/raid1/www/Hosts/bankrupt/TCR_Public/160106.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, January 6, 2016, Vol. 20, No. 6
Headlines
ABEL & SONS: Voluntary Chapter 11 Case Summary
ACADIA HEALTHCARE: Moody's Puts B1 CFR Under Review for Downgrade
AGFEED USA: Hormel's Bid to Dismiss Suit Granted
ALLEGHENY REAL ESTATE: Voluntary Chapter 11 Case Summary
ALVION PROPERTIES: Court Approves Alvion II Step Transaction
AMU HOLD: Voluntary Chapter 11 Case Summary
ATLANTA GREENSPACE: Case Summary & 7 Top Unsecured Creditors
ATLAS RESOURCE: S&P Lowers Rating on Sr. Unsecured Debt to 'CCC'
BACK9NETWORK INC: Bankruptcy Watchdog Questions Borrowing Deal
BAILEY HILL: Case Summary & 11 Largest Unsecured Creditors
BLACK ELK: Gieger Laborde Files Rule 2019 Statement
BPZ RESOURCES: Plan of Liquidation Takes Effect
CALIBER PARTNERSHIP: Voluntary Chapter 11 Case Summary
CALIFORNIA RURAL: S&P Lowers Rating on 2006 Bonds to 'D'
CANYON PORTAL: Hires Stinson Leonard as Counsel
CANYON PORTAL: Section 341 Meeting Scheduled for Feb. 2
CANYON PORTAL: Seeks Approval of $85,000 DIP Financing
CANYON PORTAL: Wants to Use C-III's Cash Collateral
CAPITAL CHRISTIAN: Case Summary & 7 Largest Unsecured Creditors
CAR FUEL #1: Voluntary Chapter 11 Case Summary
CHRISTIAN FAMILY CHURCH: Case Summary & 8 Top Unsecured Creditors
CHS/COMMUNITY HEALTH: Moody's Affirms B1 CFR, Outlook Negative
CJB ALURA POINT: Voluntary Chapter 11 Case Summary
COASTAL FORKLIFT: Case Summary & 20 Largest Unsecured Creditors
COLLIER HILLS: Case Summary & 19 Largest Unsecured Creditors
COYNE INTERNATIONAL: Can Use Cash Collateral Until Feb. 26
COYNE INTERNATIONAL: Court OKs Auction of Remaining Assets
DDS HOSPITALITY: Voluntary Chapter 11 Case Summary
ELM UPTOWN ACQUISITION: Case Summary & 7 Top Unsecured Creditors
ESP RESOURCES: Admits Limited Capital, Raises Going Concern Doubt
EZJR INC: Losses, Lack of Liquidity Cast Going Concern Doubt
FJK PROPERTIES: Court Approves Holyfield & Thomas as Accountant
FJK PROPERTIES: Court Okays Holliday Fenoglio as Exclusive Agent
FJK PROPERTIES: Hires McDonald Hopkins as Real Estate Counsel
GEORGETOWN MOBILE: Court Enters Agreed Order Confirming Plan
GOLD RIVER: Bid to Reduce Payments to Lone Oak by $592K Denied
GOODMAN AND DOMINGUEZ: Case Summary & 20 Top Unsecured Creditors
GT ADVANCED: Plan Offers De Minimis Recovery to Unsecureds
GT ADVANCED: Plan Outline Hearing Set for Jan. 21
HAGGEN HOLDINGS: Judge Extends Deadline to Remove Suits to April 5
HIGH-TOP HOLDINGS: Case Summary & 5 Largest Unsecured Creditors
INTERNATIONAL BRIDGE: Insider Deal Wanting Disclosure, Leidos Says
KALOBIOS PHARMACEUTICALS: Delisting Hearing Scheduled for Feb. 25
LUTETIUM CAPITAL: Plans to Liquidate 2 Funds, Return Cash
MICHAEL TOLOMEO: Ct. Pierces Gemini Int'l, et al.'s Corporate Veils
MOLYCORP INC: No Deal Reached with Committee After Mediation
MOLYCORP INC: Oaktree Plan a Sham Transaction, Says Committee
MOLYCORP: Plan Hearing on Friday; Liquidation Analysis etc. Filed
NATURAL PORK: To Seek Approval of Joint Liquidating Plan on Jan. 8
NET DATA: Stradling Yocca Okayed as Corp. Transactional Counsel
NETTALK.COM INC: Posts Net Loss, Has Going Concern Doubt
NICHOLS CREEK: Chapter 11 Case Dismissed
OAK AND EMBER: Case Summary & 18 Largest Unsecured Creditors
PARKVIEW ADVENTIST: Hires Berry Dunn as Accountants
PEP BOYS-MANNY: S&P Revises CreditWatch on 'B' CCR to Negative
PETT FAMILY: Voluntary Chapter 11 Case Summary
PIER ENTERPRISES: Case Summary & 2 Largest Unsecured Creditors
PITTSBURGH GLASS: S&P Affirms 'B+' CCR, Outlook Stable
RAAM GLOBAL: Hires Blackhill Partners as Restructuring Advisor
RAZA SERVICES: Case Summary & 5 Largest Unsecured Creditors
RCS CAPITAL: To File Chapter 11 to Facilitate Restructuring
RELATIVITY MEDIA: Committee Endorses Plan of Reorganization
RESIDENTIAL CAPITAL: Trust Adopts Revised Compensation Program
SAMSON RESOURCES: Committee Cuts Plan Extension to 6 Months
SAMSON RESOURCES: U.S. Trustee Seeks Appointment of Ch. 11 Examiner
SAN BERNARDINO, CA: Free to Outsource Firefighting Services, Court
SPOTLIGHT INNOVATION: Has Going Concern Doubt Amid Losses
STEVIA FIRST: Past and Future Losses Raise Going Concern Doubt
SWIFT ENERGY: Moody's Lowers PDR to 'D-PD' on Bankruptcy Filing
SWIFT ENERGY: Seeks Approval of $75 Million DIP Financing
UNIVERSITY GENERAL: Foundation Healthcare Completes Asset Purchase
WALTER ENERGY: Can Scrap Union Obligations, Judge Rules
WALTER ENERGY: Dominion Provides Update on Bankruptcy Proceedings
WALTER ENERGY: Dominion Resources Terminates Trust Agreement
WASCO INC: ERISA Violation Puts Crimp on Bankruptcy Plan
ZOHAR CDO 2003-1: Patriarch Defends Bid to Tip Zohar to Bankruptcy
*********
ABEL & SONS: Voluntary Chapter 11 Case Summary
----------------------------------------------
Debtor: Abel & Sons, Inc.
7318 Avalon Court
Pasadena, TX 77505
Case No.: 16-30044
Chapter 11 Petition Date: January 4, 2016
Court: United States Bankruptcy Court
Southern District of Texas (Houston)
Judge: Hon. Letitia Z. Paul
Debtor's Counsel: Margaret Maxwell McClure, Esq.
LAW OFFICE OF MARGARET M. MCCLURE
909 Fannin, Suite 3810
Houston, TX 77010
Tel: 713-659-1333
Fax: 713-658-0334
Email: margaret@mmmcclurelaw.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Amin Abel, president.
The Debtor did not include a list of its largest unsecured
creditors when it filed the petition.
ACADIA HEALTHCARE: Moody's Puts B1 CFR Under Review for Downgrade
-----------------------------------------------------------------
Moody's Investors Service placed the ratings of Acadia Healthcare
Company, Inc., including the B1 Corporate Family Rating, under
review for downgrade. This follows the announcement that the
company has signed a definitive agreement to acquire Priory Group
No 3 plc (B2 stable). Priory provides behavioral healthcare
services in the United Kingdom in more than 300 facilities. Acadia
will issue an aggregate 5.363 million shares of its common stock to
the sellers and pay cash consideration of approximately $1.887
billion, including the repayment of Priory's outstanding debt.
Moody's understands that the transaction is expected to close by
Feb. 16, 2016.
These ratings of Acadia have been placed on review for downgrade:
B1 Corporate Family Rating
B1-PD Probability of Default Rating
Ba2 (LGD 2) senior secured credit facilities
B3 (LGD 5) senior notes
Rating affirmed:
SGL-2 Speculative Grade Liquidity Rating
Moody's rating review will focus on the financing package,
including the potential use of additional equity to fund the cash
portion of the consideration, the timing and amount of any expected
synergies, and the company's ability to reduce leverage following
the completion of the transaction. Moody's expects that debt to
EBITDA will initially rise well above 5.0 times. Moody's review
will also consider Acadia's appetite for further debt financed
transactions and risks associated with the company's ability to
successfully integrate future as well recently completed
acquisitions. This is the company's largest transaction to date
and follows the February 2015 acquisition of CRC Health Group for
$1.18 billion.
RATINGS RATIONALE
Acadia's B1 Corporate Family Rating reflects the company's moderate
size, aggressive acquisition strategy, and relatively high
financial leverage. The rating also reflects Moody's assessment of
risks associated with the potential for disruption from ongoing
integration of acquisitions and the still significant reliance on
government reimbursement both in the US (Medicare and Medicaid) and
in the UK (National Health Service). However, Moody's expects
continued earnings and cash flow growth as the company integrates
recent acquisitions and invests in expansion of existing
facilities.
Acadia is a provider of inpatient behavioral health care services
providing psychiatric and chemical dependency services to its
patients in a variety of settings, including inpatient psychiatric
hospitals, residential treatment centers, outpatient clinics and
therapeutic school-based programs. Acadia generated approximately
$1.6 billion in revenue in the twelve months ended September 30,
2015.
The principal methodology used in these ratings was Business and
Consumer Service Industry published in December 2014.
AGFEED USA: Hormel's Bid to Dismiss Suit Granted
------------------------------------------------
Judge Brendan Linehan Shannon of the United States Bankruptcy Court
for the District of Delaware granted with prejudice the motion
filed by Hormel Foods Corporation to dismiss the amended complaint
filed by JLL Consultants, Inc., the Liquidating Trustee for AgFeed
Industries, Inc., and AgFeed USA LLC.
The Liquidating Trustee initiated an adversary proceeding against
Hormel to recover damages that resulted from alleged false
representations made by Hormel in connection with AFI's
pre-petition purchase of the companies that became AgFeed USA LLC
and its domestic affiliates. The Trustee also sought to avoid a
$2.84 million note obligation issued in favor of Hormel by AgFeed
USA Entities. The note was issued pursuant to a Termination and
Settlement agreement entered into on April 1, 2013 between Hormel
and the AgFeed USA entities.
On April 8, 2015, Hormel moved to dismiss the complaint for failure
to state a claim upon which relief can be granted pursuant to Rule
12(b)(6) of the Federal Rules of Civil Procedure, made applicable
to adversary proceedings by Federal Rule of Bankruptcy Procedure
7012.
Judge Shannon concluded that any claim or cause of action that
could be articulated on the facts pled in the Complaint was
released by the commercially standard release provisions contained
in the settlement agreement.
The case is In re: AgFeed USA, LLC, et al, Chapter 11, Debtors. JLL
CONSULTANTS, INC., Plaintiff, v. HORMEL FOODS CORPORATION,
Defendant, Case No. 13-11761 (BLS) Jointly Administered, Adv. No.
14-50942 (BLS) (Bankr. D. Del.).
A full-text copy of Judge Shannon's December 15, 2015 opinion is
available at http://is.gd/wLj1UYfrom Leagle.com.
JLL Consultants is represented by:
Eric Michael Sutty, Esq.
Rafael Xavier Zahralddin-Aravena, Esq.
ELLIOTT GREENLEAF
1105 Market Street, Suite 1700
Wilmington, DE 19801
Tel: (302)384-9400
Fax: (302)384-9399
Email: ems@elliottgreenleaf.com
rxza@elliotgreenleaf.com
Hormel Foods Corporation is represented by:
Terri L. Combs, Esq.
FAEGRE BAKER DANIELS LLP
801 Grand Avenue, 33rd Floor
Des Moines, IA 50309
Tel: (515)248-9000
Fax: (515)248-9010
Email: terri.combs@faegrebd.com
-- and –-
Stephen M. Mertz, Esq.
FAEGRE BAKER DANIELS LLP
2200 Wells Fargo Center
90 S. Seventh Street
Minneapolis, MN 55402
Tel: (612)766-7000
Fax: (612)766-1600
Email: stephen.mertz@faegrebd.com
-- and --
Robert Charles Maddox, Esq.
Robert J. Stearn, Jr.
RICHARDS, LAYTON & FINGER, P.A.
One Rodney Square, 920 North King Street
Wilmington, DE 19801
Tel: (302)651-7700
Fax: (302)651-7701
Email: maddox@rlf.com
stearn@rlf.com
About AgFeed Industries
AgFeed Industries, Inc., has 21 farms and five feed mills in China
producing more than 250,000 hogs annually. In the U.S., the
business included 10 sow farms in three states and two feed mills
producing more than one million hogs a year. AgFeed's revenue in
2012 was $244 million.
AgFeed and its affiliates filed voluntary petitions under Chapter
11 of the Bankruptcy Code (Bankr. D. Del. Case No. 13-11761) on
July 15, 2013, with a deal to sell most of its subsidiaries to The
Maschhoffs, LLC, for cash proceeds of $79 million, absent higher
and better offers. The Debtors estimated assets of at least $100
million and debts of at least $50 million.
Keith A. Maib signed the petition as chief restructuring officer.
Hon. Brendan Linehan Shannon presides over the case. Donald J.
Bowman, Jr., and Robert S. Brady, Esq., at Young, Conaway, Stargatt
& Taylor, serve as the Debtors' counsel. BDA Advisors
Inc. acts as the Debtors' financial advisor. The Debtors' claims
and noticing agent is BMC Group, Inc.
The U.S. Trustee has appointed a five-member official committee of
unsecured creditors to the Chapter 11 cases. The Creditors'
Committee tapped Lowenstein Sandler as lead bankruptcy counsel and
Greenberg Traurig, LLP, as co-counsel. CohnReznick LLP serves as
the Creditors' Committee's financial advisor.
An official committee of equity security holders was also appointed
to the Chapter 11 cases. The Equity Committee tapped Sugar
Felsenthal Grais & Hammer LLP and Elliott Greenleaf as co-counsel.
Jefferies Leveraged Credit Products and Claims Recovery Group are
represented by Lawrence J. Kotler, Esq., and Catherine B.
Heitzenrater, Esq., at Duane Morris, LLP.
AgFeed USA, LLC, et al., notified the Bankruptcy Court that the
Effective Date of the Revised Second Amended Plan of Liquidation
occurred on Nov. 10, 2014.
As reported in the Troubled Company Reporter on Nov. 7, 2014, the
Court confirmed the revised second amended plan, which was
supported by the Official Committee of Equity Security Holders.
ALLEGHENY REAL ESTATE: Voluntary Chapter 11 Case Summary
--------------------------------------------------------
Debtor: Allegheny Real Estate Associates, LLC
PO Box 2092
Norristown, PA 19404
Case No.: 16-10045
Chapter 11 Petition Date: January 4, 2016
Court: United States Bankruptcy Court
Eastern District of Pennsylvania (Philadelphia)
Judge: Hon. Stephen Raslavich
Debtor's Counsel: Jon M. Adelstein, Esq.
ADELSTEIN & KALINER, LLC
Penn's Court
350 South Main Street, Suite 105
Doylestown, PA 18901
Tel: (215) 230-4250
Fax: (215) 230-4251
Email: jma@tradenet.net
jsbamford@tradenet.net
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Robert J. Fluehr, managing member.
The Debtor did not include a list of its largest unsecured
creditors when it filed the petition.
ALVION PROPERTIES: Court Approves Alvion II Step Transaction
------------------------------------------------------------
Judge William V. Altenberger of the U.S. Bankruptcy Court for the
Southern District of Illinois authorized Alvion Properties, Inc.,
to sell real property into a real estate partnership known as
Alvion Properties II, LLC ("Alvion II"), in exchange for 99 of 100
units of Alvion II, and to then sell 98 of its 99 units for
$6,021,270.
The Debtor's motion is supported by the Official Committee of
Unsecured Creditors.
Laura Uberti Hughes, Esq., at Bryan Cave LLP, in St. Louis,
Missouri related that the transaction is not a typical asset
purchase from a debtor's estate by a purchaser, but rather, it is a
"step transaction" under the Internal Revenue Code 721 under which
the vast majority of the Debtor's assets will be transferred
outside of the estate to Alvion II, a non-debtor entity, in
exchange for a 99% membership ownership interest in Alvion II. Ms.
Hughes further related that Alvion II then further transfers the
Debtor's ownership interest to Alvion Investments, LLC
("Purchaser"), whereupon the intended Purchaser then pays the net
sale proceeds to the Debtor. Ms. Hughes contended that it was
highly unusual to allow property of the estate to be transferred
outside of the estate beyond the reach of the Bankruptcy Court
without any consideration being paid at the time of the transfer.
She further contended that the Committee determined that the sale
proceeds appear to be adequate to satisfy all asserted unsecured
claims in full.
Farmers State Bank of Alto Pass told the Court that it had no
objection to the Debtor's Motion as long as the Order approving the
Motion provides that FSB will receive distributions upon closing of
the sale of real property for the amount of its claim plus other
accrued interest, costs and fees.
Judge Altenberger ordered that the proceeds from the sale of the
Debtor's interest in Alvion II be paid directly by the Purchaser to
the Debtor's disbursing agent, Robert Eggmann. Judge Altenberger
further ordered that the following lien holders be paid at closing
and a lien/mortgage release be tendered:
(1) Farmers State Bank of Alto Pass the sum of $1,705,325 in
exchange for a release of their mortgage.
(2) George Howard and SWRR Properties, Inc., the sum of
$2,000,000 in exchange for a release of all liens, encumbrances and
interest in property.
(3) Coffman Law, as attorney and agent for judgment lien
creditors, Berkely Law Technology Group, et al., the sum of
$779,039 in exchange for a release and satisfaction of debt of a
judgment rendered against the Debtor in the amount of $603,325 and
recorded as an attorney lien in Scott County, Virginia.
Case Coal's Objection to the Debtor's Motion
Kip Anderson, owner of Case Coal, wrote Judge Altenberger to
express his objection to the Debtor's Motion, which provides that
Case Coal's lease dated Sept. 12, 2006, be terminated by lessee's
default prepetition. Mr. Anderson related that Case Coal took over
the lease of the Alvion Properties which was held by the Magic
Mountain Coal Co. on April 2, 2004, with the intent to mine the
property. Mr. Anderson asserted that Case Coal has a valid lease.
The Debtor told the Court that Case Coal's lease was terminated
prepetition and that it had sent Case Coal a default letter dated
Oct. 20, 2010 advising Case Coal that it had 20 days to cure its
delinquency in lease payment or the lease would be deemed
cancelled. The Debtor further told the Court that Case Coal did
not cure the delinquency and that the lease was cancelled. The
Debtor asserted that since Case Coal did not have a valid lease, it
does not have standing to object to the sale of the Debtor's real
estate.
Alvion Properties is represented by:
Douglas A. Antonik, Esq.
ANTONIK LAW OFFICES
3405 Broadway
P.O. Box 594
Mt. Vernon, IL 62864
Telephone: (618)244-5739
Facsimile: (618)244-9633
E-mail: antoniklaw@charter.net
Farmers State Bank is represented by:
Nick J. Cirignano, Esq.
ZIEMER, STAYMAN, WEITZEL & SHOULDERS, LLP
P.O. Box 916
Evansville, IN 47706-0916
Telephone: (812)424-7575
E-mail: NCirignano@zsws.com
The Official Committee of Unsecured Creditors is represented by:
Daniel C. Nester, Esq.
Laura Uberti Hughes, Esq.
BRYAN CAVE LLP
One Metropolitan Square
211 N. Broadway, Suite 3600
St. Louis, MO 63102
Telephone: (314)259-2000
Facsimile: (314)259-2020
E-mail: dcnester@bryancave.com
laura.hughes@bryancave.com
- and -
Bradford J. Sandler, Esq.
Shirley S. Cho, Esq.
PACHULSKI STANG ZIEHL & JONES LLP
919 North Market St., 17th Fl.
Wilmington, DE 19801
Telephone: (302)652-4100
Facsimile: (302)652-4400
E-mail: bsandler@pszjlaw.com
scho@pszjlaw.com
About Alvion Properties
Alvion Properties, Inc., is a Virginia corporation formed in 1995
with the placement of real property and mineral rights it owns
today. Alvion owns 1,295 acres of undeveloped land, with
significant coal reserves along with timber and building stone, in
Scott County, Virginia. Alvion also owns an additional 3,219
acres
of mineral rights in property north of its fee simple ownership.
The current stockholders are Harold M. (Jack) Reynolds and Shirley
Medley. Mr. Reynolds owns several entities involved in the coal
business. Shirley and her family also owned coal mines from 1970
to 2010.
Alvion Properties filed a Chapter 11 bankruptcy petition (Bankr.
S.D. Ill. Case No. 15-40462) on May 14, 2015. Karnes Medley, the
president, signed the petition.
The Debtor disclosed total assets of $1 billion and total debts of
$2.7 million in its petition.
Antonik Law Offices serves as the Debtor's counsel.
The meeting of creditors was held on June 17, 2015.
The U.S. trustee overseeing the Chapter 11 case of Alvion
Properties appointed four creditors to serve on the official
committee of unsecured creditors.
AMU HOLD: Voluntary Chapter 11 Case Summary
-------------------------------------------
Debtor: AMU Hold, LLC
615 3rd Avenue, Unit # 2
Decatur, GA 30030
Case No.: 16-50145
Nature of Business: Single Asset Real Estate
Chapter 11 Petition Date: January 4, 2016
Court: United States Bankruptcy Court
Northern District of Georgia (Atlanta)
Debtor's Counsel: Richard K. Valldejuli, Jr., Esq.
VALLDEJULI & ASSOCIATES, LLC
Suite A, 2199 Lenox Road, NE
Atlanta, GA 30324
Tel: (404) 636-9957
Fax: (404) 636-5798
Email: info@valldejuliandassociates.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $100,000 to $500,000
The petition was signed by Haddis Aberra, sole/managing member.
The Debtor did not include a list of its largest unsecured
creditors when it filed the petition.
ATLANTA GREENSPACE: Case Summary & 7 Top Unsecured Creditors
------------------------------------------------------------
Debtor: Atlanta Greenspace Initiative, LLC
295 West Laurel Bluff
Kingsland, GA 31548
Case No.: 16-50257
Chapter 11 Petition Date: January 4, 2016
Court: United States Bankruptcy Court
Northern District of Georgia (Atlanta)
Debtor's Counsel: Paul Reece Marr, Esq.
PAUL REECE MARR, P.C.
300 Galleria Parkway, N.W.
Suite 960, Atlanta, GA 30339
Tel: 770-984-2255
Fax: (770) 984-0044
Email: paul@paulmarr.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Carl M. Drury, III, manager.
A list of the Debtor's seven largest unsecured creditors is
available for free at http://bankrupt.com/misc/ganb16-50257.pdf
ATLAS RESOURCE: S&P Lowers Rating on Sr. Unsecured Debt to 'CCC'
----------------------------------------------------------------
Standard & Poor's Ratings Services said it lowered its issue-level
rating on exploration and production (E&P) company Atlas Resource
Partners L.P.'s senior unsecured debt to 'CCC' from 'CCC+', and
revised the recovery rating to '6' from '5'. The '6' recovery
rating indicates S&P's expectations of negligible (0% to 10%)
recovery in the event of default. The corporate credit rating
remains 'B-'. The outlook is stable.
The downgrade of the senior unsecured rating and recovery rating
revision incorporate S&P's assessment of the Nov. 23, 2015,
reduction of the company's borrowing base on its reserve-based
revolving credit facility to $700 million from $750 million and an
updated estimate of proved reserve value. S&P based its valuation
on a company-provided, third-quarter-2015 PV10 report using its
recovery price deck assumptions of $50 per barrel for West Texas
Intermediate (crude oil and $3.50 per million Btu for Henry Hub
natural gas.
RATINGS LIST
Atlas Resource Partners L.P.
Corp credit rating B-/Stable/--
Rating Lowered; Recovery Rating Revised
To From
Atlas Energy Holdings Operating Co. LLC
Atlas Resource Finance Corp.
Senior unsecured CCC CCC+
Recovery rating 6 5
BACK9NETWORK INC: Bankruptcy Watchdog Questions Borrowing Deal
--------------------------------------------------------------
Katy Stech, writing for The Wall Street Journal's Bankruptcy Beat,
reported that U.S. Trustee William K. Harrington raised concerns
about a potential $2 million loan to off-air golf channel
Back9Network Inc., saying the deal could lead to an unfair,
noncompetitive sale of the channel's smartphone app to several
investors.
According to the report, citing court papers, the U.S. Trustee
protested the borrowing deal, saying the fine print of the
agreement could give an advantage to the lender over other
potential buyers who might want the TV channel's business.
Under the deal, five investors in the channel have proposed to
extend a $2 million loan that could later turn into money for a bid
for Back9Network's smartphone app, which has mapped out more than
35,000 golf courses around the world, the report related. The app
has been downloaded more than three million times and is used for
hundreds of thousands of rounds each month, the report said,
further citing documents filed in U.S. Bankruptcy Court in
Hartford, Conn.
Back9Network Inc. and Swing by Swing Golf, Inc., engaged in the
business of developing and selling media content and information
over the internet, filed Chapter 11 bankruptcy petitions (Bankr.
D.
Conn. Case Nos. 15-22192 and 15-22193, respectively) on Dec. 23,
2015.
The Debtor is represented by Thomas J. Farrell, Esq., and William
S. Fish, Esq., at Hinckley, Allen & Snyder LLP, in Hartford,
Connecticut.
BAILEY HILL: Case Summary & 11 Largest Unsecured Creditors
----------------------------------------------------------
Debtor: Bailey Hill Management,LLC
963 Bailey Hill Road
East Killingly, CT 06243
Case No.: 16-20005
Chapter 11 Petition Date: January 4, 2016
Court: United States Bankruptcy Court
District of Connecticut (Hartford)
Judge: Hon. Ann M. Nevins
Debtor's Counsel: Peter L. Ressler, Esq.
GROOB RESSLER & MULQUEEN, P.C.
123 York Street, Ste 1B
New Haven, CT 06511-0001
Tel: (203) 777-5741
Fax: 203-777-4206
Email: ressmul@yahoo.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Edward R. Eramian, managing member.
A list of the Debtor's 11 largest unsecured creditors is available
for free at http://bankrupt.com/misc/ctb16-20005.pdf
BLACK ELK: Gieger Laborde Files Rule 2019 Statement
---------------------------------------------------
Gieger, Laborde & Laperouse LLC disclosed in a court filing that it
represents these companies in the Chapter 11 case of Black Elk
Energy Offshore Operations LLC:
(1) JX Nippon Oil Exploration (U.S.A.) Limited
5847 San Felipe St. 2800
Houston, TX 77057
(2) Energy XXI GOM, LLC
1021 Main St. 2626
Houston, TX 77002
(3) M21K, LLC
1021 Main St. 2626
Houston, TX 77002
(4) Renaissance Offshore, LLC
920 Memorial City Way
Houston, TX 77024
JX Nippon has an interest in the completion of decommissioning and
plugging and abandonment as a predecessor in title to Black Elk in
certain offshore leases and has a contingent claim against the
company.
