/raid1/www/Hosts/bankrupt/TCR_Public/160118.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Monday, January 18, 2016, Vol. 20, No. 18
Headlines
ACHPRETVIA TAL CHAIM: Case Summary & 6 Top Unsecured Creditors
ACTIVECARE INC: Incurs $12.8 Million Net Loss in Fiscal 2015
ALROSE ALLEGRIA: Isaac Goldstein Approved as Tax Accountant
ALROSE ALLEGRIA: U.S. Government Defends Bid for Case Conversion
AMERICAN APPAREL: Said to Reject New Charney-Led Bid
AMERICAN AXLE: Estimates $3.9 Billion 2015 Sales
AMERICAN CAPITAL: S&P Revises Outlook to Dev. & Affirms BB Rating
AMERICAN RENAL: S&P Affirms 'B' CCR Over First Lien Add-on
AS SEEN ON TV: Settles Dispute with Former Employee for $30,000
ATNA RESOURCES: Bankruptcy Proceedings Raise Going Concern Doubt
BON-TON STORES: Reports 1.6% Store Decrease in Holiday Sales
BOREAL WATER: Issues $250,000 Secured Debentures
BRANDYWINE REALTY: Fitch Raises Issuer Default Rating From BB+
CALIFORNIA RESOURCES: S&P Lowers CCR to 'CCC+' on Higher Leverage
CARECORE NATIONAL: S&P Revises Outlook to Stable & Affirms 'B' CCR
CASPIAN SERVICES: Incurs $33.2 Million Net Loss in Fiscal 2015
CCM MERGER: Moody's Hikes Corporate Family Rating to B2
CODERE FINANCE: N.Y. Court Recognizes U.K. Restructuring Scheme
CONNEAUT LAKE PARK: Park Restoration Fights for Insurance Proceeds
CORUS ENTERTAINMENT: S&P Puts 'BB+' CCR on CreditWatch Negative
CTI BIOPHARMA: Appoints Matthew Perry as Director
CTI BIOPHARMA: Appoints Matthew Perry to Board of Directors
CTI BIOPHARMA: Mark Lampert Reports 15.9% Stake as of Jan. 11
DAVIS HEALTH: Moody's Affirms Caa3 Rating, Outlook Remains Stable
DAYBREAK OIL: Reports $862,000 Net Loss for Third Quarter
DOMARK INTERNATIONAL: Posts $722,000 Net Income for 2nd Quarter
E Z MAILING: Files for Chapter 11 Bankruptcy Amid Default
E Z MAILING: Hires Porzio Bromberg as Bankruptcy Counsel
E Z MAILING: Proposes to Pay Critical Vendor Claims
E Z MAILING: Seeks 21-Day Extension of Deadline to File Schedules
E Z MAILING: Seeks Joint Administration of Cases
E Z MAILING: Wants to Use PNC Bank's Cash Collateral
ESSAR STEEL: Court Issues Joint Administration Order
EVRAZ NORTH AMERICA: Moody's Cuts Corporate Family Rating to B3
EXGEN TEXAS: S&P Lowers Rating to 'B+', Outlook Stable
FINJAN HOLDINGS: Reports Nearly $5-Mil. 2015 Licensing Revenue
FOUR OAKS: Completes Refinancing of Subordinated Debt
FRANCHISE HOLDINGS: Raises Going Concern Doubt Amid Losses
FREEDOM COMMUNICATIONS: Amends Schedules of Assets and Liabilities
FREEDOM COMMUNICATIONS: Can Hire Glassratner as Financial Advisor
FREEDOM COMMUNICATIONS: Court Okays Lobel Weiland as Ch.11 Counsel
FTE NETWORKS: Incurs $3.63 Million Net Loss in Fiscal 2015
FUTURELAND CORP: Loss, Deficit Raise Going Concern Doubt
GLOBAL MARITIME: Creditors' Panel Taps CBIZ as Financial Advisor
GLOBAL MARITIME: Knowles of Dean Marine Advisors Tapped as CRO
GLOBALSTAR INC: Appoints David Kagan President and COO
HANCOCK FABRICS: Said to Prep for 2nd Bankruptcy Filing
HEALTHSPOT INC: Files for Chapter 7 Liquidation
INVENTIV HEALTH: To Present at J.P. Morgan Healthcare Conference
JAMES F. HUMPHREYS: Files for Chapter 11 Bankruptcy Protection
JOYCE LESLIE: Appoints Rust/Omni as Claims & Noticing Agent
JOYCE LESLIE: Files for Chapter 11; In Search of Buyer
LINCOLN PAPER: SSG Acted as Investment Banker on Asset Sale
LOCAL CORP: Has Retention Agreements with 40 Employees
MONESSEN, PA: Moody'sAffirms Ba1 General Obligation Rating
MOTORS LIQUIDATION: To Settle Term Loan Avoidance Actions for $75M
NYC CONSTRUCTORS: Voluntary Chapter 11 Case Summary
OFFSHORE GROUP: Receives Court Approval of Prepackaged Plan
OW BUNKER: Wants Bid to Convert Cases to Chapter 7 Denied
PRIMORSK INT'L: Case Summary & 30 Largest Unsecured Creditors
PROGRESS ENERGY: Moody's Cuts Preferred Shelf Rating to (P)Ba1
PROSPECT HOLDING: S&P Alters Outlook to Developing on Sale Plans
QUIKSILVER INC: Said to Seek Bankruptcy Exit Financing
RESPONSE BIOMEDICAL: CEO to Receive $350,000 Annual Salary
RESPONSE GENETICS: Conway MacKenzie's Matz Okayed as CRO
RESPONSE GENETICS: Taps GPK to Collect Accounts Receivable
SAGECREST II: Court Sustains Objection to Equal's Claim
SAN JOAQUIN HILLS: Moody's Affirms Ba2 Rating on Toll Revenue Bonds
SE OPPORTUNITY: Court Rejects Binder's Bid for Liquidated Damages
SEPCO CORPORATION: Case Summary & List of Asbestos PI Law Firms
SEQUENOM INC: Plans Sale of North Carolina Operation
SEVENTY SEVEN: S&P Cuts CCR to CCC- on Possible Debt Restructuring
SUNRISE REAL ESTATE: Incurs $717,000 Net Loss in Q1 2014
TIM HORTONS: Moody's Assigns 'B2' Rating to Unsecured Note Classes
TRADEWINDS AIRLINES: Court Denies Bid to Dismiss Ex-Counsel's Suit
TRISTAR WELLNESS: Files Voluntary Chapter 7 Petition
TRUMP ENTERTAINMENT: Icahn Wins Fight with Casino Union
VIGGLE INC: Sabby Healthcare No Longer a Shareholder
WARTBURG COLLEGE: Fitch Lowers Rating on $84.6MM Bonds to 'BB-'
WINDSOR FINANCIAL: Case Summary & 20 Largest Unsecured Creditors
WORLD IMPORTS: Hires Pastor & Golbois as Accountant
WPCS INTERNATIONAL: Deletes Director Removal Language in Bylaws
[*] Akerman Expands Bankruptcy & Reorganization Practice in Dallas
[^] BOND PRICING: For the Week from January 11 to 15, 2016
*********
ACHPRETVIA TAL CHAIM: Case Summary & 6 Top Unsecured Creditors
--------------------------------------------------------------
Debtor: Congregation Achpretvia Tal Chaim Sharhayu Shor, Inc.
508 Avenue M, 2nd Floor
Brooklyn, NY 11230
Case No.: 16-10092
Chapter 11 Petition Date: January 15, 2016
Court: United States Bankruptcy Court
Southern District of New York (Manhattan)
Judge: Hon. Michael E. Wiles
Debtor's Counsel: Arnold Mitchell Greene, Esq.
ROBINSON BROG LEINWAND GREENE
GENOVESE & GLUCK, P.C.
875 Third Avenue, 9th Floor
New York, NY 10022
Tel: (212) 603-6300
Fax: (212) 956-2164
Email: amg@robinsonbrog.com
Total Assets: $18 million
Total Liabilities: $472,502
The petition was signed by Harold Friedlander, vice president.
List of Debtor's Six Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
163 East 69 Realty, LLC $0
69th Street Capital LLC $250,000
152 West 57th Street
22nd Floor
New York, NY 10019
Church Mutual Insurance Company $609
Con Edison Jaf Station $273
Law Offices of Henry Kohn, Esq. $11,166
Sunrise Credit Services, Inc. $453
ACTIVECARE INC: Incurs $12.8 Million Net Loss in Fiscal 2015
------------------------------------------------------------
ActiveCare, Inc., filed with the Securities and Exchange Commission
its annual report on Form 10-K disclosing a net loss attributable
to common stockholders of $12.8 million on $6.59 million of chronic
illness monitoring revenues for the year ended Sept. 30, 2015,
compared with a net loss attributable to common stockholders of
$16.4 million on $6.10 million of chronic illness monitoring
revenues for the year ended Sept. 30, 2014.
As of Sept. 30, 2015, the Company had $2.53 million in total
assets, $11.1 million in total liabilities, and a $8.60 million
total stockholders' deficit.
Tanner LLC, in Salt Lake City, Utah, issued a "going concern"
qualification on the consolidated financial statements for the year
ended Sept. 30, 2015, citing that the Company has recurring losses,
negative cash flows from operating activities, negative working
capital, negative total equity, and certain debt that is in
default. These conditions, among others, raise substantial doubt
about its ability to continue as a going concern.
A full-text copy of the Form 10-Q is available for free at:
http://is.gd/vTHqFS
About ActiveCare
South West Valley City, Utah-based ActiveCare, Inc., is organized
into three business segments based primarily on the nature of the
Company's products. The Stains and Reagents segment is engaged in
the business of manufacturing and marketing medical diagnostic
stains, solutions and related equipment to hospitals and medical
testing labs. The CareServices segment is engaged in the business
of developing, distributing and marketing mobile health monitoring
and concierge services to distributors and customers. The Chronic
Illness Monitoring segment is primarily engaged in the monitoring
of diabetic patients on a real time basis.
The Company's business plan is to develop and market products for
monitoring the health of and providing assistance to mobile and
homebound seniors and the chronically ill, including those who may
require a personal assistant to check on them during the day to
ensure their safety and well being.
ALROSE ALLEGRIA: Isaac Goldstein Approved as Tax Accountant
-----------------------------------------------------------
The Hon. Sean H. Lane of the U.S. Bankruptcy Court for the Southern
District of New York, in an amended order, authorized Alrose
Allegria LLC, to employ Isaac Goldstein as tax accountant, nunc pro
tunc to Aug. 1, 2015.
Goldstein is expected to (i) prepare and file the Debtor's federal
and state tax returns; and (ii) provide tax advice with respect to
an ongoing New York State sales tax audit.
Goldstein will be compensated for his services and reimbursed for
any related expenses in accordance with applicable provisions of
the Bankruptcy Code, the Bankruptcy Rules and Local Bankruptcy
Rules and any other applicable orders or procedures of the Court.
To the best of the Debtor's knowledge, Goldstein is a
"disinterested person" as that term is defined in Section 101(14)
of the Bankruptcy Code.
About Alrose Allegria
Alrose Allegria LLC sought Chapter 11 protection (Bankr. S.D.N.Y.
Case No. 15-11760) in Manhattan on July 2, 2015, estimating $10
million to $50 million in assets and $1 million to $10 million in
debt. Allen Rosenberg, managing member of Alrose Allegria and
president of the Alrose Group, signed the bankruptcy petition.
The Debtor tapped Richard J. Bernard, Esq., at Foley & Lardner LLP,
in New York, as counsel.
According to the docket, the Debtor's Chapter 11 plan and
disclosure statement are due Oct. 30, 2015. The initial case
conference was set for Aug. 3, 2015.
In July 2011, another unit of the Alrose Group, Alrose King David
LLC filed for Chapter 11 bankruptcy protection (Bankr. E.D.N.Y.
Case No. 11-75361) in Brooklyn. Alrose King David LLC was a
special entity established by the Alrose Group to own the
143-room,
beachfront hotel property called the Allegria Hotel & Spa in Long
Beach, Long Island. Alrose King David won approval of its
reorganization plan in March 2012.
ALROSE ALLEGRIA: U.S. Government Defends Bid for Case Conversion
----------------------------------------------------------------
The United States of America, on behalf of the Internal Revenue
Service, submitted a reply in further support of its motion for an
order converting the Chapter 11 case of Alrose Allegria LLC, to one
under Chapter 7 of the Bankruuptcy Code.
According to the U.S. Government, the Debtor's argument against
conversion failed for several reasons:
1. there is no reasonable likelihood that the Debtor can confirm
a plan;
2. the grounds for conversion include "an act or omission of the
Debtor" that is, there is a "substantial or continuing loss to or
diminution of the estate and the absence of a reasonable likelihood
of rehabilitation;" and
3. the Debtor has advanced no "reasonable justification for the
act or omission."
In a separate statement, Stabilis Fund IV, LP, a party-in-interest,
said that while the Debtor is under serious mismanagementt,
Stabilis disagreed with the government's conclusion that conversion
of the case to Chapter 7 would be in the best interests of
creditors.
Stabilis noted that the closure of the hotel would result in the
loss of jobs for more than 60 employees and the liquidation would
not produce any distribution for creditors.
Stabilis related that appointing an operating trustee to take
control of the business would provide the only realistic
opportunity for the pending discussion with the creditors to bear
fruit.
William K. Harrington, the U.S. Trustee for Region 2, responded to
the motion, stating that it is apparent from both the IRS motion
and the Debtor's opposition, that the case cannot remain in Chapter
11. Although the IRS recommends conversion to Chapter 7, the
Debtor prefers an unconventional form of dismissal.
The U.S. Trustee said that since the Debtor offered no authority
for its proposal of a structured dismissal, the case must be
converted to Chapter 7.
The Debtor opposed to the conversion motion, noting that since
conversion to Chapter 7 will result in the closure of the hotel,
Stabilis and King David would no longer have any interest in
causing the funding of any settlement amounts to the taxing
authorities. In a dismissal, the possibility remains that a
resolution providing a meaningful return to the taxing authorities
may occur.
The Debtor has engaged in discussions with the major constituencies
in th case (IRS, DTF, DOL and Nassau), well as Stabilis, to try and
resolve the claims against the Debtor for both pre and postpetition
taxes, either through a postpetition loan or a settlement and
structured dismissal of the case. The
Debtor understands that Stabilis has approved additional funding,
which funding will be available to cure the Debtor's deficient
postpetition taxes and provide a significant return to the
IRS, DTF, Nassau and DOL on the prepetition tax claims. The
Debtor proposed a global settlement, including a lump sum payment
to each of the taxing authorities and cure of any postpetition tax
deficiencies, all to be funded by Stabilis.
The Debtor is represented by:
Richard J. Bernard, Esq.
Alissa M. Nann, Esq.
FOLEY & LARDNER LLP
90 Park Avenue
New York, NY 10016
Tel: (212) 682-7474
Fax: (212) 687-2329
E-mails: rbernard@foley.com
anann@foley.com
The U.S. Trustee is represented by:
Richard C. Morrissey, Esq.
U.S. Federal Office Bldg.
201 Varick Street, Room 1006
New York, New York 10014
Tel: (212) 510-0500
Fax: (212) 668-2255
The U.S. is represented by:
Preet Bharara, Esq.
Attorney for the United States of America
Samuel Dolinger, Esq.
Assistant U.S. Attorney
86 Chambers Street, 3rd Floor
New York, NY 10007
Tel: (212) 637-2677
Fax: (212) 637-2702
E-mail: samuel.dolinger@usdoj.gov
About Alrose Allegria
Alrose Allegria LLC sought Chapter 11 protection (Bankr. S.D.N.Y.,
Case No. 15-11760) in Manhattan on July 2, 2015, estimating $10
million to $50 million in assets and $1 million to $10 million in
debt. Allen Rosenberg, managing member of Alrose Allegria and
president of the Alrose Group, signed the bankruptcy petition. The
Debtor tapped Richard J. Bernard, Esq., at Foley & Lardner LLP, in
New York, as counsel.
According to the docket, the Debtor's Chapter 11 plan and
disclosure statement are due Oct. 30, 2015. The initial case
conference was set for Aug. 3, 2015.
In July 2011, another unit of the Alrose Group, Alrose King David
LLC filed for Chapter 11 bankruptcy protection (Bankr. E.D.N.Y.,
Case No. 11-75361) in Brooklyn. Alrose King David LLC was a
special entity established by the Alrose Group to own the 143-room,
beachfront hotel property called the Allegria Hotel & Spa in Long
Beach, Long Island. Alrose King David won approval of its
reorganization plan in March 2012.
AMERICAN APPAREL: Said to Reject New Charney-Led Bid
----------------------------------------------------
Steven Church and Matt Townsend, writing for Bloomberg Brief -
Distress & Bankruptcy, reported that American Apparel's board of
directors rejected the latest takeover offer involving company
founder and fired chief executive officer Dov Charney, two people
familiar with the decision said.
According to the report, the vote means an offer valued at $300
million from three investment funds who've aligned with Charney
must be further sweetened to win over the company, or they must
convince a judge to throw out a competing proposal backed by
American Apparel's lenders. The company is open to a revised offer
from the funds, one of the people said, the Bloomberg report
cited.
As previously reported by The Troubled Company Reporter, an
investor group comprised of Hagan Capital Group and Silver Creek
Capital Partners announced on Jan. 11 that they have submitted a
$300 million offer to acquire American Apparel, Inc.
According to a press statement:
-- the Offer, which values American Apparel at $300 million,
is superior to the debtor's plan of reorganization and is
a win-win solution for the Company and all of its
stakeholders
-- the Debtor's plan is not feasible and will lead to poor
long-term recoveries for the Company's stakeholders and
put thousands of manufacturing jobs in Los Angeles at
risk
-- The acquisition proposal has the support of the Company's
founder, Dov Charney, whose leadership and vision is
central to American Apparel's long-term viability.
The terms of the proposal includes:
-- An investment from the Investor Group of $130 million,
including $90 million of new equity and $40 million of
a new term loan.
-- American Apparel would exit bankruptcy with approximately
$160 million of liquidity and new equity, including cash,
a new $50 million undrawn revolving credit facility, and
$90 million of equity cushion at closing, versus
approximately $75 million under the debtor's plan of
reorganization.
-- The total enterprise value of the proposed transaction is
$300 million, an attractive valuation to the debtor and
above the valuation range of $180 to $270 million
publicly stated by the debtor in its disclosure
statement. The Investor Group's offer is an upward
revision to a prior proposal submitted by the Investor
Group to the Company in December 2015.
-- The Company's pre-petition senior lenders will receive
a recovery of over 100% versus 33% to 77% under the
debtor's plan, assuming the low and high values of the
debtor's valuation range. Additionally, the unsecured
creditors will receive a recovery of ten times that under
the debtor's plan, plus the benefits from the enhanced
long-term viability of the enterprise.
Bloomberg said Hagan Capital and Silver Creek Capital Partners have
offered to buy the company and bring back Charney, who was fired in
2014 when the board accused him of misusing corporate funds and
violating the sexual-harassment policy.
About American Apparel
American Apparel, Inc., American Apparel (USA), LLC, American
Apparel Retail, Inc., American Apparel Dyeing & Finishing, Inc.,
KCL Knitting, LLC and Fresh Air Freight, Inc. sought Chapter 11
bankruptcy protection (Bankr. D. Del. Lead Case No. 15-12055) on
Oct. 5, 2015. The petition was signed by Hassan Natha as chief
financial officer.
The Debtors reported total assets of $199,360,934 and total
liabilities of $397,576,744.
The Debtors and their non-debtor affiliates operate a vertically
integrated manufacturing, distribution, and retail business
focused on branded fashion-basic apparel, employing approximately
8,500 employees across six manufacturing facilities and
approximately 230 retail stores in the United States and 17 other
countries worldwide.
The Debtors have engaged Jones Day as restructuring counsel,
Pachulski Stang Ziehl & Jones LLP as local counsel, Moelis &
Company as investment banker, FTI Consulting, Inc. as financial
advisor, DJM Real Estate as real estate consultant and Garden City
Group, LLC as claims and noticing agent.
AMERICAN AXLE: Estimates $3.9 Billion 2015 Sales
------------------------------------------------
American Axle & Manufacturing Holdings, Inc., presented at the 2016
Deutsche Bank Global Auto Industry Conference in Detroit, Michigan
on January 13.
AAM's 2015 Outlook:
* AAM is estimating full year sales to be approximately $3.9
billion in 2015.
* AAM expects full year EBITDA margin to be in the range of
14.5% to 14.75% of sales in 2015. The Company defines EBITDA
to be earnings before interest, income taxes, depreciation and
amortization. The Company believes that EBITDA is a
meaningful measure of performance as it is commonly utilized
by management and investors to analyze operating performance
and entity valuation. The Company's management, the
investment community and the banking institutions routinely
use EBITDA, together with other measures, to measure its
operating performance relative to other Tier 1 automotive
suppliers. EBITDA should not be construed as income from
operations, net income or cash flow from operating activities
as determined under GAAP.
* AAM expects full year free cash flow to be approximately $185
million to $190 million in 2015. The Company defines free
cash flow to be net cash provided by operating activities less
capital expenditures net of proceeds from the sale of
property, plant and equipment and from government grants. The
Company believes free cash flow is a meaningful measure as it
is commonly utilized by management and investors to assess the
Company's ability to generate cash flow from business
operations to repay debt and return capital to its
stockholders. Free cash flow is also a key metric used in the
Company's calculation of incentive compensation.
* AAM expects full year capital spending to be approximately 5%
of sales in 2015.
* In the fourth quarter of 2015, AAM elected to voluntarily
prepay the remaining principal balance of $135.9 million on
its secured Term Loan Facility.
AAM's 2016 Outlook:
* AAM is targeting sales of $4.0 billion in 2016. This sales
projection is based on the anticipated launch schedule of
programs in AAM's new and incremental business backlog and
the assumption that the U.S. Seasonally Adjusted Annual Rate
of sales is in the range of 17.5 million to 18.0 million
light vehicle units in 2016.
* AAM is targeting EBITDA margin in the range of 14.5% to
14.75% of sales in 2016.
* AAM is targeting free cash flow in the range of $120 million
to $140 million in 2016.
* AAM is targeting capital spending of approximately 6% in
2016.
AAM's New Business Backlog 2016 through 2018:
* AAM's backlog of new and incremental business launching from
2016 - 2018 is estimated at approximately $725 million in
future annual sales. AAM expects the launch cadence of the
three-year backlog to be approximately $225 million in 2016,
$375 million in 2017 and $125 million in 2018.
* Approximately 60% of AAM's new and incremental business
backlog for 2016 - 2018 is for customers other than GM. This
includes new and expanded orders supporting multiple global
premium vehicle manufacturers including Ford, Fiat Chrysler
Automotive, Jaguar Land Rover, Nissan, Mercedes Benz, Honda,
Isuzu, and MAN.
* Approximately 75% of AAM's new and incremental business
backlog for 2016 - 2018 is for passenger car and crossover
vehicle programs, including three global applications
featuring the Company's EcoTrac technology and one award
featuring our e-AAM technology.
* Over 90% of AAM's new and incremental business backlog for
2016 - 2018 is for programs sourced outside of the U.S. and
over 50% are for end markets outside of the U.S. These
awards are supported by the Company's global footprint and
continued expansion in Asia and Europe.
About American Axle
Headquartered in Detroit, Michigan, American Axle & Manufacturing
Holdings Inc. (NYSE: AXL) -- http://www.aam.com/-- manufactures,
engineers, designs and validates driveline and drivetrain systems
and related components and chassis modules for light trucks, sport
utility vehicles, passenger cars, crossover vehicles and
commercial vehicles.
As of Sept. 30, 2015, the Company had $3.39 billion in total
assets, $3.17 billion in total liabilities, and $227 million in
total stockholders' equity.
* * *
In September 2012, Moody's Investors Service affirmed the 'B1'
Corporate Family Rating (CFR) and Probability of Default Rating
(PDR) of American Axle.
American Axle carries a 'BB-' corporate credit rating from
Standard & Poor's Ratings Services. "The 'BB-' corporate credit
rating on American Axle reflects the company's 'weak' business
risk profile and 'aggressive' financial risk profile, which
incorporate substantial exposure to the highly cyclical light-
vehicle market," S&P said, as reported by the TCR on Sept. 6,
2012.
As reported by the TCR on Sept. 1, 2014, Fitch Ratings had
upgraded the Issuer Default Ratings (IDRs) of American Axle &
Manufacturing Holdings, Inc. (AXL) and its American Axle &
Manufacturing, Inc. (AAM) subsidiary to 'BB-' from 'B+'. The
upgrade of the IDRs for AXL and AAM is supported by the
fundamental improvement in the drivetrain and driveline supplier's
credit profile over the past several years.
AMERICAN CAPITAL: S&P Revises Outlook to Dev. & Affirms BB Rating
-----------------------------------------------------------------
Standard & Poor's Ratings Services said it revised its outlook
American Capital Ltd. (ACAS) to developing from stable. At the
same time, S&P affirmed its 'BB' issuer credit, senior secured, and
senior unsecured ratings on the company.
"The outlook revision reflects ACAS' announcement that its Board of
Directors has authorized the company to proceed with the
solicitation of offers to purchase the company or its various
business lines in whole or in part," said Standard & Poor's credit
analyst Matthew Carroll. S&P expects the solicitation process will
result in a sale and purchase agreement for the company.
S&P's ratings on ACAS reflect its relatively conservative balance
sheet leverage, offset by a higher risk profile, in S&P's view,
relative to banks and other business development companies (BDCs).
Similar to other BDCs, ACAS' investments include unsecured or
leveraged commercial loans, subordinated and mezzanine debt, and
highly leveraged investments such as collateralized loan
obligations. While ACAS' loss experience and nonaccrual loans have
been declining, nonaccrual loans at cost of 4.1% of loans at cost
remains high relative to peers, and subsidiary European Capital had
an additional $163 million of nonaccruing loans as of Sept. 30,
2015.
Seed investments used to incubate new investment funds are an
additional risk to capital. ACAS' debt to adjusted equity was 0.6x
as of Sept. 30, 2015, which S&P considers "very strong," as S&P's
criteria define the term. The company recently announced it was
selling down its senior floating rate loan portfolios and paying
off associated borrowings, which S&P expects to further reduce
leverage.
Although ACAS is among the largest and most diversified BDCs, it
has a relatively high exposure to common and preferred equity
investments. However, American Capital Asset Management, its asset
management subsidiary, accounts for the majority of common equity
investments with a fair value of $1.084 billion as of Sept. 30,
2015. Also, payment-in-kind income is a relatively high proportion
of interest income. ACAS has a "moderate" business position
because of its relatively high-risk business mix, which detracts
from business stability, in S&P's view. Positively, common equity
accounts for the majority of ACAS' funding, and it has minimal
short-term debt. S&P considers ACAS' funding and liquidity to be
"adequate."
S&P expects that ACAS' announced solicitation of offers to purchase
the company or its various business lines will result in the
company being sold, substantially in whole, within the next year.
As a result, S&P believes the company's previously announced plan
to spin-off American Capital Income Ltd. as a BDC and transition
ACAS into a global alternative asset manager will not proceed as
previously contemplated. S&P expects ACAS' leverage to remain well
below 1x, particularly as the company sells down its senior
floating rate loan portfolios and pays off associated borrowings.
S&P could raise or lower its ratings on ACAS by one or more notches
depending on the creditworthiness of the acquirer and ACAS' future
strategy and capital structure.
AMERICAN RENAL: S&P Affirms 'B' CCR Over First Lien Add-on
----------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'B' corporate
credit rating on Beverly, Mass.-based American Renal Holdings Inc.
The rating outlook is stable. S&P expects to transition the
corporate credit rating to American Renal Associates Holdings Inc.,
the listed entity in the IPO, and withdraw the corporate credit
rating on American Renal Holdings Inc. at the close of the
transaction.
At the same time, S&P affirmed its 'B' issue-level rating on the
company's increased revolving credit facility of $100 million
maturing in 2018 and $460 million first-lien term (including the
$60 million add-on). S&P revised the recovery on this facility to
'4', indicating its expectation for average (30% to 50%; in the
upper half of the range) recovery in the event of payment default,
from '3'. The revised recovery rating reflects the increase in
first-lien claims. S&P will withdraw the 'CCC+' ratings on the
company's $240 million second-lien term loan when the transaction
closes.
"American Renal's narrow treatment focus, pricing pressure from
Medicare and other third-party payors, and somewhat limited
geographic diversity are key factors in our assessment of business
risk," said Standard & Poor's credit analyst Kim Logan. Payor mix
is a key credit consideration for U.S. dialysis companies, as
Medicare and other government programs reimburse at a lower rate
than commercial, account for the overwhelming majority of patient
treatments and generate minimal if any profitability. S&P also
expects Medicare rate increases to lag cost increases, placing
ongoing pressure on margins. Thus, the percentage of treatments
that commercial insurers cover, the commercial insurers' pricing,
and efficient management practices are key mitigating strategies.
However, payor mix risk extends to the commercial payors because of
the pricing risk, due to their aggressive negotiations with
dialysis service providers.
S&P's stable rating outlook on American Renal Holdings Inc.
reflects S&P's view that the impact of prospective deleveraging
from the IPO proceeds and continued EBITDA growth will be moderated
by the company's aggressive financial policy and downside
reimbursement risk.
Although not likely in 2016, S&P could lower its rating if the
EBITDA margin contracts by an estimated 200 basis points (bps)
below S&P's expectation. This could occur if new clinics
underperform historical levels, reimbursement is weaker than
expected because of a further unfavorable shift in payor mix, there
is reduced reimbursement from commercial payors, or the company
faces difficulties managing costs. Such a scenario would likely
result in very thin cash flow after dividends.
S&P could raise its ratings if American Renal steadily deleverages
through EBITDA growth to achieve sustained adjusted leverage at or
below 5x. This would correspond to an increase in gross margin of
at about 200 bps from S&P's 2016 estimates. Given the presence of
a financial sponsor and in light of its history of dividend
payments, S&P believes a reduction in leverage would likely be an
opportunity to releverage the company to benefit shareholders.
AS SEEN ON TV: Settles Dispute with Former Employee for $30,000
---------------------------------------------------------------
As Seen On TV, Inc., settled an action initially filed in June 2014
by a former employee and director of the Company, in the U.S.
District Court for the Eastern District of Pennsylvania based on
certain stock options granted to the former employee and other
matters relating to the former employee's dismissal from the
Company.
The action was filed against the Company and certain of its former
executive officers. Without admitting fault, liability or
wrongdoing the Company and former employee agreed to settle the
action in consideration of the Company tendering $30,000 to the
former employee and issuing the former employee 5,000,000 shares of
its common stock. In consideration of the cash payment and stock,
the former employee released the Company and its affiliates,
including but not limited to past and present officers and
directors, from all liability relating to the action and from all
other potential future claims.
About As Seen on TV
Clearwater, Fla.-based As Seen On TV, Inc., is a direct response
marketing company. It identifies, develops, and markets consumer
products.
As reported by the TCR on Nov. 6, 2012, As Seen On TV entered into
an Agreement and Plan of Merger with eDiets Acquisition Company
("Merger Sub"), eDiets.com, Inc., and certain other individuals.
Pursuant to the Merger Agreement, Merger Sub will merge with and
into eDiets.com, and eDiets.com will continue as the surviving
corporation and a wholly-owned subsidiary of the Company. The
Merger Agreement was completed on April 2, 2014.
The Company incurred a net loss of $9.32 million on $1.98 million
of revenues for the year ended March 31, 2014, as compared with
net income of $3.69 million on $9.40 million of revenues for the
year ended March 31, 2013.
The Company's balance sheet at June 30, 2014, showed $39.8
million in total assets, $46.3 million in total liabilities,
$2.70 million in redeemable preferred stock, and a $9.18 million
total stockholders' deficiency.
EisnerAmper LLP, in Iselin, New Jersey, issued a "going concern"
qualification on the consolidated financial statements for the
year ended March 31, 2014. The independent auditors noted that
the Company's recurring losses from operations and negative cash
flows from operations raise substantial doubt about its ability to
continue as a going concern.
Bankruptcy Warning
The Company stated the following statements in its quarterly
report for the period ended June 30, 2014:
"We have experienced losses from operations since our inception
and cannot predict how long we will continue to incur losses or
whether we ever become profitable. We have relied on a series of
private placements of secured and unsecured promissory notes; the
most recent promissory note sale was a senior secured promissory
note on April 3, 2014 in the amount of $10,180,000 whereby the
Company received net proceeds of approximately $8,400,000 after
debt issuance costs and original issuance discount.
"The Ronco is currently in default on $1,545,000 of its
outstanding 18% promissory notes. Ronco is also in default on its
1.5% Secured Promissory Note with a current outstanding balance of
$8,620,000; however, on March 7, 2014, Ronco and certain creditors
entered into a forbearance agreement whereby each creditor will
forbear from exercising its rights and remedies under the 1.5%
Secured Promissory Note for up to 1 year provided Ronco does not
default on the forbearance agreement.
"Currently, the Company does not have a line of credit to draw
upon. The Company's commitments and contingencies will either
utilize future operating cash flow or require the sale of debt or
equity securities to fulfil the commitments.
We have undertaken, and will continue to implement, various
measures to address our financial condition, including:
* Significantly curtailing costs and consolidating operations,
where feasible.
* Seeking debt, equity and other forms of financing, including
funding through strategic partnerships.
* Reducing operations to conserve cash.
* Deferring certain marketing activities.
* Investigating and pursuing transactions with third parties,
including strategic transactions and relationships.
There can be no assurance that we will be able to secure the
additional funding we need. If our efforts to do so are
unsuccessful, we will be required to further reduce or eliminate
our operations and/or seek relief through a filing under the U.S.
Bankruptcy Code. These factors, among others, raise substantial
doubt about our ability to continue as a going concern. The
accompanying condensed consolidated financial statements do not
include any adjustments to the recoverability and classification
of asset carrying amounts or the amount and classification of
liabilities that might result from the outcome of these
uncertainties."
ATNA RESOURCES: Bankruptcy Proceedings Raise Going Concern Doubt
----------------------------------------------------------------
Atna Resources Ltd.'s illiquidity and bankruptcy proceedings, and
continuing weak market conditions affecting its ability to raise
financing, sell assets and/or engage in mergers or amalgamations
raise substantial doubt about its ability to continue as a going
concern, according to Paul H. Zink, audit committee chairman, and
David H. Watkins, chairman of the company in a Form 6-K filing with
the U.S. Securities and Exchange Commission dated November 19,
2015.
The officers pointed out: "The company is dependent on the outcome
of the bankruptcy proceedings, and will require additional
financing in order to complete the restructuring of its various
debt obligations and to fund required capital expenditures.
"Due to ongoing liquidity issues, the company has failed to meet
certain financial obligations and liabilities.
"The accompanying Unaudited Interim Condensed Consolidated
Financial Statements and these related notes have been prepared
assuming that the company will continue as a going concern,
although, this is in substantial doubt. It is contingent upon the
company completing the necessary steps to restructure its existing
debt obligations and obtain court approval of a plan of compromise
and arrangement, as wells as, among other things, management's
ability to successfully implement such a plan. Further, any plan
of compromise and arrangement could materially change the amounts
and classification of assets and liabilities reported in these
consolidated financial statements.
"As a result of the Bankruptcy Petitions, the realization of assets
and the satisfaction of liabilities are subject to uncertainty.
While operating as a debtor-in-possession pursuant to the
Bankruptcy Code, the company may sell or otherwise dispose of or
liquidate assets or settle liabilities, subject to the approval of
the Court or as otherwise permitted in the ordinary course of
business for amounts other than those reflected in the accompanying
consolidated financial statements."
At September 30, 2015, the company had total assets of $76,784,700,
total liabilities of $34,499,000, and total shareholders' equity of
$42,285,700.
The company reported a net loss of $6,058,800 for the three months
ended September 30, 2015, compared with a net loss of $2,933,400
for the three months ended September 30, 2014.
