/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/160812.mbx T R O U B L E D C O M P A N Y R E P O R T E R Friday, August 12, 2016, Vol. 20, No. 225 Headlines 22ND CENTURY: Incurs $2.90 Million Net Loss in Second Quarter 40 CHESAPEAKE: Case Summary & 6 Unsecured Creditors 500 NORTH AVENUE: Can Use Cash Collateral Until Oct. 31 ACMD HOLDING: U.S. Trustee Unable to Appoint Committee ADAMIS PHARMACEUTICALS: Sabby Mgt Reports 7.7% Stake AKO INTERIOR: Unsecureds to Get 30% Under 6th Amended Plan ALL PHASE: Cash Use for $172K in Expenses Until Aug. 31 Approved ALLWAYS EAST: Wants to Obtain DIP Loan From Merchants Automotive AMERICAN CONTAINER: Wants to Use CM Sterling Cash Collateral ARMONK SNACK: Seeks March 2017 Plan Filing Deadline Extension BC EQUITY: Moody's Assigns B3 Corporate Family Rating BCD ACQUISITION: S&P Assigns 'B' CCR & Rates $670MM Notes 'B' BELK INC: Bank Debt Trades at 13% Off BINDER & BINDER: Unsecured Creditors to Get 6.6% to 8.6% Under Plan BREITBURN ENERGY: Seeks Exclusivity Extension Thru March 11 CANCER GENETICS: Incurs $4.02 Million Net Loss in Second Quarter CASPIAN SERVICES: Extends CEO's Term by 3 Additional Years CHICAGO: Schools Budget Uses Pension Overhaul to Close Gap CHINA FISHERY: Club Lender Parties Seek Ch. 11 Trustee Appointment CHINA FISHERY: Lenders Call for Trustee to Take Over Company CHUNG FAT SUPERMARKET: U.S. Trustee Forms 2-Member Committee COCRYSTAL PHARMA: Incurs $3.2 Million Net Loss in Second Quarter CRAIG ALLEN NEWHOUSE: U.S. Trustee Unable to Appoint Committee CRCI HOLDINGS: Moody's Assigns B2 Corporate Family Rating CS MINING: Hires FTI Consulting to Provide CROs CYMA CLEANING: Court Confirms Plan, Approves Disclosure Statement CYRUS WAY HOLDINGS: Hires Larry Feinstein as Counsel DG3 HOLDINGS: SSG Acted as Investment Banker in Equity Sale DONALD GAUBE: Files Plan to Exit Chapter 11 Protection DRYSDALE VILLAGE: Wants to Use AEA Federal Credit Union's Cash EAST END: Court Narrows Claims vs Amalgamated Bank ELITE PHARMACEUTICALS: Reports First Quarter Net Income of $1.09M ENERGY TRANSFER: Bank Debt Trades at 3% Off EXELIXIS INC: Enters Into Exchange Agreements with Noteholders FENDER MUSICAL: Moody's Hikes Corporate Family Rating to B1 FINJAN HOLDINGS: Incurs $4.58 Million Net Loss in Second Quarter FLORIDA FOREST: U.S. Trustee Unable to Appoint Committee FORESIGHT ENERGY: Incurs $27.7 Million Net Loss in Second Quarter GATES GROUP: Bank Debt Trades at 2% Off GAWKER MEDIA: Settling Daily Mail's Defamation Suit GENON ENERGY: Incurs $116 Million Net Loss in Second Quarter GLOBAL GEOPHYSICAL: Wants to Access $2-Mil. DIP Facility GYMBOREE CORP: Bank Debt Trades at 22% Off HILLSBOROUGH RIVER: Taps Suzy Tate as Counsel HOOVER GROUP: Ferguson Merger No Impact on Moody's B3 CFR ILLINOIS POWER: Reports $570 Million Net Loss for Second Quarter IMAGEWARE SYSTEMS: Incurs $2.42 Million Net Loss in Second Quarter INTERNATIONAL BRIDGE: Has Until Feb. 2017 to File Plan INVENTIV HEALTH: Files Copy of Presentation Materials with SEC ISAACS AUTOMOTIVE: Hires David Lord as Attorney J-TASTE INC: Unsecured Creditors to Get 14% Under Plan J. CREW: Bank Debt Trades at 30% Off JAMES DEWAYNE MANNING: Bid for Appointment of Examiner Granted JAMUS CORP: Gets Court Approval of Plan to Exit Bankruptcy JOSEPH KOKROKO: Hearing to Consider Disclosures Set for Sept. 20 KCC INTERNATIONAL: U.S. Trustee Unable to Appoint Committee KIDS ONLY II: Court to Take Up Liquidating Plan on Sept. 13 LA4EVER, LLC: Can Use Cash Collateral Until Aug. 31 LAST CALL GUARANTOR: Files for Bankruptcy to Pursue Sale LAST CALL GUARANTOR: Hires Epiq as Claims & Noticing Agent LES CHEVEUX: Case Summary & 20 Largest Unsecured Creditors LIQUIDMETAL TECHNOLOGIES: Incurs $824,000 Net Loss in 2nd Quarter LITE SOLAR: Taps Leslie Cohen as Bankruptcy Counsel LIVE OAK: Authorized to Use IRS Cash Collateral on Interim Basis LONG-DEI LIU: Has Until Dec. 8 to Use Cash Collateral LPATH INC: Incurs $2.66 Million Net Loss in Second Quarter LYONDELL CHEMICAL: $6.3B Clawback Claim Reinstated LYONDELL CHEMICAL: Shareholders' Bids to Junk Trustee's Suit OK'd MANUFACTURERS ASSOCIATES: Can Use Nuvo Cash Until Aug. 31 MD AMERICA: Moody's Withdraws Caa2 Corporate Family Ratings MEDOMICS LLC: Needs Wells Fargo Approval to Use Cash Collateral MGM RESORTS: Offering $500-Mil. Senior Unsecured Notes Due 2026 MIKEY AND SUNSHINE: Taps Wells and Jarvis as Attorneys MO'TREES LLC: Disclosure Statement Hearing Moved to Aug. 26 MO'TREES LLC: Farm Credit Opposes Approval of Disclosure Statement MUELLER & DRURY: Disclosure Statement Hearing Set for Sept. 14 MURPHY OIL: Moody's Rates New $500MM Unsec. Notes Due 2024 'B1' MUSCLEPHARM CORP: Incurs $4.19 Million Net Loss in Second Quarter NAKED BRAND: Says New Sales Team to Drive Growth NAKED BRAND: Stockholders Elect Seven Directors NATIONAL CINEMEDIA: Posts $6.8-Mil. Net Income for Second Quarter NEIMAN MARCUS: Bank Debt Trades at 6% Off NEONODE INC: Incurs $1.33 Million Net Loss in Second Quarter NET ELEMENT INC: Elects to Swap $200,000 for Common Shares NEWASURION CORP: S&P Affirms 'B' CCR, Outlook Remains Positive OPA-LOCKA, FL: Prosecutors Charge Ex-City Officials of Bribery OSHUN LLC: Seeks Authorization to Use Cash Collateral PAGOSA PARTNERS: Case Summary & 9 Unsecured Creditors PARAGON OFFSHORE: Executes Amendment to Plan Support Agreement PATRICK O'NEAL CHEVERS: Disclosures OK'd; Aug. 30 Plan Hearing Set PEABODY ENERGY: Business Plan Approved by Bankruptcy Lenders PEABODY ENERGY: DIP Lenders Approve Business Plan PEABODY ENERGY: Lenders Accept Miner's Business Plan PEDRO LOPEZ MUNOZ: Trustee Appointment Not Warranted, BAP Affirms PLUG POWER: Incurs $13.1 Million Net Loss in Second Quarter PROLINE CONCRETE: Can Use Bank of Akron's Cash Until Aug. 15 PUERTO RICO: Treasury Didn't Tell Island to Default, Lawyer Says QUIZNOS: Former Executives Seek Indemnification RED RIVER SOUTH: Hires Robert Raley as Attorney REDPRAIRIE CORP: Bank Debt Trades at 3% Off REGATTA CONSTRUCTION: Can Use Cash Collateral Until Aug. 31 REVOLVE SOLAR: Wants Authorization to Use Cash Collateral RICHARD MERRITT: Unsecureds Get Nothing Under Plan ROCKWELL MEDICAL: Incurs $5.36 Million Net Loss in Second Quarter RONALD WALTERS: Disclosure Statement Hearing Continued to Oct. 5 ROSETTA GENOMICS: Shareholders OK All Proposals at Annual Meeting SABINE OIL: Reorganization Plan Takes Effect, Exits Chapter 11 SCIENTIFIC GAMES: Names Kevin Sheehan as New President and CEO SCOTT SWIMMING: Has Until Aug. 31 to Use Cash Collateral SEA LEVEL VIEW: Case Summary & Unsecured Creditor SEQUENOM INC: To be Acquired by LabCorp for $2.40 Per Share SOLAR POWER: Announces New Management Appointments STACEY TYLER: Court to Take Up Liquidating Plan on Sept. 22 STELLAR BIOTECHNOLOGIES: Incurs $1.19-Mil. Net loss in 2nd Quarter STEREOTAXIS INC: Reports 2016 Second Quarter Financial Results STEVEN PALLADINO: College May Keep Tuition Paid by Bankrupt Parents SUNCOAST LED: U.S. Trustee Unable to Appoint Committee SUNEDISON INC: NRG Energy Bids for Wind and Solar Projects SUNEDISON INC: Three Affiliates' Voluntary Chapter 11 Case Summary SYSTEM SOLDING: Names James Yan as Counsel TAYLOR BEAN: PwC Fights $5.6-Bil. Fraud Trial Over Collapse TIAT CORPORATION: Disclosure Statement Hearing Set for Aug. 24 TOBIN'S RECOVERY: Disclosures OK'd; Plan Hearing Set for Sept. 1 TOTAL COMM: Seeks Authorization to Use Cash Collateral TRACK GROUP: Incurs $1.78 Million Net Loss in Third Quarter TRAVELPORT WORLDWIDE: May Issue 8.9M Shares Under Incentive Plan TRINITY 83: Wants to Use Colfin's Cash Collateral TXU CORP: 2014 Bank Debt Trades at 67% Off TXU CORP: 2017 Bank Debt Trades at 67% Off U.S. STEEL: Comments on Essar-Led Consortium Communication UCI INTERNATIONAL: Taps Ernst & Young as Tax Advisor VALEANT PHARMACEUTICAL: Amendment No Impact on Moody's B2 CFR VALEANT PHARMACEUTICALS: Incurs $302-Mil. Net Loss in 2nd Quarter VYCOR MEDICAL: Fountainhead Owns 69.68% of Series D Shares VYCOR MEDICAL: Incurs $305,000 Net Loss in Second Quarter VYCOR MEDICAL: Peter C. Zachariou Holds 25.7% of Series D Shares WAFERGEN BIO-SYSTEMS: Reports Results for Second Quarter 2016 WALL STREET SYSTEMS: Moody's Assigns B2 Corp. Family Rating WANK ADAMS: Hires Lewis Brisbois as Special Litigation Counsel WAVE SYSTEMS: Hires Baker & Hostetler as Corporate Counsel WHITING PETROLEUM: To Swap Senior Notes for Common Shares WILLARD BLANKENSHIP: Kletchko, Unsecured Claims to Get $286,000 WINDMILL RUN: Hires Holthouse Carlin as Tax Advisor WSB & ASSOCIATES: Unsecured Creditors to Recoup 1% of Claims X-WING AVIATION: Disclosures OK'd; Plan Hearing Set for Sept. 15 YH LIMITED: Chapter 15 Recognition Hearing Set for September 7 [*] IRS Adopts New Audit Rule to Limit Tax Discharges [^] BOOK REVIEW: The First Junk Bond ********* 22ND CENTURY: Incurs $2.90 Million Net Loss in Second Quarter ------------------------------------------------------------- 22nd Century Group, Inc., filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $2.90 million on $2.82 million of revenue for the three months ended June 30, 2016, compared to a net loss of $1.28 million on $2.30 million of revenue for the three months ended June 30, 2015. For the six months ended June 30, 2016, the Company reported a net loss of $6.15 million on $5.84 million of revenue compared to a net loss of $5.40 million on $2.92 million of revenue for the same period last year. As of June 30, 2016, 22nd Century had $17.7 million in total assets, $3.72 million in total liabilities, and $13.7 million in total shareholders' equity. As of June 30, 2016, the Company had positive working capital of approximately $3.51 million compared to positive working capital of approximately $3.99 million at Dec. 31, 2015, a decrease of approximately $0.48 million. The decrease in the Company's working capital position was mainly a result of the net proceeds received from a February 2016 registered direct offering of approximately $5.10 million, offset by cash used in our operating activities of approximately $5.94 million. In July 2016 the Company raised $4.7 million of net proceeds in a registered direct offering of units. A full-text copy of the Form 10-Q is available for free at: https://is.gd/vpRiir About 22nd Century Clarence, New York-based 22nd Century Group, Inc., through its wholly-owned subsidiary, 22nd Century Ltd, is a plant biotechnology company using technology that allows for the level of nicotine and other nicotinic alkaloids (e.g., nornicotine, anatabine and anabasine) in tobacco plants to be decreased or increased through genetic engineering and plant breeding. 22nd Century reported a net loss of $11.03 million on $8.52 million of revenue for the year ended Dec. 31, 2015, compared to a net loss of $15.59 million on $528,991 of revenue for the year ended Dec. 31, 2014. 40 CHESAPEAKE: Case Summary & 6 Unsecured Creditors --------------------------------------------------- Debtor: 40 Chesapeake St. SE, LLC 1508 18th St. SE, Apt 2. Washington, DC 20020 Case No.: 16-00405 Nature of Business: Single Asset Real Estate Chapter 11 Petition Date: August 11, 2016 Court: United States Bankruptcy Court District of Columbia (Washington, D.C.) Judge: Hon. Martin S. Teel, Jr. Debtor's Counsel: William C. Johnson, Jr., Esq. LAW OFFICES OF WILLIAM C. JOHNSON, JR. 1101 15th St. NW, Suite 910 Washington, DC 20005 Tel: (202) 525-2958 Fax: (202) 525-2961 E-mail: wjohnson@dcmdconsumerlaw.com wcjjatty@yahoo.com Total Assets: $1.27 million Total Liabilities: $943,649 The petition was signed by Kevin Green, president. A copy of the Debtor's list of six unsecured creditors is available for free at http://bankrupt.com/misc/dcb16-00405.pdf 500 NORTH AVENUE: Can Use Cash Collateral Until Oct. 31 ------------------------------------------------------- Judge Julie A. Manning of the U.S. Bankruptcy Court for the District of Connecticut authorized 500 North Avenue, LLC, to use the cash collateral of Manual Moutinho, Trustee for Mark IV Construction Co Inc. 401(k) Savings Plan, on an interim basis, from Aug. 1, 2016 through Oct. 31,2016. Manual Moutinho has a first and second priority secured claim against the Debtor's real property, located at 1794-1796 Barnum Avenue, Bridgeport, Connecticut, and the rents arising from the property. Judge Manning acknowledged that the use of cash collateral on an interim basis pending a final hearing is necessary to prevent immediate and irreparable harm to the Debtor’s estate. She further acknowledged that without authorization to use cash collateral, the Debtor’s ability to sustain its operations and meet its current necessary and integral business obligations will be impossible. The approved Budget provides for total monthly expenses in the amount of $4,371.34 for the months of August and September, and $5,021.43 for the month of October. Judge Manning granted Manual Moutinho replacement and/or substitute liens in post-petition collateral, of the same validity, extent and priority that Manual Moutinho possessed as to said liens on the Petition Date. A further hearing on the Debtor's Motion is scheduled on Oct. 26, 2016 at 11:00 a.m. A full-text copy of the Order, dated August 3, 2016, is available at https://is.gd/S5OCE4 About 500 North Avenue 500 North Avenue, LLC and Long Brook Stattion, LLC filed chapter 11 petitions (Bankr. D. Conn. Case Nos. 14-31094 and 14-31095) on June 6, 2014. The petitions were signed by Joseph Regensburger, member. The Debtors are represented by Douglas S. Skalka, Esq., at Neubert, Pepe, and Monteith, P.C. The case is assigned to Judge Julie A. Manning. 500 North Avenue, LLC estimated assets at $1 million to $10 million and liabilities at $10 million to $50 million at the time of the filing. Long Brook Station, LLC estimated assets at $500,000 to $1 million and liabilities at $1 million to $10 million at the time of the filing. ACMD HOLDING: 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 ACMD Holding Corp. ACMD Holding Corp. sought protection under Chapter 11 of the Bankruptcy Code (Bankr. E.D.N.Y. Case No. 16-72994) on July 5, 2016. The Debtor is represented by Anthony J Gallo, Esq., at AJ Gallo Associates, P.C. ADAMIS PHARMACEUTICALS: Sabby Mgt Reports 7.7% Stake ---------------------------------------------------- In a Schedule 13G filed with the Securities and Exchange Commission: (i) Sabby Healthcare Master Fund, Ltd. and Sabby Volatility Master Fund, Ltd. beneficially own 969,300 and 646,200 shares of Adamis Pharmaceuticals Corporation common stock, respectively, representing approximately 4.64% and 3.09% of the Common Stock, respectively; and (ii) Sabby Management, LLC and Hal Mintz each beneficially own 1,615,500 shares of the Common Stock, representing approximately 7.73% of the Common Stock. Sabby Management, LLC and Hal Mintz do not directly own any shares of Common Stock, but each indirectly owns 1,615,500 shares of Common Stock. Sabby Management, LLC, a Delaware limited liability company, indirectly owns 1,615,500 shares of Common Stock because it serves as the investment manager of Sabby Healthcare Master Fund, Ltd. and Sabby Volatility Warrant Master Fund, Ltd., Cayman Islands companies. Mr. Mintz indirectly owns 1,615,500 shares of Common Stock in his capacity as manager of Sabby Management, LLC. A full-text copy of the regulatory filing is available at: https://is.gd/CoJcVu 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. AKO INTERIOR: Unsecureds to Get 30% Under 6th Amended Plan ---------------------------------------------------------- General unsecured creditors of AKO Interior LLC are slated to receive on a pro rata basis at confirmation 30% of their allowed claims, according to the sixth iteration of the disclosure statement detailing the company's Chapter 11 plan of reorganization. Dividends will be paid in 60 monthly installment payments. General unsecured claims total about $113,780 and are grouped in Class I under the Plan. Class I consists of these claims: Wells Fargo Bank, NA. is $18,918.91; Luxe Media Group is $5,005.58; Bank of America is $18,595.72; American Express Bank, FSB is $21,768.25; American Express Bank, F SB is $1,037.02; Advanta Credit Cards is $15,274.44; Capital One Bank (USA), NA is $5,703.79; Citi Business Card is $5,857.88; Citi Business Card is $11,933.36; Home Depot Credit Service is $6,982.25; Staples Credit Plan is $2,703.05 A copy of the disclosure statement is available for free at: http://bankrupt.com/misc/nyeb15-42216-0093.pdf About AKO Interior AKO Interior LLC filed a Chapter 11 Petition (Bankr. E.D.N.Y. Case No. 15-42216) on May 13, 2015, and is represented by Alla Kachan, Esq. -- alla@kachanlaw.com -- at The Law Offices of Alla Kachan, P.C. ALL PHASE: Cash Use for $172K in Expenses Until Aug. 31 Approved ---------------------------------------------------------------- Judge Julie A. Manning of the U.S. Bankruptcy Court for the District of Connecticut authorized All Phase Steel Works, LLC, to use cash collateral until Aug. 31, 2016. The Debtor is indebted to, among others: (1) The Internal Revenue Service, in the amount of $895,000. The IRS file liens pre-petition on the Debtor's assets recorded at the Connecticut Secretary of State's office for withholding taxes and other federal taxes owed. (2) CapCall LLC, in the amount of $294,067. The indebtedness is secured by liens and/or security interests in substantially all of the Debtor's assets. (3) Superior Capital, in the amount of $69,147.75. The indebtedness is secured by liens and/or security interests in substantially all of the Debtor's assets. (4) Metal Perreault Inc., in the amount of $225,000. The indebtedness is secured by a security interest in certain specific account receivables of the Debtor. The Debtor represented that it has an immediate and continuing need for the use of the pre-petition collateral and the proceeds constituting cash collateral, in order to continue the operation of, and avoid immediate and irreparable harm to its business, and to maintain and preserve going concern value. The approved Budget for the month of August, provides for total expenses in the amount of $172,500. Judge Manning granted the Internal Revenue Service and CapCall, LLC adequate protection in the form of: (1) Post-petition claims against the Debtor's estate, which shall have priority in payment over any other indebtedness and/or obligations and over all administrative expenses or charges against property, subject only to Carve-Out. (2) An enforceable and perfected replacement lien and/or security interest in the Debtor's post-petition assets, equivalent in nature, priority and extent to the liens and/or security interests of the IRS and CapCall LLC, in the Pre-Petition Collateral and its proceeds and products, subject to the Carve-Out. Judge Manning granted surety Allegheny Casualty Co., adequate protection for its interest in undisbursed contract funds from certain Bonded Projects. Judge Manning acknowledged that the Debtor has limited its use of bonded contract funds received from the Bonded Projects to pay laborers, subcontractors and vendors for their post-petition labor, services and materials provided to each Project, and has used excess funds to pay the overhead costs directly attributable to the costs incurred in completing its work for that Project with the balance to the Debtor. Judge Manning ordered the Debtor to continue using the bonded contract funds and afforded Allegheny Casualty the right to monitor the Debtor's compliance by reasonable access to the Debtor's books and records. The Debtor previously entered into one joint check agreement with one supplier, Bushwick Metals LLC, requiring that to the extent that contract funds are owed to the Debtor as a result of materials or services provided to the Masonicare Project by Bushwick Metals LLC, payment to Debtor will issue in the form of a joint check made payable to Debtor and Bushwick Metals LLC. Judge Manning authorized the Debtor to discharge its obligation to afford adequate protection to Allegheny Casualty in regard to the undisbursed contract funds from the Masonicare Project to the extent of all parties' continued compliance with the Joint Check Agreement. She ordered the Debtor to enter into such other or further joint check agreements associated with contract funds owed to Debtor as a result of labor, materials or services provided to the Project by other subcontractor or vendors. Judge Manning held that the following limited expenses of the Debtor's estate will be deemed to have a lien prior in right to satisfaction from the Debtor's property generated post-petition, including cash collateral, which lien will be senior to the replacement liens or any other liens: (a) the allowed administrative claims of attorneys and other professionals retained by the Debtor in the Case in the aggregate amount of $35,000.00; (b) amounts payable to pursuant to 28 U.S.C. Section 1930(a)(6); and (c) any wages owed for the period covered by the Court's Order. A further hearing on the continued use of cash collateral is scheduled on Aug. 31, 2016 at 12:00 p.m. The deadline for the filing of objections to the continued use of cash collateral is set on Aug. 26, 2016 at 4:00 p.m. A full-text copy of the Order, dated Aug. 3, 2016, is available at https://is.gd/9pBB9z About All Phase Steel Works All Phase Steel Works, LLC filed a chapter 11 petition (Bankr. D. Conn. Case No. 16-50257) on Feb. 23, 2016. The petition was signed by Paul J. Pinto, member/manager. The Debtor is represented by James M. Nugent, Esq., at Harlow, Adams & Friedman, P.C. The case is assigned to Judge Julie A. Manning. The Debtor disclosed total assets at $2.65 million and total liabilities at $4.08 million at the time of the filing. ALLWAYS EAST: Wants to Obtain DIP Loan From Merchants Automotive ---------------------------------------------------------------- Allways East Transportation Inc. asks the U.S. Bankruptcy Court for the Southern District of New York for authorization to incur post-petition secured indebtedness from Merchants Automotive Group, Inc. The Debtor relates that its Dutchess County contract currently represents approximately 30% of its current revenues and is by far its most profitable contract, throwing off net profit in excess of $1,000,000 per year. The Debtor further relates that this contract alone makes the Debtor cumulatively profitable and will form the basis for its reorganization plan. The Debtor tells the Court that Dutchess County has requested that the Debtor obtain its performance bond on or before August 15, 2016. The Debtor further tells the Court that the borrowings will permit it to obtain the performance bond needed for the renewal of the Duchess County contract. The Debtor projects total costs of services in the amount of $4,587,504 for the Duchess County contract. Merchants Automotive Group leases out vehicles to the Debtor for exclusive use in the Dutchess business. The Debtor contends that Merchants Automotive Group expressed its willingness to assist the Debtor in obtaining a performance bond on the Debtor’s behalf in the form of issuance of a letter of credit needed to secure the Debtor’s performance under the required bond, since the Debtor has no ability on its own to obtain a letter of credit. The Debtor says that it has secured Endurance Insurance, a surety company willing to issue the Debtor a performance bond for Dutchess County, provided the Debtor obtains a $300,000 letter of credit, and obtains Court authority to enter into documentation and agreements that are routinely required by Endurance Insurance to issue the bond. The DIP Loan contains, among others, the following relevant terms: (a) Borrowers: Allways East Transportation, Inc. and Allways North Transportation, Inc. (b) Type/Amount: A line of credit not to exceed the maximum principal amount of $325,000 and a letter of credit facility in the maximum amount of $300,000. (c) Availability/Purpose: The DIP Loan shall be made available to the Borrowers in accordance with the DIP Documentation for the payment of administrative expense claims, cure costs and attorneys’ fees associated with the Lease, for the payment of bank fees, lender’s attorneys’ fees and costs associated with the DIP Loan and obtaining a letter of credit, and for other costs and expenses necessary for the reorganization of the Debtor. (d) Closing Date: On a date agreed to by the parties within 30 days of the Bankruptcy Court’s entry of an order approving the DIP Loan, the parties shall execute an promissory note, security agreement, and other documentation to the satisfaction of Merchants evidencing the transaction. (e) Maturity: The DIP Loan shall be payable in full on the first day of the 24th month following the Closing Date. (f) Interest Rate: The DIP Loan shall accrue interest at the rate of five percent per annum. (g) Collateral: As collateral for the DIP Loan, Merchants Automotive Group will be granted: (i) a perfected first priority lien, senior to all other interests except for an existing disputed third-party lien, the value of which does not exceed $88,000, in the Borrowers’ accounts receivable existing as of the Petition Date or thereafter acquired and the proceeds therefrom; (ii) a perfected first priority lien on at least 92 presently unencumbered vehicles presently owned by the Borrowers; and (iii) a perfected first priority lien on all vehicles presently subject to any Lease Schedule as the Debtor pays off its obligations under the Lease with respect to such vehicles. (h) Adequate Protection and Use of Cash Collateral: The Borrowers shall ensure that the value of current, non-delinquent, accounts receivable is at all times an amount greater than 75% of the balance remaining on the DIP Loan. If at any point prior to the Maturity Date, the value of current, non-delinquent, accounts receivable drops below this threshold, the Borrowers shall make an additional payment of principal to reduce the amount due under the DIP Loan until this condition is satisfied. The Debtor’s use of cash collateral shall be permitted during the Bankruptcy Case provided the Debtor maintains an account receivable threshold of at least 75% of the balance remaining on the DIP Loan. The Borrowers shall provide Merchants Automotive Group with monthly reports of their accounts receivable to ensure compliance with this provision. A full-text copy of the Debtor's Motion, dated August 9, 2016, is available at https://is.gd/VE6fF1 A full-text copy of the DIP Loan Term Sheet, dated August 9, 2016, is available at https://is.gd/rzCQVY A full-text copy of the Debtor's Projection for the Duchess County contract, dated August 9, 2016, is available at https://is.gd/g4o72B About Allways East Transportation, Inc. Headquartered in Yonkers, New York, Allways East Transportation Inc. filed for Chapter 11 bankruptcy protection (Bankr. S.D.N.Y. Case No. 16-22589) on April 28, 2016, estimating its assets and liabilities at between $1 million and $10 million each. The petition was signed by Marlaina Koller, vice president. Judge Robert D. Drain presides over the case. Erica Feynman Aisner, Esq., and Julie Cvek Curley, Esq., at Delbello Donnellan Weingarten Wise & Wiederkehr, LLP, serves as the Debtor's bankruptcy counsel. The Debtor did not include a list of its largest unsecured creditors when it filed the petition. AMERICAN CONTAINER: Wants to Use CM Sterling Cash Collateral ------------------------------------------------------------ American Container, Inc., asks the U.S. Bankruptcy Court for the Western District of Tennessee for authorization to obtain credit and use the cash collateral of CM Sterling, LLC. The Debtor is indebted to CM Sterling in the amount of $173,334. The Debtor relates that CM Sterling currently holds a valid perfected security interest in substantially all of the personal property of the Debtor, including accounts receivable. The Debtor further relates that D&D Packaging, Inc. has a junior security interest in substantially the same assets. The Debtor tells the Court that it will use cash collateral to pay ordinary and necessary expenses in connection with administering the Chapter 11 case. The Debtor's proposed Budget covers the period beginning July 15, 2016 and ending Oct. 15, 2016. The Budget provides for total expenses in the amount of $7,200 for the periods July 15, 2016 to Aug. 15, 2016, and Aug. 15, 2016 to Sept. 15, 2016, and $12,850 for the period Sept. 15, 2016 to Oct. 15, 2016. The Debtor proposes to grant the Bank adequate protection in the form of a first lien on the Debtor's personal property of any kind and nature whatsoever, including all of the prepetition collateral and any unused or unearned retainers, deposits or prepaid items, and a lien on all real property of the Debtor subject to all existing, valid prior liens. A full-text copy of the Debtor's Motion, dated Aug. 3, 2016, is available at https://is.gd/Van3P8 A full-text copy of the Debtor's proposed Budget, dated Aug. 3, 2016, is available at https://is.gd/fST7CJ About American Container, Inc. American Container, Inc. filed a chapter 11 petition (Bankr. W.D. Tenn. Case No. 16-26399) on July 15, 2016. The petition was signed by Steve Harris, president. The Debtor is represented by Russel W. Savory, Esq., at Beard & Savory, PLLC. The case is assigned to Judge Paulette J. Delk. The Debtor disclosed total assets at $2.55 million and total debts at $4.30 million at the time of the filing. ARMONK SNACK: Seeks March 2017 Plan Filing Deadline Extension ------------------------------------------------------------- Armonk Snack Mart, Inc., asks the U.S. Bankruptcy Court for the Southern District of New York to extend until March 31, 2017, its exclusive period within which to file a Chapter 11 Small Business Plan and solicit acceptances of such plan, and the time within which to file a Plan and to solicit acceptances. The Debtor relates that it has filed a Chapter 11 plan but such plan should be amended depending upon the status of the Lease and claims against the Landlord and Gas Land. The Debtor says its business is impacted by factors over which it has no control, such as the weather and oil prices. Its ability to formulate a plan is impacted by the Appeals, the status of the Lease and other various litigations. Its ability to reorganize will be affected by the dispositions of the litigations. The Debtor adds that it has taken appeals of three orders entered by the Court pertaining to the Lease, namely: (a) the Order denying the assumption motion, (b) the Order remanding the Landlord Tenant Action to the North Castle Justice Court, and (c) the Order remanding the Foreclosure Action to the New York Supreme Court. The appeals have not been fully perfected and are not expected to be fully perfected until the fall of 2016. Counsel for the Debtor: Anne J. Penachio, Esq. Penachio Malara LLP 235 Main Street, Sixth Floor White Plains, NY 10601 Tel: (914) 946-2889 Fax: (914) 946-2882 Email: apenachio@pmlawllp.com About Armonk Snack Mart Armonk Snack Mart, Inc. owns and manages a gasoline service station and convenience store located at 360 Main Street, Armonk, New York. The Debtor sought protection under Chapter 11 of the Bankruptcy Code (Bankr. S.D.N.Y. Case No. 15-22375) on March 24, 2015. The Debtor did not disclose its assets and liabilities at the time of its filing. BC EQUITY: Moody's Assigns B3 Corporate Family Rating ----------------------------------------------------- Moody's Investors Service assigned a first-time B3 Corporate Family Rating and a B3-PD Probability of Default Rating ("PDR") to BC Equity Ventures LLC ("Bay Club"). Moody's also assigned Ba3 ratings to the company's proposed $20 million super-priority revolving credit facility and $75 million asset sale bridge loan, and a B3 rating to the proposed $350 million senior secured term loan. The rating outlook is stable. Proceeds from the bridge loan and term loan will be used to refinance the company's existing $396 million of debt, fund acquisitions, and pay for fees and expenses. Within six months, the company expects to sell one of its properties and use the proceeds to repay the $75 million bridge loan, fund the redevelopment of that club, and pay related fees, expenses and taxes. Moody's considers all credit metrics on a pro-forma basis for the sale of this property, which Bay Club is under a binding contract to sell at a previously agreed upon price within a year. Moody's assigned the following ratings to BC Equity Ventures LLC: -- Corporate Family Rating, assigned at B3 -- Probability of Default Rating, assigned at B3-PD -- $20 million super priority revolver expiring 2021, assigned Ba3 (LGD1) -- $75 million bridge loan due 2017, assigned Ba3 (LGD1) -- $350 million senior secured term loan due 2022, assigned B3 (LGD4) -- Stable outlook RATINGS RATIONALE Bay Club's B3 CFR is constrained by the company's small size, with less than $200 million in revenues generated from 20 clubs, and its high geographic concentration in coastal California. The rating also reflects Bay Club's high leverage in the upper-5 times (Moody's-adjusted as of Q1 2016, pro-forma for the repayment of the bridge loan), acquisitive growth strategy, and typical risks associated with private equity ownership. Nevertheless, the rating benefits from Bay Club's high operating margins, sticky customer base, track record of stable performance, and good near-term liquidity. Moody's expects the company to have good liquidity in the next 12-15 months based on $20-30 million of projected annual free cash flow, full revolver availability and a covenant-lite debt structure. The Ba3 rating of the proposed revolver reflects its first-priority interest in any proceeds from the sale of the credit agreement collateral (other than the aforementioned property to be sold), as well as subsidiary guarantees. The bridge loan, which is also rated Ba3, is ranked below the super-priority revolver but ahead of the term loan in the waterfall of liabilities, reflecting its payment priority with respect to the property to be sold and its near-term maturity. The B3 rating of the term loan reflects its predominance in the capital structure and its second-priority interest in substantially all assets of the company and its subsidiaries. All instruments will benefit from guarantees of a parent holding company and all of its domestic wholly-owned subsidiaries. The stable outlook reflects Moody's expectations that Bay Club will modestly grow revenue and EBITDA and maintain good liquidity. In addition, the outlook assumes the bridge loan will be repaid within one year and that proceeds will be used as outlined in the refinancing transaction. The ratings could be downgraded if liquidity deteriorates for any reason, or operating performance declines such that debt/EBITDA approaches 7 times or EBITA/interest expense declines to 1.25 times. A ratings upgrade would require an increase in the company's scale and greater geographic diversity. The ratings could be upgraded if the company sustains solid earnings growth such that debt/EBITDA approaches 4.5 times and EBITA/interest expense is above 2 times, while maintaining good liquidity. The principal methodology used in these ratings was Business and Consumer Service Industry published in December 2014. BC Equity Ventures LLC ("Bay Club") is a membership-based hospitality company that operates 20 clubs in the San Francisco, Los Angeles and San Diego areas of California. The company's clubs offer amenities that combine the elements of fitness, sports, hospitality and family. Bay Club was acquired in 2014 by York Capital Management and reported revenues of approximately $185 million in 2015. BCD ACQUISITION: S&P Assigns 'B' CCR & Rates $670MM Notes 'B' ------------------------------------------------------------- S&P Global Ratings said that it has assigned its 'B' corporate credit rating to Mt. Pleasant, Texas-based BCD Acquisition Inc. (Big Tex). The company is the indirect parent of Big Tex Trailer Manufacturing Inc. and other affiliated companies involved in the production, distribution, and aftermarket servicing of utility, cargo, and other trailers. At the same time, S&P assigned its 'B' issue-level rating and '4' recovery rating to the company's proposed $670 million senior secured notes. The '4' recovery rating indicates S&P's expectation for average (30%-50%; upper half of the range) recovery in the event of a payment default. The proposed $100 million asset-based lending (ABL) facility is unrated. "Our ratings on Big Tex reflect the company's exposure to cyclical end markets as more than half of its sales are to customers in the agricultural, construction, and automotive industries," said S&P Global credit analyst James Siahaan. The demand for trailers can ebb during cyclical troughs when customers may opt to extend the useful life of their existing units and delay new orders. This weakness is partially offset by Big Tex's leading position as a manufacturer and distributor of professional- and consumer-grade trailers, parts, and accessories in North America, a position which it will fortify with the proposed acquisition of ATW. The company intends to use the proceeds from the senior secured notes, along with an incremental $131 million equity contribution, to finance the merger and refinance or repay its existing debt (including a $285 million promissory note). Big Tex is also issuing a $100 million unrated ABL facility, which will be undrawn at the close of the transaction. The stable outlook on Big Tex reflects S&P's expectation that the company's leading market position, along with the realization of the expected procurement synergies from its acquisition of ATW, should support a solid operating performance and an adjusted debt-to-EBITDA ratio that is either in -- or favorably comparable to -- the 5x-6x range. The company's good relationships with its dealers and distribution outlets and the low cost of its products compared with its end customers' total project costs should support its operating performance, though the demand for Big Tex's trailers may ebb during cyclical troughs. Given Big Tex's ownership by financial sponsor Bain Capital, the company may potentially provide debt-funded returns to its equity holders. S&P could lower its ratings on Big Tex if a significant decline in its earnings or a large debt-financed acquisition or shareholder return causes its total debt-to-EBITDA metric to exceed 6x without clear prospects for recovery. This could occur if the company faces volume declines from cancelled construction projects, lower truck sales, reduced consumer trailer sales due to lower sales of all-terrain vehicles and other discretionary items, the loss of a key big box retail customer, or an inability to effectively manage its cost structure. Based on S&P's downside scenario, this could occur if Big Tex's operating margins weaken by more than 200 basis points (bps). "Given our current assessment of Bain Capital's financial policies, we view an upgrade over the next 12 months as unlikely. However, we could raise our ratings on Big Tex by one notch if the company commits to -- and demonstrates a track record of -- operating with a debt-to-EBITDA metric of 4x-5x, a FFO-to-debt ratio of near 20%, and a consistently positive free cash flow-to-debt ratio with no prospects for near-term material deterioration. Any additional upgrades would likely depend on whether the company can meaningfully strengthen its business risk profile through the continued enhancement of its market position and product offerings and improved pricing and operating efficiencies," S&P said. BELK INC: Bank Debt Trades at 13% Off ------------------------------------- Participations in a syndicated loan under BELK, Inc is a borrower traded in the secondary market at 87.40 cents-on-the-dollar during the week ended Friday, July 29, 2016, according to data compiled by LSTA/Thomson Reuters MTM Pricing. This represents an increase of 1.50 percentage points from the previous week. BELK, Inc pays 450 basis points above LIBOR to borrow under the $1.5 billion facility. The bank loan matures on Nov. 19, 2022 and carries Moody's B2 rating and Standard & Poor's B+ rating. The loan is one of the biggest gainers and losers among 247 widely quoted syndicated loans with five or more bids in secondary trading for the week ended July 29. BINDER & BINDER: Unsecured Creditors to Get 6.6% to 8.6% Under Plan ------------------------------------------------------------------- Binder & Binder - The National Social Security filed with the U.S. Bankruptcy Court for the Southern District of New York a Chapter 11 plan and disclosure statement to facilitate the orderly adjudication of all or substantially all of the Debtors' existing Social Security Administration Cases and Department of Veterans Affairs Cases over a three-year period and enable the Debtors to monetize their other assets and fund the distributions to holders of allowed claims. Class 5 - General Unsecured Claims are impaired and will receive their pro rata share of (a) GUC Distribution Fund in installments totaling $800,000 in the aggregate, and (b) the Net GUC Excess Cash. The estimated allowed amount of Class 5 Claims is $9.3 million to $12.0 million. Holders of Class 5 Claims are anticipated to recover 6.6% to 8.6% of their allowed claims. Stellus, which holds a $17,025,861 unsecured claim, is impaired and is estimated to recover 4.6% of its allowed claim. The Debtors propose a Sept. 6 Voting Deadline and a Sept. 13 Plan Confirmation Hearing. A full-text copy of the Disclosure Statement dated Aug. 1, 2016, is available at http://bankrupt.com/misc/nysb14-23728-630.pdf About Binder & Binder Founded in 1979 by brothers Harry and Charles Binder, Binder & Binder is the nation's largest provider of social security disability and veterans' benefits advocacy services, with operating scale and efficiencies unrivaled by its competitors in the highly fragmented advocacy market. The Company has more than 950 employees in 35 offices across the United States. In 2010, H.I.G. Capital, LLC, acquired a controlling equity interest in the Company. Since 1979, the Company has handled over 300,000 disability cases under programs operated by the SSA and the VA. Binder & Binder - The National Social Security Disability Advocates (NY), LLC, et al., sought Chapter 11 bankruptcy protection (Bankr. S.D.N.Y. Lead Case No. 14-23728) in White Plains, New York on Dec.18, 2014. The cases are assigned to Judge Robert D. Drain. The Debtors have tapped Kenneth A. Rosen, Cassandra Porter, Esq., and Nicholas B. Vislocky, Esq., at Lowenstein Sandler as counsel. The Debtors have engaged Development Specialists, Inc., as financial advisor, and BMC Group Inc. as claims and notice agent. The U.S. Trustee appointed an Official Committee of Unsecured Creditors in the Debtors' cases. The Committee is now comprised of (i) United Service Workers Union, Local 455 IUJAT & Related Funds, (ii) T&G Industries, Inc., (iii) WB Mason Co., and (iv) Teaktronics, Inc. The Committee tapped Klestadt Winters Jureller Southard & Stevens, LLP, as attorneys. * * * The Debtors originally arranged from existing lenders DIP financing of $26 million, which provided for the payment in full, or roll-up, of the $23 million of prepetition indebtedness and an additional commitment of up to $3 million to fund the Debtors' operations during the Chapter 11 cases. On Jan. 26, 2015, the Initial DIP Lenders issued a notice that events of default had occurred. In March 2015, the Debtors won approval to obtain a new $6 million term loan from Stellus Capital Investment Corporation secured by a first-priority priming lien on all of the Debtors' assets. On Oct. 29, 2015, the Court entered an order granting Stellus' motion for termination of the Debtors' exclusive plan filing and solicitation periods pursuant to Section 1121(d) of the Bankruptcy Code. On Nov. 18, 2015, Stellus Capital and the Creditors Committee filed a Joint Plan of Liquidation for the Debtors, and on Jan. 15, 2016, they filed a First Amended Joint Plan of Reorganization. The original hearing on the Proponents' Disclosure Statement has been further adjourned for April 22, 2016. BREITBURN ENERGY: Seeks Exclusivity Extension Thru March 11 ----------------------------------------------------------- BankruptcyData.com reported that Breitburn Energy Partners filed with the U.S. Bankruptcy Court a motion to extend the exclusive period during which the Company can file a Chapter 11 plan and solicit acceptances thereof through and including March 11, 2017 and May 10, 2017, respectively. The motion explains, "The Debtors have responded to the exigent demands of these chapter 11 cases and have worked diligently with the Creditors' Committee and their first and second lienholders to advance the reorganization process. The Debtors should be afforded a full, fair, and reasonable opportunity to negotiate, propose, file, and solicit acceptances of a chapter 11 plan. This first requested extensions of the Exclusive Periods are warranted and necessary to afford the Debtors a meaningful opportunity to pursue the chapter 11 reorganization process and build a consensus among their economic stakeholders, all as contemplated by chapter 11 of the Bankruptcy Code." The Court scheduled an August 23, 2016 hearing on the motion, with objections due by August 16, 2016. About Breitburn Energy Breitburn Energy Partners LP and 21 of its affiliates filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No. 16-11390) on May 15, 2016, listing assets of $4.71 billion and liabilities of $3.41 billion. Breitburn Energy et al., are an independent oil and gas partnership engaged in the acquisition, exploitation and development of oil and natural gas properties, Midstream Assets, and a combination of ethane, propane, butane and natural gasolines that when removed from natural gas become liquid under various levels of higher pressure and lower temperature, in the United States. The Debtors conduct their operations through Breitburn Parent's wholly-owned subsidiary, Breitburn Operating LP, and BOLP's general partner, Breitburn Operating GP LLC. The Debtors have engaged Weil Gotshal & Manges LLP as counsel, Alvarez & Marsal North America, LLC as financial advisor, Lazard Freres & Co. LLC as investment banker, and Prime Clerk LLC as claims and noticing agent. Curtis, Mallet-Prevost, Colt & Mosle LLP serves as their conflicts counsel. The cases are pending before the Honorable Stuart M. Bernstein. The U.S. trustee for Region 2 appointed three creditors of Breitburn Energy Partners LP and its affiliates to serve on the official committee of unsecured creditors. The committee retained Milbank, Tweed, Hadley & McCloy LLP as its legal counsel. CANCER GENETICS: Incurs $4.02 Million Net Loss in Second Quarter ---------------------------------------------------------------- Cancer Genetics, Inc., filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $4.02 million on $7 million of revenue for the three months ended June 30, 2016, compared to a net loss of $4.98 million on $4.18 million of revenue for the three months ended June 30, 2015. For the six months ended June 30, 2015, the Company reported a net loss of $9.28 million on $13.06 million of revenue compared to a net loss of $9.25 million on $8.55 million of revenue for the same period last year. As of June 30, 2016, Cancer Genetics had $44.2 million in total assets, $15.07 million in total liabilities and $29.15 million in total stockholders' equity. "We believe that our current cash will support operations for at least the next 6 months. We are actively discussing opportunities for additional equity or debt financing, and we are taking steps to improve our operating cash flow. We can provide no assurances that our current actions will be successful or that any additional sources of financing will be available to us on favorable terms, if at all, when needed. Our forecast of the period of time through which our current financial resources will be adequate to support our operations and the costs to support our general and administrative, sales and marketing and research and development activities are forward-looking statements and involve risks and uncertainties. "The continuation of the Company as a going concern is dependent on the ability of the Company to obtain necessary debt and/or equity financing to continue operations. These interim consolidated financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern," the Company said in the report. A full-text copy of the Form 10-Q is available for free at: https://is.gd/lbOWKq About Cancer Genetics Rutherford, N.J.