/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/160725.mbx T R O U B L E D C O M P A N Y R E P O R T E R Monday, July 25, 2016, Vol. 20, No. 207 Headlines 21ST CENTURY: Scott Lawrence Quits as Director 9010 H DEVELOPMENT: Hires Vogel Bach as Counsel AABS 1200: Involuntary Chapter 11 Case Summary ACE'S INDOOR: Court Allows 30-Day Cash Collateral Use ADAMIS PHARMACEUTICALS: Watsons Terminates License Agreement ADVANCED MICRO: Reports 2016 Second Quarter Results AEROGROW INTERNATIONAL: Signs $6 Million Loan Agreement with SMG AEROPOSTALE INC: To Challenge Sycamore's Status as Creditor AF LEWIS: Taps Anderson & Associates as Accountant AL SILWADY: Wants to Use Guaranty Bank's Cash Collateral AMERICAN AIRLINES: S&P Affirms 'BB-' CCR, Outlook Stable AMPAL-AMERICAN: NY Court Denies Bid to Disqualify Ch. 7 Trustee ANOTHER DOOR: Seeks to Hire Anthony D. Nini as Accountant ARGITAKOS LLC: Taps Gazis & Associates as Accountant ASTROTURF LLC: Committee Taps GlassRatner as Financial Advisor BANK OF ANGUILLA: Taps Weinberg Zareh as Conflicts Counsel BERNARD L. MADOFF: Judge Shrinks Trustee $905M Suit vs. Fla. Firm BILL BARRETT: Provides Q2 2016 Commodity Price & Derivatives Update BILLINGSLEY PRECISION: Wants Authorization to Use Cash Collateral BILLYS ROADHOUSE: U.S. Trustee Unable to Appoint Committee BING ENERGY: Case Summary & 14 Unsecured Creditors BING ENERGY: Hires Berger Singerman as Counsel BMR HOLDINGS: Plan Confirmation Hearing on Aug. 15 BRIGHTER CHOICE: Fitch Affirms 'B' Rating on $16.1MM Revenue Bonds BRYAN FORESEE: Exit Plan to Pay $7,200 to Unsecured Creditors BUDD COMPANY: Court Further Reduces UAW Counsel's Fee Application BULOVA TECHNOLOGIES: Amends Second Quarter Form 10-Q C&J ENERGY: Asks Court to Jointly Administer Cases C&J ENERGY: Extension of Schedules Filing Deadline Sought C&J ENERGY: Proposes C&J Canada as Foreign Representative CAESARS ENTERTAINMENT: China's Giant Said to Lead Bidders for Unit CANEJAS SE: Creditors to Get Full Payment Under Plan CCH JOHN EAGAN: Court to Take Up Plan Outline on August 24 CERTIFIED ENERGY LABS: U.S. Trustee Unable to Appoint Committee CHESTNUT STREET: Hires Berkshire Hathaway as Real Estate Broker CHINA FISHERY: Seeks to Hire Meyer Suozzi as Legal Counsel CHINA FISHERY: Taps Goldin Associates as Financial Advisor CHINA FISHERY: Taps RSR Consulting as Restructuring Consultant CHRISTINE GOOD: Exit Plan to Pay $10K to Unsecured Creditors CINEVIA CORPORATION: Wants to Use $2,350 for Monthly Expenses CITADEL WATFORD: Committee Taps Shaw Fishman as Legal Counsel CJ HOLDING: Moody's Cuts PDR to D-PD on Chap. 11 Filing CLEVELAND BIOLABS: Gets Non-Compliance Notice from NASDAQ COMMUNITY VISION: Cash Collateral Use on Interim Basis OK CONDO 64 LLC: Can Use Cash Collateral Through September 22 CONGREGATION OF UNITY: Can Use Cash Collateral Until Oct. 4 CONNTECH PRODUCTS: Can Use TD Bank Cash Collateral Until July 30 CORELOGIC INC: Moody's Cuts Senior Secured Ratings to Ba2 CREATIVE FOODS: Has Until Sept. 6 to Use Cash Collateral CRYSTAL SPOON: Wants Plan Filing Deadline Moved to Dec. 21 CULTURE PROJECT: Wants to Use HSBC Cash Collateral CUSTOM STONE: Taps Roussos Glanzer as Legal Counsel D&H MACHINE SERVICE: Secured Credit from Brian Hillard Sought DANIEL S. BEECROFT: Court to Take Up Plan on August 25 DAWN INC: Proposes Private Sale of Mamaroneck Property DEFENSE HOLDINGS: CEO to Contribute $10K to Fund Bankruptcy Plan DETROIT, MI: S&P Assigns 'B' Rating on Unlimited Tax GO Debt DISH NETWORK: Moody's Says Subscriber Losses Cuts Fin'l Flexibility DIVINE RIPE: Frescos' Objection to Disclosure Statement Sustained DOLPHIN DIGITAL: To Hold "Say-on-Pay" Votes Triennially DRAGONWAVE INC: Reports $4.04-Mil. Net Loss in Qtr. Ended May 31 ELITE PHARMACEUTICALS: Conference Call Held to Discuss FDA CRL ELK CREEK: Can Use up to $10K in Cash for Daily Expenses EMPIRE RESORTS: James Simon Resigns as Director ENOR CORP: Committee Seeks to Hire Saul Ewing as Legal Counsel ENTERPRISE CLOUDWORKS: Wants Immediate Use of Cash Collateral ESML HOLDINGS: U.S. Trustee Forms 3-Member Committee ESS AUTOMOTIVE: Wants Authorization to Use IRS Cash Collateral ESSAR STEEL MINNESOTA: Hires Fox Rothschild as Co-counsel EUROTECH CABINETS: Can Use IRS Cash Collateral Up To December 31 EUROTECH CABINETS: Can Use State Cash Collateral Through Dec. 31 FAIRFIELD SHOPPING: Court Narrows Claims in ASI Suit FAR WESTERN GRAPHICS: Voluntary Chapter 11 Case Summary FLORIDA MOVING: Seeks to Hire IZ Forensics as Accountant FNB CORP: Moody's Continues to Review Ba2 Rating for Upgrade FOODSERVICEWAREHOUSE.COM: Has Until Sept. 16 to Use Cash FORBES ENERGY: Moody's Cuts CFR to Ca, Outlook Neg. FRYMIRE SERVICES: Cash Collateral Use Up to August 11 OK FRYMIRE SERVICES: Taps Curtis Castillo as Legal Counsel GARY DEAN ROGERS: Bentwood Reserve Property Sale Approved GCC-COURTYARD: Authorized to Use Cash Collateral Through August GCC-LANDINGS: Authorized to Use Cash Collateral Through August GCC-SHARON RIDGE: Court OKs Cash Collateral Use Through August GINGER OIL: Court Approves DIP Financing on a Final Basis GOODRICH PETROLEUM: Committee Taps Opportune as Financial Advisor GROVE PLAZA PARTNERS: Wants to Use Cash to Pay for Leasing Fees GRUDEN ACQUISITION: Moody's Cuts Corporate Family Rating to B3 HAJ INC: Wants to Use Bank of the West's Cash Collateral HAPPYWORKS DAY CARE: Hires Nemeth & Associates as Counsel HASTINGS ENTERTAINMENT: To Begin Liquidation of Stores HECK ENTERPRISES: Can't Use British Petroleum Claim Proceeds HEMISPHERE MEDIA: S&P Affirms 'B' CCR, Outlook Remains Stable HEYL & PATTERSON: Committee Taps ACS as Financial Advisor HILLWINDS FAMILY: Court Allows Continued Use of Cash Collateral HIPCRICKET INC: Court Narrows Claims in Suit vs mGage, Stansbury HUGHES SATELLITE: S&P Lowers Rating on Sr. Sec. Notes to 'BB+' IMPLANT SCIENCES: Platinum Partners, et al., Hold 4.9% Stake INFOGROUP INC: S&P Raises Rating on Sr. Sec. Debt to 'B' INFOMOTION SPORTS: Cash Collateral Use Approved throgh Aug. 31 INMOBILIARIA BAFCO: Plan Proposes to Pay Creditors in Full J & N ACQUISITIONS: Court Allows 60-Day Use of Cash Collateral JOHN Q. HAMMONS: Court Allows Cash Collateral Use LEAP FORWARD GAMING: Cash Collateral Use on Interim Basis OK LEAP FORWARD: Selling Personal Property for $8.5M to IGT LEHMAN BROTHERS: Syncora Guarantee Settles Proof of Claim LENNAR CORP: Moody's Hikes Corporate Family Rating to Ba1 LEO MOTORS: Amends 42.5M Shares Resale Prospectus with SEC LISA A. KERICH: Plan Confirmation Hearing on August 30 LUCAS ENERGY: GBH CPAs Raises Going Concern Doubt Due to Losses MAGNESIUM CORP: Ch.7 Trustee to Auction Renco Interests on Aug. 11 MARK NELSON: Asks Court to Approve Outline of Chapter 11 Plan MATT HORN: Pennsylvania Property Sale Approved MAURO CEVENINI: Court to Take Up Plan Outline on Sept. 13 MCCLATCHY CO: Reports Second Quarter 2016 Results MCELRATH LEGAL: Case Summary & 20 Largest Unsecured Creditors MF GLOBAL: Corzine, Others Ink $132-Mil. Deal with Trustee MILESTONE SCIENTIFIC: Hires Friedman LLP as New Accountants MILLENIUM HEALTH: Court OKs Ameritox Bid for Prejudgment Interest MOTORS LIQUIDATION: Files GUC Trust Report as of June 30 NEAL COY: Selling Two Properties to Quadrant Corp NET ELEMENT: Has 4.9 Million Shares Resale Prospectus NET ELEMENT: To Acquire PayStar and Nexcharge NEW HORIZONS HEALTH: Owenton KY Property Sale Approved NEW YORK CRANE: Taps LaMonica Herbst as Special Counsel NOVATION COMPANIES: Hires Olshan Frome Wolosky as Co-Counsel NOVATION COMPANIES: Taps Shapiro Sher as Co-Counsel OAK RIVER ASSET: Seeks to Hire Levene Neale as Legal Counsel OCEAN POWER: KPMG Raises Going Concern Doubt on Recurring Losses ORGENESIS INC: Working Capital Deficit Raises Going Concern Doubt OVERSEAS SHIPHOLDING: Moody's Affirms B2 Corporate Family Rating PARK OVERLOOK: Asks Court to Approve $100,000 of DIP Financing PELICAN REAL ESTATE: Seeks to Hire Hammer Herzog as Accountant POMEROY PARTNERS: Allowed to Use Cash Collateral Up To Aug. 31 PRATT WELL: Servicing Equipment Auction on Aug. 25 PRIMELINE UTILITY: Acquisitions No Impact on Moody's B3 CFR PRIMELINE UTILITY: S&P Lowers Rating on Credit Facility to 'B' PRINTPACK HOLDINGS: S&P Cuts Rating on Proposed $275MM Loan to BB- R DUKE ENTERPRISES: Taps Joyce W. Lindauer as Legal Counsel RANCHO ARROYO: Cash Collateral Use Until October 19 OK REALOGY HOLDINGS: Borrows $355M Under Term Loan Credit Facility RED RIVER SOUTH: Voluntary Chapter 11 Case Summary RELIABLE RACING: Can Use Cash Collateral Until Aug. 13 RIVER NORTH 414: Wants to Use Cash, Transfer Funds to DIP Account RONALD BARTLETT: State of Georgia Wants Trustee or Dismissal ROSLYN SEFARDIC: Exclusive Plan Filing Deadline Moved to Sept. 21 RUBLE HOLDINGS: Taps Earline Sawyer as Real Estate Broker SAFWAY GROUP: Moody's Affirms B3 Corporate Family Rating SBM DEEP: DBRS Lowers Senior Secured Notes Rating to BB(high) SECURITY DEVICES: Incurs $472-K Net Loss in May 31 Quarter SEMILEDS: Incurs $3.26-Mil. Net Loss in Q2 Ended May 31 SERVE & EDUCATE: U.S. Trustee Unable to Appoint Committee SETAI 1908: Voluntary Chapter 11 Case Summary SETAI 3509: Voluntary Chapter 11 Case Summary SHEEHAN PIPE LINE: Wants to Use Zurich's Alleged Cash Collateral SIDNEY TRANSPORTATION: Taps Diller and Rice as Legal Counsel SINDESMOS HELLINIKES: Gilbane Offers $5.4M for Deerfield Property SNYDER VIRGINIA: Case Summary & 12 Unsecured Creditors SPECIAL EDUCATION: Proposes Chapter 11 Liquidating Plan SPORTS AUTHORITY: Creditors Seek to Convert Case to Ch. 7 SSNN-5532-34: Antheus Buying Chicago Property for $1.35M SSNN-BONNIE LANE: Confirmation, Disclosures Hearing on Sept. 7 STEINWAY MUSICAL: Moody's Revises Outlook to Neg & Affirms B2 CFR STEPHCRIS OF MISSOURI: Taps Danna McKitrick as Legal Counsel STERLING MIDCO: Moody's Maintains B2 Corporate Family Rating STONE PANELS: Case Summary & 20 Largest Unsecured Creditors STONEGATE MORTGAGE: S&P Affirms Then Withdraws 'B' ICR STRONGHOLD ASSET: Taps Louis J. Esbin as Legal Counsel SUTTON 58 OWNER: Hires CohnReznick as Accountants TALL CITY WELL: Allowed to Use Cash Collateral Up to Sept. 14 TAR HEEL OIL: Cash Collateral Use Up to Sept. 8 Allowed TERRAFORM PRIVATE: S&P Affirms 'B-' CCR, Off Watch Negative THUNDERBOLT MANUFACTURING: Sedgwick Property to Be Sold for $2.5K TRIDENT BRANDS: Has $648-K Net Loss in Qtr. Ended May 31 UNITED MOBILE: Wants Authorization to Use Cash Collateral VANTAGE SPECIALTY: S&P Affirms 'B-' CCR, Outlook Remains Stable VERSO PAPER: S&P Assigns 'B+' CCR & Rates $220MM Loan 'BB' VIDEO DISPLAY: Incurs $.39-Mil. Net Loss in Qtr. Ended May 31 VILLAS DEL MAR: Banco Popular Wants to Prohibit Cash Use WARNER MUSIC: Obtains Lender Consent to Amend Term Loan Agreement WARNER MUSIC: To Launch Senior Secured Notes Offering WELLS FARGO 2015-NXS2: DBRS Confirms B(sf) Rating on Class F Certs WHITE STAR: Moody's Hikes Corporate Family Rating to Caa1 WHOLELIFE PROPERTIES: Advisor Quits; UST Seeks Dismissal or Ch. 7 WILSON'S OUTDOOR: U.S. Trustee Unable to Appoint Committee WMG ACQUISITION: Moody's Rates New Senior Secured Notes Ba3 WMG ACQUISITION: S&P Assigns 'B' Rating on Proposed Sr. Sec. Notes WWLINKS INC: Taps Rob Miller as Investment Banking Consultant YEP LLC: Seeks to Hire Donald Singer as Special Counsel ZERGA PHIN-KER: Hearing to Approve Liquidating Plan Set for Aug. 30 [*] Singapore Seeks U.S. Ch. 11 Prowess in Bankruptcy Reform [^] BOND PRICING: For the Week from July 18 to 22, 2016 ********* 21ST CENTURY: Scott Lawrence Quits as Director ---------------------------------------------- Scott Lawrence, a member of the Board of Directors of 21st Century Oncology Holdings, Inc., notified the Board of his decision to resign as a director of the Company, effective on July 14, 2016, as disclosed in a Form 8-K report filed with the Securities and Exchange Commission. Mr. Lawrence had been a member of the Board since September 2014 and was a member of the Compensation Committee. Mr. Lawrence's resignation was not due to any disagreement with the Company. The Company thanks him for his time and dedicated service. About 21st Century 21st Century Oncology, Inc., formerly known as Radiation Therapy Services, Inc. ("RTS") owns and operates radiation treatment facilities in the US and Latin America. As of Sept. 30, 2015, the Company had $1.09 billion in total assets, $1.33 billion in total liabilities, $370 million in series A convertible redeemable preferred stock, $19.9 million in noncontrolling interests and a total deficit of $623 million. * * * As reported by the TCR on Feb. 27, 2015, Moody's Investors Service upgraded 21st Century Oncology, Inc.'s Corporate Family Rating and Probability of Default Rating to B3 and B3-PD, respectively. The upgrade of the Corporate Family Rating to B3 and SGL to SGL-2 reflects the receipt of a $325 million preferred equity investment from the Canada Pension Plan Investment Board and subsequent debt reduction. As reported by the TCR on May 20, 2016, S&P Global Ratings lowered its corporate credit rating on 21st Century to 'CCC' from 'B-' and placed the rating on CreditWatch with negative implications. 9010 H DEVELOPMENT: Hires Vogel Bach as Counsel ----------------------------------------------- 9010 H Development Corp, seeks authority from the U.S. Bankruptcy Court for the Eastern District of New York to employ Vogel Bach & Horn, LLP as counsel to the Debtor, nunc pro tunc to June 22, 2016. 9010 H Development requires Vogel Bach to: (a) provide the Debtor with advice and preparing all necessary documents regarding debt restructuring, bankruptcy and asset dispositions; (b) take all necessary actions to protect and preserve the Debtor's estate during the pendency of the Chapter 11 Case; (c) prepare on behalf of the Debtor, as debtor-in-possession, all necessary motions, applications, answers, orders, reports and papers in connection with the administration of this Chapter 11 Case; (d) counsel the Debtor with regard to its rights and obligations as debtor-in-possession; (e) appear in Court to protect the interests of the Debtor; and (f) perform all other legal services for the Debtor which may be necessary and proper in these proceedings and in furtherance of the Debtor's operations. Vogel Bach will be paid at these hourly rates: Attorney $225 Vogel Bach will be paid a retainer in the amount of $2,500. Vogel Bach will also be reimbursed for reasonable out-of-pocket expenses incurred. Eric H. Horn, member of Vogel Bach & Horn, LLP, assured the Court that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtors and their estates. Vogel Bach can be reached at: Eric H. Horn, Esq. VOGEL BACH & HORN, LLP 1441 Broadway, 5 th Floor New York, NY 10018 Tel. (212) 242-8350 Fax. (646) 607-2075 E-mail: ehorn@vogelbachpc.com About 9010 H Development 9010 H Development Corp., filed a Chapter 11 bankruptcy petition (Bankr. E.D.N.Y. Case No. 16-42746) on June 22, 2016. The Debtor is represented by Eric H Horn, Esq. AABS 1200: Involuntary Chapter 11 Case Summary ---------------------------------------------- Alleged Debtor: AABS 1200 LLC 4415-13th Avenue Brooklyn, NY 11219 Case Number: 16-43204 Involuntary Chapter 11 Petition Date: July 21, 2016 Court: United States Bankruptcy Court Eastern District of New York (Brooklyn) Judge: Hon. Nancy Hershey Lord Petitioners' Counsel: Joel M Shafferman, Esq. SHAFFERMAN & FELDMAN LLP 137 Fifth Avenue, 9th Floor New York, NY 10010 Tel: (212) 509-1802 Fax: (212) 509-1831 Email: joel@shafeldlaw.com Petitioners Nature of Claim Claim Amount ----------- --------------- ------------ Ikon Innovation Inc. Services $45,000 5 Quickway Road Rendered Monroe, NY 10950 Complete Condo Management, Inc. Services $35,000 1303-53rd Street Rendered Ste #282 Brooklyn, NY 11219 Eretz Build Asst. NY Inc Services $350,000 1884-53 Street Rendered Brooklyn, NY 11204 ACE'S INDOOR: Court Allows 30-Day Cash Collateral Use ----------------------------------------------------- Judge Robert A. Mark of the U.S. Bankruptcy Court for the Southern District of Florida authorized Ace's Indoor Shooting Range & Pro Gun Shop, Inc. to use cash collateral for 30 days, or until August 20, 2016. The Debtor was authorized to use cash collateral to continue its business operations and to pay its regular operating expenses in accordance with the approved Budget. The approved monthly Budget provides for total operating expenses in the amount of $68,689. The operating expenses include, among others, bookkeeping, payroll, rent and electricity. Judge Mark authorized the Debtor to make interest-only payments of $322.44 per month to National Funding, Inc. during the 30-day period, as adequate protection. Judge Mark granted National Funding continuing and post-petition replacement liens on, and security interests in, all property of the Debtor acquired or generated after the Petition Date, as to which National Funding may have had liens and security interests prior to the Petition Date, in the same extent, validity and priority that existed prior to the Petition Date. A full-text copy of the Order, dated July 21, 2016, is available at https://is.gd/M67rRd About Ace's Indoor Shooting Range & Pro Gun Shop, Inc. Ace's Indoor Shooting Range & Pro Gun Shop, Inc. filed a chapter 11 petition (Bankr. S.D. Fla. Case No. 16-15918) on April 25, 2016. The petition was signed by George de Pina, president. The Debtor is represented by Jacqueline Calderin, Esq., at Ehrenstein Charbonneau Calderin. The case is assigned to Judge Robert A. Mark. The Debtor estimated assets of $0 to $50,000 and debts of $1 million to $10 million at the time of the chapter 11 filing. ADAMIS PHARMACEUTICALS: Watsons Terminates License Agreement ------------------------------------------------------------ Adamis Pharmaceuticals Corporation has received notice from Allergan plc's wholly owned subsidiary, Watson Laboratories, Inc., that Watson has decided to terminate the previously announced license agreement to commercialize Adamis' Epinephrine Pre-filled Syringe product candidate for the emergency treatment of anaphylaxis in the United States. This decision follows Adamis' receipt from the FDA of a Complete Response Letter in June and precedes the deadline for Watson to terminate in order to avoid a significant nonrefundable upfront fee and milestone payment. Dr. Dennis J. Carlo, president and CEO of Adamis, stated, "I believe that today our PFS represents a greater opportunity for the Company than it did when we entered into the agreement with Watson. Although Watson has chosen to terminate the license agreement, I view this as a good opportunity to further explore the wide range of strategic options that we believe currently exist in this ever improving market. While one might initially consider this to be a disappointment, it could very well end up being a positive development for the Company. Recent published articles strongly suggest that there is a significant growing demand for an alternative to the high cost EpiPen. Based on where we are in the regulatory process, we believe we could be the organization that fulfills that demand. Many prescribers of the EpiPen have expressed the desire for a small, easy to use, intuitive, lower cost alternative. We believe that our PFS product candidate, if ultimately approved, fulfills those needs and could help give a broader range of patients access to their much needed medicine. Our plan is to meet with the FDA this quarter and we are still tracking to resubmit our updated NDA by the end of this year." Adamis Pharmaceuticals had entered into the Development, License and Commercialization Agreement with Watson on May 10, 2016. The Company had previously resubmitted its New Drug Application pursuant to Section 505(b)(2) of the Food, Drug & Cosmetic Act, as amended, to the U.S. Food & Drug Administration for marketing approval of the PFS product. The Agreement provided, among other things, that if the FDA did not approve the NDA within the time period specified in the Agreement, Licensee had the right to terminate the Agreement, and if Licensee elected to terminate the Agreement before the expiration of such time period, then certain upfront payments would not be payable before the deadline for termination. About Adamis San Diego, Calif.-based Adamis Pharmaceuticals Corporation (OTC QB: ADMP) is a biopharmaceutical company engaged in the development and commercialization of specialty pharmaceutical and biotechnology products in the therapeutic areas of respiratory disease, allergy, oncology and immunology. Adamis reported a net loss of $13.6 million on $0 of revenue for the year ended Dec. 31, 2015, compared to a net loss of $9.31 million on $0 of revenue for the year ended Dec. 31, 2014. As of March 31, 2016, Adamis had $12.7 million in total assets, $3.96 million in total liabilities and $8.69 million in total stockholders' equity. Mayer Hoffman McCann P.C., 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 has incurred recurring losses from operations, and is dependent on additional financing to fund operations. These conditions raise substantial doubt about the Company's ability to continue as a going concern, the auditors noted. ADVANCED MICRO: Reports 2016 Second Quarter Results --------------------------------------------------- Advanced Micro Devices, Inc., reported net income of $69 million on $1.02 billion of net revenue for the three months ended June 25, 2016, compared to a net loss of $181 million on $942 million of net revenue for the three months ended June 27, 2015. For the six months ended June 25, 2016, the Company reported a net loss of $40 million on $1.85 billion of net revenue compared to a net loss of $361 million on $1.97 billion of net revenue for the six months ended June 27, 2015. As of June 25, 2016, Advanced Micro had $3.31 billion in total assets, $3.72 billion in total liabilities and a $413 million total stockholders' deficit. "In the second quarter we accomplished a significant milestone as we returned to non-GAAP operating profitability based on solid execution and strong demand for our semi-custom and graphics products," said Lisa Su, AMD president and CEO. "Based on the strength of our semi-custom products and demand for our latest Radeon RX GPUs and 7th Generation A-Series APUs, we are well positioned to drive growth and market share gains in the second half of the year." Cash and cash equivalents were $957 million at the end of the quarter, up $241 million from the end of the prior quarter, primarily due to net cash proceeds received from the ATMP JV transaction with NFME which closed in Q2 2016. A full-text copy of the press release is available at: https://is.gd/49wDy4 About Advanced Micro Devices Sunnyvale, California-based Advanced Micro Devices, Inc., is a global semiconductor company. The Company's products include x86 microprocessors and graphics. Advanced Micro incurred a net loss of $660 million on $3.99 billion of net revenue for the year ended Dec. 26, 2015, compared to a net loss of $403 million on $5.50 billion of net revenue for the year ended Dec. 27, 2014. * * * As reported by the TCR on Oct. 22, 2015, Standard & Poor's Ratings Services said it lowered its corporate credit rating on Sunnyvale, Calif.-based Advanced Micro Devices Inc. to 'CCC+' from 'B-'. "The downgrade reflects our expectation that AMD will experience a more gradual return to revenue growth, ongoing competitive challenges to restore operating profitability, and more severe operating losses and negative free cash flow through 2016 than we had previously forecast, despite recent improvements to its liquidity," said Standard & Poor's credit analyst John Moore. As reported by the TCR on March 16, 2016, Fitch Ratings has downgraded and withdrawn the ratings for Advanced Micro Devices, Inc. (AMD) including the Long-term Issuer Default Rating (IDR) to 'CCC' from 'B-'. The downgrade reflects prospects for negative free cash flow (FCF) over the intermediate term and the consequent liquidity issues and refinancing risk that could develop as the 2019 and 2020 debt maturities approach. In July 2015, Moody's Investors Service lowered Advanced Micro Devices, Inc's ("AMD") corporate family rating to Caa1 from B3, and the ratings on the senior unsecured notes to Caa2 from Caa1. The downgrade of the corporate family rating to Caa1 reflects AMD's prospects for ongoing operating losses over the next year and negative free cash flow. AEROGROW INTERNATIONAL: Signs $6 Million Loan Agreement with SMG ---------------------------------------------------------------- AeroGrow International, Inc., announced a series of operational agreements as well as a term loan agreement with the Scotts Miracle-Gro Company. The operational agreements call for expansion of AeroGrow's business scope in six areas: 1. Expansion of the international territories in which AeroGrow can sell its products to include France and Germany through Amazon, web and television channels (this in addition to the company previously being granted the UK territory). 2. AeroGrow has been given the rights to establish a distributor relationship to sell AeroGarden products in China. 3. AeroGrow will assist the Scotts Miracle-Gro Company with its Direct-to-Consumer business, namely providing technical, fulfillment and operational support to Scotts and its affiliates. AeroGrow will receive a retainer for these services plus a percentage of any net sales generated by SMG. 4. AeroGrow will assist the Scotts Miracle-Gro Company with various product development initiatives, primarily related to large-scale gardens and various consumer lighting initiatives, and will be compensated for these efforts on a retainer basis. 5. AeroGrow has been granted the right to distribute large scale growing products on Amazon and AeroGarden.com. 6. AeroGrow has been granted the right to distribute a series of consumer-focused lighting products on Amazon and on AeroGarden.com. In addition, AeroGrow has received a line of strategic financing in the form of a short term loan from the Scotts Miracle-Gro Company. The funding will provide general working capital to support anticipated growth as the Company expands its retail and its direct-to-consumer sales channels and launches new product introductions. The proceeds total up to $6.0 million with an interest rate of 10%. The interest will be paid quarterly in cash and the due date is April 15, 2017. Details of these agreements are available in the 8-K that was filed with the Securities and Exchange Commission, a copy of which is available for free at https://is.gd/usnbsG "I am very pleased that our partners at the Scotts Miracle-Gro Company have once again demonstrated their confidence in AeroGrow, our line of products and our expanding business," said President and Chief Executive Officer, J. Michael Wolfe. This is evidenced by not only providing us with the short-term working capital we need to support our continued growth and new product introductions in the coming year, but by also allowing us to continue our international expansion efforts and entrusting us to provide direct-to-consumer and product development services to Scotts Miracle-Gro Company. The working capital loan has a 10% stated interest rate and will be paid in cash (rather than stock) and thus will not be dilutive to our existing shareholders. We believe these agreements further set the stage for what we anticipate will be an exciting fiscal 2017 and beyond at AeroGrow." About AeroGrow Boulder, Colo.-based AeroGrow International, Inc., is a developer, marketer, direct-seller, and wholesaler of advanced indoor garden systems designed for consumer use and priced to appeal to the gardening, cooking, and healthy eating, and home and office decor markets. Aerogrow reported a net loss attributable to common shareholders of $1.22 million on $19.61 million of net revenue for the year ended March 31, 2016, compared to a net loss attributable to common shareholders of $1.54 million on $17.9 million of net revenue for the year ended March 31, 2015. As of March 31, 2016, Aerogrow had $7.34 million in total assets, $5.14 million in total liabilities, all current, and $2.20 million in total stockholders' equity. AEROPOSTALE INC: To Challenge Sycamore's Status as Creditor ----------------------------------------------------------- Jessica Dinapoli, writing for Reuters, reported that U.S. teen retailer Aeropostale Inc (AROPQ.PK) plans to challenge in court private equity firm Sycamore Partners' claims as a creditor in its bankruptcy, according to a transcript from a court hearing that was seen by Reuters. According to the report, the fight between Aeropostale and Sycamore stands out from other bankruptcy cases of U.S. teen retailers, because very few of them triggered litigation. It could also complicate any effort by Sycamore to take over the retailer, the report noted. The lawsuit would follow an investigation by Aeropostale over the past several weeks into whether Sycamore drove the company into bankruptcy, in part by making the terms of its debt investment in the company in 2014 deliberately onerous, the report related. Sycamore affiliates loaned Aeropostale $150 million in 2014, and, as part of the deal, required that the chain make merchandise purchases from one of Sycamore's companies, MGF Sourcing, the report said. Aeropostale has said that MGF imposed new, burdensome terms on the retailer that precipitated its bankruptcy, the report further related. In bankruptcy court in New York, attorneys for Aeropostale said that they would pursue claims that could dramatically reduce Sycamore's recovery on its $150 million debt investment, the report said. It also intends to challenge Sycamore's ability to use the money it is owed as credit in bidding for the company in a bankruptcy auction scheduled for August, the report added. About Aeropostale, Inc. Aeropostale, Inc. (OTC Pink: AROPQ) is a specialty retailer of casual apparel and accessories, principally serving young women and men through its Aeropostale(R) and Aeropostale Factory(TM) stores and website and 4 to 12 year-olds through its P.S. from Aeropostale stores and website. The Company provides customers with a focused selection of high quality fashion and fashion basic merchandise at compelling values in an exciting and customer friendly store environment. Aeropostale maintains control over its proprietary brands by designing, sourcing, marketing and selling all of its own merchandise. As of May 1, 2016 the Company operated 739 Aeropostale(R) stores in 50 states and Puerto Rico, 41 Aeropostale stores in Canada and 25 P.S. from Aeropostale(R) stores in 12 states. In addition, pursuant to various licensing agreements, the Company's licensees currently operate 322 Aeropostale(R) and P.S. from Aeropostale(R) locations in the Middle East, Asia, Europe, and Latin America. Since November 2012, Aeropostale, Inc. has operated GoJane.com, an online women's fashion footwear and apparel retailer. Aeropostale, Inc. and 10 of its affiliates each filed a voluntary petition under Chapter 11 of the Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No. 16-11275) on May 4, 2016. The petitions were signed by Marc G. Schuback as senior vice president, general counsel and secretary. The Debtors listed total assets of $354.38 million and total debts of $390.02 million as of Jan. 30, 2016. The Debtors have hired Weil, Gotshal & Manges LLP as counsel; FTI Consulting, Inc. as restructuring advisor; Stifel, Nicolaus & Company, Inc. and Miller Buckfire & Company LLC as investment bankers; RCS Real Estate Advisors as real estate advisors; Prime Clerk LLC as claims and noticing agent; Stikeman Elliot LLP as Canadian counsel; and Togut, Segal & Segal LLP as conflicts counsel. Judge Sean H. Lane is assigned to the cases. The U.S. trustee for Region 2 on May 11 appointed seven creditors of Aeropostale Inc. to serve on the official committee of unsecured creditors. The Committee hired Pachulski Stang Ziehl & Jones LLP as counsel. AF LEWIS: Taps Anderson & Associates as Accountant -------------------------------------------------- AF Lewis Enterprises, LLC seeks approval from the U.S. Bankruptcy Court for the Southern District of Alabama to hire Anderson & Associates. Anderson & Associates will serve as the Debtor's accountant in connection with its Chapter 11 case. The firm will be paid $350 per month for its services, which include book keeping and filing of tax returns. Adele Anderson, owner of Anderson & Associates, disclosed in a court filing that the firm does not have any interest in the Debtor and has no connection with its creditors. The firm can be reached through: Adele Anderson Anderson & Associates 211 E. Coats Ave. Linden, AL 36748 AF Lewis Enterprises, LLC filed a petition under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Ala. Case No. 16-bk-02190) on July 1, 2016. The Debtor is represented by Silver, Voit & Thompson, Attorneys at Law, P.C. AL SILWADY: Wants to Use Guaranty Bank's Cash Collateral -------------------------------------------------------- Al Siwady, Inc. d/b/a Quebec Discount Liquors asks the U.S. Bankruptcy Court for the District of Colorado for authorization to use cash collateral. The Debtor is indebted to Guaranty Bank and Trust in the amount of $289,000, and P&M, Inc. in the amount of $43,000. The Court had previously authorized the Debtor to use cash collateral in its Second Interim Cash Collateral Order. Pursuant to the Second Interim Order, the Debtor and Guaranty Bank agreed that the Colorado Department of Revenue has a statutory first position lien on the Debtor's cash and account to the extent there are any amounts unpaid for sales taxes. Guaranty withdrew its consent to the Debtor's use of cash collateral on July 12, 2016, alleging that the Debtor failed to comply with the Second Interim Order, because of reporting errors by the Debtor and an alleged deterioration of the value of the Debtor's estate. The Debtor relates that it has undertaken every effort to comply with the terms of the Second Interim Order and to cure the defaults alleged in Guaranty Bank's Notice of Default. The Debtor further relates that it has attempted in good faith to provide Guaranty Bank with the requested information and to negotiate with Guaranty Bank regarding the continued use of cash collateral. The Debtor tells the Court that it has, among other things, made all adequate protection payments required to the Colorado Department of Revenue and Guaranty Bank, and provided Guaranty Bank with access to its store on two occasions, following requests by Guaranty Bank. The Debtor further tells the Court that despite its efforts to cure the alleged defaults identified in the Guaranty Bank's Notice of Default, Guaranty Bank has refused to withdraw the Notice of Default, preventing the Debtor from replenishing its inventory and causing immediate harm to the Debtor's operations. The Debtor relates that it in order to pay necessary operating expenses, it must immediately use cash collateral in which Guaranty Bank and the Colorado Department of Revenue may have an interest. The Debtor proposes to provide its secured creditors with post-petition liens on all post-petition inventory and income derived from the operation of the business and assets, to the extent that the use of the cash results in a decrease in the value of secured creditor's interest in the collateral. The Debtor's proposed Budget covers the period beginning on July 12, 2016 and ending on August 2, 2016. The Budget provides for total cost of goods sold in the amount of $52,344 and total expenses in the amount of $21,060. A full-text copy of the Debtor's Motion, dated July 22, 2016, is available at https://is.gd/b1kW9u About Al Silwady, Inc., d/b/a Quebec Discount Liquors Al Silwady, Inc., dba Quebec Discount Liquors is a Denver, Colorado-based company that operates a retail liquor store. It filed for Chapter 11 bankruptcy protection (Bankr. D. Colo. Case No. 16-15100) on May 20, 2016. The bankruptcy petition was signed by Mohammad Ahmad, owner. The Debtor is represented by Lee M. Kutner, Esq., at Kutner Brinen Garber, PC. The Debtor estimated total assets and liabilities at $100,001 to $500,000. AMERICAN AIRLINES: S&P Affirms 'BB-' CCR, Outlook Stable -------------------------------------------------------- S&P Global Ratings said that it has affirmed its 'BB-' corporate credit rating on Fort Worth, Texas-based American Airlines Group Inc. and its subsidiaries American Airlines Inc. and US Airways Inc. The outlook is stable. At the same time, S&P raised its ratings on the companies' unsecured debt to 'BB-' from 'B+' and revised S&P's recovery ratings on the debt to '4' from '5' based on its expectation that the unsecured creditors would receive greater recovery in a default scenario because of American Airlines Inc.'s improving aircraft fleet. The '4' recovery rating indicates S&P's expectation for average (30%-50%; lower end of the range) recovery in a default scenario. Additionally, S&P affirmed its issue-level ratings on most of the companies' EETCs, though S&P also raised and lowered its ratings on select certificates. Specifically, S&P raised its issue-level ratings on America West Airlines' (now part of US Airways Inc.) 1998-1 class B pass-through certificates to 'A- (sf)' from 'BBB+ (sf)', US Airways Inc.'s 1998-1 class B certificates to 'A- (sf)' from 'BBB+ (sf)', US Airways Inc.'s 1999-1 class B certificates to 'A- (sf)' from 'BBB+ (sf)', and US Airways Inc.'s 1999-1 class C certificates to 'BBB- (sf)' from 'BB+ (sf)'. S&P lowered its issue-level ratings on American Airlines Inc.'s 2014-1 class B certificates to 'BBB (sf)' from 'BBB+ (sf)'. These rating actions are based on changes in collateral coverage as aircraft values have changed and the certificates have amortized. "We expect AAG to report solid earnings and cash flow in 2016 and 2017, though at levels that are somewhat below the very strong results the company posted in 2015 (when it generated record pretax income of $4.6 billion)," said S&P Global credit analyst Philip Baggaley. Heightened competition in certain markets, which has forced the company to lower its pricing, and the negative effects of foreign currency translation are pressuring American's revenue. This is similar to the near-term challenges that are facing other U.S. airlines. However, measures of industry revenue, such as passenger revenue per available seat mile (PRASM), remain healthy in absolute terms. This pressure should be partly offset by lower average fuel prices (AAG does not hedge its fuel purchases, so all of the benefits flow through to their income statement). In the first quarter of 2016, AAG's pretax earnings were $1.1 billion, outpacing the $932 million the company reported in first-quarter 2015, though S&P expects that year-over-year comparisons of fuel prices and costs will become less favorable as the year progresses. AAG has heavy capital spending commitments (more than $5 billion expected this year) as it continues to modernize its fleet. In addition, management has elected to continue undertaking substantial share repurchases even though this will likely raise the company's leverage somewhat. In 2015, AAG's fully adjusted funds from operations (FFO)-to-debt ratio was 24.6% and its debt-to-EBITDA metric was 3.3x, both of which are strong for the current rating. S&P believes that these ratios will likely weaken to around 20% and 3.8x, respectively, this year, which should still be enough to support S&P's corporate credit rating on the company. S&P expects American Airlines Group's 2016 earnings and cash flow to be weaker than the very strong levels the company posted in 2015. Nonetheless, S&P anticipates that they will still be good in absolute terms and by historical standards. The company's credit ratios will likely deteriorate somewhat as management continues to spend heavily on new aircraft and share repurchases, pushing AAG's funds flow-to-debt ratio to around 20%. S&P could lower its ratings on AAG if the company's revenue and earnings deteriorate and the decline is not offset by reductions in its share repurchases or capital spending, leading AAG's FFO-to-debt ratio to fall below 15% for a sustained period and causing S&P to revise its assessment of the company's liquidity to adequate. Although unlikely, S&P could raise its ratings on AAG if stronger-than-expected earnings and cash flow or reduced levels of capital spending and share repurchases cause its funds flow-to-debt ratio to rise to more than 30% on a sustained basis. AMPAL-AMERICAN: NY Court Denies Bid to Disqualify Ch. 7 Trustee --------------------------------------------------------------- Judge Katherine Polk Failla of the United States District Court for the Southern District of New York affirmed the order issued by the United States Bankruptcy Court for the Southern District of New York, which authorized the appellee, Alex Spizz, the Chapter 7 Trustee of Ampal-American Israel Corporation, to retain the law firm of Tarter Krinsky & Drogin LLP as his general counsel, and denied the appellants' cross-motion to disqualify the Trustee. The appeal was filed by Yosef A. Maiman and Merhav (M.N.F.) Limited, who argued that the law firm is conflicted from representing the Trustee under 11 U.S.C. section 327, and that the Trustee should have been removed for cause for various reasons. The bankruptcy court saw no reason to remove the Trustee, or to deny him the professional assistance that he sought, and saw many reasons to keep him. The bankruptcy case is In re: AMPAL-AMERICAN ISRAEL CORP., Debtor, Bankr. No. 12-13689 (SMB) (S.D.N.Y.). The appealed case is YOSEF A. MAIMAN and MERHAV (M.N.F.) LIMITED, Appellants, v. ALEX SPIZZ, Appellee, No. 15 Civ. 6569 (KPF) (S.D.N.Y.). A full-text copy of Judge Failla's July 18, 2016 opinion and order is available at https://is.gd/MA4k2A from Leagle.com. Yosef A. Maiman, Merhav (M.N.F.) Limited are represented by: David M. Friedman, Esq. Daniel Alexander Fliman, Esq. KASOWITZ, BENSON, TORRES & FRIEDMAN L.L.P. 1633 Broadway New York, NY 10019 Tel: (212)506-1700 Fax: (212)506-1800 Email: dfriedman@kasowitz.com dfliman@kasowitz.com Alex Spizz is represented by: Arthur Goldstein, Esq. NACHAMIE, SPIZZ COHEN & SERCHUK, P.C. 1350 Broadway New York, NY 10018 Tel: (212)216-1119 Email: agoldstein@tarterkrinsky.com About Ampal-American Israel Corp. Ampal-American Israel Corporation -- http://www.ampal.com/-- acquired interests primarily in businesses located in Israel or that are Israel-related. Ampal-American filed a Chapter 11 petition (Bankr. S.D.N.Y. Case No. 12-13689) on Aug. 29, 2012, to restructure the Company's Series A, Series B and Series C debentures. Bankruptcy Judge Stuart M. Bernstein presides over the case. Ampal-American sought bankruptcy protection in the U.S. because bankruptcy laws in Israel would lead to the Company's liquidation. Michelle McMahon, Esq., at Bryan Cave LLP, serves as the Debtor's counsel. Houlihan Lokey serves as investment banker. The petition was signed by Irit Eluz, chief financial officer, senior vice president. The Company scheduled $290,664,095 in total assets and $349,413,858 in total liabilities. A three-member official committee of unsecured creditors is represented by Brown Rudnick as counsel. In May 2013, the Bankruptcy Court converted Ampal's Chapter 11 bankruptcy to a Chapter 7 liquidation after determining that the energy investment holding company does not have sufficient cash to execute a reorganization plan. ANOTHER DOOR: Seeks to Hire Anthony D. Nini as Accountant --------------------------------------------------------- Another Door Opens Recovery Center, LLC seeks approval from the U.S. Bankruptcy Court for the District of New Jersey to hire an accountant. The Debtor proposes to hire the accounting firm of Anthony D. Nini, CPA to provide services in connection with its Chapter 11 case. The firm's professionals and their hourly rates are: Certified Public Accountants $210 - $260 Manager Level $180 - $200 Senior Associate Level $100 - $150 Associates Level $80 - $95 Paraprofessionals $60 - $75 Anthony Nini, owner of the firm, disclosed in a court filing that his firm is "disinterested" as defined in section 101(14) of the Bankruptcy Code. The Debtor can be reached through its counsel: Scott Eric Kaplan, Esq. Law Offices of Scott E. Kaplan, LLC 12 N. Main St., PO Box 157 Allentown, NJ 08501 Phone: 609-259-1112 About Another Door Opens Another Door Opens Recovery Center, LLC, filed for Chapter 11 bankruptcy protection (Bankr. D.N.J. Case No. 16-17201) on April 14, 2016. Scott Eric Kaplan, Esq., at Scott E. Kaplan, LLC, serves as the Debtor's bankruptcy counsel. ARGITAKOS LLC: Taps Gazis & Associates as Accountant ---------------------------------------------------- Argitakos, LLC seeks approval from the U.S. Bankruptcy Court for the District of Connecticut to hire an accountant. The Debtor proposes to hire Gazis & Associates Inc. to prepare its tax returns and provide other accounting services in connection with its Chapter 11 case. The firm's professionals and their hourly rates are: Zannis Gazis $300 Lizanne Campanini $200 Greg D'aleo $300 Ms. Campanini disclosed in a court filing that the firm does not hold any interest adverse to the Debtor's estate. The firm can be reached through: Lizanne Campanini Gazis & Associates Inc. 619 Hazard Avenue Enfield, CT 06082 Phone: (860) 763-3478 Fax: (860) 763-5978 The Debtor can be reached through its counsel: Matthew K. Beatman, Esq. Zeisler & Zeisler, P.C. 10 Middle Street, 15th Floor Bridgeport, CT 06604 Telephone: 203-368-4234 Facsimile: 203-548-0889 About Argitakos LLC Argitakos, LLC filed a Chapter 11 bankruptcy petition (Bankr. D. Conn. Case No. 2:16-bk-20851) on May 27, 2016. ASTROTURF LLC: Committee Taps GlassRatner as Financial Advisor -------------------------------------------------------------- The official committee of unsecured creditors of AstroTurf, LLC seeks approval from the U.S. Bankruptcy Court for the Northern District of Georgia to hire GlassRatner Advisory & Capital Group, LLC as its financial advisor. The firm will provide these services in connection with the Debtor's Chapter 11 case: (a) analyze the financial operations of the Debtor; (b) analyze the financial ramifications of any proposed transactions for which the Debtor seeks court approval; (c) conduct any requested financial analysis; (d) assist the committee in reviewing the monthly statements of operations submitted by the Debtor; (e) assist the committee in evaluating cash flow or other projections prepared by the Debtor; (f) perform forensic investigating services regarding pre- bankruptcy activities of the Debtor in order to identify potential causes of action; (g) analyze transactions with insiders, affiliated or related companies; (h) prepare certain valuation analyses of the Debtor’s business and assets and those of its affiliates; and (i) testify at court hearings. The firm's professionals and their hourly rates are: Ian Ratner Principal $484 Dan Korczyk Sr. Managing Director $396 Jason Cristal Managing Director $330 Steven Prager Associate $172 Ian Ratner disclosed in a court filing that the firm is a "disinterested person" as defined in section 101(14) of the Bankruptcy Code. The firm can be reached through: Ian Ratner GlassRatner Advisory & Capital Group, LLC 3445 Peachtree Rd., Suite 1225 Atlanta, GA 30326 Phone: 404-835-8840 Email: iratner@glassratner.com About AstroTurf LLC AstroTurf, LLC sought protection under Chapter 11 of the Bankruptcy Code (Bankr. N. D. Ga. Case No. 16-41504) on June 28, 2016. The petition was signed by Sean M. Harding, chief restructuring officer. The case is assigned to Judge Paul W. Bonapfel. The Debtor is represented by Paul K. Ferdinands, Esq., at King & Spalding LLP. At the time of the filing, the Debtor estimated its assets and liabilities at $10 million to $50 million. BANK OF ANGUILLA: Taps Weinberg Zareh as Conflicts Counsel ---------------------------------------------------------- The National Bank of Anguilla (Private Banking & Trust) Ltd. seeks approval from the U.S. Bankruptcy Court for the Southern District of New York to hire Weinberg Zareh & Geyerhahn, LLP. Weinberg will provide legal assistance in matters where Reed Smith LLP, the lead counsel, cannot represent the Debtor due to a conflict of interest. The firm's professionals and their hourly rates are: Partners $400 - $700 Counsel $300 - $500 Associates $150 - $400 Paralegals $125 - $250 Seth Weinberg and Omid Zareh, the attorneys designated to represent the Debtor, will each receive $550 per hour. In a court filing, Omid Zareh disclosed that the firm is a "disinterested person" as defined in section 101(14) of the Bankruptcy Code. The firm can be reached through: Omid Zareh, Esq. Seth B. Weinberg, Esq. Weinberg Zareh & Geyerhahn, LLP 45 Rockefeller Plaza, 20th Floor New York, New York 10111 Phone: (212) 899-5470 Email: Omid@WZGLLP.com Email: Seth@WZGLLP.com About National Bank of Anguilla The National Bank of Anguilla was formed in 1984 and began operating in 1985, when it acquired the Anguilla branch of the Bank of America National Trust & Savings Association, according to its website. The private-banking unit provides financial services to offshore clients around the world and is wholly owned by its parent, Bloomberg News notes. The parent ceased banking operations on April 22, 2016. It began liquidating in an Anguillan court the following month. On May 26, it petitioned for bankruptcy court protection from U.S. creditors. Banking operations were transferred to the National Commercial Bank of Anguilla, which is wholly owned by the government. The private bank's case is In re National Bank of Anguilla (Private Banking & Trust Ltd.), 16-11806, U.S. Bankruptcy Court, Southern District of New York in Manhattan. The parent's case is 16-11529. BERNARD L. MADOFF: Judge Shrinks Trustee $905M Suit vs. Fla. Firm ----------------------------------------------------------------- The American Bankruptcy Institute, citing Jonathan Stempel of Reuters, reported that a federal bankruptcy judge narrowed a $905 million lawsuit filed by the trustee seeking money for Bernard Madoff's victims against executives who ran a now-defunct Florida accounting firm that had close ties to the swindler. According to the report, U.S. Bankruptcy Judge Stuart Bernstein in Manhattan said Irving Picard cannot recover alleged improper transfers made before 2001 to Palm Beach-based Avellino & Bienes, which ran the earliest "feeder funds" that sent client money to Madoff. The decision is a setback for Picard, in one of the larger of his more than 1,000 lawsuits seeking to recoup money from people he believes benefited improperly from Madoff's fraud, the report noted. Picard accused principals Frank Avellino and Michael Bienes of helping conceal Madoff's Ponzi scheme, including in 1992 when Madoff created fake account statements to help their firm defend itself in a U.S. Securities and Exchange Commission probe, the report related. The trustee said the duplicity enabled Avellino, Bienes and their wives to reap millions of dollars to buy multiple luxury homes, art by Pablo Picasso and Edgar Degas for the Avellinos, and a cold storage compartment to store Dianne Bienes' furs, the report further related. But in a 62-page decision, Bernstein agreed with the defendants that Picard lacked power to recover transfers made before Jan. 1, 2001, the report said. While Picard can recover actual transfers by the sole proprietorship, "it does not follow that the trustee can recover the actual withdrawals of cash by customers of the sole proprietorship," Judge Bernstein wrote, the report added. The case is Picard v. Avellino et al, U.S. Bankruptcy Court, Southern District of New York, No. 10-05421. About Bernard L. Madoff Bernard L. Madoff Investment Securities LLC and Bernard L. Madoff orchestrated the largest Ponzi scheme in history, with losses topping US$50 billion. On Dec. 15, 2008, the Honorable Louis A. Stanton of the U.S. District Court for the Southern District of New York granted the application of the Securities Investor Protection Corporation for a decree adjudicating that the customers of BLMIS are in need of the protection afforded by the Securities Investor Protection Act of 1970. The District Court's Protective Order (i) appointed Irving H. Picard, Esq., as trustee for the liquidation of BLMIS, (ii) appointed Baker & Hostetler LLP as his counsel, and (iii) removed the SIPA Liquidation proceeding to the Bankruptcy Court (Bankr. S.D.N.Y. Adv. Pro. No. 08-01789) (Lifland, J.). Mr. Picard has retained AlixPartners LLP as claims agent. On April 13, 2009, former BLMIS clients filed an involuntary Chapter 7 bankruptcy petition against Bernard Madoff (Bankr. S.D.N.Y. 09-11893). The petitioning creditors -- Blumenthal & Associates Florida General Partnership, Martin Rappaport Charitable Remainder Unitrust, Martin Rappaport, Marc Cherno, and Steven Morganstern -- assert US$64 million in claims against Mr. Madoff based on the balances contained in the last statements they got from BLMIS. On April 14, 2009, Grant Thornton UK LLP as receiver placed Madoff Securities International Limited in London under bankruptcy protection pursuant to Chapter 15 of the U.S. Bankruptcy Code (Bankr. S.D. Fla. 09-16751). The Chapter 15 case was later transferred to Manhattan. In June 2009, Judge Lifland approved the consolidation of the Madoff SIPA proceedings and the bankruptcy case. Judge Denny Chin of the U.S. District Court for the Southern District of New York on June 29, 2009, sentenced Mr. Madoff to 150 years of life imprisonment for defrauding investors in United States v. Madoff, No. 09-CR-213 (S.D.N.Y.). From recoveries in lawsuits coupled with money advanced by SIPC, Mr. Picard has commenced distributions to victims. As of December 2015, the SIPA Trustee has recovered more than $10.91 billion and has distributed approximately $9.16 billion, including $833 million in committed advances from the Securities Investor Protection Corporation (SIPC). BILL BARRETT: Provides Q2 2016 Commodity Price & Derivatives Update ------------------------------------------------------------------- Bill Barrett Corporation provided an update on certain second quarter of 2016 items, including commodity price and derivatives data and the weighted average basic and diluted shares outstanding for the second quarter of 2016 and common shares outstanding at June 30, 2016. For the second quarter of 2016, West Texas Intermediate oil prices averaged $45.59 per barrel, Northwest Pipeline natural gas prices averaged $1.66 per MMBtu and NYMEX natural gas prices averaged $1.95 per MMBtu. The Company had derivative commodity swaps in place for the second quarter of 2016 for 7,300 barrels of oil per day tied to WTI pricing at $81.65 per barrel, 5,000 MMBtu of natural gas per day tied to NWPL regional pricing at $4.10 per MMBtu and no hedges in place for NGLs. Based on preliminary unaudited results, the Company expects to realize a cash commodity derivative gain of $25.0 million in the second quarter due to positive derivative positions. The Company expects its second quarter commodity price differentials to benchmark pricing before commodity derivative gains, related to delivery location and quality adjustments, to approximate: oil less $5.66 price per barrel versus WTI; and natural gas less $0.16 per thousand cubic feet compared to NWPL. The DJ Basin oil price differential averaged $4.82 per barrel. The Company continues to realize lower oil price differentials as Denver-Julesburg and Uinta Basin infrastructure expands and local pricing improves. NGL prices averaged 28% of WTI price per barrel. For the remainder of 2016, approximately 7,750 barrels per day of oil is hedged at an average WTI price of $72.57 per barrel. Realized sales prices will reflect basis differentials from the index prices to the sales location. Following the completion of the debt exchange announced on June 2, 2016, the Company expects to report that the weighted average common basic and diluted shares for the second quarter will be approximately 51.8 million and that as of June 30, 2016, the number of common shares outstanding was approximately 60.2 million. A full-text copy of the press release is available at: https://is.gd/aMFSKt About Bill Barrett Bill Barrett Corporation is an independent energy company that develops, acquires and explores for oil and natural gas resources. All of the Company's assets and operations are located in the Rocky Mountain region of the United States. Bill Barrett reported a net loss of $488 million in 2015 following net income of $15.08 million in 2014. As of March 31, 2016, Bill Barrett had $1.44 billion in total assets, $938.23 million in total liabilities and $506 million in total stockholders' equity. * * * As reported by the TCR on June 10, 2016, Moody's Investors Service affirmed Bill Barrett Corporation's (Bill Barrett) Caa2 Corporate Family Rating (CFR) and revised the Probability of Default Rating (PDR) to Caa2-PD/LD from Caa2-PD. "Bill Barrett's debt for equity exchange achieved some reduction in its overall debt burden, but the company's cash flow and leverage metrics continue to remain challenged as its hedges roll off in 2017," commented Amol Joshi, Moody's Vice President. BILLINGSLEY PRECISION: Wants Authorization to Use Cash Collateral ----------------------------------------------------------------- Billingsley Precision Machining dba West Precision Machine asks the U.S. Bankruptcy Court for the Northern District of Texas, for authorization to use cash collateral. Southwest Bank and CDC Capital assert liens on the Debtor's inventory and accounts receivable. The Debtor relates that it needs cash to make payroll and to pay other immediate expenses to maintain its business operations. The Debtor's proposed budget provides for total expenses in the amount of $27,372. The expenses listed in the Debtor's Budget include utilities, telephone, insurance, payroll and cost of goods, among others. A full-text copy of the Debtor's Motion, dated July 22, 2016, is available at https://is.gd/K7SFRP A full-text copy of the Debtor's proposed Budget, dated July 22, 2016, is available at https://is.gd/yyyyUG Billingsley Precision Machining dba West Precision Machine is represented by: Eric A. Liepins, Esq. ERIC A. LIEPINS, P.C. 12770 Coit Road, Suite 1100 Dallas, TX 75251 Telephone: (972) 991-5591 About Billingsley Precision Machining dba West Precision Machine Billingsley Precision Machining dba West Preciscion Machine filed a chapter 11 petition (Bankr. N.D. Tex. Case No. 16-42788) on July 22, 2016. The Debtor is represented by Eric A. Liepins, Esq., at Eric A. Liepins, P.C. BILLYS ROADHOUSE: U.S. Trustee Unable to Appoint Committee ---------------------------------------------------------- The Office of the U.S. Trustee disclosed in a court filing that no official committee of unsecured creditors has been appointed in the Chapter 11 case of Billys Roadhouse, Inc. Billys Roadhouse, Inc., filed a Chapter 11 petition (Bankr. W.D. Pa. Case No. 16-21969) on May 25, 2016. The Debtor is represented by Robert O. Lampl, Esq. BING ENERGY: Case Summary & 14 Unsecured Creditors -------------------------------------------------- Debtor affiliates filing separate Chapter 11 bankruptcy petitions: Debtor Case No. ------ -------- Bing Energy International, Inc. 16-40322 2051 E. Paul Dirac Drive Tallahassee, FL 32310 Bing Energy International, LLC 16-40323 2051 E. Paul Dirac Drive Tallahassee, FL 32310 Chapter 11 Petition Date: July 7, 2016 Court: United States Bankruptcy Court Northern District of Florida (Tallahassee) Judge: Hon. Karen K. Specie Debtors' Counsel: Brian G. Rich, Esq. BERGER SINGERMAN LLP 313 N. Monoe Street, 2nd Floor Tallahassee, FL 32301 Tel: (850) 561-3010 Fax: (850) 561-3013 E-mail: brich@bergersingerman.com Estimated Estimated Assets Liabilities --------- ----------- Bing Energy International, Inc. $1M-$10M $100K-$500K Bing Energy International, LLC $1M-$10M $500K-$1M The petition was signed by Dean R. Minardi, chief executive officer. A copy of Bing Energy International, Inc.'s list of 14 unsecured creditors is available for free at: http://bankrupt.com/misc/flnb16-40322.pdf A copy of Bing Energy International, LLC's list of 20 largest unsecured creditors is available for free at: http://bankrupt.com/misc/flnb16-40323.pdf BING ENERGY: Hires Berger Singerman as Counsel ---------------------------------------------- Bing Energy International, Inc., and Bing Energy International, LLC seek permission from the U.S. Bankruptcy Court for the Northern District of Florida to employ Berger Singerman LLP as counsel for the Debtors , nunc pro tunc to July 7, 2016. The Debtors require Berger Singerman to: a. advise the Debtors with respect to their responsibilities on complying with the United States Trustee's Guidelines and reporting Requirements and with the rules of the Court; b. prepare motions, pleadings, orders, applications, adversary proceedings, and other legal documents necessary in the administration of there cases; c. protect the interest of the Debtors on all matters pending before the Court; and d. represent the Debtors in negotiation with their creditors and in the preparation of a plan Berger Singerman will be paid at these hourly rates: Brian G. Rich $465 Associates/of-counsel $310-$500 Legal Assistants/Paralegal $85-$235 On April 12, 2016, Berger Singerman received a retainer in the amount of 15,000 from Bing Energy International, Inc., which was deposited into the trust account of Berger Singerman. On May 10, 2016, Berger Singerman applied the sum of $1,770.25 from the retainer, toward payment of pre-petition expenses incurred by Berger Singerman with respect to its representation of Bing Energy International, LLC and Bing Energy International, Inc. in the State Court Action. On June 7, 2016, Berger Singerman applied the sum of $5,735.45 from the retainer toward payment of pre-petition fees and expenses, leaving a balance of $7,494.30. On June 23, 2016, Berger Singerman received a second retainer in the amount of 75,000 from Bing Energy International, Inc., which was deposited into the trust account of Berger Singerman. On July 7, 2016, prior to the commencement of these chapter 11 cases, Berger Singerman applied the sum of $29,351.53 from the initial retainer and second retainer, toward payment in full of all pre-petition fees and