Meanwhile, the three other companies are creditors of Black Elk as
a result of joint interest billing debt owing by Black Elk thereto,
the exact amount of which is not yet known, according to the
filing.
Gieger Laborde made the disclosure pursuant to Rule 2019 of the
Federal Rules of Bankruptcy Procedure.
The firm can be reached at:
Gieger, Laborde & Laperouse LLC
Andrew A. Braun, Esq.
Suite 4800, One Shell Square
701 Poydras Street
New Orleans, LA 70130
Telephone: (504) 561-0400
Facsimile: (504) 561-1011
Email: abraun@glllaw.com
-- and --
Lambert M. Laperouse, Esq.
Margaret V. Glass, Esq.
5151 San Felipe, Suite 750
Houston, Texas 77056
Telephone: (832) 255-6000
Facsimile: (832) 255-6001
Email: laperouse@glllaw.com
mglass@glllaw.com
About Black Elk
Black Elk Energy Offshore Operations, LLC, is a Houston, Texas
based privately held limited liability company engaged in the
acquisition, exploitation, development and production of oil and
natural gas properties primarily in the shallow waters of the Gulf
of Mexico near the coast of Louisiana and Texas.
Black Elk had total assets of $339.7 million and total debt of
$432.3 million as of Sept. 30, 2014.
Judge Letitia Z. Paul of the U.S. Bankruptcy Court in the Southern
District of Texas placed Black Elk under Chapter 11 bankruptcy
protection on Sept. 1, 2015, converting an involuntary Chapter 7
bankruptcy petition by its creditors. Thereafter, the Company
filed with the Court a voluntary Chapter 11 petition (Bankr. S.D.
Tex. Case No. 15-34287) on Sept. 10, 2015.
Judge Paul later recused herself from the case and the matter was
given to Judge Marvin Isgur, according to information posted on the
case docket on Sept. 14.
The Debtor is represented by Elizabeth E. Green of Baker &
Hostetler. Blackhill Partners' Jeff Jones is the Debtor's Chief
Restructuring Officer.
BPZ RESOURCES: Plan of Liquidation Takes Effect
-----------------------------------------------
As previously announced, on November 12, 2015, the Bankruptcy Court
entered an order confirming the Company's Second Amended Plan of
Liquidation and Second Amended Disclosure Statement. On December
31, 2015, all conditions to the occurrence of the effective date
set forth in the Plan and the Confirmation Order were satisfied or
waived in accordance therewith and the effective date of the Plan
occurred. On the same date, the Company filed a Notice of
Effective Date of the Plan with the Bankruptcy Court.
In accordance with the Plan, all of the Company's assets have been
transferred to a liquidating trust for the benefit of the Company's
creditors. Gilbert E. Nathan has been appointed as the Liquidation
Trustee for the purpose of liquidation and distributing all of the
Company's remaining assets to holders of allowed claims in
accordance with the terms of the Plan. The Liquidating Trustee's
address is 606 Post Road East, #624; Westport, CT 06880. The Trust
intends to make a distribution of approximately $9mm to holders of
liquidating trust interests on the effective date or as reasonably
practicable thereafter as determined by the Trustee.
As a result of the Plan being effective, all of the Company's
equity interests, consisting of authorized and outstanding shares
of common stock, were cancelled without consideration and have no
value. As soon as practicable and in accordance with the Plan, the
Company's corporate existence will be terminated.
The Company will shortly file a Certification of Termination of
Registration on Form 15 with the Securities and Exchange Commission
for the purpose of terminating the registration of its common stock
under the Securities Exchange Act of 1934, as amended. Upon filing
a Form 15, the Company will immediately cease filing any further
periodic or current reports under the Exchange Act.
About BPZ Resources
BPZ Energy -- http://www.bpzenergy.com/-- is an independent oil
and gas exploration and production company which had license
contracts covering 1.9 million net acres in offshore and onshore
Peru. BPZ Resources maintains an office in Victoria, Texas, and
through its subsidiaries maintains offices in Lima and Tumbes,
Peru, and Quito, Ecuador.
BPZ Resources sought Chapter 11 protection (Bankr. S.D. Tex. Case
No. 15-60016) in Victoria, Texas, on March 9, 2015. The case is
pending before the Honorable David R. Jones. The Debtor disclosed
total assets of $364 million and debt of $275 million.
The Debtor tapped Stroock & Stroock & Lavan LLP as bankruptcy
Counsel; Hawash Meade Gaston Neese & Cicack LLP, as local Texas
Counsel; Houlihan Lokey Capital, Inc., as investment banker;
Opportune LLP, as restructuring advisor; Baker Hostetler, as the
audit committee's special counsel; and Kurtzman Carson Consultants
as claims and noticing agent.
The Official Committee of Unsecured Creditors retained Akin Gump
Strauss Hauer & Feld LLP as legal counsel, and Blackstone Advisory
Partners L.P. as its financial advisor.
* * *
Following an auction on June 30 to July 1, the Debtor won court
approval, and has closed, the sale of its equity interests in its
non-debtor subsidiaries for $8,500,000 to Zedd Energy Holdco Ltd.
The Debtor also sold assets relating to the onshore blocks in
northwestern Peru, all equity interests in the power generation
subsidiary EENE and, subject to Ecuadorian government approval and
applicable rights of first refusal, all equity interests in SMC
Ecuador, Inc., for $750,000 million to Zorritos Peru Holdings,
Inc.
The Debtor on July 30, 2015, won approval to implement a key
employee retention plan and a key employee incentive plan and to
pay severance claims to certain critical employees.
On Sept. 7, 2015, the Debtor and the Committee filed an agreed
order extending the exclusive period to solicit acceptances of a
chapter 11 plan through Oct. 23, 2015. The Court entered the
agreed order on Sept. 8.
The Debtor filed a Plan of Liquidation on Sept. 8, 2015, and then
an Amended Plan on Sept. 25, 2015.
CALIBER PARTNERSHIP: Voluntary Chapter 11 Case Summary
------------------------------------------------------
Debtor: Caliber Partnership I, LLC
c/o Richard Woods
140 Jellico Circle
Southlake, TX 76092
Case No.: 16-40132
Chapter 11 Petition Date: January 4, 2016
Court: United States Bankruptcy Court
Northern District of Texas (Ft. Worth)
Judge: Hon. Mark X. Mullin
Debtor's Counsel: Joyce W. Lindauer, Esq.
JOYCE W. LINDAUER ATTORNEY, PLLC
12720 Hillcrest Road, Suite 625
Dallas, TX 75230
Tel: (972) 503-4033
Fax: (972) 503-4034
Email: joyce@joycelindauer.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Paul A. Garcia, manager.
The Debtor did not include a list of its largest unsecured
creditors when it filed the petition.
CALIFORNIA RURAL: S&P Lowers Rating on 2006 Bonds to 'D'
--------------------------------------------------------
Standard & Poor's Ratings Services lowered its rating to 'D' from
'CC' on the California Rural Home Mortgage Finance Authority
Homebuyer's Fund senior and subordinate bonds, series 2006 FH-1.
The outlook is not meaningful.
A notice of event of default and acceleration was sent to the
issuer on Aug. 26, 2014, due to uncured events of default. As of
that date, the principal of bonds outstanding and the accrued
interest were immediately due and payable.
"The 'D' rating on the bonds reflects the event of default and the
declaration of acceleration on the bonds," said Standard & Poor's
credit analyst Jose Cruz.
CANYON PORTAL: Hires Stinson Leonard as Counsel
-----------------------------------------------
Canyon Portal II, LLC, is seeking permission from the Bankruptcy
Court to employ Stinson Leonard Street, LLP as its bankruptcy
counsel.
The Debtor proposes to employ Stinson Leonard to render the
following services:
(a) advise the Debtor with respect to its powers and duties as
debtor-in-possession in the continued management of its
business and property;
(b) attend meetings and negotiate with representatives of
creditors and other parties-in-interest and advise and
consult on the conduct of the Chapter 11 case, including
all the legal and administrative requirements of operating
in Chapter 11;
(c) assist the Debtor with the preparation of its Schedules of
Assets and Liabilities and Statement of Financial Affairs;
(d) advise the Debtor in connection with any contemplated sales
of assets or business combinations, formulate and implement
appropriate procedures with respect to the closing of any
such transactions, and counsel the Debtor in connection with
such transactions;
(e) advise the Debtor in connection with any post-petition
financing and cash collateral arrangements and negotiate
and draft related documents, provide advice and counsel with
respect to prepetition financing agreements and their
possible restructuring;
(f) advise the Debtor on matters relating to the assumption,
rejection, or assignment of unexpired leases and executory
contracts;
(g) advise the Debtor with respect to legal issues arising in or
relating to the Debtor's ordinary course of business
including attendance at senior management meetings,
meetings with the Debtor's financial and restructuring
advisors and meetings of the board of directors;
(h) take all necessary action to protect and preserve the
Debtor's estate, including the prosecution of actions on its
behalf, the defense of any actions commenced against it,
negotiations concerning all litigation in which the Debtor
is involved, and objecting to claims filed against the
Debtor's estate;
(i) prepare, on the Debtor's behalf, all motions, applications,
answers, orders, reports, and papers necessary to the
administration of the estate;
(j) negotiate and prepare, on the Debtor's behalf, a Chapter 11
plan, related disclosure statement, and all related
agreements and documents and taking any necessary action
on the Debtor's behalf to obtain confirmation of that plan;
(k) attend meetings with creditors and other third parties and
participate in negotiations with respect to the above
matters;
(l) appear and advance the Debtor's interests before this Court,
any appellate courts, and the US Trustee; and
(m) perform all other necessary legal services and provide all
other necessary legal advice to the Debtor in connection
with this Chapter 11 case.
The Debtor seeks to employ Stinson Leonard on an hourly basis at
rates consistent with those Stinson Leonard routinely charges in
comparable matters. Presently, the hourly rates for Stinson
Leonard paralegals and lawyers range between $210 and $700.
Stinson Leonard holds $5,759 in trust for the Debtor from funds
received prior to the Petition Date.
Stinson Leonard intends to apply to the Court for allowance of
compensation for professional services rendered and reimbursement
expenses.
To the best of the Debtor's knowledge, Stinson Leonard does not
hold or represent an interest adverse to its estate and is a
"disinterested person," as that term is defined in Bankruptcy Code
Section 101(14) and modified by Section 1107(b).
About Canyon Portal II
Canyon Portal II, LLC filed a Chapter 11 bankruptcy petition
(Bankr. D. Ariz. Case No. 15-16313) on Dec. 31, 2015. The petition
was signed by Al Spector as manager. The Debtor disclosed total
assets of $29.55 million and total debts of $22.62 million.
Stinson Leonard Street LLP represents the Debtor as counsel. Judge
Eddward P. Ballinger Jr. has been assigned the case.
CANYON PORTAL: Section 341 Meeting Scheduled for Feb. 2
-------------------------------------------------------
A meeting of creditors in the bankruptcy case of Canyon Portal II,
LLC will be held on Feb. 2, 2016, at 9:00 a.m. at US Trustee
Meeting Room, 230 N. First Avenue, Suite 102, Phoenix, Arizona.
This is the first meeting of creditors required under Section
341(a) of the Bankruptcy Code in all bankruptcy cases.
All creditors are invited, but not required, to attend. This
meeting of creditors offers the one opportunity in a bankruptcy
proceeding for creditors to question a responsible office of the
Debtor under oath about the company's financial affairs and
operations that would be of interest to the general body of
creditors.
About Canyon Portal II
Canyon Portal II, LLC filed a Chapter 11 bankruptcy petition
(Bankr. D. Ariz. Case No. 15-16313) on Dec. 31, 2015. The petition
was signed by Al Spector as manager. The Debtor disclosed total
assets of $29.55 million and total debts of $22.62 million.
Stinson Leonard Street LLP represents the Debtor as counsel. Judge
Eddward P. Ballinger Jr. has been assigned the case.
CANYON PORTAL: Seeks Approval of $85,000 DIP Financing
------------------------------------------------------
Canyon Portal II, LLC, seeks permission from the Bankruptcy Court
to obtain $85,000 in post-petition financing from Barrett Realty,
LLC. Barrett Realty is owned indirectly, by Al Spector, the
holder, directly and indirectly, of 100% of the equity interests in
the Debtor. The Company said proceeds of the DIP Facility will be
used to pay the approved fees and costs of its estate
professionals.
According to the Debtor, it has cash on hand of approximately
$51,546 as of the Petition Date.
The Loan has a non-default interest rate of 5% per annum and will
be payable on the Due Date. The default rate of interest will be
8% per annum.
The Loan would be due and payable on the occurrence of the "Due
Date," which would be the earliest to occur of (i) the date that is
six months after the commencement of the Debtor's Bankruptcy Case;
(ii) the substantial consummation of a plan of reorganization that
is confirmed pursuant to an order of the Court, (iii) the date on
which the Court enters a final order approving a post-petition
financing.
The DIP Facility is an unsecured loan. The Lender will have an
allowed administrative priority claim for advances under Bankruptcy
Code.
About Canyon Portal II
Canyon Portal II, LLC filed a Chapter 11 bankruptcy petition
(Bankr. D. Ariz. Case No. 15-16313) on Dec. 31, 2015. The petition
was signed by Al Spector as manager. The Debtor disclosed total
assets of $29.55 million and total debts of $22.62 million.
Stinson Leonard Street LLP represents the Debtor as counsel. Judge
Eddward P. Ballinger Jr. has been assigned the case.
CANYON PORTAL: Wants to Use C-III's Cash Collateral
---------------------------------------------------
Canyon Portal II, LLC, seeks Bankruptcy Court's authority to use
cash collateral from its leasing operations in which C-III Asset
Management LLC may have an interest. The Debtor intends to use the
cash collateral to pay its operating and other expenses.
On or about Dec. 15, 2005, the Debtor procured a loan from J.P.
Morgan Chase, N.A. in the original principal amount of $21,000,000.
U.S. Bank National Association, as Trustee, successor-in-interest
to Bank of America, National Association, successor by merger to
LaSalle Bank National Association, as trustee for the registered
holders of J. P. Morgan Chase Commercial Mortgage Securities Trust
2006-CIBC14, Commercial Mortgage Pass-Through Certificates, Series
2006-CIBC14 (the "Noteholder") is the current owner and holder of
the Mortgage Loan evidenced, secured and governed by various
documents.
C-III is the special servicer for the Noteholder. The Debtor
believes that C-III's asserted secured claim as of the Petition
Date is approximately $22,314,000.
The parties currently have a dispute as to the Noteholder's charge
of $319,732 in allegedly accrued interest. The Debtor said it has
been unable to obtain any justification for the interest charges
from the Noteholder.
The Debtor proposes to provide adequate protection to C-III by
providing adequate protection payments to C-III in the form of
monthly interest payments at the non-default rate of interest
as provided for in the Loan Documents.
About Canyon Portal II
Canyon Portal II, LLC filed a Chapter 11 bankruptcy petition
(Bankr. D. Ariz. Case No. 15-16313) on Dec. 31, 2015. The petition
was signed by Al Spector as manager. The Debtor disclosed total
assets of $29.55 million and total debts of $22.62 million.
Stinson Leonard Street LLP represents the Debtor as counsel. Judge
Eddward P. Ballinger Jr. has been assigned the case.
CAPITAL CHRISTIAN: Case Summary & 7 Largest Unsecured Creditors
---------------------------------------------------------------
Debtor: Capital Christian Center
dba C5 Church
1600 Snyder Avenue
Carson City, NV 89701
Case No.: 16-50004
Chapter 11 Petition Date: January 4, 2016
Court: United States Bankruptcy Court
District of Nevada (Reno)
Judge: Hon. Bruce T. Beesley
Debtor's Counsel: Kevin A. Darby, Esq.
DARBY LAW PRACTICE, LTD.
4777 Caughlin Pkwy
Reno, NV 89519
Tel: (775) 322-1237
Fax: (775) 996-7290
Email: kad@darbylawpractice.com
Estimated Assets: $0 to $50,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Stanley E. Friend, president.
A list of the Debtor's seven largest unsecured creditors is
available for free at http://bankrupt.com/misc/nvb16-50004.pdf
CAR FUEL #1: Voluntary Chapter 11 Case Summary
----------------------------------------------
Debtor: Car Fuel #1, Incorporated
914 Clinton Street
Philadelphia, PA 19107
Case No.: 16-10048
Nature of Business: Single Asset Real Estate
Chapter 11 Petition Date: January 4, 2016
Court: United States Bankruptcy Court
Eastern District of Pennsylvania (Philadelphia)
Judge: Hon. Magdeline D. Coleman
Debtor's Counsel: Thomas Daniel Bielli, Esq.
BIELLI & KLAUDER, LLC
1500 Walnut Street, Suite 900
Philadelphia, PA 19102
Tel: 215-642-8271
Fax: 215-754-4177
Email: tbielli@bk-legal.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Louis Lanni, president.
The Debtor did not include a list of its largest unsecured
creditors when it filed the petition.
CHRISTIAN FAMILY CHURCH: Case Summary & 8 Top Unsecured Creditors
-----------------------------------------------------------------
Debtor: Christian Family Church International, Inc.
430 Center St
Jupiter, FL 33458
Case No.: 16-10048
Chapter 11 Petition Date: January 4, 2016
Court: United States Bankruptcy Court
Southern District of Florida (West Palm Beach)
Judge: Hon. Erik P. Kimball
Debtor's Counsel: Norman L. Schroeder II, Esq.
NORMAN L. SCHROEDER, II PA
6803 Lake Worth Rd #306
Lake Worth, FL 33467
Tel: 561-642-8884
Fax: 561-642-3377
Email: nschroeder@nlsbankruptcy.com
Total Assets: $1.99 million
Total Liabilities: $4.74 million
The petition was signed by Steven Barry, director.
A list of the Debtor's eight largest unsecured creditors is
available for free at http://bankrupt.com/misc/flsb16-10048.pdf
CHS/COMMUNITY HEALTH: Moody's Affirms B1 CFR, Outlook Negative
--------------------------------------------------------------
Moody's Investors Service changed the rating outlook of
CHS/Community Health Systems, Inc. to negative from stable.
Moody's also affirmed Community's existing ratings, including the
company's B1 Corporate Family Rating, B1-PD Probability of Default
Rating and SGL-2 Speculative Grade Liquidity Rating.
The change in the rating outlook reflects Moody's expectation that
the company will continue to operate with very high financial
leverage. Improvements at facilities acquired in the 2014 Health
Management Associates transaction have been difficult and will
continue to delay anticipated EBITDA growth. Further, Community
faces ongoing investigations by the Department of Justice. The
company has accrued for a possible settlement but there may be
required cash outlays in the near term. Finally, while the
proposed spin-off of Quorum Health Corporation will focus
Community's operations in higher growth markets, Moody's does not
expect it to result in a reduction of leverage.
The affirmation of Community's B1 Corporate Family Rating reflects
Moody's expectation that the company will begin to see improvement
in its operations as practices of newly recruited physicians mature
and operational improvements drive volume growth at the company's
facilities. However, the leverage declines that Moody's
anticipates will be reliant on EBITDA growth as free cash flow
available to repay debt will be limited. The affirmation of the
Speculative Grade Liquidity Rating at SGL-2 reflects Moody's
expectation that the company will maintain good liquidity.
Community's liquidity profile will be characterized by growing free
cash flow, a considerable cash balance, availability under its
revolving credit facility and no significant near term maturities.
These ratings are affirmed.
Corporate Family Rating at B1
Probability of Default Rating at B1-PD
Senior secured bank credit facilities at Ba2 (LGD 2)
Senior secured notes at Ba2 (LGD 2)
Senior unsecured notes at B3 (LGD 5)
Speculative Grade Liquidity Rating at SGL-2
The rating outlook is negative.
RATINGS RATIONALE
Community's B1 Corporate Family Rating reflects Moody's expectation
that the company will continue to reduce financial leverage through
EBITDA growth and refrain from debt financed acquisitions and share
repurchases. Also supporting the rating is Moody's acknowledgment
of Community's large scale and strong market presence, which will
remain significant even after the planned spin-off of 38 facilities
and a hospital management business into Quorum. Moody's
anticipates that the company will continue to see stable to
improving margin performance in the near term from a combination of
operational improvements and additional synergies from the
acquisition of HMA.
The negative rating outlook reflects Moody's view that the company
has limited ability to absorb negative developments at the current
rating level given its high financial leverage. Moody's also
expects that leverage will remain high in the near term as the
proposed spin-off of Quorum will be leverage neutral due to the
loss of EBITDA associated with the divested facilities.
If the company is not able to meaningfully reduce debt to EBITDA to
close to 5.0 times over the next 12 to 18 months, Moody's could
downgrade the ratings. Additionally, a significant debt-financed
acquisition, share repurchase or adverse developments beyond
Moody's expectations related to ongoing investigations or
litigation that negatively impact liquidity could result in a
downgrade of the ratings.
Given high financial leverage, Moody's does not expect an upgrade
of Community's ratings in the near term. However, Moody's could
upgrade the ratings if financial leverage is materially reduced and
cash flow coverage of debt metrics improve. Specifically, if
Community is able to achieve and sustain adjusted debt to EBITDA
close to 4.0 times, the ratings could be upgraded.
CHS/Community Health Services, Inc., headquartered in Franklin,
Tennessee, is an operator of general acute care hospitals in
non-urban and mid-sized markets throughout the US. Community
recognized approximately $19.5 billion in revenue for the twelve
months ended Sept. 30, 2015.
The principal methodology used in these ratings was Business and
Consumer Service Industry published in December 2014.
CJB ALURA POINT: Voluntary Chapter 11 Case Summary
--------------------------------------------------
Debtor: CJB Alura Point, LLC
P.O. Box 801804
Dallas, TX 75380
Case No.: 16-30088
Chapter 11 Petition Date: January 4, 2016
Court: United States Bankruptcy Court
Northern District of Texas (Dallas)
Judge: Hon. Stacey G. Jernigan
Debtor's Counsel: Dennis Oliver Olson, Esq.
OLSON, NICOUD & GUECK, LLP
Meadow Park Tower
10440 N. Central Expwy, Suite 1100
Dallas, TX 75231
Tel: (214) 979-7300
Fax: (214) 979-7301
Email: denniso@dallas-law.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Christian Briggs, president.
The Debtor did not include a list of its largest unsecured
creditors when it filed the petition.
COASTAL FORKLIFT: Case Summary & 20 Largest Unsecured Creditors
---------------------------------------------------------------
Debtor: Coastal Forklift and Hydraulics, Inc.
1283 U.S. Highway 84
Blackshear, GA 31516
Case No.: 16-50004
Chapter 11 Petition Date: January 4, 2016
Court: United States Bankruptcy Court
Southern District of Georgia (Waycross)
Debtor's Counsel: Paul A. Schofield, Esq.
THE SCHOFIELD LAW FIRM, P.C.
P.O. Box 389
Brunswick, GA 31521
Tel: 912-275-7018
Fax: 912-275-7019
Email: cmecf@schofieldlawfirm.com
Estimated Assets: $0 to $50,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by James E. Folker, Jr., president.
A list of the Debtor's 20 largest unsecured creditors is available
for free at http://bankrupt.com/misc/gasb16-50004.pdf
COLLIER HILLS: Case Summary & 19 Largest Unsecured Creditors
------------------------------------------------------------
Debtor: Collier Hills Dental, PC
857 Collier Road #14
Atlanta, GA 30318
Case No.: 16-50083
Chapter 11 Petition Date: January 4, 2016
Court: United States Bankruptcy Court
Northern District of Georgia (Atlanta)
Debtor's Counsel: Ian M Falcone, Esq.
THE FALCONE LAW FIRM PC
363 Lawrence Street
Marietta, GA 30060
Tel: (770) 426-9359
Email: attorneys@falconefirm.com
Total Assets: $881,954
Total Liabilities: $1.65 million
The petition was signed by Walker J. Love, president.
A list of the Debtor's 19 largest unsecured creditors is available
for free at http://bankrupt.com/misc/ganb16-50083.pdf
COYNE INTERNATIONAL: Can Use Cash Collateral Until Feb. 26
----------------------------------------------------------
Coyne International Enterprises Corp. sought and obtained from
Judge Margaret Cangilos-Ruiz of the U.S. Bankruptcy Court for the
Northern District of New York authorization to use cash collateral
through Feb. 26, 2016.
Judge Cangilos-Ruiz ordered the amendment of the Final Cash
Collateral Order to provide for the use of Cash Collateral through
Feb. 26, 2016, at which time, pursuant to a separate Court Order,
the Case will be converted to a case under Chapter 7 of the
Bankruptcy Code.
The Debtor contended that the orderly liquidation of its remaining
assets, which are located throughout the Debtor's plants and
associated service centers in Bristol, Tennessee; Buffalo, New
York; Cleveland, New York; York, Pennsylvania; and Syracuse, New
York, is contemplated to be completed by the end of February 2016,
although there may still be some real estate to be sold after that
date. The Debtor believed that the liquidation and wind-down plan
that it has prepared in consultation with its advisors represents
the best chance for the Debtor to maximize the value of the
remaining assets and minimize expenses.
Judge Cangilos-Ruiz asserts that the terms of her Order have been
negotiated in good faith and at arm's length, and reflect the
additional consent of Prepetition Junior Agent, Medley Opportunity
Fund II LP, in respect of the use of Cash Collateral.
Coyne International Enterprises Corp. is represented by:
Robert L. Rattet, Esq.
Stephen B. Selbst, Esq.
HERRICK, FEINSTEIN LLP
2 Park Avenue
New York, NY 10016
Telephone: (212)592-1400
E-mail: rrattet@herrick.com
sselbst@herrick.com
hhuynh@herrick.com
About Coyne International
Coyne International Enterprises Corp. filed a Chapter 11 bankruptcy
petition (Bankr. N.D.N.Y. Case No. 15-31160) on
July 31, 2015. The petition was signed by Mark Samson as CEO.
Herrick Feinstein LLP serves as the Debtor's general counsel.
Phillips Lytle LLP acts as the Debtor's local bankruptcy counsel.
Cohnreznick LLP is the Debtor's financial advisor. SSG Capital
Advisors LLC is the Debtor's investment banker. Rust Omni serves
the Debtor as claims and administrative agent. Raab, Sturm &
Ganchrow, LLP acts as labor counsel to the Debtor. Harbridge
Consulting Group, LLC serves as the Debtor's pension consultant.
Beveridge & Diamond PC is the Debtor's environmental counsel. GZA
Geoenvironmental, Inc. serves as the Debtor's environmental
consultant.
COYNE INTERNATIONAL: Court OKs Auction of Remaining Assets
----------------------------------------------------------
Judge Margaret Cangilos-Ruiz of the U.S. Bankruptcy Court for the
Northern District of New York, authorized Coyne International
Enterprises Corp. to auction substantially all of its personal
property primarily consisting of the Debtor's equipment and owned
vehicles, as well as certain of its owned real property assets,
used in its operations ("Remaining Assets").
Judge Cangilos-Ruiz authorized the Debtor, through the Auctioneer
as its agent, to sell, by private sale or at the Auction, the
Remaining Assets free and clear of all liens, claims, encumbrances
and interests, with any such liens, claims, encumbrances or
interests to attach to the proceeds of the sale to the same
validity and priority as they attached to the Remaining Assets.