-based Cancer Genetics, Inc., is an early-stage diagnostics company focused on developing and commercializing proprietary genomic tests and services to improve and personalize the diagnosis, prognosis and response to treatment (theranosis) of cancer. Cancer Genetics reported a net loss of $20.2 million on $18.0 million of revenue for the year ended Dec. 31, 2015, compared to a net loss of $16.6 million on $10.2 million of revenue for the year ended Dec. 31, 2014. CASPIAN SERVICES: Extends CEO's Term by 3 Additional Years ---------------------------------------------------------- Caspian Services, Inc., entered into Addendum #2 to the Employment Agreement of Alexey Kotov, dated Aug. 4, 2016. Mr. Kotov is the Company's chief executive officer and president and serves on the Company's board of directors. Subject to approval by the Company's board of directors, Addendum #2 extends the term of Mr. Kotov's existing employment agreement with the Company for a term of three years commencing on Aug. 1, 2016. All other terms and conditions of Mr. Kotov's existing employment agreement are unchanged, remain in full force and effect and will continue through the term of Addendum #2. About Caspian Services Headquartered in Salt Lake City, Caspian Services, Inc., was incorporated under the laws of the state of Nevada on July 14, 1998. Since February 2002 the Company has concentrated its business efforts to provide diversified oilfield services to the oil and gas industry in western Kazakhstan and the Caspian Sea, including providing a fleet of vessels, onshore, transition zone and marine seismic data acquisition and processing services and a marine supply and support base in the port of Bautino, in Bautino Bay, Kazakhstan. Caspian reported a net loss of $33.2 million on $16.4 million of total revenues for the year ended Sept. 30, 2015, compared to a net loss of $18.8 million on $29.9 million of total revenues for the year ended Sept. 30, 2014. As of March 31, 2016, the Company had $33.38 million in total assets, $114.33 million in total liabilities, all current, and a total deficit of $80.94 million. Haynie & Company, P.C., in Salt Lake City, Utah, the Company's independent accounting firm, included a "going concern" qualification in its report on the consolidated financial statements for the year ended Sept. 30, 2015. CHICAGO: Schools Budget Uses Pension Overhaul to Close Gap ---------------------------------------------------------- Elizabeth Campbell, writing for Bloomberg News, reported that Chicago school officials presented a budget that relies on the state of Illinois passing an overhaul of its underfunded pension system and assumes that the teachers' union will agree to pay more into their retirement funds. According to the report, the $5.4 billion operating budget for the fiscal year that began July 1 is more than $230 million smaller than last year's spending plan, district officials said. The plan relies on the state providing the district with an additional $215 million for its pension bills, which lawmakers and Governor Bruce Rauner have agreed to shell out only if the state comes up with a plan to restructure its own retirement system, the report related. "The fiscal '17 Chicago public schools' budget is balanced without gimmicks or without operational borrowing," the report said, citing Forrest Claypool, chief executive officer of the school system, as telling reporters. "Today marks the return to financial stability for the coming school year." The report related that the district won some relief from Illinois's stopgap budget. The six-month spending plan approved at the end of June allows Chicago to establish a property tax levy up to $250 million specifically to help cover the teachers' pension fund, the report further related. The retirement system was only 52 percent funded as of June 30, 2015, the report said. The school system also secured $131 million of additional state funding from a so-called equity grant to bolster districts with high concentrations of students in poverty, the report added. CHINA FISHERY: Club Lender Parties Seek Ch. 11 Trustee Appointment ------------------------------------------------------------------ BankruptcyData.com reported that CooperatieveRabobank, Standard Chartered Bank (Hong Kong), China CITIC Bank International and DBS Bank (Hong Kong) (collectively, the "Club Lender Parties") filed with the U.S. Bankruptcy Court a motion for the entry of an order directing the appointment of a Chapter 11 trustee for China the Fishery Group case. The motion explains, "This Motion seeks appointment of a Chapter 11 trustee because it is in the interests of the creditors and other interests of the estate; a natural remedy in a climate where the Debtors and their affiliates cannot publish audited accounts (for over a year) due to a pending forensic accounting investigation and commenced these and three other global insolvency proceedings for the express purpose of stopping a sale that had been ongoing in an effort to repay defaulted debt in excess of $700 million. A Chapter 11 trustee is appropriate in these cases because, among other reasons: The Debtors' creditors lack confidence in management's ability to fairly look out for creditor interests in these cases rather than the Ng family interests that control these companies through their ultimate shareholdings in Debtor N.S. Hong Investment (BVI); The Ng family interests likely conflict with the Debtors' interests due to the extensive intercompany debts between the various debtor entities and non-debtor entities, which are massive and controlled by the same or similar management. The Debtors have halted a sale process of the Debtors' key asset, a Peruvian business, the sale of which would generate proceeds to repay the Club Lender Parties and other creditors; The Debtors have not identified any plan or strategy for moving forward in these cases beyond simply delaying any sale and stretching out creditors for several years while avoiding meaningful independent fiduciary oversight and waiting for the weather to change and the global economy to improve and already in these cases, critical financial creditors have offered to forebear and provide funding to permit these cases to move forward and to enable a liquidity event to occur for the Debtors' main asset; yet, the Debtors have rejected this opportunity, choosing instead to pursue this litigation." 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. Howard B. Kleinberg, Esq., Edward J. LoBello, Esq. and Jil Mazer-Marino, Esq. of Meyer, Suozzi, English & Klein, P.C. serve as legal counsel. The Debtor has tapped Goldin Associates, LLC, as financial advisor and RSR Consulting LLC as restructuring consultant. CHINA FISHERY: Lenders Call for Trustee to Take Over Company ------------------------------------------------------------ Tom Corrigan, writing for The Wall Street Journal Pro Bankruptcy, reported that lenders owed more than $700 million have called for an independent trustee to take over a bankruptcy liquidation of China Fishery Group, which they have accused of stalling efforts to repay them. According to the report, in court papers filed with the U.S. Bankruptcy Court in Manhattan, lawyers for the lender group said they see "grave risk" in allowing the family that founded and controls the company -- the Ng family -- to remain in charge. "The need for transparency and independent oversight has been a substantial concern of the [lenders] for some time," the lawyers said, the report related. "The stakeholders have lost all faith in the Ng family properly using chapter 11 to best serve creditors’ interests." Ng Puay Yee, the company's chief executive officer, has hinted that lenders may try to wrest control of the company away from its current management, the report further related. In court papers filed in June when China Fishery sought chapter 11 protection, Mr. Ng said his business was "in jeopardy as a result of the aggressive and improper acts by certain lenders," the report said. Lenders, he said, have "grown impatient" and would rather pursue a "fire sale" of the company's assets than try to streamline its operations through a reorganization, the report added. 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 debt at $10 million to $50 million. CHUNG FAT SUPERMARKET: U.S. Trustee Forms 2-Member Committee ------------------------------------------------------------ The U.S. trustee for Region 2 on August 5 appointed two creditors of Chung Fat Supermarket, Inc., to serve on the official committee of unsecured creditors. The committee members are: (1) Sun Mind Jan, Inc. 111 Hester Street New York, NY 10002 Attn: Benjamin Chan Tel. (212) 965-8833 (2) Tai He Trading Corp. 32-33 Hunters Point Ave. Long Island City, NY 11101 Attn: Xu Ming Ren Tel. (718) 361-2501 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 Chung Fat Supermarket Chung Fat Supermarket, Inc. sought protection under Chapter 11 of the Bankruptcy Code (Bankr. E.D. N.Y. Case No. 15-45685) on December 21, 2015. The petition was signed by Yue Meing Jiang, Co-CEO. At the time of the filing, the Debtor disclosed $1.87 million in assets and $9.41 million in liabilities. COCRYSTAL PHARMA: Incurs $3.2 Million Net Loss in Second Quarter ---------------------------------------------------------------- Cocrystal Pharma, Inc., filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $3.22 million on $0 of grant revenues for the three months ended June 30, 2016, compared to a net loss of $2.62 million on $27,000 of grant revenues for the same period last year. For the six months ended June 30, 2016, the Company reported a net loss of $7.23 million on $0 of grant revenues compared to a net loss of $19.16 million on $53,000 of grant revenues for the six months ended June 30, 2015. As of June 30, 2016, Cocrystal Pharma had $220.14 million in total assets, $53.31 million in total liabilities and $166.83 million in total stockholders' equity. "We have a history of operating losses as we have focused our efforts on raising capital and research and development activities. The Company's consolidated financial statements are prepared using generally accepted accounting principles in the United States of America applicable to a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company has never been profitable, has no products approved for sale, has not generated any revenues to date from product sales, and has incurred significant operating losses and negative operating cash flows since inception. For the year ended December 31, 2015, the Company recorded a net loss of approximately $50.1 million and used approximately $10.3 million of cash in operating activities. For the six months ended June 30, 2016, the Company recorded a net loss of approximately $7.2 million and used approximately $9.2 million of cash for operating activities. "As the Company continues to incur losses, achieving profitability is dependent upon the successful development, approval and commercialization of its product candidates, and achieving a level of revenues adequate to support the Company's cost structure. The Company may never achieve profitability, and unless and until it does, the Company will continue to need to raise additional capital. Management intends to fund future operations through additional private or public equity offering and may seek additional capital through arrangements with strategic partners or from other sources. There can be no assurances, however, that additional funding will be available on terms acceptable to the Company, or at all. Any equity financing may be dilutive to existing shareholders," the Company states in the report. A full-text copy of the Form 10-Q is available for free at: https://is.gd/K1C7gQ About Cocrystal Pharma Cocrystal Pharma, Inc., formerly known as Biozone Pharmaceuticals, Inc., is a pharmaceutical company with a mission to discover novel antiviral therapeutics as treatments for serious and/or chronic viral diseases. Cocrystal Pharma employs unique technologies and Nobel Prize winning expertise to create first- and best-in-class antiviral drugs. These technologies and the Company's market- focused approach to drug discovery are designed to efficiently deliver small molecule therapeutics that are safe, effective and convenient to administer. The Company's primary business going forward is to develop novel medicines for use in the treatment of human viral diseases. Cocrystal has been developing novel technologies and approaches to create first-in-class and best-in-class antiviral drug candidates since its initial funding in 2008. Subsequent funding was provided to Cocrystal Discovery, Inc., by Teva Pharmaceuticals Industries, Ltd., or Teva, in 2011. The Company's focus is to pursue the development and commercialization of broad-spectrum antiviral drug candidates that will transform the treatment and prophylaxis of viral diseases in humans. By concentrating the Company's research and development efforts on viral replication inhibitors, the Company plans to leverage its infrastructure and expertise in these areas. Cocrystal Pharma, reported a net loss of $50.1 million on $78,000 of grant revenues for the year ended Dec. 31, 2015, compared to a net loss of $99,000 on $9,000 of grant revenues for the year ended Dec. 31, 2014. CRAIG ALLEN NEWHOUSE: 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 Craig Allen Newhouse. Craig Allen Newhouse sought protection under Chapter 11 of the Bankruptcy Code (Bankr. W.D. Wis. Case No. 16-12183) on June 20, 2016. The Debtor is represented by Thomas O. Mulligan II, Esq., at Mulligan Law Office. CRCI HOLDINGS: Moody's Assigns B2 Corporate Family Rating --------------------------------------------------------- Moody's Investors Service has assigned a B2 first time corporate family rating ("CFR") and a B2-PD probability of default rating ("PDR") to CRCI Holdings, Inc. ("CLEAResult / "CR"). Moody's also assigned B2 ratings to CR's proposed senior secured i) $40 million revolving credit facility ("Revolver") and ii) $330 million term loan credit facility ("TL"). The rating outlook is stable. The proceeds from the proposed TL and approximately $6.6 million of cash from CR's balance sheet will be used to refinance existing debt at CR and pay a dividend to CR's shareholders. The Revolver is expected to be undrawn at closing. RATINGS RATIONALE The B2 corporate family rating ("CFR") reflects: leverage of about 5.0x (Moody's adjusted and giving credit for some synergies) at LTM June 30, 2016, CR's competitive landscape that has downward pricing pressures (particularly in the utility revenue program model), it's highly acquisitive financial policy (revenues grew about 2x, primarily non-organically, from FY 2014 to LTM June 30, 2016), small scale and a limited revenue base. The ratings are supported by the company's leading position as a provider of outsourced energy efficiency ("EE") optimization solutions, the strategic and regulatory driven importance of the company's services to its customers and its strong recurring revenue stream. Moody's views CR's liquidity as good. Over the next 12 months Moody's expects CR to have cash and cash equivalents of about $5 million and to generate positive free cash flow ("FCF"). Over the next 12 months, Moody's also anticipates significant availability under CR's proposed Revolver, with adequate cushion under the springing financial covenants of the Revolver. The TL is anticipated to amortize approximately 1% per annum, with a bullet due at maturity about 7 years from closing. The stable outlook reflects Moody's expectation of mid-single digits revenue growth, EBITDA margins (on a Moody's adjusted basis) above 10%, leverage at the mid 4x or below and interest coverage of about 3x over the next year. CR's rating could be upgraded if: -- the company demonstrates high single digit organic revenue growth; -- leverage is sustained below 4x; -- and the company demonstrates strong liquidity and a commitment to conservative financial policies. CR's rating could be downgraded if: -- Liquidity materially weakens; or -- performance deteriorates materially, such that i) leverage reaches and is sustained at 6.0x or ii) FCF to debt is not on track to get to 8% over the next 12 to 18 months. The following ratings were assigned: Issuer -- CRCI Holdings, Inc. ("CLEAResult" / "CR") -- Corporate Family Rating -- B2 -- Probability of Default Rating -- B2-PD -- Senior Secured Revolving Credit Facility: - B2 (LGD 4) -- Senior Secured Term Loan B Credit Facility - B2 (LGD 4) -- Outlook - Stable The principal methodology used in these ratings was Business and Consumer Service Industry published in December 2014. CRCI Holdings, Inc. ("CLEAResult"/"CR"), headquartered in Austin, Texas, is a leading provider of outsourced energy efficiency ("EE") optimization solutions for both utility and non-utility clients in the US and Canada. General Atlantic LLC owns the majority of the equity interest in CR. CS MINING: Hires FTI Consulting to Provide CROs ----------------------------------------------- CS Mining, LLC seeks authorization from the U.S. Bankruptcy Court for the District of Utah to employ FTI Consulting, Inc. as interim management and restructuring advisor and Michael Buenzow, David J. Beckman and Randy Davenport as co-Chief Restructuring Officers, nunc pro tunc to June 2, 2016. The Debtor anticipates that the FTI Professionals will render, without limitation, these interim management and restructuring services during this chapter 11 case: The CRO-related services: -- reviewing the Company's operating plan and budgets, providing feedback as appropriate along with associated work plans as necessary; -- providing input and analyses related to alternative operating approaches; -- identifying and consulting on key copper mining and processing issues; -- working with management on key customer issues; -- advising the Company on operating plan, liquidity management, and restructuring alternatives; -- assisting with the DIP financing process; -- working closely with management and Company counsel to prepare for and execute on a voluntary chapter 11 process; and -- assisting the company with the preparation and confirmation of a value optimizing plan of reorganization. The services related to Chapter 11 & Post-Petition Analytical, Operating and Reporting Support: -- developing appropriate accounting procedures related to the filing and required reporting therefore; -- assisting the company with the development and finalization of critical business plans and forecast models; -- designing and implementing cash management procedures that comply with court authorizations; -- identifying critical vendor and inventory management steps to ensure business continuity; -- developing communication plans for all key stakeholders; -- preparing schedules, reports, etc., as required by the chapter 11 filing; -- performing other chapter 11 administrative tasks as necessary; -- analyzing executory contracts; -- analyzing and administering to the chapter 11 claims; -- preparing Monthly Operating Reports, Statement of Financial Affairs, and Schedules of Assets and Liabilities; and -- providing the analytical support required for the final preparation and confirmation of a value maximizing Plan of Reorganization. Pursuant to the Engagement Letter, CS Mining has agreed to pay FTI a fixed fee of $75,000 for the services rendered in connection with the preparation of documentation and schedules to convert the case to a voluntary Chapter 11 filing. Starting on the voluntary Chapter 11 conversion date, CS Mining has agreed to pay FTI a monthly fee of $125,000 for first month, $100,000 for the second month of the engagement, and then $80,000 for each month thereafter for the services rendered by the CROs. In addition, CS Mining has agreed to pay the Hourly Temporary Staff based on FTI's current billing rates as follows: Senior Managing Directors $825–$995 Directors/Managing Directors $615–$815 Consultants/Senior Consultants $325–$595 Administrative/Paraprofessionals $130–$260 The FTI will also be reimbursed for reasonable out-of-pocket expenses incurred. In addition, CS Mining has agreed to pay up-front to FTI a retainer of $100,000, which funds will be held "on account" to be applied to our professional fees, charges and disbursements for the engagement (the "Initial Cash on Account"). To the extent that the amount exceeds the fees, charges and disbursements upon the completion of the engagement, FTI will refund any unused portion. David J. Beckman, senior managing director with FTI, assured the Court that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtors and their estates. FTI can be reached at: David J. Beckman FTI CONSULTING, INC. 1001 17th St. #1100 Denver, CO 80202 Tel: (303) 689-8800 Fax: (303) 689-8802 E-mail: dave.beckman@fticonsulting.com About CS Mining CS Mining, LLC, is a mining and processing company headquartered in Milford, Utah. Purported creditors R.J. Bayer Professional Geologist, LLC; Minerals Advisory Group, LLC; Rollins Construction & Trucking, LLC; Rollins Machine, Inc.; and Oxbow Sulphur, Inc., filed an involuntary petition to put the Company into Chapter 11 bankruptcy (Bankr. D. Utah Case No. 16-24818) on June 2, 2016. Brahma Group, Inc. subsequently joined the petition. Judge William T. Thurman presides over the case. The Petitioners are represented by Martin J. Brill, Esq., at Levene, Neale, Bender, Yoo & Brill L.L.P and George B. Hofmann, Esq., at Cohne Kinghorn PC. CS Mining tapped Snell & Wilmer L.L.P. as local counsel, and Pepper Hamilton LLP as its legal counsel, nunc pro tunc to June 2, 2016. CYMA CLEANING: Court Confirms Plan, Approves Disclosure Statement ----------------------------------------------------------------- Judge Enrique S. Lamoutte Inclan of the U.S. Bankruptcy Court for the District of Puerto Rico inks final approval of the Disclosure Statement and confirmation of the Plan filed by CYMA Cleaning Contractors, Inc., Innova Industrial Contractor, Inc., Handy Man Services, Inc., and Ambitek Industrial Contractors, Inc. As previously reported by The Troubled Company Reporter, according to the Debtors' Plan supplement, the allowed unsecured priority claims from employees (Class 7) will be paid in monthly cash payments, in full, plus interest at 3.25% in a term not to exceed five years from the entry of the order of relief. The allowed unsecured claims of governmental units (Class 8) and the allowed unsecured claims from banking institutions (Class 9) will receive a 3% payment of the allowed amount in 84 monthly installments. The Debtors' allowed liability to Class 8 is estimated in the amount of $210,744. The Debtors' allowed liability to Class 9 is estimated in the amount of $282,699. The allowed unsecured trade claims (Class 10) will receive a 3% payment of the allowed amount on effective date. The Debtors' allowed liability to Class 10 is estimated in the amount of $99,359. A full-text copy of the Supplement dated Aug. 1, 2016, is available at http://bankrupt.com/misc/prb15-06582-142.pdf About CYMA Cleaning CYMA Cleaning Contractors, Inc. (Bankr. D.P.R., Case No. 15-06582), Innova Industrial Contractor, Inc. (Bankr. D.P.R., Case No. 15-06584), and Handy Man Services, Inc. (Bankr. D.P.R., Case No. 15-06585), filed Chapter 11 Petitions on August 27, 2015. The Debtors' counsel is Mary Ann Gandia-Fabian, Esq., at Gandia-Fabian Law Office, in San Juan, Puerto Rico. At the time of filing, CYMA Cleaning had $500,000 to $1.0 million in estimated assets and $1.0 million to $10.0 million in estimated liabilities; Innova Industrial had $100,000 to $500,000 in estimated assets and $50,000 to $100,000 in estimated liabilities; and Handy Man Services had $100,000 to $500,000 in estimated assets and $1.0 million to $10.0 million in estimated liabilities. The petition was signed by Ivelisse Gonzalez Rodriguez, president, CYMA Cleaning Contractors. CYRUS WAY HOLDINGS: Hires Larry Feinstein as Counsel ---------------------------------------------------- Cyrus Way Holdings LLC seeks authorization from the U.S. Bankruptcy Court for the Western District of Washington to employ Larry B. Feinstein as Chapter 11 counsel. The Debtor requires Mr. Feinstein to: (a) take all actions necessary to protect and preserve Debtor's bankruptcy estate, including the prosecution of actions on Debtor's behalf. To undertake, in conjunction as appropriate with special litigation counsel, the defense of any action commenced against Debtor, negotiations concerning litigation in which Debtor is involved, objections to claims filed against Debtor in this bankruptcy case, and the compromise or settlement of claims; (b) prepare the necessary applications, motions, memoranda, responses, complaints, answers, orders, notices, reports and other papers required from Debtor as debtor-in- possession in connection with administration of this case; (c) negotiate with creditors concerning a Chapter 11 plan, to prepare a Chapter 11 plan and disclosure statement and related documents, and to take the steps necessary to confirm and implement the proposed plan of liquidation; and (d) provide such other legal advice or services as may be required in connection with the Chapter 11 case. The Debtor agreed to compensate Mr. Feinstein on the basis of a reduced hourly rate of $375. Mr. Feinstein will also be reimbursed for reasonable out-of-pocket expenses incurred. Mr. Feinstein had been paid, during the one year period prior to filing, fees and costs from the Debtor of $2,500 for pre-petition legal services by the debtor related to preparing this Chapter 11, filing the case, and other pre-filing legal services; no funds are being held in Trust as a retainer. The filing fee has been paid to Mr. Feinstein to disburse $1,717 to his ECF credit card pre-petition for the Chapter 11 filing fee. Mr. Feinstein assured the Court that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtors and their estates. The counsel can be reached at: Larry B. Feinstein, Esq. VORTMAN & FEINSTEIN, P.S. 520 Pike Street, Suite 2250 Seattle, WA 98101 Tel: (206) 223-9595 Fax: (206) 386-5355 E-mail: feinstein1947@gmail.com About Cyrus Way Holdings LLC Cyrus Way Holdings LLC, based in Mukilteo, Wash., filed a Chapter 11 petition (Bankr. W.D. Wash. Case No. 16-13356) on June 24, 2016. The Hon. Timothy W. Dore presides over the case. Larry B. Feinstein, Esq. of Vortman & Fenstein, P.S. serves as bankruptcy counsel. In its petition, the Debtor estimated $1 million to $10 million both in assets and liabilities. The petition was signed by Mark L. Jackson, owner. DG3 HOLDINGS: SSG Acted as Investment Banker in Equity Sale ----------------------------------------------------------- SSG Capital Advisors, LLC, acted as the investment banker to DG3 Holdings, LLC, and its affiliates in the sale of all of their issued and outstanding equity interests to Resilience Capital Partners. The transaction closed in June 2016. DG3 is a provider of global print, technology, and visual communication services. DG3 provides its comprehensive graphic and interactive solutions to corporate, financial services, and pharmaceutical firms worldwide. For over thirty years, DG3's focus has been on delivering client-centric, globally integrated solutions to select vertical markets. DG3's management successfully operated, grew and positioned the Company for future growth. The Company strengthened its core business while executing strategic acquisitions to facilitate diversification and future growth opportunities despite operating with a levered balance sheet and multiple draws on cash flow. With limited ability to reinvest in the business, DG3's Board of Directors mandated that the Company explore strategic alternatives to better facilitate ongoing growth. SSG was retained as DG3's exclusive investment banker to conduct a comprehensive marketing process and contact a broad universe of buyers to achieve an optimal outcome for the Company and its key stakeholders. The process attracted significant interest from the market with Resilience ultimately submitting the most compelling offer to DG3 and its stakeholders. Resilience's purchase enabled the Company to rationalize its balance sheet and facilitate its go-forward growth strategy. Other professionals who worked on the transaction include: * Daniel A. Guerin, Walter S. Holzer, Louis R. Hernandez III, Kevin J. Coenen, Andrew Idrizovic, Joanna Lee, Evan C. Palenschat, and Emily Standen of Kirkland & Ellis LLP, counsel to Resilience Capital Partners; * Daniel J. Eisner, Patrick B. Costello, Drew M. Young, Alexandra Lauvaux and Erin Carney D'Angelo of DLA Piper LLP (US), counsel to Arsenal Capital Partners; * Philip J. Perzek and Robert G. McElroy of McGuireWoods, LLP, counsel to Chatham Capital; * Lawrence A. Goldman of Gibbons P.C., counsel to DG3 Holdings, LLC. About SSG Capital Advisors, LLC SSG Capital Advisors is an independent boutique investment bank that assists middle-market companies and their stakeholders in completing special situation transactions. It provides its clients with comprehensive investment banking services in the areas of mergers and acquisitions, private placements, financial restructurings, valuations, litigation and strategic advisory. SSG has a proven track record of closing over 300 transactions in North America and Europe and is a leader in the industry. SSG Capital Advisors, LLC (Member FINRA, SIPC) is a wholly owned broker dealer of SSG Holdings, LLC. SSG is a registered trademark for SSG Capital Advisors, LLC. SSG provides investment banking, restructuring advisory, merger, acquisition and divestiture services, private placement services and valuation opinions. Past performance is no guarantee of future results. DONALD GAUBE: Files Plan to Exit Chapter 11 Protection ------------------------------------------------------ Donald Gaube filed with the U.S. Bankruptcy Court for the Northern District of California his proposed plan to exit Chapter 11 protection. Under the restructuring plan, general unsecured claims are classified in Class 10. The allowed amount of the Class 10 claims could be as high as $37 million but the Debtor's best estimate is that the amount owing to the creditors could be approximately $18 million. General unsecured creditors are entitled to vote on the restructuring plan, according to the Debtor's disclosure statement detailing the plan. A copy of the disclosure statement is available for free at http://bankrupt.com/misc/DonaldGaube_1DS07292016.pdf About Donald F. Gaube Donald F. Gaube sought Chapter 11 protection (Bankr. N.D. Cal. Case No. 15-43783) on Dec. 13, 2015. MacConaghy & Barnier, PLC, serves as the Debtor's counsel. DRYSDALE VILLAGE: Wants to Use AEA Federal Credit Union's Cash -------------------------------------------------------------- The Drysdale Village, LLC, doing business as Frontier Village, asks the U.S. Bankruptcy Court for the District of Arizona, for authorization to use cash collateral. The Debtor obtained a loan from AEA Federal Credit Union, which matures on Nov. 28, 2016. It is indebted to AEA Federal Credit Union in the amount of $1,641,724. AEA Federal Credit Union has security interests in the Debtor's real property located at 3780 South 4th Avenue, Yuma, Arizona, as well as the Debtor's personal property or fixtures, inventory, chattel paper, accounts, equipment and general intangibles, and their proceeds. The Debtor's proposed Budget reveals that the Debtor expects to have cash needs of approximately $6,396 per month, for essential postpetition operating and other business expenses for the first 90 days of the case. The Debtor proposes to pay AEA Federal Credit Union monthly adequate protection in the amount of $10,350, which is equivalent to the current monthly payment obligation under its loan. A full-text copy of the Motion, dated Aug. 3, 2016, is available at https://is.gd/gFGP3W AEA Federal Credit Union is represented by: Gregory John Gnepper, Esq. GAMMAGE & BURNHAM, PLC Two North Central, 15th Floor Phoenix, AZ 85004 Telephone: (602) 256-4427 E-mail: ggnepper@gblaw.com About The Drysdale Village The Drysdale Village, LLC, dba Frontier Village, filed a chapter 11 petition (Bankr. D. Ariz. Case No. 16-08755) on July 29, 2016. The petition was signed by Raymond Drysdale, president. The Debtor is represented by Thomas H. Allen, Esq., at Allen Barnes & Jones, PLC. The case is assigned to Judge Scott H. Gan. The Debtor estimated assets and debt at $1 million to $10 million at the time of the filing. EAST END: Court Narrows Claims vs Amalgamated Bank -------------------------------------------------- Judge Robert E. Grossman of the United States Bankruptcy Court for the Eastern District of New York entered judgment in favor of the defendant on the First, Second, Fourth and Fifth Claims for Relief in the adversary proceeding captioned POST-EFFECTIVE DATE COMMITTEE OF THE ESTATE OF EAST END DEVELOPMENT, LLC, Plaintiff, v. AMALGAMATED BANK, as Trustee of Longview Ultra Construction Loan Investment Fund f/k/a Longview Ultra I Construction Loan Investment Fund, Defendant, Adv. Proc. No. 13-8081-reg (Bankr. E.D.N.Y.). The plaintiff, a committee of unpaid mechanic lienors, commenced the litigation on behalf of the estate of the debtor East End Development, LLC. The plaintiff asserted breach of contract and related claims against Amalgamated. Judge Grossman found that the plaintiff has failed to sustain its burden of proof on the following claims for relief: -- First Claim: Breach of Contract -- Second Claim: Breach of Implied Covenant of Good Faith and Fair Dealing -- Fourth Claim: Unjust Enrichment -- Fifth Claim: Declaratory Relief (finding that the debtor was not in default at the time Amalgamated issued notice of default in July 2009) A full-text copy of Judge Grossman's July 28, 2016 decision is available at https://is.gd/1wII2s from Leagle.com. The bankruptcy case is In re: EAST END DEVELOPMENT, LLC, Chapter 11, Debtor, Case No. 812-76181-reg (Bankr. E.D.N.Y.). Post Effective Date Committee of The Estate of East End Development, LLC is represented by: Melanie A. FitzGerald, Esq. Joseph S. Maniscalco, Esq. Rachel P. Stoian, Esq. LAMONICA HERBST & MANISCALCO LLP 3305 Jerusalem Avenue Wantagh, NY 11793 Tel: (516)826-6500 Fax: (516)826-0222 Email: mfitzgerald@lhmlawfirm.com jsm@lhmlawfirm.com Amalgamated Bank, As Trustee Of Longview Ultra Construction Loan Investment Fund, is represented by: Philip P. Campisi, Jr., Esq. Mickee M. Hennessy, Esq. John Westerman, Esq. WESTERMAN BALL EDERER MILLER & SHARFSTEI 1201 RXR Plaza Uniondale, NY 11556 Tel: (516)622-9200 Fax: (516)622-9212 Email: pcampisi@westermanllp.com mhennessy@westermanllp.com jwesternman@westermanllp.com About East End Development East End Development, LLC, the owner of a 90% completed condominium in Sag Harbor, New York, filed a Chapter 11 petition (Bankr. E.D.N.Y. Case No. 12-76181) in Central Islip, New York, on Oct. 12, 2012. Tracy L. Klestadt, Esq., at Klestadt & Winters LLP, in New York, N.Y., represents the Debtor in its restructuring efforts. Edifice Real Estate Partners, LLC serves as its construction consultant. The Debtor disclosed $27,300,207 in assets and $35,344,416 in liabilities in its schedules. John E. Westerman, Esq., and Mike M. Hennessey, Esq., at Westerman Ball Ederer Miller & Sharfstein, LLP, in Uniondale, N.Y., represents lender Amalgamated Bank as counsel. ELITE PHARMACEUTICALS: Reports First Quarter Net Income of $1.09M ----------------------------------------------------------------- Elite Pharmaceuticals, Inc., filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing net income of $1.09 million on $3.27 million of total revenue for the three months ended June 30, 2016, compared to net income of $4.73 million on $2.16 million of total revenue for the three months ended June 30, 2015. As of June 30, 2016, Elite had $33.05 million in total assets, $17.5 million in total liabilities, $46.42 million in mezzanine equity and a total stockholders' deficit of $30.9 million. "After three straight years of record revenues, Fiscal 2017 begins with another strong quarter with revenues continuing their upward trend," commented Nasrat Hakim, Elite's president and CEO. "Further, we are moving ahead with a plan to address the items listed by the FDA for SequestOX and will continue developing our abuse-deterrent product pipeline while growing our generic line." A full-text copy of the Form 10-Q is available for free at: https://is.gd/DZTFBE 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 ENERGY TRANSFER: Bank Debt Trades at 3% Off ------------------------------------------- Participations in a syndicated loan under Energy Transfer Equity LP is a borrower traded in the secondary market at 96.58 cents-on-the-dollar during the week ended Friday, July 29, 2016, according to data compiled by LSTA/Thomson Reuters MTM Pricing. This represents a decrease of 0.20 percentage points from the previous week. Energy Transfer pays 250 basis points above LIBOR to borrow under the $1.0 billion facility. The bank loan matures on Nov. 15, 2019 and carries Moody's Ba2 rating and Standard & Poor's BB rating. The loan is one of the biggest gainers and losers among 247 widely quoted syndicated loans with five or more bids in secondary trading for the week ended July 29. EXELIXIS INC: Enters Into Exchange Agreements with Noteholders -------------------------------------------------------------- Exelixis, Inc., entered into separate, privately negotiated exchange agreements with certain holders of the Company's 4.25% Convertible Senior Subordinated Notes due 2019, as disclosed in a regulatory filing with the Securities and Exchange Commission. Under the terms of the exchange agreements, the Holders agreed to exchange an aggregate principal amount of approximately $168.1 million of Notes held by them in exchange for an aggregate of approximately 31,639,530 shares of the Company's common stock. In addition, pursuant to the exchange agreements, Exelixis, Inc. will make an aggregate cash payment of approximately $1.7 million to the Holders for additional exchange consideration. The transaction is expected to close on or about Aug. 12, 2016, subject to customary closing conditions. Immediately following the exchange of the Notes contemplated by the exchange agreements, approximately $119.4 million in aggregate principal amount of the Notes will remain outstanding. About Exelixis Inc. Headquartered in South San Francisco, California, Exelixis, Inc., develops innovative therapies for cancer and other serious diseases. Through its drug discovery and development activities, Exelixis is building a portfolio of novel compounds that it believes has the potential to be high-quality, differentiated pharmaceutical products. Exelixis reported a net loss of $170 million on $37.2 million of total revenues for the year ended Dec. 31, 2015, compared to a net loss of $269 million on $25.1 million of total revenues for the year ended Dec. 31, 2014. As of June 30, 2016, Exelixis had $477 million in total assets, $663 million in total liabilities and a total stockholders' deficit of $186 million. FENDER MUSICAL: Moody's Hikes Corporate Family Rating to B1 ----------------------------------------------------------- Moody's Investors Service upgraded Fender Musical Instruments Corporation's Corporate Family Rating to B1 from B2 due to much improved credit metrics and Moody's expectation that the improvements will be sustained. The rating outlook is stable. "Fender has paid down about $40 million of debt in the last year with free cash flow bringing total pay down to almost $75 million for the last two years," said Kevin Cassidy, Senior Credit Officer at Moody's Investors Service. This is in spite of EBITDA not materially changing. The debt reduction has resulted in almost a full turn of leverage reduction with debt/EBITDA now around 2.5 times," he noted. Ratings upgraded: -- Corporate Family Rating to B1 from B2; -- Probability of Default Rating to B1-PD from B2-PD; -- $200 million senior secured term loan ($104 million outstanding) due March 2019 to B1 (LGD 4) from B2 (LGD 4) RATINGS RATIONALE Fender's B1 Corporate Family Rating reflects its solid credit metrics with financial leverage around 2.5 times, well-known brand names, solid liquidity profile, good geographic diversification throughout the United States and internationally and leading market share in guitars. The rating also reflects the lack of significant product diversification outside of musical instruments (principally guitars) and relatively small size with revenue around $450 million. The uncertainty in the macro economy, including moderate growth in discretionary consumer spending in the United States, and economic risks in Europe where the company generates more than 20% of its revenue is also considered in the rating. The stable outlook reflects Moody's expectation that Fender's credit metrics and operating performance will remain steady for the foreseeable future. There is little upward rating pressure in the near term given the company's small scale. Over the longer term, if the revenue base were to meaningfully increase, the rating could be upgraded if: debt/EBITDA is sustained below 2 times and low teen EBIT margins are maintained. The rating could be downgraded if Fender's operating performance were to meaningfully decline for whatever reason. Key credit metrics driving a potential downgrade would be: debt/EBITDA sustained over 4 times and low single digit EBIT margins. The principal methodology used in this rating was the Consumer Durables Industry published in September 2014. Fender Musical Instruments Corporation, based in Scottsdale, Arizona, develops, manufactures and distributes musical instruments, principally guitars, to wholesale and retail outlets throughout the world. Revenue for the twelve months ending March 31, 2016, approximated $450 million. Fender is partially owned by Servco and TPG Growth. FINJAN HOLDINGS: Incurs $4.58 Million Net Loss in Second Quarter ---------------------------------------------------------------- Finjan Holdings, Inc., filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss to common stockholders of $4.58 million on $6.52 million of revenues for the three months ended June 30, 2016, compared to a net loss to common stockholders of $2.64 million on $700,000 of revenues for the same period during the prior year. For the six months ended June 30, 2016, the Company reported a net loss to common stockholders of $5.74 million on $8.84 million of revenues compared to a net loss to common stockholders of $6.83 million on $700,000 of revenues for the six months ended June 30, 2015. As of June 30, 2016, the Company had $20.41 million in total assets, $4.32 million in total liabilities, $14.97 million in redeemable preferred stock and $1.12 million in total stockholders' equity. "We successfully navigated through a very active quarter in our licensing and enforcement program. We secured - for a third time from the Court - an Order upholding the $39.5 million judgment (plus pre and post judgment interest) against Blue Coat Systems. We granted a license and settled our litigation with Proofpoint for $10.9 million, and signed a license - outside of litigation - with a European cloud-based networking company. We filed a series of new cases against ESET and its affiliates in the U.S. and Germany. Most recently, we filed for a preliminary injunction seeking to bar Blue Coat from selling its infringing WebPulse products in the United States," said Phil Hartstein, President and CEO of Finjan Holdings. "Additionally, Finjan's patents have been recognized as durable by the District Court in Blue Coat, the U.S. Patent and Trademark Office ("USPTO") and the USPTO's Patent Trial and Appeal Board ("PTAB"). To date, 88% of challenges before the USPTO and PTAB have been denied or rescinded and only 12% have been instituted against only four of our patents." "This quarter reflects an intersection in the Company's efforts where the investment of time and effort to license and enforce our patents are beginning to produce recurring results. Looking ahead we continue to make strides towards diversifying our revenue through the launch of our emerging businesses as we build upon the Finjan brand, protect our IP built through our 20 year history in cybersecurity and ultimately deliver the greatest value to our licensees and our shareholders," concluded Hartstein. A full-text copy of the Form 10-Q is available for free at: https://is.gd/0Hy9Xq About Finjan Finjan, formerly known as Converted Organics, is a leading online security and technology company which owns a portfolio of patents, related to software that proactively detects malicious code and thereby protects end-users from identity and data theft, spyware, malware, phishing, trojans and other online threats. Founded in 1997, Finjan is one of the first companies to develop and patent technology and software that is capable of detecting previously unknown and emerging threats on a real-time, behavior-based basis, in contrast to signature-based methods of intercepting only known threats to computers, which were previously standard in the online security industry. Finjan Holdings reported a net loss of $12.6 million in 2015, a net loss of $10.5 million in 2014 and a net loss of $6.07 million in 2013. FLORIDA FOREST: 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 Florida Forest Products of Cross City, Inc. Florida Forest Products of Cross City, Inc., filed for Chapter 11 bankruptcy protection (Bankr. N.D. Fla. Case No. 16-10148) on June 28, 2016. The Debtor is represented by Angela M. Ball, Esq. FORESIGHT ENERGY: Incurs $27.7 Million Net Loss in Second Quarter ----------------------------------------------------------------- Foresight Energy LP filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $27.7 million on $226 million of total revenues for the three months ended June 30, 2016, compared to a net loss of $25.3 million on $251 million of total revenues for the three months ended June 30, 2015. For the six months ended June 30, 2016, the Company reported a net loss of $69.3 million on $392 million of total revenues compared to net income of $17.4 million on $490 million of total revenues for the same period last year. As of June 30, 2016, Foresight had $1.74 billion in total assets, $1.79 billion in total liabilities and a total partners' deficit of $45.9 million. "Despite continuing challenges in the domestic and international coal markets, Foresight's second quarter results improved significantly versus the first quarter of this year largely due to increased sales volumes and improved cost control. We have taken the necessary steps of altering our production schedules in an effort to more closely match our production with market demand. While production schedules were significantly reduced during the quarter, Foresight was still able to maintain its low-cost operating profile. This continued commitment to safe, low cost coal production positions Foresight to withstand the pressures of the current coal market and will allow us to capture contracting opportunities as they arise," said Rob Moore, president and chief executive officer. Update on Restructuring Efforts As previously announced, on July 22, 2016, Foresight entered into amended and restated transaction support agreements with certain consenting noteholders of its 2021 senior notes, certain consenting lenders to its credit agreement, and certain principal equityholders of Foresight and its general partner. The transaction support agreements modified the terms of the restructuring of the Partnership's indebtedness and certain governance and equity matters relating to the Partnership, including a proposed amendment of its credit agreement. On Aug. 1, 2016, Foresight achieved the first important milestone of the amended and restated transaction support agreements and launched the tender offer and exchange offer as part of the Restructuring. "We are pleased that we have concluded the negotiations with our creditors," said Mr. Moore. "Together the Partnership, equity sponsors and debt holders have shown an increased commitment to the long-term viability of Foresight Energy. While the negotiations were challenging, we have reached an agreement that allows Foresight Energy to move forward and continue to achieve the goal of operating the safest, lowest cost, and most productive coal mines in the Illinois Basin." The successful consummation of the Restructuring remains subject to various conditions, including the successful negotiation of definitive documentation and other conditions that are not within the control of Foresight or its affiliates. As such, there can be no assurance that Foresight will be able to successfully negotiate or implement any of the proposed Restructuring transactions contemplated by the support agreements, or if it is able to do so, that such negotiation or implementation will be consistent with the terms as previously disclosed. A full-text copy of the Form 10-Q is available for free at: https://is.gd/8Fc1sa About Foresight Energy Foresight Energy mines and markets coal from reserves and operations located exclusively in the Illinois Basin. As of Dec. 31, 2015, the Company has invested over $2.3 billion to construct state-of-the-art, low-cost and highly productive mining operations and related transportation infrastructure. The Company controls over 3 billion tons of proven and probable coal in the state of Illinois, which, in addition to making the Company one of the largest reserve holders in the United States, provides organic growth opportunities. The Company's reserves consist principally of three large contiguous blocks of uniform, thick, high heat content (high Btu) thermal coal which is ideal for highly productive longwall operations. Thermal coal is used by power plants and industrial steam boilers to produce electricity or process steam. Foresight Energy reported a net loss attributable to limited partner units of $39.47 million on $984.85 million of total revenues for the year ended