/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/160526.mbx T R O U B L E D C O M P A N Y R E P O R T E R Thursday, May 26, 2016, Vol. 20, No. 147 Headlines 1103 33RD STREET: Authorized to Sell Chapel Property 2013 COLONIAL: Case Summary & 11 Unsecured Creditors 2747 CAMELBACK: Hires Munsch Hardt as General Bankruptcy Counsel 3920 PARK AVENUE: Taps Zimmel Associates as Realtor 5 STAR INVESTMENT: Hires BGBC Partners as Accountant 99 CENTS ONLY: S&P Cuts CCR to CCC+ on Challenged Capital Structure ACTIVECARE INC: Incurs $15.5 Million Net Loss in 2nd Quarter ALBERTSONS COMPANIES: Moody's Rates New $1.5BB Term Loan Ba2 ALLIED FINANCIAL: Notifies Secured Creditor of Proposed Sale ALPHA NATURAL: Can Terminate UMWA CBAs, Modify Retiree Benefits ALPHA NATURAL: Hearing Today on Sale of PLR Assets to Vantage ALPHA NATURAL: Sale Hearing for Core Assets Adjourned Sine Die AMERICAN PARKING: Hires WRG Certified Public Accountants AOG ENTERTAINMENT: Inks Restructuring Support Deal with Lenders APRICUS BIOSCIENCES: Stockholders Elect 2 Directors ARES CAPITAL: Moody's Affirms Ba1 CFR & Changes Outlook to Neg. ARMADA WATER: Files for Chapter 11 Bankruptcy to Reorganize ASHLEY I LLC: Hires Cedarview Projects as Environmental Manager ASPECT SOFTWARE: Schedules $88.1M in Assets, $825.5M in Debt ATLANTIC & PACIFIC: Hires PwC LLP as Tax Consultants B & B REAL ESTATE: Taps Philip W. Stock as Bankruptcy Counsel BACK9NETWORK INC: Seeks June 30 Extension of DIP Maturity Date BASIC ENERGY: Stockholders Elect 3 Class III Directors BEAR CREEK: Files List of Largest Unsecured Creditors BILL BARRETT: Stockholders Elect Six Directors BIOLIFE SOLUTIONS: Walter Villiger Reports 40.1% Stake as of May 19 BONANZA CREEK: Has Borrowing Base Deficiency of $88 Million BRIDGEWERKS CONSTRUCTION: Hires Gary W. Short as Attorney BUDD CO: Court Substantially Reduces Proskauer's Atty Fees BULOVA TECHNOLOGIES: Incurs $1.37 Million Net Loss in 2nd Quarter CAESARS ENTERTAINMENT: Stockholders Elect 3 Directors CANCER GENETICS: Has Direct Offering of $5 Million Common Shares CAPE COD COMMERCIAL: Taps Darmody Merlino as Accountant CASPIAN SERVICES: Incurs $2.33 Million Net Loss in 2nd Quarter CATHEDRAL PINES: Moody's Assigns Ba2 Rating on $4.95MM GO Bonds CEETOP INC: Incurs $89,000 Net Loss in First Quarter CEETOP INC: Unit Sells Interest in Softview for $1.2 Million CELTIC CONCEPTS: Case Summary & 20 Largest Unsecured Creditors CHAPARRAL ENERGY: Posts $138 Million Net Loss for March 31 Quarter CHC GROUP: Akin Gump Represents Ad Hoc Noteholder Group CHC GROUP: Hires PJT Partners as Financial Advisor CHIEF POWER: S&P Lowers Rating on $351MM Sr. Sec. Facility to 'B+' CHINA GINSENG: Incurs $620,000 Net Loss in Second Quarter CHS/COMMUNITY HEALTH: Moody's Lowers CFR to B2, Outlook Stable CINQUE TERRE: Subpoena Against Rothenberg Modified CLAIRE'S STORES: Files Conflicts Minerals Report with SEC COATES INTERNATIONAL: CEO Makes $100,000 Additional Investment COMPASSIONATE CARE OF NJ: Hires Timothy Bluish as Accountant COMPASSIONATE CARE OF NJ: Taps James J. Cerbone as Bankr. Counsel D&E GENERAL: Case Summary & 14 Unsecured Creditors DEETOWN ENTERTAINMENT: Hires Del Virginia as Counsel DEI TRANSPORTATION: Court Strikes Plea to Extend Exclusive Periods DENBURY RESOURCES: S&P Raises CCR to 'CCC+', Outlook Negative DENNIS MEYER DANZIK: Court Allows Sigma to Pursue NY Suit DINSONS INC: U.S. Trustee Unable to Appoint Committee DOLPHIN DIGITAL: Incurs $3.44 Million Net Loss in First Quarter DRAFTDAY FANTASY: Signs $500,000 Loan Agreement with Sillerman EASTERN CONTINENTAL: Court Closes Chapter 15 Proceeding EASTMINSTER SCHOOL: Case Summary & 13 Unsecured Creditors ECOSPHERE TECHNOLOGIES: Incurs $1.96-Mil. Net Loss in 1st Quarter EFRON DORADO: PRAPI Asks Court to Deny Cash Use Bid EMMAUS LIFE: Incurs $12.7 Million Net Loss in 2015 FAIRWAY GROUP: Nasdaq to Delist Common Stock Effective June 1 FINJAN HOLDINGS: Provides Update on Patents Challenges FLOUR CITY BAGELS: Gets Final Approval to Use Cash Collateral FOREST PARK REALTY: Needs Until Sept.18 to Decide on Hospital Lease FRED FULLER OIL: Court OKs Withdrawal of Gannon as Counsel GENON ENERGY: S&P Lowers CCR to 'CCC', Outlook Negative GUIDED THERAPEUTICS: Reports Record First Quarter 2016 Results HANCOCK FABRICS: Exclusive Plan Filing Deadline Moved to Aug. 30 HECK INDUSTRIES: U.S. Trustee Forms 3-Member Committee HERC HOLDINGS: S&P Assigns 'B+' CCR, Outlook Stable HILLCREST INC: Hires Pettyjohn as Co-counsel HORSEHEAD HOLDING: Hires Suncorp as Valuator HUNT OIL: S&P Lowers CCR to 'BB-' on Geopolitical Risks ICAGEN INC: Grants Options Under 2015 Stock Incentive Plan ICAGEN INC: Incurs $1.10 Million Net Loss in First Quarter IMPLANT SCIENCES: Incurs $4.09 Million Net Loss in Third Quarter INDRA HOLDINGS: S&P Affirms 'B-' CCR, Outlook Stable INTERNATIONAL TECHNICAL: Wants Aug. 19 Plan Filing Deadline INTERVENTION ENERGY: Hires Rust/Omni as Claims and Noticing Agent IRON MOUNTAIN: S&P Assigns 'BB-' Rating on Proposed $500MM Notes ITUS CORP: Incurs $1.27 Million Net Loss in Second Quarter J & N ACQUISITIONS: Exclusive Plan Filing Period Ends on June 13 JAMES HALLIDAY LLC: U.S. Trustee Unable to Appoint Committee JAMES HOFFMAN: Ocwen's Secured Claim Can't Be Modified, Court Rules JOHN JOHNSON: Court Enforces Automatic Stay Against RFF JUROMA PROPERTIES: Hires Scura Wigfield as Counsel K.L.M. PLUMBING: U.S. Trustee Unable to Appoint Committee KJZ SUNRISE: Hires Bush Ross as General Bankruptcy Counsel KYLE PARKER: Court Affirms $1.7MM Valuation of Renters Parcel LATTICE INC: Amends March 31 Quarterly Report LEO MOTORS: Inks $10 Million Purchase Agreement with Investor LIQUIDMETAL TECHNOLOGIES: Stockholders Elect Six Directors MAHI LLC: Case Summary & 20 Largest Unsecured Creditors MARINUS VAN PEENEN: Selling Property for $580,000 MARK NEIGHBORS: Court Denies Bid to Stay Ch. 7 Conversion Order MATCH GROUP: S&P Assigns 'BB-' Rating on Proposed $400MM Notes MCCLATCHY CO: Shareholders Elect 10 Directors MEDIACOM COMMUNICATIONS: S&P Affirms B+ Rating on Sr. Unsec. Notes MELVYN WEINTRAUB: Trustee Has Approval to Sell Stocks MICHAEL JOSEPH KILROY: June 21 Hearing on Epps & Coulson's Fees MPH ACQUISITION: Moody's Assigns B2 CFR; Outlook Stable MT. GOX: Creditors Seek Trillions in Bankrupt Company NEW YORK LIGHT: Exclusive Plan Filing Period Extended to May 27 NUO THERAPEUTICS: Deerfield Partner Named as Director NUO THERAPEUTICS: Plan Declared Effective; 10-Q Report Delayed OLIN VIRTUAL: Hires Langley as Counsel OM HOSPITALITY: Case Summary & 20 Largest Unsecured Creditors OMINTO INC: Incurs $3 Million Net Loss in Second Quarter PACIFIC SUNWEAR: Key Employee Incentive Plan Approved PACIFIC SUNWEAR: UST Opposes Bid to Hire FTI as Fin'l Advisors PARAGON OFFSHORE: Directors Re-elected; PwC Stays as Auditor PARSLEY ENERGY: S&P Affirms 'B' CCR & Revises Outlook to Positive PAUL CHRISTENSEN: Court Dismisses Ch. 11 Case PAUL GREMILLION: Gemino Can File Claim for HealthEdge, Court Rules PLY GEM HOLDINGS: Stockholders Elect 3 Directors PORTER BANCORP: Has Resale Prospectus of 3.4 Million Shares POSITIVEID CORP: Closes $55,000 Note Purchase Agreement with Essex PUERTO RICO: House Committee Approves Bill with Bipartisan Support PVH CORP: S&P Affirms 'BB+' CCR, Outlook Remains Stable QUANTUM FUEL: Judge Sets July 8 Deadline for Filing Claims QUEST SOLUTION: Incurs $1.5 Million Net Loss in First Quarter RD3J LTD: Wants Period for Plan Confirmation Extended By 60 Days RESPONSE BIOMEDICAL: May Issue 496,262 Shares Under Plans RICEBRAN TECHNOLOGIES: CEO's Employment Expires Nov. 30 RICEBRAN TECHNOLOGIES: LF-RB Mgt. Reports 9% Stake as of May 18 RIVERSIDE PLAZA: Court Set to Hear UCF's Bid to Lift Stay RIVERSIDE PLAZA: Hires Linberger & Co. as Appraiser ROSETTA GENOMICS: Reports 2016 First Quarter Financial Results ROSLYN SEFARDIC: Wants Exclusive Plan Filing Extended to Sept. 21 RYCKMAN CREEK: Judge Appoints Richard Meth as Fee Examiner S. HEMENWAY: Hires Frederick & Rosen as Accountants SABINE OIL: $4.90 Billion in Claims Filed as of May 5 SABINE OIL: Posts $135 Million Net Loss for March 31 Quarter SAMSON RESOURCES: Committee Wants Exclusive Periods Terminated SH 130 CONCESSION: Files Schedules of Assets and Liabilities SOUTHCROSS HOLDINGS: Asks Court to Close Chapter 11 Cases SOUTHCROSS HOLDINGS: Schedules Filing Deadline Extended SPECTRASCIENCE INC: Posts $2 Million Net Loss for March 31 Qtr SPORTS AUTHORITY: Going-Out-of-Business Sales to Start May 26 SPORTS AUTHORITY: Hires Gordon Brothers as Appraiser STONE ENERGY: Receives NYSE Notice of Non-Compliance STONE ENERGY: Stockholders Re-Elect 10 Directors to Board SUNEDISON INC: Exclude TerraForm Entities from DIP, DIF Says SUNVALLEY SOLAR: Incurs $830,000 Net Loss in First Quarter T&H PLASTICS: Taps Polnick Law Firm as Legal Counsel TAKATA CORP: Will Restructure, Seek Cash Amid Air-Bag Recalls TECK RESOURCES: Fitch Rates $1-Bil. New Notes 'BB-/RR3' TECK RESOURCES: Moody's Assigns B1 Rating on US$1BB Sr. Notes TECK RESOURCES: S&P Affirms 'B+' CCR, Outlook Negative TRANS ENERGY: In Default Under Morgan Stanley Credit Agreement TRANSGENOMIC INC: Incurs $3.28 Million Net Loss in First Quarter TRAVIS Z KIRKLAND: Selling Dental Practice for $235,000 TRI POINTE: Moody's Assigns B1 Rating on Proposed $300MM Notes TRIPLE C FLATBED: Case Summary & 20 Largest Unsecured Creditors TWIN RINKS: Seeks Final Decree Closing Chapter 11 Case ULTRA PETROLEUM: New Directors Elected; E&Y Okayed as Auditor ULTRA PETROLEUM: NYSE to Delist Shares Effective May 31 ULTRA PETROLEUM: Warlander Owns 11% of Common Shares VALEANT PHARMACEUTICALS: Brian Stolz Quits as SVP Neurology VALEANT PHARMACEUTICALS: Gets Notice of Default from Bondholders VANGUARD HEALTHCARE: Files List of Largest Unsecured Creditors VANGUARD HEALTHCARE: U.S. Trustee Forms 7-Member Committee VERITAS BERMUDA: S&P Assigns 'B' CCR, Outlook Stable VISCOUNT SYSTEMS: Incurs C$142,000 Net Loss in First Quarter W3 CO: Moody's Lowers CFR to Caa3, Outlook Remains Negative WEST CORP: Stockholders Elect Three Directors to Board WILSON AVE: Wants 90-Day Extension of Exclusive Plan Filing Period WINDSOR FINANCIAL: Case Converted to Chapter 7 Liquidation ZEKELMAN INDUSTRIES: Moody's Affirms B3 CFR, Outlook Positive ZEKELMAN INDUSTRIES: S&P Raises CCR to 'B+', Outlook Stable ZOHAR CDO 2003: Fund Manager Turns Up Pressure on Creator [^] Recent Small-Dollar & Individual Chapter 11 Filings ********* 1103 33RD STREET: Authorized to Sell Chapel Property ---------------------------------------------------- Judge Christopher M. Alston on May 23, 2016, signed an agreed order authorizing debtor 1103 33rd Street LLC to sell certain real property commonly known as 1105 33rd St. Galveston, TX 77550 (the "Chapel Property"). The Chapel Property is one of two parcels of land owned by the Debtor, which Debtor is attempting to liquidate through this Chapter 11 proceeding. Moody Bank holds a first position deed to trust against the Chapel Property, as well as the adjacent bed and breakfast located at 1103 33rd Street, Galveston, TX 77550 (the "B & B"). There are no other liens against the Chapel Property and the proposed sale will generate sufficient funds to pay the Moody note which is secured by the Chapel Property in full. According to the Order, the sale proceeds will be used to (1) pay all reasonable closing costs, including but not limited to: (a) the broker fee; (b) any assessments that may be charged to Seller in order to vest title to Buyer pursuant to the terms of the Purchase and Sale Agreement and (c) the United States Trustee's fee in the amount of $1,625; (2) satisfy the first position deed of trust held by Moody Bank against the Chapel Property; and (3) apply any balance of the proceeds to the Moody indebtedness against the B & B property, pursuant to the Stipulation for Relief from Stay and Related Relief, and Agreed Order Approving the same. The amounts disbursed to Moody Bank from the sale proceeds will be as agreed by the parties to the referenced Stipulation, or as determined by the Court, and will not be limited to the amounts listed as owing to Moody Bank in Debtor's schedules. 1103 33rd Street LLC filed a Chapter 11 petition (Bankr. W.D. Wash. Case No. 15-16523) on Nov. 2, 2015. It estimated $500,000 to $1 million in assets and debt. The Debtor's attorneys: SCHLEMLEIN GOETZ FICK & SCRUGGS, PLLC Charles A. Lyman, Esq. Richard G. Birinyi, Esq. 66 S. Hanford Street, Suite 300 Seattle, WA 98134 Tel: (206) 448-8100 Fax: (206) 448-8514 E-mail: RGB@sgfslaw.com CAL@sgfslaw.com 2013 COLONIAL: Case Summary & 11 Unsecured Creditors ---------------------------------------------------- Debtor: 2013 Colonial LLC P.O. Box 871 Armonk, NY 10504 Case No.: 16-22715 Nature of Business: Single Asset Real Estate Chapter 11 Petition Date: May 24, 2016 Court: United States Bankruptcy Court Southern District of New York (White Plains) Judge: Hon. Robert D. Drain Debtor's Counsel: Theodore N. Zink, Jr., Esq. MCCARTHY FINGAR LLP 11 Martine Avenue, 12th Floor White Plains, NY 10606-1934 Tel: 914-385-1032 Fax: 914-946-0134 E-mail: tzink@mccarthyfingar.com Estimated Assets: $1 million to $10 million Total Liabilities: $1 million to $10 million The petition was signed by Michael Gianatasio, managing member. A list of the Debtor's 11 largest unsecured creditors is available for free at http://bankrupt.com/misc/nysb16-22715.pdf 2747 CAMELBACK: Hires Munsch Hardt as General Bankruptcy Counsel ---------------------------------------------------------------- 2747 Camelback, LLC, asks the U.S. Bankruptcy Court for the Northern District of Texas to employ Munsch Hardt Kopf & Harr, P.C., as general bankruptcy counsel. A hearing on the request is set for June 16, 2016, at 9:00 a.m. The Debtor has requested authority to retain Franklin Hayward LLP as special litigation counsel regarding a conflict involving Munsch Hardt, and has not otherwise requested authority to retain any other attorneys in this case. Nevertheless, the Debtor reserves the right to request authority to retain other counsel if and when the need may arise given the developments in the bankruptcy case. Munsch Hardt will: a. serve as attorneys of record for the Debtor in all aspects, to include any adversary proceedings commenced in connection with the bankruptcy case and to provide representation and legal advice to the Debtor throughout the bankruptcy case; b. assist the Debtor in carrying out its duties under the Bankruptcy Code, including advising the Debtor of duties, its obligations, and its legal rights; c. consult with the U.S. Trustee, any statutory committee that may be formed, and all other creditors and parties- in-interest concerning administration of the bankruptcy case; d. assist in potential sales of the Debtor's assets; e. prepare on behalf of the Debtor all motions, applications, answers, orders, reports, and other legal papers and documents to further the Estate’s interests and objectives, and to assist the Debtor in the preparation of schedules, statements, and reports, and to represent the Debtor and the estate at all related hearings and at all related meetings of creditors, U.S. Trustee interviews, and the like; f. assist the Debtor in connection with formulating and confirming a Chapter 11 plan; g. assist the Debtor in analyzing and appropriately treating the claims of creditors; h. appear before this Court and any appellate courts or other courts having jurisdiction over any matter associated with the bankruptcy case; and i. perform all other legal services and provide all other legal advice to the Debtor as may be required or deemed to be in the interests of the estate in accordance with the Debtor's powers and duties as set forth in the Bankruptcy Code. The Firm will be paid at these hourly rates: Davor Rukavina, Shareholder $425 Thomas Berghman, Associate $325 Edward Clarkson, Associate $320 On April 1, 2016, the Debtor provided Munsch Hardt with a retainer in the amount of $100,000. On May 4, 2016, Munsch Hardt drew on the retainer in the amount of $33,599.87, leaving a balance held in retainer by Munsch Hardt as of the Petition Date of $66,400.13. Thereafter, after the Petition Date, the Debtor requested that Munsch Hardt transfer $5,000 of its retainer to Franklin Hayward LLP, special litigation counsel to the Debtor regarding G & I VII CB Road, LLC, on account of Munsch Hardt's conflict with that estate defendant. Munsch Hardt agreed and transferred said funds, leaving a balance in retainer of $61,400.13, which funds Munsch Hardt will continue to hold and not apply except as authorized by the Court. Davor Rukavina, Esq., a shareholder at the Firm, assures the Court that the Firm (i) doesn't have any connection with the Debtor, its creditors, or any other party-in-interest or their respective attorneys and accountants; (ii) doesn't have any connection with the U.S. Trustee or any person employed in the Office of the U.S. Trustee; (iii) are "disinterested persons," as that term is defined in Section 101(14) of the U.S. Bankruptcy Code; and (iv) does not hold or represent any interest adverse to the Debtor's bankruptcy estate. 2747 Camelback, LLC, based in Dallas, Texas, filed a Chapter 11 petition (Bankr. N.D. Tex. Case No. 16-31846) on May 4, 2016. The Hon. Harlin DeWayne Hale presides over the case. Davor Rukavina, Esq., at Munsch, Hardt, Kopf & Harr, P.C., serves as counsel to the Debtor. In its petition, the Debtor estimated $10 million to $50 million in both assets and debts. The petition was signed by Scott Ellington, authorized signatory. 3920 PARK AVENUE: Taps Zimmel Associates as Realtor --------------------------------------------------- 3920 Park Avenue Associates, L.P., seeks permission from the U.S. Bankruptcy Court for the District of New Jersey to employ Zimmel Associates as realtor. The Debtor intends to sell its 60,000 square foot industrial building located at 3920 Park Avenue, Edison, NJ 08820 or lease it as part of its on-going business. Zimmel will market the Property for sale or lease. Zimmel will be entitled to a commission of 5% of the sales price of the Property or 5% of the total aggregate net rental for the lease of the Property. David Zimmel, president of Zimmel, assures the Court that the firm doesn't hold nor represent an adverse interest to the estate, and is disinterested under 11 U.S.C. Section 101(14). The Firm can be reached at: David Zimmel Zimmel Associates 1090 King Georges Post Road, Suite 808 Edison, NJ 08837 Tel: (732) 661-9200 Fax: (732) 661-9617 E-mail: dzimmel@zimmel.com Morristown, New Jersey-based 3920 Park Avenue Associates, L.P., filed for Chapter 11 bankruptcy protection (Bankr. D. N.J. Case No. 16-14923) on March 16, 2016, estimating its assets at between $1 million and $10 million and liabilities between $10 million and $50 million. The petition was signed by Lawrence S. Berger, authorized agent. Judge Stacey L. Meisel presides over the case. Morris S. Bauer, Esq., at Norris McLaughlin & Marcus, PA, serves as the Debtor's bankruptcy counsel. 5 STAR INVESTMENT: Hires BGBC Partners as Accountant ---------------------------------------------------- Douglas R. Adelsperger, the Chapter 11 Trustee of 5 Star Investment Group LLC, et al., ask the U.S. Bankruptcy Court for the Northern District of Indiana for authorization to employ BGBC Partners, LLP, as accountant, nunc pro tunc, as of March 14, 2016. The Firm will: a. prepare the fiduciary federal and state tax returns for the estates; b. assist the Trustee with respect to his duties pursuant to Section 1106(a) of the Bankruptcy Code; c. analysis of potential avoidance actions; d. analysis of insolvency; e. provide financial record reconstruction; f. calculation and administration of claims on investor- related matters; g. assist the Chapter 11 Trustee with recovery of assets; and h. provide assistance to the Chapter 11 Trustee as to any and all other accounting and forensic accounting needs of these estates. The Firm will be paid at these hourly rates: Partner $310-$405 Senior Manager $220-$320 Manager $185-$275 Senior Accountant $160-$210 Staff $145-$190 Paraprofessional $90-$125 Howard I. Gross, a partner at the Firm, assures the Court that the Firm doesn't doesn't hold or represent any interest adverse to the bankruptcy estates in the matters for which the Firm is proposed to be retained, and therefore, the Firm is a "disinterested person" as that term is defined in 11 U.S.C. Section 101(14). The Firm can be reached at: Howard I. Gross BGBC Partners, LLP 300 N. Meridian Street, Suite 1100 Indianapolis, IN 46204 Tel: (317) 633-4700 Fax: (317) 860-1065 E-mail: howardg@bgbc.com 5 Star Investment Group, LLC, and its 10 affiliates sought protection under Chapter 11 of the Bankruptcy Code on Jan. 25, 2016 (Bankr. N.D. Ind., Case No. 16-30078), estimating its assets at up to $50,000 and its liabilities at between $1 million and $10 million. The case is assigned to Judge Harry C. Dees, Jr. The Debtor's counsel is Katherine C. O'Malley, Esq., at Cozen O'Connor, in Chicago, Illinois. The petition was signed by Earl Miller, authorized representative. 99 CENTS ONLY: S&P Cuts CCR to CCC+ on Challenged Capital Structure ------------------------------------------------------------------- S&P Global Ratings lowered its corporate credit rating on City of Commerce, Calif.-based 99 Cents Only Stores to 'CCC+' from 'B-'. The outlook is negative. Concurrently, S&P lowered its issue-level ratings on the company's term loan facility to 'CCC+' from 'B-'. S&P revised the recovery rating to '4', indicating its expectation for average recovery at the lower half of the 30% to 50% range in the event of a payment default, from '3'. S&P also lowered the issue-level rating on the company's $250 million senior notes to 'CCC-' from 'CCC'. The recovery rating remains '6' indicating S&P's expectations for negligible (0% to 10%) recovery. "The downgrade reflects our expectation that 99 Cents Only's weak operating performance trends, which have caused liquidity to weaken and credit protection measures to erode, will persist as it continues to address executional issues that have led to lower customer traffic amid increased competitive headwinds," said credit analyst Declan Gargan. "Given our expectations for operating performance in the next year, we believe the company's capital structure is unsustainable and we expect debt to EBITDA to remain over 13.0x and funds from operations (FFO) to debt to remain at depressed levels, less than 3.0%, in fiscal 2017." The negative outlook on 99 Cents Only reflects S&P's view that operating performance will remain challenged throughout 2016, constraining free cash flow generation and pressuring liquidity. S&P could lower the ratings if it envisions a specific default scenario occurring over the next 12 months. This could arise if the company's liquidity deteriorated such that it increased reliance on its revolver, leading to its fixed charge covenant being triggered and S&P concluding that the company could no longer service its interest obligations going forward. S&P could also lower the ratings if it believes a debt restructuring is likely. An upgrade is unlikely over the next twelve months absent a significant turnaround in the company's operating performance that leads to an improvement in liquidity and credit metrics that return the company's capital structure to sustainable levels. S&P could also raise the ratings if the company were to receive an equity infusion from its sponsor. ACTIVECARE INC: Incurs $15.5 Million Net Loss in 2nd Quarter ------------------------------------------------------------ ActiveCare, Inc., filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss attributable to common stockholders of $15.5 million on $1.59 million of revenues for the three months ended March 31, 2016, compared to a net loss attributable to common stockholders of $1.42 million on $1.55 million of revenues for the same period in 2015. For the six months ended March 31, 2016, the Company reported a net loss attributable to common stockholders of $18.22 million on $3.68 million of revenues compared to a net loss attributable to common stockholders of $4.14 million on $3.06 million of revenues for the six months ended March 31, 2015. As of March 31, 2016, ActiveCare had $2.15 million in total assets, $25.64 million in total liabilities and a total stockholders' deficit of $23.48 million. A full-text copy of the Form 10-Q is available for free at: https://is.gd/IOSrwH About ActiveCare South West Valley City, Utah-based ActiveCare, Inc., is organized into three business segments based primarily on the nature of the Company's products. The Stains and Reagents segment is engaged in the business of manufacturing and marketing medical diagnostic stains, solutions and related equipment to hospitals and medical testing labs. The CareServices segment is engaged in the business of developing, distributing and marketing mobile health monitoring and concierge services to distributors and customers. The Chronic Illness Monitoring segment is primarily engaged in the monitoring of diabetic patients on a real time basis. The Company's business plan is to develop and market products for monitoring the health of and providing assistance to mobile and homebound seniors and the chronically ill, including those who may require a personal assistant to check on them during the day to ensure their safety and well being. ActiveCare reported a net loss attributable to common stockholders of $12.8 million on $6.59 million of chronic illness monitoring revenues for the year ended Sept. 30, 2015, compared with a net loss attributable to common stockholders of $16.4 million on $6.10 million of chronic illness monitoring revenues for the year ended Sept. 30, 2014. Tanner LLC, in Salt Lake City, Utah, issued a "going concern" qualification on the consolidated financial statements for the year ended Sept. 30, 2015, citing that the Company has recurring losses, negative cash flows from operating activities, negative working capital, negative total equity, and certain debt that is in default. These conditions, among others, raise substantial doubt about its ability to continue as a going concern. ALBERTSONS COMPANIES: Moody's Rates New $1.5BB Term Loan Ba2 ------------------------------------------------------------ Moody's Investors Service assigned a Ba2 rating to Albertsons Companies, LLC's new proposed $1.5 billion Term Loan and B3 rating to the company's new proposed $1.25 billion senior unsecured notes. Moody's also upgraded the rating of the company's existing senior secured term loans maturing 2021 to Ba2 from Ba3 and downgraded the Safeway, Inc. legacy notes to B3 from B2. All other ratings including the company's B1 Corporate Family Rating and B1-PD Probability of Default rating are affirmed. The rating outlook remains stable. The proceeds of the new Term Loan and the new notes will be used to refinance the company's second lien notes maturing 2022 and the senior secured term loans maturing in 2019. All ratings are subject to the completion of the proposed transaction and satisfactory review of documentation. "Although the company has outperformed expectations, its credit metrics remain weak with debt to EBITDA adjusted for leases and pension liabilities at about 7.5 times at the end of fiscal 2015. However, we expect momentum in same store sales growth and cost efficiencies to continue to boost profitability resulting in improved credit metrics with debt to EBITDA expected to be approach 6.0 times in the next 12-18 months", Moody's Vice President and Senior Credit Officer Mickey Chadha stated. "Although the integration of the Safeway acquisition still has execution and integration risks, management continues to execute well and the combined company is the second largest supermarket chain in the U.S. with significant opportunities to create synergies and supply chain efficiencies that could further enhance profitability and top line growth", Chadha further added. These ratings are assigned: Proposed new $1.5 billion senior secured term loan maturing 2023 at Ba2 (LGD2) Proposed new $1.25 billion senior unsecured notes maturing 2024 at B3 (LGD5) These ratings are affirmed: Albertsons Companies, LLC Corporate Family Rating at B1 Probability of Default Rating at B1-PD These ratings are affirmed and will be withdrawn upon closing: Albertson's Holdings LLC Second lien notes maturing 2022 at B2 (LGD4) Senior secured term loans maturing 2019 at Ba3 (LGD2) These ratings are upgraded and LGD assessment updated: Albertson's Holdings LLC Senior secured term loans maturing 2021 at Ba2 (LGD2) from Ba3 (LGD2) These ratings are downgraded and LGD assessment updated: Safeway Inc. legacy notes maturing 2016, 2017, 2019, 2020, 2021, 2027 and 2031 at B3 (LGD5) from B2 (LGD4) RATINGS RATIONALE The B1 Corporate Family Rating of Albertsons Companies, LLC reflects the company's very good liquidity, its sizable scale and its well established regional brands. Safeway has a good store base with over ninety percent of its stores converted to the Lifestyle format with modest capital expenditures required for their maintenance. The store base also consists of stores acquired from Supervalu in 2013 with prolonged underperformance under previous ownership. The company also acquired 73 A&P stores and 35 Haggen stores in fiscal 2015 with 29 more Haggen stores to be acquired in the first half of fiscal 2016. Management has vast experience in the food retailing space and has demonstrated its ability to turnaround underperforming assets and the ratings reflect Moody's expectation that operating performance of all banners will continue to improve as price investments lead to increased traffic and volume. The initiatives undertaken by management have already proven successful in stabilizing and improving the operating performance of the company's stores. In 2015 identical store sales grew 4.8% for the consolidated company and identical store sales growth has been positive for the last 11 quarters. Operating efficiencies and strategic initiatives to minimize costs are also expected to reduce expenses and improve cash flow generation and enhance profitability with the company using excess free cash flow to pay down debt. Realized synergies for fiscal 2015 have exceeded expectations by about 30% and proceeds of about $350 million expected from the sale of some non-core assets are also expected to be used to reduce debt. Integration and execution challenges related to the Safeway acquisition, coupled with a high debt burden and risk associated with ownership by a financial sponsor, remain major risks for the company. The proposed transaction will further simplify the company's capital structure creating a first lien secured and unsecured capital structure. The upgrade of the existing senior secured term loans to Ba2 and the Ba2 rating of the new term loan is the result of the larger amount of junior capital in the capital structure as the refinancing of the company's $610 million senior secured notes maturing 2022 will also result in the removal of guarantees and release of all collateral currently securing the Safeway legacy notes. The term loans also have very good collateral coverage as assets securing the term loans include the company's real estate portfolio with an appraised market value in excess of the outstanding term loans. The senior unsecured notes along with our approximately $6.2 billion adjustment for Multi-employer pension plan liabilities also provide a significant amount of junior capital providing support to the senior secured credit facilities in Moody's Loss Given Default model. Currently the Safeway legacy notes maturing in 2016 ($80 million), 2017 ($100 million) and 2019 ($269 million) are guaranteed by ACL and its subsidiaries that guarantee the 2022 notes and is secured on a pari passu basis with the 2022 notes by all of the collateral that secures the 2022 Notes . The Safeway legacy notes maturing in 2020 ($137 million), 2021 ($130 million), 2027 ($150 million) and 2031 ($600 million) are not guaranteed and are currently secured on a pari passu basis with the 2022 notes only to the extent of certain of the collateral owned by Safeway and its subsidiaries. The Safeway legacy notes are therefore downgraded to B3 from B2 as they along with the $1,776 million unsecured New Albertsons Inc. notes (unrated) will now be unsecured and non-guaranteed and therefore the junior most debt in the pro forma capital structure. Although the new senior unsecured notes will be guaranteed by all wholly owned subsidiaries of ACL and therefore will be structurally senior to the Safeway legacy notes their B3 rating is the same as the Safeway legacy notes. This reflects the significant amount of senior capital ahead of these notes These notes are junior to the $4 billion ABL (which had a borrowing base of about $3.7 billion at Feb. 27, 2016,), about $6.5 billion in senior secured term loans and a significant amount of senior priority trade payables in Moody's Loss Given Default model. The company's stable rating outlook incorporates Moody's expectation that identical store sales will continue to be positive and EBIT margins will continue to improve and the company's credit metrics will improve through increased EBITDA generation and debt prepayments. Ratings could be upgraded if debt/EBITDA approaches 5.0 times, EBIT/interest is sustained above 1.75 times, financial policies remain benign and liquidity remains very good. Ratings could be downgraded if debt/EBITDA is sustained above 6.25 times or EBIT/interest is sustained below 1.5 times. Ratings could also be downgraded if financial policies become aggressive or if liquidity deteriorates or if the integration of the acquired Safeway stores does not result in expected synergies and improvement in overall profitability of the combined company. The principal methodology used in these ratings was Retail Industry published in October 2015. Albertsons Companies, LLC is owned by a consortium led by Cerberus Capital Management and is the parent of Safeway Inc., Albertson's LLC and New Albertsons Inc. The combined company operates 2,271 grocery stores in 33 States under 18 banners including Safeway, Albertsons, Vons Jewel Osco, Shaw's, United Supermarkets, Acme, Star, Carrs, Randalls, Pavilions, Market Street, Tom Thumb, and Amigos. Revenues of the combined company will be about $59 billion. ALLIED FINANCIAL: Notifies Secured Creditor of Proposed Sale ------------------------------------------------------------ At the directive of Judge Mildred Caban Flores for the District of Puerto, Allied Financial Inc. filed a motion informing its secured creditor, Centro de Recaudacion de Ingresos Municipales de Puerto Rico, of the Debtor's decision to sell its property located at Barrio Guayabal, Sector Lajitas Road P.R., 550 Juana Diaz, in Puerto Rico. The motion stated, among other things, that: "(a) CRIM was served with the Motion to Sell on the same day as all other creditors and parties in interest, but in the spirit of caution the Motion to Sell is being notified to CRIM again via first class to its address of record, (b) the Sales Agreement states that "M Investment, LLC. agrees to assume payment of the real estate property taxes owed as of the Closing Date in connection with the Property, and (c) the sale of the asset will provide for full payment to CRIM." The Troubled Company Reporter earlier reported that the Debtor sought court authority to sell the property valued at $75,000. The Debtor listed Oriental Bank with a secured claim over the property in the amount of $72,593 and a secured claim in favor of Centro de Recaudacion de Ingresos Municipales de Puerto Rico in the amount of $905. Judge Caban Flores ordered the Debtor to notify CRIM and file a certificate of service, and in turn, CRIM is ordered to file any objection within ten (10) days from notice of the sale by the Debtor. Allied Financial Inc is represented by: Carmen D. Conde Torres, Esq. 254 San Jose Street, 5th Floor Old San Juan, Puerto Rico 00901-1523 Telephone: 787-729-2900 Facsimile: 787-729-2203 E-mail: condecarmen@condelaw.com About Allied Financial Allied Financial, Inc. filed a Chapter 11 bankruptcy petition (Bankr. D.P.R. Case No. 16-00180) on Jan. 15, 2016. The petition was signed by Rafael Portela, president of the Board of Directors. The Debtor disclosed total assets of $10.3 million and total debts of $9.14 million. C. Conde & Assoc. represents the Debtor as counsel. Mildred Caban Flores has been assigned the case. ALPHA NATURAL: Can Terminate UMWA CBAs, Modify Retiree Benefits --------------------------------------------------------------- Judge Kevin R. Huennekens of the U.S. Bankruptcy Court for the Eastern District of Virginia authorized Alpha Natural Resources, Inc., et al., to terminate the collective bargaining agreements with the United Mine Workers of America and modify certain retiree benefits, including the elimination of their liabilities under the Coal Industry Retiree Health Benefit Act of 1992. Judge Huennekens found that the Debtors have met their burden to prove that the rejection of the CBAs and the modification of their retiree benefits are necessary under both the Second Circuit and the Third Circuit tests. The Court also pointed out that the Debtors' non-union and union employees have been treated in a fair and equitable manner, noting that non-union employees have suffered all of the labor cost reductions up until the Rejection Motion. The Court found that Sections 1113 and 1114 of the Bankruptcy Code apply to this proceeding. The Court also found that the Debtors' obligations under the Coal Act are "retiree benefits" and that the Debtors negotiated and presented their January 4 Proposal to the "authorized representative" of the Coal Act Funds. Finally, the Court concluded that the Debtors have satisfied the nine-factor test set forth in American Provision Co. in order to obtain relief under Sections 1113 and 1114 to terminate their collective bargaining agreements with the UMWA and modify their outstanding retiree benefit obligations. Accordingly, the Court will permit the Debtors to reject their collective bargaining agreements with the UMWA pursuant to Section 1113(c) of the Bankruptcy Code and to modify their retiree benefit obligations to the UMWA Funds and (under the Coal Act) with the Coal Act Funds pursuant to Section 1114(g) of the Bankruptcy Code. A full-text copy of Judge Huennekens' Memorandum Opinion dated May 24, 2016, is available at http://bankrupt.com/misc/ALPHA24990524.pdf 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 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. ALPHA NATURAL: Hearing Today on Sale of PLR Assets to Vantage ------------------------------------------------------------- Alpha Natural Resources is slated to appear before the U.S. Bankruptcy Court at 10:00 a.m. Thursday, May 26, 2016, for a hearing to approve the sale of the assets of its subsidiary, Pennsylvania Land Resources, LLC. A subsidiary of Vantage Energy Inc. has been designated as successful bidder following an auction on May 16. Vantage beat out Rice Energy, which acted as lead bidder. Jamison Cocklin, writing for Natural Gas Intelligence's naturalgasintel.com, reported that Vantage Energy Appalachia II LLC has offered $339.5 million for the assets. PRL, one of the Debtors, in April entered into an amended and restated asset purchase agreement with Rice Drilling B LLC, an affiliate of Rice Energy, whereby Rice would purchase substantially all of the assets of PLR for $200 million in cash, subject to limited purchase price adjustments, and the assumption of certain liabilities. Pursuant to the terms of the Purchase Agreement, PLR and certain affiliated entities will sell leasehold interests in approximately 27,400 net undeveloped Marcellus acres, as well as fee interests in the oil and gas underlying an additional 3,200 gross acres. Included within the acreage to be acquired by Rice are the rights to the Utica on approximately 23,500 net acres. The Purchase Agreement provides that at closing, Rice and certain Alpha affiliates will enter into agreements providing for the rights of the parties with respect to the development of (a) the coal, by the Alpha affiliates or their successors in interest, and (b) the oil and gas, by Rice. The Rice Purchase Agreement requires a $20 million escrow deposit from Rice, to be released to PLR at closing. The Purchase Agreement is intended to constitute a "stalking horse bid" for the PLR assets in accordance with bidding procedures previously approved by the Bankruptcy Court, and includes certain bid protections for Rice, including a maximum expense reimbursement of $1.5 million and a break-up fee of $2 million. The Bid Protections are payable upon certain termination events, including consummation of a competing transaction. The Debtors' first lien lenders have agreed to a stalking horse credit bid in the amount of $500 million for certain of the Debtors' assets, including the assets of PLR, as set forth in an Asset Purchase Agreement filed with the Bankruptcy Court on March 8, 2016. In a filing with the Bankruptcy Court on March 18, 2016, the First Lien Lenders allocated $175 million of their credit bid to the PLR assets. To accommodate the Purchase Agreement with Rice, the First Lien Lenders have agreed to modify the Lender APA to remove the PLR assets and reduce the credit bid purchase price to $325 million. A copy of the purchase agreement with Rice is available at http://goo.gl/Um9sUS On April 26, 2016, after a hearing, the Bankruptcy Court entered an order (a) designating Rice as the stalking horse bidder for the PLR assets on terms of the Purchase Agreement, subject to higher or better bids, (b) approving the Bid Protections and (c) granting certain related relief. The Purchase Agreement with Rice will remain subject to competing bids, and a potential auction scheduled for May 16. Consummation of the transaction with Rice or another successful bidder after any auction remains subject to approval by the Bankruptcy Court at a hearing scheduled for May 26. The NGI report noted that Colorado-based Vantage Energy already holds 48,000 net Marcellus acres in Greene County. The privately-owned company also operates in the Fort Worth and Uinta-Piceance basins. Alpha said Vantage was among five bidders for the assets, adding that another bid of $335 million was the next best. A hearing to approve the sale of the Debtors' core assets, the "Reserve Price Assets" -- originally scheduled for May 26 -- has been adjourned to the date of the hearing regarding confirmation of the Debtors' Plan of Reorganization as the sale will be consummated as part of the Plan pursuant to a confirmation order. As part of the sale of the PLR assets, the Debtors received: -- Reservation of Rights of Talen Generation, LLC to Proposed PLR Sale Transaction; -- Commonwealth of Pennsylvania Department of Environmental Protection's Limited Objection to and Reservation of Rights Regarding the Amended and Restated Asset Purchase Agreement between Pennsylvania Land Resources, LLC and Rice Drilling B LLC and Proposed Sale Order for Debtor's Oil and Gas Assets in Pennsylvania; and -- Sureties' Objection to Debtors' Proposed Sale to the PLR Stalking Horse, Objection to the PLR Transaction Documents, and Reservation of Rights. The Debtors have reached a consensual resolution with respect to the Sureties' Objection and the Talen Reservation. The Debtors are engaged in negotiations with the Pennsylvania Department of Environmental Protection regarding a consensual resolution of the Pennsylvania DEP Objection. Rice is being represented in Alpha's case by: Vinson & Elkins LLP 1001 Fannin Street, Suite 2500 Attention: David Meyer, Esq. Bryan Loocke, Esq. Facsimile: 713-615-5031 E-mail: dmeyer@velaw.com bloocke@velaw.com 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, 2016, 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 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. ALPHA NATURAL: Sale Hearing for Core Assets Adjourned Sine Die -------------------------------------------------------------- The hearing to approve the sale of Alpha Natural Resources' core assets, the "Reserve Price Assets", has been adjourned to the date of the hearing regarding confirmation of the Plan as that sale will be consummated as part of the Plan pursuant to a confirmation order. The sale hearing was originally set for May 26. The Debtors' first lien lenders have agreed to a stalking horse credit bid in the amount of $500 million for certain of the Debtors' assets, including the assets of subsidiary, Pennsylvania Land Resources, LLC, as set forth in an Asset Purchase Agreement filed with the Bankruptcy Court on March 8, 2016. In a filing with the Bankruptcy Court on March 18, the First Lien Lenders allocated $175 million of their credit bid to the PLR assets. To accommodate the Purchase Agreement with Rice Energy, the First Lien Lenders have agreed to modify the Lender APA to remove the PLR assets and reduce the credit bid purchase price to $325 million. Several objections have been filed over the proposed sale. A hearing on the sale of the PLR assets to a unit of Vantage Energy, Inc., the winner at an auction held early last week, will go forward on May 26. 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 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 PARKING: Hires WRG Certified Public Accountants -------------------------------------------------------- American Parking System, Inc., seeks authorization from the U.S. Bankruptcy Court for the District of Puerto Rico to employ WRG Certified Public Accountants, P.S.C., and its managing partner, CPA William Rodriguez, as the Debtor's financial advisor, for general accounting, taxes and financial consulting services in connection with this bankruptcy petition. The Firm will provide these services: a) reconciliation of financial information to assist Debtor in the preparation of monthly operating reports; b) assistance in the reconciliation and clarification of proof of claims filed and amount due to creditors; c) general accounting and tax services to prepare year-end reports and income tax preparation, if necessary; d) assistance for Debtor and Debtor's counsel in the preparation of the supporting documents for the Chapter 11 Reorganization Plan. Mr. Rodriguez will be paid $125 per hour for his services. The Firm itself received a retainer in this case in the amount of $8,000, which sum is generated by the Debtor from the regular operations of the business. Mr. Rodriguez assures the Court that he is a disinterested person, as defined in 11 U.S.C. Section 101(14). The Firm can be reached at: William Rodriguez, CPA WRG Certified Public Accountants, P.S.C. 103 Calle Acosta, Esquina Drive Marti Caguas, PR 00725 Tel. (787) 286-6614 E-mail: William@wrgcpa.com Headquartered in San Juan, Puerto Rico, American Parking System Inc. filed for Chapter 11 bankruptcy protection (Bankr. D. P.R. Case No. 16-02761) on April 8, 2016, estimating its assets at up to $50,000 and its liabilities at between $10 million and $50 million. The petition was signed by Miguel Cabral Veras, president. Judge Edward A Godoy presides over the case. Alexis Fuentes Hernandez, Esq., at Fuentes Law Offices, LLC, serves as the Debtor's bankruptcy counsel. AOG ENTERTAINMENT: Inks Restructuring Support Deal with Lenders --------------------------------------------------------------- AOG Entertainment, Inc., et al., seek authority from the U.S. Bankruptcy Court for the Southern District of New York to perform under a restructuring support agreement with holders of 100% of the amount of obligations outstanding under both the (i) the Debtors' $200 million term loan facility pursuant to that certain First Lien Term Loan Agreement, dated as of December 9, 2011; and (ii) the Debtors' $160 million term loan facility pursuant to that certain Second Lien Term Loan Agreement, dated as of December 9, 2011. Pursuant to the RSA, the Consenting Lenders committed to, among other things, support the Debtors' Plan, which will significantly reduce the Debtors' funded indebtedness. Significantly, the Debtors' two largest lenders have agreed to reinvest approximately $18 million in the reorganized Debtors under the Plan. The parties agreed that holders of General Unsecured Claims will receive their pro rata share of: (i) GUC Units in the Litigation Trust and (ii) GUC Cash; provided, that (A) if the class of General Unsecured Claims votes to accept the Plan, such holders shall receive the GUC Cash that would otherwise be distributed to the First Lien Lenders and Second Lien Lenders on account of their deficiency claims and (B) if the class of General Unsecured Claims votes to reject the Plan, the portion of the GUC Cash that would be distributed to the First Lien Lenders and Second Lien Lenders on account of their deficiency claims shall be retained by the reorganized Debtors. Notwithstanding the foregoing, no holder of a General Unsecured Claim shall receive a distribution of GUC Cash in excess of the cap set forth in the Term Sheet. In addition, the Plan will provide for, among other things (i) a Management Incentive Plan, for up to 12.5% of the Class A Units of reorganized CORE Entertainment, (ii) the creation of the Litigation Trust, as well as funding and governance mechanisms relating thereto, (iii) the assumption, assumption and assignment or rejection of executory contracts and unexpired leases consistent with the approval provisions of the RSA and (iv) the payment of the fees and expenses of the agents and lenders under the FLTLA and SLTLA incurred in connection with the negotiation and consummation of the RSA, the Term Sheet, the Plan and the documents related thereto, which the Debtors submit is necessary to induce the Consenting Lenders to agree to the terms and conditions of the RSA. A hearing on the approval of the RSA will be held on June 28, 2016, at 10:00 a.m. (prevailing Eastern time). Objections are due June 21. The Debtors are represented by: Matthew A. Feldman, Esq. Paul V. Shalhoub, Esq. Andrew S. Mordkoff, Esq. WILLKIE FARR & GALLAGHER LLP 787 Seventh Avenue New York, NY 10019 Tel: (212) 728-8000 Fax: (212) 728-8111 E-mail: pfeldberg@willkie.com pshalhoub@willkie.com amordkoff@willkie.com About AOG Entertainment CORE Entertainment Inc. and its subsidiaries own, produce, develop and commercially exploit entertainment content. The Company's portfolio of world-class brands and entertainment properties includes participation in the "IDOL"-branded shows, including American Idol, Deutschland sucht den Superstar, Nouvelle Star and more than fifty other franchises shown around the world, and the popular television series "So You Think You Can Dance". The Company conducts its primary business activities through its subsidiary groups, including 19 Entertainment. CORE Entertainment Inc. and 47 other affiliates each filed a Chapter 11 bankruptcy petition (Bankr. S.D.N.Y. Case Nos. 16-11087 to 16-11134, respectively) on April 28, 2016, two days prior to the expiration of their forbearance agreement with (a) certain lenders holding the requisite amount of loans under a first lien term loan facility; and (b) Crestview Media Investors, L.P., as lender under the first lien term loan facility and a second lien term loan facility. Pursuant to the Forbearance Agreements, the lenders agreed to forbear from exercising their remedies on account of any missed payments or certain alleged defaults under the Term Loan Agreements. The Debtors estimated assets and liabilities in the range of $100 million to $500 million. The Debtors have hired Willkie Farr & Gallagher LLP as counsel, Moelis & Company, LLC as financial advisor, PricewaterhouseCoopers LLP as auditors and tax consultants and Kurtzman Carson Consultants LLC as claims, noticing and administrative agent. The cases are pending joint administration under AOG Entertainment, Inc., Case No. 16-11090 before the Honorable Stuart M. Bernstein. The U.S. trustee for Region 2 on May 17, 2016, appointed three creditors of AOG Entertainment, Inc., and its affiliates to serve on the official committee of unsecured creditors. APRICUS BIOSCIENCES: Stockholders Elect 2 Directors --------------------------------------------------- Apricus Biosciences, Inc., held its 2016 Annual Meeting of Stockholders on May 20, at which the stockholders: (a) elected Kleanthis Xanthopoulos, Ph.D. and Paul V. Maier to serve as Class I directors; (b) ratified the appointment of BDO USA, LLP as the Company's independent registered public accounting firm for the fiscal year ending Dec. 31, 2016; and (c) approved, on an advisory basis, the executive compensation paid to the Company's named executive officers. About Apricus Biosciences Apricus Biosciences, Inc., is a Nevada corporation that was initially formed in 1987. The Company has operated in the pharmaceutical industry since 1995. The Company's current focus is on the development and commercialization of innovative products and product candidates in the areas of urology and rheumatology. The Company's proprietary drug delivery technology is a permeation enhancer called NexACT. Apricus reported a net loss of $19.02 million in 2015, a net loss of $21.78 million in 2014 and a net loss of $16.93 million in 2013. As of March 31, 2016, Apricus had $10.4 million in total assets, $17.3 million in total liabilities, and a total stockholders' deficit of $6.84 million. BDO USA, LLP, in La Jolla, California, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2015, citing that the Company has negative working capital and has suffered recurring losses and negative cash flows from operations that raise substantial doubt about its ability to continue as a going concern. ARES CAPITAL: Moody's Affirms Ba1 CFR & Changes Outlook to Neg. --------------------------------------------------------------- Moody's Investors Service affirmed the Ba1 Corporate Family and senior unsecured ratings of Ares Capital Corporation ("ARCC") and changed the rating outlook to negative. Moody's also placed the B2 Corporate Family, B2 Senior Secured , and B3 Senior Unsecured ratings of American Capital, Ltd. ( "ACAS") on review for upgrade. This follows ARCC's announcement that it will acquire ACAS, excluding American Capital Mortgage Management, LLC ("ACMM"), which ACAS will sell in a separate transaction. RATINGS RATIONALE Moody's is revising ARCC's outlook to negative to reflect the incremental risks to the company's operating performance and capital cushion from acquiring ACAS' higher risk portfolio of middle market debt and equity investments, as well as execution risks relating to the approval and consummation of the transaction, and integration of ACAS' operations. Moody's is reviewing ACAS' ratings for possible upgrade because the transaction potentially improves the probability of default for ACAS' creditors, given ARCC's relatively stronger credit profile. Additionally, ARCC expects to repay ACAS' outstanding debt at transaction closing. ARCC will acquire a majority of assets from ACAS for total consideration of approximately $3.43 billion, including $1.47 billion of cash and approximately 110.8 million of ARCC shares with a total market value of $1.682 billion at May 20, 2016; In addition, Ares Management, ARCC's investment manager, will contribute cash of $275 million to be paid to ACAS shareholders. Separately, ACAS will sell ACMM to American Capital Agency Corp. for $562 million; the sale is a condition precedent to the ARCC transaction. The two transactions are expected to close by the end of 2016. The negative outlook on ARCC's ratings reflects the riskier portfolio of middle-market debt and equity investments that ARCC is acquiring from ACAS that is weighted toward more junior investments than is ARCC's own portfolio, thus increasing potential earnings and assets volatility. At March 31, 2016, approximately 38% of ACAS's portfolio was comprised of Senior Secured loans. By contrast, approximately 82% of ARCC's portfolio was comprised of Senior Secured loans, including its certificates in its Senior Secured Loan Program ("SSLP") joint venture. In addition, approximately 29% of ACAS's portfolio excluding its equity investment in American Capital Asset Management, LLC consisted of equity securities, compared to 11% for ARCC. The transaction also poses integration risks, though we note that Ares successfully managed its acquisition of weakened business development company Allied Capital in 2010. ARCC will finance a portion of the transaction with new debt issuance, but expects lower pro forma leverage of between .65-.75x at closing, compared to .77x at March 31, 2016, which partially mitigates concern regarding the quality of the acquired ACAS portfolio. ARCC expects to gradually liquidate riskier ACAS investments and reinvest capital proceeds into first-lien secured loans and to grow its SDLP (Senior Direct Lending Program) joint venture, which Moody's regards as less volatile investments. The execution and timing associated with the portfolio repositioning are key risks of the proposed transaction. Positive aspects of the transaction include ARCC's potential to enhance its competitive positioning in middle-market lending due to its increased scale and capital access, improved portfolio and revenue diversification, and good prospects for accretive effects on earnings and, eventually, net asset value. As of the date of the announcement, the pro forma combined entity will have 385 portfolio companies, compared to 220 and 171 as of March 31st for ARCC and ACAS, respectively. Moody's expects that the transaction will reduce top ten borrower concentrations for the combined entity. ARCC expects to derive cost synergies from the combination with ACAS, but the timing and extent of the savings are yet to be determined. To help advance the integration of the two companies, Ares Management will forego up to $100 million of earned income-based fees over ten consecutive quarters following the transaction closing. The proposed transaction has the potential to reduce the probability of default for ACAS creditors because ARCC is a higher-rated firm that performed substantially better through the last credit cycle. During its review of ACAS' ratings, Moody's will assess ARCC's progress toward consummating the acquisition of ACAS and repaying ACAS' outstanding debt. After the debt is repaid, Moody's intends to withdraw the ACAS ratings. Moody's could stabilize ARCC's ratings if the company completes the ACAS integration in a timely and efficient manner, significantly pivots the ACAS portfolio toward less risky investments, enhances funding access and liquidity, and maintains capital strength. Moody's could downgrade ARCC's ratings if leverage or asset coverage of the combined entity weakens, if the post-transaction portfolio maintains a significantly higher concentration in junior securities, or if liquidity declines. A summary of the action follows: Ares Capital Corporation: Corporate Family: affirmed at Ba1 Allied Capital Corporation: Senior Unsecured (Domestic): affirmed at Ba1 American Capital, Ltd: Corporate Family: B2 rating placed on review for upgrade Senior Secured Bank Credit Facility (Domestic): B2 rating placed on review for upgrade Senior Unsecured (Domestic): B3 rating placed on review for upgrade Ares Capital Corporation is a business development company based in New York with total assets of $9.4 billion at March 31, 2016. American Capital, Ltd., based in Bethesda, Maryland, is business development company that invests in middle market businesses and manages alternative asset funds with total assets of $5.5 billion at March 31, 2016. The principal methodology used in these ratings was Finance Companies published in October 2015. ARMADA WATER: Files for Chapter 11 Bankruptcy to Reorganize ----------------------------------------------------------- Armada Water Assets, Inc., and certain of its subsidiaries sought creditor protection by filing Chapter cases in the U.S. Bankruptcy Court for the Southern District of Texas on May 23, 2016. The Debtors estimated liabilities of $25 million, which include $6 million in trade debt and dozens of smaller promissory notes, many from shareholders, and assets in the range of $10 million to $50 million. Headquartered in Houston, Texas, Armada Water, through its subsidiaries, provides water supply, collection, and remediation services and water treatment solutions to oil and gas industry in the United States. According to documents filed with the Court, Armada filed a Form S-1 registration statement with the Securities and Exchange Commission to become a public company. However, the oil downturn effectively ended Armada's ability to cash flow positively, which prompted it to withdraw its public filing. After borrowing money to make up for negative cash flow, Armada finally ran out of available sources of cash in March of 2016. The Debtors were unable to borrow more money, or make payments on existing debt. In April 2016, Armada was locked out by a landlord. To preserve value, Armada laid-off a substantial number of employees and reduced operations to core personnel. The Debtors intend to file a reorganization plan that would permit a "shrink to core" strategy involving maintenance of the core business of water treatment. Armada said it is now focusing on preserving long-term value and promising new technology. "The purpose of the chapter 11 [filing] is to sell nonessential assets, shrink to a core business that can be sustained, recapitalize the company with new money, and emerge with a lower debt burden, exchanging unsecured debt for shares of the reorganized debtor and a pool of cash from the liquidation of unencumbered assets," said Tom Breen, chief restructuring officer of the Debtors. To facilitate the bankruptcy filing, pre-bankruptcy lenders (including Harrington Global) made a small prepetition advance of $161,000 ($57,000 of which was garnished by a creditor), with the bulk of the $1 million needed for a reorganization to be funded as a secured DIP Loan. The facilitating loan was funded on May 2, 2016. Contemporaneously with the petitions, the Debtors filed first day motions seeking authority to, among other things, implement notice procedures, obtain DIP financing, pay employee obligations and use existing cash management system. Armada Water's debtor affiliates are Wes-Tex Vacuum Service, Inc., Summit Holdings, Inc., Barstow Production Water Solutions, LLC, Devonian Acquisition Corporation, Western Slope Acquisition Corporation, Summit Energy Services, Inc., ORL Equipment LLC and Harley Dome 1, LLC. McKool Smith PC represents the Debtors as counsel. The cases are pending joint administration before Judge David R Jones under proposed Lead Case No. 16-60056. ASHLEY I LLC: Hires Cedarview Projects as Environmental Manager --------------------------------------------------------------- Ashley I, LLC, and Ashley II of Charleston, LLC, ask for permission from the U.S. Bankruptcy Court for the District of South Carolina to employ Cedarview Projects, Inc., as its environmental manager for the Debtors estates. Ashley II has requested that the Firm perform analysis and possible testing work on the Ashley II portions of the Columbia Nitrogen Comprehensive Environmental Response, Compensation and Liability Act Site. The Firm estimates the cost of its services will not to exceed $60,000 as invoiced by Firm and approved by the Court. The Debtors started acquiring real estate in 2002 for the purpose of developing a multi-use real estate development as a proposed urban infill project along the Ashley River in the Neck area of Charleston and North Charleston, South Carolina. The Columbia nitrogen site is the only parcel where Ashley II was unable to secure former owners or operators' assistance with remediation prior to acquisition. The United States Environmental Protection Agency previously designated the former Columbia Nitrogen Parcel, which is approximately 33 acres of real property, as the Columbia Nitrogen Superfund Site, adjacent to the Ashley River. Ashley II owns 30.67 acres of the site, Robin W. Hood, II owns two acres, which are leased to Robin Hood Container Express; and a roadway or road right-of-way over 1.28 acres of the Site is owned by the City of Charleston. Ashley II's ownership of the Columbia Nitrogen Parcel has spawned years of both federal and state court litigation. The federal litigation remains ongoing at the Petition Date. Although the parties could not agree on the scope of remediation work to be done on this parcel, the EPA imposed a Unilateral Administrative Order on the Columbia Nitrogen Property. A Removal Action Work Plan and a Removal Action Completion Report were prepared which identified contaminant specific cleanup levels to an "industrial use" level. The highest and best use of the Columbia Nitrogen Property, and the use consistent with the zoning approval by the City of Charleston is for mixed commercial and residential use. Ashley II has determined that it needs to perform additional testing to ascertain what work, if any, needs to be done to develop a second RAWP so as to take the Columbia Nitrogen Property from "industrial" to "residential" use levels. Unfortunately, the pre-petition environmental litigation halted the Debtors' ability to fund further cleanup and development of the Ashley I and Ashley II properties, and the Debtors sought chapter 11 protection and seek court approved sales of their properties to ensure future cleanup and development of these properties to the great benefit of the Charleston community. Scott R. Freeman, P.E., President of the Firm, assures the Court that the Firm doesn't hold nor represent an interest adverse to the Debtors or their estates and that the Firm is a disinterested person as that term is defined in U.S.C. Section 101(14). The Firm can be reached at: Scott R. Freeman Cedarview Projects, Inc. 7 Sanborn Lane Reading, Massachusetts 01867 Tel: (781) 944-8079 About Ashley I Ashley I, LLC, and and Ashley II of Charleston, LLC, sought protection under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the District of South Carolina (Charleston) (Case No. 16-00559) on Feb. 8, 2016. The petition was signed by Prodel, LLC manager. The Debtor is represented by William McCarthy, Jr., Esq., William Harrison Penn, Esq., and Daniel J. Reynolds, Jr., Esq., at McCarthy Law Firm, LLC. The case is assigned to Judge David R. Duncan. The Debtor disclosed total assets of $5.17 million and total debts of $18.71 million. ASPECT SOFTWARE: Schedules $88.1M in Assets, $825.5M in Debt ------------------------------------------------------------ Aspect Software, Inc., disclosed $88,057,943 in assets and $825,509,600 in liabilities in its schedules of assets and liabilities: Name of Schedule Assets Liabilities ---------------- ------ ----------- A. Real Property $0 B. Personal Property $88,057,943 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $809,908,683 E. Creditors Holding Unsecured Priority Claims $435 F. Creditors Holding Unsecured Non-priority Claims $15,600,482 -------------- -------------- TOTAL $88,057,943 $825,509,600 A copy of the company's schedules is available without charge at https://is.gd/8T3Knd About Aspect Software Parent 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. Lead Case No. 16-10597) on March 9, 2016. Robert Krakauer signed the petitions as executive vice president and chief financial officer. The Debtors are represented by Domenic E. Pacitti, Esq., and Michael W. Yurkewicz, Esq., at Klehr Harrison Harvey Branzburg LLP, in Wilmington, Delaware; Morton Branzburg, Esq., at Klehr Harrison Harvey Branzburg LLP, in Philadelphia, Pennsylvania; and Joshua A. Sussberg, P.C., Esq., and Aparna Yenamandra, Esq., at Kirkland & Ellis LLP, in New York; and James H.M. Sprayregen, P.C., Esq., and William A. Guerrieri, Esq., at Kirkland & Ellis LLP, in Chicago, Illinois. The Debtors also tapped Alix Partners, LLP as financial advisor, Jefferies LLC as investment banker and Prime Clerk LLC as claims, notice, and balloting agent. 