/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/160405.mbx T R O U B L E D C O M P A N Y R E P O R T E R Tuesday, April 5, 2016, Vol. 20, No. 96 Headlines 18 SHERMAN AVE: Voluntary Chapter 11 Case Summary 207 AINSLIE: Case Summary & 12 Unsecured Creditors A C MOBILE: Voluntary Chapter 11 Case Summary ABENGOA BIOENERGY: 341 Meeting of Creditors Set for April 12 ADELPHIA COMMUNICATIONS: Extends Exchange Offers Under Ch.11 Plan ADM VENDING: Case Summary & 20 Largest Unsecured Creditors ALABAMA-MISSISSIPPI FARM: Voluntary Chapter 11 Case Summary ALPHA NATURAL: Wants Mark Manno Designated as Responsible Person AMERICAN HOSPICE: Hires Dentons US as Counsel AMERICAN HOSPICE: Hires Kurtzman Carson as Admin Advisor AMERICAN HOSPICE: Hires Pachulski Stang as Co-Counsel AMPLIPHI BIOSCIENCES: Incurs $10.8 Million Net Loss in 2015 ANACOR PHARMACEUTICALS: Proposes to Offer $250M Senior Notes ANTERO ENERGY: Court Approves Frank Broyles as Counsel ARCH COAL: Lenders Want Exit Plan Filed by April 26 ASHLAND INC: S&P Raises Rating on Subordinated Notes to 'BB' ASPECT SOFTWARE: 341 Meeting of Creditors Set for April 14 ASPECT SOFTWARE: Moody's Lowers CFR to Caa3, Outlook Stable ASSIST-MED INC: Voluntary Chapter 11 Case Summary ATK OILFIELD: Chapter 15 Case Summary ATK OILFIELD: Seeks U.S. Recognition of Canadian Proceedings BASIC ENERGY: Board OKs Performance-Based Phantom Stock Awards BAYTEX CREDIT: Case Summary & 3 Unsecured Creditors BG MEDICINE: To Voluntarily Deregister Common Stock BH SUTTON: Lender Asks Court to Dismiss Ch. 11 Case BREF HR: Incurs $120 Million Net Loss in 2015 BROCK HOLDINGS: Moody's Lowers CFR to Caa1, Outlook Negative BROOKLYN EVENTS: Voluntary Chapter 11 Case Summary BROOKLYN RENAISSANCE: Lists $27MM in Assets, $17.5MM in Debts BUFFINGTON MASON: Case Summary & 5 Unsecured Creditors CAPITOL LAKES: Creditors' Panel Taps Grant Thornton as Consultant CAPITOL LAKES: Hires DLA Piper as Bankruptcy Counsel CATASYS INC: Reports $7.22 Million Net Loss for 2015 CEETOP INC: Needs More Time to File 2015 Form 10-K CHAPARRAL ENERGY: Reports $1.33 Billion Net Loss for 2015 CHARTER COMMUNICATIONS: Fitch Maintains BB- IDR on Watch Positive CLEANFUEL USA: Case Summary & 20 Largest Unsecured Creditors COLORADO TIRE: 341 Meeting of Creditors Set for April 15 COMSTOCK MINING: Closes Public Offering of $3.5M Common Stock COMSTOCK MINING: Partners with American Mining for Mining Services CONGREGATION BIRCHOS: Court to Hear Plan Confirmation May 3 CORD BLOOD: Reports $438,000 Net Income for 2015 COYNE INTERNATIONAL: Harbridge Okayed as Pension Consultant CUMULUS MEDIA: Amends Employment Agreements with Executives DOLPHIN DIGITAL: Delays Filing of 2015 Form 10-K DOLPHIN DIGITAL: Incurs $4.05 Million Net Loss in 2015 DRAFTDAY FANTASY: Board OKs Exchange Agreement with MGT DRAFTDAY FANTASY: Draws Entire $1.5M Under SIC VI Facility DRAFTDAY FANTASY: Has $500,000 Financing Pact With CEO Affiliate DRAFTDAY FANTASY: May Issue 150 Shares Under New CL-D Pref. Stock DRAFTDAY FANTASY: Mulls Possible Reorganization ELEPHANT TALK: Incurs $5 Million Net Loss in 2015 ELITE ENERGY: Case Summary & 20 Largest Unsecured Creditors EMEKS REALTY: Case Summary & 16 Unsecured Creditors EMERALD OIL: April 19 Final Hearing on Equity Trading Protocol ESCO MARINE: Gets Approval to Settle Dispute With Thalheimer EXTREME PLASTICS PLUS: Proposes May 23 Deadline for Filing Claims FANNIE MAE & FREDDIE MAC: A Third Look at the Implicit Guarantee FINJAN HOLDINGS: Provides Update on Challenges to Its Patents FORESIGHT ENERGY: Further Extends Forbearance Pacts to April 5 FOREVERGREEN WORLDWIDE: Incurs $2.62 Million Net Loss in 2015 FOUNDATION HEALTHCARE: Reports $5.2 Million Net Income for 2015 FREEDOM COMMUNICATIONS: Gets More Time to Decide on Leases FRONTIER COMMUNICATIONS: Fitch Affirms 'BB' Issuer Default Rating FUEL PERFORMANCE: Incurs $1.92 Million Net Loss in 2015 GASTAR EXPLORATION: Provides Operational Update GELTECH SOLUTIONS: Files Transition Report on Form 10K-T GENIUS BRANDS: Incurs $3.48 Million Net Loss in 2015 GLYECO INC: Delays 2015 Form 10-K to Complete Audit GOLD RIVER VALLEY: Court OKs Lone Oak Deal, Closes Case GRAHAM GULF: Objects to Dafour's Fees, Costs and Expenses GREAT LAKES COMNET: Committee Hires Jaffe Raitt as Local Counsel GREAT LAKES COMNET: Creditors' Committee Taps Cooley as Counsel GREAT LAKES COMNET: U.S. Trustee Appoints 7-Member Committee GREAT LAKES: Has Final Court OK to Borrow $5.5-Mil. from CoBank GUIDED THERAPEUTICS: Issues Letter to Shareholders HAGGEN HOLDINGS: Seeks $68-Mil. Refinance of DIP Facility HANCOCK FABRICS: Court Okays GOB Sales for 185 Outlets HEMCON MEDICAL: Court to Hold Hearing on Asset Sale April 6 HHH CHOICES: Court Approves Alston & Bird as Committee Counsel HHH CHOICES: Patient Care Ombudsman Taps Gibbons as Counsel HIGH RIDGE: Gets Court Approval to Pay 2015 Income Tax HORSEHEAD HOLDING: Panel Hires Drinker Biddle as Co-counsel HORSEHEAD HOLDING: Taps Klehr Harrison as Harvey Tepner's Counsel HORSEHEAD HOLDING: Zochem OK'd as Canadian Foreign Representative INSIGHT GLOBAL: Moody's Affirms 'B1' Corporate Family Rating INTERNATIONAL TECHNICAL: Gets Court Approval to Hire Dinsmore INVENTIV HEALTH: Paul Meister Resigns as Director INVERSIONES ARAXI: Case Summary & 11 Unsecured Creditors IRONSTONE GROUP: Delays 2015 Annual Report Over CFO Resignation JAMES RIVER COAL: Court Confirms 2nd Amended Liquidation Plan KEITHVILLE WELL: Case Summary & 20 Largest Unsecured Creditors KIRWAN OFFICES: Lapidem, Mascini Want Plan Exclusivity Terminated LATTICE INC: Delays 2015 Form 10-K for Review LEE STEEL: Changes Name to LSC Liquidation Following Asset Sale LEE STEEL: Wants Union Partners to Give Access to Information LEO MOTORS: Reports $4.49 Million Net Loss for 2015 LIME ENERGY: Incurs $4.44 Million Net Loss in 2015 LIONS GATE: Moody's Affirms Ba3 CFR & Changes Outlook to Negative LIQUID HOLDINGS: Case Converted to Chapter 7 Liquidation MARINA BIOTECH: Provides 2015 Year-End Financials and Update MARINA BIOTECH: Reports $2.64 Million Net Income for 2015 MBB MANAGEMENT: Voluntary Chapter 11 Case Summary MGM GROWTH: Moody's Assigns '(P)B1' CFR, Outlook Stable MIDSTATES PETROLEUM: Reports $1.79 Billion Net Loss for 2015 MILESTONE SCIENTIFIC: Needs More Time to File 2015 Annual Report MOLYCORP INC: Court Confirms 4th Joint Amended Reorganization Plan MOLYCORP INC: Milbank Advised Oakley in Ch. 11 Case MOLYCORP INC: Wells Fargo, Noteholders vs. Collateral Surcharge MOLYCORP: Wants Tolleson Assets Sold to Eutectix for $2.5M N-VIRO INTERNATIONAL: Delays Filing of 2015 Annual Report NAS HOLDINGS: Case Summary & 9 Unsecured Creditors NATURAL MOLECULAR: Redmond Seeks to Foreclose on Wash. Property NEPHROS INC: Reports $3.08 Million Net Loss for 2015 NET DATA: Exclusivity Plan Proposal Period Extended to June 1 NET ELEMENT: Reports $13.3 Million Net Loss for 2015 NEW GULF RESOURCES: Defends Baker Botts Fee Premium NEW GULF RESOURCES: Grant Thornton Okayed as Independent Auditor NEWZOOM INC: Court Approves FTI Consulting Employment NNN DORAL COURT 3: Trustee Serving as Plan Administrator NORTH AMERICAN REALTY: Voluntary Chapter 11 Case Summary NORTH LAS VEGAS, NV: Fitch Affirms 'B' Rating on LTGO Bonds NORTHWEST TERRITORIAL: Case Summary & 20 Top Unsecured Creditors NOVINDA CORP: Case Summary & 20 Largest Unsecured Creditors NUO THERAPEUTICS: Has Final Court OK to Tap $6-Mil. DIP Financing OMNICOMM SYSTEMS: Posts $2.40 Million Net Income for 2015 ONEMAIN HOLDINGS: Moody's Affirms B3 CFR on SpringCastle Stake Sale OXYSURE THERAPEUTICS: Delays Filing of 2015 Annual Report PARAGON OFFSHORE: Hires Clyde & Co as Special Counsel PARAGON OFFSHORE: Hires Weil Gotshal as Attorneys PARAGON OFFSHORE: Wants to Pay Advisors' Professional Fees PATSY JEAN: Voluntary Chapter 11 Case Summary PHILADELPHIA SCHOOL: Moody's Affirms Ba3 Rating on $3.1BB GO Debt PLASTIC2OIL INC: Delays Filing of 2015 Annual Report POSITRON CORP: Needs More Time to File 2015 Form 10-K POSTROCK ENERGY: Case Summary & 20 Largest Unsecured Creditors POSTROCK ENERGY: Consents to Appointment of a Chapter 11 Trustee POSTROCK ENERGY: Files for Ch. 11 Protection to Facilitate Sale PRA HEALTH: S&P Raises CCR to 'BB-', Outlook Stable PRECYSE ACQUISITION: S&P Lowers CCR to 'B-', Outlook Stable PRESSURE BIOSCENCES: Delays Filing of Form 10-K Report PRIMORSK SHIPPING: Drops Restructuring Plans to Pursue Sale PURADYN FILTER: Incurs $1.44 Million Net Loss in 2015 RCS CAPITAL: Creditors' Panel Hires FTI as Financial Advisor RCS CAPITAL: Creditors' Panel Hires Gibson Dunn as Counsel RCS CAPITAL: Creditors' Panel Hires Klehr Harrison as Co-counsel RCS CAPITAL: Prime Clerk Approved as Claims and Noticing Agent REX ENERGY: Moody's Lowers CFR to Ca, Outlook Remains Negative REXFORD PROPERTIES: Hires Palmer to Appraise Island Waterpark RICEBRAN TECHNOLOGIES: Reports $10.6 Million Net Loss for 2015 RIVERSIDE PLAZA: Seeks April 12 Extension of Schedules RIVERSIDE PLAZA: Seeks to Use UCF Cash Collateral SANUWAVE HEALTH: Incurs $4.81 Million Net Loss in 2015 SARATOGA RESOURCES: Balks at ERG Bid to Convert Case SCRUB ISLAND: Reorganized SIDG Can Borrow $6MM from J. Appleton SDI SOLUTIONS: 341 Meeting of Creditors Set for April 22 SEA SHELL COLLECTIONS: Case Summary & 8 Unsecured Creditors SOUTHCROSS ENERGY: S&P Lowers CCR to 'CCC+', Outlook Negative SPANISH BROADCASTING: Delays Filing of 2015 Annual Report SQUARETWO FINANCIAL: S&P Lowers ICR to 'D' on Missed Payment STELLAR BIOTECHNOLOGIES: TSX-V Delisting Takes Effect April 8 STEWARD HEALTH: Moody's Raises CFR to B2, Outlook Stable SUNDEVIL POWER: Hires Drinker Biddle as Counsel SUNDEVIL POWER: Hires Garden City as Administrative Agent SUNDEVIL POWER: Hires Jefferies as Financial Advisor SUNVALLEY SOLAR: Needs More Time to File 10-K TELEFLEX INC: S&P Raises CCR to 'BB+', Outlook Stable TELKONET INC: Hires Canaccord Genuity as Financial Advisor TELKONET INC: Incurs $207,000 Net Loss in 2015 TERRAFORM GLOBAL: S&P Affirms 'B-' ICR, Outlook Remains Stable TERRAFORM POWER: S&P Affirms 'B-' ICR, Outlook Remains Stable TEXARKANA HOTELS: Voluntary Chapter 11 Case Summary TONGJI HEALTHCARE: Delays Filing of 2015 Form 10-K TRANS COASTAL: Seeks July 20 Extension for Chapter 11 Plan Filing TRANS-LUX CORP: Reports Significantly Improved 2015 Results TRANSGENOMIC INC: Delays Filing of 2015 Annual Report TRICORBRAUN INC: S&P Affirms 'B' LongTerm CCR, Outlook Stable TRISTREAM EAST: Case Summary & 20 Largest Unsecured Creditors TUCSON COUNTY SCHOOL: S&P Alters Outlook on BB Rating to Stable UNI-PIXEL INC: Incurs $37 Million Net Loss in 2015 UNITED BANCSHARES: Delays Filing of 2015 Form 10-K VERITEQ CORP: Needs More Time to File 2015 Form 10-K VERIZON COMMUNICATIONS: Subsidiary Debt Ratings Raised, S&P Says VERMILLION INC: Incurs $19.1 Million Net Loss in 2015 VERSO CORP: NewPage Taps Latham & Watkins as Conflicts Counsel VERSO CORP: Taps Paul Weiss to Handle General Corporate Matters VERSO CORP: Taps Whiteford Taylor as Delaware Conflicts Counsel VICTORY ENERGY: Needs More Time to File 2015 Annual Report VISCOUNT SYSTEMS: Delays Filing of 2015 Annual Report VISUALANT INC: Files Resale Prospectus with SEC VYCOR MEDICAL: Incurs $2.25 Million Net Loss in 2015 ZAYO GROUP: Moody's Raises Rating on Sr. Unsecured Notes to B3 [*] Moody's Concludes Rating Reviews on 3 US B-Rated E&P Companies [*] Shinjiro Takagi Joins Morgan Lewis' Tokyo Office as Of Counsel [^] Large Companies with Insolvent Balance Sheet ********* 18 SHERMAN AVE: Voluntary Chapter 11 Case Summary ------------------------------------------------- Debtor: 18 Sherman Ave LLC 1200 East Putnam Avenue Riverside, CT 06878 Case No.: 16-50466 Chapter 11 Petition Date: April 1, 2016 Court: United States Bankruptcy Court District of Connecticut (Bridgeport) Judge: Hon. Ann M. Nevins Debtor's Counsel: Frank G. Corazzelli, Esq. KASURI & CORAZZELLI , LLC 4 Research Drive, Suite 402 One Reservoir Corporate Center Shelton, CT 06484 Tel: (203) 706-5920 E-mail: fecoraz@optonline.com kasurilawoffices@gmail.com Total Assets: $4.12 million Total Liabilities: $9.07 million The petition was signed by Pamela P. Gabriel, managing member. The Debtor did not include a list of its largest unsecured creditors when it filed the petition. 207 AINSLIE: Case Summary & 12 Unsecured Creditors -------------------------------------------------- Debtor: 207 Ainslie, LLC 100A Broadway, #110 Brooklyn, NY 11249 Case No.: 16-41426 Type of Business: Single Asset Real Estate Chapter 11 Petition Date: April 1, 2016 Court: United States Bankruptcy Court Eastern District of New York (Brooklyn) Judge: Hon. Nancy Hershey Lord Debtor's Counsel: Kevin J Nash, Esq. GOLDBERG WEPRIN FINKEL GOLDSTEIN LLP 1501 Broadway, 22nd Floor New York, NY 10036 Tel: (212) 301-6944 Fax: (212) 422-6836 E-mail: KNash@gwfglaw.com Total Assets: $14 million Total Debts: $5.07 million The petition was signed by Harry Einhorn, manager. List of Debtor's 12 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ AAA Group Surveying Services $12,500 Active Environmental Services $11,600 Axle RR Services $180,000 Boris Sasks Esq., PLLC Legal Services $23,000 FCT Contruction LLC Services $196,680 JDI Brokerage Services $18,000 Republic Valuation Services $12,000 Salamon Engineering Services $14,800 Sidraine & Sidraine Legal Services $58,000 Strekte LLC Services $260,000 BO Box 21041 Brooklyn, NY 11202-1041 Titan Engineers, P.C. Services $14,500 ZCCG Architects Architectural $78,000 Services A C MOBILE: Voluntary Chapter 11 Case Summary --------------------------------------------- Debtor: A C Mobile, Inc. dba A C Gulf 5715 Lookout Mountain Drive Houston, TX 77069 Case No.: 16-31629 Chapter 11 Petition Date: April 3, 2016 Court: United states Bankruptcy Court Southern District of Texas (Houston) Judge: Hon. Karen K. Brown Debtor's Counsel: Margaret Maxwell McClure, Esq. LAW OFFICE OF MARGARET M. MCCLURE 909 Fannin, Suite 3810 Houston, TX 77010 Tel: 713-659-1333 Fax: 713-658-0334 Email: margaret@mmmcclurelaw.com Total Assets: $680,758 Total Liabilities: $2.27 million The petition was signed by Mike Y. Zaghbour, president. The Debtor did not include a list of its largest unsecured creditors when it filed the petition. ABENGOA BIOENERGY: 341 Meeting of Creditors Set for April 12 ------------------------------------------------------------ The meeting of creditors of Abengoa Bioenergy US Holding LLC and its affiliates is set to be held on April 12, 2016, at 11:00 a.m., according to a filing with the U.S. Bankruptcy Court for the Eastern District of Missouri. The meeting will be held at Thomas F. Eagleton U. S. Courthouse, Suite 21.130 (Conference Room B), 111 South 10th Street, St. Louis, Missouri. The court overseeing the bankruptcy case of a company schedules the meeting of creditors usually about 30 days after the bankruptcy petition is filed. The meeting is called the "341 meeting" after the section of the Bankruptcy Code that requires it. A representative of the company is required to appear at the meeting and answer questions under oath. The meeting is presided over by the U.S. trustee, the Justice Department's bankruptcy watchdog. About Abengoa Bionergy Abengoa Bioenergy is a collection of indirect subsidiaries of Abengoa S.A. ("Abengoa"), a Spanish company founded in 1941. The global headquarters of Abengoa Bioenergy is in Chesterfield, Missouri. With a total investment of $3.3 billion, the United States has become Abengoa S.A.'s largest market in terms of sales volume, particularly from developing solar, bioethanol, and water projects. On Feb. 24, 2016, Abengoa Bioenergy US Holding, LLC and five affiliated debtors each filed a Chapter 11 voluntary petition in St. Louis, Missouri, disclosing total assets of $1.3 billion and debt of $1.2 billion. The cases are pending before the Honorable Kathy A. Surratt-States and are jointly administered under Bankr. E.D. Mo. Case No. 16-41161. The Debtors have engaged DLA Piper LLP (US) as counsel, Armstrong Teasdale LLP as co-counsel, Alvarez & Marsal North America, LLC as financial advisor, Lazard as investment banker and Prime Clerk LLC as claims and noticing agent. About Abengoa S.A. Spanish energy giant Abengoa S.A. is a leading engineering and clean technology company with operations in more than 50 countries worldwide that provides innovative solutions for a diverse range of customers in the energy and environmental sectors. Abengoa is one of the world's top builders of power lines transporting energy across Latin America and a top engineering and construction business, making massive renewable-energy power plants worldwide. As of the end of 2015, Abengoa, S.A. was the parent company of 687 other companies around the world, including 577 subsidiaries, 78 associates, 31 joint ventures, and 211 Spanish partnerships. Additionally, the Abengoa Group held a number of other interests of less than 20% in other entities. On Nov. 25, 2015 in Spain, Abengoa S.A. announced its intention to seek protection under Article 5bis of Spanish insolvency law, a pre-insolvency statute that permits a company to enter into negotiations with certain creditors for restricting of its financial affairs. The Spanish company is facing a March 28, 2016, deadline to agree on a viability plan or restructuring plan with its banks and bondholders, without which it could be forced to declare bankruptcy. On March 16, 2016, Abengoa presented its Business Plan and Financial Restructuring Plan in Madrid to all of its stakeholders. U.S. Bankruptcies Abengoa, S.A., and 24 of its subsidiaries filed Chapter 15 petitions (Bankr. D. Del. Case Nos. 16-10754 to 16-10778) on March 28, 2016, to seek U.S. recognition of its restructuring proceedings in Spain. Christopher Morris signed the petitions as foreign representative. DLA Piper LLP (US) represents the Debtors as counsel. Gavilon Grain, LLC, et al., on Feb. 1, 2016, filed an involuntary Chapter 7 petition for Abengoa Bioenergy of Nebraska, LLC ("ABNE") and on Feb. 11, 2016, filed an involuntary Chapter 7 petition for Abengoa Bioenergy Company, LLC ("ABC"). ABC's involuntary Chapter 7 case is Bankr. D. Kan. Case No. 16-20178. ABNE's involuntary case is Bankr. D. Neb. Case No. 16-80141. An order for relief has not been entered, and no interim Chapter 7 trustee has been appointed in the Involuntary Cases. The petitioning creditors are represented by McGrath, North, Mullin & Kratz, P.C. On Feb. 24, 2016, Abengoa Bioenergy US Holding, LLC and 5 five other U.S. units of Abengoa S.A., which collectively own, operate, and/or service four ethanol plants in Ravenna, York, Colwich, and Portales, each filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Eastern District of Missouri. The cases are pending before the Honorable Kathy A. Surratt-States and are jointly administered under Case No. 16-41161. Abeinsa Holding Inc., and 12 other affiliates, which are energy, engineering and environmental companies and indirect subsidiaries of Abengoa, filed Chapter 11 bankruptcy petitions (Bankr. D. Del. Proposed Lead Case No. 16-10790) on March 29, 2016. ADELPHIA COMMUNICATIONS: Extends Exchange Offers Under Ch.11 Plan ----------------------------------------------------------------- ACC Claims Holdings, LLC announced the extension of offers to Eligible Holders to exchange (i) class A limited liability company interests of ACC Claims Holdings, LLC for up to all of the outstanding ACC Senior Notes Claims (Class ACC 3) allowed under the Plan of Reorganization, including any post-petition pre-effective date interest and post-effective date interest to and including the extended expiration date of the offers (the "Senior Claims"), against Adelphia Communications Corporation, and (ii) class B limited liability company interests of ACC Claims Holdings, LLC for up to all of the outstanding ACC Trade Claims (Class ACC 4) allowed under the Plan of Reorganization, including any post-petition pre-effective date interest and post-effective date interest to and including the extended expiration date of the offers (the "ACC 4 Claims"), and ACC Other Unsecured Claims (Class ACC 5) allowed under the Plan of Reorganization, including any post-petition pre-effective date interest and post-effective date interest to and including the extended expiration date of the offers (the "ACC 5 Claims" and, together with the ACC 4 Claims, the "Other Claims"; the Senior Claims and the Other Claims, together, the "Claims"), against Adelphia Communications Corporation until 5:00 p.m., New York City time, on Thursday, April 7, 2016. The exchange offers were previously scheduled to expire at 5:00 p.m., New York City time, on Thursday, March 31, 2016. As of 5:00 p.m., New York City time, on Thursday, March 31, 2016, Eligible Holders of $2,915,671,408 original principal amount of Senior Claims outstanding, Eligible Holders of $176,999,113.13 of ACC 4 Claims outstanding and Eligible Holders of $0 of ACC 5 Claims outstanding had validly tendered their Claims pursuant to the exchange offers. ACC Claims Holdings, LLC recognizes that the Claims will continue to accrue post-effective date interest between the original expiration date and the extended expiration date. Therefore, the consideration offered to Eligible Holders will be increased by a corresponding amount. Except as set forth herein, the terms and conditions of the exchange offers remain unchanged. ACC Claims Holdings, LLC reserves the right to further extend the exchange offers prior to the termination of the extended expiration date. ACC Claims Holdings, LLC does not contemplate any such additional extensions of the exchange offers at this time. The exchange offers are being made pursuant to (i) the offers to exchange, dated March 3, 2016, and supplemented and amended on March 9, 2016, March 21, 2016 and on the date hereof and (ii) the related letter of transmittal, dated as of March 3, 2016 and supplemented and amended on March 21, 2016. The exchange offers will only be made, and the offers to exchange and the related letter of transmittal will only be distributed to, holders who complete, execute and return an eligibility form confirming that they are qualified purchasers ("Qualified Purchasers") as defined in Section 2(a)(51)(A) of the Investment Company Act of 1940, as amended (except to the extent waived by the managing member of ACC Claims Holdings, LLC), excluding Benefit Plan Investors (as defined below) (except as provided for and subject to the terms of the exchange offers, as amended), each of which is (x) a qualified institutional buyer within the meaning of Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"), (y) an institutional investor that qualifies as an "accredited investor" pursuant to Rule 501(a)(1), (2), (3) or (7) under the Securities Act or (z) not a U.S. person in an offshore transaction, in each case as defined in Regulation S under the Securities Act (such persons, "Eligible Holders"). "Benefit Plan Investor" means a benefit plan investor, as defined in Section 3(42) of the Employee Retirement Income Security Act of 1974, as amended ("ERISA"), and includes (a) an employee benefit plan (as defined in Section 3(3) of Title I of ERISA) that is subject to the fiduciary responsibility provisions of Title I of ERISA, (b) a plan that is subject to Section 4975 of the Internal Revenue Code of 1986, as amended (the "Code"), or (c) any entity whose underlying assets include, or are deemed for purposes of ERISA or the Code to include, "plan assets" by reason of any such employee benefit plan's or plan's investment in the entity. Holders who desire to obtain and complete an eligibility form should either visit the website for this purpose at www.dfking.com/adelphia or call D.F. King & Co., Inc., the information agent and exchange agent for the exchange offers, at (800) 761-6523 (toll-free) or (212) 269-5550 (collect for banks and brokers only). The managing member of ACC Claims Holdings, LLC may, in its sole discretion, waive the restriction on tenders by Benefit Plan Investors. However, the managing member is not required to accept a tender in whole or in part from an investor that is a Benefit Plan Investor, and reserves the right to reject in its complete discretion any tender by a Benefit Plan Investor. About Adelphia Communications Based in Coudersport, Pennsylvania, Adelphia Communications Corporation was once the fifth-biggest cable company. Adelphia served customers in 30 states and Puerto Rico, and offered analog and digital video services, Internet access and other advanced services over its broadband networks. Adelphia collapsed in 2002 after disclosing that founder John Rigas and his family owed $2.3 billion in off-balance-sheet debt on bank loans taken jointly with the company. Mr. Rigas was sentenced to 12 years in prison, while son Timothy 15 years. Adelphia Communications and its more than 200 affiliates filed for Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 02-41729) on June 25, 2002. Willkie Farr & Gallagher represented the Debtors in their restructuring effort. PricewaterhouseCoopers served as the Debtors' financial advisor. Kasowitz, Benson, Torres & Friedman LLP and Klee, Tuchin, Bogdanoff & Stern LLP represented the Official Committee of Unsecured Creditors. Adelphia Cablevision Associates of Radnor, L.P., and 20 of its affiliates, collectively known as Rigas-Managed Entities, were entities that were previously held or controlled by members of the Rigas family. In March 2006, the rights and titles to these entities were transferred to certain subsidiaries of Adelphia Cablevision LLC. The RME Debtors filed for Chapter 11 protection (Bankr. S.D.N.Y. Case Nos. 06-10622 through 06-10642) on March 31, 2006. Their cases were jointly administered under Adelphia Communications and its debtor-affiliates' Chapter 11 cases. The Bankruptcy Court confirmed the Debtors' Joint Chapter 11 Plan of Reorganization on Jan. 5, 2007. The Plan became effective on Feb. 13, 2007. The Adelphia Recovery Trust, a Delaware Statutory Trust, was formed pursuant to the Plan. The Trust holds certain litigation claims transferred pursuant to the Plan against various third parties and exists to prosecute the causes of action transferred to it for the benefit of holders of Trust interests. Lawyers at Kasowitz, Benson, Torres & Friedman, LLP (NYC), represent the Adelphia Recovery Trust. ADM VENDING: Case Summary & 20 Largest Unsecured Creditors ---------------------------------------------------------- Debtor: ADM Vending, Inc. fdba ADM Vending & Coffee 20 Continental Blvd Merrimack, NH 03054 Case No.: 16-10477 Chapter 11 Petition Date: April 1, 2016 Court: United States Bankruptcy Court District of New Hampshire (Manchester) Debtor's Counsel: William S. Gannon, Esq. WILLIAM S. GANNON PLLC 889 Elm Street, 4th Floor Manchester, NH 03101 Tel: (603) 621-0833 Fax: (603) 621-0830 Email: bgannon@gannonlawfirm.com Total Assets: $1.82 million Total Liabilities: $599,764 The petition was signed by Daniel Mendenhall, president. A list of the Debtor's 20 largest unsecured creditors is available for free at http://bankrupt.com/misc/nhb16-10477.pdf ALABAMA-MISSISSIPPI FARM: Voluntary Chapter 11 Case Summary ----------------------------------------------------------- Debtor: Alabama-Mississippi Farm Inc. P.O. Box 149 Eutaw, AL 35462 Case No.: 16-01156 Chapter 11 Petition Date: March 31, 2016 Court: United States Bankruptcy Court Southern District of Mississippi (Jackson-3 Divisional Office) Debtor's Counsel: Craig M. Geno, Esq. LAW OFFICES OF CRAIG M. GENO, PLLC 587 Highland Colony Pkwy. Ridgeland, MS 39157 Tel: 601 427-0048 Fax: 601-427-0050 E-mail: cmgeno@cmgenolaw.com Estimated Assets: $100,000 to $500,000 Estimated Liabilities: $1 million to $10 million The petition was signed by Barry Walker, president. The Debtor did not include a list of its largest unsecured creditors when it filed the petition. ALPHA NATURAL: Wants Mark Manno Designated as Responsible Person ---------------------------------------------------------------- Alpha Natural Resources, Inc., et al., ask the U.S. Bankruptcy Court for the Eastern District of Virginia to (i) enter an amended order of designation; and (ii) designate Mark M. Manno, executive vice president, general counsel and chief procurement officer of ANR, as the individual responsible for "performing the duties imposed upon the Debtors by the Bankruptcy Code. The Debtors also request that the designation remain in effect during the pendency of the cases unless altered by order of the Court. The Debtors have discussed this change of designation with the Office of the United States Trustee for the Eastern District of Virginia, and the U.S. Trustee has indicated that it has no objection to the proposed change. On Aug. 6, 2015, the Court designated Richard H. Verheij, the then-vice president and secretary of ANR as the individual responsible for "performing the duties imposed upon the Debtors by the Bankruptcy Code." The order of designation provides that it will remain in effect during the pendency of the Debtors' chapter 11 cases until "altered by order of the Court." On Dec. 21, 2015, Mr. Verheij resigned from (a) each of his positions at ANR; and (b) each of his positions at ANR's subsidiaries. On December 31, 2015, Mr. Verheij resigned his position as ANR's executive vice president, at which point he was no longer employed by the Debtors in any capacity. Accordingly, Mr. Verheij can no longer serve as the Debtor Designee in the chapter 11 cases. About Alpha Natural Resources Headquartered in Bristol, Virginia, Alpha Natural -- http://www.alphanr.com/-- is a coal supplier, ranked second largest among publicly traded U.S. coal producers as measured by 2014 consolidated revenues of $4.3 billion. As of August 2015, Alpha had 8,000 full time employees across many different states, with UMWA representing 1,000 of the employees. Alpha Natural Resources, Inc. (Bankr. E.D. Va. Case No. 15-33896) and its affiliates filed separate Chapter 11 bankruptcy petitions on Aug. 3, 2015, listing $9.9 billion in total assets as of June 30, 2015, and $7.3 billion in total liabilities as of June 30, 2015. The petitions were signed by Richard H. Verheij, executive vice president, general counsel and corporate secretary. Judge Kevin R. Huennekens presides over the cases. David G. Heiman, Esq., Carl E. Black, Esq., and Thomas A. Wilson, Esq., at Jones Day serve as the Debtors' general counsel. Tyler P. Brown, Esq., J.R. Smith, Esq., Henry P. (Toby) Long, III, Esq., and Justin F. Paget, Esq., serve as the Debtors' local counsel. Rothschild Group is the Debtors' financial advisor. Alvarez & Marshal Holdings, LLC, is the Debtors' investment banker. Kurtzman Carson Consultants, LLC, is the Debtors' claims and noticing agent. The U.S. Trustee for Region 4 appointed seven creditors of Alpha Natural Resources Inc. to serve on the official committee of unsecured creditors. Dennis F. Dunne, Esq., Evan R. Fleck, Esq., and Eric K. Stodola, Esq., at Milbank, Tweed, Hadley & McCloy LLP; and William A. Gray, Esq., W. Ashley Burgess, Esq., and Roy M. Terry, Jr., Esq. at Sands Anderson PC, represent the Committee. * * * Alpha Natural Resources, Inc. on March 8 disclosed that it has filed a proposed Chapter 11 Plan of Reorganization and a related Disclosure Statement with the United States Bankruptcy Court for the Eastern District of Virginia. Together with the recently-filed motion seeking approval of a marketing process for Alpha's core operating assets, these filings provide for the sale of Alpha's assets, detail a path toward the resolution of all creditor claims, and anticipate the emergence of a streamlined and sustainable reorganized company able to satisfy its environmental obligations on an ongoing basis. By selling certain assets as a going concern and restructuring the company's remaining assets into a reorganized Alpha, the company is able to provide maximum recovery to its creditors, while preserving jobs and putting itself in the best position to meet its reclamation obligations. This path will allow for a conclusion of Alpha's bankruptcy proceedings by June 30, 2016. AMERICAN HOSPICE: Hires Dentons US as Counsel --------------------------------------------- American Hospice Management Holdings, LLC, et al., seek authority from the U.S. Bankruptcy Court for the District of Delaware to employ Dentons US LLC as counsel to the Debtors, nunc pro tunc to March 20, 2016. American Hospice requires Dentons US to: (a) advise the Debtors with respect to its powers and duties as debtors and debtors-in-possession in the continued management and operation of their businesses and property; (b) attend meetings and negotiate with representatives of creditors and other parties in interest and advise and consult on the conduct of the Chapter 11 cases, including all of the legal and administrative requirements of operating in chapter 11; (c) take necessary action to protect and preserve the Debtors' estates, including the prosecution of actions on Debtors' behalf, the defense of any actions commenced against the estates, negotiations concerning all litigation in which the Debtors may be involved and objections to claims filed against the estates; (d) review and prepare on behalf of the Debtor all documents and agreements as they become necessary and desirable; (e) review and prepare on behalf of the Debtors all motions, administrative and procedural applications, answers, orders, reports and papers necessary to the administration of the estates; (f) advise the Debtors in connection with any sale of assets; (g) negotiate and prepare on the Debtors' behalf any chapter 11 plan, disclosure statement and all related agreements and/or documents and take any necessary action on behalf of the Debtors to obtain confirmation of such plan; (h) review and object to claims; (i) analyze, recommend, prepare, and bring any causes of action created under the Bankruptcy Code; (j) appear before the Bankruptcy Court, any appellate courts, and the U.S. Trustee, and protect the interests of the Debtors' estates before such courts and the U.S. Trustee; and (k) perform all other necessary legal services and give all other necessary legal advice to the Debtors in connection with the Chapter 11 cases. The hourly rates of Dentons US professionals are: a. Partners and senior counsel $400-$1,240 b. Counsel $315-$875 c. Associates $220-$595 d. Paraprofessionals $195-$350 The principal attorneys and paralegal presently designated to represent the Debtors and their hourly rates are: Professional Position Hourly Rate ------------ -------- ----------- Samuel R. Maizel Partner $840 Gary W. Marsh Partner $730 David Gordon Partner $615 James A. Copeland Associate $585 Matthew Weiss Associate $490 Dan Pina Paralegal $380 Dentons US will also be reimbursed for reasonable out-of-pocket expenses incurred. Samuel R. Maizel, partner of Dentons US LLP, 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. Dentons can be reached at: Samuel R. Maizel, Esq. DENTONS US LLP 601 S. Figueroa Street, Suite 2500 Los Angeles, CA 90017 Tel: (213) 623-9300 Fax: (213) 623-9924 E-mail: samuel.maizel@dentos.com About American Hospice Headquartered in Jacksonville, Florida, American Hospice Management Holdings, LLC is a hospice care provider for patients with conditions including, among other things, cancer, cardiopulmonary diseases, Alzheimer's and strokes. American Hospice currently provides hospice care in the following six markets: (i) Phoenix, Arizona; (ii) Houston, Texas; (iii) Oklahoma City, Oklahoma; (iv) Atlanta, Georgia; (v) Richmond and Central Virginia; and (vi) New Jersey. The Company employs 365 people. American Hospice and 10 of its affiliates filed separate Chapter 11 bankruptcy petitions (Bankr. D. Del. Proposed Lead Case No. 16-10670) on March 20, 2016. Scott Mahosky signed the petition as chief executive officer. The Debtors estimated assets in the range of $10 million to $50 million and liabilities of up to $50 million. The Debtors have hired Denton US LLP as counsel, Pachulski Stang Ziehl & Jones LLP as co-counsel, Harris Williams & Co. as investment banker, and Kurtzman Carson Consultants, LLC as notice and claims agent. Each of the Debtors is owned 100% by American Hospice Management Holdings, LLC which is a Delaware limited liability company. The majority owner of American Hospice Management Holdings, LLC is American Hospice Holdings Corporation, a Delaware corporation. American Hospice Holdings Corporation is wholly owned by 2000 Riverside Capital Appreciation Fund, L.P. AMERICAN HOSPICE: Hires Kurtzman Carson as Admin Advisor -------------------------------------------------------- American Hospice Management Holdings, LLC, et al., seek authority from the U.S. Bankruptcy Court for the District of Delaware to employ Kurtzman Carson Consultants LLC as administrative advisor to the Debtors, nunc pro tunc to March 20, 2016. American Hospice requires Kurtzman Carson to: a. assist with, among other things, solicitation, balloting, and tabulation and calculation of votes, as well as preparing any appropriate reports, as required in furtherance of confirmation of chapter 11 plan; b. generate an official ballot certification and testifying, if necessary, in support of the ballot tabulation results; c. gather data in conjunction with the preparation, and assist with the preparation, of the Debtors' schedules of assets and liabilities and statements of financial affairs; d. provide a confidential data room; e. manage any distributions pursuant to a confirmed chapter 11 plan; and f. provide such other claims processing, noticing, solicitation, balloting, and administrative services described in the Services Agreement, but not included in the Section 156(c) Application, as may be requested from time to time by the Debtors. Prior to the petition date, the Debtors provided Kurtzman Carson a retainer in the amount of $20,000. Kurtzman Carson seeks to hold such retainer under the Services Agreement during the cases as security for the payment of fees and expenses incurred under the Services Agreement. The Debtors have agreed to certain indemnification and contribution obligations as part of the overall compensation payable to Kurtzman Carson. Evan Gershbein, senior vice president of corporate restructuring services at Kurtzman Carson Consultants LLC, 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. Kurtzman Carson can be reached at: Evan Gershbein KURTZMAN CARSON CONSULTANTS LLC 2335 Alaska Ave. El Segundo, CA 90245 Tel: (310) 823-9000 Fax: (310) 823-9133 About American Hospice Headquartered in Jacksonville, Florida, American Hospice Management Holdings, LLC is a hospice care provider for patients with conditions including, among other things, cancer, cardiopulmonary diseases, Alzheimer's and strokes. American Hospice currently provides hospice care in the following six markets: (i) Phoenix, Arizona; (ii) Houston, Texas; (iii) Oklahoma City, Oklahoma; (iv) Atlanta, Georgia; (v) Richmond and Central Virginia; and (vi) New Jersey. The Company employs 365 people. American Hospice and 10 of its affiliates filed separate Chapter 11 bankruptcy petitions (Bankr. D. Del. Proposed Lead Case No. 16-10670) on March 20, 2016. Scott Mahosky signed the petition as chief executive officer. The Debtors estimated assets in the range of $10 million to $50 million and liabilities of up to $50 million. The Debtors have hired Denton US LLP as counsel, Pachulski Stang Ziehl & Jones LLP as co-counsel, Harris Williams & Co. as investment banker, and Kurtzman Carson Consultants, LLC as notice and claims agent. Each of the Debtors is owned 100% by American Hospice Management Holdings, LLC which is a Delaware limited liability company. The majority owner of American Hospice Management Holdings, LLC is American Hospice Holdings Corporation, a Delaware corporation. American Hospice Holdings Corporation is wholly owned by 2000 Riverside Capital Appreciation Fund, L.P. AMERICAN HOSPICE: Hires Pachulski Stang as Co-Counsel ----------------------------------------------------- American Hospice Management Holdings, LLC, et al., seek authority from the U.S. Bankruptcy Court for the District of Delaware to employ Pachulski Stang Ziehl & Jones LLP as co-counsel to the Debtors, nunc pro tunc to March 20, 2016. American Hospice requires Pachulski Stang to: a. provide legal advice regarding local rules, practices, and procedures; b. review and comment on drafts of documents to ensure compliance with local rules, practices, and procedures; c. file documents as requested by co-counsel and coordinating with the Debtors' claims agent for service of documents; d. prepare agenda letters, certificates of no objection, certifications of counsel, and notices of fee applications and hearing; e. prepare hearing binders of documents and pleadings, printing of documents and pleadings for hearings; f. appear in Court and at any meeting of creditors on behalf of the Debtors in its capacity as co-counsel; g. monitor the docket for filings and coordinating with co- counsel on pending matters that need responses; h. prepare and maintain critical dates memorandum to monitor pending applications, motions, hearing dates and other matters and the deadlines associated with same; distribute critical dates memorandum with co-counsel for review and any necessary coordination for pending matters; i. handle inquiries and calls from creditors and counsel to interested parties regarding pending matters and the general status of the Bankruptcy Cases, and, to the extend required, coordinating with co-counsel on any necessary responses; and j. provide additional administrative support to co-counsel, as requested. The principal attorneys and paraprofessionals presently designated to represent the Debtors and their current standard hourly rates are: a. Laura Davis Jones $1,050 b. Colin R. Robinson $695 c. Monica A. Molitor $325 Pachulski Stang will also be reimbursed for reasonable out-of-pocket expenses incurred. Laura Davis Jones, partner of Pachulski Stang Ziehl & Jones LLP, 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. Pachulski Stang can be reached at: Laura Davis Jones, Esq. PACHULSKI STANG ZIEHL & JONES LLP 919 North Market Street, 17th Floor PO Box 8705 Wilmington, DE 19899 Tel: (302) 652-4100 Fax: (302) 652-4400 E-mail: ljones@pszjlaw.com About American Hospice Headquartered in Jacksonville, Florida, American Hospice Management Holdings, LLC is a hospice care provider for patients with conditions including, among other things, cancer, cardiopulmonary diseases, Alzheimer's and strokes. American Hospice currently provides hospice care in the following six markets: (i) Phoenix, Arizona; (ii) Houston, Texas; (iii) Oklahoma City, Oklahoma; (iv) Atlanta, Georgia; (v) Richmond and Central Virginia; and (vi) New Jersey. The Company employs 365 people. American Hospice and 10 of its affiliates filed separate Chapter 11 bankruptcy petitions (Bankr. D. Del. Proposed Lead Case No. 16-10670) on March 20, 2016. Scott Mahosky signed the petition as chief executive officer. The Debtors estimated assets in the range of $10 million to $50 million and liabilities of up to $50 million. The Debtors have hired Denton US LLP as counsel, Pachulski Stang Ziehl & Jones LLP as co-counsel, Harris Williams & Co. as investment banker, and Kurtzman Carson Consultants, LLC as notice and claims agent. Each of the Debtors is owned 100% by American Hospice Management Holdings, LLC which is a Delaware limited liability company. The majority owner of American Hospice Management Holdings, LLC is American Hospice Holdings Corporation, a Delaware corporation. American Hospice Holdings Corporation is wholly owned by 2000 Riverside Capital Appreciation Fund, L.P. AMPLIPHI BIOSCIENCES: Incurs $10.8 Million Net Loss in 2015 ----------------------------------------------------------- Ampliphi Biosciences Corporation filed with the Securities and Exchange Commission its annual report on Form 10-K disclosing a net loss attributable to common stockholders of $10.79 million on $475,000 of revenue for the year ended Dec. 31, 2015, compared to net income attributable to common stockholders of $21.8 million on $409,000 of revenue for the year ended Dec. 31, 2014. As of Dec. 31, 2015, AmpliPhi had $31.5 million in total assets, $6.88 million in total liabilities, $11.89 million in series B convertible preferred stock, and $12.7 million in total stockholders' equity. Ernst & Young LLP, in Richmond, Virginia, issued a "going concern" qualification on the Company's consolidated financial statements for the year ended Dec. 31, 2015, citing that the Company has recurring losses from operations and has a net capital deficiency that raise substantial doubt about its ability to continue as a going concern. As of Dec. 31, 2015, the Company had cash and cash equivalents of $9.4 million. Management believes that our existing resources will be sufficient to fund our planned operations through the third quarter of 2016. A full-text copy of the Form 10-K is available for free at: http://is.gd/Hz22jq About AmpliPhi AmpliPhi Biosciences Corp. is a biopharmaceutical company that develops bacteriophage-based therapeutics. It also develops an internally generated pipeline of naturally occurring viruses called bacteriophage (Phage) for the treatment of bacterial infection, such as drug-resistant strains of bacteria that are commonly found in the hospital setting. The company's Phage discovery also focuses on acute & chronic lung, sinus and gastrointestinal infections. AmpliPhi Biosciences was founded in March 1989 and is headquartered in Glen Allen, Virginia. ANACOR PHARMACEUTICALS: Proposes to Offer $250M Senior Notes ------------------------------------------------------------ Anacor Pharmaceuticals, Inc., announced that it intends to offer, subject to market and other considerations, $250,000,000 aggregate principal amount of Convertible Senior Notes due 2023 in a private placement under the Securities Act of 1933, as amended. Anacor also intends to grant to the initial purchasers of the Convertible Notes a 30-day option to purchase up to an additional $37,500,000 aggregate principal amount of the Convertible Notes, solely to cover over-allotments, if any. In connection with the pricing of the Convertible Notes, Anacor expects to enter into capped call transactions with one or more financial institutions (the "option counterparties"). The capped call transactions are expected to reduce the potential dilution to Anacor's common stock and/or offset any cash payments that Anacor will be required to make in excess of the principal amount upon any conversion of the Convertible Notes, with such reduction and/or offset subject to a cap. In connection with establishing their initial hedges of the capped call transactions, Anacor expects that the option counterparties (and/or their respective affiliates) will enter into various derivative transactions with respect to Anacor's common stock concurrently with or shortly after the pricing of the Convertible Notes and that the option counterparties (and/or their respective affiliates) may unwind these various derivative transactions and purchase shares of Anacor's common stock in open market transactions shortly following the pricing of the Convertible Notes. These activities could have the effect of increasing, or reducing the size of a decline in, the market price of Anacor's common stock or the Convertible Notes concurrently with, or shortly following, the pricing of the Convertible Notes. In addition, the option counterparties (and/or their respective affiliates) may modify their hedge positions by entering into or unwinding various derivatives with respect to Anacor's common stock and/or purchasing or selling Anacor's common stock or other securities of Anacor in secondary market transactions following the pricing of the Convertible Notes and prior to the maturity of the Convertible Notes (and are likely to do so during any observation period related to a conversion of Convertible Notes or following any repurchase of Convertible Notes by Anacor on any fundamental change purchase date or otherwise). Any of these activities could cause or avoid an increase or a decrease in the market price of Anacor's common stock or the Convertible Notes, which could affect a holder's ability to convert the Convertible Notes and, to the extent the activity occurs during any observation period related to a conversion of Convertible Notes, it could affect the number of shares and/or value of the consideration that holders will receive upon conversion of the Convertible Notes. In addition, if the capped call transactions fail to become effective, whether or not the offering of Convertible Notes is completed, the option counterparties (and/or their respective affiliates) may unwind their hedge positions with respect to Anacor's common stock, which could adversely affect the value of Anacor's common stock and, if the Convertible Notes have been issued, the value of the Convertible Notes. Anacor intends to use a portion of the net proceeds of the offering to fund the cost of the capped call transactions described above and the remaining net proceeds for general corporate purposes. If the over-allotment option granted to the initial purchasers is exercised, Anacor may use a portion of the net proceeds from the sale of additional Convertible Notes to enter into additional capped call transactions and intends to use the remaining net proceeds from the sale of additional Convertible Notes for general corporate purposes. The Convertible Notes will be general unsecured obligations of Anacor and interest will be paid semiannually. Subject to satisfaction of certain conditions and during certain periods, the Convertible Notes will be convertible at the option of holders into cash, shares of Anacor common stock or a combination thereof (with the form of consideration at Anacor's election). The Convertible Notes will not be redeemable at Anacor's option prior to their maturity date. The interest rate, conversion rate and other terms of the Convertible Notes will be determined at the time of the pricing of the offering. About Anacor Pharmaceuticals Palo Alto, Calif.-based Anacor Pharmaceuticals (NASDAQ: ANAC) is a biopharmaceutical company focused on discovering, developing and commercializing novel small-molecule therapeutics derived from its boron chemistry platform. Anacor has discovered eight compounds that are currently in development. Its two lead product candidates are topically administered dermatologic compounds - tavaborole, an antifungal for the treatment of onychomycosis, and AN2728, an anti-inflammatory PDE-4 inhibitor for the treatment of atopic dermatitis and psoriasis. Anacor reported a net loss of $61.2 million on $82.4 million of total revenues for the year ended Dec. 31, 2015, compared to a net loss of $87.1 million on $20.7 million of total revenues for the year ended Dec. 31, 2014. As of Dec. 31, 2015, Anacor had $176 million in total assets, $124 million in total liabilities, $49,000 in redeemable common stock, and $52.3 million in total stockholders' equity. ANTERO ENERGY: Court Approves Frank Broyles as Counsel ------------------------------------------------------ Antero Energy Partners, LLC, sought and obtained permission from the U.S. Bankruptcy Court for the Northern District of Texas to employ Frank L. Broyles, Esq. as lead counsel. Antero Energy requires Broyles to: -- review various documents from the books and records of Debtor and its creditors and other books and records in the possession of others related to this case; -- draft and file typical motions including an application to employ Broyles as counsel; -- draft and file appropriate motions with respect to compensation of professional persons, including Broyles; -- provide legal advice to the Debtor with respect to its duties and powers; -- assist the Debtor in its investigation of its assets, liabilities, and financial condition of the Debtor, the Debtor's business, and any other matter relevant to the Bankruptcy Case or to the formulation of a plan or plans of reorganization; -- file original and/or amended schedules and statements of financial affairs; -- assist the Debtor in the formulation of a plan or plans of reorganization, including, if necessary, attending and assisting in negotiation sessions, discussions and meeting with its creditors; -- assist the Debtor in the possible sale of its assets pursuant to Section 363 of the bankruptcy code; -- assist the Debtor in requesting the appointment of other professional persons, should such action be necessary; -- represent the Debtor at all necessary hearings, including but not limited to motions, trials, rejection and acceptance of executor contract hearings, disclosure statement and plan confirmation hearing; and -- prosecute adversary proceedings arising out of Legacy Bank's alleged assignment of Debtor's obligations. The Debtor's Chapter 11 Petition was filed by Attorney Keith Harvey. Mr. Harvey has agreed to file a motion to withdraw or consent to substitution of Frank L. Broyles as counsel for the Debtor. Mr. Harvey does not object to the Broyles Application. Broyles will be paid at his established hourly rates and seek payment of expenses in accordance with local bankruptcy rules for the Northern District of Texas. Broyles' hourly billing rates are set forth in his declaration. Payment for costs and expenses requested by Broyles will be made in accordance with the retention agreement and the rules of set by the court. Broyles represents that neither he nor Frank L. Broyles, P.C. has any interest adverse to the Debtor or the estate in matters in which they are to be engaged for the Debtor. Broyles can be reached at: Frank L. Broyles, Esq. 222 W. Las Colinas Blvd. 1650 East Tower Irving, TX 75039 Telephone: (972)401-4141 E-mail: frank.broyles@utexas.edu About Antero Energy Antero Energy Partners, LLC, filed a Chapter 11 petition (Bankr. N.D. Tex. Case No. 16-30308) in Dallas on Jan. 25, 2016. Judge Stacey G. Jernigan is assigned to the case. The Debtor tapped Keith William Harvey, Esq., at The Harvey Law Firm, P.C., as counsel. The Debtor estimated $10 million to $50 million in assets and debt. ARCH COAL: Lenders Want Exit Plan Filed by April 26 --------------------------------------------------- Prior to filing for Chapter 11 bankruptcy, Arch Coal, Inc. and certain of its debtor-affiliates entered into a Restructuring Support Agreement, dated as of January 10, 2016 (as amended on February 25, 2016). On March 28, 2016, Arch entered into an amendment, which provides for the waiver of the termination event that would have occurred on April 10, 2016 as a result of the Debtors not having obtained Court approval of the assumption of the Restructuring Support Agreement within 90 days of the Petition Date. Following entry into the RSA Amendment, the Debtors are required to obtain Court approval of the assumption of the Restructuring Support Agreement prior to May 13, 2016 or such later date as may be agreed to by the Majority Consenting Lenders under the Restructuring Support Agreement. The RSA Amendment also provides for the waiver of any termination event arising out of the Debtors' failure to deliver the updated business plan required under the Restructuring Support Agreement no later than 60 days after the Petition Date, so long as the Debtors: (i) deliver an updated business plan no later than April 1, 2016 or such later date as may be agreed to by the Majority Consenting Lenders, which business plan is reasonably acceptable to the Majority Consenting Lenders (confirmed on or before April 8, 2016 or such later date as may be agreed to by the Majority Consenting Lenders), and (ii) make publicly available certain disclosure materials no later than April 15, 2016 or such later date as may be agreed to by the Majority Consenting Lenders). The RSA Amendment further waives any termination event arising out of the Debtors' failure to file the Plan and Disclosure Statement no later than 90 days after the Petition Date, so long as the Debtors: (i) file the Plan and Disclosure Statement no later than April 26, 2016 or such later date as may be agreed to by the Majority Consenting Lenders, and (ii) obtain Court approval of the Disclosure Statement no later than June 10, 2016. The RSA Amendment also provides for an extension of the date after which the Debtors and the Majority Consenting Lenders may modify the proposed distributions to holders of unsecured claims if holders of more than $1.6125 billion of unsecured claims against the Debtors have not executed a restructuring support agreement substantially in the form of the Restructuring Support Agreement from April 10, 2016 to April 22, 2016. On January 21, 2016, the Superpriority Secured Debtor-in-Possession Credit Agreement (as amended on March 4, 2016) was entered into by and among the Company, as borrower, certain of the Debtors, as guarantors, the lenders from time to time party thereto and Wilmington Trust, National Association, as administrative agent and collateral agent for the DIP Lenders. Arch entered into an amendment to the DIP Credit Agreement, dated as of March 28, 2016, which extends: (i) the deadline for the filing of a plan of reorganization and accompanying disclosure statement from 90 days after the Petition Date to April 26, 2016, or the later date as agreed by the DIP Lenders holding a majority of the term loans and unused commitments under the DIP Facility or the DIP Agent with the consent of the Required DIP Lenders, and (ii) the deadline for obtaining an order of the Court approving a disclosure statement for the solicitation of such plan of reorganization described in clause (i) above from 60 days after the filing described in clause (i) above to June 10, 2016, or such later date as agreed by the Required DIP Lenders or the DIP Agent with the consent of the Required DIP Lenders. About Arch Coal Founded in 1969, Arch Coal, Inc., is a producer and marketer of coal in the United States, with operations and coal reserves in each of the major coal-producing regions of the Country. As of January 2016, it was the second-largest holder of coal reserves in the United States, owning or controlling over five billion tons of proven and probable reserves. As of the Petition Date, Arch employed approximately 4,600 full and part-time employees. Arch Coal, Inc. and 71 of its affiliates filed Chapter 11 bankruptcy petitions (Bankr. E.D. Mo. Case Nos. 16-40120 to 16-40191) on Jan. 11, 2016. The petition was signed by Robert G. Jones as senior vice president-law, general counsel and secretary. The Debtors disclosed total assets of $5.84 billion and total debt of $6.45 billion. Judge Charles E. Rendlen III has been assigned the case. The Debtors have engaged Davis Polk & Wardwell LLP as counsel, Bryan Cave LLP as local counsel, FTI Consulting, Inc. as restructuring advisor, PJT Partners as investment banker, and Prime Clerk LLC as notice, claims and solicitation agent. An Official Committee of Unsecured Creditors has been appointed in the case. The Committee has retained Kramer Levin Naftalis & Frankel LLP as counsel; Spencer Fane LLP as local counsel; Berkeley Research Group, LLC as financial advisor; Jefferies LLC as investment banker; and Blackacre LLC as coal consultant. ASHLAND INC: S&P Raises Rating on Subordinated Notes to 'BB' ------------------------------------------------------------ Standard & Poor's Ratings Services raised its issue-level rating on subordinated notes issued by Hercules Incorporated (a subsidiary of Ashland Inc.) to 'BB' from 'B+', which is the same as S&P's corporate credit rating on Ashland Inc. At the same time, S&P revised its recovery rating on the Hercules subordinated notes to '3' from '6'. The '3' recovery rating indicates S&P's expectation of meaningful (50%-70%; upper half of the range) recovery in the event of a payment default. All S&P's other ratings on Ashland are unchanged. The rating changes result from S&P's ongoing surveillance on Ashland and reflect an improved understanding of Ashland's debt, capital, and organizational structure. Under S&P's revised analysis, the Hercules debentures represent structurally senior claims (relative to Ashland's credit facilities and senior notes) against the portion of the recovery value S&P attributes to Hercules, which improves their recovery prospects. Although the debentures are contractually subordinated, the contractual subordination applies only to Hercules' debt obligations. According to the company, Hercules only has a negligible amount of other debt outstanding, and does not guarantee Ashland's credit facilities or senior notes. In addition, S&P understands that Ashland does not guarantee the Hercules debentures and that the Hercules debentures have recourse only to Hercules Inc. RATINGS LIST Ashland Inc. Hercules Inc. Corporate Credit Rating BB/Negative/-- Issue-Level Rating Raised; Recovery Rating Revised To From Hercules Inc. Subordinated Debt Rating BB B+ Recovery Rating 3H 6 Issue-Level And Recovery Ratings Unchanged Ashland Inc. Senior Unsecured Debt Rating BB Recovery Rating 4L ASPECT SOFTWARE: 341 Meeting of Creditors Set for April 14 ---------------------------------------------------------- The meeting of creditors of Aspect Software Parent Inc. and its affiliates is set to be held on April 14, 2016, at 10:00 a.m., according to a filing with the U.S. Bankruptcy Court in Delaware. The meeting will be held at J. Caleb Boggs Federal Building, Room 2112, 844 King Street, Wilmington, Delaware. The court overseeing the bankruptcy case of a company schedules the meeting of creditors usually about 30 days after the bankruptcy petition is filed. The meeting is called the "341 meeting" after the section of the Bankruptcy Code that requires it. A representative of the company is required to appear at the meeting and answer questions under oath. The meeting is presided over by the U.S. trustee, the Justice Department's bankruptcy watchdog. About Aspect Software Headquartered in Phoenix, Arizona, with 38 offices located in 19 countries, Aspect Software serves as a global provider of software systems and equipment for contact centers that service the needs of customers across various industries. Aspect delivers solutions to more than 2,200 Contact Centers in more than 70 countries, and its products currently support approximately 1.5 million contact center agent seats, managing over 100 million enterprise customer interactions daily. Aspect Software Parent, Inc., Aspect Software, Inc., VoiceObjects Holdings Inc., Voxeo Plaza Ten, LLC and Davox International Holdings, LLC filed Chapter 11 bankruptcy petitions (Bankr. D. Del. Proposed Lead Case No. 16-10597) on March 9, 2016. Robert Krakauer signed the petitions as executive vice president and chief financial officer. The Debtors have hired Kirkland & Ellis LLP as general bankruptcy counsel, Klehr Harrison Harvey Branzburg LLP as co-bankruptcy counsel, Alix Partners, LLP as financial advisor, Jefferies LLC as investment banker and Prime Clerk LLC as claims, notice, and balloting agent. The Troubled Company Reporter on March 21, 2016, reported that the Office of the U.S. Trustee disclosed in a court filing that no official committee of unsecured creditors has been appointed in the Chapter 11 case of Aspect Software Parent, Inc. ASPECT SOFTWARE: Moody's Lowers CFR to Caa3, Outlook Stable ----------------------------------------------------------- Moody's Investors Service, in mid-March 2016, downgraded Aspect Software's Corporate Family Rating to Caa3 and its Probability of Default Rating to D-PD. The downgrade was prompted by Aspect's March 9, 2016 announcement that it had initiated Chapter 11 bankruptcy proceedings. The outlook was changed to stable from negative. RATINGS RATIONALE The Caa3 corporate family rating and instrument ratings reflect the bankruptcy filing and the expected recovery rates on the 1st and 2nd lien debt. Subsequent to today's actions, Moody's will withdraw the ratings due to Aspect's bankruptcy filing. These ratings were affected and will be withdrawn: Downgrades: Issuer: Aspect Software, Inc. Probability of Default Rating, Downgraded to D-PD from Caa2-PD Corporate Family Rating, Downgraded to Caa3 from Caa2 1st Lien Senior Secured Bank Credit Facility, Downgraded to Caa1 (LGD 2) from B3 (LGD 2) 2nd Lien Notes due 2017, Downgraded to C (LGD 5) from Caa3 (LGD 5) Outlook Actions: Issuer: Aspect Software, Inc. Outlook, Changed to Stable from Negative The principal methodology used in these ratings was Software Industry published in December 2015. Aspect is a provider of contact center software solutions and services. The company, headquartered in Phoenix, AZ had revenue of $410 million for the fiscal year ended Dec. 31, 2015. ASSIST-MED INC: Voluntary Chapter 11 Case Summary ------------------------------------------------- Debtor: Assist-Med, Inc. 2000 S. Dairy Ashford Road, Suite 450 Houston, TX 77077 Case No.: 16-31624 Chapter 11 Petition Date: April 3, 2016 Court: United States Bankruptcy Court Southern District of Texas (Houston) Judge: Hon. Karen K. Brown Debtor's Counsel: Margaret Maxwell McClure, Esq. LAW OFFICE OF MARGARET M. MCCLURE 909 Fannin, Suite 3810 Houston, TX 77010 Tel: 713-659-1333 Fax: 713-658-0334 E-mail: margaret@mmmcclurelaw.com Total Assets: $23,284 Total Liabilities: $1.11 million The petition was signed by Ruth Briggs, president and sole shareholder. The Debtor did not include a list of its largest unsecured creditors when it filed the petition. ATK OILFIELD: Chapter 15 Case Summary ------------------------------------- Chapter 15 Petitioner: Ernst & Young Inc. 1000, 400-2nd Avenue SW Calgary, AB T2P 5E9 Canada Chapter 15 Debtors: ATK Oilfield Transportation Inc. 16-70042 800, 520 5th Avenue SW Calgary, Alberta T2P 3R7 ATK Oilfield Transporation (USA) Inc. 16-70043 Type of Business: Oilfield transportation business Chapter 15 Petition Date: April 1, 2016 Court: United States Bankruptcy Court Western District of Texas (Midland) Judge: Hon. Ronald B. King Chapter 15 Petitioner's Counsel: Steve A. Peirce, Esq. NORTON ROSE FULBRIGHT US LLP 300 Convent, Suite 2100 San Antonio, TX 78205-0001 Tel: 210-270-7179 Fax: 210-270-7205 E-mail: steve.peirce@nortonrosefulbright.com - and - Jason L. Boland, Esq. Andrew Black, Esq. NORTON ROSE FULBRIGHT US LLP 1301 McKinney, Suite 5100 Houston, TX 77010-3095 Tel: (713) 651-5151 Fax: (713) 651-5246 E-mail: jason.boland@nortonrosefulbright.com andrew.black@nortonrosefulbright.com Estimated Assets: Not Indicated Estimated Debts: Not Indicated ATK OILFIELD: Seeks U.S. Recognition of Canadian Proceedings ------------------------------------------------------------ Ernst & Young, Inc., the court-appointed receiver and authorized foreign representative of ATK Oilfield Transportation Inc. and ATK Oilfield Transporation (USA) Inc., filed Chapter 15 petitions in the U.S. Bankruptcy Court for the Western District of Texas (Bankr. W.D. Tex. Case Nos. 16-70042 and 16-70043, respectively) on April 1, 2016, seeking recognition in the United States of proceedings currently pending in Canada. On April 1, 2016, the Court of Queen's Bench of Alberta in the Judicial Centre of Calgary, Canada, entered a receivership order against the Debtors under the Bankruptcy and Insolvency Act pursuant to a request by Alberta Treasury Branches, the Debtors' secured creditor holding a claim of C$29,983,250 as of March 10, 2016. The BIA is one of two pieces of federal legislations in Canada applicable to bankruptcies and insolvencies. The Receivership Order provides for a stay against seizure of assets and litigation akin to the automatic stay embodied in Section 362(a) of the Bankruptcy Code. Court documents show that the working capital financing for the Debtors is provided by ATB located in Edmonton, Alberta, Canada pursuant to an Amended and Restated Commitment Letter, dated Oct. 28, 2015. The Loan Facility is comprised of demand facilities as follows: (i) an operating loan facility up to a maximum of C$8,000,000; and (ii) a non-revolving term facility in the amount of C$28,732,663. Headquartered in Calgary, Alberta with operations throughout Western Canada and the Permian Basin in the United States, the Debtors' business consists of moving drilling rigs. The Debtors' assets, located in Canada and the United States, consist of various equipment, rolling stock (trucks and trailers), contracts and contract receivables, leased real property in Canada and Texas, as well as owned real property located in Edson, Alberta and Floresville, Texas. Steve A. Peirce, Esq., at Norton Rose Fulbright US LLP, attorney to Ernst & Young, said in papers filed with the Court that although the Debtors earned a reputation as one of the best rig moving companies in the business, the continued downturn in the petroleum industry and the resulting precipitous reduction in exploration and drilling activities in both Canada and the United States, resulted in a substantial decline in Debtors' rig moving service contracts. Moreover, he added, as the Debtors' customers are exposed to the same financial stress from the depressed petroleum industry, the Debtors' have hundreds of thousands of dollars of likely uncollectable accounts receivable. According to Mr. Peirce, the Debtors experienced a significant decrease in revenue over the last year and forecasted negative cash flow for 2016 of over C$9 million and negative EBITDA of approximately C$6.9 million. As disclosed in Court filings, almost all of the creditors of the Debtors are located in Canada and the United States. The overwhelming majority of the amount of the liabilities of the Debtors, are also to Canadian creditors. Collectively, the Debtors owe trade creditors, located in Canada and the United States over C$2,488,000 and over US$2,776,000, respectively. Contemporaneously with the filing of the Petition for Recognition, the Receiver filed an ex parte application for temporary restraining order staying execution against the Debtors' assets until and through the Court's consideration of the Petition. "[E]mergency provisional relief is necessary to prevent creditors and other parties from continuing litigation or taking action against the Debtors U.S. assets that could prejudice and disrupt the Canadian Proceedings, thereby interfering with the Receiver's ability to conduct an orderly liquidation for the benefit of all creditors and other stakeholders," Mr. Peirce maintained. The Debtors are parties of a litigation that has been commenced and is pending in the United States in the case Kemp W. Jones v. ATK Oilfield Transportation (USA) Inc.; Cause No. CC18206; County Court at Law No. 1, Midland County, Texas. Norton Rose Fulbright US LLP serves as the Receiver's counsel. Judge Ronald B. King is assigned to the cases. BASIC ENERGY: Board OKs Performance-Based Phantom Stock Awards -------------------------------------------------------------- The Board of Directors of Basic Energy Services, Inc., on March 24, 2016, approved grants of performance-based phantom stock awards to each of Basic's executive officers, including Basic's named executive officers. Pursuant to the award agreements, the performance-based awards consist of phantom shares to be earned based upon Basic's total shareholder return relative to the TSR of a peer group of energy services companies measured over the Performance Period (defined as the two-year calculation period starting on the 20th NYSE trading day prior to and including the last NYSE trading day of 2015 and ending on the last NYSE trading day of 2017), with Basic's ranking in TSR performance being compared to the ranking in TSR performance of the members of the PB Peer Group (as defined below). The companies in the PB Peer Group will be ranked from best performing to worst performing with regard to each Company's respective TSR performance, with the PB Peer Group company ranked 1st being the company with the highest TSR when compared to the other PB Peer Group companies and the PB Peer Group company ranked 13th being the company with the lowest TSR when compared to the other PB Peer Group companies, with rankings 2 through 12 being determined in descending order based upon the corresponding descent in TSR performance for companies in the PB Peer Group from 2nd highest to 12th highest. For the 2016 performance year, the TSR Phantom Shares awarded pursuant to the award agreements comprise approximately one half of the total long-term incentive compensation for each of Basic's executive officers, including Basic's named executive officers. The remaining approximate one half of the total long-term incentive compensation has been awarded at the discretion of Basic's Board of Directors based on the recommendation of management, as described below under the caption "2016 Long-Term Incentive Awards." Additional information is available for free at: http://is.gd/fFDngJ About Basic Energy Energy Services, Inc. provides a wide range of well site services in the United States to oil and natural gas drilling and producing companies, including completion and remedial services, fluid services, well servicing and contract drilling. These services are fundamental to establishing and maintaining the flow of oil and natural gas throughout the productive life of a well. The Company's broad range of services enables us to meet multiple needs of our customers at the well site. Basic Energy reported a net loss of $241.74 million in 2015 compared to a net loss of $8.34 million in 2014. As of Dec. 31, 2015, Basic Energy had $1.16 billion in total assets, $1.05 billion in total liabilities and $106.33 million in total stockholders' equity. "If we are unable to generate sufficient cash flow or are otherwise unable to obtain the funds required to make principal and interest payments on our indebtedness, or if we otherwise fail to comply with the various covenants in instruments governing any existing or future indebtedness, we could be in default under the terms of such instruments. In the event of a default, the holders of our indebtedness could elect to declare all the funds borrowed under those instruments to be due and payable together with accrued and unpaid interest, secured lenders could foreclose on any of our assets securing their loans and we or one or more of our subsidiaries could be forced into bankruptcy or liquidation. If our indebtedness is accelerated, or we enter into bankruptcy, we may be unable to pay all of our indebtedness in full. Any of the foregoing consequences could restrict our ability to grow our business and cause the value of our common stock to decline," the Company warned in its annual report for the year ended Dec. 31, 2015. * * * As reported by the TCR on March 30, 2016, Standard & Poor's Ratings Services lowered its corporate credit rating on Fort Worth-based Basic Energy Services Inc. to 'CCC+' from 'B-'. The outlook is negative. The TCR reported n March 14, 2016, that Moody's Investors Service downgraded Basic Energy Services, Inc.'s Corporate Family Rating (CFR) to Caa3 from Caa1, its senior unsecured notes rating to Ca from Caa2, and lowered its Speculative Grade Liquidity Rating to SGL-4 from SGL-3. The outlook remains negative. BAYTEX CREDIT: Case Summary & 3 Unsecured Creditors --------------------------------------------------- Debtor: Baytex Credit Corp. 4899 Montrose Blvd., Suite 805 Houston, TX 77006 Case No.: 16-31578 Chapter 11 Petition Date: April 1, 2016 Court: United States Bankruptcy Court Southern District of Texas (Houston) Judge: Hon. Marvin Isgur Debtor's Counsel: Jarrod B. Martin, Esq. NATHAN SOMMERS JACOBS, PC 2800 Post Oak Blvd, 61st Floor Houston, TX 77056 Tel: 713-892-4842 Fax: 713-892-4800 E-mail: jmartin@nathansommers.com Total Assets: $250,100 Total Liabilities: $1.25 million The petition was signed by William Walker, chairman and director. A list of the Debtor's three largest unsecured creditors is available for free at http://bankrupt.com/misc/txsb16-31578.pdf BG MEDICINE: To Voluntarily Deregister Common Stock --------------------------------------------------- BG Medicine, Inc. disclosed in a Form 8-K report filed with the Securities and Exchange Commission that given the significant cost and resource demands of being a public company, on March 25, 2016, the Board of Directors of the Company decided to voluntarily deregister the Company's common stock under the Securities Exchange Act of 1934, as amended, and become a non-reporting company. In connection therewith, the Board of Directors approved the filing with the Securities and Exchange Commission of a Form 15 to voluntarily deregister its securities under Section 12(g) of the Exchange Act and suspend its reporting obligations under Section 15(d) of the Exchange Act. The Company expects to file the Form 15 in April 2016. The Company expects that its obligations to file periodic reports, such as Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, will be suspended immediately upon the filing of the Form 15 with the SEC, and its proxy statement, Section 16 and other Section 12(g) reporting responsibilities will terminate effective 90 days after the filing of the Form 15. The Company is eligible to deregister its common stock under the Exchange Act because its common stock is held by fewer than 300 stockholders of record. As part of the deregistration process, and in furtherance of the Company's goal of reducing its expenses, on March 29, 2016, the Company filed a post-effective amendment to its registration statement on Form S-3 (Registration No. 333-204307) to deregister the remaining securities registered on such registration statement. The Company was awaiting the SEC's effectiveness order with respect to such post-effective amendment prior to filing the Form 10-K. On March 31, 2016, the SEC notified the Company that the post-effective amendment would be declared effective on March 31, 2016. The Company plans to file its Form 10-K on or before April 14, 2016, the fifteenth calendar day following the Form 10-K due date and prior to filing the Form 15. About BG Medicine Waltham, Mass.