Dec. 31, 2015, compared to net income attributable to limited partner units of $70.19 million on $1.10 billion of total revenues for the year ended Dec. 31, 2014. Ernst & Young LLP, in St. Louis, Missouri, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2015, noting that the Partnership is in default of certain provisions of its long-term debt and capital lease obligations, resulting in a working capital deficit as of Dec. 31, 2015. These conditions raise substantial doubt about the Partnership's ability to continue as a going concern. * * * The Troubled Company Reporter on March 22, 2016, reported that Standard & Poor's Ratings Services said it lowered its corporate rating on St. Louis-based Foresight Energy to 'D' from 'CCC-'. As reported by the TCR on March 29, 2016, Moody's Investors Service downgraded all ratings of Foresight Energy, including the corporate family rating to 'Caa3' from 'Caa1'. GATES GROUP: Bank Debt Trades at 2% Off --------------------------------------- Participations in a syndicated loan under Gates Group is a borrower traded in the secondary market at 97.93 cents-on-the-dollar during the week ended Friday, July 29, 2016, according to data compiled by LSTA/Thomson Reuters MTM Pricing. This represents an increase of 2.47 percentage points from the previous week. Gates Group pays 450 basis points above LIBOR to borrow under the $1.5 billion facility. The bank loan matures on Nov. 19, 2022 and carries Moody's B2 rating and Standard & Poor's B+ rating. The loan is one of the biggest gainers and losers among 247 widely quoted syndicated loans with five or more bids in secondary trading for the week ended July 29. GAWKER MEDIA: Settling Daily Mail's Defamation Suit --------------------------------------------------- Tom Corrigan, writing for The Wall Street Journal, reported that Gawker Media LLC is in the "final stages" of settling a defamation suit brought by British tabloid The Daily Mail, a lawyer for Gawker said. According to the report, the lawyer, Gregg Galardi, didn't disclose the terms of the settlement, but such a deal could resolve one of a long list of defamation lawsuits Gawker is facing from subjects of its past articles. The acknowledgment of an expected deal with the Daily Mail comes amid preliminary settlement talks between Gawker and former professional wrestler Hulk Hogan to try to resolve the largest of the publisher's legal woes, the report related. A $140 million invasion of privacy judgment stemming from a suit brought by Terry Bollea, Hogan's real name, pushed Gawker into chapter 11 earlier this year, the report further related. Nick Denton, Gawker's founder and chief executive, is liable for $10 million of the judgment and jointly liable for another $115 million, the report said. Gawker, which has appealed the $140 million award, is also facing defamation suits from blogger Charles Johnson, journalist Ashley Terrill and tech entrepreneur Shiva Ayyadurai, who claims to have invented email, the report added. The Daily Mail sued Gawker last year after the New York media company published a first-person narrative by James King, a former Daily Mail employee, titled "My Year Ripping Off the Web With the Daily Mail Online," the report related. The article was deeply critical of the journalistic standards of the MailOnline, the Daily Mail's online presence, and its aggregation policies, the report said. The Daily Mail's lawsuit, filed in New York state court, claimed Mr. King's account and Gawker's article were full of "blatant, defamatory falsehoods intended to disparage The Mail," the report added. About Gawker Media Founded in 2002 by Nick Denton, Gawker Media is privately held online media company operating seven distinct media brands with corresponding websites under the names Gawker, Deadspin, Lifehacker, Gizmodo, Kotaku, Jalopnik, and Jezebel. The Company's various Websites cover, among other things, news and commentary on current events, politics, pop culture, sports, cars, fashion, productivity, technology and video games. Gawker sought bankruptcy protection after being ordered to pay $140.1 million in connection with an invasion of privacy lawsuit arising from publication of a report and commentary and accompanying sex video involving Terry Gene Bollea. New York-based Gawker Media, LLC -- fdba Gawker Sales, LLC, Gawker Entertainment, LLC, Gawker Technology, LLC and Blogwire, Inc. -- filed a Chapter 11 bankruptcy petition (Bankr. S.D.N.Y. Case No. 16-11700) on June 10, 2016. The Hon. Stuart M. Bernstein presides over the Debtors' cases. Affiliates Gawker Media Group, Inc. and Budapest, Hungary-based Kinja, Kft. filed separate Chapter 11 petitions (Bankr. S.D.N.Y. Case Nos. 16-11719 and 16-11718) on June 12, 2016. The cases are jointly administered. Gregg M. Galardi, Esq., David B. Hennes, Esq. and Michael S. Winograd, Esq., at Ropes & Gray LLP serve as counsel to the Debtors. William Holden at Opportune LLP serves as Gawkers' chief restructuring officer. Houlihan Lokey Capital, Inc. serves as the Debtors' investment banker. Prime Clerk LLC serves as claims, balloting and administrative agent. Houlihan Lokey was retained by the Debtors on May 16, 2016, to explore the possibility of a sale of all or substantially all of the Debtors' assets, with the goal of maximizing return to the Debtors' estates in the event of a possible chapter 11 filing. The Debtors estimated $50 million to $100 million in assets and $100 million to $500 million in liabilities. The U.S. trustee for Region 2 on June 24 appointed three creditors of Gawker Media LLC and its affiliates to serve on the official committee of unsecured creditors. The committee members are Terry Gene Bollea, popularly known as Hulk Hogan, Shiva Ayyadurai, and Ashley A. Terrill. GENON ENERGY: Incurs $116 Million Net Loss in Second Quarter ------------------------------------------------------------ GenOn Energy, Inc., filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $116 million on $398 million of total operating revenues for the three months ended June 30, 2016, compared to a net loss of $18 million on $560 million of total operating revenues for the three months ended June 30, 2015. For the six months ended June 30, 2016, the Company reported a net loss of $15 million on $977 million of total operating revenues compared to a net loss of $29 million on $1.31 billion of total operating revenues for the six months ended June 30, 2015. As of June 30, 2016, Genon had $5.13 billion in total assets, $4.87 billion in total liabilities and $257 million in total stockholders' equity. A full-text copy of the Form 10-Q is available for free at: https://is.gd/MMx8gd About Genon GenOn Energy, Inc. and its affiliates are wholesale power generation subsidiaries of NRG, which is a competitive power company that produces, sells and delivers energy and energy services, primarily in major competitive power markets in the U.S. GenOn is an indirect wholly-owned subsidiary of NRG. GenOn was incorporated as a Delaware corporation on Aug. 9, 2000, under the name Reliant Energy Unregco, Inc. GenOn Americas Generation and GenOn Mid-Atlantic are indirect wholly owned subsidiaries of GenOn. GenOn Americas Generation was formed as a Delaware limited liability company on Nov. 1, 2001, under the name Mirant Americas Generation, LLC. GenOn Mid-Atlantic was formed as a Delaware limited liability company on July 12, 2000, under the name Southern Energy Mid-Atlantic, LLC. GenOn Mid-Atlantic is a wholly-owned subsidiary of NRG North America and an indirect wholly owned subsidiary of GenOn Americas Generation. The Registrants are engaged in the ownership and operation of power generation facilities; the trading of energy, capacity and related products; and the transacting in and trading of fuel and transportation services. GenOn Energy reported a net loss of $115 million in 2015 following net income of $192 million in 2014. * * * As reported by the TCR on March 25, 2016, Moody's Investors Service downgraded GenOn Energy, Inc.'s corporate family rating (CFR) and probability of default (PD) rating to Caa2, from B3, and Caa2-PD from B3-PD, respectively. The TCR reported on May 26, 2016, that S&P Global Ratings lowered its corporate credit rating on GenOn Energy Inc. and its affiliates GenOn Energy Holdings Inc., GenOn Americas LLC, and GenOn REMA LLC to 'CCC' from 'CCC+'. The outlook is negative. GLOBAL GEOPHYSICAL: Wants to Access $2-Mil. DIP Facility -------------------------------------------------------- Global Geophysical Services, Inc., and its affiliated debtors ask the U.S. Bankruptcy Court for the Southern District of Texas for authorization to obtain postpetition financing from Wilmington Savings Fund Society, FSB, as agent, and the DIP Lenders. The proposed Debtor-In-Possession Facility contains, among others, these relevant terms: (1) Credit Facility: The DIP Facility will consist of a postpetition senior secured revolving loan facility provided to Borrowers of up to $2,000,000. (2) Interest Rate: The Revolving Loans will bear interest at a rate per annum of 15%. (3) Collateral and Priority: To secure all obligations of each Loan Party under the DIP Facility, the Loan Parties will grant a first priority (subject to certain permitted liens) perfected security interests in and liens upon substantially all assets, rights, entitlements and any other interests of any kind and, in each case, all proceeds therefrom. All amounts owing by the Loan Parties under the DIP Facility at all times will constitute allowed super-priority administrative expense claims in the Chapter 11 Cases having priority over all other administrative expenses of the kind specified in Sections 503(b) and 507(b) of the Bankruptcy Code, other than the Carve Out. (4) Carve-Out: Means the following expenses: (a) all fees required to be paid to the Clerk of the Bankruptcy Court and to the Office of the U.S. Trustee, plus interest; (b) to the extent allowed by the Bankruptcy Court at any time, the accrued and unpaid fees, disbursements, costs and expenses incurred by professionals or professional firms retained by the Debtors or the Official Committee of Unsecured Creditors; (c) all unpaid fees, disbursements, costs and expenses incurred by the Professionals after the day date of the delivery by the DIP Agent (at the direction of the Required DIP Lenders) of a Carve Out Trigger Notice, to the extent allowed by the Bankruptcy Court at any time, in an aggregate amount not to exceed $100,000.00. (5) Use of Proceeds: The proceeds of the Revolving Loans will be used in accordance with the Budget, as approved, or as otherwise consented to in writing by the DIP Lenders. (6) Closing Date: Aug. 5, 2016 (7) Maturity Date: The DIP Facility shall be for a term ending on the earliest of: (a) Nov. 1, 2016; (b) the substantial consummation of a plan of reorganization or liquidation filed in the Chapter 11 Cases that is confirmed pursuant to an order entered by the Bankruptcy Court; and (c) the acceleration of the Loans and termination of the Commitments. The Debtors are indebted to: (1) Wilmington Savings Fund Society, FSB, as First Lien Agent and the First Lien Lenders, in the amount of $85,104,644, under the Pre-Petition First Lien Credit Agreement. The indebtedness is secured by liens on substantially all real and personal property of the Debtors, and certain assets of certain foreign non-debtor subsidiaries of the Debtors . (2) Wilmington Trust, National Association, as agent, and the Second Lien Lenders, in the amount of $40,445,999, under the Pre-petition Second Lien Credit Agreement. The indebtedness is ecured by liens on substantially all real and personal property of the Debtors, and certain assets of certain foreign non-debtor subsidiaries of the Debtors. The liens securing the Debtor's obligations under the Pre-petition Second Lien Credit Agreement are subordinate and junior to the liens securing the Debtors' obligations under the Pre-petition First Lien Credit Agreement. The Debtor relates that the DIP financing is in the best interests of all stakeholders because it will finance these cases and provide a bridge to exit financing that, together with the Prepackaged Plan and related agreements, will allow for an orderly wind-down and a recovery for unsecured creditors. A full-text copy of the Debtors' Motion, dated August 3, 2016, is available at https://is.gd/xPj7sG The DIP Agent and the Prepetition First Lien Agent is represented by: James S. Carr, Esq. Pamela Bruzzese-Szczygiel, Esq. KELLEY DRYE & WARREN LLP 101 Park Avenue New York, NY 10178 The DIP Lenders and the First Lien Lenders are represented by: Leonard Klingbaum, Esq. John C. Longmire, Esq. WILLKIE FARR & GALLAGHER LLP 787 Seventh Avenue New York, NY 10019 - and - Jennifer J. Hardy, Esq. WILLKIE FARR & GALLAGHER LLP 600 Travis Street, Suite 2310 Houston, TX 77002 About Global Geophysical Services Global Geophysical Services Inc., a provider of seismic data for the oil and gas drilling industry, sought bankruptcy protection, intending to reorganize on its own with additional capital or explore a sale or other transaction. Based in Missouri City, Texas, Global Geophysical disclosed assets of $468.7 million and liabilities totaling $407.3 million as of Sept. 30, 2013. Liabilities include $81.8 million on a secured term loan owing to TPG Specialty Lending Inc. and Tennenbaum Capital Partners LLC. TPG is the lenders' agent. Global also owes $250 million on two issues of 10.5 percent senior unsecured notes, with Bank of New York Mellon Trust Co. as indenture trustee. Global Geophysical and five affiliates, including Autoseis, Inc. (lead debtor), filed Chapter 11 petitions in Corpus Christi, Texas (Bankr. S.D. Tex. Lead Case No. 14-20130) on March 25, 2014. The petitions were signed by Sean M. Gore, senior vice president and chief financial officer. The case is assigned to Judge Richard S. Schmidt. The Debtors are represented by C. Luckey McDowell, Esq., Omar Alaniz, Esq., and Ian E. Roberts, Esq., at Baker Botts, LLP, in Dallas, Texas; and Shelby A. Jordan, Esq., and Nathanial Peter Holzer, Esq., at Jordan, Hyden, Womble, Culbreth, & Holzer, PC in Corpus Christi, Texas. Alvarez & Marsal serves as the Debtors' restructuring advisors, Fox Rothschild Inc. as financial advisor, and Prime Clerk as claims and noticing agent. The U.S. Trustee for Region 7 selected seven creditors to the Official Committee of Unsecured Creditors. The Committee tapped Greenberg Traurig, LLP as counsel; and Lazard Freres & Co. LLC and Lazard Middle Market LLC, as financial advisors and investment bankers. The Ad Hoc Group of Noteholders and the DIP Lenders are represented by Marty L. Brimmage, Jr., Esq., Charles R. Gibbs, Esq., Michael S. Haynes, Esq., and Lacy M. Lawrence, Esq., at Akin Gump Strauss Hauer & Feld LLP. Prepetition secured lender TPG is represented by David M. Bennett, Esq., Tye C. Hancock, Esq., and Joseph E. Bain, Esq., at Thompson & Knight LLP; and Adam C. Harris, Esq., Lawrence V. Gelber, Esq., David M. Hillman, Esq., and Brian C. Tong, Esq., at Schulte Roth & Zabel LLP. GYMBOREE CORP: Bank Debt Trades at 22% Off ------------------------------------------ Participations in a syndicated loan under Gymboree Corp is a borrower traded in the secondary market at 77.79 cents-on-the-dollar during the week ended Friday, July 29, 2016, according to data compiled by LSTA/Thomson Reuters MTM Pricing. This represents an increase of 0.21 percentage points from the previous week. Gymboree Corp pays 350 basis points above LIBOR to borrow under the $0.82 billion facility. The bank loan matures on Feb. 23, 2018 and carries Moody's Caa1 rating and Standard & Poor's /CCC+ rating. The loan is one of the biggest gainers and losers among 247 widely quoted syndicated loans with five or more bids in secondary trading for the week ended July 29. HILLSBOROUGH RIVER: Taps Suzy Tate as Counsel --------------------------------------------- Hillsborough River Pharmacy, Inc. seeks authorization from the U.S. Bankruptcy Court for the Middle District of Florida to employ Suzy Tate, P.A. as counsel, effective as of the July 30, 2016 petition date. The Debtor requires Ms. Tate to: (a) take all necessary action to protect and preserve the estate of the Debtor, including the prosecution of actions on its behalf, defense of any actions commenced against them, negotiations concerning all bankruptcy litigation in which they are involved, and objections, when appropriate, in objecting to claims filed against the estate; (b) prepare, on behalf of the Debtor, any applications, answers, orders, reports, and/or papers in connection with the administration of the estate; (c) counsel the Debtor with regard to its rights and obligations as debtor-in-possession; (d) negotiate, prepare, and file a chapter 11 plan of reorganization and corresponding disclosure statement and seek approval of such disclosure statement and confirmation of such plan; and (e) perform all other necessary legal services in connection with these chapter 11 cases. Ms. Tate's current hourly rate is $300. Ms. Tate will also be reimbursed for reasonable out-of-pocket expenses incurred. Prior to the Petition Date, the firm received a total of $8,782.20 as retainer in connection with the preparation for filing the bankruptcy cases for the Debtor. As is the Firm's practice in all chapter 11 cases, the Firm applied the Pre-Petition Retainer to the amounts due for pre-petition services rendered and costs incurred as of the Petition Date. The Firm was owed $3,667 for pre-petition services rendered and costs incurred in connection with the preparation of the Petition and the filing of the bankruptcy cases. The balance of the Pre-Petition retainer is $5,115.20, which will be held as security of services to be rendered and costs to be incurred in the Debtor's bankruptcy case following the Petition Date. Ms. Tate assured the Court that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtors and their estates. The counsel can be reached at: Suzy Tate, Esq. SUZY TATE, P.A. 14502 N. Dale Mabry, Ste. 200 Tampa, FL 33618 Tel: (813) 264-1685 Fax: (813) 264-1690 E-mail: suzy@suzytate.com Hillsborough River Pharmacy, Inc. filed a Chapter 11 bankruptcy petition (Bankr. M.D. Fla. Case No. 16-06579) on July 30, 2016, listing under $100,000 in assets and under $1,000,000 in liabilities. HOOVER GROUP: Ferguson Merger No Impact on Moody's B3 CFR --------------------------------------------------------- Moody's Investors Service said in an issuer comment published on Aug. 10, 2016 that Hoover Group, Inc.'s ("Hoover") plans to merge with Ferguson Group and CHEP Catalyst & Chemical Containers is a credit positive. However, it does not currently affect Hoover's B3 Corporate Family Rating or stable outlook. Hoover provides chemical tanks, cargo carrying units, and related products and services for the global energy, petrochemical and related industrial end markets. The company generated revenue of $98 million for the twelve months ended March 31, 2016. Hoover is majority owned by the private equity firm First Reserve. ILLINOIS POWER: Reports $570 Million Net Loss for Second Quarter ---------------------------------------------------------------- Illinois Power Generating Company filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $570 million on $97 million of revenues for the three months ended June 30, 2016, compared to a net loss of $19 million on $131 million of revenues for the three months ended June 30, 2015. For the six months ended June 30, 2016, the Company reported a net loss of $577 million on $196 million of revenues compared to a net loss of $35 million on $274 million of revenues for the six months ended June 30, 2015. As of June 30, 2016, the Company had $550 million in total assets, $986 million in total liabilities, and a total deficit of $436 million. "As a result of continued weak energy prices, unsold capacity volumes, on-going required maintenance and environmental expenditures, upcoming interest payments, as well as consideration of a $300 million debt maturity in 2018, we have engaged advisors and, with the assistance of these advisors, have begun a strategic review. While our projected future cash flow is sufficient to cover our obligations through December 31, 2016, we may not have sufficient future operating cash flow to satisfy our debt maturity in 2018, absent a debt refinancing or restructuring. Actions to resolve this situation could include one or more of the following: (i) restructuring our debt to achieve a more sustainable business model; (ii) transitioning ownership of our assets to our debt holders; (iii) deferring discretionary capital expenditures to the extent possible; (iv) continued shut down of uneconomic generation; and/or (v) seeking bankruptcy protection," the Company stated in the report. A full-text copy of the Form 10-Q is available for free at: https://is.gd/7ZKSik About Illinois Power Illinois Power Generating Company is an electric generation subsidiary of Illinois Power Resources, LLC, which is an indirect wholly-owned subsidiary of Dynegy Inc. The Company is headquartered in Houston, Texas and were incorporated in Illinois in March 2000. It owns and operates a merchant generation business in Illinois. The Company has an 80 percent ownership interest in Electric Energy, Inc., which it consolidates for financial reporting purposes. EEI operates merchant electric generation facilities in Illinois and FERC-regulated transmission facilities in Illinois and Kentucky. The Company also consolidates its wholly-owned subsidiary, Coffeen and Western Railroad Company, for financial reporting purposes. Illinois Power reported a net loss of $563 million on $534 million of revenues for the year ended Dec. 31, 2015, compared to a net loss of $48 million on $648 million of revenues for the year ended Dec. 31, 2014. * * * As reported by the TCR on June 17, 2016, S&P Global Ratings revised its outlook on Illinois Power Generating Co. to negative from stable. At the same time, S&P affirmed the 'CCC+' corporate credit rating and 'CCC+' ratings on the senior unsecured debt. IMAGEWARE SYSTEMS: Incurs $2.42 Million Net Loss in Second Quarter ------------------------------------------------------------------ Imageware Systems, Inc., filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss available to common shareholders of $2.42 million on $996,000 of revenue for the three months ended June 30, 2016, compared to a net loss available to common shareholders of $2.06 million on $1.69 million of revenue for the three months ended June 30, 2015. For the six months ended June 30, 2016, the Company reported a net loss available to common shareholders of $5.04 million on $2.03 million of revenue compared to a net loss available to common shareholders of $4.60 million on $2.68 million of revenue for the same period last year. As of June 30, 2016, Imageware had $4.56 million in total assets, $4.62 million in total liabilities and a total shareholder's deficit of $68,000. "As reflected in the accompanying consolidated financial statements, the Company has continuing losses, negative working capital and negative cash flows from operations. Available borrowings under our existing Lines of Credit may be insufficient to provide for our working capital needs for the next twelve months. As a result, we may need to raise additional capital through debt and/or equity financing to execute our business plan. In addition, in the event we are unable to raise additional capital, we may be required to sell certain of the Company's assets or license the Company's technologies to others. These uncertainties raise substantial doubt about the Company's ability to continue as a going concern," the Company states in the report. A full-text copy of the Form 10-Q is available for free at: https://is.gd/DzSNRd About ImageWare Systems Headquartered in San Diego, California, ImageWare Systems, Inc., is a leader in the emerging market for software-based identity management solutions, providing biometric, secure credential, law enforcement and enterprise authorization. Its "flagship" product is the IWS Biometric Engine. Scalable for small city business or worldwide deployment, the Company's biometric engine is a multi- biometric platform that is hardware and algorithm independent, enabling the enrollment and management of unlimited population sizes. The Company's identification products are used to manage and issue secure credentials, including national IDs, passports, driver licenses, smart cards and access control credentials. Its law enforcement products provide law enforcement with integrated mug shot, fingerprint LiveScan and investigative capabilities. The Company also provides comprehensive authentication security software. Imageware Systems reported a net loss available to common shareholders of $9.59 million on $4.76 million of revenues for the year ended Dec. 31, 2015, compared to a net loss available to common shareholders of $7.99 million on $4.15 million of revenues for the year ended Dec. 31, 2014. INTERNATIONAL BRIDGE: Has Until Feb. 2017 to File Plan ------------------------------------------------------ Judge Robert D. Berger of the U.S. Bankruptcy Court for the District of Kansas extended International Bridge Corporation's exclusive plan filing period until February 28, 2017, and exclusive solicitation period until April 29, 2017. As previously by the Troubled Company Reporter, the Debtor sought extension of its exclusive period due to the pendency of the CDA Claims -- a contract dispute before a Navy Contracting Officer pursuant to Contract Disputes Act under Contract Number N62742-08-C-1301 FY08 MCON P-502, stemming from disputes regarding work performed on the Kilo Wharf Extension for the Department of the Navy at the Commander Naval Regional Marianas, Main Base, Guam. A decision is central to the Debtor's instant bankruptcy case, however, the decision on the CDA Claims has been pushed back to June of 2016. As June 29, 2016, a decision had not been received. About International Bridge Corporation International Bridge Corporation, a contractor for government projects in the South Pacific and Guam, sought Chapter 11 protection (Bankr. D. Kan. Case No. 15-20951) in Kansas City on May 7, 2015. Robert Toelkes, the sole shareholder and manager, signed the petition. The Debtor disclosed total assets of $17.4 million and total debt of $27.4 million. The case is assigned to Judge Robert D. Berger. The Debtor tapped Wesley F. Smith, Esq., at Stevens & Brand, LLP, as its counsel. Wyatt A. Hoch, Esq., at Foulston Siefkin, LLP, serves as the Debtor's special litigation counsel. Robert G. Nath, at Robert G. Nath, PLLC, represents the Debtor as special tax counsel. INVENTIV HEALTH: Files Copy of Presentation Materials with SEC -------------------------------------------------------------- As previously disclosed on a current report on Form 8-K filed with the Securities Exchange Commission on Aug. 3, 2016, inVentiv Health, Inc. will discuss the Company's financial results for the first quarter of 2016 during a conference call at 3:00 p.m. Eastern Time on Aug. 12, 2016. During this conference call, the Company intends to use a presentation, a copy of which is available for free at https://is.gd/EEIhgG About inVentiv Health inVentiv Health, Inc., is privately owned by inVentiv Group Holdings, Inc., an organization sponsored by affiliates of Thomas H. Lee Partners, L.P., Liberty Lane Partners and members of the inVentiv Health management team. inVentiv Health is a top-tier professional services organization that accelerates the clinical and commercial success of biopharmaceutical companies worldwide. The Company's combined Clinical Research Organization and Contract Commercial Organization helps clients improve their performance to deliver much-needed therapies to market. With 13,000 employees providing services to clients in 70 countries, inVentiv Health designs best practices, processes and systems to enable clients to successfully navigate an increasingly complex environment. - See more at: http://www.inventivhealth.com/our-company/investors#sthash.Oi040G6G.dpuf Inventiv Health reported a net loss attributable to the Company of $151 million on $1.99 billion of net revenues for the year ended Dec. 31, 2015, compared to a net loss attributable to the Company of $190 million on $1.80 billion of net revenues for the year ended Dec. 31, 2014. As of June 30, 2016, Inventiv had $2.16 billion in total assets, $2.95 billion in total liabilities and a total stockholders' deficit of $791 million. * * * As reported by the TCR on May 22, 2015, Moody's Investors Service affirmed the Caa1 Corporate Family Rating and Caa1-PD Probability of Default Rating of inVentiv Health, Inc. as well as all of the instrument ratings. The Caa1 rating reflects inVentiv's very high leverage, history of negative free cash flow and significant interest burden which will make a default event likely if the company does not significantly improve its EBITDA performance well ahead of 2018, when all of the company's debt matures. The TCR reported on Dec. 12, 2012, that Standard & Poor's Ratings Services affirmed its 'B-' corporate credit rating on Burlington, Mass.-based contract research organization (CRO) inVentiv Health Inc. ISAACS AUTOMOTIVE: Hires David Lord as Attorney ----------------------------------------------- Isaac's Automotive, Inc. seeks authorization from the U.S. Bankruptcy Court for the Southern District of Mississippi to employ David L. Lord and Associates, P.A. as attorney. The Debtor requires the firm to: (a) advise the Debtor as to its rights, duties, and powers as a Debtor in Possession; (b) prepare and file the statements, schedules, plans, and other documents and pleadings necessary to be filed by the Debtor in this case, specifically excluding adversary documents and pleadings, and to prepare and negotiate one or more plans of reorganization for the Debtor; (c) represent the Debtor at all hearings, meeting of creditors, conferences, trials, and other proceedings in this case, specifically excluding adversary proceedings; and (d) perform such other legal services as may be necessary in connection with this case, specifically excluding adversary proceedings. The firm will be paid at these hourly rates: Attorney $275 Paralegal $85 The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. David L. Lord 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 Debtor and its estate. The firm can be reached at: David L. Lord, Esq. DAVID L. LORD AND ASSOCIATES, P.A. 1819 24th Avenue Gulfport, MS 39501 Tel: (228) 868-5667 Fax: (228) 868-2554 E-mail: lordlawfirm@bellsouth.net Isaac's Automotive, Inc. filed a Chapter 11 bankruptcy petition (Bankr. S.D. Miss. Case No. 16-50695) on April 26, 2016. Bankruptcy Judge Katharine M Samson presides over the case. J-TASTE INC: Unsecured Creditors to Get 14% Under Plan ------------------------------------------------------ J-Taste, Inc., filed a Plan of Reorganization and Disclosure Statement, which propose to pay 14% to Class 4 - General Unsecured Claims amounting to $32,886.29. The Debtor expects to pay general unsecured creditors $4,604.08 in principal, plus 4.25% interest in 60 monthly installments of $85.31 each, commencing on the effective date of the Plan. Class 1 - General Priority Unsecured Class with total claims of $10,780.01, consisting of SIF Claim POC-6 ($8,089.97) and Treasury Department Claim POC-8 ($2,690.04), will be unimpaired under the Plan and which will be paid in full plus 4.25% interest in 60 monthly installments of $199.75 each, commencing on the effective date of the Plan. Class 2 - Treasury Department Claim POC-9 with a total claim of $245,305.85 will be unimpaired and paid in full plus 4.25% interest in 59 monthly installments of $3,155.68 each and a final payment of $80,000.00, commencing on the effective date of the Plan. Class 3 - Unsecured Tax Claims, totaling $113,579.89 which will be impaired, and will be paid 14%. The Debtor expect to pay $15,901.18 in principal, plus 4.25% interest in 60 monthly installments of $294.64 each, commencing on the effective date of the Plan. Class 5 - Equity Interest Holders will retain their rights. Payments and distributions under the plan will be funded by the Debtor’s operations. A full-text copy of the Disclosure Statement is available at http://bankrupt.com/misc/prb15-10243-MCF11-51.pdf Attorney for the Debtor: Hector Eduardo Pedrosa-Luna, Esq. P.O. Box 9023963 San Juan, PR 00902-3963 Tel.: 787-920-7983 Fax: 787-754-1109 Email: hectorpedrosa@gmail.com About J-Taste, Inc. J-Taste, Inc. filed a Chapter 11 petition (Bankr. D.P.R. Case No. 15-10243), on December 24, 2015. The Debtor's counsel is Hector Eduardo Pedrosa-Luna, Esq. of the Law Offices of Hector Eduardo Pedrosa-Luna. J. CREW: Bank Debt Trades at 30% Off ------------------------------------ Participations in a syndicated loan under J. Crew is a borrower traded in the secondary market at 70.46 cents-on-the-dollar during the week ended Friday, July 29, 2016, according to data compiled by LSTA/Thomson Reuters MTM Pricing. This represents an increase of 1.19 percentage points from the previous week. J. Crew pays 300 basis points above LIBOR to borrow under the $1.56 billion facility. The bank loan matures on Feb. 27, 2021 and carries Moody's B2 rating and Standard & Poor's B- rating. The loan is one of the biggest gainers and losers among 247 widely quoted syndicated loans with five or more bids in secondary trading for the week ended July 29. JAMES DEWAYNE MANNING: Bid for Appointment of Examiner Granted -------------------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of Alabama entered an order granting James Dewayne Manning's request for the appointment of a Chapter 11 examiner with Expanded Powers, or in the alternative, a Chapter 11 Trustee with limited powers. Following the order, the Court directed the Bankruptcy Administrator to appoint a disinterested person to serve as Examiner with expanded powers for the Debtors' Chapter 11 estate, subject to the Court's approval. The Examiner have the following duties and authority: (A) to receive and to collect the funds held by the Chapter 13 Trustee upon conversion of this case to Chapter 11; (B) to examine and to monitor the Debtors' employment and income; (C) to collect and to receive funds by payroll deduction from the employer of the Debtor, James Manning, or direct from the Debtors; (D) to hold any funds collected pending further Order of the Court; and (E) all other duties as directed by future Order of the Court. The U.S. Bankruptcy Judge Clifton R. Jessup, Jr., notified that the Examiner must post a bond in an amount reasonably acceptable to the Bankruptcy Administrator. Pursuant to 11 U.S.C. Sec. 330 and 331, the compensation shall be proposed by the Bankruptcy Administrator and approved by the Court. The bankruptcy case is In the Matter of: James Dewayne Manning and Kelly A. Manning, Case No. 16-81059-CRJ-13 (Bankr. Ala.) JAMUS CORP: Gets Court Approval of Plan to Exit Bankruptcy ---------------------------------------------------------- A U.S. bankruptcy court on August 9 approved the plan of JAMUS Corp. to exit Chapter 11 protection. The U.S. Bankruptcy Court for the Northern District of Texas gave the thumbs-up to the plan after finding that it satisfies the requirements for confirmation under section 1129 of the Bankruptcy Code. In the same filing, the court also gave final approval to the disclosure statement explaining the restructuring plan. The plan proposes to pay Class 3 general unsecured claims in full over 60 months following the effective date of the plan. These claims are estimated at $103,295, according to court filings. About JAMUS Corp. JAMUS Corp. filed a Chapter 11 petition (Bankr. N.D. Tex. Case No. 16-40505) on February 1, 2016. The Debtor is represented by Joyce W. Lindauer Attorney, PLLC. The case is assigned to Judge Mark X. Mullin. JOSEPH KOKROKO: Hearing to Consider Disclosures Set for Sept. 20 ---------------------------------------------------------------- The Hon. Scott H. Gan of the U.S. Bankruptcy Court for the District of Arizona will hold a hearing on Sept. 20, 2016, at 1:30 p.m. to consider approval of the First Amended Disclosure Statement filed by Joseph E. Kokroko on July 18, 2016. As reported by the Troubled Company Reporter on July 28, 2016, the Debtor filed an Amended Plan of Reorganization and Amended Disclosure Statement. The Debtor estimated unsecured claims totaling $33,628, which does not include any deficiency amounts for secured creditors. The class is unimpaired. Under the Amended Plan, all allowed and approved claims under this Class shall be paid the sum of $1,050 on a quarterly basis, pro rata, from the Debtors' disposable income, to be paid on the last day of each quarter, starting with the quarter ending after the Effective Date and anticipated to be Dec. 31, 2016, and continuing each quarter thereinafter for five years. About Joseph Kokroko Joseph Kokroko is originally from Ghana, West Africa and English is his second language. He came to the U.S. with his wife who worked for the Peace Corp. He and his wife had two children and also adopted one child. Over a period of years the Debtor has acquired nine residential properties. All of the properties are rented and two were recently used as an Assisted Living Facility. The Chapter 11 case was filed to prevent a foreclosure on his property at 2927 E. 4th Street, Tucson, AZ. Joseph E. Kokroko filed a Chapter 11 petition (Bankr. D. Ariz. Case No. 16-06782) on June 15, 2016. Eric Slocum Sparks, Esq., at Eric Slocum Sparks PC, serves as counsel to the Debtor. KCC INTERNATIONAL: 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 KCC International LLC. KCC International LLC owns a real estate in which it operates the La Quinta Hotel Tomball located at 14000 Medical Complex Drive, Tomball, Texas. The Debtor sought protection under Chapter 11 of the Bankruptcy Code (Bankr. S. D. Texas Case No. 16-33375) on July 4, 2016. The petition was signed by Willis Pumphrey, sole member. The case is assigned to Judge Karen K. Brown. At the time of the filing, the Debtor estimated its assets at $1 million to $10 million and debts at $10 million to $50 million. KIDS ONLY II: Court to Take Up Liquidating Plan on Sept. 13 ----------------------------------------------------------- A U.S. bankruptcy court will hold a hearing on September 13 to consider approval of the Chapter 11 plan of liquidation proposed by RREF II PEBPLA, LLC for Kids Only II of Lafayette, LLC. The U.S. Bankruptcy Court for the Western District of Louisiana will hold the hearing at 10:00 a.m., at the Bankruptcy Court, Suite 100, 214 Jefferson Street, Lafayette, Louisiana. The court will also consider at the hearing the final approval of the disclosure statement, which it conditionally approved on August 8. The court order set a September 6 deadline for creditors to cast their votes and file their objections. Under the proposed plan, all creditors are expected to receive 100% of their allowed claims. About Kids Only II of Lafayette Kids Only II of Lafayette, LLC, and Kids Only III of Lafayette, LLC, provide childcare services. Kids Only II of Lafayette, LLC filed a Chapter 11 bankruptcy petition (Bankr. W.D. La. Case No. 15-51354) on October 20, 2015. Kids Only III of Lafayette, LLC, filed a separate Chapter 11 petition (Bankr. W.D. La. Case No. 15-51355) on October 20, 2015. Both Debtors are represented by Thomas E. St. Germain, Esq. -- ecf@weinlaw.com -- at WEINSTEIN LAW FIRM. RREF II PEBP-LA, LLC, a secured creditor, is represented by: Laura F. Ashley, Esq. Jones Walker LLP 201 St. Charles Avenue, 49th Floor New Orleans, LA 70170-5100 Telephone: (504) 582-8000 E-mail: lashley@joneswalker.com LA4EVER, LLC: Can Use Cash Collateral Until Aug. 31 --------------------------------------------------- Judge Julie A. Manning of the U.S. Bankruptcy Court for the District of Connecticut authorized LA4Ever, LLC and LLCD, LLC to use the cash collateral until August 31, 2016. The cash collateral consists of rentals or other funds in which Southport Secured Lending Fund, LLC may assert secured interests. Judge Manning authorized the Debtors to use cash collateral up to the total amount of expenses projected to be $5,084, as well as $9,967 for payment to Southport Secured Lending Fund. The approved Budget for the month of August 2016, provides for total expenses in the amount of $3,202 for Debtor LA4Ever, LLC, and $1,881 for Debtor LLCD, LLC. Judge Manning granted Southport Secured Lending Fund security interests in all post-petition rents and leases, subordinate to all fees that will become due to the Office of the U.S. Trustee. A continued hearing on the Debtors' use of cash collateral is scheduled on Aug. 31, 2016 at 11:00 a.m. A full-text copy of the Order, dated August 3, 2016, is available at https://is.gd/SpYTEt About LA4Ever, LLC. LA4Ever, LLC and LLCD, LLC sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D. Conn. Lead Case No. 15-30546) on April 8, 2015. The petition was signed by Daphne Benas, member. The Debtors are represented by Carl T. Gulliver, Esq., at Coan Lewendon Gulliver & Miltenberger, LLC. The case is assigned to Judge Julie A. Manning. At the time of the filing, LA4Ever estimated its assets at $500,000 to $1 million and debt at $1 million to $10 million. LLCD estimated its assets and debts at $500,000 to $1 million. LAST CALL GUARANTOR: Files for Bankruptcy to Pursue Sale -------------------------------------------------------- The owner of restaurant chains Fox & Hound, Bailey's Sports Grille, and Champps sought Chapter 11 protection in the U.S. Bankruptcy Court for the District of Delaware to continue discussions regarding a possible sale transaction. Last Call Guarantor, LLC and eight of its subsidiaries filed the bankruptcy cases after experiencing liquidity issues and begun a process to market their businesses or assets for sale, which process is ongoing. This is the Debtors' second trip to bankruptcy in less than three years. On Dec. 15, 2013, the former owners of Fox & Hound, F&H Corp, and its 41 affiliated debtors, filed bankruptcy cases in Delaware. F&H Corp's sale process failed to produce an acceptable third-party bid, and as a result, on Feb. 28, 2014, the Bankruptcy Court approved a going-concern sale to Cerberus Business Finance, LLC, F&H Corp's junior lender. The previous Chapter 11 cases are still pending before Judge Gross. DWV Maple Investments I, Ltd., purchased the equity of Last Call Holdings, LLC from Cerberus in May 2016. According to the Debtors, after the acquisition of the businesses, they embarked on an ambitious plan to revitalize their concepts and further enhance synergies among the various concepts by renovating the existing Fox & Hound locations and converting many of the Champps locations to Fox and Hound locations. The Debtors maintained that the refreshing and remodeling of the Fox & Hound locations proved to be more expensive than originally planned, and even when completed, failed to result in a significant increase in business. "Despite the Debtors' efforts to stabilize the businesses, revitalize their concepts, implement operational improvements and address certain other foundational issues, the Debtors have been unable to grow the businesses back to a level that supports the existing capital structure," said Roy Messing, chief restructuring officer of the Debtors. "The Debtors are in default under their secured debt and have experienced material liquidity constraints, which have increased the financial strain on the Debtors," he added. As of the Petition Date, the Debtors have outstanding debt obligations in the aggregate principal amount of approximately $117 million, consisting primarily of (a) approximately $75.4 million in secured debt under a first lien senior secured credit facility, (b) approximately $36 million under a second lien secured credit facility, and (c) approximately $6 million owed to vendors, landlords and other unsecured creditors, as disclosed in Court documents. Prior to the Petition Date, the Debtors engaged in discussions with General Electric Capital Corporation, as agent to the lenders under a credit agreement dated March 12, 2014, on behalf of certain of the first lien lenders, regarding various options, including a bridge loan or post-petition financing, to permit the Debtors to finalize their sale process inside or outside of a bankruptcy case or to otherwise reach agreement on a path forward. However, no agreement was reached and those discussions are ongoing. The Debtors intend to secure the Court's authority to use cash collateral on an interim basis in order to stabilize their business, avoid an immediate closure and wind-down of the businesses, allow them to pay employees for accrued and unpaid wages and allow them additional time to attempt to negotiate a consensual path forward with the Lenders. Headquartered in Dallas, Texas, and with operations in 25 states, the Debtors operate 48 Fox & Hound locations, nine Bailey's locations, and 23 Champps locations. The Debtors have franchise agreements with five franchisees for Champps Restaurants. The Debtors have more than 4,700 full and part-time employees. Last Call, which owns directly or indirectly all other Debtors, estimated assets in the range of $10 million to $50 million and liabilities of $100 million to $500 million. Greenberg Traurig, LLP represents the Debtors as counsel. Prior to the Petition Date, the Debtors hired SSG Capital Advisors, LLC to commence a sale process to evaluate various parties' interest in acquiring the Debtors' businesses. Judge Kevin Gross is assigned to the cases. LAST CALL GUARANTOR: Hires Epiq as Claims & Noticing Agent ---------------------------------------------------------- Last Call Guarantor, LLC, et al., asked the Bankruptcy Court to authorize their employment of Epiq Systems, Inc. as claims and noticing agent, effective nunc pro tunc to the Petition Date, in order to assume full responsibility for the distribution of notices and the maintenance, processing and docketing of proofs of claim filed in their cases. Although the Debtors have not yet filed their schedules of assets and liabilities, they anticipate that there will be in excess of several thousand entities to be noticed. In view of the number of anticipated claimants and the complexity of their businesses, the Debtors maintained that the appointment of a claims and noticing agent is both necessary and in the best interests of both their estates and their creditors. By appointing the Claims and Noticing Agent as the claims and noticing agent in these Chapter 11 cases, the distribution of notices and the processing of claims will be expedited, and the office of this clerk of this Court will be relieved of the administrative burden of processing what may be an overwhelming number of claims. The Debtors request that the undisputed fees and expenses incurred by the Claims and Noticing Agent in the performance of the services be treated as administrative expenses of their estates and be paid in the ordinary course of business without further application to or order of the Court. The Debtors also agree to reimburse Epiq for reasonable out-of-pocket expenses expenses including, among other things, print or copy re-runs, supplies, long distance phone calls, travel expenses and overtime expenses. Epiq's Claim Administration Hourly Rates are as follows: Title Rates ----- ------- Clerical/Administrative Support $25-$45 Case Manager $50-$80 Sr. Case Manager/Dr. of Case Management $75-$150 IT / Programming $35-$95 Consultant/ Sr. Consultant $145-$170 Director/Vice President $190 Executive Vice President, Solicitation $200 Prior to the Petition Date, the Debtors provided the Claims and Noticing Agent a retainer of $10,000. The Claims and Noticing Agent seeks to apply the retainer first to all prepetition invoices, and thereafter, to have the retainer replenished to the original retainer amount and hold the retainer under the Engagement Agreement during the Chapter 11 cases as security for the payment of fees and expenses incurred under the Engagement Agreement. The Debtors will indemnify, defend and hold Epiq, its affiliates, parent, and each such entity's officers, members, directors, agents, representatives, managers, consultants and employees harmless from and against any and all losses, claims, damages, liabilities, costs to which any indemnified person may become subject or involved in any capacity arising out of or relating to this Agreement or Epiq's rendering of services, other than losses resulting solely from Epiq's gross negligence or willful misconduct. Epiq represents that it is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code with respect to the matters upon which it is to be engaged. About Last Call Guarantor Headquartered in Dallas, Texas, and with operations in 25 states, the Debtors own and operate sports bar and casual family-dining restaurants under three well-recognized concepts, namely Fox & Hound, Bailey's Sports Grille, and Champps. The Debtors operate 48 Fox & Hound locations, nine Bailey's locations, and 23 Champps locations. The Debtors have franchise agreements with five franchisees for Champps Restaurants. The Debtors have more than 4,700 full and part-time employees. On