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. ATLANTIC & PACIFIC: Hires PwC LLP as Tax Consultants ---------------------------------------------------- The Great Atlantic & Pacific Tea Company, Inc., and its debtor-affiliates seek permission from the U.S. Bankruptcy Court for the Southern District of New York to employ PricewaterhouseCoopers LLP as tax consultants to the Debtors, nunc pro tunc to February 1, 2016. The Debtors require PwC to: a. assist with computation of gain or loss on sale of assets and asses whether any planning strategies exist to minimize the state tax burden; b. assist with reviewing claims submitted by taxing authorities; and c. provide other federal and state tax matters as requested. PwC will be paid at these hourly rates: Partner $856-$1,100 Director $688-$884 Manager $551-$709 Senior Associate $436-$560 Associate $310-$398 PwC will also be reimbursed for reasonable out-of-pocket expenses incurred. Hardeo Bissoondial, partner as PricewaterhouseCoopers 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. PwC may be reached at: Hardeo Bissoondial, Esq. PricewaterhouseCoopers LLP 400 Campus Drive Florham Park, NJ 07932 Tel.: (973)236-4818 Fax: (813)329-5217 E-mail: hardeo.bissoondial@pwc.com About Atlantic & Pacific   Based in Montvale, New Jersey, The Great Atlantic & Pacific Tea Company, Inc., and its affiliates are one of the nation’s oldest leading supermarket and food retailers, operating approximately 300 supermarkets, beer, wine, and liquor stores, combination food and drug stores, and limited assortment food stores across six Northeastern states. The primary retail operations consist of supermarkets operated under a variety of well known trade names, or "banners," including A&P, Waldbaum's, SuperFresh, Pathmark, Food Basics, The Food Emporium, Best Cellars, and A&P Liquors. The Company employs approximately 28,500 employees, over 90% of whom are members of one of twelve local unions whose members are employed by the Debtors under the authority of 35 separate collective bargaining agreements.   Then with 429 stores, A&P and its affiliates filed Chapter 11 petitions (Bankr. S.D.N.Y. Case No. 10-24549) on Dec. 12, 2010, and in 2012 emerged from Chapter 11 bankruptcy as a privately held company with 320 supermarkets.   On July 19, 2015, with 300 stores, A&P and 20 affiliated debtors each filed a Chapter 11 petition (Bankr. S.D.N.Y.) after reaching deals for the going concern sales of 120 stores. The Debtors are seeking joint administration under Case No. 15-23007.   As of Feb. 28, 2015, the Debtors reported total assets of $1.6 billion and liabilities of $2.3 billion.   The Debtors tapped Weil, Gotshal & Manges LLP as counsel, Evercore Group L.L.C., as investment banker, FTI Consulting, Inc., as financial advisor, Hilco Real Estate, LLC, as real estate advisor, and Prime Clerk LLC, as claims and noticing agent.   Judge Robert D. Drain of the U.S. Bankruptcy Court for the Southern District of New York issued an order directing joint administration of the Chapter 11 cases of The Great Atlantic & Pacific Tea Company, Inc., and its debtor affiliates under Lead Case No. 15-23007. B & B REAL ESTATE: Taps Philip W. Stock as Bankruptcy Counsel ------------------------------------------------------------- B & B Real Estate General Partnership asks for authorization from the U.S. Bankruptcy Court for the Middle District of Pennsylvania to employ Philip W. Stock as bankruptcy counsel. Mr. Stock will provide these services: a. providing the Debtor-in-Possession with legal advice with respect to its powers and duties as Debtor-in-Possession in the continued operation of its business and management of its duties; b. preparing the necessary applications, petitions, pleadings, briefs, memoranda and such other documents and reports as may be required; c. representing the Debtor-in-Possession at the initial Debtor interview and at the meeting of creditors; d. representing the Debtor-in-Possession at all hearings and adversary proceedings; e. representing the Debtor-in-Possession in its dealings with its creditors; f. representing the Debtor-in-Possession in providing legal services required to negotiate, draft and implement a Plan and Disclosure Statement; and g. performing all other legal services for the Debtor-in- Possession which may be necessary in connection with the Chapter 11 bankruptcy. Mr. Stock will be paid $250 per hour for his services. In this regard, the Debtor-in-Possession has provided to Mr. Stock a retainer of $3,000 for post-petition representation, plus a filing fee of $1,717, the retainer of which is held in the trust account of Mr. Stock. The Debtor paid Mr. Stock an additional $4,500 in connection with legal representation, since March of 2016, in an attempt to limit or completely avoid the filing of a bankruptcy for this Debtor and a bankruptcy for a related entity. Mr. Stock assures the Court that he has no connection with the Debtor or any conflicts with its creditors, other parties-in-interest, their respective attorneys and accountants, the U.S. Trustee or any person employed in the Office of the U.S. Trustee, and that he has not acted as general counsel for the Debtor prior to representation with regard to this case with the exception of the pre-filing legal representation in connection with the attempt to avoid or limit the need to file this Chapter 11 case or a Chapter 11 case in connection with a related entity. Scotrun, Pennsylvania-based B & B Real Estate General Partnership filed for Chapter 11 bankruptcy protection (Bankr. M.D. Pa. Case No. 16-02183) on May 23, 2016, listing $1.51 million in total assets and $2.01 million in total liabilities. The petition was signed by Robert C. Bishop, general partner. Judge Robert N. Opel II presides over the case. Philip W. Stock, Esq., at the Law Office of Philip W. Stock serves as the Debtor's bankruptcy counsel. BACK9NETWORK INC: Seeks June 30 Extension of DIP Maturity Date -------------------------------------------------------------- Back9Network, Inc., and Swing by Swing Golf, Inc., ask the Bankruptcy Court to modify the Final DIP Order to provide that the maturity date of the DIP Loan Obligations is extended to June 30, 2016. While the Debtors do not anticipate having to borrow additional funds prior to June 30, 2016 the Debtors anticipate filing of a consensual plan and disclosure statement. Accordingly, the Debtors believe it is in the best interests of the Estate and its creditors to allow the Debtors to proceed with the proposed plan. The Court has scheduled a hearing on the Debtor's Motion to be held on June 1, 2016. Back9Network, Inc. and Swing by Swing Golf, Inc. are represented by: William S. Fish, Jr., Esq. Thomas J. Farrell, Esq. HINCKLEY, ALLEN & SNYDER LLP 20 Church Street, 18th Floor Hartford, CT 06103-1221 Telephone: 860-725-6200 Email: wfish@hinckleyallen.com tfarrell@hinkleyallen.com About Back9Network Back9Network Inc. and Swing by Swing Golf, Inc., engaged in the business of developing and selling media content and information over the internet, filed Chapter 11 bankruptcy petitions (Bankr. D. Conn. Case Nos. 15-22192 and 15-22193, respectively) on Dec. 23, 2015. The petition was signed by Charles Cox, the chief executive officer. The Debtors estimated assets and liabilities of $10 million to $50 million. The Debtors have engaged Hinckley, Allen & Snyder LLP as counsel. Judge Ann M. Nevins has been assigned the cases. BASIC ENERGY: Stockholders Elect 3 Class III Directors ------------------------------------------------------ Basic Energy Services, Inc., held its annual meeting of stockholders on May 19, 2016, at which the stockholders: (1) elected William E. Chiles, Robert F. Fulton and Antonio O. Garza, Jr. as Class II directors to serve until the annual meeting of stockholders in 2019; (2) approved an amendment to the 2003 Incentive Plan to increase the number of shares of common stock authorized for issuance thereunder by 1,000,000 shares from 11,350,000 shares to 12,350,000 shares; (3) approved, on a non-binding advisory basis, the named executive officer compensation; and (4) ratified the appointment of KPMG LLP as the Company's independent auditor for fiscal year 2016. A total of 35,485,737 shares of the Company's common stock were present at the meeting in person or by proxy, which represented approximately 83% of the outstanding shares of the Company's common stock as of March 24, 2016, the record date for the Annual Meeting. 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. "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 of March 31, 2016, Basic Energy had $1.16 billion in total assets, $1.14 billion in total liabilities and $25.20 million in total stockholders' equity. * * * 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 on 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. BEAR CREEK: Files List of Largest Unsecured Creditors ----------------------------------------------------- Bear Creek Partners II, LLC, disclosed in a filing with the U.S. Bankruptcy Court for the Western District of Michigan its creditors holding the largest unsecured claims. The unsecured creditors are: Creditors Nature of the Claim Amount --------- ------------------- ------ Bear creek Township Utilities $14,652 Sherwin Williams Company Accounts Payable $11,815 District Credit Office Dan Zehr Painting Inc. Accounts Payable $10,000 City of Petoskey Utilities $9,483 Great Lakes Energy Utilities $3,239 DTE Energy Utilities $1,060 American Waste Inc. Utilities $792 AT&T Utilities $362 A copy of the unsecured creditors' list is available without charge at https://is.gd/oT5FOX About Bear Creek Partners Bear Creek Partners II, L.L.C. and Bear Creek Retail Partners II LLC filed separate Chapter 11 petitions (Bankr. W.D. Mich. Case Nos. 16-02553 and 16-02554) on May 6, 2016. Hon. John T. Gregg presides over the cases. The Debtors are represented by Jay L. Welford, Esq., at JAFFE, RAITT, HEUER & WEISS, PC; and Robert R. Wardrop, Esq., at WARDROP & WARDROP PC, as counsel. Each of Bear Creek Partners II and Bear Creek Retail Partners estimated $10 m illion to $50 million in both assets and liabilities. The petitions were signed by Scott A. Chappelle, president. BILL BARRETT: Stockholders Elect Six Directors ---------------------------------------------- At Bill Barrett Corporation's annual meeting of shareholders held on May 17, 2016, the shareholders: (a) elected Jim W. Mogg, William F. Owens, Edmund P. Segner, III, Randy I. Stein, Michael E. Wiley and Scot R. Woodall to the Company's Board of Directors to hold office until the annual meeting of shareholders to be held in the year 2017 and thereafter until their successors are duly elected and qualified; (b) approved an advisory (non-binding) resolution regarding the compensation of the Company's named executive officers; (c) approved the Company's Cash Incentive Plan; and (d) ratified Deloitte & Touche, LLP as the Company's independent registered public accounting firm for the year ending Dec. 31, 2016. Prior to the Annual Meeting, the Compensation Committee of the Board had taken the following actions regarding the company's 2016 compensation structure, many of which proactively addressed concerns that were later expressed by certain proxy advisory services regarding our 2015 compensation structure. For example, the Compensation Committee reduced the value of the 2016 Long-Term Incentive awards for the Company's NEOs by 10 - 20%. The Compensation Committee also reduced non-employee director compensation, for the combined cash and equity retainer, by 15%. Each of these actions addressed concerns that were later expressed regarding pay increases in a time of decreasing stock price. In addition, the Compensation Committee had approved changes to the Company's 2016 performance-vested Long-Term Incentive awards such that (i) the sole performance metric for the 2016 performance-vested awards is Total Shareholder Return (TSR) measured on both an absolute and relative basis against our peers, with payout dependent upon achievement of demanding absolute and relative TSR goals, and (ii) none of the performance-vested awards will vest if the company's TSR across the performance period of 2016-2018 is negative. These changes addressed concerns that were later expressed regarding the rigor of the performance metrics for the Company's 2015 performance-based Long-Term Incentive awards. Certain of the foregoing actions were approved by the Board if required by the Compensation Committee charter. Immediately following the shareholder vote electing the named directors to the Board, the Board met and adopted a resolution reducing the size of the Board from eight members to six members, five of which will be independent directors. About Bill Barrett Bill Barrett Corporation is an independent energy company that develops, acquires and explores for oil and natural gas resources. All of the Company's assets and operations are located in the Rocky Mountain region of the United States. Bill Barrett reported a net loss of $488 million in 2015 following net income of $15.08 million in 2014. As of March 31, 2016, Bill Barrett had $1.44 billion in total assets, $938.23 million in total liabilities and $506 million in total stockholders' equity. BIOLIFE SOLUTIONS: Walter Villiger Reports 40.1% Stake as of May 19 ------------------------------------------------------------------- Walter Villiger and WAVI Holding AG jointly filed with the Securities and Exchange Commission an amended Schedule 13D disclosing beneficial ownership of BioLife Solutions, Inc.'s common shares. On May 12, 2016, WAVI and BioLife entered into the Commitment Letter, whereby WAVI has agreed to make a series of four $1 million advances on June 1, 2016, Sept. 1, 2016, Dec. 1, 2016, and March 1, 2017. Pursuant to the Commitment Letter, on May 12, 2016, the Issuer made a promissory note in favor of WAVI for the principal amount of all Advances under the Note, which will not exceed an aggregate principal amount of $4 million. The promissory note is unsecured, carries an annual interest rate of 10% and matures on June 1, 2017. As partial consideration for entering into the Commitment Letter, the Issuer issued the Warrant to purchase up to 550,000 shares of the Issuer's common stock to WAVI. As of May 19, 2016, Mr. Villiger beneficially owns 6,074,714 shares of the Issuer, consisting of 3,604,646 shares of common stock held indirectly through WAVI, 142,857 shares of common stock issuable upon exercise of warrants held directly, and 2,327,211 shares of common stock issuable upon exercise of warrants held indirectly through WAVI. Those shares represent a total of 40.1% of the Issuer's outstanding shares of common stock. As of May 19, 2016, WAVI beneficially owns 5,931,857 shares of the Issuer, consisting of 3,604,646 shares of common stock held indirectly through WAVI, and 2,327,211 shares of common stock issuable upon exercise of warrants held indirectly through WAVI. Such shares represent a total of 39.5% of the Issuer's outstanding shares of common stock. A copy of the regulatory filing is available for free at: https://is.gd/oIaDHl About BioLife Solutions Bothell, Washington-based BioLife Solutions, Inc., develops and markets patented hypothermic storage and cryo-preservation solutions for cells, tissues, and organs, and provides contracted research and development and consulting services related to optimization of biopreservation processes and protocols. BioLife reported a net loss of $4.99 million on $6.44 million of product sales for the year ended Dec. 31, 2015, compared to a net loss of $3.30 million on $6.19 million of product sales for the year ended Dec. 31, 2014. As of March 31, 2016, Biolife had $10.8 million in total assets, $2.24 million in total liabilities and $8.52 million in totla shareholders' equity. BONANZA CREEK: Has Borrowing Base Deficiency of $88 Million ----------------------------------------------------------- The spring 2016 semi-annual borrowing base redetermination of the Credit Agreement, dated March 29, 2011, of Bonanza Creek Energy, Inc., was completed on May 20, 2016, according to a regulatory filing with the Securities and Exchange Commission. The Borrowing Base under the Credit Agreement was reduced from $475 million to $200 million, which amount will remain in effect until it is redetermined or adjusted in accordance with the Credit Agreement and will continue to be secured by certain of the Company's Oil and Gas Properties. As of May 20, 2016, the Company had $288 million in borrowings outstanding under the Credit Agreement and no outstanding letters of credit. As a result of this May 2016 redetermination, the Company now has a Borrowing Base Deficiency of $88 million. The Company received notice of this deficiency on May 20, 2016 (the "Deficiency Notice Date"). The Company is currently in compliance with all of the Credit Agreement's financial and non-financial covenants. Under the terms of the Credit Agreement, the Company must pursue one of the following options to address the Borrowing Base Deficiency: (A) within 20 days after the Deficiency Notice Date, deliver to the Administrative Agent written notice of the Company's election to repay Advances such that the Borrowing Base Deficiency is cured within 30 days after the Deficiency Notice Date; (B) pledge, within 30 days after the Deficiency Notice Date, additional Oil and Gas Properties acceptable to the Lenders, which the Lenders deem sufficient in their sole discretion to eliminate the Borrowing Base Deficiency; (C) within 20 days after the Deficiency Notice Date, deliver to the Administrative Agent written notice of the Company's election to repay Advances in six monthly installments equal to one-sixth of the Borrowing Base Deficiency, with the first such installment due 30 days after the Deficiency Notice Date and each following installment due 30 days after the preceding installment; or (D) within 20 days after the Deficiency Notice Date, deliver to the Administrative Agent written notice of the Company's election to combine the options in clause (B) and (C) above, and indicating the amount to be repaid in installments and the amount to be provided as additional Collateral. About Bonanza Creek Bonanza Creek is an independent energy company engaged in the acquisition, exploration, development and production of onshore oil and associated liquids-rich natural gas in the United States. Bonanza Creek Energy, Inc. was incorporated in Delaware on Dec. 2, 2010, and went public in December 2011. Bonanza Creek reported a net loss of $745.54 million on $292.67 million of oil and gas sales for the year ended Dec. 31, 2015, compared to net income of $20.28 million on $558.63 million of oil and gas sales for the year ended Dec. 31, 2014. As of March 31, 2016, Bonanza had $1.42 billion in total assets, $1.25 billion in total liabilities and $165 million in total stockholders' equity. * * * 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 company Bonanza Creek Energy Inc. to 'CCC' from 'B-'. The outlook is negative. Bonanza Creek carries a B2 corporate family rating from Moody's Investors Service. BRIDGEWERKS CONSTRUCTION: Hires Gary W. Short as Attorney --------------------------------------------------------- Bridgewerks Construction, LLC seeks permission from the U.S. Bankruptcy Court for the Western District of Pennsylvania to employ Gary W. Short as Attorney. The Debtor requires Mr. Short to represent the Debtor in all legal matters relating to this Chapter 11 bankruptcy proceeding. Mr. Short will be paid at $350 per hour. Prior to the filing of this case, Mr. Short have received $180 for a retainer for the case and $1,1820 for pre-petition legal services. Gary W. Short, Esq., 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. Gary W. Short may be reached at: Gary W. Short 212 Windgap Road Pittsburgh, PA 15237 Tel: (412)765-0100 Fax: (412)536-3977 E-mail: garyshortlegal@gmail.com Bridgewerks Construction, LLC filed a Chapter 11 petition (Bankr. W.D. Pa. Case No. 16-21757) on May 9, 2016. BUDD CO: Court Substantially Reduces Proskauer's Atty Fees ---------------------------------------------------------- Judge Jack B. Schmetterer of the U.S. Bankruptcy Court for the Northern District of Illinois, Eastern Division, reduced the fees of Proskauer Rose LLP as counsel for The Budd Company, Inc., holding that the work done by the counsel during the time period was useless work. The court said Debtor sought a total of $131,500 for the period August 3 to November 30, 2015, for unnecessary work of re-writing the Disclosure Statement, which is not yet finished and was not at all useful either at the time or in retrospect. During this same period of time, the UAW counsel -- the lead party attacking the Disclosure Statement -- billed only $10,459 by raising objections. The UAW thereby played the Debtor's counsel into a drafting exercise that was useless and extravagant, Judge Schmetterer. Judge Schmetterer further held, "Allowing 50% of the fees thereby sought for such useless work would be generous. The Fee Examiner reduced fees on this work by 15%. The Court will further reduce by an additional 35%. Further fee applications by the Debtor and other parties will be reviewed similarly as to work on the Disclosure Statement drafting." A full-text copy of Judge Schmetterer's Opinion dated May 23, 2016, is available at http://bankrupt.com/misc/BUDD18460523.pdf About The Budd Co. Inc. The Budd Company, Inc., a former supplier to the automotive industry, filed for chapter 11 bankruptcy protection (Bankr. N.D. Ill. Case No. 14-11873) on March 31, 2014, with a deal to settle potential claims against its parent, ThyssenKrupp AG. The company -- which ceased manufacturing operations in 2006 and does not have any current employees, facilities or customers -- has obligations consisting largely of medical and other benefits to approximately 10,000 former employees. Liabilities amount to approximately $1 billion with assets of approximately $400 million. Most of the debt consists largely of medical and other benefits to approximately 10,000 former employees. The Debtor disclosed $387,555,681 in assets and $1,107,350,034 in liabilities as of the Chapter 11 filing. The Hon. Jack B. Schmetterer oversees the case. The Debtor has tapped Proskauer Rose LLP as Chapter 11 counsel, Dickinson Wright PLLC as special counsel, Epiq Bankruptcy Solutions, LLC as noticing, claims and balloting agent, and Conway MacKenzie Management Services, LLC's Charles M. Moore as CRO. The U.S. Trustee appointed five individuals to serve on the Committee of Executive & Administrative Retirees. The Segal Company (Eastern States), Inc. serves as the Committee's actuarial consultant. The Committee retained Solic Capital Advisors, LLC as its financial advisor. Reed Heiligman, Esq., at FrankGecker LLP, in Chicago, Illinois, represents the ad hoc committee of asbestos personal injury claimants. BULOVA TECHNOLOGIES: Incurs $1.37 Million Net Loss in 2nd Quarter ----------------------------------------------------------------- Bulova Technologies Group, Inc., filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $1.37 million on $4.98 million of revenues for the three months ended March 31, 2016, compared to a net loss of $2.20 million on $486,286 of revenues for the three months ended March 31, 2015. For the six months ended March 31, 2016, the Company reported a net loss of $3.77 million on $5.40 million of revenues compared to a net loss of $3.21 million on $961,000 of revenues for the same period in 2015. As of March 31, 2016, Bulova had $19.03 million in total assets, $41.7 million in total liabilities and a total shareholders' deficit of $22.7 million. A full-text copy of the Form 10-Q is available for free at: https://is.gd/eHEsvl About Bulova Bulova Technologies Group, Inc. was originally incorporated in Wyoming in 1979 as "Tyrex Oil Company". During 2007, the Company divested itself of all assets and previous operations. During 2008, the Company filed for domestication to the State of Florida, and changed its name to Bulova Technologies Group, Inc. and changed its fiscal year from June 30 to September 30. Bulova reported a net loss of $5.26 million for the year ended Sept. 30, 2015, compared to a net loss of $3.76 million for the year ended Sept. 30, 2014. CAESARS ENTERTAINMENT: Stockholders Elect 3 Directors ----------------------------------------------------- At the annual meeting of Caesars Entertainment Corporation's stockholders held May 18, 2016, the stockholders: (1) elected Jeffrey Benjamin, Lynn Swann and Fred Kleisner as Class I directors to serve until the 2019 annual meeting of stockholders of the Company or until their successors are elected and qualified; (2) adopted an advisory resolution to approve executive compensation; (3) ratified the appointment of Deloitte & Touche LLP as the Company's independent registered public accounting firm for the year ending Dec. 31, 2016; (4) approved an amendment to the 2012 Plan to increase by 7,500,000 the number of shares of the Company's common stock, par value $0.01 per share, that may be issued under the 2012 Plan; and (5) approved the Senior Executive Incentive Plan. About Caesars Entertainment Caesars Entertainment Corp., formerly Harrah's Entertainment Inc., is one of the world's largest casino companies. Caesars casino resorts operate under the Caesars, Bally's, Flamingo, Grand Casinos, Hilton and Paris brand names. The Company has its corporate headquarters in Las Vegas. Harrah's announced its re-branding to Caesar's in mid-November 2010. In January 2015, Caesars Entertainment and subsidiary Caesars Entertainment Operating Company, Inc., announced that holders of more than 60% of claims in respect of CEOC's 11.25% senior secured notes due 2017, CEOC's 8.5% senior secured notes due 2020 and CEOC's 9% senior secured notes due 2020 have signed the Amended and Restated Restructuring Support and Forbearance Agreement, dated as of Dec. 31, 2014, among Caesars Entertainment, CEOC and the Consenting Creditors. As a result, The RSA became effective pursuant to its terms as of Jan. 9, 2015. Appaloosa Investment Limited, et al., owed $41 million on account of 10% second lien notes in the company, filed an involuntary Chapter 11 bankruptcy petition against CEOC (Bankr. D. Del. Case No. 15-10047) on Jan. 12, 2015. The bondholders are represented by Robert S. Brady, Esq., at Young, Conaway, Stargatt & Taylor LLP. CEOC and 172 other affiliates -- operators of 38 gaming and resort properties in 14 U.S. states and 5 countries -- filed Chapter 11 bankruptcy petitions (Bank. N.D. Ill. Lead Case No. 15-01145) on Jan. 15, 2015. CEOC disclosed total assets of $12.3 billion and total debt of $19.8 billion as of Sept. 30, 2014. Delaware Bankruptcy Judge Kevin Gross entered a ruling that the bankruptcy proceedings will proceed in the U.S. Bankruptcy Court for the Northern District of Illinois. Kirkland & Ellis serves as the Debtors' counsel. AlixPartners is the Debtors' restructuring advisors. Prime Clerk LLC acts as the Debtors' notice and claims agent. Judge Benjamin Goldgar presides over the cases. The U.S. Trustee has appointed seven noteholders to serve in the Official Committee of Second Priority Noteholders and nine members to serve in the Official Unsecured Creditors' Committee. The U.S. Trustee appointed Richard S. Davis as Chapter 11 examiner. CANCER GENETICS: Has Direct Offering of $5 Million Common Shares ---------------------------------------------------------------- Cancer Genetics, Inc., announced that it has entered into definitive agreements with healthcare focused institutional investors for an offering of shares of common stock with gross proceeds of approximately $5 million in a registered direct offering. Concurrently in a private placement, for each share of common stock purchased by an investor, such investor will receive from the Company an unregistered warrant to purchase one-half of a share of common stock. The warrants have an exercise price of $2.25 per share, will be exercisable six months from the date of issuance, and will expire five years from the initial exercise date. The closing of the offering is expected to take place on or about May 25, 2016, subject to the satisfaction of customary closing conditions. The Company's Chairman purchased $700,000 of the securities at market price, $2.2025 per combination of shares and warrants. Rodman & Renshaw, a unit of H.C. Wainwright & Co., LLC, acted as the exclusive placement agent in connection with this offering. Net proceeds from the offering are expected to be approximately $4,500,000. Cancer Genetics intends to use the net proceeds from the offering for general corporate purposes. The shares of common stock described above (but not the warrants or the shares of common stock underlying the warrants) are being offered pursuant to a shelf registration statement (File No. 333-196374). Those shares of common stock may be offered only by means of a prospectus, including a prospectus supplement, forming a part of the effective registration statement. The warrants and the shares of common stock underlying the warrants to be issued in the offering have not been registered under the Securities Act of 1933, as amended, or applicable state securities laws. Accordingly, the warrants and underlying shares of common stock underlying the warrants may not be offered or sold in the United States except pursuant to an effective registration statement or an applicable exemption from the registration requirements of the Securities Act and such applicable state securities laws. About Cancer Genetics Rutherford, N.J.-based Cancer Genetics, Inc., is an early-stage diagnostics company focused on developing and commercializing proprietary genomic tests and services to improve and personalize the diagnosis, prognosis and response to treatment (theranosis) of cancer. Cancer Genetics reported a net loss of $20.2 million on $18.0 million of revenue for the year ended Dec. 31, 2015, compared to a net loss of $16.6 million on $10.2 million of revenue for the year ended Dec. 31, 2014. As of March 31, 2016, Cancer Genetics had $43.96 million in total assets, $15.7 million in total liabilities and $28.3 million in total stockholders' equity. CAPE COD COMMERCIAL: Taps Darmody Merlino as Accountant ------------------------------------------------------- Cape Cod Commercial Linen Service, Inc., and This Is It, LLC, seek permission from the U.S. Bankruptcy Court for the District of Massachusetts to employ A. Dennis Barbo, CPA, and Darmody, Merlino & Co., LLP, as accountant. The Debtor will need the services of a qualified accountant in order to comply with its obligations under the Bankruptcy Code, including but not limited to preparing and filing tax returns which are currently on extension. The Firm will be paid $125 to $320 per hour for its services. The Firm has previously provided accounting services to the Debtors, a portion of which remain unpaid, The Firm has agreed to waive any and all pre-petition claims it holds against the Debtor. A. Dennis Barbo, CPA, a partner at the Firm assures the Court that he and the Firm is a "disinterested person" as that term is defined in 11 U.S.C. Section 101(14). The Firm can be reached at: A. Dennis Barbo, CPA Partner Darmody, Merlino & Co., LLP 75 Federal Street, 15th Floor Boston, MA 02110 Tel: (617) 426-7300 ext. 352 Main Number: (617) 426-7300 Fax: 617-426-2245 E-mail: info@darmodymerlino.com Cape Cod Commercial Linen Service, Inc., based in Hyannis, Massachusetts, filed a Chapter 11 petition (Bankr. D. Mass. Case No. 16-11811) on May 13, 2016. Hon. Joan N. Feeney presides over the case. David B. Madoff, Esq., and Steffani Pelton Nicholson, Esq., at Madoff & Khoury LLP, serves as counsel to Cape Code Commercial. The Debtor's financial advisor is Bruce A. Erickson of B. Erickson Group, LLC. In its petition, the Debtor listed total assets of $1.24 million and liabilities of $4.62 million. The petition was signed by Jeffrey Ehart, president. This Is It, LLC, based in Hyannis, Mass., filed a Chapter 11 petition (Bankr. D. Mass. Case No. 16-11813) on May 13, 2016. Hon. Joan N. Feeney presides over the case. This Is It tapped David B. Madoff, Esq., and Steffani Pelton Nicholson, Esq., at Madoff & Khoury LLP, as bankruptcy counsel. In its petition, This Is It listed $2.20 million in assets and $3.05 million in liabilities. The petition was signed by Jeffrey Ehart, president/manager. This Is It and CCCLS have asked the Court to have their Chapter 11 cases jointly administered. CASPIAN SERVICES: Incurs $2.33 Million Net Loss in 2nd Quarter -------------------------------------------------------------- Caspian Services, Inc., filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $2.33 million on $2.45 million of total revenues for the three months ended March 31, 2016, compared to a net loss of $6.12 million on $2.66 million of total revenues for the same period in 2015. For the six months ended March 31, 2016, the Company reported a net loss of $19.14 million on $6.11 million of total revenues compared to a net loss of $8.99 million on $8.76 million of total revenues for the six months ended March 31, 2015. As of March 31, 2016, the Company had $33.38 million in total assets, $114.33 million in total liabilities, all current, and a total deficit of $80.94 million. At March 31, 2016, the Company had cash on hand of $1,096,000 compared to cash on hand of $1,372,000 at Sept. 30, 2015. At March 31, 2016, total current liabilities exceeded total current assets by $105,891,000. This was mainly attributable to the Balykshi and MOBY Loans, the put option and the Investor's Notes being classified as current liabilities. A full-text copy of the Form 10-Q is available for free at: https://is.gd/6v06QA About Caspian Services Headquartered in Salt Lake City, Caspian Services, Inc., was incorporated under the laws of the state of Nevada on July 14, 1998. Since February 2002 the Company has concentrated its business efforts to provide diversified oilfield services to the oil and gas industry in western Kazakhstan and the Caspian Sea, including providing a fleet of vessels, onshore, transition zone and marine seismic data acquisition and processing services and a marine supply and support base in the port of Bautino, in Bautino Bay, Kazakhstan. Caspian reported a net loss of $33.2 million on $16.4 million of total revenues for the year ended Sept. 30, 2015, compared to a net loss of $18.8 million on $29.9 million of total revenues for the year ended Sept. 30, 2014. Haynie & Company, P.C., in Salt Lake City, Utah, the Company's independent accounting firm, included a "going concern" qualification in its report on the consolidated financial statements for the year ended Sept. 30, 2015. CATHEDRAL PINES: Moody's Assigns Ba2 Rating on $4.95MM GO Bonds --------------------------------------------------------------- Moody's Investors Service has assigned an initial Ba2 to Cathedral Pines Metropolitan District's, CO $4.95 million General Obligation Refunding Bonds, Series 2016. The outlook is stable. The Ba2 rating assignment is based on the district's small tax base with favorable resident wealth indices, negative fund balance levels driven by large liabilities, and a high debt burden. Despite the unlimited taxing authority for debt repayment, the Ba2 also reflects the potential risk of diminishing the operating levy if debt service requires greater than 40 mills. The Ba2 rating further incorporates the speculative elements of the proposed debt restructuring, including the extension of the original maturities by nine years as well as the lack of a trustee. Rating Outlook The stable outlook reflects the expectation that the district's economy and assessed values will experience modest growth over the near term future given ongoing homebuilding. The outlook also incorporates the district's unfavorable General Fund balance position that is expected to remain negative over the forseeable future, which is not expected to materially impact overall operations. Factors that Could Lead to an Upgrade Significant tax base expansion coupled with reduction in the debt as a percent of the base Reduction of General Fund liabilities and demonstrated trend of adequate reserve levels Factors that Could Lead to a Downgrade Contraction of taxable assessed values leading to higher debt burden Large General Fund liability starts to affect annual operations of the district If overall millage cap and debt service levy needs prevent district from levying an operating tax rate Legal Security The bonds are general obligations of the district secured by a pledge of the full faith and credit of the district and payable from general ad valorem taxes which may be levied against all taxable property within the district without limitation of rate and in an amount sufficient to pay the bonds when due. Use of Proceeds The bonds will be used to refund a portion of the district's outstanding Series 2008 bonds (sinking fund payments 2018 through 2037). There is no economic savings associated with the refunding. Obligor Profile The district is a quasi-municipal corporation and a political subdivision of the State formed on November 8, 2004, for the purpose of providing street, safety protection, park and recreation and transportation improvements. The district contains approximately 765 acres of property approximately 15 miles northeast of the city center of the City of Colorado Springs, which is located in the southern portion of the Denver metropolitan area. Methodology The principal methodology used in this rating was US Local Government General Obligation Debt published in January 2014. CEETOP INC: Incurs $89,000 Net Loss in First Quarter ---------------------------------------------------- Ceetop Inc. filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $88,713 on $0 of sales for the three months ended March 31, 2016, compared to a net loss of $121,358 on $0 of sales for the same period in 2015. As of March 31, 2016, Ceetop had $3.21 million in total assets, $1.24 million in total liabilities, all current, and $1.96 million in total stockholders' equity. As of March 31, 2016, the Company had total current assets of $1,063,029 and total current liabilities of $1,247,438. The Company's cash flows from operating activities for the months ended March 31, 2016 resulted in cash used of $19,344. The Company's cash flow provided by financing activities for the three months ended March 31, 2016 was $18,252. The Company has a working capital deficiency of $184,409 and a shareholders' equity of $1,968,656 as of March 31, 2016. Primarily as a result of the Company's recurring losses and its lack of liquidity, the Company had received a report from its independent registered public accounting firm for its financial statements for the year ended December 31, 2015 that included an explanatory paragraph describing the uncertainty as to the Company's ability to continue as a going concern. A full-text copy of the Form 10-Q is available for free at: https://is.gd/DLFATS 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 reported a net loss of $599,847 on $0 of sales for the year ended Dec. 31, 2015, compared to a net loss of $1.41 million on $361,887 of sales for the year ended Dec. 31, 2014. The Company's auditors MJF& Associates, APC, 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 incurred recurring losses from operations, has a net loss of $599,847 and $1,415,949 for the years ended December 31, 2015 and 2014, respectively, and has accumulated deficit of $10,621,441 at December 31, 2015. CEETOP INC: Unit Sells Interest in Softview for $1.2 Million ------------------------------------------------------------ Guizhou Ceetop Group Holding Co., Limited, a subsidiary of Ceetop Inc., entered into an agreement whereby it sold its equity interest in Softview, with an original value of $1,317,968 (8,500,000 RMB), to Softview for $1,162,913 (7,500,000 RMB). The Purchase Price was payable as follows: offsetting by Softview of $1,007,858 (6,500,000 RMB) owed to it by GZ Ceetop , 500,000 RMB payable before March 1, 2017, and 500,000 RMB payable before May 1, 2017, respectively. 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 reported a net loss of $599,847 on $0 of sales for the year ended Dec. 31, 2015, compared to a net loss of $1.41 million on $361,887 of sales for the year ended Dec. 31, 2014. As of Dec. 31, 2015, Ceetop Inc. had $3.22 million in total assets, $1.16 million in total liabilities, all current, and $2.05 million in total stockholders' equity. The Company's auditors MJF& Associates, APC, 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 incurred recurring losses from operations, has a net loss of $599,847 and $1,415,949 for the years ended December 31, 2015 and 2014, respectively, and has accumulated deficit of $10,621,441 at December 31, 2015. CELTIC CONCEPTS: Case Summary & 20 Largest Unsecured Creditors -------------------------------------------------------------- Debtor: Celtic Concepts, Ltd. dba The Goose's Acre Bistro and Irish Pub dba The Goose's Acre 21 Waterway Ave., #140 The Woodlands, TX 77380 Case No.: 16-32610 Chapter 11 Petition Date: May 24, 2016 Court: United States Bankruptcy Court Southern District of Texas (Houston) Judge: Hon. Marvin Isgur Debtor's Counsel: Matthew Brian Probus, Esq. WAUSON & PROBUS One Sugar Creek Ctr Blvd, Ste 880 Sugar Land, TX 77478 Tel: 281-242-0303 Fax: 281-242-0306 E-mail: mbprobus@w-plaw.com Estimated Assets: $100,000 to $500,000 Estimated Liabilities: $1 million to $10 million The petition was signed by Brian Young, president of Ceana, LLC, general partner. A list of the Debtor's 20 largest unsecured creditors is available for free at http://bankrupt.com/misc/txsb16-32610.pdf CHAPARRAL ENERGY: Posts $138 Million Net Loss for March 31 Quarter ------------------------------------------------------------------ Chaparral Energy, Inc. filed with the Securities and Exchange Commission its Form 10-Q report for the quarterly period ended March 31, 2016. Chaparral posted a net loss of $138,406,000 for the quarter, compared to a net income of $4,248,000 for the same period a year ago. Revenues (commodity sales) were $48,239,000 for the quarter, compared to $93,079,000 for the same period a year ago. Chaparral sought Chapter 11 creditor protection earlier this month after electing on March 1 and April 1, 2016, not to make interest payments on its 8.25% Senior Notes and 9.875% Senior Notes, respectively. Under the indenture governing these Senior Notes, the failure to make the interest payments was subject to a 30-day grace period before constituting an event of default. The Company did not make either interest payment on the Senior Notes within their respective 30-day grace periods and as a result, are currently in default under the indentures governing these Senior Notes. As part of the restructuring efforts, the Company is negotiating a Restructuring Support Agreement with certain holders of its Senior Notes. The RSA contemplates that the holders of Senior Notes will convert their Senior Notes into equity of the reorganized Company, effectuated through a plan of reorganization in bankruptcy. The RSA also contemplates deadlines for the following bankruptcy related proceedings: (i) the filing of a plan and disclosure statement, (ii) a hearing to approve the disclosure statement and (iii) a confirmation hearing. The Company also is in negotiations with the agent for the lenders under the Credit Facility with respect to the treatment of their claims and certain other matters relating to a possible restructuring. At the time of filing of the Form 10-Q, no agreement has been reached regarding a restructuring of the Credit Facility or the Senior Notes, and there can be no assurances that such agreements will be reached. A copy of the SEC report is available at https://is.gd/kbc19F About Chaparral Energy 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. At March 31, 2016, the Company had total assets of $1,229,373,000, total current liabilities of $1,940,742,000 and total stockholders' deficit of $759,546,000. Chaparral Energy, Inc. and its 10 affiliates sought protection under Chapter 11 of the Bankruptcy Code in the District of Delaware (Lead Case No. 16-11144) on May 9, 2016. The petition was signed by Mark A. Fischer, chief executive officer. The Debtors are represented by Richard Levy, Esq., Keith Simon, Esq., David McElhoe, Esq., and Marc Zelina, Esq., at Latham & Watkins LLP; and Mark D. Collins, Esq., at Richards, Layton & Finger, P.A., as counsel. Kurtzman Carson Consultants LLC serves as administrative advisor. The Office of the U.S. Trustee on May 18 disclosed in a court filing that no official committee of unsecured creditors has been appointed in the Chapter 11 cases of Chaparral Energy, Inc. and its affiliates. CHC GROUP: Akin Gump Represents Ad Hoc Noteholder Group ------------------------------------------------------- Pursuant to Rule 2019 of the Federal Rules of Bankruptcy Procedure, the Ad Hoc Noteholder Group filed with the U.S. Bankruptcy Court for the Northern District of Texas a verified statement, saying that it has engaged Akin Gump Strauss Hauer & Feld LLP to represent it in connection with the potential restructuring of the Debtors. Akin Gump represents the Ad Hoc Noteholder Group in connection with the Debtors' Chapter 11 cases. Akin Gump does not represent or purport to represent any other entities in connection with these Chapter 11 cases. Akin Gump does not represent the Ad Hoc Noteholder Group as a committee and does not undertake to represent the interests of, and is not a fiduciary for, any creditor, party in interest, or entity other than the Ad Hoc Noteholder Group. In addition, the Ad Hoc Noteholder Group does not represent or purport to represent any other entities in connection with the Debtors' Chapter 11 cases. The members of the Ad Hoc Noteholder Group either hold claims or manage funds and accounts that hold claims against the Debtors' estates arising on account of the Senior Secured Notes, and certain members of the Ad Hoc Noteholder Group also hold claims on account of other debt issued by the Debtors. In accordance with Bankruptcy Rule 2019, members of the Ad Hoc Noteholder Group and "the nature and amount of all disclosable economic interests" in relation to the Debtors reported to Akin Gump are: a. AllianceBernstein L.P. 1345 Avenue of the Americas New York, NY 10105 Secured Notes: $123,098,400 Senior Unsecured Notes: $4,676,750 b. Bain Capital Credit, LP 200 Clarendon Street Boston, MA 02116 Secured Notes: $226,536,300 Revolving Facility: $29,990,000 c. Carl Marks Management Company 900 Third Avenue, 33rd Floor New York, NY 10022 Secured Notes: $65,716,200 d. Franklin Advisers, Inc. One Franklin Parkway, Building 970, 1st Floor San Mateo, CA 94403 Secured Notes: $167,639,400 Senior Unsecured Notes: $25,262,502 e. Tennenbaum Capital Partners 2951 28th Street, Suite 1000 Santa Monica, CA 90405 Secured Notes: $41,809,500 Additional holders of Senior Secured Notes may become members of the Ad Hoc Noteholder Group, and certain members of the Ad Hoc Noteholder Group may cease to be members in the future. The Ad Hoc Noteholder Group's attorneys can be reached at: Marty L. Brimmage, Jr., Esq. AKIN GUMP STRAUSS HAUER & FELD LLP 1700 Pacific Avenue, Suite 4100 Dallas, TX 75201-4624 Tel: (214) 969-2800 Fax: (214) 969-4343 E-mail: mbrimmage@akingump.com and Michael S. Stamer, Esq. Jason P. Rubin, Esq. AKIN GUMP STRAUSS HAUER & FELD LLP One Bryant Park New York, New York 10036 Tel: (212) 872-1000 Fax: (212) 872-1002 E-mail: mstamer@akingump.com jrubin@akingump.com and James Savin, Esq. AKIN GUMP STRAUSS HAUER & FELD LLP 1333 New Hampshire Avenue, N.W. Washington, DC 20036 Tel: (202) 887-4000 Fax: (202) 887-4288 E-mail: jsavin@akingump.com About CHC Group Headquartered in Irving, Texas, CHC is a global commercial helicopter services company primarily servicing the offshore oil and gas industry. CHC maintains bases on six continents with major operations in the North Sea, Brazil, Australia, and several locations across Africa, Eastern Europe, and South East Asia. CHC maintains a fleet of 230 medium and heavy helicopters, 67 of which are owned by it and the remainder are leased from various third-party lessors. CHC Group Ltd. and 42 of its wholly-owned subsidiaries each filed a voluntary petition for relief under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the Northern District of Texas on May 5, 2016. As of Jan. 31, 2016, CHG had $2.16 billion in total assets and $2.19 billion in total liabilities. The Debtors have hired Weil, Gotshal & Manges LLP as counsel, Debevoise & Plimpton LLP as special aircraft counsel, PJT Partners LP as investment banker, Seabury Corporate Advisors LLC as financial advisor, CDG Group, LLC as restructuring advisor, and Kurtzman Carson Consultants LLC as claims and noticing agent. CHC GROUP: Hires PJT Partners as Financial Advisor -------------------------------------------------- CHC Group Ltd., and its debtor-affiliates seek permission from the U.S. Bankruptcy Court for the Northern District of Texas to employ PJT Partners LP as Financial Advisor for the Debtors, nunc pro tunc to May 5, 2016. The Debtors require PJT to: a. assist in the evaluation of the Debtors' business and prospects; b. assist in the development of the Debtors' long term business plan and related financial projections; c. assist in the development of financial data and presentations to the Debtors' Board of Directors, various creditors and other third parties; d. analyze the Debtors' financial liquidity and evaluate alternatives to improve such liquidity; e. analyze various restructuring scenarios and the potential impact of these scenarios on the recoveries of those stakeholders impacted by the Restructuring; f. provide strategic advice with regard to restructuring of refinancing the Debtors' Obligations; g. evaluate the Debtors' debt capacity and alternative capital structures; h. participate in negotiations among the Debtors and their creditor, suppliers, lessors and other interested parties; i. value securities offered by the Debtors in connection with Restructuring; j. advise the Debtors and negotiate with lenders with respect to potential waivers or amendments of various credit facilities; k. assist in arranging financing for the Debtors, as requested; l. perform and provide a valuation analysis of the Debtors; m. provide expert witness testimony concerning any of the subjects encompassed by the other services; and n. provide such other advisory services as are customarily provided in connection with the analysis and negotiation of a Restructuring, as requested and mutually agreed. The Debtors have agreed to pay Intrepid the proposed compensation and expense reimbursements in the Engagement Letter. a. The Debtors shall pay PJY a monthly advisory fee in the amount of $150,000 per month, in cash, payable in advance on each monthly anniversary of the Effective Date. One-half of any monthly fee paid subsequent to the sixth Month Fee will be creditable against the Restructuring Fee. b. The Debtors shall pay a restructuring fee equal to $5,000,000. The Restructuring Fee will be earned on consummation of the Restructuring, and payable, in immediately available funds, upon consummation of the Restructuring. Notwithstanding, (a) a Restructuring specifically shall be deemed to exclude any assumption at face value of Obligations in connection with the sale or disposition of any subsidiaries, joint ventures, assets or lines of business of the Company and (b) the restructured Obligations shall excluded any Obligations in respect of which a Restructuring Fee has previously been paid. c. The Debtors agreed to reimburse PHT for all reasonable documented out-of-pocket expenses incurred during the engagement, including, but not limited to, travel and lodging , direct identifiable data processing, document production, publishing services and communication charges, courier services, working meals, reasonable documented fees and expenses of PJT's counsel and other necessary expenditures, payable upon rendition of invoices setting forth in reasonable detail the nature and amount of such expenses. In connection therewith, the Debtors paid PJT on the Effective Date and maintained thereafter a USD$25,000 expenses advance for which PJT shall account upon termination of the Engagement Letter. Further, in connection with the reimbursement, contribution and indemnification provisions set forth in the Engagement Letter and Attachment A to the Engagement Letter, the Debtors agree to reimburse each Indemnified Party for all reasonable and documented expenses (including fees, expenses and disbursements of counsel) as they are incurred in connection with investigating, preparing, pursuing, defending, or otherwise responding to, or assisting in the defense of any action, claim, suit investigation or proceeding related to, arising out of or in connection with the Engagement or the Indemnification Agreement, whether or not pending or threatened, whether or not any Indemnification Party is a party, whether or not resulting in any liability and whether or not such action, claim, suit, investigation or proceeding is initiated or brought by the Debtors. Michael J. Genereux, Partner in the Restructuring and Special Situations Group at PJT Partners LP, 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. PJT can be reached at: Michael J. Genereux PJT Partners LP 280 Park Avenue New York, NY 10017 Tel: +1 212.364.7800 E-mail: info@pjtpartners.com About CHC Group Headquartered in Irving, Texas, CHC is a global commercial helicopter services company primarily servicing the offshore oil and gas industry. CHC maintains bases on six continents with major operations in the North Sea, Brazil, Australia, and several locations across Africa, Eastern Europe, and South East Asia. CHC maintains a fleet of 230 medium and heavy helicopters, 67 of which are owned by it and the remainder are leased from various third-party lessors.   