared bankruptcy on Nov. 7, 2014,
following its admission that it had lost US$275 million through a
combination of fraud committed by senior executives at its
Singaporean unit.
The Danish company placed its U.S. subsidiaries -- O.W. Bunker
Holding North America Inc., O.W. Bunker North America Inc. and
O.W. Bunker USA Inc. -- in Chapter 11 bankruptcy (Bankr. D. Conn.
Case Nos. 14-51720 to 14-51722) in Bridgeport, Conn., on Nov. 13,
2014.
The U.S. cases are assigned to Judge Alan H.W. Shiff. The U.S.
Debtors have tapped Patrick M. Birney, Esq., and Michael R.
Enright, Esq., at Robinson & Cole LLP, as counsel. McCracken,
Walker & Rhoads LLP is serving as co-counsel. Alvarez & Marsal is
the financial advisor.
* * *
Carmen Germaine at Bankruptcy Law360 reported that marine fuel
shipper OW Bunker filed a Chapter 11 liquidation plan on Oct. 14,
2015, in Connecticut bankruptcy court, proposing to set up two
trusts to liquidate the assets of its North American businesses
and
repay part of the nearly $100 million creditors are owed.
Under the plan, OW Bunker A/S will create two liquidating trusts,
one for each of its North American units, to hold the estate
assets
of each company and make distributions to creditors, while parent
OW Bunker Holding North America Inc. will dissolve.
PACIFIC RECYCLING: Calbag Supply and Loan Agreement Approved
------------------------------------------------------------
Judge Frank R. Alley of the U.S. Bankruptcy Court for the District
of Oregon has entered an order authorizing Pacific Recycling, Inc.
to enter into an Exclusive Supply and Financing Agreement dated
Sept. 14, 2015, with Calbag Metals Co.
Under the Agreement, PRI will be selling to Calbag all non-ferrous
scrap metal products of PRI, processed and unprocessed, that are
acquired by PRI other than those products that are listed on
Calbag's "Do Not Buy" list and those products that are identified
by Calbag from time to time as ineligible for purchase under the
Agreement. Calbag has agreed to provide PRI a secured revolving
line of credit facility in a principal amount up to but not
exceeding $150,000.
Calbag will pay PRI market prices for all-nonferrous metal that
Calbag purchases under the Agreement. If PRI has an offer from a
scrap processor of reasonable size and standing that is at least 5
percent higher than the market price offered by Calbag for that
non-ferrous metal, then PRI will give Calbag the opportunity to
match the other scrap processor's offered price. All sales to
Calbag under the Agreement will be delivered FOB at Calbag's
facility in Portland, Oregon.
Calbag will, upon the terms and conditions hereof, make loans to
PRI under the Credit Line from time to time during the period from
the date of the Agreement until the earlier of Dec. 31, 2016 or the
occurrence of an Event of Default. Interest on the outstanding and
unpaid principal amount of loans made under the Credit Line will
accrue at the rate of 7 percent per annum.
Calbag will be granted superpriority administrative expense status
under Section 364(c)(1) of the Bankruptcy Code for all unpaid
obligations under the Agreement, and Calbag's security interest
under the Agreement will be a fully perfected first priority lien
on all new inventor and the credit line bank account, under Sec.
364(c)(2) of the Bankruptcy Code.
A copy of the Order, including the Exclusive Supply and Financing
Agreement, is available for free at:
http://bankrupt.com/misc/Pacific_R_82_Calbag_Deal_Order.pdf
About Pacific Recycling
Pacific Recycling, Inc.'s primary business is operating a metal
recycling center in Eugene, Oregon.
Pacific Recycling filed a Chapter 11 bankruptcy petition (Bankr. D.
Ore. Case No. 15-62925) on Aug. 27, 2015. The petition was signed
by Rodney Schultz as president. The Debtor disclosed total assets
of $5,996,665 and total liabilities of $21,718,414. Hon. Frank R.
Alley III is assigned to the case. Cable Huston LLP represents the
Debtor as counsel.
The U.S. Trustee for Region 18 appointed four creditors of Pacific
Recycling to serve on the official committee of unsecured
creditors. The Creditors Committee tapped Cassie K. Jones, Esq.,
and the law firm of Gleaves Swearingen LLP as counsel.
PACIFIC RECYCLING: Final Cash Collateral Order Entered
------------------------------------------------------
Judge Frank R. Alley of the U.S. Bankruptcy Court for the District
of Oregon entered a final order authorizing Pacific Recycling,
Inc., to use cash collateral.
There are three creditors who may claim an interest in cash
collateral, including cash and bank deposits, accounts receivable
and scrap metal inventory. Banner Bank is owed $1 million on a
line of credit provided by Siuslaw Bank in 2014. In addition,
Banner claims a lien on inventory, accounts receivable and other
assets to secure the Debtor's obligation as guarantor on a real
estate loan to PAC Recycling, LLC, with an outstanding balance of
$2.5 million. VFI and Strategic Funding Source also filed
financing statements claiming a security interest in the Debtor's
inventory.
The Debtor is authorized to use cash collateral of up to $40,962
per week to cover costs of the processing and selling the Debtor's
prepetition inventory.
The Debtor is also authorized to use cash collateral to pay up to
$16,000 to EWEB as a deposit for electrical service.
The Debtor will proceed in good faith with reasonable due diligence
to process and sell the prepetition inventory as promptly as is
commercially reasonable. The Debtor is authorized to sell the
inventory at the estimated project prices or the current market
price if at least 90% of the projected sales price. A lesser price
must be approved or rejected by Banner Bank within 48 hours after
written notice from the Debtor.
All proceeds from the sale of prepetition inventory will be
deposited in the cash collateral account at Wells Fargo Bank. In
no event will the cash collateral utilized by the Debtor exceed the
lesser of:
a. The total of $218,800 for loading, handling and processing
costs, including operation of the shredder, plus actual freight
charges incurred in connection with sale of prepetition inventory;
or
b. The sum of $327,000, without further order of the court.
The Debtor is authorized to disburse the sum of $100,000 to Banner
Bank, which will reduce the principal amount of Banner's claim. On
a weekly basis, after deducting the reimbursement expenses for the
Debtor, the Debtor will retain the sum of $82,000 in the cash
collateral account to cover the maximum allowable expenses for a
two-week period of time and disburse any excess funds to Banner
Bank. When the final true-up is completed, all remaining funds in
the cash collateral account will be disbursed to Banner. In no
event will funds paid to Banner exceed the sum of $1,025,200.
Banner, VFI and Strategic Funding will retain their liens on the
prepetition inventory, accounts receivable, funds on deposit in the
cash collateral account and other assets, if any, in the same
priority as existed on the Petition Date.
The Court entered an interim order authorizing the use of cash
collateral on Oct. 2, 2015. The Court entered a Final Cash
Collateral Order on Nov. 5, 2015. A copy of the Final Order is
available for free at:
http://bankrupt.com/misc/Pacific_R_136_Final_Cash_Order.pdf
About Pacific Recycling
Pacific Recycling, Inc.'s primary business is operating a metal
recycling center in Eugene, Oregon.
Pacific Recycling filed a Chapter 11 bankruptcy petition (Bankr. D.
Ore. Case No. 15-62925) on Aug. 27, 2015. The petition was signed
by Rodney Schultz as president. The Debtor disclosed total assets
of $5,996,665 and total liabilities of $21,718,414. Hon. Frank R.
Alley III is assigned to the case. Cable Huston LLP represents the
Debtor as counsel.
The U.S. Trustee for Region 18 appointed four creditors of Pacific
Recycling to serve on the official committee of unsecured
creditors. The Creditors Committee tapped Cassie K. Jones, Esq.,
and the law firm of Gleaves Swearingen LLP as counsel.
PEABODY ENERGY: Stock Price Surges Following Sale Announcement
--------------------------------------------------------------
Tim Loh, writing for Bloomberg Brief - Distress & Bankruptcy,
reported that Peabody Energy Corp. surged the most in almost seven
weeks after the company agreed to sell its coal operations in New
Mexico and Colorado and focus on assets in Wyoming, the U.S.
Midwest and Australia.
Peabody, the largest U.S. coal miner, said after the markets closed
Nov. 20 that it's selling its El Segundo and Lee Ranch mines in New
Mexico and its Twentymile Mine in Colorado for $358 million in cash
to Bowie Resource Partners LLC, which is also assuming $105 million
in related liabilities, according to the report. Shares climbed as
much as 16 percent to $13.08, the most since Oct. 6, and ended
trading at $11.68 on Nov. 23 in New York, the report related.
The deal further reduces over $300 million of Peabody’s
"self-bonding" in place for reclamation obligations, Jeremy
Sussman, a New York-based analyst at Clarksons Platou Securities
Inc., said in a note to clients, the report further related.
Self-bonding programs exempt miners that maintain strong balance
sheets from having to set aside cash or other instruments to cover
environmental cleanup costs, the report said.
About Peabody Energy
Peabody Energy Corporation is the world's largest private sector
coal company with coal mining operations in the US and Australia
and close to 8 billion tons of proven and probable reserves. For
the twelve months ended December 31, 2014, the company sold 249.8
million tons of coal and generated $6.8 billion in revenues,
including 25 million tons of thermal coal sold from the Midwestern
division, 166.4 million tons of thermal coal sold from the Powder
River Basin and Colorado, 38.2 million of tons of thermal and
metallurgical coal from Australia, and 20.2 million tons from
trading and brokerage. For the twelve months ended June 30, 2015,
the company generated $6.3 billion in revenues.
* * *
As reported by the Troubled Company Reporter on Sept. 1, 2015,
Moody's Investors Service downgraded the ratings of Peabody
Energy,
including the corporate family rating (CFR) to Caa1 from B3,
probability of default rating (PDR) to Caa1-PD from B3-PD, the
ratings on senior secured credit facility to B2 from B1, the
ratings on second lien debt to Caa1 from B3, the ratings on senior
unsecured notes to Caa2 from Caa1, and the junior subordinated
debenture ratings to Caa3 from Caa2. The speculative grade
liquidity rating of SGL-3 remains unchanged. The ratings were
placed on review for further downgrade.
PREMIER EXHIBITIONS: Gets Delisting Notice from Nasdaq
------------------------------------------------------
Premier Exhibitions, Inc., received a letter on Nov. 4, 2015, from
the Listing Qualifications Department of the Nasdaq Stock Market
relating to the Company's merger transaction with Dinoking Tech
Inc. The Notice informed the Company of Nasdaq's determination
that the Merger was a "Change of Control" pursuant to Nasdaq
Listing Rule 5110(a), and that the post-transaction entity was
required to submit a listing application satisfying Nasdaq's
initial listing criteria.
The Notice indicated that: (i) Nasdaq was unable to complete its
review of the Company's listing application due to incomplete
responses by the Company to certain Nasdaq comments; (ii) the
Company did not comply with the minimum $4 requirement for an
initial listing, as stated in Nasdaq Listing Rule 5505(a); and
(iii) accordingly, that Nasdaq intended to delist the Company.
The Company is permitted, and intends to, appeal the Nasdaq
determination to a Hearings Panel. The Company must notify Nasdaq
of its intent to appeal the determination no later than Nov. 11,
2015. There can be no assurance that the Company's appeal, even if
timely made, will be successful or that the Company will be able to
formulate or implement a plan satisfactory to the Hearings Panel
that allows it to regain compliance and maintain the listing of its
common stock on Nasdaq.
About Premier Exhibitions
Premier Exhibitions, Inc., develops, deploys and operates
exhibition products that are presented to the public in exhibition
centers, museums and non-traditional venues. The Atlanta-based
Company's exhibitions generate income primarily through ticket
sales, third-party licensing, sponsorship and merchandise sales.
Premier Exhibitions reported a net loss of $11.7 million on $29.4
million of total revenue for the year ended Feb. 28, 2015, compared
with a net loss of $778,000 on $29.3 million of total revenue for
the year ended Feb. 28, 2014.
As of Aug. 31, 2015, the Company had $35.89 million in total
assets, $32.2 million in total liabilities, $2.66 million in equity
attributable to shareholders of the Company and $1.02 million in
equity attributable to non-controlling interest.
Bankruptcy Warning
On April 2, 2015, the Company announced that it had entered into a
definitive merger agreement whereby it plans to combine with
Dinoking Tech Inc. Under the Merger Agreement, the DK shareholders
will be entitled to up to 24% of the fully diluted ownership of the
Company for all of the issued and outstanding shares of DK. In
addition, an investor group has agreed to provide up to $13.5
million in convertible debt funding to Premier to repay $8 million
of existing debt and $5.5 million for corporate purposes including
the completion of the development of "Saturday Night Live: The
Exhibition" and "Premier Exhibitions 5th Avenue," the Company's
state-of-the-art exhibition and special events center located in
New York City. As of August 31, 2015, the investor group had
provided the entire $13.5 million of funding. Upon closing of the
merger transaction, the debt will be convertible into shares of the
Company based on a price of $4.48 per share, if the conversion is
approved by shareholders. The Company used this funding to retire
the debt owed to Pentwater Capital, to continue funding
improvements on the building at 417 Fifth Avenue, and to complete
our "Saturday Night Live" exhibition. The transaction has been
approved by the Board of Directors of Premier. Premier's principal
shareholder, Sellers Capital, LLC, and the directors and officers
of the Company have entered into agreements to vote in favor of the
transaction. The completion of the transaction is subject to
Premier shareholder approval among other customary closing
conditions. The shareholder meeting to approve the transaction is
expected to be held on Oct. 29, 2015. The merger is expected to be
completed on Oct. 29, 2015.
"While the Company recently repaid a loan of $8.0 million, the
Company will have to repay $13.5 million received in convertible
debt funding if the merger transaction does not close. As a
result, the Company will have to refinance the debt or obtain funds
to repay the debt in full if that occurs. In addition, if the
merger transaction is terminated under certain conditions the
Company would be required to pay a $1 million breakup fee to DK.
The Company could be capital constrained and unable to fulfill the
terms of this and other agreements if its access to capital sources
does not improve in the near term.
"If the Merger Agreement transactions are not approved by
shareholders, or additional financing is not obtained, the Company
may have to seek the protection of the U.S. bankruptcy laws and/or
cease operating as a going concern. In addition, if the Company
does not meet its payment obligations to third parties as they come
due, the Company may be subject to an involuntary bankruptcy
proceeding or other litigation claims, which it would likely not
have the resources to defend," the Company states in its quarterly
report for the period ended Aug. 31, 2015.
PREMIER EXHIBITIONS: Mark Sellers Quits as Director
---------------------------------------------------
Mark Sellers resigned from the Board of Directors of Premier
Exhibitions, Inc., effective Nov. 5, 2015, according to a Form 8-K
filing with the Securities and Exchange Commission.
About Premier Exhibitions
Premier Exhibitions, Inc., develops, deploys and operates
exhibition products that are presented to the public in exhibition
centers, museums and non-traditional venues. The Atlanta-based
Company's exhibitions generate income primarily through ticket
sales, third-party licensing, sponsorship and merchandise sales.
Premier Exhibitions reported a net loss of $11.7 million on $29.4
million of total revenue for the year ended Feb. 28, 2015, compared
with a net loss of $778,000 on $29.3 million of total revenue for
the year ended Feb. 28, 2014.
As of Aug. 31, 2015, the Company had $35.89 million in total
assets, $32.2 million in total liabilities, $2.66 million in equity
attributable to shareholders of the Company and $1.02 million in
equity attributable to non-controlling interest.