Aug. 10, 2016, each of Last Call Guarantor, LLC, Last Call Holding Co. I, Inc., Last Call Operating Co. I, Inc., F&H Restaurants IP, Inc., KS Last Call Inc., Last Call Holding Co. II, Inc., Last Call Operating Co. II, Inc., Champps Restaurants IP, Inc. and MD Last Call Inc. filed a Chapter 11 bankruptcy petition (Bankr. D. Del. Case Nos. 16-11844 to 16-11852). The petitions were signed by Roy Messing as chief restructuring officer. Last Call Guarantor estimated assets in the range of $10 million to $50 million and liabilities of $100 million to $500 million. Greenberg Traurig, LLP represents the Debtors as counsel. Judge Kevin Gross is assigned to the cases. LES CHEVEUX: Case Summary & 20 Largest Unsecured Creditors ---------------------------------------------------------- Debtor: Les Cheveux Salon, Inc. dba Les Cheveux Salon & Day Spa dba Les Cheveux School of Cosmetology & Aesthetics dba Hair Etc. 306 McClanahan Street Roanoke, VA 24014 Case No.: 16-71058 Chapter 11 Petition Date: August 10, 2016 Court: United States Bankruptcy Court Western District of Virginia (Roanoke) Judge: Hon. Paul M. Black Debtor's Counsel: Andrew S Goldstein, Esq. MAGEE GOLDSTEIN LASKY & SAYERS, P.C. PO Box 404 Roanoke, VA 24003 Tel: 540 343-9800 E-mail: agoldstein@mglspc.com - and - Garren R. Laymon, Esq. MAGEE GOLDSTEIN LASKY & SAYERS, PC P. O. Box 404 Roanoke, VA 24003 Tel: (540) 343-9800 Fax: (540)343-9898 E-mail: glaymon@mglspc.com Estimated Assets: $500,000 to $1 million Estimated Liabilities: $1 million to $10 million The petition was signed by Sherman D. Argenbright, president. A copy of the Debtor's list of 20 largest unsecured creditors is available for free at http://bankrupt.com/misc/vawb16-71058.pdf LIQUIDMETAL TECHNOLOGIES: Incurs $824,000 Net Loss in 2nd Quarter ----------------------------------------------------------------- Liquidmetal Technologies, Inc., filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss and comprehensive loss of $824,000 on $34,000 of total revenue for the three months ended June 30, 2016, compared to a net loss and comprehensive loss of $2.08 million on $39,000 of total revenue for the same period last year. For the six months ended June 30, 2016, the Company reported a net loss and comprehensive loss of $10 million on $202,000 of total revenue compared to a net loss and comprehensive loss of $4.56 million on $65,000 of total revenue for the six months ended June 30, 2015. As of June 30, 2016, Liquidmetal had $11.11 million in total assets, $5.74 million in total liabilities and $5.36 million in total shareholders' equity. "We anticipate that our current capital resources, when considering expected losses from operations and excluding the potential additional $55.0 million investment by the Investor, will be sufficient to fund our operations through the middle of 2017. We have a relatively limited history of producing bulk amorphous alloy products and components on a mass-production scale. Furthermore, the ability of future contract manufacturers to produce our products or components in desired quantities and at commercially reasonable prices is uncertain and is dependent on a variety of factors that are outside of our control, including the nature and design of the product or component, the customer's specifications, and required delivery timelines. These factors will likely require that we make further equity sales under the 2016 Purchase Agreement, raise additional funds by other means, or pursue other strategic initiatives to support our operations beyond the middle of 2017. There is no assurance that we will be able to make further equity sales under the 2016 Purchase Agreement or raise additional funds by other means on acceptable terms, if at all. If we were to make further equity sales under the 2016 Purchase Agreement or to raise additional funds through other means by issuing securities, existing shareholders will be diluted. If funding is insufficient at any time in the future, we may be required to alter or reduce the scope of our operations or to cease operations entirely. Uncertainty as to the outcome of these factors raises substantial doubt about our ability to continue as a going concern," the Company states in the report. A full-text copy of the Form 10-Q is available for free at: https://is.gd/f73W62 About Liquidmetal Technologies Based in Rancho Santa Margarita, Cal., Liquidmetal Technologies, Inc., and its subsidiaries are in the business of developing, manufacturing, and marketing products made from amorphous alloys. Liquidmetal Technologies markets and sells Liquidmetal(R) alloy industrial coatings and also manufactures, markets and sells products and components from bulk Liquidmetal alloys that can be incorporated into the finished goods of its customers across a variety of industries. The Company also partners with third- party licensees and distributors to develop and commercialize Liquidmetal alloy products. Liquidmetal reported a net loss and comprehensive loss of $7.31 million on $125,000 of total revenue for the year ended Dec. 31, 2015, compared to a net loss and comprehensive loss of $6.55 million on $603,000 of total revenue for the year ended Dec. 31, 2014. SingerLewak LLP, in Los Angeles, California, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2015, stating that the Company has suffered recurring losses from operations, has negative cash flows from operations and has an accumulated deficit. This raises substantial doubt about the Company's ability to continue as a going concern. LITE SOLAR: Taps Leslie Cohen as Bankruptcy Counsel --------------------------------------------------- Lite Solar Corp. seeks authorization from the U.S. Bankruptcy Court for the Central District of California to employ Leslie Cohen Law, PC as bankruptcy counsel, effective July 27, 2016. The Debtor requires Leslie Cohen to: (a) advise Applicant regarding its rights and responsibilities as a Chapter 11 debtor and a debtor in possession, specifically including the requirements of the U.S. Bankruptcy Code, the Federal Rules of Bankruptcy Procedure, the Local Bankruptcy Rules, and how the application of such provisions relates to the administration of Applicant's estate; (b) advise and assist Applicant in connection with the preparation of certain documents to be filed with the Bankruptcy Court and/or the Office of the U.S. Trustee; (c) represent Applicant, with respect to bankruptcy issues, in the context of its pending Chapter 11 case, and represent Applicant in contested matters as would affect the administration of the Debtor's case, except to the extent that any such proceeding pertains to the excluded services described above or requires expertise in areas of law outside of the Firm's expertise; (d) advise, assist and represent Applicant in the negotiation, formulation and attempted confirmation of a plan of reorganization; (e) render services for the purpose of pursuing, litigating and/or settling litigation as may be necessary and appropriate in connection with this case, including without limitation objections to claims, adversary proceedings to recover preferences and fraudulent conveyances, and all associated matters. The firm will be paid at these hourly rates: Leslie Cohen $575 J'aime Williams $380 Senior Contract Attorneys $350 Brian Link $290 The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. The Firm received a pre-petition retainer of $72,000.10 which was paid by Debtor. Of this amount, $14,866.90 was expended on pre-petition services and the petition filing fee. The balance of $57,133.10 has been deposited in a segregated trust account per the requirement of the United States Trustee. Once the retainer is reduced to $5,000, it must be replenished to $15,000, to be paid from estate sources, or if not allowed, non-estate sources specifically from Ranbir Sahni personally, through loans to the estate or as capital contributions and bills kept current from such non-estate sources, to be billed on a monthly basis. Leslie A. Cohen, president and sole shareholder of the firm, assured the Court that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtors and their estates. The firm can be reached at: Leslie A. Cohen, Esq. J'aime K. Williams Esq. Brian A. Link, Esq. LESLIE COHEN LAW, PC 506 Santa Monica Blvd., Suite 200 Santa Monica, CA 90401 Tel: (310) 394-5900 Fax: (310) 394-9280 E-mail: leslie@lesliecohenlaw.com jaime@lesliecohenlaw.com brian@lesliecohenlaw.com About Lite Solar Corp Lite Solar Corp., based in Long Beach, Calif., filed a Chapter 11 petition (Bankr. C.D. Calif. Case No. 16-19896) on July 27, 2016. The Hon. Sheri Bluebond presides over the case. Leslie A. Cohen, Esq. as bankruptcy counsel. In its petition, the Debtor estimated $1 million to $10 million in assets and liabilities. The petition was signed by Ranbir S. Sahni, president. LIVE OAK: Authorized to Use IRS Cash Collateral on Interim Basis ---------------------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of Texas authorized Live Oak Lounge, LLC, to use cash collateral on an interim basis. The Court acknowledged that an immediate and critical need exists for the Debtor to use cash collateral, as it does not have sufficient income and financing to pay its operating costs otherwise, resulting in serious and irreparable harm to the Debtor, the bankruptcy estate, and property securing debts. The Debtor was authorized to pay prepetition compensation in connection with ongoing operations to current employees. The Debtor was also authorized to pay U.S. Trustee fees incurred during the case. The Court allowed the Debtor to use the Internal Revenue Service's asserted cash collateral, as well as the property in which the IRS has asserted a secured interest The Debtor's use of the cash collateral of the IRS is limited only for ordinary business expenses, consistent with the Debtor's cash flow projections. The IRS was granted adequate protection in the form of replacement liens on post-petition cash collateral and property of the Debtors, and their proceeds, of the same validity, extent and priority of the IRS’ liens prior to the Petition Date. A full-text copy of the Interim Order, dated August 3, 2016, is available at https://is.gd/D7tpqP About Live Oak Lounge Live Oak Lounge, LLC is a Texas Limited liability company formed to provide an independent music venue, bar and restaurant in Fort Worth, TX. On July 8, 2016, Live Oak Lounge, LLC commenced a Chapter 11 case (Bankr. N.D. Tex. Case No. 16-42659). The petition was signed by Robert Johnson, managing member. The bankruptcy case was filed because Debtor's past mismanagement resulted in an IRS tax lien exceeding $200,000. The Debtor is represented by Warren V. Norred, Esq., at Norred Law, PLLC. The Debtor estimated assets at $0 to $500,000 and liabilities at $500,001 to $1 million at the time of the filing. LONG-DEI LIU: Has Until Dec. 8 to Use Cash Collateral ----------------------------------------------------- Judge Theodor C. Albert of the U.S. Bankruptcy Court for the Central District of California, authorized Long-Dei Liu to use cash collateral until Dec. 8, 2016. Judge Albert granted the Debtor's Judgment Creditor a replacement lien in the Debtor's post-petition non-exempt cash, in the same extent, validity, and priority up to the amount of the cash collateral existing as of the Petition Date. A full-text copy of the Order, dated Aug. 3, 2016, is available at https://is.gd/yulEkF About Long-Dei Liu Orange, Calif.-based Long-Dei Liu filed for Chapter 11 bankruptcy protection (Bankr. C.D. Cal. Case No. 16-11588). Judge Theodor Albert presides over the case. Long-Dei Liu, MD, is a single practitioner who has practiced obstetrics and gynecology since 1981. LPATH INC: Incurs $2.66 Million Net Loss in Second Quarter ---------------------------------------------------------- LPath, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $2.66 million on $9,243 of revenues for the three months ended June 30, 2016, compared to a net loss of $2.67 million on $13,329 of revenues for the three months ended June 30, 2015. For the six months ended June 30, 2016, the Company reported a net loss of $4.60 million on $18,851 of revenues compared to a net loss of $5.44 million on $26,964 of revenues for the same period during the prior year. As of June 30, 2016, LPath had $7.06 million in total assets, $800,818 in total liabilities, and $6.26 million in total stockholders' equity. "As of June 30, 2016, the company had cash and cash equivalents totaling $4.7 million. We may also receive limited additional funding from future awards of grants from NIH or DoD. Potential additional near term sources of cash may include the proceeds from the sale of our stock under the MLV agreement. As they are currently planned, however, we do not believe that our existing cash resources will be sufficient to meet our operating plan for the full 12 month period after the date of this filing. To help extend our operating window, we have reduced our headcount and limited our research and product development activities. Based on our current plans and available resources, we believe we can maintain our current operations through November 30, 2016. We estimate that at November 30, 2016 the costs to wind-down our operations in an orderly manner would be approximately $2.0 million. As a result, to continue to fund our ongoing operations, including our drug discovery and development projects, beyond November 2016, we would need to secure significant additional capital. Moreover, our expenses may exceed our current plans and expectations, which would require us to secure additional capital or wind-down our operations sooner than anticipated. "Our Board of Directors has engaged a financial advisory firm to explore our available strategic alternatives, including possible mergers and business combinations, a sale of part or all of our assets, collaboration and licensing arrangements and/or equity and debt financings. This strategic process is both active and ongoing, and includes a range of interactions with potential transaction counterparties. We believe it is in our stockholders' best interests at this time to continue to pursue one or more of these transactions, or other strategic alternatives we may identify in the near term. Although we are actively pursuing our strategic alternatives, there is no assurance that we will be able to successfully negotiate and consummate a transaction on a timely basis, or at all. Further, our expenses may exceed our current plans and expectations, which could require us to complete a transaction or wind-down our operations sooner than anticipated," the Company stated in the report. A full-text copy of the Form 10-Q is available for free at: https://is.gd/FTK5ux About LPath San Diego, Calif.-based Lpath, Inc. is a biotechnology company focused on the discovery and development of lipidomic-based therapeutics, an emerging field of medical science whereby bioactive lipids are targeted to treat human diseases. LPath reported a net loss of $10.01 million on $1.59 million of total revenues for the year ended Dec. 31, 2015, compared to a net loss of $16.55 million on $5.08 million of total revenues for the year ended Dec. 31, 2014. Moss Adams LLP, in San Diego, California, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2015, citing that the Company's recurring losses and negative operating cash flows raise substantial doubt about the Company's ability to continue as a going concern. LYONDELL CHEMICAL: $6.3B Clawback Claim Reinstated -------------------------------------------------- Judge Denise Cote of the United States District Court for the Southern District of New York reversed the bankruptcy court's November 18, 2015 decision and reinstated the intentional fraudulent conveyance claim filed by Lyondell Chemical Company's unsecured creditors, through their trustee Edward S. Weisfelner. Lyondell's unsecured creditors asked for reinstatement of their claim that Lyondell engaged in an international fraudulent transfer in connection with Lyondell's 2007 leveraged buyout. The claim, which is brought pursuant to 11 U.S.C. section 548(a)(1)(A), sought to claw back approximately $6.3 billion in distributions made to Lyondell shareholders through the LBO. The case is EDWARD S. WEISFELNER, as Litigation Trustee of the LB Litigation Trust Trustee, v. HOFMANN, et al., Shareholders, No. 16cv518 (DLC) (S.D.N.Y.), relating to In Re: LYONDELL CHEMICAL CO., et al., Debtors. A full-text copy of Judge Cote's July 27, 2016 opinion and order is available at https://is.gd/Pe6Fvf from Leagle.com. Edward S. Weisfelner, Appellant, represented by May Orenstein -- morenstein@brownrudnick.com -- Brown Rudnick LLP & Sigmund Samuel Wissner-Gross -- swissnergross@brownrudnick.com -- Brown Rudnick LLP. Doft and Co., Inc., Elisabeth H. Doft, MJR Partners, RBC Dominion Securities, HBK Master Fund L.P., Affiliate of Mutual Fund 12, Affiliate of Broker-Dealer 1, Affiliate of Broker-Dealer 2, Affiliate of Broker-Dealer 3, Affiliate of Corporation 1, Corporation 5, Corporation 6, Affiliate of Mutual Fund 7, Fund 5, Fund 6, Fund 7, Fund 8, Fund 9, Fund 10, Fund 11, Fund 12, Fund 13, Fund 14, BellSouth Corporation Representable Employees Health Care Trust- Retirees, BellSouth Corporation RFA VEBA Trust, NBCN, Inc., Affiliate of Mutual Fund 10, Bank 3, Bank 4, Bank 5, F/A/O FNY SEC/HLW Group, Appellees, represented by Philip David Anker -- philip.anker@wilmerhale.com -- Wilmer Cutler Pickering Hale and Dorr LLP, Ross Eric Firsenbaum -- ross.firsenbaum@wilmerhale.com -- Wilmer Cutler Pickering Hale and Dorr LLP, Andrew Easton Glantz -- andrew.glantz@wilmerhale.com -- Wilmer Cutler Pickering Hale & Dorr LLP, Ari Joseph Savitzky -- ari.savitzky@wilmerhale.com -- Wilmer Cutler Pickering Hale & Dorr LLP, Hanna A. Baek -- hanna.baek@wilmerhale.com -- Wilmer Cutler Pickering Hale and Dorr & Michael A. Guippone -- michael.guippone@wilmerhale.com -- Wilmer Cutler Pickering Hale & Dorr LLP. Alfred R Hoffmann Charles Schwab & Co Inc Cust IRA Contributory, Appellee, represented by Sandra Dawn Grannum -- sandra.grannum@dbr.com -- Drinker Biddle & Reath, LLP. Alpine Associates, Appellee, represented by Jeanette Rodriguez, Thompson Hine LLP, Joseph William Muccia -- joe.muccia@thompsonhine.com -- Thompson Hine LLP, Norman Arthur Bloch -- norman.bloch@thompsonhine.com -- Thompson Hine LLP & Shaun David McElhenny -- shaun.mcelhenny@thompsonhine.com -- Thompson Hine LLP. Arbor Place Limited Partnership, Appellee, represented by William A. Rome -- war@robinsonbrog.com -- Robinson Brog Leinwand Greene Genovese & Gluck PC. Bellsouth Group Life Trust - S& A/K/A Bellsouth Corporation RFA Veba Trust, BellSouth Healthcare S&P 400 A/K/A BellSouth Corporation Representable Employees Health Care Trust-Retirees, Broker-Dealer 1, Broker-Dealer 2, Broker-Dealer 3, Corporation 1, Doft & Co., Inc. Firm Account, First NY Securities / Britally Capital A/K/A First New York Securities, LLC, Fund 4, Individual 15, Appellees, represented by Ari Joseph Savitzky, Wilmer Cutler Pickering Hale & Dorr LLP, Hanna A. Baek, Wilmer Cutler Pickering Hale and Dorr, Peter J. Macdonald, Wilmer Cutler Pickering Hale and Dorr LLP, Philip David Anker, Wilmer Cutler Pickering Hale and Dorr LLP & Ross Eric Firsenbaum, Wilmer Cutler Pickering Hale and Dorr LLP. Bernard v Fultz Trustee U/W Anderson B Kibble, Appellee, represented by Conrad K. Chiu, Pryor Cashman LLP. Cato Enterprises LLC Arbitrage Account, Appellee, represented by Craig Scott Hilliard, Stark & Stark, P.C.. Corporation 2, Appellee, represented by David Barry Schwartz, Norton Rose Fulbright US LLP. Corporation 4, Appellee, represented by Brian David Koosed, K&L Gates LLP, Richard S. Miller, K&L Gates LLP & Robert T. Honeywell, K&L Gates LLP. Credit Agricole Securities (USA) Inc. f/k/a Calyon Securities (USA) Inc., Appellee, represented by Ana M. Alfonso, Willkie Farr & Gallagher LLP. Denis Patrick Kelleher, Esq. PLLC, Appellee, represented by Denis Patrick Kelleher, Jr., Clayman & Rosenberg. Diane L. Abbey, Appellee, represented by Karin Elizabeth Fisch, Abbey Spanier, LLP. Donald M Balcuns Living Trust Donald M Balcuns and Jennie Anne Balcuns, Appellee, represented by Jonathan S. Pasternak, DelBello Donnellan Weingarten Wise & Wiederkehr, L.L.P.. Douglas Light & Judith Light Trustees of the Douglas M. & Judith A. Light Rev U/A Dated 02/06/1995, Appellee, represented by Bradley S. Defoe, Varnum LLP, pro hac vice. Dudley C. Mecum, Family Foundation 1, Fund 2, Harold S. Hook, HTB Investments LLC, Individual 11, Appellees, represented by John F. Higgins, Jackson Lewis P.C.. Equity Overlay Fund LLC, Appellee, represented by Richard S. Miller, K&L Gates LLP, Robert T. Honeywell, K&L Gates LLP & Ryan M. Tosi, K & L Gates LLP. Family Foundation 2, Appellee, represented by Christopher Charles Gartman, Hughes Hubbard & Reed LLP, David Parker, Kleinberg, Kaplan,Wolff & Cohen,P.C., Kathryn Anne Coleman, Hughes Hubbard & Reed LLP & Matthew J. Gold, Kleinberg,Kaplan,Wolff & Cohen,P.C.. Farallon Capital, Appellee, represented by David Parker, Kleinberg, Kaplan,Wolff & Cohen,P.C. & Matthew J. Gold, Kleinberg, Kaplan,Wolff & Cohen,P.C.. Fifth Third Bank, Appellee, represented by Conrad K. Chiu, Pryor Cashman LLP & Ronald S. Beacher, Day Pitney, L.L.P.. Financial Advisor 3, Appellee, represented by Anthony Sharett, Baker & Hostetler LLP, pro hac vice, Jacqueline Matthews, Baker & Hostetler LLP, pro hac vice & James Kevin Haney, Wong Fleming, P.C.. Fund 1, Fund 23, Appellees, represented by Bonnie K. Steingart, Fried, Frank, Harris, Shriver & Jacobson LLP & Julia V. Smolyanskiy, Fried, Frank, Harris, Shriver & Jacobson LLP. Fund 33, Appellee, represented by David Steve Mordkoff, Proskauer Rose LLP, Harry Frischer, Proskauer Rose LLP & Stephen Leonard Ratner, Proskauer Rose LLP. Gabelli Associates, Appellee, represented by Andrew J. Entwistle, Entwistle & Cappucci LLP & Vincent Roger Cappucci, Entwistle & Cappucci LLP. Geza Szayer Paulette Szayer, Appellee, represented by William A. Rome, Robinson Brog Leinwand Greene Genovese & Gluck PC. Harvest AA Capital LP, Harvest Capital LP, Appellee, represented by Brian Theodore Kohn, Schulte, Roth & Zabel LLP. Individual 13, Individual 17, Individual 20, Individual 21, Individual 25, Appellees, represented by Christopher Charles Gartman, Hughes Hubbard & Reed LLP & Kathryn Anne Coleman, Hughes Hubbard & Reed LLP. Individual 19, Appellee, represented by Christopher Charles Gartman, Hughes Hubbard & Reed LLP, David Parker, Kleinberg,Kaplan,Wolff & Cohen,P.C., Kathryn Anne Coleman, Hughes Hubbard & Reed LLP & Matthew J. Gold, Kleinberg,Kaplan,Wolff & Cohen,P.C.. Individual 22, Appellee, represented by Christopher Charles Gartman, Hughes Hubbard & Reed LLP, John F. Higgins, Jackson Lewis P.C. & Kathryn Anne Coleman, Hughes Hubbard & Reed LLP. Individual 23, Appellee, represented by Bonnie K. Steingart, Fried, Frank, Harris, Shriver & Jacobson LLP, Christopher Charles Gartman, Hughes Hubbard & Reed LLP, Julia V. Smolyanskiy, Fried, Frank, Harris, Shriver & Jacobson LLP & Kathryn Anne Coleman, Hughes Hubbard & Reed LLP. Individual 24, Appellee, represented by Bonnie K. Steingart, Fried, Frank, Harris, Shriver & Jacobson LLP & Julia V. Smolyanskiy, Fried, Frank, Harris, Shriver & Jacobson LLP. Individual 26, Appellee, represented by David Parker, Kleinberg,Kaplan,Wolff & Cohen,P.C. & Matthew J. Gold, Kleinberg,Kaplan,Wolff & Cohen,P.C.. Individual 27, Appellee, represented by Sandra Dawn Grannum, Drinker Biddle & Reath, LLP. Individual 3, Appellee, represented by Christopher Charles Gartman, Hughes Hubbard & Reed LLP, David Parker, Kleinberg,Kaplan,Wolff & Cohen,P.C.,Kathryn Anne Coleman, Hughes Hubbard & Reed LLP & Matthew J. Gold, Kleinberg,Kaplan,Wolff & Cohen,P.C.. Individual 4, Appellee, represented by David Parker, Kleinberg,Kaplan,Wolff & Cohen,P.C. & Matthew J. Gold, Kleinberg,Kaplan,Wolff & Cohen,P.C.. Individual 5, Appellee, represented by David Parker, Kleinberg,Kaplan,Wolff & Cohen,P.C. & Matthew J. Gold, Kleinberg,Kaplan,Wolff & Cohen,P.C.. Individual 6, Appellee, represented by Christopher Charles Gartman, Hughes Hubbard & Reed LLP & Kathryn Anne Coleman, Hughes Hubbard & Reed LLP. Individual 8, Appellee, represented by Christopher Charles Gartman, Hughes Hubbard & Reed LLP & Kathryn Anne Coleman, Hughes Hubbard & Reed LLP. Individual 9, Appellee, represented by Christopher Charles Gartman, Hughes Hubbard & Reed LLP & Kathryn Anne Coleman, Hughes Hubbard & Reed LLP. James Floyd Bisset Charles Schwab & Co Inc Cust IRA Contributory, Appellee, represented by Sandra Dawn Grannum, Drinker Biddle & Reath, LLP. James Siegel, Appellee, represented by Jonathan S. Pasternak, DelBello Donnellan Weingarten Wise & Wiederkehr, L.L.P.. John Deere Pension Trust, Appellee, represented by Richard S. Miller, K&L Gates LLP & Ryan M. Tosi, K & L Gates LLP. Joseph DiBenedetto Jr Trustee of the Joseph DiBenedetto Jr MD Inc Def Cont U/A Dated 10/01/84 Account 1, Appellee, represented by Sandra Dawn Grannum, Drinker Biddle & Reath, LLP. KDC Merger Arbitrage Fund, LP, Appellee, represented by Guy Petrillo, Petrillo Klein & Boxer LLP & Daniel Zachary Goldman, Petrillo Klein LLP. Kermit R. Meade, Appellee, represented by Sandra Dawn Grannum, Drinker Biddle & Reath, LLP. Kirk E Heyne & Karen A Twitchell Ten/Com, Appellee, represented by John F. Higgins, Jackson Lewis P.C.. Lampost Blue Chip Fund LP, Appellee, represented by Sandra Dawn Grannum, Drinker Biddle & Reath, LLP. Litespeed Master Fund Ltd., Appellee, represented by David Parker, Kleinberg,Kaplan,Wolff & Cohen,P.C. & Matthew J. Gold, Kleinberg,Kaplan,Wolff & Cohen,P.C.. Jennie Anne Balcuns and Donald M Balcuns, Appellee, represented byJonathan S. Pasternak, DelBello Donnellan Weingarten Wise & Wiederkehr, L.L.P.. M Hakan & R Salkin Trustees of the Michael J. Hakan Charitable Re U/A Dated 12/20/1995, Appellee, represented by William A. Rome, Robinson Brog Leinwand Greene Genovese & Gluck PC. Mary B Ord UTA Charles Schwab & Co Inc IRA Contributory Dated 10/06/91, Appellee, represented by Sandra Dawn Grannum, Drinker Biddle & Reath, LLP. Michael Jarrett IRA, Appellee, represented by Sandra Dawn Grannum, Drinker Biddle & Reath, LLP. Mutual Fund 10, Appellee, represented by Ari Joseph Savitzky, Wilmer Cutler Pickering Hale & Dorr LLP, Hanna A. Baek, Wilmer Cutler Pickering Hale and Dorr, Peter J. Macdonald, Wilmer Cutler Pickering Hale and Dorr LLP, Philip David Anker, Wilmer Cutler Pickering Hale and Dorr LLP & Ross Eric Firsenbaum, Wilmer Cutler Pickering Hale and Dorr LLP. Mutual Fund 12, Appellee, represented by Ari Joseph Savitzky, Wilmer Cutler Pickering Hale & Dorr LLP, Hanna A. Baek, Wilmer Cutler Pickering Hale and Dorr, Peter J. Macdonald, Wilmer Cutler Pickering Hale and Dorr LLP, Philip David Anker, Wilmer Cutler Pickering Hale and Dorr LLP & Ross Eric Firsenbaum, Wilmer Cutler Pickering Hale and Dorr LLP. Mutual Fund 20, Mutual Fund 21, Mutual Fund 22, Mutual Fund 23, Mutual Fund 24, Mutual Fund 25, Mutual Fund 26, Mutual Fund 27, Mutual Fund 28, Mutual Fund 29, Appellees, represented by Michael S. Doluisio, Dechert LLP, pro hac vice. Mutual Fund 5, Mutual Fund 6, Appellees, represented by Alan W. Kornberg, Paul, Weiss, Rifkind, Wharton & Garrison LLP. Mutual Fund 7, NBCN Inc., Appellees, represented by Ari Joseph Savitzky, Wilmer Cutler Pickering Hale & Dorr LLP, Hanna A. Baek, Wilmer Cutler Pickering Hale and Dorr, Peter J. Macdonald, Wilmer Cutler Pickering Hale and Dorr LLP, Philip David Anker, Wilmer Cutler Pickering Hale and Dorr LLP & Ross Eric Firsenbaum, Wilmer Cutler Pickering Hale and Dorr LLP. Neil T Eigen & Patricia S Eigen Jt Ten, Appellee, represented by Eduardo Jorge Glas, Tseitlin & Glas, P.C.. Neil T Eigen Charles Schwab & Co Inc Cust IRA Rollover, Appellee, represented by Eduardo Jorge Glas, Tseitlin & Glas, P.C.. Noonday Capital Partners LLC, Appellee, represented by David Parker, Kleinberg,Kaplan,Wolff & Cohen,P.C. & Matthew J. Gold, Kleinberg,Kaplan,Wolff & Cohen,P.C.. Ohio Carpenters MidCap, Appellee, represented by John Winship Read, Vorys, Sater, Seymour & pease & Robert Alan Koenig, Shumaker, Loop & Kendrick, LLP. OP&F / Intech, Pension Fund 1, Pension Fund 2, Appellee, represented by Daniel R. Swetnam, Schwartz, Kelm, Warren & Ramirez, pro hac vice. Pension Fund 4, Pension Fund 5, Appellee, represented by Patrick Sibley, Pryor Cashman LLP. Pension Fund 6, Appellee, represented by Paulina Stamatelos, New York State Attorney General's Office. Peter Randall Zierhut Gayle M Zierhut Jt Ten, Appellee, represented byWilliam A. Rome, Robinson Brog Leinwand Greene Genovese & Gluck PC. Primevest Financial Services, Appellee, represented by William Hao, Alston & Bird, LLP. PSAM Europe Master Fund, Ltd., Appellee, represented by Ana M. Alfonso, Willkie Farr & Gallagher LLP. PSAM World Arbritrage Master Fund Ltd., Appellee, represented by Ana M. Alfonso, Willkie Farr & Gallagher LLP. Rangeley Capital Partners LP, Appellee, represented by Mark Joseph Hyland, Seward & Kissel LLP. Redbourn Partners Ltd., Appellee, represented by Richard S. Miller, K&L Gates LLP & Ryan M. Tosi, K & L Gates LLP. Robert Emery & Dana Emery, Trustees of the Robert L & Dana M Emery Family U/A Dated 06/22/1998, Appellee, represented by Sandra Dawn Grannum, Drinker Biddle & Reath, LLP. Sacramento Employees Retirement System Russell, Appellee, represented byMelvin Arnold Brosterman, Stroock & Stroock & Lavan LLP & Patrick Nicholas Petrocelli, Stroock & Stroock & Lavan LLP. Sandra A Smith Ten/Com, Appellee, represented by John F. Higgins, Jackson Lewis P.C.. Sanford Saul Wadler, Appellee, represented by Robert N. H. Christmas, Nixon Peabody LLP. Sano Investments LLC, Appellee, represented by Douglas R. Hirsch, Sadis & Goldberg. Skylands Special Investment LLC, Appellee, represented by Robert Anthony Gretch, Kirkland & Ellis LLP. State Teachers Retirement System, Appellee, represented by Conrad K. Chiu, Pryor Cashman LLP & Ronald S. Beacher, Day Pitney, L.L.P.. Sumitomo Trust & Banking, Appellee, represented by Jordan E. Stern, Becker, Glynn, Muffly, Chassin & Hosinski LLP. Thomas Gwinford Barton Charles Schwab & Co Inc Cust IRA Rollover, Appellee, represented by Sandra Dawn Grannum, Drinker Biddle & Reath, LLP. Timber Hill LLC, Appellee, represented by Guy Petrillo, Petrillo Klein & Boxer LLP & Daniel Zachary Goldman, Petrillo Klein LLP. Timothy Ord & Mary B Ord Jt Ten, Appellee, represented by Sandra Dawn Grannum, Drinker Biddle & Reath, LLP. Timothy Ord UTA Charles Schwab & Co Inc IRA Contributory Dated 10/04/91, Appellee, represented by Sandra Dawn Grannum, Drinker Biddle & Reath, LLP. Timothy Ord UTA Charles Schwab & Co Inc IRA Rollover Dated 01/14/97, Appellee, represented by Sandra Dawn Grannum, Drinker Biddle & Reath, LLP. Tinicum Partners, L.P., Appellee, represented by David Parker, Kleinberg,Kaplan,Wolff & Cohen,P.C. & Matthew J. Gold, Kleinberg,Kaplan,Wolff & Cohen,P.C.. Touradji Diversified Master Fund Ltd., Appellee, represented by Ana M. Alfonso, Willkie Farr & Gallagher LLP. Touradji Global Resources Master Fund, Ltd., Appellee, represented by Ana M. Alfonso, Willkie Farr & Gallagher LLP. Track Data Corporation, Appellee, represented by Robert P. Bramnik, Duane Morris LLC. Trust 1, Appellee, represented by Bonnie K. Steingart, Fried, Frank, Harris, Shriver & Jacobson LLP & Julia V. Smolyanskiy, Fried, Frank, Harris, Shriver & Jacobson LLP. Trust 10, Appellee, represented by David Parker, Kleinberg,Kaplan,Wolff & Cohen,P.C. & Matthew J. Gold, Kleinberg,Kaplan,Wolff & Cohen,P.C.. Trust 11, Appellee, represented by David Parker, Kleinberg,Kaplan,Wolff & Cohen,P.C. & Matthew J. Gold, Kleinberg,Kaplan,Wolff & Cohen,P.C.. Trust 2, Appellee, represented by Bonnie K. Steingart, Fried, Frank, Harris, Shriver & Jacobson LLP & Julia V. Smolyanskiy, Fried, Frank, Harris, Shriver & Jacobson LLP. Trust 3, Appellee, represented by Courtney Elizabeth Scott, Tressler, LLP. Trust 5, Appellee, represented by David Parker, Kleinberg,Kaplan,Wolff & Cohen,P.C. & Matthew J. Gold, Kleinberg,Kaplan,Wolff & Cohen,P.C.. Trust 6, Appellee, represented by Bonnie K. Steingart, Fried, Frank, Harris, Shriver & Jacobson LLP & Julia V. Smolyanskiy, Fried, Frank, Harris, Shriver & Jacobson LLP. Trust 8, Appellee, represented by David Parker, Kleinberg,Kaplan,Wolff & Cohen,P.C. & Matthew J. Gold, Kleinberg,Kaplan,Wolff & Cohen,P.C.. Trust 9, Appellee, represented by Sandra Dawn Grannum, Drinker Biddle & Reath, LLP. Virginia L. Lyon, Appellee, represented by Robert E. Bartkus, McCusker, Anselmi, Rosen, Carvelli, P.C.. VTrader Pro, LLC, Appellee, represented by Richard Milton Asche, Litman, Asche Lupkin, Gioiella & Bassin, LLP. Wabash Harvest Partners LP, Appellee, represented by Brian Theodore Kohn, Schulte, Roth & Zabel LLP & David Keith Momborquette, Schulte Roth & Zabel LLP. William J. Harkinson & Sarah A Harkinson Ten/Com, Appellee, represented by John F. Higgins, Jackson Lewis P.C.. William J Hughes Charles Schwab & Co Inc Cust IRA Contributory, Appellee, represented by Sandra Dawn Grannum, Drinker Biddle & Reath, LLP. Working Womans Home Association, Appellee, represented by Courtney Elizabeth Scott, Tressler, LLP. Yield Strategies Fund II, LP, Appellee, represented by Richard S. Miller, K&L Gates LLP, Robert T. Honeywell, K&L Gates LLP & Ryan M. Tosi, K & L Gates LLP. ZLP Master Opportunity Fund Ltd., Appellee, represented by David A. Pisciotta, Troutman Sanders LLP, Hugh M. McDonald, Troutman Sanders LLP & Jonathan David Forstot, Troutman Sanders LLP. Coastview Equity Partners, Appellee, represented by John F. Higgins, Jackson Lewis P.C.. Garth Heitshusen, Appellee, represented by John F. Higgins, Jackson Lewis P.C.. Stephen HInchliffe, Appellee, represented by John F. Higgins, Jackson Lewis P.C.. Ann Hinchliffe, Appellee, represented by John F. Higgins, Jackson Lewis P.C.. Arthur and Nancy Lee, Appellee, represented by Bruce I. Goldstein, McCusker, Anselmi, Rosen,Carvelli & PC. Taliesin Capital Partners LP, ADR Provider, represented by Dianne Frances Coffino, Covington & Burling LLP. About Lyondell Chemical LyondellBasell Industries is one of the world's largest polymers, petrochemicals and fuels companies. Luxembourg-based Basell AF and Lyondell Chemical Company merged operations in 2007 to form LyondellBasell Industries, the world's third largest independent chemical company. LyondellBasell became saddled with debt as part of the US$12.7 billion merger. Len Blavatnik's Access Industries owned the Company prior to its bankruptcy filing. On Jan. 6, 2009, LyondellBasell Industries' U.S. operations, led by Lyondell Chemical Co., and one of its European holding companies -- Basell Germany Holdings GmbH -- filed voluntary petitions to reorganize under Chapter 11 of the U.S. Bankruptcy Code to facilitate a restructuring of the company's debts. The case is In re Lyondell Chemical Company, et al., Bankr. S.D.N.Y. Lead Case No. 09-10023). Seventy-nine Lyondell entities filed for Chapter 11. Luxembourg-based LyondellBasell Industries AF S.C.A. and another affiliate were voluntarily added to Lyondell Chemical's reorganization filing under Chapter 11 protection on April 24, 2009. Deryck A. Palmer, Esq., at Cadwalader, Wickersham & Taft LLP, in New York, served as the Debtors' bankruptcy counsel. Evercore Partners served as financial advisors, and Alix Partners and its subsidiary AP Services LLC, served as restructuring advisors. AlixPartners' Kevin M. McShea acted as the Debtors' Chief Restructuring Officer. Clifford Chance LLP served as restructuring advisors to the European entities. LyondellBasell emerged from Chapter 11 bankruptcy protection in May 2010, with a plan that provides the Company with US$3 billion of opening liquidity. A new parent company, LyondellBasell Industries N.V., incorporated in the Netherlands, is the successor of the former parent company, LyondellBasell Industries AF S.C.A., a Luxembourg company that is no longer part of LyondellBasell. LyondellBasell Industries N.V. owns and operates substantially the same businesses as the previous parent company, including subsidiaries that were not involved in the bankruptcy cases. LyondellBasell's corporate seat is Rotterdam, Netherlands, with administrative offices in Houston and Rotterdam. LYONDELL CHEMICAL: Shareholders' Bids to Junk Trustee's Suit OK'd ----------------------------------------------------------------- In the case captioned EDWARD S. WEISFELNER, AS TRUSTEE OF THE LB CREDITOR TRUST, Plaintiff, v. FUND 1, et al., Defendants. EDWARD S. WEISFELNER, AS TRUSTEE OF THE LB CREDITOR TRUST, Plaintiff, v. STUART REICHMAN, et al., Defendants, Adv. Pro. No. 10-04609 (MG)., 12-01570 (MG) (Bankr. S.D.N.Y.), Judge Martin Glenn of the United States Bankruptcy Court for the Southern District of New York granted the shareholder defendants' motions to dismiss, or, in the alternative, for a stay in the adversary proceeding. According to Judge Glenn, the facts in this case are clearly decided by In re Tribune Co. Fraudulent Conveyance Litig., 818 F.3d 98 (2d Cir. 2016). In fact, the Second Circuit stated that "[s]ection 546(e) clearly covers payments, such as those at issue [in Tribune], by commercial firms to financial intermediaries to purchase shares from the firm's shareholders." Moreover, the Second Circuit expressly stated that the extraordinary breadth of section 546(e) covers cash out payments to shareholders in an LBO. Id. at 122 (stating "concern has been expressed that LBOs are different from other transactions in ways penitent to the Bankruptcy Code. However, the language of Section 546(e) does not exempt from its protection payments by firms to intermediaries to fund ensuing payments to shareholders for stock." (internal citations omitted).) Accordingly, the Trustee's constructive fraudulent conveyance claims in these actions are barred by the safe harbor of section 546(e). The alternate relief seeking a stay of the action, requested in the Motions and also, separately, by the Trustee is DENIED, Judge Glenn ruled. Tribune clearly controls the disposition of these Motions. There is no "circuit split" with respect to the legal principles set forth in Tribune. But see PAH Litigation Trust (In re Physiotherapy Holdings, Inc.), Adv. Proc. No. 15-51238 (KG), 2016 WL 3611831, at *7 (Bankr. D. Del. Jun. 20, 2016) ("Although Tribune II settled the split in the Second Circuit, it is nevertheless not binding on this Court. The Court finds the reasoning in Lyondell more persuasive and therefore adopts its holding."). Trial of the Lyondell actions has been scheduled for October 2016. The Court concludes that there is no reason to stay the actions awaiting the filing of a certiorari petition and action by the Supreme Court in Tribune. Judge Glenn, however, held that because granting the motions to dismiss will result in the dismissal of these cases with prejudice, a bankruptcy court does not have authority to enter a final order or judgment in these cases absent consent of the parties, which has not been given. Therefore, the Order will be treated as proposed findings of fact and conclusions of law, subject to the objection procedure in Federal Rule of Bankruptcy Procedure 9033. Final judgment must be entered by the district court. The bankruptcy case is In re: LYONDELL CHEMICAL COMPANY, et al., Chapter 11, Debtors, Case No. 09-10023 (MG), Jointly Administered (Bankr. S.D.N.Y.). A full-text copy of Judge Glenn's July 20, 2016 order is available at https://is.gd/U2CHSB from Leagle.com. Edward S. Weisfelner, as Trustee of the LB Creditor Trust, is represented by: Sigmund S. Wissner-Gross, Esq. BROWN RUDNICK, LLP 7 Times Square New York, NY 10036 Tel: (212)209-4800 Fax: (212)209-4801 Email: swissnergross@brownrudnick.com Center for Foot & Ankle Surgery LLC U/A Dtd 1/01/1999 (George Joseph Fahoury Jr., Trustee) is represented by: Sandra D. Grannum, Esq. DRINKER BIDDLE & REATH LLP 600 Campus Dr. Florham Park, NJ 07932-1047 Tel: (973)549-7000 Fax: (973)360-9831 Email: sandra.grannum@dbr.com Glenn H. Roth is represented by: Philip D. Anker, Esq. Ross E. Firsenbaum, Esq. Peter J. Macdonald, Esq. Joel Miller, Esq. Jessica Rachel Wheeler, Esq. Jeremy Winer, Esq. WILMER CUTLER PICKERING HALE & DORR L.L. 7 World Trade Center 250 Greenwich Street New York, NY 10007 Tel: (212)230-8800 Fax: (212)230-8888 Email: philip.anker@wilmerhale.com ross.firsenbaum@wilmerhale.com peter.macdonald@wilmerhale.com John Joseph Bollwark, Charles Schwab & Co., Inc. Cust. Ira Rollover are represented by: Anthony N. Gaeta, Esq. LEVINE DESANTIS, P.C. 530 Morris Avenue, Suite 300 Springfield, NJ 07081 Tel: (973)376-9050 Fax: (973)379-6898 About Lyondell Chemical LyondellBasell Industries is one of the world's largest polymers, petrochemicals and fuels companies. Luxembourg-based Basell AF and Lyondell Chemical Company merged operations in 2007 to form LyondellBasell Industries, the world's third largest independent chemical company. LyondellBasell became saddled with debt as part of the US$12.7 billion merger. Len Blavatnik's Access Industries owned the Company prior to its bankruptcy filing. On Jan. 6, 2009, LyondellBasell Industries' U.S. operations, led by Lyondell Chemical Co., and one of its European holding companies -- Basell Germany Holdings GmbH -- filed voluntary petitions to reorganize under Chapter 11 of the U.S. Bankruptcy Code to facilitate a restructuring of the company's debts. The case is In re Lyondell Chemical Company, et al., Bankr. S.D.N.Y. Lead Case No. 09-10023). Seventy-nine Lyondell entities filed for Chapter 11. Luxembourg-based LyondellBasell Industries AF S.C.A. and another affiliate were voluntarily added to Lyondell Chemical's reorganization filing under Chapter 11 protection on April 24, 2009. Deryck A. Palmer, Esq., at Cadwalader, Wickersham & Taft LLP, in New York, served as the Debtors' bankruptcy counsel. Evercore Partners served as financial advisors, and Alix Partners and its subsidiary AP Services LLC, served as restructuring advisors. AlixPartners' Kevin M. McShea acted as the Debtors' Chief Restructuring Officer. Clifford Chance LLP served as restructuring advisors to the European entities. LyondellBasell emerged from Chapter 11 bankruptcy protection in May 2010, with a plan that provides the Company with US$3 billion of opening liquidity. A new parent company, LyondellBasell Industries N.V., incorporated in the Netherlands, is the successor of the former parent company, LyondellBasell Industries AF S.C.A., a Luxembourg company that is no longer part of LyondellBasell. LyondellBasell Industries N.V. owns and operates substantially the same businesses as the previous parent company, including subsidiaries that were not involved in the bankruptcy cases. LyondellBasell's corporate seat is Rotterdam, Netherlands, with administrative offices in Houston and Rotterdam. MANUFACTURERS ASSOCIATES: Can Use Nuvo Cash Until Aug. 31 --------------------------------------------------------- Judge Julie A. Manning of the U.S. Bankruptcy Court for the District of Connecticut authorized Manufacturers Associates, Inc., to use cash collateral until Aug. 31, 2016. The Debtor's secured creditor, Nuvo Bank and Trust Company, has claimed a duly perfected, non-avoidable security interest in the Debtor's personal and fixture property, and all goods and equipment. Judge Manning authorized the Debtor to use Nuvo Bank's cash collateral, in an amount not to exceed $112,000, to meet all necessary business expenses incurred in the ordinary course of its business and the statutory quarterly chapter 11 fees payable to the Office of the U.S. Trustee. The approved expense estimates provides for cost of goods sold in the amount of $40,190. Nuvo Bank was granted replacement liens in all the Debtor's after-acquired property, of the same extent and priority to that which Nuvo Bank and Trust Company enjoyed with regard to the estate's property as of the Petition Date. The Debtor was directed to make an adequate protection payment to Nuvo Bank in the amount of $3,750 for the period of July 31, 2016 through Aug. 31, 2016. Judge Manning acknowledged that it essential to the Debtor's business and operations to use cash generated from its manufacturing business so as to continue to pay ordinary course business expenses. She further acknowledged that without court authority to use the cash collateral, the Debtor will suffer harm and be forced to terminate operations and abort any chance for successful reorganization. A hearing on the continued use of cash collateral is scheduled on Aug. 31, 2016 at 11:00 a.m. A full-text copy of the Order, dated August 3, 2016, is available at https://is.gd/S7ZPON About Manufacturers Associates Manufacturers Associates, Inc., based in West Haven, Conn., filed a Chapter 11 petition (Bankr. D. Conn. Case No. 15-31832) on Nov. 2, 2015. The petition was signed by Anthony Parillo, Jr., president. The Debtor is represented by Peter L. Ressler, Esq., at Groob Ressler & Mulqueen, P.C. The case is assigned to Judge Julie A. Manning. At the time of the filing, the Debtor estimated assets at $0 to $50,000 and liabilities at $1 million to $10 million. MD AMERICA: Moody's Withdraws Caa2 Corporate Family Ratings ----------------------------------------------------------- Moody's Investors Service has withdrawn all assigned ratings for MD America Energy, LLC, including the Caa2 Corporate Family Rating, following the company's repayment of all of its outstanding rated debt. Issuer: MD America Energy, LLC Ratings Withdrawn: -- Corporate Family Rating: Withdrawn, previously rated Caa2 -- Probability of Default Rating: Withdrawn, previously rated Caa2-PD -- Speculative Grade Liquidity Rating: Withdrawn, previously rated SGL-3 -- $525MM Senior Secured Term Loan due 2019: Withdrawn, previously rated Caa2 (LGD3) Outlook Actions: -- Outlook: Changed to Rating Withdrawn from Positive RATINGS RATIONALE MD America Energy, LLC recently announced that the company had repaid the remainder of the $425 million debt outstanding on its second-lien term loan via a cash equity infusion from its Chinese parent company, MeiDu Energy Corporation. The debt pay off completes the $100 million payment that the independent E&P operator made in December 2014. MEDOMICS LLC: Needs Wells Fargo Approval to Use Cash Collateral --------------------------------------------------------------- Judge Neil W. Bason of the U.S. Bankruptcy Court for the Central District of California entered an order barring MEDomics, LLC. from using cash collateral. Judge Bason ordered the Debtor to provide secured creditors Wells Fargo Bank, N.A. and Socket Capital, LLC a written request to use any cash collateral, prior to using any cash collateral. He directed the Debtor to request a telephonic hearing with the Court, if the Debtor is unable to secure the consent of Wells Fargo Bank and Socket Capital for the use of cash collateral. Judge Bason held that should the Debtor, Wells Fargo Bank and Socket Capital may enter into a written stipulation which allows the Debtor to use cash collateral on a bi-weekly basis. A full-text copy of the Order, dated Aug. 3, 2016, is available at https://is.gd/uKrlFo Wells Fargo Bank, N.A., is represented by: Dennis F. Fabozzi, Esq. Edward J. Miller, Esq. FABOZZI & MILLER, APC 41911 Fifth Street, Suite 200 Temecula, CA 92590 Telephone: (951) 296-1775 About MEDomics, LLC Azusa, Calif.