expense. Accordingly, Berger Singerman is holding the sum of $553,142.77 in its trust account. Lewis M. Killian, Jr., attorney and of-counsel to the law firm of Berger Singerman LLP, assured the Court that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtors and their estates. Berger Singerman may be reached at: Lewis M. Killian, Jr. Brian G. Rich Berger Singerman LLP 125 South Gadsden Street, Suite 300 Tallahassee, FL 32301 Tel: (850)561-3010 Fax: (850)561-3013 E-mail: lkillian@BergerSingerman.com brich@BergerSingerman.com BMR HOLDINGS: Plan Confirmation Hearing on Aug. 15 -------------------------------------------------- BMR Holdings, LLC, is now a step closer to emerging from Chapter 11 protection after a bankruptcy court approved the outline of its plan of reorganization. The U.S. Bankruptcy Court for the Middle District of Florida on July 19 conditionally approved BMR Holdings' disclosure statement, allowing the company to begin soliciting votes from creditors for its plan. The court required the company to file a ballot report no later than three days before the hearing on confirmation of the plan. Meanwhile, ballots accepting or rejecting the plan must be filed no later than August 8. The bankruptcy court will hold a hearing on August 15, at 10:00 a.m., to consider confirmation of the plan. The hearing will take place at Courtroom 9B, U.S. Bankruptcy Court, 801 North Florida Avenue, Tampa, Florida. Objections to the plan are due by August 8. About BMR Holdings BMR Holdings, LLC, sought protection under Chapter 11 of the Bankruptcy Code (Bankr. M.D. Fla. Case No. 16-02944) on April 6, 2016. The petition was signed by Michael Levich, manager. The case is assigned to Judge K. Rodney May. The Debtor is represented by Stephen R. Leslie, Esq., at Stichter, Riedel, Blain & Postler, P.A. The Debtor estimated both assets and liabilities in the range of $1 million to $10 million. BRIGHTER CHOICE: Fitch Affirms 'B' Rating on $16.1MM Revenue Bonds ------------------------------------------------------------------ Fitch Ratings has affirmed the rating on these bonds issued by the Albany Industrial Development Agency (NY) on behalf of the Brighter Choice Charter School for Boys and the Brighter Choice Charter School for Girls (together, BCCS): -- $16.1 million of civic facilities revenue bonds, series 2007A at 'B'. The Rating Outlook is Stable. SECURITY The bonds are a general obligation of BCCS and are payable from gross revenues: primarily state-mandated school district per-pupil aid payments. Further security includes a cash-funded reserve equal to maximum annual debt service (MADS), other reserve funds under the indenture and a first mortgage lien on the two school facilities. KEY RATING DRIVERS HIGHLY SPECULATIVE CREDIT CHARACTERISTICS: The 'B' rating reflects material risk due to an ongoing technical default through fiscal 2015, a short three-year charter renewal term through 2018, a trend of volatile operating performance and minimal financial cushion. Offsetting factors that provide a margin of safety include: adequate academic performance, solid enrollment trends, improving financial results and stabilized management. OPERATIONS IMPROVE; TECHNICAL DEFAULT CONTINUES: As calculated under the bond documents, coverage remained below 1x in fiscal 2015, which is an event of default. However, operating results did improve materially. BCCS covered debt service from operating cash flow, and Fitch estimates that results would have met the 1.1x coverage covenant excluding certain non-recurring, non-cash write-offs. Management believes fiscal 2016 coverage will meet the 1.1x bond covenant requirement. MINIMAL RESERVES: The schools have minimal balance sheet cushion to offset weak operating performance or absorb unexpected pressures. Available funds at June 30, 2015 accounted for a very thin 3.6% of operating expenses and 1.9% of debt. RATING SENSITIVITIES DEBT SERVICE COVERAGE: The Brighter Choice Charter Schools (BCCS) expect to meet debt service coverage covenants in fiscal 2016. Certified coverage in excess of 1x as calculated under the bond documents would cause BCCS to exit technical default and, in conjunction with continued operating improvement, could lead to positive rating action. CHARTER SCHOOL SECTOR RISKS: A limited financial cushion; substantial reliance on enrollment-driven, per-pupil funding, and charter renewal risk are credit concerns common among all charter school transactions which, if pressured, would negatively affect the rating. CREDIT PROFILE BCCS opened in 2002 with a mission to provide a single-gender public school alternative for students from economically disadvantaged families. The schools were launched with the support of the Brighter Choice Foundation, which developed the facilities. The 2007A bond proceeds funded the schools' purchase of the facilities from the foundation and certain enhancements. The K-4 schools remain fully enrolled at or above their chartered enrollment of 270 each; academic results are generally equal to or stronger than those of the Albany City School District but weaker than statewide results. The schools are authorized by the New York State Board of Regents and have received three charter renewals since inception. In March 2015, the authorizer granted a three-year renewal, short of the full five-year term requested by BCCS, due to financial and management concerns. A short-term renewal is a speculative-grade characteristic. The elementary schools are legally separate from and have no obligations related to the Brighter Choice Charter Middle Schools, which lost their charters and were closed at the end of the 2014-2015 academic year. EXPANSION NOT A CONCERN BCCS recently obtained authorizer permission to expand into fifth grade, which it will open for fall 2016. Management reports that the schools are on track to fill the new grade level at both schools from continuing students (an increase of about 40 students each). Constructions costs to accommodate the expansion were manageable, and additional enrollment is expected to result in net improvement to operating results. Fitch considers the authorizer's support of the fifth grade expansion a credit positive and an indication that material concerns at the time of the last charter renewal are being addressed. STABILIZED MANAGEMENT In 2015, BCCS ended its relationship with the Albany Charter School Network (affiliated with the foundation), which had been providing financial management and academic support to the schools. BCCS reports that the network was unable to continue prior levels of support due to external factors. In addition, the management contract with the network had drawn public criticism over its structure. BCCS has engaged experienced outside consultants to support finances and operations, and has maintained academic functions internally. TECHNICAL DEFAULT CONTINUES Fiscal 2015 debt service coverage fell short of Fitch's prior expectations and remained below 1x as calculated under the bond documents. Coverage below 1.1x triggers a consultant call, but coverage below 1x, as occurred in fiscal 2014 and 2015 (Fitch estimates 0.9x and 0.8x, respectively), is an event of default under the documents and allows for bondholders to accelerate or pursue other remedies that could lead to a payment default. All debt service payments have been made on time. Fitch understands that bondholders have neither accelerated nor provided a formal covenant waiver, but are actively monitoring BCCS' operations. Despite continued technical default, underlying operations did improve materially in fiscal 2015; further improvement is projected for the fiscal year ended June 30, 2016. Fitch believes that improved coverage expectations and a reportedly constructive relationship with bondholders mitigates this risk somewhat, and that remaining risks related to the technical default are appropriately reflected in the 'B' rating. UNDERLYING FINANCIAL IMPROVEMENT Weakened GAAP-basis results in fiscal 2015 mainly reflect non-recurring bad debt write-offs. Management reports that fiscal 2015 included a "clean-up" of accounts as part of bringing in a new CFO and instituting reporting and financial controls; the most notable effect was writing off all aged receivables. Operating cash flow was sufficient to cover debt service in fiscal 2015. Fitch estimates that, excluding non-recurring bad debt expense, fiscal 2015 coverage would have been about 1.2x, in excess of covenant requirements. Interim results through the third quarter of fiscal 2016 show results ahead of the prior year. The schools project a balanced budget and compliance with all covenants in fiscal 2016. MINIMAL FINANCIAL CUSHION The schools have minimal balance sheet cushion to offset weak operating performance or absorb unexpected pressures. Available funds of $318,000 at June 30, 2015 are very low relative to operating expenses (3.6%) and debt (1.9%), providing minimal cushion to cover debt service, operating losses, or unanticipated variances to budget. A debt service reserve cash-funded to MADS is not included in Fitch's available funds but provides a small margin of safety. BRYAN FORESEE: Exit Plan to Pay $7,200 to Unsecured Creditors ------------------------------------------------------------- Bryan and Tracie Foresee on July 19 filed with the U.S. Bankruptcy Court for the Western District of Arkansas a plan to exit Chapter 11 protection. Under the reorganization plan, unsecured creditors will be paid $7,200 over the first five years of the plan, which represents what the Debtors believe to be their disposable income over that period of time once the plan is approved. A pro rata distribution will be made on all valid and allowed unsecured claims in the amount of $1,440 on the anniversary date of the confirmed plan each year for a period of 5 years. The Debtors will fund the plan from their wages, according to the disclosure statement detailing the plan. A copy of the disclosure statement is available for free at https://is.gd/4P9zY4 The Debtors are represented by: Don Brady, Esq. AADR 805 Greenwood Ave Fort Smith, Arkansas 72901 (Phone: 479-784-9221 Email: aadrbk@gmail.com About The Foresees Bryan D. Foresee and Tracie J. Foresee sought protection under Chapter 11 of the Bankruptcy Code (Bankr. W.D. Ark. Case No. 16-71479) on June 21, 2016. BUDD COMPANY: Court Further Reduces UAW Counsel's Fee Application ----------------------------------------------------------------- Judge Jack B. Schmetterer of the United States Bankruptcy Court for the Northern District of Illinois, Eastern Division, issued an opinion making further reduction in the sixth fee application of the counsel for UAW, Cleary Gottlie Steen & Hamilton LLP. Judge Schmetterer disallowed fees sought by the UAW counsel in connection with certain categories of work. The judge requested the fee examiner to confer with the UAW counsel and, after deducting all reductions previously requested and agreed to, make the further following additional deductions: (1) To reduce all fees sought for work on objections to any draft of the disclosure statement except the Ninth Amended Draft by 50%; and (2) to disallow entirely all additional work done on the restricting motion. The case is In re: The Budd Company, Inc. Debtor, Case No. 14 B 11873 (Bankr. N.D. Ill.). A full-text copy of Judge Schmetterer's July 22, 2016 order is available at http://bankrupt.com/misc/ilnb14-11873-1941.pdf About The Budd Company The Budd Company, Inc., a former supplier to the automotive industry, filed for chapter 11 bankruptcy protection (Bankr. N.D. Ill. Case No. 14-11873) on March 31, 2014, with a deal to settle potential claims against its parent, ThyssenKrupp AG. The company -- which ceased manufacturing operations in 2006 and does not have any current employees, facilities or customers -- has obligations consisting largely of medical and other benefits to approximately 10,000 former employees. Liabilities amount to approximately $1 billion with assets of approximately $400 million. Most of the debt consists largely of medical and other benefits to approximately 10,000 former employees. The Debtor disclosed $387,555,681 in assets and $1,107,350,034 in liabilities as of the Chapter 11 filing. The Hon. Jack B. Schmetterer oversees the case. The Debtor has tapped Proskauer Rose LLP as Chapter 11 counsel, Dickinson Wright PLLC as special counsel, Epiq Bankruptcy Solutions, LLC as noticing, claims and balloting agent, and Conway MacKenzie Management Services, LLC's Charles M. Moore as CRO. The U.S. Trustee appointed five individuals to serve on the Committee of Executive & Administrative Retirees. The Segal Company (Eastern States), Inc. serves as the Committee's actuarial consultant. The Committee retained Solic Capital Advisors, LLC as its financial advisor. Reed Heiligman, Esq., at FrankGecker LLP, in Chicago, Illinois, represents the ad hoc committee of asbestos personal injury claimants. BULOVA TECHNOLOGIES: Amends Second Quarter Form 10-Q ---------------------------------------------------- Bulova Technologies Group, Inc., has amended its quarterly report on Form 10-Q/A for the three and six months ended March 31, 2016, that was originally filed on May 23, 2016, to: 1. comply with Rule 10-01(d) Regulation S-X, which requires interim financial statements included in quarterly reports on Form 10-Q to be reviewed by an independent public accountant using professional standards and procedures for conducting such reviews, as established by generally accepted auditing standards; 2. to update the financial statements and various disclosures throughout this quarterly report; and 3. to include the required certifications of the Company's Principal Executive Officer and Principal Financial and Accounting Officer as required by Sections 302 and 906 of the Sarbanes-Oxley Act. A full-text copy of the Form 10-Q/A is available for free at: https://is.gd/xRqwGn About Bulova Bulova Technologies Group, Inc. was originally incorporated in Wyoming in 1979 as "Tyrex Oil Company". During 2007, the Company divested itself of all assets and previous operations. During 2008, the Company filed for domestication to the State of Florida, and changed its name to Bulova Technologies Group, Inc. and changed its fiscal year from June 30 to September 30. Bulova reported a net loss of $5.26 million for the year ended Sept. 30, 2015, compared to a net loss of $3.76 million for the year ended Sept. 30, 2014. As of March 31, 2016, Bulova had $19.13 million in total assets, $41.64 million in total liabilities and a total shareholders' deficit of $22.51 million. C&J ENERGY: Asks Court to Jointly Administer Cases -------------------------------------------------- CJ Holding Co. and its debtor affiliates ask the Bankruptcy Court to direct procedural consolidation and joint administration of their Chapter 11 cases. They also requested that one file and one docket be maintained for all of the jointly administered cases under the case of CJ Holding Co., Case No. 16-33590. The Debtors told the Court that joint administration of their Chapter 11 cases will provide significant administrative convenience without harming the substantive rights of any party-in-interest. Since many of the motions, hearings, and orders in these Chapter 11 cases will affect each Debtor entity, the Debtors asserted that joint administration will reduce fees and costs by avoiding duplicative filings and objections. Moreover, the Debtor said that joint administration will allow the Office of the United States Trustee for the Southern District of Texas and all parties-in-interest to monitor these Chapter 11 cases with greater ease and efficiency. About C&J Energy C&J Energy Services is a leading provider of well construction, well completions, well support and other complementary oilfield services to oil and gas exploration and production companies. As one of the largest completion and production services companies in North America, C&J offers a full, vertically integrated suite of services involved in the entire life cycle of the well, including directional drilling, cementing, hydraulic fracturing, cased-hole wireline, coiled tubing, rig services, fluids management services and other special well site services. C&J operates in most of the major oil and natural gas producing regions of the continental United States and Western Canada. For additional information about C&J, please visit www.cjenergy.com. - See more at: http://investors.cjenergy.com/2016-07-20-C-J-Energy-Services-Commences-Voluntary-Reorganization-Under-Chapter-11-Of-The-US-Bankruptcy-Code#sthash.G43t4XZz.dpuf C&J Energy Services Ltd. and 14 of its subsidiaries each filed a voluntary petition under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of Texas on July 20, 2016. The Debtors' cases are pending before Judge David R Jones (Bankr. S.D. Tex. Proposed Lead Case No. 16-33590). The law firms Loeb & Loeb LLP, Kirkland & Ellis LLP serve as the Debtors' counsel. Fried, Frank, Harris, Shriver & Jacobson LLP acts as special corporate and tax counsel to the Debtors. Investment bank Evercore is the Debtors' financial advisor and AlixPartners is the Debtors' restructuring advisor. Ernst & Young Inc. is the proposed information officer for the Canadian proceedings. Donlin, Recano & Company, Inc. serves as the claims, noticing and balloting agent. C&J ENERGY: Extension of Schedules Filing Deadline Sought --------------------------------------------------------- CJ Holding Company and its debtor affiliates ask the Bankruptcy Court to extend the deadline by which they must file their schedules of assets and liabilities, schedules of current income and expenditures, schedules of executory contracts and unexpired leases, and statements of financial affairs by 30 days, for a total of 44 days from the Petition Date. The Debtors assert that the extensive amount of information that must be assembled and compiled, the multiple places where the information is located, and the hundreds of employee and professional hours required to complete the Schedules and Statements constitute good and sufficient cause for granting the requested extension of time. Although the Debtors, with the assistance of their professional advisors, are mobilizing their employees to work diligently and expeditiously on preparing the Schedules and Statements, they maintained that their resources are strained. "Given the amount of work entailed in completing the Schedules and Statements and the competing demands on the Debtors' employees and professionals to assist in efforts to stabilize business operations during the initial postpetition period, the Debtors likely will not be able to properly and accurately complete the Schedules and Statements within the required time period," said Stephen Thomas Schwarzbach Jr., Esq., at Kirkland & Ellis LLP, one of the Debtors' attorneys. In addition, the Debtors assert that the requirements to file a list of and to provide notice directly to equity holders should be waived as to Debtor C&J Energy Services, Ltd. "C&J Energy is a publicly-traded company with over 120 million common shares outstanding and recent average trading volumes of more than 4.4 million shares daily. It does not itself maintain a list of its equity security holders and therefore must obtain the names and addresses of its shareholders from a securities agent. Preparing and submitting such a list with last known addresses for each such equity security holder and sending notices to all such parties will be expensive and time consuming and will serve little or no beneficial purpose," said Mr. Schwarzbach. About C&J Energy C&J Energy Services is a leading provider of well construction, well completions, well support and other complementary oilfield services to oil and gas exploration and production companies. As one of the largest completion and production services companies in North America, C&J offers a full, vertically integrated suite of services involved in the entire life cycle of the well, including directional drilling, cementing, hydraulic fracturing, cased-hole wireline, coiled tubing, rig services, fluids management services and other special well site services. C&J operates in most of the major oil and natural gas producing regions of the continental United States and Western Canada. For additional information about C&J, please visit www.cjenergy.com. - See more at: http://investors.cjenergy.com/2016-07-20-C-J-Energy-Services-Commences-Voluntary-Reorganization-Under-Chapter-11-Of-The-US-Bankruptcy-Code#sthash.G43t4XZz.dpuf C&J Energy Services Ltd. and 14 of its subsidiaries each filed a voluntary petition under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of Texas on July 20, 2016. The Debtors' cases are pending before Judge David R Jones (Bankr. S.D. Tex. Proposed Lead Case No. 16-33590). The law firms Loeb & Loeb LLP, Kirkland & Ellis LLP serve as the Debtors' counsel. Fried, Frank, Harris, Shriver & Jacobson LLP acts as special corporate and tax counsel to the Debtors. Investment bank Evercore is the Debtors' financial advisor and AlixPartners is the Debtors' restructuring advisor. Ernst & Young Inc. is the proposed information officer for the Canadian proceedings. Donlin, Recano & Company, Inc. serves as the claims, noticing and balloting agent. C&J ENERGY: Proposes C&J Canada as Foreign Representative --------------------------------------------------------- CJ Holding Co. and its debtor affiliates seek the Bankruptcy Court's order authorizing C&J Energy Production Services-Canada Ltd. to act as the foreign representative on behalf of the Canadian Debtors' estates in the Canadian Proceeding. Debtors C&J Canada and Mobile Data Technologies Ltd. are corporations registered in Alberta, Canada. C&J Canada, as the proposed Foreign Representative, will shortly seek ancillary relief in Canada on behalf of the Canadian Debtors' estates in a court of proper jurisdiction in Alberta, Canada pursuant to the Companies' Creditors Arrangement Act (Canada) R.S.C. 1985, c. C-36. The purpose of the ancillary proceeding is to request that the Canadian Court recognize the Canadian Debtors' Chapter 11 cases as "foreign main proceedings" under the applicable provisions of the CCAA to, among other things, protect the Debtors' assets and operations in Canada. To commence the Canadian Proceeding, C&J Canada requires authority to act as the "foreign representative" on behalf of the Canadian Debtors' estates. If the order is granted, C&J Canada will be able to file the order with the Canadian Court as the instrument authorizing C&J Canada to act as the Foreign Representative pursuant to section 46 of the CCAA. "Authorizing C&J Canada to act as the Foreign Representative on behalf of the Canadian Debtors' estates in the Canadian Proceeding will allow for coordination between these chapter 11 cases and the Canadian Proceeding, and provide an effective mechanism to protect and maximize the value of the Canadian Debtors' assets and estates," according to Stephen Thomas Schwarzbach Jr., Esq., at Kirkland & Ellis LLP, one of the Debtors' attorneys. About C&J Energy C&J Energy Services is a leading provider of well construction, well completions, well support and other complementary oilfield services to oil and gas exploration and production companies. As one of the largest completion and production services companies in North America, C&J offers a full, vertically integrated suite of services involved in the entire life cycle of the well, including directional drilling, cementing, hydraulic fracturing, cased-hole wireline, coiled tubing, rig services, fluids management services and other special well site services. C&J operates in most of the major oil and natural gas producing regions of the continental United States and Western Canada. For additional information about C&J, please visit www.cjenergy.com. - See more at: http://investors.cjenergy.com/2016-07-20-C-J-Energy-Services-Commences-Voluntary-Reorganization-Under-Chapter-11-Of-The-US-Bankruptcy-Code#sthash.G43t4XZz.dpuf C&J Energy Services Ltd. and 14 of its subsidiaries each filed a voluntary petition under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of Texas on July 20, 2016. The Debtors' cases are pending before Judge David R Jones (Bankr. S.D. Tex. Proposed Lead Case No. 16-33590). The law firms Loeb & Loeb LLP, Kirkland & Ellis LLP serve as the Debtors' counsel. Fried, Frank, Harris, Shriver & Jacobson LLP acts as special corporate and tax counsel to the Debtors. Investment bank Evercore is the Debtors' financial advisor and AlixPartners is the Debtors' restructuring advisor. Ernst & Young Inc. is the proposed information officer for the Canadian proceedings. Donlin, Recano & Company, Inc. serves as the claims, noticing and balloting agent. CAESARS ENTERTAINMENT: China's Giant Said to Lead Bidders for Unit ------------------------------------------------------------------ The American Bankruptcy Institute, citing Christopher Palmeri and Jonathan Browning of Reuters, reported that a consortium including China's Giant Interactive Group, backed by billionaire Shi Yuzhu, is in talks to acquire Caesars Entertainment Corp.'s online game unit for more than $4 billion, according to people familiar with the matter. According to the report, the Giant-led group has emerged as the leading contender for the business after an auction process, said one of the people, asking not to be identified because the matter is private. Reuters reported earlier that the Giant consortium is in advanced talks to acquire the unit and has been granted a short period for exclusive negotiations, citing unidentified people, the report related. Caesars Interactive is one of the largest players in the market for casino-style games on Facebook, with titles such as Slotomania and Bingo Blitz, the report further related. The business is projected to generate earnings before interest, taxes, depreciation and amortization of more than $360 million this year, according to one of the people, the report said. That's an increase of at least 27 percent from the $282.7 million ebitda reported for last year, the report noted, citing a filing. Any sale would not include the World Series of Poker, which Caesars Interactive also owns, one of the people said, the report added. 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. * * * 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). CANEJAS SE: Creditors to Get Full Payment Under Plan ---------------------------------------------------- Canejas S.E. proposes to pay all its creditors in full, according to a Chapter 11 plan of reorganization it filed with the U.S. Bankruptcy Court for the District of Puerto Rico. The restructuring plan filed on July 19 provides for a 100% payment to all creditors of Canejas, including its general unsecured creditors in Class 5 which, together, assert $79,590 in claims. The proposed plan will be funded through Canejas' assets, surrendering to Banco Popular de Puerto Rico the "Edificio Mars" located in Guaynabo, Puerto Rico, which guarantees its debt to the bank. A copy of the plan outline is available for free at https://is.gd/wWzBOZ About Canejas S.E. Canejas, S.E., a single asset real estate, filed a Chapter 11 bankruptcy petition (Bankr. D. P.R. Case No. 16-02644) on April 4, 2016. The petition was signed by Diego Chevere as managing partner. The Debtor listed total assets of $11.1 million and total debts of $8.55 million. C. Conde & Assoc. represents the Debtor as counsel. Judge Mildred Caban Flores is assigned to the case. CCH JOHN EAGAN: Court to Take Up Plan Outline on August 24 ---------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of Florida is set to hold a hearing on August 24, at 1:30 p.m., to consider the disclosure statement detailing the Chapter 11 plan of CCH John Eagan II Homes, L.P. The hearing will take place at the U.S. Bankruptcy Court, Courtroom B, 8th Floor, 1515 North Flagler Drive, West Palm Beach, Florida. Objections are due by August 17. About CCH John Eagan Headquartered in Palm Beach Gardens, Florida, CCH John Eagan II Homes, L.P., owns and operates a 180 unit multifamily apartment complex in Atlanta, Georgia commonly known as Magnolia Park Apartments Phase II. It filed for Chapter 11 bankruptcy protection (Bankr. S.D. Fla. Case No. 15-31082) on Dec. 1, 2015, and is represented by Eric A. Rosen, Esq., at Fowler White Burnett, P.A. At the time of the filing, the Debtor estimated its assets at between $1 million and $10 million and liabilities at between $10 million and $50 million. Judge Erik P. Kimball presides over the case. The petition was signed by Yashpal Kakkar, managing member, CCH John Eagan II Partners, LLC, GP. CERTIFIED ENERGY LABS: U.S. Trustee Unable to Appoint Committee --------------------------------------------------------------- The Office of the U.S. Trustee disclosed in a court filing that no official committee of unsecured creditors has been appointed in the Chapter 11 case of Certified Energy Labs, LLC. 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. CHESTNUT STREET: Hires Berkshire Hathaway as Real Estate Broker --------------------------------------------------------------- Chestnut Street Townhouse, LLC, seeks authority from the U.S. Bankruptcy Court for the Middle District of Pennsylvania to employ Berkshire Hathaway HomeServices Homesale Realty as real estate broker to the Debtor. Chestnut Street requires Berkshire Hathaway to sell the real estate identified as 17 South Chestnut Street and 129 South Chestnut Street, Mechanicsburg, Cumberland County, Pennsylvania. Berkshire Hathaway will be paid a commission of 4% or $2,500, whichever is greater, from sale proceeds. Berkshire Hathaway has also been retained by Debtor's Principal, P. John Sopensky, to sell various properties in the P. John Sopensky Chapter 11 bankruptcy case No. 1:14-bk-04823. Berkshire Hathaway has agreed to share 15% of its commission from the sale of the Debtor's properties with Sperry Van Ness Imperial Realty, Debtor's court appointed realtor with regard to the sale of various other properties. Sperry Van Ness Imperial Realty is also the Court appointed realtor for 831 Chestnut LP and 1300 Market LLC, which entities also have P. John Sopensky as their principal and have Chapter 11 bankruptcy cases with Nos. 1-14-bk-4814 and 1-14-bk-4802, respectively. Jesse Gantt, agent with Berkshire Hathaway HomeServices Homesale Realty, assured the Court that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtors and their estates. Berkshire Hathaway can be reached at: Jesse Gantt BERKSHIRE HATHAWAY HOMESERVICES HOMESALE REALTY 3435 Market St. Camp Hill, PA 17011 Tel: (717) 761-7900 About Chestnut Street Chestnut Street Investments, Inc., filed a Chapter 11 bankruptcy petition (Bankr. D. Mass. Case No. 13-12448) on April 28, 2013. The Debtor is represented by Carmenelisa Perez-Kudzma, Esq. CHINA FISHERY: Seeks to Hire Meyer Suozzi as Legal Counsel ---------------------------------------------------------- China Fishery Group Limited (Cayman) seeks approval from the U.S. Bankruptcy Court for the Southern District of New York to hire Meyer, Suozzi, English & Klein, P.C. as its legal counsel. The firm will provide these services in connection with the Chapter 11 cases of China Fishery and its affiliates: (a) advising the Debtors about their powers and Duties and the conduct of the cases; (b) attending meetings and negotiating with representatives of creditors and other parties; (c) advising the Debtors with respect to actions necessary to protect their estates; (d) preparing legal papers; (e) representing the Debtors in connection with obtaining any required authorization to use cash collateral and post- petition financing; (f) advising the Debtors in connection with any potential sales of assets; (g) appearing before the court; and (h) taking any necessary action on behalf of the Debtors to negotiate, prepare and obtain approval of a disclosure statement and confirmation of a chapter 11 plan. The firm's professionals and their hourly rates are: Partners $250 - $550 Of Counsel $275 - $550 Associates $200 - $400 Paraprofessionals $100 - $135 Thomas Slome, Esq., at Meyer, disclosed in a court filing that the firm is a "disinterested person" as defined in section 101(14) of the Bankruptcy Code. In response to the request for additional information set forth in Paragraph D.1 of the U.S. Trustee Guidelines, Meyer disclosed that the firm and the Debtors have not agreed to any variations from, or alternatives to, its standard billing arrangements for the engagement. Meyer further disclosed that the firm and the Debtors expect to develop a prospective budget and staffing plan. The firm can be reached through: Howard B. Kleinberg, Esq. Edward J. LoBello, Esq. Jil Mazer-Marino, Esq. Meyer, Suozzi, English & Klein, P.C. 1350 Broadway, Suite 501 New York, NY 10018 Tel: (212) 239-4999 Email: hkleinberg@msek.com Email: elobello@msek.com Email: jmazermarino@msek.com About China Fishery Group China Fishery Group Limited (Cayman) and its affiliates sought protection under Chapter 11 of the Bankruptcy Code (Bankr. S. D. N.Y. Case No. 16-11895) on June 30, 2016. The petition was signed by Ng Puay Yee, chief executive officer. The case is assigned to Judge James L. Garrity Jr. At the time of the filing, the Debtor estimated its assets at $500 million to $1 billion and debts at $10 million to $50 million. CHINA FISHERY: Taps Goldin Associates as Financial Advisor ---------------------------------------------------------- China Fishery Group Limited (Cayman) seeks approval from the U.S. Bankruptcy Court for the Southern District of New York to hire Goldin Associates, LLC as financial advisor. The firm will provide these services in connection with the Chapter 11 cases of China Fishery and its affiliates: (a) prepare financial models for underlying assets and assessment of cash requirements; (b) prepare valuation and financial analysis of underlying assets; (c) support litigation by providing expert testimony and assistance with document requests; (d) provide expert testimony on valuation or plan feasibility (e) conduct a site visit of operating entities; (f) prepare financial analysis on recovery alternatives to all stakeholders; (g) meet with creditors and other stakeholders; (h) assist in evaluating post-petition cash requirements for the Debtors; (i) assist in creditor negotiations; and (j) assist in the development and negotiation of a plan of reorganization. The firm's professionals and their hourly rates are: Senior Managing Director $900 - $950 Managing Director/Sr. Advisor $700 - $900 Director $600 - $700 Vice-President $500 - $600 Associate $350 - $500 Analyst $250 - $350 David Prager, managing director of Goldin Associates, disclosed in a court filing that the firm is a "disinterested person" as defined in section 101(14) of the Bankruptcy Code. The firm can be reached through: David W. Prager Goldin Associates, LLC 350 Fifth Avenue The Empire State Building New York, New York 10118 Phone: (212) 593-2255 Fax: (212) 888-2841 About China Fishery Group China Fishery Group Limited (Cayman) and its affiliates sought protection under Chapter 11 of the Bankruptcy Code (Bankr. S. D. N.Y. Case No. 16-11895) on June 30, 2016. The petition was signed by Ng Puay Yee, chief executive officer. The case is assigned to Judge James L. Garrity Jr. At the time of the filing, the Debtor estimated its assets at $500 million to $1 billion and debts at $10 million to $50 million. CHINA FISHERY: Taps RSR Consulting as Restructuring Consultant -------------------------------------------------------------- China Fishery Group Limited (Cayman) seeks approval from the U.S. Bankruptcy Court for the Southern District of New York to hire RSR Consulting LLC as restructuring consultant. The firm will provide these services in connection with the Chapter 11 cases of China Fishery and its affiliates: (a) act as a liaison and coordinate information flow and efforts among the management, financial advisors, creditors and their advisors, and the U.S. Trustee's office (b) assist the management in the coordination and production of information; (c) attend court hearings and Section 341 meetings with creditors, if required; (d) assist the Debtors in the preparation of periodic reporting packages that may be required for their creditors; (e) provide expert testimony, if required; and (f) review restructuring alternatives and projections provided by the Debtors' professionals in connection with putting forth plans to the constituents and the court. The hourly rate for the firm's managing directors is $390 while the hourly rate for its managers and consultants ranges from $250 to $375. Robert Rosenfeld, a member of RSR Consulting, disclosed in a court filing that the firm is a "disinterested person" as defined in section 101(14) of the Bankruptcy Code. The firm can be reached through: Robert Rosenfeld RSR Consulting LLC 1330 Avenue of the Americas, Suite 23A New York, New York 10019 Phone: (212) 658-0300 Fax: (212) 658-0347 About China Fishery Group China Fishery Group Limited (Cayman) and its affiliates sought protection under Chapter 11 of the Bankruptcy Code (Bankr. S. D. N.Y. Case No. 16-11895) on June 30, 2016. The petition was signed by Ng Puay Yee, chief executive officer. The case is assigned to Judge James L. Garrity Jr. At the time of the filing, the Debtor estimated its assets at $500 million to $1 billion and debts at $10 million to $50 million. CHRISTINE GOOD: Exit Plan to Pay $10K to Unsecured Creditors ------------------------------------------------------------ Christine Good on July 19 filed with the U.S. Bankruptcy Court for the Southern District of Florida a plan to exit Chapter 11 protection. Under the proposed restructuring plan, general unsecured creditors, which hold $419,620 in claims, will share pro rata in a total distribution of $10,000 to be paid over five years. The Debtor proposes to make 20 quarterly payments to general unsecured creditors. The funds to make the initial payments will come from the Debtor's bank account. The Debtor will fund the cash payments pursuant to the plan through her income from employment or investment properties. A copy of the disclosure statement detailing the plan is available for free at The Debtor is represented by: Chad T. Van Horn, Esq. Van Horn Law Group, P.A. 330 N. Andrews Ave., Suite 450 Fort Lauderdale, Florida 33301 Phone: (954) 765-3166 Fax: (954) 756-7103 Email: Chad@cvhlawgroup.com About Christine Good Christine Good sought protection under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Fla. Case No. 15-25289) on August 24, 2015. CINEVIA CORPORATION: Wants to Use $2,350 for Monthly Expenses ------------------------------------------------------------- Cinevia Corporation asks the U.S. Bankruptcy Court for the District of Puerto Rico to modify its Order prohibiting the use of cash collateral. The Debtor seeks to use the amount of $2,350 on a monthly basis, to cover the following monthly costs: (a) $650 for maintenance and cleaning of its property, including the building and the lot; (b) $500 for the preparation of Monthly Operating Reports; (c) $800 for handyman services; and (d) $400 for maintenance materials. The Debtor tells the Court that it is only asking to use a small amount of the cash collateral and that it will not use the remaining cash collateral as a good will gesture towards the settlement and fast resolution of the case. A full-text copy of the Debtor's Motion, dated July 21, 2016, is available at https://is.gd/d03hwR About Cinevia Corporation Cinevia Corporation filed a chapter 11 petition (Bankr. D.P.R. Case No. 15-03407) on May 5, 2015. The petition was signed by Miguel Pagan, President. The Debtor is represented by Jose M. Prieto Carballo, Esq., at JPC Law Office. The Debtor estimated its assets at less than $500,000 and its liabilities at less than $1 million at the time of the filing. CITADEL WATFORD: Committee Taps Shaw Fishman as Legal Counsel ------------------------------------------------------------- The official committee of unsecured creditors of Citadel Watford City Disposal Partners, LP seeks approval from the U.S. Bankruptcy Court for the District of Delaware to hire Shaw Fishman Glantz & Towbin LLC. The firm will serve as legal counsel for the committee in connection with the Chapter 11 cases of Citadel and its affiliates. Shaw Fishman will: (a) provide legal advice with respect to the committee's powers and duties; (b) assist the committee in investigating the conduct and financial condition of the Debtors, and other matters relevant to their cases; (c) participate in the formulation of a Chapter 11 plan; (d) provide legal advice with respect to any disclosure statement and plan filed in the cases; (e) prepare legal papers and appear in court; and (f) assist the committee in requesting the appointment of a trustee or examiner, should such action be necessary. The firm's professionals and their hourly rates are: Members $390 - $725 Of Counsel $395 - $475 Associates $250 - $350 Paralegals $145 - $210 Shaw Fishman does not hold or represent any interest adverse to the Debtors, according to court filings. The firm can be reached through: Thomas M. Horan, Esq. Shaw Fishman Glantz & Towbin LLC 919 N Market Street, Suite 600 Wilmington, DE 19801 Phone: 302-480-9412 Email: thoran@shawfishman.com The Debtors can be reached through their counsel: Michael Busenkell, Esq. Gellert Scali Busenkell & Brown, LLC 1201 N. Orange Street, Suite 300 Wilmington, DE 19801 Tel: (302) 425-5800 Fax: (302) 425-5814 Email: mbusenkell@gsbblaw.com Email: shumiston@gsbblaw.com About Citadel Watford Citadel Watford City Disposal Partners, L.P., et al., were engaged, principally, in providing fluid management services to America's oil and gas producers including the safe, controlled disposal of flowback and produced water. Citadel Watford City Disposal Partners, LP and its affiliates sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D. Del. Lead Case No. 15-11323) on June 19, 2015. The Debtor is represented by Michael Busenkell, Esq., at Gellert Scali Busenkell & Brown, LLC. On July 20, 2015, the Office of the U.S. Trustee appointed an official committee of unsecured creditors in the Debtors' cases. CJ HOLDING: Moody's Cuts PDR to D-PD on Chap. 11 Filing ------------------------------------------------------- Moody's Investors Service downgraded CJ Holding Co.'s (CJHC) Probability of Default Rating (PDR) to D-PD from Ca-PD, following the company's announcement that it had filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Southern District of Texas, Houston Division on July 20, 2016. Concurrently, Moody's affirmed CJHC's Corporate Family Rating (CFR) of Ca and Senior Secured rating of Ca. The SGL-4 Speculative Grade Liquidity (SGL) was also affirmed. The rating outlook remains negative. Issuer: CJ Holding Co. Downgrades: -- Probability of Default Rating, Downgraded to D-PD from Ca-PD Affirmations: -- Corporate Family Rating, Affirmed Ca -- Speculative Grade Liquidity Rating, Affirmed SGL-4 -- Senior Secured Term Loan due 2020, Affirmed Ca (LGD3) -- Senior Secured Term Loan due 2022, Affirmed Ca (LGD3) -- Senior Secured Revolver due 2020, Affirmed Ca (LGD3) Outlook Actions: -- Outlook remains negative RATINGS RATIONALE The downgrade of CJHC's PDR to D-PD is a result of the bankruptcy filing. CJHC's other ratings have been affirmed, which reflects Moody's view on the potential overall family recovery. Shortly following this rating action, Moody's will withdraw all ratings for the company consistent with Moody's practice for companies operating under the purview of the bankruptcy courts wherein information flow typically becomes much more limited. CJHC is a wholly-owned subsidiary of C&J Energy Services, Ltd. which is a Bermuda incorporated and Houston, Texas-based diversified oilfield service company providing completion and production services to upstream oil and gas companies in North America. CLEVELAND BIOLABS: Gets Non-Compliance Notice from NASDAQ --------------------------------------------------------- Cleveland BioLabs, Inc., received formal notification from the Stock Market, which notification was subsequently revised on July 15, 2016, regarding its current non-compliance with the NASDAQ Listing Rules as a result of the resignations of James Antal and Richard McGowan from the Company's Board of Directors. Messrs. Antal and McGowan each served on the audit committee of the Board. The Company informed NASDAQ about the resignations on July 12, 2016. Under NASDAQ Listing Rule 5605(c)(2)(A), the audit committee of the Board must be comprised of at least three independent directors. As of the effective time of the resignations of Messrs. Antal and McGowan, the audit committee of the Board will be comprised of one director who is independent under the NASDAQ Listing Rules. Under the terms of the Notice and NASDAQ Listing Rule 5810(c)(2), the Company has 45 calendar days from the date of the Notice to submit a plan to regain compliance. The Company currently anticipates submitting such a plan to NASDAQ or regaining compliance prior to the expiration of the 45-day period by appointing two new independent directors to the audit committee. If the Company is not granted an extension or is granted an extension but is unable to evidence compliance during the extension period, NASDAQ may issue a delisting determination. In the event of such a determination, the Company may appeal NASDAQ's determination to delist its securities, but there can be no assurance that NASDAQ would grant the Company's request for continued listing. About Cleveland BioLabs Cleveland BioLabs, Inc. (NASDAQ: CBLI) is a biopharmaceutical company developing novel approaches to activate the immune system and address serious unmet medical needs. The Buffalo, New York-based company's proprietary platform of toll-like immune receptor activators has applications in radiation mitigation, oncology immunotherapy and vaccines. Cleveland reported a net loss of $13.04 million on $2.70 million of grants and contracts revenues for the year ended Dec. 31, 2015, compared to net income of $35,366 on $3.70 million of grants and contracts revenues for the year ended Dec. 31, 2014. As of March 31, 2016, Cleveland Biolabs had $19.80 million in total assets, $4.85 million in total liabilities and $14.94 million in total stockholders' equity. COMMUNITY VISION: Cash Collateral Use on Interim Basis OK --------------------------------------------------------- Judge Michael E. Ridgway of the U.S. Bankruptcy Court for the District of Minnesota authorized Community Vision Development Programs, LLC to use cash collateral on an interim basis. The Debtor was authorized to grant the Internal Revenue Service a replacement lien on all of the Debtor's assets to the extent of post-petition cash collateral use. The replacement lien will have the same priority, dignity and effect as the pre-petition lien held by the IRS. Recoveries on account of any of the Debtor's bankruptcy causes of action are excluded from the replacement lien. The final hearing on the Debtor's Cash Collateral Motion is scheduled on August 17, 2016 at 10:30 a.m. A full-text copy of the Order, dated July 21, 2016, is available at https://is.gd/LTDCPz The case is In re Community Vision Development Programs, LLC (Bankr. D. Minn. Case No. 16-42109). CONDO 64 LLC: Can Use Cash Collateral Through September 22 ---------------------------------------------------------- Judge Ann M. Nevins of the U.S. Bankruptcy Court for the District of Connecticut authorized Condo 64, LLC to use cash collateral, beginning on July 24, 2016 until September 22, 2016. The Debtor is indebted to secured creditor American Eagle Financial Credit Union in the amount of $2,489,100.90, with accrued interest of $276,423, together with late charges, attorney's fees and such other amounts as may be outstanding under the Loan Documents. Judge Nevins authorized the Debtor to use cash collateral in the ordinary course of its business up to the maximum amount of $102,991, for the payment of expenses listed in the approved Budget. The Budget provides for total expenses in the amount of $51,575 for the period July 23, 2016 through August 23, 2016; and $51,416 for the period August 23, 2016, through September 23, 2016. Judge Nevins granted American Eagle Financial Credit Union replacement liens in all the Debtor's pre-petition and after-acquired property. Judge Nevins authorized the Debtor to pay American Eagle Financial Credit Union the amount of $7,500 per month, for 60 days, as additional adequate protection. Judge Nevins held that the liens of American Eagle Financial Credit Union shall be subject to and subordinate to, among others, the allowed fees and expenses of the Debtor's retained counsel, Halloran & Sage, LLP and Kevin Mason, Esq., in an amount not to exceed $50,000, to be paid from proceeds of Secured Creditor’s collateral in the event allowed administrative fees of Debtor’s Counsel are not paid or available from cash on hand from the Debtor’s operations, any sale or refinance of the Debtor’s property. A final hearing on the Debtor's use of Cash Collateral is scheduled on September 15, 2016 at 10:00 a.m. A full-text copy of the Order, dated July 22, 2016, is available at https://is.gd/tU2M4J About Condo 64, LLC. Condo 64, LLC filed a chapter 11 petition (Bankr. D. Conn. Case No. 15-21797) on October 16, 2015. The petition was signed by Oliver C. Pinkard, managing member. The Debtor is represented by Kaitlin M. Humble, Esq. and Craig I. Lifland, Esq., at Halloran & Sage LLP. The case is assigned to Judge Ann M. Nevins. The Debtor disclosed total assets at $4.6 million and total liabilities at $3.1 million at the time of the filing. CONGREGATION OF UNITY: Can Use Cash Collateral Until Oct. 4 ----------------------------------------------------------- Judge George R. Hodges of the U.S. Bankruptcy Court for the Western District of North Carolina authorized The Congregation of Unity, Inc. to use cash collateral on an interim basis, until October 4, 2016. Entegra Bank asserts a security interest in and lien against substantially all of the Debtor's real property assets, including rents. Judge Hodges authorized the Debtor to use cash collateral only for ordinary and necessary business expenses, consistent with the specific items and amounts contained in the approved Budget. The Budget provides for total expenses in the amount of $13,681 for the month of July; $7,785 for the month of August; and $8,485 for the month of September. The expenses listed in the Budget include, among others, insurance, utilities and legal fees. Judge Hodges granted Entegra Bank a valid, enforceable, perfected and continuing security interest in, and liens upon all post-petition assets of the Debtor, to the same nature, extent and validity as the liens and encumbrances of Entegra Bank that attached to the Debtor's assets pre-petition. A final hearing on the use of Cash Collateral is scheduled on October 4, 2016 at 10:00 a.m. A full-text copy of the Order, dated July 21, 2016, is available at https://is.gd/NN5n4f Entegra Bank is represented by: Mark A. Pinkston, Esq. THE VAN WINKLE LAW FIRM 11 North Market St. Asheville, NC 28801 Telephone: (828) 475-8855 Email: mpinkston@vwlawfirm.com About The Congregation of Unity, Inc. Headquartered in Edneyville, North Carolina, The Congregation of Unity, Inc., is a nonprofit church entity. The Debtor filed for Chapter 11 bankruptcy protection (Bankr. W.D. N.C. Case No. 16-10260) on June 29, 2016, listing $1.72 million in total assets and $579,317 in total liabilities. The petition was signed by Carol Brawley, director. Judge George R. Hodges presides over the case. D. Rodney Kight, Jr., Esq., at Kight Law Office serves as the Debtor's bankruptcy counsel. CONNTECH PRODUCTS: Can Use TD Bank Cash Collateral Until July 30 ---------------------------------------------------------------- Judge Julie A. Manning of the U.S. Bankruptcy Court for the District of Connecticut authorized ConnTech Products Corporation to use the cash collateral of secured creditor TD Bank on an interim basis, through July 30, 2016. Judge Manning acknowledged that the use of Cash Collateral by the Debtor on an interim basis, pending a final hearing and determination by the Court, is necessary to prevent irreparable harm, in that without such use the Debtor would be unable to meet payroll obligations, meet current operating expenses, and sustain business operations. The approved Budget covers the period beginning July 10, 2016 through July 23, 2016. It provides for total projected expenses in the amount of $239,150.69. Judge Manning granted TD Bank replacement and/or substitute liens in all post-petition assets of the Debtor and proceeds thereof, and such replacement liens shall have the same validity, extent, and priority that the Lender possessed as to said liens on the Petition Date. TD Bank's liens and replacement liens are subject and subordinate to a carve-out of such liens for amounts payable by the Debtor for: (i) fees of the United States trustee; (ii) wages due the Debtors' employees; and (iii) court approved fees of the Debtors' professionals and counsel to the Official Committee of Unsecured Creditors. A final hearing on the Debtor's Motion is scheduled on July 28, 2016 at 10:00 a.m. A full-text copy of the Order, dated July 22, 2016, is available at https://is.gd/mWGJfM About ConnTech Products Corporation ConnTech Products Corporation filed a voluntary Chapter 11 petition (Bankr. D. Conn. Case No. 15-30397) on March 19, 2015. The petition was signed by Mark S. Fenney, president. The Hon. Julie A. Manning oversees the case. Neil Crane, Esq., at the Law Offices of Neil Crane, LLC, serves as counsel to the Debtor. The Debtor estimated assets of $1 million to $10 million and liabilities of $500,000 to $1 million. * * * On March 21, 2016, the Debtor filed a Disclosure Statement. In the Disclosure Statement the Debtor has offered three alternatives. Either the Debtor will obtain financing and continue operating; or the Debtor will sell its business as a going concern; or the Debtor will partially sell its business. In the Disclosure Statement the Debtor proposed paying a dividend of 30% to unsecured creditors over the course of five years. The Debtor hired a business broker, Capital Recovery Group, LLC to sell the Debtor's business as a going concern. CORELOGIC INC: Moody's Cuts Senior Secured Ratings to Ba2 --------------------------------------------------------- Moody's Investors Service affirmed CoreLogic, Inc.'s Ba2 corporate family rating, Ba2-PD probability of default rating, B1 senior debentures rating, and SGL-1 speculative grade liquidity ("SGL") rating. In addition, Moody's downgraded the senior secured revolving credit facility and term loan ratings to Ba2 from Ba1. The outlook remains stable. RATINGS RATIONALE The downgrade of the senior secured revolving credit facility and term loan ratings reflects the higher relative proportion of senior secured debt in the capital structure following the redemption of the 7.25% senior unsecured notes due June 2021 ("2021 Notes") using net proceeds from an incremental term loan borrowing. With the upsizing of the term loan and repayment of the 2021 notes, the debt structure consists primarily of senior secured debt (about $1.3 billion) with only a small remaining unsecured piece ($60 million 7.55% senior debentures due April 2028). The Ba2 CFR reflects CoreLogic's strong market position within the mortgage settlement services market built on long-standing relationships with many of the largest financial institutions. This profile leads to generally predictable revenue and cash flow as reflected in the solid financial performance through the last economic cycle and during the past several years amidst the steep drop in mortgage originations after several years of strong refinancing activity. Moody's expects mortgage volumes to decline through 2017 as refinancing activity continues to wane, partly offset by modest recovery in home purchases. Despite the lingering industry headwinds, the stable outlook reflects Moody's expectation of low single digit organic revenue growth through 2017 with mid-teens percentage operating margins driven by the strength of CoreLogic's data analytics business, which has benefited from increased credit and risk management-related activity during the housing downturn, and market share gains arising from the mortgage lending/servicing industry trend towards outsourcing. Moody's also expect that financial policies will be disciplined and expect financial leverage to improve to about 3x over the next year. The ratings could be upgraded if CoreLogic demonstrates organic revenue and earnings growth while improving leverage such that free cash flow to debt exceeds 15%, debt to EBITDA improves to the mid 2 times level, and operating margins are sustained above 20%. The ratings could be downgraded if CoreLogic engages in significant share buyback or acquisition activity or experiences a decline in profitability such that adjusted debt to EBITDA remains above mid 3 times, or free cash flow to debt decreases to less than 10% for an extended period of time. Ratings affirmed: Corporate family rating -- Ba2 Probability of default rating -- Ba2-PD Senior debentures -- B1 (LGD 6) Speculative grade liquidity rating -- SGL-1 Ratings downgraded: Senior Secured Revolving credit facility -- Ba2 (LGD 3) from Ba1 (LGD 2) Senior Secured Term Loan A -- Ba2 (LGD 3) from Ba1 (LGD 2) Rating withdrawn: Senior unsecured notes -- Ba3 (LGD 5) The rating outlook is stable. CoreLogic, Inc., with projected annual revenues of $1.9 billion, is a leading provider of property and mortgage data and analytics, as well as loan processing services. CREATIVE FOODS: Has Until Sept. 6 to Use Cash Collateral -------------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of Illinois authorized Creative Foods, LLC to use cash collateral on an interim basis, until September 6, 2016. The Debtor was authorized to use cash collateral for the sole purpose of paying the ordinary and necessary expenses related to the Debtor's operation of its restaurant business, located at 1 Walker Avenue, Clarendon Hills, Illinois. The approved 30-day Budget provides for total payroll expenses in the amount of $41,900 and total overhead expenses in $73,734. The Budget estimates weekly fixed costs at $1,252.34. The Debtor is indebted to Ridgestone Bank in the amount of $331,804.29, plus attorney's fees, as of the Petition Date. The Debtor represented that in the absence of the use of Cash Collateral, the Debtor does not have sufficient available sources of working capital and financing to operate its business and maintain its property. It further represented that the use of Cash Collateral is necessary to avoid immediate and irreparable harm to the Debtor. The Court granted Ridgestone Bank replacement liens on all of the Debtor's assets. The replacement liens will be valid, enforceable and superior in right to any other lien created or arising unless Ridgestone Bank consents in writing or the Court orders otherwise. The Court directed the Debtor to pay Ridgestone Bank the amount of $1,387.50 on a monthly basis as additional adequate protection. A status hearing on the Debtor's use of Cash Collateral is scheduled on September 1, 2016 at 10:30 a.m. A full-text copy of the Order, dated July 21, 2016, is available at https://is.gd/5Vc9vW About Creative Foods, LLC. Creative Foods, LLC filed a chapter 11 petition (Bankr. N.D. Ill. Case No. 16-19927) on June 17, 2016. The petition was signed by Anthony Swigon, general manager - member. The Debtor is represented by David P. Lloyd, Esq., at David P. Lloyd, Ltd. The case is assigned to Judge Jack B. Schmetterer. The Debtor estimated assets at $0 to $50,000 and liabilities of $1 million to $10 million at the time of the filing. CRYSTAL SPOON: Wants Plan Filing Deadline Moved to Dec. 21 ---------------------------------------------------------- The Crystal Spoon asks the U.S. Bankruptcy Court for the Southern District of New York to extend until Dec. 21, 2016, its exclusive period within which to file a Chapter 11 small business plan and solicit acceptances. A hearing on the Debtor's request is set for Aug. 3, 2016, at 12:00 noon. The Debtor's exclusive period to file a plan expires on Aug. 22, 2016. The Debtor and its principal has devoted a great deal of time and energy to this Chapter 11 proceeding and business operations. The Debtor has been exploring formulating a Chapter 11 plan of reorganization which will be funded primarily through profits from operations and an infusion of capital from a third party investor or the proceeds of a loan. The Debtor hopes to propose a viable plan by Dec. 21, 2016, the "300 day" deadline imposed on small business cases. The Debtor is current with all post-petition financial obligations including those due to the office of the Office of the U.S. Trustee. The Debtor is two months behind in filing monthly operating reports, but intends to catch up. As reflected in its sole operating report, the Debtor has been profitable during its Chapter 11 case. Moreover, it has projected that operations will be profitable in the upcoming months based primarily upon the increase of business during the spring and summer seasons. The Debtor believes that its creditors will cooperate, including the landlord. In the event that the Court declines to grant the extension requested, it is submitted that the Debtor will be left in a potentially vulnerable situation. The Debtor's counsel can be reached at: PENACHIO MALARA LLP Anne Penachio, Esq. 235 Main Street White Plains, New York 10601 Tel: (914) 946-2889 E-mail: apenachio@pmlawllp.com Headquartered in Elmsford, New York, The Crystal Spoon aka Top Chef Meals is in the business primarily of distribution of prepared meals, co-packing for other suppliers and catering. The Debtor filed for Chapter 11 bankruptcy protection (Bankr. S.D.N.Y. Case No. 16-22238) on Feb. 25, 2016, estimating its assets and liabilities at between $1 million and $10 million. The petition was signed by Paul Ghiron, president. Anne J. Penachio, Esq., at Penachio Malara LLP, serves as the Debtor's bankruptcy counsel. CULTURE PROJECT: Wants to Use HSBC