Bankruptcy Warning
On April 2, 2015, the Company announced that it had entered into a
definitive merger agreement whereby it plans to combine with
Dinoking Tech Inc. Under the Merger Agreement, the DK shareholders
will be entitled to up to 24% of the fully diluted ownership of the
Company for all of the issued and outstanding shares of DK. In
addition, an investor group has agreed to provide up to $13.5
million in convertible debt funding to Premier to repay $8 million
of existing debt and $5.5 million for corporate purposes including
the completion of the development of "Saturday Night Live: The
Exhibition" and "Premier Exhibitions 5th Avenue," the Company's
state-of-the-art exhibition and special events center located in
New York City. As of August 31, 2015, the investor group had
provided the entire $13.5 million of funding. Upon closing of the
merger transaction, the debt will be convertible into shares of the
Company based on a price of $4.48 per share, if the conversion is
approved by shareholders. The Company used this funding to retire
the debt owed to Pentwater Capital, to continue funding
improvements on the building at 417 Fifth Avenue, and to complete
our "Saturday Night Live" exhibition. The transaction has been
approved by the Board of Directors of Premier. Premier's principal
shareholder, Sellers Capital, LLC, and the directors and officers
of the Company have entered into agreements to vote in favor of the
transaction. The completion of the transaction is subject to
Premier shareholder approval among other customary closing
conditions. The shareholder meeting to approve the transaction is
expected to be held on Oct. 29, 2015. The merger is expected to be
completed on Oct. 29, 2015.
"While the Company recently repaid a loan of $8.0 million, the
Company will have to repay $13.5 million received in convertible
debt funding if the merger transaction does not close. As a
result, the Company will have to refinance the debt or obtain funds
to repay the debt in full if that occurs. In addition, if the
merger transaction is terminated under certain conditions the
Company would be required to pay a $1 million breakup fee to DK.
The Company could be capital constrained and unable to fulfill the
terms of this and other agreements if its access to capital sources
does not improve in the near term.
"If the Merger Agreement transactions are not approved by
shareholders, or additional financing is not obtained, the Company
may have to seek the protection of the U.S. bankruptcy laws and/or
cease operating as a going concern. In addition, if the Company
does not meet its payment obligations to third parties as they come
due, the Company may be subject to an involuntary bankruptcy
proceeding or other litigation claims, which it would likely not
have the resources to defend," the Company states in its quarterly
report for the period ended Aug. 31, 2015.
PUTNAM ENERGY: Court Denies Bid for Exclusive Period Extension
--------------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Illinois
denied Putnam Energy, L.L.C.'s motion for extension of its
exclusive periods to file a Chapter 11 Plan and Disclosure
Statement.
As reported in the Troubled Company Reporter on Sept. 8, 2015, the
Court has extended the Debtor's exclusive periods to file a plan of
reorganization until Oct. 6, 2015, and solicit acceptances for that
plan until Dec. 7.
About Putnam Energy
Putnam Energy, L.L.C., a company with power plant and pipeline
assets, sought Chapter 11 protection (Bankr. N.D. Ill. Case No.
15-08733) on March 11, 2015, in Chicago, Illinois, after it failed
to reach a forbearance agreement with its lender.
The Debtor disclosed $10,394,596 in assets and $2,283,218 in
liabilities as of the Chapter 11 filing.
The case is assigned to Judge Carol A. Doyle. Terrence O'Malley,
manager and CEO, signed the petition.
The Debtor is represented by Douglas S Draper, Esq., at Heller,
Draper, Patrick, Horn & Dabney, LLC, in New Orleans, as counsel.
QUIRKY INC: Creditors' Meeting Adjourned to Dec. 1
--------------------------------------------------
The meeting of creditors of Quirky Inc. has been adjourned to Dec.
1, 2015 at 3:30 p.m. (prevailing Eastern time), according to a
filing with the U.S. Bankruptcy Court for the Southern District of
New York.
The meeting will take place at the Office of the U.S. Trustee, 4th
Floor, 80 Broad Street, in New York.
The court overseeing the bankruptcy case of a company schedules the
meeting of creditors usually about 30 days after the bankruptcy
petition is filed. The meeting is called the "341 meeting" after
the section of the Bankruptcy Code that requires it.
A representative of the company is required to appear at the
meeting and answer questions under oath. The meeting is presided
over by the U.S. trustee, the Justice Department's bankruptcy
watchdog.
About 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 filed
Chapter 11 bankruptcy petitions (Bankr. S.D.N.Y. Lead Case No.
15-12596) on Sept. 22, 2015, with a deal 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.
Judge Martin Glenn is assigned to the jointly administered cases.
Quirky estimated assets in the range of $10 million to $50 million
and liabilities of at least $50 million.
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.
The U.S. Trustee for Region 2 appointed five members to the
Official Committee of Unsecured Creditors.
QUIRKY INC: Judge to Hold Hearing on Asset Sale on Dec. 7
---------------------------------------------------------
U.S. Bankruptcy Judge Martin Glenn is set to hold a hearing on Dec.
7 to consider the sale of Quirky Inc.'s assets.
Quirky, maker and seller of general household products, put its
assets up for sale following its bankruptcy filing in September.
The assets include substantially all of the company's intellectual
property.
On Oct. 27, Quirky received approval from the bankruptcy judge to
launch a bidding process for potential suitors to buy its assets.
The court-supervised process required the company to hold an
auction if the assets drew multiple bids.
Quirky is yet to announce in court filings if it received offers
for the assets other than the $2.3 million stalking horse bid made
by Q Holdings LLC.
The bidding process had drawn criticisms from both the U.S. trustee
and the official committee of unsecured creditors.
William Harrington, the U.S. trustee for Region 2, opposed the sale
of personally identifiable information of approximately 1.2 million
Quirky community members.
To resolve the U.S. trustee's objection, personally identifiable
information of some community members was excluded from the sale,
according to court filings.
Meanwhile, the unsecured creditors' committee expressed concern
over the "fast sales process" proposed by the company. Quirky
resolved the objection by extending the deadline for the committee
to object to the sale, and by adjourning the sale hearing,
initially scheduled for Nov. 24, to Dec. 7.
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 filed
Chapter 11 bankruptcy petitions (Bankr. S.D.N.Y. Lead Case No.
15-12596) on Sept. 22, 2015, with a deal 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.
Judge Martin Glenn is assigned to the jointly administered cases.
Quirky estimated assets in the range of $10 million to $50 million
and liabilities of at least $50 million.
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.
The U.S. Trustee for Region 2 appointed five members to the
Official Committee of Unsecured Creditors.
RELATIVITY MEDIA: Has Until Feb. 1 to Propose Chapter 11 Plan
-------------------------------------------------------------
The Hon. Michael E. Wiles of the Bankruptcy Court for the Southern
District of New York extended Relativity Fashion, LLC, et al.'s
exclusive periods to file a chapter 11 plan until Feb. 1, 2016, and
solicit acceptances for that plan until April 1, 2016.
The Debtors had responded to the limited objection of CIT Bank,
N.A., formerly known as OneWest Bank N.A., stating that they had
clearly demonstrated cause for their request to extend their
exclusivity periods.
Additionally, while the maturity date of the debtor-in-possession
financing facility is pegged at Jan. 31, 2016, the Debtors are in
constant communication with their DIP Lenders and expect that the
DIP Lenders will give due consideration to a potential need for an
extension of that maturity date if that need arise.
CIT Bank stated that the Debtors have failed to reveal openly the
proposed terms of any such plan, and have also failed to include
all of their key constituencies in any plan negotiations.
Hunter Killer Parties, in a separate objection, related that the
Debtors' motion must be denied to end the pretension that they are
capable of confirming a viable plan of reorganization.
The Hunter Killer Parties, Hunter consists of Neal H. Moritz, Neal
H. Moritz, Inc., George Wallace, Donald Keith, and Arne L. Schmidt,
Inc., are represented by:
Michael S. Elkin, Esq.
Carrie V. Hardman, Esq.
WINSTON & STRAWN LLP
200 Park Avenue
New York, NY 10166
Tel: (212) 294-6700
Fax: (212) 294-4700
E-mails: melkin@winston.com
chardman@winston.com
About Relativity
Relativity -- http://relativitymedia.com/-- is a next-generation
global media company engaged in multiple aspects of content
production and distribution, including movies, television, sports,
digital and music. More than just a collection of
entertainment-related businesses, Relativity is a content engine
with the ability to leverage each of these business units,
independently and together, to create content across all mediums,
giving consumers what they want, when they want it.
Relativity Studios, the Company's largest division, has produced,
distributed or structured financing for more than 200 motion
pictures, generating more than $17 billion in worldwide box-office
revenue and earning 60 Oscar nominations. Relativity's films
include Oculus, Safe Haven, Act of Valor, Immortals, Limitless, and
The Fighter.
Relativity Media LLC and its affiliates, including Relativity
Fashion, LLC, sought protection under Chapter 11 of the Bankruptcy
Code on July 30, 2015 (Bankr. S.D.N.Y., Case No. 15-11989). The
case is assigned to Judge Michael E. Wiles.
The Debtors are represented by Craig A. Wolfe, Esq., Malani J.
Cademartori, Esq., and Blanka K. Wolfe, Esq., at Sheppard Mullin
Richter & Hampton LLP, in New York; and Richard L. Wynne, Esq.,
Bennett L. Spiegel, Esq., and Lori Sinanyan, Esq., at Jones Day, in
New York.
Brian Kushner of FTI Consulting, Inc., serves as chief
restructuring officer and crisis and turnaround manager. Luke
Schaeffer of FTI Consulting, Inc., serves as deputy CRO.
Blackstone Advisory Partners L.P. serves as the Debtors' investment
banker. The team is led by Timothy Coleman, Senior Managing
Director, CJ Brown, Senior Managing Director, Paul Sheaffer, Vice
President, and Joseph Goldschmid, Associate.
The Debtors' noticing and claims agent is Donlin, Recano & Company,
Inc.
* * *
An investor group composed of Anchorage Capital Group, L.L.C.,
Falcon Investment Advisors, LLC and Luxor Capital Group, LP on Oct.
21 completed its purchase of the assets of Relativity Television.
Macquarie Investments US Inc. withdrew its motion for adequate
protection or relief from the automatic stay after the Debtors
opted to only sell their TV business instead of substantially all
assets.
After selling their TV business, the Debtors say that they intend
to formulate a plan to restructure their business around their
remaining assets, including the Debtors' motion picture assets.
SABINE OIL: Creditors Have Until Dec. 22 to File Proofs of Claim
----------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York
established these dates in relation to the Chapter 11 cases of
Sabine Oil & Gas Corporation, et al.:
General Claims Bar Date: Dec. 22, 2015, at 5:00 p.m.
Governmental Bar Date: Jan. 11, 2016, at 5:00 p.m.
The deadlines are for claims against the Debtors which arose before
July 15, 2015.
Proofs of claim must be submitted to Prime Clerk LLC, the Debtors'
notice and claims agent, to these addresses:
If delivered by first-class U.S. mail or overnight mail:
Sabine Oil & Gas Corporation
Claims Processing Center
c/o Prime Clerk LLC
830 Third Avenue, 3rd Floor
New York, NY 10022
If delivered by hand delivery:
Sabine Oil & Gas Corporation
Claims Processing Center
c/o Prime Clerk LLC
830 Third Avenue, 3rd Floor
New York, NY 10022
or
The United States Bankruptcy Court for the Southern
District of New York
One Bowling Green, Room 534
New York, NY 10004
About Sabine Oil & Gas
Sabine Oil & Gas Corp. is an independent energy company engaged in
the acquisition, production, exploration, and development of
onshore oil and natural gas properties in the U.S. The Company's
current operations are principally located in the Cotton Valley
Sand and Haynesville Shale in East Texas, the Eagle Ford Shale in
South Texas, the Granite Wash in the Texas Panhandle, and the North
Louisiana Haynesville. The Company operates, or has joint working
interests in, approximately 2,100 oil and gas production sites
(approximately 1,800 operating and approximately 315 non-operating)
and has approximately 165 full-time employees.
Sabine Oil and its affiliated entities sought Chapter 11 protection
(Bankr. S.D.N.Y. Lead Case No. 15-11835) in Manhattan on July 15,
2015.
The Debtors have engaged Kirkland & Ellis LLP and Kirkland & Ellis
International LLP, as counsel; Lazard Freres & Co. LLC, as
investment banker and Prime Clerk LLC as notice, claims and
balloting agent. The Debtors also tapped Zolfo Cooper Management,
LLC, to provide Jonathan A. Mitchell as CRO and other additional
personnel.
The U.S. Trustee for Region 2 appointed five creditors to serve on
the official committee of unsecured creditors. The Committee is
represented by Mark R. Somerstein, Esq., Keith H. Wofford, Esq.,
and D. Ross Martin, Esq., at Ropes & Gray LLP as their counsel.
The Committee is also hiring Blackstone Advisory Partners L.P. as
investment banker; and Berkeley Research Group, LLC as financial
advisor.
SABINE OIL: Has Until Feb. 10 to Decide on Unexpired Leases
-----------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York
extended Sabine Oil & Gas Corporation, et al.'s time to assume or
reject unexpired leases of nonresidential real property until Feb.
10, 2016.
As reported by The Troubled Company Reporter on Nov. 17, 2015, the
Debtors told the Court that while they are actively engaged in a
strategic review of the Unexpired Leases, the Debtors have not
completed their review nor are they in a position to make any
determinations regarding whether to assume or reject the Unexpired
Leases by the Nov. 12, 2015 deadline. To provide them with
adequate time to complete their review and make an informed
determination regarding assumption or rejection of the Unexpired
Leases, the Debtors seek extension of the lease decision period.
About Sabine Oil & Gas
Sabine Oil & Gas Corp. is an independent energy company engaged in
the acquisition, production, exploration, and development of
onshore oil and natural gas properties in the U.S. The Company's
current operations are principally located in the Cotton Valley
Sand and Haynesville Shale in East Texas, the Eagle Ford Shale in
South Texas, the Granite Wash in the Texas Panhandle, and the
North
Louisiana Haynesville. The Company operates, or has joint working
interests in, approximately 2,100 oil and gas production sites
(approximately 1,800 operating and approximately 315
non-operating)
and has approximately 165 full-time employees.
Sabine Oil and its affiliated entities sought Chapter 11
protection
(Bankr. S.D.N.Y. Lead Case No. 15-11835) in Manhattan on July 15,
2015.
The Debtors have engaged Kirkland & Ellis LLP and Kirkland & Ellis
International LLP, as counsel; Lazard Freres & Co. LLC, as
investment banker and Prime Clerk LLC as notice, claims and
balloting agent. The Debtors also tapped Zolfo Cooper Management,
LLC, to provide Jonathan A. Mitchell as CRO and other additional
personnel.
The U.S. Trustee for Region 2 appointed five creditors to serve on
the official committee of unsecured creditors. The Committee is
represented by Mark R. Somerstein, Esq., Keith H. Wofford, Esq.,
and D. Ross Martin, Esq., at Ropes & Gray LLP as their counsel.
The Committee is also hiring Blackstone Advisory Partners L.P. as
investment banker; and Berkeley Research Group, LLC as financial
advisor.
SAMSON RESOURCES: Judge Denies Instant Bonus for Resigning CEO
--------------------------------------------------------------
Matt Chiappardi at Bankruptcy Law360 reported that a Delaware
bankruptcy judge on Nov. 16, 2015, would not allow Samson Resources
Corp. to immediately pay its resigning CEO a $760,000 bonus,
rejecting arguments that employee morale would suffer without the
award, but did permit him an unsecured claim — full payment of
which is questionable as the case currently stands.
During a hearing in Wilmington, U.S. Bankruptcy Judge Christopher
S. Sontchi said he agreed the slated bonus had been earned by Randy
Limbacher reaching the required targets.
About Samson Resources
Samson Resources Corporation, et al., filed Chapter 11 bankruptcy
petitions (D. Del. Lead Case No. 15-11934) on Sept. 16, 2015.
Philip W. Cook signed the petition as executive vice president and
chief financial officer. The Debtors estimated assets and
liabilities of more than $1 billion.
Samson is an onshore oil and gas exploration and production
company
with interests in various oil and gas leases primarily located in
Colorado, Louisiana, North Dakota, Oklahoma, Texas, and Wyoming.
The Operating Companies operate, or have royalty or working
interests in, approximately 8,700 oil and gas production sites.
Samson was acquired by KKR and Crestview from Charles Schusterman
in December 2011 for approximately $7.2 billion. The investor
group provided approximately $4.1 billion in equity investments as
part of the purchase price.
Kirkland & Ellis LLP represents the Debtors as general counsel.
Klehr Harrison Harvey Branzburg LLP is the Debtors' local counsel.