-based MEDomics, LLC, provides genetic testing services. MEDomics, LLC, filed a Chapter 11 bankruptcy petition (Bankr. C.D. Cal. Case No. 16-14355) on April 5, 2016. The petition was signed by Steve Sommer as Managing Member. The Debtor estimated assets in the range of $500,000 to $1 million and estimated liabilities in the range of $1 million to $10 million. The Debtors have hired Illyssa Fogel, Esq., at Illyssa I. Fogel & Associates as counsel. Judge Neil W. Bason has been assigned the cases. MGM RESORTS: Offering $500-Mil. Senior Unsecured Notes Due 2026 --------------------------------------------------------------- MGM Growth Properties LLC, a subsidiary of MGM Resorts International, announced that its consolidated subsidiaries, MGM Growth Properties Operating Partnership LP and MGP Finance Co-Issuer, Inc., have priced $500 million in aggregate principal amount of 4.50% senior unsecured notes due 2026 in a private placement at par. The offering is expected to close on Aug. 12, 2016, subject to customary closing conditions. The Issuers plan to use the net proceeds to refinance amounts outstanding under the Issuer's revolving credit facility that were drawn in connection with the Company's acquisition of the real property of Borgata Hotel Casino and Spa from MGM Resorts International, which was completed on Aug. 1, 2016. Any remaining proceeds will be used for general corporate purposes. The notes proposed to be offered will not be registered under the Securities Act of 1933, as amended, or any state securities laws and may not be offered or sold in the United States or to any U.S. persons absent registration under the Securities Act, or pursuant to an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws. The notes will be offered only to "qualified institutional buyers" under Rule 144A of the Securities Act or, outside the United States, to persons other than "U.S. persons" in compliance with Regulation S under the Securities Act. About MGM Resorts MGM Resorts International (NYSE: MGM) a global hospitality company, operating a portfolio of destination resort brands including Bellagio, MGM Grand, Mandalay Bay and The Mirage. The Company also owns 51% of MGM China Holdings Limited, which owns the MGM Macau resort and casino and is in the process of developing a gaming resort in Cotai, and 50% of CityCenter in Las Vegas, which features ARIA resort and casino. For more information about MGM Resorts International, visit the Company's Web site at http://www.mgmresorts.com/ MGM Resorts reported a net loss attributable to the Company of $448 million in 2015, a net loss attributable to the Company of $150 million in 2014 and a net loss attributable to the Company of $172 million in 2013. As of Dec. 31, 2015, MGM Resorts had $25.2 billion in total assets, $17.5 billion in total liabilities and $7.76 billion in total stockholders' equity. * * * As reported by the TCR on Nov. 14, 2011, Standard & Poor's Ratings Services raised its corporate credit rating on MGM Resorts International to 'B-' from 'CCC+'. In March 2012, S&P revised the outlook to positive from stable. "The revision of our rating outlook to positive reflects strong performance in 2011 and our expectation that MGM will continue to benefit from the improving performance trends on the Las Vegas Strip," S&P said. In March 2012, Moody's Investors Service affirmed its B2 corporate family rating and probability of default rating. The affirmation of MGM's B2 Corporate Family Rating reflects Moody's view that positive lodging trends in Las Vegas will continue through 2012 which will help improve MGM's leverage and coverage metrics, albeit modestly. Additionally, the company's declaration of a $400 million dividend ($204 million to MGM) from its 51% owned Macau joint venture due to be paid shortly will also improve the company's liquidity profile. The ratings also consider MGM's recent bank amendment that resulted in about 50% of its $3.5 billion senior credit facility being extended one year from 2014 to 2015. As reported by the TCR on Sept. 29, 2014, Fitch Ratings has upgraded MGM Resorts International's (MGM) and MGM China Holdings Ltd's (MGM China) IDRs to 'B+' from 'B' and 'BB' from 'BB-', respectively. Fitch's upgrade of MGM's IDR to 'B+' and the Positive Outlook reflect the company's strong performance on the Las Vegas Strip and in Macau as well as Fitch's longer-term positive outlooks for these markets. MIKEY AND SUNSHINE: Taps Wells and Jarvis as Attorneys ------------------------------------------------------ Mikey and Sunshine, Inc. seeks authorization from the U.S. Bankruptcy Court for the Western District of Washington to employ Wells and Jarvis, P.S. as attorneys. The Debtor requires Wells and Jarvis to: (a) prepare schedules, records and reports as required by the Bankruptcy Rules, Interim Bankruptcy Rules and the Local Bankruptcy Rules; (b) prepare applications and proposed orders to be submitted to the court; (c) identify and prosecute claims and causes of action assertable by Applicant on behalf of the estate herein; (d) assist and advise the Debtor-In-Possession in performing its other official functions; and (e) protect and preserve the assets of the estate for the Debtor-In-Possession from the claims of secured creditors. Wells and Jarvis will be paid at these hourly rates: Jeffrey B. Wells $360 Emily A. Jarvis $360 Paralegal $150 Wells and Jarvis will also be reimbursed for reasonable out-of-pocket expenses incurred. The Debtor paid a retainer to Wells and Jarvis in the amount of $5,000 plus the filing fee of $1,717. Emily Jarvis and Jeffrey Wells 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. Wells and Jarvis can be reached at: Jeffrey B. Wells, Esq. Emily A. Jarvis, Esq. WELLS AND JARVIS, P.S. 502 Logan Building 500 Union Street Seattle, WA 98101-2332 Tel: (206) 624-0088 Fax: (206) 624-0086 Mikey and Sunshine Inc. sought protection under Chapter 11 of the Bankruptcy Code (Bankr. W.D. Wash. Case No. 16-13574) on July 7, 2016. The Debtor is represented by Emily A Jarvis, Esq., at Wells and Jarvis, P.S. MO'TREES LLC: Disclosure Statement Hearing Moved to Aug. 26 ----------------------------------------------------------- The Hon. Jerry C. Oldshue, Jr., of the U.S. Bankruptcy Court for the Northern District of Florida has rescheduled for Aug. 26, 2016, at 9:30 a.m., Central Time, the hearing to consider approval of the disclosure statement, which Mo'Trees, LLC, filed with the Chapter 11 plan on July 14, 2016. As reported by the Troubled Company Reporter on Aug. 2, 2016, the Court initially set the hearing for Aug. 19, at 2:00 p.m. (Central Time), to consider approval of the Disclosure Statement, which describes a restructuring plan proposes to pay unsecured creditors 100% of their claims. Aug. 19, 2016, is fixed as the last day for filing and serving written objections to the Disclosure Statement. About Mo'Trees LLC Mo'Trees, LLC sought protection under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Fla. Case No. 16-30442) on May 11, 2016. The petition was signed by James C. Moulton, manager. The case is assigned to Judge Jerry C. Oldshue, Jr. The Debtor is represented by Richard Michael Colbert, Esq., at Richard M. Colbert PLLC. At the time of the filing, the Debtor disclosed $8.78 million in total assets and $3.89 million in total liabilities. MO'TREES LLC: Farm Credit Opposes Approval of Disclosure Statement ------------------------------------------------------------------ Farm Credit of Northwest Florida, ACA, asked a U.S. bankruptcy court to deny approval of the disclosure statement detailing the Chapter 11 plan of reorganization of Mo'Trees, LLC. In a filing with the U.S. Bankruptcy Court for the Northern District of Florida, Farm Credit criticized the company for not providing "adequate information" in its disclosure statement. Farm Credit cited the lack of information about the proposed treatment of claims that are classified under the plan, including its claim against the company. "A review of the plan and the disclosure statement raises more questions than answers about the efforts of the Debtor to successfully reorganize," the company said. Farm Credit is represented by: John A. Anthony, Esq. Allison c. Doucette, Esq. Anthony & Partners LLC 201 N. Franklin Street, Suite 2800 Tampa, Florida 33602 Telephone: 813-273-5616 Telecopier: 813-221-4113 Email: janthony@anthonyandpartners.com Email: adoucette@anthonyandpartners.com About Mo'Trees LLC Mo'Trees, LLC sought protection under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Fla. Case No. 16-30442) on May 11, 2016. The petition was signed by James C. Moulton, manager. The case is assigned to Judge Jerry C. Oldshue Jr. The Debtor is represented by Richard Michael Colbert, Esq., at Richard M. Colbert PLLC. At the time of the filing, the Debtor disclosed $8.78 million in total assets and $3.89 million in total liabilities. MUELLER & DRURY: Disclosure Statement Hearing Set for Sept. 14 -------------------------------------------------------------- The Hon. Paul Sala of the U.S. Bankruptcy Court for the District of Arizona has scheduled for Sept. 14, 2016, at 10:00 a.m. the hearing to consider approval of the disclosure statement filed by Mueller & Drury Real Estate, L.L.C. The Debtor filed the Disclosure Statement, along with a Chapter 11 plan, on July 21, 2016. As reported by the Troubled Company Reporter on Aug. 9, 2016, the Debtor filed with the Court its proposed plan to exit Chapter 11 protection, which proposes that holders of Class 5 general unsecured claims be paid, pro rata, without interest, in conjunction with payments being made pursuant to the company's proposed payment schedule. About Mueller & Drury Real Estate Mueller & Drury Real Estate, L.L.C. sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D. Ariz. Case No. 15-12258) on Sept. 24, 2015. The petition was signed by Doug Drury, member. At the time of the filing, the Debtor disclosed $900,000 in assets and $1.56 million in liabilities. MURPHY OIL: Moody's Rates New $500MM Unsec. Notes Due 2024 'B1' --------------------------------------------------------------- Moody's Investors Service assigned a B1 rating to Murphy Oil Corporation's (Murphy) proposed $500 million senior unsecured notes due 2024. At the same time, Moody's upgraded Murphy's Speculative Grade Liquidity Rating to SGL-3 from SGL-4 and affirmed Murphy's Ba3 Corporate Family Rating (CFR), Ba3-PD Probability of Default Rating, and its B1 rated unsecured notes. The outlook has been changed to stable from negative. The proceeds from the proposed notes offering will be used for general corporate purposes, which may include the repayment of the company's 2.5% notes due 2017. "The stabilization of the rating outlook reflects Murphy's improved liquidity profile, including cash from the proposed bond issuance, along with its new revolving credit facility and the recently closed sale of its stake in Syncrude," commented Gretchen French, Moody's Vice President. Issuer: Murphy Oil Corporation Ratings Assigned: $500 Million Senior Unsecured Notes, Rated B1 (LGD 5) Rating Actions: -- Corporate Family Rating affirmed at Ba3 -- Probability of Default Rating affirmed at Ba3-PD -- Senior Unsecured Regular Bonds/Debentures affirmed at B1 (LGD 5) -- Speculative Grade Liquidity Rating, upgraded to SGL-3 from of SGL-4 -- Rating outlook, changed to Stable from Negative RATINGS RATIONALE The B1 ratings on Murphy's proposed notes are rated in-line with the existing B1 unsecured debt ratings of Murphy. Murphy's capital structure is comprised of an unsecured revolving credit facility and unsecured notes. The proposed notes, as well as Murphy's existing unsecured notes, do not benefit from upstream guarantees from operating subsidiaries, and as a result are structurally subordinated to the obligations of Murphy's subsidiaries, including its trade payables and its operating and capital leases (pension liabilities are at the holding company level). In addition, Murphy's new revolver benefits from certain upstream operating company guarantees from material subsidiaries. Because of this structural subordination, the unsecured notes are rated one-notch below the CFR. If the springing collateral trigger on Murphy's revolver were to become effective, Moody's would expect the notching of the unsecured notes to remain one notch below the CFR. The upgrade in Murphy's SGL rating to SGL-3 from SGL-4 reflects cash from the company's proposed $500 million bond offering, its new revolving credit facility, and the recently completed sale of its stake in Syncrude for C$937 million. These transactions, while coming with a modestly higher average interest burden, a smaller revolving credit facility with more restrictive covenants, and a reduction to Murphy's proved develop reserve base as a result of the Syncrude sale, will help to address a key liquidity concern regarding the company's bank and bond maturities in 2017. Net proceeds from the proposed bond offering and the undrawn revolver will help provide a liquidity cushion to repay Murphy's December 2017 maturity of $550 million in unsecured notes. Murphy's SGL-3 rating reflects an adequate liquidity profile through 2017, with weak cash flow from operations, an undrawn revolving credit facility, adequate covenant compliance cushion, and an unsecured capital structure. Once closed, Murphy's new bank credit facility will extend the maturity by two years, to June 2019, but with only aggregate commitments of $1.2 billion (down from prior commitments of $2 billion). Receipt of at least $400 million in bond proceeds is a condition to the revolver becoming effective. The new revolver is expected to close concurrently with the closing of the bond offering. Murphy will also retain $630 million of bank commitments until its 2011 credit facility expires in June 2017. As of June 30, 2016, Murphy's revolver was undrawn, with $88 million in letters of credit outstanding. Murphy is expected to maintain adequate, but limited, covenant compliance cushion under its new financial covenants, which include a debt / adjusted EBITDA ratio of no greater than 3.75x (net of the cash received from the proposed bond offering up until the maturity of the 2017 notes), and adjusted EBITDA / interest ratio of at least 2.5x, and the maintenance of minimum domestic liquidity (defined as cash in the US and Canada plus revolver availability less upcoming maturities in the next 365 days) of at least $500 million. The revolver is unsecured, but there is a springing collateral trigger if debt / adjusted EBITDA is greater than 3.25x on or after March 31, 2017. Murphy's Ba3 CFR reflects high financial leverage and a declining production profile through 2017. The company faces constrained cash flows, with a weak commodity price outlook through at least 2017, and a capital intensive asset base. Murphy has meaningful exposure to riskier offshore production, particularly in Malaysia and to a lesser extent in the deepwater Gulf of Mexico, and has a history of being offshore exploration focused, with inconsistent results. However, more recently, the company has focused on developing and growing lower risk, onshore land positions in the Eagle Ford in the US and Montney and Duvernay in Canada. Murphy's high exposure to liquids production and oil-linked sales of liquefied natural gas benefits its cash margins relative to its peers. The Ba3 CFR also recognizes the steps the company has taken to address the weak commodity price outlook, including reducing its dividend payout, curtailing capital spending, and pursuing asset sales in order to reduce debt. The rating outlook is stable and assumes Murphy is successful in maintaining sufficient liquidity through 2017. Murphy's ratings could be upgraded if the company is able to stabilize production declines, generate a leveraged full-cycle ratio above 1.0x, and maintain retained cash flow/debt above 15%. Murphy's ratings could be downgraded if retained cash flow/debt falls below 10%. The principal methodology used in these ratings was Global Independent Exploration and Production Industry published in December 2011. Murphy Oil Corporation is headquartered in El Dorado, Arkansas. MUSCLEPHARM CORP: Incurs $4.19 Million Net Loss in Second Quarter ----------------------------------------------------------------- MusclePharm Corporation filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $4.19 million on $32.9 million of net revenue for the three months ended June 30, 2016, compared to a net loss of $7.02 million on $50.5 million of net revenue for the three months ended June 30, 2015. For the six months ended June 30, 2016, compared to a net loss of $10.8 million on $75.8 million of net revenue compared to a net loss of $14.5 million on $91.8 million of net revenue for the same period last year. As of June 30,2016, MusclePharm had $50.6 million in total assets, $65.6 million in total liabilities, and a total stockholders' deficit of $15 million. Almost a year into the Company's restructuring, MusclePharm is pleased to announce the strategy is having its intended effect of streamlining costs while better positioning the Company for profitable growth. As previously announced, the Company has spent the past 12 months realigning the organization with our business needs and profitable operations, and delivery of product to all the channels we sell through. The Company's efforts include the sale of its subsidiary, BioZone Laboratories Inc., for $8.3 million, a reduction in headcount from 310 employees to approximately 100 employees, and the closure of five offices with two additional office closures planned for the third quarter of 2016, including an administration and finance office in Denver, CO and a distribution center in Pittsburg, CA. The Company is now rebuilding its team with expertise to align individuals with our customer-centric strategy, and has a strategic partnership with the parent of the buyer of BioZone to develop enhanced flavors and other product initiatives. The Company has also optimized product SKUs by reducing SKU count by 77%, including the exit from all ready-to-drink sports and energy drinks and other low-margin or unprofitable SKUs, while focusing on more profitable products. As the Company continues to execute its growth strategy and restructuring plan, it anticipates continued improvement in its operating margins and expense structure. The termination of the Arnold Schwarzenegger product-line licensing agreement, the elimination of unprofitable SKUs, the elimination of unprofitable licensing agreements, and the migration to new product suppliers have impacted revenue growth for the short-term. The Company anticipates revenue and gross margin to strengthen as it increases focus on its new products introduced during the fourth quarter of 2015 and its MusclePharm Sport Series products. "We're reengineering the business to where we're profitable," said Ryan Drexler, MusclePharm's interim chief executive officer, president and chairman of the Board of Directors. "It's about strategically aligning ourselves and building a strong foundation to create a legacy business around our most popular products." Mr. Drexler reiterated that the Company's strength is in its partnerships with key retailers and distributors, instead of endorsements involving costly and often unknown future financial commitments. "While results continue to reflect costs associated with the Company's repositioning, I believe we are setting up MusclePharm for a promising future of strong value creation," said Mr. Drexler. "We have streamlined the Company to get back to our baseline business of sales and marketing, while working closely with our contract manufacturers to ensure inventory is available to meet customer demand and reducing expensive inventory that was tying up critical capital. We have a laser focus on delivering product." The Company announced in June that it filed a counterclaim against Capstone Nutrition, alleging that Capstone fraudulently induced MusclePharm into a multi-year manufacturing contract by misrepresenting Capstone's ability to fulfill its obligations and concealing significant operational problems occurring at its facilities. The result of Capstone's actions included months of delivery delays, lost customers and damaged goodwill that cost MusclePharm tens of millions of dollars, according the Company's counterclaim. The Company is currently working with new manufacturing partners and has resumed production and distribution of products previously made by Capstone. "While the reduction in unprofitable sales will affect topline financial results in the short term, the long-term effect of the Company's restructuring efforts will provide for a stronger financial foundation going forward," said Mr. Drexler. "As I have previously stated, we are a sales and marketing organization, and that is where we want to focus. We are concentrating on our core competencies while maximizing our strategic partnerships and bringing more expertise to these areas." A full-text copy of the Form 10-Q is available for free at: https://is.gd/4L1ANJ About MusclePharm Headquartered in Denver, Colorado, MusclePharm Corporation (OTC BB: MSLP) -- http://www.muslepharm.com/-- is a healthy life- style company that develops and manufactures a full line of National Science Foundation approved nutritional supplements that are 100 percent free of banned substances. MusclePharm is sold in over 120 countries and available in over 5,000 U.S. retail outlets, including GNC and Vitamin Shoppe. MusclePharm products are also sold in over 100 online stores, including bodybuilding.com, Amazon.com and Vitacost.com. MusclePharm Corporation reported a net loss of $13.8 million in 2014, a net loss of $17.7 million in 2013 and a net loss of $19 million in 2012. NAKED BRAND: Says New Sales Team to Drive Growth ------------------------------------------------ Naked Brand Group Inc. announced a new sales team comprised of five experienced sales executives and specialists. The team, which will be led by industry veteran Pat Larkin as vice president of sales, is charged with driving wholesale channel growth for both women's and men's product in department stores, online retailers as well as specialty stores nationwide. "Naked has worked hard to create exceptional products for both women and men. Sales execution is now the key to making this product broadly available to consumers. I am thrilled to announce the addition of this talented and experienced sales team," said Carole Hochman, CEO & chief creative officer of Naked. "I have known Pat Larkin for many years and she is a proven winner. With the CURVE Expo this week in New York and our strong Fall and Spring collections, including the Wade x Naked collection launching in September, Pat Larkin and the team are already hard at work opening up new accounts and channels of distribution." Pat Larkin has spent over thirty years in the Intimate Apparel Industry. In early 1990's, she was the National Sales Manager for I. Appel Corporation in sleepwear. She then became Vice President of Sales for the launch of Karen Neuburger and then Vice President of International Sales for Richard Leeds. Her extensive sales relationships include high end and mid-tier department stores, as well as specialty and off-price stores and private label channels throughout the United States. "I have admired Carole Hochman for years. She is the best at what she does and her work with Naked is the best I have seen from her over a long, highly successful career," said Pat Larkin, Naked's new vice president of sales. "We are all honored to join her team and believe Naked has an amazing opportunity to become the next great brand in intimate apparel." Working with Ms. Larkin at Naked are 4 additional full-time sales team members. Naked is also engaging additional independent sales representatives nationwide to focus on specialty account sales. Full-team sales team members include: Rocco Damiano, national sales manager, has more than 25 years of sales and marketing management experience in lingerie, daywear, shapewear, and intimate apparel for both domestic and international brands including Karen Neuburger and Eber International. Most recently, he was the USA Manager for the iconic British Legwear brand Pretty Polly. Jenn Gossweiler, in house account manager, began her career in 2000 as the assistant women's accessories and sleepwear buyer at Ralph Lauren. In 2003 she was the assistant buyer at PVH Corp in Women’s Sportswear. Jenn then worked at the Carole Hochman Design group for 10 years climbing from an Account Executive to Senior Analyst to Specialty Store Sales Manager. Iris Arenson, in House account manager - Northeast Region, began her career in the Intimate Apparel Industry at Eve Stillman N.Y in 1979 after graduating with a BBA from Baruch College, CUNY New York. From 1986 to 2016, she worked exclusively for Carole Hochman Design Group / CHDG: A Komar Company. She has developed a strong reputation for her commitment to sales and excellence in customer service. During her 29 years at CHDG, Iris has created strong relationships with specialty stores as well as major stores while also developing niche market opportunities. Sara Belon, in-house account manager, Sara started her career working for BareNecessities.com in merchandising and marketing. She then became an independent sales representative for brands such as Le Mystere, Maison Lejaby, Fine Lines, Splendid Intimates, UnderElla by Ella Moss, Coconut Grove, Jenna Leigh Lingerie, Affinitas & Parfait, Body Wrap and Curvy Kate. She has a specialized background in sales development, marketing and product merchandising. About Naked Brand Naked Brand Group Inc. designs, manufactures, and sells men's innerwear and lounge apparel products in the United States and Canada. It offers various innerwear products, including trunks, briefs, boxer briefs, undershirts, T-shirts, and lounge pants under the Naked brand, as well as under the NKD sub-brand for men. The company sells its products to consumers and retailers through wholesale relationships and direct-to-consumer channel, which consists of an online e-commerce store, thenakedshop.com. Naked Brand Group Inc. is based in New York, New York. Naked Brand reported a net loss of US$19.06 million on US$1.38 million of net sales for the year ended Jan. 31, 2016, compared to a net loss of US$21.07 million on US$557,000 of net sales for the year ended Jan. 31, 2015. As of April 30, 2016, Naked Brand had $5.04 million in total assets, $1.85 million in total liabilities, and $3.19 million in total stockholders' equity. BDO USA, LLP, in New York, NY, issued a "going concern" qualification on the consolidated financial statements for the year ended Jan. 31, 2016, noting that the Company incurred a net loss of $19,063,399 for the year ended January 31, 2016 and the Company expects to incur further losses in the development of its business. This condition raises substantial doubt about the Company's ability to continue as a going concern. NAKED BRAND: Stockholders Elect Seven Directors ----------------------------------------------- Naked Brand Group Inc. held its 2016 annual meeting of stockholders on Aug. 3, 2016, at which the stockholders: (1) elected Carole Hochman, Joel Primus, David Hochman, Andrew Kaplan, Paul Hayes, Martha Olson, and Jesse Cole as directors; (2) approved, on a non-binding advisory basis, the compensation of the named executive officers of the Company; (3) voted, on a non-binding advisory basis, that a non-binding advisory vote to approve the compensation of the named executive officers of the Company be taken every three years; (4) approved an amendment to the Company's Articles of Incorporation to increase the number of authorized shares of the common stock from 11,250,000 to 18,000,000; (5) approved an amendment to the Company's Articles of Incorporation to provide authority to issue up to 2,000,000 shares of blank check preferred stock; and (6) ratified the appointment of BDO USA, LLP as the Company's independent auditor for the fiscal year ending Jan. 31, 2017. At the beginning of the Annual Meeting, there were 4,064,490 shares of common stock present at the Annual Meeting in person or by proxy, which represented 66.96% of the common stock entitled to vote at the Annual Meeting and which constituted a quorum for the transaction of business. Holders of the Company's common stock were entitled to one vote for each share held as of the close of business on June 15, 2016. About Naked Brand Naked Brand Group Inc. designs, manufactures, and sells men's innerwear and lounge apparel products in the United States and Canada. It offers various innerwear products, including trunks, briefs, boxer briefs, undershirts, T-shirts, and lounge pants under the Naked brand, as well as under the NKD sub-brand for men. The company sells its products to consumers and retailers through wholesale relationships and direct-to-consumer channel, which consists of an online e-commerce store, thenakedshop.com. Naked Brand Group Inc. is based in New York, New York. Naked Brand reported a net loss of US$19.06 million on US$1.38 million of net sales for the year ended Jan. 31, 2016, compared to a net loss of US$21.07 million on US$557,000 of net sales for the year ended Jan. 31, 2015. As of April 30, 2016, Naked Brand had $5.04 million in total assets, $1.85 million in total liabilities, and $3.19 million in total stockholders' equity. BDO USA, LLP, in New York, NY, issued a "going concern" qualification on the consolidated financial statements for the year ended Jan. 31, 2016, noting that the Company incurred a net loss of $19,063,399 for the year ended January 31, 2016 and the Company expects to incur further losses in the development of its business. This condition raises substantial doubt about the Company's ability to continue as a going concern. NATIONAL CINEMEDIA: Posts $6.8-Mil. Net Income for Second Quarter ----------------------------------------------------------------- National Cinemedia, Inc., filed with the Securities and Exchange Commission its quarterly report on Form 10-Q reporting net income attributable to the Company of $6.8 million on $115 million of revenue for the three months ended June 30, 2016, compared to net income attributable to the Company of $10.1 million on $122 million of revenue for the three months ended July 2, 2015. For the six months ended June 30, 2016, the Company reported net income attributable to the Company of $2.5 million on $192 million of revenue compared to net income attributable to the Company of $1.1 million on $198 million of revenue for the six months ended July 2, 2015. As of June 30, 2016, National Cinemedia had $1.04 billion in total assets, $1.21 billion in total liabilities, and a $166 million total deficit. NCM, Inc.'s primary source of liquidity and capital resources is the quarterly available cash distributions from NCM LLC as well as its existing cash balances and marketable securities, which as of June 30, 2016 were $58.3 million (excluding NCM LLC). NCM LLC's primary sources of liquidity and capital resources are its cash provided by operating activities, availability under its revolving credit facility and cash on hand. A full-text copy of the Form 10-Q is available for free at: https://is.gd/bXopWX About National CineMedia National CineMedia, Inc., is the holding company of National CineMedia, LLC. NCM LLC operates the largest digital in-theatre network in North America, allowing NCM to distribute advertising, Fathom entertainment programming events and corporate events under long-term exhibitor services agreements with American Multi-Cinema Inc., a wholly owned subsidiary of AMC Entertainment Inc.; Regal Cinemas, Inc., a wholly owned subsidiary of Regal Entertainment Group; and Cinemark USA, Inc., a wholly owned subsidiary of Cinemark Holdings, Inc. NCM LLC also provides such services to certain third-party theater circuits under "network affiliate" agreements, which expire at various dates. For the year ended Dec. 31, 2015, the Company reported net income attributable to the Company of $15.4 million on $447 million of revenue compared to net income of $13.4 million on $394 million of revenue for the year ended Jan. 1, 2015. * * * As reported by the TCR on March 24, 2011, Standard & Poor's Ratings Services raised its corporate credit ratings on Centennial, Colorado-based National CineMedia Inc. and operating subsidiary National CineMedia LLC (which S&P analyzes on a consolidated basis) to 'BB-' from 'B+'. "The 'BB-' corporate credit rating reflects S&P's expectation that NCM's EBITDA growth will enable the company to continue to de-lever over the intermediate term despite its aggressive dividend policy," said Standard & Poor's credit analyst Jeanne Shoesmith. NEIMAN MARCUS: Bank Debt Trades at 6% Off ----------------------------------------- Participations in a syndicated loan under Neiman Marcus Group Inc is a borrower traded in the secondary market at 94.00 cents-on-the-dollar during the week ended Friday, July 29, 2016, according to data compiled by LSTA/Thomson Reuters MTM Pricing. This represents an increase of 0.46 percentage points from the previous week. Neiman Marcus pays 300 basis points above LIBOR to borrow under the $2.9 billion facility. The bank loan matures on Oct. 16, 2020 and carries Moody's B2 rating and Standard & Poor's B- rating. The loan is one of the biggest gainers and losers among 247 widely quoted syndicated loans with five or more bids in secondary trading for the week ended July 29. NEONODE INC: Incurs $1.33 Million Net Loss in Second Quarter ------------------------------------------------------------ NeoNode, Inc., filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss attributable to the Company of $1.33 million on $2.57 million of net revenues for the three months ended June 30, 2016, compared to a net loss attributable to the Company of $1.79 million on $2.77 million of net revenues for the same period in 2015. For the six months ended June 30, 2016, the Company reported a net loss attributable to the Company of $2.69 million on $5.70 million of net revenues compared to a net loss attributable to the Company of $3.86 million on $5.03 million of net revenues for the six months ended June 30, 2015. As of June 30, 2016, Neonode had $3.81 million in total assets, $4.69 million in total liabilities and a $878,000 total stockholders' deficit. "Our automotive business grew 25% on a quarter over quarter basis and we expect the number of cars with our technology to increase and our opportunities to continue to expand. We are well on our way of reaching our goal of 1.3 million cars with our technology in 2016. In the first half of this year our customers shipped 500,000 cars using our technology. In this quarter, we signed our first supply agreement with an auto OEM using our tailgate sensor module and took a significant step towards delivering automotive qualified sensor modules. We expect to grow our business beyond infotainment systems by supplying sensors for door handles, tailgates, steering wheels and other touch and gesture automotive applications in the coming years. Our goal is to be the premier supplier of sensors to the automotive industry," said Thomas Eriksson, Neonode CEO. "We completed setting up and configuring our manufacturing facility and will begin ramping the production of AirBar. We are on track to make the initial shipments of AirBar to our pre-order customers by the end of August. We, along with Ingram Micro, have established key retail sales channels in the U.S., Europe and Asia and are planning to begin delivery of AirBar in the fourth quarter. We will start by delivering AirBar to the U.S. followed by Europe and then Asia. We are also working with Ingram Micro to establish retail channels in India and China. AirBar is now ready to allow millions of people around the world to touch enable their PCs with an affordable plug and touch device," concluded Mr. Eriksson. Cash and accounts receivable totaled $1.6 million at June 30, 2016, compared to $4.4 million at Dec. 31, 2015. Common shares on a fully diluted basis totaled approximately 45.7 million shares on June 30, 2016. A full-text copy of the Form 10-Q is available for free at: https://is.gd/e0se2t About Neonode Inc. Lafayette, Calif.-based Neonode Inc. (OTC BB: NEON) -- http://www.neonode.com/-- provides optical touch screen solutions for hand-held and small to midsize devices. Neonode reported a net loss attributable to the Company of $7.82 million on $11.11 million of net revenues for the year ended Dec. 31, 2015, compared to a net loss attributable to the Company of $14.23 million on $4.74 million of net revenues for the year ended Dec. 31, 2014. NET ELEMENT INC: Elects to Swap $200,000 for Common Shares ---------------------------------------------------------- Net Element, Inc., opted to exchange a tranche in the aggregate amount of $200,000 for 104,942 shares of the Company common stock based on the "exchange price" of $1.9058 per share for this tranche pursuant to the Master Exchange Agreement, with Crede CG III, Ltd. The Agreement and its terms were disclosed in the Company's Current Report on Form 8-K filed on May 3, 2016. Such shares of common stock of the Company were issued to Crede under an exemption from the registration requirements of the Securities Act of 1933, as amended, in reliance upon Section 3(a)(9) of the Securities Act. 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 $10.2 million on $21.4 million of total revenues for the year ended Dec. 31, 2014. As of March 31, 2016, Net Element had $21.6 million in total assets, $14.1 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. NEWASURION CORP: S&P Affirms 'B' CCR, Outlook Remains Positive -------------------------------------------------------------- S&P Global Ratings said that it has affirmed its 'B' long-term corporate credit rating on NEWAsurion Corp. and its subsidiaries Lonestar Intermediate Super Holdings LLC and Asurion LLC. S&P also revised its recovery rating on Asurion LLC's first-lien credit facility to '2L' from '3H', indicating a substantial expectation of recovery (70%-90%--lower half of the range) in the event of default. This led S&P to raise its issue-level rating on this debt to 'B+' from 'B'. At the same time, S&P has affirmed its '6' recovery rating on Asurion's second-lien term loan, resulting in an issue-level rating of 'CCC+'. The outlook remains positive. At the same time, S&P assigned its 'CCC+' rating with a '6' recovery rating, indicating its expectation of a negligible recovery (0%-10%) in the event of default, to Lonestar's planned $550 million senior unsecured debt maturing in 2021. "Our ratings continue to reflect NEWAsurion's satisfactory business risk profile and highly leveraged financial risk profile," said S&P Global Ratings credit analyst Neal Freedman. "The company's recent recapitalization has reduced private-equity ownership to less than 40%, resulting in or revising our view of its financial policy to neutral, reflecting an expected more-conservative financial policy and less-volatile overall credit profile relative to peers." S&P also believes that, despite the new debt issuance, year-end 2016 debt to EBITDA will be below 6.0x and EBITDA margins above 20% based on NEWAsurion's strong first-half 2016 operating performance, with first-half EBITDA increasing about 18% over the 2015 period. The increase stemmed primarily from strong subscriber growth coupled with subscribers purchasing more, and higher-margin, products. The revised recovery rating reflects S&P's increased expectation of recovery based on an increased enterprise value resulting from the company's improved operating performance, as well as the additional buffer provided by the senior unsecured debt issuance. "The positive outlook reflects our expectation that NEWAsurion's continued earnings growth will result in an improved overall credit profile," Mr. Freedman continued. "For 2016, we expect revenue growth in the mid- to high-single digits and an EBITDA margin of more than 20%, resulting in debt to EBITDA of 5.0x–6.0x and EBITDA interest coverage of at least 2.5x. Although the 2016 reduction of private-equity ownership was equity funded, if any future reduction is funded through additional debt issuance, we expect that leverage will not exceed 6x." S&P could affirm its ratings and revise the outlook to stable if NEWAsurion's earnings or debt levels were to result in debt to EBITDA consistently above 7x. This could occur if the company's earnings were to decline as a result of negative growth or compressed margins, or if it were to adopt a more-aggressive financial policy. "We could raise the corporate credit and issue-level ratings by one notch within the next 12 months if NEWAsurion continues its earnings growth while maintaining financial leverage below 6x," Mr. Freedman added. This would likely occur through revenue growth (mid- to high-single digits in 2016) and stable margins (at least 20% on an EBITDA basis). OPA-LOCKA, FL: Prosecutors Charge Ex-City Officials of Bribery -------------------------------------------------------------- Carolina Bolado, writing for Bankruptcy Law360, reported that federal prosecutors charged two former city officials of nearly bankrupt Opa-Locka, Florida -- former city manager David Chiverton, who resigned in July, and former assistant public works director Gregory Harris -- with participating in a two-year-long scheme in which they demanded bribes from business and individuals in exchange for help with permits and other official business with the city. OSHUN LLC: Seeks Authorization to Use Cash Collateral ----------------------------------------------------- Oshun LLC asks the U.S. Bankruptcy Court for the Western District of New York for authorization to use cash collateral. The Debtor is indebted to: (1) M&T Bank in the amount of $360,000. M&T currently holds a valid and perfected first lien against all of Oshun's personal property, and its proceeds, with the exception of certain other commercial restaurant and related equipment. (2) Buffalo and Eire County Regional Development Corporation, in the amount of $32,000. Buffalo and Eire County Regional Development Corporation currently holds a valid and perfected first lien against ceratin of the Debtor's commercial restaurant equipment. (3) The New York State Department of Taxation and Finance, in the amount of $76,000. The NYS Department of Taxation currently holds a valid and perfected lien against the Debtor's cash collateral. The Debtor tells the Court that it needs to use cash collateral to maintain the liquidity necessary to administer the Chapter 11 case and continue its operations in the ordinary course of business. The Debtor's proposed budget provides for total expenses in the amount of $48,705 for the period Aug. 9, 2016 to Aug. 23, 2016, and $380,785 for the period Aug. 23, 2016 to Nov. 29, 2016. The Debtor proposes to make monthly adequate protection payments to M&T Bank in the amount of $3,740; Buffalo and Eire County Regional Development Corporation in the amount of $920.83; and the NYS Department of Taxation in the amount of $1,750. The Debtor also proposes to grant replacement liens to M&T Bank, Buffalo and Eire County Regional Development Corporation, and the NYS Department of Taxation in the same extent and priority, and with respect to the same assets as served as their prepetition collateral. A full-text copy of the Debtor's Motion, dated August 3, 2016, is available at https://is.gd/FbZPQo A full-text copy of the Debtor's proposed Budget, dated August 3, 2016, is available at https://is.gd/83FIxR Oshun LLC is represented by: Arthur G. Baumeister, Esq. Scott J. Bogucki, Esq. AMIGONE, SANCHEZ & MATTREY, LLP 1300 Main Place Tower 350 Main Street Buffalo, NY 14202 Telephone: (716) 852-1300 About Oshun, LLC Oshun, LLC filed a chapter 11 petition (Bankr. W.D.N.Y. Case No. 1-16-11509-MJK) on August 2, 2016. The Debtor is represented by Arthur G. Baumeister, Jr., Esq. and Scott J. Bogucki, Esq., at Amigone, Sanchez & Mattrey, LLP. PAGOSA PARTNERS: Case Summary & 9 Unsecured Creditors ----------------------------------------------------- Debtor: Pagosa Partners II, Inc. dba Boulder Coffee, Inc. 2911 N Cicero Avenue Chicago, IL 60641 Case No.: 16-17905 Chapter 11 Petition Date: August 10, 2016 Court: United States Bankruptcy Court District of Colorado (Denver) Judge: Hon. Joseph G. Rosania Jr. Debtor's Counsel: Jeffrey S. Brinen, Esq. KUTNER BRINEN, P.C. 1660 Lincoln St., Suite 1850 Denver, CO 80264 Tel: 303-832-2400 E-mail: jsb@kutnerlaw.