/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/160819.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 19, 2016, Vol. 20, No. 232 Headlines 1201 N. SWAN: Taps Kasey C. Nye as Legal Counsel 21ST CENTURY: Signs Waiver Agreement with Morgan Stanley, et al. ALTOMARE AUTO: Seeks to Hire WithumSmith as Accountant AMERICAN MEDIA: Delays Filing of June 30 Form 10-Q AMERICAN POWER: Needs More Time to File June 30 Form 10-Q AMERICAN SUNBELT: Can Use Cash of SFC and IRS Until Sept. 7 AMPLIPHI BIOSCIENCES: Incurs $6.3 Million Net Loss in 2nd Quarter AMWINS GROUP: S&P Raises CCR to 'B+', Outlook Stable AMYRIS INC: Needs Additional Financing to Continue as Going Concern APEX ENDODONTICS OF TN: Sept. 13 Disclosure Statement Hearing Set ARNOLD HANSEN: General Unsecured Creditors to Get 100% of Claims ASHLEY I LLC: Exit Plan To Pay General Unsecured Creditors in Full ASHLEY II: Files Reorganization Plan to Exit Chapter 11 ASPEN GROUP: Files Copy of Presentation Materials with SEC BALTIMORE GRILL: Trustee Taps Fitzpatrick as Accountant BASIC ENERGY: Defers $18.4 Million Notes Interest Payment BION ENVIRONMENTAL: Releases Updated Company Presentation BOISE CASCADE: S&P Affirms BB- Rating on Senior Unsecured Notes BOOK REVIEW: Competition, Regulation, and Rationing BREMAR DEVELOPMENT: Case Summary & 8 Unsecured Creditors BULOVA TECHNOLOGIES: Delays Filing of June 30 Quarterly Report BURCON NUTRASCIENCE: Incurs C$1.6-Mil. Net Loss in First Quarter BURGI CORP: Seeks to Hire Junkermier as Accountant CAMERON PARK: Must Pay Redding Bank $907 for Cash Use CASPIAN SERVICES: Incurs $423,000 Net Loss in Third Quarter CATASYS INC: Touts Rapid Rollout of OnTrak Solution CHESTLIN LLC: Seeks to Hire Desai Eggmann as Legal Counsel CHINA BAK: Delays Filing of June 30 Form 10-Q CHRISTOPHER RIDGEWAY: Disclosure Statement Hearing on Sept. 6 CIRCUS FURNITURE: Taps Cunningham & Assoc. to Sell Vehicles CLASSIC COMMUNITIES: Taps Turn Key as Real Estate Broker CLEANFUEL USA: Files Plan and Disclosure Statement CLEVELAND BIOLABS: Incurs $1.88 Million Net loss in Second Quarter CORWIN PLACE: Hires Jacks Legal Group as Co-counsel CRYOPORT INC: Secures 28 New Clients, 34% Growth in Fiscal Q1 CYRUSONE INC: S&P Raises CCR to 'BB-', Outlook Positive DAKOTA PLAINS: Decline in Oil Price Raises Going Concern Doubt DELL INC: Can Use Up to $75K Cash Collateral on Interim Basis DIFFERENTIAL BRANDS: Incurs $3.60-Mil. Net Loss in Second Quarter DIFFUSION PHARMACEUTICALS: Incurs $3.80 Million Net Loss in Q2 DIFFUSION PHARMACEUTICALS: Isaac Blech Named as Director DOLPHIN DIGITAL: Delays Filing of Quarterly Report DOMINION PAVING: Unsecured Creditors to Get 35% Under Exit Plan DORAL FINANCIAL: Panel Seeks Approval of FDIC Settlement DRAW ANOTHER CIRCLE: Hilco to Assist in Sale of IP Assets EAST TEXAS MEDICAL CENTER: Moody's Cuts Debt Rating to Ba1 ECOSPHERE TECHNOLOGIES: Notes Amendments Delay Form 10-Q Filing ELBIT IMAGING: Insightec Signs Cooperation Agreement with Siemens ELEPHANT TALK: Stockholders Elect Four Directors ELEPHANT TALK: Swings to $2.82M Net Loss in Q2 2016 Quarter EMMAUS LIFE: Delays Filing of Quarterly Report with SEC ENERGY XXI: Equity Panel Hires Trott & Duncan as Bermuda Counsel EQUINIX INC: S&P Raises CCR to 'BB+', Off Watch Positive FIRED UP: Gets Final OK to Use Cash Collateral Through Nov. 2 FORESIGHT ENERGY: Appoints Brian Sullivan as Director FRANKLIN LOCKE: Selling Wine Collection to CANA for $9K FREDDIE MAC: Fed. Cir. Affirms Dismissal of Former CFO's Lawsuit FRESH & EASY: Committee Taps ASK LLP as Special Counsel FTE NETWORKS: Reports $1.11 Million Net Loss for Second Quarter FURR TRANSMISSIONS: Selling All Assets to Insider for $35K GELTECH SOLUTIONS: Issues $175,000 Convertible Note to President GENERAL PRODUCTS: Great Lakes No Longer Member of Committee GENIUS BRANDS: Incurs $1.43 Million Net Loss in Second Quarter GENIUS BRANDS: Issues Letter to Shareholders GERARD BOEH FLOWERS: Hires Stanley Kirshenbaum as Counsel GLEN ROBERT ANLIKER: Disclosure Statement Has Final Approval GLOBAL COMMODITY: Disclosure Statement Hearing Moved to Sept. 14 GLYECO INC: Incurs $1M Q2 Net Loss, Raises Going Concern Doubt GRAYN COMPANY: Hires Brownstein as Counsel GRIZZLY LAND: Trustee Taps Burns Figa as Special Counsel GUIDED THERAPEUTICS: Change in Personnel Causes Form 10-Q Delay GUIDO DIMITRI: Plan to Pay Unsecured Claims in Full in 7 Years GULF CHEMICAL: SiderAlloys Has $3M Offer; Auction on Sept. 7 HALCON RESOURCES: Receives Noncompliance Notice from NYSE HAMILTON TRUCKING: Plan Confirmation Hearing Set for Sept. 15 HAPPYWORKS DAY CARE: U.S. Trustee Unable to Appoint Committee HCSB FINANCIAL: Deregisters 9.21 Million Common Shares HERCULES OFFSHORE: Hogan, Kasowitz Represent Equity Committee HERNAN VELEZ JUAN: Disclosure Statement Hearing Set for Sept. 27 HMF GOLF: Seeks 150-Day Extension to Time to File Plan HOWSE IMPLEMENT: Hires Reich Brothers as Asset Consultant HUTCHESON MEDICAL: Trustee Taps Poole Huffman as Special Counsel ICAGEN INC: Posts $1.18M Net Loss in Second Quarter INDEPENDENCE TAX II: Had $210K Q1 Loss, Raises Going Concern Doubt INDEPENDENCE TAX IV: Incurs $107,000 Net Loss in First Quarter INTERLEUKIN GENETICS: Incurs $2.08 Million Net Loss in 2nd Quarter JCHS CORP: Latest Plan Increases Unsecureds' Recovery to 30% KALOBIOS PHARMACEUTICALS: Kapil Dhar Reports 6.37% Stake KALOBIOS PHARMACEUTICALS: Reorganization Delays Form 10-Q Filing KANKAKEE COUNTY, IL: Moody’s Affirms B1 Debt Certificate Rating KATTOUR INC: Taps USA Lending's Zena Bardawell as Realtor KCC INTERNATIONAL: Must File Chapter 11 Plan by Nov. 1 KENNETH ALAN SARGENT: Plan Confirmation Hearing Set for Sept. 7 KEVIN CHRISTOPHER GLEASON: Court Wants Plan, Disclosures Revised KEY ENERGY: Reports Second Quarter 2016 Earnings KINEMED INC: Seeks Dec. 31 Extension of Plan Filing Date KIRBY BROTHERS: Seeks to Hire Kathleen Stoneback as Accountant LANSING TRADE: Moody's Cuts Corporate Family Rating to B2 LARRY J. ADKINS: Taps Jason A. Burgess as Legal Counsel LAS VEGAS JOHN: Community Bank Wants Exclusive Period Terminated LENNAR BUFFINGTON: Court Oks Sale of Property to RSI Communities LIBERTY INTERACTIVE: Fitch Rates Proposed Sr. Unsec. Debentures BB LIBERTY INTERACTIVE: S&P Assigns 'BB' Rating on $500MM Debentures LIME ENERGY: Incurs $3.76 Million Net Loss in Second Quarter LITE SOLAR: Hires Sussman Shank as Special Counsel LOGAN'S ROADHOUSE: Files Reorganization Plan & Disc. Statement MARCIE ELECTRIC: Plan Confirmation Hearing Set for Sept. 14 MARINA BIOTECH: Incurs $643,000 Net Loss in Second Quarter MARIO SILVERIO GRANADOS: Disclosures OK'd, Ch.11 Plan Confirmed MAX EXPRESS: Court Extends Exclusive Plan Filing Date to Sept. 29 MBAC FERTILIZER: Obtains Extension of CCAA Stay Period MCGEE EQUIPMENT: Revised Plan Earmarks $60,000 for Unsecureds MEGA INC: Disclosures Okayed; Plan Hearing Set for Sept. 2 METROTEK ELECTRICAL: Taps Bressler Amery as Special Counsel METROTEK ELECTRICAL: Taps Gorski & Knowlton as Legal Counsel METROTEK ELECTRICAL: Taps Lanciano & Associates as Special Counsel MGM RESORTS: GPM to Transfer 4.95% Stake in MGM China to MRIH MGM RESORTS: Offering $500 Million Senior Notes MGM RESORTS: Revises Supplemental Guarantor Financial Information MOBIVITY HOLDINGS: Incurs $996,000 Net loss in Second Quarter NATIONAL CINEMEDIA: Prices Offering of $250M 5.75% Senior Notes NATIONAL CINEMEDIA: Proposes Private Offering of $250M Notes NEONODE INC: To Raise $8.7 Million in Private Placement NEOVASC INC: $70-Mil. Litigation Award Raise Going Concern Doubt NET ELEMENT: Doubts Ability to Continue as Going Concern NET ELEMENT: Reports Second Quarter 2016 Results NIKAI PR: Hires Ruben Gonzalez as Attorney NO PLACE LIKE HOME: Amended Plan to Pay All Creditors in Full NO PLACE LIKE HOME: Glasper Objects to Exit Plan NORMAN EDWARD MCMAHON: Unsecureds to be Paid 50% under Plan NORTHERN OIL: Sacks CEO Over Alleged Securities Act Violation O'BAR DEVELOPMENT: Court OKs Use of Cash Until Confirmation OCULUS INNOVATIVE: Needs More Capital to Continue as Going Concern OI SA: Felsberg Avogados, Morrison & Foerster Joins Deal Team OLGA'S KITCHEN: Taps Plante & Moran to Audit 401k Plan OMINTO INC: Needs More Time to File Form 10-Q OMNICOMM SYSTEMS: Reports Financial Results for Q2 2016 ON QUE FOOD: Seeks to Hire Aristide as Accountant PALADIN ENERGY: Can Access Cash Collateral Through Nov. 1 PANGAEA NETWORKS: $300K Sale of Assets to Cleareon Approved PENN VIRGINIA: Milkbank Advises Noteholders in Reorganization PHYSICAL PROPERTY: Recurring Losses Raise Going Concern Doubt PICO HOLDINGS: Bloggers Criticize Slow Pace of Change PLANET MERCHANT: Voluntary Chapter 11 Case Summary PLASTIC2OIL INC: Delays Form 10-Q Over Staffing Issues PLASTIC2OIL INC: Sold $100,000 Secured Note to Lawrence Leahy PRESIDENTIAL REALTY: Incurs $163,000 Net Loss in Second Quarter PRESSURE BIOSCIENCES: Posts $963K Net Income for June 30 Quarter PROSOLUTIONS LLC: Trustee Taps Guttilla Murphy as Legal Counsel QTS REALTY: S&P Raises CCR to BB-, Off CreditWatch QUANTUM MATERIALS: Continues Work for Joint Development Partner QUEST SOLUTION: Needs More Time to File June 30 Form 10-Q RANCHO ARROYO: Selling Arroyo Grande Personal Property RECYCLING INC: Proposes to Hire Jonathan Klein as Special Counsel REO HOLDINGS: Trustee Hires Manier & Herod as Special Counsel RESPONSE BIOMEDICAL: Recurring Losses Raise Going Concern Doubt RESPONSE BIOMEDICAL: Reports Second Quarter 2016 Results ROCK INVESTMENT: Case Summary & 20 Largest Unsecured Creditors ROYAL CARIBBEAN CRUISES: Moody’s Affirms Ba1 Corp Family Rating RYAN ROTH: Plan Confirmation Hearing Set for Sept. 6 SANDRIDGE ENERGY: Plan Confirmation Hearing to Begin Sept. 6 SANDRIDGE ENERGY: Posts $516 Million Net Loss for 2nd Qtr 2016 SAWYER WOOD: Disclosure Statement Hearing Set for Sept. 8 SCIO DIAMOND: Widens Q2 Net Loss to $1.26 Million SCRANTON-LACKAWANNA: S&P Rates $24.6MM Parking Bonds BB+ SENSUS USA: S&P Puts 'B' CCR on CreditWatch Positive SEQUENOM INC: Faces Lawsuit Over Proposed LabCorp Transaction SOFINTEK INC: Hires Burger & Comer as Accountant SONDIAL PROPERTIES: Proposes to Use Cash Held by CPIF Decatur SOUTHERN SEASON: Selling Substantially All Assets to Focus SPECTRASCIENCE INC: Posts $88K Net Loss for 2nd Quarter 2016 SPENDSMART NETWORKS: Reports Second Quarter 2016 Results SPIRE CORP: Says Two Directors Resigned ST. STEPHENSON M.B.: Case Summary & 2 Unsecured Creditors STAR BODY EXPERT: Unsecured Creditors to Get 10% Under Plan SUGARMAN'S PLAZA: Hires Phillip Stern as Accountant SUNEDISON INC: Obtains Amendment to DIP Credit Agreement SUNVALLEY SOLAR: Needs More Time to File Form 10-Q TAVERNA OUZO GROUP: Exclusive Plan Filing Date Extended to Nov. 14 TECHPRECISION CORP: Posts $445,000 Net Income for First Quarter TELKONET INC.: Incurs $672,000 Net Loss in Second Quarter TONGJI HEALTHCARE: Delays Filing of June 30 Form 10-Q TRANSGENOMIC INC: Recurring Losses Raise Going Concern Doubt UNIVERSAL SECURITY: Needs More Time to File June 30 Form 10-Q VALEANT PHARMACEUTICALS: Lenders Approve Loan Amendment VALEANT PHARMACEUTICALS: T. Rowe Price Sues Over Losses VERTICAL COMPUTER: Delays Filing of June 30 Form 10-Q VISCOUNT SYSTEMS: Delays Form 10-Q to Complete Review WANDA ORTIZ CARRERAS: Amended Plan to Pay 42% to Unsecureds WARREN RESOURCES: Blames Bankruptcy for Delay in Form 10-Q Filing WAVE SYSTEMS: Court Approves Disclosure Statement WGC INC: Wants Additional 150 Days to File Plan WHITE STAR: S&P Affirms 'CCC+' CCR, Outlook Negative WOLVERINE WORLD: S&P Affirms 'BB+' CCR & Revises Outlook to Neg. YAHWEH CENTER: Case Summary & 20 Largest Unsecured Creditors ZYNEX INC: Delays Filing of June 30 Form 10-Q ********* 1201 N. SWAN: Taps Kasey C. Nye as Legal Counsel ------------------------------------------------ 1201 N. Swan, LLC seeks approval from the U.S. Bankruptcy Court for the District of Arizona to hire Kasey C. Nye Lawyer, PLLC. The firm will serve as the Debtor's legal counsel in connection with its Chapter 11 case. Kasey Nye, Esq., the lawyer designated to represent the Debtor, will be paid $275 per hour for his services. Meanwhile, the firm's associates and paralegals will be paid $225 per hour and $150 per hour, respectively. Kasey has no connections to the Debtor or any of its creditors, according to court filings. The firm can be reached through: Kasey C. Nye, Esq. Kasey C. Nye Lawyer, PLLC 1661 North Swan Road, Suite 238 Tucson, AZ 85712 Phone: (520) 399-7361 Fax: (520) 413-2147 Email: knye@kcnyelaw.com 1201 N. Swan, LLC sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D. Ariz. Case No. 16-09256) on Aug. 11, 2016. 21ST CENTURY: Signs Waiver Agreement with Morgan Stanley, et al. ---------------------------------------------------------------- 21st Century Oncology Holdings, Inc. entered into an amendment and waiver to the Credit Agreement, dated as of April 30, 2015, among the Company, the Company's subsidiary, 21st Century Oncology, Inc. ("21C"), the lenders party thereto from time to time, Morgan Stanley Senior Funding, Inc., as administrative agent, and the other agents and arrangers named therein. Amendment No. 2 provides for a limited waiver: (1) through Sept. 10, 2016, in respect of (a) any default or event of default under the Credit Agreement resulting from failure to provide audited annual financial statements and related reports and certificates for the year ended Dec. 31, 2015, without a "going concern" or like qualification as and when required pursuant to the Credit Agreement and (b) any cross-default that may arise under the Credit Agreement as a result of a default or event of default under 21C's Indenture, dated April 30, 2015, among 21C, the guarantors named therein and Wilmington Trust, National Association, as trustee, governing 21C's 11.00% Senior Notes due 2023, which occurs as a result of the Company's failure to timely furnish to the Trustee and holders of the Notes or file with the Securities and Exchange Commission the financial information required in an annual report on Form 10-K for the year ended Dec. 31, 2015; and (2) through Sept. 30, 2016, in respect of (a) any default or event of default under the Credit Agreement resulting from failure to timely provide quarterly financial statements and related reports and certificates for the quarters ended March 31, 2016, and June 30, 2016, and (b) any cross-default that may arise under the Credit Agreement as a result of a default or event of default under the Indenture which occurs as a result of the Company's failure to timely furnish to the Trustee and holders of the Notes or file with the SEC the financial information required in a quarterly report on Form 10-Q for each of the quarters ended March 31, 2016 and June 30, 2016. In addition, Amendment No. 2 requires 21C to receive: (1) no later than Sept. 10, 2016, net cash proceeds from the issuance or sale of 21C’s capital stock or from other equity investments in an aggregate amount of at least $25.0 million; (2) no later than Nov. 30, 2016, additional net cash proceeds from the issuance or sale of 21C's capital stock or from other equity investments and/or sales of assets (which sale transactions must be deleveraging transactions on a pro forma basis) in an aggregate amount of at least $25.0 million (or a lesser amount such that when combined with the proceeds from the First Capital Event, the total amount is not less than $50.0 million) (the "Second Capital Event"); and (3) no later than March 31, 2017, additional net cash proceeds from the issuance or sale of 21C's capital stock or from other equity investments and/or sales of assets (which sale transactions must be deleveraging transactions on a pro forma basis) in an aggregate amount of at least the lesser of (A) $75.0 million (or a lesser amount such that when combined with the proceeds from the First Capital Event and the Second Capital Event, the total amount is not less than $125.0 million), and (B) an amount such that, after giving effect to such issuance or sale of capital stock or other equity investments and/or sales of assets, 21C's cash and cash equivalents plus unused revolving loan commitments equals at least $120.0 million and 21C's consolidated leverage ratio is not greater than 6.4 to 1.00 (the "Third Capital Event" and together with the First Capital Event and the Second Capital Event, the "Capital Events" and each, a "Capital Event"). Notwithstanding any qualification provided for in the above described Capital Events, Amendment No. 2 requires that 21C receive, on or prior to March 31, 2017, at least $50.0 million of net cash proceeds from the issuance or sale of 21C's capital stock or from other equity investments. Amendment No. 2 provides for a new minimum liquidity covenant pursuant to which 21C must maintain at least $40.0 million of liquidity after the completion of the First Capital Event, which will be tested monthly prior to the completion of the Third Capital Event and quarterly thereafter. Amendment No. 2 also amends certain existing covenants (and definitions related thereto) in the Credit Agreement and provides for additional restrictions regarding the ability of 21C and certain of its subsidiaries to incur additional debt, make restricted payments and make investments. These covenants are subject to a number of important limitations and exceptions. Supplemental Indenture On Aug. 16, 2016, 21C received the requisite consents from the holders of a majority of the aggregate principal amount of the Notes outstanding to enter into a third supplemental indenture to the Indenture. The Supplemental Indenture provides for a limited waiver: (1) through Sept. 10, 2016, in respect of certain defaults or events of default under the Indenture resulting from failure to timely furnish to the Trustee and holders of the Notes or file with the SEC the 2015 SEC Report; and (2) through Sept. 30, 2016, in respect of certain defaults or events of default under the Indenture resulting from failure to timely furnish to the Trustee and holders of the Notes or file with the SEC the Quarterly SEC Reports. The Supplemental Indenture requires 21C to complete each Capital Event as described above and in the same time frame described above. The Supplemental Indenture provides for a new minimum liquidity covenant pursuant to which 21C must maintain at least $40.0 million of liquidity after the completion of the First Capital Event, which will be tested monthly prior to the completion of the Third Capital Event and quarterly thereafter. The Supplemental Indenture also amends certain existing covenants (and definitions related thereto) in the Indenture and provides for additional restrictions regarding the ability of 21C and certain of its subsidiaries to incur additional debt and pay dividends on or make distributions in respect of their equity interests or make other restricted payments. These covenants are subject to a number of important limitations and exceptions. Pursuant to the Supplemental Indenture, in addition to any cash interest provided for in the Indenture, during the period starting on August 1, 2016 through August 31, 2016, holders of the Notes will be entitled to PIK interest at a rate of 0.75% per annum, which rate will increase by an additional 0.75% per annum on the first day of each subsequent month, commencing on September 1, 2016. PIK interest will be paid monthly on the first day of each month, starting on September 1, 2016. PIK interest will stop accruing on the date of completion of the Third Capital Event, and the last PIK interest payment will be made on the first day of the month following such date. The Supplemental Indenture also provides that the holders of a majority of the aggregate principal amount of the Notes outstanding shall have the right to designate one non-voting board observer to attend meetings of the Board of Directors of each of the Company and 21C until the date of completion of the Third Capital Event. About 21st Century 21st Century Oncology, Inc., formerly known as Radiation Therapy Services, Inc. ("RTS") owns and operates radiation treatment facilities in the US and Latin America. As of Sept. 30, 2015, the Company had $1.09 billion in total assets, $1.33 billion in total liabilities, $370 million in series A convertible redeemable preferred stock, $19.9 million in noncontrolling interests and a total deficit of $623 million. * * * As reported by the TCR on Feb. 27, 2015, Moody's Investors Service upgraded 21st Century Oncology, Inc.'s Corporate Family Rating and Probability of Default Rating to B3 and B3-PD, respectively. The upgrade of the Corporate Family Rating to B3 and SGL to SGL-2 reflects the receipt of a $325 million preferred equity investment from the Canada Pension Plan Investment Board and subsequent debt reduction. As reported by the TCR on May 20, 2016, S&P Global Ratings lowered its corporate credit rating on 21st Century to 'CCC' from 'B-' and placed the rating on CreditWatch with negative implications. ALTOMARE AUTO: Seeks to Hire WithumSmith as Accountant ------------------------------------------------------ Altomare Auto Group, LLC and Altomare 22 Union, LLC seek approval from the U.S. Bankruptcy Court for the District of New Jersey to hire an accountant in connection with their Chapter 11 cases. The Debtors propose to hire WithumSmith & Brown to prepare and file their tax returns. The firm's professionals and their hourly rates are: Partner $354 Manager $314 Supervisor $254 Senior $224 Elliot DeSanto, a certified public accountant, disclosed in a court filing that his firm is "disinterested" as defined in section 101(14) of the Bankruptcy Code. The firm may be reached at: Elliot J. DeSanto CPA, Partner WithumSmith+Brown 506 Carnegie Center #400 Princeton, NJ 08540 Tel: 732-572-3900 E-mail: edesanto@withum.com The Debtors are represented by: Daniel M. Stolz, Esq. Leonard C. Walczyk, Esq. Wasserman, Jurista & Stolz, P.C. 110 Allen Road, Suite 304 Basking Ridge, NJ 07920 Phone: (973) 467-2700 Fax: (973) 467-8126 Email: dstolz@wjslaw.com About Altomare Altomare Auto Group, LLC sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D. N.J. Case No. 16-22376) on June 27, 2016. On June 30, 2016, Altomare 22 Union, LLC filed a Chapter 11 petition (Bankr. D. N.J. Case No. 16-22628). The petitions were signed by Anthony Altomare, managing member. The cases are jointly administered and are assigned to Judge John K. Sherwood. At the time of the filing, Altomare Auto disclosed $9.04 million in assets and $12.78 million in liabilities. Meanwhile, Altomare 22 disclosed $256,877 in assets and $6.24 million in liabilities. AMERICAN MEDIA: Delays Filing of June 30 Form 10-Q -------------------------------------------------- American Media, Inc., disclosed in a regulatory filing with the Securities and Exchange Commission that it could not complete the filing of its quarterly report on Form 10-Q for the fiscal quarter ended June 30, 2016, within the prescribed time period due to a delay in obtaining and compiling information required to be included therein, which delay could not be eliminated by the Company without unreasonable effort and expense. The Company expects to report total operating revenues of $49.0 million and operating income of $5.6 million for the quarter ended June 30, 2016, compared to total operating revenues of $56.1 million and operating income of $5.0 million reported for the quarter ended June 30, 2015. The decline in operating revenues were due to (i) the decline in the celebrity magazine market, (ii) the decline in advertising pages sold due to the continuing trend of advertisers shifting advertising spending from print to other media sources and (iii) the timing of certain non-recurring revenue streams. About American Media Based in New York, American Media, Inc., publishes celebrity journalism and health and fitness magazines in the U.S. These include Star, Shape, Men's Fitness, Fit Pregnancy, Natural Health, and The National Enquirer. In addition to print properties, AMI manages 14 different Web sites. The company also owns Distribution Services, Inc., an in-store magazine merchandising company. American Media, Inc., and 15 units, including American Media Operations, Inc., filed for Chapter 11 protection in Manhattan (Bankr. S.D.N.Y. Case No. 10-16140) on Nov. 17, 2010, with a prepackaged plan. The Debtors emerged from Chapter 11 reorganization in December 2010, handing ownership to former bondholders. The new owners include hedge funds Avenue Capital Group and Angelo Gordon & Co. American Media reported net income of $18.0 million on $223 million of total operating revenues for the fiscal year ended March 31, 2016, compared to a net loss of $25.9 million on $245 million of total operating revenues for the fiscal year ended March 31, 2015. As of March 31, 2016, American Media had $422 million in total assets, $501 million in total liabilities, $3 million in redeemable non-controlling interests and a $82.5 million total stockholders' deficit. * * * As reported in the Jan. 9, 2015 edition of the TCR, American Media carries a 'Caa1' corporate family rating from Moody's. American Media's Caa1 CFR reflects the company's elevated total debt to EBITDA leverage that Moody's expect will rise to the 8-9x range (Moody's adjusted) over the rating horizon from about 7x as of Sept. 30, 2014 as a result of lower EBITDA performance that stems from a reduction in circulation sales associated with the bankruptcy filing of AMI's second largest publications wholesaler, Source Interlink Distribution ("Source"). The rating also captures AMI's weak liquidity profile and deteriorating EBITDA cushion under the revolver's first-lien leverage covenant resulting from the lower circulation revenue aggravated by the Source bankruptcy, which required temporary covenant relief through an amendment to the credit facility. As reported by the TCR on March 29, 2016, Standard & Poor's Ratings Services said that it lowered its corporate credit rating on Boca Raton, Fla.-based American Media Inc. to 'SD' (selective default) from 'CCC+'. The downgrades follow American Media's announcement that it has completed an exchange of $58.9 million of its existing 11.5% first-lien senior secured notes due 2017 for $78 million 7% senior secured second-lien notes due 2020. Concurrent with the exchange, the company issued and distributed about $83.5 million of additional second-lien notes to equity holders. AMERICAN POWER: Needs More Time to File June 30 Form 10-Q --------------------------------------------------------- American Power Group Corporation filed a Form 12b-25 with the Securities and Exchange Commission notifying the delay in the filing of its quarterly report on Form 10-Q for the period ended June 30, 2016. The Company said additional time is required in order to prepare and file its Form 10Q for the quarter ended June 30, 2016. The Company further represents that the Form 10-Q will be filed by no later than the 5th calendar day following the date on which the Form 10-Q was due. The Company anticipates reporting revenues of approximately $524,000 for the three months ended June 30, 2016, as compared to approximately $556,000 for the three months ended June 30, 2015. Because the Company's dual fuel technology displaces higher cost diesel fuel with lower cost and cleaner burning natural gas, the recent decrease in oil/diesel pricing has impacted the timing of dealer restocking orders and the implementation schedules of existing and prospective customers in the near term due to the current tighter price spread between diesel and natural gas. The Company anticipates reporting a net loss of approximately $1.45 million for the three months ended June 30, 2016, as compared to a net loss of approximately $1.60 million for the three months ended June 30, 2015. The results for the three months ended June 30, 2016 and 2015 reflect the inclusion of approximately $6,000 and $154,000, respectively, of other non-cash income associated with the revaluation of certain outstanding investor warrants. The results for the three months ended June 30, 2015 also included approximately $454,000 of non-cash expense associated with the term extension on certain investor warrants. As a result of the net losses incurred to date, the Company anticipates reporting a net working capital deficit of approximately $2.62 million at June 30, 2016, as compared to a net working capital deficit of approximately $1.27 million at June 30, 2015. About American Power Group American Power Group's alternative energy subsidiary, American Power Group, Inc., provides a cost-effective patented Turbocharged Natural Gas conversion technology for vehicular, stationary and off-road mobile diesel engines. American Power Group's dual fuel technology is a unique non-invasive energy enhancement system that converts existing diesel engines into more efficient and environmentally friendly engines that have the flexibility to run on: (1) diesel fuel and liquefied natural gas; (2) diesel fuel and compressed natural gas; (3) diesel fuel and pipeline or well-head gas; and (4) diesel fuel and bio-methane, with the flexibility to return to 100 percent diesel fuel operation at any time. The proprietary technology seamlessly displaces up to 80% of the normal diesel fuel consumption with the average displacement ranging from 40 percent to 65 percent. The energized fuel balance is maintained with a proprietary read-only electronic controller system ensuring the engines operate at original equipment manufacturers' specified temperatures and pressures. Installation on a wide variety of engine models and end-market applications require no engine modifications unlike the more expensive invasive fuel-injected systems in the market. See http://www.americanpowergroupinc.com/ For the 12 months ended Sept. 30, 2015, the Company reported a net loss available to common shareholders of $1.04 million on $2.95 million of net sales compared to a net loss available to common shareholders of $920,000 on $6.28 million of net sales for the 12 months ended Sept. 30, 2014. As of March 31, 2016, American Power had $10.8 million in total assets, $9.04 million in total liabilities and $1.73 million in total stockholders' equity. AMERICAN SUNBELT: Can Use Cash of SFC and IRS Until Sept. 7 ----------------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of Texas authorized American Sunbelt Enterprises, Inc. to use the Cash Collateral of Swift Financial Corporation and the Internal Revenue Service through September 7, 2016. The Debtor was authorized to use Cash Collateral to pay its reasonable and necessary operating expenses, including, but not limited to, salaries, gross pre-petition wages, withholdings and deductions, post-petition wages, withholdings and deductions, supplies, quarterly fees to the U.S. Trustee, routine repair and maintenance expenses, inventory purchases, taxes, and insurance. Swift Financial and the IRS were granted replacement liens and security interests in the Debtor’s cash and receipts but only to the same extent, validity and priority that the liens and security interests existed prior to the bankruptcy filing and subject to the Debtor’s reservation of rights to contest the validity of SFC’s security interest. The Debtor was directed to make a one-time payment to Swift Financial in the amount of $1,500.00 on August 30, 2016, as further adequate protection to Swift Financial. The Final Hearing on the use of Cash Collateral is scheduled on August 31, 2016 at 1:15 p.m. A full-text copy of the Interim Cash Collateral Order dated August 11, 2016 is available at http://tinyurl.com/htt6kfn About American Sunbelt American Sunbelt Enterprises, Inc. filed a Chapter 11 petition (Bankr. N.D. Tex. Case No. 16-33151), on August 5, 2016. The petition was signed by David Watson, president. The case is assigned to Hon. Barbara J. Houser. The Debtor is represented by Areya Holder, Esq., at the Law Office of Areya Holder, P.C. At the time of filing, the Debtor had $1 million to $10 million in estimated assets and $100,000 to $500 million in estimated liabilities. The Debtor did not include a list of its largest unsecured creditors when it filed the petition. AMPLIPHI BIOSCIENCES: Incurs $6.3 Million Net Loss in 2nd Quarter ----------------------------------------------------------------- Ampliphi Biociences Corporation filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss attributable to common stockholders of $6.35 million on $103,000 of revenue for the three months ended June 30, 2016, compared to net income attributable to common stockholders of $8.94 million on $102,000 of 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 common stockholders of $11.18 million on $209,000 of revenue compared to a net loss attributable to common stockholders of $5.89 million on $204,000 of revenue for the same period last year. "We have made significant progress executing on our clinical programs and look forward to presenting top-line data for both clinical trials later this year," said M. Scott Salka, CEO of AmpliPhi Biosciences. "The threat posed by drug-resistant infections is universally acknowledged. World leaders from government, medical and scientific communities continue to stress the importance of addressing this threat, and we remain confident that bacteriophage-based therapies will not only provide a potential alternative to existing broad-spectrum antibiotics, but will also be used to resensitize antibiotic-resistant infections to increasingly ineffective drugs, thereby ensuring the continued effectiveness of the drugs we currently use to treat serious, life-threatening infections." As of June 30, 2016, Ampliphi had $29.27 million in total assets, $7.79 million in total liabilities and $21.48 million in total stockholders' equity. The Company has incurred net losses since inception through June 30, 2016 of $369.5 million, of which $315.5 million was incurred as a result of the Company's prior focus on gene therapy in fiscal years 2010 and earlier. The Company has not generated any product revenues and do not expect to generate revenue from product candidates in the near term. The Company had cash and cash equivalents of $7.1 million and $9.4 million at June 30, 2016 and Dec. 31, 2015, respectively. "Our ability to raise additional funds will depend in part on the success of our preclinical studies and clinical trials and other product development activities, regulatory events, our ability to identify and enter into in-licensing or other strategic arrangements, and other events or conditions that may affect our value or prospects, as well as, factors related to financial, economic and market conditions, many of which are beyond our control. "We cannot be certain that sufficient funds will be available to us when required or on acceptable terms. If we are unable to secure additional funds on a timely basis or on acceptable terms we may be required to defer, reduce or eliminate significant planned expenditures, restructure, curtail or eliminate some or all of our development programs or other operations, dispose of technology or assets, pursue an acquisition of our company by a third party at a price that may result in a loss on investment for our stockholders, enter into arrangements that may require us to relinquish rights to certain of our product candidates, technologies or potential markets, file for bankruptcy or cease operations altogether. Any of these events could have a material adverse effect on our business, financial condition and results of operations. Moreover, if we are unable to obtain additional funds on a timely basis, there will be substantial doubt about our ability to continue as a going concern and increased risk of insolvency and loss of investment by our stockholders. To the extent that additional capital is raised through the sale of equity or convertible debt securities, the issuance of such securities could result in dilution to our existing stockholders," the Company stated in the report. The Company's quarterly report on Form 10-Q is available from the SEC website at https://is.gd/ixl2Ip About AmpliPhi AmpliPhi Biosciences Corp. is a biopharmaceutical company that develops bacteriophage-based therapeutics. It also develops an internally generated pipeline of naturally occurring viruses called bacteriophage (Phage) for the treatment of bacterial infection, such as drug-resistant strains of bacteria that are commonly found in the hospital setting. The company's Phage discovery also focuses on acute & chronic lung, sinus and gastrointestinal infections. AmpliPhi Biosciences was founded in March 1989 and is headquartered in Glen Allen, Virginia. Ampliphi Biosciences reported a net loss attributable to common stockholders of $10.79 million on $475,000 of revenue for the year ended Dec. 31, 2015, compared to net income attributable to common stockholders of $21.8 million on $409,000 of revenue for the year ended Dec. 31, 2014. Ernst & Young LLP, in Richmond, Virginia, issued a "going concern" qualification on the Company's consolidated financial statements for the year ended Dec. 31, 2015, citing that the Company has recurring losses from operations and has a net capital deficiency that raise substantial doubt about its ability to continue as a going concern. AMWINS GROUP: S&P Raises CCR to 'B+', Outlook Stable ---------------------------------------------------- S&P Global Ratings said that it raised its long-term corporate credit rating on core subsidiary AmWINS Group LLC to 'B+' from 'B' and assigned S&P's 'B+' long-term corporate credit rating to holding company AmWINS Group Inc. The outlook is stable. At the same time, S&P is affirming its '3' recovery rating on AmWINS's first-lien debt and S&P's '6' recovery rating on the company's second-lien debt, resulting in the first-lien senior secured debt rating being raised to 'B+' from 'B' and the second-lien senior secured debt rating being raised to 'B-' from 'CCC+'. "The rating change reflects our view that AmWINS's continued strong earnings fundamentals and reduced private-equity ownership have resulted in an improving and less-volatile overall credit profile relative to peers'," said S&P Global Ratings credit analyst Neal Freedman. AmWINS's business risk profile reflects its dominant market position as the largest U.S. wholesale broker by revenue, its diversified business segments, and its extensive broker and carrier relationship that fosters stable margins throughout the insurance underwriting cycle, which S&P assess at the high end of the category. The company continues to demonstrate favorable performance. S&P believes AmWINS's credit profile benefits not only from continued earnings momentum but also from the change in ownership structure that occurred in April 2015, resulting in a reduction in private equity ownership to one-third. Although S&P views AmWINS's leverage as already more conservative than peers', the ownership change gives us additional comfort that the company's credit metrics will remain at these more-conservative levels due to a less-aggressive financial policy. The stable outlook reflects S&P's expectation that AmWINS will continue to grow its revenue base while maintaining healthy and stable margins and a more-conservative financial policy resulting from the reduced private equity ownership. For 2016, S&P expects the company to have revenue growth in the mid- to high-single digits, and S&P expects margins to remain steady at about 30% with a debt-to-EBITDA ratio of 5.0x–5.5x and EBTDA coverage in the 2.5x-3.0x range. S&P also expects the company's business position to remain on the higher end of fair, and the company to maintain its dominant position as the largest U.S. wholesale broker. S&P may lower the current ratings by one notch if AmWINS's earnings or debt levels result in a debt-to-EBITDA ratio consistently greater than 6.0x or coverage consistently below 2.5x. This could occur if the company's earnings were to decline as a result of negative growth or compressed margins, or if the company were to adopt a more-aggressive financial policy. S&P may raise the current ratings by one notch if AmWINS continues its earnings growth while maintaining financial leverage consistently under 5.0x and coverage of at least 3.0x. This would likely occur through a less-aggressive financial policy coupled with revenue growth (about 7.5% in the first half of 2016 compared with the previous period) and stable margins (about 30% on an EBITDA basis). AMYRIS INC: Needs Additional Financing to Continue as Going Concern ------------------------------------------------------------------- Amyris, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $13.57 million on $9.60 million of total revenues for the three months ended June 30, 2016, compared to a net loss of $47.16 million on $7.84 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 $28.87 million on $18.41 million of total revenues compared to a net loss of $99.42 million on $15.71 million of total revenues for the same period during the prior year. As of June 30, 2016, Amyris had $105.86 million in total assets, $255.05 million in total liabilities, $5 million in contingently redeemable common stock, and $154.18 million in total stockholders' deficit. The Company has incurred significant operating losses since its inception and believes that it will continue to incur losses and negative cash flow from operations into at least 2017. As of June 30, 2016, the Company had negative working capital of $108.3 million, an accumulated deficit of $1,066.0 million, and cash, cash equivalents and short term investments of $2.5 million. The Company will need to raise cash from additional financing or strategic asset divestment as early as the third quarter of 2016 to support its liquidity needs. These factors raise substantial doubt about the Company's ability to continue as a going concern. As of June 30, 2016, the Company's debt, net of discount and issuance costs of $44.7 million, totaled $181.4 million, of which $80.0 million is classified as current. In addition to upcoming debt maturities, the Company's debt service obligations over the next twelve months are significant, including $21.0 million of anticipated cash interest payments. The Company's debt agreements contain various covenants, including certain restrictions on the Company's business that could cause the Company to be at risk of defaults, such as the requirement to maintain unrestricted, unencumbered cash in defined U.S. bank accounts in an amount equal to at least 50% of the principal amount outstanding under its loan facility with Stegodon Corporation, as assignee of Hercules Capital, Inc. The Company has received a waiver of compliance with such covenant through October 31, 2016. A failure to comply with the covenants and other provisions of the Company's debt instruments, including any failure to make a payment when required would generally result in events of default under such instruments, which could permit acceleration of such indebtedness. If such indebtedness is accelerated, it would generally also constitute an event of default under the Company's other outstanding indebtedness, permitting acceleration of such other outstanding indebtedness. Any required repayment of such indebtedness as a result of acceleration or otherwise would consume current cash on hand such that the Company would not have those funds available for use in its business or for payment of other outstanding indebtedness. A copy of the Form 10-Q is available at: http://bit.ly/2aRZtKe About Amyris, Inc. Emeryville, Calif.-based Amyris, Inc., is an industrial biotechnology company. The Company applies its technology platform to engineer, manufacture and sell products into a range of consumer and industrial markets, including cosmetics, flavors & fragrances (or F&F), solvents and cleaners, polymers, lubricants, healthcare products and fuels, and seeks to apply its technology to the development of pharmaceuticals products. APEX ENDODONTICS OF TN: Sept. 13 Disclosure Statement Hearing Set ----------------------------------------------------------------- The hearing to consider approval of the Disclosure Statement explaining Apex Endodontics of TN, PLLC's Chapter 11 plan will be held Sept. 13, 2016, at 9 a.m. at the U.S. Bankruptcy Court for Middle District of Tennessee, Courtroom 3, Second Floor, Customs House, 701 Broadway, Nashville, Tennessee 37203. Sept. 9 is fixed as the last day for filing and serving in accordance with Fed. R. Bankr. P. 3017(a) written objections to the Disclosure Statement. Attorneys for Apex Endodontics of TN, PLLC: Griffin S. Dunham, Esq. Alex Payne, Esq. DUNHAM HILDEBRAND, PLLC 2510 Franklin Pike, Suite 210 Nashville, TN 37204 Tel: 615.933.5850 E-mail: griffin@dhnashville.com alex@dhnashville.com About Apex Endodontics of TN, PLLC Apex Endodontics of TN, PLLC, sought protection under Chapter 11 (Bankr. M.D. Tenn. Case No. 16-01708) on March 10, 2016. The petition was signed by Graham Locke, DDS, member. The Debtor is represented by Griffin S. Dunham, Esq., at Dunham Hildebrand, PLLC. The case is assigned to Judge Marian F. Harrison. The Debtor estimated assets of $500,000 to $1 million and debts of $1 million to $10 million at the time of the filing. ARNOLD HANSEN: General Unsecured Creditors to Get 100% of Claims ---------------------------------------------------------------- General unsecured creditors of Arnold Hansen, a realtor, will be paid in full under his proposed plan to exit Chapter 11 protection. Under the restructuring plan, general unsecured creditors will receive 100% of their Class 5 claims, with 0.12% interest. These creditors will receive a one-time payment on or before April 30, 2019. The payment will be made from proceeds derived from the sale of the Debtor's rental property, inherited home, 4.05 acres and other real property, according to his disclosure statement filed with the U.S. Bankruptcy Court for the Western District of Washington. A copy of the disclosure statement is available for free at https://is.gd/VzbkCJ The Debtor is represented by: Jennifer L. Neeleman, Esq. Neeleman Law Group 1904 Wetmore Ave., Suite 200 Everett, WA 98201 Phone: 425-212-4800 About Arnold Hansen Arnold C. Hansen, a realtor, sought protection under Chapter 11 of the Bankruptcy Code (Bankr. W. D. Wash. Case No. 15-14368). The Debtor is represented by Jennifer L. Neeleman, Esq., at Neeleman Law Group. ASHLEY I LLC: Exit Plan To Pay General Unsecured Creditors in Full ------------------------------------------------------------------ Ashley I, LLC, filed with the U.S. Bankruptcy Court for the District of South Carolina its proposed plan to exit Chapter 11 protection. Under the restructuring plan, Class 6 general unsecured claims of Ashley's trade vendors will be paid in full, without interest, within 90 days after the effective date of the plan. The total amount of claims being paid in Class 6 is $16,271. Post-petition amounts due to trade vendors are not included in Class 6. These amounts will be paid in full as administrative priority claims, according to the disclosure statement explaining the plan. A copy of the disclosure statement is available for free at https://is.gd/ZHqPon Ashley's bankruptcy case is jointly administered with the case of Ashley II of Charleston, LLC, which filed a separate Chapter 11 plan of reorganization. Under Ashley II's proposed plan, trade vendors holding general unsecured claims will receive full payment, without interest, within 90 days after the effective date of the plan. The total payment to all Class 7 creditors is $121,311. Post-petition amounts due to trade vendors are not included in Class 7 and will be paid in full as administrative priority claims, according to Ashley II's disclosure statement, a copy of which is available for free at https://is.gd/1DGwjP About Ashley I Ashley I, LLC, and Ashley II of Charleston, LLC, sought protection under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the District of South Carolina (Charleston) (Lead Case No. 16-00559) on Feb. 8, 2016. The petitions were signed by Prodel, LLC manager. The Debtors are represented by G. William McCarthy, Jr., Esq., William Harrison Penn, Esq., and Daniel J. Reynolds, Jr., Esq., at McCarthy, Reynolds & Penn, LLC. At the time of the filing, Ashley I disclosed total assets of $5.17 million and total debts of $18.71 million. 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 Ashley II of Charleston, LLC. ASHLEY II: Files Reorganization Plan to Exit Chapter 11 ------------------------------------------------------- Ashley II of Charleston, LLC, filed with the U.S. Bankruptcy Court for the District of South Carolina a proposed plan under which trade vendors holding general unsecured claims will receive full payment, without interest, within 90 days after the effective date of the plan. The total payment to all Class 7 creditors is $121,311. Post-petition amounts due to trade vendors are not included in Class 7 and will be paid in full as administrative priority claims, according to Ashley II's disclosure statement, a copy of which is available for free at https://is.gd/1DGwjP Ashley II's bankruptcy case is jointly administered with the case of Ashley I, LLC, which filed a separate Chapter 11 plan of reorganization. Under Ashley I's proposed plan, Class 6 general unsecured claims of Ashley's trade vendors will be paid in full, without interest, within 90 days after the effective date of the plan. The total amount of claims being paid in Class 6 is $16,271. Post-petition amounts due to trade vendors are not included in Class 6. These amounts will be paid in full as administrative priority claims, according to the disclosure statement explaining the plan. A copy of Ashley I's disclosure statement is available for free at https://is.gd/ZHqPon About Ashley I and Ashley II Ashley I, LLC, and Ashley II of Charleston, LLC, sought protection under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the District of South Carolina (Charleston) (Lead Case No. 16-00559) on Feb. 8, 2016. The petitions were signed by Prodel, LLC manager. The Debtors are represented by G. William McCarthy, Jr., Esq., William Harrison Penn, Esq., and Daniel J. Reynolds, Jr., Esq., at McCarthy, Reynolds & Penn, LLC. At the time of the filing, Ashley I disclosed total assets of $5.17 million and total debts of $18.71 million. 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 Ashley II of Charleston, LLC. ASPEN GROUP: Files Copy of Presentation Materials with SEC ---------------------------------------------------------- Aspen Group, Inc., has prepared a presentation for members of the investment community which discloses updated information about the Company. The presentation materials are available for free at: https://is.gd/YzBgc8 About Aspen Group Denver, Colo.-based Aspen Group, Inc., was founded in Colorado in 1987 as the International School of Information Management. On Sept. 30, 2004, it was acquired by Higher Education Management Group, Inc., and changed its name to Aspen University Inc. On May 13, 2011, the Company formed in Colorado a subsidiary, Aspen University Marketing, LLC, which is currently inactive. On March 13, 2012, the Company was recapitalized in a reverse merger. Aspen's mission is to become an institution of choice for adult learners by offering cost-effective, comprehensive, and relevant online education. Approximately 88 percent of the Company's degree-seeking students (as of June 30, 2012) were enrolled in graduate degree programs (Master or Doctorate degree program). Since 1993, the Company has been nationally accredited by the Distance Education and Training Council, a national accrediting agency recognized by the U.S. Department of Education. Aspen Group reported a net loss of $2.24 million on $8.45 million of revenues for the year ended April 30, 2016, compared to a net loss of $4.26 million on $5.22 million of revenues for the year ended April 30, 2015. As of April 30, 2016, Aspen had $4.50 million in total assets, $2.69 million in total liabilities and $1.81 million in total stockholders' equity. BALTIMORE GRILL: Trustee Taps Fitzpatrick as Accountant ------------------------------------------------------- The Chapter 11 trustee of Baltimore Grill, Inc. seeks approval from the U.S. Bankruptcy Court for the District of New Jersey to hire Fitzpatrick, Bongiovanni & Kelly. The firm will provide these accounting services to the trustee in connection with the Debtor's Chapter 11 case: (a) review of the tax obligations of the Debtor and its estate; (b) preparation of tax returns for the estate as required; (c) analysis of the claims asserted by secured creditors and others; (d) attendance at meetings pursuant to the trustee's request; and (e) performance of other duties to assist the trustee in the administration of the case, including the preparation of reports as required by the U.S. trustee. The firm's professionals and their hourly rates are: Thomas Aromando, CPA $200 Paula Rowe $75 Bookkeeper $75 Mr. Aromando disclosed in a court filing that the firm is "disinterested" as defined in section 101(14) of the Bankruptcy Code. Fitzpatrick can be reached through: Thomas J. Aromando Fitzpatrick, Bongiovanni & Kelly 401 New Road, Suite 102 Linwood, NJ 08221 About Baltimore Grill Baltimore Grill, Inc., aka Tony's Baltimore Grill, based in Atlantic City, N.J., filed a Chapter 11 petition (Bankr. D. N.J. Case No. 16-10816) on January 18, 2016. The Hon. Jerrold N. Poslusny Jr. presides over the case. Ira Deiches, Esq., at Deiches & Ferschmann, served as counsel. In its petition, the Debtor total assets of $1.09 million and total liabilities of $939,063. The petition was signed by Michael A. Tarsitano, director. On May 24, 2016, the Court granted the request of the U.S. Trustee to appoint a Chapter 11 trustee. Subsequently, Catherine E. Youngman was named as the Chapter 11 Trustee. The Court denied the request of the Debtor to hire Michael A. Fusco II, Esq., as Special Counsel/Provisional Director. BASIC ENERGY: Defers $18.4 Million Notes Interest Payment --------------------------------------------------------- Basic Energy Services, Inc., has elected to utilize the 30-day grace period with respect to an $18.4 million interest payment due Aug. 15, 2013, on its 7.75% senior notes due 2019. Under the terms of the terms of the indenture governing the 2019 Notes, the Company has a 30-day grace period after the interest payment date before an event of default would occur on Sept. 14, 2016. Basic believes it is in the best interests of all stakeholders to use the grace period to continue to engage in discussions with its secured and unsecured debtholders regarding strategic alternatives to improve Basic's long-term capital structure. There are no discussions underway that would impair trade vendors, customers, or employees in any regard, and the Company believes that it has ample liquidity at this time to continue efficient and uninterrupted operations in the ordinary course. Roe Patterson, Basic's president and chief executive officer, stated, "We have made the strategic choice to use the grace period while our discussions with Basic's debtholders continue. During these discussions, we anticipate meeting all of our obligations to suppliers, customers, employees, and others, as usual, and we will continue to provide our customers with dependable, high-quality services, which is the hallmark of our Company." About Basic Energy Energy Services, Inc. provides a wide range of well site services in the United States to oil and natural gas drilling and producing companies, including completion and remedial services, fluid services, well servicing and contract drilling. These services are fundamental to establishing and maintaining the flow of oil and natural gas throughout the productive life of a well. The Company's broad range of services enables us to meet multiple needs of its customers at the well site. Basic Energy reported a net loss of $241.74 million in 2015 compared to a net loss of $8.34 million in 2014. As of June 30, 2016, Basic Energy had $1.07 billion in total assets, $1.14 billion in total liabilities, and a $62.4 million total stockholders' deficit. "If we are unable to generate sufficient cash flow or are otherwise unable to obtain the funds required to make principal and interest payments on our indebtedness, or if we otherwise fail to comply with the various covenants in instruments governing any existing or future indebtedness, we could be in default under the terms of such instruments. In the event of a default, the holders of our indebtedness could elect to declare all the funds borrowed under those instruments to be due and payable together with accrued and unpaid interest, secured lenders could foreclose on any of our assets securing their loans and we or one or more of our subsidiaries could be forced into bankruptcy or liquidation. If our indebtedness is accelerated, or we enter into bankruptcy, we may be unable to pay all of our indebtedness in full. Any of the foregoing consequences could restrict our ability to grow our business and cause the value of our common stock to decline," the Company warned in its annual report for the year ended Dec. 31, 2015. * * * The TCR reported on March 14, 2016, that Moody's Investors Service downgraded Basic Energy Services, Inc.'s Corporate Family Rating (CFR) to Caa3 from Caa1, its senior unsecured notes rating to Ca from Caa2, and lowered its Speculative Grade Liquidity Rating to SGL-4 from SGL-3. The outlook remains negative. As reported by the TCR on Aug. 17, 2016, S&P Global Ratings lowered its long-term corporate credit rating on TX-based oilfield services company Basic Energy Services Inc. to 'CC' from 'CCC-'. "The downgrade follows Basic's announcement on Aug. 15, 2016, that it has decided to defer the coupon payment on its senior unsecured notes maturing 2019," said S&P Global Ratings credit analyst Christine Besset. "The payment due date was Aug. 15, 2016, and Basic is using the 30-day grace period provided in the notes' indenture because the company is in the process of restructuring its balance sheet," she added. BION ENVIRONMENTAL: Releases Updated Company Presentation --------------------------------------------------------- On Aug. 15, 2016, Bion Environmental Technologies, Inc. placed an updated "Company Presentation" (dated August 10, 2016) on the Company's website, www.biontech.com. About Bion Environmental Bion Environmental Technologies Inc.'s patented and proprietary technology provides a comprehensive environmental solution to a significant source of pollution in US agriculture, large scale livestock facilities known as Confined Animal Feeding Operations. Bion's technology produces substantial reductions of nutrient releases (primarily nitrogen and phosphorus) to both water and air (including ammonia, which is subsequently re-deposited to the ground) from livestock waste streams based upon the Company's operations and research to date (and third party peer review). Bion Environmental reported a net loss of $5.6 million on $3,658 of revenue for the year ended June 30, 2015, compared to a net loss of $5.8 million on $5,931 of revenue for the year ended June 30, 2014. As of March 31, 2016, Bion had $1.87 million in total assets, $14 million in total liabilities and a total deficit of $12.12 million. GHP Horwath, P.C., in Denver, Colorado, issued a "going concern" qualification on the consolidated financial statements for the year ended June 30, 2015, citing that the Company has not generated significant revenue and has suffered recurring losses from operations. These factors raise substantial doubt about its ability to continue as a going concern. BOISE CASCADE: S&P Affirms BB- Rating on Senior Unsecured Notes --------------------------------------------------------------- S&P Global Ratings said that it revised its recovery rating on Boise, Idaho-based wood manufacturer Boise Cascade Co.'s senior unsecured notes to '4' from '3'. The '4' recovery rating indicates average (30% to 50%; at the higher end of the range) recovery in the event of a payment default. The corporate credit rating, issue-level rating, and stable rating outlook on the company are unchanged. On Aug. 16, 2016, S&P rated Boise Cascade's debt with the expectation that the company would issue $300 million of senior unsecured notes. The company revised the transaction and issued $350 million. The additional $50 million of debt issuance affects the recovery prospects of senior unsecured note holders. RECOVERY ANALYSIS Key analytical factors -- Since S&P's last published recovery analysis, it has revised the reorganization value of the company to $525 million. The increase in valuation reflects generally improved operating conditions and recent acquisitions. The increase in valuation is somewhat offset by the $75 million term loan the company issued in March 2016. The term loan is a senior claim to the rated unsecured notes and decreases the amount available to senior unsecured note holders. The issue-level rating on the company's senior unsecured notes remains 'BB-' (same as the corporate credit rating). S&P revised the recovery rating on the unsecured notes to '4' from '3.' The '4' recovery rating indicates S&P's expectation of average (30% to 50%, higher end of range) recovery in the event of payment default. -- S&P's simulated default scenario contemplates a default stemming from a steep decline in home construction activity and demand for Boise Cascade's wood products, along with more intense competition. S&P assumes that, over time, these conditions would strain the company's available liquidity, as it would have to fund operating losses and debt service with cash on hand and credit facility borrowings. Against this backdrop, the company would reach a point in 2020 where it would have to file Chapter 11. Simulated default assumptions -- Year of default: 2020 -- EBITDA at emergence: $105 million -- Implied enterprise value (EV) multiple: 5 -- Gross EV: $525 million Simplified waterfall: -- Estimated stressed valuation (after 5% administrative costs): $499 million -- Priority claims: $339 million* -- Remaining value to cover senior secured claims: $160 million -- Estimated senior secured claims: $359 million* -- Recovery expectations: 45% -- Senior unsecured notes recovery rating: '4' (30% to 50%; at the higher end of the range) *Includes six months of accrued but unpaid interest. Ratings List Boise Cascade Co. Corporate Credit Rating BB-/Stable Rating Affirmed; Recovery Rating Revised To From Boise Cascade Co. Senior Unsecured BB- BB- Recovery Rating 4H 3H BOOK REVIEW: Competition, Regulation, and Rationing --------------------------------------------------- Author: Greenberg, Warren Publisher: Beard Group Paperback: 188 pages List Price: $34.95 Review by: Gail Hoelscher Order a personal copy today at http://is.gd/3sdhDD This book is fundamental reading for those involved directly in health care as well as those interested and concerned about the past, present and future of the health care industry in the United States. Originally published in 1990, Warren Greenberg examined the U.S. health care sector over the period 1960-1988 using standard industrial organization economic analysis. He looked at regulation and competition, antitrust elements, technology, and rationing, as well as pricing behavior and advertising. Although some experts claimed the health care industry to be unique and outside the purview of such analysis, Dr. Greenberg demonstrated that all industries differ in their own ways, but nonetheless can be analyzed using these techniques. Dr. Greenberg's first goal in writing this book was to educate the layperson about the economics of the health care industry. Economists have pointed out two major potential differences between health care and other sectors of the economy: uncertainty of demand and imperfect and imbalanced information on the part of providers and consumers. Dr. Greenberg agrees with the first and less so with the second. Obviously, the timing, extent and length of future illness and the demand for medical services are impossible to know. A good deal of the consumer's uncertainty is smoothed over by health insurance. The uncertainty for insurance companies in the sector is somewhat different than that for other industries: while consumers commonly seek more health care than they would if they were not covered, it is rare for someone to burn down his own home just to collect the insurance. With regard to the imbalance in information, physicians do indeed know more about a particular illness and treatment than the average potential patient, but Dr. Greenberg asks how that differs from plumbing, law and accounting! Dr. Greenberg identified and described the industries that make up the health care sector: medical services, hospitals, insurance, and long-term care. He explored market failures and imperfections in each and detailed some of the measures government has taken to correct these imperfections. For example, he described the efforts of the federal government to force competition in the medical services field and how barriers to entry imposed by physicians' lobbies to limit the number of physicians in practice were lifted, physicians were permitted to advertise, and restrictions on the services of nonphysicians were eased. He recounted efforts to require hospitals to disclose information on mortality rates, infections, and medical complications. Dr. Greenberg's second goal in writing the book was to consider policy options. Although he claims skepticism of regulation (after working for the federal government), he believes that ongoing efforts to devise a more efficient and equitable health care system will require more competition, regulation, and rationing. He examined the Canadian, British and Dutch systems, so fascinating and different from ours, and found the Dutch system the least regulatory and most equitable. This book is a primer on the health care industry. Dr. Greenberg explains economic terms in a straightforward and clear way without condescension and takes the reader way beyond Economics 101. Although the sector has changed significantly since this book was published, Dr. Greenberg's analysis of the past offers valuable insight into why our system evolved the way it did and what direction it might take in future. BREMAR DEVELOPMENT: Case Summary & 8 Unsecured Creditors -------------------------------------------------------- Debtor: Bremar Development Corporation fdba Palmetto Plaza 2150 West 76 Street, Unit 100 Hialeah, FL 33016 Case No.: 16-21328 Nature of Business: Single Asset Real Estate Chapter 11 Petition Date: August 17, 2016 Court: United States Bankruptcy Court Southern District of Florida (Miami) Judge: Hon. Laurel M Isicoff Debtor's Counsel: Kristopher E Pearson, Esq. STEARNS WEAVER MILLER WEISSLER ALHADEFF & SITTERSON, P.A. 150 W Flagler St # 2200 Miami, FL 33130 Tel: (305) 789-3259 Fax: (305) 789-2624 E-mail: kpearson@stearnsweaver.