A full-text copy of the company's Form 6-K filing is available for
free at: http://tinyurl.com/zc79fv9
Full-text copies of the interim consolidated financial statements
and management discussion and analysis for the relevant period are
available for free at:
* http://tinyurl.com/huzhccr
* http://tinyurl.com/znsxqoe
Atna Resources Ltd. was incorporated in British Columbia in 1984
and its corporate management office is located in Golden, Colorado.
The company is involved in all phases of the mining business,
including exploration, preparation of feasibility studies,
permitting, construction, development, operation and reclamation of
mining properties. The company is currently operating the Pinson
Underground gold mine near Winnemucca, Nevada, the Briggs mine
located in Inyo County, California, and other development and
exploration-stage properties in Canada and the U.S.
BON-TON STORES: Reports 1.6% Store Decrease in Holiday Sales
------------------------------------------------------------
The Bon-Ton Stores, Inc., announced that its comparable store sales
for the nine-week holiday period ended Jan. 2, 2016, decreased
1.6%, in line with guidance provided on Nov. 19, 2015. Total sales
for the combined months of November and December were $784 million,
a decrease of 1.5% from sales of $796 million in the prior year
nine-week holiday period.
Kathryn Bufano, president and chief executive officer, commented,
"We saw a significant improvement in holiday sales following soft
selling trends during an unseasonably warm November. The rebound
began with a successful Black Friday event and extended through the
month of December. We also drove double-digit sales growth in our
omnichannel operations, successfully leveraging our new West
Jefferson facility and store-fulfillment network. Based on current
sales trends, we are maintaining our full-year Adjusted EBITDA
guidance (see Note 1) of a range of $110 million to $120 million,
exclusive of implementation costs associated with planned expense
reductions in fiscal 2016. We expect to be at the low end of this
range given the higher level of promotional activity, particularly
in seasonal goods. The decrease in sales of cold-weather
merchandise, in fact, exceeded increases we otherwise achieved in
non-seasonal merchandise categories. That said, overall we are
pleased to see the traction we are gaining on some of our
merchandising initiatives and will remain focused on continued
execution while prudently managing our inventory levels and
expenses."
The Company will provide additional details on March 15, 2016, when
it reports its results for the fourth quarter and fiscal 2015
periods ending Jan. 30, 2016.
About Bon-Ton Stores
The Bon-Ton Stores, Inc., with corporate headquarters in York,
Pennsylvania and Milwaukee, Wisconsin, operates 270 stores, which
includes nine furniture galleries and four clearance centers, in
26 states in the Northeast, Midwest and upper Great Plains under
the Bon-Ton, Bergner's, Boston Store, Carson's, Elder-Beerman,
Herberger's and Younkers nameplates. The stores offer a broad
assortment of national and private brand fashion apparel and
accessories for women, men and children, as well as cosmetics and
home furnishings. For further information, please visit the
investor relations section of the Company's Web site at
http://investors.bonton.com.
Bon-Ton Stores reported a net loss of $6.97 million on $2.75
billion of net sales for the fiscal year ended Jan. 31, 2015,
compared to a net loss of $3.55 million on $2.77 billion of net
sales for the fiscal year ended Feb. 1, 2014. The Company reported
a net loss of $21.6 million for the fiscal year ended Feb. 2,
2013.
As of Oct. 31, 2015, the Company had $1.86 billion in total assets,
$1.88 billion in total liabilities and a total shareholders'
deficit of $17.79 million.
* * *
As reported in the TCR on Dec. 4, 2015, Moody's Investors Service
downgraded Bon-Ton Stores's Corporate Family Rating to Caa1 from
B3. The company's Speculative Grade Liquidity rating was affirmed
at SGL-2. The rating outlook is stable. The downgrade considers
the continuing and persistent negative pressure on Bon-Ton's
revenue and EBITDA margins which has been accelerating during the
course of fiscal 2015.
Standard & Poor's Ratings Services in December 2015 lowered its
corporate credit rating Bon-Ton Stores to 'CCC+' from 'B-'.
The outlook is negative. S&P said the downgrade reflects both
Bon-Ton's weakening performance and our forecast for an
unsustainable capital structure and "less than adequate" liquidity.
BOREAL WATER: Issues $250,000 Secured Debentures
------------------------------------------------
Boreal Water Collection, Inc., entered into an agreement with Mr.
Abdul Aziz Al Athel on Jan. 5, 2016, for a $250,000 Secured
Debentures and Common Share Warrants in Units of $1,000.
Each Unit contains one 7.5% interest bearing Secured Debenture in
the principal amount of $1000.00 and a Warrant to purchase
1,352,532 common shares at an exercise price of $0.0075 per share.
Interest is payable semi-annually. The debenture is re-payable 24
months after the closing date. The security is a "mortgage on the
assets of the company" junior to the "existing bridge loan mortgage
and line of credit." The warrant exercise period is two years from
the date of issuance; and may be subscribed in whole or in part on
a total of two occasions. If all the Warrants are exercised, a
total of 338,133,000 common shares will be issued.
About Boreal Water
Kiamesha Lake, N.Y.-based Boreal Water Collection, Inc., is a
personalized bottled water company specializing in premium custom
bottled water.
Boreal Water reported a net loss of $886,000 on $2.41 million of
sales for the year ended Dec. 31, 2014, compared with net income of
$613,000 on $2.15 million of sales for the year ended Dec. 31,
2013.
As of March 31, 2015, the Company had $3 million in total assets,
$2.68 million in total liabilities, and $314,000 in total
stockholders' equity.
Terry L. Johnson, CPA, in Casselberry, Florida, issued a "going
concern" qualification on the consolidated financial statements for
the year ended Dec. 31, 2014. The accounting firm noted that the
Company has incurred a deficit of approximately $3.6 million and
has used approximately $800,000 of cash due to its operating
activities in the two years ended Dec. 31, 2014. The Company may
not have adequate readily available resources to fund operations
through Dec. 31, 2015. This raises substantial doubt about the
Company's ability to continue as a going concern.
BRANDYWINE REALTY: Fitch Raises Issuer Default Rating From BB+
--------------------------------------------------------------
Fitch Ratings has upgraded the Issuer Default Rating for Brandywine
Realty Trust (NYSE: BDN) and its operating partnership Brandywine
Operating Partnership, L.P. (collectively, Brandywine) to 'BBB-'
from 'BB+'.
The Rating Outlook is Stable.
KEY RATING DRIVERS
The ratings upgrade for Brandywine to investment-grade centers on
Fitch's expectation of the company reducing leverage to the mid-6x
range in 2016 and sustain this level for the foreseeable future.
Fitch expects proceeds from announced 4Q'15 dispositions, combined
with additional sales in early 2016, to be used primarily to reduce
debt and fund development, primarily FMC Tower, which should be
delivered in mid-2016.
Upon stabilization of FMC Tower, Fitch expects the company's
leverage to sustain in the low- to mid-6x area. Fitch's current
ratings have moderate tolerance for BDN's leverage increasing above
7.0x due to share buybacks and/or new development. The company's
portfolio of CBD and suburban office properties has continued to
strengthen as highlighted by higher occupancy and improved leasing
that has bolstered continued decent same-store net operating income
(SSNOI) growth. These credit strengths are mitigated by a UA/UD
ratio that is low for the rating, moderately weak fixed-charge
coverage relative to investment-grade peers, and lease-up risk
related to FMC Tower.
ASSET SALES ACCELERATE DE-LEVERING
Brandywine has capitalized on a robust sales market in the past 12
months, publicly announcing the sale of over $700 million in assets
during 2015. The sales have not only monetized non-core assets,
but have also reduced BDN's secured debt stack by $236 million,
accelerating the de-levering of the company's balance sheet well
beyond Fitch's near-term expectations. Pro forma for the announced
transactions, Brandywine's leverage was 6.8x at Sept. 30, 2015.
SLIGHTLY WEAK LIQUIDITY DUE TO DEVELOPMENT PIPELINE
The company's liquidity coverage is 0.8x when considering
Brandywine's unfunded development pipeline, the largest portion of
which relates to $229 million of unfunded costs for FMC Tower. The
company expects to fund these costs, upcoming debt maturities and
recurring capital expenditures with the aforementioned asset sales.
Fitch defines liquidity coverage as liquidity sources divided by
liquidity uses. Liquidity sources include unrestricted cash,
availability under unsecured revolving credit facilities and
projected retained cash flows from operating activities. Liquidity
uses include pro rata debt maturities, projected recurring capital
expenditures and development expenditures.
SLIGHTLY LOW UNENCUMBERED ASSET COVERAGE
Brandywine's unencumbered asset coverage of unsecured debt (net of
readily available cash) was 1.8x at 3Q'15, which is low for the
'BBB-' IDR. Fitch views asset coverage of unsecured debt above
2.0x as more consistent with an investment-grade profile. This
ratio remains level assuming stabilization of an unencumbered FMC
Tower by YE17 at an 8% yield, pro forma for dispositions of
unencumbered assets announced in 2015 and expected in 2016.
FIXED CHARGE COVERAGE
The company's fixed-charge coverage was 1.9x for the LTM period
ended Sept. 30, 2015, relatively unchanged since 2012. Coverage
has been burdened by elevated recurring maintenance capital
expenditures due to relatively slowly improving office
fundamentals. Going forward, Fitch expects coverage to improve to
the mid-2.0x range due to manageable lease expirations and the
company disposing of lower-growth, higher capital-intensive
assets.
MID-ATLANTIC PORTFOLIO FOCUS
Brandywine's office portfolio is focused in the Mid-Atlantic United
States, with Pennsylvania and greater Washington DC generating 81%
of 3Q'15 NOI. The Pennsylvania portfolio is well-diversified
across various submarkets, with the Philadelphia central business
district representing the largest submarket at 35% of NOI. Fitch
expects the company to continue growing its footprint in the CBD
and metro regions over the medium-term while reducing exposure to
slower growth suburban properties in New Jersey, Delaware, Richmond
and California.
STRONG TENANT DIVERSIFICATION
The GSA is BDN's largest tenant and contributed 6.9% of annual base
rent (ABR) for the quarter ended Sept. 30, 2015. Excluding the
GSA, the remaining top 10 tenants generate only 17.8% of total base
rent, with no tenant representing greater than 2.9% of ABR. The
tenant base is also of strong credit quality with 6 of the 20
largest tenants rated investment grade by Fitch (Fitch does not
rate the other 14).
SOLID PORTFOLIO FUNDAMENTALS
Operating fundamentals have been improving, with cash same-store
NOI growth of 3.0% during the first nine months of 2015. Fitch
forecasts growth to advance into the low single digits towards the
end of 2017, driven by stronger leasing and same-store core
occupancy sustaining in the mid-90% area, consistent with the 94.2%
rate as of Sept. 30, 2015. Year-to-date GAAP leasing spreads have
been a solid 6.7%, although tenant allowances and leasing
commissions per square foot per lease year have been volatile and
have been slightly above the company's long-term average over the
last six quarters.
LIMITED LEASE ROLLOVER
Brandywine has a well-laddered lease maturity schedule with limited
near-term rollover. 22.8% of base rent expires through 2017 and
management has been proactive in renewing leases well in advance of
expiration, which has contributed to higher than expected
leasing-related capital expenditures.
Preferred Stock Notching
The two-notch differential between BDN's IDR and preferred stock
rating is consistent with Fitch's criteria for corporate entities
with an IDR of 'BBB-'. Based on Fitch research titled 'Treatment
and Notching of Hybrids in Nonfinancial Corporate and REIT Credit
Analysis', these preferred securities are deeply subordinated and
have loss absorption elements that would likely result in poor
recoveries in the event of a corporate default.
STABLE OUTLOOK
The Stable Outlook reflects Fitch's expectation that BDN will reach
targeted operating metrics and maintain them at appropriate levels
through the rating horizon.
KEY ASSUMPTIONS
Fitch's key assumptions within its rating case for the issuer
include:
-- Low single-digit same store growth in 2016 and 2017;
-- Dispositions of $354 million through the balance of 2015 at
7.4% cap rate;
-- Net dispositions of approximately $700 million in 2016 at
7.1% cap rate, and none in 2017;
-- No acquisitions in 2017;
-- (Re)development expenditures of $109 million, $292 million,
and $95 million in 2015 - 2017, respectively;
-- Recurring maintenance capex of $31 million, $50 million, and
$42 million in 2015 - 2017, respectively;
-- $300 million unsecured issuance in 2017 to refinance note
maturity;
-- Approximately $230 million in secured debt repaid via net
proceeds from 2015 asset dispositions, $130 million mortgage
note refinanced in 2015;
-- All $100 million Series E preferred stock repurchased and
retired in 2017.
RATING SENSITIVITIES
The following factors may have a positive impact on Brandywine's
ratings and/or Outlook:
-- Fitch's expectation of leverage sustaining around 6x
(leverage at Sept. 30, 2015 was 6.9x);
-- Fitch's expectation of fixed-charge coverage sustaining
above 2.5x (coverage for TTM ended Sept. 30, 2015 was 1.9x);
-- Unencumbered asset coverage of unsecured debt (based on a
stressed 9% cap rate) maintaining above 2.5x (asset coverage
was 1.8x as of Sept. 30, 2015).
These factors may have a negative impact on the company's ratings
and/or Outlook:
-- Fitch's expectation of leverage sustaining above 7x;
-- Fitch's expectation of fixed-charge coverage sustaining
below 1.5x;
-- Actions indicative of the company prioritizing equity
stakeholders ahead of creditors, such as further stock
buybacks and/or speculative development starts.
FULL LIST OF RATING ACTIONS
Fitch has upgraded Brandywine's ratings as:
Brandywine Realty Trust
-- IDR to 'BBB-' from 'BB+';
-- Preferred Stock to 'BB' from 'BB-'/RR6.
Brandywine Operating Partnership, L.P.
-- IDR to 'BBB-' from 'BB+';
-- Senior unsecured line of credit to 'BBB-' from 'BB+'/RR4;
-- Senior unsecured term loans to 'BBB-' from 'BB+'/RR4;
-- Senior unsecured notes to 'BBB-' from 'BB+'/RR4.
The Rating Outlook is Stable.
CALIFORNIA RESOURCES: S&P Lowers CCR to 'CCC+' on Higher Leverage
-----------------------------------------------------------------
Standard & Poor's Ratings Services lowered its corporate credit
rating on Los Angeles-based exploration and production (E&P)
company California Resources Corp. (CRC) to 'CCC+' from 'BB-'. The
outlook is negative.
At the same time, S&P lowered the rating on CRC's senior unsecured
debt to 'CCC+' from 'BB-'. The recovery rating on the unsecured
debt is '3', indicating S&P's expectation of meaningful recovery
(50% to 70%; upper half of range) in the event of a default. S&P
also lowered the ratings on CRC's senior secured debt, including
its second-lien notes, to 'B' from 'BB+'. The recovery rating on
this debt remains '1', indicating S&P's expectation of very high
(90% to 100%) recovery in the event of a default.
"The downgrade reflects the implementation of the recent change in
our base case oil and natural gas price assumptions," said Standard
& Poor's credit analyst Paul Harvey.
S&P lowered its price assumptions for West Texas Intermediate (WTI)
crude oil by about 25% and for Brent crude by about 30%, which
resulted in significantly weaker financial measures for oil-focused
CRC, with funds from operations (FFO)/debt under 5% and debt/EBITDA
over 10x for the next two years. At such levels, S&P assess debt
leverage as unsustainable. This assessment offsets what S&P
expects to be numerically strong liquidity over the next 12 to 18
months. Although S&P expects financial measures to moderately
improve with recovering oil prices, under its base case assumptions
improvement will be limited unless CRC repays debt most likely
through asset sales, which S&P believes is unlikely at this time.
The ratings on CRC reflect S&P's assessment of the company's fair
business risk profile, highly leveraged financial risk profile, and
adequate liquidity.
The negative outlook reflects S&P's expectation for continued weak
crude oil prices and the potential for liquidity to deteriorate
beyond S&P's current assumptions. In particular, CRC needs to
address potential covenant violations in the first half of 2016,
without significantly reducing its borrowing capacity.
S&P could lower the ratings if expected covenant amendments would
result in significantly diminished liquidity or S&P expected that
CRC would pursue more aggressive capital spending to the detriment
of liquidity.
S&P could return the rating outlook to stable if it expected
debt/EBITDAX to trend downward toward 5x, and FFO/debt to approach
12%. This would most likely occur if CRC is able to reduce debt
levels, likely through asset sales, or S&P expected sustained WTI
crude oil prices would average roughly $60 per barrel.
CARECORE NATIONAL: S&P Revises Outlook to Stable & Affirms 'B' CCR
------------------------------------------------------------------
Standard & Poor's Ratings Services said that it revised its outlook
on CareCore National LLC (CareCore; d/b/a eviCore) to stable from
positive. In addition, S&P affirmed its 'B' long-term corporate
credit rating on the company.
S&P also affirmed its 'B' debt ratings on CareCore's senior secured
credit facilities, which include a $110 million revolver and term
loan B ($874.6 million outstanding as of Sept. 30, 2015). The
recovery ratings on these debt issues are '3'. The '3' recovery
rating indicates S&P's expectation that lenders could expect
meaningful recovery at the lower end of 50%-70% in the event of a
payment default.
"The ratings reflect CareCore's weak business risk profile and
aggressive financial risk profile," said Standard & Poor's credit
analyst James Sung. According to S&P's criteria, this combination
results in an anchor score of 'b+'. S&P applies an unfavorable
comparative rating analysis modifier that results in the 'B'
rating. This modifier is based on the company's overall limited
business scope (within the broad health care services sector),
significant client concentrations, remaining integration/execution
risks, and an unresolved potential regulatory liability. Moreover,
the company's leverage (5.2x, on S&P's basis as of
Sept. 30, 2015) is temporarily higher than the aggressive financial
risk category (4.0x-5.0x).
CareCore, which rebranded as eviCore in June 2015, substantially
improved its market position and size/scale through its December
2014 acquisition of key competitor MedSolutions Holdings Inc. The
company is an industry leader in providing specialty benefit
management in radiology, cardiology, and other areas for a wide
range of health care payors, including major national/regional
health insurers. The company's competitive position benefits from
its No. 1 or No. 2 market positions in the majority of its nine
product/service lines. As of November 2015, CareCore covered 91
million unique lives across its commercial/Medicare/Medicaid
customer segments. Based on S&P's estimates, the company is on
track to generate revenues of $1.5 billion and adjusted EBITDA of
roughly $180 million for full-year 2015.
"We are revising the outlook to stable from positive because the
company's revenue/EBITDA will fall short of our original
expectations, and we believe any potential upgrade is now beyond
our outlook horizon of 12 months. The company's business
fundamentals are solid as it successfully retained all of its key
clients in 2015 and it is just beginning to realize the full
competitive benefits of the MedSolutions acquisition. However,
revenue growth (on a gross basis) has been slowed by implementation
delays by certain clients and higher growth in
administrative-services-only business versus capitated business. In
addition, the company's direct and operating costs have grown as it
has invested in customer service infrastructure and technology
systems (in line with its integration plan)," S&P said.
"The stable outlook is based on our expectation that CareCore will
complete most of its merger integration work by year-end 2016. We
expect the company to generate double-digit revenue and
single-digit EBITDA growth in 2016. This is based on our
assumptions of continued high client retention, stable gross
margins (excluding prior-period development), and slightly improved
operating leverage. From a financial risk perspective, we expect
the company to delever based on stronger EBITDA growth in 2016 and
a combination of required debt prepayments and potential voluntary
prepayments. We forecast the debt-to-EBITDA ratio to approach 4.5x
by year-end 2016 and EBITDA interest coverage of 3.5x-4.0x," S&P
noted.
An upgrade is unlikely during the next 12 months. However, S&P
would consider an upgrade during the long term if the company is
able to demonstrate stronger revenue and EBITDA growth (via high
client retention and growth with existing accounts) and better
product/client diversity. The company's ability to retain its top
clients would be a key upgrade consideration. From a financial
risk perspective, the company would need to delever toward the
lower end of 4x-5x on a sustainable basis. EBITDA interest
coverage would need to be maintained at more than 4x. Moreover,
the company would need to resolve its outstanding regulatory
issue.
S&P would consider a downgrade during the next 12 months if the
company is unable to execute its business strategy and delever
according to plan. Possible downside scenarios could include
general business deterioration, such as the loss of one or two of
its top clients, or a more aggressive financial policy in the form
of a substantial dividend recapitalization or a large, debt-funded
acquisition. S&P would consider a downgrade if leverage increases
to 5.0x or EBITDA interest coverage decreases to 2.0x or lower on a
sustained basis. In addition, a downgrade could be triggered if
liquidity becomes constrained such as if liquidity sources fail to
cover 1.2x liquidity uses.
CASPIAN SERVICES: Incurs $33.2 Million Net Loss in Fiscal 2015
--------------------------------------------------------------
Caspian Services, Inc., filed with the Securities and Exchange
Commission its annual report on Form 10-K disclosing a net loss of
$33.2 million on $16.4 million of total revenues for the year ended
Sept. 30, 2015, compared to a net loss of $18.8 million on $29.9
million of total revenues for the year ended Sept. 30, 2014.
As of Sept. 30, 2015, the Company had $43.1 million in total
assets, $109.9 million in total liabilities, all current, and a
$66.8 million total deficit.
Haynie & Company, P.C., in Salt Lake City, Utah, the Company's
independent accounting firm, included a "going concern"
qualification in its report on the consolidated financial
statements for the year ended Sept. 30, 2015.
"A Company creditor has indicated that it believes the Company may
be in violation of certain covenants of certain substantial
financing agreements. The financing agreements have acceleration
right features that, in the event of default, allow for the loan
and accrued interest to become immediately due and payable. As a
result of this uncertainty, the Company has included the note
payable and all accrued interest as current liabilities at
September 30, 2014. At September 30, 2014, the Company had
negative working capital of approximately $85,005,000 and for the
year ended September 30, 2014 the Company had a net loss
attributable to Caspian Services, Inc. of approximately
$16,642,000. Uncertainty as to the outcome of these factors raises
substantial doubt about the Company's ability to continue as a
going concern. The accompanying consolidated financial statements
do not include any adjustments that might be necessary if the
Company is unable to continue as a going concern."
Bankruptcy Warning
"As of September 30, 2015 the outstanding amount due under the
Balykshi Loan was $27,968. In addition, were EBRD to accelerate
its put option the accelerated put price would be $10,000 plus an
internal rate of return of 20% per annum. At September 30, 2015
this repayment obligation was $23,644. Additionally, as noted
above, after increasing our ownership share in MOBY to
approximately 66% through the acquisition of Kyran, we are required
to consolidate MOBY's financial statements into the Company's
financial statements. As a result, the EBRD Loan to MOBY has been
consolidated into the Company's financial statements. At September
30, 2015 the balance of the EBRD Loan to MOBY was $6,314. Pursuant
to the EBRD-MOBY financing agreements, repayment of approximately
60% of this loan balance is guaranteed by the MOBY minority
shareholder and approximately 31% is guaranteed by Caspian
Services, Inc. Given the difficult equity and credit markets and
our current financial condition, we believe it would be very
difficult, if not impossible, to obtain funding to repay these
obligations. If we were unable to repay the loans or satisfy the
put, we anticipate EBRD could seek any legal remedies available to
it to obtain repayment of its loans and its put right. These
remedies could include forcing the Company into bankruptcy."
A full-text copy of the Form 10-K is available for free at:
http://is.gd/SE4NgM
About Caspian Services
Headquartered in Salt Lake City, Caspian Services, Inc., was
incorporated under the laws of the state of Nevada on July 14,
1998. Since February 2002 the Company has concentrated its
business efforts to provide diversified oilfield services to the
oil and gas industry in western Kazakhstan and the Caspian Sea,
including providing a fleet of vessels, onshore, transition zone
and marine seismic data acquisition and processing services and a
marine supply and support base in the port of Bautino, in Bautino
Bay, Kazakhstan.
CCM MERGER: Moody's Hikes Corporate Family Rating to B2
-------------------------------------------------------
Moody's Investors Service upgraded CCM Merger, Inc.'s Corporate
Family Rating to B2 from B3 and its Probability of Default Rating
to B2-PD from B3-PD. At the same time, CCM's $275 million senior
unsecured notes due 2019 were upgraded one notch to Caa1 from Caa2.
The rating on CCM's term loan and revolver were upgraded two
notches to Ba3 from B2. The rating outlook is stable.
Ratings upgraded:
Corporate Family Rating, to B2 from B3
Probability of Default Rating, to B2-PD from B3-PD
$20 million senior secured revolver due 2019, to
Ba3 (LGD 2) from B2 (LGD 3)
$434 million (outstanding) senior secured term loan
B due 2021, to Ba3 (LGD 2) from B2 (LGD 3)
$275 million 9.125% unsecured notes due 2019, to
Caa1 (LGD 5) from Caa2 (LGD 5)
The upgrade of CCM's Corporate Family Rating to B2 reflects the
continued stability of the Detroit, Michigan gaming market along
with a combination of steady EBITDA improvement and debt repayment
that Moody's believes will allow CCM to reduce and maintain
debt/EBITDA to below 5.5 times, the stated trigger for an upgrade.
CCM's debt/EBITDA for the latest 12-month period ended September
30, 2015 was 5.9 times, dropping steadily each quarter from about
6.7 times at the end of fiscal 2014. Further, with about $50
million in annual free cash flow expected going forward, additional
debt repayment is likely and the company is expected to reduce
debt/EBITDA to about 5.0 times by the end of fiscal 2016, a level
more consistent with a B2 Corporate Family Rating for a gaming
issuer with CCM's asset profile.
The 2-notch upgrade of CCM's revolver and term loan rating reflects
the impact on Moody's Loss Given Default analysis caused by the
decreased amount of secured debt relative to the company's total
debt as a result of term loan reductions well above scheduled
repayment amounts.
RATINGS RATIONALE
CCM's B2 Corporate Family Rating considers the favorable
characteristics of the Detroit gaming market, which has significant
population density as measured by adults per gaming position.
Additionally, state law allows only three casinos in the city
providing a barrier to entry for new competitors. Also supporting
the rating is CCM's positive free cash flow generating ability,
along with the fact that the there are no near-term scheduled debt
maturities until 2019.
Key credit risks include the company's small size in terms of
gaming revenue and single asset profile. Also considered a risk is
CCM's leverage. The company has been successful at reducing this
leverage, however debt/EBITDA at or above 5.0 times is a level that
Moody's considers high for a relatively small gaming company with
revenue and earnings coming from a single gaming market.
Ratings improvement is limited at this time given CCM single asset
profile. A higher rating is possible over the longer-term and would
require that the company demonstrate the ability and willingness to
maintain debt/EBITDA below 4.0 times. A higher rating would also
require a higher level of confidence on Moody's part that the
Detroit gaming market will remain stable over the long-term.
Ratings could be lowered if CCM's EBITDA trend turns negative for
any reason and it appears that debt/EBITDA will rise to and stay
above 6.0 times.
CCM Merger Inc., through its subsidiary Detroit Entertainment
L.L.C, owns and operates the MotorCity Casino Hotel in Detroit,
Michigan, one of only three commercial casinos that are allowed to
operate in the Detroit area. CCM is owned by Mrs. Marian Illitch
and generates about $427 million in net revenue. The company is
privately-held as does not publicly disclose detailed financial
information.
CODERE FINANCE: N.Y. Court Recognizes U.K. Restructuring Scheme
---------------------------------------------------------------
The Hon. James L. Garrity, Jr., of the U.S. Bankruptcy Court for
the Southern District of New York granted the petition filed by
Codere Finance (UK) Limited seeking recognition in the United
States of a voluntary restructuring proceeding through a scheme of
arrangement with its creditors pending before the Chancery Division
(Companies Court) of the High Court of Justice of England and
Wales.
A scheme of arrangement allows companies to effect compromises or
arrangements, including restructuring their liabilities, with their
members or creditors.
David Jimenez Marquez, the duly appointed foreign representative of
Codere Finance, filed under Chapter 15 of the U.S. Bankruptcy Code
to ensure that no creditors can bypass the effect of the Scheme by
commencing litigation or taking other actions in the United States
to obtain a greater recovery than other, similarly situated
creditors.
Court documents indicate that the overwhelming majority of Codere
UK's creditors are the holders of its $300,000,000 in 9.25% Notes
due 2019 and its EUR760,000,000 in 8.25% Notes due 2015. Codere UK
has no other financial debt.
According to Mr. Marquez, Codere UK has assets in the Southern
District of New York in the form of $50,000 currently on deposit in
a Wachtell, Lipton, Rosen & Katz client trust account at the New
York, New York branch of JPMorgan Chase Bank, N.A. He added that
the Indentures and the Notes are, by their terms, governed by New
York law.
Codere UK is a direct, wholly owned subsidiary of Codere S.A.,
which is incorporated under the laws of Spain. Approximately
51.35% of the shares of Holdco are owned by Masampe Holding B.V., a
Dutch private limited company, 30.87% are owned by the public, and
the remaining 17.78% are held by members of the Martinez Sampedro
family. The business of the Group is focused on multi-national
gaming activities.
The Restructuring to be facilitated by the Scheme is proposed to
(i) provide a comprehensive solution to the financial problems
faced by the Group and (ii) maximize recovery for the Noteholders.
Approximately 95.1% of the Noteholders have agreed to support the
Restructuring at this time, according to Court documents.
The Group's Financial Situation
For the 12 months ending June 30, 2015, the Group generated
operating revenue of EUR1,534.6 million and EBITDA of EUR280.5
million. Argentina, Mexico, Italy, and Spain accounted for
EUR259.3 million, or approximately 92%, of the Group's EBITDA for
the 12-month period ending June 30, 2015.
According to Mr. Marquez, the last few years have been difficult
for the Group. In the 12 months ending June 30, 2015, the Group
derived 44% of its consolidated adjusted EBITDA (before corporate
overhead) from operations in Argentina. However, he said, the
operating environment in Argentina has been, and remains,
challenging and unpredictable, due principally to the unstable
macroeconomic conditions.
Mr. Marquez also said other factors that have affected the Group's
performance include the effects of the economic recession in Europe
and the introduction of anti-smoking regulations in places where
the Group has operations.
In 2013, the Group generated operating revenue of EUR1.5 billion
and EBITDA of EUR206 million, compared to EUR287 million in the
same period in 2012, an EBITDA decrease of 28%.
As a result of those events, projected short-term liquidity, and
impending debt maturities, the board of directors of Holdco filed
for protection under Article 5 bis of the Spanish Insolvency Law
(pre concurso) on Jan. 2, 2014. Some of the Spanish sub-holding
companies within the Group also filed for such protection in early
February 2014. This afforded those companies the time to continue
to negotiate the Restructuring without needing to file for Spanish
concurso bankruptcy immediately. The protection period ended in
May and June 2014, and the Group has been operating under
continuing forbearance and standstill agreements, including the
Lock-Up Agreement.
Appointment of Advisors and Negotiation of Terms
In March 2013, the Group began to work with both legal and
financial restructuring advisors to develop plans and contingencies
to seek to address its financial difficulties.
In May 2013, the Group and its advisors commenced negotiations with
respect to the terms of a restructuring with an informal ad hoc
committee of Noteholders. The intention of those negotiations was
to reach an agreement on how to reduce the financial pressure on
the Group and ensure it could continue to operate as a going
concern.
Since that time, the Group and its advisors, on the one hand, and
the Ad Hoc Committee and its advisors, on the other hand, have been
engaged in a constant dialogue, with the aim of addressing the
unsustainable debt burden of the Group.
The Group and the Ad Hoc Committee concluded that, for various
reasons, a restructuring proceeding in Spain would be inadequate to
produce a comprehensive resolution and that a UK scheme should be
undertaken. The Group and the Ad Hoc Committee further determined
that Holdco should create a UK subsidiary - Codere UK - to
facilitate the UK scheme process.
On Sept. 23, 2014, Holdco announced that key terms of a
restructuring had been agreed with the Ad Hoc Committee and certain
other Noteholders, as well as with Masampe.
Terms of the Restructuring
On Sept. 23, 2014, holders representing a substantial majority of
the Euro Notes and of the USD Notes entered into a Lock-up
Agreement to implement the restructuring. The Lock-up Agreement
was amended and restated on Aug. 18, 2015. Holders of over 95.1%
in aggregate principal amount of the Notes are currently party to
the Lock-Up Agreement. Pursuant to the terms of the Lock-up
Agreement, the consenting Noteholders have agreed, among other
things:
* to take all reasonable actions to support, facilitate and
implement the Restructuring in a manner consistent with the
terms of the Lock-up Agreement; and
* to take all steps consistent with and reasonably required to
implement the Restructuring.
The obligations of the parties to the Lock-up Agreement will
terminate on Dec. 31, 2015 (subject to extension (i) to March 31,
2016, by approval of Holdco, 75% of consenting Noteholders and each
party providing a backstop commitment, or (ii) to a later date by
approval of Holdco, each consenting Noteholder and each party
providing a backstop commitment).
Commencement of the UK Proceeding
The Debtor applied to the UK Court on Oct. 29, 2015, for an order
directing it to convene a meeting for a single class of creditors
only, namely Noteholders as of the "Record Time" under the Scheme.
The Scheme Creditors are the only creditors whose claims will be
compromised by the Scheme. The purpose of the proposed Scheme
Meeting is to consider and, if appropriate, approve the Scheme.
On Oct. 29, 2015, the UK Court held a hearing and subsequently
issued the Convening Court Order. The UK Court found that it could
exercise jurisdiction over the Scheme (subject to its final
determination at the Sanction Hearing). The Convening Court Order
also (i) confirms that the Scheme Meeting will be held on a time
and date to be advised to Scheme Creditors on no less than 20
Business Days' notice, which date shall be no earlier than Dec. 14,
2015, and no later than Jan. 31, 2016, at the offices of Clifford
Chance LLP, 10 Upper Bank Street, London, E14 5JJ, (ii) confirms
the documents and notices that will be sent to the Scheme
Creditors, and (iii) declared that the Petitioner is authorized to
act as foreign representative in respect of the UK Proceeding,
including in any chapter 15 proceeding.
If the Restructuring is implemented, all outstanding liabilities in
respect of the existing Notes will be treated as follows:
(a) EUR475 million will be cancelled in return for EUR150
million of New Second Lien Notes and EUR325 million of New
Third Lien Notes; and
(b) all remaining and outstanding liabilities under the Notes
will be cancelled in return for roughly 97.78% of the
ordinary shares in Holdco, in each case, to be allocated
pro rata to Noteholders in accordance with their holding
of Notes, subject to the reallocations.
About Codere Finance
Codere Finance (UK) Limited sought Chapter 15 bankruptcy petition
(Bankr. S.D.N.Y. Case No. 15-13017) on Nov. 11, 2015. David
Jimenez Marquez signed the petition as foreign representative. The
Debtor estimated assets in the range of $50,000 to $100,000 and
liabilities of more than $1 billion. Wachtell, Lipton, Rosen &
Katz represents the Debtor as counsel.
CONNEAUT LAKE PARK: Park Restoration Fights for Insurance Proceeds
------------------------------------------------------------------
Keith Gushard at The Meadville Tribune reports that Senior U.S.
District Judge Barbara Rothstein will hear an appeal by Park
Restoration LLC on who gets the $611,000 in insurance proceeds from
a 2013 fire at Conneaut Lake Park's Beach Club night club.
Court documents say that no hearing date has been set for the
appeal.
The Meadville Tribune recalls that Chief Judge Jeffrey Deller of
U.S. Bankruptcy Court for Western Pennsylvania ruled in December
2015 that $478,260.75 of money would go to taxing authorities
Conneaut School District, Crawford County Tax Claim Bureau and
Summit Township past real estate taxes and interest and penalties
owed on that property, with the $132,739.25 remainder going to Park
Restoration, the Beach Club's former operator.
Judge Deller, according to the report, scheduled a hearing for Feb.
9, 2016, on the disbursement, but Park Restoration filed an appeal
of the ruling on whom should receive the money.