Judge Cangilos-Ruiz ordered that all the proceeds of the sale,
other than proceeds allocated to the Debtor's vehicles, be (a)
segregated by the Debtor upon receipt from Auctioneer subject to
the security interests of Medley Opportunity Fund II, LP
("Medley"), and (b) subject to and applied in accordance with the
Final Order Authorizing Debtor to: (A) Use Cash Collateral and(B)
Grant Adequate Protection and Provide Security and Other Relief to
Prepetition Secured Parties.
Judge Cangilos-Ruiz further ordered that a minimum of $300,000 of
sale proceeds be allocable to the sale of the Debtor's vehicles.
She added that if the Auction results in a bid that exceeds the
Guaranteed Price, as defined in the Debtor's Motion, the Debtor,
Medley, and the Committee will negotiate in good faith the
allocation of such bid to the purchase price of the Debtor’s
vehicles in excess of this minimum allocation.
The State of New York, on behalf of the New York State Department
of Environmental Conservation and the New York Environmental
Protection and Spill Compensation Fund objected to the Debtor's
Motion and requested that the Court make clear that the purchase of
any contaminated property under Section 363 of the Bankruptcy Code
is not free and clear of the environmental liability or compliance
obligations of the Debtor or any subsequent asset purchaser, as
owners or operators of property, and does not impair the police and
regulatory authority of any governmental entity under applicable
state and federal environmental laws with respect to the assets
transferred.
Judge Cangilos-Ruiz contended that nothing in her Order releases,
nullifies, precludes or enjoins the enforcement of any
environmental liability to a governmental unit arising as a result
of an entity’s status as the owner or operator of property after
the date of entry of this Order. She further contended that
nothing in her Order should be interpreted to deem any purchaser of
any Remaining Asset to be the successor to the Debtor under any
state or federal law successor liability doctrine with respect to
any police or regulatory liability for penalties for days of
violation prior to entry of the Order. She added that nothing in
the Order authorizes the transfer or assignment of any federal or
state environmental (a) license, (b) permit, (c) registration, (d)
authorization, or (e) approval, or the discontinuation of any
obligation thereunder, without compliance with all applicable legal
requirements under environmental law.
The State of New York, on behalf of the New York State Department
of Environmental Conservation and the New York Environmental
Protection and Spill Compensation Fund, is represented by:
Stacey M. Metro, Esq.
OFFICE OF THE ATTORNEY GENERAL
The Capitol
Albany, NY 12224
Telephone: (518)776-2218
About Coyne International Enterprises
Coyne International Enterprises Corp. filed a Chapter 11 bankruptcy
petition (Bankr. N.D.N.Y. Case No. 15-31160) on
July 31, 2015. The petition was signed by Mark Samson as CEO.
Herrick Feinstein LLP serves as the Debtor's general counsel.
Phillips Lytle LLP acts as the Debtor's local bankruptcy counsel.
Cohnreznick LLP is the Debtor's financial advisor. SSG Capital
Advisors LLC is the Debtor's investment banker. Rust Omni serves
the Debtor as claims and administrative agent. Raab, Sturm &
Ganchrow, LLP acts as labor counsel to the Debtor. Harbridge
Consulting Group, LLC serves as the Debtor's pension consultant.
Beveridge & Diamond PC is the Debtor's environmental counsel. GZA
Geoenvironmental, Inc., serves as the Debtor's environmental
consultant.
DDS HOSPITALITY: Voluntary Chapter 11 Case Summary
--------------------------------------------------
Debtor: DDS Hospitality, LLC
dba La Kiva Hotel
2501 I-40 East
Amarillo, TX 79104
Case No.: 16-20001
Nature of Business: Single Asset Real Estate
Chapter 11 Petition Date: January 4, 2016
Court: United States Bankruptcy Court
Northern District of Texas (Amarillo)
Judge: Hon. Robert L. Jones
Debtor's Counsel: Bill Kinkead, Esq.
KINKEAD LAW OFFICES
6937 Bell St., Suite G
Amarillo, TX 79109
Tel: 806-353-2129
Fax: 806-353-4370
Email: bkinkead713@hotmail.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Sam David, managing member.
The Debtor did not include a list of its largest unsecured
creditors when it filed the petition.
ELM UPTOWN ACQUISITION: Case Summary & 7 Top Unsecured Creditors
----------------------------------------------------------------
Debtor: Elm Uptown Acquisition, LLC
4325 Dean Martin Drive, Unit 340
Las Vegas, NV 89103
Case No.: 16-10008
Chapter 11 Petition Date: January 4, 2016
Court: United States Bankruptcy Court
District of Nevada (Las Vegas)
Debtor's Counsel: Samuel A. Schwartz, Esq.
SCHWARTZ FLANSBURG PLLC
6623 Las Vegas Blvd. SO., Ste 300
Las Vegas, NV 89119
Tel: (702) 385-5544
Fax: (702) 385-2741
Email: sam@nvfirm.com
Estimated Assets: $0 to $50,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Scott C. Morgan, member.
A list of the Debtor's seven largest unsecured creditors is
available for free at http://bankrupt.com/misc/nvb16-10008.pdf
ESP RESOURCES: Admits Limited Capital, Raises Going Concern Doubt
-----------------------------------------------------------------
ESP Resources, Inc. says existing capital resources may not be
adequate for it to execute its business plan, raising substantial
doubt about its ability to continue as a going concern, according
to David Dugas, chief executive officer, director and chief
financial officer of the company, in a regulatory filing with the
U.S. Securities and Exchange Commission on November 18, 2015.
At September 30, 2015, the company had cash and cash equivalents of
$105,882 and a working capital deficit of $6,819,054. "The company
believes that its existing capital resources may not be adequate to
enable it to execute its business plan," Mr. Dugas pointed out.
"These conditions raise substantial doubt as to the company's
ability to continue as a going concern."
Mr. Dugas further noted, "The company estimates that based on its
current operating plan and condition, it will require additional
cash resources during 2015 and 2016.
"The company's ability to continue as a going concern is dependent
on its ability to raise the required additional capital or debt
financing to meet short and long-term operating requirements. The
company believes that future private placements of equity capital
and debt financing are needed to fund our long-term operating
requirements. The company may also encounter business endeavors
that require significant cash commitments or unanticipated problems
or expenses that could result in a requirement for additional cash.
If the company raises additional funds through the issuance of
equity or convertible debt securities, the percentage ownership of
current shareholders could be reduced, and such securities might
have rights, preferences or privileges senior to the company's
common stock. Additional financing may not be available upon
acceptable terms, or at all. If adequate funds are not available
or are not available on acceptable terms, the company may not be
able to take advantage of prospective business endeavors or
opportunities, which could significantly and materially restrict
our operations. The company is continuing to pursue external
financing alternatives to improve our working capital position. If
the company is unable to obtain the necessary capital, the company
may have to cease operations."
At September 30, 2015, the company had total assets of $4,083,355,
total liabilities of $9,554,714, and total stockholders' deficit of
$5,471,359.
The company incurred a net loss of $590,263 for the three months
ended September 30, 2015, compared to a net loss of $734,025 for
the same period in 2014. The company's net loss decreased by
$143,762 for the three months ended September 30, 2015, as compared
to the net loss from continued operations for the same period in
2014.
A full-text copy of the company's quarterly report is available for
free at: http://tinyurl.com/jvfdchq
Lafayette, Louisiana-based ESP Resources, Inc. is a manufacturer,
distributor and marketer of specialty chemicals and supply
specialty chemicals for a range of oil and gas field applications,
including killing bacteria, separating suspended water and other
contaminants from crude oil and separating oil from gas. The
company also offers analytical services and custom-blended
chemicals for oil and gas wells.
EZJR INC: Losses, Lack of Liquidity Cast Going Concern Doubt
------------------------------------------------------------
EZJR, Inc.'s independent registered public accounting firm
expressed an opinion on its consolidated financial statements for
the year ended December 31, 2014, which included an explanatory
paragraph indicating that there is substantial doubt about the
company's ability to continue as a going concern due to the
company's recurring losses and its lack of liquidity, according to
Barry Hall, executive chairman and chief financial officer of the
company, in a regulatory filing with the U.S. Securities and
Exchange Commission on November 18, 2015.
Mr. Hall related, "From inception (April 12, 2011) through
September 30, 2015, the company had an accumulated deficit of
$15,445,448, however at September 30, 2015 the company also had
total stockholder's equity of $3,936,029.
"Additionally, the company has achieved operating profit for the
past four fiscal quarters. However, at this time there can be no
assurance that the company will continue to be profitable.
"Additionally, management is in the process of developing an
operating plan to continue to grow the company's business and such
a plan may require additional capital financing."
At September 30, 2015, the company had total assets of $4,873,708,
total liabilities of $937,680 and total stockholders' equity of
$3,936,029.
The company posted a net income of $120,849 for the three months
ended September 30, 2015, compared to a net loss of $354,483 for
the three months ended September 30, 2014.
A full-text copy of the company's quarterly report is available for
free at: http://tinyurl.com/ztkrlhy
Las Vegas-based EZJR, Inc. aims to improve the sales performance of
brands, products and services through its eCommerce platform.
Pursuant to a marketing and selling agreement with Her Holdings,
Inc., a retailer of human hair extensions marketed as Her Imports,
in 2014, the company sells Her Imports products online and in store
locations throughout the U.S.
FJK PROPERTIES: Court Approves Holyfield & Thomas as Accountant
---------------------------------------------------------------
FJK Properties, Inc. sought and obtained permission from the Hon.
Paul G. Hyman, Jr. of the U.S. Bankruptcy Court for the Southern
District of Florida to employ David J. Thomas, CPA and Holyfield &
Thomas LLC as financial advisor and accountant.
The Debtor requires Mr. Thomas and Holyfield & Thomas to:
-- prepare required tax returns and reports;
-- prepare compilations of the Debtor-in-Possession's books as
needed;
-- prepare financial statement;
-- prepare Debtor-in-Possession Reports and other required
accounting services; and
-- provide advice on issues regarding operations of the office
building and other required accounting services.
Holyfield & Thomas have agreed to accept compensation of:
-- $260 per hour for Partners;
-- $240 per hour for Tax Managers;
-- $160 per hour for Senior Accountants; and
-- $100 per hour for Staff Accountants;
-- plus $4,000 to prepare the 2010 Form 1120-S return;
-- $4,200 to prepare the 2011 Form 1120-S return;
-- $4,410 to prepare the 2012 Form 1120-S return;
-- $4,630 to prepare the 2013 Form 1120-S return;
-- $4,860 to prepare the 2014 Form 1120-S return, plus
necessary and actual expenses from the bankruptcy estate
pursuant to the provisions of the Bankruptcy Code.
Holyfield & Thomas will also be reimbursed for reasonable
out-of-pocket expenses incurred.
David J. Thomas assured the Court that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code and does not represent any interest adverse to the Debtors and
their estates.
Holyfield & Thomas can be reached at:
David J. Thomas
HOLYFIELD & THOMAS, LLC
125 Butler Street
West Palm Beach, FL 33407
Tel: (561) 689-6000
E-mail: djthomas@ht-cpa.com
About FJK Properties
FJK Properties Inc. filed a Chapter 11 bankruptcy petition (Bankr.
S.D. Fla. Case No. 15-19494) on May 26, 2015. The Debtor tapped
Robert C. Furr and the law firm Furr and Cohen, P.A., as its
counsel. Hon. Paul G. Hyman, Jr., is assigned to the case.
FJK PROPERTIES: Court Okays Holliday Fenoglio as Exclusive Agent
----------------------------------------------------------------
FJK Properties, Inc. sought and obtained permission from the Hon.
Paul G. Hyman, Jr. of the U.S. Bankruptcy Court for the Southern
District of Florida to employ Manuel de Zarraga and Holliday
Fenoglio Fowler, L.P. as exclusive agent to sell the Debtor's
property located at 230 Royal Palm Way, Palm Beach, FL, Lot 39 and
40, Block E, Royal Park Addition.
The Debtor requires the broker to:
(a) determine marketing strategy;
(b) prepare marketing materials;
(c) list and market the Property;
(d) prepare due diligence information;
(e) assist in deal negotiations;
(f) negotiate any offers made to purchase the Property; and
(g) assist in transaction closing.
Broker has agreed to accept a commission of 2.5% of the total gross
purchase price, plus an incentive fee equal to 3% of any portion of
the Gross Purchase Price in excess of $22,000,000. The Listing
Agreement provides for a Carve Out Buyer as it relates to George
Wright/Whitehall Hotel and Resorts and/or Affiliates; Summit
Development LLC and Affiliates; and FRI Investors, Inc., Michael
McCloskey and Tom Quick.
If the Debtor sells the Property to a Carve-Out Buyer pursuant to a
binding Purchase and Sale Agreement entered into prior to Broker
commencing its marketing efforts then the Success Fee shall equal
$50,000 plus reimbursement of actual incurred expenses. If Debtor
sells the Property to a Carve-Out Buyer pursuant to a binding
purchase and sale agreement entered into after the Broker commences
its marketing efforts but before the call for offer date, the
Success Fee will equal 70% of what would have been if Property had
been sold to a group other than a Carve-Out Buyer, plus
reimbursement of actual expenses. In the event PJC Holdings or
Peter Callahan or its assignee take title to the Property, by deed
in lieu of foreclosure, there shall be no Success Fee payable.
The listing agreement provides for marketing expenses and expense
reimbursement of $10,000 for out-of-pocket costs and expenses
reasonably incurred in the preparation of offering materials,
photographs, graphics, third party marketing reports, marketing,
mailing or required travel, and assisting in the closing of the
sale.
Manuel de Zarraga, executive managing director of Holliday
Fenoglio, assured the Court that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code and does not represent any interest adverse to the Debtors and
their estates.
Holliday Fenoglio can be reached at:
Manuel de Zarraga
HOLLIDAY FENOGLIO FOWLER, L.P.
1450 Brickell Avenue, Ste. 2950
Miami, FL 33131
Tel: (305) 448-1333
About FJK Properties
FJK Properties Inc. filed a Chapter 11 bankruptcy petition (Bankr.
S.D. Fla. Case No. 15-19494) on May 26, 2015. The Debtor tapped
Robert C. Furr and the law firm Furr and Cohen, P.A., as its
counsel. Hon. Paul G. Hyman, Jr., is assigned to the case.
FJK PROPERTIES: Hires McDonald Hopkins as Real Estate Counsel
-------------------------------------------------------------
FJK Properties, Inc. seeks authorization from the Hon. Paul G.
Hyman, Jr. of the U.S. Bankruptcy Court for the Southern District
of Florida to employ Jessica T. Lifshitz and McDonald Hopkins, LLC
as special real estate counsel to advise the Debtor and prepare all
documentation relating to the sale of the Debtor's Real Property
located at 240 Royal Palm Way, Palm Beach, Florida.
McDonald Hopkins will be paid at these hourly rates:
Peter M. Bernhardt $530
Jessica Lifshitz $415
Partners and Associates $285-$530
Paralegals $210
McDonald Hopkins will also be reimbursed for reasonable
out-of-pocket expenses incurred.
Jessica Lifshitz, member of McDonald Hopkins, assured the Court
that the firm is a "disinterested person" as the term is defined in
Section 101(14) of the Bankruptcy Code and does not represent any
interest adverse to the Debtors and their estates.
McDonald Hopkins can be reached at:
Jessica Lifshitz, Esq.
McDONALD HOPKINS, LLC
505 South Flagler Drive, Ste 300
West Palm Beach, FL 33401
Tel: (561) 472-2121
E-mail: jlifshitz@mcdonaldhopkins.com
About FJK Properties
FJK Properties Inc. filed a Chapter 11 bankruptcy petition (Bankr.
S.D. Fla. Case No. 15-19494) on May 26, 2015. The Debtor tapped
Robert C. Furr and the law firm Furr and Cohen, P.A., as its
counsel. Hon. Paul G. Hyman, Jr., is assigned to the case.
GEORGETOWN MOBILE: Court Enters Agreed Order Confirming Plan
------------------------------------------------------------
Judge Tracey N. Wise signed an agreed order confirming Georgetown
Mobile Estates, LLC's Fourth Amended Plan of Reorganization.
The judge on Sept. 3, 2015, entered an order approving the Second
Modified Disclosure Statement and set an Oct. 8 hearing on the
Plan. The Debtor filed their Fourth Amended Plan on Oct. 16, 2015.
According to the Oct. 20, 2015 ballot report, holders of secured
claims in Classes 1 and 2, and taxing claims in Class 3 and
unsecured claims in Class 4 accepted the Plan. The Court held a
confirmation hearing on the Plan on Oct. 21, 2015. Judge Wise
signed the agreed order confirming the Plan on Oct. 22.
Objections to confirmation were filed by Theresa Kerr and Kevin
Balcirak, Greg and Heather Scheller, Rebecca Feasby, Gary M. House,
Gary's Cycle and Auto, Inc., and Cycles, Inc., d/b/a Southern Tire
and Honda, Jonathan Williams, Greg Cooper, Camelot Development I,
LLC and Mark Mauer. All objections were later withdrawn.
A copy of the Plan Confirmation Order is available for free at:
http://bankrupt.com/misc/Georgetown_M_292_Order_Plan.pdf
The Chapter 11 Plan
Georgetown Mobile Estates' reorganization plan proposes to
refinance or sell its property within 181 days after Sept. 15,
2015. The terms of any proposed sale or refinance will be subject
to the Secured Lender's approval, which approval will not be
unreasonably withheld. If no refinance or sale occurs within the
marketing period, then the Secured Lender will have sole title to
the Real Property, free and clear of all liens, claims and
encumbrances and may record such deed or deeds. If the Reorganized
Debtor refinances the debt owed to the Secured Lender as provided
for in the Plan, then DellaValle will replace the Receiver and act
as Manager.
To refinance the property, the Debtor may seek a short-term,
two-year loan, whereby the Debtor can pay off the Secured Lender
and thereafter make capital improvements, such as installing city
water meters to all units (approximately 75% of the lots already
have water meters) and installing underground sewer lines, thereby
eliminating the Wastewater Facilities owned by Little Joe's and any
resulting environmental liability thereof.
The City of Georgetown has indicated its support for this project.
The Cash, Disposable Income and Proceeds will be distributed as
follows:
* First, in full and final satisfaction of the Secured Lender's
Allowed Secured Claim, the Debtor may pay the Secured Lender
$11,500,000, plus all of the Secured Lender's costs, fees and
expenses, including, but not limited to attorneys' fees and special
servicing fees that accrue from July 1, 2015, which costs, fees and
expenses will not exceed $100,000.
* Second, the Debtor will pay the Unclassified Claims, being
The U.S. Trustee's Fees, all allowed Professional and
Administrative Fees and Expenses the lesser of (1) the full amount
of each Allowed Unclassified Claim or (ii) each Allowed
Unclassified Claim's pro rata share of the remaining Property
Funds.
* Third, the Debtor will pay the Tax Claims, if any, the lesser
of (1) the full amount of each Allowed Tax Claim or (ii) each
Allowed Tax Claim's pro rata share of the remaining Property
Funds.
* Fourth, the Debtor will pay each Allowed Unsecured Claim the
lesser of (1) the full amount of each Allowed Unsecured Claim or
(ii) each Allowed Unsecured Claim's pro rata share of the Remaining
Proceeds. It is anticipated that distributions to Allowed Claims
will not begin until after the second anniversary year from the
Effective Date. The Plan provides for an Early Payment Incentive
of allowing the Debtor the option of paying all Allowed Claims 50%
if paid within two years from the Effective Date.
* Fifth, the remaining Property Funds, if any, will be
distributed to the Debtor.
The Debtor anticipates borrowing funds within 181-days from Sept.
15, 2015, to pay the Secured Lender's Agreed Secured Claim. The
financing is projected to be short term, which may increase the
total payback to creditors in year 3 of the term. The monthly
payments to the finance company are not projected to have any
substantial impairment to the Allowed Claims of Unsecured
Creditors.
The Debtor retains the option of securing a short term loan to pay
off the Secured Lender pursuant to the Terms in this Plan and then
seek permanent financing at a higher loan value to pay off
Unsecured Allowed Claims. Depending on the amount of the Allowed
Claims at the confirmation hearing pursuant to the Court's Order
Establishing Procedure for Temporary Allowance of Disputed Claims
for voting Purposes, Daniel Sexton will receive a different
treatment than other unsecured creditors under the Plan. Therefore
the Plan may not be considered "fair and equitable" under Sec.
1129(b)(1), and acceptance of each class of claimants may be
required in order to confirm the Plan under these circumstances."
However, depending on the allowance of claims and the votes of the
Creditors, the Plan may be confirmable under 1129(a) or under
1129(b)(1) as "fair and equitable."
A copy of the Second Modified Amended Disclosure Statement is
available for free at:
http://bankrupt.com/misc/Georgetown_M_186_2nd_M_Am_DS.pdf
A copy of the Fourth Amended Plan dated Oct. 16, 2015, is available
at
http://bankrupt.com/misc/Georgetown_M_266_4th_Am_Plan.pdf
Counsel for Georgetown Mobile:
Matthew B. Bunch, Esq.
BUNCH & BROCK
805 Security Trust Building
271 West Short Street
P.O. Box 2086
Lexington, KY 40588-2086
Tel: (859) 254-5522
About Georgetown Mobile Estates
Georgetown Mobile Estates, LLC, is a Kentucky corporation with
headquarters in Georgetown, Scott County, Kentucky. Originally
incorporated on Jan. 23, 2006, the Company operates a mobile home
park in three areas on the county line of Scott and Fayette,
Kentucky. The park can take up to 504 customers and,
historically, had an occupancy rate of 92%.
Georgetown Mobile Estates filed a Chapter 11 bankruptcy petition
(Bankr. E.D. Ky. Case No. 15-50945) in Lexington, Kentucky, on May
11, 2015, to take back control of the mobile home park from a
receiver. Daniel E. Sexton, the present owner, signed the
petition.
The bankruptcy case is assigned to Judge Tracey N. Wise. The
Debtor estimated $10 million to $50 million in assets and debt.
The Debtor tapped Bunch & Brock of Lexington, Kentucky, as counsel;
Randy Reynolds of Magnum Capital Consultants, LLC, as financial
advisor; Bradford Burgess of The Thayer Group as financial advisor;
and Glen DellaValle of DellaValle Management Group as manager of
business operations.
The U.S. trustee overseeing the Chapter 11 case of Georgetown
Mobile Estates LLC appointed three creditors of the company to
serve on the official committee of unsecured creditors.
GOLD RIVER: Bid to Reduce Payments to Lone Oak by $592K Denied
--------------------------------------------------------------
Gold River Valley, LLC, which sold its assets for $10.8 million,
filed a motion to clarify the U.S. Bankruptcy Court's Sept. 16,
2015 Order Conditionally Confirming the Debtor's Chapter 11 Plan.
Specifically, Gold River seeks to reduce a payoff demand dated
Sept. 21, 2015, by secured creditor Lone Oak Fund, LLC in the
amount of $5.06 million by $592,000. Gold River said payments
previously made by the Debtor should be credited.
Lone Oak objected to the motion, and Judge Thomas B. Donovan ruled
in favor of Lone Oak by denying the Debtor's motion following a
hearing on Oct. 28, 2015.
"Wolf, Rifkin, Shapiro, Schulman & Rabkin, LLP is hereby authorized
to disburse the sale proceeds from its client trust account upon
receipt to secured creditor Lone Oak Fund, LLC," Judge Donovan
ruled in his November 2015 order denying the Debtor's motion.
Plan Confirmation Order
Following the confirmation hearings, on Sept. 16, 2015, the Court
entered the Order Conditionally Confirming Debtor's Chapter 11
Plan. The Order approved the sale of the Debtor's property to the
Ding Gang, the buyer, for $10.8 million, and confirmed the Plan.
The parties agreed that Lone Oak would submit into escrow its
demand for payment of unpaid amounts excluding default interest. As
a result, when escrow closes, Lone Oak will receive payment on
account of all non-default interest obligations, with the balance
of the funds to be maintained by Debtor's counsel pending further
order of the Court.
The Order provides:
"13. Upon the Closing, escrow is directed to disburse the
proceeds of the sale as follows:
...
(iii) Payment of the asserted secured claim of Lone Oak
pursuant to a payoff demand, provided that Lone Oak's demand
shall exclude, and escrow shall not pay, any portion of
default interest with respect to such secured claim, as
identified on the Court's record;" (Emphasis added).
Lone Oak submitted a payoff demand dated Sept. 21, 2015 (the
"September 2015 Demand") demanding an aggregate payoff amount of
$5,060,709.96 (the "Requested Payoff Amount"). Noticeably absent
from the September 2015 Demand was any credit for or mention of the
$592,320 of payments actually made by the Debtor to Lone Oak
(the "Payment Credits").
Based on the Debtor's conversations with Lone Oak, the Debtor is
informed that Lone Oak has applied the Payment Credits against the
amounts asserted by Lone Oak for default interest (the "Default
Interest").
"By unilaterally applying the prior payments of $592,320 to the
default interest, Lone Oak is using self-help to, at a minimum,
allow itself default interest in such amount. This is improper and
inconsistent with the discussions in Court and the spirit of the
Order."
Lone Oak Defends Payoff Demand
Lone Oak disagreed with the Debtor's contentions. It said that the
subject provision needs no clarification as it provides
straightforwardly that: (i) Lone Oak's holds a secured claim; (ii)
which will be paid pursuant to a payoff demand provided by Lone
Oak; (iii) provided, however, that escrow shall not pay any portion
of alleged default interest with respect to Lone Oak's secured
claim; and (iv) as identified on the Court's record.
Lone Oak says it payoff demand only includes alleged non-default
interest under the "Loan Documents" on the outstanding principal
amount of $3,750,000.00 as follows:
* $139,507.50 of Interest @ 8.90% from 11/1/2012-3/31/2013;
and,
* $842,812.50 of Interest @ 9.30% from 4/1/2013-8/31/2015
Lone Oak said it applied partial payments totaling $592,320 going
back to December of 2012, to the total interest accruing at the
alleged default interest rate (24% per annum) and totaling at that
time $1,777,500. This occurred long before the commencement of the
chapter 11 case.
"In reality, the Debtor is not seeking to clarify the Order at all.
Rather, and without any authority whatsoever or any basis in fact,
the Clarification Motion seeks to rewrite history and have Lone Oak
effectively disgorge monies it received and applied to the Debtor's
loan almost three years ago," Lone Oak said in its objection to the
Debtor's motion.
In response to Lone Oak's objection, the Debtor argued that Lone
Oak's primary explanation -- that it had "previously received and
applied [the Payment Credits] to the alleged default interest
accruing from November 2012 to July 2014 in the aggregate amount of
$592,320.00" -- is both unfounded and false.
According to the Debtor, there is no dispute -- and Lone Oak does
not deny -- that the Payoff Demand's failure to account for the
Payment Credits (either through its pre- or post-petition
offsetting of such amounts against Default Interest) forces escrow
to pay Lone Oak an additional $592,320 on account of Default
Interest, in direct contravention of the Court's Order.
Attorneys for debtor Gold River Valley:
David B. Golubchik, Esq.
Jeffrey S. Kwong, Esq.
LEVENE, NEALE, BENDER, YOO & BRILL L.L.P.