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Jorge D. Marrero, sole managing member. A copy of the Debtor's list of eight unsecured creditors is available for free at http://bankrupt.com/misc/flsb16-21328.pdf BULOVA TECHNOLOGIES: Delays Filing of June 30 Quarterly Report -------------------------------------------------------------- Bulova Technologies Group, Inc., filed a Form 12b-25 with the Securities and Exchange Commission notifying a delay in the filing of its quarterly report on Form 10-Q for the period ended June 30, 2016. "The compilation, dissemination and review of the information required to be presented in the Form 10-Q for the quarter ending June 30, 2016 could not be completed and filed by August 15, 2016, without undue hardship and expense to the registrant. The registrant anticipates that it will file its Form 10-Q for the quarter ended June 30, 2016 within the "grace" period provided by Securities Exchange Act Rule 12b-25. About Bulova Bulova Technologies Group, Inc. was originally incorporated in Wyoming in 1979 as "Tyrex Oil Company". During 2007, the Company divested itself of all assets and previous operations. During 2008, the Company filed for domestication to the State of Florida, and changed its name to Bulova Technologies Group, Inc. and changed its fiscal year from June 30 to September 30. Bulova reported a net loss of $5.26 million for the year ended Sept. 30, 2015, compared to a net loss of $3.76 million for the year ended Sept. 30, 2014. As of March 31, 2016, Bulova had $19.13 million in total assets, $41.64 million in total liabilities and a total shareholders' deficit of $22.51 million. BURCON NUTRASCIENCE: Incurs C$1.6-Mil. Net Loss in First Quarter ---------------------------------------------------------------- Burcon NutraScience Corporation reported a net loss and comprehensive loss of C$1.57 million on C$31,106 of revenue for the three months ended June 30, 2016, compared to a net loss and comprehensive loss of C$1.75 million on C$25,689 of revenue for the three months ended June 30, 2015. As of June 30,2016, Burcon had C$5.12 million in total assets, C$2.45 million in total liabilities and C$2.67 million in shareholders' equity. As at June 30, 2016, the Company had minimal revenues from its technology and had an accumulated deficit of $79,128,944 (March 31, 2016 - $77,550,164). During the three months ended June 30, 2016, the Company incurred a loss of $1,578,780 (2015 - $1,751,712) and had negative cash flow from operations of $1,311,538 (2015 - $1,373,863). The Company has relied on equity financings, private placements, rights offerings, other equity transactions and issuance of convertible debt to provide the financing necessary to undertake its research and development activities. As at June 30, 2016, the Company had cash and cash equivalents of $2,947,025 (March 31, 2016 - $2,479,862). These conditions indicate existence of a material uncertainty that casts substantial doubt about the ability of the Company to meet its obligations as they become due and, accordingly, its ability to continue as a going concern. The Company's ability to continue as a going concern is dependent upon the Company raising additional capital. On May 12, 2016, the Company completed a convertible note financing for $2,000,000, with net proceeds of approximately $1.9 million. Although the Company expects to receive royalty revenues from its license and production agreement with Archer Daniels Midland Company from the sales of CLARISOY, the amount of royalty revenues cannot be ascertained at this time. Burcon expects the amount of royalty revenues from the sales of CLARISOY will not reach its full potential until such time production is expanded to one or more full-scale commercial facilities. A full-text copy of the Form 6-K Report is available at: https://is.gd/XsXlk3 About Burcon NutraScience Headquartered in Vancouver, Canada, Burcon NutraScience Corporation has developed a portfolio of composition, application, and process patents originating from its core protein extraction and purification technology. The Company's patented processes utilize inexpensive oilseed meals and other plant-based sources for the production of purified plant proteins that exhibit certain nutritional, functional and nutraceutical profiles. Burcon NutraScience reported a net loss of C$6.56 million on C$106,390 of revenue for the year ended March 31, 2016, compared to a net loss of C$6.57 million on C$105,387 of revenue for the year ended March 31, 2015. BURGI CORP: Seeks to Hire Junkermier as Accountant -------------------------------------------------- Burgi Corp. seeks approval from the U.S. Bankruptcy Court for the District of Montana to hire an accountant in connection with its Chapter 11 case. The Debtor proposes to hire Junkermier, Clark, Campanella, Stevens, PC to prepare its monthly reports, financial statements and tax returns. The firm's professionals and their hourly rates are: Gregory Peck, CPA $245 Sallie Brown, CPA $245 Kris Fuehrer, CPA $245 Teresa Moser, CPA $185 Randy Nelson (Tax Rate) $125 Randy Nelson (Mgt. Info Accountant) $85 Erin Vukelich, (Tax Rate) $125 Erin Vukelich, (Mgt. Info Accountant) $105 Simone Luttrell (Enrolled Agent) $195 Jake Carter, CPA $160 Jake Carter (Accounting Rate) $90 Gregory Peck, manager of the Flathead Branch of Junkermier, disclosed in a court filing that the firm is a "disinterested person" as defined in section 101(14) of the Bankruptcy Code. Junkermier can be reached through: Gregory Peck Junkermier Clark Campanella Stevens PC 307 Spokane Ave P.O. Box 1398 Whitefish, MT 59937 Tel: (406)862-2597 Fax: (406)862-5947 About Burgi Corp. Burgi Corp., based in Columbia Falls, MT, filed a Chapter 11 petition (Bankr. D. Mont. Case No. 16-60771) on July 28, 2016. The Hon. Ralph B. Kirscher presides over the case. Maggie W. Stein, Esq., at Goodrich & Reely, PLLC, as bankruptcy counsel. In its petition, the Debtor estimated $532,282 in assets and $1.08 million in liabilities. The petition was signed by Robert Burgi, president. CAMERON PARK: Must Pay Redding Bank $907 for Cash Use ----------------------------------------------------- Judge Hannah Blumenstiel the U.S. Bankruptcy Court for the Northern District of California inks her approval to the Stipulation of Cameron Park Plaza, LP for the use of cash collateral with Redding Bank of Commerce conditioned on the Debtor paying to Redding Bank of Commerce $907 not later than August 9, 2016. As reported earlier by the Troubled Company Reporter, the Debtor asked the Court to approve its Stipulation with Redding Bank of Commerce, which Stipulation authorizes the Debtor to utilize the rents and profits of the Real Property, and the proceeds thereof, to pay customary and normal operating expenses in the ordinary course, and to pay quarterly fees to the U.S. Trustee. The authorization to use cash collateral will be from June 1, 2016 through August 31, 2016. The Stipulation requires the Debtor to tender to Redding Bank of Commerce all rents and profits of the Real Property, less actual customary and normal operating expenses of the Real Property, as adequate protection. A full-text copy of the Final Cash Collateral Order dated August 8, 2016 is available at https://is.gd/PUJhaL Attorneys for Cameron Park Plaza, LP Michael Fallon, Esq. Michael Fallon, Jr., Esq. FALLON & FALLON 100 E Street, Suite 219 Santa Rosa, California 95404 Telephone: (707) 546-6770 About Cameron Park Plaza, LP Cameron Park Plaza, LP filed a chapter 11 petition (Bankr. N.D. Cal. Case No. 16-30540) on May 17, 2016. The petition was signed by David Monetta, general partner. The Debtor is represented by Michael C. Fallon, Esq., at the Law Offices of Michael C. Fallon. The case is assigned to Judge Hannah L. Blumenstiel. The Debtor disclosed total assets of $8.22 million and total debts of $4.20 million. CASPIAN SERVICES: Incurs $423,000 Net Loss in Third Quarter ----------------------------------------------------------- Caspian Services, Inc., filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss attributable to the Company of $423,000 on $5.01 million of total revenues for the three months ended June 30, 2016, compared to a net loss attributable to the Company of $3.48 million on $3.26 million of total revenues for the same period during the prior year. For the nine months ended June 30, 2016, the Company reported a net loss attributable to the Company of $16.15 million on $11.12 million of total revenues compared to a net loss attributable to the Company of $11.82 million on $12.03 million of total revenues for the nine months ended June 30, 2015. As of June 30, 2016, Caspian had $34.9 million in total assets, $117 million in total liabilities, all current, and a total deficit of $82.13 million. At June 30, 2016, the Company had cash on hand of $1.23 million compared to cash on hand of $1.37 million at Sept. 30, 2015. At June 30, 2016, total current liabilities exceeded total current assets by $106 million. This was mainly attributable to the Balykshi and MOBY Loans, the put option and the Investor's Notes being classified as current liabilities. "Our ability to continue as a going concern is dependent upon, among other things, our ability to (i) successfully restructure our financial obligations to EBRD and Investor, (ii) increase our revenues and improve our operating results to a level that will allow us to service our financial obligations, and/or (iii) attract other significant sources of funding, and (iv) a return to higher world oil prices. Uncertainty as to the outcome of each of these events raises substantial doubt about our ability to continue as a going concern," the Company said. The Company's quarterly report on Form 10-Q is available from the SEC website at https://is.gd/mBrGSU 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. CATASYS INC: Touts Rapid Rollout of OnTrak Solution --------------------------------------------------- Catasys, Inc., reported financial results for the second quarter ended June 30, 2016. "In the second quarter, we continued to rapidly rollout our OnTrak solution, which is now available in 18 states. Looking ahead, enrollment in our OnTrak program and related revenue are expected to continue to increase throughout the second half of 2016, as contracts with new health plans are added and existing customers continue to expand. These new agreements are expected to increase the number of equivalent lives under contract, the leading indicator of our future revenue," said Rick Anderson, president and COO of Catasys. "Care coaches and enrollment specialists are being added in advance of these anticipated new customer launches and existing customer expansions. At a minimum it is approximately a six-week period before the new hires are operational and efficiently delivering our solution to members. As the total cost of care coaches and outreach specialists are reflected in cost of services, this implementation period negatively impacts our gross margins ahead of the expected ramping of enrollment over the coming quarters. This is an exciting period for the Company, as we look to continue to expand our customer base and enrollment," concluded Anderson. The Company reported a net loss of $4.72 million on $1.22 million of revenues for the three months ended June 30, 2016, compared to a net loss of $587,000 on $472,000 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 $9.01 million on $1.95 million of revenues compared to a net loss of $847,000 on $905,000 of revenues for the six months ended June 30, 2015. As of June 30, 2016, Catasys had $2.06 million in total assets, $19.45 million in total liabilities and a total stockholders' deficit of $17.38 million. A full-text copy of the press release is available for free at: https://is.gd/QtAGEC About Catasys Inc. Based in Los Angeles, California, Hythiam, Inc., n/k/a Catasys, Inc., is a healthcare services management company, providing through its Catasys(R) subsidiary specialized behavioral health management services for substance abuse to health plans. Catasys reported a net loss of $7.22 million on $2.70 million of revenues for the year ended Dec. 31, 2015, compared to a net loss of $27.3 million on $2.03 million of revenues for the year ended Dec. 31, 2014. Rose, Snyder & Jacobs LLP, in Encino, California, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2015, citing that the Company has continued to incur significant operating losses and negative cash flows from operations during the year ended Dec. 31, 2015, and continues to have negative working capital at Dec. 31, 2015. These conditions raise substantial doubt about the Company's ability to continue as a going concern. CHESTLIN LLC: Seeks to Hire Desai Eggmann as Legal Counsel ---------------------------------------------------------- Chestlin LLC seeks approval from the U.S. Bankruptcy Court for the Eastern District of Missouri to hire Desai Eggmann Mason LLC as its legal counsel. The firm will provide these services in connection with the Debtor's Chapter 11 case: (a) advising the Debtor with respect to its rights, power and duties in the case; (b) assisting and advising the Debtor in its consultations with any appointed committee relative to the administration of the case; (c) assisting the Debtor in analyzing the claims of creditors and negotiating with such creditors; (d) assisting the Debtor in the investigation of its assets, liabilities and financial condition; (e) advising the Debtor in connection with the sale of assets or business; (f) assisting the Debtor in its analysis of and negotiation with any appointed committee or any third party concerning matters related to, among other things, the terms of a plan of reorganization; (g) assisting and advising the Debtor with respect to any communications with the general creditor body regarding significant matters in the case; (h) commencing and prosecuting actions on behalf of the Debtor; (i) reviewing, analyzing or preparing legal papers; (j) representing the Debtor at all hearings and other proceedings; (k) conferring with other professional advisors retained by the Debtor; and (l) assisting and advising the Debtor regarding pending arbitration and litigation matters in which it may be involved. The firm's hourly rates for its services range from $75 to $375. Robert Eggmann, Esq., disclosed in a court filing that the firm is a "disinterested person" as defined in section 101(14) of the Bankruptcy Code. Desai can be reached through: Robert E. Eggmann, Esq. Thomas H. Riske, Esq. Desai Eggmann Mason LLC 7733 Forsyth Blvd., Suite 800 St. Louis, MO 63105 Phone: (314) 881-0800 Fax: (314) 881-0820 Email: reggmann@demlawllc.com triske@demlawllc.com About Chestlin LLC Chestlin LLC sought protection under Chapter 11 of the Bankruptcy Code (Bankr. E.D. Mo. Case No. 16-45698) on August 11, 2016. The case is assigned to Judge Charles E. Rendlen III. CHINA BAK: Delays Filing of June 30 Form 10-Q --------------------------------------------- China Bak Battery, Inc., filed a Form 12b-25 with the U.S. Securities and Exchange Commission notifying the delay in the filing of its quarterly report on Form 10-Q for the period ended June 30, 2016. "The registrant has not finalized its financial statements for the fiscal quarter ended June 30, 2016. As a result, the registrant is unable to file its Form 10-Q within the prescribed time period without unreasonable effort or expense. The registrant anticipates that it will file the Form 10-Q within the five-day grace period provided by Exchange Act Rule 12b-25," it states. About China BAK China BAK Battery conducted business through BAK International Limited and its subsidiaries that produced prismatic cells, cylindrical cells, lithium polymer cells and high power lithium batters. The BAK International business was foreclosed on June 30, 2014. Consequently, China BAK is looking to develop, manufacture and sell energy high power lithium batteries primarily for electric vehicles when its Dalian, China manufacturing facilities start to operate in the first quarter of 2015. China BAK reported net profit of US$15.87 million for the year ended Sept. 30, 2015, compared to net profit of US$37.77 million for the year ended Sept. 30, 2014. As of March 31, 2016, China BAK had US$67.54 million in total assets, US$49.55 million in total liabilities and US$17.98 million in total shareholders' equity. Crowe Horwath (HK) CPA Limited, in Hong Kong, China, issued a "going concern" qualification on the consolidated financial statements for the year ended Sept. 30, 2015, citing that the Company has a working capital deficiency, accumulated deficit from recurring net losses and significant short-term debt obligations maturing in less than one year as of Sept. 30, 2015. All these factors raise substantial doubt about its ability to continue as a going concern. CHRISTOPHER RIDGEWAY: Disclosure Statement Hearing on Sept. 6 ------------------------------------------------------------- The Hon. Elizabeth W. Magner in New Orleans, Louisiana, will hold a hearing Sept. 6, 2016, at 9:00 a.m. to consider approval of the Disclosure Statement explaining the Chapter 11 Plan of Reorganization of debtor Christopher Martin Ridgeway filed on Aug. 4, 2016. Aug. 30, 2016, is fixed as the last day for filing written objections to the Disclosure Statement. Christopher Martin Ridgeway filed a Chapter 11 bankruptcy petition (Bankr. E.D. La. Case No. 16-10643) on March 23, 2016, and is represented by: Robin B. Cheatham, Esq. Adams & Reese LLP One Shell Square 701 Poydras Street, Suite 4500 New Orleans, LA 70139 Tel: (504) 581-3234 Fax: (504) 566-0210 E-mail: cheathamrb@arlaw.com CIRCUS FURNITURE: Taps Cunningham & Assoc. to Sell Vehicles ----------------------------------------------------------- Circus Furniture, LLC seeks authorization from the U.S. Bankruptcy Court for the District of Arizona to employ Cunningham & Associates, Inc. as auctioneer for the sale of estate vehicles, nunc pro tunc to the October 16, 2015 petition date. The Auctioneer has been instrumental in the sale of the Debtor's Estate Property as part of this ongoing matter. The Auctioneer, after separate application and Order from this Court, will be paid a commission of 10% of the gross sale, plus costs, for the sale of the Property. The Trustee has determined this fee is reasonable and customary. George Cunningham of Cunningham & Associates, assured the Court that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtors and their estates. Cunningham & Associates can be reached at: George Cunningham CUNNINGHAM & ASSOCIATES, INC. 6520 N. 27th Ave. P.O. Box 67087 Phoenix, AZ 85082 Circus Furniture, LLC, filed a Chapter 11 bankruptcy petition (Bankr. D. Ariz. Case No. 15-13290) on October 16, 2015. The Debtor is represented by: Charles R. Hyde, Esq. LAW OFFICES OF C.R. HYDE 325 W. Franklin St., Suite 103 Tucson, AZ 85701 Tel: 520-270-1110 Fax: 520-547-2475 E-mail: crhyde@gmail.com CLASSIC COMMUNITIES: Taps Turn Key as Real Estate Broker -------------------------------------------------------- Classic Communities Corporation seeks authorization from the U.S. Bankruptcy Court for the Middle District of Pennsylvania to employ Turn Key Realty Group as a real estate broker. The Debtor requires Turn Key to sell the various parcels of real estate located throughout Central Pennsylvania, known as: -- 739 Westland Court, Mechanicsburg, Cumberland County; -- 6303 Chatham Glenn Way, Harrisburg, Dauphin County; -- 6229 Autumn View Drive, Linglestown, Dauphin County; -- 5962 Pinedale Court, Harrisburg, Dauphin County; -- 4348 North Victoria Way, Harrisburg, Dauphin County; -- 2023 Liberty Drive, Mechanicsburg, Cumberland County; -- 610 Petersburg Road, Lancaster, Lancaster County; -- 181 Mapleton Drive, Skyline View, Dauphin County; -- 142 Old Schoolhouse Lane, Mechanicsburg, Cumberland County; -- 187 Mapleton Drive, Harrisburg, Dauphin County; -- 176 Mapleton Drive, Harrisburg, Dauphin County; -- 23 Glenn View, Carlisle, Cumberland County; and -- Westwood Hills, 43, 45, 47, 49, 53, 55, 57, 59, 63, 67,69 and 71 Crooked Drive, Enola, Cumberland County. Turn Key will charge a commission of 5% of the sale consideration for any parcel which closes on a sale. All costs and expenses which Turn Key incurs as a result of its services, including advertising, are waived. The Debtor is not required to pay any amount to Turn Key in advance. The Commissions are comparable to the fees charged by Turn Key in comparable non-bankruptcy situations. Edwin Tichenor, a licensed real estate agent with Turn Key, 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. Turn Key can be reached at: Edwin Tichenor TURN KEY REALTY GROUP 3438 Trindle Road Camp Hill, PA 17011 About Classic Communities Corporation Classic Communities Corporation filed a Chapter 11 bankruptcy petition (Bankr. M.D. Pa. Case No. 16-02022) on May 10, 2016. The petition was signed by Douglas Halbert, president. The Debtor estimated assets and liabilities in the range of $10 million and debts of up to $50 million. Judge Mary D. France is the case judge. CLEANFUEL USA: Files Plan and Disclosure Statement -------------------------------------------------- CleanFuel USA, Inc. filed with the U.S. Bankruptcy Court in Austin, Texas, its plan of reorganization and disclosure statement. The Plan provides that Vendor Claims in Class 6 will be paid in the amount as is Allowed, in full, in Cash, commencing on the Effective Date and monthly thereafter, so long as there has been no Material Default by the Reorganized Debtor in treatment of Classes 1 through 5, through 12 equal Monthly Payments, over a period through the first anniversary of the Effective Date. Allowed Unsecured Claims in Class 7 -- which includes the claim of ICOM North America, LLC, if allowed -- will receive, on a Pro Rata basis, Quarterly Plan Payments from the Unsecured Creditor Payment Fund in full satisfaction of their claims, so long as there has been no Material Default by the Reorganized Debtor in treatment of Classes 1 through 6. In addition, holders of Allowed General Unsecured Claims shall receive, on a Pro Rata basis, net recoveries from the prosecution of any Avoidance Actions. ICOM North America, LLC has filed an unsecured claim in an amount alleged to exceed $2,466,250. The Debtor disputes ICOM's claim and intends to object to the claim. The Ed Rachal Foundation asserts a first and prior security interest in all assets of the Debtor, including but not limited to, the Debtor’s inventory, accounts receivable, equipment, intellectual property, general intangibles and the proceeds thereof. The Foundation has filed a proof of claim in the total amount of $16,846,552. The Debtor's assets, including its cash and accounts receivable, serve as collateral for the debt owed to The Ed Rachal Foundation. The Debtor sought and obtained Bankruptcy Court approval on an interim and final basis to use cash collateral pursuant to an approved budget. In addition, the Debtor sought and obtained Bankruptcy Court approval of postpetition financing in the total aggregate amount of $1,450,000.00 provided by The Ed Rachal Foundation pursuant to an approved budget. The Ed Rachal Foundation's Secured Claim is in Class 4. Before and after the Effective Date, the Reorganized Debtor will market and attempt to sell its Dispenser Division. The proceeds of the sale will be utilized to pay Allowed Claims in Classes 4 and 5, and if funds remain, to pay Allowed Claims in Class 7. Any surplus funds remaining, if any, after payment in full of Allowed Claims in Class 7 will be retained by the Reorganized Debtor. A copy of the Disclosure Statement is available at: http://bankrupt.com/misc/txwb16-10398-0118.pdf The Debtor is represented by: Kell C. Mercer, Esq. KELL C. MERCER, P.C. 1602 E. Cesar Chavez Street Austin, TX 78702 Tel: (512) 627-3512 Fax: (512) 597-0767 E-mail: kell.mercer@mercer-law-pc.com About CleanFUEL USA Georgetown, Texas-based CleanFUEL USA, Inc., sought protection under Chapter 11 of the Bankruptcy Code on April 3, 2016 (Bankr. W.D. Tex., Case No. 16-10398). CleanFUEL designs and manufactures alternative fuel equipment for propane auto gas. The case is assigned to Judge Christopher H. Mott. The Debtor is represented by C. Daniel Roberts, Esq., at C. Daniel Roberts & Associates, PC; and Kell C. Mercer, Esq., at Kell C. Mercer, PC, as bankruptcy counsel. Alan D. Albright and the firm of Bracewell LLP serve as the Debtor's special counsel for intellectual property and related litigation matters; and Kevin E. Fincher and the firm of Padgett, Stratemann & Co., LLP, as accountant. CLEVELAND BIOLABS: Incurs $1.88 Million Net loss in Second Quarter ------------------------------------------------------------------ Cleveland Biolabs, Inc., filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $1.88 million on $575,025 of revenues for the three months ended June 30, 2016, compared to a net loss of $4.46 million on $329,908 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 $2.55 million on $1.38 million of revenues compared to a net loss of $8.16 million on $937,237 of revenues for the six months ended June 30, 2015. As of June 30, 2016, Cleveland had $17.96 million in total assets, $4.87 million in total liabilities and $13.09 million in total stockholders' equity. Yakov Kogan, Ph.D., MBA, chief executive officer, stated, "Since our last update in March of this year, CBLI has submitted a proposal to the FDA to address their request for demonstration of in vivo biocomparability between the entolimod drug formulation proposed for use under the pre-EUA and the drug formulation used in previously conducted preclinical and clinical studies. We have subsequently engaged in active discussions with the FDA regarding the proposed study design, in which the FDA has requested side-by-side analytical comparability data before initiating an in vivo biocomparability study. This analytical analysis is currently in progress with an expected completion date in the fourth quarter of 2016 after which the biocomparability study may start. Once we have finalized the biocomparability study design and confirmed timing of the study with our vendors, we will update guidance on this point. Preliminarily, we expect the biocomparability study will require approximately 6 months to complete." "In addition, we are evaluating steps needed to file a Marketing Authorization Application ("MAA") for entolimod as a medical radiation countermeasure with the European Medicines Agency ("EMA"). As a prelude to filing an MAA, the EMA requires an agreement between the agency and the sponsor on a pediatric investigational plan ("PIP"), which recently has been filed with the EMA. We cannot currently estimate when an agreement on the PIP will be reached or if any additional studies will be required for an MAA submission." "Clinical oncology studies with entolimod, CBLB612 and Mobilan are progressing in the Russian Federation," added Dr. Kogan. "The Phase 2 study of entolimod as a neo-adjuvant therapy in treatment-naïve patients with primary colorectal cancer has recruited 35 patients to date. Recruitment was completed in a Phase 2 study of CBLB612 as myelosuppressive prophylaxis in patients with breast cancer receiving doxorubicin-cyclophosphamide chemotherapy. The database for this study is being prepared for analysis. And finally, Panacela Labs continues dosing in a Phase 1 study with Mobilan evaluating single injections administered directly into the prostate of patients with prostate cancer. All of these studies are supported by development contracts with the Russian Federation Ministry of Industry and Trade, or MPT." Liquidity and Capital Resources "We have incurred net losses of approximately $150.6 million from our inception through June 30, 2016. Historically, we have not generated, and do not expect to generate in the immediate future, revenue from sales of product candidates. Since our founding in 2003, we have funded our operations through a variety of means: * From inception through June 30, 2016, we have raised $144.7 million of net equity capital, including amounts received from the exercise of options and warrants. We have also received $7.3 million in net proceeds from the issuance of long-term debt instruments; * DoD and BARDA have funded grants and contracts totaling $60.4 million for the development of entolimod for its biodefense indication; * The Russian Federation has funded a series of our contracts totaling $17.3 million, based on the exchange rates in effect on the date of funding. These contracts include a requirement for us to contribute matching funds, which we have satisfied or expect to satisfy with both the value of developed intellectual property at the time of award, incurred development expenses and future expenses; * We have been awarded $4.0 million in grants and contracts not described above, all of which have been recognized at June 30, 2016; * Incuron was formed to develop and commercialize the Curaxins product line, including its lead oncology drug candidate CBL0137. In 2015, we sold our ownership interest for approximately $4.0 million and retain a 2% royalty interest in the CBL0137 technology; and * Panacela was formed to develop and commercialize preclinical compounds, which were transferred to Panacela through assignment and lease agreements. RUSNAO contributed $9.0 million to Panacela and CBLI contributed $3.0 million plus intellectual property to Panacela. As of the date of this filing, CBLI owns 67.57% of Panacela. "We have incurred cumulative net losses and expect to incur additional losses related to our R&D activities. We do not have commercial products and have limited capital resources. At June 30, 2016, we had cash, cash equivalents and short-term investments of $16.4 million which, along with the active government contracts described above, are expected to fund our projected operating requirements beyond one year. However, until we are able to commercialize our product candidates at a level that covers our cash expenses, we will need to raise substantial additional capital, which we may be unable to raise in sufficient amounts, when needed and at acceptable terms. Our plans with regard to these matters may include seeking additional capital through debt or equity financing, the sale or license of drug candidates, or obtaining additional research funding from the U.S. or Russian governments. There can be no assurance that we will be able to obtain future financing on acceptable terms, or that we can obtain additional government financing for our operations. If we are unable to raise adequate capital and/or achieve profitable operations, future operations might need to be scaled back or discontinued. The financial statements do not include any adjustments relating to the recoverability of the carrying amount of recorded assets and liabilities that might result from the outcome of these uncertainties." The Company's quarterly report on Form 10-Q is available from the SEC website at https://is.gd/dbWKUb About Cleveland BioLabs Cleveland BioLabs, Inc. (NASDAQ: CBLI) is a biopharmaceutical company developing novel approaches to activate the immune system and address serious unmet medical needs. The Buffalo, New York-based company's proprietary platform of toll-like immune receptor activators has applications in radiation mitigation, oncology immunotherapy and vaccines. Cleveland reported a net loss of $13.04 million on $2.70 million of grants and contracts revenues for the year ended Dec. 31, 2015, compared to net income of $35,366 on $3.70 million of grants and contracts revenues for the year ended Dec. 31, 2014. CORWIN PLACE: Hires Jacks Legal Group as Co-counsel --------------------------------------------------- Corwin Place, LLC seeks authorization from the U.S. Bankruptcy Court for the Northern District of West Virginia to employ Michael Jacks of Jacks Legal Group, PLLC as co-counsel for the Debtor and local counsel for David Fuchs, Esq. The Debtor is in need of legal counsel to assist in, among other things: -- the administration of its Estate and to represent the Debtor on matters involving legal issues that are present or are likely to arise in the case; -- the preparation of any legal documentation on behalf of the Debtor; -- the review of reports for legal sufficiency; -- furnishing information on legal matters regarding legal actions and consequences and for all necessary legal services connected with Chapter 11 proceedings including the prosecution and/or defense of any adversary proceedings. The Debtor wishes to retain Mr. Jacks at the rate of $150 per hour. Mr. Jacks will also be reimbursed for reasonable out-of-pocket expenses incurred. Michael Jacks 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. Michael Jacks can be reached at: Michael A. Jacks, Esq. JACKS LEGAL GROUP, PLLC United Federal Credit Union Building 3467 University Ave, Suite 200 Morgantown, WV 26505 Tel: (304) 599-4770 Fax: (304) 278-3187 E-mail: mike@jackslegal.com About Corwin Place Corwin Place LLC sought protection under Chapter 11 of the Bankruptcy Code (Bankr. W.D. Pa. Case No. 16-21861) on May 16, 2016. CRYOPORT INC: Secures 28 New Clients, 34% Growth in Fiscal Q1 ------------------------------------------------------------- Cryoport, Inc. announced financial results for the three-month period ended June 30, 2016. "Cryoport continued to achieve strong financial results for the first quarter of our Fiscal Year 2017, reporting 34% year-over-year revenue growth," stated Mr. Jerrell Shelton, chief executive officer of Cryoport, Inc. "We leveraged FY 2016's momentum to secure additional revenue opportunities from our existing client base and partnered with multiple new clients across each of our three markets - biopharma, reproductive medicine and animal health. We also secured $3.5 million in additional funds to support our growth and development initiatives. "Our continued revenue growth was primarily driven by our expanding base of biopharma clients, of which Cryoport secured 28 new clients in the First Quarter of FY2017. Biopharma continues to account for the largest portion of our total revenues and is our fastest growing market. It is important to note that we have continued our progress in signing new clients with ground-breaking life sciences companies. Working with the world's foremost biopharmaceutical corporations, of course, positions us for further growth and serves to validate our reputation as a best-in-class provider of reliable cold chain logistics solutions. We are pleased with our sales team's demonstrated ability to further strengthen our market position and secure sales. "Cryoport's reputation for dependability is growing rapidly and we are becoming recognized for our innovative cold chain solutions in the life sciences industry. Many companies within our biopharma client base are conducting clinical trials in the fast-growing regenerative medicine space. These companies rely on Cryoport to optimize their entire logistics supply chain in support of their clinical trials and ensuing commercialization activities. The early adoption of our services in this exponential growth area of the biopharma marketplace and the potential for us to scale with our clients as their therapies are approved is extremely encouraging. Our cold chain logistics solutions are currently supporting 23 out of the 28 leading clinical-stage CAR T-Cell programs that are underway and are now supporting more than 90 clinical trials, including 14 phase III projects. In addition, at the end of the First Quarter of FY2017, we signed our first agreement to support the manufacture of a multi-billion dollar commercially launched biopharma product," continued Mr. Shelton. "During the First Quarter, we also continued to expand our presence in reproductive medicine and laid the groundwork for recapturing our growth in the animal health market. The resiliency of U.S. demand for human reproductive services drove solid revenue growth of 10% year over year for the First Quarter in reproductive medicine, despite changes in international regulations in some Asian countries. This growth was driven by focused marketing activities. Our animal health revenue increased 8% sequentially, after experiencing challenges in the second half of FY 2016 due to a manufacturing slowdown by one of our larger clients. "In response to market demand we also rolled out several strategic initiatives during the quarter to accelerate future growth. They included the launch of Cryoport Biostorage, enabling us to provide comprehensive storage and fulfillment services to our clients and our Cryoport Temperature Controlled Logistics Consulting Services to address our clients' cold chain advisory needs. In addition, we introduced the SmartPak II Condition Monitoring System, which provides advanced, real-time condition and location data for monitoring critical biological commodities and enhancing our "Chain of Condition and Chain of Custody" information. These new offerings serve to ensure that we continue to have the most comprehensive, end-to-end services and tools for tailoring client specific cold chain logistics solutions. For Cryoport, "Science. Logistics. Certainty." is not just a tag line; it is a mandate as we work to strengthen Cryoport's position as the "go-to" provider of choice for all cold chain logistics needs in the biopharma, reproductive medicine and animal health markets," concluded Mr. Shelton. For the three months ended June 30, 2016, Cryoport reported a net loss attributable to common stockholders of $3.93 million on $1.91 million of revenues for the three months ended June 30, 2016, compared to a net loss attributable to common stockholders of $6.60 million on $1.43 million of revenues for the three months ended June 30, 2015. As of June 30, 2016, the Company had $7.69 million in total assets, $2.60 million in total liabilities and $5.08 million in total stockholders' equity. A full-text copy of the press release is available for free at: https://is.gd/dn0OKr About Cryoport Lake Forest, Calif.-based CryoPort, Inc. (OTC BB: CYRX) provides comprehensive solutions for frozen cold chain logistics, primarily in the life science industries. Its solutions afford new and reliable alternatives to currently existing products and services utilized for bio-pharmaceuticals and biologics, including in-vitro fertilization, cell lines, vaccines, tissue and other commodities requiring a reliable frozen solution. Cryoport reported a net loss attributable to common stockholders of $15.05 million on $5.88 million of revenues for the year ended March 31, 2016, compared to a net loss attributable to common stockholders of $12.19 million on $3.93 million of revenues for the year ended March 31, 2015. KMJ Corbin & Company LLP, in Costa Mesa, California, issued a "going concern" qualification on the consolidated financial statements for the year ended March 31, 2016, citing that the Company has recurring operating losses from inception and has used substantial amounts of working capital in its operations. Although the Company has cash and cash equivalents of $2.8 million at March 31, 2016, management has estimated that cash on hand will only be sufficient to allow the Company to continue its operations through the third quarter of fiscal 2017. These matters raise substantial doubt about the Company's ability to continue as a going concern. CYRUSONE INC: S&P Raises CCR to 'BB-', Outlook Positive ------------------------------------------------------- S&P Global Ratings raised its corporate credit rating on Carrollton, Texas-based CyrusOne Inc. to 'BB-' from 'B+'. The outlook is positive. At the same time, S&P raised its issue-level rating on the company's unsecured credit facility and senior unsecured notes to 'BB' from 'B+' and revised S&P's recovery rating to '2' from '3'. The '2' recovery rating indicates S&P's expectation for substantial (70%-90%; upper half of the range) recovery for lenders in the event of a payment default. S&P removed all ratings from CreditWatch, where it had placed them with positive implications on July 25, 2016. "The ratings upgrade reflects our increased confidence in the cash flow stability of the business, stemming from the company's improved contract terms, higher revenue backlog, and strong demand for data center services," said S&P Global Ratings credit analyst Rose Askinazi. CyrusOne's contract lengths have increased in recent quarters, resulting in a weighted average remaining lease term of 4.4 years. In addition, the company has incorporated annual price escalators of 1%-3% in half of its portfolio. Strong leasing activity has increased the company's revenue backlog to $96 million, more than double the amount reported on Dec. 31, 2015. These factors provide a greater degree of visibility into the company's future revenue streams. The positive outlook reflects S&P's view that debt to EBITDA could improve below 5x over the next 12 months, which could support a higher rating if the company is able to commit to maintaining debt to EBITDA below this level, including its future plans for expansion. DAKOTA PLAINS: Decline in Oil Price Raises Going Concern Doubt -------------------------------------------------------------- Dakota Plains Holdings, Inc., filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $5.32 million on $1.72 million of total revenues for the three months ended June 30, 2016, compared to a net loss of $549,950 on $8.71 million of total revenues for the same period in 2015. For the six months ended June 30, 2016, the Company listed a net loss of $5.11 million on $5.06 million of total revenues, compared to a net loss of $366,957 on $18.10 million of total revenues for the same period in the prior year. As of June 30, 2016, the Company had $61.62 million in total assets, $93.12 million in total liabilities and a total stockholders' deficit of $31.50 million. As of June 30, 2016, the Company had cash and cash equivalents and trade receivables of approximately $6.7 million and accounts payable and accrued expenses of approximately $11.8 million. In addition, it had $55.4 million aggregate principal amount of promissory notes due within the next twelve months. The Company is focused on increasing the throughput and reducing the expenses at the transloading facility, but the decline in crude oil prices and contraction of the price spread between Brent and WTI has materially reduced the revenues that the Company is able to generate from its transloading operations, which, in turn, has negatively affected the Company's working capital and income (loss) from operations. The potential for future crude oil prices to remain at their current low levels raises substantial doubt about the Company's ability to meet its obligations when they come due and continue as a going concern. A copy of the Form 10-Q is available at http://bit.ly/2b3WHoP Wayzata, Minn.-based Dakota Plains Holdings, Inc., (NYSEMKT: DAKP) is a midstream energy company operating the Pioneer Terminal transloading facility. The Pioneer Terminal is centrally located in Mountrail County, North Dakota, for Bakken and Three Forks development and production activity. DELL INC: Can Use Up to $75K Cash Collateral on Interim Basis ------------------------------------------------------------- Judge William J. Fisher of the U.S. Bankruptcy Court for the District of Minnesota authorized Dell, Inc., d/b/a Quality RV to use cash collateral on an interim basis, through Aug. 24, 2016. The Debtor was allowed to use cash collateral in an amount not to exceed $75,000, for these exclusive purposes: (1) Gross sales commissions in satisfaction of all sales commissions due from the Debtor for sale of vehicles occurring prior to the Petition Date: not to exceed $46,600; (2) Gross employee payroll (excluding any insider employee): not to exceed $13,000; (3) Vehicle repair parts: not to exceed $5,000; (4) Fuel: not to exceed $800; and (5) Motor vehicle taxes, registration taxes, transfer taxes, and title/transfer fees for Debtors’ sale of vehicles on or after the Petition Date: not to exceed $10,000. Secured creditors NextGear Capital, Inc., the First National Bank of Elk River, NorthPoint Commercial Financial, LLC and TCF Inventory Finance, Inc. were each granted replacement liens on all of the Debtor's assets to the extent of the use of cash collateral, with the same priority, dignity and effect as the pre-petition liens held by each Secured Creditor. The Debtor agreed to deposit into a segregated DIP account, established by the Debtor for the exclusive benefit of each Secured Creditor, the gross proceeds of the sale of each vehicle financed by that Secured Creditor. The Debtor has agreed to not sell any Financed Vehicles for a "Total" sale price that is less than the greater of (i) the amount advanced by any of the Secured Creditors to the Debtor for the Debtor to acquire that Financed Vehicle or (ii) the release price of the Financed Vehicle under the agreement with the Secured Creditor. Debtor has also agreed to not sell any Financed Vehicle for consideration that includes, in whole or in part, a vehicle in trade unless the Secured Creditor that financed the Financed Vehicle consents in writing to such sale. Judge Fisher held that to the extent the adequate protection provided proves to be insufficient to protect any Secured Creditors' interest in cash collateral and/or to the extent that any Secured Creditor traces the proceeds of the sale of a Financed Vehicle financed by the Secured Creditor, that Secured Creditor will have a superpriority administrative expense claim senior to any and all claims against the Debtor. A further interim hearing on the Debtor's Cash Collateral Motion is scheduled on Aug. 24, 2016 at 10:00 a.m. A full-text copy of the Order, dated August 12, 2016, is available at https://is.gd/feo21j About Dell, Inc., d/b/a Quality RV Dell, Inc. d/b/a Quality RV filed a chapter 11 petition (Bankr. D. Minn. Case No. 16-42287) on Aug. 1, 2016. The petition was signed by Todd D. Olson, chief executive officer. The Debtor is represented by Steven B. Nosek, Esq., at Steven Nosek, P.A. The case is assigned to Judge William J. Fisher. The Debtor estimated assets at $0 to $50,000 and debts at $1 million to $10 million at the time of the filing. DIFFERENTIAL BRANDS: Incurs $3.60-Mil. Net Loss in Second Quarter ----------------------------------------------------------------- Differential Brands Group Inc. filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $3.60 million on $32.4 million of net sales for the three months ended June 30, 2016, compared to a net loss of $488,000 on $16.3 million of net sales for the three months ended June 30, 2015. For the six months ended June 30, 2016, the Company reported a net loss of $10.08 million on $66.08 million of net sales compared to net income of $69,000 on $35.20 million of net sales for the six months ended June 30, 2015. Michael Buckley, chief executive officer, commented, "We are very pleased that we continued to improve our product offerings across our portfolio of brands during the second quarter, as we worked to implement our new branded platform approach. In our Wholesale segment, we were pleased with the performance of Hudson, which benefitted from operational efficiencies put into place following the closing of the RG Merger. In the Consumer Direct segment, we have worked to remerchandise and revamp our Robert Graham collection in our retail stores, which has resulted in positive sell-throughs and an increase in sales. That said, organic sales results in the quarter were impacted by continued challenges across both our Wholesale and Consumer Direct segments as a result of overall headwinds in the consumer retail environment." Mr. Buckley continued, "As we look ahead, we are focused on growing our business organically and through acquisitions of premium brands that are accretive and complementary to our portfolio. To that end, we recently acquired SWIMS AS, a Scandinavian lifestyle brand known for its range of fashion-forward, water-resistant footwear and sportswear. This marks the first acquisition under the Differential umbrella, and we are very excited to continue expanding our portfolio with brands that consumers are passionate about." As of June 30, 2016, the Company had $156.41 million in total assets, $107.08 million in total liabilities and $49.32 million in total equity. At June 30, 2016, and Dec. 31, 2015, the Company's cash and cash equivalent balances were $8,368,000 and $1,966,000, respectively. "Based on our cash on hand, cash flows from operations, the expected borrowing availability under its existing credit facilities and other financing arrangements, and sales forecasts, we believe that we have the working capital resources necessary to meet our projected operational needs for the next 12 months. However, if we require more capital for growth and integration or if we experience a decline in sales and/or operating losses, we believe that it will be necessary to obtain additional working capital through additional credit arrangements. "We believe that the rate of inflation over the past few years has not had a significant adverse impact on our net sales or income from continuing operations. Significant changes in the rate of inflation in the future may, however, affect certain expenses, including employee compensation, and we may not be able to successfully recover such increased costs from customers," the Company said. The Company's quarterly report on Form 10-Q is available from the SEC website at https://is.gd/CEWYX8 Amends March 31 Form 10-Q Differential Brands filed an amendment to its quarterly report on Form 10-Q for the quarterly period ended March 31, 2016, filed with the SEC on May 16, 2016. The Company restates its previously issued unaudited condensed consolidated financial statements, financial data and related disclosures for the quarterly period ended March 31, 2016 to: (i) reflect the correct accounting for classifying as discontinued operations the Company's former Joe's retail business operations, which were exited in the first quarter of 2016; (ii) correct errors related to the incorrect accrual of dividends on the Company's preferred stock designated as Series A Convertible Preferred Stock; and (iii) correctly calculate earnings per share; (iv) reclassify cash advances received from customers; (v) include disclosures of non-cash information in the Company's statements of cash flows; and (vi) include additional disclosures of accounting policies, earnings per share calculated under the two-class method, pro forma financial information, certain related party transactions, information regarding goodwill and intangible assets and the fair value of financial instruments. As reported in the Company's Current Report on Form 8-K filed with the SEC on Aug. 16, 2016, on Aug. 10, 2016, the board of directors of the Company, in consultation with management concluded that: (i) the Company's previously issued Q1 2016 Financial Statements should no longer be relied upon due to errors identified therein; and (ii) the Q1 2016 Financial Statements required restatement. The errors were identified in the course of preparing the Company's quarterly report on Form 10-Q for the quarterly period ended June 30, 2016, and were as follows: * In the Q1 2016 Financial Statements, the Company reported the operating and cash flows results of 14 of its former Joe's brand retail stores as continuing operations. After the sale by the Company of certain intellectual property and operating assets of its Joe's Business in 2015, the Company retained 32 of its Joe's retail brand stores, transferring 18 on Jan. 28, 2016 and closing the other 14 on Feb. 29, 2016. It was later determined that these 14 stores were required to be reported as discontinued operations pursuant to ASC 205-20, Presentation of Financial Statements—Discontinued Operations. Due to the incorrect classification, the Q1 2016 Financial Statements presented higher operating losses from continuing operations than the Company had actually incurred for the first quarter of fiscal 2016, overstating operating loss by $1.29 million and loss from continuing operations by $0.3 million, accounts payable and accrued expenses by $2.06 million, cost of goods sold by $1.15 million and operating expenses by $1.34 million. The incorrect classification also led to overstatements in net sales of $1.21 million and gross profit of $56,000 and understatements of liabilities from discontinued operations of $892,000, net cash provided by operating activities of $492,000, net cash used in discontinued operating activities of $492,000. * The Company did not properly classify cash advances from customers of $1.68 million as a separate line item in the liabilities section of the unaudited condensed consolidated balance sheet at March 31, 2016. In addition, the Company improperly classified cash inflows of approximately $0.8 million relating to these advances during the three months ended March 31, 2016 as operating cash flows. The correct classification should have been financing cash flows. * The Company did not apply the correct accounting treatment to a dividend payable to holders of its Series A Preferred Stock. This led to an overstatement in other liabilities and accumulated deficit of $863,000. * The Company did not properly calculate its basic and diluted weighted average shares outstanding and loss per common share, resulting in a decrease of 1,041,000 shares in the basic and diluted weighted average shares outstanding and a corresponding increase in basic and diluted loss per share of $0.04. * The Company did not properly include disclosures for supplemental non-cash transactions in its statements of cash flows. * The Company did not properly include disclosures relating to accounting policies, earnings per share under the two-class method, pro forma financial information and the fair value of financial instruments in its notes to the unaudited condensed consolidated financial statements. A full-text copy of the Form 10-Q/A is available for free at: https://is.gd/H3TQcB About Differential Brands Differential Brands Group Inc., formerly Joe's Jeans Inc., is a platform that focuses on branded operating companies in the premium space. The Company's focus is on organically growing its brands through a global, omni-channel distribution strategy while continuing to seek opportunity to acquire accretive, complementary, premium brands. The Company's current brands are Hudson, a designer and marketer of women's and men's premium branded denim apparel, and Robert Graham, a sophisticated, eclectic style to the fashion market as an American-based company with an intention of inspiring a global movement. Joe's Jeans Inc. has completed the merger combining Hudson Jeans and Robert Graham. Additionally, the company has been renamed Differential Brands Group Inc. and will remain publicly listed on NASDAQ under the ticker DFBG. Differential Brands reported a net loss and comprehensive loss of $32.3 million on $80.2 million of net sales for the year ended Nov. 30, 2015, compared to a net loss and comprehensive loss of $27.7 million on $84.2 million of net sales for the year ended Nov. 30, 2014. DIFFUSION PHARMACEUTICALS: Incurs $3.80 Million Net Loss in Q2 -------------------------------------------------------------- Diffusion Pharmaceuticals Inc. filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $3.80 million for the three months ended June 30, 2016, compared to a net loss of $1.33 million for the three months ended June 30, 2015. For the six months ended June 30, 2016, the Company reported a net loss of $10.02 million compared to a net loss of $2.57 million for the six months ended June 30, 2015. David Kalergis, chairman and chief executive officer, stated, "I am very excited about the progress that we have been making in advancing trans sodium crocetinate (TSC). The recently expanded patent estate of TSC demonstrates its broad applicability across multiple hypoxia driven indications impacting human health. In the near term, we plan to continue to expand the clinical development pipeline for TSC to include both glioblastoma (GBM) and pancreatic cancer. Also, we recently welcomed Isaac Blech, an experienced biotechnology entrepreneur and investor, to our Board of Directors as Vice Chairman." The Company's balance sheet at June 30, 2016, showed $19.92 million in total assets, $5.89 million in total liabilities and $14.03 million in total stockholders' equity. "The Company has not generated any revenues from product sales and has funded operations primarily from the proceeds of private placements of its membership units and convertible notes. Substantial additional financing will be required by the Company to continue to fund its research and development activities. No assurance can be given that any such financing will be available when needed or that the Company's research and development efforts will be successful. "The Company regularly explores alternative means of financing its operations and seeks funding through various sources, including public and private securities offerings, collaborative arrangements with third parties and other strategic alliances and business transactions. However, the Company currently does not have any commitments to obtain additional funds and may be unable to obtain sufficient funding in the future on acceptable terms, if at all. If the Company cannot obtain funding in the immediate future, it will need to delay, scale back or eliminate some or all of its research and development programs or enter into collaborations with third parties to: commercialize potential products or technologies that it might otherwise seek to develop or commercialize independently; consider various strategic alternatives, including a merger or sale of the Company; or cease operations. If the Company engages in collaborations, it may receive lower consideration upon commercialization of such products than if it had not entered into such arrangements or if it entered into such arrangements at later stages in the product development process." Corporate Highlights In August 2016, Mr. Isaac Blech joined Diffusion's Board of Directors as vice chairman. With over 35 years of biotech industry expertise, Mr. Blech has founded and served on the boards of a number of companies including Celgene Corporation, Nova Pharmaceutical Corporation, Pathogenesis Corporation, and Genetics Systems Corporation. Among the other boards Mr. Blech currently serves on are Cerecor, Inc., a CNS company, ContraFect Corporation, an infectious disease company, Medgenics, Inc., a biotechnology company, and Edge Therapeutics, Inc., a company that treats life-threatening neurological conditions. In July 2016, the Company's abstract related to medical emergency indications for its lead clinical stage drug candidate TSC has been accepted for presentation at the American College of Emergency Physicians (ACEP) Research Forum being held October 16 – 18, 2016 in Las Vegas. The acceptance of the abstract highlights the potential broad applicability of TSC as a life-saving intervention to reverse hypoxia in many medical emergencies, including hemorrhagic shock, myocardial infarction, and stroke. In June 2016, the Company's U.S. patent application, entitled "Bipolar Trans Carotenoid Salts and Their Uses," was allowed by the United States Patent and Trademark Office. This application, which is expected to issue in the second half of 2016, expands coverage of the therapeutic use TSC and other related compounds to five hypoxia-related conditions including congestive heart failure, chronic renal failure, acute lung injury, chronic obstructive pulmonary disease, and respiratory distress syndrome. The Company's quarterly report on Form 10-Q is available from the SEC website at https://is.gd/lte4IK About Diffusion Pharmaceuticals Diffusion Pharmaceuticals, as surviving entity in its merger with RestorGenex, is a clinical stage biotechnology company focused on extending the life expectancy of cancer patients by improving the effectiveness of current standard-of-care treatments including radiation therapy and chemotherapy. Diffusion is developing its lead drug, trans sodium crocetinate (TSC), for use in the many cancer types in which tumor hypoxia (oxygen deprivation) is known to diminish the effectiveness of current treatments. TSC targets the cancer's hypoxic micro-environment, re-oxygenating treatment-resistant tissue and making the cancer cells more vulnerable to the therapeutic effects of treatments such as radiation therapy and chemotherapy, without the apparent addition of any serious side effects. TSC has potential application in other indications involving hypoxia, such as stroke and neurodegenerative diseases. Diffusion reported a net loss of $23.8 million on $0 of revenues for the year ended Dec. 31, 2015, compared to a net loss of $14.4 million on $0 of revenues for the year ended Dec. 31, 2014. Deloitte & Touche LLP, in Chicago, Illinois, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2015, citing that the Company's recurring losses from operations and its present financial resources raise substantial doubt about its ability to continue as a going concern. DIFFUSION PHARMACEUTICALS: Isaac Blech Named as Director -------------------------------------------------------- The Board of Directors of Diffusion Pharmaceuticals Inc. appointed Isaac Blech as a director of the Company and vice chairman of the Board. The Board has not yet made a determination regarding the committees on which Mr. Blech will serve. Mr. Blech's current roles include serving as vice chairman of the board of directors of Edge Therapeutics, Inc. (NASDAQ: EDGE), a clinical-stage biotechnology company, founder and director of Cerecor, Inc. (NASDAQ: CERC), a CNS company, director of ContraFect Corporation (NASDAQ: CFRX), an infectious disease company, director of Medgenics, Inc. (NYSE: MDGN), a biotechnology company, and vice chairman of InspireMD (NYSE: NSPR), a stent company. He is vice chairman of the boards of directors of Centrexion Corporation, a private company which is developing new modalities of pain control, Regenovation, Inc., a private company developing new ways to regenerate human tissue, X4 Pharmaceuticals, a private cancer immunology company, Sapience Therapeutics, a private oncology company, Aridis Pharmaceuticals, a private company with a product to treat pneumonia, WaveGuide Corporation, a private company developing the world’s smallest NMR machine, SpendSmart Networks, Inc., a private electronic rewards company, and root9B Technologies, a private cyber security company. Over the past 35 years, Mr. Blech has founded and served on the boards of directors of companies which have produced major advances in a broad array of diseases, including the diagnosis of chlamydia, herpes, syphilis and HIV and the treatment of cystic fibrosis, sexual dysfunction, multiple myeloma and brain cancer. Mr. Blech was also previously a member of the board of directors of the Company’s predecessor, RestorGenex Corporation. In connection with his appointment to the Board, Mr. Blech will be granted, on Aug. 31, 2016, a one-time stock option grant to purchase 2,049,070 shares of the Company's common stock, which shares shall vest in equal quarterly installments over 10 years beginning Sept. 30, 2016. Mr. Blech has agreed not to sell any of the shares issuable upon exercise of the Option Grant for a period of five years from the date of his commencement of service. The Option Grant will be in lieu of the long-term incentive compensation and annual retainers otherwise payable to the Company's directors as described in the Company's filings with the Securities and Exchange Commission. About Diffusion Pharmaceuticals Diffusion Pharmaceuticals, as surviving entity in its merger with RestorGenex, is a clinical stage biotechnology company focused on extending the life expectancy of cancer patients by improving the effectiveness of current standard-of-care treatments including radiation therapy and chemotherapy. Diffusion is developing its lead drug, trans sodium crocetinate (TSC), for use in the many cancer types in which tumor hypoxia (oxygen deprivation) is known to diminish the effectiveness of current treatments. TSC targets the cancer's hypoxic micro-environment, re-oxygenating treatment-resistant tissue and making the cancer cells more vulnerable to the therapeutic effects of treatments such as radiation therapy and chemotherapy, without the apparent addition of any serious side effects. TSC has potential application in other indications involving hypoxia, such as stroke and neurodegenerative diseases. Diffusion reported a net loss of $23.8 million on $0 of revenues for the year ended Dec. 31, 2015, compared to a net loss of $14.4 million on $0 of revenues for the year ended Dec. 31, 2014. Deloitte & Touche LLP, in Chicago, Illinois, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2015, citing that the Company's recurring losses from operations and its present financial resources raise substantial doubt about its ability to continue as a going concern. DOLPHIN DIGITAL: Delays Filing of Quarterly Report -------------------------------------------------- Dolphin Digital Media, Inc., filed a Form 12b-25 with the Securities and Exchange Commission notifying the delay in the filing of its quarterly report on Form 10-Q for the period ended June 30, 2016. The Company said the Form 10-Q could not be filed within the prescribed time because additional time is required by its management and auditors to prepare certain financial information to be included in that report. During the three and six months ended June 30, 2016, the Company incurred loss on extinguishment of debt of approximately $4.7 million and $5.8 million, respectively, as compared to $0 for the same periods in the prior year. This was a result of the Company entering into agreements with certain noteholders, including Dolphin Entertainment, Inc., an entity wholly owned by its Chief Executive Officer, to convert an aggregate amount of approximately $26.6 million of debt outstanding into approximately 5.3 million shares of the Company's common stock, par value $0.15 per share, at a price of $5.00 per share of Common Stock. The conversions occurred on days when the market price per share of Common Stock was between $6.00 and $6.99 per share. In addition, during the three and six months ended June 30, 2016, interest expense increased by approximately $1.1 million and $1.8 million, respectively, as compared to the same periods in the prior year. The increases were primarily related to $12.5 million in loan and security agreements entered into by the Company during 2015 for its film division. The Company incurred net loss of approximately $11.2 million per share for the six months ended June 30, 2016, and approximately $7.7 million for the three months ended June 30, 2016 as compared to approximately $4.4 million for the six months ended June 30, 2015 and approximately $2.1 million for the three months ended June 30, 2015. About Dolphin Digital Coral Gables, Florida-based Dolphin Digital Media, Inc., is dedicated to the twin causes of online safety for children and high quality digital entertainment. By creating and managing child-friendly social networking websites utilizing state-of the- art fingerprint identification technology, Dolphin Digital Media, Inc. has taken an industry-leading position with respect to internet safety, as well as digital entertainment. Dolphin Digital reported a net loss of $4.05 million on $2.99 million of total revenue for the year ended Dec. 31, 2015, compared to a net loss of $1.87 million on $2.07 million of total revenue for the year ended Dec. 31, 2014. As of March 31, 2016, Dolphin Digital had $20.71 million in total assets, $46.72 million in total liabilities and a total stockholders' deficit of $26 million. BDO USA, LLP, in Miami, Florida, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2015, citing that the Company has suffered recurring losses from operations, negative cash flows from operations, and does not have sufficient working capital. These events raise substantial doubt about the Company's ability to continue as a going concern. DOMINION PAVING: Unsecured Creditors to Get 35% Under Exit Plan --------------------------------------------------------------- General unsecured creditors of Dominion Paving & Sealing, Inc., will get at least 35% of their claims under the company's proposed Chapter 11 plan of reorganization. Under the plan, general unsecured creditors will receive distributions of at least 35% of their Class 4 claims representing their pro rata share of "Class 4 assets" for a period of five years, plus net recoveries from avoidance actions. Dominion proposes to pay general unsecured creditors from the funds generated by operations, proceeds from the sale of surplus equipment and from avoidance actions. Class 4 claims, excluding claims asserted by former shareholders J. Garland Johnston and Jackie Atkinson, total approximately $1 million. Dominion opposes these claims on grounds that they should be recharacterized as an equity interest. A copy of the disclosure statement explaining the plan is available for free at https://is.gd/Ln0God About Dominion Paving Dominion Paving & Sealing, Inc. sought protection under Chapter 11 of the Bankruptcy Code (Bankr. E. D. Va. Case No. 15-32966) on June 10, 2015. The petition was signed by Stephen H. Parham, president. The case is assigned to Judge Keith L. Phillips. At the time of the filing, the Debtor estimated its assets at $1 million to $10 million. The Debtor did not disclose its total liabilities at the time of the filing. DORAL FINANCIAL: Panel Seeks Approval of FDIC Settlement -------------------------------------------------------- BankruptcyData.com reported that Doral Financial (DFC), Doral Properties and the official committee of unsecured creditors filed with the U.S. Bankruptcy Court a joint motion to approve a settlement with the Federal Deposit Insurance Corporation in its capacity as receiver for Doral Bank Puerto Rico (FDIC-R) and related parties. The motion explains, "From early in these bankruptcy cases, one of the major issues has been the treatment of the myriad claims filed by the Debtors against the Doral Bank Puerto Rico ('Doral Bank') receivership and by the FDIC-R against the Debtors in their bankruptcy cases. In addition, given the past corporate relationship between these entities, the Debtors and the FDICR also have asserted competing ownership claims to a variety of assets. Absent settlement, these claims and asset ownership disputes would result in lengthy, complex, and expensive litigation." The motion further notes, "The Settlement Agreement provides the Debtors' estates with the following benefits: the settlement of the FDIC-R's servicing-related claims and allowance of the Doral Bank POC for significantly reduced amounts, solely to the extent of: an administrative expense claim of $700,000; and an unsecured claim of $4,250,000. DFC's entitlement to 100% of any recoveries up to $20 million on account of the Tax Assets, and 80% of any recoveries