The ruling violates the Fifth Amendment of the U.S. Constitution,
which protects against the confiscation of private property, The
Meadville Tribune says, citing John Mizner, Esq., the attorney for
Park Restoration. According to The Meadville Tribune, Park
Restoration claims that its the $611,000 in insurance proceeds is
being taken to pay the debt of another -- back property taxes owed
by the Company.
The appeal has been assigned to the U.S. District Court of Western
Pennsylvania's Alternative Dispute Resolution program, The
Meadville Tribune states.
The Meadville Tribune reports that the Trustees of Conneaut Lake
Park awarded Conneaut Concessions LLC a one-year contract to run
the Company's Hotel Conneaut in 2016 with four one-year extension
options exercisable by the Trustees.
Citing Mark Turner, executive director of Trustees, The Meadville
Tribune says that Conneaut Concessions will pay 12.5% of its gross
revenues to the Trustees the first year with a guaranteed minimum
of $20,000. Mr. Turner said that the Trustees may exercise a
one-year renewal option in each of the following years, with a
minimum payment to the Trustees increasing by $10,000 per year,
topping out at $60,000 if the fourth year option is exerci sed, The
Meadville Tribune relates.
Judge Deller, according to The Meadville Tribune, has ordered
mediation take place to settle the Company's bankruptcy case.
About Conneaut Lake Park
Conneaut Lake Park is a summer amusement resort, located in
Conneaut Lake, Pennsylvania.
Trustees of Conneaut Lake Park, Inc., filed a Chapter 11 bankruptcy
petition (Bankr. W.D. Pa. Case No. 14-11277) in Erie, Pennsylvania,
on Dec. 4, 2014. The case is assigned to Judge Thomas P. Agresti.
The Debtor tapped George T. Snyder, Esq., at Stonecipher Law Firm,
in Pittsburgh, as counsel. The Debtor estimated assets and debt of
$1 million to $10 million.
Trustees of Conneaut Lake Park filed for bankruptcy protection less
than 20 hours before the Crawford County amusement park was
scheduled to go to sheriff's sale for almost $930,000 in back taxes
and related fees.
CORUS ENTERTAINMENT: S&P Puts 'BB+' CCR on CreditWatch Negative
---------------------------------------------------------------
Standard & Poor's Ratings Services said it placed its 'BB+'
long-term corporate credit rating and 'BB+' senior unsecured debt
ratings on Corus Entertainment Inc. on CreditWatch with negative
implications.
"This rating action follows the company's announced agreement to
acquire Shaw Media for C$2.65 billion," said Standard & Poor's
credit analyst Stephen Goltz. "The acquisition is pending
regulatory and minority shareholder approval," Mr. Goltz added.
The CreditWatch placement reflects S&P's opinion that this
transaction will increase Corus' pro forma consolidated adjusted
debt leverage to above 4x, which would be high for the 'BB+' rating
and above S&P's downside threshold.
S&P believes this acquisition should benefit Corus' market position
and improv
CTI BIOPHARMA: Appoints Matthew Perry as Director
-------------------------------------------------
Matthew D. Perry was appointed to the Board of Directors of CTI
BioPharma Corp. on Jan. 11, 2016.
Mr. Perry was granted 84,034 Restricted Stock Units by the Company
as a member of its Board. Each restricted stock unit represents
the right to receive, at settlement, one Share of common stock.
These restricted stock units are scheduled to vest on the first to
occur of (i) the date that is twelve months after the date of
grant, (ii) the first annual meeting of the Issuer's shareholders
in 2017 at which one or more members of the Issuer's Board of
Directors are to be elected, or (iii) immediately prior to the
occurrence of a Change of Control (as such term is defined in the
Issuer's 2015 Equity Incentive Plan), subject to the Reporting
Person's continued service through such date or event. Prior to
vesting, there are no voting rights associated with the Restricted
Stock Units.
About CTI BioPharma
CTI BioPharma Corp. (NASDAQ and MTA: CTIC) --
http://www.ctibiopharma.com/-- formerly known as Cell
Therapeutics, Inc., is a biopharmaceutical company focused on
the acquisition, development and commercialization of novel
targeted therapies covering a spectrum of blood-related cancers
that offer a unique benefit to patients and healthcare providers.
The Company has a commercial presence in Europe and a late-stage
development pipeline, including pacritinib, CTI's lead product
candidate that is currently being studied in a Phase 3 program for
the treatment of patients with myelofibrosis. CTI BioPharma is
headquartered in Seattle, Washington, with offices in London and
Milan under the name CTI Life Sciences Limited.
CTI Biopharma reported a net loss attributable to common
shareholders of $96 million in 2014, compared with a net loss
attributable to common shareholders of $49.6 million in 2013.
As of Sept. 30, 2015, the Company had $63.13 million in total
assets, $90.64 million in total liabilities and a $27.51 million
total shareholders' deficit.
CTI BIOPHARMA: Appoints Matthew Perry to Board of Directors
-----------------------------------------------------------
CTI BioPharma Corp. announced that Matthew Perry, president of BVF
Partners L.P. (BVF Partners) and CTI BioPharma's largest
shareholder, has been appointed to the Board of Directors of CTI
BioPharma.
"We are pleased to welcome Matthew Perry from BVF Partners, our
largest shareholder, onto our Board at this exciting stage of our
company's evolution," commented James A. Bianco, M.D., CTI
BioPharma's president and chief executive officer. "We plan for a
very productive 2016 as we augment our capabilities and expand our
commercial presence to the U.S. with the potential launch of
pacritinib."
"We see substantial untapped value in CTI BioPharma and look
forward to helping build it into a world class oncology company,"
said Matthew Perry. "We are excited to support CTI BioPharma while
it seeks to move pacritinib forward in myelofibrosis and leverage
pacritinib's kinome profile to potentially branch into other
blood-related malignancies. We believe that the Company's pipeline
also contains high-quality programs like tosedostat, which holds
promise for significant value creation for the Company in 2016 and
beyond."
Mr. Perry is the president of BVF Partners and the co-portfolio
manager for the underlying funds managed by the firm. BVF Partners
is a private investment partnership that manages over $1 billion
and focuses on small-cap, value oriented investment opportunities.
Mr. Perry joined BVF Partners in December 1996 and has been a
successful lead investor in dozens of transactions and has
positively influenced corporate direction for over twenty years.
Mr. Perry is also a co-founder and director of Nordic Biotech
Advisors ApS, a venture capital firm based in Copenhagen, Denmark.
He holds a B.S. degree from the Biology Department at the College
of William and Mary.
About CTI BioPharma
CTI BioPharma Corp. (NASDAQ and MTA: CTIC) --
http://www.ctibiopharma.com/-- formerly known as Cell
Therapeutics, Inc., is a biopharmaceutical company focused on
the acquisition, development and commercialization of novel
targeted therapies covering a spectrum of blood-related cancers
that offer a unique benefit to patients and healthcare providers.
The Company has a commercial presence in Europe and a late-stage
development pipeline, including pacritinib, CTI's lead product
candidate that is currently being studied in a Phase 3 program for
the treatment of patients with myelofibrosis. CTI BioPharma is
headquartered in Seattle, Washington, with offices in London and
Milan under the name CTI Life Sciences Limited.
CTI Biopharma reported a net loss attributable to common
shareholders of $96 million in 2014, compared with a net loss
attributable to common shareholders of $49.6 million in 2013.
As of Sept. 30, 2015, the Company had $63.13 million in total
assets, $90.64 million in total liabilities and a $27.51 million
total shareholders' deficit.
CTI BIOPHARMA: Mark Lampert Reports 15.9% Stake as of Jan. 11
-------------------------------------------------------------
In an amended Schedule 13D filed with the Securities and Exchange
Commission, Mark N. Lampert disclosed that as of Jan. 11, 2016, he
beneficially owns 44,796,940 shares of common stock of CTI
BioPharma Corp., representing 15.9 percent of the shares
outstanding. A copy of the regulatory filing is available for free
at http://is.gd/mTAjLk
About CTI BioPharma
CTI BioPharma Corp. (NASDAQ and MTA: CTIC) --
http://www.ctibiopharma.com/-- formerly known as Cell
Therapeutics, Inc., is a biopharmaceutical company focused on
the acquisition, development and commercialization of novel
targeted therapies covering a spectrum of blood-related cancers
that offer a unique benefit to patients and healthcare providers.
The Company has a commercial presence in Europe and a late-stage
development pipeline, including pacritinib, CTI's lead product
candidate that is currently being studied in a Phase 3 program for
the treatment of patients with myelofibrosis. CTI BioPharma is
headquartered in Seattle, Washington, with offices in London and
Milan under the name CTI Life Sciences Limited.
CTI Biopharma reported a net loss attributable to common
shareholders of $96 million in 2014, compared with a net loss
attributable to common shareholders of $49.6 million in 2013.
As of Sept. 30, 2015, the Company had $63.1 million in total
assets, $90.6 million in total liabilities and a $27.5 million
total shareholders' deficit.
DAVIS HEALTH: Moody's Affirms Caa3 Rating, Outlook Remains Stable
-----------------------------------------------------------------
Moody's Investors Service affirms Davis Health System's (WV) (DHS)
Caa3. The rating outlook remains negative. The rating action
applies to approximately $11 million of rated debt.
The affirmation of the Caa3 reflects recent evidence of operational
traction, which has translated into healthier margins. However, DHS
remains severely challenged by its weak liquidity position,
relative to both its size and leverage, its small absolute size and
lack of financial flexibility to meet unexpected challenges.
Already thin headroom to a liquidity covenant under a bank
agreement narrows, with a greater covenant requirement, beginning
with the quarter ended 12/31/2015 .
Rating Outlook
The negative rating outlook is based on our expectation that
potential for violation of now stricter cash covenant poses risk of
acceleration, despite improved operating cash-flow, over the near
term. Should a covenant be violated, a lower rating may be
warranted based on estimated recovery of the value of the bonds at
the time.
Factors that Could Lead to an Upgrade
Substantial growth in absolute liquidity resulting
in ample headroom to covenants
Sustained operating performance and cash flow generation
Material enterprise growth
Stability of volumes
Factors that Could Lead to a Downgrade
Decline in absolute or relative liquidity metrics
Covenant violation
Debt restructuring or acceleration
Inability to sustain current operating performance
Payment default or bankruptcy filing
Legal Security
The bonds are secured by a joint and several pledge (gross
revenues) of the Obligated Group which include Davis Memorial
Hospital and Broaddus Hospital. This analysis incorporates the
financial performance of Davis Health System. Under the master
trust indenture, the obligated group is required to make monthly
principal and interest payments to the bond trustee, maintain a
debt service reserve fund, and 1.1 times debt service coverage
ratio at fiscal year-end.
Use of Proceeds
Not Applicable.
Obligor Profile
The main campus of DHS is located in Elkins, WV approximately 70
miles south of Morgantown and 140 miles northeast of the state
capital of Charleston. Davis Medical Center, the System's primary
acute-care hospital, provides inpatient, outpatient and emergency
services to the surrounding communities. The System also owns
Broaddus Hospital, a critical access hospital located in Philippi,
which provides acute medical, outpatient, and long term care
services.
DAYBREAK OIL: Reports $862,000 Net Loss for Third Quarter
---------------------------------------------------------
Daybreak Oil and Gas, Inc. filed with the Securities and Exchange
Commission its quarterly report on Form 10-Q disclosing a net loss
attributable to common shareholders of $862,075 on $276,332 of oil
and natural gas sales for the three months ended Nov. 30, 2015,
compared to a net loss of attributable to common shareholders of
$167,516 on $663,650 of oil and natural gas sales for the same
period in 2014.
For the nine months ended Nov. 30, 2015, the Company reported a net
loss available to common shareholders of $1.98 million on $1.08
million of oil and natural gas sales compared to a net loss
available to common shareholders of $378,000 on $2.51 million of
oil and natural gas sales for the nine months ended Nov. 30, 2014.
As of Nov. 30, 2015, the Company had $10.9 million in total assets,
$17.9 million in total liabilities and a $7.06 million total
stockholders' deficit.
The Company has incurred net losses since entering the oil and
natural gas exploration industry and as of Nov. 30, 2015, has an
accumulated deficit of $30.1 million and a working capital deficit
of $5.85 million which raises substantial doubt about the Company's
ability to continue as a going concern.
A full-text copy of the Form 10-Q is available for free at:
http://is.gd/evHePO
About Daybreak Oil
Daybreak Oil and Gas, Inc., is an independent oil and natural gas
exploration, development and production company. The Company is
headquartered in Spokane, Washington and has an operations office
in Friendswood, Texas. The Company's common stock is quoted on
the OTC Bulletin Board market under the symbol DBRM.OB. Daybreak
has over 20,000 acres under lease in the San Joaquin Valley of
California.
Daybreak Oil reported a net loss available to common shareholders
of $866,000 on $3.08 million of oil and natural gas sales for the
year ended Feb. 28, 2015, compared to a net loss available to
common shareholders of $1.54 million on $1.8 million of oil and
natural gas sales for the year ended Feb. 28, 2014.
MaloneBailey, LLP, in Houston, Texas, issued a "going concern"
qualification on the consolidated financial statements for the year
ended Feb. 28, 2015, citing that the Company suffered losses from
operations and has negative operating cash flows, which raises
substantial doubt about its ability to continue as a going concern.
DOMARK INTERNATIONAL: Posts $722,000 Net Income for 2nd Quarter
---------------------------------------------------------------
Domark International, Inc., filed with the Securities and Exchange
Commission its quarterly report on Form 10-Q disclosing net income
of $722,000 on $0 of sales for the three months ended Nov. 30,
2015, compared with a net loss of $757,000 on $0 of sales for the
same period in 2014.
For the six months ended Nov. 30, 2015, the Company reported a net
loss of $669,000 on $0 of sales compared to a net loss of $1.41
million on $0 of sales for the six months ended Nov. 30, 2014.
As of Nov. 30, 2015, the Company had $1.24 million in total assets,
$3.66 million in total liabilities, all current, and a $2.42
million total stockholders' deficit.
A full-text copy of the Form 10-Q is available for free at:
http://is.gd/hbgvu9
About Domark International
Based in Lake Mary, Florida, DoMark International, Inc., was
incorporated under the laws of the State of Nevada on March 30,
2006. The Company was formed to engage in the acquisition and
refinishing of aged furniture using exotic materials and then
reselling it through interior decorators, high-end consignment
shops and online sales. The Company abandoned its original
business of exotic furniture sales in May of 2008 and pursued the
acquisition of entities to best bring value to the company and its
shareholders.
For the nine months ended Feb. 28, 2015, the Company reported a net
loss of $1.86 million on $0 of sales compared to a net loss of
$2.34 million on $0 of sales for the same period a year ago.
E Z MAILING: Files for Chapter 11 Bankruptcy Amid Default
---------------------------------------------------------
E Z Mailing Services Inc. and United Business Freight Forwarders,
LLC, sought Chapter 11 bankruptcy protection after their
relationship with PNC Bank, National Association deteriorated.
PNC Bank, the Debtors' primary secured lender, had declared default
on all the PNC Loans and demanded immediate payment of $4.2 million
from the Debtors on account of the Loans as a result of an incident
that occurred on Nov. 18, 2015, wherein the Debtors overdrew a PNC
Account by $1.2 million.
The transportation logistics company whose customers include
Macy's, Walmart, JC Penny and Forever 21, said the Chapter 11
filing was necessary in order to continue to receive and utilize
receivables from its customers. PNC Bank had sent a letter to
Forever 21, causing Forever 21 to freeze payment to the Debtors.
The Debtors said they intend to reorganize by refinancing the PNC
Bank debt or by paying to PNC Bank the indubitable equivalent of
its secured claim.
Declining Revenues
Ajay Aggarwal, president of E Z Mailing, disclosed that 40% of the
Debtors' annual revenues come in the fourth quarter, primarily due
to the holiday retail season. In the latter half of 2014 and
through 2015, to finance the growth, the Debtors added $12 million
in trucks and hubs. However, the 2015 holiday season fell far
short of expectations.
"Although the retail industry in general had a satisfactory season,
the balance between in-store retail sales and online sales tipped
dramatically towards online sales and direct consumer
delivery. Since the Debtors' businesses serve primarily in-store
retail sales, they suffered accordingly," Mr. Aggarwal said.
First Day Motions
Contemporaneously with the petition, the Debtors filed several
motions seeking, among other things, authority to use cash
collateral, pay employee wages, pay critical vendor claims, and
prohibit utility providers from discontinuing services.
About E Z Mailing
E Z Mailing Services Inc. and United Business Freight Forwarders
filed Chapter 11 bankruptcy petitions (Bankr. D.N.J. Case Nos.
16-10615 and 16-10616, respectively) on Jan. 13, 2016. Ajay
Aggarwal signed the petition as president. The Debtors estimated
both assets and liabilities in the range of $10 million to $50
million. Porzio, Bromberg & Newman, PC represents the Debtors as
counsel. Judge Stacey L. Meisel presides over the cases.
E Z MAILING: Hires Porzio Bromberg as Bankruptcy Counsel
--------------------------------------------------------
EZ Mailing Services Inc., et al., seek permission from the
Bankruptcy Court to employ Porzio, Bromberg & Newman, P.C., as
their bankruptcy counsel. The firm is expected to:
(a) advise the Debtors of their rights, powers, and duties as
debtors-in-possession in continuing to operate and manage
its assets;
(b) advise the Debtors concerning, and assist in the
negotiation of and documentation of post-petition
financing, the use of cash collateral, debt restructuring
and related transactions;
(c) review the nature and validity of agreements relating to
the Debtors' business and property and advise the Debtors
in connection therewith;
(d) review the nature and validity of liens, if any, asserted
against the Debtors and advise as to the enforceability of
those liens;
(e) advise the Debtors concerning the actions the Debtors
might take with respect to property of the estate,
including, with respect to a Section 363 sale of
substantially all of the Debtors' assets;
(f) prepare on the Debtors' behalf all necessary and
appropriate applications, motions, pleadings, orders,
notices, petitions, schedules, and other documents, and
review all financial and other reports to be filed in the
Debtors' Chapter 11 cases;
(g) advise the Debtors concerning, and prepare responses to,
applications, motions, pleadings, notices, and other
papers which may be filed in the Debtors' Chapter 11
cases;
(h) counsel the Debtors in connection with formulation,
negotiation and promulgation of a plan of
reorganization/liquidation and related documents; and
(i) perform all other legal services for and on behalf of the
Debtors which may be necessary or appropriate in the
administration of its Chapter 11 case and the Debtors'
business and property, including advising and assisting
the Debtors with respect to debt restructuring, asset
dispositions, and litigation matters.
The present hourly rates for the attorneys who are expected to be
most actively involved with these cases ranges from $365 to $765.
The present hourly rate for the paraprofessionals who are expected
to be most actively involved with these cases is $220.
The Debtors have agreed to reimburse Porzio for its necessary and
reasonable out-of-pocket expenses.
Porzio was paid $60,000 for prepetition services to the Debtors.
The Debtors have agreed to pay Porzio a retainer of $25,000 to be
applied against the final invoice owed by them to Porzio for
post-petition services.
Porzio represents it does not hold or represent any interest
adverse to the Debtors, their creditors or the Debtors' estate, and
is a disinterested person.
About E Z Mailing
E Z Mailing Services Inc. and United Business Freight Forwarders,
transportation logistics companies, filed Chapter 11 bankruptcy
petitions (Bankr. D.N.J. Case Nos. 16-10615 and 16-10616,
respectively) on Jan. 13, 2016. Ajay Aggarwal, the president,
signed the petition. The Debtors estimated both assets and
liabilities in the range of $10 million to $50 million. Porzio,
Bromberg & Newman, PC represents the Debtors as counsel. Judge
Stacey L. Meisel presides over the cases.
E Z MAILING: Proposes to Pay Critical Vendor Claims
---------------------------------------------------
E Z Mailing Services Inc. and United Business Freight Forwarders
seek the Bankruptcy Court's authority to pay certain prepetition
claims of critical vendors which support their ability to carry
out their day-to-day operations.
According to the Debtors, notwithstanding their capacity to handle
a multitude of shipping, delivery and courier for their clients
with their own trucks and equipment, they also utilize the services
of other trucking companies for specific geographical locations and
for overflow work, when customer needs must be fulfilled but the
Debtors' equipment and employees are 100% utilized.
The Debtors have three key trucking vendors that assist them with
providing services to their customers: (i) Kroger Logistics Inc.;
(ii) Precise Logistics Inc.; and (iii) Universal Dynasty. Each of
these vendors have claims for providing essential services that
were rendered to, or on behalf of, the Debtors before the Petition
Date.
If the Critical Vendor Motion is not granted, the Debtors believe
that the Critical Vendors will stop providing services to them on
customary trade terms, effectively reducing the amount of trade
credit available to the Debtors on a post-petition basis. The
Debtors maintain that payment of the Critical Vendor Claims will
ensure that they are able to obtain necessary services, maintain
their high levels of customer satisfaction and operate effectively
in Chapter 11 while they seek to reorganize.
About E Z Mailing
E Z Mailing Services Inc. and United Business Freight Forwarders,
transportation logistics companies, filed Chapter 11 bankruptcy
petitions (Bankr. D.N.J. Case Nos. 16-10615 and 16-10616,
respectively) on Jan. 13, 2016. Ajay Aggarwal, the president,
signed the petition. The Debtors estimated both assets and
liabilities in the range of $10 million to $50 million. Porzio,
Bromberg & Newman, PC represents the Debtors as counsel. Judge
Stacey L. Meisel presides over the cases.
E Z MAILING: Seeks 21-Day Extension of Deadline to File Schedules
-----------------------------------------------------------------
E Z Mailing Services Inc. and United Business Freight Forwarders
ask the Bankruptcy Court to extend by 21 days the time within which
they must file their schedules of assets and liabilities and
statements of financial affairs.
"This case was filed under the gun on an emergent basis because of
PNC Bank's insistence on attempting to seize the Debtors' major
receivables. The Debtors' professionals have not had a fulsome
opportunity to review and analyze all information and documents
necessary to complete the Schedules," said Ajay Aggarwal, president
of E Z Mailing.
Mr. Aggarwal continued, "[G]iven the numerous tasks to which the
Debtors and their professionals must attend to facilitate a smooth
transition into Chapter 11, the Debtors and their professionals
are concerned that the Schedules may not be completed by the
deadline established by Bankruptcy Rule 1007(c)."
About E Z Mailing
E Z Mailing Services Inc. and United Business Freight Forwarders,
transportation logistics companies, filed Chapter 11 bankruptcy
petitions (Bankr. D.N.J. Case Nos. 16-10615 and 16-10616,
respectively) on Jan. 13, 2016. Ajay Aggarwal, the president,
signed the petition. The Debtors estimated both assets and
liabilities in the range of $10 million to $50 million. Porzio,
Bromberg & Newman, PC represents the Debtors as counsel. Judge
Stacey L. Meisel presides over the cases.
E Z MAILING: Seeks Joint Administration of Cases
------------------------------------------------
E Z Mailing Services Inc. and United Business Freight Forwarders
ask the Bankruptcy Court to jointly administer their Chapter 11
cases for procedural purposes. Specifically, the Debtors request
that the Court maintain one file and one docket for the
jointly-administered cases. The Debtors propose to designate the
Chapter 11 case of E Z Mailing Services Inc., as the main
bankruptcy case.
"Joint administration will obviate the need for duplicative
notices, motions, and orders, and thereby save considerable time
and expense for the Debtors and their estates," the Debtors said in
papers filed with the Court.
About E Z Mailing
E Z Mailing Services Inc. and United Business Freight Forwarders,
transportation logistics companies, filed Chapter 11 bankruptcy
petitions (Bankr. D. N.J. Case Nos. 16-10615 and 16-10616,
respectively) on Jan. 13, 2016. Ajay Aggarwal signed the petition
as president. The Debtors estimated both assets and liabilities in
the range of $10 million to $50 million. Porzio, Bromberg &
Newman, PC represents the Debtors as counsel. Judge Stacey L.
Meisel presides over the cases.
E Z MAILING: Wants to Use PNC Bank's Cash Collateral
----------------------------------------------------
E Z Mailing Services Inc. and United Business Freight Forwarders
seek authority from the Bankruptcy Court to use cash collateral of
PNC Bank, National Association, and grant PNC Bank adequate
protection in the form of replacement liens pursuant to Sections
361 and 363 of the Bankruptcy Code.
"Without the immediate use of cash collateral, the Debtors will be
unable to pay ordinary and necessary business expenses including,
but not limited to, payroll and related obligations, utilities,
amounts owed to vendors and other suppliers of goods and services,
insurance, and other costs of administering the estates. The use
of cash collateral is therefore critical to preserving the value of
the Debtors' estates for all parties-in-interest," said Ajay
Aggarwal, president of E Z Mailing.
About E Z Mailing
E Z Mailing Services Inc. and United Business Freight Forwarders,
transportation logistics companies, filed Chapter 11 bankruptcy
petitions (Bankr. D.N.J. Case Nos. 16-10615 and 16-10616,
respectively) on Jan. 13, 2016. Ajay Aggarwal, the president,
signed the petition. The Debtors estimated both assets and
liabilities in the range of $10 million to $50 million. Porzio,
Bromberg & Newman, PC represents the Debtors as counsel. Judge
Stacey L. Meisel presides over the cases.
ESSAR STEEL: Court Issues Joint Administration Order
----------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware directed the
joint administration of Chapter 11 cases of Essar Steel Algoma Inc.
pursuant to Section 1015(b) of the Bankruptcy Code. The Chapter 15
cases are consolidated for procedural purposes only and will be
jointly administered by the Court under Case No. 15-12271.
About Essar Steel
Headquartered in Sault Ste. Marie, Ontario, Canada, ESA is an
integrated steel producer. Approximately 80% to 85% of ESA's sales
are sheet products with plate products accounting for the balance.
For the 12 months ending December 31, 2013, ESA generated revenues
of C$1.8 billion.
Robert J. Sandoval filed a petition under Chapter 15 of the U.S.
Bankruptcy Code for Essar Steel Algoma Inc., and its debtor
affiliates on July 16, 2014, following the companies' initiation of
a reorganization under Canada's Companies' Creditors Arrangement
Act. The lead case is Essar Steel Algoma Inc., Case No. 14-11730
(D. Del.). Essar Steel operates one of Canada's largest integrated
steel manufacturing facilities. The Chapter 15 case is assigned to
Judge Brendan Linehan Shannon. The Chapter 15 Petitioner's Counsel
is Daniel J. DeFranceschi, Esq., and Amanda R. Steele, Esq., at
Richards, Layton & Finger, P.A., in Wilmington, Delaware.
EVRAZ NORTH AMERICA: Moody's Cuts Corporate Family Rating to B3
---------------------------------------------------------------
Moody's Investors Service downgraded Evraz North America PLC's
(ENA) Corporate Family Rating (CFR) and Probability of Default
Rating to B3 and B3-PD from Ba3 and Ba3-PD respectively. At the
same time Moody's downgraded Evraz Inc. NA Canada's (EICA) senior
secured notes to B3 from Ba3. The notes are guaranteed by EICA's
parent - ENA - and by Evraz Inc. NA (EINA) and other subsidiaries
of the parent and secured by a first lien on EICA and the
guarantors' fixed and intangible assets and a second lien on the
assets securing the asset-based credit facility (ABL - principally
accounts receivable and inventory). The outlook is negative. This
concludes the review for downgrade initiated on October 13, 2015.
ENA is a wholly owned subsidiary of Evraz Group S.A. (Ba3 CFR).
The downgrade reflects the weak performance of ENA resulting from
the material drop in oil prices in 2015, which has impacted the
company's OCTG business (oil country tubular goods), challenging
conditions in the US steel industry as a result of high imports,
moderate demand and steady price degradation over the course of
2015. These challenged conditions are not expected to evidence
improvement in 2016. As a consequence, ENA's credit metrics have
deteriorated as evidenced by its weak EBIT/interest and Debt/EBITDA
ratios for the twelve months ended September 30, 2015. Given the
further downward movement in steel prices and the challenging
conditions facing the US steel industry, particularly for
flat-rolled and tubular products, ENA's debt protection metrics are
expected to weaken further for the fiscal year 2015 and remain
stretched in 2016 with the time horizon for recovery anticipated to
be extended. We anticipated that leverage, as measured by the
debt/EBITDA ratio will be above 7x, excluding the parent company
loans, which are subordinated to the notes issued by EICA.
ENA and the US steel industry continue to struggle with challenging
market conditions with 2015 evidencing weaker capacity utilization
rates and meaningful price deterioration. While key input costs for
scrap, iron ore and metallurgical coal have also declined
significantly, this has not been sufficient to help earnings given
the degree of price degradation and weaker capacity utilization
rates relative to fixed cost absorption. Additionally, historically
high import levels, weak demand in certain end markets such as
general industrial, and the collapse of the OCTG market has
resulted in weak earnings performance. Although the company
continues to have a good contracted position in sales to the rail
industry and large diameter pipe segment was not as negatively
impacted as the OCTG market, this is not sufficient to compensate
for the weakness in other key markets.
Downgrades:
Issuer: Evraz Inc. NA Canada
-- Backed Senior Secured Regular Bond/Debenture, Downgraded to B3
(LGD3) from Ba3 (LGD3)
Outlook Actions:
Issuer: Evraz Inc. NA Canada
-- Outlook, Changed To Negative From Rating Under Review
-- Issuer: Evraz North America PLC
-- Corporate Family Rating, Downgraded to B3 from Ba3
-- Probability of Default Rating, Downgraded to B3-PD from Ba3-PD
Outlook Actions:
Issuer: Evraz North America PLC
-- Outlook, Changed To Negative From Rating Under Review
RATINGS RATIONALE
ENA's B3 CFR considers the company's solid niche market position as
an electric arc furnace steel producer and producer of engineered
steel products selling into the rail, OCTG and general industrial
markets through its long, tubular and flat products segments. The
operating locations provide good access to markets in Western
Canada and the Western US, which in turn gives access to rail and
OCTG steel and pipe requirements in these regions. The rating also
considers volatility inherent in the steel industry, the ongoing
import challenges, and the reliance on increasing rail
infrastructure demand and oil and gas transmission and development
demand to achieve volume growth objectives and higher price
realizations and consequently improved metrics. The rating also
acknowledges the pending trade cases for coated steel, cold rolled
steel and hot rolled steel, the outcome of which will have an
impact on industry performance.
The CFR has a one notch uplift reflecting the strategic importance
of ENA to its parent. ENA is deemed a material subsidiary in the
documentation for several series of the parent group's senior notes
as well as other debt facilities containing cross default language
to payment defaults at material subsidiaries.
ENA's adequate liquidity is supported by its operating cash flow
and a $540 million ABL credit facility expiring in May 2019. Given
the continued drop in steel prices and realized prices at ENA, we
expect that the borrowing base availability is less than the
facility commitment size. We expect the company to maintain
acceptable availability through its seasonal requirements.
The negative outlook reflects the challenges facing ENA as steel
industry conditions remain difficult and capacity utilization rates
low. In addition, OCTG, a key market for the company, is not
expected to improve over a long time frame and risk remains to the
downside. The outlook captures the potential for industry
conditions to weaken further. The outlook also considers the
uncertainty with respect to the ultimate resolution of the pending
trade cases.
Given ENA's metrics and the anticipated slow improvement, an
upgrade is unlikely in the next twelve to eighteen months. However,
should leverage, as measured by the debt/EBITDA ratio improve to
and be sustainable at 5x, the EBIT/interest ratio strengthen to and
be sustained at or above 2x and (operating cash flow minus
dividends)/debt be at least 15%, the ratings could be upgraded.
The ratings could be further downgraded if performance in 2016 does
not show improving trends such that the EBIT/interest ratio remains
less than 1.5x, and leverage remains above 7x. Ratings could also
be downgraded should the company's liquidity position deteriorate
materially due to weak operating performance and further cash burn
than anticipated or ENA not continue to be defined as a material
subsidiary within certain of the parent company's documentation.
Evraz North America plc ("ENA") is a limited liability company
organized under the laws of England and Wales and operates through
two principal subsidiaries: Evraz Inc. NA ("EINA") and Evraz Inc.
NA Canada ("EICA)". The company's business is structured along its
product lines, which are Flat Products, Tubular Products and Long
Products. For the twelve months ended December 31, 2014 the
consolidated entities had revenues of roughly $1.5 billion,
excluding freight, which is mostly an offset to cost of goods sold.
ENA is a wholly owned subsidiary of Evraz Group S.A.
EINA, a Delaware corporation headquartered in Chicago, Illinois, is
a steelmaking company with operations in the U.S. and Canada. At
its long products division located in Pueblo, Colorado, it operates
steelmaking and finishing facilities, which include the production
of railroad rail, wire rod and seamless pipe. The long products
division also operates one scrap processing facility. At its
Portland, Oregon site, EINA operates a plate mill that re-rolls
slab to produce discrete and coiled steel plate, and a large
diameter spiral pipe mill to produce API large diameter line pipe.
In Camrose, Alberta, EINA operates a straight seam large diameter
pipe mill and an ERW pipe mill for the production of API line pipe.
EINA is an important participant in the U.S. rail market,
particularly in the Western US and Canada.
EICA is a Canadian company incorporated in Ontario under the
Canadian Business Corporations Act. Through its flat and tubular
divisions, it operates steelmaking facilities, finishing
facilities, and scrap processing facilities. In Regina,
Saskatchewan, EICA operates a plate mill that produces discrete and
coiled steel plate and pipe finishing facilities where it produces
large diameter spiral pipe and electric resistance welded line pipe
and oil country tubular goods (OCTG). EICA also operates electric
resistance welded OCTG mills in Calgary and Red Deer Alberta.
Evraz Group S.A. (Ba3 CFR) is a leading global vertically
integrated steel company headquartered in Luxembourg with assets in
Russia, the Ukraine, Europe, North America and South Africa.
Through its mining division, the company also operates iron ore and
coal mining complexes. The company produced 15.2 million metric
tons of steel in 2014 and generated revenues of $13 billion.
EXGEN TEXAS: S&P Lowers Rating to 'B+', Outlook Stable
------------------------------------------------------
Standard & Poor's Ratings Services lowered its project rating on
ExGen Texas Power LLC to 'B+' from 'BB-'. The outlook is stable.
The recovery rating is unchanged at '2', indicating expectations
for significant (70% to 90%; lower half of the range) recovery of
principal in case of default.
"The downgrade reflects an ongoing lower power pricing environment
in ERCOT that should continue through much of the next few years,"
said Standard & Poor's credit analyst Michael Ferguson. This has
come about in the last year and a half based on lower natural gas
prices, sluggish growth in demand (based on a weaker oil and gas
sector in Texas), and greater-than-expected renewable generation,
which has cut into peak demand and weakened market heat rates.
Additionally, S&P notes that there was a partial outage at the Wolf
Hollow facility during the fourth quarter of 2015; while this is
not an immediate issue, S&P will continue to monitor this to
determine whether or not this could persist and result in an
increase in operating costs or lower availability assumptions.
The stable outlook on ExGen reflects S&P's expectations of moderate
refinancing risk at maturity due to improving, albeit volatile,
power market conditions in ERCOT. While the portfolio is
thoroughly hedged through much of the next few years, hedges have
not been renewed due to weaker power prices in recent years,
resulting in a forecasted minimum DSCR of about 1.4x in 2019.
S&P would consider a downgrade if it expected debt service to fall
substantially below 1.5x persistently, or if refinancing risk
increased markedly. Such a scenario would most likely happen due
to a persistently consistently weaker ERCOT market after current
hedges expire or unanticipated operational difficulties.
A positive ratings action is unlikely in the near term, but could
occur if the project mitigates its exposure to merchant market risk
by entering into new hedging agreements that increase cash flow
predictability through the end of the debt tenor, or if S&P
develops a higher level of confidence that energy prices will rise
and stabilize for an extended period in ERCOT. As such, S&P could
consider an upgrade if it expected debt service coverage to rise
above about 3x and persist at that level.