-based BG Medicine is a diagnostics company focused on the development and commercialization of novel cardiovascular diagnostic tests to address significant unmet medical needs, improve patient outcomes and contain healthcare costs. The Company is currently commercializing two diagnostic tests, the first of which is the BGM Galectin-3 test, a novel assay for measuring galectin-3 levels in blood plasma or serum for use as an aid in assessing the prognosis of patients diagnosed with heart failure. The Company's second diagnostic test is the CardioSCORE test, which is designed to identify individuals at high risk for near-term, significant cardiovascular events, such as heart attack and stroke. BG Medicine reported a net loss of $8.06 million in 2014, a net loss of $15.8 million in 2013 and a net loss of $23.8 million in 2012. As of Sept. 30, 2015, the Company had $3.35 million in total assets, $2.03 million in total liabilities, $2.59 million in convertible preferred stock, and a total stockholders' deficit of $1.27 million. Deloitte & Touche LLP, in Boston, Massachusetts, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2014, citing that the Company's recurring losses from operations, recurring cash used in operating activities and accumulated deficit raise substantial doubt about its ability to continue as a going concern. BH SUTTON: Lender Asks Court to Dismiss Ch. 11 Case --------------------------------------------------- Lender Sutton 58 Associates LLC asks the U.S. Bankruptcy Court to dismiss BH Sutton Mezz LLC's Chapter 11 case, or, in the alternative, modify the automatic stay to permit the Lender to pursue its state law remedies against the Debtor in this two-party, one asset dispute. According to the Lender, the Debtor has pursued this Chapter 11 as a litigation tactic to thwart the Lender and escape the effects of its nonbankruptcy litigation -- a foreclosure suit filed by the Lender before the State Court foreclosing on the Debtor's Membership Interest on the Property located at 428432 East 58th Street in New York City in relation to the Debtor's unpaid loan of $20 million. For instead of appealing or seeking stay in the Appellate Division when the Debtor's injunctive petition has been denied before the State Court, the Debtor filed this Chapter 11 Bankruptcy case to stop the Lender from foreclosing on its Membership Interest, the Lender alleges further. The Lender also tells the Court that there is nothing to reorganize in the instant case considering that the Debtor has no operations or employees and no assets other than the Membership Interest just a dispute over the Lender's right to foreclose on the Debtor's sole asset and thus the real purposes for the Debtor's bankruptcy filing are improper ones: forum shopping and opportunistic exploitation of the automatic stay. Alternatively, the Lender asks that the Court should modify the automatic stay to permit the Lender to pursue its state law remedies. The Lender asserts that the Debtor has no cash flow, no operations and no other assets to offer the Lender to adequately protect the Lender from the diminishing effect on the value of the Lender's collateral with the Debtor's continued use of such collateral without the Lender’s consent thereto. The Lender's Motion to Dismiss is scheduled to be heard on April 7, 2016. Sutton 58 Associates LLC is represented by: Adam C. Rogoff, Esq. P. Bradley O’Neill, Esq. Natan Hamerman, Esq. KRAMER LEVIN NAFTALIS & FRANKEL LLP 1177 Avenue of the Americas New York, New York 10036 Telephone: 212-715-9100 Facsimile: 212-715-8000 Email: arogoff@kramerlevin.com boneill@kramerlevin.com nhamerman@kramerlevin.com About BH Sutton New York City-based BH Sutton Mezz LLC filed for Chapter 11 protection (Bankr. S.D. NY Case No. 16-10455) on Feb. 26, 2016. The petition was signed by Herman Carlinsky, president. The Hon. Sean H. Lane presides over the case. Joseph S. Maniscalco, Esq., at Lamonica Herbst & Maniscalco, LLP represents the Debtor in its restructuring effort. The Debtor estimated assets at $100 million to $500 million and debts at $10 million to $50 million. BREF HR: Incurs $120 Million Net Loss in 2015 --------------------------------------------- BREF HR, LLC, filed with the Securities and Exchange Commission its annual report on Form 10-K disclosing a net loss of $120 million on $194 million of net revenues for the year ended Dec. 31, 2015, compared to a net loss of $103 million on $200 million of net revenues for the year ended Dec. 31, 2014. As of Dec. 31, 2015, the Company had $570 million in total assets, $992 million in total liabilities and a total members' deficit of $423 million. Deloitte & Touche LLP, Las Vegas, Nevada, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2015, citing that recurring losses from operations and the contractual debt repayments due April 4, 2016 raise substantial doubt about its ability to continue as a going concern. A full-text copy of the Form 10-K is available for free at: http://is.gd/eIDJG4 About BREF HR BREF HR, LLC owns and operates the Hard Rock Hotel & Casino Las Vegas. The company maintains its headquarters in New York. BREF is a Delaware limited liability company that was formed on February 11, 2011. The Company does not maintain a corporate website. The affairs of the Company are governed by a Limited Liability Company Agreement dated as of March 1, 2011. BROCK HOLDINGS: Moody's Lowers CFR to Caa1, Outlook Negative ------------------------------------------------------------ Moody's Investors Service downgraded Brock Holdings III, Inc.'s corporate family rating to Caa1 from B3. The downgrade reflects the deterioration in Brock's operating results and credit metrics, the company's strained liquidity profile with increased refinancing risk with maturities due during the next 12 to 18 months, and the expectation that the company's credit profile will remain weak over our time horizon. The rating outlook remains negative. This is a summary of Moody's ratings and rating actions taken for Brock Holdings III, Inc.'s: -- Corporate Family Rating, downgraded to Caa1 from B3; -- Probability of Default Rating, downgraded to Caa1-PD from B3-PD; -- $510 million first lien term loan, downgraded to B3 (LGD3) from B2 (LGD3); -- $190 million second lien term loan, downgraded to Caa3 (LGD5) from Caa2 (LGD5); -- Outlook remains Negative RATINGS RATIONALE Brock's key credit metrics have deteriorated over the last twelve months. The Caa1 corporate family rating reflects Moody's expectations for continued high debt leverage (measured as Moody's adjusted Debt to EBITDA) above 6.5x as well as Brock's relatively weak interest coverage (measured as EBITA/Interest) below 1.5x. The rating also takes into account Brock's minimal free cash flow generation capacity. Brock's Caa1 CFR is consistent with the company's deterioration in operating performance and key credit metrics under a challenging operating environment. The rating also reflects the expectation that Brock's end markets -mainly energy related- will continue to underperform during our time horizon driven mainly by historically low oil prices. The rating is further constrained by Brock's limited liquidity with maturities due in the near term. The negative outlook reflects our concerns about Brock's ability to improve operating performance enough to offset its top-line sales drop and successfully boost its key credit metrics in the next 12 to 18 months. The negative outlook also considers the risk of Brock being unable to meet its interest coverage covenants during our time horizon. WHAT COULD CHANGE RATINGS UP/DOWN Upgrade is unlikely in the near term. However, the outlook could be stabilized if the company improves its liquidity profile and credit ratios, including: -- Adjusted Debt to EBITDA is maintained at or below 6.5x. -- EBITA/interest expense sustained above 1.5x. -- Improvement in the company's liquidity profile along with increased covenant cushion. Alternatively, further downgrade may occur if Brock's operating performance deteriorates further, or its liquidity weakness goes unaddressed. Downgrade triggers include: -- Adjusted Debt to EBITDA nears 10.0x. -- EBITA/interest expense below 0.5x. -- Negative free cash flows. -- Inability to successfully refinance its existing capital structure within the next 6 to 9 months. CORPORATE PROFILE Headquartered in Houston, TX, Brock Holdings III, Inc. is a North American provider of scaffolding, insulation, coatings and other services for the refining, chemical and power industries. Lindsay Goldberg is Brock's primary owner. Revenues for the twelve months ended Sept. 30, 2015, totaled $1,411 million and the company recorded an adjusted net loss of $52 million. All Moody's calculations include Moody's standard adjustments. The principal methodology used in these ratings was Business and Consumer Service Industry published in December 2014. BROOKLYN EVENTS: Voluntary Chapter 11 Case Summary -------------------------------------------------- Debtor: Brooklyn Events LLC dba Verboten 54-60 North 11th Street Brooklyn, NY 11249 Case No.: 16-41371 Chapter 11 Petition Date: March 31, 2016 Court: United States Bankruptcy Court Eastern District of New York (Brooklyn) Judge: Hon. Carla E. Craig Debtor's Counsel: Scott Markowitz, Esq. TARTER KRINSKY & DROGIN LLP 1350 Broadway, 11th Floor New York, NY 10018 Tel: (212) 216-8000 Fax: 212-216-8001 E-mail: smarkowitz@tarterkrinsky.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Jen Schiffer, managing member. The Debtor did not include a list of its largest unsecured creditors when it filed the petition. BROOKLYN RENAISSANCE: Lists $27MM in Assets, $17.5MM in Debts ------------------------------------------------------------- Brooklyn Renaissance, LLC, filed with the U.S. Bankruptcy Court for the Eastern District of New York amended schedules of assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ----------- ----------- A. Real Property $26,900,000 B. Personal Property $85,000 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $17,280,662 E. Creditors Holding Unsecured Priority Claims $0 F. Creditors Holding Unsecured Non-Priority Claims $175,000 ----------- ----------- Total $26,985,000 $17,455,662 A copy of the schedules is available for free at: http://bankrupt.com/misc/BrooklynRenaissance_65_Dec11ASAL.pdf About Brooklyn Renaissance Brooklyn Renaissance, LLC, which manages various parcels of real property located in Kings, New York and Suffolk County, New York, sought Chapter 11 bankruptcy protection (Bankr. E.D.N.Y. Case No. 15-43122) on July 6, 2015 in Brooklyn. James McGown, the managing member, signed the petition. The case is assigned to Judge Nancy Hershey Lord. The Debtor tapped Jonathan S. Pasternak, Esq., at DelBello Donnellan Weingarten Wise & Wiederkehr, LLP, in White Plains, New York, as counsel. BUFFINGTON MASON: Case Summary & 5 Unsecured Creditors ------------------------------------------------------ Debtor: Buffington Mason Park, LTD 8601 Ranch Road 2222 Building I, Suite 150 Austin, TX 78730 Case No.: 16-10396 Nature of Business: Single Asset Real Estate Chapter 11 Petition Date: April 1, 2016 Court: United States Bankruptcy Court Western District of Texas (Austin) Judge: Hon. Tony M. Davis Debtor's Counsel: Stephen W. Sather, Esq. BARRON & NEWBURGER, P.C. 1212 Guadalupe, Suite 104 Austin, TX 78701 Tel: (512) 476-9103 Ext. 220 Fax: (512) 476-9253 E-mail: ssather@bn-lawyers.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $100 million to $500 million The petition was signed by T. Blake Buffington, Jr., VP of general partner. A list of the Debtor's five largest unsecured creditors is available for free at http://bankrupt.com/misc/txwb16-10396.pdf CAPITOL LAKES: Creditors' Panel Taps Grant Thornton as Consultant ----------------------------------------------------------------- The Official Committee of Unsecured Creditors of Capitol Lakes, Inc., seeks authority from the U.S. Bankruptcy Court for the Western District of Wisconsin to retain Grant Thornton, LLP as financial consultant to the Committee, nunc pro tunc to January 20, 2016. Capitol Lakes requires Grant Thornton to: (i) assist and advise the Committee in the analysis of the current financial position of the Debtor; (ii) assist and advise the Committee in its analysis of the Debtor's business plans, cash flow projections, restructuring, restructuring programs and other reports or analyses prepared by the Debtor or their professionals, in order to assist the Committee in its assessment of the business viability of the Debtor, the reasonableness of projections and underlying assumptions, the impact of market conditions on forecasted results of the Debtor; and the viability of the restructuring strategy pursued by the Debtor or other parties in interest; (iii) assist and advise the Committee regarding the reasonableness of the valuation reports and underlying projections prepared by the Debtor and the Debtor's secured lenders; (iv) analyze the Debtor's historical financial performance against industry benchmarks to identify additional opportunities for performance improvement; (v) assist and advise the Committee in its analysis of proposed transactions or other actions for which the Debtor or other parties in interest seek Court approval including, but not limited to, evaluation of competing bids in connection with the divestiture of corporate assets, DIP financing or use of cash collateral, assumption/rejection of leases and executor contracts (e.g., the PRS management agreement), extensions of exclusivity, objections to claims or liens, and other executor contracts, management compensation and/or retention and severance plans; (vi) assist and advise the Committee in its analysis of the Debtor's internally prepared financial statements and related documentation, in order to evaluate performance of the Debtor as compared to its projected results; (vii) review the Centers for Medicare and Medicaid Services report that supports the Debtor's recent 2-star rating for the skilled nursing facility to identify the key drivers of the rating; (viii) attend and advise at meetings/calls with the Committee and its counsel and representatives of the Debtor and other parties; (ix) assist and advise the Committee and its counsel in the development, evaluation and documentation of the optimal strategic positions to pursue in the Case including but not limited to any plans of reorganization or strategic transactions, including developing, structuring and negotiating the terms and conditions of potential plans or strategic transactions including the value of consideration that is to be provided thereunder; and (x) assist and advise the Committee in such other services as may be necessary and advisable to support the foregoing Services, including but not limited to, other bankruptcy, reorganization and related litigation support efforts, valuation assistance, corporate finance/M&A advice, compensation and benefits consulting, or other specialized services as may be requested by the Committee and agreed to by Grant in writing. Grant Thornton's hourly rates are: Professional Rate Per Hour ------------ ------------- Paul Melville Principal $695 Melissa Dimitri Director $525 Ethan Sooy Manager $410 Jonathan Marshburn Associate $250 Grant Thornton and the Committee have agreed that the firm will bill the Committee at a $375 blended hourly rate. Grant Thornton will also be reimbursed for reasonable out-of-pocket expenses incurred. Paul Melville, principal of Grant Thornton LLP, 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. Grant can be reached at: Paul Melville GRANT THORNTON LLP 171 N. Clark Street, Suite 200 Chicago, IL 60604 Tel: (312) 602-8360 E-mail: paul.melville@us.gt.com About Capitol Lakes Capitol Lakes Inc. owns and operates a continuing care retirement community ("CCRC") located in Madison, Wisconsin. The CCRC is comprised of: (i) an urban high rise containing 105 independent living units (the "Heights"), (ii) an apartment building containing 52 additional independent living units (the "Main Gate"), (iii) an assisted living residential facility containing 43 assisted living units (the "Terraces"), of which 39 are single occupancy and 4 are available for double occupancy, (iv) a skilled nursing facility with 85 active skilled nursing beds licensed by the Wisconsin Department of Health and Family Services and certified to participate in the Medicare and Medicaid programs (the "Health Center"), all located on a site of approximately 3.814 acres of land owned by Capitol Lakes located in the heart of downtown Madison, Wisconsin. On Jan. 20, 2016, Capitol Lakes filed a Chapter 11 bankruptcy petition (Bankr. W.D. Wisc. Case No. 16-10158). The case is assigned to Judge Robert D. Martin. As of Dec. 31, 2015, on a book value basis, Capitol Lakes has $57.6 million in assets and $104.2 million in liabilities. The Debtor has tapped DLA Piper LLP as its legal counsel, and Cain Brothers & Company LLC as its financial advisor. The Office of the U.S. Trustee appointed seven creditors to the official committee of unsecured creditors. They are Margaret Barker, John Burkhalter, Geri Dickson, Sally Drew, Patrick J. Holzem, Judith Snyderman and M. Crawford Young. Murphy Desmond S.C. represents the committee. CAPITOL LAKES: Hires DLA Piper as Bankruptcy Counsel ---------------------------------------------------- Capitol Lakes, Inc., seeks authority from the U.S. Bankruptcy Court for the Western District of Wisconsin to employ DLA Piper LLP (US) as bankruptcy counsel to the debtor, nunc pro tunc to January 20, 2016. Capitol Lakes requires DLA Piper to: (A) advise the Debtor with respect to its rights, powers and duties as a debtor and debtor in possession in the continued management and operation of its business and assets; (B) attend meetings and negotiate with representatives of creditors and other parties in interest and advise and consult on the conduct of the case, including all of the legal and administrative requirements of operating chapter 11; (C) take all necessary action to protect and preserve the Debtor's estate, including prosecution of actions on the Debtor's behalf, the defense of any actions commenced against the estate, negotiations concerning litigation in which the Debtor may be involved and objections to claims filed against the estate; (D) prepare, on behalf of the Debtor, all necessary and appropriate motions applications, answers, orders, reports, and papers necessary to the administration of the estate; (E) prepare and negotiate, on behalf of the Debtor, plans of reorganization, disclosure statements, and all related agreements and/or documents and taking any necessary action on behalf of the Debtor to obtain confirmation of such plans; (F) advise the Debtor in connection with its restructuring; (G) perform other necessary legal services and provide other necessary legal advice to the Debtor in connection with this case; and (H) appear before the Bankruptcy Court, any appellate courts, and the U.S. Trustee, and protecting the interests of the Debtor's estate before such courts and the U.S. Trustee. Capitol Lakes will pay DLA Piper at these hourly rates: Professional Title Rate Per Hour ------------ ----- ------------- Thomas R. Califano Partner $985 Michael Hynes Partner $980 Spencer Stiefel Associate $785 Dan Simon Associate $710 Rachel Nanes Associate $555 Mordechai Sutton Associate $460 Yohami Lam Guerra Paralegal $320 DLA Piper will also be reimbursed for reasonable out-of-pocket expenses incurred. The firm also provided the following information: -- DLA Piper represented the Debtor during the 12-month period prior to the Petition Date. During that time period, DLA Piper charged its standard rates. The billing rates and financial terms have not changed. -- DLA Piper is also subject to the budgeted amounts set forth in the Final Order: (1) Authorizing Capitol Lakes, Inc. to Use Cash Collateral; and (2) Granting Adequate Protection to Lenders. Thomas R. Califano, partner of DLA Piper LLP (US), 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. DLA Piper can be reached at: Thomas R. Califano, Esq. DLA PIPER LLP (US) 1251 Avenue of the Americas New York, NY 10020-1104 Tel: (212) 335-4500 Fax: (212) 335-4501 E-mail: thomas.califano@dlapiper.com About Capitol Lakes Capitol Lakes Inc. owns and operates a continuing care retirement community ("CCRC") located in Madison, Wisconsin. The CCRC is comprised of: (i) an urban high rise containing 105 independent living units (the "Heights"), (ii) an apartment building containing 52 additional independent living units (the "Main Gate"), (iii) an assisted living residential facility containing 43 assisted living units (the "Terraces"), of which 39 are single occupancy and 4 are available for double occupancy, (iv) a skilled nursing facility with 85 active skilled nursing beds licensed by the Wisconsin Department of Health and Family Services and certified to participate in the Medicare and Medicaid programs (the "Health Center"), all located on a site of approximately 3.814 acres of land owned by Capitol Lakes located in the heart of downtown Madison, Wisconsin. On Jan. 20, 2016, Capitol Lakes filed a Chapter 11 bankruptcy petition (Bankr. W.D. Wisc. Case No. 16-10158). The case is assigned to Judge Robert D. Martin. As of Dec. 31, 2015, on a book value basis, Capitol Lakes has $57.6 million in assets and $104.2 million in liabilities. The Debtor has tapped DLA Piper LLP as its legal counsel, and Cain Brothers & Company LLC as its financial advisor. The Office of the U.S. Trustee appointed seven creditors to the official committee of unsecured creditors. They are Margaret Barker, John Burkhalter, Geri Dickson, Sally Drew, Patrick J. Holzem, Judith Snyderman and M. Crawford Young. Murphy Desmond S.C. represents the committee. CATASYS INC: Reports $7.22 Million Net Loss for 2015 ---------------------------------------------------- Catasys, Inc., filed with the Securities and Exchange Commission its annual report on Form 10-K disclosing a net loss of $7.22 million on $2.70 million of revenues for the year ended Dec. 31, 2015, compared to a net loss of $27.3 million on $2.03 million of revenues for the year ended Dec. 31, 2014. As of Dec. 31, 2015, Catasys had $2.88 million in total assets, $11.6 million in total liabilities, and a total stockholders' deficit of $8.72 million. Rose, Snyder & Jacobs LLP, in Encino, California, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2015, citing that the Company has continued to incur significant operating losses and negative cash flows from operations during the year ended Dec. 31, 2015, and continues to have negative working capital at Dec. 31, 2015. These conditions raise substantial doubt about the Company's ability to continue as a going concern. Bankruptcy Warning "Our financial statements have been prepared on the basis that we will continue as a going concern. At December 31, 2015, cash and cash equivalents was $916,000 and we had a working capital deficit of approximately $2.7 million. We have incurred significant operating losses and negative cash flows from operations since our inception. During the twelve months December 31, 2015, our cash used in operating activities from continuing operations was $5.2 million. We anticipate that we could continue to incur negative cash flows and net losses for the next twelve months. The financial statements do not include any adjustments relating to the recoverability of the carrying amount of the recorded assets or the amount of liabilities that might result from the outcome of this uncertainty. As of December 31, 2015, these conditions raised substantial doubt as to our ability to continue as a going concern. We expect our current cash resources to cover expenses into April 2016; however delays in cash collections, revenue, or unforeseen expenditures could negatively impact our estimate. We are in need of additional capital, however, there is no assurance that additional capital can be timely raised in an amount which is sufficient for us or on terms favorable to us and our stockholders, if at all. If we do not obtain additional capital, there is a significant doubt as to whether we can continue to operate as a going concern and we will need to curtail or cease operations or seek bankruptcy relief. If we discontinue operations, we may not have sufficient funds to pay any amounts to stockholders." A full-text copy of the Form 10-K is available for free at: http://is.gd/5uHiTT About Catasys Inc. Based in Los Angeles, California, Hythiam, Inc., n/k/a Catasys, Inc., is a healthcare services management company, providing through its Catasys(R) subsidiary specialized behavioral health management services for substance abuse to health plans. CEETOP INC: Needs More Time to File 2015 Form 10-K -------------------------------------------------- Ceetop Inc. notified the Securities and Exchange Commission it cannot file its Dec. 31, 2015, Form 10-K within the prescribed time period because management has not completed the process of gathering and analyzing the financial information that will be included in the Company's Form 10-K. About Ceetop Inc. Oregon-based Ceetop Inc., formerly known as China Ceetop.com, Inc., owned and operated the online retail platform before 2013. Due to excessive competition in online retail, the Company has transformed itself into an integrated supply chain services provider, and focuses on B to B supply chain management and related value-added services among enterprises. Ceetop Inc. reported a net loss of $841,000 on $362,000 of sales for the year ended Dec. 31, 2014, compared with a net loss of $2.88 million on $0 of sales for the year ended Dec. 31, 2013. As of March 31, 2015, the Company had $3.52 million in total assets, $956,000 in total liabilities, all current, and $2.56 million in total stockholders' equity. MJF & Associates, APC, in Los Angeles, California, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2014, citing that the Company incurred recurring losses from operations, has a net loss of $841,000 for 2014, and has accumulated deficit of $9.45 million at Dec. 31, 2014. These matters raise substantial doubt about the Company's ability to continue as a going concern. CHAPARRAL ENERGY: Reports $1.33 Billion Net Loss for 2015 --------------------------------------------------------- Chaparral Energy, Inc., filed with the Securities and Exchange Commission its annual report on Form 10-K disclosing a net loss of $1.33 billion on $324.31 million of total revenues for the year ended Dec. 31, 2015, compared to net income of $209 million on $682 million of total revenues for the year ended Dec. 31, 2014. As of Dec. 31, 2015, Chaparral Energy had $1.20 billion in total assets, $1.82 billion in total liabilities and a total stockholders' deficit of $620 million. The Company's cash balance as of Feb. 29 and March 30, 2016, was approximately $202.9 million and $176.0 million, respectively. "Oil and natural gas prices have declined severely since mid 2014 and continue to be depressed in 2016. These lower commodity prices have negatively impacted revenues, earnings and cash flows, and sustained low oil and natural gas prices are having a material and adverse effect on our liquidity position. As of December 31, 2015, the total outstanding principal amount of our debt obligations was $1,607,127," the Company said in the report. The Company's auditors Grant Thornton LLP, in Oklahoma City, Oklahoma, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2015, citing that the Company incurred a net loss of approximately $1,334 million during the year ended Dec. 31, 2015, and as of that date, the Company's current liabilities exceeded its current assets by approximately $1,522 million and its total liabilities exceeded its total assets by approximately $620 million. Also, subsequent to Dec. 31, 2015, the Company is in default on its debt obligations. These conditions, along with other matters, raise substantial doubt about the Company's ability to continue as a going concern. "We may not be unable to enter into hedging transactions under our derivative contracts. "Each time we enter into a hedging transaction with a hedge counterparty, we must make a representation under the relevant derivative contract that there is no event of default or potential event of default occurring under that derivative contract. Any event of default or potential event of default under the debt facilities would trigger an event of default under our derivative contracts. As a result, we may not be able to enter into hedging transactions when we have outstanding events of default under our debt facilities. "As part of our restructuring efforts, we may seek bankruptcy court protection under Chapter 11 of the U.S. Bankruptcy Code, which could adversely impact our operations. "We are in the process of analyzing various strategic alternatives to address our liquidity and capital structure, including strategic and refinancing alternatives through a private restructuring, assets sales and a filing under Chapter 11 of the U.S. Bankruptcy Code," the Company added. A full-text copy of the Form 10-K is available for free at: http://is.gd/D1t5zh About Chaparral Founded in 1988, Chaparral Energy, Inc. is a Delaware corporation headquartered in Oklahoma City and a pure play Mid-Continent independent oil and natural gas exploration and production company. The Company has capitalized on its sustained success in the Mid-Continent area in recent years by expanding its holdings to become a leading player in the liquids rich STACK play, which is home to multiple oil-rich reservoirs including the Oswego, Meramec, Osage, Woodford and Hunton formations. In addition, the Company has significant holdings in the Mississippi Lime play and a leadership position in CO2 EOR where the Company is now the third largest CO2 EOR operator in the United States based on the number of active projects. This EOR position is underscored by the Company's activity in the North Burbank Unit in Osage County, Oklahoma, which is the single largest oil recovery unit in the state. CHARTER COMMUNICATIONS: Fitch Maintains BB- IDR on Watch Positive ----------------------------------------------------------------- Fitch Ratings has maintained the 'BB-' Issuer Default Ratings (IDR) assigned to CCO Holdings, LLC (CCOH) and Charter Communications Operating, LLC (CCO) on Rating Watch Positive. Fitch has also affirmed the specific issue ratings assigned to CCO Safari II, LLC (CCO Safari II) and CCO Safari III, LLC (CCO Safari III). A complete list of rating actions follows at the end of this release. Approximately $35.9 billion of debt (principal value) outstanding as of Dec. 31, 2015 is affected by Fitch's action. CCOH and CCO are indirect wholly owned subsidiaries of Charter Communications, Inc. (Charter). This release and maintenance of the Rating Watch are in accordance with Fitch's guidelines related to the review of Rating Watch status following Fitch's placement of the companies' ratings on Rating Watch Positive on April 2, 2015. Fitch placed CCOH and CCO's 'BB-' IDRs on Rating Watch Positive following the announcement of the acquisition of Bright House Networks (Bright House) from Advance/Newhouse Partnership (A/N). The Bright House acquisition is valued at $11.1 billion as of Feb. 4, 2016. Resolution of the Rating Watch will be based largely on Fitch's review of Charter's capital structure if the transactions are completed. Further inputs will include the assignment of potential equity credit to the convertible preferred partnership units and a further assessment of the risks associated with Charter's ability to integrate cable systems acquired from TWC and Bright House. Depending on the ultimate capital structure, a one- or two-notch upgrade could be possible. On May 23, 2015, Charter announced a merger with Time Warner Cable, Inc. (TWC) for total consideration of $203.28 per share as of Feb. 4, 2016, providing a total valuation for TWC of $80.1 billion. The offer consists of a combination of cash and Charter stock totaling $58.4 billion for all outstanding TWC shares. TWC shareholders have two options for the split between cash and Charter common stock: 1) $100.00 cash and 0.5409 shares of Charter common stock for each share of TWC common stock or 2) $115.00 cash and 0.4562 shares of Charter common stock for each share of TWC common stock. If shareholders choose the latter option, Charter has the financial flexibility, which may include a portion of the net proceeds from its February 2016 issuance of $1.7 billion of senior notes due 2024, to fund the increased cash needs. If Charter requires additional liquidity to satisfy cash funding needs for TWC shareholders, CCOH has committed financing in place for $5 billion of unsecured debt. KEY RATING DRIVERS M&A Activity Credit-Positive: Fitch views the TWC and Bright House transactions positively and believes they will strengthen Charter's overall credit profile. Fitch anticipates that Charter's total leverage, pro forma for both the TWC merger as it is currently structured and the Bright House acquisition, would be under 5x at closing. The Federal Communications Commission and the U.S. Department of Justice are expected to issue conditionally positive rulings within the next few weeks, while Charter has received approval from each state it will operate in, except California, which is expected to issue a ruling in May 2016. Integration Key to Success: Integration risks are elevated with two simultaneous transactions, and Charter's ability to manage the integration process and limit disruption to the company's overall operations is key to the success of the transactions. Credit Profile Changes: Charter's pro forma Fitch-calculated total leverage will exceed its target of 4x and 4.5x at closing, but is expected to fall below 4.5x within 12 months. In addition, the company stated it expects its first lien leverage to be below 3.5x following the completion of the TWC and Bright House transactions. On a pro forma operating basis, the combined company will serve 24 million customers and become the second largest cable multiple system operator in the country Improving Operating Momentum: Charter's operating strategies are having a positive impact on the company's operating profile, resulting in a strengthened competitive position. The market-share-driven strategy, focused on enhancing Charter's video service competitiveness and leveraging its all-digital infrastructure, is improving subscriber metrics, growing revenue and average revenue per unit (ARPU) trends, and stabilizing operating margins. Digital Initiatives Enable FCF Growth: Charter has completed its all-digital-service transition, which, along with the introduction of its interactive IP-based video user interface, positions the company to offer a more competitive service. Fitch anticipates these initiatives will alleviate residential video subscriber losses and increase service penetration while boosting ARPUs, and translate into accelerating revenue growth, margin expansion and growing free cash flow (FCF) generation. Strong FCF Provides Financial Flexibility: All three entities (Charter, TWC and Bright House) produce strong FCF that provide the companies, separately and in aggregate, substantial financial flexibility. Once the transactions are completed, Charter stated it will use FCF in the short term to meet existing and planned amortization, which along with EBITDA improvement is expected to lower leverage by 0.6x annually. They also stated there are no short-term plans for shareholder-friendly activities. KEY ASSUMPTIONS Due to the uncertainty surrounding approval of the TWC and Bright House transactions, Fitch's forecast reflects Charter on a standalone basis. Fitch's key assumptions within the rating case for Charter include: -- Low-to-mid-single-digit cable revenue growth highlighted by continued high-speed data and commercial service revenue growth. -- EBITDA margins remain flat reflecting ARPU growth from subscribers taking more advanced video services and higher speed data service tiers, offset by increased programming costs and spending to enhance customer service and products. -- Fitch estimates Charter will generate $400 million of FCF in 2016, slightly less than the anticipated $1 billion to $1.2 billion of FCF during 2017 and 2018, respectively. FCF in 2016 is negatively impacted by additional interest expense related to debt issued by CCOH Safari, LLC, CCO Safari II, and CCO Safari III (collectively, Safari Entities). RATING SENSITIVITIES Positive rating actions would be contemplated given the following: -- The TWC merger and the Bright House acquisition go forward as expected and total leverage is below 5.0x; -- If the company demonstrates progress in closing gaps relative to its industry peers in service penetration rates and strategic bandwidth initiatives; -- Operating profile strengthens as the company captures sustainable revenue and cash flow growth envisioned when implementing the current operating strategy. Fitch believes negative rating actions would likely occur given the following: -- A leveraging transaction or the adoption of a more aggressive financial strategy that increases leverage beyond 5.5x in the absence of a credible deleveraging plan; -- Adoption of a more aggressive financial strategy; -- A perceived weakening of Charter's competitive position or failure of the current operating strategy to produce sustainable revenue and cash flow growth along with strengthening operating margins. LIQUIDITY Fitch regards Charter's liquidity position and overall financial flexibility as satisfactory given the rating category. Charter's financial flexibility will improve in step with the growth of FCF generation. Charter generated $519 million of FCF during the year ended Dec. 31, 2015. Although FCF had been increasing due primarily to a decrease in capital expenditures driven by the completion of Charter's transition to all-digital in 2014, 2015 was negatively impacted by interest expense associated with debt issued for the transactions. The company's liquidity position includes cash of $5 million, excluding cash held in escrow at Safari Entities, and is supported by $961 million of borrowing capacity from its $1.3 billion revolver and anticipated FCF generation. Commitments under the company's revolver will expire in April 2018. Fitch notes that the revolver will increase to $3 billion as part of the TWC and Bright House transactions. Charter's leverage as of the last 12 months ended Dec. 31, 2015 was 4.1x, excluding the debt issued by Safari Entities. Charter's total leverage target remains unchanged, ranging between 4x and 4.5x, and will remain unchanged following the completion of the transactions. Fitch recognizes that a large portion of the TWC transaction will involve senior secured debt, both at TWC and the Safari Entities, including approximately $22.5 billion of existing TWC senior secured debt. All existing TWC and Safari Entities first-lien debt will be rolled into CCO and will have equal and ratable security with all existing Charter first-lien debt. Charter stated it expects its first lien leverage of 3.5x upon the closing of the transactions. Depending on the ultimate capital structure, a one- or two-notch upgrade of Charter's IDR and existing ratings could be possible provided that pro forma senior secured leverage is at or below 4x and total leverage does not exceed 5x. Charter proactively extended its maturity profile and only 5% of outstanding debt matures before 2019, including $93 million and $102 million during 2016 and 2017, respectively. Fitch believes that Charter has the financial flexibility to retire near-term maturities with cash on hand and future FCF. FULL LIST OF RATING ACTIONS Fitch maintains the following ratings on Rating Watch Positive: CCO Holdings, LLC -- Long-term IDR 'BB-'; -- Senior unsecured 'BB-'. Charter Communications Operating, LLC -- Long-term IDR 'BB-'; -- Senior secured 'BB+'. CCOH Safari, LLC -- Senior unsecured 'BB'. Fitch affirms the following issue ratings: CCO Safari II, LLC --Senior secured at 'BBB-'. CCO Safari III, LLC -- Senior secured at 'BBB-' CLEANFUEL USA: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: CleanFUEL USA, Inc. 111 Halmar Cove Georgetown, TX 78628 Case No.: 16-10398 Type of Business: Designs and manufactures alternative fuel equipment for propane auto gas Chapter 11 Petition Date: April 3, 2016 Court: United States Bankruptcy Court Western District of Texas (Austin) Judge: Hon. Christopher H. Mott Debtor's Counsel: Kell C. Mercer, Esq. KELL C. MERCER, P.C. 1602 E. Cesar Chavez Austin, TX 78702 Tel: 512-627-3512 Fax: (512) 597-0767 Email: kell.mercer@mercer-law-pc.com - and - Daniel C. Roberts, Esq. C. DANIEL ROBERTS & ASSOCIATES, P.C. 1602 East Cesar Chavez Austin, TX 78702 Tel: (512) 494-8448 Fax: (512) 494-8712 Email: droberts@cdrlaw.net Estimated Assets: $10 million to $50 million Estimated Debts: $10 million to $50 million The petition was signed by Curtis J. Donaldson, president and CEO. List of Debtor's 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ AMTROL Inc $32,655 Continental Automotive Italy $55,225 Endress + Hauser $185,116 Exotic Automation & Supply $64,255 Force 911 $34,461 Greg Sales $564,850 2626 Ravello Ridge Drive Austin, TX 78735 ICOM North America, LLC $240,834 Kent Rubber Supply $48,974 Minarik Automation & Control $46,435 RTD Manufacturing $81,073 Scott, Douglass & McConnico, LLP $107,563 Select Premium Services, Inc. $55,057 South Coast $1,118,055 Partners, LLC 2626 Ravello Ridge Drive Austin, TX 78735 Tejas Propane, LLC $136,107 Terry Klare $554,722 5949 Sherry Lane Ste 970 Dallas, TX 75225 Thomas Built Buses $102,500 U.S. Dept of Energy Morgantown Campus $1,762,468 3610 Collins Ferry Road PO Box 880 Morgantown, WV 26507-0880 United Loan $1,899,100 Processing PO Box 2373 Charleston, WV 25328 Whitney Bank Credit Card Center $35,000 Whitney Bank Lake Charles $155,010 Commercial Len COLORADO TIRE: 341 Meeting of Creditors Set for April 15 -------------------------------------------------------- The meeting of creditors of Colorado Tire Corp. is set to be held on April 15, 2016, at 1:30 p.m. The meeting will be held at the U.S. Courthouse, Room 4107, according to a filing with the U.S. Bankruptcy Court for the Western District of Washington. The court overseeing the bankruptcy case of a company schedules the meeting of creditors usually about 30 days after the bankruptcy petition is filed. The meeting is called the "341 meeting" after the section of the Bankruptcy Code that requires it. A representative of the company is required to appear at the meeting and answer questions under oath. The meeting is presided over by the U.S. trustee, the Justice Department's bankruptcy watchdog. About Colorado Tire Colorado Tire Corporation ("CTC") is one of three companies in the world that successfully designed, developed and delivered the 63" and 57" super-giant OTR tires to mining companies before 2007. Since then, Colorado Tire has been a global leader in performance-guaranteed OTR tires and is committed to great service in addition to high-quality OTR tires of all sizes. Colorado Tire offers full range OTR tires from 16" up to 63", in addition to other types of rubber tires, and is dedicated to continuously improving Colorado OTR tire's onsite performance worldwide. Colorado Tire filed Chapter 11 bankruptcy petition (Bankr. W.D. Wash. Lead Case No. 16-11345) on March 15, 2016. The petition was signed by Joan Lee, president of Debtor. The Debtor has estimated assets of $50 million to $100 million and estimated debts of $1 million to $10 million. The case has been assigned to Judge Christopher M Alston. COMSTOCK MINING: Closes Public Offering of $3.5M Common Stock ------------------------------------------------------------- Comstock Mining Inc. has closed its previously announced underwritten public offering of 10,000,000 shares of its common stock at an offering price of $0.35 per share of common stock. Gross proceeds to the Company from this offering are approximately $3,500,000 before deducting underwriting discounts and commissions and other estimated offering expenses payable by the Company. The Company granted the underwriter a 45-day option to purchase up to an aggregate of 1,500,000 additional shares of its common stock to cover over-allotments, if any. Aegis Capital Corp. acted as sole book running manager for the offering. Northland Capital Markets and Tectonic Advisory Partners (acting through Ecoban Securities Corporation) acted as financial advisors to the Company. The offering was made pursuant to an effective shelf registration statement (No. 333-208824) previously filed with the U.S. Securities and Exchange Commission. A final prospectus supplement and accompanying base prospectus relating to the offering were filed with the SEC. Copies of the final prospectus supplement and accompanying prospectus relating to this offering may be obtained from the SEC's website at www.sec.gov or from Aegis Capital Corp., Prospectus Department, 810 Seventh Avenue, 18th Floor, New York, NY, 10019, telephone: 212-813-1010 or email: prospectus@aegiscap.com. About Comstock Mining Virginia City, Nev.-based Comstock Mining Inc. is a Nevada-based, gold and silver mining company with extensive, contiguous property in the historic Comstock district. The Company began acquiring properties in the Comstock District in 2003. Since then, the Company has consolidated a substantial portion of the Comstock district, secured permits, built an infrastructure and brought the exploration project into test mining production. The Company continues acquiring additional properties in the Comstock district, expanding its footprint and creating opportunities for exploration and mining. The goal of the Company's strategic plan is to deliver stockholder value by validating qualified resources (measured and indicated) and reserves (probable and proven) of 3,250,000 gold equivalent ounces by 2013, and commencing commercial mining and processing operations by 2011, with annual production rates of 20,000 gold equivalent ounces. Comstock Mining reported a net loss available to common shareholders of $15.9 million on $18.5 million of total revenues for the year ended Dec. 31, 2015, compared to a net loss available to common shareholders of $13.3 million on $25.6 million of total revenues for the year ended Dec. 31, 2014. As of Dec. 31, 2015, the Company had $43.2 million in total assets, $24.5 million in total liabilities and $18.8 million in total stockholders' equity. COMSTOCK MINING: Partners with American Mining for Mining Services ------------------------------------------------------------------ Comstock Mining Inc. disclosed in a press release that it has entered into an agreement with its strategic partner, American Mining and Tunneling, LLC and American Drilling Corp, LLC, for $5 million in underground mine development, drilling and mining services. These services will be provided in exchange for the issuance of up to 9,000,000 shares of its common stock, at a value of at least $0.56 per share. The shares to be issued to the American Group will be issued in exchange for future drilling, mine development and underground mining services in connection with, but not limited to, the Company's construction of an underground exploration portal, mining infrastructure and development of the Company's Lucerne and Dayton Mine projects. When such shares are issued, they will be restricted shares subject to a minimum six-month holding period by AMT, during which time the issued shares may not be sold. Mr. Corrado De Gasperis, president & CEO of Comstock Mining, commented, "We consider the American Group as the best all-around partner for underground drilling and development competencies as we both strengthen our commitments and grow our mutual investment in Nevada mining. By investing with and in us, the collaboration with the American Group has achieved another level of strategic partnering as we position our Nevada-based platform for the next level of performance." The Company has previously partnered with the American Group based on their broad underground drilling, development and underground mining expertise and quality services to the mining industry, and especially in North America, with a special focus in Nevada. Mr. Steve Elloway, president & CEO of American Group, commented, "Our industry is emerging from three tough years of rationalized exploration and underdevelopment. We continue partnering with companies in good jurisdictions, having broad development opportunities and high quality, growth-minded, management teams that have invested in their district and positioned themselves for growth." About Comstock Mining Virginia City, Nev.-based Comstock Mining Inc. is a Nevada-based, gold and silver mining company with extensive, contiguous property in the historic Comstock district. The Company began acquiring properties in the Comstock District in 2003. Since then, the Company has consolidated a substantial portion of the Comstock district, secured permits, built an infrastructure and brought the exploration project into test mining production. The Company continues acquiring additional properties in the Comstock district, expanding its footprint and creating opportunities for exploration and mining. The goal of the Company's strategic plan is to deliver stockholder value by validating qualified resources (measured and indicated) and reserves (probable and proven) of 3,250,000 gold equivalent ounces by 2013, and commencing commercial mining and processing operations by 2011, with annual production rates of 20,000 gold equivalent ounces. Comstock Mining reported a net loss available to common shareholders of $15.9 million on $18.5 million of total revenues for the year ended Dec. 31, 2015, compared to a net loss available to common shareholders of $13.3 million on $25.6 million of total revenues for the year ended Dec. 31, 2014. As of Dec. 31, 2015, the Company had $43.2 million in total assets, $24.5 million in total liabilities and $18.8 million in total stockholders' equity. CONGREGATION BIRCHOS: Court to Hear Plan Confirmation May 3 ----------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of New York is set to hold a hearing on May 3, 2016, to consider approval of the Chapter 11 plan of reorganization proposed by TD Bank N.A. for Congregation Birchos Yosef. The proposed plan calls for the swift sale of Congregation Birchos' real property. Proceeds from the sale will be used to pay creditors in full. Under the plan, TD Bank's $9.2 million secured claim will be paid from the sale proceeds. In case the net proceeds are less than the amount of the secured claim, the deficiency portion will be treated as an unsecured claim. General unsecured claims estimated at $1 million will be paid in full from the available cash or the litigation proceeds. Meanwhile, mechanic's lien claims), if allowed, will be paid from the net proceeds from the sale of the 201 Route 306 property, according to court filings. About Congregation Birchos Yosef Congregation Birchos Yosef is a religious corporation which was formed on Jan. 16, 1985 for the purposes of creating and maintaining a "House of Worship" in accordance with the traditions of the Hebrew faith and to serve and advance the affairs of the surrounding community under the leadership of the Grand Rebbe of Nikolsburg. Its principal office is located at 201 Route 306, Monsey, New York. It has real properties located in Spring Valley and Monsey, New York. Congregation Birchos Yosef sought bankruptcy protection (Bankr. S.D.N.Y. Case No. 15-22254) in White Plains, New York, on Feb. 26, 2015. Breindy Lebovits, the vice-president, signed the petition. The Debtor estimated assets and debt of $10 million to $50 million. On May 4, 2015, the Debtor won approval to hire (i) Pick & Zabicki LLP as its counsel, (ii) Frances M. Caruso as its bookkeeper and (iii) Montalbano, Condon & Frank, P.C. as special counsel for real property tax-related matters. On May 18, the Court authorized the Debtor's retention of Levine & Associates, PC as special litigation counsel. On Sept. 11, 2015, the Court approved the retention of The Law Offices of David Carlebach, Esq. as the Debtor's substituted bankruptcy counsel. On Nov. 11, 2015, the Debtor filed a stipulation of substitution of counsel, reflecting that The Law Offices of Allen A. Kolber, Esq. will serve as the Debtor's substituted bankruptcy counsel. CORD BLOOD: Reports $438,000 Net Income for 2015 ------------------------------------------------ Cord Blood America, Inc., filed with the Securities and Exchange Commission its annual report on Form 10-K disclosing income of $437,935 on $5.25 million of revenue for the year ended Dec. 31, 2015, compared to income of $240,050 on $4.33 million of revenue for the year ended Dec. 31, 2014. Stephen Morgan, interim president of Cord Blood America, Inc. commented, "Our 2015 full year growth was driven primarily from the tissue side of the business. However, new orders for tissue procurement services were reduced significantly starting in October 2015 and completely ceased in March 2016. As it is unclear whether this revenue will return, the Company continues to diligently manage expenses in relation to revenue." Added David Sandberg, chairman of the Board, "With operating and other expenses reduced in tandem with the reduction in our tissue business, we expect the overall business to continue to generate positive EBITDA in 2016, albeit at lower levels than achieved in 2015. Despite a reduced marketing budget, the Company continues to sign new clients to storage contracts based on continued inbound inquiries from families interested in our services. We believe this is due to customer recognition of the longstanding Corcell brand name. As previously announced, Boxwood Advisors, LLC has been engaged to assist with our evaluation of strategic alternatives. We will provide further updates as warranted." For the three months ended Dec. 31, 2015, total revenue decreased to approximately $1.13 million from $1.20 million, a decrease of approximately 5.1% compared to the same period of 2014. The decrease in revenue is due primarily to a decrease in orders for the Company's tissue procurement services. Cost of services as a percentage of revenue increased to 36.0% for the three month period ending Dec. 31, 2015, compared to 32.8% the same prior period of 2014. Gross profit decreased by approximately $0.08 million or 9.6% to approximately $0.73 million for the three month period ending Dec. 31, 2015, from the comparable three month period of 2014. The Company's net income was $0.02 million for the three month period ending Dec. 31, 2015, compared to $0.02 million for the period ended Dec. 31, 2014. As of Dec. 31, 2015, Cord Blood had $3.70 million in total assets, $3.22 million in total liabilities and $474,433 in total stockholders' equity. At Dec. 31, 2015, the company had $0.79 million in cash, an increase of $0.04 million or 5% from the prior comparative period of 2014. Cash flows from operations are currently sufficient to fund operations, though net cash provided by operating activities for the year ended December 31, 2015 decreased to $0.73 million from $0.78 million from the prior comparative period of 2014. During the last 12 months of 2015 there was no increase in notes payable for purposes of working capital, and the Company made payments toward notes payable to Tonaquint, Inc. A full-text copy of the Form 10-K is available for free at: http://is.gd/TEksdk About Cord Blood Based in Las Vegas, Nevada, Cord Blood America, Inc., is primarily a holding company whose subsidiaries include Cord Partners, Inc., CorCell Co. Inc., CorCell Ltd.; CBA Professional Services, Inc. D/B/A BodyCells, Inc.; CBA Properties, Inc.; and Career Channel Inc, D/B/A Rainmakers International. Cord specializes in providing private cord blood stem cell preservation services to families. BodyCells is a developmental stage company and intends to be in the business of collecting, processing and preserving peripheral blood and adipose tissue stem cells allowing individuals to privately preserve their stem cells for potential future use in stem cell therapy. Properties was formed to hold the corporate trademarks and other intellectual property of CBAI. Rain specializes in creating direct response television and radio advertising campaigns, including media placement and commercial production. * * * This concludes the Troubled Company Reporter's coverage of Cord Blood America, inc. until facts and circumstances, if any, emerge that demonstrate financial or operational strain or difficulty at a level sufficient to warrant renewed coverage. COYNE INTERNATIONAL: Harbridge Okayed as Pension Consultant ----------------------------------------------------------- The Hon. Margaret Cangilos-Ruiz for the U.S. Bankruptcy Court for the Northern District of New York authorized Coyne International Enterprises Corp. to employ Harbridge Consulting Group, LLC, as pension consultant nunc pro tunc to the Petition Date. Harbridge, a national consulting firm with an office located at One Lincoln Center, Syracuse, New York, will continue to provide services as their outside pension consultants in the Chapter 11 case. Harbridge has provided the Debtors with pension consulting services. Harbridge will provide certain consulting services to the Debtor with respect to the Pension Plans, including providing actuarial consulting services related to the Debtor's multiemployer pension plan participation. The hourly rates of Harbridge's personnel are: Staff Member Hourly Billing Rates ------------ -------------------- Daniel Driscoll, associate $150 Aaron Fields, consultant $210 David Pazamickas, senior consultant $350 Sarah Dam, senior VP $400 Harbridge will also charge for reinbursement of expenses incurred in relation to the engagement. To the best of the Debtor's knowledge, Harbridge is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. The Debtor is represented by: Robert L. Rattet, Esq. Andrew C. Gold, Esq. Stephen B. Selbst, Esq. HERRICK, FEINSTEIN LLP 2 Park Avenue New York, NY 10016 Tel: (212) 592-1400 Fax: (212) 592-1500 E-mails: rrattet@herrick.com agold@herrick.com sselbst@herrick.com William J. Brown, Esq. PHILLIPS LYTLE LLP 125 Main Street Buffalo, NY 14203 Tel: (716) 847-7089 E-mail: wbrown@phillipslytle.com About Coyne International Coyne International Enterprises Corp. filed a Chapter 11 Bankruptcy petition (Bankr. N.D.N.Y. Case No. 15-31160) on July 31, 2015. The petition was signed by Mark Samson as CEO. Herrick Feinstein LLP serves as the Debtor's general counsel. Phillips Lytle LLP acts as the Debtor's local bankruptcy counsel. Cohnreznick LLP is the Debtor's financial advisor. SSG Capital Advisors LLC is the Debtor's investment banker. Rust Omni serves the Debtor as claims and administrative agent. Raab, Sturm & Ganchrow, LLP acts as labor counsel to the Debtor. Harbridge Consulting Group, LLC serves as the Debtor's pension consultant. Beveridge & Diamond PC is the Debtor's environmental counsel. GZA Geoenvironmental, Inc. serves as the Debtor's environmental consultant. The Troubled Company Reporter, on Jan. 12, 2016, reported that Medley Opportunity Fund II LP sought and obtained from Judge Margaret Cangilos-Ruiz the conversion of its Chapter 11 case to a case under Chapter 7. CUMULUS MEDIA: Amends Employment Agreements with Executives ----------------------------------------------------------- Cumulus Media Inc., on March 30, 2016, entered into amendments to its employment agreements with each of Joseph P. Hannan, the Company's senior vice president, treasurer and chief financial officer, and Richard S. Denning, the Company's senior vice president, secretary and general counsel. The Executive Employment Agreement Amendments modify the annual cash bonus structure applicable for each of Messrs. Hannan and Denning. Pursuant to the Executive Employment Agreement Amendments, effective Jan. 1, 2016, each of Messrs. Hannan and Denning will be eligible for an annual cash bonus based upon achievement of performance criteria or goals set forth in an annual executive incentive plan proposed by the chief executive officer to the compensation committee of the Company's board of directors for its approval. The annual cash bonus will be calculated as a percentage of each executive's base salary, with target award opportunities for Mr. Hannan of 50% and Mr. Denning of 40%, or a higher amount as determined by the Chief Executive Officer. In any year in which the Compensation Committee approves the EIP, it may adjust, only in respect of that year, the target bonus applicable for each executive. The Company is party to an employment agreement with Suzanne Grimes, the Company's executive vice president of Corporate Marketing and President of Westwood division, which agreement was also amended on March 30, 2016. The Grimes Employment Agreement has an initial term through July 3, 2018, and contains a provision for automatic extensions for one-year periods thereafter, unless terminated in advance by either party in accordance with the terms thereof. The Grimes Employment Agreement provides that Ms. Grimes is entitled to receive an annual base salary of $600,000, subject to annual increase. The Grimes Employment Agreement also provides that, beginning in 2016, Ms. Grimes will be eligible for an annual cash bonus based upon the achievement of performance criteria or goals set forth in an EIP proposed by the Chief Executive Officer, similar to that of the Company's other executive officers. Ms. Grimes target award opportunity is set at 80% of her base salary, subject to the potential adjustment as described above for the Company's other executive officers. The Grimes Employment Agreement provides that Ms. Grimes was entitled to receive an initial award of options to purchase 200,000 shares of the Company's Class A common stock and that she be eligible to receive, and that the Chief Executive Officer will recommend that she receive, an additional award of options to purchase 200,000 shares of the Company's Class A common stock in the first quarter of 2017, subject to the approval of the Compensation Committee. In the event the Company terminates Ms. Grimes's employment without "cause" or if Ms. Grimes terminates her employment for "good reason" (as these terms are defined in the Grimes Employment Agreement) during the term of the agreement, subject to Ms. Grimes entering into a separation and release agreement with the Company (which shall include a non-disparagement commitment from Ms. Grimes), Ms. Grimes will be entitled to the following: * payment of her base salary and target annual bonus through the remaining term of the agreement; * at the Company's election, reimbursement or direct payment for 18 months of COBRA coverage, provided that Ms. Grimes elects such coverage and remains eligible therefor. In the event Ms. Grimes is terminated with cause, then the Company will only be obligated to pay her any unpaid base salary, earned and payable bonus payments and unreimbursed expenses that were accrued, but unpaid. If Ms. Grimes' employment is terminated due to death or disability, the Company will be obligated to pay only her earned, but unpaid base salary. During her employment and for 12 months following her termination, Ms. Grimes is subject to compliance with confidentiality and non-solicitation covenants in the Grimes Employment Agreement. In addition, during her employment and for six months following her termination, Ms. Grimes is subject to a non-compete covenant in the Grimes Employment Agreement. Also on March 30, 2016, the Company and Mary G. Berner, the Company's chief executive officer, entered into an amendment to her employment agreement, dated Sept. 29, 2015, pursuant to which Ms. Berner's title changed from chief executive officer to president and chief executive officer. About Cumulus Media Cumulus Media Inc. (CMLS) combines high-quality local programming with iconic, nationally syndicated media, sports and entertainment brands in order to deliver premium choices for listeners, provide substantial reach for advertisers and create opportunities for shareholders. As the largest pure-play radio broadcaster in the United States, Cumulus provides exclusive content that is fully distributed through approximately 460 owned-and-operated stations in 90 U.S. media markets (including eight of the top 10), more than 10,000 broadcast radio affiliates and numerous digital channels. Cumulus is well-positioned in the widening digital audio space through a significant stake in the Rdio digital music service, featuring 30 million songs on-demand in addition to custom playlists and exclusive curated channels. Cumulus is also the leading provider of country music and lifestyle content through its NASH brand, which will serve country fans through radio programming, NASH magazine, concerts, licensed products and television/video. For more information, visit www.cumulus.com Cumulus Media put AR Broadcasting Holdings Inc. and three other units to Chapter 11 protection (Bankr. D. Del. Lead Case No. 11-13674) in 2011 after struggling to pay off debts that topped $97 million as of June 30, 2011. Cumulus Media reported a net loss attributable to common shareholders of $546.49 million on $1.16 billion of net revenue for the year ended Dec. 31, 2015, compared to net income attributable to common shareholders of $11.76 million on $1.26 billion of net revenue for the year ended Dec. 31, 2014. As of Dec. 31, 2015, Cumulus Media had $3.02 billion in total assets, $3 billion in total liabilities and $16.03 million in total stockholders' equity. * * * Standard & Poor's Ratings Services said that it lowered its corporate credit rating on Atlanta-based radio broadcaster Cumulus Media Inc. to 'B-' from 'B', as reported by the TCR on Nov. 10, 2015. As reported by the TCR on Sept. 17, 2015, Moody's Investors Service downgraded Cumulus Media Inc.'s Corporate Family Rating to B3 from B2. Cumulus' B3 Corporate Family Rating reflects Moody's expectation that debt-to-EBITDA will remain elevated and in the mid to high 8x through FYE2015 (including Moody's standard adjustments) due to continued revenue declines in core ad sales and network revenue as well as the absence of political ad spending in 2015, an odd numbered year. DOLPHIN DIGITAL: Delays Filing of 2015 Form 10-K ------------------------------------------------ Dolphin Digital Media, Inc. filed with the U.S. Securities and Exchange Commission a Notification of Late Filing on Form 12b-25 with respect to its annual report on Form 10-K for the year ended Dec. 31, 2015. The Company said the Form 10-K could not be filed within the prescribed time because additional time is required by its management and auditors to prepare certain financial information to be included in that report. About Dolphin Digital Coral Gables, Florida-based Dolphin Digital Media, Inc., is dedicated to the twin causes of online safety for children and high quality digital entertainment. By creating and managing child-friendly social networking websites utilizing state-of the- art fingerprint identification technology, Dolphin Digital Media, Inc. has taken an industry-leading position with respect to internet safety, as well as digital entertainment. Dolphin Digital reported a net loss of $1.87 million on $2.07 million of total revenue for the year ended Dec. 31, 2014, compared to a net loss of $2.46 million on $2.29 million of total revenue for the year ended Dec. 31, 2013. As of Sept. 30, 2015, the Company had $3.07 million in total assets, $14.3 million in total liabilities, all current, and a total stockholders' deficit of $11.3 million. BDO USA, LLP, in Miami, Florida, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2014, citing that the Company has suffered recurring losses from operations, negative cash flows from operations, and does not have sufficient working capital. These events raise substantial doubt about the Company's ability to continue as a going concern. DOLPHIN DIGITAL: Incurs $4.05 Million Net Loss in 2015 ------------------------------------------------------ Dolphin Digital Media, Inc. filed with the Securities and Exchange Commission its annual report on Form 10-K disclosing a net loss of $4.05 million on $2.99 million of total revenue for the year ended Dec. 31, 2015, compared to a net loss of $1.87 million on $2.07 million of total revenue for the year ended Dec. 31, 2014. As of Dec. 31, 2015, Dolphin Digital had $2.92 million in total assets, $15.80 million in total liabilities and a total stockholders' deficit of $12.87 million. BDO USA, LLP, in Miami, Florida, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2015, citing that the Company has suffered recurring losses from operations, negative cash flows from operations, and does not have sufficient working capital. These events raise substantial doubt about the Company's ability to continue as a going concern. A full-text copy of the Form 10-K is available for free at: http://is.gd/clltS4 About Dolphin Digital Coral Gables, Florida-based Dolphin Digital Media, Inc., is dedicated to the twin causes of online safety for children and high quality digital entertainment. By creating and managing child-friendly social networking websites utilizing state-of the- art fingerprint identification technology, Dolphin Digital Media, Inc. has taken an industry-leading position with respect to internet safety, as well as digital entertainment. DRAFTDAY FANTASY: Board OKs Exchange Agreement with MGT ------------------------------------------------------- On Sept. 8, 2015, DraftDay Fantasy Sports, Inc. entered into an Asset Purchase Agreement with MGT Capital Investments, Inc. and MGT Sports, Inc., pursuant to which the Company acquired all of the assets of the DraftDay.com business from MGT. Under the Asset Purchase Agreement, the Company issued a promissory note to MGT Sports, Inc. in the amount of $1,875,000, bearing interest at the rate of 5% per annum, which was due on March 8, 2015. The Company recently disclosed in a regulatory filing with the Securities and Exchange Commission that on March 24, 2016, the Company's Board of Directors approved the Company entering into an exchange agreement with MGT relating to the MGT Note. Under the MGT Exchange Agreement, the MGT Note will be exchanged in full for (a) approximately $51,302.74 in cash representing the six months of accrued interest; (b) 2,748,353 common shares of Company stock in exchange for a reduction in the remaining principal amount of $824,506; and (c) 110 shares of a new Series D convertible preferred series of Company stock. The $940,505 remaining due under the note will be due on July 31, 2016. About DraftDay DraftDay Fantasy Sports Inc., formerly known as Viggle Inc., offers a high quality daily fantasy sports experience directly to consumers and to businesses desiring turnkey solutions to new revenue streams. DraftDay Fantasy Sports Inc. is the largest shareholder of DraftDay Gaming Group, with a 44% stake. Sportech owns 35%. By combining and capitalizing on the well-established operational business assets of DraftDay and Sportech, the new DraftDay is well-positioned to become a significant player in the explosive fantasy sports market. DraftDay has paid out over $30 million in prizes with increased player retention and brand loyalty. DraftDay Fantasy Sports also operates MyGuy and Viggle Football both of which offer real-time interactive participation with professional and college football games; Wetpaint, which offers entertainment and celebrity news; and Choose Digital, a digital marketplace platform that allows companies to incorporate digital content into existing rewards and loyalty programs in support of marketing and sales initiatives. As of Dec. 31, 2015, Draftday had $38.81 million in total assets, $60.08 million in total liabilities, $12.28 million in series C convertible redeemable preferred stock, and a $33.54 million total stockholders' deficit. "The Company is unlikely to generate significant revenue or earnings in the immediate or foreseeable future. The continuation of the Company as a going concern is dependent upon the continued financial support from its stockholders, the ability of the Company to obtain necessary equity or debt financing to continue development of its business and to generate revenue. Management intends to raise additional funds through equity and/or debt offerings until sustainable revenues are developed. There is no assurance such equity and/or debt offerings will be successful and therefore there is substantial doubt about the Company's ability to continue as a going concern within one year after the financial statements are issued," according to the Company's quarterly report for the period ended Dec. 31, 2015. DRAFTDAY FANTASY: Draws Entire $1.5M Under SIC VI Facility ---------------------------------------------------------- As previously reported by DraftDay Fantasy Sports, Inc. on a Form 8-K filed on Feb. 2, 2016, Sillerman Investment Company VI LLC, an affiliate of Robert F.X. Sillerman, the executive chairman and chief executive officer of the Company entered into a secured revolving loan agreement with the Company and its subsidiaries, wetpaint.com, Inc. and Choose Digital Inc., pursuant to which the Company can borrow up to $1,500,000. On March 29, 2016, the Company borrowed an additional $112,000 under the Secured Revolving Loan. The Company has now borrowed the entire $1,500,000 under the Secured Revolving Loan, according to a Form 8-K report filed with the Securities and Exchange Commission. About DraftDay DraftDay Fantasy Sports Inc., formerly known as Viggle Inc., offers a high quality daily fantasy sports experience directly to consumers and to businesses desiring turnkey solutions to new revenue streams. DraftDay Fantasy Sports Inc. is the largest shareholder of DraftDay Gaming Group, with a 44% stake. Sportech owns 35%. By combining and capitalizing on the well-established operational business assets of DraftDay and Sportech, the new DraftDay is well-positioned to become a significant player in the explosive fantasy sports market. DraftDay has paid out over $30 million in prizes with increased player retention and brand loyalty. DraftDay Fantasy Sports also operates MyGuy and Viggle Football both of which offer real-time interactive participation with professional and college football games; Wetpaint, which offers entertainment and celebrity news; and Choose Digital, a digital marketplace platform that allows companies to incorporate digital content into existing rewards and loyalty programs in support of marketing and sales initiatives. As of Dec. 31, 2015, Draftday had $38.8 million in total assets, $60.08 million in total liabilities, $12.3 million in series C convertible redeemable preferred stock, and a $33.5 million total stockholders' deficit. "The Company is unlikely to generate significant revenue or earnings in the immediate or foreseeable future. The continuation of the Company as a going concern is dependent upon the continued financial support from its stockholders, the ability of the Company to obtain necessary equity or debt financing to continue development of its business and to generate revenue. Management intends to raise additional funds through equity and/or debt offerings until sustainable revenues are developed. There is no assurance such equity and/or debt offerings will be successful and therefore there is substantial doubt about the Company's ability to continue as a going concern within one year after the financial statements are issued," according to the Company's quarterly report for the period ended Dec. 31, 2015. DRAFTDAY FANTASY: Has $500,000 Financing Pact With CEO Affiliate ---------------------------------------------------------------- As disclosed in a Form 8-K report filed with the Securities and Exchange Commission, Sillerman Investment Company VI LLC, an affiliate of Robert F.X. Sillerman, the executive chairman and chief executive officer of DraftDay Fantasy Sports, Inc. entered into a secured revolving line of credit agreement with the Company and its subsidiaries, wetpaint.com, Inc. and Choose Digital Inc., pursuant to which the Company can borrow up to $500,000. The Secured Revolving Line of Credit, entered on March 29, 2016, bears interest at the rate of 12% per annum. In connection with the Secured Revolving Line of Credit, the Company and the Subsidiaries have entered into a Security Agreement with SIC VI, under which the Company and the Subsidiaries have granted SIC VI a continuing security interest in all assets of the Company and the Subsidiaries, with the exception of the Company's interest in DraftDay Gaming Group, Inc. The Company intends to use the proceeds from the Secured Revolving Line of Credit to fund working capital requirements and for general corporate purposes in accordance with a budget to be agreed upon by SIC VI and the Company. $88,000 has been advanced thereunder. Because Mr. Sillerman is a director, executive officer and greater than 10% stockholder of the Company, a majority of the Company's independent directors approved the transaction. About DraftDay DraftDay Fantasy Sports Inc., formerly known as Viggle Inc., offers a high quality daily fantasy sports experience directly to consumers and to businesses desiring turnkey solutions to new revenue streams. DraftDay Fantasy Sports Inc. is the largest shareholder of DraftDay Gaming Group, with a 44% stake. Sportech owns 35%. By combining and capitalizing on the well-established operational business assets of DraftDay and Sportech, the new DraftDay is well-positioned to become a significant player in the explosive fantasy sports market. DraftDay has paid out over $30 million in prizes with increased player retention and brand loyalty. DraftDay Fantasy Sports also operates MyGuy and Viggle Football both of which offer real-time interactive participation with professional and college football games; Wetpaint, which offers entertainment and celebrity news; and Choose Digital, a digital marketplace platform that allows companies to incorporate digital content into existing rewards and loyalty programs in support of marketing and sales initiatives. As of Dec. 31, 2015, Draftday had $38.81 million in total assets, $60.08 million in total liabilities, $12.28 million in series C convertible redeemable preferred stock, and a $33.54 million total stockholders' deficit. "The Company is unlikely to generate significant revenue or earnings in the immediate or foreseeable future. The continuation of the Company as a going concern is dependent upon the continued financial support from its stockholders, the ability of the Company to obtain necessary equity or debt financing to continue development of its business and to generate revenue. Management intends to raise additional funds through equity and/or debt offerings until sustainable revenues are developed. There is no assurance such equity and/or debt offerings will be successful and therefore there is substantial doubt about the Company's ability to continue as a going concern within one year after the financial statements are issued," according to the Company's quarterly report for the period ended Dec. 31, 2015. DRAFTDAY FANTASY: May Issue 150 Shares Under New CL-D Pref. Stock ----------------------------------------------------------------- DraftDay Fantasy Sports, Inc., created a new class of Series D Convertible Preferred Stock by filing a Certificate of Designations of the Series D Convertible Preferred Stock of the Company with the Secretary of State of the State of Delaware, according to a Form 8-K report filed with the Securities and Exchange Commission. The Company authorized the issuance of up to 150 shares of the Series D Convertible Preferred Stock. The rights, preferences, privileges and restrictions of the shares of Series D Convertible Preferred Stock and the qualifications, limitations and restrictions thereof are contained in the Series D Certificate of Designation and are summarized as follows: * The shares of Series D Convertible Preferred Stock have a stated value of $1,000 per share. * The holder of a share of Series D Convertible Preferred Stock will not be entitled to a liquidation preference or any dividends on such share. The shares of Series D Convertible Preferred Stock shall have no voting rights except as required by law. The consent of the holders of a majority of the shares of Series D Convertible Preferred Stock is necessary for the Company to amend the Series D Certificate of Designation. * Each share of Series D Convertible Preferred Stock is convertible, at the option of the holders, into shares of Company common stock at a at a ratio of 3,333.33 shares of Company common stock for each share of Series D Convertible Preferred Stock. The conversion price is not subject to antidilution protection. The Company may redeem any or all of the outstanding Series D Convertible Preferred Stock at any time at the then current Stated Value plus a redemption premium equal to the Stated Value multiplied by 10%. About DraftDay DraftDay Fantasy Sports Inc., formerly known as Viggle Inc., offers a high quality daily fantasy sports experience directly to consumers and to businesses desiring turnkey solutions to new revenue streams. DraftDay Fantasy Sports Inc. is the largest shareholder of DraftDay Gaming Group, with a 44% stake. Sportech owns 35%. By combining and capitalizing on the well-established operational business assets of DraftDay and Sportech, the new DraftDay is well-positioned to become a significant player in the explosive fantasy sports market. DraftDay has paid out over $30 million in prizes with increased player retention and brand loyalty. DraftDay Fantasy Sports also operates MyGuy and Viggle Football both of which offer real-time interactive participation with professional and college football games; Wetpaint, which offers entertainment and celebrity news; and Choose Digital, a digital marketplace platform that allows companies to incorporate digital content into existing rewards and loyalty programs in support of marketing and sales initiatives. As of Dec. 31, 2015, Draftday had $38.81 million in total assets, $60.08 million in total liabilities, $12.28 million in series C convertible redeemable preferred stock, and a $33.54 million total stockholders' deficit. "The Company is unlikely to generate significant revenue or earnings in the immediate or foreseeable future. The continuation of the Company as a going concern is dependent upon the continued financial support from its stockholders, the ability of the Company to obtain necessary equity or debt financing to continue development of its business and to generate revenue. Management intends to raise additional funds through equity and/or debt offerings until sustainable revenues are developed. There is no assurance such equity and/or debt offerings will be successful and therefore there is substantial doubt about the Company's ability to continue as a going concern within one year after the financial statements are issued," according to the Company's quarterly report for the period ended Dec. 31, 2015. DRAFTDAY FANTASY: Mulls Possible Reorganization ----------------------------------------------- As previously reported in DraftDay Fantasy Sports, Inc.'s quarterly report on Form 10-Q for the period ended Dec. 31, 2015, the Company's Board of Directors has formed a Special Committee of independent directors to explore strategic alternatives to enhance value, and that these alternatives could include, among others, possible joint ventures, strategic partnerships, marketing alliances, sale of all or some of the Company, or other possible transactions. The Company disclosed in a regulatory filing with the Securities and Exchange Commission that the Special Committee continues to study alternatives, including the possibility of reorganization. "The Company continues to experience liquidity issues and is in the process of attempting to settle debts with various trade and other creditors. There can be no assurances that the Company will be able to do so." About DraftDay DraftDay Fantasy Sports Inc., formerly known as Viggle Inc., offers a high quality daily fantasy sports experience directly to consumers and to businesses desiring turnkey solutions to new revenue streams. DraftDay Fantasy Sports Inc. is the largest shareholder of DraftDay Gaming Group, with a 44% stake. Sportech owns 35%. By combining and capitalizing on the well-established operational business assets of DraftDay and Sportech, the new DraftDay is well-positioned to become a significant player in the explosive fantasy sports market. DraftDay has paid out over $30 million in prizes with increased player retention and brand loyalty. DraftDay Fantasy Sports also operates MyGuy and Viggle Football both of which offer real-time interactive participation with professional and college football games; Wetpaint, which offers entertainment and celebrity news; and Choose Digital, a digital marketplace platform that allows companies to incorporate digital content into existing rewards and loyalty programs in support of marketing and sales initiatives. As of Dec. 31, 2015, Draftday had $38.8 million in total assets, $60.08 million in total liabilities, $12.3 million in series C convertible redeemable preferred stock, and a $33.5 million total stockholders' deficit. "The Company is unlikely to generate significant revenue or earnings in the immediate or foreseeable future. The continuation of the Company as a going concern is dependent upon the continued financial support from its stockholders, the ability of the Company to obtain necessary equity or debt financing to continue development of its business and to generate revenue. Management intends to raise additional funds through equity and/or debt offerings until sustainable revenues are developed. There is no assurance such equity and/or debt offerings will be successful and therefore there is substantial doubt about the Company's ability to continue as a going concern within one year after the financial statements are issued," according to the Company's quarterly report for the period ended Dec. 31, 2015. ELEPHANT TALK: Incurs $5 Million Net Loss in 2015 ------------------------------------------------- Elephant Talk Communications Corp. filed with the Securities and Exchange Commission its annual report on Form 10-K disclosing a net loss of $5 million on $31.01 million of revenues for the year ended Dec. 31, 2015, compared to a net loss of $21.86 million on $20.35 million of revenues for the year ended Dec. 31, 2014. As of Dec. 31, 2015, Elephant Talk had $25.4 million in total assets, $17.3 million in total liabilities and $8.05 million in total stockholders' equity. Squar Milner, LLP (formerly Squar Milner, Peterson, Miranda & Williamson, LLP), in Los Angeles, California, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2015, citing that the Company has suffered recurring losses from operations, has an accumulated deficit of $256 million and has negative working capital. This raises substantial doubt about the Company's ability to continue as a going concern, the auditors said. A full-text copy of the Form 10-K is available for free at: http://is.gd/KLId5b About Elephant Talk Lutz, Fla.