in excess of $20 million; DFC's entitlement to 80% of any recoveries on account of the DFC Overpayment; DFC's retention of 100% of the net proceeds of the sale of the OA Parking Lot (approximately $1.5 million); the disallowance of the Doral Recovery II POC; reservation of each of the parties' rights with respect to the proceeds of directors and officers insurance policies historically maintained by the DFC Group; mutual releases; and cessation and dismissal of the pending litigations." The Court scheduled a Sept. 7, 2016 hearing on the motion, with objections due by Aug. 26, 2016. About Doral Financial Corp. Doral Financial Corp. (the "DFC") is a holding company whose primary operating asset was equity in Doral Bank. DFC maintains offices in New York City, Coral Gables, Florida and San Juan, Puerto Rico. The company has three wholly-owned subsidiaries: Doral Properties, Inc., Doral Insurance Agency, LLC, and Doral Recovery, Inc. On Feb. 27, 2015, regulators placed Doral Bank into receivership and named the Federal Deposit Insurance Corp. as receiver. Doral Bank served customers through 26 branches located in New York, Florida, and Puerto Rico. DFC sought Chapter 11 protection (Bankr. S.D.N.Y. Case No. 15-10573) in Manhattan on March 11, 2015. The case is assigned to Judge Shelley C. Chapman. It estimated $50 million to $100 million in assets and $100 million to $500 million in debt as of the bankruptcy filing. DRAW ANOTHER CIRCLE: Hilco to Assist in Sale of IP Assets --------------------------------------------------------- Hilco Streambank has been hired, subject to bankruptcy court approval, to assist Draw Another Circle, LLC d/b/a Hastings Entertainment in the sale of its intellectual property assets. The assets include all IP associated with the Hastings(R), MovieStop(R) and Tradesmart(R) brands. The sale is being conducted pursuant to Section 363 of the Bankruptcy Code in the Draw Another Circle, LLC Chapter 11 case pending in the United States Bankruptcy Court for the District of Delaware. Parties interested in acquiring the IP assets have been asked to submit bids on or before Thursday, Sept. 15, 2016 at 5:00 p.m. ET. "The Hastings (R) brand has strong recognition by consumers in the new and used multimedia market throughout the Southern, Midwest, Northwest and Northeast U.S." said Hilco Streambank CEO, Gabe Fried. "Over the last fifty years, the Company has established itself as a leading multimedia entertainment and lifestyle retailer whose offerings include movies, video games and consoles, software, consumer electronics, comic books, collectible trading cards, action figures, recreation and hobby products, and related apparel and accessories, at competitive price points for both the newest releases as well as vintage products. By acquiring the MovieStop(R) brand from GameStop Corporation in 2014, Hastings Entertainment was able to provide their loyal customer base of over fifteen million with unmatched variety and quality in their movie product lines." Hastings Entertainment operated over 170 stores between each of their banners, as well as its e-commerce platform, http://www.gohastings.com/, which generated approximately 70 million unique page views over the last year. About Hilco Streambank Hilco Streambank -- http://www.hilcostreambank.com-- is an advisory firm specializing in intellectual property disposition and valuation representing brands across various industries. Having completed numerous transactions including sales in publicly reported Chapter 11 bankruptcy cases, private transactions, and online sales through HilcoDomains.com and IPv4Auctions.com, Hilco Streambank has established itself as the premier intermediary in the consumer brand, internet and telecom communities. Hilco Streambank is part of Northbrook, Illinois based Hilco Global --http://www.hilcoglobal.com-- a worldwide financial services company and a leader in helping companies maximize the value of their assets. About Draw Another Circle Draw Another Circle, LLC and four of its subsidiaries, namely, Hastings Entertainment, Inc., MovieStop, LLC, SP Images, Inc., and Hastings Internet, Inc. filed voluntary petitions under Chapter 11 of the Bankruptcy Code (Bankr. D. Del. Lead Case No. 16-11452) on June 13, 2016. As of the bankruptcy filing, Hastings operated 123 entertainment superstores, averaging approximately 24,000 square feet, principally in medium-sized markets located in 19 states, primarily in the Northwestern, Midwestern, and Southeastern United States, and had over 3,500 employees. As of the Petition Date, Atlanta-based MovieStop operated 39 destination locations in 10 states, primarily along the Eastern United States Coast. Headquartered in Franklin, Massachusetts, SP Images, Inc., is a distributor of sports and entertainment products and apparel. Hastings, MovieStop and SPI are each wholly-owned subsidiaries of DAC. Cooley LLP and Whiteford Taylor Preston, LLP serve as counsel to the Debtors. The Debtors tapped FTI Consulting as financial advisor, and Rust Consulting/Omni Bankruptcy as claims and noticing agent. Andrew Vara, acting U.S. Trustee for Region 3, on June 21 appointed seven creditors of Draw Another Circle, LLC, to serve on the official committee of unsecured creditors. The Official Committee of Unsecured Creditors retained Lowenstein Sandler LLP as counsel, FTI Consulting, Inc. as financial advisor, and BDO USA, LLP as financial advisor. EAST TEXAS MEDICAL CENTER: Moody's Cuts Debt Rating to Ba1 ---------------------------------------------------------- Moody's Investors Service downgrades East Texas Medical Center Regional Healthcare System's (ETMC) debt rating to Ba1 from Baa3. The action affects $286 million of outstanding rated revenue bonds issued by Tyler Health Facilities Development Corporation and Wood County Central Hospital District. The rating outlook is negative. The Ba1 reflects the system's weakening financial performance in FY 2015 which continues in to FY 2016 and thinning debt service coverage. The financial weakening is due to the long-standing out-of-network status with several of the commercial insurance plans, rising bad debt and charity care in recent years, expenses related to physician employment and costs associated with the Blue Cross litigation. The Ba1 acknowledges the system's very recent, successful conclusion of the litigation with Blue Cross and the signing of a new multi-year contract, to be executed in the next 2 to 3 weeks. The favorable impact will likely be captured over a longer period of time as the system faces some headwinds as it seeks to build physician referrals in the highly competitive Tyler market. The system's challenges are offset by the relatively low leverage position and conservative investment allocation. Rating Outlook The negative outlook reflects our expectation that performance will continue to be suppressed in the near term given the uncertain nature of the market share recapture following the recent settlement with Blue Cross (the largest commercial provider within Texas). Inability to stabilize financial performance or maintain the system's cash position could result in further pressure on the rating. Factors that Could Lead to an Upgrade -- Significant and durable improvement in operating performance more in line with Baa3 peers -- Improvement in debt service coverage ratios as well as improvement in liquidity metrics Factors that Could Lead to a Downgrade -- Inability to stabilize financial performance over the near term -- Decrease in cash position -- Reduction in headroom to covenants Legal Security The obligated group is comprised of the parent corporation. All affiliate hospitals have executed a security interest of their revenues and receipts to the corporate parent in favor of the master trustee for the benefit of all bondholders. Additionally, each restricted affiliate signed an Undertaking Agreement which obligates each affiliate to make contributions to the extent necessary for due and punctual payments of principal and interest for all outstanding bonded debt. The restricted affiliates must adhere to all covenants in the master trust indenture. A mortgage via a deed of trust is also pledged on the Tyler, Athens, Jacksonville, and Quitman facilities. Use of Proceeds Not Applicable Obligor Profile East Texas Medical Center Regional Healthcare System is a system of primary, secondary and tertiary healthcare facilities and services located across east Texas. The system currently operates seven acute care hospitals and several other entities including clinics and specialty centers. Methodology The principal methodology used in this rating was Not-For-Profit Healthcare Rating Methodology published in November 2015. ECOSPHERE TECHNOLOGIES: Notes Amendments Delay Form 10-Q Filing --------------------------------------------------------------- Ecosphere Technologies, Inc., notified the Securities and Exchange Commission regarding the delay in the filing of its quarterly report on Form 10-Q for the period ended June 30, 2016. The Company was unable to timely complete the preparation of its 10-Q because it was completing the accounting relating to an excessive amount of convertible note amendments which delayed completion of the financial statements. In addition, the Company expects to close on a second business transaction in Washington State and intends to include that in their 10-Q assuming it closes this week. Total revenues for the three and six months ended June 30, 2016, were $46,449 and $53,429, while total revenues for the three and six months ended June 30, 2015, were $6,250 and $19,964. Net loss for the three and six months ended June 30, 2016, were $(3,217,152) and $(5,183,098), while net loss for the three and months ended June 30, 2015 were $(2,309,329) and $(5,112,110). About Ecosphere Technologies Stuart, Florida-based Ecosphere Technologies (OTC BB: ESPH) -- http://www.ecospheretech.com/-- is a water engineering, technology licensing and environmental services company that designs, develops and manufactures wastewater treatment solutions for industrial markets. Ecosphere, through its majority-owned subsidiary Ecosphere Energy Services, LLC, provides energy exploration companies with an onsite, chemical free method to kill bacteria and reduce scaling during fracturing and flowback operations. Ecosphere reported a net loss of $23.06 million on $721,179 of total revenues for the year ended Dec. 31, 2015, compared to a net loss of $11.49 million on $1.11 million of total revenues for the year ended Dec. 31, 2014. As of March 31, 2016, the Company had $2.08 million in total assets, $11.85 million in total liabilities, $3.90 million in total redeemable convertible cumulative preferred stock, and a total deficit of $13.7 million. Salberg & Company, P.A., in Boca Raton, Florida, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2015, citing that the Company reported a net loss of $23,067,761 and $11,496,463 in 2015 and 2014, respectively, and cash used in operating activities of $1,761,946 and $4,550,454 in 2015 and 2014, respectively. At December 31, 2015, the Company had a working capital deficiency, stockholders' deficit and accumulated deficit of $9,322,066, $12,218,672 and $132,397,790 respectively. These matters raise substantial doubt about the Company's ability to continue as a going concern. ELBIT IMAGING: Insightec Signs Cooperation Agreement with Siemens ----------------------------------------------------------------- Elbit Imaging Ltd. announced that Insightec Ltd. has signed a non-exclusive cooperation agreement with Siemens Healthcare GmbH, a leading manufacturer and developer of diagnostic imaging equipment in general and Magnetic Resonance scanners specifically, to develop compatibility between INSIGHTEC's MRI guided Focused Ultrasound Systems (MRgFUS) and Siemens MRI scanners (the "Systems") with the intention to expand the MRgFUS market globally. According to the Agreement, the Parties will cooperate regarding the performance of R&D, integration, testing and approving the compatibility of the Parties' Systems. Each Party will be solely responsible, at its own cost, to obtain the regulatory approval for its systems, and InSightec shall be solely responsible, at its sole cost, to obtain the regulatory approval for the combined system. Each Party will bear all of its internal and external costs relating to its performance under the Agreement, except that InSightec shall reimburse Siemens an amount agreed upon in the Agreement, for its R&D costs. The Agreement also determines that each Party will act independently in the marketing and sales of its component portion of the Combined System, and determines the amount InSightec will pay Siemens for sales of the Combined Systems. The term of the Agreement is five years from the first commercial sale of the combined system and shall automatically renew for additional 1-year periods, unless either Party has provided a notice for its non-renewal or of its termination, in accordance with the terms of the Agreement. Each Party will have a limited liability towards the other Party for direct damages only. In addition, each Party is required to maintain a minimal insurance coverage for the purpose of the Agreement during the term of the Agreement and for a few years thereafter. The Company holds approximately 89.9% of the share capital of Elbit Medical Technologies Ltd. (TASE: EMTC-M) (86.2% on a fully diluted basis) which, in turn, holds approximately 31.4% of the share capital in INSIGHTEC (25.6% on a fully diluted basis). About Elbit Imaging Tel-Aviv, Israel-based Elbit Imaging Ltd. (TASE, NASDAQ: EMITF) holds investments in real estate and medical companies. The Company, through its subsidiaries, also develops shopping and entertainment centers in Central Europe and invests in and manages hotels. Elbit Imaging reported a loss of NIS 186.15 million on NIS 1.47 million of revenues for the year ended Dec. 31, 2015, compared to profit of NIS 1 billion on NIS 461,000 of revenues for the year ended Dec. 31, 2014. As of Dec. 31, 2015, Elbit Imaging had NIS 778.25 million in total assets, NIS 758.96 million in total liabilities and NIS 19.28 million in shareholders' equity. Since February 2013, Elbit has intensively endeavored to come to an arrangement with its creditors. Elbit has said it has been hanging by a thread for more than five months. It has encountered cash flow difficulties and this burdens its day to day activities, and it certainly cannot make the necessary investments to improve its assets. In light of the arrangement proceedings, and according to the demands of most of the bondholders, as well as an agreement that was signed on March 19, 2013, between Elbit and the Trustees of six out of eight series of bonds, Elbit is prohibited, inter alia, from paying off its debts to the financial creditors -- and as a result a petition to liquidate Elbit was filed, and Bank Hapoalim has declared its debts immediately payable, threatening to realize pledges that were given to the Bank on material assets of the Company -- and Elbit undertook not to sell material assets of the Company and not to perform any transaction that is not during its ordinary course of business without giving an advance notice to the trustees. Accountant Rony Elroy has been appointed as expert for examining the debt arrangement in the Company. In July 2013, Elbit Imaging's controlling shareholders, Europe- Israel MMS Ltd. and Mr. Mordechay Zisser, notified the Company that the Tel Aviv District Court has appointed Adv. Giroa Erdinast as a receiver with regards to the ordinary shares of the Company held by Europe Israel securing Europe Israel's obligations under its loan agreement with Bank Hapoalim B.M. The judgment stated that the Receiver is not authorized to sell the Company's shares at this stage. Following a request of Europe-Israel, the Court also delayed any action to be taken with regards to the sale of those shares for a period of 60 days. Europe Israel and Mr. Zisser have also notified the Company that they utterly reject the Bank's claims and intend to appeal the Court's ruling. ELEPHANT TALK: Stockholders Elect Four Directors ------------------------------------------------ At the annual meeting of stockholders of Elephant Talk Communications Corp. held on Tuesday, Aug. 16, 2016, the stockholders: (1) elected Robert H. Turner, Robert Skaff, Roderick de Greef and Yves van Sante as directors to serve until the next annual meeting of stockholders; (2) ratified the appointment of Squar Milner LLP, an independent registered public accounting firm, as the Company's independent auditors for fiscal year 2016; (3) approved an amendment to Part A of Article IV of the Company's Certificate of Incorporation, as amended, to increase the number of authorized shares of common stock from 250,000,000 to 500,000,000; (4) approved an amendment to Part A of Article IV of the Certificate of Incorporation to effect a reverse stock split of the common stock at a ratio of between one-for-ten and one-for-twenty five with such ratio to be determined at the sole discretion of the Board and with such reverse stock split to be effected at such time and date, if at all, as determined by the Board in its sole discretion; and (5) approved an amendment to the Company's Certificate of Incorporation to change the name of the Company from "Elephant Talk Communications Corp." to "Pareteum Corporation," such name change to occur at such time and date, as determined by the Board in its sole discretion. About Elephant Talk Lutz, Fla.-based Elephant Talk Communications, Inc. (OTC BB: ETAK) -- http://www.elephanttalk.com/-- is an international provider of business software and services to the telecommunications and financial services industry. Elephant Talk reported a net loss of $5 million on $31.01 million of revenues for the year ended Dec. 31, 2015, compared to a net loss of $21.9 million on $20.4 million of revenues for the year ended Dec. 31, 2014. As of June 30, 2016, the Company had $22.50 million in total assets, $19.96 million in total liabilities and $2.53 milion in total stockholders' equity. Squar Milner, LLP (formerly Squar Milner, Peterson, Miranda & Williamson, LLP), in Los Angeles, California, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2015, citing that the Company has suffered recurring losses from operations, has an accumulated deficit of $256 million and has negative working capital. This raises substantial doubt about the Company's ability to continue as a going concern, the auditors said. ELEPHANT TALK: Swings to $2.82M Net Loss in Q2 2016 Quarter ----------------------------------------------------------- Elephant Talk Communications Corp. filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $2.82 million on $3.26 million of revenues for the three months ended June 30, 2016, compared to net income of $9.52 million on $19.2 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 $7.13 million on $6.54 million of revenues compared to net income of $7.39 million on $24.3 million of revenues for the same period last year. As of June 30, 2016, the Company had $22.50 million in total assets, $19.96 million in total liabilities and $2.53 million in total stockholders' equity. Elephant Talk was unable to file the Quarterly Report on a timely basis because the Company required additional time to work internally with its staff and externally with its outside auditors to prepare and finalize the Form 10-Q. Hal Turner, executive chairman of the Board of ET, stated, "During the second quarter of 2016 our restructuring success accentuated the Company's immediate need for new investment funds. However, efforts to secure new debt financing prior to the end of the second quarter were delayed by factors beyond the control of the Company. I am pleased to report that two very important stakeholders in the Company, our largest customer and our senior lender have come together to provide the necessary and vital support to enable the future growth of the Company. This is particularly gratifying and although there is still plenty of work to do to restore much-needed confidence from our equity investors and all our stakeholders, the foundation has been established." Through the end of the second quarter 2016, the Company has completed two phases of its three-phase restructuring program announced late in 2015, yielding cumulative annualized savings of approximately $6.6 million primarily the result of headcount reductions from 265 full time equivalents to 154 FTEs at the end of the second quarter 2016. Commenting on the restructuring, Mr. Turner said, "Our restructuring efforts have generated great savings and I am extremely proud of the resourcefulness and resilience of our loyal employees around the world who have continued to provide great service and support for our customers. With the continued support of all of our stakeholders, we can now look forward to the execution of the third phase of our program: sales, marketing and growth. The expected results will be the finalization of our restructuring initiative, greater revenue per employee, improved productivity and increasing revenues during the second half of 2016 and beyond." Mr. Turner addressed the importance of having the Company's stakeholders' support: "The Company has emerged from a very difficult operating period whereby we have had to instigate an immediate 'right sizing' of the company relative to our current revenue generating capabilities. It is a testament to the underlying strength of our Company, and the belief in our technology and our people, that our senior lender has increased its investment and our largest customer, who relies upon the Elephant Talk platform, has reaffirmed its commitment and shared its plans for growth. The time is now for equity investors to embrace management's vision, recognize the Company's strengths and appreciate the vital role our senior lender has played in ensuring the persistence of the Company. We will tirelessly execute on the mandate to complete the restructuring and grow the business hand-in-hand with all of our stakeholders." Mr. Turner continued: 'We are looking forward to moving into a growth phase in parallel with the conclusion of our restructuring program, and demonstrating the Company's full capability to provide relevant highly valued services in a rapidly expanding addressable market." Going Concern "Although we have previously been able to raise capital as needed, there can be no assurance that additional capital will be available at all, or if available, on reasonable terms. Further, the terms of such financing may be dilutive to our existing stockholders or otherwise on terms not favorable to us, or our existing stockholders. If we are unable to secure additional capital, and/or do not succeed in meeting our cash flow objectives or the Lender takes steps to call the loan before new capital is attracted, the Company will be materially and negatively impacted, and we may have to significantly reduce our operations. "As of June 30, 2016, these events combined with the delays in the divestiture of ValidSoft raise substantial doubt about the Company's ability to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. The additional $1 million of capital provided by Atalaya on August 15th is intended as short-term bridge financing to help the Company complete an issuance of equity and/or divest assets," the Company said in the report. The Company's quarterly report on Form 10-Q is available from the SEC website at https://is.gd/oRUXVn About Elephant Talk Lutz, Fla.-based Elephant Talk Communications, Inc. (OTC BB: ETAK) -- http://www.elephanttalk.com/-- is an international provider of business software and services to the telecommunications and financial services industry. Elephant Talk reported a net loss of $5 million on $31.01 million of revenues for the year ended Dec. 31, 2015, compared to a net loss of $21.9 million on $20.4 million of revenues for the year ended Dec. 31, 2014. Squar Milner, LLP (formerly Squar Milner, Peterson, Miranda & Williamson, LLP), in Los Angeles, California, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2015, citing that the Company has suffered recurring losses from operations, has an accumulated deficit of $256 million and has negative working capital. This raises substantial doubt about the Company's ability to continue as a going concern, the auditors said. EMMAUS LIFE: Delays Filing of Quarterly Report with SEC ------------------------------------------------------- Emmaus Life Sciences, Inc., disclosed in a Form 12b-25 filed with the Securities and Exchange Commission that it has been unable to complete its internal process for its consolidated financial statements for the quarters ended June 30, 2016. "Specifically, we are evaluating the appropriate accounting for certain warrant issuances to a lender with initial derivative liability characteristics and the impact of reclassification of such warrant to equity as of June 30, 2016 and the quarter then ended. We are, however, in the process of completing these evaluations and the other required work on these reports. Based upon our evaluations to date, we do not anticipate that any adjustments resulting from these efforts will be material. "These delays could not have been eliminated without unreasonable effort or expense. We expect to file our Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2016 within the time period permitted by Rule 12b-25." About Emmaus Life Emmaus Life Sciences, Inc., is engaged in the discovery, development, and commercialization of treatments and therapies primarily for rare and orphan diseases. This biopharmaceutical company's headquarters is in Torrance, California. Emmaus Life reported a net loss of $12.69 million on $590,114 of net revenues for the year ended Dec. 31, 2015, compared to a net loss of $21.75 million on $500,679 of net revenues for the year ended Dec. 31, 2014. As of March 31, 2016, Emmaus Life had $1.34 million in total assets, $31.69 million in total liabilities and a total stockholders' deficit of $30.35 million. SingerLewak LLP, in Los Angeles, California, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2015, citing that the Company has suffered recurring losses from operations, its total liabilities exceed its total assets and it has an accumulated stockholders' deficit. This raises substantial doubt about the Company's ability to continue as a going concern. ENERGY XXI: Equity Panel Hires Trott & Duncan as Bermuda Counsel ---------------------------------------------------------------- The Official Committee of Equity Security Holders of Energy XXI Ltd., et al., seeks authorization from the U.S. Bankruptcy Court for the Southern District of Texas to retain Trott & Duncan Limited as Bermuda counsel to the Committee, effective as of August 2, 2016. Equity Committee requires Trott & Duncan to: a. assist and advise regarding whether the Plan complies with Bermuda law and take action to protect the equity security holders' interests; b. provide Foreign Law Declarations in accord with Federal Rules of Civil Procedure Rule 44.1 and other applicable law to the extent needed; c. assist and advise regarding whether the Plan terminates the equity interests contrary to the requirements of Bermuda law; d. assist and advise regarding the Bermuda Liquidation Proceeding, including but not limited to what impact proceedings filed in that case could affect the Equity Committee's rights in the Bankruptcy; e. assist and advise the Equity Committee in connection with its powers and duties in Bermuda or in relation to matters of Bermuda law; f. assist and advise the Equity Committee in its examination and analysis of the conduct of the Debtors' affairs from a Bermuda law prospective; g. assist and advise the Equity Committee in connection with any sale of the Debtors' assets under Bermuda law; and h. appear in Bermuda as necessary to protect the rights of equity interests in Bermuda. Trott & Duncan will be paid at these hourly rates: Delroy Duncan, Counsel $695 Janet Weaver, Paralegal $150 Trott & Duncan will also be reimbursed for reasonable out-of-pocket expenses incurred. The following is provided in response to the request for additional information as follows: a. Question: Did the Bermuda Counsel agree to any variations from, or alternatives to, Bermuda Counsels' standard billing arrangements for this engagement? Answer: No. b. Question: Do any of the Bermuda Counsels' professionals in this engagement vary their rate based on the geographic location of the Debtors' chapter 11 cases? Answer: No. c. Question: If the Bermuda Counsel have represented the Equity Committee in the 12 months pre-petition, disclose the Bermuda Counsels' billing rates and material financial terms for the pre-petition engagement, including any adjustments during the 12 months pre-petition. If Bermuda Counsels' billing rates and material financial terms have changed post-petition, explain the difference and the reasons for the difference. Answer: Bermuda Counsel did not represent the Equity Committee pre-petition. d. Question: Has the Equity Committee approved the Bermuda Counsels' budget and staffing plan, and, if so, for what budget period? Answer: The Equity Committee proposes to use the Bermuda Counsel on ad hoc basic and until Bermuda Counsel has a chance to investigate issues, a budget is premature. Delroy Duncan, member of Trott & Duncan Limited, 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. Trott & Duncan can be reached at: Delroy Duncan, Esq. Trott & Duncan Limited 17A Brunswick Street Hamilton HM HX, Bermuda Tel: (441) 295-7444 Fax: (441) 295-6600 About Energy XXI Ltd Energy XXI Ltd (OTCMKTS: EXXIQ) was incorporated in Bermuda on July 25, 2005. With its principal operating subsidiary headquartered in Houston, Texas, Energy XXI is engaged in the acquisition, exploration, development and operation of oil and natural gas properties onshore in Louisiana and Texas and in the Gulf of Mexico Shelf. Energy XXI Ltd and 25 of its affiliates filed bankruptcy petitions (Bankr. S.D. Tex. Lead Case No. 16-31928) on April 14, 2016. The petitions were signed by Bruce W. Busmire, the CFO. Judge Karen K. Brown is assigned to the cases. Energy XXI Ltd on April 14, 2016, also filed a winding-up petition commencing an official liquidation proceeding under the laws of Bermuda before the Supreme Court of Bermuda. The Debtors sought bankruptcy protection after reaching a deal With lenders on the filing of a restructuring plan that would convert $1.45 billion owed to second lien noteholders into equity of the reorganized company. The Debtors have hired Vinson & Elkins LLP as counsel, Gray Reed & McGraw, P.C. as special counsel, Conyers Dill & Pearman as Bermuda counsel, Locke Lord LLP as regulatory counsel, PJT Partners LP as investment banker, Opportune LLP as financial advisor, Epiq Systems, Inc., as notice and claims agent. Wilmer Cutler Pickering Hale and Dorr LLP represent an ad hoc group of certain holders and investment advisors and managers for holders of obligations arising from the 8.25% Senior Notes due 2018 issued pursuant to that certain Indenture, dated as of Feb. 14, 2011, by and among EPL Oil & Gas, Inc., certain of EPL's subsidiaries, as guarantors, and U.S. Bank National Association, as trustee. The Office of the U.S. Trustee on April 26, 2016, appointed five creditors of Energy XXI Ltd. to serve on the official committee of unsecured creditors. The Committee retains Heller, Draper, Patrick, Horn & Dabney LLC as its co-counsel, Latham & Watkins LLP as its co-counsel, and FTI Consulting, Inc. as its financial advisor. The U.S. Trustee also appointed an Official Committee of Equity Security Holders. The Equity Committee retained Hoover Slovacek LLP as its legal counsel, and Williams Barristers & Attorneys, as Bermuda counsel. EQUINIX INC: S&P Raises CCR to 'BB+', Off Watch Positive -------------------------------------------------------- S&P Global Ratings said it raised its corporate credit rating on Redwood City, Calif.-based Equinix Inc. to 'BB+' from 'BB' and removed all ratings from CreditWatch, where S&P had placed them with positive implications on July 25, 2016. The outlook is stable. At the same time, S&P raised its issue-level ratings on the company's secured debt to 'BBB' from 'BBB-'. The recovery rating remains '1', indicating S&P's expectation for substantial recovery (90%-100%) in a payment default scenario. S&P also raised its issue-level ratings on the company's unsecured debt to 'BB+' from 'BB'. The recovery rating remains '3', indicating S&P's expectation for meaningful (30%-50%; upper end of the range) recovery in the event of a payment default. "The upgrade reflects our belief that Equinix's network and cloud-dense environment positions the company well to take advantage of rising demand for data centers driven by increased IT outsourcing by enterprises, data growth, and increased application complexity," said S&P Global Ratings credit analyst Chris Mooney. Equinix has steadily expanded over the years, both organically and through acquisitions, more than doubling its revenue base since 2011. The company now operates 146 data centers in 40 markets across North America, Europe, and Asia making it the largest retail colocation provider globally with a 14% share of the growing market. S&P believes Equinix's significant scale enhances the value of its overall ecosystem, allowing customers to interconnect to other enterprise, network and cloud customers--which S&P believes will become more prevalent in the future as businesses, networks, machines, and data become increasingly more connected--while its global footprint attracts multinational customers. As a result, S&P anticipates that Equinix will outpace overall retail colocation market growth of 8%-10% over the next several years. The outlook is stable. S&P expects adjusted net debt to EBITDA to improve modestly to the low-4x area over the next year as earnings growth is partly offset by lower cash balances and possibly revolver borrowings to fund capital investments, acquisitions, and dividend distributions. FIRED UP: Gets Final OK to Use Cash Collateral Through Nov. 2 ------------------------------------------------------------- Judge Tony M. Davis of the U.S. Bankruptcy Court for the Western District of Texas authorized Fired Up, Inc. to use cash collateral on a final basis to pay its usual and necessary operating expenses through November 2, 2016. The Debtor was allowed to exceed any line item on the budget by 25% so long as it does not exceed the total allowance for cash collateral for the month by more than 10%. Any unused portion of the line item for professional fees could be carried forward to subsequent months. The Debtor was directed to continue making the regularly scheduled contractual payments on the debts owed to Prosperity Bank. As adequate protection for the Comptroller of Public Accounts, the Court ordered the Debtor to: a. segregate in a new debtor-in-possession "tax account” an amount equal to the unpaid sales taxes accrued in June of 2016 which became due and payable on July 20, 2016; b. timely pay all sales taxes accrued during July of 2016, including those for July 1 through July 13, 2016, on or before August 22, 2016. A full-text copy of the Final Cash Collateral Order, dated August 11, 2016, is available at http://tinyurl.com/zovu2mc About Fired Up, Inc. Fired Up, Inc., the Austin, Texas-based owner and operator of the Johnny Carino's Italian restaurant chain, sought Chapter 11 bankruptcy protection (Bankr. W.D. Tex. Case No. 14-10447) on March 27, 2014, in Austin. The Debtor is represented by Barbara M. Barron, Esq. and Lynn Saarinen, Esq. at Barron & Newburger, P.C., in Austin. It estimated assets and debt of $10 million to $50 million. As of the bankruptcy filing, Fired Up had 2,900 employees and owned and operated 46 company-owned stores known as Johnny Carino's Italian in seven states (Texas, Arkansas, Colorado, Louisiana, Idaho, Kansas and Missouri) and 61 franchised or licensed locations in 17 states and four other countries (Bahrain, Dubai, Egypt and Kuwait). The company began its own "out of court" reorganization in the last quarter of 2013 by closing 20 unprofitable restaurants. The company later opted to seek bankruptcy protection to tie up the "loose ends" of its self-imposed "reorganization" that did not appear capable of being tied up without litigation. In particular, the provisions of the Bankruptcy Code with respect to the rejection of burdensome leases and the ability to propose and pay out its debts pursuant to a Plan without piecemeal prosecution by random uncooperative creditors undermining same were particularly attractive. For the fiscal year ending June 27, 2012, the company reported total revenues of $125.7 million, net income of $614,000, and guest counts of 8.6 million. For the fiscal year ending June 26, 2013, the company reported total revenues of $120.8 million, a net loss of $5.9 million, and guest counts totaling 8.5 million. The Debtor disclosed $10,360,877 in assets and $36,139,375 in liabilities. Creed Ford III is the majority shareholder and has served as president and CEO since 2008. Mr. Ford and Norman J. Abdallah formed Fired Up in 1997 for the purpose of acquiring the then six-unit Johnny Carino's Italian Kitchen chain from Brinker International, Inc. The U.S. Trustee appointed a seven-member Official Committee of Unsecured Creditors. The Committee tapped Pachulski Stang Ziehl & Jones LLP as its counsel, and FTI Consulting, Inc. as its financial advisor. FORESIGHT ENERGY: Appoints Brian Sullivan as Director ----------------------------------------------------- Foresight Energy LP has appointed Mr. Brian D. Sullivan as a new independent member of the Board of Directors of its general partner and a member of the Board's audit committee. Mr. Sullivan has extensive experience in the coal industry, most recently serving as a managing member of Energy Resource Services, LLC, a consulting company that provides M&A and commercial advisory services to companies in the natural resources, energy and industrial sectors. Previously, Mr. Sullivan worked for Alpha Natural Resources, Inc. as the executive vice president and chief commercial officer. "Brian brings many years of experience in the coal industry to our board. His prior experiences as an operator and consultant will serve the board well. I look forward to working with him as we continue our mission to operate the most efficient, reliable and safest coal mines in the country," said Mr. Chris Cline, Foresight's founder and Chairman of the Board. About Foresight Energy Foresight Energy mines and markets coal from reserves and operations located exclusively in the Illinois Basin. As of Dec. 31, 2015, the Company has invested over $2.3 billion to construct state-of-the-art, low-cost and highly productive mining operations and related transportation infrastructure. The Company controls over 3 billion tons of proven and probable coal in the state of Illinois, which, in addition to making the Company one of the largest reserve holders in the United States, provides organic growth opportunities. The Company's reserves consist principally of three large contiguous blocks of uniform, thick, high heat content (high Btu) thermal coal which is ideal for highly productive longwall operations. Thermal coal is used by power plants and industrial steam boilers to produce electricity or process steam. Foresight Energy reported a net loss attributable to limited partner units of $39.47 million on $984.85 million of total revenues for the year ended Dec. 31, 2015, compared to net income attributable to limited partner units of $70.19 million on $1.10 billion of total revenues for the year ended Dec. 31, 2014. As of 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. 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'. FRANKLIN LOCKE: Selling Wine Collection to CANA for $9K ------------------------------------------------------- Franklin Graham Locke asks the U.S. Bankruptcy Court for the Middle District of Tennessee, to authorize the sale of the wine collection listed in Schedule B of the Debtor's Petition to CANA Wine Co., LLC for $9,000. The matter must be handled on an expedited basis because (a) an Order has been issued in the Debtor's divorce proceeding requiring the sale of certain property including the wine collection, (b) the wine collection is currently located inside the Debtor's real property on Lynnwood Boulevard, (c) the Real Property is being sold with a closing date set for Aug. 26, 2016, (d) the wine collection must be moved out of the Real Property before the closing on the Real Property sale, and (e) the purchase of the wine collection is contingent upon the Court's approval. The Debtor requests the Court to set the hearing on the Motion for Aug. 23, 2016 at 9:00 a.m. and the deadline for filing any objections to the Motion for Aug. 19, 2016, at noon local time. The Debtor's interest in the wine collection is not encumbered. The entire amount of the net sale proceeds will be deposited with the Clerk of Davidson County Circuit Court and maintained in an interest-bearing account pending further order of the Circuit Court in the divorce proceeding styled Dr. Franklin Graham Locke v. Kristin Stegall Locke, Docket No. 15D-194. About Franklin Graham Locke Franklin Graham Locke filed a Chapter 11 bankruptcy petition (Bankr. M.D. Tenn. Case No. 16-01893) on March 16, 2016. The Debtor and Kristin Locke were, and still remain, parties to a divorce proceeding pending before the Fourth Circuit Court for Davidson County, Tennessee styled Dr. Franklin Graham Locke v. Kristin Stegall Locke, Docket No. 15D-194. In the Divorce Proceeding, and prior to the filing of the bankruptcy case, an order was entered requiring the sale of certain personal property. Timothy G. Niarhos and Gray Waldron at Law Office of Timothy G. Niarhos serve as counsel. FREDDIE MAC: Fed. Cir. Affirms Dismissal of Former CFO's Lawsuit ---------------------------------------------------------------- Judges Timothy B. Dyk, Todd M. Hughes and Alvin A. Schall decided this week in Piszel v. U.S., No. 15-5100 (Fed. Cir.), to affirm a decision dismissing a lawsuit filed in the U.S. Court of Federal Claims by Freddie Mac's former CFO. The short story is that Freddie Mac hired Anthony S. Piszel as its CFO in 2006, and entered into a written employment agreement with him. That agreement said that if his employment were terminated without cause Freddie would make a lump-sum severance payment. Two weeks after placing Freddie into conservatorship in Sept. 2008, the Federal Housing Finance Agency directed Freddie's CEO to terminate Mr. Piszel's employment without cause and make no severance payment to Mr. Piszel. Freddie did as it was instructed. In 2014, Mr. Piszel sued the government. The complaint initiating Piszel v. U.S., Case No. 14-cv-00691 (Ct. Fed. Cl.), argues that FHFA's actions constitute a taking of Mr. Piszel's private property rights without just compensation in violation of the Fifth Amendment. The government says it took nothing from Mr. Piszel, he should have filed a breach of contract suit against Freddie, and, moreover, because he worked for a highly regulated business he should have known the government could change the terms of his employment at any time. The Federal Circuit disagreed with the government's position that Mr. Piszel lacked a cognizable Fifth Amendment property interest. The Federal Circuit also rejected the government's position that filing a breach of contract suit is a prerequisite to asserting a takings claim. The Federal Circuit rejected the government's suggestion that Mr. Piszel should have known his contract could be rewritten at any time. The Federal Circuit did fault Mr. Piszel for not filing a breach of contract suit against Freddie Mac in Virginia state court before the statute of limitation expired and for not alleging in his complaint filed in the Court of Federal Claims that a lawsuit in Virginia would have been futile. A copy of the ruling is available at http://goo.gl/cD4IMLat no change. Following advice related in an Amicus Brief from Pershing Square Capital Management, L.P., and other GSE shareholders in support of neither party, the Federal Circuit did not rely on Judge Lamberth's decision in Perry v. Lew that dismissed shareholder complaints filed in the District Court challenging the Net Worth Sweep. The three-judge panel didn't make a single reference to Judge Lamberth's decision in deciding Piszel v. U.S. FRESH & EASY: Committee Taps ASK LLP as Special Counsel ------------------------------------------------------- The official committee of unsecured creditors of Fresh & Easy, LLC seeks approval from the U.S. Bankruptcy Court for the District of Delaware to hire ASK LLP as its special counsel. The committee tapped the firm to investigate and prosecute potential avoidance actions. ASK will be compensated on a contingency fee basis in accordance with its agreement with the committee, which sets forth this contingency fee schedule: (a) For work done prior to the filing of an avoidance action, the firm will earn legal fees on a contingency basis of 15% of the cash value of any avoidance action recoveries and the cash equivalent value of any claim waiver obtained. (b) For work done after the filing of an avoidance action, the firm will earn legal fees on a contingency basis of 23% of the cash value of any avoidance action recoveries and the cash equivalent value of any claim waiver obtained. (c) For work done after the issuance of a judgment, the firm will earn legal fees on a contingency basis of 28% of the cash value of any avoidance action recoveries and the cash equivalent value of any claim waiver obtained. Joseph Steinfeld, Jr., co-managing principal of ASK, disclosed in a court filing that the firm is a "disinterested person" as defined in section 101(14) of the Bankruptcy Code. In response to the request for additional information set forth in the U.S. Trustee's Appendix B Guidelines, ASK disclosed that it did not agree to any variations from, or alternatives to, its standard or customary billing arrangements for the engagement. The firm further disclosed that its professionals did not vary their rate based on the geographic location of the bankruptcy case. ASK can be reached through: Joseph L. Steinfeld, Jr., Esq. ASK LLP 2600 Eagan Woods Drive, Suite 400 St. Paul, MN 55121 Tel: 651-406-9665 Fax: 651-406-9676 About Fresh & Easy Fresh & Easy, LLC, a chain of grocery stores in the Southwest United States, filed a Chapter 11 bankruptcy petition (Bankr. D. Del., Case No. 15-12220) on Oct. 30, 2015. The petition was signed by Peter McPhee, the chief financial officer. The Debtor estimated assets of $10 million to $50 million and liabilities of at least $100 million. Judge Christopher S. Sontchi is assigned to the case. The Debtor has engaged Cole Schotz P.C. as counsel, Epiq Bankruptcy Solutions, LLC, as claims and noticing agent, DJM Realty Services, LLC, and CBRE Group, Inc., as real estate consultants and FTI Consulting, Inc., as restructuring advisors. * * * The Debtor has undertaken the process of liquidating the estate's assets located at its retail locations and distribution center with the assistance of Hilco Merchant Resources, LLC, and Industrial Assets Corp., respectively, has engaged DJM Realty Services, LLC, and CBRE, Inc., to market its leasehold interests, and has recently engaged Hilco Streambank to assist with the disposition of its intellectual property. FTE NETWORKS: Reports $1.11 Million Net Loss for Second Quarter --------------------------------------------------------------- FTE Networks, Inc., filed with the Securities and Exchange Commission its quarterly report on Form 10-Q on Aug. 16, 2016. The filing of the Form 10-Q was delayed due to unforeseeable circumstances which caused a delay in the final review of the financial statements for the period ended June 30, 2016. FTE Networks reported a net loss attributable to common shareholders of $1.07 million on $3.16 million of revenues for the three months ended June 30, 2016, compared to a net loss attributable to common shareholders of $1.52 million on $4.07 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 attributable to common shareholders of $2.19 million on $5.25 million of revenues compared to a net loss attributable to common shareholders of $2.27 million on $7.41 million of revenues for the same period in 2015. As of June 30, 2016, FTE Networks had $9.69 million in total assets, $19.95 million in total liabilities, $437,380 in total temporary equity, and a total stockholders' deficiency of $10.69 million. As of June 30, 2016, the Company has an accumulated deficit of $14.9 million. In addition, the Company has working capital deficiencies of $4.2 million and $3.6 million as of June 30, 2016 and Dec. 31, 2015, respectively. Management plans to continue to raise additional funds through the sales of debt or equity securities until such time its operations will begin to produce a positive cash flow. However, there is no assurance that additional financing will be available when needed or that management will be able to obtain and close financing transactions on terms acceptable to the Company or whether the Company will become profitable and generate positive operating cash flow. If the Company is unable to raise sufficient additional funds, it will have to develop and implement a plan to further extend payables and reduce overhead until sufficient additional capital is raised to support further operations. There can be no assurance that such a plan will be successful. As of June 30, 2016, the Company has a backlog of approximately $33,000,000 of future orders to be fulfilled in the next twelve months. The Company's quarterly report on Form 10-Q is available from the SEC website at https://is.gd/8dGUVB About FTE Networks FTE Networks, formerly known as Beacon Enterprise Solutions Group, Inc., is a vertically integrated company with an international footprint. Since its inception, FTE Networks has steadily advanced its management, operational and technical capabilities to become a leading provider of services to the telecommunications and wireless sector with a focus on turnkey solutions. FTE Networks provides a comprehensive array of services centered on quality, efficiency and customer service. FTE Networks reported a net loss attributable to common shareholders of $3.63 million on $14.4 million of revenues for the year ended Sept. 30, 2015, compared to net income of $436,000 on $16.9 million of revenues for the year ended Sept. 30, 2014. FURR TRANSMISSIONS: Selling All Assets to Insider for $35K ---------------------------------------------------------- Furr Transmissions, Inc., asks the U.S. Bankruptcy Court for the Southern District of Mississippi to authorize the sale of substantially all assets outside of the ordinary course of business to insider Aubrey Furr for $35,000. The Debtor is a Mississippi corporation, which is engaged in a vehicle transmission repair business located in Ridgeland, Mississippi. The Debtor's assets consist of the following: a. Equipment; b. Fixtures; c. Goods; d. Inventory; e. Intellectual property of all types and kinds; f. Debtor's land and building; g. Furniture and furnishings; h. Various contract rights; and i. Accounts receivable. The first lien on the Debtor's real estate, land, buildings and improvements ("Real Estate") is held by Trustmark National Bank ("TNB"). The Internal Revenue Service ("IRS") holds tax liens upon and substantially all of the Debtor's remaining assets that existed pre-petition. The Debtor also owes ad valorem taxes on the assets. The IRS has started at least 2 tax sales in order to acquire ownership of the Debtor's assets and/or to close down the Debtor's business. Both times, the IRS declined to execute, as a final matter, upon its tax liens and it walked away from the tax/execution sales. For so many years, the Debtor has searched high and low for a possible purchaser of the business, or a manager to take over the business, or to acquire the business as a going concern. The search has continued post-petition. The Debtors met with their son and their accountant, and all agreed that it would be in the Debtor's best interest to sell the assets of the business, free and clear of liens, claims and pledges to the Debtor's son, Aubrey Furr, who will likely form a separate limited liability company to hold title to the assets. While Aubrey Furr is an insider, as he is the son of the Debtor's principals, his offer is good faith offer, and it represents not only the highest and best offer the Debtor has received to date, it represents the only viable offer that exists, or that has ever existed, under the circumstances. The offer of Aubrey Furr is to pay $35,000, in cash, for the assets, together with an assumption of the indebtedness owed to TNB and a "profit sharing agreement" with the junior creditors of the real estate and senior secured creditor as to the remaining assets that form part of the collateral of the IRS. Specifically, Aubrey Furr believes that a cash infusion into the business will be necessary to bring all of its expenses current, and to establish a small credit line for the business to buy parts and supplies at local vendors without having go out of state. The profit sharing is as follows: a. If, at the end of the first 12 months of operations, Aubrey Furr, or his designee, has earned sufficient income to pay all the operating expenses, all overhead, its secured debt to TNB and the Debtor will thereupon share those profits with senior lien holders on a straight dollar-for-dollar basis. The known tax lien holders currently are the IRS, Mississippi Department of Revenue ("MDOR") and TNB. The purchaser will retain enough funds for inventory at the end of each 12-month period to carry him into the next quarter whereupon he will have sufficient amounts of funds available to meet the operating expenses of the next year. This will continue for a period of 5 years; b. At the end of the 5-year period, the plan will terminate the purchaser will not owe anything to IRS or MDOR. It is the Debtor's contemplation that the ad valorem tax authorities will receive the vast bulk of the funds generated upon the sale. Attorneys for the Debtor: Craig M. Geno, Esq. Jarret P. Nichols, Esq. LAW OFFICES OF CRAIG M. GENO, PLLC 587 Highland Colony Parkway Ridgeland, MS 39157 Telephone: (601) 427-0048 Facsimile: (601) 427-0050 E-mail: cmgeno@cmgenolaw.com jnichols@cmgenolaw.com About Furr Transmissions Furr Transmissions, Inc., is a Mississippi corporation, which is engaged in a vehicle transmission repair business located in Ridgeland, Mississippi. Furr Transmissions sought the Chapter 11 protection (Bankr. S.D. Miss. Case No. 15-01473) on May 4, 2015. The Debtor estimated assets and liabilities in the range of $500,001 to $1,000,000. Craig M. Geno, Esq. of the Law Offices of Craig M. Geno, PLLC serves as the Debtor's counsel. The petition was signed by Patsy Brown Furr, vice president/secretary/registered agent/owner. GELTECH SOLUTIONS: Issues $175,000 Convertible Note to President ---------------------------------------------------------------- GelTech Solutions, Inc., issued Mr. Michael Reger, the Company's president and principal shareholder, a $175,000 7.5% secured convertible note in consideration for a $175,000 loan. The note, which was issued on Aug. 12, 2016, is convertible at $0.3351 per share and matures on Dec. 31, 2020. Repayment of the note is secured by all of the Company's assets including its intellectual property and inventory in accordance with a secured line of credit agreement between the Company and Mr. Reger. Additionally, the Company issued Mr. Reger 261,116 two-year warrants exercisable at $2.00 per share. All of the securities were issued without registration under the Securities Act of 1933 in reliance upon the exemption provided in Section 4(a)(2) and Rule 506(b) thereunder. About GelTech Jupiter, Fla.-based GelTech Solutions. Inc., is a Delaware corporation organized in 2006. The Company markets four products: (1) FireIce(R), a water soluble fire retardant used to protect firefighters, structures and wildlands; (2) Soil2O(R) 'Dust Control', its new application which is used for dust mitigation in the aggregate, road construction, mining, as well as, other industries that deal with daily dust control issues; (3) Soil2O(R), a product which reduces the use of water and is primarily marketed to golf courses, commercial landscapers and the agriculture market; and (4) FireIce(R) Home Defense Unit, a system for applying FireIce(R) to structures to protect them from wildfires. For the year ended June 30, 2015, the Company reported a net loss of $5.51 million on $800,365 of sales compared to a net loss of $7.11 million on $814,587 of sales for the year ended June 30, 2014. As of Dec. 31, 2015, Geltech had $1.96 million in total assets, $6.44 million in total liabilities and a total stockholders' deficit of $4.48 million. The Company's auditors Salberg & Company, P.A., in Boca Raton, Florida, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2015, citing that the Company has a net loss and net cash used in operating activities in of $2,638,580 and $2,146,501, respectively, for the six months ended Dec. 31, 2015, and has an accumulated deficit and stockholders' deficit of $43,285,883 and $4,482,416, respectively, at Dec. 31, 2015. These matters raise substantial doubt about the Company's ability to continue as a going concern. GENERAL PRODUCTS: Great Lakes No Longer Member of Committee ----------------------------------------------------------- The U.S. trustee for Region 9 on August 17 said Great Lakes Die Cast Corp. is no longer a member of the official committee of unsecured creditors appointed in the Chapter 11 cases of General Products Corp. and General Products Mexico LLC. The remaining members of the committee are: (1) Vernon Reizman RCM Industries, Inc. 3021 Cullerton Dr. Franklin Park, IL 60131 Phone: 847-455-1950, ext. 150 Fax: 847-455-1966 Email: vreizman@rcmindustries.com (2) Robert P. Vilsack General Aluminum Mfg. Co. 6065 Parkland Blvd. Cleveland, OH 44124 Phone: 440-947-2203 Fax: 440-947-2209 Email: Bob.Vilsack@PKOH.COM (3) Chris Seanor Bremen Castings, Inc. 500 N. Baltimore St. Bremen, IN 46506 Phone: 574-546-2411, Ext. 210 Email: cseanor@bcimail.com (4) Paul Mills Haggard & Stocking Associates, Inc. P.O. Box 240 Beech Grove, IL 46107 Phone: 317-788-4661 Fax 317-781-3282 Email: pmills@haggard-stocking.com (5) Jeffrey L. Turner Metal Technologies of Indiana, Inc. 1401 S. Grandstaff Drive Auburn, IN 46706 Phone: 260-920-2115 Fax: 260-925-4737 Email: jturner@metal-techonolgies.com About General Products General Products Corporation and General Products Mexico, LLC, both based in Livonia, MI, filed a Chapter 11 petition (Bankr. E.D. Mich. Case Nos. 16-49267 and 16-49269) on June 27, 2016. The Hon. Thomas J. Tucker (16-49267) and Walter Shapero (16-49269) preside over the case. Rachel L. Hillegonds, Esq. and John T. Piggins, Esq., at Miller Johnson, as bankruptcy counsel. In its petition, General Products Corporation estimated $50 million to $50 million in both assets and liabilities. General Products Mexico estimated $50,000 to $50 million in both assets and liabilities. The petition was signed by Andrew Masullo, president and chief executive officer. The Office of the U.S. Trustee appointed an official committee of unsecured creditors in the case. GENIUS BRANDS: Incurs $1.43 Million Net Loss in Second Quarter -------------------------------------------------------------- Genius Brands International, Inc., filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss applicable to common stockholders of $1.43 million on $176,332 of total revenues for the three months ended June 30, 2016, compared to a net loss attributable to common stockholders of $987,855 on $133,615 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 applicable to common stockholders of $3.16 million on $528,225 of total revenues compared to a net loss applicable to common stockholders of $1.62 million on $430,249 of total revenues for the six months ended June 30, 2015. As of June 30, 2016, Genius Brands $19.11 million in total assets, $6.42 million in total liabilities and $12.68 million in total stockholders' equity. Historically, the Company has incurred net losses. As of June 30, 2016, the Company had an accumulated deficit of $30,213,445 and total stockholders' equity of $12,689,220. At June 30, 2016, the Company had current assets of $5,496,506, including cash of $4,938,720 and current liabilities of $3,679,324, including certain trade payables of $925,000 to which the Company disputes the claim, resulting in working capital of $1,817,182. For the three months ended June 30, 2016 and 2015, the Company reported a net loss of $1,182,952 and $987,855, respectively. For the six months ended June 30, 2016 and 2015, the Company reported a net loss of $2,832,669 and $1,624,117, respectively, and reported net cash used by operating activities $324,208 and $1,896,298, respectively. During the six months ended June 30, 2016, the Company received gross proceeds of $2,000,000 pursuant to its distribution agreement with Sony Pictures Home Entertainment as well as $275,000 for the settlement of a distribution agreement. While the Company believes that its current cash balances will be sufficient to fund operations for the next twelve months, there can be no assurance that cash flows from operations will continue to improve in the near future. If the Company is unable to attain profitable operations and maintain positive operating cash flows, it may need to (i) seek additional funding, (ii) scale back its development plans, or (iii) reduce certain operations." The Company's quarterly report on Form 10-Q is available from the SEC website at https://is.gd/iqlG0p About Genius Brands Beverly Hills, Calif.-based Genius Brands International, Inc., creates and distributes music-based products which it believes are entertaining, educational and beneficial to the well-being of infants and young children under its brands, including Baby Genius and Little Genius. Genius Brands reported a net loss of $3.48 million on $907,983 of total revenues for the year ended Dec. 31, 2015, compared to a net loss of $3.72 million on $926,000 of total revenues for the year ended Dec. 31, 2014. GENIUS BRANDS: Issues Letter to Shareholders -------------------------------------------- Genius Brands International, Inc., distributed on Aug. 15, 2016, a letter to its shareholders. The letter discusses some specific second quarter 2016 financial highlights. "Today we released our 10Q filing for the 2nd quarter of 2016. We are on track to finish the year with material growth in revenues, asset creation, licensees, channel subscribers, and advertising revenue to our growing channel with Comcast currently in 21 million homes, KID GENIUS," the letter stated. A copy of the letter is available for free at https://is.gd/8JQxbG About Genius Brands Beverly Hills, Calif.-based Genius Brands International, Inc., creates and distributes music-based products which it believes are entertaining, educational and beneficial to the well-being of infants and young children under its brands, including Baby Genius and Little Genius. Genius Brands reported a net loss of $3.48 million on $907,983 of total revenues for the year ended Dec. 31, 2015, compared to a net loss of $3.72 million on $926,000 of total revenues for the year ended Dec. 31, 2014. As of Dec. 31, 2015, Genius Brands had $18.9 million in total assets, $4.74 million in total liabilities and $14.1 million in total equity. GERARD BOEH FLOWERS: Hires Stanley Kirshenbaum as Counsel --------------------------------------------------------- Gerard Boeh Flowers, Inc. asks for permission from the U.S. Bankruptcy Court for the Western District of Pennsylvania to employ Stanley A. Kirshenbaum as counsel. The Debtor requires Mr. Kirshenbaum to: (a) give the Debtor legal advice with respect to his powers and duties as Debtor-in-Possession in the continued operation of his business and the management of his property; (b) represent the Debtor in any actions filed pursuant to the estate's avoidance powers under the Bankruptcy Code, any objections to claims, or any other proceedings which arise in, or are related to, this case; (c) prepare on behalf of the Debtor necessary applications, answers, orders, reports, or other legal papers; (d) advise and represent the Debtor in matters of litigation and law and procedure which arise during the course of the bankruptcy case; and (e) perform all other legal services which may be necessary in the administration of this bankruptcy case. Mr. Kirshenbaum has agreed to represent the Debtors at the rate of $250 per hour. The Debtor shall be responsible for payment of costs. Mr. Kirshenbaum will also be reimbursed for reasonable out-of-pocket expenses incurred. The Debtor has paid Mr. Kirshenbaum a retainer of $5,000, which does not include the filing fee, which has been paid by Koren Boeh, an officer of the corporation. Mr. Kirshenbaum 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. Mr. Kirshenbaum can be reached at: Stanley A. Kirshenbaum, Esq. P.O. Box 8150 Pittsburgh, PA 15217 Tel: (412) 848-8692 E-mail: SAK@SAKLAW.COM Gerard Boeh Flowers, Inc., filed a Chapter 11 bankruptcy petition (Bankr. W.D. Pa. Case No. 16-22840) on August 1, 2016. The Debtor is represented by Stanley A. Kirshenbaum, Esq. GLEN ROBERT ANLIKER: Disclosure Statement Has Final Approval ------------------------------------------------------------ Bankruptcy Judge Janice Miller Karlin granted final approval to the disclosure statement explaining the Chapter 11 Plan of Reorganization by Glen Robert Anliker and Lorean Phyllis Anliker. The Plan documents were filed June 27, 2016. The Court on June 29, granted conditional approval to the Disclosure Statement. United States Trustee Samuel K. Crocker and Deere & Company have filed objections to confirmation of the Debtors' Chapter 11 Plan. However, no objections to the Disclosure Statement have been filed as of July 29, 2016, or at any time thereafter. Therefore, the Debtors' Disclosure Statement should be finally approved, the Court said. The hearing to consider final approval of the disclosure statement and confirmation of the plan was held August 1, 2016. The hearing on the confirmation of the Plan was continued by the Court to August 16, for feasibility testimony based upon the timely filing of the U.S. Trustee's Plan Objection and John Deere's Plan Objection. Glen Robert Anliker and Lorean Phyllis Anliker filed for Chapter 11 bankruptcy petition (Bankr. D. Kan. Case No. 15-41302) on December 30, 2015. They are represented by: David R. Klaassen, Esq. Attorney at Law 2649 6th Avenue Marquette, KS 67464 Tel: (785) 546-2358 Fax: (785) 546-2528 E-mail: drklaassen@ks-usa.net GLOBAL COMMODITY: Disclosure Statement Hearing Moved to Sept. 14 ---------------------------------------------------------------- U.S. Bankruptcy Judge Brian K. Tester said the hearing for Aug. 24, 2016, to consider the Disclosure Statement accompanying Global Commodity Group, Inc.'s Chapter 11 plan is rescheduled for Sept. 14 at 9:00 a.m. at the U.S. Bankruptcy Court, Jose V. Toledo Federal Building and U.S. Courthouse, 300 Del Recinto Sur, Courtroom No. 1, Second Floor, San Juan, Puerto Rico. Global Commodity Group, Inc., filed a Chapter 11 bankruptcy petition (Bankr. D.P.R. Case No. 15-08395) on Oct. 28, 2015, in San Juan, Puerto Rico. U.S. Bankruptcy Judge Brian K. Tester presides over the case. In its petition, the Debtor estimated under $50,000 in assets and under $10 million in liabilities. The petition was signed by Ramon L Nunez Freytes, president. The Debtor is represented by: Maria Soledad Lozada Figueroa, Esq. MS LOZADA LAW OFFICE PO BOX 9023888 San Juan, PR 00902 Tel: 787 520 6002 Fax: 787 520 6003 E-mail: lcdamslozada@gmail.com GLYECO INC: Incurs $1M Q2 Net Loss, Raises Going Concern Doubt -------------------------------------------------------------- Glyeco, Inc., filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $1.04 million on $1.31 million of net sales for the three months ended June 30, 2016, compared to a net loss of $1.07 million on $2.04 million of net sales for the three months ended June 30, 2015. For the six months ended June 30, 2016, the Company reported a net loss of $1.84 million on $2.75 million of net sales compared to a net loss of $2.05 million on $3.38 million of net sales for the same period during the prior year. As of June 30, 2016, Glyeco had $6.16 million in total assets, $1.29 million in total liabilities and $4.86 million in total stockholders' equity. "As of June 30, 2016, the Company has yet to achieve profitable operations and is dependent on its ability to raise capital from stockholders or other sources to sustain operations. These factors raise substantial doubt about the Company's ability to continue as a going concern. Ultimately, we plan to achieve profitable operations through the implementation of operating efficiencies at our facilities and increased revenue through the offering of additional products and the expansion of our geographic footprint through acquisitions, broader distribution from our current facilities and/or the opening of additional facilities." "Our plans to address these matters include achieving profitable operations, raising additional financing through offering our shares of the Company's capital stock in private and/or public offerings of our securities and through debt financing if available and needed. There can be no assurances, however, that the Company will be able to obtain any financings or that such financings will be sufficient to sustain our business operation or permit the Company to implement our intended business strategy. We plan to achieve profitable operations through the implementation of operating efficiencies at our facilities and increased revenue through the offering of additional products and the expansion of our geographic footprint through acquisitions, broader distribution from our current facilities and/or the opening of additional facilities," the Company said in the report. The Company's quarterly report on Form 10-Q is available from the SEC website at https://is.gd/QQ80gf About GlyEco, Inc. Phoenix, Ariz.