FINJAN HOLDINGS: Reports Nearly $5-Mil. 2015 Licensing Revenue
--------------------------------------------------------------
Finjan Holdings, Inc., announced that it closed 2015 having signed
three licensees approaching $5 million in revenue compared with one
licensee in the prior year. Importantly, licensing momentum
accelerated in the fourth quarter and allowed Finjan to enter 2016
with an additional $5 million in licensing fees under contract to
be received in 2016.
Financial Highlights
* Ended 2015 with approximately $5 million in licensing revenue
and $6 million in cash
* Closed the fourth quarter of 2015 with nearly $4 million in
licensing revenue
* Entered 2016 with approximately $5 million in license fees
under contract to be received in 2016
"2015 was a pivotal year for Finjan as we gained meaningful
traction in our licensing program while diversifying our business
with the introduction of mobile security and cybersecurity advisory
services," said Phil Hartstein, president and CEO of Finjan. "We
continued to demonstrate the value of our Intellectual Property
with our trial win and Judgment against Blue Coat totaling nearly
$40M while successfully defending our patent portfolio."
2016 Catalysts
* Strong licensing pipeline
* Proofpoint trial scheduled for 2Q 2016
* Sophos trial scheduled for 3Q 2016
"The reemergence of Finjan as a pure play cybersecurity technology
company, with several new businesses in emerging and underserved
markets, provides a more sustainable platform for future growth,"
continued Hartstein. "We are managing the company in a prudent
manner while building upon Finjan's 20-year history of innovation
in the cybersecurity sector to create long-term value for our
licensees, shareholders and prospective investors."
About Finjan
Finjan, formerly known as Converted Organics, is a leading online
security and technology company which owns a portfolio of patents,
related to software that proactively detects malicious code and
thereby protects end-users from identity and data theft, spyware,
malware, phishing, trojans and other online threats. Founded in
1997, Finjan is one of the first companies to develop and patent
technology and software that is capable of detecting previously
unknown and emerging threats on a real-time, behavior-based basis,
in contrast to signature-based methods of intercepting only known
threats to computers, which were previously standard in the online
security industry.
Finjan reported a net loss of $10.47 million in 2014 following a
net loss of $6.07 million in 2013.
As of Sept. 30, 2015, the Company had $9.93 million in total
assets, $2.66 million in total liabilities and $7.27 million in
total stockholders' equity.
FOUR OAKS: Completes Refinancing of Subordinated Debt
-----------------------------------------------------
Four Oaks Fincorp, Inc., the holding company for Four Oaks Bank &
Trust Company, announced that the Company has completed a private
placement offering of $11.5 million in aggregate principal amount
of subordinated promissory notes due Nov. 30, 2025, to certain
accredited investors. The Company is obligated to pay interest on
the Notes at an annualized rate of 6.25% payable in quarterly
installments. The Company may prepay the Notes at any time after
Nov. 30, 2020, subject to compliance with applicable law. The
proceeds of the Offering were used to prepay the Company's
outstanding subordinated promissory notes issued in 2009 that had
an annualized rate of 8.5%.
"With the completion of this refinancing, the Company has secured
more attractively-priced long-term capital for the Bank while
retaining a core group of the same note investors from our 2009
offering," said David Rupp, president, and chief executive officer
of the Company and the Bank. "We are very pleased with the results
of this refinancing and the support received from our note
investors," Rupp added.
About Four Oaks
Four Oaks Fincorp, Inc., through its wholly-owned subsidiary, Four
Oaks Bank & Trust Company, offers a broad range of financial
services through its sixteen offices in Four Oaks, Clayton,
Smithfield, Garner, Benson, Fuquay-Varina, Wallace, Holly Springs,
Harrells, Zebulon, Dunn, Raleigh (LPO), Apex (LPO) and Southern
Pines (LPO), North Carolina. Four Oaks Fincorp, Inc. trades
through its market makers under the symbol of FOFN.
Four Oaks Fincorp reported a net loss of $4.18 million in 2014, a
net loss of $350,000 in 2013, a net loss of $6.96 million in 2012
and a net loss of $9.09 million in 2011.
As of Sept. 30, 2015, the Company had $714.50 million in total
assets, $654.28 million in total liabilities and $60.21 million in
total shareholders' equity.
FRANCHISE HOLDINGS: Raises Going Concern Doubt Amid Losses
----------------------------------------------------------
Franchise Holdings International, Inc., disclosed conditions that
raise substantial doubt about its ability to continue as a going
concern, according to Steven Rossi, chairman of the board, chief
executive officer, chief financial officer and principal accounting
officer of the company, in a November 20, 2015 regulatory filing
with the U.S. Securities and Exchange Commission.
The company posted a net loss for the period of $1,228,518 for the
three months ended Sept. 30, 2015, as compared with a net loss for
the period of $7,873 for the three months ended Sept. 30, 2014.
During the nine month period ended Sept. 30, 2015, the company
incurred a net loss of $2,076,378, and as of that date, the
company's deficit was $2,640,556. "While the company has
demonstrated the ability to generate revenue, there are no
assurances that it will be able to achieve level of revenues
adequate to generate sufficient cash flow from operations or obtain
additional financing through private placements, public offerings
and/or bank financing necessary to support our working capital
requirements. To the extent that funds generated from any private
placements, public offerings and/or bank financing are
insufficient, we will have to raise additional working capital. No
assurance can be given that additional financing will be available,
or if available, will be on acceptable terms," Mr. Rossi related.
"These conditions raise substantial doubt about our ability to
continue as a going concern. If adequate working capital is not
available we may be forced to discontinue operations, which would
cause investors to lose their entire investment."
At September 30, 2015, the company had total assets of $1,611,301,
total liabilities of $306,103, and total stockholders' equity of
$1,305,198.
A full-text copy of the company's quarterly report is available for
free at: http://tinyurl.com/jv2tvh4
Ontario, Canada-based Franchise Holdings International, Inc. (FNHI)
was incorporated in the state of Nevada in 2003. During the year
ended December 31, 2014, the company completed a reverse
acquisition transaction with TruXmart Ltd., which designs and
distributes truck tonneau covers in Canada and the U.S.
FREEDOM COMMUNICATIONS: Amends Schedules of Assets and Liabilities
------------------------------------------------------------------
Freedom Communications Inc. filed with the U.S. Bankruptcy Court
for the Central District of California an amended schedules
disclosing assets of $59,368,451 and liabilities of $213,887,330.
The Debtor previously reported assets of $59,368,451 and
liabilities of $218,890,683.
A full-text copy of the amended schedules dated Jan. 6, 2016, is
available for free at http://is.gd/zAHWn7
A full-text copy of the schedule dated Dec. 21, 2015, is available
for free at http://is.gd/nLi5T2
About Freedom Communications
Headquartered in Santa Ana, California, Freedom Communications,
Inc., owns two daily newspapers -- The Press-Enterprise in
Riverside, Calif. and The Orange County Register in Santa Ana,
Calif.
Freedom Communications and 24 of its affiliates sought Chapter 11
bankruptcy protection in California with the intention of selling
their assets to a group of local investors led by Rich Mirman,
Freedom's chief executive officer and publisher.
Headquartered in Santa Ana, California, Freedom owns two daily
newspapers -- The Press-Enterprise in Riverside, Calif. and The
Orange County Register in Santa Ana, Calif.
Freedom Communications, Inc., et al., filed Chapter 11 bankruptcy
petitions (Bankr. C.D. Cal. Proposed Lead Case No. 15-15311) on
Nov. 1, 2015. Richard E. Mirman signed the petition as chief
executive officer. Lobel Weiland Golden Friedman LLP serves as
the
Debtors' counsel.
Freedom Communications Holdings estimated both assets and
liabilities in the range of $10 million to $50 million.
FREEDOM COMMUNICATIONS: Can Hire Glassratner as Financial Advisor
-----------------------------------------------------------------
The Hon. Mark S. Wallace of the U.S. Bankruptcy Court for the
Central District of California authorized Freedom Communications
Inc. and its debtor-affiliates to employ GlassRatner Advisory &
Capital Group LLC as their financial advisor and consultant.
The firm is expected to:
1) review and analyze the Debtors' proposed business plans and
the business and financial condition of the Debtors;
2) review and critique the Debtors' financial projections and
assumptions;
3) review the Debtors' financial information, including, but
not limited to, analyzing cash receipts and disbursements,
financial statement items and proposed transactions for
which Bankruptcy Court approval is sought;
4) review and analyze the reporting regarding cash collateral
and any debtor-in-possession financing arrangements and
budgets;
5) evaluate alternatives available to the creditors;
6) prepare the requisite Statements of Financial Affairs and
corresponding schedules that will be required to be filed
with the Court in connection with the Chapter 11 cases;
7) advise and assist the Debtors in negotiations and meetings
with the Committee and creditor(s);
8) analyze assumption and rejection issues regarding executory
contracts and leases;
9) prepare enterprise, asset and liquidation valuation
analyses;
10) prepare documents necessary for confirmation;
11) assist with the claims resolution procedures, including,
but not limited to, analyses of creditors' claims by type
and entity;
12) provide expert witness testimony regarding confirmation
issues, avoidance actions or other matters; and
13) perform such other functions as may be requested by the
Debtors or their counsel (and as agreed to by GlassRatner)
to assist the Debtors in these chapter 11 cases.
The Debtors proposed to pay GlassRatner its customary hourly rates
for services rendered, which may be subject to adjustment from time
to time. The current rates are as follows:
Principals $525-$650
Senior Managing Directors $550-$650
Managing Directors $425-$550
Directors $325-$475
Vice Presidents $275-$450
Associates/Senior Associates $250-$315
Analysts/Administrative $95-$250
In connection with pre-petition workout and restructuring services,
on June 1, 2015, Freedom Communications paid GlassRatner, from its
general operating account, a $50,000 retainer, all of which was
applied to pre-petition services. In addition, GlassRatner was paid
$125,351 on account of its pre-petition invoices, for a total of
$175,351.80 paid to GlassRatner pre-petition.
Adam Meislik, senior managing director of the firm, assured the
Court that the firm is a "disinterested person" as defined in
Section 101(14) of the Bankruptcy Code.
Mr. Meislik can be reached at:
Adam Meislik
Glassratner Advisory & Capital Group LLC
19800 MacArther Blvd., Suite 820
Irvine, CA 92612
Tel: (949) 407-6627
Cel: (949) 281-6458
Fax: (949) 743-0333
Email: ameislik@glassratner.com
About Freedom Communications
Headquartered in Santa Ana, California, Freedom Communications,
Inc., owns two daily newspapers -- The Press-Enterprise in
Riverside, Calif. and The Orange County Register in Santa Ana,
Calif.
Freedom Communications and 24 of its affiliates sought Chapter 11
bankruptcy protection in California with the intention of selling
their assets to a group of local investors led by Rich Mirman,
Freedom's chief executive officer and publisher.
Headquartered in Santa Ana, California, Freedom owns two daily
newspapers -- The Press-Enterprise in Riverside, Calif. and The
Orange County Register in Santa Ana, Calif.
Freedom Communications, Inc., et al., filed Chapter 11 bankruptcy
petitions (Bankr. C.D. Cal. Proposed Lead Case No. 15-15311) on
Nov. 1, 2015. Richard E. Mirman signed the petition as chief
executive officer. Lobel Weiland Golden Friedman LLP serves as the
Debtors' counsel.
Freedom Communications Holdings estimated both assets and
liabilities in the range of $10 million to $50 million.
FREEDOM COMMUNICATIONS: Court Okays Lobel Weiland as Ch.11 Counsel
------------------------------------------------------------------
The Hon. Mark S. Wallace of the U.S. Bankruptcy Court for the
Central District of California authorized Freedom Communications
Inc. and its debtor-affiliates to employ Lobel Weiland Golden
Friedman LLP as their reorganization counsel.
The firm is expected to:
a) advise the Debtors regarding their powers and duties as
debtors-inpossession in the continued management and
operation of their affairs and properties;
b) represent the Debtors in proceedings or hearings before the
Bankruptcy Court involving matters of bankruptcy law;
c) attend meetings and negotiating with creditors and other
parties-in-interest;
d) take necessary actions to protect and preserve the Debtors'
estates, including the prosecution of actions on the
Debtors' behalf, the defense of any action commenced
against the Debtors, negotiating on behalf of the Debtors
with respect to all litigation in which the Debtors are
involved, and analyzing, and when appropriate objecting to,
claims that are filed against the Debtors' estates;
e) prepare all motions, applications, answers, orders,
reports, and papers on behalf of the Debtors that are
necessary to the administration of these chapter 11 cases;
f) represent the Debtors in connection with any proceedings
relating to any potential sale of assets;
g) advise and assist the Debtors in connection with the
confirmation and consummation of any proposed plan(s) of
reorganization; and
h) perform other and further services as typically may be
rendered by counsel for a debtor in a chapter 11 case.
The firm's attorneys and their hourly rates:
William N. Lobel, Esq. $800
Michael J. Weiland, Esq. $700
Jeffrey I. Golden, Esq. $700
Alan J. Friedman, Esq. $700
Sean A. O'Keefe, Esq. $700
Reem J. Bello, Esq. $600
Tavi C. Flanagan, Esq. $500
Beth E. Gaschen, Esq. $500
Faye C. Rasch, Esq. $500
Michael R. Adele, Esq. $500
Christopher Green, Esq. $350
All paralegals $250
All law clerks $250
William N. Lobel, Esq., partner at the firm, assured the Court that
the firm is a "disinterested person" within the meaning of Section
101(14) of the Bankruptcy Code.
Peter C. Anderson, U.S. Trustee for Region 16, raised concern
regarding the Debtors' bid to eliminate a 10% billing discount
which the firm applied to prepetition services provided to the
Debtors. In particular, the U.S. Trustee contended that the
elimination of the discount, in essence, could be construed as
charging a billing premium over the Debtors' customary billing
rates.
On Dec. 2, 2015, the Debtors filed with the Court a supplement to
their request to employ the firm. The supplement provided further
information of their billing practices in this and other cases.
The Debtors has agreed to file a supplement to their employment
request in which the firm agreed to a 20% "holdback" of any fees
paid to it pursuant to the so-called Knudsen procedures describe in
the Debtors' request, to be paid upon court approval of fees upon
an application filed under Bankruptcy Code Section 330 not less
than every 120 days.
Mr. Lobel can be reached at:
William N. Lobel, Esq.
Lobel Weiland Golden Friedman LLP
650 Town Center Drive, Suite 950
Costa Mesa, CA 92626
Tel: 714-966-1000
Fax: 714-966-1002
Email: wlobel@lwgfllp.com
mweiland@lwgfllp.com
jgolden@lwgfllp.com
afriedman@lwgfllp.com
tflanagan@lwgfllp.com
FRasch@lwgfllp.com
bgaschen@lwgfllp.com
cgreen@lwgfllp.com
About Freedom Communications
Headquartered in Santa Ana, California, Freedom Communications,
Inc., owns two daily newspapers -- The Press-Enterprise in
Riverside, Calif. and The Orange County Register in Santa Ana,
Calif.
Freedom Communications and 24 of its affiliates sought Chapter 11
bankruptcy protection in California with the intention of selling
their assets to a group of local investors led by Rich Mirman,
Freedom's chief executive officer and publisher.
Headquartered in Santa Ana, California, Freedom owns two daily
newspapers -- The Press-Enterprise in Riverside, Calif. and The
Orange County Register in Santa Ana, Calif.
Freedom Communications, Inc., et al., filed Chapter 11 bankruptcy
petitions (Bankr. C.D. Cal. Proposed Lead Case No. 15-15311) on
Nov. 1, 2015. Richard E. Mirman signed the petition as chief
executive officer. Lobel Weiland Golden Friedman LLP serves as the
Debtors' counsel.
Freedom Communications Holdings estimated both assets and
liabilities in the range of $10 million to $50 million.
FTE NETWORKS: Incurs $3.63 Million Net Loss in Fiscal 2015
----------------------------------------------------------
FTE Networks, Inc., filed with the Securities and Exchange
Commission its annual report on Form 10-K disclosing a net loss
attributable to common shareholders of $3.63 million on $14.4
million of revenues for the year ended Sept. 30, 2015, compared to
net income of $436,000 on $16.9 million of revenues for the year
ended Sept. 30, 2014.
As of Sept. 30, 2015, the Company had $4.89 million in total
assets, $16.0 million in total liabilities, and a total
stockholders' deficiency of $11.1 million.
The Company said it may not be able to maintain sufficient
liquidity.
"In the year ended September 30, 2015, we recorded a net loss of
$3,554,914 and we used $64,392 of cash in operating activities. As
of September 30, 2015, we have a working capital deficiency of $6.4
million, which includes $1.8 million of unpaid payroll tax
liabilities associated with our staffing segment, plus related
penalties and interest. If we don't satisfy the payroll tax
obligation as planned, it is possible that we could be subject to
additional fines and penalties. Subsequent to September 30, 2015,
we closed on an $8 million credit facility, of which (a) $1.8
million was used to extinguish $3.5 million of senior secured notes
and $1.8 million of related accrued interest; and (b) $3.0 million
was deposited into a restricted Company bank account which requires
the credit provider's approval to utilize. The Company will need
to continue to monitor its liquidity and many need to raise
additional funds until it begins to generate cash from operating
activities," the Company stated in the Quarterly Report.
A full-text copy of the Form 10-K is available for free at:
http://is.gd/veWEZw
About FTE Networks, Inc.
FTE Networks, formerly known as Beacon Enterprise Solutions Group,
Inc., is a vertically integrated company with an international
footprint. Since its inception, FTE Networks has steadily
advanced its management, operational and technical capabilities to
become a leading provider of services to the telecommunications
and wireless sector with a focus on turnkey solutions. FTE
Networks provides a comprehensive array of services centered on
quality, efficiency and customer service.
FUTURELAND CORP: Loss, Deficit Raise Going Concern Doubt
--------------------------------------------------------
FutureLand, Corp., reported a net loss and net cash used in
operating activities of $1,187,486 and $148,898, respectively, for
the three and nine months ended Sept. 30, 2015, has a working
capital deficit, and deficit accumulated during the development
stage of $1,989,007, and $67,659, respectively, and is in the
development stage with no revenues.
"These matters raise substantial doubt about the company's ability
to continue as a going concern," said Cameron Cox, chief executive
officer and acting chief financial officer of the company, in a
November 20, 2015 regulatory filing with the U.S. Securities and
Exchange Commission.
"The ability of the company to continue as a going concern is
dependent on the company's ability to further implement its
business plan, raise additional capital, and generate revenues."
At Sept. 30, 2015, the company had total assets of $57,174,547 and
total stockholders' equity of $56,888,966.
For the three months ended Sept. 30, 2015, the company posted a net
loss of $1,187,486 as compared with a net loss of $61,244 during
the quarter ended Sept. 30, 2014.
A full-text copy of the company's quarterly report, as amended, is
available for free at: http://tinyurl.com/gvxwyun
Greenwood Village, Colorado-based FutureLand, Corp. is a cannabis
and hemp specialty zoned land leasing company. FutureLand focuses
on target acquisition, zoning, license fulfillment, site plan
preparation and financing of cannabis or hemp grow facilities
throughout the U.S.
GLOBAL MARITIME: Creditors' Panel Taps CBIZ as Financial Advisor
----------------------------------------------------------------
The Official Committee of Unsecured Creditors of GMI USA Management
Inc. and its debtor-affiliates seeks authorization from the U.S.
Bankruptcy Court for the Southern District of New York to retain
CBIZ Accounting, Tax and Advisory of New York, LLC and CBIZ, Inc.
as financial advisor to the Committee, effective November 25,
2015.
The Committee requires CBIZ to:
(a) assist the Committee in its evaluation of the Debtors'
post-petition cash flow and/or other projections and
budgets prepared by the Debtors or its financial advisors;
(b) monitor the Debtors' activities regarding cash
expenditures and general business operations subsequent to
the filing of the petition under Chapter 11, as well as
assist the Committee in its review of monthly operating
reports;
(c) assist the Committee with any investigation into the pre-
petition acts, conduct, property, liabilities and
financial condition of the Debtor, its management, or
creditors, including the operation of the Debtors'
businesses, as instructed by the Committee.
(d) analyze transactions with creditors, insiders, related
and/or affiliated companies, subsequent and prior to the
date of the filing of the petition under Chapter 11, as
instructed by the Committee;
(e) if applicable, provide financial analysis related to any
debtor in possession financing, including advising the
Committee concerning such matters;
(f) if applicable, assist the Committee and its counsel in any
litigation proceedings against other potential adversaries
of the Debtors' estates;
(g) assist the Committee in its review of the financial
aspects of any proposed asset purchase agreement,
including searching for and evaluating any competing
offers. Evaluating the feasibility of any plan of
reorganization/liquidation. If applicable, assist the
Committee in negotiating are developing alternative
recovery strategies for unsecured creditors;
(h) attend meetings with representatives of the Committee and
its Counsel. Prepare presentations to the Committee that
provides analyses and updates on diligence performed; and
(i) perform any other services that may be necessary in our
role as financial advisors to the Committee or that may be
requested by the Committee or its counsel.
CBIZ will be paid at these hourly rates:
Directors and Managing Directors $435-$750
Managers and Senior Managers $325-$435
Senior Associates and Staff $150-$325
CBIZ will also be reimbursed for reasonable out-of-pocket expenses
incurred.
Charles Berk, managing director of CBIZ, 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.
CBIZ can be reached at:
Charles Berk
CBIZ ACCOUNTING, TAX AND ADVISORY OF
NEW YORK, LLC AND CBIZ, INC.
5 Bryant Park
New York, NY 10018
Tel: (212) 790-5883
Fax: (212) 790-5909
E-mail: cberk@cbiz.com
About GMI USA Management
GMI USA Management, Inc., Global Maritime Investments Cyprus
Limited, Global Maritime Investments Holdings Cyprus Limited,
Global Maritime Investments Resources (Singapore) Pte. Limited and
Global Maritime Investments Vessel Holdings Pte Ltd filed Chapter
11 bankruptcy petitions (Bankr. S.D.N.Y. Case Nos. 15-12552 to
15-12556) on Sept. 15, 2015.
The Debtors are engaged in three segments of the dry bulk shipping
markets, utilizing Freight Forward Agreements, physical "trading"
or supplying of ships for hire, and management of a dry bulk
shipping pool on behalf of ships owned directly or indirectly by
the Debtors, as well as for third party owners.
Debtor GMI USA Management is a recently formed New York
corporation. All of the other Debtors are foreign corporations
based in either Singapore or Cyprus.
Global Maritime Investments Holdings Cyprus Limited is a holding
company that owns 100% of the outstanding shares of each of (i)
Debtor GMI USA Management, Inc., (ii) Debtor Cyprus Tradeco, (iii)
Debtor Vessel Holdings and (iv) non-Debtor GMI Panamax Pool
Limited.
The Debtors estimated assets in the range of $1 million to $10
million and liabilities of at least $100 million.
The Debtors tapped Gardere Wynne Sewell, LLP, as counsel, and AMA
Capital Parnters as financial advisor.
GLOBAL MARITIME: Knowles of Dean Marine Advisors Tapped as CRO
--------------------------------------------------------------
GMI USA Management Inc. and its debtor-affiliates seek
authorization from the U.S. Bankruptcy Court for the Southern
District of New York to employ Justin Knowles of Dean Marine
Advisors as chief restructuring officer, nunc pro tunc to September
15, 2015.
The Debtors first engaged Mr. Knowles in September 2015 to provide
services as CRO for for the Debtors. Their decision to appoint a
CRO is primarily due to a desire to have an independent
professional engaged to manage their affairs. Mr. Knowles's
appointment as CRO is intended to provide the Court and the
Debtors' creditors with an independent party to manage and operate
the affairs of the Debtors under the auspices of the Court where
Mr. Knowles's primary fiduciary duties will be to the Court and the
Debtors' estate and its creditors.
Since that time, and in accordance with the Services Agreement, Mr.
Knowles' services include:
(a) acting as the Debtors' CRO until further Court order;
(b) acting as the Debtors' sole manager;
(c) being a signatory on the Debtors' DIP Operating Accounts;
(d) exercising authority to manage the business affairs of
the Debtors, including, without limitation:
-- making all decisions regarding the hiring and firing of
personnel;
-- making all decisions regarding the expenses incurred by
Debtors, and the terms of disbursements made by Debtors
for same;
-- authorizing the repairs and maintenance of estate
assets.
(e) representing the Debtors at negotiation and liaison
meetings, correspondence and calls with members of the
Debtors' board of directors, the Debtors' management and
employees, lenders and their advisors, the Debtors'
creditors, and the Debtors' professional advisors.
(f) making all reasonable efforts to consult with all secured
creditors, unsecured creditors, parties-in-interest, the
US Trustee, and the Committee;
(g) making all reasonable efforts to present to the UST all
Information required for the Initial Debtor's Conference;
(h) making all reasonable efforts to assist bankruptcy counsel
in preparing and filing schedules, statements of financial
affairs, amendments thereto, and monthly operating reports
on a timely basis;
(i) investigating and pursuing all available chapter 5 causes
of action and non-chapter 5 causes of action against
creditors, whether they be insiders or non-insiders,
members, and other potential defendants unless such
causes of action are transferred via a chapter 11 plan to
a creditors' trust;
(j) causing the Debtors to pay all UST Quarterly fees on a
timely basis;
(k) attending court hearings, depositions, and similar
meetings in connection with the Debtors affairs; and
(l) making all reasonable efforts to assist bankruptcy counsel
in facilitating an orderly wind-down of the Debtors.
Mr. Knowles's daily rate will be $5,000 per day, which may be
recorded in increments of half a day.
Mr. Knowles will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Mr. Knowles assured the Court that his firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code and does not represent any interest adverse to the Debtors and
their estates.
Mr. Knowles can be reached at:
Justin Knowles
DEAN MARINE ADVISERS
9–10 St. Andrew Square
Edinburgh, UK EH2 2AF
Tel: +44 (0) 7562 601095
E-mail: justin.knowles@deanmarineadvisers.co.uk
About GMI USA Management
GMI USA Management, Inc., Global Maritime Investments Cyprus
Limited, Global Maritime Investments Holdings Cyprus Limited,
Global Maritime Investments Resources (Singapore) Pte. Limited and
Global Maritime Investments Vessel Holdings Pte Ltd filed Chapter
11 bankruptcy petitions (Bankr. S.D.N.Y. Case Nos. 15-12552 to
15-12556) on Sept. 15, 2015.
The Debtors are engaged in three segments of the dry bulk shipping
markets, utilizing Freight Forward Agreements, physical "trading"
or supplying of ships for hire, and management of a dry bulk
shipping pool on behalf of ships owned directly or indirectly by
the Debtors, as well as for third party owners.
Debtor GMI USA Management is a recently formed New York
corporation. All of the other Debtors are foreign corporations
based in either Singapore or Cyprus.
Global Maritime Investments Holdings Cyprus Limited is a holding
company that owns 100% of the outstanding shares of each of (i)
Debtor GMI USA Management, Inc., (ii) Debtor Cyprus Tradeco, (iii)
Debtor Vessel Holdings and (iv) non-Debtor GMI Panamax Pool
Limited.
The Debtors estimated assets in the range of $1 million to $10
million and liabilities of at least $100 million.
The Debtors tapped Gardere Wynne Sewell, LLP, as counsel, and AMA
Capital Parnters as financial advisor.
GLOBALSTAR INC: Appoints David Kagan President and COO
------------------------------------------------------
Globalstar, Inc., announced that David Kagan has been appointed
president and chief operating officer effective Jan. 13, 2016. Mr.
Kagan will be responsible for all functions in support of the
Company's revenue growth and will report to Jay Monroe, Chairman
and CEO. Reporting to Kagan will be worldwide sales and marketing,
satellite and ground operations and engineering, product
development, software development, information technology and
customer care.
Mr. Kagan comes to Globalstar with 19 years of leadership
experience in the international satellite industry. Immediately
prior to joining Globalstar he was president of ITC Global, a
global VSAT satellite services provider. Mr. Kagan also served as
president and CEO of Globe Wireless for three years, increasing
EBITDA over three-fold. For twelve years before joining Globe
Wireless, Kagan served as president and CEO of MTN, an
international satellite services provider to the cruise, yachting,
and maritime markets. His accomplishments include forming a joint
venture with AT&T to enable mobile phone usage (voice, data, and
texting) on the world's international cruise fleets.
He has held various Board, CEO/President, COO and CFO positions
since 1997, thereby gaining extensive global experience in
profitable distribution models in addition to operational
efficiencies, all aimed at quickly increasing revenue growth rates
and EBITDA. Mr. Kagan holds a Bachelor of Arts degree in Finance
and Marketing from the University of South Florida and a Master of
Business Administration degree from Florida Atlantic University.
"As we kick off what is sure to be a pivotal year for Globalstar, I
am delighted to welcome Dave to the Globalstar team," said Jay
Monroe, Chairman and CEO of Globalstar. "The Board of Directors
and I identified this position as crucial to the Company's ongoing
strategic growth as we prepare to launch our next-gen service
upgrades, new products to leverage our industry-leading
infrastructure and continue to expand our global footprint,
particularly in South America, Africa and Asia. Mr. Kagan has
consistently demonstrated his ability to manage this type of global
revenue and profit growth."
Mr. Kagan also commented, "I am eager to get started with the
talented team already in place at Globalstar. The Company has been
on an upward trajectory since it completed the launch of the newest
constellation and I look forward to helping them leverage its
advantages as we begin operating on our second generation ground
network."
In connection with his appointment, Mr. Kagan received a restricted
stock award grant of 30,000 shares that vest equally over a three
year period; and stock options to purchase 250,000 shares that vest
equally over a three year period. Mr. Kagan also will be eligible
for future stock option and restricted stock awards based on
various conditions being met. Globalstar will pay up to $40,000 in
relocation expenses and for certain travel and housing related
costs prior to his relocation.
About Globalstar, Inc.
Globalstar is a leading provider of mobile satellite voice and
data services. Globalstar offers these services to commercial and
recreational users in more than 120 countries around the world.
The company's products include mobile and fixed satellite
telephones, simplex and duplex satellite data modems and flexible
service packages. Many land based and maritime industries benefit
from Globalstar with increased productivity from remote areas
beyond cellular and landline service. Globalstar customer
segments include: oil and gas, government, mining, forestry,
commercial fishing, utilities, military, transportation, heavy
construction, emergency preparedness, and business continuity as
well as individual recreational users. Globalstar data solutions
are ideal for various asset and personal tracking, data monitoring
and SCADA applications.
Globalstar reported a net loss of $463 million in 2014, a net loss
of $591 million in 2013 and a net loss of $112 million in 2012.
As of Sept. 30, 2015, Globalstar had $1.26 billion in total assets,
$1 billion in total liabilities and $263 million in total
stockholders' equity.
HANCOCK FABRICS: Said to Prep for 2nd Bankruptcy Filing
-------------------------------------------------------
Lauren Coleman-Lochner, writing for Bloomberg Brief - Distress &
Bankruptcy, reported that Hancock Fabrics Inc., a retail chain that
sells sewing supplies, is preparing for a second trip to bankruptcy
court, according to two people with knowledge of the situation.
Barring a last-minute reprieve, the company could take the step as
soon as this month, said the people, who asked not to be identified
because the process isn't yet public, the Bloomberg report
related.
The Baldwyn, Mississippi-based company previously filed for
bankruptcy in March 2007, soon after announcing it would close
about 100 stores, and re-emerged the following year, the report
pointed out.
Hancock included a warning about its ability to continue as a going
concern in its third-quarter filing late last year, the report
further related. The money-losing retailer had about $3 million in
cash in the quarter ended Oct. 31, the report said. At the time,
the company operated about 260 stores in 37 states, along with an
e-commerce site, the report added.
About Hancock Fabrics
Headquartered in Baldwyn, Mississippi, Hancock Fabrics Inc.
(OTC: HKFIQ) -- http://www.hancockfabrics.com/-- is a specialty
retailer of a wide selection of fashion and home decorating
textiles, sewing accessories, needlecraft supplies and sewing
machines. Hancock Fabrics is one of the largest fabric retailers
in the United States, currently operating approximately 400 retail
stores in approximately 40 states. The company employs
approximately 7,500 people on a full-time and part-time basis.
Most of the company's employees work in its retail stores, or in
field management to support its retail stores.
The company and six of its debtor-affiliates filed for chapter 11
protection on March 21, 2007 (Bankr. D. Del. Lead Case No.
07-10353). Robert J. Dehney, Esq., at Morris, Nichols, Arsht &
Tunnell, represents the Debtors. The U.S. Trustee for Region 3
appointed five creditors to serve on an Official Committee of
Unsecured Creditors.
The Court confirmed the Debtors' joint consolidated plan of
reorganization on July 22, 2008.
The Troubled Company Reporter, on Aug. 5, 2008, reported that
Hancock Fabrics Inc. emerged from Chapter 11 bankruptcy protection
after restructuring its business operations and satisfying the
conditions to effectiveness set forth in the Plan of Reorganization
confirmed by the United States Bankruptcy Court for the District
of Delaware on July 22, 2008. In conjunction with the Plan,
Hancock Fabrics has closed a $100 million exit financing facility
provided by GE Commercial Finance Corporate Lending and has issued
$20 million of secured notes and warrants in connection with a
rights offering to certain of its shareholders.
HEALTHSPOT INC: Files for Chapter 7 Liquidation
-----------------------------------------------
Carrie Ghose at Columbus Business First reports that HealthSpot
Inc. filed for Chapter 7 bankruptcy liquidation in the U.S.
Bankruptcy Court for the Southern District of Ohio on Jan. 13,
2016, two weeks after stopping operations.
The report quoted David Whittaker, Esq., at Bricker & Eckler LLP,
the Company's bankruptcy counsel, as saying, "There were some
positive events in the operation of the business, but the company
simply did not have enough cash flow to continue to operate and
continue to execute on those positive opportunities."
In its bankruptcy filing, the Company listed $5.2 million in assets
and $23.3 million in liabilities. According to Business First, the
largest single debts listed under unsecured creditors are
convertible notes of $10 million from Cox Communications and $6
million from investor Xerox Corp.
Business First recalls that the Company's board passed a resolution
in December authorizing founder and CEO Steve Cashman to file
either a Chapter 7 bankruptcy liquidation or a Chapter 11 for
reorganizing while paying off creditors. The report states that
Mr. Cashman and the board members then resigned.
HealthSpot Inc. is a Dublin startup that had raised about $48
million over four years for its telemedicine kiosks for quick,
convenient access to a doctor.
INVENTIV HEALTH: To Present at J.P. Morgan Healthcare Conference
----------------------------------------------------------------
Representatives of inVentiv Health, Inc., will present at the 34th
annual J.P. Morgan Healthcare Conference at the Westin St. Francis
Hotel in San Francisco, CA at 8:30am Pacific Time. A copy of the
conference presentation materials is available for free at:
http://is.gd/FwO5nY
The Company updated its prior 2015 Adjusted EBITDA estimate to
approximately $275 million and additionally discloses that it
currently expects its cash balance as of Dec. 31, 2015, to be
approximately $120 million. The Company anticipates that its
strong financial performance may present capital markets
opportunities in the future and will consider whether to pay
interest on its 10%/12% Junior Lien Secured Notes Due 2018 at a
cash rate of 10% per annum or payment-in-kind at a rate of 12% per
annum for the six month period beginning Feb. 15, 2016.
About inVentiv Health
inVentiv Health, Inc., is privately owned by inVentiv Group
Holdings, Inc., an organization sponsored by affiliates of Thomas
H. Lee Partners, L.P., Liberty Lane Partners and members of the
inVentiv Health management team.
inVentiv Health is a top-tier professional services organization
that accelerates the clinical and commercial success of
biopharmaceutical companies worldwide. The Company's combined
Clinical Research Organization and Contract Commercial Organization
helps clients improve their performance to deliver much-needed
therapies to market. With 13,000 employees providing services to
clients in 70 countries, inVentiv Health designs best practices,
processes and systems to enable clients to successfully navigate an
increasingly complex environment.