-based Elephant Talk Communications, Inc. (OTC BB: ETAK) -- http://www.elephanttalk.com/-- is an international provider of business software and services to the telecommunications and financial services industry. ELITE ENERGY: Case Summary & 20 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: Elite Energy Engineering, LLC c/o W. Donald Gieseke, Trustee 18124 Wedge Pkwy., Ste. 518 Reno, NV 89511 Case No.: 16-50387 Chapter 11 Petition Date: March 31, 2016 Court: United States Bankruptcy Court District of Nevada (Reno) Judge: Hon. Bruce T. Beesley Debtor's Counsel: Alan R Smith, Esq. THE LAW OFFICES OF ALAN R. SMITH 505 Ridge St Reno, NV 89501 Tel: (775) 786-4579 E-mail: mail@asmithlaw.com Total Assets: $1.99 million Total Liabilities: $1.11 million The petition was signed by Donald W. Gieseke, trustee for member. A list of the Debtor's 20 largest unsecured creditors is available for free at http://bankrupt.com/misc/nvb16-50387.pdf EMEKS REALTY: Case Summary & 16 Unsecured Creditors --------------------------------------------------- Debtor: Emeks Realty, LLC 736 East 86th Street Brooklyn, NY 11236 Case No.: 16-20543 Nature of Business: Single Asset Real Estate Chapter 11 Petition Date: April 1, 2016 Court: United States Bankruptcy Court District of Connecticut (Hartford) Debtor's Counsel: Neil Crane, Esq. LAW OFFICES OF NEIL CRANE, LLC 2679 Whitney Avenue Hamden, CT 06518 Tel: (203) 230-2233 Fax: 203-230-8484 E-mail: neilcranecourt@neilcranelaw.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Anugha Onuoha, member manager. A list of the Debtor's 16 largest unsecured creditors is available for free at http://bankrupt.com/misc/ctb16-20543.pdf EMERALD OIL: April 19 Final Hearing on Equity Trading Protocol -------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware will hold a final hearing on April 19, 2016, at 12:00 p.m., (prevailing Eastern Time) to approve procedures for certain transfers of Emerald Oil Inc. common stock and preferred stock. Objections, if any, are due April 12, 2016, at 4:00 p.m. (prevailing Eastern Time). On March 24, 2016, the Court issued an interim order approving the Debtors' request. As reported by the Troubled Company Reporter, the Debtors sought approval from the Bankruptcy Court of certain notification and hearing procedures related to the transfers of Emerald Oil's existing common stock and existing series B voting preferred stock to ensure preservation of their net operating losses. A company generates NOLs if the operating expenses it has incurred exceed the revenues it has earned during a single tax year. A company may apply, or "carry forward," NOLs to reduce future tax payments in a tax year or years up to 20 years after the year in which the NOLs were generated. The Debtors estimate at as of Dec. 31, 2014, they have NOLs in the approximate amount of $101 million, translating to potential future tax savings of approximately $38 million. The NOLs are of significant value to the Debtors and their estates because such NOLs may be utilized by the Debtors to offset any taxable income generated by transactions consummated during these Chapter 11 cases. However, Section 382 of the IRC limits the amount of taxable income that can be offset by a corporation's NOLs in taxable years following an ownership change. Generally, an "ownership change" occurs if the percentage (by value) of the stock of a corporation owned by one or more 5 percent shareholders has increased by more than 50 percentage points over the lowest percentage of stock owned by such shareholders at any time during the three-year testing period ending on the date of the ownership change. To maximize the use of the NOLs and enhance recoveries for their stakeholders, the Debtors seek limited relief that will enable them to closely monitor certain transfers of Common Stock or Preferred Stock so as to be in a position to act expeditiously to prevent those transfers, if necessary, with the purpose of preserving the NOLs. Proposed Procedures (a) Any person or entity that has Beneficial Ownership of 4.5 percent or more of the Common Stock or Preferred Stock must serve and file a declaration of status as a substantial holder. (b) Prior to effectuating any transfer of the Common Stock or Preferred Stock that would (a) increase or decrease a Substantial Holder's Beneficial Ownership, or (b) would result in another person or entity becoming or ceasing to be a Substantial Holder, the parties to such transaction must serve and file a Declaration of Proposed Transfer. (c) The Debtors have 30 calendar days after receipt of a Declaration of Proposed Transfer to object to the proposed transaction. (d) If the Debtors timely object, the proposed transaction will remain ineffective pending a final and non-appealable order of the Court, unless the Debtors withdraw such objection. (e) If the Debtors do not object, the proposed transaction may proceed solely as described in the Declaration of Proposed Transfer. Any transfer of the Equity Securities in violation of the Procedures is null and void ab initio. About Emerald Oil Emerald is a Denver-based independent exploration and production company that is focused on acquiring acreage and developing wells in the Williston Basin of North Dakota. Emerald Oil, Inc., Emerald DB, LLC, Emerald NWB, LLC, Emerald WB LLC and EOX Marketing, LLC filed separate Chapter 11 bankruptcy petitions (Bankr. D. Del. Case Nos. 16-10704 to 16-10708) on March 22, 2016. Ryan Smith signed the petitions as chief financial officer. The Debtors have hired Kirkland & Ellis LLP and Kirkland & Ellis International LLP as general bankruptcy counsel, Pachulski Stang Ziehl & Jones LLP as local counsel, Intrepid Financial Partners, LLC as investment banker, Opportune LLP as restructuring advisor and Donlin Recano & Company, Inc., as claims and noticing agent. Judge Kevin Gross has been assigned the cases. ESCO MARINE: Gets Approval to Settle Dispute With Thalheimer ------------------------------------------------------------ Esco Marine Inc. received court approval for a deal that would resolve its dispute with Thalheimer Brothers Inc. and Thalheimer Brothers LLC. The deal, approved by Judge David Jones of the U.S. Bankruptcy Court for the Southern District of Texas, required Thalheimer Brothers to pay $85,000 to settle Esco Marine's claim. In exchange, Esco Marine was ordered to dismiss its lawsuit against the companies "with prejudice," according to court filings. Esco Marine sued the companies in September last year after the latter questioned the validity of the account receivable owed to the Texas-based ship dismantler in the amount of $134,215. About ESCO Marine ESCO Marine, Inc., and four affiliates sought Chapter 11 Bankruptcy protection in Corpus Christi, Texas (Bankr. S.D. Tex.) on March 7, 2015. The cases are assigned to Judge Richard S. Schmidt. The Court approved the joint administration of the Debtors' Chapter 11 cases under ESCO Marine, Inc., Case No. 15-20107. ESCO Metals, LLC, ESCO Shredding, LLC, Texas Best Recycling, LLC, and Texas Best Equipment LLC are affiliates of ESCO Marine. ESCO Marine is the operating parent company. The Debtors have tapped Roderick Glen Ayers, Jr., Esq., at Langley Banack Inc., in San Antonio, as counsel. The Debtors tapped AP Services LLC to designate a chief restructuring officer, and Duff & Phelps Canada Restructuring, Inc. as financial advisors. The Debtor disclosed total assets of $85,908,515 and total liabilities of $93,808,107. Secured creditor Callidus Capital Corporation is represented by Nathaniel Peter Holzer, Esq., at Jordan, Hyden, Culbreth & Holzer, P.C. On July 30, 2015, the U.S. Bankruptcy Court for the Southern District of Texas approved a credit bid by Callidus Capital Corp. that allowed the Canadian company to acquire substantially all of the Debtors' assets, which include machinery and equipment, real property leasehold interests and inventory. EXTREME PLASTICS PLUS: Proposes May 23 Deadline for Filing Claims ----------------------------------------------------------------- Extreme Plastics Plus Inc. has filed a motion seeking court approval to establish May 23, 2016, as the deadline for creditors to file their pre-bankruptcy claims. This deadline is called a "bar date" because it means that creditors who come forward after that date may be "barred" from ever filing a claim against the company. In the same filing, the company also asked for court approval to establish Aug. 1, 2016, as the deadline for governmental units to file their pre-bankruptcy claims. The motion is on U.S. Bankruptcy Judge Christopher Sontchi's calendar for May 2. About Extreme Plastics Founded in 2007, privately-held Extreme Plastics Plus, Inc., operates an environmental containment business specializing in providing environmental lining, above ground storage tanks, composite rig mats, secondary steel wall containment systems, and closed loop solids control services, primarily for the oil and gas industry. Extreme Plastics has six facilities in Fairmont, West Virginia, Tunkhannock, Pennsylvania, St. Clairsville, Ohio, Moore, Texas, Odessa, Texas, and Oklahoma City, Oklahoma. The stock of Extreme Plastics is held entirely by EPP Intermediate Holdings, Inc. The stock of EPP Intermediate is held entirely by EPP Holding Company, LLC, a non-debtor. Extreme Plastics, and affiliate EPP Intermediate Holdings, Inc., sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 16-10221) on Jan. 31, 2016, as the ongoing decline in the price of oil and natural gas negatively impacted demand of the Debtors' services. Extreme Plastics estimated $10 million to $50 million in assets and $50 million to $100 million in debt. EPP Intermediate estimated $1 million to $10 million in assets and $50 million to $100 million in debt. As of the Petition Date, Extreme Plastics owes $49.5 million under a secured facility provided by lenders led by Citizens Bank of Pennsylvania, as agent. The facility is secured by a lien in substantially all of the Debtors' assets, as well as a pledge of 100% of the equity in Extreme Plastics and EPP Intermediate. The Debtors tapped Sullivan Hazeltine Allinson LLC as attorneys and Epiq Bankruptcy Solutions, LLC, as claims and noticing agent. The U.S. Trustee has appointed five members to the Official Committee of Unsecured Creditors. The Committee selected Reed Smith LLP as counsel. FANNIE MAE & FREDDIE MAC: A Third Look at the Implicit Guarantee ---------------------------------------------------------------- We reported in yesterday's newsletter, Fannie Mae and Freddie Mac preferred shareholder Joshua J. Angel appeared in In re Third Amendment Litigation, MDL No. 2713 (J.P.M.L.), last week, with a collection of government documents supporting his contention that: (A) the government's implicit guarantee of preferred shares has always been in place; (B) that implicit guarantee did not change when the GSEs were placed into conservatorship; and (C) the guaranty is still in place today. It's important to understand that Mr. Angel does not challenge or contest the imposition of the conservatorship in 2008 nor does he want to unwind the Net Worth Sweep imposed in 2012. The conservatorship and Third Amendment make no difference to Mr. Angel. He wants the government to honor its promises. He wants Fannie and Freddie's directors to do their jobs and fulfill their fiduciary duties to preferred shareholders, and he's preparing to sue them individually if they don't. Today, we step through the documents Mr. Angel's unearthed. Mr. Angel's starting point is a Board of Governors of the Federal Reserve System Internal Discussion Paper (IFDP 1045) dated Mar. 2012. That paper -- available at http://goo.gl/O26TsE-- explores how hundreds of U.S. banks owned GSE preferred stock and that they were allowed to treat those riskless securities as Tier I capital. Without the government's implicit guarantee of the GSEs' preferred stock, the Tier I classification would be impossible. Mr. Angel then turns to the GSEs' sale of $22 billion of preferred stock within a year of entering conservatorship and a sale of $4.8 billion less than four months prior to entering conservatorship. But for the government's implicit guarantee, the GSEs' ability to sell, at par, twice as much preferred stock as it had outstanding a year earlier would have been impossible. Mr. Angel examines price movements of Fannie Mae's Series T Preferred shares as the housing finance giant marched toward conservatorship. The securities maintained 60% of their value as Treasury Secretary Paulson announced the conservatorship plan -- prices reflecting the government's implicit guarantee of GSE preferred securities. Mr. Angel observes that after Fannie Mae entered conservatorship, it timely made Treasury-directed payments totaling $413 million to certain holders of its preferred shares. This is the "Animal Farm equality, where all preferred shareholders are equal, but some are more equal than others," to which Mr. Angel refers and was mentioned in yesterday's newsletter. Mr. Angel also points to a Treasury-issued news release -- see https://goo.gl/ZO00N4 -- dated Sept. 11, 2008, that affirmed the implicit guarantee when it said, "[T]he U.S. Government stands behind the preferred stock purchase agreements and will honor its commitments. Contracts are respected in this country as a fundamental part of rule of law." As every corporate restructuring professional knows, the government's warrants for 79.9% of the GSEs' common stock have no value whatsoever unless and until the GSEs honor their obligations to the companies' pre-conservatorship preferred shareholders. No rational person at the U.S. Treasury Department would allow those warrants to expire out of the money when there are a handful of tried and true ways to realize hundreds of millions of dollars of value on their account. Mr. Angel's decades of corporate restructuring experience tell him there's significant economic value in the GSEs' preferred securities and speculative Fifth Amendment taking value in the GSEs' common stock. And Mr. Angel isn't speaking hypothetically or otherwise pontificating. He has his own money invested in Fannie and Freddie's preferred securities and he expects the U.S. government to honor its contractual obligations. On Mar. 1, 2016, Mr. Angel sent letters to each of Fannie and Freddie's directors urging them to "seek and obtain clarification from outside counsel regarding your duties and liabilities . . . and to begin taking steps to behave as an informed, active board." Mr. Angel's received nothing in response -- not even FHFA general counsel's one-page form letter saying HERA prohibits shareholder lawsuits. At http://gselinks.com/pdf/Govt_Perfidy_Angel.pdfis a copy of Mr. Angel's paper entitled "Government Perfidy and Mismanagement of the GSEs in Conservatorship" released in late-Feb. 2016 and provided by Mr. Angel to each current GSE director on Mar. 1. As we said yesterday, it is interesting to us that Mr. Angel is the only party focused on the government's implicit guarantee of the GSEs' preferred shares. But one of our readers told us we shouldn't be surprised because Mr. Angel is the first corporate restructuring professional to arrive at a courthouse. Mr. Angel is represented by: Hanh V. Huynh, Esq. HERRICK, FEINSTEIN LLP 2 Park Avenue New York, NY 10016 Telephone: (212) 592-1482 E-mail: hhuynh@herrick.com FINJAN HOLDINGS: Provides Update on Challenges to Its Patents ------------------------------------------------------------- Finjan Holdings, Inc. announced that on March 29, 2016, the Patent Trial and Appeal Board for the United States Patent & Trademark Office ruled on three additional petitions for Inter Partes Review by Palo Alto Networks. Of the 13 petitions for IPR by Palo Alto Networks, the PTAB has ruled on five to date. Regarding IPR2015-02001 and IPR2016-00157, both of which relate to Finjan's U.S. Patent No. 9,225,408 ("the '408 Patent"), the PTAB consolidated the petitions and granted institution of IPR of Claims 1, 3-7, 9, 12-16, 18-23, 29, and 35. Regarding IPR2015-01974, which relates to Finjan's U.S. Patent No. 7,647,633 ("the '633 Patent"), the PTAB granted partial institution of IPR of Claims 14 and 19. Regarding IPR2015-01999, which relates to Finjan's U.S. Patent No. 7,058,822 ("the '822 Patent"), the PTAB denied institution of IPR for three reasons: the '822 Patent had already successfully undergone reexamination proceedings and appeal; the subject matter cited in the prior art references by Palo Alto Networks had been "thoroughly" considered in the reexamination proceedings; and the burden and expense to Finjan in having to defend another challenge of the '822 Patent based on substantially the same prior art or arguments already considered in other proceedings and on appeal. As previously disclosed, the PTAB earlier ruled on two Palo Alto Networks' petitions for IPRs (IPR2015-01547 and IPR2015-02000). Reference to previous decisions can be found on Finjan's Press Release site. Summary of Palo Alto Networks' IPR challenges against Finjan Patents: * '154 Patent - IPR2015-01547: instituted * '731 Patent - IPR2015-02000: denied * '408 Patent - IPR2015-02001/ IPR2016-00157: consolidated & instituted * '633 Patent - IPR2015-01974: partially instituted * '822 Patent - IPR2015-01999: denied "We respect the PTAB's decisions and are especially pleased with its acknowledgement that repeated efforts to challenge our patents is burdensome and expensive to Finjan, and that the PTAB's resources should not be expended revisiting previous unsuccessful challenges by Palo Alto Networks and others," commented Julie Mar-Spinola, Finjan Holding's Chief IP Officer. "Further, we are prepared to prove that each of the patent claims subject to IPR are valid in light of the cited prior art in due course." Tally of results to IPR challenges against Finjan Patents: a total of 18 IPR challenges by 3 defendants, 3 petitions instituted, 1 petition partially instituted, 14 petitions denied. Final summary of Symantec IPR challenges against Finjan Patents: '154 Patent - IPR2015-01547: denied '182 Patent - IPR2015-01548: denied '289 Patent - IPR2015-01552: denied '299 Patent - IPR2015-01549: denied '494 Patent - IPR2015-01892: 3 grounds denied, 1 instituted '494 Patent - IPR2015-01897: denied '844 Patent - IPR2015-01894: denied '926 Patent - IPR2015-01893: denied '926 Patent - IPR2015-01895: denied '996 Patent - IPR2015-01545: denied '996 Patent - IPR2015-01546: denied Final summary of Sophos IPR challenges against Finjan Patents: * US Pat. No. 8,677,494 ('494 Patent) - IPR2015-01022: denied * US Pat. No. 7,613,926 (‘926 Patent) - IPR2015-00907: denied Finjan also has pending infringement lawsuits against FireEye, Inc., Proofpoint Inc., Symantec Corp., Sophos, Inc., and Blue Coat Systems, Inc. relating to, collectively, more than 20 patents in the Finjan portfolio. The court dockets for the foregoing cases are publicly available on the Public Access to Court Electronic Records (PACER) website, www.pacer.gov, which is operated by the Administrative Office of the U.S. Courts. 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 Holdings reported a net loss of $12.60 million in 2015, a net loss of $10.47 million in 2014 and a net loss of $6.07 million in 2013. As of Dec. 31, 2015, Finjan had $9.20 million in total assets, $2.85 million in total liabilities and $6.34 million in total stockholders' equity. FORESIGHT ENERGY: Further Extends Forbearance Pacts to April 5 -------------------------------------------------------------- As disclosed in a regulatory filing with the Securities and Exchange Commission, Foresight Energy LLC and Foresight Energy Finance Corporation, together with Foresight Energy LP and certain other subsidiaries of Foresight Energy LP, again extended the term of the existing forbearance agreement that was entered into on Dec. 18, 2015, with certain holders of the Issuers' 7.875% Senior Notes due 2021. As a result of the extension, the forbearance period runs through April 5, 2016, unless further extended by the Consenting Noteholders in their sole discretion or unless earlier terminated in accordance with its terms. Foresight Receivables LLC, together with the Partnership, extended the term of the forbearance agreement that was entered into on Jan. 27, 2016, with certain lenders under Foresight Receivables' receivables financing agreement. As a result of the extension, the forbearance period runs through April 5, 2016, unless further extended by the Consenting Lenders in their sole discretion or unless earlier terminated in accordance with its terms. The extensions are intended to provide additional opportunity to engage in discussions and negotiations with the holders of the Notes and the Company's secured lenders. About Foresight Energy Foresight Energy mines and markets coal from reserves and operations located exclusively in the Illinois Basin. As of Dec. 31, 2015, the Company has invested over $2.3 billion to construct state-of-the-art, low-cost and highly productive mining operations and related transportation infrastructure. The Company controls over 3 billion tons of proven and probable coal in the state of Illinois, which, in addition to making the Company one of the largest reserve holders in the United States, provides organic growth opportunities. The Company's reserves consist principally of three large contiguous blocks of uniform, thick, high heat content (high Btu) thermal coal which is ideal for highly productive longwall operations. Thermal coal is used by power plants and industrial steam boilers to produce electricity or process steam. Foresight Energy reported a net loss attributable to limited partner units of $39.47 million on $984.85 million of total revenues for the year ended Dec. 31, 2015, compared to net income attributable to limited partner units of $70.19 million on $1.10 billion of total revenues for the year ended Dec. 31, 2014. As of Dec. 31, 2015, Foresight had $1.83 billion in total assets, $1.81 billion in total liabilities and $18.88 million in total partners' capital. Ernst & Young LLP, in St. Louis, Missouri, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2015, noting that the Partnership is in default of certain provisions of its long-term debt and capital lease obligations, resulting in a working capital deficit as of Dec. 31, 2015. These conditions raise substantial doubt about the Partnership's ability to continue as a going concern. * * * The Troubled Company Reporter on March 22, 2016, reported that Standard & Poor's Ratings Services said it lowered its corporate rating on St. Louis-based Foresight Energy L.P. to 'D' from 'CCC-'. As reported by the TCR on March 29, 2016, Moody's Investors Service downgraded all ratings of Foresight Energy, LLC including the corporate family rating to Caa3 from Caa1. FOREVERGREEN WORLDWIDE: Incurs $2.62 Million Net Loss in 2015 ------------------------------------------------------------- Forevergreen Worldwide Corporation filed with the Securities and Exchange Commission its annual report on Form 10-K reporting a net loss of $2.62 million on $67.1 million of net total revenues for the year ended Dec. 31, 2015, compared to net income of $1.02 million on $58.3 million of net total revenues for the year ended Dec. 31, 2014. As of Dec. 31, 2015, ForeverGreen had $7.78 million in total assets, $9.18 million in total liabilities and a total stockholders' deficit of $1.40 million. Sadler, Gibb & Associates, LLC, in Salt Lake City, UT, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2015, citing that the Company has suffered net losses and has accumulated a significant deficit. These factors raise substantial doubt about its ability to continue as a going concern. A full-text copy of the Form 10-K is available for free at: http://is.gd/qHXMyZ About ForeverGreen Worldwide Orem, Utah-based ForeverGreen Worldwide Corporation is a holding company that operates through its wholly owned subsidiary, ForeverGreen International, LLC. The Company's product philosophy is to develop, manufacture and market the best of science and nature through innovative formulations as it produces and manufactures a wide array of whole foods, nutritional supplements, personal care products and essential oils. FOUNDATION HEALTHCARE: Reports $5.2 Million Net Income for 2015 --------------------------------------------------------------- Foundation Healthcare, Inc. filed with the Securities and Exchange Commission its annual report on Form 10-K disclosing net income attributable to the Company's common stock of $5.19 million on $126.13 million of revenues for the year ended Dec. 31, 2015, compared to a net loss attributable to the Company's common stock of $2.09 million on $101.85 million of revenues for the year ended Dec. 31, 2014. As of Dec. 31, 2015, Foundation Healthcare had $119.91 million in total assets, $119.88 million in total liabilities, $6.96 million in preferred noncontrolling interest and a total deficit of $6.93 million. "On December 31, 2015, we completed a refinancing of substantially all of our outstanding indebtedness through the execution of a Credit Agreement, or the TCB Credit Facility, with Texas Capital Bank, National Association, or TCB. The TCB Credit Facility provides for a term loan in the principal amount of $28.4 million, referred to as the Term Loan, and a revolving line of credit of $12.5 million, referred to as the Revolving Loan, for total principal of $40.9 million. We believe our cash on hand, the $1.0 million available on the Revolving Loan and projected cash flow from operations will provide us enough liquidity to meet our cash requirements over the next 12 months. However, if our cash flows from operations do not meet or exceed our projections, we may need to raise additional funds through debt or equity financings," the Company stated in the report. A full-text copy of the Form 10-K is available for free at: http://is.gd/BNISgs About Foundation Healthcare Oklahoma-based Foundation Healthcare is a healthcare services company primarily focused on owning controlling interests in surgical hospitals and the inclusion of ancillary service lines. The Company currently owns controlling and noncontrolling interests in surgical hospitals located in Texas. The Company also owns noncontrolling interests in ambulatory surgery centers ("ASCs") located in Texas, Oklahoma, Pennsylvania, New Jersey, Maryland and Ohio. Additionally, the Company provides sleep testing management services to various rural hospitals in Iowa, Minnesota, Missouri, Nebraska and South Dakota under management contracts with the hospitals. The Company provides management services to a majority of its Affiliates under the terms of various management agreements. Prior to Dec. 2, 2013, the Company's name was Graymark Healthcare, Inc. FREEDOM COMMUNICATIONS: Gets More Time to Decide on Leases ---------------------------------------------------------- U.S. Bankruptcy Judge Mark Wallace has given Freedom Communications Inc. until May 29, 2016, to either assume or reject unexpired leases of nonresidential real property. 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. FRONTIER COMMUNICATIONS: Fitch Affirms 'BB' Issuer Default Rating ----------------------------------------------------------------- Fitch Ratings has affirmed Frontier Communications Corporation's (Frontier; NYSE: FTR) Issuer Default Rating (IDR) at 'BB' following the close of the acquisition of certain wireline properties from Verizon Communications Inc. (Verizon) on April 1, 2016. The Rating Outlook for Frontier and its subsidiaries remains Negative. In addition to the affirmation of the IDR, Fitch takes the following actions: Frontier Communications Corp. -- IDR affirmed at 'BB'; -- The $1.5 billion senior secured delayed draw term loan due 2021 rated 'BB+/RR2'; -- The $750 million revolving credit facility due 2018 upgraded to 'BB+/RR2' from 'BB/RR4' due to a security pledge granted on the initial draw of the $1.5 billion senior secured delayed draw term loan; -- Senior unsecured notes and debentures affirmed at 'BB/RR4'. Upon the initial draw of the $1.5 billion senior secured term loan, Frontier's $750 million unsecured revolving credit facility and other unsecured term loans became equally and ratably secured with the delayed draw term loan. Combined with other secured debt, the pledges introduced approximately $2.3 billion of secured debt into the capital structure, excluding potential drawings on the currently undrawn revolving credit facility. Frontier also has approximately $850 million of operating telephone subsidiary debt (of this amount, $100 million is secured, the remainder is unsecured) structurally senior to all parent debt. The RR2 recovery rating assigned to the secured revolver and senior secured delayed draw term loan reflects the potential limitations in value of Frontier North as collateral for the secured revolver and secured term loans, including potential revolver drawings (per Fitch's approach), if cash flows are stressed. In addition, Frontier North has $200 million of unsecured debt that is structurally senior to the equity pledge providing security to the parent secured debt. The following rating actions have been taken on the three former Verizon subsidiaries acquired by Frontier as follows: Verizon California Verizon Florida -- IDR downgraded to 'BB' from 'A-'; -- Senior unsecured debt downgraded to 'BB+/RR1' from 'A-'. GTE Southwest -- IDR downgraded to 'BB' from 'A-'; -- First mortgage bonds downgraded to 'BB+/RR1' from 'A-'. The Rating Watch Negative has been removed from these three subsidiaries. The Rating Outlook is Negative. Frontier's Rating Outlook is Negative, as Fitch does not expect Frontier to reach Fitch's net leverage threshold of 3.75x for the current rating until approximately the end of 2017. KEY RATING DRIVERS Improved Scale: On April 1, 2016, Frontier acquired certain wireline operations in California, Texas and Florida from Verizon Communications Inc. for approximately $10.54 billion, including $600 million of assumed debt. The acquisition materially increases Frontier's scale, as Fitch expects Frontier's consolidated revenues in 2016 to rise to approximately $10 billion from $5.6 billion in 2015. Strengthening FCF: Frontier expects costs to be reduced by more than $600 million in the first year after close (Fitch has assumed $500 million), with savings rising to $700 million annually by the third year. Fitch believes the acquisition of the Verizon properties will lead to improved free cash flow (FCF, defined as net cash provided by operating activities less capital spending and dividends) over time. The acquisition is not expected to require material additional capital spending given past network upgrades by Verizon. Leverage Elevated for Rating: Excluding $6.6 billion of senior unsecured notes issued in 2015 to fund the Verizon transaction, gross leverage was 4.1x at Dec. 31, 2015. Frontier will need additional time to deleverage, after incorporating the Verizon assets into its operations, and Fitch estimates leverage will be below 3.75x by the end of 2017. KEY ASSUMPTIONS Fitch's key assumptions within the rating case for the issuer include: -- In 2016, Frontier's consolidated revenues are expected to rise to approximately $10 billion owing to the expected close of the Verizon line acquisition on April 1; -- 2016 EBITDA margins are in the low 40 percent range. Fitch has conservatively assumed synergies for the first year following the close of the transaction will be $500 million, slightly less than the expectations by Frontier of day one synergies of more than $600 million. While there is some risk that costs could vary around this metric, the synergies represent costs allocated to these properties by Verizon that will no longer occur as operations are flash cut to Frontier's systems. Frontier has achieved its synergy targets in previous recent transactions; -- Capex is expected to be in the range of $1.6 billion to $1.7 billion in 2016. Fitch's assumptions reflect capital spending related to operations in the range of 12% to 12.5% of revenues for legacy Frontier and the Verizon properties, with additional capital spending for CAF II and integration; -- Other than the $1.5 billion drawn on the senior secured term loan to complete the Verizon transaction, Fitch forecasts only a modest debt issuance in 2017 to maintain cash balances of approximately $500 million during the 2016 to 2018 period. RATING SENSITIVITIES The Outlook could be revised to Stable if in Fitch's view Frontier is able to sustain post-transaction net leverage at or below 3.75x. In early 2016, Fitch revised the net leverage threshold down to 3.75x from 4.0x owing to the continued secular challenges faced by the wireline industry. Business services revenue has been slower than Fitch's previously expected levels of GDP-type growth owing to factors such as aggressive cable operator competition and slow economic growth. The rating could be downgraded if net leverage rises above 3.75x due to a number of factors, including lower synergy realization or assumptions, and competitive pressures on EBITDA. Revenue pressures in the wireline industry have moderated, but a return to mid-single digit declines in revenue, while not expected, would lead to a negative action. LIQUIDITY Manageable Maturities: Excluding the draw on the senior secured term loan related to the Verizon transaction financing, Frontier is not expected to need to access the capital markets to refinance maturing debt through at least 2016. Existing principal repayments amount to approximately $384 million and $646 million during 2016 and 2017, respectively. Liquidity Solid: Supporting the rating is Frontier's ample liquidity, which is derived from its cash balances and its $750 million revolving credit facility. At Dec. 31, Frontier had $936 million in balance sheet cash, excluding $8.44 billion of restricted cash which was released upon the closing of the Verizon transaction to fund a portion of the purchase price. Credit Facility: The $750 million senior secured revolving credit facility is in place until May 2018. The facility is available for general corporate purposes but may not be used to fund dividend payments. The main financial covenant in Frontier's secured facilities requires the maintenance of a net debt-to-EBITDA level of 4.5x or less during the entire period. Net debt is defined as total debt less cash exceeding $50 million. FULL LIST OF RATING ACTIONS Fitch has affirmed the ratings and maintained the Negative Outlook as follows: Frontier Communications Corporation -- IDR at 'BB'; -- Senior unsecured notes and debentures at 'BB/RR4'. Frontier North Inc. -- IDR at 'BB'; -- $200 million unsecured notes due 2028 at 'BB+/RR1'. Frontier West Virginia -- IDR at 'BB'; -- $50 million private placement notes due 2029 at 'BB+/RR1'. In addition, Fitch has taken the following actions: Frontier Communications Corp. -- The $1.5 billion senior secured delayed draw term loan due 2021 rated 'BB+/RR2'; -- The $750 million revolving credit facility due 2018 has been upgraded to 'BB+/RR2' from 'BB/RR4' due to a security pledge granted on the initial draw of the $1.5 billion senior secured delayed draw term loan. Verizon California Verizon Florida -- IDR downgraded to 'BB' from 'A-'; -- Senior unsecured debentures downgraded to 'BB+/RR1' from 'A-'. GTE Southwest -- IDR downgraded to 'BB' from 'A-'; -- First mortgage bonds downgraded to 'BB+/RR1' from 'A-'. The Rating Watch Negative has been removed from these three subsidiaries. The Rating Outlook is Negative. FUEL PERFORMANCE: Incurs $1.92 Million Net Loss in 2015 ------------------------------------------------------- Fuel Performance Solutions, Inc., filed with the Securities and Exchange Commission its annual report on Form 10-K disclosing a net loss of $1.92 million on $456,000 of net revenues for the year ended Dec. 31, 2015, compared to a net loss of $1.65 million on $1.72 million of net revenues for the year ended Dec. 31, 2014. As of Dec. 31, 2015, Fuel Performance had $2.35 million in total assets, $4.02 million in total liabilities and a total stockholders' deficit of $1.67 million. MaloneBailey, LLP, in Houston, Texas, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2015, citing that the Company has suffered recurring loss from operations and has a working capital deficit. This factor raises substantial doubt about the Company's ability to continue as a going concern. A full-text copy of the Form 10-K is available for free at: http://is.gd/bnr0Jt About Fuel Performance Fuel Performance Solutions, Inc., was incorporated in Nevada on April 9, 1996, by a team of individuals who sought to address the challenges of reducing harmful emissions while at the same time improving the operating performance of internal combustion engines, especially with respect to fuel economy and engine cleanliness. After the Company's incorporation, its initial focus was product research and development, but over the past few years, the Company's efforts have been directed to commercializing its product slate, primarily DiesoLiFTTM and the PerfoLiFTTM BD- Series, for use with diesel fuel and bio-diesel fuel blends, by focusing on marketing, sales and distribution efforts in conjunction with our distribution partners. On Feb. 5, 2014, the Company changed its name from International Fuel Technology, Inc., to Fuel Performance Solutions, Inc. GASTAR EXPLORATION: Provides Operational Update ----------------------------------------------- As previously announced, Gastar Exploration Inc. entered into an agreement with an affiliate of Tug Hill Inc. to sell substantially all of its assets and proved reserves as well as a significant portion of its undeveloped acreage in the Appalachian Basin for $80.0 million, subject to certain adjustments and customary closing conditions, including certain lessor consents to assign. Due to a delay in obtaining one required lessor consent, the transaction is now expected to close on or before April 8, 2016. The effective date remains Jan. 1, 2016, and proceeds will be used to reduce borrowings under Gastar's revolving credit facility. Gastar also reported updated production data from its Deep River 30-1H well, its first operated test well of the STACK formation Meramec Shale play in Kingfisher County, Oklahoma. The Deep River 30-1H produced for the first 90 days of post-peak production at a gross average sales rate of 713 barrels of oil equivalent ("Boe") per day (61% oil), which was in-line with initial production rates in the independent reservoir engineers' estimated ultimate recovery of 705 MBoe, with oil comprising 50%of total oil equivalent volumes on a wet gas basis. Gastar has a 100% working (80% net revenue) interest in the well. The Company also announced that it has completed its second Meramec Shale well, the Holiday Road 2-1H, with 34 frack stages using approximately 12 million pounds of proppant. The Holiday Road 2-1H is also located in Kingfisher County and has a lateral length of 4,300 feet. Initial flow back is expected to commence in the next two weeks. About Gastar Exploration Gastar Exploration Inc. is an independent energy company engaged in the exploration, development and production of oil, condensate, natural gas and natural gas liquids in the United States. Gastar's principal business activities include the identification, acquisition, and subsequent exploration and development of oil and natural gas properties with an emphasis on unconventional reserves, such as shale resource plays. In Oklahoma, Gastar is developing the primarily oil-bearing reservoirs of the Hunton Limestone horizontal play and is testing other prospective formations on the same acreage, including the Meramec Shale and the Woodford Shale, which is referred to as the STACK Play and emerging prospective plays in the shallow Oswego formation and in the Osage formation, a deeper bench of the Mississippi Lime located below the Meramec Shale. In West Virginia, Gastar has developed liquids-rich natural gas in the Marcellus Shale and has drilled and completed two successful dry gas Utica Shale/Point Pleasant wells on its acreage. Gastar has entered into a definitive PSA to sell substantially all of its assets and proved reserves and a significant portion of its undeveloped acreage in the Appalachian Basin. For more information, visit Gastar's website at www.gastar.com. Gastar Exploration reported a net loss attributable to common stockholders of $473.98 million for the year ended Dec. 31, 2015, compared to net income attributable to common stockholders of $36.52 million for the year ended Dec. 31, 2014. As of Dec. 31, 2015, Gastar had $430.86 million in total assets, $551.05 million in total liabilities and a total stockholders' deficit of 120.18 million. * * * As reported by the TCR on March 15, 2016, Standard & Poor's Ratings Services lowered its corporate credit rating on U.S.-based oil and gas exploration and production (E&P) company Gastar Exploration Inc. to 'CCC-' from 'CCC+'. The downgrade follows Gastar's announcement that it had just $29 million of cash on hand and a fully drawn revolver. The company's borrowing base current stands at $180 million, but will be reduced to $100 million at the earlier of the close of the Appalachian asset sale or April 10, 2016. Proceeds from the Appalachian asset sale are expected to be $80 million. GELTECH SOLUTIONS: Files Transition Report on Form 10K-T -------------------------------------------------------- GelTech Solutions, Inc., filed with the Securities and Exchange Commission its annual report on Form 10-K for the transition period from July 1, 2015, to Dec. 31, 2015. The Company reported a net loss of $2.63 million on $776,607 of sales for the six months ended Dec. 31, 2015, compared to a net loss of $2.12 million on $266,762 of sales for the same period in 2014. For the year ended June 30, 2015, the Company reported a net loss of $5.51 million on $800,365 of sales compared to a net loss of $7.11 million on $814,587 of sales for the year ended June 30, 2014. As of Dec. 31, 2015, Geltech had $1.96 million in total assets, $6.44 million in total liabilities and a total stockholders' deficit of $4.48 million. "Our ability to continue as a going concern is in doubt absent obtaining adequate new debt or equity financing and achieving sufficient sales levels. "We anticipate these losses will continue for the foreseeable future. We have not reached a profitable level of operations, which raises substantial doubt about our ability to continue as a going concern. Since January 2014, we have received $5,365,000 from our principal shareholder in consideration for common stock and warrants and advances against a secured convertible line of credit facility. These funds have enabled us to sustain our operations. Our continued existence is dependent upon our achieving sufficient sales levels of our products including FireIce, EMFIDS and Soil2O "Dust Control" and obtaining adequate financing," the Company stated in the report. The Company's auditors Salberg & Company, P.A., in Boca Raton, Florida, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2015, citing that the Company has a net loss and net cash used in operating activities in of $2,638,580 and $2,146,501, respectively, for the six months ended Dec. 31, 2015, and has an accumulated deficit and stockholders' deficit of $43,285,883 and $4,482,416, respectively, at Dec. 31, 2015. These matters raise substantial doubt about the Company's ability to continue as a going concern. A full-text copy of the Form 10-KT is available for free at: http://is.gd/tUKitS About GelTech Jupiter, Fla.-based GelTech Solutions. Inc., is a Delaware corporation organized in 2006. The Company markets four products: (1) FireIce(R), a water soluble fire retardant used to protect firefighters, structures and wildlands; (2) Soil2O(R) 'Dust Control', its new application which is used for dust mitigation in the aggregate, road construction, mining, as well as, other industries that deal with daily dust control issues; (3) Soil2O(R), a product which reduces the use of water and is primarily marketed to golf courses, commercial landscapers and the agriculture market; and (4) FireIce(R) Home Defense Unit, a system for applying FireIce(R) to structures to protect them from wildfires. GENIUS BRANDS: Incurs $3.48 Million Net Loss in 2015 ---------------------------------------------------- Genius Brands International, Inc., filed with the Securities and Exchange Commission its annual report on Form 10-K disclosing a net loss of $3.48 million on $907,983 of total revenues for the year ended Dec. 31, 2015, compared to a net loss of $3.72 million on $926,000 of total revenues for the year ended Dec. 31, 2014. As of Dec. 31, 2015, Genius Brands had $18.87 million in total assets, $4.74 million in total liabilities and $14.1 million in total equity. "Historically, the Company has incurred net losses. As of December 31, 2015, the Company had an accumulated deficit of $27,735,776 and a total stockholders' equity of $14,121,584. At December 31, 2015, the Company had current assets of $5,432,031, including cash of $5,187,620 and current liabilities of $2,606,680, including short-term debt to related parties which bears no interest and has no stated maturity of $410,535 and certain trade payables of $925,000 to which the Company disputes the claim, resulting in working capital of $2,825,351. For the years ended December 31, 2015 and 2014, the Company reported a net loss of $3,483,122 and $3,728,599, respectively, and reported net cash used by operating activities during year ended December 31, 2015 of $3,396,581." A full-text copy of the Form 10-K is available for free at: http://is.gd/lnN8MD On March 30, 2016, Genius Brands distributed to its shareholders a letter from the Company's CEO, a copy of which is available for free at http://is.gd/mCW7zU About Genius Brands Beverly Hills, Calif.-based Genius Brands International, Inc., creates and distributes music-based products which it believes are entertaining, educational and beneficial to the well-being of infants and young children under its brands, including Baby Genius and Little Genius. GLYECO INC: Delays 2015 Form 10-K to Complete Audit --------------------------------------------------- GlyEco, Inc., filed with the U.S. Securities and Exchange Commission a Notification of Late Filing on Form 12b-25 with respect to its annual report on Form 10-K for the year ended Dec. 31, 2015. The Company said it has requested this extension to enable its independent registered public accounting firm to complete its audit of the financial statements to be included in the Company's Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2015. Glyeco intends to file the Annual Report on Form 10-K within the additional time allowed by this extension. About GlyEco, Inc. Phoenix, Ariz.-based GlyEco, Inc., is a green chemistry company formed to roll-out its proprietary and patent pending glycol recycling technology that transforms waste glycols, a hazardous material, into profitable green products. Glyeco reported a net loss attributable to common shareholders of $8.73 million on $5.89 million of net sales for the year ended Dec. 31, 2014, compared with a net loss of $4 million on $5.53 million of net sales for the year ended Dec. 31, 2013. As of Sept. 30, 2015, the Company had $15.1 million in total assets, $2.37 million in total liabilities and $12.8 million in total stockholders' equity. Semple, Marchal & Cooper, LLP, in Phoenix, Arizona, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2014, citing that the Company has yet to achieve profitable operations and is dependent on its ability to raise capital from stockholders or other sources to sustain operations and to ultimately achieve viable operations. These factors raise substantial doubt about the Company's ability to continue as a going concern. GOLD RIVER VALLEY: Court OKs Lone Oak Deal, Closes Case ------------------------------------------------------- A U.S. bankruptcy judge has approved a deal that would resolve Gold River Valley LLC's dispute with Lone Oak Fund LLC over payment of default interest owed to the secured creditor. Under the agreement, Lone Oak will retain the payment but will not receive any further payments from the estate. The agreement, approved by U.S. Bankruptcy Judge Thomas Donovan, also closes the receivership estate to avoid incurring additional fees and costs. The agreement was reached following a mediation overseen by David Meadows, Esq., who was appointed on Jan. 21 by the bankruptcy judge. In the same order, Judge Donovan approved the fees and expenses of Levene, Neale, Bender, Yoo & Brill LLP in the amount of $238,879, and Gold River's Chapter 11 plan of reorganization on a final basis. The bankruptcy judge also ordered to close Gold River's Chapter 11 case, according to court filings. About Gold River Valley Gold River Valley, LLC, sought Chapter 11 bankruptcy protection (Bankr. C.D. Cal. Case No. 15-10691) in Los Angeles, on Jan. 16, 2015. David B. Golubchik, Esq., and Jeffrey S. Kwong, Esq., at Levene, Neale, Bender, Yoo & Brill L.L.P., represents the Debtor as counsel. The Debtor disclosed $12,000,000 in assets and $8,720,911 in liabilities as of the Chapter 11 filing. * * * Judge Thomas B. Donovan of the U.S. Bankruptcy Court for the District of California on Sept. 16, 2015, entered an order conditionally confirming the Chapter 11 Plan of Gold River Valley. The order authorized and approved the sale of the Debtor's property to Ding Gang, the buyer, for $10.8 million. A copy of the order is available for free at http://is.gd/2JWI1V GRAHAM GULF: Objects to Dafour's Fees, Costs and Expenses --------------------------------------------------------- Graham Gulf, Inc., submitted with the U.S. Bankruptcy Court for the Southern District of Alabama, its objection to the fees, costs and expenses of Dufour, Laskay & Strouse, Inc., as marine surveyors for Wells Fargo. Jeffery J. Hartley, Esq., at Helmsing, Leach, Herlong, Newman & Rouse, P.C., in Mobile, Alabama, tells the Court that he received an invoice for services rendered by Dufour at the direction of Wells Fargo. He further tells the Court that based on the submitted invoice, the amounts claimed by Dufour appear to be entirely for the Oct. 14, 2015 appraisal of the Debtor's fleet. The Debtor objects to the reasonableness and necessity of the fees, costs and expenses sought by Dufour. It alleges that the value added to the case by the services performed by Dafour has not been established. The Debtor contends that based on the current likely sale value of the Debtor's assets, Wells Fargo is undersecured. "As such, Dufour is not entitled to be immediately paid for the work it performed on behalf of Wells Fargo," the Debtors further contend. The Debtors add that any work performed by Dufour was done at the exclusive direction and for the exclusive benefit of Wells Fargo. The Debtor's objection is scheduled for hearing on April 12, 2016 at 08:30 a.m. Graham Gulf, Inc., is represented by: Jeffery J. Hartley, Esq. Christopher T. Conte, Esq. HELMSING, LEACH, HERLONG, NEWMAN & ROUSE, P.C. Post Office Box 2767 Mobile, AL 36652 Telephone: (251)432-5521 Facsimile: (251)432-0633 E-mail: jjh@helmsinglaw.com ctc@helmsinglaw.com About Graham Gulf, Inc. Founded in 1996, Graham Gulf, Inc. operates 11 fast supply vessels designed specifically for providing a more efficient and cost-effective support for field production operations and remote drilling location services. Graham Gulf filed Chapter 11 bankruptcy petition (Bankr. S.D. Ala. Case No. 15-03065) on Sept. 18, 2015. The petition was signed by Janson Graham, the president and owner. The Debtor estimated assets and liabilities in the range of $10 million to $50 million. Helmsing, Leach, Herlong, Newman & Rouse PC serves as the Debtor's counsel. Six creditors were appointed to Graham Gulf's official committee of unsecured creditors. The creditors are Superior Shipyard & Fabrication Inc., Thrustmaster of Texas Inc., American Supply LLC, Safety Controls Inc., Force Power Systems LLC and United Power Systems LLC. GREAT LAKES COMNET: Committee Hires Jaffe Raitt as Local Counsel ---------------------------------------------------------------- The Official Committee of Unsecured Creditors appointed in the bankruptcy cases of Great Lakes Comnet, Inc., and Comlink, L.L.C., seek authorization from the U.S. Bankruptcy Court for the Western District of Michigan to retain Jaffe, Raitt, Heuer & Weiss, P.C., as local counsel to the Committee, nunc pro tunc to February 2, 2016. The Committee says it has selected Jaffe as local counsel because of the firm's extensive general experience and knowledge, and in particular its recognized expertise in the field of debtor's and creditors' rights, business reorganizations under Chapter 11 of the Bankruptcy Code, and unsecured creditors committees' rights and duties. Cooley will be compensated at its standard hourly rates: Position Hourly Rate -------- ----------- Partners $225 - $565 Associates $190 - $325 Paralegals $100 - $205 The Firm will also be reimbursed for their reasonable and necessary out-of-pocket expenses. Judith Greenstone Miller, Esq., a partner at the Firm, assures the Court that Jaffe does not represent any entity other than the Committee in connection with the Debtors' cases. She adds that Jaffe is disinterested, as defined under Section 101(14) of the Bankruptcy Code and does not hold or represent an interest adverse to the Debtors' estates in the matters upon which Jaffe is to be employed, as local counsel to the Committee. Jaffe can be reached at: Judith Greenstone Miller, Esq. JAFFE RAITT HEUER & WEISS, P.C. 27777 Franklin Road, Suite 2500 Southfield, MI 48034 Telephone: (248)351-3000 Facsimile: (248)351-3082 E-mail: jmiller@jaffelaw.com About Great Lakes Comnet East Lansing, Michigan-based Great Lakes Comnet, Inc., owns and operates a 6,500 mile fiber network serving the carrier and enterprise sectors in Michigan, with the network extending to Ohio, Indiana, Illinois, Wisconsin, and Minnesota. GLC's services include transport, dark fiber sales, cloud and datacenter operations, toll resale, toll routes, local switching, tandem switching and SS7. GLC's tandem switch is used -- in conjunction with tandem transport services provided by GLC and Westphalia Telephone Company -- to send long distance calls from the network of one telecommunications carrier to the network of another telecommunications carrier. By using the services provided by GLC and WTC, interexchange carriers such as AT&T, are able to exchange interstate long distance calls with local telecommunications service providers, namely, rural Incumbent Local Exchange Carriers and competitive LECs, located throughout Michigan, where the rural ILECs and CLECs operate "end office switches" homing on GLC's tandem switch. Comlink provides data and communication services, including dedicated ultra-high-speed bandwidth data transmission, Ethernet private line services and virtual private network services, cloud-based and colocation data center services, and data management services to Consumers Energy, several hospital systems, municipalities and state correctional facilities. Great Lakes Comnet, Inc. and Comlink, LLC filed Chapter 11 bankruptcy petitions (Bankr. W.D. Mich. Case Nos. 16-00290 and 16-00292, respectively) on Jan. 25, 2016. The petitions were signed by John Summersett as chief executive officer. The Debtors estimated both assets and debts in the range of $10 million to $50 million. The Debtors have engaged Miller Canfield Paddock & Stone PLC as counsel, Alix Partners LLP as restructuring advisors and Kurtzman Carson Consultants, LLC as claims, balloting and noticing agent. The United States Trustee for Region 9 has appointed seven members to the Official Committee of Unsecured Creditors in the Chapter 11 cases of Great Lakes Comnet, Inc., and its debtor affiliates. GREAT LAKES COMNET: Creditors' Committee Taps Cooley as Counsel --------------------------------------------------------------- The Official Committee of Unsecured Creditors appointed in the bankruptcy cases of Great Lakes Comnet, Inc., and Comlink, L.L.C., seek authorization from the U.S. Bankruptcy Court for the Western District of Michigan to retain Cooley LLP as lead counsel, nunc pro tunc to February 2, 2016. As the Creditors Committee's lead counsel, Cooley will: (a) attend the meetings of the Committee; (b) review financial and operational information furnished by the Debtors to the Committee; (c) assist in the efforts to sell assets of the Debtors in a manner that maximizes the value for creditors; (d) review and investigate prepetition transactions in which the Debtors and their insiders were involved; (e) analyze and negotiate any proposed sale, plan or exit strategy in these cases; (f) confer with the Debtors' management, counsel and financial advisors; (g) review the Debtors' schedules, statements of financial affairs and business plan; (h) advise the Committee as to the ramifications regarding all of the Debtors' activities and motions before the Court; (i) review and analyze the Debtors' work product of the Debtors' investment bankers and financial advisors; (j) provide the Committee with legal advice in relation to the Chapter 11 cases; (k) prepare various applications and memoranda of law submitted to the Court for consideration; and (l) prepare other legal services for the Committee as may be necessary or proper in this proceeding. The current hourly rates of Cooley are: Standard Attorney Position Hourly Rate -------- -------- ----------- Cathy Hershcopf Partner $995 Jason Koral Partner $865 Seth Van Aalten Partner $835 Michael Klein Associate $800 Max Schlan Associate $630 David Bright Associate $560 Rebecca Goldstein Paralegal $320 Cooley will charge the Committee for all charges and disbursements incurred in rendering services to the Committee. Cathy Hershcopf, Esq., a partner at Cooley, assures the Court that the Firm is a "disinterested person," as that term is defined in Section 101(14) of the Bankruptcy Code. Cooley can be reached at: Cathy Hershcopf, Esq. COOLEY LLP The Grace Building 1114 Avenue of the Americas New York, NY 10036-7798 Telephone: (212) 479-6138 Facsimile: (212) 479-6275 E-mail: chershcopf@cooley.com About Great Lakes Comnet East Lansing, Michigan-based Great Lakes Comnet, Inc., owns and operates a 6,500 mile fiber network serving the carrier and enterprise sectors in Michigan, with the network extending to Ohio, Indiana, Illinois, Wisconsin, and Minnesota. GLC's services include transport, dark fiber sales, cloud and datacenter operations, toll resale, toll routes, local switching, tandem switching and SS7. GLC's tandem switch is used -- in conjunction with tandem transport services provided by GLC and Westphalia Telephone Company -- to send long distance calls from the network of one telecommunications carrier to the network of another telecommunications carrier. By using the services provided by GLC and WTC, interexchange carriers such as AT&T, are able to exchange interstate long distance calls with local telecommunications service providers, namely, rural Incumbent Local Exchange Carriers and competitive LECs, located throughout Michigan, where the rural ILECs and CLECs operate "end office switches" homing on GLC's tandem switch. Comlink provides data and communication services, including dedicated ultra-high-speed bandwidth data transmission, Ethernet private line services and virtual private network services, cloud-based and colocation data center services, and data management services to Consumers Energy, several hospital systems, municipalities and state correctional facilities. Great Lakes Comnet, Inc. and Comlink, LLC filed Chapter 11 bankruptcy petitions (Bankr. W.D. Mich. Case Nos. 16-00290 and 16-00292, respectively) on Jan. 25, 2016. The petitions were signed by John Summersett as chief executive officer. The Debtors estimated both assets and debts in the range of $10 million to $50 million. The Debtors have engaged Miller Canfield Paddock & Stone PLC as counsel, Alix Partners LLP as restructuring advisors and Kurtzman Carson Consultants, LLC as claims, balloting and noticing agent. The United States Trustee for Region 9 has appointed seven members to the Official Committee of Unsecured Creditors in the Chapter 11 cases of Great Lakes Comnet, Inc., and its debtor affiliates. GREAT LAKES COMNET: U.S. Trustee Appoints 7-Member Committee ------------------------------------------------------------ Daniel M. McDermott, United States Trustee for Region 9, appoints the following persons to the Official Committee of Unsecured Creditors in the Chapter 11 cases of Great Lakes Comnet, Inc., and its debtor affiliates: (1) AT&T Corp. c/o James W. Grudus, Esq. One AT&T Way, Room 3A115 Bedminster, NJ 07921 (908) 234-3318 Fax: (832) 213-0157 Email: jg5786@att.com (2) MLW Sales, LLC c/o Thomas Davis 3696 Chestnut Lane Dryden, MI 48428 (810) 287-7812 Email: tdavis@fiberlinkinc.com (3) TK Communications c/o Karl Wuestenberg 3529 W. Genesee Rd., Ste. 6 Lapeer, MI 48446 (517) 927-4022 Fax: (810) 667-3120 Email: karlw@fiberlinkinc.com (4) Merit Network, Inc. c/o Joseph Sawasky 1000 Oakbrook Dr., Ste. 200 Ann Arbor, MI 48104 (734) 527-5700 Fax: (734) 527-5790 Email: sawasky@merit.edu (5) AVS c/o Ed Eichler and Ray Leppien 7585 Pigeon Rd. P.O. Box 650 Pigeon, MI 48755 (989) 453-4391 Fax: (989) 453-3322 Email: eeichler@avci.net rleppien@avci.net (6) Buist Electric Inc. c/o Scott Bishop 8650 Byron Center Ave. SW Byron Center, MI 49315 (616) 583-5209 Fax: (616) 878-0872 Email: sbishop@buistelectric.com (7) ACD.NET (Keps Technologies) c/o Kirk Shewchuck 1800 N. Grand River Lansing, MI 48906 (517) 999-3244 Fax: (517) 999-3993 Shewchuck.kirk@acd.net Official creditors' committees have the right to employ legal and accounting professionals and financial advisors, at a debtor's expense. They may investigate the debtor's business and financial affairs. Importantly, official committees serve as fiduciaries to the general population of creditors they represent. The Committee tapped Cooley LLP as lead counsel, Jaffe, Raitt, Heuer & Weiss, P.C., as local counsel, and O'Keefe & Associates Consulting LLC as financial advisor. The U.S. Trustee is represented by: Michelle M. Wilson Trial Attorney Office of the United States Trustee United States Department of Justice 125 Ottawa NW, Suite 200R Grand Rapids, Michigan 49503 (616) 456-2002, ext. 119 About Great Lakes Comnet East Lansing, Michigan-based Great Lakes Comnet, Inc., owns and operates a 6,500 mile fiber network serving the carrier and enterprise sectors in Michigan, with the network extending to Ohio, Indiana, Illinois, Wisconsin, and Minnesota. GLC's services include transport, dark fiber sales, cloud and datacenter operations, toll resale, toll routes, local switching, tandem switching and SS7. GLC's tandem switch is used -- in conjunction with tandem transport services provided by GLC and Westphalia Telephone Company -- to send long distance calls from the network of one telecommunications carrier to the network of another telecommunications carrier. By using the services provided by GLC and WTC, interexchange carriers such as AT&T, are able to exchange interstate long distance calls with local telecommunications service providers, namely, rural Incumbent Local Exchange Carriers and competitive LECs, located throughout Michigan, where the rural ILECs and CLECs operate "end office switches" homing on GLC's tandem switch. Comlink provides data and communication services, including dedicated ultra-high-speed bandwidth data transmission, Ethernet private line services and virtual private network services, cloud-based and colocation data center services, and data management services to Consumers Energy, several hospital systems, municipalities and state correctional facilities. Great Lakes Comnet, Inc. and Comlink, LLC filed Chapter 11 bankruptcy petitions (Bankr. W.D. Mich. Case Nos. 16-00290 and 16-00292, respectively) on Jan. 25, 2016. The petitions were signed by John Summersett as chief executive officer. The Debtors estimated both assets and debts in the range of $10 million to $50 million. The Debtors have engaged Miller Canfield Paddock & Stone PLC as counsel, Alix Partners LLP as restructuring advisors and Kurtzman Carson Consultants, LLC as claims, balloting and noticing agent. GREAT LAKES: Has Final Court OK to Borrow $5.5-Mil. from CoBank --------------------------------------------------------------- Judge John T. Gregg of the U.S. Bankruptcy Court for the Western District of Michigan gave Great Lakes Comnet, Inc. and Comlink, L.L.C., final authority to borrow and obtain credit from CoBank, ACB, an aggregate principal amount of up to $5,500,000. The Debtors are also authorized to use the DIP Lender and Prepetition Senior Lender's Cash Collateral in the ordinary course of their businesses to pay amounts in accordance with the Budget plus any Permitted variance of not more than $500,000 from the Projected Cash Flows before the DIP Financing. The DIP Approval Orders also provide for a "Carve-Out" for: (a) unpaid fees of the Clerk of the Court and the U.S. Trustee, (b) unpaid fees and expenses of professionals of the Debtors and the Committee, (c) any success fee under the Budget that may become due to Media Venture Partners, LLP, (d) any success fee that may become due to John Summersett, (e) a success fee under the Budget that may become due to Gordon Schreur in the amount of $75,000, (f) an amount not to exceed $927,661 to pay administrative expenses incurred after the closing of a sale of substantially all of the Debtors' assets, and (g) fees and expenses of any Chapter 7 Trustee and any Chapter 7 professionals in an aggregate amount not to exceed $25,000. Finally, the DIP Lender will allow up to $25,000 of fees to be paid from the proceeds of the Postpetition Loans to the Committee’s Professionals for the research, review, analysis, investigation, initiation, prosecution or pursuit of any claim or cause of action of any kind or nature whatsoever against the DIP Lender. Judge Gregg further ordered that any objections to the Motion, including the objection raised by the Official Committee of Unsecured Creditors, that have not been withdrawn or resolved are denied and overruled. The Committee said that while it supports the Debtors' sale of substantially all of their assets and recognizes the Debtors' need for liquidity to administer the proposed sale process, the Committee objected to the unreasonable restrictions on its ability to investigate and challenge the Debtors' stipulations regarding the prepetition liens, claims and conduct of CoBank. The Debtors alleged that they have been informed by CoBank that it is unwilling to continue to provide financing under the uncertainty of future litigation for more than 60 days especially since the Committee and CoBank has already agreed for an expedited discovery schedule, thus, 60 days should be enough time. The Committee also objected to the grant of liens and superpriority claims on previously unencumbered assets of the Debtors asserting that secured creditors are only entitled to adequate protection to the extent of the anticipated or actual decrease in value of the secured collateral during the bankruptcy case. The Debtor argue that the grant of an adequate protection lien is appropriate for Section 361(2) specifically authorizes an "additional or replacement lien" to the extent that the property interest of the Debtors is not subject to CoBank’s Prepetition Lender's Lien. Great Lakes Comnet, Inc. and Comlink, L.L.C. are represented by: Jonathan S. Green, Esq. Stephen S. LaPlante, Esq. MILLER, CANFIELD, PADDOCK AND STONE, PLC 150 West Jefferson, Suite 2500 Detroit, MI 48226 Telephone: (313) 963-6420 Email: green@millercanfield.com laplante@millercanfield.com The Official Committee of Unsecured Creditors is represented by: Judith Greenstone Miller, Esq. Jay L. Welford, Esq. JAFFE, RAITT, HEUER & WEISS, P.C. 27777 Franklin Road, Suite 2500 Southfield, MI 48034 Telephone: (248) 351-3000 Facsimile: (248) 351-3082 Emails: jmiller@jaffelaw.com jwelford@jaffelaw.com -- and -- Cathy Hershcopf, Esq. Seth Van Aalten, Esq. COOLEY LLP 1114 Avenue of the Americas New York, New York 10036 Telephone: (212) 479-6000 Facsimile: (212) 479-6275 Email: chershcopf@cooley.com svanaalten@cooley.com About Great Lakes Comnet East Lansing, Michigan-based Great Lakes Comnet, Inc., owns and operates a 6,500 mile fiber network serving the carrier and enterprise sectors in Michigan, with the network extending to Ohio, Indiana, Illinois, Wisconsin, and Minnesota. GLC's services include transport, dark fiber sales, cloud and datacentre operations, toll resale, toll routes, local switching, tandem switching and SS7. GLC's tandem switch is used -- in conjunction with tandem transport services provided by GLC and Westphalia Telephone Company – to send long distance calls from the network of one telecommunications carrier to the network of another telecommunications carrier. By using the services provided by GLC and WTC, interexchange carriers such as AT&T, are able to exchange interstate long distance calls with local telecommunications service providers, namely, rural Incumbent Local Exchange Carriers and competitive LECs, located throughout Michigan, where the rural ILECs and CLECs operate "end office switches" homing on GLC's tandem switch. Comlink provides data and communication services, including dedicated ultra-high-speed bandwidth data transmission, Ethernet private line services and virtual private network services, cloud-based and colocation data center services, and data management services to Consumers Energy, several hospital systems, municipalities and state correctional facilities. Great Lakes Comnet, Inc. and Comlink, LLC filed Chapter 11 bankruptcy petitions (Bankr. W.D. Mich. Case Nos. 16-00290 and 16-00292, respectively) on Jan. 25, 2016. The petitions were signed by John Summersett as chief executive officer. The Debtors estimated both assets and debts in the range of $10 million to $50 million. The Debtors have engaged Miller Canfield Paddock & Stone PLC as counsel, Alix Partners LLP as restructuring advisors and Kurtzman Carson Consultants, LLC as claims, balloting and noticing agent. GUIDED THERAPEUTICS: Issues Letter to Shareholders -------------------------------------------------- Guided Therapeutics, Inc. released on March 31, 2016, the following letter to shareholders. Dear Fellow Shareholders, Thank you for your support of Guided Therapeutics and recognition of the tremendous opportunity that lies ahead of us. I wanted to share with you in detail what we are doing to create a prosperous business with a positive contribution in the global healthcare world. In late 2014, we began a refocus of the LuViva Advanced Cervical Scan from a niche gynecology product designed for triage in the U.S. and European Women's Healthcare market to one that would address the problem of cervical cancer worldwide. The screening market is six times larger than the triage market and has a real and urgent need. It also opens up the opportunity to gain access to large segments of the population in the developing world by working with local and national governments. To date, we have shipped LuVivas to 22 countries and have distributors covering 58 nations. So we have plenty of opportunity for growth within our existing network. Screening for cervical cancer offers one of the largest opportunities available in diagnostic medicine. Our market opportunity for screening is so large because unlike most diagnostic tests, we're testing the entire female population, including women who appear healthy and not just patients presenting with symptoms of the disease. A woman becomes "at risk" for cervical cancer after becoming sexually active, and cervical cancer is linked to a sexually transmitted disease -- human papillomavirus (HPV). In the developing world, our main focus, there are approximately 2.0 billion women aged 15 and older who are potentially eligible for screening with LuViva. According to the study Cervical Cancer Diagnostic Tests Market -- Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2014 -- 2020[1], the market for cervical cancer diagnostic tests is on track to reach $8.9 billion by 2020, up from $5.9 billion in 2013, with a 6.10% CAGR expected in 2014-2020. LuViva Advantages and Benefits * The LuViva is like no other screening product in the world. LuViva scans the entire cervix with light and uses spectroscopy to detect early signs of cancer, when it is most effectively treated. For the first time, women can obtain reliable results from cervical cancer screening within minutes instead of having to wait for days, or even weeks, to know if they are healthy. Because of its unique design, LuViva is portable. It can travel to all parts of the world. Moreover, it is economic to use. Just one device can scan dozens of women a day without requiring uncomfortable tests and extensive and expensive laboratory systems. The simplicity of its design permits operation by nurses and technicians and does not require extensive training. This is another cost saving that makes it extremely attractive. This is a revolutionary change in women's reproductive healthcare. Some of LuViva's Key Advantages: * Doesn't require a doctor * Doesn't take a tissue sample * Doesn't need a laboratory * Gives an immediate result at the Point of Care Business Model Our business model for LuViva is the familiar razor/razor blade one. Each LuViva scan requires a single-patient-use disposable, called a Cervical Guide. Most commonly, the LuViva device is sold as capital equipment, with continuing revenue from sales of the disposables. The margin for our disposables is 80%, which makes this a very attractive business. Since the Cervical Guide is critical to our business, we have developed anti-counterfeiting and anti-reuse measures employed on each one. Each disposable carries an RFID chip that signals LuViva before each use, insuring against reuse and the use of knock-offs. Our Opportunity: We Begin With Developing Markets We believe the largest and most immediate market opportunities for LuViva lie in partnering with governments in the developing world where the infrastructure to support a laboratory-based screener such as the Pap test or HPV is not available or is limited. According to a study conducted at Brown University, more than 80% of cases and cervical cancer-related deaths globally occur in the developing world and fewer than 5% of women are screened for cervical cancer.