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Robert J. Ralis, president. A copy of the Debtor's list of nine unsecured creditors is available for free at: http://bankrupt.com/misc/cob16-17905.pdf PARAGON OFFSHORE: Executes Amendment to Plan Support Agreement -------------------------------------------------------------- BankruptcyData.com reported that Paragon Offshore announced that the Company has executed an amendment to its amended plan support agreement (the 'Amended PSA') supporting a revised Plan of Reorganization with 100% of the lenders under its senior secured revolving credit agreement and holders of approximately 69% of the principal amount of its 6 3/4% Senior Unsecured Notes maturing July 2022 and 7 1/4% Senior Unsecured Notes maturing August 2024. On Aug. 5, 2016, Paragon Offshore reached an agreement in principle with its bondholders and a steering committee of the revolver lenders with respect to the Amended PSA. Randall D. Stilley, president and C.E.O. of Paragon Offshore comments, "We're pleased that we've received definitive support for our Revised Plan, Our next milestone is to seek approval of the supplement to our disclosure statement at our hearing on August 16th before appearing before the court at the end of September to continue presenting our case. With the support of our Bondholders and Revolver Lenders, we remain confident that our restructuring plan will be approved. Our goal is to emerge from chapter 11 quickly as soon as we receive approval and turn our full attention once more to creating long-term shareholder value." About Paragon Offshore Paragon Offshore plc -- http://www.paragonoffshore.com/-- is a global provider of offshore drilling rigs. Paragon's operated fleet includes 34 jackups, including two high specification heavy duty/harsh environment jackups, and six floaters (four drillships and two semisubmersibles). Paragon's primary business is contracting its rigs, related equipment and work crews to conduct oil and gas drilling and workover operations for its exploration and production customers on a dayrate basis around the world. Paragon's principal executive offices are located in Houston, Texas. Paragon is a public limited company registered in England and Wales and its ordinary shares have been trading on the over-the-counter markets under the trading symbol "PGNPF" since December 18, 2015. Paragon Offshore Plc, et al., filed separate Chapter 11 bankruptcy petitions (Bankr. D. Del. Case Nos. 16-10385 to 16-10410) on Feb. 14, 2016, after reaching a deal with lenders on a reorganization plan that would eliminate $1.1 billion in debt. The petitions were signed by Randall D. Stilley as authorized representative. Judge Christopher S. Sontchi is assigned to the cases. The Debtors reported total assets of $2.47 billion and total debt of $2.96 billion as of Sept. 30, 2015. The Debtors have engaged Weil, Gotshal & Manges LLP as general counsel, Richards, Layton & Finger, P.A. as local counsel, Lazard Freres & Co. LLC as financial advisor, Alixpartners, LLP as restructuring advisor, and Kurtzman Carson Consultants as claims and noticing agent. PATRICK O'NEAL CHEVERS: Disclosures OK'd; Aug. 30 Plan Hearing Set ------------------------------------------------------------------ The Hon. Randal S. Mashburn of the U.S. Bankruptcy Court for the Middle District of Tennessee has approved Patrick O'Neal Chevers' second amended and restated disclosure statement. Aug. 30, 2016, is fixed for the hearing on confirmation of the plan, at 9:00 a.m. Aug. 24, 2016, is the last day for filing written acceptances or rejections of the Plan. Aug. 24 is also fixed as the last day for filing objections to confirmation of the Plan. As reported by the Troubled Company Reporter on Aug. 11, 2016, the Debtor's second amended and restated disclosure statement concerning the Debtor's plan of reorganization states that members of Class 8 consisting of any and all general unsecured priority allowed claims will be paid 100% of their Allowed Claim within approximately five years of the Effective Date. Payments of the amounts due to members of Class 8 under the Plan will satisfy the Debtor's obligation to make disposable income payments. Patrick O'Neal Chevers filed for Chapter 11 bankruptcy protection (Bankr. M.D. Tenn. Case No. 14-007044). On June 5, 2012, the Debtor filed a Chapter 13 case in the Western District of Michigan which was dismissed and on Feb. 18, 2014, the Debtor filed a Chapter 11 case in this district which was also dismissed. Randall K. Winton, Esq., at Winton Law, PLLC, serves as the Debtor's counsel. PEABODY ENERGY: Business Plan Approved by Bankruptcy Lenders ------------------------------------------------------------ BankruptcyData.com reported that Peabody Energy announced that it has received approval of its business plan from the Company's D.I.P. financing lenders. The business plan forms the foundation for the plan of reorganization that the Company expects to file with the U.S. Bankruptcy Court before year-end. Both the business plan and the plan of reorganization are critical milestones for Peabody Energy's eventual emergence from Chapter 11 protection. Peabody Energy's president and C.E.O., Glenn Kellow, comments, "We are pleased to advance a realistic plan that recognizes both the challenges and opportunities related to the company and industry. As Peabody focuses on emerging stronger from the Chapter 11 process, we look to capitalize on our strengths, build upon our positive operating performance, reduce our overall debt and fixed charges, and pursue additional improvements for long-term success. Peabody has a strong asset base and skilled workforce intent on creating maximum value in an essential industry." Over the five-year business plan period, the Company contemplates total sales volumes rising from 168 million tons in 2016 to a range of 194 to 197 million tons per year between 2018 and 2021. Revenues are anticipated to be largely stable between $4.4 billion and $4.6 billion, while EBITDAR is expected to rise 60 to 65% from 2016 levels by the end of the business plan. About Peabody Energy Corporation Headquartered in St. Louis, Missouri, Peabody Energy Corporation claims to be the world's largest private-sector coal company. As of Dec. 31, 2014, the Company owned interests in 26 active coal mining operations located in the United States (U.S.) and Australia. The Company has a majority interest in 25 of those mining operations and a 50% equity interest in the Middlemount Mine in Australia. In addition to its mining operations, the Company markets and brokers coal from other coal producers, both as principal and agent, and trade coal and freight-related contracts through trading and business offices in Australia, China, Germany, India, Indonesia, Singapore, the United Kingdom and the U.S. Peabody posted a net loss of $1.988 billion for 2015, wider from the net loss of $777 million in 2014 and the $513 million net loss in 2013. At Dec. 31, 2015, the Company had total assets of $11.02 billion against $10.1 billion in total liabilities, and stockholders' equity of $919 million. On April 13, 2016, Peabody Energy Corp. and 153 affiliates filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code. The 154 cases are pending joint administration before the Honorable Judge Barry S. Schermer under Case No. 16-42529 in the U.S. Bankruptcy Court for the Eastern District of Missouri. As of the Petition Date, PEC has approximately $4.3 billion in outstanding secured debt obligations and $4.5 billion in outstanding unsecured debt obligations. The Debtors tapped Jones Day as general counsel; Armstrong, Teasdale LLP as local counsel; Lazard Freres & Co. LLC and investment banker Lazard PTY Limited as investment banker; FTI Consulting, Inc., as financial advisors; and Kurtzman Carson Consultants, LLC, as claims, ballot and noticing agent. The Office of the U.S. Trustee on April 29, 2016, appointed seven creditors of Peabody Energy Corp. to serve on the official committee of unsecured creditors. The Committee retained Morrison & Foerster LLP as counsel, Spencer Fane LLP as local counsel, Curtis, Mallet-Prevost, Colt & Mosle LLP as conflicts counsel, Blackacre LLC as its independent expert, and Berkeley Research Group, LLC, as financial advisor. PEABODY ENERGY: DIP Lenders Approve Business Plan ------------------------------------------------- Peabody Energy on Aug. 10, 2016, disclosed that it has received approval of its business plan by the company's debtor-in-possession (DIP) financing lenders. The business plan forms the foundation for the plan of reorganization that the company expects to submit before the end of the year. Both the business plan and the plan of reorganization are essential milestones toward Peabody's successful emergence from Chapter 11 bankruptcy protection. Peabody Energy President and Chief Executive Officer Glenn Kellow noted that Peabody has opportunities to not only survive but to thrive for the long-term benefit of its many stakeholders, despite operating in an industry with unprecedented challenges of late. "We are pleased to advance a realistic plan that recognizes both the challenges and opportunities related to the company and industry," said Mr. Kellow. "As Peabody focuses on emerging stronger from the Chapter 11 process, we look to capitalize on our strengths, build upon our positive operating performance, reduce our overall debt and fixed charges, and pursue additional improvements for long-term success. Peabody has a strong asset base and skilled workforce intent on creating maximum value in an essential industry." As part of the business plan, the company detailed its current position, operational highlights, key drivers of future value creation, financial overview and anticipated future state: Current Position: Peabody operates mines and mining complexes in eight states and controls 6.3 billion tons of coal reserves in the United States and Australia, with core sectors including the Powder River Basin (PRB), Illinois Basin and Asia-Pacific metallurgical and thermal coal. Within the coal industry, Peabody has significant diversity across regions, demand centers, products and customers, serving thermal and metallurgical coal customers in 25 countries. Operational Highlights: Following a company-best safety incidence rate in 2015, Peabody's safety performance is 14 percent improved year-to-date in 2016. Year-to-date, U.S. operations demonstrated 8 percent cost-per-ton improvements since 2012 despite 35 percent lower volumes. Peabody's gross margins in the PRB over the past two full years average 26 percent and compare favorably to a 15 percent average for other public PRB producers. In Australia, Peabody's capital investment has declined more than 90 percent from the peak in 2012 while costs per ton declined 47 percent. And Peabody's first quarter selling and administrative costs have achieved a level of 3.3 percent of revenues -- best among U.S. coal peers even with Peabody's global nature. Key Drivers of Future Value Creation: Looking forward, Peabody has outlined multiple drivers of future value creation: -- Continued pursuit of safe, low-cost operations. Key elements include a constant drive down the cost curve; protection of the company's social license to operate; and excellence in coal mine restoration. -- Emphasis on the best products, regions and customers within an essential industry. -- Capital discipline with a sharp return orientation. -- Management team with major value focus. -- A leading voice for responsible mining, energy access and clean coal technologies. Industry Assumptions: Regarding U.S. fundamentals, Peabody's business plan assumes U.S. coal demand for electricity generation grows a total of 20 to 25 million tons between 2016 and 2021, with impacts from announced and expected plant retirements offset by increased capacity utilization at remaining plants. Within Asia/Pacific, metallurgical coal demand is expected to increase by 50 to 55 million tonnes between 2016 and 2021, driven by China and India. Seaborne thermal demand is expected to rise by 50 to 60 million tonnes as some 375 gigawatts of new generation capacity is added, primarily in the Asia-Pacific region. Financial Overview: Over the five-year business plan period, the company contemplates total sales volumes rising from 168 million tons in 2016 to a range of 194 to 197 million tons per year between 2018 and 2021. Revenues are anticipated to be largely stable between $4.4 billion and $4.6 billion, while EBITDAR is expected to rise 60 to 65 percent from 2016 levels by the end of the business plan. Financial performance is highly sensitive to changes in assumptions as described in the plan. Future State: The business plan contemplates a desired future state that incorporates a diversified platform capable of generating positive cash flows across all business cycles and generates returns to support future growth initiatives. Within the Americas, this includes an unmatched portfolio of assets in the PRB and Illinois Basin that continues to create value in the face of reduced coal demand. Within these basins, the company, among other things, looks to drive lower costs through synergies and provide greater value, whereas in the Southwest and Colorado, the company anticipates managing for cash generation. In Australia, the business plan reinforces that both metallurgical and thermal sectors are core to Peabody. The company anticipates a smaller but more profitable platform focused on high-quality products and/or top-tier assets to capitalize on higher growth in Asia. The business plan notes that the thermal segment margins average 17 percent over the plan, while margins at metallurgical mines point to the need for further optimization. The business plan contemplates a reduction of metallurgical coal volumes over the five-year life of the business plan, assuming a strong Australian currency and no major uplift in product pricing. As described in the business plan, future plans are dependent on factors including industry conditions and the success of Project Excellence improvement initiatives. In addition, in the ordinary course of business, the company continues to review and optimize the asset portfolio. In the first half of 2016, the company completed the sale of undeveloped tenements, and in late 2016 the company intends to follow through on placing the Burton Mine in care and maintenance, as previously announced. Mr. Kellow reinforced that the company will continue to progress through the Chapter 11 process as matters essential to a plan of reorganization are discussed with creditors in coming months. "Peabody clearly has much work to do prior to emerging from Chapter 11 and, longer-term, to create significant value," said Mr. Kellow. "We are highly confident that we have the assets, the team and the operational successes to build upon as we create a stronger Peabody." About Peabody Energy Corporation Headquartered in St. Louis, Missouri, Peabody Energy Corporation claims to be the world's largest private-sector coal company. As of Dec. 31, 2014, the Company owned interests in 26 active coal mining operations located in the United States (U.S.) and Australia. The Company has a majority interest in 25 of those mining operations and a 50% equity interest in the Middlemount Mine in Australia. In addition to its mining operations, the Company markets and brokers coal from other coal producers, both as principal and agent, and trade coal and freight-related contracts through trading and business offices in Australia, China, Germany, India, Indonesia, Singapore, the United Kingdom and the U.S. Peabody posted a net loss of $1.988 billion for 2015, wider from the net loss of $777 million in 2014 and the $513 million net loss in 2013. At Dec. 31, 2015, the Company had total assets of $11.02 billion against $10.1 billion in total liabilities, and stockholders' equity of $919 million. On April 13, 2016, Peabody Energy Corp. and 153 affiliates filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code. The 154 cases are pending joint administration before the Honorable Judge Barry S. Schermer under Case No. 16-42529 in the U.S. Bankruptcy Court for the Eastern District of Missouri. As of the Petition Date, PEC has approximately $4.3 billion in outstanding secured debt obligations and $4.5 billion in outstanding unsecured debt obligations. The Debtors tapped Jones Day as general counsel; Armstrong, Teasdale LLP as local counsel; Lazard Freres & Co. LLC and investment banker Lazard PTY Limited as investment banker; FTI Consulting, Inc., as financial advisors; and Kurtzman Carson Consultants, LLC, as claims, ballot and noticing agent. The Office of the U.S. Trustee on April 29 appointed seven creditors of Peabody Energy Corp. to serve on the official committee of unsecured creditors. The Committee retained Morrison & Foerster LLP as counsel, Spencer Fane LLP as local counsel, Curtis, Mallet-Prevost, Colt & Mosle LLP as conflicts counsel, Blackacre LLC as its independent expert, and Berkeley Research Group, LLC, as financial advisor. PEABODY ENERGY: Lenders Accept Miner's Business Plan ---------------------------------------------------- The American Bankruptcy Institute, citing Dow Jones Newswire, reported that Peabody Energy Corp. said top lenders accepted its go-forward business plan, a key milestone in the coal miner's chapter 11 restructuring. According to the report, Peabody said the lenders behind its $800 million bankruptcy financing package accepted its five-year business plan, disclosed in a filing with the U.S. Securities and Exchange Commission. The 2017-21 outlook will form the basis for a chapter 11 plan of reorganization that the coal giant hopes to submit to the bankruptcy court by the end of the year, the report related. The company faced an Aug. 11, 2016 deadline to submit the business plan for lenders' approval or risk being declared in default of the loan, the report further related. Its reorganization plan, which is subject to a creditor vote and court approval, would be built around the business outlook and would also describe how Peabody would reduce its debt load and exit bankruptcy, the report said. Historically low natural gas prices and falling demand from China have contributed to a tough coal market, and Peabody said near-term U.S. coal prices are "expected to remain subdued," the report related. The company's business plan indicates it expects that the U.S. coal industry will "modestly" rebound next year as natural gas prices rise, the report further related. It also forecasts growing demand from U.S. utilities for coal over the next five years, the report added. About Peabody Energy Corporation Headquartered in St. Louis, Missouri, Peabody Energy Corporation claims to be the world's largest private-sector coal company. As of Dec. 31, 2014, the Company owned interests in 26 active coal mining operations located in the United States (U.S.) and Australia. The Company has a majority interest in 25 of those mining operations and a 50% equity interest in the Middlemount Mine in Australia. In addition to its mining operations, the Company markets and brokers coal from other coal producers, both as principal and agent, and trade coal and freight-related contracts through trading and business offices in Australia, China, Germany, India, Indonesia, Singapore, the United Kingdom and the U.S. Peabody posted a net loss of $1.988 billion for 2015, wider from the net loss of $777 million in 2014 and the $513 million net loss in 2013. At Dec. 31, 2015, the Company had total assets of $11.02 billion against $10.1 billion in total liabilities, and stockholders' equity of $919 million. On April 13, 2016, Peabody Energy Corp. and 153 affiliates filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code. The 154 cases are pending joint administration before the Honorable Judge Barry S. Schermer under Case No. 16-42529 in the U.S. Bankruptcy Court for the Eastern District of Missouri. As of the Petition Date, PEC has approximately $4.3 billion in outstanding secured debt obligations and $4.5 billion in outstanding unsecured debt obligations. The Debtors tapped Jones Day as general counsel; Armstrong, Teasdale LLP as local counsel; Lazard Freres & Co. LLC and investment banker Lazard PTY Limited as investment banker; FTI Consulting, Inc., as financial advisors; and Kurtzman Carson Consultants, LLC, as claims, ballot and noticing agent. The Office of the U.S. Trustee on April 29 appointed seven creditors of Peabody Energy Corp. to serve on the official committee of unsecured creditors. The Committee retained Morrison & Foerster LLP as counsel, Spencer Fane LLP as local counsel, Curtis, Mallet-Prevost, Colt & Mosle LLP as conflicts counsel, Blackacre LLC as its independent expert, and Berkeley Research Group, LLC, as financial advisor. PEDRO LOPEZ MUNOZ: Trustee Appointment Not Warranted, BAP Affirms ----------------------------------------------------------------- The United States Bankruptcy Appellate Panel for the First Circuit affirmed the bankruptcy court's January 15, 2016 order denying United Surety & Indemnity Company's motion to appoint a chapter 11 trustee for Pedro Lopez Munoz. According to the BAP, USIC failed to persuade the appellate panel that the bankruptcy court committed reversible error or abused its discretion in determining that the appointment of a trustee was not warranted under section 1104(a)(1) or section 1104(a)(2). The appeals case is UNITED SURETY & INDEMNITY COMPANY, Appellant, v. PEDRO LOPEZ-MUNOZ, Appellee, Bap No. PR 16-011, Bankruptcy Case No. 13-08171-EAG (B.A.P.), relating to In re PEDRO LOPEZ-MUNOZ, Debtor. A full-text copy of the appellate panel's July 28, 2016 ruling is available at https://is.gd/4zKXzW from Leagle.com. Appellant is represented by: Hector Saldana Egozcue, Esq. 208 Avenida Ponce De Leon Banco Popular Ctr Ste 1420 San Juan, PR 00968 -- and -- Carlos Lugo Fiol, Esq. Department of Justice Office of the Solicitor General Tel: (809)724-2165 Fax: (809)724-3380 -- and -- Jose A. Sanchez Girona, Esq. Appellee is represented by: Carmen Conde Torres, Esq. Luisa S. Valle Castro, Esq. 254 San Jose Street, 5th Floor Old San Juan, PR 00901 Tel: (787) 729-2900 Fax: (787)729-2203 Email: condecarmen@condelaw.com ls.valle@condelaw.com PLUG POWER: Incurs $13.1 Million Net Loss in Second Quarter ----------------------------------------------------------- Plug Power Inc. filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss attributable to the Company of $13.1 million on $20.5 million of total revenue for the three months ended June 30, 2016, compared to a net loss attributable to the Company of $9.22 million on $24 million of total revenue for the three months ended June 30, 2015. For the six months ended June 30, 2016, the Company reported a net loss attributable to the Company of $24.9 million on $35.8 million of total revenue compared to a net loss attributable to the Company of $20.3 million on $33.4 million of total revenue for the same period during the prior year. As of June 30, 2016, Plug Power had $233.40 million in total assets, $127 million in total liabilities, $1.15 million in redeemable preferred stock, and $105 million in total stockholders' equity. "Our cash requirements relate primarily to working capital needed to operate and grow our business, including funding operating expenses, growth in inventory to support both shipments of new units and servicing the installed base, growth in equipment leased to customers under long-term arrangements, funding the growth in our GenKey "turn-key" solution, which includes the installation of our customer's hydrogen infrastructure as well as delivery of the hydrogen fuel, continued development and expansion of our products, and the repayment or refinancing of our long-term debt. Our ability to achieve profitability and meet future liquidity needs and capital requirements will depend upon numerous factors, including the timing and quantity of product orders and shipments; attaining positive gross margins; the timing and amount of our operating expenses; the timing and costs of working capital needs; the timing and costs of building a sales base; the ability of our customers to obtain financing to support commercial transactions; our ability to obtain financing arrangements to support the sale or leasing of our products and services to customers, including financing arrangements to repay or refinance our long-term debt, and the terms of such agreements that may require us to pledge or restrict substantial amounts of our cash to support these financing arrangements; the timing and costs of developing marketing and distribution channels; the timing and costs of product service requirements; the timing and costs of hiring and training product staff; the extent to which our products gain market acceptance; the timing and costs of product development and introductions; the extent of our ongoing and new research and development programs; and changes in our strategy or our planned activities. If we are unable to fund our operations with positive cash flows and cannot obtain external financing, we may not be able to sustain future operations. As a result, we may be required to delay, reduce and/or cease our operations and/or seek bankruptcy protection," the Company stated in the report. A full-text copy of the Form 10-Q is available for free at: https://is.gd/yZUR6k About Plug Power Plug Power Inc. is a provider of alternative energy technology focused on the design, development, commercialization and manufacture of fuel cell systems for the industrial off-road (forklift or material handling) market. Plug Power reported a net loss attributable to the Company of $55.7 million on $103 million of total revenue for the year ended Dec. 31, 2015, compared to a net loss attributable to the Company of $88.5 million on $64.2 million of total revenue for the year ended Dec. 31, 2014. PROLINE CONCRETE: Can Use Bank of Akron's Cash Until Aug. 15 ------------------------------------------------------------ Judge Carl L. Bucki of the U.S. Bankruptcy Court for the Western District of New York authorized Proline Concrete of WNY, Inc. to use cash collateral on an interim basis, until Aug. 15, 2016. The approved Budget provided for total expenses in the amount of $156,725. Judge Bucki granted the Bank of Akron roll-over or replacement liens granting security to the same extent, in the same priority, and with respect to the same assets, as served as collateral for its Prepetition Bank Indebtedness, to the extent of cash collateral actually used during the pendency of the Chapter 11 case. The Debtor was directed to make monthly adequate protection payments to the Bank of Akron in the amount of $6,000, beginning on Aug. 17, 2016. The final hearing on the Debtor's Cash Collateral Motion is scheduled on August 15, 2016 at 10:00 a.m. A full-text copy of the Interim Order, dated August 3, 2016, is available at https://is.gd/ENQnPT About Proline Concrete of WNY, Inc. Proline Concrete of WNY, Inc. filed a chapter 11 petition (Bankr. W.D.N.Y. Case No. 16-11455) on July 25, 2016. The petition was signed by James R. Sickau, president. The Debtor is represented by Arthur G. Baumeister, Jr., Esq., at Amigone, Sanchez & Mattrey LLP. The case is assigned to Judge Carl L. Bucki. At the time of the filing, the Debtor estimated assets and debts at $1 million to $10 million. PUERTO RICO: Treasury Didn't Tell Island to Default, Lawyer Says ---------------------------------------------------------------- Michelle Kaske, writing for Bloomberg News, reported U.S. Treasury officials didn't tell Puerto Rico to default on general-obligation bond payments, according to a lawyer representing the island in its $70 billion debt restructuring. "At least in my experience, U.S. Treasury doesn't say to the commonwealth 'do x or y,'" Richard Cooper, Esq. -- racooper@cgsh.com -- a partner at Cleary Gottlieb Steen & Hamilton LLP, said during a Puerto Rico conference at the CUNY Graduate School of Journalism in New York. "That is ultimately, I think fueled, by creditors speculating for their own purposes." The report related that Puerto Rico skipped paying nearly $1 billion to bondholders on July 1, including $780 million of principal and interest on general obligations. It was the largest default in the $3.7 trillion municipal-bond market and the first time a state-level borrower failed to pay on its direct debt since the 1930s, the report said. Cleary Gottlieb is Puerto Rico's legal adviser as it seeks to reduce a $70 billion debt load, the report further related. The firm has been in discussions with U.S. Treasury staff, commonwealth officials and creditors as the parties negotiate on a how to restructure the island's debt, the report added. QUIZNOS: Former Executives Seek Indemnification ----------------------------------------------- Martin O'Sullivan, writing for Bankruptcy Law360, reported that former Quiznos executives have asked the Court of Chancery of Delaware to declare that certain affiliates of the restaurant chain must shield them from fraud claims brought by former Quiznos stakeholders regarding its 2014 bankruptcy, saying company contracts clearly spell out the obligation. They argue that their employment agreements obligate Quiznos' direct and indirect subsidiaries QCE Gift Card LLC, Quiz-Dia LLC and Quizmark LLC to indemnify them against fraud claims from the restaurant chain's ex-equity stakeholders. About Quiznos Denver-based Quiznos -- http://www.quiznos.com/-- is a chain designed for today's busy consumers who are looking for a high quality, tasty, freshly prepared alternative to traditional fast- food restaurants. With locations in 50 states and 30 countries, Quiznos is one of the world's premier quick-service restaurant chains and pioneer of the toasted sandwich; Quiznos restaurants offer creative, chef-created sandwiches and salads using premium ingredients. Quiznos was founded in 1981 by chefs who discovered that toasting brought out the best in every sandwich ingredient. QCE Finance LLC and its affiliates sought protection under Chapter 11 of the Bankruptcy Code on March 14, 2014. The lead case is QCE Finance LLC (Case No. 14-10543, Bankr. D.Del.). The case is assigned to Judge Peter J. Walsh. The Debtors' lead counsel are Ira S. Dizengoff, Esq., Philip C. Dublin, Esq., Jason P. Rubin, Esq., and Kristine G. Manoukian, Esq., at AKIN GUMP STRAUSS HAUER & FELD LLP, in New York. The Debtors' local counsel is Mark D. Collins, Esq., and Amanda Steele, Esq., at RICHARDS, LAYTON & FINGER, P.A., in Wilmington, Delaware. The Debtors' investment banker and financial advisor is Matthew J. Hart of LAZARD FRERES & CO. LLC. Paul Ruh, Mark A. Roberts, and Jonathan Tibus of Alvarez & Marsal serves as the Debtors' restructuring advisors. Prime Clerk LLC serves as the Debtors' claims and noticing agent. The lead debtor, QCE Finance LLC, scheduled $737,000 in total assets plus "undetermined amounts". It scheduled $618 million plus "undetermined amounts" as liabilities. The U.S. Trustee has appointed a seven-member official committee of unsecured creditors. The Committee has tapped Cousins Chipman & Brown LLP's Scott D. Cousins, Esq., and Ann Kashishian, Esq.; and Otterbourg P.C.'s Scott L. Hazan, Esq., Jenette A. Barrow- Bosshart, Esq., and David M. Posner, Esq., as counsel. Avenue Capital Management II, L.P. and its affiliates are represented by John J. Rapisardi, Esq., and Joseph Zujkowski, Esq., at O'Melveny & Myers LLP in New York. Fortress Investment Group and its affiliates are represented by Skadden Arps Slate Meagher & Flom's Van C. Durrer, Esq. Co-counsel to the Consenting First Lien Lenders are Milbank Tweed Hadley & McCloy's Thomas R. Kreller, Esq., and David B. Zolkin, Esq., and Morris Nichols Arsht & Tunnell's Robert J. Dehney. Counsel to the First Lien Agent is Ropes & Gray's Mark R. Somerstein. Counsel to the Second Lien Agent is Pillsbury Winthrop's Bart Pisella, Esq., and Timothy P. Kober, Esq. Counsel to Vectra Bank Colorado, National Association, is Kasowitz Benson's Adam L. Shiff, Esq. Quiznos' Plan of Reorganization was confirmed by the U.S. Bankruptcy Court in Wilmington, Delaware on May 12, 2014. The company on July 1, 2014, disclosed that it has successfully completed its financial restructuring and emerged from Chapter 11. RED RIVER SOUTH: Hires Robert Raley as Attorney ----------------------------------------------- Red River South Enterprises, LLC seeks authorization from the U.S. Bankruptcy Court for the Western District of Louisiana to employ Robert W. Raley of Ayres, Shelton, Williams, Benson & Paine, LLC as attorney. The Debtor proposes to employ the attorney to -- represent the Debtor in this Chapter 11 case and to advise the Debtor as to its rights, duties and powers as a Debtor- in-Possession; -- prepare and file all necessary statements, schedules, and other documents; -- negotiate and prepare one or more plans of reorganization for the Debtor; -- represent the Debtor at all hearings, meetings of creditors, conferences, trials and other proceedings in this case; and -- perform such legal services as may be necessary in connection with this case. The attorney will be paid at these hourly rates: Robert W. Raley $325 Rebecca Harden $55 The attorney will also be reimbursed for reasonable out-of-pocket expenses incurred. To secure the payment of any attorneys' fees and reimbursable expenses, the attorney has received in trust a Security Retainer in the amount of $40,283. Robert W. Raley assured the Court that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtors and their estates. The attorney can be reached at: Robert W. Raley, Esq. AYERS, SHELTON, WILLIAMS, BENSON & PAINE, LLC Suite 1400, Regions Tower 333 Texas Street P.O. Box 1764 Shreveport, LA 71166-1764 Tel: (318) 227-3500 Fax: (318) 227-3980 E-mail: robertraley@arklatexlaw.com About Red River South Red River South Enterprises, LLC, based in Shreveport, La., filed a Chapter 11 petition (Bankr. W.D. La. Case No. 16-11226) on July 21, 2016. The Hon. Jeffrey P. Norman presides over the case. Robert W. Raley, Esq. as bankruptcy counsel. In its petition, the Debtor estimated $500,000 to $1 million in assets and $1 million to $10 million in liabilities. The petition was signed by Leon S. Miletello, Jr., managing member - Single Member LLC. REDPRAIRIE CORP: Bank Debt Trades at 3% Off ------------------------------------------- Participations in a syndicated loan under RedPrairie Corp is a borrower traded in the secondary market at 96.85 cents-on-the-dollar during the week ended Friday, July 29, 2016, according to data compiled by LSTA/Thomson Reuters MTM Pricing. This represents an increase of 1.22 percentage points from the previous week. RedPrairie Corp pays 500 basis points above LIBOR to borrow under the $1.44 billion facility. The bank loan matures on Dec. 21, 2018 and carries Moody's B3 rating and Standard & Poor's B- rating. The loan is one of the biggest gainers and losers among 247 widely quoted syndicated loans with five or more bids in secondary trading for the week ended July 29. REGATTA CONSTRUCTION: Can Use Cash Collateral Until Aug. 31 ----------------------------------------------------------- Judge Frank J. Bailey of the U.S. Bankruptcy Court for the District of Massachusetts authorized Regatta Construction, Inc. to use cash collateral on an interim basis, until Aug. 31, 2016. The final hearing on the Debtor's use of cash collateral is scheduled on Aug. 30, 2016 at 11:00 a.m. The deadline for the filing of objections to the Debtor's use of cash collateral is set on Aug. 25, 2016. The Debtor was required to file a budget-to-actual reconciliation for the month of July by Aug. 12, 2016. The Debtor was further required to provide a budget-to-actual reconciliation for the period through Aug. 23, 2016 at the final hearing. A full-text copy of the Order, dated Aug. 3, 2016, is available at https://is.gd/hTP8iP About Regatta Construction Regatta Construction, Inc., et al. filed for Chapter 11 protection (Bankr. D. Mass. Case No. 16-11885) on May 18, 2016. The petition was signed by Christian Tosi, president. The Hon. Frank J. Bailey presides over the case. The Debtor estimated assets of $1 million to $10 million and estimated liabilities of $0 to $50,000. The Debtor is represented by George J. Nader, Esq., at Riley & Dever, P.C. REVOLVE SOLAR: Wants Authorization to Use Cash Collateral --------------------------------------------------------- Revolve Solar (CA) Inc. and Revolve Solar (TX) Inc. ask the U.S. Bankruptcy Court for the Western District of Texas for authorization to use cash collateral. The Debtors relate that they have an immediate need to use the cash collateral of its primary secured creditors Knight Capital Funding, National Funding, Inc., and PowerUp Lending Group, Ltd., who claim a lien on, among other things, the Debtors' accounts receivables. The Debtors' proposed Budgets cover a period of 23 weeks beginning on the week ended July 29, 2016 and ending with the week ended December 30, 2016. Each Budget provides for total disbursements in the amount of $3,175,707. The Debtors contend that the cash collateral will be used to continue the Debtors' ongoing operations, which include the sale, manufacture, and installation of solar power systems for both residential and commercial use. The Debtors propose to grant first priority replacement liens and security interests to their primary secured creditors, against the Debtor's accounts receivable originating post-petition and any and all cash or other proceeds from those receivables on a dollar-for-dollar basis, for each dollar of pre-petition cash or accounts receivable used by the Debtor. The Debtors also propose to make monthly adequate protection payments to the primary secured creditors. A full-text copy of the Debtor Revolve Solar (CA) Inc.'s Motion, dated Aug. 3, 2016, is available at https://is.gd/2QYXJa A full-text copy of the Debtor Revolve Solar (TX) Inc.'s Motion, dated Aug. 3, 2016, is available at https://is.gd/9BFQ0R Knight Capital Funding can be reached at: KNIGHT CAPITAL FUNDING 9 East Loockerman Street, Suite 3A-543 Dover, DE 19901 National Funding, Inc. can be reached at: NATIONAL FUNDING, INC. 9820 Towne Center Drive, Suite 200 San Diego, CA 92121 PowerUp Lending Group, Ltd. can be reached at: POWERUP LENDING GROUP, LTD. 111 Great Neck Road, Suite 216 Great Neck, NY 11021 About Revolve Solar. Revolve Solar, Inc. aka Revolve Solar LLC, Revolve Solar (TX) Inc., and Revolve Solar (CA) Inc. each filed chapter 11 petitions (Bankr. W.D. Tex. Case Nos. 16-10896, 16-10897, and 16-10899) on July 31, 2016. The petition was signed by Tim Padden, president. The Debtors are represented by Joyce W. Lindauer, Esq., at Joyce W. Lindauer Attorney, PLLC. Revolve Solar, Inc. and Revolve Solar (TX) Inc.'s cases are assigned to Judge Tony M. Davis, while Revolve Solar (CA) Inc.'s case is assigned to Judge Christopher B. Mott. The Debtors each estimated assets and liabilities at $1 million to $10 million at the time of the filing. RICHARD MERRITT: Unsecureds Get Nothing Under Plan -------------------------------------------------- Richard Merritt filed with the U.S. Bankruptcy Court for the Southern District of Alabama an amended disclosure statement and Chapter 11 plan. Under the Plan, unsecured creditors would receive nothing. No payment will be made on account of general prepetition unsecured debts. Based upon information currently known to the Debtor, it is estimated that this case should result in allowable general unsecured claims of $9,261,804.82, among others. Funding for the Debtor's Plan will come primarily from the orderly liquidation of property interests. A copy of the Disclosure Statement is available at: http://bankrupt.com/misc/alsb11-00380-735.pdf The Plan was filed by the Debtor's counsel: Richard Maples, Jr., Esq. MAPLES & FONTENOT, LLP P.O. Box 1281 Mobile, AL 36633 Tel: (251) 432-2629 E-mail: armaples@maplesfontenot.com Richard Merritt, along with his mother and a third party, formed the Merritt Oil Company, Inc., in 1974. Merritt Oil was then primarily in the petroleum products distribution business. The Debtor filed for Chapter 11 bankruptcy protection (Bankr. S.D. Ala. Case No. 11-00380) on Feb. 1, 2011. As of the date of filing, based on schedules and amended schedules filed, the Debtor's assets consisted of personal property, with a collective total estimated value of $1,229,725, while debts totaled $26,328,307. ROCKWELL MEDICAL: Incurs $5.36 Million Net Loss in Second Quarter ----------------------------------------------------------------- Rockwell Medical, Inc., filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $5.36 million on $13.5 million of sales for the three months ended June 30, 2016, compared to a net loss of $2.53 million on $12.95 million of sales for the three months ended June 30, 2015. For the six months ended June 30, 2016, the Company reported a net loss of $10.2 million on $27.07 million of sales compared to a net loss of $6.23 million on $26.8 million of sales for the six months ended June 30, 2015. As of June 30, 2016, Rockwell Medical had $87.1 million in total assets, $29.5 million in total liabilities and $57.6 million in total shareholders' equity. "We believe we have adequate capital resources and substantial liquidity to pursue our business strategy. "As of June 30, 2016, we had current assets of $84.0 million and net working capital of $74.8 million. We have approximately $64.4 million in cash and investments as of June 30, 2016. Our uses of cash have primarily been for research and product development, investments in inventory to support our product launches and for operating expenses. Cash flow from operations used $6.3 million in the first six months of 2016, which included research and development expenses of $3.4 million, and increases of $3.1 million in inventory and $2.5 million in accounts receivable. We also received $3.3 million net of taxes pursuant to the Wanbang Agreement. Our capital expenditures for the first half of 2016 were $0.2 million. "We anticipate that we will increase our inventory and accounts receivable as we increase our drug product sales. We also expect to invest in research and product development in 2016 as we work to expand potential uses for Triferic, although spending on these indications is expected to be minor in relation to the Company’s current cash resources. We believe that we have adequate capital resources to make these investments in accounts receivable, inventory and research and product development. We expect to generate positive cash flow from operations when sales of our drug products become significant. "We have no long term debt as of June 30, 2016 and do not expect to incur interest expense in 2016. "With respect to future capital equipment spending, we intend to source our drug products from contract manufacturing organizations. Other capital expenditures on our current facilities are not expected to materially exceed depreciation expense. "The Company is in discussions with multiple potential business development partners to out-license rights to Rockwell's products outside the United States. Such licensing arrangements often include upfront fees, research and development milestones, other developmental milestone payments and royalties. If such licensing arrangements are negotiated for certain markets, we may receive such consideration in the future in addition to those we are already entitled to receive under existing agreements including our recently completed licensing agreement for China. In addition to the initial milestone payment under the Wanbang Agreement, we may receive up to an additional $35 million over the life of the agreement in regulatory and revenue milestone payments plus ongoing earnings. We are also considering other business development arrangements including joint ventures, partnerships and other transactions related to our products or other future products that we may develop or license." A full-text copy of the Form 10-Q is available for free at: https://is.gd/0UIKJz About Rockwell Rockwell Medical, Inc. (Nasdaq: RMTI), headquartered in Wixom, Michigan, is a fully-integrated biopharmaceutical company targeting end-stage renal disease ("ESRD") and chronic kidney disease ("CKD") with innovative products and services for the treatment of iron deficiency, secondary hyperparathyroidism and hemodialysis (also referred to as "HD" or "dialysis"). Rockwell's lead investigational drug is in late stage clinical development for iron therapy treatment in CKD-HD patients. It is called Soluble Ferric Pyrophosphate ("SFP"). SFP delivers iron to the bone marrow in a non-invasive, physiologic manner to hemodialysis patients via dialysate during their regular dialysis treatment. Rockwell Medical reported a net loss of $14.4 million on $55.35 million of sales for the year ended Dec. 31, 2015, compared to a net loss of $21.3 million on $54.2 million of sales for the year ended Dec. 31, 2014. The Company also reported a net loss of $48.8 million for the year ended Dec. 31, 2013. RONALD WALTERS: Disclosure Statement Hearing Continued to Oct. 5 ---------------------------------------------------------------- Frank W. Volk of the U.S. Bankruptcy Court for the Southern District of West Virginia will continue on Oct. 5, 2016, at 1:30 p.m. the hearing on Ronald Neal Walters, Sr.'s fourth amended Chapter 11 disclosure statement. The hearing was first scheduled for Aug. 24, 2016. As reported by the Troubled Company Reporter, under the Plan the Debtor will initially pay 1% on all unsecured claims. The unsecured claims will be paid over a 12-month period. Payment will start after the Debtor's motor vehicles are paid off, which time period will be approximately commencing in November 2016. Three percent of the claims will be paid over the next 60-month period. Unsecured creditors will be paid $4,464 during the last quarter of each year for a total of payments in the last quarter of each year in the amount of $22,320.45. Unsecured claims total $869,897. Payments and distributions under the Plan will be funded by the Debtor's income from all sources including, but not limited to, sales of real property in Charleston and income from commissions at insurance business. The Disclosure Statement is available at: http://bankrupt.com/misc/wvsb15-20243-127.pdf Ronald Neal Walters, Sr., filed for Chapter 11 bankruptcy protection (Bankr. S.D. W.Va. Case No. 15-20243) on April 30, 2015. The Debtor continues to work in the insurance business. ROSETTA GENOMICS: Shareholders OK All Proposals at Annual Meeting ----------------------------------------------------------------- On Aug. 8, 2016, Rosetta Genomics Ltd. held its 2016 Annual General Meeting of Shareholders. The proxy statement for the Annual Meetingwas filed by the Company with the Securities and Exchange Commission as Exhibit 99.1 to its Report on Form 6-K on June 24, 2016. At the Annual Meeting, all of the following proposals were approved by shareholders: 1. The re-election of Mr. Roy Davis to serve as a Class III director of the Company for a three year term commencing on the date of his election at the Annual Meeting and until the Annual General Meeting of the Company's shareholders to be held in 2019 in accordance with the Company's Articles of Association; 2. Effective as of the date of the Annual Meeting, in accordance with Section 273(a) of the Israeli Companies Law, 5759-1999, a grant to Mr. Roy Davis of an option to purchase up to 24,000 of the Company's ordinary shares, nominal (par) value NIS 0.6 each; 3. The re-election of Mr. Gerald Dogon to serve as a Class III director of the Company for a three year term commencing on the date of his election at the Annual Meeting and until the Annual General Meeting of the Company's shareholders to be held in 2019 in accordance with the Company's Articles of Association; 4. In accordance with Section 273(a) of the Companies Law, a grant to Mr. Gerald Dogon of an option to purchase up to 24,000 Ordinary Shares; 5. The re-election of Ms. Tali Yaron-Eldar to serve as a Class III director of the Company for a three year term commencing on the date of her election at the Annual Meeting and until the Annual General Meeting of the Company's shareholders to be held in 2019 in accordance with the Company's Articles of Association; 6. Effective as of the date of the Annual Meeting, in accordance with Section 273(a) of the Companies Law a grant to Ms. Tali Yaron-Eldar of an option to purchase up to 24,000 Ordinary Shares; 7. Effective as of the date of the Annual Meeting, in accordance with Section 273(a) of the Companies Law, a grant to Mr. Joshua Rosensweig, a director of the Company, of an option to purchase up to 24,000 Ordinary Shares; 8. A compensation policy for the Company's directors and officers, in accordance with the requirements of the Companies Law; 9. An update to the remuneration for the chairs of committees of the Board of Directors of the Company; and 10. The re-appointment of Kost, Forer, Gabbay & Kasierer, a member firm of Ernst & Young Global, as the Company's independent registered public accounting firm for the fiscal year ending Dec. 31, 2016, and until the next Annual Meeting, and to authorize the Audit committee and the Board of Directors of the Company to determine the remuneration of KFGK in accordance with the volume and nature of their services. About Rosetta Based in Rehovot, Israel, Rosetta Genomics Ltd. is seeking to develop and commercialize new diagnostic tests based on a recently discovered group of genes known as microRNAs. MicroRNAs are naturally expressed, or produced, using instructions encoded in DNA and are believed to play an important role in normal function and in various pathologies. The Company has established a CLIA- certified laboratory in Philadelphia, which enables the Company to develop, validate and commercialize its own diagnostic tests applying its microRNA technology. Rosetta Genomics reported a loss from continuing operations of US$17.34 million on US$8.26 million of total revenues for the year ended Dec. 31, 2015, compared to a loss from continuing operations of US$14.52 million on US$1.32 million of total revenues for the year ended Dec. 31, 2014. As of Dec. 31, 2015, Rosetta had US$22.4 million in total assets, US$2.80 million in total liabilities and US$19.62 million in total shareholders' equity. SABINE OIL: Reorganization Plan Takes Effect, Exits Chapter 11 -------------------------------------------------------------- Sabine Oil & Gas Corporation on Aug. 11, 2016, disclosed that its Chapter 11 Plan of Reorganization, which was confirmed by the United States Bankruptcy Court for the Southern District of New York on July 27, 2016, has gone effective and the Company has emerged from bankruptcy as a private company. In conjunction with its emergence from Chapter 11, the Company closed on its new senior secured credit facility, which has commitments of $200 million and an initial borrowing base of $150 million, and on its new $150 million second lien term loan. The Company completed an effective balance sheet restructuring that involved a debt-for-debt exchange, a debt-to-equity conversion, and the issuance of warrants to purchase stock in the newly-formed parent holding company of the reorganized Company. The Company emerged from bankruptcy with a significantly stronger balance sheet and renewed ability to focus on creating value from its compelling asset base. Chief Executive Officer David Sambrooks stated, "Sabine has successfully restructured its balance sheet, addressing its leverage and liquidity needs. Throughout this process we have valued and appreciated the support and guidance of our outgoing board of directors as well as our professional advisors. Above all, I am humbled by the dedication and outstanding effort of our employees, and have great optimism for the next chapter of our organization. We look forward to working under the guidance of our new, remarkably experienced board to create value for our new ownership group." The Company intends to file a Form 15 with the Securities and Exchange Commission (the "SEC") terminating the registration of its securities under Section 12(g) of the Securities Exchange Act of 1934 (the "Exchange Act") and suspending its reporting obligations under Section 15(d) of the Exchange Act. As a result of such filing, the Company will no longer be obligated to and will not file any further current or periodic reports with the SEC. Court filings and other information related to the restructuring proceedings are available at a website administered by the Company's claims agent, Prime Clerk, at https://cases.primeclerk.com/sabine, or via telephone at 866-692-6696 (toll free). About Sabine Oil & Gas Corporation Sabine Oil & Gas Corp. is an independent energy company engaged in the acquisition, production, exploration, and development of onshore oil and natural gas properties in the U.S. The Company's current operations are principally located in the Cotton Valley Sand and Haynesville Shale in East Texas, the Eagle Ford Shale in South Texas, the Granite Wash in the Texas Panhandle, and the North Louisiana Haynesville. The Company operates, or has joint working interests in, approximately 2,100 oil and gas production sites (approximately 1,800 operating and approximately 315 non-operating) and has approximately 165 full-time employees. Sabine Oil and its affiliated entities sought Chapter 11 Protection (Bankr. S.D.N.Y. Lead Case No. 15-11835) in Manhattan on July 15, 2015. The Debtors have engaged Kirkland & Ellis LLP and Kirkland & Ellis International LLP, as counsel; Lazard Freres & Co. LLC, as investment banker and Prime Clerk LLC as notice, claims and balloting agent. The Debtors also tapped Zolfo Cooper Management, LLC, to provide Jonathan A. Mitchell as CRO and other additional personnel. The U.S. Trustee for Region 2 appointed five creditors to serve on the official committee of unsecured creditors. The Committee is represented by Mark R. Somerstein, Esq., Keith H. Wofford, Esq., and D. Ross Martin, Esq., at Ropes & Gray LLP as their counsel. The Committee has also engaged Blackstone Advisory Partners L.P. as investment banker; and Berkeley Research Group, LLC as financial advisor. SCIENTIFIC GAMES: Names Kevin Sheehan as New President and CEO -------------------------------------------------------------- Scientific Games Corporation announced that Kevin Sheehan succeeded M. Gavin Isaacs as president and chief executive officer of the Company, effective as of Aug. 4, 2016. The Company's Board of Directors also appointed Mr. Sheehan to serve as a director of the Company, effective as of the Effective Date. In his role as a director, Mr. Sheehan will also serve on the executive and finance committee and the compliance committee of the Board. Upon the Effective Date, Mr. Isaacs became the vice chairman of the Board and will remain an employee of the Company through December 31, 2016, at which point it is expected that Mr. Isaacs will become a consultant to the Company. There are no disagreements between Mr. Isaacs and the Board or management and his transition is not related to the Company's operations, policies, practices or any issues regarding the integrity of the Company's financial statements or accounting policies and practices. Mr. Sheehan, 63, served as chief executive officer of NCL Corporation Ltd., a leading global cruise line operator, from November 2008 through January 2015 and President of Norwegian Cruise Line from August 2010 through January 2015 (and previously from August 2008 through March 2009). Mr. Sheehan also served as Chief Financial Officer of Norwegian Cruise Line from November 2007 until September 2010. Before joining Norwegian Cruise Line, Mr. Sheehan served as a consultant to private equity firms, including Cerberus Capital Management LP (2006-2007) and Clayton Dubilier & Rice (2005-2006). From August 2005 to January 