Alvarez & Marsal LLC acts as the Debtors' financial advisor.
Blackstone Advisory Partners L.P. serves as the Debtors'
investment
banker. Garden City Group, LLC serves as claims and noticing
agent
to the Debtors.
Andrew Vara, acting U.S. trustee for Region 3, appointed three
creditors of Samson Resources Corp. and its affiliated debtors to
serve on the official committee of unsecured creditors.
SCHUPBACH INVESTMENTS: 10th Cir. Affirms Reversal on Lazzo's Fees
-----------------------------------------------------------------
The United States Court of Appeals for the Tenth Circuit affirmed
the decision of the Bankruptcy Appellate Panel, which reversed
portions of the bankruptcy court's final fee order on Mark J.
Lazzo's fee applications.
After confirming a liquidation plan for Schupbach Investments,
L.L.C., the bankruptcy court entered a final fee order approving
certain disputed fee applications filed by Schupbach Investment's
legal counsel, Mark J. Lazzo.
The order was appealed to the BAP by Rose Hill Bank, a creditor of
the estate, and Carl B. Davis, the trustee of the Schupbach
Investments Liquidation Trust. The BAP reversed those portions of
the bankruptcy court's order that (1) confirmed post facto approval
of Lazzo's employment, and allowed fees incurred prior to approval
of his employment, and (2) allowed postconfirmation fees.
On appeal, the Tenth Circuit agreed with the BAP's conclusion that
Mr. "Lazzo's inadvertent neglect in failing to timely file his
employment application is not an extraordinary circumstance," and
thus, the retroactive approval of Lazzo's employment would not be
appropriate.
The Tenth Circuit also affirmed the BAP's decision reversing the
bankruptcy court's determination allowing an award of
post-confirmation fees. The BAP had concluded that under the terms
of the Creditors' Plan and Confirmation Order, Schupbach
Investments' status as debtor-in-possession terminated upon
confirmation. The 10th Circuit then cited the Supreme Court,
holding that "when a debtor's status as debtor-in-possession
terminates, this also terminates an attorney's authorization under
Section 327 to provide service as an attorney for the
debtor-in-possession."
The case In re: SCHUPBACH INVESTMENTS, L.L.C., Debtor. MARK J.
LAZZO, P.A.; MARK J. LAZZO; SCHUPBACH INVESTMENTS, L.L.C.,
Appellants, v. ROSE HILL BANK; CARL B. DAVIS, Trustee of the
Schupbach Investments Liquidation Trust, Appellees, NO. 14-3277
(10th Cir.).
A full-text copy of the 10th Circuit's November 3, 2015 opinion is
available at http://is.gd/bWLl3Kfrom Leagle.com.
Appellants were represented by:
Mark J. Lazzo, Esq.
MARK J. LAZZO, P.A.
3500 N. Rock Road
Building 300, Suite B
Wichita, KS 67226
Tel: (316) 263-6895
Appellees were represented by:
J. Michael Morris, Esq.
KLENDA AUSTERMAN, LLC
1600 Epic Center 301 N Main
Wichita, KS 67202-4816
Tel: (316) 267-0331
Fax: (316) 267-0333
Email: jmmorris@klendalaw.com
About Schupbach Investments
Jonathan Isaac and Amy Marie Schupbach were engaged in the business
of buying, renovating, and renting or reselling homes in Wichita,
Kansas. They did business through Schupbach Investments LLC, which
filed for relief under Chapter 11 of the Bankruptcy Code (Bankr. D.
Kan. Case No. 11-11425) on May 16, 2011. Jonathan and Amy filed
for relief on July 16, 2011, under Chapter 13, but the case was
later converted to Chapter 11 (Case No. 11-13633).
Schupbach Investments' schedule A listed 165 parcels of real
property, 39 of which were mortgaged to Bank of Commerce & Trust
Company. The Bank filed a proof of claim for $748,748.72 against
the Schupbachs.
In March 2014, the Debtors filed a proposed Chapter 11 plan. The
bankruptcy court confirmed the Individual Plan on April 20, 2014.
SEANERGY MARITIME: Announces Delivery of 2 Capesize Vessels
-----------------------------------------------------------
Seanergy Maritime Holdings Corp. announced that it took delivery of
a 171,314 dwt Capesize dry bulk vessel, which has been renamed to
M/V Gloriuship, and a 170,018 dwt Capesize dry bulk vessel, which
has been renamed to M/V Squireship. Both the M/V Gloriuship, which
was built in 2004 by Hyundai HI, and the M/V Squireship, which was
built in 2010 by Sungdong SB, will be employed in the spot market.
The acquisition cost of the M/V Gloriuship and the M/V Squireship
has been funded by senior secured loan agreements with
international financial institutions and by a funding arrangement
with the Company's sponsor.
As previously announced, the M/V Gloriuship and the M/V Squireship
are the fifth and the sixth, respectively, of seven modern
secondhand dry bulk vessels that the Company has agreed to acquire
for a gross purchase price of approximately $183 million. The
acquisition of the remaining Capesize vessel is expected to be
completed by Nov. 30, 2015.
About Seanergy
Athens, Greece-based Seanergy Maritime Holdings Corp. is an
international company providing worldwide seaborne transportation
of dry bulk commodities. The Company owns and operates a fleet
of seven dry bulk vessels that consists of three Handysize, two
Supramax and two Panamax vessels. Its fleet carries a variety of
dry bulk commodities, including coal, iron ore, and grains, as
well as bauxite, phosphate, fertilizer and steel products.
Ernst & Young (Hellas) Certified Auditors-Accountants S.A., in
Athens, Greece, issued a "going concern" qualification on the
consolidated financial statements for the year ended Dec. 31, 2014,
citing that following the disposal of the Company's entire fleet in
early 2014 in the context of its restructuring plan, the Company
was unable to generate sufficient cash flow to meet its obligations
and sustain its continuing operations that raise substantial doubt
about the Company's ability to continue as a going concern.
The Company disclosed net income of $80.3 million on $2.01 million
of net vessel revenue for the year ended Dec. 31, 2014, compared
with net income of $10.9 million on $23.1 million of net vessel
revenue for the year ended Dec. 31, 2013.
As of June 30, 2015, the Company had $19.6 million in total
assets, $10.2 million in total liabilities, and $9.42 million in
stockholders' equity.
SEBRING SOFTWARE: Retainer Agreement with Bailey Glasser Approved
-----------------------------------------------------------------
BankruptcyData reported that the U.S. Bankruptcy Court approved
Sebring Software's motion to enter into a mediation confidentiality
and retainer agreement with Thomas B. Bennett of Bailey Glasser.
As reported, "On Sept. 29, 2015, Dr. Alan D. Shoopak and Dr. Dennis
J.L. Buchman, filed their Amended Emergency Motion to Void Certain
Postpetition Agreement and to Prohibit Debtors from Exercising
Certain Alleged Contract/Property Rights. In turn, the Debtors
filed their Expedited Motion to Compel Negotiation, Mediation, and
Arbitration.
The Motion to Void and Motion to Compel relate to disputes arising
out of a series of agreements entitled 'Dental Practice Business
Management Agreement' and 'Continuation Agreement and Equity
Pledge.' The parties have agreed to a mediation of their disputes,
and have agreed to use the services of Thomas B. Bennett, Esq. of
Bailey Glasser."
Clearwater, Florida-based Sebring Management FL, LLC, and its three
affiliates sought protection under Chapter 11 of the Bankruptcy
Code on Aug. 23, 2015 (Bankr. M.D. Fla., Case No. 15-08589). The
Debtors' counsel is Jay B Verona, Esq., at Shumaker, Loop &
Kendrick, LLP, in Tampa, Florida.
SIERRA HAMILTON: Moody's Lowers CFR to Caa3, Outlook Negative
-------------------------------------------------------------
Moody's Investors Service downgraded Sierra Hamilton, LLC's
Corporate Family Rating to Caa3 from Caa1 and its Probability of
Default Rating to Caa3-PD from Caa1-PD. At the same time, Moody's
downgraded Sierra Hamilton's $110 million senior secured notes to
Caa3 from Caa1. Moody's withdrew the SGL rating. The rating
outlook is negative.
Ratings downgraded:
Issuer: Sierra Hamilton LLC
Corporate Family Rating to Caa3 from Caa1
Probability of Default Rating to Caa3-PD from Caa1-PD
Senior Secured notes due 2018 to Caa3 (LGD4) from Caa1 (LGD4)
Rating withdrawn:
SGL-3 Speculative Grade Liquidity Rating
The rating outlook is negative.
"The downgrade reflects Moody's expectations of sustained weak
activity levels for Sierra Hamilton's business that will make
covering its interest payments very challenging by the latter half
of 2016," said Moody's Analyst Morris Borenstein. "The company's
debt was issued in a market with a much higher level of rig
activity, having fallen more than 50% since its peak over a year
ago. The capital structure will be unsustainable absent a sharp
recovery."
RATINGS RATIONALE
Sierra Hamilton's Caa3 CFR reflects its very weak liquidity
position, given Moody's expectation of close to $21 million in
interest payments through the end of 2016 and only about $6 million
of EBITDA through this period. The CFR also reflects the company's
small size, product and customer concentration, and high debt level
given its exposure to the cyclical exploration and production (E&P)
and oilfield services sectors. EBITDA declines in the second half
of 2015 will exceed 75% and Moody's believes that low business
activity levels will be maintained in 2016 given the significant
decline in drilling rigs since the time of the initial rating. The
rating considers that EBITDA to interest will remain below 1 times
for all of 2016 (negative on an EBIT basis) making interest
payments in 2016 a burdening strain on liquidity.
The rating incorporates Sierra Hamilton's variable cost base with
gross margins held relatively constant with revenue declines given
its 85-15 split with its contracted engineers. Sierra Hamilton
works mostly with E&P companies that are trying to manage fixed
operating costs in a low oil price environment and Moody's expect
them to continue to exert pricing pressure on the company in 2016,
consistent with other oilfield services companies. The customer
base is comprised of strong investment grade customers such as
Devon Energy Corporation (Baa1 stable), Continental Resources (Baa3
stable) and EOG (A3 stable), but all of these companies have
meaningfully reduced their capital spending in 2015.
The company's liquidity profile is weak. The company will burn
cash over the next 12 to 15 months making its $7 million
semi-annual interest payments difficult to meet beyond the second
half of 2016. The undrawn $15 million revolver serves as a
liquidity buffer, but its effective availability will be capped at
$12 million since there is a springing fixed charge covenant in the
credit agreement when availability falls below 20%, which the
company cannot comply with. Substantially all of the company's
assets are pledged as collateral for the secured debts and are
largely intangible, leaving little alternative sources of
liquidity. The company has no debt maturities through 2018.
The negative rating outlook reflects Moody's expectation that
demand for personnel providing onsite supervision and other
services to E&P companies will remain at depressed levels in 2016
resulting in modest EBITDA generation and weak liquidity.
Expectation of an inability to meet interest payments or a greater
than anticipated cash burn could lead to further rating downgrades.
A ratings upgrade is unlikely until EBITDA coverage of interest
coverage is above 1 times and liquidity improves to better weather
the cyclicality of the business.
The principal methodology used in these ratings was Global Oilfield
Services Industry Rating Methodology published in December 2014.
Sierra Hamilton primarily provides on-site supervision personnel to
oil & gas companies engaged in exploration, drilling, completion
and production. The company is 73% privately owned by Corinthian
Capital Group, LLC and the balance primarily held by members of
management.
SOUTHERN REGIONAL: Court Extends Exclusive Right to File Plan
-------------------------------------------------------------
Southern Regional Health System Inc. obtained a court order
extending the period of time during which it alone holds the right
to file a Chapter 11 plan.
The order, issued by U.S. Bankruptcy Judge Wendy Hagenau, extended
the company's exclusive right to propose a plan to May 25, 2016,
and solicit votes from creditors to July 25, 2016.
The extension would prevent others from filing rival plans in court
and maintain the company's control over its bankruptcy case.
About Southern Regional Health System
Southern Regional Health System, Inc., owns the Southern Regional
Medical Center, a 331-licensed bed full-service hospital located in
Riverdale, Georgia. Managed by Emory Healthcare, Inc., the
hospital serves residents throughout the region south of Atlanta.
As a leader in neurologic, heart & vascular, bariatric, and women's
healthcare services, Southern Regional's medical staff is comprise
of more than 480 physicians that blend their passion for healing
with advanced technology to offer the latest procedures and
treatments.
Southern Regional and its subsidiaries sought Chapter 11 protection
(Bankr. N.D. Ga. Case No. 15-64266) on July 30, 2015, in Atlanta,
Georgia. The cases are assigned to Judge Wendy L. Hagenau.
Southern Regional estimated $50 million to $100 million in assets
and $100 million to $500 million in debt. The Debtors' secured
creditors are Gemino Healthcare Finance, LLC, and U.S. Foods, Inc.
Gemino claims to be owed in excess of $10 million, while U.S. Foods
has a $60,000 claim.
The Debtors tapped Scroggins & Williamson, P.C., as bankruptcy
attorneys, Nelson Mulins Riley & Scarborough LLP, as outside
general counsel, and Kurtzman Carson Consultants LLC as claims and
balloting agent.
The Debtors appointed seven creditors to serve on the official
committee of unsecured creditors. The unsecured creditors are
Morrison Management Specialists, Xanitos, Med Assets, First
Financial Investment Fund V LLC, Complete RX, Coventry and 3M
Health Information Systems. The committee is represented by Pepper
Hamilton LLP.
SOUTHERN REGIONAL: Waller Represents Passport Health & RBHS
-----------------------------------------------------------
The law firm of Waller Lansden Dortch & Davis, LLP, pursuant to
Rule 2019 of the Federal Rules of Bankruptcy Procedure, filed in
the Chapter 11 cases of Southern Regional Health System, Inc., et
al., a verified statement disclosing that it represents Passport
Health Communications, Inc., and Riverwoods Behavioral Health
System, LLC.
Passport and RBHS have general unsecured claims and postpetition
administrative claims for services provided to the Debtors. RBHS
is also a tenant under a lease with the Debtors.
The firm can be reached at:
WALLER LANDSDEN DORTCH & DAVIS LLP
Brian Malcom, Esq.
1901 Sixth Avenue North, Suite 1400
Birmingham, AL 35203
Tel: (205) 226-5706
Fax: (205) 214-8787
E-mail: brian.malcom@wallerlaw.com
About Southern Regional Health System
Southern Regional Health System, Inc., owns the Southern Regional
Medical Center, a 331-licensed bed full-service hospital located in
Riverdale, Georgia. Managed by Emory Healthcare, Inc., the
hospital serves residents throughout the region south of Atlanta.
As a leader in neurologic, heart & vascular, bariatric, and women's
healthcare services, Southern Regional's medical staff is comprise
of more than 480 physicians that blend their passion for healing
with advanced technology to offer the latest procedures and
treatments.
Southern Regional and its subsidiaries sought Chapter 11 protection
(Bankr. N.D. Ga. Case No. 15-64266) on July 30, 2015, in Atlanta,
Georgia. The cases are assigned to Judge Wendy L. Hagenau.
Southern Regional estimated $50 million to $100 million in assets
and $100 million to $500 million in debt. The Debtors' secured
creditors are Gemino Healthcare Finance, LLC, and U.S. Foods, Inc.
Gemino claims to be owed in excess of $10 million, while U.S. Foods
has a $60,000 claim.
The Debtors tapped Scroggins & Williamson, P.C., as bankruptcy
attorneys, Nelson Mulins Riley & Scarborough LLP, as outside
general counsel, and Kurtzman Carson Consultants LLC as claims
and balloting agent.
The Official Committee of Unsecured Creditors tapped Lamberth,
Cifelli, Ellis & Nason, P.A., and Pepper Hamilton, LLP, as
attorneys.
* * *
Prime Healthcare has submitted a letter of intent to purchase most
of Southern Regional's assets, and would operate the hospital after
the proposed sale. Prime has agreed to provide the Debtors with
$9.2 million of DIP financing.