-based GlyEco, Inc., is a green chemistry company formed to roll-out its proprietary and patent pending glycol recycling technology that transforms waste glycols, a hazardous material, into profitable green products. GlyEco reported a net loss available to common shareholders of $12.5 million on $7.36 million of net sales for the year ended Dec. 31, 2015, compared to a net loss available to common shareholders of $8.73 million on $5.89 million of net sales for the year ended Dec. 31, 2014. KMJ Corbin & Company LLP, in Costa Mesa, California, issued a "going concern" opinion in its report on the consolidated financial statements for the year ended Dec. 31, 2015, citing that the Company has had recurring losses from operations, has negative operating cash flows during the year ended Dec. 31, 2015, and has an accumulated deficit of $34,550,503 as of Dec. 31, 2015. These factors raise substantial doubt about the Company's ability to continue as a going concern. GRAYN COMPANY: Hires Brownstein as Counsel ------------------------------------------ Grayn Company, seeks authority from the U.S. Bankruptcy Court for the Central District of California to employ William H. Brownstein & Associates, P.C. as counsel to the Debtor. Grayn Company requires Brownstein to: (A) advise the Debtor regarding matters of bankruptcy law and concerning the requirements of the Bankruptcy Code, and Bankruptcy Rules relating to the administration of this case, and the operation of the Debtor’s estate as a debtor in possession; (B) represent the Debtor in proceedings and hearings in the court involving matters of bankruptcy law; (C) assistance in compliance with the requirements of the Office of the United States trustee; (D) provide the Debtor legal advice and assistance with respect to the Debtor’s powers and duties in the continued operation of the Debtor’s business and management of property of the estate; (E) assist the Debtor in the administration of the estate's assets and liabilities; (F) prepare necessary applications, answers, motions, orders, reports and/or other legal documents on behalf of the Debtor; (G) assist in the collection of all accounts receivable and other claims that the Debtor may have and resolve claims against the Debtor’s estate; (H) provide advice, as counsel, concerning the claims of secured and unsecured creditors, prosecution and/or defense of all actions; (I) prepare, negotiate, prosecute and attain confirmation of a plan of reorganization; (J) represent the Debtor in the pending appeal of the decision of the United States District Court for the Central District of California in the case entitled Attibury Grain vs. Grayn Company, et al., etc. Brownstein will be paid at these hourly rates: William H. Brownstein $495 Stanley Coleite $325 Brownstein will be paid a retainer in the amount of $35,000 plus the filing fees of $1,717. The Debtor agreed to pay $5,000 a month to be paid into the attorney-client trust account to be applied towards the retainer. Brownstein will also be reimbursed for reasonable out-of-pocket expenses incurred. William H. Brownstein, member of William H. Brownstein & Associates, P.C., 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. Brownstein can be reached at: William H. Brownstein, Esq. WILLIAM H. BROWNSTEIN & ASSOCIATES, P.C. 11755 Wilshire Boulevard, Suite 1250 Los Angeles, CA 90025-1540 Tel: (310) 458-0048 Fax: (310) 362-3212 Email: Brownsteinlaw.bill@gmail.com About Grayn Company Grayn Company, a California corporation, based in Vernon, CA, filed a Chapter 11 petition (Bankr. C.D. Cal. Case No. 16-19478 on July 18, 2016. The Hon. Sheri Bluebond presides over the case. William H Brownstein, Esq., at William H. Brownstein & Associates, P.C., 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 Vicente A. Cortez, president. GRIZZLY LAND: Trustee Taps Burns Figa as Special Counsel -------------------------------------------------------- The Chapter 11 trustee of Grizzly Land, LLC seeks approval from the U.S. Bankruptcy Court for the District of Colorado to hire Burns, Figa & Willas his special counsel. The firm will provide legal advice to the trustee regarding water law issues arising under Colorado law. Burns Figa's professionals and their hourly rates are: Stephen Leonhardt $390 Bernard Gehris $240 Associates $150 Stephen Leonhardt, Esq., at Burns Figa, disclosed in a court filing that the firm is a "disinterested person" as defined in section 101(14) of the Bankruptcy Code. The firm can be reached through: Stephen Leonhardt, Esq. Burns, Figa & Willas 6400 South Fiddlers Green Circle, Suite 1000 Greenwood Village, CO 80111 About Grizzly Land Grizzly Land LLC sought Chapter 11 protection (Bankr. D. Col. Case No. 16-11757) in Denver on March 1, 2016. Judge Thomas B. McNamara is assigned to the case. The petition was signed by Kirk A. Shiner, DVM, manager. The Debtor estimated $10 million to $50 million in assets and debt. Lee M. Kutner, Esq., at Kutner Brinen Garber, P.C., serves as counsel to the Debtor. GUIDED THERAPEUTICS: Change in Personnel Causes Form 10-Q Delay --------------------------------------------------------------- Guided Therapeutics, Inc., disclosed in a regulatory filing with the Securities and Exchange Commission that its quarterly report on Form 10-Q for the period ended June 30, 2016, could not be filed within the prescribed time period. During the second quarter of 2016, the Company experienced material turnover in its internal accounting personnel. The disruption caused by the change in personnel resulted in delays in the preparation and presentation of financial information. These delays contributed to the Company's inability to process and review the financial information required to file the quarterly report on Form 10-Q by the date required without incurring undue hardship and expense. The Company expects to file its Form 10-Q within the permitted extension period. About Guided Therapeutics Guided Therapeutics, Inc. (OTC BB and OTC QB: GTHP) -- http://www.guidedinc.com/-- is developing a rapid and painless test for the early detection of disease that leads to cervical cancer. The technology is designed to provide an objective result at the point of care, thereby improving the management of cervical disease. Unlike Pap and HPV tests, the device does not require a painful tissue sample and results are known immediately. GT has also entered into a partnership with Konica Minolta Opto to develop a non-invasive test for Barrett's Esophagus using the LightTouch technology platform. Guided Therapeutics reported a net loss attributable to common stockholders of $9.50 million on $42,000 of contract and grant revenue for the year ended Dec. 31, 2015, compared to a net loss attributable to common stockholders of $10.03 million on $65,000 of contract and grant revenue for the year ended Dec. 31, 2014. As of March 31, 2016, Guided Therapeutics had $2.36 million in total assets, $7.81 million in total liabilities and a total stockholders' deficit of $5.45 million. GUIDO DIMITRI: Plan to Pay Unsecured Claims in Full in 7 Years -------------------------------------------------------------- Guido and Pauli Dimitri filed with the US. Bankruptcy Court for the Southern District of California their plan of reorganization and disclosure statement on Aug. 8, 2016. The Debtors anticipate that holders of Allowed General Unsecured Claims, estimated to be $19,922, will receive a distribution of 100% of the amount of their claim by the expiration of the Plan. Secured claims will retain their security interests or otherwise will be paid in full, subject to refinancing of loans or under modified terms as agreed to by the Debtors and the secured claim holder. Administrative claims will be paid in full. The Debtors propose to pay their creditors periodically as funds become available from the orderly liquidation of available cash sources over a period not to exceed 84 months from the Plan effective date. The Plan provides for the continuation of the Debtors' business interests. A copy of the Disclosure Statement is available at: http://bankrupt.com/misc/casb14-02953-0288.pdf Guido and Pauli Dimitri filed for Chapter 11 bankruptcy protection (Bankr. S.D. Cal. Case No. 14-02953) on April 16, 2014. The Dimitris are an elderly couple living in Fallbrook, California. They operated a number of avocado groves and maintained active investments in the stock market. They also purchased real properties intended for both rental income and long-term investment or appreciation. The Hon. Margaret M. Mann presides over the case. The Dimitris are represented by: John L. Smaha, Esq. Gustavo E. Bravo, Esq. SMAHA LAW GROUP APC 2398 San Diego Avenue San Diego, CA 92110 Tel: 619-688-1557 Fax: 619-688-1558 E-mail: jsmaha@smaha.com GULF CHEMICAL: SiderAlloys Has $3M Offer; Auction on Sept. 7 ------------------------------------------------------------ Gulf Chemical & Metallurgical Corp. and Bear Metallurgical Co. ask the U.S. Bankruptcy Court for the Western District of Pennsylvania to authorize the sale of substantially all assets to highest and best offer at an auction to be opened by a $3 million offer from SiderAlloys North America, LLC. A hearing on the Motion is set for Sept. 13, 2016 at 11:00 a.m. Objection deadline is on Sept. 2, 2016 at 11:00 a.m. Over the past few years the Debtors have faced a number of challenges that led to substantial penalties and extremely expensive capital investment, further increasing losses. In late 2015 and early 2016, Rothschild Global Financial Advisory was retained to explore transactions for the sale of Gulf's and Bear's businesses. During that timeframe, Rothschild and the Debtors engaged in a thorough and extensive prepetition marketing process. Informed by that process, the Debtors concluded that it was in the best interests of the Debtors and their estates and creditors to sell their assets through a chapter 11 process. On the Petition Date, the Debtors filed the Motion which sought approval of certain sale and bid procedures for the sale of substantially all assets ("Original Bid Procedures"). On July 12, 2016, the Court entered an order granting the Bid Procedures Motion, pursuant to which the Court, among other things, approved the Original Bid Procedures. After the entry of the Original Procedures Order, the Debtors and their advisors continued to work diligently to identify potential purchasers for the Debtors' Assets. On Aug. 3, 2016, Bear and SiderAlloys, a Delaware limited liability company, entered into an asset purchase agreement ("Stalking Horse APA"), pursuant to which Bear agreed to sell the Bear assets to the Stalking Horse Bidder in exchange for $3,000,000 ("Stalking Horse Bid"), subject to higher or better bids. In general, the Stalking Horse Bidder has agreed to purchase substantially all of the Bear assets other than Bear's cash and cash equivalents or Bear's pre-closing accounts receivable, which Bear assets will be left behind for the Bear estate. On Aug. 4, 2016, the Debtors filed their expedited Revised Procedures Motion which sought, among other things, approval of the Stalking Horse Bidder as the stalking horse bidder for the Bear assets and approval of revised bid procedures ("Bid Procedures"). The Revised Bid Procedures revised the Original Bid Procedures to: (a) incorporate the concept of a stalking horse bidder; (b) require any qualified bids to exceed the Stalking Horse Bid by $150,000; and (c) to require subsequent $75,000 bid increments. On Aug. 9, 2016, the Court entered an order granting the Revised Bid Procedures Motion ("Procedures Orders"). The Bid Procedures contemplate the Debtors selling the Gulf assets and Bear assets to separate purchasers, or selling all of the Debtors' assets to a single purchaser, depending upon which method of sale will maximize value for all of the Debtors' stakeholders. In accordance with the Procedures Orders, the Debtors intend to hold an auction on Sept. 7, 2016 at which they will accept bids for (a) the Bear assets, (b) substantially all of Gulf's assets, and (c) combined bids for all of the Debtors' assets. Although Gulf has received some indications of interest, as of the filing of this Motion, there have been no binding offers for the Gulf Assets. However, Gulf will continue to market the Gulf Assets in accordance with the Bid Procedures. In order to enhance the value to the Debtors' estates, the Debtors request approval of the assumption and assignment of the executory contracts and unexpired leases to the successful bidder(s) upon the closing of the transaction contemplated under the APA and payment of the cure costs. The Buyer can be reached at: SIDERALLOYS NORTH AMERICA, LLC 600 Third Avenue, 2nd Floor New York, NY 10016 Attn: Paolo Rizzo E-mail: p.rizzo@sideralloys.com - and - Gerardo Annunziata Chief Financial Officer SiderAlloys International SA Via Cantonale 1 6900 Lugano Switzerland E-mail: annunziata@sideralloys.com The Buyer's attorneys: Gregory D. Cribbs BABST, CALLAND, CLEMENTS AND ZOMNIR, P.C. Two Gateway Center, 6th Floor 603 Stanwix Street Pittsburgh, PA 15222 E-mail: gcribbs@babstcalland.com Counsel for the Debtors: Sean D. Malloy, Esq. Michael J. Kaczka, Esq. Joshua A. Gadharf, Esq. Maria G. Carr, Esq. MCDONALD HOPKINS LLC 600 Superior Avenue, East, Suite 2100 Cleveland, OH 44114 Telephone: (216) 348-5400 Facsimile: (216) 348-5474 E-mail: smalloy@mcdonaldhopkins.com mkaczka@mcdonaldhopkins.com jgadharf@mcdonaldhopkins.com mcarr@mcdonaldhopkins.com - and - William E. Kelleher, Jr., Esq. Thomas D. Maxson, Esq. Helen S. Ward, Esq. COHEN & GRIGSBY, P.C. 625 Liberty Avenue, 5th Floor Pittsburgh, PA 15222 Telephone: (412) 297-4900 Facsimile: (412) 209-0672 E-mail: wkelleher@cohenlaw.com tmaxson@cohenlaw.com hward@cohenlaw.com The Debtor's financial advisors: ROTHSCHILD, INC. 23bis avenue de Messine Paris, France 75008 Attn: Guillaume Vigneras Pierre Boscher Vitaliy Lysenko E-mail: Guillaume.vigneras@rothschild.com Pierre.Boscher@Rothschild.com Vitaliy.Lysenko@Rothschild.com Counsel to the Official Committee of Unsecured Creditors: LOWENSTEIN SANDLER LLP 65 Livingston Avenue Roseland, NJ 07068 Attn: S. Jason Teele, Esq. Tel: (973) 597-2346 E-mail: steele@lowenstein.com About Bear Metallurgical and Gulf Chemical Bear Metallurgical Co. and Gulf Chemical & Metallurgical Corp. filed chapter 11 petitions (Bankr. W. D. Pa. Lead Case No. 16-22192) on June 14, 2016. The petitions were signed by Eric Caridroit, chief executive officer. The cases are assigned to Judge Jeffery A. Deller. At the time of the filing, Bear Metallurgical estimated assets and debts to be between $1 million and $10 million. Gulf Chemical estimated assets and debts to be between $100 million and $500 million. The Office of the United States Trustee appointed an official committee of unsecured creditors on June 30, 2016. The Committee retained Fox Rothschild LLP and Lowenstein Sandler LLP as counsel; and Province, Inc. as financial advisor. Counsel for Comilog Holdings, Gulf's parent company and Bear's indirect parent company: John M. Steiner, Esq. Patrick W. Carothers, Esq. LEECH TISHMAN FUSCALDO & LAMPL, LLC 525 William Penn Place, 28th Floor Pittsburgh, PA 15219 E-mail: jsteiner@leechtishman.com pcarothers@leechtishman.com HALCON RESOURCES: Receives Noncompliance Notice from NYSE --------------------------------------------------------- Halcon Resources Corporation was notified by the New York Stock Exchange on Aug. 12, 2016, that its average market capitalization and stockholders' equity was less than $50 million over a 30 trading-day period, which are the minimum values required for continued listing by the NYSE under Section 802.01B of the NYSE Listed Company Manual. The Company has 45 days from receipt of the notice to submit a plan to regain compliance. The Company expects to notify the NYSE within such time period that it intends to cure the deficiency and satisfy the minimum values required for continued listing upon consummation of its current restructuring plan. If the NYSE approves the Company's plan, the Company's shares will continue to be listed and traded on the NYSE during the 18 month cure period, subject to its compliance with other NYSE continued listing standards. The notice has no immediate impact on the listing of the Company's common stock, which will continue to be listed and traded on the NYSE during this period, subject to the Company's compliance with other listing standards, under the symbol "HK." About Halcon Resources Halcon Resources Corporation is an independent energy company engaged in the acquisition, production, exploration and development of onshore oil and natural gas properties in the United States. Halcon Resources and 21 of its subsidiaries each filed a voluntary petition under Chapter 11 of the Bankruptcy Code (Bankr. D. Del. Case Nos. 16-11724 through 16-11745) on July 27, 2016. The petitions were signed by Stephen W. Herod as president. The Debtors listed assets of $2.84 billion and debts of $3.14 billion as of March 31, 2016. The Debtors have hired Young Conaway Stargatt & Taylor, LLP and Weil, Gotshal & Manges LLP as co-counsel; PJT Partners LP as investment banker; Alvarez & Marsal North America, LLC as restructuring advisor; and Epiq Bankruptcy Solutions, LLC as claims, noticing and solicitation agent. HAMILTON TRUCKING: Plan Confirmation Hearing Set for Sept. 15 ------------------------------------------------------------- Bankruptcy Judge Jerry A. Funk granted conditional approval to the disclosure statement accompanying the small business Chapter 11 Plan of Hamilton Trucking LLC. Creditors and other parties in interest shall file with the court their written ballots accepting or rejecting the Plan no later than 14 days before the date of the Confirmation Hearing. Sept. 15, 2016, is fixed for the hearing on final approval of the disclosure statement and for the hearing on confirmation of the plan. The hearing will be held at 1:30 p.m., in 4th Floor Courtroom 4D, 300 North Hogan Street, Jacksonville, Florida. About Hamilton Trucking Hamilton Trucking, LLC, filed a Chapter 11 bankruptcy petition (Bankr. M.D. Fla. Case No. 16-01899) on May 20, 2016, and is represented by Taylor J. King, Esq., at the Law Offices of Mickler & Mickler. HAPPYWORKS DAY CARE: 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 Happyworks Day Care, Inc. Happyworks Day Care, Inc. is a non-profit, low cost, quality childcare services provider for low income families living in the inner city of Cleveland since 1986. The business ran smoothly and profitably from 1986 until 2014 under the general management of Judith M. Ballinger, its sole owner and former general manager. In early 2014, Ms. Ballinger suffered a stroke and heart attack and was confined to a hospital bed for most of the calendar year. In her absence, Happyworks was run by Ms. Ballinger granddaughter, who lacked the necessary skills to operate the business properly. On July 9, 2014, Zions First National Bank, the debtor primary lender, filed a collection and foreclosure proceeding [Cuyahoga County Court of Common Pleas Case No. CV-14-829494]. A judgment was taken in that proceeding on August 12, 2015 and a sheriff's sale of one of the two buildings out of which the debtor conducts its business was scheduled for July 11, 2016. To stay the sheriff's sale, Happyworks Day Care filed a Chapter 11 petition (Bankr. N.D. Ohio Case No. 16-13769) on July 9, 2016. Judge Jessica Price Smith presides. Richard H. Nemeth, Esq., at Nemeth & Associates, LLC, serves as counsel to the Debtor. HCSB FINANCIAL: Deregisters 9.21 Million Common Shares ------------------------------------------------------ HCSB Financial Corporation filed a post-effective Amendment No. 1 to its Registration Statement File No. 333-210804 to disclose the number of shares of its common stock, par value $0.01 per share, being deregistered and to deregister said shares of Common Stock. HCSB Financial, the holding company for Horry County State Bank, filed the Registration Statement registering up to 23,384,301 shares of Common Stock in connection with a follow-on offering to legacy shareholders, employees, and others in the Bank's community. The Securities and Exchange Commission declared the Registration Statement effective on May 31, 2016. The Company terminated the follow-on offering of the Common Stock on June 30, 2016. In connection with the follow-on offering, the Company issued 14,167,600 shares of Common Stock. Pursuant to the undertaking in the Registration Statement to remove from registration by means of a post-effective amendment any of the securities registered that remain unsold at the termination of the follow-on offering, the Company filed the Post-Effective Amendment No. 1 to the Registration Statement to deregister 9,216,701 shares of Common Stock, which are all of the shares remaining unsold under the Registration Statement. About HCSB Financial Loris, South Carolina-based HCSB Financial Corporation was incorporated on June 10, 1999, to become a holding company for Horry County State Bank. The Bank is a state chartered bank which commenced operations on Jan. 4, 1988. From its 13 branch locations, the Bank offers a full range of deposit services, including checking accounts, savings accounts, certificates of deposit, money market accounts, and IRAs, as well as a broad range of non-deposit investment services. During the third quarter of 2011, the Bank closed its Covenant Towers branch located at Myrtle Beach. All deposits were transferred to the Bank's Myrtle Beach branch and the Bank does not expect any disruption of service in that market for its customers. HCSB Financial reported a net loss available to common shareholders of $1.75 million on $13.7 million of total interest income for the year ended Dec. 31, 2015, compared to a net loss available to common shareholders of $1.40 million on $16.09 million of total interest income for the year ended Dec. 31, 2014. As of June 30, 2016, the Company had $382 million in total assets, $345 million in total liabilities, and $37.3 million in total shareholders' equity. Elliott Davis Decosimo, LLC, in Columbia, South Carolina, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2015, citing that the Company has suffered recurring losses that have eroded regulatory capital ratios and the Company's wholly owned subsidiary, Horry County State Bank, is under a regulatory Consent Order with the Federal Deposit Insurance Corporation (FDIC) that requires, among other provisions, capital ratios to be maintained at certain levels. As of December 31, 2015, the Company's subsidiary is considered significantly undercapitalized based on its regulatory capital levels. These considerations raise substantial doubt about the Company's ability to continue as a going concern. The Company also has deferred interest payments on its junior subordinated debentures for 20 consecutive quarters as of December 31, 2015. Under the terms of the debentures, the Company may defer payments for up to 20 consecutive quarters without creating a default. Payment for the 20th quarterly interest deferral period was due in March 2016. The Company failed to pay the deferred and compounded interest at the end of the deferral period, and the trustees of the corresponding trusts, have the right, after any applicable grace period, to exercise various remedies, including demanding immediate payment in full of the entire outstanding principal amount of the debentures. The balance of the debentures and accrued interest as of December 31, 2015 were $6,186,000 and $901,000, respectively. These events also raise substantial doubt about the Company's ability to continue as a going concern as of Dec. 31, 2015. HERCULES OFFSHORE: Hogan, Kasowitz Represent Equity Committee ------------------------------------------------------------- The Official Committee of Equity Holders of Hercules Offshore, Inc. and its debtor affiliates submits with the U.S. Bankruptcy Court for the District of Delaware a verified statement pursuant to Rule 2019 of the Federal Rules of Bankruptcy Procedure. On June 20, 2016, the U.S. Trustee for the District of Delaware, pursuant to Section 1102(a)(1) of the Bankruptcy Code, appointed three members to the Equity Committee and the nature and amount of all disclosable economic interests, as defined in Bankruptcy Rule 2019(a)(1), held by each member in relation to the Debtors as of the Equity Committee formation date: a. Centerbridge Credit Partners Master Fund, LP 375 Park Avenue, 11th Floor New York, NY 10152 -- 1,710,352 shares of common stock of Hercules Offshore, Inc. b. Archer Capital Management, LP 570 Lexington Avenue, 40th Floor New York, NY 10022 -- 1,710,352 shares of common stock of Hercules Offshore, Inc. c. Lawrence Callahan 600 Ashmont Drive Olivette, MO 63132 -- 26,000 shares of common stock of Hercules Offshore, Inc. The Equity Committee is represented by: Garvan F. McDaniel, Esq. HOGAN McDANIEL 1311 Delaware Avenue Wilmington, DE 19806 Tel: (302) 656-7540 E-mail: gfmcdaniel@dkhogan.com -- and -- David S. Rosner, Esq. Andrew K. Glenn, Esq. Howard W. Schub, Esq. Matthew B. Stein, Esq. KASOWITZ, BENSON, TORRES FRIEDMAN LLP 1633 Broadway New York, NY 10019 Tel: (212) 506-1700 E-mail: DRosner@kasowitz.com AGlenn@kasowitz.com HSchub@kasowitz.com MStein@kasowitz.oom About Hercules Offshore Hercules Offshore, Inc., and its debtor and non-debtor subsidiaries are providers of shallow-water drilling and marine services to the oil and natural gas exploration and production industry globally. Hercules Offshore and 13 of its subsidiaries each filed a Chapter 11 bankruptcy petition (Bankr. D. Del. Proposed Lead Case No. 16-11385) on June 5, 2016. The petition was signed by Troy L. Carson as vice president. The Debtors reported total assets of $1.06 billion and total debts of $521.37 million as of March 31, 2016. The Debtors have hired Akin Gump Srauss Hauer & Feld LLP as general bankruptcy counsel and Morris, Nichols, Arsht & Tunnell LLP as co-counsel. HERNAN VELEZ JUAN: Disclosure Statement Hearing Set for Sept. 27 ---------------------------------------------------------------- U.S. Bankruptcy Judge Mildred Caban Flores set a hearing to approve the disclosure statement explaining Hernan Velez Juan's Chapter 11 plan is scheduled for Sept. 27, 2016 at 9:00 a.m. At the hearing, the Court will consider and rule upon the adequacy of the disclosure statement and the information contained therein, as well as objections to the disclosure statement, and such other matters as may properly come before the court. Objections to the form and content of the disclosure statement should be in writing and filed with the court and served upon parties in interest at their address of record not less than 14 days prior to the hearing. Objections not timely filed and served will be deemed waived. Hernan Velez Juan filed a Chapter 11 bankruptcy petition (Bankr. D.P.R. Case No. 15-07225) on Sept. 18, 2015. HMF GOLF: Seeks 150-Day Extension to Time to File Plan ------------------------------------------------------ HMF Golf, Inc., asks the U.S. Bankruptcy Court for the Western District of Pennsylvania to extend the exclusive period within which it may file a plan of reorganization for an additional 150 days. The Debtor owns real estate located at 314 Chestnut Street, in Reno, Pennsylvania, known as Wanango Golf Club, which includes an eighteen-hole golf course, club house and ancillary buildings which is operated by related Debtor WGC, Inc. The Debtor relates that it is in negotiations with an interested party who has expressed a serious interest in purchasing the golf course as a going concern. The Debtor asserts that successful completion of the negotiations should result in substantial value being paid to creditors. The Debtor tells the Court that the negotiations are both complex and time consuming and that the Debtor requires additional time to finalize the negotiations. The Debtor contends that the results of those negotiations will control the formulation of Debtor’s plan in the case. HMF Golf Inc. is represented by: Brian C. Thompson, Esq. THOMPSON LAW GROUP, P.C. 125 Warrendale Bayne Rd. Suite 200 Warrendale, PA 15086 Telephone: (724) 799-8404 Email: bthompson@thompsonattorney.com About HMF Golf Inc. HMF Golf, Inc. filed a chapter 11 petition (Bankr. W.D. Pa. Case No. 16-10346) on April 13, 2016. The petition was signed by Todd McLaughlin, president. The Debtor is represented by Brian C. Thompson, Esq., at Thompson Law Group, P.C. The Debtor estimated assets and liabilities at $500,001 to $1 million at the time of the filing. HOWSE IMPLEMENT: Hires Reich Brothers as Asset Consultant --------------------------------------------------------- Howse Implement Company, Inc., seeks authority from the U.S. Bankruptcy Court for the Southern District of Mississippi to employ Reich Brothers, LLC as consultant, broker, and investment banker to the Debtor. Howse Implement requires Reich Brothers to assist the Debtor with a thorough and focused marketing campaign designed to offer and sell the Debtor's assets both on a bulk and piece meal basis via a phased sale program: -- Phase 1 will immediately monetize surplus and obsolete assets, including implement and related parts inventory. -- Phase 2 will include the going concern or bulk sale of the remaining enterprise assets. The sale program will target end-users, other related implement manufacturing and supply companies, alternative industrial entities and/or equipment dealers to purchase and re-utilize the subject assets. -- Phase 3 will include an on-site and simultaneous WebCast Auction Sale of the remaining assets broken down in different lots and categories to reel in a potential going concern or bulk buyer. At auction, if still available, the real property will be sold with a reserve price. The Sales Agent will not charge the Company any seller's commission. The Sales Agent sole compensation will be the payment of the Buyer's Premium payable by the buyers of the assets according to this schedule: Real Property - 6% (includes the payment to any cooperating broker); Machinery & Equipment - 15% Inventory - 15% Accounts Receivable - 10% (if the A/R does not sell, the Sales Agent is amenable to collecting out the receivables on a commission basis.) Intellectual Property - 7.5% To the best of the Debtor's knowledge, the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtors and their estates. Reich Brothers can be reached at: Adam M. Reich Reich Brothers LLC 10618 Pico Blvd Los Angeles, CA 90064 Tel: (310) 248-2979 Fax: (213) 383-5985 About Howse Implement Howse Implement Company, Inc., based in Laurel, MS, filed a Chapter 11 petition (Bankr. S.D. Miss. Case No. 14-51331) on August 25, 2014. The Hon. Katharine M. Samson presides over the case. Craig M. Geno, Esq., at Law Offices of Craig M. Geno, PLLC, 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 Benjamin T. Howse, president/director. HUTCHESON MEDICAL: Trustee Taps Poole Huffman as Special Counsel ---------------------------------------------------------------- The Chapter 11 trustee of Hutcheson Medical Center, Inc. seeks approval from the U.S. Bankruptcy Court for the Northern District of Georgia to hire Poole Huffman, LLC as his special counsel. Ronald Glass, the bankruptcy trustee, tapped the firm to assist him in settling self-insured employee medical claims. The trustee estimates that there are more than $2.8 million in unpaid medical claims against the Debtor's estate that accrued during the period November 20, 2014 to May 31, 2016. Poole Huffman will receive a flat fee of $50,000 to be paid in two installments. The trustee proposes to pay an initial $25,000 upon approval of the firm's employment, and $25,000 upon completion of its services. Daniel Greene, Esq., at Poole Huffman, disclosed in a court filing that the firm is "disinterested" as defined in section 101(14) of the Bankruptcy Code. Poole Huffman can be reached through: Daniel Greene, Esq. Poole Huffman, LLC 315 W. Ponce de Leon Ave., Suite 344 Decatur, GA 30030 Tel: (404) 373-4008 Fax: (888) 709-5723 About Hutcheson Medical Center Hutcheson Medical Center, Inc., operates the 179-bed hospital and related ancillary facilities, including, without limitation, a skilled nursing home and an ambulatory surgery center, located in Ft. Oglethorpe, Georgia, known as Hutcheson Medical Center. HMC leases the land and buildings that comprise the Medical Center from The Hospital Authority of Walker, Dade and Catoosa Counties. HMC and Hutcheson Medical Division, Inc., sought Chapter 11 bankruptcy protection (Bankr. N.D. Ga. Case Nos. 14-42863 and 14-42864) in Rome, Georgia, on Nov. 20, 2014. The cases are jointly administered under Case No. 14-42863. The cases have been assigned to the Honorable Paul W. Bonapfel. The Debtors are represented by Ashley Reynolds Ray, Esq., and J. Robert Williamson, Esq., at Scroggins and Williamson, in Atlanta, Georgia. HMC disclosed $32.8 million in assets and $52.9 million in liabilities as of the Chapter 11 filing. ICAGEN INC: Posts $1.18M Net Loss in Second Quarter --------------------------------------------------- Icagen, Inc., filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $1.18 million on $1.15 million of sales for the three months ended June 30, 2016, compared to a net loss of $1.32 million on $95,158 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 $2.29 million on $2.05 million of sales compared to a net loss of $2.75 million on $125,800 of sales for the six months ended June 30, 2015. As of June 30, 2016, Icagen had $11.7 million in total assets, $12.05 million in total liabilities, and a $334,057 total stockholders' deficit. "We have a history of annual losses from operations since inception and we have primarily funded our operations through sales of our unregistered equity securities and cash flows generated from government contracts and grants and more recently from commercial customers and the settlement of a lawsuit. We are generating funds from commercial customers and government grants, however, we continue to experience losses and will need to raise additional funds to meet our working capital requirements, despite this we are dependent upon the outcome of settlement discussions we are having in our lawsuits. We believe that our existing cash and cash equivalents will not be sufficient to meet our anticipated cash needs for the next twelve months. We will need to generate additional revenue from operations and/or obtain additional financing to pursue our business strategy, to respond to new competitive pressures or to take advantage of opportunities that may arise. These factors raise substantial doubt about our ability to continue as a going concern. RBSM LLP, in New York, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2015, citing that the Company has incurred recurring operating losses, which has resulted in an accumulated deficit of approximately $22.143 million at Dec. 31, 2015. These conditions among others raise substantial doubt about the Company's ability to continue as a going concern. A full-text copy of the Form 10-Q is available for free at https://is.gd/omDYJu About Icagen Icagen, Inc., formerly known as XRpro Sciences, Inc., is a biopharmaceutical company, focuses on the discovery, development, and commercialization of orally-administered small molecule drugs that modulate ion channel targets. Its drug candidates include ICA-105665, a small molecule compound that targets specific KCNQ ion channels for the treatment of epilepsy and pain, which is in Phase II clinical trial stage; and a compound that targets the sodium channel Nav1.7 for the treatment of pain, which is in Phase I clinical trial stage. Icagen reported a net loss applicable to common stock of $8.72 million on $1.58 million of sales for the year ended Dec. 31, 2015, compared to a net loss applicable to common stock of $569,288 on $541,794 of sales for the year ended Dec. 31, 2014. INDEPENDENCE TAX II: Had $210K Q1 Loss, Raises Going Concern Doubt ------------------------------------------------------------------ Independence Tax Credit Plus L.P. II filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $220,000 on $209,000 of total revenues for the three months ended June 30, 2016, compared to a net loss of $81,400 on $221,000 of total revenues for the three months ended June 30, 2015. As of June 30, 2016, the Partnership had $2.28 million in total assets, $17.37 million in total liabilities and a total partners' deficit of $15.08 million. At June 30, 2016, the Partnership's liabilities exceeded assets by $15.1 million and for the three months ended June 30, the Partnership had net loss of $220,000. These factors raise substantial doubt about the Partnership's ability to continue as a going concern. Partnership management fees of approximately $1.86 million will be payable out of sales or refinancing proceeds only to the extent of available funds after payments on all other Partnership liabilities have been made and after the Limited Partners have received a 10% return on their capital contributions. As such, the General Partner cannot demand payment of these deferred fees beyond the Partnership's ability to pay them. In addition, where the Partnership has unpaid partnership management fees related to sold properties, such management fees are written off and recorded as capital contributions. The Company's quarterly report on Form 10-Q is available from the SEC website at https://is.gd/S4voZK About Independence Tax Credit Plus Based in New York, Independence Tax Credit Plus L.P. II was organized on Feb. 11, 1992, and commenced its public offering on Jan. 19, 1993. The general partner of the Partnership is Related Independence Associates L.P., a Delaware limited partnership. The general partner of Related Independence Associates L.P. is Related Independence Associates Inc., a Delaware Corporation. The ultimate parent of Related Independence Associates L.P. is Centerline Holding Company. The Partnership's business is primarily to invest in other partnerships owning leveraged apartment complexes that are eligible for the low-income housing tax credit enacted in the Tax Reform Act of 1986, some of which may also be eligible for the historic rehabilitation tax credit. The Partnership is in the process of developing a plan to dispose of all of its investments. INDEPENDENCE TAX IV: Incurs $107,000 Net Loss in First Quarter -------------------------------------------------------------- Independence Tax Credit Plus L.P. IV filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $106,743 on $430,405 of total revenues for the three months ended June 30, 2016, compared to net income of $4.87 million on $420,135 of total revenues for the three months ended June 30, 2015. As of June 30, 2016, the Partnership had $1.68 million in total assets, $5.84 million in total liabilities and a total partners' deficit of $4.16 million. The Partnership has unconsolidated cash reserves of approximately $448,000 at June 30, 2016. That amount is considered sufficient to cover the Partnership's day to day operating expenses, excluding fees to the General Partner, for at least the next year. The Partnership's operating expenses, excluding the Local Partnerships' expenses and related party expenses amounted to approximately $93,000 for the three months ended June 30, 2016. Management believes the mitigating factors enable the Partnership to continue as a going concern. The Company's quarterly report on Form 10-Q is available from the SEC website at https://is.gd/zRg9d4 About Independence Tax IV Independence Tax Credit Plus L.P. IV is a limited partnership which was formed under the laws of the State of Delaware on Feb. 22, 1995. The general partner of the Partnership is Related Independence L.L.C., a Delaware limited liability company. Centerline Holding Company was the ultimate parent of Centerline Affordable Housing Advisors LLC, the sole member of the Manager of the General Partner. On June 12, 2013, Centerline and an affiliate of Hunt Companies, Inc. entered into an agreement and plan of merger. On Nov. 14, 2013, the shareholders of Centerline approved the acquisition of Centerline by an affiliate of Hunt. On April 15, 2015, Alden Torch Financial LLC, a newly formed limited liability company, became the indirect owner of 100% of the equity interests in Centerline. Since April 15, 2015, ATF has been the ultimate parent and indirect owner of 100% of the equity interest in CAHA. Prior to April 15, 2015, Hunt had been the ultimate majority equity owner of CAHA. Independence Tax reported net income attributable to the Partnership of $6.68 million on $1.70 million of total revenues for the year ended March 31, 2016, compared to net income attributable to the Partnership of $10.8 million on $1.68 million of total revenues for the year ended March 31, 2015. At March 31, 2016, the Partnership's liabilities exceeded assets by approximately $4.05 million and for the year ended March 31, 2016, the Partnership recognized net income of approximately $10.2 million, including gain on sale of properties of approximately $10.6 million. The Partnership said these factors raise substantial doubt about its ability to continue as a going concern. INTERLEUKIN GENETICS: Incurs $2.08 Million Net Loss in 2nd Quarter ------------------------------------------------------------------ Interleukin Genetics, Inc., filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $2.08 million on $590,000 of total revenue for the three months ended June 30, 2016, compared to a net loss of $2.16 million on $376,000 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 $3.60 million on $1.55 million of total revenue compared to a net loss of $4 million on $779,000 of total revenue for the same period last year. As of June 30, 2016, Interleukin had $2.65 million in total assets, $8.27 million in total liabilities and a total stockholders' deficit of $5.62 million. As of June 30, 2016, the Company had cash and cash equivalents of $1.3 million. The Company has experienced net operating losses since its inception through June 30, 2016. The Company had net losses of $7.9 million and $6.3 million for the years ended Dec. 31, 2015, and 2014, respectively, and $3.6 million for the six months ended June 30, 2016, contributing to an accumulated deficit of $132.6 million as of June 30, 2016. The Company continues to take steps to reduce genetic test processing costs. Cost savings are primarily achieved through test process improvements. Management believes that the current laboratory space is adequate to process high volumes of genetic tests. The Company's quarterly report on Form 10-Q is available from the SEC website at https://is.gd/4jBGy5 About Interleukin Waltham, Mass.-based Interleukin Genetics, Inc., is a personalized health company that develops unique genetic tests to provide information to better manage health and specific health risks. Interleukin reported a net loss of $7.89 million on $1.44 million of total revenue for the year ended Dec. 31, 2015, compared to a net loss of $6.33 million on $1.81 million of total revenue for the year ended Dec. 31, 2014. Grant Thornton LLP, in Boston, Massachusetts, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2015, citing that the Company has incurred recurring losses from operations and has an accumulated deficit that raise substantial doubt about the Company's ability to continue as a going concern. JCHS CORP: Latest Plan Increases Unsecureds' Recovery to 30% ------------------------------------------------------------ Unsecured creditors of JCHS Corporation will get 30% of their claims, according to the company's latest Chapter 11 plan of reorganization filed with the U.S. Bankruptcy Court for the Western District of Tennessee. The plan filed on August 9 proposes to pay Class 3 creditors 30% of their unsecured non-priority claims in cash within 25 years of the effective date of the plan, or in full as the company has funds. JCHS' initial plan filed on June 3 proposed to pay Class 3 creditors only 10% of their claims. A copy of the latest disclosure statement is available for free at https://is.gd/Pmf4Lt About JCHS Corp. JCHS Corporation operates in Shelby County, Tennessee, as Greenline Landscape. It performs landscape, lawn services, holiday decorating and storage. JCHS filed a Chapter 11 petition (Bankr. W.D. Tenn. Case No. 14-31752) on November 18, 2014. KALOBIOS PHARMACEUTICALS: Kapil Dhar Reports 6.37% Stake -------------------------------------------------------- In a Schedule 13G filed with the Securities and Exchange Commission, Kapil Dhar, Sable Fiduciary Limited and Cortleigh Limited disclosed that as of June 30, 2016, they beneficially owned 949,752 shares of common stock of KaloBios Pharmaceuticals, Inc., representing 6.37 percent of the shares outstanding. A full-text copy of the regulatory filing is available at: https://is.gd/xxyJtT About KaloBios Pharmaceuticals Based in South San Francisco, Calif., KaloBios Pharmaceuticals, Inc., is a biopharmaceutical company focused on the development of monoclonal antibody therapeutics. KaloBios Pharmaceuticals (Nasdaq: KBIO) on Dec. 29, 2015, filed a voluntary petition for bankruptcy protection under Chapter 11 of Title 11 of the United States Bankruptcy Code. The filing was made in the U.S. Bankruptcy Court for the District of Delaware (Case No. 15-12628). The Company was represented by Eric D. Schwartz of Morris, Nichols, Arsht & Tunnell. Six months after its bankruptcy filing, KaloBios emerged from Chapter 11 bankruptcy and has also acquired the rights from Savant Neglected Diseases LLC to develop benznidazole for the treatment of Chagas disease. KALOBIOS PHARMACEUTICALS: Reorganization Delays Form 10-Q Filing ---------------------------------------------------------------- KaloBios Pharmaceuticals, Inc., filed a Notification of Late Filing on Form 12b-25 with respect to its quarterly report on Form 10-Q for the period ended June 30, 2016. The Company was unable to file its Quarterly Report within the prescribed time period or within the five day extension period permitted by the applicable rules of the Securities and Exchange Commission without unreasonable effort and expense. As previously disclosed, on Dec. 29, 2015, the Company filed a voluntary petition for bankruptcy protection under Chapter 11 of Bankruptcy Code. The filing was made in the United States Bankruptcy Court for the District of Delaware (Case No. 15-12628). In addition, as previously disclosed, on June 16, 2016, the Bankruptcy Court entered an order confirming the Company's Second Amended Plan of Reorganization, dated May 9, 2016. During most of the period ended June 30, 2016, the Company operated its business as debtor in possession pursuant to sections 1107(a) and 1108 of the Bankruptcy Code. On June 30, 2016, the Plan became effective and the Company emerged from its Chapter 11 bankruptcy proceedings. In connection with the Company's bankruptcy proceedings, the Company embarked on a reorganization program and, as previously disclosed, entered into a Debtor in Possession Credit and Security Agreement and a Securities Purchase Agreement in respect of bankruptcy exit financing and consummated the bankruptcy exit filing. The Company has also dedicated its limited resources to, among other things, negotiating with those parties with interests in the bankruptcy proceedings, satisfying its obligations with the Bankruptcy Court and those parties with interests in the bankruptcy proceedings and, as authorized by the Plan and the Confirmation Order, entering into an Agreement for the Manufacture, Development and Commercialization of Benznidazole for Human Use. The Company's reorganization program and efforts to enter into the MDC Agreement placed enormous strain on its limited human and financial resources. As a result, the Company has been unable to dedicate financial and human resources to the preparation of the Quarterly Report and has determined that it is unable to timely file its Quarterly Report without unreasonable effort or expense. "The Company's financial statements for the quarterly period ended June 30, 2016 have not been completed because a substantial amount of time and effort of the Company's financial and accounting staff has and continues to be dedicated to the bankruptcy proceedings and related matters. However, the Company expects that its results of operations for the quarterly period ended June 30, 2016 will reflect a significant change compared with the Company's results of operations for the corresponding period for the last fiscal year. During 2015, the Company's results of operations were impacted by (i) a pause in enrollment in the Phase 2 cohort expansion phase of its ongoing clinical study of lenzilumab in certain hematologic malignancies, (ii) a large reduction in the Company's workforce in connection with a plan to reduce operating costs, and (iii) disruptions in the management and operations of the Company resulting from the arrest of the Company's former Chairman and Chief Executive Officer. In addition, during the first half of 2016, the Company's results of operations were impacted by the bankruptcy proceedings and its operation as a debtor-in-possession and the Company's entrance into and payments under the MDC Agreement." About KaloBios Pharmaceuticals Based in South San Francisco, Calif., KaloBios Pharmaceuticals, Inc., is a biopharmaceutical company focused on the development of monoclonal antibody therapeutics. KaloBios Pharmaceuticals (Nasdaq: KBIO) on Dec. 29, 2015, filed a voluntary petition for bankruptcy protection under Chapter 11 of Title 11 of the United States Bankruptcy Code. The filing was made in the U.S. Bankruptcy Court for the District of Delaware (Case No. 15-12628). The Company was represented by Eric D. Schwartz of Morris, Nichols, Arsht & Tunnell. Six months after its bankruptcy filing, KaloBios emerged from Chapter 11 bankruptcy and has also acquired the rights from Savant Neglected Diseases LLC to develop benznidazole for the treatment of Chagas disease. KANKAKEE COUNTY, IL: Moody’s Affirms B1 Debt Certificate Rating ----------------------------------------------------------------- Moody's Investors Service has affirmed the Ba3 on Kankakee County's (IL) $17.2 million of outstanding general obligation (GO) and lease revenue debt; and its B1 debt certificate rating. The outlook remains negative. The Ba3 GO rating reflects the county's distressed financial position and liquidity challenges, limited flexibility to raise revenue following a recent levy increase, and volatile revenue structure. Balanced against those challenges are the county's strengths that include a manageable debt burden, sizable tax base, and management's demonstrated willingness to adjust operations. The Ba3 lease revenue rating reflects a strong legal structure including a GO unlimited tax pledge to support lease payments. The B1 debt certificate rating reflects the weaker pledge relative to the GO, which does not benefit from a dedicated levy. Rating Outlook The negative outlook reflects the likelihood that the county's financial position will continue to deteriorate given limited financial flexibility and volatile revenues. While management has enacted operational changes that are projected to result in an operating surplus in fiscal 2016, the county's financial position will remain distressed and there are limited options remaining to respond to additional pressures. Factors that Could Lead to an Upgrade Sustained improvement to financial operations resulting in strengthened reserves and liquidity Factors that Could Lead to a Downgrade -- Inability of the county to access the market to place its tax anticipation warrants -- Increased strain on county liquidity or further growth in the county's deficit reserve position -- Significant increase in the county's debt or pension burden Legal Security The county's outstanding GOULT bonds are secured by its pledge and authorization to levy a property tax unlimited as to rate or amount to pay debt service. The county has also pledged additional revenue to each series. The additionally pledged revenue for the Series 2001 bonds are telecommunications surcharges, for the Series 2009 bonds certain Circuit Court fees; and for the Series 2011, Series 2012, and Series 2012A fee revenue from federal per diem prisoner incarceration. The county has covenanted that the property tax levy will be abated only after sufficient revenues have been collected in the Debt Service Fund from the additionally pledged revenues. The county began extending the levy for debt service in 2016. The Public Building Revenue Refunding Bonds, Series 2007 are secured by annual lease rental payments pursuant to a lease agreement between the Kankakee County Public Building Commission and Kankakee County. The lease rental payments due under the lease agreement are a GO of the county, payable from ad valorem taxes without limitation as to rate or amount. The county has additionally pledged various health department revenues to the lease. The county has covenanted that the property tax levy will be abated only after sufficient revenues have been collected in the Debt Service Fund from the additionally pledged revenues. The levy continues to be abated. The county's GO limited tax debt certificates are secured by the county's pledge to pay debt service from any legally available revenues, the collection of which is subject to statutory limitations. Use of Proceeds Not applicable. Obligor Profile Located approximately 60 miles south of Chicago (Ba1 negative), the county had a population of 113,449 as of the 2010 Census. Methodology The principal methodology used in the general obligation and debt certificate ratings was US Local Government General Obligation Debt published in January 2014. The principal methodology used in the lease revenue rating was Lease, Appropriation, Moral Obligation and Comparable Debt of US State and Local Governments published in July 2016. KATTOUR INC: Taps USA Lending's Zena Bardawell as Realtor --------------------------------------------------------- Kattour Inc. seeks approval from the U.S. Bankruptcy Court for the Southern District of Florida to hire a realtor in connection with its Chapter 11 case. The Debtor, which seeks liquidation of its business, proposes to hire Zena Bardawell of USA Lending Realty, Inc. Ms. Bardawell disclosed in a court filing that she and her firm do not hold any interest adverse to the Debtor's estate. The Debtor is represented by: Joel M. Aresty, Esq. Joel M. Aresty, P.A. 309 1st Ave S Tierra Verde, FL 33715 Phone: 305-899-9876 Cell: 305-904-1903 Fax: 305/899.9889 Email: Aresty@Mac.com About Kattour Inc. Kattour Inc. filed for Chapter 11 bankruptcy protection (Bankr. S.D. Fla. Case No. 16-17647) on May 27, 2016. Joel M. Aresty, Esq., at Joel M. Aresty, P.A., serves as the Debtor's bankrupty counsel. KCC INTERNATIONAL: Must File Chapter 11 Plan by Nov. 1 ------------------------------------------------------ KCC International LLC is required to file a Chapter 11 Plan and Disclosure Statement by November 1, 2016, according to a docket entry in the case on Aug. 8, 2016. 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. The Office of the U.S. Trustee has said no official committee of unsecured creditors has been appointed in the case. The Debtor is represented by: John Akard, Jr., Esq. John Akard Jr. P.C. 11111 McCracken, Suite A Cypress, TX 77429 Tel: 832-237-8600 Fax: 832-202-2088 E-mail: johnakard@attorney-cpa.com - and - Mynde Shaune Eisen, Esq. Attorney at Law P.O. 630749 Houston, TX 77263-0749 Tel: 713-266-2955 Fax: 713-266-3008 E-mail: wyndeeisen@sbcglobal.net KENNETH ALAN SARGENT: Plan Confirmation Hearing Set for Sept. 7 --------------------------------------------------------------- U.S. Bankruptcy Court Judge Paul W. Bonapfel granted conditional approval to the disclosure statement explaining Kenneth Alan Sargent's Chapter 11 plan of reorganization. The Court will hold a hearing on final approval of the disclosure statement and confirmation of the first amended plan on Sept. 7, 2016, at 9:25 a.m., in Courtroom 342, U.S. Courthouse, 600 East First Street, Rome, Georgia. Sept. 2, 2016 is fixed as the last day for filing written acceptances or rejections of the first amended chapter 11 plan. Sept. 2, 2016 is fixed as the last day for filing and serving written objections to the disclosure statement and confirmation of the plan. Any party objecting to the final approval of the disclosure statement or objecting to confirmation of the Debtor's plan must attend the hearing. Written objections must be filed with the Clerk, United States Bankruptcy Court, Room 339, U.S. Courthouse, 600 East First Street, Rome, Georgia 30161, or by using the Court's electronic case filing system. Any objection must also be served upon counsel for the Debtor. The Debtor filed a first amended chapter 11 plan and disclosure statement for the First Amended Plan on July 29, 2016. Kenneth Alan Sargent filed a Chapter 11 bankruptcy petition (Bankr. N.D. Ga. Case No. 15-41550) on July 6, 2015. KEVIN CHRISTOPHER GLEASON: Court Wants Plan, Disclosures Revised ---------------------------------------------------------------- Bankruptcy Judge John K. Olson denied approval of the Disclosure Statement explaining Kevin C Gleason's Plan of Reorganization dated June 6, 2016, and directed the Debtor to file an amended plan of reorganization and disclosure statement by Aug. 22, 2016. As reported by the Troubled Company Reporter on June 15, 2016, the Debtor's general unsecured creditors will receive a pro rata distribution from a fund of $25,000 resulting from the sale of Gleason's homestead property, according to the Debtor's plan of reorganization and explanatory disclosure statement. A full-text copy of the Disclosure Statement dated June 6, 2016, is available at: http://bankrupt.com/misc/flsb16-10001-78.pdf Kevin Christopher Gleason (Bankr. S.D. Fla. Case No. 16-10001) filed a Chapter 11 Petition on Jan. 1, 2016. The Debtor is an attorney who was admitted to practice in 1982 in the Commonwealth of Pennsylvania, and in 1983 in Florida and New Jersey. The Debtor is no longer an active member of the bars in Pennsylvania and New Jersey. KEY ENERGY: Reports Second Quarter 2016 Earnings ------------------------------------------------ Key Energy Services, Inc., reported a net loss of $92.8 million on $95.0 million of revenues for the three months ended June 30, 2016, compared to a net loss of $65.4 million on $197 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 $174 million on $206 million of revenues compared to a net loss of $125 million on $465 million of revenues for the six months ended June 30, 2015. Key's President and CEO, Robert Drummond, stated, "We continued to reshape our support structure and reduce costs during the second quarter with significant reductions in G&A. Although oil prices recovered from February lows during the second quarter, customer activity continued to decline with May marking the lowest total monthly U.S. revenue since the downturn began. However, we saw an uptick in U.S. revenue in June due to renewed customer interest. This improvement in customer interest is choppy and somewhat limited as while some of our customers are interested in pursuing work that requires Key's services, others are looking to address levered balance sheets with the improved cash flow generated from higher oil prices. "Discussions with Key's creditors continue with a goal of allowing Key to significantly reduce its debt burden and to achieve an improved liquidity position. During this period, we continue to deliver a high-level of service to our customers and remain a safe and dynamic work environment for our employees. In fact, thanks to our dedicated employees, we finished the second quarter with our best safety record ever recorded. "We are also pleased to have resolved the FCPA investigation with the SEC. We agreed to pay disgorgement of $5 million and entered into a cease and desist agreement. Key had already accrued a liability for the payment in the first quarter of 2016." U.S. Results Second quarter 2016 U.S. Rig Services revenues of $51.5 million were down 12.7% as compared to the first quarter. Second quarter operating loss was $13.7 million, or -26.6% of revenue, which included a loss on sale of asset of $0.3 million and severance of $0.4 million; excluding these items, normalized operating loss was $12.9 million, or -25.1% of revenue. These results compare to first quarter operating loss of $6.4 million, or -10.8% of revenue, which included severance of $0.6 million; excluding this loss, normalized operating loss was $5.8 million, or -9.9% of revenue. Rig hours declined approximately 6% sequentially driven primarily by an approximately 16% decline in California. Second quarter 2016 Fluid Management Services revenues of $19.6 million were down 13.6% as compared to the first quarter. Second quarter operating loss was $7.6 million, or -38.6% of revenue, which included a gain on sale of assets of $0.3 million; excluding this gain, normalized operating loss was $7.8 million, or 39.9% of revenue. These results compare to first quarter operating loss of $6.3 million, or -27.7% of revenue, which included a loss on sale of assets of $2.7 million and severance of $0.2 million; excluding these losses, normalized operating loss was $3.4 million, or -15.1% of revenue. Truck hours declined approximately 8% sequentially driven primarily by an approximately 19% decline in the Permian Basin. Second quarter 2016 Coiled Tubing Services revenues of $7.6 million were down 20.1% as compared to the first quarter. Second quarter operating loss was $6.1 million, or -79.5% of revenue; which included severance of $0.1 million; excluding this item, normalized operating loss was $5.9 million, or 77.8% of revenue. These results compare to first quarter operating loss of $6.1 million, or -64.5% of revenue, which included a loss on sale of assets of $1.1 million and severance of $0.1 million; excluding these losses, normalized operating loss was $5.0 million, or -52.2% of revenue. Second quarter 2016 Fishing & Rental Services revenues of $13.4 million were down 17.6% as compared to the first quarter. Second quarter operating loss was $8.8 million, or -65.4% of revenue, which included a loss on sale of assets of $0.9 million and severance of $0.1 million; excluding these items, normalized operating loss was $7.7 million, or 57.7% of revenue. These results compare to first quarter operating loss of $4.0 million, or -24.6% of revenue, which included a gain on the sale of assets of $1.7 million and severance of $0.1 million; excluding these items, normalized operating loss was $5.6 million, or -34.6% of revenue. International Segment Second quarter 2016 International revenues were $2.9 million, down 20.1% as compared to first quarter 2016 revenues of $3.6 million. Second quarter operating loss was $4.9 million, or -169.6% of revenues, which included severance of $0.3 million; excluding this item, normalized operating loss was $4.7 million. These results compare to first quarter operating loss of $5.1 million, or -139.9% of revenues, which included a loss on sale of assets of $0.1 million and severance of $0.4 million; excluding these items, normalized operating loss was $4.6 million, or 127.7% of revenue. General and Administrative Expenses General and Administrative (G&A) expenses were $40.9 million for the second quarter compared to $46.2 million in the prior quarter. Second quarter G&A expenses included $9.5 million in restructuring fees, $0.6 million in severance and $0.6 in costs associated with the FCPA investigations compared to first quarter G&A expenses that included a $5.0 million accrual in connection with the offer of settlement related to the FCPA investigations, $2.4 million in costs associated with the FCPA investigations and $5.9 million in severance. Excluding these items, G&A expense in the second quarter was $30.2 million as compared to $32.9 million in the first quarter. International G&A expenses were $2.5 million in the second quarter compared to $2.3 million in the first quarter. Balance Sheet and Capital Expenditures Key's consolidated cash balance at June 30, 2016 was $103.5 million compared to $155.7 million at March 31, 2016; additionally, Key had $18.6 million of restricted cash as of June 30, 2016 and March 31, 2016. Total debt at June 30, 2016 was $953.6 million compared to total debt of $965.4 million at March 31, 2016. The Company had $130.8 of total liquidity available at June 30, 2016. Capital expenditures for the quarter were $2.4 million. A full-text copy of the press release is available for free at: https://is.gd/WcvBtJ About Key Energy Key Energy Services, Inc. (NYSE: KEG), a Maryland corporation, claims to be the largest onshore, rig-based well servicing contractor based on the number of rigs owned. The Company was organized in April 1977 and commenced operations in July 1978 under the name National Environmental Group, Inc. In December 1992, the Company became Key Energy Group, Inc. and it changed its name to Key Energy Services, Inc. in December 1998. Key Energy reported a net loss of $917.70 million on $792.32 million of revenues for the year ended Dec. 31, 2015, compared to a net loss of $178.62 million on $1.42 billion of revenues for the year ended Dec. 31, 2014. As of March 31, 2016, the Company had $1.22 billion in total assets, $1.16 billion in total liabilities and $58.87 million in total equity. * * * As reported by the TCR on June 20, 2016, S&P Global Ratings lowered its corporate credit rating on U.S.