/raid1/www/Hosts/bankrupt/TCR_Public/160721.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, July 21, 2016, Vol. 20, No. 203
Headlines
45 JOHN LOFTS: Case Summary & 6 Unsecured Creditors
AETHLON MEDICAL: Squar Milner Expresses Going Concern Doubt
AMERICOLD REALTY: Moody's Raises CFR to B2 & Sec. Loan Rating to B
ANIMAS WELL: U.S. Trustee Objects to Approval of Disclosures
ASIA TRAVEL: DCAW Raises Going Concern Doubt on Accumalated Deficit
BH GRP: Court Denies Move to Assume Contracts & Sell Homes
BIOMEDICAL TECHNOLOGY: Court Sets Oct. 14 Admin. Claims Bar Date
BIRCH GROVE LANDSCAPING: Can Use Cash Collateral Up to Sept. 30
BREAKWATER MARINA: Court Okays 1st Amended Disclosure Statement
CAESARS ENTERTAINMENT: Plan Confirmation Hearing Set for Jan. 17
CAMBRIDGE DEVELOPMENT: Case Summary & 3 Unsecured Creditors
CENGIZ J. COMU: Ch. 11 Trustee OK'd After Conversion
CERTIFIED ENERGY LABS: Proofs of Claim Due Oct. 12, 2016
CHC GROUP: Court Sets August 26 as Claims Bar Date
COMMUNITY PAPERS: Cash Collateral Use Extended to July 25
COMMUNITY PAPERS: Solicitation Period Extended to Sept. 20
COVERIS HOLDINGS: S&P Affirms 'B' CCR, Outlook Remains Stable
DEASY ASSOCIATES: Plan Outline Ok'd, Confirmation Hearing on Aug 4
DIANE ROSE MAESTRI: Has Until Aug. 5 to File Disclosure Statement
DOROTHY HANNAH HAMILBURG: Creditor Wants Chapter 11 Trustee
E Z MAILING: Wants Plan Filing Period Extended to Aug. 31
EN BUENAS MANOS: Files First Amended Disclosure Statement
ENERGY XXI: Seeks Plan Filing Deadline Extension to Oct. 11
ESSEX CRANE: Public Auction Set for July 28
FORBES ENERGY: S&P Lowers CCR to 'D' on Missed Interest Payment
FORESIGHT ENERGY: Has Until Aug. 2 to Consummate Restructuring
GENON ENERGY: Closes Sale of Illinois Gas Facility for $369-Mil.
HARRISON VICKERS: Incurs $7.24-Mil. Net Loss in Qtr. Ended Sept. 30
INSTITUTO MEDICO: Patient Care Ombudsman Issues Monitoring Report
INVERRARY RESORT HOTEL: Taps Vacation Resorts as Property Manager
J&C OILFIELD: Wants Cash Collateral Use for $26K Monthly Expenses
JAMES HARDIE: Moody's Rates Proposed $75MM Notes Add-On 'Ba1'
JAMMIN JAVA: Posts $1.49-Mil. Net Loss in April 30 Quarter
JOURNEY HOSPICE CARE OF HOUMA: Claims Bar Date Sought
KAREN ILENE CARTER: No Funds Available for Unsecureds
KENNETH BAKER: $1.71MM Sale of NY Property to Simpsons Approved
KEVIN BOUTIN: Court Approves Outline of Chapter 11 Plan
KIRKLAND BROS: Cypress-Fairbanks ISD Objects to Plan
KIRKLAND BROS: Security Bank Objects to Confirmation of Plan
KIRKLAND BROS: Sheldon Independent, Et Al. Objects to Plan
LENNAR BUFFINGTON: Court Okays Disclosure Statement
LENNAR BUFFINGTON: No Distribution for Unsecureds Under Plan
LIFE PARTNERS: Transparency Plan Confirmation Hearing on Aug 29
LPATH INC: Dario Paggiarino Resigns as SVP and CDO
M/I HOMES: S&P Raises CCR to 'B+', Outlook Stable
MARICOPA RESOURCES: Jason Searcy Approved as Ch. 11 Trustee
MOBILE FOX: Hires Lansing Roy as Counsel
MORGANS HOTEL: Amends Schedule 13E-3 Transaction Statement
MOTORS LIQUIDATION: Pre-Sale Plaintiffs Can Pursue Claims vs New GM
MUSCLEPHARM CORP: May Issue 2 Million Shares Under Incentive Plan
NET ELEMENT: Reports $1.88-Mil. Net Loss in Quarter Ended March 31
NEWARK DOWNTOWN: Unsecureds to Get 100% Payment of Claims
NEWPAGE CORP: PI Claimant Seeks Leave to File Late Claim
NICKLAS LLC: Unsecured Creditors to be Paid in 60 Months
NORDIC INTERIOR: Files for Chapter 11 Bankruptcy
NORTH TEXAS ENERGY: Reports $42-K Net Loss in Q2 Ended March 31
NORTHWOOD PROPERTIES: Selling 181-Acre Property for $650,000
NUVIRA HOSPITALITY: Must Continue Adequate Protection to Four Star
OAKRIDGE GLOBAL: Incurs $7.54-Mil. Net Loss in Sept. 30 Qtr.
ONCOBIOLOGICS INC: Incurs $3.54-Mil. Loss in Quarter Ended March 31
PACIFIC EXPLORATION: Meeting of Unsec. Creditors Set for Aug. 17
PAYSON OPERATING: Jason Searcy Approved as Ch. 11 Trustee
PFO GLOBAL: Marcum LLP Raises Going Concern Doubt on Losses
PRESIDENTIAL REALTY: Signs Letter of Intent to Acquire FCRETI
QUICKSILVER RESOURCES: Disclosures Approved; Aug. 15 Plan Hearing
R&S ST. ROSE LENDERS: Court Approves Disclosure Statement
REVLON CONSUMER: S&P Assigns 'B+' Rating on Proposed $400MM Notes
RICEBRAN TECHNOLOGIES: Appoints Michael Goose as Unit President
ROBERT LINN: Court Conditionally Approves Plan Outline
RUTH M DIETZMAN: Unsecureds to be Paid within 24 Months
SABRE HOLDINGS: S&P Assigns 'BB-' Rating on $1BB Sr. Facility
SEVENTY SEVEN: Assumption of $100-Mil. Exit Facility Letter Okayed
SEVENTY SEVEN: Can Assume Restructuring Support Agreement
SKII LLC: Exclusive Plan Filing Period Extended to Sept. 26
SLG INNOVATION: To Test iTRS's $950,000 Bid at Aug. 17 Auction
SNUG HARBOR: Wants Exclusive Plan Filing Deadline Moved to Oct. 8
ST. JOSEPH'S COLLEGE: Moody's Affirms Ba1 Rating on $25MM Debt
STANFORD FINANCIAL: Receiver Reached Settlement with Underwriters
STWC HOLDINGS: B.F. Borges Raises Going Concern Doubt on Losses
SUNEDISON INC: $24MM Sale of Interests to 93LF Approved
SUNEDISON INC: U.S. Trustee Opposes Key Employee Retention Plan
TCC GENERAL CONTRACTING: Cash Collateral Use OK Up to July 26
TECK RESOURCES: DBRS Confirms BB(high) Issuer Rating
TENNESSEE SEAFOOD: Proposes Nov. 9 Gen. Claims Bar Date
TERRA TECH: Incurs $4.14-Mil. Net Loss in Quarter Ended March 31
TRANS ENERGY: Maloney + Novotny Raises Going Concern Doubt on Loss
TRASK DEVELOPERS: Disclosure Statement Hearing on Sept. 15
UNITED REHABILITATION: Court Approves Claims Bar Date
USG CORP: S&P Raises CCR to 'BB', Outlook Positive
VIREOL BIO ENERGY: Court Okays Disclosure Statement
WALTER INVESTMENT: S&P Lowers ICR to 'B', Outlook Negative
WASHINGTON FIRST: Unsecureds to Be Paid from Liquidating Trust
WYNN RESORTS: Fitch Affirms & Withdraws 'BB' Issuer Default Rating
YASHAMAR INC: Selling Comfort Inns Hotel to Gayatri
[^] Recent Small-Dollar & Individual Chapter 11 Filings
*********
45 JOHN LOFTS: Case Summary & 6 Unsecured Creditors
---------------------------------------------------
Debtor: 45 John Lofts, LLC
c/o Silverman Shin & Bryne PLLC
88 Pine Street, 22nd Floor
New York, NY 10005
Case No.: 16-12043
Chapter 11 Petition Date: July 19, 2016
Court: United States Bankruptcy Court
Southern District of New York (Manhattan)
Judge: Hon. Sean H. Lane
Debtor's Counsel: Eloy A Peral, Esq.
WILK AUSLANDER LLP
1515 Broadway, 43rd Floor
New York, NY 10036
Tel: 212.981.2316
E-mail: eperal@wilkauslander.com
- and -
Eric J. Snyder, Esq.
WILK AUSLANDER LLP
1515 Broadway, 43rd Floor
New York, NY 10036
Tel: (212) 981-2300
Fax: (212) 752-6380
E-mail: esnyder@wilkauslander.com
Total Assets: $9.75 million
Total Liabilities: $1.67 million
The petition was signed by Chun Peter Dong, managing member.
A copy of the Debtor's list of six unsecured creditors is available
for free at http://bankrupt.com/misc/nysb16-12043.pdf
AETHLON MEDICAL: Squar Milner Expresses Going Concern Doubt
-----------------------------------------------------------
Aethlon Medical, Inc., filed with the U.S. Securities and Exchange
Commission its annual report on Form 10-K, reporting a net loss
attributable to common stockholders of $4.87 million on $886,572 of
revenues for the fiscal year ended March 31, 2016, compared to a
net loss attributable to common stockholders of $6.80 million on
$762,417 of revenues for the fiscal year ended in 2015.
At March 31, 2016, the company had total assets of $2.56 million
total liabilities of $1.05 million, and stockholders' equity of
$1.50 million.
Squar Milner LLP in San Diego, Calif., issued a "going concern"
qualification on the consolidated financial statements for the year
ended March 31, 2016, noting that the Company incurred a net loss
and generated negative cash flows from operating activity and as of
March 31, 2016, had an accumulated deficit of approximately
$86,502,000. These factors raise substantial doubt about the
Company's ability to continue as a going concern.
A significant amount of additional capital will be necessary to
advance the development of its products to the point at which they
may become commercially viable.
A full-text copy of the company's annual report is available for
free at:
https://is.gd/lghgqc
Aethlon Medical, a medical device company, focuses on creating
devices for the treatment of cancer, infectious diseases, and other
life-threatening conditions. It develops Aethlon Hemopurifier, a
medical device that targets the elimination of circulating viruses
and tumor-secreted exosomes that promote cancer progression. The
company's Aethlon Hemopurifier is intended for the treatment of
antiviral drug-resistance in hepatitis-C virus and human
immunodeficiency virus infected individuals; serves as a
countermeasure against viral pathogens not addressed by drug or
vaccine therapies; and represents the therapeutic strategy to
address cancer promoting exosomes. It also develops exosome-based
products to diagnose and monitor cancer, infectious diseases, and
neurological disorders; and is developing a medical device to
reduce the incidence of sepsis in combat-injured soldiers. The
company was founded in 1991 and is based in San Diego, California.
Squar, Milner, Peterson, Miranda & Williamson, LLP, expressed
substantial doubt about the Company's ability to continue as a
going concern, citing that the Company has incurred continuing
losses from operations and at March 31, 2014 is in default on
certain debt agreements, has negative working capital of
approximately $14.17 million and an accumulated deficit of
approximately $74.83 million. A significant amount of additional
capital will be necessary to advance the development of the
Company's products to the point at which they may become
commercially viable.
The Company reported a net loss of $888,000 on $479,000 of
government contract revenue for the three months ended Sept. 30,
2014, compared with a net loss of $3.35 million on $645,000 of
government contract revenue for the same period in 2013.
The Company's balance sheet at Sept. 30, 2014, showed $1.09 million
in total assets, $4.38 million in total liabilities, and a
stockholders' deficit of $3.29 million.
AMERICOLD REALTY: Moody's Raises CFR to B2 & Sec. Loan Rating to B
------------------------------------------------------------------
Moody's Investors Service upgraded the ratings for Americold Realty
Trust, including the Corporate Family Rating to B2 from B3 and the
Senior Secured Term Loan B to B2 (LGD3) from B3 (LGD3). The outlook
is stable. This concludes the review that was initiated on June 6,
2016, when Americold launched the add-on to its Senior Secured Term
Loan B, the proceeds of which are expected to be used to repay a
Commercial Mortgage Backed Security obligation maturing in December
2016. On July 18, 2016, Americold closed the add-on and repaid the
CMBS.
RATINGS RATIONALE
Americold's projected debt to EBITDA is over seven times and
expected to remain around that level, with EBITA to interest
coverage for 2016 approximately 1.0 times. Both metrics are weak
for the rating. EBITDA to interest, however, is anticipated to be
around 2.2 times reflecting the high depreciation element given
Americold's largely real estate assets. As well, Americold has a
good market position serving a range of agricultural related
sectors with a needed service, and revenue is relatively
predictable.
With the December 2016, CMBS repaid with proceeds from the Term
Loan B, Americold does not have any meaningful scheduled debt
maturities until 2020. Also, Americold's sizable planned growth
capex and dividends are in excess of cash flow from operations and
balance sheet cash is relatively low. Nonetheless, there is unused
capacity on the revolver and there are unencumbered assets, so
liquidity is considered adequate.
The stable outlook reflects Moody's expectation that Americold will
demonstrate steady, low single digit growth in sales through new
and existing customers while modestly lowering leverage over time
from profit growth.
The ratings could be upgraded if Americold lowers debt to EBITDA
below 5.0 times and increases EBITA to interest coverage above 1.5
times while demonstrating more robust liquidity and positive free
cash flow, a greater diversity of customers and longer term
predictability of cash flow from the warehouse leases. Conversely,
the ratings could be downgraded if debt to EBITDA is expected to
rise above the mid seven times level or interest coverage drops
below 1.0 times or liquidity weakens. Loss of a substantial
customer business would also likely lead to a downgrade.
The principal methodology used in these ratings was Business and
Consumer Service Industry published in December 2014.
These ratings for Americold Realty Trust were upgraded:
Probability of Default Rating, Upgraded to B2-PD from B3-PD
Corporate Family Rating, Upgraded to B2 from B3
Senior Secured Bank Credit Facility, Upgraded to B2 (LGD3) from
B3 (LGD3)
Outlook Actions:
Americold Realty Trust - Outlook changed to Stable from Rating
Under Review
Americold is a leading provider of cold storage services
headquartered in Atlanta, and is organized as a real estate
investment trust. The firm is focused on the ownership, operation,
development and acquisition of temperature-controlled real estate.
Americold also provides additional services including warehouse
handling and value-add logistics services to manage the entire
temperature-controlled supply chain.
ANIMAS WELL: U.S. Trustee Objects to Approval of Disclosures
------------------------------------------------------------
Judy A. Robbins, United States Trustee for Region 7, filed an
objection to Animas Well Services, LLC's Disclosure Statement.
As reported by the Troubled Company Reporter on June 15, 2016, the
Debtor filed a Chapter 11 plan of liquidation and accompanying
disclosure statement proposing to sell substantially all of its
assets at an auction to the bidder with the highest and best bid,
the proceeds of which will be used to pay creditors with allowed
claims.
The U.S. Trustee objects to the Disclosure Statements for these
reasons:
A. The Debtor's Plan is a liquidating plan. The Debtor needs
To demonstrate why its liquidating plan would be superior
to a Chapter 7 liquidation. The Debtor's Disclosure
Statement and Plan do not provide creditors with
sufficient information to make this determination. Rather,
The information provided appears to demonstrate that a
Chapter 7 liquidation would be preferable. The Debtor's
Plan, in Article XI (p. 40-43), appears to provide for
non-consensual releases and exculpation of non-debtors.
The Fifth Circuit Court of Appeals has held that non-
consensual non-debtor releases are prohibited. To the
extent the Plan attempts to effectuate a non-consensual
release or exculpation of non-debtors, it is not
confirmable and should not be sent out to creditors for
voting. Moreover, there would be no releases if the
Debtor's assets were liquidated in a Chapter 7 proceeding.
In Article V (p. 8-9), the Disclosure Statement generally
describes a proposed sale of certain of the Debtor=s
assets to another entity as a Stalking Horse. However,
there is not sufficient information concerning the terms
of any sale as there is no asset purchase agreement
attached. The Debtor should be required to describe the
terms of the proposed sale and attach the proposed APA to
the Disclosure Statement so that creditors (and potential
bidders) can review the terms;
B. It does not appear the Debtor is entitled to a discharge.
However, it appears the Plan provides for a permanent
injunction against creditors. The U.S. Trustee asserts
that a permanent injunction binding creditors effectuates
a discharge to which the Debtor is not entitled;
C. The Debtor's Plan proposes a liquidating trust and that
the Debtor's management will appoint the liquidating
trustee. The Debtor does not attach a form liquidating
trust agreement, the identity of the liquidating trustee,
or the estimated costs associated with the liquidating
Trust. Without the information, the creditors cannot
determine whether a Chapter 7 liquidation would be
Preferable; and
D. In Article 11.7 pf the Plan (p. 42), it appears the Debtor
is releasing professionals and insiders of the Debtor for
no consideration. The Debtor needs to explain in the
Disclosure Statement why the releases are in the best
interests of creditors as such releases would not be
required in a Chapter 7 liquidation.
A copy of the objection is available for free at:
http://bankrupt.com/misc/txwb15-70162-184.pdf
Animas Well Services, LLC (Bankr. W.D. Tex., Case No. 15-70162)
filed a Chapter 11 Petition on November 24, 2015. The case is
assigned to Judge Ronald B. King. The Debtor operates an oil and
has services company in Midland, Texas.
The Debtor's Counsel is Jonathan L. Howell, Esq., at Glast,
Phillips & Murray, P.C., in Dallas, Texas. The petition was signed
by Kenneth C. Krisa, president.
A list of the Debtor's 20 largest unsecured creditors is available
for free at http://bankrupt.com/misc/txwb15-70162.pdf
ASIA TRAVEL: DCAW Raises Going Concern Doubt on Accumalated Deficit
-------------------------------------------------------------------
Asia Travel Corporation filed with the Securities and Exchange
Commission its annual report on Form 10-K disclosing a net loss of
$1.36 million on $566,587 of revenues for the fiscal year ended
March 31, 2016, compared to a net loss of $1.34 million on $817,680
of revenues for the fiscal year ended in 2015.
At March 31, 2016, the company had total assets of $2.88 million,
total liabilities of $4.56 million, and total stockholders' deficit
of $1.68 million.
The Company has generated a net loss of $1,356,784 and an
accumulated deficit of $11,380,869 as of March 31, 2016. The
Company also experienced insufficient cash flows from operations
and will be required continuous financial support from the
shareholders. The Company will need to raise capital to fund its
operations until it is able to generate sufficient revenue to
support the future development. Moreover, the Company may be
continuously raising capital through the sale of debt and equity
securities.
The Company's ability to achieve these objectives cannot be
determined at this stage. If the Company is unsuccessful in its
endeavors, it may be forced to cease operations. These consolidated
financial statements do not include any adjustments that might
result from this uncertainty which may include adjustments relating
to the recoverability and classification of recorded asset amounts,
or amounts and classifications of liabilities that might be
necessary should the Company be unable to continue as a going
concern.
DCAW (CPA) Limited notes that the Company has an accumulated
deficit, and has suffered losses from operations. Its ability to
continue as a going concern is dependent upon its ability to
develop additional sources of capital, generate income, and
ultimately, achieve profitable operations. These conditions raise
substantial doubt about its ability to continue as a going concern.
A full-text copy of the company's 10-K report is available for free
at:
https://is.gd/A03GcU
Asia Travel Corporation operates a travel agency, hotel and
Tengfei, a three-star hotel with around 66 guest rooms, including
62 standard rooms and four deluxe rooms, through direct ownership
in China. The Company operates through two segments: travel agency,
which provides packaged tours, air ticketing, reservation of hotel
rooms and golf courses and organize corporate conferences,
exhibitions and show events for its customers and travel agency,
and hotel services. Its customers are primarily tourists and
business travelers. The Company's tourist customers are from
mainland China, Hong Kong, Macau, Taiwan, Singapore, Malaysia and
other southeastern Asian countries.
BH GRP: Court Denies Move to Assume Contracts & Sell Homes
----------------------------------------------------------
Judge Jerry A. Brown, of the U.S. Bankruptcy Court for the Eastern
District of Louisiana, denied BH GRP, LLC's Motion seeking
authority to assume prepetition contracts and continue to enter
into contracts to sell homes free and clear of liens, claims,
encumbrances and other interests in the ordinary course of
business, among other things.
Ecliff John Pesnell and Exemplar Capital Management filed
objections to the Debtor's Motion.
A full-text copy of the Order, dated July 18, 2016, is available at
https://is.gd/I14AcM
About BH GRP, LLC.
BH GRP, LLC, is a real estate rehabilitation company. BHG, whose
origins date back to March 18, 2014, has no employees; however, it
utilizes subcontractors to rehabilitate houses to be placed back
into the stream of commerce for sale.
BH GRP filed for Chapter 11 bankruptcy protection (Bankr. E.D. La.
Case No. 16-10575) on March 17, 2016. The petition was signed by
Janice Bouldin, managing member.
As of the Petition Date, BHG, reported approximately $1,400,835 in
total assets and approximately $1,516,507 in total liabilities. As
of the Petition Date, there is approximately $1,327,217 in
outstanding property-level debt. For 2015, BHG reported no
revenue.
The Debtor is represented by Derek Terrell Russ, Esq., at the
Bankruptcy Center of Louisiana. The case is assigned to Judge
Jerry A. Brown.
BIOMEDICAL TECHNOLOGY: Court Sets Oct. 14 Admin. Claims Bar Date
----------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Connecticut has set
Oct. 14, 2016, as the deadline to file administrative claims
against Biomedical Technology Solutions, Inc.
About Biomedical Technology
Involuntary Chapter 7 petitions for Southbury, Connecticut-based
Biomedical Technology Solutions, Inc., and Biomedical Technology
Solutions Holdings, Inc. were filed by alleged creditors (Bankr. D.
Conn. Case Nos. 14-31678 and 14-31679) on Sept. 15, 2014. The
petitioning creditors were Bluestone Medical, Inc., Gordon Ogden,
Morris Martelle, William Shafer, Spectrum Advanced Mfg.
Technologies Inc., and Madeline Seaman Bricken.
The cases were converted to Chapter 11 on Jan. 7, 2015.
Counsel for the Debtor:
Stephen M. Kindseth, Esq.
ZEISLER & ZEISLER
10 Middle Street
15th Floor
Bridgeport, CT 06604
Tel: (203) 368-4234
Fax: (203) 367-9678
E-mail: skindseth@zeislaw.com
Counsel for Petitioning Creditors:
Nicholas W. Quesenberry, Esq.
GREEN & SKLARZ LLC
700 State Street, Suite 304
New Haven, CT 06511
Tel: (203) 285-8545
Fax: (203) 823-4546
E-mail: nquesenberry@gslawfirm.com
- and -
Jeffrey M. Sklarz, Esq.
GREEN & SKLARZ LLC
700 State Street, Suite 100
New Haven, CT 06511
Tel: (203) 285-8545
Fax: (203) 823-4546
E-mail: jsklarz@gslawfirm.com
The Official Committee of Unsecured Creditors' counsel:
Jeffrey Hellman, Esq.
LAW OFFICES OF JEFFREY HELLMAN, LLC
195 Church Street, 10th Floor
New Haven, CT 06510
Tel: (203) 691-8762
Fax: (203) 823-4401
E-mail: jeff@jeffhellmanlaw.com
BIRCH GROVE LANDSCAPING: Can Use Cash Collateral Up to Sept. 30
---------------------------------------------------------------
Judge Carl L. Bucki of the U.S. Bankruptcy Court for the Western
District of New York, authorizes Birch Grove Landscaping & Nursery,
Inc. to continue using Secured Creditor Bank of Akron and the
Estate of Gordon E. Fisher's cash collateral through September 30,
2016.
The Debtor has, from time-to-time, sought the Court's authority to
use cash collateral, as well as distribution of a portion of the
$367,534.50 auction proceeds, which the Court had ordered to be
held in escrow.
The Debtor had been previously authorized to use cash collateral up
to July 31, 2016.
Judge Bucki authorized the Debtor to make monthly payments in the
amount of $8,419 to the Bank of Akron as additional adequate
protection.
The approved Budget provides for operating expenses in the amount
of $16,584 for the week beginning July 18, 2016; $6,795 for the
week beginning July 25, 2016; $18,025 for the week beginning August
1, 2016; and $10,579 for the week beginning August 8, 2016.
The approved Budget also provides for total financing repayment
expenditures in the amount of $3,834.71 for the week beginning July
18, 2016; $9,677.50 for the week beginning July 25, 2016; $361 for
the week beginning August 1, 2016; and $3,834.71 for the week
beginning August 8, 2016.
A further hearing on the Debtor's use of cash collateral after
September 30, 2016 is scheduled on September 26, 2016 at 10:00
a.m.
A full-text copy of the Order, dated July 18, 2016, is available at
https://is.gd/80QxEP
About Birch Grove Landscaping & Nursery, Inc.
Headquartered in East Aurora, New York, Birch Grove Landscaping &
Nursery, Inc., filed for Chapter 11 bankruptcy protection (Bankr.
W.D.N.Y. Case No. 15-11984) on Sept. 18, 2015, estimating its
assets and liabilities at between $1 million and $10 million each.
The petition was signed by Jason L. Burford, chief operating
officer.
Judge Carl L. Bucki presides over the case.
Daniel F. Brown, Esq., at Anreozzi, Bluestein, Weber, Brown, LLP,
serves as the Debtor's bankruptcy counsel.
BREAKWATER MARINA: Court Okays 1st Amended Disclosure Statement
---------------------------------------------------------------
The Hon. Paul B. Snyder of the U.S. Bankruptcy Court for the
Western District of Washington has entered an order approving
Breakwater Marina, Inc.'s First Amended Disclosure Statement.
The hearing on confirmation of the Debtor's First Amended Plan of
Reorganization will be held on Aug. 11, 2016, at 9:00 a.m.
Aug. 4, 2016, is fixed as the last day for filing written
acceptances or rejections of the Debtor's First Amended Plan of
Reorganization, and any objections to the Debtor's First Amended
Plan of Reorganization.
Headquartered in Tacoma, Washington, Breakwater Marina Inc. filed
for Chapter 11 bankruptcy protection (Bankr. W.D. Wash. Case No.
13-41546) on March 10, 2013, estimating its assets at up to $50,000
and debts at between $1 million and $10 million. The petition was
signed by Michael Marchetti, president.
Judge Paul B. Snyder presides over the case.
Nathan T. Riordan, Esq., at Riordan Law PS serves as the Debtor's
bankruptcy counsel.
CAESARS ENTERTAINMENT: Plan Confirmation Hearing Set for Jan. 17
----------------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Illinois
approved the adequacy of the disclosure statement explaining the
second amended joint Chapter 11 plan of reorganization of Caesars
Entertainment Operating Company Inc. and its debtor-affiliates.
The Court set Oct. 31, 2016, at 4:00 p.m. (prevailing Central Time)
as last day for any holder of a claim entitle to vote to accept or
reject the Debtors' plan.
A hearing is set for Jan. 17, 2017, at 10:30 a.m. (prevailing
Central Time) in Courtroom No. 642 in the Everett McKinley Dirksen
United States Courthouse, 219 South Dearborn Street, Chicago,
Illinois, to confirm the Debtors' plan. Objections to
confirmation, if any, are due Oct. 31, 2016, at 4:00 p.m.
(prevailing Central Time).
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.
CAMBRIDGE DEVELOPMENT: Case Summary & 3 Unsecured Creditors
-----------------------------------------------------------
Debtor: Cambridge Development Corporation
8191 Quebec St
Commerce City, CO 80022-4951
Case No.: 16-17151
Chapter 11 Petition Date: July 19, 2016
Court: United States Bankruptcy Court
District of Colorado (Denver)
Judge: Hon. Howard R Tallman
Debtor's Counsel: Nathaniel Thompson, Esq.
LAW OFFICE OF NATHANIEL J. THOMPSON, LLC
3900 E. Mexico Ave., Suite 300
Denver, CO 80210
Tel: 720-319-7049
E-mail: njtlawdenver@gmail.com
Total Assets: $1.21 million
Total Liabilities: $1.33 million
The petition was signed by Eugene Aragon, president.
A copy of the Debtor's list of three unsecured creditors is
available for free at http://bankrupt.com/misc/cob16-17151.pdf
CENGIZ J. COMU: Ch. 11 Trustee OK'd After Conversion
----------------------------------------------------
A hearing was held July 14, 2016, on the motion filed by Diane
Reed, Chapter 7 Trustee for Cengiz J. Comu, seeking to have herself
appointed as Chapter 11 Trustee pursuant to 11 U.S.C. Sec. 1104(a)
upon conversion of this case from Chapter 7 to Chapter 11.
As Chapter 11 trustee, Ms. Reed said she may propose and seek
confirmation of a liquidating Chapter 11 plan.
After considering the Motion, the evidence and argument of counsel,
the Court granted the Motion. A Chapter 11 trustee will be
appointed pursuant to 11 U.S.C. Sec. 1104(a) immediately upon entry
of an order of the Court converting this Chapter 7 case to a
Chapter 11 case under the Bankruptcy Code.