SOUTHERN REGIONAL: Wiles & Wiles Represents Spivey Entities
-----------------------------------------------------------
The law firm of Wiles & Wiles, LLP, pursuant to Rule 2019 of the
Federal Rules of Bankruptcy Procedure, filed a verified statement
disclosing that it is representing CHP Spivey I-Jonesboro GA MOB
Owner, LLC, and CHP Spivey II-Jonesboro GA MOB Owner, LLC in the
Chapter 11 cases of Southern Regional Health System, Inc., et al.
The Spivey entities have general unsecured claims and prepetition
expense claims for services provided to the Debtors in connection
with certain non-residential real property leases under which the
Debtors are lessees and the Spivey entities are lessors.
The firm can be reached at:
Victor W. Newmark, Esq.
WILES & WILES, LLP
800 Kennesaw Avenue, Suite 400
Marietta, GA 30060-7946
Tel: (770) 426-4619
Fax: (770) 426-4846
E-mail: vnewmark@evict.net
About Southern Regional Health System
Southern Regional Health System, Inc., owns the Southern Regional
Medical Center, a 331-licensed bed full-service hospital located in
Riverdale, Georgia. Managed by Emory Healthcare, Inc., the
hospital serves residents throughout the region south of Atlanta.
As a leader in neurologic, heart & vascular, bariatric, and women's
healthcare services, Southern Regional's medical staff is comprise
of more than 480 physicians that blend their passion for healing
with advanced technology to offer the latest procedures and
treatments.
Southern Regional and its subsidiaries sought Chapter 11 protection
(Bankr. N.D. Ga. Case No. 15-64266) on July 30, 2015, in Atlanta,
Georgia. The cases are assigned to Judge Wendy L. Hagenau.
Southern Regional estimated $50 million to $100 million in assets
and $100 million to $500 million in debt. The Debtors' secured
creditors are Gemino Healthcare Finance, LLC, and U.S. Foods, Inc.
Gemino claims to be owed in excess of $10 million, while U.S. Foods
has a $60,000 claim.
The Debtors tapped Scroggins & Williamson, P.C., as bankruptcy
attorneys, Nelson Mulins Riley & Scarborough LLP, as outside
general counsel, and Kurtzman Carson Consultants LLC as claims
and balloting agent.
The Official Committee of Unsecured Creditors tapped Lamberth,
Cifelli, Ellis & Nason, P.A., and Pepper Hamilton, LLP, as
attorneys.
* * *
Prime Healthcare has submitted a letter of intent to purchase most
of Southern Regional's assets, and would operate the hospital after
the proposed sale. Prime has agreed to provide the Debtors with
$9.2 million of DIP financing.
SPECIALTY PRODUCTS: Has Until Jan. 22, 2016 to Object to Claims
---------------------------------------------------------------
U.S. Bankruptcy Judge Laurie Selber Silverstein has given Specialty
Products Holding Corp. until Jan. 22, 2016, to object to all claims
other than asbestos-related personal injury claims.
About Specialty Products
Cleveland, Ohio-based Specialty Products Holdings Corp., aka RPM,
Inc., is a wholly owned subsidiary of RPM International Inc. The
Company is the holding company parent of Bondex International,
Inc., and the direct or indirect parent of certain additional
domestic and foreign subsidiaries. The Company claims to be a
leading manufacturer, distributor and seller of various specialty
chemical product lines, including exterior insulating finishing
systems, powder coatings, fluorescent colorants and pigments,
cleaning and protection products, fuel additives, wood treatments
and coatings and sealants, in both the industrial and consumer
markets.
Specialty Products and Bondex International, Inc., ("Initial
Debtors") filed for Chapter 11 bankruptcy protection (Bankr. D.
Del. Case No. 10-11780 and 10-11779) on May 31, 2010. Specialty
Products estimated its assets and debts at $100 million to $500
million.
The Debtors tapped Jones Day as bankruptcy counsel; Richards Layton
& Finger, as co-counsel; and Logan and Company as claims and notice
agent. The Official Committee of Asbestos PI Claimants tapped
Montgomery, Mccracken, Walker & Rhoads, LLP in Wilmington,
Delaware, as counsel. The Future Claimants' Representative tapped
Young Conaway Stargatt & Taylor LLP, as attorneys.
On Aug. 31, 2014, Republic Powdered Metals, Inc., and affiliate
NMBFiL, Inc. -- the New Debtors -- sought Chapter 11 protection
(Bankr. D. Del. Case No. 14-12028). The New Debtors are indirect
subsidiaries of Bondex International and affiliates of the Initial
Debtors. Republic Powdered Metal is a leader in the roof coating
and restoration industry which provides exclusive products for roof
and wall restoration, including an extensive line of roof
coatings.
NMBFiL is formerly known as Bondo Corporation. It is a manufacturer
of auto body repair products for the automotive aftermarket and
various other professional and consumer applications. In November
2007, NMBFiL sold substantially all of its assets and no longer has
business operation. Republic estimated assets of $10 million to
$50 million and debt of less than $10 million as of the bankruptcy
filing.
The New Debtors were granted, on Sept. 3, 2014, joint
administration of their Chapter 11 cases for procedural purposes
only, with the chapter 11 cases of Specialty Products and Bondex
International.
* * *
Competing bankruptcy exit plans have been filed by the Initial
Debtors, on one hand, and the Official Committee of Unsecured
Creditors and the Future Claimants' Representative on the other.
The Debtors' First Amended Joint Plan of Reorganization and the
explanatory Disclosure Statement, dated Nov. 18, 2013, provides for
an asbestos trust to be established and funded with cash to pay
present and future asbestos-related claims. The trust will be
funded by secured notes, issued by the Debtors and their ultimate
parent, RPM International Inc. ("International"), and the amounts
and terms of the notes will, with one exception, be determined by
the final outcome or settlement of the litigation that will
determine the asbestos claimants' rights in the chapter 11 cases.
The one exception is that the notes will provide for an aggregate
initial nonrefundable payment of $125 million to the asbestos trust
irrespective of the outcome of any litigation. In short, the
Debtors and International have committed to pay to asbestos
claimants the maximum amount to which they are entitled based on
the applicable judgments or rulings in the litigation that will
determine the extent of the claimants' rights in the chapter 11
cases, and to make comparable payments to other similarly situated
creditors.
The PI Committee and the FCR's Third Amended Plan, filed Oct. 15,
2013, provides that: (i) SPHC will be separated from non-Debtor
direct or indirect parent Bondex International; (ii) Reorganized
SPHC will be managed and/or sold for the benefit of holders of all
Claims that are not paid in Cash, subordinated, cancelled or
otherwise treated pursuant to the Plan; (iii) all of SPHC's causes
of action will survive; (iv) Asbestos PI Trust Claims against SPHC
will be channeled to an Asbestos PI Trust; and (v) current SPHC
equity interests will be canceled, annulled, and extinguished.
On May 20, 2013, the Bankruptcy Court entered an order estimating
the amount of the Debtors' asbestos liabilities, and a related
memorandum opinion in support of the estimation order. The
Bankruptcy Court estimated the current and future asbestos claims
associated with Bondex International, Inc. and Specialty Products
Holding at approximately $1.17 billion. The estimation hearing
represents one step in the legal process in helping to determine
the amount of potential funding for a 524(g) asbestos trust.
TARGET CANADA: RioCan Enters Into Settlement Agreement with Parent
------------------------------------------------------------------
RioCan Real Estate Investment Trust on Nov. 23 disclosed that, on
its behalf and on behalf of its
co-owners, it has entered into a binding agreement ("Settlement
Agreement") with Target Corp., the US parent of Target Canada Co.
("Target Canada"), concluding terms of settlement relating to the
eighteen leases that were disclaimed pursuant to the Companies'
Creditors Arrangement Act ("CCAA"). Target Corp. had entered into
indemnity agreements (the "Indemnities") with certain RioCan
entities (including co-owned entities) and whereby Target Corp.
indemnified those entities for, among other matters, the
obligations of Target Canada Co. pursuant to the various leases.
In consideration of a net payment of $132 million to RioCan, of
which approximately $92 million belongs to RioCan with the
remainder to be distributed to its various co-owners, the relevant
RioCan entities and their partners have agreed to release Target
Corp. from the Indemnities relating to the Subject Leases. The
relevant RioCan entities have also directed that any distributions
from Target Canada to be made to such entities, insofar as they
relate to the Subject Leases, will be paid to Target Corp.
RioCan has received payment in full of the settlement amount.
The proceeds of the settlement will be utilized by RioCan and its
co-owners to mitigate losses caused by Target Canada's departure
and disclaimer of the Subject Leases.
Leasing Update:
At the time of Target Canada's announcement that it would close all
of its Canadian stores, RioCan had 26 locations that were under
lease to Target Canada. Through the CCAA, leases at seven
locations were assigned to other tenants (six locations to Lowe's
and one to Canadian Tire). RioCan's leasing team continues to work
diligently negotiating with potential tenants to backfill the
premises at the remaining nineteen properties with the objective to
utilize the space optimally so as to improve the overall shopping
centre and increase revenues in the most efficient, expedient, and
effective manner possible.
To date, RioCan has made great progress, and there is strong
momentum behind the Trust's leasing efforts. It is anticipated
that the backfilled units will begin to come on line in mid-2016,
and that most of the work that has currently been identified will
be completed by the end of 2017.
Once complete, the centres will benefit from increased cashflow, in
part due to higher rental revenue, and from higher recoveries as
the new leases are more market based, providing for a full
pro-rata share of operating cost recoveries, utilities, and realty
taxes, which were capped under the former Target Canada leases.
Traffic to the centers is expected to be higher, which should
result in greater sales, and stronger tenants. Furthermore, the
new cashflow stream will be more diverse, have longer remaining
terms, and will have a stronger growth profile than the previous
Target Canada leases, which were assumed from Zellers and had
little, if any, rent growth through the remaining lease terms and
renewal options. As a result, management is very confident that
overall RioCan will end up with a stronger portfolio that will
generate a more secure, diverse, and faster growing cashflow
stream.
To date, RioCan has completed 14 leases totalling approximately
448,000 square feet ("sf.") at 100% (344,000 sf. at RioCan's
interest). These 14 leases will, at RioCan's interest, generate
$5.2 million of base rental revenue per year.
RioCan has two conditional offers to lease space totalling 50,000
sf. at RioCan's interest and at 100%. These conditional leases are
expected to generate $0.6 million at RioCan's interest of base
rental revenue per year.
In addition, RioCan is in advanced stages of negotiation for
another 16 leases totalling approximately 670,000 sf. at 100%
(538,000 sf. at RioCan's interest) that are expected to be
finalized by the end of the first quarter of 2016. These 16 leases
are expected to generate $4.5 million at RioCan's interest of base
rental revenue per year.
Collectively, these 32 leases represent approximately $10.3 million
at RioCan's interest, or 94% of the total rental revenue lost
through Target's departure. The expected cost to complete the
redevelopment work related to the 32 leases is currently estimated
to be approximately $110 million (approximately $75 million at
RioCan's interest). The overall redevelopment costs will evolve as
additional tenants are secured, development plans are completed and
construction costs finalized.
There is 568,600 sf. at 100% (406,000 sf. at RioCan's interest)
that is currently being marketed, but is not presently the subject
of active lease negotiations where redevelopment plans are being
prepared.
The area that will be converted for landlord purposes including
common area, loading docks and other uses represents 186,000 sf. at
100% (156,000 sf. at RioCan's interest). The remaining 195,500 sf.
at 100% and RioCan's interest represents space for potential
redevelopment, where plans have not yet been finalized.
The lease agreements are in various stages of negotiations and
there can be no assurance as to how many of the leases agreement
will be completed or their timelines.
Property Level Highlights:
RioCan's progress backfilling the spaces previously occupied by
Target Canada varies from property to property. The following
summaries highlight the progress that has been made to date in 13
of RioCan's shopping centers. Where not otherwise stated, all
tenant spaces described below are at 100% interest.
Single Tenant Solutions:
At RioCan's Stockyards property in Toronto, Ontario, RioCan has
entered into a lease agreement with Nations Fresh Foods to occupy
the entire 153,450 sf. (76,725 sf. at RioCan's interest) that was
previously occupied by Target Canada generating roughly the same
base rental revenue that was generated by Target Canada. Nations
Fresh Foods is part of an Ontario based full service grocery chain
focused on providing a multi-ethnic fresh food shopping experience
through its Oceans Fresh Food Market and Nations Fresh Foods
banners.
Currently, RioCan is in advanced stages of lease negotiations
involving various single tenant solutions totalling 455,663 sf. at
100% (397,880 sf. at RioCan's interest), which we expect will be
completed over the next several months at Millcroft Shopping
Centre, Orillia Square Mall, RioCan Niagara Falls, and RioCan
Scarborough Centre.
Burlington Mall (RioCan ownership - 50%)
At RioCan's Burlington Mall property in Burlington, Ontario, Target
Canada previously occupied approximately 121,500 sf. paying
$4.17/sf. in base rent (approximately $0.5 million at 100%, $0.3
million at RioCan's interest). The former Target box will be
reconfigured to accommodate four large format tenants of
approximately 22,000 sf. each, and additional small shop space
aggregating approximately 10,000 sf. RioCan currently has a
commitment from Denninger's Fresh Foods of the World, a specialty
food retailer (23,000 sf.), and negotiations are substantially
complete with three national tenants for the remaining large format
premises. As a result of the redevelopment, approximately 23,000
sf. of the former Target Canada premises will be converted to a new
interior corridor, including a new mall entrance, landlord storage
or will be demolished.
The Trust expects to file for site plan approvals in late 2015 and
commence construction on the redevelopment in 2016 with tenants
taking possession of the space in 2017. Upon completion, the
redeveloped space is expected to generate base rental revenue of
$20.72/sf. on the reconfigured space generating approximately $2.0
million annually at 100% ($1.0 million at RioCan's interest).
Charlottetown Mall (RioCan ownership - 50%)
At RioCan's Charlottetown Mall in Charlottetown, Prince Edward
Island, Target Canada previously occupied approximately 107,800 sf.
paying $4.20/sf. in base rent (approximately $0.5 million at 100%,
$0.2 million at RioCan's interest). The former Target box will be
reconfigured to accommodate four large format tenants ranging in
size from approximately 20,000 sf. to 30,000 sf. each, as well as
two small shop tenants totalling approximately 5,000 sf. each.
Negotiations with three national tenants are at an advanced stage.
Approximately 7,000 sf. of the former Target Canada premises will
be converted to landlord storage or demolished. Construction is
expected to begin in the fourth quarter of 2015, with tenants
taking possession and opening in the second half of 2016. Upon
completion, the redeveloped space is expected to generate base
rental revenue of $12.46/sf. generating approximately $1.3 million
annually at 100% ($0.6 million at RioCan's interest).
Lawrence Square (RioCan ownership - 100%)
At its Lawrence Square property in Toronto, Ontario, RioCan has
successfully backfilled most of the 89,430 sf. that was leased to
Target Canada. Target Canada was paying $7.50/sf. (approximately
$0.7 million). The space will be reconfigured to accommodate four
large format tenants ranging in size from 12,000 sf. to 28,000 sf.
RioCan has successfully leased 63,000 sf. to HomeSense (23,000
sf.), Marshalls (28,000 sf.), and PetSmart (12,000 sf.). Work
began at the site in the third quarter of 2015 and RioCan expects
to complete the redevelopment and expects the new tenants will take
possession of the spaces in the first half of 2016. The remaining
unit of approximately 15,000 sf. is being marketed. Upon
completion, approximately 12,000 sf. will be used for common area
uses.
Upon completion, the redeveloped space is expected to generate base
rental revenue of $19.56/sf. generating approximately $1.5 million
annually.
Trinity Common Brampton (RioCan ownership - 100%)
At Trinity Common Brampton, in Brampton, Ontario, Target Canada
previously occupied 118,200 sf. paying $7.50/sf. in base rent
(approximately $0.9 million). The former Target box will be
reconfigured to accommodate three new large format tenants. RioCan
currently has commitments from DSW (20,000 sf.) and Michaels
(23,000 sf.) and negotiations are substantially complete with one
national tenant for the remaining unit (25,000 sf.).