10250 Constellation Boulevard, Suite 1700
Los Angeles, CA 90067
Telephone: (310) 229-1234
Facsimile: (310) 229-1244
E-mail: dbg@lnbyb.com
jsk@lnbyb.com
Attorneys for secured creditor Lone Oak Fund, LLC:
Simon Aron, Esq.
Elsa Horowitz, Esq.
WOLF, RIFKIN, SHAPIRO, SCHULMAN & RABKIN, LLP
11400 West Olympic Boulevard, 9th Floor
Los Angeles, CA 90064-1582
Telephone: (310) 478-4100
Facsimile: (310) 479-1422
E-mail: saron@wrslawyers.com
ehorowitz@wrslawyers.com
About Gold River Valley
Gold River Valley, LLC, sought Chapter 11 bankruptcy protection
(Bankr. C.D. Cal. Case No. 15-10691) in Los Angeles, on Jan. 16,
2015.
David B. Golubchik, Esq., and Jeffrey S. Kwong, Esq., at Levene,
Neale, Bender, Yoo & Brill L.L.P., represents the Debtor as
counsel.
The Debtor disclosed $12,000,000 in assets and $8,720,911 in
liabilities as of the Chapter 11 filing.
* * *
Judge Thomas B. Donovan of the U.S. Bankruptcy Court for the
District of California on Sept. 16, 2015, entered an order
conditionally confirming the Chapter 11 Plan of Gold River Valley.
The order authorized and approved the sale of the Debtor's
property to Ding Gang, the buyer, for $10.8 million. A copy of the
order is available for free at http://is.gd/2JWI1V
GOODMAN AND DOMINGUEZ: Case Summary & 20 Top Unsecured Creditors
----------------------------------------------------------------
Debtor: Goodman and Dominguez, Inc.
dba Traffic
dba Traffic Shoe
dba Goodman & Dominguez, Inc.
dba Traffic Shoes
dba Traffic Shoe, Inc.
10701 NW 127 St
Medley, FL 33178
Case No.: 16-10056
Chapter 11 Petition Date: January 4, 2016
Court: United States Bankruptcy Court
Southern District of Florida (Miami)
Judge: Hon. Robert A Mark
Debtor's Counsel: Peter D. Russin, Esq.
MELAND RUSSIN & BUDWICK, P.A.
200 S Biscayne Blvd. #3200
Miami, FL 33131
Tel: (305) 358-6363
Fax: (305) 358-1221
Email: prussin@melandrussin.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by David Goodman, president.
A list of the Debtor's 20 largest unsecured creditors is available
for free at http://bankrupt.com/misc/flsb16-10056.pdf
GT ADVANCED: Plan Offers De Minimis Recovery to Unsecureds
----------------------------------------------------------
GT Advanced Technologies, Inc., et al., have proposed a Joint Plan
of Reorganization that not only keeps the Debtors operating as a
going concern but also provides for the distribution to holders of
allowed general unsecured claims of a portion of the Reorganized
Debtors' equity or Cash (in lieu of such equity) that is not being
distributed to the parties providing the $80 million exit
financing. In addition, the Plan also establishes a "litigation
trust" that may generate Cash for distribution for holders of
allowed general unsecured claims.
In light of the lack of a superior proposals for the Debtors'
emergence from chapter 11, and the fact that, according to the
Liquidation Analysis, the liquidation of the Debtors under chapter
7 of the Bankruptcy Code would not produce any recoveries for
general unsecured creditors, the Official Committee of Unsecured
Creditors believes that the Plan embodies the best alternative for
unsecured creditors and recommends that all unsecured creditors
vote to accept the Plan.
The estimated recoveries for holders of claims and interests under
the Plan are:
Estimated Estimated
Type of Aggregate Percentage
Class Claim/Interest Amount Recovery
----- -------------- --------- ----------
1 Priority Non-Tax Claims $1 million 100%
2 Secured Tax Claims $0 100%
3 Other Secured Claims $1.7 million 100%
4A GT Inc. Notes Claims $436.1 million 0.161%
4B GT Inc. Gen.
Unsecured Claims $21.4M to $181.9M 0.161%
4C Corp Debtors Gen.
Unsec. Claims $83.2M to $255.6M 0.790%
to 2.427%
4D GT Hong Kong Gen.
Unsec. Claims $80.5M to $108.6M 0.492%
to 0.663%
5 Subordinated
Securities Claims Unliquidated 0%
6 GT Inc. Equity Interests N/A 0%
7 Intercompany Equity
Interests N/A N/A
Under the Plan, holders of Allowed Administrative Expense Claims,
Allowed Priority Tax Claims, Allowed Priority Non-Tax Claims, and
Allowed Secured Tax Claims, will be paid in full in Cash unless
such holders agree to less favorable treatment, and holders of
Allowed Other Secured Claims, at the option of the applicable
Debtor, will either be reinstated, paid in full in Cash, or the
holders of such Allowed Other Secured Claims will receive the
collateral securing such Allowed Other Secured Claim.
Holders of DIP Facility Claims will receive (i) Cash in an amount
of such Allowed DIP Facility Claim; (ii) the DIP Warrants; (iii)
the DIP Amendment Fee, and (iv) the DIP Prepayment Fee. Any holder
of a DIP Facility Claim or and Administrative Expense Claim that is
also a Financing Support Party may, at its option, elect to
exchange, on a dollar-for-dollar basis, some or all of such Claims
to participate in the Exit Financing based upon and solely up to
its respective Exit Financing Commitment Amount, which exchanged
amount shall be in lieu of the cash distribution to which it would
otherwise be entitled.
In accordance with the Plan, (a) holders of Allowed GT Inc. Notes
Claims in Class 4A will receive (i) Reorganized Common Stock
(subject to the Cashing-Out Programs), (iii) a portion of the
Excess Proceeds, if any; (iii) a beneficial interest in the
Litigation Trust, and (iv) the Noteholder Warrants, and (b) holders
of Allowed General Unsecured Claims in Classes 4C and 4D will
receive (i) Reorganized Common Stock (subject to the Cashing-Out
Programs), (ii) a portion of the Excess Proceeds, if any, and (iii)
a beneficial interest in the Litigation Trust, in each case, in a
percentage as set forth in Section 5.4, 5.6 and 5.7 of the Plan.
Upon the Effective Date of the Plan, the Reorganized Debtors'
capital structure will consist of (a) the Senior Secured Notes in
the amount of $60 million, (b) shares of Preferred Stock, which
will represent 86% of the ownership of the common stock in
Reorganized GT Inc. on an as-converted basis (subject to dilution),
and (c) shares of Reorganized Common Stock. Reorganized GT Inc.
will issue the Preferred Stock to the Financing Support Parties in
exchange for $20 million.
Reorganized GT Inc. will also issue shares of Reorganized Common
Stock to holders of Allowed General Unsecured Claims in Class 4A,
Class 4C, and Class 4D, subject to dilution and a Cashing-Out
Programs and in the Plan, which will represent 14% of the equity in
Reorganized GT Inc.
In accordance with the Plan:
(a) holders of Allowed GT Inc. Notes Claims in Class 4A will
receive their pro rata share of (i) 21.6% of the Reorganized Common
Stock Pool, (ii) 12.5% of the Excess Proceeds, if any, (iii) a
12.5% beneficial interest in the Litigation Trust, and (iv) the
Noteholder Warrants;
(b) holders of Allowed Corp. Debtors General Unsecured Claims
will receive their pro rata share of (i) 62.0% of the Reorganized
Common Stock Pool, (ii) 71.1% of the Excess Proceeds, if any, and
(iii) a 71.1% beneficial interest in the Litigation Trust; and
(c) holders of Allowed GT Hong Kong General Unsecured Claims
will receive their pro rata share of (i) 16.4% of the Reorganized
Common Stock Pool, (ii) 16.4% of Excess Proceeds, if any, and (iii)
a 16.4% beneficial interest in the Litigation Trust.
The Cashing-Out Programs set forth in the Plan apply to holders of
General Unsecured Claims in Classes 4A, 4C and 4D of the Plan. In
accordance with the Cashing-Out Programs, a Cashing-Out Reserve of
$1.5 million -- Cashing-Out Cap -- will be established under the
Plan to pay, under certain circumstances, Cash in lieu of
distributions of Reorganized Common Stock to the holders of Claims
in Classes 4A, 4C and 4D. Subject to the Cashing-Out Cap, a holder
of a Claim in one of those Classes may, in lieu of any Reorganized
Common Stock it is entitled to receive under the Plan, elect to
receive Cash in an amount equal to the imputed value as of the
Effective Date of the shares of Reorganized Common Stock that would
otherwise be distributed to such holders under the Plan.
Additionally, holders of Allowed GT Inc. General Unsecured Claims
in Class 4B will receive a Cash distribution pursuant to Section
5.5 of the Plan substantially equal, as a percentage of its Allowed
GT Inc. General Unsecured Claim, to the recovery, calculated as of
the Effective Date and as a percentage of such Claim, that a holder
of an Allowed GT Inc. Notes Claim is to obtain under the Plan.
A copy of the Disclosure Statement filed Dec. 21, 2015, is
available for free at:
http://bankrupt.com/misc/GT_Advanced_2802_DS.pdf
About GT Advanced
Headquartered in Merrimack, New Hampshire, GT Advanced
Technologies Inc. -- http://www.gtat.com/-- produces materials and
equipment for the electronics industry. On Nov. 4, 2013, GTAT
announced a multi-year supply deal with Apple Inc. to produce
sapphire glass material for use in consumer electronics products.
Under the deal, Apple would provide GTAT with a prepayment of
approximately $578 million paid in four installments and, starting
in 2015, GTAT would reimburse Apple for the prepayment over a
five-year period.
GT is a publicly held corporation whose stock was traded on NASDAQ
under the ticker symbol "GTAT." GTAT was de-listed from the NASDAQ
stock exchange in October 2014.
As of June 28, 2014, the GTAT Group's unaudited and consolidated
financial statements reflected assets totaling $1.5 billion and
liabilities totaling $1.3 billion. As of Sept. 29, 2014, GTAT had
$85 million in cash, $84 million of which is unencumbered.
On Oct. 6, 2014, GT Advanced Technologies and eight affiliates
filed voluntary petitions for relief under Chapter 11 of the United
States Bankruptcy Code (Bankr. D.N.H. Lead Case No. 4-11916). GT
sought bankruptcy protection due to a severe liquidity crisis
brought about by its issues with Apple.
The bankruptcy case is assigned to Judge Henry J. Boroff.
The Debtors tapped Paul Hastings LLP as general bankruptcy counsel;
Nixon Peabody LLP as local New Hampshire counsel; Quinn Emanuel
Urquhart & Sullivan, LLP, as special counsel to GT SPE; Alvarez &
Marsal North America, LLC as restructuring advisor; Rothschild
Inc.; as financial advisor and investment banker; Ropes & Gray LLP
as corporate counsel and conflicts counsel; PricewaterhouseCoopers
LLP as accountant and tax advisor; StoneTurn Group, LLP, through
Ropes & Gray, as accountants; Hilco Valuation Services, LLC, as
appraiser and valuation consultant; and Kurtzman Carson Consultants
LLC as claims and noticing agent.
The U.S. Trustee named seven members to the Official Committee of
Unsecured Creditors. The Committee' professionals are Kelley Drye
as its bankruptcy counsel; Devine, Millimet & Branch, Professional
Association as local counsel; EisnerAmper LLP as
financial advisors; and Houlihan Lokey Capital, Inc. as investment
banker.
* * *
In October 2014, GTAT reached a settlement with Apple. The
settlement gives Apple an approved claim for $439 million secured
by more than 2,000 sapphire furnaces that GT Advanced owns and has
four years to sell, with proceeds going to Apple. In addition,
Apple gets royalty-free, non-exclusive licenses for GTAT's
technology.
Pursuant to the settlement approved in December 2014, GTAT was
obligated to turn over the Mesa Facility to Apple in “broom
clean” condition by December 31, 2015, other than certain
designated storage space for the ASF Furnaces. However, as of
November 2, 2015, GTAT had not sold any of the more than 2,000 ASF
Furnaces located in the Mesa Facility. Accordingly, in December
2015, GTAT obtained approval of a revised settlement with Apple,
which provides for the sale of ASF Furnaces pursuant to agreed
auction procedures.
GT ADVANCED: Plan Outline Hearing Set for Jan. 21
-------------------------------------------------
The U.S. Bankruptcy Court for the District of New Hampshire will
convene a hearing on Jan. 21, 2016, at 10:00 a.m. (Eastern Time) to
determine the adequacy of the Disclosure Statement for GT Advanced
Technologies, Inc., et al.'s Joint Plan of Reorganization.
Objections or responses, if any, to the Disclosure Statement are
due Jan. 14, 2016, at 4:00 a.m. (Eastern Time).
On Dec. 21, 2015, the Debtors filed their proposed Joint Plan of
Reorganization and explanatory disclosure statement.
The Debtors submitted the Plan following extensive negotiations
with certain of their key stakeholders.
In connection with the Plan, certain of the DIP Lenders in the
Chapter 11 Cases, as well as holders of large prepetition claims
against GT Hong Kong, the Corp Debtors, and GT Inc. -- Financing
Support Parties -- have committed $80 million of exit financing
that will fund, in part, the Debtors' obligations under the Plan.
The Official Committee of Unsecured Creditors and holders of claims
arising under the GT Inc. Notes -- Consenting Parties -- support
the Plan.
The Financing Support Parties include one or more affiliates of or
funds managed by WBox 2014-3 Ltd., Jefferies LLC, QPB Holdings
Ltd., Wolverine Flagship Fund Trading Limited, Privet Fund
Management LLC, Citigroup Financial Products Inc., Caspian Capital
LP, Corre Partners Management LLC, and Empyrean Capital Partners,
LP.
The Consenting Parties include AQR Capital Management, LLC,
Aristeia Capital, L.L.C., CNH Partners, LLC, Latigo Partners, LP,
New Generation Advisors, LLC, Pine River Capital Management, L.P.,
and their respective permitted assignees.
The Plan and the distributions contemplated thereby are premised on
a global settlement of numerous inter-Debtor, Debtor-creditor, and
inter-creditor issues, including substantive consolidation, the
allocation of Reorganized Common Stock and other value to be
distributed to creditors under the Plan, treatment of the Debtors'
tax attributes, and other issues affecting the Debtors and their
creditors
About GT Advanced
Headquartered in Merrimack, New Hampshire, GT Advanced Technologies
Inc. -- http://www.gtat.com/-- produces materials and equipment
for the electronics industry. On Nov. 4, 2013, GTAT announced a
multi-year supply deal with Apple Inc. to produce sapphire glass
material for use in consumer electronics products.
Under the deal, Apple would provide GTAT with a prepayment of
approximately $578 million paid in four installments and, starting
in 2015, GTAT would reimburse Apple for the prepayment over a
five-year period.
GT is a publicly held corporation whose stock was traded on NASDAQ
under the ticker symbol "GTAT." GTAT was de-listed from the NASDAQ
stock exchange in October 2014.
As of June 28, 2014, the GTAT Group's unaudited and consolidated
financial statements reflected assets totaling $1.5 billion and
liabilities totaling $1.3 billion. As of Sept. 29, 2014, GTAT had
$85 million in cash, $84 million of which is unencumbered.
On Oct. 6, 2014, GT Advanced Technologies and eight affiliates
filed voluntary petitions for relief under Chapter 11 of the United
States Bankruptcy Code (Bankr. D.N.H. Lead Case No. 4-11916). GT
sought bankruptcy protection due to a severe liquidity crisis
brought about by its issues with Apple.
The bankruptcy case is assigned to Judge Henry J. Boroff.
The Debtors tapped Paul Hastings LLP as general bankruptcy counsel;
Nixon Peabody LLP as local New Hampshire counsel; Quinn Emanuel
Urquhart & Sullivan, LLP, as special counsel to GT SPE; Alvarez &
Marsal North America, LLC as restructuring advisor; Rothschild
Inc.; as financial advisor and investment banker; Ropes & Gray LLP
as corporate counsel and conflicts counsel; PricewaterhouseCoopers
LLP as accountant and tax advisor; StoneTurn Group, LLP, through
Ropes & Gray, as accountants; Hilco Valuation Services, LLC, as
appraiser and valuation consultant; and Kurtzman Carson Consultants
LLC as claims and noticing agent.
The U.S. Trustee named seven members to the Official Committee of
Unsecured Creditors. The Committee' professionals are Kelley Drye
as its bankruptcy counsel; Devine, Millimet & Branch, Professional
Association as local counsel; EisnerAmper LLP as financial
advisors; and Houlihan Lokey Capital, Inc. as investment banker.
* * *
In October 2014, GTAT reached a settlement with Apple. The
settlement gives Apple an approved claim for $439 million secured
by more than 2,000 sapphire furnaces that GT Advanced owns and has
four years to sell, with proceeds going to Apple. In addition,
Apple gets royalty-free, non-exclusive licenses for GTAT's
technology.
Pursuant to the settlement approved in December 2014, GTAT was
obligated to turn over the Mesa Facility to Apple in "broom clean"
condition by December 31, 2015, other than certain designated
storage space for the ASF Furnaces. However, as of November 2,
2015, GTAT had not sold any of the more than 2,000 ASF Furnaces
located in the Mesa Facility. Accordingly, in December 2015, GTAT
obtained approval of a revised settlement with Apple, which
provides for the sale of ASF Furnaces pursuant to agreed auction
procedures.
HAGGEN HOLDINGS: Judge Extends Deadline to Remove Suits to April 5
------------------------------------------------------------------
U.S. Bankruptcy Judge Kevin Gross has given Haggen Holdings LLC
until April 5, 2016, to file notices of removal of lawsuits
involving the company and its affiliates.
About Haggen Holdings
Headquartered in Bellingham, Washington, Haggen was founded in 1933
as a single grocery store. From 1933 to 2014, Haggen grew into a
30 store family-run grocery chain, with stores located in the
northwestern United States. From 2011 to 2014, Haggen reduced its
store base to 18, including a stand-alone pharmacy location.
Haggen rapidly expanded in 2014 and 2015, and, as of the Petition
Date, Haggen owned and operated 164 stores through three operating
companies: Haggen, Inc., Haggen Opco North, LLC and Haggen Opco
South, LLC.
Haggen Holdings, LLC, and its affiliates filed Chapter 11
bankruptcy petitions (Bankr. D. Del. Case Nos. 15-11874 to
15-11879) on Sept. 8, 2015, with the intention of reorganizing, or
selling as a going concern, their stores for the benefit of their
creditors.
The petitions were signed by Blake Barnett, the chief financial
officer.
The Debtors estimated assets of $50 million to $100 million and
estimated liabilities of $10 million to $50 million.
Young, Conaway, Stargatt & Taylor, LLP, is serving as the Debtors'
local counsel. Stroock & Stroock & Lavan LLP serves as the
Debtors' general counsel. Alvarez & Marsal North America, LLC,
acts as the Debtors' financial advisor. Kurtzman Carson
Consultants LLC serves as the Debtors' claims and noticing agent.
In September 2015, T. Patrick Tinker, assistant U.S. trustee for
Region 3, appointed seven creditors to the official committee of
unsecured creditors.
HIGH-TOP HOLDINGS: Case Summary & 5 Largest Unsecured Creditors
---------------------------------------------------------------
Debtor: High-Top Holdings, Inc.
5138 Old Atlanta Road
Hampton, GA 30228
Case No.: 16-10022
Chapter 11 Petition Date: January 4, 2016
Court: United States Bankruptcy Court
Northern District of Georgia (Newnan)
Debtor's Counsel: J. Nevin Smith, Esq.
SMITH CONERLY LLP
402 Newnan Street
Carrollton, GA 30117
Tel: (770) 834-1160
Fax: (770) 834-1190
Email: awilson@smithconerly.com
Estimated Assets: $500,000 to $1 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Japeth Jackson, president.
A list of the Debtor's five largest unsecured creditors is
available for free at http://bankrupt.com/misc/ganb16-10022.pdf
INTERNATIONAL BRIDGE: Insider Deal Wanting Disclosure, Leidos Says
------------------------------------------------------------------
Leidos, Inc., parent of Leidos Constructors, LLC, f/k/a SAIC
Constructors, LLC, and TOA Corporation opposes International Bridge
Corporation's motion to sell a service and maintenance contract for
the John F. Kennedy High School on the island of Guam free and
clear of Leidos' liens, claims, encumbrances and interests and the
Debtor's Cash Collateral Motion.
The Debtor filed the Sale Motion on September 4, 2015. Leidos
objected on October 22, 2015, for lack of evidence and lack of
disclosure surrounding the proposed insider transaction in the Sale
Motion. Leidos and TOA attempted to work with the Debtor towards a
consensual resolution of the Sale Motion and Cash Collateral
Motion. However, due to the failure of the Debtor to provide
information in a complete and timely manner, the Creditors were
left with no choice but to file an opposition and proceed with
judicial adjudication of the issues.
The Creditors complained that the Debtor's financial information
revealed gross discrepancies that warrant additional scrutiny in
light of the proposed insider transaction of the Sale Motion and
the unreliability of the Debtor's budget for the Cash Collateral
Motion. According to the Debtor's Cash Collateral Budget for the
months May to October 2015, the Debtor's income, consisting solely
of Contract Revenue from the JFK Contract, is budgeted to be
$73,478 per month, while the Budget reflects the Debtor's Expense
of Direct Costs - Subcontractors, consisting of payment to the
insider entity, GPS, for contract services on the JFK Contract, is
budgeted to be $65,000 per month. However, according to the
Debtor's Monthly Operating Reports for the months of May, June,
July, August and September 2015, the Debtor's actual Income
consisted of Receivables from the JFK Contract and actual
Disbursements for Contract Labor payments to GPS, explained the
Creditors.
The Debtor's pleadings provide little, if any, additional
information about the insider entity to the sale transaction,
General Pacific Services, LLC, owned by the Debtor's principal’s
wife, the Creditors told the Court. Noticeably absent from the
record is any affidavit on behalf of GPS and despite queries by
both the Court and Leidos at the initial hearing on the Sale
Motion, the Debtor provided no information on the financial
condition of GPS, the purported rationale behind the sale
transaction, when the owners of GPS and the Debtor are spouses, the
Creditors further told the Court.
The proposed Assumption and Assignment Agreement is inadequate,
alleged the Creditors. The Reply brief contains an unsubstantiated
statement that GPS is willing to waive its claim of approximately
$12,000 against the Debtor. However, the Assignment Agreement
contains no such waiver. Nor does the Assignment Agreement contain
a waiver of the claim of Pacific Waste Systems. The Assignment
Agreement does not specify how frequently the Assignee must pay the
Assignor and lacks any accounting mechanism or reporting
obligations by the Assignee with respect to the amount of the 10%
payment. The Creditors further alleged that the amount is subject
to extreme fluctuation as demonstrated by the Debtor’s Monthly
Operating Reports.
Debtor's Response
The Debtor maintained that it may sell and assign the JFK Contract
pursuant to the Bankruptcy Code as a Debtor-in-Possession, with the
rights and powers of a trustee as granted by Section 1107(a), the
Debtor may sell estate assets outside the ordinary course of
business under 363(b), after notice and a hearing. In order for
the sale to be approved, the Debtor must show: (1) that a sound
business reason exists for the sale; (2) there has been adequate
and reasonable notice to interested parties, including full
disclosure of the sale terms and the Debtor's relationship with the
buyer; (3) that the sale price is fair and reasonable; and (4) that
the buyer is a good faith purchaser.
According to the Debtor, a sound business reason exists for the
sale and pointed out that the risks of waiting for a Plan to be
confirmed includes CaPFA's threat that it will cancel the JFK
Contract and the Debtor will lose its stream of revenue that is
intended to fund the Plan and the expense of litigation that the
Debtor may incur if it has to litigate CaPFA's wrongful termination
of the JFK Contract.
The Motion to Sell indicates that prior to the proposed sale, the
Debtor collected a 10% fee for managing the JFK Contract, but all
other compensation was remitted to GPS, the Debtor noted. It also
indicates that after the sale, the proposed purchaser, GPS, will
pay the Debtor a 10% fee of its total gross revenue from the JFK
Contract for a period of 36 months, the Debtor further noted. The
Debtor added that the Motion to Sell specifically discloses that
the proposed purchaser is GPS, which is owned by the Debtor's
spouse, and that GPS has been the subcontractor actually performing
the Services under the JFK Contract. Upon approval of the sale by
the Court, the Debtor will reject or terminate the Subcontract as
allowable.
Moreover, the Debtor revealed that an appraisal of the JFK Contract
does not exist. However, the proposed purchaser, GPS, has offered
to pay the Debtor 100% of what the Debtor is currently collecting
under the JFK Contract, i.e., 10% of gross receipts for 36 months.
The Debtor maintains that such a price is therefore per se fair and
reasonable. And the proposed buyer is proceeding in good faith for
purchaser is one who buys in good faith and for value.
International Bridge is represented by:
Wesley F. Smith, Esq.
STEVENS & BRAND, LLP
900 Massachusetts, Suite 500
P.O. Box 189
Lawrence, KS 66044
Telephone: (785)843-0811
Facsimile: (785)843-0341
E-mail: Wsmoth@StevensBrand.com
TOA Corporation is represented by:
Mark Moedritzer
SHOOK, HARDY & BACON L.L.P.
2555 Grand Blvd.
Kansas City, MO 64108
Telephone: (816) 474-6550
Facsimile: (816) 421-5547
Email: mmoedritzer@shb.com
Leidos, Inc. is represented by:
Mark G. Stingley, Esq.
Michelle M. Masoner, Esq.
BRYAN CAVE LLP
3800 One Kansas City Place
1200 Main Street, Suite 3500
Kansas City, Missouri 64105
Telephone: (816) 374-3200
Facsimile: (816) 374-3300
Email: mgstingley@bryancave.com
michelle.masoner@bryancave.com
-- and --
Christine E. Baur, Esq.
LAW OFFICE OF CHRISTINE E. BAUR
4653 Carmel Mountain Road
Suite 308, #332
San Diego, California 92130
Telephone: (858) 350-3757
Facsimile: (858) 876-9480
Email: christine@baurbklaw.com
About International Bridge
International Bridge Corporation, a contractor for government
projects in the South Pacific and Guam, sought Chapter 11
protection (Bankr. D. Kan. Case No. 15-20951) in Kansas City on May
7, 2015. Robert Toelkes, the sole shareholder and manager, signed
the petition. The Debtor disclosed total assets of $17.4 million
and total debt of $27.4 million.
The case is assigned to Judge Robert D. Berger. The Debtor tapped
Stevens & Brand, LLP, as its counsel. Foulston Siefkin, LLP,
serves as the Debtor's special litigation counsel. Robert G. Nath,
PLLC, represents the Debtor as special tax counsel.
KALOBIOS PHARMACEUTICALS: Delisting Hearing Scheduled for Feb. 25
-----------------------------------------------------------------
KaloBios Pharmaceuticals, Inc. on Dec. 31 disclosed that on
December 30, 2015, it received a letter from The NASDAQ Stock
Market LLC concerning the delisting proceedings previously
disclosed by the Company in a filing with the Securities and
Exchange Commission on December 23, 2015. The letter notified the
Company that the Nasdaq Listing Qualification Staff has determined
that the Company's filing for protection under Chapter 11 of Title
11 of the U.S. Bankruptcy Code on December 29, 2015 constitutes a
separate and additional basis for delisting the Company's
securities under Listing Rules 5101, 5110(b), and IM-5101-1.