- See more at:
http://www.inventivhealth.com/our-company/investors#sthash.Oi040G6G.dpuf
As of Sept. 30, 2015, the Company had $2.20 billion in total
assets, $2.90 billion in total liabilities and a total
stockholders' deficit of $699 million.
* * *
As reported by the TCR on May 22, 2015, Moody's Investors Service
affirmed the Caa1 Corporate Family Rating and Caa1-PD Probability
of Default Rating of inVentiv Health, Inc. as well as all of the
instrument ratings. The Caa1 rating reflects inVentiv's very high
leverage, history of negative free cash flow and significant
interest burden which will make a default event likely if the
company does not significantly improve its EBITDA performance well
ahead of 2018, when all of the company's debt matures.
The TCR reported on Dec. 12, 2012, that Standard & Poor's Ratings
Services affirmed its 'B-' corporate credit rating on Burlington,
Mass.-based contract research organization (CRO) inVentiv Health
Inc.
JAMES F. HUMPHREYS: Files for Chapter 11 Bankruptcy Protection
--------------------------------------------------------------
James F. Humphreys & Associates, L.C., filed for Chapter 11
bankruptcy protection (Bankr. S.D. W. Va. Case No. 16-20006) on
Jan. 13, 2016, estimating its assets and liabilities at between $1
million and $10 million each. The petition was signed by James F.
Humphreys, president.
The Firm said in a statement that it sought bankruptcy protection
to "resolve all pending and potential claims against the firm in
one forum and in a timely and equitable manner."
Judge Frank W. Volk presides over the case. Julia A. Chincheck,
Esq., who has an office in Charleston, West Virginia, and Danielle
L Dietrich, Esq., Judith K. Fitzgerald, and Beverly Weiss Manne,
Esq., at Tucker Arensberg P.C., serve as the Firm's bankruptcy
counsel. Bowles Rice LLP is the Firm's local counsel.
Mr. Humphreys said in the statement that the filing should not
affect the day-to-day operations of the firm and cases it currently
is handling.
Chris Dickerson, writing for West Virginia Record, relates that Mr.
Humphreys has been sued by former clients for allegedly mishandling
hundreds of asbestos and flood damages cases. Mr. Humphreys and
the Firm were listed in a class action in October 2015 by people
who claim that the Firm mishandled a mass tort asbestos exposure
case against Celotex. West Virgina Record adds that in the new
Celotex complaint, McCormick claims Mr. Humphreys and the Firm
negligently failed to follow procedure for properly submitting the
plaintiffs' claims against Celotex.
James F. Humphreys & Associates, L.C., is headquartered in
Charleston, West Virginia.
JOYCE LESLIE: Appoints Rust/Omni as Claims & Noticing Agent
-----------------------------------------------------------
Joyce Leslie, Inc., seeks authority from the Bankruptcy Court to
employ Rust Consulting/Omni Bankruptcy as its claims and noticing
agent.
Although the Debtor has not yet filed its schedules of assets and
liabilities, it anticipates that there will be in excess of 2500
entities to be noticed. In view of the number of anticipated
claimants and the complexity of its business, the Debtor maintains
that the appointment of a claims and noticing agent is both
necessary and in the best interests of both its estate and its
creditors.
"By appointing ... the claims and noticing agent in this Chapter 11
case, the distribution of notices and the processing of claims will
be expedited, and the Clerk's office will be relieved of the
administrative burden of processing what may be an overwhelming
number of claims," said Lee Diercks, chief restructuring officer.
The Debtor intends to pay Rust/Omni based on the firm's discounted
hourly rates:
Custom Services Discounted Rates
--------------- ----------------
Clerical Support $21-$38 per hour
Project Specialists $48-$63 per hour
Project Supervisors $63-$80 per hour
Consultants $80-$106 per hour
Technology/Programming $85-$110 per hour
Senior Consultants $119-$148 per hour
The Debtor requests that the undisputed fees and expenses incurred
by Rust/Omni in the performance of the services be treated as
administrative expenses of its Chapter 11 estate and be paid in the
ordinary course of business without further application to or order
of the Court.
Prior to the Petition Date, the Debtor provided the Claims and
Noticing Agent a retainer in the amount of $20,000. Rust/Omni
seeks to first apply the retainer to all pre-petition invoices, and
thereafter, to have the retainer replenished to the original
retainer amount, and thereafter, to hold the retainer under the
Engagement Agreement during the Chapter 11 case as security for the
payment of fees and expenses incurred under the Engagement
Agreement.
Rust/Omni represents to the Court that it is a "disinterested
person" as that term is defined in Section 101(14) of the
Bankruptcy Code with respect to the matters upon which it is to be
engaged.
About Joyce Leslie
Joyce Leslie, Inc. filed a Chapter 11 bankruptcy petition (Bankr.
S.D.N.Y. Case No. 16-22035) on Jan. 9, 2016. The petition was
signed by Lee Diercks as chief restructuring officer. The Debtor
disclosed total assets of $7 million and total debts of $9 million.
Judge Robert D. Drain has been assigned the case.
The Debtor has engaged Goldberg Weprin Finkel Goldstein LLP as
counsel, Clear Thinking Group as financial advisor, Oberon
Securities, LLC as investment advisor, SB Capital Group LLC, Tiger
Capital Group, LLC, and 360 Merchant Solutions, LLC as liquidation
agents and Rust Consulting/Omni Bankruptcy as claims and noticing
agent.
The Company operates a chain of 47 women's retail clothing stores
located throughout New York, New Jersey, Pennsylvania and
Connecticut.
JOYCE LESLIE: Files for Chapter 11; In Search of Buyer
------------------------------------------------------
Women's clothing stores operator Joyce Leslie, Inc. sought Chapter
11 bankruptcy protection with the goal of liquidating its assets
for the benefit of unsecured creditors. The Company operates a
chain of 47 women's retail clothing stores located throughout New
York, New Jersey, Pennsylvania and Connecticut.
Lee Diercks, chief restructuring officer of Joyce Leslie, said the
Company's sales dropped from from approximately $104 million for
the fiscal year ending January 2012 to $63 million for the year
ending January 2016. According to Mr. Diercks, the decline is
attributable to, among other things, a pronounced shift in consumer
spending patterns, increased competition, and the Company's
inability to compete in today's technology-driven environment due
to the lack of a sophisticated e-commerce platform.
In fiscal year 2014, Joyce Leslie negotiated a forbearance
agreement with its lead creditors to obtain cash flow relief while
it sought out a new Asset Based Lender, which ultimately became HVB
Capital Credit LLC. In connection with the forbearance agreement,
Joyce Leslie also retained Clear Thinking Group as its financial
consultants with the aim of attempting to streamline certain
expenses. Clear Thinking has continued to be engaged by Joyce
Leslie even after completion of the forbearance agreement in late
2014.
Mr. Diercks maintained that while Clear Thinking has implemented
many important reductions in operating expenses, the decline in
sales has not been able to be reversed.
As of the Petition Date, the Debtor maintains approximately $4
million of inventory at cost ($10 million retail), located in the
various retail stores. The Debtor maintains executive offices and
warehouse facilities in Moonachie, New Jersey, but substantially
all of its inventory is located at the store level and there are
minimal goods located at the warehouse.
The Debtor also recently satisfied outstanding secured debt owed to
Everbank Financial Corp., as successor by assignment to HVB,
pursuant to a revolving credit facility denominated Loan and
Security Agreement dated April 22, 2014. Joyce Leslie maintained
an average balance of $3 million under the Pre-Petition Credit
Facility since August 2015, which was secured by substantially all
of the Company's assets.
During the week of Jan. 4, 2016, Joyce Leslie fully satisfied the
secured debt by paying the balance of $662,000 to Everbank from
store collections and the liquidation of a Cash Collateral Bond
Account. Payment of the secured debt was done at the request of
Everbank, and Joyce Leslie does not anticipate the need for any
additional bank borrowing during the Chapter 11 case and has no
remaining secured debt at this time.
The only residual obligation owed to Everbank is a letter of credit
standing as security for the Company's headquarters lease. This
letter of credit is separately collateralized by a cash collateral
account of $110,000, which does not raise a cash collateral
concern. Everbank is also holding a $250,000 cash deposit for
subsequent liabilities or expenses, which will be released in its
discretion or upon receipt of a general release from the Company.
First Day Motions
Contemporaneously with the petition, Joyce Leslie filed various
first day motions with the aim of keeping the Company up and
running for a period of approximately 30 days until a going concern
buyer can be found or anticipated liquidation sales can begin in
earnest. The Debtors are seeking authority to, among other things,
use existing cash management system, pay employee wages and
prohibit utility providers from discontinuing services.
About Joyce Leslie
Joyce Leslie, Inc. filed a Chapter 11 bankruptcy petition (Bankr.
S.D.N.Y. Case No. 16-22035) on Jan. 9, 2016. The petition was
signed by Lee Diercks as chief restructuring officer. The Debtor
disclosed total assets of $7 million and total debts of $9 million.
Judge Robert D. Drain has been assigned the case.
The Debtor has engaged Goldberg Weprin Finkel Goldstein LLP as
counsel, Clear Thinking Group as financial advisor, Oberon
Securities, LLC as investment advisor, SB Capital Group LLC, Tiger
Capital Group, LLC, and 360 Merchant Solutions, LLC as liquidation
agents and Rust Consulting/Omni Bankruptcy as claims and noticing
agent.
LINCOLN PAPER: SSG Acted as Investment Banker on Asset Sale
-----------------------------------------------------------
SSG Capital Advisors, LLC, acted as the investment banker to
Lincoln Paper & Tissue, LLC in the sale of substantially all of its
assets to Gordon Brothers Commercial & Industrial, LLC, Capital
Recovery Group, LLC, PPL Group, LLC and Rabin Worldwide, Inc. The
sale was effectuated through a Chapter 11 Section 363 process in
the U.S. Bankruptcy Court for the District of Maine. The
transaction closed in December 2015.
Lincoln is one of the most recognized producers and a domestic
leader in colored and specialty tissue products. In November 2013,
Lincoln was forced to shut its pulping and papermaking operations
following a boiler explosion which disrupted its ability to produce
its own wood pulp and manufacture non-tissue paper. In the
aftermath, the Company transitioned from a tissue mill supported by
an integrated kraft pulp mill to a non-integrated operation. The
costs of the reconfiguration efforts, along with relatively
unfavorable parent roll markets throughout 2014 into the first half
of 2015, adversely impacted revenue, profitability and liquidity.
Ultimately, the Company's constrained liquidity and mechanics liens
liabilities precipitated Lincoln seeking Chapter 11 bankruptcy
protection in September 2015 and provided the venue to effectuate a
sale transaction.
SSG was retained in April 2015 to evaluate strategic alternatives;
including a sale of all or a portion of the assets, joint venture
partnership or minority control investment. SSG conducted a
comprehensive marketing process to a wide universe of international
and domestic buyers to structure the optimal solution for Lincoln.
Several parties engaged in a thorough review of the business and
submitted offers for all or a part of the assets. Reich Brothers
served as the stalking horse bidder. In addition to the stalking
horse offer, the Company received three competing qualified bids.
Upon conclusion of the auction, the consortium led by Gordon
Brothers Commercial and Industrial, LLC was ultimately deemed to be
the highest and best bid.
Other professionals who worked on the transaction include:
* Robert J. Keach, D. Sam Anderson, John Carpenter, Lindsay K.
Zahradka, Roma N. Desai, Timothy J. McKeon and Jessica Ann Lewis of
Bernstein, Shur, Sawyer & Nelson, P.A., counsel to Lincoln Paper &
Tissue, LLC;
* Lawrence F. Flick II, Regina S. Kelbon and John E. Lucian of
Blank Rome LLP, counsel to Lincoln's lender;
* Jay S. Geller of the Law Office of Jay S. Geller, Fred W.
Bopp III and Lauren B. Weliver of Perkins Thompson, P.A., counsel
to the Official Committee of Unsecured Creditors;
* Kevin J. Simard of Choate, Hall & Stewart, LLP, counsel to
the Gordon Brothers consortium;
* Kelly W. McDonald of Murray, Plumb & Murray, counsel to
certain mechanics liens holders; and
* Christopher Roney, General Counsel for the Finance Authority
of Maine
About SSG Capital Advisors, LLC
SSG Capital Advisors is an independent boutique investment bank
that assists middle-market companies and their stakeholders in
completing special situation transactions. SSG provides its
clients with comprehensive investment banking services in the areas
of mergers and acquisitions, private placements, financial
restructurings, valuations, litigation and strategic advisory. SSG
has a proven track record of closing over 300 transactions in North
America and Europe and is a leader in the industry. SSG Capital
Advisors, LLC (Member FINRA, SIPC) is a wholly owned broker dealer
of SSG Holdings, LLC. SSG is a registered trademark for SSG
Capital Advisors, LLC. SSG provides investment banking,
restructuring advisory, merger, acquisition and divestiture
services, private placement services and valuation opinions.
About Lincoln Paper
Lincoln Paper and Tissue, LLC, filed a Chapter 11 bankruptcy
petition (Bankr. D. Maine Case No. 15-10715) on Sept. 28, 2015.
Keith Van Scotter signed the petition as president and CEO.
The Debtor estimated both assets and liabilities of $10 million to
$50 million.
Judge Peter G. Cary is assigned to the case.
The Debtor has engaged Bernstein Shur Sawyer & Nelson as counsel,
Spinglass Management Group as financial advisor, and SSG Capital
Advisors, LLC as investment banker.
Lincoln is a manufacturer of white tissue located on approximately
350 acres of land along the Penobscot River in Lincoln, Maine. The
Company claims to have produced 70,000 tons of tissue and
75,000 tons of specialized, high-bulk uncoated free-sheet paper.
LOCAL CORP: Has Retention Agreements with 40 Employees
------------------------------------------------------
Local Corp. and the Official Committee of Unsecured Creditors
entered into a stipulation seeking bankruptcy court approval of
amended and restated retention agreements with certain of the
Debtor's employees.
Prepetition, the Debtor entered into a retention agreement with
certain of its employees. The retention agreement offered general,
non-insider, non-"C-suite" employees a "retention bonus" to
incentivize employees to remain in the Debtor's employ. The
Debtor's workforce was highly knowledgeable about the Debtor's
technologies and had long-standing relationships with its
customers.
On Oct. 21, 2015, the Debtor, after extensive discussion and
negotiation with the Committee, determined to amend and restate the
terms of the retention, and on Oct. 30, 2015, approximately 40
employees executed the amended retention agreement.
The amended retention agreement provides that, among other things:
(a) each retention bonus will not exceed six weeks annual salary
for the retained employee; and (b) the aggregate amount of
retention bonuses paid to the retained employee will not exceed
$500,000.
Garrick Hollander, Esq., a shareholder of Winthrop Couchot
Professional Corporation, general insolvency counsel for the
Debtor, said the signature block for the U.S. Trustee was removed
from the stipulation to approve amended and restated retention
agreement. According to Mr. Hollander, the U.S. Trustee determined
that it would not take position either for or against the
stipulation.
A full-text copy of the stipulation is available for free at:
http://bankrupt.com/misc/LocalCorp_stipulation.pdf
About Local Corporation
Local Corporation, a publicly traded Delaware corporation (NASDAQ
symbol LOCM), is in the business of providing search results to
consumers who are searching online for local businesses, products
and services. Founded in 1999, the Irvine, California-based
company went public in 2004 and has been one of the fastest growing
online local media businesses for a number of years, and for the
past four years it has been listed by Deloitte on its Technology
Fast 500. The Company's search results are provided through the
Company's flagship Local.com Web site and through other proprietary
Web sites, and they are also delivered to a network of over 1,600
other Web sites that rely on search syndication services to provide
local search results to their own users. The Company generates
revenue from ad units placed alongside its search results, which
include pay-per-click, pay-per-call, and display ad units.
The Company reported a net loss of $5.50 million on $83.1 million
of revenue for the year ended Dec. 31, 2014, compared with a net
loss of $10.4 million on $94.4 million of revenue in the prior
year. The Company's balance sheet at March 31, 2015, showed
$36.8 million in total assets, $25.7 million in total liabilities,
and stockholders' equity of $11.2 million.
Local Corp. filed a Chapter 11 bankruptcy petition (Bankr. C.D.
Cal. Case No. 15-13153) in Santa Ana, California, on June 23,
2015. The Debtor disclosed $16,141,222 in assets and $29,519,418
in liabilities as of the Chapter 11 filing.
The case is assigned to Judge Scott C. Clarkson. The Debtor tapped
Winthrop Couchot as counsel.
Robins Kaplan LLP represents as counsel to the Official Committee
of Unsecured Creditors.
MONESSEN, PA: Moody'sAffirms Ba1 General Obligation Rating
----------------------------------------------------------
Moody's Investor Service has affirmed the City of Monessen, PA's
Ba1 General Obligation rating. The outlook remains negative.
The Ba1 reflects the city's deepening structural imbalance,
resulting in little to no liquidity and negative fund balance. The
fiscal 2014 audit shows no deviation from previous estimates, with
the city continuing to face significant challenges given its small
and weakening tax base, below-average socioeconomic indicators, and
above average debt burden.
Rating Outlook
The negative outlook reflects the challenges the city faces in
restoring near-term financial stability.
Factors that Could Lead to an Upgrade
-- Return to structural balance leading to improved
liquidity and reserve levels
-- Significant improvement in the city's tax base
and socioeconomic indicators
Factors that Could Lead to a Downgrade
-- Continued structural imbalance resulting in a
deepening negative reserve position
-- Inability to meet fiscal 2015 financial projections
-- Failure to make contractual payments such as
debt service, pension, or payroll
-- Further deterioration in the tax base
Legal Security
Debt service on the rated debt is secured by the city's general
obligation unlimited ad valorem tax pledge.
Use of Proceeds
Not applicable.
Obligor Profile
The City of Monessen is located in southwestern Pennsylvania in the
Monongahela River Valley. It has a population of 7,682.
MOTORS LIQUIDATION: To Settle Term Loan Avoidance Actions for $75M
------------------------------------------------------------------
As previously disclosed on Nov. 12, 2015, in a quarterly report on
Form 10-Q, pursuant to the terms of the Second Amended and Restated
Motors Liquidation Company GUC Trust Agreement dated as of July 30,
2015, and between the parties thereto, the Motors Liquidation
Company GUC Trust is potentially liable to holders of Term Loan
Avoidance Action Claims and has set aside approximately $439
million for the purposes of satisfying this liability in the event
it were to arise. Pursuant to the GUC Trust Agreement, to the
extent that all or a portion of the Term Loan Reserve is no longer
needed for the satisfaction of Term Loan Avoidance Action Claims,
the remaining cash in the Term Loan Reserve would become available
for distribution to holders of the units of contingent beneficial
interest in the GUC Trust.
The GUC Trust announced that it has reached an agreement in
principle with the Motors Liquidation Company Avoidance Action
Trust regarding the treatment of the Term Loan Avoidance Action
Claims, which Proposed Agreement (to the extent it becomes
effective) would result in the reduction of the potential liability
of the GUC Trust associated with the Term Loan Avoidance Action
Claims from $439 million to $75 million. The Proposed Agreement
has been approved by the trust monitors of the GUC Trust and the
Avoidance Action Trust but is subject to, and will not be binding
until, the execution of definitive documentation acceptable to the
parties thereto and other conditions precedent, including the
approval of the Bankruptcy Court for the Southern District of New
York.
As previously disclosed, the Official Committee of Unsecured
Creditors appointed in the bankruptcy cases of Motors Liquidation
Company and certain of its wholly-owned subsidiaries commenced, on
behalf of the Debtors, an action titled Official Committee of
Unsecured Creditors of Motors Liquidation Co. v. JPMorgan Chase
Bank, N.A. et al., Adv. Pro. No. 09-00504 (Bankr. S.D.N.Y. July 31,
2009), which action seeks the return of approximately $1.5 billion
that had been transferred by the Debtors to certain prepetition
lenders to the Debtors pursuant to an order of the Bankruptcy
Court. The Avoidance Action Trust is the successor in interest to
the Committee with respect to the right to prosecute the Term Loan
Avoidance Action and to receive any recovery from the defendant
Term Loan Lenders named therein.
Pursuant to the GUC Trust Agreement, to the extent that the
Avoidance Action Trust is successful in obtaining a recovery from
any Term Loan Defendant, by way of judgment or settlement, such
Term Loan Defendant shall receive an allowed general unsecured
claim against the GUC Trust in the amount so disgorged to the
Avoidance Action Trust. Pursuant to the GUC Trust Agreement, prior
to any resolution of the Term Loan Avoidance Action, the GUC Trust
is required to withhold from distribution cash that would be
potentially distributable to Term Loan Defendants in respect of a
maximum $1.5 billion aggregate Term Loan Avoidance Action Claim,
which amount equals approximately $439 million. The Term Loan
Reserve is subject to reduction (and subsequent distribution to
Unitholders) only to the extent that the Term Loan Avoidance Action
is dismissed or resolved in amounts less than that currently sought
by the Avoidance Action Trust.
Proposed Agreement
The terms of the Proposed Agreement, all of which are subject to
the caveats set forth below, are as follows:
* The GUC Trust shall pay $75 million in cash from the Term
Loan Reserve to the Avoidance Action Trust;
* The GUC Trust shall be relieved of its obligations to satisfy
any Term Loan Avoidance Action Claims; and
* The Avoidance Action Trust shall assume the GUC Trust's
obligation to satisfy Term Loan Avoidance Action Claims via a
set-off from any amount disgorged by a Term Loan Defendant
(whether pursuant to a judgment or settlement) in respect of
the Term Loan Avoidance Action.
While the foregoing terms have been agreed in principle by the GUC
Trust and the Avoidance Action Trust and have been approved by the
Monitors, no binding agreement has been reached and the Proposed
Agreement is subject to a number of conditions which may or may not
ever be satisfied, including the following: (i) entry into
definitive documentation acceptable to each of the GUC Trust,
Avoidance Action Trust and the Monitors, and (ii) approval of the
Bankruptcy Court and any other necessary parties. Whether the
Proposed Agreement will, at any point, become a binding agreement
on the terms set forth above, or at all, is uncertain and subject
to numerous risks.
About Motors Liquidation
General Motors Corporation and three of its affiliates filed for
Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 09-50026) on
June 1, 2009. The Honorable Robert E. Gerber presides over the
Chapter 11 cases. Harvey R. Miller, Esq., Stephen Karotkin,
Esq., and Joseph H. Smolinsky, Esq., at Weil, Gotshal & Manges
LLP, assist the Debtors in their restructuring efforts. Al Koch
at AP Services, LLC, an affiliate of AlixPartners, LLP, serves as
the Chief Executive Officer for Motors Liquidation Company. GM
is also represented by Jenner & Block LLP and Honigman Miller
Schwartz and Cohn LLP as counsel. Cravath, Swaine, & Moore LLP
is providing legal advice to the GM Board of Directors. GM's
financial advisors are Morgan Stanley, Evercore Partners and the
Blackstone Group LLP. Garden City Group is the claims and notice
agent of the Debtors.
The U.S. Trustee appointed an Official Committee of Unsecured
Creditors and a separate Official Committee of Unsecured
Creditors Holding Asbestos-Related Claims. Lawyers at Kramer
Levin Naftalis & Frankel LLP served as bankruptcy counsel to the
Creditors Committee. Attorneys at Butzel Long served as counsel
on supplier contract matters. FTI Consulting Inc. served as
financial advisors to the Creditors Committee. Elihu Inselbuch,
Esq., at Caplin & Drysdale, Chartered, represented the Asbestos
Committee. Legal Analysis Systems, Inc., served as asbestos
valuation analyst.
The Bankruptcy Court entered an order confirming the Debtors'
Second Amended Joint Chapter 11 Plan on March 29, 2011. The Plan
was declared effect on March 31.
On Dec. 15, 2011, Motors Liquidation Company was dissolved. On
the Dissolution Date, pursuant to the Plan and the Motors
Liquidation Company GUC Trust Agreement, dated March 30, 2011,
between the parties thereto, the trust administrator and trustee
-- GUC Trust Administrator -- of the Motors Liquidation Company
GUC Trust, assumed responsibility for the affairs of and certain
claims against MLC and its debtor subsidiaries that were not
concluded prior to the Dissolution Date.
As of June 30, 2015, Motors Liquidation had $860 million in total
assets, $74 million in total liabilities and $786 million in net
assets in liquidation.
NYC CONSTRUCTORS: Voluntary Chapter 11 Case Summary
---------------------------------------------------
Debtor affiliates filing separate Chapter 11 bankruptcy petitions:
Debtor Case No.
------ --------
NYC Constructors Inc. 16-10069
110 East 42nd Street
Suite 1502
New York, NY 10017
MRP, LLC 16-10070
Chapter 11 Petition Date: January 14, 2016
Court: United States Bankruptcy Court
Southern District of New York (Manhattan)
Judge: Hon. Shelley C. Chapman
Debtors' Counsel: Scott S. Markowitz, Esq.
TARTER KRINSKY & DROGIN LLP
1350 Broadway, 11th Floor
New York, NY 10018
Tel: (212) 216-8000
Fax: 212-216-8001
Email: smarkowitz@tarterkrinsky.com
Debtors' GETZLER HENRICH & ASSOCIATES LLC
Financial
Advisor:
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Barry King, president.
The Debtor did not include a list of its largest unsecured
creditors when it filed the petition.
OFFSHORE GROUP: Receives Court Approval of Prepackaged Plan
-----------------------------------------------------------
Offshore Group Investment Limited on Jan. 15 disclosed that the
Company and its affiliated chapter 11 debtors have received court
approval of their prepackaged restructuring and recapitalization
plan pursuant to an order dated January 15, 2016.
"The Court's confirmation of our Prepackaged Plan marks an
important milestone in our path to emerge from chapter 11 and
secure our future as a robust, well-capitalized offshore drilling
services provider. We will continue to provide our customers with
industry-leading expertise and safe, efficient drilling services,
as is our norm," said Paul Bragg, Chief Executive Officer. "The
senior management team and I sincerely appreciate the ongoing
support of our customers, suppliers, and stakeholders, as well as
the unrelenting dedication of our employees, which together have
allowed us to continue our operations in the normal course
throughout this process."
Among other things, the Prepackaged Plan eliminates more than $1.5
billion of senior secured debt and most cash interest. More
specifically, the Prepackaged Plan provides for a debt-for-equity
swap that will result in existing term loan lenders and secured
noteholders converting their loans and notes into equity and a pro
rata share of $750 million of senior subordinated convertible
notes. The new notes will pay interest through the issuance of
additional notes (PIK notes) and will have no cash interest burden.
Holders of indebtedness under OGIL's asset-backed revolving credit
facility will execute an amended and restated senior secured term
loan and letter of credit facility and will receive a payment of $7
million in cash. OGIL also completed a fully backstopped rights
offering of senior secured second lien notes with an aggregate
offering amount of up to $75 million. All customer, vendor, and
employee obligations associated with the ongoing business will
remain unaffected.
Weil, Gotshal & Manges LLP is serving as legal counsel and Lazard
Freres & Co. LLC is serving as investment banker to OGIL. Alvarez
& Marsal North America, LLC is serving as financial adviser to
OGIL.
About Offshore Group
Offshore Group Investment Limited is an international offshore
drilling company operating a fleet of modern, high-specification
drilling units around the world. Its principal business is to
contract their drilling units, related equipment, and work crews to
drill underwater oil and natural gas wells for major, national, and
independent oil and natural gas companies.
Offshore Group Investment Limited and 23 other units of publicly
traded Vantage Drilling Company filed Chapter 11 bankruptcy
petitions (Bankr. D. Del. Lead Case No. 15-12421) on Dec. 3, 2015
to pursue a prepackaged restructuring backed by Vantage.
Christopher G. DeClaire, the authorized officer, signed the
petition.
The Debtors have engaged Weil, Gotshal & Manges LLP as counsel;
Richards, Layton & Finger, P.A. as co-counsel; Lazard Freres & Co.
LLC as investment banker; Alvarez & Marsal North America, LLC, as
restructuring advisor; and Epiq Bankruptcy Solutions, LLC as claims
and noticing agent.
OW BUNKER: Wants Bid to Convert Cases to Chapter 7 Denied
---------------------------------------------------------
O.W. Bunker Holding North America Inc., et al., asked the U.S.
Bankruptcy Court for the District of Connecticut to deny NuStar
Energy Services, Inc., NuStar Supply & Trading LLC, and NuStar
Terminals Marine Services N.V.'s motion to convert their Chapter 11
cases to those under Chapter 7 of the Bankruptcy Code.
According to the Debtors, the motion has been rendered moot. The
sole basis for which NuStar believed the motion must be granted was
the Debtors' failure to file a confirmable plan, the Debtors said.
The Debtors noted that they have not only filed but actively
pursued and received overwhelming support for the Plan, which
resolves the litigation the Debtors commenced against ING Bank N.V.
in a manner which significantly benefits their estates and
creditors.
In light of the settlement with NuStar and NuStar's obvious support
for the Plan, the motion should be withdrawn or at a minimum
adjourned until after the anticipated effective date of the Plan.
As reported by the Troubled Company Reporter on Nov. 20, 2015,
NuStar on Oct. 5 asked the court to convert the cases, saying the
companies are "administratively insolvent."
In its motion, NuStar said the holding company does not have assets
while its two affiliates O.W. Bunker North America Inc. and O.W.
Bunker USA Inc. have no ongoing business to reorganize.
Administrative claims amounting to $21 million also exceed the cash
on hand in both O.W. Bunker affiliates. O.W. Bunker North America
has only $1.19 million in cash while O.W. Bunker USA has only
$21,281 in cash, NuStar said in the filing.
The company also argued that there is "no possibility of plan
confirmation," which warrants the conversion of the bankruptcy
cases.
About O.W. Bunker
OW Bunker AS is a global marine fuel (bunker) company founded in
Denmark. The company declared bankruptcy on Nov. 7, 2014,
following its admission that it had lost US$275 million through a
combination of fraud committed by senior executives at its
Singaporean unit.
The Danish company placed its U.S. subsidiaries -- O.W. Bunker
Holding North America Inc., O.W. Bunker North America Inc. and
O.W.
Bunker USA Inc. -- in Chapter 11 bankruptcy (Bankr. D. Conn. Case
Nos. 14-51720 to 14-51722) in Bridgeport, Conn., on Nov. 13, 2014.
The U.S. cases are assigned to Judge Alan H.W. Shiff. The U.S.
Debtors have tapped Patrick M. Birney, Esq., and Michael R.
Enright, Esq., at Robinson & Cole LLP, as counsel. McCracken,
Walker & Rhoads LLP is serving as co-counsel. Alvarez & Marsal is
the financial advisor.
PRIMORSK INT'L: Case Summary & 30 Largest Unsecured Creditors
-------------------------------------------------------------
Debtor affiliates filing separate Chapter 11 bankruptcy petitions:
Debtor Case No.
------ --------
Primorsk International Shipping Limited 16-10073
aka PISL
Kermia House, Diagorou St.
6th Floor, Office 601
Nicosia, PC 1097
Cyprus
Boussol Shipping Limited 16-10074
Malthus Navigati on Limited 16-10075
Jixandra Shipping Limited 16-10076
Levaser Navigation Limited 16-10077
Hermine Shipping Limited 16-10078
Laperouse Shipping Limited 16-10079
Prylotina Shipping Limited 16-10080
Baikal Shipping Ltd 16-10081
Vostok Navigation Ltd 16-10082
Type of Business: Transportation & Logistics
Chapter 11 Petition Date: January 15, 2016
Court: United States Bankruptcy Court
Southern District of New York (Manhattan)
Judge: Hon. Martin Glenn
Debtors' Counsel: Andrew G. Dietderich, Esq.
SULLIVAN & CROMWELL LLP
125 Broad Street
New York, NY 10004
Tel: (212) 558-3830
Fax: (212) 291-9041
Email: dietdericha@sullcrom.com
Debtors' ALIXPARTNERS, LLP
Financial and
Restructuring
Advisor:
Estimated Assets: $100 million to $500 million
Estimated Debts: $100 million to $500 million
The petition was signed by Holly Felder Etlin, chief restructuring
officer.
Consolidated List of Debtors' 30 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Nordic Trustee ASA Bond Debt $80,866,877
Postboks 1470 Vika
0116 Oslo
Norway
Att: Mr. Jo Forfang
Telefax No: +47 22 87 94 I 0
BNP Paribas Fortis Legal Fees $91,632
Montagne du Parc 3, B-1000
Bruxelles Warandeberg 3, B-1000
Brussel
+ 32 2 433 40 34
+ 32 2 565 42 22
Nordea Bank Oslo Legal Fees $82,154
Wrist Ship Supply - World Ship Texas Trade $37,691
Inmarsat – ex Stratos Trade
$33,054
Prisco (Singapore) Pte. Ltd Management $32,540
Fee
Kuwait Oil Tanker CO SAK Agent $31,688
MAN Diesel & TURBO Trade $18,303
MedPool Fameline Building Trade $12,854
ALCAP Ship Supplies Trade $12,390
Gulf Marine & Industrial Supplies Trade $11,372
Dae Hwa Trade $11,125
Wilhelmsen Ships Service (ex Barwil Trade $9,893
Un)
Legero Holland Trade $9,410
DH Marine Tech Trade $9,253
Dintec (Singapore) Pte Ltd Trade $8,215
Consilium Marine&Safety AB Trade $8,039
(Sweden)
Lankhorst Touwfabrieken Bv Trade $6,494
Neko Ship Supply BV Trade $5,799
Jinsan Marine Management co ltd Trade $5,702
Marflex BV - The Netherlands Trade $5,535
KET Marine International BV Trade $5,387
Berg & Larsen Trade $5,005
Ocean MV Trade $4,808
UMC International (SE ASIA) Trade $4,745
Exway GLS Co., Ltd Trade $4,481
Seven Seas Shipchandlers Trade $4,479
Kyong-in-Safety Services Co., Ltd Trade $4,460
Wartila Trade $4,037
Dubai Investment Park, 598-1121 Trade $3,651
PROGRESS ENERGY: Moody's Cuts Preferred Shelf Rating to (P)Ba1
--------------------------------------------------------------
Moody's Investors Service downgraded the long-term ratings of Duke
Energy Corporation (Duke) to Baa1 senior unsecured from A3,
Progress Energy, Inc. (Progress) to Baa2 senior unsecured from
Baa1, and Duke Energy Progress, LLC to A2 Issuer Rating from A1.
The rating outlook of Duke is negative. The rating outlooks of
Progress and Duke Energy Progress are stable. Moody's affirmed
Duke's Prime-2 short-term rating for commercial paper and affirmed
the ratings of subsidiaries Duke Energy Carolinas, LLC (A1 senior
unsecured), Duke Energy Florida, Inc. (A3 senior unsecured), Duke
Energy Indiana, Inc. (A2 senior unsecured), Duke Energy Ohio, Inc.
(Baa1 senior unsecured), and Duke Energy Kentucky, Inc. (Baa1
senior unsecured) with stable outlooks.
RATING RATIONALE
"The downgrade of Duke is prompted by weak consolidated financial
metrics, a high level of debt at the Duke holding company, and the
pending acquisition of Piedmont Natural Gas Company, Inc. (A2
stable), which will worsen these credit factors" said Michael G.
Haggarty, Associate Managing Director. Duke's CFO pre-working
capital to debt could fall below 15% from the high teens and parent
company leverage increase to approximately 35% of total
consolidated debt from 30% following the acquisition, increasing
credit risk. Although Piedmont is a relatively low risk natural gas
utility that will modestly increase the proportion of regulated
activities in Duke's overall business mix, the $7 billion
acquisition will be primarily debt financed, increasing the level
of risk to Duke bondholders. The negative rating action is also
driven by the downgrade of one of its two largest utility
subsidiaries, Duke Energy Progress; high planned capital spending
at the Duke parent company for pipeline, renewable and potentially
additional gas infrastructure investments that will lead to
additional leverage; and the company's higher risk, more volatile
international business, which has underperformed in recent years.