-based Key Energy Services Inc. to 'CC' from 'CCC-'. "The downgrade follow's Key's disclosure that it entered into confidential agreements with certain holders of its 6.75% senior notes due 2021 and certain lenders of the term loans regarding a financial restructuring," said S&P Global Ratings credit analyst David Lagasse. The TCR reported on May 20, 2016, that Moody's Investors Service downgraded Key Energy Services, Inc.'s Corporate Family Rating (CFR) to Ca from Caa2, Probability of Default Rating (PDR) to Ca-PD from Caa2-PD, and senior unsecured rating to Ca from Caa3. The SGL-4 Speculative Grade Liquidity (SGL) Rating was affirmed. KINEMED INC: Seeks Dec. 31 Extension of Plan Filing Date -------------------------------------------------------- KineMed, Inc., asks the U.S. Bankruptcy Court for the Northern District of California to extend the exclusive period for the Debtor to file a plan of reorganization to December 31, 2016, and the exclusive period for the Debtor to obtain acceptances of the plan to March 31, 2017. According to the Debtor, two critical prerequisites to development of its Plan are (a) disposition of the Dynamic Proteomics Platform and the Midcap Financial Trust secured debt in order to allow for the recapitalization of the Debtor; and (b) assumption of the Ghrelin license so that the compound can be developed following Plan confirmation. Both of those prerequisites are in progress, but not yet completed, the Debtor tells the Court. The Debtor expectation that the discussions with Midcap will be concluded within the next several weeks, and that one or more related transactions will come before the Bankruptcy Court for approval in October or November 2016. At the same time, discussions with Biopharma Forest, Inc. ("BPF") are also ongoing, with respect to the assumption and postconfirmation performance of the Ghrelin license. The Debtor has agreed, at BPF’s request, to present that plan, as well as a draft of the Plan for the Debtor’s restructuring, to BPF in Japan before filing the Plan. That presentation is anticipated to be scheduled for late September 2016, at the earliest, with further iterations of both the development plan and the Plan anticipated thereafter. Because both sets of discussions must precede the filing of the Plan, the Debtor expects that it may not be in a position to file and prosecute the Plan until at least October 2016, and possibly later. Counsel for KineMed, Inc.: Merle C. Meyers, Esq. Michelle Thompson, Esq. MEYERS LAW GROUP, P.C. 44 Montgomery Street, Suite 1010 San Francisco, CA 94104 Telephone: (415) 362-7500 Facsimile: (415) 362-7515 Email: mmeyers@meyerslawgroup.com mthompson@meyerslawgroup.com About KineMed Inc. Headquartered in Emeryville, California, KineMed, Inc., has developed and validated a proprietary drug development platform to clinically advance drugs more efficiently and with less risk for later sale/out-license. The Company is creating a pipeline of high value drug assets in muscle-wasting and fibrotic diseases. The pipeline is focused on Phase 2 trials with synthetic Ghrelin, to address CKD & muscle wasting in the elderly. The Company filed for Chapter 11 bankruptcy protection (Bankr. N.D. Calif. Case No. 16-41241) on May 4, 2016, estimating its assets at between $10 million and $50 million and debts at between $1 million and $10 million. The petition was signed by David M. Fineman, chairman and chief executive officer. Judge Roger L. Efremsky presides over the case. Merle C. Meyers, Esq., at Meyrs Law Group, PC, serves as the Debtor's bankruptcy counsel. KIRBY BROTHERS: Seeks to Hire Kathleen Stoneback as Accountant -------------------------------------------------------------- Kirby Brothers, Inc. seeks approval from the U.S. Bankruptcy Court for the District of New Jersey to hire an accountant in connection with its Chapter 11 case. The Debtor proposes to hire Kathleen Stoneback, a certified public accountant, to prepare and file its monthly operating reports and tax returns. Ms. Stoneback will be paid $100 per hour. In a court filing, Ms. Stoneback disclosed that she is "disinterested" as defined in section 101(14) of the Bankruptcy Code. The firm may be reached at: Stoneback Kathleen CPA Accountant 117 Round Hill Rd Voorhees Township, NJ 08043 Tel: 856-795-7375 The Debtor is represented by: David A. Kasen, Esq. Kasen & Kasen 1874 E. Marlton Pike, Suite 3 Cherry Hill, NJ 08003 Tel: (856) 424-4144 Fax: (856) 424-7565 Email: dkasen@kasenlaw.com About Kirby Brothers Kirby Brothers, Inc. sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D. N.J. Case No. 16-15442) on March 23, 2016. The case is assigned to Judge Michael B. Kaplan. LANSING TRADE: Moody's Cuts Corporate Family Rating to B2 --------------------------------------------------------- Moody's Investors Service downgraded Lansing Trade Group LLC's Corporate Family Rating (CFR) to B2 from B1 and Probability of Default Rating to B2-PD from B1-PD and revised the outlook to negative. Moody's also downgraded the existing senior unsecured notes ($144 mil outstanding) to Caa1 from B3. The downgrade reflects the lost earnings in Lansing's Feed business following the imposition of trade restrictions on DDGs by the Chinese government, the proprietary trading losses in the second quarter, and the leaner operating environment that has narrowed margins for its Grain business. Ratings Downgraded: Lansing Trading Group, LLC -- Corporate Family Rating -- B2 from B1 -- Probability of Default Rating -- B2-PD from B1-PD -- $144 million senior unsecured notes due 2019 -- Caa1 (LGD6) from B3 (LGD6) Outlook -- negative from stable. RATINGS RATIONALE The downgrade reflects the earnings losses from proprietary trading in the second quarter as well as the negative impact on earnings in the Feed business and from the Chinese government's anti-dumping and countervailing duties investigation of US DDGs. While the majority of the impact on Lansing's DDGs trade was realized in the first quarter of 2016, Moody's expects the loss of the higher margin business will continue to negatively impact earnings over the medium term. In addition, the countervailing duties investigation creates uncertainty around the company's strategy to expand its DDGs business internationally. In the second quarter of 2016, Lansing incurred trading losses related to the soy complex (soybeans, meal and oil) of roughly $14 million. These losses occurred within a non-recourse, wholly owned subsidiary of Lansing. The earnings losses have elevated leverage to 4.3x Net Debt/EBITDA for the LTM ending June 30, 2016. (All metrics include Moody's Standard Adjustments as well as adjustments specific to the Trading Methodology.) The B2 corporate family rating also reflects the company's small size, market position and significant reliance on merchandising in one region (North America) for the majority of its earnings. Lansing has modest market share compared to several larger and better capitalized competitors that are represented globally and benefit from vertically integrated commodity processing operations. The company's modest size (fixed assets of roughly $200 million) and reliance on trading a limited number of agricultural commodities and sand for the majority of its earnings are limiting factors. Additionally, the current low commodity price environment has reduced Lansing's already thin EBITDA margins in its Grain business compared to other commodity merchandising and processing companies. Moody's also has some concern that Lansing's Energy business may deteriorate further if crude oil prices remain below $50 for several years. Lansing's relatively small asset base has grown through acquisitions and Moody's expects that the company will restrict acquisitions while operating performance remains weak over the next year or more. The rating is supported by a low absolute debt level and a relatively liquid balance sheet compared to most other industries. While earnings declined in FY2015, the company benefitted from low crop prices, which reduced working capital usage and debt. Moody's said, “We expect profitability will remain constrained into 2017 given the Chinese DDG trade restrictions and Moody's expectations for continued low commodity prices, which tends to reduce the margin per bushel or ton. Lansing benefits from its diverse customer base and long-term relationships with customers, which include large consumer product companies, and an adequate liquidity profile.” Moody's believes Lansing's financial policy and risk management are reflected in the rating. The negative outlook reflects Lansing's weaker financial performance from its core business as a result of the low commodity price environment and trade restrictions with China in its feed business. The outlook also reflects the uncertainty of a recovery in its earnings performance over the next twelve to eighteen months. The rating could be upgraded if the company were to increase its fixed assets, while maintaining a leverage ratio (Net Debt/EBITDA) of less than 3.0x. The rating could be downgraded if available liquidity fell below $150 million, the company meaningfully increased its leverage (Net Debt/EBITDA) to 4.5x on a sustained basis, EBITDA/Interest less than 2.0x persists, or if Funds From Operations/Debt remains below 10%. Liquidity is a primary concern for agricultural commodity merchandising and processing companies due to the potential volatile nature of commodity prices. Lansing's adequate liquidity is supported by its cash balances, established committed and uncommitted bilateral trade lines, expectations for positive free cash flow, and availability under its $450 million ABL revolving credit facility. The company had approximately $24.3 million of cash as of June 30, 2016. Lansing's $450 million revolver matures on January 22, 2018, and is subject to a borrowing base. The revolver has an accordion feature that Lansing can use to secure up to an additional $200 million of commitments should its business grow or commodity prices dictate a need for additional liquidity. The company has sought additional commitments, when needed in the past, rather than maintaining a larger revolver. The lower commodity prices during 2013-16 have allowed the company to maintain lower revolver commitments, but liquidity needs could easily change if adverse weather conditions result in a lower than expected harvest at any point over the next several years. The company also utilizes uncommitted structured trade financing agreements and lines of credit. As of June 30, 2016, the company had $63 million borrowed on the revolver and $266.2 million of total ABL availability. The revolving credit facility has maintenance financial covenants - minimum consolidated tangible net worth, maximum leverage ratio, and minimum working capital requirement. Moody's expects the company to remain in compliance with the covenants through the next twelve months. The principal methodology used in these ratings was Trading Companies published in June 2016. Lansing Trade Group, LLC (Lansing), headquartered in Overland Park, Kansas, is a commodity merchandising company specializing in whole grains, feed ingredients and energy products. The company generates the majority of its revenue in North America and operates through three segments: Grains, Feed Ingredients, and Energy. Lansing is owned by The Andersons Agriculture Group, L.P., Macquarie Americas Corp., New Hope Liuhe Investment (USA), Inc., and employees. Revenue for the twelve months ended June 30, 2016, totaled $5.2 billion. LARRY J. ADKINS: Taps Jason A. Burgess as Legal Counsel ------------------------------------------------------- Larry J. Adkins Enterprises, Inc. seeks approval from the U.S. Bankruptcy Court for the Middle District of Florida to hire legal counsel in connection with its Chapter 11 case. The Debtor proposes to hire The Law Offices of Jason A. Burgess, LLC, to provide these legal services: (a) give advice to the Debtor with respect to its powers and duties; (b) advise the Debtor with respect to its responsibilities in complying with the U.S. Trustee's Operating Guidelines and Reporting Requirements and with the Local Rules of the court; (c) prepare legal papers; (d) protect the interest of the Debtor in all matters pending before the court; and (e) represent the Debtor in negotiations with their creditors and in preparation of the disclosure statement and plan of reorganization. Burgess' hourly rate for attorney services is $295. The firm's paralegal time will be billed at $75 per hour. Jason Burgess, Esq., disclosed in a court filing that he does not represent any interest adverse to the Debtor. Mr. Burgess' contact information is: Jason A. Burgess, Esq. The Law Offices of Jason A. Burgess, LLC 1855 Mayport Road Atlantic Beach, FL 32233 Phone: (904) 372-4791 Fax: (904) 853-6932 About Larry J. Adkins Larry J. Adkins Enterprises, Inc. sought protection under Chapter 11 of the Bankruptcy Code (Bankr. M. D. Fla. Case No. 16-03103) on August 15, 2016. LAS VEGAS JOHN: Community Bank Wants Exclusive Period Terminated ---------------------------------------------------------------- Community Bank asks the U.S. Bankruptcy Court for the District of Nevada to terminate Las Vegas John, L.L.C.'s exclusive period to file a plan of reorganization. Community Bank is the Debtor's sole secured creditor and holds a claim against the Debtor in excess of $700,000, which is secured by the Debtor's primary asset -- a 36-unit apartment complex located in Las Vegas, Nevada. Community Bank contends that the Debtor's Property generates net operating monthly income on a monthly basis in the amount of $12,247.70. It further contends that notwithstanding having net operating monthly income in the amount of $12,247.70, the Debtor: (a) has failed to deliver any payment to Community Bank for the months of May through August 2016; (b) is in arrears to the City of Las Vegas for sewer services in the amount of $5,555.46; (c) is in arrears to the Las Vegas Valley Water District in the amount of $4,821.84; (d) is in arrears to the Internal Revenue Service for taxes in the amount of $4951.49; and (e) has other unpaid payables to Cox Communications, NV Energy, Cecil Thomas, Michael Camargo, Upper Ground Flooring, Republic Services, Home Team Pest Defense, Inc., Southwest Gas Corporation, and Robert Selmon/Sammy Bjork in the aggregate amount of $20,741.67. Community Bank tells the Court that the Debtor is not using its Property's income to make any repairs or improvements to the Property or to pay: (i) vendors who contribute services to the Property; (ii) water services that are vital to the Property; (iii) taxing authorities; or (iv) the debt owed to Community Bank, that allowed for the acquisition of the Property in the first place. Community Bank further tells the Court that one of the few debts that is actually being paid is the management fee payable to the Debtor's principal, and that the balance of the income from the Property is being pocketed by the Debtor's principal or is being used to pay his other obligations. Community Bank contends that the Debtor and its principal have shown that they are not trustworthy stewards of the Property, and will not be during the interim period during which they market the Property for sale. It further contends that it is seeking a termination of the Exclusivity Period in order to file its own liquidating plan in the case. A full-text copy of the Community Bank's Motion, dated August 16, 2016, is available at https://is.gd/QqPuEO Community Bank is represented by: Michael B. Wixom, Esq. Katie M. Weber, Esq. SMITH LARSEN & WIXOM Hills Center Business Park 1935 Village Center Circle Las Vegas, NV 89134 Telephone: (702)252-5002 Email: mbw@slwlaw.com kw@slwlaw.com About Las Vegas John, L.L.C. Las Vegas John, L.L.C. filed a chapter 11 petition (Bankr. D. Nev. Case No. 16-14273) on August 3, 2016. The petition was signed by Dmitrios P. Stamatakos, managing member. The Debtor is represented by Matthew C. Zirzow, Esq., at Larson & Zirzow. The case is assigned to Judge August B. Landis. The Debtor estimated assets at $1 million to $10 million and debts at $500,000 to $1 million at the time of the filing. LENNAR BUFFINGTON: Court Oks Sale of Property to RSI Communities ---------------------------------------------------------------- Judge H. Christopher Mott of the U.S. Bankruptcy Court for the Western District of Texas authorized Lennar Buffington Stonewall Ranch, LP to sell property and to assume, and assign executory contracts with consent from United Development Funding, LP ("UDF"), to RSI Communities, LLC for $16,000,000. The Debtor and RSI Communities have executed a Contract of Sale of real property owned by the Debtor and PH SPMSL, LP, a non-debtor. A copy of the Contract of Sale attached to the order is available for free at: http://bankrupt.com/misc/Lennar_Buffington_90_Order.pdf The Purchaser agrees to purchase the real estate situated in the extra-territorial jurisdiction of Liberty Hill, Williamson County, Texas, to wit, being (i) 17 finished single-family residential lots owned by PH SPMSL and located in Stonewall Ranch, Phase 2, Stonewall Ranch, Phase 3; and (ii) approximately 183 acres of land located in Williamson County, Texas, owned by Len-Buff, which Paper Lot Land is to be developed into approximately 771 single-family residential lots in proposed subdivisions known or to be known as Stonewall Ranch, Phase 4 through 10. The property also includes all those open space, common area, rights-of-way, whether public or private, and other land owned by the Debtor which intended to be developed as part of the subdivision. The property also includes all rights, title and interest of the Debtor, is any, in and to any and all development rights relating to, associated with/or appurtenant to any of the Paper Lot Land and Finished Lots. Judge Mott approved the following assumption and assignment of (a) the Liberty Hill Contract, (b) the Georgetown Contract, and (c) the Reimbursement Agreement to Purchaser. At the Closing, the Debtor is authorized to (a) pay in full any ad valorem taxes owed by the Debtor for years prior to 2016; (b) pay $3,274,746 plus $607 per diem for each day after Aug. 15, 2016, plus $175,000 as the undisputed amount for attorneys' fees and costs incurred by PNC Bank; (c) pay $587,037 plus $1,268 per diem for each day after Aug. 15, 2016 to the City of Liberty Hill; and (d) pay the UST fees, $13,000 as an estimated payment for the third quarter of 2016. At the Closing the Debtor will retain $200,000 ("Retained Funds") for payment of administrative expense claims of professionals hired by the Debtor and any fees due ; retain $3,300,000 to which the liens of Lennar Homes of Texas Land and Construction, Ltd. and Lennar Texas Holding Co. and UDF will attach in the same order, priority and validity that they applied to the Purchased Assets subject to further order of the Court; and retain $100,000 ("Attorney's Fees Funds") to which the liens of PNC and UDF will attach in the same order, priority and validity that they applied to the Purchased Assets subject to further order of the Court. UDF and PNC will attempt to resolve the issue of whether PNC is entitled to all or a portion of the Attorney's Fees Funds as additional attorney's fees and costs as part of its allowable claim. If the parties are able to agree on a resolution of the Disputed Attorney's Fees issue, then the Debtor is authorized and directed to pay from the Attorney's Fees Funds the amount on which the parties' agree. However, if UDF and PNC are unable to agree on a resolution of the Disputed Attorney's Fees issue, then the issue will be brought before the Court for resolution on a schedule mutually agreeable to the parties or as otherwise ordered by the Court. At the Closing the Debtor will cause to be paid all costs of Closing, including fees for a title policy and fees incurred by the title company will be paid. The Purchaser can be reached at: John Bohnsen RSI Communities LLC 810 Hesters Crossing Road, SUite 235 Round Rock, TX 78681 Telephone: (512) 953-4111 E-mail: jbohnen@rsicommunities.com and is represented in this matter by: L. Jeffrey Hubanak, Esq. LOCKE LORD LLP 600 Congress Ave., Suite 2200 Austin, TX 78701 Telephone: (512) 305-4807 E-mail: jhubenak@lockelord.com UDF Development Funding III, LP, filed an involuntary Chapter 11 bankruptcy petition against Austin, Texas-based Lennar Buffington Stonewall Ranch, LP (Bankr. W.D. Tex. Case Number 15-11548) on Nov. 30, 2015, Judge Christopher H. Mott presides over the case. Richard W. Ward, Esq., who has an office in Plano, Texas, serves as UDF Development's counsel. LIBERTY INTERACTIVE: Fitch Rates Proposed Sr. Unsec. Debentures BB ------------------------------------------------------------------ Fitch Ratings has assigned a 'BB/RR4 (EXP)' rating to Liberty Interactive LLC's (Liberty) proposed exchangeable senior unsecured debentures. Proceeds from the offering are expected to be used primarily for debt repayment and general corporate purposes. As of June 30, 2016, Liberty had approximately $8.3 billion of debt outstanding. KEY RATING DRIVERS Consolidated Profile Drives Ratings: Liberty's and QVC Inc.'s (QVC) ratings reflect the consolidated legal entity/obligor credit profile, rather than the tracking stock structure of Interactive (QVCA/B)/Ventures (LVNTA/B). Based on Fitch's interpretation of Liberty's indentures, Liberty could not spin out QVC without bondholder consent. Fitch believes because QVC generates 84% and 96% of Liberty's revenues and EBITDA, respectively, a spinoff would trigger the "substantially all" asset disposition restriction in the Liberty indentures. Ratings Reflect Spinoff: Fitch's ratings materially rely on QVC, with Liberty's other investments viewed as incremental support. The ratings incorporate LVNTA/B's July 2016 spinoff of CommerceHub, Inc. and its expected spinoff of Liberty Expedia Holdings, Inc. Recent Investment: Liberty used cash on hand to invest $2.4 billion in Liberty Broadband Corporation (Broadband) for a 24% ownership position in Broadband in May 2016, leaving Liberty with $492 million of cash at June 30, 2016. Broadband used the proceeds to fund its $5 billion stock purchase for 25% ownership in an entity (New Charter) created by Charter Communications Inc.'s merger with Time Warner Cable Inc. and acquisition of Bright House Networks. Liberty also exchanged its TWC ownership for a 2% ownership position in New Charter. Zulily Acquisition: Liberty acquired zulily Inc. in October 2015 for $2.3 billion using cash on hand at zulily (approximately $300 million), the issuance of approximately 38.5 million shares of QVCA stock ($1.2 billion) and borrowings under QVC's revolving credit facility ($800 million). QVC Debt Ratings: Fitch rates both QVC's senior secured bank credit facility and the senior secured notes 'BBB-', two notches higher than QVC's Issuer Default Rating. The secured issue rating reflects what Fitch believes QVC's stand-alone ratings would be. Diversification and Adaptability: Fitch recognizes QVC's ability to manage product mix and adapt to its customers' shopping preferences. QVC grew revenues over the last three years while maintaining Fitch-calculated EBITDA margins in the 20%-22% range. Fitch believes QVC will continue to grow revenues at least at GDP levels. While QVC EBITDA margin fluctuation is driven in part by product mix, Fitch believes these margins will remain in their historical 20%-22% range over the next few years. Cash Deployment: Fitch expects Liberty's FCF to be dedicated to share repurchases and debt reduction, and QVC to manage to its stated 2.5x leverage target within 18 months, primarily though EBITDA growth. Fitch recognizes the risk remains that Liberty may acquire the 62% of HSN Inc. it does not own, but believes the zulily acquisition reduced this probability. KEY ASSUMPTIONS Fitch's key assumptions within the rating case for Liberty Interactive LLC include: -- Annual revenue growth in low single digits; -- EBITDA margins remain in the 19%-20% range; -- Annual FCF generation of approximately $0.9 billion- $1 billion; -- Share buybacks funded by FCF. RATING SENSITIVITIES Positive Rating Actions: Fitch believes if Liberty were to manage to more conservative leverage targets, ratings could be upgraded. Fitch expects Liberty's gross unadjusted leverage to be managed to 4.0x and QVC's unadjusted gross leverage to be managed to 2.5x. Negative Rating Actions: Negative action could occur if QVC does not return leverage to below 2.5x within 18 months; if financial policy changes, including more aggressive leverage targets and asset mix changes, weaken bondholder protection; or if there are unexpected revenue declines in excess of 10% that materially drive declines in EBITDA and FCF, and result in QVC's leverage exceeding 2.5x in the absence of a credible plan to reduce leverage. LIQUIDITY Fitch believes liquidity at QVC will be sufficient to support operations and its expansion into other markets. Acquisitions and share buybacks are expected to be a primary use of FCF. Fitch also believes that there is sufficient liquidity and cash generation (from investment dividends and tax sharing between the tracking stocks) to support debt service and disciplined investment at Liberty LLC. Fitch recognizes that in the event of a liquidity strain at Liberty LLC, QVC could provide funding to support debt service (via intercompany loans), or the tracking stock structure could be collapsed. Fitch notes that cash can travel throughout all Liberty entities relatively easily. Although the tracking stock structure adds a layer of complexity, Liberty has in the past reattributed assets and liabilities. Fitch believes that resources at QVC would be used to support Liberty, and vice versa, if ever needed. Fitch believes Liberty LLC continues to carry meaningful liquidity with $492 million in readily available cash, $975 million of availability on QVC's $2.65 billion revolver due June 2021 ($140 million matures on March 2020), and $3 billion in other public holdings as of June 30, 2016, (pro forma for the spinoffs of Expedia and CommerceHub). Fitch calculates FCF of $874 million for the last 12 months ended June 30, 2016 (excluding discontinued operations). Based on Fitch's conservative projections, Fitch expects Liberty's FCF to be in the range of $900 million-$1 billion for fiscal 2016. Liberty's maturities are well laddered and include a $450 million margin loan due in 2017 and $400 million of QVC's 3.125% senior secured notes due in 2019. Fitch believes Liberty has sufficient liquidity to handle these maturities and other potential redemptions. Other than the 2019 and 2020 notes, the remaining QVC notes' call provisions are limited to make-whole provisions ranging from 25 bps-50 bps. FULL LIST OF RATING ACTIONS Fitch currently has these ratings: Liberty Interactive LLC -- Issuer Default Rating (IDR) at 'BB'; -- Senior unsecured at 'BB/RR4'. QVC -- IDR at 'BB'. -- Senior secured debt at 'BBB-/RR1'. The Rating Outlook is Stable. LIBERTY INTERACTIVE: S&P Assigns 'BB' Rating on $500MM Debentures ----------------------------------------------------------------- S&P Global Ratings assigned a 'BB' issue-level rating and a '3' recovery rating to Liberty Interactive LLC's proposed exchangeable debentures that could range from $500 million to $575 million and maturing in 2046. The issue-level rating is the same as the corporate credit rating on Liberty Interactive Corp. (Liberty Interactive), which is the parent of Liberty Interactive LLC. The recovery rating indicates S&P's expectation for meaningful recovery in the high end of the 50% to 70% range in the event of a payment default. Each of the new 2046 debentures is exchangeable into Charter Communications Inc. (Charter) Class A common stock, cash, or a combination of Charter's Class A common stock and cash. Liberty Interactive plans to use the net proceeds of the offering to repay debt including outstanding amounts under a $450 million margin loan facility with any remaining proceeds used for general purposes, including the refinancing of other debt. S&P's 'BB' corporate credit rating and continued negative outlook on Liberty Interactive reflects the weakening in leverage metrics including debt to EBITDA rising to about 3.9x, following the company's investment in Liberty Broadband Corp. S&P continues to believe that while the company's initiatives to improve its credit profile will yield favorable results, external factors such as the challenging retail environment could slow the improvement. Somewhat mitigating these concerns are Liberty Interactive's differentiated product strategy and its repeat customer base from which the company generates about 86% of worldwide sales. Its liquidity remains strong with about $500 million cash on hand at June 30, 2016, availability under its $2.65 billion revolver maturing in 2020, and good internal cash flow generation RATINGS LIST Liberty Interactive Corp. Corporate Credit Rating BB/Negative/-- New Rating Liberty Interactive LLC Debentures due 2046 BB Recovery rating 3H LIME ENERGY: Incurs $3.76 Million Net Loss in Second Quarter ------------------------------------------------------------ Lime Energy Co. filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss available to common stockholders of $3.76 million on $21.0 million of revenue for the three months ended June 30, 2016, compared to a net loss available to common stockholders of $1.29 million on $31.95 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 stockholders of $11.5 million on $44.2 million of revenue compared to a net loss available to common stockholders of $3.70 million on $50.2 million of revenue for the six months ended June 30, 2015. As of June 30, 2016, Lime Energy had $46.2 million in total assets, $40.6 million in total liabilities, $11.40 million in contingently redeemable series C preferred stock, and a $5.76 million total stockholders' deficiency. "We have historically financed our liquidity and capital needs primarily through the use of funds generated from operations, the issuance of debt and equity securities, including the Subordinated Convertible Term Notes and the Series C Preferred Stock, and access to secured line of credit. We plan to finance our future operating liquidity and capital needs in a manner consistent with our past practice. "Our ability to continue to expand the sales of our products and services will require the continued commitment of significant funds. The actual timing and amount of our future funding requirements will depend on many factors, including the amount, timing and profitability of future revenues, working capital requirements, the level and amount of product marketing and sales efforts, among other things. "If we do determine it necessary to raise additional capital because profitability does not improve as we expect it to, there is no assurance we will be able to do so, or it may only be available on terms that are not favorable to the Company or our existing stockholders. In the event that we are required to raise additional capital in the future but are unable to do so, we may be required to scale back operations or cease operations altogether," the Company stated in the report. As of June 30, 2016, the Company had cash and cash equivalents of $2.7 million, compared to $6.7 million (including $1.3 million of restricted cash) as of Dec. 31, 2015. "We knew that the second quarter would be challenging due to delays in key utility programs; however, we are working towards our return to profitability as we move into the second half of the year," said Adam Procell, Lime Energy president & CEO. "We are moving forward with our plans to scale the Company and continue to leverage innovative technology to achieve our goals." The Company's quarterly report on Form 10-Q is available from the SEC Web site at https://is.gd/HQxFUq About Lime Energy Headquartered in Huntersville, North Carolina, Lime Energy Co. -- http://www.lime-energy.com/-- is engaged in planning and delivering clean energy solutions that assist its clients in their energy efficiency and renewable energy goals. The Company's solutions include energy efficient lighting upgrades, energy efficient mechanical and electrical retrofit and upgrade services, water conservation, building weatherization, on-site generation and renewable energy project development and implementation. The Company provides energy solutions across a range of facilities, from high-rise office buildings, distribution facilities, manufacturing plants, retail sites, multi-tenant residential buildings, mixed use complexes, hospitals, colleges and universities, government sites to small, single tenant facilities. Lime Energy reported a net loss available to common stockholders of $4.44 million on $113 million of revenue for the year ended Dec. 31, 2015, compared to a net loss available to common stockholders of $5.60 million on $58.8 million of revenue for the year ended Dec. 31, 2014. LITE SOLAR: Hires Sussman Shank as Special Counsel -------------------------------------------------- Lite Solar Corp., seeks authority from the U.S. Bankruptcy Court for the Central District of California to employ Sussman Shank LLP as special counsel to the Debtor. Prior to the filing of the petition, the Debtor was involved in certain Oregon state court litigation, with case number 14-CV-14976. Lite Solar requires Sussman Shank to: -- perform specific tasks necessary in this case, with a view towards minimizing liabilities and maximizing recoveries to creditors in the bankruptcy case; -- represent the Debtor in the Oregon State Court (to the extent Oregon State Court practice continues to be necessary) and the United States District Court for the District of Oregon with respect to removal of the Oregon Litigation to that Court; -- advise and assist to remove the Oregon Litigation. Sussman Shank will be paid at these hourly rates: Clifford S. Davidson $315 Other Attorneys $230-$485 Paralegals $145-$220 The Debtor paid Sussman Shank a pre-petition retainer of $12,500. The amount of $9,500 will be applied to the pre-petition works. Sussman Shank will also be reimbursed for reasonable out-of-pocket expenses incurred. Clifford S. Davidson, member of Sussman Shank 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. Sussman Shank can be reached at: Clifford S. Davidson, Esq. SUSSMAN SHANK LLP 1000 SW Broadway, Suite 1400 Portland, OR 97205 Tel: (503) 227-1111 Fax: (503) 248-0130 E-mail: cdavidson@sussmanshank.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. LOGAN'S ROADHOUSE: Files Reorganization Plan & Disc. Statement -------------------------------------------------------------- BankruptcyData.com reported that LRI Holdings (Logan's Roadhouse) filed with the U.S. Bankruptcy Court a Chapter 11 Plan of Reorganization and related Disclosure Statement. According to the Disclosure Statement, Class 1, holders of other priority claims shall be paid full in cash; holders of Class 2, other secured claims shall receive either (i) cash in the full amount or (ii) net proceeds of the sale or disposition of collateral securing such allowed other secured claim; holders of Class 3, revolving facility lender claims shall receive a pro rata share of the exit revolving facility (by having any revolving facility lender claims for outstanding principal deemed outstanding under the exit revolving facility on a dollar-for-dollar basis and all letters of credit issued under the credit agreement deemed outstanding under the exit revolving facility); holders of Class 4, GSO note claims and Kelso Note claims shall receive a pro rata share of the new stock (subject to dilution for the CRO fee equity award and management incentive plan); holders of Class 5, unexchanged note claims shall receive the following: (i) subclass 5(a) - each holder of unexchanged notes that, in the aggregate, holds equal to or in excess of $50,000 in principal amount of unexchanged notes shall receive a pro rata share of the new stock (subject to dilution for the CRO fee equity award and management incentive plan) and (ii) subclass 5(b) - Each holder of unexchanged notes that, in the aggregate, holds less than $50,000 in principal amount of unexchanged notes shall receive its cashout payment; holders of Class 6, general unsecured claims shall receive the following: (i) if Class 6 votes in favor of the Plan, its pro rata share of the general unsecured claim cash pool and (ii)i Class 6 rejects the Plan, no distribution on account of its allowed general unsecured claim; holders of Class 7, intercompany claims shall be reinstated, cancelled or compromised as determined by the Debtors with the consent of the required supporting noteholders; holders of Class 8, subordinated claims and holders Class 9, existing equity interests shall receive shall neither receive any distributions nor retain any property under the Plan; holders of Class 10, intercompany interest shall be cancelled or reinstated as determined by the Debtors with the consent of the required supporting noteholders. The Disclosure Statement states, "The amount of the New Stock to be issued pursuant to the Plan shall be disclosed in the Plan Supplement." The Court scheduled a September 22, 2016 hearing to consider the Disclosure Statement. About Logan's Roadhouse Logan's Roadhouse, Inc., a Tennessee corporation, operates full-service casual dining steakhouses. Prior to the Petition Date, the Debtors' operations encompassed approximately 234 company-owned restaurants located in 23 states, with a workforce of approximately 18,964 employees, and an additional 26 franchised restaurants. The Debtors offer specially-seasoned aged steaks and southern inspired dishes in a roadhouse atmosphere that includes their "bottomless buckets" of roasted in-shell peanuts. All of the Debtors' company-owned and franchised restaurants operate under the name Logan's Roadhouse. Each of Roadhouse Holding Inc., Roadhouse Intermediate Inc., Roadhouse Midco Inc., Roadhouse Parent Inc., LRI Holdings, Inc., Logan's Roadhouse, Inc., Logan's Roadhouse of Texas, Inc., and Logan's Roadhouse of Kansas, Inc. filed a voluntary petition under Chapter 11 of the Bankruptcy Code (Bankr. D. Del. Case Nos. 16-11819 to 16-11827) on Aug. 8, 2016. The petitions were signed by Keith A. Maib as chief restructuring officer. Debtor Logan's Roadhouse's estimated assets in the range of $100 million to $500 million and debts of $500 million to $1 billion. The Debtors have hired Young Conaway Stargatt & Taylor, LLP as counsel, Mackinac Partners, LLC as restructuring advisor, Jefferies LLC as financial advisor and Donlin, Recano & Company, Inc. as notice and claims agent. Judge Brendan Linehan Shannon is assigned to the cases. MARCIE ELECTRIC: Plan Confirmation Hearing Set for Sept. 14 ----------------------------------------------------------- The Hon. Daniel S. Opperman granted preliminary approval to the disclosure statement explaining Marcie Electric Inc.'s Chapter 11 plan. The Debtor has filed a combined plan of reorganization and disclosure statement. The deadline to return ballots on the plan, as well as to file objections to final approval of the disclosure statement and objections to confirmation of the plan, is September 7, 2016. The completed ballot form must be returned by mail to the Debtor's attorney: Guy Conti, Esq. The Law Offices of Guy T. Conti, PLLC 2045 Hogback Road Ann Arbor, MI 48105 E-mail: gconti@contilegal.com The hearing on objections to final approval of the disclosure statement and confirmation of the plan will be held on Wednesday, September 14, 2016, at 11:00 a.m. in the U.S. Bankruptcy Courtroom, 226 West Second Street, Flint, Michigan 48502. The deadline for all professionals to file final fee applications is Sept. 28, 2016. About Marcie Electric Marcie Electric Inc. sought protection under Chapter 11 of the Bankruptcy Code (Bankr. E.D. Mich. Case No. 16-30892) on April 10, 2016. The Debtor is represented by Guy T. Conti, Esq., at The Law Office of Guy T. Conti, PLLC. MARINA BIOTECH: Incurs $643,000 Net Loss in Second Quarter ---------------------------------------------------------- Marina Biotech, Inc., filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss applicable to common stockholders of $643,000 on $0 of license and other revenue for the three months ended June 30, 2016, compared to net income applicable to common stockholders of $904,000 on $400,000 of license and other revenue for the same period in 2015. For the six months ended June 30, 2016, the Company reported net income applicable to common stockholders of $424,000 on $250,000 of license and other revenues compared to net income applicable to common stockholders of $1.31 million on $400,000 of license and other revenues for the six months ended June 30, 2015. As of June 30,2 016, Marina Biotech had $7.14 million in total assets, $6.07 million in total liabilities and $1.07 million in total stockholders' equity. In connection with that process of exploring strategic alternatives, on April 29, 2016, the Company signed a term sheet with Turing Pharmaceuticals AG, a privately-held biopharmaceutical company focused on developing and commercializing innovative treatments for serious diseases, pursuant to which the Company would acquire Turing's intranasal ketamine program for consideration consisting of approximately 53 million shares of the Company's common stock. The assets to be acquired from Turing would include all patents and intellectual property rights, clinical development plans, regulatory documents and existing product inventories. As per the term sheet, the Company would pay to Turing up to $95 million in success-based and sales-based milestones plus a mid-single digit royalty on net sales, if any. At June 30, 2016, the Company had an accumulated deficit of approximately $334.0 million, $108.3 million of which has been accumulated since the Company focused on RNA therapeutics in June 2008. To the extent that sufficient funding is available, the Company will continue to incur operating losses as it executes its plan to raise additional funds, complete the Turing Transaction, and investigate either acquiring other technology or selling its existing assets or technology. In addition, the Company has had and will continue to have negative cash flows from operations. The Company has funded its losses primarily through the sale of common and preferred stock and warrants, the sale of the Notes, revenue provided from the Company's license agreements and, to a lesser extent, equipment financing facilities and secured loans. In 2015 and 2016, the Company funded operations with a combination of the issuance of the Notes, preferred stock and license-related revenues. At June 30, 2016, the Company had negative working capital of $2.7 million and $0.3 million in cash. The Company's limited operating activities consume the majority of its cash resources. "We believe that our current cash resources, including the proceeds from the Notes received in June 2016 as noted above, will enable us to fund our intended operations through October 2016. Our ability to execute our operating plan beyond October 2016 depends on our ability to obtain additional funding, the subsequent closing of the Turing Transaction, and any subsequent plans to acquire other technology or sell our existing assets or technology. The volatility in our stock price, as well as market conditions in general, could make it difficult for us to raise capital on favorable terms, or at all. If we fail to obtain additional capital when required, we may have to modify, delay or abandon some or all of our planned activities, or terminate our operations. There can be no assurance that we will be successful in any such endeavors. The accompanying consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. "If the Turing Transaction is not consummated and we are unable to either find a viable purchaser for our assets or to obtain sufficient capital to continue our current operations or any other business that we may acquire, we may be forced to file bankruptcy as we will have minimal capital and operating assets to continue the business," the Company stated in the report. The Company's quarterly report on Form 10-Q is available from the SEC website at https://is.gd/Rvle9W About Marina Biotech Marina Biotech, Inc., headquartered in Bothell, Washington, is a biotechnology company focused on the discovery, development and commercialization of nucleic acid-based therapies utilizing gene silencing approaches such as RNA interference ("RNAi") and blocking messenger RNA ("mRNA") translation. The Company's goal is to improve human health through the development, either through its own efforts or those of its collaboration partners and licensees, of these nucleic acid-based therapeutics as well as the delivery technologies that together provide superior treatment options for patients. The Company has multiple proprietary technologies integrated into a broad nucleic acid-based drug discovery platform, with the capability to deliver novel nucleic acid-based therapeutics via systemic, local and oral administration to target a wide range of human diseases, based on the unique characteristics of the cells and organs involved in each disease. On June 1, 2012, the Company announced that, due to its financial condition, it had implemented a furlough of approximately 90% of its employees and ceased substantially all day-to-day operations. Since that time substantially all of the furloughed employees have been terminated. As of Sept. 30, 2012, the Company had approximately 11 remaining employees, including all of its executive officers, all of whom are either furloughed or working on reduced salary. As a result, since June 1, 2012, its internal research and development efforts have been minimal, pending receipt of adequate funding. Marina Biotech reported a net loss of $6.47 million on $500,000 of license and other revenue for the year ended Dec. 31, 2014, compared to a net loss of $1.57 million on $2.11 million of license and other revenue in 2013. Wolf & Company, P.C., in Boston, Massachusetts, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2015, citing that the Company has suffered recurring losses from operations, has a significant accumulated deficit and does not have sufficient capital to fund its operations. This raises substantial doubt about the Company's ability to continue as a going concern. MARIO SILVERIO GRANADOS: Disclosures OK'd, Ch.11 Plan Confirmed --------------------------------------------------------------- The Hon. August B. Landis of the U.S. Bankruptcy Court for the District of Nevada has granted final approval of Mario Silverio Granados and Emma Lazaro-Vanegas' disclosure statement and confirmed their plan of reorganization - plan no. 3. The Debtors filed a Chapter 11 Plan of Reorganization - Plan No. 3 on Feb. 26, 2016. The Debtors filed a Disclosure Statement on Feb. 26, 2016, which was approved on April 12, 2016. The Plan was filed by the Debtors' counsel: Michael J. Harker, Esq. 2901 El Camino Avenue, No. 200 Las Vegas, NV 89102 E-mail: Mharker@harkerlawfirm.com Tel: (702) 248-3000 Mario Silverio Granados and Emma Lazaro-Vanegas filed for Chapter 11 bankruptcy protection (Bankr. D. Nev. Case No. 14-16872) in 2014. MAX EXPRESS: Court Extends Exclusive Plan Filing Date to Sept. 29 ----------------------------------------------------------------- Honorable Deborah J. Saltzman of the U.S. Bankruptcy Court for the Central District of California extended Max Express, Inc.'s exclusive period to file a plan to September 29, 2016. The Debtor previously asked the Court to extend its exclusivity period because the Committee was recently appointed and the Debtor will need time to work with the Committee and negotiate a plan of reorganization. While the Debtor has converted its employment model, enough time needs to pass to allow Debtor to utilize the new model and assess profitability and provide projections supporting feasibility of any proposed Plan. The Debtor says it is seeking an extension of the exclusivity deadline to allow it sufficient time to resolve any objections to proofs of claim, and assess its profitability under the new employment model to adequately propose a plan of reorganization. There are several unresolved contingencies because three of the Debtor's drivers have filed proofs of claim which Debtor must analyze and determine if it has objections to the claims. If the Debtor has any objections to the claims, the objections must be resolved before Debtor can propose a plan of reorganization. These proofs of claim make up the majority of the Debtor's claims, and therefore, their resolution is essential to formulating a Plan and Disclosure Statement. Max Express, Inc.'s counsel: Vanessa M Haberbush, Esq. HABERBUSH & ASSOCIATES LLP 444 W Ocean Blvd Ste 1400 Long Beach, CA 90802 Tel: 562-435-3456 Fax: 562-435-6335 E-mail: vhaberbush@lbinsolvency.com About Max Express Max Express, Inc., is a trucking company located in Carson, California that provides trucking services throughout the western United States. It has approximately 30 trucks and 37 employees, including the truck drivers and principals of the Debtor. The Debtor currently rents real property located at 22420 S. Alameda 10 Street, Carson, CA 90810, for the premises used as its place of business. The Debtor sought protection under Chapter 11 of the Bankruptcy Code (Bankr. C.D. Cal. Case No. 16-14868) on April 15, 2016. The petition was signed by Richard Mo, secretary. The case is assigned to Judge Deborah J. Saltzman. The Debtor estimated both assets and liabilities in the range of $1 million to $10 million. MBAC FERTILIZER: Obtains Extension of CCAA Stay Period ------------------------------------------------------ MBAC Fertilizer Corp. on Aug. 17, 2016, disclosed that the Company and its wholly-owned subsidiaries, MBAC Opportunities and Financing Inc., MBAC International Holdings Cooperatie U.A. and MBAC (Barbados) Inc. (together with MBAC, the Applicants), have obtained an order from the Ontario Superior Court of Justice (Commercial List) extending the period of the Court-ordered stay of proceedings against the Applicants under the Companies' Creditors Arrangement Act (CCAA) until October 28, 2016. The Company has been operating under the protection of the CCAA since August 4, 2016. All inquiries regarding the Applicants' CCAA proceedings should be directed to the Monitor, Ernst & Young Inc. Information about the CCAA proceedings, including copies of all court orders and the Monitor's reports, is available at the Monitor's website: http://www.ey.com/ca/mbac. About MBAC MBAC -- http://www.mbacfert.com/-- is focused on becoming a significant integrated producer of phosphate fertilizers and related products in the Brazilian market. MBAC has an experienced team with significant experience in the business of fertilizer operations, management, marketing and finance within Brazil. MBAC owns and operates the Itafos Arraias SSP Operations, which consists of an integrated fertilizer producing facility comprised of a phosphate mine, a mill, a beneficiation plant, a sulphuric acid plant, an SSP plant and a granulation plant and related infrastructure located in central Brazil ("Itafos Operations"). The Itafos Operations are estimated to have production capacity of approximately 500,000 tonnes of SSP per annum. MBAC's exploration portfolio includes a number of additional exciting projects, which are also located in Brazil. The Santana Phosphate Project is a high-grade phosphate deposit located in close proximity to the largest fertilizer market of Mato Grosso State and animal feed market of Para State. MCGEE EQUIPMENT: Revised Plan Earmarks $60,000 for Unsecureds ------------------------------------------------------------- McGee Equipment Rental and Sales, Inc., filed with the U.S. Bankruptcy Court in Lafayette, Louisiana, a First Amended Plan and Disclosure Statement on Aug. 8, 2016. Allowed unsecured claims will share on a pro rata basis distributions totaling $60,000, which will be paid on a quarterly basis beginning the end of the first quarter after confirmation. Quarterly payments will be $3,000 per quarter. McGee believes there will be enough income in the future to pay claims as per the Plan. The Debtor has received a Deep Water Horizon settlement; net settlement proceeds to the Debtor is $250,000. The Debtor will use the proceeds from the Deep Water Horizon claim to apply directly to priority claims -- totaling $455,887 -- which payment will be made within 30 days of confirmation of the plan. The payment from the Deep Water Horizon settlement is not sufficient to pay priority claims in full and the Debtor will then pay priority claims as per the provisions outlined in the Plan. A copy of the First Amended Disclosure Statement is available at: http://bankrupt.com/misc/lawb15-51380-0276.pdf About McGee Equipment McGee Equipment Rental & Sales, Inc. sought protection under Chapter 11 of the Bankruptcy Code (Bankr. W.D. La. Case No. 15-51380) on Oct. 23, 2015. The petition was signed by Jacob Jarrell Lacour, controller and general manager. The company is in the business of equipment rental and sales. At the time of the filing, the Debtor disclosed $3.58 million in assets and $3.91 million in liabilities. The Debtor is represented by: William C. Vidrine Vidrine & Vidrine, PLLC 711 W. Pinhook Road Lafayette, LA 70503 Tel: 337-233-5195 E-mail: WilliamV@Vidrinelaw.com MEGA INC: Disclosures Okayed; Plan Hearing Set for Sept. 2 ---------------------------------------------------------- The Hon. Paul G. Hyman, Jr., of the U.S. Bankruptcy Court for the Southern District of Florida has approved Mega, Inc.'s first amended disclosure statement. A hearing to consider the confirmation of the plan of reorganization is scheduled for Sept. 2, 2016, at 9:30 a.m. As reported by the Troubled Company Reporter on Aug. 8, 2016, the general unsecured creditors will get 42.22% of their claims under the Debtor's proposed plan to exit Chapter 11 protection. The deadline for fee applications is Aug. 12, 2016. Aug. 19, 2016, is the deadline for objections to confirmation, the deadline for serving notice of fee applications, and the deadline for filing ballots accepting or rejecting Plan. The deadline for filing the report and confirmation affidavit and the deadline for individual debtor to file certificate for confirmation regarding payment of domestic support obligations and filing of required tax returns is Aug. 30, 2016. About Mega Inc. Mega, Inc., filed for Chapter 11 bankruptcy protection (Bankr. S.D. Fla. Case No. 15-25559) on Aug. 27, 2015. The Debtor is represented by Brett A. Elam, Esq. METROTEK ELECTRICAL: Taps Bressler Amery as Special Counsel ----------------------------------------------------------- MetroTek Electrical Services Company seeks approval from the U.S. Bankruptcy Court for the District of New Jersey to hire Bressler, Amery & Ross as its special counsel. Bressler will represent MetroTek Electrical in two lawsuits filed against the company in the Superior Court, Pennsylvania. The firm's professionals and their hourly rates are: Partners $220 - $600 Associates $165 - $315 Of Counsel $275 - $400 Paralegals $75 - $185 Jed Marcus, Esq., at Bressler, disclosed in a court filing that the firm is "disinterested" as defined in section 101(14) of the Bankruptcy Code. The firm can be reached through: Jed Marcus, Esq. Bressler, Amery & Ross 325 Columbia Turnpike Florham Park, NJ 07932 Tel: 973-514-1200 Fax: 973-514-1660 Email: jmarcus@bressler.com About MetroTek Electrical MetroTek Electrical Services Company sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D. N.J. Case No. 16-25628) on August 15, 2016. The petition was signed by Reiner Jaeckle, chief operating officer. The case is assigned to Judge Christine M. Gravelle. At the time of the filing, the Debtor disclosed $641,184 in assets and $2.56 million in liabilities. METROTEK ELECTRICAL: Taps Gorski & Knowlton as Legal Counsel ------------------------------------------------------------ MetroTek Electrical Services Company seeks approval from the U.S. Bankruptcy Court for the District of New Jersey to hire Gorski & Knowlton PC. The firm will serve as the Debtor's legal counsel in connection with its Chapter 11 case. Gorski & Knowlton will be paid $400 per hour for its services, and will receive reimbursement for work-related expenses. Allen Gorski, Esq., at Gorski & Knowlton, disclosed in a court filing that the firm is "disinterested" as defined in section 101(14) of the Bankruptcy Code. The firm can be reached through: Allen I. Gorski, Esq. Gorski & Knowlton PC 311 Whitehorse Avenue, Suite A Hamilton, NJ 08610 Tel: 609-964-4000 Fax: 609-585-2553 Email: agorski@gorskiknowlton.com About MetroTek Electrical MetroTek Electrical Services Company sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D. N.J. Case No. 16-25628) on August 15, 2016. The petition was signed by Reiner Jaeckle, chief operating officer. The case is assigned to Judge Christine M. Gravelle. At the time of the filing, the Debtor disclosed $641,184 in assets and $2.56 million in liabilities. METROTEK ELECTRICAL: Taps Lanciano & Associates as Special Counsel ------------------------------------------------------------------ MetroTek Electrical Services Company seeks approval from the U.S. Bankruptcy Court for the District of New Jersey to hire Lanciano & Associates as its special counsel. The Debtor tapped the firm to pursue potential legal malpractice claim, shareholder dispute, and collection of disputed accounts receivable. Lanciano & Associates will be paid $375 per hour for its services. Gaetano Lanciano, Esq., at Lanciano & Associates, disclosed in a court filing that the firm is "disinterested" as defined in section 101(14) of the Bankruptcy Code. The firm can be reached through: Gaetano C. Lanciano, Esq. Lanciano & Associates 2 Route 31 North Pennington, NJ 08534 Tel: 609-452-7100 About MetroTek Electrical MetroTek Electrical Services Company sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D. N.J. Case No. 16-25628) on August 15, 2016. The petition was signed by Reiner Jaeckle, chief operating officer. The case is assigned to Judge Christine M. Gravelle. At the time of the filing, the Debtor disclosed $641,184 in assets and $2.56 million in liabilities. MGM RESORTS: GPM to Transfer 4.95% Stake in MGM China to MRIH ------------------------------------------------------------- MGM Resorts International entered into a securities purchase agreement with MGM Resorts International Holdings, Ltd., a wholly owned subsidiary of the Company, Grand Paradise Macau Limited, a company incorporated in the Isle of Man and controlled by Ms. Pansy Ho, and Expert Angels Limited, a company incorporated in the British Virgin Islands and a wholly owned subsidiary of GPM. Pursuant to the terms of the Agreement, GPM will transfer to MRIH 188,100,000 ordinary common shares, or 4.95% of the outstanding ordinary common shares, of MGM China Holdings Limited, a company incorporated in the Cayman Islands and a subsidiary of the Company. In consideration for the MGM China shares, subject to certain conditions, the Company will issue to MRIH 7,060,492 shares of its common stock, par value $0.01, for delivery to EA and pay to GPM or its nominee an initial cash payment of $100 million. In addition, the Company has agreed to cause MRIH to pay GPM or its nominee a deferred cash payment of $50 million, which will be paid to GPM or its nominee over time in amounts equal to the ordinary dividends received on such MGM China Shares, with a final payment on the fifth anniversary of the closing date of the transaction if any portion of the $50 million remains unpaid at that time, subject to certain conditions. Following such transfer, the Company will beneficially own approximately 56% of the ordinary common shares of MGM China. The Shares have not been registered under the Securities Act of 1933, as amended, or any state securities law 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 Company is offering and selling the Shares to EA in reliance upon the exemption from registration provided by Section 4(a)(2) of the Securities Act and Regulation D and Regulation S promulgated thereunder. The Company relied, in part, upon representations from each of GPM and EA in the Agreement that it is an "accredited investor" as such term is defined in Rule 501 of Regulation D and that it is not a "U.S. person" as such term is defined in Rule 902 of Regulation S, as well as the fact that the transaction was conducted outside of the United States. In addition, the Company has a pre-existing relationship with the investors. 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 www.mgmresorts.com. MGM Resorts reported a net loss attributable to the Company of $447.72 million in 2015, a net loss attributable to the Company of $149.87 million in 2014 and a net loss attributable to the Company of $171.73 milion in 2013. As of Dec. 31, 2015, MGM Resorts had $25.21 billion in total assets, $17.45 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. MGM RESORTS: Offering $500 Million Senior Notes ----------------------------------------------- MGM Resorts International filed a free writing prospectus with the Securities and Exchange Commission in connection with an offering of $500,000,000 aggregate principal amount of 4.625% senior notes due 2026. The Notes have an offering price of 100%, plus accrued interest, if any, from Aug. 19, 2016. Interest are payable on March 1 and September 1, commencing March 1, 2017. Joint Physical Book-Running Managers: Barclays Capital Inc. Merrill Lynch, Pierce, Fenner & Smith Incorporated J.P. Morgan Securities LLC Joint Book-Running Managers: Citigroup Global Markets Inc. Deutsche Bank Securities Inc. BNP Paribas Securities Corp. SMBC Nikko Securities America, Inc. Credit Agricole Securities (USA) Inc. Fifth Third Securities, Inc. SunTrust Robinson Humphrey, Inc. Co-Managers: Scotia Capital (USA) Inc. Citizens Capital Markets, Inc. A full-text copy of the regulatory filing is available at: https://is.gd/aLA6b5 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 www.mgmresorts.com. MGM Resorts reported a net loss attributable to the Company of $447.72 million in 2015, a net loss attributable to the Company of $149.87 million in 2014 and a net loss attributable to the Company of $171.73 milion in 2013. As of Dec. 31, 2015, MGM Resorts had $25.21 billion in total assets, $17.45 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. MGM RESORTS: Revises Supplemental Guarantor Financial Information ----------------------------------------------------------------- MGM Resorts International filed a Current Report on Form 8-K with the Securities and Exchange Commission to revise supplemental guarantor financial information provided pursuant to Rule 3-10 of Regulation S-X within its Annual Report on Form 10-K for the year ended Dec. 31, 2015, which was originally filed with the Securities and Exchange Commission on Feb. 29, 2016. The Company's condensed consolidating balance sheet as of Dec. 31, 2015, and 2014 and the condensed consolidating statements of operations and comprehensive income and cash flows for the years ended Dec. 31, 2015, 2014, and 2013 included in Note 18 to the notes to consolidated financial statements in the Annual Report have been retrospectively adjusted to reflect the transactions that occurred between entities under common control. Accordingly, the real estate assets and associated operations in all periods included in Note 18 in the Annual Report were reclassified to conform to the current organizational structure. On April 25, 2016, MGM Growth Properties LLC, a subsidiary of the Company, completed its initial public offering of 57,500,000 of its Class A shares representing limited liability company interests (inclusive of the full exercise by the underwriters of their option to purchase 7,500,000 Class A shares) at an initial offering price of $21 per share. In connection with the IPO, the Company and MGP entered into a series of transactions and several agreements that, among other things, set forth the terms and conditions of the IPO and provide a framework for the Company’s relationship with MGP. MGP is organized as an umbrella partnership REIT (commonly referred to as an "UPREIT") structure in which substantially all of its assets and substantially all of its businesses are conducted through its operating partnership subsidiary, MGM Growth Properties Operating Partnership LP (the "Operating Partnership"). MGP contributed the proceeds from the IPO to the Operating Partnership in exchange for 26.7% of the units in the Operating Partnership. Pursuant to a master contribution agreement by and between the Company, MGP and the Operating Partnership, the Company contributed the real estate assets of The Mirage, Mandalay Bay, Luxor, New York-New York, Monte Carlo, Excalibur, the Park, Gold Strike Tunica, MGM Grand Detroit and Beau Rivage to newly formed subsidiaries and subsequently transferred 100% ownership interest in such subsidiaries to the Operating Partnership in exchange for Operating Partnership units in the Operating Partnership on the closing date of the IPO. Concurrently, pursuant to a master lease agreement by and between a subsidiary of the Company (the "Tenant") and a subsidiary of the Operating Partnership (the "Landlord"), the Tenant has leased the contributed real estate assets from the Landlord. All other information in the Annual Report remains unchanged. Separately, MGM Resorts filed a Current Report on Form 8-K to revise supplemental guarantor financial information provided pursuant to Rule 3-10 of Regulation S-X within its Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2016, which was originally filed with the Securities and Exchange Commission on May 6, 2016. 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 www.mgmresorts.com. MGM Resorts reported a net loss attributable to the Company of $447.72 million in 2015, a net loss attributable to the Company of $149.87 million in 2014 and a net loss attributable to the Company of $171.73 milion in 2013. As of Dec. 31, 2015, MGM Resorts had $25.21 billion in total assets, $17.45 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. MOBIVITY HOLDINGS: Incurs $996,000 Net loss in Second Quarter ------------------------------------------------------------- Mobivity Holdings Corp. filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $996,000 on $2.07 million of revenues for the three months ended June 30, 2016, compared to a net loss of $1.32 million on $1.09 million of revenues for the same period during the prior year. For the six months ended June 30, 2016, the Company reported a net loss of $2.35 million on $3.91 million of revenues compared to a net loss of $3.05 million on $2.03 million of revenues for the six months ended June 30, 2015. As of June 30, 2016, Mobivity had $8.78 million in total assets, $2.84 million in total liabilities and $5.93 million in total stockholders' equity. As of June 30, 2016, the Company had current assets of $3.096 million, including $1.036 million in cash, $1.00 million in restricted cash and current liabilities of $2.62 million, resulting in working capital of $475,000. As of Aug. 15, 2016, the Company believes it has working capital on hand to fund its current level of operations at least through the end of the year. However, there can be no assurance that it will not require additional capital. "If we require additional capital, we will seek to obtain additional working capital through the sale of our securities and, if available, bank lines of credit. However, there can be no assurance we will be able to obtain access to capital as and when needed and, if so, the terms of any available financing may not be subject to commercially reasonable terms," the Company stated in the report. The Company's quarterly report on Form 10-Q is available from the SEC website at https://is.gd/1jlkl9 About Mobivity Holdings Mobivity Holdings Corp. was incorporated as Ares Ventures Corporation in Nevada in 2008. On Nov. 2, 2010, the Company acquired CommerceTel, Inc., which was wholly-owned by CommerceTel Canada Corporation, in a reverse merger. Pursuant to the Merger, all of the issued and outstanding shares of CommerceTel, Inc., common stock were converted, at an exchange ratio of 0.7268-for-1, into an aggregate of 10,000,000 shares of the Company's common stock, and CommerceTel, Inc., became a wholly owned subsidiary of the Company. In connection with the Merger, the Company changed its corporate name to CommerceTel Corporation on Oct. 5, 2010. In connection with the Company's acquisition of assets from Mobivity, LLC, the Company changed its corporate name to Mobivity Holdings Corp. and its operating company to Mobivity, Inc, on Aug. 23, 2012. Mobivity reported a net loss of $6.13 million on $4.61 million of revenues for the year ended Dec. 31, 2015, compared to a net loss of $10.44 million on $4 million of revenues for the year ended Dec. 31, 2014. NATIONAL CINEMEDIA: Prices Offering of $250M 5.75% Senior Notes --------------------------------------------------------------- National CineMedia, LLC, and National CineMedia, Inc. (NASDAQ: NCMI), the managing member and owner of 43.6% of NCM LLC, announced that NCM LLC has priced its private placement $250 million aggregate principal amount of 5.75% Senior Notes due 2026. The private placement of the Notes is expected to close on Friday, Aug. 19, 2016, subject to certain closing conditions. The Notes will be senior unsecured obligations of NCM LLC, and will bear interest at a fixed rate. NCM LLC intends to use the net proceeds from the proposed offering to finance the redemption of its $200 million Senior Notes due 2021 and to pay related fees and expenses. Any remaining net proceeds will be used for general corporate purposes, including the repayment of any outstanding balances under NCM LLC's revolving credit facility. The Notes have not been registered under the Securities Act of 1933, as amended, or applicable state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state securities laws. NCM LLC plans to offer and sell the Notes only to qualified institutional buyers pursuant to Rule 144A under the Securities Act and to persons outside the United States pursuant to Regulation S under the Securities Act. 