RioCan expects to file for site plan approvals in the fourth
quarter of 2015, and commence construction in mid-2016, with
tenants taking possession in early 2017. As a result of the
redevelopment, approximately 50,000 sf. will be removed or
reconfigured to create the new tenant facades and loading areas.
Upon completion, the redeveloped space is expected to generate base
rental revenue of $20.15/sf. generating approximately $1.4 million
annually.
Shoppers World Brampton (RioCan ownership - 100%)
At Shoppers World Brampton, in Brampton, Ontario, Target Canada
previously occupied 121,490 sf. paying $4.18/sf. in base rent
(approximately $0.5 million). The former Target box (121,490 sf.)
will be reconfigured to accommodate four large format tenants
ranging in size from 15,000 sf. to 38,000 sf. and additional small
shop space aggregating approximately 6,000 sf. RioCan currently has
a commitment from GoodLife Fitness (38,000 sf.) and negotiations
are in various stages with three national tenants for the balance
of the large format premises.
Construction is anticipated to start in mid-2016 with tenants
taking possession a year later. As a result of the redevelopment,
approximately 13,000 sf. of the former Target Canada premises will
be converted to common area. Upon completion, the redeveloped
space is expected to generate base rental revenue of $9.77/sf. or
approximately $1.1 annually.
RioCan Durham Centre (RioCan ownership - 100%)
At RioCan's Durham Centre in the Greater Toronto Area market of
Ajax, Ontario, Target Canada previously occupied 121,280 sf. paying
$8.11/sf. of base rent (approximately $1.0 million). The former
Target box (121,280 sf.) will be reconfigured to accommodate three
new large format tenants ranging in size from 20,000 sf. to 23,000
sf. and additional small shop space aggregating approximately 5,000
sf. RioCan currently has commitments from Michaels (23,000 sf.)
and DSW (20,000 sf.) with negotiations in the final stages for
another 23,000 sf. with a national retailer.
Construction is expected to commence in the second quarter of 2016,
with tenants taking possession in the early 2017. As a result of
the redevelopment, approximately 50,000 sf. of the former Target
Canada premises will be demolished. Upon completion the
redeveloped space is expected to generate base rental revenue of
$18.68/sf. generating approximately $1.3 million annually.
Gates of Fergus (RioCan ownership - 50%)
At RioCan's Gates of Fergus shopping centre in Fergus, Ontario,
Target Canada previously occupied 95,978 sf. paying $7.00/sf. of
base rent ($0.7 million at 100%, $0.4 million at RioCan's
interest). The former Target box will be reconfigured to
accommodate three large format tenants ranging from approximately
9,000 sf. to 24,000 sf. per unit. RioCan currently has commitments
from Dollarama (12,700 sf.) and Giant Tiger (20,000 sf.) and
negotiations are at an advanced stage for the remaining unit.
Construction has commenced on demising the space and we anticipate
tenants will take possession in the second quarter of 2016. As a
result of the redevelopment, approximately 30,000 sf. of the former
Target Canada premises will be converted to landlord storage or
demolished. Upon completion, the redeveloped space is expected to
generate base rental revenue of $10.92/sf. generating approximately
$0.7 million annually ($0.4 million at RioCan's interest).
South Hamilton Square (RioCan ownership - 100%)
At RioCan's South Hamilton Square, in Hamilton, Ontario, Target
Canada previously occupied 93,125 sf. paying $7.51/sf. of base rent
(approximately $0.7 million). The former Target box will be
reconfigured to accommodate three large format tenants ranging in
size from 15,000 sf. to approximately 40,000 sf. RioCan currently
has commitments from Fabricland (15,500 sf.) and Hamilton
Trampoline Club (36,500 sf.).
Construction is anticipated to start in the second quarter of 2016
with tenants taking possession in late 2016. Upon completion the
redeveloped space is expected to generate base rental revenue of
$12.46/sf. generating approximately $1.2 million annually.
About RioCan
RioCan -- http://www.riocan.com-- is Canada's largest real estate
investment trust with a total enterprise value of approximately
$15.1 billion as at September 30, 2015. It owns and manages
Canada's largest portfolio of shopping centers with ownership
interests in a portfolio of 354 retail properties containing
approximately 78 million square feet, including 49 retail
properties containing 13 million square feet in the United States
as at September 30, 2015. RioCan's portfolio also includes 16
properties under development in Canada.
About Target Canada
On Jan. 15, 2015, Target Canada Co. and certain entities commenced
court-supervised restructuring proceedings under the Companies'
Creditors Arrangement Act, R.S.C. 1985, c. C-36, as amended. On
the same day, the Ontario Superior Court of Justice (Commercial
List) granted an order, which, among other things, provides for a
stay of proceedings until February 13, 2015. The Stay Period may
be extended by the Court from time to time. Although not
Applicants, the protections and authorizations provided for in the
Initial Order have been extended to the Partnerships.
Pursuant to the Initial Order, Alvarez & Marsal Canada Inc. was
appointed as monitor of the business and financial affairs of the
Target Canada Entities. The Ontario Court has appointed Alvarez &
Marsal Canada Inc. as monitor in Target Canada et al.'s Companies'
Creditors Arrangement Act proceeding, and Koskie Minsky LLP as
representative counsel of all Target employees in the proceedings.
TARGETED MEDICAL: Incurs $238K Net Loss in Third Quarter
--------------------------------------------------------
Targeted Medical Pharma, Inc., filed with the Securities and
Exchange Commission its quarterly report on Form 10-Q disclosing a
net loss of $238,000 on $1.56 million of total revenue for the
three months ended Sept. 30, 2015, compared to a net loss of $1.01
million on $1.67 million of total revenue for the same period in
2014.
For the nine months ended Sept. 30, 2015, the Company reported a
net loss of $2.46 million on $3.97 million of total revenue
compared to a net loss of $2.41 million on $5.69 million of total
revenue for the same period a year ago.
As of Sept. 30, 2015, the Company had $2.44 million in total
assets, $14.8 million in total liabilities and a total
stockholders' deficit of $12.33 million.
A full-text copy of the Form 10-Q is available for free at:
http://is.gd/pdCTuU
About Targeted Medical
Los Angeles, Calif.-based Targeted Medical Pharma, Inc., is a
specialty pharmaceutical company that develops and commercializes
nutrient- and pharmaceutical-based therapeutic systems.
Targeted Medical reported a net loss of $3.89 million on $7.11
million of total revenue for the year ended Dec. 31, 2014, compared
to a net loss of $9.33 million on $9.55 million of total revenue in
2013.
Marcum LLP, in Irvine, CA, issued a "going concern" qualification
on the consolidated financial statements for the year ended
Dec. 31, 2014, citing that the Company has incurred significant net
losses since its inception. The Company had an accumulated deficit
of $26.9 million and negative working capital of $11.8 million as
of Dec. 31, 2014. In addition, the Company has incurred net losses
since inception and incurred a net loss of $3.90 million for the
year ended Dec. 31, 2014. The foregoing matters raise substantial
doubt about the Company's ability to continue as a going concern.
TAYLOR WHARTON: Worthington to Acquire CryoScience Business
-----------------------------------------------------------
Worthington Industries, Inc., on Nov. 23 disclosed that its
Cryogenics business in the Pressure Cylinders segment is purchasing
the assets of the global CryoScience business of Taylor Wharton,
including a manufacturing facility in Theodore, Ala. Worthington
will also acquire certain other intellectual property and
manufacturing assets of Taylor Wharton focused on the cryogenic
industrial and LNG markets. The asset purchase is being made
pursuant to the Chapter 11 bankruptcy proceedings of Taylor Wharton
for $33.25 million and is expected to close on or about Dec. 7.
The CryoScience product line includes cryogenic biologic specimen
storage, dewars/shippers, controls and data management solutions
for global biomedical research and development, healthcare,
bio-banking, pharmaceutical, biotechnology and animal husbandry
markets. The business also distributes products through warehouses
located in Germany and Australia.
"This purchase extends our cryogenic capabilities into new, global
end markets in life science and healthcare," said Sean Murray,
general manager of Worthington's Cryogenics business. "Taylor
Wharton began manufacturing its CryoScience product in 1957 and has
developed a robust portfolio of quality products and a strong
distribution network in the bioscience space, which we plan to
grow. We are also excited about the U.S. manufacturing platform
the Alabama facility affords us as we grow in cryogenic industrial
gas and LNG."
Worthington plans to leverage the manufacturing assets of the
Theodore, Ala., facility to produce hydrogen, industrial gas and
LNG cryogenic transport trailers that are currently being produced
in its Boston facility (formerly James Russell Engineering), and
eventually move all transport trailer production to Alabama. In
the future, this facility could also provide industrial and LNG
products such as bulk, microbulk and engineered systems for gas and
liquid applications in markets including energy production,
industrial fabrication and manufacturing, and hydrogen
distribution.
About Worthington Industries
Worthington Industries is a global diversified metals manufacturing
company with 2015 fiscal year sales of $3.4 billion. Headquartered
in Columbus, Ohio, provides customers with wide ranging
capabilities, products and services for a variety of markets
including automotive, construction and agriculture; a global leader
in manufacturing pressure cylinders for industrial gas and
cryogenic applications, CNG and LNG storage, transportation and
alternative fuel tanks, oil and gas equipment, and brand consumer
products for camping, grilling, hand torch solutions and helium
balloon kits; and a manufacturer of operator cabs for heavy mobile
industrial equipment; laser welded blanks for light weighting
applications; automotive racking solutions; and through joint
ventures, complete ceiling grid solutions; automotive tooling and
stampings; and steel framing for commercial construction.
Worthington employs approximately 10,000 people and operates 83
facilities in 11 countries.
About Taylor-Wharton
Taylor-Wharton International LLC and Taylor-Wharton Cryogenics LLC
filed Chapter 11 bankruptcy petitions (Bankr. D. Del. Proposed Lead
Case No. 15-12075) on Oct. 7, 2015. The petition was signed by
Thomas Doherty as chief restructuring officer.
Cryogenics is a leading designer, engineer and manufacturer of
cryogenic equipment designed to transport and store liquefied
atmospheric and hydrocarbon gases. Cryogenics has a single United
States operation in Theodore, Alabama. Cryogenics is the direct or
indirect parent of several foreign non-debtor subsidiaries which
have manufacturing operations in China, Malaysia, Slovakia, and
warehousing operations in Germany and Australia.
The Debtors have engaged Reed Smith LLP as general bankruptcy
counsel, Argus Management Corporation as interim management
services provider, Stifel, Nicolaus & Company, Incorporated and
Miller Buckfire & Company LLC as investment banker and Logan &
Company, Inc., as noticing and claims agent.
The Debtors estimated both assets and liabilities of $100 million
to $500 million. O'Neal Steel Inc. is listed as the largest
unsecured creditor holding a trade claim of $788,815.
Judge Brendan Linehan Shannon is assigned to the case.
TAYLOR-WHARTON INT'L: Unsecured Creditors Attack Key Worker Deal
----------------------------------------------------------------
Jeff Montgomery at Bankruptcy Law360 reported that plan to pay
about $513,000 to 24 key employees during Taylor-Wharton
International LLC's ongoing bankruptcy appears unjustified, unclear
and could merely reward workers for "sticking around," unsecured
creditors said in Delaware on Nov. 13, 2015.
The official committee of unsecured creditors said secured lenders
should pay for the bonuses from the debtor’s unencumbered assets
if they want to move ahead with the plan, according to an objection
filed in Taylor Wharton's Chapter 11 case.
Objections to the payments surfaced as Taylor-Wharton moved toward
an auction.
About Taylor-Wharton
Taylor-Wharton International LLC and Taylor-Wharton Cryogenics LLC
filed Chapter 11 bankruptcy petitions (Bankr. D. Del. Proposed
Lead
Case No. 15-12075) on Oct. 7, 2015. The petition was signed by
Thomas Doherty as chief restructuring officer.
Cryogenics is a leading designer, engineer and manufacturer of
cryogenic equipment designed to transport and store liquefied
atmospheric and hydrocarbon gases. Cryogenics has a single United
States operation in Theodore, Alabama. Cryogenics is the direct
or indirect parent of several foreign non-debtor subsidiaries
which have manufacturing operations in China, Malaysia, Slovakia,
and warehousing operations in Germany and Australia.
The Debtors have engaged Reed Smith LLP as general bankruptcy
counsel, Argus Management Corporation as interim management
services provider, Stifel, Nicolaus & Company, Incorporated and
Miller Buckfire & Company LLC as investment banker and Logan &
Company, Inc., as noticing and claims agent.
The Debtors estimated both assets and liabilities of $100 million
to $500 million. O'Neal Steel Inc. is listed as the largest
unsecured creditor holding a trade claim of $788,815.
Judge Brendan Linehan Shannon is assigned to the case.
TENET HEALTHCARE: Glenview Reports 17.9% Stake as of Nov. 12
------------------------------------------------------------
In an amended Schedule 13G filed with the Securities and Exchange
Commission, Glenview Capital Management, LLC and Lawrence M.
Robbins disclosed that as of Nov. 12, 2015, they beneficially own
17,890,230 shares of common stock of Tenet Healthcare Corporation,
representing 17.95 percent of the shares outstanding. A copy of
the regulatory filing is available for free at:
http://is.gd/w36hGv
About Tenet
Tenet Healthcare Corporation -- http://www.tenethealth.com/-- is a
national, diversified healthcare services company with 110,000
employees united around a common mission: to help people live
happier, healthier lives. The company operates 80 hospitals, 214
outpatient centers, six health plans and Conifer Health Solutions,
a leading provider of healthcare business process services in the
areas of revenue cycle management, value based care and patient
communications.
Tenet Healthcare reported net income attributable to the Company's
shareholders of $12 million for the year ended Dec. 31, 2014,
compared to a net loss attributable to the Company's shareholders
of $134 million during the prior year.
As of Sept. 30, 2015, the Company had $23.2 billion in total
assets, $20.5 billion in total liabilities, $1.68 billion in
redeemable noncontrolling interests in equity of consolidated
subsidiaries and $1.01 billion in total equity.
* * *
Tenet carries a 'B' IDR from Fitch Ratings, 'B' corporate credit
rating from Standard & Poor's Ratings Services and 'B1' Corporate
Family Rating from Moody's Investors Service.
TERRAFORM POWER: Moody's Lowers Corporate Family Rating to B2
-------------------------------------------------------------
Moody's lowered the Corporate Family Rating of Terraform Power
Operating LLC (TPO) to B2 from Ba3 and the CFR of Terraform Global
Operating LLC (TGO) to B2 from B1. The unsecured debt rating at
TPO and TGO were both lowered to B3 from B1 and B2, respectively.
Moody's also lowered the Speculative Grade Liquidity (SGL) rating
of TPO to SGL-3 from SGL-2 and maintained the SGL-3 at TGO. The
rating outlook on both entities is negative. TPO and TGO are
subsidiaries of Terraform Power Inc (TERP) and Terraform Global Inc
(GLBL), respectively, which are the publicly listed YieldCos.
Downgrades:
Issuer: TerraForm Global Operating, LLC
Probability of Default Rating, Downgraded to B2-PD from B1-PD
Corporate Family Rating, Downgraded to B2 from B1
Speculative Grade Liquidity Rating, Affirmed SGL-3
Senior Unsecured Regular Bond/Debenture, Downgraded to B3 (LGD
4) from B2 (LGD 4)
Outlook Actions:
Outlook, Negative
Issuer: TerraForm Power Operating LLC
Probability of Default Rating, Downgraded to B2-PD from Ba3-PD
Corporate Family Rating, Downgraded to B2 from Ba3
Speculative Grade Liquidity Rating, Downgraded to SGL-3 from
SGL-2
Senior Unsecured Regular Bond/Debentures, Downgraded to B3 (LGD
5) from B1(LGD 4)
Outlook Actions:
Outlook, Negative
RATINGS RATIONALE
The rating downgrades reflect the strained liquidity and financial
position at parent Sun Edison Inc (SUNE, unrated) as well as
additional capital raising requirements on TPO beyond what was
originally expected to fund the pending Invenergy and Vivint
acquisitions. This includes the obligation to infuse $388 million
in equity into the planned Invenergy warehouse, originally expected
to be owned by SUNE, as well as the Vivint interim agreement (still
subject to final documentation), that obligates TPO to purchase up
to 450-500 MW of rooftop assets from Vivint every year for the next
5 years. This obligation under the interim agreement is in
contrast to the "call rights" arrangement TPO typically has with
SUNE
"With these new capital commitments, we expect that TPO's leverage
at the close of the Invenergy and Vivint acquisitions will exceed
7.0x on a Debt/EBITDA basis" said Swami Venkataraman,
Vice-President, Senior Credit Officer at Moody's. "SUNE's tight
liquidity and lack of access to capital, which likely led to the
Invenergy Warehouse and Vivint interim agreement obligations being
placed on TPO, is also a factor in bringing the ratings lower and
in our maintenance of a negative outlook", he said.