The Chapter 7 case is In re Cengiz J. Comu (Bankr. N.D. Tex. Case
No. 09-38820).
CERTIFIED ENERGY LABS: Proofs of Claim Due Oct. 12, 2016
--------------------------------------------------------
Judge Arthur B. Federman on July 15, 2016, entered an order fixing
Oct. 12, 2016, as the deadline for all persons and entities that
assert a claim, as defined in Sec. 101(5) of the Bankruptcy Code,
against Certified Energy Labs, LLC, which arose on or prior to the
filing of the Chapter 11 petition on June 21, 2016, to file a
proof of such claim.
Attorneys and employees of institutional creditors should file
proofs of claim electronically on the Court's Case Management/
Electronic Case File ("CM/ECF") System. Those without accounts to
the CM/ECF System must file their Proofs of Claim by mailing or
delivering the original Proof of Claim by hand to the Clerk of the
United States Bankruptcy Court, 400 East Ninth Street, Room 1510,
Kansas City, Missouri 64106.
The following persons or entities need not file a proof of claim
on or prior to the Bar Date:
(a) Any person or entity that has already filed a Proof of
Claim against the Debtor with the Clerk of the Bankruptcy Court
for the Western District of Missouri in a form substantially
similar to Official Bankruptcy Form No. 10;
(b) Any person or entity whose clam is listed on the Schedules
filed by the Debtor, unless (i) the claim is scheduled as
"disputed," "contingent" or "unliquidated"; or (ii) the claimant
does not agree with the amount, nature and priority of the claim
as set forth in the Schedules;
(c) Any holder of a claim that heretofore has been allowed by
order of this Court;
(d) Any person or entity whose claim has been paid in full by
the Debtor;
(e) Any holder of a claim allowable under Sec. 503(b) and Sec.
507(a)(2) of the Bankruptcy Code as an expense of administration.
Any person or entity that holds a claim that arises from the
rejection of an executory contract or unexpired lease, as to which
the order authorizing such rejection is dated on or before July
15, 2016, must file a Proof of Claim based on such rejection on or
before the Bar Date, and any person or entity that holds a claim
that arises from the rejection of an executory contract or
unexpired lease, as to which an order authorizing such rejection
is dated after July 15, 2016, must file a Proof of Claim on or
before such date as the Court may fix in the applicable order
authorizing such rejection.
Holders of equity security interests in the Debtor need not file
proofs of interest with respect to the ownership of such equity
interests, provided, however, that if any such holder asserts a
claim against the Debtor -- including a claim relating to an equity
interest or the purchase or sale of such equity interest -- a proof
of the claim must be filed on or prior to the Bar Date.
About Certified Energy
Certified Energy Labs, LLC sought protection under Chapter 11 of
the Bankruptcy Code (Bankr. W.D. Mo. Case No. 16-41635) on June 21,
2016. The petition was signed by Keith Koehler, managing member.
The case is assigned to Judge Arthur B. Federman. At the time of
the filing, the Debtor disclosed $448,281 in assets and $2.24
million in debts. Certified Energy Labs hired Krigel & Krigel,
P.C., as its legal counsel.
CHC GROUP: Court Sets August 26 as Claims Bar Date
--------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Texas set
Aug. 26, 2016, at 4:00 p.m. (Pacific Time) as the deadline for
persons or entities to file proofs of claim against CHC Group Ltd.
and its debtor-affiliates.
The Court also set Nov. 1, 2016, at 4:00 p.m. (Pacific Time) as the
last day for governmental units to file their claims against the
Debtors.
Each proof of claim must be filed at:
CHC Group Claims Processing Center
c/o Kurtzman Carson Consultants LLC
2335 Alaska Avenue
El Segundo, California 90245
About CHC Group Ltd.
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.
COMMUNITY PAPERS: Cash Collateral Use Extended to July 25
---------------------------------------------------------
Judge Carl L. Bucki, of the U.S. Bankruptcy Court for the Western
District of New York, authorized Community Papers of Western New
York, LLC, and James C. Austin to use cash collateral up to July
25, 2016, pursuant to a Stipulation with The Buffalo News, Inc.
The Stipulation extended the Debtors' use of cash collateral, which
expired on July 18, 2016.
A full-text copy of the Stipulation and Order, dated July 18, 2016,
is available at https://is.gd/EL2qtG
The Buffalo News, Inc. is represented by:
Charles J. Sullivan, Esq.
Grayson T. Walter, Esq.
BOND, SCHOENECK & KING, PLLC
One Lincoln Center, 18th Floor
Syracuse, NY 13202
Telephone: (315)218-8000
Facsimile: (315)218-8100
Email: csullivan@bsk.com
gwalter@bsk.com
About Community Papers of Western New York, LLC
Based in Angola, New York, Community Papers of Western New York,
LLC, which owns several newspapers including the Hamburg Sun, West
Seneca Sun, and Orchard Park Sun, filed for Chapter 11 bankruptcy
(Bankr. W.D.N.Y. Case No. 15-12657) on December 15, 2015. The case
is jointly administered with the individual Chapter 11 case of its
CEO, James C. Austin, (Case No. 15-12658).
Daniel F. Brown, Esq., at ANDREOZZI, BLUESTEIN, WEBER, BROWN, LLP,
serves as the Debtors' counsel. The case is assigned to Judge Carl
L. Bucki.
Community Papers estimated $1 million to $10 million in both assets
and liabilities. The petition was signed by Mr. Austin.
A list of the Debtor's 20 largest unsecured creditors is available
for free at http://bankrupt.com/misc/nywb15-12657.pdf
COMMUNITY PAPERS: Solicitation Period Extended to Sept. 20
----------------------------------------------------------
The Hon. Carl L. Bucki of the U.S. Bankruptcy Court for the Western
District of New York has extended for an additional seven days the
period within which Community Papers of Western New York, LLC, and
James C. Austin alone might solicit acceptances of their proposed
plan of reorganization through Sept. 20, 2016.
The Court has also extended for an additional seven days, through
July 20, 2016, the time within which the Debtors exclusively may
file a joint plan and disclosure statement.
The Debtors asked the Court to extend for an additional six months,
through Oct. 13, 2016, the period within which the Debtors
exclusively may file a joint plan and disclosure statement and
extend for an additional six months, through Dec. 13, 2016, the
period within which the Debtors alone might solicit acceptances of
the plan.
Based in Angola, New York, Community Papers of Western New York,
LLC, which owns several newspapers including the Hamburg Sun, West
Seneca Sun, and Orchard Park Sun, filed for Chapter 11 bankruptcy
(Bankr. W.D.N.Y. Case No. 15-12657) on December 15, 2015. The case
is jointly administered with the individual Chapter 11 case of its
CEO, James C. Austin, (Case No. 15-12658).
Daniel F. Brown, Esq., at ANDREOZZI, BLUESTEIN, WEBER, BROWN, LLP,
serves as the Debtors' counsel.
Community Papers estimated $1 million to $10 million in both assets
and liabilities. The petition was signed by Mr. Austin.
A list of the Debtor's 20 largest unsecured creditors is available
for free at http://bankrupt.com/misc/nywb15-12657.pdf
COVERIS HOLDINGS: S&P Affirms 'B' CCR, Outlook Remains Stable
-------------------------------------------------------------
S&P Global Ratings said that it has affirmed its 'B' corporate
credit rating on U.S.-based packaging company Coveris Holdings S.A.
The outlook remains stable.
At the same time, S&P affirmed its 'B' issue-level rating on the
company's first-lien term loan facilities, which include the
proposed incremental $350 million senior secured term loan. The
'3' recovery rating remains unchanged, indicating S&P's expectation
of meaningful (50%-70%; lower end of the range) recovery in the
event of a payment default.
S&P also affirmed its 'B-' issue-level rating on Coveris' 7.875%
senior unsecured notes due 2019. The '5' recovery rating remains
unchanged, indicating S&P's expectation for modest recovery
(10%-30%; upper half of the range) in the event of a payment
default.
S&P expects the company to use the proceeds from the incremental
term loan to repay its senior unsecured notes due 2018 and pay down
the outstanding borrowings under its ABL revolver. S&P expects to
withdraw its ratings on the unsecured notes once they have been
repaid.
With annual revenue of about $2.7 billion, Coveris manufactures
flexible and rigid plastic and paper packaging for the food,
beverage, agriculture, and consumer products markets. The
company's plastic and paper packaging segments represent roughly
77% and 23%, respectively, of its 2015 revenue. "Our fair
assessment of Coveris' business risk profile reflects our
expectation that the company will enjoy increased geographic and
product-line diversity as it continues to focus on the relatively
stable food, beverage, agriculture, and consumer products end
markets," said S&P Global credit analyst Christopher Corey. "We
also expect that the company will continue to benefit from the
ongoing cost-reduction and procurement and manufacturing
improvements that are part of Sun Capital Partners Inc.'s
consolidation of its packaging businesses."
The stable outlook on Coveris reflects S&P's expectation that the
company will sustain adequate liquidity and improve its credit
measures as its restructuring costs taper and it realizes continued
synergies and operational improvements.
S&P could lower its ratings on Coveris if the company's operating
performance weakened significantly, its restructuring costs
remained elevated, or it pursued a large, debt-funded dividend
distribution or acquisition. Specifically, if such a scenario
caused the company's debt-to-EBITDA metric to weaken to about 7x or
more without the prospect for a quick recovery, S&P could lower its
ratings.
While unlikely in the next 12 months, S&P could consider upgrading
Coveris if the company were able to sustainably improve its credit
measures -- with a debt-to-EBITDA metric of less than 5x -- and
commit to maintain a less aggressive financial policy.
DEASY ASSOCIATES: Plan Outline Ok'd, Confirmation Hearing on Aug 4
------------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Massachusetts on July
12 granted in part the motion of Deasy Associates LLC to modify its
Chapter 11 plan of reorganization.
The court had previously confirmed the plan, under which a 100%
dividend will be paid to all creditors of Deasy Associates with
allowed claims.
In the same order, the bankruptcy court also approved the Deasy
Associates' disclosure statement detailing the restructuring plan.
Any holder of a claim or interest that has previously voted is
deemed to have accepted or rejected the latest version of the plan
unless it changes its votes by July 25. Deasy Associates will file
a certificate of vote by July 28.
A court hearing to consider confirmation of the modified plan is
scheduled for August 4, at 10:30 a.m. Objections to the plan are
due by July 25, at 4:30 p.m.
About Deasy Associates
Deasy Associates, LLC, owner of an 11.24-acre parcel of land in
Plymouth, Massachusetts, filed a Chapter 11 petition (Bankr. D.
Mass., Case No. 14-41882) on August 25, 2014.
The case is assigned to Judge Christopher J. Panos. The Debtor is
represented by Michael J. Tremblay, Esq., and Matthew W. McCook,
Esq.
DIANE ROSE MAESTRI: Has Until Aug. 5 to File Disclosure Statement
-----------------------------------------------------------------
The Hon. Robert G. Mayer of the U.S. Bankruptcy Court for the
Eastern District of Virginia has entered an order setting Aug. 5,
2016, as the deadline for Diane Rose Maestri to file a disclosure
statement and plan of reorganization.
A hearing to consider the approval of the Debtor's Disclosure
Statement will be on Sept. 6, 2016, at 11:00 a.m.
Diane Rose Maestri filed for Chapter 11 bankruptcy protection
(Bankr. E.D. Va. Case No. 15-12888) on Aug. 19, 2015.
DOROTHY HANNAH HAMILBURG: Creditor Wants Chapter 11 Trustee
-----------------------------------------------------------
Donato Errico is asking the U.S. Bankruptcy Court for the Central
District of California to order the appointment of a Chapter 11
trustee in the Chapter 11 case of Dorothy Hannah Hamilburg.
On Feb. 25, 2015, Mr. Errico filed a complaint against the Debtor
in the California Superior Court based on causes of action for: (1)
breach of written contract/anticipatory breach; (2) specific
performance; (3) quiet title, and (4) declaratory relief on Feb.
25, 2015, in connection with the Debtor's home in Malibu,
California, commonly known as 28926 Cliffside Drive, Malibu,
California. Less than a month later, the Debtor filed a voluntary
Chapter 11 petition.
Mr. Errico filed a proof of claim on June 15, 2015, seeking damages
in the amount of $9,333,830. The Debtor has filed an objection to
Errico's proof of claim, an evidentiary hearing on the claim will
commence on July 26, 2016.
According to Mr. Errico, the Debtor has filed monthly operating
reports during the Chapter 11 case, which reveal that the Debtor is
receiving money from an unknown source, but not depositing the
money in her DIP accounts.
According to the Debtor's Motion to Incur Debt, filed on July 12,
2016, the Debtor's home is valued in excess of $13 million -- with
equity above secured claims in excess of $10 million -- and her
estate includes an island in Maine worth in at least $1,900,000.
To date, the Debtor has made no effort to market these valuable
assets for the benefit of creditors.
Mr. Errico asserts that the appointment of a trustee is in the best
interests of creditors and the estate.
"Here, the Debtor is at least guilty of incompetence and
mismanagement, and perhaps (depending on what is actually happening
with un-deposited funds) intentional dishonesty and fraud. In
three operating reports alone, the Debtor states that she received
$11,000 more than was deposited in their DIP bank accounts, yet the
operating reports reflect no explanation of this discrepancy. This
type of financial management is exactly the type of conduct that
warrants the appointment of a trustee," Jeffrey S. Shinbrot, Esq.,
at Jeffrey S. Shinbrot, APLC, contends.
A hearing on the Motion is scheduled for Sept. 7, 2016, at 10:00
a.m.
Attorneys for Donato Errico:
Jeffrey S. Shinbrot, Esq.
JEFFREY S. SHINBROT, APLC
8200 Wilshire Bouleverad, Suite 400
Beverly Hills, CA 90211
Tel: (310) 659-5444
Fax: (310) 878-8304
E-mail: jeffrey@shinbrotfirm.com
- and -
Paul N. Sorrell
LAVELY & SINGER PROFESSIONAL CORP.
2049 Century Park East, Suite 2400
Los Angeles, CA 90067
Tel: (310) 556-3501
Fax: (310) 556-3516
Dorothy Hannah Hamilburg, also known as Hannah Hamilburg, sought
Chapter 11 protection (Bankr. C.D. Cal. Case No. 15-10528) on March
16, 2015. The Hon. Peter H. Carrol is the case judge.
E Z MAILING: Wants Plan Filing Period Extended to Aug. 31
---------------------------------------------------------
E Z Mailing Services, Inc., asks the U.S. Bankruptcy Court for the
District of New Jersey to extend (a) the period in which the
Debtors have the exclusive right to file a Chapter 11 plan through
and including Aug. 31, 2016; and (b) the period in which the
Debtors have the exclusive right to solicit acceptance of the plan
through and including Oct. 29, 2016.
The Court previously extended the Debtors' Exclusive Filing Periods
through July 31, 2016, and the Debtors' Exclusive Solicitation
Periods through Sept. 29, 2016.
The Debtors are undergoing major strategic changes to their
business model, and need more time to resolve contingencies,
negotiate a plan and prepare adequate information. After entry of
the First Exclusivity Order, the Debtors have undergone drastic
changes to their business and financial operations. In late May,
the Debtors terminated their relationship with their largest
customer, Forever 21. This reduced Debtors' monthly revenues by
approximately 35% off of historical levels. The Debtors also
terminated approximately 300 employees, representing 60% of the
Debtors' total workforce at the time the first exclusivity court
order was entered.
As part and parcel of those changes, the Debtors will auction
approximately 112 vehicles on July 28 to pay off amounts owed to
secured lenders and they are returning 30 additional vehicles that
are not subject to auction to various secured lenders for credit.
Amounts received at auction will dictate whether certain secured
creditors are partially paid or are paid off in full, which will
determine the extent and validity of each secured creditor class
and how their claims should be addressed under a plan of
reorganization. These facts need be resolved before Debtors can
prepare a plan of reorganization.
The Debtor's counsel can be reached at:
PORZIO, BROMBERG & NEWMAN, P.C.
Warren J. Martin Jr., Esq.
Michael J. Naporano, Esq.
Kelly D. Curtin, Esq.
Rachel A. Parisi, Esq.
100 Southgate Parkway
P.O. Box 1997
Morristown, New Jersey 07962
Tel: (973) 538-4006
Fax: (973) 538-5146
E-mail: wjmartin@pbnlaw.com
mjnaporano@pbnlaw.com
kdcurtin@pbnlaw.com
raparisi@pbnlaw.com
About E Z Mailing Services
E Z Mailing Services Inc. and United Business Freight Forwarders
are transportation logistics companies whose customers include
Macy's, Walmart, JC Penny and Forever 21.
After primary lender PNC Bank declared a default and demanded
immediate payment of $4.2 million, which resulted to a customer
freezing payment, E Z Mailing and UBFF filed Chapter 11 bankruptcy
petitions (Bankr. D.N.J. Case Nos. 16-10615 and 16-10616,
respectively) on Jan. 13, 2016. Ajay Aggarwal, the president,
signed the petitions. The Debtors each estimated assets and
liabilities in the range of $10 million to $50 million. Judge
Stacey L. Meisel presides over the cases.
Porzio, Bromberg & Newman, PC, serves as counsel to the Debtors.
Bederson LLP's Edward Bond is serving as CRO and crisis manager of
the Debtors.
EN BUENAS MANOS: Files First Amended Disclosure Statement
---------------------------------------------------------
En Buenas Manos Primary Care, Inc., filed with the U.S. Bankruptcy
Court for the Southern District of Texas its First Amended
Disclosure Statement explaining its First Amended Plan of
Reorganization.
The Debtor says that this Disclosure Statement is different from
the June 8 Disclosure Statement filed by the Debtor in that the
proposed Plan in the First Amended Disclosure Statement expressly
states the terms of the Debtor's Agreement with the Internal
Revenue Service as part of the Plan.
There is only one general unsecured claim in this case. Its
treatment is:
Class Description Impairment Treatment
No. 5
----------- ---------- ---------
General Unsecured Impaired Monthly Pmt = $56.06
Class Pmts Begin = Aug. 7,
2015
Pmts End = Aug. 7, 2021
Capital One Credit Card Interest rate % from the
Effective Date 3%
Account: Estimated percent of
claim paid = 100%
Amount $3,120.76
Payments and distributions under the Plan will be funded from the
net proceeds of the Debtor's ongoing business operations. The
administrative expense to the I.R.S. will be paid on the Effective
Date with funds advanced to sole shareholder and president Cynthia
Ramirez by family members.
A full-text copy of the First Amended Disclosure Statement dated
July 7, 2016, is available at:
http://bankrupt.com/misc/txsb15-50121-53.pdf
En Buenas Manos Primary Care, Inc. (Bankr. S.D. Tex. Case No.
15-50121) filed a Chapter 11 Petition on August 14, 2015, and is
represented by Carl Michael Barto, Esq., in Laredo, Texas. The
Debtor has been in the business of providing home health care since
2006.
ENERGY XXI: Seeks Plan Filing Deadline Extension to Oct. 11
-----------------------------------------------------------
BankruptcyData.com reported that Energy XXI filed with the U.S.
Bankruptcy Court a motion to extend the exclusive period during
which the Company can file a Chapter 11 plan and solicit
acceptances thereof through and including October 11, 2016 and
December 11, 2016, respectively. The motion explains, "The Debtors
are currently on track to achieve their restructuring goals of
eliminating substantially all of their funded indebtedness on an
accelerated basis and emerging from chapter 11 better positioned to
weather the challenges facing their offshore competitors. The
Debtors' Proposed Joint Chapter 11 Plan of Reorganization provides
for a recovery for a number of stakeholders, including general
unsecured creditors. The Debtors are scheduled to commence the
hearing on the confirmation of the Plan of Sep. 13, 2016 and expect
to have the support of the First Lien Agent and the Steering
Committee, the Ad Hoc Committee of Second Lien Noteholders, and
certain other important stakeholders. The Debtors are cautiously
optimistic that they will also have the support of the Official
Committee of Unsecured Creditors appointed in these chapter 11
cases by that time and are hopeful they can reach a global
compromise that all parties in interest support. In an abundance
of caution, however, the Debtors seek an extension of the
exclusivity periods in which the Debtors may file and solicit
acceptances of a chapter 11 plan of reorganization. The Debtors
believe that maintaining the exclusive right to file and solicit
votes on a plan of reorganization is critical to finalizing the
value-maximizing restructuring contemplated by the Plan. Extending
the exclusivity periods will afford the Debtors and their
stakeholders time to confirm the Plan, finalize the transactions
contemplated thereby, and proceed toward emergence from bankruptcy
in an efficient and organized fashion." The Court scheduled an
Aug. 11, 2016 hearing on the motion.
About Energy XXI, Ltd.
Energy XXI Ltd (OTCMKTS: EXXIQ) was incorporated in Bermuda on
July 25, 2005. With its principal operating subsidiary
headquartered in Houston, Texas, Energy XXI is engaged in the
acquisition, exploration, development and operation of oil and
natural gas properties onshore in Louisiana and Texas and in the
Gulf of Mexico Shelf.
Energy XXI Ltd and 25 of its affiliates filed on April 14, 2016,
bankruptcy petitions in the U.S. Bankruptcy Court for the Southern
District of Texas (Bankr. S.D. Tex. Lead Case No. 16-31928). The
petitions were signed by Bruce W. Busmire, the CFO. Judge Karen K.
Brown is assigned to the cases.
Energy XXI Ltd on April 14, 2016, also filed a winding-up petition
commencing an official liquidation proceeding under the laws of
Bermuda before the Supreme Court of Bermuda.
The Debtors sought bankruptcy protection after reaching a deal
With lenders on the filing of a restructuring plan that would
convert $1.45 billion owed to second lien noteholders into equity
of the reorganized company.
The Debtors have hired Vinson & Elkins LLP as counsel, Gray Reed &
McGraw, P.C. as special counsel, Conyers Dill & Pearman as Bermuda
counsel, Locke Lord LLP as regulatory counsel, PJT Partners LP as
investment banker, Opportune LLP as financial advisor, Epiq
Systems, Inc., as notice and claims agent.
Wilmer Cutler Pickering Hale and Dorr LLP represent an ad hoc
group of certain holders and investment advisors and managers for
holders of obligations arising from the 8.25% Senior Notes due
2018 issued pursuant to that certain Indenture, dated as of Feb.
14, 2011, by and among EPL Oil & Gas, Inc., certain of EPL's
subsidiaries, as guarantors, and U.S. Bank National Association,
as trustee.
The Office of the U.S. Trustee on April 26, 2016, appointed five
creditors of Energy XXI Ltd. to serve on the official committee of
unsecured creditors. The Committee retains Heller, Draper,
Patrick, Horn & Dabney LLC as its co-counsel, Latham & Watkins LLP
as its co-counsel, and FTI Consulting, Inc. as its financial
advisor.
ESSEX CRANE: Public Auction Set for July 28
-------------------------------------------
Wells Fargo Capital Finance LLC, in its capacity as agent under a
credit agreement dated May 14, 2014, with Essex Crane Rental Corp.
and Essex Holdings, will offer to sell, or cause to be sold, the
companies' property at a public auction sale in accordance with the
Uniform Commercial Code on July 28, 2016, at 10:00 a.m.
Specifically, Wells Fargo will auction off all the rights, title,
and interests of Essex Crane Rental Corp. located at 1110 Lake Cook
Road, Suite 220, Buffalo Grove, Illinois, and substantially all of
the companies' personal property.
The auction will be held at the offices of Goldberg Kohn Ltd., 55
East Monroe Street, Suite 3300, Chicago, Illinois.
Wells Fargo and certain lenders have made secured loans and other
financial accommodations to the companies pursuant to the credit
agreement. As of date, the outstanding amount of such obligations
is not less than $150,000,000. The Debtors are in default in the
payment of the obligations and in default of certain other
provisions of the credit agreement.
FORBES ENERGY: S&P Lowers CCR to 'D' on Missed Interest Payment
---------------------------------------------------------------
S&P Global Ratings lowered its corporate credit rating on
U.S.-based oilfield services company Forbes Energy Services Ltd. to
'D' from 'CCC-'.
At the same time, S&P lowered its issue-level rating on the
company's unsecured debt to 'D' from 'CCC-'. The recovery rating
remains '4', indicating S&P's expectation of average (30% to 50%,
upper half of the range) recovery in the event of a payment
default.
"The downgrade reflects our view that Forbes Energy's decision to
skip its interest payment on its 9% senior notes due 2019 and enter
into forbearance agreements with holders of its 9% senior notes and
its credit facility will lead to a default," said S&P Global
Ratings credit analyst Michael Tsai.
Despite ongoing negotiations with creditors, S&P do not expect the
company will make the interest payment within the next 30 days and
believe restructuring under a Chapter 11 bankruptcy is the most
likely outcome.
FORESIGHT ENERGY: Has Until Aug. 2 to Consummate Restructuring
--------------------------------------------------------------
On July 15, 2016, Foresight Energy LLC and Foresight Energy Finance
Corporation, together with Foresight Energy LP, certain other
subsidiaries of FELP and Foresight Energy GP LLC, entered into a
First Amendment to Transaction Support Agreement with certain
holders of the Issuers' 7.875% Senior Notes due 2021, which
extended the termination date for (i) failure to consummate a
global restructuring of the Partnership's indebtedness contemplated
by the Notes Support Agreement or (ii) any condition to the
exchange offer contemplated by the Notes Support Agreement becoming
incapable of being satisfied, to Aug. 2, 2016. The parties also
agreed to enter into documentation necessary to reflect certain
modifications to the terms of the Restructuring originally
contemplated by the Notes Support Agreement.
On July 17, 2016, Murray Energy Corp., Foresight Reserves LP,
Christopher Cline and Cline Resources and Development Company each
executed a joinder to the Notes Support Agreement, whereby such
parties agreed, among other things, to support and seek to
consummate the Restructuring.
Also on July 17, 2016, the Partnership entered into the Second
Amendment to Transaction Support Agreement with certain of the
lenders under the Partnership's Second Amended and Restated Credit
Agreement dated as of Aug. 23, 2013, which (A) extended the
termination date for failure to consummate the Restructuring
contemplated by the Lender Support Agreement to July 22, 2016, and
(B) permits discussions among the parties thereto and other key
constituencies regarding consensual modifications to the terms of
the transaction and appropriate steps in furtherance thereof. The
Initial Lender Extension Date may be extended to Aug. 5, 2016, or
such later date agreed to among the Partnership and the Consenting
Lenders constituting "Required Lenders" under the Credit Agreement,
subject to the Partnership agreeing to the terms of a modified
Restructuring in reasonable detail with certain of its secured and
unsecured lenders and FELLC paying each Consenting Lender that has
executed the amendment to the Lender Support Agreement an amount to
be agreed among FELLC and Required Lenders.
As previously disclosed, if an out of court restructuring is not
completed, it may be necessary for the Company to file a voluntary
petition for relief under Chapter 11 of the United States
Bankruptcy Code in order to implement a restructuring, or the
Company's creditors could force the Company into an involuntary
bankruptcy or liquidation.
"If a plan of reorganization is implemented in a bankruptcy
proceeding, holders of claims and interests with respect to, or
rights to acquire, our equity securities would likely be entitled
to little or no recovery, and those claims and interests would
likely be canceled for little or no consideration. If that were to
occur, we anticipate that all, or substantially all, of the value
of all investments in our partnership units would be lost and that
our unitholders would lose all or substantially all of their
investment. It is also likely that our other stakeholders,
including our secured and unsecured creditors, would receive
substantially less than the amount of their claims," the Company
stated in a regulatory filing with the Securities and Exchange
Commission.
Moreover, the Partnership extended the term of the existing
forbearance agreement that was entered into on Dec. 18, 2015, with
the Consenting Noteholders. As a result of the extension, the
forbearance period runs through Aug. 2, 2016, unless further
extended by the Consenting Noteholders in their sole discretion or
unless earlier terminated in accordance with its terms.
Foresight Receivables LLC, together with the Partnership, extended
the term of the forbearance agreement that was entered into on Jan.
27, 2016, with certain lenders under Foresight Receivables’
receivables financing agreement. As a result of the extension, the
forbearance period runs through Aug. 15, 2016, unless further
extended by the Consenting Securitization Lenders in their sole
discretion or unless earlier terminated in accordance with its
terms.
The extensions are intended to provide additional opportunity to
engage in discussions and negotiations with the holders of the
Notes and the Company's secured lenders.
About Foresight Energy
Foresight Energy mines and markets coal from reserves and
operations located exclusively in the Illinois Basin.
As of Dec. 31, 2015, the Company has invested over $2.3 billion to
construct state-of-the-art, low-cost and highly productive mining
operations and related transportation infrastructure. The Company
controls over 3 billion tons of proven and probable coal in the
state of Illinois, which, in addition to making the Company one of
the largest reserve holders in the United States, provides organic
growth opportunities. The Company's reserves consist principally
of three large contiguous blocks of uniform, thick, high heat
content (high Btu) thermal coal which is ideal for highly
productive longwall operations. Thermal coal is used by power
plants and industrial steam boilers to produce electricity or
process steam.
Foresight Energy reported a net loss attributable to limited
partner units of $39.47 million on $984.85 million of total
revenues for the year ended Dec. 31, 2015, compared to net income
attributable to limited partner units of $70.19 million on $1.10
billion of total revenues for the year ended Dec. 31, 2014.