CHC Group Ltd. and 42 of its wholly-owned subsidiaries each filed a voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Tex. Case No. 16-31854) on May 5, 2016.   As of Jan. 31, 2016, CHG had $2.16 billion in total assets and $2.19 billion in total liabilities. The Debtors have hired Weil, Gotshal & Manges LLP as counsel, Debevoise & Plimpton LLP as special aircraft counsel, PJT Partners LP as investment banker, Seabury Corporate Advisors LLC as financial advisor, CDG Group, LLC as restructuring advisor, and Kurtzman Carson Consultants LLC as claims and noticing agent. The Office of the U.S. Trustee on May 13, 2016, appointed five creditors of CHC Group Ltd. to serve on the official committee of unsecured creditors. CHIEF POWER: S&P Lowers Rating on $351MM Sr. Sec. Facility to 'B+' ------------------------------------------------------------------ S&P Global Ratings said it lowered its rating on Chief Power Finance LLC's $351 million senior secured term loan B facility due 2020 and $44 million senior secured working capital revolving credit facility due 2019 to 'B+' from 'BB'. S&P removed the ratings from CreditWatch, where it placed them with negative implications on Feb. 16, 2016. The outlook is negative. The '1' recovery rating is unchanged, and indicates that lenders can expect to realize 90% to 100% of principal if a default occurs. The rating downgrade on Chief Power reflects ongoing weak market conditions in the PJM Interconnection market and an increasingly disadvantaged operating climate for coal-fired plants. The project's plants--Keystone and Conemaugh--significantly underperformed relative to S&P's expectations in 2015, both operationally and financially. Keystone had several unplanned forced outages, and both had lower-than-expected capacity factors due to mild weather and weak demand, as well as declining economics of coal-fired generation. Persistently low power prices, spurred by lower gas prices, generated low revenues, and so no cash was swept on the term loan in 2015 and the project fully drew its $44 million revolving credit facility. The higher-than-expected debt balance augments refinancing risk and lowers debt service coverage ratios (DSCR). S&P views this as a weakening of credit quality. "The negative outlook reflects our view that there is a one-in-three chance that continued challenging market conditions or unexpected operational underperformance could generate lower-than-expected cash flows and could lead to another downgrade," said S&P Global Ratings credit analyst Kimberly Yarborough. S&P expects demand to remain lackluster in the PJM and power prices to remain depressed in the near term due to persistently low natural gas prices. The project entered into a daily call option to sell 450 megawatt-hours (MWh) per day, with a strike price of $34.50 per MWh on-peak and $24.50 per MWh off-peak. This somewhat boosted the project's liquidity and improved cash flow stability, which had been depleted by the funding of ongoing operations with the revolving credit facility in 2015. Reduced capacity factors have led to excess coal inventories (more than 100 days of burn), which have hurt Chief Power's liquidity. However, the project has successfully renegotiated contracts with suppliers and used truck handling facilities at Keystone to blend cheaper, low quality coal effectively, thereby reducing fuel costs. S&P assumes slightly lower coal costs for 2016 as the project works to deplete its stockpile and purchases less from suppliers. CHINA GINSENG: Incurs $620,000 Net Loss in Second Quarter --------------------------------------------------------- China Ginseng Holdings, Inc., filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $620,317 on $253,619 of revenues for the three months ended March 31, 2016, compared to a net loss of $569,633 on $15,148 of revenues for the three months ended March 31, 2015. The Company also reported a net loss of $3.14 million on $315,365 of revenues for the six months ended March 31, 2016 compared to a net loss of $1.88 million on $167,362 of revenues for the same period in 2015. As of March 31, 2016, China Ginseng had $8.66 million in total assets, $21.40 million in total liabilities and a total stockholders' deficit of $12.73 million. A full-text copy of the Form 10-Q is available for free at: https://is.gd/Xnnsqa About China Ginseng Changchun City, China-based China Ginseng Holdings, Inc., conducts business through its four wholly-owned subsidiaries located in China. The Company has been granted 20-year land use rights to 3,705 acres of lands by the Chinese government for ginseng planting and it controls, through lease, approximately 750 acres of grape vineyards. However, recent harvests of grapes showed poor quality for wine production which indicates that the vineyards are no longer suitable for planting grapes for wine production. Therefore, the Company has decided not to renew its lease for the vineyards with the Chinese government upon expiration in 2013 and, going forward, it intends to purchase grapes from the open market in order to produce grape juice and wine. China Ginseng reported a net loss of $3.90 million on $272,600 of revenue for the year ended June 30, 2015, compared with a net loss of $4.76 million on $2.61 million of revenue for the year ended June 30, 2014. Cowan, Gunteski & Co., P.A., in Tinton Falls, NJ, issued a "going concern" qualification on the consolidated financial statements for the year ended June 30, 2015, citing that the Company had net losses of $3.90 million and $4.76 million for the years ended June 30, 2015 and 2014, respectively, an accumulated deficit of $18.1 million at June 30, 2015 and a working capital deficit of $16.5 million at June 30, 2015, and there are existing uncertain conditions the Company faces relative to its ability to obtain working capital and operate successfully. These conditions raise substantial doubt about its ability to continue as a going concern. CHS/COMMUNITY HEALTH: Moody's Lowers CFR to B2, Outlook Stable -------------------------------------------------------------- Moody's Investors Service downgraded the Corporate Family Rating of CHS/Community Health Systems, Inc. to B2 from B1. The Probability of Default Rating was also downgraded to B2-PD from B1-PD. Further, Community's senior secured bank debt and senior secured bonds have been downgraded to Ba3 (LGD 2) from Ba2 (LGD 2) and its unsecured notes have been downgraded to Caa1 (LGD 5) from B3 (LGD 5). Community's Speculative Grade Liquidity Rating was affirmed at SGL-2. The rating outlook has been revised to stable from negative. "The downgrade of Community's Corporate Family Rating to B2 reflects our expectation that financial leverage will remain high with debt to EBITDA above 5.5 times over the near term and that deleveraging to acceptable levels will take longer than anticipated," stated Dean Diaz, Moody's Senior Vice President. "Further reduction in leverage will depend on the company's ability to successfully turn around operations at underperforming hospitals and maximize recently announced asset sales," continued Diaz. The stable rating outlook reflects Moody's expectation that the company will begin to realize EBITDA growth and improved operating results from recent actions, but that the company's ability to meaningfully reduce leverage is modest. Moody's also expects that Community will refrain from additional debt financed acquisitions and share repurchases until leverage is reduced. The affirmation of the SGL-2 rating reflects Moody's expectation that Community will maintain good liquidity, characterized by modest and growing free cash flow and ample availability under its revolving credit facility. Following is a summary of Moody's rating actions. Ratings downgraded: Corporate Family Rating to B2 from B1 Probability of Default Rating to B2-PD from B1-PD Senior secured bank credit facilities to Ba3 (LGD 2) from Ba2 (LGD 2) Senior secured notes to Ba3 (LGD 2) from Ba2 (LGD 2) Senior unsecured notes to Caa1 (LGD 5) from B3 (LGD 5) Ratings affirmed: Speculative Grade Liquidity Rating at SGL-2 The rating outlook was revised to stable from negative. RATINGS RATIONALE Community's B2 Corporate Family Rating reflects Moody's expectation that the company will continue to operate with very high financial leverage over the next 12 to 18 months. While asset sales will allow the company to repay debt, the impact on leverage will be limited given the significant amount of debt outstanding and the foregone EBITDA. Supporting the rating is Moody's acknowledgment of Community's large scale and strong market presence, which remains significant even after the spin-off of 38 facilities and a hospital management business into Quorum Health Corporation and other planned divestitures. Moody's anticipates that the company will continue to see stable to improving margin performance in the near term from a number of operational improvement initiatives. Moody's could upgrade the ratings if operational initiatives result in volume growth that remains on par with the peer group and good liquidity is maintained. Further, Community will have to reduce and sustain debt to EBITDA at close to 5.0 times for a ratings upgrade. If the company is not able to sustain debt to EBITDA below 6.0 times, the ratings could be downgraded. The ratings could also be downgraded if Community completes a significant debt financed acquisition or share repurchase. Finally, if liquidity weakens, either because of operational shortfalls or adverse developments related to ongoing investigations, Moody's could downgrade the ratings. CHS/Community Health Services, Inc., headquartered in Franklin, Tennessee, is an operator of general acute care hospitals in non-urban and mid-sized markets throughout the US. Community recognized approximately $19.5 billion in revenue for the twelve months ended March 31, 2016. The principal methodology used in these ratings was Business and Consumer Service Industry published in December 2014. CINQUE TERRE: Subpoena Against Rothenberg Modified -------------------------------------------------- Judge James L. Garrity, Jr., of the U.S. Bankruptcy Court for the Southern District of New York vacated in part his April 29, 2016, order and quashed the May 2, 2016, subpoena commanding Richard Rothenberg to produce various documents and information relating to Cinque Terre Financial Group Limited. Mr. Rothenberg filed the motion to vacate on the ground that the mere fact of producing any of the document violates his Fifth Amendment right to self-incrimination. The Court concludes that because Rothenberg was the Debtor's Chief Financial Officer at the time the April Order and Subpoena were issued, and that the Subpoena was issued to Rothenberg in his capacity as a representative of Cinque Terre, Rothenberg was a "custodian," within the meaning of the term used in Braswell v. United States, 487 U.S. 99 (1988), Rothenberg is not entitled to assert the "act of production" privilege under the Fifth Amendment with respect to the production of Cinque Terre's corporate documents. Accordingly, pursuant to Rule 45 of the Federal Rules of Civil Procedure, made applicable by Rule 9016 of the Federal Rules of Bankruptcy Procedure, the Court modifies and limits the scope of the Subpoena to require the production of Cinque Terre’s corporate records in Rothenberg's possession, custody or control. In addition, the Court modifies paragraph 2 of the April Order to direct Rothenberg to immediately provide counsel to the Liquidator with the computer files and/or network stored files of Cinque Terre in his possession, custody or control, and paragraphs 3 and 4 of that order to direct Rothenberg to turnover only the corporate files, documents and emails of Cinque Terre in his possession, custody or control. A full-text copy of Judge Garrity's May 24, 2016 Memorandum Decision is available at http://bankrupt.com/misc/CINQUE680524.pdf APPEARANCES: Eugene Getty, Esq. KELLNER, HERLIHY, GETTY & FRIEDMAN, LLP 470 Park Avenue South 7th Floor North New York, NY 10016 Email: efg@khgflaw.com -- and -- Gregory Grossman, Esq. ASTIGARRAGA, DAVIS MULLINS & GROSSMAN, PA 1001 Brickell Bay Drive 9th Floor Miami, FL 33131 Email: ggrossman@astidavis.com -- and -- Andrew St. Laurent, Esq. HARRIS, ST. LAURENT & CHAUDHRY LLP 40 Wall Street, 53rd Floor New York, NY 10005 Email: andrew@sc-harris.com -- and -- Warren E. Gluck, Esq. Christopher R. Nolan, Esq. HOLLAND & KNIGHT LLP 31 West 52nd Street New York, NY 10019 Email: warren.gluck@hklaw.com chris.nolan@hklaw.com About Cinque Terre Cinque Terre is a limited liability company formed on or about March 12, 2008, under the laws of the BVI. At all material times, Cinque Terre maintained its registered office at Craigmuir Chambers, Road Town, Tortola, British Virgin Islands. Before the commencement of the BVI Liquidation, Cinque Terre purports to have been engaged in the business of international oil transactions. This business may have included purchasing and selling oil and bunker (marine) fuel for resale to end users or to brokers, investing in hedging transactions and other derivatives related to fuel/oil sales and providing trading and logistics support in connection with international oil/bunker fuel sales. In some cases, Cinque Terre appears to have entered into joint ventures with trading partners or investors to finance its activities, while in other cases Cinque Terre appears to have obtained financing for its investments. Stuart C Mackeller, Liquidator, filed a Chapter 15 Petition for Cinque Terre Financial Group Limited (Bankr. S.D.N.Y., Case No. 16-11086) on April 27, 2016. The Chapter 15 Petitioner's Counsel is Eugene F. Getty, Esq., at Kellner Herlihy Getty & Friedman, LLP, in New York. CLAIRE'S STORES: Files Conflicts Minerals Report with SEC --------------------------------------------------------- Claire's Stores, Inc. has reviewed its entire product line and determined that tin, tantalum, tungsten and gold, which are included under the definition of "Conflict Minerals", are necessary to the functionality or production of some of its products, primarily jewelry and technology accessories. In 2015, Claire's contracted for the manufacture of products containing the above Conflict Minerals but did not directly manufacture products containing the Conflict Minerals. Claire's implemented a Conflict Minerals Policy by taking the following steps in fiscal year 2013: 1. A Conflict Minerals requirement was added to its Vendor Policy, which delineates the contractual requirements of doing business with Claire's. Specifically, vendors are required to undertake reasonable due diligence within their supply chains to ensure that Conflict Minerals are being sourced from mines and smelters that do not contribute to the funding of armed groups within the Conflict Region. 2. A separate communication was sent to all of Claire's vendors stating its support of ending the human rights abuses associated with the mining of Conflict Minerals from the Conflict Region. Conflict Minerals Disclosure: "Claire's conducted a good faith country of origin inquiry of its vendors regarding the origin of Conflict Minerals used in the production of its products. The inquiry was conducted by means of a survey that was sent to our vendors. The survey was based on the EICC-GeSI template in order to determine whether those Conflict Minerals present in our products originated in the Democratic Republic of the Congo or an adjoining country or arose from recycled or scrap sources. Claire's reviewed the responses received from vendors, and contacted the vendors whose survey was incomplete to gather additional information. The survey results revealed that Claire's Conflict Minerals either arose from scrap or recycled sources or originated from countries other than the Democratic Republic of the Congo or adjoining countries (the "Conflict Region"). Based on all of the responses received, we have no reason to believe that the Conflict Minerals may have originated in the Democratic Republic of the Congo or an adjoining country and/or reasonably believe that the Conflict Minerals did come from recycled or scrap sources." About Claire's Stores Claire's Stores, Inc. -- http://www.clairestores.com/-- operates as a specialty retailer of fashion accessories and jewelry for preteens and teenagers, as well as for young adults in North America and internationally. It offers jewelry products that comprise costume jewelry, earrings, and ear piercing services; and accessories, including fashion accessories, hair ornaments, handbags, and novelty items. Based in Pembroke Pines, Florida, Claire's Stores operates under two brands: Claire's(R), which operates worldwide and Icing(R), which operates only in North America. As of Jan. 31, 2009, Claire's Stores, Inc., operated 2,969 stores in North America and Europe. Claire's Stores also operates through its subsidiary, Claire's Nippon, Co., Ltd., 213 stores in Japan as a 50:50 joint venture with AEON, Co., Ltd. The Company also franchises 198 stores in the Middle East, Turkey, Russia, South Africa, Poland and Guatemala. * * * The TCR reported on April 11, 2016, that Moody's Investors Service downgraded Claire's Stores, Inc. Corporate Family Rating (CFR) and Probability of Default Rating to Caa3 and Caa3-PD, respectively. "[The] downgrades reflect our view that there is an acute likelihood of a debt restructuring ahead of the June 2017 maturity of Claire's subordinated notes due to continuing erosion of liquidity and weak operating performance," stated Moody's Vice President Charlie O'Shea. As reported by the TCR on May 20, 2016, S&P Global Ratings raised its corporate credit rating on Florida-based Claire's Stores Inc. to 'CCC-' from 'SD'. The outlook is negative. COATES INTERNATIONAL: CEO Makes $100,000 Additional Investment -------------------------------------------------------------- George J. Coates, president, chief executive officer and majority shareholder of Coates International Ltd., converted $100,000 of 17% promissory notes including $52,000 of accrued interest, due from the Company to Mr. Coates, into unregistered, restricted shares of common stock of the Company at the closing price per share of $0.0011 on May 19, 2016. These promissory notes arose from cash lent to the Company for working capital purposes from Mr. Coates' personal funds. Accordingly, the Company issued 90,909,091 restricted shares of its common stock to Mr. Coates. This transaction improves the Company's balance sheet by reducing current liabilities by $100,000 and reducing the amount of the stockholders' deficiency by the same amount. It should be noted that Mr. Coates has demonstrated his substantial commitment to and faith in the Company as evidenced by his deferral of all of his salary for more than the last three years since January 2013 amounting to approximately $827,000. In addition, Mr. Coates has been providing working capital to fund the Company's operations from time to time since September 2010 in the form of 17% promissory notes. As of May 19, 2016, the balance due to Mr. Coates, consisting of unpaid accrued interest was approximately $305,000. Furthermore, Bernadette Coates, the spouse of Mr. Coates is owed a total of approximately $289,000 in unpaid deferred salary since the January 2013 and promissory notes from working capital provided to the Company from time to time since April 2012, including accrued interest thereon. Company management believes that Mr. Coates' investment of $100,000 represents a vote of confidence in the Company's ability to carry out its business plan to manufacture and distribute the world-wide patented Coates Spherical Rotary Valve system technology products. Mr. Coates stated: "I agreed to convert these promissory notes because I wanted to express my continued confidence in the Company and also felt that the recent trading price range of our stock made this an attractive opportunity." The Company gives no assurance that it will be successful in any of its endeavors. About Coates Based in Wall Township, N.J., Coates International, Ltd. (OTC BB: COTE) -- http://www.coatesengine.com/-- was incorporated on August 31, 1988, for the purpose of researching, patenting and manufacturing technology associated with a spherical rotary valve system for internal combustion engines. This technology was developed over a period of 15 years by Mr. George J. Coates, who is the President and Chairman of the Board of the Company. The Coates Spherical Rotary Valve System (CSRV) represents a revolutionary departure from the conventional poppet valve. It changes the means of delivering the air and fuel mixture to the firing chamber of an internal combustion engine and of expelling the exhaust produced when the mixture ignites. Coates International reported a net loss of $10.2 million on $94,200 of total revenues for the year ended Dec. 31, 2015, compared to a net loss of $12.8 million on $19,200 of total revenues for the year ended Dec. 31, 2014. As of March 31, 2016, Coates had $2.42 million in total assets, $7.56 million in total liabilities, and a total stockholders' deficiency of $5.14 million. Cowan, Gunteski & Co., P.A., in Tinton Falls, New Jersey, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2015, citing that the Company continues to have negative cash flows from operations, recurring losses from operations, and a stockholders' deficiency. These conditions raise substantial doubt about its ability to continue as a going concern. COMPASSIONATE CARE OF NJ: Hires Timothy Bluish as Accountant ------------------------------------------------------------ Compassionate Care of NJ asks for permission from the U.S. Bankruptcy Court for the District of New Jersey to employ Timothy Bluish, CPA, as accountant. The Debtor-in-Possession needs assistance in preparing tax returns and financial documents. Mr. Bluish will prepare tax returns, monthly operating reports, and financial statements, among others. He will be paid $200 per hour for his services. Mr. Bluish assures the Court that he doesn't hold nor represent an adverse interest to the estate and is disinterested under 11 U.S.C. Section 101(14). The accountant can be reached at: Timothy J. Bluish, Accountant 14 Hluchy Road, Robbinsville, NJ 08691 Tel: (609) 259-1174 Compassionate Care of NJ filed for Chapter 11 bankruptcy protection (Bankr. D. N.J. Case No. 16-19212) on May 11, 2016. James J. Cerbone, Esq., who has an office in Wall, New Jersey, serves ash the Debtor's bankruptcy counsel. COMPASSIONATE CARE OF NJ: Taps James J. Cerbone as Bankr. Counsel ----------------------------------------------------------------- Compassionate Care of NJ seeks permission from the U.S. Bankruptcy Court for the District of New Jersey to employ James J. Cerbone, Esq., as attorney, to evaluate the Debtor's financial condition, address creditors claims and prepare and file a plan of reorganization. Mr. Cerbone will also represent the Debtor in its Chapter 11 case, examine the Debtor's financial affairs and assist the Debtor in preparing a Chapter 11 plan of reorganization. Mr. Cerbone will be paid $350 per hour for his services, while his associates will be paid $250 per hour. Mr. Cerbone has received a $6500 retainer. Mr. Cerbone assures the Court that he doesn't hold and represent an adverse interest to the debtor or the estate with respect to the matter for which I will be retained under 11 U.S.C. Sec. 327(e) and is disinterested under 11 U.S.C. Sec. 101(14). Mr. Cerbone can be reached at: JAMES J. CERBONE, ESQ. 2430 Route 34 Building B, Suite 22 Wall, NJ 08736 Tel: (732) 681-6800 Compassionate Care of NJ filed for Chapter 11 bankruptcy protection (Bankr. D. N.J. Case No. 16-19212) on May 11, 2016. D&E GENERAL: Case Summary & 14 Unsecured Creditors -------------------------------------------------- Debtor: D&E General Partnership 5201 Kingston Pike Suite 6-366 Knoxville, TN 37919-5026 Case No.: 16-31625 Nature of Business: Single Asset Real Estate Chapter 11 Petition Date: May 24, 2016 Court: United States Bankruptcy Court Eastern District of Tennessee (Knoxville) Judge: Hon. Suzanne H. Bauknight Debtor's Counsel: Dean B. Farmer, Esq. HODGES, DOUGHTY & CARSON PLLC P. O. Box 869 Knoxville, TN 37901 Tel: 865-292-2307 Fax: 865-292-2252 E-mail: dfarmer@hdclaw.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by David Murray Dunlap, authorized representative. A list of the Debtor's 14 largest unsecured creditors is available for free at http://bankrupt.com/misc/tneb16-31625.pdf DEETOWN ENTERTAINMENT: Hires Del Virginia as Counsel ---------------------------------------------------- Deetown Entertainment, Inc., and Ali Theodore seek permission from the U.S. Bankruptcy Court for the Southern District of New York to employ the Law Offices of Gabriel Del Virginia as attorneys for the Debtors and Debtors-in-possession, nunc pro tunc to November 30, 2015, for Ali Theodore and March 10, 2016, for Deetown Entertainment. Ali, an individual who works as a singing talent and producer, and Deetown, his wholly owned alter ego corporation, believe the proceeding under Chapter 11 will benefit them and creditors. The Debtors require Del Virginia Office to: a. provide the Debtors legal advice regarding each of their authorities and duties as a debtors-in-possession in the continued operation of their businesses and the management of their property and affairs. b. prepare all necessary pleadings, orders, and related legal documents and assist the Debtors and their financial professionals in preparing monthly reports to the Office of the United States Trustee; and c. perform any additional legal services to the Debtors which may be necessary and appropriate in the conduct of this case. Del Virginia Office will be paid at these hourly rates: Gabriel Del Virginia, Partner $575 Associate $225 Paralegal $125 The Del Virginia Office was paid the amount of $6,717 for the Deetown chapter 11 case, the payment was made post-petition. Gabriel Del Virginia, sole member of The Law Offices of Del Virginia, assured the Court that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtors and their estates. The Del Virginia Office may be reached at: Gabriel Del Virginia Law Offices of Gabriel Del Virginia 30 Wall Street- 12th Floor New York, NY 10005 Telephone: 212-371-5478 Facsimile: 212-371—460 E-mail: gabriel.delvirginia@verizon.com Ali Theodore initially filed a Chapter 13 petition (Bankr. S.D.N.Y. Case No. 15-11781) on July 9, 2015. The case was converted to Chapter 11 on November 30, 2015. Deetown Entertainment, Inc. filed a Chapter 11 petition (Bankr. S.D.N.Y. Case No. 16-10568) on March 10, 2016. Gabriel Del Virginia, Esq., at the Law Offices of Gabriel Del Virginia, serve as counsel to the Debtors. DEI TRANSPORTATION: Court Strikes Plea to Extend Exclusive Periods ------------------------------------------------------------------ The Hon. Eduardo V. Rodriquez of the U.S. Bankruptcy Court for the Southern District of Texas entered on May 24, 2016, an order striking DEI Transportation, LLC's first motion to extend its exclusive periods to file a disclosure statement and plan reorganization. According to the judge, the Debtor's motion contains the negative notice language required by BLR 9013-1(b), but uses an incorrect response time, making it non-compliant with the requirements of BLR 9013-1 and is procedurally improper. As reported by the Troubled Company Reporter on May 20, 2016, the Debtor asked the Court to extend the exclusive period to file a plan of reorganization to Aug. 17, 2016, and the exclusive period for the Debtor to solicit acceptance of the plan to Oct. 16, 2016, saying that it has not had the opportunity to formulate a plan of reorganization as a result of negotiating with BMO Harris Bank and other creditors of Debtor. The primary reason Debtor requested to extend exclusive periods is that its counsel will be in a jury trial until the third week of June 2016 and accordingly will not be able to file a Disclosure Statement or Plan before the deadline. DEI Transportation, LLC, filed for Chapter 11 bankruptcy protection (Bankr. S.D. Tex. Case No. 16-70078) on Feb. 19, 2016. Antonio Villeda, Esq., at Villeda Law Group serves as the Debtor's bankruptcy counsel. DENBURY RESOURCES: S&P Raises CCR to 'CCC+', Outlook Negative ------------------------------------------------------------- S&P Global Ratings raised its corporate credit rating on Plano, Texas-based Denbury Resources Inc. to 'CCC+' from 'SD' (selective default). The outlook is negative. S&P also assigned its 'B' issue-level rating to Denbury's new senior secured second-lien notes due 2021. The recovery rating on these notes is '1', indicating very high (90% to 100%) recovery in the event of a payment default. At the same time, S&P raised its rating on the company's senior secured revolving credit facility to 'B' from 'CCC'. The recovery rating on this debt remains '1', indicating very high (90% to 100%) recovery in the event of a payment default. S&P also raised its ratings on Denbury's subordinated debt to 'CCC+' from 'D'. S&P revised the recovery rating on these notes to '4' from '6', indicating its expectation of average (30% to 50%; higher end of range) recovery in the event of a payment default. The rating actions follow Denbury's issuance of about $615 million of new senior secured second-lien notes due 2021 in exchange for a portion of its outstanding subordinated notes and common shares. S&P viewed the transaction as a distressed exchange because subordinated noteholders received less than par. "We raised the corporate credit rating on Denbury to reflect our forward-looking opinion of the company's creditworthiness," said S&P Global Ratings credit analyst Christine Besset. While the recent note repurchases reduce debt by approximately $540 million, S&P views financial leverage as unsustainably high in 2016 and 2017. The company has adequate liquidity, however, including approximately $8 million of cash and $681 million available under its revolving credit facility. The negative outlook reflects S&P's expectation that Denbury's leverage will be very high in 2016 and 2017 under S&P's current production, price and cost assumptions, despite the recent debt exchanges. S&P could lower the ratings if the company made further distressed debt exchanges or liquidity deteriorated such that S&P foresaw a default within 12 months. S&P could raise the ratings or revise the outlook to stable if debt to EBITDA moved closer to 6x. Such a scenario would most likely occur if the company was able to reduce debt further or oil prices recovered significantly. DENNIS MEYER DANZIK: Court Allows Sigma to Pursue NY Suit --------------------------------------------------------- Judge Cathleen D. Parker of the United States Bankruptcy Court for the District of Wyoming granted the motion of Sigma Opportunity Fund II, LLC, to modify the automatic stay in order to allow a pending action to continue in the New York state court, after determining that Sigma has established that its claim could be liquidated more expeditiously or economically in the New York Action. Relief from the stay will advance, rather than frustrate the administration of this case, the court held. The mechanism for a speedy adjudication of the merits of Movant's claim, overall judicial economy and the interests of the parties, the court further held. A full-text copy of the Memorandum Opinion dated April 7, 2016 is available at https://is.gd/RxDTQk from Leagle.com. The bankruptcy case is In re DENNIS MEYER DANZIK, Chapter 11, Debtor(s), Case No. 16-20002 (Bankr. D. Wy.). Dennis Meyer Danzik, Debtor, is represented by Ken McCartney, Esq. -- The Law Offices of Ken McCartney, P.C.. US Trustee, U.S. Trustee, is represented by Daniel J. Morse, Assistant U.S. Trustee. DINSONS INC: U.S. Trustee Unable to Appoint Committee ----------------------------------------------------- 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 Dinsons Inc. Dinsons Inc. sought protection under Chapter 11 of the Bankruptcy Code (Bankr. M.D. Fla. Case No. 16-01329) on April 8, 2016. The Debtor is represented by Jason A Burgess, Esq., at The Law Offices of Jason A. Burgess, LLC. DOLPHIN DIGITAL: Incurs $3.44 Million Net Loss in First Quarter --------------------------------------------------------------- Dolphin Digital Media Inc. filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $3.44 million on $17,278 of total revenue for the three months ended March 31, 2016, compared to a net loss of $2.28 million on $24,263 of total revenue for the same period in 2015. As of March 31, 2016, Dolphin Digital had $20.71 million in total assets, $46.72 million in total liabilities and a total stockholders' deficit of $26 million. As of March 31, 2016 and 2015, the Company had cash of approximately $2.7 million and approximately $0.8 million, respectively, and a working capital deficit of approximately $40.1 million and approximately $40.7 million, respectively. A full-text copy of the Form 10-Q is available for free at: https://is.gd/vmvPYH 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 $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. 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. DRAFTDAY FANTASY: Signs $500,000 Loan Agreement with Sillerman -------------------------------------------------------------- Sillerman Investment Company VI, an affiliate of Robert F.X. Sillerman, the executive chairman and chief executive officer of Viggle Inc., entered into a secured revolving loan agreement with the Company and its subsidiaries, wetpaint.com, Inc. and Choose Digital Inc., on May 16, 2016, pursuant to which the Company can borrow up to $500,000. The Secured Revolving Loan bears interest at the rate of 12% per annum. The Secured Revolving Loan matures on Dec. 31, 2016, barring any events of default or a change of control of the Company. On May 16, 2016, the Company borrowed $161,000 under the Secured Revolving Loan. In connection with the Secured Revolving Loan, 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 Loan to fund working capital requirements and for general corporate purposes. 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. As reported on the Company's Current Report on Form 8-K filed May 3, 2016, the Company entered into a Secured Line of Credit with Sillerman Investment Company VI, LLC on April 29, 2016. On May 16, 2016, the Company borrowed an additional $25,000 under the Secured Line of Credit. On April 28, 2016, the Company borrowed an additional $195,000 under the Secured Line of Credit. A total of $500,000 has been advanced under the Secured Line of Credit. 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. "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. As of March 31, 2016, DraftDay had $32.4 million in total assets, $48.6 million in total liabilities, $12.5 million in series C convertible redeemable preferred stock and a $28.6 million total stockholders' deficit. EASTERN CONTINENTAL: Court Closes Chapter 15 Proceeding ------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware entered an order directing the closing of the Chapter 15 case of Eastern Continental Mining and Development Ltd., with Case No. 16-10121-BLS. As of April 25, 2016, no answer, objection or other responsive pleading were filed to oppose the Motion for Entry of Order (i) Closing Chapter 15 Case and (ii) Granting Related Relief, filed on March 22, 2016. Objections to the motion were to filed and served no later than April 22, 2016 at 4:00 p.m. Koumettou, in his capacity as the liquidator and authorized foreign representative of Eastern Continental Mining and Development Ltd, filed a Chapter 15 bankruptcy petition (Bankr. D. Del. Case No. 16-10121) on Jan. 18, 2016, in the United States, seeking recognition of a proceeding commenced under the United Kingdom's Insolvency Rules 1986. Based in London, the Debtor was formed to explore and develop direct investment opportunities in the Asian raw materials and mineral resources sector. The Debtor planned to construct networks of mineral mining and collection, processing and shipping centers. Its principal focus was developing opportunities in Indonesia, with a view to exporting to other Asian economies including China, India, Japan, and Korea. U.S. Bankruptcy Judge Brendan L. Shannon granted recognition as a "foreign main" proceeding. No objections were filed to the Chapter 15 petition and the motion for recognition. EASTMINSTER SCHOOL: Case Summary & 13 Unsecured Creditors --------------------------------------------------------- Debtor: Eastminster School, Inc. 2450 Lennox Road Conyers, GA 30094 Case No.: 16-58972 Chapter 11 Petition Date: May 24, 2016 Court: United States Bankruptcy Court Northern District of Georgia (Atlanta) Debtor's Counsel: Michael D. Robl, Esq. THE SPEARS & ROBL LAW FIRM, LLC Suite 250, 3754 LaVista Road Tucker, GA 30084 Tel: 404-373-5153 Fax: 404-537-1761 E-mail: mdrobl@tsrlaw.com michael@roblgroup.com Total Assets: $1.62 million Total Liabilities: $3.25 million The petition was signed by Andrew M. Brown, director. A list of the Debtor's 13 largest unsecured creditors is available for free at http://bankrupt.com/misc/ganb16-58972.pdf ECOSPHERE TECHNOLOGIES: Incurs $1.96-Mil. Net Loss in 1st Quarter ----------------------------------------------------------------- Ecosphere Technologies, Inc., filed with the Securities and Exchange Commission its quarterly report on Form 10-Q a net loss of $1.96 million on $6,980 of total revenues for the three months ended March 31, 2016, compared to a net loss of $2.80 million on $13,714 of total revenues for the three months ended March 31, 2015. As of March 31, 2016, the Company had $2.08 million in total assets, $11.85 million in total liabilities, $3.90 million in total redeemable convertible cumulative preferred stock, and a total deficit of $13.68 million. A full-text copy of the Form 10-Q is available for free at: https://is.gd/cvPPir About Ecosphere Technologies Stuart, Florida-based Ecosphere Technologies (OTC BB: ESPH) -- http://www.ecospheretech.com/-- is a water engineering, technology licensing and environmental services company that designs, develops and manufactures wastewater treatment solutions for industrial markets. Ecosphere, through its majority-owned subsidiary Ecosphere Energy Services, LLC, provides energy exploration companies with an onsite, chemical free method to kill bacteria and reduce scaling during fracturing and flowback operations. Ecosphere reported a net loss of $23.06 million on $721,179 of total revenues for the year ended Dec. 31, 2015, compared to a net loss of $11.49 million on $1.11 million of total revenues for the year ended Dec. 31, 2014. 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 reported a net loss of $23,067,761 and $11,496,463 in 2015 and 2014, respectively, and cash used in operating activities of $1,761,946 and $4,550,454 in 2015 and 2014, respectively. At December 31, 2015, the Company had a working capital deficiency, stockholders' deficit and accumulated deficit of $9,322,066, $12,218,672 and $132,397,790 respectively. These matters raise substantial doubt about the Company's ability to continue as a going concern. EFRON DORADO: PRAPI Asks Court to Deny Cash Use Bid --------------------------------------------------- PR Asset Portfolio 2013-1 International Sub I, LLC, asks the Bankruptcy Court to deny Efron Dorado Se's Cash Collateral Motion, prohibit the Debtor's use of any such Cash Collateral, and direct the Debtor to provide PRAPI adequate protection. PRAPI asks for adequate protection in the form of: a. a first priority replacement lien on all of the Debtor's postpetition assets; b. an accounting of all Cash Collateral received by or for the benefit of the Debtor since the Petition Date; c. full access to the books and records of the Debtor, including all electronic records on any computers used by or for the benefit of Debtor, to make electronic copies, photocopies or abstracts of the business records of the Debtor; d. turn over of any Cash Collateral or property of PRAPI that is in the possession, custody or control of the Debtor or any of the insiders of the Debtor; e. a constructive trust on any Cash Collateral, or proceeds of any Collateral of PRAPI, if any, that has been diverted to any person or bank account as a result of any diversion of the Debtor’s accumulated rents. Since this dispute between the Debtors and PRAPI is now affecting the on-going tenancy of Wal-Mart Puerto Rico, Inc., Wal-Mart seeks Court authority, in the event the Debtor's request to use cash collateral is denied, to allow Wal-Mart to use the rent and common area maintenance payments due to the Debtor order for Wal-Mart to conduct necessary repairs and maintenance to a shopping center, Paseo del Plata Shopping Center. Attorneys for PR Asset Portfolio 2013-1 International Sub I, LLC: Hermann D. Bauer, Esq. Nayuan Zouairabani, Esq. O'NEILL & BORGES LLC American International Plaza 250 Muñoz Rivera Avenue, Suite 800 San Juan, Puerto Rico 00918-1813 Tel: (787) 764-8181 Fax: (787) 753-8944 Email: hermann.bauer@oneillborges.com nayuan.zouairabani@oneillborges.com Wal-Mart Puerto Rico, Inc. is represented by: Juan C. Salichs, Esq. JUAN C. SALICHS PO BOX 195553 San Juan, Puerto Rico 00919-5553 Tel. (787) 449-6000 Fax (787) 474-3892 E-mail: jsalichs@splawpr.com About Efron Dorado Se Efron Dorado Se, based in San Juan, Puerto Rico, filed for Chapter 11 bankruptcy protection (Bankr. D.P.R. Case No. 16-00283) on Jan. 20, 2016. The petition was signed by David Efron, partner. Charles Alfred Cuprill, Esq., at Charles A Cuprill, PSC Law Office, serves as its bankruptcy counsel. In its petition, the Debtor listed total assets of $33.2 million and total debt of $15.2 million. According to the schedules, the Debtor owns the shopping mall known as Paseo Del Plata Shopping Center located in Dorado, Puerto Rico; a parcel of land consisting of 80 Cuerdas, identified as Quintas De Dorado; and a parcel of land consisting of 30 Cuerdas known as Hernandez Farm. EMMAUS LIFE: Incurs $12.7 Million Net Loss in 2015 -------------------------------------------------- Emmaus Life Sciences, Inc., filed with the Securities and Exchange Commission its annual report on Form 10-K disclosing a net loss of $12.7 million on $590,114 of net revenues for the year ended Dec. 31, 2015, compared to a net loss of $21.8 million on $500,679 of net revenues for the year ended Dec. 31, 2014. As of Dec. 31, 2015, the Company had $1.47 million in total assets, $30.0 million in total liabilities and a total stockholders' deficit of $28.6 million. SingerLewak 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, its total liabilities exceed its total assets and it has an accumulated stockholders' deficit. 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: https://is.gd/KUbfzc About Emmaus Life Emmaus Life Sciences, Inc., is engaged in the discovery, development, and commercialization of treatments and therapies primarily for rare and orphan diseases. This biopharmaceutical company's headquarters is in Torrance, California. FAIRWAY GROUP: Nasdaq to Delist Common Stock Effective June 1 ------------------------------------------------------------- The Nasdaq Stock Market, Inc., has determined to remove from listing the common stock of Fairway Group Holdings Corp. effective at the opening of the trading session on June 1, 2016. Based on review of information provided by the Company, Nasdaq Staff determined that the Company no longer qualified for listing on the Exchange pursuant to Listing Rules 5101, 5110(b), and IM-5101-1. The Company was notified of the Staffs determination on May 5, 2016. The Company did not appeal the Staff determination to the Hearings Panel, and the Staff determination to delist the Company became final on May 16, 2016. About Fairway Headquartered in New York, Fairway Group Holdings Corp. is a food retailer offering customers a differentiated one-stop shopping experience "Like No Other Market". Fairway claims to have established itself as a leading food retailing destination in the Greater New York City metropolitan area, with stores that emphasize an extensive selection of fresh, natural and organic products, prepared foods and hard-to-find specialty and gourmet offerings, along with a full assortment of conventional groceries. Fairway operates 15 locations in the Greater New York City metropolitan area, including four Fairway Wines & Spirits locations. Seven Fairway stores are located in New York City and the remainder of Fairway's stores are located in New York (outside of New York City), New Jersey and Connecticut. Fairway Group, et al., filed Chapter 11 bankruptcy petitions (Bankr. S.D.N.Y. Proposed Lead Case No. 16-11241) on May 2, 2016. The petitions were signed by Edward C. Arditte as co-president and chief financial officer. The Debtors have engaged Weil, Gotshal & Manges LLP as counsel, Norton Rose Fulbright US LLP as special corporate counsel, Curtis, Mallet-Prevost, Colt & Mosle LLP as conflicts counsel, Alvarez & Marsal as financial advisor and Prime Clerk LLC as claims and noticing agent. FINJAN HOLDINGS: Provides Update on Patents Challenges ------------------------------------------------------ Finjan Holdings, Inc., announced that the Patent Trial and Appeal Board for the United States Patent and Trademark Office has ruled on all 13 petitions for Inter Partes Review filed by Palo Alto Networks, Inc. Of the 13 petitions for IPR, the PTAB has denied seven petitions in Finjan's favor, partially denied (and partially granted) three petitions, and granted three petitions for review. In its most recent decisions, the PTAB denied five of Palo Alto Networks' petitions (IPR2016-00165, IPR2016-00164, IPR2016-00145, IPR2016-00149, and IPR2016-00150) for IPR challenging the validity of Finjan's U.S. Patent Nos. 6,804,780 ("the '780 Patent"), 7,613,918 ("the '918 Patent"), and 7,613,926 ("the '926 Patent"), respectively. The latter two petitions were directed to U.S. Patent No. 6,965,968 ("the '968 Patent"). The PTAB granted the petition (IPR2016-00159) to institute IPR of U.S. Patent No. 8,677,494 ("the '494 Patent"). "With the IPR results from Palo Alto Networks completed, we are the nearing the end of an extensive and costly campaign against our asserted patents," commented Julie Mar-Spinola, Finjan Holdings' Chief IP Officer and VP, Legal. "Of the 40 IPR petitions that have been filed, 17 have been denied in Finjan's favor, 7 IPRs that cover only 4 of Finjan’s patents have been granted further review and 16 petitions, which are largely motions to join previous petitions, are pending." "For those petitions granted further review by the PTAB, Finjan is prepared to fight vigorously on the merits. Significantly, given the number of repeated and overlapping challenges to the validity of our patents, we believe that the challenges will be coming to an end as the universe of prior art asserted against our patents is rapidly being exhausted and new prior art cannot be created," concluded Mar-Spinola. Final summary of Palo Alto Network challenges against Finjan Patents: '926 Patent: IPR2016-00145: denied '968 Patent: IPR2016-00149: denied '968 Patent: IPR2016-00150: denied '154 Patent: IPR2016-00151: part denied/part granted '494 Patent: IPR2016-00159: granted '918 Patent: IPR2016-00164: denied '780 Patent: IPR2016-00165: denied '633 Patent: IPR2015-01974: part denied/part granted '154 Patent: IPR2015-01979: part denied/part granted '822 Patent: IPR2015-01999: denied '731 Patent: IPR2015-02000: denied '408 Patent: IPR2015-02001/IPR2016-00157 (consolidated): granted on certain claims 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 $12.6 million in 2015, a net loss of $10.5 million in 2014 and a net loss of $6.07 million in 2013. As of March 31, 2016, Finjan Holdings had $8.10 million in total assets, $2.78 million in total liabilities and $5.32 million in total stockholders' equity. FLOUR CITY BAGELS: Gets Final Approval to Use Cash Collateral ------------------------------------------------------------- Flour City Bagels LLC received final approval to use the cash collateral of its pre-bankruptcy lenders to support its operations. The order, issued by Judge Paul Warren of the U.S. Bankruptcy Court for the Western District of New York, allowed the company to use the cash collateral of United Capital Business Lending, Inc. and Canal Mezzanine Holdings II LP. Flour City Bagels owes the lenders almost $9.8 million, according to court filings. In return for allowing Flour City Bagels to use their cash collateral, both lenders will get a "superpriority" administrative expense claims and "replacement liens" on certain assets of the company, which it used as collateral for the loans. About Flour City Bagels Headquartered in Fairport, New York, Flour City Bagels, LLC, operates 32 bakeries that serve "New York Style" bagels, coffee, drinks, soups, salads, sandwiches, fresh fruit, and a variety of other related items. In 1993, the Debtor opened its commissary in Rochester, at which it produces bagels for sale at all of its 32 bakeries. The Debtor employs 425 people. Flour City Bagels, LLC, sought protection under Chapter 11 of the Bankruptcy Code (Bankr. W.D.N.Y. Case No. 16-20213) on March 2, 2016, estimating both assets and debts in the range of $10 million to $50 million. Kevin Coyne, the manager, signed the petition. Judge Paul R. Warren is assigned the case. Bond, Schoeneck & King, PLLC and Buckley King serve as the Debtor's counsel. FOREST PARK REALTY: Needs Until Sept.18 to Decide on Hospital Lease ------------------------------------------------------------------- Forest Park Medical Center, LLC, asks the U.S. Bankruptcy Court to extend the deadline for assuming or rejecting a certain lease of non-residential real property until September 18, 2016, with respect to the Lease with the Lessors. The Debtor is a lessee of a Hospital at 11990 N. Central Expressway, in Dallas, Texas, owned by one or more of the chapter 11 Debtors in the related bankruptcy cases of Forest Park Realty Partners III, LP, and BT Forest Park Realty Partners, LP, under Case No. 15-34814-SGJ. According to the Debtor, the Lessors have recently filed a motion in the related cases to sell the real estate on which the Hospital is located, and ultimately, the Debtor also expects to file a motion to sell substantially all of its assets and to assume and assign certain executory contracts and non-residential real property leases to the successful purchaser in the related cases, or to a new tenant under the Lease. Forest Park Medical Center, LLC, is represented by: Howard Marc Spector, Esq. SPECTOR & JOHNSON, PLLC 12770 Coit Road, Suite 1100 Dallas, Texas 75251 Telephone: (214) 365-5377 Facsimile: (214) 237-3380 Email: hspector@spectorjohnson.com About Forest Park Realty Forest Park Realty Partners III, LP, and BT Forest Park Realty Partners, LP, own properties that constitute Forest Park Dallas, which includes several hospital buildings, a parking garage, and a vacant lot. Forest Park Realty Partners III, LP, and BT Forest Park Realty Partners, LP, sought Chapter 11 protection (Bankr. N.D. Tex. Lead Case No. 15-34814) on Nov. 30, 2015. The petitions were signed by Todd Furniss as manager of Neal Richards Group Forest Park Development LLC, its general partner. Judge Stacey G. Jernigan has been assigned to the cases. Forest Park estimated assets of $50 million to $100 million and liabilities of $100 million to $500 million. Franklin Hayward LLP serves as counsel to the Debtors. FRED FULLER OIL: Court OKs Withdrawal of Gannon as Counsel ---------------------------------------------------------- Judge J. Michael Deasy of the U.S. Bankruptcy Court for the District of New Hampshire granted William S. Gannon's motion to withdraw as counsel for Debtor, Fred Fuller Oil & Propane Co., Inc. Gannon can be reached at: William S. Gannon, Esq. WILLIAM S. GANNON, PLLC 889 Elm Street, 4th Floor Manchester, NH 03101 Telephone: (603) 621-0833 Email: bgannon@gannonlawfirm.com About Fred Fuller Oil Hudson, New Hampshire-based Fred Fuller Oil & Propane Co., Inc., was the largest heating oil company in the state, serving about 30,000 New Hampshire customers. It sought Chapter 11 protection (Bankr. D. N.H. Case No. 14-12188)in Manchester, New Hampshire, on Nov. 10, 2014. Fredrick J. Fuller, the president, signed the bankruptcy petition. The Debtor estimated $10 million to $50 million in assets and debt. The Nov. 10, 2014 court filing shows that the Debtor has about $13.5 million in debt. William S. Gannon, Esq., at William S. Gannon PLLC, in Manchester, serves as counsel to the Debtor. On Feb. 12, 2015, the Office of the U.S. Trustee appointed a three-member Official Committee of Unsecured Creditors. The Committee selected Brinkman Portillo Ronk, APC, as its counsel with Deming Law Office acting "of counsel." * * * The Court on Nov. 26, 2014, entered an order authorizing the Debtor to sell substantially all assets to Rymes Heating Oil, Inc. The Order called for Rymes to assume the liability and responsibility for performing the Debtor's liabilities under the "Pre-Buy/Budget Contracts," and to deliver fuel to their homes without further cost. Under the purchase and sales agreement as approved by the Court, Rymes assumed the liabilities for employee vacation and sick pay; delivered a promissory note for $3.645 million to Sprague; and delivered a promissory note to the estate in the amount of$275,000. Rymes also agreed to pay Raymond Green up to $2.5 million. Also sold through the sale process were assets belonging to Mr. Frederick Fuller, or non-debtor entities he controlled. Disputes over what was intended to be Rymes' or the Debtor's responsibility under the sale continue to remain, and the estate is poised to bring litigation against Rymes in the very near future. GENON ENERGY: S&P Lowers CCR to 'CCC', Outlook Negative ------------------------------------------------------- S&P Global Ratings said that it lowered its corporate credit rating on GenOn Energy Inc. and its affiliates GenOn Energy Holdings Inc., GenOn Americas LLC, and GenOn REMA LLC to 'CCC' from 'CCC+'. The outlook is negative. At the same time, S&P lowered its issue-level ratings on GenOn Energy Inc.'s $1.95 billion senior unsecured notes ($1.83 billion outstanding) to 'CCC+' from 'B-'. The recovery rating on this debt remains '2', indicating S&P's expectation for substantial (70% to 90%, at the low end of the range) recovery in a payment default. S&P lowered the issue rating on GenOn REMA LLC's $641 million pass-through certificates (about $281 million outstanding) to 'B-' from 'B'. The recovery rating on this debt remains '1', indicating S&P's expectation for very high (90% to 100%) recovery in a default. S&P also lowered its issue-level rating on GenOn Americas LLC's (GenAM) $850 million unsecured notes ($695 million outstanding) to 'CCC' from 'CCC+'. The recovery rating on this debt remains a '3' and indicates S&P's expectation for meaningful recovery (50% to 70%, at the high end of the range) in a default. However, S&P raised the issue-level rating on GenOn Mid-Atlantic LLC's (GenMA) $770 million of pass-through certificates (about $490 million outstanding) to 'B-' from 'CCC+' and revised the recovery rating to '1' from '3'. This revision follows a reassessment of the priority of the pass through certificates relative to other GenMA obligations and the determination that their priority would remain senior under all default scenarios. GenOn's credit profile has weakened following a progressively weaker forward power curve due to depressed natural gas prices, and lower gross margins due to stagnating demand and milder weather patterns, resulting in an accelerated weakening of financial measures. While the capacity performance incremental auctions provide some uplift in margins, they do not offset the energy margin compression, and do not take effect until 2018. This leads S&P to rely more heavily on the company's liquidity profile. Although the company currently has over $1.14 billion in liquidity, GenMA will make a $130 million lease payment and GenOn will make a $115 million interest payment in June. An approaching $725 million maturity in mid-2017 amid weaker cash flows results in less than adequate liquidity assessment. Additionally, S&P believes that GenOn would not likely have ready access to capital markets under similar market conditions. "We believe that GenOn is vulnerable under the current forward curve to default prospects that exceed a 1 to 2 probability. Although we think GenOn has adequate cash balances and is unlikely to default on obligations before mid-2017, the longer-term prospects appear unsustainable without favorable business, financial and economic conditions," said S&P Global Ratings credit analyst Aneesh Prabhu. S&P also sees the prospects of a distressed exchange as increasingly likely. According to S&P's criteria, if an issuer credit rating is 'B-' or lower, an exchange would ordinarily be viewed as distressed and, hence, as a de facto restructuring. S&P notes the headwinds in the merchant power sector that are resulting in continuing pressure on cash flow. The negative outlook on GenOn reflects the continuing pressure on financial measures, which S&P believes will likely weaken. S&P thinks GenOn is now increasingly dependent upon favorable business, financial, and economic conditions that cause an increase in forward power price curves and allow the company to meet its financial commitments. While S&P do not expect a default in 2016 because of significant cash balances, the negative outlook also reflects the prospects that GenOn may consider distressed exchange offers given the price decline in its debt issues. GUIDED THERAPEUTICS: Reports Record First Quarter 2016 Results -------------------------------------------------------------- Guided Therapeutics, Inc., filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss attributable to common stockholders of $340,000 on $262,000 of sales for the three months ended March 31, 2016, compared to a net loss attributable to common stockholders of $1.27 million on $127,000 of sales for the same period in 2015. As of March 31, 2016, Guided Therapeutics had $2.36 million in total assets, $7.81 million in total liabilities and a total stockholders' deficit of $5.45 million. At March 31, 2016, the Company had a working capital deficit of approximately $4.0 million and the stockholders' deficit was approximately $5.5 million, primarily due to recurring net losses from operations and dividends on preferred stock, offset by proceeds from the exercise of options and warrants and proceeds from the sales of stock. Cash on hand at March 31, 2016, was approximately $56,000, as compared to approximately $35,000 at Dec. 31, 2015. Net inventory on hand at the end of the quarter was approximately $1.3 million. The Company continues to manage cash and liquidity with austerity. "The first quarter was a record for shipping single-use disposable LuViva cervical guides with almost 24,000 going to our Turkish distributor," said Gene Cartwright, chief executive officer of Guided Therapeutics. "We also shipped LuViva devices to Saudi Arabia and Indonesia during the quarter, bringing to 10 the number of units in the Middle East and 15 in Southeast Asia. As of the end of the first quarter, we shipped a total of 97 LuViva devices and approximately 60,000 disposable cervical guides, worldwide." "During the first quarter, we received notification that the Health Services Sector of Nairobi County, Kenya has agreed to purchase an additional five LuViva units for use in the agency's cervical cancer screening program. The planned purchase brings to six the number of LuVivas ordered by Nairobi County which is the largest population center in East Africa, with approximately 900,000 screening-aged women," Mr. Cartwright said. "Finally, we expanded our distribution in Latin America to include the Dominican Republic in the first quarter and subsequently shipped our first unit there," Mr. Cartwright said. "We continue to negotiate with potential partners for distribution and manufacturing rights in China, and are in late stage discussions with a partner for India." A full-text copy of the Form 10-Q is avaiable for free at: https://is.gd/YmGdlT 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. HANCOCK FABRICS: Exclusive Plan Filing Deadline Moved to Aug. 30 ---------------------------------------------------------------- The Hon. Brendan L. Shannon of the U.S. Bankruptcy Court for the District of Delaware has extended, at the behest of Hancock Fabrics, Inc., et al., the exclusive period for the Debtors to file a Chapter 11 plan through and including Aug. 30, 2016, and the exclusive period for the Debtors to solicit acceptances of a Chapter 11 plan through and including Oct. 31, 2016. Without further court order, the Debtors and the Official Committee of Unsecured Creditors may, but are not required to, stipulate to further extend (i) the exclusive period for the Debtors to fila a Plan through and including Oct. 3, 2016, and (ii) the exclusive period for the Debtors to solicit acceptances of that plan through and including Dec. 2, 2016. As reported by the Troubled Company Reporter on May 11, 2016, the Debtors asked the Court to to extend the period during which the Debtors have the exclusive right to file a Plan through and including Oct. 3, 2016, and the period during which the Debtors have the exclusive right to solicit acceptances of the plan through and including Dec. 2, 2016. The Debtors explained that they are presently engaged in numerous activities in winding down the bankruptcy estates, including rejecting leases and executory contracts, marketing their remaining assets for sale, and addressing transition issues. The Debtors are pursuing each of these steps diligently in consultation with appropriate parties. The accomplishment of these tasks in the near future will permit the Debtors to prepare and solicit support for an appropriate plan within the extended Exclusive Periods requested. 