Additionally, the letter stated that the resignations of Tom
Fernandez and Marek Biestek as members of the Company's board of
directors on December 27, 2015 resulted in the Company having only
one remaining member on its audit committee, which also serves as a
separate and additional basis for delisting the Company's
securities under Listing Rule 5605(c)(2)(A).
The Company previously disclosed that it has filed an appeal of the
Nasdaq Staff's decision to delist the Company's securities. A
Nasdaq appeal panel will consider these additional bases for
delisting at the previously scheduled hearing on February 25, 2016.
About KaloBios Pharmaceuticals
Based in South San Francisco, Calif., KaloBios Pharmaceuticals,
Inc., is a company biopharmaceutical company focused on the
development of monoclonal antibody therapeutics.
The Company reported a net loss of $9.62 million on $nil of
revenues for the three months ended Mar. 31, 2015, compared with a
net loss of $10.4 million on $nil of revenue for the same period
last year.
The Company's balance sheet at March 31, 2015, showed $32.0 million
in total assets, $15.9 million in total liabilities, and a
stockholders' deficit of $16.1 million.
LUTETIUM CAPITAL: Plans to Liquidate 2 Funds, Return Cash
---------------------------------------------------------
Laura J. Keller, writing for Bloomberg Brief - Distrss &
Bankruptcy, reported that Lutetium Capital LLC, a hedge-fund firm
that invests in distressed securities, is
liquidating its two credit funds and returning all of the money it
was managing to investors by February, according to co-founder
Michael Carley.
According to the report, citing a person with knowledge of the
matter, the firm oversees approximately $150 million. The
Stamford, Connecticut-based business told investors it would
liquidate the funds in a letter following redemption requests from
some of its clients and losses, Carley said. Investors in
Lutetium's liquid alternatives product had wanted their money back
and the firm decided to liquidate its hedge fund holdings as well,
he said, the Bloomberg report related.
"We returned capital to every one of our investors to treat all
investors equally," the report further related, citing Carley, the
former co-head of distressed debt at UBS Group AG. The firm
invested money from its liquid-alternatives fund and its hedge fund
in the same debt securities, meaning that selling the holdings from
one of the funds would likely push down the value of the assets in
the other, Carley said, the report noted.
MICHAEL TOLOMEO: Ct. Pierces Gemini Int'l, et al.'s Corporate Veils
-------------------------------------------------------------------
In the attempt of bringing the assets of Gemini International,
American Gourmet Specialties, Tolflex Engineering Systems, and
Laura Tolomeo into Michael Tolomeo's, bankruptcy estate,
BCL-Sheffield and BCL-Burr Ridge filed an adversary action against
Gemini International, et al., asking the bankruptcy court to find
that the Defendants were alter egos of the Debtor and thereby
declare the Defendants' assets part of the the Debtor's bankruptcy
estate.
The Plaintiffs further asked the bankruptcy court to pierce the the
Defendants' corporate veils and direct turnover of the Defendants'
assets to the bankruptcy trustee.
Before the Court is the bankruptcy court's Proposed Findings of
Fact and Conclusions of Law recommending that the Plaintiffs'
motion be granted. The Defendants timely filed several objections
to the bankruptcy court's findings. Specifically, the Defendants
object to the bankruptcy court's proposed findings that the
Plaintiffs have standing to bring their claims, that the bankruptcy
court has subject matter jurisdiction, and that the undisputed
facts warrant granting the Plaintiffs' motion for judgment on the
pleadings.
In an Opinion and Order dated December 15, 2015, which is available
at http://is.gd/uHulMpfrom Leagle.com, Judge Sara L. Ellis of the
United States District Court for the Northern District of Illinois,
Eastern Division, overrules the Defendants' objections and adopts
the bankruptcy court's Proposed Findings of Fact and Conclusions of
Law.
The undisputed facts substantially show that the Defendants were
the alter egos of the Debtor such that the Defendants assets should
be brought into the Debtor's bankruptcy estate, Judge Ellis ruled.
Likewise, these facts also show sufficient unity of interest and
ownership such that reverse-piercing the Corporate Defendants'
veils, Judge Ellis further ruled.
The case is BCL-SHEFFIELD, LLC, and BCL-BURR RIDGE, LLC,
Plaintiffs, v. GEMINI INTERNATIONAL, INC., AMERICAN GOURMET
SPECIALTIES, LTD., TOLFLEX ENGINEERING SYSTEMS, CO., and LAURA
TOMEO, Defendants, No. 15 C 8118, related to IN RE: MICHAEL TOLOMEO
Debtor.
BCL-Burr Ridge LLC, Plaintiff, represented by Elizabeth Buckey
Vandesteeg, Esq. -- evandesteeg@sugarfgh.com -- Sugar Felsenthal
Grais & Hammer LLP, Jason Brett Hirsh, Esq. -- jhirsh@lplegal.com
-- Levenfeld Pearlstein, LLC, Jonathan Paul Friedland, Esq. --
Schiff Hardin LLP & Gary Irwin Blackman, Esq. --
gblackman@lplegal.com -- Levenfeld Pearlstein.
BCL-Sheffield LLC, Plaintiff, represented by Elizabeth Buckey
Vandesteeg, Sugar Felsenthal Grais & Hammer LLP, Jason Brett Hirsh,
Levenfeld Pearlstein, LLC, Jonathan Paul Friedland, Schiff Hardin
LLP & Gary Irwin Blackman, Levenfeld Pearlstein.
Gemini International, Inc, Defendant, represented by Terrence
Michael Jordan, Esq. -- jordanlawpc@comcast.net -- Jordan Law
P.C..
American Gourmet Specialties, Ltd., Defendant, represented by
Terrence Michael Jordan, Jordan Law P.C..
Tolflex Engineering Systems Co., Defendant, represented by Terrence
Michael Jordan, Jordan Law P.C..
Laura Tolomeo, Defendant, represented by Terrence Michael Jordan,
Jordan Law P.C..
MOLYCORP INC: No Deal Reached with Committee After Mediation
------------------------------------------------------------
Key parties in the Chapter 11 cases of Molycorp Inc. were sent to
mediation in December but no settlement was reached. The Official
Committee of Unsecured Creditors still insists that the Debtors'
Chapter 11 plan filed in November 2015 forces an expedited sale and
plan process that solely benefits secured creditor Oaktree Capital
Management, L.P.
The Committee notes that it and the Ad Hoc Group of 10% Noteholders
have outlined terms of a proposed alternative plan for the
Debtors.
On Nov. 13, 2015, the Debtors filed a Chapter 11 plan and
disclosure statement that's backed by Oaktree Capital Management,
L.P.
On Nov. 6, 2015, the Committee and the Ad Hoc 10% Noteholders filed
objections to the Debtors' motion for an extension of their
exclusive periods to propose a Chapter 11 plan, and a cross-motion
for termination of exclusivity. The Committee and the Ad Hoc 10%
Noteholders submitted a proposed term sheet for the competing plan
of reorganization that they would file if exclusivity were
terminated or modified.
On Nov. 11, 2015, the Debtors filed proposed bidding procedures
that contemplate a Jan. 4, 2016 bid deadline and Jan. 7 auction for
substantially all assets. The Debtors said they will seek approval
of the sale or sales of substantially all of their assets pursuant
to the Chapter 11 Plan only in the event that the conditions
necessary for the "Entire Company Sale Trigger" occur.
On Nov. 16, 2015, the Court adjourned the hearing on the Debtors'
Exclusivity Extension Motion and the Motions to Terminate
Exclusivity until Dec. 8, 2015, while sending the parties to
mediation.
On Nov. 20, 2015, the Court entered its order directing the
Debtors, the Committee, the Ad Hoc Group of 10% Noteholders, and
Oaktree (collectively, the "Mediation Parties") to participate in
mediation with the Honorable Robert D. Drain. The Mediator is
authorized to mediate any issues concerning, among other things,
the sale process and the issues relating to the Oaktree Plan,
including the Debtors' exclusive period to file a Chapter 11 plan
and solicit acceptances thereof, the contents of the Oaktree Plan
and any related claims of the Mediation Parties.
In connection with the Mediation, Oaktree agreed to extend the
maturity date of the DIP financing by the same number of days taht
elapse from Nov. 16, 2015, until the court-ordered mediation
concludes. Nevertheless, the Mediation with respect to certain
issues, including exclusivity and the bidding procedures, is
ongoing. Accordingly, the new DIP financing maturity date has not
yet been established.
On Nov. 17, 2015, the Debtors filed their motion seeking approval
of the Disclosure Statement and a proposed timeline that includes a
Jan. 27 deadline for qualified bids, a Feb. 1 auction, and a Feb. 8
confirmation hearing.
On Nov. 24, 2015, the Debtors filed certain exhibits, which for the
first time revealed the Debtors' Valuation Analysis and Liquidation
Analysis.
On Nov. 30, 2015, the Mediation Parties participated in an initial
mediation session. At the conclusion of that session, the
Mediation Parties agreed to participate in a second mediation
session on Dec. 10, 2015. The Mediation Parties participated in
the second mediation session but no settlement was reached.
On Dec. 23, 2015, the Committee filed its motion seeking standing
to pursue certain causes of action and attached to such motion a
draft complaint against Oaktree and certain of the Debtors'
officers and directors.
A hearing to consider approval of the Disclosure Statement is
scheduled to be held on January 8, 2016 at 10:00 a.m. (ET) before
the Honorable Christopher S. Sontchi in the United States
Bankruptcy Court for the District of Delaware, 824 N. Market
Street, 5th Floor, Courtroom No. 6, Wilmington, Delaware 19801.
The Committee has submitted objections to the Disclosure Statement
as well as the Bidding Procedures.
About Molycorp, Inc.
Molycorp Inc. -- http://www.molycorp.com/-- is a global rare
earths and rare metals producer. Molycorp owns several prominent
rare earth processing facilities around the world. It has a
workforce of 2,530 employees at locations on three continents.
Molycorp's Mountain Pass Rare Earth Facility in San Bernardino
County, California, is home to one of the world's largest and
richest deposits of rare earths.
Molycorp has corporate offices in the United States, Canada and
China. CEO Geoffrey R. Bedford, and other senior management
members are located in Molycorp's corporate offices in Toronto,
Canada. Other senior manageemnt members are located at its U.S.
corporate headquarters in Greendwood Village, Colorado.
Molycorp reported a net loss of $623 million in 2014, a net loss
of $377 million in 2013 and a net loss of $475 million in 2012.
As of March 31, 2015, the Company had $2.49 billion in total
assets, $1.78 billion in total liabilities and $709 million in
total stockholders' equity.
Molycorp and its North American subsidiaries, together with
certain of its non-operating subsidiaries outside of North
America, filed Chapter 11 voluntary petitions in Delaware (Bankr.
D. Del. Lead Case No. 15-11357) on June 25, 2015, after reaching
agreement with a group of lenders on a financial restructuring.
The Chapter 11 cases of Molycorp and 20 affiliated debts are
pending before Judge Christopher S. Sontchi.
The agreement provides for a financial restructuring of the
Company's $1.7 billion in debt and provides up to $225 million in
gross proceeds in new financing to support operations while the
Company completes negotiations with creditors.
The Company's operations outside of North America, with the
exception of non-operating companies in Luxembourg and Barbados,
are excluded from the filings. Molycorp Rare Metals (Oklahoma),
LLC, with operations in Quapaw, Oklahoma, also is excluded from
the filings as it is not 100% owned by the Company.
Molycorp is being advised by the investment banking firm of Miller
Buckfire & Co. and is receiving financial advice from
AlixPartners, LLP. Jones Day and Young, Conaway, Stargatt &
Taylor
LLP act as legal counsel to the Company in this process. Prime
Clerk serves as claims and noticing agent.
Secured creditor Oaktree Capital Management L.P., consented to the
use of cash collateral and to extend postpetition financing.
On July 8, 2015, the U.S. trustee overseeing the Chapter 11 case
of Molycorp Inc. appointed eight creditors of the company to serve
on the official committee of unsecured creditors.
MOLYCORP INC: Oaktree Plan a Sham Transaction, Says Committee
-------------------------------------------------------------
The Official Committee of Unsecured Creditors in Molycorp Inc., et
al.'s Chapter 11 cases is asking the U.S. Bankruptcy Court for the
District of Delaware to reject the disclosure statement explaining
the Debtors' proposed Chapter 11 plan.
A hearing to consider approval of the Disclosure Statement is
scheduled to be held on January 8, 2016 at 10:00 a.m. (ET) before
the Honorable Christopher S. Sontchi in the United States
Bankruptcy Court for the District of Delaware, 824 N. Market
Street, 5th Floor, Courtroom No. 6, Wilmington, Delaware 19801.
Plan Patently Unconfirmable
In a Dec. 30, 2015 filing, the Creditors Committee asked the Court
to reject the Disclosure Statement because the Oaktree Plan is
patently unconfirmable.
"Here, the Debtors utterly fail to explain the weaknesses of
Oaktree's claims, the unprecedented nature of their effort to gift
the Molycorp business to Oaktree through a sham transaction
involving improper credit bidding, aand the grant of releases to
exculpate the Debtors' directors, officers and outside counsel.
Valuable causes of action against a wide variety of parties
including insiders are being waived in the Oaktree Plan with no
attempt to value the claims, no evidence of the overall fairness of
such a deal, no justification for a Bankruptcy Rule 9019
settlement, and no indicia of good faith. In accordance with
decisions of the Third Circuit and numerous other courts, the
inclusion of the 9019 Settlement in the Oaktree Plan, coupled with
the Death Trap provision and the other Oaktree gifts, are
sufficient grounds for the Court to deny confirmation of the Plan
at the hearing to consider approval of the Disclosure Statement."
Plan Outline Lacks Adequate Information
The Creditors Committee is arguing that the Court should not
approve the Disclosure Statement for several reasons.
"First, the proposed broad releases of the Debtors' former and
current officers and directors are improper and raise a voting
issue that must be addressed prior to solicitation of acceptances
of the Oaktree Plan. Indeed, the releases are being forced on
creditors and the Committee through the Oaktree Pan's "death trap"
provisions. This is particularly egregious given that the
Committee has filed its motion for standing to pursue estate causes
of action and a proposed complaint detailing, in over 120 pages,
the very precise and meritorious claims against the directors and
officers."
The Committee also contends the Disclosure Statement does not
contain adequate information as required by Section 1125 of the
Bankruptcy Code. The Disclosure Statement lacks basic information
on critical items required for creditors to make an informed
judgment about the Oaktree Plan including:
a) estimated recoveries for unsecured creditors, including
potential recoveries from insurance proceeds and unencumbered
cash;
b) whether the Debtors' assets will be sold at all;
c) the legal basis for, and the proposed structure of, Oaktree's
acquisition via credit bid for assets over which it has no liens,
which assets are held by entities against which Oaktree may have no
allowed claims.
d) the benefits (or lack thereof) to unsecured creditors of a
Bankruptcy Rule 9019 Settlement with Oaktree that results in the
releases of causes of action, including those set forth in the
Proposed Complaint, that could be worth hundreds of millions of
dollars, not only against Oaktree but also against the Debtors'
officers, directors and certain professionals;
e) information on tax matters, including (i) the potential to
increase the value of all creditors of the Debtors' losses through
a worthless stock deduction, most of which would not be subject to
the limits of Section 382 of title 26, United States Code and (ii)
the rationale for bestowing the benefits of net operating losses on
Oaktree, which is not acquiring the entity (Molycorp, Inc.) that
controls such net operating losses;
f) the rationale for unprecedented "death trap" provisions that
strip unsecured creditors of their distributions (which are a
pittance) if the Committee or certain other parties merely object
to the Oaktree Plan;
g) failure to explain that checking the "Opt Out" box on the
ballot nonetheless results in the granting of a release if the
creditor votes for the plan;
h) the available objections to the allowance of Oaktree's claims
under Sections 502 and 506 of the Bankruptcy Code, as well as
applicable non-bankruptcy law, for an early payment premium and
stipulated loss value, original share discount and certain otehr
amounts, and the reasons the Debtors have not compromised any such
amounts under the Oaktree Plan;
i) the reasons that the proposed Voting and Tabulation Procedures
permit Oaktree to vote on the Oaktree Plan if its claims are
disputed; and
j) alternatives to the Oaktree Plan proposed by the Committee of
the Ad Hoc Group of 10% Noteholders.
Objection Redacted
The Committee redacted certain portions of its Disclosure Statement
Objection. The Committee has filed a motion for authorization to
file under seal an unredacted version of its objection.
Aside from the Committee, objections were also filed by (i) the
United Steel, Paper and Forestry, Rubber, Manufacturing, Energy,
Allied Industrial and Service Workers International Union
("United Steelworkers"), (ii) UMB Bank, National Association, as
Indenture Trustee, (iii) the United States Trustee, and (iv)
Westchester Fire Insurance Company, (v) Bond Safeguard Insurance
Co. and Lexon Insurance Co., Ironshore Indemnity, Inc.
The Official Committee of Unsecured Creditors' attorneys:
William P. Bowden, Esq.
Gregory A. Taylor, Esq.
Benjamin W. Keenan, Esq.
Stacy L. Newman, Esq.
ASHBY & GEDDES, P.A.
500 Delaware Avenue, 8th Floor
P.O. Box 1150
Wilmington, DE 19899
Telephone: (302)654-1888
Facsimile: (302)654-2067
E-mail: wbowden@ashby-geddes.com
gtaylor@ashby-geddes.com
bkeenan@ashby-geddes.com
snewman@ashby-geddes.com
- and -
Luc A. Despins, Esq.
Andrew Tenzer, Esq.
Robert E. Winter, Esq.
PAUL HASTINGS LLP
Park Avenue Tower
75 East 55th Street, First Floor
New York, NY 10022
Telephone: (212)318-6000
E-mail: lucdespins@paulhastings.com
andrewtenzer@paulhastings.com
robertwinter@paulhastings.com
Dual-Track Plan
As reported in the Nov. 10, 2015 edition of the TCR, Molycorp Inc.
and its debtor affiliates filed a joint plan of reorganization and
accompanying disclosure statement, which contemplate two different
potential outcomes for the Chapter 11 cases.
One potential outcome is the sale of substantially all of the
Debtors' assets, in one or more transactions, and the distribution
to creditors of the proceeds from the sale on the effective date of
the Plan. Alternatively, the Plan proposes the sale, or
liquidation, of only the assets of certain Debtors associated with
the ownership and operation of the Debtors' Mountain Pass rare
earth mining facility located in San Bernardino County, California,
and the reorganization around the Debtors' remaining business
units.
Currently, the Debtors are pursuing a sale process for their entire
business. Under the Plan, however, the Debtors will seek to
consummate the sale only if (1) Molycorp, Inc.'s board of directors
determines that a sale maximizes the value of the Debtors' estates
and (2) the proceeds of the sale are sufficient to pay certain
claims under the Plan, including payment in full of various claims
asserted by Oaktree Capital Management, L.P.
The Stand-Alone Reorganization may be implemented in a number of
different ways, including as a recapitalization of Parent, a
transfer by Parent of its assets (including equity interests in
Parent Subsidiaries) to a new company, or transfers of certain
assets within the group to a new company. The exact steps to
implement the Stand-Alone Reorganization will be determined by the
Debtors, subject to the Oaktree Consent Right.
The original timeline for the Debtors' proposed sales process
contemplated a Jan. 4, 2016 qualified bids deadline, and an auction
on Jan. 7 to 8.
A full-text copy of the Disclosure Statement dated Nov. 3, 2015, is
available at http://bankrupt.com/misc/MOLYCORPds1103.pdf
About Molycorp, Inc.
Molycorp Inc. -- http://www.molycorp.com/-- is a global rare
earths and rare metals producer. Molycorp owns several prominent
rare earth processing facilities around the world. It has a
workforce of 2,530 employees at locations on three continents.
Molycorp's Mountain Pass Rare Earth Facility in San Bernardino
County, California, is home to one of the world's largest and
richest deposits of rare earths.
Molycorp has corporate offices in the United States, Canada and
China. CEO Geoffrey R. Bedford, and other senior management
members are located in Molycorp's corporate offices in Toronto,
Canada. Other senior manageemnt members are located at its U.S.
corporate headquarters in Greendwood Village, Colorado.
Molycorp reported a net loss of $623 million in 2014, a net loss
of $377 million in 2013 and a net loss of $475 million in 2012.
As of March 31, 2015, the Company had $2.49 billion in total
assets, $1.78 billion in total liabilities and $709 million in
total stockholders' equity.
Molycorp and its North American subsidiaries, together with
certain of its non-operating subsidiaries outside of North
America, filed Chapter 11 voluntary petitions in Delaware (Bankr.
D. Del. Lead Case No. 15-11357) on June 25, 2015, after reaching
agreement with a group of lenders on a financial restructuring.
The Chapter 11 cases of Molycorp and 20 affiliated debts are
pending before Judge Christopher S. Sontchi.
The agreement provides for a financial restructuring of the
Company's $1.7 billion in debt and provides up to $225 million in
gross proceeds in new financing to support operations while the
Company completes negotiations with creditors.
The Company's operations outside of North America, with the
exception of non-operating companies in Luxembourg and Barbados,
are excluded from the filings. Molycorp Rare Metals (Oklahoma),
LLC, with operations in Quapaw, Oklahoma, also is excluded from
the filings as it is not 100% owned by the Company.
Molycorp is being advised by the investment banking firm of Miller
Buckfire & Co. and is receiving financial advice from
AlixPartners, LLP. Jones Day and Young, Conaway, Stargatt &
Taylor
LLP act as legal counsel to the Company in this process. Prime
Clerk serves as claims and noticing agent.
Secured creditor Oaktree Capital Management L.P., consented to the
use of cash collateral and to extend postpetition financing.
On July 8, 2015, the U.S. trustee overseeing the Chapter 11 case
of Molycorp Inc. appointed eight creditors of the company to serve
on the official committee of unsecured creditors.
MOLYCORP: Plan Hearing on Friday; Liquidation Analysis etc. Filed
-----------------------------------------------------------------
Molycorp, Inc., et al., on Dec. 24, 2015, submitted certain
exhibits to their Disclosure Statement and certain information
relating to their proposed Chapter 11 Plan. The documents
include:
* Liquidation Analysis,
* Prospective Financial Information,
* Downstream Business Valuation Report, and
* NOL Valuation Report.
According to the Liquidation Analysis, in a Chapter 7 scenario,
holders of DIP Financing Claims against the Debtors will have a
recovery of 22% to 23%; holders of administrative claims will have
a recovery of 6%; holders of 10% Notes secured claims will have a
recovery of 27% to 34% and holders of general unsecured claims and
subordinated convertible claims would have 0% recovery.
The Debtors also disclosed that pursuant to Section I.A.136 of
their Joint Plan of Reorganization, filed on Nov. 3, 2015, the
Oaktree Equipment Reserve Price will be $30,000,000.
A copy of the Exhibits is available for free at:
http://bankrupt.com/misc/Molycorp_951_DS_Exhibits.pdf
A hearing to consider approval of the Disclosure Statement is
scheduled to be held on January 8, 2016 at 10:00 a.m. (ET) before
the Honorable Christopher S. Sontchi in the United States
Bankruptcy Court for the District of Delaware, 824 N. Market
Street, 5th Floor, Courtroom No. 6, Wilmington, Delaware 19801.
Dual-Track Plan
As reported in the Nov. 10, 2015 edition of the TCR, Molycorp Inc.
and its debtor affiliates filed a joint plan of reorganization and
accompanying disclosure statement, which contemplate two different
potential outcomes for the Chapter 11 cases.
One potential outcome is the sale of substantially all of the
Debtors' assets, in one or more transactions, and the distribution
to creditors of the proceeds from the sale on the effective date of
the Plan. Alternatively, the Plan proposes the sale, or
liquidation, of only the assets of certain Debtors associated with
the ownership and operation of the Debtors' Mountain Pass rare
earth mining facility located in San Bernardino County, California,
and the reorganization around the Debtors' remaining business
units.
Currently, the Debtors are pursuing a sale process for their entire
business. Under the Plan, however, the Debtors will seek to
consummate the sale only if (1) Molycorp, Inc.'s board of directors
determines that a sale maximizes the value of the Debtors' estates
and (2) the proceeds of the sale are sufficient to pay certain
claims under the Plan, including payment in full of various claims
asserted by Oaktree Capital Management, L.P.
The Stand-Alone Reorganization may be implemented in a number of
different ways, including as a recapitalization of Parent, a
transfer by Parent of its assets (including equity interests in
Parent Subsidiaries) to a new company, or transfers of certain
assets within the group to a new company. The exact steps to
implement the Stand-Alone Reorganization will be determined by the
Debtors, subject to the Oaktree Consent Right.
The original timeline for the Debtors' proposed sales process
contemplated a Jan. 4, 2016 qualified bids deadline, and an auction
on Jan. 7 to 8.
A full-text copy of the Disclosure Statement dated Nov. 3, 2015, is
available at http://bankrupt.com/misc/MOLYCORPds1103.pdf
About Molycorp, Inc.
Molycorp Inc. -- http://www.molycorp.com/-- is a global rare
earths and rare metals producer. Molycorp owns several prominent
rare earth processing facilities around the world. It has a
workforce of 2,530 employees at locations on three continents.
Molycorp's Mountain Pass Rare Earth Facility in San Bernardino
County, California, is home to one of the world's largest and
richest deposits of rare earths.
Molycorp has corporate offices in the United States, Canada and
China. CEO Geoffrey R. Bedford, and other senior management
members are located in Molycorp's corporate offices in Toronto,
Canada. Other senior manageemnt members are located at its U.S.
corporate headquarters in Greendwood Village, Colorado.
Molycorp reported a net loss of $623 million in 2014, a net loss
of $377 million in 2013 and a net loss of $475 million in 2012.
As of March 31, 2015, the Company had $2.49 billion in total
assets, $1.78 billion in total liabilities and $709 million in
total stockholders' equity.
Molycorp and its North American subsidiaries, together with
certain of its non-operating subsidiaries outside of North
America, filed Chapter 11 voluntary petitions in Delaware (Bankr.
D. Del. Lead Case No. 15-11357) on June 25, 2015, after reaching
agreement with a group of lenders on a financial restructuring.
The Chapter 11 cases of Molycorp and 20 affiliated debts are
pending before Judge Christopher S. Sontchi.
The agreement provides for a financial restructuring of the
Company's $1.7 billion in debt and provides up to $225 million in
gross proceeds in new financing to support operations while the
Company completes negotiations with creditors.
The Company's operations outside of North America, with the
exception of non-operating companies in Luxembourg and Barbados,
are excluded from the filings. Molycorp Rare Metals (Oklahoma),
LLC, with operations in Quapaw, Oklahoma, also is excluded from
the filings as it is not 100% owned by the Company.
Molycorp is being advised by the investment banking firm of Miller
Buckfire & Co. and is receiving financial advice from
AlixPartners, LLP. Jones Day and Young, Conaway, Stargatt &
Taylor
LLP act as legal counsel to the Company in this process. Prime
Clerk serves as claims and noticing agent.