[2] Because these nations often operate with limited healthcare budgets and struggle to provide preventive measures, the highly cost-effective nature of the LuViva makes it particularly attractive to developing countries, and we are having significant success in these markets. Our first success in implementing this strategy is Turkey, where we have shipped 33 LuViva devices and approximately 48,000 disposable Cervical Guides. We have commitments from our distributor to double the number of Cervical Guides and ship an additional 35 LuVivas in the first half of 2016. This is a major achievement for a company of any size with a revolutionary, new medical product, so for an emerging growth company like Guided Therapeutics, it is all the more so. We, along with our distributor, have worked long and hard on this deal. It demonstrates the time and effort required to secure government contracts. Given the significant returns, it is something that we believe we should continue to focus on. We believe that our next major market opportunities are in Africa and Southeast Asia, where we are working with our distributors to partner with governments to become integrated into national screening programs: In Kenya -- In January 2016, the Nairobi County Health Services Sector agreed to purchase an additional five LuVivas for use in the agency's cervical cancer screening program. We expect to ship those units by the end of the first quarter. This brings to six the number of LuVivas purchased by Nairobi County, with an additional seven units planned for purchase in 2016. When fully implemented, the County will have the capacity to screen more than 144,000 women per year. The United Nations World Health Organization indicates that only 3.2% of women aged 18-69 in Kenya are screened for cervical cancer every three years versus 70% of women in the developed world. So there is plenty of opportunity for growth in Kenya, and the National Screening program is our next target market. In Nigeria -- We are encouraged that the newly appointed Minister of Health for Nigeria, Professor Issac Adewole, M.D., is an early proponent of the benefits of using LuViva. He has also performed a favorable clinical study using LuViva and published the data prior to being appointed as Minister of Health for Nigeria. We have sold six units to Nigeria and expect to be included in a national screening program once the new annual budget is approved. In Indonesia -- We recently announced shipments of the LuViva to Indonesia, the fourth most populous country in the world. We have shipped six units to Indonesia to date. We have several studies underway with leading doctors there. In Bangladesh -- We hope to expand to about 60 medical facilities nationwide after a successful pilot program. In Bangladesh, cervical cancer is the leading cancer among women. We have already sold eight LuVivas to the government. In addition, we are working in about a half dozen other developing countries around the world to establish LuViva as a primary tool for screening for cervical cancer. Our Opportunity in More Developed Countries LuViva can also help solve a problem in more developed countries that have organized cervical cancer screening programs. Screening programs have greatly reduced the number of cases of cervical cancer. However, an unintended consequence of the success of these screening programs is that they often lead to over-testing and over-treatment that is expensive and places unnecessary physical and emotional stress on women and their families. LuViva is designed to complement the current standard of care to reduce unnecessary testing and thereby lower costs and minimize unwarranted emotional distress. The largest single market for this particular application of LuViva is by far the U.S. We are very encouraged by our recent discussions and meeting with the U.S. Food and Drug Administration (FDA) towards bringing LuViva to market. We met with the FDA in November 2015, along with two leading U.S. OBGYN advocates of LuViva, and we believe we have reached a general agreement on a plan for submitting an approvable application. Our next steps are to submit a clinical protocol for collecting the additional patient data. Once the protocol is finalized, we will conduct the study, analyze the data and present the results to the agency for review. However, it's important to note that the approval process for a product like LuViva that employs new technology can take years. We will continue to work to get LuViva approved in its home country to augment approvals -- and opportunities -- in Europe, Canada and Mexico. With respect to using LuViva as a triage device, we are working with the right thought leaders to have LuViva included in the standard of care in markets where we have approval, at the same time as we make progress to obtain approval in the U.S. While it takes time to develop screening market opportunities with new technology, once a foothold is established, the growth can be quick. Exact Sciences was started in 1995 to develop a screening test for colon cancer. Revenue in Q1 of 2014 was $300,000 but grew to $12.6 million in Q3 2015. Record Sales to Date -- But That's Just the Beginning We are enjoying tremendous momentum as our strategy to target developing markets bears fruit. We have sold more than 90 LuVivas and approximately 40,000 Cervical Guides since product introduction, with 30% of Cervical Guide sales recorded in the fourth quarter of 2015. In 2016, we expect to generate orders of $3 million to $5 million for the full year. If we are successful in our endeavors to convert markets to LuViva for primary screening, there is the opportunity for exponential growth over the coming years. Enhanced Financial Flexibility Our goal is to generate as much operating capital as possible through non-dilutive means such as product revenue, territory licensing fees and royalty payments, partnering with large multinational companies, contracts with non-governmental organizations and assuming debt at a reasonable cost. We are also managing expenses closely and have reduced our burn rate from approximately $3.2 million per quarter in 2014 to approximately $1.8 million -- a reduction of more than 40%. We are also covering a larger percentage of our burn rate with revenue from LuViva sales. We believe that the future of the company is bright, and, with your continued support, we will achieve our mutual goals of having a profound and positive effect on women's healthcare and financial success. Sincerely, /s/ Gene Cartwright Chief Executive Officer About Guided Therapeutics Guided Therapeutics, Inc. (OTC BB and OTC QB: GTHP) -- http://www.guidedinc.com/-- is developing a rapid and painless test for the early detection of disease that leads to cervical cancer. The technology is designed to provide an objective result at the point of care, thereby improving the management of cervical disease. Unlike Pap and HPV tests, the device does not require a painful tissue sample and results are known immediately. GT has also entered into a partnership with Konica Minolta Opto to develop a non-invasive test for Barrett's Esophagus using the LightTouch technology platform. Guided Therapeutics reported a net loss attributable to common stockholders of $9.50 million on $42,000 of contract and grant revenue for the year ended Dec. 31, 2015, compared to a net loss attributable to common stockholders of $10.03 million on $65,000 of contract and grant revenue for the year ended Dec. 31, 2014. As of Dec. 31, 2015, Guided Therapeutics had $2.56 million in total assets, $8.12 million in total liabilities and a $5.56 million total stockholders' deficit. HAGGEN HOLDINGS: Seeks $68-Mil. Refinance of DIP Facility --------------------------------------------------------- Haggen Holdings, LLC and its affiliated Debtors ask the U.S. Bankruptcy Court for the District of Delaware, for authorization to refinance their existing DIP Facility. The Debtors had entered into a Debtor-In-Possession Revolving Credit and Security Agreement with PNC Bank, National Association as Agent and the lenders party thereto ("Existing DIP Facility"), which provided them with a revolving loan facility in a maximum aggregate amount of up to $215,000,000 secured by valid, binding, enforceable, non-avoidable and perfected liens on and security interests in substantially all of the Debtors' assets. The Court approved the relief requested in the Existing DIP Motion on a final basis, in its October 15, 2015 Final DIP Order. The terms of the Existing DIP Facility were subsequently amended from time to time. The Proposed Amended DIP Facility contains, among others, the following relevant terms: (a) Borrowers: Haggen, Inc., Haggen Opco South, LLC and Haggen Opco North, LLC. (b) Guarantors: Haggen Operations Holdings and Haggen Acquisition LLC. (c) Replacement DIP Lender: Albertson's LLC or its designee. (d) Replacement DIP Agent: Albertson's LLC or its designee (e) Amounts and Availability: The Amended DIP Facility will be a single draw term loan facility in an aggregate principal amount of $68 million ("DIP Term Loan") to be made available to the Debtors to (i) repay the outstanding balance of the existing post-petition revolving loan, together with accrued but unpaid interest, fees and expenses, and to cash collateralize an outstanding letter of credit issued pursuant to the Existing DIP Facility, (ii) to pay fees, expenses and other amounts related to the financing contemplated by the DIP Commitment Letter, and (iii) to fund the Debtors' ongoing working capital requirements, including, without limitation, the fees, costs and expenses of the Bankruptcy Case, in each case, pursuant to a budget in form and substance satisfactory to the Replacement DIP Agent. (f) Interest: 5.0% per annum, payable in monthly arrears (g) Default Interest: 7.0% per annum at any time that an event of default has occurred and is continuing, payable upon demand. (h) Facility Fee: 2.0% of the amount of the DIP Term Loan (or $1,360,000), which will be fully earned on the Closing Date, and of which $325,000 will be due and payable on the Closing Date, and the balance shall be due and payable on the Maturity Date or the earlier prepayment in full of the outstanding principal balance of the DIP Term Loan. The Debtors contend that their ability to maintain business relationships with their vendors, suppliers, landlords and customers, to pay their employees and to otherwise fund their operations is essential to the Debtors' continued viability. The Debtors further contend that their ability to obtain sufficient working capital and liquidity through the Amended DIP Facility is vital to the preservation and maximization of the value of the Debtors' currently operating businesses and the consummation of the Albertson's Sale. Haggen Holdings, LLC, and its affiliated debtors are represented by: Matthew B. Lunn, Esq. Robert F. Poppiti, Jr., Esq. Ian J. Bambrick, Esq. Ashley E. Jacobs, Esq. YOUNG CONAWAY STARGATT & TAYLOR, LLP Rodney Square 1000 North King Street Wilmington, DE 19801 Telephone: (302)571-6600 Facsimile: (302)571-1256 E-mail: mlunn@ycst.com rpoppiti@ycst.com ibambrick@ycst.com ajacobs@ycst.com - and - Frank A. Merola, Esq. Sayan Bhattacharyya, Esq. Elizabeth Taveras, Esq. STROOCK & STROOCK & LAVAN LLP 180 Maiden Lane New York, NY 10038 Telephone: (212)806-5400 Facsimile: (212)806-6006 E-mail: fmerola@stroock.com sbhattacharyya@stroock.com 8th Amendment to Credit Agreement Haggen Holdings, LLC, et al., won approval from the Bankruptcy Court to enter into an Eight Amendment to the Debtor-In-Possession Revolving Credit and Security Agreement with PNC Bank, National Association as agent for the lenders. On Oct. 15, 2015, the Court entered a final order authorizing the Debtors to obtain postpetition financing in accordance with the DIP Credit Agreement. The Debtors secured financing of up to $215 million from PNC Bank, National Association, in its capacity as agent. According to the 8th Amendment, Section 10.7(gg) was deleted in its entirety and replaced as follows: (gg) the Loan Parties fail to, (i) on or before March 14, 2016, (A) file a motion in form and substance acceptable to Agent and Required Lenders with the Bankruptcy Court requesting approval of replacement debtor-in-possession financing, and (B) deliver to Agent a commitment letter from Albertsons LLC, in form and substance acceptable to Agent and Required Lenders, for such replacement debtor-in-possession financing; or (iii) on or before March 18, 2016, deliver to Agent an executed Asset Purchase Agreement with Albertsons, LLC in form and substance acceptable to Agent and Required Lenders, with respect to the Core Stores Sale. A full-text copy of the Order, dated March 15, 2016, is available at http://is.gd/Qmljpg About Haggen Holdings, LLC Headquartered in Bellingham, Washington, Haggen was founded in 1933 as a single grocery store. From 1933 to 2014, Haggen grew into a 30 store family-run grocery chain, with stores located in the northwestern United States. From 2011 to 2014, Haggen reduced its store base to 18, including a stand-alone pharmacy location. Haggen rapidly expanded in 2014 and 2015, and, as of the Petition Date, Haggen owned and operated 164 stores through three operating companies: Haggen, Inc., Haggen Opco North, LLC and Haggen Opco South, LLC. Haggen Holdings, LLC, and its affiliates filed Chapter 11 bankruptcy petitions (Bankr. D. Del. Case Nos. 15-11874 to 15-11879) on Sept. 8, 2015, with the intention of reorganizing, or selling as a going concern, their stores for the benefit of their creditors. The petitions were signed by Blake Barnett, the chief financial officer. The Debtors estimated assets of $50 million to $100 million and estimated liabilities of $10 million to $50 million. Young, Conaway, Stargatt & Taylor, LLP, is serving as the Debtors' local counsel. Stroock & Stroock & Lavan LLP serves as the Debtors' general counsel. Alvarez & Marsal North America, LLC, acts as the Debtors' financial advisor. Kurtzman Carson Consultants LLC serves as the Debtors' claims and noticing agent. In September 2015, T. Patrick Tinker, assistant U.S. trustee for Region 3, appointed seven creditors to the official committee of unsecured creditors. HANCOCK FABRICS: Court Okays GOB Sales for 185 Outlets ------------------------------------------------------ The U.S. Bankruptcy Court approved Hancock Fabrics' motion for an order approving the sale of assets free and clear of all liens, claims, encumbrances and other interests (pursuant to agency agreement with Great American Group [GA]) and granting related relief, BankruptcyData reported. The order states, "As confirmed on the record of the Sale Hearing, Great American Group, LLC has represented and warranted to the Debtors and their estates that the Agent has the resource and ability to comply with and will perform the terms, conditions and obligations contained in the Agency Agreement." GA, a subsidiary of B. Riley Financial, was the highest bidder in the bankruptcy auction for the assets and will manage the going-out-of-business sales for 185 Hancock Fabrics stores beginning on April 1, 2016, the report said. The sales are expected to last several weeks before all of the merchandise is sold. About Hancock Fabrics Hancock Fabrics, Inc., is a specialty fabric retailer operating stores under the name "Hancock Fabrics". Hancock has 4,500 full-time and part time employees. The Baldwyn, Mississippi-based company is one of the largest fabric retailers in the United States, operating 260 stores in 37 states as of October 31, 2015 and an internet store under the domain name http://www.hancockfabrics.com/ Hancock Fabrics, Inc. and six of its affiliates, retailer of fabric, sewing and accessories, filed Chapter 11 bankruptcy petitions (Bankr. D. Del. Case Nos. 16-10296 to 16-10302) on Feb. 2, 2016. Dennis Lyons, the senior vice president and chief administrative officer, signed the petitions. Judge Brendan Linehan Shannon is assigned to the jointly administered cases. The Debtors have engaged O'Melveny & Myers LLP as general counsel, Richards, Layton & Finger, P.A., as local counsel, Clear Thinking Group LLC as financial advisor, Retail Consulting Services, Inc. d/b/a Real Estate Advisors as real estate advisors and Kurtzman Carson Consultants, LLC as claims and noticing agent. The Debtors disclosed total assets of $151.4 million and total debts of $182.1 million. The Debtors owe its trade vendors approximately $21.2 million as of Jan. 31, 2016. HEMCON MEDICAL: Court to Hold Hearing on Asset Sale April 6 ----------------------------------------------------------- The U.S. Bankruptcy Court in Oregon is set to hold a hearing on April 6 to consider the sale of almost all assets of HemCon Medical Technologies Inc. The company has proposed to sell its assets to Tricol International Group Limited or to another buyer making a better offer. Tricol, which offered approximately $3.6 million for the assets, will serve as the stalking horse bidder. HemCon has decided to conduct a sale of its assets prior to approval of a restructuring plan out of concern that it won't be able to sustain its operations during a plan process, according to court filings. About HemCon Medical Technologies HemCon Medical Technologies, Inc., began operations in 2001 and today brings advanced wound care technologies to the worldwide healthcare market. HemCon Medical previously filed a Chapter 11 bankruptcy on April 10, 2012, in the District of Oregon (Case No. 12-32652-elp11). The Debtor's Fifth Amended Plan of Reorganization was confirmed on May 6, 2013, and the Final Decree was entered and the case was closed on Nov. 20, 2013. HemCon Medical again filed for Chapter 11 bankruptcy (Bankr. D. Ore. Case No. 16-30119) on Jan. 15, 2016. The petition was signed by Michael Wax as president and CEO. The Debtor estimated both assets and liabilities in the range of $10 million to $50 million. Tonkon Torp LLP serves as counsel in the new Chapter 11 case. HHH CHOICES: Court Approves Alston & Bird as Committee Counsel -------------------------------------------------------------- The Official Committee of Unsecured Creditors of HHH Choices Health Plan, LLC sought and obtained permission from the U.S. Bankruptcy Court for the District of New York to retain Alston & Bird LLP as counsel to the Committee. In addition to acting as primary spokesperson for the Committee, Alston & Bird's services will include, without limitation, assisting, advising, and representing the Committee with respect to the following matters: (a) the administration of this case and the exercise of oversight with respect to the Debtor's affairs including all issues arising from or impacting the Debtor or the Committee in this chapter 11 case; (b) the preparation on behalf of the Committee of all necessary applications, motions, orders, reports, and other legal papers; (c) appearances in this Court to represent the interests of the Committee; (d) the negotiation, formulation, drafting, and confirmation of any plan of reorganization or liquidation and matters related thereto; (e) the exercise of oversight with respect to any transfer, pledge, conveyance, sale, or other liquidation of the Debtor's assets; (f) such investigation as the Committee may desire concerning, among other things, the assets, liabilities, financial condition, and operating issues concerning the Debtor that may be relevant to this case; (g) such communication with the Committee's constituents and others as the Committee may consider desirable in furtherance of its responsibilities; and (h) the performance of all of the Committee's duties and powers under the Bankruptcy Code and the Bankruptcy Rules or as may be ordered by the Court. Alston & Bird will also be reimbursed for reasonable out-of-pocket expenses incurred. Martin G. Bunin, member of Alston & Bird, 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. Alston & Bird can be reached at: Martin G. Bunin, Esq. ALSTON & BIRD LLP 90 Park Avenue New York, NY 10016 Tel: (212) 210-9400 Fax: (212) 210-9444 E-mail: marty.bunin@alston.com About HHH Entities Three alleged creditors owed about $1.9 million submitted an involuntary Chapter 11 petition for HHH Choices Health Plan, LLC on May 4, 2015 (Bankr. S.D.N.Y. Case No. 15-11158) in Manhattan. The petitioners are The Royal Care, Inc., (allegedly owed $772,762), Amazing Home Care Services ($1,178,752), and InterGen Health LLC ($42,298), all claiming that they are owed by the Debtor for certain services rendered. They all tapped Marc A. Pergament, Esq., at Weinberg, Gross & Pergament, LLP, in Garden City, New York, as counsel. With the consent from the board of directors, HHH Choices filed a notice of consent to order for relief on June 1, 2015, and an order for relief was entered on June 22, 2015. HHH Choices was engaged in operating a managed long-term care program ("MLTCP"). HHH Choices, which essentially was a health insurance maintenance plan, sold its business in 2015. On Dec. 9, 2015, Hebrew Hospital Senior Housing, Inc., commenced a Chapter 11 case (Bankr. S.D.N.Y. Case No. 15-13264). HHSH is engaged in the sponsorship and operation of a 120-unit continuing care retirement community ("CCRC") with ancillary components consisting of; a 20 bed skilled nursing facility ("SNF"), which includes an adult day healthcare program ("ADHCP"), and a 10-bed enriched housing unit. These programs are commonly known as, Westchester Meadows and Fieldstone. On Jan. 8, 2016, Hebrew Hospital Home of Westchester, Inc. commenced a Chapter 11 Case (Case No. 16-10028). HHHW's predecessor, Hebrew Hospital Home, Inc. owned and operated a 480-bed skilled nursing facility located in the Bronx. In 1998, HHHW opened a new 160-bed facility situated at 61 Grasslands Road, Valhalla, New York. HHHW sold the Bronx SNF in 2007 and the Westchester SNF in mid-2015. HHHW no longer has any active business operations. However, it still has responsibilities to wind-up its affairs, including finishing any remaining billing and processing, filing reports with regulatory agencies and closing its books and records. The true-up process and final reconciliation with the purchasers of the Westchester SNF is incomplete. The Debtors sought and obtained an order directing joint administration of their cases under Case No. 15-11158. Judge Michael E. Wiles oversees the cases. Mary Frances Barrett is president of all of the Debtors. The Debtors tapped Harter Secrest & Emery LLP as counsel and Getzler Henrich & Associates LLC as financial advisor. HHH CHOICES: Patient Care Ombudsman Taps Gibbons as Counsel ----------------------------------------------------------- David N. Crapo, the patient care ombudsman appointed in the bankruptcy case of Hebrew Hospital Senior Housing, Inc. and its debtor-affiliates, asks permission from the U.S. Bankruptcy Court for the Southern District of New York to employ Gibbons P.C. as counsel, nunc pro tunc to January 15, 2016. The professional services that the Ombudsman expects that Gibbons may be called upon to render include, but shall not be limited to, the following: (a) representing the Ombudsman in any proceeding or hearing in the Bankruptcy Court, and in any action in other courts where the rights of the patients may be litigated or affected as a result of the bankruptcy case; (b) advising the Ombudsman concerning the requirements of the Bankruptcy Code and Bankruptcy Rules and the requirements of the Office of the United States Trustee relating to the discharge of his duties under Section 333 of the Bankruptcy Code; (c) advising and representing the Ombudsman concerning any potential reorganization or sale of the Debtors' assets; and (d) performing other legal services as may be required under the circumstances of this case in accordance with the Ombudsman's powers and duties as set forth in the Bankruptcy Code. Gibbons has advised the Ombudsman that the current hourly rates applicable to the principal attorneys and paralegals proposed to represent the Ombudsman are as follows: David N. Crapo, Esq. $525 Brett S. Theisen, Esq. $385 Ellen Rosen, Senior Paralegal $255 Gibbons will also be reimbursed for reasonable out-of-pocket expenses incurred. David Crapo 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. Gibbons can be reached at: David N. Crapo, Esq. GIBBONS P.C. One Gateway Center Newark, NJ 07102-5310 Tel: (973) 596-4523 Fax: (973) 639-6244 E-mail: dcrapo@gibbonslaw.com About HHH Entities Three alleged creditors owed about $1.9 million submitted an involuntary Chapter 11 petition for HHH Choices Health Plan, LLC on May 4, 2015 (Bankr. S.D.N.Y. Case No. 15-11158) in Manhattan. The petitioners are The Royal Care, Inc., (allegedly owed $772,762), Amazing Home Care Services ($1,178,752), and InterGen Health LLC ($42,298), all claiming that they are owed by the Debtor for certain services rendered. They all tapped Marc A. Pergament, Esq., at Weinberg, Gross & Pergament, LLP, in Garden City, New York, as counsel. With the consent from the board of directors, HHH Choices filed a notice of consent to order for relief on June 1, 2015, and an order for relief was entered on June 22, 2015. HHH Choices was engaged in operating a managed long-term care program ("MLTCP"). HHH Choices, which essentially was a health insurance maintenance plan, sold its business in 2015. On Dec. 9, 2015, Hebrew Hospital Senior Housing, Inc., commenced a Chapter 11 case (Bankr. S.D.N.Y. Case No. 15-13264). HHSH is engaged in the sponsorship and operation of a 120-unit continuing care retirement community ("CCRC") with ancillary components consisting of; a 20 bed skilled nursing facility ("SNF"), which includes an adult day healthcare program ("ADHCP"), and a 10-bed enriched housing unit. These programs are commonly known as, Westchester Meadows and Fieldstone. On Jan. 8, 2016, Hebrew Hospital Home of Westchester, Inc. commenced a Chapter 11 Case (Case No. 16-10028). HHHW's predecessor, Hebrew Hospital Home, Inc. owned and operated a 480-bed skilled nursing facility located in the Bronx. In 1998, HHHW opened a new 160-bed facility situated at 61 Grasslands Road, Valhalla, New York. HHHW sold the Bronx SNF in 2007 and the Westchester SNF in mid-2015. HHHW no longer has any active business operations. However, it still has responsibilities to wind-up its affairs, including finishing any remaining billing and processing, filing reports with regulatory agencies and closing its books and records. The true-up process and final reconciliation with the purchasers of the Westchester SNF is incomplete. The Debtors sought and obtained an order directing joint administration of their cases under Case No. 15-11158. Judge Michael E. Wiles oversees the cases. Mary Frances Barrett is president of all of the Debtors. The Debtors tapped Harter Secrest & Emery LLP as counsel and Getzler Henrich & Associates LLC as financial advisor. HIGH RIDGE: Gets Court Approval to Pay 2015 Income Tax ------------------------------------------------------ High Ridge Management Corp. received court approval to pay its income tax liabilities estimated for 2015. The order, issued by U.S. Bankruptcy Judge John Olson, allowed the company to pay more than $8.06 million to the U.S. State Department of the Treasury and the Florida Department of Revenue. High Ridge had earlier withdrawn its requests to approve an intercompany advance from Hollywood Hills Rehabilitation Center LLC to the company; and to force Jon Steinmeyer, the receiver, to provide the details of income received and expenses paid for 2015. About Hight Ridge Management Corp. High Ridge Management Corp., Hollywood Pavilion and Hollywood Hills Rehabilitation Center LLC, sought for Chapter 11 protection (Bankr. S.D. Fla. Lead Case No. 15-16388) on April 8, 2015. High Ridge is the landlord of Pavilion and Hollywood Hills. High Ridge is the 100 percent owner of the membership interests in Hollywood Hills and Pavilion. Prior to Jan. 14, 2014, when a receiver was appointed, High Ridge managed the operations for Pavilion and Hollywood Hills. The Hon. John K. Olson presides over the jointly administered cases. The Debtors tapped Grace E. Robson, Esq., at Markowitz Ringel Trusty & Hartog, P.A., in Fort Lauderdale, Florida, as their counsel, and Bayshore Partners, LLC as their investment banker. Clarence Lamont Davidson, Jr., Davidson Collins and Joyce CPA, LLC serve as the Debtors' accountants. Meanwhile, Nancy M. Ridenour and PDR Certified Public Accountants serve as auditing accountants for the Debtors. The U.S. trustee overseeing the Debtors' cases appointed Keith E. Gibson as patient care ombudsman on May 29, 2015. On Nov. 20, 2015, the Debtors disclosed total assets of $20.12 million and total liabilities of $60.53 million. HORSEHEAD HOLDING: Panel Hires Drinker Biddle as Co-counsel ----------------------------------------------------------- The Official Committee of Unsecured Creditors of Horsehead Holding Corp. and its debtor-affiliates seeks permission from the U.S. Bankruptcy Court for the District of Delaware to retain Drinker Biddle & Reath LLP as co-counsel, nunc pro tunc to February 16, 2016. The Committee requires Drinker Biddle to: (a) attend the meetings of the Committee; (b) review financial and operational information furnished by the Debtors to the Committee; (c) investigate and determine the value of unencumbered assets; (d) analyze and negotiate the budget and the terms of the debtor-in-possession financing; (e) assist in the efforts to sell assets or equity of the Debtors in a manner that maximizes the value for creditors; (f) analyze the proposed chapter 11 plan and negotiate a recovery for the holders of general unsecured claims; (g) review and investigate the liens of purported secured parties; (h) review and investigate prepetition transactions in which the Debtors and/or their insiders were involved; (i) confer with the Debtors' management, counsel and financial advisors; (j) review the Debtors' schedules, statements of financial affairs and business plan; (k) advise the Committee as to the ramifications regarding all of the Debtors' activities and motions before this Court; (l) file appropriate pleadings on behalf of the Committee; (m) review and analyze the Debtors' financial professionals' work product and report to the Committee on that analysis; (n) provide the Committee with legal advice in relation to the chapter 11 cases; (o) prepare various applications and memoranda of law submitted to the Court for consideration; and (p) perform such other legal services for the Committee as may be necessary or proper in these proceedings. Drinker Biddle will be paid at these hourly rates: Robert K. Malone, Partner $800 Steven Kortanek, Partner $675 Howard A. Cohen, Partner $600 Brian P. Morgan, Associate $485 Joseph N. Argentina, Associate $430 Jennifer M. Roussil, Associate $430 Jane L. Gorman, Paralegal $295 Margaret D. Broadwater, Paralegal $205 Drinker Biddle will also be reimbursed for reasonable out-of-pocket expenses incurred. Howard A. Cohen, partner of Drinker Biddle, 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. Drinker Biddle provided the response to the request for additional information set forth in Paragraph D.1. of the Revised UST Guidelines: -- Drinker Biddle did not represent the Committee in the 12 months prepetition. Drinker Biddle may represent in the future certain Committee members and/or their affiliates in their capacities as official committee members in other chapter 11 cases. -- The Committee approved prospective budget and staffing plan for the period from February 16, 2016 through May 31, 2016. The Bankruptcy Court will hold a hearing on the motion on April 6, 2016, at 12 noon. Objections were due March 29, 2016. Drinker Biddle can be reached at: Howard A. Cohen, Esq. DRINKER BIDDLE & REATH LLP 222 Delaware Ave., Ste. 1410 Wilmington, DE 19801-1621 Tel: (302) 467-4213 Fax: (302) 467-4201 About Horsehead Holding Corp. Horsehead Holding Corp. is the parent company of Horsehead Corporation, a U.S. producer of specialty zinc and zinc-based products and a leading recycler of electric arc furnace dust; The International Metals Reclamation Company, LLC ("INMETCO"), a leading recycler of metals-bearing wastes and a leading processor of nickel-cadmium (NiCd) batteries in North America; and Zochem Inc., a zinc oxide producer located in Brampton, Ontario. Horsehead, headquartered in Pittsburgh, Pa., has seven facilities throughout the U.S. and Canada. The Debtors currently employ approximately 730 full-time individuals. Horsehead Holding Corp., Horsehead Corporation, Horsehead Metal Products, LLC, The International Metals Reclamation Company, LLC, and Zochem Inc. filed Chapter 11 bankruptcy petitions (Bankr. D. Del. Case Nos. 16-10287 to 16-10291) on Feb. 2, 2016. The petition was signed by Robert D. Scherich as vice president and chief financial officer. Judge Christopher S. Sontchi is assigned to the case. The Debtors have engaged Kirkland & Ellis LLP as general counsel, Pachulski Stang Ziehl & Jones LLP as local counsel, RAS Management Advisors, LLC as financial advisor, Lazard Middle Market LLC as investment banker, Epiq Bankruptcy Solutions, LLC as claims and noticing agent and Aird & Berlis LLP as Canadian counsel. The Debtors disclosed total assets of $1 billion and total liabilities of $544.6 million. As of the Petition Date, the Debtors' consolidated long-term debt obligations totaled approximately $420.7 million. HORSEHEAD HOLDING: Taps Klehr Harrison as Harvey Tepner's Counsel ----------------------------------------------------------------- Horsehead Holding Corp., et al., ask the U.S. Bankruptcy Court for the District of Delaware for authority to employ Klehr Harrison Harvey Branzburg LLP as counsel to Harvey L. Tepner, the independent director of the Debtor Zochem, Inc., nunc pro tunc to February 18, 2016. Timothy Boates, Chief Restructuring Officer of Horsehead Holdings Corp., et al., tells the Court that the Independent Director requires independent counsel to advise and assist him in fulfilling his duties to Zochem Inc. Mr. Boates adds that for the Independent Director to meet his obligations as a fiduciary, it is essential that the Independent Director's review of matters related to Zochem Inc. be thorough, complete, independent and disinterested. The scope of Klehr Harrison's retention will be limited to advising the Independent Director. Klehr Harrison will not represent any other officer or director of the Debtors, nor the Debtors themselves, during the pendency of these Chapter 11 cases, nor at any time with respect to any matter in connection with the Debtors' restructuring. Significantly, Klehr Harrison will advise and assist the Independent Director in conducting an in-depth and rigorous analysis of the facts and issues relating to issues affecting Zochem Inc. in these cases, specifically, with respect to postpetition financing. Klehr Harrison will also assist the Independent Director in analyzing the appropriateness of any plan proposed in these cases. Klehr Harrison's current hourly rates for matters related to these cases are: Billing Range of Category Hourly Rates -------- ------------ Partners $360 - $700 Counsel $300 - $450 Associates $230 - $425 Paralegals $150 - $300 Consistent with the parties' Engagement Letter, Klehr Harrison will also be paid for its identifiable, non-overhead expenses incurred in connection with its proposed employment. Per the terms of the Engagement Letter, no retainer was paid to Klehr Harrison. As of the Petition Date, the Debtors or the Independent Director did not owe Klehr Harrison any amounts for legal services rendered before the Petition Date since the representation of the Independent Director did not commence until after the Petition Date. According to the declaration of Domenic E. Pacitti, Esq., a partner at Klehr Harrison, Klehr Harrison is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. Klehr Harrison can be reached at: Domenic E. Pacitti, Esq. KLEHR HARRISON HARVEY BRANZBURG LLP 919 N. Market Street, Suite 1000 Wilmington, DE 19801-3062 Telephone: (302) 552-5511 Facsimile: (302) 426-9193 E-mail: dpacitti@klehr.com About Horsehead Holding Corp. Horsehead Holding Corp. is the parent company of Horsehead Corporation, a U.S. producer of specialty zinc and zinc-based products and a leading recycler of electric arc furnace dust; The International Metals Reclamation Company, LLC ("INMETCO"), a leading recycler of metals-bearing wastes and a leading processor of nickel-cadmium (NiCd) batteries in North America; and Zochem Inc., a zinc oxide producer located in Brampton, Ontario. Horsehead, headquartered in Pittsburgh, Pa., has seven facilities throughout the U.S. and Canada. The Debtors currently employ approximately 730 full-time individuals. Horsehead Holding Corp., Horsehead Corporation, Horsehead Metal Products, LLC, The International Metals Reclamation Company, LLC, and Zochem Inc. filed Chapter 11 bankruptcy petitions (Bankr. D. Del. Case Nos. 16-10287 to 16-10291) on Feb. 2, 2016. The petition was signed by Robert D. Scherich as vice president and chief financial officer. Judge Christopher S. Sontchi is assigned to the case. The Debtors have engaged Kirkland & Ellis LLP as general counsel, Pachulski Stang Ziehl & Jones LLP as local counsel, RAS Management Advisors, LLC as financial advisor, Lazard Middle Market LLC as investment banker, Epiq Bankruptcy Solutions, LLC as claims and noticing agent and Aird & Berlis LLP as Canadian counsel. The Debtors disclosed total assets of $1 billion and total liabilities of $544.6 million. As of the Petition Date, the Debtors' consolidated long-term debt obligations totaled approximately $420.7 million. The Acting U.S. Trustee for Region 3 appointed seven creditors of Horsehead Holding Corp. to serve on the official committee of unsecured creditors. The Creditors' Committee is represented by Sharon L. Levine, Esq., Bruce Buechler, Esq., and Philip J. Gross, Esq., at Lowenstein Sandler LLP, in Roseland, New Jersey; and Howard A. Cohen, Esq., and Robert K. Malone, Esq., at Drinker Biddle & Reath LLP, in Wilmington, Delaware. HORSEHEAD HOLDING: Zochem OK'd as Canadian Foreign Representative ----------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware authorized Debtor Zochem Inc. to act as foreign representative for the estates of Horsehead Holding Corp., et al., in the Canadian Proceedings. As reported by The Troubled Company Reporter on Feb. 8, 2016, the Debtors asked the Bankruptcy Court to authorize debtor Horsehead Holding Corp. to act as foreign representative on behalf of their estates in the Canadian Proceedings. Zochem Inc., one of the Debtors, is a Canadian corporation and is a wholly owned, direct subsidiary of Horsehead Holding. Zochem owns and operates a zinc oxide production facility located in Brampton, Ontario, Canada. Horsehead Holdings, as the proposed Foreign Representative, intends to seek ancillary relief in Canada on behalf of the Debtors' estates pursuant to the Companies' Creditors Arrangement Act (Canada) R.S.C. 1985, c. C-36 as amended in the Ontario Superior Court of Justice (Commercial List) in Toronto, Ontario, Canada. The purpose of the ancillary proceedings is to request that the Canadian Court recognize the Debtors' Chapter 11 cases as "foreign main proceedings" under the applicable provisions of the CCAA in order to, among other things, protect the Debtors' assets and operations in Canada. "Authorizing Horsehead Holding to act as the Foreign Representative on behalf of the Debtors' estates in the Canadian Proceedings will allow coordination of these chapter 11 cases and the Canadian Proceedings, and provide an effective mechanism to protect and maximize the value of the Debtors' assets and estates," said Laura Davis Jones, Esq., at Pachulski Stang Ziehl & Jones LLP, counsel for the Debtors. About Horsehead Holding Horsehead Holding Corp. is the parent company of Horsehead Corporation, a U.S. producer of specialty zinc and zinc-based products and a leading recycler of electric arc furnace dust; The International Metals Reclamation Company, LLC ("INMETCO"), a leading recycler of metals-bearing wastes and a leading processor of nickel-cadmium (NiCd) batteries in North America; and Zochem Inc., a zinc oxide producer located in Brampton, Ontario. Horsehead, headquartered in Pittsburgh, Pa., has seven facilities throughout the U.S. and Canada. The Debtors currently employ approximately 730 full-time individuals. Horsehead Holding Corp., Horsehead Corporation, Horsehead Metal Products, LLC, The International Metals Reclamation Company, LLC, and Zochem Inc. filed Chapter 11 bankruptcy petitions (Bankr. D. Del. Case Nos. 16-10287 to 16-10291) on Feb. 2, 2016. The petition was signed by Robert D. Scherich as vice president and chief financial officer. Judge Christopher S. Sontchi is assigned to the case. The Debtors engaged Kirkland & Ellis LLP as general counsel, Pachulski Stang Ziehl & Jones LLP as local counsel, RAS Management Advisors, LLC as financial advisor, Lazard Middle Market LLC as investment banker, Epiq Bankruptcy Solutions, LLC as claims and noticing agent and Aird & Berlis LLP as Canadian counsel. The Debtors disclosed total assets of $1 billion and total liabilities of $544.6 million. As of the Petition Date, the Debtors' consolidated long-term debt obligations totaled approximately $420.7 million. The Acting U.S. Trustee for Region 3 appointed seven creditors of Horsehead Holding Corp. to serve on the official committee of unsecured creditors. The Creditors' Committee is represented by Sharon L. Levine, Esq., Bruce Buechler, Esq., and Philip J. Gross, Esq., at Lowenstein Sandler LLP, in Roseland, New Jersey; and Howard A. Cohen, Esq., and Robert K. Malone, Esq., at Drinker Biddle & Reath LLP, in Wilmington, Delaware. INSIGHT GLOBAL: Moody's Affirms 'B1' Corporate Family Rating ------------------------------------------------------------ Moody's Investors Service affirmed IG Investments Holdings, LLC's (the entity that indirectly owns Insight Global, LLC - collectively referred to as "Insight Global") B1 Corporate Family Rating ("CFR") and B1-PD Probability of Default Rating ("PDR"). In the same rating action, Moody's upgraded the rating on the company's first lien senior secured credit facilities, consisting of a $704 million term loan due 2021, a $37 million term loan due 2019, and a $60 million revolving credit facility expiring 2019, to Ba3 from B1. The rating outlook is stable. The rating action was prompted by Insight Global's contemplated transactions, which will include an equity purchase by Leonard Green & Partners and Crescent Capital from the existing equity sponsor Ares Management and other investors, and a proposed $170 million second lien senior secured term loan due 2023 (not rated). The combined proceeds of these transactions and cash on hand will be used to fund a distribution of approximately $685 million to the existing shareholders. The company is also pursuing an amendment to its existing first lien credit agreement to allow for incremental debt and a shareholder distribution, and to include additional permitted holders. The proposed transaction is credit negative and demonstrates the company's ongoing aggressive financial policies due to its willingness to increase debt to fund sizeable shareholder distributions. Moody's notes that the proposed transaction is the third distribution since the Ares Management LBO in October 2012. Insight Global's pro forma debt-to-EBITDA leverage is estimated to increase to approximately 6.0x (inclusive of Moody's standard adjustments) from approximately 4.9x as of December 31, 2015, while pro forma EBITA to interest coverage is estimated to decline to 2.1x from about 2.9x. Moody's affirmation of Insight Global's CFR nevertheless reflects the company's track record of solid revenue and earnings growth and the resulting consistent ability to de-lever. Moody's expects Insight Global to continue generating revenue growth at steady margins amidst a relatively strong operating environment, allowing the company to de-lever through EBITDA growth to levels that are more supportive of the B1 rating. Moody's projects adjusted debt to EBITDA to decline below 5.0x, and EBITA to interest coverage to improve towards 3.0x over the next 12 to 18 months. The rating revision to the first lien credit facilities reflects the introduction of second lien debt to Insight Global's capital structure, and the loss absorption provided by this instrument. The following summarizes the rating actions for IG Investments Holding, LLC: Corporate Family Rating, affirmed at B1; Probability of Default Rating, affirmed at B1-PD; $713 million ($704 million outstanding) first lien senior secured term loan due 2021, upgraded to Ba3 (LGD3) from B1 (LGD3); $38 million ($37 million outstanding) first lien senior secured term loan due 2019, upgraded to Ba3 (LGD3) from B1 (LGD3); $60 million first lien senior secured revolving credit facility due 2019, upgraded to Ba3 (LGD3) from B1 (LGD3); The rating outlook is stable. All ratings are subject to the execution of the transaction as currently proposed and Moody's review of final documentation. The instrument ratings are subject to change if the proposed capital structure is modified. INTERNATIONAL TECHNICAL: Gets Court Approval to Hire Dinsmore ------------------------------------------------------------- International Technical Coatings Inc. received court approval to hire Dinsmore & Shohl LLP as its special counsel. The order, issued by Judge Madeleine Wanslee, allowed ITC to hire the firm to help the company resolve its dispute with claimant Miriam Solorio Vargas. The approval is "without prejudice" to the rights of the official committee of unsecured creditors to assert that the company should not pay for obligations of its subsidiary ITC Manufacturing LLC, according to the filing. The committee had earlier opposed the company's bid to hire the firm, arguing that one of the Dinsmore lawyers was already employed by ITC Manufacturing in connection with Mrs. Vargas' claim. "It is entirely unclear what additional services Dinsmore would be performing for the estate," the committee said in a court filing. The committee also questioned the use of estate assets to pay ITC Manufacturing, saying the company is a "non-debtor." About Int'l Technical Coatings International Technical Coatings, Inc. is a Phoenix, Arizona-based steel wire manufacturer. It has facilities located in Phoenix, Arizona and Columbus, Ohio. ITC filed a Chapter 11 bankruptcy petition (Bank. D. Ariz. Case No. 15-14709) on Nov. 18, 2015. John Caldwel, the chairman, signed the petition. Judge Madeleine C. Wanslee is assigned the case. Bank of America Bank, N.A., which is owed more than $25.7 million in outstanding matured, defaulted loan obligations, applied for the appointment of a receiver over ITC on Oct. 28, 2015. The Maricopa County Superior Court held an initial hearing on the matter on Nov. 4. A final hearing on the appointment of a receiver was scheduled for Nov. 18 at 1:30 p.m. Unable to secure an agreement with the Bank prior to the scheduled hearing, ITC filed for Chapter 11 protection. In its petition, the Debtor estimated assets of $50 million to $100 million and liabilities of more than $10 million. The Debtor tapped Osborn Maledon, P.A., as bankruptcy counsel. Morris Anderson & Associates, Ltd. serves as its financial advisor. The Office of the U.S. Trustee appointed seven creditors to the official committee of unsecured creditors. Stinson Leonard Street, LLP represents the committee. The Law Offices of Michael W. Carmel, Ltd. serves as its conflicts counsel. The Committee retained KRyS Global, USA, as its financial advisor. Secured creditor Bank of America is represented by Robert J. Miller, Esq., Kyle S. Hirsch, Esq., and Amanda L. Cartwright, Esq., at Bryan Cave LLP. INVENTIV HEALTH: Paul Meister Resigns as Director ------------------------------------------------- As disclosed in a regulatory filing with the Securities and Exchange Commission, Mr. Paul Meister, director of inVentiv Health, Inc., notified the Company on March 30, 2016, that he would resign from the Company's Board of Directors effective immediately. 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. INVERSIONES ARAXI: Case Summary & 11 Unsecured Creditors -------------------------------------------------------- Debtor: Inversiones Araxi Group Corp dba Motel The Rose Box 565 Salinas, PR 00751 Case No.: 16-02428 Chapter 11 Petition Date: March 31, 2016 Court: United States Bankruptcy Court District of Puerto Rico (Ponce) Judge: Hon. Edward A Godoy Debtor's Counsel: Gerardo L. Santiago Puig, Esq. GSP LAW, P.S.C. Doral Bank Plaza Suite 801 33 Resolucion St San Juan, PR 00920 Tel: 787-777-8000 Fax: 787-767-7107 E-mail: gsantiagopuig@gmail.com Estimated Assets: $0 to $50,000 Estimated Liabilities: $1 million to $10 million The petition was signed by Luis J. Perez Delgado, president. A list of the Debtor's 11 largest unsecured creditors is available for free at http://bankrupt.com/misc/prb16-02428.pdf IRONSTONE GROUP: Delays 2015 Annual Report Over CFO Resignation --------------------------------------------------------------- Ironstone Group, Inc. filed with the U.S. Securities and Exchange Commission a Notification of Late Filing on Form 12b-25 with respect to its annual report on Form 10-K for the year ended Dec. 31, 2015, stating that: "Due to the period of time required for a new CFO to be selected following resignation of the previous CFO on January 8, 2016, the Company has been unable to prepare annual financial statements and commence the audit process in a timely fashion. The selection process had not been completed as of March 30, 2016, the due date of the Form 10-K. Also, due to the untimely receipt of an updated private investment valuation, additional time is required to revise the financial statements to reflect the changes in valuation." About Ironstone Group San Francisco, Calif.-based Ironstone Group, Inc., and subsidiaries have no operations but are seeking appropriate business combination opportunities. Ironstone reported a net loss of $259,000 for the year ended Dec. 31, 2014, compared to a net loss of $170,000 for the year ended Dec. 31, 2013. As of Sept. 30, 2015, the Company had $2.96 million in total assets, $1.88 million in total liabilities and $1.07 million in total stockholders' equity. Burr Pilger Mayer, Inc., in San Francisco, California, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2014, citing that the Company has recurring net losses and negative cash flows from operations. These factors raise substantial doubt about the Company's ability to continue as a going concern. JAMES RIVER COAL: Court Confirms 2nd Amended Liquidation Plan ------------------------------------------------------------- The U.S. Bankruptcy Court for the Eastern District of Virginia confirmed James River Coal Company, et al.'s Second Amended Plan of Liquidation, which promises a 0.5% or 1% recovery for general unsecured creditors. As reported by the Troubled Company Reporter on March 17, 2016, the Plan is the product of a highly negotiated agreement among the Debtors and the Official Committee of Unsecured Creditors. All Classes receiving distributions under the Plan have voted to accept the Plan. These classes were entitled to vote to accept or reject the Plan: Classes Description ------- ----------- Classes 1C; 2C & 34C 7.875% Senior Notes Parent Claims; 7.875% Senior Notes Guarantee Claims Classes 1D; 2D-34D 10.00% Conv. Senior Notes Parent Claims; 10.00% Conv. Senior Notes Guarantee Claims Classes 1E; 2E- 34E PBGC Parent Claims; PBGC Subsidiary Claims Classes 1F & 34F General Unsecured Claims The Debtors submitted that the Plan satisfies all of the confirmation requirements of the Bankruptcy Code and the Federal Rules of Bankruptcy Procedure and should be confirmed. The Debtors pointed out that the Plan has not drawn any feasibility objections. The Plan provides for the merger and dissolution of the Debtors and the designation of the Plan Administrator to distribute Cash or other consideration to Holders in accordance with the Plan Administrator Agreement and the terms of the Plan. The Plan Supplement provides that Byron Advisors, LLC will serve as Plan administrator. The Plan Administrator can be reached at: Byron Advisors, LLC 1623 Third Avenue, Suite 20A New York, NY 10128 Attn: William B. Murphy Telephone: (804) 783-6292 E-mail: william.murphy@jamesrivercoal.com A copy of the Second Amended Plan of Liquidation is available at http://bankrupt.com/misc/James_River_1688_Mod_Plan.pdf A copy of the Debtors' memorandum in support of confirmation of the Plan is available at http://bankrupt.com/misc/James_River_1690_Plan_Conf_Memo.pdf According to the solicitation version of the Disclosure Statement filed Feb. 4, 2016, the projected recoveries under the Plan are: Projected Class & Description Proposed Treatment Recovery ------------------- ------------------ --------- 1A-34A Other Priority Claims Unimpaired. Payment in full in Cash; or other treatment that will render the Claim Unimpaired. 100% 1B-34B Secured Claims Unimpaired. Payment in full in Cash, to the extent of the value of the holder's secured interest in such Collateral; or other treatment that will render the Claim Unimpaired. 100% 1C; 2C-34C 7.875% Senior Notes Parent Claims; 7.875% Senior Notes Guarantee Claims Impaired. Subject to Section 3.2(c) of the Plan, each Holder of an Allowed 7.875% Senior Notes Parent Claim shall be entitled to its Ratable Share of Total Distributable Cash. 3.8% 1D; 2D-34D 10.00% Convertible Senior Notes Parent Claims; 10.00% Convertible Senior Notes Guarantee Claims Impaired. Subject to Section 3.2(d) of the Plan, each Holder of an Allowed 10.00% Convertible Senior Notes Parent Claim will be entitled to its Ratable Share of Total Distributable Cash. 1.75% 1E; 2E-34E PBGC Parent Claims; PBGC Subsidiary Claims Impaired. Subject to Section 3.2(e) of the Plan, on account of any Allowed PBGC Parent Claim, PBGC shall be entitled to such Allowed PBGC Parent Claim's Ratable Share of Total Distributable Cash. 3.8% 1F-34F General Unsecured Claims Impaired. Subject to Section 3.2(f), each Holder of an Allowed General Unsecured Claim shall be entitled to its Ratable Share of Total Distributable Cash. 1.0% (Debtor Group 1) Or 0.5% (Debtor Group 2) 1G-34G Subordinated Claims Impaired. No distribution. 0% 1H-34H Intercompany Claims Impaired. Cancelled; no distribution. 0% 1I Interests in James River Impaired. No distribution. 0% 1J; 2I-34I Interests in Subsidiary Debtors Unimpaired. Reinstated. 100% A copy of the Disclosure Statement filed Feb. 3, 2016, is available for free at http://bankrupt.com/misc/James_River_1639_Solicit_DS.pdf About James River Coal James River Coal Company is a producer and marketer of coal in the Central Appalachia ("CAPP") and the Midwest coal regions of the United States. James River's principal business is the mining, preparation and sale of metallurgical coal, thermal coal (which is also known as steam coal) and specialty coal. James River and 33 of its affiliates filed Chapter 11 bankruptcy petitions (Bankr. E.D. Va. Case Nos. 14-31848 to 14-31886) in Richmond, Virginia, on April 7, 2014. The petitions were signed by Peter T. Socha as president and chief executive officer. Judge Kevin R. Huennekens oversees the Chapter 11 cases. On the petition date, James River Coal disclosed total assets of $1.06 billion and total liabilities of $818.6 million. The Debtors are represented by Tyler P. Brown, Esq., Henry P. (Toby) Long, III, Esq., and Justin F. Paget, Esq. at Hunton & Williams LLP of Richmond, VA and Marwill S. Huebner, Esq, Brian M. Resnick, Esq., and Michelle M. McGreal, Esq. at Davis Polk & Wardwell LLP of New York, NY. Kilpatrick Townsend & Stockton LLP serves as the Debtors' special counsel. Perella Weinberg Partners L.P. is the Debtors' financial advisor. Deutsche Bank Securities Inc. serves as the Debtors' investment banker and M&G advisor. Epiq Bankruptcy Solutions, LLC, acts as the debtors' notice, claims and administrative agent. The U.S. Trustee for Region 4 has appointed five creditors to the Official Committee of Unsecured Creditors. Michael S. Stamer, Esq., Alexis Freeman, Esq., and Jack M. Tracy II, Esq., at Akin Gump Strauss Hauer & Feld LLP; and Jonathan L. Gold, Esq., Christopher L. Perkins, Esq., and Christian K. Vogel, Esq., at LeClairRyan. The Debtors, in August 2014, won authority to sell the Hampden Mining Complex (including the assets of Logan & Kanawha Coal Company, LLC), the Hazard Mining Complex (other than the assets of Laurel Mountain Resources LLC) and the Triad Mining Complex for $52 million plus the assumption of certain environmental and other liabilities, to a unit of Blackhawk Mining. The Buyer is represented by Mitchell A. Seider, Esq., and Charles E. Carpenter, Esq., at Latham & Watkins LLP. * * * James River Coal has filed a bankruptcy-exit Plan that contemplates the liquidation and dissolution of the Debtors and the resolution of all outstanding claims against, and interests in, the Debtors. A copy of the Disclosure Statement for the Liquidating Plan filed Dec. 22, 2015, is available for free at: http://bankrupt.com/misc/James_River_1565_DS_Liq_Plan.pdf KEITHVILLE WELL: Case Summary & 20 Largest Unsecured Creditors -------------------------------------------------------------- Debtor: Keithville Well Drilling & Services, LLC 11719 Mansfield Road Keithville, LA 71047 Case No.: 16-10545 Chapter 11 Petition Date: April 1, 2016 Court: United States Bankruptcy Court Western District of Louisiana (Shreveport) Judge: Hon. Jeffrey P. Norman Debtor's Counsel: Robert W. Raley, Esq. AYRES, SHELTON, WILLIAMS & PAINE, LLC 333 Texas Street, 1400 Regions Tower Shreveport, LA 71101 Tel: (318) 227-3500 Fax: (318) 227-3822 Email: robertraley@arklatexlaw.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Jeffrey C. Talley, managing member. A list of the Debtor's 20 largest unsecured creditors is available for free at http://bankrupt.com/misc/lawb16-10545.pdf KIRWAN OFFICES: Lapidem, Mascini Want Plan Exclusivity Terminated ----------------------------------------------------------------- Petitioning creditors Lapidem Ltd. and Mascini Holdings Limited ask the U.S. Bankruptcy Court for the Southern District of New York, to terminate Kirwan Offices S.A.R.L.'s exclusive periods to propose a Chapter 11 plan. Lapidem and Mascini are 99.9944% owners, and holders of over 99% of the debt of debtor Kirwan Offices S.A.R.L. He further contends that Kirwan's only asset is a Russian subsidiary, OOO Promneftstroy ("PNS"). Jay M. Goffman, Esq., at Skadden, Arps, Slate, Meagher & Flom, LLP, in New York, New York, recounts that Lapidem and Mascini, together with other parties, came together to make an investment through Kirwan and PNS: the acquisition of 100% of the shares of Yukos Finance B.V. ("Yukos Finance"), a Dutch entity, in an auction by the bankruptcy estate of its parent company, OAO "Yukos Oil Company" ("Yukos Oil"). A third party, Stephen Lynch, was also a party to the transaction, albeit in a limited role. On Aug. 15, 2007, PNS successfully participated in the Yukos Finance auction with a winning bid of $309 million. The entire purchase price was funded by Lapidem and Mascini through loans provided in 2007 and 2011 to Kirwan, who in turn loaned the proceeds on to PNS. Those loans remain unpaid. Shortly after PNS won the auction, it became embroiled in litigation with entities connected to the former shareholders and management of Yukos Oil. Over the ensuing year, highly complex litigation was spawned in the Netherlands, Russia, the United Kingdom and several courts in the United States. The litigation lasted over eight years and has been funded exclusively by Lapidem and Mascini in the aggregate amount of over $35 million, in the form of additional loans to Kirwan that also remain unpaid. To this day, PNS has still not succeeded in acquiring quiet title to the shares of Yukos Finance. Mr. Goffman tells the Court that PNS' litigation adversaries have recently made an offer to finally fully settle their litigation for an amount equal to approximately $137.5 million. Mr. Goffman tells the Court that while majority of Kirwan's managers agree that settlement of the litigation on the said terms is in the best interests of Kirwan and its stakeholders, Mr. Stephen Lynch does not agree. Mr. Goffman says Mr. Lynch is actively interfering with settlement efforts in order to obtain a payday for himself. He contends that Mr. Lynch has demanded that there be no settlement discussions whatsoever without his consent, and that he would consent to settlement if he is bought out for $35 million, even though his interests are below $345 million in debt, and will be over $200 million under water if the proposed settlement is consummated. Mr. Goffman tells the Court that Lapidem and Mascini are prepared to propose a plan of liquidation that will provide a vehicle for resolving, for the benefit of all parties, the global litigation that has engulfed PNS and Yukos Finance for the last eight years, and that will concomitantly bring to an end the meritless governance issues that Mr. Lynch has created to feather his own nest. He further tells the Court that Lapidem and Mascini request prompt termination of exclusivity so that they can pursue their plan forthwith. Lapidem Ltd. and Mascini Holdings Limited are represented by: Jay M. Goffman, Esq. Mark A. McDermott, Esq. Suzanne Lovett, Esq. SKADDEN, ARPS, SLATE, MEAGHER & FLOM LLP Four Times Square New York, NY 10036 Telephone: (212)735-3000 E-mail: jay.goffman@skadden.com mark.mcdermott@skadden.com suzanne.lovett@skadden.com LATTICE INC: Delays 2015 Form 10-K for Review --------------------------------------------- Lattice Incorporated notified the U.S. Securities and Exchange Commission that its annual report on Form 10-K could not be filed within the prescribed time period because of a delay experienced by the Company in compiling required information to complete its financial statements. As a result, the Company's auditors require additional time to complete its review of the Company's financial statements. About Lattice Inc. Pennsauken, New Jersey-based Lattice Incorporated provides telecommunications services to correctional facilities and specialized telecommunication service providers in the United States. Lattice Inc. reported a net loss of $1.8 million on $8.94 million of revenue for the year ended Dec. 31, 2014, compared to a net loss of $1 million on $8.26 million of revenue in 2013. As of Sept. 30, 2015, the Company had $4.88 million in total assets, $8.84 million in total liabilities and a total shareholders' deficit of $3.96 million. Rosenberg Rich Baker Berman & Company, in Somerset, New Jersey, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2014, noting that the Company has a working capital deficit and requires additional working capital to meet its current liabilities. The auditors said these factors raise substantial doubt about the Company's ability to continue as a going concern. LEE STEEL: Changes Name to LSC Liquidation Following Asset Sale --------------------------------------------------------------- The U.S. Bankruptcy Court for the Eastern District of Michigan authorized Lee Steel Corporation to change its name to LSC Liquidation, Inc., following the sale of substantially all of its assets. The Court also authorized the duly appointed officer of Lee Steel to execute and cause the filing of the Certificate of Amendment to the Certificate of Incorporation with the Office of the Secretary of State of the State of Michigan. As reported by the Troubled Company Reporter on Oct. 16, 2015, Lee Steel Corporation asked the Hon. Marci B. McIvor for permission to change its name to LSC Liquidation Inc. as contemplated by the previously approved sale transaction with Union Partners I LLC. The other debtor-affiliates also sought permission to change their names. Lee Steel saids that effective Sept. 18, 2015, the sale to Union Partners closed and the Debtors ceased operations and commenced the process of winding down their affairs, turning their attention to confirming a plan and completing the final administration of their Chapter 11 cases. Pursuant to the sale order, the Court authorized the Debtors to sell substantially all of their assets located at their Wyoming, Michigan facility, including intellectual property, to Union Partners. The Debtors believe the name change is necessary to enable them to fully comply with the terms of the asset purchase agreement and the sale order. About Lee Steel Novi, Michigan-based Lee Steel Corp., provides flat rolled steel, including hot rolled steel, cold rolled steel, and exposed coated products for automotive and other manufacturing industries. Lee Steel and 2 affiliated companies -- Taylor Industrial Properties, L.L.C., and 4L Ventures, LLC -- filed for separate bankruptcy protection (Bankr. D. Del. Case No. 15-45784) on April 13, 2015. The Hon. Marci B. McIvor presides over the cases. Joshua A. Gadharf, Esq., at McDonald Hopkins PLC, represents the Debtor. Huron Business Advisory, serves as financial advisor; and Epiq Bankruptcy Solutions serves as claims and noticing agent. Lee Steel disclosed $63,206,282 in total assets and $62,659,806 in total liabilities. Hilco Global has purchased the steel processing facility located at the Lee Steel Corporation site in Romulus, Michigan. The deal which was approved in U.S. Bankruptcy Court includes a 200,000 square foot plant and all of the steel processing equipment located at that site. The sale is expected to close in mid-September. The U.S. Trustee for Region 9 appointed three creditors to serve on the official committee of unsecured creditors. Conway Mackenzie, Inc. serves as its financial advisor. LEE STEEL: Wants Union Partners to Give Access to Information ------------------------------------------------------------- The Official Committee of Unsecured Creditors of Lee Steel Corporation asks the U.S. Bankruptcy Court for the Eastern District of Michigan, Southern Division, to require Union Partners I LLC to provide the Committee, Debtors, and their successors access to debtors LSC Liquidation, Inc., et al.'s books, records, and electronically stored information. The Creditors Committee contends that Union Partners is acting in bad faith and in violation of the Union Partners Sale Order by unjustifiably refusing to provide the Committee and Debtors access to the requested documents and information. The Committee seeks access to documents and information that are directly relevant to the Chapter 5 causes of action currently being pursued by it. The Committee relates that the Sale Agreement, which was approved by the Court's Union Partners Sale Order, obligates Union Partners to afford the Debtors, their successors and assignees, and the Official Committee, reasonable access to such books, records and other data. The Union Partners Sale Order related to the sale of substantially all of the Debtors' assets located in Wyoming, Michigan. The Creditors Committee tells the Court that the Debtors' electronically stored information existing as of the sale closing date was migrated by Union Partners to a server controlled by Union Partners. It further tells the Court that the Committee, with the Debtors' consent, requested that Union Partners provide the Committee access to the server. The Committee avers that Union Partners initially agreed to provide access, but then abruptly changed its mind, stating that "Union Partners also discovered the creditors committee is objecting to an amendment to the purchase and sale agreement or court order approving the sale of the Lee Steel assets providing for assumption of the United Healthcare insurance policy. Since this may adversely affect their employees, they will not provide you access to their server." The Official Committee of Unsecured Creditors of Lee Steel Corporation is represented by: Scott A. Wolfson, Esq. Anthony J. Kochis, Esq. WOLFSON BOLTON PLLC 3159 Livernois, Suite 275 Troy, MI 48083 Telephone: (248)247-7105 Facsimile: (248)247-7099 E-mail: akochis@wolfsonbolton.com About Lee Steel Corporation Novi, Michigan-based Lee Steel Corp., provides flat rolled steel, including hot rolled steel, cold rolled steel, and exposed coated products for automotive and other manufacturing industries. Lee Steel and 2 affiliated companies -- Taylor Industrial Properties, L.L.C., and 4L Ventures, LLC -- filed for separate bankruptcy protection (Bankr. D. Del. Case No. 15-45784) on April 13, 2015. The Hon. Marci B. McIvor presides over the cases. Joshua A. Gadharf, Esq., at McDonald Hopkins PLC, represents the Debtor. Huron Business Advisory, serves as financial advisor; and Epiq Bankruptcy Solutions serves as claims and noticing agent. Lee Steel disclosed $63,206,282 in total assets and $62,659,806 in total liabilities. Hilco Global has purchased the steel processing facility located at the Lee Steel Corporation site in Romulus, Michigan. The deal which was approved in U.S. Bankruptcy Court includes a 200,000 square foot plant and all of the steel processing equipment located at that site. The sale is expected to close in mid-September. The U.S. Trustee for Region 9 appointed three creditors to serve on the official committee of unsecured creditors. Conway Mackenzie, Inc. serves as its financial advisor. * * * The Debtors sold their steel processing facility located in Romulus, Michigan, to Hilco Global for $14 million. The deal which was approved in U.S. Bankruptcy Court includes a 200,000 square foot plant and all of the steel processing equipment located at that site. Union Partners I, LLC, won an auction for the Debtors' Wyoming facility and working capital assets with a $23.6 million offer. Effective Sept. 18, 2015, the sale to Union Partners closed, and the Debtors ceased operations and commenced the process of winding down their affairs. The Debtors changed their names to LSC Liquidation Inc., et al., following the sale. LEO MOTORS: Reports $4.49 Million Net Loss for 2015 --------------------------------------------------- Leo Motors, Inc., filed with the Securities and Exchange Commission its annual report on Form 10-K disclosing a net loss of US$4.49 million on US$4.29 million of revenues for the year ended Dec. 31, 2015, compared to a net loss of US$4.48 million on US$693,000 of revenues for the year ended Dec. 31, 2014. As of Dec. 31, 2015, Leo Motors had US$6.24 million in total assets, US$5.67 million in total liabilities and US$577,000 in total equity. John Scrudato CPA, in Califon, New Jersey, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2015, noting that the Company has incurred significant accumulated deficits, recurring operating losses and a negative working capital. This and other factors raise substantial doubt about the Company's ability to continue as a going concern. A full-text copy of the Form 10-K is available for free at: http://is.gd/1Hsl3q About Leo Motors Headquartered in Hanam City, Gyeonggi-do, Republic of Korea, Leo Motors, Inc., a Nevada corporation, is currently engaged in the research and development of multiple products, prototypes and conceptualizations based on proprietary, patented and patent pending electric power generation, drive train and storage technologies. In 2011, the Company determined its investment in Leo B&T Inc. an investment account was impaired and recorded an expense of $4.5 million. During the 2012 year the Company had a net non operating income largely from the result of the forgiveness of debt for $1.3 million. LIME ENERGY: Incurs $4.44 Million Net Loss in 2015 -------------------------------------------------- Lime Energy Co. filed with the Securities and Exchange Commission its annual report on Form 10-K disclosing a net loss available to common stockholders of $4.44 million on $113 million of revenue for the year ended Dec. 31, 2015, compared to a net loss available to common stockholders of $5.60 million on $58.8 million of revenue for the year ended Dec. 31, 2014. "Lime Energy is well positioned to provide much needed services to small business customers which meet the changing needs of the electric utility industry," said Adam Procell, Lime Energy president & CEO. "As this industry takes shape, we will continue to make the investments which position us to be a leader in the space, with a differentiated offering. We will remain at the forefront of serving utility clients and their small business customers." As of Dec. 31, 2015, the Company had $57.6 million in total assets, $41.8 million in total liabilities, $10.7 million in contingently redeemable series C preferred stock and $5.09 million in total stockholders' equity. As of Dec. 31, 2015, the Company had cash and cash equivalents of $6.7 million (including restricted cash of $1.3 million), compared to cash of $6.0 million (including restricted cash of $500 thousand) as of Dec. 31, 2014. The Company's contractual obligations as of Dec. 31, 2015, totaled $5.0 million in future lease obligations. The Company's contractual commitments for 2016 total approximately $720 thousand, which it