As of March 31, 2016, Foresight Energy had $1.76 billion in total
assets, $1.78 billion in total liabilities and a $17.99 million
total partners' deficit.
Ernst & Young LLP, in St. Louis, Missouri, issued a "going
concern" qualification on the consolidated financial statements
for the year ended Dec. 31, 2015, noting that the Partnership is
in default of certain provisions of its long-term debt and capital
lease obligations, resulting in a working capital deficit as of
Dec. 31, 2015. These conditions raise substantial doubt about the
Partnership's ability to continue as a going concern.
* * *
The Troubled Company Reporter on March 22, 2016, reported that
Standard & Poor's Ratings Services said it lowered its corporate
rating on St. Louis-based Foresight Energy to 'D' from 'CCC-'.
As reported by the TCR on March 29, 2016, Moody's Investors
Service downgraded all ratings of Foresight Energy, including the
corporate family rating to 'Caa3' from 'Caa1'.
GENON ENERGY: Closes Sale of Illinois Gas Facility for $369-Mil.
----------------------------------------------------------------
GenOn Energy, Inc., through its subsidiary NRG Wholesale Generation
LP, completed on July 12, 2016, the sale of the Aurora Generating
Station, a 878 megawatt natural gas facility located in Aurora,
Illinois, to RA Generation, LLC for cash consideration of $369
million, which includes $4 million in adjustments for the PJM
2019/2020 Auction results and estimated working capital, which is
subject to further adjustment. Proceeds from the sale are expected
to be used for general corporate purposes.
About Genon
GenOn Energy, Inc. and its affiliates are wholesale power
generation subsidiaries of NRG, which is a competitive power
company that produces, sells and delivers energy and energy
services, primarily in major competitive power markets in the U.S.
GenOn is an indirect wholly-owned subsidiary of NRG. GenOn was
incorporated as a Delaware corporation on Aug. 9, 2000, under the
name Reliant Energy Unregco, Inc. GenOn Americas Generation and
GenOn Mid-Atlantic are indirect wholly owned subsidiaries of GenOn.
GenOn Americas Generation was formed as a Delaware limited
liability company on Nov. 1, 2001, under the name Mirant Americas
Generation, LLC. GenOn Mid-Atlantic was formed as a Delaware
limited liability company on July 12, 2000, under the name Southern
Energy Mid-Atlantic, LLC. GenOn Mid-Atlantic is a wholly-owned
subsidiary of NRG North America and an indirect wholly owned
subsidiary of GenOn Americas Generation. The Registrants are
engaged in the ownership and operation of power generation
facilities; the trading of energy, capacity and related products;
and the transacting in and trading of fuel and transportation
services.
GenOn Energy reported a net loss of $115 million in 2015 following
net income of $192 million in 2014. As of March 31, 2016, Genon
had $5.69 billion in total assets, $5.32 billion in total
liabilities and $373 million in total stockholders' equity.
* * *
As reported by the TCR on March 25, 2016, Moody's Investors Service
downgraded GenOn Energy, Inc.'s corporate family rating (CFR) and
probability of default (PD) rating to Caa2, from B3, and Caa2-PD
from B3-PD, respectively.
The TCR reported on May 26, 2016, that S&P Global Ratings 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.
HARRISON VICKERS: Incurs $7.24-Mil. Net Loss in Qtr. Ended Sept. 30
-------------------------------------------------------------------
Harrison, Vickers and Waterman Inc., filed with the U.S. Securities
and Exchange Commission its quarterly report on Form 10-Q/A,
disclosing a net loss of $7.24 million on $817,833 of net revenues
for the three months period ended Sept. 30, 2015, compared to a net
loss of $53,755 on $nil of net revenues for the same period in
2014.
The Company's balance sheet at Sept. 30, 2015, showed $1.65 million
in total assets, $11.84 million in total current liabilities,
$593,476 in total long term liabilities, $28,128 in non-controlling
interest, and total stockholders' deficit of $10.75 million.
The company's ability to continue as a going concern will be
dependent upon them receiving additional third party financing to
build its new World of Beer franchises and to fund the business at
least throughout the next twelve months in the new fiscal year.
Ultimately, the company's ability to continue is dependent upon the
achievement of profitable operations. There is no assurance that
further funding will be available at acceptable terms, if at all,
or that they will be able to achieve profitability. These
conditions raise substantial doubt about the ability to continue as
a going concern.
A copy of the Form 10-Q/A is available at:
https://is.gd/ANsVY4
North Palm Beach, Fla.-based Harrison Vickers and Waterman Inc.
(OTCBB: HVCW)'s main segment of business is the development and
operation of World of Beer franchise locations. The Company,
through its subsidiary Attitude Beer Holding Co., owns a 51%
interest in a World of Beer franchise tavern and restaurant located
in West Hartford, Connecticut.
INSTITUTO MEDICO: Patient Care Ombudsman Issues Monitoring Report
-----------------------------------------------------------------
Dr. Francisco J. Parga Miranda, as sub-advocate of the Office of
Puerto Rico's Patient Care Ombudsman, has issued a report to inform
of the quality monitoring as of July 5, 2016. A copy of the
report, only available in Spanish, can be downloaded at
https://is.gd/GYG8zT
About Instituto Medico
Instituto Medico del Norte, Inc. -- aka Centro Medico Wilma N.
Vazquez, aka Hospital Wilma N. Vazquez Skill Nursing Facility of
Centro Medico Wilma N. Vazquez -- sought protection under Chapter
11 of the Bankruptcy Code on Oct. 30, 2013 (Bankr. D.P.R. Case No.
13-08961). The case is assigned to Judge Mildred Caban Flores.
The Debtor scheduled $20,843,692 in total assets and $20,107,642 in
total liabilities. The Debtor, however, said its real property has
a book value of $16,000,000 and personal property is worth
$6,105,979.
The Debtor tapped as counsel Fausto David Godreau Zayas, Esq., and
Rafael A. Gonzalez Valiente, Esq., at Latimer Biaggi Rachid &
Godreau, in San Juan, Puerto Rico. Luis B. Gonzalez & Co. CPA's
P.S.C. serves as accountant.
The U.S. Trustee for the District of Puerto Rico has appointed Dr.
Carlos Mellado (b/t Lcda Dinorah Collazo Ortiz) as patient care
ombudsman.
* * *
MCS Advantage, Inc., MCS Life Insurance Company, Medical Card
System, Inc., have filed a motion to convert the bankruptcy case to
a liquidation under Chapter 7.
INVERRARY RESORT HOTEL: Taps Vacation Resorts as Property Manager
-----------------------------------------------------------------
Inverrary Resort Hotel Condominium Association, Inc., seeks
authority from the U.S. Bankruptcy Court for the Southern District
of Florida to employ Vacation Resorts Development, Inc. as property
manager to the Debtor, nunc pro tunc to May 31, 2016.
Inverrary Resort Hotel requires Vacation Resorts to be the manager
of the Debtor's property located in Lauderhill, Florida, known as
The Inverrary Resort Hotel.
Prior to the Petition Date, specifically, on January 1, 2014,
Vacation Resorts and Debtor entered into a management agreement
wherein Vacation Resorts agreed to manage the Property, namely
maintaining the common elements and providing on-site security. In
return, Debtor agreed to reimburse Vacation Resorts for labor and
other expenses associated with maintenance of and the providing of
security associated with the Property's common elements, as well as
pay Vacation Resorts a monthly management fee for its services.
Vacation Resorts will be paid $45,515.74 per month for labor
reimbursement for maintaining the Property, $4,083.00 each month
for security, and $3,334.00 as the monthly management fee.
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 Debtor and
its estate.
Vacation Resorts can be reached at:
Julian Ramirez
VACATION RESORTS DEVELOPMENT
3501 Inverrary Blvd., Unit 112
Lauderhill, FL 33319
About the Inverrary Association
The Inverrary Resort Hotel Condominium Association, Inc., Nirvana
Inverrary Lofts, Inc., and Alrames S.A.de C.V. Corp. filed
voluntary chapter 11 petitions (Bankr. S.D. Fla. Case Nos.
16-17792, 16-17799 and 16-17802) on May 31, 2016. The three Debtors
are represented in their jointly administered cases by Jason
Slatkin, Esq., at Slatkin & Reynolds, P.A., in Ft. Lauderdale. At
the time of the filings each single asset real estate Debtor
estimated its assets at less than $50,000 and its debts at more
than $1 million.
J&C OILFIELD: Wants Cash Collateral Use for $26K Monthly Expenses
-----------------------------------------------------------------
J&C Oilfield Rentals, LLC asks the U.S. Bankruptcy Court for the
Western District of Louisiana for authorization to use cash
collateral.
The Debtor relates that Citizens Progressive Bank and Integrity
Factory & Consulting, Inc. have a blanket security interest in the
cash collateral.
The Debtor tells the Court that it is in need of the use of the
proceeds of its accounts receivables as well as the funds that are
still in its bank account, which are the cash collateral of
Citizens Progressive Bank and Integrity Factory & Consulting. The
Debtor further tells the Court that without the use of cash
collateral, it will be unable to continue business operations and
will be forced to liquidate its business.
The Debtor proposes to offer a post petition replacement lien to
Citizens Progressive Bank and Integrity Factory & Consulting of the
same extent as their prior security security interests in the
Debtor's accounts receivable. The Debtor further proposes to pay
Citizens Progressive Bank an amount of $10,000 on a monthly basis,
as adequate protection.
The Debtor's proposed monthly Budget provides for total
expenditures amounting to $26,155.95.
A full-text copy of the Debtor's Motion, dated July 18, 2016, is
available at https://is.gd/OSkqEU
A full-text copy of the Debtor's proposed Budget, dated July 18,
2016, is available at https://is.gd/1NsV7i
Citizens Progressive Bank is represented by:
Gary Sanford, Esq.
P.O. Box 1689
Columbia, LA 71418
J&C Oilfield Rentals, LLC, filed a chapter 11 petition (Bankr. W.D.
La. Case No. 16-80783) on July 20, 2016, and is represented by
Bradley L. Drell, Esq., at Gold, Weems, Bruser, Sues & Rundell.
The Debtor disclosed $686,347 in assets and $2.90 million in
liabilities at the time of the filing.
JAMES HARDIE: Moody's Rates Proposed $75MM Notes Add-On 'Ba1'
-------------------------------------------------------------
Moody's Investors Service assigned a Ba1 rating to James Hardie
International Finance Limited proposed $75 million add-on to the
company's existing 5.875% senior unsecured notes due 2023, proceeds
of which will be used for general corporate purposes. James
Hardie's Ba1 Corporate Family Rating, Ba1-PD Probability of
Default, Ba1 rating on the senior unsecured notes, and
Speculative-Grade Liquidity rating of SGL-2 are unchanged. The
rating outlook is stable.
These rating actions were taken for James Hardie International
Finance Limited:
Proposed $75 million senior unsecured notes add-on, assigned Ba1
(LGD4).
RATINGS RATIONALE
The Ba1 Corporate Family Rating benefits from James Hardie's
relatively conservative balance sheet management, financial
policies that are now expected to be more aligned with creditor
interests, and deep-rooted industry expertise combined with solid
operating strategy. Further strengthening the credit risk profile
is the expected continued improvement in the company's already
strong credit metrics over the next 12-18 months. James Hardie's
financial policy sets a maximum of 2x net leverage ratio. Moody's
projects debt to EBITDA to be maintained below 1.5x and
EBITA/interest expense above 10x over the next 12-18 months. In
addition, the reputation and conservative operating strategy that
both have allowed James Hardie to grow into one of the largest
fiber cement producers in the world, makes Moody's comfortable in
the company's ability to manage its asbestos related liabilities on
an ongoing basis.
However, the company's exposure to the asbestos liability remains a
risk factor. Moody's considers the asbestos liability to be
mitigated by the terms of Amended & Restated Final Funding
Agreement ("AFFA") and treat it as a non-debt liability. However,
a certain percentage of the company's operating cash flows must be
put toward the asbestos fund thereby limiting the cash flow
available for the company's core business. At 3/31/2016, the
undiscounted value of the asbestos liability was close to $767
million. Further, the asbestos liability combined with dividend
distributions and share repurchases have led to negative tangible
net worth and negative free cash flow generation. Going forward,
Moody's anticipates the company to generate free cash flow as it
stops paying special dividends and maintains a common dividend with
an annual payout of around 50-70% of net income.
James Hardie's Speculative-Grade Liquidity ("SGL") rating of SGL-2
indicates that the company's liquidity profile is good over the
next 12 months. The SGL rating takes into consideration internal
liquidity, external liquidity, covenant compliance, and alternative
liquidity sources. James Hardie's cash flow generation from
operations has always been relatively strong and it is able to
cover its operating cash needs from internally generated cash.
However, the company's elevated CAPEX in fiscal 2014 and 2015 and
special dividends in fiscal 2015 and 2016 have resulted in negative
free cash flow. Going forward, James Hardie's free cash flow is
anticipated to be positive as it will primarily have maintenance
CAPEX of around $80 - $100 million vs. $276 million of CAPEX in
fiscal 2015 and $115 million in 2014. Dividend payouts are
anticipated to be between 50-70% of net income for each of the next
two years vs. $247 million in fiscal 2016 and $390 million in
fiscal 2015. Cash balance is maintained at around $100 million.
In addition to liquidity provided by cash flow generation, James
Hardie also has access to a $500 million unsecured revolving credit
facility (unrated by Moody's) that matures in 2020. At 3/31/2016,
the company had $190 million drawn and the remainder available for
future advances. The company is anticipated to use the revolving
credit facility for seasonal needs on an ongoing basis. The
unsecured credit facility is governed by two maintenance covenants:
interest coverage and debt leverage. James Hardie has to maintain
an interest coverage ratio at 3.25x (at 3/31/16 the company was at
17.2x per the credit agreement calculation), leverage ratio has to
be less than 3x (at 0.93x at 3/31/16). Looking forward for the
next 12 to 18 months, James Hardie is expected to have ample room
under its covenants. James Hardie also has good alternative
liquidity as all of its debt is unsecured.
The stable outlook reflects our view that the company's financial
performance is expected to continue to improve and that James
Hardie will maintain a relatively conservative approach toward
shareholder distributions.
The ratings could be upgraded if James Hardie substantially reduces
its asbestos liability. The ratings upgrade will also consider the
company's business profile (narrow product offering, exposure to
cyclical end markets) and minimal free cash flow generation both of
which are limited when compared to many investment-grade issuers at
the lower end of the Baa ratings range.
The ratings could be downgraded if the company changes its
financial policy to be more shareholder friendly. Further, any
negative change in the asbestos liability could result in a
downgrade. Also, EBIT/interest expense of less than 5x on a
sustained basis would be considered a trigger for downgrade.
The principal methodology used in these ratings was Global
Manufacturing Companies published in July 2014.
James Hardie International Finance Limited is a wholly-owned
subsidiary of James Hardie Industries plc, domiciled in Ireland, is
a global manufacturer of fiber-cement products and systems for
internal and external building construction applications primarily
sold in the United States, Australia, New Zealand and the
Philippines. The company's revenues and net income for fiscal 2016
ended March 31, 2016 were $1.7 billion and $244 million,
respectively.
JAMMIN JAVA: Posts $1.49-Mil. Net Loss in April 30 Quarter
----------------------------------------------------------
Jammin Java Corp. filed its quarterly report on 10-Q for the
quarter ending Apr. 30, 2016, with the U.S. Securities and Exchange
Commission.
The Company reported a net loss of $1.49 million on $2.73 million
of net sales for the three months period ended April 30, 2016,
compared with a net loss of $1.20 million on $2.58 million of net
sales for the same period in 2015.
The Company incurred a net loss of $1,487,569 for the three months
ended April 30, 2016, and has an accumulated deficit since
inception of $30,733,319. The Company has a history of losses and
has only recently begun to generate revenue as part of its
principal operations. These conditions raise substantial doubt
about the Company’s ability to continue as a going concern. The
operations of the Company have primarily been funded by the sale of
its common stock. The Company will, in the future, need to secure
additional funds through future equity sales or other fund raising
activities. No assurance can be given that additional financing
will be available, or if available, will be on terms acceptable to
the Company.
The Company’s ability to meet its obligations in the ordinary
course of business is dependent upon its ability to sell its
products directly to end-users and through distributors, establish
profitable operations through increased sales and decreased
expenses, and obtain additional funds when needed. Management
intends to increase sales by increasing the Company’s product
offerings, expanding its direct sales force and expanding its
domestic and international distributor relationships.
The Company's balance sheet at April 30, 2016, showed $2.39 million
in total assets, $6.53 million in total liabilities and total
stockholders' deficit of $4.14 million.
A copy of the Form 10-Q filed with the U.S. Securities and Exchange
Commission is available at:
https://is.gd/UmeNm3
Denver-based Jammin Java Corp. (OTC QB: JAMN) provides premium,
artisan roasted coffee to the grocery, retail, online, service,
hospitality, office coffee service and big box store industry.
Under its exclusive licensing agreement with 56 Hope Road, the
company continues to develop its coffee lines under the Marley
Coffee brand.
Squar, Milner, Peterson, Miranda & Williamson, LLP, expressed
substantial doubt about the Company's ability to continue as a
going concern, citing that the Company has incurred operating
losses from inception, has an accumulated deficit approximating
$24.0 million, and has only recently generated revenues from its
principal operations.
Jammin Java Corp. reported a net loss of $10.3 million on $8.90
million of net revenue for the fiscal year ended Jan. 31, 2015,
compared with a net loss of $6.7 million on $5.64 million of net
revenue last year.
The Company's balance sheet at Jan. 31, 2015, showed $2.96 million
in total assets, $3.05 million in total liabilities and total
stockholders' deficit of $93,800.
JOURNEY HOSPICE CARE OF HOUMA: Claims Bar Date Sought
-----------------------------------------------------
The Bankruptcy Administrator for the Northern District of Alabama
on July 14, 2016, filed a motion asking the U.S. Bankruptcy Court
for the Northern District of Alabama to enter an order setting a
bar date for filing proofs of claim and equity security interests
in Journey Hospice Care of Houma, Louisiana, LLC's Chapter 11
case.
The Bankruptcy Administrator says a bar date for filing proofs of
claim and equity security interests is necessary to allow the
Debtor to proceed with the administration of its bankruptcy case
and to pursue confirmation and consummation of a Chapter 11 plan.
The Bankruptcy Administrator can be reached at:
J. THOMAS CORBETT
Bankruptcy Administrator
Northern District of Alabama
Robert S. Vance Federal Building
1800 Fifth Avenue, North
Birmingham, Alabama 35203
Tel: (205) 714-3830
About Journey Hospice Care
Journey Hospice Care of Houma, Louisiana, LLC sought protection
under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Ala. Case No.
16-02556) on June 23, 2016. The petition was signed by April H.
Rice, managing member.
The case is assigned to Judge Tamara O Mitchell.
At the time of the filing, the Debtor disclosed $486,081 in assets
and $6.63 million in liabilities.
The Debtor is operating its businesses and managing its assets as
debtor-in-possession pursuant to Sections 1107 and 1108 of the
Bankruptcy Code. No trustee or examiner has been appointed in the
Debtor's bankruptcy case.
KAREN ILENE CARTER: No Funds Available for Unsecureds
-----------------------------------------------------
Karen Ilene Carter filed with the U.S. Bankruptcy Court for the
Western District of Washington a Disclosure Statement, stating that
there are no funds available to the general unsecured creditors -
personal debts of the Debtor.
The hearing at which the Court will determine whether to confirm
the Plan will take place on Oct. 21, 2016, at 9:30 a.m. Objections
to the confirmation of the Plan must be filed with the Court and
served upon Debtor by Oct. 14, 2016. A conference of attorneys
regarding objections to the Plan of Reorganization will be held on
Oct. 17, 2016, at 10:00 a.m.
The Debtor's source of income for personal expenses comes from
Social Security benefits and from her father for the father's
personal maintenance and care. Payment of mortgages, taxes,
maintenance and insurance for the rental properties comes from the
rent received by the individual properties.
The total value of Debtor assets is $1,854,299 in real property and
$220,793 in personal property. Against those assets are $2,195,790
in secured claims, $100 in unsecured priority claims, $451,564 in
general unsecured claims and $16,383 in exemptions.
The total general unsecured claims (including unsecured portion of
the secured claims) is $1,185,630.
The Disclosure Statement dated June 30, 2016, is available for free
at http://bankrupt.com/misc/wawb15-14301-80.pdf
The Disclosure Statement was filed on behalf of the Debtor by her
counsel:
David Carl Hill, Esq.
Jerry Cahan, Esq.
Law Office Of David C. Hill
2472 Bethel Road SE Suite A
Port Orchard, WA 98366
Tel: (360) 876-5015
E-mail: office@hilllaw.com
Karen Ilene Carter on July 15, 2015, filed a voluntary petition for
relief under Chapter 13 of the Bankruptcy Code. At the time the
case was filed there was a question whether the unsecured debt
might exceed the jurisdictional limits for Chapter 13. On Sept.
23, 2015, the Debtor filed a motion to convert the case from
Chapter 13 to Chapter 11. On Oct. 19, 2015, the Court issued an
order converting the case to Chapter 11 (Bankr. W.D. Wash. Case No.
15-14301). The Debtor has remained in possession of her assets and
is now operating as debtor-in-possession.
KENNETH BAKER: $1.71MM Sale of NY Property to Simpsons Approved
---------------------------------------------------------------
Judge Sean H. Lane on July 15, 2016, entered an order authorizing
debtor Kenneth Baker to:
(i) use, up to $65,000 "buying out" the existing residents at
his real property located at 107 West 122nd Street, New York, New
York, pursuant to the Residential Contract of Sale, dated Jan. 29,
2016;
(ii) sell to Clinton Simpson and Nicole Simpson his and his
estate's interests in the Property for $1.71 million pursuant to
the Contract; and
(iii) pursuant to 11 U.S.C. Sec. 365(a), assume the Contract.
Hearings were held on April 7, 2016 and April 21, 2016.
The Debtor said it marketed the Property and Contract's sale price
represents the highest and best offer for the Property.
The Purchase Price exceeds the amounts of the claims that are
secured by the known liens and encumbrances against the Property.
The Debtor's Homestead Exemptions is allowed and the Debtor may
make an advance payment to himself on account of the Homestead
Exemptions from the proceeds of the Sale. The Debtor is authorized
to pay himself the sum $75,000 as a partial advance payment on
account of his Homestead Exemption.
In its Motion, the Debtor said that it marketed the Property for
more than one year. Those efforts were unsuccessful until the
Debtor retained Emerald Plains Realty Corp., late last year.
Emerald located a purchaser, ready willing and able to buy the
Property at a favorable price. The terms of the Contract are:
* Seller: the Debtor
* Buyers: Clinton Simpson and Nicole Simpson persons wholly
unaffiliated or connected to the Debtor
* Purchase Price: $1,710,000, all cash. A $190,000 down-payment
was received shortly, with the balance due at Closing
* Closing Date: On or about March 15, 20162
* Contingencies: Mortgage contingency - satisfied
* Break-Up Fee: None
* Misc Term: Conditioned on the Buyers a.) getting a firm
mortgage commitment; and b.) seeing "clean title" the Debtor will
use up to $65,000 of the deposit to "buy out" the Property's
existing occupants, so the Property can be delivered vacant.
About Kenneth Baker
Kenneth Baker owns the real property located at 107 West 122nd
Street, New York, New York, which type is commonly referred to as a
Single Room Occupancy ("SRO").
Kenneth Baker filed a Chapter 11 petition (Bankr. S.D.N.Y. Case No.
16-10401) on Feb. 23, 2016, to preserve its ability to sell the
Property.
The Debtor has been continued in the possession of his property and
operating his affairs as Debtor in possession, pursuant to 11
U.S.C. Sec. 1108 and 1109.
No committee of unsecured creditors has been appointed in this
case
Attorneys for the Debtor:
WAYNE GREENWALD, P.C.
Kenneth Baker
475 Park Avenue South - 26th Floor
New York, New York 10016
212-983-1922
KEVIN BOUTIN: Court Approves Outline of Chapter 11 Plan
-------------------------------------------------------
A U.S. bankruptcy judge on July 14 approved the outline of the
Chapter 11 plan of Kevin Boutin, owner of occupational therapy
clinic Tri-Vista Rehab, Inc.
Judge Jason Woodard of the U.S. Bankruptcy Court for the Northern
District of Mississippi gave the thumbs-up to the disclosure
statement after finding that it contains "adequate information."
Kevin Boutin sought Chapter 11 protection (Bankr. N.D. Miss. Case
No. 13-14699) on Nov. 6, 2013. Mr. Boutin is the 100% owner of
Tri-Vista Rehab, Inc., an occupational therapy clinic he formed in
2001.
KIRKLAND BROS: Cypress-Fairbanks ISD Objects to Plan
----------------------------------------------------
Cypress-Fairbanks Independent School District and Harris County
filed an objection to Kirkland Bros., Inc.'s First Amended Combined
Disclosure Statement and Plan of Reorganization.
The Taxing Authorities hold pre-petition claims in the estimated
amount of $8,369.06 for property taxes for tax year 2015 on the
Debtor's property. The property taxes were duly assessed in
accordance with the laws of the State of Texas and constitute
valid, liquidated, secured claims against the Debtor's property
entitled to priority over other secured claims.
The Taxing Authorities object to the treatment under the Plan for
these reasons:
a. The Plan fails to provide for the retention of the Taxing
Authorities' pre- and postpetition liens on the collateral.
The Plan should not be confirmed unless and until it
Specifically provides for the Taxing Authorities' pre- and
post-petition liens to remain on the collateral until the
claims, including interest thereon, if applicable, are
paid in full;
b. The Plan fails to provide a provision should default in
payment under the plan occur. The Plan should provide for
a provision of default; and
c. The Taxing Authorities objects to the Plan to the extent
it does not address payment of post-petition taxes. The
Plan should provide that the Taxing Authorities'
Administrative expense claims need not be filed for the
2016 taxes and the Debtor should be required to pay the
post-petition taxes as billed.
A copy of the objection is available for free at:
http://bankrupt.com/misc/txwb15-70099-198.pdf
The Counsel for Cypress-Fairbanks Independent School District and
Harris County can be reached at:
Linebarger Goggan Blair & Sampson, LLP
John P. Dillman, Esq.
Tara L. Grundemeier, Esq.
P.O. Box 3064
Houston, Texas 77253-3064
Tel: (713) 844-3478
Fax: (713) 844-3503
E-mail: john.dillman@lgbs.com
tara.grundemeier@lgbs.com
Kirkland Bros., Inc. (Bankr. W.D. Tex., Case No. 15-70099) filed
a Chapter 11 Petition on July 15, 2015, with assets estimated at
$1 million to $10 million and liabilities at $1 million to $10
million. The Debtor's primary business is in the leasing and
selling of trucks and trailers.
KIRKLAND BROS: Security Bank Objects to Confirmation of Plan
------------------------------------------------------------
Security Bank, a secured creditor of the Kirkland Bros., Inc.
estate and a Class 5 Claimant under Kirkland Bros.'s Revised First
Amended Combined Disclosure Statement and Plan of Reorganization
dated June 8, 2016, filed an objection to confirmation the plan.
As reported by the Troubled Company Reporter on June 23, 2016,
Judge Ronald B. King of the U.S. Bankruptcy Court for the Western
District of Texas approved the First Amended Disclosure Statement.
The Plan proposes to pay general unsecured creditors 100% of their
claims over a eight-year term to be paid on a monthly basis,
beginning July 15, 2016, at 3.0% interest. The Plan calls for 84
monthly payments each of $2,215.67.
Security Bank's objection is made to, among other things:
a. the lack of payments during the first three months of the
plan. There is no justification for not making payments
during this time;
b. the proposed payment of $11,020.67 as this results in an
amortization that is far too long and in numerous
situations, exceeds the term of the leases serving as
collateral as well as the useful life of the trucks
serving as collateral. The plan payments to Security Bank
should be increased to more appropriately match the life
and value of the collateralized leases and vehicles. The
payout is simply too long for the type of collateral and
the age of the specific collateral securing it; and
c. the proposed interest rate of 5%, claiming that the rate
does not reflect current market rates. According to the
Debtor's own schedules, there is substantial equity to pay
a rate of 6.75% which is the same rate of interest the
plan provides to pay other similarly situated creditors
for similar type loans to the Debtor.
A copy of the objection is available for free at:
http://bankrupt.com/misc/txwb15-70099-202.pdf
Security Bank's counsel can be reached at:
LAW OFFICES OF WILLIAM B. KINGMAN, P.C.
William B. Kingman, Esq.
4040 Broadway, Suite 450
San Antonio, TX 78209
Tel: (210) 829-1199
Fax: (210) 821-1114
Website: http://www.kingmanlaw.com/
Kirkland Bros., Inc. (Bankr. W.D. Tex., Case No. 15-70099) filed a
Chapter 11 Petition on July 15, 2015, with assets estimated at
$1 million to $10 million and liabilities at $1 million to $10
million. The Debtor's primary business is in the leasing and
selling of trucks and trailers.
KIRKLAND BROS: Sheldon Independent, Et Al. Objects to Plan
----------------------------------------------------------
Sheldon Independent School District, et al., filed an objection to
Kirkland Bros., Inc's First Amended Combined Disclosure Statement
and Plan of Reorganization dated May 19, 2016.