Cash Collateral -------------------------------------------------- The Culture Project, Inc. asks the U.S. Bankruptcy Court for the Southern District of New York for authorization to use cash collateral. The Debtor has a secured line of credit with HSBC in the amount of $287,000. It relates that it has contacted HSBC to negotiate a stipulation approving its use of Cash Collateral. The Debtor further relates that instead of working with the Debtor, HSBC, without notice, froze the Debtor's pre-petition bank account and has not provided the Debtor with the contact information of its counsel. The Debtor says that it currently has insufficient cash, absent use of HSBC's Cash Collateral, to meet its ongoing obligations necessary to maintain and operate its business. The Debtor further says that the use of Cash Collateral is necessary in order for the Debtor to pay for ordinary operating expenses, including its payroll. The Debtor proposes to grant HSBC a replacement lien in all of the Debtor's existing and after-acquired real and personal property and assets. The Debtor also proposes to grant HSBC a superpriority administrative expense claim, payable ahead of all other costs of administration, and all accrued and unpaid claims for unpaid fees, costs and expenses incurred at any time, payable to estate professionals retained by the Debtor, with the approval of the Court. The Debtor believes that it will be able to make monthly adequate protection payments to HSBC beginning in late September or early October 2016. A full-text copy of the Debtor's Motion, dated July 21, 2016, is available at https://is.gd/OdDqgc About The Culture Project, Inc. The Culture Project, Inc. filed a chapter 11 petition (Bankr. S.D.N.Y. Case No. 16-11874) on June 29, 2016. The Petition was signed by Allan Buchman, president. The Debtor is represented by Joel Shafferman, Esq., at Shafferman & Feldman, LLP. The Debtor estimated assets at $0 to $50,000 and liabilities at $500,001 to $1 million. CUSTOM STONE: Taps Roussos Glanzer as Legal Counsel --------------------------------------------------- Custom Stone Company, Inc. seeks approval from the U.S. Bankruptcy Court for the Eastern District of Virginia to hire Roussos, Glanzer & Barnhart, P.L.C. as its legal counsel. The firm will provide these services in connection with the Debtor's Chapter 11 case: (a) prepare legal papers required to administer the Debtor's estate; (b) consult with and advise the Debtor in the reorganization of its financial affairs or the liquidation of its assets; (c) represent the Debtor in adversary proceedings and in all contested matters; (d) advise the Debtor concerning the administration of its estate, its rights and remedies with respect to its assets, and claims held by its creditors; (e) investigate the existence of other assets of the estate; and (f) prepare a plan of reorganization for the Debtor, negotiate with creditors, and take the necessary actions to obtain confirmation of the plan. The firm's professionals and their hourly rates are: Robert V. Roussos $390 Kelly M. Barnhart $325 Paralegal $90 Mr. Roussos disclosed in a court filing that the firm is a "disinterested person" as defined in section 101(14) of the Bankruptcy Code. The firm can be reached through: Robert V. Roussos, Esq. Kelly M. Barnhart, Esq. Roussos, Glanzer & Barnhart, PLC 580 E. Main St., Ste. 300 Norfolk, VA 23510 Phone: (757) 622-9005 Fax: (757) 624-9257 Email: roussos@rgblawfirm.com barnhart@rgblawfirm.com About Custom Stone Custom Stone Company, Inc. sought protection under Chapter 11 of the Bankruptcy Code (Bankr. E. D. Va. Case No. 16-72508) on July 18, 2016. The petition was signed by Kenneth R. Sims, president. The case is assigned to Judge Stephen C. St. John. At the time of the filing, the Debtor estimated its assets and debts at $1 million to $10 million. D&H MACHINE SERVICE: Secured Credit from Brian Hillard Sought ------------------------------------------------------------- D&H Machine Services, Inc. asks the U.S. Bankruptcy Court for the Eastern District of Tennessee for authorization to obtain secured credit. The Debtor anticipates that in the fall of 2016, it will have a substantial peak in demand for production of machinery. The Debtor relates that these machinery orders are placed on a per item order and require the Debtor to purchase materials and invest labor in the product prior to invoicing the customer. The Debtor further relates that it already has two clients, which are estimated to require $20,000 for materials in August. The Debtor tells the Court that it will need a line-of-credit of approximately $60,000 and proposes to obtain credit from its principal, Brian Hillard, as an administrative expense with a lien on all assets of the Debtor including equipment, inventory, work-in-process, and accounts receivable, junior to any preexisting liens. The Debtor further tells the Court that the loan is without interest for the first six months, and then would accrue at 5% per annum. The Debtor knows of no undisputed lien but acknowledges that creditor, Aqua-Chem has a potential lien claim of approximately $40,000 with regard to preexisting attachment of Accounts Receivable. A hearing on the Debtor's Motion is scheduled on August 4, 2016 at 10:00 a.m. A full-text copy of the Debtor's Motion, dated July 22, 2016, is available at https://is.gd/shqQgZ D&H Machine Service, Inc. is represented by: Dean B. Farmer, Esq. HODGES, DOUGHTY & CARSON PLLC Post Office Box 869 Knoxville, TN 37901-0869 Telephone: (865) 292-2307 Email: dfarmer@hdclaw.com About D&H Machine Service, Inc. D&H Machine Service, Inc. filed a chapter 11 petition (Bankr. E.D. Tenn. Case No. 16-30308) on February 9, 2016. The petition was signed by Brian Hillard, president. The Debtor is represented by Dean B. Farmer, Esq., at Hodges, Doughty & Carson, PLLC. The Debtor estimated assets at $500,001 to $1 million and liabilities at $100,001 to $500,000. DANIEL S. BEECROFT: Court to Take Up Plan on August 25 ------------------------------------------------------ The U.S. Bankruptcy Court for the Southern District of Florida is set to hold a hearing on August 25, at 9:30 a.m., to consider approval of the disclosure statement and the Chapter 11 plan of reorganization of Daniel Beecroft. The hearing will take place at the U.S. Bankruptcy Court, U.S. Courthouse, Courtroom 308, 299 E. Broward Boulevard, Fort Lauderdale, Florida. Objections must be filed on or before August 22. Meanwhile, the deadline for voting creditors to file their ballots is August 16. The Debtor's plan proposes that general unsecured creditors will get 100% of their allowed claims upon the sale of the Debtor's real property located at 75 Little Harbor Way, Deerfield Beach Florida. About Daniel S. Beecroft Daniel S. Beecroft filed for Chapter 11 bankruptcy protection (Bankr. S.D. Fla. Case No. 15-23954) on Aug. 1, 2015. The case is assigned to Judge Raymond B. Ray. The Debtor is represented by Stephen P. Orchard, Esq., at the Law Offices of Stephen Orchard. DAWN INC: Proposes Private Sale of Mamaroneck Property ------------------------------------------------------ Judge Robert D. Drain at the U.S. Bankruptcy Judge, at the U.S. Bankruptcy Court for the Southern District of New York, 300 Quarropas Street, White Plains, New York, on Aug. 19, 2016, at 10:00 a.m., will convene a hearing to consider Dawn, Inc., doing business as Cafe Mozart's motion to conduct a private sale of certain assets related to its restaurant business located at 308 Mamaroneck Avenue, Mamaroneck, New York, to Shams Alam or an entity to be designated by him. The Debtor filed for Chapter 11 for the purpose of restructuring and paying its obligations to New York State Department of Tax and Finance ("NYSDTF") stemming from a sales tax audit in 2006/2007. The Debtor was assessed with approximately $142,175 in sales tax and $28,428 in income tax, which were overwhelming amounts for the Debtor to pay. Although the Debtor complied with a payment plan for many years, it struggled to remain current in its tax obligations. NYSDTF filed Tax Warrants, elevating it to secured status. Immediately before the Petition Date NYS was taking enforcement actions which would have effectively shut down the Debtor's business. All totaled, including interest and penalties, NYSDTF alleges the Debtor owes $238,304 (Claims Register # 1-4). In addition to the sales tax issue, on the Petition Date the Debtor was approximately three months in arrears to its Landlord. On Sept. 2, 2015, the Debtor filed an application to retain Great American Brokerage, Inc., to market and sell the restaurant. Great American's retention was approved by order dated Sept. 18, 2015. The Purchaser proffered the best all-cash offer to the Debtor. An offer that was $5,000 higher was received from another party, but it was contingent on a three year pay-out. After consulting with NYSDTF regarding the second offer, the Debtor accepted the Purchaser's all-cash offer. The Landlord also agreed to enter into a new lease with the Purchaser. The new lease will be delivered at closing, contingent on the Debtor surrendering its entire security deposit to the Landlord in the amount of approximately $10,000 in full satisfaction of the prepetition rent arrears in the amount of approximately $15,000. The terms of the sale are: * Purchase Price: $150,000 * Inventory Adjustment: Purchaser will pay an additional amount equal to the Debtor's cost to purchase unexpired inventory, in an amount to be determined within 48 hours before closing. * Assets: Include leasehold improvements, furniture, fixtures and equipment, telephone number, facebook page, intellectual property, right to operate under the Café Mozart name, stock-in-trade and customer lists. * Lease Contingency: The sale is contingent upon the Landlord executing a lease in favor of the Purchaser. * Expressly Excluded Assets: Cash on hand at closing, accounts receivable, insurance policies, books and records, equipment subject to equipment leases, including an ice machine and dishwasher, estate causes of action under Sec. 544 – 553 of the Bankruptcy Code, and the Purchase Price. About Dawn, Inc. Dawn, Inc., is a restaurant located at 308 Mamaroneck Avenue, Mamaroneck, New York 10543. It serves breakfast, brunch, lunch and dinner, and also features classical and live music performances. Cafe Mozart was first opened in 1996. It purchased Cafe Mozart from the original owners in 2003. Dawn, Inc. -- dba Cafe Mozart -- sought Chapter 11 protection (Bankr. S.D.N.Y. Case No. 14-23347-RDD) on Sept. 22, 2014. Judge Robert D. Drain is assigned to the case. The Debtor filed for Chapter 11 for the purpose of restructuring and paying its obligations to New York State Department of Tax and Finance stemming from a sales tax audit in 2006/2007. The Debtor was assessed with approximately $142,175 in sales tax and $28,428 in income tax, which were overwhelming amounts for the Debtor to pay. Although the Debtor complied with a payment plan for many years, it struggled to remain current in its tax obligations. The Debtor has continued in possession of its business and management of its property pursuant to Sec. 1107 and 1108 of the Bankruptcy Code. No official creditors' committee, trustee or examiner has been appointed in this case. DEFENSE HOLDINGS: CEO to Contribute $10K to Fund Bankruptcy Plan ---------------------------------------------------------------- Defense Holdings, Inc., on July 19 filed with the U.S. Bankruptcy Court for the Eastern District of Virginia a plan to exit Chapter 11 protection. The plan of reorganization provides for payments to creditors of Defense Holdings from the "new equity" contribution of $10,000 by Richard Martin, president and chief executive officer of the company. In exchange, the reorganized company will issue new equity interests to Mr. Martin. Aside from Mr. Martin's contribution, payments to creditors will also be funded through cash generated from future business operations. Defense Holdings will make the payments directly to its creditors, according to the disclosure statement detailing the proposed plan. A copy of the disclosure statement is available for free at https://is.gd/t6iqfO About Defense Holdings Defense Holdings, Inc. sought protection under Chapter 11 of the Bankruptcy Code (Bankr. E. D. Va. Case No. 15-14317) on December 7, 2015. The petition was signed by Richard J. Martin, president and CEO. At the time of the filing, the Debtor estimated its assets at $100,000 to $500,000 and debts at $1 million to $10 million. DETROIT, MI: S&P Assigns 'B' Rating on Unlimited Tax GO Debt ------------------------------------------------------------ S&P Global Ratings has assigned its 'AA' rating to Michigan Finance Authority's local government loan program first-lien revenue bonds series 2016C-1, assigned its 'A+' rating to the series 2016C-2 third-lien bonds, and its 'A-' rating to the series 2016C-3 and 2016C-4 fourth-lien bonds. The bonds are issued on behalf of Detroit, Mich. At the same time, S&P Global Ratings affirmed its 'AA-' rating on the second-lien bonds and its 'B' rating on Detroit's unlimited tax general obligation (GO) debt rating. The outlook on all bonds remains stable. A pledge of all distributable state aid payable (DSA) to Detroit secures the bonds, and all bonds also carry the city's GO pledge. First- and third-lien bonds are a limited tax (LT) GO; the second- and fourth-lien bonds are an unlimited tax obligation. Because the second- and fourth-lien bonds are unlimited tax GO (UT GO) bonds, the city will levy a property tax millage for 100% of the debt service. Given the double-barrel pledge, we rate the bonds to the stronger of the two pledges, which is the DSA revenue stream. DSA consists of a portion of the 6% retail sales tax revenues collected across Michigan. The pledged revenues are divided into constitutional and statutory components. Constitutional state aid is distributed based on population; statutory aid is distributed based on a formula the state determines. S&P Global Ratings views the constitutional share of state aid as the more stable of the two components given the state's ability to make adjustments (including reductions) to the statutory portion. "The ratings on the distributable state aid bonds reflect our view of the continued strong DSA revenue stream based on the broad statewide collection area for revenues," said S&P Global Ratings credit analyst Jane Ridley. "The affirmation of our 'B' rating on the city's GO debt reflects our view that the city continues to make progress to improve its financial and operating position post-bankruptcy," she added. Key credit factors include: -- A statutory lien on DSA, consisting of state sales tax revenues Detroit receives from the state; -- The state treasurer's requirement to send all state aid due to the city directly to the trustee, in an amount sufficient for set-aside payments, before releasing any state aid to Detroit; -- Strong coverage of the closed first-lien debt of 2.9x constitutional revenues and 10.3x all-in; -- Good coverage of second-lien debt of 1.9x constitutional revenues and 6.8x all-in, coupled with an additional bonds test (ABT) of 150% of constitutional and 200% of constitutional and statutory revenue; -- Adequate coverage of third-lien debt of 1.4x constitutional revenues and 5.0x all-in, and an ABT of 115% of constitutional and 200% of constitutional and statutory revenue; -- An agreement with the state treasurer that no delay of set- aside payments will occur, even if state aid is withheld or delayed; and -- The treasurer's ability to advance any appropriated state aid to the trustee for payment of debt service, if needed. Offsetting factors include Maximum annual debt service (MADS) coverage from the constitutional portion of distributable state aid of 0.68x following the addition of $35 million in new fourth-lien debt, although all-in coverage from both statutory and constitutional rises to 2.4x ; and -- The pledged revenue stream's sensitivity to both city and state economic conditions, given the constitutional distribution of state aid is based on Detroit's population, and the total amount of state aid available for distribution is based on statewide sales tax collections. The state uses the U.S. Census as its basis for population, so Detroit's population will not be reassessed until the 2020 census. The bonds' structure has several enhancements that S&P believes significantly offset the credit weaknesses arising from Detroit's financial condition. These include the statutory lien and trustee involvement for both the DSA revenues and the UT GO debt millage; the state treasurer's requirement to make set-aside and debt service payments regardless of delays in statutory state aid due to the city; and the ability to advance any state aid due to Detroit for payment of debt service. DSA must be annually appropriated by the state in its budget, but constitutional aid is not discretionary. Although this does leave the revenue stream vulnerable to late budget adoption, Michigan has no history of such. In addition, S&P feels late budget adoption risk is mitigated by the timing of debt service payments, which come in the middle of the state's fiscal year on April 1. The stable outlook on the DSA bonds reflects S&P's expectation that over the two-year time horizon of the outlook, state aid distributions to Detroit will not drop significantly, and that coverage for all bonds, including the fourth-lien series, from total state aid revenues will remain adequate. If delays in the statutory portion of state aid occur, S&P expects that the legal mechanisms will ensure timely payment of debt service. The stable outlook on the GO debt reflects S&P's opinion that the city has stabilized its operations post-bankruptcy, but is still challenged to demonstrate and maintain structural balance. Maintenance of the GO rating is predicated on continued oversight from the Financial Review Commission (FRC). With the city having room to issue additional debt under the second and third liens and low all-in coverage on all series, S&P views dilution of coverage on the DSA bonds as a possibility and, as such, do not expect to raise the rating over the outlook's two-year horizon. If Detroit demonstrated improvement in financial performance and execution, S&P views an upgrade of the GO bonds over the one-year horizon of the outlook as possible, but given the challenges still facing the city, think that likelihood is less than one-in-three. Over the outlook's two-year horizon, S&P could lower the ratings on the bonds if DSA coverage drops significantly, or if additional debt further dilutes coverage. S&P could also lower the GO rating during the one-year outlook horizon if there is deterioration in any of S&P's key credit characteristics: economy, finances, management, and debt, including pensions. DISH NETWORK: Moody's Says Subscriber Losses Cuts Fin'l Flexibility ------------------------------------------------------------------- Moody's Investors Service said that Dish Network Corporation's ("DISH" -- Ba3 CFR) largest quarterly subscriber losses at its satellite pay TV subsidiary, Dish DBS Corporation, reduces financial flexibility for the company. DISH announced with its earnings today that it lost 281,000 pay TV subscribers (at Dish DBS), its biggest quarterly subscriber loss ever. Moody's said, "The net subscriber loss even includes its SLING TV subscribers which we believe are growing, so in our opinion, the satellite TV subscriber loss is even greater. We note that the company increased subscription rates in the beginning of the year, increasing ARPU, which most certainly played a role in the defections and helped to improve financial results for the company. However, of concern is the company's sub loss trend which is worsening at the satellite pay TV operation. This is evidenced by year-over-year Q2 comparison against 81,000 and 44,000 subscriber losses in Q2 2015 and 2014, respectively, and year-to-date sub loss count of about 304,000 as compared to the 2015 Q2 year-to-date sub loss of 46,000 subs. These figures are also worse in the context of full year losses of 81,000 and 79,000 in 2015 and 2014, respectively, demonstrating a marked rise in secular pressure. SLING TV sub additions are included in the company's subscriber figures. However, this narrow-bundle pay TV business which is still a relatively new operation for DISH Network, is outside of the DISH DBS intermediate holding company which is the issuer of all of the company's debt. Since there is no recourse to the DISH DBS sister companies that hold the significant wireless spectrum assets and the SLING TV operations, and there is no guarantee from the ultimate parent DISH Network Corp., bondholders are relying only on the Satellite pay TV operation. Our subscriber loss concerns center upon our view that the ability to raise subscription prices is limited and may lead to more rapid losses and eventually, losses will result in a decline in revenue and EBITDA. OTT competition is rising, and we believe that without another revenue source serving bondholders, the company now is in a post maturity phase. Further, if the negative trend and intensity in subscriber losses continues, DISH DBS's financial flexibility and debt capacity will decline ratably." Moody's said, "Our downward rating trigger has been 5.0x debt-to-EBITDA (including Moody's standard adjustments). After the recent debt issue, leverage was around 4.5x pro forma for the Q1 results. With the slightly better financial results in Q2, leverage will have dropped slightly from that level. If the subscriber trend within the satellite pay TV operation continues, the leverage capacity for the Ba3 CFR will decline in quarter increments depending upon the rate of decline in subscribers unless or until the loss rate declines and eventually stabilizes, if ever. So, at this point we are lowering our rating downgrade trigger to 4.75x debt-to-EBITDA (with Moody's standard adjustments). As the company's leverage remains comfortably below this level, the outlook currently remains stable. Also, if the company issues additional debt outside of DISH DBS to fund spectrum purchases or other non-recourse operations, Moody's will likely consider some portion of those obligations as additional leverage if DISH DBS cash flow is taxed to service that debt." DIVINE RIPE: Frescos' Objection to Disclosure Statement Sustained ----------------------------------------------------------------- Judge Eduardo V. Rodriguez sustained Frescos Tomver, S.A. DE C.V.'s objection to the disclosure statement and denied Divine Ripe, L.L.C.'s motion to appoint Saul Zuniga as designated representative pursuant to Federal Bankruptcy Rule 9001(5)(A). Frescos Tomver, an unsecured creditor, alleged that the debtor's disclosure statement does not contain adequate information on certain aspects of the debtor's plan of reorganization: information on Marco Jimenez's financial capabilities and information about certain aspects of the debtor. In addition, Frescos Tomver objected on the premise that the debtor's plan would be violative of federal law. On the other hand, the debtor sought the court's approval for the debtor to appoint Saul Zuniga, an employee of the debtor, as the designated representative. Judge Rodriguez found that the debtor failed to provide adequate information as to certain portions of the debtor's affairs and failed to provide adequate information as to Jimenez, but did not reach the merits of the legality of certain plan provisions relied upon by the debtor that may serve as a bar to confirmation. Judge Rodriguez also found Zuniga does not qualify as an "other person in control," as contemplated by Fed. R. Bankr. P. 9001(5) and Tex. Bus. Orgs. Code section 101.251-254, such that Zuniga may be appointed debtor's representative. A full-text copy of Judge Rodriguez's July 21, 2016 memorandum opinion is available at http://bankrupt.com/misc/txsb15-70405-140.pdf The bankruptcy case is captioned IN RE: DIVINE RIPE, L.L.C. Debtor, CASE NO. 15-70405 (Bankr. S.D. Tex.). DOLPHIN DIGITAL: To Hold "Say-on-Pay" Votes Triennially ------------------------------------------------------- Dolphin Digital Media, Inc., filed with the Securities and Exchange Commission an amended Current Report on Form 8-K/A which updates information disclosed in a Current Report on Form 8-K filed on Feb. 25, 2016, relating to Dolphin Digital's 2015 Annual Meeting of Shareholders held on Feb. 22, 2016. The sole purpose of the Amendment is to disclose the Company's decision regarding how frequently it will conduct future advisory votes on executive compensation. At the Annual Meeting, the Company's shareholders voted to hold a say-on-pay vote every three years. Based on these results, the Company has determined that it will hold say-on-pay votes every three years until the next required advisory vote on the frequency of say-on-pay votes occurs or until the Company otherwise determines that a different frequency for say-on-pay votes is in the best interests of the shareholders. The next required advisory vote on the frequency will occur no later than 2022. About Dolphin Digital Coral Gables, Florida-based Dolphin Digital Media, Inc., is dedicated to the twin causes of online safety for children and high quality digital entertainment. By creating and managing child-friendly social networking websites utilizing state-of the- art fingerprint identification technology, Dolphin Digital Media, Inc. has taken an industry-leading position with respect to internet safety, as well as digital entertainment. Dolphin Digital reported a net loss of $4.05 million on $2.99 million of total revenue for the year ended Dec. 31, 2015, compared to a net loss of $1.87 million on $2.07 million of total revenue for the year ended Dec. 31, 2014. As of March 31, 2016, Dolphin Digital had $20.71 million in total assets, $46.72 million in total liabilities and a total stockholders' deficit of $26 million. BDO USA, LLP, in Miami, Florida, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2015, citing that the Company has suffered recurring losses from operations, negative cash flows from operations, and does not have sufficient working capital. These events raise substantial doubt about the Company's ability to continue as a going concern. DRAGONWAVE INC: Reports $4.04-Mil. Net Loss in Qtr. Ended May 31 ---------------------------------------------------------------- DragonWave Inc. filed with the U.S. Securities and Exchange Commission its quarterly report on Form 6-K for the three-months ended May 31, 2016. The Company reported a net loss of $4.04 million on $12.54 million of total revenues for the period, compared to a net loss of $5.82 million on $26.34 million of total revenues for the same period in 2015. The Company's balance sheet at May 31, 2016, showed $48.42 million in total assets, $45.17 million in total liabilities, and total equity of $3.24 million. The Company remains in breach of the terms of its debt facility, and is negotiating a new long term debt facility. The continued consumption of cash has raised substantial doubt about DragonWave Inc.'s ability to continue as a going concern. Management's plans to restructure the business and overcome these difficulties include initiatives in a number of areas which includes targeting its sales efforts to direct and indirect opportunities in markets with higher gross margins, and lower working capital requirements; adjusting its business focus and resources away from Nokia in order to support new sales channels; renegotiating the terms of existing debt facilities; continuing to minimize fixed and variable operating expenses, by tightly controlling discretionary spending and headcount growth; actively investigating and pursuing alternative forms of financing; reducing inventory levels in both raw material and finished goods inventory; and working closely with vendors to ensure supply continuity. A copy of the Form 6-K is available at: https://is.gd/dcrT4M About DragonWave DragonWave(R) -- http://www.dragonwaveinc.com-- is a provider of high-capacity packet microwave solutions that drive next-generation IP networks. DragonWave's carrier-grade point-to-point packet microwave systems transmit broadband voice, video and data, enabling service providers, government agencies, enterprises and other organizations to meet their increasing bandwidth requirements rapidly and affordably. The principal application of DragonWave's portfolio is wireless network backhaul, including a range of products ideally suited to support the emergence of underlying small cell networks. Additional solutions include leased line replacement, last mile fiber extension and enterprise networks. DragonWave's corporate headquarters is located in Ottawa, Ontario, with sales locations in Europe, Asia, the Middle East and North America. ELITE PHARMACEUTICALS: Conference Call Held to Discuss FDA CRL -------------------------------------------------------------- As reported in a Current Report on Form 8-K filed with the SEC on July 15, 2016, on July 15, 2016, Elite Pharmaceuticals, Inc., announced that the U.S. Food and Drug Administration issued a Complete Response Letter regarding the New Drug Application, or NDA, for SequestOx (oxycodone hydrochloride and naltrexone hydrochloride), Elite's investigational abuse-deterrent opioid candidate for the management of moderate to severe acute pain where the use of an opioid analgesic is appropriate. The CRL indicated that the review cycle for the SequestOx NDA is complete and the application is not ready for approval in its present form. On July 18, 2016, Elite held a conference call to provide more detail about the CRL. A copy of the transcript of that call is available for free at https://is.gd/qyByFE About Elite Pharmaceuticals Northvale, New Jersey-based Elite Pharmaceuticals, Inc., is a specialty pharmaceutical company principally engaged in the development and manufacture of oral, controlled-release products, using proprietary technology and the development and manufacture of generic pharmaceuticals. The Company has one product, Phentermine 37.5mg tablets, currently being sold commercially. Elite reported net income attributable to common shareholders of $28.9 million on $5 million of total revenues for the year ended March 31, 2015, compared to a net loss attributable to common shareholders of $96.5 million on $4.6 million of total revenues for the year ended March 31, 2014. As of Dec. 31, 2015, the Company had $27.1 million in total assets, $29.2 million in total liabilities, $58.4 million in convertible preferred shares and a $60.5 million total stockholders' deficit. ELK CREEK: Can Use up to $10K in Cash for Daily Expenses -------------------------------------------------------- Judge Laura T. Beyer of the U.S. Bankruptcy Court for the Western District of North Carolina, authorized Elk Creek International, Inc., to use cash collateral on an interim basis. Judge Beyer authorized the Debtor to use cash collateral to meet payroll, to pay other customary and necessary day to day expenses to operate its business, and to prevent immediate and irreparable harm to the estate. She limited the Debtor's use of Cash Collateral to the sum of $10,000. The Debtor contended that secured creditors Yadkin Bank and Export-Import Bank of the United States, may assert a perfected security interest in the cash collateral. Judge Beyer granted Yadkin Bank and Export-Import Bank replacement liens upon all post-petition assets of the Debtor of the same character and type, and to the same extent and validity, as the liens and ecumbrances of the Secured Creditors attached to the Debtors' assets pre-petition. She also directed to Debtor to make weekly reports to the Secured Creditors and the U.S. Bankruptcy Administrator regarding the use of cash, aging of accounts receivable, revenues and expenses, beginning on July 15, 2016. A full-text copy of the Order, dated July 21, 2016, is available at https://is.gd/p4P1bT About Elk Creek International, Inc. Elk Creek International, Inc., fdba Elk Creek Lumber Inc., fdba Elk Creek Properties, LLC, sought protection under Chapter 11 (Bankr. W.D.N.C. Case No. 16-50423) on July 5, 2016. The petition was signed by David M. Blair, president. The Debtor is represented by James H. Henderson, Esq., at The Henderson Law Firm. The case is assigned to Judge Laura T. Beyer. The Debtor estimated assets of $0 to $50,000 and debts of $1 million to $10 million at the time of the filing. EMPIRE RESORTS: James Simon Resigns as Director ----------------------------------------------- Mr. James Simon informed Empire Resorts, Inc., on July 19, 2016, of his decision to resign from the Company's Board of Directors, effective immediately, as disclosed in a Form 8K report filed with the Securities and Exchange Commission. Mr. Simon's resignation was due to personal health reasons and not due to any disagreement with the Company. Mr. Simon served as a director of the Company since August 2007 and also served on the Company's Audit Committee, Compensation Committee and Regulatory Compliance Committee. About Empire Resorts Based in Monticello, New York, Empire Resorts, Inc. (NASDAQ: NYNY) -- http://www.empireresorts.com/-- owns and operates Monticello Casino & Raceway, a video gaming machine and harness racing track and casino located in Monticello, New York, 90 miles northwest of New York City. Empire Resorts reported a net loss applicable to common shareholders of $36.8 million on $68.2 million of net revenues for the year ended Dec. 31, 2015, compared to a net loss applicable to common shareholders of $24.1 million on $65.2 million of net revenues for the year ended Dec. 31, 2014. As of March 31, 2016, Empire Resorts had $334.73 million in total assets, $37.69 million in total liabilities and $297.04 million in total stockholders' equity. ENOR CORP: Committee Seeks to Hire Saul Ewing as Legal Counsel -------------------------------------------------------------- The official committee of unsecured creditors of Enor Corp. seeks approval from the U.S. Bankruptcy Court for the District of New Jersey to hire Saul Ewing LLP as its legal counsel. The firm will provide these services to the committee in connection with the Debtor's Chapter 11 case: (a) advise the committee with respect to its rights, duties, and powers in the Debtor's case; (b) assist and advise the Committee in its consultations with the Debtor relative to the administration of the case; (c) assist the committee in analyzing the claims of creditors and the Debtor's capital structure, and in negotiating with holders of claims and equity interests; (d) assist the committee in investigating of the acts, conduct, assets, liabilities, financial condition and business operation of the Debtor; (e) assist the committee in its analysis of, and negotiations with, the Debtor or any third party concerning matters related to asset disposition, financing, and the terms of a plan of reorganization; (f) assist and advise the committee as to its communications to unsecured creditors; (g) review and analyze applications, orders, statements of operations and schedules filed with the court, and advise the committee as to their propriety; (h) prepare legal papers and represent the committee at hearings and other proceedings. The firm's professionals and their hourly rates are: Partners $395 - $925 Special Counsel $350 - $575 Associates $250 - $410 Paraprofessionals $190 - $325 Sharon Levine, Esq, a partner at Saul Ewing, disclosed in a court filing that the firm is a "disinterested person" as defined in section 101(14) of the Bankruptcy Code. The firm can be reached through: Sharon L. Levine, Esq. Dipesh Patel, Esq. Saul Ewing LLP One Riverfront Plaza, Suite 1520 1037 Raymond Boulevard Newark, NJ 07102 Tel: (973) 286-6713 About Enor Corp Enor Corporation is a plastics manufacturer that originally focused on the production of protective plastic sleeves and packaging for use in hobbies, photographic storage and the storage of collectible items. Enor operated out of two facilities, one in New Jersey and one in South Carolina, which are owned by affiliates. Enor Corporation sought Chapter 11 protection (Bankr. D.N.J. Case No. 15-32714) on Dec. 2, 2015. Judge Vincent F. Papalia is assigned to the case. The petition was signed by Steven Udwin, director. The Debtor disclosed assets of $248,659 and $5.20 million in debt. Jeffrey A. Cooper, Esq., at Rabinowitz, Lubetkin & Tully, LLC, serves as the Debtor's counsel. On Dec. 18, 2015, the U.S. Trustee's office established an official committee of unsecured creditors. On April 4, 2016, the Court entered an order authorizing the Committee to retain B. Riley & Co., LLC, as financial advisors. No trustee has been appointed in the Chapter 11 case. ENTERPRISE CLOUDWORKS: Wants Immediate Use of Cash Collateral ------------------------------------------------------------- Enterprise Cloudworks, Incorporated asks the U.S. Bankruptcy Court for the Eastern District of Pennsylvania for authorization to use cash collateral. The Debtor is indebted to R&F International Holdings, LLC in the amount of $769,468, excluding accrued interest and reasonable counsel fees, as of the Petition Date. The Debtor relates that it has been in discussions with R&F International Holdings to reach a consensual agreement on the Debtor's use of cash collateral, adequate protection to be afforded to R&F International Holdings after the Petition Date and to obtain post-petition financing. The Debtor further relates that in the event no agreement is reached, it is requesting that the Court authorize the use of cash collateral. The Debtor tells the Court that in the normal course of its business, it incurs obligations to suppliers for a variety of goods and services, and their employees, which are essential to the continued existence of the Debtor as a going concern. The Debtor further tells the Court that without the immediate authority to use its cash, the Debtor does not have the funds with which to conduct business. The Debtor says that it is currently preparing a budget for its projected cash receipts and disbursements which will be submitted before the hearing on its Motion. A full-text copy of Debtor's Motion, dated July 22, 2016, is available at https://is.gd/9xHi4C Enterprise Cloudworks, Incorporated is represented by: Aris J. Karalis, Esq. Robert W. Seitzer, Esq. MASCHMEYER KARALIS P.C. 1900 Spruce Street Philadelphia, PA 19103 Telephone: (215) 546-4500 Email: AKaralis@cmklaw.com RSeitzer@cmklaw.com About Enterprise Cloudworks, Incorporated Enterprise Cloudworks, Incorporated filed a chapter 11 petition (Bankr. E.D. Pa. Case No. 16-15198(SR)) on July 22, 2016. The Debtor is represented by Aris J. Karalis, Esq. and Robert W. Seitzer, at Maschmeyer Karalis, P.C., in Philadelphia. ESML HOLDINGS: U.S. Trustee Forms 3-Member Committee ---------------------------------------------------- Andrew Vara, acting U.S. trustee for Region 3, on July 20 appointed three creditors to serve on the official committee of unsecured creditors of ESML Holdings, Inc. and its affiliates. The committee members are: (1) Axis Capital, Inc. Attn: Andrea Zana c/o Amur Finance Company, Inc. One North Lexington Ave, Suite 1101 White Plains, NY 10601 Phone: 212-893-8864 (2) ArcelorMittal USA, LLC Attn: Eric Knorr 3300 Dickey Road East Chicago, IN 46312 Phone: 219-399-1200 (3) FLSmidth USA, Inc. Attn: Mark Taylor 7158 South FLSmidth Drive Midvale, Utah 84047 Phone: 801-871-7240 Official creditors' committees have the right to employ legal and accounting professionals and financial advisors, at a debtor's expense. They may investigate the debtor's business and financial affairs. Importantly, official committees serve as fiduciaries to the general population of creditors they represent. About ESML Holdings ESML Holdings Inc. and Essar Steel Minnesota LLC sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D. Del. Lead Case No. 16-11626) on July 8, 2016. The petition was signed by Madhu Vuppuluri, president and chief executive officer. The cases are assigned to Judge Brendan Linehan Shannon. The Debtors tapped Fox Rothschild LLP as local counsel, and Guggenheim Securities, Inc. as investment banker. At the time of the filing, ESML Holdings estimated its assets at $1 billion to $10 billion and debts at $500 million to $1 billion. Essar Steel estimated its assets and debts at $1 billion to $10 billion. ESS AUTOMOTIVE: Wants Authorization to Use IRS Cash Collateral -------------------------------------------------------------- ESS Automotive, Inc. asks the U.S. Bankruptcy Court for the Northern District of Ohio for authorization to use cash collateral. The Debtor relates that the cash collateral consists of payments which it receives from its customers. The Debtor names the Internal Revenue Service as the only entity having an interest in the cash collateral. It proposes to make monthly adequate protection payments to the IRS in the amount of $1,934, beginning on September 1, 2016. The Debtor says that it needs to use the cash collateral in order to operate its business, purchase inventory and supplies, pay for utilities and otherwise meet the needs of its customers. A full-text copy of Debtor's Motion, dated July 21, 2016, is available at https://is.gd/PXKI3Y ESS Automotive, Inc. is represented by: Glenn E. Forbes, Esq. FORBES LAW LLC 166 Main Street Painesville, OH 44077 Telephone: (440) 357-6211 About ESS Automotive, Inc. ESS Automotive, Inc. filed a chapter 11 petition (Bankr. N.D. Ohio Case No. 13-14658) on June 29, 2013. The Debtor is represented by Glenn E. Forbes, Esq., at Forbes Law LLC. The case is assigned to Judge Harris. ESSAR STEEL MINNESOTA: Hires Fox Rothschild as Co-counsel --------------------------------------------------------- Essar Steel Minnesota LLC and ESML Holdings Inc., seek authority from the U.S. Bankruptcy Court for the District of Delaware to employ Fox Rothschild LLP as co-counsel to the Debtors, nunc pro tunc to July 8, 2016. Essar Steel Minnesota requires Fox Rothschild to: a. take all necessary actions to protect and preserve the estates of the Debtors, including the prosecution of actions on the Debtors' behalf, the defense of any actions commenced against the Debtors, the negotiation of disputes in which the Debtors are involved, and, if necessary, the preparation of objections to claims filed against the Debtor's estates; b. provide legal advice with respect to the Debtors' powers and duties as debtors in possession in the continued operation of their businesses and management of their properties; c. negotiate, prepare and pursue confirmation of a plan and approval of a disclosure statement; d. prepare on behalf of the Debtors, as debtors in possession, necessary motions, applications, answers, orders, reports and other legal papers in connection with the administration of the Debtors' estates; e. appear in court to protect the interests of the Debtors before the court; f. assist with any disposition of the Debtors' assets, by sale or otherwise; g. perform all other legal services in connection with the chapter 11 cases as may reasonably be required; and h. serve as conflicts counsel, if necessary. Fox Rothschild will be paid at these hourly rates: Jeffrey M. Schlerf $700 Partners $330-$895 Associates $195-$510 Paraprofessionals $135-$370 Fox Rothschild will be paid a retainer in the amount of $20,000. Fox Rothschild will also be reimbursed for reasonable out-of-pocket expenses incurred. Jeffrey M. Schlerf, partner at Fox Rothschild LLP, assured the Court that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtors and their estates. Fox Rothschild can be reached at: Jeffrey M. Schlerf, Esq. FOX ROTHSCHILD LLP Citizens Bank Center, Suite 300 919 North Market Street Wilmington, DE 19899-2323 Tel: (302) 654-7444 Fax: (302) 656-8920 E-mail: jschlerf@foxrothschild.com About Essar Steel Minnesota LLC. Essar Steel Minnesota LLC and ESML Holdings Inc. filed for Chapter 11 bankruptcy protection (Bankr. D. Del. Case Nos. 16-11627 and 16-11626) on July 8, 2016. The bankruptcy petition was signed by Madhu Vuppuluri, president and chief executive officer. The Debtors are represented by Craig H. Averich, Esq., at White & Case LLP and John L. Bird, Esq. and Jeffrey M. Schlerf, Esq., at Fox Rothschild LLP. The cases are assigned to Judge Brendan Linehan Shannon. ESML Holdings Inc. estimated assets at $1 billion to $10 billion and debts at $500 million to $1 billion. Essar Steel Minnesota LLC estimated assets and debts at $1 billion to $10 billion. EUROTECH CABINETS: Can Use IRS Cash Collateral Up To December 31 ---------------------------------------------------------------- Judge Peter H. Carroll of the U.S. Bankruptcy Court for the Central District of California authorized Eurotech Cabinets, Inc. to use cash collateral, pursuant to the stipulation between the Debtor and the Internal Revenue Service. The IRS contended that the Debtor owed it $280,921.72 in delinquent payroll taxes and $115,217.05 in other liabilities that are secured. The IRS further contended that the cash proceeds of the Debtor's operations is cash collateral. The Debtor was authorized to use cash collateral in the ordinary course of business until December 31, 2016. The Debtor was directed to make monthly payments, in the amount of $6,602.31, to the IRS beginning on August 1, 2016. Of the said amount, $3,301.31 will be credited by the IRS to the Trust Fund portion of FICA for the quarter ending on December 31, 2009, until it is paid in full. Once the trust fund portion of FICA for the quarter ending on December 31, 2009 is paid in full, the remaining funds from the first half of the payment will be credited to the IRS' secured claim and interest thereon, at the IRS' discretion. The Debtor granted the IRS a replacement lien on post-petition cash and cash equivalents, inventory, accounts receivable, equipment, and contract rights, which are the same type of assets that secure the IRS' pre-petition tax liens. A full-text copy of the Order, dated July 22, 2016, is available at https://is.gd/SlaEkD About Eurotech Cabinets, Inc. Eurotech Cabinets, Inc., based in Oxnard, CA, filed a Chapter 11 petition (Bankr. C.D. Cal. Case No. 16-11257) on July 3, 2016. The Hon. Peter Carroll presides over the case. John D Faucher, Esq., at Faucher & Associates, as bankruptcy counsel. In its petition, the Debtor disclosed $115,217 to $1.78 million in both assets and liabilities. The petition was signed by Michael Leach, president. EUROTECH CABINETS: Can Use State Cash Collateral Through Dec. 31 ---------------------------------------------------------------- Judge Peter H. Carroll of the U.S. Bankruptcy Court for the Central District of California authorized Eurotech Cabinets, Inc. to use cash collateral, pursuant to a Stipulation executed by the Debtor and the California Employment Development Department. The Debtor owes $28,473.41 in delinquent payroll taxes, subject to priority treatment. The California Employment Development Department has filed notices of state tax liens covering more than $26,000 of this liability, and believes that cash proceeds of the Debtors' operations is cash collateral. The Debtor believes that the expenses listed in its Budget must be paid in order to avoid significant and irreparable harm to its business. The Stipulation authorizes the Debtor to use cash collateral in the ordinary course of business from the Petition date through December 31, 2016. The Stipulation provides that by August 1, 2016, and on or before the first day of each following month, the Debtor shall make monthly payments to the California Employment Development Department in the amount of $511.64, representing principal and interest at 3%. Such payments will be designated to pay the Debtor's payroll tax obligations in chronological order. A full-text copy of the Order, dated July 21, 2016, is available at https://is.gd/yxVoxY About Eurotech Cabinets, Inc. Eurotech Cabinets, Inc., based in Oxnard, CA, filed a Chapter 11 petition (Bankr. C.D. Cal. Case No. 16-11257) on July 3, 2016. The Hon. Peter Carroll presides over the case. John D Faucher, Esq., at Faucher & Associates, as bankruptcy counsel. The Debtor disclosed $115,217 in assets and $1.78 million in liabilities at the time of the filing. The petition was signed by Michael Leach, president. FAIRFIELD SHOPPING: Court Narrows Claims in ASI Suit ---------------------------------------------------- Judge Staci G. Cornelius of the United States District Court for the Northern District of Alabama, Southern Division, granted in part and denied in part the plaintiff American Safety Indemnity Company's motion to exclude certain testimony from defendant GE Commercial Finance Business Property Corporation's designated experts. The judge also granted in part and denied in part ASI's motion for summary judgment. Lastly, Judge Cornelius denied GE's motion to strike ASI's reply brief. The action involves a dispute over insurance coverage for damage to a vacant commercial building in Fairfield, Alabama. ASI issued an insurance policy for the property at issue, and GE, the mortgagee of the property, filed an insurance claim with ASI for approximately $3.5 million in alleged losses caused by theft and vandalism at the property. ASI asked the court to declare there is no coverage under the insurance policy for GE's claim or for a claim brought by the defendant Fairfield Shopping Center, LLC (FSC), the owner of the property. GE asserted counterclaims against ASI for breach of the insurance contract and bad faith based on ASI's failure to pay its claim. ASI moved for summary judgment pursuant to Federal Rule of Civil Procedure 56 on its claims for declaratory judgment against FSC and GE and also on GE's counterclaims. ASI also moved to exclude certain testimony from GE's designated experts, and GE moved to strike ASI's reply brief. Judge Cornelius denied GE's motion to strike. The judge also denied ASI's motion to exclude as to the allegedly undisclosed opinion the roof deteriorated beyond repair over the course of two months following November 20, 2010. The balance of ASI's motion to exclude was granted. Accordingly, GE's experts, Darrell Varnado and Roddy Jerkins, who prepared an estimate of the losses at the property, cannot offer the following opinions at trial: (1) thieves or vandals accessed and caused damage to the interior of the building at the Property during the Policy Period; (2) the value of the loss attributable to the electrical components stolen or vandalized in the interior of the building at the Property; (3) the Property's roof membrane was damaged when thieves drug sharp metal pieces across it; (4) the value of the loss attributable to the HVAC units damaged at the Property; and (5) HVAC units at the Property were subject to theft or vandalism during the Policy Period. Judge Cornelius granted ASI's motion for summary judgment with respect to FSC and GE's counterclaim for bad faith. The judge held that ASI is entitled to a declaration there is no coverage under the Policy for a claim by FSC, and GE's counterclaim for bad faith is due to be dismissed with prejudice. Finally, Judge Cornelius denied ASI's motion for summary judgment with respect to its claims against GE and GE's counterclaim for breach of contract, and these claims will proceed. A full-text copy of Judge Cornelius' July 18, 2016 memorandum opinion and order is available at https://is.gd/XAgfUy from Leagle.com. The case is AMERICAN SAFETY INDEMNITY COMPANY, Plaintiff, v. FAIRFIELD SHOPPING CENTER, LLC, et al., Defendants, Case No. 2:12-cv-02415-SGC (N.D. Ala.). American Safety Indemnity Company is represented by: William M. Davis, Esq. Steven J. Kyle, Esq. BOVIS KYLE BURCH & MEDLIN LLC 200 Ashford Center North, Suite 500 Atlanta, GA 30338-2668 Tel: (770)391-9100 Fax: (770)668-0878 Email: wdavis@boviskyle.com kyle@boviskyle.com -- and -- James R. Bussian, Esq. MAYNARD COOPER & GALE PC 1901 Sixth Avenue North Regions Harbert Plaza, Suite 2400 Birmingham, AL 35203 Tel: (205)254-1000 Email: jbussian@maynardcooper.com Fairfield Shopping Center, LLC, GE Commercial Finance Business Property Corp., ISAOA, Fairfield Shopping Center, LLC, GE Commercial Finance Business Property Corp., ISAOA, are represented by: Stephen A. Rowe, Esq. Aaron G. McLeod, Esq. ADAMS & REESE LLP Regions Harbert Plaza 1901 6th Avenue North, Suite 3000 Birmingham, AL 35203 Tel: (205)250-5000 Fax: (205)250-5034 Email: steve.rowe@arlaw.com aaron.mcleod@arlaw.com FAR WESTERN GRAPHICS: Voluntary Chapter 11 Case Summary ------------------------------------------------------- Debtor: Far Western Graphics, Inc. aka Denevi Digital aka FWG/Print Solution aka Denevi Digital aka FWG/Print Solution 1105 Kern Avenue Sunnyvale, CA 94085 Case No.: 16-52108 Chapter 11 Petition Date: July 21, 2016 Court: United States Bankruptcy Court Northern District of California (San Jose) Judge: Hon. Stephen L. Johnson Debtor's Counsel: Lars T. Fuller, Esq. THE FULLER LAW FIRM, PC 60 N Keeble Ave. San Jose, CA 95126 Tel: (408) 295-5595 E-mail: Fullerlawfirmecf@aol.com lars.fullerlaw@gmail.com Estimated Assets: $500,000 to $1 million Estimated Liabilities: $1 million to $10 million The petition was signed by Serena Dawn Motekaitis, chief executive officer. The Debtor did not include a list of its largest unsecured creditors when it filed the petition. FLORIDA MOVING: Seeks to Hire IZ Forensics as Accountant -------------------------------------------------------- Florida Moving & Storage Inc. seeks approval from the U.S. Bankruptcy Court for the Southern District of Florida to hire IZ Forensics LLC as its accountant. The services to be provided by the firm include the filing of the Debtor's tax returns and the preparation of its financial statements and monthly operating reports. IZ Forensics will bill the Debtor for actual hours spent based on these hourly rates: Bookkeeping Tasks $65 Month End Close $90 Financial Statement $90 Preparation Scott Karp, a certified public accountant employed by IZ Forensics, disclosed in a court filing that the firm does not hold or represent any interest adverse to the Debtor's estate. The firm can be reached through: Scott R. Karp, CPA IZ Forensics LLC 1801 N. Military Trail, Suite 160 Boca Raton, Florida 33431 About Florida Moving Florida Moving & Storage Inc. sought protection under Chapter 11 of the Bankruptcy Code (Bankr. S. D. Fla. Case No. 16-19652) on July 11, 2016. The Debtor is represented by Chad T. Van Horn, Esq., at Van Horn Law Group Inc. FNB CORP: Moody's Continues to Review Ba2 Rating for Upgrade ------------------------------------------------------------ Moody's Investors Service is continuing its review for upgrade of F.N.B. Corporation (FNB) and its bank subsidiary following the announcement by FNB that it has agreed to acquire unrated Yadkin Financial Corporation in an all-stock transaction set to close in the first quarter of 2017. The ratings on review include FNB's Baa3 issuer rating, Baa3 subordinated debt rating and Ba2 (hyb) rating on noncumulative preferred stock. At FNB's lead bank subsidiary, First National Bank of Pennsylvania, the baa2 standalone baseline credit assessment, A3 long-term and Prime-2 short-term deposit ratings, and Baa1(cr) counterparty risk assessment (CR assessment) also remain on review for upgrade. The bank's Prime-2(cr) short-term CR assessment is not on review for upgrade. RATINGS RATIONALE Moody's review for upgrade was initiated on May 31 to reflect improvements in FNB's corporate governance as well as its demonstrated capability in the integration of bank acquisitions. As such, FNB's agreement to acquire another bank is broadly consistent with its above-average acquisition appetite. Nonetheless, the Yadkin transaction stands out for three reasons. One, with $7.5 billion in total assets, Yadkin is FNB's largest acquisition to date, it represents about 35% of FNB's size, and it quickly follows the February 2016 purchase of Metro Bancorp, Inc. Two, Yadkin's franchise, which is focused on North Carolina, represents a significant geographic extension of FNB's franchise, which has been focused on Pennsylvania and contiguous markets. Third, Yadkin itself had an above-average acquisition appetite, which Moody's believes heightens the risk of a due diligence misstep since it is a relatively recent amalgamation of several different North Carolina community banks. These challenges, and the appropriateness of FNB's 3.6% credit mark on Yadkin's loan portfolio, will be incorporated into Moody's review process. While Moody's does not anticipate any integration issues given FNB's strong integration track record, the challenges identified above reduce the likelihood that FNB's ratings will be upgraded at the conclusion of the review. What Could Change the Rating -- UP Moody's said, "To the extent we conclude that FNB's corporate governance improvements will be sustained, its capital position will not materially weaken, and the acquisition of Yadkin does not meaningfully increase its risk profile, that could result in a higher rating at the conclusion of our review." What Could Change the Rating -- DOWN Moody's could confirm FNB's ratings at their current level if it concludes that the Yadkin acquisition has significantly increased FNB's risk profile and/or if Moody's expects FNB to be aggressive in the management of its capital position. FOODSERVICEWAREHOUSE.COM: Has Until Sept. 16 to Use Cash -------------------------------------------------------- Judge Elizabeth W. Magner of the U.S. Bankruptcy Court for the Eastern District of Louisiana authorized FoodServiceWarehouse.com, LLC to use cash collateral until the close of business on September 16, 2016. IberiaBank and Pride, as subrogee to the rights of IberiaBank, asserted that they are the holders of valid properly-perfected liens on and security interests in substantially all of the Debtor's assets, including the Debtor's cash collateral. They contended that the cash collateral consists of the cash proceeds from the sale of the Debtor's inventory, as well as receivables, rebates and incentive payments which the Debtor receives from its manufacturers and/or from Pride, based on sales volume. The Debtor tells the Court that Paymentech, LLC, its credit card processor, may assert a secured right of setoff or other rights against the Debtor's future post-petition credit card sale proceeds, which proceeds will arise only through the continuing post-petition sale of the Debtor's inventory subject to the lien on IberiaBank and, by way of subrogation, Pride. Judge Magner acknowledged that without the use of cash collateral, the Debtor would not have sufficient available sources of cash to continue to operate its business for the purpose of winding down its affairs and liquidating its assets in the most efficient manner possible to maximize the value thereof for the benefit of its creditors. Judge Magner referred the prepetition liens of IberiaBank and Pride, as subrogee, to the proceeds from the liquidation and sale of the inventory remaining after payment of the expenses listed in the approved Budget. She directed the Debtor to retain a reserve for working capital in the amount of $250,000, with any sums held by the Debtor in excess of $250,000 reserve for working capital paid over to Iberia, and upon payment in full, to Pride, beginning with the week ending July 22, 2016, and on August 5, 2016, August 19 2016, September 2, 2016, and September 16, 2016. The approved Budget forecasts expenses for the week beginning July 1, 2016 until the week beginning July 29, 2016. The Budget provides for total disbursements in the amount of $53,000 for the week beginning July 22, 2016 and $340,268 for the week beginning July 29, 2016. Judge Mager authorized Carve-Out for any and all unpaid expenditures authorized or made pursuant to an Approved Budget, whether or not paid: (i) the paid and unpaid fees of the Clerk of the Bankruptcy Court and the U.S. Trustee; (ii) the reasonable paid and unpaid fees, disbursements, costs, and expenses incurred by the Debtor Professionals and prior to the Termination Date to the extent allowed by the Bankruptcy Court, whether by interim order, procedural order or otherwise; (iii) the reasonable unpaid fees, disbursements, costs, and expenses incurred prior to the Termination Date and in accordance with the Approved Budget of professionals retained by the Committee, if one is formed and all reasonable unpaid out-of-pocket expenses of the members of the Committee, if one is formed, and after the expiration of the Remedies Notice Period: (1) the sum of $75,000, in addition to any retainer then held by such professional, for fees, disbursements, costs, and expenses incurred by Heller Draper; (2) the sum of $25,000, in addition to any retainer then held by such professional, for fees, disbursements, costs and expenses incurred by R2 Advisors; (3) the sum of $25,000, in addition to any retainer then held by such professional, for fees, disbursements, costs, and expenses thereafter incurred by the Committee Professionals, if any; and (4) subject to applicable law and obtaining the agreement of IberiaBank, until paid in full, and Pride as subrogee, a payment equal to one month’s salary to management of the Debtor who remain employed until discharged by the Debtor. A full-text copy of the Order, dated July 21, 2016, is available at https://is.gd/FKNUtJ About FoodServiceWarehouse.com, LLC. FoodServiceWarehouse.com, LLC sought protection under Chapter 11 of the (Bankr. E.D. La. Case No. 16-11179) on May 20, 2016. The petition was signed by Thomas Kim, chief restructuring officer. The Debtor tapped Barry W. Miller, Esq., at Heller, Draper, Patrick, Horn & Dabney, L.L.C., as counsel; r2 Advisors, LLC as financial advisor; HyperAMS, LLC, as liquidation consultant; and Donlin, Recano & Company, Inc. as its claims, noticing and solicitation agent. The case is assigned to Judge Elizabeth Magner. The Debtor estimated its assets and liabilities in the range of $10 million to $50 million at the time of the filing. FORBES ENERGY: Moody's Cuts CFR to Ca, Outlook Neg. --------------------------------------------------- Moody's Investors Service, downgraded Forbes Energy Services Ltd.'s (Forbes) Corporate