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 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. * * * 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. NATIONAL CINEMEDIA: Proposes Private Offering of $250M Notes ------------------------------------------------------------ National CineMedia, LLC and National CineMedia, Inc. (NASDAQ: NCMI), the managing member and owner of 43.6% of NCM LLC, announced that NCM LLC plans to offer in a private placement $250 million aggregate principal amount of Senior Notes due 2026. The Notes will be senior unsecured obligations of NCM LLC, and will bear interest at a fixed rate. NCM LLC intends to use the net proceeds from the proposed offering to finance the redemption of its $200 million Senior Notes due 2021 and to pay related fees and expenses. Any remaining net proceeds will be used for general corporate purposes, including the repayment of a portion of outstanding borrowings under NCM LLC's revolving credit facility. The Notes have not been registered under the Securities Act of 1933, as amended, or applicable state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state securities laws. NCM LLC plans to offer and sell the Notes only to qualified institutional buyers pursuant to Rule 144A under the Securities Act and to persons outside the United Sates pursuant to Regulation S under the Securities Act. 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 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. * * * 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. NEONODE INC: To Raise $8.7 Million in Private Placement ------------------------------------------------------- Neonode Inc. has entered into definitive agreements with institutional and accredited investors for the private placement of $8.7 million of Neonode's common stock and common stock warrants. Pursuant to the terms of the private placement, Neonode has agreed to sell an aggregate total of 8,627,352 shares of common stock. Of this amount, $8.2 million will be sold at a price of $1.00 per share to outside investors and an aggregate of $500,000 will be sold at a price of $1.17 per share to Thomas Eriksson, chief executive officer of Neonode, and Remo Behdasht, SVP AirBar Devices at Neonode. Certain outside investors whose purchase of shares would make them the beneficial owners of more than 9.99% of Neonode's outstanding common stock will purchase pre-funded warrants in lieu of common stock. These pre-funded warrants for outside investors are included in the aggregate share total above. Additionally, for all investors in the private placement including Mr. Eriksson and Mr. Behdasht, Neonode will issue warrants to purchase an aggregate of 4,313,676 shares of common stock at an exercise price of $1.12 per share that will expire five and one-half years from the date on which the warrants are issued and are non-exercisable for the first six months. If the warrants are fully exercised, Neonode will receive an additional $4.8 million. The closing of the private placement offering is subject to the satisfaction of customary closing conditions. Craig-Hallum Capital Group LLC is acting as exclusive placement agent in connection with the offering. The securities sold in the private placement have not been registered under the Securities Act of 1933, as amended, or state securities laws and may not be offered or sold in the United States absent registration with the Securities and Exchange Commission (SEC) or an applicable exemption from such registration requirements. 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. 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. NEOVASC INC: $70-Mil. Litigation Award Raise Going Concern Doubt ---------------------------------------------------------------- Neovasc Inc. filed with the Securities and Exchange Commission its quarterly report on Form 6-K disclosing a net loss of $83.69 million on $1.71 million of revenue for the three months ended June 30, 2016, compared to a net loss of $6.75 million on $2.93 million of revenue for the same period in 2015. For the six months ended June 30, 2016, the Company listed a net loss of $94.57 million on $3.72 million of revenue, compared to a net loss of $11.71 million on $5.23 million of revenue for the same period in the prior year. As of June 30, 2016, Neovasc had $44.45 million in total assets, $75.81 million in total liabilities and a total stockholders' equity of -$31.35 million. As at June 30, 2016, the Company had $36,277,793 in cash and cash equivalents. On May 19, 2016, following a trial in Boston, Massachusetts, a jury awarded $70 million on certain trade secret claims made by CardiAQ Valve Technologies, Inc. ("CardiAQ"). Unless the Company is successful in post-trial motions and/or an appeal of the verdict, or otherwise is successful in reducing the amount of the $70 million award, the Company will require significant additional financing in order to pay the damages and to continue to operate its business. There can be no assurance that such financing will be available on favorable terms, or at all. A copy of the Form 6-K is available at: http://bit.ly/2aM0ecu About Neovasc Based in Richmond, BC, Canada, Neovasc Inc. is a specialty medical company that develops, manufactures and markets cardiovascular products. The Company's main product is the Tiara, a transcatheter mitral valve device used to treat mitral valve disease. The Tiara, which the Company started developing in the second quarter of 2011, can be implanted through minimally invasive surgery to individuals who experience mitral regurgitation as a result of mitral heart valve disease. NET ELEMENT: Doubts Ability to Continue as Going Concern -------------------------------------------------------- Net Element, Inc., filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $5.38 million on $13.7 million of total revenues for the three months ended June 30, 2016, compared to a net loss of $1.77 million on $6.90 million of total revenues for the three months ended June 30, 2015. As of June 30, 2016, Net Element had $22.1 million in total assets, $15.1 million in total liabilities, and $6.97 million in total stockholders' equity. The Company sustained a net loss of approximately $7.3 million for the six month period ended June 30, 2016, an accumulated deficit of $151.1 million and negative working capital of $4.0 million at June 30, 2016. These conditions raise substantial doubt about our ability to continue as a going concern. Daszkal Bolton LLP's reports on the Company's consolidated financial statements for the years ended Dec. 31, 2015 contained an explanatory paragraph expressing substantial doubt as to the Company's ability to continue as a going concern. "We are continuing with our plan to further grow and expand our payment processing operations in emerging markets, particularly in Russia and surrounding countries. Management believes that its current operating strategy will provide the opportunity for us to continue as a going concern as long as we are able to obtain additional financing; however, there is no assurance this will occur," the Company stated in the report. The Company's quarterly report on Form 10-Q is available from the SEC website at https://is.gd/tR7Cu9 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. NET ELEMENT: Reports Second Quarter 2016 Results ------------------------------------------------ Net Element, Inc., reported financial results for the second quarter ended June 30, 2016 and provided an update on recent strategic and operational initiatives. For second quarter ended June 30, 2016, net revenues increased 98% to $13,692,848 as compared to $6,906,916 in the prior year. The $6,785,932 increase in net revenues is primarily due to growth in the Company's three segments: (1) North America Transaction Solution segment, (2) Mobile Solutions segment and (3) Online Solutions. "We are pleased with our continued growth. Our results are a reflection of our ability to implement our business objectives," commented Oleg Firer, CEO of Net Element. "We are excited about our strategic initiatives for the remainder of the year." The Company's combined businesses processed 41.6 million transactions for the three months ended June 30, 2016, as compared to 33.6 million transactions processed for the three months ended June 30, 2015. North America Transaction Solutions provided the majority of the increase going from 12.4 million transactions processed in the three months ended June 30, 2015, to 21.1 million transactions processed for the three months ended June 30, 2016. This was offset by a decrease of 0.9 million transactions processed from our Mobile Solutions segment. The Company processed $474 million in payments for the three months ended June 30, 2016, as compared to $264 million on a constant dollar basis for the three months ended June 30, 2015. North America Transaction Solutions was responsible for $132 million of the $210 million increase and Online Solutions contributed an addition $74 million in payments processed. The Company reported an adjusted net loss attributable to stockholders of $1,168,998, or $0.10 per share, for the three months ended June 30, 2016, as compared to an adjusted net loss attributable to stockholders of $3,184,950 or $0.64 per share, for the three months ended June 30, 2015. The adjusted net loss decrease of $2,015,952 was primarily due to reduced interest expense of $845,615, higher gross margin dollars ($765,958) from more volume and a $584,083 decrease in general and administrative expenses. Net revenues consist primarily of payment processing fees. Net revenues were $13,692,848 for the three months ended June 30, 2016 as compared to $6,906,916 for the three months ended June 30, 2015. Included in mobile solutions revenue for the three months ended June 30, 2016 is $1,575,140 of branded content revenue. The remaining $204,568 is part of service fees revenue. The increase in net revenues is primarily a result of organic net increases in merchants. In addition, the Company consolidated online payment revenues for PayOnline effective May 20, 2015, and began reporting mobile commerce revenues for branded content in the fourth quarter of 2015. A full-text copy of the press release is available for free at: https://is.gd/PAH0BS 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. NIKAI PR: Hires Ruben Gonzalez as Attorney ------------------------------------------ Nikai PR, Corp., seeks authority from the U.S. Bankruptcy Court for the District of Puerto Rico to employ Ruben Gonzalez Marrero & Associates as attorney to the Debtor. Nikai PR requires Ruben Gonzalez to represent the Debtor in the bankruptcy proceeding. Ruben Gonzalez will be paid at these hourly rates: Ruben Gonzalez $275 Ruben Gonzalez will be paid the amount of $5,600 as retainer. Ruben Gonzalez will also be reimbursed for reasonable out-of-pocket expenses incurred. Ruben Gonzalez, member of Ruben Gonzalez Marrero & Associates, assured the Court that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtors and their estates. Ruben Gonzalez can be reached at: Ruben Gonzalez Marrero, Esq. RUBEN GONZALEZ MARRERO & ASSOCIATES Santa Rosa Bayamon, P.R. 00959 Tel: (787) 798-8600 E-mail: rgm@microjuris.com About Nikai PR Nikai PR, Corp. filed a Chapter 11 petition (Bankr. D.P.R. Case No. 16-06097) on July 30, 2016, and is represented by Ruben Gonzalez Marrero, Esq., at Ruben Gonzalez Marrero & Asociados. NO PLACE LIKE HOME: Amended Plan to Pay All Creditors in Full ------------------------------------------------------------- No Place Like Home, Inc., filed with the U.S. Bankruptcy Court for the Western District of Tennessee its First Amended Plan of Reorganization and Disclosure Statement on Aug. 8, 2016. In general, the Amended Plan pays all creditors in full. Priority Creditors will receive payment in full following Confirmation of the Amended Plan on or about the Effective Date. Unsecured Creditors -- Estimated Amount: $2,666,565 -- will receive an initial distribution upon Confirmation of the Amended Plan and the remaining portion of allowed claims will be paid over a maximum of four years following Confirmation. Unsecured Creditors will also receive 3% interest per annum, on any unpaid balance of each Allowed Claim, with interest accruing on the latter of the Effective Date or date the Court orders the allowance of such Allowed Claim. The Amended Plan also provides for ownership of the business to be retained by the current equity holder. A copy of the First Amended Disclosure Statement is available at: http://bankrupt.com/misc/tnwb15-31133-0230.pdf The Company is represented by: E. Franklin Childress, Jr., Esq. M. Ruthie Hagan, Esq. BAKER, DONELSON, BEARMAN CALDWELL & BERKOWITZ, PC 165 Madison Avenue, Suite 2000 Memphis, TN 38103 Tel: (901) 577-2147 Fax: (901) 577-0845 E-mail: fchildress@bakerdonelson.com About No Place Like Home No Place Like Home, Inc., based in Collierville, Tenn., filed a Chapter 11 petition (Bankr W.D. Tenn. Case No. 15-31133) on Nov. 20, 2015. Hon. David S. Kennedy presides over the case. E. Franklin Childress, Jr., Esq., and M. Ruthie Hagan, Esq., at Baker, Donelson, Bearman, Caldwell & Berkowitz P.C., serve as counsel to the Debtor. In its petition, the Debtor estimated $1 million to $10 million in assets and liabilities. The petition was signed by John Flood, president. NO PLACE LIKE HOME: Glasper Objects to Exit Plan ------------------------------------------------ Derrick Glasper filed an objection to the disclosure statement explaining the Plan of Reorganization of No Place Like Home, Inc., citing these deficiencies: -- Misclassification of Claims The Debtor's Disclosure Statement and Plan identify a special Class 2 of unsecured claims of under $3,000. The Plan provides for preferential treatment of these creditors although there is no indication that they are not similar to the Class 3 of General Unsecured Claims. The plan proponent must present a reasonable justification for such separately classifying claims that are substantially similar. -- Release of personal liability of the Floods At the heart of the Debtor's Plan is a requirement the creditors agree to release John and Mary Flood from any personal liability on the wage claims. While the Floods propose to make a one-time $900,000 payment to the Plan, they do not attempt in the Disclosure Statement to analyze the appropriateness of this amount for the payment of unsecured creditors' claims other than to state that it is the number the Floods are willing to pay for these releases. The Floods' potential liability is in excess of $3.6 million. Without further analysis of the risks involved, creditors have no way to make an informed decision on whether this is a good settlement or not. -- Other alternatives The Disclosure Statement should include information about whether or not a plan is even necessary under the circumstances. For example, the Disclosure Statement does not adequately describe the possibility of a Sec. 363 sale of the NPLH business as a "going concern" or a sale outside of bankruptcy which would allow the creditors to be paid in full with interest without delay and retain the additional security of possible claims against the Floods. It is also possible that the Debtor could receive financing for distributions to creditors by pledging accounts receivable to a secured lender outside of bankruptcy. The Disclosure Statement clearly suggests that the company is solvent and capable of a more advantageous distribution to its creditors than provided in the Plan. -- Risks of non-payment The way the Plan and Disclosure Statement are written, it is unclear what happens to the creditors if the Plan fails to meet the benchmarks, but it does make clear that Mary Flood will retain ownership of the company even if these benchmarks are not made. The possibility exists that, at the end of the four years, creditors will still be owed money but Mary Flood will be able to continue ownership of a profitable business and escape full payment to the Debtor's creditors. -- Evaluation of retained equity To the extent that Mary Flood seeks retention of ownership, even if the Plan fails, that retention would violate the "absolute priority rule," and cannot be crammed down on a dissenting class of creditors. The Disclosure Statement indicates that the monies being paid by the Floods through the Plan are for releases that they are receiving as consideration for the creditors abstaining from seeking redress against the Floods personally, and there is no mention as to whether these monies are for "new value," although the Plan provides for new stock to be issued to the Floods which would imply new capital rather than a payment for releases. Bankruptcy courts often condition the allowance of shareholders to retain ownership based upon their contribution of "new value." There is no evaluation of the equity in the company in the Disclosure Statement, other than the liquidation analysis, which does not take into consideration the going concern value of the company or the ability of the Debtor or a trustee to preserve that equity for the creditors. -- Liquidation analysis The Debtor misrepresented the collectability of receivables in the unlikely situation that liquidation would involve cessation of the business. The discounts in collection of receivables are vastly overestimated. This is true especially in light of the Debtor's improved collection procedures since the filing of the Petition and the general history of collection of accounts receivable, most of which is from governmental entities and insurance companies, and whose payment is virtually assured if the paperwork for collection is timely and accurately processed. Moreover, the liquidation analysis assumes that any liquidating trustee appointed in the case to collect receivables would not be in a position to hire the existing employees or other experts in accounts receivable collection, to continue with the company's current successes in collecting receivables. There is no explanation of the possibility of a liquidating trustee operating the company as a going concern either in a Chapter 7 or as a trustee in the existing Chapter 11. -- Continuing salaries The Debtor's Disclosure Statement provides inadequate and misleading information regarding the prOposed salaries of officers, particularly Mrs. Flood, who will be retained at full salary of $180,000.00 per year when she has virtually retired from management and provides little or no service to the company on an ongoing basis other than to receive distributions as an owner. For all practical purposes, the $180,000.00 salary would be a distribution to an owner ahead of unsecured creditors and in violation of the "absolute priority rule." -- Interest The existing Plan does not provide for interest on claims of creditors in violation of the absolute priority rule. It is anticipated that the Plan will be modified to include interest from and after confirmation at 3% interest. To date, there is no information relating to how the 3% was calculated or if it adequately takes into consideration the risk of nonpayment as well as deferred compensation. In a solvent estate, that interest should run from at least the filing of the bankruptcy petition in order not to violate the absolute priority rule. Any payment of interest should be applicable not only to the unsecured creditors whose payments are to be deferred, but also to priority creditors whose payments have been deferred post-petition until confirmation, and to contingent claims. Calculation of that interest should be taken into consideration in estimating future payment requirements of the Debtor. -- Avoidance actions Theh Debtor has provided an inadequate analysis of certain possible assets, including avoidance actions under state and federal law. There were numerous conveyances by way of distributions to the Floods in the four-year period prior to the filing of the petition when there was inadequate capital in the company to cover contingent liabilities, such as wage claims. Recovery of these claims against the Floods could be available to pay creditors much faster than the proposed deferred payments. The amount of such transfers should be disclosed. Glasper is represented by: David J. Cocke, Esq. Evans Petree PC 1000 Ridgeway Loop Road, Suite 200 Memphis, TN 38120 Tel: (901) 525-6781 About No Place Like Home No Place Like Home, Inc., based in Collierville, Tenn., filed a Chapter 11 petition (Bankr W.D. Tenn. Case No. 15-31133) on Nov. 20, 2015. Hon. David S. Kennedy presides over the case. E. Franklin Childress, Jr., Esq., and M. Ruthie Hagan, Esq., at Baker, Donelson, Bearman, Caldwell & Berkowitz P.C., serve as counsel to the Debtor. In its petition, the Debtor estimated $1 million to $10 million in assets and liabilities. The petition was signed by John Flood, president. NORMAN EDWARD MCMAHON: Unsecureds to be Paid 50% under Plan ----------------------------------------------------------- Norman Edward McMahon filed a Chapter 11 plan and disclosure statement on Aug. 8, 2016. The Debtor's Plan of Reorganization contains eight classes. Class 1 is all priority Claims. Classes Two through Six are classes which each contain a separate secured claim, namely the respective secured claims of NCM; Wells Fargo Home Mortgage; ESSA; US Bank, as Custodian for PFS Financial I, LLC; and Benjamin Burrows. Class 7 is the priority portion of the claim of the Pennsylvania Department of Revenue. Class 8 is the residual class of unsecured creditors. Under the Plan, unsecured creditors will be paid 50% on the effective date from proceeds from operation of the Debtor's business. Unsecured claims total approximately $25,000, including the approximately $20,000 contested claim of the Debtor's prior bankruptcy counsel. A copy of the Disclosure Statement is available at: http://bankrupt.com/misc/paeb16-11874-0059.pdf Norman Edward McMahon filed a Chapter 13 bankruptcy petition (Bankr. E.D. Penn. Case No. 16-11874) on March 18, 2016. The case was later converted to Chapter 11. The Debtor is the owner and president of Payall Solutions, LLC, a payroll processing firm. The Debtor is represented by: DAVID A. SCHOLL, Esq. 512 Hoffman Street Philadelphia, PA 19148 Tel: 610-550-1765 NORTHERN OIL: Sacks CEO Over Alleged Securities Act Violation ------------------------------------------------------------- Northern Oil and Gas, Inc., announced that Michael L. Reger has been terminated as Northern's chief executive officer and has ceased being a member of Northern's Board of Directors, effective Aug. 16, 2016. Thomas W. Stoelk has been named interim chief executive officer. Mr. Stoelk has served in several executive positions in the oil and gas industry over the last 25 years and has been Northern's Chief Financial Officer since December 2011. Prior to joining Northern, Mr. Stoelk served as the vice president of finance and chief financial officer at Superior Well Services, Inc. from 2005 to 2011, as the chief financial officer of Great Lakes Energy Partners, LLC from 1999 to 2005 and as the senior vice president of Finance and Administration for Range Resources Corporation from 1994 to 1999. Chad Allen, Northern's existing corporate controller, has been named to the position of chief accounting officer. Chad has over 10 years of public accounting experience with firms servicing public companies. "Since joining Northern in 2011, Tom Stoelk has done an extraordinary job of overseeing the financial and administrative functions of the company and has successfully implemented our disciplined capital allocation protocols, which have benefited the company greatly over the last few years," stated Richard D. Weber, Chairman of the Board of Directors. "Tom and the rest of the team at Northern have the full support and confidence of the Board to continue executing our proven strategy of acquiring and producing non-operated oil and gas interests in the Bakken Shale." In light of the challenges of operating in a lower commodity price environment, Northern's Board has been evaluating strategic alternatives to increase shareholder value. To that end, the company engaged Tudor, Pickering, Holt & Co. as its financial advisor. "We are committed to positioning Northern to take advantage of opportunities for growth in an industry that is beginning to emerge from the worst commodity price correction in the last thirty years," stated Mr. Stoelk. "We are fortunate to maintain access to over $220 million of unused capacity under our senior secured revolving credit facility and don't face a bond maturity until 2020." There can be no assurance that the review of strategic alternatives will result in a transaction. Northern does not intend to comment further regarding the evaluation of strategic alternatives. As previously disclosed, the Company has cooperated with the Securities and Exchange Commission in connection with an ongoing investigation of 2012 trading patterns in the securities of Dakota Plains Holdings, Inc. Mr. Reger was an initial investor in Dakota Plains in 2008. In connection with that investigation, on Aug. 11, 2016, Mr. Reger notified the Company that he had received a "Wells Notice" from the Staff of the SEC. The Wells Notice stated that the Staff has made a preliminary determination to recommend that the SEC institute an enforcement action against Mr. Reger, alleging violations of certain federal securities laws, including Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The Wells Notice is neither a formal allegation nor a finding of wrongdoing. It allows the subject of the Wells Notice the opportunity to provide reasons of law, policy or fact as to why the proposed enforcement action should not be filed and to address the issues raised by the Staff before any decision is made by the SEC on whether to authorize the commencement of an enforcement proceeding. The Company said it has never owned any interest in Dakota Plains. Based on the information available to it, the Company does not believe that it, or any conduct by the Company, is the focus of any investigation by a governmental agency regarding this matter. The Company has fully cooperated with the SEC in this matter and intends to continue to do so. About Northern Oil Northern Oil and Gas, Inc. is an exploration and production company with a core area of focus in the Williston Basin Bakken and Three Forks play in North Dakota and Montana. More information about Northern Oil and Gas, Inc. can be found at http://www.NorthernOil.com/ Northern Oil reported a net loss of $975 million in 2015 following net income of $164 million in 2014. As of June 30, 2016, Northern Oil had $465.38 million in total assets, $895.18 million in total liabilities and a $429.79 million total stockholders' deficit. O'BAR DEVELOPMENT: Court OKs Use of Cash Until Confirmation ----------------------------------------------------------- Judge Melvin S. Hoffman of the U.S. Bankruptcy Court for the District of Massachusetts authorized O'Bar Development, Inc.'s use of cash collateral through the date of the hearing of the confirmation of the Debtor's Second Amended plan. The Debtor was directed to file a proposed Order on or before August 12, 2016. A full-text copy of the Order dated August 9, 2016 is available at https://is.gd/8I59eY OCULUS INNOVATIVE: Needs More Capital to Continue as Going Concern ------------------------------------------------------------------ Oculus Innovative Sciences, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q, disclosing a net loss of $2.57 million on $3.81 million of total revenues for the three months ended June 30, 2016, compared with a net loss of $2.34 million on $3.68 million of total revenues for the same period in 2015. The Company's balance sheet at June 30, 2016, showed $11.32 million in total assets, $3.57 million in total liabilities, and stockholders' equity of $7.75 million. The Company reported a net loss of $2,568,000 for the three months ended June 30, 2016. At June 30, 2016 and March 31, 2016, the Company's accumulated deficit amounted to $154,943,000 and $152,375,000, respectively. The Company had working capital of $6,965,000 and $9,337,000 as of June 30, 2016 and March 31, 2016, respectively. The Company expects to continue incurring losses for the foreseeable future and may need to raise additional capital to pursue its product development initiatives, penetrate markets for the sale of its products and continue as a going concern. Management believes that the Company has access to additional capital resources through possible public or private equity offerings, debt financing, corporate collaborations or other means; however, the Company cannot provide any assurance that other new financing will be available on commercially acceptable terms, if needed. If the economic climate in the U.S. deteriorates, the Company's ability to raise additional capital could be negatively impacted. If the Company is unable to secure additional capital, it may be required to curtail its research and development initiatives and take additional measures to reduce costs in order to conserve its cash in amounts sufficient to sustain operations and meet its obligations. These measures could cause significant delays in the Company's efforts to commercialize its products, which is critical to the realization of its business plan and the future operations of the Company. These matters raise substantial doubt about the Company's ability to continue as a going concern. A copy of the Form 10-Q is available at: http://bit.ly/2b7qX1i About Oculus Innovative Sciences Oculus Innovative Sciences, Inc. -- http://www.oculusis.com/-- is a specialty pharmaceutical company dedicated to identifying, developing and commercializing unique, affordable differentiated therapies to improve the lives of patients with dermatologic diseases or conditions. The Company's products, which are sold throughout the United States and internationally, have improved patient outcomes for more than five million patients globally by treating and reducing certain topical skin diseases including acne, atopic dermatitis, scarring, infections, itch, pain and harmful inflammatory responses. Oculus Innovative Sciences is currently focusing on the development and commercialization of therapeutic solutions in medical dermatology to treat or reduce skin conditions, such as acne, atopic dermatitis and scarring. OI SA: Felsberg Avogados, Morrison & Foerster Joins Deal Team ------------------------------------------------------------- ACGM, Integra Associados, Felsberg Advogados, Morrison & Foerster, Joao Cox (former CEO of Claro Brasil) and Mario Cesar Araujo (former CEO of TIM) (the "Team") on Aug. 18, 2016, disclosed that they are working together on a financial and operational restructuring plan in respect of the Brazilian telecommunications company Oi S.A ("Oi" or the "Company"). Oi, one of the largest players in the Brazilian Telecom market, with over 70 million customers and more than 15,000 employees, filed for judicial recovery ("JR") before a court in Rio de Janeiro on June 20, 2016. The Company, which is burdened by debt with a face-value in excess of US$18 billion, must now present a restructuring plan to the bankruptcy court and have it approved by a majority of creditors. The Team encompasses a seasoned group of restructuring practitioners, including legal and financial experts who have experience in the wide-range of jurisdictions relevant to the Oi restructuring such as Brazil, the U.S., the UK and the Netherlands. Thomas Felsberg, founding partner of Felsberg Advogados, one of the most prominent bankruptcy and restructuring lawyers in Brazil, has assisted in the development of the current Brazilian bankruptcy and restructuring law. Along with Mr. Felsberg, skilled restructuring partners Paulo Campana, Fabiana Solano and a multidisciplinary team comprised of partners and associates with a wide expertise in insolvency, corporate, regulatory and litigation matters will provide assistance in all matters related to Brazilian law. The Team is complemented by multiple lawyers from Morrison & Foerster, which has one of the strongest business restructuring and insolvency groups in the legal industry, having advised on many of the most complex matters. Morrison & Foerster lawyers on the team include the Hon. James Peck, a former United States Bankruptcy Judge for the Southern District of New York, as well as Sonya Van de Graaff and Peter Declercq, both highly recognized global restructuring and insolvency lawyers who provide comprehensive counsel to distressed investors and represent formal and ad hoc creditor groups. Particularly important to the success of the Team's plan will be the operational restructuring, which leverages the expertise of former telecom CEOs Joao Cox and Mario Cesar Araujo. During Joao's tenure as CEO of Claro Brazil (controlled by America Movil, and the third largest mobile operator in Brazil), EBITDA rose from minus R$300 million to R$3.3 billion. Mario's tenure as the CEO of TIM (controlled by Telecom Italia, and the second largest mobile operator in Brazil) was marked by a rise in the price of the firm's ADRs from US$7.13 to US$39.65. The combined expertise of Joao and Mario is further enhanced by the turnaround expertise of Integra Associados. The Sao Paulo based firm of the leading Brazilian restructuring specialist Renato Carvalho Franco, has worked on some of the largest Brazilian restructurings to date, including Eneva (former MPX) and Parmalat. New York based investment banking boutique ACGM, working alongside Integra Associados, has focused on the financial and capital markets aspects of the plan. ACGM's CEO Carlos Abadi has been involved in numerous international restructuring transactions, including the Refco bankruptcy resolution and the settlement of claims related to Allied Irish Bank. In 2013 ACGM worked on the first ever pre-packaged chapter 11 debt restructuring in Latin America – Newland International Properties, Corp. The Team seeks constructive, non-adversarial dialogue with the Company and other stakeholders, in order to deliver a successful restructuring of Oi. The plan recognizes the importance of Oi within the Brazilian telecommunications sector and the wider economy. Although Oi faces major challenges, the Team also understands the company's strengths and growth potential. About Integra Associados Integra Associados is a Brazilian consultancy firm rendering advisory services on planning and implementing corporate change, including restructurings, with an experienced and hands-on team. Integra was founded in 2003 by Renato Carvalho Franco, former M&A director at Bank of America and CEO of Telesystem International Wireless in Brazil. During the last 10 years Integra has participated in several restructuring projects, with more than R$ 15 Bn in debt restructurings in Brazil. Integra has advised clients in several sectors including energy, food and beverages, auto parts forging and casting, services outsourcing, chemical distribution, wholesale distribution chains, sugar and ethanol, and consumer electronics, among others. The Integra team is comprised of a group of experienced professionals and associates with solid backgrounds in high-level company management, restructuring and corporate finance. About Morrison & Foerster Morrison & Foerster is a global firm of exceptional credentials. Its clients include some of the largest financial institutions, investment banks, Fortune 100, and technology and life sciences companies. The Financial Times has named the firm in its lists of most innovative law firms in North America and Asia every year that it has published its Innovative Lawyers Reports in those regions. In the past few years, Chambers USA has honored MoFo's Bankruptcy and IP teams with Firm of the Year awards, the Corporate/M&A team with a client service award, and the firm as a whole as Global USA Firm of the Year. Morrison & Foerster's Business Restructuring & Insolvency Group has one of the strongest practices in the industry and has advised on many of the most complex matters in recent years. Some of MoFo's team members' most recent high-profile cases include representing: -- The Dutch liquidator of the Dutch finance company OSX Leasing Group B.V., a group company in Brazilian OSX Brasil S.A. -- An ad hoc group of noteholders in the insolvencies of Lehman Brothers Treasury Company B.V. in the Netherlands and Lehman Brothers Holdings Inc. in the U.S. -- The creditors' committee in the chapter 11 case of Energy Future Holdings -- The winding-up board of LBI (formerly Landsbanki) through its cross-border restructuring and its filed composition. About Felsberg Advogados Felsberg Advogados is a Brazilian full-service law firm with experience in complex business transactions, such as project finance transactions, corporate restructurings, and mergers and acquisitions, and a tradition of exceptional quality and personal service. Well-known for its work in global transactions, Felsberg Advogados has a dynamic team of professionals with extensive international exposure, including working with foreign parties and issues and sensitive to foreign cultural matters in negotiations and transactions. Felsberg Advogados is particularly known as one of the top tier law firms for matters related to insolvency and restructuring. The firm is representing or has represented debtors, creditors and investors in some of the highest profile cases filed in Brazil, such as Parmalat, Rede Energia, OGX/OSX, OAS and Sete Brasil. About ACGM Founded in 1991, ACGM -- http://www.acgm.com-- is an investment banking boutique which specializes in three core areas, Emerging Markets, Financial Institutions and Restructuring & Special Situations. ACGM's team works on a range of transactions, including: Mergers & Acquisitions, Debt & Equity Capital Markets issues and Recapitalizations. It caters to a global client base which includes companies, governments and financial institutions across North America, Latin America, Europe and the Middle East. About Oi SA Headquartered in Rio de Janeiro, and operating almost exclusively within Brazil, the Oi Group provides services like fixed-line data transmission and network usage for phones, internet, and cable, Wi-Fi hot-spots in public areas, and mobile phone and data services, and employs approximately 142,000 direct and indirect employees. Ojas N. Shah filed a Chapter 15 petition for Oi S.A. (Bankr. S.D.N.Y. Case No. 16-11791), Oi Movel S.A. (Bankr. S.D.N.Y. Case No. 16-11792), Telemar Norte Leste S.A. (Bankr. S.D.N.Y. Case No. 16-11793), and Oi Brasil Holdings Cooperatief U.A. (Bankr. S.D.N.Y. Case No. 16-11794) on June 21, 2016. The case is assigned to Judge Sean H. Lane. The Chapter 15 Petitioner is represented by John K. Cunningham, Esq., and Mark P. Franke, Esq., at White & Case LLP, in New York; and Jason N. Zakia, Esq., Richard S. Kebrdle, Esq., and Laura L. Femino, Esq., at White & Case LLP, in Miami, Florida. OLGA'S KITCHEN: Taps Plante & Moran to Audit 401k Plan ------------------------------------------------------ Olga's Kitchen, Inc. seeks approval from the U.S. Bankruptcy Court for the Eastern District of Michigan to hire Plante & Moran, PLLC. The Debtor proposes to hire the firm for the required limited scope audit of its 401k plan for the year ended December 31, 2015, according to court filings. The firm's professionals and their hourly rates are: David Herrington $410 S. Dykowski $230 Junior Audit Staff $110 David Herrington, a partner at Plante & Moran, disclosed in a court filing that he and his firm are "disinterested" as defined in section 101(14) of the Bankruptcy Code. About Olga's Kitchen Olga's Kitchen Inc. is headquartered in Troy, Michigan, and is best known for its Mediterranean-inspired pita wraps, curly fries and quirky offerings, like an orange creme cooler. The Company filed for Chapter 11 bankruptcy protection (Bankr. E.D. Mich. Case No. 15-49008) on June 11, 2015, estimating its assets and liabilities at between $1 million and $10 million each. The petition was signed by Robert Solomon, principal. Judge Walter Shapero presides over the case. Robert N. Bassel, Esq., at Robert Bassel, Attorney, serves as the Company's bankruptcy counsel. OMINTO INC: Needs More Time to File Form 10-Q --------------------------------------------- Ominto, Inc., filed a Form 12b-25 with the Securities and Exchange Commission notifying the delay in the filing of its quarterly report on Form 10-Q for the period ended June 30, 2016. "The process of compiling and processing the information required to be included in the Form 10-Q for the third fiscal quarter ended June 30, 2016 could not be completed without incurring undue hardship and expense. The Registrant expects the Form 10-Q to be filed within the extension period provided under Rule 12b-25 promulgated under the Securities Exchange Act of 1934, as amended," the Company said. The Company's expected results of operations for the quarter ended June 30, 2016, are significantly different than its results for the quarter ended June 30, 2015. Specifically, expected gross margin increased $1.4 million to $3.0 million for the quarter ended June 30, 2016, from $1.7 million for the same quarter in 2015. Additionally, selling, general, and administrative expense has increased to approximately $4.2 million in the 2016 fiscal third quarter from approximately $3.0 million in the 2015 fiscal third quarter. The improved gross margin offset the increase in selling, general, and administrative expense resulting in losses from continuing operations that were consistent with the same quarter in the prior year. Expected losses from continuing operations decreased to approximately $1.2 million in the quarter ended June 30, 2016 from approximately $1.3 million in the quarter ended June 30, 2015. About Ominto Ominto, Inc., was incorporated under the laws of the State of Nevada on June 4, 1999, as Clamshell Enterprises, Inc., which name was changed to MediaNet Group Technologies, Inc. in May 2003, then to DubLi, Inc. on Sept. 25, 2012, and finally to Ominto, Inc. as of July 1, 2015. The DubLi Network was merged into the Company, as its primary business in October 2009. Ominto reported a net loss of $11.7 million for the year ended Sept. 30, 2015, compared to a net loss of $1.34 million for the year ended Sept. 30, 2014. As of March 31, 2016, the Company had $9 million in total assets, $16.8 million in total liabilities and a total stockholders' deficit of $7.83 million. Mayer Hoffman McCann P.C., in Boca Raton, Florida, issued a "going concern" qualification on the consolidated financial statements for the year ended Sept. 30, 2015, noting that the Company has suffered recurring losses from operations and has a net capital deficiency that raise substantial doubt about its ability to continue as a going concern. OMNICOMM SYSTEMS: Reports Financial Results for Q2 2016 ------------------------------------------------------- OmniComm Systems, Inc., announced its financial results for the quarter ended June 30, 2016. Total revenue for the six month period ended June, 2016 was $10.5 million compared to total revenue of $9.7 million for the six month period ended June 30, 2015, an 8% year over year increase. Contracts from new clients as well as repeat or add-on business from existing customers drove the increase. "Our continued financial improvements stem from the hard work across the entire OmniComm team," said Stephen Johnson, OmniComm's chief operating officer and president. "Our success is the result of every employee in every department driving improvements to our products, processes and services to ensure our clients have the most innovative products available to optimize their clinical research." Year to date gross margin improved by $639K or 9% to $7.9 million as compared to $7.3 million for the same period ended June 30, 2015. Gross margin as a percentage of total revenue improved to 76% through June 30, 2016, as compared to 75% through June 30, 2015. Year to date operating expenses decreased by 3% or over $200K to $7.7 million. For the six months ended June 30, 2016 operating income was $206K, an improvement of $861K year over year when compared to an operating loss of $655K for the first half of 2015. "Our year to date financial results demonstrate our continued focus on execution," stated Tom Vickers, OmniComm's CFO. "We are continuing to grow revenue while keeping our costs in line with the revenue growth." A full-text copy of the press release is available for free at: https://is.gd/OLWylK About OmniComm Systems Ft. Lauderdale, Fla.-based OmniComm Systems, Inc., is a healthcare technology company that provides Web-based electronic data capture ("EDC") solutions and related value-added services to pharmaceutical and biotech companies, clinical research organizations, and other clinical trial sponsors principally located in the United States and Europe. OmniComm reported net income attributable to common stockholders of $2.40 million on $20.7 million of total revenues for the year ended Dec. 31, 2015, compared to a net loss attributable to common stockholders of $4.66 million on $16.5 million of total revenues for the year ended Dec. 31, 2014. As of March 31, 2016, Omnicomm had $5.59 million in total assets, $27.89 million in total liabilities and a total shareholders' deficit of $22.29 million. ON QUE FOOD: Seeks to Hire Aristide as Accountant ------------------------------------------------- On Que Food Service Group LLC, d/b/a Jakes Wayback Burgers, seeks authority from the U.S. Bankruptcy Court for the Eastern District of New York to employ Aristide CPA & Business Consultant, PLLC as accountant to the Debtor. On Que Food requires Aristide to: -- prepare monthly reconciliation of the Debtor in Possession Account; -- prepare monthly the financial statements (Balance Sheet and Income Statement) -- prepare monthly the U.S. Bankruptcy Court small business monthly operating report. Aristide will be paid these monthly rates: -- prepare monthly reconciliation $250 of the Debtor in Possession Account; -- prepare monthly the financial $250 statements (Balance Sheet and Income Statement) -- prepare monthly the U.S. Bankruptcy Court $350 small business monthly operating report. Aristide will be paid a retainer fee in the amount of $1,000. Aristide will also be reimbursed for reasonable out-of-pocket expenses incurred. Sherwood Aristide, member of Aristide CPA & Business Consultant, PLLC, 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. Aristide can be reached at: Sherwood Aristide ARISTIDE CPA & BUSINESS CONSULTANT, PLLC 1251 E 80th St Brooklyn, NY 11236 Tel: (347) 713-8477 Fax: (347) 534-3306 E-mail: sherwood@aristidecpa.com About On Que Food On Que Food Service LLC, a Jakes Wayback Burgers franchisee, filed a chapter 11 petition (Bankr. E.D.N.Y. Case No. 16-41930) on May 3, 2016, estimating its assets and debts at less than $1 million. Nigel E. Blackman, Esq., at Blackman & Melville, PC, in Lawrenceville, Ga., represents the Debtor. PALADIN ENERGY: Can Access Cash Collateral Through Nov. 1 --------------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of Texas authorized Paladin Energy Corp. to use Cash Collateral through November 1, 2016 in strict accordance with its Budget. The Court also ordered the Debtor to pay the first $50,000 adequate protection payment, for the month of August, upon entry of the Order, and make subsequent payments on the first day of September 2016 and October 2016. The Court further ordered that if the Debtor does not file a plan of reorganization and accompanying disclosure statement by September 30, 2016, and/or if such plan is not confirmed by December 31, 2016, the Debtor is required to file a motion to appoint a broker, file a motion to approve bid and sale procedures and to sell all or substantially all of its assets by September 30, 2016. The Debtor was directed to maintain a minimum balance in its operating account of $350,000 during the term of the Final Budget as adequate protection to Sheridan Holding Company II, LLC and Redmon Oil Company. As previously reported by the Troubled Company Reporter, the Debtor sought authority from the Court to use Cash Collateral because the Estate has a need for immediate and continuing usage of Cash Collateral to prevent immediate, irreparable, and substantial injury. The Debtor requested the Court for final authorization to use Cash Collateral through December 31, 2016 subject to any further extension thereof by agreement or by future order of the Court. A full-text copy of the Final Cash Collateral Order dated August 11, 2016 is available at http://tinyurl.com/hcdg566 About Paladin Energy Paladin Energy Corp. sought chapter 11 protection (Bankr. N.D. Tex. Case No. 16-31590) on Apr. 21, 2016. The Debtor is represented by Davor Rukavina, Esq., at Munsch, Hardt, Kopf & Harr, P.C., in Dallas, Tex. The Debtor estimated assets ranging from $10 million to $50 million and estimated debts ranging from $10 million to $50 million. PANGAEA NETWORKS: $300K Sale of Assets to Cleareon Approved ----------------------------------------------------------- Judge Stacey L. Meisel of the U.S. Bankruptcy Court for the District of New Jersey authorized Pangaea Networks, Inc., to sell certain of its assets to Cleareon Fiber Networks for $300,000. A hearing was held on Aug, 9, 2016 at 11:00 a.m. The sale is free and clear of all liens, claims, interests and encumbrances. Until further order of the Court determining the extent of any allowed secured claims encumbering the purchased assets, upon closing of the sale Debtor's counsel will hold in trust for the benefit of the estate the following amounts: a. A reserve of $50,000 on account of the secured claim held by Verizon Credit, Inc. b. A reserve of $77,000 on account of the secured claim held by IBM Corp. The net proceeds of sale that are not placed in escrow, or that are placed in escrow but exceed the allowed secured claims, will not be disbursed absent further order of the court. The Debtor is authorized to amend (with respect to ExteNet Systems, Inc.), assume and assign the Assumed and Assigned Contracts to the purchaser in accordance with Section 365 of the Bankruptcy Code and the terms and conditions of the Agreement, as it may be modified, amended and restated hereafter. The Debtor is authorized and directed to pay the cure amounts as set forth in Exhibit C to the Agreement at closing. At closing purchaser will pay to Hibernia Atlantic U.S. LLC a three month security deposit. Pursuant to 11 U.S.C. Section 365 and Bankruptcy Rules 6006 and 9014, except as otherwise stated in the Agreement and annexed exhibits, the assumption and assignment of the Assumed and Assigned Contracts, along with all related amendments and supplement thereto, are authorized and approved. According to the Order, the Assumed and Assigned Contracts comply with every element of Sec. 365 of the Bankruptcy Code and it enables the estate to recover $300,000, much of which will be allocated to pay secured claims and cure amounts for unsecured creditors under the Assumed and Assigned Contracts. Asset Purchase Agreement In order to move the Chapter 11 case forward, the Debtor sought authority to conduct the sale of certain assets of the Business pursuant to an Asset Purchase Agreement with Cleareon Fiber Networks. The pertinent terms of the Purchase Agreement are: * Cleareon agrees to purchase from the Debtor all right, title and interest, including trademark and intellectual property rights, of the Debtor in and to certain assets owned by the Debtor, whether real or personal, except the excluded assets. * The purchase price will be $300,000, subject to higher and better offers. * If the Debtor ultimately accepts an offer and better than the purchase price of Cleareon, then, in that event, Cleareon will be permitted to request a break-up fee in the sum of $9,000 as administrative expense. * Cleareon will enter into employment arrangements with the Debtor's principals Kevin Rocks, Kevin Black, and Matthew O'Leary. Counsel for Pangaea Networks: David Stevens, Esq. SCURA, WIGFIELD, HEYER &STEVENS, LLP 1599 Hamburg Turnpike Wayne, New Jersey 07470 Telephone: (973) 696-8391 E-mail: dstevens@scuramealey.com The Purchaser can be reached at: CLEAREON FIBER NETWORKS, LLC 405 Lexington Avenue, 26th Floor New York, NY 10174 Attn: Michael Collado, Co-CEO Tel: (917) 677-9754 E-mail: mcollado@cleareon.com - and - CLEAREON FIBER NETWORKS LLC 405 Lexington Avenue, 26th Floor New York, NY 10174 Tel: (917) 677-9754 E-mail: Ckane@cleareon.com Purchaser's attorney: Edward B. Stevenson, Esq. CHIESA SHAHINIAN & GIANTOMASI PC One Boland Drive West Orange, NJ 07052 Tel: (973) 530-2173 E-mail: estevenson@csglaw.com About Pangaea Networks Pangaea Networks, Inc., is an independent provider of Metro Ethernet Local Loop connectivity in New York City and the Tri-State area. Its headquarters are located at 233 Rock Road #313, Glen Rock, New Jersey. Pangaea Networks, Inc., sought the Chapter 11 protection (Bankr. D.N.J. Case No. 15-19951) on May 28, 2015. Judge Vincent F. Papalia is assigned to the case. The petition was signed by Kevin Rocks, CFO. The Debtor estimated assets in the range of $0 to $50,000 and $1 million to $10 million in debt. David L. Stevens, Esq. at Scura, Wigfield, Heyer & Stevens, LLP serves as the Debtor's counsel. PENN VIRGINIA: Milkbank Advises Noteholders in Reorganization ------------------------------------------------------------- Milbank, Tweed, Hadley & McCloy LLP advised the Ad Hoc Committee of Noteholders of independent energy producer Penn Virginia Corp., whose Chapter 11 reorganization plan was approved by a U.S. Bankruptcy Court judge on August 11, 2016. As a result of the reorganization, Penn Virginia, one of the largest oil and natural gas drillers in Texas' Eagle Ford Shale, will be owned by the Company's noteholders and unsecured creditors. Penn Virginia entered Chapter 11 this past May with a pre-negotiated plan of reorganization supported by revolving credit lenders and almost all of its noteholders. The Company subsequently reached agreements with equity security holders and pipeline contractor Republic Midstream. The chapter 11 cases were some of the fastest in the oil and gas sector to date, reaching confirmation of the plan of reorganization in 3 months from the petition date. The entirely consensual plan avoided potential litigation with various contract parties and an ad hoc equity committee and involved approval of a hedging program on day one that was a key piece to Noteholder Committee financing. The plan eliminates more than $1 billion of debt, and includes a $50 million rights offering of new equity. Upon the effective date of the plan of reorganization, the noteholders will hold approximately 96% of the equity in reorganized Penn Virginia. The Milbank team was led by Financial Restructuring partners Dennis Dunne and Samuel Khalil. Also advising the Committee were special counsel Brian Kinney and associate Bradley Scott Friedman of the Financial Restructuring Group; Corporate partner Scott Golenbock; Capital Markets partner Paul Denaro and associate Elizabeth McNichol; and Litigation & Arbitration partner Aaron Renenger. About Milbank Milbank, Tweed, Hadley & McCloy LLP is an international law firm that provides legal services to clients around the world. Founded in New York 150 years ago, Milbank has offices in Beijing, Frankfurt, Hong Kong, London, Los Angeles, Munich, São Paulo, Seoul, Singapore, Tokyo and Washington, DC. About Penn Virginia Corporation Based in Radnor, Pennsylvania, Penn Virginia Corporation is an independent oil and gas company engaged in the exploration, development and production of oil, NGLs and natural gas in various domestic onshore regions of the United States, with a primary focus in the Eagle Ford Shale in South Texas. Each of Penn Virginia Corporation, Penn Virginia Holding Corp., Penn Virginia MC Corporation, Penn Virginia MC Energy L.L.C., Penn Virginia MC Operating Company L.L.C., Penn Virginia Oil & Gas Corporation, Penn Virginia Oil & Gas GP LLC, Penn Virginia Oil & Gas LP LLC and Penn Virginia Oil & Gas, L.P. filed a voluntary petition under Chapter 11 of the Bankruptcy Code (Bankr. E.D. Va. Case Nos. 16-32395 to 16-32403, respectively) on May 12, 2016. The petitions were signed by Seth R. Bullock as chief restructuring officer. The Debtors have engaged Kirkland & Ellis LLP as counsel, Kutak Rock LLP as local counsel, Jefferies LLC as investment banker, Alvarez & Marsal North America, LLC as restructuring advisor, KPMG LLP as tax advisor and Epiq Bankruptcy Solutions, LLC as notice, claims and balloting agent. PJT Partners is acting as financial advisor and Milbank, Tweed, Hadley & McCloy LLP is acting as legal advisor to the ad hoc committee of noteholders. Opportune LLP is acting as financial advisor and Bracewell LLP is acting as legal advisor to Wells Fargo (as agent) and the RBL lenders. Judge Keith L. Phillips has been assigned the cases. PHYSICAL PROPERTY: Recurring Losses Raise Going Concern Doubt ------------------------------------------------------------- Physical Property Holdings Inc. filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss and comprehensive loss of $177,000 on HK$260,000 of total operating revenues for the three months ended June 30,2016, compared with a net loss and comprehensive loss of HK$216,000 on HK$234,000 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 and comprehensive loss of HK$344,000 on HK$554,000 of total operating revenues compared to a net loss and comprehensive loss of HK$370,000 on HK$522,000 of total operating revenues for the six months ended June 30, 2015. As of June 30, 2016, the Company had HK$8.93 million in total assets, HK$12.40 million in total liabilities, all current, and a HK$3.46 million total stockholders' deficit. The Company has financed its operations primarily through advances from Ngai Keung Luk, chairman, chief executive officer and the principal stockholder. Cash and cash equivalent balances as of June 30, 2016, and Dec. 31, 2015 were HK$17,000 (US$2,000) and HK$102,000, respectively. Net cash used in operating activities was HK$306,000 (US$39,000) and HK$314,000 for the six-month periods ended June 30, 2016 and 2015, respectively. Net cash used in investing activities which mainly includes increase in bank deposit, were HK$1,000 and NIL for the six-month periods ended June 30, 2016 and 2015, respectively. Net cash provided by financing activities, which mainly includes repayment of bank loans and advances from the Principal Stockholder, were HK$222,000 (US$28,000) and HK$273,000 during the six-month periods ended June 30, 2016 and 2015, respectively. During the six-month periods ended June 30, 2016 and 2015, the Company has not entered into any transactions using derivative financial instruments or derivative commodity instruments or held any marketable equity securities of publicly traded companies. Consistent with the general practice of lessors of residential apartments, the Company receives monthly rentals, which are due on the first day of each billing period and are non-refundable. This practice creates working capital that the Company generally utilizes for working capital purposes. The Company has no trade receivable balance as of June 30, 2016 and Dec. 31, 2015. The Company obtains rental deposits from its tenants and has never experienced any significant problems with collection of accounts receivable. No provision for doubtful receivables is therefore made for the period under review. During the six-month periods ended June 30, 2016 and 2015, the Company had no purchases of investments. Management believes that cash flow generated from the operations of the Company, the tight cost and cash flow control measures and the existing cash and bank balances on hand should be sufficient to satisfy the working capital requirement of the Company for at least the next 12 months as the Principal Stockholder has confirmed his intention to make available adequate funds to the Company as and when required to maintain the Company as a going concern. However, there can be no assurance that the financing from him will be continued. The Company had negative working capital of HK$12,349,000 as of June 30, 2016 and incurred losses of HK$344,000 and HK$370,000 for the six months ended June 30, 2016 and 2015 respectively. These conditions raised substantial doubt about the Company’s ability to continue as a going concern. The Company's quarterly report on Form 10-Q is available from the SEC website at https://is.gd/IzkyZZ About Physical Property Physical Property Holdings Inc. (PPYH.PK) is a Hong Kong-based real estate company. The company buys, sells, invests in and rents real estate in Hong Kong with five residential apartments in the area. Physical Property reported a net loss of HK$795,000 on HK$1.07 million of rental revenue for the year ended Dec. 31, 2015, compared to a net loss of HK$820,000 on HK$1.05 million of rental revenue for the year ended Dec. 31, 2014. The Company's auditors, Mazars CPA Limited, in Hong Kong, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2015, stating that the Company had a negative working capital as of December 31, 2015 and incurred losses for the year then ended, which raised substantial doubt about its ability to continue as a going concern. PICO HOLDINGS: Bloggers Criticize Slow Pace of Change ----------------------------------------------------- PICO Holdings, Inc. (Nasdaq:PICO), based in La Jolla, Calif., is a diversified holding company reporting recurring losses since 2008. PICO owns 57% of UCP, Inc. (NYSE:UCP), 100% of Vidler Water Company, Inc., a securities portfolio and various interests in small businesses. PICO has $662 million in assets and $426 million in shareholder equity. Central Square Management LLC and River Road Asset Management LLC collectively own more than 14% of PICO. Other activists at http://ReformPICONow.com/have taken to the Internet to advance the shareholder cause. The activist bloggers are displeased with the slow pace of change at PICO. They note that, "In late 2015, American International Group became the target of activist investors. On February 11, 2016, those investors reached an agreement with AIG, whereby two activist nominees got seats on AIG's Board. Those nominees were made Directors in May 2016. AIG has a total of 16 Directors. On August 15, 2016, AIG announced that it would sell United Guaranty, its mortgage insurance unit, for $3.4 billion to Arch Capital Group. On November 17, 2015, PICO filed its 'Revision to Business Plan.' Five new Directors came on the PICO Board between December 2015 and March 2016. Raymond Marino was named Chairman on March 23, 2016 -- almost 5 months ago. There are 7 Directors on the PICO Board, 5 are shareholder nominated. How can AIG sell a $3.4 billion mortgage insurer 3 months after 2 of 16 new directors were seated and PICO can't sell a water right, homebuilder, oil & gas speculation, software stake, biotech preferred position or anything else in 5 months after 5 of 7 directors were seated? We admit there are differences between AIG and PICO. First, AIG has a competent CEO who wants to keep his job. PICO has an incompetent and corrupt CEO who greedily squeezes every possible penny from PICO shareholders. Second, the AIG Board and AIG executives are presumably working together. Due to the corrupt machinations of Carlos "The NACD-Decorated Horse Thief" Campbell and Michael "Desperado" Machado, PICO executives are incentivized to work only in their self-interest and sell assets above book value. Last, the AIG Board means business; we assume it would fire the CEO if performance targets were not met. Contrarily, the PICO Board is unwilling to fire Juicer for cause." The bloggers believe that the new PICO Board is reactive but not proactive. "Thus far, this PICO Board has done nothing except react to shareholder-inspired change. Left undone are the PICOGate investigation, Board declassification, UCP Director replacement, revelation of the status of UCP Officer Stock Ownership Guidelines, asset sales and return of capital to shareholders. Did we forget anything? The current Directors and the current Chairman have been in place since March. Not one tangible result has been produced from this Board. Is the new PICO mascot a sloth? We have been told that 3 PICO Directors are working diligently for shareholder's interests. But it appears that 4 are not. And on a Board of 7 Directors, our conscientious Directors are overwhelmed. Given the results, or lack thereof, this explanation makes sense to us. It seems to us that the plate in front of the PICO Board keeps getting fuller. It appears that issues keep arising and this Board refuses to resolve them expeditiously. The AIG Board understands that shareholders own the company. And as Kenneth 'The Slug' Slepicka recently learned, shareholders can punish directors who destroy value. In an economic world where time matters, unnecessary delay is destruction of value." PLANET MERCHANT: Voluntary Chapter 11 Case Summary -------------------------------------------------- Debtor: Planet Merchant Processing, Inc. 407 N 117th Street Omaha, NE 68154 Case No.: 16-81243 Chapter 11 Petition Date: August 17, 2016 Court: United States Bankruptcy Court District of Nebraska (Omaha Office) Judge: Hon. Thomas L. Saladino Debtor's Counsel: Sam King, Esq. MCGILL, GOTSDINER, WORKMAN & LEPP, P.C. 11404 West Dodge Road, Suite 500 Omaha, NE 68154 Tel: (402) 492-9200 Fax: (402) 492-9222 E-mail: samking@mgwl.com Estimated Assets: $10 million to $50 million Estimated Debts: $10 million to $50 million The petition was signed by Dennis O'Brien, president. The Debtor has no unsecured creditor. PLASTIC2OIL INC: Delays Form 10-Q Over Staffing Issues ------------------------------------------------------ Plastic2Oil, Inc., was unable to file its quarterly report on Form 10-Q for the period ended June 30, 2016, within the prescribed time period due to staffing limitations. Accordingly, the Company was unable to file such report within the prescribed time period without unreasonable effort or expense. The Company is seeking to file its Quarterly Report within the extension period provided under Rule 12b-25, however, due to the delay in the start of the auditor review, there can be no assurance that the Company will be successful in filing prior to the expiration of the extension period. About Plastic2Oil Plastic2Oil, Inc., formerly JBI Inc., is a North American fuel company that transforms unsorted, unwashed waste plastic into ultra-clean, ultra-low sulphur fuel without the need for refinement. The Company's Plastic2Oil (P2O) is a process designed to provide immediate economic benefit for industry, communities and government organizations with waste plastic recycling challenges. It is also focused on the creation of green employment opportunities and a reduction in the cost of plastic recycling programs for municipalities and business. The Company's fuel products include No. 6 Fuel, No. 2 Fuel (diesel, petroleum distillate), Naphtha, Petcoke (carbon black) and Off-Gases. No. 6 Fuel is heavy fuel used in industrial boilers and ships. No. 2 Fuel is a mid-range fuel known as furnace oil or diesel. Naphtha is a light fuel that is used as a cut feedstock for ethanol or as white gasoline in high and regular grade road certified fuels. Plastic2Oil reported a net loss of $4.32 million on $16,728 of total sales for the year ended Dec. 31, 2015, compared to a net loss of $6.80 million on $59,017 of total sales for the year ended Dec. 31, 2014. As of March 31, 2016, the Company had $5.27 million in total assets, $10.99 million in total liabilities and a total stockholders' deficit of $5.71 million. D. Brooks and Associates CPA's, P.A., in West Palm Beach, Florida, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2015, citing that the Company has incurred operating losses, has incurred negative cash flows from operations and has a working capital deficit. These and other factors raise substantial doubt about the Company's ability to continue as a going concern. PLASTIC2OIL INC: Sold $100,000 Secured Note to Lawrence Leahy ------------------------------------------------------------- Plastic2Oil, Inc., entered into a subscription agreement with Lawrence Leahy, pursuant to which, on Aug. 10, 2016, the Company sold to the Purchaser in a private placement a $100,000 principal amount 12% Secured Promissory Note due Aug. 10, 2021, together with a five-year warrant to purchase up to 100 hundred thousand shares of the Company's common stock at an exercise price of $0.12 per share. The gross proceeds to the Company were $100,000. In connection with the Note Financing, the Company and the Purchaser entered into certain agreements. Purchase Agreement The Purchase Agreement contains customary representations, warranties and covenants in connection with the sale and issuance of the Notes and Warrants, including without limitation, representations and warranties of the Purchaser as to its "accredited investor" status. 