The Taxing Entities are political subdivisions of the State of
Texas, authorized and required by the Constitution and laws of the
State of Texas to levy and collect ad valorem taxes and assessments
on taxable property within its boundaries in order to discharge
their statutory duties. They filed claims for taxes, penalties,
and interest assessed pre-petition for tax years 2014 and 2015
together with interest at the applicable non-bankruptcy rate until
paid in full. The claims are secured by paramount prior perfected
continuing enforceable liens on the Property, as provided by
Sections 32.01 and 32.05(b) of the Texas Property Tax Code.
The Taxing Entities object to the confirmation of the Plan to the
extent it:
a. fails to provide for the retention of their tax liens
until their claims are paid in full;
b. unfairly discriminates against the Taxing Entities by
providing disparate treatment to similarly situated
creditors; and
c. fails to provide for the payment of the 2016 taxes in the
ordinary course of business.
A copy of the objection is available for free at:
http://bankrupt.com/misc/txwb15-70099-201.pdf
The counsel for Spring Branch Independent School District and the
City of Houston can be reached at:
PERDUE, BRANDON, FIELDER, COLLINS & MOTT, L.L.P.
Owen M. Sonik, Esq.
1235 North Loop West, Suite 600
Houston, Texas 77008
Tel: (713) 862-1860
Fax: (713) 862-1429
Kirkland Bros., Inc. (Bankr. W.D. Tex., Case No. 15-70099) filed
a Chapter 11 Petition on July 15, 2015, with assets estimated at
$1 million to $10 million and liabilities at $1 million to $10
million. The Debtor's primary business is in the leasing and
selling of trucks and trailers.
LENNAR BUFFINGTON: Court Okays Disclosure Statement
---------------------------------------------------
The Hon. H. Christopher Mott of the U.S. Bankruptcy Court for the
Western District of Texas has entered an order approving Lennar
Buffington Stonewall Ranch, LP.'s Disclosure Statement.
On June 27, 2016, the Court conducted a hearing to approve the
Disclosure Statement dated May 24, 2016, for the Plan of
Reorganization also dated May 24, 2016, filed by the alleged Debtor
and any objections thereto. The Debtor filed an Amended Disclosure
Statement dated July 5, 2016, for its Amended Plan of
Reorganization dated July 5, 2016. The Court approved the Amended
Disclosure Statement.
UDF Development Funding III, LP, filed an involuntary Chapter 11
bankruptcy petition for Austin, Texas-based Lennar Buffington
Stonewall Ranch, LP (Bankr. W.D. Tex. Case Number 15-11548) on Nov.
30, 2015, Judge Christopher H. Mott presides over the case.
Richard W. Ward, Esq., who has an office in Plano, Texas, serves as
UDF Development's counsel.
LENNAR BUFFINGTON: No Distribution for Unsecureds Under Plan
------------------------------------------------------------
Lennar Buffington Stonewall Ranch, LP, filed with the U.S.
Bankruptcy Court for the Western District of Texas its First
Amended Joint Disclosure Statement in support of its Joint Plan of
Reorganization with creditors United Development Funding, LP and
United Development Funding III, L.P.
According to the First Amended Joint Disclosure Statement, Class 7
- General Unsecured Claimants will receive no distribution under
the Plan.
The Plan will transfer the Debtor's property, which includes the
Debtor's real property, to the Liquidating Trust. The Liquidating
Trust will attempt to consummate a sale consistent with contract
that the Debtor has received. The Liquidating Trustee will be
Scott W. O'Brien, a partner in the law firm of Hallett & Perrin.
Mr. O'Brien has provided and continues to provide legal services to
UDF and its affiliates. In his capacity as liquidating trustee Mr.
O'Brien will owe the duties of a trustee to the beneficiaries of
the Liquidating Trust, subject to the terms of the Plan. If a sale
cannot be closed according to the terms of the contract, the
Liquidating Trustee will seek to sell the Real Property for an
amount in excess of the amount of $4,131,673.84 (the amount of
distributions for administrative expenses, and claims in Classes 1,
2 and 3), subject to consent of UDF to a sale at such other price.
In the event that Mr. O'Brien is not able to serve, UDF will
nominate another qualified individual.
A copy of the Debtor's First Amended Joint Disclosure Statement is
available for free at http://bankrupt.com/misc/txwb15-11548-64.pdf
The hearing to be held by the Court to consider confirmation of the
Plan is set for Aug. 23, 2016, at 10:00 a.m. Central Time.
The Debtor's First Amended Joint Disclosure Statement was filed by
its counsel:
BARRON & NEWBURGER, P.C.
Barbara M. Barron, Esq.
Stephen W. Sather, Esq.
1212 Guadalupe, Suite 104
Austin, TX 78701
Tel: (512) 476-9103 Ext. 220
Fax: (512) 476-9253
E-mail: Bbarron@bn-lawyers.com
Ssather@bn-lawyers.com
The attorney for United Development Funding, LP, and United
Development Funding III, LP, can be reached at:
Richard W. Ward, Esq.
6860 N. Dallas Parkway, Suite 200
Plano, TX 75024
Tel: (214) 220-2402
Fax: (972) 499-7240
UDF Development Funding III, LP, filed an involuntary Chapter 11
petition against Lennar Buffington Stonewall Ranch, LP (Bankr. W.D.
Tex. Case No. 15-11548) on Nov. 30, 2015. Judge Christopher H.
Mott presides over the case. Richard W. Ward, Esq., who has an
office in Plano, Texas, serves as the Petitioner's counsel.
LIFE PARTNERS: Transparency Plan Confirmation Hearing on Aug 29
---------------------------------------------------------------
A bankruptcy judge overseeing the Chapter 11 cases of Life Partners
Holdings, Inc., and its affiliates approved the outline of the
restructuring plan proposed by Transparency Alliance LLC for the
companies.
Judge Russell Nelms of the U.S. Bankruptcy Court for the Northern
District of Texas gave the thumbs-up to the disclosure statement
after finding that it contains "adequate information," allowing
Transparency Alliance to begin soliciting votes from creditors for
the plan.
Transparency Alliance has until July 22 to serve the solicitation
package and until August 25 to file a voting report. Ballots
accepting or rejecting the plan must be delivered to Prime Clerk
LLC, Life Partners' balloting agent, no later than 5:00 p.m.
(prevailing Central Time) on August 22.
The bankruptcy judge will hold a hearing on August 29, at 9:30 a.m.
(prevailing Central Time), to consider confirmation of the plan.
Objections to the plan are due by August 22, at 5:00 p.m.
About Life Partners Holdings
Headquartered in Waco, Texas, Life Partners Holdings, Inc. --
http://www.lphi.com/-- is the parent company engaged in the
secondary market for life insurance, commonly called "life
settlements." Since its incorporation in 1991, Life Partners,
Inc., has completed over 162,000 transactions for its worldwide
client base of over 30,000 high net worth individuals and
institutions in connection with the purchase of over 6,500
policies totaling over $3.2 billion in face value.
LPHI is a publicly traded company incorporated in Texas and its
common stock has been delisted from the NASDAQ (formerly trading
under the symbol LPHI).
Life Partners Holdings sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. N.D. Tex. Case No. 15-40289) on Jan. 20,
2015.
The case is assigned to Judge Russell F. Nelms. J. Robert
Forshey, Esq., at Forshey & Prostok, LLP, serves as counsel to the
Debtor.
LPHI disclosed $2,406,137 in assets and $52,722,308 in liabilities
as of the Chapter 11 filing.
The official committee of unsecured creditors formed in the case
tapped Munsch Hardt Kopf & Harr, P.C., as counsel.
Tracy A. Bolt of BDO USA, LLP was named as examiner for the
Debtor's case. At the behest of the U.S. Securities and Exchange
Commission, the U.S. Trustee, and the Creditors Committee, the
Court ordered the appointment of a Chapter 11 trustee. On March
13, 2015, H. Thomas Moran II was appointed as Chapter 11 trustee
in LPHI's case. The trustee is represented by Thompson & Knight
LLP.
The Chapter 11 trustee signed Chapter 11 bankruptcy petitions for
LPHI's subsidiaries on May 19, 2015: Life Partners Inc. (Case No.
15-41995) and LPI Financial Services, Inc. (Case No. 15-41996).
Life Partners is estimated to have $100 million to $500 million in
assets and more than $1 billion in debt. LPI Financial estimated
less than $50,000.
LPATH INC: Dario Paggiarino Resigns as SVP and CDO
--------------------------------------------------
Dario A. Paggiarino, M.D., senior vice president and chief
development officer of Lpath, Inc., notified the Company that he
intends to resign from his position, effective July 22, 2016, to
pursue other opportunities, according to a regulatory filing with
the Securities and Exchange Commission. The Company would like to
thank Mr. Paggiarino for his service.
About LPath
San Diego, Calif.-based Lpath, Inc. is a biotechnology company
focused on the discovery and development of lipidomic-based
therapeutics, an emerging field of medical science whereby
bioactive lipids are targeted to treat human diseases.
LPath reported a net loss of $10.01 million on $1.59 million of
total revenues for the year ended Dec. 31, 2015, compared to a net
loss of $16.55 million on $5.08 million of total revenues for the
year ended Dec. 31, 2014.
Moss Adams LLP, in San Diego, California, issued a "going concern"
qualification on the consolidated financial statements for the year
ended Dec. 31, 2015, citing that the Company's recurring losses and
negative operating cash flows raise substantial doubt about the
Company's ability to continue as a going concern.
M/I HOMES: S&P Raises CCR to 'B+', Outlook Stable
-------------------------------------------------
S&P Global Ratings raised its corporate credit rating on Columbus,
Ohio-based M/I Homes Inc. to 'B+' from 'B'. The outlook is
stable.
At the same time, S&P raised its issue-level rating on the
company's senior unsecured notes to 'BB-' from 'B+'; the recovery
rating on the notes is '2', which indicates that S&P expects a
substantial (70% to 90%; high end of the range) recovery to
debtholders in the event of default. S&P also raised its
issue-level rating on the company's senior subordinated convertible
notes to 'B-' from 'CCC+'; the recovery rating for these notes is
'6', indicating S&P's expectation of minimal (0% to 10%) recovery
if a default occurs. S&P is also raising the rating on its
preferred stock to 'CCC-' from 'CC'.
S&P's rating outlook on M/I Homes Inc. is stable. The outlook
incorporates S&P's view that the single-family housing recovery
will continue at a tempered pace and that M/I will improve EBITDA
as the company's strong backlog and improving sales pace drive home
closing volume growth in the next two years, while maintaining
gross margins of approximately 20% or more and adequate access to
liquidity.
Although S&P currently views it as unlikely, S&P may consider a
downward rating action in the next 12 months if a slowdown in the
U.S. housing market causes growth to underperform substantially
compared to S&P's forecast, or if stagnant pricing and more severe
cost increases than S&P anticipates cause the company's gross
margin to deteriorate, causing S&P to believe debt to EBITDA may
remain above 5x.
S&P also views a positive rating action as unlikely over the next
12 months given the recent upgrade, but may consider it if the
company's profitability profile improves materially and revolving
debt balances are paid down such that the company's debt-to-EBITDA
ratio is comfortably below 4x while still able to fund adequate
land investment to support continued volume growth.
MARICOPA RESOURCES: Jason Searcy Approved as Ch. 11 Trustee
-----------------------------------------------------------
Judge Brenda T. Rhodes on July 18, 2016, entered orders approving
the U.S. Trustee's appointment of Mr. Jason Searcy as the Chapter
11 Trustee for the estates of Maricopa Resources, LLC, Payson
Petroleum, Inc., and Payson Operating LLC.
The Court finds that Mr. Jason Searcy is a "disinterested person"
and is not otherwise disqualified from serving as Trustee of each
Estate. The Court finds that Mr. Searcy is, in all ways, eligible
to serve as Trustee.
Mr. Searcy's compensation is governed by the applicable provisions
of the Bankruptcy Code and is subject to the Court's approval.
Mr. Searcy may be contacted as follows:
Jason R. Searcy
P. O. Box 3929
Longview, TX 75606
Tel: (903) 757-3399
E-mail: jrspc@jrsearcylaw.com
About Maricopa Resources,
Payson Operating and Payson Petroleum
Maricopa Resources, LLC, Payson Operating, LLC, and Payson
Petroleum, LLC, each filed a Chapter 7 petition (Bankr. E.D. Tex.
Case Nos. 16-41043 to 16-41043) on June 10, 2016. The Debtors were
represented by Mark A. Weisbart, Esq., at The Law Office of Mark A.
Weisbart -- weisbartm@earthlink.net -- in Dallas.
On July 11, 2016, the Court held a hearing on the Debtors' motions
to appoint a Chapter 11 Trustee. After appropriate notice and
opportunity for hearing, the Court found that cause exists to
appoint a Chapter 11 Trustee for the Debtors upon conversion of the
cases from Chapter 7 to Chapter 11.
Michelle Chow was named Chapter 7 trustee but was terminated
effective July 12, 2016, following conversion of the cases to
Chapter 11. The Chapter 7 trustee was represented by Mark I. Agee,
Esq.
The cases are assigned to Judge Brenda T. Rhoades.
MOBILE FOX: Hires Lansing Roy as Counsel
----------------------------------------
The Mobile Fox, Inc., seeks authority from the U.S. Bankruptcy
Court for the Middle District of Florida to employ William B.
McDaniel of Lansing Roy, P.A. as counsel to the Debtor.
The Mobile Fox requires Lansing Roy to:
a. advise the Debtor on its rights and duties;
b. prepare pleadings and other court papers related to this
case; including a disclosure statement and a plan of
reorganization; and
c. take all other necessary action incident to the proper
administration of this case.
Lansing Roy will be paid at these hourly rates:
Lansing J. Roy, of Counsel $350
Kevin B. Paysinger $300
William B. McDaniel $250
Paralegals $75
Lansing Roy will be paid a retainer fee of $15,407.00 for
pre-petition and post-petition services and expenses in connection
with the bankruptcy case.
Lansing Roy will also be reimbursed for reasonable out-of-pocket
expenses incurred.
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.
Lansing Roy can be reached at:
William B. McDaniel, Esq.
Kevin B. Paysinger, Esq.
LANSING ROY, P.A.
1710 Shadowood Lane, Suite 210
Jacksonville, FL 32207
Tel: (904) 391-0030
About The Mobile Fox, Inc.
The Mobile Fox, Inc. is a Florida corporation which offers
electronics and office supply products through internet based
storefronts such as Amazon and eBay. The Mobile Fox, Inc. filed a
chapter 11 petition (Bankr. M.D. Fla. Case No. 16-02651) on July
13, 2016.
MORGANS HOTEL: Amends Schedule 13E-3 Transaction Statement
----------------------------------------------------------
Morgans Hotel Group Co. filed with the Securities and Exchange
Commission amendment no. 2 to the Company's Schedule 13E-3 to
reflect the revisions in response to the SEC comment letter dated
July 11, 2016. It is also being filed with the SEC pursuant to
Section 13(e) of the Securities Exchange Act of 1934, as amended,
jointly by (i) Morgans Hotel, (ii) Trousdale Acquisition Sub,
Inc.("Merger Sub"), (iii) SBEEG Holdings, LLC and (iv) Yucaipa
Hospitality Investments, LLC.
The Transaction Statement relates to the Agreement and Plan of
Merger, dated as of May 9, 2016, by and among the Company, SBE and
Merger Sub. Pursuant to the Merger Agreement, if the conditions to
the closing of the merger are either satisfied or waived, Merger
Sub will be merged with and into the Company, the separate
corporate existence of Merger Sub will cease and the Company will
continue its corporate existence under Delaware law as the
surviving corporation in the merger, as a direct or indirect wholly
owned subsidiary of a new holding company to be established by SBE,
in which Yucaipa, the members of SBE and certain other parties will
be members ("Purchaser"). Upon completion of the merger, each
share of the Company's common stock, par value $0.01 per share,
other than shares owned by the Company and SBE and holders who have
properly demanded and not withdrawn a demand for appraisal rights,
will be converted into the right to receive $2.25 per share in
cash, without interest and less any required withholding taxes.
Following the completion of the merger, the Common Stock will no
longer be publicly traded, and holders of the Common Stock that has
been converted will cease to have any ownership interest in the
Company. The Series A preferred securities of the company, par
value $9.01 per share, will be exchanged for a combination of
common and preferred equity interests in Purchaser and certain
restaurants leasehold interests, as more fully described in the
Proxy Statement. The holder of all of the Series A preferred
securities has entered into a voting agreement with SBE, subject to
the terms and conditions of which it has agreed to consent to the
merger and the exchange of Series A preferred securities.
Concurrently with the filing of this Transaction Statement, the
Company is filing with the SEC a revised preliminary proxy
statement under Regulation 14A of the Exchange Act, pursuant to
which the Company's board of directors is soliciting proxies from
stockholders of the Company in connection with the merger.
A full-text copy of the amendment is available for free at:
https://is.gd/nlWWX5
About Morgans Hotel Group
Based in New York, Morgans Hotel Group Co. (Nasdaq: MHGC) --
http://www.morganshotelgroup.com/-- is widely credited as the
creator of the first "boutique" hotel and a continuing leader of
the hotel industry's boutique sector. Morgans Hotel Group
operates and owns, or has an ownership interest in, Morgans,
Royalton and Hudson in New York, Delano and Shore Club in South
Beach, Mondrian in Los Angeles and South Beach, Clift in San
Francisco, Ames in Boston, and Sanderson and St Martins Lane in
London. Morgans Hotel Group and an equity partner also own the
Hard Rock Hotel & Casino in Las Vegas and related assets. Morgans
Hotel Group also manages hotels in Isla Verde, Puerto Rico and
Playa del Carmen, Mexico. Morgans Hotel Group has other property
transactions in various stages of completion, including projects
in SoHo, New York and Palm Springs, California.
Morgans Hotel reported net income attributable to common
stockholders of $5.45 million on $220 million of total revenues for
the year ended Dec. 31, 2015, compared to a net loss attributable
to common stockholders of $66.6 million on $234 million of total
revenues for the year ended Dec. 31, 2014.
As of March 31, 2016, Morgans Hotel had $518 million in total
assets, $737 million in total liabilities and a total deficit of
$219 million.
MOTORS LIQUIDATION: Pre-Sale Plaintiffs Can Pursue Claims vs New GM
-------------------------------------------------------------------
As previously disclosed in the annual report on Form 10-K for the
fiscal year ended March 31, 2016, of Motors Liquidation Company GUC
Trust, certain plaintiffs in actions relating to the recall of
vehicles by the General Motors Company for ignition switch and
other defects appealed certain threshold decisions made by the
United States Bankruptcy Court for the Southern District of New
York in the United States Court of Appeals for the Second Circuit
in In re Motors Liquidation Co., Nos. 15-2844, 15-2847, 15-2848.
In July 2009, New GM purchased assets from Motors Liquidation
Company (formerly known as General Motors Corp.) pursuant to a
Bankruptcy Court order relying on Section 363 of the Bankruptcy
Code that barred certain product liability and property damage
claims against New GM, as the successor corporation, where such
claims arose before July 9, 2009, the closing date of the Sale.
Following New GM's recall of vehicles for ignition switch and other
defects throughout 2014, hundreds of lawsuits were filed.
Plaintiffs in those suits included those who had suffered
pre-closing injuries allegedly arising from the ignition switch
defect and plaintiffs who sought damages for alleged economic
losses arising from the ignition switch defect in Old GM vehicles.
On April 15, 2015, the Bankruptcy Court issued an opinion relating
to the impact of the Sale Order on plaintiffs' lawsuits. The
Bankruptcy Court allowed the Ignition Switch Plaintiffs to pursue
claims against New GM related to its own, post-Sale conduct, but
the Bankruptcy Court enforced the Sale Order to enjoin all other
claims against New GM, and applied the doctrine of "equitable
mootness" to bar relief for would-be claims against the GUC Trust.
On July 13, 2016, the Second Circuit reached a decision in the
Appeal. In its Decision, the Second Circuit held, in pertinent
part, that the Pre-Closing Accident Plaintiffs and Ignition Switch
Plaintiffs were entitled to, but did not receive, direct-mail
notice of the Sale because Old GM "knew or reasonably should have
known about the ignition switch defect prior to bankruptcy." The
Second Circuit also noted that it could not say with fair assurance
that the outcome of the Sale would have been the same had Old GM
given plaintiffs adequate notice of the ignition switch defect and
the Sale, and these plaintiffs voiced their objections to those
provisions of the Sale Order barring their claims against New GM.
Accordingly, the Second Circuit ruled that enforcing the Sale Order
against the Pre-Closing Accident Plaintiffs and the Ignition Switch
Plaintiffs would violate their procedural due process rights in
these circumstances, and therefore, they cannot be bound by the
terms of the Sale Order. As a result, the court held that those
plaintiffs are not enjoined from pursuing claims against New GM.
The Second Circuit further held that the Bankruptcy Court lacked
subject-matter jurisdiction to issue its decision as to equitable
mootness for claims against the GUC Trust because no plaintiff has
asserted a claim against the GUC Trust. Therefore, the court held,
any opinion as to equitable mootness was purely advisory. The
Second Circuit did not, however, express any opinion as to the
merits of whether such claims would be equitably moot if brought
against the GUC Trust.
In addition, the Second Circuit held that the Sale Order cannot
enjoin independent claims relating to New GM's post-Sale conduct.
It also held that claims by purchasers who bought used GM vehicles
post-Sale are not bound by the Sale Order and therefore are not
enjoined from pursuing claims against New GM for their losses,
because those claimants lacked a pre-Sale connection to Old GM at
the time Old GM filed its bankruptcy petition.
The Second Circuit remanded to the Bankruptcy Court for it to
conduct further proceedings as to certain plaintiffs whose damages
may not have resulted from defective ignitions switches.
A copy of the Decision is available for free at:
https://is.gd/OeO8si
About Motors Liquidation
General Motors Corporation and three of its affiliates filed for
Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 09-50026) on
June 1, 2009. The Honorable Robert E. Gerber presides over the
Chapter 11 cases. Harvey R. Miller, Esq., Stephen Karotkin,
Esq., and Joseph H. Smolinsky, Esq., at Weil, Gotshal & Manges
LLP, assist the Debtors in their restructuring efforts. Al Koch
at AP Services, LLC, an affiliate of AlixPartners, LLP, serves as
the Chief Executive Officer for Motors Liquidation Company. GM
is also represented by Jenner & Block LLP and Honigman Miller
Schwartz and Cohn LLP as counsel. Cravath, Swaine, & Moore LLP
is providing legal advice to the GM Board of Directors. GM's
financial advisors are Morgan Stanley, Evercore Partners and the
Blackstone Group LLP. Garden City Group is the claims and notice
agent of the Debtors.
The U.S. Trustee appointed an Official Committee of Unsecured
Creditors and a separate Official Committee of Unsecured
Creditors Holding Asbestos-Related Claims. Lawyers at Kramer
Levin Naftalis & Frankel LLP served as bankruptcy counsel to the
Creditors Committee. Attorneys at Butzel Long served as counsel
on supplier contract matters. FTI Consulting Inc. served as
financial advisors to the Creditors Committee. Elihu Inselbuch,
Esq., at Caplin & Drysdale, Chartered, represented the Asbestos
Committee. Legal Analysis Systems, Inc., served as asbestos
valuation analyst.
The Bankruptcy Court entered an order confirming the Debtors'
Second Amended Joint Chapter 11 Plan on March 29, 2011. The Plan
was declared effect on March 31, 2011.
On Dec. 15, 2011, Motors Liquidation Company was dissolved. On
the Dissolution Date, pursuant to the Plan and the Motors
Liquidation Company GUC Trust Agreement, dated March 30, 2011,
between the parties thereto, the trust administrator and trustee
-- GUC Trust Administrator -- of the Motors Liquidation Company
GUC Trust, assumed responsibility for the affairs of and certain
claims against MLC and its debtor subsidiaries that were not
concluded prior to the Dissolution Date.
Motors Liquidation had $669 million in total assets, $56.4 million
in total liabilities and $613 million in net assets in liquidation
as of Dec. 31, 2015.
MUSCLEPHARM CORP: May Issue 2 Million Shares Under Incentive Plan
-----------------------------------------------------------------
MusclePharm Corporation filed a Form S-8 registration statement
with the Securities and Exchange Commission to register 2,000,000
shares of common stock issuable under the Company's 2015 Incentive
Compensation Plan. The proposed maximum aggregate offering price
is $5.19 million. A full-text copy of the prospectus is available
for free at https://is.gd/kHcqzt
About MusclePharm
Headquartered in Denver, Colorado, MusclePharm Corporation
(OTC BB: MSLP) -- http://www.muslepharm.com/-- is a healthy life-
style company that develops and manufactures a full line of
National Science Foundation approved nutritional supplements that
are 100 percent free of banned substances. MusclePharm is sold in
over 120 countries and available in over 5,000 U.S. retail
outlets, including GNC and Vitamin Shoppe. MusclePharm products
are also sold in over 100 online stores, including
bodybuilding.com, Amazon.com and Vitacost.com.
MusclePharm Corporation reported a net loss of $13.8 million in
2014, a net loss of $17.7 million in 2013 and a net loss of $19
million in 2012.
As of March 31, 2016, MusclePharm had $61.2 million in total
assets, $73.1 million in total liabilities and a total
stockholders' deficit of $11.9 million.
NET ELEMENT: Reports $1.88-Mil. Net Loss in Quarter Ended March 31
------------------------------------------------------------------
Net Element, Inc., filed with the Securities and Exchange
Commission its quarterly report on Form 10-Q disclosing a net loss
of $1.88 million on $11.26 million of total revenues for the three
months ended March 31, 2016, compared to a net loss of $2.25
million on $5.54 million of total revenues for the same period in
2015.
As of March 31, 2016, Net Element had $21.61 million in total
assets, $14.06 million in total liabilities and $7.56 million in
total stockholders' equity.
The company's condensed consolidated financial statements have been
prepared on a going concern basis, which contemplates the
realization of assets and the settlement of liabilities and
commitments in the normal course of business. The company sustained
a net loss of approximately $1.9 million for the three month period
ended March 31, 2016, an accumulated deficit of $145.8 million and
negative working capital of $4.1 million at March 31, 2016. These
conditions raise substantial doubt about the company's ability to
continue as a going concern.
Failure to successfully continue developing the Company’s payment
processing operations and maintain contracts with merchants, mobile
phone carriers and content providers to use TOT Group’s services
could harm its revenues and materially adversely affect on
company's financial condition and results of operations. The
company face all of the risks inherent in a new business, including
the need for significant additional capital, management’s
potential underestimation of initial and ongoing costs, and
potential delays and other problems in connection with developing
its technologies and operations.
The Company is continuing with its plan to further grow and expand
their payment processing operations in emerging markets,
particularly in Russia and surrounding countries. Management
believes that its current operating strategy will provide the
opportunity for them to continue as a going concern as long as they
are able to obtain additional financing; however, there is no
assurance this will occur.
A copy of the Form 10-Q is available for free at:
https://is.gd/P5zEUb
About Net Element
Miami, Fla.-based Net Element International, Inc., formerly Net
Element, Inc., currently operates several online media Web sites in
the film, auto racing and emerging music talent markets.
Net Element reported a net loss of $13.3 million on $40.2 million
of total revenues for the year ended Dec. 31, 2015, compared to a
net loss of $10.21 million on $21.4 million of total revenues for
the year ended Dec. 31, 2014.
As of March 31, 2016, Net Element had $21.61 million in total
assets, $14.05 million in total liabilities and $7.55 million in
total stockholders' equity.
Daszkal Bolton LLP, in Fort Lauderdale, Florida, issued a "going
concern" qualification on the consolidated financial statements for
the year ended Dec. 31, 2015, citing that the Company has sustained
recurring losses from operations and has working capital and
accumulated deficits that raise substantial doubt about its ability
to continue as a going concern.
NEWARK DOWNTOWN: Unsecureds to Get 100% Payment of Claims
---------------------------------------------------------
Newark Downtown Center, Inc., filed with the U.S. Bankruptcy Court
for the Southern District of Ohio its First Amended Disclosure
Statement, proposing that general unsecured creditors -- classified
in Class 3 -- will receive a distribution of 100% of their allowed
claims.
All general unsecured creditors with nonpriority unsecured claims
will be paid from the net proceeds from the sale of the Debtor's
real estate and other assets and after all Unclassified Claims and
secured claims have been satisfied in full.
In the event that a sale does not occur within five years of the
confirmation of the Chapter 11 Plan, the general unsecured
creditors will be paid 100% of their allowed claims, after payment
in full of all Unclassified Claims, for the administrative
convenience of the Plan and since the total of all General
Unsecured Claims in Class 3 is under $1,200.
Payments and distributions under the Plan will be funded by
operations of the Debtor, including rental income and revenue from
the bar activity and from the proceeds from the sale of the
Debtor's Arcade real estate and other assets.
The Plan provides for a sale of the Debtor's real estate and other
assets. The Debtor's real estate consists of the Arcade real
estate, a block-long, indoor shopping mall consisting of various
shops which the Debtor leases to small business merchants and a few
upstairs apartments leased to tenants. The Debtor also operates a
bar within the Arcade facility. The Debtor will consider a sale of
the bar and its assets separately from the sale of the Arcade real
estate and will also consider the sale of the bar and the Arcade
real estate together, whichever is in the best interests of the
Plan and whichever will result in the maximum amount of net
proceeds. In the event of a sale of some, but not all, of the real
estate and other assets of the Debtor, the net proceeds of sale
will be applied first to administrative expenses which are allowed
under the Code; then after full satisfaction of administrative
expenses to priority tax claims; and then after full satisfaction
of priority tax claims to secured claims.