Family Rating (CFR) to Ca from Caa2, its Probability of Default Rating to Ca-PD/LD from Caa2-PD, and its senior unsecured rating to Ca from Caa3. Moody's also affirmed the company's SGL-3 Speculative Grade Liquidity Rating. The ratings outlook was changed to negative from stable. "The downgrade of Forbes's CFR and senior notes ratings reflects the increased likelihood of a near term restructuring following the company's failure to make its scheduled June 15, 2016 interest payment within the 30 day grace period and that the company had entered into a forbearance agreement with its noteholders," noted John Thieroff, Moody's Vice President. "The downgrade also incorporates our expectation for recovery on the unsecured notes of less than 50%." Moody's appended a limited default designation to Forbes's PDR because the missed interest payment is deemed an event of default. The "LD" designation will be removed from the PDR within a few days. -- Downgraded: -- Corporate Family Rating, Downgraded to Ca from Caa2 -- Probability of Default Rating, Downgraded to Ca-PD/LD from Caa2-PD -- Senior Unsecured Rating, Downgraded to Ca (LGD 4) from Caa3 (LGD 4) -- Outlook: Negative -- Affirmed: -- Speculative Grade Liquidity Rating, affirmed at SGL-3 RATINGS RATIONALE The Ca Corporate Family Rating (CFR) reflects Forbes' weak cash flow generation, driven by declining demand from upstream exploration & production (E&P) companies, and elevated financial leverage. The rating also incorporates the heightened potential for a financial restructuring in the near term following the company's announcement it had entered into a forbearance agreement with its unsecured noteholders resulting from its failure to make its June 15, 2016 interest payment within the 30-day grace period. A pronounced, protracted downturn in oil prices since late 2014 and the resulting diminished demand for its services has materially weakened Forbes' credit metrics. While Forbes's credit profile benefits from the its low maintenance capital requirements, the company's small scale and operational concentration are limiting factors. Moody's said, "The SGL-3 Speculative Grade Liquidity Rating reflects our view of adequate liquidity through mid-2017. At March 31, Forbes had $78 million of balance sheet cash and $49 million of availability under its $90 million secured borrowing base revolving credit facility, net of $10.7 million posted letters of credit. The facility contains a springing covenant, which becomes effective if utilization exceeds $75 million. If initiated, the covenant would require maintenance of a fixed charge ratio greater than 1.1x. While we expect that Forbes will not be able to comply with the covenant through mid-2017, the company is not expected to utilize the facility to the extent the covenant would become effective. The credit facility matures July 2018." The negative outlook reflects the strong potential for a near-term restructuring of Forbes's unsecured notes on distressed terms. Ratings could be downgraded if Moody's view of recovery changes. Although not expected, ratings could be upgraded if the risk of restructuring abates. Alice, Texas-based Forbes Energy Services Ltd. (Forbes) is an independent oilfield services (OFS) company providing a wide range of well site services to oil and natural gas exploration and production companies to help develop and enhance production. Forbes' broad range of end-to-end services include Well Servicing and Fluid Logistics (62% and 38% of 2015 revenues, respectively.) Total revenue for 2015 was $244 million. FRYMIRE SERVICES: Cash Collateral Use Up to August 11 OK -------------------------------------------------------- Judge Stacey G. Jernigan of the U.S. Bankruptcy Court for the Northern District of Texas authorizes Frymire Services, Inc. to use cash collateral on an interim basis. The Debtor is indebted to Capital One, National Association for $960,000 borrowed under a $1 million revolving line of credit secured by non-Debtor-owned real estate, and $550,687.50 remaining due under a $742,500 term loan secured by cash, accounts, and other property. The Debtor seeks authorization to use cash collateral to pay only the ordinary and necessary operating expenses set forth in the Budget for the period beginning on the Petition Date through August 11, 2016. Judge Jernigan directed the Debtor to pay Capital One monthly adequate protection payments in the amount of $13,500, beginning on July 22, 2016. She granted Capital One replacement liens that are co-extensive with its pre-petition liens, in all currently owned or after-acquired property and assets of the Debtor, of the same kind or nature that Capital One had prepetition. The approved 21-day Budget provides for total cash disbursements in the amount of $870,666. The final hearing on the Debtor's Motion is scheduled on August 10, 2016 at 9:30 a.m. A full-text copy of Order, dated July 21, 2016, is available at https://is.gd/qGA2q2 Capital One, National Association is represented by: Stewart Spielman, Esq. Steven Holmes, Esq. MCGLINCHEY STAFFORD 301 Main Street, Suite 1400 Baton Rouge, LA 70801 Email: sspielman@mcglinchey.com sholmes@mcglinchey.com About Frymire Services, Inc. Frymire Services, Inc. filed a Chapter 11 bankruptcy petition (Bankr. N.D. Tex. Case No. 16-32814) on July 15, 2016. The petition was signed by George R. Frymire, president. Judge Stacey G. Jernigan presides over the case. The Debtor is represented by Bryan Christopher Assink, Esq., Mark A. Castillo, Esq., and Joshua Lee Shepherd, Esq., at Curtis Castillo, Esq. The Debtor estimated assets and debts at $1 million to $10 million at the time of the chapter 11 filing. FRYMIRE SERVICES: Taps Curtis Castillo as Legal Counsel ------------------------------------------------------- Frymire Services, Inc. seeks approval from the U.S. Bankruptcy Court for the Northern District of Texas to hire Curtis Castillo PC as its legal counsel. The firm will provide these services in connection with the Debtor's Chapter 11 case: (a) advise and consult with the Debtor concerning legal questions arising in administering, reorganizing or liquidating its estate; (b) assist in investigating the acts, conduct, assets and liabilities of the Debtor; (c) investigate and prosecute preference, fraudulent transfer and other causes of action; (d) take all necessary legal actions to preserve and protect the Debtor's estate; and (e) prepare legal papers and aid the Debtor in the reorganization process. The firm's professionals and their hourly rates are: Clerk/Paralegal $95 - $150 Junior Associates $175 - $375 Associates $175 - $375 Senior Attorneys $175 - $375 Shareholders $425 - $500 Mark Castillo, Esq., at Curtis Castillo, disclosed in a court filing that the firm is "disinterested" as defined in section 101(14) of the Bankruptcy Code. The firm can be reached through: Mark A. Castillo, Esq. Joshua L. Shepherd, Esq. Bryan C. Assink, Esq. Curtis Castillo PC 901 Main Street, Suite 6515 Dallas, Texas 75202 Tel: 214-752-2222 Fax: 214-752-0709 About Frymire Services Frymire Services, Inc. sought protection under Chapter 11 of the Bankruptcy Code (Bankr. N. D. Texas Case No. 16-32814) on July 15, 2016. The petition was signed by George R. Frymire, president. The case is assigned to Judge Stacey G. Jernigan. At the time of the filing, the Debtor estimated its assets and debts at $1 million to $10 million. GARY DEAN ROGERS: Bentwood Reserve Property Sale Approved --------------------------------------------------------- Judge Tony M. Davis of the U.S. Bankruptcy Court for the Western District of Texas, Austin Division, authorized Gary Dean Rogers to sell his interest in the 1.32 acres of unimproved real property at Lot 22, Blk 1, in Bentwood Reserve Subdivision, to David and Elizabeth Chambers for $70,000. The sale of the Unimproved Tract will be "as is, where, is" and free and clear of all liens, claims, encumbrances, and other interests. Wesley Crooks of Ranch Realty, as the broker to the Contract for the Debtor, will be paid a commission equal to 6% of the Purchase Price at closing, as set forth in the Contract and that 50% of such commission will be paid to Jerrie Woodford of J W Real Estate, the purchasers' broker. About Gary Dean Rogers Gary Dean Rogers -- aka G D Rogers, dba Rogers Construction, doing business as Rogers General Construction -- sought Chapter 11 protection (Bankr. W.D. Tex. Case No. 16-10404) on April 4, 2016. Wayne Kitchens, Esq. at Hughes Watters Askanase, LLP, serves as counsel. GCC-COURTYARD: Authorized to Use Cash Collateral Through August --------------------------------------------------------------- Judge Laura T. Beyer of the U.S. Bankruptcy Court for the Western District of North Carolina entered an Eighth Cash Collateral Order authorizing GCC-Courtyard, LLC to use cash collateral through Aug. 2016. The Court had previously authorized the Debtor to use cash collateral through June 29, with the consent of secured lender Fannie Mae, as assignee of Arbor Commercial Funding, LLC. Judge Beyer allowed the Debtor to use cash collateral only for ordinary and necessary business expenses. The approved monthly Budget projects expenses for the months of July and August 2016, as well as for subsequent months. The Budget provides for operating expenses in the amount of $63,315.25 for the month of July; $63,271.86 for the month of August; and $38,271.86 for subsequent months. The Budget also provides for Professional Fee Carve-out in the amount of $35,043.39 for the month of July; $35,000 for the month of August; and, $10,000 for subsequent months. Judge Beyer granted Fannie Mae a valid, perfected and continuing security interest in, and lien upon all post-petition assets of the Debtor, to the same extend and validity as the liens and encumbrances attached to the Debtor's assets pre-petition. Judge Beyer directed the Debtor to make monthly adequate protection payments to Fannie Mae in the amount of $9,236.86. A full-text copy of the Order, dated July 20, 2016, is available at https://is.gd/zjfedR About GCC-Courtyard, LLC. GCC-Courtyard, LLC filed a chapter 11 petition (Bankr. W.D.N.C. Case No. 15-31902) on Dec. 1, 2015. The petition was signed by George W. Courlas, manager. The Debtor is represented by Richard S. Wright, Esq., at Moon Wright & Houston, PLLC. The case is assigned to Judge Craig Whitley. The Debtor estimated total assets at $0 to $50,000 and total debts at $1 million to $10 million. GCC-LANDINGS: Authorized to Use Cash Collateral Through August -------------------------------------------------------------- Judge Laura T. Beyer of the U.S. Bankruptcy Court for the Western District of North Carolina entered an Eighth Cash Collateral Order authorizing GCC-Landings, LLC to use cash collateral through Aug. 2016. Judge Beyer authorized the Debtor to use cash collateral in the ordinary course of business for expenses specified in the Budget. The approved monthly Budget projects expenses for the months of July and August 2016, as well as for subsequent months. The Budget provides for operating expenses in the amount of $95,922.38 for the month of July; $96,106.60 for the month of August; and $66,106.60 for subsequent months. The Budget also provides for Professional Fee Carve-out in the amount of $39,815.78 for the month of July; $40,000 for the month of August; and, $10,000 for subsequent months. Judge Beyer ordered the Debtor to make monthly adequate protection payments to secured lender Fannie Mae, as assignee of Arbor Commercial Funding, in the amount of $15,819.60. Judge Beyer granted Fannie Mae a valid, perfected and continuing security interest in, and lien upon all post-petition assets of the Debtor, to the same extend and validity as the liens and encumbrances attached to the Debtor's assets pre-petition. A full-text copy of the Order, dated July 20, 2016, is available at https://is.gd/l9NAKk About GCC-Landings, LLC. GCC-Landings, LLC filed a chapter 11 petition (Bankr. W.D.N.C. Case No. 15-31903) on Dec. 1, 2015. The petition was signed by George W. Courlas, Manager. The Debtor is represented by Richard S. Wright, Esq., at Moon Wright & Houston, PLLC. The case is assigned to Judge Laura T. Beyer. The Debtor estimated total assets at $0 to $50,000 and total debts at $1 million to $10 million at the time of the filing. GCC-SHARON RIDGE: Court OKs Cash Collateral Use Through August -------------------------------------------------------------- Judge Laura T. Beyer of the U.S. Bankruptcy Court for the Western District of North Carolina entered an Eighth Cash Collateral Order authorizing GCC-Sharon Ridge, LLC to use cash collateral through August 2016. The Court had previously authorized the Debtor to use cash collateral through June 29, with the consent of secured lender Fannie Mae, as assignee of Arbor Commercial Funding, LLC. Judge Beyer allowed the Debtor to use cash collateral only for ordinary and necessary business expenses. The approved monthly Budget projects expenses for the months of July and August 2016, as well as for subsequent months. The Budget provides for operating expenses in the amount of $84,795 for the month of July; $84,301.51 for the month of August; and $49,301.51 for subsequent months. The Budget also provides for Professional Fee Carveout in the amount of $45,493.49 for the month of July; $45,000 for the month of August; and, $10,000 for subsequent months. Judge Beyer granted Fannie Mae a valid, perfected and continuing security interest in, and lien upon all post-petition assets of the Debtor, to the same extend and validity as the liens and encumbrances attached to the Debtor's assets pre-petition. Judge Beyer directed the Debtor to make monthly adequate protection payments to Fannie Mae in the amount of $11,977.29. A full-text copy of the Order, dated July 20, 2016, is available at https://is.gd/WE2QDn About GCC-Sharon Ridge, LLC. GCC-Sharonridge, LLC filed a chapter 11 petition (Bankr. W.D.N.C. Case No. 15-31904) on Dec. 1, 2015. The petition was signed by George W. Courlas, manager. The Debtor is represented by Richard S. Wright, Esq., at Moon Wright & Houston, PLLC. The case is assigned to Judge Laura T. Beyer. The Debtor estimated total assets at $0 to $50,000 and total debts at $1 million to $10 million at the time of the filing. GINGER OIL: Court Approves DIP Financing on a Final Basis --------------------------------------------------------- Judge Marvin Isgur issued a Final Order authorizing Ginger Oil Company to obtain post-petition financing from its parent corporation, Ginger Oil AB. Ginger Oil AB had agreed to provide the Debtor with post-petition DIP Financing. Independent Bank, the Debtor's primary secured creditor, had consented to the DIP Financing. The DIP Financing contains, among others, the following relevant terms: (a) Borrowing Mechanics: DIP Lender shall provide post-petition financing to the Debtor in an aggregate amount not to exceed $500,000. The initial draw of $290,000 has been approved by the DIP Lender. Additional draws will be made as needed for the Debtor to make expenditures set forth in the DIP Budget. (b) DIP Lender's Expenses: Reasonable legal and professional fees and expenses of DIP Lender, not to exceed $50,000, shall be paid by the Debtor and charged to the DIP Facility and/or paid by Ginger Oil AB. (c) Non-Default Interest Rate: 8% per annum; payable on a monthly basis within 30 days of billing by the DIP Lender. (d) Default Interest Rate: The default interest rate is equal to the non-default interest rate plus 2%. (e) Use of Proceeds: The proceeds of the DIP Financing shall be used in accordance with the budget approved by the DIP Lender, Independent Bank, and the Debtor. The proceeds may also be used to pay the DIP Lender's ongoing reasonable legal and other professional fees, the Debtor's legal fees and expenses as approved by the Court, and U.S. Trustee fees and court costs. (f) Maturity: Unless terminated sooner on account of a DIP Termination Event, the DIP Facility shall mature on the Effective Date of the Plan. If the DIP Facility is terminated prior to the Plan Effective Date on account of a DIP Termination Event, all unpaid interest and principal shall become immediately due and payable, without further notice or demand, on the date of such termination. The approved DIP Financing Budget provides for total disbursements in the amount of $500,000. The disbursements include, among others, payments for contingent capital needs, as well as payments to the lawyers of the Debtor and Independent Bank. Judge Isgur acknowledged that the DIP Financing has been proposed in good faith and at arms' length, and is necessary in order to preserve the assets of the Debtor's bankruptcy estate and facilitate confirmation and consummation of the Plan. He held that the terms of the proposed DIP Financing are fair, reasonable and adequate under all the circumstances of the case. A full-text copy of the Order, dated July 20, 2016, is available at https://is.gd/pZ5F6g Independent Bank is represented by: E. Lee Morris, Esq. MUNSCH HARDT KOPF & HARR, P.C. 500 N. Akard Street, Suite 3800 Dallas, TX 75201-6659 Telephone: (214) 855-7500 Email: lmorris@munsch.com About Ginger Oil Company Ginger Oil Company, engaged in the business of oil and gas exploration and development in Arkansas, Louisiana and Texas, filed a Chapter 11 bankruptcy petition (Bankr. S.D. Tex. Case No. 16-30678) on Feb. 4, 2016. The Debtor disclosed total assets of $29.27 million and total debts of $6.47 million. The petition was signed by William D. Neville as resident/director. Judge Marvin Isgur handles the case. Julie Mitchell Koenig, Esq., at Cooper & Scully, PC, serves as counsel to the Debtor. U.S. Trustee Judy A. Robbins said in Mar. 2016 that she was unable to appoint an official creditors committee. GOODRICH PETROLEUM: Committee Taps Opportune as Financial Advisor ----------------------------------------------------------------- The official committee of unsecured creditors of Goodrich Petroleum Corp. seeks approval from the U.S. Bankruptcy Court for the Southern District of Texas to hire Opportune LLP as its financial advisor. The committee tapped the firm to provide these services: (a) assist the committee in matters related to the restructuring of Goodrich and its affiliates; (b) review, monitor and analyze the Debtors' operations, financial condition, business plan, liquidity, strategy and operating forecast; (c) assist in reviewing financial information distributed by the Debtors to the committee; (d) assist in determining an appropriate go-forward capital structure for the Debtors; (e) attend meetings with and on behalf of the committee; (f) assist the committee in developing, evaluating, structuring, and negotiating the terms and conditions of any restructuring or plan of reorganization presented or offered; (g) review the lenders' collateral; (h) evaluate the Debtors' debt capacity; (i) perform a valuation of the Debtors' assets; (j) analyze financing, merger, divestiture, joint venture or investment transactions; (k) if requested, provide courtroom or deposition testimony; (l) assist the committee in analyzing any new debt or equity capital; and (m) provide other general restructuring assistance that the committee may deem necessary. Opportune will receive a fixed monthly fee of $100,000, and will earn a deferred restructuring fee of $750,000 in cash on the effective date of a restructuring transaction. The firm will also receive reimbursement for work-related expenses. Ryan Bouley, managing director of Opportune, disclosed in a court filing that the firm does not have any interest adverse to the Debtors' estate or any of their creditors. The firm can be reached through: Ryan Bouley Opportune LLP 711 Louisiana Street, Suite 3100 Houston, TX, 77002 Phone: 713-490-5050 Fax: 713-490-0355 About Goodrich Petroleum Goodrich Petroleum Corporation is an independent oil and natural gas company engaged in the exploration, development and production of oil and natural gas on properties primarily in (i) Southwest Mississippi and Southeast Louisiana, which includes the Tuscaloosa Marine Shale Trend, (ii) Northwest Louisiana and East Texas, which includes the Haynesville Shale, and (iii) South Texas, which includes the Eagle Ford Shale Trend. Goodrich Petroleum and its subsidiary Goodrich Petroleum Company, L.L.C. filed voluntary petitions on April 15, 2016, in the United States Bankruptcy Court for Southern District of Texas to pursue a pre-packaged Chapter 11 plan of reorganization. The Debtors have filed a motion with the Court seeking joint administration of the Chapter 11 Cases under the caption In re Goodrich Petroleum Corporation, et. al (Case No. 16-31975). Goodrich estimated $50 million to $100 million in assets and $500 million to $1 billion in liabilities. The petition was signed by Robert C. Turnham, Jr., president and chief operating officer. Bankruptcy Judge Marvin Isgur presides over the case. Bradley Roland Foxman, Esq., Garrick Chase Smith, Esq., Harry A. Perrin, Esq., David S. Meyer, Esq., and Lauren R. Kanzer, Esq., at Vinson & Elkins LLP, serve as the Debtors' counsel. Lazard Freres & Co. LLC, serves as the Debtors' investment banker while BMC Group, Inc., serves as notice, claims and balloting agent. The Office of the U.S. Trustee on April 27 appointed six creditors of Goodrich Petroleum Corporation to serve on the official committee of unsecured creditors. The Committee retained Akin Gump Strauss Hauer & Feld LLP as counsel. GROVE PLAZA PARTNERS: Wants to Use Cash to Pay for Leasing Fees --------------------------------------------------------------- Grove Plaza Partners, LLC asks the U.S. Bankruptcy Court for the Northern District of California for authorization to use cash collateral to the the extent of $21,985.41, to pay for leasing fees. The Debtor owns seven of 13 parcels of real property comprising the Grove Plaza shopping center located at 1151-1161 Walnut Street and 2404-2540 S. Grove Avenue in Ontario, Calif., The Property is managed and leased by Centers Dynamic, pursuant to a Management Agreement that it had executed with the Debtor. The Management Agreement provides for the payment of leasing fees for all new leases and non-optional renewals. The Debtor relates that two leases have been renewed and that the leasing fees due and owing are $21,985.41. The Debtor tells the Court that it has sufficient cash to pay the leasing fees. It further tells the Court that it does not presently request general authority to pay future leasing fees and will request for authority on a case-by-case basis as the need arises for the time being. The Debtor contends that continuing its regular payment of leasing fees preserves the status quo and continues the Debtor in the ordinary course of its business. The Debtor further contends that leasing of the Property is necessary, and payment of the leasing fees is in the best interests of the estate. The hearing on the Debtor's Motion is scheduled on August 19, 2016 at 10:00 a.m. A full-text copy of the Debtor's Motion, dated July 22, 2016, is available at https://is.gd/ygo0xx About Grove Plaza Partners, LLC. Headquartered in Redwood Shores, Cal., Grove Plaza Partners, LLC, filed for Chapter 11 bankruptcy protection (Bankr. N.D. Cal. Case No. 16-30531) on May 13, 2016, estimating its assets and liabilities at between $10 million and $50 million. The petition was signed by George A. Arce, Jr., manager. Reno F.R. Fernandez, Esq., at MacDonald Fernandez LLP, serves as the Debtor's bankruptcy counsel. The case is assigned to Judge Dennis Montali. GRUDEN ACQUISITION: Moody's Cuts Corporate Family Rating to B3 -------------------------------------------------------------- Moody's Investors Serviceb downgraded Gruden Acquisition, Inc.'s Corporate Family Rating (CFR) to B3 from B2 and its Probability of Default Rating (PDR) to B3-PD from B2-PD. In connection with this action, Moody's also downgraded the ratings on the company's senior secured first-lien term loan to B2 (LGD3) from B1 (LGD3) and its senior secured second-lien term loan to Caa2 (LGD5) from Caa1 (LGD5). The rating outlook is negative. The downgrade of Quality Distribution's CFR reflects the company's significant underperformance with respect to operating profitability and free cash flow generation relative to Moody's expectations at the time of the August 2015 leveraged buyout (LBO) of the company by Apax Partners. The sharp decline in performance experienced over the past three quarters in the QC Energy Resources business -- the company's Energy Logistics segment -- caused overall margins to contract substantially, due to both revenue declines and a demand driven shift to a less profitable business mix. Coupled with no debt reduction beyond required first lien term loan amortization, this caused debt leverage to increase to over 8.0x and interest coverage to deteriorate to below 0.5x for the 12 months ended March 31, 2016, compared with 5.9x and 1.6x, respectively, on a pro forma basis at the time of the LBO. The company's liquidity position has also weakened, with negative free cash flow generation in each of the last four quarters. Moody's expects free cash flow will remain negative on a full-year basis for fiscal 2016. The negative outlook reflects the potential for near-term margin pressure from diminished activity in North American energy markets, as well as uncertainty regarding the company's future plans for its Energy Logistics segment, which could involve additional sizeable restructuring charges. The outlook also reflects the likelihood that negative free cash flow generation (excluding asset sale proceeds) could persist beyond 2016 and remain close to breakeven or only slightly positive for 2017. In addition, and to a lesser extent, recent volatility in chemicals shipments may continue to weigh on 2016 operating results in the Chemical Logistics segment, which accounts for over 70% of the company's total sales. The downgrades of the ratings on the senior secured first- and second-lien term loans to B1 and Caa2, respectively, were a function of the one-notch downgrade of Quality Distribution's CFR. The following ratings were affected by these actions: Corporate Family Rating downgraded to B3 from B2; Probability of Default Rating downgraded to B3-PD from B2-PD; Senior secured first-lien term loan due 2022 downgraded to B2 (LGD3) from B1 (LGD3); Senior secured second-lien term loan due 2023 downgraded to Caa2 (LGD5) from Caa1 (LGD5); Outlook changed to negative from stable RATING RATIONALE Moody's said, "Quality Distribution's B3 CFR reflects the company's highly leveraged capital structure, with debt/EBITDA slightly above 8.0x as of March 31, 2016 and Moody's expectation that debt leverage will remain elevated over the next 12 to 18 months as the company slowly recovers from sharp declines in sales and profitability in 2015 (all metrics incorporate Moody's standard accounting adjustments). Despite expectations for some improvement in EBITDA, Moody's projects debt leverage to remain above 7.5x by the end of 2017 as debt reduction will be limited to mandatory annual term loan amortization of only $4.2 million. Also factored into the rating is the company's currently weak interest coverage of less than 0.5x for the trailing 12 month period, which Moody's projects will remain weak but gradually improve to closer to 1.0x over our forecast horizon. Quality Distribution's energy market exposure, while reduced to close to 10% as of 1Q16 from almost 20% at FYE 2014, is expected to continue to remain a drag on operating performance. However, Moody's notes that efforts to restructure the Energy Logistics business and reposition assets for use within its Chemical Logistics business will help to offset some of the recent margin contraction. Financial policy remains a rating constraint due to the company's private equity ownership, as well as the potential for second-lien debt repurchases at current discounted levels." Counterbalancing these risks is Quality Distribution's strong market position as the largest North American bulk chemicals logistics company, as well as positive longer-term fundamentals for the key end markets it serves within the broader Chemicals sector. The Quality Carriers business (domestic bulk chemicals) has historically been a relatively stable performer, and the company's higher margin Boasso/Intermodal segment (export/import bulk chemicals) -- which will benefit from its expansion into the UK through the recent Isotank Group acquisition -- continues to deliver positive results. Barriers to entry created by the significant cost and difficulty in replicating the company's extensive infrastructure will also help to protect its market share. Quality Distribution's flexible, variable cost, affiliate-based operating model would also provide some downside protection if market conditions were to weaken further. The company maintains an adequate liquidity profile, which will provide some financial flexibility as it continues to take measures restore stronger operating profitability and free cash flow generation. The ratings on the senior secured term loans reflect the overall probability of default for Quality Distribution, which Moody's rates B3-PD. The B2 rating on the first-lien term loan is one notch above the CFR, reflecting its senior position in the capital structure and the first-loss protection provided by $120 million of second-lien debt. The Caa2 rating on the second-lien term loan reflects the facility's lien subordination to approximately $515 million of more senior debt, which includes a $100 million asset-based revolving credit facility (unrated) that has a first-priority claim on the company's most liquid assets. An upgrade of Quality Distribution's ratings is unlikely over the next one to two years, given the company's recent deterioration in operating performance and credit metrics that are currently very weak compared with those of many similarly-rated industry peers. However, positive rating actions could be taken if the company demonstrates a strong positive trend in EBITDA growth and free cash flow generation. Debt/EBITDA trending below 5.5x and EBIT/interest expense above 1.5x could also result in an upgrade. The ratings could be downgraded if the company's liquidity profile deteriorates, either as a result of sustained negative free cash flow generation or diminished availability under its revolving credit facility. Increasing debt leverage or further declines in interest coverage could also result in negative rating actions. In addition, significant repurchases of debt at distressed prices could prompt further downgrades. Gruden Acquisition was formed to effectuate the acquisition of Quality Distribution, Inc., the parent company of Quality Distribution, LLC, by Apax Partners in August 2015. Quality Distribution, headquartered in Tampa, Florida, is the largest North American transporter of bulk liquid and dry bulk chemicals. The company is also a provider of intermodal tank container and depot services primarily through its wholly-owned subsidiary, Boasso America Corporation. The company also provides transportation services to the energy sector through its Energy Logistics business. Revenue for the 12 months ended March 31, 2016 totaled approximately $837 million. HAJ INC: Wants to Use Bank of the West's Cash Collateral -------------------------------------------------------- HAJ, Inc. dba Christenson Oil asks the U.S. Bankruptcy Court for the District of Oregon for authorization to use cash collateral. The Debtor says that it has no cash to continue operating, other than from the collection of its receivables. It further says that it needs to use cash collateral to pay its normal day-to-day operating expenses. The Debtor's receivables are Bank of the West's collateral. The Debtor owes Bank of the West approximately $994,579. The Debtor contends that the amount of cash collateral necessary to avoid harm is approximately $413,582, for four weeks, through August 14, 2016. The Debtor's proposed Budget covers a 15-week period, from the week beginning July 18, 2016 until the week beginning October 24, 2016. It provides for personnel expenses, operating expenses, and chapter 11 expenses in the total amount of $2,370,662. A preliminary hearing on the Debtor's Motion is scheduled on July 26, 2016 at 1:30 p.m. A full-text copy of the Debtor's Motion, dated July 21, 2016, is available at https://is.gd/06b7kv HAJ, Inc. dba Christenson Oil is represented by: John C. Rothermich, Esq. Charles C. Robinson, Esq. GARVEY SCHUBERT BARER 121 SW Morrison, 11th Floor Portland, OR 97204 Telephone: (503) 228-3939 Email: jrothermich@gbslaw.com crobinson@gsblaw.com About HAJ, Inc. dba Christenson Oil HAJ, Inc. dba Christensen Oil filed a chapter 11 petition (Bankr. D. Or. Case No. 16-32787) on July 18, 2016. The petition was signed by Lawrence W. Lesniak, CEO. The Debtor is represented by John Carten Rothermich, Esq., at Garvey Schubert Barer. The case is assigned to Judge Randall L. Dunn. The Debtor discloses total assets in the amount of $2.79 million and total liabilities in the amount of $1.72 million. HAPPYWORKS DAY CARE: Hires Nemeth & Associates as Counsel --------------------------------------------------------- Happyworks Day Care, Inc., seeks authorization from the U.S. Bankruptcy Court for the Northern District of Ohio to employ Nemeth & Associates, LLC as counsel. The Debtor requires Nemeth & Associates to: a. advise the Debtor of its rights, powers and duties as debtor and debtor in possession continuing to operate and manage his business and property; b. advise the Debtor concerning, and assist in the negotiation and documentation of financing agreements and related transactions; c. review the nature and validity of liens asserted against the Debtor’s property and advise the Debtor concerning the enforceability of such liens; d. advise the Debtor concerning the actions that the Debtor may take to collect and recover property for the benefit of the Debtor’s estate; e. prepare on behalf of the Debtor all necessary and appropriate applications, motions, pleadings, draft orders, notices, schedules and other documents, and review all financial reports to be filed in this chapter 11 case; f. advise the Debtor concerning, and prepare responses to, applications, motions, pleadings, notices and other papers that may be filed and served in this chapter 11 case; g. counsel the Debtor in connection with the formulation, negotiation and promulgation of plan(s) of reorganization and related documents; h. advise and assist the Debtor in connection with any disposition of assets; i. advise the Debtor concerning executory contract and unexpired lease assumptions, assignments and rejections and lease restructuring; and j. perform other legal services for and on behalf of the Debtor as may be necessary or appropriate in the administration of this chapter 11 case and the Debtor’s business, including advice and assistance to the Debtor with respect to debt restructuring and general matters. Nemeth & Associates will be paid at these hourly rates: Richard H. Nemeth, Principal $275 William F. Perry, Associate $275 Non-Attorney staff $55 Prior to the Petition Date, the Debtor paid to Nemeth & Associates, LLC a retainer in the amount of $10,000.00 for services to be rendered in connection with this case. In addition, the Debtor paid to Nemeth & Associates, LLC the sum of $1,717.00 to cover the filing fee in this case, which sum was applied at the time of filing. As of the Petition Date, all $10,000.00 of the Retainer remains unapplied. Nemeth & Associates will also be reimbursed for reasonable out-of-pocket expenses incurred. Richard H. Nemeth, principal of the firm of Nemeth & Associates, assured the Court that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtors and their estates. Nemeth & Associates may be reached at: Richard H. Nemeth Nemeth & Associates 526 Superior Ave., East, Suite 333 Cleveland, Ohio 44114 Tel: (216)502-1300 Fax: (216)503-1301 About Happyworks Day Care, Inc.   Happyworks Day Care, Inc., is a non-profit, low cost, quality childcare services provider for low income families living in the inner city of Cleveland since 1986.   The business ran smoothly and profitably from 1986 until 2014 under the general management of Judith M. Ballinger, its sole owner and former general manager. In early 2014, Ms. Ballinger suffered a stroke and heart attack and was confined to a hospital bed for most of the calendar year. In her absence, Happyworks was run by Ms. Ballinger granddaughter, who lacked the necessary skills to operate the business properly.   On July 9, 2014, Zions First National Bank, the debtor primary lender, filed a collection and foreclosure proceeding [Cuyahoga County Court of Common Pleas Case No. CV-14-829494]. A judgment was taken in that proceeding on August 12, 2015 and a sheriff's sale of one of the two buildings out of which the debtor conducts its business was scheduled for July 11, 2016.   To stay the sheriff's sale, Happyworks Day Care filed a Chapter 11 petition (Bankr. N.D. Ohio Case No. 16-13769) on July 9, 2016. Judge Jessica Price Smith presides.    Richard H. Nemeth, Esq., at Nemeth & Associates, LLC, serves as counsel to the Debtor. HASTINGS ENTERTAINMENT: To Begin Liquidation of Stores ------------------------------------------------------ Lillian Rizzo, writing for The Wall Street Journal Pro Bankruptcy, reported that more than 120 Hastings Entertainment stores are set to begin going-out-of-business sales after a pair of liquidators won court approval to buy its assets. According to the report, the joint venture between Hilco Merchant Resources LLC and Gordon Brothers Retail Partners received approval from a judge in the U.S. Bankruptcy Court in Wilmington, Del. The liquidation sales began on July 23, 2016, according to Gordon Brothers and Hilco. The two liquidators had set the floor for the auction with a stalking horse, or lead, bid received, the report related. Hilco and Gordon Brothers will pay Hastings 75% of the cost of inventory worth at least $110 million, which is an estimated $82.5 million, the report further related. The company has already closed affiliate MovieStop, which sells new and used movies primarily on the East Coast, the report said. Liquidation sales at the chain's roughly 40 stores began in mid-May and are expected to finish by the end of this month, the report added. About Draw Another Circle Draw Another Circle, LLC and four of its subsidiaries, namely, Hastings Entertainment, Inc., MovieStop, LLC, SP Images, Inc., and Hastings Internet, Inc. filed voluntary petitions under Chapter 11 of the Bankruptcy Code (Bankr. D. Del. Lead Case No. 16-11452) on June 13, 2016. As of the bankruptcy filing, Hastings operated 123 entertainment superstores, averaging approximately 24,000 square feet, principally in medium-sized markets located in 19 states, primarily in the Northwestern, Midwestern, and Southeastern United States, and had over 3,500 employees. As of the Petition Date, Atlanta-based MovieStop operated 39 destination locations in 10 states, primarily along the Eastern United States Coast. Headquartered in Franklin, Massachusetts, SP Images, Inc., is a distributor of sports and entertainment products and apparel. Hastings, MovieStop and SPI are each wholly-owned subsidiaries of DAC. Cooley LLP and Whiteford Taylor Preston, LLP serve as counsel to the Debtors. They tapped FTI Consulting as financial advisor, and Rust Consulting/Omni Bankruptcy as claims and noticing agent. Andrew Vara, acting U.S. trustee for Region 3, on June 21 appointed seven creditors of Draw Another Circle, LLC, to serve on the official committee of unsecured creditors. Lowenstein Sandler LLP serves as counsel to the Committee, while BDO USA, LLP, serves as its financial advisor. HECK ENTERPRISES: Can't Use British Petroleum Claim Proceeds ------------------------------------------------------------ Judge Douglas D. Dodd of the U.S. Bankruptcy Court for the Middle District of Louisiana issued an Order addressing Investar Bank's Motion, which sought to prohibit Heck Enterprises, Inc. from using cash collateral. Judge Dodd ordered the Debtor not to transfer, distribute, encumber or expend the proceeds of the Debtor's claim against British Petroleum, or any and all tax refunds which may be subsequently due to the Debtor, without further order of the Court, after notice and an opportunity for a hearing. Judge Dodd further ordered that any and all British Petroleum Proceeds and Tax Refunds will remain held in trust in accordance with the requirements of the Office of the U.S. Trustee. A full-text copy of Order, dated July 22, 2016, is available at https://is.gd/6hsNhl About Heck Enterprises, Inc. Heck Enterprises, Inc. sought protection under Chapter 11 of the Bankruptcy Code (Bankr. M. D. La. Case No. 16-10514) on April 29, 2016. The petition was signed by Wallace E. Heck, Jr., president and chief executive officer. The Debtor is represented by Noel Steffes Melancon, Esq., Barbara B. Parsons, Esq., and William E. Steffes, Esq., at Steffes, Vingiello & McKenzie, LLC. The case is assigned to Judge Douglas D. Dodd. At the time of the filing, the Debtor estimated its assets and debts at $1 million to $10 million. HEMISPHERE MEDIA: S&P Affirms 'B' CCR, Outlook Remains Stable ------------------------------------------------------------- S&P Global Ratings said that it affirmed its ratings on Coral Gables, Fla.-based Hemisphere Media Group Inc. and its subsidiaries, including the 'B' corporate credit rating on the company. The rating outlook remains stable. "The affirmation follows Hemisphere Media's continued growth in retransmission and subscriber fees, driven by stable organic subscriber growth and rate increases, despite continued economic headwinds in Puerto Rico," said S&P Global Ratings credit analyst Khaled Lahlo. The stable outlook reflects S&P's expectation that Hemisphere Media will maintain adjusted leverage below 5x over the next 12 months, preserve sufficient liquidity for operating needs, and continue to generate positive discretionary cash flow. S&P could lower its corporate credit rating on Hemisphere Media during the next 12-24 months if the company's adjusted leverage approaches 6x on a sustained basis and if its liquidity becomes strained due to an aggressive dividend repayment policy, a large debt-financed acquisition, or operational missteps the resulted in revenue declines. Although unlikely over the next year, given the company's short track record operating as a consolidated entity, S&P could consider an upgrade if it become convinced that Hemisphere Media will be able to achieve meaningful growth in its affiliate fees and advertising revenues at its cable networks--while maintaining its EBITDA margin at the current level and debt leverage at 4.5x or below; and if the company grows through an acquisition, such that it materially increases its scale and improves its business risk profile by diversifying away from its exposure to Puerto Rico's advertising environment. HEYL & PATTERSON: Committee Taps ACS as Financial Advisor --------------------------------------------------------- The official committee of unsecured creditors of Heyl & Patterson, Inc. seeks approval from the U.S. Bankruptcy Court for the Western District of Pennsylvania to hire Albert's Capital Services, LLC as its financial advisor. . The firm will provide these services to the committee in connection with the Debtor's Chapter 11 case: (a) advise and assist the committee in its analysis and monitoring of the operations of the Debtor; (b) analyze the Debtor's schedules of assets and liabilities and statements of financial affairs; (c) advise and assist the committee with respect to the Debtor's use of cash collateral, any proposed debtor-in- possession financing and cash flow projections; (d) monitor the Debtor's cash receipts and disbursements and advise the committee on any related issues if necessary; (e) analyze proposed expenditures; (f) monitor and evaluate the Debtor's performance and operating activities, and provide regular updates and recommendations; (g) advise and assist the committee and counsel in reviewing and evaluating any court motions, applications, or other forms of relief filed or to be filed by the Debtor and other parties; (h) prepare alternative business projections or plans of the Debtor's affiliated businesses if needed; (i) develop strategies to maximize recoveries from the Debtor's assets; (j) advise and assist the committee in identifying and reviewing any proposed asset sales or other transactions; (k) analyze potential recovery scenarios as well as assist with avoidance actions; (l) review and provide analysis of any plan of reorganization and disclosure statement relating to the Debtor; (m) advise and assist the committee in evaluating the Debtor's contractual arrangements; (n) attend committee meetings, court hearings and auctions if required; (o) assist the committee in evaluating the tax impact of any proposed transactions; (p) render other general business consulting or assistance that the committee or its counsel may deem necessary; and (q) provide expert testimony and other potential services. The standard hourly rates for the ACS professionals who will be involved in the case are: Edward Albert $285 John Rose $275 Support Staff $150 Edward T. Albert, II, managing director of Albert's Capital, disclosed in a court filing that the firm is a "disinterested person" as defined in section 101(14) of the Bankruptcy Code. The firm can be reached through: Edward T. Albert, II Albert's Capital Services, LLC 200 Dinsmore Ave. Pittsburgh, Pennsylvania 15205 Main Phone: (412) 376-4747 Mobile: (412) 977-1000 Fax: 1-(888) 815-7800 Email: EAlbert@AlbertCapitalMgmt.com About Heyl & Patterson Heyl & Patterson, Inc. sought protection under Chapter 11 of the Bankruptcy Code (Bankr. W.D. Pa. Case No. 16-21620) on April 29, 2016. The petition was signed by John R. Edelman, CEO. The case is assigned to Judge Carlota M. Bohm. The Debtor estimated both assets and liabilities in the range of $1 million to $10 million. HILLWINDS FAMILY: Court Allows Continued Use of Cash Collateral --------------------------------------------------------------- Judge Christopher J. Panos of the U.S. Bankruptcy Court for the District of Massachusetts authorized Hillwinds Family Limited Partnership to continue using cash collateral. Judge Panos authorized the Debtor to use cash collateral only to pay budgeted items with lender Avidia Bank's written consent for anything other than the payment of the U.S. Trustee's fee. A full-text copy of the Order, dated July 20, 2016, is available at https://is.gd/OdvTvh About Hillwinds Family Limited Partnership Hillwinds Family Limited Partnership's business is the rental of a large tract of commercial real estate located at 489 Neck Road, Lancaster, Mass. The Debtor is a "single asset real estate" entity as defined in 11 U.S.C. Sec. 101(51B). Hillwinds Family Limited Partnership filed for a chapter 11 petition (Bankr. D. Mass. Case No. 15-42424) on Dec. 14, 2015, estimating its assets and liabilities at less than $1 million. The petition was signed by Thomas C. Browne II, general partner. A copy of the petition is available at http://bankrupt.com/misc/mab15-42424.pdfat no charge. The Debtor is represented by Kevin C. McGee, Esq., at Matuzek & McGee in Worcester, Mass. The case is assigned to Judge Christopher J. Panos. HIPCRICKET INC: Court Narrows Claims in Suit vs mGage, Stansbury ---------------------------------------------------------------- In the case captioned HIPCRICKET, INC., Plaintiff, v. mGAGE, LLC and GLENN STANSBURY, Defendants, C.A. No. 11135-CB (Del. Ch.), the Court of Chancery of Delaware entered judgment as follows: (1) in defendants' favor on Claims 1-4 and 6-7 of the Complaint dismissing those claims with prejudice, and (2) in Hipcricket's favor on Claim 5 of the Complaint, entitling it to a permanent injunction. Applying the governing law of the state of Washington, the Court concluded that Hipcricket's material breach of the commission agreement rendered the non-solicitiation and confidentiality provisions in it unenforceable. For this reason, the Court entered judgment the defendants' favor for the claims Hipcricket has asserted that are based on the commission agreement. Hipcricket also sued the defendants for violating the Washington Uniform Trade Secrets Act. The Court concluded that Hipcricket has proven this claim and is entitled to a permanent injunction to prevent defendants from further misappropriating its trade secrets. A full-text copy of the Court's July 15, 2016 memorandum opinion is available at https://is.gd/0Szhxr from Leagle.com. Hipcricket, Inc. is represented by: Brian E. Farnan, Esq. Michael J. Farnan, Esq. FARNAN LLP 919 North Market St., 12th Floor Wilmington, DE 19801 Tel: (302)777-0300 Fax: (302)777-0301 Email: bfarnan@farnanlaw.com mfarnan@farnanlaw.com -- and -- Kenneth J. Rubinstein, Esq. Joseph M. Vann, Esq. Jackson S. Davis, Esq. COHEN TAUBER SPIEVACK & WAGNER P.C. The Graybar Building 420 Lexington Avenue, Suite 2400 New York, NY 10170 Tel: (212)586-5800 Fax: (212)586-5095 Email: krubinstein@ctswlaw.com jvann@ctswlaw.com jdavis@ctswlaw.com mGage, LLC and Glenn Stansbury are represented by: Stephen B. Brauerman, Esq. Vanessa R. Tiradentes, Esq. Sara E. Bussiere, Esq. BAYARD, P.A. 222 Delaware Avenue, Suite 900 Wilmington, DE 19801 Tel: (302)655-5000 Fax: (302)658-6395 Email: sbrauerman@bayardlaw.com vtiradentes@bayardlaw.com sbussiere@bayardlaw.com -- and -- Peter F. Schoenthaler, Esq. Bryan L. Baysinger, Esq. THE SCHOENTHALER LAW GROUP 400 Interstate North Pkwy., S.E. Suite 1500 Atlanta, GA 30339 Tel: (404)855-3315 Fax: (404)891-6120 Email: blb@pfslawgroup.com About Hipcricket Inc. Headquartered in Bellevue, Washington, Hipcricket, Inc., formerly known as Augme Technologies, is a publicly held Delaware corporation. Hipcricket is in the business of providing end-to-end, data-driven mobile advertising and marketing solutions through its proprietary AD LIFE software-as-a service platform a proprietary, mobile engagement platform for businesses to communicate with customers through cellphones, tablets and other mobile devices. The Company had 77 full-time employees as of the bankruptcy filing. Hipcricket sought Chapter 11 protection (Bankr. D. Del. Case No. 15-10104) on Jan. 20, 2015, with a deal to sell its assets. The Debtor tapped Pachulski Stang Ziehl & Jones LLP as counsel, Canaccord Genuity Inc. as investment banker, Perkins Coie LLP as special corporate counsel, and Omni Management Group, LLC, as claims and noticing agent. As of Jan. 20, 2015, the Company had total assets of $16.8 million and liabilities of $12.06 million. The Debtor filed plan of reorganization sponsored by ESW Capital, LLC. The Debtor and ESW Capital negotiated a replacement postpetition financing facility, providing up to $4.5 million in financing, on substantially similar terms as the DIP Facility provided by SITO Mobile. The U.S. Trustee for Region 3 appointed five creditors to serve on the official committee of unsecured creditors. The Committee retained Cooley LLP as lead counsel, Pepper Hamilton LLP as Delaware counsel, and Getzler Henrich & Associates, LLC, as financial advisor. HUGHES SATELLITE: S&P Lowers Rating on Sr. Sec. Notes to 'BB+' -------------------------------------------------------------- S&P Global Ratings lowered its issue-level rating on Englewood-Colo.-based satellite services provider Hughes Satellite Systems Corp.'s (HSS) senior secured notes to 'BB+' from 'BBB-'. S&P also revised its recovery rating to '2' from '1'. The '2' recovery rating indicates S&P's expectation for substantial (70%-90%; upper half of the range) recovery of principal for lenders in the event of a payment default. The lower issue-level rating reflects the additional amount of secured debt in the capital structure following the company's announcement that it has increased its notes issuance to $1.5 million, consisting of $750 million of secured notes and $750 million of unsecured notes. S&P affirmed its 'BB-' issue-level rating on HSS's senior unsecured notes. The recovery rating remains '5', indicating S&P's expectation for modest (10%-30%; lower half of the range) recovery of principal in the event of a payment default. The 'BB' corporate credit rating is unchanged and the outlook remains stable. The stable outlook reflects S&P's expectation for low- to mid-single-digit percent revenue growth over the next few years, driven by the company's satellite-broadband segment. S&P expects net adjusted leverage to be around 2x in 2016, but do not expect the company to materially improve its credit metrics in the near term due to its elevated level of capital spending. RECOVERY ANALYSIS Key analytical factors -- S&P's default scenario contemplates the company's satellite- based communications services facing weak demand, pricing pressure, and higher operating expense in the currently faster-growing consumer and small business segment. The default would likely be the result of competition from lower-cost terrestrial network options and high operating costs associated with near-term launches. -- S&P has valued the company on a going-concern basis using a 5x multiple of S&P's projected emergence EBITDA of $440 million to arrive at a gross enterprise value of $2.2 billion. S&P's EBITDA at emergence reflects the higher amount fixed charges as a result of the company's notes issuance. Simulated default assumptions -- Simulated year of default: 2021 -- EBITDA at emergence: $440 million -- EBITDA multiple: 5x Simplified waterfall -- Net enterprise value (after 5% in administrative costs): $2.09 billion -- Valuation split in % (obligors/nonobligors): 90/10 -- Priority claims: $326 million -- Collateral value available to secured creditors: $1.58 billion -- Senior secured debt: $ 1.79 billion -- Recovery expectation: 70%-90% (upper half of the range) -- Collateral value available to unsecured claims: $209 million -- Senior unsecured debt and pari-passu claims: $1.95 billion -- Recovery expectation: 10%-30% (lower half of the range) Note: All debt amounts include six months of prepetition interest. RATINGS LIST Hughes Satellite Systems Corp. Corporate Credit Rating BB/Stable/-- Downgraded; Recovery Rating Revised Hughes Satellite Systems Corp. To From Senior Secured $750 mil 5.25% notes due 2026 BB+ BBB- Recovery Rating 2H 1 $1.1 bil 6.50% notes due 2019 BB+ BBB- Recovery Rating 2H 1 Affirmed; Recovery Rating Unchanged Hughes Satellite Systems Corp. Senior Unsecured $750 mil 6.625% notes due 2026 BB+ BBB- Recovery Rating 5L 5L $900 mil 7.625% notes due 2021 BB+ BBB- Recovery Rating 5L 5L IMPLANT SCIENCES: Platinum Partners, et al., Hold 4.9% Stake ------------------------------------------------------------ In an amended Schedule 13D filed with the Securities and Exchange Commission, Platinum Partners Value Arbitrage Fund L.P., Platinum Management (NY) LLC, DMRJ Group LLC, Montsant Partners, LLC and Mark Nordlicht disclosed that they beneficially owned 3,943,378 shares of common stock of Implant Sciences Corporation. The shares of Common Stock beneficially owned by the Reporting Persons represent 4.99% percent of the outstanding shares of Common Stock of Impant Sciences. The 4.99% calculation was based on the 79,025,620 shares of Common Stock reported by the Issuer as being outstanding as of May 6, 2016, as stated by the Issuer in its quarterly report on Form 10-Q for the quarterly period ended March 31, 2016. Mark Nordlicht disclaims the beneficial ownership with respect to any shares of Common Stock other than the shares owned directly and of record by those Reporting Persons. A full-text copy of the regulatory filing is available at: https://is.gd/f6BTKi About Implant Sciences Implant Sciences Corporation (OBB: IMSC.OB) -- http://www.implantsciences.com/-- develops, manufactures and sells sensors and systems for the security, safety and defense (SS&D) industries. As of March 31, 2016, the Company had $15.6 million in total assets, $100 million in total liabilities, and a total stockholders' deficit of $84.6 million. "Despite our current sales, expense and cash flow projections and Marcum LLP, in Boston, Massachusetts, issued a "going concern" qualification on the consolidated financial statements for the year ended June 30, 2015, citing that the Company has had recurring net losses and continues to experience negative cash flows from operations. As of Sept. 15, 2015, the Company's principal obligation to its primary lenders was approximately $65,046,000 and accrued interest of approximately $15,393,000. The Company is required to repay all borrowings and accrued interest to these lenders on March 31, 2016. These conditions raise substantial doubt about its ability to continue as a going concern. INFOGROUP INC: S&P Raises Rating on Sr. Sec. Debt to 'B' -------------------------------------------------------- S&P Global Ratings said that it raised its issue-level rating on Omaha, Neb.-based Infogroup Inc.'s senior secured debt to 'B' from 'B-' and revised the recovery rating to '2' from '3'. The '2' recovery rating indicates S&P's expectation for substantial (70%-90%; lower half of the range) recovery of principal in the event of a payment default. At the same time, S&P affirmed its 'B-' corporate credit rating on the company. The rating outlook remains stable. "The 'B-' corporate rating on Infogroup reflects the company's smaller scale and exposure to cyclical marketing spending, the secular pressure on its traditional marketing services, and our expectation for modest cash flow deficits in 2016--mainly due to the nonrecurring legacy tax penalty payment (roughly $20 million in 2016)," said S&P Global Ratings credit analyst Heidi Zhang. The stable rating outlook reflects S&P's expectation that Infogroup will have continued revenue and EBITDA growth, modest discretionary cash flow deficits (including one-time legacy tax penalty payments) in 2016, and an at least 10% margin of compliance with its maintenance financial covenants. S&P could raise its corporate credit rating on Infogroup if the company reduces leverage to below 5x on a sustained basis, if it generates more than $10 million of discretionary cash flow through EBITDA growth, and if S&P believes there will be adequate liquidity over the next 12 months. S&P could lower the rating if competitive pressure and customer attrition cause the company's covenant headroom to decline to less than 10% or discretionary cash flow to deteriorate from S&P's modest discretionary cash flow deficit projection for 2016. INFOMOTION SPORTS: Cash Collateral Use Approved throgh Aug. 31 -------------------------------------------------------------- Joan N. Feeney of the U.S. Bankruptcy Court for the District of Massachusetts entered an order last week authorizing InfoMotion Sports Technologies, Inc. -- through Aug. 31, 2016 -- to use cash collateral pledged to repay secured prepetition obligations to Bridlespur Partners Two, LLC, Day Capital Group, LLC, and Wilshire Partners III, LLC. The Debtor is pursuing a sale of its business assets and intellectual property and hopes to complete the sale by the end of August. About InfoMotion Sports Technologies, Inc. InfoMotion Sports Technologies, Inc. –- http://www.infomotionsports.com/-- sought chapter 11 protection (Bankr. D. Mass. Case No. 16-10724) on Mar. 1, 2016. The petition was signed by Michael Crowley, chief executive officer. The Debtor is represented by Warren E. Agin, Esq., at Swiggart & Agin, LLC, in Boston. The case is assigned to Judge Joan N. Feeney. At the time of the filing, the Debtor estimated its assets and debts at less than $10 million. INMOBILIARIA BAFCO: Plan Proposes to Pay Creditors in Full ---------------------------------------------------------- Inmobiliaria Bafco, Inc., on July 19 filed a Chapter 11 plan of reorganization, which proposes to pay all its creditors in full. The plan filed on July 19 with the U.S. Bankruptcy Court for the District of Puerto Rico provides for a 100% payment to all creditors of Inmobiliaria, including its general unsecured creditors in Class 5, which hold $97,830 in claims. The proposed plan will be funded through Inmobiliaria's assets, surrendering to Banco Popular de Puerto Rico the Parkside Office Building located in Pueblo Viejo Ward, Guaynabo, Puerto Rico. The property guarantees the loan, which the bank provided to the company. A copy of the plan outline is available for free at https://is.gd/kayuzK About Inmobiliaria Bafco Inmobiliaria Bafco, Inc., a single asset real estate, filed a Chapter 11 bankruptcy petition (Bankr. D.P.R. Case No. 16-02642) on April 4, 2016. Fernando Batlle, president, signed the petition. The Debtor listed total assets of $13.4 million and total debt of $12.05 million. Judge Mildred Caban Flores is assigned to the case. J & N ACQUISITIONS: Court Allows 60-Day Use of Cash Collateral -------------------------------------------------------------- Judge Paul G. Hyman, Jr., of the U.S. Bankruptcy Court for the Southern District of Florida authorized J & N Acquisitions, Inc. to use cash collateral. The Debtor is authorized to use cash collateral for 60 days following the entry of the Court's Order, or until September 18, 2016. Bank of America has a valid, perfected, first-priority blanket lien on all of the Debtor's real property and accounts. The Small Business Administration has a valid, perfected, first-priority blanket lien on all of the Debtor's personal property, including inventory, equipment, machinery, and accounts receivable. Judge Hyman granted Bank of America and The Small Business Administration a perfected post-petition security interest and lien in, to and against the Debtor's cash collateral and all of the Debtor's assets, in the same priority, validity and extent that they held in such assets pre-petition. Judge Hyman authorized the Debtor to use cash collateral to pay for all its post-petition expenses in the ordinary course of business. He directed the Debtor to continue making monthly adequate protection payments of $8,686. A full-text copy of the Order, dated July 20, 2016, is available at https://is.gd/yuaTq7 About J & N Acquisitions, Inc. Headquartered in Port St. Lucie, Florida, J & N Acquisitions, Inc., dba Kids Place filed for Chapter 11 bankruptcy protection (Bankr. S.D. Fla. Case No. 15-30152) on Nov. 16, 2015, listing $1.14 million in total assets and $2.15 million in total liabilities. The petition was signed by Janice Williams, CEO. Judge Paul G. Hyman, Jr., presides over the case. Malinda L Hayes, Esq., at Markarian Frank White-Boyd & Hayes serves as the Debtor's bankruptcy counsel. JOHN Q. HAMMONS: Court Allows Cash Collateral Use ------------------------------------------------- Judge Robert D. Berger of the U.S. Bankruptcy Court for the District of Kansas issued an amended Order, authorizing the Debtors to use cash collateral. Judge Berger acknowledged that the Debtors' operations are such that they have sufficient cash flow to continue to pay their secured lenders their regular monthly payment under the terms of their loan documents. Judge Berger authorized the Debtors to use cash collateral to pay for the expenses listed in the approved Budget, which include expenditures for the operation of the hotel properties, non-hotel properties owned by the Trust, as well as capital expenditures necessary to maintain the condition of the hotels and non-hotel properties and additionally remain in compliance with the various hotel franchisors. Judge Berger directed the Debtors to continue paying all franchise fees and reimbursable expenses due to Marriott International, Inc., Holiday Hospitality Franchising LLC, HLT Franchise LLC, and The Sheraton, LLC, arising under any franchise agreements and/or related documents. Judge Berger granted each secured lender replacement liens against its collateral and any proceeds therefrom, with the same priority as existed prior to the Commencement Date. The Debtors related that they will request that the final order permitting the use of cash collateral continue in effect until September 20, 2016, at the hearing for the final order approving the use of cash collateral. A hearing to consider issues raised by SFI Belmont LLC in its limited objection, is scheduled on July 25, 2016 at 1:00 p.m. An omnibus hearing is scheduled on September 26, 2016, in the Debtors' chapter 11 cases. A full-text copy of the Order, dated July 20, 2016, is available at https://is.gd/87R07r About John Q. Hammons Fall 2006, LLC. Springfield, Mo.