The negative outlook on Duke's rating reflects our view that cash
flow coverage of debt could stay in the low to mid-teens while
parent company debt levels remain elevated for an extended period,
eventually positioning the company more appropriately at the Baa2
rating level. The negative outlook considers the primarily debt
financed nature of the Piedmont acquisition, uncertainty over how
and when this debt will be reduced, the lack of a definitive plan
to improve financial metrics to offset the incremental leverage,
the limited amount of equity ($500 to $750 million) being issued,
and Duke's plans to use Piedmont as a platform for further
expansion into gas infrastructure, potentially adding additional
debt.
Duke's rating could be downgraded if we expect parent company debt
levels will remain around 35% of total consolidated debt for an
extended period, CFO pre-working capital to debt does not improve
from the 15% range, the Piedmont acquisition closes with debt
financing as currently envisioned, or there are additional debt
financed acquisitions.
The downgrade of Carolina utility Duke Energy Progress to A2
reflects cash flow coverage metrics that we expect to decline from
previous levels due to increased O&M expenses and higher debt
incurred for coal ash basin remediation and other capital
expenditures. Of Duke's two Carolina utilities, Duke Energy
Progress has proportionally more coal ash basin remediation to
address. It also recently completed the debt financed acquisition
of generating assets from the North Carolina Eastern Municipal
Power Agency (NCEMPA) for $1.2 billion, which closed on 31 July
2015. We expect the utility's pre-working capital to debt ratio to
fall to the 20% range from the around 25% historically, which would
be below the parameters outlined for an A rating under our
Regulated Electric and Gas Utilities Rating Methodology.
The stable outlook reflects the utility's relatively low business
risk profile, credit supportive regulatory frameworks in both North
and South Carolina, and metrics that should remain in the 20% or
above range. It reflects our expectation that its growing capital
expenditure program will remain manageable and that debt to
capitalization will remain at the current levels. The stable
outlook also considers our expectation that the utility will be
able to recover all of its coal ash basin closure and remediation
costs in rates, although regulatory lag in the recovery of these
costs will likely pressure the metrics to a modest degree.
The downgrade of intermediate holding company Progress to Baa2
reflects the downgrade of Duke Energy Progress, its largest utility
subsidiary; the downgrade of parent company Duke, which provides
Progress with liquidity support through a $2.5 billion revolving
credit agreement; and the high level of debt at the Progress level,
which is being gradually refinanced at the Duke parent company.
The stable outlook on Progress reflects the stable outlook on its
two regulated utility subsidiaries; consolidated financial metrics
that are expected to remain in the mid to high teens that are
adequate for the Baa2 rating; and our expectation that debt at the
Progress level will gradually be reduced.
The affirmation of the ratings and stable outlook of Duke's largest
utility subsidiary, Duke Energy Carolinas, reflects the utility's
credit supportive regulatory environments in North and South
Carolina despite scrutiny over the coal ash spill at its Dan River
coal ash basin in 2014. It also reflects improving financial
metrics that are expected to remain robust for the rating going
forward, including CFO pre-working capital to debt of nearly 30% in
2014. Although operating under largely the same regulatory
framework as affiliate utility Duke Energy Progress, Duke Energy
Carolinas exhibits better cash flow coverage metrics, more
resilient retail sales volumes, proportionally lower coal ash
remediation costs, and is not undertaking any significant
generating asset purchases.
The affirmation of the ratings and stable outlook of Duke Energy
Florida considers the credit supportive Florida regulatory
framework and improving financial coverage metrics over the last
three years (26.7% CFO pre-working capital to debt in 2014) despite
some regulatory lag and a base rate freeze in place related to its
retired Crystal River 3 (CR3) nuclear plant. The company has
received approval to securitize some of its CR3 costs, which will
weaken cash flow to debt metrics but also reduce the pressure from
CR3 on customer rates, which are among the highest among the
state's investor owned utilities.
The affirmation of the ratings and stable outlook of Duke Energy
Indiana reflects the completion and operation of the Edwardsport
IGCC plant, a regulatory settlement reached in 2015 that would
provide clarity on the recovery of Edwardsport plant costs if
approved, a credit supportive regulatory framework in Indiana, and
improving financial metrics (CFO pre-working capital to debt of
26.2% in 2014) as a result of declining capital expenditures and
the implementation of IGCC rider recovery mechanisms.
The affirmation of the ratings and stable outlook of Duke Energy
Ohio considers its lower business and operating risk profile
following the sale of its generating assets, which has transformed
the utility into a fully regulated transmission and distribution
utility. Although business risk has diminished, we expect financial
metrics (23.2% CFO pre-working capital to debt in 2014) to decline
to levels appropriate for high Baa-rated transmission and
distribution utilities considering the key financial metrics in our
Regulated Electric and Gas Utilities rating methodology, including
CFO pre-working capital to debt in the 17% to 18% range over the
next several years.
The affirmation of the ratings and stable outlook of Duke Energy
Kentucky considers its historically credit supportive regulation
and declining cash flow generation and financial coverage metrics
that remain adequate for its Baa1 rating (20.7% CFO pre-working
capital to debt in 2014). The utility's rating is constrained by
its small size and position as a wholly-owned subsidiary of Duke
Energy Ohio, as well as the base rate freeze that has been in
place.
The principal methodology used in rating these issuers was
Regulated Electric and Gas Utilities published in December 2013.
Please see the Credit Policy page on www.moodys.com for a copy of
this methodology.
Downgrades:
-- Issuer: Duke Energy Corporation
-- Issuer Rating, Downgraded to Baa1 from A3
-- Junior Subordinated Regular Bond/Debenture, Downgraded to Baa2
from Baa1
-- Senior Unsecured Shelf, Downgraded to (P)Baa1 from (P)A3
-- Subordinate Shelf, Downgraded to (P)Baa2 from (P)Baa1
-- Senior Unsecured Bank Credit Facility, Downgraded to Baa1 from
A3
-- Senior Unsecured Medium-Term Note Program, Downgraded to
(P)Baa1 from (P)A3
-- Senior Unsecured Regular Bond/Debenture, Downgraded to Baa1
from A3
-- Issuer: Duke Energy Progress, LLC
-- Issuer Rating, Downgraded to A2 from A1
-- Subordinate Shelf, Downgraded to (P)A3 from (P)A2
-- Senior Unsecured Shelf, Downgraded to (P)A2 from (P)A1
-- Senior Secured Shelf, Downgraded to (P)Aa3 from (P)Aa2
-- Senior Secured First Mortgage Bonds, Downgraded to Aa3 from
Aa2
Issuer: Progress Energy Capital Trust II
-- Pref. Stock Shelf, Downgraded to (P)Baa3 from (P)Baa2
Issuer: Progress Energy, Inc.
-- Preferred Shelf, Downgraded to (P)Ba1 from (P)Baa3
-- Junior Subordinate Shelf, Downgraded to (P)Baa3 from (P)Baa2
-- Senior Unsecured Shelf, Downgraded to (P)Baa2 from (P)Baa1
-- Senior Unsecured Regular Bond/Debenture, Downgraded to Baa2
from Baa1
Issuer: Wake County I.F. & P.C.F.A., NC (The)
-- Senior Secured Revenue Bonds, Downgraded to Aa3 from Aa2
Outlook Actions:
Issuer: Duke Energy Carolinas, LLC
-- Outlook, Remains Stable
Issuer: Duke Energy Corporation
-- Outlook, Changed To Negative From Rating Under Review
Issuer: Duke Energy Florida, Inc.
-- Outlook, Remains Stable
Issuer: Duke Energy Indiana, Inc.
-- Outlook, Remains Stable
Issuer: Duke Energy Kentucky, Inc.
-- Outlook, Remains Stable
Issuer: Duke Energy Ohio, Inc.
-- Outlook, Remains Stable
Issuer: Duke Energy Progress, LLC
-- Outlook, Changed To Stable From Rating Under Review
Issuer: Progress Energy Capital Trust II
-- Outlook, Changed To Stable From Rating Under Review
Issuer: Progress Energy, Inc.
-- Outlook, Changed To Stable From Rating Under Review
Affirmations:
Issuer: Boone (County of) KY
-- Senior Unsecured Revenue Bonds, Affirmed Baa1
Issuer: Citrus (County of) FL
-- Senior Secured Revenue Bonds, Affirmed A1
Issuer: Duke Energy Carolinas, LLC
-- Issuer Rating, Affirmed A1
-- Subordinate Shelf, Affirmed (P)A2
-- Senior Unsecured Shelf, Affirmed (P)A1
-- Senior Secured Shelf, Affirmed (P)Aa2
-- Senior Secured First Mortgage Bonds, Affirmed Aa2
-- Senior Secured Medium-Term Note Program, Affirmed (P)Aa2
-- Senior Unsecured Regular Bond/Debenture, Affirmed A1
Issuer: Duke Energy Corporation
-- Senior Unsecured Commercial Paper, Affirmed P-2
Issuer: Duke Energy Florida, Inc.
-- Issuer Rating, Affirmed A3
-- Senior Secured Shelf, Affirmed (P)A1
-- Senior Unsecured Shelf, Affirmed (P)A3
-- Subordinate Shelf, Affirmed (P)Baa1
-- Senior Secured First Mortgage Bonds, Affirmed A1
-- Senior Unsecured Regular Bond/Debenture, Affirmed A3
Issuer: Duke Energy Indiana, Inc.
-- Issuer Rating, Affirmed A2
-- Senior Unsecured Shelf, Affirmed (P)A2
-- mSenior Secured Shelf, Affirmed (P)Aa3
-- Senior Secured First Mortgage Bonds, Affirmed Aa3
-- Senior Secured Regular Bond/Debenture, Affirmed Aa3
-- Senior Unsecured Regular Bond/Debenture, Affirmed A2
Issuer: Duke Energy Kentucky, Inc.
-- Senior Unsecured Regular Bond/Debenture, Affirmed Baa1
-- Issuer: Duke Energy Ohio, Inc.
-- Issuer Rating, Affirmed Baa1
-- Senior Secured Shelf, Affirmed (P)A2
-- Senior Unsecured Shelf, Affirmed (P)Baa1
-- Senior Secured First Mortgage Bonds, Affirmed A2
-- Senior Unsecured Regular Bond/Debenture, Affirmed Baa1
Issuer: Indiana Finance Authority
-- Senior Secured Revenue Bonds, Affirmed Aa3
-- Senior Unsecured Revenue Bonds, Affirmed A2
-- Senior Unsecured Revenue Bonds, Affirmed VMIG 1
-- Senior Unsecured Revenue Bonds, Affirmed A2
-- Issuer: North Carolina Capital Facilities Fin. Agy.
-- Senior Secured Revenue Bonds, Affirmed Aa2
-- Senior Unsecured Revenue Bonds, Affirmed A1
Issuer: Oconee (County of) SC
-- Senior Secured Revenue Bonds, Affirmed Aa2
-- Senior Unsecured Revenue Bonds, Affirmed A1
-- Senior Unsecured Revenue Bonds, Affirmed P-1
Issuer: Ohio Air Quality Development Authority
-- Senior Unsecured Revenue Bonds, Affirmed Baa1
-- Senior Unsecured Revenue Bonds, Affirmed VMIG 2
Issuer: Ohio Water Development Authority
-- Senior Unsecured Revenue Bonds, Affirmed Baa1
Issuer: Person County Industrial Facilities & P
-- Senior Secured Revenue Bonds, Affirmed Aa2
Issuer: Princeton (City of) IN
-- Senior Unsecured Revenue Bonds, Affirmed A2
Issuer: Wake County I.F. & P.C.F.A., NC (The)
-- Senior Secured Revenue Bonds, Affirmed Aa2
Duke Energy Corporation is a holding company for intermediate
holding company Progress Energy, Inc., and regulated utilities Duke
Energy Carolinas, LLC, Duke Energy Progress, Inc., Duke Energy
Florida, Inc., Duke Energy Indiana, Inc., Duke Energy Ohio, Inc.
and Duke Energy Kentucky, Inc. as well as a renewable power
business in the US and international business activities in Central
and South America. Duke Energy is headquartered in Charlotte, North
Carolina.
PROSPECT HOLDING: S&P Alters Outlook to Developing on Sale Plans
----------------------------------------------------------------
Standard & Poor's Ratings Services said it revised its outlook on
Prospect Holding Co. LLC to developing from negative. At the same
time, S&P affirmed its 'CCC+' ratings on Prospect.
"The outlook revision follows Prospect's announcement that it plans
to sell substantially all of its mortgage servicing rights and to
explore financial and business strategies," said Standard & Poor's
credit analyst Stephen Lynch.
The company stated that proceeds from the sale "may be used for a
range of strategic business options related to the ongoing growth
and operations of Prospect's business or financial and balance
sheet management opportunities." As of Sept. 30, 2015, Prospect
had MSRs valued at $91.5 million and senior unsecured notes with a
face value of $150 million. The company’s adjusted total equity
was $62.4 million.
Prospect has struggled to remain profitable over the past two
years, and it has relied on selling MSRs for operating liquidity.
S&P generally views MSRs favorably because they provide a more
stable source of income to the more volatile originations platform.
At the same time, S&P recognizes MSRs can have swings in market
valuations as a result of changes in interest rates and prepayment
speeds.
The indentures to Prospect's senior unsecured notes allow, in S&P's
opinion, a considerable amount of flexibility on how the proceeds
can be used within the 365 days after the receipt of net proceeds.
However, if the company chooses to use the proceeds to pay down its
senior unsecured notes, it must do so at 100% of the principal
amount, pursuant to the terms of the indenture document.
S&P would likely lower its existing '4H' recovery rating on the
company's senior unsecured notes to '5' or '6' if the company does
not use substantially all of the proceeds to pay down its senior
unsecured notes. In S&P's opinion, Prospect's portfolio of MSR
assets provided a steady stream of earnings that could be
leveraged, to a degree. Absent a clear and credible plan to
immediately replace such earnings, S&P would likely lower its
issue-level rating on the senior unsecured notes to 'CCC' or
'CCC-' from 'CCC+'.
"The developing outlook reflects our uncertainty over how the
company could choose to redeploy the proceeds from an MSR asset
sale, which could be up to 365 days following the receipt of
proceeds," said Mr. Lynch.
S&P would likely lower the rating on Prospect if the company does
not use a substantial amount of the proceeds to pay down its senior
unsecured notes or if the company faces liquidity pressure, funding
uncertainty, or sustained operating losses over the next 12
months.
Although less likely, S&P could raise its rating on Prospect, or
revise the outlook to positive, if the company uses substantially
all of the proceeds to pay down its senior unsecured notes. An
upgrade would also largely depend on the company demonstrating that
it can remain consistently profitable.
S&P could also revise its outlook to negative or stable, and affirm
the 'CCC+' rating, if the company splits the proceeds in such a way
that both substantially lowers its debt and redeploys capital into
an immediate income-generating opportunity without altering the
company's risk profile.
QUIKSILVER INC: Said to Seek Bankruptcy Exit Financing
------------------------------------------------------
Jodi Xu Klein, writing for Bloomberg Brief - Distress & Bankruptcy,
reported that Quiksilver Inc., the bankrupt surfwear retailer, is
in talks with banks for a loan that would help finance its business
after it exits bankruptcy, according to two people with knowledge
of the matter.
Bank of America Corp. and JPMorgan Chase & Co. are among lenders
discussing an asset-backed credit line for the company, according
to the Bloomberg report, citing the people, who asked not to be
named because the discussions aren't public. The revolving loan
may be $125 million to $150 million, and the company may seek a
term loan as well, the people said, Bloomberg related.
Obtaining the loan is crucial to ensuring that Huntington Beach,
California-based Quiksilver gets final court approval for its
growth plan after it emerges from bankruptcy, the Bloomberg report
pointed out. A hearing is scheduled for the end of January, and
the company expects to exit court protection shortly after Judge
Brendan Shannon signs off on the proposal, the report said.
John Christiansen, a spokesman for Oaktree at Sard Verbinnen & Co.,
and Tasha
Pelio, a spokeswoman at JPMorgan, declined to comment. Julia
Young, a spokeswoman for Quiksilver at ICR Inc., and John
Yiannacopoulos, a spokesman at Bank of America, didn’t
immediately respond to e-mails and phone calls seeking comment.
About Quiksilver Inc.
Quiksilver, Inc., and its affiliates filed Chapter 11 bankruptcy
petitions (Bankr. D. Del., Case Nos. 15-11880 to 15-11890) on
Sept. 9, 2015. Andrew Bruenjes signed the petition as chief
financial officer. The Debtors disclosed total assets of $337
million and total debts of $826 million.
Skadden, Arps, Slate, Meagher & Flom LLP is serving as the
Debtors' legal advisor, FTI Consulting, Inc. as their
restructuring advisor, and Peter J. Solomon Company as their
investment banker. Kurtzman Carson Consultants LLC acts as the
Debtors' claims and noticing agent.
The Debtors' First Amended Joint Chapter 11 Plan of Reorganization
provides that on the effective date, Reorganized Quiksilver will
issue new common stock to be distributed as follows: (a) first, 19%
to holders of Allowed Secured Notes Claims; (b) second, up to 77%
to Rights Offering Participants; and (c) third, 4% to the Backstop
Parties. As of the Effective Date, the anticipated value of the
New Quiksilver Common Stock will be approximately $276 million.
The U.S. trustee overseeing the Chapter 11 cases of Quiksilver
Inc. and its affiliates appointed seven members to the official
committee of unsecured creditors. The Committee tapped Akin Gump
Strauss Hauer & Feld LLP, and Pepper Hamilton LLP as its
co-counsel as co-counsel; Province Inc. as its financial advisor
and PJT Partners Inc. as investment banker.
RESPONSE BIOMEDICAL: CEO to Receive $350,000 Annual Salary
----------------------------------------------------------
Response Biomedical Corp. entered into an employment agreement with
Dr. Barbara Kinnaird, the Company's chief executive officer,
effective as of Dec. 22, 2015.
Dr. Kinnaird will initially be paid a base salary of $350,000, and
is eligible to participate in the Company's RSU Plan and to be
granted options pursuant to the terms of the Company's Amended and
Restated 2008 Stock Option Plan, as well as a signing bonus of
$1,000. She is also eligible to participate in our short-term
incentive plan with a target incentive bonus, currently set at 40%
of her base salary, based on corporate and personal objectives, and
she is also eligible to participate in the Company's employee
medical, dental and life insurance plans.
About Response Biomedical
Based in Vancouver, Canada, Response Biomedical Corporation
develops, manufactures and sells diagnostic tests for use with its
proprietary RAMP(R) System, a portable fluorescence immunoassay-
based diagnostic testing platform. The RAMP(R) technology
utilizes a unique method to account for sources of error inherent
in conventional lateral flow immunoassay technologies, thereby
providing the ability to quickly and accurately detect and
quantify an analyte present in a liquid sample. Consequently, an
end-user on-site or in a point-of-care setting can rapidly obtain
important diagnostic information. Response Biomedical currently
has thirteen tests available for clinical and environmental
testing applications and the Company has plans to commercialize
additional tests.
Response Biomedical reported a net loss and comprehensive loss of
C$5.99 million in 2013, a net loss and comprehensive loss of C$5.28
million in 2012 and a net loss and comprehensive loss of C$5.37
million in 2011.
As of Sept. 30, 2015, the Company had C$12.6 million in total
assets, C$13.6 million in total liabilities and a total
shareholders' deficit of C$992,000.
PricewaterhouseCoopers LLP, in Vancouver, Canada, in its report on
the consolidated financial statements for the year ended Dec. 31,
2014, noted that the company has incurred recurring losses from
operations and has an accumulated deficit at Dec. 31, 2014, which
raises substantial doubt about its ability to continue as a going
concern.
RESPONSE GENETICS: Conway MacKenzie's Matz Okayed as CRO
--------------------------------------------------------
Response Genetics, Inc., sought and obtained permission from the
Hon. Laurie S. Silverstein of the U.S. Bankruptcy Court for the
District of Delaware to employ Conway MacKenzie Management
Services, LLC to provide Benjamin J. Matz as chief restructuring
officer, additional personnel and financial advisory and
restructuring-related services, nunc pro tunc to the August 9, 2015
petition date.
The Debtor requires Conway MacKenzie to:
-- provide oversight and support to the Company's other
professionals in connection with restructuring efforts;
-- provide oversight and assistance with the preparation of a
13-week cash flow forecast, evaluate short-term liquidity
requirements of the Company;
-- prepare actual versus projected cash flow variance analyses
requested by the secured lenders and/or creditors
committee;
-- provide oversight and assistance with the preparation of
Monthly Operating Reports;
-- assist the Company through the proposed sale under Section
363 of the Bankruptcy Code, or, in the alternative, assist
in the development in a potential plan of liquidation or
plan of reorganization and in the preparation of
information and analysis necessary for the confirmation of
a plan;
-- as necessary, provide oversight and assistance with the
preparation of financial related disclosures required by
the Court including the Schedules of Assets and
Liabilities, the Statement of Financial Affairs and Monthly
Operating Reports, if necessary;
-- as necessary, provide oversight and assistance with the
preparation of financial information for distribution to
creditors and others, including, but not limited to, cash
flow projections and budgets, cash receipts and
disbursements analysis of various asset and liability
accounts, and analysis of proposed transactions for which
Court approval is sought;
-- participate in meetings and provide assistance to potential
investors, potential lenders, any official committee
appointed in connection with bankruptcy if necessary, the
U.S. Trustee if necessary, other parties in interest and
professionals hired by same, as requested;
-- assist in preparing and filing of a petition for a Chapter
11 case and related first day motions, including, but not
limited to: use of cash collateral, maintenance of cash
management system, payments to critical vendors,
continuance of employee benefit programs, payment of
employee compensation, and motion to prohibit utilities
from discontinuing services;
-- provide oversight and assistance with the preparation of
creditor claims by type, entity, and/or individual claims,
including assistance with the development of databases, as
necessary, to track claims;
-- provide oversight and assistance with the evaluation and
analysis of avoidance actions, including fraudulent
conveyances end preferential transfers, if necessary;
-- provide testimony in litigation or bankruptcy matters as
needed;
-- evaluate the cash-flow generation capabilities of the
Company for valuation maximization opportunities;
-- provide oversight and assistance in connection with
communications and negotiations with constituents including
trade vendors, investors and other critical constituents to
the successful execution of the Company's near-term
business plan;
-- assist in development of a plan of reorganization and in
the preparation of information and analysis necessary for
the confirmation of a plan in these chapter 11 proceedings,
if necessary; and
-- perform other tasks as agreed to among CMS, the Company
and/or counsel to the Company.
Mr. Matz and the Additional Personnel from Conway MacKenzie have
agreed to be paid according to the following fee structure:
Benjamin J. Matz, CRO $425
Jeffrey C. Perea, Restructuring Manager $495
Patrick S. Cheng, Restructuring Manager $450
Managing and Senior Managing Directors $495-$795
Sebuir Associates and Directors $300-$450
Conway MacKenzie will also be reimbursed for reasonable
out-of-pocket expenses incurred.
Benjamin J. Matz, director of Conway MacKenzie, 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.
Conway MacKenzie can be reached at:
Benjamin J. Matz
CONWAY MACKENZIE MANAGEMENT SERVICES, LLC
333 South Hope St, Suite 3625
Los Angeles, CA 90071
Tel: (213) 416-6200
Fax: (213) 416-6201
About Response Genetics
Los Angeles, California-based Response Genetics, Inc.
(otcqb:RGDX)-- http://www.responsegenetics.com-- is a
CLIA-certified clinical laboratory focused on the development and
sale of molecular diagnostic testing services for cancer. The
Company's technologies enable extraction and analysis of genetic
information derived from tumor cells stored as formalin-fixed and
paraffin-embedded specimens. The Company's principal customers
include oncologists and pathologists. In addition to diagnostic
testing services, the Company generates revenue from the sale of
its proprietary analytical pharmacogenomic testing services of
clinical trial specimens to the pharmaceutical industry.
Response Genetics, fdba Bio Type, Inc., filed for Chapter 11
bankruptcy (Bankr. D. Del. Case No. 15-11663) on Aug. 9, 2015,
represented by James E. O'Neill, Esq., at Pachulski Stang Ziehl &
Jones LLP. Canaccord Genuity, Inc., serves as its investment
banker; and Rust Consulting Omni Bankruptcy acts as its claims and
noticing agent.
The Company disclosed total assets of $10.7 million and total debts
of $15.7 million. The petition was signed by Thomas Bologna,
chairman and chief executive officer.
No request has been made for the appointment of a trustee or an
examiner in the cases, and no official committee has yet been
appointed by the Office of the U.S. Trustee.
* * *
Response Genetics executed a "stalking horse" agreement to sell all
of its business assets to Cancer Genetics, Inc., for $14 million,
comprised of a 50/50 split in value of cash and the common stock of
CGI.
CGI is represented by Kramer Levin Naftalis & Frankel LLP's James
A. Grayer, Esq.
RESPONSE GENETICS: Taps GPK to Collect Accounts Receivable
----------------------------------------------------------
Response Genetics, Inc. seeks authorization from the U.S.
Bankruptcy Court for the District of Delaware to employ GPK
Consulting, LLC to collect and disburse proceeds of outstanding
accounts receivable.
GPK will assist the Debtor in collecting outstanding accounts
receivable, the cost of which will be funded by SWK Funding, LLC.
The terms of GPK's employment, including the funding by SWK of
GWK's compensation can be summarized as:
(a) GPK will be reimbursed for its consulting services by
sharing of a percentage (the "Collection Fee") of the
collected Accounts Receivables as follows:
-- 15% of collected Accounts Receivable up to $1,500,000
-- 20% of collected Accounts Receivable between $1,500,001
to $2,500,000
-- 25% of collected Accounts Receivable greater than
$2,500,001
(b) SWK will pay GPK $25,000 monthly for the first and second
month of services and $15,000 for the third month of
services. The foregoing $65,000 will be treated as a draw
against any Collection Fee payable to GPK. The draws shall
be paid by SWK to GPK on the first of each of the first
three months of services.
(c) GPK anticipates hiring four full-time employees for
the first three months, 2 full time employees for fourth
and fifth months, and 1 full time employee for the sixth
month. GPK estimates that the cost associated with hiring
the foregoing employees will be $85,000. SWK will fund
the Employee Expenses as GPK forecast, at the beginning
of each month. The Employee Expenses shall be credited
against any Collection Fee payable to GPK. Nothing herein
shall limit or restrict GPK from changing or revising its
hiring requirements by using more or fewer full or part
time employees.
(d) GPK will incur certain travel expenses in the approximate
amount of $30,000 during the first six months of this
engagement. The payment of the Travel Expenses will be
credited against the Collection Fee.
(e) GPK will incur operational expenses that include office
space, billing software, and other items related to the
collection of the Accounts Receivable estimated to be
$80,000. The funding for the Operational Expenses will be
paid by SWK at the start of each month and will not be
credited against any Collection Fee payable to GPK.
(f) GPK will provide the Debtor and SWK status reports twice
per month. The Status Reports will include forecasted
and actual collections and also summarize collection
strategies and GPK's and the Debtor's efforts to collect
the Accounts Receivable.
(g) SWK will indemnify and hold harmless GPK and its employees
from and against any losses, claims or proceedings,
including, without limitation, damages, judgments,
investigation costs, settlement costs, fines, penalties,
and any other liabilities, costs, fees and expenses
directly or indirectly arising out of the terms of the
Term Sheet; provided, however, SWK shall not be required
to indemnify GPK for Losses arising from GPK's gross
negligence, willful misconduct, or fraud.
GPK can be reached at:
Gary Keeney
GPK CONSULTING, LLC
333 1st Street H313
Seal Beach, Ca 90740
Tel: (714) 642-4139
About Response Genetics
Los Angeles, California-based Response Genetics, Inc.
(otcqb:RGDX)-- http://www.responsegenetics.com-- is a
CLIA-certified clinical laboratory focused on the development and
sale of molecular diagnostic testing services for cancer. The
Company's technologies enable extraction and analysis of genetic
information derived from tumor cells stored as formalin-fixed and
paraffin-embedded specimens. The Company's principal customers
include oncologists and pathologists. In addition to diagnostic
testing services, the Company generates revenue from the sale of
its proprietary analytical pharmacogenomic testing services of
clinical trial specimens to the pharmaceutical industry.
Response Genetics, fdba Bio Type, Inc., filed for Chapter 11
bankruptcy (Bankr. D. Del. Case No. 15-11663) on Aug. 9, 2015,
represented by James E. O'Neill, Esq., at Pachulski Stang Ziehl &
Jones LLP. Canaccord Genuity, Inc., serves as its investment
banker; and Rust Consulting Omni Bankruptcy acts as its claims and
noticing agent.
The Company disclosed total assets of $10.7 million and total debts
of $15.7 million. The petition was signed by Thomas Bologna,
chairman and chief executive officer.
No request has been made for the appointment of a trustee or an
examiner in the cases, and no official committee has yet been
appointed by the Office of the U.S. Trustee.
* * *
Response Genetics executed a "stalking horse" agreement to sell all
of its business assets to Cancer Genetics, Inc., for $14 million,
comprised of a 50/50 split in value of cash and the common stock of
CGI.
CGI is represented by Kramer Levin Naftalis & Frankel LLP's James
A. Grayer, Esq.
SAGECREST II: Court Sustains Objection to Equal's Claim
-------------------------------------------------------
Equal Overseas Consulting, Ltd., filed a proof of claim in
Sagecrest II, LLC's case, based on the Debtor's guarantee of
payments under the Consulting Agreement.
Equal seeks C$1,379,000 for the second fixed retainer consulting
fee and the C$850,000 Commission due after the sale of the
Property. SCII filed an objection to Equal's claim.
SCII supplemented its objection, arguing the unenforceable nature
of the intertwined agreements upon which Equal's claim is based.
SCII argues that had such an arrangement been made in a U.S.
bankruptcy case, it would be a crime. SCII acknowledges that the
first fixed retainer fee was paid but as to the balance claimed in
Equal's POC, it asserts this Court should not lend its imprimatur
to the enforcement of agreements so plainly contrary to United
States law.
In a Memorandum of Decision dated December 23, 2015, which is
available at http://is.gd/vegZObfrom Leagle.com, Judge Alan H.W.
Shiff of the United States Bankruptcy Court for the District of
Connecticut, Bridgeport Division, sustained SCII's objection to
Equal Oversea's claim.
The case is In re: SAGECREST II LLC, SAGECREST FINANCE LLC,
SAGECREST DIXON INC., Chapter 11, Debtors, Case Nos. 08-50754
(AHWS)., 08-50755 (AHWS), 08-50844 (AHWS). Jointly Administered
(Bankr. D. Conn.).
SageCrest II LLC, Debtor, is represented by James Berman, Esq. --
jberman@zeislaw.com -- Zeisler and Zeisler, Douglas J Buncher, Esq.
-- dbuncher@neliganlaw.com -- Neligan Foley LLP, Keith Costa, Esq.
-- Pullman & Comley LLC, Robert S. Friedman, Esq. --
rfriedman@sheppardmullin.com -- Sheppard Mullin Richter & Hampton,
LLP, Mark E McGrath, Esq. -- mmcgrath@sheppardmullin.com --
Sheppard, Mullin, Richter & Hampton, LLP, James P. Muenker, Esq. --
jmuenker@neliganlaw.com -- Neligan Foley LLP, James E. Nealon, Esq.
-- Kelley Drye and Warren, Patrick J Neligan, Esq. --
pneligan@neliganlaw.com -- Neligan Foley LLP, Neil Y. Siegel, Esq.
-- nsiegel@morrisoncohen.com -- Cole Schotz Meisel Forman & Leonard
PA, Douglas S. Skalka, Esq. -- dskalka@npmlaw.com -- Neubert, Pepe,
and Monteith, Eric R Wilson, Esq. -- ewilson@kelleydrye.com --
Kelley Drye & Warren LLP, Craig A Wolfe, Esq. --
cwolfe@kelleydrye.com -- Kelley, Drye & Warren, LLP.
John D. Huber, the Liquidating Trustee, Trustee, is represented by
Raimundo J. Guerra, Esq. -- Cole, Schotz, Meisel, Forman &
Leonard.
U. S. Trustee, U.S. Trustee, represented by Alicia M. Leonhard,
Office of the U.S. Trustee. Steven E. Mackey, Office of the U.S.
Trustee.
About SageCrest II
SageCrest II, LLC, SageCrest Finance, LLC, SageCrest Dixon, Inc.,
SageCrest Holdings Ltd., SCFR and SC Limited are part of a group
of funds commonly known as SageCrest Funds. SageCrest II serves
as the domestic fund within the SageCrest Funds. SCFR and SC
Limited serve as the offshore funds within the SageCrest Funds.
SC II directly on indirectly owns several special purpose entities
that hold (directly or indirectly) specific investments
investments of the SageCrest Funds, including a life insurance
portfolio, specialty finance loans to third parties an real estate
investments.
SC Limited and SCFR are Bermuda exempted companies limited by
shares and are not debtors in the Bankruptcy cases. SC Holdings
is also a Bermuda exempted company limited by shares and is a
wholly owned subsidiary of SC Limited and SCFR.
SageCrest Finance is a Delaware limited liability company that was
formed as a wholly owned subsidiary of SageCrest II on March 22,
2007.
SageCrest Dixon is a special purpose entity within the SageCrest
Funds that owns real property at 900 Dixon Road in Toronto,
Canada, formerly the site of the Constellation Hotel. SageCrest
Dixon is a wholly owned subsidiary of SageCrest Canada Holdings,
Inc., which is a wholly owned subsidiary of SageCrest II.
The Debtors primarily operate through two lines of business:
structured finance and real estate investment and development.
SageCrest Finance and SageCrest II filed Chapter 11 petitions on
August 17, 2008 (Bankr. D. Conn. Case Nos. 08-50755 and 08-50754),
and filings by SageCrest Holdings Limited (Bankr. D. Conn. Case
No. 08-50763) and SageCrest Dixon, Inc. (Bankr. D. Conn. Case No.
08-50844), followed. The cases are jointly administered under
Lead Case No. 08-50754.
The Debtors estimate their assets at $100 million to $500 million.
On Oct. 7, 2008, the United States Trustee appointed a
committee of equity security holders, including in its membership
defendants Topwater Exclusive Fund III, LLC, and Wood Creek Multi-
Asset Fund, LP. The Equity Committee is comprised of former
investors in SageCrest II with all committee members claiming they
redeemed their investments in that debtor. Asserting they are
creditors -- and not equity holders -- of SageCrest II, both
Topwater and Wood Creek resigned from the Equity Committee.
Affiliate Antietam Funding LLC sought Chapter 11 bankruptcy
protection (Bankr. D. Conn. 10-52523) on Oct. 20, 2010. Antietam
Funding LLC estimated assets of $50 million to $100 million and
debts of $100 million to $500 million.
Antietam's primary asset is a portfolio of life insurance
investments.
As reported in the Troubled Company Reporter, competing plans of
reorganization have been proposed in these proceedings.
SAN JOAQUIN HILLS: Moody's Affirms Ba2 Rating on Toll Revenue Bonds
-------------------------------------------------------------------
Moody's affirms the Ba2 rating on the San Joaquin Hills
Transportation Corridor (CA) senior lien toll revenue bonds with a
stable outlook. The rating and outlook take into account stronger
traffic and revenue growth than forecasted and a slower annual debt
service growth rate due to the agency's debt restructuring in 2014.
Fiscal year 2015 annual transactions increased 5.7% to 27.965
million, and toll revenue increased by 12.3% to $131.56 million.
The rating acknowledges the growth in the Orange County service
area economy, which is expected to continue and contribute to
growth traffic growth despite toll increases, but also incorporates
risks associated with the extension of debt maturities by eight
years, the agency's very high debt leverage and escalating debt
structure, and dependence on steady, annual traffic growth and toll
increases to meet targeted debt service coverage ratios (DSCRs).
The rating also takes into account the termination of the
mitigation and loan agreement with Foothill/Eastern TCA (F/E TCA),
and the expectation that $120 million in mitigation payments will
be reimbursed to F/ETC from excess cash flow at the bottom of the
flow of funds starting in 2025, though there is no obligation to do
so if excess cash flows are not available. This payment could
constrain the agency's ability to build liquidity.