A full-text copy of the First Amended Disclosure Statement dated
July 6, 2016, is available at:
http://bankrupt.com/misc/ohsb16-50893-73.pdf
The Plan was filed by the Debtor’s counsel:
Morrow, Gordon & Byrd, Ltd.
33 W. Main Street
P.O. Box 4190
Newark, OH 43058-4190
Tel: (740) 345-9611
Fax: (740) 349-9816
E-mail: jcooper@mgbohiolaw.com
Newark Downtown Center, Inc., filed for Chapter 11 bankruptcy
protection (Bankr. S.D. Ohio Case No. 16-50893) on Feb. 17, 2016.
NEWPAGE CORP: PI Claimant Seeks Leave to File Late Claim
--------------------------------------------------------
Jason Szelagowski, a personal injury claimant asserting claims
against Newpage Corp.'s debtor-affiliate NewPage Wisconsin System
Inc., is asking the U.S. Bankruptcy Court for the District of
Delaware, to:
(1) grant him leave to file a proof of claim in the cases after
the expiration of the Bar Date;
(2) grant him relief from the Confirmation Order Discharge and
Injunction to prosecute a personal injury action against NewPage
Wisconsin and, to the extent necessary, certain other of the
reorganized debtors, in Wisconsin state court; and
(3) abstain from hearing this matter pursuant to 28 U.S.C. Sec.
1334(c).
Prior to Aug. 12, 2011 (the "Injury Date"), Mr. Szelagowski was
employed by Hydroblasters, Inc., which had agreed to clean out the
base of the dust collection silo at NewPage Wisconsin's Biron Mill
plant located in Biron, Wisconsin. The silo had been damaged as a
result of a fire on June 28, 2011.
On Aug. 11, 2011, NewPage Wisconsin employees entered the silo to
replace the dust collection bags and noticed an approximately one-
foot glowing ember within the silo. The NewPage Wisconsin
employees were ordered to exit the silo, which was then closed.
NewPage Wisconsin did not warn Hydroblasters or Mr. Szelagowski
about the potential danger.
The next day, on Aug. 12, 2011, a NewPage Wisconsin employee
opened the silo for the then 30 year old Mr. Szelagowski to begin
his work, which entailed cleaning the sludge from the base of the
silo with a water hose. After the water broke through the hard
sludge level in the silo, a cloud of dry coal dust was released
along with a glowing ember and several massive flash fires
occurred.
Mr. Szelagowski was seriously burned and was flown by helicopter
over 100 miles to the University of Wisconsin-Madison's burn
center where he remained for more than two months until Nov. 29,
2011. He spent the first several weeks at the hospital in a
medically-induced coma so that his doctors could treat his second
and third degree burns. His release from the hospital was
followed by several months of intense and painful therapy and
rehabilitation that consisted of multi-hour sessions five times a
week. Over the course of the five years since the Injury Date,
Mr. Szelagowski has endured multiple surgeries with extended
hospital stays.
The Injury and resulting damages suffered by Mr. Szelagowski may be
covered by one or more of NewPage Wisconsin's insurance policies,
including, but not limited to, policies issued by Zurich American
Insurance Company and Commerce and Industry Insurance Company.
Mr. Szelagowski was not served with the notice of the order
setting a Feb. 3, 2012 claims bar date.
On Dec. 14, 2012, the Court entered its Findings of Fact,
Conclusions of Law, and Order Confirming the Joint Plan of
Reorganization for the Debtors. Mr. Szelagowski was not served
with notice of the Plan confirmation hearing.
On June 22, 2016, Mr. Szelagowski filed a proof of claim (Claim
No. 2901) against NewPage Wisconsin (Case No. 11-12807) in the
amount of not less than $17 million.
The Debtors' chapter 11 cases remain open and distributions to
unsecured creditors have not yet commenced.
"The Debtors and their estates will not suffer any prejudice
because allowance of Mr. Szelagowski's claims would not jeopardize
or adversely impact the success of the Debtors' reorganization or
force the return of amounts already paid out under the Plan.
Although the Effective Date of the Plan occurred about three and a
half years ago, the parties appear to be still actively engaged in
the claims reconciliation process. Indeed, the Litigation Trust
recently obtained an extension of the claims objection deadline
through and including August 4, 2016. Therefore, given the
present juncture of these cases, it is unclear how many and the
amount of claims that ultimately will be allowed. See Inacom, 2004
WL 2283599, at *4 (court finding that resolution of claimant's
claim would not impact any distribution to creditors because
debtor was still engaged in claims reconciliation process and
therefore final distribution to creditors was not set and no
evidence from either party suggested that amounts already paid out
under plan would have to be returned)," Victoria Guilfoyle, Esq.,
at Blank Rome LLP, asserts.
Attorneys for Jason Szelagowski:
BLANK ROME LLP
Bonnie Glantz Fatell
Victoria Guilfoyle
1201 Market Street, Suite 800
Wilmington, DE 19801
Tel: (302) 425-6400
Fax: (3020 425-6464
E-mail: Fatell@BlankRome.com
Guilfoyle@BlankRome.com
- and -
Marie Stanton
HURLEY, BURISH & STANTON, S.C.
33 East Main Street, Suite 400
Madison, WI 53703
Tel: (608) 257-0945
Fax: (608) 257-5764
E-mail: mstanton@hbslawfirm.com
- and -
Frank Terschan
TERSCHAN, STEINLE, HODAN & GANZER
309 N. Water Street, Suite 215
Milwaukee, WI 53202
Tel: (414) 258-1010
E-mail: frank.terschan@tshglaw.com
Claim Also Filed in New Case
Verso Corp. and its affiliates, including Newage Corp and NewPage
Wisconsin sought Chapter 11 protection on Jan. 26, 2016.
On April 25, 2016, Mr. Szelagowski timely filed a proof of claim
(Claim No. 3096) against NewPage Wisconsin (Case No. 16-10174) in
the amount of not less than $17 million.
About the 2011 Cases
Headquartered in Miamisburg, Ohio, NewPage Corporation was the
leading producer of printing and specialty papers in North
America, based on production capacity, with $3.6 billion in net
sales for the year ended Dec. 31, 2010.
NewPage Group, NewPage Holding, NewPage, and certain of their U.S.
subsidiaries commenced Chapter 11 voluntary cases (Bankr. D. Del.
Case Nos. 11-12804 through 11-12817) on Sept. 7, 2011. NewPage
successfully completed its financial restructuring and has
officially emerged from Chapter 11 bankruptcy protection pursuant
to its Modified Fourth Amended Chapter 11 Plan, confirmed on
Dec. 14, 2012. Pirinate Consulting Group, LLC, was named as
Liquidation Trustee of the NP Creditor Liquidation Trust.
NewPage originally engaged Dewey & LeBoeuf LLP as general
bankruptcy counsel. In May 2012, Dewey dissolved and commenced
its own Chapter 11 case. Dewey's restructuring group led by
Martin J. Bienenstock, Esq., Judy G.Z. Liu, Esq., and Philip M.
Abelson, Esq., moved to Proskauer Rose LLP. In June, NewPage
sought to hire Proskauer as replacement counsel.
NewPage was also represented by Laura Davis Jones, Esq., at
Pachulski Stang Ziehl & Jones LLP, in Wilmington, Delaware, as
co-counsel. Lazard Freres & Co. LLC was the investment banker,
and FTI Consulting Inc. is the financial advisor. Kurtzman Carson
Consultants LLC was the claims and notice agent.
About the 2016 Cases
As of January 7, 2015, debtor NewPage Corporation became an
indirect, wholly owned subsidiary of Verso Corporation. NewPage
Corporation, in turn, directly or indirectly owns
NewPage Wisconsin.
Verso Corporation and 26 of its affiliates, including NewPage
Corporation, filed Chapter 11 bankruptcy petitions (Bankr. D. Del.
Case Nos. 16-10163 to 16-10189, respectively) on Jan. 26, 2016.
On June 23, 2016, the Court entered an order confirming the
Debtors' First Modified Third Amended Joint Plan of Reorganization
Under Chapter 11 of the Bankruptcy Code.
The Verso Debtors have engaged O'Melveny & Myers LLP as general
counsel, Paul, Weiss, Rifkind, Wharton & Garrison LLP as corporate
counsel, Richards, Layton & Finger, P.A. as Delaware counsel, PJT
Partners L.P. as investment banker, Alvarez & Marsal North America,
LLC as financial advisor and Prime Clerk LLC as claims and noticing
agent.
NICKLAS LLC: Unsecured Creditors to be Paid in 60 Months
--------------------------------------------------------
Nicklas LLC has filed a motion seeking court approval of the
outline of its proposed plan to exit Chapter 11 protection.
In its motion, Nicklas asked the U.S. Bankruptcy Court for the
Middle District of Pennsylvania to approve the disclosure statement
which, if granted, would allow the company to begin soliciting
votes for its reorganization plan.
Under the proposed plan, general unsecured creditors in Class 6
will be paid in full over 60 months after the effective date of the
plan. The first payment will begin on or before six months after
the effective date.
To fund the plan, Nicklas will continue to lease to existing
tenants its real property located at 100 Sunset Boulevard W.,
Chambersburg, Pennsylvania. The company will also enter into a new
lease with FYM, LLC for its 201 and 221 Sunset properties.
A copy of the disclosure statement filed on July 14 is available
for free at https://is.gd/4ARuJC
Nicklas can be reached through its counsel:
Robert E. Chernicoff, Esq.
Cunningham, Chernicoff & Warshawsky P.C.
2320 North Second Street
P.O. Box 60457
Harrisburg, PA 17106-0457
Phone: (717) 238-6570
Email: rec@cclawpc.com
About Nicklas LLC
Nicklas LLC sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. M.D. Pa. Case No. 15-02742) on June 26, 2015.
NORDIC INTERIOR: Files for Chapter 11 Bankruptcy
------------------------------------------------
Nordic Interior, Inc., a New York-based manufacturer and installer
of commercial architectural woodwork and cabinetry, sought
bankruptcy protection under Chapter 11 of the Bankruptcy Code
listing assets of $3.5 million and liabilities of $5 million.
Nordic said it commenced the Chapter 11 case to afford it a
centralized forum to monetize its assets and the opportunity to
propose, confirm and consummate a plan of reorganization that will
be in the best interests of its estate and all of its creditors.
"The Debtor's business has suffered as a result of the slow
recovery from the recession, which has resulted in a reduced
project workload and significant delays in the collection of
receivables, which, in turn, has caused the Debtor to fall into
substantial arrears with its principal creditors," said Company
President Helge Halvorsen.
The Debtor's only secured creditor is the Internal Revenue Service,
which, as of the Petition Date, has a secured claim in the
approximate amount of $1.7 million. The Debtor intends to ask the
Court for authority to use the IRS's cash collateral (with an
estimated value of $3.5 million).
A.J. Bohea Co., the Debtor's landlord, is owed $150,000 on account
of rent arrears. Two months ago, A.J. Bohea commenced an action in
the Civil Court of the City of New York, County of Queens, Part 52
against the Debtor seeking a judgment of eviction awarding the
Landlord possession of the Premises and a money judgment.
Thereafter, the Debtor and the Landlord entered into a stipulation,
pursuant to which the Debtor agreed to pay the Landlord $12,000 per
week for 44 weeks on account of rent and past due rent and
consented to the entry of a final judgment of possession and a
money judgment in the amount of $211,108. The Debtor also
consented to the issuance of a warrant of eviction, which is stayed
conditioned on the Debtor fulfilling its payment obligations under
the stipulation.
As disclosed in court documents, the Debtor owes the New York City
District Council of Carpenters approximately $750,000 on account of
past due employee benefit contributions, and is a party to an
agreement with the Carpenters' Union, pursuant to which it has
agreed to make monthly payments of $25,000 on account of that
indebtedness.
The Debtor is also in arrears to New York State on account of
current unpaid (a) unemployment tax in the amount of approximately
$67,000, (b) sales tax in the amount of approximately $108,000, and
(c) withholding tax in the amount of approximately $45,000.
About Nordic
Nordic Interior, Inc., was founded in 1973 as a drywall and small
woodworking company and, today, is used by many of the most
creative and distinguished designers and contractors in the
industry.
For the six-month period ended June 30, 2016, the Debtor had net
sales on a cash basis of approximately $7.5 million and generated a
net profit from operations of approximately $100,000.
Currently, the Debtor has approximately 50 employees, 35 of whom
are carpenters and project managers who are subject to a collective
bargaining agreement with the Carpenters' Union.
The case is pending before Judge Elizabeth S. Stong (Bankr.
E.D.N.Y. Case No. 16-43163).
Rosen & Associates, P.C., serves as counsel to the Debtor.
NORTH TEXAS ENERGY: Reports $42-K Net Loss in Q2 Ended March 31
---------------------------------------------------------------
North Texas Energy, Inc., filed with the U.S. Securities and
Exchange Commission its quarterly report on Form 10-Q, reporting a
net loss of $42,481 on $867 of revenues for the three months ended
March 31, 2016, compared to a net loss of $65,657 on $7,418 of
revenues for the same period in the prior year.
The Company's balance sheet at March 31, 2016, showed $1.56 million
in total assets, $267,558 in total liabilities, and stockholders'
equity of $1.29 million.
The Company has incurred losses from operations, has not generated
significant revenue and has not secured continuous funding for the
operation of its oil and gas producing activities. These factors
raise substantial doubt about the Company's ability to continue as
a going concern, according to the regulatory filing.
A copy of the Form 10-Q is available at:
https://is.gd/gC3E2n
North Texas Energy, Inc. (NTE) is a non-traditional enhanced oil
recovery (EOR) crude oil and natural gas production company. This
public company is headquartered in Addison, Texas.
NORTHWOOD PROPERTIES: Selling 181-Acre Property for $650,000
------------------------------------------------------------
Northwood Properties, Inc., is asking the U.S. Bankruptcy Court for
the Northern District of Florida for approval to sell its 181-acre
property in Milton, Florida.
In an amended motion filed July 15, 2016, the Debtor says that it
has entered into a contract for the sale of the Airport Park parcel
and the Persimmon Hollow parcel to Cliff Mowe for $650,000.
Other than Hancock Bank and the Santa Rosa County Tax Collector,
there are no other parties holding liens on the property which is
proposed to be sold pursuant to the contract.
It is proposed that the property will be sold and that the proceeds
will be used to pay creditors, after payment of customary closing
costs (including realtors' commissions) and any capital gains tax,
in the order of priority under the Chapter 11 Plan. Additionally,
before distribution of the proceeds, the Debtor will set aside
funds to pay the applicable U.S. Trustee quarterly fees estimated
to be $4,875. In accordance with the terms of the confirmed Plan,
the proceeds will be distributed to creditors in the following
order of priority, to the extent that funds are available. It is
proposed that proceeds will be distributed as follows:
a. Hancock Bank;
b. Santa Rosa County Tax Collector for the taxes owed on the
parcels being sold;
c. Post-confirmation attorney's fees;
d. Claims of the Santa Rosa County Tax Collector on parcels
other than the parcels being sold;
e. Tax Certificate Holders who hold tax certificates on parcels
other than the parcel being sold;
f. Unsecured creditors; and
g. Distribution to shareholders of Northwood.
Because the purchase price for the sale of the property exceeds the
debt owed to Hancock Bank, the sale will enable the Debtor to pay
Hancock Bank its claim, in full. The sale will also allow net
proceeds to be generated which would be available for payment of
other creditors pursuant to the Plan.
The Airport Park parcel and Persimmon Hollow parcel are subject to
a mortgage held by creditor, Hancock Bank, who filed a proof of
claim in the case indicating a debt secured by the property in the
amount of $467,930 as of the Petition Date.
About Northwood Properties
Northwood Properties, Inc., filed a Chapter 11 petition (Bankr.
N.D. Fla. Case No. 14-30367) on April 4, 2014. The petition was
signed by William A. Pullum, president. Hon. William S. Shulman is
the case judge. The Debtor tapped Steven Ford, Esq., at Wilson,
Harrell, Farrington & Ford, in Pensacola, Florida. The Debtor
disclosed $1.54 million in assets and $510,600 in liabilities.
* * *
On Feb. 18, 2015, the Court entered its order confirming the
Amended Chapter 11 Plan proposed by the Debtor. Pursuant to the
Plan, the Debtor proposed the sale of its real estate, the proceeds
of which are to be used to pay the claims of creditors in the case.
The major asset owned by the Debtor consists of two contiguous
parcels of real property located in Milton, Florida, referred to in
the Debtor's Plan as the Airport Park parcel and the Persimmon
Hollow parcel forming one large tract consisting of 181 acres.
NUVIRA HOSPITALITY: Must Continue Adequate Protection to Four Star
------------------------------------------------------------------
Judge Letitia Z. Paul of the United States Bankruptcy Court for the
Southern District of Texas, Galveston Division, has issued findings
of fact and conclusions of law on the motion filed by Four Star
Business, Inc. for relief from stay against property in the case
captioned IN RE NUVIRA HOSPITALITY INC., Debtor, Case No.
15-80432-G3-11 (Bankr. S.D. Tex.).
Four Star's motion pertains to a 31-unit motel with RV facilities,
known as Anchor Motel, located at 1302 Bluewater Highway, Freeport,
Texas in the Village of Surfside Beach, Texas 77088.
Four Star sought relief from stay alleging that the stay should be
lifted for cause on the bases that Debtor cannot provide adequate
protection of its interest in the property and that section
362(d)(3) of the Bankruptcy Code is applicable. Four Star claims
that the nature of the Debtor's business is that of a single asset
real estate case, and pursuant to section 362(d)(3), the Debtor has
not timely filed a plan that has a reasonable possibility of being
confirmed within a reasonable time.
Judge Paul concluded that in light of the totality of the
circumstances in the case, i.e., the temporary closing of the
business and its seasonal nature, the fact that the property is
insured and the property taxes are current, and that the property
has been repaired, improved, and upgraded by the debtor, the stay
should be conditioned on terms which will encourage continued
adequate protection of Four Star's interest in the property.
A full-text copy of Judge Paul's July 19, 2016 memorandum opinion
is available at http://bankrupt.com/misc/txsb15-80432-33.pdf
OAKRIDGE GLOBAL: Incurs $7.54-Mil. Net Loss in Sept. 30 Qtr.
------------------------------------------------------------
Oakridge Global Energy Solutions, Inc., filed with the Securities
and Exchange Commission its quarterly report on Form 10-Q/A-2
disclosing a net loss of $7.54 million on $704 of revenues for the
three months period ended Sept. 30, 2015, compared to a net loss of
$4.13 million on $nil of revenues for the same period in 2014.
At Sept. 30, 2015, the company had total assets of $49.34 million,
total liabilities of $2.70 million, and total stockholders' equity
of $46.63 million.
The Company has dedicated substantial resources required to
research and development and marketing of the Company's products
which include general and administrative expenses associated with
its organization and product development. They expect operating
losses to continue, due to the anticipated costs to develop
products. These conditions raise substantial doubt about the
Company's ability to continue as a going concern. They require
financing for their plan of operations. Current cash on hand is
not sufficient to maintain their current operations and there is no
assurance that future sales and marketing efforts will be
successful enough to achieve the level of revenue sufficient to
provide cash to sustain operations. To the extent such revenues and
corresponding cash flows do not materialize, the Company will
attempt to fund working capital requirements through third party
financing, including a private placement of their securities. In
the absence of revenues, they currently believe they require a
minimum of $10 million to maintain their current operations through
the next 12 months and up to $5 million to continue the Company's
research and development. The Company cannot provide any assurances
that required capital will be obtained or that the terms of such
required capital may be acceptable to them. If they are unable to
obtain adequate financing, they may reduce their operating
activities until sufficient funding is secured or revenues are
generated to support operating activities.
The Company has operating losses since inception and has not yet
been able to generate profits from operations. Operating capital
has been raised through convertible debt from a shareholder and
sale of our common stock and subscriptions from a related party.
These factors raise substantial doubt about the Company's ability
to continue as a going concern.
The Company is presently building working samples for a wide range
of energy storage products that are expected to result in
commercial orders for a number of these products and for which
additional funding will be required to manufacture and deliver any
commercial orders received. The Company has commenced implementing,
and will continue to implement, various measures to address its
financial condition, including but not limited to continuing to
seek debt and equity financing. However, there can be no assurances
that the Company will be able to raise additional capital on
favorable terms, or at all.
A full-text copy of the Form 10-Q/A-2 report is available at:
https://is.gd/XNxxGG
Melbourne, Fla.-based Oakridge Global Energy Solutions, Inc., is an
energy storage solutions company that designs, develops, and
manufactures small to large format lithium ion cells, batteries,
and battery systems.
ONCOBIOLOGICS INC: Incurs $3.54-Mil. Loss in Quarter Ended March 31
-------------------------------------------------------------------
Oncobiologics, Inc., filed with the Securities and Exchange
Commission its quarterly report on Form 10-Q disclosing a net loss
of $3.54 million on $994,894 of revenues for the three months ended
March 31, 2016, compared to a net loss of $13.98 million on
$494,894 of revenues for the same period in 2015.
As of March 31, 2016, the company had $24.83 million in total
assets, $45.30 million in total liabilities, $17.4 million in
redeemable preferred stock and $37.86 million in total
stockholders' deficit.
The Company has incurred substantial losses and negative cash flows
from operations since its inception and has an accumulated deficit
of $114.5 million and $94.1 million as of March 31, 2016 and
September 30, 2015, respectively. In addition, the Company has $8.9
million and $14.2 million of indebtedness that is due on demand, as
of March 31, 2016 and September 30, 2015, respectively. These
factors raise substantial doubt about the Company’s ability to
continue as a going concern.
The Company has substantial indebtedness that includes $9.7 million
in notes payable to stockholders that are payable on demand. There
can be no assurance that note holders will not exercise their right
to demand repayment.
A copy of the Form 10-Q is available for free at:
https://is.gd/YsZpII
Oncobiologics, Inc., is a clinical-stage biopharmaceutical company
focused on identifying, developing, manufacturing and
commercializing complex biosimilar therapeutics. The Cranbury, New
Jersey-based Company's current focus is on technically challenging
and commercially attractive monoclonal antibodies, or mAbs, in the
disease areas of immunology and oncology.
PACIFIC EXPLORATION: Meeting of Unsec. Creditors Set for Aug. 17
----------------------------------------------------------------
A meeting of a single class of affected unsecured creditors of
Pacific Exploration & Production Corporation and its
debtor-affiliates will be held at 10:00 a.m. (Toronto Time) on Aug.
17, 2016, at the Offices of Norton Rose Fulbright Canada LLP, Royal
Bank Plaza, South Tower, 200 Bay Street, Suite 3800, Toronto,
Ontario, for the purpose of considering and voting upon the plan
filed by the Debtors.
The Debtors have set a date for a court hearing at 10:00 a.m.
(Toronto Time) on Aug. 23, 2016, at which time the Debtors will ask
the Ontario Superior Court of Justice to approved the plan, if the
plan was approved by the requisite majorities of affected creditors
at the meeting.
The Monitor's contact details for additional information or
materials related to the meeting is:
PricewaterhouseCoopers INC.
Monitor
Pacific Exploration & Production Corporation et al.
PwC Tower
18 York Street, Suite 2600
Toronto, Ontario M5J 0B2
Attention: Tammy Muradova
E-mail: cmt_processing@ca.pwc.com
Canada/US Toll Free: +1 844-855-8568
Colombia Toll Free: 01 800-518-2167
US Direct: +1 503-5204469
Fax: +1 416-814-3219
About Pacific Exploration & Production
Pacific Exploration & Production Corp. is a Canadian public company
and a leading explorer and producer of natural gas and crude oil,
with operations focused in Latin America. The Company has a
diversified portfolio of assets with interests in more than 70
exploration and production blocks in various countries including
Colombia, Peru, Guatemala, Brazil, Guyana and Belize. The
Company's strategy is focused on sustainable growth in production &
reserves and cash generation.
In April 19, 2016 and April 20, 2016, the Company announced its
entry into an agreement with: (i) The Catalyst Capital Group Inc.,
(ii) certain members of an ad hoc committee of holders of the
Company's senior unsecured notes, and (iii) certain of the
Company's lenders under its credit facilities, to effect a
comprehensive financial restructuring (the "Restructuring
Transaction") that will significantly reduce debt, improve
liquidity, and best position the Company to navigate the current
oil price environment. The restructuring will be implemented by
way of a plan of arrangement pursuant to a court-supervised process
in Canada, together with appropriate proceedings in Colombia under
Law 1116 and in the United States.
On April 27, 2016, Pacific Exploration, et al., applied for and
received an order for protection pursuant to the Companies
Creditors Arrangement Act ("CCAA"), R.S.C.1985, c.C-36 from the
Ontario Superior Court of Justice Commercial List and
PricewaterhouseCoopers Inc. was appointed as monitor of the
Applicants (the "Monitor").
The Applicants filed recognition proceedings pursuant to Chapter 15
of title 11 of the United States Bankruptcy Code (the "U.S.
Proceedings") and pursuant to Law 1116 of 2006 of the Republic of
Colombia (the "Colombian Proceedings"). Pacific, et al., each
filed a Chapter 15 bankruptcy petition (Bank. S.D.N.Y. Case Nos.
16-11189 to 16-11211) in New York, in the U.S. on April 29, 2016.
The Company is being advised by Lazard Freres & Co. LLC, Norton
Rose Fulbright Canada LLP (Canada), Proskauer Rose LLP (U.S.),
Zolfo Cooper (U.S.), Garrigues (Colombia) and Kingsdale Shareholder
Services (Canada). The Independent Committee is being advised by
Osler, Hoskin & Harcourt LLP and UBS Securities Canada Inc. The
Noteholders forming part of the funding creditors are being advised
by Evercore Group L.L.C. (U.S.), Goodmans LLP (Canada), Paul,
Weiss, Rifkind, Wharton & Garrison LLP (U.S.) and Cardenas y
Cardenas Abogados (Colombia). FTI Consulting (U.S.), Davis Polk &
Wardwell LLP (U.S.), Torys LLP (Canada) and Gomez-Pinzon Zuleta
Abogados (Colombia) are counsel to the agent on the revolving
credit facility of the Company, and Seward & Kissel is counsel to
the agent on the HSBC Bank, USA, N.A. term loan of the Company.
Catalyst is being advised by Brown Rudnick LLP (U.S.), McMillan LLP
(Canada) and GMP Securities L.P.
PAYSON OPERATING: Jason Searcy Approved as Ch. 11 Trustee
---------------------------------------------------------
Judge Brenda T. Rhodes on July 18, 2016, entered orders approving
the U.S. Trustee's appointment of Mr. Jason Searcy as the Chapter
11 Trustee for the estates of Maricopa Resources, LLC, Payson
Petroleum, Inc., and Payson Operating LLC.
The Court finds that Mr. Jason Searcy is a "disinterested person"
and is not otherwise disqualified from serving as Trustee of each
Estate. The Court finds that Mr. Searcy is, in all ways, eligible
to serve as Trustee.
Mr. Searcy's compensation is governed by the applicable provisions
of the Bankruptcy Code and is subject to the Court's approval.
Mr. Searcy may be contacted as follows:
Jason R. Searcy
P. O. Box 3929
Longview, TX 75606
Tel: (903) 757-3399
E-mail: jrspc@jrsearcylaw.com
About Maricopa Resources,
Payson Operating and Payson Petroleum
Maricopa Resources, LLC, Payson Operating, LLC, and Payson
Petroleum, LLC, each filed a Chapter 7 petition (Bankr. E.D. Tex.
Case Nos. 16-41043 to 16-41043) on June 10, 2016. The Debtors were
represented by Mark A. Weisbart, Esq., at The Law Office of Mark A.
Weisbart -- weisbartm@earthlink.net -- in Dallas.
On July 11, 2016, the Court held a hearing on the Debtors' motions
to appoint a Chapter 11 Trustee. After appropriate notice and
opportunity for hearing, the Court found that cause exists to
appoint a Chapter 11 Trustee for the Debtors upon conversion of the
cases from Chapter 7 to Chapter 11.
Michelle Chow was named Chapter 7 trustee but was terminated
effective July 12, 2016, following conversion of the cases to
Chapter 11. The Chapter 7 trustee was represented by Mark I. Agee,
Esq.
The cases are assigned to Judge Brenda T. Rhoades.
PFO GLOBAL: Marcum LLP Raises Going Concern Doubt on Losses
-----------------------------------------------------------
PFO Global, Inc., filed with the Securities and Exchange Commission
its annual report on Form 10-K disclosing a net loss of $15.67
million on $3.37 million of sales for the year ended Dec. 31, 2015,
compared to a net loss of $8.45 million on $2.98 of sales for the
year ended in 2014.
At December 31, 2015, the company had total assets of $1.87
million, total liabilities of $26.42 million, and total
stockholders' deficit of $24.55 million.
As a result recurring net losses, Marcum LLP has included an
explanatory paragraph in its report on company's financial
statements for the years ended December 31, 2015 and 2014,
expressing substantial doubt as to its ability to continue as a
going concern. The inclusion of a going concern explanatory
paragraph in the report of its independent registered public
accounting firm may make it more difficult for the company to
secure additional financing or enter into strategic relationship on
terms acceptable to the company, if at all, and may materially and
adversely affect the terms of any financing that it might obtain.