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. On Feb. 11, 2016, the U.S. Trustee appointed an Official Committee of Unsecured Creditors. HECK INDUSTRIES: U.S. Trustee Forms 3-Member Committee ------------------------------------------------------ Henry Hobbs, Jr., acting U.S. trustee for Region 5, on May 24 appointed three creditors of Heck Industries, Inc., to serve on the official committee of unsecured creditors. The committee members are: (1) Continental Cement Company 16100 Swingley Ridge Road Suite 230 Chesterfield, MO 63017 Attn: Mike Gordon Phone: (314) 602-7381 Fax: (636) 532-7445 Email: Mike.Gordon@continentalcement.com (2) Holcim (US) Inc. 4511 Bogan Trail Buford, GA 30519-7403 Attn: Mr. Roy D. Dodd Credit Manager Southeast Region Phone: (678) 492-6892 Fax: (877) 465-2193 Email: roy.dodd@lafargeholcim.com (3) Savard Labor & Marine, Inc. 1772 Wooddale Blvd. Baton Rouge, LA 70806 Attn: Cary Prejean, CFO Phone: (225) 930-0685 Fax: (225) 388-5958 Email: cprejean@savardgroup.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. About Heck Industries Heck Industries, Inc., sought Chapter 11 protection (Bankr. M.D. La. Case No. 16-10516) on April 29, 2016, in Baton Rouge, Louisiana. Hon. Douglas D. Dodd is the case judge. The Debtor is the owner of a concrete supply business which has operated throughout Louisiana since 1957. The Debtor's chapter 11 case was precipitated by a severe strain on collection of its accounts receivable due to, among other things, unfortunate weather conditions hampering the Debtor's ability to complete numerous jobs awarded to it. The Debtor estimated $1 million to $10 million in assets and debt. The Debtor's attorneys: STEFFES, VINGIELLO & McKENZIE, L.L.C. William E. Steffes Noel Steffes Melancon Barbara B. Parsons 13702 Coursey Blvd.Building 3 Baton Rouge, Louisiana 70817 Telephone: 225-751-1751 Fax: 225-751-1998 E-mail: nmelancon@steffeslaw.com HERC HOLDINGS: S&P Assigns 'B+' CCR, Outlook Stable --------------------------------------------------- S&P Global Ratings said that it has assigned its 'B+' corporate credit rating to HERC Holdings Inc. and its core operating subsidiary HERC Rentals Inc. The outlook is stable. At the same time, S&P assigned its 'BB' issue-level rating and '1' recovery rating to the company's proposed $1.75 billion ABL facility due 2021. The '1' recovery rating indicates S&P's expectation for very high recovery (90%-100%) in the event of a payment default. Additionally, S&P assigned its 'B+' issue-level rating and '3' recovery rating to the company's proposed aggregate $1.1 billion senior secured second-lien notes due 2022 and 2024. The '3' recovery rating indicates S&P's expectation for meaningful recovery (50%-70%; lower half of the range) in the event of a payment default. "The 'B+' corporate credit rating on HERC reflects our expectation that the company will maintain adjusted debt to EBITDA below 4x and FOCF to adjusted debt in the low-single digit percentage area, providing it with some cushion to absorb potential economic downturns given its good position in the cyclical, competitive, and highly fragmented U.S. equipment rental industry," said S&P Global credit analyst Carissa Schreck. "We believe that HERC will maintain its market position as the third largest North American equipment rental provider in this highly capital-intensive sector. The company's approximately 280 branch locations are located primarily in the U.S. Although the U.S. is HERC's primary territory, it has limited penetration in some parts of the country and is underpenetrated in some large markets. We expect that the company will continue to increase its branch count, both organically and through small acquisitions, and anticipate that it will improve its volume and pricing under our base-case forecast. The scale of HERC's operations is significantly smaller than that of the market leader, United Rentals Inc., as it has less than one-third of the revenue base. The top 10 equipment rental players in the U.S. account for only about one-third of the market and the segment's barriers to entry are limited, which we believe limits participants' pricing power," S&P said. The stable outlook on HERC reflects S&P's expectation that the company will maintain an adjusted debt-to-EBITDA metric of less than 4x and a FOCF-to-adjusted debt ratio in the low-single digit percent area--on average--through 2017, incorporating S&P's belief that overall conditions in the nonresidential construction industry will remain supportive despite expected weakness in oil and gas markets this year. S&P also takes into account the potential volatility of HERC's credit measures in S&P's assessment of its financial risk profile. S&P could lower its ratings on HERC if its operating performance is significantly weaker than S&P had expected, due to economic stress and a significant decline in demand from the company's end markets, causing its adjusted debt-to-EBITDA metric to increase and remain above 4.5x. If S&P expected leverage to increase close to 4.5x, significant positive FOCF could serve as a favorable offsetting factor. Although unlikely over the next 12 months given the company's limited track record operating as a stand-alone public company, S&P could consider upgrading HERC if S&P believes that its adjusted debt-to-EBITDA metric will be around 3x and its EBITDA margins will increase to and remain above 40%. In addition, a FOCF-to-adjusted debt ratio of 5% or more over the cycle would also support an upgrade. HILLCREST INC: Hires Pettyjohn as Co-counsel -------------------------------------------- Hillcrest, Inc. seeks authority from the U.S. Bankruptcy Court for the Western District of Missouri to employ David E. Pettyjohn, Esq., as co-counsel to the Debtor. Hillcrest, Inc. requires Pettyjohn to: (a) advise the Debtor with respect to its powers and duties as Debtor and Debtor-in-Possession in the continued management and operation of its businesses; (b) attend meetings and negotiate with representatives of creditors and other parties in interest when co-counsel Susan Bratcher is unavailable; (c) take all necessary action to protect and preserve the estate, including the prosecution of actions on its behalf, the defense of any actions commenced against the Debtor's estate, and objections to claims filed against the estate; (d) prepare on behalf of Debtor adversary petition and all related documents and hearings, meetings, and related matters; (e) appear before the Bankruptcy Court and the U.S. Trustee; and protect the interest of the Debtor's estate before the Bankruptcy Court and the U.S. Trustee when co-counsel Bratcher is unavailable. Pettyjohn will be paid at these hourly rates: Attorneys $200-$300 Paralegals $95-$150 Pettyjohn will also be reimbursed for reasonable out-of-pocket expenses incurred. David E Pettyjohn, Esq., 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. Pettyjohn can be reached at: David E Pettyjohn, Esq. 5600 NE Antioch Road Kansas City, MO 64119 Tel: (816) 452-1800 About Hillcrest Inc. Hillcrest Inc. sought protection under Chapter 11 of the Bankruptcy Code (Bankr. W.D. Mo. Case No. 16-40054) on January 12, 2016. The Debtor is represented by Randall L. Robb, Esq. The Debtor estimated less than $50,000 in assets and debt. HORSEHEAD HOLDING: Hires Suncorp as Valuator -------------------------------------------- The Official Committee of Unsecured Creditors of Horsehead Holding Corp., et al., seeks authority from the U.S. Bankruptcy Court for the District of Delaware to retain Suncorp Valuations as valuator to the Committee, nunc pro tunc to May 9, 2016. The Committee requires Suncorp to: (i) provide expert witness testimony either in Court, at a deposition, or both; (ii) participate in meetings or negotiations with the Committee, its counsel or other third parties; and (iii) provide additional information to third parties. Suncorp will be paid at these hourly rates: William K. Domoe $350 William Schoenecker $300 Marcia Teal $400 Suncorp will perform all work necessary to prepare a valuation report on the Mooresboro Facility based on the hourly rates set forth, but in an amount not to exceed $50,000, plus reimbursement of its reasonable out-of-pocket disbursements. Suncorp will also be reimbursed for reasonable out-of-pocket expenses incurred. Tom A. Gardiner, President and CEO of Suncorp Valuations, 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. Suncorp can be reached at: Tom A. Gardiner SUNCORP VALUATIONS 101 Falls Road, Suite 700 Grafton, WI 53024 Tel: (262) 240-0602 Fax: (306) 652-8373 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 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. HUNT OIL: S&P Lowers CCR to 'BB-' on Geopolitical Risks ------------------------------------------------------- S&P Global Ratings lowered its corporate credit rating on Hunt Oil Co. to 'BB-' from 'BB+'. The rating outlook is negative. "The downgrade reflects our view that Hunt's credit measures will remain below expectations for the 'BB+' rating primarily due to the interruption of shipments from Yemen LNG and because of low oil prices," said S&P Global Ratings credit analyst Ben Tsocanos. Distributions from the project, in which Hunt holds a 17.5% interest, represent a significant proportion of S&P's projected cash flow for the company when the project is shipping LNG. The negative outlook reflects the risk that delays or disruption in resumption of shipments could delay distributions from the project into late 2017. To revise the outlook to stable would likely require resumption of distributions to shareholders from Yemen LNG after the project finance debt service reserve has been replenished. The rating on Hunt reflects S&P's assessment of the company's satisfactory business risk, aggressive financial risk, and strong liquidity. The negative rating outlook on Hunt primarily reflects S&P's assessment of the potential that delays in resumption of shipments from Yemen LNG could result in credit measures that are below S&P's expectations for the rating. S&P could lower the rating if it do not forecast improving credit measures, with FFO to debt remaining below 12%. Such a scenario would likely occur if resumption of shipments from Yemen LNG were delayed beyond late 2016 or if oil prices are below S&P's expectations. S&P could revise the outlook to stable if it expects credit measures to improve to levels consistent with the rating, such that FFO improves substantially above 12% consistently in 2017 and thereafter. Such a scenario is likely to occur if shipments from Yemen LNG resume by the end of 2016 and the company begins to receive distributions from the project in late 2017 and S&P's outlook for oil prices rises. ICAGEN INC: Grants Options Under 2015 Stock Incentive Plan ---------------------------------------------------------- The Board of Directors of Icagen, Inc., granted under the Company's 2015 Stock Incentive Plan: (i) options to purchase 12,500 shares of common stock, par value $0.001 per share of the Company to five members of the Board (which equals options to purchase an aggregate of 62,500 shares of Common Stock); (ii) options to purchase 100,000 shares of Common Stock to the Company's Chief Scientific Officer; and (iii) options to purchase an aggregate of 140,000 shares of Common Stock to certain employees. All of the stock options granted have an exercise price of $3.50 per share. The options granted to (i) the directors vest on a pro rata basis monthly over 36 months and expire ten years after the date of grant; (ii) the Company's Chief Scientific Officer vest as follows: 25,000 vest on June 30, 2016, and the remaining 75,000 vest pro rata on a monthly basis over 36 months and expire ten years after the date of grant; and (iii) the employees vest on an annual basis over four years pro rata on a monthly basis over 48 months other than a grant of options to purchase 20,000 shares of common stock that vest over a four year period based upon the attainment of certain milestones and expire ten years after the date of grant. On May 19, 2016, the Board granted under the Company's Plan options to purchase an aggregate of 62,500 shares of Common Stock to the members of the Board (Timothy Tyson, Clive Kabatznik, Vincent Palmieri, Michael Taglich and Edward Roffman were each granted options to purchase 12,500 shares of Common Stock). In addition, Douglas Krafte, the Company's Chief Scientific Officer, was granted an option to purchase 100,000 shares of Common Stock. About Icagen Icagen, Inc., formerly known as XRpro Sciences, Inc., is a biopharmaceutical company, focuses on the discovery, development, and commercialization of orally-administered small molecule drugs that modulate ion channel targets. Its drug candidates include ICA-105665, a small molecule compound that targets specific KCNQ ion channels for the treatment of epilepsy and pain, which is in Phase II clinical trial stage; and a compound that targets the sodium channel Nav1.7 for the treatment of pain, which is in Phase I clinical trial stage. Icagen reported a net loss applicable to common stock of $8.72 million on $1.58 million of sales for the year ended Dec. 31, 2015, compared to a net loss applicable to common stock of $569,288 on $541,794 of sales for the year ended Dec. 31, 2014. As of Dec. 31, 2015, Icagen had $12.9 million in total assets, $11.2 million in total liabilities, $133,350 in convertible redeemable preferred stock, and $1.57 million in total stockholders' equity. RBSM LLP, in New York, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2015, citing that the Company has incurred recurring operating losses, which has resulted in an accumulated deficit of approximately $22.143 million at Dec. 31, 2015. These conditions among others raise substantial doubt about the Company's ability to continue as a going concern. ICAGEN INC: Incurs $1.10 Million Net Loss in First Quarter ---------------------------------------------------------- Icagen, Inc., filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $1.10 million on $900,866 of sales for the three months ended March 31, 2016, compared to a net loss of $1.43 million on $30,653 of sales for the same period in 2015. As of March 31, 2016, Icagen had $11.2 million in total assets, $10.5 million in total liabilities, $133,000 in convertible redeemable preferred stock and $561,000 in total stockholders' equity. "We have a history of annual losses from operations since inception and we have primarily funded our operations through sales of our unregistered equity securities and cash flows generated from government contracts and grants and more recently from commercial customers and the settlement of a lawsuit. We are generating funds from commercial customers and government grants, however, we continue to experience losses and will need to raise additional funds to meet our working capital requirements, despite this we are dependent upon the outcome of settlement discussions we are having in our lawsuits. We believe that our existing cash and cash equivalents will not be sufficient to meet our anticipated cash needs for the next twelve months. We will need to generate additional revenue from operations and/or obtain additional financing to pursue our business strategy, to respond to new competitive pressures or to take advantage of opportunities that may arise. These factors raise substantial doubt about our ability to continue as a going concern. As a result, our independent registered public accounting firm included an explanatory paragraph in its report on our consolidated financial statements as of and for the year ended December 31, 2015 with respect to this uncertainty. To meet our financing needs, we are considering multiple alternatives, including, but not limited to, additional equity financings, debt financings and/or funding from partnerships or collaborations. There can be no assurance that we will be able to complete any such transactions on acceptable terms or otherwise. "As of March 31, 2016 our Company had cash totaling $818,797, other current assets totaling $1,247,994 and total assets of $11,197,494. We had total current liabilities of $2,045,592 and a net working capital of $21,199. Total liabilities were $10,503,127, including deferred purchase consideration of $8,457,535. The deferred purchase consideration includes a net present value discount of $2,042,465 (made up of a gross present value discount of $2,468,700 less imputed interest expense of $426,235), the gross amount still due in terms of the acquisition agreement is $10,500,000 of which $500,000 is dependent on the achievement of a revenue target with Pfizer and $10,000,000 is due based on a potential earn out charge of 10% of gross revenues commencing in January 2017. Our Series A convertible redeemable preferred stock totaled $133,350 resulting in a stockholders’ equity of $561,017. "Should we not achieve our forecasted operating results or should strategic opportunities present themselves such that additional financial resources would present attractive investing opportunities for our company, we may decide in the future to issue debt or sell our company's equity securities in order to raise additional cash. We cannot provide any assurances as to whether we will be able to secure any additional financing, or the terms of any such financing transaction if one were to occur. "As of March 31, 2016, we owed $133,592 in accordance with the terms of a Project Participation Agreement with the Incorporated County of Los Alamos that we entered into in September 2006. The loan bears interest at a rate of 5% per annum, is for a thirteen-year term, with monthly repayments of $3,547 that commenced on September 21, 2009. Due to the closure of the Los Alamos site, the County of Los Alamos has informed us that the full balance of the loan is now due and payable." A full-text copy of the Form 10-Q is available for free at: https://is.gd/jOWpWu About Icagen Icagen, Inc., formerly known as XRpro Sciences, Inc., is a biopharmaceutical company, focuses on the discovery, development, and commercialization of orally-administered small molecule drugs that modulate ion channel targets. Its drug candidates include ICA-105665, a small molecule compound that targets specific KCNQ ion channels for the treatment of epilepsy and pain, which is in Phase II clinical trial stage; and a compound that targets the sodium channel Nav1.7 for the treatment of pain, which is in Phase I clinical trial stage. Icagen reported a net loss applicable to common stock of $8.72 million on $1.58 million of sales for the year ended Dec. 31, 2015, compared to a net loss applicable to common stock of $569,288 on $541,794 of sales for the year ended Dec. 31, 2014. RBSM LLP, in New York, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2015, citing that the Company has incurred recurring operating losses, which has resulted in an accumulated deficit of approximately $22.143 million at Dec. 31, 2015. These conditions among others raise substantial doubt about the Company's ability to continue as a going concern. IMPLANT SCIENCES: Incurs $4.09 Million Net Loss in Third Quarter ---------------------------------------------------------------- Implant Sciences Corporation reported a net loss of $4.09 million on $10.9 million of total revenues for the three months ended March 31, 2016, compared to a net loss of $5.73 million on $3.30 million of total revenues for the same period in 2015. For the nine months ended March 31, 2016, Implant Sciences reported a net loss of $8.32 million on $35.6 million of total revenues compared to a net loss of $17.4 million on $7.31 million of total revenues for the nine months ended March 31, 2015. As of March 31, 2016, the Company had $15.6 million in total assets, $100 million in total liabilities, and a total stockholders' deficit of $84.6 million. Earnings before interest, income taxes, depreciation and amortization, stock-based compensation, warrants issued to non-employees and common stock issued to consultants, which is reconciled to net income in this press release, was a loss of $994,000 in the three months ended March 31, 2016, compared to a loss of $2,266,000 in the comparable prior year period and for the nine months ended March 31, 2016, adjusted EBITDA income of $1,023,000, compared to a loss of $8,108,000 in the comparable prior year period. Dr. William McGann, CEO of Implant Sciences, commented, "We are pleased with the results of our recently completed quarter, a quarter in which we recorded revenues of $10.9 million and have achieved nine month revenues of $35.6 million. We're equally pleased with the improvement in our operations which have resulted in substantial reductions in net operating losses of $1.6 million and $9.1 million, in the quarter and the nine month period, respectively. The improvement in our operating results are tempered somewhat by costs associated with our strategic alternative review and other one-time charges, which amounted to $559,000 and $908,000 in the three month and nine month periods, respectively. Shipments under the delivery order with the Transportation Security Administration are ongoing and on schedule. During the just concluded quarter we delivered QS-B220’s to the Canadian Air Transport Security Authority, the significance of which cannot be dismissed. With this win, we believe that we are now the leading provider of ETD in North America. The production ramp continues unabated, demonstrating our capabilities from not only a manufacturing and supply chain perspective, but also from a working capital management perspective. Our execution in all facets is not perfect, but we are striving for and demonstrating continuous improvement in managing this exponential growth. We continue to generate the cash flow required from internal operations to fund the significant working capital required to deliver the record revenues being reported today. We're continuing to invest and expect to increase our investment in technology, with the intent to introduce new product that will increase the size of the security market we can penetrate." A full-text copy of the press release is available for free at: https://is.gd/K4qINK About Implant Sciences Implant Sciences Corporation (OBB: IMSC.OB) -- http://www.implantsciences.com/-- develops, manufactures and sells sensors and systems for the security, safety and defense (SS&D) industries. "Despite our current sales, expense and cash flow projections and Marcum LLP, in Boston, Massachusetts, issued a "going concern" qualification on the consolidated financial statements for the year ended June 30, 2015, citing that the Company has had recurring net losses and continues to experience negative cash flows from operations. As of Sept. 15, 2015, the Company's principal obligation to its primary lenders was approximately $65,046,000 and accrued interest of approximately $15,393,000. The Company is required to repay all borrowings and accrued interest to these lenders on March 31, 2016. These conditions raise substantial doubt about its ability to continue as a going concern. INDRA HOLDINGS: S&P Affirms 'B-' CCR, Outlook Stable ---------------------------------------------------- S&P Global Ratings affirmed its 'B-' corporate credit rating on Cincinnati, Ohio-based Indra Holdings Corp. The outlook is stable. Concurrently, S&P affirmed its issue-level rating on the company's $245 million first-lien term loan due 2021 at 'B-'. The '4' recovery rating on this facility, which indicates S&P's expectation for average (30% to 50%, at the low end of the range) recovery in the event of a payment default, remains unchanged. "The affirmation of our ratings reflects the expectation that Indra will maintain adequate liquidity even as their credit metrics will remain weak as the U.S. retail market continues to struggle," said S&P Global Ratings credit analyst Suyun Qu. "We expect modest free cash flow generation from the company to service all the required fixed costs, with no near-term debt maturities." S&P Global Ratings' ratings on Indra, the maker of Totes, Isotoner, and Acorn branded rain-wear, footwear, and cold weather accessories, reflect the company's reliance on weather-dependent products. This includes winter and rain accessories such as gloves, slippers, umbrellas, and ponchos. The recent warm winter across the U.S. and dry summer in the West weakened the company's top line. This reflects the heavily seasonal sales pattern and dependence on the holiday and winter month to generate sales, EBITDA, and cash flow. S&P sees the company's narrow business focus as a key risk. The company is concentrated in the wholesale channel, further weakening the company's top line, as retailers cut back on orders and control inventory levels. The company sells its products mainly to mass merchants, department stores, and national chain retailers in the U.S., Canada, and Europe. S&P expects 2016 revenue and EBITDA to decline double digits from 2015, largely a result of the unseasonably warm winter and retailers delaying inventory purchases. S&P also expects Indra's EBITDA margin to be lower in 2016 when compared to 2015, as the foreign currency hedge gain in 2015 is replaced with a hedge loss. As such, S&P expects Indra's debt-to-EBTIDA ratio to remain elevated in the 7x area for the next 12 to 24 months. Despite these challenges, S&P believes the company is prudent in managing its margin and working capital such that S&P projects positive free cash flow generation and no outstanding balance on its asset-backed lending revolver outside of peak working capital needs. Indra is also owned by financial sponsors, which S&P believes is likely to adopt and maintain an aggressive financial policy for companies they own, and S&P expects Indra will maintain a highly leveraged capital structure. The stable outlook reflects S&P's expectation that the company will continue to have adequate liquidity with no near-term debt maturities. S&P projects the company to generate modest positive discretionary cash flow, as product innovations, e-commerce platforms, and ongoing cost efficiency initiatives mitigate declining top line performance. As a result, S&P believes credit metrics will remain weak but in line with our rating expectations. INTERNATIONAL TECHNICAL: Wants Aug. 19 Plan Filing Deadline ----------------------------------------------------------- International Technical Coatings, Inc., asks the U.S. Bankruptcy Court for the District of Arizona to further extend the Debtor's exclusive period to file a Chapter 11 plan through and including Aug. 19, 2016, and the exclusive period for the Debtor to solicit acceptance of that plan through and including Oct. 19, 2016. As reported by the Troubled Company Reporter on March 31, 2016, the Court previously extended, at the behest of the Debtor, the period of time during which the Debtor alone holds the right to file a plan to June 16, 2016, and solicit votes from creditors to Aug. 14, 2016. The Debtor says that it is actively working toward filing a plan. The Debtor has continued to manage and run operations at both the Phoenix Facility and the Columbus Facility, and has been paying their expenses as they come due as set forth in the Court's approved cash collateral orders. Bank of America, TGF Holdings, LLC, the Bank's successor lender (affiliated with Tommy Fisher), and the Committee of Unsecured Creditors have consented to the Debtor's motion to use the cash collateral. The Debtor has diligently worked with prospective lenders to obtain refinancing needed to "take out" the TGF secured loan (the $25.5 million loan previously held by Bank of America). The refinancing process has gone well thus far. In addition, the refinancing process has proceeded in accordance with a time frame that the Debtor communicated to the Committee, Fisher (and previously the Bank). Under that time line, the Debtor committed to filing a plan backed by a firm lending commitment by no later than Aug. 1, 2016. Presently the Debtor has two term sheets, and is expecting at least two more, from lenders that would serve as a feasible basis for a refinance of its outstanding loan. As the Debtor has indicated to Fisher and the Committee, the Debtor anticipates a plan that proposes to take out the TGF loan and pay the unsecured creditors in full within approximately three years. The Debtor has previously furnished detailed reasonable projections supporting the economics of a plan to the Committee, Fisher and previously Bank of America. In addition to the negotiations with potential refinancing sources, the Debtor has had discussions with the Committee regarding various matters related to the treatment of their constituents and the terms of a plan reorganization. Those proposed terms include discussions about payment of 503(b)(9) claims, the timeline for payment of general unsecured claims, contributions by Johnnie Caldwell to assist in funding the plan, and the management structure of the reorganized 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. INTERVENTION ENERGY: Hires Rust/Omni as Claims and Noticing Agent ----------------------------------------------------------------- Intervention Energy Holdings, LLC., et al., seek authority from the U.S. Bankruptcy Court for the District of Delaware to employ Rust Consulting/Omni Bankruptcy as claims and noticing agent to the Debtors. Intervention Energy requires Rust/Omni to: a) prepare and serve required notices and documents in these chapter 11 cases in accordance with the Bankruptcy Code and the Federal Rules of Bankruptcy Procedure in the form and manner directed by the Debtors and/or the Court, including: (i) notice of the commencement of these chapter 11 cases, (ii) notice of any claims bar date, (iii) notices of transfers of claims (if any), (iv) notices of objections to claims and objections to transfers of claims (if any), (v) notices of any hearings on a disclosure statement and confirmation of the Debtors' Plan, including under Federal Rule of Bankruptcy Procedure 3017(d), (vi) notice of the effective date of the Plan, and (vii) all other notices, orders, pleadings, publications, and other documents as the Debtors or Court may deem necessary or appropriate for an orderly administration of these chapter 11 cases; b) maintain an official copy of the Debtors' schedules of assets and liabilities and statements of financial affairs (collectively, the "Schedules"), listing the Debtors' known creditors and the amounts owed, if requested; c) maintain (i) a list of all potential creditors, equity holders, and any parties in interest and (ii) a "core" mailing list consisting of all parties described in Federal Rule of Bankruptcy Procedure 2002(i), (j), and (k) and those parties that have filed a notice of appearance under Federal Rule of Bankruptcy Procedure 9010; update and make those lists available upon request by any party in interest or the Clerk; d) furnish a notice to all potential creditors of the last date for filing proofs of claim and a form for filing a proof of claim, after such notice and form are approved by the Court, and notify potential creditors of the existence, amount, and classification of their respective claims as set forth in the Schedules, which Rust/Omni can carry out by including such information (or the lack thereof, in cases where the Schedules indicate no debt due to the subject party) on a customized proof of claim form provided to potential creditors; e) for all notices, motions, orders, or other pleadings or documents served, prepare and file or cause to be filed with the Clerk an affidavit or certificate of service within seven business days of service that includes: (i) either a copy of the notice served or the docket number(s) and title(s) of the pleading(s) served, (ii) an alphabetical list of persons to whom it was mailed with their addresses, (iii) the manner of service, and (iv) the date served; f) process any proofs of claim received, including those received by the Clerk, check processing for accuracy, and maintain the original proofs of claim in a secure area; g) maintain the official claims register (if any) for each Debtor (collectively, the "Claims Registers") on behalf of the Clerk; provide the Clerk, upon the Clerk's request, with certified, duplicate unofficial Claims Registers; and specify in the Claims Registers the following information for each claim docketed: (i) the claim number assigned, (ii) the date received, (iii) the name and address of the claimant and agent, if applicable, who filed the claim, (iv) the amount asserted, (v) the asserted classification(s) of the claim (e.g., secured, unsecured, priority), (vi) the applicable Debtor, and (vii) any disposition of the claim; h) implement necessary security measures to ensure the completeness and integrity of the Claims Registers and the safekeeping of the original claims; i) record any transfers of claims and provide any notices of such transfers as required by Federal Rule of Bankruptcy Procedure 3001(e); j) relocate, by messenger or overnight delivery, any court- filed proofs of claim to Rust/Omni's offices, not less than weekly; k) upon completion of the docketing process for any claims received to date for each case, provide to the Clerk copies of the Claims Registers for the Clerk's review (upon the Clerk's request); l) monitor the Court's docket for all notices of appearance, address changes, and claims-related pleadings and orders filed and make necessary notations on or changes to the Claims Register (if any) and any service or mailing lists, including the identification and elimination of duplicative names and addresses from such lists; m) identify and correct any incomplete or incorrect addresses in any mailing or service lists; n) assist in the dissemination of information to the public and respond to requests for administrative information on these chapter 11 cases as directed by the Debtors or the Court, including through a case website or call center; o) if these chapter 11 cases are converted to cases under chapter 7 of the Bankruptcy Code, contact the Clerk's office within three days of notice to Rust/Omni of entry of the order converting the cases; p) thirty days before the close of these chapter 11 cases, to the extent practicable, request that the Debtors submit to the Court a proposed order dismissing Rust/Omni as Claims and Noticing Agent and terminating its services in such capacity upon completion of its duties and responsibilities and upon the closing of these chapter 11 cases; q) within seven days of notice to Rust/Omni of entry of an order closing these chapter 11 cases, provide to the Court the final version of the Claims Registers as of the date immediately before the close of these chapter 11 cases; and r) at the close of these chapter 11 cases, box and transport all original documents, in proper format, as provided by the Clerk's office, to (i) the Federal Archives Record Administration, located at Central Plains Region, 200 Space Center Drive, Lee's Summit, MO 64064 or (ii) any other location requested by the Clerk's office. Rust/Omni will be paid at these hourly rates: Clerical Support $26.25-$37.50 Project Specialists $48.75-$63.75 Project Supervisors $63.75-$78.75 Consultants $78.75-$105.00 Technology/Programming $82.50-$123.75 Senior Consultants $131.25-$146.25 Equity Services $168.75 Prior to the Petition Date, the Debtors provided Rust/Omni a $5,000 retainer. Rust/Omni seeks to first apply the Retainer to all prepetition invoices, which Retainer would be replenished to the original retainer amount, and thereafter Rust/Omni may hold the Retainer during the pendency of these Chapter 11 Cases as security for the payment of fees and expenses incurred under the Engagement Agreement. Rust/Omni will also be reimbursed for reasonable out-of-pocket expenses incurred. Paul H. Deutch, Executive Managing Director of Rust Consulting/Omni Bankruptcy 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. Rust/Omni can be reached at: Paul H. Deutch RUST CONSULTING/OMNI BANKRUPTCY 1120 Avenue of the Americas, 4th Floor New York, NY 10036 Tel: (212) 302-3580 Fax: (212) 302-3820 About Intervention Energy Intervention Energy Holdings, LLC filed for Chapter 11 protection (Bankr. D. Del. Case No. 16-11247) on May 20, 2016. The petition was signed by John R. Zimmerman, president. The Hon Kevin J. Carey presides over the case. The Debtor estimated assets of $100 million to $500 million and estimated debts of $100 million to $500 million. Intervention Energy Holdings listed Statoil Oil & Gas LP as its largest unsecured creditor holding a trade claim of $3.80 million. IRON MOUNTAIN: S&P Assigns 'BB-' Rating on Proposed $500MM Notes ---------------------------------------------------------------- S&P Global Ratings assigned its 'BB-' issue-level rating and '3' recovery rating to Iron Mountain Inc.'s (Iron Mountain's) proposed $500 million senior unsecured notes due 2021 and Iron Mountain US Holdings Inc.'s proposed $250 million senior unsecured notes due 2026. The '3' recovery rating indicates S&P's expectation for meaningful recovery (50%-70%; lower half of the range) of principal in the event of a payment default. Iron Mountain will use the proceeds to repay the bridge loan it used to fund its acquisition of Recall Holdings Ltd. The issue-level rating is at the same level as S&P's corporate credit rating on Iron Mountain. Pro forma for the debt offering, Iron Mountain's adjusted leverage remains virtually unchanged in the mid-5x area as of March 31, 2016. S&P expects leverage to decrease to the low-5x area by the end of 2017 and to below 5x by year-end 2018 as the company realizes the synergies from the Recall acquisition over the next few years. S&P assesses Iron Mountain's business risk profile as satisfactory, reflecting the company's position as the largest records management company globally. The business benefits from low customer attrition, high switching costs, and long-term storage contracts that provide stable and recurring revenue. These strengths are somewhat offset by the threat of digital storage reducing physical storage volume over time. The stable rating outlook on Iron Mountain reflects S&P's expectation that the company will be able to leverage its increased size, scale, and geographic diversification to generate low- to mid-single-digit organic revenue growth while improving its operating margins. RATINGS LIST Iron Mountain Inc. Corporate Credit Rating BB-/Stable/-- New Ratings Iron Mountain Inc. $500 mil senior unsecured notes due 2021 BB- Recovery Rating 3L Iron Mountain US Holdings Inc. $250 mil senior unsecured notes due 2026 BB- Recovery Rating 3L ITUS CORP: Incurs $1.27 Million Net Loss in Second Quarter ---------------------------------------------------------- ITUS Corporation filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $1.27 million on $0 of revenue for the three months ended March 31, 2016, compared to a net loss of $2.23 million on $25,000 of total revenue for the three months ended March 31, 2015. The Company also reported a net loss of $2.86 million on $0 of revenue for the six months ended April 30, 2016, compared to net income of $1.51 million on $9.16 million of total revenue for the same period in 2015. As of April 30, 2016, ITUS had $7.20 million in total assets, $4.64 million in total liabilities and $2.55 million in total shareholders' equity. A full-text copy of the Form 10-Q is available for free at: https://is.gd/d70rJ3 About ITUS Corporation ITUS Corp. -- http://www.ITUScorp.com/-- develops and acquires patented technologies for the purposes of patent monetization and patent assertion. The company currently has 10 patent portfolios in the areas of Key Based Web Conferencing Encryption, Encrypted Cellular Communications, E-Paper(R) Electrophoretic Display, Nano Field Emission Display ("nFED"), Micro Electro Mechanical Systems Display ("MEMS"), Loyalty Conversion Systems, J-Channel Window Frame Construction, VPN Multicast Communications, Internet Telephonic Gateway, and Enhanced Auction Technologies. CopyTele changed its name to "ITUS Corporation" on Sept. 2, 2014, to reflect the Company's change in its business operations. ITUS Corporation reported a net loss of $1.37 million on $9.25 million of total revenue for the year ended Oct. 31, 2015, compared to a net loss of $9.60 million on $3.66 million of total revenue for the year ended Oct. 31, 2014. J & N ACQUISITIONS: Exclusive Plan Filing Period Ends on June 13 ---------------------------------------------------------------- The Hon. Paul G. Hyman, Jr., of the U.S. Bankruptcy Court for the Southern District of Florida has extended, at the behest of J & N Acquisitions, Inc., the exclusivity period within which the Debtor is required to file its plan and disclosure statement through and including June 13, 2016. As reported by the Troubled Company Reporter on May 16, 2016, the Debtor sought the extension, saying that it is currently in negotiations with secured creditors. The Debtor has otherwise complied with all Chapter 11 reporting requirements and no other creditor or interested party would be prejudiced by the delay. Headquartered in Port St. Lucie, Florida, J & N Acquisitions, Inc., dba Kids Place filed for Chapter 11 bankruptcy protection (Bankr. S.D. Fla. Case No. 15-30152) on Nov. 16, 2015, listing $1.14 million in total assets and $2.15 million in total liabilities. The petition was signed by Janice Williams, CEO. Judge Paul G. Hyman, Jr., presides over the case. Malinda L Hayes, Esq., at Markarian Frank White-Boyd & Hayes serves as the Debtor's bankruptcy counsel. JAMES HALLIDAY LLC: U.S. Trustee Unable to Appoint Committee ------------------------------------------------------------ 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 James W. Halliday, Jr., DMD, LLC. James W. Halliday, Jr., DMD, LLC, sought protection under Chapter 11 of the Bankruptcy Code in the District of Alaska (Anchorage) (Case No. 16-00088) on April 14, 2016. The petition was signed by James W. Halliday, managing member. The Debtor is represented by David H. Bundy, Esq., at David H. Bundy, P.C. The Debtor estimated both assets and liabilities in the range of $1 million to $10 million. JAMES HOFFMAN: Ocwen's Secured Claim Can't Be Modified, Court Rules ------------------------------------------------------------------- Judge John K. Sherwood of the U.S. Bankruptcy Court for the District of New Jersey ruled that Ocwen Loan Servicing, LLC's claim against James C. Hoffman is not secured by property other than the Debtor's principal residence, it may not be modified pursuant to Section 1123(b)(5) of the Bankruptcy Code. A full-text copy of Judge Sherwood's May 24, 2016 Opinion is available at http://bankrupt.com/misc/HOFFMAN490524.pdf The bankruptcy case is In Re: JAMES C. HOFFMAN, Case No. 15-10156 (JKS)(Bankr. D.N.J.). APPEARANCES: Dean G. Sutton, Esq. 18 Green Rd. PO Box 187 Sparta, New Jersey 07871 Counsel for Debtor -- and -- Veroneque A. T. Blake, Esq. Udren Law Offices P.C. Woodcrest Corporate Center 111 Woodcrest Road, Suite 200 Cherry Hill, New Jersey 08003-3620 Counsel for Ocwen JOHN JOHNSON: Court Enforces Automatic Stay Against RFF ------------------------------------------------------- Judge John E. Hoffman, Jr., of the United States Bankruptcy Court for the Southern District of Ohio, Eastern Division, Columbus, granted John Joseph Louis "Jack" Johnson, III's motion to enforce the automatic stay and sets a hearing on the issues of (1) the amount of the Debtor's attorneys' fees that RFF Family Partnership, LP must pay and (2) whether punitive damages should be imposed against RFF and if so, in what amount. In this contested matter, the Debtor seeks to enforce the automatic stay against RFF Family Partnership, LP and recover damages for its willful violation of the stay. The Debtor is a professional hockey player with the Columbus Blue Jackets of the National Hockey League who filed a voluntary petition for relief under Chapter 11 of the Bankruptcy Code. The Debtor has since then sought to convert his case to Chapter 7, resulting in a spate of litigation in this Court between the Debtor and a group of his largest creditors, who seek to share in the Debtor's significant future earnings. One such creditor is RFF. Alleging that the Debtor defrauded it, RFF instituted a prepetition arbitration proceeding against the Debtor and several related parties who had issued it a note allegedly secured by the Debtor's player contract. The Debtor asserted counterclaims against RFF in the arbitration, asserting that it was RFF that defrauded him and his co-borrowers. The Debtor also denied that RFF has a perfected security interest in his player contract. Before the arbitration could proceed further, the Debtor filed his bankruptcy petition. Since then, RFF has continued to demonstrate its desire for one thing: the Debtor's multi-million dollar salary. But the automatic stay, which was triggered upon the Debtor's bankruptcy filing, prevented RFF from asserting any rights in the Debtor's income outside of this Court and from obtaining findings that might impair the Debtor's claims against RFF. This is because the automatic stay prohibits any attempt by a creditor to take an action to exercise control over property of the Debtor's bankruptcy estate, which includes the Debtor's employment contract and his claims against RFF. But without seeking relief from the automatic stay or even informing the Debtor of its actions, RFF continued the arbitration proceeding under the pretense of asserting claims against parties related to the Debtor. RFF ultimately obtained an arbitration award containing a finding that it has a perfected security interest in the Debtor's player contract and other findings that would defeat the Debtor's claims against RFF. By obtaining these findings and a state court order confirming the arbitration award, RFF attempted to exercise control over the Debtor's bankruptcy estate—both his salary and his counterclaims—to the detriment of the Debtor and his other creditors. And RFF sought these findings intentionally and with full knowledge of the Debtor's bankruptcy, in willful violation of the automatic stay. A full-text copy of the Opinion and Order dated April 28, 2016 is available at https://is.gd/NEhYVL from Leagle.com. In re JOHN JOSEPH LOUIS JOHNSON, III, Chapter 11, Debtor,Case No. 14-57104 (Bankr. S.D. Ohio). John Joseph Louis Johnson, III, Debtor In Possession, is represented by Daniel A DeMarco, Esq. --dademarco@hahnlaw.com -- Rocco I Debitetto, Marc J Kessler, Esq. -- mjkessler@hahnlaw.com -- Hahn Loeser & Parks LLP. Assistant US Trustee (Col), U.S. Trustee, is represented by Pamela Arndt. JUROMA PROPERTIES: Hires Scura Wigfield as Counsel -------------------------------------------------- Juroma Properties, LLC, seeks authority from the U.S. Bankruptcy Court for the District of New Jersey to employ Scura Wigfield Heyer & Stevens, LLP as counsel to the Debtor. Juroma Properties requires Scura Wigfield to: -- give advice to the Debtor regarding its powers and duties as Debtor in the operation of the Debtor's business; -- represent Debtor in bankruptcy matters and adversary proceedings; and -- perform all legal services for the Debtor which may be necessary. Scura Wigfield will be paid at these hourly rates: Partners $425 Associates $350 Paralegals $150 David L. Stevens, Esq., member of Scura Wigfield Heyer & Stevens, 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. Scura Wigfield can be reached at: David L. Stevens, Esq. SCURA, WIGFIELD, HEYER & STEVENS, LLP 1599 Hamburg Turnpike Wayne, New Jersey 07470 Tel.: (973) 696-8391 About Juroma Properties Juroma Properties, LLC filed for Chapter 11 protection (Bankr. D.N.J. Case No. 16-17985-VFP) on May 10, 2016. The Hon Vincent F. Papalia presides over the case. K.L.M. PLUMBING: U.S. Trustee Unable to Appoint Committee --------------------------------------------------------- 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 K.L.M. Plumbing, Inc. K.L.M. Plumbing, Inc. sought protection under Chapter 11 of the Bankruptcy Code in the Middle District of Florida (Orlando) (Case No. 16-02619) on April 21, 2016. The petition was signed by Kenneth Marsh, president. The Debtor is represented by James H. Monroe, Esq., at James H. Monroe, P.A. The Debtor disclosed total assets of $563,384 and total debts of $1.26 million. KJZ SUNRISE: Hires Bush Ross as General Bankruptcy Counsel ---------------------------------------------------------- KJZ Sunrise, LLC, seeks authority from the U.S. Bankruptcy Court for the Middle District of Florida to employ Bush Ross, P.A. as general bankruptcy counsel to the Debtor. KJZ Sunrise requires Bush Ross to: a. give the Debtor legal advice with respect to its powers and duties as a debtor-in-possession in the continued operation of its business and management of its property; b. take the necessary action to recover any preferential transfers, fraudulent transfers or other voidable transfers; c. enjoin or stay any and all suits and proceedings against the Debtor affecting its ability to continue in business or affecting its property; d. represent the Debtor in any negotiations with potential financing sources, and to prepare any contracts, security agreements, or other documents necessary to obtain financing; e. represent the Debtor with respect to any issues relating to the use of cash collateral; f. represent the Debtor with respect to any issues relating to the rejection, assumption or assignment of the Debtor's executory contracts or unexpired leases; g. represent the Debtor with respect to any issues relating to the resolution of claims asserted against the Debtor; h. represent the Debtor in the negotiation and preparation of any plans of reorganization and disclosure statements; i. represent the Debtor in all adversary proceedings, contested matters and matters involving administration of the bankruptcy case, whether brought in federal or state court; j. prepare on behalf of the Debtor all necessary petitions, answers, motions, orders, reports, and other legal papers; and k. perform all other legal services for the Debtor that may be necessary in the bankruptcy case. Bush Ross will be paid a reasonable attorney's fee and will be reimbursed for reasonable and necessary costs as approved and authorized by the Bankruptcy Court. To the best of the Debtor's knowledge 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. Bush Ross can be reached at: Bush Ross, P.A. 1801 N Highland Ave Tampa, FL 33602 Tel: (813) 224-9255 About KJZ Sunrise KJZ Sunrise, LLC filed for Chapter 11 protection (Bankr. M.D. Fla. Case No. 16-04069) on May 11, 2016. The petition was signed by Ranald Stewart Jr., president. The debtor estimated assets of $10 million to $50 million and estimated debts of $10 million to $50 million. KYLE PARKER: Court Affirms $1.7MM Valuation of Renters Parcel ------------------------------------------------------------- Judge Neil V. Wake of the United States District Court for the District of Arizona affirmed the bankruptcy court's valuation in its September 15, 2015 Valuation Order and dismissed Parker's appeal from the bankruptcy court's September 25, 2015 Stay-Relief Order for lack of jurisdiction In the Appeal styled Kyle Parker, Appellant, v. CSFB 2005-C3 Payson Homes, LLC; Jean Glover, Appellees, No. CV-15-02106-PHX-NVW WO, Consolidated with No. CV-15-02108-PHX-NVW. Kyle Parker appeals from two bankruptcy court orders in a Chapter 11 case. The first determined the value of real property pursuant to 11 U.S.C. Section 506(a). The second granted relief from automatic stay pursuant to 11 U.S.C. Section 362(d). In August 2015, the bankruptcy court heard argument on the value of Kyle Parker's renters parcel which consists of one parcel containing mobile home spaces that are rented to park residents and on Payson Homes' motion to lift the automatic stay. As to the renters parcel, the court rejected Parker's expert's methodology and deemed the $255,000 figure irrelevant. The court accepted Payson Homes' expert's methodology but determined that he underestimated how much it would cost to make a standalone mobile home park. The court estimated it would cost another $1 million, making the correct valuation $1,660,000, not $2,660,000. Accordingly, the court decided Parker's reorganization plan could not be confirmed as written. As to the automatic stay, the court noted that this "2014 case" was aging and doubted whether Parker could "realistically" work with the court's $1,660,000 valuation. The court decided the stay would be lifted unless Parker could confirm a new, binding reorganization plan. The court published these decisions in two short written orders on September 15 and 25, 2015. In the first (the "Valuation Order"), the court valued the renters parcel at $1,660,000, denied confirmation of Parker's plan, and ordered Parker to use the $1,660,000 value in any amended plan. In the second (the "Stay-Relief Order"), the court granted Payson Homes' motion to lift the automatic stay and ordered "the automatic stay is lifted as of 5:00 p.m. on Friday, November 27, 2015, unless Parker confirms a plan that binds Payson Homes or the parties reach a settlement prior to that time and date." Parker appeals from these orders. A full-text copy of the Order dated April 15, 2016 is available at https://is.gd/Eo8CaG from Leagle.com. The bankruptcy case is In re Kyle Parker, Debtor, Bk. No. 14-BK-01941-GBN. Kyle Osley Parker, Appellant, is represented by Aubrey Laine Thomas, Davis Miles McGuire Gardner PLLC & Pernell Whynn McGuire, Davis Miles McGuire Gardner PLLC. Wells Fargo Bank NA, Creditor, is represented by Christopher Julius Dylla, Esq. -- McCarthy Holthus Levine. CSFB 2005-C3 Payson Homes LLC, Appellee, is represented by Jonathan Marc Saffer, Esq. -- jmsaffer@swlaw.com -- Snell & Wilmer LLP & Robert Richard Kinas, Esq. -- rrkinas@swlaw.com -- Snell & Wilmer LLP. Jean Glover, Appellee, is represented by Thomas S Moring, Esq. -- tsm@jaburgwilk.com -- Jaburg & Wilk PC. Ascension Capital Group, BK Notice Party, Pro Se. United States Trustees Office, Trustee, is represented by Patty Chan, US DOJ. LATTICE INC: Amends March 31 Quarterly Report --------------------------------------------- Lattice Incorporated filed with the Securities and Exchange Commission an amended quarterly report on Form 10-Q for the period ended March 31, 2016, to correct the disclosure in Part I, Item 4, relating to Controls and Procedures. "We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in our Exchange Act reports is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow for timely decisions regarding required disclosure. In designing and evaluating the disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management is required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures. Our disclosure controls and procedures were designed to provide reasonable assurance that the controls and procedures would meet their objectives. "As required by SEC Rule 13a-15(b), our management carried out an evaluation, with the participation of our Chief Executive and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures as of the end of the period covered by this report. Based on the foregoing, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were not effective for the reasons described in our Annual Report on Form 10-K for the year ended December 31, 2015 (the "10-K"). The disclosure in Item 9A - "Disclosure Controls and Procedure" and "Management's Report on Internal Control over Financial Reporting" from the 10-K is incorporated herein by reference. We are exploring options to remedy the material weakness in our internal control over financial reporting described in the 10-K." Changes in Internal Controls "There were no other changes in our internal control over financial reporting during the three months ended March 31, 2016 that materially affected or is reasonably likely to materially affect our internal control over financial reporting." A full-text copy of the Form 10-Q/A is available for free at: https://is.gd/38jB4r 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 reported a net loss available to common shareholders of $5.55 million on $7.58 million of revenue for the year ended Dec. 31, 2015, compared to a net loss available to common shareholders of $1.82 million on $8.94 million of revenue for the year ended Dec. 31, 2014. As of March 31, 2016, Lattice had $3.63 million in total assets, $11.15 million in total liabilities and a total shareholders' deficit of $7.52 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, 2015, citing that the Company has a working capital deficit and requires additional working capital to meet its current liabilities. These factors raise substantial doubt about the Company's ability to continue as a going concern. LEO MOTORS: Inks $10 Million Purchase Agreement with Investor ------------------------------------------------------------- Leo Motors, Inc., on May 17, 2016, entered into a Securities Purchase Agreement with an accredited investor, pursuant to which the Company may issue and sell to the Investor $10,000,000 of the Company's registered common stock. The parties also entered into a Registration Rights Agreement dated May 17, 2016, whereby the Company has agreed to provide certain registration rights under the Securities Act of 1933, as amended, and applicable state laws. Pursuant to the Agreements, the Company shall register the Shares pursuant to a registration statement on Form S-1 (or on such other form as is available to the Company within 45 days of the execution of the Agreements). In addition, the Company agreed to use its best efforts to cause such registration statement to be declared effective within 120 days after the initial filing with the Securities Exchange Commission. Pursuant to the terms of the agreements, the Company shall reserve a sufficient number of shares of the Company's common stock for the purpose of enabling the Company to issue Shares pursuant to the Agreements. Subject to the terms and conditions of the Equity Line Agreement, including that there is an effective registration statement, the Company, at its sole and exclusive option, may issue and sell to the Investor, and the Investor shall purchase from the Company, the Shares upon the Company's delivery of written notices to the Investor. The aggregate maximum amount of all purchases that the Investor shall be obligated to make under the Equity Line Agreement shall not exceed $10,000,000. Once a written notice is received by the Investor, it shall not be terminated, withdrawn or otherwise revoked by the Company. The amount for each purchase of the Shares as designated by the Company in the applicable draw down notices shall be equal to the lesser of (i) 4.99% of the then-current shares outstanding or (ii) the previous 10-day average trading volume of the draw down shares multiplied by 3. There shall be a minimum draw down investment amount of $25,000 and a maximum draw down investment amount of $1,000,000 unless otherwise agreed upon by the Company and the Investor. The purchase price for the Shares to be paid by the Investor shall be the average of the lowest two (2) VWAPS during 5 consecutive Trading Days following the delivery by the Company of a notice plus a 5% discount. The Company claims an exemption from the registration requirements of the Securities Act of 1933, as amended, for the issuance of the securities referenced herein pursuant to Section 4(a)(2) of the Act and Regulation D promulgated thereunder. 