2008, Mr. Sheehan served on the faculty of Adelphi University as a Distinguished Visiting Professor of accounting, finance and economics. Prior to that, Mr. Sheehan held various senior executive roles at Cendant Corporation, including serving as Chairman of the board of directors and chief executive officer of Cendant Corporation's Vehicle Services Division from January 2003 to May 2005. He also served as the Chief Financial Officer of Cendant Corporation from March 2001 to May 2003. Mr. Sheehan is currently the John J. Phelan, Jr. Distinguished Professor at the Robert B. Willumstad School of Business at Adelphi University. Mr. Sheehan currently serves on the board of directors of Dave & Buster's Entertainment, Inc., New Media Investment Group Inc., and Bob Evans Farms Inc. The Company has entered into an employment agreement with Mr. Sheehan which begins on the Effective Date and extends through Aug. 3, 2019, subject to automatic extension for an additional year at the end of the term and each anniversary thereof unless timely notice of non-renewal is given by either the Company or Mr. Sheehan. Under the Employment Agreement, Mr. Sheehan will receive an annual base salary of $1,800,000 and will have the opportunity to earn up to 100% of his base salary as incentive compensation upon achievement of target level performance goals for a given year and the opportunity to earn up to 200% of his base salary upon achievement of maximum performance goals for a given year. Mr. Sheehan is also entitled to reimbursement for his relocation to Las Vegas, Nevada to work from the Company's headquarters. For 2016, Mr. Sheehan will receive incentive compensation equal to $900,000. The Company will grant to Mr. Sheehan in 2017 equity awards with a grant date fair value equal to approximately 250% of his base salary. Beginning in 2018, Mr. Sheehan will be eligible to receive annual equity awards currently expected to have a grant date value targeted at approximately 250% of his base salary, generally in the discretion of the Compensation Committee of the Board in accordance with the Company's plans and programs for senior executives of the Company. On Aug. 10, 2016, Mr. Sheehan will receive sign-on equity awards consisting of (a) 400,000 performance-conditioned restricted stock units that will vest based on achievement of specified performance conditions over a three-year period and (b) equity awards with a grant date value equal to approximately 250% of his base salary, prorated based on the number of days Mr. Sheehan will be employed in 2016, and consisting of (i) restricted stock units and stock options, each with a four-year vesting schedule, with the vesting dates falling on March 20 of 2017, 2018, 2019 and 2020 and (ii) performance-conditioned stock options vesting over a four-year period (with the vesting dates also being March 20 of 2017, 2018, 2019 and 2020) subject to the same performance condition as is applicable to the performance-conditioned stock options granted to the Company's other executive officers on June 21, 2016. The sign-on equity awards were approved as employment inducement grants pursuant to NASDAQ Listing Rule 5635(c)(4). Modification Agreement with Mr. Isaacs On Aug. 4, 2016, the Company entered into a modification agreement with Mr. Isaacs, effective as of the Effective Date, pursuant to which the parties agreed to amend certain terms of Mr. Isaacs existing employment agreement, dated as of June 9, 2014, and amended on Oct. 29, 2015. The Modification Agreement provides that upon the Effective Date, Mr. Isaacs will cease to serve as president and chief executive officer of the Company and will become vice chairman of the Board and that the term under the Existing Isaacs Employment Agreement will be modified so that it ends on Dec. 31, 2016, with Mr. Isaacs remaining an employee of the Company through such date. The provisions of the Existing Isaacs Employment Agreement relating to Mr. Isaacs' compensation and benefits will remain in effect throughout the remainder of the term of the agreement, as modified. The Modification Agreement also provides that the term of the restrictive covenants contained in the Existing Isaacs Employment Agreement will be extended so that they are effective until the date that is 24 months following Mr. Isaacs' termination of employment. Pursuant to the Modification Agreement, provided that Mr. Isaacs remains employed with the Company through Dec. 31, 2016, and executes and does not revoke a release of claims in favor of the Company and its affiliates, a consulting agreement between Mr. Isaacs and the Company will become effective as of Jan. 1, 2017, providing for Mr. Isaacs' continued services to the Company as a consultant through June 30, 2018, subject to extension upon agreement by Mr. Isaacs and the Company. During the term of the Consulting Agreement, Mr. Isaacs will be entitled to (a) a monthly consulting fee of $83,333.33, (b) payment of an amount equal to COBRA premiums for the term of the Consulting Agreement and while Mr. Isaacs is eligible for COBRA coverage, less the amount of employee contributions for similarly-situated active employees, if Mr. Isaacs elects to continue medical coverage under the Company’s group health plan in accordance with COBRA, and (c) the opportunity to receive a discretionary bonus for 2017. The Modification Agreement and the Consulting Agreement provide that any unvested equity awards held by Mr. Isaacs as of December 31, 2016, will remain outstanding and continue to vest in accordance with their vesting schedule, subject to Mr. Isaac's continued service as a consultant through the applicable vesting date and achievement of any applicable performance criteria, provided that any such equity awards that remain outstanding on June 30, 2018, will immediately vest as of such date if Mr. Isaacs is still providing services to the Company as of such date, subject to achievement of any applicable performance criteria. In the event that the Company terminates the Consulting Agreement prior to June 30, 2018, without "Cause", Mr. Isaacs will be entitled to receive the monthly consulting fee through June 30, 2018, and Mr. Isaac's equity awards will be treated as if he had continued providing services to the Company through June 30, 2018. About Scientific Games Scientific Games Corporation is a developer of technology-based products and services and associated content for worldwide gaming and lottery markets. The Company's portfolio includes instant and draw-based lottery games; electronic gaming machines and game content; server-based lottery and gaming systems; sports betting technology; loyalty and rewards programs; and social, mobile and interactive content and services. Visit http://www.scientificgames.com/ Scientific Games reported a net loss of $1.39 billion on $2.75 billion of total revenue for the year ended Dec. 31, 2015, compared to a net loss of $234.3 million on $1.78 billion of total revenue for the year ended Dec. 31, 2014. As of June 30, 2016, Scientific Games had $7.46 billion in total assets, $9.13 billion in total liabilities and a $1.66 billion total stockholders' deficit. * * * The TCR reported on May 21, 2014, that Moody's Investors Service downgraded Scientific Games Corporation's ("SGC") Corporate Family Rating to 'B1'. The downgrade reflects Moody's view that slower than expected growth in SGC's Gaming and Instant Products segments will cause Moody's adjusted leverage to exceed 6.0 times by the end of 2014. As reported by the TCR on Aug. 5, 2014, Standard & Poor's Ratings Services lowered its corporate credit rating to 'B+' from 'BB-' on Scientific Games Corp. "The downgrade and CreditWatch placement follow Scientific Games' announcement that it has agreed to acquire Bally Technologies for $5.1 billion, including the refinancing of about $1.8 billion in net debt at Bally," said Standard & Poor's credit analyst Ariel Silverberg. SCOTT SWIMMING: Has Until Aug. 31 to Use Cash Collateral -------------------------------------------------------- Judge Julie A. Manning of the U.S. Bankruptcy Court for the District of Connecticut authorized Scott Swimming Pools Inc. to use cash collateral until Aug. 31, 2016. The Debtor is indebted to Webster Bank in the amount of $451,000 as of the Petition Date. The indebtedness is secured by liens and/or security interests in substantially all of the Debtor's assets. The Debtor related that substantially all of its revenue is derived from contracts and receivables obtained from operating its pool business. The Debtor was authorized to collect and use the prepetition collateral, including cash collateral, to continue its usual and ordinary operations in the ordinary course of its business, by paying for the budgeted expenditures set forth in the approved Budget. The approved Budget for August 2016 provided for total expenses in the amount of $455,330. Judge Manning granted Webster Bank postpetition claims against the Debtor's estate, which will have priority in payment over any other indebtedness and/or obligations and over all administrative expenses or charges against property, subject only to the Carve-Out. Webster Bank was also granted a replacement lien and/or security interest in the Debtor's post-petition assets, in the same nature, priority and extent as the liens and/or security interests of Webster Bank in the Pre-petition Collateral and its proceeds, subject to the Carve-Out. The Carve-Out consists of: (a) the allowed administrative claims of attorneys and other professionals retained by the Debtor in the Case, in the aggregate amount of $25,000; and (b) amounts payable pursuant to 28 U.S.C. Section 1930(a)(6). A further hearing on the continued use of cash collateral is scheduled on Aug. 31, 2016, at 11:00 a.m. A full-text copy of the Order, dated Aug. 3, 2016, is available at https://is.gd/asd4NL About Scott Swimming Pools Based in Woodbury, Conn., Scott Swimming Pools, Inc., constructs, sells and services swimming pools. The company filed a chapter 11 petition (Bankr. D. Conn. Case No. 15-50094) on Jan. 22, 2014. The petition was signed by James M. Scott, president. The Debtor is represented by James M. Nugent, Esq., at Harlow, Adams, and Friedman, P.C., in Milford, Conn. The case is assigned to Judge Alan H.W. Shiff. At the time of the filing, the Debtor said it had no assets and owed creditors $3.79 million. SEA LEVEL VIEW: Case Summary & Unsecured Creditor ------------------------------------------------- Debtor: Sea Level View Inc. 10120 South Eastern Avenue, Suite 200 Henderson, NV 89052 Case No.: 16-14394 Nature of Business: Single Asset Real Estate Chapter 11 Petition Date: August 10, 2016 Court: United States Bankruptcy Court District of Nevada (Las Vegas) Judge: Hon. Laurel E. Davis Debtor's Counsel: Matthew L. Johnson, Esq. JOHNSON & GUBLER, P.C. 8831 West Sahara Avenue Las Vegas, NV 89117 Tel: (702) 471-0065 Fax: (702) 471-0075 E-mail: annabelle@mjohnsonlaw.com mjohnson@mjohnsonlaw.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Paolo Cammarata, owner. The Debtor listed the Los Angeles County Tax Collector as its largest unsecured creditor holding a claim of $39,021. A full-text copy of the petition is available for free at: http://bankrupt.com/misc/nvb16-14394.pdf SEQUENOM INC: To be Acquired by LabCorp for $2.40 Per Share ----------------------------------------------------------- Laboratory Corporation of America Holdings announced the commencement of its cash tender offer for all outstanding shares of the common stock of Sequenom, Inc. (NASDAQ: SQNM) for $2.40 per share. The tender offer is being made by Savoy Acquisition Corp., a wholly owned subsidiary of LabCorp, pursuant to an offer to purchase, dated Aug. 9, 2016. LabCorp and Sequenom previously announced that they entered into an agreement and plan of merger, dated as of July 26, 2016, for LabCorp to acquire Sequenom. The board of directors of Sequenom, Inc., has determined that the merger agreement, the offer and the merger are fair and advisable to, and in the best interests of Sequenom and its stockholders. The Sequenom board also agreed that the merger agreement will be effected under Section 251(h) of the Delaware General Corporation Law, approved the merger agreement, the offer, the merger and the other transactions contemplated thereby, and recommended that Sequenom stockholders accept the offer and tender their shares in the offer. The tender offer and any withdrawal rights are scheduled to expire at 12:01 a.m., New York City Time, on Wednesday, Sept. 7, 2016, unless the tender offer is extended. Following the successful completion of the tender offer, LabCorp expects to merge Savoy Acquisition Corp. into Sequenom without a vote of the stockholders of Sequenom, resulting in any shares not purchased in the tender offer being converted into the right to receive the same cash price per share as paid in the tender offer. The tender offer and the merger are subject to customary closing conditions set forth in the merger agreement, including the acquisition by Savoy Acquisition Corp. of a majority of Sequenom's outstanding shares at the time of the consummation of the offer and the expiration or early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended. The closing of the acquisition is expected by year end. The complete terms and conditions of the tender offer are set forth in the offer to purchase, letter of transmittal and other related materials filed with the Securities and Exchange Commission on Aug. 9, 2016, as exhibits to a tender offer statement on Schedule TO filed by LabCorp and Savoy Acquisition Corp. In addition, on Aug. 9, 2016, Sequenom filed a solicitation/recommendation statement on Schedule 14D-9 with the SEC related to the tender offer. About LabCorp Laboratory Corporation of America Holdings (NYSE: LH), an S&P 500 company, is a healthcare diagnostics company, providing comprehensive clinical laboratory and end-to-end drug development services. With a mission to improve health and improve lives, LabCorp delivers world-class diagnostic solutions, brings innovative medicines to patients faster and develops technology-enabled solutions to change the way care is provided. With net revenue in excess of $8.5 billion in 2015, LabCorp's 50,000 employees serve clients in 60 countries. To learn more about LabCorp, visit www.labcorp.com, and to learn more about Covance Drug Development, visit www.covance.com. About Sequenom Sequenom, Inc. (NASDAQ: SQNM) -- http://www.sequenom.com/-- is a life sciences company committed to improving healthcare through revolutionary genetic analysis solutions. Sequenom develops innovative technology, products and diagnostic tests that target and serve discovery and clinical research, and molecular diagnostics markets. The company was founded in 1994 and is headquartered in San Diego, California. Sequenom reported a net loss of $16.3 million on $128 million of total revenues for the year ended Dec. 31, 2015, compared to net income of $1.01 million on $152 million of total revenues for the year ended Dec. 31, 2014. As of June 30, 2016, Sequenom had $97.3 million in total assets, $152 million in total liabilities and a $54.5 million total stockholders' deficit. SOLAR POWER: Announces New Management Appointments -------------------------------------------------- SPI Energy Co., Ltd., has strengthened its senior management team with two key appointments. Effective Aug. 1, 2016, Mr. Kevin Qi will join SPI Energy as senior vice president in charge of corporate development and capital markets and effective July 1, 2016, Mr. Minghua Zhao became joint chief operating officer of the Company's China domestic business. Mr. Qi has more than 17 years of experience dealing with cross-border fund raising and capital market transactions in Asia and globally and has a successful investment and asset management track record. He has served as managing director and Head of Credit Opportunities Fund at China Merchants Capital in Hong Kong since May 2013, overseeing the establishment and performance of the US$400 million fund. Mr. Qi served as a Managing Director at Bank of America Merrill Lynch from 2007 to 2013 where he was the head of the Greater China global loans and special situation group. Prior to that, he held senior management roles at other global investment banks including Citigroup, Credit Suisse and UBS. Mr. Qi obtained a Bachelor's Degree in Physical Oceanography at Ocean University of China, a Ph.D. in Physical Oceanography at Oregon State University and an MBA at University of Chicago, Booth School of Business. Mr. Zhao, who joined SPI Energy in February 2015 and has served as SVP of the Company's finance service business, brings 19 years of business management, finance, investment and risk management experience to the Company. He previously served as general manager of Suzhou Industrial Park Chengcheng Enterprises Guarantee Co., Ltd., a financial services company, and from 2003 to 2009 as president of Suzhou Industrial Park Branch of Suzhou Bank. Prior to that, he worked at CITIC Bank for six years. Mr. Zhao graduated from Jiangsu Province Business School in 1997 with a degree in Business Administration and from Southwestern University of Finance and Economics in 2008 with a degree in Business Management. "Mr. Qi is a proven financial leader with a deep understanding of capital markets and corporate strategy and we are delighted to have him join our senior management team," said Xiaofeng Peng, chairman and CEO of SPI Energy. "We are also pleased to have Mr. Zhao step into the position of joint COO working closely with Hoong Khoeng Cheong, COO of our overseas operations. Mr. Zhao will be responsible for steering our growing China operations which span a wide range of online and offline businesses. They both bring many years of valuable experience to SPI Energy and will help drive our corporate development in a global context as we take advantage of the evolving green energy market opportunities at home and abroad." About Solar Power Roseville, Cal.-based Solar Power, Inc., is a global solar energy facility developer offering its own brand of high- quality, low-cost distributed generation and utility-scale SEF development services. Primarily, the Company works directly with and for developers around the world who hold large portfolios of SEF projects for whom it serves as an engineering, procurement and construction contractor. The Company also performs as an independent, turnkey SEF developer for one-off distributed generation and utility-scale SEFs. Solar Power reported a net loss of $5.19 million in 2014, a net loss of $32.2 million in 2013 and a net loss of $25.4 million in 2012. As of Sept. 30, 2015, the Company had $727 million in total assets, $431 million in total liabilities and $296 million in total equity. STACEY TYLER: Court to Take Up Liquidating Plan on Sept. 22 ----------------------------------------------------------- A U.S. bankruptcy court will consider approval of the Chapter 11 plan of reorganization of Stacey Tyler at a hearing on September 22. The U.S. Bankruptcy Court for the Southern District of Texas will hold the hearing at 2:00 p.m. (Houston time), at the U.S. Courthouse, Courtroom 400, 4th Floor, 515 Rusk, Houston, Texas. The court will also consider at the hearing the final approval of the Debtor's disclosure statement, which it conditionally approved on August 9. The court order set a September 14 deadline for creditors to cast their votes and file their objections. About Stacey Tyler Stacey Tyler sought protection under Chapter 11 of the Bankruptcy Code (Bankr. S. D. Texas Case No. 15-31257). The case is assigned to Judge David R. Jones. STELLAR BIOTECHNOLOGIES: Incurs $1.19-Mil. Net loss in 2nd Quarter ------------------------------------------------------------------ Stellar Biotechnologies, Inc., filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $1.19 million on $181,092 of revenues for the three months ended June 30, 2016, compared to net income of $463,986 on $157,748 of revenues for the three months ended June 30, 2015. For the nine months ended June 30, 2016, the Company reported a net loss of $3.68 million on $995,587 of revenues compared to a net loss of $1.30 million on $558,036 of revenues for the same period last year. As of June 30, 2016, Stellar had $8.50 million in total assets, $839,002 in total liabilities, all current, and $7.66 million in total shareholders' equity. "The Stellar team is very pleased to report another period of positive momentum on all fronts with continued growth in revenues, a successful institutional financing, and formation of our joint venture company Neostell," said Frank Oakes, president and chief executive officer of Stellar Biotechnologies, Inc. "Our growth plans are now bolstered by a stronger balance sheet, providing a runway from which we can execute on key programs that we believe will position Stellar to be the leading KLH company in the field of active immunotherapy." Working capital position as of June 30, 2016, was $6.89 million, compared to $7.49 million as of Sept. 30, 2015. Cash, cash equivalents and short-term investments totaled $6.79 million at June 30, 2016, compared to $8.97 million at September 30, 2015. Subsequent to June 30, 2016, we completed a Registered Direct Offering of common shares and private placement of unregistered warrants for net proceeds of approximately $6 million. A full-text copy of the Form 10-Q is available for free at: https://is.gd/jPSRQn About Stellar Port Hueneme, Cal.-based Stellar Biotechnologies, Inc.'s business is to commercially produce and market Keyhole Limpet Hemocyanin ("KLH") as well as to develop new technology related to culture and production of KLH and subunit KLH ("suKLH") formulations. The Company markets KLH and suKLH formulations to customers in the United States and Europe. KLH is used extensively as a carrier protein in the production of antibodies for research, biotechnology and therapeutic applications. Stellar Biotechnologies reported a net loss of $8.43 million for the year ended Aug. 31, 2014, a net loss of $14.5 million for the year ended Aug. 31, 2013, and a net loss of $5.52 million for the year ended Aug. 31, 2012. Stellar Biotechnologies reported a net loss of $2.84 million on $758,689 of revenues for the year ended Sept. 30, 2015. STEREOTAXIS INC: Reports 2016 Second Quarter Financial Results -------------------------------------------------------------- Stereotaxis, Inc., reported a net loss of $2.33 million on $7.87 million of total revenue for the three months ended June 30, 2016, compared to a net loss of $1.53 million on $9.66 million of total revenue for the same period in 2015. For the six months ended June 30, 2016, the Company reported a net loss of $4.60 million on $16.5 million of total revenue compared to a net loss of $4.67 million on $19.2 million of total revenue for the same period last year. As of June 30, 2016, Stereotaxis had $16.3 million in total assets, $37.9 million in total liabilities and a total stockholders' deficit of $21.7 million. "This is our 10th consecutive quarter of year-over-year growth in ventricular tachycardia (VT) procedures and the fourth quarter in a row that we have driven VT volume growth above 20%," said William C. Mills, Stereotaxis chief executive officer. "Our success reflects ongoing efforts to build on a steadily growing body of clinical evidence supporting the capability of our technologies to significantly outperform traditional therapies in safety, acute success and long-term outcomes for this very difficult, life-changing procedure. As more physicians turn to and become proficient using our Niobe magnetic navigation system for VT ablation, we move closer to becoming the standard of care for a complex intervention that is growing worldwide at an average annual rate of 10%. While we continue to gain market share in VT, our increased volume in combination with strong service revenue has resulted in consistently healthy, high-margin recurring revenues. "During the second quarter, we were pleased to celebrate the launch of our Niobe ES system at several prestigious medical institutions, including Kakogawa Central City Hospital in Japan, which held an opening ceremony for the public and healthcare community in June. Kakogawa represents our second system installation in Japan and the first in this prefecture of 5.5 million people to offer remotely controlled interventions for cardiac arrhythmias, as part of a new, expanded state-of-the-art facility. We also completed the installation and clinical start-up of our Niobe system and Vdrive robotic navigation system at Montreal Heart Institute, our first customer site in the province of Quebec. "Furthering our commitment to product advancements that yield better outcomes through improved lesion creation in all four chambers of the heart, we announced the market release of our second generation V-CAS Deflect catheter advancement system in Europe. The V-CAS Deflect system is designed to remotely control a proprietary robotic deflectable sheath, which supports better stability and maneuverability of the magnetic ablation catheter during a procedure using the Niobe system. With this iteration, we have included features to enhance the mapping and maneuverability of the deflectable sheath in challenging anatomies, which we expect to deliver safer, more efficient and efficacious single-operator procedures for complex arrhythmias," Mr. Mills concluded. At June 30, 2016, Stereotaxis had cash and cash equivalents of $3.9 million and unused borrowing capacity of $1.0 million on its revolving line of credit, resulting in total liquidity of $4.9 million. At June 30, 2016, total debt was $21.1 million, which consisted of $3.0 million borrowed against the revolving line of credit and the remaining balance related to HealthCare Royalty Partners long-term debt. A full-text copy of the press release is available for free at: https://is.gd/8ZPReh About Stereotaxis Based in St. Louis, Missouri, Stereotaxis, Inc., is a manufacturer and developer of a suite of navigation systems in interventional surgical procedures. The Company's Epoch Solution is used in the treatment of arrhythmias and coronary artery disease. Stereotaxis reported a net loss of $7.35 million on $37.7 million of total revenue for the year ended Dec. 31, 2015, compared to a net loss of $5.20 million on $35.01 million of total revenue for the year ended Dec. 31, 2014. In its report on the Company's consolidated financial statements for the year ended Dec. 31, 2015, Ernst & Young LLP, in St. Louis, Missouri, issued a "going concern" qualification stating that the Company has incurred recurring losses from operations and has a net capital deficiency that raise substantial doubt about the Company's ability to continue as a going concern. STEVEN PALLADINO: College May Keep Tuition Paid by Bankrupt Parents ------------------------------------------------------------------- Katy Stech, writing for The Wall Street Journal Pro Bankruptcy, reported that a federal bankruptcy judge ruled that Sacred Heart University can keep roughly $65,000 in tuition money in a legal battle that's grown more common as the cost of college rises and tuition payments become a popular target of bankruptcy trustees. According to the report, U.S. Bankruptcy Judge Melvin Hoffman ruled that Steven and Lori Palladino benefited from paying their daughter's tuition at the private Connecticut university. The decision allows the school to avoid returning the money -- paid between March 2012 and March 2014 -- to a court-appointed trustee who sought the money to pay debts as part of the Massachusetts couple's 2014 bankruptcy, the report related. "A parent can reasonably assume that paying for a child to obtain an undergraduate degree will enhance the financial well-being of the child which in turn will confer an economic benefit on the parent," Judge Hoffman wrote in the nine-page ruling, the report further related. With his ruling, Judge Hoffman became the first judge in recent years to weigh in on bankruptcy trustees who sue universities -- and sometimes, college students themselves -- to take back tuition that had been paid by parents years before, the report said. Trustees argue that because bankrupt parents don't benefit from paying children's college tuition, those payments should be taken back and made available to pay the parents' other debts, the report added. Most colleges have settled, agreeing to return a total of at least $276,434.80 since 2014, a Wall Street Journal analysis found. WSJ related that in the Palladino case, bankruptcy trustee Mark DeGiacomo argued that Sacred Heart University's tuition payments should be redirected to victims of a multimillion-dollar Ponzi scheme that Mr. Palladino orchestrated. He pleaded guilty to federal and state criminal charges, and in 2014 a Massachusetts court sentenced him to 10 years in prison, the report said, citing bankruptcy-court documents. Ms. Palladino pleaded guilty and was sentenced to five years of probation, the report added. SUNCOAST LED: 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 Suncoast LED Displays, LLC. Suncoast LED Displays LLC sought protection under Chapter 11 of the Bankruptcy Code (Bankr. M.D. Fla. Case No. 16-05408) on June 23, 2016. SUNEDISON INC: NRG Energy Bids for Wind and Solar Projects ---------------------------------------------------------- Jacqueline Palank, writing for The Wall Street Journal Pro Bankruptcy, reported that SunEdison Inc. is seeking bankruptcy-court approval to sell a number of North American solar- and wind-power projects to NRG Energy Inc. for $144 million, subject to higher bids. According to the report, SunEdison on Aug. 9 filed papers in its chapter 11 case outlining plans to auction its ownership stakes in the companies that construct large-scale renewable-energy facilities and sell wind or solar power to utility and other customers. The projects up for sale are located in Utah, California, Maine, Hawaii, Texas and Washington, the report related, citing court papers. The value of NRG's $144 million bid could ultimately climb to $188 million, as it includes the potential for SunEdison to collect up to $44 million after the sale closes depending upon the achievement of certain milestones related to the projects, the report further related. SunEdison wants to declare NRG's renewable-energy unit the stalking horse, or lead, bidder in a sale process that would include a Sept. 6 deadline for bids, Sept. 9 auction and Sept. 15 court hearing to approve the winning bid, the report said. In return for setting a floor price for the assets, court papers show NRG could collect a $4.5 million expense reimbursement and $5.5 million breakup fee if a rival bidder prevails, the report added. About SunEdison, Inc. SunEdison, Inc., (OTC PINK: SUNEQ) is a developer and seller of photovoltaic energy solutions, an owner and operator of clean power generation assets, and a global leader in the development, manufacture and sale of silicon wafers to the semiconductor industry. On April 21, 2016, SunEdison, Inc., and 25 of its affiliates each filed a Chapter 11 bankruptcy petition (Bankr. S.D.N.Y. Case Nos. 16-10991 to 16-11017). Martin H. Truong signed the petitions as senior vice president, general counsel and secretary. Five affiliates of SunEdison, Inc. and certain of its subsidiaries on August 9, 2016, commenced cases by filing petitions for relief under the Bankruptcy Code in the Bankruptcy Court, namely: Buckthorn Renewables Holdings, LLC (Case No. 16-12298), Greenmountain Wind Holdings, LLC (Case No. 16-12299), Rattlesnake Flat Holdings, LLC (Case No. 16-12300), Somerset Wind Holdings, LLC (Case No. 16-12301), and SunE Waiawa Holdings, LLC (Case No. 16-12302). The Debtors disclosed total assets of $20.71 billion and total debts of $16.14 billion as of Sept. 30, 2015. The Debtors have hired Skadden, Arps, Slate, Meagher & Flom LLP as counsel, Togut, Segal & Segal LLP as conflicts counsel, Rothschild Inc. as investment banker and financial advisor, McKinsey Recovery & Transformation Services U.S., LLC, as restructuring advisors and Prime Clerk LLC as claims and noticing agent. The Debtors employed PricewaterhouseCoopers LLP as financial advisors; and KPMG LLP as their auditor and tax consultant. An official committee of unsecured creditors has been appointed in the case. The committee tapped Weil, Gotshal & Manges LLP as its general bankruptcy counsel and Morrison & Foerster LLP as special counsel. SUNEDISON INC: Three Affiliates' Voluntary Chapter 11 Case Summary ------------------------------------------------------------------ Affiliates of SunEdison, Inc., filing separate Chapter 11 bankruptcy petitions: Debtor Case No. ------ -------- SunE MN Development, LLC 16-12314 7550 Wisconsin Avenue, 9th Floor Bethesda, MD 20814 SunE MN Development Holdings, LLC 16-12315 SunE Minnesota Holdings, LLC 16-12316 Chapter 11 Petition Date: August 10, 2016 Court: United States Bankruptcy Court Southern District of New York (Manhattan) Judge: Hon. Stuart M. Bernstein Debtors' Counsel: Jay M. Goffman, Esq. SKADDEN, ARPS, SLATE, MEAGHER & FLOM LLP Four Times Square New York, NY 10036 Tel: (212) 735-3000 Fax: (212) 735-2000 E-mail: Jay.Goffman@skadden.com - and - J. Eric Ivester, Esq. SKADDEN, ARPS, SLATE, MEAGHER & FLOM LLP 4 Times Square New York, NY 10036 Tel: (212) 735-3000 Fax: (212) 735-2000 E-mail: eric.ivester@skadden.com Debtors' Conflicts Counsel: TOGUT, SEGAL & SEGAL LLP Debtors' Investment Banker and Financial Advisor: ROTHSCHILD INC Debtors' Restructuring Advisor: MCKINSEY RECOVERY & TRANSFORMATION SERVICES U.S., LLC Debtors' Claims & Noticing Agent: PRIME CLERK LLC Estimated Assets: $50 million to $100 million Estimated Debts: $0 to $50,000 The petition was signed by Patrick Cook, authorized signatory. The Debtors did not include a list of their largest unsecured creditors when they filed the petitions. SYSTEM SOLDING: Names James Yan as Counsel ------------------------------------------ System Solding (USA) Inc. seeks authorization from the U.S. Bankruptcy Court for the Central District of California to employ James S. Yan as counsel. The Debtor requires Mr. Yan to: (a) give the Debtor legal advice with respect to its powers and duties as Debtor-in-Possession in the continued management of its financial affairs and property; (b) negotiate with any secured creditors regarding their secured claims; (c) negotiate with creditors regarding post-petition transactions; (d) prepare on behalf of the Debtor as Debtor-in-Possession necessary applications, answers, orders, reports and other legal papers; (e) prepare a disclosure statement and a plan of reorganization for the Court's approval; (f) perform all other legal services for the Applicant as Debtor-in-Possession which may be necessary herein. The Debtor will compensate Mr. Yan at his standard hourly rate of $300. The Debtor has paid to Mr. Yan a pre-petitioner retainer in the amount of $33,000 as an advance against pre-petition and post-petition fees and costs. There is no provision regarding replenishment thereof. The pre-petition attorney's fee, filing fee and costs amount to a total of $17,729.95. The amount of $15,270.05 representing an advance against postpetition fees and costs was deposited into a segregated trust account. All post-petition retainers, if any, will be deposited into the same segregated trust account. The counsel will also be reimbursed for reasonable out-of-pocket expenses incurred. James S. Yan assured the Court that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtors and their estates. The counsel can be reached at: James S. Yan, Esq. LAW OFFICES OF JAMES S. YAN 980 S. Arroyo Parkway, Suite 250 Pasadena, CA 91105 Tel: (626) 405-0872 Fax: (626) 405-0970 E-mail: jsyan@msn.com About System Solding System Solding (USA) Inc., based in Rancho Dominguez, Calif., provides waste and environmental services and equipment. The company filed a Chapter 11 petition (Bankr. C.D. Calif. Case No. 16-18813) on July 1, 2016. The Hon. Vincent P. Zurzolo presides over the case. James S. Yan, Esq. as bankruptcy counsel. In its petition, the Debtor estimated $10 million to $50 million in assets and $1 million to $10 million in liabilities. The petition was signed by Chunming Li, president. TAYLOR BEAN: PwC Fights $5.6-Bil. Fraud Trial Over Collapse ----------------------------------------------------------- Susannah Nesmith and Sophia Pearson, writing for Bloomberg News, reported that PricewaterhouseCoopers LLP failed to spot for seven years a multibillion fraud that led to the demise of Taylor Bean & Whitaker Mortgage Corp., a lawyer for the lender's bankruptcy trustee told a Miami jury on Aug. 9, 2016. According to the report, at issue is PwC's work for Colonial Bank, which bought mortgages that Taylor Bean originated. Had PwC adequately vetted documents that Taylor Bean gave to the bank, it would have spotted a multiyear fraud by executives at both firms far earlier and put an end to it, the trustee claims, the report related. Instead, federal regulators uncovered it in 2009 and Taylor Bean and Colonial went bankrupt, the report further related. The bankruptcy trustee sued in 2013 seeking $5.6 billion in damages, the report said. "Year after year, Pricewaterhouse didn't do their job, they didn't follow the rules and they failed to detect the fraud," the report cited Steven Thomas, an attorney for the trustee, as saying in opening statements. Taylor Bean's accountant, Deloitte & Touche, settled similar allegations by the trustee three years ago for an undisclosed amount, the report related. PwC maintains it complied with auditing standards in the Taylor Bean case and accused the mortgage issuer of being responsible for its own losses, the report further related. "Remember, Taylor Bean's owner and half of its board of directors were criminals," Beth Tanis, an attorney for the accounting firm, told jurors, the report said. "They didn't rely on Pricewaterhouse's audit report because they knew about the fraud they were committing." The case is Taylor, Bean & Whitaker Plan Trust v. PricewaterhouseCoopers LLP, 13-033964, Eleventh Judicial Circuit for Miami-Dade County, Florida (Miami). About Taylor Bean Taylor, Bean & Whitaker Mortgage Corp. grew from a small Ocala- based mortgage broker to become one of the largest mortgage bankers in the United States. In 2009, Taylor Bean was the country's third largest direct-endorsement lender of FHA-insured loans of the largest wholesale mortgage lenders and issuer of mortgage backed securities. It also managed a combined mortgage servicing portfolio of approximately $80 billion. The company employed more than 2,000 people in offices located throughout the United States. Taylor Bean sought Chapter 11 protection (Bankr. M.D. Fla. Case No. 09-07047) on Aug. 24, 2009. Taylor Bean filed the Chapter 11 petition three weeks after federal investigators searched its offices. The day following the search, the Federal Housing Administration, Ginnie Mae and Freddie Mac prohibited the company from issuing new mortgages and terminated servicing rights. Taylor Bean estimated more than $1 billion in both assets and liabilities in its bankruptcy petition. Lee Farkas, the former chairman, was sentenced in June to 30 years in federal prison after being convicted on 14 counts of conspiracy and bank, wire and securities fraud in what prosecutors said was a $3 billion scheme involving fake mortgage assets. Jeffrey W. Kelly, Esq., and J. David Dantzler, Jr., Esq., at Troutman Sanders LLP, in Atlanta, Ga., and Russel M. Blain, Esq., and Edward J. Peterson, III, Esq., at Stichter, Riedel, Blain & Prosser, PA, in Tampa, Fla., represent the Debtors. Paul Steven Singerman, Esq., and Arthur J. Spector, Esq., at Berger Singerman PA, in Miami, Fla., represent the Committee. BMC Group, Inc., serves as the claims and noticing agent. Unsecured creditors were expected to receive 3.3% to 4.4% under a Chapter 11 plan approved in July 2011. TIAT CORPORATION: Disclosure Statement Hearing Set for Aug. 24 -------------------------------------------------------------- The Hon. Robert E. Nugent of the U.S. Bankruptcy Court for the District of Kansas will hold on Aug. 24, 2016, at 10:30 a.m. the hearing to consider approval of TIAT Corporation's disclosure statement. A Disclosure Statement and a Chapter 11 plan was filed on July 14, 2016. As reported by the Troubled Company Reporter on Aug. 8, 2016, the Debtor filed with the Court a Chapter 11 plan that proposes to pay Class 6 unsecured creditors a total of $168,000 at the rate of $2,000 per month for seven years. The payment will commence 90 days from the effective date of the plan. About TIAT Corporation TIAT Corporation dba The Inn at Tallgrass -- http://www.theinnattallgrass.com/-- is located in Wichita, Kan. The hotel owner filed a Chapter 11 petition (Bank. D. Kan. Case No. 16-10764) on April 29, 2016, and is represented by Mark J Lazzo, Esq., in Wichita. At the time of the filing, the Debtor disclosed $2.25 million in assets and debts totaling $6.46 million. TOBIN'S RECOVERY: Disclosures OK'd; Plan Hearing Set for Sept. 1 ---------------------------------------------------------------- The Hon. James M. Carr of the U.S. Bankruptcy Court for the Southern District of Indiana has approved the disclosure statement filed on June 8, 2016, relating to Tobin's Recovery Inc.'s Chapter 11 plan filed on June 9, 2016. A hearing to consider confirmation of the plan and any objection or modification to the plan will be held on Sept. 1, 2016, at 10:30 a.m. EDT. As reported by the Troubled Company Reporter on June 30, 2016, the Plan proposes to save the jobs of four independent contractors and pay all administrative and secured claims in full with a 100% distribution to non-priority general unsecured creditors. The Plan will be funded from the Debtor's cash on hand on the effective date, estimated to be $7,000, and the Debtor's ongoing operations. Tobin's Recovery, Inc., an Indiana corporation that provides repossession services to financial institutions, and emergency roadside assistance services, filed a Chapter 11 petition (Bankr. S.D. Ind. Case No. 14-08265) on Sept. 4, 2014. TOTAL COMM: Seeks Authorization to Use Cash Collateral ------------------------------------------------------ Total Comm Systems, Inc., asks the U.S. Bankruptcy Court for the Eastern District of Pennsylvania for authorization to use cash collateral. The Debtor is indebted to the following secured lenders: (1) J D Factors, LLC, in the amount of $3,317,014, which is secured by the Debtor's accounts, general intangibles, chattel paper, electronic chattel paper, instruments, and deposit accounts, among others. (2) McGrath-Rentcorp and TRS-RenTelco, in the amount of $22,778.38. (3) Happy Rock Merchant Solutions, in the amount of $130,324.25, which is secured by a lien on the Debtor's operating accounts, accounts receivables, credit and charge card receivables, deposits, cash equivalents, and contracts, among others. (4) Knight Capital, LLC t/a Knight Capital Funding, in the amount of $182,819.46, which is secured by a lien on any proceeds of the sale of additional receivables to any third party. (5) High Speed Capital, LLC, in the amount of $116,200. (6) Global Funding Experts, LLC, in the amount of $49,811.69, which is secured by the Debtor's fixtures, accounts, inventory, accounts receivable, contract rights, general intangibles, and their proceeds. The Debtor tells the Court that it requires the use of its cash and accounts to continue operations of its business. The Debtor's proposed Budget covers the period beginning with the week ending August 5, 2016 and ending with the week ending September 2, 2016. The Budget provides for total expenses in the amount of $674,100. The Debtor proposes to provide adequate protection to J D Factors, LLC, and any other party asserting a lien on the Debtor's cash or accounts, in the form of a replacement lien of the same extent, priority and validity as existed pre-petition. A full-text copy of the Debtor's Motion, dated Aug. 3, 2016, is available at https://is.gd/hV41ue A full-text copy of the Debtor's proposed Budget, dated Aug. 3, 2016, is available at https://is.gd/Qub76H Total Comm Systems, Inc., is represented by: Thomas D. Bielli, Esq. David M. Klauder, Esq. Nella M. Bloom, Esq. Cory P. Stephenson, Esq. BIELLI & KLAUDER, LLC 1500 Walnut Street, Suite 900 Philadelphia, PA 19102 Telephone: (215) 642-8271 E-mail: tbielli@bk-legal.com dklauder@bk-legal.com nbloom@bk-legal.com cstephenson@bk-legal.com About Total Comm Systems, Inc. Total Comm Systems, Inc. filed a chapter 11 petition (Bankr. E.D. Pa. Case No. 16-15530) on August 3, 2016. The Debtor is a provider of engineering, construction, excavation, installation, and maintenance services for the telecommunications industry. The Debtor is represented by Thomas D. Bielli, Esq., David M. Klauder, Esq., Nella M. Bloom, Esq., and Cory P. Stephenson, Esq., at Bielli & Klauder, LLC. TRACK GROUP: Incurs $1.78 Million Net Loss in Third Quarter ----------------------------------------------------------- Track Group, Inc., filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss attributable to common shareholders of $1.78 million on $6.75 million of total revenues for the three months ended June 30, 2016, compared to a net loss attributable to common shareholders of $2.90 million on $5.44 million of total revenues for the three months ended June 30, 2015. For the nine months ended June 30, 2016, the Company reported a net loss attributable to common shareholders of $5.83 million on $19.7 million of total revenues compared to a net loss attributable to common shareholders of $3.73 million on $14.9 million of total revenues for the nine months ended June 30, 2015. As of June 30, 2016, Track Group had $51.6 million in total assets, $41.5 million in total liabilities and $10.2 million in total equity. As of June 30, 2016, the Company had unrestricted cash of $2.01 million and a working capital surplus of $3.63 million, compared to unrestricted cash of $4.90 million and a working capital surplus of $7.40 million as of Sept. 30, 2015. A full-text copy of the Form 10-Q is available for free at: https://is.gd/kXgDxG About Track Group Track Group (formerly SecureAlert) -- http://www.trackgrp.com/-- is a global provider of customizable tracking solutions that leverage real-time tracking data, best-practice monitoring, and analytics capabilities to create complete, end-to-end solutions. Track Group reported a net loss attributable to common shareholders of $5.66 million on $20.8 million of total revenues for the fiscal year ended Sept. 30, 2015, compared with a net loss attributable to common shareholders of $8.76 million on $12.26 million of total revenues for the fiscal year ended Sept. 30, 2014. TRAVELPORT WORLDWIDE: May Issue 8.9M Shares Under Incentive Plan ---------------------------------------------------------------- Travelport Worldwide Limited filed with the Securities and Exchange Commission a Form S-8 registration statement to register 8,900,000 common shares of the Company issuable under the Amended and Restated 2014 Omnibus Incentive Plan. The proposed maximum aggregate offering price is $115 million. A full-text copy of the prospectus is available at https://is.gd/sN5ZVq About Travelport Worldwide Travelport Worldwide Limited is a travel commerce platform providing distribution, technology, payment and other solutions for the global travel and tourism industry. As of June 30, 2016, Travelport had $2.90 billion in total assets, $3.22 billion in total liabilities, and a total deficit of $324 million. * * * As reported by the TCR on March 8, 2016, Standard & Poor's Ratings Services raised to 'B+' from 'B' its long-term corporate credit rating on U.K.