-based John Q. Hammons Hotels & Resorts (JQH) – http://www.jqhhotels.com/-- is a private, independent owner and manager of hotels in the United States, representing brands such as: Marriott, Hilton, Embassy Suites by Hilton, Sheraton, IHG, Chateau on the Lake Resort / Spa & Convention Center, and Plaza Hotels Collection. It has portfolio of 35 hotels representing approximately 8,500 guest rooms/suites in 16 states. John Q. Hammons Hotels & Resorts on June 27, 2016, disclosed that the family of companies, the Revocable Trust of John Q. Hammons, and their related affiliates, have filed voluntary petitions (Bankr. D. Kan. Case No. 16-21139 to Case No. 16-21208) to restructure under Chapter 11 of the U.S. Bankruptcy Code. The Debtors are represented by Mark A. Shaiken, Esq., Mark S. Carder, Esq., and Nicholas Zluticky, Esq., at Stinson Leonard Street LLP, in Kansas City, Missouri. The Debtors conflict counsel is Victor F Weber, Esq., at Merrick Baker and Strauss PC, in Kansas City, Missouri. At the time of filing, the Debtors had $100 million to $500 million in estimated assets and $100 million to $500 million in estimated liabilities. The petitions were signed by Greggory D Groves, vice president. The cases are assigned to Judge Robert D. Berger. The Revocable Trust of John Q. Hammons, John Q. Hammons Hotels and related companies are scheduled to go to trial July 26 in a dispute stemming from a 2005 agreement in which entities associated with Jonathan Eilian loaned Hammons $300 million. LEAP FORWARD GAMING: Cash Collateral Use on Interim Basis OK ------------------------------------------------------------ Judge Bruce T. Beesley of the U.S. Bankruptcy Court for the District of Nevada authorized Leap Forward Gaming, Inc. to use cash collateral, on an interim basis, pursuant to a stipulation between the Debtor, Macquarie Trading US, LLC, and MIHI, LLC. Judge Beesley acknowledged that the Debtor's use of cash collateral on an interim basis is in the best interests of the Debtor's estate and its creditors. He further acknowledged that its implementation will, among other things, provide the Debtor with the necessary liquidity to sustain the operation of its business and enhance its prospects for a successful sale and liquidation to maximize creditor recoveries. The final hearing on the Debtor's Motion is scheduled on August 1, 2016 at 10:00 a.m. The deadline for the filing of objections or responses to the Debtor's Motion is set on July 28, 2016. A full-text copy of the Order, dated July 21, 2016, is available at https://is.gd/RYXGMW About Leap Forward Gaming, Inc. Leap Forward Gaming, Inc. filed a chapter 11 petition (Bankr. D. Nev. Case No. 16-50850) on July 8, 2016. The petition was signed by Darby Bryan, CFO/Controller. The Debtors are represented by Jeffrey L. Hartman, Esq., at Hartman & Hartman. The case is assigned to Judge Bruce T. Beesley. The Debtor disclosed assets of $2.46 and debts of $26.02 million at the time of the filing. LEAP FORWARD: Selling Personal Property for $8.5M to IGT -------------------------------------------------------- Leap Forward Gaming, Inc., asks the U.S. Bankruptcy Court for the District of Nevada to authorize the sale of personal property to International Game Technology for up to $8,500,000, and approve the settlement and compromise of disputed claims. A hearing for the Motion is set for Aug. 29, 2016 at 2 p.m. In 2015, IGT filed a civil action against LFG, Saffari, Bruce Cunningham and Perry Cobb in the United States District Court in Las Vegas ("IGT Civil Action") for alleged misappropriation of trade secrets. LFG and IGT have entered into the Asset Purchase Agreement ("APA") which accomplishes a sale of LFG's asset and resolves the IGT Civil Action. The APA contains mutual releases between IGT and LFG. Under the APA, LFG sells to IGT these assets: (a) All computers (and related hardware, software and data bases), equipment and other fixed assets, in each case, owned by Seller and used for, held for use for, or related to, the Products, all of which are listed on Schedule 1.1(a). (b) All inventories, including parts, work in process, and finished goods owned by Seller and used or useful in connection with the Products. (c) All data and records, including books and records (other than minute books and records of directors' and shareholders' meetings), computer software, vendor lists, designs, manuals, warranties, customer lists, credit information, processes, formulae, proprietary rights, know-how and other similar intangible property and rights owned by Seller and relating to the Products. (d) All cost sheets, bills of material, pricing information, part information, technical information, customer data, engineering data, inspection data, production data, blueprints and specifications, drawings, licenses, license agreements, formulae, processes, trade secrets, software (including documentation and source code) of and related to the Products, in each case, owned by Seller. (e) All proprietary rights, know-how and other information related to the Products not described in subsection 1.1(e) above, in each case, which are owned, licensed or otherwise used by Seller. (f) The trademarks and trademark applications, tradenames, licenses, copyrights and applications and all similar rights owned by Seller and related to the Products listed on Schedule 1.1 (f). (g) All goodwill as a going concern with respect to the Purchased Assets. (h) The patents listed on Schedule 1.1(h). (i) Such other assets that are licensed or otherwise used by Seller necessary to deliver the Products to existing and potential customers of Buyer ("Third Party Assets and Licenses"). The Third Party Assets and Licenses are listed on Schedule 1.1(i). (j) The books and records of Seller relating to subsection 1.1 (a) through (i) above. At the Closing, which is defined as 15 days after entry of an Order approving the Sale Motion, IGT will pay LFG the sum of $2,500,000 cash which will be held pending further order of the Court. The security interest in favor of MIHI LLC, which holds a security interest in the property, will attach to the proceeds of sale. In addition, the APA provides for an Earn Out of up to $6,000,000 in additional purchase price, all of which is also subject to the security interest in favor of MIHI. Attorney for the Debtor: Jeffrey L. Hartman, Esq. HARTMAN & HARTMAN 510 West Plumb Lane, Suite B Reno, Nevada 89509 Telephone: (775) 324-2800 E-mail: notices@bankruptcyreno.com About Leap Forward Gaming Leap Forward Gaming, Inc., sought Chapter 11 protection (Bankr. D. Nev. Case No. 16-50850) on July 8, 2016. Judge Bruce T. Beesley is assigned to the case. The Debtor estimated assets of $2.46 million and $26.02 million in debt. Jeffrey L Hartman, Esq., at Hartman & Hartman, serves as the Debtor's counsel. The petition was signed by Darby Bryan, CFO/Controller. LEHMAN BROTHERS: Syncora Guarantee Settles Proof of Claim --------------------------------------------------------- Syncora Holdings Ltd. on July 22, 2016, disclosed that its wholly owned, New York financial guarantee insurance subsidiary, Syncora Guarantee Inc. ("SGI"), has reached an agreement in principle for the settlement of its sole existing claim and related litigation with Lehman Brothers Holdings Inc. and Structured Asset Securities Corporation ("Sasco"). If consummated, the terms of the settlement will resolve all claims in respect of SGI's proof of claim filed on January 13, 2010, against Lehman Brothers Holdings Inc. and Sasco in the United States Bankruptcy Court for the Southern District of New York, relating to the GreenPoint Mortgage Funding Trust 2006-HE1 transaction, in return for an allowed unsecured claim of $37 million in the Lehman bankruptcy estate. In the Notice Regarding Tenth Distribution Pursuant to The Modified Third Amended Joint Chapter 11 Plan of Lehman Brothers Holdings Inc. And Affiliated Debtors filed with the bankruptcy court on June 9, 2016, the Lehman bankruptcy estate is currently projecting cumulative payments of approximately 36 cents on the dollar to be paid on allowed unsecured claims, but that projection is subject to change. The settlement remains subject to final definitive documentation. No assurances can be made that such final definitive documentation will be entered into. If consummated, the settlement is expected to increase SHL's GAAP net income and shareholders' equity by the amount ultimately paid by the Lehman bankruptcy estate and is expected to have the same effect on SGI's statutory-basis net income and policyholders' surplus. This settlement is separate and distinct from the U.S. Bank National Association, as Indenture Trustee v. GreenPoint Mortgage Funding, Inc. action, with respect to, among other things, alleged breaches of representations and warranties by GreenPoint, which remains pending in state court. About Syncora Holdings Ltd. Syncora Holdings Ltd. -- http://www.syncora.com/-- is a Bermuda-domiciled holding company. Each of Syncora Guarantee Inc. and Syncora Capital Assurance Inc. are wholly owned subsidiaries of Syncora Holdings Ltd. About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers has been a leader in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Lehman Brothers filed for Chapter 11 bankruptcy Sept. 15, 2008 (Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition disclosed US$639 billion in assets and US$613 billion in debts, effectively making the firm's bankruptcy filing the largest in U.S. history. Several other affiliates followed thereafter. Affiliates Merit LLC, LB Somerset LLC and LB Preferred Somerset LLC sought for bankruptcy protection in December 2009. The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq Bankruptcy Solutions serves as claims and noticing agent. Dennis F. Dunne, Esq., Evan Fleck, Esq., and Dennis O'Donnell, Esq., at Milbank, Tweed, Hadley & McCloy LLP, in New York, serve as counsel to the Official Committee of Unsecured Creditors. Houlihan Lokey Howard & Zukin Capital, Inc., is the Committee's investment banker. On Sept. 19, 2008, the Honorable Gerard E. Lynch of the U.S. District Court for the Southern District of New York, entered an order commencing liquidation of Lehman Brothers, Inc., pursuant to the provisions of the Securities Investor Protection Act (Case No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as trustee for the SIPA liquidation of the business of LBI. The Bankruptcy Court approved Barclays Bank Plc's purchase of Lehman Brothers' North American investment banking and capital markets operations and supporting infrastructure for US$1.75 billion. Nomura Holdings Inc., the largest brokerage house in Japan, purchased LBHI's operations in Europe for US$2 plus the retention of most of employees. Nomura also bought Lehman's operations in the Asia Pacific for US$225 million. Lehman emerged from bankruptcy protection on March 6, 2012, more than three years after it filed the largest bankruptcy in U.S. history. The Chapter 11 plan for the Lehman companies other than the broker was confirmed in December 2011. * * * In October 2015, Lehman made its eighth distribution to creditors, bringing Lehman's total distributions to unsecured creditors to approximately $105.4 billion including (1) $77.2 billion of payments on account of third-party claims, which includes non-controlled affiliate claims and (2) $28.2 billion of payments among the Lehman Debtors and their controlled affiliates. As of September 2015, the trustee in charge of LBI has returned around $7.65 billion to the defunct brokerage's unsecured creditors, a recovery of about 35 cents on the dollar. LENNAR CORP: Moody's Hikes Corporate Family Rating to Ba1 --------------------------------------------------------- Moody's Investors Service upgraded the ratings of Lennar Corporation ("Lennar"), including its Corporate Family Rating to Ba1 from Ba2, its Probability of Default Rating to Ba1-PD from Ba2-PD, and all of the company's existing series of senior unsecured notes and convertible senior notes to Ba1 from Ba2. In the same rating action, Moody's also affirmed Lennar's speculative grade liquidity rating at SGL-1. The rating outlook is stable. The upgrade reflects Moody's view that Lennar is adopting a financially prudent business strategy after a number of years of investing in new asset classes and structures that kept debt leverage stubbornly high. The company is now reducing its debt leverage and generating positive cash flow through moderation in its land spend and by either reduction in its investments in new ventures or by taking capital out of these ventures. By fiscal year-end 2016, Moody's expects Lennar's debt leverage will be in the low 40% range, which is strong for a Ba1 credit and adds to its outperformance in earnings growth and gross margins. The stable outlook reflects Moody's expectation that Lennar's key credit metrics will strengthen further in the next 12-18 months. The following rating actions were taken: Corporate Family Rating, upgraded to Ba1 from Ba2; Probability of Default, upgraded to Ba1-PD from Ba2-PD; Existing senior unsecured notes, upgraded to Ba1, LGD4 from Ba2, LGD4; Existing convertible senior notes, upgraded to Ba1, LGD4 from Ba2, LGD4; Existing senior unsecured shelf registrations, upgraded to (P)Ba1 from (P)Ba2; Speculative grade liquidity rating, affirmed at SGL-1; Ratings outlook is stable. RATINGS RATIONALE The Ba1 corporate family rating reflects the company's declining debt leverage and its effective execution of the "soft pivot" strategy, which is enabling it to generate its first positive cash flow in six years through reduction in the number of years supply of land owned. The rating also considers Lennar's superior gross margins; its exceptionally strong earnings performance; the substantial tangible equity base; and robust liquidity. In addition, the company has successfully managed its investments in new asset classes that are different from, albeit related to, more traditional homebuilding activities. Moreover, Moody's expects Lennar will manage its businesses with financial prudence going forward, focusing on debt reduction and eventual reversion to a pure homebuilding business model. At the same time, Lennar's ratings incorporate its propensity to invest in different asset classes and structures compared to more traditional homebuilders. While these investments can and do generate solid returns and cash, especially during growth periods, they can also result in sizable write downs, considerable use of management time, and cash drains, as the joint venture operations did during the recent downturn. Lennar's SGL-1 liquidity is supported by its $601 million of unrestricted homebuilding cash at May 31, 2016; by its expected generation of positive cash flow from operations in fiscal 2016; by its $104 million of unrestricted cash at Rialto; by the availability of about $1 billion under its $1.44 billion committed senior unsecured revolving credit facility due in June 2019 (that had $375 million drawn and $19 million of outstanding letters of credit at May 31, 2016), and by the substantial headroom under its financial maintenance covenants. The revolving credit facility requires the company to maintain compliance, as of May 31,2016 , with minimum tangible net worth of $2.8 billion, maximum net debt leverage of 65.0%, and either a minimum 1.0x liquidity coverage of last 12 months interest incurred or a trailing 12 months interest coverage of 1.5x. Actuals for these covenants, as calculated per the credit agreement, were $4.9 billion, 47% and 2.22x, respectively. What Could Change the Rating - Up First, because of the substantial volatility exhibited by the industry in the past, Lennar must generate considerable headroom relative to minimum investment grade credit metrics, namely adjusted debt/capitalization of well below 40%, EBIT coverage of interest considerably higher than 6x, and GAAP gross margins in the mid-to-high 20% range. In addition, Lennar must convince Moody's that it is serious about wanting the investment grade rating and would avoid actions (such as large share repurchases, large debt-financed acquisitions, and other creditor-unfriendly activities) that could jeopardize the investment grade rating. Finally, Moody's would need to feel confident that Lennar's metrics could withstand a financial shock without sinking to low spec grade type levels. What Could Change the Rating - Down if the economic backdrop suddenly and significantly were to take a turn for the worse, and the company's key credit metrics begin to deteriorate significantly; If the company's adjusted gross homebuilding debt leverage were to increase above 50% on a sustained basis; and/or If cash flow generation were to become significantly negative for a prolonged period of time without an offsetting and sufficient increase in earnings. Founded in 1954 and headquartered in Miami, Florida, Lennar is the country's second largest homebuilder. The company operates in 17 states and specializes in the sale of single-family homes for first-time, move-up, and active adult buyers under the Lennar brand name. Lennar's Financial Services segment provides mortgage financing, title insurance and closing services for both buyers of the company's homes and others. Lennar's Rialto segment is a vertically integrated asset management platform focused on investing throughout the commercial real estate capital structure. Lennar's Multifamily segment is a national developer of multifamily rental properties. Total revenues, including those of its Rialto, Multi-family, and Financial Services segments for the twelve months ending May 31, 2016, were approximately $10.2 billion, and consolidated net income was $ 867 million. LEO MOTORS: Amends 42.5M Shares Resale Prospectus with SEC ---------------------------------------------------------- Leo Motors, Inc., filed with the Securities and Exchange Commission an amended Form S-1 registration statement relating to the sale by the selling stockholders of up to 42,456,365 shares of common stock of the Company. The Company amended the Registration Statement to delay its effective date. BOU Trust is deemed to be an "underwriter" within the meaning of the Securities Act of 1933, as amended, in connection with the resale of the 38,986,355 shares that it is offering in this prospectus, although it may not sell those shares pursuant to Rule 144 of the Securities Act. The prices at which the selling stockholders may sell shares will be determined by the prevailing market price for the shares or in privately negotiated transactions. The Company will not receive any proceeds from the sale of these shares by the selling stockholders. All expenses of registration incurred in connection with this offering are being borne by the Company, but all selling and other expenses incurred by the selling stockholders will be borne by the selling stockholders. The Company's common stock is quoted on the OTCQB and trades under the symbol "LEOM." On June9, 2016, the last reported sale price of the Company's common stock as reported on the OTCQB was $0.29 per share. A full-text copy of the Form S-1/A is available at: https://is.gd/iVHofy About Leo Motors Headquartered in Hanam City, Gyeonggi-do, Republic of Korea, Leo Motors, Inc., a Nevada corporation, is currently engaged in the research and development of multiple products, prototypes and conceptualizations based on proprietary, patented and patent pending electric power generation, drive train and storage technologies. In 2011, the Company determined its investment in Leo B&T Inc. an investment account was impaired and recorded an expense of $4.5 million. During the 2012 year the Company had a net non operating income largely from the result of the forgiveness of debt for $1.3 million. Leo Motors reported a net loss of US$4.49 million on US$4.29 million of revenues for the year ended Dec. 31, 2015, compared to a net loss of US$4.48 million on US$693,000 of revenues for the year ended Dec. 31, 2014. As of March 31, 2016, Leo Motors had $6.19 million in total assets, $5.18 million in total liabilities and $1 million in total equity. LISA A. KERICH: Plan Confirmation Hearing on August 30 ------------------------------------------------------ The U.S. Bankruptcy Court for the Eastern District of Texas conditionally approved the outline of the Chapter 11 plan of reorganization of Lisa Kerich, allowing her to begin soliciting votes from creditors. A court hearing to consider final approval of the disclosure statement and confirmation of the plan is scheduled for August 30, at 9:30 a.m. The hearing will take place at Plano Bankruptcy Courtroom, 660 N. Central Expressway, Third Floor, Plano, Texas. Objections to the plan are due by August 23. Ballots accepting or rejecting the plan must be filed no later than August 25. About Lisa A. Kerich Lisa A. Kerich sought protection under Chapter 11 of the Bankruptcy Code (Bankr. E.D. Tex. Case No. 16-40476) on March 16, 2016. The case is assigned to Judge Brenda T. Rhoades. The Debtor is represented by Christopher J. Moser, Esq., at Quilling Selander Lownds Winslett Moser. LUCAS ENERGY: GBH CPAs Raises Going Concern Doubt Due to Losses --------------------------------------------------------------- Lucas Energy, Inc., filed with the U.S. Securities and Exchange Commission its annual report on Form 10-K for the fiscal year ended March 31, 2016. GBH CPAs, PC, notes that the Company has incurred significant losses from operations and had a working capital deficit at March 31, 2016. These factors raise substantial doubt about the Company's ability to continue as a going concern. The Company reported a net loss of $25.45 million on $968,146 of total revenues for the fiscal year ended March 31, 2016, compared to a net loss of $5.13 million on $3 million of total revenues in 2015. The Company's balance sheet at March 31, 2016, showed $14.79 million in total assets, $12.39 million in total liabilities, and total equity of $2.40 million. At March 31, 2016, the Company's total current liabilities of $11.1 million exceeded its total current assets of $0.5 million, resulting in a working capital deficit of $10.6 million, while at March 31, 2015, the Company's total current liabilities of $10.3 million exceeded its total current assets of $0.6 million, resulting in a working capital deficit of $9.7 million. The $0.9 million increase in the working capital deficit is primarily related to cash used from Company's issuance of debt. A full-text copy of the company's annual report is available for free at: https://is.gd/ImW6tO Lucas Energy, Inc. is an independent oil and natural gas company based in Houston. The company is engaged in the acquisition and development of crude oil and natural gas from known productive geological formations, including the Austin Chalk and Eagle Ford formations, primarily in Gonzales and Wilson counties, Texas, south of the city of San Antonio, Texas. MAGNESIUM CORP: Ch.7 Trustee to Auction Renco Interests on Aug. 11 ------------------------------------------------------------------ The U.S. Bankruptcy Court for the Southern District of New York approved the bidding procedures filed by Lee E. Buchwald, the Chapter 7 trustee of Magnesium Corporation of America and its debtor-affiliates, for the sale of Renco Litigation Interests. The Chapter 7 Trustee named AEM SPV LLC as the stalking horse bidder for the Renco Litigation Interests. The Renco Litigation Interests consist of the right to receive the Renco Litigation Consideration from the net proceeds of the seller's and the Debtors' recoveries from the amended judgment, and any further proceedings in connection therewith, and the cross-appeal, and any further proceedings in connection therewith. In addition, the Renco Litigation Consideration mean the consideration to be paid by the seller solely from the net proceeds on account of the Renco Litigation Interest in an amount equal to the sum of: a) $53,750000 plus b) a 10% per annum investment return on the purchase price, accruing daily beginning on the one year anniversary of the date of the closing, and compounding annually. Net Proceeds consist of any cash or other consideration seller and the Debtors receive in full or partial satisfaction of the amended judgment and the cross-appeal and any further proceedings in connection therewith, whether through settlement, enforcement or otherwise, after deducting from Gross recoveries the sum of: a) 3% of gross recoveries on account of the seller's Chapter 7 commissions; b) an amount equal to the sliding scale contingency fee of Kellog Huber, seller's appellate counsel, up to a maximum of $2,000,000; and c) 41% of gross recoveries on account of the contingency fee of Beus Gilbert, seller's trial counsel. The Chapter 7 trustee will conduct an auction for the sale of the Renco Litigation Interest beginning Aug. 11, 2016, at 10:00 a.m. (Prevailing Eastern Time) at the offices of Stevens & Lee, P.C., 485 Madison Avenue, 20th floor, New York, New York. Bids must be filed no later than 5:00 p.m. (Prevailing Eastern Time) on Aug. 9, 2016. A sale hearing will held on Aug. 23, 2016, at 10:00 a.m. (Prevailing Eastern Time), before the Hon. Mary Kay Vyskocil, the U.S. Bankruptcy Court for the Southern District of New York, One Bowling Green, New York, New York, in Room 501. Objections, if any, are due Aug. 16, 2016, at 4:00 p.m. (Prevailing Eastern Time). The Chapter 7 trustee retained as counsel: Stevens & Lee, P.C. 485 Madison Avenue, 20th floor New York, New York 10022 Attn: Nicholas F. Kajon, Esq. Tel: (212) 319-8500 Email: nfk@stevenslee.com About MagCorp Magnesium Corporation of America, a unit of Renco Group Inc., was the largest single producer of magnesium in the United States. The Company filed for chapter 11 protection (Bankr. S.D.N.Y. Case No. 01-14312) on Aug. 2, 2001. The Debtors sold substantially all of their assets to U.S. Magnesium, LLC, in a Sec. 363 asset sale transaction. Judge Robert Gerber ordered the case converted to a chapter 7 liquidation on Sept. 24, 2003. When the Company filed for Chapter 11 protection from its creditors, it listed debts and assets of more than $100 million. MARK NELSON: Asks Court to Approve Outline of Chapter 11 Plan ------------------------------------------------------------- Mark and Andrea Nelson asked the U.S. Bankruptcy Court for the District of New Jersey to conditionally approve the disclosure statement detailing their proposed Chapter 11 plan. The request, if granted by the court, would allow the Debtors to begin soliciting votes for their plan. Under U.S. bankruptcy law, a debtor must get court approval of its disclosure statement to begin soliciting votes from creditors. The document must contain adequate information to enable creditors to make an informed decision about the bankruptcy plan. In the same filing, the Debtors also asked the court to schedule a hearing for final approval of the disclosure statement and confirmation of the plan. The Debtors are represented by: Dean G. Sutton, Esq. 18 Green Road P.O. Box 187 Sparta, New Jersey 07871 Phone: (973) 729-8121 About The Nelsons Mark R. and Andrea J. Nelson sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D. N.J. Case No. 13-28499) on August 23, 2013. MATT HORN: Pennsylvania Property Sale Approved ---------------------------------------------- Judge Robert D. Drain of the U.S. Bankruptcy Court for the Southern District of New York entered an order authorizing Matt Horn and Veronica Horn to: (x) sell their property known as 325 Jefferis Road, Dowingtown, Pennsylvania, pursuant to the Standard Agreement for the Sale of Real Estate between the Debtors and Nathan and Nicole Hoffman; and (y) retain Tom Burlington of Duffy Real Estate - St. Davids and Jamie Wagner of Re/Max Action Associates as real estate brokers for procuring the sale. The sale of the Property is free and clear of all liens, claims, interests and encumbrances. The Court further authorized and directed the Debtors to execute the following: a. pay the proceeds of the sale of the Property at the closing of the sale to satisfy the existing valid first mortgage debt held by Wells Fargo, transfer taxes, if any, title pick-up fees, if any, title fees, if any, all open real estate taxes, if any, the foregoing Brokers' commissions, and any other reasonable and/or necessary expenses of such sale; provided, that if any of the foregoing amounts are in dispute, the Debtors will cause the disputed amount(s) to be placed in escrow subject to further order of the Court or resolution by the parties; b. pay the Brokers an aggregate 6% commission from the proceeds of the sale of the Property under the Purchase Contract at the closing of such sale, without the need for further Court order. c. to use up to $50,000 to preserve, repair and improve their Vermont property, on the condition that the Debtors file Monthly Operating Reports for the months of October, 2015 through June, 2016 with the Court before they may use any such funds; and d. to deliver the remaining balance of the sale proceeds, if any, to Barr Legal PLLC, to be held in escrow pending further order of the Court. Matt Horn and Veronica Horn sought Chapter 11 protection (Bankr. S.D.N.Y. Case No. 13-23284) on Aug. 2, 2013. Harvey S. Barr, Esq., serves as the Debtors' counsel. MAURO CEVENINI: Court to Take Up Plan Outline on Sept. 13 --------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of Florida is set to hold a hearing on September 13, at 10.30 a.m., to consider the disclosure statement detailing the Chapter 11 plan of reorganization of Mauro Cevenini. The hearing will take place at the U.S. Bankruptcy Court, 299 E. Broward Boulevard # 308, Fort Lauderdale, Florida. Objections are due by September 6. Under the plan of reorganization, Mr. Cevenini proposes to make 20 quarterly payments to general unsecured creditors. Each general unsecured creditor will receive a pro rata share of $1,000 per quarter for the payments. The aggregate amount of scheduled unsecured claims is $170,061, according to court filings. Funds to be used to make cash payments under the plan will come from the collection of rents from Mr. Cevenini's investment properties in Vero Beach and Gainesville, Florida; from his income as a business consultant; and from his wife's income as a tax preparer. About Mauro Cevenini Mauro Cevenini sought protection under Chapter 13 of the Bankruptcy Code on May 26, 2015. The case was converted to a Chapter 11 case (Bankr. S. D. Fla. Case No. 15-19488) on November 10, 2015. The case is assigned to Judge John K. Olson. The Debtor is represented by Elias Leonard Dsouza, Esq., at DCS Law Group, P.A. MCCLATCHY CO: Reports Second Quarter 2016 Results ------------------------------------------------- McClatchy Company reported a net loss of $14.7 million on $242 million of net revenues for the quarter ended June 26, 2016, compared to a net loss of $296 million on $262 million of net revenues for the quarter ended June 28, 2015. For the six months ended June 26, 2016, McClatchy reported a net loss of $27.5 million on $480 million of net revenues compared to a net loss of $308 million on $520 million of net revenues for the six months ended June 28, 2015. Pat Talamantes, McClatchy's president and CEO, said, "As we look at the second quarter and first half results we see relative stability in operating cash flow and free cash flow compared to 2015 and continued success in our digital business. Our free cash flow for the trailing twelve months ending in the second quarter of 2016 was $63.4 million, an improvement over the $56.1 million for the trailing twelve months ending in the first quarter of 2016. We again reported strong digital-only results, up 16.1% in digital-only advertising in the quarter -- our third consecutive quarter of double-digit growth. We expect double-digit growth in the second half of 2016 as well. Our average unique visitors to our digital platforms grew 31.1% to more than 53 million. "Importantly, we continue to deliver on our digital transformation through innovative investments and partnerships, including being an original partner and leader in Nucleus Marketing Solutions (Nucleus). Nucleus, a marketing solutions network for national advertisers, officially launched on July 1, 2016, and is a great example of how our industry can work together to create new business models. McClatchy intends to help lead that process, whether it is through Nucleus, the Local Media Consortium or shared investments. "We also made further progress in reducing legacy costs. In the second quarter, we announced we were moving our production operations in Wichita, Kan., and Fresno, Ca., to other McClatchy facilities and our Lexington, Ky., production operations to a third party. This type of consolidation not only allows for significant costs savings, but also allows us to unlock the value of our real estate portfolio. As a result of these moves, Wichita's main building is now one of three properties contracted for sale and anticipated to close in 2016. In fact, our efforts to monetize our real estate assets are beginning to show results. We are in the process of working with prospective buyers on our Sacramento, CA, Kansas City, MO, and Columbia, SC main office buildings and printing facilities for sale-leaseback transactions, as well as working with potential interested buyers on terms for several other properties." Talamantes continued, "We have been pleased with the feedback received on the reverse stock split which has now been effective for more than a month. Along with the reverse stock split, the Board also approved an amendment to the share repurchase plan, increasing the total available for repurchases through 2016 from $15 million to $20 million. Under that program, we repurchased 234,000 shares of Class A stock during the quarter. Cumulatively through the second quarter of 2016, total shares repurchased reached 1.2 million at an average price of $11.99." The Company reaffirms the guidance provided for all of 2016. Digital-only advertising revenue is expected to grow at a double-digit rate in the second half of 2016. While the company remains committed to communicating the value of print advertising, the declining trends in direct marketing and print advertising are not anticipated to subside in the next two quarters. Management expects print advertising revenues will continue to become a smaller portion of advertising and total revenues. Audience revenues are expected to be relatively flat for all of 2016. Management will be vigilant in reducing legacy costs and finding efficiencies and expect cash expenses to decline in the second half and full year 2016. Management will also remain focused on growing digital revenues, stabilizing operating cash flow, reducing debt and interest costs and creating shareholder value. A full-text copy of the press release is available at: https://is.gd/ghDKwv About The McClatchy Company Sacramento, Cal.-based The McClatchy Company (NYSE: MNI) -- http://www.mcclatchy.com/-- is a media company that provides both print and digital news and advertising services. Its operations include 30 daily newspapers, community newspapers, websites, mobile news and advertising, niche publications, direct marketing and direct mail services. Its owned newspapers include, among others, the (Fort Worth) Star-Telegram, The Sacramento Bee, The Kansas City Star, the Miami Herald, The Charlotte Observer, and The (Raleigh) News & Observer. The Company holds interest in digital assets which include CareerBuilder, LLC, Classified Ventures, LLC, HomeFinder, LLC, and Wanderful Media. McClatchy reported a net loss of $300 million on $1.05 billion of net revenues for the year ended Dec. 27, 2015, compared to net income of $374 million on $1.14 billion of net revenues for the year ended Dec. 28, 2014. As of March 27, 2016, the Company had $1.88 billion in total assets, $1.70 billion in total liabilities and $179 million in total stockholders' equity. * * * McClatchy carries a 'Caa1' corporate family rating from Moody's Investors Service. In May 2011, Moody's changed the rating outlook from stable to positive following the company's announcement that it closed on the sale of land in Miami for $236 million. The outlook change reflects Moody's expectation that McClatchy will utilize the net proceeds to reduce debt, including its underfunded pension position, which will reduce leverage by approximately half a turn and lower required contributions to the pension plan over the next few years. As reported by the TCR on April 2, 2014, Standard & Poor's Ratings Services affirmed all ratings on U.S. newspaper company The McClatchy Co., including the 'B-' corporate credit rating, and revised the rating outlook to stable from positive. The outlook revision to stable reflects S&P's expectation that the timeframe for a potential upgrade lies beyond the next 12 months, and could also depend on the company realizing value from its digital minority interests. MCELRATH LEGAL: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: McElrath Legal Holding, LLC 1641 Saw Mil Run Boulevard Pittsburgh, PA 15210 Case No.: 16-22568 Chapter 11 Petition Date: July 11, 2016 Court: United States Bankruptcy Court Western District of Pennsylvania (Pittsburgh) Judge: Hon. Carlota M. Bohm Debtor's Counsel: Gary William Short, Esq. 212 Windgap Road Pittsburgh, PA 15237 Tel: 412-765-0100 Fax: 412-536-3977 E-mail: garyshortlegal@gmail.com Estimated Assets: $0 to $50,000 Estimated Liabilities: $1 million to $10 million The petition was signed by Paul McElrath, president. A copy of the Debtor's list of 20 largest unsecured creditors is available for free at http://bankrupt.com/misc/pawb16-22568.pdf MF GLOBAL: Corzine, Others Ink $132-Mil. Deal with Trustee ---------------------------------------------------------- The American Bankruptcy Institute, citing Jonathan Stempel of Reuters, reported that Jon Corzine has settled a lawsuit by the trustee for the former New Jersey governor's company MF Global Holdings Ltd, as part of a $132 million accord to end much of the remaining litigation over the brokerage’s 2011 collapse. According to the report, lawyers for the trustee Nader Tavakoli and MF Global's bankruptcy plan administrator asked a U.S. bankruptcy judge to approve the payout, saying it "provides closure and maximizes recoveries to the estates' creditors." A substantial majority of the payout would be made by insurers on behalf of Corzine and other defendants, including MF Global's former Chief Operating Officer Bradley Abelow and former Chief Financial Officer Henri Steenkamp, the report related. They have denied mismanaging MF Global, and did not admit liability in agreeing to settle, the report said. Individual defendants, whose identities are confidential, would fund part of the payout, which includes interest payments to customers who have already recouped their funds, the report further related. The accord "will provide for much greater recoveries for creditors than they could have expected when MF Global filed for bankruptcy," the report cited Tavakoli as saying in a phone interview on Thursday. About MF Global New York-based MF Global -- http://www.mfglobal.com/-- was one of the world's leading brokers of commodities and listed derivatives. MF Global provides access to more than 70 exchanges around the world. The firm also was one of 22 primary dealers authorized to trade U.S. government securities with the Federal Reserve Bank of New York. MF Global's roots go back nearly 230 years to a sugar brokerage on the banks of the Thames River in London. On Oct. 31, 2011, MF Global Holdings Ltd. and MF Global Finance USA Inc. filed voluntary Chapter 11 petitions (Bankr. S.D.N.Y. Case Nos. 11-15059 and 11-5058), after a planned sale to Interactive Brokers Group collapsed. As of Sept. 30, 2011, MF Global had $41,046,594,000 in total assets and $39,683,915,000 in total liabilities. On Nov. 7, 2011, the United States Trustee appointed the statutory creditors' committee in the Debtors' cases. At the behest of the Statutory Creditor's Committee, the Court directed the U.S. Trustee to appoint a chapter 11 trustee. On Nov. 28, 2011, the Bankruptcy Court entered an order approving the appointment of Louis J. Freeh, Esq., of Freeh Group International Solutions, LLC, as Chapter 11 trustee. On Dec. 19, 2011, MF Global Capital LLC, MF Global Market Services LLC and MF Global FX Clear LLC filed voluntary Chapter 11 petitions (Bankr. S.D.N.Y. Case Nos. 11-15808, 11-15809 and 11-15810). On Dec. 27, the Court entered an order installing Mr. Freeh as Chapter 11 Trustee of the New Debtors. On March 2, 2012, MF Global Holdings USA Inc. filed a voluntary Chapter 11 petition (Bankr. S.D.N.Y. Case No. 12-10863), and Mr. Freeh also was installed as its Chapter 11 Trustee. Judge Honorable Martin Glenn presides over the Chapter 11 case. J. Gregory Milmoe, Esq., Kenneth S. Ziman, Esq., and J. Eric Ivester, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, serve as bankruptcy counsel. The Garden City Group, Inc., serves as claims and noticing agent. The petition was signed by Bradley I. Abelow, Executive Vice President and Chief Executive Officer of MF Global Finance USA Inc. The Chapter 11 Trustee has tapped (i) Freeh Sporkin & Sullivan LLP, as investigative counsel; (ii) FTI Consulting Inc., as restructuring advisors; (iii) Morrison & Foerster LLP, as bankruptcy counsel; and (iv) Pepper Hamilton as special counsel. The Official Committee of Unsecured Creditors has retained Capstone Advisory Group LLC as financial advisor, while lawyers at Proskauer Rose LLP serve as counsel. The Securities Investor Protection Corporation commenced liquidation proceedings against MF Global Inc. to protect customers. James W. Giddens was appointed as trustee pursuant to the Securities Investor Protection Act. He is a partner at Hughes Hubbard & Reed LLP in New York. Jon Corzine, the former New Jersey governor and co-CEO of Goldman Sachs Group Inc., stepped down as chairman and chief executive officer of MF Global just days after the bankruptcy filing. In April 2013, the Bankruptcy Court approved MF Global Holdings' plan to liquidate its assets. Bloomberg News reported that the court-approved disclosure statement initially told creditors with $1.134 billion in unsecured claims against the parent holding company why they could expect a recovery of 13.4% to 39.1% from the plan. As a consequence of a settlement with JPMorgan, supplemental materials informed unsecured creditors their recovery was reduced to the range of 11.4% to 34.4%. Bank lenders will have the same recovery on their $1.174 billion claim against the holding company. As a consequence of the settlement, the predicted recovery became 18% to 41.5% for holders of $1.19 billion in unsecured claims against the finance subsidiary, one of the companies under the umbrella of the holding company trustee. Previously, the predicted recovery was 14.7% to 34% on bank lenders' claims against the finance subsidiary. MILESTONE SCIENTIFIC: Hires Friedman LLP as New Accountants ----------------------------------------------------------- Milestone Scientific Inc. engaged Friedman LLP as its new independent registered public accounting firm and dismissed Baker Tilly Virchow Krause, LLP from serving as the Company's independent registered public accounting firm effective July 18, 2016. As disclosed in a regulatory filing with the Securities and Exchange Commission, the Company's decision to dismiss Baker Tilly was based on its determination to lower its audit and audit related expenses. The Company's Audit Committee unanimously approved and authorized the change, directed the process of review of candidate firms to replace Baker Tilly and made the final decision to engage Friedman LLP. The reports of Baker Tilly on the financial statements of the Company for the years ended Dec. 31, 2014, and 2015 contained no adverse opinion or disclaimer of opinion and were not qualified or modified as to uncertainty, audit scope or accounting principle. In connection with its audits of the years ended Dec. 31, 2014, and 2015 and reviews of the Company's financial statements through the Effective Date there were no disagreements with Baker Tilly on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, which disagreements, if not resolved to the satisfaction of Baker Tilly, would have caused them to make reference thereto in their reports on the financial statements. During the two most recent fiscal years and through the Effective Date, the Company has not consulted with Friedman LLP on any matter that (i) involved the application of accounting principles to a specified transaction, either completed or proposed, or the type of audit opinion that might be rendered on the Company's financial statements. About Milestone Scientific Livingston, N.J.-based Milestone Scientific Inc. is engaged in pioneering proprietary, innovative, computer-controlled injection technologies and solutions for the medical and dental markets. Milestone Scientific reported a net loss attributable to the Company of $5.46 million on $9.49 million of net product sales for the year ended Dec. 31, 2015, compared to a net loss attributable to the Company of $1.70 million on $10.33 million of net product sales for the year ended Dec. 31, 2014. As of March 31, 2016, Milestone Scientific had $11.60 million in total assets, $3.24 million in total liabilities, all current, and total equity of $8.36 million. MILLENIUM HEALTH: Court OKs Ameritox Bid for Prejudgment Interest ----------------------------------------------------------------- Judge William M. Conley of the United States District Court for the Western District of Wisconsin granted in part and reserved in part plaintiffs Ameritox Ltd. and Marshfield Clinic, Inc.'s motion for prejudgment interest and enhanced damages pursuant to 35 U.S.C. section 284. The judge, however, denied the plaintiffs' motion for attorneys' fees, expert witness fees and additional expenses. Having received notice from the bankruptcy court that the plaintiffs' claim may proceed, the court took up the two pending post-trial motions in the patent lawsuit, both brought by Ameritox and Marshfield Clinic. The motions were previously stayed by virtue of the defendant Millennium Health, LLC's filing for Chapter 11 protection in the United States Bankruptcy Court for the District of Delaware. In the first motion, the plaintiffs sought prejudgment interest and enhanced damages pursuant to 35 U.S.C. section 284. Judge Conley awarded prejudgment interest in the amount of $1,148,164.21, and reserved on the plaintiff's motion for enhanced damages pursuant to section 284 pending supplemental briefing. In the second motion, the plaintiffs sought attorneys' fees, expert witness fees and additional expenses under 38 U.S.C. section 285 and the district court's inherent authority. Judge Conley denied that motion. A full-text copy of Judge Conley's July 18, 2016 opinion and order is available at https://is.gd/GXjuMP from Leagle.com. The case is AMERITOX, LTD., and MARSHFIELD CLINIC, INC., Plaintiffs, v. MILLENNIUM HEALTH, LLC, Defendant, No. 13-cv-832-wmc (W.D. Wis.). Ameritox, Ltd. is represented by: James P. Ulwick, Esq. KRAMON AND GRAHAM PA One South Street, Suite 2600 Baltimore, MD 21202 Tel: (410)752-6030 Fax: (410)539-1269 Email: julwick@kg-law.com -- and -- Adam Louis Marchuk, Esq. Mark T. Smith, Esq. Michael R. Osterhoff, Esq. Patrick M. Collins, Esq. Tiffany Patrice Cunningham, Esq. Timothy J. Carroll, Esq. PERKINS COIE LLP 131 South Dearborn Street, Suite 1700 Chicago, IL 60603-5559 Tel: (312)324-8400 Fax: (312)324-9400 Email: amarchuk@perkinscoie.com marksmith@perkinscoie.com mosterhoff@perkinscoie.com pcollins@perkinscoie.com tcunningham@perkinscoie.com tcarroll@perkinscoie.com Marshfield Clinic, Inc. is represented by: James P. Ulwick, Esq. KRAMON AND GRAHAM PA One South Street, Suite 2600 Baltimore, MD 21202 Tel: (410)752-6030 Fax: (410)539-1269 Email: julwick@kg-law.com -- and -- Naikang Tsao, Esq. Kimberly Kristin Dodd, Esq. FOLEY & LARDNER LLP Suite 5000 150 East Gilman Street Madison, WI 53703-1482 Email: ntsao@foley.com kdodd@foley.com -- and -- Adam Louis Marchuk, Esq. Michael R. Osterhoff, Esq. Timothy J. Carroll, Esq. PERKINS COIE LLP 131 South Dearborn Street, Suite 1700 Chicago, IL 60603-5559 Tel: (312)324-8400 Fax: (312)324-9400 Email: amarchuk@perkinscoie.com mosterhoff@perkinscoie.com tcarroll@perkinscoie.com -- and -- Matthew Brewer, Esq. Peter Benjamin Bensinger, Jr., Esq. BARTLIT BECK HERMAN PALENCHAR & SCOTT Courthouse Place 54 West Hubbard Street, Suite 300 Chicago, IL 60654 Tel: (312)494-4400 Fax: (312)494-4440 Email: matthew.brewer@bartlit-beck.com peter.bensinger@bertlit-beck.com Millennium Health, LLC is represented by: Robert Benjamin Wolinsky, Esq. Bonnie Chen, Esq. Rebecca Cheryl Mandel, Esq. Steven P. Hollman, Esq. HOGAN LOVELLS US LLP Columbia Square 555 Thirteenth Street, NW Washington, D.C. 20004 Tel: (202)637-5600 Fax: (202)637-5910 Email: robert.wolinsky@hoganlovells.com -- and -- Arlene L. Chow, Esq. HOGAN LOVELLS US LLP 875 Third Avenue New York, NY 10022 Tel: (212)918-3000 Fax: (212)918-3100 Email: arlene.chow@hoganlovells.com -- and -- Douglas Maynard Poland, Esq. Jennifer Lynn Gregor, Esq. GODFREY & KAHN S.C. One East Main Street, Suite 500 Madison, WI 53701-2719 Tel: (608)257-3911 Fax: (608)257-0609 Email: jgregor@gklaw.com Ameritox, Ltd. is represented by: James P. Ulwick, Esq. KRAMON AND GRAHAM PA One South Street, Suite 2600 Baltimore, MD 21202 Tel: (410)752-6030 Fax: (410)539-1269 Email: julwick@kg-law.com -- and -- Adam Louis Marchuk, Esq. Michael R. Osterhoff, Esq. Patrick M. Collins, Esq. Tiffany Patrice Cunningham, Esq. Timothy J. Carroll, Esq. PERKINS COIE LLP 131 South Dearborn Street, Suite 1700 Chicago, IL 60603-5559 Tel: (312)324-8400 Fax: (312)324-9400 Email: amarchuk@perkinscoie.com mosterhoff@perkinscoie.com pcollins@perkinscoie.com tcunningham@perkinscoie.com tcarroll@perkinscoie.com MOTORS LIQUIDATION: Files GUC Trust Report as of June 30 -------------------------------------------------------- Pursuant to the Second Amended and Restated Motors Liquidation Company GUC Trust Agreement dated as of July 30, 2015, and between the parties thereto, Wilmington Trust Company, acting solely in its capacity as trust administrator and trustee of the Motors Liquidation Company GUC Trust, is required to file certain GUC Trust Reports (as such term is defined in the GUC Trust Agreement) with the Bankruptcy Court for the Southern District of New York. In addition, pursuant to that certain Bankruptcy Court Order Authorizing the GUC Trust Administrator to Liquidate New GM Securities for the Purpose of Funding Fees, Costs and Expenses of the GUC Trust and the Avoidance Action Trust, dated March 8, 2012, the GUC Trust Administrator is required to file certain quarterly variance reports as described in the third sentence of Section 6.4 of the GUC Trust Agreement with the Bankruptcy Court. On July 22, 2016, the GUC Trust Administrator filed the GUC Trust Report required by Section 6.2(c) of the GUC Trust Agreement together with the Budget Variance Report, each for the fiscal quarter ended June 30, 2016. In addition, the Motors Liquidation Company GUC Trust announced that no distribution in respect of its Units (as such term is defined in the GUC Trust Agreement) is anticipated for the fiscal quarter ended June 30, 2016. A copy of the Bankruptcy Court filing is available for free at: https://is.gd/HbcOTZ About Motors Liquidation General Motors Corporation and three of its affiliates filed for Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 09-50026) on June 1, 2009. The Honorable Robert E. Gerber presides over the Chapter 11 cases. Harvey R. Miller, Esq., Stephen Karotkin, Esq., and Joseph H. Smolinsky, Esq., at Weil, Gotshal & Manges LLP, assist the Debtors in their restructuring efforts. Al Koch at AP Services, LLC, an affiliate of AlixPartners, LLP, serves as the Chief Executive Officer for Motors Liquidation Company. GM is also represented by Jenner & Block LLP and Honigman Miller Schwartz and Cohn LLP as counsel. Cravath, Swaine, & Moore LLP is providing legal advice to the GM Board of Directors. GM's financial advisors are Morgan Stanley, Evercore Partners and the Blackstone Group LLP. Garden City Group is the claims and notice agent of the Debtors. The U.S. Trustee appointed an Official Committee of Unsecured Creditors and a separate Official Committee of Unsecured Creditors Holding Asbestos-Related Claims. Lawyers at Kramer Levin Naftalis & Frankel LLP served as bankruptcy counsel to the Creditors Committee. Attorneys at Butzel Long served as counsel on supplier contract matters. FTI Consulting Inc. served as financial advisors to the Creditors Committee. Elihu Inselbuch, Esq., at Caplin & Drysdale, Chartered, represented the Asbestos Committee. Legal Analysis Systems, Inc., served as asbestos valuation analyst. The Bankruptcy Court entered an order confirming the Debtors' Second Amended Joint Chapter 11 Plan on March 29, 2011. The Plan was declared effect on March 31. On Dec. 15, 2011, Motors Liquidation Company was dissolved. On the Dissolution Date, pursuant to the Plan and the Motors Liquidation Company GUC Trust Agreement, dated March 30, 2011, between the parties thereto, the trust administrator and trustee -- GUC Trust Administrator -- of the Motors Liquidation Company GUC Trust, assumed responsibility for the affairs of and certain claims against MLC and its debtor subsidiaries that were not concluded prior to the Dissolution Date. 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. NEAL COY: Selling Two Properties to Quadrant Corp ------------------------------------------------- Neal C. Coy filed with the U.S. Bankruptcy Court for the Western District of Washington a motion for authorization to sell real property located at King County tax assessor numbers 1326069057 and 1326069070 to The Quadrant Corporation ("the Buyer"). A hearing is scheduled for Aug. 5, 2016, at 9:30 a.m. Objections are due July 29. These two parcels are subject to pending requests for annexation and preliminary plat approval with the City of Duvall. As described in more detail in the Debtor's previously-approved Disclosure Statement, that process is ongoing and the exact timing and results are not known until completion, which provides an element of uncertainty with these two properties. The purchase price is dependent upon the number of lots generated from the Properties. As detailed on the declaration of Neal Coy, that number in turn is dependent upon the results of a wetland study and other factors which can only be determined from future work by Quadrant, which will only take place once the agreement has been approved by the Bankruptcy Court. For that reason, Debtor has noted the agreements for approval at this time. As set forth in the declaration of Neal Coy, the Buyer is unrelated to the Debtor and the transaction was negotiated at arm's-length. Neal C. Coy filed a Chapter 11 petition (Bankr. W.D. Wash. Case No. 13-20960) on Dec. 19, 2013, and is represented by: Emily Jarvis WELLS AND JARVIS, P.S. 502 Logan Building 500 Union Street Seattle, WA 98101-2332 Tel: 206-624-0088 Fax: 206-624-0086 NET ELEMENT: Has 4.9 Million Shares Resale Prospectus ----------------------------------------------------- Net Element, Inc., filed a Form S-1 registration statement with the Securities and Exchange Commission relating to the sale of up to 4,951,456 shares of common stock of the Company by ESOUSA Holdings, LLC. The prices at which the selling stockholder may sell the shares will be determined by the prevailing market price for the shares or in negotiated transactions. The Company will not receive proceeds from the sale of the shares by the selling stockholder. However, the Company may receive proceeds of up to $10 million from the sale of its common stock to the selling stockholder, pursuant to a common stock purchase agreement entered into with the selling stockholder on July 6, 2016, once the registration statement, of which this prospectus is a part, is declared effective. The selling stockholder is an "underwriter" within the meaning of the Securities Act of 1933, as amended. The Company will pay the expenses of registering these shares, but all selling and other expenses incurred by the selling stockholder will be paid by the selling stockholder. The Company's common stock is listed on the Nasdaq Capital Market under the ticker symbol "NETE." On July 19, 2016, the last reported sale price per share of the Company's common stock was $2.09 per share. A full-text copy of the Form S-1 is available for free at: https://is.gd/yUnbaX 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. NET ELEMENT: To Acquire PayStar and Nexcharge --------------------------------------------- Net Element, Inc., announced the entry into a binding letter of intent to acquire a majority interest in PayStar, Inc., a comprehensive remittance and e-wallet platform for emerging markets and Nexcharge, Inc., a proprietary payment processing, fraud management and merchant management platform. It is contemplated that Net Element together with PayStar and Nexcharge will create one or more entities into which PayStar and Nexcharge will contribute all their assets, with Net Element owning a 51% interest in the newly created entities. Pursuant to the terms of the agreement, Net Element will have the irrevocable sole and exclusive option to acquire the remaining 49% interest in the newly created entities during the 12 months from the closing of the transaction. PayStar delivers a Software as a Service solution to financial institutions for their payroll and merchant management services. PayStar introduced its mobile remittance system in the Gulf Cooperation Council region, targeting a booming migrant worker population. PayStar aims to expand its mobile payroll and remittance services throughout the Middle East, starting with Qatar, United Arab Emirates, Oman and Saudi Arabia. In these markets PayStar has contracted with Commercial Bank of Qatar United Limited and National Bank of Oman, which positions PayStar to market its services to more than 15 million migrant workers. In addition, PayStar has contracts with Habitat Bank in Tunisia, Morocco and Algeria as well as Philippines National Bank in Philippines, Indusind Bank in India and ThamelRemit in Nepal. PayStar's mobile payments capabilities are available in KSA, through contracts with Mobility, a leading mobile network operator with an installed migrant customer base of 7+ million subscribers. Nexcharge transaction processing platform was developed to make it easy for acquiring banks and Payment Service Providers to connect with merchants in a secure, stable processing environment. It also allows merchants the ability to connect to numerous acquiring banks and PSPs in a convenient fashion without additional application requirements. Once Nexcharge has approved a merchant, that merchant is automatically approved within the network of integrated providers. In most cases the merchant will be unaware of the identity of the acquiring bank assisting with the transactions. The Nexcharge platform has adopted the Payment Card Industry Data Security Standard Level 1 (PCI DSS) with increased controls around cardholder data to reduce credit card fraud via its exposure. The successful closing of these acquisitions will allow Net Element to cross-sell its products and services while deploying PayStar and Nexcharge technologies and services in selected emerging markets. "These acquisitions will allow Net Element to present transactions for processing directly to Visa, MasterCard, American Express and other networks, as well as expand our presence in GCC region and other selected markets," commented Oleg Firer, CEO of Net Element." "These acquisitions will add to the growth of our business and increase market share internationally." "We are extremely excited about this opportunity. Positioning our companies on Net Element's worldwide platform utilizing our in-demand technologies allows Nexcharge and Paystar the opportunity to extend and grow into those market verticals that Net Element has already penetrated," states Christopher Berlandier, founder. Terms of the proposed acquisitions are disclosed in Net Element's Form 8-K, which is available for free at https://is.gd/rBbeQo Closing of the acquisitions is subject to Net Element's satisfactory completion of due diligence, definitive documentation and other customary closing conditions. 