Secured creditor Oaktree Capital Management L.P., consented to the
use of cash collateral and to extend postpetition financing.
On July 8, 2015, the U.S. trustee overseeing the Chapter 11 case
of Molycorp Inc. appointed eight creditors of the company to serve
on the official committee of unsecured creditors.
NATURAL PORK: To Seek Approval of Joint Liquidating Plan on Jan. 8
------------------------------------------------------------------
U.S. Bankruptcy Judge Anita L. Shodeen in December approved Natural
Pork Production II, LLP, et al.'s First Amendment to the Joint
Disclosure Statement for their Second Amended Joint Liquidating
Plan and set a Jan. 8, 2016 hearing to consider confirmation of the
Plan.
Judge Shodeen on Dec. 2, 2015 approved the First Amendment subject
to a modification. Paragraph 5 of the First Amendment to the
Disclosure Statement for the Second Amended Liquidating Plan will
be revised to state: "Additionally, the Debtors in the
Crawfordsville Case, the Baryon Case, the North Harlan Case and the
South Harlan Case will be dissolved and liquidated. The Natural
Pork Case shall by the sole surviving Reorganized Debtor operating
under the main case number."
Judge Shodeen set a Dec. 29, 2015 deadline for ballots and written
objections to confirmation of the Plan. The Debtor is required to
submit a balloting report by Jan. 6. The hearing on the Plan will
commence at 9:30 a.m. on Jan. 8, 2016 in Courtroom 2 at the U.S.
Courthouse Annex, 110 East Court Avenue, Des Moines, Iowa.
Outline & Summary of Chapter 11 Plan
Natural Pork and its four subsidiaries submitted a Chapter 11
liquidating plan that's being co-proposed by the Official Committee
of Unsecured Creditors. The Plan is supported by the Intercreditor
Committee ("IC Committee" OR "ICC") and the First National Bank of
Omaha ("FNBO").
Since the Petition Date, the Debtors have liquidated substantially
all of their individual and collective assets, with the exception
of the Windthorst asset, which shall be transferred to Lawrence
Handlos pursuant to the Joint Plan.
Joint Plan also seeks to have all 5 bankruptcy cases substantively
consolidated, so that all of the assets from all five of the
bankruptcy cases are pooled into one pot, and all of the Creditors
and Interest holders from all of the five bankruptcy cases share
from that one pot.
Through the liquidation of assets during the pendency of the
Bankruptcy Cases, the Plan Proponents believe the Debtors will have
sufficient Cash on hand to pay all Allowed Secured Creditors in
full, certain Unsecured Creditors in full and certain Unsecured
Creditors paid in part, on the Effective Date of the Joint Plan
Under the Plan, holders of general unsecured claims totaling
$216,520 (Class 8) will be paid at 100% of the allowed claims
without postpetition interest. Holders of allowed subordinated
unsecured claims totaling $11,594 (Class 9) will be paid at 90% of
the allowed claims, less such holder's pro rata share of the
obligation of Class 9 to fund 10% of the Administrative Claim
Overage.. The holders of the allowed unsecured claims of
subordinated note holders who are IC Class Members who are owed in
the aggregate $1,831,387 (Class 11) will receive a total
distribution of 90% of their allowed claims in lieu of receiving
any payment on their buy-sell notes. Holders of equity interests
(Class 13) will receive a pro rata share of $950,000 based on unit
ownership in Natural Pork.
The parties agreed to a global settlement after mediation was
conducted.
Pursuant to the Global Settlement, the Plan Proponents and other
mediation participants agreed that the Windthorst, Texas property
will be transferred pursuant to Section 363 of the Bankruptcy Code
to Lawrence Handlos, who will assume all risk and liability. The
transfer shall be in the form of an outright sale of the Windthorst
property including all assets and liabilities associated with the
property. The Plan Proponents and parties to the Global Settlement
have agreed, based on available information, that the Windthorst
property's potential environmental liabilities far exceed its value
to the estates. For this reason, purchaser Lawrence Handlos has
agreed to assume all risk and liability for the Windthorst property
in exchange for an Allowed Administrative Claim in the amount of
$500,000. This transfer may be consummated either before or after
the Effective Date of the Joint Plan, and may be approved and made
a part of the Joint Plan in connection with an order confirming the
Joint Plan.
The Joint Plan is a settlement of all of the Adversary Proceedings
and all of the Claims asserted by and between the Debtors, the ICC,
the SIA Parties, and other key parties, although it expressly
preserves personal claims held by Lawrence and Doris Handlos
against Steve Schmitz, Ron Beach, Ron Beach & Mona Jones,
Agriculture, Inc. and/or Wendell Burge.
A copy of the Disclosure Statement for the Second Amended Plan is
available for free at:
http://bankrupt.com/misc/Natural_P_830_DS_2nd_A_Plan.pdf
A copy of the amendment to the Disclosure Statement for the Second
Amended Plan is available for free at:
http://bankrupt.com/misc/Natural_P_852_Am_DS_2nd_A_Plan.pdf
Natural Pork Production II, et al.'s attorneys:
Jeffrey D. Goetz, Esq.
BRADSHAW, FOWLER, PROCTOR & FAIRGRAVE, P.C.
801 Grand Avenue, Suite 3700
Des Moines, IA 50309-8004
Tel: (515) 246-5817
Fax: (515) 246-5808
E-mail: goetz.jeffrey@bradshawlaw.com
The Official Committee of Unsecured Creditors' attorneys:
Aaron L. Hammer, Esq.
Mark S. Melickian, Esq.
SUGAR FELSENTHAL GRAIS & HAMMER LLP
30 N. LaSalle Street, Ste. 3000
Chicago, IL 60602
Tel: (312) 704-9400
Fax: (312) 372-7951
E-mail: ahammer@sugarfgh.com
mmelickian@sugarfgh.com
About Natural Pork
Hog raiser Natural Pork Production II, LLP, filed for Chapter 11
bankruptcy (Bankr. S.D. Iowa Case No. 12-02872) on Sept. 11, 2012,
in Des Moines. The Company formerly did business as Natural Pork
Production, LLC. The Debtor disclosed $31.9 million in asset and
$27.9 million in liabilities, including $7.49 million of secured
debt in its schedules.
Crawfordsville, LLC, Brayton, LLC, North Harlan, LLC, and South
Harlan, LLC are wholly-owned subsidiaries of Natural Pork, and they
each filed voluntary Chapter 11 petitions on Dec. 7, 2012.
All five Bankruptcy Cases are not jointly administered or
substantively consolidated pursuant to Bankruptcy Rule 1015, but
the Joint Plan proposes that the cases be substantively
consolidated upon Confirmation. Therefore, the Natural Pork case
is being designated herein as the Lead Case.
Bankruptcy Judge Anita L. Shodeen oversees the cases.
Donald F. Neiman, Esq., and Jeffrey D. Goetz, Esq., at Bradshaw,
Fowler, Proctor & Fairgrave, P.C., in Des Moines, Iowa, represent
the Debtor as general reorganization counsel. Attorneys at Davis,
Brown, Koehn, Shors & Roberts, P.C., in Des Moines, Iowa,
represent the Debtor as special litigation counsel.
Attorneys at Sugar, Felsenthal Grais & Hammer LLP, in Chicago,
represent the Official Committee of Unsecured Creditors. Robert C
Gainer, Esq. at Cutler Law Firm, P.C., in West Des Moines, Iowa,
represent the Committee as associate counsel. Conway MacKenzie,
Inc., serves as its financial advisor.
Gary W. Koch, Esq., and Michael S. Dove, Esq., represent AgStar
Financial Services, ACA, and AgStar Financial Services, FLCA, as
counsel.
Michael P. Mallaney, Esq., at Hudson Mallaney Schindler & Anderson,
in West Des Moines, Iowa, represents the IC Committee as counsel.
* * *
The bankruptcy judge ordered the Debtor, the Official Committee of
Unsecured Creditors and other key parties to participate in
mediation involving the Debtor's plan of reorganization. Following
mediation, the Debtor submitted a Second Amended Plan that's being
co-proposed by the Creditors Committee and backed by the IC
Committee and the First National Bank of Omaha.
NET DATA: Stradling Yocca Okayed as Corp. Transactional Counsel
---------------------------------------------------------------
The U.S. Bankruptcy Court for the Central District of California
authorized Net Data Centers, Inc., to employ Stradling Yocca
Carlson & Routh, P.C., as special counsel for corporate
transactional matters, effective as of Aug. 6, 2015.
Paul A. Beck, Esq., counsel for the Debtor, maintained that the
Court should grant the application because no response and request
for hearing has been timely served on the movant.
SYCR has served as special corporate counsel for approximately nine
months from May 2014 to February 2015.
Services to be rendered as special corporate transactional counsel
will consist of advising the Debtor with regard to certain
transactional matters, including contracting to provide
transitional services with respect to the Company's own data
centers and third party data centers, well as the purchase and sale
of certain of the Company's data center assets, including its
intellectual property assets, equipment, and data center management
service agreements.
Pursuant to the motion, SYCR received payment for services in the
amount of $69,055 during the period Feb. 24, 2012, until Feb. 23,
2014. In the period Nov. 25, 2013, until Feb. 23, 2014, SYCR
received these payments: $6,680; $30,000 and $32,375.
To the best of the Debtor's knowledge, SYCR is a "disinterested
person" as that term is defined in Section 101(14) of the
Bankruptcy Code.
About Net Data Centers
Net Data Centers, Inc., filed a Chapter 11 bankruptcy petition
(Bankr. C.D. Cal. Case No. 15-12690) on Feb. 23, 2015. Pervez
P. Delawalla, the president & CEO, signed the petition. The
Hon. Sheri Bluebond is assigned to the case. William F Govier,
Esq., at Lesnick Prince & Pappas LLP, serves as counsel to the
Debtor.
The Debtor disclosed, in its amended schedules, $9,566,908 in
assets and $13,352,373 in liabilities. In its original schedules,
the Debtor disclosed $9,110,070 in assets and $5,236,687 in
liabilities.
The U.S. trustee appointed three creditors to serve on the
Official
Committee of Unsecured Creditors. The Committee is represented by
Buchalter Nemer, APC.
NETTALK.COM INC: Posts Net Loss, Has Going Concern Doubt
--------------------------------------------------------
NetTalk.com, Inc. reported a net loss of $650,998 for the three
months ended September 30, 2015, compared to a net loss of $682,019
for the same period in 2014.
"We have never sustained profits and our losses could continue,"
Anastasios Kyriakides, chief executive officer, and Steve Healy,
chief financial officer of the company said in a November 18, 2015
regulatory filing with the U.S. Securities and Exchange Commission.
"Without sufficient additional capital to repay our indebtedness
as it matures, we may be required to significantly scale back our
operations, significantly reduce our headcount, seek protection
under the provisions of the U.S. Bankruptcy Code, and or
discontinue many of our activities which could negatively affect
our business and prospects. Our current efforts to raise capital
may not be successful on terms satisfactory to the company, or at
all."
The officers emphasized: "We incurred net losses of $650,998 and
$2,227,628 for the three and nine months ended September 30, 2015
compared to losses of $682,019 and $1,673,029 for the three and
nine months ended September 30, 2014, respectively. As of
September 30, 2015, we had $7,429,566 in debt, after deducting
applicable discount, of which $7,229,566 is current which includes
$1,400,000 in a short term mortgage payable due November 29, 2015.
The company raised approximately $25,000 in a convertible
promissory note in 2015. As of September 30, 2015 and 2014, the
company had negative working capital of $13,581,333 and $9,233,886,
respectfully.
"Our current cash resources, together with anticipated future cash
flows from operating activities, may not be sufficient to fund our
operations or debt that is maturing in 2015 or that is due on
demand. In light of these circumstances, we are seeking additional
capital through public or private debt or equity financing.
However, there are no assurances that those efforts will be
successful or that additional capital will be available on terms
that do not adversely affect our existing stockholders or restrict
our operations, if it is available at all.
"Also, any equity financing would likely be substantially dilutive
to our stockholders, particularly in light of the prices at which
our common stock has been recently trading. In addition, if we
raise additional funds through the sale of equity securities, new
investors could have rights senior to our existing stockholders.
The terms of any future financings may restrict our ability to
raise additional capital, which could delay or prevent the further
development or marketing of our products and services. Our need to
raise capital before the repayment of our debt becomes due may
require us to accept terms that may harm our business or be
disadvantageous to our current stockholders.
"The company has incurred significant recurring losses from
operations and is dependent on outside sources of funding for
continuation of its operations.
"Our independent registered public accounting firm issued its
report dated April 15, 2015, in connection with the audit of our
financial statements as of December 31, 2014, that included an
emphasis of a matter paragraph describing the existence of
conditions that raise substantial doubt about our ability to
continue as a going concern."
The officers further noted, "In order to address the need to
satisfy our continuing obligations and realize our long term
strategy, management has been reviewing various strategic
alternatives and has taken several steps and is considering
additional actions to improve our operating and financial results,
which we hope will be sufficient to provide the company with the
ability to continue as a going concern, including the following:
* Establish and build strategic alliances and partnerships with
companies offering complimentary products and services
providing synergies for those involved.
* Leverage our extensive call termination agreements to offer
wholesale call terminations to other carries powered by our
carrier grade propriety VoIP switching platform.
* Rental of available collocations space in our data center as
well as available space on our telecommunications tower.
* Aggressively pursue new revenue by utilizing our mobile
applications for use by our current and future subscriber base.
"There can be no assurance that the actions outlined will be
successful or any new financing will be available or that we will
obtain any such arrangements on terms suitable to us."
At September 30, 2015, the company had total assets of $3,299,392,
total liabilities of $14,149,212, and total stockholders' deficit
of $10,849,820.
A full-text copy of the company's quarterly report is available for
free at: http://tinyurl.com/jaddexx
NetTalk.com, Inc. is a telephone company based in Miami Gardens,
Florida. The company provides, sells and supplies commercial and
residential telecommunication services, including services
utilizing voice over internet protocol (VoIP) technology, session
initiation protocol (SIP) technology, wireless fidelity technology,
wireless maximum technology, marine satellite services technology,
and similar type technologies.
NICHOLS CREEK: Chapter 11 Case Dismissed
----------------------------------------
The Hon. Jerry A. Funk of the Bankruptcy Court for the Middle
District of Florida dismissed the Chapter 11 case of Nichols Creek
Development, LLC, and terminated the automatic stay and of no
further force or effect.
Creditor Whitney Bank, formerly known as Hancock Bank, has
requested that the case be dismissed, or, alternatively, grant
relief from the automatic stay.
According to Judge Funk's findings of fact and conclusions of law,
the parties had stipulated to a number of facts. In addition,
Hancock presented the testimony of a witness. The Debtor did not
object to dismissal of the case. However, creditor Stokes
Holdings, LLLP, objected to the dismissal of the case and asked
that the case be converted to a case under Chapter 7.
About Nichols Creek
Nichols Creek Development, LLC, sought Chapter 11 bankruptcy for
protection (Bankr. M.D. Fla. Case No. 14-04699) on Sept. 26, 2014,
in Jacksonville, Florida. R.L. Mitchell signed the petition as
member manager.
The Debtor owns 270+ acre parcel of river front real property
commonly known as 9595 New Berlin Road Court, Jacksonville,
Florida. In its schedules, the Debtor said the property is valued
at $21.8 million and pledged as collateral to secured creditors
owed a total of $11.6 million.
The Law Offices of Jason A. Burgess, LLC, serves as the Debtor's
counsel.
OAK AND EMBER: Case Summary & 18 Largest Unsecured Creditors
------------------------------------------------------------
Debtor: Oak and Ember, Inc.
dba El Colibri Restaurante & Tequila Bar
6 Commercial Street
Mashpee, MA 02649
Case No.: 16-10012
Chapter 11 Petition Date: January 4, 2016
Court: United States Bankruptcy Court
District of Massachusetts (Boston)
Judge: Hon. Joan N. Feeney
Debtor's Counsel: Joseph S.U. Bodoff, Esq.
RUBIN AND RUDMAN LLP
50 Rowes Wharf
Boston, MA 02110
Tel: 617-330-7038
Fax: 617-330-7550
Email: jbodoff@rubinrudman.com
Estimated Assets: $100,000 to $500,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Robert Catania, president.
A list of the Debtor's 18 largest unsecured creditors is available
for free at http://bankrupt.com/misc/mab16-10012.pdf
PARKVIEW ADVENTIST: Hires Berry Dunn as Accountants
---------------------------------------------------
Parkview Adventist Medical Center seeks authorization from the U.S.
Bankruptcy Court for the District of Maine to employ Berry, Dunn,
McNeil & Parker, LLC as accountants.
The Debtor requires Berry Dunn to conduct an audit of certain
employee retirement plans for the fiscal year ending December 31,
2014, so that the Internal Revenue Service and Department of Labor
Form 5500 can be filed. The Debtor also requires Berry Dunn to
complete its corporate information returns (Forms 990 and 990T) for
the year ending December 31, 2014.
The primary accountants and/or auditors expected to be involved in
this matter are Mary Jalbert and Andrea Colfer; their hourly
billing rates are $345 and $235, respectively. The Debtor
understands that Berry Dunn has estimated that fees for the audit
work would total approximately $15,000 and that fees for completing
the Debtor's corporate tax returns are estimated to be
approximately $6,500.
Berry Dunn will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Mary Jalbert, principal of Berry Dunn assured the Court that the
firm is a "disinterested person" as the term is defined in Section
101(14) of the Bankruptcy Code and does not represent any interest
adverse to the Debtors and their estates.
Berry Dunn can be reached at:
Mary Jalbert, Esq.
BERRY, DUNN, McNEIL & PARKER, LLC
100 Middle Street
4th Floor, East Tower
Portland, ME 04101
Tel: (207) 541-2313
Fax: (207) 541-2313
E-mail: mjalbert@berrydunn.com
About Parkview Adventist
Parkview Adventist Medical Center, a Maine non-profit corporation,
operates the Parkview Hospital, a faith-based acute care community
hospital located in Brunswick, Maine, affiliated with the Seventh
Day Adventist Church. Its mission is to provide services
supporting the physical, emotional and spiritual wellness of its
patients.
Parkview sought Chapter 11 protection (Bankr. D. Maine Case No.
15-20442) in Portland, Maine, on June 16, 2015. The case is
assigned to Judge Peter G Cary.
The Debtor estimated $10 million to $50 million in assets and
debt.
According to the docket, the appointment of a health care ombudsman
is due by July 16, 2015. The deadline for filing claims is Oct. 7,
2015. The Debtor's plan and disclosure statement are due Oct. 14,
2015.
The Debtor is represented by George J. Marcus, Esq., at Marcus,
Clegg & Mistretta, PA, in Portlane, Maine.
PEP BOYS-MANNY: S&P Revises CreditWatch on 'B' CCR to Negative
--------------------------------------------------------------
Standard & Poor's Ratings Services revised the CreditWatch
placement on its ratings on Philadelphia-based Pep Boys–Manny,
Moe & Jack, including the 'B' corporate credit rating, to negative
from developing.
The CreditWatch revision follows Pep Boys' announcement that Icahn
Enterprises L.P.'s latest bid to acquire the company is a superior
proposal to Bridgestone Corp.'s. This outcome was reached after a
series of back and forth bids between the two bidders that began in
October 2015. On Dec. 30, 2015, Pep Boys terminated its merger
agreement with Bridgestone. While no capital structure details
have been disclosed regarding the Icahn acquisition, S&P believes
there is at least a 50% chance that leverage would increase from
current levels by the Icahn purchase.
S&P will resolve the CreditWatch placement on Pep Boys as S&P
receives more information on how the purchase by Icahn Enterprises
will be financed.
PETT FAMILY: Voluntary Chapter 11 Case Summary
----------------------------------------------
Debtor: Pett Family Revocable Trust #1
3244 Middlebury Lane
Charleston, SC 29414
Case No.: 16-00037
Nature of Business: Single Asset Real Estate
Chapter 11 Petition Date: January 4, 2016
Court: United States Bankruptcy Court
District of South Carolina (Charleston)
Judge: Hon. John E. Waites
Debtor's Counsel: Nathan D. Davis, Esq.
DAVIS LAW SC
12-A Carriage Lane
Charleston, SC 29407
Tel: (843) 571-4042
Email: nathan@davislawsc.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $100,000 to $500,000
The petition was signed by Eugene A. Pettinelli, trustee.
The Debtor did not include a list of its largest unsecured
creditors when it filed the petition.
PIER ENTERPRISES: Case Summary & 2 Largest Unsecured Creditors
--------------------------------------------------------------
Debtor: Pier Enterprises LLC
1612 12th Street
Kenosha, WI 53140
Case No.: 16-20027
Nature of Business: Single Asset Real Estate
Chapter 11 Petition Date: January 4, 2016
Court: United States Bankruptcy Court
Eastern District of Wisconsin (Milwaukee)
Debtor's Counsel: Anthony J. Kryshak, Esq.
KRYSHAK LAW OFFICE, LLC
6127 Green Bay Rd. Ste. 101
Kenosha, WI 53142
Tel: 262.764.2022
Fax: 262.764.2043
Email: anthony@kryshaklawoffice.com
Estimated Assets: $500,000 to $1 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Dusan Matic, owner/sole member.
A list of the Debtor's two largest unsecured creditors is available
for free at http://bankrupt.com/misc/wieb16-20027.pdf
PITTSBURGH GLASS: S&P Affirms 'B+' CCR, Outlook Stable
------------------------------------------------------
Standard & Poor's Ratings Services said that it has affirmed its
'B+' corporate credit rating on Pittsburgh Glass Works LLC (PGW).
The outlook is stable.
Subsequently, S&P withdrew all of its ratings on PGW at the
company's request.
"In our understanding, PGW has redeemed all of its outstanding
senior secured notes and effectively replaced them with private
term debt," said Standard & Poor's credit analyst Naomi Dsouza.
"Our rating and outlook on the company at the time of the
withdrawal reflected our expectation that PGW would generate
meaningful incremental revenue from its new facilities in Poland
and North Carolina and generate a free operating cash flow
(FOCF)-to-debt ratio of more than 5% while maintaining an adjusted
debt-to-EBITDA metric of less than 5x."
RAAM GLOBAL: Hires Blackhill Partners as Restructuring Advisor
--------------------------------------------------------------
RAAM Global Energy Company has retained Blackhill Partners, an
investment bank specializing in complex situations, as
restructuring advisor to guide the company through a financial and
operational reorganization.
RAAM is a privately held Delaware corporation engaged in the
exploration, development, production, exploitation and acquisition
of oil and natural gas properties. The company's producing assets
are located offshore in the Gulf of Mexico and onshore in
Louisiana, Texas, Oklahoma and California.
RAAM has retained Jim Latimer, managing director of Blackhill
Partners, as chief restructuring officer (CRO) to manage the
company's operations during its restructuring. Mr. Latimer has
more than 30 years' experience in energy restructuring, with
particular expertise in CRO, operational restructuring, and
distressed mergers and acquisitions.
"Obviously RAAM is not alone. It's tough for energy producers
everywhere," said Mr. Latimer. "The good news is that we have
worked with RAAM's creditors to engineer a plan that should allow
the company to emerge from bankruptcy stronger and leaner, with
more capital available for drilling."
About Blackhill Partners
Headquartered in Dallas, Texas, Blackhill Partners, LLC --
http://www.blackhillpartners.com/-- is an investment bank
specializing in complex situations. Blackhill's professionals have
advised Fortune 500 and middle-market companies on over $100
billion of mergers, acquisitions, financings and restructurings
across a broad range of industries, with particular depth in energy
and industrial businesses.
About RAAM Global
RAAM Global Energy Company, Century Exploration New Orleans, LLC,
Century Exploration Houston, LLC, and Century Exploration
Resources, LLC filed Chapter 11 bankruptcy petitions (Bankr. S.D.
Tex. Lead Case No. 15-35615) on Oct. 26, 2015. The petitions were
signed by James R. Latimer as chief restructuring officer.
RAAM Global is an independent oil and natural gas exploration and
production company engaged in the exploration, development,
production, exploitation, and acquisition of oil and natural gas
properties.
The Debtors estimated assets of more than $50 million and
liabilities in the range of $100 million to $500 million.
The Debtors listed unsecured trade and vendor claims in the
aggregate amount of $3.3 million.
RAZA SERVICES: Case Summary & 5 Largest Unsecured Creditors
-----------------------------------------------------------
Debtor: Raza Services, LLC
802 High Ridge Drive
Friendswood, TX 77546-3676
Case No.: 16-30113
Nature of Business: Single Asset Real Estate
Chapter 11 Petition Date: January 4, 2016
Court: United States Bankruptcy Court
Southern District of Texas (Houston)
Judge: Hon. Letitia Z. Paul
Debtor's Counsel: E Rhett Buck, Esq.
ATTORNEY AT LAW
3730 Kirby Dr, Ste 1200
Houston, TX 77098
Tel: 713-868-9447
Fax: 713-868-6157
Email: erhettbuck@aol.com
Total Assets: $1.29 million
Total Liabilities: $1.33 million
The petition was signed by Amir Raza, president.
A list of the Debtor's five largest unsecured creditors is
available for free at http://bankrupt.com/misc/txsb16-30113.pdf
RCS CAPITAL: To File Chapter 11 to Facilitate Restructuring
-----------------------------------------------------------
RCS Capital Corporation on Jan. 4 disclosed that it has reached an
agreement in principle with certain of its key stakeholders for a
new investment of $150 million and the restructuring of its debt
and capital structure. This agreement, which is supported by a
steering committee of first- and second-lien lenders representing a
majority of the principal amount outstanding, will allow the
Company to restructure its debt and balance sheet and to focus on
its retail advice division, Cetera Financial Group, one of the
nation's leading networks of independent broker-dealer firms. The
Company expects the restructuring to position Cetera for long-term
profitable growth under its existing senior management team, which
will continue to be led by R. Lawrence "Larry" Roth as Chief
Executive Officer of Cetera.
To implement its financial restructuring, RCS Capital intends to
file a voluntary petition for a prearranged Chapter 11 bankruptcy
in late January 2016. Pursuant to that filing, RCS Capital and its
senior secured lenders have agreed to pursue an expedited schedule
for the Company's emergence from Chapter 11. Cetera's member
broker-dealer firms will not be involved with the contemplated
Chapter 11 filing. RCS Capital's expectation is that Cetera's
current employees, advisors and trade vendors will not be affected
by RCS Capital's bankruptcy. As such, it is expected to remain
business-as-usual for Cetera's employees as well as the advisors
and the institutions that Cetera supports.
The purpose of the Chapter 11 filing is to improve RCS Capital's
balance sheet and capital structure by eliminating certain non-core
assets and liabilities. Pursuant to the Chapter 11 filing, most of
RCS Capital's corporate overhead expenses and other liabilities
(other than the restructured indebtedness owed to its
post-proceeding first- and second-lien secured creditors) will be
discharged and eliminated in the Chapter 11. The contemplated
Chapter 11 restructuring will eliminate the common and preferred
equity of RCS Capital. Other than the new proposed equity
retention program for Cetera financial advisors and key employees,
substantially all of the equity of the Company following the
restructuring will be owned by the current first- and second-lien
lenders.