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. Leo Motors reported 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 March 31, 2016, Leo Motors had $6.19 million in total assets, $5.18 million in total liabilities and $1 million in total equity. LIQUIDMETAL TECHNOLOGIES: Stockholders Elect Six Directors ---------------------------------------------------------- Liquidmetal Technologies, Inc., held its annual meeting of stockholders on May 19, 2016, at which the stockholders: (i) elected Thomas Steipp, Yeung Tak Lugee Li, Abdi Mahamedi, Bob-Howard Anderson, Richard Sevcik and Walter Weyler to the Company's board of director; (ii) adopted the Company's Amended and Restated Certificate of Incorporation to increase the number of shares of common stock that the Company is authorized to issue from 700,000,000 shares to 1,100,000,000 shares; (iii) granted advisory approval of the compensation of the Company's named executive officers; and (iv) ratified the appointment of SingerLewak LLP as the Company's independent registered public accounting firm for fiscal year 2016. About Liquidmetal Technologies Based in Rancho Santa Margarita, Cal., Liquidmetal Technologies, Inc., and its subsidiaries are in the business of developing, manufacturing, and marketing products made from amorphous alloys. Liquidmetal Technologies markets and sells Liquidmetal(R) alloy industrial coatings and also manufactures, markets and sells products and components from bulk Liquidmetal alloys that can be incorporated into the finished goods of its customers across a variety of industries. The Company also partners with third- party licensees and distributors to develop and commercialize Liquidmetal alloy products. Liquidmetal reported a net loss and comprehensive loss of $7.31 million on $125,000 of total revenue for the year ended Dec. 31, 2015, compared to a net loss and comprehensive loss of $6.55 million on $603,000 of total revenue for the year ended Dec. 31, 2014. SingerLewak LLP, in Los Angeles, California, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2015, stating that the Company has suffered recurring losses from operations, has negative cash flows from operations and has an accumulated deficit. This raises substantial doubt about the Company's ability to continue as a going concern. MAHI LLC: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------- Debtor: Mahi, LLC dba Carom Inn 2311 Home Depot Drive Denham Springs, LA 70726 Case No.: 16-10601 Chapter 11 Petition Date: May 24, 2016 Court: United States Bankruptcy Court Middle District of Louisiana (Baton Rouge) Judge: Hon. Douglas D. Dodd Debtor's Counsel: Ryan James Richmond, Esq. STEWART ROBBINS & BROWN LLC 620 Florida Street, Suite 100 Baton Rouge, LA 70801 Tel: 225-231-9998 Fax: 225-709-9467 E-mail: rrichmond@stewartrobbins.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Bhagirath Joshi, manager. A list of the Debtor's 20 largest unsecured creditors is available for free at http://bankrupt.com/misc/lamb16-10601.pdf MARINUS VAN PEENEN: Selling Property for $580,000 ------------------------------------------------- Marinus Van Peenen on May 23, 2016, filed with the U.S. Bankruptcy Court for the District of New Jersey a motion to sell her and the non-debtor co-owner's right, title, and interest in the Debtor's real property located at 45 Sylvan Terrace, Wayne, New Jersey, to Azzam Ismaeel and Litsa Ayoub for the sum of $580,000, or to such other party who may make a higher or better offer. The proposed sale will be free and clear of valid liens, mortgages, claims, and encumbrances of any kind or nature, with all such interests to attach to the proceeds of sale. The sale shall be "as is, where is" with payment of the full purchase price to be paid at closing. A hearing on the Debtor's motion is scheduled for June 14, 2016, at 11:00 a.m. Any party desiring to make a higher or better offer may do so at the scheduled hearing. Marinus J. Van Peenen filed a Chapter 11 petition (Bankr. D.N.J. Case No. 15-26283) on Aug. 28, 2015. The Debtor's attorneys: HOOK & FATOVICH, LLC 1044 Route 23 North, Suite 204 Wayne, NJ 07470 Tel: 973-686-3800 Fax: 973-686-3801 Ilissa Churgin Hook, Esq. Milica A. Fatovich, Esq. MARK NEIGHBORS: Court Denies Bid to Stay Ch. 7 Conversion Order --------------------------------------------------------------- Judge Julie A. Robinson of the United States District Court for the District of Kansas denied the Debtors' Motion for Stay of Memorandum Opinion and Judgment Converting Case to Chapter 7 Pending Appeal in the bankruptcy case In re MARK STEPHEN NEIGHBORS and SHELLY KAY NEIGHBORS, Debtors, Case No. 16-2003-JAR No, Bankruptcy No. 11-21003-DLS. United States Bankruptcy Judge Dale L. Somers entered an order converting Debtors Mark and Shelly Neighbors' Chapter 11 bankruptcy case to a Chapter 7 liquidation proceeding. Debtors appealed the conversion of their bankruptcy proceedings which the bankruptcy court denied. Debtors have now filed a Motion for Stay of Memorandum Opinion and Judgment Converting Case to Chapter 7 Pending Appeal in this Court. The Court concluded that Debtors have failed to show that the bankruptcy court abused its discretion in denying their request for a stay of the conversion order pending appeal. Moreover, even if the Court were considering the request for stay de novo, it concluded that Debtors have failed to meet their heavy burden of showing that such relief is appropriate in this case. A full-text copy of the Memorandum and Order dated April 29, 2016 is available at https://is.gd/5UyyA3 from Leagle.com. Mark Stephen Neighbors, Appellant, is represented by Camron L. Hoorfar, Esq. -- CHoorfar@Hoorfarlaw.com -- Law Office of Camron Hoorfar, PC. Shelly Kay Neighbors, Appellant, is represented by Camron L. Hoorfar, Law Office of Camron Hoorfar, PC. Patricia E. Hamilton, Trustee, Pro se. Patricia E. Hamilton, Trustee, is represented by Patricia E. Hamilton, Esq. -- phamilton@stevensbrand.com -- Stevens & Brand, LLP. U.S. Trustee's Office, Trustee, Pro Se. MATCH GROUP: S&P Assigns 'BB-' Rating on Proposed $400MM Notes -------------------------------------------------------------- S&P Global Ratings assigned its 'BB-' issue-level rating and '5' recovery rating to The Match Group Inc.'s proposed $400 million senior unsecured notes due 2024. The '5' recovery rating indicates S&P's expectation for modest recovery (10%-30%; lower half of the range) of principal in the event of a payment default. Concurrently, S&P raised its issue-level rating on the company's $800 million senior secured term B bank loan due 2022 to 'BBB-' from 'BB+' and revised the recovery rating to '1' from '2'. The '1' recovery rating indicates S&P's expectation for very high recovery (90%-100%) of principal in the event of a payment default. S&P's 'BB' corporate credit rating and stable rating outlook on Match are unchanged. As of March 31, 2016, the company's adjusted debt leverage was 3.7x, which is below S&P's threshold of 4x for the current rating. S&P believes that Match's adjusted debt leverage could decline to the low-3x area by the end of 2016 due to a combination of a full-year effect of Plentyoffish Media Inc. ownership and modest debt repayment. RECOVERY ANALYSIS Key analytical factors: -- S&P's simulated default scenario contemplates a default in 2020 due to underperforming acquisitions; a decline in the company's core brand, Match; or the emergence of a new disruptive online dating service. S&P believes that if the company were to default its debtholders would achieve greater recovery through reorganization rather than liquidation. In a hypothetical reorganization, S&P believes the company would sell or wind down nonstrategic or unprofitable brands. -- S&P's recovery rating on the senior unsecured notes reflects recoveries from unpledged foreign assets. Foreign subsidiaries account for about 30% of S&P's simulated emergence valuation. Simulated default assumptions -- Simulated year of default: 2020 -- EBITDA at emergence: $179 million -- EBITDA multiple: 6x Simplified waterfall -- Net enterprise value (after 5% administrative costs): $1.02 billion -- Senior secured debt: about $910 million -- Recovery expectation: 90%-100% -- Senior unsecured notes: about $884 million -- Recovery expectation: 10%-30% (lower half of the range) RATINGS LIST Match Group Inc. (The) Corporate Credit Rating BB/Stable/-- New Ratings Match Group Inc. (The) Senior Unsecured $400 million notes due 2024 BB- Recovery Rating 5L Upgraded; Recovery Rating Revised Match Group Inc. (The) To From Senior Secured $800 mil term B bank ln due 2022 BBB- BB+ Recovery Rating 1 2L MCCLATCHY CO: Shareholders Elect 10 Directors --------------------------------------------- The McClatchy Company shareholders elected 10 directors to one-year terms, ratified the appointment of Deloitte & Touche LLP as the company's independent registered public accounting firm for 2016, and approved the adoption of an Amended and Restated Certification of Incorporation allowing for a reverse stock split of the company's outstanding Class A and B Common Stock. Shareholders elected Fred Ruiz, who served as a Class B director for 22 years, as a new Class A director and also re-elected Elizabeth Ballantine and Clyde W. Ostler as Class A directors. Leroy Barnes, Molly Maloney Evangelisti, Craig I. Forman, Brown McClatchy Maloney, Kevin S. McClatchy, William McClatchy and Patrick J. Talamantes were re-elected as Class B directors. The company also said farewell to director Kathleen Foley Feldstein, who retired today from the company's board after nine years of service on McClatchy's board. Chairman Kevin S. McClatchy noted that Feldstein had served on the Knight Ridder board from 1998 until the acquisition on June 27, 2006, at which time she began serving on the board of McClatchy, for an accumulated 18 years of service. "Kate has contributed a great deal to the board and her expertise and spirit will be missed, but we wish her all the best in her retirement," he said. In a separate action, the board of directors of McClatchy approved a 1 for 10 reverse stock split that is expected to be effective as of the beginning of trading on June 7, 2016. Proforma for this split and based on shares outstanding and McClatchy's closing price as of today, McClatchy's post-split share price would be $11.40, and post-split outstanding Class A shares would total approximately 5.3 million and Class B shares would total approximately 2.4 million. The company's equity market capitalization of $88.6 million would be unchanged. The company also announced that its board of directors approved an increase to its share repurchase program that now authorizes the Company to purchase up to $20 million of the Company's Class A common stock through Dec. 31, 2016. This authorization replaces its previous repurchase program of $15 million, announced on Aug. 19, 2015, and covered the same time period. Approximately $1.9 million remained available for repurchases under the previous program and McClatchy now has approximately $6.9 million available for share repurchases through Dec. 31, 2016. Through May 17, 2016, McClatchy had repurchased approximately 11 million Class A shares at an average price of $1.20 per share. Pat Talamantes, McClatchy's president and CEO, provided an update on McClatchy's business through the first quarter of 2016 and strategies to continue its successful digital transformation. The full text of Talamantes' speech as well as a video of his presentation is available at http://www.mcclatchy.com/ About The McClatchy Company Sacramento, Cal.-based The McClatchy Company (NYSE: MNI) -- http://www.mcclatchy.com/-- is a media company that provides both print and digital news and advertising services. Its operations include 30 daily newspapers, community newspapers, websites, mobile news and advertising, niche publications, direct marketing and direct mail services. Its owned newspapers include, among others, the (Fort Worth) Star-Telegram, The Sacramento Bee, The Kansas City Star, the Miami Herald, The Charlotte Observer, and The (Raleigh) News & Observer. The Company holds interest in digital assets which include CareerBuilder, LLC, Classified Ventures, LLC, HomeFinder, LLC, and Wanderful Media. McClatchy reported a net loss of $300 million on $1.05 billion of net revenues for the year ended Dec. 27, 2015, compared to net income of $374 million on $1.14 billion of net revenues for the year ended Dec. 28, 2014. As of March 27, 2016, the Company had $1.88 billion in total assets, $1.70 billion in total liabilities and $179 million in total stockholders' equity. * * * McClatchy carries a 'Caa1' corporate family rating from Moody's Investors Service. In May 2011, Moody's changed the rating outlook from stable to positive following the company's announcement that it closed on the sale of land in Miami for $236 million. The outlook change reflects Moody's expectation that McClatchy will utilize the net proceeds to reduce debt, including its underfunded pension position, which will reduce leverage by approximately half a turn and lower required contributions to the pension plan over the next few years. As reported by the TCR on April 2, 2014, Standard & Poor's Ratings Services affirmed all ratings on U.S. newspaper company The McClatchy Co., including the 'B-' corporate credit rating, and revised the rating outlook to stable from positive. The outlook revision to stable reflects S&P's expectation that the timeframe for a potential upgrade lies beyond the next 12 months, and could also depend on the company realizing value from its digital minority interests. MEDIACOM COMMUNICATIONS: S&P Affirms B+ Rating on Sr. Unsec. Notes ------------------------------------------------------------------ S&P Global Ratings raised its issue-level rating on Mediacom Park, N.Y.-based cable-TV operator Mediacom Communications Corp.'s secured debt to 'BBB-' from 'BB+' after the company's subsidiaries, Mediacom LLC and Mediacom Broadband Group, repaid the entire balance on its term loan E due 2017 and term loan I due 2017, respectively. Also, S&P revised the recovery rating on the company's secured debt to '1' from '2'. The '1' recovery rating indicates S&P's expectation for very high recovery (90%-100%) of principal in the event of a payment default. In addition, S&P is affirming the 'B+' issue-level rating on the company's unsecured debt. The recovery rating on the unsecured debt remains '6', indicating S&P's expectation for negligible recovery (0% to 10%) for the unsecured noteholders. Mediacom LLC funded the entire $82.9 million repayment of its term loan E under its revolving credit facility, while Mediacom Broadband funded the entire $245.6 million repayment of its term loan I with $170.6 million of borrowings under its revolving credit facility and a $75 million cash contribution from the parent, Mediacom Communications Corp. Because S&P's recovery analysis assumes an 85% drawn revolver at the point of default, incremental borrowings to help fund the paydown of the company's term loan E and term loan I generate a net reduction in secured debt as part of S&P's recovery analysis, which modestly increases recovery prospects for secured lenders. S&P's 'BB' corporate credit rating and stable outlook on Mediacom Communications Corp. are unaffected, because S&P expects net debt leverage to continue to be about 4x by fiscal year-end 2016. RATINGS LIST Mediacom Communications Corp. Mediacom Broadband Group Mediacom Broadband LLC Corporate Credit Rating BB/Stable/-- Upgraded; Recovery Rating Revised Mediacom Broadband Group MCC Georgia LLC MCC Illinois LLC MCC Iowa LLC MCC Missouri LLC Mediacom Arizona LLC Mediacom California LLC Mediacom Delaware LLC Mediacom Illinois LLC Mediacom Indiana LLC Mediacom Iowa LLC Mediacom Minnesota LLC Mediacom Southeast LLC Mediacom Wisconsin LLC Zylstra Communications Corp. Mediacom LLC Group To From Senior Secured BBB- BB+ Recovery Rating 1 2H Rating Affirmed; Recovery Rating Unchanged Mediacom Broadband Corp. Mediacom Broadband LLC Mediacom Capital Corp. Mediacom LLC Senior Unsecured B+ Recovery Rating 6 MELVYN WEINTRAUB: Trustee Has Approval to Sell Stocks ----------------------------------------------------- Albert Togut, not individually but solely in his capacity as Chapter 11 trustee of the estates of Melvyn D. Weintraub and Linda F. Weintraub, on May 23, 2016, won approval from the United States Bankruptcy Court for the Southern District of New York to sell the Debtors' publicly traded stocks. The Trustee has learned that the Debtors own $55,000 worth of shares of publicly traded shares of AT&T, Comcast and CenturyLink: (i) 81 common shares of CenturyLink (worth approximately $2,550 based on current trading prices); (ii) 1,184 common shares of AT&T Inc. (worth approximately $46,350 based on current trading prices); and (iii) 130 class A common shares of Comcast Corporation (worth approximately $7,800 based on current trading prices). The Stock is not subject to any known liens or exemptions, and the Trustee has determined that the sale of the Stock through a registered agent is appropriate. According to Judge James L. Garrity, Jr.'s order, after deduction of the transaction fee, Computershare is authorized and directed to deliver the net sales proceeds of the Stock to the Trustee About Melvyn D. Weintraub Melvyn D. Weintraub and Linda F. Weintraub filed a joint voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. S.D.N.Y. Case No. 11-15499) on Nov. 29, 2011. No committee of unsecured creditors has been appointed in this case. On Dec. 9, 2014, the Court entered an Order Directing the appointment of a Chapter 11 trustee. The U.S. Trustee appointed Albert Togut as Chapter 11 trustee. The Trustee and his firm can be reached at: Albert Togut, Esq. Neil Berger, Esq. Kyle J. Ortiz, Esq. TOGUT, SEGAL & SEGAL LLP One Penn Plaza, Suite 3335 New York, NY 10119 Tel: (212) 594-5000 MICHAEL JOSEPH KILROY: June 21 Hearing on Epps & Coulson's Fees --------------------------------------------------------------- Judge Robert Kwan of the United States Bankruptcy Court for the Central District of California, Los Angeles Division, in the bankruptcy case is In re: MICHAEL JOSEPH KILROY, Chapter 11, Debtor, Case No. 2:15-bk-15708-RK, ordered that the First and Final Fee Application of Epps & Coulson, LLP, Attorneys for Robert C. Warren, Chapter 11 Custodian, is scheduled to come on for hearing before the undersigned United States Bankruptcy Judge on June 21, 2016 at 2:30 p.m., so that it may be heard with the the fee applications filed in the related Chapter 11 case of Domum Locis LLC (2:14-bk-23301-RK), if not later, in light of the current status of the case and other factors. No appearances are required at the April 27, 2016 hearing. The final fee application has been objected to by several parties, including Debtor and Creditor Lloyds Bank, which indicates that the application should be considered a contested matter under Federal Rule of Bankruptcy Procedure 9014. The court is not sure that it is appropriate for it to consider the fee application on a final basis and payment of the claimed fees as an administrative expense claim under 11 U.S.C. Section 503 on a final basis since this Chapter 11 case is nowhere close to resolution through plan confirmation proceedings, the other administrative expense claims with the same priority have not been resolved and the ability of the bankruptcy estate at this time to pay the claimed fees or any other administrative expense claims, including the claimed fees of counsel for Debtor, is doubtful at this time. A full-text of the Order dated April 25, 2016 is available at https://is.gd/kIGcwy from Leagle.com. Michael Joseph Kilroy, Debtor, is represented by John-Patrick M Fritz, Esq. -- jpf@lnbyb.com -- Levene Neale Bender Yoo et al, David L. Neale, Esq. -- dln@lnbyb.com -- Levene Neale Bender Yoo & Brill LLP. United States Trustee (LA), U.S. Trustee, is represented by Alvin Mar. MPH ACQUISITION: Moody's Assigns B2 CFR; Outlook Stable ------------------------------------------------------- Moody's Investors Service assigns its B2 Corporate Family Rating and B2-PD Probability of Default Rating to MPH Acquisition Holdings LLC, the indirect parent of MultiPlan, Inc. The ratings reflect Multiplan's announced acquisition by Hellman & Friedman LLC from current owners Starr Investment Holdings and Partners Group. At the same time, Moody's assigned B1 (LGD 3) ratings to the company's proposed first lien senior secured credit facilities, including a $3.270 billion senior secured first lien term loan and a $100 million senior secured first lien revolving credit facility. Moody's also assigned a Caa1 (LGD 5) rating to the company's proposed $1.3 billion senior unsecured note offering. The proceeds from the senior secured term loan, senior unsecured notes, and contribution of common equity, will fund the acquisition, refinance existing debt, and pay transaction fees and expenses. Following close of the Hellman acquisition Moody's will withdraw the ratings on the company's existing first lien senior secured credit facilities, including a $75 million senior secured first lien revolving credit facility and a $2.2 billion senior secured first lien term loan. Moody's will also withdraw ratings on the company's existing $1.0 billion senior unsecured notes. The rating outlook is stable. Following is a summary of Moody's rating actions. Ratings confirmed: MPH Acquisition Holdings LLC (Old) Corporate Family Rating, B2 Probability of Default Rating, B2-PD $75 million senior secured first lien revolving credit facility, rated B1 (LGD 3) $2.2 billion senior secured first lien term loan, rated B1 (LGD 3) $1.0 billion senior unsecured notes, rated Caa1 (LGD 5) Ratings to be withdrawn following close of the transaction: $75 million senior secured first lien revolving credit facility, rated B1 (LGD 3) $2.2 billion senior secured first lien term loan, rated B1 (LGD 3) $1.0 billion senior unsecured notes, rated Caa1 (LGD 5) The rating outlook is stable Ratings assigned: MPH Acquisition Holdings LLC Corporate Family Rating, B2 Probability of Default Rating, B2-PD $100 million senior secured first lien revolving credit facility, rated B1 (LGD 3) $3.270 billion senior secured first lien term loan, rated B1 (LGD 3) $1.3 billion senior unsecured notes, rated Caa1 (LGD 5) The rating outlook is stable RATINGS RATIONALE The B2 CFR reflects MultiPlan's high financial leverage that Moody's estimates at about 7.6x pro-forma for the pending transaction. Moody's also recognizes the company's aggressive stance towards debt financed acquisitions and dividends as demonstrated by this recent transaction, as well as declining revenues within the company's primary network business. The ratings also reflect the company's modest scale based on revenues, and high concentration among its largest healthcare payer customers. The ratings are supported by the company's leading scale and market position in the Preferred Provider Organization ("PPO") industry, solid operating margins, and stable free cash flow. Moody's also acknowledges the PPO industry's high barriers to entry, solid organic growth within MultiPlan's Analytics-Based Solutions business, and the company's good historical track record of debt reduction. Despite very high financial leverage, Moody's expects the company to generate positive free cash flow and maintain a good liquidity profile. The stable rating outlook reflects Moody's expectation that financial leverage and cash flow to debt metrics will steadily improve due to debt repayment and continued earnings growth over the next 12-18 months, and that the company will not engage in any material debt-financed acquisitions or shareholder initiatives. The ratings could be downgraded if the company is unable to reduce financial leverage to the mid-6x range by the end of 2017, with further progress to below 6.0 times, or if the company engages in any material debt financed acquisitions or shareholder initiatives. In addition, the ratings could be lowered if the company's availability under external liquidity sources deteriorates. An upgrade is unlikely over the near-term due to the company's very high financial leverage, small size, and high customer concentration. However, the ratings could be upgraded if adjusted financial leverage is sustained to below 4.5 times, and Moody's gain confidence that the company's financial policies are consistent with maintaining leverage below this level. The principal methodology used in these ratings was Business and Consumer Service Industry published in December 2014. MPH Acquisition Holdings LLC is a holding company whose principal operating subsidiary is MultiPlan, Inc. Based in New York City, MultiPlan provides health care cost management services via contract arrangements between health insurance companies, national and regional health plans, third party administrators, self-insured employers, Taft-Hartley sponsored plans and federal and state government agencies. Multiplan pays a negotiated rate to its network providers after it receives payment from its payor customers, and recognizes the difference as revenue. Following close of the acquisition, Multiplan will be privately owned by Hellman & Friedman. Multiplan generates over $900 million in annual revenues. MT. GOX: Creditors Seek Trillions in Bankrupt Company ----------------------------------------------------- Nathaniel Popper, writing for The New York Times' DealBook, reported that creditors claim they lost $2,411,412,137,427 when Mt. Gox, the Tokyo-based virtual currency exchange, collapsed into bankruptcy in 2014, after huge, unexplained losses of the volatile digital currency Bitcoin. According to the report, as with most of the people who lost money with Bernard L. Madoff, the investment manager who was convicted of running a Ponzi scheme, most of those who put their Bitcoin in Mt. Gox will be disappointed: The Japanese trustee overseeing the case said on May 25 that only $91 million in assets has been tracked down to distribute to claimants -- a small portion of the more than $500 million in assets that Mt. Gox claimed it had in the weeks before it went bankrupt in February 2014, and a tiny portion of the amount that claimants have requested. The giant gaps between those numbers are an indication, if nothing else, of the sheer number of dishonest people who have been drawn to the fiasco around Mt. Gox and Bitcoin, the report said. They are also the latest reminders of the topsy-turvy nature of the digital-currency realm, the report added. The amount that claimants have requested from the Mt. Gox bankruptcy estate is absurd on its face, given that all the Bitcoins in the world today are worth about $7 billion, or 0.3 percent of the $2.4 trillion being claimed, the report noted. Most of that huge number is an outsize claim by one individual -- but even after that is taken out, the rest of the claimants said they lost some $27 billion, or 54 times what the exchange claimed it held before it went under, the report said. The trustee said at a meeting with creditors that $414 million of the claims appeared to be legitimate and have been approved, the report related. Each of those claimants will get some portion of the $91 million, the report further related. About Mt. Gox Bitcoin exchange MtGox Co., Ltd., filed a petition under Chapter 15 of the U.S. Bankruptcy Code on March 9, 2014, days after the company sought bankruptcy protection in Japan. The bankruptcy in Japan came after the bitcoin exchange lost 850,000 bitcoins valued at about $475 million "disappeared." The Japanese bitcoin exchange halted trading in February 2014. It filed for bankruptcy protection in the U.S. to prevent customers from targeting the cash it holds in U.S. bank accounts. The Chapter 15 case is In re MtGox Co., Ltd., Case No. 14-31229 (Bankr. N.D. Tex.). The Chapter 15 Petitioner is Robert Marie Mark Karpeles, the company's chief executive officer. Mr. Karpeles is represented by John E. Mitchell, Esq., and David William Parham, Esq., at Baker & Mcckenzie LLP, in Dallas, Texas. The bankruptcy trustee and foreign representative of MtGox Co. Ltd. with respect to the Japan Bankruptcy Proceedings: MtGox Co., Ltd. Office of Bankruptcy Trustee Kojimachi 3 chome building #202 Kojimachi 3-4-1 Chiyoda-ku, Tokyo Tel: +81-3-4588-3922 Attn: Nobuaki Kobayashi The Ontario Superior Court of Justice (Commercial List) on Oct. 3, 2014, ordered, pursuant to Section 272 of the Bankruptcy and Insolvency Act, that the bankruptcy proceedings commenced with respect to MtGox Co., Ltd. -- aka Mt. Gox KK and dba MtGox -- be recognized as a "foreign main proceeding." The Canadian legal counsel to the bankruptcy trustee and foreign representative of MtGox Co., Ltd, are Jeffrey Carhart and Margaret Sims, at Miller Thomson LLP. The company said it has estimated assets of $10 million to $50 million and debts of $50 million to $100 million. NEW YORK LIGHT: Exclusive Plan Filing Period Extended to May 27 --------------------------------------------------------------- The Hon. Robert E. Littlefield, Jr., of the U.S. Bankruptcy Court for the Northern District of New York has extended, at the behest of New York Light Energy, LLC, et al., the Debtors' exclusive period to file a Chapter 11 plan through and including May 27, 2016, and the exclusive period to solicit acceptances of the plan through and including July 26, 2016. As reported by the Troubled Company Reporter on May 5, 2016, the Court entered a bridge order extending the Exclusive Filing Period through and including the hearing date, May 18, 2016. The TCR reported on May 3, 2016, that debtors New York Light Energy, LLC, Light Energy Partners Group, LP, Light Energy Administrative Services, LLC, Light Energy Installers, LLC, U.S. Light Energy, LLC, and Light Energy Management II, LLC, asked the Court for the extensions, saying that they have made significant progress in administering theses Chapter 11 cases. However, because of the complexity of the Debtors' businesses and debt structure and the resulting complexity of the restructuring process, the Debtors need additional time to complete the restructuring process and determine the most beneficial bankruptcy exit outcome for their estates and creditors. About New York Light Energy Founded in 2009 and based in Latham, New York, New York Light Energy, LLC, designs and installs medium-scale solar arrays in New York State and Massachusetts. The Company has installed solar arrays on more than 180 industrial, commercial, municipal, and residential sites, with a total of over 15 megawatts of capacity to date. NYLE and its affiliates commenced Chapter 11 bankruptcy cases (Bankr. N.D.N.Y. Lead Case No. 15-11121) in Albany, New York, on May 27, 2015. Judge Robert E. Littlefield Jr. is assigned to the cases. The Debtors tapped Bond, Schoeneck & King, PLLC, as counsel. The Debtors hired Blackbird Asset Services LLC as liquidation agent in connection with the sale of their excess inventory. The U.S. Trustee for Region 2, appointed three creditors to serve in an Official Committee of Unsecured Creditors in the Chapter 11 cases of New York Light Energy, LLC, et al. The Committee retains Hodgson Russ LLP as its attorneys and Emerald Capital Advisors Corp. as financial advisor. NUO THERAPEUTICS: Deerfield Partner Named as Director ----------------------------------------------------- Deerfield Mgmt, L.P. and various related entities disclosed in a regulatory filing with the Securities and Exchange Commission that as of May 12, 2016, they beneficially own zero shares of Common Stock, or 0.00% of the outstanding Common Stock of Nuo Therapeutics, Inc. As of May 5, 2016, Deerfield et al. ceased to be the beneficial owner of more than 5% of Nuo's Common Stock. On May 5, 2016, Nuo's Modified First Amended Plan of Reorganization under Chapter 11 of the Bankruptcy Code became effective. In accordance with the Plan, among other things, all of the Warrants and the Notes held by Deerfield et al. were cancelled, and, as such, Deerfield et al. no longer beneficially own the Common Stock issuable upon exercise of the Warrants or conversion of the Notes. Pursuant to the Plan, on the Effective Date, Nuo issued to the Funds an aggregate of 29,038 shares of Nuo's Series A Preferred Stock and assigned to an affiliate of the Funds all of the Company's rights, title and interest in the existing Angel CPRP system and product lines license agreement with Arthrex, Inc., all associated intellectual property owned by Nuo and licensed thereunder and rights to collect royalty payments. The Series A Preferred Stock, among other things, ranks senior to the Common Stock with respect to rights upon a liquidation or dissolution of the Company, requires Nuo to obtain the consent of the holders of at least two thirds of the Series A Preferred Stock in connection with certain transactions entitles the holders of Series A Preferred Stock to appoint one member of Nuo's board of directors and requires that the Series A Director serve on a standing committee of the board of directors established to exercise powers of the board of directors in respect of decisions or actions relating to the backstop capital call commitments entered into by Nuo in connection with the Plan. Lawrence Atinsky, a partner in Deerfield Management, has been appointed to serve as the Series A Director. Deerfield may be reached at: David Clark Deerfield Mgmt, L.P. 780 Third Avenue, 37th Floor New York, New York 10017 Tel: (212) 551-1600 - and - Elliot Press, Esq. Katten Muchin Rosenman LLP 575 Madison Avenue New York, NY 10022 Tel: (212) 940-8800 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: Plan Declared Effective; 10-Q Report Delayed -------------------------------------------------------------- Nuo Therapeutics, Inc., has failed to deliver to the Securities and Exchange Commission its quarterly report on Form 10-Q. The Company cited its bankruptcy proceedings for the delay. The Company continued to operate its business as a "debtor-in-possession" under the jurisdiction of the Bankruptcy Court and in accordance with the applicable provisions of Chapter 11 and orders of the Bankruptcy Court. On April 25, 2016, the Bankruptcy Court entered an Order Granting Final Approval of Disclosure Statement and Confirming Debtor's Plan of Reorganization, which confirmed the Company's Modified First Amended Plan of Reorganization under Chapter 11 of the Bankruptcy Code. The Plan became effective on May 5, 2016. During the pendency of the Chapter 11 Case and following the date of the Company's emergence from bankruptcy on the Effective Date pursuant to the Plan, in addition to their regular financial reporting duties, the Company's management team and other finance and accounting personnel were required to devote significant time and attention to matters relating to and on the preparation of certain materials required in connection with the Chapter 11 Case and the Plan, including monthly reports which it filed under cover of Current Reports on Form 8-K. As a result, the Form 10-Q for the period ended March 31, 2016, for the Company could not be filed within the prescribed period because of the limitations on staffing, the Company's limited financial resources and the significant additional burdens that the Chapter 11 Case imposed on the Company's available human and financial resources. Such inability could not have been eliminated by the Company without unreasonable effort or expense. Following its recent emergence from bankruptcy on the Effective Date, the Company has commenced the process of preparing those periodic reports for which it was delinquent during the pendency of the Chapter 11 Case, and intends to file such delinquent periodic reports as promptly as possible, and thereafter regain compliance with its timely periodic reporting obligations under the Securities Exchange Act of 1934. According to the Company, Scenario A contemplated by the Plan became effective on May 5. -- Assignment and Assumption Agreement; Transition Services Agreement Pursuant to the Plan, on May 5, 2016 the Company entered into an Assignment and Assumption Agreement with Deerfield SS, LLC, the designee of Deerfield Private Design Fund II, L.P., Deerfield Private Design International II, L.P. and Deerfield Special Situations Fund, L.P., to assign to the Assignee the Company's rights, title and interest in and to its existing license agreement with Arthrex, Inc., and to transfer and assign to the Assignee associated intellectual property and royalty and payment rights owned by the Company and licensed thereunder. Pursuant to the Plan, on May 5, 2016, the Company and the Assignee entered into a Transition Services Agreement pursuant to which the Company agreed to continue to service the Arthrex Agreement for the benefit of the Assignee. -- Registration Rights Agreement On the Effective Date, the Company entered into a registration rights agreement with certain investors who purchased shares of new common stock of the Company, par value $0.0001 per share on the Effective Date. The Registration Rights Agreement provides certain resale registration rights to the Investors. Pursuant to the Registration Rights Agreement, the Company has agreed to use its best efforts to prepare and file with the U.S. Securities and Exchange Commission a "Shelf" Registration Statement covering the resale of all shares of New Common Stock issued to the Investors on the Effective Date. -- Common Stock On the Effective Date, the Company issued 7,500,000 shares of New Common Stock to the Investors in accordance with the Plan. On the Effective Date, the Company also issued warrants to purchase 6,180,000 shares of New Common Stock to certain of the Investors pursuant to a Form of Warrant. The issuances of New Common Stock and the Warrants to the Investors were issued pursuant to an exemption from the registration requirements of the Securities Act pursuant to Section 4(2) of the Securities Act and Rule 506 promulgated thereunder. A significant majority of the Investors executed backstop irrevocable capital call commitments to purchase up to 12,800,000 additional shares of New Common Stock for an aggregate purchase price of up to $3,000,000. The Company has agreed to issue shares of New Common Stock to record holders of previously issued shares of canceled common stock as of March 28, 2016 who execute and timely deliver a release document no later than 60 days after the Effective Date. Any such holder who does not execute and timely deliver a release document shall not receive its pro rata share of such New Common Stock and such shares shall be cancelled by the Company. In accordance with the Plan, such shares of New Common Stock will be issued pursuant to an exemption from the registration requirements of the Securities Act under Section 1145 of the Bankruptcy Code. -- Series A Preferred Stock On the Effective Date the Company filed a Certificate of Designations of Series A Preferred Stock with the Delaware Secretary of State, designating 29,028 shares of the Company's undesignated preferred stock, par value $0.0001 per share, as Series A Preferred Stock. On the Effective Date the Company issued 29,028 shares of Preferred Stock to the Lenders in accordance with the Plan pursuant to an exemption from the registration requirements of the Securities Act under Section 1145 of the Bankruptcy Code. The Lenders did not receive any shares of New Common Stock or other equity interests in the Company. The Series A Preferred Stock has no stated maturity date, is not convertible or redeemable and carries a liquidation preference of $29,038,000, which is required to be paid in preference to all shares of New Common Stock (and other capital stock that is not issued on parity or senior to the Series A Preferred Stock) upon a liquidation or change in control transaction. For so long as Series A Preferred Stock is outstanding, the holders of Series A Preferred Stock have the right to nominate and elect one member of the board of directors of the Company. The holders of Series A Preferred Stock have voting rights, voting with the New Common Stock as a single class, representing 1% of the voting rights of the Company and the Holders of Series A Preferred Stock have the right to approve certain transactions and incurrences of debt. The Certificate of Designations limits the Company's ability to pay dividends on or purchase shares of its capital stock. -- Facility Agreement On the Effective Date, except as otherwise specifically provided for in the Plan, the obligations of the Company under the Facility Agreement dated March 31, 2014 between the Company and the Lenders and an affiliate thereof were cancelled and the Company ceased to have any obligations thereunder. -- Cancellation of Old Securities Pursuant to the Plan, on the Effective Date (i) all outstanding equity interests (including warrants and options) of the Company, including but not limited to all outstanding shares of the Company's common stock that were issued and outstanding prior to the Effective Date were cancelled on the Effective Date, (ii) the Company's certificate of incorporation in effect immediately prior to the Effective Date was amended and restated in its entirety, (iii) the Company's by-laws in effect immediately prior to the Effective Date were amended and restated in their entirety as described in the Company's Form 8-A filed on May 10, 2016, and (iv) the Company issued shares of New Common Stock, Warrants and Series A Preferred Stock. -- Directors and Officers On the Effective Date, pursuant to the Plan, the size of the Board of Directors was fixed at five members, Stephen N. Keith reigned from the Board of Directors and Scott Pittman and Lawrence Atinsky were appointed to the Board of Directors. Joseph Del Guercio, David E. Jorden and C. Eric Winzer remained on the Board of Directors. Mr. Atinsky was appointed to the Board of Directors by the holders of the Series A Preferred Stock issued on the Effective Date. -- Second Amended and Restated Certificate of Incorporation Pursuant to the Plan, on the Effective Date, the Company adopted a Second Amended and Restated Certificate of Incorporation and amended and restated its By-laws. 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. OLIN VIRTUAL: Hires Langley as Counsel -------------------------------------- Olin Virtual Academy, seeks authority from the U.S. Bankruptcy Court for the Central District of California to employ the Law of Offices of Langley & Chang as counsel to the Debtor. Olin Virtual requires Langley to: -- represent Debtor in the bankruptcy case; -- examine claims of creditors in order to determine their validity; -- give advice and counsel to Debtor in connection with legal issues, including the use, sale or lease of property of the estate, adequate assurance of utilities, use of cash collateral and post-petition financing, requests for security interest, relief from the automatic stay, special treatment, payment of prepetition obligations, etc.; -- negotiate with creditors holding secured and unsecured claims; -- prepare and present a plan of reorganization and disclosure statement; -- prosecute claims of estate, objecting to claims as may be appropriate and, in general, acting as counsel on behalf of the Debtor in any and all bankruptcy law and related matters which may arise in the course of the bankruptcy case. -- appear and prosecute or defend suits and proceedings, if any, when they arise and to take all necessary and proper steps in other matters and things involving bankruptcy law or connected with the affairs of the bankruptcy estate if and when a necessity exists. Langley will be paid at these hourly rates: Steven P. Chang $425 Christopher Langley $425 Senior Associates $375 Junior Associates $300 Paralegal/Law Clerks $135 Langley received $40,000, including filing fee, in funds prior to the petition date in connection with its representation of the Debtors. Of that sum, $40,000 constituted payment for fees for services rendered and costs incurred prior to the commencement of the Debtor's chapter 11 case. Total fees for services rendered and costs incurred were $40,185 leaving a prepetition balance of fees for services rendered in the amount of $1,185. Langley has waved the prepetition balance of fees for services rendered in the amount of $1,185. As of the commencement of the case, Langley unused retainer balance remaining was $0. Langley will also be reimbursed for reasonable out-of-pocket expenses incurred. Steven P. Chang, principal member of the Law Offices of Langley & Chang, 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. Langley can be reached at: Steven P. Chang, Esq. LAW OF OFFICES OF LANGLEY & CHANG 13200 Crossroads Parkway North, Suite 165 City of Industry, CA 91746 Tel: (626) 281-1232 Fax: (626) 281-2919 About Olin Virtual Olin Virtual Academy filed for Chapter 11 protection (Bankr. C.D. Cal. Case No. 16-11187) on April 20, 2016. The petition was signed by Ramon Miramontes, president. The Hon Martin R. Barash presides over the case. The Debtor estimated assets of $1 million to $10 million and estimated liabilities of $100,000 to $500,000. A list of the Debtor's 20 largest unsecured creditors is available for free at http://bankrupt.com/misc/cacb16-11187.pdf OM HOSPITALITY: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: Om Hospitality, LLC dba Highland Inn 2605 S. Range Ave. Denham Springs, LA 70726 Case No.: 16-10602 Chapter 11 Petition Date: May 24, 2016 Court: United States Bankruptcy Court Middle District of Louisiana (Baton Rouge) Judge: Hon. Douglas D. Dodd Debtor's Counsel: Ryan James Richmond, Esq. STEWART ROBBINS & BROWN, LLC 620 Florida Street, Suite 100 Baton Rouge, LA 70801 Tel: 225-231-9998 Fax: 225-709-9467 E-mail: rrichmond@stewartrobbins.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Bhagirath Joshi, manager. A list of the Debtor's 20 largest unsecured creditors is available for free at http://bankrupt.com/misc/lamb16-10602.pdf OMINTO INC: Incurs $3 Million Net Loss in Second Quarter -------------------------------------------------------- Ominto, Inc. filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $3 million on $3.99 million of revenue for the three months ended March 31, 2016, compared to a net loss of $2 million on $3.83 million of revenue for the same period in 2015. For the six months ended March 31, 2016, the Company reported a net loss of $5.01 million on $9.42 million of revenue compared to a net loss of $3.14 million on $8.57 million of revenue for the six months ended March 31, 2015. As of March 31, 2016, the Company had $9 million in total assets, $16.8 million in total liabilities and a total stockholders' deficit of $7.83 million. A full-text copy of the Form 10-Q is available for free at: https://is.gd/bZx7jo About Ominto Ominto, Inc. was incorporated under the laws of the State of Nevada on June 4, 1999, as Clamshell Enterprises, Inc., which name was changed to MediaNet Group Technologies, Inc. in May 2003, then to DubLi, Inc. on Sept. 25, 2012, and finally to Ominto, Inc. as of July 1, 2015. The DubLi Network was merged into the Company, as its primary business in October 2009. Ominto reported a net loss of $11.7 million for the year ended Sept. 30, 2015, compared to a net loss of $1.34 million for the year ended Sept. 30, 2014. Mayer Hoffman McCann P.C., in Boca Raton, Florida, issued a "going concern" qualification on the consolidated financial statements for the year ended Sept. 30, 2015, noting that the Company has suffered recurring losses from operations and has a net capital deficiency that raise substantial doubt about its ability to continue as a going concern. PACIFIC SUNWEAR: Key Employee Incentive Plan Approved ----------------------------------------------------- By order entered on May 12, 2016, the United States Bankruptcy Court for the District of Delaware approved the Key Employee Incentive Plan of Pacific Sunwear of California, Inc. and its subsidiaries Miraloma Borrower Corporation and Pacific Sunwear Stores Corp. The KEIP is designed to incentivize certain officers who hold critical operational leadership or corporate management positions within the Company to preserve and maximize the going concern value of the Company's business, so as to help maximize value for the benefit of the Company's stakeholders in its chapter 11 proceedings. Under the KEIP, KEIP Participants will be entitled to receive up to one-half of the Maximum Incentive Bonus upon consummation of a chapter 11 plan, with the percentage of total payout being dependent upon the date such plan is consummated. 