believes will be able to satisfy through operating cash flows and its cash reserve. A full-text copy of the Form 10-K is available for free at: http://is.gd/G8qjvr About Lime Energy Headquartered in Huntersville, North Carolina, Lime Energy Co. -- http://www.lime-energy.com/-- is engaged in planning and delivering clean energy solutions that assist its clients in their energy efficiency and renewable energy goals. The Company's solutions include energy efficient lighting upgrades, energy efficient mechanical and electrical retrofit and upgrade services, water conservation, building weatherization, on-site generation and renewable energy project development and implementation. The Company provides energy solutions across a range of facilities, from high-rise office buildings, distribution facilities, manufacturing plants, retail sites, multi-tenant residential buildings, mixed use complexes, hospitals, colleges and universities, government sites to small, single tenant facilities. LIONS GATE: Moody's Affirms Ba3 CFR & Changes Outlook to Negative ----------------------------------------------------------------- Moody's Investors Service changed Lions Gate Entertainment Corp.'s rating outlook to negative from stable and affirmed its Ba3 Corporate Family rating, Ba3-PD Probability of Default rating and the Ba3 senior secured debt rating. The Speculative Grade Liquidity (SGL) rating was lowered from SGL-2 to SGL-3. Issuer: Lions Gate Entertainment Corp. Affirmations: Probability of Default Rating, Affirmed Ba3-PD Corporate Family Rating, Affirmed Ba3 Senior Secured Bank Credit Facility, Affirmed Ba3, to (LGD4) from (LGD3) Senior Secured Regular Bond/Debenture, Affirmed Ba3, to (LGD4) from (LGD3) Lowered: Speculative Grade Liquidity Rating, Lowered to SGL-3 from SGL-2 Outlook Actions: Outlook, Changed To Negative From Stable RATINGS RATIONALE The change in the company's rating outlook is driven by higher than expected debt levels for the rating as well as weaker than expected operating results at its Motion Pictures segment, which accounts for 74% of consolidated revenues, due to underperformance of its slate of films over the last couple of months, including disappointing box office numbers for its latest production Allegiant (the third film in the Divergent series). Over the last two years the company used free cash flow to execute shareholder payouts ($178 million in Fiscal 2015 and $34 million in the first three quarters of Fiscal 2016), while increasing gross debt well above management's $500 million target level, which is the debt level Moody's had incorporated in its ratings assumptions. These shareholder distributions have used the company's financial resources which could have otherwise been used to maintain financial flexibility during difficult periods. As a result of an increase in debt and deterioration in EBITDA, Moody's adjusted debt-to-EBITDA has climbed from 3.9x at 3/31/2015 to approximately 9.2x at 12/31/2015. The rapid increase in leverage goes to show that it is imperative for companies in the inherently volatile motion picture industry to operate with low debt levels given the high business risk resulting from the high probability for occasional weak box office performance. The high debt burden and weak operating performance together have weighed on liquidity and resulted in credit metrics deteriorating to levels that warrant a lower CFR to "B" levels. However, the company recently indicated via a regulatory filing that it is interested in exploring a potential mutually beneficial combination with Starz, LLC (Ba2, Stable). The filing states that a potential merger would involve stock or a combination of stock and cash. The final credit rating outcomes in a merger would depend on multiple qualitative and quantitative factors such as amount of debt used to fund the deal, asset dispositions, cost and revenue synergies and management's commitment to debt reduction and credit ratings, among other factors. However, Moody's believes that a merger with Starz would be strategically beneficial due to the potential for collaboration between the two companies. Moody's believes the deal will enable Lionsgate to leverage its production capabilities to benefit from the increasing demand for original programming and theatrical output which are important to Starz, and thereby boost revenues and profitability for the combined entity. The deal will also bring financial advantages to Lionsgate as Starz has a stronger balance sheet with low leverage of 2.5x (Moody's adjusted), a good track record of stable profitability and generates strong annual cash flows of over $200 million. Moody's notes that if the two companies agree to a deal, Lionsgate could retain a "Ba" rating if management is committed to its credit ratings and the transaction is funded with stock, a moderate amount of new debt and proceeds from potential asset sales. Moody's will continue to monitor developments during upcoming quarters as they unfold and evaluate the impact on Lionsgate's credit profile. Moody's notes that Lionsgate's credit profile continues to be supported by its disciplined approach to film production and focus on low to mid-budget films. The company's track record of negotiating co-production agreements and acquiring or producing niche films which cost significantly lower than typical big-budget tent pole movies, reduce financial exposure associated with motion picture production. The rating also reflects Lionsgate's ability to generate good cash flows from its library consisting of over 16,000 film titles and television episodes. Additionally, we also expect continued operating momentum in the company's television production business to support long-term growth. The rating is supported by the company's significant asset value, which includes its equity investments such as EPIX, and the growing contribution of its television production and syndication businesses. The SGL-3 rating reflects Moody's expectations that Lionsgate will have adequate liquidity over the next 12-18 months. As of 12/31/2015, the company had $88 million of cash on its balance sheet and no amounts outstanding under its $800 million senior secured revolving credit facility. Moody's expects Lionsgate will be reliant on its revolver to fund film development and marketing spending and will generate lower free cash flow than historical levels over the next twelve months due to recent weakness in film slate performance. Moody's anticipates that the company will maintain sufficient cushion under its secured debt covenant and continue to prudently manage its forward-looking film spending and liquidity ratios, to ensure access to its credit facility. Moody's believes that Lionsgate's operating performance will improve in Fiscal 2017 as a result of a more diversified slate of film titles (relative to Fiscal 2016) and continued strong demand for its television programming. Accordingly, we estimate that leverage will decline considerably from current levels over the next 12-18 months but will remain above our 3.0x sustained leverage downgrade threshold over the intermediate term absent a Starz merger. Moody's cautions that the Ba3 CFR could be downgraded if a deal with Starz fails to take place or if the company's upcoming new film productions perform poorly at the box office, resulting in further deterioration in credit metrics. Further, since the rating outlook is negative, Moody's does not anticipate a positive rating action in the near term. The principal methodology used in these ratings was Business and Consumer Service Industry published in December 2014. Lions Gate Entertainment Corp (parent of Lions Gate Entertainment Inc.), domiciled in British Columbia, Canada (headquartered in Santa Monica, CA), is a motion picture and television studio with a diversified presence in the production and distribution of motion pictures, television programming, home entertainment, video-on-demand and digitally delivered content. The company operates through two reporting segments: Motion Pictures (74%) and Television Production (26%). Consolidated revenues for the LTM period ended Dec. 31, 2015, were about $2.2 billion. LIQUID HOLDINGS: Case Converted to Chapter 7 Liquidation -------------------------------------------------------- BankruptcyData reported that the U.S. Bankruptcy Court approved Liquid Holdings Group's motion to convert its Chapter 11 reorganization cases to liquidation under Chapter 7. As previously reported, "The Debtors lack sufficient liquidity to make pursuit of a sale or liquidating plan an appropriate exercise. Moreover, despite extensive prepetition marketing, no party has committed to serve as a stalking horse bidder in a sale process. Should the Chapter 11 cases not convert the Debtors believe that they will be unable to continue to pay administrative expenses as they come due. Engaging in a chapter 11 liquidating plan process will unnecessarily deplete the Debtors' remaining assets and would be unlikely to provide a meaningful return to unsecured creditors. Rather, the interests of the Debtors' estates will best be served by conversion of these Chapter 11 cases to cases under chapter 7 of the Bankruptcy Code. By converting the cases, the remaining assets of the estates can be efficiently and effectively liquidated by a chapter 7 trustee and distributed to stakeholders….While the Debtors believe the Actions fall under Bankruptcy Code Section 363(c)(1) in that they are being done in the ordinary course of business, in an abundance of caution and to the extent necessary, the Debtors seek confirming authority under Bankruptcy Code section 363 to implement these Actions." The management solutions' provider filed for Chapter 11 protection on Jan. 27, 2016 listing $28 million in prepetition assets. About Liquid Holdings Group Liquid Holdings Group, Inc. (otc pink:LIQD) -- http://www.liquidholdings.com-- a SaaS provider of investment management solutions for the buy side, on Jan. 28 disclosed that it and its subsidiary Liquid Prime Holdings, LLC, each filed a voluntary petition in the United States Bankruptcy Court for the District of Delaware seeking relief under the provisions of Chapter 11 of the United States Bankruptcy Code. The cases are Liquid Holdings Group, Inc., Case No. 16-10202 (Bankr. D. Del.) and Liquid Prime Holdings, LLC, Case No. 16-10203 (Bankr. D. Del.). The Company's counsel in Chapter 11 is Blank Rome LLP. The Company has engaged Carl Marks Advisory Group, LLC as its bankruptcy financial advisor and SenaHill Advisors, LLC as its investment banker. MARINA BIOTECH: Provides 2015 Year-End Financials and Update ------------------------------------------------------------ Marina Biotech, Inc. reported net income applicable to common stckholders of $2.64 million on $680,000 of license and other revenue for the year ended Dec. 31, 2015, compared to a net loss applicable to common stockholders of $12.47 million on $500,000 of license and other revenue for the year ended Dec. 31, 2014. As of Dec. 31, 2015, Marina Biotech had $7.59 million in total assets, $7.33 million in total liabilities and $263,000 in total stockholders' equity. "During 2015, we continued to see the clinical advancement of our SMARTICLES delivery technology through licensees ProNAi Therapeutics and Mirna Therapeutics, as well as the expansion of our intellectual property estate with key patent issuances in the U.S., Europe and Japan," stated J. Michael French, president and chief executive officer of Marina Biotech. "In addition, the past few months have presented us with some great traction within the nucleic acid sector. We recently entered into two agreements that will advanced our delivery technologies in the emerging field of gene editing. These two transactions represent the first opportunity to prove that our SMARTICLES technology would effectively deliver these types of novel compounds. Although these are not the transformative transactions that we anticipated closing in 2015, these transactions continue to build downstream success-based milestones and royalties for the company." Mr. French continued, "Although we have pursued, and continue to pursue, additional licensing and partnering opportunities, our limited cash runway necessitated the initiation of a formal process to identify potential strategic partners to allow for the continued advancement of our proprietary nucleic acid drug discovery platform and clinical pipeline. The proposed sale of our RNA assets to Microlin Bio, with whom we entered into a term sheet in March 2016, provides such an opportunity. We believe that our proprietary chemistries and delivery technologies are best suited for development of therapeutic compounds that modulate non-coding RNA. Therefore, we feel strongly that these technologies are synergistic and complimentary to Microlin's novel microRNA assets and that Microlin is in a stronger position to advance these assets. As we go through this process with Microlin, we will continue to pursue licensing and partnering opportunities in order to increase value to our shareholders." At Dec. 31, 2015, the Company had cash of $0.7 million compared to $1.8 million at Dec. 31, 2014. A full-text copy of the press release is available for free at: http://is.gd/3jr95N About Marina Biotech Marina Biotech, Inc., headquartered in Bothell, Washington, is a biotechnology company focused on the discovery, development and commercialization of nucleic acid-based therapies utilizing gene silencing approaches such as RNA interference ("RNAi") and blocking messenger RNA ("mRNA") translation. The Company's goal is to improve human health through the development, either through its own efforts or those of its collaboration partners and licensees, of these nucleic acid-based therapeutics as well as the delivery technologies that together provide superior treatment options for patients. The Company has multiple proprietary technologies integrated into a broad nucleic acid-based drug discovery platform, with the capability to deliver novel nucleic acid-based therapeutics via systemic, local and oral administration to target a wide range of human diseases, based on the unique characteristics of the cells and organs involved in each disease. On June 1, 2012, the Company announced that, due to its financial condition, it had implemented a furlough of approximately 90% of its employees and ceased substantially all day-to-day operations. Since that time substantially all of the furloughed employees have been terminated. As of Sept. 30, 2012, the Company had approximately 11 remaining employees, including all of its executive officers, all of whom are either furloughed or working on reduced salary. As a result, since June 1, 2012, its internal research and development efforts have been minimal, pending receipt of adequate funding. Marina Biotech reported a net loss of $6.47 million on $500,000 of license and other revenue for the year ended Dec. 31, 2014, compared to a net loss of $1.57 million on $2.11 million of license and other revenue in 2013. As of Sept. 30, 2015, the Company had $8.12 million in total assets, $8.52 million in total liabilities and a $400,000 total stockholders' deficit. Wolf & Company, P.C., in Boston, Massachusetts, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2014, citing the Company has suffered recurring losses from operations, has a significant accumulated deficit and has been unable to raise sufficient capital to fund its operations through the end of 2015. This raises substantial doubt about the Company's ability to continue as a going concern, the auditors noted. MARINA BIOTECH: Reports $2.64 Million Net Income for 2015 --------------------------------------------------------- Marina Biotech, Inc. filed with the Securities and Exchange Commission its annual report on Form 10-K disclosing net income applicable to common stockholders of $2.64 million on $680,000 of license and other revenue for the year ended Dec. 31, 2015, compared to a net loss applicable to common stockholders of $12.47 million on $500,000 of license and other revenue for the year ended Dec. 31, 2014. As of Dec. 31, 2015, Marina Biotech had $7.59 million in total assets, $7.33 million in total liabilities and $263,000 in total stockholders' equity. Wolf & Company, P.C., in Boston, Massachusetts, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2015, citing that the Company has suffered recurring losses from operations, has a significant accumulated deficit and does not have sufficient capital to fund its operations. This raises substantial doubt about the Company's ability to continue as a going concern. A full-text copy of the Form 10-K is available for free at: http://is.gd/7l72Tg About Marina Biotech Marina Biotech, Inc., headquartered in Bothell, Washington, is a biotechnology company focused on the discovery, development and commercialization of nucleic acid-based therapies utilizing gene silencing approaches such as RNA interference ("RNAi") and blocking messenger RNA ("mRNA") translation. The Company's goal is to improve human health through the development, either through its own efforts or those of its collaboration partners and licensees, of these nucleic acid-based therapeutics as well as the delivery technologies that together provide superior treatment options for patients. The Company has multiple proprietary technologies integrated into a broad nucleic acid-based drug discovery platform, with the capability to deliver novel nucleic acid-based therapeutics via systemic, local and oral administration to target a wide range of human diseases, based on the unique characteristics of the cells and organs involved in each disease. On June 1, 2012, the Company announced that, due to its financial condition, it had implemented a furlough of approximately 90% of its employees and ceased substantially all day-to-day operations. Since that time substantially all of the furloughed employees have been terminated. As of Sept. 30, 2012, the Company had approximately 11 remaining employees, including all of its executive officers, all of whom are either furloughed or working on reduced salary. As a result, since June 1, 2012, its internal research and development efforts have been minimal, pending receipt of adequate funding. MBB MANAGEMENT: Voluntary Chapter 11 Case Summary ------------------------------------------------- Debtor: MBB Management, LLC 10 Medical Parkway, Suite 106 Dallas, TX 75234 Case No.: 16-31345 Chapter 11 Petition Date: April 2, 2016 Court: United States Bankruptcy Court Northern District of Texas (Dallas) Judge: Hon. Stacey G. Jernigan Debtor's Counsel: John P. Lewis, Jr. LAW OFFICE OF JOHN P. LEWIS, JR. 1412 Main St. Ste. 210 Dallas, TX 75202 Tel: (214) 742-5925 Fax: (214) 742-5928 E-mail: jplewisjr@mindspring.com Estimated Assets: $500,000 to $1 million Estimated Liabilities: $1 million to $10 million The petition was signed by Dennis H. Birenbaum, manager. The Debtor did not include a list of its largest unsecured creditors when it filed the petition. MGM GROWTH: Moody's Assigns '(P)B1' CFR, Outlook Stable ------------------------------------------------------- Moody's Investors Service has assigned a (P) B1 corporate rating to MGM Growth Properties LLC the rating outlook is stable. This is the first time Moody's has assigned a rating to the real estate investment trust (REIT). MGM Growth will operate as a standalone public company after its spin-off from MGM Resorts International. The REIT will be comprised of nine casino resort properties and one dining and entertainment complex -- seven located in Las Vegas, two in Mississippi and one in the Detroit metro area - wholly owned by MGM Growth. The transaction is anticipated to close in April 2016. These ratings were assigned with a stable outlook: MGM Growth Properties LLC -- Corporate Family rating at (P)B1 MGM Growth Properties Operating Partnership LP -- Senior Secured Term Loan A rating at (P)B1 -- Senior Secured Term Loan B rating at (P)B1 -- Senior Secured Revolving Credit Facility rating at (P)B1 -- Senior Unsecured Debt rating at (P)B2 RATINGS RATIONALE MGM Growth Properties LLC's (P)B1 corporate family rating primarily reflects MGM Growth's high quality assets, a portfolio tenanted by MGM Resorts - a leading industry operator with a long term track record and its solid leverage and cash flow metrics (on a pro forma basis). Credit challenges include the REIT's high tenant, asset, and geographic concentrations, and MGM Resorts' effective operational control of the REIT. The specialized nature of the REIT's unique gaming assets is also a credit concern. The provisional rating (P) reflects that the existing rating is contingent on the successful execution of the company's capitalization plans which include an initial public offering of equity along with a senior credit facility placement and an unsecured bond offering. The stable rating outlook reflects Moody's expectation that MGM Growth will maintain its proposed capital structure and lease terms. The outlook also anticipates that MGM Resorts will maintain its current ownership interest in MGM REIT. Any material changes to the master lease terms - as they stand - could erode the rating and outlook cushion. MGM Growth's rating could be upgraded if the company were to see an upgrade to MGM Resorts corporate family rating and or revision to the rating outlook by Moody's Investors Service, an increase in portfolio EBITDARM coverage at the operator level to above 2.0x on a consistent basis (while maintaining occupancy in the existing portfolio) and or a decrease in the largest tenant concentration to below 50% of MGM REIT's EBITDA. Increased third party ownership of MGM REIT -- beyond the 50% level -- with commensurate board representation and voting rights is also a potential catalyst to an upgrade. Upon the company's IPO, MGM Resorts is projected to hold approximately 70-75% of MGM Growth's total outstanding shares / OP units. In addition, five of the eight directors on MGM Growth's board will be either employees or existing directors of MGM Resorts. A mitigating factor to MGM Resorts control of the REIT is the establishment of a special approval process for transactions between the two entities in excess of $25 million which present a conflict of interest. The ratings could be downgraded if there is a downgrade to MGM Resorts corporate family rating and/or revision to the rating outlook by Moody's Investor Service, a decline in portfolio EBITDAR operator coverage to 1.5x or below, Net debt to EBITDA increasing to in excess of 6.0x on a consistent basis and or a fixed charge coverage ratio below 2.5x. Additional factors that could result in a downgrade are a restructuring of or material change in the master lease terms, including the triggering of springing lease provisions. The principal methodology used in this rating was Global Rating Methodology for REITs and Other Commercial Property Firms published in July 2010. MIDSTATES PETROLEUM: Reports $1.79 Billion Net Loss for 2015 ------------------------------------------------------------ Midstates Petroleum Company, Inc., filed with the Securities and Exchange Commission its annual report on Form 10-K disclosing a net loss of $1.79 billion on $365 million of total revenues for the year ended Dec. 31, 2015, compared to net income of $117 million on $794 million of total revenues for the year ended Dec. 31, 2014. As of Dec. 31, 2015, Mistates had $679 million in total assets, $2.00 billion in total liabilities and a total stockholders' deficit of $1.32 billion. Deloitte & Touiche LLP, in Houston, Texas, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2015, citing that Midstates' event of default under its Credit Facility, a projected additional debt covenant violation, and resulting lack of liquidity raise substantial doubt about its ability to continue as a going concern. A full-text copy of the Form 10-K is available for free at: http://is.gd/QcJ5Zy About Midstates Petroleum Company Midstates Petroleum Company, Inc. -- http://www.midstatespetroleum.com/-- is an independent exploration and production company focused on the application of modern drilling and completion techniques in oil and liquids-rich basins in the onshore U.S. Midstates' drilling and completion efforts are currently focused in the Mississippian Lime oil play in Oklahoma and Anadarko Basin in Texas and Oklahoma. The Company's operations also include the upper Gulf Coast tertiary trend in central Louisiana. * * * Midstates Petroleum carries a 'B' corporate credit rating from Standard & Poor's Ratings Services. As reported by the TCR on April 8, 2013, Moody's Investors Service affirmed Midstates Petroleum's 'B3' Corporate Family Rating. MILESTONE SCIENTIFIC: Needs More Time to File 2015 Annual Report ---------------------------------------------------------------- Milestone Scientific Inc. filed with the U.S. Securities and Exchange Commission a Notification of Late Filing on Form 12b-25 with respect to its annual report on Form 10-K for the year ended Dec. 31, 2015, stating that: "The registrant experienced delay due to a significant amount of research that was done in order to make sure a complex transaction was accounted for in accordance with GAAP. As a result, the registrant was not able to file the Annual Report on Form 10-K for the year ended December 31, 2015 (the "Annual Report") by the filing deadline on March 30, 2016 without unreasonable effort or expense. The registrant believes that the Annual Report will be filed by April 14, 2016." It is anticipated that the Company will report a net loss of approximately $5.5 million for the fiscal year ended Dec. 31, 2015, compared to a net loss of approximately $1.7 million for the prior fiscal year, an increase of approximately $3.8 million. The primary reason for this increase is due to a $2.0 million increase in selling, general and administrative expenses due to the increase in personnel for the expected growth in our Medical Business Sector and additional consulting and legal expenses incurred in 2015. Additionally, there was an increased loss on earnings from Milestone Medical Inc., $1.1 million and the increased loss on earnings for Milestone China Inc., $348,000 over 2014. About Milestone Scientific Livingston, N.J.-based Milestone Scientific Inc. is engaged in pioneering proprietary, innovative, computer-controlled injection technologies and solutions for the medical and dental markets. The Company reported a net loss attributable to the Company of $1.7 million on $10.33 million of net product sales for the year ended Dec. 31, 2014, compared to net income attributable to the Company of $1.46 million on $10.01 million of net product sales for the year ended Dec. 31, 2013. As of Sept. 30, 2015, the Company had $14.06 million in total assets, $2.13 million in total liabilities, all current and $11.9 million in total equity. MOLYCORP INC: Court Confirms 4th Joint Amended Reorganization Plan ------------------------------------------------------------------ Molycorp, Inc., a global producer of advanced rare earth and rare metal based engineered materials used in many electronic, transportation, industrial and clean energy applications, disclosed that its Fourth Joint Amended Plan of Reorganization ("the Plan") was confirmed on March 30 by the U.S. Bankruptcy Court for the District of Delaware. The confirmation is one of the final steps before Molycorp will be able to emerge from Chapter 11 protection as a newly reorganized company. The confirmed Plan allows Molycorp's downstream business units, Chemicals & Oxides, Magnequench, and Rare Metals to reorganize under new ownership with a significantly stronger balance sheet. The Plan features a settlement agreement between an affiliate of funds managed by Oaktree Capital Management L.P. ("Oaktree"), a secured creditor, and unsecured creditors, pursuant to which Oaktree will receive 92.5% of the equity and the unsecured creditors will receive 7.5% of the equity in the reorganized company. A settlement also was reached on the purchase through a credit bid by the ad hoc group of the Company's 10% secured noteholders of the mineral rights and certain intellectual property of Molycorp Minerals (the "Sale"). The ad hoc group of 10% secured noteholders was the last major secured creditor group with which the Company had not reached a settlement in a mediation process that spanned several months. Molycorp's Mountain Pass mine was excluded from the Plan, and the equipment and surface property rights at the mine were excluded from the Sale. "The Plan confirmation is a major step forward for the Company," stated Geoff Bedford, Molycorp President and Chief Executive Officer. "Throughout this nine month process, we have made every effort to continue to run our business and service our customers and we thank them for our support and patience. I also want to acknowledge all of our advisors and employees who have worked tirelessly during this time and helped us to reach this day." When the Plan becomes effective, Molycorp will emerge as a privately held company with a sustainable balance sheet and strong financial partners. Molycorp has been advised by the investment banking firm of Miller Buckfire & Co. and received financial advice from AlixPartners, LLP. Jones Day and Young, Conaway, Stargatt & Taylor LLP served as legal counsel to the Company in this process. About Molycorp, Inc. Molycorp has corporate offices in the United States, Canada and China. CEO Geoffrey R. Bedford, and other senior management members are located in Molycorp's corporate offices in Toronto, Canada. Other senior management members are located at its U.S. corporate headquarters in Greenwood Village, Colorado. Molycorp reported a net loss of $623 million in 2014, a net loss of $377 million in 2013 and a net loss of $475 million in 2012. As of March 31, 2015, the Company had $2.49 billion in total assets, $1.78 billion in total liabilities and $709 million in total stockholders' equity. Molycorp and its North American subsidiaries, together with certain of its non-operating subsidiaries outside of North America, filed Chapter 11 voluntary petitions in Delaware (Bankr. D. Del. Lead Case No. 15-11357) on June 25, 2015, after reaching agreement with a group of lenders on a financial restructuring. The Chapter 11 cases of Molycorp and 20 affiliated debts are pending before Judge Christopher S. Sontchi. The agreement provides for a financial restructuring of the Company's $1.7 billion in debt and provides up to $225 million in gross proceeds in new financing to support operations while the Company completes negotiations with creditors. The Company's operations outside of North America, with the exception of non-operating companies in Luxembourg and Barbados, are excluded from the filings. Molycorp Rare Metals (Oklahoma), LLC, with operations in Quapaw, Oklahoma, also is excluded from the filings as it is not 100% owned by the Company. Molycorp is being advised by the investment banking firm of Miller Buckfire & Co. and is receiving financial advice from AlixPartners, LLP. Jones Day and Young, Conaway, Stargatt & Taylor LLP act as legal counsel to the Company in this process. Prime Clerk serves as claims and noticing agent. Secured creditor Oaktree Capital Management L.P., consented to the use of cash collateral and to extend postpetition financing. On July 8, 2015, the U.S. trustee overseeing the Chapter 11 case of Molycorp Inc. appointed eight creditors of the company to serve on the official committee of unsecured creditors. The Creditors Committee tapped Ashby & Geddes, P.A. and Paul Hastings LLP as attorneys. Wells Fargo Bank, the cash collateral lender, is represented in the case by J. Cory Falgowski, Esq., Eric A. Schaffer, Esq., Roy W. Arnold, Esq., and Luke A. Sizemore, Esq., at Reed Smith LLP. * * * Judge Christopher Sontchi in Delaware approved the disclosure statement explaining the Debtors' Plan on Jan. 20, 2016, after the Debtors revised the Disclosure Statement to incorporate certain modifications directed by the Court during the Jan. 14 hearing. The Plan contemplates two possible outcomes: (1) the sale of substantially all of the Debtors' assets if certain conditions set forth in the Plan are satisfied and (2) (a) the sale of the assets associated with the Debtors' Mountain Pass mining facility in San Bernardino County, California; and (b) the stand-alone reorganization around the Debtors' other three business units. MOLYCORP INC: Milbank Advised Oakley in Ch. 11 Case --------------------------------------------------- Capping its latest major bankruptcy assignment, Milbank, Tweed, Hadley & McCloyLLP has represented private equity investor Oaktree Capital Management LP in the successful chapter 11 reorganization of global metals and mining company Molycorp, Inc. Molycorp's plan of reorganization was confirmed on March 30, following a two-day hearing in U.S. Bankruptcy Court for the District of Delaware. Under terms of the plan, secured lender Oaktree, which previously provided debtor-in-possession financing to Molycorp, was granted a 92.5% equity stake in the reorganized company, comprised of surviving "neo" rare earth processing entities and related businesses. The remaining 7.5% equity was given to unsecured creditors, including 10% deficiency claim holders. The unsecured group will also receive $2 million in cash. Specializing in the production of customized, rare earth and rare metal products used for the manufacturing of mobile devices, hybrid vehicles, GPS systems and other goods, Molycorp and several affiliates filed a voluntary chapter 11 proceeding in 2015. At the time of its petition, the U.S.-Canadian company had approximately $2.5 billion in assets and $1.8 billion in liabilities. The approval of the reorganization plan by U.S. Bankruptcy Judge Christopher S. Sontchi concluded a case that took the nation's only rare earth mining company into federal court last June. The confirmed plan settles all claims against Molycorp by Oaktree as well as groups representing the company's high-interest noteholders and unsecured creditors. Milbank's team on behalf of Oaktree was led by Dennis Dunne, who heads the firm's Financial Restructuring Group, along with partners Samuel Khalil (Restructuring), Andrew Leblanc (Litigation), Eric Reimer (Finance) and Aaron Renenger (Litigation), along with special counsel Brian Kinney and associate Lauren Doyle. About Milbank Milbank, Tweed, Hadley & McCloy LLP is an international law firm that provides innovative legal services to clients around the world. Founded in New York 150 years ago, Milbank has offices in Beijing, Frankfurt, Hong Kong, London, Los Angeles, Munich, Sao Paulo, Seoul, Singapore, Tokyo and Washington, DC. Milbank's lawyers collaborate across practices and offices to help the world's leading commercial, financial and industrial enterprises, as well as institutions, individuals and governments, achieve their strategic objectives. About Molycorp, Inc. Molycorp has corporate offices in the United States, Canada and China. CEO Geoffrey R. Bedford, and other senior management members are located in Molycorp's corporate offices in Toronto, Canada. Other senior management members are located at its U.S. corporate headquarters in Greenwood Village, Colorado. Molycorp reported a net loss of $623 million in 2014, a net loss of $377 million in 2013 and a net loss of $475 million in 2012. As of March 31, 2015, the Company had $2.49 billion in total assets, $1.78 billion in total liabilities and $709 million in total stockholders' equity. Molycorp and its North American subsidiaries, together with certain of its non-operating subsidiaries outside of North America, filed Chapter 11 voluntary petitions in Delaware (Bankr. D. Del. Lead Case No. 15-11357) on June 25, 2015, after reaching agreement with a group of lenders on a financial restructuring. The Chapter 11 cases of Molycorp and 20 affiliated debts are pending before Judge Christopher S. Sontchi. The agreement provides for a financial restructuring of the Company's $1.7 billion in debt and provides up to $225 million in gross proceeds in new financing to support operations while the Company completes negotiations with creditors. The Company's operations outside of North America, with the exception of non-operating companies in Luxembourg and Barbados, are excluded from the filings. Molycorp Rare Metals (Oklahoma), LLC, with operations in Quapaw, Oklahoma, also is excluded from the filings as it is not 100% owned by the Company. Molycorp is being advised by the investment banking firm of Miller Buckfire & Co. and is receiving financial advice from AlixPartners, LLP. Jones Day and Young, Conaway, Stargatt & Taylor LLP act as legal counsel to the Company in this process. Prime Clerk serves as claims and noticing agent. Secured creditor Oaktree Capital Management L.P., consented to the use of cash collateral and to extend postpetition financing. On July 8, 2015, the U.S. trustee overseeing the Chapter 11 case of Molycorp Inc. appointed eight creditors of the company to serve on the official committee of unsecured creditors. The Creditors Committee tapped Ashby & Geddes, P.A. and Paul Hastings LLP as attorneys. Wells Fargo Bank, the cash collateral lender, is represented in the case by J. Cory Falgowski, Esq., Eric A. Schaffer, Esq., Roy W. Arnold, Esq., and Luke A. Sizemore, Esq., at Reed Smith LLP. * * * Judge Christopher Sontchi in Delaware approved the disclosure statement explaining the Debtors' Plan on Jan. 20, 2016, after the Debtors revised the Disclosure Statement to incorporate certain modifications directed by the Court during the Jan. 14 hearing. The Plan contemplates two possible outcomes: (1) the sale of substantially all of the Debtors' assets if certain conditions set forth in the Plan are satisfied and (2) (a) the sale of the assets associated with the Debtors' Mountain Pass mining facility in San Bernardino County, California; and (b) the stand-alone reorganization around the Debtors' other three business units. MOLYCORP INC: Wells Fargo, Noteholders vs. Collateral Surcharge --------------------------------------------------------------- Wells Fargo Bank, National Association and the ad hoc group of holders of the 10% senior secured notes submitted to the U.S. Bankruptcy Court for the District of Delaware, their respective objections to Debtors Molycorp, Inc., et. al.'s Motion seeking authorization to surcharge certain collateral. Wells Fargo Bank, National Association, avers that the Debtors should not be permitted to surcharge the "10% Notes Collateral" for these reasons: (1) The Debtors previously waived their right to surcharge any prepetition collateral, including the pari passu collateral, unless the applicable secured party consents to such surcharge, and (2) The Collateral Agent, which holds legal title to the liens and security interests in the pari passu collateral in trust for the equal and ratable benefit of the 10% Noteholders and Oaktree, has not consented, and will not consent, to a surcharge. Wells Fargo contends that the Debtors' Motion should be denied because the Debtors are barred from surcharging the pari passu collateral by their prior waiver. The Ad Hoc 10% Noteholders also argues that the Debtors' Motion should be denied: (1) The Final DIP Order waives surcharge with respect ot the "Prepetition Collateral," which includes the collateral that is secured by a single lien for the benefit of Oaktree and the 10% Notes. The waiver does not identify Oaktree by name, or otherwise suggest that surcharge against the shared collateral was only waived for Oaktree. (2) Even if the Debtors, Oaktree, and the Official Committee of Unsecured Creditors had intended to exclude the 10% Notes from the waiver in the Final DIP Order, they could not have achieved their intended result. As a matter of law, there is only one "secured claim" against the shared collateral, and that secured claim cannot be split so that the waiver applied to some creditors but not others. (3) The Surcharge Motion exclusively identifies costs incurred by Molycorp Minerals, LLC, with respect to Mountain Pass, yet seeks to surcharge collateral that is unrelated to Mountain Pass held by Molycorp, Inc. Such cross-debtor surcharge would defy the text and purpose of Section 506(c) of the Bankruptcy Code, which the Supreme Court has strictly construed. (4) The Surcharge Motion demands for the first time – months after bidding procedures were agreed, and a week after no cash bids were received for the Molycorp Minerals Assets – that the Ad Hoc 10% Noteholders pay at least $30 million in cash as condition to credit bidding for the assets that are the basis for the motion. The Ad Hoc 10% Noteholders credit bid only $1 million for those assets. This demand is therefore illogical, unprecedented, and abusive. (5) The Surcharge Motion is moot. The 10% Noteholders no longer seek ownership of the real estate and mining facility at Mountain Pass. Accordingly, the 10% Notes will not receive any of the "benefits" alleged in the Surcharge Motion. Wells Fargo Bank, National Association, is represented by: J. Cory Falgowski, Esq. REED SMITH LLP 1201 Market Street, Suite 1500 Wilmington, DE 19801 Telephone: (302)778-7500 Facsimile: (302)778-7575 E-mail: jfalgowski@reedsmith.com - and - Eric A. Schaffer, Esq. Luke A. Sizemore, Esq. REED SMITH LLP 225 Fifth Avenue, Suite 1200 Pittsburgh, PA 15222 Telephone: (412)288-3131 Facsimile: (412)288-3063 E-mail: eschaffer@reedsmith.com lsizemore@reedsmith.com The Ad Hoc Group of Holders of the 10% Senior Secured Notes issued by Molycorp, Inc., is represented by: Laura Davis Jones, Esq. James E. O'Neill, Esq. Colin R. Robinson, Esq. PACHULSKI STANG ZIEHL & JONES LLP 919 N. Market Street, 17th Floor P.O. Box 8705 Wilmington, DE 19899-8705 (Courier 19801) Telephone: (302)652-4100 Facsimile: (302)652-4400 E-mail: ljones@pszjlaw.com jo'neill@pszjlaw.com crobinson@pszjlaw.com - and - Thomas Moers Mayer, Esq. Gregory Horowitz, Esq. Joshua K. Brody, Esq. Andrew M. Dove, Esq. KRAMER LEVIN NAFTALIS & FRANKEL LLP 1177 Avenue of the Americas New York, NY 10036 Telephone: (212)715-9100 Facsimile: (212)715-8000 E-mail: tmayer@kramerlevin.com ghorowitz@kramerlevin.com jbrody@kramerlevin.com adove@kramerlevin.com About Molycorp, Inc. Molycorp Inc. -- http://www.molycorp.com/-- is a global rare earths and rare metals producer. Molycorp owns several prominent are earth processing facilities around the world. It has a workforce of 2,530 employees at locations on three continents. Molycorp's Mountain Pass Rare Earth Facility in San Bernadino County, California, is home to one of the world's largest and richest deposits of rare earths. Molycorp has corporate offices in the United States, Canada and China. CEO Geoffrey R. Bedford, and other senior management members are located in Molycorp's corporate offices in Toronto, Canada. Other senior management members are located at its U.S. corporate headquarters in Greenwood Village, Colorado. Molycorp reported a net loss of $623 million in 2014, a net loss of $377 million in 2013 and a net loss of $475 million in 2012. As of March 31, 2015, the Company had $2.49 billion in total assets, $1.78 billion in total liabilities and $709 million in total stockholders' equity. Molycorp and its North American subsidiaries, together with certain of its non-operating subsidiaries outside of North America, filed Chapter 11 voluntary petitions in Delaware (Bankr. D. Del. Lead Case No. 15-11357) on June 25, 2015, after reaching agreement with a group of lenders on a financial restructuring. The Chapter 11 cases of Molycorp and 20 affiliated debts are pending before Judge Christopher S. Sontchi. The agreement provides for a financial restructuring of the Company's $1.7 billion in debt and provides up to $225 million in gross proceeds in new financing to support operations while the Company completes negotiations with creditors. The Company's operations outside of North America, with the exception of non-operating companies in Luxembourg and Barbados, are excluded from the filings. Molycorp Rare Metals (Oklahoma), LLC, with operations in Quapaw, Oklahoma, also is excluded from the filings as it is not 100% owned by the Company. Molycorp is being advised by the investment banking firm of Miller Buckfire & Co. and is receiving financial advice from AlixPartners, LLP. Jones Day and Young, Conaway, Stargatt & Taylor LLP act as legal counsel to the Company in this process. Prime Clerk serves as claims and noticing agent. Secured creditor Oaktree Capital Management L.P., consented to the use of cash collateral and to extend postpetition financing. On July 8, 2015, the U.S. trustee overseeing the Chapter 11 case of Molycorp Inc. appointed eight creditors of the company to serve on the official committee of unsecured creditors. * * * Sureties Ironshore Indemnity, Inc., et al., on March 21, 2016, filed a motion asking the U.S. Bankruptcy Court for the District of Delaware to direct the appointment of an examiner in Molycorp Minerals, LLC, as well as extend the objection deadlines and adjourn the hearing dates for plan confirmation. The Sureties contend that in order for the plan confirmation process to proceed expeditiously with the transparency that is required under the Bankruptcy Code, the request that the Court direct the appointment of an examiner under 11 U.S.C. Section 1104(c) for the limited scope of examining and reporting on the value of the Molycorp Minerals, LLC ("Molycorp Minerals") Intellectual Property ("IP"), IP Issues, and proposed Molycorp Silmet AS transaction. Bankruptcy Judge Christopher Sontchi approved Molycorp's plan to exit Chapter 11 bankruptcy following a two-day trial that began March 29, 2016. Under the Plan, unsecured creditors (including deficiency claims arising from the 10% senior secured notes) would receive 7.5% of the reorganized company's equity in the event of a standalone reorganization plan, with lender Oaktree Capital Management receiving 92.5% of the reorganized equity. If there is a sale of the entire company under the plan, unsecured creditors (again, including deficiency claims) would receive 7.5% of the proceeds of the sale, with Oaktree receiving 92.5%. MOLYCORP: Wants Tolleson Assets Sold to Eutectix for $2.5M ---------------------------------------------------------- Molycorp, Inc. and its affiliated debtors ask the U.S. Bankruptcy Court to authorize the sale of the assets of debtor Molycorp Metals & Alloys, Inc. located in Tolleson, Arizona ("Tolleson Assets") to Eutectix, LLC, free and clear of liens, claims, interests and encumbrances. The Tolleson Assets generally are comprised of (a) seven acres of real property, (b) various manufacturing, research and administrative buildings on the real property and (c) the equipment and inventory necessary to the operation of the Tolleson Business. The Tolleson Business uses vacuum induction melting furnaces to produce a wide variety of rare earth alloys, complex custom-made alloys, non-rare earth products containing exotic alloys such as Ni-based and Co-based super-alloys and experimental binary and ternary alloys for universities and governmental agencies. The Asset Purchase Agreement contains, among others, these material terms: (a) Purchase Price: $2,500,000 and the assumption of certain liabilities. (b) Deposit: $250,000 (c) Assumed Liabilities: All Liabilities, other than Excluded Liabilities, arising from the ownership or operation of the Tolleson Assets or the Tolleson Business on or after the Closing and any Transfer Taxes. (d) Excluded Liabilities: Any and all Liabilities of Molycorp Metals & Alloys arising out of, relating to or otherwise in respect of the Tolleson Assets arising prior to the Closing, and all other Liabilities of Molycorp Metals & Alloys, other than the Assumed Liabilities. The Debtors explain that the Tolleson Business has been losing money for the Debtors for the last two years and has seen its sales diminish significantly. The Debtors note that while the Tolleson Business has been able to finance itself for the last several months by taking drastic cost cutting measures, terminating employees and selling existing inventory, the Tolleson Business will require additional financing when that inventory is exhausted and its cash is depleted -- additional financing the Debtors are unable to provide at this time. The Debtors tell the Court that the purchase price under the Purchase Agreement is the highest and best received after months of marketing, both by the Debtors and their investment banker. After analyzing all potential options, the Debtors have determined, in their reasonable business judgment and after consultation with their professional advisors, that the sale of the Tolleson Assets pursuant to the Purchase Agreement is the best path forward to maximize creditor recoveries and is the highest and best value that can be realized. The Debtors' Motion is scheduled for hearing on April 8, 2016, at 1:00 p.m. The deadline for the submission of objections to the Motion is set on April 1, 2016. Molycorp, Inc., and its affiliated debtors are represented by: M. Blake Cleary, Esq. Edmon L. Morton, Esq. Justin H. Rucki, Esq. Ashley E. Jacobs, Esq. YOUNG CONAWAY STARGATT & TAYLOR, LLP Rodney Square 1000 North King Street Wilmington, DE 19801 Telephone: (302)571-6600 Facsimile: (302)571-1253 E-mail: mbcleary@ycst.com emorton@ycst.com jrucki@ycst.com ajacobs@ycst.com - and - Brad B. Erens, Esq. Joseph M. Miller, Esq. JONES DAY 77 West Wacker Chicago, IL 60601 Telephone: (312)782-3939 Facsimile: (312)782-8585 E-mail: bberens@jonesday.com - and - Paul D. Leake, Esq. Lisa Laukitis, Esq. George R. Howard, Esq. JONES DAY 222 East 41st Street New York, NY 10017 Telephone: (212)326-3939 Facsimile: (212)755-7306 E-mail: pdleake@jonesday.com llaukitis@jonesday.com grhoward@jonesday.com N-VIRO INTERNATIONAL: Delays Filing of 2015 Annual Report --------------------------------------------------------- N-Viro International Corporation filed with the U.S. Securities and Exchange Commission a Notification of Late Filing on Form 12b-25 with respect to its annual report on Form 10-K for the year ended Dec. 31, 2015. The Company said it was unable to complete the preparation of the financial statement within the required time period without unreasonable effort or expense, due to delays in gathering and the audit of financial information needed to complete the preparation and inclusion of the required financial statement. About N-Viro International Toledo, Ohio-based N-Viro International Corporation owns and sometimes licenses various N-Viro processes and patented technologies to treat and recycle wastewater and other bio-organic wastes, utilizing certain alkaline and mineral by-products produced by the cement, lime, electrical generation and other industries. N-Viro International reported a net loss of $1.76 million on $1.33 million of revenues for the year ended Dec. 31, 2014, compared to a net loss of $1.64 million on $3.37 million of revenues for the year ended Dec. 31, 2013. UHY LLP, in Farmington Hills, Michigan, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2014, citing that the Company's recurring losses, negative cash flow from operations and net working capital deficiency raise substantial doubt about its ability to continue as a going concern. NAS HOLDINGS: Case Summary & 9 Unsecured Creditors -------------------------------------------------- Debtor: NAS Holdings, Inc. 3629 Forsythia Trail Clemmons, NC 27012 Case No.: 16-50346 Chapter 11 Petition Date: April 1, 2016 Court: United States Bankruptcy Court Middle District of North Carolina (Winston-Salem) Judge: Hon. Catharine R. Aron Debtor's Counsel: Kenneth Love, Esq. LOVE AND DILLENBECK LAW, PLLC P.O. Box 779 Rural Hall, NC 27045 Tel: 336-210-1853 Fax: 336-464-2172 E-mail: consumerattorneylove@gmail.com Estimated Assets: $500,000 to $1 million Estimated Liabilities: $1 million to $10 million The petition was signed by Neeket Vadgama, vice president. A list of the Debtor's nine largest unsecured creditors is available for free at http://bankrupt.com/misc/ncmb16-50346.pdf NATURAL MOLECULAR: Redmond Seeks to Foreclose on Wash. Property --------------------------------------------------------------- Redmond Funding Group, LLC, asks the U.S. Bankruptcy Court to lift the automatic stay imposed in the Chapter 11 cases of Natural Molecular Testing Corp., to permit it to exercise its foreclosure rights as a secured creditor and as the beneficiary of two deeds of trust encumbering certain real property located in Douglas County, Washington. Redmond Funding tells the Court that the Debtor as a junior lienholder does not have equity in its subordinate lien encumbering the Property as it holds a materially defaulted subordinate deeds of trust of two priority liens held by Redmond Funding. Moreover, Redmond Funding asserts that the Debtor's debt to Redmond Funding is increasing at a rate of approximately $15,608 per month and the Debtor cannot produce any evidence or demonstrate that it has adequate funds or resources to protect its junior deed of trust lien as it has taken no action to foreclose or protect its lien by making adequate protection payments to Redmond Funding. According to Redmond Funding, the economic value of the Debtor's deed of trust lien is tied to its ability to pay the full balance due to Redmond Funding, however, the Debtor has no present ability to foreclose the Debtor's Deed of Trust because the obligations secured by such deed of trust are contingent upon first obtaining a judgment in the applicable adversary proceeding, hence the need to immediately commence a foreclosure and enforcement proceedings. Redmond Funding stresses that if it is prohibited from foreclosing the Redmond Funding Deeds of Trust it will continue to harm Redmond Funding materially considering that the debt secured by its Deeds of Trust presently exceeds the fair market value of the Property and no equity remains in the Property to be secured by the Debtor's Deed of Trust. Redmond Funding Group, LLC is represented by: Mark J. Rosenblum EISENHOWER CARLSON PLLC 1200 Wells Fargo Plaza 1201 Pacific Avenue Tacoma, WA 98402 Telephone: 253-572-4500 Facsimile: 253-272-5732 Email: mrosenblum@eisenhowerlaw.com About Natural Molecular Natural Molecular Testing Corp., which provides molecular diagnostic-testing services, including testing for sexually transmitted diseases and screening and counseling about cystic fibrosis, filed a petition for Chapter 11 protection (Bankr. W.D. Wash. Case No. 13-19298) on Oct. 21, 2013, in Seattle. Hacker & Willig, Inc., P.S., serves as its bankruptcy counsel. The closely held company said assets are worth more than $100 million while debt is less than $50 million. Gail Brehm Geiger, Acting U.S. Trustee for Region 18, appointed a five-member Committee of Unsecured Creditors. Foster Pepper's Jane Pearson, Esq.; Christopher M. Alston, Esq., and Terrance Keenan, Esq., serve as the Committee's attorneys. NEPHROS INC: Reports $3.08 Million Net Loss for 2015 ---------------------------------------------------- Nephros, Inc., filed with the Securities and Exchange Commission its annual report on Form 10-K disclosing a net loss of $3.08 million on $1.94 million of total net revenues for the year ended Dec. 31, 2015, compared to a net loss of $7.37 million on $1.74 million of total net revenues for the year ended Dec. 31, 2014. As of Dec. 31, 2015, the Company had $3.97 million in total assets, $1.30 million in total liabilities and $2.66 million in total stockholders' equity. Withum Smith+Brown, PC, in Morristown, New Jersey, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2015, citing that the Company has incurred negative cash flow from operations and recurring net losses since inception. These conditions, among others, raise substantial doubt about its ability to continue as a going concern. A full-text copy of the Form 10-K is available for free at: http://is.gd/CXBI8R About Nephros River Edge, N.J.-based Nephros, Inc., is a commercial stage medical device company that develops and sells high performance liquid purification filters. Its filters, which it calls ultrafilters, are primarily used in dialysis centers and healthcare facilities for the production of ultrapure water and bicarbonate. NET DATA: Exclusivity Plan Proposal Period Extended to June 1 ------------------------------------------------------------- Judge Sheri Bluebond of the U.S. Bankruptcy Court for the Central District of California, approved a stipulation submitted by Net Data Centers, Inc., the Official Committee of Creditors Holding Unsecured Claims, and DuPont Fabros Technology, L.P. and its affiliates, in relation to the extensions of the Debtor's Plan and Disclosure Statement filing deadlines and the extension of exclusivity. The Stipulation also provided for the continuances pending the conclusion of the mediation between the parties, which the Debtor, the Committee and DFT have rescheduled for May 4 and 5, 2016. Judge Bluebond ordered the extension of the Debtor's plan filing and plan acceptance exclusivity periods to June 1, 2016, and Aug. 1, 2016, respectively. Judge Bluebond further ordered that the Chapter 11 case status hearing and disclosure statement approval hearing set for April 13, 2016 at 2:00 p.m., will be continued to July 6, 2016 at 2:00 p.m. She directed the Debtor to file an updated status report with the Court by June 22, 2016, to report on the results of the May 2016 mediation and other pertinent matters. The Parties entered into the Stipulation after learning that their approved mediator, former U.S. Bankruptcy Judge John E. Ryan, had suddenly taken ill and had gone to the hospital for treatment. Net Data Centers, Inc., is represented by: Paul A. Beck, Esq. Lewis R. Landau, Esq. LAW OFFICES OF PAUL A. BECK, APC 13701 Riverside Drive, Suite 701 Sherman Oaks, CA 91423 Telephone: (818) 501-1141 Facsimile: (818) 501-1241 E-mail: pab@pablaw.org lew@landaunet.com About Net Data Centers Net Data Centers, Inc. filed a Chapter 11 bankruptcy petition (Bankr. C.D. Cal. Case No. 15-12690) on Feb. 23, 2015. Pervez P. Delawalla, the president & CEO, signed the petition. The Hon. Sheri Bluebond is assigned to the case. William F Govier, Esq., at Lesnick Prince & Pappas LLP, serves as counsel to the Debtor. The Debtor disclosed, in its amended schedules, $9,566,908 in assets and $13,352,373 in liabilities. In its original schedules, the Debtor disclosed $9,110,070 in assets and $5,236,687 in liabilities. The U.S. trustee appointed three creditors to serve on the Official Committee of Unsecured Creditors. The Committee is represented by Buchalter Nemer, APC. NET ELEMENT: Reports $13.3 Million Net Loss for 2015 ---------------------------------------------------- Net Element, Inc., filed with the Securities and Exchange Commission its annual report on Form 10-K disclosing a net loss of $13.3 million on $40.2 million of total revenues for the year ended Dec. 31, 2015, compared to a net loss of $10.21 million on $21.4 million of total revenues for the year ended Dec. 31, 2014. As of Dec. 31, 2015, the Company had $22.9 million in total assets, $13.9 million in total liabilities and $9.04 million in total stockholders' equity. Daszkal Bolton LLP, in Fort Lauderdale, Florida, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2015, citing that the Company has sustained recurring losses from operations and has working capital and accumulated deficits that raise substantial doubt about its ability to continue as a going concern. A full-text copy of the Form 10-K is available for free at: http://is.gd/zqhtuE About Net Element Miami, Fla.-based Net Element International, Inc., formerly Net Element, Inc., currently operates several online media Web sites in the film, auto racing and emerging music talent markets. NEW GULF RESOURCES: Defends Baker Botts Fee Premium --------------------------------------------------- New Gulf Resources, LLC, et al., said in a court filing that the employment of Baker Botts is warranted and consideration of the fee premium prior to the final fee hearing would be premature. On Dec. 19, 2015, the Debtors filed an application to employ Baker Botts L.L.P. as counsel. The Office of the United States Trustee subsequently filed an objection with respect to the Fee Premium component of Baker Botts' compensation. The Court ultimately entered an order approving the terms of the Application except for the Fee Premium, reserving consideration, authorization, and approval of the Fee Premium for a later date after notice and hearing. On Feb. 1, 2016, the Court docketed a letter indicating that it agreed with the recent holding in Boomerang Tube, Inc., Case No. 15-11247 (MFW) finding that "retention provisions that provide for payment for fee defense litigation run afoul of the binding ruling in ASARCO and are not otherwise permitted under Sec. 328 and 330." On Feb. 8, 2016, the Court held a telephonic conference and discussed the Court's Feb. 1 letter with Baker Botts and the U.S. Trustee. The Court invited Baker Botts to file a responsive brief, with reply to follow from the U.S. Trustee if and when so directed by the Court. Baker Botts states that the Fee Premium is not compensation for fee defense costs, and as such, neither the Supreme Court's decision in ASARCO nor the recent Delaware bankruptcy court decision in Boomerang has any bearing on the consideration of this issue. Rather, the question before the Court is whether, pursuant to Sections 327 and 330, professional fees can include a market-driven premium that increases the hourly rates by ten percent. Resolution of that question turns on only one issue: is the total compensation "reasonable compensation" pursuant to section 330(a)(1)(A). According to Baker Botts, the Fee Premium is reasonable compensation when taking into account that: (i) other professionals in complex cases charge comparable or even higher rates; (ii) Baker Botts charges a comparable rate to other clients; and (iii) the current oil and gas crisis has increased the overall demand for Baker Botts' restructuring professionals. "Notwithstanding these factors, a final determination of reasonableness under Section 330 is not ripe until the conclusion of the bankruptcy case; any decision regarding the Fee Premium prior to that time is premature. Indeed, the potential waiver of the Fee Premium reinforces Baker Botts' position that the determination of reasonableness at this time is not ripe. It is difficult to imagine that any party would contend that ASARCO or Boomerang would have any bearing on this dispute had Baker Botts merely increased its rates by 10 percent and not also agreed to a waiver of the premium under specified circumstances. It would be a perverse outcome if a professional's compensation structure was denied solely because it had agreed to reduce its fees under certain circumstances; such a ruling would only encourage professionals to drop the waiver in the future and seek approval of the Fee Premium in all circumstances. Such an outcome would be a disservice to clients and is not compelled by the rationale of either ASARCO or Boomerang. Rather, the Court should award, or deny, Baker Botts' compensation by applying the reasonableness standard under Section 330 at the conclusion of the case," the firm tells the Court. About New Gulf Resources Founded in 2011 and headquartered in Tulsa, Oklahoma, New Gulf Resources is an independent oil and natural gas company engaged in the acquisition, development, exploration and production of oil and natural gas properties, focused primarily in the East Texas Basin. New Gulf Resources, LLC, NGR Holding Company LLC, NGR Texas, LLC, and NGR Finance Corp. filed Chapter 11 bankruptcy petitions (Bankr. D. Del. Lead Case No. 15-12566) on Dec. 17, 2015. The petitions was signed by Danni Morris as chief financial officer. The Debtors have engaged Baker Botts L.L.P., as bankruptcy counsel, Young, Conaway, Stargatt & Taylor, LLP as co-counsel, Barclays Capital Inc., as investment banker, Zolfo Cooper, LLC as financial advisor, and Prime Clerk LLC as claims and notice agent. Judge Brendan Linehan Shannon has been assigned the case. * * * The Debtors negotiated a Chapter plan of reorganization that contemplates the raising of new capital through a rights offering and the conversion of necessary debtor-in-possession financing into flexible exit financing. The Debtors won approval assume a backstop note purchase agreement with entities that have agreed to support the $50 million rights offering. The Debtors on March 4, 2016 announced an extension of the rights offering maturity date to March 24. NEW GULF RESOURCES: Grant Thornton Okayed as Independent Auditor ---------------------------------------------------------------- New Gulf Resources, LLC and its debtor affiliates received approval to employ Grant Thornton LLP as independent auditor. The Debtors have employed Grant Thornton since Dec. 6, 2011 to provide audit services. They now need to the firm to complete an audit of their consolidated balance sheet as of December 31, 2015, and consolidated statements of operations, members' equity and cash flows for the year then ended. Grant Thornton estimates that the total cost of its 2015 audit services will be $180,000, based on its standard hourly rates for this type of work, ranging from $120 to $180 per hour. New Gulf will pay Grant Thornton a $45,000 retainer before the commencement of work. John H. Meinders -- john.meinders@us.gt.com -- a partner at the firm, says Grant Thornton Grant Thornton (a) does not hold or represent any interest adverse to the Debtors' estates and (b) is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code, as modified by Section 1107(b). About New Gulf Resources Founded in 2011 and headquartered in Tulsa, Oklahoma, New Gulf Resources is an independent oil and natural gas company engaged in the acquisition, development, exploration and production of oil and natural gas properties, focused primarily in the East Texas Basin. New Gulf Resources, LLC, NGR Holding Company LLC, NGR Texas, LLC, and NGR Finance Corp. filed Chapter 11 bankruptcy petitions (Bankr. D. Del. Lead Case No. 15-12566) on Dec. 17, 2015. The petitions was signed by Danni Morris as chief financial officer. The Debtors have engaged Baker Botts L.L.P., as bankruptcy counsel, Young, Conaway, Stargatt & Taylor, LLP as co-counsel, Barclays Capital Inc., as investment banker, Zolfo Cooper, LLC as financial advisor, and Prime Clerk LLC as claims and notice agent. Judge Brendan Linehan Shannon has been assigned the case. * * * The Debtors negotiated a Chapter plan of reorganization that contemplates the raising of new capital through a rights offering and the conversion of necessary debtor-in-possession financing into flexible exit financing. The Debtors won approval assume a backstop note purchase agreement with entities that have agreed to support the $50 million rights offering. The Debtors on March 4, 2016 announced an extension of the rights offering maturity date to March 24. NEWZOOM INC: Court Approves FTI Consulting Employment ----------------------------------------------------- The Hon. Hannah L. Blumenstiel of the U.S. Bankruptcy Court for the Northern District of California approved Newzoom, Inc.'s engagement contract with FTI Consulting Inc. The engagement contract requires FTI to provide Andrew Hinkelman as chief restructuring officer to the Debtor and additional personnel to assist the CRO. Andrew Hinkelman, a senior managing director of FTI, tells the Court that prior to and after the Petition Date, FTI provided and continues to provide restructuring management services, crisis management services, and CRO services including, but not limited to these: * Liquidity Forecasting -- Evaluate and manage cash flow. -- Approve, manage, and control cash disbursements. -- Evaluate and control cash conservation measures and assist with implementation of cash forecasting and reporting tools as requested. -- Preparation and negotiation of financing budgets and related documents. * Restructuring / Other Services -- Assess potential EBITDA based on revenue and product line strategy and other restructuring initiatives. -- Development of go forward business and restructuring plans, including without limitation the development of a written assessment of the future prospects of the business, the related working capital needs and a recommendation of how the Company can best be restructured to realize value. -- Analyze long term capital needs to effectuate a capital raise, sale transaction, or restructuring. -- Develop working capital management tools. -- Participate in development of strategy to negotiate with key stakeholders in order to effectuate a capital raise, sale transaction, or restructuring. -- Evaluate and manage the inflows and outflows of cash. Chapter 11 Execution Services -- Assist Company personnel with the communications and negotiations with lenders, creditors, and other parties-in- interest including the preparation of financial information for distribution to such parties-in-interest. -- Lead the compilation and preparation of financial information, statements, schedules and monthly operating reports necessary due to requirements of the Bankruptcy Court and/or Office of the US Trustee. -- Assist the Company and its other advisors with the formulation of a chapter 11 plan of reorganization/liquidation and the preparation of the corresponding disclosure statement. -- Prepare a liquidation analysis for a reorganization plan and negotiation purposes. -- Assist the Company in managing and executing the reconciliation process involving claims filed by all creditors. -- Provide testimony in the chapter 11 case as necessary or appropriate at the Company's request. In the context of the Chapter 11 case, Mr. Hinkelman will continue to operate in the capacity of CRO and he will: -- Report directly to the Board of Directors of the Debtor and make recommendations thereto and consult therewith regarding his activities and the services. -- Work on a collaborative basis with senior executives of the Debtor, coordinate the restructuring efforts of the Debtor, subject to the reporting structure above, including the identification, development, and implementation of strategies related to the Debtor's debt obligations, business plan, and other related matters. -- In consultation with the Debtor's senior executives, coordinate and manage the services as discussed above and the FTI professional staff on the engagement. To address and handle the responsibilities on behalf of the Debtor, he will be assisted by Additional Personnel provided through FTI at various levels. These FTI employees will provide restructuring services to the Debtor as additional personnel: 1. Brandon Beal - managing director. Mr. Beal's services will include engagement oversight, cash management, financial reporting, budgeting and financial analysis, third party negotiations, among other services as contemplated by the Engagement Contract. 2. Zach Contreras - consultant. Mr. Contreras's services will include cash management and variance reporting, landlord financial review, accounting assistance, projection modeling, among other services as contemplated by the Engagement Contract. 3. Will Breashears - consultant (part time). Mr. Breashears' services will include Bankruptcy reporting. Per the terms of the Engagement Contract, FTI commenced providing services on or about Aug. 5, 2015. FTI invoiced the Debtor for crisis management related services and received payments. FTI has waived the right to payment of any and all claims that were not paid. To the best of the Debtors' knowledge, neither FTI, nor Mr. Hinkelman represents an interest adverse to the Debtor's estate with respect to the matters upon which they are to be engaged. Objection of the U.S. Trustee On Oct. 29, 2015, Tracy Hope Davis, the U.S. Trustee for Region 17, requested that the Court deny the CRO motion because the Debtor sought to employ FTI and Mr. Hinkleman as its corporate restructuring officer under Section 363. Rather than seek employment under Section 327(a) as an estate professional. The motion and supporting documents fail to provide the transparency and disclosures necessary to evaluate the relief requested. The Court on Oct. 29, vacated an order approving the engagement contract of FTI as improvidently entered. The vacated order was entered on Oct. 21, 2015. On Oct. 16, Mr. Hinkelman submitted a supplemental declaration stating that the original declaration filed in support of the motion contains an error in the final bullet point of paragraph 13. When the monies held in Pachulski Stang Ziehl & Jones LLP's trust account for professional fees were allocated prepetition, $60,000 (not $65,000), was used by FTI to pay fees and expenses incurred prior to the petition date. The U.S. Trustee is represented by: Donna S. Tamanaha, Esq. Assistant United States Trustee Julie M. Glosson, Esq. Trial Attorney United States Department of Justice Office of the U.S. Trustee 235 Pine Street, Suite 700 San Francisco, CA 94104 Tel: (415) 705-3333 Fax: (415) 705-3379 E-mail: julie.m.glosson@usdoj.gov The Debtor is represented by: John D. Fiero, Esq. Debra I. Grassgreen, Esq. John W. Lucas, Esq. Jason H. Rosell, Esq. PACHULSKI STANG ZIEHL & JONES LLP 150 California Street, 15th Floor San Francisco, CA 94111 Tel: (415) 263-7000 Fax: (415) 263-7010 E-mails: jfiero@pszjlaw.com dgrassgreen@pszjlaw.com jlucas@pszjlaw.com jrosell@pszjlaw.com Mr. Hinkelman may be reached at: Andrew J. Hinkelman Senior Managing Director FTI CONSULTING Tel: (415) 283-4200 Fax: (415) 293-4497 Email: andrew.hinkelman@fticonsulting.com Mr. Beal may be reached at: Brandon Beal Managing Director FTI CONSULTING Tel: (415) 283-4200 Fax: (415) 293-4497 Email: brandon.beal@fticonsulting.com About NewZoom Headquartered in San Francisco, California, NewZoom, doing business as ZoomSystems, operates an automated retail channel. It operates ZoomShops, a custom-branded automated self-service retail stores that facilitates online shopping. It has ZoomShop network locations in airports, malls, resorts, military bases, and retail stores in the United States, Europe, and Japan. The Debtor employs approximately 115 people. NewZoom, Inc. filed Chapter 11 bankruptcy petition (Bankr. N.D. Calif. Case No. 15-31141) on Sept. 10, 2015. The petition was signed by John A. Lawrence, the president and CEO. The case is assigned to Judge Hannah L. Blumenstiel. The Debtor estimated assets and liabilities in the range of $10 million to $50 million. Pachulski Stang Ziehl & Jones LLP serves as counsel to the Debtor. Prime Clerk LLC acts as the claims and noticing agent. The Official Committee of Unsecured Creditors tapped Sheppard Mullin Richter & Hampton LLP as attorneys. MIHI LLC is providing $3.7 million to finance the Chapter 11 effort. NNN DORAL COURT 3: Trustee Serving as Plan Administrator -------------------------------------------------------- Barry E. Mukamal, the Chapter 11 Trustee of NNN Doral Court 3, LLC, et al., won an order confirming his proposed Plan of Liquidation for the Debtors. No party-in-interest objected to the Chapter 11 Trustee Affidavit or requested any cross-examination of the Chapter 11 Trustee at the confirmation hearing. The Plan provides that the secured tax claims, the secured claims, unsecured claims, and holders of equity interests are unimpaired. The claim holders are to be paid from the proceeds of the sale of the Debtors' property. The Plan provides that Mr. Mukamal will serve as Plan Administrator after the post-confirmation Effective Date of the Plan. A copy of the Plan of Liquidation is available at: http://bankrupt.com/misc/NNN_Doral_172_Plan.pdf A copy of the Plan Confirmation Order is available at: http://bankrupt.com/misc/NNN_Doral_216_Plan_Conf_Order.pdf The Chapter 11 Trustee's attorneys: KOYAK TROPIN & THROCKMORTON, LLP Charles W. Throckmorton, Esq. David Samole, Esq. 2525 Ponce De Leon Blvd., 9th Floor Miami, Florida 33134 Tel: (305) 372-1800 E-mail: cwt@kttlaw.com das@kttlaw.com About NNN Doral Court 3 NNN Doral Court 3, LLC, et al., are tenants in common, who own as their primary asset a 209,000 sq. ft. commercial office building and approximately 9.4 acres of land located at 8600 N.W. 36th Street, Doral, Florida 33166. NNN Doral Court 3, LLC, and 28 affiliates filed for Chapter 11 protection (Bankr. S.D. Fla.) on Aug. 6, 2015. The petitions were signed by Randy George, manager and authorized bankruptcy representative. On Aug. 11, 2015, the Court entered an order jointly administering the related bankruptcy cases, designating Case No. 15-24228 as the lead case. Geoffrey S. Aaronson, Esq., Jeremy D. Evans, Esq., Tamara D. McKeown, Esq., Lawrence M. Schantz, Esq., at Aaronzon Schantz Beiley P.A., serve as counsel to the Debtors. NNN Doral Court 3 estimated assets and debt at $10 million to $50 million. Barry E. Mukamal was appointed as Chapter 11 Trustee. The Trustee tapped Koyak Tropin & Throckmorton, LLP, as counsel. The Trustee also won approval to employ (i) Blaine Vermeulen of All Systems, Inc. d/b/a Vermeulen Associates, as claims consultant and public adjuster; (ii) Michael J. Buzzella and Urban Property Management, LLC as property manager; (iii) William C. Harris, Esq., of Merlin Law Group, P.A., and Andrew D. Wyman, Esq. of Damaso W. Saavedra, P.A. d/b/a Saavedra Goodwin, as special litigation counsel; Donald Ginsburg of Realty Masters Advisors, LLC, as real estate broker; and Jerry Markowitz, as special real estate counsel. NORTH AMERICAN REALTY: Voluntary Chapter 11 Case Summary -------------------------------------------------------- Debtor: North American Realty Group Inc. a Michigan corporation 6339 Jonathan Dearborn, MI 48126 Case No.: 16-44866 Chapter 11 Petition Date: March 31, 2016 Court: United States Bankruptcy Court Eastern District of Michigan (Detroit) Judge: Hon. Walter Shapero Debtor's Counsel: Michael Zeluff, Esq. MICHAEL D. ZELUFF 18501 West Ten Mile Road Southfield, MI 48075 Tel: (586) 489-7987 E-mail: mdzeluff@yahoo.