12% Secured Promissory Note The Note issued by the Company bears interest at the rate of 12% per annum. All principal and interest on the Note is due and payable in full by the Company on Aug. 10, 2016, the fifth anniversary of the issuance date. The Note may be prepaid in full or part at any time without penalty. Events of default under the Note include, without limitation, the failure to timely pay principal or interest when due and the commencement of a bankruptcy, liquidation or similar proceeding against the Company. The Company's obligations under the Note are secured by a lien on substantially all of the assets of the Company and Plastic2Oil of NY#1, LLC and JBI RE #1, Inc., each a subsidiary of the Company. Warrants The Warrant issued by the Company has a five year term, is exercisable immediately, and has an initial exercise price of $0.12 per share of common stock were granted to the Purchaser in connection with the shares of common stock issuance upon exercise of the Warrant. Security Agreement In connection with the Note Financing, the Purchaser was a made a party to that certain existing Security Agreement by and among the Company, its subsidiaries, Mr. Heddle, Heddle Marine Service, Inc and Christiana Trust Company, as collateral agent, pursuant to which the Company and subsidiaries granted a security interest in favor of the collateral agent and for the benefit of the holders of the Company's Notes in substantially all of the assets of such grantors. Following an event of default (as defined in the Note), the collateral agent will act with respect to the collateral securing the Notes at the direction of the holders of a majority of the aggregate principal amount of the outstanding Notes. About Plastic2Oil Plastic2Oil, Inc., formerly JBI Inc., is a North American fuel company that transforms unsorted, unwashed waste plastic into ultra-clean, ultra-low sulphur fuel without the need for refinement. The Company's Plastic2Oil (P2O) is a process designed to provide immediate economic benefit for industry, communities and government organizations with waste plastic recycling challenges. It is also focused on the creation of green employment opportunities and a reduction in the cost of plastic recycling programs for municipalities and business. The Company's fuel products include No. 6 Fuel, No. 2 Fuel (diesel, petroleum distillate), Naphtha, Petcoke (carbon black) and Off-Gases. No. 6 Fuel is heavy fuel used in industrial boilers and ships. No. 2 Fuel is a mid-range fuel known as furnace oil or diesel. Naphtha is a light fuel that is used as a cut feedstock for ethanol or as white gasoline in high and regular grade road certified fuels. Plastic2Oil reported a net loss of $4.32 million on $16,728 of total sales for the year ended Dec. 31, 2015, compared to a net loss of $6.80 million on $59,017 of total sales for the year ended Dec. 31, 2014. As of March 31, 2016, the Company had $5.27 million in total assets, $10.99 million in total liabilities and a total stockholders' deficit of $5.71 million. D. Brooks and Associates CPA's, P.A., in West Palm Beach, Florida, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2015, citing that the Company has incurred operating losses, has incurred negative cash flows from operations and has a working capital deficit. These and other factors raise substantial doubt about the Company's ability to continue as a going concern. PRESIDENTIAL REALTY: Incurs $163,000 Net Loss in Second Quarter --------------------------------------------------------------- Presidential Realty Corporation filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $162,908 on $254,164 of revenues for the three months ended June 30, 2016, compared to a net loss of $140,193 on $240,561 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 $332,917 on $504,570 of total revenues compared to a net loss of $299,093 on $471,703 of total revenues for the same period last year. As of June 30, 2016, Presidential Realty had $1.08 million in total assets, $2.43 million in total liabilities and a total stockholders' deficit of $1.34 million. "We obtain funds for working capital and investment from our available cash. "For the six months ended June 30, 2016, the Company had a loss from operations. This combined with a history of operating losses and working capital deficiency, has been detrimental to our operations and could potentially affect our ability to meet our obligations and continue as a going concern. Our ability to continue as a going concern is dependent upon the successful execution of strategies to achieve profitability, and increase working capital by raising debt and/or equity. The accompanying financial statements do not include any adjustments that may result from this uncertainty. "At June 30, 2016, we had $301,056 in available cash, a decrease of $141,866 from $442,922 available at December 31, 2015. This decrease in cash and cash equivalents was due to cash used in operating activities of $76,075, cash used in investing activities of $51,114 and cash used in financing activities of $14,677." The Company's quarterly report on Form 10-Q is available from the SEC website at https://is.gd/tu0yLy About Presidential Realty Headquartered in White Plains, New York, Presidential Realty Corporation, a real estate investment trust, is engaged principally in the ownership of income-producing real estate and in the holding of notes and mortgages secured by real estate or interests in real estate. On Jan. 20, 2011, Presidential stockholders approved a plan of liquidation, which provides for the sale of all of the Company's assets over time and the distribution of the net proceeds of sale to the stockholders after satisfaction of the Company's liabilities. Presidential Realty reported a net loss of $495,377 on $932,044 of total revenues for the year ended Dec. 31, 2015, compared to a net loss of $941,050 on $871,499 of total revenues for the year ended Dec. 31, 2014. Baker Tilly Virchow Krause, LLP, in Melville, New York, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2015, citing that the Company has suffered recurring losses from operations and has a working capital deficiency. These factors raise substantial doubt about its ability to continue as a going concern. PRESSURE BIOSCIENCES: Posts $963K Net Income for June 30 Quarter ---------------------------------------------------------------- Pressure Biosciences, Inc., filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing net income of $962,829 on $510,963 of total revenue for the three months ended June 30, 2016, compared to a net loss of $1.38 million on $413,104 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 $4.98 million on $1.02 million of total revenue compared to a net loss of $2.77 million on $853,238 of total revenue for the same period last year. As of June 30, 2016, Pressure Biosciences had $1.82 million in total assets, $14.26 million in total liabilities and a stockholders' deficit of $12.43 million. "We have experienced negative cash flows from operations with respect to our pressure cycling technology business since our inception. As of June 30, 2016, we did not have adequate working capital resources to satisfy our current liabilities and as a result, we have substantial doubt regarding our ability to continue as a going concern. We have been successful in raising cash through debt and equity offerings in the past and as described in Note 6 to our unaudited consolidated financial statements for the three and six months ended June 30, 2016, we completed an over-subscribed $5 million debt financing on March 21, 2016, raising a total of $6.3 million between July 2015 and March 2016. We have efforts in place to continue to raise cash through debt and equity offerings. "We will need substantial additional capital to fund our operations in future periods. In the event that we are unable to obtain financing on acceptable terms, or at all, we will likely be required to cease our operations, pursue a plan to sell our operating assets, or otherwise modify our business strategy, which could materially harm our future business prospects," the Company stated in the report. The Company's quarterly report on Form 10-Q is available from the SEC website at https://is.gd/vDKMnG About Pressure Biosciences Pressure BioSciences, Inc., headquartered in South Easton, Massachusetts, holds 14 United States and 10 foreign patents covering multiple applications of pressure cycling technology in the life sciences field. Pressure Biosciences reported a net loss applicable to common shareholders of $6.25 million on $1.37 million of revenue for the year ended Dec. 31, 2014, compared to a net loss applicable to common shareholders of $5.24 million on $1.5 million of total revenue for the year ended Dec. 31, 2013. Marcum LLP, in Boston, Massachusetts, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2014, noting that the Company has had recurring net losses and continues to experience negative cash flows from operations. These conditions raise substantial doubt about the Company's ability to continue as a going concern, the auditors said. PROSOLUTIONS LLC: Trustee Taps Guttilla Murphy as Legal Counsel --------------------------------------------------------------- The Chapter 11 trustee appointed in the Chapter 11 cases of Prosolutions LLC and Ruben Diaz seeks court approval to hire Guttilla Murphy Anderson, P.C. In a filing with the U.S. Bankruptcy Court for the District of Arizona, Dina Anderson proposes to hire the firm to provide these services: (a) giving the trustee legal advice with respect to her powers and duties; (b) representing the trustee in negotiations involving the Debtors and their secured and unsecured creditors; (c) preparing legal papers necessary to locate and obtain the Debtors' assets; and (d) performing all legal services the trustee requires in order to carry out her duties. The firm's professionals and their hourly rates are: Partners and Of Counsel $360 Senior Associates $310 Associates $285 Law Clerks $150 Paralegals $110 - $175 Legal Assistants $110 - $175 Dawn Maguire, Esq., at Guttilla Murphy, disclosed in a court filing that the firm is "disinterested" as defined in section 101(14) of the Bankruptcy Code. The firm can be reached through: Dawn M. Maguire, Esq. Guttilla Murphy Anderson, P.C. 5415 E. High St., Suite 200 Phoenix, AZ 85054 Phone: (480) 304-8300 Fax: (480) 304-8301 Email: dmaguire@gamlaw.com About Prosolutions Prosolutions LLC and Ruben Diaz sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D. Ariz. Case Nos. 16-08653 and 16-08654) on July 28, 2016. The cases are jointly administered. QTS REALTY: S&P Raises CCR to BB-, Off CreditWatch -------------------------------------------------- S&P Global Ratings said it raised its corporate credit rating on Overland Park, Kan.-based QTS Realty Trust Inc. to 'BB-' from 'B+'. The outlook is stable. At the same time, S&P raised its issue-level rating on the company's unsecured credit facility and senior unsecured notes to 'BB' from 'BB-'. The recovery rating remains '2', indicating S&P's expectation for substantial (70%-90%; upper half of the range) recovery for lenders in the event of a payment default. S&P removed all ratings from CreditWatch, where it had placed them with positive implications on July 25, 2016. "The ratings upgrade reflects our increased confidence in the cash flow stability of the business, supported by the company's low revenue churn, multi-year contracts, and strong demand for data center services," said S&P Global Ratings credit analyst Rose Askinazi. QTS's custom data center platform (its "C1" segment) has contracts that are more akin to wholesale leases, with contract lengths of five to 10 years and annual price escalators of around 3%. C1 customers tend to have sizable space requirements, where the median customer occupies approximately 3,900 square feet, supporting high utilization rates for the company, between 87%-91% in recent quarters. This segment represents 39% of monthly recurring revenue and helps drive the company's relatively low churn rate, at 1.3% in the second quarter of 2016. The stable outlook reflects S&P's expectation that the company will have adequate liquidity to fund growth initiatives and negative discretionary cash flow through at least the end of 2017, as it continues to invest in additional data center capacity. While unlikely over the next 12 months, S&P could lower the rating if operating performance weakens due to competitive pressure or overexpansion, causing pricing pressure or a decline in utilization that result in margin compression and FFO to debt declining below 10%. While unlikely over the next 12 months, S&P could raise the rating if FFO to debt increases to the high-teens percent area or if leverage improves below 5x on a sustained basis. Any upgrade would require S&P's confidence that the company would fund future expansion, both organic and inorganic, in a leverage neutral manner. Alternatively, S&P could raise the rating over the longer term if the company continues to successfully increase its scale and improve geographic and customer diversity while managing churn and utilization near current levels. QUANTUM MATERIALS: Continues Work for Joint Development Partner --------------------------------------------------------------- Quantum Materials Corp. is continuing to work with a leading optical film manufacturer, building upon a relationship which originated under an initial joint development agreement. Over past year as this development work has ramped up and other projects have come on line, Quantum Materials Corp has tripled its full-time science and engineering staff with the addition of several patent-holding scientists, and engineering, and manufacturing operations specialists. In addition, effective Sept. 1, 2016, the Company will double its lab space at Quantum Materials' San Marcos, Texas headquarters. "Our collaboration continues to evolve as we work closely together to create optimal quantum dots characterizations for display optical films," said Sri Peruvemba, CEO of Quantum Materials Corp. "As we grow our people are the key to our success. We are fortunate in attracting the best material sciences talent with which to drive the commercialization of quantum dot technologies for the display, lighting and energy industries." About Quantum Materials Quantum Materials Corp. and its wholly owned subsidiary, Solterra Renewable Technologies, Inc. (collectively referred to as the company) are headquartered in San Marcos, Texas. The company specializes in the design, development, production and supply of quantum dots, including tetrapod quantum dots, a high performance variant of quantum dots, and highly uniform nanoparticles, using its patented automated continuous flow production process. As of March 31, 2016, Quantum had $1.06 million in total assets, $1.48 million in total liabilities, and a total stockholders' deficit of $419,000. Weaver and Tidwell, L.L.P., in an Oct. 13, 2015 report expressed substantial doubt about the company's ability to continue as a going concern. The firm audited the consolidated balance sheets of the company as of June 30, 2015 and 2014, and the related consolidated statements of operations, stockholders' equity (deficit), and cash flows for each of the years in the two-year period ended June 30, 2015. The independent auditor noted that the Company has suffered recurring losses from operations and has an accumulated deficit that raises substantial doubt about its ability to continue as a going concern. QUEST SOLUTION: Needs More Time to File June 30 Form 10-Q --------------------------------------------------------- Quest Solution, Inc., notified the Securities and Exchange Commission that it requires additional time to complete the accounting and reporting for certain activities and disclosures, and could not finalize its quarterly report on Form 10-Q for the period ended June 30, 2016, in sufficient time to permit its filing within the prescribed time period without unreasonable expense and effort. The delay in processing is a result of the Company requiring additional time in order to prepare accurate and complete financial statements resulting from complex transactions, including (1) restructurings related to the resignation of its executive vice-president of strategy and acquisitions and vice-president of finance, (2) the previously announced debt forgiveness and conversion of debt to shares of Series C Preferred Stock, (3) implementation of the Company's cost reduction plan, and (4) integration of the Company's acquisition of ViascanQData, a Canadian corporation, on Nov. 6, 2015. The delay in processing is also the result of the time needed to calculate the goodwill impairment charge and restructuring expense. The Company is working expeditiously to complete the Quarterly Report and expects that the Quarterly Report will be filed no later than the fifth calendar day following the prescribed due date. The Company expects that the current year quarter results will include a one-time estimated $3.0 million of expenses and charges related to goodwill impairment from the conversion of certain debt and a restructuring expense. The Company has not yet finalized its financial statements for the period ended June 30, 2016. Therefore, the Company is unable to quantify all anticipated changes in its results of operations at this time. About Quest Solution Quest Solution (formerly known as Amerigo Energy, Inc.) is a national mobility systems integrator with a focus on design, delivery, deployment and support of fully integrated mobile solutions. The Company takes a consultative approach by offering end to end solutions that include hardware, software, communications and full lifecycle management services. The highly tenured team of professionals simplifies the integration process and delivers proven problem solving solutions backed by numerous customer references. Motorola, Intermec, Honeywell, Panasonic, AirWatch, Wavelink, SOTI and Zebra are major suppliers which Quest Solution uses in its systems. Quest Solution reported a net loss of $1.71 million on $63.9 million of total revenues for the year ended Dec. 31, 2015, compared to net income of $301,649 on $37.3 million of total revenues for the year ended Dec. 31, 2014. As of March 31, 2016, Quest Solution had $53.4 million in total assets, $55.8 million in total liabilities and a total stockholders' deficit of $2.34 million. The Company's auditors RBSM LLP, in Leawood, Kansas, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2015, citing that the Company has a working capital deficiency and significant subordinated debt resulting from acquisitions. These factors raise substantial doubt about the Company's ability to continue as a going concern. RANCHO ARROYO: Selling Arroyo Grande Personal Property ------------------------------------------------------ Ranch Arroyo Grande, LLC, asks the U.S. Bankruptcy Court for the Central District of California to authorize the sale of certain equipment and vehicles ("Bettinelli Sale Property") located on its real property at 455-599 Hi Mountain Road in Arroyo Grande and known as Rancho Arroyo Grande to Bettinelli Vineyards for $40,500; certain equipment and vehicles ("Ruffoni Sale Property") located on the Ranch property to Todd Ruffoni for $13,600; and its remaining property located on the Ranch property to prospective buyers for no less than the minimum selling price, all subject to overbid. A hearing on the Motion is set for Sept. 7, 2016 at 10:00 a.m. On June 17, 2016, the Court granted relief from stay to secured creditor Wells Fargo Bank to proceed with a foreclosure against the Ranch property. On June 24, 2016, Wells Fargo Bank recorded a Notice of Default against the Ranch property and has indicated that a Trustee's sale date may be set as soon as Oct. 22, 2016. The Debtor owns certain personal property located on the Ranch property that must be liquidated prior to the foreclosure by Wells Fargo. On Aug. 11, 2016, the Debtor received an offer from Bettinelli Vineyards to purchase Bettinelli Sale Property. The Debtor does not believe that the Bettinelli Sale Property, Ruffoni Sale Property and remaining property are encumbered by any liens and no commissions or fee is being paid to any party in connection with the sale of the Bettinelli Sale Property, Ruffoni Sale Property and remaining property. The first minimum overbid for the Bettinelli Sale Property will be $41,000, with subsequent overbid intervals as fixed by court. The first minimum overbid for the Ruffoni Sale Property will be $14,000, with subsequent overbid intervals as fixed by court. The Debtor will seek potential purchasers for the remaining property to bid at the hearing on the Motion. A copy of the Bettinelli Sale Property and Ruffoni Sale Property to be sold, together with the terms and conditions of the sale, and the minimum selling price of the remaining property to be sold, attached to the Motion is available for free at: http://bankrupt.com/misc/Rancho_Arroyo_Grande_151_Sales.pdf About Rancho Arroyo Grande Rancho Arroyo Grande LLC sought protection under Chapter 11 of the Bankruptcy Code (Bankr. C.D. Cal. Case No. 15-12171) on Oct. 30, 2015. The petition was signed by Christopher J. Conway, managing member. The case is assigned to Judge Peter Carroll. The Debtor is represented by Karen L. Grant, Esq., at The Law Offices of Karen L. Grant. At the time of the filing, the Debtor disclosed $18.3 million in assets and $14.6 million in liabilities. RECYCLING INC: Proposes to Hire Jonathan Klein as Special Counsel ----------------------------------------------------------------- Recycling, Inc. seeks approval from the U.S. Bankruptcy Court for the District of Connecticut to hire Jonathan Klein, Esq., as its special counsel. Mr. Klein will serve as Alter & Pearson, LLC's co-counsel in connection with an appeal to the Connecticut Appellate Court of a final judgment entered in an administrative appeals matter initiated by the Debtor against the State of Connecticut Environmental Protection Commissioner and the City of Milford. Mr. Klein will provide legal services on an hourly rate basis and has agreed to be compensated by Gus Curcio, Sr., the Debtor's president, and not by the Debtor. In a court filing, Mr. Klein disclosed that he is a "disinterested person" as defined in section 101(14) of the Bankruptcy Code. The Debtor is represented by: Douglas S. Skalka, Esq. Neubert, Pepe & Monteith, P.C. 195 Church Street, 13th Floor New Haven, CT 06510 Tel: (203) 821-2000 Fax: 203-821-2009 Email: dskalka@npmlaw.com About Recycling Inc. Recycling, Inc. sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D. Conn. Case No. 16-30110) on January 26, 2016. The petition was signed by Gus Curcio, Sr., president. At the time of the filing, the Debtor estimated its assets and debts at $1 million to $10 million. REO HOLDINGS: Trustee Hires Manier & Herod as Special Counsel ------------------------------------------------------------- Eva M. Lemeh, the Chapter 11 Trustee of REO Holdings, LLC, seeks authority from the U.S. Bankruptcy Court for the Middle District of Tennessee to employ Manier & Herod, P.C. as special counsel to the Trustee. Ms. Lemeh requires Manier & Herod to: a. assist with the preparing and filing of appropriate pleadings, including without limitation, reports, applications, complaints, answers, motions, orders, plans of reorganization, and disclosure statements; b. represent the Trustee in all litigation aspects of this case, including adversary proceedings and contested matters; in the evaluation, protection, and pursuit of all other assets of the Debtor's estate; in any litigation concerning sale of property and redemption rights; and in rendering real estate advice; and c. negotiate with creditors and parties in interest. Manier & Herod will be paid at these hourly rates: Michael E. Collins $400 Principals $285-$400 Associates $175-$275 Paralegals $80-$130 Manier & Herod will also be reimbursed for reasonable out-of-pocket expenses incurred. Michael E. Collins was employed from August 1993 through June 2000 as an Assistant U.S. Trustee with the Office of the U.S. Trustee before joining Manier & Herod in January 2003. Michael E. Collins, principal and member of Manier & Herod, P.C., 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. Manier & Herod can be reached at: Michael E. Collins, Esq. 150 Fourth Avenue North One Nashville Place, Suite 2200 Nashville, TN 37219 Tel: (615) 244-0030 About REO Holdings REO Holdings, LLC, filed a Chapter 11 bankruptcy petition (Bankr. W.D. Tenn. Case No. 16-10414) on February 29, 2016. The Debtor is represented by Thomas Harold Strawn Jr., Esq. RESPONSE BIOMEDICAL: Recurring Losses Raise Going Concern Doubt --------------------------------------------------------------- Response Biomedical Corp. filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss and comprehensive loss of C$1.32 million on C$1.32 million of total revenue for the three months ended June 30, 2016, compared to a net loss and comprehensive loss of C$2,000 on C$4.26 million of total revenue for the same period in 2015. For the six months ended June 30, 2016, the Company reported a net loss and comprehensive loss of C$2.57 million on C$3.52 million of total revenue compared to a net loss and comprehensive loss of C$1.10 million on C$7.80 million of total revenue for the six months ended June 30, 2015. As of June 30, 2016, Response Biomedical had C$10.7 million in total assets, C$13.1 million in total liabilities and a C$2.37 million total shareholders' deficit. "The Company is striving to meet its ongoing cash needs through continued efforts to improve sales in China and other markets, reduce costs and otherwise conserve cash, and raise additional financing through the private placement... Without additional financing, the Company's current cash may not be sufficient to allow the Company to continue as a going concern beyond the third quarter of 2016. Management believes that additional financing along with a combination of some or all of the various cost reduction, cash conservation, sales and marketing initiatives, and completion of our collaboration with Joinstar, including short term out of the ordinary cash management measures, will be required to meet its anticipated short term cash requirements. Due to the Company's history of losses, recent significant decreases in China product sales, and current major transition of distributors in China, there is substantial doubt over the Company's ability to continue as a going concern as it is dependent on obtaining additional financing and achieving profitable operations, the outcomes of which cannot be predicted at this time. The consolidated financial statements do not include any adjustments to the amounts and classification of assets and liabilities that might be necessary should the Company be unable to continue as a going concern. Such adjustments could be material," the Company stated in the report. The Company's quarterly report on Form 10-Q is available from the SEC website at https://is.gd/jvVuHl About Response Biomedical Based in Vancouver, Canada, Response Biomedical Corporation develops, manufactures and sells diagnostic tests for use with its proprietary RAMP(R) System, a portable fluorescence immunoassay- based diagnostic testing platform. The RAMP(R) technology utilizes a unique method to account for sources of error inherent in conventional lateral flow immunoassay technologies, thereby providing the ability to quickly and accurately detect and quantify an analyte present in a liquid sample. Consequently, an end-user on-site or in a point-of-care setting can rapidly obtain important diagnostic information. Response Biomedical currently has thirteen tests available for clinical and environmental testing applications and the Company has plans to commercialize additional tests. Response Biomedical reported a net loss of C$150,000 on C$15.41 million of total revenue for the year ended Dec. 31, 2015, compared to a net loss of C$2.09 million on C$11.01 million of total revenue for the year ended Dec. 31, 2014. PricewaterhouseCoopers LLP, in Vancouver, Canada, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2015, citing that the company has incurred recurring losses from operations and has an accumulated deficit at Dec. 31, 2015, that raises substantial doubt about its ability to continue as a going concern. RESPONSE BIOMEDICAL: Reports Second Quarter 2016 Results -------------------------------------------------------- Response Biomedical Corp. reported financial results for its second quarter and six months ended June 30, 2016. Total revenue for the second quarter of 2016 was $1.3 million and totaled $3.5 million for the first half of 2016, a reduction of 69% and 55% respectively relative to the the comparable periods of 2015. While the Company's sales to its China distributors have suffered during the transition to its new distribution network, its sales in the rest of the world continue to see year over year growth at an average rate of 16%. Sales to the Company's national distributor in China were nominal in the second quarter and down 78% from the comparable six month period in 2015, as this distributor continues to work through their excess inventory. In addition, the Company recently signed a new distribution contract with Shanghai Runda Medical Technology Co., Ltd. who is working to increase our sales within our existing Chinese markets and expand into new territories in China. Gross margin on product sales was 37% for the quarter and 41% for the first half of 2016 compared to 41% and 37% respectively in the comparable periods of 2015. Operating expenses decreased approximately 19% in the quarter and 17% for the first half of 2016 primarily due to reduced payroll and administrative expenses as a result of ongoing cost reduction efforts. GAAP net loss for the first quarter of 2016 was ($1.3 million) or ($0.13) per share and was ($2.6 million) or ($0.26) per share for first half of 2016. Adjusted EBITDA was ($674,000) and ($995,000) for the second quarter and first half of 2016 respectively compared with Adjusted EBITDA of $633,000 and ($22,000) in the comparable periods in 2015. Response also announced that it has filed its definitive Proxy Statement related to the Special Meeting of Shareholders to be held at 11:00 a.m. (Pacific Time) on Sept. 16, 2016, at the Company's head office in Vancouver, B.C. The purpose of the Special Meeting is to approve the previously announced arrangement agreement with 1077801 B.C. Ltd., a company jointly owned by OrbiMed and Runda, which will acquire all of the issued and outstanding common shares of Response for cash consideration of $1.12 per Response Share (except in the case of certain rollover shareholders who will instead receive shares of 1077801 B.C. Ltd. on a 1 for 1 basis) by way of a statutory plan of arrangement under the Business Corporations Act (British Columbia). About Response Biomedical Based in Vancouver, Canada, Response Biomedical Corporation develops, manufactures and sells diagnostic tests for use with its proprietary RAMP(R) System, a portable fluorescence immunoassay- based diagnostic testing platform. The RAMP(R) technology utilizes a unique method to account for sources of error inherent in conventional lateral flow immunoassay technologies, thereby providing the ability to quickly and accurately detect and quantify an analyte present in a liquid sample. Consequently, an end-user on-site or in a point-of-care setting can rapidly obtain important diagnostic information. Response Biomedical currently has thirteen tests available for clinical and environmental testing applications and the Company has plans to commercialize additional tests. Response Biomedical reported a net loss of C$150,000 on C$15.4 million of total revenue for the year ended Dec. 31, 2015, compared to a net loss of C$2.09 million on C$11.01 million of total revenue for the year ended Dec. 31, 2014. As of Dec. 31, 2015, Response had C$11.8 million in total assets, C$12.5 million in total liabilities, and a total shareholders' deficit of C$711,000. PricewaterhouseCoopers LLP, in Vancouver, Canada, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2015, citing that the company has incurred recurring losses from operations and has an accumulated deficit at Dec. 31, 2015, that raises substantial doubt about its ability to continue as a going concern. ROCK INVESTMENT: Case Summary & 20 Largest Unsecured Creditors -------------------------------------------------------------- Debtor: The Rock Investment Group, Inc. aka TRIG 5251 S. Quebec Street, Suite 200 Greenwood Village, CO 80111 Case No.: 16-18110 Chapter 11 Petition Date: August 17, 2016 Court: United States Bankruptcy Court District of Colorado (Denver) Judge: Hon. Thomas B. McNamara Debtor's Counsel: Jeffrey S. Brinen, Esq. KUTNER BRINEN, P.C. 1660 Lincoln St., Ste. 1850 Denver, CO 80264 Tel: 303-832-2400 Email: jsb@kutnerlaw.com Total Assets: $11.59 million Total Debts: $2.91 million The petition was signed by Robert Angerer, president. Debtor's List of 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Noble Energy Attorney Fees $753,937 Wheeler Trigg and Court costs O'Donnell LLP 370 17th St Suite 4500 Denver, CO 80202 The Directional Business Debt $378,064 Drilling Company 213 Riggs Street Conroe, TX 77301 Weatherford US, LP Business Debt $184,092 Hutchison & Steffen LLC Legal Fees $183,825 Lexington Insurance Co General Liability $163,056 Insurance Lexington Insurance Co Liability $129,938 Insurance Liberty Mutual Insurance $127,893 Insurance Legarza Exploration Business Debt $109,771 Black Stone Minerals LP Business Debt $86,152 Mountain West Oil Business Debt $75,095 Field Service & Supplies Inc dba Moutain West Oil Gordon Silver Business Debt $62,215 Patton Boggs, LLC Business Debt $59,300 JD Field Services Inc. Business Debt $46,205 Hijet BIT, LLC Business Debt $44,300 Boart Longyear Co Business Debt $42,116 Terry's Pumpin & Business Debt $40,778 Potties, Inc. Propetro Services, Inc. Business Debt $37,456 All for Mineral LP Business Debt $35,102 Phelps Dodge Business Debt $34,736 Exploration Corp Air Drilling Business Debt $32,055 Associates, Inc. ROYAL CARIBBEAN CRUISES: Moody’s Affirms Ba1 Corp Family Rating ----------------------------------------------------------------- Moody's Investors Service changed the rating outlook of Royal Caribbean Cruises Ltd. to positive from stable. At the same time, Moody's affirmed all existing ratings including the Ba1 Corporate Family Rating, Ba1-PD Probability of Default Rating, Ba1 senior unsecured notes rating, and SGL-2 Speculative Grade Liquidity rating. The change in outlook acknowledges Moody's expectation that RCL's credit metrics will strengthen over the next eighteen months from a combination of earnings growth and debt repayment from mandatory ship debt amortization and debt maturities. It also incorporates Moody's belief that RCL is committed to achieving and maintaining debt to EBITDA at 3.5x and will forego any debt financed share repurchases or dividends until it has reached this level. "The change in Royal Caribbean's rating outlook to positive reflects that we expect Royal Caribbean to focus on repaying debt in 2017 over making share repurchases," stated Maggie Taylor, Senior Vice President at Moody's. The following ratings are affirmed: -- Corporate Family Rating at Ba1 -- Probability of Default Rating at Ba1-PD -- Senior unsecured notes and debentures at Ba1, LGD 4 -- Speculative Grade Liquidity rating at SGL-2 RATINGS RATIONALE RCL's Ba1 Corporate Family Rating reflects its solid market position as the second largest global ocean cruise operator based upon capacity and revenue which acknowledges the strength of its brands. RCL is well diversified by geography, brand, and market segment. The rating also acknowledges that RCL's leverage has temporarily increased to 4.5x as of the twelve months ended June 30, 2016 as a result of the timing of two ship deliveries in the spring of 2016. Moody's anticipates that debt to EBITDA will return to 4.0x by the end of 2016. The rating considers that while industry wide capacity will increase, capacity expansion will remain at a rational level as a result of supply constraint. In addition, Moody's believes that the value proposition of a cruise vacation will support continued penetration of the vacation market by cruise operators. Key credit risks include the highly seasonal and capital intensive nature of cruise companies and the cruise industry's moderate exposure to economic and industry cycles. Ratings could be upgraded if RCL continues to grow operating margins and the company achieves and demonstrates the willingness to sustain in the context of the cyclicality of the cruise industry; debt to EBITDA below 3.75x, retained cash flow to debt around 18%, and EBITA to interest expense over 4.0x. An upgrade also requires RCL's financial policy supporting credit metrics remaining better than these levels. Additionally, an upgrade requires RCL maintain liquidity well in excess of its near term funding needs. Ratings could be pressured if the operating environment deteriorates causing cruise pricing to decline such that debt to EBITDA would be sustained above 5.0x or retained cash flow to net debt declines to 10% or if EBITA to interest expense drops below 2.5x. Royal Caribbean Cruises Ltd. is a global vacation company that operates six brands (including three brands through joint ventures) -- the largest being Royal Caribbean International (RCI) and Celebrity Cruises. The six brands operate a combined 48 cruise ships with an aggregate capacity of over 121,000 berths. Lagging twelve month net revenues are over $6.5 billion. The principal methodology used in these ratings was Business and Consumer Service Industry published in December 2014. RYAN ROTH: Plan Confirmation Hearing Set for Sept. 6 ---------------------------------------------------- Judge Robert D. Martin in Madison, Wisconsin, granted conditional approval of the Disclosure Statement explaining the Chapter 11 Plan of Ryan M. Roth and Stephanie S. Roth. The Court will hold a hearing on Sept. 6, 2016, at 11:30 a.m., at Madison Hearings, Courtroom 350 to consider final approval of the Disclosure Statment and confirmation of the Debtor's Plan. Nonpriority unsecured claims in Class 5 are in the approximate amount of $40,000. All of these allowed claims are impaired in that the claimants will be paid with interest at the rate of 0% amortized over 40 months resulting in these claimants sharing pro rata in monthly distributions of $1,000. The unsecured claim of Jeff Young, in Class 6, is from personal loan(s) to the Debtors in the approximate amount of $25,000. No payments will be received by this claimant. The equity interest of the Debtor, in Class 7, if any, will be retained by the Debtors, same being of nominal or no value to creditors. A copy of the Debtor's Plan is available at: http://bankrupt.com/misc/wiwb3-16-12094-0050.pdf Ryan M. Roth and Stephanie S. Roth filed a Chapter 11 petition (Bankr. W.D. Wis. Case No. 16-12094) on June 10, 2016, represented by: Ryan Anthony Blay, Esq. Kristin J. Sederholm, Esq. Krekeler Strother, S.C. 2901 West Beltline Highway, Suite 301 Madison, WI 53713 Tel: 608-258-8555 Fax: 608-258-8299 E-mail: rblay@ks-lawfirm.com ksederho@ks-lawfirm.com SANDRIDGE ENERGY: Plan Confirmation Hearing to Begin Sept. 6 ------------------------------------------------------------ SandRidge Energy, Inc., filed a Plan of reorganization and a related disclosure statement with the Bankruptcy Court on May 18, 2016. The Plan is subject to approval by the Bankruptcy Court. On July 15, 2016, the Bankruptcy Court approved the Company's disclosure statement with respect to the Plan, and the Company is in the process of soliciting votes with respect to the Plan. The Company intends to seek confirmation of the Plan at a hearing before the Bankruptcy Court, currently scheduled to begin September 6, 2016. If the Plan is confirmed by the Bankruptcy Court, the Debtors would exit Chapter 11 pursuant to the terms of the Plan. Under the Plan, the claims against and interests in the Debtors are organized into classes based, in part, on their respective priorities. The Plan provides that, upon emergency from bankruptcy: -- First Lien Credit Agreement. Claims under the senior credit facility will receive their proportionate share of (a) $35.0 million in cash and (b) participation in the $425.0 million New First Lien Exit Facility. -- Senior Secured Note Claims. The Senior Secured Notes will receive their proportionate share of (a) the New Mandatory Convertible Debt, and (b) 85% of the post-reorganization new common stock in the reorganized Company (the "New Common Stock"), as fully diluted by the New Mandatory Convertible Debt measured through the conversion date, subject to dilution by (i) the Warrants, (ii) a Rights Offering, if any, and (iii) the Employee Incentive Plan. Holders of Senior Secured Notes may also be entitled to participate in the Rights Offering under specified circumstances. -- General Unsecured Claims. The Company's general unsecured claims, including the Unsecured Notes, will receive their proportionate share of (a) $10.0 million in cash, (b) 15% of the New Common Stock, as fully diluted by the New Mandatory Convertible Debt measured through the conversion date, subject to dilution by the Employee Incentive Plan, the Rights Offering, and the Warrants, (c) the Warrants, (d) the cash proceeds of the $35.0 million New Building Note, and (e) the Rights Offering. Holders of general unsecured claims, including the Unsecured Notes, may also be entitled to participate in the Rights Offering under specified circumstances. -- Preferred and Common Stock. The Company's existing 7.0% and 8.5% convertible perpetual preferred stock and common stock will be canceled and released under the Plan without receiving any recovery on account thereof. -- Rights Offering. The Restructuring Support Agreement entitles the Debtors to implement a Rights Offering for up to $150.0 million of the New Common Stock at a valuation of the lesser of (a) $1.215 billion or (b) 90% of the equity value under the Plan. The Consenting Creditors are exclusively entitled to purchase the Rights Offering equity until the earlier of 30 days following approval of a disclosure statement by the Bankruptcy Court, 15 days before the date of the confirmation hearing set forth in the disclosure statement order or 90 days after the Chapter 11 filing. The Plan provides for the following new debt and other instruments: -- New First Lien Exit Facility. The New First Lien Exit Facility will have an initial borrowing base of $425.0 million with no borrowing base redeterminations to occur until October 2018 and semiannual borrowing base redeterminations thereafter. The New First Lien Exit Facility will mature on the earlier of March 31, 2020, or 40 months from the Effective Date, with interest payable quarterly at LIBOR plus 4.75% per annum, subject to a 1.00% LIBOR floor. The New First Lien Exit Facility will be secured by (i) first-priority mortgages on at least 95% of the present value of the proved developed producing reserves and 95% of the present value of all proved reserves included in the most recently delivered reserve report, (ii) a first-priority perfected pledge of capital stock of each credit party and their respective wholly owned subsidiaries and (iii) a first-priority security interest in the cash, cash equivalents, deposit, securities and other similar accounts, and a first-priority perfected security interest in substantially all other tangible (other than the Company's corporate buildings in Oklahoma City) and intangible assets of the credit parties (including but not limited to as-extracted collateral, accounts receivable, inventory, equipment, general intangibles, investment property, intellectual property, real property and the proceeds of the foregoing). The New First Lien Exit Facility is subject to a variety of other terms and conditions including conditions precedent to funding, financial covenants, and various other covenants and representations and warranties. -- New Mandatory Convertible Debt. The New Mandatory Convertible Debt will have a principal amount of $300.0 million. The New Mandatory Convertible Debt will mandatorily convert to 46.5% of the New Common Stock no later than four years after the Effective Date or upon the occurrence of certain specified conversion events. The New Mandatory Convertible Debt is subject to being fully or partially secured by springing liens in the same collateral as the New First Lien Exit Facility only upon the occurrence of certain specified litigation events expected to result in a material adverse effect on the business of the reorganized Company. -- Warrants. The Warrants to purchase up to 12.5% of the New Common Stock will be exercisable at any time, in whole or in part, until their expiration date for a per share price based upon a $1.625 billion aggregate value of the New Common Stock at the trailing 30-day volume-weighted average price. The expiration date for the Warrants will be six years from the Effective Date. -- New Building Note. The New Building Note will have a principal amount of $35.0 million and be secured by first priority mortgages on the Company's headquarters facility and certain other non-oil and gas real property located in downtown Oklahoma City, Oklahoma. Interest will be payable on the New Building Note at 6% per annum for the first year following the Effective Date, 8% per annum for the second year following the Effective Date, and 10% thereafter through maturity. Interest will be payable in kind from the Effective Date through the earlier of Sept. 30, 2020, 46 months from the Effective Date or 90 days after the refinancing or repayment of the New First Lien Exit Facility and thereafter in cash. The New Building Note will mature five years after the Effective Date. Under the Restructuring Support Agreement, certain holders of the Unsecured Notes have committed to purchase the New Building Note. On July 14, 2016, the Company conducted an auction for the New Building Note, which auction yielded a winning bid in the amount of $27.0 million in cash. The Plan contemplates these additional terms, among others: -- Consensual Cash Collateral Use. The Company intends to fund ongoing operations and other cash needs during the Chapter 11 proceedings with cash on hand and cash from operations. Under the RSA, the Consenting Creditors have consented to the use of cash collateral during the Chapter 11 Cases through the effective date of the Plan, subject to certain terms, conditions, and termination events. -- Releases. The Plan provides for releases of specified claims held by the Debtors, the Consenting Creditors, and certain other specified parties against one another and for customary exculpations and injunctions. -- Employee Incentive Plan. The Employee Incentive Plan contemplates the issuance of up to 10% of pro forma ownership interests in the reorganized Company to officers and/or other employees of the reorganized Company. The Employee Incentive Plan will be subject to approval of the board of directors of the reorganized Company. The Debtors have filed with the Bankruptcy Court schedules and statements setting forth, among other things, the assets and liabilities of each of the Debtors, subject to the assumptions filed in connection therewith. These schedules and statements may be subject to further amendment or modification after filing. Certain holders of prepetition claims that are not governmental units were required to file proofs of claim by the deadline for general claims, which was set by the Bankruptcy Court as July 22, 2016. About SandRidge Energy SandRidge Energy, Inc. (OTC PINK: SDOC) -- http://www.sandridgeenergy.com/-- is an oil and natural gas exploration and production company headquartered in Oklahoma City, Oklahoma, with its principal focus on developing high-return, growth-oriented projects in the U.S. Mid-Continent and Niobrara Shale. SandRidge Energy, Inc. and 24 of its subsidiaries each filed a voluntary petition under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Tex. Lead Case No. 16-32488) on May 16, 2016. The petitions were signed by Julian M. Bott as chief financial officer. The Debtors have hired Kirkland & Ellis LLP as general bankruptcy counsel, Zack A. Clement PLLC as local counsel, Houlihan Lokey Capital, Inc. as financial advisor, Alvarez & Marsal Holdings, LLC as restructuring advisor and Prime Clerk LLC as claims and noticing agent. The cases are assigned to Judge David R Jones. The Office of the U.S. Trustee has appointed five creditors of SandRidge Energy, Inc., to serve on the official committee of unsecured creditors. SANDRIDGE ENERGY: Posts $516 Million Net Loss for 2nd Qtr 2016 -------------------------------------------------------------- SandRidge Energy, Inc., filed with the Securities and Exchange Commission a Form 10-Q Report for the quarterly period ended June 30, 2016. SandRidge Energy reported a net loss of $516 million for the three months ended June 30, 2016, from a net loss of $1.59 billion for the same period in 2015. The Company reported a net loss of $829 million for the six months ended June 30, 2016, from a net loss of $2.74 billion for the same period in 2015. The Company said total revenues were $99.4 million for the three months ended June 30, 2016, from $230 million for the same period in 2015. Total revenues were $190 million for the six months ended June 30, 2016, from $445 million for the same period in 2015. As of June 30, 2016, the Company had total assets of $2.24 billion against total liabilities of $4.51 billion and a total stockholders' deficit of $2.27 billion. A copy of the Company's financial report is available at https://is.gd/sU72PG About SandRidge Energy SandRidge Energy, Inc. (OTC PINK: SDOC) -- http://www.sandridgeenergy.com/-- is an oil and natural gas exploration and production company headquartered in Oklahoma City, Oklahoma, with its principal focus on developing high-return, growth-oriented projects in the U.S. Mid-Continent and Niobrara Shale. SandRidge Energy, Inc. and 24 of its subsidiaries each filed a voluntary petition under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Tex. Lead Case No. 16-32488) on May 16, 2016. The petitions were signed by Julian M. Bott as chief financial officer. The Debtors have hired Kirkland & Ellis LLP as general bankruptcy counsel, Zack A. Clement PLLC as local counsel, Houlihan Lokey Capital, Inc. as financial advisor, Alvarez & Marsal Holdings, LLC as restructuring advisor and Prime Clerk LLC as claims and noticing agent. The cases are assigned to Judge David R Jones. The Office of the U.S. Trustee has appointed five creditors of SandRidge Energy, Inc., to serve on the official committee of unsecured creditors. SAWYER WOOD: Disclosure Statement Hearing Set for Sept. 8 --------------------------------------------------------- The U.S. Bankruptcy Court for the District of Oregon will hold a hearing Sept. 8, 2016, to consider and possibly approve the proposed disclosure statement dated July 26, 2016, explaining Sawyer Wood Products, Inc.'s Chapter 11 plan of reorganization. Objections to the proposed disclosure statement must be made in writing, setting forth the specific grounds and details of objection, and must be filed, no less than seven days before the date of the hearing set above, with the Clerk. Copies of any filed objections must be contemporaneously served on the proponent, entities required by Fed. Bankruptcy Rule 3017(a), and these parties (if any): Brett Cowman Chairperson of the Creditors' Committee POB 399, Auburn, WA 98071−0399 The proposed disclosure statement may be examined in the office of the Clerk, or by contacting the proponent: Keith Y. Boyd, Esq. 724 S. Central Avenue, #106 Medford, OR 97501 About Sawyer Wood Sawyer Wood Products, Inc. sought protection under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the District of Oregon (Bankr. D. Ore., Case No. 16-60250) on February 3, 2016. The petition was signed by Peter Newport, president. The Debtor is represented by Keith Y. Boyd, Esq., at The Law Offices of Keith Y. Boyd. The case is assigned to Judge Frank R. Alley III. The Debtor estimated assets of $100,000 to $500,000 and debts of $1 million to $10 million. SCIO DIAMOND: Widens Q2 Net Loss to $1.26 Million ------------------------------------------------- Scio Diamond Technology Corporation filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $1.26 million on $185,061 of net revenue for the three months ended June 30, 2016, compared to a net loss of $877,095 on $172,175 of net revenue for the three months ended June 30, 2015. As of June 30, 2016, Scio Diamond had $9.64 million in total assets, $3.86 million in total liabilities, and $5.77 million in total shareholders' equity. The Company expects that working capital requirements will continue to be funded through a combination of its existing funds, further issuances of securities, and future credit facilities or corporate borrowings. The Company's working capital requirements are expected to increase in line with the growth of its business. As of March 31, 2016, the Company's cash balance was $192,880 and as of June 30, 2016, its cash balance was reduced to $67,898. This reduction was due to the Company's operating cash needs. The Company's cash at June 30, 2016 is not expected to be adequate to fund its operations over the current fiscal year ending March 31, 2017. "We are pleased to report quarterly revenue growth as a result of the Company's increased production capacity and renewed focus on growing near-colorless, white diamond gemstones," said Gerald McGuire, Scio Diamond CEO. After the Company returned to full production in April, following the previously reported December 2015 shutdown, it has experienced strong monthly revenue growth. This growth continued into July and Scio anticipates this trend will continue as production yields improve and overall diamond industry demand increases through the end of the calendar year. Added McGuire, "Over the past two months, we've made significant progress. The carat weight of our diamonds continues to increase, our color and clarity capabilities continue to improve, our customer base is growing, and we are beginning to see the resulting improvements in our financials. While short-term cash requirements continue to challenge our efforts, we are optimistic about the market potential for our lab-grown diamonds, and are encouraged by the increasing demand we are seeing from our customers." Going Concern "The Company has generated little revenue to date and consequently its operations are subject to all risks inherent in the establishment and commercial launch of a new business enterprise. The Company continues to develop its diamond technology while operating its factory to maximize revenue. The Company experienced a process water leak in our facility in mid-December 2015 causing damage to our diamond growers and a temporary interruption in production. The shutdown had a significant negative impact on revenue and delayed attainment of the Company's near-term business objectives. While the Company's insurance carrier provided it with $350,000 during the fiscal year ended March 31, 2016, to cover the cost of the business interruption, the Company anticipates there may be on-going negative impact on its business as it has returned to full production capacity. "These factors raise substantial doubt about the Company's ability to continue as a going concern," the Company stated in the report. The Company's quarterly report on Form 10-Q is available from the SEC website at https://is.gd/r2BXZy About Scio Diamond Scio Diamond Technology Corporation was incorporated under the laws of the State of Nevada as Krossbow Holding Corp. on Sept. 17, 2009. The Company's focus is on man-made diamond technology development and commercialization. Scio Diamond reported a net loss of $3.62 million on $616,758 of revenue for the year ended March 31, 2016, compared to a net loss of $4.14 million on $726,193 of revenue for the year ended March 31, 2015. Cherry Bekaert LLP, in Greenville, South Carolina, issued a "going concern" qualification on the consolidated financial statements for the year ended March 31, 2016, citing that the Company has generated limited revenue, incurred net losses and incurred negative operating cash flows since inception and will require additional financing to fund the continued development of products. The availability of such financing cannot be assured. These conditions raise substantial doubt about its ability to continue as a going concern. SCRANTON-LACKAWANNA: S&P Rates $24.6MM Parking Bonds BB+ -------------------------------------------------------- S&P Global Ratings assigned its 'BB+' rating to the Scranton-Lackawanna Health and Welfare Authority (Scranton Parking System Concession Project), Pa.'s approximately $24.6 million series 2016A senior parking revenue current interest bonds, $2.2 million series 2016B senior parking revenue current interest bonds, and $2.2 million series 2016C senior parking capital appreciation bonds. The outlook is stable. The 2016 bonds have a senior lien and will be paid from net revenues from community development properties, Community Development Properties Scranton (CDPS) Inc., the concessionaire who entered into agreements to operate certain parking and parking meter assets. The assets include four off-street parking garages with 2,001 spaces, 500 parking spaces at the mall garages and approximately 1,479 on-street metered parking spaces in the Scranton central business district. "The rating reflects our view of a parking system that is diverse-but-small, and which will be highly leveraged and require initial revenue enhancements and regular rate increases to address escalating debt service requirements in a service area with below-average wealth levels," said S&P Global Ratings credit analyst Todd Spence. Proceeds from the 2016 bonds will fund the payment for entering the structured parking and metered parking concession agreements, pay for capital improvements, fund the debt service reserve, and pay costs of issuance. S&P believes the parking system benefits from serving central business district in Scranton with major medical facilities, education facilities, government organizations, shopping, and nightlife, which provide a good base of demand for parking. In S&P's opinion, the service area has exhibited adequate population trends and stabilizing employment. From 2000-2015, Scranton's population declined modestly, to 75,615 in 2015 from 76,082 in 2000. The population of Lackawanna County increased modestly, to 213,895 from 212,925. The unemployment rate has declined and is similar to the state average at 4.7% in 2015. Based on U.S. Bureau of Economic Analysis data, the city's labor force declined to 279,100 in 2015 from 305,200 in the year 2000. The stable outlook reflects S&P's expectation that demand and revenue will meet the minimum coverage levels provided in the financial forecast and that officials will maintain all required deposits in the indenture. S&P could raise the rating if net revenues provide DSC higher than forecast and S&P believes the increase is sustainable. If revenues and expenses yield DSC that is below forecast or if the concessionaire incurs additional debt S&P could lower the rating. SENSUS USA: S&P Puts 'B' CCR on CreditWatch Positive ---------------------------------------------------- S&P Global Ratings said that it has placed all of its ratings on Raleigh, N.C.-based Sensus U.S.A. Inc., including S&P's 'B' corporate credit rating, on CreditWatch with positive implications. "Xylem Inc. announced today that it intends to acquire Sensus U.S.A. Inc. for $1.7 billion," said S&P Global credit analyst James Siahaan. "The CreditWatch positive placement reflects the potential that we could upgrade Sensus to equalize our ratings on the company with our ratings on Xylem Inc. before we withdraw them." Sensus is a global manufacturer of smart meters and associated infrastructure that generated $870 million of revenue and $181 million of adjusted EBITDA during the trailing 12 months ended June 30, 2016. S&P intends to resolve the CreditWatch placement on Sensus in the next 90 days after S&P conducts its review. S&P's review will focus on the combined company's expected operating performance, growth strategies, and proposed capital structure, as well as the likelihood that the deal will receive regulatory approval and any other potential impediments that may prevent the completion of the transaction. S&P could potentially equalize its rating on Sensus with those on Xylem because Sensus will likely become a core subsidiary of Xylem given its meaningful contribution to the combined company's sales and operations. When the transaction closes, which S&P expects will occur at the end of 2016, S&P will likely withdraw its ratings on Sensus if its debt has been repaid. SEQUENOM INC: Faces Lawsuit Over Proposed LabCorp Transaction ------------------------------------------------------------- A putative class action lawsuit was filed by a single plaintiff in the United States District Court for the Southern District of California (Case No. 3:16-cv-02054-JAH-BLM) against Sequenom and individual members of Sequenom's Board of Directors on Aug. 15, 2016. The action, styled Todd Malkoff v. Sequenom, Inc., et al., alleges that (i) Sequenom and individual members of Sequenom's Board of Directors violated Sections 14(e) and 14(d)(4) of the Exchange Act and Rule 14D-9 thereunder by failing to disclose material information in Sequenom's Solicitation/Recommendation Statement on Schedule 14D-9, filed with the SEC on Aug. 9, 2016, regarding potential conflicts of interest on the part of the individual directors and (ii) individual members of Sequenom's Board of Directors (a) violated Section 20(a) of the 1934 Act as controlling persons who had the ability to prevent the issuance of the Recommendation Statement or to cause it to not be materially false or misleading and (b) violated the fiduciary duties of care, loyalty, good faith and independence owed to Sequenom and its public stockholders by failing to properly value Sequenom. The plaintiff seeks (i) an order certifying the action as a class action and appointing plaintiff as the class representative and his counsel as class counsel, (ii) a declaration that the Recommendation Statement is materially false or misleading, (iii) an injunction against the acquisition of the Company by Purchaser and LabCorp or, in the alternative, to rescind the sale of the Company and award plaintiff and the class rescissory damages, (iv) an accounting of all profits and any special benefits allegedly improperly received by the defendants in an unspecified amount, (v) an award of the costs of this action, including reasonable fees and expenses of plaintiff's attorneys and experts and (vi) such further relief as the court deems just and proper." 