100% of the Plan Metric portion of the Maximum Incentive Bonus will be paid if the Effective Date occurs by September 30, 2016; 80% will be paid if the Effective Date occurs by October 31, 2016; and 60% will be paid if the Effective Date occurs by November 30, 2016. KEIP Participants will be entitled to receive up to one-half of the Maximum Incentive Bonus dependent upon the Company's achieving compliance with certain covenants set forth in their debtor in possession financing agreement with Wells Fargo. KEIP Participants will be entitled to receive one quarter of the Maximum Incentive Bonus dependent upon the Company's continued compliance with the cash receipts covenant of the DIP Agreement for the pendency of the Company's chapter 11 cases. KEIP Participants will be entitled to the remaining one quarter of the Maximum Incentive Bonus dependent upon the Company's compliance with the total disbursements covenant of the DIP Agreement during the pendency of their chapter 11 cases. KEIP Participants will be paid in two equal cash payments with the first payment made no later than 15 days after the Effective Date, and the second payment to be made no later than December 15, 2016; provided that, the second payment to Gary Schoenfeld shall not be made until the second payment has been made to holders of certain unsecured trade claims. The Maximum Incentive Bonus amounts for those KEIP Participants who are named executive officers of the Company: KEIP Participant Maximum Incentive Bonus ---------------- ----------------------- Gary H. Schoenfeld, President and CEO 75% of Salary or $787,500 Alfred Chang, SVP of Men's Merchandising 50% of Salary or $210,000 Jonathan Brewer, SVP of Product Development & Supply Chain 40% of Salary or $167,500 Craig E. Gosselin, SVP of Human Resources & General Counsel 40% of Salary or $157,600 Ernie Sibal, Vice President and CFO 48% of Salary or $145,300 If any KEIP Participant voluntarily leaves or is terminated for cause within 60 days after earning the KEIP award (or before), he or she will be required to return the amount awarded to him or her (or will forfeit the award if such termination occurs prior to payment of the KEIP award). If a KEIP participant is terminated without cause prior to the consummation of the Plan Metric and/or the DIP Financing Metrics, he or she will receive his or her award on a prorated basis considering the proportion of time from the date on which the Company filed for chapter 11 relief to the date the award is earned. About Pacific Sunwear Founded in 1982 in Newport Beach, California, as a surf shop, Pacific Sunwear of California, Inc., operates in the teen and young adult retail sector, selling men's and womens apparel, accessories, and footwear. The Company went public in 1993 (NASDAQ: PSUN), and peaked with 965 stores in 2006. At present, the Company has approximately 593 retail locations nationwide under the names "Pacific Sunwear" and "PacSun," which stores are principally in mall locations. The Company has 2,000 full-time workers. Through its ecommerce business, the Company operates an e-commerce site at http://www.pacsun.com/ On April 7, 2016, Pacific Sunwear of California, Inc., and two affiliated debtors each filed a voluntary petition for relief under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware. The cases are jointly administered under Case No. 16-10882 and are pending before the Honorable Laurie Selber Silverstein. The Debtors sought Chapter 11 protection with a Chapter 11 plan that would convert debt into equity. The Debtors tapped Young Conaway Stargatt & Taylor, LLP, and Klee, Tuchin, Bogdanoff & Stern LLP as attorneys; FTI Consulting, Inc., as financial advisor; Guggenheim Securities, LLC, as investment banker; and Prime Clerk LLC as claims and noticing agent. PACIFIC SUNWEAR: UST Opposes Bid to Hire FTI as Fin'l Advisors -------------------------------------------------------------- Andrew R. Vara, the acting U.S. Trustee for Region 3, filed with the U.S. Bankruptcy Court for the District of Delaware its objection to application of Pacific Sunwear of California, Inc., to employ FTI Consulting, Inc. as financial advisors. The U.S. Trustee objects to the Application to retain FTI based on the fees to be charged in the bankruptcy cases, which the Application indicates are 30% higher than the rates FTI had been charging the Debtors immediately before the bankruptcy filing. According to the U.S. Trustee, the Debtors have not established that FTI's discontinuance of a pre-petition 30% discount rate upon the Debtors filing for bankruptcy is a reasonable term or condition of employment under the Bankruptcy Code. Andrew R. Vara, the Acting U.S. Trustee for Region 3, is represented by: Juliet Sarkessian, Esq. Trial Attorney 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 About Pacific Sunwear Founded in 1982 in Newport Beach, California as a surf shop, Pacific Sunwear of California, Inc. operates in the teen and young adult retail sector, selling men's and womens apparel, accessories, and footwear. The Company went public in 1993 (NASDAQ: PSUN), and peaked with 965 stores in 2006. At present, the Company has approximately 593 retail locations nationwide under the names "Pacific Sunwear" and "PacSun," which stores are principally in mall locations. The Company has 2,000 full-time workers. Through its ecommerce business, the Company operates an e-commerce site at http://www.pacsun.com/ On April 7, 2016, Pacific Sunwear of California, Inc., and two affiliated debtors each filed a voluntary petition for relief under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware. The cases are jointly administered under Case No. 16-10882 and are pending before the Honorable Laurie Selber Silverstein. The Debtors sought Chapter 11 protection with a Chapter 11 plan that would convert debt into equity. The Debtors tapped Young Conaway Stargatt & Taylor, LLP, and Klee, Tuchin, Bogdanoff & Stern LLP as attorneys; FTI Consulting, Inc., as financial advisor; Guggenheim Securities, LLC, as investment banker; and Prime Clerk LLC as claims and noticing agent. An official committee of unsecured creditors appointed in the case has tapped Bayard, P.A. and Cooley LLP as counsel, and Province Inc. as its financial advisor. PARAGON OFFSHORE: Directors Re-elected; PwC Stays as Auditor ------------------------------------------------------------ Paragon Offshore plc disclosed in a regulatory filing the results of the 2016 annual general meeting of its shareholders, held on May 19, 2016: -- Anthony R. Chase was re-elected as a director of the Company for a one-year term that will expire at the Company's annual general meeting (the "AGM") in 2017. -- Thomas L. Kelly II was re-elected as a director of the Company for a one-year term that will expire at the AGM in 2017. -- John P. Reddy was re-elected as a director of the Company for a one-year term that will expire at the AGM in 2017. -- Randall D. Stilley was re-elected as a director of the Company for a one-year term that will expire at the AGM in 2017. -- Dean E. Taylor was re-elected as a director of the Company for a one-year term that will expire at the AGM in 2017. -- William L. Transier was re-elected as a director of the Company for a one-year term that will expire at the AGM in 2017. -- David W. Wehlmann was re-elected as a director of the Company for a one-year term that will expire at the AGM in 2017. -- J. Robinson West was re-elected as a director of the Company for a one-year term that will expire at the AGM in 2017. -- The appointment of PricewaterhouseCoopers LLP as Independent Registered Public Accounting Firm for fiscal year 2016 was ratified. -- PricewaterhouseCoopers LLP was re-appointed as UK statutory auditors to the Company (to hold office from the conclusion of the 2016 AGM until the conclusion of the next AGM at which accounts are laid before the Company). -- The audit committee of the Board was authorized to determine the Company's UK statutory auditors' compensation. -- The compensation of the Company's named executive officers, as disclosed in the Company's proxy statement relating to the 2016 AGM pursuant to the executive compensation disclosure rules promulgated by the U.S. Securities and Exchange Commission, was approved on a non-binding advisory basis. 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. PARSLEY ENERGY: S&P Affirms 'B' CCR & Revises Outlook to Positive ----------------------------------------------------------------- S&P Global Ratings affirmed its 'B' corporate credit rating on Parsley Energy LLC and revised the rating outlook to positive from stable. At the same time, S&P assigned its 'B-' issue-level rating and '5' recovery rating to Parsley's proposed $200 million senior unsecured debt issuance. A '5' recovery rating indicates S&P's expectation of modest (10%-30%, upper half of the range) recovery in the event of a default. The 'B-' issue-level rating and '5' recovery rating on the company's existing unsecured debt are unchanged. "The positive outlook reflects Parsley's reserve and production growth and our expectation the company will continue to expand development of its acreage without adding significant debt leverage to its financial risk profile," said S&P Global Ratings credit analyst Michael Tsai. Although the company's overall debt will increase slightly from the proposed debt issuance, Parsley has made a number of equity offerings over the previous year to finance acquisitions and add cash to the balance sheet to prefund capital spending, allowing the company to maintain a minimal draw on its reserve-based lending facility. The company's proved properties continue to hold a high proportion of undeveloped acreage, which S&P expects to decrease as they move forward with their aggressive drilling program. S&P also expects crude oil to grow as a percentage of their total production from focus on horizontal drilling, which will benefit the Parsley's profitability. The positive outlook reflects S&P's expectation that it could raise the rating on Parsley Energy LLC if it is able to successfully execute on its drilling program and increase its reserves and production to a level commensurate with 'B+' rated E&P companies. S&P would also look for the company's FFO to debt to be sustained above 12% under current industry conditions and liquidity to be adequate or better when considering an upgrade. S&P expects Parsley's cash balances, operating cash flow, and availability under its RBL facility will be sufficient to fund planned capital spending and increase its production and reserves through 2016. S&P could revise the outlook to stable if Parsley's growth strategy does not proceed as expected, with production below and/or costs above S&P's expectations. PAUL CHRISTENSEN: Court Dismisses Ch. 11 Case --------------------------------------------- Judge Alan Jaroslovsky of the United States Bankruptcy Court for the Northern District of California summarily dismissed the bankruptcy case In re PAUL G. CHRISTENSEN, Debtor(s), No. 16-10298 (Bankr. N.D. Calif.), retaining jurisdiction to sanction Christensen and Kutrubes, undo any damage the filing may have caused, and issue necessary injunctive relief. The court then ordered Christensen and Kutrubes to show cause why they should not be sanctioned. A hearing was held this date. The New York order bars Christensen from filing further bankruptcy cases. The order appears to be necessary to curb a substantial abuse of bankruptcy laws. It appears to be still in effect. The court will leave contempt proceedings to the New York court, but will honor it by enjoining Christensen and Kuturbes from filing any bankruptcy case in the Northern District of California while the New York order remains in effect. Any filing in violation of this order may subject them both to contempt sanctions in this court as well as the New York court. This Chapter 11 case was commenced in violation of two bankruptcy court orders. On January 4, 2013, in Chapter 13 case number 12-32197, the Honorable Thomas E. Carlson ordered that debtor Paul Christensen was barred from filing any future case without paying the filing fee in full. On June 3, 2013, the Honorable Sean H. Lane of the United States Bankruptcy Court for the Southern District of New York issued an order finding that Christensen was acting in concert with abusive filers and permanently barring him, among others, from filing any new bankruptcy case in that or any United States Bankruptcy Court. Christensen's attorney, Peter L. Kutrubes, who has represented Christensen in some of his prior cases, filed this case without the filing fee and without obtaining relief from the New York order. The docket shows that this is the eighth bankruptcy case filed by Christensen since 2010 and the second filed in violation of the New York order. All of Christensen's cases have been dismissed due to Christensen's failure to comply with orders of the court or the Federal Rules of Bankruptcy Procedure. A full-text copy of the Memorandum dated April 15, 2016 is available at https://is.gd/zDkYKd from Leagle.com. Office of the U.S. Trustee/SR, U.S. Trustee, is represented by Lynette C. Kelly, U.S. Office of the U.S. Trustee. PAUL GREMILLION: Gemino Can File Claim for HealthEdge, Court Rules ------------------------------------------------------------------ In the adversary case PAUL GREMILLION, SR., Plaintiff, v. HEALTHEDGE INVESTMENT FUND, L.P., CONCENTRIC EQUITY PARTNERS II, L.P. HE-IOM AFFILIATES, LLC, Defendants, Adversary No. 15-1080, Judge Elizabeth W. Magner of the United States Bankruptcy Court for the Eastern District of Louisiana ruled that by virtue of its Collateral Assignment, Gemino Healthcare Finance, LLC, has the power and authority to enforce the Judgment. As such, Gemino has authority to file a claim on behalf of HealthEdge; negotiate treatment of the claim whether by payment, settlement or treatment under a plan of reorganization; and oppose or support by vote or objection any proposed plan of reorganization. The issue involves a determination of which party, Gemino or HealthEdge, has the authority to file and pursue claims against the Debtor as well as negotiate and vote on any plan of reorganization submitted by Debtor. A full-text copy of the Opinion dated April 19, 2016 is available at https://is.gd/WUnZGI from Leagle.com. The bankruptcy case is IN RE: PAUL GREMILLION, SR., Chapter 11, Debtor, Case No. 15-13063, Section A. Paul Gremillion, Sr., Plaintiff, is represented by John C. Anderson, Esq. -- Anderson & Daniels, LLC. HealthEdge Investment Fund, LP, Defendant, is represented by Jeremy T. Grabill, Esq. -- jeremy.grabill@phelps.com -- Phelps Dunbar LLP, Arthur R. Kraatz, Esq. -- arthur.kraatz@phelps.com -- Phelps Dunbar, LLP, I. Danielle Mashburn-Myrick, Esq. -- danielle.mashburn-myrick@phelps.com -- Phelps Dunbar LLP. Glen Gremillion, Intervenor-Plaintiff, is represented by Barry W. Miller, Esq. -- bmiller@hellerdraper.com -- Heller, Draper, Patrick, Horn & Dabney, L.L.C. PLY GEM HOLDINGS: Stockholders Elect 3 Directors ------------------------------------------------ Ply Gem Holdings, Inc., held its 2016 annual meeting of stockholders on May 17, at which the stockholders: (i) elected each of Michael P. Haley, Gary E. Robinette and Joost F. Thesseling as Class III directors; (ii) approved an advisory resolution on executive compensation; and (iii) ratified the appointment of KPMG LLP as the Company's independent registered public accounting firm for 2016. About Ply Gem Based in Cary, North Carolina, Ply Gem Holdings Inc. is a diversified manufacturer of residential and commercial building products, which are sold primarily in the United States and Canada, and include a wide variety of products for the residential and commercial construction, the do-it-yourself and the professional remodeling and renovation markets. Ply Gem reported net income of $32.3 million on $1.83 billion of net sales for the year ended Dec. 31, 2015, compared to a net loss of $31.3 million on $1.56 billion of net sales for the year ended Dec. 31, 2014. As of April 2, 2016, Ply Gem had $1.21 billion in total assets, $1.31 billion in total liabilities and a total stockholders' deficit of $101 million. * * * In May 2010, Standard & Poor's Ratings Services raised its (unsolicited) corporate credit rating on Ply Gem to 'B-' from 'CCC+'. "The ratings upgrade reflects our expectation that the Company's credit measures are likely to improve modestly over the next several quarters to levels that we would consider more in line with the 'B-' corporate credit rating," said Standard & Poor's credit analyst Tobias Crabtree. PORTER BANCORP: Has Resale Prospectus of 3.4 Million Shares ----------------------------------------------------------- Porter Bancorp, Inc., filed with the Securities and Exchange Commission a Form S-3 registration statement relating to the resale from time to time by Mendon Capital Master Fund Ltd., Mendon Capital QP LP, Renee Portnoy Revocable Trust and T V Lark Trust of 2,300,000 of the Company's common shares held by them plus 1,100,000 common shares that it may issue from time to time upon the conversion of the Company's Non-Voting Common Shares currently held by the selling shareholders. On April 15, 2016, the Company issued 2,900,000 common shares and 1,100,000 non-voting common shares in a private placement transaction exempt from the registration requirements of the Securities Act of 1933. The Company will not receive any proceeds from the sale of securities by the selling shareholders. The Company's common shares are listed on the NASDAQ Capital Market under the symbol "PBIB." On May 18, 2016, the closing sale price of the Company's common shares on the NASDAQ Capital Market was $1.92 per share. A full-text copy of the prospectus is available for free at: https://is.gd/ZMmjme About Porter Bancorp Porter Bancorp, Inc., is a bank holding company headquartered in Louisville, Kentucky. Through its wholly-owned subsidiary PBI Bank, the Company operates 18 full-service banking offices in 12 counties in Kentucky. Porter Bancorp reported a net loss of $3.21 million on $36.57 million of interest income for the year ended Dec. 31, 2015, compared to a net loss of $11.15 million on $39.51 million of interest income for the year ended Dec. 31, 2014. As of March 31, 2016, Porter Bancorp had $938 million in total assets, $904 million in total liabilities and $34.6 million in total stockholders' equity. The Company's auditor Crowe Horwath, LLP, in Louisville, Kentucky, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2015, citing that "the Company has incurred substantial losses in 2015, 2014 and 2013, largely as a result of asset impairments resulting from the re-evaluation of fair value and ongoing operating expenses related to the high volume of other real estate owned and non-performing loans. In addition, the Company's bank subsidiary is not in compliance with a regulatory enforcement order issued by its primary federal regulator requiring, among other things, increased minimum regulatory capital ratios as well as being involved in various legal proceedings in which the Company disputes material factual allegations against the Company. Additional losses, adverse outcomes from legal proceedings or the continued inability to comply with the regulatory enforcement order may result in additional adverse regulatory action. These events raise substantial doubt about the Company's ability to continue as a going concern." POSITIVEID CORP: Closes $55,000 Note Purchase Agreement with Essex ------------------------------------------------------------------ PositiveID Corporation closed on May 17, 2016, a Securities Purchase Agreement with Essex Global Investment Corp. providing for the purchase of a Convertible Redeemable Note in the aggregate principal amount of $55,000. The Note has been funded. The Note bears interest at the rate of 10% per annum, and is due and payable on May 17, 2017. The Note may be converted by Essex at any time into shares of Company's common stock. The Note is a long-term debt obligation that is material to the Company. The Note may be prepaid in accordance with the terms set forth in the Note. The Note also contains certain representations, warranties, covenants and events of default including if the Company is delinquent in its periodic report filings with the SEC, and increases in the amount of the principal and interest rates under the Note in the event of such defaults. In the event of default, at the option of Essex and in Essex's sole discretion, Essex may consider the Note immediately due and payable. About PositiveID Delray Beach, Fla.-based PositiveID Corporation has historically developed, marketed and sold RFID systems used for the identification of people in the healthcare market. Beginning in early 2011, the Company has focused its strategy on the growth of its HealthID business, including the continued development of its GlucoChip, its Easy Check breath glucose detection device, its iglucose wireless communication system, and potential strategic acquisition opportunities of businesses that are complementary to its HealthID business. PositiveID reported a net loss attributable to common stockholders of $11.5 million on $2.94 million of revenues for the year ended Dec. 31, 2015, compared with a net loss attributable to common stockholders of $8.22 million on $945,000 of revenues for the year ended Dec. 31, 2014. As of March 31, 2016, PositiveID had $3.61 million in total assets, $17.9 million in total liabilities, and a total stockholders' deficit of $14.3 million. 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 reported a net loss, and used cash for operating activities of approximately $11,404,000 and $4,507,000 respectively, in 2015. At Dec. 31, 2015, the Company had a working capital deficiency, a stockholders' deficit and an accumulated deficit of approximately $10,694,000, $11,842,000 and $144,161,000 respectively. These matters raise substantial doubt about the Company's ability to continue as a going concern. PUERTO RICO: House Committee Approves Bill with Bipartisan Support ------------------------------------------------------------------ Nick Timiraos, writing for Daily Bankruptcy Review, reported that a House committee on May 25 advanced legislation to address Puerto Rico's debt crisis with solid bipartisan support, a strong sign the bill could move quickly through Congress ahead of a potential default by the territory on July 1. According to the report, the legislation would create a debt-restructuring process and empower a federal oversight board to supervise what is shaping up to be the largest municipal debt workout in American history. The measure wouldn't spend any federal money, the report related. The House Committee on Natural Resources, which has oversight of federal territories, advanced the bill on a 29-10 vote, with 14 Republicans and 15 Democrats backing the legislation, the report further related. The bill, which produced a rare moment of bipartisan cooperation in an election year, has drawn strong opposition from some bondholders and other political groups that spent millions of dollars on television advertisements to defeat it, the report said. Puerto Rico last year began defaulting on several classes of nearly $70 billion in debt it owes, threatening to worsen the island's growth prospects after a decadelong recession, the report noted. Because it isn't a state, its municipalities aren’t eligible to restructure their debts in U.S. bankruptcy courts, the report added. PVH CORP: S&P Affirms 'BB+' CCR, Outlook Remains Stable ------------------------------------------------------- S&P Global Ratings said that it affirmed its 'BB+' corporate credit rating on New York-based PVH Corp. The outlook remains stable. At the same time, S&P affirmed its 'BBB' issue-level rating on the company's senior secured facilities, indicating S&P's expectation of very high (90% to 100%) recovery in the event of payment default. S&P also affirmed its 'BB+' issue-level rating on the company's $700 million unsecured notes due 2022. The recovery rating remains '3' indicating S&P's expectation of meaningful (50% to 70%; upper end of the range) recovery in the event of payment default. S&P estimates the company's adjusted debt was approximately $4.8 billion at Jan. 31, 2016. "The affirmation reflects PVH's good market position, portfolio of well-recognized brands, geographic diversification, good profitability, and moderate leverage," said S&P Global Ratings credit analyst Peter Deluca. S&P has also considered the company's participation in the highly competitive apparel sector, which is vulnerable to fashion risk, foreign exchange volatility, and changes to consumer preferences and spending patterns. PVH ranks among the larger U.S. apparel companies, with over $8 billion in sales. The company's market position and scale has been enhanced through acquisitions. The company recently completed the acquisition of 55% interest in TH Asia Ltd., representing the balance of the China joint venture. S&P believes PVH's acquisitions have leveraged its operating expertise and spurred growth while reducing its reliance on its legacy dress shirt business and U.S. market. The company also has the ability to grow organically and has demonstrated it can develop brands through its sourcing, design, information technology, marketing, and distribution infrastructure. PVH's sales of about $8 billion exceed those of Ralph Lauren Corp. (about $7.4 billion in sales) but continue to lag VF Corp. (over $12.3 billion in sales). PVH's diversification is good, with broad product offerings across sportswear, dresswear (men's shirts and neckwear), and, to a lesser extent, footwear. The company offers a diverse portfolio of brands including Calvin Klein, Tommy Hilfiger, Van Heusen, IZOD, ARROW, Warner's, and Speedo. Revenues are generated through wholesale distribution, company-operated retail stores, and through licensing arrangements. The company sells products globally across various retail channels ranging from department stores to mass merchandisers, with the five largest customers representing about 22% of revenue with no single client representing more than 10% of sales. PVH's geographic diversification is also good, with more than 45% of revenue from overseas. PVH's operating performance has been consistently good, in part it is because its global sourcing platform provides for production flexibility. Nearly all of PVH's products (with the exception of a small amount of handmade neckwear) are sourced from off-shore manufacturing facilities. The company's sources are extensive and reach across roughly 50 countries and 1,300 factories. However, the company remains susceptible to rising labor and transportation costs. The stable outlook reflects S&P's expectation that PVH's operating performance will remain at least near current levels based on continuing good performance of its diversified brands, strong market positions and global supply chain efficiency despite S&P's forecast of weak top-line growth and a difficult consumer environment. S&P projects debt-to-EBITDA leverage to be in the 3x-3.5x range over the next two years. S&P would maintain a stable outlook following a leveraging acquisition if the company to maintain debt-to-EBITDA leverage below 4x. QUANTUM FUEL: Judge Sets July 8 Deadline for Filing Claims ---------------------------------------------------------- A federal judge approved the deadline proposed by Quantum Fuel Systems Technologies Worldwide Inc. for filing pre-bankruptcy claims against the company. The order, issued by Judge Mark Wallace of the U.S. Bankruptcy Court for the Central District of California, requires creditors to file a proof of their claims on or before July 8, 2016. 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. About Quantum Fuel Lake Forest, California-based Quantum Fuel Systems Technologies Worldwide, Inc., is an innovator, developer and producer of compressed natural gas (CNG) fuel storage tanks and packaged fuel storage systems for heavy-, medium-, and light-duty trucks and passenger vehicles. The Company also produces integrated vehicle system technologies, including engine and vehicle control systems and drivetrains. It supplies its tanks and systems to truck and automotive original equipment manufacturers and aftermarket and OEM truck integrators worldwide. Quantum Fuel filed a Chapter 11 bankruptcy petition (Bankr. C.D. Calif. Case No. 16-11202) on March 22, 2016. The petition was signed by Brian W. Olson as chief executive officer. The Debtor listed total assets of $23.10 million and total debts of $21.7 million. Foley & Lardner LLP represents the Debtor as counsel. Judge Mark S Wallace is assigned to the case. QUEST SOLUTION: Incurs $1.5 Million Net Loss in First Quarter ------------------------------------------------------------- Quest Solution, Inc., filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $1.50 million on $18.4 million of total revenues for the three months ended March 31, 2016, compared to a net loss of $422,082 on $10.67 million of total revenues for the same period in 2015. As of March 31, 2016, Quest Solution had $53.4 million in total assets, $55.8 million in total liabilities and a total stockholders' deficit of $2.34 million. At March 31, 2016, the Company had unrestricted cash in the amount of $1.14 million and a working capital deficit of $21.9 million. In addition, the Company's stockholders' deficit and accumulated other comprehensive loss was $20.4 million at March 31, 2016, and $18.5 million at Dec. 31, 2015. A full-text copy of the Form 10-Q is available for free at: https://is.gd/JMjdI7 About Quest Solution Quest Solution (formerly known as Amerigo Energy, Inc.) is a national mobility systems integrator with a focus on design, delivery, deployment and support of fully integrated mobile solutions. The Company takes a consultative approach by offering end to end solutions that include hardware, software, communications and full lifecycle management services. The highly tenured team of professionals simplifies the integration process and delivers proven problem solving solutions backed by numerous customer references. Motorola, Intermec, Honeywell, Panasonic, AirWatch, Wavelink, SOTI and Zebra are major suppliers which Quest Solution uses in its systems. Quest Solution reported a net loss of $1.71 million on $63.9 million of total revenues for the year ended Dec. 31, 2015, compared to net income of $301,649 on $37.3 million of total revenues for the year ended Dec. 31, 2014. The Company's auditors RBSM LLP, in Leawood, Kansas, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2015, citing that the Company has a working capital deficiency and significant subordinated debt resulting from acquisitions. These factors raise substantial doubt about the Company's ability to continue as a going concern. RD3J LTD: Wants Period for Plan Confirmation Extended By 60 Days ---------------------------------------------------------------- RD3J, Ltd., asks the U.S. Bankruptcy Court for the Southern District of Texas to extend the exclusive period under which the Debtor may confirm a plan of reorganization for 60 days after a hearing on approval of the Disclosure Statement. Consideration prior to May 31, 2016, is essential because the current exclusivity period expires on that date, the Debtors assert. The Debtor filed its Chapter 11 Plan and Disclosure Statement on March 31, 2016, during its exclusive period to file a plan. Subsequently, PlainsCapital Bank filed an objection to the Disclosure Statement. The Debtor's exclusivity period to confirm a plan expires May 31, 2016. On May 12, 2016, the Court entered an order canceling the scheduled hearing on approval of the Disclosure Statement, with the hearing to be rescheduled by order of the Court upon request of the Debtor and/or PlainsCapital Bank. The Debtor and PlainsCapital Bank are currently in the process of negotiating terms for an agreed plan. If an agreement is reached, the Plan and Disclosure Statement will both need to be amended before a hearing on approval of the Disclosure Statement will be requested. Once the Disclosure Statement is approved, sufficient notice must be provided to creditors of confirmation and voting. Accordingly, Debtor will be unable to proceed with approval of its current disclosure statement or confirm its Chapter 11 Plan prior to the expiration of the current exclusivity period. The Debtor believes that ample cause exists for granting an extension of the Debtor's Exclusivity Period to confirm a plan. The justifications include: a. the Debtor timely filed its Plan and Disclosure Statement on March 31, 2016, prior to the expiration of the current Exclusivity Period. The hearing on approval of the Disclosure Statement has been continued to a future date which has not yet been determined; b. the Plan and Disclosure Statement must be amended to address the objections raised by PlainsCapital Bank. Alternatively, the Debtor and PlainsCapital Bank are in the process of negotiating the terms of a consensual plan. Additional time is needed before an agreement can be finalized. If an agreement is reached, both the Plan and Disclosure Statement will require amendments. The Debtor will not be able to confirm a plan prior to the expiration of the current Exclusivity Period on May 31, 2016; c. the Debtor has, in good faith, made progress towards reorganization and should generate sufficient income to maintain operations and provide for required payments contemplated in the Plan; d. the requested extension would not prejudice the interests of creditors; and e. the burden on the Debtor's estate of an extension is de minimis. Counsel for PlainsCapital Bank has currently no position with respect to the requested extension of exclusivity contemplated by this motion. RD3J, Ltd., filed for Chapter 11 bankruptcy protection (Bankr. S.D. Tex. Case No. 15-70184) on April 6, 2015. The Debtor is represented by: Antonio Villeda, Esq. VILLEDA LAW GROUP 6316 North 10th Street, Bldg. B McAllen, Texas 78504 Tel: (956) 631-9100 Fax: (956) 631-9146 E-mail: avilleda@mybusinesslawyer.com RESPONSE BIOMEDICAL: May Issue 496,262 Shares Under Plans --------------------------------------------------------- Response Biomedical Corp. filed a Form S-8 registration statement with the Securities and Exchange Commission to register a total of 496,262 shares of common stock issuable under the Company's Restricted Share Unit Plan and Non-Employee Directors Deferred Share Unit Plan. A copy of the prospectus is available for free at https://is.gd/V0OM3w About Response Biomedical Based in Vancouver, Canada, Response Biomedical Corporation develops, manufactures and sells diagnostic tests for use with its proprietary RAMP(R) System, a portable fluorescence immunoassay- based diagnostic testing platform. The RAMP(R) technology utilizes a unique method to account for sources of error inherent in conventional lateral flow immunoassay technologies, thereby providing the ability to quickly and accurately detect and quantify an analyte present in a liquid sample. Consequently, an end-user on-site or in a point-of-care setting can rapidly obtain important diagnostic information. Response Biomedical currently has thirteen tests available for clinical and environmental testing applications and the Company has plans to commercialize additional tests. Response Biomedical reported a net loss and comprehensive loss of C$5.99 million in 2013, a net loss and comprehensive loss of C$5.28 million in 2012 and a net loss and comprehensive loss of C$5.37 million in 2011. As of March 31, 2016, Response Biomedical had C$9.96 million in total assets, C$11.7 million in total liabilities and a total shareholders' deficit of $1.69 million. PricewaterhouseCoopers LLP, in Vancouver, Canada, in its report on the consolidated financial statements for the year ended Dec. 31, 2014, noted that the company has incurred recurring losses from operations and has an accumulated deficit at Dec. 31, 2014, which raises substantial doubt about its ability to continue as a going concern. RICEBRAN TECHNOLOGIES: CEO's Employment Expires Nov. 30 ------------------------------------------------------- In March 2016, the compensation committee of the board of directors of RiceBran Technologies conducted its annual review of John W. Short, the Company's chief executive officer, and determined that the Company would negotiate a new employment agreement with Mr. Short to replace his existing employment agreement. In connection with these ongoing negotiations, on May 13, 2016, the compensation committee notified Mr. Short that the Company would not renew his existing employment agreement. Mr. Short's existing employment agreement will expire on Nov. 30, 2016, as disclosed in a Form 8-K report filed with the Securities and Exchange Commission. 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. RiceBran reported 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 March 31, 2016, RiceBran had $34.9 million in total assets, $26.9 million in total liabilities and $7.66 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. RICEBRAN TECHNOLOGIES: LF-RB Mgt. Reports 9% Stake as of May 18 --------------------------------------------------------------- In an amended Schedule 13D filed with the Securities and Exchange Commission, LF-RB Management, LLC, Gary L. Herman, and Michael Goose disclosed that as of May 18, 2016, they beneficially own 952,479 shares shares of common stock of RiceBran Technologies, Inc., representing 9 percent of the shares outstanding. Stephen D. Baksa also disclosed beneficial ownership of 496,910 shares. A copy of the regulatory filing is available for free at: https://is.gd/3Fv891 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. RiceBran reported 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 March 31, 2016, RiceBran had $34.9 million in total assets, $26.9 million in total liabilities and $7.66 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. RIVERSIDE PLAZA: Court Set to Hear UCF's Bid to Lift Stay --------------------------------------------------------- A U.S. bankruptcy court is set to hear a motion filed by UCF I Trust 1 to either lift the automatic stay or dismiss the Chapter 11 case of Riverside Plaza Developers LLC. The U.S. Bankruptcy Court for the Northern District of Illinois will take up the motion in a preliminary hearing scheduled for June 2, 2016. UCF had requested to lift the stay so it can continue its "non-bankruptcy enforcement measures" with respect to a property of Riverside. UCF, which is owed $14.6 million by Riverside, claimed that it is not secured given that the company's property is only worth $13.3 million. About Riverside Plaza Riverside Plaza Developers, LLC, based in North Barrington, Illinois, filed for Chapter 11 bankruptcy (Bankr. N.D. Ill. Case No. 16-08747) on March 14, 2016. Riverside Plaza Developers indicated in its petition that it is a Single Asset Real Estate debtor. Judge Jack B. Schmetterer presides over the case. The Debtor is represented by Neal L Wolf, Esq., at Tetzlaff Law Offices, LLC. The petition was signed by Mary Christine Misik, manager. RIVERSIDE PLAZA: Hires Linberger & Co. as Appraiser --------------------------------------------------- Riverside Plaza Developers LLC seeks permission from the U.S. Bankruptcy Court for the Northern District of Illinois to employ Linberger & Company, LLC as appraiser. The Debtor is an Illinois limited liability company, which developed a mixed-use residential and retail development located near the Fox River at 1 North Main Street, Algonquin, Illinois. The Property was originally permitted as a condominium building, but the 2011/2012 condominium market was very low. To complete construction of the Property, the Debtor, as borrower, obtained a construction loan and entered into a Loan Agreement and Promissory Note with UCF I Trust 1, in the principal amount of $11,175,000. To secure repayment of the Loan, the Debtor entered into a certain Mortgage and an Assignment of Leases and Rents with UCF dated October 4, 2013. The Mortgage and Assignment granted the UCF a security interest in, among other things, the Property and the rents and profits of the Property. On February 2, 2016, UFC filed a foreclosure action in the United States Districts Court for the Northern District of Illinois and immediately sought the appointment of a receiver. On May 2, 2016, UCF filed a Motion for Relief from the Automatic Stay or, in the alternative, to Dismiss the Bankruptcy Case. The Debtor requires Linberger's expertise in this Chapter 11 Case to, among other things, to provide a market value appraisal of the value of the property in connection with responding to the Stay Motion. The Debtor requires Linberger to: a. provide a written appraisal report of value of the Property in connection with responding to the Stay Motion and the filing of a confirmable plan of reorganization; and b. testify in Court regarding these matters. Linberger will be paid at these hourly rate: Mary Linberger $325 Linberger has requested a retainer in the amount of $3,000. Mary Linberger, owner and manger of Linberger & Company, LLC, assured the Court that his firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtors and their estates. Linberger can be reached at: Mary Linberger Linberger & Company, LLC 1017 Ridge Avenue Evanston, IL 60202 Phone: 312.968.1017 E-mail: mary@marylinberger.com About Riverside Plaza   Riverside Plaza Developers, LLC, based in North Barrington,  Illinois, filed for Chapter 11 bankruptcy (Bankr. N.D. Ill. Case No. 16-08747) on March 14, 2016. Riverside Plaza Developers indicated in its petition that it is a Single Asset Real Estate debtor.   Judge Jack B. Schmetterer presides over the case. The Debtor is represented by Neal L Wolf, Esq., at TETZLAFF LAW OFFICES, LLC.   The petition was signed by Mary Christine Misik, manager. ROSETTA GENOMICS: Reports 2016 First Quarter Financial Results -------------------------------------------------------------- Rosetta Genomics Ltd. reported a net loss of US$4.03 million on US$2.60 million of revenues for the three months ended March 31, 2016, compared to a net loss of US$3.86 million on US$321,000 of revenues for the three months ended March 31, 2015. As of March 31, 2016, the Company had US$19.26 million in total assets, US$3.44 million in total liabilities, all current, and total shareholders' equity of US$15.81 million. "We are especially pleased to report record quarterly clinical testing revenues as it demonstrates the progress we have made in expanding our molecular diagnostics test menu, selling our clinical testing products and improving collections," said Kenneth A. Berlin, president and chief executive officer of Rosetta Genomics. "Throughout the first quarter we completed the revamping of our sales force and invested in our billing and collections department. The results are reflected in our growing revenue and expanding customer base, as well as in improved collections. Further, these changes position us to drive revenue growth throughout the balance of the year and beyond. "The commercial launch of RosettaGX Reveal continues to be a prime focus for our team. We expect the positive performance data from our blinded validation study to be published in a peer-reviewed journal in the coming weeks. These data demonstrate exceptional performance and we anticipate that a journal publication will strongly support our reimbursement and sales efforts. In addition, our revamped sales team has been able to use RosettaGX Reveal to access new accounts to promote not only our exceptional thyroid offering, but also to promote our urologic cancer and solid tumor product lines. Since the beginning of the year, these promotional efforts resulted in the acquisition of over 30 thyroid customer accounts and over 60 new customer accounts for our urology and solid tumor businesses. "Our work for the balance of the year will continue to focus on driving revenue growth in both our base business as well as with our new products, such as RosettaGX Reveal, expanding reimbursement, improving collections and advancing our clinical development programs, which should position us to achieve a number of important milestones that will enhance shareholder value," concluded Mr. Berlin. As of March 31, 2016, Rosetta Genomics had cash, cash equivalents, restricted cash and short-term bank deposits of $12.6 million compared with $13.6 million as of Dec. 31, 2015. The Company used approximately $2.6 million in cash to fund operations during the first quarter of 2016, and collected approximately $2.7 million in cash from its clinical testing services in addition to $1.6 million in cash receipts from a licensing deal signed in December 2015. Based on the Company's current operations and plans, which include a cost-reduction plan should it be unable to raise sufficient additional capital, if necessary, Rosetta Genomics expects its current cash position will fund operations for at least the next 12 months. A full-text copy of the press release is available for free at: https://is.gd/xky8xZ About Rosetta Based in Rehovot, Israel, Rosetta Genomics Ltd. is seeking to develop and commercialize new diagnostic tests based on a recently discovered group of genes known as microRNAs. MicroRNAs are naturally expressed, or produced, using instructions encoded in DNA and are believed to play an important role in normal function and in various pathologies. The Company has established a CLIA- certified laboratory in Philadelphia, which enables the Company to develop, validate and commercialize its own diagnostic tests applying its microRNA technology. Rosetta Genomics reported a loss from continuing operations of US$17.34 million on US$8.26 million of total revenues for the year ended Dec. 31, 2015, compared to a loss from continuing operations of US$14.52 million on US$1.32 million of total revenues for the year ended Dec. 31, 2014. ROSLYN SEFARDIC: Wants Exclusive Plan Filing Extended to Sept. 21 ----------------------------------------------------------------- Roslyn Sefardic Center Corp. asks the U.S. Bankruptcy Court for the Eastern District of New York to extend the time within which the Debtor has the exclusive right to file a plan of reorganization and to solicit acceptances of the plan for 120 days through and including Sept. 21, 2016, and Nov. 22, 2016, respectively. A hearing on the request is set for July 14, 2016, at 11:00 a.m. The current Exclusivity Period and Acceptance Period expire on March 24, 2016 and July 25, 2016, respectively. The Debtor submits it should be granted the requested extensions of the Exclusive Periods so that it will have sufficient time to, inter alia, formulate, file and confirm a plan of reorganization. The Debtor has been focused on operating its business and restructuring its debt obligations. To that end, the Debtor continues to negotiate with Horizon Equities, the holder of a second lien on the Property for a discounted settlement of its debt. Additionally, the Debtor also intends on reaching out to L&L Associates with respect to its first priority tax lien to determine if some type of settlement can be reached in connection with this obligation as well. The Debtor is also preparing an application requesting that this Court establish a claims bar date in this case so that the Debtor can analyze the potential universe of claims against its estate. The Debtor has entered into preliminary discussions with a third party who has expressed an interest in the Debtor and the Property and may either (a) fund a plan of reorganization or (b) acquire the assets of the Debtor. Currently, this third-party has begun performing diligence with respect to the Debtor's assets and liabilities. The Debtor is hopeful that they can come to an agreement that will maximize the value of its estate and allow it to reorganize its outstanding obligations. The Debtor submits that while discussions are in its nascent states, its Exclusive Periods should be preserved to avoid any distractions or competing plans. Roslyn Sefardic Center Corp. is a religious non-for-profit corporation that operates a synagogue on its real property and improvements located on 1 Potters Lane, Roslyn Heights, New York. It filed for Chapter 11 bankruptcy protection (Bankr. E.D.N.Y. Case No. 16-70299) on Jan. 25, 2016. The Debtor is represented by: Arnold Mitchell Greene, Esq. ROBINSON BROG LEINWAND GREENE GENOVESE & GLUCK P.C. 875 Third Avenue, 9th Floor New York, New York 10022 Tel. No.: 212-603-6300 E-mail: amg@robinsonbrog.com RYCKMAN CREEK: Judge Appoints Richard Meth as Fee Examiner ---------------------------------------------------------- A U.S. bankruptcy judge appointed a fee examiner in the Chapter 11 case of Ryckman Creek Resources LLC. The order, issued by Judge Kevin Carey of the U.S. Bankruptcy Court in Delaware, appointed Richard Meth, Esq., a partner at Fox Rothschild LLP, as fee examiner. Mr. Meth, will review all fee applications for allowance of compensation and reimbursement of expenses filed by professionals, which have been employed in connection with the case under sections 327 or 1103 of the Bankruptcy Code. About Ryckman Formed on Sept. 8, 2009, Ryckman Creek Resources, LLC is engaged In the acquisition, development, marketing, and operation of a Natural gas storage facility known as the Ryckman Creek Facility. The Ryckman Creek Facility is a depleted crude oil and natural gas reservoir located in Uinta County, Wyoming. The Company began development of the reservoir into a natural gas storage facility in 2011. The Ryckman Creek Facility began commercial operations in late 2012 and received injections of customer gas and gas purchased by the Company. The Debtors have approximately 35 employees. Ryckman Creek Resources, LLC, Ryckman Creek Resources Holdings LLC, Peregrine Rocky Mountains LLC and Peregrine Midstream Partners LLC filed Chapter 11 bankruptcy petitions (Bankr. D. Del. Case Nos. 16-10292 to 16-10295) on Feb. 2, 2016. The petitions were signed by Robert Foss as chief executive officer. Kevin J. Carey has been assigned the case. The Debtors have engaged Skadden, Arps, Slate, Meagher & Flom LLP as counsel, AP Services, LLC as management provider, Evercore Group LLC as investment banker, and Kurtzman Carson Consultants LLC as claims and noticing agent. On April 11, 2016, Ryckman Creek Resources, LLC disclosed total assets of more than $205 million and total debts of more than $391.2 million. S. HEMENWAY: Hires Frederick & Rosen as Accountants --------------------------------------------------- S. Hemenway, Inc., seeks permission from the U.S. Bankruptcy Court for the District of Minnesota to employ Frederick & Rosen, Ltd. as accountants. The Debtor requires Frederick & Rosen to render these services: a. general business consulting; b. review of the Debtor's QuickBooks and prepare the Debtor's tax returns. Frederick & Rosen will be charging the Debtor $200 per hour for any work performed for the Debtor. Frederick & Rosen, Ltd. holds a pre-bankruptcy claim against the Debtor in the amount of $7,600.Frederick & Rosen, Ltd., has agreed to waive this pre-bankruptcy claim and therefore will hold no interest which is adverse to the Debtor or to the Debtor's estate and is, therefore, "disinterested" within the meaning of and pursuant to Section 327 of the United States Bankruptcy Code. Frederick & Rosen can be reached at: Thomas J. Rosen Frederick & Rosen, Ltd. 5922 Excelsior Boulevard Minneapolis 55416 Phone: 952-929-8557 S. Hemenway Inc., operator of a Visiting Angel franchised nursing home, filed a Chapter 11 bankruptcy petition (Bankr. D. Minn. Case No. 16-31466) on May 2, 2016. The petition was signed by Scott Hemenway, the president. Judge Katherina A. Constantine has been assigned the case. SABINE OIL: $4.90 Billion in Claims Filed as of May 5 ----------------------------------------------------- Sabine Oil & Gas Corp. disclosed in a regulatory filing with the Securities and Exchange Commission that as of May 5, 2016, approximately 1,516 claims totaling approximately $4.90 billion had been filed with the Bankruptcy Court against the Debtors. "It is possible that claimants will file amended claims in the future, including claims amended to assign values to claims originally filed with no designated value," Sabine said. "Through the claims resolution process, we have identified, and we expect to continue to identify, claims that we believe should be disallowed by the Bankruptcy Court because they are duplicative, have been later amended or superseded, are without merit, are overstated or for other reasons. We will file objections with the Bankruptcy Court as necessary for claims we believe should be disallowed." "Through the claims resolution process, differences in amounts scheduled by the Debtors and claims filed by creditors will be investigated and resolved, including through the filing of objections with the Bankruptcy Court where appropriate. In light of the number of claims filed, the claims resolution process will take additional time to complete, and it may continue after our emergence from bankruptcy. Accordingly, the ultimate number and amount of allowed claims is not presently known, nor can the ultimate recovery with respect to allowed claims be presently ascertained." About Sabine Oil & Gas Corporation Sabine Oil & Gas Corp. is an independent energy company engaged in the acquisition, production, exploration, and development of onshore oil and natural gas properties in the U.S. The Company's current operations are principally located in the Cotton Valley Sand and Haynesville Shale in East Texas, the Eagle Ford Shale in South Texas, the Granite Wash in the Texas Panhandle, and the North Louisiana Haynesville. The Company operates, or has joint working interests in, approximately 2,100 oil and gas production sites (approximately 1,800 operating and approximately 315 non-operating) and has approximately 165 full-time employees. Sabine Oil and its affiliated entities sought Chapter 11 protection(Bankr. S.D.N.Y. Lead Case No. 15-11835) in Manhattan on July 15, 2015. The Debtors have engaged Kirkland & Ellis LLP and Kirkland & Ellis International LLP, as counsel; Lazard Freres & Co. LLC, as investment banker and Prime Clerk LLC as notice, claims and balloting agent. The Debtors also tapped Zolfo Cooper Management, LLC, to provide Jonathan A. Mitchell as CRO and other additional personnel. The U.S. Trustee for Region 2 appointed five creditors to serve on the official committee of unsecured creditors. The Committee is represented by Mark R. Somerstein, Esq., Keith H. Wofford, Esq., and D. Ross Martin, Esq., at Ropes & Gray LLP as their counsel. The Committee is also hiring Blackstone Advisory Partners L.P. as investment banker; and Berkeley Research Group, LLC as financial advisor. SABINE OIL: Posts $135 Million Net Loss for March 31 Quarter ------------------------------------------------------------ Sabine Oil & Gas Corporation delivered to the U.S. Securities and Exchange Commission its Form 10-Q for the quarterly period ended March 31, 2016. Sabine Oil posted a net loss of $135,082,000 for the quarter, compared to a net loss of $284,031,000 for the same period a year ago. Revenues were down $48,160,000 for the quarter from $98,025,000 a year ago. At March 31, 2016, the Company had total assets of $650,236,000, total liabilities of $3,087,684,000 and total shareholders' deficit of $2,437,448,000. A copy of the Company's SEC report is available at https://is.gd/a3OiLn About Sabine Oil & Gas Corporation Sabine Oil & Gas Corp. is an independent energy company engaged in the acquisition, production, exploration, and development of onshore oil and natural gas properties in the U.S. The Company's current operations are principally located in the Cotton Valley Sand and Haynesville Shale in East Texas, the Eagle Ford Shale in South Texas, the Granite Wash in the Texas Panhandle, and the North Louisiana Haynesville. The Company operates, or has joint working interests in, approximately 2,100 oil and gas production sites (approximately 1,800 operating and approximately 315 non-operating) and has approximately 165 full-time employees. Sabine Oil and its affiliated entities sought Chapter 11 protection(Bankr. S.D.N.Y. Lead Case No. 15-11835) in Manhattan on July 15, 2015. The Debtors have engaged Kirkland & Ellis LLP and Kirkland & Ellis International LLP, as counsel; Lazard Freres & Co. LLC, as investment banker and Prime Clerk LLC as notice, claims and balloting agent. The Debtors also tapped Zolfo Cooper Management, LLC, to provide Jonathan A. Mitchell as CRO and other additional personnel. The U.S. Trustee for Region 2 appointed five creditors to serve on the official committee of unsecured creditors. The Committee is represented by Mark R. Somerstein, Esq., Keith H. Wofford, Esq., and D. Ross Martin, Esq., at Ropes & Gray LLP as their counsel. The Committee is also hiring Blackstone Advisory Partners L.P. as investment banker; and Berkeley Research Group, LLC as financial advisor. SAMSON RESOURCES: Committee Wants Exclusive Periods Terminated -------------------------------------------------------------- The Official Committee of Unsecured Creditors of Samson Resources Corporation, et al., asks the U.S. Bankruptcy Court for the District of Delaware to terminate the exclusive periods during which the Debtors may file a Chapter 11 plan and solicit acceptances of the plan. A hearing on the request is set for June 7, 2016, at 10:00 a.m. (Eastern). Objections to the request must be filed by May 31, 2016, at 4:00 p.m. (Eastern). The Committee says that the Debtors' Exclusive Periods should be terminated to permit the Committee's alternate plan to proceed to confirmation on a parallel path with that of the Debtors' amended plan. According to the Committee, the Debtors cannot meet their burden of establishing that cause exists to maintain the Exclusive Periods because (i) the Debtors have not made good faith progress in negotiating with the Committee, but are instead using exclusivity to pressure unsecured creditors to accept their Plan by threatening recoveries that are not legitimately tied to any actual potential outcomes, and (ii) the Amended Plan is not confirmable. On May 16, 2016, without any negotiation or input from the Committee, the Debtors filed a Chapter 11 plan that largely adopts the negotiating position of the putative first lien lenders, hands those lenders tens of millions of dollars of unencumbered assets, grants the lenders releases without just compensation to the estates, purports to "preserve" the secured lenders' long-dead adequate protection claims, and wrongfully provides free releases to the Debtors' equity sponsors. The Committee claims that to make matters worse, the Debtors' newest plan attempts to force unsecured creditors to accept all of its terms through a coercive deathtrap mechanism that places all unsecured creditors at risk of receiving no recovery at all if they vote to reject the plan. The Debtors purport to have filed their newest plan in response to some unarticulated pressure from secured lenders who have made it clear from the early stages of these cases that they have no desire to attempt to exercise their nonbankruptcy remedies to recover their collateral outside of this Court. The Debtors were aware that the Committee had been working with some of their largest unsecured creditors to develop a newmoney plan premised on an all-cash offer to the secured lenders and that would provide a material return to the Debtors' estates and unsecured creditors. According to the Committee, this is not the first time the Debtors have chosen to ignore the interests of unsecured creditors in these Cases in deference to their secured lenders. The Debtors filed their petitions with a plan of reorganization in the ready, the terms of which were dictated by a prepetition restructuring support agreement with secured lenders. That plan, like the one now on file, was extremely hostile to the estates and their unsecured creditors. That first plan contemplated that substantially all of the value of the estates would be ceded to prepetition secured lenders (in that iteration, the first and second lien lenders) and contained a threat to unsecured creditors designed to compel their acquiescence. The "peace offering" at the time -- represented by the Debtors to be the very best they could obtain in negotiations -- was 1% of the reorganized Debtors' equity. If, however, unsecured creditors rejected the plan, they would get only 0.5%, or less than $5 million of value in exchange for over $2 billion of funded unsecured debt. The unsecured creditors objected from the first days of these cases, setting forth three basic propositions: (i) the Debtors were vastly overvaluing the extent and value of collateral securing the lenders' loans because, among other faults, they had not performed even perfunctory diligence to determine what was, and what was not, actually collateral, (ii) the Debtors were vastly underestimating the extent and value of the estates' unencumbered assets, and (iii) if the secured lenders were not willing to pay the costs of a Chapter 11 process, including the costs of preserving and protecting their physical collateral, the Court should lift the automatic stay so that those lenders could commence foreclosure proceedings in all jurisdictions in which their putative collateral was located, leaving unsecured creditors to realize their recovery from what was, at that time, wholly unencumbered property. The Committee claims that the Debtors' Amended Plan on file represents a no win choice for unsecured creditors: vote for the plan and get less than one would in a Chapter 7 liquidation; fight the plan and either get nothing or end up six months down the road with no plan and administrative expenses running out of control. About Samson Resources Corporation Samson Resources Corporation, et al., filed Chapter 11 bankruptcy petitions (D. Del. Lead Case No. 15-11934) on Sept. 16, 2015. Philip W. Cook signed the petition as executive vice president and chief financial officer. The Debtors estimated assets and liabilities of more than $1 billion. Samson is an onshore oil and gas exploration and production company with interests in various oil and gas leases primarily located in Colorado, Louisiana, North Dakota, Oklahoma, Texas, and Wyoming. The Operating Companies operate, or have royalty or working interests in, approximately 8,700 oil and gas production sites. Samson was acquired by KKR and Crestview from Charles Schusterman in December 2011 for approximately $7.2 billion. The investor group provided approximately $4.1 billion in equity investments as part of the purchase price. Kirkland & Ellis LLP represents the Debtors as general counsel. Klehr Harrison Harvey Branzburg LLP is the Debtors' local counsel. Alvarez & Marsal LLC acts as the Debtors' financial advisor. Blackstone Advisory Partners L.P. serves as the Debtors' Investment banker. Garden