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. NEW HORIZONS HEALTH: Owenton KY Property Sale Approved ------------------------------------------------------ Judge Gregory R. Schaaf of the U.S Bankruptcy Court for the Eastern District of Kentucky, Frankfurt Division, authorized New Horizons Health Systems, Inc. -- dba New Horizons Medical Center, dba New Horizons Family Practice -- to sell its real property located at 326 Roland Avenue, Owenton, Kentucky to NKY MHMR Properties, Inc., for $112,500, subject to the completion of an inspection satisfactory to the buyer. The sale of the Property is free and clear of all Liens and Claims. All sale proceeds attributable to the purchase price for sale of the Property will be paid to the Debtor until further orders of the Court. The Debtor will hold such Sale Proceeds in counsel's escrow account and will not use or otherwise distribute those proceeds without further order of the Court after notice and a hearing. About New Horizons Health Systems Headquartered in Owenton, Kentucky, New Horizons Health Systems, Inc. -- dba New Horizons Medical Center, dba New Horizons Family Practice -- operates the Owen County Hospital. The hospital serves the counties of Owen, Gallatin, and Carroll and has operated continually since 1951. New Horizons Health Systems, Inc., filed for Chapter 11 bankruptcy protection (Bankr. E.D. Ky. Case No. 15-30235) on May 29, 2015, estimating assets between $1 million and $10 million and liabilities between $10 million and $50 million. The petition was signed by Bernard T. Poe, president. Judge Gregory R. Schaaf presides over the case. Ellen Arvin Kennedy, Esq., at Dinsmore & Shohl LLP serves as the Company's bankruptcy counsel. Kelley S. Gamble, CPA, is the Company's accountant. An official committee of unsecured creditors has been appointed in the case. NEW YORK CRANE: Taps LaMonica Herbst as Special Counsel ------------------------------------------------------- New York Crane & Equipment Corp. seeks approval from the U.S. Bankruptcy Court for the Eastern District of New York to hire LaMonica Herbst & Maniscalco, LLP as special counsel. New York Crane tapped the firm to represent the company and its affiliates in matters where their lead counsel Goldberg Weprin Finkel Goldstein LLP cannot represent them due to a conflict of interest. The firm's professionals and their hourly rates are: Paraprofessionals $175 Associates $415 Partners $595 Gary Herbst, Esq., at LaMonica, disclosed in a court filing that the firm is a "disinterested person" as defined in section 101(14) of the Bankruptcy Code. The firm can be reached through: Gary F. Herbst, Esq. LaMonica Herbst & Maniscalco, LLP 3305 Jerusalem Avenue, Suite 201 Wantagh, NY 11793 Phone: (516) 826-6500 About New York Crane New York Crane & Equipment Corp., J.F. Lomma, Inc. (De.), J.F. Lomma, Inc. (N.J.), and James F. Lomma filed Chapter 11 bankruptcy petitions (Bankr. E.D.N.Y. Case Nos. 16-40043, 16-40044, 16-40045 and 16-40048, respectively. The petitions were signed by James F. Lomma as president. New York Crane & Equipment disclosed total assets of $9.8 million and total debts of $22.05 million. Goldberg Weprin Finkel Goldstein LLP serves as the Debtors' counsel. Judge Carla E. Craig presides over the cases. The corporate Debtors operate crane, trucking and rigging companies doing business in New York City and other parts of the country. James Lomma is the president and sole shareholder of the corporate Debtors. On January 8, 2016, an Order was entered providing for the joint administration of these related Chapter 11 cases. An Official Committee of Unsecured Creditors has been appointed, and has tapped Togut, Segal & Segal LLP as its counsel. NOVATION COMPANIES: Hires Olshan Frome Wolosky as Co-Counsel ------------------------------------------------------------ Novation Companies, Inc., et al., seek permission from the Bankruptcy Court to employ Olshan Frome Wolosky LLP as their co-counsel effective as of the Petition Date. Olshan has represented the Debtors since May 2015 in connection with a corporate transaction and in October 2015 began representing the Debtors on general corporate and securities matters, including without limitation quarterly, annual and current report filings required pursuant to federal securities laws, as well as other SEC filings, employment matters, and other general corporate matters. Olshan has also represented the Debtors in their negotiations with the holders of the senior notes and the Chapter 11 bankruptcy filings. Olshan will, among other tasks: (a) assist, advise and represent the Debtors with respect to general corporate and securities law and the administration of these cases and oversight of their affairs, including all issues arising from or impacting the Debtors or these Chapter 11 cases; (b) take all necessary action to protect and preserve the Debtors' estates during the administration of these Chapter 11 cases, including prosecuting actions by the Debtors, defending actions commenced against the Debtors, negotiating and objecting, where necessary, to claims filed against the estates; (c) assist the Debtors in maximizing the value of their assets for the benefit of all creditors, including, without limitation, in connection with assumption or rejection of executory contracts and unexpired leases; (d) prepare, on behalf of the Debtors, necessary applications, motions, answers, orders, reports and other legal papers; (e) appear in Court and represent the interests of the Debtors; (f) prepare and pursue confirmation of a Chapter 11 plan and approval of an associated disclosure statement; and (g) perform all other legal services for the Debtors which are appropriate, necessary and proper in these Chapter 11 proceedings. The Debtors wishes to employ Olshan under a general retainer agreement with fees based on Olshan's normal hourly rates. As of the Petition Date, the hourly rates for the professionals at Olshan are as follows: Partners and Counsel: $530 to $850 per hour; Associates: $290 to $540 per hour; Legal Assistants: $150 to $325 per hour. In addition, Olshan will also seek reimbursement of expenses in accordance with the applicable provisions of the Bankruptcy Code. Olshan represents it is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. About Novation Companies, Inc. Novation Companies, Inc. -- http://www.novationcompanies.com/-- is in the process of implementing its strategy to acquire operating businesses or making other investments that generate taxable earnings. Novation Companies, Inc., NovaStar Mortgage, LLC, NovaStar Mortgage Funding Corporation and 2114 Central, LLC each filed a voluntary petition under Chapter 11 of the Bankruptcy Code (Bankr. D. Md. Case Nos. 16-19745, 16-19747, 16-19748 and 16-19749, respectively) on July 20, 2016. The petition was signed by Chief Executive Officer Rodney E. Schwatken. In its petition, NCI lists assets of $33 million and liabilities of $91 million. The Debtors have hired the law firms of Shapiro Sher Guinot & Sandler, P.A. and Olshan Wolosky LLP as counsel. Orrick, Herrington & Sutcliffe LLP represents the Debtors as special litigation counsel. The cases are assigned to Judge David E. Rice. NOVATION COMPANIES: Taps Shapiro Sher as Co-Counsel --------------------------------------------------- Novation Companies, Inc., et al., seek authority from the Bankruptcy Court to employ Shapiro Sher Guinot & Sandler as their co-counsel effective as of the Petition Date. The professional services that Shapiro Sher will render to the Debtors include, but will not be limited to, the following: (a) rendering assistance and advice and representing the Debtors with respect to the administration of these cases and oversight of the Debtors' affairs, including all issues arising from or impacting the Debtors or these Chapter 11 cases; (b) take all necessary action to protect and preserve the Debtors' estates during the administration of these Chapter 11 cases, including prosecuting actions by the Debtors, defending actions commenced against the Debtors, negotiating and objecting, where necessary, to claims filed against the estates; (c) assisting the Debtors in maximizing the value of their assets for the benefit of all creditors and stakeholders, including, without limitation, in connection with assumption and rejection of executory contracts and unexpired leases; (d) preparing, on behalf of the Debtors, necessary applications, motions; (e) appearing in Court and representing the interests of the Debtors; (f) preparing and pursuing confirmation of a Chapter 11 plan and approval of an associated disclosure statement; and (g) performing all other legal services for the Debtors which are appropriate, necessary and proper in these Chapter 11 proceedings. Shapiro Sher has agreed to provide legal services to the Debtors based on the amount of time devoted to a matter at hourly rates for the particular professional involved, in increments of one-tenth of one hour. The firm's rates are subject to annual adjustment to reflect economic and market conditions. As of the Petition Date, the hourly rates for the professionals at Shapiro Sher are as follows: Partners: $450.00 to $605.00 per hour Associates: $285.00 to $440.00 per hour Paralegals: $220.00 to $240.00 per hour Shapiro Sher intends to apply to the Court for allowances of compensation and reimbursement of expenses. Shapiro Sher represents it is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. About Novation Companies, Inc. Novation Companies, Inc. -- http://www.novationcompanies.com/-- is in the process of implementing its strategy to acquire operating businesses or making other investments that generate taxable earnings. Novation Companies, Inc., NovaStar Mortgage, LLC, NovaStar Mortgage Funding Corporation and 2114 Central, LLC each filed a voluntary petition under Chapter 11 of the Bankruptcy Code (Bankr. D. Md. Case Nos. 16-19745, 16-19747, 16-19748 and 16-19749, respectively) on July 20, 2016. The petition was signed by Chief Executive Officer Rodney E. Schwatken. In its petition, NCI lists assets of $33 million and liabilities of $91 million. The Debtors have hired the law firms of Shapiro Sher Guinot & Sandler, P.A. and Olshan Wolosky LLP as counsel. Orrick, Herrington & Sutcliffe LLP represents the Debtors as special litigation counsel. The cases are assigned to Judge David E. Rice. OAK RIVER ASSET: Seeks to Hire Levene Neale as Legal Counsel ------------------------------------------------------------ Oak River Asset Management LLC seeks approval from the U.S. Bankruptcy Court for the Central District of California to hire Levene, Neale, Bender, Yoo & Brill LLP. The firm will serve as the Debtor's legal counsel in connection with its Chapter 11 case. The services to be provided by Levene include: (a) advising the Debtor with respect to the requirements of bankruptcy law, the court and the U.S. trustee; (b) advising the Debtor with respect to certain rights and remedies of its bankruptcy estate and the rights, claims and interests of creditors; (c) representing the Debtor in any proceeding or hearing in the bankruptcy court; (d) conducting examinations of witnesses, claimants or adverse parties and representing the Debtor in any adversary proceeding; (e) preparing legal papers; (f) assisting the Debtor in obtaining debtor-in-possession financing or cash collateral; and (g) assisting the Debtor in the negotiation and formulation of a plan of reorganization. David Golubchik and Jeffrey Kwong, the attorneys expected to represent the Debtor, will be paid $595 per hour and $335 per hour, respectively. In a court filing, Mr. Golubchik disclosed that the firm is a "disinterested person" as defined in section 101(14) of the Bankruptcy Code. The firm can be reached through: David B. Golubchik, Esq. Jeffrey S. Kwong, Esq. Levene, Neale, Bender, Yoo & Brill LLP 10250 Constellation Boulevard, Suite 1700 Los Angeles, California 90067 Telephone: (310) 229-1234 Facsimile: (310) 229-1244 Email: dbg@lnbyb.com jsk@ lnbyb.com About Oak River Oak River Asset Management LLC sought protection under Chapter 11 of the Bankruptcy Code (Bankr. C. D. Calif. Case No. 16-19233) on July 12, 2016. The petition was signed by Lawrence Perkins, authorized agent. The case is assigned to Judge Deborah J. Saltzman. At the time of the filing, the Debtor estimated its assets at $10 million to $50 million and debts at $500,000 to $1 million. OCEAN POWER: KPMG Raises Going Concern Doubt on Recurring Losses ---------------------------------------------------------------- Ocean Power Technologies, Inc., filed with the U.S. Securities and Exchange Commission its annual report on Form 10-K for the fiscal year ended April 30, 2016. KPMG LLP issued a going concern qualification on the consolidated financial statements for the year ended April 30, 2016, noting that the Company has cash and cash equivalents of $6.7 million, and the Company has suffered recurring losses from operations and has an accumulated deficit that raise substantial doubt about its ability to continue as a going concern. The Company reported a net loss of $13.08 million on $704,820 of total revenues for the fiscal year ended April 30, 2016, compared to a net loss of $13.22 million on $4.10 million of total revenues for fiscal year 2015. The Company's balance sheet at April 30, 2016, showed $10.35 million in total assets, $6.82 million in total liabilities, and total stockholder's equity of $3.53 million. The Company has experienced substantial and recurring losses from operations resulting in an accumulated deficit of $177.9 million at April 30, 2016. At April 30, 2016, the Company has approximately $6.7 million in cash on hand. It generated revenues of only $0.7 million in fiscal 2016, and $4.1 million in fiscal 2015. Based on the Company's cash and cash equivalents and marketable securities balances as of April 30, 2016, the Company believes that it will be able to finance its capital requirements and operations into at least the quarter ending January 31, 2017. A full-text copy of the Form 10-K is available for free at: https://is.gd/B4TLAV Headquartered in Pennington, NJ, Ocean Power Technologies, Inc., (OPT) is developing and seeking to commercialize its proprietary systems that generate electricity by harnessing the renewable energy of ocean waves. The Company's PowerBuoy systems use proprietary technologies that convert the mechanical energy created by the heaving motion of ocean waves into electricity. OPT currently have designed and are seeking to commercialize and continue to develop its PowerBuoy product line which is based on modular, ocean-going buoys, which the Company has been periodically ocean testing since 1997. ORGENESIS INC: Working Capital Deficit Raises Going Concern Doubt ----------------------------------------------------------------- Orgenesis Inc. filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net income of $3.89 million on $1.13 million of revenues for the three months ended May 31, 2016, compared to a net income of $1.10 million on $.82 of revenues for the same period in 2015. For the six months ended May 31, 2016, the Company listed a net income of $3.67 million on $2.65 million of revenues, compared to a net income of $1.89 million on $.82 million of revenues for the same period last year. As of May 31, 2016, the Company had $36.75 million in total assets, $21.22 million in total liabilities and a total stockholders' equity of $15.53 million. As of May 31, 2016, the Company had not achieved profitable operations, had accumulated losses of $24.3 million (since inception), had a negative cash flows from operating activities, had a working deficiency of $9.3 million and expects to incur further losses in the development of its business. These factors raise substantial doubt about the Company's ability to continue as a going concern. The Company's continuation as a going concern is dependent on its ability to obtain additional financing as may be required and ultimately to attain profitability. The Company needs to raise significant funds on an immediate basis in order to continue to meet its liquidity needs, realize its business plan and maintain operations. The Company's current cash resources are not sufficient to support its operations as presently conducted or permit it to take advantage of business opportunities that may arise. Management of the Company is continuing its efforts to secure funds through equity and/or debt instruments for its operations. A full-text copy of the Form 10-Q is available for free at: https://is.gd/PN8h2v About Orgenesis Orgenesis Inc. is engaged in research and development in the biotechnology field in Israel. It intends to develop a technology for regeneration of functional insulin-producing cells thus enabling normal glucose regulated insulin secretion through cell therapy. The company was formerly known as Business Outsourcing Services, Inc. and changed its name to Orgenesis Inc. in August 2011. Orgenesis Inc. was founded in 2008 and is based in White Plains, New York. The Company's balance sheet at Feb. 28, 2015, showed $1.23 million in assets, $4.85 million in total liabilities, and a stockholders' deficit of $3.62 million. The Company's continuation as a going concern is dependent on its ability to obtain additional financing as may be required and ultimately to attain profitability. OVERSEAS SHIPHOLDING: Moody's Affirms B2 Corporate Family Rating ---------------------------------------------------------------- Moody's Investors Service affirmed its ratings assigned to Overseas Shipholding Group, Inc: Corporate Family Rating (CFR) of B2, Probability of Default Rating (PDR) of B2-PD, first lien senior secured of B1, LGD3, first lien super priority senior secured of Ba2, LGD1 and senior unsecured of Caa1, LGD6. Concurrently, Moody's affirmed the SGL-2 Speculative Grade Liquidity rating and changed the outlook to stable, from positive. Issuer: Overseas Shipholding Group, Inc. -- Corporate Family Rating, Affirmed B2 -- Probability of Default Rating, Affirmed B2-PD -- Speculative Grade Liquidity Rating, Affirmed SGL-2 -- Senior Unsecured Regular Bond/Debenture, Affirmed Caa1 (LGD6) Outlook Actions: -- Outlook, Changed To Stable From Positive -- Issuer: OSG Bulk Ships, Inc. -- Senior Secured Bank Credit Facility, Affirmed B1 (LGD3) Outlook Actions: -- Outlook, Changed To Stable From Positive -- Issuer: OSG International, Inc. -- Senior Secured Bank Credit Facility, Affirmed B1 (LGD3) -- Senior Secured Bank Credit Facility, Affirmed Ba2 (LGD1) Outlook Actions: -- Outlook, Changed To Stable From Positive RATINGS RATIONALE The outlook change to stable, from positive, considers the softening freight rate environment in the U.S. Jones Act and international petroleum transportation markets, but also reflects Moody's view that fundamentals of the Jones Act and international petroleum transportation markets will remain supportive over the next year, helping OSG to comfortably meet its debt obligations. Moreover, the outlook change considers the potential impact of the recently announced plan to spin off the company's international subsidiary, OSG International, Inc. ("OIN"). Moody's anticipates that OSG will sustain a financial profile and policy that supports the B2 rating level, anchored by the relatively stable (Jones Act) dynamics of its remaining operating subsidiary (OSG Bulk Ships, Inc., "OBS"). However, there is a degree of uncertainty surrounding the spin-off, including the final capital structure. As well, Moody's views the less-diversified post-spin company's smaller size, loss of EBITDA from the higher margin OIN business, and limited asset coverage as tempering factors. As a result, post-spinoff realities that differ from Moody's expectations, such as financial policies or a final capital structure that results in a higher-than-expected leverage profile, could drive downwards ratings and outlook pressure. The B2 Corporate Family rating considers OSG's leading position in the U.S. Jones Act and international crude and refined petroleum products transportation markets, through its OBS and OIN subsidiaries, and the highly cyclical nature of demand in their markets. Despite softer freight rate conditions in the company's business segments, which are anticipated to continue due to an expected increase in vessel deliveries during 2016 and 2017, Moody's anticipates that international tanker rates will remain healthy near-term, aided by relatively steady demand for the movement of crude and refined petroleum products. This should help sustain credit metrics within the single-B rating category. The stability of the U.S. Jones Act market and the mostly contracted nature of this business provides further support for the ratings, even as newly-built Jones Act product tankers enter the market in 2016 and 2017 and as incremental barge capacity (articulated tug barges or ATBs) enters the fleet. The company's higher than expected operating cash flow over the past year, from stronger market freight rates for international tankers, enhanced its existing pool of cash, which it deployed towards debt repayment. This resulted in lower (Moody's adjusted) Debt to EBITDA of 2.5x compared to about 5.0x in 2014 when OSG exited bankruptcy. The company's good liquidity profile, as reflected by the SGL-2 Speculative Grade Liquidity rating, lends support to the ratings. The ratings could be downgraded if the post-spinoff/final capital structure or financial policy results in lower-than-expected credit metrics, including Debt to EBITDA sustained above 5.5x and FFO + Interest to Interest approaching mid-high 2.0x range. A deterioration in the liquidity profile, including Free Cash Flow to Debt approaching the low teens range or sustained negative free cash flow generation, could also pressure the ratings. Upward ratings momentum could occur if OSG deploys its cash in a manner that would limit potential increases in debt, such as for fleet investments rather than shareholder returns. Clarity on the post-spinoff capital structure, financial policy and fleet plan will identify the extent to which funded debt might increase. A financial profile that results in FFO + Interest to Interest that approaches the mid-3.0x range, Debt to EBITDA below 4.5x on a sustained basis and Free Cash Flow to Debt approaching 20%, could support an upgrade. Repayments of debt, whether voluntary or pursuant to the excess cash flow sweeps in the respective credit agreements, will be important to sustaining stronger credit metrics Overseas Shipholding Group, Inc. ("OSG"), a Delaware Corporation, based in in New York, New York, is one of the larger players in the ocean transportation of crude oil and petroleum products. The company operates separate fleets of internationally-flagged tankers trading in international markets, through its intermediate holding company subsidiary ,OSG International, Inc. ("OIN"), and US Jones Act qualified vessels operating mainly in US coastal markets through its intermediate holding company subsidiary OSG Bulk Ships, Inc. ("OBS"). These two subsidiaries are the respective primary obligors of the rated credit facilities, which OSG and their respective operating subsidiaries guaranty. Consolidated revenues were $975 million as of the last twelve months ended March 31, 2016. PARK OVERLOOK: Asks Court to Approve $100,000 of DIP Financing -------------------------------------------------------------- Park Overlook, LLC and Dawn Hotel of NY, LLC ask the U.S. Bankruptcy Court for the Southern District of New York, for authorization to obtain post-petition financing of up to $100,000 in the form of a revolving loan to each Debtor at an interest rate of 8% per annum. The Debtors are commercial shelters funded by the New York City Department of Homeless Services. The Debtors relate that while they generally operate on funding received from the Department of Homeless Services, operating expenses frequently arise for which the Debtors lack the immediate financial resources. The Debtors further relate that funding from the Department of Homeless Services is sometimes not received in a timely fashion. The Debtors tell the Court that traditionally, their Principals -- Gordon Duggins, Armando Dunn and Glenn (Sterling) Zinsmeyer -- have funded the Debtors' operating expenses as necessary from their own personal resources and recovered these short-term loans when the Department of Homeless Services funding was received. The Debtors further tell the Court that the Principals have agreed to continue providing funding for operating expenses, which is critical to the Debtors' successful reorganization. In light of the Debtors' status as debtors-in-possession, the Principals need authorization from the Court to protect their right to repayment for post-petition loans made to the Debtors as an administrative expense of the estate. The Debtors relate that the Principals have been required to make certain advances to the Debtors since the Petition Date to fund critical expenses. The Debtors seek to have these loans granted administrative expense priority. The proposed, unsecured DIP Financing provides that it will be repaid in the amount of the balance of principal and accrued interest due and owing upon the date which is the earlier of: (a) the receipt of funding from the Department of Homeless Services sufficient to repay the Loan, in the business judgment of the Principals; (b) confirmation of a plan of reorganization; and (c) conversion of the Debtor's case to chapter 7 of the Bankruptcy Code. A full-text copy of the Debtor's Motion, dated July 21, 2016, is available at https://is.gd/coTbN0 Park Overlook, LLC and Dawn Hotel of NY, LLC are represented by: Adrienne Woods, Esq. THE LAW OFFICES OF ADRIENNE WOODS, P.C. 459 Columbus Avenue, #314 New York, NY 10024 Telephone: (212)634-4459 Facsimile: (212)634-4462 Email: adrienne@woodslawpc.com About Park Overlook, LLC. Park Overlook, LLC and Dawn Hotel of NY, LLC filed chapter 11 petitions (Bankr. S.D.N.Y. Case Nos. 16-11354 and 16-11355) on May 12, 2016. The petitions were signed by Gordon Duggins, member. The Debtors are represented by Adrienne Woods, Esq., at The Law Offices of Adrienne Woods, P.C. The Debtors estimated its assets and debts at $0 to $50,000 at the time time of the filing. PELICAN REAL ESTATE: Seeks to Hire Hammer Herzog as Accountant -------------------------------------------------------------- Pelican Real Estate, LLC and its affiliates seek approval from the U.S. Bankruptcy Court for the Middle District of Florida to hire an accountant. The Debtors propose to hire Hammer Herzog and Associates P.A. to prepare and file their tax returns. The firm's professionals and their hourly rates are: Managing Principal $300 Principal $200 - $275 Director $175 - $225 Manager $150 - $175 Senior Accountant $125 - $150 Staff Accountant II $100 - $125 Staff Accountant $90 - $105 Paraprofessional $70 – $85 Administrative $50 Samuel Hammer, managing officer of Hammer Herzog, disclosed in a court filing that the firm does not hold or represent any interest adverse to the Debtors or their estates. About Pelican Real Estate Pelican Real Estate, LLC and its eight affiliates sought protection under Chapter 11 of the Bankruptcy Code (Bankr. M.D. Fla. Lead Case No. 16-03817) on June 8, 2016. The petition was signed by Jared Crapson, president of SMFG, Inc., manager of Pelican Management Company, LLC. The Debtors are represented by Elizabeth A. Green, Esq., at Baker & Hostetler LLP. At the time of the filing, Pelican Real Estate listed under $50,000 in both assets and debts. POMEROY PARTNERS: Allowed to Use Cash Collateral Up To Aug. 31 -------------------------------------------------------------- Judge Dennis Montali of the U.S. Bankruptcy Court for the Northern District of California, authorized Pomeroy Partners to use cash collateral on an interim basis, through August 31, 2016. Judge Montali held that Extensia Financial, LLC fka Telesis Community Credit Union, is adequately protected through the equity cushion in its asserted pre-petition collateral, consisting of commercial real property improved with a 70,000 square-foot office building, located at 1680-1700 Dell Ave., in Campbell, California. Judge Montali further held that the Debtor's proposed monthly payments of $43,305.37 are deemed adequate protection of Extensia's interest, to the extent that the value of the equity cushion in the Real Property is insufficient as adequate protection for Extensia, or to the extent that adequate protection is otherwise required. He ordered the continuation of the payments on a monthly basis. Judge Montali acknowledged that Clyde Berg, was adequately protected through the equity cushion in its asserted pre-petition collateral, consisting of a second-position interest in the Real Property. Judge Montali held that the Debtor's proposed monthly payments of $13,358 is deemed adequate protection of Mr. Berg's interest, to the extent that the value of the equity cushion in the Real Property is insufficient as adequate protection for Mr. Berg, or to the extent that adequate protection is otherwise required. He ordered that the payments commence no later than September 20, 2016 and that they continue monthly thereafter. Extensia and Mr. Berg were granted replacement liens on post-petition assets, limited to the same type of asset securing their pre-petition lien. Their replacement liens will be subordinated to the compensation and expense reimbursement allowed to any trustee that may be later appointed in the case. The final hearing on the Debtor's Cash Collateral Motion is scheduled on August 24, 2016 at 1:30. The deadline for the filing of objections to the Debtor's Motion is set on August 14, 2016. The deadline for the filing of replies to an opposition is set on August 21, 2016. A full-text copy of the Order, dated July 20, 2016, is available at https://is.gd/WiAzRl About Pomeroy Partners Pomeroy Partners filed a chapter 11 petition (Bankr. N.D. Cal. Case No. 16-51859) on June 23, 2016. The petition was signed by David C. Shaw, managing member. The Debtor is represented by Jon G. Brooks, Esq., at the Law Offices of Jon G. Brooks. The case is assigned to Judge Dennis Montali. At the time of the filing, the Debtor disclosed assets of $5.04 million and debts of $8.80 million. PRATT WELL: Servicing Equipment Auction on Aug. 25 -------------------------------------------------- Pratt Well Service, Inc., filed with U.S. Bankruptcy Court for the District of Kansas disclosing a sale of its oil and gas servicing equipment, including vehicles associated with the same, at public auction. The sale will not include any oil and gas production interests (leases, wells, working interests) nor any of the Debtor's real estate. In addition, a limited amount of equipment will be retained for servicing of the Debtor's own production interests. A complete list of items to be sold will be made available in advertising by Kruse Energy & Equipment Auctioneers, LLC. The public auction will be held on Aug. 25, 2016 at 9:00 a.m. (CST) at Pratt Area 4-H Center, Pratt County Fairgrounds, 81 Lake Road, Kansas, and by internet at the same time by logging onto: http://www.kruseenergy.com/or http://www.ironplanet.com/ From the proceed, the Debtor intends to pay in this order: (a) the costs of the sale, (b) any valid ad valorem taxes, (c) the liens of Intrust and 1st National Bank, and (d) the balance, if any, will be held pending subsequent order of the Court. Costs of the sale include: i. J. michael Morris, Debtor's Attorneys Fee - $2,000 ii. Klenda Austerman, LLC (expenses) - $_____ iii. Court Motion Fee - $176 iv. Auctioneer's commission - $______ v. Auctioneer's expenses - $35,000+ The deadline for objections to the intended sale, of the bidding procedures, the allowance and/or payment of administrative expense, and/or the motion for authority is on Aug. 1, 2016. If no objections are timely filed, a hearing will be held before the U.S. Bankruptcy Court, 401 N. Market, Room 150, Wichita, Kansas on Aug. 11, 2016 at 9:00 a.m., and the sale will be postponed until the objection(s) is/are resolved. About Pratt Well Service Pratt Well Service, Inc. sought Chapter 11 protection (Bankr. D. Kan. Case No. 16-11224) on June 30, 2016. Judge Robert E. Nugent is assigned to the case. The Debtor disclosed assets of $7.47 million and $4.94 million in debt. J. Michael Morris, Esq. at Klenda Austerman, LLC, serves as the Debtor's counsel. The petition was signed by Kenneth C. Gates, president. PRIMELINE UTILITY: Acquisitions No Impact on Moody's B3 CFR ----------------------------------------------------------- Moody's Investors Service says that PrimeLine Utility Services LLC's acquisitions of Chainco Power Holdings, Inc. ("Chainco") and Safeway Construction Enterprises, Inc. ("Safeway") are credit positive because they add scale and geographic diversification to PrimeLine without having a material impact on the credit metrics of the company. The transactions nevertheless do not impact PrimeLine's ratings, including its B3 Corporate Family Rating (CFR) or stable rating outlook because debt-to-EBITDA leverage remains within the range expected for the B3 CFR and liquidity is good. The acquisitions of Chainco and Safeway along with the purchase of Chainco's previously-leased equipment will be partially funded by a $140 million add-on to the senior secured first lien term loan due 2022. This add-on will increase PrimeLine's senior secured first lien term loan to $410 million. Pro-forma for the transaction, PrimeLine's debt-to-EBITDA leverage will decline to 5.1x from 5.6x (LTM 3/31/2016 incorporating Moody's standard adjustments) as the sponsor (First Reserve) will contribute approximately $60 million of equity to help finance the transactions. Given that the credit metrics will slightly improve but will still remain within the range expected for the B3 CFR, the company's ratings are unaffected. Moody's believes that the acquisitions of Chainco and Safeway fit within PrimeLine's strategy and expand the company's geographic reach and scale. Chainco is a provider of maintenance and installation services for electric transmission and distribution that will provide PrimeLine a presence in the Southeastern U.S., including Texas. Safeway is a services provider to gas utilities primarily in the New York City metropolitan area that will broaden PrimeLine's capabilities in the region. PrimeLine's geographic diversification is important because it moderates revenue and earnings volatility related to regional weather activity such as when jobs are delayed due to rain. Pro-forma for these two transactions, PrimeLine's revenue will increase to approximately $576 million for the LTM March 2016 (from $393 million on a standalone basis). The integration risk is low as these companies will be managed as separate operating entities but share administrative functions. Moody's maintains the following ratings on PrimeLine Utility Services LLC: Corporate Family Rating, B3 Probability of Default Rating, Caa1-PD $60 Million Senior Secured First Lien Revolving Credit Facility due 2020, B3 (LGD3) $410 Million (Including $140 Million Add-On) Senior Secured First Lien Term Loan B due 2022, B3 (LGD3) Outlook, Stable RATINGS RATIONALE The B3 CFR reflects PrimeLine's modest scale, volatile margins, high customer concentration, and still limited geographic and end-market diversification following the proposed Chainco and Safeway acquisitions. The company is primarily focused on providing installation, repair and maintenance services to electric utilities, but has some exposure to gas distribution and telecom companies. PrimeLine's margins have been volatile historically and dependent on the mix of business, the magnitude of higher margin storm restoration related revenues and, in some cases, acquisitions. PrimeLine's ratings are supported by the recurring nature of the repair and maintenance services it provides, the company's above average industry margins as well as its ability to provide a full range of services including design and engineering, storm restoration services and the installation, maintenance and repair of transmission, substation and distribution infrastructure to utility customers. The rating also benefits from favorable industry dynamics due to the aging of power lines and other infrastructure, and the trend towards outsourcing of maintenance work by utilities. Moody's continues to assess PrimeLine's liquidity as good supported by cash on the balance sheet ($17.3 million pro-forma for the transaction as of 3/31/2016) and positive projected free cash flow over the next 12 months. PrimeLine also has full access to its $60 million revolving facility due November 2020 which Moody's expects to remain unused. The stable rating outlook reflects Moody's view that the company's operating results will modestly improve over the next 12 to 18 months and result in gradually improved credit metrics. Moody's also anticipates that the company will carefully balance its leverage with its growth strategy. The ratings could experience upward pressure if the company increases its scale and geographic diversification while maintaining its strong margins, generates positive free cash flow and reduces its debt-to-EBITDA leverage ratio below 4.0x. Negative rating pressure could develop if deteriorating operating results, significant debt financed acquisitions or shareholder dividends result in funds from operations (cash flow from operations before working capital changes) declining below 10% of outstanding debt or debt-to-EBITDA leverage rising above 6.0x. A significant reduction in borrowing availability or liquidity could also result in a downgrade. Headquartered in Seattle, Washington, PrimeLine Utility Services LLC ("PrimeLine") is a domestically focused provider of design and engineering services, storm restoration services and the installation, maintenance and repair of transmission, substation and distribution infrastructure to electric utilities. Pro-forma for the acquisitions of Chainco and Safeway, PrimeLine's revenue for the LTM March 2016 was approximately $576 million. First Reserve is the sponsor of PrimeLine Utility Services LLC. PRIMELINE UTILITY: S&P Lowers Rating on Credit Facility to 'B' -------------------------------------------------------------- S&P Global Ratings said that it has lowered its issue-level ratings on Seattle-based PrimeLine Utility Services LLC's senior secured revolving credit facility and term loan to 'B' from 'B+' and revised its recovery ratings on the facility and term loan to '3' from '2'. The '3' recovery rating indicates S&P's expectation for meaningful (50%-70%; upper half of the range) recovery for lenders in the event of a payment default. At the same time, S&P affirmed its 'B' corporate credit rating on the company. The outlook is stable. "Our ratings on PrimeLine reflect the company's position in the highly fragmented and competitive utility services industry," said S&P Global credit analyst Robyn Shapiro. "Although the company's proposed debt-financed acquisitions of Chainco Power Holdings Inc. and Safeway Construction Enterprises Inc. will improve the diversity of its service offerings and expand its geographic footprint in the U.S., we continue to view PrimeLine's overall scale and geographic and end-market diversity as limited compared with the numerous larger entities in the engineering and construction sector that we rate." S&P expects the company's adjusted debt-to-EBITDA metric to remain above 5x after the proposed acquisitions; however, we note that PrimeLine's high debt leverage is partly offset by its positive FOCF generation. The stable outlook reflects S&P's belief that PrimeLine will continue to generate positive FOCF and maintain a FOCF-to-debt ratio in the low-single digit percent range because of the good demand for its maintenance services and its above-average EBITDA margins. S&P could lower its ratings on PrimeLine if the company's FOCF turned negative or if S&P believed that its debt-to-EBITDA metric would trend higher than 6x on a sustained basis. This could occur because of an unexpected decline in the company's maintenance business or from acquisition-related missteps. S&P considers an upgrade unlikely because it believes that PrimeLine's financial risk profile will remain highly leveraged under its financial sponsor. This is based on the company's high debt burden relative to its size and S&P's general view of its financial sponsor's appetite for financial risk. PRINTPACK HOLDINGS: S&P Cuts Rating on Proposed $275MM Loan to BB- ------------------------------------------------------------------ S&P Global Ratings lowered its issue-level rating on Printpack Holdings Inc.'s proposed $275 million first-lien senior secured term loan due 2023 to 'BB-' from 'BB' and revised its recovery rating on the loan to '2' from '1' after the company announced that it will be upsizing the loan by $25 million (was $250 million originally). The '2' recovery rating indicates S&P's expectation for substantial (70%-90%; upper half of the range) recovery in a payment default scenario. Printpack intends to use the proceeds from this term loan to add cash to its balance sheet and fund potential acquisitions. All of S&P's other ratings on Printpack Holdings Inc., including its 'B+' corporate credit rating, remain unchanged. RECOVERY ANALYSIS Key analytical factors S&P's simulated default scenario assumes a payment default occurring in 2020 due to a significant economic downturn that affects the demand for packaged consumer products, which is compounded by increased competitive pressure and adverse changes in raw material prices. S&P estimates that Printpack's EBITDA would need to decline by about 55% from current levels for the company to default, which is unlikely in the next 12-18 months. S&P assumes that Printpack would regain some of its lost volume and improve its margins while in bankruptcy, resulting in $65 million of EBITDA at emergence. Simulated default assumptions -- Simulated year of default: 2020 -- EBITDA at emergence: $65 million -- EBITDA multiple: 5.5x Simplified waterfall -- Net enterprise value (after 5% admin. costs): $340 million -- Valuation split (obligors/nonobligors): 92%/8% -- Priority claims: $111 million -- Value available to first-lien debt claims (collateral/noncollateral):$219 million/$9 million -- Secured first-lien debt claims: $278 million -- First-lien recovery expectations: 70%-90% (upper half of the range) Note: All debt amounts include six months of prepetition interest. Collateral value equals asset pledge from obligors after priority claims plus equity pledge from nonobligors after nonobligor debt. RATINGS LIST Printpack Holdings Inc. Corporate Credit Rating B+/Stable/-- Downgraded; Recovery Rating Revised To From Printpack Holdings Inc. $275M 1st-Ln Sr Secd Trm Ln Due 2023 BB- BB Recovery Rating 2H 1 R DUKE ENTERPRISES: Taps Joyce W. Lindauer as Legal Counsel ----------------------------------------------------------- R Duke Enterprises, LLC seeks approval from the U.S. Bankruptcy Court for the Northern District of Texas to hire Joyce W. Lindauer Attorney, PLLC. The firm will serve as the Debtor's legal counsel in connection with its Chapter 11 case. The primary attorneys and paralegal within the firm who will represent the Debtor and their hourly rates are: Joyce W. Lindauer $350 Sarah M. Cox $195 Jamie N. Kirk $195 Dian Gwinnup $105 Joyce Lindauer, Esq., disclosed in a court filing that the members of her firm are "disinterested persons" as defined in section 101(14) of the Bankruptcy Code. The firm can be reached through: Joyce W. Lindauer, Esq. Sarah M. Cox, Esq. Jamie N. Kirk, Esq. Joyce W. Lindauer Attorney, PLLC 12720 Hillcrest Road, Suite 625 Dallas, Texas 75230 Telephone: (972) 503-4033 Facsimile: (972) 503-4034 Email: joyce@joycelindauer.com About R Duke Enterprises R Duke Enterprises, LLC sought protection under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Tex. Case No. 16-32504) on June 28, 2016. RANCHO ARROYO: Cash Collateral Use Until October 19 OK ------------------------------------------------------ Judge Peter H. Carroll of the U.S. Bankruptcy Court for the Central District of California, authorized Rancho Arroyo Grande LLC to use cash collateral on an interim basis, until October 19, 2016. The Debtor was authorized to use cash collateral to pay for the operating expenses for its real property located at 455-599 Hi Mountain Road in Arroyo Grande, California, also known as the Ranch Property. Judge Carroll held that the secured creditors on the Ranch Property are adequately protected by virtue of their equity cushion on the Ranch Property and other collateral. The final hearing on the Debtor's Cash Collateral Motion will be continued to October 19, 2016 at 10:00 a.m. A Status Conference will also take place on October 19, 2016 at 10:00 a.m. A full-text copy of the Order, dated July 20, 2016, is available at https://is.gd/JCAUFK About Rancho Arroyo Grande LLC. Rancho Arroyo Grande LLC sought protection under Chapter 11 of the Bankruptcy Code (Bankr. C.D. Calif. Case No. 15-12171) on October 30, 2015. The petition was signed by Christopher J. Conway, managing member. The case is assigned to Judge Peter Carroll. The Debtor is represented by Karen L. Grant, Esq., at The Law Offices of Karen L. Grant. At the time of the filing, the Debtor disclosed $18.33 million in assets and $14.64 million in liabilities. REALOGY HOLDINGS: Borrows $355M Under Term Loan Credit Facility --------------------------------------------------------------- Realogy Group LLC, an indirect wholly-owned subsidiary of Realogy Holdings Corp., refinanced certain indebtedness by (1) borrowing a new tranche of term loans under its Term Loan A senior secured credit facility of $355 million with a five-year maturity and (2) refinancing its existing Term Loan B of $1.863 billion due March 2020 under its senior secured credit facility with a new Term Loan B of $1.1 billion due July 2022. Simultaneously, the net proceeds from the new tranche of term loans under the Term Loan A senior secured credit facility and the new Term Loan B together with revolver borrowings of $225 million under the senior secured credit facility and cash on hand were used to repay the existing $1.863 billion Term Loan B. References to "Intermediate Holdings" contained herein refer to Realogy Intermediate Holdings LLC, the direct wholly-owned subsidiary of Realogy Holdings and the holder of all of the outstanding membership interests of Realogy Group. First Amendment to Term Loan A Agreement On July 20, 2016, Realogy Group entered into a first amendment to the Term Loan A senior secured credit agreement, dated as of Oct. 23, 2015, with Intermediate Holdings, the lenders party thereto from time to time and JPMorgan Chase Bank, N.A., as administrative agent for the lenders. The First Amendment provides for a new tranche of Term Loan A borrowings, named "Term A-1 Loans," in the amount of $355 million that mature on July 20, 2021. JPMorgan Chase Bank, N.A., Merrill Lynch, Pierce, Fenner & Smith Incorporated, Barclays Bank plc, Citizens Bank, N.A., Credit Agricole Corporate and Investment Bank, Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA and SunTrust Robinson Humphrey, Inc. acted as joint lead arrangers and joint bookrunners for the New Term A-1 Loans. Consistent with the pricing on the existing Term A loans, the interest rates with respect to the New Term A-1 Loans under the Term Loan A Agreement are based on, at the Company's option, adjusted LIBOR plus 2.25% or ABR plus 1.25%, in each case subject to adjustment based on the Company's senior secured leverage ratio. The First Amendment expands the pricing grid for the New Term A-1 Loans to include a new pricing adjustment where the senior secured leverage ratio is less than 2.00% as follows: Senior Secured Applicable Applicable Leverage Ratio LIBOR Margin ABR Margin -------------- ------------ ---------- Greater than 3.50 to 1.00 2.50% 1.50% Less than or equal to 2.25% 1.25% 3.50 to 1.00 but greater than or equal to 2.50 to 1.00 Less than 2.50 to 1.00 but 2.00% 1.00% greater than or equal to 2.00 to 1.00 Less than 2.00 to 1.00 1.75% 0.75% The New Term Loan A-1 Loans provide for quarterly amortization payments on the last day of each quarter, totaling per annum 2.5%, 2.5%, 5.0%, 7.5% and 10.0% of the original principal amount of the New Term Loan A-1 Loans, commencing Sept. 30, 2016, with the balance of the New Term A-1 Loans due in full on July 20, 2021. All other material provisions under the Term Loan A Agreement remain substantially unchanged. Third Amendment to Amended and Restated Credit Agreement On July 20, 2016, Realogy Group entered into a third amendment to the Amended and Restated Credit Agreement, dated as of March 5, 2013, as amended, among Intermediate Holdings, Realogy Group, the several lenders from time to time parties thereto, JPMorgan Chase Bank, N.A., as administrative agent, and the other agents parties thereto. The Third Amendment replaced the existing $1.863 billion term loan issued under the Credit Agreement through a refinancing of the existing term loan with a new $1.1 billion Term Loan B due July 20, 2022. Net proceeds from the New Term A-1 Loans, the New Term Loan B, revolver borrowings of $225 million under the Credit Agreement and cash on hand were used to repay the existing Term Loan B. The interest rate and amortization with respect to the New Term Loan B remains unchanged from the existing Term Loan B and all other material provisions under the Credit Agreement remain substantially unchanged. JPMorgan Chase Bank, N.A., BMO Capital Markets Corp., Barclays Bank plc, Citigroup Global Markets Inc., Credit Agricole Corporate and Investment Bank, Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA and SunTrust Robinson Humphrey, Inc. acted as joint lead arrangers and joint bookrunners for the New Term Loan B. Affiliates of JPMorgan Chase Bank, N.A., as well as certain of the lenders party to the agreements have engaged, and may in the future engage, in investment banking, commercial banking and other financial advisory and commercial dealings with the Company and its affiliates. They have received (or will receive) customary fees and commissions for these transactions. About Realogy Holdings Corp. Realogy Holdings Corp. (NYSE: RLGY) is a global leader in residential real estate franchising with company-owned real estate brokerage operations doing business under its franchise systems as well as relocation and title services. Realogy's brands and business units include Better Homes and Gardens(R) Real Estate, CENTURY 21(R), Coldwell Banker(R), Coldwell Banker Commercial(R), The Corcoran Group(R), ERA(R), Sotheby's International Realty(R), NRT LLC, Cartus and Title Resource Group. Collectively, Realogy's franchise system members operate approximately 13,500 offices with 251,000 independent sales associates doing business in 104 countries around the world. Realogy is headquartered in Madison, N.J. Realogy Holdings reported net income attributable to the Company of $143 million on $5.32 billion of net revenues for the year ended Dec. 31, 2014, compared to net income attributable to the Company of $438 million on $5.28 billion of net revenues during the prior year. As of March 31, 2016, Realogy Holdings had $7.40 billion in total assets, $5.04 billion in total liabilities and $2.35 billion in total equity. * * * In the Aug. 1, 2013, edition of the TCR, Moody's Investors Service upgraded the corporate family rating of Realogy Group to to B2 from B3. The upgrade to B2 CFR is driven by expectations for ongoing strong financial performance, supported by Realogy's recently-concluded debt and equity financing activities and a continuing recovery in the US existing home sale market. As reported by the TCR on Feb. 18, 2013, Standard & Poor's Ratings Services raised its corporate credit rating on Realogy Corp. to 'B+' from 'B'. "The one notch upgrade in the corporate credit rating to 'B+' reflects an increase in our expectation for operating performance at Realogy in 2013, and S&P's expectation that total lease adjusted debt to EBITDA will improve to the low-6x area and funds from operations (FFO) to total adjusted debt will be improve to the high-single-digits percentage area in 2013, mostly due to EBITDA growth in the low- to mid-teens percentage area in 2013," S&P said. RED RIVER SOUTH: Voluntary Chapter 11 Case Summary -------------------------------------------------- Debtor: Red River South Enterprises, LLC PO Box 78255 Shreveport, LA 71137-8255 Case No.: 16-11226 Chapter 11 Petition Date: July 21, 2016 Court: United States Bankruptcy Court Western District of Louisiana (Shreveport) Judge: Hon. Jeffrey P. Norman Debtor's Counsel: Robert W. Raley, Esq. AYRES, SHELTON, WILLIAMS, BENSON & PAINE, LLC 333 Texas Street, 1400 Regions Tower Shreveport, LA 71101 Tel: (318) 227-3500 Fax: (318) 227-3822 E-mail: rrbankruptcy@arklatexlaw.com robertraley@arklatexlaw.com Estimated Assets: $500,000 to $1 million Estimated Liabilities: $1 million to $10 million The petition was signed by Leon S. Miletello, Jr., managing member - Single Member LLC. The Debtor did not include a list of its largest unsecured creditors when it filed the petition. RELIABLE RACING: Can Use Cash Collateral Until Aug. 13 ------------------------------------------------------ Judge Robert E. Littlefield, Jr. of the U.S. Bankruptcy Court for the Northern District of New York, authorized Reliable Racing Supply, Inc. to use cash collateral on an interim basis, through August 13, 2016. The approved Budget covers the period from July 14, 2016 to August 13, 2016. It provides for total disbursements in the amount of $98,679.33. Judge Littlefield authorized TD Bank to withdraw from the Debtor's Debtor in Possession Account, funds that exceed a balance of $40,000, and to apply those funds to the amount due under the TD Bank Loan Documents. He further authorized TD Bank to transfer from the DIP Account such funds that exceed the DIP Balance to the Debtor's Excess Cash Account at TD Bank, as well as freeze and block withdrawals from the Excess Cash Account, and upon the expiration of the Court's Order on August 13, 2016, apply the funds in the Excess Cash Account to the amount due under the TD Bank Loan Documents. A further interim hearing on the Debtor's Motion is scheduled on August 11, 2016 at 1:00 p.m. A full-text copy of the Order, dated July 22, 2016, is available at https://is.gd/qcZvhN A full-text copy of the approved Budget, dated July 22, 2016, is available at https://is.gd/N1u85h About Reliable Racing Supply, Inc. dba Inside Edge Ski & Bike Reliable Racing Supply, Inc. dba Inside Edge Ski & Bike filed a chapter 11 petition (Bankr. N.D.N.Y. Case No. 16-10619) on April 7, 2016. The petition was signed by John Jacobs, president. The Debtor is represented by Meghan M. Breen, Esq., at Lemery Greisler LLC. The case is assigned to Judge Robert E. Littlefield, Jr. The Debtor disclosed assets of $2.98 million and liabilities of $2.55 million as of February 29, 2016. RIVER NORTH 414: Wants to Use Cash, Transfer Funds to DIP Account ----------------------------------------------------------------- River North 414 LLC asks the U.S. Bankruptcy Court for the Northern District of Illinois for authorization to use cash collateral. The Debtor relates that while it does not believe that Republic Bank of Chicago holds a perfected security interest in the Debtor’s accounts, it does acknowledge that Republic Bank does hold valid, properly perfected security interests in substantially all of the Debtor’s other personal property assets, including food and beverage inventory, and the proceeds thereof. The Debtor further relates that while Republic Bank has not objected to the Debtor’s use of estate cash to operate its business and to pay necessary operating expenses, it wishes to formalize such use through its Motion. The Debtor tells the Court that it wishes to ensure that all its assets are being held by the Debtor rather than by third parties. The Debtor further tells the Court that certain of the Debtor's cash was transferred to two deposit accounts held by a non-Debtor third party, Orleans District LLC, and cash belonging to the Debtor remains in those accounts currently. The Debtor requests that the Court order that all funds generated by the Debtor’s business that are held in non-Debtor accounts be transferred to the debtor-in-possession accounts opened by the Debtor. The Debtor proposes to provide Republic Bank with replacement liens on its existing collateral, to secure repayment of an amount equal to any diminution in value of Republic's Cash Collateral. The Debtor's Motion is scheduled for hearing on August 8, 2016 at 9:30 a.m. A full-text copy of the Debtor's Motion, dated July 22, 2016, is available at https://is.gd/HLFgMI O.P., L.L.C./Spectrum Properties is represented by: Barry A. Chatz, Esq. Kevin H. Morse, Esq. ARNSTEIN & LEHR LLP 120 South Riverside Plaza Suite 1200 Chicago, IL 60606 Telephone: (312) 876-6670 Email: bachatz@arnstein.com khmorse@arnstein.com Republic Bank of Chicago is represented by: Edward P. Freud, Esq. RUFF, FREUD, BREEMS & NELSON, LTD. 200 North LaSalle Street, Suite 2020 Chicago, IL 60601 Telephone: (312) 263-3890 Email: epfreud@rfbnlaw.com Jason Scheffler is represented by: Patrick M. Jones, Esq. Email: pmj@patjonesPLLC.com About River North 414 LLC. River North 414 LLC and Premium Themes, Inc., based in Chicago, Illinois., filed a Chapter 11 petition (Bankr. N.D Ill. Case Nos. 16-17324 and 16-17325) on May 24, 2016. The Hon. Janet S. Baer presides over the case. Thomas R. Fawkes, Esq., at Goldstein & McClintock, as bankruptcy counsel. In its petition, the Debtors estimated $100,000 to $500,000 in assets and $1 million to $10 million in liabilities. The petitions were signed by Jesse T. Boyle, authorized officer. RONALD BARTLETT: State of Georgia Wants Trustee or Dismissal ------------------------------------------------------------ The District Attorney for the Macon Judicial Circuit for the State of Georgia on July 19, 2016, filed a motion asking the U.S. Bankruptcy Court for the Middle District of Georgia to enter an order pursuant to 11 U.S.C. Sec. 1104(a) directing the appointment of a Chapter 11 trustee, or, in the alternative, dismissal of the case pursuant to 11 U.S.C. Sec. 1112(b)(4). K. David Cooke, Jr., the District Attorney, says that the Debtors owned and/or operated numerous businesses, including, but not limited to: (1) Peach Auction Sales, Inc.; (2) H & B Investments; (3) Friend Bar and Grill, Inc.; (4) Captain Jacks Crab Shack, Inc; (5) Chevy's of Warner Robins, Inc., (6) Ronnie Bartlett d/b/a Captain Jack's Crab Shack; (7) Ronnie Bartlett d/b/a Chevy's. The Debtors continue to operate Peach Auction Sales but claim not to receive any income from the same. In seeking a trustee or dismissal, the District Attorney pointed out that: 1. The Debtors received large sums of cash in the operation of the business prior to filing for bankruptcy and did not deposit the same in any bank accounts and/or deposited the monies into bank accounts that have not been disclosed in the bankruptcy case. A large amount of the income was derived from the operation of electronic gaming machines. 2. On May 5, 2015, the movant filed a complaint in State Court pursuant to the Georgia RICO Act and the Georgia Gambling Act related to an illegal gambling enterprise wherein the Debtors netted in excess of $25,000 from illegal gambling. A receiver was appointed in the State Court Action. 3. At the meeting of creditors on Jan. 4, 2016, numerous "mistakes", errors and omissions were discovered in the Debtor's Schedules and Statements of Financial Affairs. No amended schedules and statements have been filed. 