As of December 31, 2015, the Company had cash of $26,250 and
working capital deficit of approximately $14.7 million. During the
year ended December 31, 2015, the Company used net cash in
operating activities of $6.8 million. The Company has not yet
generated any significant, on-going revenues, and has incurred net
losses since inception. The Company has experienced continuing
losses and has reduced expenses through layoffs, reduced research
and development and is in the process of consolidating facilities.
During the year ended December 31, 2015, the Company raised $6.8
million in debt, net of repayments and issuance costs. The Company
believes that its current cash on hand will not be sufficient to
fund its projected operating requirements. These conditions raise
substantial doubt about the Company’s ability to continue as a
going concern.
The Company’s primary source of operating funds since inception
has been cash proceeds from issuance of notes payable. The Company
intends to raise additional capital through private placements of
debt and equity securities, but there can be no assurance that
these funds will be available on terms acceptable to the Company,
or will be sufficient to enable the Company to fully complete its
development activities or sustain operations. Since December 31,
2015, the Company has raised $2.2 million through issuance of notes
payable. If the Company is unable to raise sufficient additional
funds, it will have to develop and implement a plan to further
extend payables, reduce overhead, or scale back its current
business plan until sufficient additional capital is raised to
support further operations. There can be no assurance that such a
plan will be successful.
A full-text copy of the company's annual report is available for
free at: https://is.gd/5HhpqR
Irving, Texas-based PFO Global, Inc. provides eyewear and
prescription lenses to eye care professionals and prescription
laboratories. The company has developed proprietary cloud based
software and electronic devices to streamline logistics and reduce
costs for its customers.
PRESIDENTIAL REALTY: Signs Letter of Intent to Acquire FCRETI
-------------------------------------------------------------
First Capital Real Estate Trust Incorporated and Presidential
Realty Corporation announced that the parties have executed a
letter of intent relating a proposed transaction pursuant to which
Presidential would acquire substantially all of the assets of
FCRETI in exchange for newly issued shares of Presidential. Suneet
Singal, CEO of First Capital stated that "This transaction further
advances our liquidity plan for the shareholders of FCRETI. This
plan was outlined in our strategic partnership with Forum Partners
earlier this year." Mr. Singal further stated "It is our goal to
effectuate FCRETI's liquidity plan through this transaction and
other events in the near future." In connection with executing the
Letter of Intent, the parties entered into a mutual 60-day
standstill agreement.
The proposed transaction is subject to, among other things,
satisfaction by the parties with the results of their due diligence
investigations, approval by the Boards of Directors of FCRETI and
Presidential and FCRETI shareholders of final terms, and as such,
there can be no assurance that a transaction will be consummated.
About FCRETI
First Capital Real Estate Trust Incorporated, is a public
non-traded REIT based in New York City and founded in 2012.
FCRETI, the Dual Strategy REIT, executes a dual investment strategy
which seeks to generate both stable cash distributions and growth
through the acquisition of stabilized, cash flowing real estate as
well as value added and opportunistic assets. FCRETI's portfolio
consists of 31 assets including land development, luxury resorts,
multifamily, gas stations, hotels, medical offices, transitional
housing, retail, and business offices.
About Precision Optics
Headquartered in Gardner, Massachusetts, Precision Optics
Corporation, Inc., has been a developer and manufacturer of
advanced optical instruments since 1982. The Company designs and
produces high-quality micro-optics, medical instruments and other
advanced optical systems. The Company's medical instrumentation
line includes laparoscopes, arthroscopes and endocouplers and a
world-class product line of 3-D endoscopes for use in minimally
invasive surgical procedures.
Precision Optics reported a net loss of $1.17 million on $3.91
million of revenues for the year ended June 30, 2015, compared to a
net loss of $1.16 million on $3.65 million of revenues for the year
ended June 30, 2014.
As of March 31, 2016, Presidential Realty had $1.15 million in
total assets, $2.33 million in total liabilities and a total
stockholders' deficit of $1.18 million.
Stowe & Degon LLC, in Westborough, Massachusetts, issued a "going
concern" qualification on the consolidated financial statements for
the year ended June 30, 2015, citing that the Company has suffered
recurring net losses and negative cash flows from operations, which
raises substantial doubt about its ability to continue as a going
concern.
QUICKSILVER RESOURCES: Disclosures Approved; Aug. 15 Plan Hearing
-----------------------------------------------------------------
The United States Bankruptcy Court for the District of Delaware
entered an order approving the Disclosure Statement explaining
Quicksilver Resources Inc.'s Amended Plan of Liquidation, and
related voting procedures on June 29, 2016. The Bankruptcy Court
has scheduled a hearing for August 15, 2016 to consider
confirmation of the Amended Plan of Liquidation.
On July 5, 2016, the Debtors filed with the Bankruptcy Court the
First Amended Joint Chapter 11 Plan of Liquidation for Quicksilver
Resources Inc. and its Affiliated Debtors (the "Amended Plan of
Liquidation") and the accompanying Disclosure Statement for First
Amended Joint Chapter 11 Plan of Liquidation for Quicksilver
Resources Inc. and its Affiliated Debtors (the "Disclosure
Statement"). The Bankruptcy Court entered an order approving the
Disclosure Statement and related voting procedures on June 29,
2016. The Bankruptcy Court has scheduled a hearing for August 15,
2016 to consider confirmation of the Amended Plan of Liquidation.
The classes and types of claims and interests in the Debtors are
described in the Amended Plan of Liquidation, and terms used below
refer to the terms set forth in the Amended Plan of Liquidation.
The Amended Plan of Liquidation generally provides that:
* each holder of an Allowed Other Priority Claim and Allowed
First Lien Claim will receive payment in full in cash;
* each holder of an Allowed Other Secured Claim, will receive,
as determined at the option of the Debtors or the Liquidation
Trustee, as applicable, (i) payment in full in cash, including
interest, to the extent applicable, (ii) delivery of the Collateral
securing such Allowed Other Secured Claim to the holder of such
Claim, or (iii) such other treatment as may be agreed to by the
holder of such Claim and the Debtors or the Liquidation Trustee, as
applicable;
* each holder of an Allowed Second Lien Secured Claim will
receive its pro rata share of the Second Lien Plan Consideration;
* each holder of an Allowed General Unsecured Claim will
receive its pro rata share of the Unsecured Plan Consideration;
* each holder of an Allowed Subordinated Notes Claim will
receive its pro rata share of the Unsecured Plan Consideration,
provided that the distributions otherwise intended for holders of
Allowed Subordinated Notes Claims will be distributed on a pro rata
basis to those holders of Allowed Claims entitled to the benefit of
subordination under the Subordinated Notes Indenture until such
Allowed Claims entitled to the benefit of subordination have been
satisfied in full;
* each holder of a 510 Claim will not receive any
distributions on account of such Claim;
* all Intercompany Interests will be cancelled and will not
receive any distributions; and
* all Non-Intercompany Interests will be cancelled and will
not receive any distributions.
As part of the global settlement resolving the claims of and
against the holders of Second Lien Claims, the holders of Second
Lien Claims agreed that they will not receive any distribution on
account of their Allowed Second Lien Deficiency Claims. The Initial
Plan of Liquidation contemplated that the plan may include a
provision that such agreement by the holders of Second Lien Claims
would not apply to any Allowed Unsecured Claims held by an entity
that challenged the terms of the global settlement. However, such a
provision ultimately was not included in the Amended Plan of
Liquidation.
The Amended Plan of Liquidation is subject to acceptance by certain
of the Debtors' creditors (as and to the extent required under the
Bankruptcy Code) and confirmation by the Bankruptcy Court. There
can be no assurances that the creditors of the Debtors will accept
the proposed Amended Plan of Liquidation, or that the Bankruptcy
Court will confirm the Amended Plan of Liquidation.
If the proposed Amended Plan of Liquidation is confirmed by the
Bankruptcy Court, the holders of the Company's common stock will
not receive a distribution on account of their equity interests and
the Company's common stock will be cancelled. If certain
requirements of the Bankruptcy Code are met, a Chapter 11 plan of
liquidation can be confirmed notwithstanding its rejection by the
Company's equity securityholders and notwithstanding the fact that
such equity securityholders do not receive or retain any property
on account of their equity interests under the plan. Even though
the Company's common stock continues to be quoted on the OTC Pink
Marketplace, under the proposed Amended Plan of Liquidation, it has
no underlying asset value and Company's stockholders should not
view the trading activity of its common stock on the OTC Pink
Marketplace or any other market or trading platform as being
indicative of the value the Company's stockholders will receive, if
any, in connection with any liquidation.
A copy of the First Amended Joint Chapter 11 Plan of Liquidation
for Quicksilver Resources Inc. and its Affiliated Debtors, is
available at https://is.gd/uzXM14
A copy of the Disclosure Statement for First Amended Joint Chapter
11 Plan of Liquidation for Quicksilver Resources Inc. and its
Affiliated Debtors, is available at https://is.gd/ItoJHL
About Quicksilver Resources
Quicksilver Resources Inc. (OTCQB: KWKA) is an exploration and
production company engaged in the development and production of
long-lived natural gas and oil properties onshore North America.
Based in Fort Worth, Texas, the company claims to be a leader in
the development and production from unconventional reservoirs
including shale gas, and coal bed methane. Following more than 30
years of operating as a private company, Quicksilver became public
in 1999.
The Company has U.S. offices in Fort Worth, Texas; Glen Rose,
Texas; Steamboat Springs, Colorado; Craig, Colorado and Cut Bank,
Montana. The Company's Canadian subsidiary, Quicksilver Resources
Canada Inc. is headquartered in Calgary, Alberta.
On March 17, 2015, Quicksilver Resources Inc. and certain of its
affiliates filed voluntary petitions for relief under Chapter 11
of
the Bankruptcy Code in Delaware. Quicksilver's Canadian
subsidiaries were not included in the Chapter 11 filing.
The Company's legal advisors are Akin Gump Strauss Hauer & Feld
LLP
in the U.S. and Bennett Jones in Canada. Richards Layton &
Finger,
P.A., is legal co-counsel in the Chapter 11 cases. Houlihan Lokey
Capital, Inc., is serving as financial advisor. Garden City Group
Inc. is the claims and noticing agent.
The Company's balance sheet at Dec. 31, 2014, showed $1.21 billion
in total assets, $2.35 billion in total liabilities and a
stockholders' deficit of $1.14 billion.
The U.S. Trustee for Region 3 appointed five creditors of
Quicksilver Resources Inc. to serve on the official committee of
unsecured creditors.
* * *
The Debtors won approval to sell substantially all assets to
BlueStone Natural Resources II, LLC. BlueStone offered $240
million to acquire Quicksilver's oil and gas assets located in the
Barnett Shale in the Fort Worth basin of North Texas, and $5
million for those assets located in the Delaware basin in West
Texas.
R&S ST. ROSE LENDERS: Court Approves Disclosure Statement
---------------------------------------------------------
The U.S. Bankruptcy Court for the District of Nevada approved the
outline of the Chapter 11 plan of liquidation proposed by R & S St.
Rose Lenders LLC, allowing the company to begin soliciting votes
from creditors.
R & S St. Rose has until August 17 to serve the solicitation
package and until November 4 to file the ballot summary.
Meanwhile, ballots accepting or rejecting the plan must be filed on
or before November 1, at 5:00 p.m.
A court hearing to consider confirmation of the plan will be held
on November 7, 8, 10, and 14. Objections to the plan are due by
October 17.
About R & S St. Rose Lenders
Las Vegas, Nevada-based R & S St. Rose Lenders, LLC, filed for
Chapter 11 bankruptcy protection (Bankr. D. Nev. Case No. 11-14973)
on April 4, 2011. Rose Lenders disclosed $12,041,574 in assets
and $24,502,319 in liabilities in its schedules, as amended. Its
primary asset consists of its claim in the scheduled amount of $12
million against R&S St. Rose, LLC.
Affiliate R & S St. Rose, LLC, filed a separate Chapter 11 petition
(Bankr. D. Nev. Case No. 11-14974) on April 4, 2011. According to
its schedules, it disclosed $16,821,500 in total assets and
$48,293,866 in total debts. Its primary asset consists of a fee
simple interest in approximately 38 acres of raw land located in
Henderson, Nevada.
R & S ST Rose Lenders' bankruptcy case is presently assigned to
Judge Mike K. Nakagawa.
R&S St. Rose Lenders has tapped Nedda Ghandi, Esq., of Ghandi Law
Offices as bankruptcy counsel. The Debtor previously had Larson &
Larson as counsel but the application was opposed by the U.S.
Trustee, prompting the withdrawal.
Commonwealth Land Title Insurance Company is represented by Scott
E. Gizer, Esq., at Early Sullivan Wright Gizer & McRae LLP, in Las
Vegas, Nevada, and Mary C.G. Kaufman, Esq., at Early Sullivan
Wright Gizer & McRae LLP, in Los Angeles, California.
Branch Banking and Trust Company is represented by J. Stephen Peek,
Esq., and Joseph G. Went, Esq., at Holland & Hart LLP, in Las
Vegas, Nevada.
REVLON CONSUMER: S&P Assigns 'B+' Rating on Proposed $400MM Notes
-----------------------------------------------------------------
S&P Global Ratings assigned its 'B+' issue-level rating and '4'
recovery rating to Revlon Consumer Products Corp.'s proposed
$400 million senior unsecured notes due 2024. The '4' recovery
rating indicates our expectation for average recovery (30%-50%;
lower half of the range) of principal in the event of a payment
default.
The notes will be an unsecured obligation of the company and rank
equally in right of payment with Revlon's existing and future
senior unsecured debt. The company plans to use the proceeds from
the offering, plus balance sheet cash, a $100 million draw under
its revolving credit facility, and $1.8 billion term loan B
proceeds, to fund its acquisition of Elizabeth Arden Inc.,
refinance its existing term loans, and repay existing Elizabeth
Arden debt. S&P expects that Revlon's leverage, pro forma for the
Elizabeth Arden acquisition, will increase to about 6x at end of
fiscal year ending Dec. 31, 2016.
RATINGS LIST
Revlon Consumer Products Corp.
Corporate Credit Rating B+/Negative/--
New Ratings
Revlon Consumer Products Corp.
Senior Unsecured
$400 million notes due 2024 B+
Recovery Rating 4H
RICEBRAN TECHNOLOGIES: Appoints Michael Goose as Unit President
---------------------------------------------------------------
Michael Goose, 36, entered into an employment agreement with
RiceBran Technologies effective July 11, 2016, pursuant to which he
was appointed RBT's president of Ingredient Sales and Marketing for
North America. Mr. Goose's appointment to this position was
pursuant to the Settlement Agreement previously disclosed in the
Company's July 11, 2016, Form 8-K.
Since December 2015, he has been a managing member of LF-RB
Management, LLC, a firm engaged in consulting, activism and asset
management. From January 2015 to November 2015, Mr. Goose was
managing director of H2O Venture Capital, a firm engaged in
consulting and private equity investments. From 2002 through 2014,
Mr. Goose held numerous positions at Hain Celestial Group, Inc. He
was involved in a wide variety of industry leading categories at
Hain Celestial, including snacks, meat alternatives, packaged
produce, crackers, kosher and poultry. Prior to his departure from
Hain Celestial, he was a director of marketing for Strategic
Brands, where he was responsible for annual sales and marketing
strategies of 12 brands. Mr. Goose also served as general manager
and director of marketing and sales of the Kosher Valley poultry
company, a joint venture between Hain Celestial and Pegasus
Capital. Mr. Goose holds a Bachelor of Arts degree from Dalhousie
University with a focus in economics.
The Employment Agreement has a term ending on June 30, 2017.
Pursuant to the Employment Agreement, RBT agreed to pay Mr. Goose
an annual salary of $200,000. Mr. Goose is eligible for RBT's
annual bonus program, pursuant to which he may be eligible to earn
an annual bonus each year up to 50% of his annual salary and a
discretionary bonus each year as determined by the RBT Board or
Compensation Committee.
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.
ROBERT LINN: Court Conditionally Approves Plan Outline
------------------------------------------------------
The U.S. Bankruptcy Court for the Middle District of Florida on
July 13 conditionally approved the disclosure statement detailing
the Chapter 11 plan of Robert Francis Linn, Jr., and Tammy Orr
Linn.
The court approved the disclosure statement on condition that the
Debtors file an addendum to the disclosure statement within 14 days
after its approval.
The disclosure statement meets the requirements of section 1125 of
the Bankruptcy Code but there are information missing, which can be
supplied by the filing of the addendum, according to court papers.
If no objections are filed within 10 days from the filing of the
addendum, the Clerk's Office will prepare an order approving the
disclosure statement and scheduling the hearing on confirmation of
the plan.
About The Linns
Robert Francis Linn, Jr., and Tammy Orr Linn sought protection
under Chapter 11 of the Bankruptcy Code (Bankr. M.D. Fla. Case No.
15-01801) on April 22, 2015.
The case is assigned to Judge Jerry A. Funk. The Debtors are
represented by Richard A. Perry, Esq.
RUTH M DIETZMAN: Unsecureds to be Paid within 24 Months
-------------------------------------------------------
Ruth M. Dietzman filed with the U.S. Bankruptcy Court for the
Western District of Wisconsin a Plan of Reorganization and
accompanying Disclosure Statement. The amortization on these
obligations has generally been extended to provide adequate cash
flow and to service debt.
Class 4 - Nonpriority Unsecured Claims (impaired) are in the
approximate amount of $2,750. All of these allowed claims are
impaired in that the claimants will be paid with interest at the
rate of 0% amortized over 24 months at the rate of approximately
$114.58 per month.
The Debtor's income will generate the funds needed to implement the
Plan. All assets of the bankruptcy estate will re-vest into the
Debtor. The Debtor holds no causes of action for preference or
avoidance recoveries, and does not anticipate receiving funds from
any such claims. The Debtor's income consists of reliable railroad
retirement payments and rental income from a lease of the farm
property she has with Karen Thompson and Scott Dietzman.
The Disclosure Statement dated July 6, 2016, is available at:
http://bankrupt.com/misc/wiwb16-11979-26.pdf
The Disclosure Statement was filed by the Debtor's counsel:
KREKELER STROTHER, s.c.
Kristin J. Sederholm, Esq.
Ryan A. Blay, Esq.
2901 W. Beltline Highway, Suite 301
Madison, W153713
Tel: (608) 258-8555
E-mail: ksederholm@ks-lawfirm.com
rblay@ks-lawfirm.com
Ruth M Dietzman operated Countrywide Custom Homes, LLC, which
specialized in contracting for the development of custom homes.
She filed for Chapter 11 bankruptcy protection (Bankr. W.D. Wis.
Case No. 16-11979) on June 1, 2016. Kristin J. Sederholm, Esq.,
serves as the Debtor's bankruptcy counsel.
SABRE HOLDINGS: S&P Assigns 'BB-' Rating on $1BB Sr. Facility
-------------------------------------------------------------
S&P Global Ratings assigned its 'BB-' issue-level rating and '3'
recovery rating to Southlake, Texas-based travel technology
companies Sabre Holdings Corp. and Sabre GLBL Inc.'s (collectively,
Sabre) $1 billion senior secured credit facility, which consists of
a $400 million senior secured revolving credit facility and a $600
million senior secured incremental term loan A due in 2021. The
'3' recovery rating indicates S&P's expectation for meaningful
recovery (50%-70%; upper half of the range) of principal in the
event of a payment default.
The $400 million revolver replaces Sabre's existing $405 million
revolving credit facilities. The companies used the proceeds from
the $600 million incremental term loan A to repay $470 million
revolving and term loan B debt. Sabre used the remaining proceeds
to pay fees and increase its cash balance. The new senior secured
credit facility will mature on July 18, 2021, subject to an earlier
springing maturity of Nov. 19, 2018, if the term loan B hasn't been
refinanced by Nov. 19, 2018.
S&P's 'BB-' corporate credit rating and stable rating outlook on
Sabre are unchanged. As of March 31, 2016, the company's adjusted
debt leverage was 3.9x, which is within S&P's threshold of 3x-4x
for the rating. S&P expects debt leverage to decline to the mid-3x
area by the end of 2016 (absent any potential litigation settlement
with US Airways Inc., which could increase leverage).
RATINGS LIST
Sabre Holdings Corp.
Corporate Credit Rating BB-/Stable/--
New Ratings
Sabre GLBL Inc.
Senior Secured
$400 mil revolving credit facility due 2021 BB-
Recovery Rating 3H
$600 mil incremental term loan A due in 2021 BB-
Recovery Rating 3H
SEVENTY SEVEN: Assumption of $100-Mil. Exit Facility Letter Okayed
------------------------------------------------------------------
U.S. Bankruptcy Judge Laurie Selber Silverstein has authorized
Seventy Seven Finance Inc. and its affiliated debtors to assume:
(1) a $100,000,000 Senior Secured Asset-Based DIP and
$100,000,000 Exit Revolving Loan Facility Commitment Letter
("Commitment Letter") and a Joinder Agreement to $100,000,000
Senior Secured Asset-Based DIP and $100,000,000 Exit Revolving Loan
Facility Commitment Letter ("Joinder Agreement") between Seventy
Seven Energy, Inc. ("SSE") and Wells Fargo Bank, National
Association and Bank of America; and
(2) a Commitment Fee Letter between SSE and Wells Fargo.
The Debtors relate that in the Commitment Letter, the Commitment
Parties have agreed to make available $100 million under the Exit
Facility.
Following emergence, the Debtors plan to utilize the availability
under the Exit Facility to provide themselves with liquidity to:
(i) repay outstanding allowed administrative expenses and
allowed claims in accordance with the Plan, including obligations
under the DIP Financing;
(ii) fund costs, expenses and fees in connection with the Exit
Facility; and
(iii) fund working capital for post-emergence operations and for
other general corporate purposes.
The Exit Facility will be available for a term ending June 25,
2019, and will be secured by first-priority liens and security
interests on all collateral securing the DIP Facility and by
third-priority liens and security interests on all collateral that
secures the Debtors' Term Loan. The Debtors agreed to the terms of
the Exit Facility after consulting with their advisors on the
possibility of an out-of-court financing and after reaching a
determination that the amount and pricing of the Exit Facility
represented a reasonable exercise of the Debtors' business
judgment.
The Fee Letter sets forth the Debtors' commitment to the Commitment
Parties, as an inducement to execute and deliver the Commitment
Letter, to pay certain fees in connection with the Exit Facility,
including, among others, a Facility Fee in the amount of $850,000.
About Seventy Seven Energy
Headquartered in Oklahoma City, Seventy Seven Energy Inc. (SSE) --
http://www.77nrg.com/-- provides wellsite services and equipment
to U.S. land-based exploration and production customers. SSE's
services include drilling, hydraulic fracturing and oilfield
rentals and its operations are geographically diversified across
many of the most active oil and natural gas plays in the onshore
U.S., including the Anadarko and Permian basins and the Eagle Ford,
Haynesville, Marcellus, Niobrara and Utica shales.
Each of Seventy Seven Finance Inc., Seventy Seven Energy Inc.,
Seventy Seven Operating LLC, Great Plains Oilfield Rental, L.L.C.,
Seventy Seven Land Company LLC, Nomac Drilling, L.L.C., Performance
Technologies, L.L.C., PTL Prop Solutions, L.L.C., SSE Leasing LLC,
Keystone Rock & Excavation, L.L.C. and Western Wisconsin Sand
Company, LLC filed a voluntary petition under Chapter 11 of the
Bankruptcy Code (Bankr. D. Del. Case Nos. 16-11409 to 16-11419,
respectively) on June 7, 2016.
The Debtors listed total assets of $1.77 billion and total
liabilities of $1.72 billion.
The Debtors have engaged Baker Botts LLP as general bankruptcy
counsel; Morris, Nichols, Arsht & Tunnell LLP as co-counsel; Lazard
Freres & Co. LLC as investment banker; Alvarez & Marsal as
restructuring advisor; and Prime Clerk LLC as notice, claims and
balloting agent.
Judge Laurie Selber Silverstein is assigned to the cases.
SEVENTY SEVEN: Can Assume Restructuring Support Agreement
---------------------------------------------------------
U.S. Bankruptcy Judge Laurie Selber Silverstein authorized Seventy
Seven Finance Inc. and its debtor affiliates to assume the Second
Amended and Restated Restructuring Support Agreement, dated May 12,
2016, among the Debtors, certain lenders under the Term Loan Credit
Agreement, certain lenders under the Incremental Term Supplement,
group of holders of the OpCo Notes, and an ad hoc group of holders
of the HoldCo Notes.
The Debtors' Joint Prepackaged Chapter 11 Plan of Reorganization,
which will substantially reduce the Debtors' debt burden and
solidify the Debtors' long-term growth and operating performance,
is based on the restructuring term sheet signed by the Parties.
The Debtors, in consultation with the Restructuring Support
Parties, subsequently reduced the terms set forth in the Term Sheet
to writing, resulting in the Plan. On May 9, 2016, as contemplated
in the Restructuring Support Agreement, the Debtors commenced
solicitation of votes on the Plan by distributing a copy of the
Plan, the related Disclosure Statement and a ballot to the Voting
Classes. The deadline for voting on the Plan was June 3, 2016.
Each of the Voting Classes voted overwhelmingly to accept the Plan.
The Term Sheet contemplates that the Debtors will reorganize as a
going concern and continue their day-to-day operations
substantially as currently conducted. The restructuring
contemplated by the Term Sheet and the Plan will reduce the
Debtors' funded debt obligations by at least $1.1 billion and
incorporates the following principal terms:
1) A new senior secured asset-based revolving loan and letter of
credit facility, which facility will have a maturity date of June
25, 2019 and a maximum commitment amount of $100 million. The
first lien debt will include financial covenants and other terms
and conditions, including those set forth in the Exit Facility
Commitment Letter.
2) A conversion of $1.1 billion in aggregate principal amount of
OpCo Notes and HoldCo Notes into 100% of the New HoldCo Common
Shares.
If the Plan is consummated as contemplated by the Term Sheet, and
all Voting Classes vote to accept the Plan (i.e. one-half in number
and two-thirds in amount), holders of the Existing HoldCo Interests
will receive warrants to purchase New HoldCo Common Shares on a Pro
Rata basis despite the present valuation of the Company. The
Debtors and the Restructuring Support Parties provided an
opportunity for holders of Existing HoldCo Interests to participate
in the long-term growth of the Company so as to ensure an
expeditious and efficient emergence from these Chapter 11 Cases.
The New Warrants provided to holders of Existing HoldCo Interests
will be exercisable at any time until their expiration date for a
per share price based upon a total equity value of: (i) for the New
B Warrants, $1.788 billion; and (ii) for the New C Warrants, $2.5
billion. The expiration date for the New B Warrants will be 5
years and for the New C Warrants 7 years from the Effective Date of
the Plan, in each case subject to earlier expiration upon the
occurrence of certain extraordinary events. If the terms for
exercise of the New Warrants are not met before the applicable
expiration date, then holders of such Warrants will not realize any
value under the terms of the New Warrants.
Seventy Seven Finance Inc. and its affiliated debtors are
represented by:
Robert J. Dehney, Esq.
Andrew R. Remming, Esq.
MORRIS, NICHOLS, ARSHT & TUNNELL LLP
1201 N. Market St., 16th Flr.
PO Box 1347
Wilmington, DE 19899-1347
Telephone: (302)658-9200
Facsimile: (302)658-3989
E-mail: rdehney@mnat.com
aremming@mnat.com
- and -
Emanuel C. Grillo, Esq.
Christopher Newcomb, Esq.
BAKER BOTTS LLP
30 Rockefeller Plaza
New York, NY 10112
Telephone: (212)892-4000
E-mail: emanuel.grillo@bakerbotts.com
chris.newcomb@bakerbotts.com
About Seventy Seven Energy
Headquartered in Oklahoma City, Seventy Seven Energy Inc. (SSE) --
http://www.77nrg.com/-- provides wellsite services and equipment
to U.S. land-based exploration and production customers. SSE's
services include drilling, hydraulic fracturing and oilfield
rentals and its operations are geographically diversified across
many of the most active oil and natural gas plays in the onshore
U.S., including the Anadarko and Permian basins and the Eagle Ford,
Haynesville, Marcellus, Niobrara and Utica shales.
Each of Seventy Seven Finance Inc., Seventy Seven Energy Inc.,
Seventy Seven Operating LLC, Great Plains Oilfield Rental, L.L.C.,
Seventy Seven Land Company LLC, Nomac Drilling, L.L.C., Performance
Technologies, L.L.C., PTL Prop Solutions, L.L.C., SSE Leasing LLC,
Keystone Rock & Excavation, L.L.C. and Western Wisconsin Sand
Company, LLC filed a voluntary petition under Chapter 11 of the
Bankruptcy Code (Bankr. D. Del. Case Nos. 16-11409 to 16-11419,
respectively) on June 7, 2016.
The Debtors listed total assets of $1.77 billion and total
liabilities of $1.72 billion.
The Debtors have engaged Baker Botts LLP as general bankruptcy
counsel; Morris, Nichols, Arsht & Tunnell LLP as co-counsel; Lazard
Freres & Co. LLC as investment banker; Alvarez & Marsal as
restructuring advisor; and Prime Clerk LLC as notice, claims and
balloting agent.
Judge Laurie Selber Silverstein is assigned to the cases.
SKII LLC: Exclusive Plan Filing Period Extended to Sept. 26
-----------------------------------------------------------
The Hon. Brenda T. Rhoades of the U.S. Bankruptcy Court for the
Eastern District of Texas has extended, at the behest of Skii, LLC,
and Swisher Courts LLC, the Debtors' exclusive periods to file a
Chapter 11 plan or plans and to solicit acceptances of the plan(s)
for 90 days through and including Sept. 26, 2016, and Nov. 25,
2016, respectively.