At this point, the ratings at both TPO and TGO are arguably lower
than they would be based purely on their standalone credit profiles
because they also reflect the liquidity stress at and contagion
risks from SUNE. Both TPO and TGO have certain ring-fencing
protections in place that offer a potential buffer against a
possible SUNE bankruptcy. In order for TPO and TGO to be
voluntarily brought into a SUNE bankruptcy, independent directors
on the boards of both companies need to affirmatively vote for such
a filing. Moody's notes that both TPO and TGO continue to benefit
from stable, contractual cash flows are not facing a near-term risk
of insolvency because of their own operations.
However, given the substantial linkages with the parent, and the
fact that TPO and TGO were formed primarily as vehicles to own and
operate SUNE projects, it is possible that the outcome could be
different if SUNE were to file for bankruptcy. The presence of
independent directors does not always protect a subsidiary from
being filed along with the parent.
In Moody's opinion, the connection to SUNE was reinforced this
morning by a number of changes announced to SUNE, TERP and GLBL's
management team and board of directors. The changes will align
SUNE closer to the strategy of using TERP and GLBL as dropdown
vehicles for SUNE assets and away from acquisitions. And while the
announced increase in the number of independent directors at TERP
from three to four (out of seven directors) is a positive, we note
that the new chairman of TERP and GLBL is from the board of SUNE
and TERP's new CEO is also the CFO of SUNE. In Moody's view, the
stronger ties between TERP, GLBL and SUNE arguably increase the
likelihood that the yieldcos could be drawn into a SUNE bankruptcy,
if it were to occur.
Although SUNE reported $1.38 billion of cash on hand as of
Sept. 30, 2015, Moody's estimates that about $700 million of this
cash is at various projects currently under construction and a
majority of this amount is not really free cash available to meet
liquidity needs. Portions of this cash includes EPC profits
retained temporarily at the projects by SUNE, which is normally the
EPC contractor for all the projects it develops, which Moody's
believe is likely available for general liquidity if needed. When
Moody's factor in other liquidity demands on SUNE, such as $150-200
million in earnout payments to First Wind, an additional $200
million or so to repay a margin loan to Deutsche Bank, Q4 interest
expense of about $50 million and $95 million for the exercise of a
put option on the shares of GLBL by the South American company
Renova, there is very little liquidity cushion at SUNE. This
analysis does not yet incorporate whether SUNE's core development
operations are a source or use of cash during this quarter.
In order to complete all pending transactions, Moody's estimates
that TPO needs to issue another $638 million of debt at the parent
or project level, including the Invenergy warehouse. Moody's
thinks TPO maybe need to borrow on one or both of its bridge
facilities extended by members of its bank group to satisfy a
portion of this need, with the balance likely coming from
project-level debt.
Liquidity
As incorporated in the SGL-3 rating, TGO currently has an adequate
liquidity position. Out of the 1.4 GW of projects planned to be
acquired at the time of the IPO, the company has closed 779 MW, 73
MW has fallen away and will no longer be acquired, 427 MW are
currently pending lender or regulatory approvals and 128 MW are
under construction. TGO has $1 billion of cash on hand as of Sept.
30, 2015 and its $485 million revolver is unused. When the
acquisitions are complete, we expect the company will have about
$200 million of cash on hand and its revolver would remain unused.
TPO currently has adequate liquidity, comprising of about $800
million of cash and an unused $725 million revolver. Proforma for
the the Invenergy and Vivint acquisitions, TPO expects to have
virtually zero cash on its balance sheet, although the revolving
credit facility is expected to be unused. However, there is still
some uncertainty about this given that TPO has not yet raised some
of the long-term debt that it needs and may well end with its
revolver partially utilized as well.
Outlook: The negative outlook primarily reflects the liquidity
risks at SUNE and the possibility that TPO and TGO may be drawn
into a SUNE bankruptcy, should it occur.
What could change the rating Up?
In light of the rating action at both issuers, limited near
prospects exist for a rating upgrade. However, if SUNE is able to
either successfully close or terminate its pending transactions,
especially the Vivint acquisition which appears to have been the
catalyst for many of SUNE's current problems, a stable outlook on
TPO and TGO could be considered. This would also require a high
degree of certainty that SUNE will not file for bankruptcy and is
able to successfully continue as a going concern. A stable outlook
would also require that TPO and TGO are not saddled with additional
financial obligations that pressure their financial profiles and
that they continue to maintain adequate liquidity to support their
operations
What could change the rating Down?
Ratings at both TPO and TGO will be lowered further if we perceive
an increase in the risk of a bankruptcy filing at SUNE. Moreover,
Moody's will assess how today's management changes at SUNE, TERP
and GLBL impact strategies around the completion of near-term
acquisitions, both companies' strategic direction, SUNE's liquidity
profile and corporate governance, especially how TERP and GLBL's
independent directors view and react to ongoing developments.
The principal methodology used in these ratings was Unregulated
Utilities and Unregulated Power Companies published in October
2014.
TIAN RECLAMATION: Case Summary & 20 Largest Unsecured Creditors
---------------------------------------------------------------
Debtor: Tian Reclamation & Contracting, Inc.
P.O. Box 237
Gauley Bridge, WV 25085
Case No.: 15-20602
Chapter 11 Petition Date: November 23, 2015
Court: United States Bankruptcy Court
Southern District of West Virginia (Charleston)
Judge: Hon. Frank W. Volk
Debtor's Counsel: James M. Pierson, Esq.
PIERSON LEGAL SERVICES
PO Box 2291
Charleston, WV 25328
Tel: (304) 925-2400
Email: jpierson@piersonlegal.com
Total Assets: $2.97 million
Total Liabilities: $3.23 million
The petition was signed by Timothy Hannigan, president.
A list of the Debtor's 20 largest unsecured creditors is available
for free at http://bankrupt.com/misc/wvsb15-20602.pdf
TRANS COASTAL: Final Cash Collateral Order Entered
--------------------------------------------------
Judge Mary P. Gorman entered a final order authorizing Trans
Coastal Supply Company Inc. to use cash collateral and provide
adequate protection to lender U.S. Bank, National Association.
Prior to the Petition Date, the Lender made loans and other
financial accommodations available to the Debtor pursuant to (i) a
Financing Agreement dated April 30, 2013 and (ii) a Term Loan Note
dated December 30, 2013. As of the Petition Date, the Debtor was
indebted and liable to the Lender in the aggregate principal amount
of $2,715,800.
The Debtor is authorized, pursuant to sections 361 and 363 of the
Bankruptcy Code, to use the following cash collateral of the
Lender:
(i) Cash Collateral constituting the proceeds of a settlement
between the Debtor and Lansing Trade Group-Kansas -- Lansing Cash
Collateral -- some of which may have been received by the Debtor
prior to the Petition Date, in an amount up to $100,000.00, to pay
operating expenses incurred by the Debtor in the ordinary course of
business and
(ii) Cash Collateral constituting proceeds of accounts receivable
that are subject to the Prepetition Liens, to the extent such
accounts receivable proceeds are collected by Altus Global Trade
Solutions ("AGTS"), in an amount up to 15% of such accounts
receivable proceeds that are collected by AGTS (such 15%, the "AGTS
Cash Collateral"), which AGTS Cash Collateral will be used to pay
AGTS for the collection services.
The Debtor is also authorized, to use the Debtor's equipment on
which the Lender has a prepetition lien that is located in Kansas
City, Kansas and which the Debtor uses to fulfill shipments and
other orders.
The Debtor's use of the Authorized Cash Collateral and the Kansas
Equipment is authorized only through April 7, 2016, and may not be
extended other than on the express written consent of the Lender.
As adequate protection for the Debtor's use of the Authorized Cash
Collateral, the Debtor will, among other things, remit to the
Lender (x) all Cash Collateral and (y) all other cash proceeds of
the Prepetition Collateral, in each case other than the Authorized
Cash Collateral (collectively, the "Lender Payments").
As adequate protection for the Debtor's use of the Kansas
Equipment, in addition to the Lender Payments, the Debtor will pay
to the Lender in immediately available funds, commencing on Oct.
15, 2015 and on the first day of each calendar month thereafter
$12,500, which constitutes the reasonable wear and tear of the
Kansas Equipment for such calendar month (the "Equipment
Payments").
As additional adequate protection, in addition to all existing
security interests and liens granted to the Lender in the
Prepetition Collateral, including, without limitation, the Cash
Collateral, the Lender is granted a valid, binding, enforceable,
and duly perfected security interest in and lien and mortgage on
the real property and improvements located at 2803 N. 22nd Street,
Decatur, Macon County, Illinois 62526 and all proceeds, products,
leases, rents, and profits thereof, in the amount of $100,000 (the
"Adequate Protection Lien").
The Debtor's right to use the Cash Collateral will expire on the on
April 7, 2016 or earlier upon the occurrence of a termination
event.
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 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.
TRANS-LUX CORP: Posts $173,000 Net Income for Third Quarter
-----------------------------------------------------------
Trans-Lux Corporation filed with the Securities and Exchange
Commission its quarterly report on Form 10-Q disclosing net income
of $173,000 on $8.16 million of total revenues for the three months
ended Sept. 30, 2015, compared to a net loss of $407,000 on $6.12
million of total revenues for the same period in 2014.
For the nine months ended Sept. 30, 2015, the Company reported a
net loss of $1.09 million on $18.56 million of total revenues
compared to a net loss of $3.07 million on $18.5 million of total
revenues for the same period last year.
As of Sept. 30, 2015, the Company had $15.4 million in total
assets, $18.6 million in total liabilities and a total
stockholders' deficit of $3.24 million.
A full-text copy of the Form 10-Q is available for free at:
http://is.gd/YFmD0m
About Trans-Lux Corporation
Norwalk, Conn.-based Trans-Lux Corporation (NYSE Amex: TLX) is a
designer and manufacturer of digital signage display solutions for
the financial, sports and entertainment, gaming and leasing
markets.
Trans-Lux Corporation incurred a net loss of $4.62 million on $24.4
million of total revenue for the year ended Dec. 31, 2014, compared
with a net loss of $1.86 million on $20.9 million of total revenue
for the year ended Dec. 31, 2013.
BDO USA, LLP, issued a "going concern" qualification on the
consolidated financial statements for the year ended Dec. 31, 2014,
citing that the Company has suffered recurring losses from
operations and has a significant working capital deficiency that
raise substantial doubt about its ability to continue as a going
concern. Further, the auditors said, the Company is in default of
the indenture agreements governing its outstanding 9-1/2%
Subordinated debentures which were due in 2012 and its 8-1/4%
Limited convertible senior subordinated notes which were due in
2012 so that the trustees or holders of 25% of the outstanding
Debentures and Notes have the right to demand payment immediately.
Additionally, the Company has a significant amount due to their
pension plan over the next 12 months.
TRANS-LUX CORP: Transtech Has 21.5% Stake as of Nov. 13
-------------------------------------------------------
In a Schedule 13D filed with the Securities and Exchange Commission
on Nov. 13, 2015, Transtech LED Company Limited and Yaozhong Shi
disclosed that they beneficially own 366,666 shares of common stock
of Trans-Lux Corporation, representing 21.5 percent of the shares
outstanding.
Shi is a director of the Company. The Reporting Persons said they
intend to review their investment in the Company on a continuous
basis. Depending on various factors including, without limitation,
the Company's financial position and strategic direction, actions
taken by its Board of Directors, price levels of the shares of
Common Stock, other investment opportunities available to the
Reporting Persons, conditions in the securities market and general
economic and industry conditions, the Reporting Persons may in the
future take such actions with respect to their investment in the
Company as they deem appropriate including, without limitation,
purchasing additional shares of Common Stock or selling some or all
of their shares of Common Stock, and alone or with others, pursuing
discussions with management, the Board, other shareholders of the
Issuer and third parties with regard to its investment in the
Issuer, and/or otherwise changing their intention with respect to
any and all matters.
A copy of the regulatory filing is available at:
http://is.gd/Ft7QXb
About Trans-Lux Corporation
Norwalk, Conn.-based Trans-Lux Corporation (NYSE Amex: TLX) is a
designer and manufacturer of digital signage display solutions for
the financial, sports and entertainment, gaming and leasing
markets.
Trans-Lux Corporation incurred a net loss of $4.62 million on $24.4
million of total revenue for the year ended Dec. 31, 2014, compared
with a net loss of $1.86 million on $20.9 million of total revenue
for the year ended Dec. 31, 2013.
As of Sept. 30, 2015, the Company had $15.36 million in total
assets, $18.60 million in total liabilities and a total
stockholders' deficit of $3.24 million.
BDO USA, LLP, issued a "going concern" qualification on the
consolidated financial statements for the year ended Dec. 31, 2014,
citing that the Company has suffered recurring losses from
operations and has a significant working capital deficiency that
raise substantial doubt about its ability to continue as a going
concern. Further, the auditors said, the Company is in default of
the indenture agreements governing its outstanding 9-1/2%
Subordinated debentures which were due in 2012 and its 8-1/4%
Limited convertible senior subordinated notes which were due in
2012 so that the trustees or holders of 25% of the outstanding
Debentures and Notes have the right to demand payment immediately.
Additionally, the Company has a significant amount due to their
pension plan over the next 12 months.
TRAVELPORT WORLDWIDE: Announces 10M Common Shares Offering
----------------------------------------------------------
Travelport announced that the Company and certain of the Company's
shareholders intend to offer in an underwritten public offering an
aggregate of 6,000,000 of the Company's common shares, of which
850,000 shares are being offered by the Company and 5,150,000
shares are being offered by the Selling Shareholders. The Company
intends to use the net proceeds that it will receive from the
Offering for general corporate purposes. The Company will not
receive any of the proceeds from the shares sold by the Selling
Shareholders in the Offering.
In a subsequent press release, the Company announced the upsizing
and pricing of the previously announced underwritten public
offering of the Company's common shares. The size of the Offering
has been increased to 10,000,000 common shares, of which 850,000
shares are being offered and sold by the Company and 9,150,000
shares are being offered and sold by certain of the Company's
shareholders.
In connection with the Offering, the Company and the Selling
Shareholders entered into an underwriting agreement with Morgan
Stanley & Co. LLC. Certain of the Selling Shareholders have
granted Morgan Stanley & Co. LLC an option for a period of 30 days
to purchase up to an additional 1,500,000 common shares.
Morgan Stanley is acting as sole underwriter for the offering.
About Travelport Worldwide
Travelport Worldwide Limited is a travel commerce platform
providing distribution, technology, payment and other solutions for
the global travel and tourism industry.
As of Sept. 30, 2015, the Company had $2.93 billion in total
assets, $3.29 billion in total liabilities and a $359 million total
deficit.
* * *
As reported by the TCR in March 2015, Standard & Poor's Ratings
Services raised to 'B' from 'B-' its long-term corporate credit
rating on U.K.-based travel services provider Travelport Worldwide
Ltd. The rating action reflects Travelport's good operating
performance in 2014.
TRAVELPORT WORLDWIDE: Gets $12-Mil. From Common Shares Offering
---------------------------------------------------------------
Travelport announced the closing of an underwritten public offering
by the Company and certain selling shareholders of an aggregate of
10,000,000 of the Company's common shares, of which 850,000 shares
were offered and sold by the Company and 9,150,000 shares were
offered and sold by the Selling Shareholders.