4. Consent orders were entered on April 28, 2016, related to the movant's motions to conduct Rule 204 examinations. The Debtors have failed and refused to produce certain court-ordered documents. Ronald D. Bartlett and Lee E. Bartlett filed a Chapter 11 petition (Bankr. M.D. Ga. Case No. 15-52742) on Nov. 30, 2015. ROSLYN SEFARDIC: Exclusive Plan Filing Deadline Moved to Sept. 21 ----------------------------------------------------------------- The Hon. Louis A. Scarcella of the U.S. Bankruptcy Court for the Eastern District of New York has extended, at the behest of Roslyn Sefardic Center Corp., the time within which the Debtor has the exclusive right to file a plan of reorganization and to solicit acceptances of the plan for 120 days through and including Sept. 21, 2016, and Nov. 22, 2016, respectively. As reported by the Troubled Company Reporter on May 26, 2016, the Debtor has entered into preliminary discussions with a third party who has expressed an interest in the Debtor and the Property and may either (a) fund a plan of reorganization or (b) acquire the assets of the Debtor. Currently, this third-party has started performing diligence with respect to the Debtor's assets and liabilities. The Debtor is hopeful that they can come to an agreement that will maximize the value of its estate and allow it to reorganize its outstanding obligations. The Debtor submits that while discussions are in its nascent states, its Exclusive Periods should be preserved to avoid any distractions or competing plans. Roslyn Sefardic Center Corp. is a religious non-for-profit corporation that operates a synagogue on its real property and improvements located on 1 Potters Lane, Roslyn Heights, New York. It filed for Chapter 11 bankruptcy protection (Bankr. E.D.N.Y. Case No. 16-70299) on Jan. 25, 2016. The Debtor is represented by Arnold Mitchell Greene, Esq., at Robinson Brog Leinwand Greene Genovese & Gluck P.C. RUBLE HOLDINGS: Taps Earline Sawyer as Real Estate Broker --------------------------------------------------------- Ruble Holdings, LLC seeks approval from the U.S. Bankruptcy Court for the Southern District of Mississippi to hire a real estate broker. The Debtor proposes to hire Earline Sawyer to market and sell its real property located at 529 Ulman Avenue, Bay St. Luis, Mississippi. Ms. Sawyer will receive 6% of the gross sale price, which the Debtor will pay at closing. In a court filing, Ms. Sawyer disclosed that she does not have any interest adverse to the Debtor's estate. Ms. Sawyer maintains an office at: Earline Sawyer Sawyer Real Estate 2300 14th Street Gulfport, Mississippi 39501 Phone: (228) 863-0232 The Debtor can be reached through its counsel: Patrick A. Sheehan, Esq. Sheehan Law Firm, PLLC 429 Porter Avenue Ocean Springs, MS 39564 Phone: (228) 875-0572 Fax: (228) 875-0895 About Ruble Holdings Ruble Holdings, LLC sought protection under Chapter 11 of the Bankruptcy Code (Bankr. S. D. Miss. Case No. 14-51336) on August 26, 2014. The petition was signed by John H. Ruble, managing member. At the time of the filing, the Debtor estimated its assets at $1 million to $10 million and debts at $500,000 to $1 million. SAFWAY GROUP: Moody's Affirms B3 Corporate Family Rating -------------------------------------------------------- Moody's Investors Service affirmed Safway Group Holding LLC's B3 Corporate Family Rating following the company's announcement that it will refinance its existing debt. The refinancing will weaken key credit metrics slightly, however Moody's forward view expects better operating performance from Safway to keep these measures in line with the current rating. In related actions, Moody's assigned a B3 rating to Safway's proposed 7-year $775 million first lien term loan. The proposed capital structure, that also includes a new $200 million asset-backed facility (not rated), will be used to refinance Safway's existing senior secured notes (B3 rating assigned to existing notes will be withdrawn upon successful close of transaction) and pay related transaction fees. The outlook remains stable. The following is a summary of Moody's ratings and rating actions taken for Safway: -- Corporate Family Rating affirmed at B3; -- Probability Default Rating affirmed at B3-PD; -- $775 million first lien term loan due 2023 assigned B3 (LGD4); Outlook Actions: -- Outlook, remains Stable RATINGS RATIONALE Moody's said, "The B3 Corporate Family Rating ("CFR") reflects Safway's relatively high pro forma adjusted leverage with limited free cash flow generation capacity. The proposed refinancing will increase pro forma adjusted leverage for 1Q16 to about 5.0x, which is in line with a B3 rating. However, Moody's anticipates Safway to continue to achieve positive operating results, which should have a favorable impact on debt credit metrics. Our forward view projects adjusted debt-to-EBITDA declining towards 4.5x over the next 12 to 18 months (all ratios incorporate Moody's standard accounting adjustments)." The B3 rating assigned to the proposed $775 million first lien term loan due 2023 is in line with the CFR as it represents the preponderance of debt in Safway's capital structure. The term loan has a first lien on Safway's inventory and substantially all of its non-current assets. Safway's direct parent company, Badger Intermediate Holding LLC ("Badger"), provides a downstream guarantee, and its material domestic subsidiaries provide an upstream guarantee. The term loan amortizes 1% per year with a bullet payment at maturity and includes a $150 million accordion feature. Moody's said, "The stable rating outlook reflects our view that Safway's credit metrics will remain in line with its current rating as the company continues to benefit from its scale and market position to compete for industrial maintenance and turnaround projects in the North American refining, chemical, power industries and commercial construction segments. The outlook also reflects Moody's expectation that Safway will maintain sufficient availability under its revolving credit facility during the next 12 to 18 months." WHAT COULD CHANGE RATINGS UP/DOWN Moody's said, "Positive rating actions could ensue if Safway's operating performance exceeds our expectations, resulting in improved credit metrics as follows: -- Interest coverage (measured as (EBITDA-CAPEX)-to-interest expense), sustained above 2.0x. -- Adjusted debt-to-EBITDA sustained below 5.25x. -- Achieving sustainable operational improvement and generating significant levels of operating earnings and free cash flows. "Alternatively, negative rating actions may occur if Safway's operating performance falls below our expectations, or if the company experiences a weakening in financial performance resulting in the following adjusted metrics: -- Interest coverage below 1.0x. -- Adjusted debt-to-EBITDA sustained above 6.5x. -- In addition, if Safway pursues further cash distributions or large debt-financed acquisitions that do not prove sufficiently accretive relative to incremental debt. -- A deteriorating liquidity profile could pressure the ratings as well. Corporate Profile: Headquartered in Waukesha, Wisconsin, Safway Group Holding LLC ("Safway") is a provider of scaffolding, hoisting, insulation, coatings and other services supporting the refining, chemical, power industries and commercial construction in North America. Safway is wholly owned by Odyssey Investment Partners ("Odyssey") through one of its affiliates. For the last twelve months ended March 31, 2016 Safway had approximately 1,449 million in revenues. SBM DEEP: DBRS Lowers Senior Secured Notes Rating to BB(high) ------------------------------------------------------------- DBRS Limited downgraded the 3.50% Senior Secured Notes due 2021 (the Notes) issued by SBM Deep Panuke S.A. (the Issuer) to BB (high) from BBB (low). The trend remains Negative. The downgrade of the Notes follows DBRS' rating action on Encana Corporation (Encana) on July 15, 2016, in which DBRS downgraded the Issuer Rating of Encana to BBB (low) from BBB, and maintained the Negative trend on Encana’s Issuer Rating. Encana is the lessee of the Deep Panuke Production Facility Centre (the Platform) under a Charter Agreement that extends five months beyond the full amortization period of the Notes, which will be fully amortized by December 2021. Under the Charter Agreement, Encana is responsible for paying a fixed lease rate to the Issuer for use of the Platform. If Encana elects to terminate the Charter Agreement, it must pay a Termination Fee, which, together with the proceeds of the debt service reserve account and other cash balances of the Issuer, would be sufficient to fully repay the Notes. The rating on the Notes is therefore strongly influenced by Encana’s ratings. The rating of the Notes is one notch lower than Encana’s Issuer Rating. Under the Charter Agreement, if the Issuer or SBM Offshore is bankrupt or insolvent, Encana may terminate the Charter Agreement and would then have no further obligation to pay the lease rate. Currently, the performance of the Platform complies with the terms of the Charter Agreement. SECURITY DEVICES: Incurs $472-K Net Loss in May 31 Quarter ---------------------------------------------------------- Security Devices International, Inc. (SDI) filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $472,224 on $21,719 of sales for the three months ended May 31, 2016, compared to a net loss of $468,982 on $38,073 of sales for the same period in 2015. For the six months ended May 31, 2016, the Company listed a net loss of $852,026 on $52,222 of sales, compared to a net loss of $957,475 on $74,605 of sales for the same period in the prior year. As of May 31, 2016, SDI had $1.23 million in total assets, $1.50 million in total liabilities and a total stockholders' deficit of $265,359. The Company has incurred net losses since entering the oil and gas exploration industry and as of three months ended May 31, 2016 has an accumulated deficit of $33,479,429 and a working capital deficit of $19,118,706 which raises substantial doubt about the Company's ability to continue as a going concern. The Company has incurred a cumulative loss of $27,445,233 from inception to May 31, 2016. The Company has funded operations through the issuance of capital stock and convertible debentures. The Company has started to generate revenue from operations. However, it still expects to incur significant expenses before becoming profitable. The Company’s future success is dependent upon its ability to raise sufficient capital or generate adequate revenue, to cover its ongoing operating expenses, and also to continue to develop and be able to profitably market its products. These factors raise substantial doubt about its ability to continue as a going concern. A full-text copy of the Form 10-Q is available for free at: https://is.gd/SVttO5 Fitchburg, Mass.-based Security Devices International, Inc., (SDI) is a less-lethal defense technology company, specializing in the innovative next generation solutions for security situations that do not require the use of lethal force. SDI has implemented manufacturing partnerships to assist in the deployment of their patented and patent pending family of products. These products consist of the current manufacture of Blunt Impact Projectile 40mm (BIP) line of products, and the future Wireless Electric Projectile 40mm (WEP). Schwartz Levitsky Feldman, LLP said there is substantial doubt in the ability of Security Devices International, Inc., to continue as a going concern. "The Company has suffered recurring losses from operations and has not earned significant revenue. These conditions raise substantial doubt about its ability to continue as a going concern," the auditing firm said. The Company reported a net loss of $2,550,438 for the fiscal year ended Nov. 30, 2015. At Nov. 30, 2015, the Company had total assets of $2,166,418 against total liabilities of $1,571,921 and shareholders' equity of $594,497. It had an accumulated deficit of $26,593,207. SEMILEDS: Incurs $3.26-Mil. Net Loss in Q2 Ended May 31 ------------------------------------------------------- SemiLEDs Corporation filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $3.26 million on $2.38 million of revenues for the three months ended May 31, 2016, compared to a net loss of $3.05 million on $3.51 million of revenues for the same period in 2015. For the nine months ended May 31, 2016, the Company recorded a net loss of $9.12 million on $8.26 million of revenues, compared to a net loss of $10.32 million on $11 million of revenues for the same period last year. As of May 31, 2016, the Company had $30.70 million in total assets, $10.27 million in total liabilities and a total stockholders' equity of $20.43 million. As of May 31, 2016 and August 31, 2015, the Company had cash and cash equivalents of $3.5 million and $4.8 million, respectively, which were predominately held in U.S. dollar denominated demand deposits and/or money market funds. SemiLEDs received the cash down payment of $3 million on December 14, 2015, for the potential sale of their headquarters building, at a sales price of $5.2 million. The sale is scheduled to close on December 31, 2017. At any time before December 31, 2017, they have the right to cancel the agreement or sell the building to any other third party, concurrently with the repayment of all the cash balance received along with interest payable to the buyer. SemiLEDs have incurred significant losses since inception. They have suffered losses from operations of $13.3 million and $24.8 million, gross losses on product sales of $4.1 million and $11.3 million, and net cash used in operating activities of $4.5 million and $15.7 million for the years ended August 31, 2015 and 2014, respectively. Loss from operations for the three and nine months ended May 31, 2016 were $3.1 million and $9.0 million, respectively. Gross loss on product sales for the three and nine months ended May 31, 2016 were $1.5 million and $3.7 million, respectively. Further, at May 31, 2016, the Company’s cash and cash equivalents was down to $3.5 million. These facts and conditions raise substantial doubt about the Company’s ability to continue as a going concern. A full-text copy of the company's quarterly report is available for free at: https://is.gd/6ikuNt Taiwan-based SemiLEDs Corporation and its subsidiaries develop, manufacture and sell high performance light emitting diodes (LEDs). The company's core products are LED chips and LED components, as well as lighting products. SemiLEDs customers are concentrated in a few select markets, including Taiwan, the United States and China. SERVE & EDUCATE: U.S. Trustee Unable to Appoint Committee --------------------------------------------------------- The Office of the U.S. Trustee disclosed in a court filing that no official committee of unsecured creditors has been appointed in the Chapter 11 case of Serve & Educate, LLC. Serve & Educate, LLC sought protection under Chapter 11 of the Bankruptcy Code (Bankr. M.D. Fla. Case No. 16-05080) on June 14, 2016. The Debtor is represented by Scott A. Rosin, Esq., at Scott A. Rosin, P A. SETAI 1908: Voluntary Chapter 11 Case Summary --------------------------------------------- Debtor: Setai 1908, LLC 101 20th Street, Suite 1908 Miami Beach, FL 33139 Case No.: 16-20115 Nature of Business: Single Asset Real Estate Chapter 11 Petition Date: July 21, 2016 Court: United States Bankruptcy Court Southern District of Florida (Miami) Judge: Hon. Robert A Mark Debtor's Counsel: Michael S Hoffman, Esq. HOFFMAN, LARIN & AGNETTI, P.A. 909 North Miami Beach Blvd #201 Miami, FL 33162 Tel: (305) 653-5555 E-mail: Mshoffman@hlalaw.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Eric Grabois, authorized agent. The Debtor did not include a list of its largest unsecured creditors when it filed the petition. SETAI 3509: Voluntary Chapter 11 Case Summary --------------------------------------------- Debtor: Setai 3509, LLC 101 20th Street, Suite 3509 Miami Beach, FL 33139 Case No.: 16-20114 Nature of Business: Single Asset Real Estate Chapter 11 Petition Date: July 21, 2016 Court: United States Bankruptcy Court Southern District of Florida (Miami) Judge: Hon. Laurel M Isicoff Debtor's Counsel: Michael S Hoffman, Esq. HOFFMAN, LARIN & AGNETTI, P.A. 909 North Miami Beach Blvd #201 Miami, FL 33162 Tel: (305) 653-5555 E-mail: Mshoffman@hlalaw.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $10 million to $50 million The petition was signed by Eric Grabois, authorized agent. The Debtor did not include a list of its largest unsecured creditors when it filed the petition. SHEEHAN PIPE LINE: Wants to Use Zurich's Alleged Cash Collateral ---------------------------------------------------------------- Sheehan Pipe Line Construction Company asks the U.S. Bankruptcy Court for the Northern District of Oklahoma for authorization to use the alleged cash collateral of Zurich American Insurance Company and Fidelity & Deposit Company of Maryland. The Court had previously entered a Final Order approving the use of cash collateral. The Final Order set forth an agreed budget through the week of July 22, 2016 and provided that the parties could agree in writing to extend the cash collateral order and budget for periods after the expiration of the initial budget. The Debtor relates that the parties had been in discussion with regard to the issues in the pending adversary proceeding which seeks to determine, among other things, Zurich's rights in and to the revenue generated by the rental of certain equipment in which Zurich claims a security interest. The Debtor further relates that the parties discussed not only the litigation, but working towards an agreement on a subsequent budget and possible global resolution of the issues concerning Zurich. The Debtor contends that not once during their discussions did Zurich advise the Debtor that it intended to convert the case or that it would unequivocally oppose the continued use of its alleged cash collateral. The Debtor tells the Court that since the first cash collateral order Zurich’s "exposure" has come into focus through its payment and denial of bonded claims. The Debtor further tells the Court that as of July 11, 2016, Zurich had paid approximately $19 million, approved additional payments of approximately $10.5 million, and denied approximately $6.1 million, leaving approximately $1.5 million of bonded claims in an undetermined status. The Debtor adds that Zurich’s topside "exposure" on bonded claims is between $29.5 and $31 million. The Debtor contends that Zurich's "collateral" includes all sources of alleged payment from such exposure and that the total amount of this "collateral" available to Zurich is $56 million or nearly twice the amount of Zurich's topside exposure. The Debtor says that it granted Zurich replacement liens, solely to the extent of any diminution in value of Zurich's alleged cash collateral, on all of the Debtor's assets, which the Debtor proposes to grant by virtue of its current motion as well. The Debtor further says that there are unencumbered assets with substantial value available to provide even more adequate protection, and that these unencumbered assets have an aggregate value somewhere between $2.3 million and $4 million. The Debtor tells the Court that it is not seeking to modify or alter the previous order governing usage of cash collateral, but rather is seeking subsequent authorization through a separate order in nearly identical form, for approval of an extended budget period contemplated by the Final Order authorizing the use of cash collateral. The Debtor's proposed Budget covers a period of 10 weeks, which is in addition to the original 14-week Budget, and starts on the week which begins on July 25, 2016 and ends on the week which begins on September 26, 2016. The Budget provides for total operating expenses in the amount of $1,162,057. The Debtor asserts that the Court should approve the use of additional cash collateral and enter an interim order substantially similar to the Final Order authorizing use of cash collateral over any objection of Zurich. The Debtor further asserts that the use of the cash is of the utmost importance to the preservation and maintenance of the value of the Debtor. It contends that Zurich is adequately protected. A full-text copy of the Debtor's Motion, dated July 20, 2016, is available at https://is.gd/Dchp50 About Sheehan Pipe Line Construction Company Sheehan Pipe Line Construction Company, a contractor that constructs pipelines in various states across the country, filed a voluntary petition for relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Okla. Case No. 16-10678) on April 15, 2016, listing total assets of $90.2 million and total debt of $68.4 million. The petition was signed by Robert A. Riess, Sr., as president and CEO. Mary E. Kindelt, Esq., Chad J. Kutmas, Esq., and Gary M. McDonald, Esq., at McDonald, McCann & Metcalf & Carwile, LLP, serves as counsel to the Debtor. Lawyers at Foley & Lardner LLP represent the creditors' committee. The case is pending before Judge Terrence L. Michael. SIDNEY TRANSPORTATION: Taps Diller and Rice as Legal Counsel ------------------------------------------------------------ Sidney Transportation Services, LLC seeks approval from the U.S. Bankruptcy Court for the Northern District of Ohio to hire Diller and Rice, LLC. The firm will serve as the Debtor's legal counsel in connection with its Chapter 11 case. Steven Diller and Eric Neuman, the attorneys designated to represent the Debtor, will be paid $300 per hour and $225 per hour, respectively. In a court filing, Mr. Neuman disclosed that he and the associates employed by the firm have not represented any creditor of Sidney Transportation. The firm can be reached through: Eric R. Neuman, Esq. Diller and Rice, LLC 1105-1107 Adams Street Toledo, OH 43604 Tel: 419-724-9047 Email: eric@drlawllc.com Email: Steven@drlawllc.com Email: Kim@drlawllc.com About Sidney Transportation Sidney Transportation Services, LLC sought protection under Chapter 11 of the Bankruptcy Code (Bankr. N. D. Ohio Case No. 16-32270) on July 18, 2016. The petition was signed by Steven Woodruff, owner/managing member. The case is assigned to Judge John P. Gustafson. 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. SINDESMOS HELLINIKES: Gilbane Offers $5.4M for Deerfield Property ----------------------------------------------------------------- Sindesmos Hellinikes-Kinotitos of Chicago ("Holy Trinity") asks the U.S. Bankruptcy Court for the Northern District of Illinois to authorize the sale of the property located at 1085 Lake Cook Road, Deerfield, Illinois, to Gilbane Development Co. or its assignee for $5,400,000. A hearing for the Motion is set for Aug. 11, 2016, at 11:00 a.m. (CDST). The objection deadline is Aug. 4, 2016. In 2004, Holy Trinity purchased the Deerfield Property for the purpose of relocating its parochial school known as the Socrates Greek-American Elementary School, which was founded in 1908, to the Deerfield Property. In order to pay the costs of renovating and improving the Deerfield Property as an educational facility, the Debtor, as borrower, obtained a loan in the principal amount of $12,191,000 under a certain Bond and Loan Agreement dated June 1, 2007 ("BLA"). The Illinois Finance Authority ("IFA") issued an Illinois Finance Authority Educational Facility Revenue Bond (Hellenic American Academy Project) Series, 2007 in the principal amount of $12,191,000 ("Original Bond") and MB Financial Bank was the sole purchaser of the Original Bond. On Feb. 25, 2010, IFA, MB Financial, the Debtor and the Academy entered into a First Amendment to the Bond and Loan Agreement. In accordance with the BLA Amendment, the IFA issued an Illinois Finance Authority Educational Facility Revenue Bond (Hellenic American Academy Project), Series 2007 in the principal amount of $6,910,466 ("New Bond"). MB Financial is the sole owner and holder of the New Bond. Despite these adequate protection payments, the current indebtedness due to MB Financial is in excess of $6,600,000. To maximize value for the estate, the Debtor believes that it is crucial to sell the Deerfield Property in order to pay-down a substantial portion of the New Bond indebtedness and, as a result, reduce the amount of interest accruing on the current outstanding principal balance of the New Bond. On Jan. 25, 2016, the Court entered an order allowing the Debtor to employ Richard Kahan and his real estate firm, KB Real Estate to market for sale the Deerfield Property. Upon his employment, Mr. Kahan engaged in extensive marketing of the Deerfield Property. The Gilbane offer, which is the highest and best offer the Debtor has obtained as a result of Mr. Kahan's extensive marketing efforts, is reflected in the Real Estate Purchase and Sale Agreement ("Purchase Agreement" ). The Debtor and MB Financial have discussed the sale process at length and believe that the Purchase Agreement is the result of arm's-length negotiations designed to achieve the highest possible price for the Deerfield Property under the circumstances. A copy of the Purchase Agreement attached to the Motion is available for free at: http://bankrupt.com/misc/Sindesmos_84_Sale_M.pdf About Holy Trinity Sindesmos Hellinikes-Kinotitos of Chicago, a/k/a Holy Trinity Helennic Orthodox Church, a/k/a Holy Trinity Orthodox Church of Chicago, sought Chapter 11 protection (Bankr. N.D. Ill. Case No. 15-22446) on June 29, 2015. Judge Timothy A. Barnes is assigned to the case. The Debtor estimated assets in the range of $o to $50,000 and $100,001 to $500,000 in debt. David R Herzog, Esq. at Herzog & Schwartz, P.C. serves as the Debtor's counsel. Holy Trinity is an Illinois religious corporation which for more than 100 years has operated a Greek Orthodox Church currently located at 6041 W. Diversey Ave., Chicago, Illinois, where it conducts its religious services and provides parish activities. The Chapter 11 case was filed because of a pending state foreclosure proceeding filed by MB Financial Bank, NA ("MB") against the Debtor with respect to the Chicago Property. In 2004, Holy Trinity purchased property at 1085 N. Lake Cook Rd., Deerfield, Illinois (the "Deerfield Property") for the purpose of relocating its parochial school known as the Socrates Greek-American Elementary School, which was founded in 1908, to the Deerfield Property. SNYDER VIRGINIA: Case Summary & 12 Unsecured Creditors ------------------------------------------------------ Debtor: Snyder Virginia Properties, LLC 200 Lake Front Drive, Suite 103 Mineral, VA 23117 Case No.: 16-61364 Chapter 11 Petition Date: July 7, 2016 Court: United States Bankruptcy Court Western District of Virginia (Lynchburg) Judge: Hon. Rebecca B. Connelly Debtor's Counsel: Edward Gonzalez, Esq. LAW OFFICE OF EDWARD GONZALEZ, PC 2405 I Street, N.W., Suite 1-A Washington, DC 20037 Tel: 202-822-4970 E-mail: eg@money-law.com Estimated Assets: $0 to $50,000 Estimated Liabilities: $10 million to $50 million The petition was signed by Jeff Snyder, manager. A list of the Debtor's 12 largest unsecured creditors is available for free at http://bankrupt.com/misc/vawb16-61384.pdf SPECIAL EDUCATION: Proposes Chapter 11 Liquidating Plan ------------------------------------------------------- Special Education Solutions, Inc. on July 19 filed with the U.S. Bankruptcy Court for the Western District of Arkansas a Chapter 11 plan, which proposes to pay creditors through the liquidation of its assets. Under the liquidating plan, general unsecured claims in Class 2 will be paid pro rata from the proceeds of the liquidation of Special Education's estate. Class 2 general unsecured claims will not bear interest. It is anticipated that the total amount of these claims is approximately $770,500, according to the disclosure statement detailing the plan. A copy of the plan outline is available for free at https://is.gd/Mlzr8z Special Education is represented by: Stanley Bond, Esq. Bond Law Office P.O. Box 1893 Fayetteville, AR 72702 Phone: 479-444-0255 Email: attybond@me.com About Special Education Solutions Special Education Solutions, Inc. sought protection under Chapter 11 of the Bankruptcy Code (Bankr. W.D. Ark. Case No. 15-72411) on September 23, 2015. SPORTS AUTHORITY: Creditors Seek to Convert Case to Ch. 7 --------------------------------------------------------- Lillian Rizzo, writing for The Wall Street Journal Pro Bankruptcy, reported that that Sports Authority Holdings Inc.'s vendors and landlords are looking to pull the plug on the retailer's bankruptcy case. According to the report, the retailer's unsecured creditors filed court papers on June 22 calling for the lights to be shut off permanently, saying Sports Authority faces mounting administrative claims on which it will never be able to get a grip. "The debtors are hopelessly administratively insolvent and will never, ever be able to propose a confirmable plan," the report said, citing the unsecured creditors said in court papers. The creditors are calling for the bankruptcy case to be converted into a chapter 7 proceeding, in which a trustee would be appointed to oversee the wind-down of the retail chain, the report related. Court papers show Sports Authority holds at least $50 million in unpaid administrative claims, as well as unpaid trade claims, the report further related. In addition, court papers show there is an alleged $71 million claim from term loan lenders, the report said. Other than the claims, there is little left to Sports Authority as the retailer has sold its assets to a trio of liquidators, which have been running going-out-of-business sales at its more than 450 locations since late May and its intellectual property, which includes its brand name, was sold to competitor Dick's Sporting Goods Inc., the report added. The retailer's real estate was also sold, with Dick's buying more than 30 locations, the report noted. Still remaining to be sold is Sports Authority's contract that holds the naming rights to the NFL's Denver Broncos' Mile High Stadium, the Hilco Streambank is in charge of the process, and offers are due by July 25, the report further noted. About Sports Authority Holdings Sports Authority Holdings, et al., are sporting goods retailers with roots dating back to 1928. The Debtors currently operate 464 stores and five distribution centers across 40 U.S. states and Puerto Rico. The Debtors offer a broad selection of goods from a wide array of household and specialty brands, including Adidas, Asics, Brooks, Columbia, FitBit, Hanesbrands, Icon Health and Fitness, Nike, The North Face, and Under Armour, in addition to their own private label brands. The Debtors employ 13,000 people. Sports Authority and six of its affiliates filed Chapter 11 bankruptcy petitions (Bankr. D. Del. Case Nos. 16-10527 to 16-10533) on March 2, 2016. The petitions were signed by Michael E. Foss as chairman & chief executive officer. The Debtors have engaged Gibson, Dunn & Crutcher LLP as general counsel, Young Conaway Stargatt & Taylor, LLP as co-counsel, Rothschild Inc. as investment banker, FTI Consulting, Inc., as financial advisor and Kurtzman Carson Consultants LLC as notice, claims, solicitation, balloting and tabulation agent. Andrew Vara, Acting U.S. trustee for Region 3, appointed seven creditors of Sports Authority Holdings Inc. to serve on the official committee of unsecured creditors. Lawyers at Pachulski Stang Ziehl & Jones LLP represent the Official Committee of Unsecured Creditors. SSNN-5532-34: Antheus Buying Chicago Property for $1.35M -------------------------------------------------------- On July 28, 2016 at 10:00 a.m., Gregory K. Stern, attorney for SSNN-5532-34 S. Kimbark, LLC, will ask Judge S. Hollis of the U.S. Bankruptcy Court for the District of Illinois, Eastern Division, to authorize the Debtors' sale of fee simple ownership interest in the real property commonly known as 5532-5534 South Kimbark, Chicago, Illinois, to Antheus Acquisitions, LLC, for $1,350,000. The Debtors are engaged in investing in commercial residential real estate in the greater Chicagoland area and leasing the premises to consumer tenants pursuant to written and oral real estate leases. The secured claims against the Real Property are as follows: a. As of the Petition Date, the amount due to Chase Bank, NA, which holds a first priority mortgage lien in and against the Property, was approximately $1,159,064. b. As of the Petition Date, the amount due to Chicago Title Insurance Co. ("CTIC") as assignee and successor in interest to Ridgestone Bank, which holds a second priority mortgage lien in and against the Property, was approximately $939,260. c. There are unpaid real property taxes owed to the Cook County Treasurer relating to the Property of at least $32,634. On July 8, 2016, the Debtors received an offer to purchase the Property from Antheus Acquisitions, without any financing contingencies, which requires, inter alia, an earnest money deposit of $50,000. The Debtors submitted the following sales procedures as appropriate to be used in the transaction: 1. Through the date of the closing, the Kimbark Debtor will continue to collect all rents and pay all expenses, including ad equate protection payments, with a pro ration through the date of Closing of all monthly rents and expenses. 2. Immediately after entry of the order approving the sale of the Property by the Court, the Kimbark Debtor will be authorized to close the sale of the Real Property with the Antheus Acquisitions for the sum of $1,350,000. 3. From the proceeds of the sale of the Property, the Debtors will pay (1) the real estate taxes to the Cook County Treasurer, transfer taxes, titles, the cost of survey, normal and customary closing costs and pro rations, including but not limited to attorney fees not to exceed $3,000, and (2) the mortgage liens of Chase Bank and CTIC against the Real Property. About SSNN-5532-34 S. Kimbark SSNN-5532-34 S. Kimbark, LLC and SSNN-Residential, LLC sought protection under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Ill. Case No. 16-04994) on February 17, 2016. The petition was signed by Sunil K. Srivastava, managing member. The case is assigned to Judge Pamela S. Hollis. At the time of the filing, the Debtor estimated its assets and liabilities at $1 million to $10 million. SSNN-BONNIE LANE: Confirmation, Disclosures Hearing on Sept. 7 -------------------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of Illinois is set to hold a hearing on September 7, at 10:00 a.m. to consider approval of the disclosure statement and the Chapter 11 plan of reorganization proposed by SSNN-Bonnie Lane LLC. The hearing will take place at Courtroom 615, 219 South Dearborn Street, Chicago, Illinois. Objections must be filed on or before August 24, which is also the deadline for voting creditors to file their ballots. SSNN-Bonnie is represented by: Gregory K. Stern, Esq. Gregory K. Stern, P.C. 53 West Jackson Boulevard, Suite 1442 Chicago, Illinois 60604 Phone: (312) 427-1558 Email: gstern1@flash.net About SSNN-Bonnie Lane LLC SSNN-Bonnie Lane LLC sought protection under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Ill. Case No. 15-17056) on May 13, 2015. STEINWAY MUSICAL: Moody's Revises Outlook to Neg & Affirms B2 CFR ----------------------------------------------------------------- Moody's Investors Service changes Steinway Musical Instrument's rating outlook to negative from stable due to Steinway's weak credit metrics and the risk that metrics will remain soft for an extended period. All ratings were affirmed, including the B2 Corporate Family Rating (CFR). "Leverage, measured as Debt/EBITDA, is high at over 7 times," said Kevin Cassidy, Senior Credit Officer at Moody's Investors Service. Unless the company's operating performance improves, there is a risk that leverage will remain above 6 times when the company attempts to refinance its ABL revolving credit facility and its $305 million term loan. The ABL expires in May 2018 and the term loan matures in May 2019. Ratings Affirmed: Corporate Family Rating at B2; Probability of Default Rating at B2-PD; $305 million first lien senior secured term loan due 2019 at B2 (LGD 4, 52%) RATING RATIONALE: Steinway's B2 Corporate Family Rating reflects its small size in terms of revenue, narrow product focus, high leverage -- debt/EBITDA is around 7 times -- and the potential inherent risks associated with being owned by a hedge fund. These risks, which are not expected in the near term, include possible actions such as dividend payments or other shareholder returns. The rating also reflects the risk that covenant cushion will diminish as the required levels step down. The rating is supported by Steinway's strong brand recognition and high product quality, geographic diversification and breadth of product offering across the musical instruments it supplies. The negative outlook reflects the uncertainty that debt/EBITDA will remain high for an extended period and the risk that cushion under the leverage covenant will diminish as the required levels step down. The rating is unlikely to be upgraded in the near to medium term given the negative outlook. Over the longer term, for an upgrade to be considered debt/EBITDA would need to approach 4 times and revenue would need to meaningfully increase. Ratings could be downgraded if debt/EBITDA was sustained above 7 times for any reason or if liquidity, including covenant cushion, meaningfully deteriorated. STEPHCRIS OF MISSOURI: Taps Danna McKitrick as Legal Counsel ------------------------------------------------------------ StephChris of Missouri, LLC seeks approval from the U.S. Bankruptcy Court for the Eastern District of Missouri to hire Danna McKitrick P.C. as its legal counsel. The firm will provide these services in connection with the Debtor's Chapter 11 case: (a) give legal advice with respect to its rights, powers and duties; (b) prepare legal papers; (c) represent the Debtor in negotiations related to its operations under Chapter 11 and the formulation of its plan of reorganization; (d) advise the Debtor regarding the negotiation of contracts and disposition of assets; and (e) represent the Debtor at the meeting of creditors and in any adversary proceedings. The firm's professionals and their hourly rates are: Shareholders $195 - $375 Associate Attorneys $140 - $225 Paralegals $90 - $130 A. Thomas DeWoskin, Esq., the attorney designated to represent the Debtor, will be paid $355 per hour. In a court filing, Mr. DeWoskin disclosed that the firm is a "disinterested person" as defined in section 101(14) of the Bankruptcy Code. The firm can be reached through: Thomas A. DeWoskin, Esq. Danna McKitrick P.C. 7701 Forsyth, Suite 800 St. Louis, MO 63105 Tel: (314) 726-1000 Fax: (314) 725-6592 Email: tdewoskin@dmfirm.com About StephChris of Missouri, LLC. StephChris of Missouri, LLC -- a retail Dairy Queen operator -- filed a chapter 11 petition (Bankr. E.D. Mo. Case No. 16-45026) on July 15, 2016. The petition was signed by Brian D. Brown, managing member. The case is assigned to Judge Kathy A. Surratt-States. The Debtor estimated total assets and total debts at more than $1 million at the time of the filing. STERLING MIDCO: Moody's Maintains B2 Corporate Family Rating ------------------------------------------------------------ Moody's Investors Service said that Sterling Midco Holdings, Inc.'s (d.b.a. Sterling Talent Solutions or "Sterling") proposed $10 million upsizing to $60 million from the recently announced $50 million add-on to its $440 million first lien term loan due 2022 ($437.2 million outstanding as of March 31, 2016) is a moderate credit negative, but it does not impact the company's ratings including its B2 Corporate Family Rating (CFR) or negative rating outlook. Moody's views the add-on transaction including the $10 million upsizing as a moderate credit negative because it indicates Sterling's willingness to aggressively add fixed term debt that will slow its de-leveraging progress in favor of acquisitions and one-time spending. Terming out the revolver and adding cash to the balance sheet enhances the company's liquidity near term, but Sterling will likely continue to utilize revolver draws and cash for acquisitions and integration spending. Moody's maintains the following ratings on Sterling Midco Holdings, Inc.: -- Corporate Family Rating, unchanged at B2 -- Probability of Default Rating, unchanged at B2-PD -- $70 million (including $10 million upsized amount) senior secured first lien revolving credit facility due 2020, unchanged at B1 (LGD3) -- $500 million (including $60 million add-on) senior secured first lien term loan due 2022, unchanged at B1 (LGD3) -- $140 million senior secured second lien term loan due 2023, unchanged at Caa1 (LGD6) -- Outlook, unchanged at Negative Sterling Midco Holdings, Inc., through its operating subsidiary Sterling Infosystems, Inc., provides pre- and post-employment verification services including criminal background checks, credential verification and employee drug testing. Sterling is majority-owned by affiliates of private equity sponsor Broad Street Principal Investments (a subsidiary of Goldman Sachs). Factoring in the full year results from recent acquisitions, the company generated approximately $438 million of operating revenues during the last twelve months ended March 31, 2016. STONE PANELS: Case Summary & 20 Largest Unsecured Creditors ----------------------------------------------------------- Debtor affiliates filing separate Chapter 11 bankruptcy petitions: Debtor Case No. ------ -------- Stone Panels, Inc. 16-32856 100 South Royal Lane Coppell, TX 75019 Stone Panels Holding Corporation 16-32859 120 S. Central Ave., Suite 600 Saint Louis, MO 63105 Type of Business: Stone Panels, Inc. manufactures natural stone composite panels for exterior, interior, renovation, elevator, and specialty applications in the United States, France, Europe, and internationally. Chapter 11 Petition Date: July 21, 2016 Court: United States Bankruptcy Court Northern District of Texas (Dallas) Judge: Hon. Barbara J. Houser Debtors' Counsel: Eric J. Taube, Esq. WALLER LANSDEN DORTCH & DAVIS LLP 100 Congress Ave., 18th Floor Austin, TX 78701 Tel: (512) 685-6400 Fax: (512) 685-6417 E-mail: eric.taube@wallerlaw.com Estimated Estimated Assets Liabilities --------- ----------- Stone Panels, Inc. $10M-$50M $10M-$50M Stone Panels Holding $0-$50,000 $10M-$50M The petition was signed by Tim Friedel, president and CEO. A. List of Stone Panels, Inc.'s 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Prime Industrial Recruiters $951,947 dba Elite Workforce Management 4527 E 31st Street Axiom Materials, Inc. $537,625 2320 Pullman Street Santa Ana, CA 92705 Thompson Street $375,833 Capital Manager, LLC 120 S Central Ave, Suite 600 St. Louis, MO 63105 H.B. Fuller Company $329,455 1200 Willow Lake Boulevard St. Paul, MN 55110 IMAP Global Logistics $273,720 1063 Texan TRL Suite 200 Grapevine, TX 76051 Plascore $173,519 Miller Druck Specialty $161,366 Contracting, Inc. Cross Country $131,400 Freight Services, Inc. DJS International Services $98,694 Ascend Custom Extrusions, LLC $84,770 Indiana Limestone Co $80,263 Fivepayne LLC $69,574 Rocharel Rochas, LDA $67,667 IGM - International $60,548 Granite & Marble Ontrack Staffing $58,724 N.T. Diamonds Tools LLC $48,091 MLRP 100 S Royal LP $46,318 Taos Staffing Corporation $44,002 Bryan Cave LLP $43,361 Thermafoam Operating, LLC $42,744 B. List of Stone Panels Holding's Two Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ The Privatebank and Long Term Loan $9,209,631 Trust Co 1401 South Brentwood Boulevard St. Louis, MO 63144 Brookside Mezzanine Services $5,126,757 Fund III, LP 201 Tresser Boulevard, Suite 330 Stamford, CT 06901 STONEGATE MORTGAGE: S&P Affirms Then Withdraws 'B' ICR ------------------------------------------------------ S&P Global Ratings said it affirmed and subsequently withdrew its 'B' long-term issuer credit rating on Stonegate Mortgage Corp. S&P withdrew the rating at the request of the company. At the time of withdrawal, the outlook was negative. STRONGHOLD ASSET: Taps Louis J. Esbin as Legal Counsel ------------------------------------------------------ Stronghold Asset Management Corp. seeks approval from the U.S. Bankruptcy Court for the Central District of California to hire the Law Offices of Louis J. Esbin as its legal counsel. The firm will provide these services in connection with the Debtor's Chapter 11 case: (a) advise the Debtor with respect to its powers and duties; (b) appear at all meetings required under the Guidelines of the Office of the U.S. Trustee; (c) prepare legal papers and negotiate on behalf of the Debtor; (d) advise the Debtor about its rights and duties in connection with the assumption or rejection of executory contracts and leases; and (e) assist the Debtor in any proceedings. Louis Esbin, Esq., a principal of the firm, will be paid $500 per hour while the firm's paralegal will receive $150 per hour. In a court filing, Mr. Esbin disclosed that his firm does not represent any interest adverse to the Debtor's estate. The firm can be reached through: Louis J. Esbin, Esq. Law Offices of Louis J. Esbin 25129 The Old Road, Suite 114 Stevenson Ranch, CA 91381-2273 Phone: 661-254-5050 Fax: 661-254-5252 Email: Esbinlaw@sbcglobal.net About Stronghold Asset Stronghold Asset Management Corp. sought protection under Chapter 11 of the Bankruptcy Code (Bankr. C. D. Calif. Case No. 16-11961) on July 6, 2016. The petition was signed by Edward Akselrod, chief executive officer. The case is assigned to Judge Maureen Tighe. At the time of the filing, the Debtor estimated its assets and debts at $1 million to $10 million. SUTTON 58 OWNER: Hires CohnReznick as Accountants ------------------------------------------------- Debtor, Sutton 58 Owner LLC, seeks authority from the U.S. Bankruptcy Court for the Southern District of New York to employ CohnReznick LLP as general accountants to the Debtor, effective as of April 6, 2016. Sutton 58 Owner requires CohnReznick to: a. assist the Debtor in the preparation of short and long-term projections (balance sheet, profit and loss, and cashflows); b. assist the Debtor in the preparation of cash flow forecasts; c. assist the Debtor in the preparation of financial-related disclosures required by the Bankruptcy Court, including Debtor's Schedules of Assets and Liabilities, Statements of Financial Affairs, monthly operating reports, etc.; d. assist the Debtor in the preparation of financial statements including tax returns, forms and audit reports; e. assist the Debtor to the extent necessary to formulate a disclosure statement and plan of reorganization; f. assist the Debtor in daily administrative and operational duties; and g. render such other general business consulting or other such assistance as the Debtor or its counsel may deem necessary. CohnReznick will be paid at these hourly rates: Partners/Senior Partner $610-$815 Manager/Senior Manager/Director $450-$640 Other Professional Staff $300-$440 Paraprofessional $195 CohnReznick will also be reimbursed for reasonable out-of-pocket expenses incurred. CohnReznick was paid a retainer in the sum of $35,000.00 prior to the Petition Date. The Retainer was paid to CohnReznick by non-debtor BH Sutton Owner LLC to act as accountants to Sutton 58 Owner LLC in this case. BH Sutton Owner LLC has advised Sutton 58 Owner LLC that it will not be seeking reimbursement of the Retainer and will not be filing a proof of claim against Sutton 58 Owner LLC's estate for the Retainer. Clifford Zucker, partner of CohnReznick LLP, assured the Court that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtors and their estates. CohnReznick can be reached at: Clifford Zucker COHNREZNICK LLP 1301 Avenue of the Americas New York, NY 10019 Tel: (212) 297-0400 About BH Sutton Mezz LLC and Sutton 58 Owner LLC New York City-based BH Sutton Mezz LLC filed for Chapter 11 protection (Bankr. S.D.N.Y. Case No. 16-10455) on Feb. 26, 2016. The petition was signed by Herman Carlinsky, president. The Hon. Sean H. Lane presides over the case. Joseph S. Maniscalco, Esq., at Lamonica Herbst & Maniscalco, LLP, represents BH Sutton in its restructuring effort. The Debtor estimated assets at $100 million to $500 million and debts at $10 million to $50 million. Sutton 58 Owner LLC filed a separate Chapter 11 bankruptcy petition (Bankr. S.D.N.Y. Case No. 16-10834) on April 6, 2016. Sutton Owner estimated assets at $100 million to $500 million and debts at $100 million to $500 million. Sutton Owner's business consists of the ownership and operation of these real properties: (a) 428, 430 and 432 East 58th Street, New York, New York, 10022, including all air rights and inclusionary air rights related thereto; and (b) the cooperative apartments identified as 1R, 2D and 2N located at 504 Merrick Road, Lynbrook, New York 11583. Sutton Owner seeks to retain Joseph S. Maniscalco, Esq., and Jordan C. Pilevsky, Esq., at Lamonica Herbst & Maniscalco, LLP, as its counsel. Both cases are jointly administered. TALL CITY WELL: Allowed to Use Cash Collateral Up to Sept. 14 ------------------------------------------------------------- Judge Ronald B. King of the U.S. Bankruptcy Court for the Western District of Texas authorized Tall City Well Service, LP, to use cash collateral on an interim basis, until September 14, 2016. The approved budget provides for total monthly administrative costs in the amount of $262,000. The administrative costs consist of payroll, insurance, rent and professional fees, among others. Judge King granted secured creditors Wells Fargo Bank, N.A. and Wells Fargo Equipment Finance replacement liens in and on all property of the Debtor and its bankruptcy estate. He directed the Debtor to make monthly adequate protection payments of $10,000 to Wells Fargo Bank and $14,000 to Wells Fargo Equipment Finance on the 21st day of every month. A hearing to further consider the Debtor's use of cash collateral is scheduled on September 14, 2016 at 9:30 a.m. A full-text copy of the Order, dated July 21, 2016, is available at https://is.gd/bxACKu About Tall City Well Service, LP. Tall City Well Service, LP, filed a chapter 11 petition (Bankr. W.D. Tex. Case No. 16-70079) on May 17, 2016, and is represented by Jesse Blanco Jr, Esq., in San Antonio, Tex. This chapter 11 proceeding is related to (but not jointly administered with) In re J G Solis, Inc., (Bankr. W.D. Tex. Case No. 16-70080) also filed on May 17, 2016. The petition was signed by Joel G. Solis, partner. The Debtor estimated its assets and liabilities at $0 to $50,000 at the time of the filing. TAR HEEL OIL: Cash Collateral Use Up to Sept. 8 Allowed ------------------------------------------------------- Judge Benjamin A. Kahn of the U.S. Bankruptcy Court for the Middle District of North Carolina authorized Tar Heel Oil II, Inc. and Gambill Oil, LLC. to use cash collateral on an interim basis, until September 8, 2016. The approved Budget provides for total expenses in the amount of $170,216 for the month of July, and $106,516 for each of the months of August and September. Tar Heel Oil is indebted to the following: (1) Great State Bank in the amount of $953,000; (2) BLT Investments, LLC in the amount of $1,870,000; and (3) Yadkin Valley Bank and Trust Company in the amount of $816,000. The Debtors are jointly indebted to Cary Oil Co., Inc. in the amount of $1,114,900, as of the Petition date. Gambill is indebted to: (1) Gambill Oil Company, Inc., et. al., in the amount of $684,000; and (2) Yadkin Valley Bank and Trust Company in the amount of $500,000. Judge Kahn acknowledged that the use of cash collateral is necessary to allow the Debtors to continue operations to provide funds to meet future operational needs including the costs of supplies and inventory, maintenance, taxes, wages and salaries and other normal expenses incurred as a result of the Chapter 11 filings. Judge Kahn directed the Tar Heel Oil to make monthly adequate protection payments to Great State Bank in the amount of $4,368; and BLT in the amount of $2,500. He directed the Debtors to make monthly adequate protection payments to Cary Oil in the amount of $7,258.93. Judge Kahn ordered Gambill to make monthly adequate protection payments to Yadkin Bank in the amount of $3,290. A further hearing on the Debtors' Cash Collateral Motion and the objections and responses to the Motion is scheduled on September 8, 2016 at 9:30 a.m. A full-text copy of the Order, dated July 21, 2016, is available at https://is.gd/v2sAGY A full-text copy of the Budget, dated July 21, 2016, is available at https://is.gd/4Tz8i1 About Tar Heel Oil II, Inc. Tar Heel Oil II, Inc. and Gambill Oil, LLC sought protection under Chapter 11 of the Bankruptcy Code (Bankr. M.D.N.C. Case Nos. 16-50216 and 16-50217) on March 4, 2016. The petitions were signed by Arthur H. Lankford, president. The Debtors are represented by Charles M. Ivey, III, Esq., at Ivey, McClellan, Gatton, & Siegmund, LLP. The case is assigned to Judge Benjamin A. Kahn. Tar Heel Oil estimated assets of $3.18 million and debts of $6.03 million. Gambill Oil estimated assets of $986,674 and debts of $3.28 million. TERRAFORM PRIVATE: S&P Affirms 'B-' CCR, Off Watch Negative ----------------------------------------------------------- S&P Global Ratings said that it affirmed its 'B-' corporate credit rating on TerraForm Private LLC. S&P also removed the ratings from CreditWatch, where they were placed with negative implications on May 25, 2016. The outlook is stable. The 'B' issue-level rating on the secured term loan, and '2' recovery rating are unchanged. The '2' recovery rating indicates S&P's expectation for substantial (70%-90%; upper half of the range) recovery in a default scenario. "The CreditWatch resolution stems from our understanding of the issuer's operations in the possible void of TerraForm Power's participation in the company," said S&P Global Ratings credit analyst Michael Ferguson. "We had previously developed a base case forecast on the assumption that assets would periodically be sold to TerraForm Power, which would provide the issuer with cash flow to retire debt and ultimately improve credit metrics. However, TerraForm Power's ongoing struggles related to governance and parent issues have called this assumption into question. Thus, we now rely on the ability of the preferred equity holders to maintain these ssets, which have performed in line with our expectations, or sell the assets outside of the arrangement with TerraForm Power; we expect either outcome would be preferable to relying on TerraForm Power to purchase the assets, as these assets continue to have significant value. However, the weakness of SunEdison still weighs on this rating, though we do not expect that TerraForm Private will be pulled into SunEdison's bankruptcy proceedings due to the presence of appropriate ring fencing. Per S&P's group ratings methodology, it generally do not lower the ratings of insulated subsidiaries, like TerraForm Private, below 'B-' unless S&P believes that the subsidiary would likely be drawn into an insolvency of the parent company. The outlook on TerraForm Private is stable, as its SACP of 'b' is above its corporate credit rating of 'B-'. THUNDERBOLT MANUFACTURING: Sedgwick Property to Be Sold for $2.5K ----------------------------------------------------------------- Carl B. Davis, the Chapter 11 trustee for Thunderbolt Manufacturing, Inc., asks the U.S. Bankruptcy Court for the District of Kansas to authorize the private treaty sale of the real property located at Lot 5, Block 10, Westlink Seventeen Addition, Wichita, Sedgwick County, Kansas, to Ryan Morrell for $2,500, subject to overbid. The sale will be conducted by the Trustee at his office at 2121 W. Maple, Wichita, Kansas, on or after July 28, 2016, unless objections or other offers are timely filed. All objections and any higher offers must be filed with the Clerk of the United States Bankruptcy Court on or before July 28, 2016. Any party-in-interest may bid more in increments of $1,000. Additional bids must be accompanied by a cash deposit of 20% of the bid price as earnest money, to be applied to the purchase price or returned depending on whether the additional bidder is the ultimate purchaser of the Real Property. If additional bids are received, then the said bidders and Mr. Morrell will be allowed to bid by telephone at the time of sale until a high bid is reached. The proceeds from the sale are expected to be distributed according to these priorities: a. Cost of Sale: Trustee's Fee on all funds disbursed at closing by the trustee or the closing agent and including the cost of sale: (i) $40 for photocopying, $30 for postage, $75 for certification of copies, and $50 for Register of Deeds. b. Expense for filing of Motion in the sum of $176 paid from bankruptcy estate. c. The remaining funds (after payment of the balance of the Costs of Sale and Trustee's fees) will be distributed to creditors whose claims are allowed at a later date by the Court. If objections are timely filed, a hearing will be held on Aug. 11, 2016, at 10:30 a.m. Wichita, Kansas-based Thunderbolt Manufacturing Inc sought Chapter 11 protection (Bankr. D. Kan. Case No. 14-bk-11954) on Aug. 21, 2014. The Debtor was represented by Elizabeth A. Carson, Esq., at Bruce Bruce & Lehman LLC. TRIDENT BRANDS: Has $648-K Net Loss in Qtr. Ended May 31 -------------------------------------------------------- Trident Brands Incorporated filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $648,063 on $204,831 of revenues for the three months ended May 31, 2016, compared to a net loss of $792,857 on $670 of revenues for the same period in 2015. For the six months ended May 31, 2016, the Company listed a net loss of $1.43 million on $224,026 of revenues, compared to a net loss of $1.18 million on $1,640 of revenues for the same period last year. As of May 31, 2016, the Company had $3.09 million in total assets, $4.23 million in total liabilities and a total stockholders' deficit of $1.14 million. The Company has had minimal revenues during the period from November 5, 2007 (date of inception) to May 31, 2016 and has a working capital deficit as of May 31, 2016. These conditions raise substantial doubt about the Company's ability to continue as a going concern. The Company is currently in the early growth stage at product introduction phase and expenses are increasing. The company has secured financing to cover these expenses. The current cash of $18,600, is insufficient to cover the expenses the Company will incur during the next twelve months. A full-text copy of the Form 10-Q is available for free at: https://is.gd/sQXotC Trident Brands Incorporated (f/k/a Sandfield Ventures Corp.) was initially formed to engage in the acquisition, exploration and development of natural resource properties, but has since transitioned and is now focused on branded consumer products and food ingredients. The Company maintains a compelling portfolio of branded consumer products including nutritional products and supplements under the Everlast(R) and Brain Armor(R) brands, and functional food ingredients under the Oceans Omega brand. These brands are focused on the fast growing supplements and nutritional product and heart and brain health categories, supported by an established contract manufacturing, supply chain and research and development infrastructure, and a solid and proactive management team, board of directors and advisors with many years of experience in related categories. UNITED MOBILE: Wants Authorization to Use Cash Collateral --------------------------------------------------------- United Mobile Solutions, LLC asks the U.S. Bankruptcy Court for the Northern District of Georgia for authorization to use cash collateral. The Debtor relates that T-Mobile USA, Inc. asserts a first priority lien upon and security interest in the Debtor's assets, including all accounts and other assets, described in the UCC Financing Statement number 065-2011-000982. The Debtor's proposed monthly Budget provides for expenses in the amount of $166,727. The expenses include payroll, rent and utilities, and insurance, among others. The Debtor says that in order to effectively organize, it must have access to cash to pay the operating expenses of its business. It further says that if it does not have the authority to use its available cash to pay operating expenses, the going concern value of the business will be significantly harmed and the estate and creditors will be negatively affected. A full-text copy of the Debtor's Motion, dated July 20, 2016, is available at https://is.gd/PADLw6 About United Mobile Solutions, LLC. United Mobile Solutions, LLC. filed a chapter 11 petition (Bankr. N.D. Ga. Case No. 16-62537) on July 20, 2016. The Debtor is a carrier master dealer that operates and manages approximately 20 retail cellular phone stores. The Debtor's corporate offices are located in Norcross, Georgia. The Debtor is represented by Cameron M. McCord, Esq., at Jones & Walden, LLC. The Debtor estimated its assets at less than $50,000 and its liabilities at more than $1 million at the time of the filing. VANTAGE SPECIALTY: S&P Affirms 'B-' CCR, Outlook Remains Stable --------------------------------------------------------------- S&P Global Ratings affirmed its 'B-' corporate credit ratings on Vantage Specialty Chemicals Inc. The outlook remains stable. At the same time, S&P is affirming its 'B-' issue-level rating on the company's first-lien term loan (including the proposed $85 million add-on) and on the company's revolving credit facility and S&P is revising the recovery rating to '4' from '3'. The '4' recovery rating indicates S&P's expectation of average (higher end of the 30% to 50% range) recovery in the event of a payment default. As part of this transaction, S&P expects that the company will extend the maturities on the credit facility and the first-lien term loan to 2019 and 2021, respectively. S&P is also assigning its 'CCC' issue-level and '6' recovery ratings to Vantage's proposed $40 million secured second-lien term loan due 2022. The '6' recovery rating indicates S&P's expectation of negligible recovery (0% to 10%) in the event of payment default. The company will be issuing an $85 million add-on to the company's existing secured first-lien term loan and a new $40 million secured second-lien term loan. The company will also seek to extend the maturity dates on its existing revolving credit facility and on its first-lien term loan. S&P based all ratings on preliminary terms and conditions. "Our ratings reflect our assessment of Vantage's financial risk as highly leveraged and its business risk profile as weak," said S&P Global Ratings credit analyst Allison Schroeder. The stable rating outlook on Vantage reflects S&P's expectations of reasonably predictable EBITDA and cash flow generation over the next year. Despite S&P's assessment of the company's financial profile as highly leveraged, S&P views Vantage's annual cash-based debt-servicing obligations as being manageable relative to its cash flow generation because a large portion of the company's debt is in the form of PIK preferred (at a parent holding company) equity on which S&P anticipates no cash interest outflow. S&P expects the company's EBITDA and cash flow generation to improve as the company continues to integrate acquisitions in relatively stable end markets and based on our overall outlook for modest economic growth and S&P's expectation that the company's strengths in the domestic market and its presence in Latin America will contribute to better overall volumes. S&P assumes that management and the company's owners will support credit quality and, therefore, S&P has not factored into its analysis any distributions to shareholders or significant debt-funded capital spending. S&P expects that the company will maintain leverage credit measures within S&P's range of expectations, with debt to EBITDA at or above 7x, pro forma for acquisitions, over the next year. "We could lower the ratings if Vantage's organic revenue growth stalled or turned negative, or