As reported by the Troubled Company Reporter on June 7, 2016, the
Debtors are in the middle of trying to resolve its issues with a
secured creditor. The parties are working to schedule a mediation,
which, if successful, will resolve the issues with the secured
creditor. If exclusivity terminates and competing Chapter 11 plans
are filed, resources and energy will necessarily be diverted from
negotiating a consensual Chapter 11 plan to prosecuting and
defending competing Chapter 11 plans.
Headquartered in Lake Dallas, Texas, Skii, LLC, filed for Chapter
11 bankruptcy protection (Bankr. E.D. Texas Case No. 16-40359) on
Feb. 29, 2016, estimating its assets and liabilities at between $1
million and $10 million each. The petition was signed by Jodi
Bieke, managing member.
Larry A. Levick, Esq., at Singer & Levick, P.C., serves as the
Debtor's bankruptcy counsel.
SLG INNOVATION: To Test iTRS's $950,000 Bid at Aug. 17 Auction
--------------------------------------------------------------
SLG Innovation, Inc. has filed a plan of reorganization which
includes an offer from iT Resource Solutions.net, Inc., to purchase
49% of the outstanding shares of the corporation. The purchase
price provides for $950,000 in cash funding at Plan confirmation.
As required by the Bankruptcy code the Debtor is required to seek
other better and higher offers at public notice to satisfy the
absolute priority rule under Bankruptcy Code.
Accordingly, a public auction for SLG Innovation's interest will
take place on Aug. 17, 2016, at 10:00 a.m., before the Hon. Janet
S. Baer of the U.S. Bankruptcy Court for the Northern District of
Illinois, in Courtroom 615 at the Everett McKinley Dirksen Federal
Building, 219 South Dearborn Street, Chicago, Illinois, in the
event the Debtor receives a higher offer for their interests. In
the event the Debtor seeks to confirm their Chapter 11 plan of
reorganization over the objection of a dissenting class, the Debtor
intends to satisfy the absolute priority rule by conducting a new
value auction for the Debtor's equity shares.
The New Value Contribution, which will be funded by an investment
from ITRS, or their designee and the current equity Shareholder, Ed
Burns. This investment will constitute the stalking horse offer to
purchase the Debtor's Interests subject to the terms and conditions
set forth in this Plan. The terms of the Stalking Horse Offer and
the Auction shall be publicly disseminated through an advertisement
in the Chicago Tribune, and Wall Street Journal, and directly to
all other parties in interest as well as other potential investors
whom debtor has had discussions with during the pending Chapter 11
proceeding.
The offer being proposed will provide an initial capitalization
through a $300,000 cash capitalization, $150,000 from ITRS and
$150,000 from Ed Burns, plus the procurement and or guarantee by
the investors of financing facilities in the amount of $650,000,
for a total of $950,000 cash available on the plan's effective
date.
New shares of stock will be issued to Ed Burns 51%, ITRS 49%.
For additional information, contact:
Edmund G. Urban, III, Esq.
Urban & Burt, LTD
5320 West 159th Street Suite 501
Oak Forest, IL 60452
Tel: (708) 687-5200
Email: iii@urbanburt.com
About SLG Innovation
SLG Innovation, Inc. sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. N. D. Ill. Case No. 15-42182) on December
15, 2015. The petition was signed by Ed Burns, president and CEO.
The case is assigned to Judge Janet S. Baer. At the time of the
filing, the Debtor estimated its assets at $500,000 to $1 million
and debts at $1 million to $10 million.
SNUG HARBOR: Wants Exclusive Plan Filing Deadline Moved to Oct. 8
-----------------------------------------------------------------
Snug Harbor Marina, LLC, asks the U.S. Bankruptcy Court for the
District of New Jersey to extend the exclusive periods for the
Debtor to file a Plan of Reorganization until Oct. 8, 2016, and the
exclusive right to solicit acceptances of the Plan until Dec. 7,
2016.
A hearing on the Debtor's request is set for Aug. 9, 2016, at 10:00
a.m.
The Debtor's exclusive right to file a plan of reorganization in
this case currently expires on Aug. 9, 2016.
The Debtor says that it will not be in a position to file a Chapter
11 plan by the Aug. 9 deadline and requires an extension of the
exclusive time to file a plan of reorganization and
to solicit acceptances for several valid reasons. The Debtor needs
additional time to complete a refinancing of the business' debt or
sale of the property, and the Bar Dates for creditors to file
proofs of claim have not yet expired.
The Debtor has been working diligently to obtain a refinancing or
sale of the property. The Debtor has made significant progress, as
shown by the filed application for retention of a realtor and that
he has entered into a listing agreement with ReMax at the Shore.
Along with marketing the property to sell, the Debtor is currently
in ongoing discussions with loan brokers to obtain a debt
refinancing for its business.
Once the Debtor has entered into an agreement of sale or
refinancing agreement, there will be clarity in Debtor's financial
situation that will permit him to focus on formulating,
negotiating, preparing and proposing a Plan of Reorganization to
pay its largest secured creditor Harvest Community Bank, and any
remaining creditors and parties in interest as possible.
The Court has set Aug. 24, 2016, as the general bar date and Sept.
24, 2016, as the governmental bar date. Furthermore since the bar
dates have not expired, additional proofs of claim could be filed
impacting the treatment of all claims in the Disclosure Statement
and Plan of Reorganization.
After the Bar Dates have passed the Debtor and counsel will need
time to review the proofs of claim in order to determine the total
amount of character of all claims asserted against the estate.
The Debtor has been working diligently working with his counsel to
prepare its asset valuations and financial projections to formulate
a feasible Plan of Reorganization, but needs to ascertain the final
total amount of filed proofs of claim from its creditors.
The Debtor further asserts that if the exclusivity period is not
extended as requested, the Debtor's efforts to reorganize will be
compromised to the detriment of the estate.
No harm or prejudice will inure to the creditors of the Debtor if
the exclusivity period is extended and the Debtor is allowed
additional time to formulate a Plan of Reorganization.
To provide sufficient time for Debtor to sell the business or
secure a refinancing agreement, and for the Bar Dates to expire,
the Debtor is requesting that its exclusive period to file a plan
be extended for an additional period of 60 days.
The Debtor's counsel can be reached at:
SUBRANNI ZAUBER LLC
Scott M. Zauber, Esq.
Margaret A. Holland, Esq.
Willow Ridge Executive Office Park
750 Route 73 South, Suite 307B
Marlton, NJ 08053
Tel: (609) 347-7000
Fax: (609) 345-4545
E-mail: szauber@subranni.com
mholland@subranni.com
Snug Harbor Marina, LLC, owns and operates a fishing marina located
at 926 Ocean Drive, Cape May, New Jersey. The marina has been
operating since 2002. The fishing marina is open all year
providing boat slips, docks along with a store selling boating and
fishing gear, located on the site. The Debtor owns the real estate
on which the marina business operates.
The Debtor filed for Chapter 11 bankruptcy protection (Bankr. D.
N.J. Case No. 16-16895) on April 11, 2016, listing $6.46 million in
total assets and $3.78 million in total liabilities. The petition
was signed by Ralph P. Farrell, member.
Judge Andrew B. Altenburg Jr. presides over the case.
Scott M. Zauber, Esq., at Subranni Zauber LLC serves as the
Debtor's bankruptcy counsel.
ST. JOSEPH'S COLLEGE: Moody's Affirms Ba1 Rating on $25MM Debt
--------------------------------------------------------------
Moody's Investors Service has affirmed the Ba1 rating on
St. Joseph's College's $25 million of rated debt issued through the
Dormitory Authority of the State of New York as well as the Ba1
long-term issuer rating. The outlook is negative.
St. Joseph's Ba1 rating incorporates the college's mid-size
operating scale with two distinct campuses (Brooklyn and Long
Island), low financial leverage, and management's improved ability
to adapt operations to lower enrollment and halt outsized endowment
spending. Offsetting challenges include a high dependence on
student charges with five years of declining enrollment and weaker
than anticipated FY 2015 operations, including insufficient cash
flow to cover debt service. Furthermore, liquidity has thinned with
the college's use of reserves to cover accumulated operating
deficits through FY 2015. The rating incorporates expectations of
enrollment stabilization in fall 2016 and close to break even
operations for FY 2016.
Rating Outlook
The negative outlook incorporates expectations of continued weak
debt service coverage and challenged operating performance, even as
enrollment begins to stabilize and as management works to improve
operating performance without elevated endowment spending. The
outlook also includes anticipated financial commitments and risk
associated with a potential privatized student housing project at
the Long Island campus, which currently does not offer housing.
Factors that Could Lead to an Upgrade
Stabilization of enrollment combined revenue growth, and
sustainable improvement in operating performance
Significant growth of liquid reserves
Factors that Could Lead to a Downgrade
FY 2016 results weaker than expected (approximately break even)
or inability to stabilize enrollment by fall 2016Further
reduction of already weakened liquidityMaterial increase in
debt without improved cash flow to support debt service or
anticipated financial commitment to privatized student housing
Legal Security
Rated debt is a general obligation of the college with a security
interest in tuition and fees equal to maximum annual debt service
and a cash-funded debt service reserve fund equal to MADS. In
addition, DASNY has a mortgage interest on the projects, which
include athletic facilities on the Brooklyn and Patchogue campuses,
a parking facility at the Brooklyn campus, and certain lab space on
the Patchogue campus, and a security interest in certain fixtures,
furnishings and equipment and may assign these interests to the
trustee. Unless the mortgage and security interest are assigned to
the trustee, neither is pledged to bondholders.
Use of Proceeds
Not applicable.
Obligor Profile
St. Joseph's College is a mid-sized private college with campuses
in Brooklyn and Long Island. The college enrolled approximately
4,100 students in fall 2015 and had FY 2015 operating revenue of
$78 million.
Methodology
The principal methodology used in this rating was Global Higher
Education published in November 2015.
STANFORD FINANCIAL: Receiver Reached Settlement with Underwriters
-----------------------------------------------------------------
The court-appointed receiver for Stanford International Bank Ltd.
("SIBL") has reached an agreement to settle claims asserted or that
could have been asserted against Certain Underwriters' at Lloyd's
of London, Arch Specialty Insurance Co., and Lexington Insurance
Company relating to or in any way concerning SIBL or underwriters'
insurance policies issued to SIBL and other Stanford entities.
As part of the settlement, the receiver requested orders which
permanently enjoin all persons, including Stanford investors from
bringing any legal proceeding or cause of action arising from or
relating to the Stanford entities and underwriters' insurance
polices issued to SIBL and the other Stanford entities against
underwriters or the other underwriters released parties.
Copies of the settlement agreement with underwriters, the proposed
bar order, and other settlement documents are available at
http://www.stanfordfinancialreceivership.com/
All persons who wish to object must file written objections with
the court by Sept. 30, 2016.
About Stanford Group
The Stanford Financial Group was a privately held international
group of financial services companies controlled by Allen Stanford,
until it was seized by United States (U.S.) authorities in early
2009.
Domiciled in Antigua, Stanford International Bank Limited --
http://www.stanfordinternationalbank.com/-- is a member of
Stanford Private Wealth Management, a global financial services
network with US$51 billion in deposits and assets under management
or advisement. Stanford Private Wealth Management served more than
70,000 clients in 140 countries.
On Feb. 16, 2009, the United States District Court for the Northern
District of Texas, Dallas Division, signed an order appointing
Ralph Janvey as receiver for all the assets and records of Stanford
International Bank, Ltd., Stanford Group Company, Stanford Capital
Management, LLC, Robert Allen Stanford, James M. Davis and Laura
Pendergest-Holt and of all entities they own or control. The
February 16 order, as amended March 12, 2009, directs the Receiver
to, among other things, take control and possession of and to
operate the Receivership Estate, and to perform all acts necessary
to conserve, hold, manage and preserve the value of the
Receivership Estate.
The district court case is Securities and Exchange Commission v.
Securities Investor Protection Corp., 11-mc-00678, U.S. District
Court, District of Columbia (Washington).
The U.S. Securities and Exchange Commission charged before the U.S.
District Court in Dallas, Texas, Mr. Stanford and three of his
companies for orchestrating a fraudulent, multi-billion dollar
investment scheme centering on an US$8 billion Certificate of
Deposit program.
A criminal case was pursued against him before the U.S. District
Court in Houston, Texas. Mr. Stanford pleaded not guilty to 21
charges of multi-billion dollar fraud, money-laundering and
obstruction of justice. Assistant Attorney General Lanny Breuer,
as cited by Agence France-Presse News, said in a 57-page indictment
that Mr. Stanford could face up to 250 years in prison if convicted
on all charges. Mr. Stanford surrendered to U.S. authorities after
a warrant was issued for his arrest on the criminal charges.
STWC HOLDINGS: B.F. Borges Raises Going Concern Doubt on Losses
---------------------------------------------------------------
STWC Holdings, Inc., filed with the Securities and Exchange
Commission its annual report on Form 10-K disclosing a net loss of
$3.49 million on $37,000 of total revenues for the fiscal year
ended January 31, 2016, compared to a net loss of $2.01 million on
$35,500 of total revenues for the fiscal year ended in 2015.
At Jan. 31, 2016, the company had total assets of $1.60 million,
total liabilities of $4.02 million, and total stockholders' deficit
of $2.43 million.
B.F. Borgers CPA PC in Lakewood, Colo., issued a "going concern"
qualification on the consolidated financial statements for the
fiscal year ended Jan. 31, 2016, citing that the Company's
significant operating losses raise substantial doubt about its
ability to continue as a going concern.
Since inception, the Company has not achieved profitable
operations, and has cumulative losses through January 31, 2016, of
$5,578,692, net of a $3,222,535 collection reserve for amounts due
from the Regulated Entities. The Company's losses to date raise
substantial doubt about its ability to continue as a going concern.
Its ability to continue as a going concern is dependent upon them
achieving a sustainable level of profitability. The Company intends
to continue financing its future development activities and its
working capital needs largely from the private sale of our
securities, with additional funding from other traditional
financing sources, including convertible term notes, until such
time that funds provided by operations are sufficient to fund
working capital requirements.
A full-text copy of the company's 10-K report is available for free
at:
https://is.gd/vs0GU1
Lakewood, Colo.-based STWC Holdings, Inc., formerly Strainwise,
Inc., provides branding, marketing, administrative and consulting
services; accounting and financial services, and compliance
services.
SUNEDISON INC: $24MM Sale of Interests to 93LF Approved
-------------------------------------------------------
Judge Stuart M. Bernstein entered an order authorizing SunEdison,
Inc., and First Wind California Holdings, LLC, to sell or transfer
their equity interests in (a) Imperial Valley Solar 3, LLC
("IVS3"), (b) Imperial Valley Solar 4, LLC ("IVS4"), and (c) Sun
Lake Solar, LLC, to 93LF 8ME LLC in accordance with that certain
Purchase and Sale Agreement, dated as of July 1, 2016.
The Court held a hearing on July 14, 2016 to approve the proposed
sale transaction as set forth in the PSA.
A copy of the 24-page Sale Order is available for free at:
http://bankrupt.com/misc/SunEdison_785_Sale_Ord.pdf
The Debtors had sought approval to sell or transfer their equity
interests in IVS3, IVS4, and Sun Lake Solar for $24,000,000.
The Debtors estimate that the net purchase price immediately
available to the Debtors' estates (excluding the Escrowed Funds)
will be $5,000,000.
8minutenergy SPV1, LLC, a Delaware limited liability company ("8ME
SPV1") and an affiliate of 8minutenergy Renewables ("8ME"), and
Imperial Valley Solar Power, LLC, a Delaware limited liability
company ("IVSP") and an affiliate of the Seller Parties, executed a
Joint Development Agreement ("JDA"), dated as of Sept. 3, 2010, to
co-develop, own and manage utility-scale solar photovoltaic
projects in the western United States, including the Project. The
terms and continued viability of the JDA with respect to the
Project are currently subject to dispute among the 8ME JDA Parties,
IVSP and certain of the Seller Parties ("JDA Dispute").
Ultimately, given 8ME's familiarity with the Project, the price
offered by the Buyer, the potential expiration of the rights and
permits, the imminent deadline to submit renewal materials for
interconnection rights, and the potential impact of the JDA Dispute
upon the value which the Debtors could achieve for the Equity
Interests from other bidders, the Debtors concluded, in an exercise
of their business judgment, that the proposed Sale Transaction with
the Buyer constitutes the highest or otherwise best value that the
Debtors could achieve for the Equity Interests.
About SunEdison, Inc.
SunEdison, Inc., (OTC PINK: SUNEQ) 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 $20.7 billion and total debt
of $16.1 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, Rothschild
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. The Debtors
employed PricewaterhouseCoopers LLP as financial advisors; and KPMG
LLP as their auditor and tax consultant.
An official committee of unsecured creditors has been appointed in
the case. The committee tapped Weil, Gotshal & Manges LLP as its
general bankruptcy counsel and Morrison & Foerster LLP as special
counsel.
SUNEDISON INC: U.S. Trustee Opposes Key Employee Retention Plan
---------------------------------------------------------------
BankruptcyData.com reported that the U.S. Trustee assigned to the
SunEdison case filed with the U.S. Bankruptcy Court an objection to
the Debtors' motion for an order (i) approving implementation of
the Company's non-insider key employee retention plan and (ii)
approving implementation of certain sale incentive plans. The
objection asserts, "The United States Trustee objects to the
approval of the Motion because the bonus plans do not satisfy the
requirements of Section 503(c) of the Bankruptcy Code. The Debtors
seek to implement two alleged incentive plans for two admitted
insiders and sixty-eight undisclosed employees. The incentive
plans, however, fail to disclose the amount of the bonuses to be
awarded or the titles of a majority of the award recipients. In
addition, the incentive plans do not contain difficult targets to
be reached for bonuses to be awarded. Specifically, bonuses are
awarded merely upon the sale of assets at the discretion of
management. The plans, therefore, appear to be primarily for
retentive purposes. As primarily retention plans they cannot be
approved unless the Court finds evidence in the record that each
insider has a bona fide job offer from another business at the same
or greater rate of compensation, the services of the insider are
essential to the survival of the business, and the proposed bonus
meets certain monetary benchmarks. None of these factors have been
addressed by the Debtors. The Motion, with respect to the
incentive plans, must therefore be denied. The Debtors also seek
to implement a retention plan for 126 alleged non-insiders. With
respect to this plan, the Debtors fail to meet their burden to
establish that the recipients, who admittedly include officers and
directors, are not insiders. The Debtors do not provide specific
information regarding the job descriptions, the reporting
relationships or whether each officer and director they propose to
pay under the retention plan was appointed by the Board."
About SunEdison, Inc.
SunEdison, Inc., (OTC PINK: SUNEQ) 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 $20.7 billion and total
debts of $16.1 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, Rothschild
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. The Debtors
employed PricewaterhouseCoopers LLP as financial advisors; and KPMG
LLP as their auditor and tax consultant.
An official committee of unsecured creditors has been appointed in
the case. The committee tapped Weil, Gotshal & Manges LLP as its
general bankruptcy counsel and Morrison & Foerster LLP as special
counsel.
TCC GENERAL CONTRACTING: Cash Collateral Use OK Up to July 26
-------------------------------------------------------------
Judge Sheri Bluebond of the U.S. Bankruptcy Court for the Central
District of California, authorized TCC General Contracting, Inc. to
use cash collateral for the period from June 22, 2016 through July
26, 2016.
The Debtor sought to use cash collateral to operate its business
and avoid immediate and irreparable harm.
The Debtor identified Windset Capital Corporation, IOU Financial
and Knight Capital Funding II, LLC as its secured creditors.
Judge Bluebond granted the secured creditors replacement liens in
all the Debtor's post-petition assets, with the same extent,
validity and priority as their respective liens and security
interests in the prepetition collateral.
A continued hearing on the Debtor's cash collateral use is
scheduled on July 26, 2016 at 10:30 a.m.
A full-text copy of the Order, dated July 18, 2016, is available at
https://is.gd/4uHFcl
Knight Capital Funding II, LLC is represented by:
David B. Lally, Esq.
LAW OFFICES OF DAVID BRIAN LALLY
26895 Aliso Creek Rd
Aliso Viejo, CA 92656
Telephone: (949)500-7409
Facsimile: (949)861-9250
Email: davidlallylaw@gmail.com
About TCC General Contracting, Inc.
TCC General Contracting, Inc., operates a water and fire
restoration company in Lancaster, California. It employs 30
employees and, based on gross revenues year to date, would realize
gross revenues of perhaps $3.3 million. It filed for Chapter 11
bankruptcy protection (Bankr. C.D. Calif. Case No. 16-18301) on
June 22, 2016. The bankruptcy petition was signed by Thomas C.
Conroy IV, president.
The Debtor is represented by Steven R. Fox, at the Law Offices of
Steven R. Fox. The case is assigned to Judge Sheri Bluebond.
The Debtor estimated assets and debts at $500,000 to $1,000,000.
TECK RESOURCES: DBRS Confirms BB(high) Issuer Rating
----------------------------------------------------
DBRS Limited confirmed the Issuer Rating of Teck Resources Limited
(Teck or the Company) at BB (high). DBRS has also assigned a new
Guaranteed Senior Unsecured Notes rating of BB (high), which
applies to (1) the guaranteed notes issued in June 2016 and (2) the
existing credit facilities. In addition, DBRS has downgraded the
Company’s existing Senior Unsecured Notes rating to BB from BB
(high) to reflect structural subordination. The trends remain
Negative despite some evidence of zinc and steelmaking coal market
improvement because of the weak financial profile and potential for
further weakness in the global zinc, coal and copper markets. DBRS
has also assigned a recovery rating of RR1 to the Guaranteed Senior
Unsecured Notes and has downgraded the recovery rating on the
Senior Unsecured Notes to RR4 from RR3.
The Company's May 2016 decision to issue USD 1.25 billion of
Guaranteed Senior Unsecured Notes and repurchase nearer-term
maturities represented a prudent trade-off. While the coupon rates
for the Guaranteed Senior Unsecured Notes issues of 8.0% and 8.5%
are higher than Teck’s existing debt, the issuances ensure that
the liquidity position will remain solid until the Fort Hills oil
sands project achieves commercial production, possibly at the end
of 2018.
The financial risk profile has continued to weaken due to
unfavourable market conditions. Cash flow-to-debt and
debt-to-EBITDA moved further down the B rating range, while
EBITDA-to-interest moved further down the BB rating category.
Debt-to-capital improved modestly after a debt repayment in Q4
2015.
DBRS projects that the worst may be almost over, with 2016 possibly
representing the bottom of the credit-metrics-weakening trend that
began in 2012. DBRS anticipates a modest improvement in operating
performance in the second half of 2016 and a more noticeable
improvement in 2017. Consensus expectations for better zinc and
metallurgical coal prices are consistent with certain
fundamental/structural drivers, such as significant mine closures
and inventory depletions in the zinc market and capacity reductions
both in North America and in China in the coal market. While the
copper market remains oversupplied, a deficit may develop after
2017.
Based on consensus price forecasts, DBRS believes that Teck is
likely to achieve its target of finishing 2016 with its USD 3
billion credit facility undrawn and over $500 million in cash. The
Company would then be within 12 months of project completion at
Fort Hills, should be able to finance the remaining Fort Hills
capital expenditure ($1 billion from May 2016) internally and
achieve noticeable diversified production benefits (including a
natural oil price hedge) starting in 2019. Should the recoveries in
zinc and steelmaking coal markets gain traction in the coming
quarters, enabling the Company to demonstrate material improvement
in key financial metrics, DBRS may consider removing the Negative
trends. Alternatively, DBRS would consider downgrading if further
significant weakness in commodity pricing clearly changes the
currently more favourable outlook for financial performance.
TENNESSEE SEAFOOD: Proposes Nov. 9 Gen. Claims Bar Date
-------------------------------------------------------
Tennessee Seafood, LLC, asks the Bankruptcy Court to set a deadline
for any creditor or equity security holder whose claim or interest
is not scheduled or scheduled as disputed, contingent, or
unliquidated, to file a proof of claim.
The Debtor asks the Court to set the bar date for Nov. 9, 2016, for
all creditors others than a governmental unit to file a proof of
claim in this proceeding. This date represents at least 90 days
from the first scheduled setting of the Debtor's Sec. 341 meeting
of creditors.
The Debtor also asks the Court to set the bar date for Feb. 7,
2017, for governmental units be set to file a proof of claim in
this proceeding. This date represents at least 180 days from the
date of the order for relief.
The Debtor says any creditor that fails to timely file a claim will
not be treated as
a creditor with respect to such claim for the purposes of voting
and distribution.
About Tennessee Seafood
Clarksville, Tennessee-based Tennessee Seafood, LLC, a franchisee
of Long John Silvers, filed a Chapter 11 petition (Bankr. M.D.
Tenn. Case No. 16-04928) on July 12, 2016. The Hon. Marian F
Harrison is the case judge. The Debtor tapped Steven L.
Lefkovitz, Esq., at the Law Offices Lefkovitz & Lefkovitz, as
counsel. The Debtor disclosed $114,041 in assets and $2.38
million in liabilities. The petition was signed by Farid
Rostampour, chief manager.
TERRA TECH: Incurs $4.14-Mil. Net Loss in Quarter Ended March 31
----------------------------------------------------------------
Terra Tech Corp. filed with the Securities and Exchange Commission
its quarterly report on Form 10-Q/A disclosing a net loss of $4.14
million on $1.55 million of revenues for the three months period
ended March 31, 2016, compared to a net loss of $2.15 million on
$763,353 of revenues for the same period in the prior year.
At March 31, 2016, the company had total assets of $12.15 million,
total liabilities of $4.58 million, and total stockholders' equity
of $7.58 million.
The Company has an accumulated deficit of approximately $50.1
million at March 31, 2016. The Company has not been able to
generate sufficient cash from operating activities to fund its
ongoing operations. There is no guarantee that the Company will be
able to generate enough revenue and/or raise capital to support its
operations. These factors raise substantial doubt about the
Company's ability to continue as a going concern.
A full-text copy of the company's 10-Q/A report is available for
free at:
https://is.gd/fYLvNX
Terra Tech Corp.'s business consists of hydroponic produce and
cannabis products. The Newport Beach, California-based company's
hydroponic produce is locally grown while its cannabis products are
currently produced in its supercritical Co2 lab in California and
are sold in select dispensaries throughout the state. The company
plans to operate medical marijuana cultivation, production and
dispensary facilities in Nevada.
TRANS ENERGY: Maloney + Novotny Raises Going Concern Doubt on Loss
------------------------------------------------------------------
Trans Energy, Inc., filed with the Securities and Exchange
Commission its annual report on Form 10-K disclosing a net loss of
$19.63 million on $12.44 million of total operating revenues for
the fiscal year ended Dec. 31, 2015, compared to a net loss of
$12.54 million on $27.22 million of total operating revenues for
the fiscal year ended in 2014.
As of Dec. 31, 2015, the Company had $96.86 million in total
assets, $133.86 million in total liabilities and a total
stockholders' deficit of $37 million.
Maloney + Novotny LLC notes that the Company has generated
significant losses from operations and has a working capital
deficit of $116,998,273 at December 31, 2015, which together raises
substantial doubt about the Company’s ability to continue as a
going concern.
Trans Energy, Inc.'s revenues decreased approximately 54% during
the fiscal year ended December 31, 2015, primarily due to a
decrease in commodity prices. They may not achieve, or subsequently
maintain, profitability if their revenues do not increase in the
future. The Company has experienced operating losses, negative cash
flow from operations and net losses in most quarterly and annual
periods for the past several years.
As of December 31, 2015, Company's net operating loss carry forward
was approximately $94.0 million and its accumulated deficit was
approximately $83.0 million. They expect to continue to incur
significant costs in connection with exploration and development of
new and existing properties. Accordingly, they will need to
generate significant revenues to achieve, attain, and eventually
sustain profitability. If revenues do not increase, they may be
unable to attain or sustain profitability on a quarterly or annual
basis. Any of these factors could cause the price of their stock to
decline.
A full-text copy of the report is available for free at:
https://is.gd/T5fHS8
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.
TRASK DEVELOPERS: Disclosure Statement Hearing on Sept. 15
----------------------------------------------------------
The U.S. Bankruptcy Court for the Central District of California is
set to hold a hearing on September 15, at 11:00 a.m., to consider
the outline of the joint Chapter 11 plan proposed by
Trask Developers, LLC and its chief executive officer.
The hearing will take place at Courtroom 5C, U.S. Bankruptcy Court,
411 West Fourth Street, Santa Ana, California.
Under U.S. bankruptcy law, a company must get approval of its
disclosure statement detailing its bankruptcy plan to begin
soliciting votes from creditors. The document must contain
adequate information to enable creditors to make an informed
decision about the bankruptcy plan.
The Debtors are represented by:
David S. Kupetz, Esq.
Jessica L. Vogel, Esq.
Sulmeyer Kupetz
333 South Hope Street, 35th Floor
Los Angeles, California 90071-1406
Phone: 213.626.2311
Email: dkupetz@sulmeyerlaw.com
Email: jvogel@sulmeyerlaw.com
About Trask Developers
Trask Developers LLC and Paul Chieu Nguyen, member and chief
executive officer of the company, sought protection under Chapter
11 of the Bankruptcy Code (Bankr. C.D. Cal. Lead Case No. 16-11621)
on April 15, 2016.