The proposed balance sheet restructuring has support from holders
representing a majority in principal amount of first- and
second-lien lenders and contemplates a reduction of debt and the
elimination of preferred stock representing in excess of $500
million in the aggregate. The Company further announced, as an
integral part of the balance sheet restructuring, that a group of
its lenders have agreed in principle to invest $150 million in new
working capital into Cetera which the Company and the Cetera senior
leadership team intend to deploy to make continued significant
investments in technology, advisor growth and service enhancements
in what is already an industry-leading platform for the financial
institutions and financial advisors Cetera supports.
The agreement includes a retention program for Cetera Financial
Group-affiliated advisors and key employees made up of cash and
equity in the new post-bankruptcy company. Cetera and RCS
Capital's lenders have agreed in principle that the reorganization
will protect the current deferred compensation arrangements. The
restructuring and new investment is subject to the negotiation and
execution of definitive documentation, regulatory, court and other
approvals, and obtaining the approval of the requisite first- and
second lien- lenders, and is expected to be completed during the
second quarter of 2016.
R. Lawrence "Larry" Roth, who will continue to serve as Chief
Executive Officer of Cetera, commented, "RCS Capital's announcement
today defines the path for transforming Cetera into a private,
independently run organization that is dedicated exclusively to the
financial advisors and financial institutions we support. The
restructuring marks a fresh start that will place the issues of the
past months firmly behind Cetera, while providing the financial
advisor network with the capital and operational structure to
profitably grow its market leadership. We will move forward by
continuing to invest in exceptional tools, resources and platforms
for independent financial advisors and financial institutions-based
investment management programs across the country."
Mr. Roth continued, "Thanks to its autonomous operating and
financial structure within the RCS Capital framework, Cetera has
generated sufficient capital funding and solid cash flows from our
well-established broker-dealer firms. We expect to use the
anticipated $150 million of new working capital obtained through
this agreement to further cement Cetera's market position as a
dynamic, forward-thinking, and advisor- and client-driven provider
of investment advice to retail clients. Given this important
context, we emphasize to the advisors and institutions we support
that we do not expect the proposed restructuring of RCS Capital to
impact the existing deferred compensation plans or other related
compensation plans at Cetera, which are expected to remain in
effect in their current form."
RCS Capital also announced that, over the past several months, the
Company has made substantial progress in selling or closing
non-core assets of the Company in addition to other corporate
governance and leadership changes. These steps included:
-- Winding down Realty Capital Securities' wholesale
distribution business, a process which began earlier last month and
is expected to be completed by the end of the first quarter;
-- Winding down RCS Capital's investment banking, capital
markets and related advisory services business;
-- The sale of Hatteras for $5.5 million to its prior owners and
management and the elimination of approximately $20 million of earn
out liabilities, which is expected to close during the first
quarter of 2016;
-- Entering into a letter of intent to sell SK Research to prior
owners and management, which sale is expected to close later this
month;
-- Evaluation of strategic alternatives for its transfer agency
business, American National Stock Transfer, and its electronic
subscription processing and cybersecurity business, Docupace
Technologies; and
-- Winding down DirectVest crowdfunding platform and sale of
Trupoly white-label investor relationship portal.
In addition, the Company announced that it has entered into
forbearance agreements with a majority of first- and second-lien
lenders and the holders of its existing convertible notes, which
include:
A forbearance until January 29, 2016 that allowed the Company to
forgo the payment of $19.4 million of principal and interest that
would otherwise have been due on December 31, 2015; and
An agreement to permit the Company to retain the net cash proceeds
from the sale of the Hatteras business.
Mr. Roth concluded, "We fully expect the implementation of RCS
Capital's restructuring should free Cetera's management and
advisors to focus on what we and they do best -- deliver quality
investment advice and financial products through independent
advisors and financial institutions to retail clients across the
country. This has not always been an easy journey, and we thank
the advisors and institutions we serve for the remarkable loyalty
and patience they have shown to us throughout this time."
Finally, the Company announced the appointment of Bradley Scher as
a member of the board of directors, effectively immediately. Since
February 2002, Mr. Scher has been the managing member of Ocean
Ridge Capital Advisors, LLC, an independent consulting company
providing advice to companies, managements, investors and other
constituencies of companies experiencing financial or operating
challenges.
About Cetera Financial Group
Cetera Financial Group -- http://www.ceterafinancialgroup.com-- is
a network of independent retail broker-dealers empowering the
delivery of objective financial advice to investors across the
country through trusted financial advisors and financial
institutions. The network is comprised of ten
firms -- four legacy Cetera-branded firms (Cetera Advisors, Cetera
Advisor Networks, Cetera Investment Services, marketed as Cetera
Financial Institutions, and Cetera Financial Specialists) along
with First Allied Securities, Investors Capital, Legend Equities
Corporation, Summit Brokerage, VSR Financial Services and Girard
Securities.
Cetera Financial Group is the second largest independent financial
advisor network in the nation by number of advisors, as well as a
leading provider of retail services to the investment programs of
banks and credit unions. Cetera Financial Group delivers
award-winning wealth management and advisory platforms,
comprehensive broker-dealer and registered investment adviser
services, and innovative technology to approximately 9,500
independent financial professionals and over 600 financial
institutions nationwide. Through its distinct firms, Cetera
Financial Group offers the benefits of a large, established
broker-dealer and registered investment adviser, while serving
independent and institutions-based financial advisors in a way that
is customized to their needs and aspirations. Cetera Financial
Group is committed to helping advisors grow their businesses and
strengthen their relationships with clients.
About RCS Capital
RCS Capital Corporation (NYSE: RCAP) -- http://www.rcscapital.com
-- is a holding company of Cetera Financial Group.
RELATIVITY MEDIA: Committee Endorses Plan of Reorganization
-----------------------------------------------------------
Relativity Media LLC on Jan 4 disclosed that the Official Committee
of Unsecured Creditors has formally stated its support for the
Proponents' Plan of Reorganization Pursuant to Chapter 11 of the
Bankruptcy Code and recommends that all unsecured creditors vote to
accept the Plan.
"We have been working tirelessly with all parties to develop a Plan
of Reorganization that allows Relativity to emerge from Chapter 11
as a well-capitalized, strong company," said Ryan Kavanaugh,
Chairman and CEO, Relativity. "We are pleased to receive this
support from the Creditors' Committee, which further clears the
path for the company to emerge in early 2016 with a robust slate of
films and the flexibility to execute our strategy as a fully
integrated 360 degree content engine."
A court hearing to consider confirmation of the Plan is scheduled
for February 1, 2016. Mr. Kavanaugh continued, "We are excited to
move forward with normal day-to-day operations on February 1 and
are incredibly grateful to the Creditors' Committee for their
support."
Relativity Studios recently announced 2016 release dates for the
following films: The Disappointments Room, Before I Wake, Kidnap,
Masterminds and Strangers 2. In addition, the studio is scheduled
to begin production on The Crow in March of this year.
This release is not intended as a solicitation for a vote on the
Modified Plan. The Creditors' Committee letter is included below:
To the Unsecured Creditors of Relativity Fashion, LLC, et. al.:
The Official Committee of Unsecured Creditors (the "Committee")
appointed pursuant to 11 U.S.C. Section 1102 in the
above-referenced jointly administered Chapter 11 cases of
Relativity Fashion, LLC and its affiliated debtors and debtors in
possession in the above Chapter 11 cases ()Debtors"), writes to you
in connection with the solicitation of your vote on the Plan
Proponents' Second Amended Plan Of Reorganization Pursuant To
Chapter 11 Of The Bankruptcy Code (as amended or modified from time
to time, the "Plan"). Any capitalized terms used but not defined
herein have the meanings ascribed to such terms in the Plan.
THE COMMITTEE, WHICH REPRESENTS THE INTERESTS OF ALL OF THE
DEBTORS' UNSECURED CREDITORS, SUPPORTS THE PLAN AND RECOMMENDS THAT
ALL UNSECURED CREDITORS VOTE TO ACCEPT THE PLAN IN ACCORDANCE WITH
THE INSTRUCTIONS SET FORTH ON THEIR RESPECTIVE BALLOTS. Each
creditor must, however, make its own independent decision as to
whether the Plan is acceptable to that creditor before it votes to
accept or reject the Plan.
Case Background. The Debtors commenced these Chapter 11 cases on
July 30, 2015 intending, with the active support and direction of
their senior secured prepetition lenders, to sell substantially all
of their assets within approximately 60 days. The proposed sale
was based upon a $250 million credit bid submitted by certain of
the senior secured prepetition lenders ("Stalking Horse"), who,
together, were owed more than $360 million, and whose bid was
subject to higher or better offers and Bankruptcy Court approval.
The Stalking Horse lenders also agreed to provide debtor in
possession ("DIP") financing for a period up to the anticipated
sale closing date, October 20, in the amount of $49.5 million,
which DIP financing was to be credited against the $250 million
purchase price.
The Committee was formed on August 7, shortly after the Petition
Date, and with its professionals quickly did its best to get up to
speed and evaluate, among other things, the Stalking Horse's offer,
the Debtors' proposed sale procedures, and DIP financing terms. On
August 12, the Committee filed objections to, among other things,
the expedited marketing and auction process proposed by the Debtors
[Dkt. No. 165] in connection with the Stalking Horse Sale, and
certain terms of the proposed DIP financing [Dkt. No. 170]. The
objections of the Committee were consensually resolved prior to the
hearing to approve the sale procedures and the DIP financing on a
final basis, which resulted in certain material changes to both the
proposed sale procedures and to the financing terms that were
favorable to unsecured creditors, including: (i) the Committee's
right to fully participate in and monitor the sale and an extended
marketing process, (ii) the estates' retention of any and all
claims and causes of action in favor of the estates against third
parties (e.g., Chapter 5 Avoidance Actions were neither to be sold
to a third party nor used as collateral for the DIP financing) and
(iii) $2 million to be paid by the Stalking Horse into the
Committee's counsel segregated account at the sale closing for the
benefit of the general unsecured creditors. Notwithstanding the
modified sale procedures and many third parties expressing an
interest in the Debtors' businesses and related assets (or parts
thereof), the auction failed to generate any higher or better
offers.
Formation of the Plan. As a result of intense and extensive
negotiations among the Debtors, the Debtors' founder and CEO, Ryan
Kavanaugh, the Committee, the Stalking Horse and other parties in
interest, it was agreed that (i) the Debtors would sell only their
television assets to the Stalking Horse in consideration for a
credit bid of $125 million, (ii) Mr. Kavanaugh and other investors
would purchase the DIP loan and agree to limit the claim against
the Debtors' estates for the same to $35 million (subsequently it
was determined that Manchester would be the purchaser), and (iii)
the Debtors would pursue a Chapter 11 plan of reorganization around
their remaining film, sports and music businesses and related
assets with new debt and equity capital being provided.
The Committee, having already secured $2 million in cash and
third-party causes of action for the benefit of the general
unsecured creditors under its agreement with the Stalking Horse,
has been supportive of a plan process that affords the obvious
benefits of maintaining the Debtors as a going concern. Further,
it is anticipated that in the proposed reorganization, the dilution
of the general unsecured creditor claim pool will be minimized by
(i) elimination of hundreds of millions of dollars of indebtedness
(whether by voluntary waiver, conversion to equity in the
Reorganized Debtors, or Reinstatement) and (ii) assumption of
executory contracts and payment of cure costs, rather than creation
of rejection damages claims, which will enhance the recovery to
general unsecured creditors—a result which appeared impossible in
early October following the sale bid deadline.
Form of Distributions. As described more fully in the Disclosure
Statement, under the Plan, except to the extent that a Holder of an
Allowed General Unsecured Claim agrees to less favorable treatment,
on the Effective Date, the Reorganized Debtors shall be deemed
substantively consolidated for plan purposes only, and each Holder
of an Allowed General Unsecured Claim shall receive, subject to the
terms of the Plan, in full satisfaction, settlement, release and
discharge of, and in exchange for, such Claim, interests
representing its Pro Rata share of (i) the Guaranteed GUC Payment
and (ii) the GUC Causes of Action Interests; provided, however,
that the sum of the Guaranteed GUC Payment and the GUC Litigation
Trust Interests shall not exceed par. According to the Debtors,
after making certain assumptions, this should result in an
estimated recovery rate of 4 – 11.5% for the general unsecured
creditor class.
The Committee believes that the Plan described in the Disclosure
Statement represents a fair allocation of the Debtors' aggregate
value among their General Unsecured Creditors.
The description above only summarizes certain aspects of the
provisions contained in the Plan, and is not intended to be a
substitute for your review of the Disclosure Statement approved by
the Court. Creditors should carefully read the Plan and the
Disclosure Statement (including, without limitation, all of the
risk factors set forth therein) in their entirety before voting on
the Plan.
The Debtors have provided you with a Ballot to vote to accept or
reject the Plan. To have your vote counted, you must complete and
return this Ballot, in accordance with the procedures set forth
therein and in the Disclosure Statement, by no later than January
20, 2016 by 4:00 p.m. (Prevailing Eastern Time). PLEASE READ THE
DIRECTIONS ON THE BALLOT CAREFULLY AND COMPLETE YOUR BALLOT IN ITS
ENTIRETY BEFORE RETURNING IT TO THE AGENT.
Please direct any questions regarding this letter and the matters
discussed herein to counsel for the Committee, Togut, Segal & Segal
LLP, at 212-594-5000 (Attn: Frank A. Oswald).
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, 2015, completed its purchase of the assets of Relativity
Television.
After selling their TV business, the Debtors filed a proposed plan
of reorganization that will allow the Debtors to reorganize their
non-TV business units with a substantially de-levered balance sheet
utilizing new equity investments and new financing. Jim Cantelupe,
of Summit Trail Advisors, LLC, has committed to work with the
Debtors to raise up to $100 million of new equity to fund the Plan.
RESIDENTIAL CAPITAL: Trust Adopts Revised Compensation Program
--------------------------------------------------------------
The ResCap Liquidating Trust on Dec. 31 disclosed that its Board of
Trustees has adopted a revised compensation program for the
Liquidating Trustees. For information concerning the revised
program, please refer to the "Governance & Other Documents" tab on
the Trust's Web site http://www.rescapliquidatingtrust.com/
In addition, the Trust disclosed that notice of any future
modifications to the compensation program for the Liquidating
Trustees (including any additional retainer payments or incentive
compensation payments to the Trustees or their affiliates), any
material modifications to the Liquidating Trust Agreement of the
Trust and any appointment by the Board of a Liquidating Trustee to
fill a vacancy will be provided to Unit holders at least 30 days in
advance of effectiveness. Such notice will be made by issuing a
press release of general circulation and posting to the Trust's
website. If the holders of 25% or more of the outstanding Units
register objection to any such actions, representatives of the
Board will consult with the holders concerning such objection.
The Trust also announced that, effective January 1, 2016, Dubel &
Associates, LLC will replace Quest Turnaround Advisors, LLC as
Liquidating Trust Manager. John Dubel, the principal of Dubel &
Associates, remains a member of the Board, but as part of this
transition will step down as Chairman. Mr. Dubel will be replaced
as Chairman by Board member Mitchell Sonkin.
About Residential Capital
Residential Capital LLC, the unprofitable mortgage subsidiary of
Ally Financial Inc., filed for bankruptcy protection (Bankr.
S.D.N.Y. Lead Case No. 12-12020) on May 14, 2012. Neither Ally
Financial nor Ally Bank is included in the bankruptcy filings.
ResCap, one of the country's largest mortgage originators and
servicers, was sent to Chapter 11 with 50 subsidiaries amid
"continuing industry challenges, rising litigation costs and
claims, and regulatory uncertainty," according to a company
statement.
ResCap disclosed $15.7 billion in assets and $15.3 billion in
liabilities at March 31, 2012.
Centerview Partners LLC and FTI Consulting are acting as financial
advisers to ResCap. Morrison & Foerster LLP is acting as legal
adviser to ResCap. Curtis, Mallet-Prevost, Colt & Mosle LLP is the
conflicts counsel. Rubenstein Associates, Inc., is the public
relations consultants to the Company in the Chapter 11 case.
Morrison Cohen LLP is advising ResCap's independent directors.
Kurtzman Carson Consultants LLP is the claims and notice agent.
Ray C. Schrock, Esq., at Kirkland & Ellis LLP, in New York, serves
as counsel to Ally Financial.
ResCap sold most of the businesses for a combined $4.5 billion.
The Bankruptcy Court in November 2012 approved ResCap's sale of its
mortgage servicing and origination platform assets to Ocwen Loan
Servicing, LLC and Walter Investment Management Corporation for $3
billion; and its portfolio of roughly 50,000 whole loans to
Berkshire Hathaway for $1.5 billion.
Judge Martin Glenn in December 2013 confirmed the Joint Chapter 11
Plan co-proposed by Residential Capital and the Official Committee
of Unsecured Creditors.
SAMSON RESOURCES: Committee Cuts Plan Extension to 6 Months
-----------------------------------------------------------
Samson Resources Corporation and its affiliated debtors filed a
motion asking the U.S. Bankruptcy Court for the District of
Delaware for a nine-month extension of their exclusive periods to
file a Chapter 11 plan and solicit acceptances thereof through Oct.
14, 2016 and Dec. 14, 2016, respectively.
The Debtors believe that maintaining the exclusive right to file
and solicit votes on a plan of reorganization is critical to
achieving a value-maximizing outcome in the most efficient and
expeditious manner. The Debtors contend that extending the
exclusivity periods will afford them and their stakeholders time to
continue discussions to evaluate available restructuring
alternatives, crystallize the path forward, and obtain approval of
a value-maximizing transaction.
The Official Committee of Unsecured Creditors believes that the
extension sought by the Debtors is too long under the circumstances
and that the Court and the parties in interest would benefit from
an earlier checkpoint regarding the progress being made towards a
workable plan.
The Committee relates that it has proposed, and the Debtors have
agreed, to limit the extension of the Exclusive Periods to six
months, subject to the Debtors' right to seek further extensions
and the Committee’s right to seek to shorten or terminate the
Exclusive Periods based on subsequent developments. The Committee
contends that absent a reversal of current market trends, it is
unlikely that the value of the Debtors' business will increase over
time. The Committee further contends that it is essential that the
Debtors work with the Committee and their other stakeholders in a
collaborative and transparent fashion to formulate a workable
plan.
Samson Resources Corporation is represented by:
Domenic E. Pacitti, Esq.
Michael W. Yurkewicz, Esq.
KLEHR HARRISON HARVEY BRANZBURG LLP
919 N. Market Street, Suite 1000
Wilmington, DE 19801
Telephone: (302)426-1189
Facsimile: (302) 426-9193
E-mail: dpacitti@klehr.com
myurkewicz@klehr.com
- and -
Morton Branzburg, Esq.
KLEHR HARRISON HARVEY BRANZBURG LLP
1835 Market Street, Suite 1400
Philadelphia, PA 19103
Telephone: (215)569-2700
Facsimile: (215)568-6603
E-mail: mbranzburg@klehr.com
- and -
Paul M. Basta, Esq.
Edward O. Sassower, Esq.
Joshua A. Sussberg, Esq.
Ryan J. Dattilo, Esq.
KIRKLAND & ELLIS LLP
601 Lexington Avenue
New York, NY 10022
Telephone: (212)446-4800
Facsimile: (212)446-4900
E-mail: paul.basta@kirkland.com
edward.sassower@kirkland.com
joshua.sussberg@kirkland.com
ryan.dattilo@kirkland.com
- and -
James H.M. Sprayregen, Esq.
Ross M. Kwasteniet, Esq.
Brad Weiland, Esq.
KIRKLAND & ELLIS LLP
300 North LaSalle
Chicago, IL 60654
Telephone: (312)862-2000
Facsimile: (312)862-2200
E-mail: james.sprayregen@kirkland.com
ross.kwasteniet@kirkland.com
brad.weiland@kirkland.com
The Official Committee of Unsecured Creditors is represented by:
Joseph J. Farnan, Jr., Esq.
Joseph J. Farnan, III, Esq.
Michael J. Farnan, Esq.
FARNAN LLP
919 North Market St., 12th Floor
Wilmington, DE 19801
Telephone: (302)777-0300
Facsimile: (302)777-0301
E-mail: farnan@farnanlaw.com
jjfarnan@farnanlaw.com
mfarnan@farnanlaw.com
- and -
Thomas E. Lauria, Esq.
WHITE & CASE LLP
Southeast Financial Center, Suite 4900
200 South Biscayne Blvd.
Miami, FL 33131
Telephone: (305) 371-2700
Facsimile: (305) 358-5744
Email: tlauria@whitecase.com
- and -
Glenn M. Kurtz, Esq.
J. Christopher Shore, Esq.
Michele J. Meises, Esq.
Thomas MacWright, Esq.
WHITE & CASE LLP
1155 Avenue of the Americas
New York, NY 10036
Telephone: (212)819-8200
Facsimile: (212)354-8113
E-mail: gkurtz@whitecase.com
cshore@whitecase.com
michele.meises@whitecase.com
tmacwright@whitecase.com
About Samson Resources Corporation
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.
SAMSON RESOURCES: U.S. Trustee Seeks Appointment of Ch. 11 Examiner
-------------------------------------------------------------------
Andy R. Vara, the Acting U.S. Trustee for Region 3, asks the U.S.
Bankruptcy Court for the District of Delaware to direct the
appointment of an examiner in the Chapter 11 cases of Samson
Resources Corporation, et al., for the limited scope of:
i. examining and reporting on the Debtors' investigation on the
theft of approximately $1.8 million of estate funds using one or
more communications between the email account of the Debtors' CFO
and another employee of the Debtors; and
ii. examining allegations made by landowners that the Debtors
fraudulently miscalculated payments on account of royalty interests
prior to the commencement of the bankruptcy cases.
As reported by the Troubled Company Reporter on Jan. 4, 2016,
BankruptcyData reported that the official committee of unsecured
creditors objected to the motion of the U.S. Trustee.
The committee asserted, "Although the Committee is concerned about
the theft of approximately $1.78 million of the Debtors' funds and
allegations that the Debtors have been miscalculating royalty
interest payments, it submits that the appointment of an examiner
is not necessary to address such concerns, at least at this time,
and would result in needless costs to the Debtors' estates. Given
that the Debtors have repeatedly indicated that the value of their
businesses is eroding, these Chapter 11 Cases must be managed in a
cost-efficient manner so as to preserve value for the Debtors'
estates and creditors.
"The costs and expenses of appointing an examiner for the purposes
requested in the Motion is disproportionately high as compared to
any benefit that would inure to the Debtors' estates, particularly
since the Committee -- which is authorized to investigate such
matters under 11 U.S.C. section 1103(c)(2) -- can undertake any
supplemental investigation more efficiently," the Committee further
objected.
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.
SAN BERNARDINO, CA: Free to Outsource Firefighting Services, Court
------------------------------------------------------------------
Stephanie Cumings, writing for Bloomberg Brief - Distress &
Bankruptcy, reported that San Bernardino's firefighters lost
another battle in the city's "ongoing bankruptcy saga" when a
federal judge held that the city's charter doesn't ban the
outsourcing of firefighting services to a private company.
According to the report, Judge Otis D. Wright, II, found that just
because some sections of the charter "presuppose the existence of
an internal fire department does not mean they require the creation
of an internal fire department." The court found that a city
attorney opinion which said that outsourcing was prohibited was of
"little worth," noting that interpreting a charter like this is the
"bread and butter of the judicial branch," the report related.
The court said that a charter city's power derives from the
constitution, and therefore "the lack of a statute authorizing a
city to outsource firefighting services to private entities is not
a restriction on a charter city's ability to do so," the report
further related. As to the charter, the court said that "[n]othing
in the [c]harter expressly states that firefighting services cannot
be outsourced," the report said.
About San Bernardino
San Bernardino, California, filed an emergency petition for
municipal bankruptcy under Chapter 9 of the U.S. Bankruptcy Code
(Bankr. C.D. Cal. Case No. 12-28006) on Aug. 1, 2012. San
Bernardino, a city of about 210,000 residents roughly 65 miles
(104
km) east of Los Angeles, estimated assets and debt of more than $1
billion in the bare-bones bankruptcy petition.
The city council voted on July 10, 2012, to file for bankruptcy.
The move lets San Bernardino bypass state-required mediation with
creditors and proceed directly to U.S. Bankruptcy Court.
The city is represented that Paul R. Glassman, Esq., at Stradling
Yocca Carlson & Rauth.
San Bernardino joined two other California cities in bankruptcy:
Stockton, an agricultural center of 292,000 east of San Francisco,
and Mammoth Lakes, a mountain resort town of 8,200 south of
Yosemite National Park.
The City was granted Chapter 9 protection on Aug. 28, 2013.
The City filed on May 14, 2015, a Plan to exit court protection.
The Plan proposes to some bondholders a penny on the dollar but
maintains pension benefits for retired city workers. The Plan
proposes to make full payments into the pension fund run by
California Public Employees' Retirement System.
SPOTLIGHT INNOVATION: Has Going Concern Doubt Amid Losses
---------------------------------------------------------
Spotlight Innovation Inc.'s net loss was $2,204,989 for the three
months ended September 30, 2015, compared to a net loss of $766,613
for the three months ended September 30, 2014. The increase was
due to increased expenses, according to Cristopher Grunewald,
president/chief executive officer and director, and William Pim,
chief financial officer of the company said in a regulatory filing
with the U.S. Securities and Exchange Commission on November 17,
2015.
Furthermore, the company had $541,012 in cash as of September 30,
2015. The company has negative working capital of $4.91 million
and total stockholders' equity of $2.0 million as of September 30,
2015.
"For the nine months ended September 30, 2015, the company has
experienced recurring losses from operations and may not have
enough cash and working capital to fund its operations beyond the
very near term, which raises substantial doubt about our ability to
continue as a going concern," Messrs. Grunewald and Pim told the
SEC.
"Management has made a similar note in the financial statements.
The company anticipates it will need approximately $2,950,000 for
the next twelve months to fund operations. We may be required to
seek additional capital by selling debt or equity securities,
selling assets, or otherwise be required to bring cash flows in
balance when we approach a condition of cash insufficiency. The
sale of additional equity or debt securities, if accomplished, may
result in dilution to our then shareholders. We provide no
assurance that financing will be available in amounts or on terms
acceptable to us, or at all."
At September 30, 2015, the company had total assets of $7,836,451,
total liabilities of $5,836,619 and total equity of $1,999,832.
A full-text copy of the company's quarterly report is available for
free at: http://tinyurl.com/zppghq6
Spotlight Innovation Inc. provides solutions to healthcare-focused
companies commercializing healthcare intellectual property. The
company is headquartered in West Des Moines, Iowa.
STEVIA FIRST: Past and Future Losses Raise Going Concern Doubt
--------------------------------------------------------------
Stevia First Corp. has incurred losses and anticipates further
losses, raising substantial doubt about its ability to continue as
a going concern, Robert Brooke, chief executive officer of the
company, said in a regulatory filing with the U.S. Securities and
Exchange Commission on Nov. 16, 2015.
Mr. Brooke related, "The company has incurred losses and utilized
cash in operations since inception resulting in stockholders'
deficit of $231,388 as of September 30, 2015, and further losses
are anticipated in the development of its business.
"These factors raise substantial doubt about the Company's ability
to continue as a going concern.
"As a result, the company's independent registered public
accounting firm, in their report on the company's March 31, 2015
audited financial statements, raised substantial doubt about the
company's ability to continue as a going concern."