if its margins declined to single-digit levels. In addition, we could lower ratings if liquidity weakened to less than adequate or if cash flow turns negative. At the current rating, there is no room for additional debt funded acquisitions, which could push debt to EBITDA above 9x (pro forma for acquisitions and including PIK preferred equity) over the next twelve months. We could also lower ratings should the company decide to pursue any more large debt-funded acquisitions or if our assessment of management's financial policy were to deteriorate so that we no longer viewed management as supportive of credit quality," S&P said. "Given current leverage levels, we view an upgrade as unlikely over the next year. We could, however, consider an upgrade if the company reduces leverage using cash flows or equity to pay down debt--improving the FFO to total adjusted debt ratio to above 12%--and we believe that the owners and management would be committed to maintaining leverage at these improved levels. In addition, we could take a positive rating action over the next year if debt to EBITDA falls to levels at or below 6x (including PIK preferred equity) for what we expect to be a sustainable period," S&P noted. VERSO PAPER: S&P Assigns 'B+' CCR & Rates $220MM Loan 'BB' ---------------------------------------------------------- S&P Global Ratings said it assigned its 'B+' corporate credit rating to Verso Paper Holdings LLC upon its emergence from bankruptcy. The outlook is stable. At the same time, S&P assigned its 'BB' issue-level rating to the company's $220 million secured term loan due 2022. S&P's recovery rating on the term loan is '1', which raises the issue-level rating two notches from the corporate credit rating and indicates our expectation for very high (90% to 100%) recovery for creditors in the event of default. S&P estimates adjusted debt between $750 million and $775 million at the time of emergence, which includes the company's tax-affected pension and other postretirement benefit obligations. Memphis-based Verso is the largest producer of coated freesheet paper in North America and also produces specialty papers and pulp. Coated freesheet paper is used in commercial printing, magazines, catalogs, books, advertising inserts, and other products. "Our stable outlook reflects our projection that after the material reduction in debt related to the company's bankruptcy restructuring, debt to EBITDA will improve to the 3x to 4x range on a run rate basis," said S&P Global Ratings credit analyst Christopher Andrews. S&P could take a negative rating action over the next 12 months if paper demand and pricing materially underperform S&P's forecast and the company does not achieve the run-rate EBITDA levels S&P expects it to, such that debt to EBITDA is sustained over 5x. Alternatively, a downgrade could also be the result of declining profitability that S&P views as being non-temporary, such that S&P reassess its view of Verso's business risk profile to vulnerable from weak. Although S&P views it as unlikely over the next 12 months, it could take a positive rating action if the company is able to drive stronger operating efficiency, resulting in EBITDA growth that is higher relative to S&P's forecast, or that Verso is able to reduce its revolving debt balance more rapidly than S&P expects, such that S&P believes leverage will be maintained below 3x. VIDEO DISPLAY: Incurs $.39-Mil. Net Loss in Qtr. Ended May 31 ------------------------------------------------------------- Video Display Corporation filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $0.39 million on $1.86 million of net sales for the three months ended May 31, 2016, compared to a net loss of $1.57 million on $2.36 of net sales for the same period in 2015. As of May 31, 2016, Video Display Corporation had $12.08 million in total assets, $4.01 million in total liabilities and a total stockholders' equity of $8.07 million. The Company has sustained losses for each of the last two years and has seen a decline in both its working capital and liquid assets during this time. These losses were a combination of low revenues at all divisions without a commensurate reduction of expenses. During the year ended February 29, 2016, the Company operated using cash from operations of $0.8 million, which was primarily generated from a $0.7 million tax refund that was non-recurring in nature. During the quarter ended May 31, 2016, operational cash flows used $0.5 million. Management has implemented a plan to improve the liquidity of the Company. The Company has been implementing a plan to increase revenues at all the divisions, each structured to the particular division with an increase in the current backlog and growth in revenues. The Company has a plan to reduce expenses at the divisions, as well as at the corporate location with the expectation that expenses will be decreased by more than $1.7 million per year. Management continues to explore options to monetize certain long-term assets of the business, including current negotiations to sell its Lexel Imaging subsidiary, presented as discontinued operations, where a final sale is expected during fiscal year ending February 28, 2017. If additional and more permanent capital is required to fund the operations of the Company, no assurance can be given that the Company will be able to obtain the capital on terms favorable to the Company, if at all. The ability of the Company to continue as a going concern is dependent upon the success of management's plans to improve revenues, the operational effectiveness of continuing operations, to liquidate the subsidiary noted above, the procurement of suitable financing, or a combination of these. The uncertainty regarding the potential success of management's plan create substantial doubt about the ability of the Company to continue as a going concern. A full-text copy of the Form 10-Q is available for free at: https://is.gd/NPPGxg About Video Display Corporation Video Display Corporation and subsidiaries is a provider and manufacturer of video products, components, and systems for visual display and presentation of electronic information media in a variety of requirements and environments. The Company designs, engineers, manufactures, markets, distributes and installs technologically advanced display products and systems, from basic components to turnkey systems, for government, military, aerospace, medical, industrial, and commercial organizations. The Company markets its products worldwide primarily from facilities located in the United States. VILLAS DEL MAR: Banco Popular Wants to Prohibit Cash Use -------------------------------------------------------- Banco Popular De Puerto Rico asks the U.S. Bankruptcy Court for the District of Puerto Rico to prohibit Villas Del Mar Hau, Inc., from using Banco Popular's cash collateral. The Debtor entered into various loan agreements with Banco Popular, which are secured by, among other things, real estate collateral which operates as a resort called Parador Villas del Mar Hau. The Debtor granted Banco Popular a lien over, among other things, all of its pre-petition and post-petition rents and revenue generated by the Real Estate Collateral. As of the Petition Date, Banco Popular is the holder of a valid, perfected, secured claim in the amount of $1,409,903.30. Banco Popular tells the Court that it has engaged in good faith efforts with the Debtor to attempt to reach an agreement pursuant to which Banco Popular may provide its consent for the use of its cash collateral and pave the way towards the potential confirmation of a consensual plan. It further tells the Court that the Debtor has failed to provide Banco Popular with the information that it had requested as part of these discussions and that the parties have not been able to reach an agreement. Banco Popular says that it informed the Debtor's counsel that it does not consent to the Debtor's continued use of cash collateral. Banco Popular further says that the Debtor has not requested an order authorizing the use of any cash collateral and that the Debtor has not requested or obtained Banco Popular's consent to use any of the cash collateral. A full-text copy of Banco Popular De Puerto Rico's Motion, dated July 20, 2016, is available at https://is.gd/RnGkYt Banco Popular De Puerto Rico is represented by: Luis C. Marini, Esq. Carolina Velaz-Rivero, Esq. O'NEILL & BORGES LLC 250 Muñoz Rivera Avenue, Suite 800 San Juan, PR 00918-1813 Telephone: (787) 764-8181 Email: luis.marini@oneillborges.com carolina.velaz@oneillborges.com About Villas Del Mar Hau, Inc. Villas Del Mar Hau, Inc. filed for Chapter 11 bankruptcy protection (Bankr. D.P.R. Case No.: 15-10146) on December 22, 2015. The petition was Myrna Hau Rodriguez, president/owner. The Debtor is represented by Victor Gratacos Diaz, Esq., at Gratacos Law Firm. The case is assigned to Judge Enrique S. Lamoutte Inclan. The Debtor disclosed total assets of $3.80 million and estimated total debts of $4.46 million at the time of the filing. WARNER MUSIC: Obtains Lender Consent to Amend Term Loan Agreement ----------------------------------------------------------------- As previously disclosed, on July 12, 2016, WMG Acquisition Corp., an indirect, wholly-owned subsidiary of Warner Music Group Corp., launched a process by which it sought lender consent to an amendment to the credit agreement, dated Nov. 1, 2012. The Company received lender consent to, and executed, the Senior Term Loan Credit Agreement Amendment on July 15, 2016. As approved, the Senior Term Loan Credit Agreement Amendment (among other changes) will conform certain baskets governing the ability to incur debt and liens to the equivalent provisions applicable to the Company's 5.625% Senior Secured Notes due 2022 and 6.750% Senior Notes due 2022. The changes to the baskets will become effective after (i) WMG Acquisition Corp. and its restricted subsidiaries have incurred indebtedness for borrowed money with a maturity date after the Maturity Date the gross proceeds of which (before deduction of original issue discount and other fees) equal at least $300 million and (ii) the Term Loan Borrower has prepaid Tranche B Term Loans (as defined in the Senior Term Loan Credit Agreement) in an amount at least equal to the lesser of (x) $300 million and (y) the net proceeds of such indebtedness. About Warner Music Group Based in New York, Warner Music Group Corp. (NYSE: WMG) -- http://www.wmg.com/-- was formed by a private equity consortium of investors on Nov. 21, 2003. The Company is the direct parent of WMG Holdings Corp., which is the direct parent of WMG Acquisition Corp. WMG Acquisition Corp. is one of the world's major music-based content companies and the successor to substantially all of the interests of the recorded music and music publishing businesses of Time Warner Inc. The Company classifies its business interests into two fundamental operations: Recorded Music and Music Publishing. The Company's Recorded Music business primarily consists of the discovery and development of artists and the related marketing, distribution and licensing of recorded music produced by such artists. The Company's Music Publishing operations include Warner/Chappell, its global Music Publishing company, headquartered in New York with operations in over 50 countries through various subsidiaries, affiliates and non-affiliated licensees. In May 2011, Warner Music Group Corp. and Access Industries, the U.S.-based industrial group, announced the execution of a definitive merger agreement under which Access Industries will acquire WMG in an all-cash transaction valued at $3.3 billion. The purchase includes WMG's entire recorded music and music publishing businesses. On July 20, 2011, the Company notified the New York Stock Exchange, Inc., of its intent to remove the Company's common stock from listing on the NYSE and requested that the NYSE file with the SEC an application on Form 25 to report the delisting of the Company's common stock from the NYSE. On July 21, 2011, in accordance with the Company's request, the NYSE filed the Form 25 with the SEC in order to provide notification of that delisting and to effect the deregistration of the Company's common stock under Section 12(b) of the Securities Exchange Act of 1934, as amended. On August 2, 2011, the Company filed a Form 15 with the SEC in order to provide notification of a suspension of its duty to file reports under Section 15(d) of the Exchange Act. The Company continues to file reports with the SEC pursuant to the Exchange Act in accordance with certain covenants contained in the instruments governing the Company's outstanding indebtedness. Warner Music reported a net loss attributable to the Company of $91 million on $2.96 billion of revenues for the fiscal year ended Sept. 30, 2015, compared to a net loss attributable to the Company of $308 million on $3.02 billion of revenues for the fiscal year ended Sept. 30, 2014. As of March 31, 2016, Warner Music had $5.48 billion in total assets, $5.25 billion in total liabilities and $234 million in total equity. * * * As reported by the TCR on Oct. 23, 2015, Standard & Poor's Ratings Services lowered its corporate credit rating on New York City-based Warner Music Group Corp. (WMG) to 'B' from 'B+'. "The downgrades reflect our expectations that WMG's adjusted leverage will remain elevated for the next two years -- above our 5x threshold for the 'B+' corporate credit rating," said Standard & Poor's credit analyst Naveen Sarma. WARNER MUSIC: To Launch Senior Secured Notes Offering ----------------------------------------------------- Warner Music Group Corp. announced that through its wholly owned subsidiary, WMG Acquisition Corp., it intends to commence a private offering of senior secured notes. The Notes will be offered in a private offering exempt from the registration requirements of the United States Securities Act of 1933, as amended. The Notes will be offered only to qualified institutional buyers pursuant to Rule 144A and to certain persons outside the United States pursuant to Regulation S, each under the Securities Act. The Company intends to use the proceeds of the Offering to repay a portion of the term loans under the Company's senior credit facilities. The Notes have not been registered under the Securities Act and may not be offered or sold within the United States absent registration or an applicable exemption from the registration requirements. About Warner Music Group Based in New York, Warner Music Group Corp. (NYSE: WMG) -- http://www.wmg.com/-- was formed by a private equity consortium of investors on Nov. 21, 2003. The Company is the direct parent of WMG Holdings Corp., which is the direct parent of WMG Acquisition Corp. WMG Acquisition Corp. is one of the world's major music-based content companies and the successor to substantially all of the interests of the recorded music and music publishing businesses of Time Warner Inc. The Company classifies its business interests into two fundamental operations: Recorded Music and Music Publishing. The Company's Recorded Music business primarily consists of the discovery and development of artists and the related marketing, distribution and licensing of recorded music produced by such artists. The Company's Music Publishing operations include Warner/Chappell, its global Music Publishing company, headquartered in New York with operations in over 50 countries through various subsidiaries, affiliates and non-affiliated licensees. In May 2011, Warner Music Group Corp. and Access Industries, the U.S.-based industrial group, announced the execution of a definitive merger agreement under which Access Industries will acquire WMG in an all-cash transaction valued at $3.3 billion. The purchase includes WMG's entire recorded music and music publishing businesses. On July 20, 2011, the Company notified the New York Stock Exchange, Inc., of its intent to remove the Company's common stock from listing on the NYSE and requested that the NYSE file with the SEC an application on Form 25 to report the delisting of the Company's common stock from the NYSE. On July 21, 2011, in accordance with the Company's request, the NYSE filed the Form 25 with the SEC in order to provide notification of that delisting and to effect the deregistration of the Company's common stock under Section 12(b) of the Securities Exchange Act of 1934, as amended. On August 2, 2011, the Company filed a Form 15 with the SEC in order to provide notification of a suspension of its duty to file reports under Section 15(d) of the Exchange Act. The Company continues to file reports with the SEC pursuant to the Exchange Act in accordance with certain covenants contained in the instruments governing the Company's outstanding indebtedness. Warner Music reported a net loss attributable to the Company of $91 million on $2.96 billion of revenues for the fiscal year ended Sept. 30, 2015, compared to a net loss attributable to the Company of $308 million on $3.02 billion of revenues for the fiscal year ended Sept. 30, 2014. As of March 31, 2016, Warner Music had $5.48 billion in total assets, $5.25 billion in total liabilities and $234 million in total equity. * * * As reported by the TCR on Oct. 23, 2015, Standard & Poor's Ratings Services lowered its corporate credit rating on New York City-based Warner Music Group Corp. (WMG) to 'B' from 'B+'. "The downgrades reflect our expectations that WMG's adjusted leverage will remain elevated for the next two years -- above our 5x threshold for the 'B+' corporate credit rating," said Standard & Poor's credit analyst Naveen Sarma. WELLS FARGO 2015-NXS2: DBRS Confirms B(sf) Rating on Class F Certs ------------------------------------------------------------------ DBRS Limited confirmed all classes of Commercial Mortgage Pass-Through Certificates, Series 2015-NXS2 (the Certificates) issued by Wells Fargo Commercial Mortgage Trust 2015-NXS2 as follows: -- Class A-1 at AAA (sf) -- Class A-2 at AAA (sf) -- Class A-3 at AAA (sf) -- Class A-4 at AAA (sf) -- Class A-5 at AAA (sf) -- Class A-SB at AAA (sf) -- Class A-S at AAA (sf) -- Class X-A at AAA (sf) -- Class X-E at AAA (sf) -- Class X-F at AAA (sf) -- Class X-G at AAA (sf) -- Class B at AA (low) (sf) -- Class C at A (low) (sf) -- Class PEX at A (low) (sf) -- Class D at BBB (low) (sf) -- Class E at BB (low) (sf) -- Class F at B (low) (sf) All trends are Stable. The Class A-S, Class B and Class C Certificates may be exchanged for the Class PEX Certificates (and vice versa). The rating confirmations reflect the overall stable performance of the transaction, which has experienced a collateral reduction of 0.5% since closing as the result of scheduled loan amortization. At issuance, the pool consisted of 63 fixed-rate loans secured by 77 commercial and multifamily properties. As of the June 2016 remittance, all of the original 63 loans remain in the pool with an aggregate outstanding principal balance of $910.1 million. There are 58 loans, representing 90.4% of the current pool balance, that are reporting YE2015 financials. These loans report a weighted-average (WA) debt service coverage ratio (DSCR) of 1.71 times (x) and a WA debt yield of 9.1%. At issuance, the DBRS WA DSCR and debt yield for the pool was 1.68x and 8.5%, respectively. DBRS believes reported cash flows are likely artificially depressed for some of the loans showing YE2015 metrics, as first-year reporting is often skewed compared with underwritten or historical figures, particularly when it comes to expenses. As such, DBRS expects the WA DSCR for the pool could improve with the 2016 reporting. DBRS maintains an investment-grade shadow rating on one loan in the pool, Patriots Park (Prospectus ID#1, 9.9% of the current pool balance). DBRS has today confirmed that the performance of this loan remains consistent with investment-grade loan characteristics. As of the June 2016 remittance, there is one loan in special servicing, representing 2.5% of the current pool balance and one loan on the servicer’s watchlist, representing 1.7% of the current pool balance. These two loans and another loan in the top 15 are detailed below. The 88 Hamilton Avenue loan (Prospectus ID#8, 2.53% of the current pool balance) is secured by a 154,533 square foot (sf) Class B industrial office and warehouse property in Stanford, Connecticut. The loan transferred to special servicing in January 2016 due to imminent monetary default as the servicer received notice that the borrower’s sole member and manager both filed for Chapter 11 bankruptcy protection. The servicer has noted that counsel has been engaged and efforts to protect the trust collateral through the bankruptcy are ongoing, with a court-ordered auction on June 20, 2016. The servicer advises that the trust submitted a credit bid to protect its interests and the loan will either be assumed with a full cure, paid off or the trust will retain the property through its credit bid. According to the March 2016 rent roll, the property was 100% occupied with an average rental rate of $14.95 per square foot (psf) as compared with the issuance occupancy rate of 92.4% and average rental rate of $14.77 psf. There is no tenant rollover risk within the next 12 months with the largest three tenants collectively representing 96.9% of the net rentable area (NRA), on leases scheduled to expire between May 2018 and October 2023. The loan reported a YE2015 DSCR of 1.52x, reflective of a net cash flow (NCF) growth of 20.3% when compared to the DBRS UW DSCR of 1.26x. According to the March 2016 appraisal value of $27.5 million (resulting loan-to-value ratio of 83.6%), the value has declined by $5.0 million from the issuance value of $32.5 million, as a result of a slightly higher cap rate assumed in the latest appraisal as compared to the issuance valuation. Market fundamentals appear to remain in line with characteristics in place at issuance and, as such, DBRS believes the increased cap rate is conservative. The loan was modelled with an increased probability of default to account for the elevated risk associated with the monetary default and borrower bankruptcy. The 100 West 57th Street loan (Prospectus ID#4, 4.9% of the current pool balance) is part of a $180 million whole loan evidenced by four pari passu notes secured by the leased fee interest in the 25,125 sf land parcel beneath the Carnegie House, a 21-storey mixed-use residential and retail cooperative building located in Midtown Manhattan, New York. The loan financed the sponsor’s acquisition of the collateral for $286.0 million, with approximately $124.1 million in equity contributed to close. At closing, a $605,510 holdback reserve was established to cover the cumulative difference between the ground rent and the debt service during the anticipated repayment date period, which has a five-year term ending in 2019. The servicer is reporting a YE2015 DSCR for the loan of 0.94x, but that coverage does not give credit to the reserve. The DBRS UW NCF figure implies coverage of 3.57x and is based on a look-through analysis of the building’s cash flow assuming no ground lease (for additional information, please see the DBRS rating report dated July 16, 2015). As the DBRS viewpoint remains unchanged since issuance, the DBRS UW NCF figure was modelled for this review. The 655 K Street loan (Prospectus ID#15, 1.7% of the current pool balance) is secured by a 13,396 sf retail property in Washington, D.C. The loan was added to the watchlist due to a low YE2015 DSCR of 1.01x, which has declined when compared with the DBRS UW DSCR of 1.17x. The low YE2015 DSCR is attributable to delayed delivery for two spaces under construction at issuance from late summer 2015 to early Q2 2016. As of December 2015, the physical occupancy rate of the property was 78.3%, compared with the leased rate of 100%. The property is leased to three tenants: CVS (78.3% of the NRA), Pie 360 (10.8% of the NRA) and Shouk (10.9% of the NRA). All three leases extend beyond the loan term, expiring between 2025 and 2030. The DBRS UW NCF figure gives credit to the signed leases for tenants not yet in occupancy, with an above-market vacancy factor of 10.0% applied. Market characteristics remain similar to those at issuance, as according to CoStar, comparable retail properties within a 0.5-mile radius of the property were averaging a vacancy rate of 6.4% and a triple net rental psf of $37.85 psf, as of July 2016. The servicer reports that, as of May 2016, Shouk has taken occupancy of its space and is open for business, with delivery of the Pie 360 space expected to take place in the near term. DBRS expects cash flows to stabilize over the next 12 months and will continue to monitor for developments. WHITE STAR: Moody's Hikes Corporate Family Rating to Caa1 --------------------------------------------------------- Moody's Investors Service (upgraded White Star Petroleum's (WSTR) Corporate Family Rating (CFR) to Caa1 from Caa2 and the Probability of Default Rating to Caa1-PD from Caa2-PD. Moody's affirmed WSTR's Caa2 senior secured second lien notes rating. The ratings outlook was changed to positive from stable. "The upgrade of WSTR's CFR reflects the company's considerable debt reduction, albeit through a series of distressed debt exchanges, and a largely equity-financed acquisition of Mississippi Lime and Woodford Shale assets that has more than doubled the production and reserve profile of the company. The combination of reduced leverage and improved drilling inventory has markedly improved the company's prospects," noted John Thieroff, Moody's VP-Senior Analyst. Ratings Upgraded: Issuer: White Star Petroleum, LLC -- Corporate Family Rating, Upgraded to Caa1 from Caa2 -- Probability of Default Rating, Upgraded to Caa1-PD from Caa2-PD Ratings Affirmed: -- Senior Secured Second Lien Notes, Affirmed at Caa2 (LGD5 from LGD4) Outlook Actions: -- Outlook, Changed to Positive from Stable RATINGS RATIONALE The Caa1 Corporate Family Rating (CFR) reflects WSTR's small scale, early-stage operations, largely undeveloped reserve base, concentration in the Central Northern Oklahoma Woodford (CNOW) play, and execution risk following a recent acquisition of assets and spin-off from the American Energy platform. As a result of WSTR's June 2016 acquisition, pro forma average daily production has more than doubled to 19,000 barrels of oil equivalent per day (boe/d). However, the company still ranks among the smallest of its E&P peers which, along with the relatively complex geological composition of the CNOW play, restrains the rating. The rating benefits from the company's low leverage and good interest coverage relative to its peers, aided by its recently completed debt restructuring. The rating is also supported by the management team's operational track record and the company's substantial drilling inventory which provides visible production and cash flow growth potential. The company's second lien notes are rated Caa2, reflecting the credit facility's priority claim over the second lien notes as per Moody's Loss Given Default (LGD) Methodology. WSTR also has a stub amount of senior unsecured notes (unrated) that remained outstanding following the company's exchange into the second lien notes in May 2015. Moody's believes that the Caa2 rating is more appropriate for the second lien notes than the rating suggested by the Moody's LGD Methodology. Moody's views WSTR's liquidity profile as adequate through mid-2017. At June 30, 2016, the company had ample availability under its $210 million reserve based revolving credit facility. Although the company does not maintain significant cash balances, Moody's expects the company to comfortably fund capital spending through cash from operations and revolver drawdowns through mid-2017, which incorporates the anticipation that drilling activity will likely increase in 2017. Cash flow benefits from a significant amount of commodity price hedging through 2017 that should allow WSTR to maintain its drilling program in a lower than currently expected price environment. Moody's expects the company to comply with the financial covenants under its revolver through mid-2017 with little difficulty. The credit facility matures in 2020. The positive outlook reflects WSTR's momentum following its acquisition and restructuring and the possibility that ratings could be upgraded if the company executes its drilling program while maintaining its conservative capital structure. Specifically, ratings could be upgraded if WSTR maintains average daily production greater than 20,000 boe/d while also sustaining retained cash flow to debt of greater than 20% and maintaining adequate liquidity. Ratings could be downgraded if the company undertakes a leveraging acquisition or liquidity deteriorates materially. White Star Petroleum, LLC is an independent exploration & production company headquartered in Oklahoma City, Oklahoma. WHOLELIFE PROPERTIES: Advisor Quits; UST Seeks Dismissal or Ch. 7 ----------------------------------------------------------------- The United States Trustee for Region 6 moves for an order directing the appointment of a Chapter 11 trustee in WholeLife Properties, LLC's case under 11 U.S.C. Sec. 1104(a) or to dismiss or convert the case under 11 U.S.C. Sec. 1112(b). "The Debtor's manager breached his fiduciary responsibilities to the Debtor by failing to cooperate with its attorneys, causing its attorneys Forshey & Prostok to seek withdrawal from representation. The Debtor lacks governance," argues Elizabeth A. Ziegler, of the Office of the U.S. Trustee. ""Cause" exists for the appointment of a chapter 11 trustee. Current management has engaged in gross mismanagement of the bankruptcy estate and appointing a trustee is in the best interest of creditors. In addition, the Debtor, a corporation, is now pro se and corporations are required to be represented by counsel in federal court. In the alternative, cause exists to dismiss or convert this case to chapter 7." On July 7, 2016, the Debtor filed an application to employ Forshey & Prostok, LLP, as its attorneys. But on July 12, 2016, Forshey & Prostok filed a motion to withdraw the application. In seeking the withdrawal, F&P stated that: -- It was unable to obtain the necessary cooperation from management of the Debtor. -- The Debtor has not paid or caused an affiliate to pay the remaining $30,000 of the agreed upon $50,000 retainer. In addition, the U.S. Trustee pointed out that: * To date, the Debtor has not filed any monthly operating reports. * To date, the Debtor has not provided the United States Trustee with a voided DIP check. * To date, the Debtor has not provided the United States Trustee with proof of insurance. * To date, the Debtor has not provided the United States Trustee with tax returns. Moreover, the U.S. Trustee noted that the deadline to file schedules of assets and liabilities was July 8, 2016, but as of July 19, 2016, no schedules have been filed. About WholeLife Properties WholeLife Properties, LLC owns two undeveloped tracts of land located in McKinney, Texas that is intended to be developed into a mixed use complex and 200 social memberships to the TPC at Craig Ranch, a private golf club in McKinney, Texas. WholeLife Properties sought protection under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Tex. Case No. 16-42274) on June 7, 2016. The petition was signed by John B. Lowery, as sole member of WholeLife Companies, Inc., sole member of WholeLife Properties, LLC. The case is assigned to Judge Mark X. Mullin. At the time of the filing, the Debtor estimated assets of $10 million to $50 million and debt of $1 million to $10 million. To date, no committee of unsecured creditors has been appointed. The 341 meeting in this case is set for July 29, 2016. Mr. Lowery was involved in another Chapter 11 debtor, Cornerstone Ministries Investments, Inc., which filed Feb. 10, 2008 (Bankr. N.D. Ga. Case No. 08-20355). Mr. Lowery joined Cornerstone in approximately 2004 to oversee several single family housing projects that were being developed by Cornerstone. WILSON'S OUTDOOR: U.S. Trustee Unable to Appoint Committee ---------------------------------------------------------- The Office of the U.S. Trustee disclosed in a court filing that no official committee of unsecured creditors has been appointed in the Chapter 11 case of Wilson's Outdoor Services LLC. Wilson's Outdoor Services, LLC sought protection under Chapter 11 of the Bankruptcy Code (Bankr. W.D. Pa. Case No. 16-22190) on June 14, 2016. The Debtor is represented by David Z. Valencik, Esq., and Donald R. Calaiaro, Esq., at Calaiaro Valencik. WMG ACQUISITION: Moody's Rates New Senior Secured Notes Ba3 ----------------------------------------------------------- Moody's Investors Service assigned a Ba3 rating to the proposed $300 million senior secured notes due 2023 to be issued by WMG Acquisition Corp., a wholly-owned subsidiary of WMG Holdings Corp., which in turn is a wholly-owned subsidiary of Warner Music Group Corp. ("WMG" or the "company"). Net proceeds from the new notes will be used to retire a like amount of WMG Acquisition Corp.'s senior secured term loan B obligation. The rating outlook is stable. Rating Assigned: Issuer: WMG Acquisition Corp. $300 Million Senior Secured Notes due 2023 -- Ba3 (LGD-3) The assigned rating is subject to review of final documentation and no material change in the size, terms and conditions of the transaction as advised to Moody's. RATINGS RATIONALE Moody's said, "The B1 Corporate Family Rating (CFR) reflects Moody's expectation that WMG will operate with financial leverage as measured by total debt to EBITDA in the 5x-5.75x range (including Moody's standard adjustments) over the rating horizon. We believe WMG will experience further deleveraging from the current estimated level of 5.8x (as of March 31, 2016, pro forma for the recent HoldCo Notes redemption) driven by opportunities to grow EBITDA as a result of lower costs associated with online music subscription and advertising-supported streaming revenue which is now its largest and fastest growing revenue source, underpenetrated markets worldwide for paid music streaming consumption and rising demand for WMG's music content. The recorded music industry continues to transition from physical to digital music platforms, download to streaming services and PC to mobile devices. Following several years of decline, the industry managed to grow 3.2% in 2015 as digital formats expanded internationally, surpassing physical for the first time and comprising 45% of industry revenue." The B1 CFR is supported by WMG's position as the world's third largest recorded music industry player with an extensive music library and publishing assets, which drive recurring revenue streams. Only a small percentage of WMG's annual revenue depends on recording artists and songwriters without an established track record, while the bulk of its revenue is generated by proven artists or from its catalog (defined as albums older than 18 months) and thus isolated from the revenue volatility associated with new releases from new artists. Ratings also recognize the opportunities to grow digital revenue through the proliferation new streaming services, and anticipate the higher margin faster-growth digital revenue will lead to market share gains in the recorded music segment. Moody's said, "Although the recorded music industry experienced growth last year, the B1 CFR embeds the industry's lack of sustainable revenue growth over the past two decades. The rating also reflects challenges and opportunities related to new strategies that the major industry players are pursuing to adapt to the shift in demand for music content delivery to various digital platforms and capture faster growth revenue associated with the transition from downloads to streaming. It also captures the increasing disparity between the hyper-growth of ad-supported music streaming consumption relative to the slower growth revenue generated by the same streams, which means WMG's artists, songwriters and rights holders are not fully monetizing value from this sub-segment. The B1 rating incorporates the seasonal and cyclical nature of recorded music revenue (nearly 85% of WMG's revenue) and low visibility into the ultimate results of upcoming release schedules. We believe WMG will pursue external growth through small tuck-in acquisitions funded with excess cash flow and the potential sale of non-core assets. We expect the company to maintain a good liquidity profile over the next 12-15 months." Rating Outlook Moody's said, "The stable rating outlook reflects our expectation for continued improvement in recorded music industry fundamentals combined with WMG's position as the world's third largest music content provider with global diversification and an enhanced recorded music repertoire. We expect WMG to operate with leverage as measured by total debt to EBITDA in the 5x-5.75x range (Moody's adjusted) and anticipate EBITDA growth to be driven by improved margins as a result of robust streaming revenue growth, value of its music content, realized synergies, solid returns on artist investments, marketing and branding, as well as enhancement of the company's analytics talent." What Could Change the Rating -- Up Ratings could be upgraded if there is evidence of sustained growth in the recorded music industry and WMG exhibits EBITDA margin expansion as well as realization of lower earnings volatility and higher returns on investments. Assurances that management will maintain disciplined operating strategies for long-term growth, exhibit prudent financial policies and target credit metrics consistent with a higher rating resulting in total debt to EBITDA leverage sustained comfortably below 4.5x (Moody's adjusted) and free cash flow to adjusted debt in the mid-to-high single digit range could also lead to an upgrade. Finally, for an upgrade to be considered, Moody's would need clarity from the equity sponsor with respect to the financial policy track record for each of its portfolio company holdings as well as the long-term investment philosophy and exit strategy for WMG. What Could Change the Rating -- Down Ratings could be downgraded if debt-financed acquisitions, competitive pressures or increased artist and repertoire (A&R) investments negatively impact revenue or EBITDA resulting in total debt to EBITDA leverage sustained above 6x (Moody's adjusted), or if heightened capital spending or financial sponsor related actions result in negative free cash flow. With headquarters in New York, NY, WMG Holdings Corp. is a wholly-owned subsidiary of Warner Music Group Corp., a leading music content provider operating domestically and overseas. Revenue totaled approximately $3.1 billion for the twelve months ended March 31, 2016. Recorded music accounts for roughly 84% of revenue while music publishing accounts for about 16% (before corporate allocation). Access Industries, Inc. acquired WMG in a transaction valued at approximately $3 billion in July 2011. WMG ACQUISITION: S&P Assigns 'B' Rating on Proposed Sr. Sec. Notes ------------------------------------------------------------------ S&P Global Ratings assigned its 'B' issue-level rating and '3' recovery rating to New York City-based WMG Acquisition Corp.'s proposed senior secured notes. 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 company plans to use the net proceeds to repay a portion of the outstanding term loan facility. WMG Acquisition is a subsidiary of Warner Music Group Corp. (WMG). S&P's 'B' corporate credit rating on WMG reflects the company's fair business risk profile. S&P's assessment incorporates the company's large and well-diversified portfolio of recordings and compositions across multiple genres and regions and its smaller market share than its significantly larger peers. S&P assess WMG's financial risk profile as highly leveraged, based on S&P's expectation that the company's adjusted leverage will remain above 5x through the end of the fiscal year ending Sept. 30, 2017. Although S&P believes WMG would look for additional opportunities to reduce leverage, S&P expects the company to prioritize its free cash flow into investing in the business, leaving insufficient excess cash flow to materially reduce leverage. Therefore, given the lack of visibility regarding the pace of voluntary debt reduction, S&P don't expect this strategy, by itself, to materially reduce leverage. Rather, S&P expects leverage reduction primarily from EBITDA growth. S&P forecasts that EBITDA will grow about 10%-12% in 2016 and 8%-10% in 2017, which could result in adjusted leverage declining to the low-5x area by the end of 2017. RATINGS LIST Warner Music Group Corp. Corporate Credit Rating B/Stable/-- New Ratings WMG Acquisition Corp. Senior secured notes B Recovery Rating 3H WWLINKS INC: Taps Rob Miller as Investment Banking Consultant ------------------------------------------------------------- WWLinks, Inc. seeks approval from the U.S. Bankruptcy Court for the Southern District of Florida to hire an investment banking consultant. The Debtor proposes to hire Rob Miller of Commercial Capital Services, LLC to look for a financial institution willing to refinance the Debtor's first mortgage and the loan with Z Worldwide, Inc. Mr. Miller will receive an advisory fee of 2% of the final funding amount payable immediately upon closing of the financing. In a court filing, Mr. Miller, president of Commercial Capital, disclosed that he and his firm do not represent any interest adverse to the Debtor or its estate. The firm can be reached through: Rob Miller Commercial Capital Services, LLC 3181 Linwood Ave. #24 Cincinnati, Ohio 45208 Phone: 513-871-6700 Fax: 513-871-8040 The Debtor can be reached through: Malinda L. Hayes, Esq. Markarian Frank & Hayes 2925 PGA Blvd., #204 Palm Beach Gardens, FL 33410 Phone: (561) 626-4700 Fax: (561) 627-9479 About WWLinks Inc. WWLinks, Inc. sought protection under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Fla. Case No. 15-30158) on November 16, 2015. YEP LLC: Seeks to Hire Donald Singer as Special Counsel ------------------------------------------------------- YEP, LLC seeks approval from the U.S. Bankruptcy Court for the Southern District of New York to hire a special counsel. The Debtor proposes to hire Donald Singer, Esq., to conduct the closing on the sale of its real property located in Cortlandt Manor, New York. Mr. Singer will receive a lump sum of $3,000 and reimbursement of work-related expenses for his services. In a court filing, Mr. Singer disclosed that he does not represent any interest adverse to the Debtor or its estate. Mr. Singer maintains an office at: Donald L. Singer, Esq. 74 Cordwood Road Cortlandt Manor, New York 10567 About YEP, LLC YEP, LLC, sought Chapter 11 protection (Bankr. S.D.N.Y. Case No. 14-23149) on Aug. 11, 2014. Rosemarie E. Matera, Esq. at Kurtzman Matera, PC serves as the Debtor's counsel. The Debtor estimated assets of $117,103 and liabilities of $395,874. The petition was signed by Thomas Pellegrino, managing member. ZERGA PHIN-KER: Hearing to Approve Liquidating Plan Set for Aug. 30 ------------------------------------------------------------------- The U.S. Bankruptcy Court for the Eastern District of Texas on July 19 approved the Chapter 11 plan of liquidation proposed by Zerga Phin-Ker LP. The plan proposes for the liquidation of Zerga's assets, primarily the Parkview on Hollybrook, a senior retirement facility in the City of Longview, Gregg County, Texas. It consists of 126 units, an assisted living and memory care facility, and common areas. The facility is being offered for sale through a bidding process. The occurrence of the effective date of the plan is contingent upon the closing of the sale to the winning bidder, according to the disclosure statement detailing the plan. Under the liquidating plan, general unsecured creditors will be paid a pro rata share of the remaining assets after distributions to secured creditors and repayment of the funding required for wind-down. The court set an August 24 deadline for voting creditors to file their ballots, and an August 29 deadline for Zerga to file a ballot report. Objections to the plan are due by August 24. The hearing to consider confirmation of the plan is scheduled for August 30, at 10:00 a.m. The hearing will take place at the courtroom of Judge Brenda Rhoades located at 660 N. Central Expressway, Suite 300B, Plano, Texas. About Zerga Phin-Ker Zerga Phin-Ker LP filed a Chapter 11 bankruptcy petition (Bankr. E.D. Tex. Case No. 15-42087) on Nov. 20, 2015. The petition was signed by Jerry Green as co-president. Judge Brenda T. Rhoades is assigned to the case. Zerga Phin-Ker LP is a Texas limited partnership whose principal place of business is in McKinney, Texas. The Debtor was engaged in the acquisition, construction, and development of a senior retirement facility in the City of Longview, Gregg County, Texas, to be known as "Parkview on Hollybrook," consisting of 126 independent living units, an assisted living and memory care facility, and common areas . The Debtor estimated assets and liabilities in the range of $10 million to $50 million. The Debtor tapped Lewis Brisbois Bisgaard & Smith LLP as counsel. On Feb. 17, 2016, the Court entered a final order approving the Debtor's emergency application to employ CohnReznick LLP as restructuring advisor and designate Chad J. Shandler as Chief Restructuring Officer Effective as of December 15, 2015. [*] Singapore Seeks U.S. Ch. 11 Prowess in Bankruptcy Reform ------------------------------------------------------------ The American Bankruptcy Institute, citing David Yong of Bloomberg News, reported that Singapore is seeking to enhance its position as a center for debt restructuring by giving its insolvency law some of the powers of the U.S. bankruptcy code’s Chapter 11, just as companies worldwide default on bonds at the fastest pace since the global financial crisis. According to the report, the government has "broadly accepted" 17 recommendations submitted by a committee after a yearlong review, the Ministry of Law said in a statement. Those include offering automatic stay of legal and enforcement actions for debtors, creating a bench of specialist judges for its bankruptcy court and increasing rescue-financing capital by enticing distressed-debt funds and private equity firms to set up shop in the city-state, the report related. "We have all the basic building blocks for dealing with restructuring and we see that Singapore will be able to fill this space," the report cited Indranee Rajah, senior minister of state for law, as telling reporters. "Singapore should not just be a debt restructuring place for Singapore companies and businesses but a global debt restructuring center much in the way as New York and London. We should be playing that role to the region and beyond." There have been 100 bond defaults globally this year through July 15 compared with 62 failures at this time last year, the report noted, citing S&P Global Ratings, the worst since the fallout from the demise of Lehman Brothers Holdings Inc. In Singapore, non-payments by PT Trikomsel Oke and Pacific Andes Resources Development Ltd. from November marked the first defaults since 2009, the report said. "The recommendations are progressive," Ashok Kumar, Esq. -- ashok.kumar@blackoak-llc.com -- a director at BlackOak LLC, a restructuring and insolvency law firm in Singapore, told Reuters. "The market needs it as over the next couple of years, things are going to be rough in some sectors as the risk of debt default rises." [^] BOND PRICING: For the Week from July 18 to 22, 2016 ------------------------------------------------------- Company Ticker Coupon Bid Price Maturity ------- ------ ------ --------- -------- A. M. Castle & Co CAS 12.750 74.875 12/15/2016 A. M. Castle & Co CAS 7.000 58.625 12/15/2017 ACE Cash Express Inc AACE 11.000 45.000 2/1/2019 ACE Cash Express Inc AACE 11.000 42.000 2/1/2019 Affinion Group Inc AFFINI 7.875 47.500 12/15/2018 Affinion Investments LLC AFFINI 13.500 52.500 8/15/2018 Alpha Appalachia Holdings Inc ANR 3.250 0.550 8/1/2015 Alpha Natural Resources Inc ANR 6.000 0.200 6/1/2019 Alpha Natural Resources Inc ANR 6.250 0.250 6/1/2021 Alpha Natural Resources Inc ANR 7.500 0.938 8/1/2020 Alpha Natural Resources Inc ANR 4.875 0.500 12/15/2020 Alpha Natural Resources Inc ANR 7.500 0.938 8/1/2020 Alpha Natural Resources Inc ANR 7.500 4.670 8/1/2020 American Eagle Energy Corp AMZG 11.000 11.875 9/1/2019 American Eagle Energy Corp AMZG 11.000 12.500 9/1/2019 American Gilsonite Co AMEGIL 11.500 67.000 9/1/2017 American Gilsonite Co AMEGIL 11.500 66.625 9/1/2017 Amyris Inc AMRS 6.500 27.500 5/15/2019 Arch Coal Inc ACI 7.000 2.350 6/15/2019 Arch Coal Inc ACI 7.250 2.350 6/15/2021 Arch Coal Inc ACI 7.250 2.000 10/1/2020 Arch Coal Inc ACI 9.875 2.350 6/15/2019 Arch Coal Inc ACI 8.000 2.250 1/15/2019 Arch Coal Inc ACI 8.000 1.839 1/15/2019 Armstrong Energy Inc ARMS 11.750 42.120 12/15/2019 Armstrong Energy Inc ARMS 11.750 41.125 12/15/2019 Atlas Energy Holdings Operating Co LLC / Atlas Resource Finance Corp ARP 7.750 13.000 1/15/2021 Atlas Energy Holdings Operating Co LLC / Atlas Resource Finance Corp ARP 9.250 9.698 8/15/2021 Atlas Energy Holdings Operating Co LLC / Atlas Resource Finance Corp ARP 9.250 9.500 8/15/2021 Atlas Energy Holdings Operating Co LLC / Atlas Resource Finance Corp ARP 9.250 9.500 8/15/2021 Avaya Inc AVYA 10.500 29.000 3/1/2021 Avaya Inc AVYA 10.500 25.000 3/1/2021 BPZ Resources Inc BPZR 6.500 1.500 3/1/2015 BPZ Resources Inc BPZR 6.500 2.813 3/1/2049 Basic Energy Services Inc BAS 7.750 38.545 2/15/2019 BreitBurn Energy Partners LP / BreitBurn Finance Corp BBEP 7.875 24.750 4/15/2022 BreitBurn Energy Partners LP / BreitBurn Finance Corp BBEP 8.625 24.375 10/15/2020 BreitBurn Energy Partners LP / BreitBurn Finance Corp BBEP 8.625 24.000 10/15/2020 BreitBurn Energy Partners LP / BreitBurn Finance Corp BBEP 8.625 24.000 10/15/2020 Caesars Entertainment Operating Co Inc CZR 10.000 41.250 12/15/2018 Caesars Entertainment Operating Co Inc CZR 12.750 42.500 4/15/2018 Caesars Entertainment Operating Co Inc CZR 10.000 40.750 12/15/2018 Caesars Entertainment Operating Co Inc CZR 5.750 35.500 10/1/2017 Caesars Entertainment Operating Co Inc CZR 5.750 12.250 10/1/2017 Caesars Entertainment Operating Co Inc CZR 10.000 40.625 12/15/2018 Caesars Entertainment Operating Co Inc CZR 10.000 40.625 12/15/2018 Caesars Entertainment Operating Co Inc CZR 10.000 40.250 12/15/2018 Chassix Holdings Inc CHASSX 10.000 8.000 12/15/2018 Chassix Holdings Inc CHASSX 10.000 8.000 12/15/2018 Claire's Stores Inc CLE 8.875 17.380 3/15/2019 Claire's Stores Inc CLE 7.750 7.750 6/1/2020 Claire's Stores Inc CLE 10.500 56.200 6/1/2017 Claire's Stores Inc CLE 9.000 57.125 3/15/2019 Claire's Stores Inc CLE 9.000 53.500 3/15/2019 Claire's Stores Inc CLE 7.750 7.500 6/1/2020 Clean Energy Fuels Corp CLNE 7.500 90.862 8/30/2016 Community Choice Financial Inc CCFI 10.750 51.000 5/1/2019 Comstock Resources Inc CRK 7.750 44.000 4/1/2019 Comstock Resources Inc CRK 9.500 43.500 6/15/2020 Creditcorp CRECOR 12.000 40.450 7/15/2018 Creditcorp CRECOR 12.000 39.875 7/15/2018 Cumulus Media Holdings Inc CMLS 7.750 43.000 5/1/2019 EPL Oil & Gas Inc EXXI 8.250 9.500 2/15/2018 EXCO Resources Inc XCO 7.500 47.292 9/15/2018 Eagle Rock Energy Partners LP / Eagle Rock Energy Finance Corp EROC 8.375 44.500 6/1/2019 Endeavour International Corp END 12.000 0.006 6/1/2018 Energy & Exploration Partners Inc ENEXPR 8.000 1.970 7/1/2019 Energy & Exploration Partners Inc ENEXPR 8.000 1.970 7/1/2019 Energy Conversion Devices Inc ENER 3.000 7.875 6/15/2013 Energy Future Holdings Corp TXU 11.250 90.000 11/1/2017 Energy Future Holdings Corp TXU 10.875 90.000 11/1/2017 Energy Future Holdings Corp TXU 9.750 20.000 10/15/2019 Energy Future Holdings Corp TXU 10.875 50.250 11/1/2017 Energy Future Intermediate Holding Co LLC / EFIH Finance Inc TXU 10.000 1.000 12/1/2020 Energy Future Intermediate Holding Co LLC / EFIH Finance Inc TXU 10.000 3.000 12/1/2020 Energy Future Intermediate Holding Co LLC / EFIH Finance Inc TXU 9.750 10.550 10/15/2019 Energy XXI Gulf Coast Inc EXXI 11.000 38.500 3/15/2020 Energy XXI Gulf Coast Inc EXXI 7.500 12.250 12/15/2021 Energy XXI Gulf Coast Inc EXXI 9.250 11.938 12/15/2017 Energy XXI Gulf Coast Inc EXXI 6.875 12.250 3/15/2024 Energy XXI Gulf Coast Inc EXXI 7.750 13.000 6/15/2019 ExamWorks Group Inc EXAM 5.625 111.200 4/15/2023 FBOP Corp FBOPCP 10.000 1.843 1/15/2009 FXCM Inc FXCM 2.250 35.750 6/15/2018 FairPoint Communications Inc/Old FRP 13.125 1.879 4/2/2018 Fleetwood Enterprises Inc FLTW 14.000 3.557 12/15/2011 Forbes Energy Services Ltd FES 9.000 38.088 6/15/2019 Gibson Brands Inc GIBSON 8.875 50.000 8/1/2018 Gibson Brands Inc GIBSON 8.875 55.500 8/1/2018 Gibson Brands Inc GIBSON 8.875 45.000 8/1/2018 Goodman Networks Inc GOODNT 12.125 42.000 7/1/2018 Halcon Resources Corp HKUS 9.750 24.000 7/15/2020 Halcon Resources Corp HKUS 8.875 22.375 5/15/2021 Halcon Resources Corp HKUS 9.250 19.560 2/15/2022 Horsehead Holding Corp ZINC 9.000 20.250 6/1/2017 Illinois Power Generating Co DYN 7.000 36.250 4/15/2018 Illinois Power Generating Co DYN 6.300 36.375 4/1/2020 Iracore International Holdings Inc IRACOR 9.500 59.125 6/1/2018 Iracore International Holdings Inc IRACOR 9.500 59.125 6/1/2018 IronGate Energy Services LLC IRONGT 11.000 22.500 7/1/2018 IronGate Energy Services LLC IRONGT 11.000 22.750 7/1/2018 IronGate Energy Services LLC IRONGT 11.000 22.750 7/1/2018 IronGate Energy Services LLC IRONGT 11.000 22.750 7/1/2018 Kellwood Co KWD 7.625 60.100 10/15/2017 Las Vegas Monorail Co LASVMC 5.500 3.852 7/15/2019 Lehman Brothers Holdings Inc LEH 2.000 3.492 3/3/2009 Lehman Brothers Holdings Inc LEH 1.500 3.492 3/29/2013 Lehman Brothers Holdings Inc LEH 2.070 3.492 6/15/2009 Lehman Brothers Holdings Inc LEH 1.383 3.492 6/15/2009 Lehman Brothers Holdings Inc LEH 1.600 3.492 11/5/2011 Lehman Brothers Holdings Inc LEH 5.000 3.492 2/7/2009 Lehman Brothers Holdings Inc LEH 4.000 3.492 4/30/2009 Lehman Brothers Inc LEH 7.500 1.226 8/1/2026 Liberty Interactive LLC LINTA 1.000 86.375 9/30/2043 Linc USA GP / Linc Energy Finance USA Inc LNCAU 9.625 22.250 10/31/2017 Linn Energy LLC / Linn Energy Finance Corp LINE 8.625 20.000 4/15/2020 Linn Energy LLC / Linn Energy Finance Corp LINE 12.000 40.000 12/15/2020 Linn Energy LLC / Linn Energy Finance Corp LINE 6.500 19.750 5/15/2019 Linn Energy LLC / Linn Energy Finance Corp LINE 6.250 19.938 11/1/2019 Linn Energy LLC / Linn Energy Finance Corp LINE 7.750 18.002 2/1/2021 Linn Energy LLC / Linn Energy Finance Corp LINE 6.500 18.003 9/15/2021 Linn Energy LLC / Linn Energy Finance Corp LINE 6.250 84.000 11/1/2019 Linn Energy LLC / Linn Energy Finance Corp LINE 6.250 18.875 11/1/2019 Logan's Roadhouse Inc LGNS 10.750 4.500 10/15/2017 Lonestar Resources America Inc LNRAU 8.750 39.750 4/15/2019 Lonestar Resources America Inc LNRAU 8.750 46.000 4/15/2019 Lumbermens Mutual Casualty Co KEMPER 8.300 0.001 12/1/2037 Lumbermens Mutual Casualty Co KEMPER 9.150 0.489 7/1/2026 Lumbermens Mutual Casualty Co KEMPER 8.450 0.489 12/1/2097 MF Global Holdings Ltd MF 3.375 21.000 8/1/2018 MModal Inc MODL 10.750 10.125 8/15/2020 Magnetation LLC / Mag Finance Corp MAGNTN 11.000 5.375 5/15/2018 Magnetation LLC / Mag Finance Corp MAGNTN 11.000 5.375 5/15/2018 Magnetation LLC / Mag Finance Corp MAGNTN 11.000 5.375 5/15/2018 Midstates Petroleum Co Inc / Midstates Petroleum Co LLC MPO 10.750 2.000 10/1/2020 Midstates Petroleum Co Inc / Midstates Petroleum Co LLC MPO 9.250 1.250 6/1/2021 Midstates Petroleum Co Inc / Midstates Petroleum Co LLC MPO 12.000 8.375 6/1/2020 Midstates Petroleum Co Inc / Midstates Petroleum Co LLC MPO 10.750 1.888 10/1/2020 Midstates Petroleum Co Inc / Midstates Petroleum Co LLC MPO 10.750 1.888 10/1/2020 Modular Space Corp MODSPA 10.250 46.500 1/31/2019 Modular Space Corp MODSPA 10.250 36.125 1/31/2019 Molycorp Inc MCP 10.000 1.000 6/1/2020 Molycorp Inc MCP 3.250 0.300 6/15/2016 Murray Energy Corp MURREN 11.250 25.750 4/15/2021 Murray Energy Corp MURREN 9.500 25.625 12/5/2020 Murray Energy Corp MURREN 11.250 25.625 4/15/2021 Murray Energy Corp MURREN 9.500 25.625 12/5/2020 New Gulf Resources LLC/ NGR Finance Corp NGREFN 12.250 3.031 5/15/2019 New Gulf Resources LLC/ NGR Finance Corp NGREFN 12.250 3.031 5/15/2019 New Gulf Resources LLC/ NGR Finance Corp NGREFN 12.250 2.858 5/15/2019 Nine West Holdings Inc JNY 6.125 19.158 11/15/2034 Nine West Holdings Inc JNY 6.875 17.720 3/15/2019 Nine West Holdings Inc JNY 8.250 17.500 3/15/2019 Nine West Holdings Inc JNY 8.250 17.500 3/15/2019 Noranda Aluminum Acquisition Corp NOR 11.000 0.500 6/1/2019 Nuverra Environmental Solutions Inc NESC 9.875 34.900 4/15/2018 OMX Timber Finance Investments II LLC OMX 5.540 12.750 1/29/2020 Optima Specialty Steel Inc OPTSTL 12.500 80.000 12/15/2016 Optima Specialty Steel Inc OPTSTL 12.500 70.500 12/15/2016 Orexigen Therapeutics Inc OREX 2.750 23.750 12/1/2020 Peabody Energy Corp BTU 6.000 12.800 11/15/2018 Peabody Energy Corp BTU 6.500 12.438 9/15/2020 Peabody Energy Corp BTU 6.250 12.593 11/15/2021 Peabody Energy Corp BTU 10.000 14.000 3/15/2022 Peabody Energy Corp BTU 4.750 0.510 12/15/2041 Peabody Energy Corp BTU 7.875 12.000 11/1/2026 Peabody Energy Corp BTU 10.000 16.320 3/15/2022 Peabody Energy Corp BTU 6.000 17.250 11/15/2018 Peabody Energy Corp BTU 6.250 12.875 11/15/2021 Peabody Energy Corp BTU 6.250 12.875 11/15/2021 Peabody Energy Corp BTU 6.000 12.750 11/15/2018 Penn Virginia Corp PVAH 7.250 36.000 4/15/2019 Penn Virginia Corp PVAH 8.500 41.000 5/1/2020 Permian Holdings Inc PRMIAN 10.500 29.500 1/15/2018 Permian Holdings Inc PRMIAN 10.500 29.375 1/15/2018 Pernix Therapeutics Holdings Inc PTX 4.250 22.625 4/1/2021 Pernix Therapeutics Holdings Inc PTX 4.250 21.308 4/1/2021 PetroQuest Energy Inc PQ 10.000 51.975 9/1/2017 Prospect Holding Co LLC / Prospect Holding Finance Co PRSPCT 10.250 29.773 10/1/2018 Prospect Holding Co LLC / Prospect Holding Finance Co PRSPCT 10.250 29.773 10/1/2018 Quicksilver Resources Inc KWKA 9.125 5.000 8/15/2019 Quicksilver Resources Inc KWKA 11.000 3.125 7/1/2021 Rex Energy Corp REXX 8.875 35.490 12/1/2020 Rex Energy Corp REXX 6.250 23.375 8/1/2022 Rolta LLC RLTAIN 10.750 18.000 5/16/2018 SAExploration Holdings Inc SAEX 10.000 47.000 7/15/2019 Sabine Oil & Gas Corp SOGC 7.250 2.000 6/15/2019 Sabine Oil & Gas Corp SOGC 7.500 2.000 9/15/2020 Sabine Oil & Gas Corp SOGC 7.500 0.658 9/15/2020 Sabine Oil & Gas Corp SOGC 7.500 0.658 9/15/2020 Samson Investment Co SAIVST 9.750 3.100 2/15/2020 SandRidge Energy Inc SD 8.750 37.500 6/1/2020 SandRidge Energy Inc SD 8.750 6.000 1/15/2020 SandRidge Energy Inc SD 7.500 6.688 2/15/2023 SandRidge Energy Inc SD 7.500 6.000 3/15/2021 SandRidge Energy Inc SD 8.125 5.750 10/15/2022 SandRidge Energy Inc SD 8.750 42.500 6/1/2020 SandRidge Energy Inc SD 7.500 6.000 2/16/2023 SandRidge Energy Inc SD 8.125 6.000 10/16/2022 SandRidge Energy Inc SD 7.500 6.125 3/15/2021 SandRidge Energy Inc SD 7.500 6.125 3/15/2021 Sequa Corp SQA 7.000 15.000 12/15/2017 Sequa Corp SQA 7.000 15.000 12/15/2017 Sequenom Inc SQNM 5.000 60.750 1/1/2018 Sequenom Inc SQNM 5.000 59.750 10/1/2017 Seventy Seven Energy Inc SSEI 6.500 6.875 7/15/2022 Sidewinder Drilling Inc SIDDRI 9.750 7.000 11/15/2019 Sidewinder Drilling Inc SIDDRI 9.750 7.000 11/15/2019 Speedy Cash Intermediate Holdings Corp SPEEDY 10.750 63.250 5/15/2018 Speedy Cash Intermediate Holdings Corp SPEEDY 10.750 63.000 5/15/2018 Speedy Cash Intermediate Holdings Corp SPEEDY 10.750 63.250 5/15/2018 Speedy Cash Intermediate Holdings Corp SPEEDY 10.750 63.000 5/15/2018 Speedy Group Holdings Corp SPEEDY 12.000 30.988 11/15/2017 Speedy Group Holdings Corp SPEEDY 12.000 30.875 11/15/2017 SquareTwo Financial Corp SQRTW 11.625 11.875 4/1/2017 Stone Energy Corp SGY 1.750 57.000 3/1/2017 SunEdison Inc SUNE 5.000 34.000 7/2/2018 SunEdison Inc SUNE 2.000 6.010 10/1/2018 SunEdison Inc SUNE 0.250 4.250 1/15/2020 SunEdison Inc SUNE 2.750 5.000 1/1/2021 SunEdison Inc SUNE 2.375 5.000 4/15/2022 SunEdison Inc SUNE 2.625 6.000 6/1/2023 SunEdison Inc SUNE 3.375 5.000 6/1/2025 Syniverse Holdings Inc SVR 9.125 52.589 1/15/2019 TMST Inc THMR 8.000 14.000 5/15/2013 Talos Production LLC / Talos Production Finance Inc TALPRO 9.750 45.950 2/15/2018 Talos Production LLC / Talos Production Finance Inc TALPRO 9.750 45.000 2/15/2018 TerraVia Holdings Inc TVIA 6.000 58.000 2/1/2018 Terrestar Networks Inc TSTR 6.500 10.000 6/15/2014 TetraLogic Pharmaceuticals Corp TLOG 8.000 24.971 6/15/2019 Texas Competitive Electric Holdings Co LLC / TCEH Finance Inc TXU 11.500 35.250 10/1/2020 Texas Competitive Electric Holdings Co LLC / TCEH Finance Inc TXU 10.250 6.400 11/1/2015 Texas Competitive Electric Holdings Co LLC / TCEH Finance Inc TXU 15.000 6.400 4/1/2021 Texas Competitive Electric Holdings Co LLC / TCEH Finance Inc TXU 10.250 6.400 11/1/2015 Texas Competitive Electric Holdings Co LLC / TCEH Finance Inc TXU 11.500 34.500 10/1/2020 Texas Competitive Electric Holdings Co LLC / TCEH Finance Inc TXU 15.000 6.350 4/1/2021 Texas Competitive Electric Holdings Co LLC / TCEH Finance Inc TXU 10.250 6.375 11/1/2015 Triangle USA Petroleum Corp TPLM 6.750 22.489 7/15/2022 Triangle USA Petroleum Corp TPLM 6.750 23.875 7/15/2022 UCI International LLC UCII 8.625 22.750 2/15/2019 Venoco Inc VQ 8.875 3.100 2/15/2019 Verso Paper Holdings LLC / Verso Paper Inc VRS 11.750 0.150 1/15/2019 Verso Paper Holdings LLC / Verso Paper Inc VRS 11.750 17.000 1/15/2019 Verso Paper Holdings LLC / Verso Paper Inc VRS 11.750 17.000 1/15/2019 W&T Offshore Inc WTI 8.500 29.800 6/15/2019 Walter Energy Inc WLTG 9.875 0.450 12/15/2020 Walter Energy Inc WLTG 9.500 18.625 10/15/2019 Walter Energy Inc WLTG 9.500 18.625 10/15/2019 Walter Energy Inc WLTG 9.875 0.411 12/15/2020 Walter Energy Inc WLTG 9.500 18.625 10/15/2019 Walter Energy Inc WLTG 9.875 0.411 12/15/2020 Walter Energy Inc WLTG 9.500 18.625 10/15/2019 Walter Investment Management Corp WAC 4.500 37.375 11/1/2019 Warren Resources Inc WRES 9.000 3.365 8/1/2022 Warren Resources Inc WRES 9.000 3.365 8/1/2022 Warren Resources Inc WRES 9.000 3.365 8/1/2022 iHeartCommunications Inc IHRT 10.000 56.162 1/15/2018 rue21 inc RUE 9.000 35.000 10/15/2021 rue21 inc RUE 9.000 34.500 10/15/2021 ********* 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 ***