The case is assigned to Judge Scott C. Clarkson.
At the time of the filing, Trask Developers estimated its assets at
$1 million to $10 million and debts at $500,000 to $1 million.
UNITED REHABILITATION: Court Approves Claims Bar Date
-----------------------------------------------------
The United Rehabilitation Services, Inc., filed a motion asking
the United States Bankruptcy Court for the Middle District of
Pennsylvania to set a 60-day deadline for filing proofs of claim.
By notice sent Dec. 22, 2015 creditors were informed that no
deadline had been set for filing proofs of claim.
Following the filing of the Motion, Judge John J. Thomas
immediately entered an order setting a deadline for the filing of
claim of 60 days from the date of the notice of the bar date.
Any creditors wishing to rely on deemed filed claims listed in the
Debtor's schedules need not file a proof of claim.
The United Rehabilitation Services filed a petition for relief
under Chapter 11 of the Bankruptcy Code (Bankr. M.D. Pa. Case No.
15-05147) on Nov. 30, 2015. United continues as a debtor in
possession at this time. The Hon. John J Thomas presides over the
case.
Attorney for the Debtor:
DORAN & DORAN, P.C.
Lisa M. Doran, Esq.
69 Public Square, Suite 700
Wilkes-Barre, PA 18701
USG CORP: S&P Raises CCR to 'BB', Outlook Positive
--------------------------------------------------
S&P Global Ratings said it raised its corporate credit rating on
Chicago-based USG Corp. to 'BB' from 'BB-'. The outlook is
positive.
At the same time, S&P lowered the issue-level rating on the
company's guaranteed senior notes to 'BB' from 'BB+' (in line with
the 'BB' corporate credit rating). In addition, S&P revised the
recovery rating on the notes to '3' from '1'. While S&P's recovery
analysis indicates a higher recovery than indicated by its '3'
recovery rating (50%-70%; upper half of the range), under S&P's
recovery methodology we generally cap the recovery rating for
companies with corporate credit ratings in the 'BB' category at '3'
to account for the risk that their recovery prospects are at
greater risk of being impaired by issuance of additional priority
or pari passu debt before default.
In addition, S&P raised the issue-level rating on the company's
nonguaranteed senior notes and industrial revenue bonds one notch
to 'B+' from 'B'. The recovery rating on the nonguaranteed senior
notes is unchanged at '6', indicating S&P's expectation of
negligible (0% to 10%) recovery in the event of default.
"The positive outlook reflects the potential for an upgrade if USG
reduces leverage measures to within the intermediate category --
debt to EBITDA of 2x-3x and FFO to debt of 30%-45% -- over the next
12 months as construction markets continue to improve," said S&P
Global Ratings credit analyst Kimberly Garen. "We expect leverage
measures will improve further to just 3x by the end of 2016, with
the expected repayment of the company's $500 million of notes due
November 2016."
S&P could take a positive rating action within the next 12 months
if there continues to be positive movement in new home construction
and repair and remodeling spending and USG remains on track to
reduce its current debt balances in the second half of fiscal 2016,
resulting in improving financial metrics, including sustainable
debt-to-EBITDA leverage of below 3x , in line with an intermediate
financial risk profile.
S&P does not believe a downgrade is likely within the next 12
months given its forecast for further improvement in U.S.
construction markets. Still, a downgrade could occur in a
recessionary environment, causing U.S. housing starts to contract.
However, S&P's economists place only a 10% to 15% probability on a
new recession.
VIREOL BIO ENERGY: Court Okays Disclosure Statement
---------------------------------------------------
The Hon. Keith L. Phillips of the U.S. Bankruptcy Court for the
Eastern District of Virginia has entered an order approving Vireol
Bio Energy, LLC's disclosure statement accompanying its plan of
reorganization.
The Court previously granted conditional approval of the Disclosure
Statement by order dated March 24, 2016, and set a final hearing on
the adequacy of the Disclosure Statement for May 2, 2016, which was
subsequently continued to June 1, 2016.
About Vireol Bio Energy
Vireol Bio Energy is the former operator of an on-again, off-again
55-acre ethanol production facility at 701 S. Sixth Avenue in
Hopewell, Virginia.
Creditors, which include a division of Dominion Resources, filed an
involuntary bankruptcy petition for the Company in November 2015,
asking the Bankruptcy Court to determine whether the Company can be
forced into Chapter 7 to liquidate any remaining assets. Creditors
claimed that the Company and its affiliates left a trail of unpaid
bills in the wake of selling the Hopewell plant to a Nebraska firm
for $18 million.
Bankruptcy Judge Keith Phillips granted on Dec. 14, 2015, Vireol
Bio Energy's request to have the Chapter 7 liquidation case filed
by the creditors against the Company converted to one under Chapter
11 reorganization.
WALTER INVESTMENT: S&P Lowers ICR to 'B', Outlook Negative
----------------------------------------------------------
S&P Global Ratings said it lowered its long-term issuer credit
rating on Walter Investment Management Corp. to 'B' from 'B+'. The
outlook is negative. At the same time, S&P also lowered the rating
on the company's term loan to 'B+' from 'BB-' and the rating on its
senior unsecured notes to 'CCC+' from 'B-'. The recovery rating on
the term loan remains at '2', which assumes substantial recovery
(70%-90%; lower half of the range). The recovery rating on the
senior unsecured notes remains at '6', which assumes negligible
recovery (0%-10%).
"Our rating actions on Walter reflect our expectation that the
company will incur meaningful impairments to its MSR portfolio when
the company reports for the second quarter," said S&P Global
Ratings credit analyst Stephen Lynch. The value of MSRs is
correlated to the 30-year mortgage rate because prepayment on
mortgages are expected to increase when the 30-year mortgage rate
declines. During the first quarter of 2016, Walter recognized an
impairment charge of $258.5 million on its MSRs when the 30-year
mortgage rate declined to 3.7% from 4.0% at the end of 2015. S&P
expects further write-downs because the 30-year mortgage rate slid
to 3.5% at the end of the second quarter.
The impairments to MSRs have hurt the company's tangible equity.
Walter ended the first quarter with just $179 million of tangible
equity, down from $374 million a year earlier. S&P expects debt to
tangible equity leverage will continue to rise when the company
reports second-quarter results.
The declining asset values also complicate the company's goal of
lowering leverage to 3.4x-3.6x. Walter's plan is to sell MSR
assets to Walter Capital Opportunity Corp. (WCO) and use the
proceeds to repurchase debt and lower leverage. However, the
company has not reported any meaningful sales to the WCO to date,
and continued markdowns on MSRs will reduce proceeds received in
any sale transaction.
"The negative outlook on Walter reflects our view that the company
may have trouble lowering its debt to EBITDA to below 5.0x and that
debt to tangible equity will remain substantially elevated," said
Mr. Lynch.
S&P could lower the rating over the next six to 12 months if it
believes debt to EBITDA will remain above 5.0x.
S&P could revise the outlook to stable if the company is able to
lower debt to EBITDA sustainably below 4.0x, or if the company were
able to maintain debt to EBITDA below 4.5x with debt to tangible
equity below 6.0x. Over time, S&P could upgrade the company if
both debt to EBITDA and debt to tangible equity were below 4.5x.
WASHINGTON FIRST: Unsecureds to Be Paid from Liquidating Trust
--------------------------------------------------------------
Washington First Financial Group, Inc., filed with the U.S.
Bankruptcy Court for the Western District of Washington a
Disclosure Statement in support of its Plan of Liquidation, which
proposes that Claims of General Unsecured Creditors in Class 2,
including the Federal Deposit Insurance Corporation and the
amounts, if any, by which any allowed claims of the creditors
included in Class 1 exceed the value of their respective
collateral, be beneficiaries of the Liquidating Trust to be
established, and entitled to participate in the distributions from
the Liquidating Trust.
The Debtor's Plan proposes to liquidate all assets of the Debtor,
including assets of WF Capital and the LLC Subsidiaries that were
merged with the Debtor effective May 6, 2016, and distribute the
net sale proceeds to holders of allowed claims as beneficiaries
under a Liquidating Trust. Holders of allowed secured claims will
retain their interests in collateral up to the value of the
collateral as determined by the Court, and receive payment of their
allowed secured claims from the net proceeds of the sale of the
collateral, until the claims are satisfied or resolved pursuant to
the U.S. Bankruptcy Code. A Liquidating Trust will be created for
the benefit of all secured and unsecured creditors that is funded
by the assets of the Debtor, including assets gained through the
collapse of the Debtor and WF Capital's corporate structure in the
Merger described in the FDIC Settlement Agreement, less amounts
necessary to fund administration of the Chapter 11 Estate,
including but not limited to payment of administrative expense and
priority claims as allowed by the Court.
Allowed administrative expense and priority claims, including
attorney fees and reimbursement of expenses, will be paid from the
Liquidating Trust prior to payments to holders of allowed claims.
The value of the property to be distributed under the Plan to
creditors will not be less than the net proceeds from the
liquidation of the Debtor's assets.
A Liquidating Trust will be created for the benefit of all secured
and unsecured creditors, including the FDIC, that is funded by the
assets of the Debtor as of the Petition Date, including assets
gained through the collapse of the Debtor's and WF Capital's
corporate structure into the Merger described in the FDIC
settlement agreement, less amounts necessary to fund administration
of the Chapter 11 estate, including but not limited to payment of
allowed priority, administrative expense claims including attorney
fees and reimbursement of expenses approved by the Court, U.S.
Trustee fees, and secured claims.
The Liquidating Trustee will be appointed subject to approval by
the Court. The Liquidating Trustee will be authorized to perform
acts including, but not limited to, making interim and final
distributions on allowed unsecured claims and establishing reserves
for use by the Liquidating Trust, as set forth in the Liquidating
Trust Agreement. The expenses of the Liquidating Trust, including
compensation of the Liquidating Trustee, will be paid out of the
Liquidating Trust, subject to Bankruptcy Court approval. In the
event of a conflict between the terms of the Liquidating Trust
Agreement and the Plan, the Plan will control.
The Disclosure Statement in support of Debtor's Plan of Liquidation
is available for free at:
http://bankrupt.com/misc/wawb16-12848-14.pdf
On behalf of the Debtor, the Disclosure Statement was filed by:
Jeffrey L. Smoot, Esq.
Oles Morrison Rinker & Baker LLP
701 Pike Street, Suite 1700
Seattle, WA 98101
Tel: (206) 623-3427
Fax: (206) 682-6234
E-mail: Smoot@OLES.com
Washington First Financial Group, Inc., a bank holding company,
sought protection under Chapter 11 of the Bankruptcy Code (Bankr.
W.D. Wash. Case No. 16-12848) on May 26, 2016. The petition was
signed by Elizabeth Huang, president.
At the time of the filing, the Debtor estimated its assets and
liabilities at $10 million to $50 million.
WYNN RESORTS: Fitch Affirms & Withdraws 'BB' Issuer Default Rating
------------------------------------------------------------------
Fitch Ratings has affirmed and withdrawn the ratings of Wynn
Resorts, Ltd and its subsidiaries. Fitch has withdrawn the ratings
for commercial reasons.
RATING SENSITIVITIES
Rating Sensitivities are not applicable as the ratings have been
withdrawn.
FULL LIST OF RATING ACTIONS
Fitch has affirmed and withdrawn the following ratings:
Wynn Resorts, Limited
-- Issuer Default Rating (IDR) at 'BB'; Outlook Stable.
Wynn Las Vegas, LLC
-- IDR at 'BB'; Outlook Stable;
-- Senior secured first mortgage notes at 'BB+/RR2';
-- Senior unsecured notes at 'BB/RR4'.
Wynn America, LLC
-- IDR at 'BB'; Outlook Stable;
-- Senior secured credit facility at 'BB+/RR2'.
Wynn Resorts (Macau), SA
-- IDR at 'BB'; Outlook Stable;
-- Senior secured credit facility at 'BBB-/RR1'.
Wynn Macau, Ltd
-- IDR affirmed at 'BB'; Outlook Stable;
-- Senior notes at 'BB/RR4'.
YASHAMAR INC: Selling Comfort Inns Hotel to Gayatri
---------------------------------------------------
Yashamar, Inc., on July 15, 2016, filed with the U.S. Bankruptcy
Court for the Northern District of Indiana to sell its 70 room
Comfort Inns hotel located in Porter, Indiana, pursuant to the
terms of a Purchase Agreement for Commercial Real Estate dated July
6, 2016, between the Debtor as Seller and Jai Gayatri, Inc., as
Buyer.
The Hotel was built in 2009 for approximately $5.50 million. IPD
Hospitality was hired by the Debtor to manage the daily operation
of the hotel after construction began but before the hotel was
open. Immediately upon being hired IPD advised the Debtor that the
location would not support an investment the size of this one. IPD
was right. Revenue from operations, although steadily growing, has
never been sufficient to cash flow operating costs and debt
service. As a result, the principals of the Debtor have
contributed just under $2 million to fund operating cash shortfalls
since the Hotel opened.
Centier Bank is the primary secured creditor having a first
priority mortgage interest in the Hotel. SBA has a subordinated
second priority mortgage interest in the Hotel. The two lenders
are owed $2.4 million and $1.3 million, respectively. The Debtor
believes the best result for creditors in this situation is to
engage in an orderly market sale of the asset. Upon closing such
sale, proceeds will be paid in accordance with the priority of
liens, and it is not expected that creditors other than Centier
will receive proceeds.
As of the Petition Date, there were the following secured claims
and property taxes due and owing and secured by liens on the Real
Estate as follows:
Priority Holder Amount of Debt
-------- ------ --------------
1st Porter County Treasurer $20,794
2nd Centier $2,400,000
3rd SBA $1,305,000
----------
Total $3,725,794
The Debtor does not have the time or access to capital to make the
Hotel a profitable enterprise that will generate money for the
bankruptcy estate. As a result, the Debtor believes that an
orderly liquidation of the Hotel will benefit both the Debtor and
the bankruptcy estate. The Debtor has entered into the Sale
Agreement, which provides for a total purchase price of $2,350,000,
after diligent effort to obtain the highest return to the estate
from its sale.
The Debtor's attorney, KC Cohen, Esq., relates that there is no
equity in the Hotel so it is necessary to surcharge creditors'
collateral for the costs of the sale including Debtor's counsel's
fees. The Debtor proposes to surcharge each secured creditor a pro
rata portion of those expenses based on the net proceeds to be
received from the sale. It appears that only Centier Bank will
receive any proceeds from the sale so it will bear the costs of
such surcharge.
Yashamar, Inc., filed a Chapter 11 petition (Bankr. N.D. Ind. Case
No. 16-20264 on Feb. 11, 2016. The petition was signed by Ramesh
Savani, president. Hon. Philip J. Klingeberger is the case judge.
K.C. Cohen, Esq., at KC Cohen, Lawyer, PC, serves as counsel. The
Debtor disclosed $2.27 million in assets and $3.74 million in
liabilities.
[^] Recent Small-Dollar & Individual Chapter 11 Filings
-------------------------------------------------------
In re Charles K. Breland, Jr.
Bankr. S.D. Ala. Case No. 16-02272
Chapter 11 Petition filed July 8, 2016
Represented by: Robert M. Galloway, Esq.
GALLOWAY WETTERMARK EVEREST RUTENS
E-mail: bgalloway@gallowayllp.com
In re Raymond Douglas Zirkle and Sally G Fernandez
Bankr. D. Ariz. Case No. 16-07808
Chapter 11 Petition filed July 8, 2016
Represented by: Eric Slocum Sparks, Esq.
ERIC SLOCUM SPARKS PC
E-mail: law@ericslocumsparkspc.com
In re Daniel Major Edstrom, Sr.
Bankr. E.D. Cal. Case No. 16-24451
Chapter 11 Petition filed July 8, 2016
Filed Pro Se
In re Robert Woodrow Bryan
Bankr. N.D. Cal. Case No. 16-30757
Chapter 11 Petition filed July 8, 2016
Filed Pro Se
In re Marcus Vernon Lyons
Bankr. N.D. Cal. Case No. 16-41925
Chapter 11 Petition filed July 8, 2016
represented by: Marc Voisenat, Esq.
LAW OFFICES OF MARC VOISENAT
E-mail: voisenatecf@gmail.com
In re Scott J Terrazzano
Bankr. M.D. Fla. Case No. 16-02595
Chapter 11 Petition filed July 8, 2016
represented by: Taylor J King, Esq.
LAW OFFICES OF MICKLER & MICKLER
E-mail: tjking@planlaw.com
In re Banner Glass, Inc.
Bankr. D. Md. Case No. 16-19233
Chapter 11 Petition filed July 8, 2016
See http://bankrupt.com/misc/mdb16-19233.pdf
represented by: Steven L. Goldberg, Esq.
MCNAMEE HOSEA ET AL.
E-mail: sgoldberg@mhlawyers.com
In re Andrew M Feltz
Bankr. D.N.J. Case No. 16-23174
Chapter 11 Petition filed July 8, 2016
represented by: Adam D Wolper, Esq.
TRENK, DIPASQUALE, DELLA FERA & SODONO
E-mail: awolper@trenklawfirm.com
In re Rapid Results Systems
Bankr. E.D.N.Y. Case No. 16-73057
Chapter 11 Petition filed July 8, 2016
See http://bankrupt.com/misc/nyeb16-73057.pdf
Filed Pro Se
In re Donny Wilson Myers
Bankr. W.D. Okla. Case No. 16-12676
Chapter 11 Petition filed July 8, 2016
Filed Pro Se
In re George Drayton Jones
Bankr. D.S.C. Case No. 16-03443
Chapter 11 Petition filed July 8, 2016
represented by: Otis Allen Jeffcoat, III, Esq.
JEFFCOAT LAW, LLC
E-mail: ajeffcoat@jeffcoatlaw.com
In re Live Oak Lounge, LLC
Bankr. N.D. Tex. Case No. 16-42659
Chapter 11 Petition filed July 8, 2016
See http://bankrupt.com/misc/txnb16-42659.pdf
represented by: Warren V. Norred, Esq.
NORRED LAW, PLLC
E-mail: wnorred@norredlaw.com
In re Happyworks Day Care, Inc.
Bankr. N.D. Ohio Case No. 16-13769
Chapter 11 Petition filed July 9, 2016
See http://bankrupt.com/misc/ohnb16-13769.pdf
represented by: Richard H. Nemeth, Esq.
NEMETH & ASSOCIATES, LLC
E-mail: rnemeth@ohbklaw.com
In re STM Enterprise, Inc.
Bankr. E.D.N.Y. Case No. 16-43036
Chapter 11 Petition filed July 10, 2016
See http://bankrupt.com/misc/nysb16-43036.pdf
represented by: Julio E Portilla, Esq.
LAW OFFICE OF JULIO E. PORTILLA, P.C.
E-mail: jp@julioportillalaw.com
In re Patrick Lee Kennedy
Bankr. C.D. Cal. Case No. 16-19136
Chapter 11 Petition filed July 11, 2016
Filed Pro Se
In re David & Sandy Properties LLC
Bankr. M.D. Fla. Case No. 16-05906
Chapter 11 Petition filed July 11, 2016
See http://bankrupt.com/misc/flmb16-05906.pdf
represented by: David W Steen, Esq.
DAVID W STEEN, P.A.
E-mail: dwsteen@dsteenpa.com
In re The 13 Group, LLC
Bankr. N.D. Fla. Case No. 16-30651
Chapter 11 Petition filed July 11, 2016
See http://bankrupt.com/misc/flnb16-30651.pdf
Filed Pro Se
In re Florida Moving & Storage, Inc.
Bankr. S.D. Fla. Case No. 16-19652
Chapter 11 Petition filed July 11, 2016
See http://bankrupt.com/misc/flsb16-19652.pdf
represented by: Chad T Van Horn, Esq.
VAN HORN LAW GROUP, P.A.
E-mail: Chad@cvhlawgroup.com
In re Kings Industries, LLC
Bankr. D. Neb. Case No. 16-81049
Chapter 11 Petition filed July 11, 2016
See http://bankrupt.com/misc/neb16-81049.pdf
represented by: Howard T. Duncan, Esq.
DUNCAN LAW OFFICE
E-mail: ecf@hduncanlaw.com
In re L & F Graphics Limited Liability Company
Bankr. D.N.J. Case No. 16-23241
Chapter 11 Petition filed July 11, 2016
See http://bankrupt.com/misc/njb16-23241.pdf
represented by: Avram D White, Esq.
LAW OFFICES OF AVRAM D WHITE, ESQ
E-mail: clistbk3@gmail.com
In re Vida Cafe Inc.
Bankr. S.D.N.Y. Case No. 16-11978
Chapter 11 Petition filed July 11, 2016
See http://bankrupt.com/misc/nysb16-11978.pdf
represented by: Douglas J. Pick, Esq.
PICK & ZABICKI LLP
E-mail: dpick@picklaw.net
In re Bonnie Copple
Bankr. W.D. Pa. Case No. 16-22564
Chapter 11 Petition filed July 11, 2016
represented by: Robert O Lampl, Esq.
E-mail: rol@lampllaw.com
In re Myers Machine Works, Inc.
Bankr. W.D. Tex. Case No. 16-51577
Chapter 11 Petition filed July 11, 2016
See http://bankrupt.com/misc/txwb16-51577.pdf
represented by: Dean William Greer, Esq.
E-mail: dwgreer@sbcglobal.net
In re Julie Marie Palmer
Bankr. E.D. Wis. Case No. 16-26974
Chapter 11 Petition filed July 11, 2016
represented by: Jonathan V. Goodman, Esq.
LAW OFFICES OF JONATHAN V. GOODMAN
E-mail: jgoodman@ameritech.net
In re Paul Herbert Feller
Bankr. C.D. Cal. Case No. 16-11313
Chapter 11 Petition filed July 12, 2016
represented by: Reed H Olmstead, Esq.
HURLBETT & OLMSTEAD
E-mail: reed@olmstead.law
In re Artemio Campos Zavala and Margarita Flores De Zavala
Bankr. C.D. Cal. Case No. 16-19214
Chapter 11 Petition filed July 12, 2016
represented by: Onyinye N Anyama, Esq.
ANYAMA LAW FIRM
E-mail: onyi@anyamalaw.com
In re TDQ, LLC
Bankr. C.D. Cal. Case No. 16-19218
Chapter 11 Petition filed July 12, 2016
See http://bankrupt.com/misc/cacb16-19218.pdf
represented by: Paul M Brent, Esq.
STEINBERG NUTTER & BRENT
E-mail: snb300@aol.com
In re Ronald Carvalho Leao
Bankr. C.D. Cal. Case No. 16-19232
Chapter 11 Petition filed July 12, 2016
represented by: Paul M Brent, Esq.
STEINBERG NUTTER & BRENT
E-mail: snb300@aol.com
In re David Bradford Colclough, Jr.
Bankr. N.D. Cal. Case No. 16-30769
Chapter 11 Petition filed July 12, 2016
Filed Pro Se
In re Zion Group, LLC
Bankr. D.D.C. Case No. 16-00343
Chapter 11 Petition filed July 12, 2016
See http://bankrupt.com/misc/dcb16-00343.pdf
represented by: Brett Weiss, Esq.
CHUNG & PRESS, PLLC
E-mail: brett@BankruptcyLawMaryland.com
In re Ronald A Collins
Bankr. S.D. Ga. Case No. 16-60301
Chapter 11 Petition filed July 12, 2016
represented by: James L Drake, Jr., Esq.
E-mail: jdrake7@bellsouth.net
In re Turkeyfoot Lake Road Land Holdings LLC
Bankr. N.D. Ohio Case No. 16-51653
Chapter 11 Petition filed July 12, 2016
See http://bankrupt.com/misc/ohnb16-51653.pdf
represented by: David A. Mucklow, Esq.
E-mail: davidamucklow@yahoo.com
In re EIA Tropical, LLC
Bankr. D.P.R. Case No. 16-05552
Chapter 11 Petition filed July 12, 2016
See http://bankrupt.com/misc/prb16-05552.pdf
represented by: Hector Eduardo Pedrosa-Luna, Esq.
THE LAW OFFICES OF HECTOR EDUARDO PEDROSA-LUNA
E-mail: hectorpedrosa@gmail.com
In re Studio X, LLC
Bankr. D.R.I. Case No. 16-11202
Chapter 11 Petition filed July 12, 2016
See http://bankrupt.com/misc/rib16-11202.pdf
represented by: Ryanna T. Capalbo, Esq.
BILODEAU CARDEN, LLC
E-mail: rcapalbo@bilodeaucarden.com
In re Robert L. Pendergraft and Jane M. Pendergraft
Bankr. S.D. Tex. Case No. 16-33506
Chapter 11 Petition filed July 12, 2016
represented by: William P Haddock, Esq.
PENDERGRAFT & SIMON
E-mail: will@haddock.pro
In re David John Vidad and Elizabeth Anne Vidad
Bankr. D. Ariz. Case No. 16-08002
Chapter 11 Petition filed July 13, 2016
represented by: Harold 2 Campbell, Esq.
CAMPBELL & COOMBS, P.C.
E-mail: heciii@haroldcampbell.com
In re Jalal Neishabouri
Bankr. C.D. Cal. Case No. 16-12943
Chapter 11 Petition filed July 13, 2016
represented by: Marc C Forsythe, Esq.
E-mail: kmurphy@goeforlaw.com
In re TJBC, LLC
Bankr. C.D. Cal. Case No. 16-19299
Chapter 11 Petition filed July 13, 2016
See http://bankrupt.com/misc/cacb16-19299.pdf
represented by: John-Patrick M Fritz, Esq.
LEVENE NEALE BENDER YOO ET AL
E-mail: jpf@lnbyb.com
In re Sterling Debartolo Inc
Bankr. N.D. Cal. Case No. 16-30771
Chapter 11 Petition filed July 13, 2016
See http://bankrupt.com/misc/canb16-30771.pdf
Filed Pro Se
In re The Mobile Fox, Inc.
Bankr. M.D. Fla. Case No. 16-02651
Chapter 11 Petition filed July 13, 2016
See http://bankrupt.com/misc/flmb16-02651.pdf
represented by: William B McDaniel, Esq.
LANSING ROY, PA
E-mail: court@lansingroy.com
In re Charles Cunningham
Bankr. M.D. Fla. Case No. 16-05958
Chapter 11 Petition filed July 13, 2016
Filed Pro Se
In re Tropical Eats LLC
Bankr. N.D. Ga. Case No. 16-62208
Chapter 11 Petition filed July 13, 2016
Filed Pro Se
In re Thomas E Moorhead
Bankr. E.D. Mich. Case No. 16-31651
Chapter 11 Petition filed July 13, 2016
represented by: James L. Gutting, Esq.
E-mail: attyjamz@mac.com
In re Robin B Wilkerson and Dennis N Wilkerson
Bankr. N.D. Miss. Case No. 16-12350
Chapter 11 Petition filed July 13, 2016
represented by: Craig M. Geno, Esq.
Law Offices of Craig M. Geno, PLLC
E-mail: cmgeno@cmgenolaw.com
In re Rex A Nichols and Claudene B Nichols
Bankr. S.D. Ala. Case No. 16-02350
Chapter 11 Petition filed July 14, 2016
represented by: Marion E. Wynne, Jr., Esq.
E-mail: twynne@wbbwlaw.com
In re Mikhail Gelman
Bankr. N.D. Cal. Case No. 16-30774
Chapter 11 Petition filed July 14, 2016
represented by: Joan M. Chipser, Esq.
LAW OFFICES OF JOAN M. CHIPSER
E-mail: joanchipser@sbcglobal.net
In re 244 Trapelo Road LLC
Bankr. D. Mass. Case No. 16-12688
Chapter 11 Petition filed July 14, 2016
Filed Pro Se
In re East Coast Beverages, Inc.
Bankr. D. Md. Case No. 16-19436
Chapter 11 Petition filed July 14, 2016
See http://bankrupt.com/misc/mdb16-19436.pdf
represented by: Weon G. Kim, Esq.
WEON G KIM LAW OFFICE
E-mail: jkkchadol99@gmail.com
In re Alliance Food Services Inc.
Bankr. M.D.N.C. Case No. 16-50713
Chapter 11 Petition filed July 14, 2016
See http://bankrupt.com/misc/ncmb16-50713.pdf
represented by: Brian Hayes, Esq.
FERGUSON, HAYES, HAWKINS & DEMAY, PLLC
E-mail: bphafd@fspa.net
In re Maria Alanis
Bankr. D. Nev. Case No. 16-13885
Chapter 11 Petition filed July 14, 2016
represented by: Michael J. Harker, Esq.
E-mail: notices@harkerlawfirm.com
In re William E. Connolly
Bankr. W.D. Pa. Case No. 16-22607
Chapter 11 Petition filed July 14, 2016
represented by: Robert O Lampl, Esq.
E-mail: rol@lampllaw.com
In re Sharon Travel And Tours Corp.
Bankr. D.P.R. Case No. 16-05639
Chapter 11 Petition filed July 14, 2016
See http://bankrupt.com/misc/prb16-05639.pdf
represented by: Jesus Enrique Batista Sanchez, Esq.
THE BATISTA LAW GROUP, PSC
E-mail: jesus.batista@batistalawgroup.com
In re Barbara B Kliefoth and Kevin William Kliefoth
Bankr. W.D. Tex. Case No. 16-10817
Chapter 11 Petition filed July 14, 2016
represented by: Frederick E. Walker, Esq.
E-mail: fredwalkerlaw@yahoo.com
*********
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 ***