City Group, LLC serves as claims and noticing agent to the Debtors. Andrew Vara, acting U.S. trustee for Region 3, appointed three creditors of Samson Resources Corp. and its affiliated debtors to serve on the official committee of unsecured creditors. The Committee has tapped White & Case LLP as counsel and Farnan LLP as local counsel. SH 130 CONCESSION: Files Schedules of Assets and Liabilities ------------------------------------------------------------ SH 130 Concession Company, LLC filed with the U.S. Bankruptcy Court for the Western District of Texas its amended schedules of assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- -------------- --------------- A. Real Property $1,163,958,129 B. Personal Property $18,443,407 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $1,648,500,369 E. Creditors Holding Unsecured Priority Claims $0 F. Creditors Holding Unsecured Non-Priority Claims $724,382 -------------- --------------- Total $1,182,401,536 $1,649,224,751 A copy of the schedules is available for free at: https://is.gd/21neNZ About SH 130 Concession Headquartered in Buda, Texas, SH 130 Concession Company, LLC (the "Concessionaire") was formed to finance, develop, design, construct, operate, and maintain segments five and six of Texas State Highway 130 (the "Tollway") in partnership with the Texas Department of Transportation. The Concessionaire, Zachry Toll Road - 56 LP and Cintra TX 56 LLC filed Chapter 11 bankruptcy petitions (Bankr. W.D. Tex. Case Nos. 16-10262, 16-10263 and 16-10264, respectively) on March 2, 2016. The petitions were signed by Alfonso Orol as chief executive officer. The Debtors estimated both assets and debts in the range of $1 billion to $10 billion. Toll Road - 56 and TX 56 are holding companies that collectively hold the equity interests in the Concessionaire. They have no operations and have no creditors. The Debtors have engaged Gibson, Dunn & Crutcher LLP as general counsel, Jackson Walker L.L.P. as local counsel, and Prime Clerk LLC as notice, claims, solicitation, balloting and tabulation agent. Judge Tony M. Davis has been assigned the case. SOUTHCROSS HOLDINGS: Asks Court to Close Chapter 11 Cases --------------------------------------------------------- Southcross Holdings LP and its debtor-affiliates are seeking the issuance and entry of a final decree closing their Chapter 11 reorganization cases. The Debtors stated that the chapter 11 cases have been "fully administered" within the meaning of section 350 of the Bankruptcy Code, making it appropriate for the Court to enter the Final Decree. In particular: (a) the Confirmation Order has become final and is non- appealable; (b) the Reorganized Debtors have emerged from chapter 11; (c) all payments required to be made pursuant to the Plan have been paid or provided for as of the Effective Date; (d) the Reorganized Debtors have assumed the business and management of the property dealt with by the Plan; (e) all anticipated motions, contested matters, and adversary proceedings in these chapter 11 cases have been or will be resolved at or before the hearing on this Motion; (f) all proofs of claim filed in these chapter 11 cases have been expunged or otherwise have been resolved; (g) all of the transactions contemplated by the Plan closed on the Effective Date; and (h) the Plan has been substantially consummated within the meaning of section 1101(2) of the Bankruptcy Code. While the Reorganized Debtors acknowledge that the payment of certain claims is still pending in accordance with the Plan, the Reorganized Debtors submit that such claims will be paid outside the chapter 11 cases in accordance with applicable nonbankruptcy law and the Plan. The Debtors are represented by: Zack A. Clement, Esq. ZACK A. CLEMENT PLLC 3753 Drummond Houston, TX 77025 Tel: (832) 274-7629 E-mail: zack.clement@icloud.com About Southcross Holdings Southcross Holdings LP owns and operates gathering and fractionation assets in the midstream energy sector. It is the parent company of Southcross Energy Partners GP, LLC and a major unitholder of Southcross Energy Partners, L.P., a publicly traded master limited partnership. EIG Global Energy Partners, Charlesbank Capital Partners and Tailwater Capital each indirectly own approximately one-third of Holdings. Holdings and its affiliates offer a full suite of midstream energy services, including natural gas gathering, treating, compression and transportation, as well as natural gas liquids fractionation and delivery to end-user markets. Southcross Holdings LP and 11 of its affiliates filed Chapter 11 bankruptcy petitions (Bankr. S.D. Tex. Lead Case 16-20111) on March 27, 2016. Bret M. Allan signed the petitions as authorized signatory. The Debtors estimated assets and debts in the range of $1 billion to $10 billion. The Debtors have hired Kirkland & Ellis LLP as general bankruptcy counsel, Zack A. Clement PLLC as co-counsel, Houlihan Lokey Capital, Inc. as financial advisor, Alvarez & Marsal as restructuring advisor and Epiq Systems as claims and noticing agent. Hon. Marvin Isgur has been assigned the jointly administered cases. SOUTHCROSS HOLDINGS: Schedules Filing Deadline Extended ------------------------------------------------------- Judge Marvin Isgur of the U.S. Bankruptcy Court for the Southern District of Texas extended the time for Southcross Holdings LP, et al. to file their schedules of assets and liabilities, and statements of financial affairs, through and including the date of entry of an order with respect to the Final Decree Motion. The order was without prejudice to the Debtors' right to seek further extensions of the time within which to file the Schedules and Statements or seek additional relief from the Bankruptcy Court regarding the filing of, or waiver of the requirement to file, the Schedule and Statements. About Southcross Holdings Southcross Holdings LP owns and operates gathering and fractionation assets in the midstream energy sector. It is the parent company of Southcross Energy Partners GP, LLC and a major unitholder of Southcross Energy Partners, L.P., a publicly traded master limited partnership. EIG Global Energy Partners, Charlesbank Capital Partners and Tailwater Capital each indirectly own approximately one-third of Holdings. Holdings and its affiliates offer a full suite of midstream energy services, including natural gas gathering, treating, compression and transportation, as well as natural gas liquids fractionation and delivery to end-user markets. Southcross Holdings LP and 11 of its affiliates filed Chapter 11 bankruptcy petitions (Bankr. S.D. Tex. Lead Case 16-20111) on March 27, 2016. Bret M. Allan signed the petitions as authorized signatory. The Debtors estimated assets and debts in the range of $1 billion to $10 billion. The Debtors have hired Kirkland & Ellis LLP as general bankruptcy counsel, Zack A. Clement PLLC as co-counsel, Houlihan Lokey Capital, Inc. as financial advisor, Alvarez & Marsal as restructuring advisor and Epiq Systems as claims and noticing agent. Hon. Marvin Isgur has been assigned the jointly administered cases. SPECTRASCIENCE INC: Posts $2 Million Net Loss for March 31 Qtr -------------------------------------------------------------- SpectraScience Inc. filed with the Securities and Exchange Commission its Form 10-Q report for the quarterly period ended March 31, 2016. SpectraScience posted a net loss of $2,056,334 for the quarter, from a net loss of $1,709,690 for the same period a year ago. SpectraScience posted zero revenues for the quarter. At March 31, 2016, the Company had $1,687,964 in total assets, total current liabilities of $10,434,652, and total shareholders' deficit of $8,777,538. As of March 31, 2016, the Company had a working capital deficit of $10,041,923 and cash of $1,785, compared to a working capital deficit of $8,324,600 and cash of $127,493 as of December 31, 2015. In December 2011, the Company entered into an Engagement Agreement with Laidlaw & Company (UK) Ltd., which Engagement Agreement was amended in July 2012. Under the Engagement Agreement, Laidlaw agreed to assist the Company in raising up to $20.0 million in capital over a two year period from the date of the Engagement Agreement. Subsequent to March 31, 2013, the Company has engaged other agents to assist the Company with raising capital and has commenced raising capital on its own. During the three months ended March 31, 2016, the Company raised $311,000, net of transaction costs of $24,000, under these agreements. However, if the Company does not receive additional funds in a timely manner, the Company could be in jeopardy as a going concern. The Company may not be able to find alternative capital or raise capital or debt on terms that are acceptable. Management believes that if the events defined in the Engagement Agreements occur as expected, or if the Company is otherwise able to raise a similar level of funds, such proceeds will be sufficient to allow the Company to sustain operations until it attains profitability and positive cash flows from operations. However, the Company may incur unknown expenses or may not be able to meet its revenue expectations requiring it to seek additional capital. In such event, the Company may not be able to find capital or raise capital or debt on terms that are acceptable. A copy of the Company's SEC report is available at http://goo.gl/R50Ryu SpectraScience, Inc. develops and manufactures innovative Laser Induced Fluorescence spectrophotometry systems capable of determining whether tissue is normal, pre-cancerous or cancerous without removing tissue from the body. The WavSTAT Optical Biopsy System is SpectraScience's first product to incorporate its proprietary fluorescence technology for clinical use. The WavSTAT System carries the CE mark designation which allows for the sale and marketing in the European Union for the diagnosis of cancer. SPORTS AUTHORITY: Going-Out-of-Business Sales to Start May 26 ------------------------------------------------------------- The joint venture of Gordon Brothers Group, Hilco Merchant Resources, and Tiger Capital Group, on May 24, 2016, disclosed that they will commence going-out-of-business sales at all Sports Authority retail locations beginning Thursday, May 26th. The joint venture partners' bid was approved by the U.S. bankruptcy court on May 24. Gordon Brothers Group, along with Tiger Capital, began assisting the Company with the wind-down of 142 stores in March after they filed for Chapter 11 bankruptcy protection as part of an operational restructuring plan. Going-out-of-business sales will offer unprecedented values, in all stores, on shoes, clothing, athletic gear and accessories including such popular brands as Under Armour, Nike, North Face, Wilson, Adidas, Spalding, ASICS, Head, Coleman, Everlast and Brooks. Sports Authority gift cards will be honored through June 27, 2016. Store fixtures, furniture and equipment will also be available for sale. Sports Authority and its predecessor companies including Gart Sports, Sportmart, Oshman's and Copeland's Sports have been selling sporting goods since 1919. Sports Authority has been one of the leading full-line sporting goods retailers and the active family's destination for footwear, apparel, fitness, team sports and outdoor recreation in the country. Headquartered in Englewood, CO, Sports Authority currently operates over 450 stores in 45 U.S. states. The Company has been dedicated to providing its customers with the best shopping experience possible by consistently providing great brands at great values as well as leading customer service and product knowledge. "Words cannot adequately express the disappointment we feel with the need to shut down our stores. We pursued both a plan of reorganization, as well as a sale of our business, but were unsuccessful in reaching an agreement that would have allowed Sports Authority to continue to operate," stated Michael Foss, Chief Executive Officer of Sports Authority. "We sincerely thank our loyal customers for supporting our company over the years and encourage them to shop early for tremendous values on their favorite sporting good products." "Our liquidation sales will offer shoppers extraordinary opportunities to buy the kinds of sporting goods, equipment and apparel they've come to expect from Sports Authority -- all at deep discounts," said a representative from the joint venture. "Most markdowns will be taken on already reduced prices, including clearance inventory, so the liquidation savings will be significant. Additionally, this event comes just in time for Father's Day gift giving and the start of summer outdoor activities." About Gordon Brothers Group Founded in 1903, Gordon Brothers Group -- http://www.gordonbrothers.com-- is a global advisory, restructuring and investment firm specializing in the retail, consumer products, industrial, and real estate sectors. Gordon Brothers Group maximizes value for both healthy and distressed companies by purchasing or selling all categories of assets, mitigating leases, appraising assets and operating businesses for extended periods. Gordon Brothers Group conducts over $50 billion worth of transactions and appraisals annually. As of November 2014, debt financing is provided by Gordon Brothers Finance Company (www.gbfinco.com). About Hilco Merchant Resources, LLC Hilco Merchant Resources -- http://www.hilcomerchantresources.com -- provides a wide range of analytical, advisory, asset monetization, and capital investment services to help define and execute a retailer's strategic initiatives. Hilco Merchant Resources' activities fall into several principal categories including acquisitions; disposition of underperforming stores; retail company or division wind downs; event sales to convert unwanted assets into working capital; facilitation of mergers and acquisitions; interim company, division or store management teams; loss prevention; and, the monetization of furniture, fixtures and equipment. Additionally, HMR now includes among its subsidiaries the nation's premier fixture and equipment liquidation firm, Hilco Fixture Finders (www.hilcofixturefinders.com), as well as the popular online retail and daily deal e-commerce company, Deal Genius, LLC (www.dealgenius.com). Hilco Merchant Resources is part of Northbrook, Illinois based Hilco Global -- http://www.hilcoglobal.com-- one of the world's leading authorities on maximizing the value of business assets by delivering valuation, monetization and advisory solutions to an international marketplace. Hilco Global operates twenty specialized business units offering services that include asset appraisal, retail and industrial inventory acquisition and disposition, real estate repositioning and renegotiation, strategic advisory and operational consulting and strategic capital equity investments. About Tiger Capital Group Tiger Capital Group -- http://www.tigergroup.com-- provides asset valuation, advisory and disposition services to a broad range of retail, wholesale, and industrial clients. With over 40 years of experience and significant financial backing, Tiger offers a uniquely nimble combination of expertise, innovation and financial resources to drive results. Tiger's seasoned professionals help clients identify the underlying value of assets, monitor asset risk factors and, when needed, provide capital or convert assets to capital quickly and decisively. Tiger maintains domestic offices in New York, Los Angeles, Boston, Chicago, and San Francisco, and international offices in Sydney, Perth, and Brisbane, Australia. About Sports Authority Sports Authority Holdings is a privately held company incorporated in Delaware and headquartered in Englewood, Colorado. Sports Authority is one of the nation's largest full-line sporting goods retailers, with roots dating back to 1928. Sports Authority currently operates 464 stores and five distribution centers across 40 U.S. states and Puerto Rico. Sports Authority is among the top five sporting goods retailers. On March 2, 2016, Sports Authority Holdings Inc. and six other related entities filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code. The cases are jointly administered under Case No. 16-10527 before the Honorable Mary F. Walrath in the United States Bankruptcy Court for the District of Delaware. SPORTS AUTHORITY: Hires Gordon Brothers as Appraiser ---------------------------------------------------- Sports Authority Holdings, Inc., and its debtor-affiliates seek permission from the U.S. Bankruptcy Court for the District of Delaware to employ Gordon Brothers Asset Advisors, LLC d/b/a Gordon Brothers-AccuVal as appraiser, nunc pro tunc to April 8, 2016. The Debtors require AccuVal to: a. interview and discuss with the Company personnel and advisor familiar with the Intellectual Property; b. identify what IP assets have value; c. review marketplace comparable transactions as available; d. perform industry research; e. perform valuation analysis utilizing appropriate methodology; and f. identify the value of the subject IP asset. As agreed by the Debtors and AccuVal the fees associated with the Appraisal total $45,000, exclusive of expenses, with one-half of the appraisal fee ($22,500) to be paid as a retainer in advance of beginning the engagement and the balance of the fee(22,500), plus the expenses , to be paid in full prior to the release of preliminary numbers or the final report. Michael D. Chartock, secretary of Gordon Brothers Asset Advisors, LLC DBA Gordon Brothers-AccuVal, 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. AccuVal can be reached at: Michael D. Chartock Gordon Brothers Asset Advisors, LLC d/b/a/ Gordon Brothers-AccuVal 800 Boylston Street, 27th Floor Boston, MA 02199 Phone: (617)210-7116 E-mail: mchartock@gordonbrothers.com About Sports Authority  Sports Authority Holdings, et al., are sporting goods retailers with roots dating back to 1928. The Debtors currently operate 464 stores and five distribution centers across 40 U.S. states and Puerto Rico. The Debtors offer a broad selection of goods from a wide array of household and specialty brands, including Adidas, Asics, Brooks, Columbia, FitBit, Hanesbrands, Icon Health and Fitness, Nike, The North Face, and Under Armour, in addition to their own private label brands. The Debtors employ 13,000 people.   Sports Authority and six of its affiliates filed Chapter 11 bankruptcy petitions (Bankr. D. Del. Case Nos. 16-10527 to 16-10533) on March 2, 2016. The petitions were signed by Michael E. Foss as chairman & chief executive officer.   The Debtors have engaged Gibson, Dunn & Crutcher LLP as general counsel, Young Conaway Stargatt & Taylor, LLP as co-counsel, Rothschild Inc. as investment banker, FTI Consulting, Inc., as financial advisor and Kurtzman Carson Consultants LLC as notice, claims, solicitation, balloting and tabulation agent. Lawyers at Pachulski Stang Ziehl & Jones LLP represent the Official Committee of Unsecured Creditors.  STONE ENERGY: Receives NYSE Notice of Non-Compliance ---------------------------------------------------- Stone Energy Corporation announced the receipt of formal notice of non-compliance with the New York Stock Exchange market capitalization listing standard. On May 17, 2016, the Company was notified by the NYSE that its average global market capitalization has been less than $50 million over a consecutive 30 trading-day period at the same time that its stockholders' equity is less than $50 million, which is non-compliant with Section 802.01B of the NYSE Listed Company Manual. Under the NYSE's rules, the Company has 10 business days from receipt of the notification to submit a letter confirming that the Company will submit a plan that demonstrates its ability to regain compliance within 18 months. Thereafter, the Company will have 45 calendar days following its confirmation letter to the NYSE to submit such plan. About Stone Energy Stone Energy is an independent oil and natural gas company engaged in the acquisition, exploration, exploitation, development and operation of oil and gas properties. The Company has been operating in the Gulf of Mexico Basin since its incorporation in 1993 and have established a technical and operational expertise in this area. The Company has leveraged its experience in the GOM conventional shelf and expanded its reserve base into the more prolific basins of the GOM deep water, Gulf Coast deep gas and the Marcellus and Utica shales in Appalachia. As of Dec. 31, 2015, the Company's estimated proved oil and natural gas reserves were approximately 57 MMBoe or 342 Bcfe. During 2015, approximately 95 MMBoe or 570 Bcfe of the Company's estimated proved reserves were revised downward as a result of lower oil, natural gas and natural gas liquids prices. Stone Energy reported a net loss of $1.1 billion in 2015 following a net loss of $189.54 million in 2014. As of March 31, 2016, Stone Energy had $1.64 billion in total assets, $1.87 billion in total liabilities and a total stockholders' deficit of $225 million. * * * In March 2016, Standard & Poor's lowered its corporate credit rating on U.S.-based oil and gas exploration and production company Stone Energy to 'CCC-' from 'CCC+'. As reported by the TCR on May 23, 2016, Moody's Investors Service downgraded Stone Energy Corporation's Corporate Family Rating (CFR) to Ca from Caa2, Probability of Default Rating (PDR) to Ca-PD from Caa2-PD, and senior unsecured rating to Ca from Caa3. The SGL-4 Speculative Grade Liquidity (SGL) rating was affirmed. The rating outlook remains negative. STONE ENERGY: Stockholders Re-Elect 10 Directors to Board --------------------------------------------------------- At the annual meeting of stockholders of Stone Energy Corporation, the stockholders: (a) re-elected George R. Christmas, B. J. Duplantis, Peter D. Kinnear, David T. Lawrence, Robert S. Murley, Richard A. Pattarozzi, Donald E. Powell, Kay G. Priestly, Phyllis M. Taylor David H. Welch as directors each to serve a term of one year; (b) ratified the appointment of Ernst & Young LLP as Stone's independent registered public accounting firm for fiscal 2016; (c) approved, on an advisory basis, the compensation of the Company's executive officers; (d) approved the amendment to the Stock Incentive Plan to increase the number of shares reserved for issuance under the Stock Incentive Plan by 450,000 shares; (e) approved the material terms of the Stock Incentive Plan, as amended by the Amendment, for the purposes of complying with the requirements of Section 162(m) of the Internal Revenue Code; (f) approved an amendment to Stone's Certificate of Incorporation to increase the number of shares of authorized common stock from 150,000,000 shares to 300,000,000 shares; and (g) approved a series of three alternative potential amendments to Stone's Certificate of Incorporation to authorize the Board to effect a reverse stock split of the Company's common stock at ratios of 1-for-5, 1-for-10 and 1-for-20, respectively, such ratio to be determined by the Board if the Board subsequently determines to proceed with the reverse stock split, and to proportionately decrease the authorized shares of common stock. About Stone Energy Stone Energy is an independent oil and natural gas company engaged in the acquisition, exploration, exploitation, development and operation of oil and gas properties. The Company has been operating in the Gulf of Mexico Basin since its incorporation in 1993 and have established a technical and operational expertise in this area. The Company has leveraged its experience in the GOM conventional shelf and expanded its reserve base into the more prolific basins of the GOM deep water, Gulf Coast deep gas and the Marcellus and Utica shales in Appalachia. As of Dec. 31, 2015, the Company's estimated proved oil and natural gas reserves were approximately 57 MMBoe or 342 Bcfe. During 2015, approximately 95 MMBoe or 570 Bcfe of the Company's estimated proved reserves were revised downward as a result of lower oil, natural gas and natural gas liquids prices. Stone Energy reported a net loss of $1.1 billion in 2015 following a net loss of $189.54 million in 2014. As of March 31, 2016, Stone Energy had $1.64 billion in total assets, $1.87 billion in total liabilities and a total stockholders' deficit of $225 million. * * * In March 2016, Standard & Poor's lowered its corporate credit rating on U.S.-based oil and gas exploration and production company Stone Energy to 'CCC-' from 'CCC+'. As reported by the TCR on May 23, 2016, Moody's Investors Service downgraded Stone Energy Corporation's Corporate Family Rating (CFR) to Ca from Caa2, Probability of Default Rating (PDR) to Ca-PD from Caa2-PD, and senior unsecured rating to Ca from Caa3. The SGL-4 Speculative Grade Liquidity (SGL) rating was affirmed. The rating outlook remains negative. SUNEDISON INC: Exclude TerraForm Entities from DIP, DIF Says ------------------------------------------------------------ DIF INFRA 4 US LLC and DIF IV Co-Invest LLC object to SunEdison, Inc., et al.'s request for authority to obtain postpetition financing to the extent the Debtors are seeking authority to require any of the TerraForm Private Entities to provide credit support for the Obligations incurred, or to be incurred. DIF also objects to the relief sought insofar as DIF has not had the opportunity to review the Proposed Final Order, which was not filed with the Motion. Counsel for DIF INFRA 4 US LLC and DIF IV Co-Invest LLC: Oren Buchanan Haker, Esq. STOEL RIVES LLP 900 SW Fifth Avenue, Suite 2600 Portland, Oregon 97204 Telephone: (503) 224-3380 Facsimile: (503) 220-2480 Email: oren.haker@stoel.com About SunEdison, Inc. SunEdison, Inc., is a developer and seller of photovoltaic energy solutions, an owner and operator of clean power generation assets, and a global leader in the development, manufacture and sale of silicon wafers to the semiconductor industry. On April 21, 2016, SunEdison, Inc., and 25 of its affiliates each filed a Chapter 11 bankruptcy petition (Bankr. S.D.N.Y. Case Nos. 16-10991 to 16-11017). Martin H. Truong signed the petitions as senior vice president, general counsel and secretary. The Debtors disclosed total assets of $20.71 billion and total debts of $16.14 billion as of Sept. 30, 2015. The Debtors have hired Skadden, Arps, Slate, Meagher & Flom LLP as counsel, Togut, Segal & Segal LLP as conflicts counsel, Rotschild Inc. as investment banker and financial advisor, McKinsey Recovery & Transformation Services U.S., LLC, as restructuring advisors and Prime Clerk LLC as claims and noticing agent. SUNVALLEY SOLAR: Incurs $830,000 Net Loss in First Quarter ---------------------------------------------------------- Sunvalley Solar, Inc., filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $829,761 on $0 of revenues for the three months ended March 31, 2016, compared to a net loss of $34,226 on $925,742 of revenues for the same period in 2015. As of March 31, 2016, SunValley had $5.52 million in total assets, $4.18 million in total liabilities and $1.34 million in total stockholders' equity. As of March 31, 2016, the Company had current assets in the amount of $3,459,693, consisting of cash and cash equivalents in the amount of $1,032,740, accounts receivable of $2,022,549, inventory in the amount of $107,870, costs in excess of billings on uncompleted contracts of $161,899, prepaid expenses and other current assets of $97,135, and restricted cash of $37,500. As of March 31, 2016, the Company had current liabilities in the amount of $4,185,249. These consisted of accounts payable and accrued expenses in the amount of $3,524,366, customer deposits of $450,212, accrued warranty of $104,870, advances from contractors of $103,389, and the current portion of a capital lease in the amount of $2,412. The Company's working capital deficit as of March 31, 2016 was therefore $725,556. A full-text copy of the Form 10-Q is available for free at: https://is.gd/JOglWU 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 net income of $195,811 on $5.78 million of revenues for the year ended Dec. 31, 2015, compared with a net loss of $1.28 million on $3.31 million of revenues for the year ended Dec. 31, 2014. 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 an accumulated deficit of $3,449,834, which raises substantial doubt about its ability to continue as a going concern. T&H PLASTICS: Taps Polnick Law Firm as Legal Counsel ---------------------------------------------------- T&H Plastics, Inc. seeks approval from the U.S. Bankruptcy for the Southern District of Texas to hire The Polnick Law Firm, PLLC as its counsel and designate Veronica Polnick as attorney-in-charge. Ms. Polnick charges $275 per hour for attorney time, $100 per hour for paralegal time and $50 per hour for clerical time. She will also receive reimbursement for work-related expenses. Ms. Polnick disclosed in an affidavit that she does not represent any interest adverse to the Debtor and its estate. Polnick can be reached through: Veronica A. Polnick Genevieve M. Graham 2311 Canal St., Suite 326 Houston, TX 77003 Tel: 832-533-2603 Fax: 832-504-9489 E-mail: veronica.polnick@polnicklaw.com gen.graham@polnicklaw.com About T&H Plastics T&H Plastics, Inc. sought protection under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy for the Southern District of Texas (Case No. 16-32525) on May 17, 2016. TAKATA CORP: Will Restructure, Seek Cash Amid Air-Bag Recalls ------------------------------------------------------------- Mike Spector, writing for The Wall Street Journal, reported that Takata Corp. hired investment bankers to seek a cash infusion and negotiate with auto makers over the ballooning costs it faces for rupture-prone air bags linked to 11 deaths and more than 100 injuries world-wide. According to the report, Takata tapped Lazard Ltd. to help craft a restructuring plan to help it deal with what are expected to be billions of dollars in liabilities stemming from the faulty air bags, a steering committee for the Japanese company said on May 25, confirming an earlier report from the Journal. The company hopes to find a financial investor or automotive company to provide more cash, and reach a deal with car makers on sharing the costs of recalling nearly 70 million air bags in the U.S. alone, the report related. The steering committee, made up of business, financial and legal experts in Japan, retained Lazard within the past month, the report said, citing people familiar with the matter. Lazard's work soliciting an investor and conversations with auto makers remains in early stages, the report added. Japan-based Takata Corporation (TYO:7312) -- http://www.takata.com/en/--develops, manufactures and sells safety products for automobiles. The Company offers seatbelts, airbags, steering wheels, child seats and trim parts. The Company has subsidiaries located in Japan, the United States, Brazil, Germany, Thailand, Philippines, Romania, Singapore, Korea, China and other countries. TECK RESOURCES: Fitch Rates $1-Bil. New Notes 'BB-/RR3' ------------------------------------------------------- Fitch Ratings has assigned a 'BB-/RR3' rating to Teck Resources Limited's issue of senior unsecured notes guaranteed by certain Teck subsidiaries. The new notes will rank pari passu with the company's revolving credit and bilateral facilities, and ahead of the senior unsecured notes that are not guaranteed. Proceeds of the new notes are to be used to fund the cash tender offers to purchase up to $1 billion aggregate principal amount of the 3.15% notes due 2017, 3.85% notes due 2017, 2.50% notes due 2018 and 3.0% notes due 2019 announced May 23, 2016. Fitch has also upgraded the $3 billion revolving credit facility (RCF) due 2020 and the $1.2 billion RCF due 2017 to 'BB-/RR3' and downgraded Teck's unsecured non-guaranteed notes to 'B-/RR6'. In addition, Fitch has affirmed Teck's Issuer Default Rating (IDR) at 'B+'. The Rating Outlook remains Negative. A full list of rating actions follows at the end of this release. About C$9.6 billion in debt and $5.2 billion in RCFs is affected by these rating actions. The ratings reflect expectations for sizable cash burn, elevated financial leverage, weak demand growth and excess supply in metallurgical coal and to a lesser degree in copper and zinc. Teck has been focused on reducing costs and capital spending to preserve cash while funding Fort Hills during a weak commodity price environment. The company has also been monetizing precious metals streams, cut its dividends and stated that it could monetize infrastructure assets but that it would not raise equity finance. KEY RATING DRIVERS Liquidity Fitch estimates cash burn for 2016 and 2017 could exceed C$2 billion in aggregate. Near-term debt maturities are C$28 million in 2016 and C$855 million in 2017 (comprised primarily of two $300 million notes). In addition, Fitch estimates that Teck could require an additional C$457 million of letters of credit (LOCs) in 2016 and an additional C$100 million in 2017 in connection with the Fort Hills project. Fitch estimates Teck will end 2017 with C$3 billion in liquidity given the transactions announced May 23 and assuming no asset sales and no diminution of the bilateral facilities. At March 31, 2016, liquidity included $3 billion available under the RCF maturing in July 2020, $415 million under the $1.2 billion RCF maturing in June 2017, and C$1.5 billion in cash on hand. Fitch estimates minimum required cash to be C$400 million. Teck has announced that it has received commitments to amend the $1.2 billion RCF, extending $1 billion of commitments to June 2019. The credit facilities require Teck to maintain a debt-to-total capitalization ratio of not more than 0.5x. Teck reported that the ratio was 0.35x at March 31, 2016. Fitch does not expect this covenant to be breached, but notes that the covenant calculation does not add-back non-cash impairments. In addition, as of March 31, 2016, Teck has C$1.45 billion in LOCs issued under $1.65 billion in uncommitted bilateral facilities, some of which can be cancelled with 90 days' notice. The subsidiary guarantees supporting the proposed new notes also support the revolving credit and bilateral facilities. Recovery Analysis Fitch assumes a going-concern EBITDA of C$1.5 billion which compares to 80% of the LTM EBITDA of C$1.9 billion, a going-concern enterprise value of 5x the going-concern EBITDA for $7.7 billion, and 10% of enterprise value for administrative claims. Fitch assumes that the guaranteed facilities and notes will have priority over the non-guaranteed notes, and that in times of distress, the full amount of the committed facilities would be used and the uncommitted and undrawn facilities would be cancelled. The result of this analysis shows good ('RR3') recovery for the guaranteed facilities even after using full availability under secured and guaranteed debt baskets, but poor recovery ('RR6') for the unguaranteed facilities. Prior analysis showed average recovery ('RR4') for all notes and facilities given that these ranked equally. The amendment to the $1.2 billion facility will limit the amount of secured and guaranteed debt. The maximum amount of secured debt will be equal to the greater of 4% of consolidated net tangible assets and $1 billion. The maximum amount of guaranteed debt (including secured debt) will be equal to the greater of 9% of consolidated net tangible assets and $2.25 billion. There are carve-outs to each of the restrictions. Negative pledge clauses under the company's existing debt indentures prohibit granting of security on principal property and shares of restricted subsidiaries unless the notes are equally and rateably secured with standard exemptions including indebtedness up to 10% of consolidated net tangible assets. Principal property includes the Elkview Mine, the Fording River Mine, the Highland Valley Copper Mine, the Red Dog Mine and any other mineral property and other fixed assets located in Canada or the U.S. which is greater than 10% of consolidated net tangible assets. Restricted subsidiaries are those with substantially all assets or operations in Canada or the U.S. and which own or lease a principal property or primarily own or hold securities of restricted subsidiaries. Teck reports that as of March 31, 2016, consolidated net tangible assets were C$32 billion, 10% of which is approximately C$3.2 billion. De-Levering Absent asset sales, Fitch expects leverage to increase with borrowing to finance the Fort Hills construction and ramp-up. At March 31, 2016, total debt-to-EBITDA was 4.7x and this figure could rise to over 6x before gradually dropping to below 4x by the end of 2019 with output from Fort Hills and the aid of improved commodity prices. Commodity Price Exposure The outlook for metallurgical coal prices is weak given persistent oversupply. Fitch expects this condition to persist through 2016 and result in lower profits and cash flow. Teck guides that a $1/tonne change in its coal realizations impacts profits by C$23 million. For 2015, Teck realized $93/tonne on its coal sales on average. Fitch expects the average hard coking coal benchmark to be $85/tonne in 2016, down from $102/tonne on average in 2015. Teck guides to a range of total cost per tonne of C$91-C$97 ($65-$69 at an exchange rate assumption of C$1.4=$1) compared with C$99 ($76 at the exchange rate of C$1.3=$1) in 2015. Total costs in the first quarter of 2016 were C$101/tonne. Teck reports that a $0.01/lb. change in copper prices impacts profits by C$6 million. Average copper realizations were $2.50/lb. in 2015 compared with the year to April 29, 2016 average of $2.14/lb. and Fitch's 2016 assumption of $2.18/lb. Teck reports that a $0.01/lb. change in Zinc prices impacts profits by C$9 million. Average zinc realizations were $0.87/lb. in 2015 compared with the year to April 29, 2016 average of $0.78/lb. and Fitch's 2016 assumption of $0.78/lb. Fort Hills Teck guides to C$960 million in spending on the Fort Hills oil sands project in Canada in 2016 out of a total remaining spend of C$1.3 billion (C$1 billion remaining as of April 25, 2016). The Fort Hills project is a partnership among Suncor Energy Inc. (50.8%), Total E&P Canada Ltd. (29.2%) and Teck (20%). Production is not anticipated to start before the end of 2017 but is expected to be at 90% capacity within 12 months. The project is expected to have cash costs in the range of C$20 -C$24/barrel of bitumen, excluding sustaining capex of roughly C$3/barrel, and a 50-year mine life. Fitch estimates break even at $45/barrel WTI oil price compared with the year to April 29, 2016 average of $35.24 and Fitch's 2018 assumption of $55/bbl. Total capital guidance for the year is C$1.98 billion including C$540 million of capitalized stripping and C$305 million of sustaining capital. KEY ASSUMPTIONS -- Production at guidance and fairly flat after 2016; -- Coal and copper unit cost decline with currency and fuel impacts as well as cost initiatives; -- Fitch's mid-cycle commodity price assumptions for commodities prices; -- Capital expenditures at guidance, and fairly flat through 2017 given the Fort Hill spending. RATING SENSITIVITIES Positive: Future developments that may, individually or collectively, lead to positive rating actions include: -- Leverage expected to be below 4.3x by the end of 2018. -- The metallurgical coal market returns to balance faster than expected. -- A sustainable, meaningful reduction in debt and financial leverage. Negative: Future developments that may, individually or collectively, lead to negative rating actions include: -- Expectations of reduced economics of the Fort Hills project. -- Expectation that available liquidity declines below C$2 billion. -- Expectations that FFO Adjusted leverage would be sustained above 5x for an extended period. CORPORATE PROFILE The credit benefits from Teck's long-lived reserves, leading low-cost position in zinc, its leading position in the seaborne hard metallurgical coal market, and solid core position in copper. Globally, Teck is the second-largest seaborne hard coking coal producer after BHP-Mitsubishi Alliance and is at about the mid-point of the cost curve (FOB port). Teck is in the top 15 largest copper producers, globally, with about average costs and is the third largest zinc producer, in the lowest quartile on costs. Mine lives are generally over 20 years. Coal accounted for 37%, zinc accounted for 33% and copper accounted for 30% of segment operating EBITDA in 2015. Canada accounted for about 55% of 2015 gross profit before depreciation by region and there are also operations in the U.S. (21%), Chile (2%) and Peru (14%). FULL LIST OF RATING ACTIONS Teck Resources Limited -- Issuer Default Rating (IDR) affirmed at 'B+'/Negative Outlook; -- Senior unsecured guaranteed credit facilities upgraded to 'BB- /RR3' from 'B+/RR4'; -- Senior unsecured guaranteed notes assigned a 'BB-/RR3' rating; -- Senior unsecured notes downgraded to 'B-/RR6' from 'B+/RR4'. TECK RESOURCES: Moody's Assigns B1 Rating on US$1BB Sr. Notes ------------------------------------------------------------- Moody's Investors Service assigned a B1 rating to Teck Resources Limited's proposed US$1 billion aggregate principal amount of guaranteed senior unsecured notes due 2021 and 2024. At the same time Moody's downgraded its existing senior unsecured (not guaranteed) debt ratings to Caa1 from B3, reflecting its position in the capital structure behind the new notes and credit facilities with respect to claim on collateral at the guaranteeing subsidiaries level. The company's B3 Corporate Family Rating, B3-PD Probability of Default Rating and SGL-2 Speculative Grade Rating remain unchanged. The outlook remains negative. Proceeds from the new notes will be used to refinance existing notes, which mature in 2017, 2018 and 2019, through Teck's announced tender offer. Downgrades: Issuer: Teck Resources Limited Senior Unsecured Regular Bond/Debenture, Downgraded to Caa1(LGD5) from B3(LGD4) Senior Unsecured Shelf, Downgraded to (P)Caa1 from (P)B3 Assignments: Issuer: Teck Resources Limited Senior Unsecured Regular Bond/Debenture, Assigned B1 (LGD2) Outlook Actions: Issuer: Teck Resources Limited Outlook, Remains Negative RATING RATIONALE Teck's new proposed notes, its US$3 billion revolving credit facility due 2020 and its US$1.2 billion revolving credit facility due 2017 (there are commitments to extend the facility to 2019 at a reduced US $1 billion size) will have guarantees by its subsidiaries Teck Coal Partnership, Teck Financial Corporation Ltd., TCL U.S. Holdings Ltd., Teck Alaska Incorporated and Teck Metals Ltd. These subsidiaries generated over 80% of Teck's gross profit in 2015. Teck's existing senior unsecured debt does not have guarantees from its subsidiaries at this time, and resultantly the new notes and credit facilities will have priority in the assets of the guarantors and are ranked above the existing rated debt in the application of our Loss Given Default (LGD) methodology. The B1 rating on the proposed guaranteed senior unsecured notes reflects a one notch downward override from the LGD model implied rating, given our view that size of the priority debt is large relative to the lower ranking debt (over $5 billion guaranteed, about $6 billion not guaranteed), not all subsidiaries are providing a guarantee and the priority ranking is the result of a guarantee rather than security. Teck's B3 CFR is driven primarily by expected high leverage and continuing material free cash flow consumption due to sizable capital expenditure requirements and exposure to weak commodity prices. Providing an offset are the diversity and scale of its business, low geopolitical risks, and a good average cost position. Moody's expects Teck's adjusted Debt/EBITDA will exceed 6.0 x in 2016 and could increase to over 7.0x in 2017, incorporating base commodity price assumptions of US$80/tonne for benchmark metallurgical coal, US$2.15/pound for copper and US$0.75/pound for zinc. The company's significant spending on the Fort Hills oil sands development project (of which it does not control the capital decision process), at a time when commodity prices continue to be under pressure, will cause Teck's free cash flow consumption to total approximately C$750 million in 2016 and C$500 million in 2017. Absent improvement in commodity prices beyond Moody's expectations, asset sales, equity issuance (which management has ruled out) or other inorganic actions taken by management, leverage will increase. Teck's rating outlook is negative because its leverage will remain at higher than normal levels for its B3 rating, cash flow will remain sizably negative through at least 2017, and with US$600 million (after the proposed refinancing) of unsecured notes maturing over the through 2017-2019 period, there could be medium-term refinancing challenges. Teck's liquidity is good (SGL-2) through 2016, driven by Moody's estimate that Teck's cash requirements will total about C$1.2 billion through the year, compared to cash sources that total about C$5.2 billion. Cash requirements include about C$750 million of negative free cash flow, about C$400 million of minimum balance sheet cash needs and no material debt maturities in 2016. Teck however has US$600 million of notes due in 2017. Sources include C$1.5 billion in cash at March 31, 2016, and C$3.7 billion of unused revolvers at March 31, 2016: US$1.2 billion matures in June 2017 (US$785 million drawn for letters of credit, there are commitments to extend the facility to 2019 at a reduced US$1 billion size) and US$3 billion matures in 2020 (undrawn). Moody's expects that Teck will maintain ample cushion to its maximum 50% Debt/Capitalization debt covenant. Teck's rating could be downgraded to Caa1 if liquidity deteriorates; or there is an increased likelihood that Teck will be unable to refinance upcoming debt maturities. Teck's rating could be upgraded to B2 if the majority of the capital spend at Fort Hills is largely completed, there is a reasonable expectation of sustained neutral or positive free cash flow and there is a high level of certainty that Teck will be able to refinance its upcoming debt maturities through 2019. Moody's believes this would be contingent on improved commodity prices. Headquartered in Vancouver, British Columbia, Canada, Teck Resources is a diversified mining company with assets in Canada, the U.S., Peru and Chile. The company is a leading producer of metallurgical coal, operates one of the world's largest zinc mines (Red Dog in Alaska) and also produces a meaningful amount of copper. Revenues for 2015 were C$8.3 billion. The principal methodology used in these ratings was Global Mining Industry published in August 2014. TECK RESOURCES: S&P Affirms 'B+' CCR, Outlook Negative ------------------------------------------------------ S&P Global Ratings said it affirmed its 'B+' long-term corporate credit rating on Vancouver-based globally diversified mining company Teck Resources Ltd. The outlook is negative. At the same time, S&P Global Ratings assigned its 'BB-' issue-level rating and '2' recovery rating to the company's proposed US$1 billion of senior unsecured notes that, along with Teck's bank facilities, will be guaranteed by subsidiaries that account for the majority of the company's assets. The '2' recovery rating corresponds with substantial (70%-90%, at the upper end of the range) recovery and issue-level rating one-notch above the corporate credit rating. S&P also affirmed its 'B+' issue-level rating on Teck's existing senior unsecured notes. However, S&P revised its recovery rating on the notes to '4' from '3'. A '4' recovery rating corresponds with average (30%-50%; at the upper end of the range) recovery in our default scenario. These notes are now subordinated to the proposed notes and Teck's bank facilities, which reduces their recovery prospects in S&P's simulated default scenario. "We consider the planned bond issuance as positive to Teck's liquidity position but not to an extent that warrants a rating action," said S&P Global Ratings credit analyst Jarrett Bilous. "In our view, the company's estimated core credit ratios are weak for the ratings and heavily dependent on sustained improvement in metallurgical coal, copper, and zinc prices to reach levels we consider commensurate with the ratings," Mr. Bilous added. The negative outlook primarily reflects the potential that average realized prices in Teck's core commodity segments, which include metallurgical coal, copper, and zinc, will remain subdued in 2016 and into 2017 and reduce the prospects improvement in its core credit ratios from weak estimated levels. S&P could downgrade Teck if S&P believes the company will sustain core credit measures considered weak for the rating, including adjusted debt-to-EBITDA of about 7x and FFO-to-debt below 10% or EBITDA interest coverage below 2x. In this scenario, S&P would expect average metallurgical coal prices below current levels, and relatively stable copper and zinc prices that are not sufficiently offset by cost reductions or other initiatives over the next 12 months. In addition, S&P could downgrade the company if it views Teck's business risk profile as fair, which could result from a downward revision to the company's operating efficiency or profitability assessment. S&P could revise the outlook to stable in the event it estimates Teck will sustain an adjusted debt-to-EBITDA ratio of about 5x, with lower-than-expected free cash flow deficits. S&P would also expect Teck to maintain a satisfactory business risk profile. TRANS ENERGY: In Default Under Morgan Stanley Credit Agreement -------------------------------------------------------------- Trans Energy, Inc., disclosed in a regulatory filing with the Securities and Exchange Commission that on May 20, 2016, it notified Morgan Stanley Capital Group, Inc. that it determined that it was in default under numerous provisions under the First Amended Credit Agreement dated as of July 31, 2015, among the Company's subsidiary American Shale Development, Inc., a Delaware corporation, the lenders party thereto from time to time, and Morgan Stanley Capital Group Inc., as administrative agent for those Lenders. According to Trans Energy, these defaults currently exist under the Credit Agreement: 1. The Borrower has failed to maintain the Asset Coverage Ratio as set forth in Section 6.21 of the Credit Agreement since Sept. 30, 2015; 2. The Borrower has failed to timely provide the materials required pursuant to Sections 5.06 (r), (u), and (v) for the months ended Dec. 31, 2015, Jan. 31, 2016, Feb. 29, 2016, and March 31, 2016; 3. The Borrower has failed to timely effect the Tug Hill Disposition in accordance with Section 5.19; 4. The Borrower has failed to timely engage a financial advisor reasonably acceptable to Administrative Agent and to commence the related refinancing activities in accordance with Section 5.20; 5. The Borrower has failed to timely provide the annual financial statements pursuant to Section 5.06 (a) for the year ended Dec. 31, 2015; 6. The Borrower has failed to timely provide the Reserve Report pursuant to Section 5.06 (d) for the year ended Dec. 31, 2015; 7. The Borrower has failed to timely provide the Quarterly Report on Hedging pursuant to Section 5.06 (g) for the quarter ended Sept. 30, 2015. The Company said that if these defaults under the Credit Agreement are not waived or otherwise resolved within the cure periods provided, the Administrative Agent will have the right to accelerate all of the outstanding indebtedness under the Credit Facility. If the Administrative Agent were to accelerate all of the obligations outstanding under the Credit Facility, the Company estimates that it would be required to pay approximately $123 million to the Administrative Agent and the Lenders. "We are currently in discussions with the Administrative Agent and the Lenders regarding a potential restructuring of the obligations outstanding under the Credit Agreement. While we hope to close the restructuring as soon as possible, definitive documentation is subject to negotiation. Additionally, we can provide no assurances that we will be able to successfully finalize such a restructuring, that the terms of any such restructuring will be acceptable to us or the timing or closing of such a restructuring," the Company stated in the filing. About Trans Energy St. Mary's, West Virginia-based Trans Energy, Inc. (OTC BB: TENG) -- http://www.transenergyinc.com/-- is an independent energy company engaged in the acquisition, exploration, development, exploitation and production of oil and natural gas. Its operations are presently focused in the State of West Virginia. Trans Energy reported a net loss of $12.5 million on $27.2 million of total operating revenues for the year ended Dec. 31, 2014, compared with a net loss of $17.7 million on $18.4 million of total operating revenues for the year ended Dec. 31, 2013. As of Sept. 30, 2015, the Company had $101 million in total assets, $129 million in total liabilities, and a $28 million total stockholders' deficit. TRANSGENOMIC INC: Incurs $3.28 Million Net Loss in First Quarter ---------------------------------------------------------------- Transgenomic, Inc., filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss available to common stockholders of $3.28 million on $236,000 of net sales for the three months ended March 31, 2016, compared to a net loss available to common stockholders of $3.37 million on $750,000 of net sales for the same period in 2015. As of March 31, 2016, Transgenomic had $3.59 million in total assets, $19 million in total liabilities and a total stockholders' deficit of $15.41 million. The Company has incurred substantial operating losses and has used cash in its operating activities for the past several years. As of March 31, 2016, the Company had negative working capital of $15.2 million. A full-text copy of the Form 10-Q is available for free at: https://is.gd/aZn9VG 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 $34.3 million on $1.65 million of net sales for the year ended Dec. 31, 2015, compared to a net loss available to common stockholders of $15.08 million on $1.24 million of net sales for the year ended Dec. 31, 2014. Ernst & Young LLP, in Hartford, Connecticut, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2015, citing that the Company has recurring losses from operations that raise substantial doubt about its ability to continue as a going concern. TRAVIS Z KIRKLAND: Selling Dental Practice for $235,000 ------------------------------------------------------- Dr. Travis Z. Kirkland, DDS PLLC, on May 23, 2016, filed with the U.S. Bankruptcy Court for the Western District of Washington a motion to sell its dental practice to Jeffrey T. Jacob & Nathan C. Holt DMD PC for $235,000. The Debtor through its manager and its attorneys has negotiated the sale of the practice to Jeffrey T. Jacob & Nathan C. Holt DMD PC, an entity owned by Dr. Jeffrey T. Jacob and Dr. Nathan C. Holt, both licensed to practice dentistry. Dr. Holt is currently associated with the dental practice of the Debtor and has been since approximately June of 2015. In conjunction with the purchase of the practice, an entity owned by Dr. Jacob and Dr. Holt will take title to the building from Seven Day Properties LLC pursuant to an agreement with the noteholder to accept less than the full amount owed. The related transaction, while intrinsically related to the sale of the practice, is not subject to these proceeding and does not require Court approval. An agreement for the sale of the building to the related entity has been signed, contingent upon to the Court's approval of the motion to sell the dental practice. The note on the building is currently in default. The noteholder, the original owner of the practice and the building, has not pursued foreclosure pending the successful completion of this transaction. However, according to the Debtor, if this transaction were to fail it is likely that the deed of trust on the building will be foreclosed, terminating the practice at the current location and rendering its purchase by a new buyer unlikely. The Debtor recounts that this is the second purchase that the Debtors have attempted to negotiate at essentially the same purchase price. The first negotiation failed after considerable time and effort. The Debtor believes that the present offer is reasonable and that the likelihood of obtaining a superior offer is low within the time constraints of a Chapter 11 now entering its eighth month. A business valuation by Sound Business Brokers, Inc. in January estimated the value of the property at $338,945. Since then Debtor has determined that certain tax liabilities and other costs reduced the value of the purchase by $40,000. The Debtor believes based on the valuation and the extensive negotiations to date that obtaining a better offer is unlikely. Further, the note on the building is currently in default, and if this purchase agreement were to fail there a prospect of immediate foreclosure of the note secured against the building. No real estate brokers are involved, reducing the costs of sale and increasing the overall proceeds to Columbia Bank. The Buyer has preliminary approval for a Small Business Administration loan for both the practice and the building. The final underwriting of the loan could take up to 45 days following Court approval of the sale. The closing is projected to place no later than Aug. 1, 2016. The sales price for the assets of the Debtor is $235,000. From that amount, the Debtor will pay: (a) all costs of sale, including, any sales or use taxes arising from the sale; (b) costs of notification of patients of the sale of the practice; (c) all administrative expenses in this case, including the United States Trustee's fee through the third quarter, all attorneys' fees through the date of sale, and any miscellaneous expenses incurred as a result of the sale. The remaining amount will be distributed to Columbia Bank as the sole secured creditor. The Debtor will pay all ongoing expenses including salaries and benefits, utilities and ongoing business expenses through closing out of current income. The estimated costs of sale and administrative expenses to be deducted from the sale proceeds, and the estimated amount to be distributed to Columbia Bank are: Sale Price: $235,000 Deductions from Sale Price: Washington Sales tax on capital equipment: $7,050 Attorneys' fees (est'd): $25,000 UST fees through September 30th (est'd): $4,875 Patient notification letters and postage: $1,500 Contingency reserve: $10,000 -------- Net proceeds available to be distributed to secured creditor: $186,575 The proceeds of sale available to Columbia Bank are an estimate only, subject to change based on the final UST fee, costs of closing and final attorneys' fees. The proceeds will be adjusted upon payment of those expenses. No other distribution is anticipated. The Debtor does not intend to propose a plan of reorganization, because there are no other assets. Upon sale of the practice and distribution of all proceeds pursuant to this order, and final winding up after closing, the Chapter 11 case will be dismissed. Columbia Bank stands to benefit from the sale