Moody's said, "We note the recent strong traffic growth due to
service area economic expansion following the recession, coupled
with low gas prices. While this growth plus annual toll rote
increases has produced better than previously forecasted DSCRs, a
longer track record of traffic recovery and revenue performance
would be informative with respect to longer term trajectories
before considering any upward rating revision."
Rating Outlook
The stable outlook reflects growth in traffic due to improving
economic conditions in the service area and also considers the
agency's demonstrated ability and willingness to increase toll
rates to maximize revenues to meet escalating annual debt service
obligations. Moody's notes that the stable outlook and rating
continue to depend on annual toll rate increases tied to the
forecasted inflation rate of 2.5% to 3%, despite the toll road's
already very high toll rates and current usage patterns.
Factors that Could Lead to an Upgrade
Strong and sustainable growth in traffic and toll
revenues that consistently produce DSCRs above
the rate covenant without using reserves
Maintenance of strong liquidity levels
Factors that Could Lead to a Downgrade
Weaker than currently forecasted traffic and toll
revenue that requires use of reserves to pay
annual debt service
Toll rate increases that result in traffic diversion
Additional debt would also exert negative pressure,
though none currently expected
Legal Security
The bonds are secured by net toll revenues and related fees and
fines collected on the toll road and Development impact fees (DIFs)
in excess of $5 million a year are pledged but not used in the rate
covenant or additional bonds tests calculations. Additional
bondholder security is provided by cash-funded debt service reserve
fund (DSRF) and a supplemental reserve to be funded annually from
excess revenues to 50% of maximum annual debt service. Moody's
notes that annual deposits are required to be made to a sinking
fund for CABs debt service from 2017 through 2031, which helps
offset accretion risk.
Use of Proceeds
Not applicable.
Obligor Profile
San Joaquin Transportation Corridor Authority operates a tolled
15-mile limited access ETC 4-6 lane facility in Orange County, the
3rd largest county in California and the 6th largest county in the
US. The toll road opened to traffic in 1996 as the first publicly
owned toll road in CA and has undergone three debt restructurings
since the initial bond issuance in 1993 to better match he growth
of annual debt service slower to the slower actual than forecasted
traffic and revenue growth.
SE OPPORTUNITY: Court Rejects Binder's Bid for Liquidated Damages
-----------------------------------------------------------------
Plaintiff Brian Binder filed a motion seeking liquidated damages
for a breach of contract by defendants SE Opportunity Fund LP, Seth
Miller, Seymour Hurwitz, and Steven Etkind. Previously, the United
States Bankruptcy Court for the Southern District of New York found
that the Defendants breached the contract at issue, and granted the
Plaintiff specific performance of the contract. However, the Court
left open the question of damages.
In a Memorandum Opinion and Order dated December 22, 2015, which is
available at http://is.gd/89yOi3from Leagle.com, Judge Sean H.
Lane of the U.S. Bankruptcy Court for the Southern District of New
York (Manhattan) now finds that the contract does not entitle the
Plaintiff to liquidated damages but rejects the Defendants'
contention that the contract prohibits the Plaintiff from seeking
actual damages. Accordingly, Judge Lane denied the Plaintiff's
request for liquidated damages.
The adversary proceeding is BRYAN BINDER and 553 WEST 174th ST.
LLC, Plaintiffs, v. SE OPPORTUNITY FUND, LP, SETH MILLER, SEYMOUR
HURWITZ, and STEVEN ETKIND, Defendants, Adv. Pro. No. 12-01054
(SHL)(Bankr. S.D.N.Y.).
The bankruptcy case is In re SE OPPORTUNITY FUND, LP, Chapter 11,
Debtor, Case No. 11-14970 (SHL)(Bankr. S.D.N.Y.).
Bryan Binder, Plaintiff, is represented by Tracy L. Klestadt, Esq.
-- tklestadt@klestadt.comTel -- Klestadt Winters Jureller Southard
& Stevens, LLP.
SE Opportunity Fund, LP, Defendant, is represented by Claude
Castro, Esq. -- Claude Castro & Associates, LLP, Mark A. Frankel,
Esq. -- mfrankel@bfklaw.com -- Backenroth Frankel & Krinsky, LLP.
Seth Miller, Defendant, represented by Avrum J. Rosen, Esq. -- The
Law Offices of Avrum J. Rosen, PLLC.
Seymor Hurwitz, Defendant, represented by Glenn Backer, Esq. --
GLENN BACKER ESQ.
SE Opportunity Fund LP sought protection under Chapter 11 of the
Bankruptcy Code on Oct. 26, 2011 (Bankr. S.D.N.Y., Case No.
11-14970). The Debtor's counsel is Mark A. Frankel, Esq., at
Backenroth Frankel & Krinsky, LLP, in New York. The petition was
signed by Jennifer Miller, Trustee of White Oak Profit Sharing
Plan, general partner.
SEPCO CORPORATION: Case Summary & List of Asbestos PI Law Firms
---------------------------------------------------------------
Debtor: Sepco Corporation
1199 S. Chillicothe Road
Aurora, OH 44202
Case No.: 16-50058
Type of Business: Manufacturing or Sales
Chapter 11 Petition Date: January 14, 2016
Court: United States Bankruptcy Court
Northern District of Ohio (Akron)
Judge: Hon. Alan M. Koschik
Debtor's Counsel: Harry W. Greenfield, Esq.
BUCKLEY KING, LPA
1400 Fifth Third Center
600 Superior Avenue
Cleveland, OH 44114
Tel: 216-363-1400
Fax: 216-579-1020
Email: greenfield@buckleyking.com
Estimated Assets: $10 million to $50 million
Estimated Debts: $10 million to $50 million
The petition was signed by Richard J. Szekelyi, chief restructuring
officer.
List of Law Firms Representing the 35 Largest Number of Asbestos
Personal Injury Claimants with Open Claims Against the Debtor:
Number of
Asbestos
Personal
Injury
Claimants with
Entity Nature of Claim Open Claims
------ --------------- ------------
Simmons Hanly Conroy LLC Personal Injury/ 1061
Wrongful Death
Brent Coon & Associates Personal Injury/ 385
Wrongful Death
Law Offices of Peter Personal Injury/ 299
G. Angelos, PC Wrongful Death
Bevan & Associates, LPA, Inc Personal Injury/ 284
Wrongful Death
Nix, Patterson & Personal Injury/ 276
Roach, LLP Wrongful Death
Baron & Budd, PC Personal Injury/ 237
Wrongful Death
Shrader & Associates, Personal Injury/ 196
LLP Wrongful Death
Goldberg, Persky & Personal Injury 188
White, P.C. Wrongful Death
Kelley & Ferraro, LLP Personal Injury/ 175
Wrongful Death
Mazur & Kittel, PLLC Personal Injury/ 134
Wrongful Death
Langston Law Firm Personal Injury/ 120
(The Carlile Law Firm, Wrongful Death
LLP)
David C. Thompson Personal Injury/ 100
Attorney At Law, PC Wrongful Death
Michael B Serling, PC Personal Injury/ 99
Wrongful Death
Lanier Law Firm, PLLC Personal Injury/ 93
Wrongful Death
Swmk Law, LLC Personal Injury/ 89
Wrongful Death
Thornton Law Firm Personal Injury/ 80
Wrongful Death
Reaud, Morgan & Personal Injury/ 79
Quinn, Inc Wrongful Death
Provost Umphrey Law Personal Injury/ 70
Firm, L.L.P. Wrongful Death
Embry & Neusner Personal Injury/ 64
Wrongful Death
Maune Raichle Hartley Personal Injury/ 38
French & Mudd, LLC Wrongful Death
Motley Rice LLC Personal Injury/ 34
Wrongful Death
Richardson, Patrick, Personal Injury/ 33
Westbrook & Wrongful Death
Brickman, LLC
Cappolino, Dodd & Personal Injury/ 32
Krebs LLP Wrongful Death
R.G. Taylor II, P.C. & Personal Injury/ 32
Associates Wrongful Death
- and -
Ferrell Law Group
John J Duffy & Personal Injury/ 31
Associates Wrongful Death
Silber Pearlman LLP Personal Injury/ 30
Wrongful Death
Cooney & Conway Personal Injury/ 29
Wrongful Death
Gori, Julian & Personal Injury/ 28
Associates, PC Wrongful Death
Leblanc & Waddell, LLP Personal Injury/ 28
Wrongful Death
The Bogdan Law Firm Personal Injury/ 27
Wrongful Death
Floyd Law Firm PC Personal Injury/ 26
Wrongful Death
Environmental Personal Injury/ 24
Litigation Group, PC Wrongful Death
Odom Law Firm Personal Injury/ 23
Wrongful Death
Riggs Abney Neal Personal Injury/ 22
Turpen Orbison & Wrongful Death
Lewis
Nass Cancelliere Brenner Personal Injury/ 20
Wrongful Death
SEQUENOM INC: Plans Sale of North Carolina Operation
----------------------------------------------------
Sequenom, Inc., announced actions designed to sharpen the company's
focus on its core women's health business, reduce its operating
costs and optimize its organizational structure and processes.
Among these initiatives are plans to divest Sequenom's North
Carolina operations, partner non-core assets, improve laboratory
efficiency and increase organizational effectiveness.
"We believe these changes will position Sequenom to achieve higher
levels of near-term performance while still allowing us to pursue
our longer-term potential," said Sequenom president and CEO Dirk
van den Boom. "We have the most comprehensive portfolio of
products for noninvasive prenatal applications, a game changing new
product in our MaterniT GENOME laboratory-developed test, an
experienced sales force, and an increased focus on serving
physicians addressing average risk pregnancies. Because these
advantages are considerable, it is essential for us to concentrate
our resources on making the most of our opportunities in women's
health."
The Company will focus its R&D programs on broadening the portfolio
with tests serving obstetricians, gynecologists and maternal fetal
medicine specialists, and expand its presence in the obstetrics and
gynecology sales channel to better serve average risk and high risk
pregnancies seen by these physicians. "In making these changes, we
are committed to unlocking the value that already exists in the
business," said Dr. van den Boom.
Planned Sale of North Carolina Operations In order to better
leverage its existing San Diego infrastructure, Sequenom intends to
sell its operations in Research Triangle Park, North Carolina,
where the company maintains a clinical genomic laboratory for
processing noninvasive prenatal tests and other reproductive health
tests. Operations currently conducted in North Carolina will be
consolidated in San Diego throughout the first half of 2016. "Our
employees have always displayed a remarkable passion for innovation
and a strong commitment to delivering the highest quality products
in support of women's health," said Dr. van den Boom. "In making
the difficult decision to sell our North Carolina facility, we are
working hard to find a buyer that may be able to employ some or all
of our team, thereby minimizing the effect on our employees and
their families."
Partnership Opportunities
Sequenom will also seek strategic partners for the
commercialization of its oncology liquid biopsy assay with a
concomitant reduction in research and development spending in this
area. "We have successfully advanced our oncology liquid biopsy
assay technology and created the most comprehensive circulating
tumor DNA profiling assay, which has multiple applications. We
believe this valuable asset can most effectively be advanced
together with partners that have clinical expertise and a
distribution presence in product markets relevant to these oncology
assays," remarked Dr. van den Boom.
Operational Efficiencies,
Cost Reductions, and Operating Cash Flow Goal
To improve the efficiency of its overall operations, Sequenom has
conducted a detailed review of all of its operating functions,
internal staffing levels, and corporate relationships, and intends
to effect reductions in a number of areas. Sequenom will reduce
its workforce by approximately 20%, or 110 positions, out of a
total of approximately 500 filled and authorized positions. "We
understand that this will be a difficult time for our affected
employees and we are committed to act with fairness, integrity and
respect, and provide support to them during this transition. In
particular, I want to give my sincere thanks to our departing
employees for their efforts and wish them great success in the
future," Dr. van den Boom said.
As a result of the restructuring program, Sequenom has increased
its previously announced expected cost savings of over $10 million
annually to an annualized cost savings anticipated to exceed $20
million in late 2016, once all reductions are fully implemented.
Reductions are planned in both the cost of revenues and in
operating expenses, primarily in research and development and
general and administrative functions.
In parallel with the efficiency initiatives and cost reductions,
Sequenom announced its goal of attaining a neutral operating cash
flow run rate before the end of 2017. "One important goal of this
restructuring is to enable Sequenom's operations to be sustainable
and self-supporting," said Dr. van den Boom.
About Sequenom
Sequenom, Inc. (NASDAQ: SQNM) -- http://www.sequenom.com/-- is a
life sciences company committed to improving healthcare through
revolutionary genetic analysis solutions. Sequenom develops
innovative technology, products and diagnostic tests that target
and serve discovery and clinical research, and molecular
diagnostics markets. The company was founded in 1994 and is
headquartered in San Diego, California.
As of Sept. 30, 2015, the Company had $129 million in total assets,
$156 million in total liabilities and a $27.7 million total
stockholders' deficit.
"If we fail to generate enough cash flow from our operations or
otherwise obtain the capital necessary to fund our operations, our
financial results, financial condition and our ability to continue
as a going concern will be adversely affected and we will have to
cease or reduce further commercialization efforts or delay or
terminate some or all of our diagnostic testing services or other
product development programs," the Company said in its 2014 annual
report.
SEVENTY SEVEN: S&P Cuts CCR to CCC- on Possible Debt Restructuring
------------------------------------------------------------------
Standard & Poor's Ratings Services lowered its corporate credit
rating on Oklahoma City-based Seventy Seven Energy Inc. to 'CCC-'
from 'CCC+'. The outlook is negative.
At the same time, S&P lowered its issue-level ratings on the
company's secured notes to 'CCC+' from 'B', unsecured notes to
'CCC-' from 'CCC+', and structurally subordinated unsecured notes
to 'C' from 'CCC-'. The recovery rating on the senior secured
notes remains '1', indicating very high (90% to 100%) recovery, the
recovery rating on the senior unsecured notes remains '3',
indicating meaningful (50% to 70%; at the lower half of the range)
recovery in the case of a payment default. The recovery rating on
the subordinated notes remains '6', indicating negligible (0% to
10%) recovery in the case of a payment default.
"The downgrade follows Seventy Seven Energy's announcement that it
has hired advisors to explore and identify capital structure
opportunities, which we believe could include a debt restructuring
or distressed exchange," said Standard & Poor's credit analyst
Carin Dehne Kiley. "We believe any transaction or debt exchange
would be substantially below par value, given that the company's
unsecured notes currently trade below 35 cents on the dollar," she
added.
Per S&P's criteria, it would view an exchange as distressed if, in
its view, the offer:
-- Implies that the investor will receive less value than the
promise of the original securities; and
-- Is distressed rather than purely opportunistic.
The outlook on Seventy Seven is negative, reflecting the likelihood
that the company may pursue a capital restructuring or debt
exchange that S&P would view as distressed.
S&P could lower the rating if the company announced a capital
restructuring or distressed exchange.
Although unlikely, S&P could raise the rating if it no longer
believed a capital restructuring or debt exchange was likely over
the next year, such as if the company were able to raise additional
cash.
SUNRISE REAL ESTATE: Incurs $717,000 Net Loss in Q1 2014
--------------------------------------------------------
Sunrise Real Estate Group, Inc., filed with the Securities and
Exchange Commission its quarterly report on Form 10-Q disclosing a
net loss of $717,000 on $2.72 million of net revenues for the three
months ended March 31, 2014, compared to a net loss of $1.33
million on $2.11 million of net revenues for the same period in
2013.
As of March 31, 2014, the Company had $69.9 million in total
assets, $67.7 million in total liabilities, and $2.20 million in
total shareholders' equity.
Liquidity and Capital Resources
In the first quarter of 2014, the Company's principal sources of
cash were revenues from its agency sales and property management
business. Most of the Company's cash resources were used to fund
its property development investment and revenue related expenses,
such as salaries and commissions paid to the sales force, daily
administrative expenses and the maintenance of regional offices.
The Company ended the period with a cash position of $3,227,632.
The Company's operating activities used cash in the amount of
$7,988,203, which was primarily attributable to the other
receivables and deposits.
The Company's investing activities used cash resources of $42,978,
which was primarily attributable to the acquisition of property,
plant and equipment and long-term investments.
A full-text copy of the Form 10-Q is available for free at:
http://is.gd/B8wCYA
About Sunrise Real Estate
Headquartered in Shanghai, the People's Republic of China, Sunrise
Real Estate Group, Inc. was initially incorporated in Texas on
Oct. 10, 1996, under the name of Parallax Entertainment, Inc.
On Dec. 12, 2003, Parallax changed its name to Sunrise Real
Estate Development Group, Inc. On April 25, 2006, Sunrise Estate
Development Group, Inc., filed Articles of Amendment with the
Texas Secretary of State, changing the name of Sunrise Real Estate
Development Group, Inc. to Sunrise Real Estate Group, Inc.,
effective from May 23, 2006.
The Company and its subsidiaries are engaged in the property
brokerage services, real estate marketing services, property
leasing services and property management services in China.
Sunrise Real Estate reported a net loss of $1.93 million in 2013
following a net loss of $3.47 million in 2012.
Finesse CPA, P.C., in Chicago, Illinois, issued a "going concern"
qualification on the consolidated financial statements for the
year ended Dec. 31, 2013. The independent auditors noted that the
Company has a working capital deficiency, accumulated deficit from
recurring net losses for the current and prior years, and
significant short-term debt obligations currently in default or
maturing in less than one year. These conditions raise
substantial doubt about its ability to continue as a going
concern.
TIM HORTONS: Moody's Assigns 'B2' Rating to Unsecured Note Classes
------------------------------------------------------------------
Moody's Investors Service assigned a B2 rating to Tim Hortons
existing 4.2% Series 1 notes, 4.52% Series 2 notes and 2.85% series
3 notes. The ratings assigned to Tim Hortons existing notes are
based on the current ratings and capital structure of 1011778 B.C.
Unlimited Liability Company (1011778 B.C.), which is the indirect
parent of The TDL Group Corp. (TDL), the successor issuer under the
existing Tim Hortons notes. 1011778 B.C. owns, operates and
franchises the restaurant concepts Burger King and Tim Hortons.
The B2 rating on Tim Hortons existing notes reflect the benefit
these notes derive from being pari passu with 1011778 B.C.'s
guaranteed senior secured 1st lien bank facility and guaranteed
senior secured 1st lien notes and senior to the 2nd lien senior
secured notes of 1011778 B.C. in regards to the collateral at TDL
in a distress scenario. However, the B2 rating also reflects the
fact that the Tim Hortons notes are not secured by the assets of
any entity other than that of TDL, whereas the 1st lien bank
facility, 1st lien notes and 2nd lien notes of 1011778 B.C. are
secured by all assets in addition to TDL.
Ratings assigned are:
-- CAD$300 million (approx. CAD$47.4m outstanding) 4.2% Series 1
notes due 6/2017 rated B2 (LGD5)
-- CAD$450 million (approx. CAD$2.6m outstanding) 4.52% Series 2
notes due 12/2023 rated B2 (LGD5)
-- CAD$450 million (approx. CAD$3.9m outstanding) 2.85% series 3
notes due 4/2019 rated B2 (LGD5).
Current ratings of 1011778 B.C. Unlimited Liability Company
include:
-- Corporate Family Rating of B1
-- Probability of default rating of B1-PD
-- $2.25 billion guaranteed senior secured 2nd lien notes due
2022 rated B3 (LGD5)
-- $500 million guaranteed senior secured 1st lien revolving
credit facility rated Ba3 (LGD3)
-- $5.1 billion guaranteed senior secured 1st lien term loan
rated Ba3 (LGD3)
-- $1.25 billion guaranteed senior secured 1st lien notes due
2022 rated Ba3 (LGD3)
-- SGL-1 Speculative Grade Liquidity Rating
1011778 B.C. Unlimited Liability Company, owns, operates and
franchises 14,669 Burger King hamburger quick service restaurants
and 4,845 Tim Horton restaurants. Annual revenues are about $4.0
billion, although systemwide sales are over $23 billion.
TRADEWINDS AIRLINES: Court Denies Bid to Dismiss Ex-Counsel's Suit
------------------------------------------------------------------
Barry Mukamal, Chapter 7 Trustee for Tradewinds Airlines, Inc.,
filed an emergency motion asking the bankruptcy court to compel
Violet Elizabeth Grayson to dismiss her action filed in New York
asserting claims against the Trustee, his professionals, and
certain creditors in violation of the Barton Doctrine.
In an Order dated December 21, 2015, which is available at
http://is.gd/KyOmMKfrom Leagle.com, Judge A. Jay Cristol of the
United States Bankruptcy Court for the Southern District of Florida
denies the Trustee's Dismissal Motion.
According to Judge Cristol, the Dismissal Motion is moot as it
relates to the Trustee and his court-appointed professionals, as
special litigation counsel Violet Elizabeth Grayson voluntarily
dismissed with prejudice the civil action she initiated against
them based on the applicability of the Barton Doctrine.
With respect to the remaining defendants, the Coreolis creditor
entities, the Court believes the Barton Doctrine is not applicable
to them and, therefore, denies the Dismissal Motion with respect to
the Coreolis defendants in the New York State Court.
The case is In re: TRADEWINDS AIRLINES, INC., Chapter 7, Debtor,
Case No. 08-20394-BKC-AJC (Bankr. S.D. Fla.).
TradeWinds Airlines, Inc., Debtor, is represented by Jason Z.
Jones, Esq. -- jjones@joneslawpa.com -- Jones Law Office, PA,
Thomas R. Lehman, Esq. -- TRL@lklsg.com -- LKLSG.
Barry E Mukamal, Trustee, represented by William Christopher
Carmody, Esq. -- bcarmody@SusmanGodfrey.com -- Susman Godfrey
L.L.P., J. Nathan Duggins, Esq. -- NDuggins@tuggleduggins.com --
Tuggle Duggins, P.A., Lynn Maynard Gollin, Esq.,
lgollin@gordonrees.com -- Gordon & Rees, Jennifar M Hill, Barry E
Mukamal, Esq. -- bmukamal@kapilamukamal.com -- Kapila & Company,
Robin J Rubens, Esq. -- RJR@lklsg.com -- Robin Rubens.
About TradeWinds Airlines
Headquartered at the Triad International Airport in Greensboro,
North Carolina, TradeWinds Airlines LLC -- http://www.tradewinds-
airlines.com/ -- operates A300-B4F freighter aircraft for domestic
and foreign customers. The company has operations at Miami
International Airport and in Puerto Rico.
The airline filed for Chapter 11 protection on July 25, 2008
(Bankr. S. D. Fla. Case No. 08-20394). Scott L. Baena, Esq., at
Bilzin Sumberg Baena Price & Axelrod LLP represents the airline in
its restructuring effort. The airline listed assets of between
US$1 million and US$10 million, and debts of between US$10 million
and US$50 million.
TRISTAR WELLNESS: Files Voluntary Chapter 7 Petition
----------------------------------------------------
TriStar Wellness Solutions(R), Inc., a health and wellness company
that targets opportunities in advanced wound care, on Jan. 15
disclosed that it has filed a voluntary petition for relief under
provisions of Chapter 7 of the United States Bankruptcy Code to
initiate an orderly liquidation of the assets of the Company.
The Chapter 7 case was filed in the United States Bankruptcy Court
for the District of Oregon. As a result of the filing, a Chapter 7
trustee will be appointed in the Chapter 7 case and the assets of
the Company will be liquidated in accordance with the Bankruptcy
Code. Additional information on the process can be obtained
through the Court.
HemCon Medical Technologies, Inc., TWSI's primary asset, is
transitioning to new ownership though a separate Court protected
transaction. The HemCon business will continue normal operations,
including the sale of its hemostatic, antibacterial medical
devices, without disruption of service to its customers, while
implementing an acquisition process leading to new ownership
through a sale under Section 363 of Title 11 of the United States
Code.
About TriStar Wellness
TriStar Wellness Solutions, Inc., offers products and technologies
in the areas of wound care, women's health and therapeutic skin
care. The Company is based in Westport, Connecticut.
TriStar Wellness reported a net loss of $8.87 million on $5.54
million of sales revenue for the year ended Dec. 31, 2014, compared
to a net loss of $12.6 million on $3.77 million of sales revenue
for the year ended Dec. 31, 2014.
M&K CPAS, PLLC, in Houston, TX, issued a "going concern"
qualification on the consolidated financial statements for the year
ended Dec. 31, 2014, citing that the Company has suffered
reoccurring losses from operations, and has an accumulated deficit
and working capital deficit as of Dec. 31, 2014. These conditions
raise substantial doubt about its ability to continue as a going
concern.
TRUMP ENTERTAINMENT: Icahn Wins Fight with Casino Union
-------------------------------------------------------
Peg Brickley, writing for Dow Jones' Daily Bankruptcy Review,
reported that a federal appeals court in Philadelphia Friday upheld
a decision that allowed the Trump Taj Mahal casino in Atlantic
City, N.J., to escape its union contracts in bankruptcy. According
to the report, the decision is a victory for Carl Icahn, the
billionaire who controls the last remaining Atlantic Casino to bear
the Trump name, after a series of bankruptcies.
About Trump Entertainment Resorts
Trump Entertainment Resorts Inc., owns two Atlantic City Boardwalk
casinos that bear the name of Donald Trump.
The predecessor, Trump Hotels & Casino Resorts, Inc., first filed
for Chapter 11 protection on Nov. 21, 2004 (Bankr. D.N.J. Case No.
04-46898 through 04-46925) and exited bankruptcy in May 2005 under
the name Trump Entertainment Resorts Inc. Trump Entertainment
Resorts sought Chapter 11 protection on Feb. 17, 2009 (Bankr.
D.N.J. Lead Case No. 09-13654) and exited bankruptcy in 2010.
Trump Entertainment Resorts Inc. returned to Chapter 11 bankruptcy
(Bankr. D. Del. Case No. 14-12103) on Sept. 9, 2014, with plans to
shutter its casinos.
The Debtors have sought an order authorizing the joint
administration of their Chapter 11 cases and the consolidation
thereof for procedural purposes only. Judge Kevin Gross presides
over the Chapter 11 cases.
The Debtors have tapped Young, Conaway, Stargatt & Taylor, LLP, as
counsel; Stroock & Stroock & Lavan LLP, as co-counsel; Houlihan
Lokey Capital, Inc., as financial advisor; and Prime Clerk LLC, as
noticing and claims agent.
TER estimated $100 million to $500 million in assets as of the
bankruptcy filing.
The Debtors as of Sept. 9, 2014, owe $285.6 million in principal
plus accrued but unpaid interest of $6.6 million under a first
lien
debt issued under their 2010 bankruptcy-exit plan. The Debtors
also have trade debt in the amount of $13.5 million.
* * *
Judge Kevin Gross of the U.S. Bankruptcy Court for the District of
Delaware on March 12, 2015, confirmed Trump Entertainment Resorts,
Inc., et al.'s Third Amended Joint Plan of Reorganization and
Disclosure Statement pursuant to Section 1129 of the Bankruptcy
Code.
The Debtors filed on January 5, 2015, the Plan and accompanying
Disclosure Statement to, among other things, provide that holders
of General Unsecured Claims will receive Distribution Trust
Interests, which will include $1 million in cash and the proceeds,
if any, of certain avoidance actions. Under the revised plan,
holders of general unsecured claims are estimated to recover 0.47%
to 0.43% of their total allowed claim amount. The Amended Plan
also includes language reflecting the recently-approved $20
million
loan from Carl Icahn.
The Effective Date of the Plan has not yet occurred, as certain
conditions precedent to the occurrence of the Effective Date,
including the CBA Order having become a Final Order, have not yet
been met.
VIGGLE INC: Sabby Healthcare No Longer a Shareholder
----------------------------------------------------
In an amended Schedule 13G filed with the Securities and Exchange
Commission, Sabby Healthcare Master Fund, Ltd., Sabby Management,
LLC and Hal Mintz disclosed that as of Dec. 31, 2015, they do not
beneficially own any shares of common stock of Viggle Inc. A copy
of the regulatory filing is available at http://is.gd/VFramF
About Viggle
New York City-based Viggle Inc. is a loyalty marketing company.
The Company has developed a loyalty program for television that
gives people real rewards for checking into the television shows
they are watching on most mobile operating system. Viggle users
can redeem their points in the app's rewards catalog for items
such as movie tickets, music, or gift cards.
Viggle reported a net loss attributable to common stockholders of
$78.9 million on $25.5 million of revenue for the year ended
June 30, 2015, compared to a net loss attributable to common
stockholders of $68.1 million on $18.0 million of revenues for the
year ended June 30, 2014.
As of Sept. 30, 2015, the Company had $74.0 million in total
assets, $59.8 million in total liabilities, $12.04 million in
series C convertible preferred stock and $2.10 million in total
stockholders' equity.
BDO USA, LLP, in New York, issued a "going concern" qualification
on the consolidated financial statements for the year ended
June 30, 2015, citing that the Company has suffered recurring
losses from operations and at June 30, 2015, has a deficiency in
working capital that raise substantial doubt about its ability to
continue as a going concern.
WARTBURG COLLEGE: Fitch Lowers Rating on $84.6MM Bonds to 'BB-'
---------------------------------------------------------------
Fitch Ratings has downgraded approximately $84.6 million private
college revenue refunding bonds, series 2015 issued by the Iowa
Higher Education Loan Authority on behalf of Wartburg College
(Wartburg or the college) to 'BB-' from 'BB'.
The Rating Outlook has been revised to Stable from Negative.
SECURITY
The series 2015 private college facility revenue bonds are a
general obligation of the college, secured by a lien on revenues of
the college and a mortgage on the core campus. Additionally, the
bonds are supported by a debt service reserve fund equal to maximum
annual debt service (MADS).
KEY RATING DRIVERS
DOWNGRADE to 'BB-': Wartburg's rating downgrade to 'BB-' reflects
the college's small headcount which continues to decline and fails
to achieve preliminary budgeted estimates. The college's high
reliance on student revenue for operations makes it very vulnerable
to enrollment shifts. Wartburg's history of generally negative and
volatile operating margins, as calculated by Fitch, is expected to
be further impacted by lower than expected net tuition and fee
revenues, high tuition discounting coupled with limited ability to
raise revenue/cut expenses in the current year which supports the
downgrade at this time.
STABLE OUTLOOK: The revision to Stable Outlook reflects relative
stability in the college's financial cushion, which is a strength
when compared to the rating category, and the lack of additional
debt plans which alleviates some concern over the high debt burden.
Though Wartburg's balance sheet strength provides some cushion to
implement an enrollment recovery plan over the next year, inability
to execute a plan that would generate operating improvement would
trigger further rating action.
FINANCIAL FLEXIBILITY LIMITED: Wartburg is dependent on student
fees to support operations. This reliance is exacerbated by a high
discount rate which limits growth in net tuition revenues.
DECLINING ENROLLMENT TREND: Wartburg has experienced four
consecutive years of declining full-time equivalent (FTE)
enrollment. Competition continues to challenge the college which
has driven up the institutional aid requirement over time.
RATING SENSITIVITIES
OPERATING PERFORMANCE: Wartburg College's rating is sensitive to
modest shifts in enrollment and resultant impacts to operating
performance. Failure to improve enrollment in fall 2016 and
operating performance in fiscal 2017 could negatively pressure the
rating further.
RESOURCE STABILITY: Wartburg College's inability to sustain and
build on vastly improved resources could negatively pressure the
rating.
CREDIT PROFILE
Wartburg College, established in 1852 as a liberal arts college of
the Evangelical Lutheran Church in America, is located in Waverly,
IA and serves predominantly (about 66%) of in-state undergraduate
students.
NEGATIVE-TRENDING ENROLLMENT
Headcount declined by 7.5% in fall 2015 to 1,537. FTE enrollment
was also down 7.7% at 1,503, from 1,628 FTE in fall 2014. Similar
to the prior year, Wartburg's fall 2015 enrollment fell short of
preliminary budgeted targets. Fitch notes that given the school's
modest enrollment, a decline of this magnitude could have a large
financial impact on fiscal 2016 operations. Wartburg's budget was
adjusted in October to reflect actual headcount. The college
historically updates the budget each fall, after actual fall
enrollment is certain.
Technical/vendor problems, a new CRM and new counselors/recruiters
in admissions with no previous direct experience partly drove the
smaller incoming class in fall 2015. Further, Wartburg's
principally regional market area has declining numbers of high
school graduates. Increased competition for students has been
driven by both private and public institutions in Iowa. Though
management does not expect significant changes in headcount due to
larger incoming classes graduating (from fall 12 and 13) and
smaller incoming classes over the last three years; management
expects fall 2016 to achieve a larger incoming class over fall 2015
and overall headcount to level out. Retention rates are strong but
fluctuate year-to-year. The freshman to sophomore retention rate
was up in fall 2015 at about 80% and six-year graduation rates
remain solid at 60%.
Fitch views the continuing decline in enrollment as a credit
concern, particularly after expectations for incremental growth and
stabilized enrollment. Inability to stabilize enrollment drives
the rating downgrade at this time.
HEAVILY TUITION RELIANT
Negative-trending enrollment continued for the fourth consecutive
year in fall of 2015 and continues to pressure operations. Given
its small operating budget, the college's operations are vulnerable
to slight variations in enrollment and financial aid without
diligent expense management.
Wartburg relies heavily on student revenues, 81.5% in fiscal 2015.
Gross tuition and fees in fiscal 2015, were generally flat over
prior year despite declining enrollment due to a 5.3% increase in
tuition and fees. Net tuition revenue in fiscal 2015 was also flat
largely due to a high but generally stable institutional aid
requirement. However, the tuition rate increase in fiscal 2016
(fall 2015) was only (2.9%), which could have a negative impact on
net tuition revenues if the discounting rate were to increase
further, especially given the negative trending in enrollment.
Fitch will continue to monitor the college's ability to grow net
tuition revenue, stabilize enrollment and effectively manage the
institutional aid expense. The inability to do so could negatively
impact the rating further.
DEFICIT OPERATIONS CONTINUING
Wartburg's operating results are historically negative on a full
accrual basis, as calculated by Fitch. After showing improvement
to positive in fiscal 2013, fiscal 2014 returned to negative;
though still negative on a full accrual basis in fiscal 2015,
results reflect modest improvement to -2.4%, including its
endowment draw, from negative -3.6% in fiscal 2014.
For fiscal 2016, management expects unrestricted results to be
worse than fiscal 2015 due to lower than budgeted enrollment, lower
tuition rate increase, weaker investment results, one-time
retirement incentive plus a severance program which could total
about $1 million. Expenses are not immediately down though debt
service savings and campaign gifts are expected to partially
offset. Beyond fiscal 2016, the college expects improvement.
The college is in the process of identifying both new revenues and
expense reductions for fiscal 2016 and beyond of $4 million.
Wartburg's ability to achieve operating balance and enrollment
stability in the coming fiscal cycle depends on its success in
meeting its target. The college's ability to implement a plan that
will improve and sustain margins and stabilize headcount will be a
key factor in maintaining the stable outlook.
THIN BUT SOUND LIQUIDITY LEVELS
Liquidity levels show continued improvement in fiscal 2015. Cash
and investments totaled $85.9 million in fiscal 2015, up from about
$75.5 million in the prior year. Consequently, available funds,
defined as unrestricted cash and investments, increased slightly to
$35.9 million in fiscal 2015 from $33.1 million in fiscal 2014.
Wartburg's available funds ratios remain strong for the rating
category and indicate some cushion for operations. Available funds
are 67% of fiscal 2015 operating expenditures and 42.5% of
long-term debt.
Under the bond documents, the college's liquidity covenant requires
it to maintain long term debt-to-total cash and investments,
including restricted cash, of greater than .50x; based on
information provided the fiscal 2015 liquidity ratio calculation
improved to 1.15x, exceeding the .50x minimum requirement.