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Rashid Al-Mehdi, president. The Debtor did not include a list of its largest unsecured creditors when it filed the petition. NORTH LAS VEGAS, NV: Fitch Affirms 'B' Rating on LTGO Bonds ----------------------------------------------------------- Fitch Ratings has affirmed the following North Las Vegas, NV (the city) limited tax general obligations (LTGOs) at 'B': -- $128.4 million LTGO bonds (additionally secured by consolidated tax pledged revenues); -- $278.4 million LTGO water and wastewater improvement bonds (additionally secured by water and wastewater system pledged revenues). The Rating Outlook is Stable. SECURITY The bonds are backed by the full faith and credit of the city, subject to Nevada's constitutional and statutory limitations on the aggregate amount of ad valorem property taxes. As noted above, the bonds are additionally backed either by an irrevocable pledge of and lien on certain consolidated tax revenues (15% of these revenues) or by water/wastewater system net revenues. KEY RATING DRIVERS MEANINGFUL SOLUTIONS OUTSIDE CITY CONTROL: The 'B' rating continues to reflect Fitch's view that the city has virtually no remaining budget flexibility. Given tax caps and the scope of service cuts already made, Fitch believes any meaningful solutions are outside the city's control. UTILITY PROVIDES CRUCIAL LIQUIDITY: Unrestricted balances in the utility fund serve as the city's only meaningful source of liquidity and are at just adequate levels to support governmental operations over the intermediate term. Under current state law, these must be eliminated by fiscal 2021. WEAK AND CONCENTRATED ECONOMY; FUTURE UNCERTAIN: The city and region's economy were among the hardest hit in the U.S. by the collapse of the housing market with a combined loss of 56% of taxable assessed valuation (TAV). While TAV has rebounded some, Fitch is concerned that long-term economic growth will remain weak. GROWING LONG-TERM LIABILITIES: Debt is high relative to the tax base, amortization is slow and debt service is escalating in the intermediate term. Carrying costs, including debt and retiree liabilities, are expected to increase with rising debt and pension payments. NO ENHANCEMENT FOR ADDITIONAL PLEDGES: Fitch does not believe the additional pledges of consolidated tax and water/wastewater revenues provide sufficient additional strength to warrant higher ratings than that of the LTGO given the ongoing use of utility cash to support general fund operations. RATING SENSITIVITIES TRANSFER REDUCTION: Positive rating action could result if the city is able to implement a medium-term plan to address the required reduction in utility transfers by fiscal 2021. ECONOMIC VULNERABILITY: Fitch believes the fragile economy leaves the city ill-prepared to manage any further contractions before the economy has more fully recovered. A near-term down cycle in the economy would likely result in further financial stress and a rating downgrade. CREDIT PROFILE North Las Vegas encompasses approximately 100 square miles in Clark County with a population of 227,585. The city is approximately 43% built out with a large quantity of undeveloped land. The city has nearly doubled in population since 2000 but growth slowed with the housing and economic downturn. The regional economy is dominated by tourism and gaming, both of which experienced significant revenue and employment declines but appear to be stabilizing. STRUCTURAL IMBALANCE; HEALTHY UTILITY BALANCES SUPPORT LIQUIDITY The city's forecast through fiscal 2020 (updated December 2015) is improved from a September 2014 forecast in that it indicates nearly balanced operations assuming current minimal staffing levels and continued fairly level subsidies from the utility funds. In this scenario, the estimated fund balance remains positive at 5.7% in fiscal 2020, down from 10% at fiscal-year end 2016. The subsidy represented about 18% of total general fund revenues in fiscal 2015. However, under a scenario including the continued utility fund subsidies but contemplating realistic increases in staffing levels to support modest economic growth, the deficit grows to $107 million by fiscal 2020. Ongoing utility transfers have resulted in low cash flow to depreciation rates and indicating that the utility does not generate sufficient cash to fund system maintenance. However, Fitch-calculated all-in debt service coverage increased to an average of 1.5x after transfers the three years ending fiscal 2015 from less than 1x from fiscals 2010 through 2012. Unrestricted utility cash balances have averaged approximately $50 million or 436 days cash over the last five years. Management expects continued annual rate increases of approximately 3%. The city believes that general fund revenue growth from anticipated residential and commercial development will eventually allow it to reduce its dependence on utility transfers as required by the state. Fitch views this solution as highly uncertain given economic cyclicality. NEAR-TERM BUDGET BALANCE FOLLOWING SEVERE BUDGET STRESS The city's financial position improved in fiscal 2015 with a general fund surplus of $4.5 million resulting in a fund balance of $12.6 million, equal to 9.8% of spending and transfers and meeting this city's requirement of 8%. Revenues improved primarily due to a $3.7 million (8%) increase in consolidated tax revenue combined with flat spending. Management estimates a small surplus for fiscal 2016. The recent stability follows a period of severe budgetary stress. During the recession, the city experienced several years of large operating deficits through fiscal 2011. After two years of minor surpluses, fiscal 2014 ended with an unrestricted general fund balance equal to the city's reduced policy requirement of 6% of spending. General fund fiscal 2015 year-end cash was less than half of liabilities (less deferred revenue) for the fifth consecutive year. Although nominal cash increased about $2 million to $4.6 million, liabilities also increased. However, the city has access to approximately $50 million in utility funds borrowing (as of fiscal year-end 2015). The city was able to pass the fiscal 2015 and 2016 budgets due to temporary budgetary relief resulting from the union's agreement to defer drawing on compensated absences in fiscal 2015 as well as delayed hiring and departmental budget cuts. The city is currently in negotiations with its two largest bargaining units and management expects continued flat compensation. VERY LIMITED REVENUE & EXPENDITURE FLEXIBILITY Fitch believes the city retains virtually no additional expenditure flexibility, having eliminated about 800 full-time equivalent positions (35% since the peak in 2009) through attrition and voluntary separation and layoffs. Management reports that the city's current staffing level is unsustainable over the long term even without economic growth. Under the state property tax cap, the city could only raise about $1 million from a property tax rate increase, leaving the city dependent on economic growth or a change to state law to increase its revenue base. General fund revenues increased in fiscals 2014 and 2015 after five consecutive years of declines. The revenue increases of 15.8% and 8.3% (not including utility transfers) in fiscals 2014 and 2015, respectively) were primarily due to improved consolidated tax revenues as well as licenses and permits reflecting improvements in the economy. However, revenues remain just 66% of the peak level in fiscal 2015. NEAR TERM STATE INVOLVEMENT APPEARS UNLIKELY Fitch believes the likelihood of state intervention remains low. State law bars Nevada municipalities from filing for bankruptcy, but allows for the state to become the receiver. The Nevada Tax Commission could also eventually ask voters to approve disincorporation. Current statute requires that taxes for bond repayment continue to be levied under disincorporation. However, under state receivership, the statute directs the state to formulate a debt liquidation program. Management expects to request that the state defer or delay the requirement that the city eliminate the utility transfers by fiscal 2021. ELEVATED LONG-TERM LIABILITIES In part due to the steep decline in TAV, overall debt levels including the water and wastewater GO bonds are above average at 5.5% of the tax base. In addition, amortization is slow with only 34% of principal retired within 10 years and an ascending debt service schedule in the intermediate term. Carrying costs currently consume a relatively moderate 19.2% of governmental spending. However, Fitch expects the burden to increase as both debt service and retirement benefit costs rise. The city participates in Public Employees' Retirement System of Nevada (PERS), which has a relatively low funded ratio of 68.7% using a Fitch-adjusted 7% discount rate. The city makes its annual required statutorily determined pension contributions. The city's liability related to other post-employment benefits (OPEBs) is approximately $13 million. STRESSED ECONOMY The city's tax base grew rapidly through fiscal 2009 before declining 56% from fiscal years 2010-2013. It has since rebounded a significant 38%, but remains about 60% of the 2009 peak. The city's housing market continues to experience high foreclosure rates relative to state and national averages as, despite recent increases, home prices are still more than 40% below their 2006 peak. Fitch expects only gradual improvement at best and believes economic contraction before the city has further regained its economic footing would stress revenues and the bond rating even further. The city and regional economies are concentrated in gaming; most major employers and taxpayers are hotel/casinos. Employment in the city experienced a steep decline in 2010 but has since more than recovered the jobs lost. Nonetheless, the city's unemployment rate of 7.2% as of January 2015 was well above the county and state (both 6.5%), as well as the nation (5.2%). Median household income is slightly above the state and slightly below the nation, but per capita income is 17% below both state and 26% below national averages. NORTHWEST TERRITORIAL: Case Summary & 20 Top Unsecured Creditors ---------------------------------------------------------------- Debtor: Northwest Territorial Mint LLC P.O. Box 2148 Auburn, WA 98071-2148 Case No.: 16-11767 Type of Business: Designs and manufactures minted products Chapter 11 Petition Date: April 1, 2016 Court: United States Bankruptcy Court Western District of Washington (Seattle) Judge: Hon. Christopher M Alston Debtor's Counsel: J Todd Tracy, Esq. THE TRACY LAW GROUP PLLC 720 Olive Way Ste 1000 Seattle, WA 98101 Tel: 206-624-9894 E-mail: todd@thetracylawgroup.com Estimated Assets: $10 million to $50 million Estimated Debts: $10 million to $50 million The petition was signed by Ross B. Hansen, member. List of Debtor's 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Bradley Steven Cohan Judgment $7,000,000 c/o Anthony Michael Glassman 360 N Bedford Dr Beverly Hills, CA 90210 Bud Jameson $575,077 12 Post Oak Loop Sherwood, AR 72120-3700 Cohen Asset $5,500,000 Management, Inc. c/o Anthony Michael Glassman 360 N Bedford Dr Beverly Hills, CA 90210 David James $1,244,991 16855 James Lane Bend, OR 97703 Don Wright Leased Metal $517,359 13820 NE 65th #546 Redmond, WA 98052 Dr. Bob Austin Leased Metals $901,795 c/o Ross Jones 106 Del Ray Rd Mossyrock, WA 98564 Eva Rosman $429,370 2916 Glen Ave Baltimore, MD 21215 John Anderson $287,147 8 East Oakwood Hills Drive Chandler, AZ 85248 Larry Chiappellone $325,400 18457 Barrett Ave Sonoma, CA 95476 Liedtke Associates LP Metal Lease $291,189 Norman Liedtke 671 Lakeside Circle Apt 902 Pompano Beach, FL 33060 Maria Kroupa Leased Metal $971,861 30982 Sanjay Ct Temecula, CA 92591 Michael & Mary Bernard $343,290 14035 NE 5th Street Bellevue, WA 98007 Mike Ray Howard Leased Metal $318,974 1415 293rd Ave NE Carnation, WA 98014 Richard Pehl $605,623 813 Barnhart St Raymond, WA 98577-4501 Rodger Overson $427,707 2750 S.W. 312th Pl. Federal Way, WA 98023 Simon Ginsberg TTE Leased Metal $257,706 225 W 106th St. #16B New York, NY 10025 Steven Fox $1,769,010 25 Cushing Dr Mill Valley, CA 94941 William L Hanson Leased Metals $436,227 POB 64655 Tacoma, WA 98464-0655 Yong Tuo $292,327 Emblem Co. Ltd. No. 16 ShengYu Road, ShengFeng District Xiao Lan Town, Zhong Shan City Gung Dong 528414 China Young deNormandie PC $800,370 Second & Seneca Building 1191 Second Ave., Suite 1901 Seattle, WA 98101-2993 NOVINDA CORP: Case Summary & 20 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: Novinda Corp. 999 18th Street, Suite 1755, North Tower Denver, CO 80202 Case No.: 16-13083 Chapter 11 Petition Date: April 1, 2016 Court: United States Bankruptcy Court District of Colorado (Denver) Judge: Hon. Elizabeth E. Brown Debtor's Counsel: Joshua M. Hantman, Esq. BROWNSTEIN HYATT FARBER SCHRECK, LLP 410 17th St., Ste. 2200 Denver, CO 80202 Tel: 303.223.1216 Fax: 303.223.1111 E-mail: jhantman@bhfs.com Estimated Assets: $500,000 to $1 million Estimated Liabilities: $1 million to $10 million The petition was signed by Michael J. Rosenberg, interim chief executive officer. A list of the Debtor's 20 largest unsecured creditors is available for free at http://bankrupt.com/misc/cob16-13083.pdf NUO THERAPEUTICS: Has Final Court OK to Tap $6-Mil. DIP Financing ----------------------------------------------------------------- The Hon. Mary F. Walrath of the U.S. Bankruptcy Court for the District of Delaware has entered a final order authorizing Nuo Therapeutics, Inc., to obtain up to $6,000,000 in aggregate postpetition senior secured super-priority debtor-in-possession financing from Deerfield Mgmt, LP. The Court also gave the Debtor final authority to use cash collateral securing its prepetition indebtedness. Deerfield Mgmt, L.P., acts as administrative agent and collateral agent under a Senior Secured, Superpriority Debtor-In-Possession Credit Agreement. The prepetition secured parties, namely: Deerfield Private Design Fund II, L.P., Deerfield Private Design International II, L.P., and Deerfield Special Situations Fund, L.P., et al., serve as the debtor-in-possession lenders. The DIP Facility will mature on the earliest of: (i) the stated maturity date, which will be March 31, 2016; (ii) the date on which the sale of the Debtor's assets will have been consummated; (iii) the date that is 20 days after the entry of the Interim Order, unless on or before that day the Bankruptcy Court shall have entered the Final Order; and (iv) the acceleration of the Loans or termination of the Commitment under this Agreement, including, without limitation, as a result of the occurrence of an event of default. The outstanding principal amount of the Loans will bear interest of 12 percent. If an Event of Default has occurred and is continuing, the Debtor shall pay, in respect of principal and interest on the Loans outstanding under this Agreement, at the rate per annum equal to the Interest Rate applicable thereto plus 10 percent for so long as such Event of Default is continuing. Objections Overruled Judge Walrath overruled the objections raised by the United States Trustee, the Official Committee of Unsecured Creditors, and the Ad Hoc Equity Committee. The Objectors oppose to those portions of the DIP Motion seeking to pay Deerfield an expense reimbursement of up to $300,000 for being excessive. Given Deerfield's prior relationship with the Debtor, its expenses relating to its bid are not likely to approach $300,000 and requiring other bidders to bid the full amount of this excessive expense reimbursement may have a chilling effect on the bid process, the Objectors asserted. The Official Committee of Unsecured Creditors is represented by: Donald J. Detweiler, Esq. John H. Schanne, II, Esq. PEPPER HAMILTON LLP Hercules Plaza, Suite 5100 1313 Market Street Wilmington, DE 19899-1709 Telephone: (302) 777-6500 Facsimile: (302) 421-8390 E-mail: detweilerd@pepperlaw.com schannej@pepperlaw.com -- and -- Francis J. Lawall, Esq. PEPPER HAMILTON LLP 3000 Two Logan Square 18th & Arch Streets Philadelphia, PA 19103-2799 Telephone: (215) 981-4451 Facsimile: (215) 981-4750 Email: lawallf@pepperlaw.com Andrew R. Vara, Acting United States Trustee for Region Three is represented by: Juliet Sarkessian, Esq. Trial Attorney UNITED STATES DEPARTMENT OF JUSTICE OFFICE OF THE UNITED STATES TRUSTEE J. Caleb Boggs Federal Building 844 King Street, Suite 2207, Lockbox 35 Wilmington, DE 19801 Telephone: (302) 573-6491 Facsimile: (302) 573-6497 Email: Juliet.M.Sarkessian@usdoj.gov The Ad Hoc Equity Committee is represented by: Tara L. Lattomus, Esq. ECKERT SEAMANS CHERIN & MELLOTT, LLC 222 Delaware Street, 7th Floor Wilmington, Delaware 19801 Telephone: 302-574-7400 Telefax: 302-574-7401 Email: tlattomus@eckertseamans.com -- and -- Steve Jakubowski, Esq. ROBBINS SALOMON & PATT, LTD. 180 N. LaSalle Street, Suite 3300 Chicago, Illinois 60601 Telephone: 312-456-0191 Telefax: 312-782-6690 Email: sjakubowski@rsplaw.com About NUO Therapeutics Nuo Therapeutics, Inc. filed a Chapter 11 bankruptcy petition (Bankr. D. Del. Case No. 16-10192) on Jan. 26, 2016. The petition was signed by David E. Jorden as acting chief executive officer and acting chief financial officer. Ashby & Geddes, P.A. represents the Debtor as counsel and Epiq Bankruptcy Solutions, LLC serves as the Debtor's claims, balloting and noticing agent. Hon. Mary F. Walrath has been assigned the case. The U.S. Trustee for Region 2 originally appointed three members to the Official Committee of Unsecured Creditors. The U.S. Trustee, on March 14, 2016, said New Hampshire Ball Bearings, Inc., has resigned from the Committee. The remaining committee members are AAPC and CPA Global Limited. Nuo Therapeutics, Inc., on March 29 disclosed that the United States Bankruptcy Court for the District of Delaware entered an Order granting conditional approval to the Company's Disclosure Statement for the First Amended Plan of Reorganization in the ongoing Chapter 11 bankruptcy case. The Court also approved an expedited pathway to the Company's emergence from Chapter 11 by scheduling a combined hearing on April 25, 2016 to consider the adequacy of the Disclosure Statement and confirmation of the Company's proposed First Amended Plan of Reorganization. OMNICOMM SYSTEMS: Posts $2.40 Million Net Income for 2015 --------------------------------------------------------- OmniComm Systems, Inc., filed with the Securities and Exchange Commission its annual report on Form 10-K disclosing net income attributable to common stockholders of $2.40 million on $20.7 million of total revenues for the year ended Dec. 31, 2015, compared to a net loss attributable to common stockholders of $4.66 million on $16.5 million of total revenues for the year ended Dec. 31, 2014. As of Dec. 31, 2015, OmniComm had $6.31 million in total assets, $27.7 million in total liabilities and a total shareholders' deficit of $21.4 million. "We have historically experienced negative cash flows and have relied on the proceeds from the sale of debt and equity securities to fund our operations. In addition, we have utilized stock-based compensation as a means of paying for consulting and salary related expenses. At December 31, 2015, we had working capital deficit of approximately $7,577,477," the Company stated in the report. A full-text copy of the Form 10-K is available for free at: http://is.gd/3Nuhgt About OmniComm Systems Ft. Lauderdale, Fla.-based OmniComm Systems, Inc., is a healthcare technology company that provides Web-based electronic data capture ("EDC") solutions and related value-added services to pharmaceutical and biotech companies, clinical research organizations, and other clinical trial sponsors principally located in the United States and Europe. ONEMAIN HOLDINGS: Moody's Affirms B3 CFR on SpringCastle Stake Sale ------------------------------------------------------------------- Moody's Investors Service affirmed the B3 corporate family rating of OneMain Holdings, Inc. and the senior unsecured rating of Springleaf Finance Corporation, as well as the B2 senior unsecured rating of OneMain Financial Holdings, LLC all with a stable outlook, following the company's announced sale of its equity stake in SpringCastle. RATINGS RATIONALE The ratings affirmation follows OneMain Holdings' announced sale of its ownership interest in SpringCastle, a joint venture in which OneMain Holdings owns a 47% equity stake. SpringCastle is an entity that owns a portfolio of $1.6 billion in loans consisting of second-lien residential mortgages and unsecured consumer loans and is currently in a liquidation mode. The transaction will result in meaningful deleveraging for OneMain Holdings, which is a positive credit development. Moody's estimates that OneMain Holdings' capitalization, measured as tangible common equity to tangible assets, will improve to approximately 5% on a pro-forma basis from 3.2% at Dec. 31, 2015. The equity increase results from the elimination of the company's negative non-controlling interest in the joint venture and from a gain on the asset sale. In addition, its debt will decline by $1.9 billion from the elimination of the SpringCastle securitization obligations, which are consolidated on OneMain Holdings' balance sheet. While the deleveraging is a credit positive, the integration of Springleaf Holdings Inc. and OneMain Financial (old OneMain) still presents significant execution challenges given its complexity. In addition, the combined entity has yet to demonstrate the profitability of its franchise -- its 4Q15 results contained significant amounts of acquisition-related charges, which weakened its capitalization relative to Moody's expectations. Upward rating pressure could develop after two or three consecutive quarters of strong, clean results as evidenced by solid profitability, ample liquidity, and successful execution of key integration milestones. The ratings could be upgraded if OneMain Holdings demonstrates consistency in operating results, including solid profitability, and continues to de-lever by building its equity through earnings retention - particularly if it demonstrates a clear path to building capital beyond 6% of tangible common equity to tangible managed assets. OneMain Holdings' ratings could be downgraded as a result of weak performance, which would be evidenced by financial losses and weakening of its capitalization. Ratings could also be downgraded if Moody's believes OneMain Holding's refinancing risk has increased, particularly in light of its $1.9 billion of its debt obligations maturing in 2017. OneMain Financial's ratings are closely aligned with those of OneMain Holdings and therefore would likely be upgraded or downgraded together with the ratings of OneMain Holdings. In addition, OneMain Financial's ratings could be downgraded if its leverage increases substantially, if its profitability meaningfully weakens, or if the structural protections afforded to it through its debt indenture covenants were weakened and no longer provided the credit protection they do today. The actions include: OneMain Holdings, Inc. Corporate Family Rating: B3, affirmed Senior Unsecured Shelf: (P)Caa2, affirmed Subordinated Shelf: (P)Caa3, affirmed Junior Subordinated Shelf: (P)Ca, affirmed Outlook: Stable Springleaf Finance Corporation: LT Issuer: B3, affirmed Senior Unsecured: B3, affirmed Senior Unsecured MTN Program: (P)B3, affirmed Senior Unsecured Shelf: (P)B3, affirmed Subordinated Shelf: (P)Caa1, affirmed Junior Subordinated Shelf: (P)Caa2, affirmed Outlook: Stable OneMain Financial Holdings, LLC: Senior Unsecured: B2, affirmed Outlook: Stable AGFC Capital Trust I BACKED Pref. Stock: Caa2(hyb), affirmed Outlook: Stable The principal methodology used in these ratings was Finance Companies published in October 2015. OXYSURE THERAPEUTICS: Delays Filing of 2015 Annual Report --------------------------------------------------------- OxySure Therapeutics, Inc., filed with the U.S. Securities and Exchange Commission a Notification of Late Filing on Form 12b-25 with respect to its annual report on Form 10-K for the year ended Dec. 31, 2015. The Company said it requires additional time to finalize certain required disclosures and documentation for its Form 10-K for the fiscal year ended Dec. 31, 2015. Accordingly, the Form 10-K cannot be filed within the prescribed time period without unreasonable effort or expense. About OxySure Therapeutics Frisco, Tex.-based OxySure Therapeutics, Inc., formerly known as OxySure Systems, Inc. (OTC QB: OXYS) is a medical technology company that focuses on the design, manufacture and distribution of specialty respiratory and emergency medical solutions. The company pioneered a safe and easy to use solution to produce medically pure (USP) oxygen from inert powders. The Company owns nine issued patents and patents pending on this technology which makes the provision of emergency oxygen safer, more accessible and easier to use than traditional oxygen provision systems. Oxysure Systems reported a net loss of $2.75 million in 2014 following a net loss of $712,000 in 2013. As of Sept. 30, 2015, the Company had $4.42 million in total assets, $2.24 million in total liabilities and $2.18 million in total stockholders' equity. Sadler, Gibb & Associates, LLC, in Salt Lake City, UT, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2014, citing that the Company had accumulated losses of $18.0 million as of Dec. 31, 2014 which raises substantial doubt about its ability to continue as a going concern. PARAGON OFFSHORE: Hires Clyde & Co as Special Counsel ----------------------------------------------------- Paragon Offshore plc and its debtor-affiliates seek authorization from the U.S. Bankruptcy Court for the District Court of Delaware to employ Clyde & Co LLP as special counsel, nunc pro tunc to the February 14, 2016 petition date. The Debtors request that the Court approve the retention of Clyde & Co as special counsel to perform legal services in connection with certain ongoing arbitrations outside the United States during these chapter 11 cases in accordance with the Firm's normal hourly rates in effect when services are rendered and the Firm's normal reimbursement policies. Clyde & Co currently represents the Debtors in two non-bankruptcy matters: the Jindal Arbitration and the NAE Arbitration (together, the "Special Counsel Matters"). Clyde & Co will be paid at these hourly rates: Partners $667-$596 Associates $535-$360 Trainees and Paralegals $250-$170 Clyde & Co will also be reimbursed for reasonable out-of-pocket expenses incurred. Clyde & Co will hold a Clyde & Co Fee Advance of approximately $27,445.68 and the RBQC Fee Advance. David Peter Bennet, partner in Oil and Gas Practice of Clyde & Co, 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. In addition, consistent with the U.S. Trustee Guidelines, Mr. Bennet disclosed that: (a) Clyde & Co did not agree to a variation of its standard or customary billing arrangements for this engagement except for extending a 10% reduction to the Debtors from the outset; (b) None of Clyde & Co's professionals included in this engagement have varied their rate based on the geographic location of these chapter 11 cases; (c) Clyde & Co represented the Debtors for 9 months prior to the Petition Date. The billing rates and material financial terms in connection with such representation have not changed postpetition, other than due to annual and customary firm-wide adjustments to Clyde & Co's hourly rates in the ordinary course of Clyde & Co's business; and (d) Clyde & Co will consult with the Debtors and agree upon an approved budget and staffing plan for Clyde & Co's engagement for the period from the Petition Date through trial, currently schedule at the end of July 2016. Consistent with the U.S. Trustee Guidelines, the budget may be amended as necessary to reflect changed or unanticipated developments. The Bankruptcy Court will hold a hearing on the motion on April 6, 2016, at 10:00 a.m. Objections were due March 30, 2016. Clyde & Co can be reached at: David Peter Bennet, Esq. CLYDE & CO LLP 1 Stoke Road Guildford Surrey GU1 4HW About Paragon Offshore Paragon Offshore plc -- http://www.paragonoffshore.com/-- is a global provider of offshore drilling rigs. Paragon's operated fleet includes 34 jackups, including two high specification heavy duty/harsh environment jackups, and six floaters (four drillships and two semisubmersibles). Paragon's primary business is contracting its rigs, related equipment and work crews to conduct oil and gas drilling and workover operations for its exploration and production customers on a dayrate basis around the world. Paragon's principal executive offices are located in Houston, Texas. Paragon is a public limited company registered in England and Wales and its ordinary shares have been trading on the over- the-counter markets under the trading symbol "PGNPF" since December 18, 2015. Paragon Offshore Plc, et al., filed separate Chapter 11 bankruptcy petitions (Bankr. D. Del. Case Nos. 16-10385 to 16- 10410) on Feb. 14, 2016, after reaching a deal with lenders on a reorganization plan that would eliminate $1.1 billion in debt. The petitions were signed by Randall D. Stilley as authorized representative. Judge Christopher S. Sontchi is assigned to the cases. The Debtors reported total assets of $2.47 billion and total debts of $2.96 billion as of Sept. 30, 2015. The Debtors have engaged Weil, Gotshal & Manges LLP as general counsel, Richards, Layton & Finger, P.A. as local counsel, Lazard Freres & Co. LLC as financial advisor, Alixpartners, LLP as restructuring advisor, and Kurtzman Carson Consultants as claims and noticing agent. PARAGON OFFSHORE: Hires Weil Gotshal as Attorneys ------------------------------------------------- Paragon Offshore plc and its debtor-affiliates seek authorization from the U.S. Bankruptcy Court for the District Court of Delaware to employ Weil, Gotshal & Manges LLP as attorneys, nunc pro tunc to the February 14, 2016 petition date. The Debtors require Weil Gotshal to: (a) take all necessary action to protect and preserve the Debtors' estates, including the prosecution of actions on the Debtors' behalf, the defense of any actions commenced against the Debtors, the negotiation of disputes in which the Debtors are involved and the preparation of objections to claims filed against the Debtors' estates; (b) prepare on behalf of the Debtors, as debtors in possession, all necessary motions, applications, answers, orders, reports and other papers in connection with the administration of the Debtors' estates; (c) take all necessary actions in connection with any chapter 11 plan and related disclosure statement and all related documents, and such further actions as may be required in connection with the administration of the Debtors' estates; (d) take all necessary action to protect and preserve the value of the Debtors' estates, including advising with respect to the Debtors' affiliates in the United States and abroad and all related matters; and (e) perform all other necessary legal services in connection with the prosecution of these chapter 11 cases. Weil Gotshal will be paid at these hourly rates: Members and Counsel $910-$1,350 Associates $490-$885 Paraprofessionals $210-$350 Weil Gotshal will also be reimbursed for reasonable out-of-pocket expenses incurred. Prior to the Petition Date, Weil received payments and advances totaling approximately $6.15 million for professional services performed and to be performed, including the commencement and prosecution of these chapter 11 cases. Weil has a remaining credit balance in favor of the Debtors for future professional services to be performed, and expenses to be incurred, in connection with these chapter 11 cases of approximately $481,000. Stephen A. Youngman, member of Weil Gotshal, 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. Consistent with the U.S. Trustee Guidelines, Mr. Youngman disclosed that: -- Weil did not agree to any variations from, or alternatives to, its standard or customary billing arrangements for this engagement; -- None of Weil's professionals included in this engagement have varied their rate based on the geographic location for these chapter 11 cases; -- Weil has represented the Debtors since August 2015. The billing rates and material financial terms of Weil's engagement have not changed postpetition from the prepetition arrangements; -- Weil, in conjunction with the Debtors, is developing a prospective budget and staffing plan for these chapter 11 cases for the period beginning February 2016 and ending June 2016. Weil and the Debtors will review such budget following the close of the budget period to determine a budget for the following period. The Bankruptcy Court will hold a hearing on the motion on April 6, 2016, at 10:00 a.m. Objections were due March 28, 2016. Weil Gotshal can be reached at: Stephen A. Youngman, Esq. WEIL, GOTSHAL & MANGES LLP 767 Fifth Avenue New York, NY 10153 Tel: (212) 310-8000 Fax: (212) 310-8007 About Paragon Offshore Paragon Offshore plc -- http://www.paragonoffshore.com/-- is a global provider of offshore drilling rigs. Paragon's operated fleet includes 34 jackups, including two high specification heavy duty/harsh environment jackups, and six floaters (four drillships and two semisubmersibles). Paragon's primary business is contracting its rigs, related equipment and work crews to conduct oil and gas drilling and workover operations for its exploration and production customers on a dayrate basis around the world. Paragon's principal executive offices are located in Houston, Texas. Paragon is a public limited company registered in England and Wales and its ordinary shares have been trading on the over- the-counter markets under the trading symbol "PGNPF" since December 18, 2015. Paragon Offshore Plc, et al., filed separate Chapter 11 bankruptcy petitions (Bankr. D. Del. Case Nos. 16-10385 to 16- 10410) on Feb. 14, 2016, after reaching a deal with lenders on a reorganization plan that would eliminate $1.1 billion in debt. The petitions were signed by Randall D. Stilley as authorized representative. Judge Christopher S. Sontchi is assigned to the cases. The Debtors reported total assets of $2.47 billion and total debts of $2.96 billion as of Sept. 30, 2015. The Debtors have engaged Weil, Gotshal & Manges LLP as general counsel, Richards, Layton & Finger, P.A. as local counsel, Lazard Freres & Co. LLC as financial advisor, Alixpartners, LLP as restructuring advisor, and Kurtzman Carson Consultants as claims and noticing agent. PARAGON OFFSHORE: Wants to Pay Advisors' Professional Fees ---------------------------------------------------------- Paragon Offshore PLC and its affiliated debtors ask the U.S. Bankruptcy Court for the District of Delaware to authorize the Debtors to pay the reasonable documented postpetition fees and expenses of the advisors to the Consenting Noteholders in accordance with the terms of the Plan Support Agreement and applicable Fee Letters. The Debtors relate that prior to the Petition Date, they engaged in extensive negotiations with certain key stakeholders over the terms of a potential restructuring of the Debtors' business. The Debtors further relate that as a condition of entering into negotiations regarding a potential restructuring of the Debtors' business, the Consenting Noteholders requested, and the Debtors agreed to pay, the reasonable documented fees and expenses of certain of the advisors to the Consenting Noteholders ("Professional Fees"). The Debtors tell the Court that the negotiations ultimately led to consensus on the terms of a financial restructuring that will reduce the Debtors' debt by more than $1 billion, allow the Debtors' equity holders to retain 65% of the equity of the Reorganized Debtors, and provide the Debtors with sufficient liquidity. The terms of the restructuring are memorialized in a Plan Support Agreement and embodied in the Debtors' Joint Chapter 11 Plan. The Debtors aver that the Plan Support Agreement is supported by the beneficial holders ("Consenting Noteholders") of over two-thirds in amount of both the 6.75% Senior Notes due 2022 and the 7.25% Senior Notes due 2024 issued under an Indenture, between Paragon Offshore PLC, as issuer, each of the guarantors named therein, and Deutsche Bank Trust Company Americas, as indenture trustee,("Indenture"), and creditors ("Consenting Revolver Lenders") holding over two-thirds in outstanding principal amount of loans under the Secured Revolving Credit Agreement, between Paragon Offshore PLC and Paragon International Finance Company, as borrowers, the lenders and issuing banks party thereto, and JPMorgan Chase Bank, N.A., as administrative agent ("Revolving Credit Agreement"). The Debtors further aver that under the Plan Support Agreement, the Consenting Creditors have agreed to, among other things, support the Proposed Plan and to forbear from exercising any rights or remedies under the Revolving Credit Agreement or the Indenture with respect to their loans or Notes resulting from certain actual or potential defaults or events of default specified therein. The Debtors have agreed to pay the following Professional Fees, in accordance with existing fess letters: (a) In connection with the fee letter with Paul, Weiss, Rifkind, Wharton & Garrison LLP, as U.S. Counsel to the Consenting Noteholders, the Debtors paid Paul Weiss a $175,000 stay-ahead retainer prepetition, which Paul Weiss may debit if the Debtors do not timely pay an invoice. In the event of a debit of the retainer, the Debtors are required to promptly replenish the retainer to its original level. In addition, the Debtors have agreed to be responsible for payment of the reasonable fees, costs and expenses of foreign counsel retained by Paul Weiss. (b) In connection with the fee letter with Ducera Partners LLC, as financial advisor to the Consenting Noteholders, the Debtors have agreed to pay Ducera the following: (i) a monthly fee of $150,000; (ii) a deferred fee of $3,500,000, payable upon the consummation of any Transaction; and (iii) reimbursement for all reasonable, customary, and documented expenses upon request. (c) In connection with the fee letters with Ashurst LLP, as English counsel to the Consenting Noteholders, the Debtors have agreed to pay Ashurst within 20 business days after receipt of an invoice, the reasonable legal fees and expenses incurred by Ashurst in connection with its representation of the Consenting Noteholders in the chapter 11 cases with payment in full due upon the closing of any restructuring involving the Consenting Noteholders. (d) In connection with the fee letter with Creel, Garcia-Cuellar, Aiza y Enriquez, S.C., as Mexican counsel to the Consenting Noteholders, the Debtors agreed to pay Creel within 20 business days after receipt of an invoice the reasonable legal fees and expenses incurred by Creel for Mexican tax law advice provided to the Consenting Noteholders in connection with a potential restructuring of the Notes with payment in full due upon the closing of any restructuring involving the Consenting Noteholders. (e) In connection with the fee letter with Young Conaway Stargatt & Taylor, LLP, as Delaware counsel to the Consenting Noteholders, the Debtors have agreed to pay Young Conaway within 20 business days after receipt of an invoice the reasonable legal fees and expenses incurred by Young Conaway in connection with its representation of the Consenting Noteholders in the chapter 11 cases, with payment in full due upon the closing of any Transaction involving the Consenting Noteholders. Prepetition, the Debtors paid Young Conaway a $25,000 stay-ahead retainer, which Young Conaway may debit if the Debtors do not timely pay an invoice. In the event of a debit of the retainer, the Debtors are required to promptly replenish the retainer to its original level. The Debtors seek authority to continue to pay the postpetition Professional Fees of the Advisors on a current basis in compliance with their obligations under the Plan Support Agreement. The Debtors contend that their payment of the Professional Fees pursuant to the terms of the Plan Support Agreement constitutes a sound exercise of business judgment and is in their best interests. The Motion is scheduled for hearing on April 6, 2016 at 4:00 p.m. The deadline for the filing of objections to the Motion is set on March 30, 2016 at 4:00 p.m. Paragon Offshore PLC and its affiliated debtors are represented by: Mark D. Collins, Esq. Amanda R. Steele, Esq. RICHARDS, LAYTON & FINGER, P.A. One Rodney Square 920 North King Street Wilmington, DE 19801 Telephone: (302)651-7700 Facsimile: (302)651-7701 E-mail: collins@rlf.com steele@rlf.com - and - Gary T. Holtzer, Esq. Stephen A. Youngman, Esq. WEIL, GOTSHAL & MANGES LLP 767 Fifth Avenue New York, NY 10153 Telephone: (212)310-8000 Facsimile: (212)310-8007 E-mail: gary.holtzer@weil.com stephen.youngman@weil.com About Paragon Offshore PLC Paragon Offshore plc -- http://www.paragonoffshore.com/-- is a global provider of offshore drilling rigs. Paragon's operated fleet includes 34 jackups, including two high specification heavy duty/harsh environment jackups, and six floaters (four drillships and two semisubmersibles). Paragon's primary business is contracting its rigs, related equipment and work crews to conduct oil and gas drilling and workover operations for its exploration and production customers on a dayrate basis around the world. Paragon's principal executive offices are located in Houston, Texas. Paragon is a public limited company registered in England and Wales and its ordinary shares have been trading on the over- the-counter markets under the trading symbol "PGNPF" since December 18, 2015. Paragon Offshore Plc, et al., filed separate Chapter 11 bankruptcy petitions (Bankr. D. Del. Case Nos. 16-10385 to 16- 10410) on Feb. 14, 2016, after reaching a deal with lenders on a reorganization plan that would eliminate $1.1 billion in debt. The petitions were signed by Randall D. Stilley as authorized representative. Judge Christopher S. Sontchi is assigned to the cases. The Debtors reported total assets of $2.47 billion and total debts of $2.96 billion as of Sept. 30, 2015. The Debtors have engaged Weil, Gotshal & Manges LLP as general counsel, Richards, Layton & Finger, P.A. as local counsel, Lazard Freres & Co. LLC as financial advisor, Alixpartners, LLP as restructuring advisor, and Kurtzman Carson Consultants as claims and noticing agent. PATSY JEAN: Voluntary Chapter 11 Case Summary --------------------------------------------- Debtor: Patsy Jean Foundation, Ltd. 107 Bob Jones Court Pottsboro, TX 75076 Case No.: 16-40565 Chapter 11 Petition Date: March 31, 2016 Court: United States Bankruptcy Court Eastern District of Texas (Sherman) Debtor's Counsel: Bill F. Payne, Esq. THE MOORE LAW FIRM, L.L.P. 100 North Main Street Paris, TX 75460-4222 Tel: (903) 784-4393 ext. 40 E-mail: lgarner@moorefirm.com bpayne@moorefirm.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $500,000 to $1 million The petition was signed by Kelly Sexton, limited partner. The Debtor did not include a list of its largest unsecured creditors when it filed the petition. PHILADELPHIA SCHOOL: Moody's Affirms Ba3 Rating on $3.1BB GO Debt ----------------------------------------------------------------- Moody's Investors Service has affirmed the Ba3 underlying and Ba2 enhanced ratings on Philadelphia School District, PA's $3.1 billion in outstanding general obligation and GO-secured lease debt. The outlook on both the underlying and enhanced ratings is negative. The Ba3 underlying rating reflects the district's large urban tax base with weak overall socioeconomic profile, moderately high debt burden and manageable pension liability. The rating also incorporates the district's recent budget stabilization due to additional revenues received from the City of Philadelphia (A2 stable) beginning in fiscal 2015 that has helped return the district's reserves to a healthier, but still narrow level. The rating also includes the challenges that the district will continue to face going forward including increasing charter pressures, pensions costs, and the potential loss of various revenue sources in fiscal 2019 making it difficult to maintain structurally balanced budgets in the medium-term, particularly in light of the district's lack of authority to impose property taxes and generate other revenues. The Ba2 enhanced rating reflects the availability of state aid for debt service obligations in light of the commonwealth's chronically late budgets and the lack of clarity surrounding the intercept program's mechanical feasibility in the absence of an approved and implemented budget. Rating Outlook The negative outlook on the underlying rating reflects the continued uncertainty surrounding the fiscal 2017 state budget and the potential impact it could have on the district's financial position and ability to access the capital market, if needed. The outlook also incorporates the upcoming risk associated with the expiration of the LOC waivers in June 2016 that could impact the district's liquidity position or require the district to issue debt to fund this liability. The outlook also includes the district's ongoing difficulties in halting the erosion of its educational services and continued financial challenges. The negative outlook on the enhanced rating is based both on the outlook for the Commonwealth of Pennsylvania (Aa3 negative) and the ongoing uncertainty surrounding the intercept program's funding during budget stalemates. Factors that Could Lead to an Upgrade Attainment of permanent revenue sources to ensure balanced budget Halting the migration of students to charter schools Ability to successfully manage through expiration of LOC waivers while maintaining financial flexibility Stabilization of political environment at state level resulting in the passage of complete and timely budgets Factors that Could Lead to a Downgrade Continued loss of students to charter schools leading to bigger and less flexible cost structure Failure to balance the budget resulting in more limited financial flexibility Inability to obtain new LOC agreements/extensions by June 2016 Legal Security The district's GO bonds are secured by the district's full faith, credit and taxing power. The district's SPSBA lease revenue bonds are secured by lease payments made by the district to the SPSBA. Under the lease agreement with SPSBA, the district covenants that the lease payments represent a full faith, credit and taxing power pledge, and therefore, Moody's currently rate it on parity with the district's GO bonds. Use of Proceeds Not Applicable. Obligor Profile Philadelphia School District is the largest public school district in Pennsylvania and the eighth-largest in the country. The district operates 217 schools with enrollment (excluding charters) of 129,921 in fiscal 2015. The district employs more than 8,200 teachers. Methodology The principal methodology used in the underlying rating was US Local Government General Obligation Debt published in January 2014. The principal methodology used in the enhanced rating was State Aid Intercept Programs and Financings: Pre and Post Default published in July 2013. An additional methodology used in the lease rating was The Fundamentals of Credit Analysis for Lease-Backed Municipal Obligations published in December 2011. PLASTIC2OIL INC: Delays Filing of 2015 Annual Report ---------------------------------------------------- Plastic2Oil, Inc., disclosed in a regulatory filing with the Securities and Exchange Commission it was unable to file its annual report on Form 10-K for the period ended Dec. 31, 2015, within the prescribed time period due to staffing limitations. Additionally, the Company said it encountered difficulties in completing the accounting and reporting for certain disclosures and could not complete the report in sufficient time to permit the filing of the 10-K without unreasonable expense and effort. The Company is seeking to file its Annual Report within the extension period provided under Rule 12b-25, however, due to the delay in the start of the audit, there can be no assurance that the Company will be successful in filing prior to the expiration of the extension period. About Plastic2Oil Plastic2Oil, Inc., formerly JBI Inc., is a North American fuel company that transforms unsorted, unwashed waste plastic into ultra-clean, ultra-low sulphur fuel without the need for refinement. The Company's Plastic2Oil (P2O) is a process designed to provide immediate economic benefit for industry, communities and government organizations with waste plastic recycling challenges. It is also focused on the creation of green employment opportunities and a reduction in the cost of plastic recycling programs for municipalities and business. The Company's fuel products include No. 6 Fuel, No. 2 Fuel (diesel, petroleum distillate), Naphtha, Petcoke (carbon black) and Off-Gases. No. 6 Fuel is heavy fuel used in industrial boilers and ships. No. 2 Fuel is a mid-range fuel known as furnace oil or diesel. Naphtha is a light fuel that is used as a cut feedstock for ethanol or as white gasoline in high and regular grade road certified fuels. Plastic2Oil reported a net loss attributable to common shareholders of $8.51 million on $59,000 of sales for the year ended Dec. 31, 2014, compared to a net loss attributable to common shareholders of $16.8 million on $693,000 of sales for the year ended Dec. 31, 2013. As of Sept. 30, 2015, the Company had $6.37 million in total assets, $9.97 million in total liabilities and a $3.59 million total stockholders' deficit. MNP LLP, in Toronto, Canada, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2014, citing that the Company has experienced negative cash flows from operations since inception and has accumulated a significant deficit which raises substantial doubt about its ability to continue as a going concern. POSITRON CORP: Needs More Time to File 2015 Form 10-K ----------------------------------------------------- Positron Corporation filed with the U.S. Securities and Exchange Commission a Notification of Late Filing on Form 12b-25 with respect to its annual report on Form 10-K for the year ended Dec. 31, 2015. The Company said its financial statements could not be completed within the time provided without undue burden and expense. About Positron Corporation Headquartered in Fishers, Indiana, Positron Corporation is a molecular imaging company focused on nuclear cardiology. Positron reported a net loss of $2.58 million on $1.46 million of sales for the year ended Dec. 31, 2014, compared to a net loss of $7.1 million on $1.63 million of sales for the year ended Dec. 31, 2013. As of Sept. 30, 2015, the Company had $1.52 million in total assets, $3.10 million in total liabilities and a total stockholders' deficit of $1.58 million. Sassetti LLC, in Oak Park, Illinois, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2014, citing that the Company has a significant accumulated deficit which raises substantial doubt about the Company's ability to continue as a going concern. POSTROCK ENERGY: Case Summary & 20 Largest Unsecured Creditors -------------------------------------------------------------- Debtor affiliates filing separate Chapter 11 bankruptcy petitions: Debtor Case No. ------ -------- PostRock Energy Corporation 16-11230 210 Park Avenue, Suite 2750 Oklahoma City, OK 73102 PostRock Energy Services Corporation 16-11231 PostRock MidContinent Production LLC 16-11232 PostRock Eastern Production, LLC 16-11233 PostRock Holdco, LLC 16-11235 STP Newco, Inc. 16-11236 Type of Business: The Debtors operate as an independent oil and gas company engaged in the acquisition, exploration, development, production and gathering of crude oil and natural gas. Chapter 11 Petition Date: April 1, 2016 Court: United States Bankruptcy Court Western District of Oklahoma (Oklahoma City) Judge: Hon. Sarah A. Hall Debtors' Counsel: Mark A. Craige, Esq. CROWE & DUNLEVY, P.C. 500 Kennedy Building 321 S. Boston Tulsa, OK 74103 Tel: (918) 592-9878 Fax: (918) 599-6318 Email: mark.craige@crowedunlevy.com - and - John Paul K. Napier, Esq. Christopher M. Staine, Esq. CROWE & DUNLEVY, P.C. 324 North Robinson, Suite 100 Oklahoma City, Oklahoma 73102 Tel: 405.235.7700 Fax: 405.239.6651 Email: john.napier@crowedunlevy.com christopher.staine@crowedunlevy.com Estimated Assets: $10 million to $50 million Estimated Debts: $50 million to $100 million The petition was signed by Clark Edwards, president. List of PostRock Energy Corp.'s 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ BBVA Compass Money Loaned $4,349,586 PO Box 4444 Houston, TX 77210-4444 Mike Farquhar Email: mfarquhar@winstead.com Black Land Management, Inc. Litigation $400,000 Brian D Black PO Box 38 Bowden, WV 26254 Fax: Fax 681-205-8814 Email: tmiller@babstcalland.com Cadence Bank NA Money Loaned $4,349,586 2800 Post Oak Boulevard Suite 3800 Houston, TX 77056 Email: mfarquhar@winstead.com Cawley, Gillespie & Assoc, Inc. Trade Debt $33,864 CDW Direct, LLC Contract $33,483 Email: web.queries@computershare.com Chandler Oil, LLC Trade Debt $34,970 Citibank NA Money Loaned $10,014,162 3800 Citibank Center BLG B 3RD Floor Tampa, FL 33610 Email: mfarquhar@winstead.com Compressor Systems, Inc. Trade Debt $482,696 P.O. Box 841807 Dallas, TX 75284-1807 Kansas Department of Tax Liability $1,249,969 Revenue 915 SW Harrison Room 150 Topeka, KS 66612-2003 Kinder Morgan Operating LP Trade Debt $108,485 Nalco Corporation Trade Debt $134,810 Email: Remitadvice@Nalco.com Oklahoma Tower Realty Contract $983,478 204 N. Robinson Suite 700 Oklahoma City, OK 73102 Email: MDUNCAN@NEWSMARKLB.COM OneWest Bank, FSB Money Loaned $4,349,586 888 East Walnut Street Pasadena, CA 91101 Email: mfarquhar@winstead.com Pitney Bowes Global Contract $26,770 Email: bankruptcy@pb.com Radiant Electric Cooperative Trade Debt $94,166 Sunrise Oilfield Supply, Inc. Money Loaned $65,152 Texas Capital Bank, N.A. Money Loaned $7,080,720 2000 McKinney Avenue Suite 700 Dallas, TX 75201 Email: mfarquhar@winstead.com Topsource, LLC Trade Debt $99,921 Transtex Hunter LLC Contract $254,671 909 Lake Carolyn Parkway, Suite 600 Irving, TX 75039 Email: Hwalker@transtexhunter.com Transzap, Inc. Contract $43,730 POSTROCK ENERGY: Consents to Appointment of a Chapter 11 Trustee ---------------------------------------------------------------- At secured creditor Citibank, N.A.'s behest, PostRock Energy Corporation and its PostRock Energy Service Corporation, PostRock MidContinent Production LLC, PostRock Eastern Production, LLC, PostRock Holdco, LLC, and STP Newco, Inc., affiliates, presented an Agreed Motion to the U.S. Bankruptcy Court for the Western District of Oklahoma asking the Court to appoint a Chapter 11 Trustee in their chapter 11 cases filed last week. The Debtors are primarily engaged in the business of natural gas production in southeastern Kansas and northeastern Oklahoma. The Debtors also own and operate oil and gas equipment, including cementing, fracture treatment, and servicing rigs. Citibank requests the immediate appointment of a chapter 11 trustee for the Debtors' estates and to operate the Debtors' businesses. The Debtors agree to entry of an order appointing a Trustee in these Cases. Citibank is represented in this matter by: Steven W. Bugg, Esq. MCAFEE & TAFT A Professional Corporation 10th Floor, Two Leadership Square 211 N. Robinson Ave. Oklahoma City, Oklahoma 73105 Telephone: (405) 552-2216 E-mail: steven.bugg@mcafeetaft.com - and - R. Michael Farquhar, Esq. Matthew T. Ferris, Esq. Annmarie Chiarello, Esq. WINSTEAD PC 500 Winstead Building 2728 N. Harwood Street Dallas, Texas 75201 Telephone: (214) 745-5400 POSTROCK ENERGY: Files for Ch. 11 Protection to Facilitate Sale --------------------------------------------------------------- Citing the recent and dramatic decline in oil prices, PostRock Energy Corporation and five of its affiliates sought creditor protection in the U.S. Bankruptcy Court for the Western District of Oklahoma. The Chapter 11 filing came after the Debtors defaulted under the terms of their borrowing base facility, rendering it necessary for them to initiate these Chapter 11 cases. "Due to the sharp decline in oil prices and the sustained depression of gas prices caused by excess production and limited demand for these natural resources, the Debtors' revenues, profitability, and cash flows have been negatively affected," said Clark Edwards, interim president, chief executive officer, and a director of PostRock Energy. "Without sufficient liquidity and availability of capital, the Debtors' ability to acquire, explore, develop, produce, and gather crude oil and natural gas have also been severely limited by the industry and market trends and conditions," he continued. In February 2016, Citibank, N.A., as administrative and collateral agent under the Third Amended and Restated Credit Agreement dated Dec. 20, 2012, gave the Debtors a notice of default under the Credit Facility due to the borrowing base deficiency occurring after the borrowing base was reduced from $76 million to $39 million, and the Debtors' failure to make an interest payment when due. Subsequently, on March 14, 2016, the Agent had accelerated the balance of the Debtors' indebtedness under the Borrowing Base Facility (approximately $65 million as of the Petition Date), rendering the entire outstanding principal balance plus all accrued interest immediately due and payable. Mr. Edwards said the Debtors attempted to negotiate with the Agent and the Lenders for a restructuring transaction, but no agreement was reached. At the request of the Agent, the Debtors initiated these Chapter 11 cases and agreed to the immediate appointment of a Chapter 11 trustee "in order to preserve its going concern value and to facilitate a sale of substantially all of its assets under the management and direction of a Chapter 11 trustee." As early as February 2015, the Debtors, with the assistance of their advisors, engaged in a broad marketing process seeking to sell substantially all of their assets recognizing the current market and industry conditions, and the outstanding debt. Despite these efforts, the Debtors were unable to procure a sale that would result in the full satisfaction of its outstanding obligations under the Borrowing Base Facility, according to Court documents. Contemporaneously with the petitions, the Debtors seek certain "first day" relief in the first day motions in order to ensure a smooth transition into Chapter 11 and, ultimately, a smooth transition of management control to a Chapter 11 trustee. The Debtors seek permission to, among other things, use cash collateral, pay employee obligations and prohibit utility companies from discontinuing services. Headquartered in Oklahoma City, Oklahoma, PostRock Energy Corporation, PostRock Energy Services Corporation, PostRock MidContinent Production LLC, PostRock Eastern Production, LLC, PostRock Holdco, LLC, and STP Newco, Inc. are engaged in the acquisition, exploration, development, production and gathering of crude oil and natural gas. The Debtors' primary production activity is focused in the Cherokee Basin, a 15-county region in southeastern Kansas and northeastern Oklahoma. The Debtors have approximately 129 employees. PostRock Energy, et al., filed Chapter 11 bankruptcy petitions (Bankr. W.D. Okla Proposed Lead Case No. 16-11230) on April 1, 2016. Clark Edwards signed the petitions as president. The Debtors estimated assets in the range of $10 million to $50 million and debt of up to $100 million. Crowe & Dunlevy, P.C. serves as the Debtors' counsel. Judge Sarah A. Hall is assigned to the cases. PRA HEALTH: S&P Raises CCR to 'BB-', Outlook Stable --------------------------------------------------- Standard & Poor's Ratings Services raised its corporate credit rating on Raleigh, N.C.-based PRA Health Sciences Inc. to 'BB-' from 'B+'. The outlook is stable. At the same time, S&P affirmed the 'BB-' issue-level rating on the senior secured first-lien credit facility. S&P revised the recovery rating on this debt to '3' from '2', indicating its expectation for meaningful (50% to 70%; at the low end of the range) recovery in the event of payment default. At the same time, S&P raised the issue-level rating on the senior unsecured debt to 'B+' from 'B'. The recovery rating on this debt is '5', indicating S&P's expectations for modest recovery (10% to 30%; at the low end of the range) in the event of default. "We based the upgrade on PRA's continued solid operating performance, which has given us greater confidence that PRA will be able to maintain leverage below 5x over time despite the potential for an acquisition or dividend, given Kohlberg Kravis Roberts & Co.'s (KKR) controlling ownership position," said credit analyst Matthew Todd. "The company has successfully integrated several acquisitions since 2013 including RPS and CRI Lifetree, bringing margins to a level comparable to peers, and management believes revenue synergies remain. We believe the company will continue to pursue aggressive growth strategies given the potential for consolidation in the industry." S&P's stable outlook reflects its belief that PRA is well positioned to benefit from the positive trends in the CRO industry and to capture market share from its therapeutic expertise. Although KKR recently sold 5 million shares, S&P do not expect the majority owner to reduce its position below 40% in the next 12 months because of the recent depression in the prices of health care stocks. S&P's forecast places PRA below 5x leverage with room to absorb a significant cancellation or similar operational misstep. S&P's stable outlook incorporates the possibility of a large acquisition to grow the company's clinical trial capacity and scale. S&P would consider upgrading PRA if the company instills greater confidence that it will maintain leverage below 4x. In this scenario, the company needs to exceed our expectations for operating results by capturing market share and adding preferred partnerships with sponsors. In addition, S&P would view the company more positively if it publicly discloses a leverage target below 4x. S&P's upside scenario would likely be accelerated if KKR divests its controlling interest in PRA because S&P views this type of ownership as negative to the company's risk profile. S&P could lower the rating should the company adopt a more aggressive financial policy that would result in leverage exceeding 5x for more than 12 months. This could manifest in added debt either from a large acquisition or significant return of capital to shareholders. S&P believes the company's current rating could absorb an acquisition of $1 billion at a valuation of 13x EBITDA or $700 million of share repurchases. Alternatively, S&P could lower the rating should the company suffer an unlikely setback in operating performance in 2016 that would result in a double-digit miss in revenue growth and a 300-bp decline in EBITDA margin, resulting in forecasted leverage above 5x. This would likely stem from cancellations because of a major operational deficiency or the rationalization of outsourcing providers by multiple top-10 sponsors. PRECYSE ACQUISITION: S&P Lowers CCR to 'B-', Outlook Stable ----------------------------------------------------------- Standard & Poor's Ratings Services corrected the corporate credit rating on Alpharetta, Ga.-based Precyse Acquisition Corp. by lowering it to 'B-' from 'B'. When S&P issued the rating on March 30, 2016, it did not account for software development costs that the company provided to us that should have been expensed in EBITDA. When included as an adjustment, such costs increased total leverage to the mid- to high-8x range. None of the other views expressed in our March 30, 2016, release have changed regarding operating performance and free operating cash flows. The outlook remains stable. At the same time, S&P corrected the issue-level rating on the company's $510 million, first-lien credit facility by lowering it to 'B' from 'B+'. The facility comprises a $50 million revolving credit facility due 2021 (undrawn at close) and a $460 million, first-lien term loan due 2022. The '2' recovery rating is unchanged and indicates S&P's expectation of substantial (70% to 90%, lower half of the range) recovery for the first-lien debtholders in the event of default. S&P also corrected the issue-level rating on the company's $190 million, second-lien term loan due 2023 by lowering it to 'CCC' from 'CCC+'. The '6' recovery rating is unchanged and indicates S&P's expectation of negligible (0% to 10%) recovery for the second-lien debtholders. The rating on Precyse continues to reflect S&P's view of the company's business risk profile as weak, incorporating its small scale and narrow market focus in the health care information technology (IT) industry, offset by its large percentage of revenues under multiyear contracts. The highly leveraged financial risk profile reflects leverage in the mid- to high-8x area in fiscal 2016, after adjusting EBITDA by $28 million for software development costs reported as capital expenditures, and is expected to be in the mid-7x area in fiscal 2017. The stable outlook reflects S&P's view of the company's stable profitability, with a large portion of revenues under multiyear contracts coming from its revenue cycle management SaaS solution, and S&P's expectation that the company will continue to generate positive FOCF over the next 12 months. S&P would consider a higher rating over a longer term if healthcare providers, currently faced with extremely low margins, look to take advantage of the proposed value proposition of increased revenue yields and cost reduction that RCM technologies and services can provide, leading to consistent revenue growth and sustained leverage below 7x on a Standard & Poor's-adjusted basis. S&P could lower the rating if the company faces stronger competition in the higher margin, fragmented revenue cycle management (RCM) industry leading to lower renewal rates with its SaaS solutions, or if there is a shift in medical service outsourcing trends with hospitals bringing these services back in house, leading to negative cash flow or we assess liquidity at less than adequate. PRESSURE BIOSCENCES: Delays Filing of Form 10-K Report ------------------------------------------------------ Pressure Biosciences, Inc. said it was unable, without unreasonable effort or expense, to file its annual report on Form 10-K for the year ended Dec. 31, 2015, by the March 30, 2016, filing date applicable to smaller reporting companies due to a delay experienced by the Registrant in completing its financial statements and other disclosures in the Annual Report. As a result, the Company is still in the process of compiling required information to complete the Annual Report and its independent registered public accounting firm requires additional time to complete its review of the financial statements for the year ended Dec. 31, 2015, to be incorporated in the Annual Report. The Company anticipates that it will file the Annual Report no later than the fifteenth calendar day following the prescribed filing date, according to a regulatory filing with the Securities and Exchange Commission. About Pressure Biosciences Pressure BioSciences, Inc., headquartered in South Easton, Massachusetts, holds 14 United States and 10 foreign patents covering multiple applications of pressure cycling technology in the life sciences field. Pressure Biosciences reported a net loss applicable to common shareholders of $6.25 million on $1.37 million of revenue for the year ended Dec. 31, 2014, compared to a net loss applicable to common shareholders of $5.24 million on $1.5 million of total revenue for the year ended Dec. 31, 2013. As of Sept. 30, 2015, the Company had $2.21 million in total assets, $6.70 million in total liabilities and a total stockholders' deficit of $4.49 million. Marcum LLP, in Boston, Massachusetts, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2014, noting that the Company has had recurring net losses and continues to experience negative cash flows from operations. These conditions raise substantial doubt about the Company's ability to continue as a going concern, the auditors said. PRIMORSK SHIPPING: Drops Restructuring Plans to Pursue Sale ----------------------------------------------------------- Tom Corrigan, writing for Dow Jones' Daily Bankruptcy Review, reported that following a pre-emptive strike by senior lenders, Primorsk International Shipping Ltd. told a bankruptcy judge on April 1 that the oil shipper has dropped its restructuring plans in favor of a sale. According to the report, during a hearing in Manhattan, Primorsk attorney Brian Glueckstein told U.S. Bankruptcy Court Judge Martin Glenn that the reorganization plan has been withdrawn and that instead the company will soon ask for approval to send its assets to the auction block via a court-supervised sale process. Primorsk abruptly withdrew its restructuring plan after Nordea Bank Norge ASA, which leads a group of senior lenders owed about $263 million, sought to block the proposal, alleging it had been engineered to benefit the company's insiders and affiliates, the report related. Nordea, the Norwegian arm of the Swedish banking group, instead demanded that Primorsk abandon the plan and begin selling off its oil-shipping fleet to repay its debts, the report said. About Primorsk International Headquartered in Nicosia, Cyprus, Primorsk International Shipping Limited (Prisco) aka PISL operates a fleet of ice-class oil tankers in the Arctic. It was founded in 2004 and is owned by Apington Investments, a British Virgin Islands holding company, which is controlled by Russian native Alexander Kirilichev. Primorsk sought Chapter 11 bankruptcy protection (Bankr. S.D.N.Y. Case No. 16-10073) in New York, in the U.S., on Jan. 15, 2016. Affiliates Boussol Shipping Limited, Malthus Navigati on Limited, Jixandra Shipping Limited, Levaser Navigation Limited, Hermine Shipping Limited, Laperouse Shipping Limited (Bankr. S.D.N.Y. Case No. 16-10079), Prylotina Shipping Limited, Baikal Shipping Ltd, and Vostok Navigation Ltd. also filed separate Chapter 11 bankruptcy petitions. The bankruptcy petitions were signed by Holly Felder Etlin, chief restructuring officer. Judge Martin Glenn presides over the cases. Primorsk estimated assets and liabilities between $100 million and $500 million. Andrew G. Dietderich, Esq., at Sullivan & Cromwell LLP serves as the Debtors' bankruptcy counsel. AlixPartners, LLP, is the Debtors' financial and restructuring advisor. PURADYN FILTER: Incurs $1.44 Million Net Loss in 2015 ----------------------------------------------------- Puradyn Filter Technologies Incorporated filed with the Securities and Exchange Commission its annual report on Form 10-K disclosing a net loss of $1.44 million on $1.97 million of net sales for the year ended Dec. 31, 2015, compared to a net loss of $1.15 million on $3.11 million of net sales for the year ended Dec. 31, 2014. As of Dec. 31, 2015, Puradyn had $1.42 million in total assets, $13.94 million in total liabilities and a total stockholders' deficit of $12.51 million. Liggett & Webb, P.A., in Boynton Beach, Florida, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2015, citing that the Company has experienced net losses since inception and negative cash flows from operations and has relied on loans from related parties to fund its operations. These factors raise substantial doubt about the Company's ability to continue as a going concern. A full-text copy of the Form 10-K is available for free at: http://is.gd/fS16iu About Puradyn Filter Boynton Beach, Fla.