According to Mr. Brooke: "The ability to continue as a going
concern is dependent on the company attaining and maintaining
profitable operations in the future and/or raising additional
capital to meet its obligations and repay its liabilities arising
from normal business operations when they come due. We estimate
that we will have sufficient funds to operate the business for the
6 months after September 30, 2015.
"We will require additional financing to fund our planned long-term
operations, including our commitment under our distribution and
license agreements with Qualipride International. These estimates
could differ if we encounter unanticipated difficulties, in which
case our current funds may not be sufficient to operate our
business for that period. In addition, our estimates of the amount
of cash necessary to operate our business may prove to be wrong,
and we could spend our available financial resources much faster
than we currently expect.
"We do not have any firm commitments for future capital.
Significant additional financing will be required to fund our
planned principal operations in the near term and in future
periods, including research and development activities relating to
stevia extract production, developing and seeking regulatory
approval for any of our stevia product candidates, commercializing
any product candidate for which we are able to obtain regulatory
approval or certification, seeking to license or acquire new assets
or businesses, and maintaining our intellectual property rights and
pursuing rights to new technologies. We do not presently have, nor
do we expect in the near future to have, sufficient or consistent
revenue to fund our business from our operations, and will need to
obtain significant funding from external sources. Since inception,
we have funded our operations primarily through equity and debt
financings, and we expect to continue to rely on these sources of
capital in the future.
"However, if we raise additional funds by issuing equity or
convertible debt securities, our existing stockholders' ownership
will be diluted, and obtaining commercial loans would increase our
liabilities and future cash commitments. If we pursue capital
through alternative sources, such as collaborations or other
similar arrangements, we may be forced to relinquish rights to our
proprietary technology or other intellectual property that could
result in our receipt of only a portion of any revenue that may be
generated from a partnered product or business. Further, these or
other sources of capital may not be available on commercially
reasonable or acceptable terms when needed, or at all. If we
cannot raise the money that we need in order to continue to operate
and develop our business, we will be forced to delay, scale back or
eliminate some or all of our operations. If any of these were to
occur, there is a substantial risk that our business would fail and
our stockholders could lose all of their investment."
At September 30, 2015, the company had total assets of $747,538,
total liabilities of $978,926 and total stockholders' deficit of
$231,388.
The company reported a net income of $504,326 for the three months
ended September 30, 2015, compared to a net loss of $1,407,749 for
the quarter ended September 30, 2014.
A full-text copy of the company's quarterly report is available for
free at: http://tinyurl.com/gsllb4w
Stevia First Corp. is a Yuba City, California-based agricultural
biotechnology company that is focused on research and development
of new products and technologies, but is currently seeking to
commercialize stevia products, research products and other food and
nutritional products that are related to metabolic health.
SWIFT ENERGY: Moody's Lowers PDR to 'D-PD' on Bankruptcy Filing
---------------------------------------------------------------
Moody's Investors Service downgraded Swift Energy Company's
Probability of Default Rating (PDR) to D-PD from Ca-PD and affirmed
its other ratings following the company's announcement that it had
filed a voluntary petition for relief under Chapter 11 of the
United States Bankruptcy Code in the U.S. Bankruptcy Court for the
District of Delaware on Dec. 31, 2015. Moody's will withdraw all
ratings for the company in the near future.
Downgrades:
Issuer: Swift Energy Company
Probability of Default Rating, Downgraded to D-PD from Ca-PD, to
be withdrawn in the near future
Ratings and outlook affirmed and to be withdrawn in the near
future:
Issuer: Swift Energy Company
Corporate Family Rating, at Caa3
Senior Unsecured notes, at Ca (LGD 4)
Outlook, Negative
Rating unchanged and to be withdrawn in the near future:
Speculative Grade Liquidity Rating, at SGL-4
RATINGS RATIONALE
A bankruptcy filing by Swift has resulted in its PDR being
downgraded to D-PD. The company's other ratings have been affirmed
since the rating actions taken on December 4, 2015 already
incorporated Moody's view on the potential recoveries for Swift's
unsecured notes. Shortly following this rating action, Moody's
will withdraw Swift's ratings.
The principal methodology used in these ratings was Global
Independent Exploration and Production Industry published in
December 2011.
Swift Energy Company is an independent exploration and production
company headquartered in Houston, Texas.
SWIFT ENERGY: Seeks Approval of $75 Million DIP Financing
---------------------------------------------------------
Swift Energy Company is asking the Bankruptcy Court to approve a
non-amortizing multi-draw term loan credit facility in an aggregate
principal amount not to exceed $75,000,000, with Cantor Fitzgerald
Securities serving as agent for the lenders. The Debtors intend to
use up to $15 million of the proceeds of the DIP Facility
immediately upon the entry of the Interim DIP Order.
According to the Debtors, the proposed postpetition financing will,
among other things, provide capital necessary to allow them to
continue operating without material disruption to their businesses
during the Chapter 11 cases, all in an effort to maximize the value
of their estates for the benefit of creditors by reorganizing as a
going concern.
The DIP Facility has the following milestones:
* On the Petition Date, the Debtors shall each have filed with
the Bankruptcy Court (i) a plan of reorganization reasonably
acceptable in form and substance to the Administrative Agent
and the Backstop Lenders and (ii) a related disclosure
statement reasonably acceptable in form and substance to the
Administrative Agent and the Backstop Lenders;
* On or before Jan. 6, 2016, the Bankruptcy Court shall have
entered the the Interim Order;
* On or before Feb. 1, 2016, the Bankruptcy Court shall have
entered the Final Order;
* On or before Feb. 15, 2016, the Bankruptcy Court shall have
entered an order approving the adequacy of the Disclosure
Statement reasonably acceptable in form and substance to the
Administrative Agent and the Backstop Lenders;
* On or before March 30, 2016, the Bankruptcy Court shall have
entered an order confirming the Approved Plan reasonably
acceptable in form and substance to the Administrative Agent
and the Backstop Lenders; and
* On or before April 19, 2016, the Approved Plan shall become
effective.
To compensate the Lenders for making funds available under the DIP
Credit Agreement, the Borrower will pay to the Administrative Agent
for the account of the Lenders in proportion to their respective
Percentage Share as of the relevant Payment Date, a commitment fee
on the Commitment Amount then in effect, as follows:
(a) 3% fee on the Closing Date (Commitment Amount of $15
million)
(b) 3% fee on the Final Order Funding Availability Date
(Commitment Amount of $15 million)
(c) 3% fee on the Third Borrowing Funding Availability Date
(Commitment Amount of $45 million)
In addition, the Debtors also seek permission to use cash
collateral.
"The Debtors are in the process of completing or reworking certain
of their wells, which is essential to the Debtors' continued
production and cashflow. Without the liquidity provided by the DIP
Facility and access to Cash Collateral, the Debtors may not be able
to continue to fulfill these critical operational needs. In
addition, without the DIP Facility and the use of Cash Collateral,
the Debtors would likely be unable to satisfy their payroll
obligations, which would threaten the stability of the Debtors'
workforce and result in significant disruptions to the operation,
if not the permanent cessation, of the Debtors' business," says
Zachary I. Shapiro, Esq., Richards, Layton & Finger, P.A., counsel
for the Debtors.
About Swift Energy
Headquartered in Houston, Texas, Swift Energy Company is an
independent energy company engaged in the exploration, development,
production and acquisition of oil and natural gas properties. Its
primary assets and operations are focused in the Eagle Ford trend
of South Texas and the onshore and inland waters of Louisiana.
Swift Energy Company and eight of its affiliates filed Chapter 11
bankruptcy petitions (Bankr. D. Del. Case Nos. 15-12669 to
15-12677) on Dec. 31, 2015. The petitions were signed by Alton D.
Heckaman, Jr., the executive vice president and CFO. Judge Mary F.
Walrath has been assigned the cases.
The Debtors disclosed total assets of $1.02 billion and total debt
of $1.34 billion as of Sept. 30, 2015.
The Debtors engaged Jones Day as general counsel; Richards, Layton
& Finger, P.A., as local counsel; Lazard Freres & Co, LLC as
investment banker; Alvarez & Marsal North America LLC as financial
advisor; and Kurtzman Carson Consultants LLC as claims and noticing
agent.
UNIVERSITY GENERAL: Foundation Healthcare Completes Asset Purchase
------------------------------------------------------------------
Foundation HealthCare, Inc., which is an owner and operator of
surgical hospitals, on Jan. 4 disclosed that it completed the
previously announced acquisition of substantially all of the assets
of University General Hospital (UGH) in a transaction which closed
December 31, 2015. UGH is a sixty-nine bed hospital located in the
Medical City area of Houston, Texas. The Hospital filed for
protection under Chapter 11 of the U.S. Bankruptcy Code in February
2015. Foundation purchased UGH for $33.0 million in the Court
approved sale.
"UGH will be immediately rebranded as Foundation Surgical Hospital
of Houston," stated Foundation CEO, Stanton Nelson.
"It will be the largest of our three Texas hospitals and is a great
addition to the Foundation hospital system. Our executive team has
over 20 years of experience working with the physicians in the
Houston market. We look forward to working with our many physician
friends as we execute our proven growth strategy at this hospital,"
added Mr. Nelson.
"Foundation has reported $124.8 million in net revenues for the
twelve months ended September 30, 2015. In documents filed with
the Bankruptcy Court, UGH reported net revenues in excess of $70
million for 2014. We have already initiated growth initiatives and
cost reduction programs at UGH and we expect the transaction to be
immediately accretive to our shareholders," said Mr. Nelson.
Funding for the transaction was provided by a consortium of banks
led by Texas Capital Bank and equipment financing was provided by
First Financial Corporate Leasing, LLC.
About University General
University General Health System, Inc., with headquarters in
Houston, Texas, is a multi-specialty health care provider that
delivers concierge physician- and patient-oriented services. UGHS
and its consolidated subsidiaries operate, amongst others, a
general acute care hospital, ambulatory surgical centers,
hyperbaric wound care centers, diagnostic imaging centers, physical
therapy centers, and senior living centers.
UGHS owns the University General Hospital, a 72-bed, general acute
care hospital in the heart of the Texas Medical Center in Houston,
Texas.
UGHS and its affiliated entities sought Chapter 11 protection
(Bankr. S.D. Tex. Lead Case No. 15-31086) in Houston, Texas, on
Feb. 27, 2015. The case is assigned to Judge Letitia Z. Paul.
The Debtors have tapped John F Higgins, IV, Esq., Aaron James
Power, Esq., and Joshua W. Wolfshohl, Esq., at Porter Hedges LLP,
in Houston, Texas, as counsel. Upshot Services, LLC, is the
claims
and noticing agent.
U.S. Trustee Judy A. Robbins formed a nine-member panel of
unsecured creditors in the Chapter 11 cases of the Debtors.
WALTER ENERGY: Can Scrap Union Obligations, Judge Rules
-------------------------------------------------------
Dawn McCarty, writing for Bloomberg Brief - Distress & Bankruptcy,
reported that a judge ruled that Walter Energy Inc. can scrap its
union obligations in order to facilitate a sale, a move that will
affect multi-employer funds covering health and retirement benefits
for thousands of former miners but hopefully allow the company to
keep operating.
According to the report, in an opinion filed Dec. 28, U.S.
Bankruptcy Judge Tamara O. Mitchell in Birmingham, Alabama, found
that the company's assets can be sold without the liabilities
associated with union benefits. In doing so, she overruled
objections by funds that are responsible for paying retiree and
health benefits to former miners from Walter and other companies,
the report related.
"This court finds that maintaining the coal operations as a going
concern, keeping the mines open, offering future job opportunities
and continuing to be a productive member of the business community
all require this Court to overrule" the objections, Judge Mitchell
wrote, the report cited. She said that she assumed an offer to buy
the company wouldn't go forward without such a ruling, the report
further related.
As previously reported by The Troubled Company Reporter, citing Dow
Jones' Daily Bankruptcy Review, reported that the Pension Benefit
Guaranty Corp., a government pension safety net, will take
responsibility for the pensions of more than 2,700 current and
future retirees that will be left behind in connection with the
sale of Walter Energy. The PBGC said on Dec. 30, 2015, that it
will take over the underfunded plan, which is set to end on Dec.
31, 2015, and cover the $96 million shortfall between the plan's
assets and the benefits owed to pensioners.
About Walter Energy
Walter Energy -- http://www.walterenergy.com/-- is a publicly
traded "pure-play" metallurgical coal producer for the global
steel
iindustry with strategic access to steel producers in Europe, Asia
and South America. The Company also produces thermal coal,
anthracite, metallurgical coke and coal bed methane gas. Walter
Energy employs approximately 2,700 employees, with operations in
the United States, Canada and the United Kingdom.
For the year ended Dec. 31, 2014, the Company reported a net loss
of $471 million following a net loss of $359 million in 2013.
Walter Energy, Inc., and its affiliates sought Chapter 11
protection (Bankr. N.D. Ala. Lead Case No. 15-02741) in
Birmingham,
Alabama on July 15, 2015, after signing a restructuring support
agreement with first-lien lenders.
Walter Energy disclosed total assets of $5.2 billion and total
debt
of $5 billion as of March 31, 2015.
The Debtors tapped Paul, Weiss, Rifkind, Wharton & Garrison as
counsel; Bradley Arant Boult Cummings LLP, as co-counsel; Ogletree
Deakins LLP, as labor and employment counsel; Maynard, Cooper &
Gale, P.C., as special counsel; Blackstone Advisory Services,
L.P.,
as investment banker; AlixPartners, LLP, as financial advisor, and
Kurtzman Carson Consultants LLC, as claims and noticing agent.
The Bankruptcy Administrator for the Northern District of Alabama
appointed an Official Committee of Unsecured Creditors and an
Official Committee of Retirees. The Creditors Committee tapped
Morrison & Foerster LLP and Christian & Small LLP as attorneys.
The Retiree Committee retained Adams & Reese LLP and Jenner &
Block
LLP as attorneys.
The informal group of certain unaffiliated First Lien Lenders and
First Lien Noteholders (the "Steering Committee") retained Akin,
Gump, Strauss, Hauer and Feld LLP as legal advisor, and Lazard
Freres & Co. LLC as financial advisor.
WALTER ENERGY: Dominion Provides Update on Bankruptcy Proceedings
-----------------------------------------------------------------
As previously announced, Southwest Bank, the trustee of the
Dominion Resources Black Warrior Trust was informed by Walter
Energy, Inc., the parent of Walter Black Warrior Basin LLC (the
"Company"), that it, together with certain of its subsidiaries and
affiliates, including the Company ("Debtors") filed a petition for
relief under Chapter 11 of the U.S. Bankruptcy Code (the
"Bankruptcy Code") with the United States District Court for the
Northern District of Alabama Southern Division (the "Bankruptcy
Court") on July 15, 2015 and that it has an agreement with lenders
regarding a pre-negotiated restructuring plan. There have been
several rulings related to the bankruptcy proceedings as disclosed
by the Trust in Current Reports on Form 8-K filed with the
Securities and Exchange Commission on each of August 19, 2015,
September 16, 2015 and November 20, 2015.
On Oct. 2, 2015, the Debtors filed a motion to reject certain
"executory contracts" between the Debtors and the Trust. The
Debtors sought to reject three agreements: (i) the overriding
royalty conveyance recorded in Deed Book 1181 and Page 644 on June
30, 1994 in Tuscaloosa County, Alabama, (ii) the Trust Agreement
and (iii) the Administrative Services Agreement (collectively, the
"Dominion Agreements"). In the Bankruptcy Court's order dated
December 28, 2015, the Bankruptcy Court cited that agreements may
be rejected under section 365 of the Bankruptcy Code if they are
"executory." The Bankruptcy Court stated that the Dominion
Agreements are executory contracts and ruled that the Dominion
Agreements are rejected under section 365 of the Bankruptcy Code.
The Trustee continues to evaluate legal options with respect to the
Trust.
About Walter Energy
Walter Energy -- http://www.walterenergy.com/-- is a publicly
traded "pure-play" metallurgical coal producer for the global steel
industry with strategic access to steel producers in Europe, Asia
and South America. The Company also produces thermal coal,
anthracite, metallurgical coke and coal bed methane gas. Walter
Energy employs approximately 2,700 employees, with operations in
the United States, Canada and the United Kingdom.
For the year ended Dec. 31, 2014, the Company reported a net loss
of $471 million following a net loss of $359 million in 2013.
Walter Energy, Inc., and its affiliates sought Chapter 11
protection (Bankr. N.D. Ala. Lead Case No. 15-02741) in Birmingham,
Alabama on July 15, 2015, after signing a restructuring support
agreement with first-lien lenders.
Walter Energy disclosed total assets of $5.2 billion and total debt
of $5 billion as of March 31, 2015.
The Debtors tapped Paul, Weiss, Rifkind, Wharton & Garrison as
counsel; Bradley Arant Boult Cummings LLP, as co-counsel; Ogletree
Deakins LLP, as labor and employment counsel; Maynard, Cooper &
Gale, P.C., as special counsel; Blackstone Advisory Services, L.P.,
as investment banker; AlixPartners, LLP, as financial advisor, and
Kurtzman Carson Consultants LLC, as claims and noticing agent.
The Bankruptcy Administrator for the Northern District of Alabama
appointed an Official Committee of Unsecured Creditors and an
Official Committee of Retirees. The Creditors Committee tapped
Morrison & Foerster LLP and Christian & Small LLP as attorneys.
The Retiree Committee retained Adams & Reese LLP and Jenner & Block
LLP as attorneys.
The informal group of certain unaffiliated First Lien Lenders and
First Lien Noteholders (the "Steering Committee") retained Akin,
Gump, Strauss, Hauer and Feld LLP as legal advisor, and Lazard
Freres & Co. LLC as financial advisor.
WALTER ENERGY: Dominion Resources Terminates Trust Agreement
------------------------------------------------------------
As previously announced, Southwest Bank, the trustee of the
Dominion Resources Black Warrior Trust, was informed by Walter
Energy, Inc., the parent of Walter Black Warrior Basin LLC, that
it, together with certain of its subsidiaries and affiliates,
including the Company filed a petition for relief under Chapter 11
of the U.S. Bankruptcy Code with the United States District Court
for the Northern District of Alabama Southern Division on July 15,
2015 and that it has an agreement with lenders regarding a
pre-negotiated restructuring plan. There have been several rulings
related to the bankruptcy proceedings as disclosed by the Trust in
Current Reports on Form 8-K filed with the Securities and Exchange
Commission on each of August 19, 2015, September 16, 2015, November
20, 2015 and December 31, 2015.
As stated in the Trust's Quarterly Report on Form 10-Q filed by the
Trust on November 23, 2015, pursuant to Section 9.02(b) of the
Trust Agreement of the Trust, the Trust shall terminate on its
terms as a result of the failure to maintain a 1.2 to 1.0 ratio for
two consecutive calendar quarters of (i) cash received pursuant to
the Royalty Interests of the Trust (as defined hereafter) to (ii)
administrative costs. The "Royalty Interests" are certain
overriding royalty interests in the proved natural gas properties
located in the Pottsville coal formation of the Black Warrior
Basin, Tuscaloosa County, Alabama. Walter Energy, Inc. did not pay
either (i) the distribution to the Trust that would have typically
been paid in August 2015 and normally would have included payments
for the Royalty Interests sold during the production months of
April, May and June 2015 or (ii) the distribution to the Trust that
would have typically been paid in December 2015 and normally would
have included payments for the Royalty Interests sold during the
production months July, August and September 2015. As a result of
these nonpayments, the Trust has not maintained a 1.2 to 1.0 ratio
for two consecutive calendar quarters. Therefore, pursuant to
Section 9.02(b) of the Trust Agreement, the Trust must terminate.
Correspondence and conferences with the Debtors have indicated that
any further distributions to the Trust would also not be made. As
a result of the termination, the Trust anticipates that the New
York Stock Exchange will initiate an immediate suspension of
trading of the Trust's units and will initiate a delisting process
from the NYSE.
While the Trustee continues to evaluate legal options with respect
to the Trust, it intends to proceed with winding up the affairs of
the Trust.
About Walter Energy
Walter Energy -- http://www.walterenergy.com/-- is a publicly
traded "pure-play" metallurgical coal producer for the global steel
industry with strategic access to steel producers in Europe, Asia
and South America. The Company also produces thermal coal,
anthracite, metallurgical coke and coal bed methane gas. Walter
Energy employs approximately 2,700 employees, with operations in
the United States, Canada and the United Kingdom.
For the year ended Dec. 31, 2014, the Company reported a net loss
of $471 million following a net loss of $359 million in 2013.
Walter Energy, Inc., and its affiliates sought Chapter 11
protection (Bankr. N.D. Ala. Lead Case No. 15-02741) in Birmingham,
Alabama on July 15, 2015, after signing a restructuring support
agreement with first-lien lenders.
Walter Energy disclosed total assets of $5.2 billion and total debt
of $5 billion as of March 31, 2015.
The Debtors tapped Paul, Weiss, Rifkind, Wharton & Garrison as
counsel; Bradley Arant Boult Cummings LLP, as co-counsel; Ogletree
Deakins LLP, as labor and employment counsel; Maynard, Cooper &
Gale, P.C., as special counsel; Blackstone Advisory Services, L.P.,
as investment banker; AlixPartners, LLP, as financial advisor, and
Kurtzman Carson Consultants LLC, as claims and noticing agent.
The Bankruptcy Administrator for the Northern District of Alabama
appointed an Official Committee of Unsecured Creditors and an
Official Committee of Retirees. The Creditors Committee tapped
Morrison & Foerster LLP and Christian & Small LLP as attorneys.
The Retiree Committee retained Adams & Reese LLP and Jenner & Block
LLP as attorneys.
The informal group of certain unaffiliated First Lien Lenders and
First Lien Noteholders (the "Steering Committee") retained Akin,
Gump, Strauss, Hauer and Feld LLP as legal advisor, and Lazard
Freres & Co. LLC as financial advisor.
WASCO INC: ERISA Violation Puts Crimp on Bankruptcy Plan
--------------------------------------------------------
Carmen Castro-Pagan, writing for Bloomberg Brief - Distress &
Bankruptcy, reported that a joint bankruptcy plan filed by a
Tennessee-based company and a subsidiary was wrongly confirmed by a
bankruptcy court since its principal purpose was to evade and avoid
withdrawal liability payment under the Employee Retirement Income
Security Act, the U.S. District Court for the Middle District of
Tennessee ruled.
According to the report, in his Dec. 23 opinion, Judge Todd J.
Campbell reversed the bankruptcy court's order confirming the
companies' Chapter 11 plan and denying dismissal of the bankruptcy
petition. The report related that Judge Campbell ruled that the
companies' filing for bankruptcy was in bad faith and that they
engaged in
a series of transactions -- insider financial dealings and the
bankruptcy filing itself -- with the principal purpose of avoiding
and evading their withdrawal liability in violation of ERISA.
The report related that masonry company Wasco Inc. and a wholly
owned subsidiary, Lovell's Masonry Inc., made contributions to an
ERISA pension fund pursuant to collective bargaining agreements,
CBAs, they had with the International Union of Bricklayers and
Allied Craftworkers and its Local No. 8 Southeast.
Headquartered in Nashville, Tennessee, WASCO, Inc., filed for
Chapter 11 bankruptcy protection (Bankr. M.D. Tenn. Case No.
15-00068) on Jan. 6, 2015, estimating assets between $1 million
and
$10 million and its liabilities between $10 million and $50
million. The petition was signed by William A. Sneed, Jr., chief
executive officer. Judge Keith M Lundin presides over the case.
David Phillip Canas, Esq., Craig Vernon Gabbert, Jr., Esq.,
Barbara
Dale Holmes, Esq., Tracy M Lujan, Esq., R. Alex Payne, Esq., and
Glenn Benton Rose, Esq., at Harwell Howard Hyne Gabbert & Manner
PC, serve as the Debtor's bankruptcy counsel.
ZOHAR CDO 2003-1: Patriarch Defends Bid to Tip Zohar to Bankruptcy
------------------------------------------------------------------
Tiffany Kary and Martin Z. Braun, writing for Bloomberg Brief -
Distress & Bankruptcy, reported that Lynn Tilton's Patriarch
Partners LLC fired back in its battle over whether it can put into
bankruptcy investment vehicles controlled by MBIA that are composed
of loans to distressed companies.
According to the report, Patriarch Partners XV LLC said Dec. 29 in
a court filing in New York that it should be allowed to put the
Zohar I fund into bankruptcy. The fund, the report related, is one
of three collateralized loan obligations, or CLOs, under the Zohar
name managed by Tilton. All are made up of loans to distressed
U.S. companies, including Dura Automotive Systems Inc. and Spiegel
Catalog Inc., the report further related.
Zohar, controlled by bond insurer MBIA, said that Patriarch's
effort to tip it into bankruptcy should be dismissed because it
could disrupt global structured finance
markets, the report noted. MBIA opposes Patriarch's petition to
put Zohar in bankruptcy, Greg Diamond, a spokesman for the insurer,
said in a statement, the report cited.
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.
*********
Monday's edition of the TCR delivers a list of indicative prices
for bond issues that reportedly trade well below par. Prices are
obtained by TCR editors from a variety of outside sources during
the prior week we think are reliable. Those sources may not,
however, be complete or accurate. The Monday Bond Pricing table
is compiled on the Friday prior to publication. Prices reported
are not intended to reflect actual trades. Prices for actual
trades are probably different. Our objective is to share
information, not make markets in publicly traded securities.
Nothing in the TCR constitutes an offer or solicitation to buy or
sell any security of any kind. It is likely that some entity
affiliated with a TCR editor holds some position in the issuers
public debt and equity securities about which we report.
Each Tuesday edition of the TCR contains a list of companies with
insolvent balance sheets whose shares trade higher than $3 per
share in public markets. At first glance, this list may look like
the definitive compilation of stocks that are ideal to sell short.
Don't be fooled. Assets, for example, reported at historical cost
net of depreciation may understate the true value of a firm's
assets. A company may establish reserves on its balance sheet for
liabilities that may never materialize. The prices at which
equity securities trade in public market are determined by more
than a balance sheet solvency test.
On Thursdays, the TCR delivers a list of recently filed
Chapter 11 cases involving less than $1,000,000 in assets and
liabilities delivered to nation's bankruptcy courts. The list
includes links to freely downloadable images of these small-dollar
petitions in Acrobat PDF format.
Each Friday's edition of the TCR includes a review about a book of
interest to troubled company professionals. All titles are
available at your local bookstore or through Amazon.com. Go to
http://www.bankrupt.com/books/to order any title today.
Monthly Operating Reports are summarized in every Saturday edition
of the TCR.
The Sunday TCR delivers securitization rating news from the week
then-ending.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter is a daily newsletter co-published
by Bankruptcy Creditors Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA.
Jhonas Dampog, Marites Claro, Joy Agravante, Rousel Elaine
Tumanda, Valerie Udtuhan, Howard C. Tolentino, Carmel Paderog,
Meriam Fernandez, Joel Anthony G. Lopez, Cecil R. Villacampa,
Sheryl Joy P. Olano, Psyche A. Castillon, Ivy B. Magdadaro, Carlo
Fernandez, Christopher G. Patalinghug, and Peter A. Chapman,
Editors.
Copyright 2016. 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 ***