The alternative investment allocation for Wartburg is approximately
23.7%, essentially the same as the previous years. With respect to
endowment performance, Wartburg's fiscal 2016 year to date return
is down -4.3% and the pooled endowment market value at November 30,
2015 is $63.2 million; however, the endowment has positive returns
of 4.7% on an annualized basis since inception. Wartburg continues
to draw 4.5% of the endowment based on a rolling 36-month average.
Wartburg's high reliance on student-related revenue necessitates
maintenance of a liquidity cushion at or above current levels to
manage operating and enrollment fluctuations. Positively, as of
December 2015, the college has raised $74 million of gifts and
pledges of its $75 million campaign goal a year early after
entering a public phase in October 2014. Fitch views Wartburg's
established fundraising culture and ability to meet its goals as
planned favorably.
HIGH DEBT BURDEN; WEAK BUT ADEQUATE COVERAGE
Post refunding, Wartburg's long-term debt of $85.9 million yields a
high MADS burden of 11.8%. Historically, Fitch believes the
college has partially offset this debt burden by covering current
debt service from operations. However, MADS ($6.2 million)
coverage is weak but adequate for the rating category at 1.1x based
on fiscal 2015 unrestricted operating revenues, as calculated by
Fitch.
The series 2015 debt structure has a slightly ascending structure
with MADS occurring in fiscal 2035. The college's debt burden is
expected to decline over time due to normal amortization and the
lack of any new debt plans. The college continues to be in
compliance with its legal rate covenant which requires 1.10x
coverage, unless its liquidity ratio exceeds .75x (which it did in
fiscal 2015).
WINDSOR FINANCIAL: Case Summary & 20 Largest Unsecured Creditors
----------------------------------------------------------------
Debtor: Windsor Financial Group LLC
810 Seventh Avenue, Suite 1701
New York, NY 10019
Case No.: 16-10097
Type of Business: Retail
Chapter 11 Petition Date: January 15, 2016
Court: United States Bankruptcy Court
Southern District of New York (Manhattan)
Debtor's Counsel: Nicole Stefanelli, Esq.
LOWENSTEIN SANDLER LLP
65 Livingston Avenue
Roseland, NJ 07068
Tel: (973) 597-2500
Fax: (973) 597-2400
Email: nstefanelli@lowenstein.com
Estimated Assets: $10 million to $50 million
Estimated Debts: $10 million to $50 million
The petition was signed by Armando Ruiz, chief executive officer.
List of Debtor's 20 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Shawmut Woodworking & Supply Trade Debt $1,666,959
3 East 54th Street
New York, NY 10022
Lambert Trust Personal Loan $1,000,000
c/o Joy Herd
10960 Wilshire Blvd., 5th Fl
Los Angeles, CA 90024
Build Group, Inc. Trade Debt $777,369
Attn: John Santori
457 Minna Street
San Francisco, CA 94103
Waterbridge Capital Personal Loan $490,000
Attn: Joel Schreiber
7 Times Square, #37
New York, NY 10036
Apogee Design And Trade Debt $379,480
Construction
315 West 39th Street
New York, NY 10018
MG Concepts Trade Debt $373,205
Attn: Andrew Krull
185 Dixon Avenue
Amityville, NY 11701
New York State Department Taxes $365,290
Of Taxation and Finance
Attn: Ms. Paul
WA Harriman State Campus
Albany, NY 12227-0001
J.A. Carpentry, Inc. Trade Debt $358,754
Attn: Jim Agresta
150 English Street
Hackensack, NJ 07601
Itoki (Suzhou) Furniture Co. Trade Debt $351,506
Attn: Harry Gao
No. 222 Hufuhuang Road,
Liuhe Town Taicang City
Jiangsu China 215431
H.C. Pody Company Trade Debt $275,692
Attn: Hugh Pody
946 Simons Avenue
Bensalem, PA 19020
Hambleton Group Trade Debt $264,100
Construction
Attn: John Hambleton
P.O. Box 114630
503 A. St.
Bldg. #3, Mario Julia Ind. Park
San Juan, PR 00920
FLA Sales Inc. Note Payable $240,000
Attn: Jay Austrian
49 Briarfield Lane
Huntington, NY 11743
State of California Taxes $212,703
Board of Equalization
P.O. Box 942879
Sacramento, CA 94279-0095
Creative Realties, LLC Trade Debt $165,078
1140 Broadway
New York, NY 10001
Crome Architecture Trade Debt $147,613
Attn: Max Crome
905 Fourth Street
San Rafael, CA 94901
I-Ware Laboratory Co., Ltd. Trade Debt $145,566
Attn: Kozo Kimuri
Minoh Fureres Bldg. 5F
1-10-9, Senba-Higashi
Minoh-City Osaka Japan
MCK Comms LLC Trade Debt $110,226
141 R Washington Street
Norwell, MA 02061
Elkins Kalt Weintraub Reuben Professional $100,000
Gartside, LLP Services
2049 Century Park East
Suite 2500
Los Angeles, CA 90067
Omniscient Investigations Trade Debt $91,635
Corporation
587 Willi Hill Road
Swan Lake, NY 12783
Fusion Specialties, Inc. Trade Debt $82,313
9575 Pan American, Suite 4
El Paso, TX 79927
WORLD IMPORTS: Hires Pastor & Golbois as Accountant
---------------------------------------------------
World Imports, Ltd. seeks authorization from the U.S. Bankruptcy
Court for the Eastern District of Pennsylvania to employ Pastor &
Golbois, P.A. as accountant.
P&G agreed to provide accounting services to the Debtor and the
Debtor believes it necessary to have P&G employed in this chapter
11 case to provide it with necessary and appropriate accounting,
tax, business and financial advise and services. The employment
will include general accounting services, providing the debtor with
advice regarding tax issues, and preparing all applicable tax
returns for filing by the Debtor.
P&G's hourly billing rates range between $150 and $250 per hour.
P&G will also be reimbursed for reasonable out-of-pocket expenses
incurred.
Alan H. Pastor, partner of P&G, 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.
P&G can be reached at:
Alan H. Pastor
PASTOR & GOLBOIS CPAs, P.A.
5300 W. Atlantic Ave Suite 305
Delray Beach, FL 33484
Tel: (561)995-1935
Fax: (561)995-1934
E-mail: apastor@pg-cpa.com
About World Imports
World Imports, Ltd., filed a Chapter 11 petition (Bankr. E.D. Pa.
Case No. 13-15929) on July 3, 2013, in Philadelphia. Debtor-
affiliates World Imports South, LLC (Bankr. E.D. Pa. Case No.
13-15933), 11000 LLC (Bankr. E.D. Pa. Case No. 13-15934, and World
Imports Chicago, LLC (Bankr. E.D. Pa. Case No. 13-15935) filed
separate petitions for Chapter 11 relief. The cases are jointly
administered under Case No. 13-15929. John E. Kaskey, Esq., at
Braverman Kaskey, P.C., in Philadelphia, serves as counsel to the
Debtors. World Imports, Ltd., estimated assets and debts of $10
million to $50 million. World Imports South, LLC, estimated assets
of $1 million to $10 million.
Roberta A. DeAngelis, United States Trustee for Region 3,
appointed a 3-member Committee of Unsecured Creditors. Fox
Rothschild LLP as counsel.
WPCS INTERNATIONAL: Deletes Director Removal Language in Bylaws
---------------------------------------------------------------
On and effective Jan. 12, 2016, the Board of Directors of WPCS
International Incorporated adopted an amendment to Article III,
Section 3.05 of the amended and restated bylaws of the Company to
delete language that stockholders may remove directors only for
cause. Under the Delaware General Corporation Law, directors may
be removed with or without cause in accordance with the
requirements of the DGCL.
About WPCS International Incorporated
WPCS -- http://www.wpcs.com/-- operates in two business segments
including: (1) providing communications infrastructure contracting
services to the public services, healthcare, energy and corporate
enterprise markets worldwide; and (2) developing a Bitcoin trading
platform.
WPCS reported a net loss attributable to the Company's common
shareholders of $11.3 million on $24.4 million of revenue for the
year ended April 30, 2015, compared with a net loss attributable to
the Company's common shareholders of $11.2 million on $15.7 million
of revenue for the year ended April 30, 2014.
As of Oct. 31, 2015, the Company had $7.42 million in total assets,
$4.58 million in total liabilities and $2.84 million in total
equity.
[*] Akerman Expands Bankruptcy & Reorganization Practice in Dallas
------------------------------------------------------------------
Akerman LLP, a top 100 U.S. law firm serving clients across the
Americas, on Jan. 15 announced the continued expansion of its
Dallas office with partners John Mitchell and David Parham. They
join Akerman's Bankruptcy & Reorganization Practice Group from
Baker & McKenzie with nearly four decades of combined experience in
complex bankruptcies, corporate restructurings, and
bankruptcy-related litigation across the United States. They build
upon Akerman's core strengths in the mergers and acquisitions,
financial services and real estate sectors, and broaden the firm's
significant experiences in the retail, restaurant, transportation
and energy sectors.
"John and David have a tremendous reputation in the bankruptcy
courts and have been instrumental in representing U.S. and
international clients in bankruptcies and restructurings," said
Andrea Hartley, chair of Akerman's Bankruptcy & Reorganization
Practice Group. "Their arrival to the Dallas office expands our
ability to serve clients in key industry sectors nationally and
adds a new dimension to the breadth and depth of our bankruptcy and
reorganization practice."
John E. Mitchell handles all aspects of commercial restructurings
and focuses his practice on complex bankruptcies, out-of-court
workouts and sales, voluntary liquidations, receiverships, and
asset sales and general insolvency related litigation. He
represents lenders, creditors, debtors and trustees across the
United States in bankruptcy and pre-bankruptcy workouts in the real
estate, energy, oil and gas, power, food service, retail, consumer
finance, and commercial vehicles and heavy equipment sectors.
Mr. Mitchell is recognized by Chambers for his proficiency in
bankruptcy and restructuring. He also was honored with the
Turnaround Management Association's International Turnaround of the
Year Award and the Robert B. Wilson Distinguished Service Award
from the Bankruptcy Law Section of the State Bar of Texas. He
received his J.D. magna cum laude from Texas Tech School of Law and
his B.B.A. from Texas A&M University where he was a distinguished
military graduate. Prior to law school, Mitchell served as a
lieutenant in the United States Army from 1988 to 1992, and served
in Desert Storm. He is president-elect of the Texas Aggie Bar
Association and serves on the Board of Directors for The Texas
Veterans of Foreign Wars Foundation.
David W. Parham has extensive experience in a wide range of
bankruptcy and insolvency matters. He represents financial
institutions, corporate and partnership debtors, creditor
committees, equity holders, secured and unsecured creditors,
lessors, and trustees in bankruptcy proceedings, litigation and
workouts. He handles a variety of commercial litigation matters in
bankruptcy courts and in federal and state courts. These
representations include prosecution and defense of claims against
directors and officers for breach of fiduciary duty and cases
involving allegations of fraud, fraudulent conveyance and
preference. He has represented clients across a range of sectors
including, insurance, real estate, retail, aviation,
telecommunications, distribution, manufacturing, energy and
mining.
Mr. Parham is recognized by Chambers for his proficiency in
bankruptcy and restructuring. He has been honored with the
Turnaround Management Association's Turnaround of the Year Award
for a Mega Company, Chapter 11 Reorganization Deal of the Year in
the Middle Markets category, and the Turnaround Atlas Awards. He
earned his J.D. from the University of Oklahoma College of Law and
received his B.B.A. with distinction from the University of
Oklahoma.
Akerman's growing Dallas office includes 22 lawyers with experience
in commercial litigation, corporate and M&A transactions,
bankruptcy and regulatory compliance issues, with a strong focus in
the financial services and real estate sectors.
About Akerman LLP
Akerman LLP is a leading transactions and trial law firm known for
core strengths in middle market M&A, within the financial services
and real estate industries, and for a diverse Latin America
practice. With more than 600 lawyers and government affairs
professionals and a network of 20 offices, it is ranked among the
top 100 law firms in the United States by The American Lawyer
(2015). Akerman also is ranked among the top 50 law firms for
diversity in The American Lawyer's Diversity Scorecard (2015).
Akerman's Bankruptcy & Reorganization Practice Group serves as
bankruptcy counsel or receiver in complex insolvency cases, helping
parties maximize recoveries nationwide. With a leading banking and
finance practice, the firm regularly represents global financial
institutions, mortgage holders, and other secured creditors as well
as court appointed committees, trustees, creditors, purchasers, and
other stakeholders in workouts, receiverships, and Chapter 11
reorganizations. Akerman is recognized by U.S. News -- Best
Lawyers as a national tier one law firm in the Litigation --
Bankruptcy category.
[^] BOND PRICING: For the Week from January 11 to 15, 2016
----------------------------------------------------------
Company Ticker Coupon Bid Price Maturity
------- ------ ------ --------- --------
99 Cents Only Stores LLC NDN 11.00 37.87 12/15/2019
A. M. Castle & Co CAS 12.75 71.72 12/15/2016
A. M. Castle & Co CAS 7.00 39.00 12/15/2017
A. M. Castle & Co CAS 12.75 67.75 12/15/2016
A. M. Castle & Co CAS 12.75 67.75 12/15/2016
ACE Cash Express Inc AACE 11.00 47.00 2/1/2019
ACE Cash Express Inc AACE 11.00 46.50 2/1/2019
AK Steel Corp AKS 7.63 34.55 5/15/2020
Affinion Investments LLC AFFINI 13.50 65.88 8/15/2018
Alcatel-Lucent USA Inc ALUFP 4.63 102.50 7/1/2017
Alcatel-Lucent USA Inc ALUFP 6.75 106.50 11/15/2020
Alpha Appalachia
Holdings Inc ANR 3.25 1.00 8/1/2015
Alpha Natural
Resources Inc ANR 7.50 1.00 8/1/2020
Alpha Natural
Resources Inc ANR 4.88 0.10 12/15/2020
Alpha Natural
Resources Inc ANR 3.75 0.50 12/15/2017
Alpha Natural
Resources Inc ANR 7.50 0.87 8/1/2020
Alpha Natural
Resources Inc ANR 7.50 0.87 8/1/2020
Alta Mesa Holdings LP /
Alta Mesa Finance
Services Corp ALTMES 9.63 29.75 10/15/2018
American Eagle Energy Corp AMZG 11.00 8.00 9/1/2019
American Eagle Energy Corp AMZG 11.00 5.25 9/1/2019
Approach Resources Inc AREX 7.00 28.00 6/15/2021
Appvion Inc APPPAP 9.00 38.00 6/1/2020
Appvion Inc APPPAP 9.00 38.25 6/1/2020
Arch Coal Inc ACI 7.00 0.82 6/15/2019
Arch Coal Inc ACI 7.25 0.84 6/15/2021
Arch Coal Inc ACI 7.25 0.45 10/1/2020
Arch Coal Inc ACI 8.00 1.25 1/15/2019
Arch Coal Inc ACI 9.88 0.92 6/15/2019
Arch Coal Inc ACI 8.00 5.03 1/15/2019
Armstrong Energy Inc ARMS 11.75 36.76 12/15/2019
Atlas Energy Holdings
Operating Co LLC /
Atlas Resource
Finance Corp ARP 7.75 13.50 1/15/2021
Atlas Energy Holdings
Operating Co LLC /
Atlas Resource
Finance Corp ARP 9.25 15.60 8/15/2021
Atwood Oceanics Inc ATW 6.50 36.66 2/1/2020
Avaya Inc AVYA 10.50 31.94 3/1/2021
Avaya Inc AVYA 10.50 32.06 3/1/2021
BPZ Resources Inc BPZR 8.50 4.00 10/1/2017
BPZ Resources Inc BPZR 6.50 5.25 3/1/2015
BPZ Resources Inc BPZR 6.50 3.74 3/1/2049
Basic Energy Services Inc BAS 7.75 26.17 2/15/2019
Berry Petroleum Co LLC LINE 6.75 23.00 11/1/2020
Black Elk Energy Offshore
Operations LLC / Black
Elk Finance Corp BLELK 13.75 5.00 12/1/2015
BreitBurn Energy
Partners LP / BreitBurn
Finance Corp BBEP 7.88 17.00 4/15/2022
BreitBurn Energy
Partners LP / BreitBurn
Finance Corp BBEP 8.63 14.51 10/15/2020
Caesars Entertainment
Operating Co Inc CZR 10.00 31.00 12/15/2018
Caesars Entertainment
Operating Co Inc CZR 6.50 32.00 6/1/2016
Caesars Entertainment
Operating Co Inc CZR 12.75 32.00 4/15/2018
Caesars Entertainment
Operating Co Inc CZR 10.00 30.88 12/15/2018
Caesars Entertainment
Operating Co Inc CZR 5.75 31.00 10/1/2017
Caesars Entertainment
Operating Co Inc CZR 10.00 30.75 12/15/2018
Caesars Entertainment
Operating Co Inc CZR 5.75 12.25 10/1/2017
Caesars Entertainment
Operating Co Inc CZR 10.00 30.75 12/15/2018
Caesars Entertainment
Operating Co Inc CZR 10.00 30.75 12/15/2018
California Resources Corp CRC 5.50 22.75 9/15/2021
California Resources Corp CRC 5.00 27.00 1/15/2020
Chaparral Energy Inc CHAPAR 7.63 21.50 11/15/2022
Chaparral Energy Inc CHAPAR 9.88 26.10 10/1/2020
Chaparral Energy Inc CHAPAR 8.25 22.25 9/1/2021
Chassix Holdings Inc CHASSX 10.00 8.00 12/15/2018
Chassix Holdings Inc CHASSX 10.00 8.00 12/15/2018
Chesapeake Energy Corp CHK 6.50 50.93 8/15/2017
Chesapeake Energy Corp CHK 6.63 27.79 8/15/2020
Chesapeake Energy Corp CHK 3.87 27.36 4/15/2019
Chesapeake Energy Corp CHK 6.13 26.96 2/15/2021
Chesapeake Energy Corp CHK 7.25 36.96 12/15/2018
Chesapeake Energy Corp CHK 2.50 50.75 5/15/2037
Chesapeake Energy Corp CHK 6.88 27.97 11/15/2020
Chesapeake Energy Corp CHK 2.50 48.00 5/15/2037
Claire's Stores Inc CLE 8.88 22.00 3/15/2019
Claire's Stores Inc CLE 7.75 14.88 6/1/2020
Claire's Stores Inc CLE 10.50 47.10 6/1/2017
Claire's Stores Inc CLE 7.75 17.50 6/1/2020
Cliffs Natural
Resources Inc CLF 5.95 20.00 1/15/2018
Cliffs Natural
Resources Inc CLF 4.80 11.00 10/1/2020
Cliffs Natural
Resources Inc CLF 4.88 12.90 4/1/2021
Cliffs Natural
Resources Inc CLF 5.90 13.76 3/15/2020
Cliffs Natural
Resources Inc CLF 6.25 12.96 10/1/2040
Cliffs Natural
Resources Inc CLF 7.75 19.50 3/31/2020
Cliffs Natural
Resources Inc CLF 7.75 19.00 3/31/2020
Colt Defense LLC /
Colt Finance Corp CLTDEF 8.75 1.10 11/15/2017
Colt Defense LLC /
Colt Finance Corp CLTDEF 8.75 1.10 11/15/2017
Community Choice
Financial Inc CCFI 10.75 33.50 5/1/2019
Comstock Resources Inc CRK 10.00 38.00 3/15/2020
Comstock Resources Inc CRK 7.75 12.50 4/1/2019
Comstock Resources Inc CRK 9.50 15.50 6/15/2020
Cumulus Media Holdings Inc CMLS 7.75 37.00 5/1/2019
EP Energy LLC /
Everest Acquisition
Finance Inc EPENEG 9.38 35.25 5/1/2020
EPL Oil & Gas Inc EXXI 8.25 18.00 2/15/2018
EV Energy Partners LP /
EV Energy Finance Corp EVEP 8.00 41.25 4/15/2019
EXCO Resources Inc XCO 7.50 26.81 9/15/2018
EXCO Resources Inc XCO 8.50 19.80 4/15/2022
Eagle Rock Energy Partners
LP / Eagle Rock Energy
Finance Corp EROC 8.38 17.00 6/1/2019
Emerald Oil Inc EOX 2.00 35.50 4/1/2019
Endeavour
International Corp END 12.00 1.02 3/1/2018
Endeavour
International Corp END 12.00 1.02 3/1/2018
Energy & Exploration
Partners Inc ENEXPR 8.00 3.17 7/1/2019
Energy & Exploration
Partners Inc ENEXPR 8.00 3.17 7/1/2019
Energy Conversion
Devices Inc ENER 3.00 7.88 6/15/2013
Energy Future
Holdings Corp TXU 9.75 36.00 10/15/2019
Energy Future
Intermediate Holding
Co LLC / EFIH
Finance Inc TXU 10.00 3.25 12/1/2020
Energy Future
Intermediate Holding
Co LLC / EFIH
Finance Inc TXU 10.00 3.13 12/1/2020
Energy Future
Intermediate Holding
Co LLC / EFIH
Finance Inc TXU 6.88 2.88 8/15/2017
Energy XXI Gulf Coast Inc EXXI 11.00 24.00 3/15/2020
Energy XXI Gulf Coast Inc EXXI 9.25 20.13 12/15/2017
Energy XXI Gulf Coast Inc EXXI 7.50 10.50 12/15/2021
Energy XXI Gulf Coast Inc EXXI 6.88 10.42 3/15/2024
Energy XXI Gulf Coast Inc EXXI 7.75 10.93 6/15/2019
FBOP Corp FBOPCP 10.00 1.84 1/15/2009
FairPoint
Communications Inc/Old FRP 13.13 1.88 4/2/2018
Federal Farm Credit Banks FFCB 1.89 99.91 1/13/2020
Federal Farm Credit Banks FFCB 2.35 100.00 3/14/2022
Federal Farm Credit Banks FFCB 3.63 100.02 11/19/2029
Federal Farm Credit Banks FFCB 3.87 100.02 11/13/2034
Federal Farm Credit Banks FFCB 2.74 100.02 6/22/2023
Federal Home Loan Banks FHLB 2.25 100.03 1/25/2023
Federal Home Loan Banks FHLB 3.10 100.04 6/18/2025
Federal Home Loan Banks FHLB 1.63 100.01 7/22/2019
Federal Home Loan Banks FHLB 1.25 100.00 1/22/2019
Federal Home Loan Banks FHLB 3.05 100.04 5/28/2025
Federal Home Loan
Mortgage Corp FHLMC 3.00 99.99 4/25/2028
Federal Home Loan
Mortgage Corp FHLMC 3.00 99.95 4/24/2028
Federal National
Mortgage Association FNMA 2.00 100.00 1/20/2021
Fleetwood Enterprises Inc FLTW 14.00 3.56 12/15/2011
Forbes Energy Services Ltd FES 9.00 42.40 6/15/2019
GT Advanced
Technologies Inc GTAT 3.00 0.07 10/1/2017
GT Advanced
Technologies Inc GTAT 3.00 0.30 12/15/2020
Gastar Exploration Inc GST 8.63 49.00 5/15/2018
Genworth Holdings Inc GNW 8.63 106.05 12/15/2016
Getty Images Inc GYI 7.00 31.20 10/15/2020
Goodman Networks Inc GOODNT 12.13 34.09 7/1/2018
Goodrich Petroleum Corp GDPM 8.88 4.38 3/15/2018
Goodrich Petroleum Corp GDPM 8.88 5.85 3/15/2019
Goodrich Petroleum Corp GDPM 5.00 7.00 10/1/2032
Goodrich Petroleum Corp GDPM 8.88 4.00 3/15/2018
Goodrich Petroleum Corp GDPM 8.88 5.25 3/15/2019
Goodrich Petroleum Corp GDPM 8.88 5.25 3/15/2019
Gymboree Corp/The GYMB 9.13 27.75 12/1/2018
Halcon Resources Corp HKUS 9.75 23.00 7/15/2020
Halcon Resources Corp HKUS 8.88 20.00 5/15/2021
Halcon Resources Corp HKUS 13.00 26.25 2/15/2022
Halcon Resources Corp HKUS 9.25 22.97 2/15/2022
Hexion Inc HXN 9.20 28.25 3/15/2021
Horsehead Holding Corp ZINC 3.80 7.12 7/1/2017
Horsehead Holding Corp ZINC 10.50 56.00 6/1/2017
ION Geophysical Corp IO 8.13 47.00 5/15/2018
Iconix Brand Group Inc ICON 2.50 82.09 6/1/2016
Iconix Brand Group Inc ICON 1.50 43.25 3/15/2018
Interactive Network Inc /
FriendFinder
Networks Inc FFNT 14.00 66.50 12/20/2018
Key Energy Services Inc KEG 6.75 19.50 3/1/2021
Las Vegas Monorail Co LASVMC 5.50 3.00 7/15/2019
Legacy Reserves LP /
Legacy Reserves
Finance Corp LGCY 8.00 27.90 12/1/2020
Legacy Reserves LP /
Legacy Reserves
Finance Corp LGCY 6.63 22.75 12/1/2021
Lehman Brothers
Holdings Inc LEH 5.00 5.50 2/7/2009
Lehman Brothers
Holdings Inc LEH 4.00 5.50 4/30/2009
Lehman Brothers Inc LEH 7.50 2.50 8/1/2026
Linn Energy LLC /
Linn Energy
Finance Corp LINE 8.63 15.25 4/15/2020
Linn Energy LLC /
Linn Energy
Finance Corp LINE 6.50 14.01 5/15/2019
Linn Energy LLC /
Linn Energy
Finance Corp LINE 7.75 11.10 2/1/2021
Linn Energy LLC /
Linn Energy
Finance Corp LINE 6.25 13.25 11/1/2019
Linn Energy LLC /
Linn Energy
Finance Corp LINE 6.50 11.25 9/15/2021
Linn Energy LLC / Linn
Energy Finance Corp LINE 6.25 12.00 11/1/2019
Linn Energy LLC / Linn
Energy Finance Corp LINE 6.25 12.00 11/1/2019
Logan's Roadhouse Inc LGNS 10.75 22.93 10/15/2017
MF Global Holdings Ltd MF 3.38 22.25 8/1/2018
MF Global Holdings Ltd MF 9.00 22.25 6/20/2038
MModal Inc MODL 10.75 10.13 8/15/2020
Magnetation LLC /
Mag Finance Corp MAGNTN 11.00 6.00 5/15/2018
Magnetation LLC /
Mag Finance Corp MAGNTN 11.00 9.50 5/15/2018
Magnetation LLC /
Mag Finance Corp MAGNTN 11.00 9.50 5/15/2018
Magnum Hunter
Resources Corp MHRC 9.75 26.75 5/15/2020
Memorial Production
Partners LP / Memorial
Production Finance Corp MEMP 7.63 25.13 5/1/2021
Memorial Production
Partners LP / Memorial
Production Finance Corp MEMP 6.88 24.75 8/1/2022
Midstates Petroleum
Co Inc / Midstates
Petroleum Co LLC MPO 10.00 25.03 6/1/2020
Midstates Petroleum
Co Inc / Midstates
Petroleum Co LLC MPO 10.75 7.00 10/1/2020
Midstates Petroleum
Co Inc / Midstates
Petroleum Co LLC MPO 9.25 7.50 6/1/2021
Midstates Petroleum
Co Inc / Midstates
Petroleum Co LLC MPO 10.75 7.63 10/1/2020
Midstates Petroleum
Co Inc / Midstates
Petroleum Co LLC MPO 10.75 7.63 10/1/2020
Modular Space Corp MODSPA 10.25 35.00 1/31/2019
Modular Space Corp MODSPA 10.25 34.75 1/31/2019
Molycorp Inc MCP 10.00 13.88 6/1/2020
Morgan Stanley & Co LLC MS 2.41 96.00 2/28/2016
Murray Energy Corp MURREN 11.25 17.88 4/15/2021
Murray Energy Corp MURREN 11.25 24.25 4/15/2021
Murray Energy Corp MURREN 9.50 17.88 12/5/2020
Murray Energy Corp MURREN 9.50 17.88 12/5/2020
Navient Corp NAVI 5.75 100.00 12/15/2017
New Gulf Resources LLC/
NGR Finance Corp NGREFN 12.25 9.13 5/15/2019
New Gulf Resources LLC/
NGR Finance Corp NGREFN 12.25 23.50 5/15/2019
New Gulf Resources LLC/
NGR Finance Corp NGREFN 12.25 16.25 5/15/2019
Nine West Holdings Inc JNY 8.25 23.25 3/15/2019
Nine West Holdings Inc JNY 6.13 15.73 11/15/2034
Nine West Holdings Inc JNY 6.88 19.07 3/15/2019
Nine West Holdings Inc JNY 8.25 23.25 3/15/2019
Noranda Aluminum
Acquisition Corp NOR 11.00 10.65 6/1/2019
Nuverra Environmental
Solutions Inc NES 9.88 24.70 4/15/2018
Peabody Energy Corp BTU 6.00 12.73 11/15/2018
Peabody Energy Corp BTU 6.50 7.36 9/15/2020
Peabody Energy Corp BTU 6.25 8.10 11/15/2021
Peabody Energy Corp BTU 10.00 17.00 3/15/2022
Peabody Energy Corp BTU 4.75 5.00 12/15/2041
Peabody Energy Corp BTU 7.88 6.42 11/1/2026
Peabody Energy Corp BTU 10.00 22.24 3/15/2022
Peabody Energy Corp BTU 6.00 12.38 11/15/2018
Peabody Energy Corp BTU 6.25 8.25 11/15/2021
Peabody Energy Corp BTU 6.00 17.25 11/15/2018
Peabody Energy Corp BTU 6.25 8.25 11/15/2021
Penn Virginia Corp PVAH 8.50 16.73 5/1/2020
Penn Virginia Corp PVAH 7.25 14.68 4/15/2019
Pepperdine University PEPPER 5.45 111.44 8/1/2019
Permian Holdings Inc PRMIAN 10.50 39.00 1/15/2018
Permian Holdings Inc PRMIAN 10.50 38.63 1/15/2018
PetroQuest Energy Inc PQ 10.00 59.39 9/1/2017
Prospect Holding Co LLC /
Prospect Holding
Finance Co PRSPCT 10.25 50.50 10/1/2018
Prospect Holding Co LLC /
Prospect Holding
Finance Co PRSPCT 10.25 52.00 10/1/2018
Quicksilver Resources Inc KWKA 9.13 2.75 8/15/2019
Quicksilver Resources Inc KWKA 11.00 2.50 7/1/2021
Quiksilver Inc /
QS Wholesale Inc ZQK 10.00 3.66 8/1/2020
RAIT Financial Trust RAS 7.00 90.20 4/1/2031
RS Legacy Corp RSH 6.75 0.22 5/15/2019
Resolute Energy Corp REN 8.50 36.00 5/1/2020
Rex Energy Corp REXX 6.25 13.90 8/1/2022
Sabine Oil & Gas Corp SOGC 7.25 6.50 6/15/2019
Sabine Oil & Gas Corp SOGC 9.75 4.75 2/15/2017
Sabine Oil & Gas Corp SOGC 7.50 6.50 9/15/2020
Sabine Oil & Gas Corp SOGC 7.50 6.88 9/15/2020
Sabine Oil & Gas Corp SOGC 7.50 6.88 9/15/2020
SandRidge Energy Inc SD 8.75 20.75 6/1/2020
SandRidge Energy Inc SD 7.50 4.50 3/15/2021
SandRidge Energy Inc SD 8.13 4.25 10/15/2022
SandRidge Energy Inc SD 8.75 6.00 1/15/2020
SandRidge Energy Inc SD 7.50 5.00 2/15/2023
SandRidge Energy Inc SD 8.13 4.99 10/16/2022
SandRidge Energy Inc SD 7.50 4.99 2/16/2023
SandRidge Energy Inc SD 7.50 4.47 3/15/2021
SandRidge Energy Inc SD 7.50 4.47 3/15/2021
Sequa Corp SQA 7.00 32.00 12/15/2017
Sequa Corp SQA 7.00 31.75 12/15/2017
Seventy Seven Energy Inc SSE 6.50 10.88 7/15/2022
Seventy Seven
Operating LLC SSE 6.63 32.25 11/15/2019
Speedy Cash Intermediate
Holdings Corp SPEEDY 10.75 57.00 5/15/2018
SquareTwo Financial Corp SQRTW 11.63 42.75 4/1/2017
SunEdison Inc SUNE 2.00 31.67 10/1/2018
Swift Energy Co SFY 7.88 11.25 3/1/2022
Swift Energy Co SFY 7.13 9.30 6/1/2017
Swift Energy Co SFY 8.88 8.50 1/15/2020
Syniverse Holdings Inc SVR 9.13 41.50 1/15/2019
TMST Inc THMR 8.00 15.25 5/15/2013
Talos Production LLC /
Talos Production
Finance Inc TALPRO 9.75 43.50 2/15/2018
Talos Production LLC /
Talos Production
Finance Inc TALPRO 9.75 44.00 2/15/2018
Terrestar Networks Inc TSTR 6.50 10.00 6/15/2014
TetraLogic
Pharmaceuticals Corp TLOG 8.00 26.50 6/15/2019
Texas Competitive
Electric Holdings
Co LLC / TCEH
Finance Inc TXU 10.25 5.88 11/1/2015
Texas Competitive
Electric Holdings
Co LLC / TCEH
Finance Inc TXU 11.50 32.00 10/1/2020
Texas Competitive
Electric Holdings
Co LLC / TCEH
Finance Inc TXU 15.00 6.15 4/1/2021
Texas Competitive
Electric Holdings
Co LLC / TCEH
Finance Inc TXU 10.50 6.50 11/1/2016
Texas Competitive
Electric Holdings
Co LLC / TCEH
Finance Inc TXU 11.50 32.00 10/1/2020
Texas Competitive
Electric Holdings
Co LLC / TCEH
Finance Inc TXU 10.25 7.00 11/1/2015
Texas Competitive
Electric Holdings
Co LLC / TCEH
Finance Inc TXU 15.00 6.15 4/1/2021
Texas Competitive
Electric Holdings
Co LLC / TCEH
Finance Inc TXU 10.50 5.38 11/1/2016
Texas Competitive
Electric Holdings
Co LLC / TCEH
Finance Inc TXU 10.25 6.75 11/1/2015
UCI International LLC UCII 8.63 32.13 2/15/2019
Vanguard Natural
Resources LLC /
VNR Finance Corp VNR 7.88 21.10 4/1/2020
Venoco Inc VQ 8.88 13.49 2/15/2019
Verso Paper Holdings LLC /
Verso Paper Inc VRS 11.75 17.12 1/15/2019
Verso Paper Holdings LLC /
Verso Paper Inc VRS 11.75 18.50 1/15/2019
Verso Paper Holdings LLC /
Verso Paper Inc VRS 11.75 4.30 1/15/2019
Verso Paper Holdings LLC /
Verso Paper Inc VRS 8.75 0.27 2/1/2019
Verso Paper Holdings LLC /
Verso Paper Inc VRS 13.00 1.35 8/1/2020
Verso Paper Holdings LLC /
Verso Paper Inc VRS 11.75 0.37 1/15/2019
Verso Paper Holdings LLC /
Verso Paper Inc VRS 11.75 18.13 1/15/2019
Verso Paper Holdings LLC /
Verso Paper Inc VRS 11.75 18.13 1/15/2019
Verso Paper Holdings LLC /
Verso Paper Inc VRS 11.75 0.37 1/15/2019
W&T Offshore Inc WTI 8.50 30.10 6/15/2019
Walter Energy Inc WLTG 9.50 28.44 10/15/2019
Walter Energy Inc WLTG 8.50 0.03 4/15/2021
Walter Energy Inc WLTG 9.50 28.50 10/15/2019
Walter Energy Inc WLTG 9.50 28.50 10/15/2019
Walter Energy Inc WLTG 9.50 28.50 10/15/2019
Warren Resources Inc WRES 9.00 9.50 8/1/2022
Warren Resources Inc WRES 9.00 9.50 8/1/2022
Warren Resources Inc WRES 9.00 9.50 8/1/2022
iHeartCommunications Inc IHRT 10.00 42.25 1/15/2018
*********
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 ***