-based travel services provider Travelport Worldwide Ltd. The outlook is stable. TRINITY 83: Wants to Use Colfin's Cash Collateral ------------------------------------------------- Trinity 83 Development, LLC, asks the U.S. Bankruptcy Court for the Northern District of Illinois for authorization to use cash collateral. The Debtor relates that its cash collateral consists of cash proceeds from its rents, accounts receivable and other cash equivalents in which Colfin Midwest Funding LLC asserts an interest. The Debtor contends that Colfin has an alleged mortgage and assignment of rents on the Debtor's real property commonly known as 19100 S. Crescent Drive, Mokena, IL. The Debtor further contends that the mortgage and assignment of rents allegedly created a security interest in the Debtor's real property as well as the Debtor's cash and non-cash collateral. The Debtor wants to use Colfin's cash collateral, as well as equipment and other non-cash collateral in which Colfin also asserts an interest. The Debtor's proposed monthly budget provides for total expenses in the amount of $5,638. The Debtor tells the Court that it is critical for the Debtor to use the cash and non-cash collateral to sustain sufficient working capital to: (i) finance its ongoing post-petition operations until it confirms a plan or reorganization or consummates a sale of its assets; and (ii) conduct its operations. The Debtor proposes to grant Colfin replacement liens to the same extent that may have existed prior to the Petition Date. The Debtor also proposes to make monthly adequate protection payments to Colfin in the amount of $13,003. A full-text copy of the Debtor's Motion, dated Aug. 3, 2016, is available at https://is.gd/UaPwhZ A full-text copy of the Debtor's proposed Budget, dated Aug. 3, 2016, is available at https://is.gd/BKpHbS About Trinity 83 Development LLC. Trinity 83 Development LLC filed a chapter 11 petition (Bankr. N.S. Ill. Case No. 16-24652) on Aug. 1, 2016. The petition was signed by Donald L. Santacarina, member. The Debtor is represented by Gina B. Krol, Esq., at Cohen & Krol. The case is assigned to Judge Deborah L. Thorne. The Debtor disclosed total assets at $2.41 million and total debts at $2.13 million at the time of the filing. TXU CORP: 2014 Bank Debt Trades at 67% Off ------------------------------------------ Participations in a syndicated loan under TXU Corp is a borrower traded in the secondary market at 32.81 cents-on-the-dollar during the week ended Friday, July 29, 2016, according to data compiled by LSTA/Thomson Reuters MTM Pricing. This represents a decrease of 1.13 percentage points from the previous week. TXU Corp pays 350 basis points above LIBOR to borrow under the $3.45 billion facility. The bank loan matures on Oct. 10, 2014 and carries Moody's WR rating and Standard & Poor's NR rating. The loan is one of the biggest gainers and losers among 247 widely quoted syndicated loans with five or more bids in secondary trading for the week ended July 29. TXU CORP: 2017 Bank Debt Trades at 67% Off ------------------------------------------ Participations in a syndicated loan under TXU Corp is a borrower traded in the secondary market at 33.25 cents-on-the-dollar during the week ended Friday, July 29, 2016, according to data compiled by LSTA/Thomson Reuters MTM Pricing. This represents a decrease of 1.90 percentage points from the previous week. TXU Corp pays 450 basis points above LIBOR to borrow under the $15.367 billion facility. The bank loan matures on Oct. 10, 2017 and carries Moody's WR rating and Standard & Poor's NR rating. The loan is one of the biggest gainers and losers among 247 widely quoted syndicated loans with five or more bids in secondary trading for the week ended July 29. U.S. STEEL: Comments on Essar-Led Consortium Communication ---------------------------------------------------------- U. S. Steel Canada Inc. became aware on Aug. 9, 2016, of an unsolicited, purported offer for U. S. Steel Canada by Ontario Steel Investments Limited, a consortium led by Essar Global Fund Limited ("Essar"). Earlier this summer, Essar was eliminated from the Company's Sale and Investment Solicitation Process ("SISP"), following the receipt of a proposal and detailed discussions between Essar, the Company and other stakeholders, including the Province of Ontario. The Unions and representatives for both active and retired employees and Essar were made aware of the reasons for Essar's elimination from the process at that time. The Company is not considering any further proposals from Essar. Among other reasons, Essar was eliminated from the SISP due to its: -- Failure to provide satisfactory evidence of its financial ability to own and operate the Company – As part of the SISP, Essar was asked to provide evidence of its ability to meet financial obligations associated with its bid and failed to satisfy the Company and the Monitor of its ability to do so. In addition, among other things, other affiliated entities of Essar continue to experience difficulties. On March 31, 2016, the second largest credit rating agency in India, gave Essar Steel India Ltd. a rating assigned to instruments in default or expected to be in default soon. Essar's Canadian steel asset, Essar Steel Algoma, is currently under a court-supervised restructuring and Essar was eliminated from the sales process in that restructuring. Essar Steel Minnesota failed to satisfy certain requirements of the State of Minnesota and filed for Chapter 11 bankruptcy protection on July 8, 2016. -- Inability to gain the support of all stakeholders – Essar requested certain relief and accommodations from the Province of Ontario. The Province conveyed to U. S. Steel Canada and Essar that it was not prepared to accommodate Essar's requests or to participate in further negotiations with Essar. The Aug. 9 communication from Essar's consortium includes terms that are substantially similar to what was previously rejected by the Company and the Province. U. S. Steel Canada will avoid any distraction that could be detrimental to the Company, its employees and pensioners, at a time when the restructuring process is progressing, and negotiations with the current bidders continue. U.S. Steel Canada will provide further updates as developments warrant. About U.S. Steel Canada, Inc. U.S. Steel Canada's operations are located at Lake Erie Works, a fully integrated steelmaking facility, and at Hamilton Works, home to cokemaking and finishing operations including its zinc-coating facility, Z-Line. U.S. Steel Canada has the capability of producing approximately 2.6 million tons of steel annually and employs approximately 2,000 people. U.S. Steel Canada commenced court-supervised restructuring proceedings under the Companies' Creditors Arrangement Act, R.S.C. 1985, c. C-36, before the Ontario Superior Court of Justice (Commercial List) on Sept. 16, 2014. Ernst & Young Inc. has been appointed by the CCAA court as monitor pursuant to an Initial CCAA Order. UCI INTERNATIONAL: Taps Ernst & Young as Tax Advisor ---------------------------------------------------- UCI International, LLC, et al., seek authority from the U.S. Bankruptcy Court for the District of Delaware to employ Ernst & Young LLP as tax advisors to the Debtors. UCI International requires Ernst & Young to: A. Bankruptcy Tax Services -- advise the Debtors' personnel in developing an understanding of the tax issues and options related to the Debtors' chapter 11 filing, taking into account the Debtors' specific facts and circumstances, for US federal and state & local tax purposes; -- advise on the federal, state and local income tax consequences of proposed plans of reorganization, including, if necessary, assisting in the preparation of IRS ruling requests regarding the tax consequences of alternative reorganization structures and tax opinions; -- understand and advise on the tax implication of reorganization and/or restructuring alternatives the Debtors are evaluating with existing bondholders and other creditors that may result in a change in the equity, capitalization and/or ownership of the shares of the Debtors and their assets; -- gather information, prepare calculations ("Section 382 Calculations") and apply the appropriate federal and state & local tax law to historic information regarding changes in the ownership of the Debtors' stock to calculate whether any of the shifts in stock ownership may have caused an ownership change that will restrict the use of tax attributes (such as net operating loss, capital loss, credit carry forwards, and built in losses) and the amount of any such limitation; -- prepare calculations and apply the appropriate federal and state & local tax law to determine the amount of tax attribute reduction related to debt cancellation income and modeling of tax consequences of such reduction; -- provide training, education and insight surrounding ASC 740 and Fresh Start accounting; -- update the draft tax basis balance sheets and draft computations of stock basis as of certain relevant dates for purposes of analyzing the tax consequences of alternative reorganization structures; -- analyze federal, state and local tax treatment of the costs and fees incurred by the Debtors in connection with the bankruptcy proceedings, including tax return disclosure and presentation; -- analyze federal and state and local tax treatment of interest and financing costs related to debt subject to automatic stay, and new debt incurred as the Debtors emerge from bankruptcy, including tax return disclosure and presentation; -- provide tax advisory services regarding tax aspects of the bankruptcy process; -- analyze federal, state and local tax consequences of restructuring and rationalization of inter-company accounts, and upon written request, we will analyze impacts of transfer pricing and related cash management; -- analyze federal, state and local tax consequences of restructuring in the U.S. or internationally during bankruptcy, including tax return disclosure and presentation; -- analyze federal, state and local tax consequences of potential bad debt and worthless stock deductions, including tax return disclosure and presentation; -- upon written request, analyze federal, state and local tax consequences of employee benefit plans; -- upon written request, assist with various tax, compliance and audit issues arising in the ordinary course of business while in bankruptcy, including but not limited to: IRS and/or state and local tax examinations, sales and use tax issues, state & local income/franchise tax issues, property tax issues, employment tax issues and unclaimed property issues; -- advise and/or assist, as requested and as permissible, with determining the validity and amount of bankruptcy tax claims or assessments, including but not limited to the following types of taxes; income taxes, franchise taxes, sales taxes, use taxes, employment taxes, property taxes, severance taxes, excise taxes, unclaimed property and other miscellaneous taxes or regulatory assessments and fees; -- upon written request, assist and advise on securing tax refunds, including but not limited to the following types of taxes; income taxes, franchise taxes, sales taxes, use taxes, employment taxes and property taxes. -- upon written request, provide documentation, as appropriate or necessary, of tax matters, of tax analysis, opinions, recommendations, conclusions and correspondence for any proposed restructuring alternative, bankruptcy tax issue, or other tax matter described. The Debtors will be responsible for all accounting and management decisions. B. Routine On-Call Tax Advice -- provide routine tax advice and assistance concerning issues as requested by the Debtors when such projects are not covered by a separate statement of work and do not involve any significant tax planning or projects. This statement of work is intended to be used for engagements to respond to general tax questions and assignments that are expected, at the beginning of the project, to involve total professional time not to exceed (with respect to the specific project) $25,000 in professional fees at the standard hourly rates for the professionals involved. Ernst & Young will be paid at these hourly rates: Rate Per Hour Title Local National Partner/Principal/Executive Director $890 $950 Senior Manager $750 $850 Manager $640 $730 Senior $460 $520 Staff $260 $300 Ernst & Young will also be reimbursed for reasonable out-of-pocket expenses incurred. Gregory H. Greenwood, partner of Ernst & Young 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. Ernst & Young can be reached at: Gregory H. Greenwood ERNST & YOUNG LLP 400 West Market St., Suite 2400 Louisville, KY 40202 Tel: (502) 585-1400 About UCI International UCI International, LLC, headquartered in Lake Forest, IL, designs, manufactures, and distributes vehicle replacement parts, including a broad range of filtration, fuel delivery systems, and cooling systems products in the automotive, trucking, marine, mining, construction, agricultural, and industrial vehicles markets. UCI and its affiliates sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 16-11355) on June 1, 2016. The Debtors are represented by lawyers at Sidley Austin LLP. Alvarez & Marsal provides the company with financial advice and Moelis & Company LLC is the Debtors' investment banker. Garden City Group serves as the Debtors' Claims Agent. Wilmington Trust is the Indenture Trustee for a $400-million issue of 8.625% Senior Notes Due 2019. The United States Trustee appointed an Official Committee of Unsecured Creditors, which has retained Morrison & Foerster LLP as proposed counsel, and Cole Schotz PC as Delaware co-counsel. Zolfo Cooper LLC has been retained as bankruptcy consultant and financial advisor for the Committee. VALEANT PHARMACEUTICAL: Amendment No Impact on Moody's B2 CFR ------------------------------------------------------------- Moody's Investors Service commented that a proposed amendment to Valeant Pharmaceutical International Inc.'s credit agreement will improve its liquidity position due to increased cushion under financial maintenance covenants. There is no impact on Valeant's ratings including the B2 Corporate Family Rating or the negative rating outlook. Headquartered in Laval, Quebec, Valeant Pharmaceuticals International, Inc. is a global specialty pharmaceutical company with expertise including branded dermatology, gastrointestinal disorders, eye health, neurology, branded generics and OTC products. Valeant reported approximately $10.3 billion in total revenue for the 12 months ended June 30, 2016. VALEANT PHARMACEUTICALS: Incurs $302-Mil. Net Loss in 2nd Quarter ----------------------------------------------------------------- Valeant Pharmaceuticals International, Inc., filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss attributable to the Company of $302 million on $2.42 billion of revenues for the three months ended June 30, 2016, compared to a net loss attributable to the Company of $53 million on $2.73 billion of revenues for the three months ended June 30, 2015. For the six months ended June 30, 2016, the Company reported a net loss attributable to the Company of $676 million on $4.79 billion of revenues compared to net income attributable to the Company of $44.7 million on $4.90 billion of revenues for the same period last year. As of June 30, 2016, Valeant had $47.7 billion in total assets, $42.3 billion in total liabilities and $5.40 billion in total equity. "We continue to make progress towards stabilizing the organization," said Joseph C. Papa, chairman and chief executive officer. We are also announcing a new strategic direction for Valeant today, which, at its heart has a mission to improve patients' lives, and will involve reorganizing our company and reporting segments. I am continuously encouraged by the commitment of our employees who work hard daily, rebuilding our relationships with prescribers, patients and payors, and regaining the trust of our debt holders and shareholders. Although it will take time to implement and execute our turnaround plan, I am confident that we will show progress in the coming quarters." The Company is reconfirming its full year 2016 guidance. Total revenue is expected to be in the range of $9.9 - $10.1 billion. Adjusted EPS (non-GAAP) is expected to be in the range of $6.60 - $7.00. Adjusted EBITDA (non-GAAP) is expected to be in the range of $4.80 - $4.95 billion. A full-text copy of the Form 10-Q is available for free at: https://is.gd/QHLvEJ About Valeant Valeant Pharmaceuticals International, Inc. (NYSE/TSX:VRX) -- http://www.valeant.com/-- is a multinational specialty pharmaceutical company that develops, manufactures and markets a broad range of pharmaceutical products primarily in the areas of dermatology, gastrointestinal disorder, eye health, neurology and branded generics. Valeant reported a net loss attributable to the Company of $291.7 million on $10.44 billion of revenues for the year ended Dec. 31, 2015, compared to net income attributable to the Company of $880.7 million on $8.20 billion of revenues for the year ended Dec. 31, 2014. * * * Valeant carries a 'B2' Corporate Family Rating from Moody's Investors Service. As reported by the TCR on April 19, 2016, Standard & Poor's Ratings Services said that it has lowered its corporate credit ratings on Valeant Pharmaceuticals International Inc. to 'B' from 'B+' and placed both the corporate credit rating and the issue-level ratings on CreditWatch with developing implications. VYCOR MEDICAL: Fountainhead Owns 69.68% of Series D Shares ---------------------------------------------------------- In an amended Schedule 13D filed with the Securities and Exchange Commission, Fountainhead Capital Management Limited disclosed that as of Aug. 5, 2016, it beneficially owned 188,363 shares of 7% Series D Convertbile Redeemable Preferred Stock, par value $0.0001, of Vycor Medical representing 69.68 percent of the shares outstanding. On Aug. 5, 2016, Fountainhead Capital Management Limited received an additional 6,369 shares of Series D as a dividend on its prior holdings of Series D. Fountainhead has previously reported ownership of 6,464,484 shares of Company Common Stock par value $0.0001, comprising ownership of 4,449,997 Common Shares and Warrants to purchase an aggregate of 2,047,821 Common Shares and 181,994 shares of Series D. A full-text copy of the regulatory filing is available at: https://is.gd/vitbgT About Vycor Medical Boca Raton, Fla.-based Vycor Medical, Inc. (OTC BB: VYCO) -- http://www.VycorMedical.com/-- is a medical device company committed to making neurological brain, spinal and other surgical procedures safer and more effective. The Company's flagship, Patent Pending ViewSite(TM) Surgical Access Systems represent an exciting new minimally invasive access and retraction system that holds the potential for speedier, safer and more economical brain, spinal and other surgeries and a quicker patient discharge. Vycor's innovative medical instruments are designed to optimize neurosurgical site access, reduce patient risk, accelerate recovery, and add tangible value to the professional medical community. Vycor Medical reported a net loss available to common shareholders of $2.25 million on $1.13 million of revenue for the year ended Dec. 31, 2015, compared to a net loss available to common shareholders of $4.04 million on $1.25 million of revenue for the year ended Dec. 31, 2014. As of June 30, 2016, Vycor had $1.68 million in total assets, $1.02 million in total liabilities and $657,827 in total stockholders' equity. The Company's auditors Paritz & Company, P.A., in Hackensack, New Jersey, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2015. VYCOR MEDICAL: Incurs $305,000 Net Loss in Second Quarter --------------------------------------------------------- Vycor Medical, Inc., filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $305,363 on $379,406 of revenue for the three months ended June 30, 2016, compared to a net loss of $420,267 on $286,018 of revenue for the three months ended June 30, 2015. For the six months ended June 30, 2016, the Company reported a net loss of $832,923 on $779,492 of revenue compared to a net loss of $1.14 million on $614,570 of revenue for the same period last year. As of June 30, 2016, Vycor had $1.68 million in total assets, $1.02 million in total liabilities and $657,827 in total stockholders' equity. "Vycor's results for the second quarter of 2016 continue to demonstrate the realization of Vycor's strategy to grow our two businesses while maintaining our low cost base, with the objective of continuing to decrease our Cash Burn, which reduced from $197,000 for the first quarter of 2016 to $132,000 for the second quarter of 2016, as compared to $321,000 in the second quarter of 2015," said Peter Zachariou, CEO of Vycor Medical. "The Vycor division's sales growth of 51% in the second quarter and 42% for the year to date demonstrates the benefit of the clinical data flowing through to increased adoption, delivered by a marketing and distribution network which we continue to strengthen. "With the company's limited resources we are focusing NovaVision on direct-to-patient website and social media marketing. It takes an average of 10 weeks from contact to signing up a patient, and revenues are recognized over the six-month therapy period, so the revenue benefits of the new model take time to build. The increase in new patient starts of 64% in the US and 41% in Europe in the second quarter over 2015 is lower than had been anticipated and as result NovaVision continues to account for a large portion of the Company's cash burn." A full-text copy of the Form 10-Q is available for free at: https://is.gd/gdL9If About Vycor Medical Boca Raton, Fla.-based Vycor Medical, Inc. (OTC BB: VYCO) -- http://www.VycorMedical.com/-- is a medical device company committed to making neurological brain, spinal and other surgical procedures safer and more effective. The Company's flagship, Patent Pending ViewSite(TM) Surgical Access Systems represent an exciting new minimally invasive access and retraction system that holds the potential for speedier, safer and more economical brain, spinal and other surgeries and a quicker patient discharge. Vycor's innovative medical instruments are designed to optimize neurosurgical site access, reduce patient risk, accelerate recovery, and add tangible value to the professional medical community. Vycor Medical reported a net loss available to common shareholders of $2.25 million on $1.13 million of revenue for the year ended Dec. 31, 2015, compared to a net loss available to common shareholders of $4.04 million on $1.25 million of revenue for the year ended Dec. 31, 2014. The Company's auditors Paritz & Company, P.A., in Hackensack, New Jersey, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2015. VYCOR MEDICAL: Peter C. Zachariou Holds 25.7% of Series D Shares ---------------------------------------------------------------- In an amended Schedule 13D filed with the Securities and Exchange Commission, Peter C. Zachariou disclosed that as of Aug. 5, 2016, he beneficially owned 69,487 shares of 7% Series D Convertible Redeemable Preferred Stock Par Value $0.0001 of Vycor Medical representing 25.7 percent of the shares outstanding. The Reporting Person received 2,349 shares of Company 7% Series D Convertible Redeemable Preferred Stock par value $0.0001 as a result of a stock dividend on the shares of Company Series D held by it. A full-text copy of the regulatory filing is avaialble for free at https://is.gd/JLZGpC About Vycor Medical Boca Raton, Fla.-based Vycor Medical, Inc. (OTC BB: VYCO) -- http://www.VycorMedical.com/-- is a medical device company committed to making neurological brain, spinal and other surgical procedures safer and more effective. The Company's flagship, Patent Pending ViewSite(TM) Surgical Access Systems represent an exciting new minimally invasive access and retraction system that holds the potential for speedier, safer and more economical brain, spinal and other surgeries and a quicker patient discharge. Vycor's innovative medical instruments are designed to optimize neurosurgical site access, reduce patient risk, accelerate recovery, and add tangible value to the professional medical community. Vycor Medical reported a net loss available to common shareholders of $2.25 million on $1.13 million of revenue for the year ended Dec. 31, 2015, compared to a net loss available to common shareholders of $4.04 million on $1.25 million of revenue for the year ended Dec. 31, 2014. As of June 30, 2016, Vycor had $1.68 million in total assets, $1.02 million in total liabilities and $657,827 in total stockholders' equity. The Company's auditors Paritz & Company, P.A., in Hackensack, New Jersey, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2015. WAFERGEN BIO-SYSTEMS: Reports Results for Second Quarter 2016 ------------------------------------------------------------- WaferGen Bio-systems reported a net loss of $4.88 million on $2.51 million of total revenue for the three months ended June 30, 2016, compared to a net loss of $3.82 million on $1.61 million of total revenue for the three months ended June 30, 2015. For the six months ended June 30, 2016, the Company reported a net loss of $9.29 million on $4.44 million of total revenue compared to a net loss of $8.62 million on $2.75 million of total revenue for the six months ended June 30, 2015. As of June 30, 2016, the Company had $15.03 million in total assets, $7.92 million in total liabilities and $7.11 million in total stockholders' equity. "The second quarter set another new record for WaferGen," said Rollie Carlson, Ph.D., president and chief executive officer of WaferGen. "Our revenue of $2.5 million surpassing the $2.4 million we achieved in the fourth quarter of 2015. We have placed eight ICELL8 Single-Cell Systems since our initial launch in October of 2015, and are pleased with our sales outlook. Based on the feedback we are receiving from potential customers, leading biopharmaceutical companies and academic institutions, the demand for our ICELL8 Single-Cell System remains strong, although the sales cycle is longer than we originally envisaged. Based on all of this, as well as the continued strong performance from our base business, we are revising our full-year 2016 revenues from $12 million to $13 million to now be in the range of $10 million to $12 million." At June 30, 2016, WaferGen had cash and cash equivalents of approximately $7.4 million. A full-text copy of the press release is available for free at: https://is.gd/PLzPGZ About WaferGen Bio-systems Fremont, California-based WaferGen Bio-systems, Inc., engages in the development of systems for gene expression quantification, genotyping and stem cell research. Since 2008, the Company's primary focus has been on the development, manufacture and marketing of its SmartChip System, a genetic analysis platform used for profiling and validating molecular biomarkers in the life sciences and pharmaceutical drug discovery industries. WaferGen reported a net loss attributable to common stockholders of $19.99 million on $7.16 million of total revenue for the year ended Dec. 31, 2015, compared to a net loss attributable to common stockholders of $10.7 million on $6 million of total revenue for the year ended Dec. 31, 2014. WALL STREET SYSTEMS: Moody's Assigns B2 Corp. Family Rating ----------------------------------------------------------- Moody's Investors Service assigned new debt ratings for Wall Street Systems Delaware, Inc. ("WSS") with a Corporate Family Rating ("CFR") of B2 and a Probability of Default Rating ("PDR") of B2-PD. Additionally, Moody's assigned a B2 to WSS' senior secured first lien credit facilities which the company has proposed to upsize with a concurrent extension of maturities. The ratings outlook is negative. The rating action follows WSS' announcement of plans to amend its credit facilities, raising incremental first lien debt of approximately $165 million to fund a dividend to shareholders and the proposed acquisition of a small software provider. In addition to the increase of the company's term loan to $500 million, WSS' undrawn revolver is expected to be enlarged to $30 million. The negative outlook reflects weakened credit protection measures resulting from WSS' resumption of more aggressive financial policies, recent softness in the company's operating trends, and the potential for further pursuit of acquisitions or shareholder enhancement initiatives going forward. Moody's assigned the following ratings: -- Corporate Family Rating -- B2 -- Probability of Default Rating -- B2-PD -- Senior Secured Revolving Credit Facility expiring 2021, B2 (LGD3) -- Senior Secured First Lien Term Loan due 2023, B2 (LGD3) -- Outlook is Negative RATINGS RATIONALE The B2 CFR reflects WSS' high pro forma debt leverage of approximately 5.3x trailing 12 month adjusted EBITDA as well as the company's relatively small scale as a niche provider of software and services for foreign exchange processing as well as treasury and risk management applications. The company's credit profile is also negatively impacted by recent weakness in WSS' business performance as sales have contracted meaningfully over the past two years and Moody's believes that the software provider's organic revenue growth prospects will be modest over the intermediate term due to the maturity of its target markets. The company's efforts to bolster growth by pursuing additional acquisitions could constrain deleveraging efforts. However, these risks are partially mitigated by WSS' solid market position with its niche serving over 750 of the world's largest corporations, financial institutions, and central banks. Additionally, the company's subscription-based sales model provides a degree of top-line visibility given a significant proportion of recurring revenue and minimal client attrition, supporting WSS' healthy free cash flow production. WSS' good liquidity position is supported by $38 million in pro forma cash on the company's balance sheet and Moody's expectation that WSS' will generate free cash flow exceeding 12% of debt on an annual basis over the intermediate term. The company's liquidity is also bolstered by an undrawn $30 million revolving credit facility. While the company's term loans are not subject to financial covenants, the revolving credit facility has a springing covenant which is not expected to be in effect over the next 12-18 months. The negative outlook reflects Moody's expectation that WSS will be challenged to resume organic growth over the next 12-18 months, with particular weakness stemming from the company's suite of products targeting the foreign exchange processing market. Based on these growth prospects, Moody's does not expect meaningful declines in debt/EBITDA during this period while the company's efforts to expand by pursuing additional acquisitions could constrain deleveraging efforts. What Could Change the Rating -- Up The ratings could be upgraded if WSS is able to generate moderate organic revenue while the company uses free cash flow to reduce debt/EBITDA (Moody's adjusted) below 4x and refrains from equity distributions. What Could Change the Rating -- Down The ratings could be downgraded if WSS experiences a meaningful contraction in sales and FCF generation while debt/EBITDA (Moody's adjusted) is sustained above 5.5x. The principal methodology used in these ratings was Software Industry published in December 2015. WSS is a provider of treasury management, central banking, and foreign exchange processing software and services and is owned by ION Investment Group ("ION"). WANK ADAMS: Hires Lewis Brisbois as Special Litigation Counsel -------------------------------------------------------------- Wank Adams Slavin Associates LLP, seeks authority from the U.S. Bankruptcy Court for the Southern District of New York to employ Lewis Brisbois Bisgaard & Smith LLP as special litigation counsel to the Debtor, nunc pro tunc to March 1, 2016. On May 7, 2015, prior to the Petition Date, XIN Development Management East, LLC, commenced an arbitration proceeding against the Debtor by filing a demand for arbitration with the American Arbitration Association (Case No. 01-15-0003-4678). In the Arbitration, XIN asserted a $10 million claim for professional malpractice against the Debtor in connection with architectural and engineering services rendered by the Debtor pursuant to the Standard Form of Agreement between XIN, as Owner, and the Debtor, as Architect, dated February 2013, for the development of a residential condominium building located at 421 Kent Avenue, Brooklyn, NY. Shortly thereafter, the Debtor filed a response in the Arbitration in which it asserted counterclaims against XIN for breach of contract, tortious interference with contract, and misappropriation and conversion of proprietary information. The Debtor is seeking damages of approximately $8.56 million, which include the approximately $1.58 million due from XIN for services rendered. Wank Adams requires Lewis Brisbois to prosecute the counterclaims at the XIN Arbitration, and to represent the Debtor in the defense of the malpractice claim. Lewis Brisbois will be paid at these hourly rates: Partners $240 Associates $190 Paralegals $95 Law Clerks $110 Harry Spring, the Debtor's sole remaining partner, has agreed to pay Lewis Brisbois a $15,000 retainer and to be personally responsible for payment of Lewis Brisbois's fees and expenses, including the payment of experts, if any. Lewis Brisbois will also be reimbursed for reasonable out-of-pocket expenses incurred. To the best of the Debtor's 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. Lewis Brisbois can be reached at: David M. Pollack, Esq. LEWIS BRISBOIS BISGAARD & SMITH LLP 77 Water Street, suite 2100 New York, NY 10005 Tel: (212) 232-1300 Fax: (212) 232-1399 E-mail: DAVID.POLLACK@LEWISBRISBOIS.COM About Wank Adams Wank Adams Slavin Associates LLP filed a Chapter 11 petition (Bankr. S.D.N.Y. Case No. 15-11952) on July 27, 2015. The petition was signed by Harry Spring, senior managing partner. The Debtor is represented by Nancy L. Kourland, Esq., at Rosen & Associates, P.C. WAVE SYSTEMS: Hires Baker & Hostetler as Corporate Counsel ---------------------------------------------------------- Wave Systems Corp., seeks authority from the U.S. Bankruptcy Court for the District of Delaware to employ Baker & Hostetler LLP as corporate and securities counsel to the Debtor, nunc pro tunc to June 21, 2016. Wave Systems requires Baker & Hostetler to: (a) assist the Chapter 11 Trustee with all securities law issues that may arise in the context of the Chapter 11 Trustee's duties; (b) assist the Chapter 11 Trustee in administering this chapter 11 case; (c) prepare on behalf of the Debtor's estate all necessary motions, applications, answers, orders, reports, and papers in connection with the administration and reorganization in respect of securities law matters; and (d) perform all other necessary legal services in respect of above in connection with this chapter 11 case. Baker & Hostetler will be paid at these hourly rates: Donald A. Workman, Attorney $895 William J. Conti, Attorney $895 Janis M. Penman, Attorney $700 Baker & Hostetler will also be reimbursed for reasonable out-of-pocket expenses incurred. Donald A. Workman, partner of the law firm Baker & Hostetler 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. Baker & Hostetler can be reached at: Donald A. Workman, Esq. BAKER & HOSTETLER LLP 1050 Connecticut Avenue, N.W., Suite 110 Washington, DC 20036 Tel: (202) 861-1500 Fax: (202) 861-1783 About Wave Systems Lee, Massachusetts-based Wave Systems Corp. (NASDAQ: WAVX) --http://www.wave.com/--develops, produces and markets products for hardware-based digital security, including security applications and services that are complementary to and work with the specifications of the Trusted Computing Group, an industry standards organization comprised of computer and device manufacturers, software vendors and other computing products manufacturers. Wave Systems filed a Chapter 7 bankruptcy petition (Bankr. D. Del. Case No. 16-10284) on Feb. 1, 2016. On May 16, 2016, the case was converted to a Chapter 11 proceeding. The case is assigned to Judge Kevin J. Carey. David W. Carickhoff, was appointed as Chapter 11 trustee. Mr. Carickhoff tapped Archer & Greiner P.C. as counsel. The Trustee also tapped Miller & Company, LLC as accountants and financial advisors, and UpShot Services LLC as the claims agent and administrative agent. WHITING PETROLEUM: To Swap Senior Notes for Common Shares --------------------------------------------------------- Whiting Petroleum Corporation entered into separate privately negotiated exchange agreements under which it will exchange, in private placements in reliance on Section 4(a)(2) of the Securities Act of 1933, as amended, (i) $12.866 million aggregate principal amount of its 6.5% Mandatory Convertible Senior Subordinated Notes due 2018, which were convertible into 1.470 million shares of the Company's common stock, for 1.656 million shares of Common Stock and (ii) $25.430 million aggregate principal amount of its 5.0% Mandatory Convertible Senior Notes due 2019, which were convertible into 2.893 million shares of Common Stock, for 3.259 million shares of Common Stock. The Company expects that the exchange transactions will close on Aug. 12, 2016, subject to customary closing conditions. About Whiting Petroleum Whiting Petroleum Corporation is an independent oil and gas company engaged in development, production, acquisition and exploration activities primarily in the Rocky Mountains and Permian Basin regions of the United States. Whiting Petroleum reported a net loss available to common shareholders of $2.21 billion on $2.05 billion of total revenues and other income for the year ended Dec. 31, 2015, compared to net income available to common shareholders of $64.80 million on $3.08 billion of total revenues and other income for the year ended Dec. 31, 2014. WILLARD BLANKENSHIP: Kletchko, Unsecured Claims to Get $286,000 --------------------------------------------------------------- Willard J. Blankenship filed with the U.S. Bankruptcy Court for the Eastern District of California a redlined copy of the Disclosure Statement to his First Amended Plan of Reorganization. The revised Disclosure Statement provides that: -- the amount of other administrative expenses is $821.73, instead of $6,151.613; -- for the Class 2 Michael Kletchko and Patrick Ruedin Claims, and Class 3 General Unsecured Claims, $168,635 will be distributed in October 2017, while $117,500 will be distributed upon the sale of the Spencer Indiana farm and Apnea Associates stock, no later than October 2017. As reported by the Troubled Company Reporter on Aug. 9, 2016, the Debtor filed with the Court its latest disclosure statement detailing his proposed Chapter 11 plan of reorganization. Under the plan, general unsecured creditors in Class 3 will receive a dividend of approximately 34.6% of their claims. The Debtor will retain the property of the estate and obtain a reverse mortgage which will provide proceeds at least equal to what creditors would receive in a hypothetical Chapter 7 case. The distribution to Classes 2 and 3 will be in three steps: 1. When the reverse mortgage is funded which is estimated to be June 2016 the Debtor will distribute funds which are immediately available. These funds are estimated to be in the approximate amount of $132,567. These funds will be distributed exclusively to Kletchko and Ruedin less priority claims. 2. Twelve months later when the line of credit secured by the reverse mortgage is available a distribution in the amount of $168,635, and 3. Finally when the Apnea Analysis stock which is estimated to be worth $5,000 and the Spencer Indiana farm is sold which is projected to net $112,500, to be realized no later than the second distribution. The Court will retain jurisdiction for approval of a sale of the Spencer Indiana farm and Apnea Associates stock, to be realized no later than the second distribution A copy of the redlined Disclosure Statement is available at: http://bankrupt.com/misc/caeb15-28108-126.pdf About Willard Blankenship Willard J. Blankenship filed a Chapter 11 petition (Bankr. E.D. Cal. Case No. 15-28108) on October 17, 2015, and is represented by: Stephen M. Reynolds, Esq. Reynolds Law Corporation 424 Second Street, Ste. A Davis, CA 95616 Tel: 530 297 5030 Fax: 530 297 5077 E-mail: sreynolds@lr-law.net WINDMILL RUN: Hires Holthouse Carlin as Tax Advisor --------------------------------------------------- Windmill Run Associates, Ltd., seeks authority from the U.S. Bankruptcy Court for the Southern District of Texas to employ Holthouse Carlin & Van Trigt LLP as tax advisor to the Debtor. Windmill Run requires Holthouse Carlin to: a. prepare the federal income tax returns; and b. prepare the state income tax returns. Holthouse Carlin will be paid at these hourly rates: Staff $150-$190 Senior $200-$250 Manager $260-$320 Senior Manager $330-$370 Principal $380-$440 Partner $450-$680 Holthouse Carlin will also be reimbursed for reasonable out-of-pocket expenses incurred. Jonathan Siao, principal of Holthouse Carlin & Van Trigt 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. Holthouse Carlin can be reached at: Jonathan Siao HOLTHOUSE CARLIN & VAN TRIGT LLP 15760 Ventura Blvd., Suite 1700 Encino, CA 91436 Tel: (818) 849-3145 About Windmill Run Windmill Run Associates, Ltd., based in Sweeny, TX, filed a Chapter 11 petition (Bankr. S.D. Tex. Case No. 15-80319) on August 29, 2015. The Hon. Letitia Z. Paul presides over the case. Edward L Rothberg, Esq., at Hoover Slovacek, LLP, serves as bankruptcy counsel. In its petition, the Debtor estimated $1 million to $10 million in assets and $1 million to $10 million in liabilities. The petition was signed by Frank Fonseca, president, operating G.P., Windmill Run Development, Inc. WSB & ASSOCIATES: Unsecured Creditors to Recoup 1% of Claims ------------------------------------------------------------ WSB & Associates, Inc., filed with the U.S. Bankruptcy Court for the Northern District of California a combined plan of reorganization and disclosure statement dated July 25, 2016. Under the Plan, general unsecured creditors will get a pro-rata portion of 1% of their allowed claims in lump sum payment. General Unsecured Creditors (Small Claims) in Class 2(a) includes any creditor whose allowed claim is $60,000 or less. Each creditor will receive on the Effective Date of the Plan a single payment equal to 1% of its allowed claim. Creditors in this class may not take any collection action against the Debtor so long as the Debtor is not in material default under the Plan. Claimants in this class are impaired and are entitled to vote on confirmation of the Plan, unless their claims are paid in full with interest on the Effective Date of the Plan. Other General Unsecured Claims in Class 2(b) -- not treated as small claims and including allowed claims of creditors whose executory contracts or unexpired leases are being rejected under the Plan -- will receive 1% of their allowed claim in 60 equal monthly installments, due on the 25th day of the month, starting Oct. 25, 2016. Creditors in this class may not take any collection action against the Debtor so long as the Debtor is not in material default under the Plan. This class is impaired and is entitled to vote on confirmation of the Plan. The Disclosure Statement is available at: http://bankrupt.com/misc/canb15-43859-30.pdf The Plan was filed by the Debtor's counsel: Eduardo A. Gonzalez, Esq., Law Offices of Robert Goldstein 100 Bush Street No. 501 San Francisco, CA 94104 Tel: (415) 391-8700 WSB & Associates, Inc., filed for Chapter 11 bankruptcy protection (Bankr. N.D. Calif. Case No. 15-43859). Eduardo A. Gonzalez, Esq., at the Law Offices of Robert Goldstein serves as the Debtor's counsel. X-WING AVIATION: Disclosures OK'd; Plan Hearing Set for Sept. 15 ---------------------------------------------------------------- The Hon. Daniel P. Collins of the U.S. Bankruptcy Court for the District of Arizona approved the first amended disclosure statement accompanying X-Wing Aviation, LLC's Chapter 11 plan. The hearing to consider the confirmation of the Plan will be held on Sept. 15, 2016, at 11:00 a.m. Headquartered in Gilbert, Arizona, X-Wing Aviation, LLC, filed for Chapter 11 bankruptcy protection (Bankr. D. Ariz. Case No. 15-09002) on July 17, 2015, estimating its assets at up to $50,000 and liabilities at between $1 million and $10 million. The petition was signed by Alvin F. Skinner, Jr., sole member. Judge Daniel P. Collins presides over the case. M. Preston Gardner, Esq., at Davis Miles Mcguire Gardner PLLC, serves as the Debtor's bankruptcy counsel. YH LIMITED: Chapter 15 Recognition Hearing Set for September 7 -------------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of New York scheduled a hearing for Sept. 7, 2016, at 2:00 p.m. (New York Time) in Room 623, One Bowling Green, New York, New York, to consider approval of the verified petition for recognition of foreign main proceeding pursuant to Chapter 15 filed by Christian Henry Wells, in his capacity as the foreign representative in respect of a voluntary refinancing proceeding concerning YH Limited currently pending before the Chancery Division (Companies Court) of the High Court of Justice of England and Wales. Objections, if any, are due Aug. 31, 2016, at 12:00 noon. Based in Reading, United Kingdom, YH Limited provides yellow pages directory listings. Christian Henry Wells filed for Chapter 15 petition for YH Limited (Bankr. S.D.N.Y. Case No. 16-12262) on Aug. 3, 2016. The case is assigned to Hon. Shelley C. Chapman. The Chapter 15 Petitioner is represented by Emil A. Kleinhaus, Esq., Neil K. Chatani, Esq., Natasha J. Fernandez-Silber, Esq., at Wachtell, Lipton, Rosen & Katz. The Debtor estimated assets of between $5 million and $1 billion, and debts of more than $1 billion. [*] IRS Adopts New Audit Rule to Limit Tax Discharges ----------------------------------------------------- Vidya Kauri, writing for Bankruptcy Law360, reported that a new rule forcing partnerships to declare they won't voluntarily file for bankruptcy as a prerequisite for electing a revamped tax audit regime is being billed by experts as an unexpected move by the Internal Revenue Service to prevent the new regime from being abused to avoid tax liabilities. The IRS released the rules on Aug. 4 after Congress in November signed the new audit regime into law as part of the Bipartisan Budget Act of 2015. [^] BOOK REVIEW: The First Junk Bond ------------------------------------ Author: Harlan D. Platt Publisher: Beard Books Softcover: 236 pages List Price: $34.95 Review by Gail Owens Hoelscher Order your personal copy today and one for a colleague at http://www.beardbooks.com/beardbooks/the_first_junk_bond.html Only one in ten failed businesses is equal to the task of reorganizing itself and satisfying its prior debts in some fashion. This engrossing book follows the extraordinary journey of Texas International, Inc (known by its New York Stock Exchange stock symbol, TEI), through its corporate growth and decline, debt exchange offers, and corporate renaissance as Phoenix Resource Companies, Inc. As Harlan Platt puts it, TEI "flourished for a brief luminous moment but then crashed to earth and was consumed." TEI's story features attention-grabbing characters, petroleum exploration innovations, financial innovations, and lots of risk taking. The First Junk Bond was originally published in 1994 and received solidly favorable reviews. The then-managing director of High Yield Securities Research and Economics for Merrill Lynch said that the book "is a richly detailed case study. Platt integrates corporate history, industry fundamentals, financial analysis and bankruptcy law on a scale that has rarely, if ever, been attempted." A retired U.S. Bankruptcy Court judge noted, "(i)t should appeal as supplementary reading to students in both business schools and law schools. Even those who practice.in the areas of business law, accounting and investments can obtain a greater understanding and perspective of their professional expertise." "TEI's saga is noteworthy because of the company's resilience and ingenuity in coping with the changing environment of the 1980s, its execution of innovative corporate strategies that were widely imitated and its extraordinary trading history," says the author. TEI issued the first junk bond. In 1986 it achieved the largest percentage gain on the NYSE, and in 1987 suffered the largest percentage loss. It issued one of the first bonds secured by a physical commodity and then later issued one of the first PIK (payment in kind) bonds. It was one of the first vulture investors, to be targeted by vulture investors later on. Its president was involved in an insider trading scandal. It innovated strip financing. It engaged in several workouts to sell off operations and raise cash to reduce debt. It completed three exchange offers that converted debt in to equity. In 1977, TEI, primarily an oil production outfit, had had a reprieve from bankruptcy through Michael Milken's first ever junk bond. The fresh capital had allowed TEI to acquire a controlling interest of Phoenix Resources Company, a part of King Resources Company. TEI purchased creditors' claims against King that were subsequently converted into stock under the terms of King's reorganization plan. Only two years later, cash deficiencies forced Phoenix to sell off its nonenergy businesses. Vulture investors tried to buy up outstanding TEI stock. TEI sold off its own nonenergy businesses, and focused on oil and gas exploration. An enormous oil discovery in Egypt made the future look grand. The value of TEI stock soared. Somehow, however, less than two years later, TEI was in bankruptcy. What a ride! All told, the book has 63 tables and 32 figures on all aspects of TEI's rise, fall, and renaissance. Businesspeople will find especially absorbing the details of how the company's bankruptcy filing affected various stakeholders, the bankruptcy negotiation process, and the alternative post-bankruptcy financial structures that were considered. Those interested in the oil and gas industry will find the book a primer on the subject, with an appendix devoted to exploration and drilling, and another on oil and gas accounting. Harlan Platt is professor of Finance at Northeastern University. He is president of 911RISK, Inc., which specializes in developing analytical models to predict corporate distress. ********* 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 ***