In connection with the Offering, the Company and the Selling
Shareholders entered into an underwriting agreement with Morgan
Stanley & Co. LLC. Certain of the Selling Shareholders have granted
Morgan Stanley & Co. LLC an option for a period of 30 days to
purchase up to an additional 1,500,000 common shares.
The Company received approximately $12 million of gross proceeds
from the offering and intends to use such proceeds, after deducting
expenses related to the offering, for general corporate purposes,
including to cover tax obligations incurred by the Company
resulting from the net settlement of outstanding equity awards to
its employees, upon the vesting of such awards. The Company did
not receive any proceeds from the sale of common shares by the
Selling Shareholders.
Morgan Stanley & Co. LLC acted as sole underwriter for the
Offering.
About Travelport Worldwide
Travelport Worldwide Limited is a travel commerce platform
providing distribution, technology, payment and other solutions for
the global travel and tourism industry.
As of Sept. 30, 2015, the Company had $2.93 billion in total
assets, $3.29 billion in total liabilities and a $359 million total
deficit.
* * *
As reported by the TCR in March 2015, Standard & Poor's Ratings
Services raised to 'B' from 'B-' its long-term corporate credit
rating on U.K.-based travel services provider Travelport Worldwide
Ltd. The rating action reflects Travelport's good operating
performance in 2014.
TRUMP ENTERTAINMENT: Hikes DIP Financing to $39.1 Million
---------------------------------------------------------
At a hearing on Dec. 7, 2015, at 3:00 p.m., Trump Entertainment
Resorts Inc., et al., will seek approval of a third amendment to
their DIP Credit Agreement, which originally provided for $20
million to finance the Debtors' latest Chapter 11 effort.
Objections to the Debtors' motion for approval of the latest
changes to the DIP Credit Agreement with entities controlled by
Carl Icahn are due Nov. 30.
On Nov. 26, 2014, the Debtors filed a motion for an order
authorizing them to obtain postpetition financing of up to $20
million from Carl Icahn. IEH Investments I LLC is the initial
lender, and Icahn Agency Services LLC as collateral agent and
administrative agent under the DIP facility. A full-text copy of
the DIP Credit Agreement is available for free at
http://is.gd/4UpDZc
On Jan. 30, 2015, the Court entered a final order authorizing the
Debtors to obtain DIP financing. The Final DIP Order authorized
the Debtors to access term loans in the aggregate principal amount
of up to $20,000,000 (of which not more than $5,000,000 in the
aggregate may be used for the "Additional Commitment Utilization"
(as defined in the DIP Credit Agreement) and not more than
$15,000,000 in the aggregate may be used for other permitted
purposes under the DIP Credit Agreement).
In order to pay certain real estate taxes, the Debtors and the DIP
Lenders entered into an amendment to the DIP Credit Agreement.
Among other things, the First DIP Amendment increased the principal
amount of term loans from $20,000,000 to $26,500,000 (of which not
more than $12,000,000 in the aggregate could be used for the
"Additional Commitment Utilization" and not more than $14,500,000
in the aggregate could be used for other permitted purposes under
the DIP Credit Agreement) and provided for payment by the Debtors
of certain real estate taxes. On March 19, 2015, the Court entered
an order approving the First DIP Amendment.
On March 12, 2015, the Court entered an order confirming the
Debtors' Third Amended Joint Plan of Reorganization Under Chapter
11 of the Bankruptcy Code As Modified. The Effective Date of the
Plan has not yet occurred.
Pursuant to the terms of the Plan and the Confirmation Order, the
Effective Date cannot occur until, among other things, the CBA
Order (as defined in the Plan) becomes a Final Order, which has not
occurred because the Third Circuit Court of Appeals has not yet
issued an opinion on Local 54 – Unite Here's appeal (the "CBA
Order Appeal") of the CBA Order. Thus, with the current Maturity
Date of Dec. 31, 2015 quickly approaching, the Debtors determined
that it is necessary to extend the Maturity Date by six months to
June 30, 2016. Accordingly, the Debtors and the DIP Lenders on
Oct. 30, 2015, entered into a second amendment to the DIP Credit
Agreement to provide, among other things, that the definition of
"Maturity Date" set forth in Article I of the DIP Credit Agreement
is amended by replacing "December 31, 2015" in clause (a) thereof
with "June 30, 2016". Judge Kevin Gross on Nov. 18, 2015, approved
the Second DIP Amendment.
The Debtors and the DIP Lenders on Nov. 19 entered into a third
amendment to the DIP Credit Agreement.
The Third Amendment
In the motion seeking approval of the Third DIP Amendment, the
Debtors explained that they have deferred paying certain 2015 real
estate taxes to the City of Atlantic City in light of, among other
things, the outstanding dispute with Atlantic City regarding the
assessed values of the underlying real property. However, in an
effort to prevent the continued accrual of fees and interest at a
rate of up to 18% on the accrued but unpaid amount owed to Atlantic
City for 2015 real estate taxes, the Debtors have determined, in
their business judgment, that payment of their 2015 Real Estate
Taxes prior to the sale by the City of Atlantic City of any tax
certificates in connection therewith would be in the best interests
of the Debtors' estates.
The salient terms of the Third Amendment to the DIP Credit
Agreement are:
a. The maximum aggregate principal amount of the Term Loans will
be increased by $12,600,000 by replacing "$26,500,000" with
"$39,100,000" in Section 2.01 of the DIP Credit Agreement.
b. The Additional Commitment Utilization shall be increased by
$12,600,000 by replacing "$12,000,000" with "$24,600,000" in
Section 5.01(a)(iii) of the DIP Credit Agreement.
c. The Debtors will be authorized to pay the Real Estate Taxes
out of the Additional Commitment Utilization by inserting after
clause (d) thereof and before "; provided, however," the following:
"and (e) the Loan Parties, upon written consent of the
Administrative Agent, will pay the real estate taxes and interest
assessed against the Casino Properties for the second, third and
fourth quarters of 2015 in the aggregate amount of approximately
$12,600,000 by no later than December 11, 2015";
d. The definition of "Additional Commitment Utilization" in
Section 5.01(a)(iii) of the DIP Credit Agreement shall be revised
to refer to clauses "(a)" through "(e)" rather than clauses "(a)"
through "(d)".
e. Section 5.01(a)(iii) shall be further revised by replacing
"pursuant to (a) through (d) above" with "pursuant to (a) through
(e) above".
Robert F. Poppiti, Jr., Esq., at Young Conaway Stargatt & Taylor,
LLP, explains that given the Debtors' current capital structure and
already extensively negotiated DIP Facility, the Debtors, in their
business judgment, determined that the only prudent path was for
the Debtors to seek the necessary additional funding from the DIP
Lenders.
According to Mr. Poppiti, the Third Amendment to the DIP Credit
Agreement will ensure that the Debtors have access to the necessary
funding to satisfy the Real Estate Taxes, the payment of which is
necessary to prevent the accrual of interest at a rate of 18%,
among other things.
The Debtors' attorneys:
YOUNG CONAWAY STARGATT & TAYLOR, LLP
Matthew B. Lunn, Esq.
Robert F. Poppiti, Jr., Esq.
Ian J. Bambrick, Esq.
Ashley E. Markow, Esq.
Rodney Square, 1000 N. King Street
Wilmington, Delaware 19801
Telephone: (302) 571-6600
Facsimile: (302) 571-1253
- and -
STROOCK & STROOCK & LAVAN LLP
Kristopher M. Hansen
Erez E. Gilad
Gabriel E. Sasson
180 Maiden Lane
New York, New York 10038-4982
Telephone: (212) 806-5400
Facsimile: (212) 806-6006
About Trump Entertainment Resorts
Trump Entertainment Resorts Inc., owner of the Atlantic City
Boardwalk casinos that bear the name of Donald Trump, returned to
Chapter 11 bankruptcy (Bankr. D. Del. Case No. 14-12103) on Sept.
9, 2014, with plans to shutter its casinos.
TER and its affiliated debtors own and operate two casino hotels
located in Atlantic City, New Jersey. TER said it will close the
Trump Taj Mahal Casino Resort by September 2014, and, absent union
concessions, the Trump Plaza Hotel and Casino by November 2104.
The Debtors have sought an order authorizing the joint
administration of their Chapter 11 cases and the consolidation
thereof for procedural purposes only. Judge Kevin Gross presides
over the Chapter 11 cases.
The Debtors have tapped Young, Conaway, Stargatt & Taylor, LLP, as
counsel; Stroock & Stroock & Lavan LLP, as co-counsel; Houlihan
Lokey Capital, Inc., as financial advisor; and Prime Clerk LLC, as
noticing and claims agent.
TER estimated $100 million to $500 million in assets as of the
bankruptcy filing.
Trump Hotels & Casino Resorts, Inc., first filed for Chapter 11
protection on Nov. 21, 2004 (Bankr. D.N.J. Case No. 04-46898
through 04-46925) and exited bankruptcy in May 2005 under the name
Trump Entertainment Resorts Inc. Trump Entertainment Resorts
sought Chapter 11 protection on Feb. 17, 2009 (Bankr. D.N.J. Lead
Case No. 09-13654) and exited bankruptcy in 2010.
The Debtors as of Sept. 9, 2014, owe $285.6 million in principal
plus accrued but unpaid interest of $6.6 million under a first
lien debt issued under their 2010 bankruptcy-exit plan. The
Debtors also have trade debt in the amount of $13.5 million.
* * *
Judge Kevin Gross of the U.S. Bankruptcy Court for the District of
Delaware on March 12, 2015, confirmed Trump Entertainment Resorts,
Inc., et al.'s Third Amended Joint Plan of Reorganization and
Disclosure Statement pursuant to Section 1129 of the Bankruptcy
Code.
The Debtors filed on January 5, 2015, the Plan and accompanying
Disclosure Statement to, among other things, provide that holders
of General Unsecured Claims will receive Distribution Trust
Interests, which will include $1 million in cash and the proceeds,
if any, of certain avoidance actions. Under the revised plan,
holders of general unsecured claims are estimated to recover 0.47%
to 0.43% of their total allowed claim amount. The Amended Plan
also includes language reflecting the recently-approved $20
million loan from Carl Icahn.
The Effective Date of the Plan has not yet occurred, as certain
conditions precedent to the occurrence of the Effective Date,
including the CBA Order having become a Final Order, have not yet
been met.
TS EMPLOYMENT: Chapter 11 Trustee Taps Duff & Phelps as Accountant
------------------------------------------------------------------
James S. Feltman, chapter 11 trustee for TS Employment Inc., asks
the U.S. Bankruptcy Court for the Southern District of New York for
authority to employ Duff & Phelps as successor accountant to
provide accounting, financial advisory and investigative services
nunc pro tunc Aug. 24, 2015.
The firm will:
a) assist in identifying and documenting estate property,
including all tangible and intangible assets both domestic and
international;
b) assist in determining the existence and status of estate
insurance coverage;
c) assist the Trustee in the preparation of financial-related
disclosures required by the Court, including Monthly Operating
Reports;
d) assist with claims resolution procedures, including but not
limited to, analyses of creditors' claims by type and entity and
maintenance of claims database;
e) assist with the identification of executory contracts and
leases and performance of cost/benefit evaluations with respect to
the assumption or rejection of each;
f) prepare enterprise, asset, and liquidation valuations;
g) assist in the preparation of financial information for
distribution to creditors and others, including, but not limited
to, cash receipts and disbursement analysis, analysis of various
asset and liability accounts, and analysis of proposed transactions
for which Court approval is sought;
h) assist in the development of investigative reports as may be
required under section 1106(a)(4)(A) of the Bankruptcy Code;
i) attend meetings and assist in discussions with banks and
other lenders, any official committee(s) that may be appointed in
this Chapter 11 Case, the United States Trustee, the Securities and
Exchange Commission, the Department of Justice, other parties in
interest, and professionals hired by same, as requested;
j) assist in the preparation of information and analysis
necessary for the confirmation of a plan of reorganization in this
Chapter 11 Case, including information contained in the disclosure
statement, if a confirmation of a plan is found to be advisable by
the Trustee;
k) assist in the preparation and review of the business and
financial condition of the Debtor generally;
l) assist in the analysis/preparation of information necessary
to assess the tax attributes related to the confirmation of a plan
of reorganization in this Chapter 11 Case, including the
development of the related tax consequences contained in the
disclosure statement;
m) assist in the preparation of the Debtor's tax returns, in
conjunction with any other professionals retained by the Trustee;
n) provide litigation advisory services with respect to
accounting and tax matters, along with expert witness testimony on
case related issues as required by the Trustee;
o) provide forensic accounting services necessary to determine
the disposition of estate assets and assisting counsel in the
development of litigation claims which may be property of the
estate;
p) assist in the evaluation and analysis of, and provide
forensic and litigation advisory services and testimony regarding
avoidance actions, including fraudulent conveyances and
preferential transfers or other matters; and
q) render such other assistance as the Trustee or his counsel
may deem necessary consistent with the role of an accountant to the
extent that it would not be duplicative of services provided by
other professionals in this proceeding.
The firm's current normal and customary rates for the services:
Designation Hourly Rate
----------- -----------
Managing Director and Director $895-950
Senior Vice President $725-795
Vice President $625-695
Senior Associate $495-595
Associate/Analyst $295-445
Paraprofessional/Administrative $160-250
The Chapter 11 trustee assures the Court that the firm is a
"disinterested person" within the meaning of Section 101(14) of the
Bankruptcy Code.
The Chapter 11 trustee retained as counsel:
Albert Togut, Esq.
Steven S. Flores
TOGUT, SEGAL & SEGAL LLP
One Penn Plaza, Suite 3335
New York, NY 10119
Tel: 212-594-5000
Fax: 212-967-4258
Email: altogut@TeamTogut.com
sflores@teamtogut.com
Based in New York, TS Employment Inc. is a professional employer
organization that provides payroll-related services. Its only
customer is publicly held Corporate Resource Services, Inc., a
diversified technology, staffing, recruiting, and consulting
services firm. TS processes payroll of up to 30,000 employees.
TS Employment sought Chapter 11 for protection (Bankr. S.D.N.Y.
Case No. 15-10243) in Manhattan on Feb. 2, 2015. Judge Martin
Glenn is assigned to the case.
The Debtor estimated at least $100 million in assets and debt.
The Debtor tapped Scott S. Markowitz, Esq., at Tarter Krinsky &
Drogin LLP, in New York, as counsel. Realization Services Inc.
serves as the Debtor's consultant.
James S. Feltman serves as Chapter 11 trustee. The Chapter 11
Trustee retains Friedman LLP as special accountant and Mesirow
Financial Consulting, LLC, as accountant to provide accounting,
forensic, and investigatory services.
VIAWEST INC: Moody's Affirms B2 Term Loan Rating Following Add-On
-----------------------------------------------------------------
Moody's Investors Service affirmed the B2 rating on ViaWest, Inc.'s
term loan in response to the company announcing a $170 million
add-on to finance the $162.5 million acquisition of INetU Holdings,
LLC (not rated). As part of the same rating action, Moody's also
affirmed ViaWest's B2 corporate family rating and its B2-PD
probability of default rating, and changed the ratings outlook to
negative from stable.
The outlook action was prompted by expectations of the company
continuing to be cash flow negative for the foreseeable future, the
significant potential of additional debt-financed acquisitions, and
the likelihood of leverage of debt-to-EBITDA exceeding Moody's
prior indicative downgrade trigger of 5x for a protracted period.
The ratings affirmations are based on the solid sponsorship
provided by ViaWest's owner, Shaw Communications Inc. (Shaw; Baa3
stable), a Calgary, Alberta, headquartered diversified Canadian
communications company whose core business is providing cable-based
television, internet and telephone service to residential
consumers, primarily in Western Canada.
The rating presumes that the final structure and documentation of
the transaction conforms with preliminary materials, including
financial information, provided to Moody's.
This summarizes Moody's ratings and the rating actions for
ViaWest:
Affirmations:
Issuer: ViaWest, Inc.