-based Puradyn Filter Technologies Incorporated (OTC BB: PFTI) designs, manufactures and markets the puraDYN's Oil Filtration System. RCS CAPITAL: Creditors' Panel Hires FTI as Financial Advisor ------------------------------------------------------------ The Official Committee of Unsecured Creditors of RCS Capital Corporation and its debtor-affiliates seeks authorization from the U.S. Bankruptcy Court for the District of Delaware to retain FTI Consulting, Inc. as financial advisor to the Committee, nunc pro tunc to February 11, 2016. The Committee requires FTI Consulting to: (a) assist in the review and analysis of the Restructuring Support Agreement, the key economic terms contained therein and identification of potential improvements to the RSA for the benefit of unsecured creditors; (b) assist in the preparation of analyses required to assess any proposed Debtor-In-Possession financing or use of cash collateral; (c) assist with the review and assessment of the Debtors' applications to employ professionals, including legal, financial and investment banking advisors; (d) assist with the assessment and monitoring of the Debtors' short term cash flow, liquidity, and operating results; (e) assist with the review of the Debtors' proposed key employee retention and other employee benefit programs, including the broker loan programs and ordinary course bonus payments; (f) assist with the review of the Debtors' analysis of core business assets and the potential disposition or liquidation of non-core assets; (g) assist with the review of the Debtors' cost/benefit analysis with respect to the assumption or rejection of various executory contracts and leases; (h) assist with the review of the Debtors' identification of potential cost savings, including overhead and operating expense reductions and efficiency improvements; (i) assist in the review and monitoring of the asset sales, including, but not limited to, an assessment of the adequacy of the marketing process, completeness of any buyer lists, review and quantifications of any bids; (j) assist in the review of financial related disclosures required by the Court, including the Schedules of Assets and Liabilities, the Statement of Financial Affairs and Monthly Operating Reports. FTI will seek payment for compensation on a fixed monthly basis of $150,000 per month and a completion fee of $600,000, plus reimbursement of actual and necessary expenses incurred by FTI. Conor P. Tully, senior managing director with FTI, assured the Court that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtors and their estates. FTI can be reached at: Conor P. Tully FTI CONSULTING, INC. Three Times Square, 9th Floor New York, NY, 10036 Tel: (212) 247-1010 Fax: (212) 841-9350 E-mail: conor.tully@fticonsulting.com About RCS Capital New York-based RCS Capital Corporation -- http://www.rcscapital.com/-- is a full-service investment firm focused on the individual retail investor. With operating subsidiaries primarily focused on retail advice and until the completion of recently announced pending sales and divestiture of its wholesale distribution and investment banking, the company's business aims to capitalize, grow and maximize value for the investment programs its distributes and the independent advisors and clients it serves. RCS Capital Corporation and 11 of its affiliates filed Chapter 11 bankruptcy petitions (Bankr. D. Del. Case Nos. 16-10223 to 16-10234) on Jan. 31, 2016. The RCS Debtors' petitions were signed by David Orlofsky as chief restructuring officer. The Debtors disclosed total assets of $1.97 billion and total debts of $1.39 billion. RCS Capital Corp. disclosed total assets of $1,403,924,232 and total liabilities of $912,449,960. RCS Capital's affiliates led by Cetera Advisor Networks Insurance Services, LLC and Cetera Financial Group, Inc. filed separate Chapter 11 petitions (Bankr. D. Del. Case Nos. 16-10730 to 16-10748) on March 26, 2016. The cases are jointly administered under the Chapter 11 case of RCS Capital Corporation, Case No. 16-10223. The RCS and Cetera Debtors have engaged Dechert LLP as general counsel, Young Conaway Stargatt & Taylor, LLP as Delaware counsel, Zolfo Cooper Management, LLC as restructuring advisor, Lazard Freres & Co. LLC as investment banker and Prime Clerk LLC as administrative advisor and claims and noticing agent. Cetera Advisor Networks Insurance Services, LLC, estimated under $50,000 in assets and $500 million to $1 billion in debts. The Cetera Debtors' petitions were signed by Carol Flaton, chief restructuring officer. RCS CAPITAL: Creditors' Panel Hires Gibson Dunn as Counsel ---------------------------------------------------------- The Official Committee of Unsecured Creditors of RCS Capital Corporation and its debtor-affiliates seeks authorization from the U.S. Bankruptcy Court for the District of Delaware to retain Gibson, Dunn & Crutcher LLP as counsel to the committee, nunc pro tunc to February 11, 2016. The Committee requires Gibson Dunn to: (a) consult with the Committee via in-person and telephonic meetings concerning the Chapter 11 cases; (b) advise the Committee of its rights, powers, and duties during the Chapter 11 cases; (c) assist the Committee in investigating the acts, conduct, assets, liabilities and financial condition of the Debtors, the operation of the Debtors' businesses, and any matters related to the Chapter 11 cases; (d) review and analyze all complaints, motions, applications, orders and other pleadings filed with the Court, as appropriate, and advise the Committee with respect to its position thereon and the filing of any response thereto; (e) participate in the Chapter 11 cases to the extent such cases affect the rights and interests of the unsecured creditors of the Debtors, including but not limited to the sale of the Debtors' assets, the formulation of a Chapter 11 plan or plans, and confirmation of such plan or plans; (f) assist the Committee in preparing pleadings and applications, and pursuing or participating in adversary proceedings, contested matters and the administrative proceedings as may be necessary or appropriate in furtherance of the Committee's interest and objectives; (g) represent the Committee at all hearings and other proceedings before the Court and such other courts or tribunals, as appropriate; (h) assist and advise the Committee with respect to its communications with the general creditor body regarding significant matters in the Chapter 11 cases; and (i) perform such other legal services in connection with the Chapter 11 cases as may be necessary or as may be requested by the Committee in accordance with the Committee's powers and duties as set forth in the Bankruptcy Code. Gibson Dunn will be paid at these hourly rates: Partners $995-$1,165 Associates $585-$855 Paraprofessionals $310-$410 Gibson Dunn will also be reimbursed for reasonable out-of-pocket expenses incurred. David M. Feldman, partner of Gibson Dunn, assured the Court that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtors and their estates. Consistent with the U.S. Trustee Fee Guidelines, Gibson Dunn provided: -- Gibson Dunn has not agreed to a variation of its standard or customary billing arrangements for this engagement; -- none of Gibson Dunn's professionals included in this engagement have varied their rate based on the geographic location of these chapter 11 cases; -- Gibson Dunn did not represent the Committee in the 12 months prepetition; and -- although Gibson Dunn has not yet developed a prospective budget and staffing plan, the Committee has approved Gibson Dunn's proposed hourly billing rates. The Committee has also approved the Gibson Dunn attorneys staffed on this engagement; subject to modification depending upon further case developments. Gibson Dunn can be reached at: David M. Feldman, Esq. GIBSON, DUNN & CRUTCHER LLP 200 Park Avenue New York, NY 10166 Tel: (212) 351-4000 Fax: (212) 351-4035 E-mail: dfeldman@gibsondunn.com About RCS Capital New York-based RCS Capital Corporation -- http://www.rcscapital.com/-- is a full-service investment firm focused on the individual retail investor. With operating subsidiaries primarily focused on retail advice and until the completion of recently announced pending sales and divestiture of its wholesale distribution and investment banking, the company's business aims to capitalize, grow and maximize value for the investment programs its distributes and the independent advisors and clients it serves. RCS Capital Corporation and 11 of its affiliates filed Chapter 11 bankruptcy petitions (Bankr. D. Del. Case Nos. 16-10223 to 16-10234) on Jan. 31, 2016. The RCS Debtors' petitions were signed by David Orlofsky as chief restructuring officer. The Debtors disclosed total assets of $1.97 billion and total debts of $1.39 billion. RCS Capital Corp. disclosed total assets of $1,403,924,232 and total liabilities of $912,449,960. RCS Capital's affiliates led by Cetera Advisor Networks Insurance Services, LLC and Cetera Financial Group, Inc. filed separate Chapter 11 petitions (Bankr. D. Del. Case Nos. 16-10730 to 16-10748) on March 26, 2016. The cases are jointly administered under the Chapter 11 case of RCS Capital Corporation, Case No. 16-10223. The RCS and Cetera Debtors have engaged Dechert LLP as general counsel, Young Conaway Stargatt & Taylor, LLP as Delaware counsel, Zolfo Cooper Management, LLC as restructuring advisor, Lazard Freres & Co. LLC as investment banker and Prime Clerk LLC as administrative advisor and claims and noticing agent. Cetera Advisor Networks Insurance Services, LLC, estimated under $50,000 in assets and $500 million to $1 billion in debts. The Cetera Debtors' petitions were signed by Carol Flaton, chief restructuring officer. RCS CAPITAL: Creditors' Panel Hires Klehr Harrison as Co-counsel ---------------------------------------------------------------- The Official Committee of Unsecured Creditors of RCS Capital Corporation and its debtor-affiliates seeks authorization from the U.S. Bankruptcy Court for the District of Delaware to retain Klehr Harrison Harvey Branzburg LLP as Delaware co-counsel, nunc pro tunc to February 12, 2016. The Committee requires Klehr Harrison to: (a) provide legal advice regarding local rules, practices, precedent and procedures and providing substantive and strategic advice on how to accomplish the Committee's goals in connection with the prosecution of these cases, bearing in mind that the Court relies on co-counsel such as Klehr Harrison to be involved in all aspects of each bankruptcy proceeding; (b) appear in Court, depositions, and at any meeting with the U.S. Trustee and any meeting of creditors at any given time on behalf of the Committee as their co-counsel; (c) perform various services in connection with the administration of these cases, including without limitation, (i) preparing certificates of no objection, certifications of counsel, notices of fee applications and hearings, and hearing binders of documents and pleadings, (ii) monitoring the docket for filings and coordinating with Committee co-counsel on pending matters that need responses, (iii) preparing and maintaining critical dates memoranda to monitor pending applications, motions, hearing dates and other matters and the deadlines associated with the same, and (iv) handling inquiries and calls from creditors and counsel to interested parties regarding pending matters and the general status of these cases and coordinating with Committee co-counsel on any necessary responses; (d) perform all services for the Committee in which Gibson may have a conflict of interest; (e) perform all other services assigned by the Committee, in consultation with Gibson, to Klehr Harrison as co-counsel to the Committee; and (f) perform such other services as may be required to represent the Committee's interests in the Chapter 11 cases. Klehr Harrison will be paid at these hourly rates: Richard M. Beck, Partner $595 Sally E. Veghte, Associate $320 Melissa Hughes, Paralegal $190 Partners $360-$710 Associates $230-$425 Paralegals $150-$300 Klehr Harrison will also be reimbursed for reasonable out-of-pocket expenses incurred. Richard M. Beck, member of Klehr Harrison, 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. Klehr Harrison can be reached at: Richard M. Beck, Esq. KLEHR HARRISON HARVEY BRANZBURG LLP 919 Market Street, Suite 1000 Wilmington, DE 19801 Tel: (302) 426-1189 Fax: (302) 426-9193 E-mail: rbeck@klehr.com About RCS Capital New York-based RCS Capital Corporation -- http://www.rcscapital.com/-- is a full-service investment firm focused on the individual retail investor. With operating subsidiaries primarily focused on retail advice and until the completion of recently announced pending sales and divestiture of its wholesale distribution and investment banking, the company's business aims to capitalize, grow and maximize value for the investment programs its distributes and the independent advisors and clients it serves. RCS Capital Corporation and 11 of its affiliates filed Chapter 11 bankruptcy petitions (Bankr. D. Del. Case Nos. 16-10223 to 16-10234) on Jan. 31, 2016. The RCS Debtors' petitions were signed by David Orlofsky as chief restructuring officer. The Debtors disclosed total assets of $1.97 billion and total debts of $1.39 billion. RCS Capital Corp. disclosed total assets of $1,403,924,232 and total liabilities of $912,449,960. RCS Capital's affiliates led by Cetera Advisor Networks Insurance Services, LLC and Cetera Financial Group, Inc. filed separate Chapter 11 petitions (Bankr. D. Del. Case Nos. 16-10730 to 16-10748) on March 26, 2016. The cases are jointly administered under the Chapter 11 case of RCS Capital Corporation, Case No. 16-10223. The RCS and Cetera Debtors have engaged Dechert LLP as general counsel, Young Conaway Stargatt & Taylor, LLP as Delaware counsel, Zolfo Cooper Management, LLC as restructuring advisor, Lazard Freres & Co. LLC as investment banker and Prime Clerk LLC as administrative advisor and claims and noticing agent. Cetera Advisor Networks Insurance Services, LLC, estimated under $50,000 in assets and $500 million to $1 billion in debts. The Cetera Debtors' petitions were signed by Carol Flaton, chief restructuring officer. RCS CAPITAL: Prime Clerk Approved as Claims and Noticing Agent -------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware authorized RCS Capital Corporation, et al., to employ Prime Clerk as claims and noticing agent nunc pro tunc to the Petition Date. Prime Clerk is expected to perform noticing services and to receive, maintain record and otherwise administer the proofs of claim filed in the Chapter 11 cases. Prime Clerk will serve as custodian of Court record and will be designated as the authorized repository for all proofs of claim filed in the Chapter 11 cases and is authorized and directed to maintain an official claims register for the Debtors and to provide the Clerk with a certified duplicate thereof upon the request of the Clerk. As reported by the Troubled Company Reporter on Feb. 3, 2016, by appointing Prime Clerk as the Claims Agent, the Debtors expect that the distribution of notices and the processing of claims will be expedited, and the Office of the Clerk of the Bankruptcy Court will be relieved of the administrative burden of processing claims. Prime Clerk's claims and noticing rates are: Title Hourly Rate ----- ----------- Analyst $30-$45 Technology Consultant $65-$75 Consultant $80-$130 Senior Consultant $135-$150 Director $170-$190 Solicitation Consultant $190 Director of Solicitation $210 The Debtors requested that the fees and expenses incurred by Prime Clerk in the performance of the services be treated as administrative expenses of their estates and be paid in the ordinary course of business without further application to, or order of, the Court. Prior to the Petition Date, the Debtors provided Prime Clerk a retainer of $50,000. Prime Clerk seeks to hold the Retainer during the Debtors' cases as security for the payment of fees and expenses incurred under the Engagement Agreement. The Debtors have agreed to indemnify, defend and hold harmless Prime Clerk and its members, officers, employees, representatives and agents under certain circumstances specified in the Engagement Agreement, except in circumstances resulting solely from Prime Clerk's gross negligence or willful misconduct or as otherwise provided in the Engagement Agreement or Retention Order. Prime Clerk represents 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 engaged. About RCS Capital New York-based RCS Capital Corporation -- http://www.rcscapital.com/-- is a full-service investment firm focused on the individual retail investor. With operating subsidiaries primarily focused on retail advice and until the completion of recently announced pending sales and divestiture of its wholesale distribution and investment banking, the company's business aims to capitalize, grow and maximize value for the investment programs its distributes and the independent advisors and clients it serves. RCS Capital Corporation and 11 of its affiliates filed Chapter 11 bankruptcy petitions (Bankr. D. Del. Case Nos. 16-10223 to 16-10234) on Jan. 31, 2016. The petitions were signed by David Orlofsky as chief restructuring officer. The Debtors disclosed total assets of $1.97 billion and total debts of $1.39 billion. RCS Capital Corp. disclosed total assets of $1,403,924,232 and total liabilities of $912,449,960. The Debtors have engaged Dechert LLP as general counsel, Young Conaway Stargatt & Taylor, LLP as Delaware counsel, Zolfo Cooper Management, LLC as restructuring advisor, Lazard Freres & Co. LLC as investment banker and Prime Clerk LLC as administrative advisor and claims and noticing agent. REX ENERGY: Moody's Lowers CFR to Ca, Outlook Remains Negative -------------------------------------------------------------- Moody's Investors Service downgraded REX Energy Corporation's (REXX) Corporate Family Rating to Ca from Caa3, its Probability of Default Rating to Ca-PD/LD from Caa3-PD, its senior unsecured notes to C from Ca. Moody's affirmed the SGL-4 Speculative Grade Liquidity (SGL) Rating and the rating outlook remains negative. "The downgrade reflects the poor overall recovery prospects as indicated by REXX's PV-10 value. The negative outlook is driven by the weak commodity price environment, specifically in natural gas pricing, which could further erode REXX's recovery value," commented Sreedhar Kona, Moody's Senior Analyst. RATINGS RATIONALE On March 31, 2016, REXX announced the closing of the Offer to Exchange Outstanding 8.875% Senior Notes due 2020 and 6.250% Senior Notes due 2022 for New 1.00%/8.00% Senior Secured Second Lien Notes due 2020 and Shares of Common Stock. Moody's considers REXX's exchange of unsecured notes as a distressed exchange, which Moody's considers a default. As noted above, Moody's appended the Ca-PD PDR with a "/LD" designation indicating limited default. The "/LD" designation will be removed three business days hereafter. Although, the unsecured notes were exchanged at par with the second lien notes, the bondholders that participated in the exchange will bear some loss of the interest payments. Additionally, Moody's deems the exchange event as an avoidance of default. In exchange for $323,980,000 in aggregate principal amount of the 2020 Notes, representing approximately 92.57% of the outstanding aggregate principal amount of the 2020 Notes, and $309,135,000 in aggregate principal amount of the 2022 Notes, representing approximately 95.12% of the outstanding aggregate principal amount of the 2022 Notes, the Company (i) issued $633,657,047 aggregate principal amount of its New Notes and (ii) issued 8,412,615 Shares. The New Notes will bear interest at a rate of 1.0% per annum for the first three semi-annual interest payments after issuance and 8.0% per annum payable in cash thereafter. Downgrades: Issuer: Rex Energy Corporation Corporate Family Rating, Downgraded to Ca from Caa3 Probability of Default Rating, Downgraded to Ca-PD from Caa3- PD/LD Senior Unsecured Regular Bond/Debentures, Downgraded to C (LGD 6) from Ca (LGD 4) Affirmations: Speculative Grade Liquidity Rating, Affirmed SGL-4 Outlook Actions: Outlook, Remains Negative The downgrade of the CFR to Ca from Caa3 reflects the continued deterioration of the commodity price environment and weaker asset value, resulting in lower potential recovery. The recent reduction of the borrowing base to $190 million and the PV-10 value of approximately $300 million are a reflection of this deterioration. Although the debt exchange provides a temporary reprieve from the interest burden, liquidity will continue to be stressed in 2017 and the risk of default remains elevated. The company's senior unsecured notes ($26 million of 8.875% notes due 2020 and $16 million of 6.25% notes due 2022) were downgraded to C. This is one notch below the CFR, reflecting the notes' contractual subordination to the (unrated) $190 million secured borrowing base revolving credit facility due 2019 and the new $634 million second lien notes due 2020. The revolver and the second lien notes rank ahead of the senior unsecured notes. The SGL-4 rating reflects Moody's expectation that REXX's liquidity will remain weak through the next 12-18 months. Although REXX's 2016 EBITDA might be able to cover the reduced interest expense resulting from the debt exchange and expected capital budget of $15 - $25 million, the 2017 EBITDA prospects are very weak leading to an increased reliance on external sources to fund interest expense. As of Dec. 31 2015, REXX had $1.1 million of cash on its balance sheet. The $190 million borrowing base revolving credit facility had $37 million availability ($111.5 million of outstanding borrowings and $41 million of undrawn letters of credit as of Dec. 31 2015). The availability under the revolver could be impacted further if the borrowing base is redetermined to a lower level in fall 2016. There are no debt maturities until 2019, when the revolver commitments expire. Moody's sees a significant risk to the company's ability to remain in compliance with its financial maintenance covenants (maximum net senior secured debt/EBITDAX of 2.75x and current ratio of 1.0x) in the first half of 2017. Substantially all of the company's assets are pledged as collateral to the revolving credit facility and any net proceeds from asset sales have to be used to reduce outstanding revolver balances leaving limited alternative liquidity. The negative outlook reflects REXX's continued liquidity stress and the risk of default. A downgrade could occur if the company is likely to file for protection or undertakes a subsequent debt restructuring. A rating upgrade is not expected through 2016 due to the company's weak cash flow outlook. An upgrade will be considered if the company improves RCF/Debt to above 10% and sustains EBITDA/interest at above 1.5x. Liquidity must improve to at least adequate levels for ratings to be considered for an upgrade. Headquartered in State College, PA, REXX is a publicly traded independent, exploration and production company with operations concentrated in the Appalachian and the Illinois Basins. The principal methodology used in these ratings was Global Independent Exploration and Production Industry published in December 2011. REXFORD PROPERTIES: Hires Palmer to Appraise Island Waterpark ------------------------------------------------------------- Rexford Properties LLC seeks authorization from the Hon. Martin R. Barash of the U.S. Bankruptcy Court for the Central District of California to employ James G. Palmer Appraisals Inc. as appraiser, effective February 19, 2016. The Debtor owns the Island Waterpark in Fresno, California. The Waterpark is a family friendly water-themed amusement park featuring a variety of rides and attractions for both children and adults. The Waterpark is located on a plot of land off Highway 99 and Shaw Avenue in Fresno. The Debtor has an immediate need to employ Palmer as its appraiser to, among other things, provide valuation analysis of the Debtor's Property and to provide expert testimony on valuation matters, if required, in connection with plan confirmation. Palmer has submitted a proposal to the Debtor to appraise the Property in a timely manner for a flat fee of $6,500, with compensation for services and reimbursement of expenses to be paid from the Debtor's estate In addition to the Appraisal Fee, any time spent on work done subsequent to the appraisal, including for expert testimony, will be billed at Mr. Palmer's rate of $385 per hour. Gregg J. Palmer, principal of Palmer, 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. Palmer can be reached at: Gregg J. Palmer JAMES G. PALMER APPRAISALS INC. 1285 W. Shaw Ave, Suite 108 Fresno, CA 93711 Tel: (559) 226-5020 Fax: (559) 226-5063 About Rexford Properties Rexford Properties LLC is a California limited liability company that owns the Island Waterpark in Fresno, California. The Waterpark is a family friendly water-themed amusement park featuring a variety of rides and attractions including a wave park, a lazy river, a three story water slide, and other attractions for both children and adults. The Waterpark is located on a plot of land off Highway 99 and Shaw Avenue in Fresno. Rexford owns the underlying land and the improvements and other assets of the Waterpark, and utilizes the assistance of third party manager / independent contractor to operate the Waterpark. Rexford Properties LLC filed for Chapter 11 protection (Bank. C.D. Cal. Case No. 15-12116) on June 16, 2015. The petition was signed by Lisa Ehrlich, managing member. Bankruptcy Judge Martin R. Barash presides over the case. The Debtor disclosed total assets of $1,107,620 plus an unknown amount and total liabilities of $12,883,441. Prepetition, the Debtor obtained a series of loans from companies related to the Ehrlich family to construct the Waterpark, but all were unsecured. The only secured loan that the Debtor has is the postpetition debtor-in-possession loan approved by the Court in an order entered Dec. 31, 2015. The lender under the DIP Loan is The 1979 Ehrlich Investment Trust, and the total maximum principal balance of the DIP Loan is $2 million. Michael M. Lauter, Esq., at Sheppard Mullin Richter & Hampton LLP, represents the Debtor in its restructuring effort. RICEBRAN TECHNOLOGIES: Reports $10.6 Million Net Loss for 2015 -------------------------------------------------------------- RiceBran Technologies filed with the Securities and Exchange Commission its annual report on Form 10-K disclosing a net loss of $10.6 million on $39.9 million of revenues for the year ended Dec. 31, 2015, compared to a net loss of $26.6 million on $40.10 million of revenues for the year ended Dec. 31, 2014. As of Dec. 31, 2015, RiceBran had $33.63 million in total assets, $26.29 million in total liabilities, $69,000 in temporary equity and $7.26 million in total equity attributable to the Company's shareholders. The Company's auditors Marcum LLP, in New York, NY, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2015, citing that the Company has suffered recurring losses from operations resulting in an accumulated deficit of $251 million at December 31, 2015. This factor among other things, raises substantial doubt about its ability to continue as a going concern. A full-text copy of the Form 10-K is available for free at: http://is.gd/rLyoik About RiceBran Scottsdale, Ariz.-based RiceBran Technologies, a California corporation, is a human food ingredient and animal nutrition company focused on the procurement, bio-refining and marketing of numerous products derived from rice bran. RIVERSIDE PLAZA: Seeks April 12 Extension of Schedules ------------------------------------------------------ Riverside Plaza Developers LLC asks the U.S. Bankruptcy Court for the Northern District of Illinois, Eastern Division, to extend its time to file its schedules and statement of financial affairs until April 12, 2016. The Debtor contends that this extension would allow the U.S. Trustee seven days to review the schedules and statement prior to the meeting of creditors on April 19, 2016. The Debtor tells the Court that it is in the process of compiling and reviewing the necessary information to complete the Schedules and Statements. The Debtor hopes to be in a position to file the Schedules and Statements by the current deadline of March 28, 2016. The Debtor relates that it seeks a modest extension until April 12, 2016, out of an abundance of caution. Riverside Plaza Developers LLC is represented by: Neal L. Wolf, Esq. John A. Benson, Jr., Esq. TETZLAFF LAW OFFICES, LLC 227 W. Monroe Street, Suite 3650 Chicago, IL 60606 Telephone: (312)574-1000 Facsimile: (312)574-1001 E-mail: nwolf@tetzlafflegal.com jbenson@tetzlafflegal.com RIVERSIDE PLAZA: Seeks to Use UCF Cash Collateral ------------------------------------------------- Riverside Plaza Developers LLC asks the U.S. Bankruptcy Court for the Northern District of Illinois, Eastern Division, for authorization to use cash collateral. The Debtor owns and operates mixed-use property that derives revenue from rent paid by 43 residential tenants, amounting to approximately $80,000 per month. The Debtor tells the Court that it needs the use of its cash to continue to care for and maintain the property at a high level, to keep its existing tenants, to grow its rent rolls, to build out its 9,200 square feet of commercial space for potential new commercial tenants, and to pay professional fees associated with its reorganization. It further tells the Court that all such uses will redound to the benefit of creditors -- secured and unsecured alike, of tenants, and of the Village of Algonquin. UCF I Trust 1 ("UCF") appears to have a security interest in its cash as well as a mortgage on the property. The Debtor further relates that UCF is owed approximately $13 million. The Debtor proposes to use cash collateral on an interim basis for a period of 30 days pursuant to the proposed Interim Cash Collateral Order submitted and the proposed budget. The Debtor further proposes that it be permitted to exceed any individual line item as long as the total expended during the period does not exceed 110% of the total Budget. The Debtor alleges that it only seeks the use of Cash Collateral as is necessary to avoid immediate and irreparable harm to the estate pending a final hearing. As adequate protection for the Lender's interest in the Cash Collateral, the Debtor proposes that the Lender be granted replacement liens in the Debtor's postpetition assets to the same extent, validity and priority as the Lender's prepetition liens. The Debtor contends that if it is denied the ability to immediately use the Cash Collateral, there will be a direct and immediate material and adverse impact on the continuing operations of its business and the value of its assets. The Debtor further contends that its inability to pay its ordinary business expenses will require it to discontinue normal operations, which will likely result in irreparable harm to the Debtor, its tenants and its creditors. The Debtor's Motion is supported by the Declaration of John Breugelmans, sole member and sole manager of RPD Project Management, LLC. Riverside Plaza Developers LLC is represented by: Neal L. Wolf, Esq. John A. Benson, Jr., Esq. TETZLAFF LAW OFFICES, LLC 227 W. Monroe Street, Suite 3650 Chicago, IL 60606 Telephone: (312)574-1000 Facsimile: (312)574-1001 E-mail: nwolf@tetzlafflegal.com jbenson@tetzlafflegal.com SANUWAVE HEALTH: Incurs $4.81 Million Net Loss in 2015 ------------------------------------------------------ SANUWAVE Health, Inc., filed with the Securities and Exchange Commission its annual report on Form 10-K disclosing a net loss of $4.81 million on $965,501 of revenues for the year ended Dec. 31, 2015, compared to a net loss of $5.97 million on $847,367 of revenues for the year ended Dec. 31, 2014. As of Dec. 31, 2015, the Company had $958,361 in total assets, $6.83 million in total liabilities and a total stockholders' deficit of $5.87 million. BDO USA, LLP, in Atlanta, Georgia, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2015, citing that the Company has suffered recurring losses from operations and is dependent upon future issuances of equity or other financing to fund ongoing operations, both of which raise substantial doubt about its ability to continue as a going concern. A full-text copy of the Form 10-K is available for free at: http://is.gd/J9eikO About SANUWAVE Health Alpharetta, Ga.-based SANUWAVE Health, Inc., is an emerging global regenerative medicine company focused on the development and commercialization of noninvasive, biological response activating devices for the repair and regeneration of tissue, musculoskeletal and vascular structures. SARATOGA RESOURCES: Balks at ERG Bid to Convert Case ---------------------------------------------------- Saratoga Resources filed with the U.S. Bankruptcy Court an objection to Energy Reserves Group II's (ERG II) motion to convert the Chapter 11 reorganization cases to liquidation under Chapter 7, BankruptcyData reported. According to the report, Saratoga Resources' objection explains, "It is respectfully submitted that ERG II has failed to demonstrate 'cause' for conversion in their largely conclusory filing, and that these Chapter 11 cases should not be converted to Chapter 7 cases because such conversion would be detrimental to the interests of the Debtors' estates as a whole. There are numerous difficulties created as a result of a conversion, including the debtors' likely inability to pay -- at least on a timely basis -- the postpetition trade debt (to vendors who continue to provide Saratoga with operational services and may have statutory liens and privileges on the Subject Assets) incurred in the ordinary operations of the Debtors' business and the payroll due to employees who continue to preserve and maintain the assets, the lack of an orderly transition of the operations to a new operator, and the potential acceleration of environmental liabilities. The Debtors and the Committee understand that the intention of ERG II (as the purchaser of the First Lien Notes and the Second Lien Notes) is to acquire title to the Subject Assets, which constitute substantially all of the Debtors' producing assets, and, under the circumstances, do not object to this goal under appropriate circumstances. However, ERG II's doing so through a Section 363 sale in the chapter 11 cases can be done quickly and without the risk of uncontrolled and inevitable collateral damage to the Debtors' estates and creditors resulting from a conversion. Selling the Subject Assets to ERG II (which is the result ERG II wants to achieve anyway) in a prompt Section 363 sale will allow the Debtors and ERG II to avoid the problems which are inherent in chapter 7 liquidation." About Saratoga Resources Saratoga Resources -- http://www.saratogaresources.com/-- is an independent exploration and production company with offices in Houston, Texas and Covington, Louisiana. Principal holdings cover approximately 51,500 gross/net acres, mostly held by production, located in the transitional coastline and protected in-bay environment on parish and state leases of south Louisiana and in the shallow Gulf of Mexico Shelf. Most of the company's large drilling inventory has multiple pay objectives that range from as shallow as 1,000 feet to the ultra-deep prospects below 20,000 feet in water depths ranging from less than 10 feet to a maximum of approximately 80 feet. Saratoga Resources, Inc., Harvest Oil & Gas, LLC, and their affiliated debtors sought protection under Chapter 11 of the Bankruptcy Code on June 18, 2015. The lead case is In re Harvest Oil & Gas, LLC, Case No. 15-50748 (Bankr. W.D. La.). The Debtors are represented by William H. Patrick, III, Esq., at Heller, Draper, Patrick, Horn & Dabney, LLC, in New Orleans, Louisiana. SCRUB ISLAND: Reorganized SIDG Can Borrow $6MM from J. Appleton --------------------------------------------------------------- The Hon. Michael G. Williamson of the U.S. Bankruptcy Court for the Middle District of Florida authorized Scrub Island Development Group Limited to borrow funds under the subordinated line of credit facility. The line of credit will be made available to Reorganized SIDG by Jeffrey Appleton or an entity to be formed by him, and may, without limiting any other use of those funds, use the borrowed monies to fund the purchase of the LV14 Villa Shares and the settlement with Enjoy Life Corp., which settlement will be approved by separate order. Reorganized SIDG has sought and obtained approval from the Court of a compromise of controversy or settlement agreement with Enjoy Life. Reorganized SIDG told the Court that it has closed on its settlement with FirstBank Puerto Rico, has closed on the five partially constructed Longview neighborhood villas or lots described in the Modified Plan, has drawn $4.7 million from RCB Equities No.1, LLC, and is current on plan payments to creditors. Richard Gaudet, as Plan Administrator, has made his initial report for the quarter ended Sept. 30, 2015. Reorganized SIDG has contracts or letters of intent to sell two Little Scrub Island lots for $450,000 each, or a total of $900,000. The Enjoy Life Compromise Motion provides, among other things, that: 1. Reorganized SIDG will acquire the equity interests in Enjoy Life Corp., the owner of the LV14 Villa, in exchange for $2,700,000 and Enjoy Life Corp. will waive its $120,000 claim against the estate. 2. As this Court is aware, the Modified Plan was funded principally by an infusion of $4,500,000 by the Reorganized SIDG shareholders and by a loan from RCB. The motion sougt formal approval of an additional subordinated line of credit of $6,000,000 that will fund the Enjoy Life Corp. settlement and will provide Reorganized SIDG with a source of funds for other activities, including further capital improvements, payments to FirstBank and RCB, and payments to others creditors under the Modified Plan. 3. The new line of credit will be subordinate to the claims of FirstBank and RCB. The material terms of the Term Sheet are summarized as: a. Line of Credit Amount: $6,000,000 principal amount. b. Use of Funds: Funds advanced under the line of credit will be used by Reorganized SIDG to acquire all of the LV14 Villa Shares, including to pay off the first charge of FirstBank on the LV14 Villa, and may otherwise be used by Reorganized SIDG in its discretion as agreed to between Appleton and Reorganized SIDG. Such funds may be used to make payments to FirstBank under the FirstBank Loan Agreement and RCB under the RCB Loan Agreement. c. Subordination: Repayment of amounts advanced under the line of credit will be subordinate to the loan obligations of Reorganized SIDG to FirstBank and RCB. Appleton will have no mortgage, charge or lien on any existing collateral of FirstBank or RCB. Reorganized SIDG will repay the line of credit upon the sale of the LV14 Villa to a third party, including any profit derived from such sale. Apart from the proceeds from the sale of the LV14 Villa or new capital contributions, Reorganized SIDG will repay the line of credit from any unrestricted share of the proceeds from Longview Villa property sales to which Reorganized SIDG is entitled and that it is not required to be transferred to RCB under the RCB Loan Agreement. Reorganized SIDG may use other sources to repay Appleton if, and only if, such payments do not constitute a default under the FirstBank Loan Agreement or the RCB Loan Agreement. d. Interest Rate: 10% per annum, charged on any amounts drawn. Interest will accrue until repaid as permitted herein. e. Repayment: There will be a mandatory repayment of principal and then outstanding interest upon the sale of the LV14 Villa in the amount of100% of the net sales proceeds (after closing costs and expenses) from such sale. The balance of the principal and interest may be paid from time to time as provided above. Any outstanding balance will be paid on the maturity date, together with accrued interest. f. Maturity Date: July 31, 2023. g. Collateral: Appleton will receive a first position charge on the LV14 Villa upon its acquisition by Reorganized SIDG. It is the intention of Reorganized SIDG to sell the LV14 Villa as part of its marketing plan. h. Equity: At closing, Appleton will be entitled to shares in Reorganized SIDG equal to 7.5% of the total outstanding equity interests in Reorganized SIDG, and Reorganized SIDG will issue such shares to Appleton subject to him applying for and receiving a Non-Belongers Land Holding License. i. Remedies: If Reorganized SIDG has not closed on a third-party sale of the LV14 Villa by June 30, 2017, Appleton may request that Reorganized SIDG transfer fee title to the LV14 Villa to him or his designee, and Reorganized SIDG will do so. Reorganized SIDG will at the time of transfer of the LV14 Villa to Appleton receive a credit against the amount then outstanding under the line of credit for the fair market value of the LV14 Villa as established by an appraiser mutually satisfactory to Reorganized SIDG and Appleton. Other than the right to request a deed to the LV14 Villa, Appleton will take no action to enforce his claims on the line of credit against Reorganized SIDG until FirstBank and RCB have been paid in full. j. Closing Date: 10 days from the entry of an order by the Court approving the line of credit, provided, however, that Reorganized SIDG and Appleton may, in their discretion, close prior to such approval upon receipt of written approval of this Term Sheet from FirstBank and RCB. Reorganized SIDG and Appleton may jointly waive the conditions for closing. Reorganized SIDG is represented by: Harley E. Riedel, Esq. Charles A. Postler, Esq. Daniel R. Fogarty, Esq. STICHTER, RIEDEL, BLAIN & POSTLER, P.A. 110 East Madison Street, Suite 200 Tampa, FL 33602 Tel: (813) 229-0144 Fax: (813) 229-1811 E-mails: hriedel@srbp.com cpostler@srbp.com dfogarty@srbp.com About Scrub Island Scrub Island Development Group Ltd., the owner of a British Virgin Islands luxury resort, and its affiliate, Scrub Island Construction Limited, sought bankruptcy protection (Bankr. M.D. Fla. Case Nos. 13-15285 and 13-15286) on Nov. 19, 2013, to end a receivership Scrub Island claims was secretly put in place by its lender. The bankruptcy case is assigned to Judge Michael G. Williamson. The 230-acre resort operates as a Marriott Autograph Collection property. It has 52 rooms and suites, a spa and a 55-slip marina. Scrub Island Development scheduled $126 million in assets and $131 million in liabilities. The Debtors are represented by Charles A. Postler, Esq., and Harley E. Riedel, Esq., at Stichter, Riedel, Blain & Prosser, in Tampa, Florida. FirstBank Puerto Rico, the prepetition secured lender, is represented by W. Keith Fendrick, Esq., at Holland & Knight LLP, in Tampa, Florida. The Debtors are represented by Charles A. Postler, Esq., and Harley E. Riedel, Esq., at Stichter, Riedel, Blain & Prosser, in Tampa, Florida. FirstBank Puerto Rico, the Debtor's prepetition secured lender, is represented by W. Keith Fendrick, Esq., at Holland & Knight LLP, in Tampa, Florida. The Official Committee of Unsecured Creditors appointed in Scrub Island's cases has retained Robert B. Glenn, Esq., Edwin G. Rice, Esq., and Victoria D. Critchlow, Esq., at Glenn Rasmussen, P.A., as general counsel. * * * The Troubled Company Reporter, on Jan. 16, 2015, reported that News, reported that Scrub Island Resort, Spa & Marina in the British Virgin Islands prevailed over lender FirstBank Puerto Rico and persuaded a bankruptcy judge in Tampa, Florida, to approve its Chapter 11 reorganization plan. According to the TCR, citing Bloomberg News, after an eight-day trial, the judge rejected the bank's objections to the plan and ruled that he can trim the bank's treatment under the plan if Scrub Island wins the lender-liability suit. Implementation of the plan will enable Scrub Island to improve the property with an $18 million loan, the Bloomberg report said, citing a statement from the resort. SDI SOLUTIONS: 341 Meeting of Creditors Set for April 22 -------------------------------------------------------- The meeting of creditors of SDI Solutions LLC and SDI Opco Holdings LLC is set to be held on April 22, 2016, at 2:00 p.m., according to a filing with the U.S. Bankruptcy Court in Delaware. The meeting will be held at J. Caleb Boggs Federal Building, Room 2112, 844 King Street, Wilmington, Delaware. The court overseeing the bankruptcy case of a company schedules the meeting of creditors usually about 30 days after the bankruptcy petition is filed. The meeting is called the "341 meeting" after the section of the Bankruptcy Code that requires it. A representative of the company is required to appear at the meeting and answer questions under oath. The meeting is presided over by the U.S. trustee, the Justice Department's bankruptcy watchdog. About SDI Solutions SDI Solutions LLC and SDI Opco Holdings, LLC sought protection under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware (Delaware) (Bankr. D. Del., Case Nos. 16-10627 and 16-10628) on March 13, 2016. The petition was signed by David Sullivan, chief executive officer. The cases are jointly administered under Case No. 16-10627. The Debtors are represented by Stuart M. Brown, Esq., Kaitlin MacKenzie Edelman, Esq., and Thomas R. Califano, Esq., at DLA Piper LLP (US). The Debtors tapped Gulf Atlantic Capital Corp. as their financial advisor and Donlin, Recano & Company Inc. as their claims and noticing agent. The Debtors estimated both assets and liabilities in the range of $10 million to $50 million. SEA SHELL COLLECTIONS: Case Summary & 8 Unsecured Creditors ----------------------------------------------------------- Debtor: Sea Shell Collections LLC 380 Lurton Street Pensacola, FL 32505 Case No.: 16-30304 Type of Business: Owns and operates a shopping center Chapter 11 Petition Date: March 31, 2016 Court: United States Bankruptcy Court Northern District of Florida (Pensacola) Debtor's Counsel: Richard Michael Colbert, Esq. RICHARD M COLBERT PLLC 2717 Gulf Breeze Parkway Gulf Breeze, FL 32563 Tel: 850-934-1003 Fax: 850-924-0503 E-mail: richardmcolbert@gmail.com Total Assets: $21.3 million Total Liabilities: $37.03 million The petition was signed by James C. Moulton, president - Mouton Propertis, Inc., manager. List of Debtor's 8 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Allen D. Davis and Shirley Junior Mortgage $924,441 D. Davis 214 Dolphin St. Gulf Breeze, FL 32561-4232 Armstrong Electric Co Inc. Trade Debt $15,963 Caldwell Associates Professional $13,907 Architect, Inc. Fees Clark Partington Professional $42,110 Hart Larry Bond & Stack Services Helmsing Leach Hearlong Newman Professional $12,505 & Rouse Fees L. Pugh & Assoc Inc. Trade Debt $9,137 MMI Mechanical Contractors Inc. Trade Debt $7,225 Stabilis Master Fund III, LLC Judgment $14,013,708 c/o John H. Adams, Esq. 30 S Spring St. Pensacola, FL 32502-5612 SOUTHCROSS ENERGY: S&P Lowers CCR to 'CCC+', Outlook Negative ------------------------------------------------------------- Standard & Poor's Ratings Services said it lowered its corporate credit and senior secured rating on Southcross Energy Partners L.P. to 'CCC+' from 'B-'. The outlook is negative. The '3' recovery rating on the company's senior secured term loan and revolving credit facility is unchanged. The '3' recovery rating indicates expectations for meaningful (50% to 70%; upper half of the range) recovery if a payment default occurs. The downgrade on Southcross reflects S&P's view it is dependent upon favorable economic and market conditions to meet its financial obligations. Furthermore, with the partnership's covenants including leverage step-downs later this year, S&P expects the partnership to be in violation of their financial covenants through 2016. As such, the partnership will rely on parent company, Southcross Holdings Borrower L.P. (Holdings) for equity cures related to those covenant violations. Incorporated in Holdings prepackaged plan of reorganization is an agreement to commit up to $50 million to fund any potential equity cure requirements at Southcross through fiscal 2016. It also includes the repayment of all past due obligations due to Southcross and current payment of such obligations going forward which S&P believes will improve the liquidity pressures the partnership is facing. In S&P's view, if commodity prices remain at current levels or weaken further, the partnership could have covenant pressures in 2017 as weak commodity prices could result in lower volumes and cash flow. The negative outlook reflects S&P's view that if commodity prices do not improve, the partnership's liquidity could remain under pressure in 2017. SPANISH BROADCASTING: Delays Filing of 2015 Annual Report --------------------------------------------------------- Spanish Broadcasting System, Inc. filed with the U.S. Securities and Exchange Commission a Notification of Late Filing on Form 12b-25 with respect to its annual report on Form 10-K for the year ended Dec. 31, 2015. The Company said it was unable to file its Form 10-K prior to the filing deadline without unreasonable effort or expense due to unanticipated delays in resolving the accounting treatment of certain deferred tax assets. The Company expects to file the Form 10-K no later than the fifteenth calendar day following the prescribed due date, as permitted by Rule 12b-25. About Spanish Broadcasting Headquartered in Coconut Grove, Florida, Spanish Broadcasting operates 21 radio stations targeting the Hispanic audience. The Company also owns and operates Mega TV, a television operation with over-the-air, cable and satellite distribution and affiliates throughout the U.S. and Puerto Rico. Its revenue for the twelve months ended Sept. 30, 2010, was approximately $140 million. Spanish Broadcasting reported a net loss of $20.0 million on $146 million of net revenue for the year ended Dec. 31, 2014, compared with a net loss of $88.6 million on $154 million of net revenue in 2013. As of Sept. 30, 2015, the Company had $457 million in total assets, $551 million in total liabilities and a total stockholders' deficit of $94 million. * * * In November 2010, Moody's Investors Service upgraded the corporate family and probability of default ratings for Spanish Broadcasting System, Inc., to 'Caa1' from 'Caa3' based on improved free cash flow prospects due to better than anticipated cost cutting and the expiration of an unprofitable interest rate swap agreement. Moody's said Spanish Broadcasting's 'Caa1' corporate family rating incorporates its weak capital structure, operational pressure in the still cyclically weak economic climate, generally narrow growth prospects (though Spanish language is the strongest growth prospect) given the maturity and competitive pressures in the radio industry, and the June 2012 maturity of its term loan magnify this challenge. In July 2010, Standard & Poor's Ratings Services raised its corporate credit rating on Miami, Fla.-based Spanish Broadcasting System Inc. to 'B-' from 'CCC+', based on continued improvement in the company's liquidity position. The rating outlook is stable. "The rating action reflects S&P's expectation that, despite very high leverage, SBS will have adequate liquidity over the intermediate term to meet debt maturities, potential swap settlements, and operating needs until its term loan matures on June 11, 2012," said Standard & Poor's credit analyst Michael Altberg. SQUARETWO FINANCIAL: S&P Lowers ICR to 'D' on Missed Payment ------------------------------------------------------------ Standard & Poor's Ratings Services said it lowered its long-term issuer credit rating on SquareTwo Financial Corp. to 'D' from 'CCC'. S&P also lowered its ratings on the company's senior second-lien notes to 'D' from 'CCC-'. At the same time, S&P removed the ratings from CreditWatch with negative implications, where S&P placed them on Dec. 11, 2015. The recovery rating remains '5', indicating S&P's expectation for modest (10% to 30%, higher end of the range) recovery. The rating actions follow the announcement by SquareTwo that it will not make its scheduled April 1, 2016, interest payment on the $290 million second-lien senior secured notes, due April 2017. The company is currently negotiating with the holders of the second-lien notes to restructure the debt and with the lenders on its first-lien revolving bank facility to amend and extend the facility. The facility, with an impending maturity of April 6, 2016, had $134 million outstanding at year-end 2015. "We not only expect the company to default on the second-lien notes," said Standard & Poor's credit analyst Richard Zell. "We also are uncertain whether the company will be able to avoid a general default on its obligations." S&P believes the company would have to first win at least a short-term extension from its first-lien lenders. It would then have to restructure the second-lien notes and either arrange for a longer-term extension of first-lien facility or for a new first-lien facility all together. That may also require additional capital. S&P believes it is possible that the first-lien lenders will provide the company with some flexibility -- perhaps through a short-term extension -- in the hopes of avoiding involvement in a bankruptcy. However, S&P is uncertain whether SquareTwo will be able accomplish the large task of restructuring the second-lien notes, extending its existing first-lien facility, or arranging a new facility, and potentially raising additional capital. In the event the company is able to limit default to the second-lien notes, S&P will reassess and raise the rating to a level commensurate with its view of its altered financial position. STELLAR BIOTECHNOLOGIES: TSX-V Delisting Takes Effect April 8 ------------------------------------------------------------- Stellar Biotechnologies, Inc., announced that the Company's voluntary delisting from the TSX Venture Exchange will be effective at the close of business April 8, 2016. Following the Effective Date, all of Stellar's common shares will continue to be listed and to trade on The Nasdaq Capital Market under the Company's symbol "SBOT." About Stellar Port Hueneme, Cal.-based Stellar Biotechnologies, Inc.'s business is to commercially produce and market Keyhole Limpet Hemocyanin ("KLH") as well as to develop new technology related to culture and production of KLH and subunit KLH ("suKLH") formulations. The Company markets KLH and suKLH formulations to customers in the United States and Europe. KLH is used extensively as a carrier protein in the production of antibodies for research, biotechnology and therapeutic applications. Stellar Biotechnologies reported a net loss of $8.43 million for the year ended Aug. 31, 2014, a net loss of $14.5 million for the year ended Aug. 31, 2013, and a net loss of $5.52 million for the year ended Aug. 31, 2012. Stellar Biotechnologies reported a net loss of $2.84 million on $758,689 of revenues for the year ended Sept. 30, 2015. As of Dec. 31, 2015, the Company had $10.35 million in total assets, $723,675 in total liabilities and $9.63 million in total shareholders' equity. STEWARD HEALTH: Moody's Raises CFR to B2, Outlook Stable -------------------------------------------------------- Moody's Investors Service upgraded Steward Health Care System LLC's Corporate Family Rating to B2 from B3 and Probability of Default Rating to B2-PD from B3-PD. Moody's also affirmed the B2 rating on the company's senior secured term loan. The rating outlook is stable. The upgrade of Steward's Corporate Family Rating reflects Moody's acknowledgment that the change in the company's pension plans has resulted in a considerable decline in the company's financial obligations and adjusted leverage. Moody's anticipates that the company will also continue to see improvements in operating results from previous restructuring efforts, including cost cutting and the closure of the Quincy facility. The rating agency also expects Steward to have lower capital spending and a reduction in cash pension plan contributions in the years ahead. These improvements will enhance liquidity through increased free cash flow and provide the capacity to repay debt. The affirmation of the senior secured rating at B2 reflects the fact that the term loan now represents the preponderance of debt in the company's capital structure. Therefore, the rating on the company's term loan is now the same as Steward's Corporate Family Rating. This follows the restructuring and elimination of the company's defined benefit pension obligation in December 2015. The obligation had been modeled as an unsecured debt claim in Moody's assessment of loss given default. Following is a summary of Moody's rating actions on Steward Health Care System LLC. Ratings upgraded: Corporate Family Rating to B2 from B3 Probability of Default Rating to B2-PD from B3-PD Ratings affirmed/LGD assessments revised: Senior secured term loan to B2 (LGD 4) from B2 (LGD 3) The rating outlook is stable RATINGS RATIONALE Steward's B2 Corporate Family Rating reflects Moody's expectation that the company will continue to operate with a moderately high level of funded debt. The rating also reflects Moody's view of the limitations of Steward's liquidity position, including modest free cash flow and significant reliance on its asset based revolver. The company's operations also remain concentrated in one very competitive market in eastern Massachusetts. However, the rating also reflects the benefit of the significant presence Steward has in its market and the potential for improvement in credit metrics following significant restructuring efforts. The stable rating outlook reflects Moody's expectation that leverage will decline modestly in the near term through improvements in EBITDA. Further, Moody's expects that growth in free cash flow from lower capital spending and a pension contributions will strengthen the company's liquidity. The ratings could be upgraded if Steward can significantly increase its scale and diversification. Further, the company must achieve and sustain positive free cash flow and decrease its reliance on the revolving credit facility. In addition, debt to EBITDA will have to be sustained below 4.0 times for a ratings upgrade. The ratings could be downgraded if liquidity weakens either through Steward's inability to generate positive free cash flow or additional limits on availability under the company's revolver. Increased uncertainty around the ability to comply with financial covenant requirements could also result in a rating downgrade. Finally, the ratings could be downgraded if debt to EBITDA is expected to be sustained above 5.5 times. Headquartered in Boston, MA, Steward Health Care System LLC is a fully integrated community care organization and community hospital network in Massachusetts. As of Sept. 30, 2015, the system's subsidiaries and affiliates owned and operated nine hospitals. For the twelve months ended September 30, 2015, Steward recognized approximately $2.2 billion of revenue. Steward is a controlled affiliate of Cerberus Capital Management, L.P. The principal methodology used in these ratings was Business and Consumer Service Industry published in December 2014. SUNDEVIL POWER: Hires Drinker Biddle as Counsel ----------------------------------------------- Sundevil Power Holdings, LLC, et al., seek authority from the U.S. Bankruptcy Court for the District of Delaware to employ Drinker Biddle & Reath LLP as counsel to the Debtors, nunc pro tunc to February 11, 2016. Sundevil Power requires Drinker Biddle to: a. assist in the preparation of the Debtors' schedules of assets and liabilities and related statements; b. advise the Debtors with respect to their powers and duties as debtors-in-possession; c. prepare necessary motions, applications, answers, proposed orders, reports, and other papers to be filed by the Debtors in order to prosecute the Bankruptcy Cases; d. appear before the Court to advocate the interests of the Debtors and their estates; e. negotiate with the Debtors' creditors and taking the necessary legal steps to formulate, confirm and consummate a plan of reorganization if feasible; f. prosecute and defend any adversary proceedings commenced in the Bankruptcy Cases; and g. assist in the performance of all other necessary and proper legal services for the Debtors' to prosecute their Bankruptcy Cases effectively. Sundevil Power will pay Drinker Biddle at these hourly rate: Attorneys $390-$910 Paraprofessionals $205-$340 Drinker Biddle will also be reimbursed for reasonable out-of-pocket expenses incurred. The following are provided in response to the request for additional information set forth in the Appendix B-Guidelines for Reviewing Applications for Compensation and Reimbursement of Expenses Filed under 11 U.S.C. Sec. 330 for Attorneys in Larger Chapter 11 Cases: -- Drinker Biddle's current hourly rates for services rendered on behalf of the Debtors range as follows: Billing Category U.S. Range Partners $580-$910 Associates $390-$500 Paraprofessionals $205-$340 Drinker Biddle represented the Debtors during the twelve-month period before the petition date, using the hourly rates listed above. Drinker Biddle's rates for postpetition work have not changed. Steven K. Kortanek, partner of Drinker Biddle & Reath LLP, 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. Drinker Biddle can be reached at: Steven K. Kortanek, Esq. DRINKER BIDDLE & REATH LLP 222 Delaware Avenue, Suite 1400 Wilmington, DE 19801 Tel: (302) 467-4200 Fax: (302) 467-4201 E-mail: Steven.Kortanek@dbr.com About Sundevil Power Merchant power generators Sundevil Power Holdings, LLC and SPH Holdco LLC sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D. Del. Case Nos. 16-10369 and 16-10370, respectively), on Feb. 12, 2016. The petitions were signed by Blake M. Carlson as authorized signatory. The Debtors estimated assets in the range of $100 million to $500 million and liabilities of at least $100 million. The Debtors have engaged Vinson & Elkins LLP as legal counsel, Drinker Biddle & Reath LLP as Delaware counsel, and Garden City Group as claims and noticing agent. Judge Kevin J. Carey is assigned to the case. SUNDEVIL POWER: Hires Garden City as Administrative Agent --------------------------------------------------------- Sundevil Power Holdings, LLC, et al. seek authority from the U.S. Bankruptcy Court for the District of Delaware to employ Garden City Group, LLC as administrative agent to the Debtors, nunc pro tunc to February 11, 2016. Sundevil Power requires Garden City to: (a) assist with the preparation and filing of the Debtors' schedules of assets and liabilities and statements of financial affairs; (b) assist with claims reconciliation, including generating claim objection exhibits and cure notices; (c) manage the publication of legal notices; (d) manage the solicitation and tabulation of votes on a chapter 11 plan including filing a declaration with the Court setting forth the methodology and results of the solicitation and tabulation and testifying, if necessary, in support of the declaration; (f) provide such other related administrative services not otherwise specified above as the Debtors or their professionals may require in connection with the Chapter 11 Cases. Garden City had received a retainer totaling $25,000 from the Debtors prior to the petition date. Sundevil Power will pay Garden City at these hourly rates: Title Standard Hourly Rates ----- --------------------- Administrative, Mailroom and $45-$55 Claims Control Project Administrators $70-$85 Project Supervisors $95-$110 Graphic Support & Technology Staff $100-$200 Project Managers and Senior Project $125-$175 Managers Directors and Asst. Vice Presidents $200-$295 Vice Presidents and above $295 Garden City will also be reimbursed for reasonable out-of-pocket expenses incurred. Angela Ferrante, senior vice president of Garden City Group, LLC, 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. Garden City can be reached at: Angela Ferrante GARDEN CITY GROUP, LLC 1985 Marcus Ave Lake Success, NY 11042 Tel: (631) 470-1852 E-mail: angela.ferrante@gardencitygroup.com About Sundevil Power Merchant power generators Sundevil Power Holdings, LLC and SPH Holdco LLC sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D. Del. Case Nos. 16-10369 and 16-10370, respectively), on Feb. 12, 2016. The petitions were signed by Blake M. Carlson as authorized signatory. The Debtors estimated assets in the range of $100 million to $500 million and liabilities of at least $100 million. The Debtors have engaged Vinson & Elkins LLP as legal counsel, Drinker Biddle & Reath LLP as Delaware counsel, and Garden City Group as claims and noticing agent. Judge Kevin J. Carey is assigned to the case. SUNDEVIL POWER: Hires Jefferies as Financial Advisor ---------------------------------------------------- Sundevil Power Holdings, LLC, et al., seek authority from the U.S. Bankruptcy Court for the District of Delaware to employ Jefferies LLP as financial advisor to the Debtors, nunc pro tunc to February 11, 2016. Sundevil Power requires Jefferies to: (a) provide advice and assistance to the Debtors in connection with a possible sale, disposition or other business transaction or series of transactions involving all or a material portion of the Debtors assets or equity interests; (b) become familiar with the financial condition and business of the Debtors; (c) provide the Debtors with financial advice and assistance in connection with a possible Third-Party Sale Transaction per Engagement Letter; (d) assist in identifying prospective purchasers, coordinating data room access for potential purchasers, and evaluating proposals received from the same; (e) familiarize with, to the extent Jefferies deems appropriate, and analyze, the business, operations, properties, financial condition and prospects of the Debtors; (f) advise the Debtors on the current state of the "restructuring market"; (g) provide the Debtors with financial advice and assistance in connection with a possible Restructuring per Engagement Letter; and (h) render such other financial advisory services as may from time to time be agreed upon by the Debtors and Jefferies. Sundevil Power will pay Jefferies as follows: -- Monthly Fee. A monthly fee equal to $50,000 per month until the expiration or termination of the Engagement Letter. The first Monthly Fee shall be payable one business day following execution of the Engagement Letter, and each subsequent Monthly Fee shall be payable in advance on each monthly anniversary thereafter. One hundred percent of any Monthly Fees actually paid to Jefferies shall be credited once against the Sale Transaction Fee or Restructuring Fee due to Jefferies. -- Sale Transaction Fee. Promptly upon closing of each Third- Party Sale Transaction, a fee equal to 1.0% of the Transaction Value, plus 5.0% of any cash distributions made to debtor SPH Holdco LLC's equityholders from proceeds of such Third-Party Sale Transaction. -- Restructuring Fee. In the event of a sale of assets or transfer of beneficial ownership of the Company to a secured lender, a fee equal to $1 million multiplied by the percentage of assets subject to such Restructuring, shall be payable upon the effectiveness of such Restructuring. Jefferies will also be reimbursed for reasonable out-of-pocket expenses incurred. With respect to the Managed Funds, Jefferies made the following additional disclosures: (a) among other things, the Managed Funds are (i) active direct investors in a number of portfolio companies and (ii) investors in a variety of debt instruments and mezzanine loans or similar securities and, together with the Equity Investments; and (b) the fund managers of the Managed Funds maintain control over investment decisions with respect to the Portfolio Holdings. Many financial institutions and parties in interest who may be involved in the chapter 11 cases may also be investors in the Managed Funds. Moreover, the Managed Funds may invest from time to time in Portfolio Holdings relating to the Debtor or parties in interest in the chapter 11 cases. In order to comply with securities laws and to avoid any appearance of impropriety, the employees of the Managed Funds are strictly separated from the employees of Jefferies. Jefferies maintains a strict separation between its employees assigned to the chapter 11 cases and employees involved in the management of Jefferies' investment banking division, on the one hand, and other employees of Jefferies and its affiliates, on the other hand. This separation is maintained through the use of information walls. These information walls include physical and technological barriers, compliance, and surveillance mechanisms and policies and procedures designed to prevent confidential information concerning the Debtors is permitted to be communicated to any persons working for the Managed Funds, Jefferies does not believe that the relationships outlined above constitute interests adverse to the estates or render Jefferies not disinterested in the chapter 11 cases. Jefferies has been engaged on various matters with the Debtors since May 2015 and, as a result, is intimately familiar with the Debtors' corporate and capital structure, management, operations and various other aspects of their business. Jefferies also advised the Debtors prior to the Petition Date regarding various restructuring alternatives, and worked with the Debtors to market their assets for sale to a third-party purchaser. During the 90 days prior to the Petition Date, Jefferies received from the Debtors, in the ordinary course, a total of $0 in Monthly Fees under the Engagement Letter and reimbursement of out-of-pocket expenses in the amount of $41,468.43. The Debtors do not owe Jefferies any amount for services performed or expenses incurred prior to the Petition Date. Richard Morgner, managing director and joint global head of restructuring and recapitalization at Jefferies 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. Jefferies can be reached at: Richard Morgner JEFFERIES LLP 520 Madison Avenue New York, NY 10022 Tel: (212) 284-2300 About Sundevil Power Merchant power generators Sundevil Power Holdings, LLC and SPH Holdco LLC sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D. Del. Case Nos. 16-10369 and 16-10370, respectively), on Feb. 12, 2016. The petitions were signed by Blake M. Carlson as authorized signatory. The Debtors estimated assets in the range of $100 million to $500 million and liabilities of at least $100 million. The Debtors have engaged Vinson & Elkins LLP as legal counsel, Drinker Biddle & Reath LLP as Delaware counsel, and Garden City Group as claims and noticing agent. Judge Kevin J. Carey is assigned to the case. SUNVALLEY SOLAR: Needs More Time to File 10-K --------------------------------------------- Sunvalley Solar, Inc., filed with the U.S. Securities and Exchange Commission a Notification of Late Filing on Form 12b-25 with respect to its annual report on Form 10-K for the year ended Dec. 31, 2015. According to the Company, it was unable to compile the necessary financial information required to prepare a complete filing. Thus, the Company was unable to file the periodic report in a timely manner without unreasonable effort or expense. The Company expects to file within the extension period. About Sunvalley Solar Sunvalley Solar, Inc., is a California-based solar power technology and system integration company. Since the inception of its business in 2007, the company has focused on developing its expertise and proprietary technology to install residential, commercial and governmental solar power systems. Sunvalley Solar reported a net loss of $1.28 million on $3.31 million of revenues for the year ended Dec. 31, 2014, compared with net income of $764,000 on $4.09 million of revenues for the year ended Dec. 31, 2013. As of Sept. 30, 2015, the Company had $6.10 million in total assets, $5.83 million in total liabilities and $271,209 in total stockholders' equity. Sadler, Gibb & Associates, LLC, in Salt Lake City, UT, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2014, citing that the Company has an accumulated deficit of $3.65 million, which raises substantial doubt about its ability to continue as a going concern. TELEFLEX INC: S&P Raises CCR to 'BB+', Outlook Stable ----------------------------------------------------- Standard & Poor's Ratings Services said it raised its corporate credit rating on Teleflex Inc. to 'BB+' from 'BB'. The rating outlook is stable. At the same time, S&P raised its rating on the senior secured debt to 'BBB' from 'BBB-' and raised its rating on the senior unsecured debt to 'BB+' from 'BB'. S&P also raised its subordinated debt rating to 'BB-' from 'B+'. S&P's recovery rating of '1' on the secured debt is unchanged. S&P revised the recovery rating on the unsecured debt to '4' from '3'. The '4' recovery rating reflects S&P's expectations for average recovery if a default occurs, at the high end of the 30% to 50% range. The recovery rating on the subordinated debt remains '6'. "The rating action follows seven quarters of leverage that has remained below 3x and our confidence that Teleflex can fund its growth objectives within this leverage level," said Standard & Poor's credit analyst Lucas Taylor. S&P believes Teleflex has $325 million of debt capacity. Furthermore, S&P sees no material impact from the recent product recall. The core business of Teleflex has shown stability, even with foreign exchange headwinds, and management has been able to grow revenues on a constant currency basis while reducing leverage. They have won 23 new group purchasing organizations/integrated delivery networks (GPO/IDN) contracts and extended another 31 more, with 22 awards coming in the fourth quarter of fiscal 2015. Although the company has announced a worldwide recall of ARROW International Intra-aortic Balloon Catheter Kits and Percutaneous Insertion Kits, the recall and any expenses associated with it were immaterial in fourth-quarter 2015 with no financial impact anticipated for 2016. The stable outlook reflects S&P's expectation that the company can sustain its recent improvements in credit-protection measures and that leverage levels will fluctuate between 2x and 3x, while pursuing moderate acquisitions costing between $75 million and $350 million. S&P calculates the company could absorb a larger acquisition, up to about $325 million, without hurting the rating. TELKONET INC: Hires Canaccord Genuity as Financial Advisor ---------------------------------------------------------- Telkonet, Inc., announced it has retained Canaccord Genuity as its financial advisor to assist management and the Board of Directors in the evaluation and review of potential strategic and capital raising opportunities aimed at enhancing shareholder value, as well as to advise the Company with respect to certain transactions that may ultimately be pursued as a result of such review. Jason Tienor, CEO of Telkonet, stated, "We are excited about this new relationship with Canaccord. Canaccord knows our industry, which makes them a great choice to help the Company evaluate strategic opportunities." The Company notes that no decision has been made to pursue any transaction and that there can be no assurance that the review process will result in the completion of any particular course of action or transaction. The Company has not set a timetable for completion of the review process, and it does not intend to comment further regarding the review process unless a specific transaction or other alternative is approved by the Board of Directors, the review process is concluded or it is otherwise determined that further disclosure is appropriate or required by law. About Telkonet Milwaukee, Wisconsin-based Telkonet, Inc., is a clean technology company that develops and manufactures proprietary energy efficiency and smart grid networking technology. Telkonet reported a net loss attributable to common stockholders of $207,357 on $15.08 million of total net revenues for the year ended Dec. 31, 2015, compared to a net loss attributable to common stockholders of $95,403 on $14.79 million of total net revenues for the year ended Dec. 31, 2014. As of Dec. 31, 2015, Telkonet had $10.97 million in total assets, $5.08 million in total liabilities and $5.89 million in total stockholders' equity. TELKONET INC: Incurs $207,000 Net Loss in 2015 ---------------------------------------------- Telkonet, Inc., filed with the Securities and Exchange Commission its annual report on Form 10-K disclosing a net loss attributable to common stockholders of $207,357 on $15.08 million of total net revenues for the year ended Dec. 31, 2015, compared to a net loss attributable to common stockholders of $95,403 on $14.79 million of total net revenues for the year ended Dec. 31, 2014. "Telkonet's gross profit increased 15 percent on moderate revenue growth demonstrating healthy core financials that will allow the company to achieve maximum returns as we accelerate sales," said Jason Tienor, Telkonet CEO. "And we've continued to expand our innovative Internet-of-Things platform and robust sales channel surrounding EcoSmart, our highest margin business line posting 23% year over year growth and positioning the business to take advantage of the rapidly growing IoT industry." As of Dec. 31, 2015, Telkonet had $10.97 million in total assets, $5.08 million in total liabilities and $5.89 million in total stockholders' equity. The Company said it is subject to legal proceedings and claims which arise in the ordinary course of its business. Although occasional adverse decisions or settlements may occur, the Company believes that the final disposition of such matters should not have a material adverse effect on its financial position, results of operations or liquidity. A full-text copy of the Form 10-K is available for free at: http://is.gd/g1iOht About Telkonet Milwaukee, Wisconsin-based Telkonet, Inc., is a clean technology company that develops and manufactures proprietary energy efficiency and smart grid networking technology. TERRAFORM GLOBAL: S&P Affirms 'B-' ICR, Outlook Remains Stable -------------------------------------------------------------- Standard & Poor's Ratings Services said it affirmed its 'B-' issuer credit rating on TerraForm Global Inc. The outlook remains stable. The issue ratings on the company's senior unsecured notes are also affirmed at 'B-'. The '3' recovery rating is unchanged, indicating S&P's expectation for meaningful recovery (50%-70%; upper half of the range) of principal if a payment default occurs. The stand-alone credit profile (SACP) remains unchanged at 'b+'. In addition, S&P affirmed the 'B+' senior secured rating. The recovery rating on the revolver is '1', indicating very high (90%-100%) recovery if a payment default occurs. TerraForm Global Operating LLC is the issuer of the debt. The application of the new project developer criteria, in this case, is based on S&P's assessment that TerraForm Global meets four key requirements: -- It operates in the energy industry, -- Receives less than 50% of its revenue from a single project and owns more than three projects, -- It owns majority or minority stakes in each project, and -- S&P does not expect any one project to receive undue parent support. TerraForm Global was formed to own and operate clean energy assets, largely from parent SunEdison Inc.'s portfolio. As of Dec. 31, 2015,it operates about 800 megawatts of capacity in several countries, including China, Brazil, India, and South Africa. The 'b+' SACP on TerraForm Global stems from a quality of distributions (QD) score of '4', medium asset diversity, and an aggressive financial risk profile. S&P also applies a negative comparable ratings analysis adjustor to reflect the the company's aggressive growth–by-acquisition strategy and the associated integration risk that accompanies it. Per S&P's group ratings methodology, it generally do not lower the ratings of insulated subsidiaries, like TerraForm Global, below 'B-' unless S&P believes that the subsidiary would likely be drawn into a parent company insolvency. The outlook on TerraForm Global is stable because its stand-alone credit profile (SACP) of 'b+' is above its corporate credit rating of 'B-'. TERRAFORM POWER: S&P Affirms 'B-' ICR, Outlook Remains Stable ------------------------------------------------------------- Standard & Poor's Ratings Services said it affirmed its 'B-' issuer credit rating on TerraForm Power Inc. (TERP). The outlook remains negative. The issue ratings on the company's senior unsecured notes are also affirmed at 'B-'. The recovery rating of '4' is unchanged, and reflects S&P's expectation for average (30%-50%; upper half of the range) recovery if a payment default occurs. The stand-alone credit profile (SACP) is also 'b-'. The application of the new project developer criteria, in this case, is based on S&P's assessment that TERP meets four key requirements: -- It operates in the energy industry, -- Receives less than 50% of its revenue from a single project and owns more than three projects, -- It owns majority or minority stakes in each project, and -- S&P does not expect any one project to receive undue parent support. TERP was formed to own and operate renewable power generation projects, notably solar and wind, in the U.S., U.K., Canada, and Chile. With its upcoming transactions, it will eclipse 3 gigawatts of total generating capacity spread across more than 40 projects. The 'B-' issuer credit rating and 'b-' SACP stems from a quality of distributions (QD) assessment of '4', medium asset diversity, and a highly leveraged financial risk profile. "We also apply a negative comparable ratings analysis adjustor to reflect the company's highly aggressive growth strategies," said Standard & Poor's credit analyst Michael Ferguson. The negative outlook reflects S&P's view that challenging market conditions, coupled with meaningful purchase commitments over the next few months, could limit the company's financial flexibility and lead to debt to EBITDA above 6x for an extended period. TEXARKANA HOTELS: Voluntary Chapter 11 Case Summary --------------------------------------------------- Debtor: Texarkana Hotels, LLC 2910 Harrisburg Lane Texarkana, TX 75503 Case No.: 16-50056 Chapter 11 Petition Date: March 31, 2016 Court: United States Bankruptcy Court Eastern District of Texas (Texarkana) Debtor's Counsel: Bill F. Payne, Esq. THE MOORE LAW FIRM, L.L.P. 100 North Main Street Paris, TX 75460-4222 Tel: (903) 784-4393 ext. 40 E-mail: lgarner@moorefirm.com bpayne@moorefirm.