in that the anticipated liquidation value of the assets of the estate is no more than $75,000. The sale proceeds will easily exceed that amount. There are no other secured creditors, and Columbia Bank will receive all proceeds of the sale. The Debtor anticipates that Columbia Bank will not object to the sale based on its prior communications with its counsel. The Debtor intends to obtain the consent of Columbia to this sale prior to the closing. About Dr. Travis Z. Kirkland, DDS PLLC Dr. Travis Z. Kirkland, DDS PLLC, owns assets consisting of a dental practice located at 16008 Meridian Ave. East, Puyallup WA. Dr. Travis Z. Kirkland is the Manager of Debtor and purchased the practice in approximately December of 2012. The practice was financed through a loan with Columbia Bank secured against the practice, its equipment, receivables, and other personal property. In conjunction with the purchase of the practice Dr. Kirkland, through an entity called Seven Day Properties, LLC, which he owns together with his wife, purchased the building in which the practice operates by means of a loan secured by a deed of trust against the property. The practice pays rent to the LLC and the LLC pays the monthly loan payments to the noteholder. Unfortunately the practice did not produce the anticipated revenue and fell behind in payments to Columbia Bank as well as on rental payments to Seven Day Properties. Travis Z Kirkland, DDS PLLC, doing business as Any Day Dental, sought Chapter 11 protection (Bankr. W.D. Wash. Case No. 15-44780) on Oct. 14, 2015, in Tacoma, Washington. The Chapter 11 filing was precipitated by an imminent execution sale by Columbia Bank of the assets that represent the collateral for its loan. The Hon. Paul B. Snyder is the case judge. The Debtor estimated assets of $50,000 to $100,000 and debt of $1 million to $10 million. The Debtor's attorneys: S Lamont Bossard, Jr., Esq. IWAMA LAW FIRM 333 5th Ave S Kent, WA 98032 Tel: 253-520-7671 E-mail: monty@iwamalaw.com - and - Mark C McClure, Esq. LAW OFFICE OF MARK MCCLURE PS 1103 W Meeker St Ste 101 Kent, WA 98032 Tel: 253-631-6484 E-mail: mark@northwestbk.com TRI POINTE: Moody's Assigns B1 Rating on Proposed $300MM Notes -------------------------------------------------------------- Moody's Investors Service assigned a B1 rating to the proposed $300 million of senior unsecured notes due 2021 of TRI Pointe Homes, Inc., a subsidiary of TRI Pointe Group, Inc., proceeds of which will be used to repay indebtedness under its unsecured revolving credit facility and for general corporate purposes. In the same rating action, Moody's affirmed all of TRI Pointe's existing ratings, including its B1 Corporate Family Rating, B1-PD Probability of Default, and B1 on its other senior unsecured notes. The Speculative Grade Liquidity Rating was raised to SGL-2 from SGL-3, and the outlook was raised to positive. Issuer: TRI Pointe Homes, Inc, a subsidiary of TRI Pointe Group, Inc. Assignments: Senior Unsecured Regular Bond/Debenture, Assigned B1(LGD4) Affirmations: Senior Unsecured Regular Bond/Debenture, Affirmed B1(LGD4) Probability of Default Rating, Affirmed B1-PD Corporate Family Rating, Affirmed B1 Senior Unsecured Regular Bond/Debenture, Affirmed B1(LGD4) Raised: Speculative Grade Liquidity Rating , Raised to SGL-2 from SGL-3 Outlook Actions: Outlook, Raised to Positive RATINGS RATIONALE The B1 Corporate Family Rating reflects the solid performance TRI Pointe has demonstrated in recent years, resulting in credit metrics that are strong for its rating category. Its debt leverage, interest coverage and gross margins, three of the most important metrics we consider, map to Ba levels in the homebuilding rating methodology, and we expect these metrics will continue to remain strong. In addition, the rating considers the large increase in size, scale, market presence, and geographical footprint that TRI Pointe has experienced as a result of its 2014 acquisition of the Weyerhaeuser Real Estate Company ("WRECO"). At the same time, the rating incorporates the integration challenges that may continue to arise from a relatively small and new company's combining with a much larger and longer-established entity. WRECO is now being managed by a pure homebuilder (TRI Pointe) rather than by a timber REIT (Weyerhaeuser), and it is possible that the shift in culture could add to integration difficulties. In addition, while this note issuance improves TRI Pointe's liquidity by freeing up its revolver, we expect the company's cash flow to be negative in 2016 and 2017, owing to its aggressive land acquisition plans. The company also has a relatively long land supply (approximately seven years), and despite its increased size and scale, remains heavily concentrated in California, both of which could hurt in any future downturn. TRI Pointe's SGL 2 rating reflects the company's good liquidity profile. Pro forma for this transaction, TRI Pointe will have about $165 million of unrestricted cash and equivalents and $520 million of availability under its $625 million unsecured revolver maturing in 2019. Moody's expects the company's cash flow will be negative in 2016 and 2017, which could result in some additional drawings from the credit facility. The revolver has several financial covenants, including a 55% maximum net debt-to-capitalization ratio and a 1.5x minimum interest coverage ratio. As of December 31, 2015, the company had ample cushion under all covenants, which we expect to continue for the next 12 months. The positive rating outlook is based on our expectation of the company's continued strong financial performance, moderate debt leverage, and good liquidity. An upgrade might be considered in the if TRI Pointe continues its strong performance and convinces us that it has seamlessly integrated the WRECO entities while maintaining a prudent debt leverage comfortably below 50% and improving liquidity. A downgrade could occur if the combined company's liquidity profile deteriorates or if adjusted debt leverage rises above 55%, EBIT interest coverage falls below 2.5x, and/or gross margins decline to below 18%. The principal methodology used in these ratings was Homebuilding And Property Development Industry published in April 2015. TRI Pointe was founded in 2009 and is headquartered in Irvine, California. It designs, builds and sells single-family homes. The company completed its IPO in January 2013 and consummated its merger with Weyerhaeuser Real Estate Company, a subsidiary of Weyerhaeuser Company, in July 2014. Through this merger, TRI Pointe now operates in Arizona, California, Nevada, Washington, Texas, Maryland, Colorado and Virginia through its portfolio of six brands. For the full year 2015, TRI Pointe's revenue and net income were approximately $2.4 billion and $205 million, respectively. TRIPLE C FLATBED: Case Summary & 20 Largest Unsecured Creditors --------------------------------------------------------------- Debtor: Triple C Flatbed Holdings, LLC 420 Bill Kennedy Way Atlanta, GA 30316 Case No.: 16-58984 Chapter 11 Petition Date: May 24, 2016 Court: United States Bankruptcy Court Northern District of Georgia (Atlanta) Debtor's Counsel: Michael D. Robl, Esq. THE SPEARS & ROBL LAW FIRM, LLC Suite 250 3754 LaVista Road Tucker, GA 30084 Tel: 404-373-5153 Fax: 404-537-1761 E-mail: mdrobl@tsrlaw.com michael@roblgroup.com Total Assets: $2.28 million Total Liabilities: $2.72 million The petition was signed by Terry Comer, managing member. A list of the Debtor's 20 largest unsecured creditors is available for free at http://bankrupt.com/misc/ganb16-58984.pdf TWIN RINKS: Seeks Final Decree Closing Chapter 11 Case ------------------------------------------------------ Twin Rinks at Eisenhower, LLC asks the U.S. Bankruptcy Court for the Eastern District of New York, to enter a final decree closing its Chapter 11 case. The Debtor filed a voluntary petition for reorganization under and pursuant to the Bankruptcy Court on June 8, 2015. The Debtor's Second Amended Plan of Reorganization was duly confirmed pursuant to an order of the Court on December 1, 2015. The Debtor has complied with the Plan and the Confirmation Order, and all the matters required to be done by the Confirmation Order, including the initial payments to creditors under the Plan, have been completed. The Debtor is represented by: Harold D. Jones, Esq. JONES & SCHWARTZ, P.C. One Old Country Road, Suite 384 Carle Place, NY 11514 Tel: (516) 887-8700 About Twin Rinks Twin Rinks At Eisenhower, LLC, an East Meadow, New York-based ice skating rink operator and entertainment business, sought Chapter 11 bankruptcy protection (Bankr. E.D.N.Y. Case No. 15 72466) on June 8, 2015, with plans to sell its business and its assets as a going concern. The Debtor disclosed $52.4 million in assets and $55.2 million in debt as of May 25, 2015. The Debtor tapped Jones & Schwartz, P.C., as counsel, and Greenspan Associates, CPAs, as accountants. ULTRA PETROLEUM: New Directors Elected; E&Y Okayed as Auditor ------------------------------------------------------------- Ultra Petroleum Corp. said in a regulatory filing with the Securities and Exchange Commission that the Annual and Special Meeting of Shareholders was held in Houston, Texas on May 19, 2016. Among others, these nominees for director of the Company were elected: -- MICHAEL D. WATFORD -- W. CHARLES HELTON -- STEPHEN J. MCDANIEL -- ROGER A. BROWN -- MICHAEL J. KEEFFE The appointment of Ernst & Young LLP to serve as the Company's independent auditor for the fiscal year ending December 31, 2016 was approved. The non-binding advisory vote regarding the Company’s executive compensation was presented. A copy of the Company's SEC report is available at http://goo.gl/pwGSux About Ultra Petroleum Ultra Petroleum Corp. is an independent oil and gas company engaged in the development, production, operation, exploration and acquisition of oil and natural gas properties. Ultra Petroleum Corp. and its affiliates filed separate Chapter 11 petitions (Bankr. S.D. Tex. Case Nos. 16-32202 to 16-32209) on April 29, 2016. The Hon. Marvin Isgur presides over the cases. James H.M. Sprayregen, P.C., David R. Seligman, P.C., Michael B. Slade, Esq., Christopher T. Greco, Esq., and Gregory F. Pesce, Esq., at KIRKLAND & ELLIS LLP; and Patricia B. Tomasco, Esq., Matthew D. Cavenaugh, Esq., and Jennifer F. Wertz, Esq., at JACKSON WALKER, L.L.P., serve as counsel to the Debtors. Rothschild Inc. serves as the Debtors' investment banker; Petrie Partners serves as their investment banker; and Epiq Bankruptcy Solutions, LLC, serves as claims and noticing agent. Ultra Petroleum Corp. listed total assets of $1.28 billion and total liabilities of $3.91 billion as of March 31, 2016. The petitions were signed by Garland R. Shaw, chief financial officer. The Office of the U.S. Trustee has appointed seven creditors of Ultra Petroleum Corp. to serve on the official committee of unsecured creditors. ULTRA PETROLEUM: NYSE to Delist Shares Effective May 31 ------------------------------------------------------- New York Stock Exchange LLC notifies the Securities and Exchange Commission of its intention to remove the entire class of Common Stock of Ultra Petroleum Corp. from listing and registration on the Exchange at the opening of business on May 31, 2016, pursuant to the provisions of Rule 12d2-2(b) because, in the opinion of the Exchange, the Common Stock is no longer suitable for continued listing and trading on the Exchange. The Exchange reached its decision pursuant to Section 802.01D of the Listed Company Manual based on the Company's April 29, 2016 announcement that it and certain of its subsidiaries have voluntarily filed petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of Texas. 1. Section 802.01D of the Manual states that the Exchange would normally give consideration to suspending or removing from the list a security of a company when 'an intent to file under any of the sections of the bankruptcy law has been announced or a filing has been made or liquidation has been authorized and the company is committed to proceed.' 2. Based on the Company's April 29, 2016 announcement mentioned above, on May 2, 2016, the Exchange determined that the Common Stock of the Company should be suspended immediately from trading prior to the open, and directed the preparation and filing with the SEC of this application for the removal of the Common Stock from listing and registration on the Exchange. The Company was notified by letter on May 2, 2016. 3. Pursuant to the above authorization, a press release was issued on May 2, 2016 and an announcement was made on the 'ticker' of the Exchange at the opening of the trading session stating the suspension of trading in the Common Stock. Similar information was included on the Exchange's website. 4. The Company had a right to appeal to the Committee for Review of the Board of Directors of NYSE Regulation the determination to delist its Common Stock, provided that it filed a written request for such a review with the Secretary of the Exchange within ten business days of receiving notice of delisting determination. The Company did not file such request within the specified time period. Consequently, all conditions precedent under SEC Rule 12d2-2(b) to the filing of this application have been satisfied. On April 29, Ultra Petroleum and certain of its subsidiaries, including Keystone Gas Gathering, LLC, Ultra Resources, Inc., Ultra Wyoming, Inc., Ultra Wyoming LGS, LLC, UP Energy Corporation, UPL Pinedale, LLC, and UPL Three Rivers Holdings, LLC, filed separate Chapter 11 petitions for reorganization in the United States Bankruptcy Court for the Southern District of Texas. Ultra said in a regulatory filing with the Securities and Exchange Commission that the filing of the Bankruptcy Petitions constitutes an event of default that accelerated the Company's obligations under these debt instruments: * The Company's 5.750% Senior Notes due December 2018, issued pursuant to the indenture, dated December 12, 2013, between the Company and U.S. Bank National Association, as trustee; * The Company's 6.125% Senior Notes due October 2024 issued pursuant to the indenture, dated September 18, 2014, between the Company and U.S. Bank National Association, as trustee; * The Credit Agreement, dated as of October 6, 2011, among Ultra Resources, Inc., JPMorgan Chase Bank, N.A. as administrative agent, and the lenders party thereto, as amended; and * Ultra Resources' 5.92% Senior Notes, Series 2008-B, due March 2018; 7.31% Senior Notes, Series 2009-A, due March 2016; 7.77% Senior Notes, Series 2009-B, due March 2019; 4.98% Senior Notes, Series 2010-A, due January 2017; 5.50% Senior Notes, Series 2010-B, due January 2020; 5.60% Senior Notes, Series 2010-C, due January 2022; 5.85% Senior Notes, Series 2010-D, due January 2025; 4.51% Senior Notes, 2010 Series E, due October 2020; 4.66% Senior Notes, 2010 Series F, due October 2022; 4.91% Senior Notes, 2010 Series G, due October 2025, issued pursuant to the Master Note Purchase Agreement, dated March 6, 2008, as supplemented. The Debt Instruments provide that as a result of the Bankruptcy Petitions the principal and interest due thereunder shall be immediately due and payable. Any efforts to enforce such payment obligations under the Debt Instruments are automatically stayed as a result of the Bankruptcy Petitions, and the creditors' rights of enforcement in respect of the Debt Instruments are subject to the applicable provisions of the Bankruptcy Code. About Ultra Petroleum Ultra Petroleum Corp. is an independent oil and gas company engaged in the development, production, operation, exploration and acquisition of oil and natural gas properties. Ultra Petroleum Corp. and its affiliates filed separate Chapter 11 petitions (Bankr. S.D. Tex. Case Nos. 16-32202 to 16-32209) on April 29, 2016. The Hon. Marvin Isgur presides over the cases. James H.M. Sprayregen, P.C., David R. Seligman, P.C., Michael B. Slade, Esq., Christopher T. Greco, Esq., and Gregory F. Pesce, Esq., at KIRKLAND & ELLIS LLP; and Patricia B. Tomasco, Esq., Matthew D. Cavenaugh, Esq., and Jennifer F. Wertz, Esq., at JACKSON WALKER, L.L.P., serve as counsel to the Debtors. Rothschild Inc. serves as the Debtors' investment banker; Petrie Partners serves as their investment banker; and Epiq Bankruptcy Solutions, LLC, serves as claims and noticing agent. Ultra Petroleum Corp. listed total assets of $1.28 billion and total liabilities of $3.91 billion as of March 31, 2016. The petitions were signed by Garland R. Shaw, chief financial officer. The Office of the U.S. Trustee has appointed seven creditors of Ultra Petroleum Corp. to serve on the official committee of unsecured creditors. ULTRA PETROLEUM: Warlander Owns 11% of Common Shares ---------------------------------------------------- Warlander Asset Management, LP, and Eric Cole, its managing member, disclosed in regulatory filing with the Securities and Exchange Commission earlier this month that they may be deemed to beneficially own in the aggregate 17,000,000 Common Shares -- or roughly 11.08% -- of Ultra Petroleum Corp. Warlander may be reached at: Eric Cole Warlander Management GP, LLC 250 West 55th Street, 33rd Floor New York, NY 10019 About Ultra Petroleum Ultra Petroleum Corp. is an independent oil and gas company engaged in the development, production, operation, exploration and acquisition of oil and natural gas properties. Ultra Petroleum Corp. and its affiliates filed separate Chapter 11 petitions (Bankr. S.D. Tex. Case Nos. 16-32202 to 16-32209) on April 29, 2016. The Hon. Marvin Isgur presides over the cases. James H.M. Sprayregen, P.C., David R. Seligman, P.C., Michael B. Slade, Esq., Christopher T. Greco, Esq., and Gregory F. Pesce, Esq., at KIRKLAND & ELLIS LLP; and Patricia B. Tomasco, Esq., Matthew D. Cavenaugh, Esq., and Jennifer F. Wertz, Esq., at JACKSON WALKER, L.L.P., serve as counsel to the Debtors. Rothschild Inc. serves as the Debtors' investment banker; Petrie Partners serves as their investment banker; and Epiq Bankruptcy Solutions, LLC, serves as claims and noticing agent. Ultra Petroleum Corp. listed total assets of $1.28 billion and total liabilities of $3.91 billion as of March 31, 2016. The petitions were signed by Garland R. Shaw, chief financial officer. The Office of the U.S. Trustee has appointed seven creditors of Ultra Petroleum Corp. to serve on the official committee of unsecured creditors. VALEANT PHARMACEUTICALS: Brian Stolz Quits as SVP Neurology ----------------------------------------------------------- Brian M. Stolz tendered his resignation as the senior vice president Neurology, Dentistry and Generics of Valeant Pharmaceuticals International, Inc. to pursue other opportunities, with such resignation to be effective on May 30, 2016, as disclosed in a regulatory filing with the Securities and Exchange Commission. About Valeant Valeant Pharmaceuticals International, Inc. (NYSE/TSX:VRX) -- http://www.valeant.com/-- is a multinational specialty pharmaceutical company that develops, manufactures and markets a broad range of pharmaceutical products primarily in the areas of dermatology, gastrointestinal disorder, eye health, neurology and branded generics. Valeant reported a net loss attributable to the Company of $291.7 million on $10.44 billion of revenues for the year ended Dec. 31, 2015, compared to net income attributable to the Company of $880.7 million on $8.20 billion of revenues for the year ended Dec. 31, 2014. As of Dec. 31, 2015, Valeant had $48.96 billion in total assets, $42.93 billion in total liabilities and $6.02 billion in total equity. * * * Valeant carries a 'B2' Corporate Family Rating from Moody's Investors Service. As reported by the TCR on April 19, 2016, Standard & Poor's Ratings Services said that it has lowered its corporate credit ratings on Valeant Pharmaceuticals International Inc. to 'B' from 'B+' and placed both the corporate credit rating and the issue-level ratings on CreditWatch with developing implications. VALEANT PHARMACEUTICALS: Gets Notice of Default from Bondholders ---------------------------------------------------------------- Valeant Pharmaceuticals International, Inc., announced that it has received a notice of default from the trustee under one of its senior note indentures as a result of the delay in the filing of its Form 10-Q for the period ended March 31, 2016. The notice of default does not result in the acceleration of any of Valeant's indebtedness. Under its senior note indenture, Valeant has 60 days from the receipt of the notice to file the Form 10-Q, which will cure the default in all respects. As announced on May 9, 2016, Valeant expects to file the Form 10-Q with the Securities and Exchange Commission and the Canadian Securities Regulators on or before June 10, 2016, which would be well in advance of the 60-day cure date of July 18, 2016. About Valeant Valeant Pharmaceuticals International, Inc. (NYSE/TSX:VRX) -- http://www.valeant.com/-- is a multinational specialty pharmaceutical company that develops, manufactures and markets a broad range of pharmaceutical products primarily in the areas of dermatology, gastrointestinal disorder, eye health, neurology and branded generics. Valeant reported a net loss attributable to the Company of $291.7 million on $10.44 billion of revenues for the year ended Dec. 31, 2015, compared to net income attributable to the Company of $880.7 million on $8.20 billion of revenues for the year ended Dec. 31, 2014. As of Dec. 31, 2015, Valeant had $48.96 billion in total assets, $42.93 billion in total liabilities and $6.02 billion in total equity. * * * Valeant carries a B2 Corporate Family Rating from Moody's Investors Service. As reported by the TCR on April 19, 2016, Standard & Poor's Ratings Services said that it has lowered its corporate credit ratings on Valeant Pharmaceuticals International Inc. to 'B' from 'B+' and placed both the corporate credit rating and the issue-level ratings on CreditWatch with developing implications. VANGUARD HEALTHCARE: Files List of Largest Unsecured Creditors -------------------------------------------------------------- Vanguard Healthcare, LLC, filed with the U.S. Bankruptcy Court for the Middle District of Tennessee a list of creditors holding the largest unsecured claims against the company. The list shows BHC-LTC Insurance Ltd., a company based in Cayman Islands, as the largest unsecured creditor, followed by North Carolina-based Evergreen Rehabilitation Center. BHC-LTC Insurance holds a $2.73 million unsecured claim while Evergreen holds a $1.7 million unsecured claim, according to the court filing. A copy of the unsecured creditors' list is available without charge at https://is.gd/2f6sj2 About Vanguard Healthcare Vanguard is a long-term care provider headquartered in Brentwood, Tennessee, providing rehabilitation and skilled nursing services at 14 facilities in four states (Florida, Mississippi, Tennessee and West Virginia). Vanguard Healthcare, LLC and 17 of its subsidiaries each filed a Chapter 11 bankruptcy petition (Bankr. M.D Tenn. Proposed Lead Case No. 16-03296) on May 6, 2016. The petitions were signed by William D. Orand as chief executive officer. The Debtors estimated asets in the range of $100 million to $500 million and liabilities of up to $100 million. The Debtors have hired Bradley Arant Boult Cummings LLP as counsel and BMC Group as noticing agent. Judge Randal S. Mashburn has been assigned the cases. VANGUARD HEALTHCARE: U.S. Trustee Forms 7-Member Committee ---------------------------------------------------------- The U.S. trustee for Region 8 on May 24 appointed seven creditors of Vanguard Healthcare, LLC, to serve on the official committee of unsecured creditors. The committee members are: (1) Kindred Nursing Centers East, L.L.C. c/o Patricia McGillan 680 So. Fourth Street Louisville, KY 40206 Tel: (502) 596-7300 mailto:patricia.mcgillan@kindred.com (2) Medline Industries, Inc. c/o Shane Reed 1 Medline Place Mundelein, IL 60060 Tel: (847) 643-4232 Fax: (847) 643-4966 mailto:SReed@medline.com (3) Healthcare Services Group, Inc. c/o Patrick J. Orr Vice President - Financial Services 3220 Tillman Drive Bensalem, PA 18940 Tel: (215) 639-4274 Fax: (215) 688-4361 mailto:porr@hcsgcorp.com (4) Kirk F. Hebert P.O. Box 2609 Brentwood, TN 37024-2609 Tel: (615) 364-5213 mailto:Hebert.Kirk@gmail.com (5) Signature Healthcare, LLC, et al. 12201 Bluegrass Parkway Louisville, KY 40299 Tel: (502) 568-7800 Fax: (502) 568-7160 mailto:qbunton@signaturehealthcarellc.com (6) Express Courier c/o Melanie S. Kerns VP Controller, Express Courier, Inc. 238 Bedford Way Franklin, TN 37064 Tel: (615) 720-5146 mailto:melanie.kerns@expressdelivers.net (7) Rezult Group, Inc. c/o John Carrico, CEO 750 Old Hickory Blvd., Suite I-260 Brentwood, TN 37027 Tel: (615) 250-3362 Fax: (615) 367-1548 mailto:jcarrico@rezultgroup.com Official creditors' committees have the right to employ legal and accounting professionals and financial advisors, at a debtor's expense. They may investigate the debtor's business and financial affairs. Importantly, official committees serve as fiduciaries to the general population of creditors they represent. About Vanguard Healthcare Vanguard is a long-term care provider headquartered in Brentwood, Tennessee, providing rehabilitation and skilled nursing services at 14 facilities in four states (Florida, Mississippi, Tennessee and West Virginia). Vanguard Healthcare, LLC and 17 of its subsidiaries each filed a Chapter 11 bankruptcy petition (Bankr. M.D Tenn. Proposed Lead Case No. 16-03296) on May 6, 2016. The petitions were signed by William D. Orand as chief executive officer. The Debtors estimated asets in the range of $100 million to $500 million and liabilities of up to $100 million. The Debtors have hired Bradley Arant Boult Cummings LLP as counsel and BMC Group as noticing agent. Judge Randal S. Mashburn has been assigned the cases. VERITAS BERMUDA: S&P Assigns 'B' CCR, Outlook Stable ---------------------------------------------------- S&P Global Ratings said it assigned its 'B' corporate credit rating to Mountain View, Calif.-based Veritas Bermuda Ltd. The rating outlook is stable. At the same time, S&P assigned its 'B+' issue-level rating and '2' recovery rating to Veritas' approximately $2.9 billion first-lien credit facilities, which consist of a $250 million five-year revolving credit facility, a $2.1 billion seven-year term loan B, and EUR497 million seven-year term loan B. The '2' recovery rating indicates S&P's expectations for substantial recovery (70%-90%; lower half of the range) of principal in the event of a payment default. S&P also assigned its 'B+' issue-level rating and '2' recovery rating to the company's $441 million first-lien notes and EUR262 million first-lien notes. The '2' recovery rating indicates S&P's expectations for substantial recovery (70%-90%; lower half of the range) of principal in the event of a payment default. In addition, S&P assigned its 'CCC+' issue-level rating and '6' recovery rating to Veritas' $400 million seven–year last-out first-lien term loan B-2 and $825 million eight-year senior unsecured notes. The '6' recovery rating indicates S&P's expectations for negligible recovery (0%-10%) of principal in the event of a payment default. "Our 'B' corporate credit rating on Veritas reflects the firm's high leverage, the potential for further sales disruption as the company transitions to a direct rather than channel-based sales strategy, and limited product diversity," said S&P Global Ratings credit analyst James Thomas. S&P views Veritas' significant recurring maintenance revenue base and its leading market share in several product categories as key credit strengths. The stable outlook reflects S&P's expectation that Veritas will be able to generate annual free cash flow of $150 million to $175 million and reduce leverage to the low-7x area by the end of fiscal 2017 from significant recurring maintenance revenue base, high customer switching costs, and more efficient cost structure after its separation from Symantec. VISCOUNT SYSTEMS: Incurs C$142,000 Net Loss in First Quarter ------------------------------------------------------------ Viscount Systems, Inc., filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss attributable to common stockholders of C$142,000 on C$982,000 of sales for the three months ended March 31, 2016, compared to net income attributable to common stockholders of C$121,157 on C$1.05 million of sales for the same period in 2015. As of March 31, 2016, Viscount Systems had C$1.37 million in total assets, C$10.03 million in total liabilities and a total stockholders' deficit of C$8.65 million. The Company had cash of $51,796 as of March 31, 2016, and negative working capital of $8,840,286 as of March 31, 2016. The large amount of negative working capital is mainly due to the notes liability, the derivative notes liability and accrued PIK interest payable on the Series A and B Demand Notes liabilities. The Company had an accumulated deficit of $16,398,136 as of March 31, 2016, and reported an operating loss for the three months ended March 31, 2016 of $555,977. Net cash used in operating activities for the three months ended March 31, 2016, was $184,910. The Company said it is subject to significant liquidity risk. A full-text copy of the Form 10-Q is available for free at: https://is.gd/c4KyoN About Viscount Systems Burnaby, Canada-based Viscount Systems, Inc., is a manufacturer, developer and service provider of access control security products. Viscount reported a net loss attributable to common stockholders of C$6.33 million on C$6.13 million of sales for the year ended Dec. 31, 2015, compared to a net loss of attributable to common stockholders of C$990,681 on C$4.76 million of sales for the year ended Dec. 31, 2014. 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, 2015, 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, the auditors noted. W3 CO: Moody's Lowers CFR to Caa3, Outlook Remains Negative ----------------------------------------------------------- Moody's Investors Service downgraded the Corporate Family Rating of W3 Co., a holding company of Total Safety U.S. Inc., to Caa3 from Caa1. The Probability of Default Rating (PDR) was downgraded to Caa3-PD from Caa1-PD, the first lien revolver and term loan to Caa2 from B3 and the second lien term loan to Ca from Caa3. The rating outlook remains negative. The downgrade reflects Moody's expectation of further deterioration in Total Safety's operating and financial performance driven by intense pricing pressure and weakening activity levels, notably in its upstream business. With minimal unrestricted cash available, the company's highly drawn revolver will leave a limited amount of flexibility to handle seasonal peaks in draws and cover all of its debt service. While its downstream business is holding up, its upstream exposure will continue to decline throughout 2016. Ratings downgraded: Corporate Family Rating to Caa3 from Caa1; Probability of Default Rating to Caa3-PD from Caa1-PD; Senior Secured 1st Lien Revolving Credit Facility due 2018 to Caa2 (LGD3) from B3 (LGD3); Senior Secured 1st Lien Term Loan due 2020 to Caa2 (LGD3) from B3(LGD3); Senior Secured 2nd Lien Term Loan due 2020 to Ca (LGD5) from Caa3(LGD5); Outlook Actions: Outlook, Affirmed Negative RATINGS RATIONALE The Caa3 Corporate Family Rating reflects Total Safety's constrained liquidity position, expectations of very high leverage above 9 times, and continued deterioration in its upstream business. The company's highly drawn revolver leaves limited availability to cover debt service and day to day operations, raising concerns of potential debt restructurings. Moody's believes 2016 will be a challenging operating year, pressured by customer-demanded price concessions, weak upstream activity, and potential delays in downstream projects. Total Safety's weak liquidity profile reflects Moody's expectations of minimal unrestricted cash balances and limited access to its revolver throughout 2016. While underlying cash flows have some seasonality, Moody's believes free cash flow will be negative in 2016 unless the company can materially monetize accounts receivables to more than offset earnings declines and its capital expenditure needs. Total Safety's $60 million revolving credit facility is due in 2018. As of May 2016, the revolver had $47 million drawn, not including about $5.5 million in letters of credit. Moody's believes this leaves the company with minimal cushion to cover all of its day-to-day operations and debt service. Generally, revolver needs are highest leading into Summer and in the early Fall, in step with the refinery turnaround season. In addition, the company has quarterly cash interest payments that are also a draw on cash needs, making the remainder of the year a challenge. The credit agreement contains a quarterly springing senior secured 1st lien net leverage covenant, triggered when more than $15 million (25%) of the revolver capacity is outstanding. The covenant test at March 31, 2016 was 5.50 times and the company's actual leverage was at 5.05 times. The covenant test level steps down to 5.25 times at Sept. 30, 2016. Moody's believes covenant compliance will be difficult beyond the second half of 2016 unless the company can amend its credit agreement. The negative rating outlook incorporates Moody's concern that Total Safety's liquidity will be insufficient to meet its capital needs in 2016 unless it can meaningfully reduce revolver borrowings and amend financial covenants. The ratings could be downgraded if Total Safety pursues a debt restructuring or its liquidity further deteriorates. The ratings could be upgraded if liquidity improves such that the revolver is readily and amply available combined with EBITDA to interest expense sustained above 1.5 times. The principal methodology used in these ratings was Global Oilfield Services Industry Rating Methodology published in December 2014. W3 Co. is a holding company controlling Total Safety U.S., Inc. (collectively "Total Safety"), a global provider of industrial safety services and equipment primarily for upstream and downstream energy, petrochemical, and chemical end markets. Total Safety is owned by affiliates of private equity sponsor Warburg Pincus. For the twelve months ended March 31, 2016, the company reported revenues of $385 million. WEST CORP: Stockholders Elect Three Directors to Board ------------------------------------------------------ At the 2016 Annual Meeting of Stockholders of West Corporation held on May 17, 2016, the stockholders of the Company: (i) elected Laura A. Grattan, Paul R. Garcia and Gregory T. Sloma to serve as directors for a three-year term; (ii) ratified the appointment of Deloitte & Touche LLP as the Company's independent registered public accounting firm for the year ending Dec. 31, 2016; (iii) on an advisory basis, voted in favor of the compensation of the Company's named executive officers; and (iv) approved the amendment to the West Corporation 2013 Employee Stock Purchase Plan. About West Corporation Omaha, Neb.-based West Corporation is a global provider of communication and network infrastructure solutions. West helps manage or support essential enterprise communications with services that include conferencing and collaboration, public safety services, IP communications, interactive services such as automated notifications, large-scale agent services and telecom services. West Corporation reported net income of $242 million on $2.28 billion of revenue for the year ended Dec. 31, 2015, compared to net income of $158 million on $2.21 billion of revenue for the year ended Dec. 31, 2014. As of March 31, 2016, West Corp had $3.52 billion in total assets, $4.05 billion in total liabilities and a total stockholders' deficit of $536 million. * * * As reported by the TCR on June 21, 2013, Standard & Poor's Ratings Services raised its corporate credit rating on West Corp. to 'BB-' from 'B+'. The upgrade reflects Standard & Poor's view that lower debt leverage and a less aggressive financial policy will strengthen the company's financial profile. In the April 4, 2013, edition of the TCR, Moody's Investor Service upgraded West Corporation's Corporate Family Rating to 'B1' from 'B2'. "The CFR upgrade to B1 reflects West's shift to a more conservative capital structure and financial policies as a publicly owned company," stated Moody's analyst Suzanne Wingo. WILSON AVE: Wants 90-Day Extension of Exclusive Plan Filing Period ------------------------------------------------------------------ Wilson Ave Management Corp. asks the U.S. Bankruptcy Court for the Eastern District of New York to extend by 90 days the Debtor's exclusive periods to file a Chapter 11 plan and to solicit acceptances of the plan. A hearing on the request is set for July 7, 2016, at 2:30 p.m. (ET). The Debtor's initial 120-day period of exclusivity in which to file a Chapter 11 plan is set to expire on May 27, 2016, and the Debtors' additional 60-day period to solicit acceptances of the plan is set to expire on July 26, 2016. The Debtor says that the issues it is facing require a lot of time and attention to resolve. The Debtor needs more time to continue resolving its issues with its lender. In that regard, the Debtor has been making a good faith effort to resolve those issues, most notably with the mortgagee. The Debtor is current on all of its filing, has established a bar date and is vigorously prosecuting its Chapter 11 case. The Debtor believes that it has worked diligently over the past three months to foster negotiations in order to work out the remaining issues with the mortgagee. The Debtor's request for an extension of the Exclusive Periods is not a negotiation tactic, but instead, merely a reflection of the fact that this Chapter 11 case is not yet ripe for the formulation and confirmation of a viable plan. Accordingly, the Debtor submits that cause exists for the requested extensions and that the entry of the Proposed Order further increasing the Exclusive Periods is reasonable and in the best interest of the Debtor and its estate. Wilson Ave Management Corp. filed for Chapter 11 bankruptcy protection (Bankr. E.D.N.Y. Case No. 16-40341) on Jan. 28, 2016. The Debtor is represented by: VOGEL BACH & HORN, LLP Eric H. Horn, Esq. Heike M. Vogel, Esq. 1441 Broadway, 5th Floor New York, New York 10018 Tel: (212) 242-8350 Fax: (646) 607-2075 E-mail: ehorn@vogelbachpc.com hvogel@vogelbachpc.com WINDSOR FINANCIAL: Case Converted to Chapter 7 Liquidation ---------------------------------------------------------- A U.S. bankruptcy judge has ordered the conversion of Windsor Financial Group LLC's Chapter 11 case to a Chapter 7 liquidation. Judge Stuart Bernstein of the U.S. Bankruptcy Court for the Southern District of New York granted the motion of ASICS America Corp. to convert the company's bankruptcy case to a Chapter 7 proceeding. Judge Bernstein appointed Deborah Piazza, Esq., a New York-based bankruptcy lawyer, as interim trustee. If no one is elected, Ms. Piazza will serve as Chapter 7 trustee by operation of law. ASICS had asked for the conversion of the case last month, arguing it was filed in bad faith. In its motion, ASICS alleged that Windsor Financial only filed the case to halt a litigation involving both companies in a California district court. ASICS also cited as grounds for the dismissal the alleged gross mismanagement of Windsor Financial's finances and the continued diminution of the company's estate. About Windsor Financial Group Windsor Financial Group LLC owned and operated ASICS retail stores in the United States through a license agreement with ASICS America Corporation. It opened 13 ASICS retail stores -- including ASICS's North American flagship store in Times Square -- expanding ASICS's brand and presence in the United States. On June 24, 2015, ASICS terminated Windsor's retail operating agreement due to breach, including for failure to pay for merchandise it purchased for resale. On July 28, 2015, ASICS filed a complaint against Windsor in the California District Court, Civil Action No. 8:15-cv-01194-JVS-JVM, for injunctive relief and damages for the Debtor's breach of the MRA, trademark infringement and unfair competition. ASICS seeks damages of no less than $5,753,096. Windsor Financial Group filed a Chapter 11 bankruptcy petition (Bankr. S.D.N.Y. Case No. 16-10097) on Jan. 15, 2016, intending to use the chapter 11 process to sue ASICS for its misconduct and fraud in the hopes of using those litigation proceeds to provide a distribution to creditors and equity. Armando Ruiz, the CEO, signed the bankruptcy petition. The Debtor estimated both assets and liabilities in the range of $10 million to $50 million. Lowenstein Sandler LLP serves as the Debtor's counsel. ZEKELMAN INDUSTRIES: Moody's Affirms B3 CFR, Outlook Positive ------------------------------------------------------------- Moody's Investors Service changed Zekelman Industries, Inc.'s (formerly JMC Steel Group, Inc.) outlook to positive from negative. At the same time, Moody's affirmed Zekelman's B3 corporate family rating, B3-PD probability of default rating and the B2 rating on its senior secured term loan B. Moody's also assigned a B2 rating to the company's proposed $371 million incremental term loan and a Caa2 rating to the proposed $425 million second lien notes. The proceeds from the incremental term loan and second lien notes will be used to redeem the company's existing senior unsecured notes. The Caa1 rating on the existing senior unsecured notes is unchanged and will be withdrawn when the refinancing is completed. JMC Steel Group, Inc. has changed its legal name to Zekelman Industries, Inc. The change in Zekelman Industries rating outlook to positive from negative reflects the expectation the company will complete its proposed refinancing and extend its debt maturities. It also incorporates the recent significant improvement in its credit metrics and the expectation they will continue to improve in the near term. These ratings were affected in this rating action: Outlook Actions: Changed to positive from negative Affirmations: Corporate family rating, B3; Probability of default rating, B3-PD; Senior secured term loan B due 2017, B2 (LGD 3) Assignments: Senior secured term loan B due 2021, B2 (LGD 3) Second lien notes due 2023, Caa2 (LGD 5) RATINGS RATIONALE Zekelman Industries B3 corporate family rating reflects the company's elevated leverage, low interest coverage and inconsistent free cash flow generation. The rating also reflects Zekelman's exposure to the volatile steel sector, which has historically caused wide variability in its operating performance. The company's rating favorably considers its leading market position for a number of structural, pipe and electrical conduit products. It also reflects our expectation that its operating performance will continue to improve in the near term supported by higher product prices and gradually improving nonresidential construction activity. The rating also benefits from the company's adequate liquidity profile. Zekelman Industries credit metrics and liquidity have strengthened considerably in fiscal 2016 (ends September 2016) as the company has benefitted from improved spreads between steel purchases for inventory and final product prices, as well as cost cuts and productivity improvements. Zekelman Industries has been able to widen its material spreads during the first half of the fiscal year as the company and its competitors have focused on improved pricing discipline and benefitted from selling products produced with low cost steel inventories during a period of rising finished product prices. This is the exact opposite of the situation faced by the company in fiscal 2015 when it was consuming high priced steel inventory during a period of declining product prices. As a result, Zekelman's operating results have improved dramatically with adjusted EBITDA of about $132 million during the six months ended March 2016 versus $64 million during the same period last year. Substantial working capital reductions in fiscal 2015 due to the company's countercyclical working capital needs along with the recently improved operating performance have enabled it to generate $176 million of free cash flow over the trailing twelve months ended March 2016. The company used that free cash to retire $174 million of debt and that has resulted in substantially improved credit metrics. Zekelman's adjusted leverage ratio (debt/EBITDA) has declined to 5.8x in March 2016 from 8.5x in December 2015 and its interest coverage ratio (EBIT/Interest Expense) has risen to 1.5x from 0.8x. These ratios are still a little weak for the company's rating, but are expected to improve further along with the company's operating results in the back half of fiscal 2016 as product prices rise and material spreads remain favorable. Zekelman Industries has an adequate liquidity profile with a cash balance of $29 million and borrowing availability of $214 million as of March 26, 2016. The company had no borrowings on its $400 million revolver and $8 million of letters of credit issued. The senior secured revolving credit facility matures in November 2019 or 90 days prior to Zekelman's nearest debt maturity, which is the senior secured term loan due on April 1, 2017. Therefore, the revolver currently matures on January 1, 2017, but will move out to November 2019 if the proposed refinancing is completed. The company plans to reduce the revolver capacity to $350 million as part of its refinancing, but should still maintain adequate liquidity. The positive outlook reflects our expectation that Zekelman's operating results and credit metrics will improve materially in the near term to a level that is somewhat strong for its rating. Should Zekelman Industries be able to achieve a leverage ratio below 5.0x, EBIT to interest above 2.0x and free cash flow to debt (CFO-dividends/debt) above 10% on a sustainable basis, then a change in rating could be considered. A downgrade could be considered should Zekelman's operating results and credit metrics weaken or its liquidity position deteriorates materially. Downside triggers would include the leverage ratio above 6.5x, interest coverage ratio below 1.5x and free cash flow to debt below 10%. The principal methodology used in these ratings was Global Steel Industry published in October 2012. Headquartered in Chicago, Illinois, Zekelman Industries, Inc. (JMC Steel Group, Inc.) manufactures steel pipe, hollow structural steel (HSS), electrical conduit and tubular products including oil country tubular goods (OCTG) at thirteen manufacturing facilities in the US and Canada. The company includes the operating divisions of Atlas Tube, Wheatland Tube, Sharon Tube, Picoma and EnergeX tube and has leading market positions in key product areas including hollow structural steel, standard pipe, electrical conduit, galvanized mechanical tube and fittings. Its products are sold principally to steel service centers and plumbing and electrical distributors. Revenues for the twelve months ended March 26, 2016 were approximately $1.7 billion. ZEKELMAN INDUSTRIES: S&P Raises CCR to 'B+', Outlook Stable ----------------------------------------------------------- S&P Global Ratings said it raised its corporate credit rating on Chicago-based Zekelman Industries Inc. to 'B+' from 'B'. The outlook is stable. At the same time, S&P affirmed its 'BB-' issue-level rating on the company's first-lien senior secured term loan due 2021, but revised S&P's recovery rating on the debt to '2' from '1'. The '2' recovery rating indicates S&P's expectation for substantial (70% to 90%; at the lower end of the range) recovery in the event of a payment default. S&P also assigned its 'B' issue-level rating and '5' recovery rating to the company's proposed $425 million second-lien senior secured notes due 2023. The '5' recovery rating indicates S&P's expectation for modest (10% to 30%; at the lower end of the range) recovery in the event of a payment default. "The stable outlook reflects our view that Zekelman Industries' credit measures will remain highly leveraged over the next 12 months, with adjusted debt to EBITDA between 5.5x and 6x and FFO to debt below 10%," S&P Global Ratings credit analyst Michael Maggi. "Our outlook takes into account the company's proposed refinancing, its strengthening financial results, and our expectation for continued improvement in the residential and nonresidential construction markets. We also expect Zekelman Industries to continue to benefit from higher steel prices and an overall stabilizing steel market." S&P could take a positive rating action on Zekelman Industries if steel prices stabilized further or maintained their recent rise or if end market demand (especially in nonresidential construction) were stronger than S&P projected, resulting in adjusted debt to EBITDA sustained below 5x or FFO to debt sustained above 12%. S&P could lower its ratings by one notch if the company's recently improved operating results were not sustained, leading to adjusted debt to EBITDA sustained above 8x. This could occur if demand slowed in the company's key construction-related end markets and/or if steel prices headed quickly back down to the lows reached at the end of last year. S&P could also take a negative rating action if the company were unable to maintain its strong liquidity. ZOHAR CDO 2003: Fund Manager Turns Up Pressure on Creator --------------------------------------------------------- Peg Brickley, writing for Daily Bankruptcy Review, reported that pressure is mounting on Lynn Tilton as new managers struggle to make sense of the $2.5 billion distressed-debt investing operation she founded. According to the report, Vice Chancellor Joseph Slights of Delaware's Court of Chancery said on May 25 that a quick decision is needed on a request for more information about Ms. Tilton's operation. The report related that Alvarez & Marsal, the new manager of the Zohar funds that Ms. Tilton created and managed for years, says it needs a court order to force her private-equity firm, Patriarch Partners, to provide more information about the investments in the funds to deal with a looming default on $750 million worth of notes. Patriarch says it has handed over all the information it is required to, the report related. The three Zohar funds are made up of troubled companies' loans as well as ownership stakes in some of the companies, the report noted. Alvarez & Marsal stepped in in March, when Ms. Tilton stepped away to tend to the portfolio of troubled companies managed by Patriarch, the report recalled. There is a need for swift action on the dispute, Judge Slights said, but he hasn't decided whether that action should come from Delaware's Court of Chancery, where he sits, or from state court in New York, where part of the dispute is brewing, the report added. About Zohar CDO 2003-1 Patriarch Partners XV, LLC filed involuntary Chapter 11 bankruptcy petitions against Zohar CDO 2003-1, Corp., Zohar CDO 2003-1, Limited and Zohar CDO 2003-1, LLC (Bankr. S.D.N.Y. Case Nos. 15-23681 to 15-23682) on Nov. 22, 2015. Patriarch Partners disclosed that it has filed, through one of its affiliates, an involuntary Chapter 11 petition for Zohar CDO 2003-1, Limited. Patriarch is Zohar I's largest creditor, holding $286.5 million face amount of Zohar I notes. Patriarch has placed Zohar I into Chapter 11 in order to protect Zohar I and Patriarch from the efforts of MBIA Inc. and MBIA Insurance Corporation, another creditor of Zohar I, to obtain Zohar I's assets for itself. Patriarch claimed it has been forced to pursue this route because of MBIA's fraudulent scheme to induce Patriarch XV to spend over $103 million to buy out a third-party noteholder in Zohar-I to facilitate a restructuring of Zohar-I. Lynn Tilton is CEO of Patriarch. 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THE LAW OFFICES OF OLIVER & CHEEK, PLLC E-mail: efile@ofc-law.com In re Drew Transportation Services, Inc. Bankr. E.D.N.C. Case No. 16-02609 Chapter 11 Petition filed May 16, 2016 See http://bankrupt.com/misc/nceb16-02609.pdf represented by: Travis Sasser, Esq. SASSER LAW FIRM E-mail: tsasser@carybankruptcy.com In re G.A.S. of Eatontown LLC Bankr. D.N.J. Case No. 16-19480 Chapter 11 Petition filed May 16, 2016 See http://bankrupt.com/misc/njb16-19480.pdf Filed Pro Se In re Personal Touch Auto Detailing LLC Bankr. S.D.N.Y. Case No. 16-22668 Chapter 11 Petition filed May 16, 2016 See http://bankrupt.com/misc/nysb16-22668.pdf represented by: Matthew M. Cabrera, Esq. M. CABRERA & ASSOCIATES, P.C. E-mail: mcabecf@mcablaw.com In re Robert S DeLuca and Frances A Berkavich Bankr. W.D. Pa. Case No. 16-21856 Chapter 11 Petition filed May 16, 2016 represented by: Dennis J. Spyra, Esq. E-mail: attorneyspyra@dennisspyra.com In re Corwin Place LLC Bankr. W.D. Pa. Case No. 16-21861 Chapter 11 Petition filed May 16, 2016 See http://bankrupt.com/misc/pawb16-21861.pdf represented by: Robert O Lampl, Esq. E-mail: rol@lampllaw.com In re Modesto Reyes Aviles and Norma Lissette Bankr. D.P.R. Case No. 16-03909 Chapter 11 Petition filed May 16, 2016 represented by: Lyssette A Morales Vidal, Esq. LYSSETE MORALESLAW OFFICE E-mail: lamoraleslawoffice@gmail.com In re Farmacias Puerto Rico Bankr. D.P.R. Case No. 16-03910 Chapter 11 Petition filed May 16, 2016 See http://bankrupt.com/misc/prb16-03910.pdf represented by: Carlos Rodriguez Quesada, Esq. LAW OFFICE OF CARLOS RODRIGUEZ QUESADA E-mail: cerqlaw@gmail.com In re Voyager Transit, Inc. Bankr. N.D. Tex. Case No. 16-41942 Chapter 11 Petition filed May 16, 2016 See http://bankrupt.com/misc/txnb16-41942.pdf represented by: Eric A. Liepins, Esq. ERIC A. LIEPINS, P.C. E-mail: eric@ealpc.com In re Upscale Financial LLC Bankr. C.D. Cal. Case No. 16-16472 Chapter 11 Petition filed May 17, 2016 See http://bankrupt.com/misc/cacb16-16472.pdf Filed Pro Se In re Celina Gonzalez De Andrade Bankr. C.D. Cal. Case No. 16-16485 Chapter 11 Petition filed May 17, 2016 represented by: Matthew D Resnik, Esq. SIMON RESNIK HAYES LLP E-mail: matt@srhlawfirm.com In re Ali Shenasa Bankr. N.D. Cal. Case No. 16-51477 Chapter 11 Petition filed May 17, 2016 represented by: David A. Boone, Esq. LAW OFFICES OF DAVID A. BOONE E-mail: ecfdavidboone@aol.com In re S-Metals FL, LLC Bankr. S.D. Fla. Case No. 16-17050 Chapter 11 Petition filed May 17, 2016 See http://bankrupt.com/misc/flsb16-17050.pdf represented by: Joel M. Aresty, Esq. JOEL M. ARESTY P.A. E-mail: aresty@mac.com In re John E Mayer Bankr. N.D. Ill. Case No. 16-16536 Chapter 11 Petition filed May 17, 2016 represented by: William E. Jamison, Jr., Esq. E-mail: wjami39246@aol.com In re Williams Contracting, LLC d/b/a diggpros Bankr. W.D.N.C. Case No. 16-30814 Chapter 11 Petition filed May 17, 2016 See http://bankrupt.com/misc/ncwb16-30814.pdf represented by: John C. Woodman, Esq. SODOMA LAW E-mail: jwoodman@sodomalaw.com In re AmeriCol, Inc. Bankr. D.N.J. Case No. 16-19584 Chapter 11 Petition filed May 17, 2016 See http://bankrupt.com/misc/njb16-19584.pdf Filed Pro Se In re 7424 Fourth Avenue LLC Bankr. D.N.J. Case No. 16-19603 Chapter 11 Petition filed May 17, 2016 See http://bankrupt.com/misc/njb16-19603.pdf represented by: Robert M. Rich, Esq. E-mail: rrlaw@aol.com In re Linden & Associates, PC Bankr. D. Nev. Case No. 16-12697 Chapter 11 Petition filed May 17, 2016 See http://bankrupt.com/misc/nvb16-12697.pdf represented by: Ryan J. Works, Esq. MCDONALD CARANO WILSON LLP E-mail: rworks@mcdonaldcarano.com In re Manuel J Duarte Bankr. D. Nev. Case No. 16-12705 Chapter 11 Petition filed May 17, 2016 Represented by: Michael J. Harker, Esq. E-mail: notices@harkerlawfirm.com In re Holy Nazarene Deliverance Ministries, Inc. Bankr. E.D.N.Y. Case No. 16-42137 Chapter 11 Petition filed May 17, 2016 Filed Pro Se In re William Barry Bland and Sherrill Ann Robertson-Bland Bankr. D.S.C. Case No. 16-02464 Chapter 11 Petition filed May 17, 2016 represented by: Robert H. Cooper, Esq. THE COOPER LAW FIRM E-mail: thecooperlawfirm@thecooperlawfirm.com In re T&H Plastics, Inc. Bankr. S.D. Tex. Case No. 16-32525 Chapter 11 Petition filed May 17, 2016 See http://bankrupt.com/misc/txsb16-32525.pdf represented by: Veronica A. Polnick, Esq. THE POLNICK LAW FIRM, PLLC E-mail: veronica.polnick@polnicklaw.com In re Tall City Well Service, LP Bankr. W.D. Tex. Case No. 16-70079 Chapter 11 Petition filed May 17, 2016 See http://bankrupt.com/misc/txwb16-70079.pdf represented by: Jesse Blanco Jr, Esq. E-mail: jesseblanco@sbcglobal.net In re J G Solis, Inc. Bankr. W.D. Tex. Case No. 16-70080 Chapter 11 Petition filed May 17, 2016 See http://bankrupt.com/misc/txwb16-70080.pdf represented by: Jesse Blanco Jr, Esq. E-mail: jesseblanco@sbcglobal.net In re Shane E Powell Bankr. D. Ariz. Case No. 16-05611 Chapter 11 Petition filed May 18, 2016 represented by: Carlos M. Arboleda, Esq. ARBOLEDA BRECHNER E-mail: arboledac@abfirm.com In re Pierre Jerrod Elliott Bankr. S.D. Fla. Case No. 16-17147 Chapter 11 Petition filed May 18, 2016 Filed Pro Se In re Big Deer Holdings, LLC Bankr. D. Nev. Case No. 16-12737 Chapter 11 Petition filed May 18, 2016 See http://bankrupt.com/misc/nvb16-12737.pdf represented by: Taylor L. Randolph, Esq. RANDOLPH LAW FIRM, P.C. E-mail: tr@randolphlawfirm.com In re Symphonic Holdings LLC Bankr. E.D.N.Y. Case No. 16-72228 Chapter 11 Petition filed May 18, 2016 See http://bankrupt.com/misc/nyeb16-72228.pdf represented by: Gerard R Luckman, Esq. SILVERMANACAMPORA LLP E-mail: efilings@spallp.com In re T.C. Music Co., Inc. Bankr. E.D.N.Y. Case No. 16-72231 Chapter 11 Petition filed May 18, 2016 See http://bankrupt.com/misc/nyeb16-72231.pdf represented by: Gerard R Luckman, Esq. SILVERMANACAMPORA LLP E-mail: efilings@spallp.com In re Claudia Phillips Bankr. C.D. Cal. Case No. 16-11496 Chapter 11 Petition filed May 19, 2016 represented by: Claudia L Phillips, Esq. E-mail: celpmgp@aol.com In re Aps-Stellar View, LLC Bankr. D. Nev. Case No. 16-12756 Chapter 11 Petition filed May 19, 2016 See http://bankrupt.com/misc/nvb16-12756.pdf represented by: Keen L Ellsworth, Esq. E-mail: keen@silverstatelaw.com In re Patrick Canet Bankr. D. Nev. Case No. 16-50644 Chapter 11 Petition filed May 19, 2016 See http://bankrupt.com/misc/nvb16-50644.pdf represented by: Jeffrey L Hartman, Esq. HARTMAN & HARTMAN E-mail: notices@bankruptcyreno.com In re Worldwide Housing & Development (NA), Inc. Bankr. E.D.N.Y. Case No. 16-422222 Chapter 11 Petition filed May 19, 2016 See http://bankrupt.com/misc/nyeb16-42222.pdf represented by: Vivia L Joseph, Esq. VIVIA L JOSEPH LAW GROUP, P.C. E-mail: vjoseph@att.net In re Russel John Larson and Julie Ann Larson Bankr. D.S.D. Case No. 16-50131 Chapter 11 Petition filed May 19, 2016 represented by: Jason R. Ravnsborg, Esq. HARMELINK, FOX & RAVNSBORG E-mail: jrrlaw@midco.net In re Greater Adelaide Church, a Tennessee Unincorporated Association Bankr. W.D. Tenn. Case No. 16-24693 Chapter 11 Petition filed May 19, 2016 See http://bankrupt.com/misc/tnwb16-24693.pdf represented by: Toni Campbell Parker, Esq. LAW OFFICE OF TONI CAMPBELL PARKER E-mail: tparker002@att.net ********* 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 ***