Corporate Family Rating, Affirmed at B2
Probability of Default Rating, Affirmed at B2-PD
$565m Senior Secured Term Loan B (including $170 million
add-on), Affirmed at B2 (LGD4)
$95 mil. Senior Secured Revolving Credit Facility (including
$10 million add-on), Affirmed at B2 (LGD4)
Outlook Actions:
Outlook, Changed to Negative from Stable
RATINGS RATIONALE
ViaWest's B2 corporate family rating reflects its weak free cash
flow profile and acquisitive strategy, the combination of which
suggests a strong likelihood of additional debt financing being
required to sustain operations. The company's relationship with
Shaw reduces financing concerns with respect to ViaWest's ongoing
cash flow deficits in the context of the company's very small
scale. While Shaw is not obligated to fund ViaWest, its
sponsorship differentiates ViaWest from the latter's B3-rated
peers. Viawest's stable base of contracted recurring revenues, its
position in smaller markets with less intense competitive dynamics,
and the currently strong market demand for colocation/managed
services are credit-positive considerations.
Rating Outlook
The outlook is negative based on expectations of the company
continuing to be cash flow negative for the foreseeable future, the
significant potential of additional debt-financed acquisitions, and
the likelihood that leverage of debt-to-EBITDA remaining at
elevated levels for a protracted period.
What Could Change the Rating - Up
Positive ratings pressure would develop if:
Underlying business conditions are favorable, and
The company is effectively executing its strategic plans, and
Showing strong and sustainable operational performance, and
Moody's were to expect:
Debt-to-EBITDA of less than 5.0x (5.4x at 31Aug15), and
Free cash flow to debt above 5% (-6.5% at 31Aug15), both on a
sustained basis
What Could Change the Rating - Down
Alternatively, negative ratings actions could result if:
Business conditions are expected to be weak for a prolonged
period,
If liquidity becomes strained,
If revenue growth slows, or
If Moody's adjusted leverage is not on track to fall below
towards 6x (5.4x at 31Aug15) by mid-2017.
The principal methodology used in these ratings was Global
Communications Infrastructure Rating Methodology published in June
2011.
Company Profile:
Headquartered in Greenwood Village, Colorado, ViaWest, an indirect,
private, wholly-owned subsidiary of Shaw, is a provider of data
center and managed services. The company currently operates in 8
markets across the United States.
VIVARO CORP: Objections to Breezecom Claims
-------------------------------------------
In a Memorandum Opinion and Order dated November 13, 2015, which is
available at http://is.gd/Ty81jgfrom Leagle.com, Judge Martin
Glenn of the U.S. Bankruptcy Court for the Southern District of New
York sustained Vivaro Corporation, et al.'s objections to the
claims of Breezecom FZC, Call My Way NY S.A., Smartbox Equipment,
Samitel Limited, Telecam/IP Network of the Americas Inc.,
Americatel Peru, S.A., Worldwide Telecome Xchange Carrier FZ LLC,
and Maxcom Telecominicaciones S.A.B. De C.V., and disallowed and
expunged their claims.
The Debtors objected to the claims of Breezecom, et al., which are
alleged to be foreign entities without a business address within
the United States. The Debtors' Objections are unopposed and are
supported by the Declaration of Philip Gund, the Chief
Restructuring Officer of Vivaro Corporation in Support of the
Debtors' Objections to Claims. The Debtors seek to have the Claims
disallowed and expunged because each Claimant received a preference
payment avoidable and has not returned the amount for which the
Claimant is liable.
The case is In re: VIVARO CORPORATION, et al., Chapter 11, Debtors,
CASE NO. 12-13810 (MG) JOINTLY ADMINISTERED)(Bankr. S.D.N.Y.).
Vivaro Corporation, Debtor, represented by Gabriel Del Virginia,
Esq. -- Law Offices of Gabriel Del Virginia, Hanh V. Huynh, Esq. --
hhuynh@herrick.com -- Herrick, Feinstein LLP, Frederick E. Schmidt,
Esq. -- eschmidt@cozen.com -- Cozen O'Connor, Justin B. Singer,
Esq. -- jsinger@herrick.com -- Herrick, Feinstein LLP, Adam D.
Wolper, Esq. -- awolper@herrick.com -- Herrick, Feinstein LLP.
Official Committee of Unsecured Creditors, Creditor Committee,
represented by George Angelich, Esq. -- ARENT FOX LLP, 1675
Broadway, New York, NY 10019, Tel: (212) 484-3900.
About Vivaro Corp.
Vivaro Corp., which specializes in the sale of international
calling cards in the U.S., filed a Chapter 11 petition (Bankr.
S.D.N.Y. Case No. 12-13810) on Sept. 5, 2012, together with six
other related companies, including Kare Distribution Inc. The
Debtor is represented by Frederick E. Schmidt, Esq., at Hanh V.
Huynh, Esq., at Herrick, Feinstein LLP. Garden City Group Inc. is
the claims and notice agent.
A five-member official committee of unsecured creditors has been
appointed in the case. The Creditors Committee is represented by:
George P. Angelich, Esq.
George V. Utlik, Esq.
ARENT FOX LLP
1675 Broadway
New York, NY 10019
Tel: (212) 484-3900
The Debtors' CRO is represented by:
Phil Gund, Esq.
MAROTTA GUND BUDD & DZERA, LLC
The Lincoln Building
60 E. 42 Street, 50th Floor
New York, NY 10165
Tel: (212) 818-1555
By Order dated January 31, 2013, the Court approved the sale of
substantially all of the Debtors' assets to Next Angel, LLC, n/k/a
Angel Americas, LLC. The sale closed on February 8, 2013 and
divested the Debtors' Estates of their prepetition businesses.
WAFERGEN BIO-SYSTEMS: Reports Results for Third Quarter 2015
------------------------------------------------------------
WaferGen Bio-systems reported a net loss of $3.47 million on $2.01
million of total revenue for the three months ended Sept. 30, 2015,
compared to a net loss of $2.78 million on $1.25 million of total
revenue for the same period a year ago.
For the nine months ended Sept. 30, 2015, the Company reported a
net loss of $12.10 million on $4.76 million of total revenue
compared to a net loss of $7.43 million on $4.38 million of total
revenue for the same period last year.
As of Sept. 30, 2015, the Company had $10.65 million in total
assets, $7.66 million in total liabilities and $2.99 million in
total stockholders' equity.
"Over the past few months, our business has gained significant
momentum," said Rollie Carlson, Ph.D., president and chief
executive officer of WaferGen. "With our base business performing
strongly following two quarters of sequential revenue growth, and
the recent commercial launch of our revolutionary ICELL8 Single
Cell System, WaferGen is well positioned for long-term success. In
addition, following our recent public securities offering, the
Company is now well capitalized in order to support a number of key
corporate initiatives, including ICELL8-related commercialization
activities."
At Sept. 30, 2015, the Company had cash & cash equivalents of
approximately $3.7 million, compared to approximately $14.7 million
at Dec. 31, 2014. This does not include the approximately $15.7
million in net proceeds received in the recent public offering,
which closed after the third quarter ended.
A full-text copy of the press release is available for free at:
http://is.gd/HtzLbG
About WaferGen Bio-systems
Fremont, California-based WaferGen Bio-systems, Inc., engages in
the development of systems for gene expression quantification,
genotyping and stem cell research. Since 2008, the Company's
primary focus has been on the development, manufacture and
marketing of its SmartChip System, a genetic analysis platform
used for profiling and validating molecular biomarkers in the life
sciences and pharmaceutical drug discovery industries.
WaferGen Bio-systems reported a net loss of $10.7 million in 2014,
a net loss of $16.3 million in 2013 and a net loss of $8.97
million in 2012.
WHISKEY ONE: Court Refuses to Review Yumkas Vidmar Hiring
---------------------------------------------------------
The Hon. David E. Rice of the U.S. Bankruptcy Court for the
District of Maryland denied FAIRMD, LLC's motion to reconsider the
order authorizing employment of Yumkas, Vidmar & Sweeney, LLC, as
counsel to Whiskey One Eight, LLC.
The Debtor opposed the motion for reconsideration and filed these
documents: (1) Lease Agreement between Whiskey One Eight, LLC and
Red Plane Aviation, Inc.; (2) Loan Agreement between Fairlake
Street Capital LLC and FAIRMD LLC; and (3) FAIRMD LLC's Operating
Agreement.
FAIRMD, in a supplement to its motion, stated that it moved for
reconsideration of the Aug. 4, 2015 order so that it could have
additional time to investigate facts concerning whether YVS is
disinterested. There was a lack of disclosure in connection with
the application. After the filing of the motion to reconsider,
counsel for FAIRMD requested information from YVS, but YVS refused
to answer FAIRMD's questions. In fact, rather than supplying
information, YVS threatened to seek sanctions from the Court if the
Court were to deny FAIRMD's motion to reconsider.
About Whiskey One
Whiskey One Eight, LLC filed a Chapter 11 bankruptcy petition
(Bankr. D. Md. Case No. 15-19885) on July 15, 2015. Andrew Zois
signed the petition as managing member. The Debtor disclosed total
assets of $18,008,600 and total liabilities of $5,100,057 as of the
Chapter 11 filing.
Lawrence Joseph Yumkas, Esq., at Yumkas, Vedmar & Sweeney, LLC as
the Debtor's counsel. Judge David E. Rice presides over the case.
ZOHAR CDO 2003-1: Patriarch Wants Exclusive Periods Terminated
--------------------------------------------------------------
Patriarch Partners XV, LLC, the largest creditor of Zohar CDO
2003-1, Limited, asks the Bankruptcy Court to terminate the
exclusive plan filing and solicitation periods of Zohar-I, Zohar
CDO 2003-1, Corp, and Zohar CDO 2003-1, LLC.
Patriarch, allegedly holding approximately $286.5 million in debt
issued by Zohar-I, said it has filed an involuntary Chapter 11
bankruptcy petition in the U.S. Bankruptcy Court for the Southern
District of New York in order to protect itself and Zohar-I from
the "fraudulent efforts" of a more senior creditor, MBIA, Inc. and
MBIA Insurance Corporation, to arrogate the value of Zohar-I's
assets for itself, and to Patriarch's prejudice.
"Patriarch XV has been forced to pursue this route because of
MBIA's fraudulent scheme to induce Patriarch XV to spend over $103
million to buy out a third-party noteholder in Zohar-I to
facilitate a restructuring of Zohar-I," said Jay M. Goffman, Esq.
at Skadden, Arps, Slate, Meagher & Flom LLP, counsel to Patriarch,
in papers filed with the Court.
Mr. Goffman related that after Patriarch bought the debt, MBIA
reneged on its agreement to extend the maturity of Zohar-I in order
to foreclose on the assets of Zohar-I.
According to Mr. Goffman, "MBIA's stunning about-face on its
agreement to extend Zohar-I's maturity represents a manifest lack
of good faith. It has used, and undoubtedly will continue to use,
its position as the "Controlling Party" in order to exert undue
pressure on Patriarch XV to submit to its demands absent the
assistance of this Court."
Patriarch disclosed it has developed a restructuring plan for
Zohar-I that will pay MBIA's more senior notes in full while
maximizing value for Patriarch XV as well, while also protecting
the value of the underlying operating companies and the noteholders
of Zohar-II and Zohar-III, which too, could also be adversely
affected by MBIA's scheme.
"Patriarch XV should be allowed to propose that plan now to bring
to an end over three years of deceitful negotiations by MBIA.
Zohar-I itself has no meaningful interest in proposing a plan
itself," Mr. Goffman said.
He added that termination of exclusivity will allow Patriarch to
materially advance Zohar-I's restructuring, a restructuring that
MBIA, as the "Controlling Person," has surreptitiously frustrated
and foiled during three years of fraudulent conduct.
"It is time for MBIA's conduct to be checked by a court of equity;
for this Court to allow Patriarch XV to utilize the tools afforded
by the Bankruptcy Code to protect value for itself, while
simultaneously paying MBIA off in full," asserted Mr. Goffman.
About Zohar CDO 2003-1
Patriarch Partners XV, LLC filed involuntary Chapter 11 bankruptcy
petitions against Zohar CDO 2003-1, Corp., Zohar CDO 2003-1,
Limited and Zohar CDO 2003-1, LLC (Bankr. S.D.N.Y. Case Nos.
15-23681 to 15-23682) on Nov. 22, 2015.
Patriarch's restructuring counsel is Skadden, Arps, Slate, Meagher
& Flom LLP and its financial advisor is Moelis & Co.
[*] Alex Catto Joins Greenberg Traurig's NY Office
--------------------------------------------------
Jeff Zalesin at Bankruptcy Law360 reported that Greenberg Traurig
LLP has added five attorneys to its New York office, including two
former McDermott Will & Emery LLP partners whose combined expertise
ranges from the foreign bribery and white collar defense to private
equity deals, bankruptcy and energy project finance.
The firm, in its press release, said that the firm added Iskender
"Alex" H. Catto to the New York office. Mr. Catto joins as chair
of the firm's Power Industry Projects and Restructuring Group.
Prior to joining Greenberg Traurig, Mr. Catto was a partner at
McDermott Will & Emery.
Mr. Catto advises clients on complex corporate matters, including
asset acquisitions, project development, mergers, and
restructurings. He also represents clients on state and federal
regulatory matters, financings, and commodity, renewable energy,
financial, and derivative hedging transactions. Catto’s
experience includes representing generators, marketers, private
equity clients, pipelines, utilities, and governmental entities in
a wide variety of complex matters.
A copy of the report is available for free at http://is.gd/Yn2FAY
[*] Dorsey Wins M&A Advisor Award for Real Estate Deal of the Year
------------------------------------------------------------------
The M&A Advisor announced the winners of the 14th Annual M&A
Advisor Awards on Tuesday, November 17, at the 2015 M&A Advisor
Awards Gala at the New York Athletic Club. Dorsey represented JCM
Holdings III Limited, an affiliate of Jerritt Canyon Gold LLC, in
the purchase out of bankruptcy of Elko County, Nevada gold mines
from Veris Gold U.S.A., Inc. in a transaction that was named the
Real Estate Deal of the Year.
The multi-office, multi-disciplinary Dorsey team was led by
Partners William Prince, Wells Parker and Annette Jarvis. The
Dorsey team also included Partners Ken Sam, Thomas Kelly, John
Hollinrake, Michael Voves, and Michael Thomson, Of Counsel Richard
Manner, Associates Heath Waddington, Megan Baker, Aaron Goldstein,
Spencer Kirton, and Senior Paralegal Kathryn Shelton.
"This transaction involved so many of Dorsey's strengths including
mining, real estate, bankruptcy, tax, labor and employment,
benefits and more," said Dorsey & Whitney Managing Partner Ken
Cutler. "The recognition is much deserved."
The Gala is the premier celebration of the year for the industry's
leading M&A Dealmakers and was held in conjunction with the 2015
M&A Advisor Summit that featured over 400 of the industry's leading
M&A professionals participating in exclusive interactive forums led
by over 35 M&A, media, academic, and stalwarts.
A complete list of the winners is available at http://is.gd/anOKLC
About Dorsey & Whitney LLP
Clients have relied on Dorsey since 1912 as a valued business
partner. With locations across the United States and in Canada,
Europe and the Asia-Pacific region, Dorsey provides an integrated,
proactive approach to its clients' legal and business needs.
Dorsey represents a number of the world's most successful companies
from a wide range of industries, including leaders in the banking,
energy, food and agribusiness, health care, mining and natural
resources, and public-private project development sectors, as well
as major non-profit and government entities.
[*] Top BLaw360's 100 Firms Among 10 Mightiest Bankruptcy Practice
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Jonathan Randles at Bankruptcy Law360 reported that ten firms have
established themselves as go-to shops for clients in need of
restructuring expertise by providing the deepest bench of
bankruptcy partners, placing them among the ranks of the largest
bankruptcy practice groups in the U.S.
From Kirkland & Ellis LLP to DLA Piper, each of the firms is at the
top of Bankruptcy Law360 100, an annual ranking of the 100 firms
that have dedicated the most partners to their bankruptcy,
restructuring and insolvency practice, according to data provided
for the Law360.
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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.
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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 ***