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $10 million to $50 million The petition was signed by Hiren Patel, managing member. The Debtor did not include a list of its largest unsecured creditors when it filed the petition. TONGJI HEALTHCARE: Delays Filing of 2015 Form 10-K -------------------------------------------------- Tongji Heahtcare Group, Inc. filed with the U.S. Securities and Exchange Commission a Notification of Late Filing on Form 12b-25 with respect to its annual report on Form 10-K for the year ended Dec. 31, 2015. According to the Company, it has encountered a delay in assembling the information, in particular its financial statements for the year ended Dec. 31, 2015, required to be included in its Annual Report. The Company expects to file its Dec. 31, 2015, Form 10-K Annual Report with the SEC within 15 calendar days of the prescribed due date. About Tongji Healthcare Based in Nanning, Guangxi, the People's Republic of China, Tongji Healthcare Group, Inc., a Nevada corporation, operates Nanning Tongji Hospital, a general hospital with 105 licensed beds. Tongji Healthcare reported a net loss of $462,000 on $2.52 million of total operating revenues for the year ended Dec. 31, 2014, compared with a net loss of $730,000 on $2.37 million of total operating revenues for the year ended Dec. 31, 2013. As of Sept. 30, 2015, the Company had $16.8 million in total assets, $19.4 million in total liabilities and a $2.60 million total stockholders' deficit. TRANS COASTAL: Seeks July 20 Extension for Chapter 11 Plan Filing ----------------------------------------------------------------- Trans Coastal Supply Company, Inc., asks the U.S. Bankruptcy Court for the Central District of Illinois to extend its exclusivity period for filing a Chapter 11 Plan and Disclosure Statement to July 20, 2016. The Debtor contends that it is in the process of negotiating with its creditors as to key aspects of its future plans to continue in business and concerning its treatment of the creditors. The Debtor's motion is scheduled for hearing on April 12, 2016 at 9:30 a.m. Trans Coastal Supply Company, Inc., is represented by: Jeffrey D. Richardson, Esq. 132 South Water Street, Suite 444 Decatur, IL 62523 Telephone: (217)425-4082 About Trans Coastal Supply Headquartered in Decatur, Illinois, Trans Coastal Supply Company Inc. ships grain and other agricultural products like the ethanol byproduct distillers dried grains (DDGS) in containers to overseas buyers. Trans Coastal filed for Chapter 11 bankruptcy protection (Bankr. C.D. Ill. Case No. 15-71147) on July 23, 2015. Judge Mary P. Gorman presides over the Debtor's case. Jeffrey D. Richardson, Esq., at Richardson & Erickson, represents the Debtor. The Debtor estimated both assets and liabilities between $10 million and $50 million. TRANS-LUX CORP: Reports Significantly Improved 2015 Results ----------------------------------------------------------- Trans-Lux Corporation reported significantly improved financial results for both the fourth quarter and the year ended Dec. 31, 2015. Trans-Lux president and chief executive officer J.M. Allain made the announcement while also stating that both the fourth quarter and the year had positive EBITDA. For the three months ended Dec. 31, 2015, Trans-Lux reported a net loss of $659,000 on $5 million of revenues compared to a net loss of $1.55 million on $5.87 million of revenues for the same period in 2014. For the year ended Dec. 31, 2015, the Company reported a net loss of $1.74 million on $23.56 million of revenues compared to a net loss of $4.62 million on $24.35 million of revenues for the year ended Dec. 31, 2014. The Company had positive EBITDA of $1.0 million for the year ended Dec. 31, 2015, compared with negative EBITDA of $1.4 million for 2014. Despite slightly lower revenues, both gross profit and gross margin were higher in 2015. Lower selling, general and administrative expenses also contributed to the improved operating results. The Company's audited consolidated financial statements for the fiscal year ended Dec. 31, 2015, were included in the Company's Annual Report on Form 10-K, which was filed with the Securities and Exchange Commission March 29, 2016. "The Company had a number of successes in 2015 including improving gross margins, lowering operating expenses and raising $3.3 million in equity capital with a rights offering in November," said Mr. Allain. "As we begin to move into 2016, our focus will now shift to increasing revenues by expanding our product line, promoting our brand and establishing new channel partners." A full-text copy of the press release is available for free at: http://is.gd/yh2AIj About Trans-Lux Corporation Norwalk, Conn.-based Trans-Lux Corporation (NYSE Amex: TLX) is a designer and manufacturer of digital signage display solutions for the financial, sports and entertainment, gaming and leasing markets. Trans-Lux Corporation reported a net loss of $1.74 million on $23.56 million of total revenues for the year ended Dec. 31, 2015, compared to a net loss of $4.62 million on $24.35 million of total revenues for the year ended Dec. 31, 2014. As of Dec. 31, 2015, Trans-Lux had $12.99 million in total assets, $13.14 million in total liabilities and a $156,000 total stockholders' deficit. Marcum LLP, in Hartford, CT, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2015, noting that the Company has suffered recurring losses from operations and has a significant working capital deficiency that raise substantial doubt about its ability to continue as a going concern. Further, the Company is in default of the indenture agreements governing its outstanding 9 1/2% subordinated debentures which were due in 2012 and its 8 1/4% limited convertible senior subordinated notes which were due in 2012 so that the trustees or holders of 25% of the outstanding Debentures and Notes have the right to demand payment immediately. Additionally, the Company has a significant amount due to their pension plan over the next 12 months. TRANSGENOMIC INC: Delays Filing of 2015 Annual Report ----------------------------------------------------- Transgenomic, Inc., filed with the Securities and Exchange Commission a Notification of Late Filing on Form 12b-25 with respect to its annual report on Form 10-K for the fiscal year ended Dec. 31, 2015. The Company has determined that it is unable to file the Form 10-K within the prescribed time period because the Company requires additional time for compilation and review to ensure adequate disclosure of certain information required to be included in the Form 10-K. The Company said the Form 10-K will be filed as soon as possible following the prescribed due date. About Transgenomic Transgenomic, Inc. -- http://www.transgenomic.com/-- is a global biotechnology company advancing personalized medicine in cardiology, oncology, and inherited diseases through its proprietary molecular technologies and world-class clinical and research services. The Company is a global leader in cardiac genetic testing with a family of innovative products, including its C-GAAP test, designed to detect gene mutations which indicate cardiac disorders, or which can lead to serious adverse events. Transgenomic has three complementary business divisions: Transgenomic Clinical Laboratories, which specializes in molecular diagnostics for cardiology, oncology, neurology, and mitochondrial disorders; Transgenomic Pharmacogenomic Services, a contract research laboratory that specializes in supporting all phases of pre-clinical and clinical trials for oncology drugs in development; and Transgenomic Diagnostic Tools, which produces equipment, reagents, and other consumables that empower clinical and research applications in molecular testing and cytogenetics. Transgenomic believes there is significant opportunity for continued growth across all three businesses by leveraging their synergistic capabilities, technologies, and expertise. The Company actively develops and acquires new technology and other intellectual property that strengthens its leadership in personalized medicine. Transgenomic reported a net loss available to common stockholders of $15.1 million in 2014, a net loss available to common stockholders of $16.7 million in 2013 and a net loss available to common stockholders of $8.98 million in 2012. As of Sept. 30, 2015, the Company had $24.5 million in total assets, $17.7 million in total liabilities and $6.71 million in total stockholders' equity. Ernst & Young LLP, in Hartford, Connecticut, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2014, citing that the Company has recurring losses from operations that raise substantial doubt about its ability to continue as a going concern. TRICORBRAUN INC: S&P Affirms 'B' LongTerm CCR, Outlook Stable ------------------------------------------------------------- Standard & Poor's Ratings Services said that it affirmed its ratings on TricorBraun Inc., including its 'B' long-term corporate credit rating. The outlook is stable. In addition, S&P affirmed its 'B+' issue-level ratings on the existing secured credit facilities and kept S&P's '2' recovery ratings (70%-90%; lower end of the range) unchanged "The affirmation reflects our view that the company's pro forma adjusted debt to EBITDA will remain below the 8x threshold that we deem appropriate for the existing ratings, while the company's liquidity will remain adequate," said Standard & Poor's credit analyst James Siahaan. While the purchase price of the transaction and associated fees requires the company to upsize its term loan by $25 million, borrow on its currently undrawn revolver, and use existing cash balances, S&P estimates that the company's pro forma adjusted debt to EBITDA (including the value of the PIK [payment-in-kind]-preferred) of 7x as of Dec. 31, 2015 will remain fairly steady over the next year. The outlook is stable. Although S&P expects TricorBraun to remain highly leveraged, the company's defensible position as a leading packaging distributor as well as its demonstrated ability to generate solid free cash flow supports the ratings. If the company were to complete any midsize acquisitions, then S&P would expect the integration to proceed smoothly. TRISTREAM EAST: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: Tristream East Texas, LLC Coats Rose, P.C. c/o Frank J. Wright 14755 Preston Road, Suite 600 Dallas, TX 75254 Case No.: 16-31521 Type of Business: Midstream operating company that provides gas gathering and processing services to producers from facilities in east Texas Chapter 11 Petition Date: March 30, 2016 Court: United States Bankruptcy Court Southern District of Texas (Houston) Judge: Hon. David R Jones Debtor's Counsel: Frank J Wright, Esq. COATS ROSE, P.C. 14755 Preston Rd, Ste 600 Dallas, TX 75254 Tel: 972-788-1600 Fax: 972-239-0138 Email: bankruptcy@coatsrose.com Estimated Assets: $10 million to $50 million Estimated Debts: $10 million to $50 million The petition was signed by Reid Smith, CEO. List of Debtor's 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Eagle Rock Acquisition Partnership Trade $185,448 Thermo Control, Inc. Trade $61,438 EMS USA, Inc. Trade $41,005 Hy-Tech Insulation, Inc. Trade $40,893 Targa Resources Partners LP Trade $40,848 Utility Rebate Consultants, Inv Trade $31,276 Sabre Operating Inc. Trade $24,040 In2Tex 3 LP Trade $17,832 Louisiana Valve Source, Inc. Trade $17,368 Noblett Electric Motor Service Trade $15,489 NALCO Champion Trade $13,865 Western Marketing Inc. Trade $12,607 Basic Energy Services, LP Trade $11,483 Nordon Corporation Trade $11,000 SAMCO Enterprises, Inc. Trade $9,501 Johnny Ray Clements Trade $8,424 DPC Industries Inc. Trade $7,991 John Crane Inc. Trade $7,194 Diversified Projects, Inc. Trade $6,725 UNIVAR USA Inc. Trade $6,539 TUCSON COUNTY SCHOOL: S&P Alters Outlook on BB Rating to Stable --------------------------------------------------------------- Standard & Poor's Ratings Services revised its outlook to stable from negative and affirmed its long-term rating of 'BB-' on Pima County Industrial Development Authority, Ariz.'s series 2007 educational revenue refunding bonds, issued for Tucson County Day School, a K-8 charter school. "The stable outlook reflects our view of the school's significant increase in enrollment after several years of softening, long operating history, well-tenured management team, and reasonable MADs burden," said Standard & Poor's credit analyst Ashley Ramchandani. It is S&P's opinion that the 'BB-' rating reflects the school's variable operating performance with margins ranging from negative 7% to positive 7% in the past three fiscal years, which has resulted in varying MADs coverage, and weak liquidity position with less than 30 days' cash on hand for the past two fiscal years. A loan agreement between the authority and the Tucson Country Day School secures the bonds, which are payable from any available revenue of the. Under the loan agreement, the school transferred its 10-acre site and facilities to the authority and leased back those facilities for school operations. The school has directed state per-pupil payments to be made directly to the trustee for debt service payments. Tucson Country Day School is located in the northeastern suburbs of Tucson and opened in 1968 as a private school. UNI-PIXEL INC: Incurs $37 Million Net Loss in 2015 -------------------------------------------------- Uni-Pixel, Inc., filed with the Securities and Exchange Commission its annual report on Form 10-K disclosing a net loss of $37.02 million on $3.75 million of revenue for the year ended Dec. 31, 2015, compared to a net loss of $25.7 million on $0 of revenue for the year ended Dec. 31, 2014. As of Dec. 31, 2015, the Company had $26.5 million in total assets, $7.46 million in total liabilities and $19.08 million in total shareholders' equity. "We have historically financed our operations primarily through the issuance of equity and debt securities and by relying on other commercial financing. Until revenue begins to increase on our products to support our operations we will continue to be highly dependent on financing from third parties. In April 2015, we sold $15.0 million of Convertible Notes and sold an additional $0.5 million of Convertible Notes in November 2015. On November 30, 2015 we sold 9,625,871 shares of our common stock, raising net proceeds of approximately $7.2 million. Barring unanticipated expenses, we expect the proceeds from this offering, together with our cash on hand and collaborative agreements with corporate partners, to support our operations through March 31, 2017." A full-text copy of the Form 10-K is available for free at: http://is.gd/WbDgF1 About Uni-Pixel Inc. The Woodlands, Tex.-based Uni-Pixel, Inc. (OTC BB: UNXL) -- http://www.unipixel.com/-- is a production stage company delivering its Clearly Superior(TM) Performance Engineered Films to the Lighting & Display, Solar and Flexible Electronics market segments. UNITED BANCSHARES: Delays Filing of 2015 Form 10-K -------------------------------------------------- United Bancshares, Inc. filed with the U.S. Securities and Exchange Commission a Notification of Late Filing on Form 12b-25 with respect to its annual report on Form 10-K for the year ended Dec. 31, 2015, saying that it was unable to file the subject Form 10-K in a timely manner because the Company is still in the process of completing its financial statements. About United Bancshares Located in Philadelphia, Pennsylvania, United Bancshares, Inc., is an African American controlled and managed bank holding company for United Bank of Philadelphia, a commercial bank chartered in 1992 by the Commonwealth of Pennsylvania, Department of Banking. United Bancshares reported a net loss of $343,000 on $2.90 million of total interest income for the year ended Dec. 31, 2014, compared with a net loss of $669,000 on $2.90 million of total interest income for the year ended Dec. 31, 2013. As of Sept. 30, 2015, the Company had $59.14 million in total assets, $56.23 million in total liabilities and $2.91 million in total shareholders' equity. McGladrey LLP, in Blue Bell, Pennsylvania, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2014, noting that the Company's regulatory capital amounts and ratios are below the required levels stipulated with Consent Orders between the Company and its regulators under the regulatory framework for prompt corrective action. Failure to meet the capital requirements exposes the Company to regulatory sanctions that may include restrictions on operations and growth, mandatory asset disposition, and seizure of the Company. These matters raise substantial doubt about the ability of the Company to continue as a going concern. VERITEQ CORP: Needs More Time to File 2015 Form 10-K ---------------------------------------------------- VeriTeQ Corporation was unable to file its annual report on Form 10-K for the year ended Dec. 31, 2015, within the prescribed time as the Company requires additional time to determine the proper accounting for certain financing transactions that occurred during the year, and to complete the audit of its financial statements. These transactions are highly complex and require extensive review and analysis. The Company expects to report revenue of approximately $287,000 for 2015. Net loss is expected to be approximately $16.3 million for the year ended Dec. 31, 2015, compared to $3.9 million for the year ended Dec. 31, 2014. The net loss in 2015 is expected to include stock-based compensation expense of approximately $6.9 million and net losses on the change in fair values of certain derivative and other fair valued instruments in the amount of approximately $6.8 million and non-cash interest expense in the amount of $1.7 million. The net loss in 2014 included non-cash interest expense of approximately $2.4 million and net gains on the change in fair values of derivative and other fair valued instruments in the amount of $6.3 million. About VeriTeQ VeriTeQ (formerly known as Digital Angel Corporation) develops innovative, proprietary RFID technologies for implantable medical device identification, and dosimeter technologies for use in radiation therapy treatment. VeriTeQ -- http://www.veriteqcorp.com/-- offers the world's first FDA cleared RFID microchip technology that can be used to identify implantable medical devices, in vivo, on demand, at the point of care. VeriTeQ's dosimeters provide patient safety mechanisms while measuring and recording the dose of radiation delivered to a patient in real time. Veriteq reported a net loss of $3.91 million on $151,000 of sales for the year ended Dec. 31, 2014, compared to a net loss of $18.2 million on $18,000 of sales for the year ended Dec. 31, 2013. As of Sept. 30, 2015, the Company had $1.08 million in total assets, $18.56 million in total liabilities, $1.84 million in series D preferred stock, and a $19.33 million total stockholders' deficit. EisnerAmper LLP, in New York, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2014, citing that the Company has incurred recurring net losses, and at Dec. 31, 2014, had negative working capital and a stockholders' deficit. These events and conditions raise substantial doubt about the Company's ability to continue as a going concern. VERIZON COMMUNICATIONS: Subsidiary Debt Ratings Raised, S&P Says ---------------------------------------------------------------- Standard & Poor's Ratings Services took these rating actions on debt at subsidiaries of New York City-based Verizon Communications Inc. that will be assumed by Frontier Communications Corp.: -- S&P lowered the issue-level rating on Verizon Florida Inc.'s $300 million of 6.86% senior notes due 2028 and Verizon California Inc.'s $200 million of 6.75% senior notes due 2027 to 'BB+' from 'BBB+' and assigned a '1' recovery rating to this debt, which indicates S&P's expectation for very high (90%-100%) recovery in the event of payment default. -- S&P lowered the issue-level rating on GTE Southwest Inc.'s $100 million of 8.4% senior first mortgage bonds due 2031 to 'BB+' from 'A' and assigned a '1' recovery rating to this issue as well. S&P removed all ratings from CreditWatch, where it had placed them with negative implications on Feb. 13, 2015, following the completion of the acquisition by Norwalk, Conn.-based Frontier Communications of certain properties in California, Texas, and Florida from Verizon in a transaction valued at about $10.5 billion. The ratings on these debt issues are two notches above the 'BB-' corporate credit rating on Frontier. At the same time, S&P raised the issue-level rating on Frontier West Virginia's 8.4% debentures due 2029 to 'BB+' from 'BB-' and revised the recovery rating to '1' from '3'. The assumed and existing subsidiary note issuances are structurally senior to the debt at the parent level and these subsidiaries do not guarantee the debt at the parent. Guarantors for the senior secured facilities at Frontier consist solely of a pledge of the capital stock of Frontier North, which S&P estimates would represent around 15% of the enterprise value in a default scenario. S&P estimates that the assets that are being transferred to Frontier from Verizon will comprise about 40% of consolidated pro forma EBITDA, excluding cost synergies. Based on S&P's default valuation of about $12.5 billion, S&P believes the value attributable to the Verizon assets translates to around $5 billion of priority value to bondholders at these entities. While S&P generally caps recovery ratings for unsecured debt at '3' for issuers rated 'BB-' or higher, Frontier's existing credit facility has restrictive covenants that limits the amount of pari passu unsecured debt at the operating subsidiaries and S&P thinks it is highly unlikely that the company would issue new debt at these subsidiaries that could impair recovery prospects for existing bondholders. As a result, S&P believes that the existing bonds will have recovery in excess of 90% in a default scenario. While the $100 million of GTE Southwest first mortgage bonds are secured, S&P do not differentiate the debt ratings from those on the other assumed and existing subsidiary bonds since S&P expects that each would get full recovery in a default scenario. RATINGS LIST Verizon Communications Inc. Corporate Credit Rating BBB+/Stable/A-2 Downgraded; Removed From CreditWatch; Recovery Ratings Assigned To From Verizon Florida Inc. Verizon California Inc. Senior Unsecured BB+ BBB+/Watch Neg Recovery Rating 1 NR GTE Southwest Inc. Senior Secured BB+ A/Watch Neg Recovery Rating 1 NR Frontier Communications Corp. Corporate Credit Rating BB-/Stable/-- Upgraded; Recovery Ratings Revised Frontier West Virginia Inc. Senior Unsecured BB+ BB- Recovery Rating 1 3L VERMILLION INC: Incurs $19.1 Million Net Loss in 2015 ----------------------------------------------------- Vermillion, Inc., filed with the Securities and Exchange Commission its annual report on Form 10-K disclosing a net loss of $19.1 million on $2.17 million of total revenue for the year ended Dec. 31, 2015, compared to a net loss of $19.2 million on $2.52 million of total revenue for the year ended Dec. 31, 2014. As of Dec. 31, 2015, Vermillion had $20.96 million in total assets, $3.41 million in total liabilities and $17.5 million in total stockholders' equity. "We have incurred significant net losses and negative cash flows from operations since inception, and as a result has an accumulated deficit of approximately $370,588,000 at December 31, 2015. The Company expects to incur a net loss in 2016 and the foreseeable future. The Company's management believes that successful achievement of the business objectives will require additional financing. The Company expects to raise capital through a variety of sources, which may include the public equity market, private equity financing, collaborative arrangements, licensing arrangements, and/or public or private debt. However, additional funding may not be available when needed or on terms acceptable to the Company. If the Company is unable to obtain additional capital, it may not be able to continue sales and marketing, research and development, or other operations on the scope or scale of current activity and that could have a material adverse effect on the business, results of operations and financial condition. "There can be no assurance that the Company will achieve or sustain profitability or positive cash flow from operations. However, management believes that the current working capital position as of the date of these financial statements will be sufficient to meet the Company's working capital needs for at least the next twelve months. Management expects cash from product sales to be the Company's only material, recurring source of cash in 2016," the Company said in the report. A full-text copy of the Form 10-K is available for free at: http://is.gd/GMnilO About Vermillion Vermillion, Inc., is dedicated to the discovery, development and commercialization of novel high-value diagnostic tests that help physicians diagnose, treat and improve outcomes for patients. Vermillion, along with its prestigious scientific collaborators, has diagnostic programs in oncology, hematology, cardiology and women's health. The Company filed for Chapter 11 bankruptcy protection (Bankr. D. Del. Case No. 09-11091) on March 30, 2009. Vermillion's legal advisor in connection with its successful reorganization efforts wass Paul, Hastings, Janofsky & Walker LLP. Vermillion emerged from bankruptcy in January 2010. The Plan called for the Company to pay all claims in full and equity holders to retain control of the Company. VERSO CORP: NewPage Taps Latham & Watkins as Conflicts Counsel -------------------------------------------------------------- Debtors NewPage Investment Company LLC and its affiliates ask the U.S. Bankruptcy Court for the District of Delaware for permission to employ Latham & Watkins LLP as special conflicts counsel, nunc pro tunc to the Petition Date. Pursuant to separate retention applications filed with the Court, (i) the Debtors, including the NewPage Debtors, have sought to retain O'Melveny & Myers LLP and Richards Layton & Finger, PA, as general bankruptcy co-counsel to the Debtors; and (ii) the Verso Debtors have sought to retain Quinn Emanuel Urquhart & Sullivan LLP as their special conflicts counsel. D. J. Baker, a partner at Latham with offices across the United States, Europe, and Asia, tells the Court that the firm's professional hourly rates are: Position Range of Hourly Rates -------- --------------------- Partners $925 - $1,375 Counsel $915 - $1,250 Associates $395 - $1,020 Paraprofessionals $175 - $795 The following professionals presently are expected to have primary responsibility for providing services to the NewPage Debtors: D. J. Baker $1,325 Adam S. Ravin $995 Annemarie V. Reilly $875 Marc Zelina $695 In addition, as necessary, other Latham professionals and paraprofessionals will provide services to the NewPage Debtors. Of amounts paid to Latham prior to the Petition Date, less amounts applied or to be applied to prepetition fees and expenses, Latham estimates that it continues to hold a remaining retainer of approximately $8,955, which amount may be adjusted for any prepetition charges not reflected in Latham's accounting system at the time of such estimate. To the best of the Debtors' knowledge, Latham is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: D. J. Baker, Esq. Adam S. Ravin, Esq. LATHAM & WATKINS LLP 885 Third Avenue New York, NY 10022-4834 Tel: (212) 906-1200 Fax: (212) 751-4864 E-mail: dj.baker@lw.com adam.ravin@lw.com About Verso Corporation Verso Corporation claims to be the leading North American producer of coated papers, which are used primarily in magazines, catalogs, high-end advertising brochures and annual reports, among other media and marketing publications. It employs approximately 5,200 personnel. Verso Corporation and 26 of its affiliates, including NewPage Corporation, filed Chapter 11 bankruptcy petitions (Bankr. D. Del. Case Nos. 16-10163 to 16-10189, respectively) on Jan. 26, 2016. The petitions were signed by David Paterson, the president and CEO. The Debtors disclosed total assets of $2.9 billion and total debts of $3.87 million. The Debtors have engaged O'Melveny & Myers LLP as general counsel, Paul, Weiss, Rifkind, Wharton & Garrison LLP as corporate counsel, Richards, Layton & Finger, P.A. as Delaware counsel, PJT Partners L.P. as investment banker, Alvarez & Marsal North America, LLC as financial advisor and Prime Clerk LLC as claims and noticing agent. The U.S. Trustee for Region 3 has appointed seven creditors of Verso Corp. and its affiliates to serve on the official committee of unsecured creditors. VERSO CORP: Taps Paul Weiss to Handle General Corporate Matters --------------------------------------------------------------- Verso Corporation, et al., ask the U.S. Bankruptcy Court for the District of Delaware for permission to employ Paul, Weiss, Rifkind, Wharton & Garrison LLP as their special corporate and transactions counsel in connection with their debtor-in-possession and exit financing and other general corporate matters, nunc pro tunc to the Petition Date. In addition, Paul Weiss, through partners and associates in its restructuring, mergers and acquisitions, and corporate finance practices, has worked closely with the Debtors and their professionals on various aspects of the restructuring prior to the Petition Date, including the Debtors' debtor-in-possession financing and sale ofcertain assets of the Debtors. Specifically, Gregory A. Ezring, Esq., Brad J. Finkelstein, Esq., Taurie M. Zeitzer, Esq., and Brian M. Janson, Esq., partners at Paul Weiss, together with other partners, counsel, and associates in the Corporate Department of Paul Weiss, have represented the Debtors as their outside counsel since 2011, working closely with and advising the Debtors in connection with a wide range of corporate matters. These include: (i) compliance with federal securities laws and regulations, including, without limitation, the preparation and filing of reports with the Securities and Exchange Commission, press releases, and other disclosure documents; (ii) general corporate matters, including meetings of the board and its committees and other corporate governance matters; (iii) executive compensation matters; (iv) federal, state, and tax matters; (v) public and private placement of securities, bank financings, and other financing matters; and (vi) mergers, acquisitions, and other strategic transactions, including in connection with Verso Corp.'s acquisition of NewPage Corporation. Paul Weiss will, among other things: a) advise and assist the Debtors with respect to the Debtors' debtor-in-possession and any other financing, including exit financing; b) advise and assist the Debtors with respect to the Debtors' general corporate issues, including, but not limited to, compliance with federal securities law and related issues, and any other matters that may arise in connection with prior securities filing, as well as corporate governance, executive compensation, tax, and financing matters, and other strategic transactions; and c) provide historical information about the Debtors' activities from 2011 through the Petition Date, to the extent such information is necessary for the completion of the Debtors' restructuring efforts in these cases or other matters. Jeffrey D. Saferstein, a partner in the firm of Paul Weiss with office located at 1285 Avenue of the Americas, New York City, tells the Court that the firm's billing rates currently range from $995 to $1,330 for partners, $945 to $970 for counsel, $425 to $900 for staff attorneys and associates and $95 to $315 for para-professionals. Paul Weiss generally adjusts its rates on an annual basis in October, and Paul Weiss intends to charge the Debtors based on any such adjustments. Paul Weiss received approximately $4,506,301 in payment of fees and expenses from the Debtors. Prior to the Petition Date, Paul Weiss held $250,000 on account, which amount is being applied to any outstanding balances existing as of the Petition Date. To the best of the Debtors' knowledge, Paul Weiss does not represent or hold any interest that is adverse to the Debtors or their estates with respect to the special counsel matters. In a declaration submitted by Mr. Saferstein, he provided these information consistent with the U.S. Trustee Guidelines: -- Paul Weiss has not agreed to a variation of its standard or customary billing arrangements for representing the Debtors during their chapter 11 cases. -- None of Paul Weiss' professionals included in this engagement have varied their rate based on the geographic location of these chapter 11 cases. -- Paul Weiss represented the Debtors since 2011 as their general outside counsel. Except as noted above, the billing rates and material financial terms in connection with such representation have not changed postpetition other than due to annual and customary firm-wide adjustments to Paul Weiss' hourly rates in the ordinary course of Paul Weiss' business. -- The Debtors and Paul Weiss expect to develop a prospective budget and staffing plan for Paul Weiss' engagement to reasonably comply with the U.S. Trustee's requests for information and additional disclosures. About Verso Corporation Verso Corporation claims to be the leading North American producer of coated papers, which are used primarily in magazines, catalogs, high-end advertising brochures and annual reports, among other media and marketing publications. It employs approximately 5,200 personnel. Verso Corporation and 26 of its affiliates, including NewPage Corporation, filed Chapter 11 bankruptcy petitions (Bankr. D. Del. Case Nos. 16-10163 to 16-10189, respectively) on Jan. 26, 2016. The petitions were signed by David Paterson, the president and CEO. The Debtors disclosed total assets of $2.9 billion and total debts of $3.87 million. The Debtors have engaged O'Melveny & Myers LLP as general counsel, Paul, Weiss, Rifkind, Wharton & Garrison LLP as corporate counsel, Richards, Layton & Finger, P.A. as Delaware counsel, PJT Partners L.P. as investment banker, Alvarez & Marsal North America, LLC as financial advisor and Prime Clerk LLC as claims and noticing agent. VERSO CORP: Taps Whiteford Taylor as Delaware Conflicts Counsel --------------------------------------------------------------- Verso Corporation, et al., ask the U.S. Bankruptcy Court for the District of Delaware for permission to employ Whiteford, Taylor & Preston LLC as Delaware special conflicts counsel nunc pro tunc to Jan. 26, 2016. WTP as its Delaware special counsel will, among things: a. provide legal advice regarding local rules, practices, and procedures and provide substantive and independent legal advice relating to the Verso Debtors' transactions with the NewPage Debtors and related matters, bearing in mind that the Delaware Bankruptcy Court relies on Delaware counsel such as WTP to be involved in the bankruptcy proceeding; b. draft, review, and comment on drafts of documents to ensure compliance with local rules, practices, and procedures; and c. draft, file, and serve of documents as requested by Quinn Emanuel Urquhart & Sullivan LLP as their special conflicts counsel. Quinn Emanuel and WTP will coordinate closely to ensure that the legal services provided to the Verso Debtors by each firm are not duplicative. The current hourly rates of the WTP professionals anticipated to be primarily staffed on the matter are: Attorney/Status Hourly Rate --------------- ----------- Christopher M. Samis, partner $530 L. Katherine Good, counsel $500 Chantelle D. McClamb, associate $330 Stephanie Lisko, paralegal $245 To the best of the Debtors' knowledge, WTP is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. The following is provided in response to the request for additional information set forth in Paragraph D.1. of the Revised UST Guidelines: Question: Did you agree to any variations from, or alternatives to, your standard or customary billing arrangements for this engagement? Response: WTP has reduced its standard photocopy charge from $0.10 per page to $0.05 per page. Question: Do any of the professionals included in this engagement vary their rate based on the geographic location of the bankruptcy case? Response: No. Question: If you represented the client in the 12 months prepetition, disclose your billing rates and material financial terms for the prepetition engagement, including any adjustments during the 12 months prepetition. If your billing rates and material financial terms have changed postpetition, explain the difference and the reasons for the difference. Response: WTP did not represent any of the Verso Debtors in the 12 months prepetition. Question: Has your client approved your prospective budget and staffing plan, and, if so for what budget period? Response: Yes. For the period from January 26, 2016 through March 26, 2016. About Verso Corporation Verso Corporation claims to be the leading North American producer of coated papers, which are used primarily in magazines, catalogs, high-end advertising brochures and annual reports, among other media and marketing publications. It employs approximately 5,200 personnel. Verso Corporation and 26 of its affiliates, including NewPage Corporation, filed Chapter 11 bankruptcy petitions (Bankr. D. Del. Case Nos. 16-10163 to 16-10189, respectively) on Jan. 26, 2016. The petitions were signed by David Paterson, the president and CEO. The Debtors disclosed total assets of $2.9 billion and total debts of $3.87 million. The Debtors have engaged O'Melveny & Myers LLP as general counsel, Paul, Weiss, Rifkind, Wharton & Garrison LLP as corporate counsel, Richards, Layton & Finger, P.A. as Delaware counsel, PJT Partners L.P. as investment banker, Alvarez & Marsal North America, LLC as financial advisor and Prime Clerk LLC as claims and noticing agent. The U.S. Trustee for Region 3 has appointed seven creditors of Verso Corp. and its affiliates to serve on the official committee of unsecured creditors. VICTORY ENERGY: Needs More Time to File 2015 Annual Report ---------------------------------------------------------- Victory Energy Corporation filed with the U.S. Securities and Exchange Commission a Notification of Late Filing on Form 12b-25 with respect to its annual report on Form 10-K for the year ended Dec. 31, 2015. "The registrant has not finalized its audited financial statements for the period ended December 31, 2015. As a result, the registrant is unable to file its Form 10-K within the prescribed time period without unreasonable effort or expense. The registrant anticipates that it will file the Form 10-K within the fifteen-day grace period provided by Exchange Act Rule 12b-25," according to the regulatory filing. About Victory Energy Austin, Texas-based Victory Energy Corporation is engaged in the exploration, acquisition, development and exploitation of domestic oil and gas properties. Current operations are primarily located onshore in Texas, New Mexico and Oklahoma. Victory Energy reported a net loss of $4.22 million in 2014 following a net loss of $2.11 million in 2013. As of Sept. 30, 2015, the Company had $1.89 million in total assets, $4.13 million in total liabilities, and a $2.24 million total stockholders' deficit. Weaver and Tidwell, L.L.P., in Houston, Texas, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2014, citing that the Company has experienced recurring losses since its inception and has an accumulated deficit, which raise substantial doubt regarding the Company's ability to continue as a going concern. VISCOUNT SYSTEMS: Delays Filing of 2015 Annual Report ----------------------------------------------------- Viscount Systems, Inc., disclosed it was unable to file its annual report on Form 10-K for the period ended Dec. 31, 2015, on a timely basis because the Company requires additional time to work with its auditors and legal counsel to prepare and finalize the Form 10-K. The Company anticipates that it will file the Form 10-K no later than the fifteenth calendar day following the prescribed filing date. About Viscount Systems Burnaby, Canada-based Viscount Systems, Inc., is a manufacturer, developer and service provider of access control security products. Viscount Systems reported a net loss and comprehensive loss of C$991,000 on C$4.76 million of sales for the year ended Dec. 31, 2014, compared to a net loss and comprehensive loss of C$3.08 million on C$4.13 million of sales in 2013. As of June 30, 2015, the Company had C$1.84 million in total assets, C$1.74 million in total liabilities, C$16,696 in convertible redeemable preferred stock and C$88,796 in total stockholders' equity. Dale Matheson Carr-Hilton Labonte LLP, in Vancouver, Canada, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2014, citing that the Company has incurred losses in developing its business, and further losses are anticipated in the future. The Company requires additional funds to meet its obligations and the costs of its operations and there is no assurance that additional financing can be raised when needed. These factors raise substantial doubt about the Company's ability to continue as a going concern. VISUALANT INC: Files Resale Prospectus with SEC ----------------------------------------------- Visualant, Incorporated filed with the Securities and Exchange Commission a preliminary prospectus on Form S-1 relating to the resale by Discover Growth Fund of up to _____ shares of the Company's common stock that it may issue to the selling stockholder upon conversion of Series B Redeemable Convertible Preferred Stock at a conversion price of $7.50 per share, subject to certain adjustments. The common stock covered by this prospectus may be offered for resale from time to time by the selling stockholder in accordance with the terms described in the section entitled "Plan of Distribution." The Company will not receive any of the proceeds from the sale of the common stock by the selling stockholder. The Company's common stock is quoted on the OTCQB Marketplace, operated by OTC Markets Group, under the symbol "VSUL". On March 29, 2016, the last reported sale price for the Company's common stock on the OTCQB Marketplace was $6.68 per share. On June 17, 2015, the Company effected a 1-for-150 reverse stock split of its common stock. All warrant, option, share and per share information in this prospectus gives retroactive effect to the 1-for-150 split with all numbers rounded up to the nearest whole share. A full-text copy of the Form S-1 registration statement is available for free at http://is.gd/4gCLO8 About Visualant Inc. Seattle, Wash.-based Visualant, Inc., was incorporated under the laws of the State of Nevada on Oct. 8, 1998. The Company develops low-cost, high speed, light-based security and quality control solutions for use in homeland security, anti- counterfeiting, forgery/fraud prevention, brand protection and process control applications. Visualant reported a net loss of $2.63 million on $6.29 million of revenue for the year ended Sept. 30, 2015, compared to a net loss of $1.01 million on $7.98 million of revenue for the year ended Sept. 30, 2014. As of Dec. 31, 2015, the Company had $2.43 million in total assets, $9.69 million in total liabilities, all current, and a total stockholders' deficit of $7.25 million. PMB Helin Donovan, LLP, in Seattle, Washington, issued a "going concern" qualification on the consolidated financial statements for the year ended Sept. 30, 2015, citing that Company has sustained a net loss from operations and has an accumulated deficit since inception. These factors raise substantial doubt about the Company's ability to continue as a going concern. VYCOR MEDICAL: Incurs $2.25 Million Net Loss in 2015 ---------------------------------------------------- Vycor Medical, Inc., filed with the Securities and Exchange Commission its annual report on Form 10-K disclosing a net loss available to common shareholders of $2.25 million on $1.13 million of revenue for the year ended Dec. 31, 2015, compared to a net loss available to common shareholders of $4.04 million on $1.25 million of revenue for the year ended Dec. 31, 2014. As of Dec. 31, 2015, Vycor had $2.02 million in total assets, $877,009 in total liabilities and $1.14 million in total stockholders' equity. The Company's auditors Paritz & Company, P.A., in Hackensack, New Jersey, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2015, citing that: "The ability of the Company to continue as a going concern is dependent upon, among other things, its successful execution of its plan of operations and ability to raise additional financing. There is no guarantee that the Company will be able to raise additional capital or sell any of its products or services at a profit. As discussed in note 2 to the financial statements, the Company has incurred a net loss since inception, including a net loss of $2,082,643 for the year ended December 31, 2015 and the Company expect to continue to incur additional losses in the future, including additional development cost, cost related to marketing and manufacturing expenses. The Company has incurred negative cash flows from operations since inception. As of December 31, 2015, the Company has stockholders' equity of $1,145,722 and cash and cash equivalents of $347,477. The Company believes it would not have enough cash to meet its needs unless the Company is able to obtain additional cash from the issuance of debt or equity securities. These factors, among others, raise substantial doubt regarding the Company’s ability to continue as a going concern. The accompanying financial statements do not include any adjustments that might result from the outcome of this uncertainty." Management Commentary "We have been encouraged by the progress of NovaVision's Internet-delivered therapies in the U.S. and the early positive reception in Europe," said Peter Zachariou, CEO of Vycor Medical. "With the company's limited resources we are focused initially on direct-to-patient website and social media marketing, before implementing the other marketing strategies. It takes an average of 10 weeks from contact to signing up a patient so the benefits of the new model take time to build. "Vycor's flat sales were a reflection of weak US sales in July and August which recovered in September and this recovery has continued into 2016. We have now launched our new VBASMini and have added 17 new sales reps in the US since Q3 2015 so are optimistic for the division. "We have continued to reduce our operating loss before depreciation and amortization (or "Cash Burn"), which on a non-GAAP basis for the fourth quarter was $256,000 as compared to $459,000 for the fourth quarter of 2014, a reduction of 44%, and are focused on increasing revenues while maintaining our low costs, with the objective of continuing to decrease our Cash Burn." A full-text copy of the Form 10-K is available for free at: http://is.gd/7ohMtu About Vycor Medical Boca Raton, Fla.-based Vycor Medical, Inc. (OTC BB: VYCO) -- http://www.VycorMedical.com/-- is a medical device company committed to making neurological brain, spinal and other surgical procedures safer and more effective. The Company's flagship, Patent Pending ViewSite(TM) Surgical Access Systems represent an exciting new minimally invasive access and retraction system that holds the potential for speedier, safer and more economical brain, spinal and other surgeries and a quicker patient discharge. Vycor's innovative medical instruments are designed to optimize neurosurgical site access, reduce patient risk, accelerate recovery, and add tangible value to the professional medical community. ZAYO GROUP: Moody's Raises Rating on Sr. Unsecured Notes to B3 -------------------------------------------------------------- Moody's Investors Service has upgraded the ratings for Zayo Group LLC's senior unsecured notes to B3 (LGD5) from Caa1 (LGD5) based on the expected change in capital structure following the company's incremental debt raise. Zayo will raise $550 million of new unsecured debt and use the proceeds to repay $326 million of unsecured 10.125% notes and approximately $200 million of senior secured term loan debt. The reduction in senior secured debt will improve the expected recovery of the unsecured debt class such that it warrants an upgrade to B3. All of Zayo's other ratings, including the B2 corporate family rating (CFR), B2-PD probability of default rating, SGL-1 speculative grade liquidity rating, and Ba2 (LGD2) senior secured debt rating are affirmed. The outlook remains positive. Issuer: Zayo Group, LLC Affirmations: Probability of Default Rating, Affirmed B2-PD Speculative Grade Liquidity Rating, Affirmed SGL-1 Corporate Family Rating, Affirmed B2 Senior Secured Bank Credit Facility, Affirmed Ba2 (LGD2) Upgrades: Senior Unsecured Regular Bond/Debenture, Upgraded to B3 (LGD5) from Caa1 (LGD5) Outlook Actions: Outlook, Remains Positive RATINGS RATIONALE Zayo's B2 corporate family rating reflects its strong revenue growth, stable base of contracted recurring revenues, valuable fiber optic network assets and expectations of Moody's adjusted leverage declining below 12/31/15 levels of about 5.5x. Zayo is well positioned for continued growth from strong bandwidth demand from both carrier and enterprise customers. Although Zayo's aggressive M&A stance is generally credit negative, management has demonstrated its ability to execute a high quantity of both small and large acquisitions and achieve (or exceed) projected merger benefits, and management's skill in navigating these transactions does offset a meaningful amount of this risk. Zayo's business model requires heavy capital investment and is susceptible to customer churn, both of which pressure free cash flow. And, in addition to increasing its credit risk, Zayo's serial debt-financed acquisition activity has also led to poor visibility into the company's organic growth and steady state cost structure. The positive outlook reflects Moody's view that Zayo will continue its strong EBITDA growth such that leverage trends lower and free cash flow remains positive. Zayo has increased capital investment but primarily in response to strong demand for wireless backhaul projects that have defined payback parameters. Moody's expects Zayo's capex to plateau and free cash flow to continue to grow such that it can continue to fully self-fund its aggressive capex program and finance an increasing portion of future M&A targets from internally generated cash. The ratings for the debt instruments reflect both the overall probability of default of Zayo, to which Moody's has assigned a probability of default rating (PDR) of B2-PD, and individual loss given default assessments. The senior secured credit facilities are rated Ba2 (LGD2), three notches higher than the CFR given the loss absorption from the B3 (LGD5) rated senior unsecured notes. Moody's expects Zayo to maintain very good liquidity supported by $176 million of cash on hand as of Dec. 31, 2015, and an effectively undrawn $450 million revolver. Moody's also expects the company to generate modest free cash flow of around $100 million annually going forward. Zayo has no debt maturities prior to 2020 and the covenants governing Zayo's secured debt offer ample cushion relative to the most recent results. Moody's could upgrade Zayo's ratings if adjusted leverage approaches 4.5x and FCF/Debt is sustained around 10%. Downward rating pressure could develop if liquidity deteriorates or if capital intensity increases such that Zayo is unable to generate sustainable positive free cash flow or if leverage exceeds 6x on a sustained basis. The principal methodology used in these ratings was Global Communications Infrastructure Rating Methodology published in June 2011. Headquartered in Boulder, Colorado, Zayo Group is a provider of bandwidth infrastructure and network-neutral interconnection services with significant fiber network assets and international reach. [*] Moody's Concludes Rating Reviews on 3 US B-Rated E&P Companies ------------------------------------------------------------------ Moody's Investors Service, on April 1, 2016, concluded rating reviews on three US B-rated exploration and production (E&P) companies. Moody's downgraded one company's ratings three notches, and upgraded two companies' ratings one notch. RATINGS RATIONALE Oil prices have dropped substantially reflecting continuing oversupply in the global oil markets, very high inventory levels and additional Iranian oil exports coming on line. Furthermore, North American natural gas and natural gas liquids prices remain quite weak. Moody's lowered its oil price estimates on January 21 and expects a slow recovery for oil prices over the next several years. For E&P companies, cash flow declines in tandem with oil prices, with the decline weakening credit metrics and liquidity, and increasing their negative free cash flow. The drop in oil prices and corresponding capital market concerns will also raise financing costs and increase refinancing risks for E&P companies. The drop in oil prices has caused a fundamental change in the energy industry, and its ability to generate cash flow has fallen substantially. Moody's believes this condition looks likely to persist for several years. As a result, Moody's is recalibrating the ratings of many energy companies to reflect this industry shift. However, the impact of the drop in oil prices will vary substantially from issuer to issuer. As a result, Moody's downgraded the current ratings of one company by multiple notches, while upgrading others. Clayton Williams Energy, Inc. Moody's downgraded Clayton Williams Energy, Inc.'s Corporate Family Rating to Caa3 from B3, with a stable outlook. The downgrade reflects the company's poor cash margins, high leverage and very weak cash flow based metrics due to the subdued commodity price outlook and lack of meaningful cash flow from hedges through 2017. The company's leverage metrics are expected to worsen materially and negative cash flow generation is likely to continue through at least 2017. CWEI's small scale and high debt balances exacerbate its weak credit profile. The company's ratings are supported by an oil-focused asset base and adequate liquidity due to higher cash balances from the recent issuance of a second lien term loan. The stable outlook reflects CWEI's adequate liquidity at a time of low oil prices. The company's ratings could be downgraded if liquidity drops below $100 million or retained cash flow remains negative. The ratings could be upgraded if CWEI's EBITDA to Interest Expense exceeds 1.5x on a sustained basis and the company maintains adequate liquidity with enough cushion under its covenants. CrownRock, L.P. Moody's upgraded CrownRock, L.P.'s Corporate Family Rating to B2 from B3, with a stable outlook. The upgrade reflects the company's improving scale and credit metrics amid better EBITDA despite the fall in commodity prices. The B2 CFR reflects CrownRock's modest but improved scale, large percentage of oil production, good margins given a generally favorable hedging profile, and management's track record of growing reserves and production in the Permian Basin. The company's vertical drilling activities in the Permian, a well-known, long-lived oil field, entail lower operating risk as compared to similarly rated peers. CrownRock has a high concentration in the Permian, accounting for nearly all its proved reserves and its PV-10 value. CrownRock's B2 CFR also considers its somewhat high leverage, especially debt to average daily production at $32,000/boe and private equity ownership. Moody's expects an improvement in leverage as CrownRock continues to grow its scale. The stable outlook considers the company's ability to improve its scale and leverage metrics from its drilling program for its Wolfberry acreage. The rating could be upgraded if production were to reach 45,000 boe/d and retained cash flow to debt is likely to remain above 25%. The rating could be downgraded to B3 if retained cash flow to debt falls below 15%, EBITDA to interest falls below 3x, or if liquidity worsens. Parsley Energy LLC Moody's upgraded Parsley Energy, LLC's (Parsley) Corporate Family Rating (CFR) to B2 from B3, with a stable outlook. The upgrade reflects the company's strong execution on its growth capital spending, rising EBITDA despite the fall in commodity prices, and improving credit metrics which have been helped by equity issuances. The B2 CFR reflects its relatively modest scale and concentrated geographic presence. The rating also incorporates the impact of the low crude oil price environment, which is mitigated somewhat by Parsley's hedges for 2016 and 2017. The CFR is supported by quality acreage in the Permian Basin, liquids-rich production that generates good cash margins, multiple year drilling inventory, and a high degree (99%) of operational control over its leasehold acreage, which allows for flexible capital allocation and development of its acreage in light of crude price volatility. The stable outlook reflects our expectation that production will be sustained at or above 30,000 boe/d in 2016 and cash flow metrics will remain strong. The rating could be upgraded to B1 if production were to reach 40,000 boe/d, retained cash flow to debt is likely to remain above 20%, and the company approaches cash flow neutrality after considering capex. The rating could be downgraded to B3 if retained cash flow to debt falls below 10%, EBITDA to interest falls below 2.5x, or if liquidity worsens. The principal methodology used in these ratings was Global Oilfield Services Industry Rating Methodology published in December 2014. Issuer: Clayton Williams Energy, Inc. Downgrades: Probability of Default Rating, Downgraded to Caa3-PD from B3-PD Corporate Family Rating, Downgraded to Caa3 from B3 Senior Unsecured Regular Bond/Debenture, Downgraded to Ca (LGD 5) from Caa1 (LGD 5) Affirmations: Speculative Grade Liquidity Rating, Affirmed SGL-3 Outlook Actions: Issuer: Clayton Williams Energy, Inc. Outlook, Changed To Stable From Rating Under Review Issuer: CrownRock, L.P. Upgrades: Probability of Default Rating, Upgraded to B2-PD from B3-PD Corporate Family Rating, Upgraded to B2 from B3 Senior Unsecured Regular Bond/Debentures, Upgraded to B3 (LGD 4) from Caa1 (LGD 4) Outlook Actions: Issuer: CrownRock, L.P. Outlook, Changed To Stable From Rating Under Review Downgrades: Upgrades: Issuer: Parsley Energy LLC Probability of Default Rating, Upgraded to B2-PD from B3-PD Corporate Family Rating, Upgraded to B2 from B3 Senior Unsecured Regular Bond/Debenture (Local Currency) Feb. 15, 2022, Upgraded to B3 (LGD5) from Caa1 (LGD5) Outlook Actions: Issuer: Parsley Energy LLC Outlook, Changed To Stable From Rating Under Review Affirmations: Issuer: Parsley Energy LLC Speculative Grade Liquidity Rating, Affirmed SGL-3 [*] Shinjiro Takagi Joins Morgan Lewis' Tokyo Office as Of Counsel ------------------------------------------------------------------ Further enhancing the firm's capabilities in Asia, Morgan Lewis on April 1 disclosed that Shinjiro Takagi -- a leading international bankruptcy lawyer and former judge in Japan as well as a former Nomura Securities adviser -- has joined the firm as of counsel in Tokyo. "We are very pleased to welcome Judge Takagi to our global team as we continue our strategic growth in Asia," said Firm Chair Jami McKeon. "His distinguished background in the areas of insolvency and business revitalization in Japan, combined with his service on the bench, further strengthens our ability to serve the increasingly complex business and litigation needs of our clients in the region." Recognized in Japan for his leadership in some of the country's most high-profile corporate restructurings, Judge Takagi served as the chair of the Industrial Revitalization Corporation of Japan (IRCJ) between 2003 and 2007. At the time, the IRCJ was the world's largest government-sponsored private equity fund specializing in recapitalization and turnaround investments in distressed companies through the purchase of more than JPY100 billion (approximately $1 billion) worth of bad debt and about JPY10 trillion ($100 billion) in loans to help Japan's banks regain their competitiveness. Judge Takagi also led the restructuring task force for Japan Airlines in 2009 and served as reorganization trustee for Kyoei Life Insurance Company in 2000. A former judge for the Tokyo High Court (court of appeals), Judge Takagi has also been active in Southeast Asia as adviser to the Asian Bankers Association and as president of the East Asian Association of Insolvency and Restructuring. Formerly a lecturer and professor of law at several universities in Japan, Judge Takagi has written numerous articles and publications on bankruptcy, reorganization, litigation, and other related issues. He received the Outstanding Service and Contribution to International Insolvency Award from the International Insolvency Institute in 2005 and was also bestowed the Order of the Rising Sun, Gold, and Silver Star by Japan's Emperor in 2007. "Judge Takagi is one of the foremost authorities on insolvency and restructuring law in Japan," said Tsugu Watanabe, managing partner of Morgan Lewis's Tokyo office. "His background and experience dovetail perfectly with our Tokyo team's focus on complex cross-border transactions, asset management regulation, and disputes." About Morgan, Lewis & Bockius LLP Founded in 1873, Morgan Lewis -- http://www.morganlewis.com-- offers more than 2,000 lawyers, patent agents, benefits advisers, regulatory scientists, and other specialists-in 28 offices across North America, Europe, Asia, and the Middle East. The firm provides comprehensive litigation, corporate, transactional, regulatory, intellectual property, and labor and employment legal services to clients of all sizes-from globally established industry leaders to just-conceived start-ups. [^] Large Companies with Insolvent Balance Sheet ------------------------------------------------ Total Share- Total Total Holders' Working Assets Equity Capital Company Ticker ($MM) ($MM) ($MM) ------- ------ ------ -------- ------- ABSOLUTE SOFTWRE ABT2EUR EU 108.3 (42.6) (41.9) ABSOLUTE SOFTWRE ABT CN 108.3 (42.6) (41.9) ABSOLUTE SOFTWRE ALSWF US 108.3 (42.6) (41.9) ABSOLUTE SOFTWRE OU1 GR 108.3 (42.6) (41.9) ADV MICRO DEVICE AMD* MM 3,109.0 (412.0) 917.0 ADVENT SOFTWARE ADVS US 424.8 (50.1) (110.8) AEROJET ROCKETDY AJRD US 2,034.9 (145.5) 108.5 AEROJET ROCKETDY GCY GR 2,034.9 (145.5) 108.5 AEROJET ROCKETDY GCY TH 2,034.9 (145.5) 108.5 AK STEEL HLDG AKS US 4,084.4 (595.6) 763.6 AK STEEL HLDG AK2 TH 4,084.4 (595.6) 763.6 AK STEEL HLDG AK2 GR 4,084.4 (595.6) 763.6 AK STEEL HLDG AKS* MM 4,084.4 (595.6) 763.6 AMYLIN PHARMACEU AMLN US 1,998.7 (42.4) 263.0 ANGIE'S LIST INC ANGI US 174.9 (2.4) (21.3) ANGIE'S LIST INC 8AL GR 174.9 (2.4) (21.3) ANGIE'S LIST INC 8AL TH 174.9 (2.4) (21.3) ARCH COAL INC ACIIQ* MM 5,106.7 (1,244.3) (4,361.0) ARGOS THERAPEUTI ARGS US 31.1 (28.2) 0.7 ARIAD PHARM ARIACHF EU 546.7 (103.1) 142.9 ARIAD PHARM ARIA SW 546.7 (103.1) 142.9 ARIAD PHARM ARIA US 546.7 (103.1) 142.9 ARIAD PHARM APS GR 546.7 (103.1) 142.9 ARIAD PHARM ARIAEUR EU 546.7 (103.1) 142.9 ARIAD PHARM APS TH 546.7 (103.1) 142.9 ASPEN TECHNOLOGY AZPN US 276.4 (22.2) (4.4) ASPEN TECHNOLOGY AST GR 276.4 (22.2) (4.4) AUTOZONE INC AZ5 QT 8,366.4 (1,741.3) (784.8) AUTOZONE INC AZOEUR EU 8,366.4 (1,741.3) (784.8) AUTOZONE INC AZ5 TH 8,366.4 (1,741.3) (784.8) AUTOZONE INC AZ5 GR 8,366.4 (1,741.3) (784.8) AUTOZONE INC AZO US 8,366.4 (1,741.3) (784.8) AVID TECHNOLOGY AVID US 247.9 (329.6) (167.5) AVID TECHNOLOGY AVD GR 247.9 (329.6) (167.5) AVINTIV SPECIALT POLGA US 1,991.4 (3.9) 322.1 AVON - BDR AVON34 BZ 3,879.5 (1,056.4) 146.0 AVON PRODUCTS AVP TH 3,879.5 (1,056.4) 146.0 AVON PRODUCTS AVP CI 3,879.5 (1,056.4) 146.0 AVON PRODUCTS AVP* MM 3,879.5 (1,056.4) 146.0 AVON PRODUCTS AVP GR 3,879.5 (1,056.4) 146.0 AVON PRODUCTS AVP US 3,879.5 (1,056.4) 146.0 AVON PRODUCTS AVP QT 3,879.5 (1,056.4) 146.0 BARRACUDA NETWOR 7BM QT 429.9 (30.5) (27.7) BARRACUDA NETWOR 7BM GR 429.9 (30.5) (27.7) BARRACUDA NETWOR CUDA US 429.9 (30.5) (27.7) BARRACUDA NETWOR CUDAEUR EU 429.9 (30.5) (27.7) BENEFITFOCUS INC BNFT US 182.1 (18.0) 18.4 BENEFITFOCUS INC BTF GR 182.1 (18.0) 18.4 BERRY PLASTICS G BP0 GR 7,710.0 (67.0) 646.0 BERRY PLASTICS G BERY US 7,710.0 (67.0) 646.0 BLUE BIRD CORP 1291067D US 251.0 (121.5) 1.5 BLUE BIRD CORP BLBD US 251.0 (121.5) 1.5 BOMBARDIER INC-B BBDBN MM 22,903.0 (4,054.0) 282.0 BOMBARDIER-B OLD BBDYB BB 22,903.0 (4,054.0) 282.0 BOMBARDIER-B W/I BBD/W CN 22,903.0 (4,054.0) 282.0 BRINKER INTL BKJ GR 1,579.9 (164.9) (195.1) BRINKER INTL EAT US 1,579.9 (164.9) (195.1) BRP INC/CA-SUB V BRPIF US 2,445.2 (14.1) 363.3 BRP INC/CA-SUB V B15A GR 2,445.2 (14.1) 363.3 BRP INC/CA-SUB V DOO CN 2,445.2 (14.1) 363.3 BUFFALO COAL COR BUC SJ 54.9 (10.1) (4.5) BURLINGTON STORE BURL US 2,580.1 (99.0) 46.4 BURLINGTON STORE BUI GR 2,580.1 (99.0) 46.4 CABLEVISION SY-A CVY GR 6,867.3 (4,911.6) (313.1) CABLEVISION SY-A CVY TH 6,867.3 (4,911.6) (313.1) CABLEVISION SY-A CVC US 6,867.3 (4,911.6) (313.1) CABLEVISION SY-A CVCEUR EU 6,867.3 (4,911.6) (313.1) CABLEVISION-W/I 8441293Q US 6,867.3 (4,911.6) (313.1) CABLEVISION-W/I CVC-W US 6,867.3 (4,911.6) (313.1) CAMBIUM LEARNING ABCD US 141.4 (74.2) (54.9) CASELLA WASTE WA3 GR 649.9 (21.6) (8.7) CASELLA WASTE CWST US 649.9 (21.6) (8.7) CENTENNIAL COMM CYCL US 1,480.9 (925.9) (52.1) CHARTER COM-A CHTR US 39,316.0 (46.0) (1,627.0) CHARTER COM-A CKZA GR 39,316.0 (46.0) (1,627.0) CHARTER COM-A CKZA TH 39,316.0 (46.0) (1,627.0) CHOICE HOTELS CHH US 717.0 (395.9) 102.9 CHOICE HOTELS CZH GR 717.0 (395.9) 102.9 CINCINNATI BELL CBB US 1,454.4 (298.2) (58.8) CINCINNATI BELL CIB GR 1,454.4 (298.2) (58.8) CLEAR CHANNEL-A C7C GR 6,357.2 (569.7) 656.6 CLEAR CHANNEL-A CCO US 6,357.2 (569.7) 656.6 CLIFFS NATURAL R CLF* MM 2,135.5 (1,811.6) 401.0 COGENT COMMUNICA OGM1 GR 662.8 (12.3) 182.4 COGENT COMMUNICA CCOI US 662.8 (12.3) 182.4 COHERUS BIOSCIEN 8C5 TH 212.4 (6.9) 91.4 COHERUS BIOSCIEN CHRSEUR EU 212.4 (6.9) 91.4 COHERUS BIOSCIEN CHRS US 212.4 (6.9) 91.4 COHERUS BIOSCIEN 8C5 GR 212.4 (6.9) 91.4 COLGATE-BDR COLG34 BZ 11,958.0 (44.0) 850.0 COLGATE-PALMOLIV CPA GR 11,958.0 (44.0) 850.0 COLGATE-PALMOLIV CLEUR EU 11,958.0 (44.0) 850.0 COLGATE-PALMOLIV CPA TH 11,958.0 (44.0) 850.0 COLGATE-PALMOLIV CL* MM 11,958.0 (44.0) 850.0 COLGATE-PALMOLIV CLCHF EU 11,958.0 (44.0) 850.0 COLGATE-PALMOLIV CL SW 11,958.0 (44.0) 850.0 COLGATE-PALMOLIV CPA QT 11,958.0 (44.0) 850.0 COLGATE-PALMOLIV CL US 11,958.0 (44.0) 850.0 COMMUNICATION 8XC GR 2,542.6 (1,166.9) - COMMUNICATION CSAL US 2,542.6 (1,166.9) - CPI CARD GROUP I PNT CN 280.4 (86.6) 59.0 CPI CARD GROUP I CPB GR 280.4 (86.6) 59.0 CPI CARD GROUP I PMTS US 280.4 (86.6) 59.0 CYAN INC YCN GR 112.1 (18.4) 56.9 CYAN INC CYNI US 112.1 (18.4) 56.9 DELEK LOGISTICS D6L GR 375.3 (11.0) 26.4 DELEK LOGISTICS DKL US 375.3 (11.0) 26.4 DENNY'S CORP DE8 GR 297.0 (60.6) (65.1) DENNY'S CORP DENN US 297.0 (60.6) (65.1) DIRECTV DTVEUR EU 25,321.0 (3,463.0) 1,360.0 DIRECTV DTV CI 25,321.0 (3,463.0) 1,360.0 DIRECTV DTV US 25,321.0 (3,463.0) 1,360.0 DOMINO'S PIZZA DPZ US 799.8 (1,800.3) 226.7 DOMINO'S PIZZA EZV TH 799.8 (1,800.3) 226.7 DOMINO'S PIZZA EZV GR 799.8 (1,800.3) 226.7 DPL INC DPL US 3,340.8 (62.2) (453.8) DUN & BRADSTREET DB5 TH 2,273.6 (1,105.3) 0.4 DUN & BRADSTREET DNB US 2,273.6 (1,105.3) 0.4 DUN & BRADSTREET DB5 GR 2,273.6 (1,105.3) 0.4 DUN & BRADSTREET DNB1EUR EU 2,273.6 (1,105.3) 0.4 DUNKIN' BRANDS G DNKN US 3,197.1 (220.7) 139.0 DUNKIN' BRANDS G 2DB GR 3,197.1 (220.7) 139.0 DUNKIN' BRANDS G 2DB TH 3,197.1 (220.7) 139.0 DURATA THERAPEUT DRTXEUR EU 82.1 (16.1) 11.7 DURATA THERAPEUT DTA GR 82.1 (16.1) 11.7 DURATA THERAPEUT DRTX US 82.1 (16.1) 11.7 EDGEN GROUP INC EDG US 883.8 (0.8) 409.2 EMPIRE RESORTS I LHC1 GR 65.4 (1.5) (6.7) EMPIRE RESORTS I NYNY US 65.4 (1.5) (6.7) ENERGIZER HOLDIN EGG GR 1,617.5 (32.5) 639.3 ENERGIZER HOLDIN ENR-WEUR EU 1,617.5 (32.5) 639.3 ENERGIZER HOLDIN ENR US 1,617.5 (32.5) 639.3 EOS PETRO INC EOPT US 1.2 (27.9) (29.0) EPL OIL & GAS IN EPL US 563.6 (933.3) (308.4) EPL OIL & GAS IN EPA1 GR 563.6 (933.3) (308.4) ERIN ENERGY CORP ERN SJ 376.2 (105.8) (314.8) EXELIXIS INC EX9 TH 332.3 (104.3) 126.4 EXELIXIS INC EXELEUR EU 332.3 (104.3) 126.4 EXELIXIS INC EXEL US 332.3 (104.3) 126.4 EXELIXIS INC EX9 GR 332.3 (104.3) 126.4 FAIRPOINT COMMUN FONN GR 1,322.5 (1.5) (4.1) FAIRPOINT COMMUN FRP US 1,322.5 (1.5) (4.1) FREESCALE SEMICO 1FS GR 3,159.0 (3,079.0) 1,264.0 FREESCALE SEMICO FSLEUR EU 3,159.0 (3,079.0) 1,264.0 FREESCALE SEMICO 1FS TH 3,159.0 (3,079.0) 1,264.0 FREESCALE SEMICO FSL US 3,159.0 (3,079.0) 1,264.0 FREESCALE SEMICO 1FS QT 3,159.0 (3,079.0) 1,264.0 GAMCO INVESTO-A GBL US 104.0 (276.3) - GAMING AND LEISU GLPI US 2,448.2 (253.5) (83.7) GAMING AND LEISU 2GL GR 2,448.2 (253.5) (83.7) GARDA WRLD -CL A GW CN 1,828.2 (378.3) 124.2 GARTNER INC IT US 2,174.7 (132.4) (182.5) GARTNER INC GGRA GR 2,174.7 (132.4) (182.5) GENTIVA HEALTH GHT GR 1,225.2 (285.2) 130.0 GENTIVA HEALTH GTIV US 1,225.2 (285.2) 130.0 GLG PARTNERS INC GLG US 400.0 (285.6) 156.9 GLG PARTNERS-UTS GLG/U US 400.0 (285.6) 156.9 GOLD RESERVE INC GDRZF US 15.0 (32.3) (42.5) GOLD RESERVE INC GRZ CN 15.0 (32.3) (42.5) GOLD RESERVE INC GOD GR 15.0 (32.3) (42.5) GRAHAM PACKAGING GRM US 2,947.5 (520.8) 298.5 GYMBOREE CORP/TH GYMB US 1,242.0 (386.5) 30.8 H&R BLOCK INC HRB US 2,874.0 (536.7) 631.6 H&R BLOCK INC HRB TH 2,874.0 (536.7) 631.6 H&R BLOCK INC HRB GR 2,874.0 (536.7) 631.6 H&R BLOCK INC HRBEUR EU 2,874.0 (536.7) 631.6 HCA HOLDINGS INC 2BH TH 32,744.0 (6,046.0) 3,716.0 HCA HOLDINGS INC HCA US 32,744.0 (6,046.0) 3,716.0 HCA HOLDINGS INC HCAEUR EU 32,744.0 (6,046.0) 3,716.0 HCA HOLDINGS INC 2BH GR 32,744.0 (6,046.0) 3,716.0 HECKMANN CORP-U HEK/U US 531.3 (38.3) (461.5) HERBALIFE LTD HLF US 2,477.9 (53.5) 541.9 HERBALIFE LTD HLFEUR EU 2,477.9 (53.5) 541.9 HERBALIFE LTD HOO GR 2,477.9 (53.5) 541.9 HEWLETT-PACKA-WI HPQ-W US 25,517.0 (4,909.0) (1,606.0) HOVNANIAN-A-WI HOV-W US 2,552.7 (143.1) 1,501.0 HP COMPANY-BDR HPQB34 BZ 25,517.0 (4,909.0) (1,606.0) HP INC HPQ* MM 25,517.0 (4,909.0) (1,606.0) HP INC HPQCHF EU 25,517.0 (4,909.0) (1,606.0) HP INC 7HP GR 25,517.0 (4,909.0) (1,606.0) HP INC HPQ CI 25,517.0 (4,909.0) (1,606.0) HP INC HPQ TE 25,517.0 (4,909.0) (1,606.0) HP INC 7HP TH 25,517.0 (4,909.0) (1,606.0) HP INC HPQ SW 25,517.0 (4,909.0) (1,606.0) HP INC HPQ US 25,517.0 (4,909.0) (1,606.0) HP INC HWP QT 25,517.0 (4,909.0) (1,606.0) HUGHES TELEMATIC HUTCU US 110.2 (101.6) (113.8) IDEXX LABS IX1 GR 1,475.0 (84.0) (35.1) IDEXX LABS IDXX US 1,475.0 (84.0) (35.1) IDEXX LABS IX1 TH 1,475.0 (84.0) (35.1) IMMUNOGEN INC IMU GR 251.6 (16.7) 179.3 IMMUNOGEN INC IMGN US 251.6 (16.7) 179.3 IMMUNOGEN INC IMU TH 251.6 (16.7) 179.3 INFOR US INC LWSN US 6,778.1 (460.0) (305.9) INNOVIVA INC INVA US 424.1 (342.6) 200.8 INNOVIVA INC HVE GR 424.1 (342.6) 200.8 INTERNATIONAL WI ITWG US 325.1 (11.5) 95.4 INVENTIV HEALTH VTIV US 2,152.7 (771.1) 124.3 IONIX TECHNOLOGY IINX US 0.0 (0.0) (0.0) IPCS INC IPCS US 559.2 (33.0) 72.1 ISRAMCO INC ISRLEUR EU 147.0 (2.9) 13.0 ISRAMCO INC IRM GR 147.0 (2.9) 13.0 ISRAMCO INC ISRL US 147.0 (2.9) 13.0 ISTA PHARMACEUTI ISTA US 124.7 (64.8) 2.2 J CREW GROUP INC JCG US 1,516.3 (769.0) 91.7 JACK IN THE BOX JACK US 1,273.0 (60.1) (103.2) JACK IN THE BOX JACK1EUR EU 1,273.0 (60.1) (103.2) JACK IN THE BOX JBX GR 1,273.0 (60.1) (103.2) JUST ENERGY GROU 1JE GR 1,274.3 (673.6) (97.6) JUST ENERGY GROU JE US 1,274.3 (673.6) (97.6) JUST ENERGY GROU JE CN 1,274.3 (673.6) (97.6) KEMPHARM INC 1GD GR 55.7 (10.1) 45.7 KEMPHARM INC KMPH US 55.7 (10.1) 45.7 KOPPERS HOLDINGS KO9 GR 1,125.4 (12.4) 163.8 KOPPERS HOLDINGS KOP US 1,125.4 (12.4) 163.8 L BRANDS INC LTD TH 8,493.0 (258.0) 2,281.0 L BRANDS INC LTD GR 8,493.0 (258.0) 2,281.0 L BRANDS INC LBEUR EU 8,493.0 (258.0) 2,281.0 L BRANDS INC LTD QT 8,493.0 (258.0) 2,281.0 L BRANDS INC LB* MM 8,493.0 (258.0) 2,281.0 L BRANDS INC LB US 8,493.0 (258.0) 2,281.0 LEAP WIRELESS LEAP US 4,662.9 (125.1) 346.9 LEAP WIRELESS LWI GR 4,662.9 (125.1) 346.9 LEAP WIRELESS LWI TH 4,662.9 (125.1) 346.9 LORILLARD INC LLV GR 4,154.0 (2,134.0) 1,135.0 LORILLARD INC LLV TH 4,154.0 (2,134.0) 1,135.0 LORILLARD INC LO US 4,154.0 (2,134.0) 1,135.0 MADISON-A/NEW-WI MSGN-W US 911.0 (1,213.9) 103.4 MAJESCOR RESOURC MJXEUR EU 0.0 (0.1) (0.1) MALIBU BOATS-A M05 GR 199.9 (1.4) 13.7 MALIBU BOATS-A MBUU US 199.9 (1.4) 13.7 MANNKIND CORP MNKD IT 126.4 (350.3) (191.7) MARRIOTT INTL-A MAQ TH 6,082.0 (3,590.0) (1,849.0) MARRIOTT INTL-A MAQ GR 6,082.0 (3,590.0) (1,849.0) MARRIOTT INTL-A MAQ QT 6,082.0 (3,590.0) (1,849.0) MARRIOTT INTL-A MAR US 6,082.0 (3,590.0) (1,849.0) MDC COMM-W/I MDZ/W CN 1,590.2 (417.6) (403.9) MDC PARTNERS-A MDCA US 1,590.2 (417.6) (403.9) MDC PARTNERS-A MD7A GR 1,590.2 (417.6) (403.9) MDC PARTNERS-A MDZ/A CN 1,590.2 (417.6) (403.9) MDC PARTNERS-EXC MDZ/N CN 1,590.2 (417.6) (403.9) MEAD JOHNSON MJN US 3,998.1 (592.5) 1,349.1 MEAD JOHNSON MJNEUR EU 3,998.1 (592.5) 1,349.1 MEAD JOHNSON 0MJA TH 3,998.1 (592.5) 1,349.1 MEAD JOHNSON 0MJA GR 3,998.1 (592.5) 1,349.1 MEDLEY MANAGE-A MDLY US 121.5 (17.7) 53.8 MERITOR INC AID1 GR 2,050.0 (653.0) 118.0 MERITOR INC MTOR US 2,050.0 (653.0) 118.0 MERRIMACK PHARMA MACK US 234.9 (183.7) 97.6 MERRIMACK PHARMA MP6 GR 234.9 (183.7) 97.6 MICHAELS COS INC MIM GR 2,023.3 (1,724.1) 594.9 MICHAELS COS INC MIK US 2,023.3 (1,724.1) 594.9 MIDSTATES PETROL MPO1EUR EU 679.2 (1,326.1) (1,838.8) MONEYGRAM INTERN 9M1N QT 4,505.2 (222.8) (19.0) MONEYGRAM INTERN MGI US 4,505.2 (222.8) (19.0) MOODY'S CORP MCO US 5,123.4 (333.0) 2,024.6 MOODY'S CORP DUT TH 5,123.4 (333.0) 2,024.6 MOODY'S CORP MCOEUR EU 5,123.4 (333.0) 2,024.6 MOODY'S CORP DUT GR 5,123.4 (333.0) 2,024.6 MOTOROLA SOLUTIO MSI US 8,387.0 (96.0) 2,389.0 MOTOROLA SOLUTIO MOT TE 8,387.0 (96.0) 2,389.0 MOTOROLA SOLUTIO MTLA GR 8,387.0 (96.0) 2,389.0 MOTOROLA SOLUTIO MTLA TH 8,387.0 (96.0) 2,389.0 MOTOROLA SOLUTIO MTLA QT 8,387.0 (96.0) 2,389.0 MPG OFFICE TRUST 1052394D US 1,280.0 (437.3) - MSG NETWORKS- A 1M4 GR 911.0 (1,213.9) 103.4 MSG NETWORKS- A 1M4 TH 911.0 (1,213.9) 103.4 MSG NETWORKS- A MSGN US 911.0 (1,213.9) 103.4 NATHANS FAMOUS NFA GR 81.0 (65.2) 57.4 NATHANS FAMOUS NATH US 81.0 (65.2) 57.4 NATIONAL CINEMED NCMI US 1,084.3 (171.7) 84.6 NATIONAL CINEMED XWM GR 1,084.3 (171.7) 84.6 NAVIDEA BIOPHARM NAVB IT 15.0 (53.8) 6.4 NAVISTAR INTL NAV US 5,980.0 (5,190.0) 139.0 NAVISTAR INTL IHR GR 5,980.0 (5,190.0) 139.0 NAVISTAR INTL IHR TH 5,980.0 (5,190.0) 139.0 NEFF CORP-CL A NEFF US 653.7 (165.8) 22.0 NEW ENG RLTY-LP NEN US 202.2 (30.8) - NORTHERN OIL AND NOG US 733.9 (197.6) 50.7 NORTHERN OIL AND 4LT GR 733.9 (197.6) 50.7 NTELOS HOLDINGS NTLS US 643.0 (39.0) 106.7 OMEROS CORP OMER US 49.0 (26.2) 20.9 OMEROS CORP 3O8 TH 49.0 (26.2) 20.9 OMEROS CORP 3O8 GR 49.0 (26.2) 20.9 OMEROS CORP OMEREUR EU 49.0 (26.2) 20.9 OMTHERA PHARMACE OMTH US 18.3 (8.5) (12.0) OUTERWALL INC OUTR US 1,366.1 (22.1) 43.2 OUTERWALL INC CS5 GR 1,366.1 (22.1) 43.2 PALM INC PALM US 1,007.2 (6.2) 141.7 PBF LOGISTICS LP PBFX US 422.9 (185.7) 34.2 PBF LOGISTICS LP 11P GR 422.9 (185.7) 34.2 PENN NATL GAMING PENN US 5,138.8 (678.0) (185.3) PENN NATL GAMING PN1 GR 5,138.8 (678.0) (185.3) PHILIP MORRIS IN PMI EB 33,956.0 (11,476.0) 418.0 PHILIP MORRIS IN PMI1 IX 33,956.0 (11,476.0) 418.0 PHILIP MORRIS IN PM1EUR EU 33,956.0 (11,476.0) 418.0 PHILIP MORRIS IN PM1CHF EU 33,956.0 (11,476.0) 418.0 PHILIP MORRIS IN 4I1 QT 33,956.0 (11,476.0) 418.0 PHILIP MORRIS IN 4I1 TH 33,956.0 (11,476.0) 418.0 PHILIP MORRIS IN PM US 33,956.0 (11,476.0) 418.0 PHILIP MORRIS IN PM1 TE 33,956.0 (11,476.0) 418.0 PHILIP MORRIS IN PM FP 33,956.0 (11,476.0) 418.0 PHILIP MORRIS IN PMI SW 33,956.0 (11,476.0) 418.0 PHILIP MORRIS IN 4I1 GR 33,956.0 (11,476.0) 418.0 PLANET FITNESS-A PLNT US 699.2 (1.1) 6.7 PLANET FITNESS-A 3PL TH 699.2 (1.1) 6.7 PLANET FITNESS-A 3PL GR 699.2 (1.1) 6.7 PLAYBOY ENTERP-A PLA/A US 165.8 (54.4) (16.9) PLAYBOY ENTERP-B PLA US 165.8 (54.4) (16.9) PLY GEM HOLDINGS PGEM US 1,285.9 (76.8) 256.1 PLY GEM HOLDINGS PG6 GR 1,285.9 (76.8) 256.1 POLYMER GROUP-B POLGB US 1,991.4 (3.9) 322.1 PROTECTION ONE PONE US 562.9 (61.8) (7.6) PURETECH HEALTH PRTCL IX - - - PURETECH HEALTH PRTC LN - - - PURETECH HEALTH PRTCGBX EU - - - PURETECH HEALTH PRTCL EB - - - QUALITY DISTRIBU QDZ GR 413.0 (22.9) 102.9 QUALITY DISTRIBU QLTY US 413.0 (22.9) 102.9 QUINTILES TRANSN Q US 3,926.3 (335.7) 817.8 QUINTILES TRANSN QTS GR 3,926.3 (335.7) 817.8 RAYONIER ADV RYQ GR 1,288.5 (17.1) 196.3 RAYONIER ADV RYAM US 1,288.5 (17.1) 196.3 REGAL ENTERTAI-A RGC* MM 2,632.3 (877.6) (113.1) REGAL ENTERTAI-A RETA GR 2,632.3 (877.6) (113.1) REGAL ENTERTAI-A RGC US 2,632.3 (877.6) (113.1) RENAISSANCE LEA RLRN US 57.0 (28.2) (31.4) RENTECH NITROGEN 2RN GR 241.4 (166.3) 12.0 RENTECH NITROGEN RNF US 241.4 (166.3) 12.0 RENTPATH LLC PRM US 208.0 (91.7) 3.6 REVLON INC-A RVL1 GR 2,014.3 (587.5) 351.9 REVLON INC-A REV US 2,014.3 (587.5) 351.9 ROUNDY'S INC 4R1 GR 1,095.7 (92.7) 59.7 ROUNDY'S INC RNDY US 1,095.7 (92.7) 59.7 RURAL/METRO CORP RURL US 303.7 (92.1) 72.4 RYERSON HOLDING RYI US 1,556.2 (140.8) 643.0 RYERSON HOLDING 7RY GR 1,556.2 (140.8) 643.0 SALLY BEAUTY HOL SBH US 2,043.1 (321.7) 674.9 SALLY BEAUTY HOL S7V GR 2,043.1 (321.7) 674.9 SANCHEZ ENERGY C 13S GR 1,542.3 (456.2) 499.1 SANCHEZ ENERGY C SN* MM 1,542.3 (456.2) 499.1 SANCHEZ ENERGY C 13S TH 1,542.3 (456.2) 499.1 SANCHEZ ENERGY C SN US 1,542.3 (456.2) 499.1 SBA COMM CORP-A SBAC US 7,403.2 (1,706.1) 20.6 SBA COMM CORP-A SBJ TH 7,403.2 (1,706.1) 20.6 SBA COMM CORP-A SBJ GR 7,403.2 (1,706.1) 20.6 SBA COMM CORP-A SBACEUR EU 7,403.2 (1,706.1) 20.6 SCIENTIFIC GAM-A TJW GR 7,732.2 (1,495.5) 521.6 SCIENTIFIC GAM-A SGMS US 7,732.2 (1,495.5) 521.6 SEARS HOLDINGS SEE TH 11,337.0 (1,956.0) 607.0 SEARS HOLDINGS SEE GR 11,337.0 (1,956.0) 607.0 SEARS HOLDINGS SEE QT 11,337.0 (1,956.0) 607.0 SEARS HOLDINGS SHLD US 11,337.0 (1,956.0) 607.0 SENSEONICS HLDGS SENS US 5.5 (9.7) (2.4) SILVER SPRING NE SSNI US 457.7 (33.9) 5.7 SILVER SPRING NE 9SI TH 457.7 (33.9) 5.7 SILVER SPRING NE 9SI GR 457.7 (33.9) 5.7 SIRIUS XM CANADA SIICF US 311.1 (147.2) (189.0) SIRIUS XM CANADA XSR CN 311.1 (147.2) (189.0) SIRIUS XM HOLDIN RDO TH 8,046.7 (166.5) (1,934.6) SIRIUS XM HOLDIN SIRI US 8,046.7 (166.5) (1,934.6) SIRIUS XM HOLDIN RDO GR 8,046.7 (166.5) (1,934.6) SONIC CORP SO4 GR 606.7 (33.2) 15.5 SONIC CORP SONC US 606.7 (33.2) 15.5 SONIC CORP SONCEUR EU 606.7 (33.2) 15.5 SPORTSMAN'S WARE 06S GR 303.0 (2.1) 104.8 SPORTSMAN'S WARE SPWH US 303.0 (2.1) 104.8 SUPERVALU INC SVU US 4,643.0 (444.0) 81.0 SUPERVALU INC SJ1 TH 4,643.0 (444.0) 81.0 SUPERVALU INC SJ1 GR 4,643.0 (444.0) 81.0 SYNDAX PHARMACEU 1T3 GR 12.8 (5.7) 2.1 SYNDAX PHARMACEU SNDX US 12.8 (5.7) 2.1 TAILORED BRANDS TLRD US 2,244.3 (100.1) 723.6 TRANSDIGM GROUP TDG US 8,330.0 (964.3) 1,204.3 TRANSDIGM GROUP TDGEUR EU 8,330.0 (964.3) 1,204.3 TRANSDIGM GROUP T7D GR 8,330.0 (964.3) 1,204.3 TRANSDIGM GROUP TDGCHF EU 8,330.0 (964.3) 1,204.3 TRANSDIGM GROUP TDG SW 8,330.0 (964.3) 1,204.3 TRIBUNE PUBLISHI TPUB US 833.0 (14.4) (1.3) TRINITY PLACE HO TPHS US 56.3 (3.3) - UNISYS CORP UISCHF EU 2,143.2 (1,378.6) 165.2 UNISYS CORP UIS1 SW 2,143.2 (1,378.6) 165.2 UNISYS CORP UIS US 2,143.2 (1,378.6) 165.2 UNISYS CORP USY1 TH 2,143.2 (1,378.6) 165.2 UNISYS CORP UISEUR EU 2,143.2 (1,378.6) 165.2 UNISYS CORP USY1 GR 2,143.2 (1,378.6) 165.2 VECTOR GROUP LTD VGR US 1,310.8 (122.2) 367.4 VECTOR GROUP LTD VGR GR 1,310.8 (122.2) 367.4 VENOCO INC VQ US 403.8 (354.3) 195.7 VERISIGN INC VRS TH 2,357.7 (1,070.4) 464.9 VERISIGN INC VRS GR 2,357.7 (1,070.4) 464.9 VERISIGN INC VRSN US 2,357.7 (1,070.4) 464.9 VERIZON TELEMATI HUTC US 110.2 (101.6) (113.8) VIRGIN MOBILE-A VM US 307.4 (244.2) (138.3) WEIGHT WATCHERS WW6 GR 1,422.1 (1,285.7) (144.2) WEIGHT WATCHERS WTWEUR EU 1,422.1 (1,285.7) (144.2) WEIGHT WATCHERS WW6 TH 1,422.1 (1,285.7) (144.2) WEIGHT WATCHERS WTW US 1,422.1 (1,285.7) (144.2) WEST CORP WSTC US 3,612.3 (552.1) 243.1 WEST CORP WT2 GR 3,612.3 (552.1) 243.1 WESTERN REFINING WNRL US 501.0 (68.4) 36.7 WESTERN REFINING WR2 GR 501.0 (68.4) 36.7 WINGSTOP INC WING US 121.1 (9.7) 7.1 WINGSTOP INC EWG GR 121.1 (9.7) 7.1 WINMARK CORP WINA US 47.4 (30.7) 16.9 WINMARK CORP GBZ GR 47.4 (30.7) 16.9 WORKHORSE GROUP 1WO GR 5.2 (1.5) (5.3) WORKHORSE GROUP WKHS US 5.2 (1.5) (5.3) YRC WORLDWIDE IN YRCWEUR EU 1,894.6 (379.4) 160.9 YRC WORLDWIDE IN YEL1 GR 1,894.6 (379.4) 160.9 YRC WORLDWIDE IN YEL1 TH 1,894.6 (379.4) 160.9 YRC WORLDWIDE IN YRCW US 1,894.6 (379.4) 160.9 ********* 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 ***