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. SOFINTEK INC: Hires Burger & Comer as Accountant ------------------------------------------------ Sofintek Inc., seeks authority from the U.S. Bankruptcy Court for the District of Guam to employ Burger & Comer P.C. as accountant and financial advisor to the Debtor. Sofintek Inc. requires Burger to: a. serve as coordinator of the financial reporting for the Business for the Debtor and assist the Debtor's bookkeeper on an as-needed basis to facilitate the timely completion of their work; b. prepare, analyze and review the accounting schedules, ledgers and financial statements and financial condition of the Debtor; c. review the Debtor's historical and projected results of operations and operating cash flows before and after expenses; d. review the terms and conditions of the Debtor's existing receivables and indebtedness; e. assist the Debtor with its analysis and design of restructuring plan; f. assist the Debtor with evaluation of strategic alternatives, including a potential sale of some or all of their property; g. assist the Debtor in negotiations with existing creditors or their authorized representatives; and h. provide such other financial advisory services as are appropriate and reasonable in connection with the bankruptcy proceedings, including expert testimony at adequate protection, relief from stay, cash collateral, secured status determination, plan confirmations and other hearings. Burger will be paid at these hourly rates: CPA $120 Managers $80 Staff $40 Burger will also be reimbursed for reasonable out-of-pocket expenses incurred. David Burger, member of Burger & Comer P.C., 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. Burger can be reached at: David Burger BURGER & COMER P.C. P.O. Box 504053 Saipan, MP 96950 Tel: (670) 235-8722 Fax: (670) 235-6905 About Sofintek Inc. Sofintek Inc., d.b.a. Skydrenaline Zone, filed a Chapter 11 bankruptcy petition (Bankr. D. Guam Case No. 1:16-bk-00072) on June 24, 2016. Mark Williams, Esq., at The Law Office of Mark E. Williams, P.C., serves as the Debtor's bankruptcy counsel. SONDIAL PROPERTIES: Proposes to Use Cash Held by CPIF Decatur ------------------------------------------------------------- Sondial Properties, LLC asks the U.S. Bankruptcy Court for the Northern District of Georgia for authorization to use cash collateral currently held by CPIF Decatur Office, LLC. The Debtor tells the Court that CPIF holds a first priority security interest in the Debtor’s real estate and improvements located at 1670 Scott Boulevard, Decatur, Georgia 30033, and that the sole source of Debtor’s income is rental revenue from tenants occupying the Property. The Debtor relates that CPIF has a security interest on the Property for an indebtedness which is currently in the excess of $8.5 million, while the value of the Property "as-is", according to a formal appraisal conducted on April 2016 by a reputable appraisal firm is $12,000,000. The Debtor further relates that it recently received an offer for the purchase of this property in excess of $11,000,000. The Debtor requires the use of cash collateral on an ongoing monthly basis to preserve the value of its Property for the benefit of all creditors and other parties in interest. The Debtor proposes to use cash collateral in the ordinary course, for purposes of carrying on the ordinary use and preservation of the Property. A full-text copy of the Cash Collateral Motion, dated August 9, 2016, is available at https://is.gd/Z6xAvB Counsel for Sondial Properties, LLC: George M. Geeslin, Esq. GEORGE M. GEESLIN Two Midtown Plaza, Ste 1350 1349 West Peachtree Street Atlanta, GA 30309 Phone: (404) 841-3464 Fax: (866) 253-2313 Email: george@gmgeeslinlaw.com About Sondial Properties Sondial Properties, LLC filed a chapter 11 petition (Bankr. N.D. Ga. Case No. 16-63236) on Aug. 1, 2016. The petition was signed by Alphonso Waters, managing member. The Debtor is represented by George M. Geeslin, Esq., at George M. Geeslin. The Debtor estimated assets and liabilities at $10 million to $50 million at the time of the filing. SOUTHERN SEASON: Selling Substantially All Assets to Focus ---------------------------------------------------------- Southern Season, Inc., asks the U.S. Bankruptcy Court for the Middle District of North Carolina to authorize the sale of substantially all assets to The Focus Properties, Inc., subject to overbid. On April 15, 2016, the Debtor, its affiliates, and SummitBridge National Investments IV, LLC entered into a certain Forbearance Agreement pursuant to which, inter alia, the Debtor acknowledged that the total outstanding indebtedness under the Loan Agreement was $4,496,743, consisting of principal of $4,450,000, and accrued interest of $46,743, as of April 1, 2016. SummitBridge asserts a first priority security interest in the Debtor's accounts receivable and inventory, as well as a first priority security interest in the Debtor's equipment, and other tangible and intangible assets. The amount outstanding on the SummitBridge indebtedness as of the Petition Date is approximately $4,450,000. As of the Petition Date, the Debtor had inventory totaling approximately $3,528,693, calculated on a cost basis. Pursuant to the Existing Interim DIP Financing Orders, Silk Route Capital Corp. was granted a lien and security interest in all of the Debtor's assets provided that such liens and security interests do not extend to Avoidance Actions and are subordinated to allowed PACA trust claims, the lien of SummitBridge National Investments, IV, LLC and Permitted Trailing Expenses. Prior to July 26, 2016, Silk Route had advanced $250,000 to the Debtor. On July 26, 2016, after a further hearing on the use of cash collateral and postpetition financing with Silk Route had been conducted, the Debtor sent a draw request to Silk Route, requesting that it advance $400,000 under the Post-Petition Credit Agreement. Pursuant to Section 1.2 of the Post-Petition Credit Agreement, Silk Route was obligated to transfer the proceeds to the Debtor within 3 business days of the draw request. Silk Route disbursed only $122,000 to the Debtor by July 29, 2016. As of the date of the Sale Motion, Silk Route has not disbursed the balance of the outstanding draw request, and the Debtor has determined that Silk Route is either unable or unwilling to disburse the committed funds. On Aug. 4, 2016, the Debtor filed a motion to employ Three Twenty-One Capital Partners, LLC ("321 Capital") as its investment banker, primarily to provide services in connection with marketing and locating the highest and best potential bidders for the Debtor's assets in a going concern sale. On Aug. 10, 2016, the employment of 321 Capital was approved in open Court, but a signed Order has not yet been entered. On Aug. 8, 2016, John Fioretti of ABTV was appointed as the Debtor's Chief Restructuring Officer ("CRO"). The CRO has the full and complete authority to manage the affairs of the Debtor. The CRO is currently evaluating the Debtor's business and affairs in order to determine whether to pursue reorganization, a sale process or alternative outcome for this chapter 11 case. On Aug. 10, 2016, the Court entered an Interim Order Granting Authority to Obtain Post-Petition Financing From SummitBridge National Investments IV, LLC, which authorized the Debtor, on an interim basis, to obtain post-petition financing of up to $500,000 from SummitBridge, secured by a priming lien on substantially all of the Debtor's assets, subject only to allowed PACA trust claims. On Aug. 10, 2016, SummitBridge advanced approximately $282,000 to the Debtor. The Debtor seeks approval of the sale of substantially all of the Debtor's assets to The Focus Properties free and clear of all claims, liens encumbrances and interests, pursuant to the sale procedures. The Debtor proposes this schedule in connection with the sale of the Assets: a. Aug. 15, 2016: Sale Procedures Hearing and entry of Sale Procedures Order b. Aug. 18, 2016: Deadline to submit Initial Bids c. Aug. 19, 2016: Auction and Final Hearing d. Aug. 22, 2016: Deadline for Sale Closing Subject to any final modifications or revisions to the Asset Purchase Agreement prior to the initial hearing on the Motion, the assets to be purchased pursuant to the Sales Procedures ("Sale Assets") consist of all of the Debtor's (i) inventory, equipment, machinery, instruments, vehicles, furniture, fixtures and all other tangible property, (ii) prepaid expenses, credit card processing reserves and security deposits, (iii) accounts receivable, (iv) proprietary information, trade secrets and confidential information, technical information and data, trademarks, trade names, and service marks, including but not limited to the "A Southern Season" name and logo, (v) machinery and equipment warranties and service contracts, (vi) all other documentation related to the operation of the Store, including all licenses and permits necessary to the operation, (vii) all books and records related to the Sale Assets and the operation of the Debtor's stores, including all financial, accounting and property tax records, computer data and programs, market data, and records and all correspondence with and documents pertaining to suppliers, governmental authorities and other third parties, (viii) the Debtor's e-commerce online store and platform, to include http://www.SouthernSeason.com/, the Holiday Season print magazine and telephone call center, and associated goodwill and IP. The Debtor and the Stalking Horse Bidder are in the process of finalizing a certain Asset Purchase Agreement ("Stalking Horse Agreement") which will be finalized and filed as a supplemental document to the motion. Pursuant to the Sale Procedures, any entity other than the Stalking Horse Bidder that is interested in purchasing the Sale Assets will be required to submit a definitive "Asset Purchase Agreement" specifying all terms and conditions of their offer, and bids may not be subject to further due diligence after or conditional upon obtaining financing in order to close the transaction after the auction sale. It is contemplated that the Stalking Horse Agreement will provide that the Debtor will assume and assign to the Stalking Horse Bidder at closing the real property leases with respect to the following premises: (i) the Southern Season Store and Weathervane Restaurant at 201 S. Estes Drive, Chapel Hill, NC 27514, (ii) the "Taste Store" located at 443-B207 Daniels Street, Raleigh, NC 27605, and (iii) the "Taste Store" located at 4 Swan Street, Asheville, NC 28803. It is contemplated that the Stalking Horse Agreement will provide that the seller will pay at closing all cure costs necessary in connection with the assumption and assignment of the assumed leases. No other leases of personal property or real property, nor any other executory contracts, will be assumed by the purchaser or assigned at closing. The Debtor believes the assumed leases cure costs with respect to the Southern Season Store and Weathervane Restaurant at 201 S. Estes Drive, Chapel Hill, NC 27514 will be $51,559, which is the rent payment due Aug. 1, 2016. The Debtor believes the assumed leases cure costs with respect to the "Taste Store" located at 443-B207 Daniels Street, Raleigh, NC 27605, are $12,932, which is the rent payment due Aug. 1, 2016. The Debtor believes the assumed leases cure costs with respect to the "Taste Store" located at 4 Swan Street, Asheville, NC 28803, are $4,666, which is the security deposit due. Rent does not commence under this lease until Oct. 1, 2016. The net sale proceeds from the sale of the Sale Assets shall be allocated as follows: a. Payment of compensation and reimbursement of expenses to 321 Capital. b. Then, payment of $62,000, to be held in the trust account of counsel for the Debtor, to be available for the payment of allowed PACA trust claims, and any remaining un c. Then, payment of the entire amount of SummitBridge's postpetition indebtedness under the Interim Order Granting Authority to Obtain Post-Petition Financing From SummitBridge National Investments IV, LLC. d. Then, an amount equal to actual Permitted Trailing Expenses excluding professional fees not to exceed $500,000, to be held in the trust account of counsel for the Debtor, to be available for the payment of Permitted Trailing Expenses as that term is defined in the existing cash collateral and DIP financing orders of the Court, to be disbursed pursuant to further order(s) of the Court. e. Then, $175,000, to be held in the trust account of counsel for the Debtor, to be available for payment of the professional fees of the Debtor's counsel, the Committee's counsel, and the Debtor's CRO; f. Then, 2% of the remaining sale proceeds after the payment of the items in sub-paragraphs (a) through (e) above, to be placed in the trust account of counsel for the Debtor, which will be carved-out from and not subject to any lien or security interest of SummitBridge, will be preserved for the benefit of the Debtor's bankruptcy estate, and will be disbursed pursuant to further order(s) of the Court. g. Then, all remaining sale proceeds after payment of the items in (a) through (f) above, up to but not to exceed the entire outstanding balance of SummitBridge's prepetition indebtedness. h. Then, any remaining sale proceeds, to be held in the trust account of counsel for the Debtor, which will be disbursed pursuant to further order(s) of the Court. A copy of the Sale Procedures attached to the Motion is available for free at: http://bankrupt.com/misc/Southern_Season_163_Sales.pdf About Southern Season Southern Season, Inc., was founded in 1975 and is a premier retail destination for specialty food and gifts. It currently operates its flagship retail store located in Chapel Hill, North Carolina, and its three "Taste of Southern Season" stores in Asheville, Raleigh, North Carolina and Charleston, South Carolina. Southern Season sought protection under Chapter 11 of the Bankruptcy Code (Bankr. M.D.N.C. Case No. 16-80558) on June 24, 2016. The petition was signed by Clay Hammer, CEO. On Aug. 8, 2016, John Fioretti of ABTV was appointed as the Debtor's Chief Restructuring Officer. The CRO has the full and complete authority to manage the affairs of the Debtor. The Debtor is represented by John Paul H. Cournoyer, Esq., at Northen Blue, LLP, and Richard M. Hutson, II, Esq., at Hutson Law Offices, P.A. The case is assigned to Judge Benjamin A. Kahn. At the time of the filing, the Debtor disclosed $9.82 million in assets and $18.3 million in liabilities. SPECTRASCIENCE INC: Posts $88K Net Loss for 2nd Quarter 2016 ------------------------------------------------------------ SpectraScience Inc. filed with the Securities and Exchange Commission its Form 10-Q report for the quarterly period ended June 30, 2016. SpectraScience posted a net loss of $88,182 for the quarter, from a net loss of $743,261 for the same period a year ago. For the first half of 2016, SpectraScience posted a net loss of $2,144,516 from a net loss of $2,452,951 for the same period in 2015. SpectraScience posted $950 in revenues for the second quarter. It did not post any revenues during the first quarter this year. At June 30, 2016, the Company had $1,656,771 in total assets, total current liabilities of $10,425,813, total mezzanine equity of $30,850 and total shareholders' deficit of $8,799,892. As of June 30, 2016, the Company had a working capital deficit of $10,024,040 and cash of $27,860, compared to a working capital deficit of $8,324,600 and cash of $127,493 as of Dec. 31, 2015. In December 2011, the Company entered into an Engagement Agreement with Laidlaw & Company (UK) Ltd., which Engagement Agreement was amended in July 2012. Under the Engagement Agreement, Laidlaw agreed to assist the Company in raising up to $20.0 million in capital over a two-year period from the date of the Engagement Agreement. Subsequent to March 31, 2013, the Company has engaged other agents to assist the Company with raising capital and has commenced raising capital on its own. During the six months ended June 30, 2016, the Company raised $811,000, net of transaction costs of $24,000, under these agreements. However, if the Company does not receive additional funds in a timely manner, the Company could be in jeopardy as a going concern. The Company may not be able to find alternative capital or raise capital or debt on terms that are acceptable. Management believes that if the events defined in the Engagement Agreements occur as expected, or if the Company is otherwise able to raise a similar level of funds, such proceeds will be sufficient to allow the Company to sustain operations until it attains profitability and positive cash flows from operations. However, the Company may incur unknown expenses or may not be able to meet its revenue expectations requiring it to seek additional capital. In such event, the Company may not be able to find capital or raise capital or debt on terms that are acceptable. The holders of Convertible Debentures control the conversion of the Convertible Debentures and certain of the Convertible Debentures were not converted at their maturity constituting a potential default on the matured, but unconverted, Convertible Debentures. In the event of such default, principal, accrued interest and other related costs are immediately due and payable in cash. As of June 30, 2016, Convertible Debentures with a face value of $4,882,276 held by 79 individual investors are in default. None of these investors have served notice of default on the Convertible Debentures held by them. A copy of the Company's SEC report is available at https://is.gd/QuX5bj SpectraScience, Inc. develops and manufactures innovative Laser Induced Fluorescence spectrophotometry systems capable of determining whether tissue is normal, pre-cancerous or cancerous without removing tissue from the body. The WavSTAT Optical Biopsy System is SpectraScience's first product to incorporate its proprietary fluorescence technology for clinical use. The WavSTAT System carries the CE mark designation which allows for the sale and marketing in the European Union for the diagnosis of cancer. SPENDSMART NETWORKS: Reports Second Quarter 2016 Results -------------------------------------------------------- SpendSmart Networks, Inc., doing business as "SMS Masterminds," reported its financial results for the second quarter and year to date ended June 30, 2016. Revenues for the second quarter of fiscal 2016 were $1.61 million, and grew 12.6% from first quarter of fiscal 2016. Year to date revenues through second quarter of 2016 were $3.04 million. Net loss for the second quarter of 2016 was $135,300 compared to a net loss of $1.29 million for the second quarter of 2015. Stock based compensation costs for the second quarter of 2016 totaled $269,000 while the effects of depreciation, amortization of intangible assets and debt discount, interest, inducement for exercise of warrants, and changes in the Company's derivatives and earn-out liabilities totaled $427,000. Luke Wallace, who assumed the role CEO of SMS Masterminds in April 2016, stated: "We continue to right size the company, reducing expenses while growing the licensee network and expanding technology to assist small and medium size businesses effectively engage and monetize their customer base. We're committed to providing the highest level of support for our licensees and the millions of subscribers in our loyalty network." About SpendSmart Networks SpendSmart Networks provides proprietary loyalty systems and a suite of digital engagement and marketing services that help local merchants build relationships with consumers and drive revenue. These services are implemented and supported by a vast network of certified digital marketing specialists, aka "Certified Masterminds," who drive revenue and consumer relationships for merchants via loyalty programs, mobile marketing and website development. Consumers' dollars go further when they spend it with merchants in the SpendSmart network of merchants, as they receive exclusive deals, earn rewards and ultimately build a connection with their favorite merchants. Spendsmart Networks reported a net loss of $11.9 million on $5.58 million of total revenues for the year ended Dec. 31, 2015, compared to a net loss of $12.2 million on $4.03 million of total revenues for the year ended Dec. 31, 2014. As of March 31, 2016, the Company had $3.31 million in total assets, $7 million in total liabilities and a total stockholders' deficit of $3.68 million. EisnerAmper LLP, in Iselin, New Jersey, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2015, citing that the Company has recurring losses and has yet to establish a profitable operation and at December 31, 2015 has negative working capital and stockholders' deficit. These factors among others raise substantial doubt about its ability to continue as a going concern. SPIRE CORP: Says Two Directors Resigned --------------------------------------- Messrs. David R. Lipinski and Roger W. Redmond resigned from the Board of Directors of Spire Corporation, effective on Aug. 7, 2016, as disclosed in a regulatory filing with the Securities and Exchange Commission. About Spire Corp Bedford, Massachusetts-based Spire Corporation currently develops, manufactures and markets customized turn-key solutions for the solar industry, including individual pieces of manufacturing equipment and full turn-key lines for cell and module production and testing. Spire Corporation reported a net loss of $8.52 million in 2013, as compared with a net loss of $1.85 million in 2012. As of Sept. 30, 2014, the Company had $9.73 million in total assets, $15.60 million in total liabilities and a total stockholders' deficit of $5.87 million. McGladrey LLP, in Boston, Massachusetts, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2013. The independent auditors noted that the Company incurred an operating loss from continuing operations of $8.4 million and cash used in operating activities of continuing operations was $5.2 million. The Company's credit agreement with a bank is due to expire on April 30, 2014. These factors raise substantial doubt about its ability to continue as a going concern. ST. STEPHENSON M.B.: Case Summary & 2 Unsecured Creditors --------------------------------------------------------- Debtor: St. Stephenson M.B. Church 1319- 21 South Ashland Chicago, IL 60608 Case No.: 16-26458 Chapter 11 Petition Date: August 17, 2016 Court: United States Bankruptcy Court Northern District of Illinois (Chicago) Judge: Hon. Pamela S. Hollis Debtor's Counsel: Glenda J. Gray, Esq. LAW OFFICE OF GLENDA J GRAY 223 West Jackson Blvd., Suite 1116 Chicago, IL 60606 Tel: (312) 386-1010 Fax: (312) 386-1020 E-mail: ladylawgray@aol.com Total Assets: $1.60 million Total Liabilities: $61,430 The petition was signed by Clem Ferguson, Sr., president/pastor. A copy of the Debtor's list of two unsecured creditors is available for free at http://bankrupt.com/misc/ilnb16-26458.pdf STAR BODY EXPERT: Unsecured Creditors to Get 10% Under Plan ----------------------------------------------------------- Star Body Expert, Inc., filed a small business Chapter 11 plan of reorganization and accompanying disclosure statement, proposing to pay Class 5 - General Unsecured Claims a note for an amount equivalent to 10% of their allowed claims ($1,079.95) payable in 60 monthly installments. The total amount of claims in Class 5 is $647,982.88, and will receive 10% of their allowed claims ($64,798.28) in a pro rata basis. Class 2 - Secured Claim No. 1 of First Bank, in the amount of $727,844.46, is reduced to $600,000 which will be paid in the following terms: 240 monthly payment of principal and interest at a rate of 4.25%. The interest rate will be reviewed each fifth anniversary of the first payment and will be modified to a rate equal to 1.25% over the prime rate until final payment of the secure portion of the loan ($600,000), the remaining balance of claim no. 1 will be treated as a general unsecured creditors and will receive disbursement according to Class 5. Class 3 - Small Business Administration will be classified as a general unsecured claim upon confirmation of the plan of reorganization and the lien over the real estate property will be cancelled. Class 4 - Claims of CRIM and PR Treasury Department, which will be paid on a monthly basis until fully paid with an interest rate of 3.5%. The Debtor believes it will have enough cash on hand to pay all the claims and expenses that are entitled to be paid on that date, projecting that the Debtor will have an aggregate annual average cash flow of $10,836 after paying operating expenses and post-confirmation taxes. A full-text copy of the Disclosure Statement is available at http://bankrupt.com/misc/prb15-06125-BKT11-64.pdf About Star Body Expert Star Body Expert, Inc., sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D. P.R. Case No. 15-06125) on August 11, 2015. The petition was signed by Carlos Olivero Pinero, president. The case is assigned to Judge Brian K. Tester. The Debtor is represented by Gerardo L Santiago Puig, Esq., at Santiago Puig Law Offices. At the time of the filing, the Debtor estimated its assets at $500,000 to $1 million and debts at $1 million to $10 million. SUGARMAN'S PLAZA: Hires Phillip Stern as Accountant --------------------------------------------------- Sugarman's Plaza Limited Partnership asks for permission from the Hon. Elizabeth S. Stong of the U.S. Bankruptcy Court for the Eastern District of New York to employ Phillip M. Stern and Co. as accountant, effective July 29, 2016. The accounting services to be rendered as of July 29, 2016, will be as follows: (a) monitoring the activities of the Debtor; (b) assisting in or the preparation of and/or reviewing the monthly operating reports, budgets and projections; (c) reviewing the filed claims for reasonableness against the Debtor's records and filing schedules; (d) interacting with the Creditors' Committee and its retained professionals, should one be appointed; (e) as required, attending meetings with the Debtor and its Counsel, meetings with the Creditors and Court hearings; (f) assisting in the preparation of the Plan of Reorganization and the Disclosure Statement; and (g) other assistance as the Debtor and its counsel may deem necessary. Stern will be paid at these hourly rates: Partner $250 Staff Accountant $140 Stern will also be reimbursed for reasonable out-of-pocket expenses incurred. Phillip Stern, member of Stern, 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. Stern can be reached at: Phillip Stern PHILLIP M. STERN AND CO. 1901 51st Street Brooklyn, NY 11204 Tel: (718) 232-0770 About Sugarman's Plaza Sugarman's Plaza Limited Partnership sought protection under Chapter 11 of the Bankruptcy Code (Bankr. E.D.N.Y. Case No. 16-42496) on June 7, 2016. The petition was signed by Chaim Laufer, general partner of TSC Associates. The case is assigned to Judge Elizabeth S. Stong. At the time of the filing, the Debtor estimated its assets and liabilities at $1 million to $10 million. SUNEDISON INC: Obtains Amendment to DIP Credit Agreement -------------------------------------------------------- Sun Edison, Inc., obtained certain amendments to a Senior Secured Superpriority Debtor-in-Possession Credit Agreement, dated as of April 26, 2016, as amended, entered into by and among the Company, the lenders from time to time party thereto, Deutsche Bank AG New York Branch, as administrative agent, and the letter of credit issuers and other financial institutions and entities party thereto from time to time. The amendments are reflected in an Amendment No. 5 to Senior Secured Superpriority Debtor-in-Possession Credit Agreement, dated as of July 28, 2016, among the Company, the DIP Lenders party thereto and the DIP Agent. The DIP Amendment modifies certain provisions in the DIP Credit Agreement relating to, among other things: (a) guaranty and collateral matters; (b) certain milestones relating to the Company's restructuring efforts; (c) asset sales, including designated assets that constitute permitted dispositions under the DIP Credit Agreement; (d) intercompany loans and restricted payments; (e) withdrawals from the DIP Facilities Blocked Accounts -- as defined in the DIP Credit Agreement; and (f) permitted liens. In connection with the DIP Amendment, the requisite DIP Lenders also approved an updated 13-week budget. In addition, the Company finalized certain amendments to an Indenture, dated as of January 11, 2016, that governs the Company's existing outstanding 5% Guaranteed Convertible Senior Secured Notes due 2018, entered into by and among the Company, the subsidiaries of the Company from time to time party thereto as guarantors and Wilmington Trust, National Association, as trustee. The amendments are reflected in the First Supplemental Indenture, dated as of August 9, 2016, among the Company, the subsidiaries of the Company party thereto as guarantors and the Notes Trustee. The First Supplemental Indenture modifies certain provisions in the Prepetition Second Lien Indenture in order to: (a) facilitate the provision by certain of the Company's subsidiaries of guaranties of, and liens securing, the Prepetition Second Lien Notes pursuant to covenants of the Company set forth in the DIP Credit Agreement and (b) empower, authorize and direct the Notes Trustee to take actions related to the performance by the Company and its subsidiaries under the DIP Credit Agreement and/or the Final DIP Financing Order. In connection therewith, the Company and certain of its subsidiaries that are also guarantors under the DIP Credit Agreement entered into a Second Supplemental Indenture, dated as of August 10, 2016, among the Company, the Additional Guarantors and the Notes Trustee, documenting the guaranty of the Prepetition Second Lien Notes required by the DIP Credit Agreement. The Additional Guarantors also provided a guaranty of the obligations under the Company's Second Lien Credit Agreement, dated as of January 11, 2016. In connection with such guaranties, the Additional Guarantors also granted liens on their assets that constitute collateral under the DIP Credit Agreement, which liens secure the Prepetition Second Lien Notes and obligations under the Company's Prepetition Second Lien Credit Agreement. A copy of the First Supplemental Indenture, dated as of August 9, 2016, among SunEdison, Inc., a debtor and a debtor-in-possession, the subsidiaries of SunEdison, Inc. party thereto as guarantors and Wilmington Trust, National Association, as trustee, is available at https://is.gd/jdCdAM A copy of the Second Supplemental Indenture, dated as of August 10, 2016, among SunEdison, Inc., a debtor and a debtor-in-possession, the subsidiaries of SunEdison, Inc. party thereto as guarantors and Wilmington Trust, National Association, as trustee, is available at https://is.gd/S8zKtI A copy of Amendment No. 5 to Senior Secured Superpriority Debtor-In-Possession Credit Agreement, dated as of July 28, 2016, among SunEdison, Inc., a debtor and a debtor-in-possession, the lenders party thereto and Deutsche Bank AG New York Branch, as the administrative agent, is available at https://is.gd/DGIg4t A copy of the Company's Disclosure Materials is available at https://is.gd/L1kPKi 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 Jay M. Goffman, Esq., Eric J. Ivester, Esq., James J. Mazza, Jr., Esq., and Louis S. Chiappetta, Esq., at 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. In August 2016, Judge Bernstein denied the shareholders' motion for appointment of an official committee of equity security holders. SUNVALLEY SOLAR: Needs More Time to File Form 10-Q -------------------------------------------------- SunValley Solar, Inc., filed a Form 12b-25 with the Securities and Exchange Commission notifying the delay in the filing of its quarterly report on Form 10-Q for the period ended June 30, 2016. The Company was unable to compile the necessary financial information required to prepare a complete filing. Thus, the Company would be unable to file the periodic report in a timely manner without unreasonable effort or expense. The Company expects to file within the extension period. About Sunvalley Solar Sunvalley Solar, Inc., is a California-based solar power technology and system integration company. Since the inception of its business in 2007, the company has focused on developing its expertise and proprietary technology to install residential, commercial and governmental solar power systems. Sunvalley Solar reported net income of $195,811 on $5.78 million of revenues for the year ended Dec. 31, 2015, compared with a net loss of $1.28 million on $3.31 million of revenues for the year ended Dec. 31, 2014. As of March 31, 2016, SunValley had $5.52 million in total assets, $4.18 million in total liabilities and $1.34 million in total stockholders' equity. Sadler, Gibb & Associates, LLC, in Salt Lake City, UT, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2015, citing that the Company has an accumulated deficit of $3.45 million, which raises substantial doubt about its ability to continue as a going concern. TAVERNA OUZO GROUP: Exclusive Plan Filing Date Extended to Nov. 14 ------------------------------------------------------------------ Judge Michael B. Kaplan of the U.S. Bankruptcy Court for the District of New Jersey extended Taverna Ouzo Group, Inc.'s exclusive periods within which to file a plan of reorganization and solicit acceptances thereto. The Debtor's exclusive period within which to file a plan of reorganization was extended from August 14, 2016 to November 14, 2016. The Debtor's exclusive period within which to solicit acceptances of a plan of reorganization was extended from October 13, 2016 to December 12, 2016. Taverno Ouzo Group, Inc. is represented by: Brian W. Hofmeister, Esq. LAW FIRM OF BRIAN W. HOFMEISTER, LLC 691 State Highway 33 Trenton, NJ 08619 Telephone: (609) 890-1500 Email: bwh@hofmeisterfirm.com About Taverna Ouzo Group, Inc. Taverna Ouzo Group, Inc., is a restaurant located at 146 Applegarth Road, Monroe Township, New Jersey 08831. It filed a Chapter 11 petition (Bankr. D.N.J. Case No. 15-21509) on June 19, 2015. The petition was signed by Anastasios Stefanopoulos, president. The Debtor is represented by Brian W. Hofmeister, Esq. -- bwh@hofmeisterfirm.com -- at the Law Firm of Brian W. Hofmeister, LLC. The Debtor estimated assets and liabilities at $0 to $50,000 at the time of the filing. TECHPRECISION CORP: Posts $445,000 Net Income for First Quarter --------------------------------------------------------------- Techprecision Corporation filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing net income of $445,303 on $4.64 million of net sales for the three months ended June 30, 2016, compared to net income of $206,351 on $4.37 million of net sales for the three months ended June 30, 2015. As of June 30, 2016, Techprecision had $11.99 million in total assets, $9.81 million in total liabilities and $2.18 million in total stockholders' equity. "Our liquidity is highly dependent on the availability of financing facilities and our ability to improve our gross profit and operating income. If we successfully execute on our business plans, improve gross profit and operating income, and reduce our operating costs, then we believe our available cash will be sufficient to fund our operations, capital expenditures and principal and interest payments under our debt obligations through the 12 months from the issuance date of our financial statements," the Company said. At June 30, 2016 and March 31, 2016, the Company had working capital of $1.9 million and $0.5 million, respectively. "This was another quarter of operational and financial progress as we delivered a profit for our fifth consecutive quarter," stated Alexander Shen, TechPrecision's chief executive officer. "We more than doubled net income on a 6% increase in sales, as we continue to benefit from our consistent sharp focus on productivity initiatives and top line growth with key customers. This progress has enabled us to refinance our equipment loan with a new lender, part of an ongoing effort to improve our balance sheet. As a result, we reported $2.9 million in cash and $1.9 million in working capital at June 30, 2016, both significantly improved compared to March 31, 2016 levels." "Moving forward, we intend to maintain the sharp focus that led us to this point of our recovery," continued Mr. Shen. "We continue to replenish our backlog, focusing on new business contracts with our core customers which utilize our core competencies in custom, large scale, high precision fabrication and machining, and leverage our established expertise, certifications, and qualifications in the defense, nuclear, and precision industrial sectors." "Our backlog at July 31, 2016 was approximately $20.2 million, compared to $17.1 million and $19.8 million at June 30, 2016 and March 31, 2016, respectively," added Mr. Shen. "We have not altered our focus. We target defense, nuclear and precision industrial as our primary markets." The Company's quarterly report on Form 10-Q is available from the SEC website at https://is.gd/g4hYQT About TechPrecision TechPrecision Corporation (OTC BB: TPCSE), through its wholly owned subsidiaries, Ranor, Inc., and Wuxi Critical Mechanical Components Co., Ltd., globally manufactures large-scale, metal fabricated and machined precision components and equipment. TechPrecision reported net income of $1.35 million on $16.9 million of net sales for the year ended March 31, 2016, compared to a net loss of $3.58 million on $18.2 million of net sales for the year ended March 31, 2015. TELKONET INC.: Incurs $672,000 Net Loss in Second Quarter --------------------------------------------------------- Telkonet, Inc., filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $671,626 on $4.26 million of total net revenue for the three months ended June 30, 2016, compared to net income of $523,511 on $4.75 million of total net revenue for the three months ended June 30, 2015. For the six months ended June 30, 2016, the Company reported a net loss of $551,504 on $8.89 million of total net revenue compared to a net loss of $220,567 on $7.33 million of total net revenue for the six months ended June 30, 2015. As of June 30, 2016, Telkonet had $11.59 million in total assets, $5.57 million in total liabilities and $6.02 million in total stockholders' equity. "While we experienced a significant increase in costs during our fiscal 2016 second quarter, the majority of these were attributable to the contested proxy contest that was completed at our annual Shareholder meeting on June 27. With this conclusion, we've assuaged the concerns of our customers and partners and normalized our expenses to traditional levels," stated Jason Tienor, Telkonet chief executive officer. "With the new board members actively working with our management team, we look forward to continuing the growth rate demonstrated thus far through 2016 and moving the company toward profitability." "Through a quarter of considerable activity, we continued to demonstrate the strength of our platform and our innovation in development. Through growth in the Education, MDU and Multiple Tenant Unit ("MTU") markets, we've shown that we've expanded our portfolio across verticals and increased our total accessible market. We look forward to expanding this growth through new corporate agreements increased channel growth," stated Tienor. The Company's liquidity plan includes reviewing options for raising additional capital including, but not limited to, asset-based or equity financing, private placements, and/or disposition of assets. Management believes that with additional financing, the Company will be able to fund required working capital, research and development and marketing expenses necessary to promote revenue growth. However, any equity financing may be dilutive to stockholders and any additional debt financing would increase expenses and may involve restrictive covenants. While the Company has been successful in securing financing through Sept. 30, 2018, with the Heritage Bank Loan Agreement to provide adequate funding for working capital purposes, there is no assurance that obtaining additional or replacement financing, if needed, will sufficiently fund future operations, repay existing debt or implement the Company's growth strategy. The Company's failure to execute on this strategy may have a material adverse effect on its business, results of operations and financial position. The Company's quarterly report on Form 10-Q is available from the SEC website at https://is.gd/jJozBC About Telkonet Milwaukee, Wisconsin-based Telkonet, Inc., is a clean technology company that develops and manufactures proprietary energy efficiency and smart grid networking technology. Telkonet reported a net loss attributable to common stockholders of $207,357 on $15.08 million of total net revenues for the year ended Dec. 31, 2015, compared with a net loss attributable to common stockholders of $95,403 on $14.79 million of total net revenues for the year ended Dec. 31, 2014. TONGJI HEALTHCARE: Delays Filing of June 30 Form 10-Q ----------------------------------------------------- Tongji Healthcare Group, Inc., has encountered a delay in assembling the information, in particular its financial statements for the quarter ended June 30, 2016, required to be included in its June 30, 2016 Form 10-Q Quarterly Report. The Company expects to file its June 30, 2016 Form 10-Q Quarterly Report with the U.S. Securities and Exchange Commission within 5 calendar days of the prescribed due date. About Tongji Healthcare Based in Nanning, Guangxi, the People's Republic of China, Tongji Healthcare Group, Inc., a Nevada corporation, operates Nanning Tongji Hospital, a general hospital with 105 licensed beds. Tongji reported a net loss of $589,000 on $2.37 million of total operating revenue for the year ended Dec. 31, 2015, compared to a net loss of $462,000 on $2.52 million of total operating revenue for the year ended Dec. 31, 2014. As of March 31, 2016, the Company had $16.92 million in total assets, $19.93 million in total liabilities and a total stockholders' deficit of $3.01 million. Anton & Chia, LLP, in Newport Beach, California, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2015. TRANSGENOMIC INC: Recurring Losses Raise Going Concern Doubt ------------------------------------------------------------ Transgenomic, Inc., filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $997,000 on $505,000 of net sales for the three months ended June 30, 2016, compared to a net loss of $3.27 million on $442,000 of net sales for the three months ended June 30, 2015. For the six months ended June 30, 2016, the Company reported a net loss of $4.26 million on $741,000 of net sales compared to a net loss of $6.31 million on $1.19 million of net sales for the six months ended June 30, 2015. As of June 30, 2016, Transgenomic had $3.09 million in total assets, $19.38 million in total liabilities and a total stockholders' deficit of $16.3 million. The Company has incurred substantial operating losses and has used cash in its operating activities for the past several years. As of June 30, 2016, the Company had negative working capital of $15.9 million. The audit report issued by Ernst & Young LLP, in Hartford, Connecticut, the Company's independent registered public accounting firm, for its financial statements for the fiscal year ended Dec. 31, 2015, states that Ernst & Young has substantial doubt in the Company's ability to continue as a going concern due to the risk that the Company may not have sufficient cash and liquid assets at Dec. 31, 2015, to cover its operating and capital requirements for the next 12 months. "If that is the case, and if sufficient cash cannot be obtained, we would have to substantially alter, or possibly even discontinue, operations. Additionally, as of June 30, 2016, we do not believe that we will have sufficient cash to meet our operating requirements for at least the next 12 months. Our financial statements and related notes thereto included elsewhere in this Quarterly Report on Form 10-Q do not include any adjustments that might result from the outcome of this uncertainty. "Our current operating plan is designed to improve operating results, improve collection rates and monetize underutilized assets. There are no guarantees that these efforts will be successful and, if not, we may use more cash than projected and not be able to meet our current obligations. As with any operating plan, there are risks associated with our ability to execute it. Therefore, there can be no assurance that we will be able to satisfy our obligations, or achieve the operating improvements as contemplated by the current operating plan. If we are unable to execute this plan, we will need to find additional sources of cash not contemplated by the current operating plan and/or raise additional capital to sustain continuing operations as currently contemplated. We could seek to raise additional funds through various potential sources such as through the sale of assets or sale of debt or equity securities. However, there can be no assurance that the additional funding sources will be available to us at reasonable terms or at all. If we are unable to achieve our operating plan or obtain additional financing, our business would be jeopardized and we may not be able to continue as a going concern," the Company stated in the report. The Company's quarterly report on Form 10-Q is available from the SEC website at https://is.gd/xrBaEa About Transgenomic Transgenomic, Inc. -- http://www.transgenomic.com/-- is a global biotechnology company advancing personalized medicine in cardiology, oncology, and inherited diseases through its proprietary molecular technologies and world-class clinical and research services. The Company is a global leader in cardiac genetic testing with a family of innovative products, including its C-GAAP test, designed to detect gene mutations which indicate cardiac disorders, or which can lead to serious adverse events. Transgenomic has three complementary business divisions: Transgenomic Clinical Laboratories, which specializes in molecular diagnostics for cardiology, oncology, neurology, and mitochondrial disorders; Transgenomic Pharmacogenomic Services, a contract research laboratory that specializes in supporting all phases of pre-clinical and clinical trials for oncology drugs in development; and Transgenomic Diagnostic Tools, which produces equipment, reagents, and other consumables that empower clinical and research applications in molecular testing and cytogenetics. Transgenomic believes there is significant opportunity for continued growth across all three businesses by leveraging their synergistic capabilities, technologies, and expertise. The Company actively develops and acquires new technology and other intellectual property that strengthens its leadership in personalized medicine. Transgenomic reported a net loss available to common stockholders of $34.3 million on $1.65 million of net sales for the year ended Dec. 31, 2015, compared to a net loss available to common stockholders of $15.08 million on $1.24 million of net sales for the year ended Dec. 31, 2014. UNIVERSAL SECURITY: Needs More Time to File June 30 Form 10-Q ------------------------------------------------------------- Universal Security Instruments, Inc., filed a Form 12b-25 with the Securities and Exchange Commission notifying the delay in the filing of its quarterly report on Form 10-Q for the period ended June 30, 2016. The Company owns a 50% interest in a Hong Kong Joint Venture operating in the Peoples Republic of China, and financial results of the Joint Venture must be reflected in its Quarterly Report on Form 10-Q. The preparation of the Joint Venture's financial results has not been completed. About Universal Security Owings Mills, Maryland-based Universal Security markets and distributes safety and security products which are primarily manufactured through its 50%-owned Hong Kong Joint Venture. At Dec. 31, 2015, the Company had $20,213,695 in total assets, $3,226,026 in total current liabilities and $16,987,669 in total shareholders' equity. "Our history of operating losses, declining revenues in prior years, and limited financing options raises substantial doubt about our ability to continue as a going concern. The Company had net losses of $1,362,552 for the nine months ended December 31, 2015, and $3,704,985 and $4,450,244 for the fiscal years ended March 31, 2015 and 2014, respectively. The Company is monitoring its liquidity and working capital position in light of continued operating losses, and decreases in its cash and working capital position over the past four fiscal years of operations. In addition to the expanded factoring agreement with Merchant Factors Corporation (Merchant) as discussed below, the Company has negotiated payment terms on its trade accounts payable to the Hong Kong Joint Venture. The payment terms on the trade accounts payable to the Hong Kong Joint Venture provide ninety day repayment terms on up to $1,000,000 of purchases of the Company's new sealed product line. The Company also believes that its cash position can be improved by a combination of reductions in inventory and by lowering expenses. In addition, the Company is prepared to initiate changes in its operations, if needed, to reduce its operating costs while maintaining its current level of customer service. However, there are potential risks, including that the Company's revenues may not reach levels required to return to profitability, costs may exceed the Company's estimates, or the Company's working capital needs may be greater than anticipated. Any of these factors may change the Company's expectation of cash usage in the remainder of the fiscal year ending March 31, 2016, and beyond, or may significantly affect the Company's level of liquidity. These financial statements do not include any adjustments that might result from the Company not being able to continue as a going concern," the Company stated in its quarterly report for the period ended Dec. 31, 2015. VALEANT PHARMACEUTICALS: Lenders Approve Loan Amendment ------------------------------------------------------- Valeant Pharmaceuticals International, Inc. (NYSE/TSX: VRX) has obtained the requisite lender approval for an amendment to its credit facility. The Company expects to close the amendment next week, subject to customary closing conditions. The amendment will: -- reduce the interest coverage maintenance covenant to 2.0x, providing additional headroom; -- provide additional flexibility to sell assets; -- permit the issuance of secured notes with shorter maturities to repay term loans; -- permit the incurrence of other debt to repay term loans The Company has also agreed to increase each of the applicable interest rate margins on its credit facility by 0.50% and to pay an amendment fee equal to 0.25% of the aggregate principal amount of each consenting lender's outstanding loans and commitments under the credit facility. "We are pleased to have the support of our lenders and appreciate their confidence in the Company's future," said Joseph C. Papa, chairman and chief executive officer of Valeant. "The amendment provides us with additional flexibility and allows us to focus on executing our strategic plan, developing our pipeline and improving patients' lives." Anne Steele and Michael Rapoport, writing for The Wall Street Journal, reported the deal gives Valeant gives it more breathing room as it continues to dig out from a year of business and accounting distress. Valeant, the report noted, is aiming to pare its $31 billion debt load. According to the report, the amendment to Valeant's debt agreement eases a requirement for the Company to maintain a minimum level of Ebitda (earnings before interest, taxes, depreciation and amortization) relative to the cash interest it pays on its debt. The deal lowers that required level to Ebitda of two times interest, from its previous 2.75. That effectively allows Valeant to generate less Ebitda while still complying with the requirements set by its loan holders. The report added that the move addresses concerns of analysts that Valeant had too little headroom in producing enough earnings to meet the old requirement. $302-Mil. Net Loss On Aug. 9, Valeant reported that net loss in the second quarter of 2016 was $302 million as compared to a net loss of $53 million in the second quarter of 2015. As of June 30, 2061, the Company had total assets of $47.662 billion and $42.259 billion in total liabilities. A copy of Valeant's Form 10-Q report for the second quarter is available at https://is.gd/2n6b4r The Company said as of June 30, 2016, it was in compliance with all covenants related to the Company's outstanding debt. The total fair value of the Company's long-term debt, with carrying values of $31.07 billion and $31.09 billion at June 30, 2016 and December 31, 2015, was $27.63 billion and $29.60 billion, respectively. On April 11, 2016, the Company obtained an amendment and waiver to its Credit Agreement. Pursuant to the April 2016 amendment, the Company obtained an extension to the deadline for filing (i) the Company's 2015 Form 10-K to May 31, 2016 and (ii) the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2016 to July 31, 2016. The April 2016 amendment also waived, among other things, the cross-default under the Credit Agreement to the Company's and Valeant's senior note indentures that arose when the 2015 Form 10-K was not filed by March 15, 2016, any cross default under the Credit Agreement that may have arisen under the Company's other indebtedness from the failure to timely deliver the 2015 Form 10-K, and the cross default under the Credit Agreement to the Company's and Valeant's senior note indentures that arose when the March 31, 2016 Form 10-Q was not filed by May 16, 2016 or any cross default under the Credit Agreement to the Company's other indebtedness as a result of the delay in filing the March 31, 2016 Form 10-Q. The April 2016 amendment modified, among other things, the interest coverage financial maintenance covenant from 3.00 to 1.00 to 2.75 to 1.00 from the fiscal quarter ending June 30, 2016 through the fiscal quarter ending March 31, 2017. Certain financial definitions were also amended, including the definition of "Consolidated Adjusted EBITDA" which has been modified to add back fees and expenses in connection with any amendment or modification of the Credit Agreement or any other indebtedness, and to permit up to $175 million to be added back in connection with costs, fees and expenses relating to, among other things, Philidor-related matters and/or product pricing-related matters and any review by the Board and the Company's ad hoc committee of independent directors related to such matters. The April 2016 amendment also modified certain existing add-backs to Consolidated Adjusted EBITDA under the Credit Agreement, including increasing the add-back for (i) restructuring charges in any twelve-month period to $200 million from $125 million and (ii) fees and expenses in connection with any proposed or actual issuance of debt, equity, acquisitions, investments, assets sales or divestitures to $150 million from $75 million for any twelve month period ending on or prior to March 31, 2017. The terms of the April 2016 amendment impose a number of restrictions on the Company and its subsidiaries until the time that (i) the Company delivers the 2015 Form 10-K (which was filed on April 29, 2016) and the March 31, 2016 Form 10-Q (which was filed on June 7, 2016) and (ii) the leverage ratio of the Company and its subsidiaries (being the ratio, as of the last day of any fiscal quarter, of Consolidated Total Debt (as defined in the Credit Agreement) as of such day to Consolidated Adjusted EBITDA (as defined in the Credit Agreement) for the four fiscal quarter period ending on such date) is less than 4.50 to 1.00, including imposing (i) a $250 million aggregate cap on acquisitions -- although the Transaction Cap does not apply to any portion of acquisition consideration paid for by either the issuance of the Company's equity or the proceeds of any such equity issuance -- (ii) a restriction on the incurrence of debt to finance such acquisitions and (iii) a requirement that the net proceeds from certain asset sales be used to repay the term loans under the Credit Agreement, instead of investing such net proceeds in real estate, equipment, other tangible assets or intellectual property useful in the business. In addition, the Company's ability to make investments, dividends, distributions, share repurchases and other restricted payments is also restricted and subject to the Transaction Cap until such time as the Financial Reporting Requirements are satisfied and the leverage ratio of the Company and its subsidiaries is less than 4.00 to 1.00 (unless such investments or restricted payments can fit within other existing exceptions set out in the Credit Agreement). The April 2016 amendment also increased the interest rate applicable to the Company's loans under the Credit Agreement by 1.00% until delivery of the Company's financial statements for the fiscal quarter ending June 30, 2017. Thereafter, the interest rate applicable to the loans will be determined on the basis of a pricing grid tied to the Company's secured leverage ratio. With the filing of the March 31, 2016 Form 10-Q on June 7, 2016, the Financial Reporting Requirements were satisfied in all respects. Notices of Default Under Senior Note Indentures The Company's delay in filing the 2015 Form 10-K resulted in a violation of covenants contained in the Company's Credit Agreement and senior note indentures. On April 12, 2016, the Company received a notice of default from certain holders of its 5.50% Senior Notes due 2023 and, on April 22, 2016, the Company received additional notices of default from the trustee under the respective indentures governing the Company's 5.375% Senior Notes due 2020 and 7.50% Senior Notes due 2021 and Valeant's 6.375% Senior Notes due 2020 and 7.250% Senior Notes due 2022. All defaults under the Credit Agreement resulting from the failure to timely deliver the 2015 Form 10-K were waived by the requisite lenders under the Credit Agreement by the April 2016 amendment, and the 2015 Form 10-K was filed within the extended timeframe granted to the Company as part of that amendment and waiver. The filing of the 2015 Form 10-K on April 29, 2016 cured in all respects the default under the Company's senior note indentures triggered by the failure to timely file the 2015 Form 10-K. The Company's delay in filing the March 31, 2016 Form 10-Q resulted in a violation of covenants contained in the Company's senior note indentures. On May 19, 2016, the Company received a notice of default from the trustee under the indenture governing the Company's 5.50% Notes due 2023 and, on June 2, 2016, the Company received an additional notice of default from the trustee under the respective indentures governing the Company's 7.50% Senior Notes due 2021 and Valeant's 7.250% Senior Notes due 2022. All defaults under the Credit Agreement resulting from the failure to timely deliver the March 31, 2016 Form 10-Q were waived by the requisite lenders under the Credit Agreement by the April 2016 amendment and the March 31, 2016 Form 10-Q was filed within the extended timeframe granted to the Company as part of that amendment and waiver. The filing of the March 31, 2016 Form 10-Q on June 7, 2016 cured in all respects the default under the Company's and Valeant's senior note indentures triggered by the failure to timely file the March 31, 2016 Form 10-Q. About Valeant Pharmaceuticals Based in Laval, Quebec, 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 disorders, eye health, neurology and branded generics. VALEANT PHARMACEUTICALS: T. Rowe Price Sues Over Losses ------------------------------------------------------- Michael Rapoport, writing for The Wall Street Journal, reported that T. Rowe Price Group Inc. and Alleghany Cos., shareholders of Valeant Pharmaceuticals International Inc., filed a lawsuit against the Company in the U.S. District Court for the District of New Jersey, alleging it used mail-order pharmacy Philidor Rx Services LLC, deceptive pricing and reimbursement practices and "fictitious accounting" to artificially inflate its results and shield its drugs from competition. According to the report, the lawsuit says Valeant's practices exposed the investors to "massive risks" and resulted in huge losses for shareholders. Valeant has lost about 90% of its value since its August 2015 high, in the wake of disclosures about its relationship with Philidor and its practice under former CEO Michael Pearson of dramatically boosting the prices of its drugs. Mr. Pearson and five other current and former Valeant officials are also defendants in the lawsuit. WSJ previously reported that Valeant is facing criminal investigation over its ties to Philidor, which allegedly used aggressive tactics to get insurers and pharmacy-benefit managers to pay reimbursements for Valeant’s often high-price drugs. In addition, Valeant has said it faces civil investigations by the Securities and Exchange Commission and other regulators. Valeant is also a defendant in a pending shareholder class action lawsuit in New Jersey that makes similar claims against Valeant and has the TIAA pension fund as lead plaintiff. About Valeant Pharmaceuticals Based in Laval, Quebec, 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 disorders, eye health, neurology and branded generics. VERTICAL COMPUTER: Delays Filing of June 30 Form 10-Q ----------------------------------------------------- Vertical Computer Systems, Inc., filed with the Securities and Exchange Commission a Form 12b-25 notifying the delay in the filing of its quarterly report on Form 10-Q for the period ended June 30, 2016. The Company has experienced delays in computing and quantifying required amounts and disclosures of derivative liabilities related to the issuance of convertible debentures. Accordingly, the Company was unable to file its Form 10-Q on or before the prescribed filing date. The Company expects to file the Form 10-Q within five days after the prescribed filing date. About Vertical Computer Richardson, Tex.-based Vertical Computer Systems, Inc., is a multinational provider of Internet core technologies, application software, and software services through its distribution network with operations or sales in the United States, Canada and Brazil. Vertical Computer reported a net loss available to common stockholders of $3.15 million on $4.26 million of total revenues for the year ended Dec. 31, 2015, compared to a net loss available to common stockholders of $2.07 million on $7.43 million of total revenues for the year ended Dec. 31, 2014. As of March 31, 2016, Vertical Systems had $1.52 million in total assets, $18.69 million in total liabilities, $9.90 million in convertible cumulative preferred stock and a total stockholders' deficit of $27.07 million. MaloneBailey, LLP, in Houston, Texas, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2015, citing that the Company suffered net losses and has a working capital deficiency, which raises substantial doubt about its ability to continue as a going concern. VISCOUNT SYSTEMS: Delays Form 10-Q to Complete Review ----------------------------------------------------- Viscount Systems, Inc., was unable to file its quarterly report on Form 10-Q for the fiscal quarter ended June 30, 2016, on a timely basis due to the Company gathering information and completing its review, which required additional time to work internally with its staff and externally to prepare and finalize the Quarterly Report. The Company expects to file its Form 10-Q within the additional time allowed by this report. About Viscount Systems Burnaby, Canada-based Viscount Systems, Inc., is a manufacturer, developer and service provider of access control security products. Viscount reported a net loss attributable to common stockholders of C$6.33 million on C$6.13 million of sales for the year ended Dec. 31, 2015, compared to a net loss of attributable to common stockholders of C$990,681 on C$4.76 million of sales for the year ended Dec. 31, 2014. As of March 31, 2016, Viscount Systems had C$1.37 million in total assets, C$10.03 million in total liabilities and a total stockholders' deficit of C$8.65 million. Dale Matheson Carr-Hilton Labonte LLP, in Vancouver, Canada, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2015, citing that the Company has incurred losses in developing its business, and further losses are anticipated in the future. The Company requires additional funds to meet its obligations and the costs of its operations and there is no assurance that additional financing can be raised when needed. These factors raise substantial doubt about the Company's ability to continue as a going concern, the auditors noted. WANDA ORTIZ CARRERAS: Amended Plan to Pay 42% to Unsecureds ----------------------------------------------------------- Wanda Ortiz Carreras filed with the U.S. Bankruptcy Court for the District of Puerto Rico her First Amended Plan and Disclosure Statement dated as of August 8, 2016. The Debtor says the estimated distribution in a liquidation scenario would be of 38.1%, whereas her First Amended Plan proposes to distribute 42%. The Debtor's schedules of liabilities indicate that the secured claims total $1,573.444. Unsecured claims total including priority amounts total $989,524, and priority claims total $2,152. According to the Plan, general unsecured claims in Class 9 will be paid 42% of their claims within a period of 8 years from the effective date of the plan in monthly installments. In the previous iteration of the Plan, the claims will be paid 31%. The Plan notes that payments are not fixed. During the first five years of the plan, until governmental and secured claims are paid in full, the monthly disbursement to unsecured creditors will total $1,611, during the next two years the disbursements will total $2,820 per month, and during the last year $2,417 per month. A copy of the First Amended Disclosure Statement is available at: http://bankrupt.com/misc/prb14-03693-0149.pdf Wanda Ortiz Carreras filed for Chapter 11 bankruptcy protection (Bankr. D.P.R. Case No. 14-03693) on May 5, 2014, and is represented by: Teresa M. Lube Capo, Esq. LUBE & SOTO LAW OFFICES 1130 F.D. Roosevelt Ave. San Juan, PR 00920-2906 Tel: 722-0909 Fax: 977-1709 E-mail: lubeysoto@gmail.com WARREN RESOURCES: Blames Bankruptcy for Delay in Form 10-Q Filing ----------------------------------------------------------------- James A. Watt, Chief Executive Officer of Warren Resources, Inc., said the Company's quarterly report on Form 10-Q for the period ended June 30, 2016, could not be filed within the prescribed time period. He explains, "on June 2, 2016, the Company and certain of its wholly owned subsidiaries filed voluntary petitions for reorganization (the "Chapter 11 Cases") under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Southern District of Texas. In the time since their filing, the Chapter 11 Cases have required substantial management time and attention, which disrupted the Company's normal closing procedures for the Quarterly Report. Management and the Company's Board of Directors are actively working to compile the required disclosure; however, the foregoing issues have caused the Company to be unable to compile all information necessary to prepare and file the Quarterly Report within the prescribed period without unreasonable effort or expense." "The Company is currently unable to predict when it will be in a position to file the Quarterly Report." About Warren Resources Warren Resources Inc., is an independent energy company engaged in the exploration, development and production of domestic onshore crude oil and natural gas reserves. It is primarily focused on the development of its waterflood oil recovery properties in the Wilmington field within the Los Angeles Basin of California, its position in the Marcellus Shale gas in northeastern Pennsylvania and its coalbed methane, or CBM, natural gas properties located in Wyoming. Warren Resources, Inc., Warren E&P, Inc., Warren Resources of California, Inc., Warren Marcellus LLC, Warren Energy Services, LLC, and Warren Management Corp. each filed a voluntary petition under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Tex. Lead Case No. 16-32760) on June 2, 2016. The Debtors listed total assets of $230 million and total debt of $545 million. The Debtors have hired Andrews Kurth LLP as counsel, Jefferies LLC as investment banker, Deloitte Transactions and Business Analytics LLP as restructuring advisor and Epiq Bankruptcy Solutions, LLC as claims, balloting and noticing agent. Judge Marvin Isgur is assigned the cases. An official committee of unsecured creditors has not yet been appointed in these cases by the Office of the United States Trustee. WAVE SYSTEMS: Court Approves Disclosure Statement ------------------------------------------------- On Feb. 1, 2016, Wave Systems Corp. commenced a bankruptcy case by filing a voluntary petition for relief under Chapter 7 of the Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware. The Company's caption and case number is In re: Wave Systems Corp., Case No. 16-10284 (KJC). David W. Carickhoff was appointed as Chapter 7 trustee. On April 11, 2016, pursuant to a Bankruptcy Court approved process, the Chapter 7 Trustee conducted a live auction for the sale of certain of the Company's assets and/or for the right to be the sponsor of a plan of reorganization for the Company. Chime, Inc., was the successful bidder for the Company's wave.com domain name and, on April 14, 2016, the Bankruptcy Court entered an Order approving the sale of the Company's domain name to Chime free and clear of all liens, claims and encumbrances for a purchase price of $420,000. The sale to Chime closed on April 29, 2016. Conversion to Chapter 11 and Postpetition Financing At the Auction, ESW Capital LLC submitted a bid to provide capital for a restructuring of the Company, to be effectuated in the form of a confirmed Chapter 11 plan of reorganization to be sponsored by ESW for 100% of the equity of the reorganized Company. At the conclusion of the Auction, the Chapter 7 Trustee determined that the ESW Bid was the highest and best offer for the Company. On April 29, 2016, the Bankruptcy Court entered an Order approving the ESW Bid as the highest and best offer for the Company. The ESW Bid contemplates a Chapter 11 plan process pursuant to which ESW would make available for distribution under a plan of reorganization: (i) $3,800,000 (which amount the Chapter 11 Trustee (as defined below) currently has on deposit); and (ii) an additional $3,075,000 payable on the plan effective date. In addition, in connection with the ESW Bid, ESW, in its capacity as post-petition lender, agreed, subject to Bankruptcy Court approval, to provide up to $3,000,000 in post-petition financing to cover operating and administrative expenses associated with preserving the Company's operations and running a Chapter 11 process through a plan effective date. Pursuant to the ESW Bid, ESW, in its capacity as post-petition lender, has the right to convert a portion of amounts loaned under the ESW Post-Petition Facility into equity of the reorganized Company pursuant to the Subscription Option. If the Plan of Reorganization is confirmed, then upon the occurrence of the effective date of the Plan, it is contemplated that on account of its contribution of the Cash Consideration and its exercise of the Subscription Option, ESW will own 100% of the equity of the reorganized Company, including substantially all of the assets of the Company with the exception of certain excluded assets specified therein. The Plan provides the Plan sponsor the right to modify the Subscription Option, provided that (i) no such modification will adversely impact the Plan treatment of other creditors and (ii) such modification is approved by the post-petition lender. The Bankruptcy Court entered an order on May 16, 2016, converting the Chapter 7 Case to a case under the provisions of Chapter 11 of the Bankruptcy Code, and appointing a Chapter 11 Trustee in the Chapter 11 Case. On May 20, 2016, the Office of the United States Trustee appointed the Chapter 7 Trustee as the Chapter 11 Trustee. The Bankruptcy Court entered an interim order on May 25, 2016, authorizing the Chapter 11 Trustee to, among other things, borrow, on an interim basis, up to $1,000,000 under the ESW Post-Petition Facility. On June 13, 2016, the Bankruptcy Court entered a final order pursuant to which it approved the ESW Post-Petition Facility and authorized the Chapter 11 Trustee to enter into and draw upon the remainder of the ESW Post-Petition Facility on a final basis. The ESW Post-Petition Facility is evidenced by a senior secured superpriority promissory note that is governed by the Final Financing Order. Pursuant to the terms of the ESW Bid and the Final Financing Order, the Company has no obligation to satisfy or repay amounts drawn upon the ESW Post-Petition Facility unless one of following specific events of default occur: (1) the Chapter 11 Trustee files a plan of reorganization which is inconsistent with the ESW Bid, (2) the Chapter 11 Trustee files a motion to obtain financing from someone other than ESW, or (3) the Bankruptcy Court confirms a competing plan to the plan of reorganization contemplated under the ESW Bid or approves a transaction for the sale or disposition of the Company's assets other than to ESW. Interest on the Postpetition Note accrues at a rate of 9.0% per annum. The Company's obligations are secured by a first priority security interest in substantially all of the assets of the Company. Upon the occurrence of an event of default, the interest rate on the Post-Petition Note increases to 11.0% per annum. The Postpetition Note contains certain covenants, including, without limitation, those related to the incurrence of additional debt or liens, the sale or transfer of Company property, compliance with the approved budget, and certain bankruptcy-related covenants, in each case as set forth in the Postpetition Note. Proposed Plan On June 17, 2016, the Chapter 11 Trustee filed a proposed Plan of Reorganization of Wave Systems Corp. and disclosure statement with the Bankruptcy Court. An amended Disclosure Statement was filed on July 18, 2016. An amended Plan was filed on July 19, 2016. The Plan, prepared in accordance with the ESW Bid, provides for, on the effective date of the Plan, among other things, (1) the reorganization of the Company by retiring, cancelling, extinguishing and/or discharging the Company's prepetition equity interests and issuing (A) up to 600 shares equal to 60% of the new equity in the reorganized Company to ESW, in its capacity as post-petition lender, in exchange of amounts loaned under the Post-Petition Note via the Subscription Option, and (B) the remaining new equity to ESW, in its capacity as Plan sponsor, in exchange for the cash payments; and (2) the distribution of cash and rights to certain litigation recoveries to the holders of allowed claims and, potentially, equity interests in accordance with the priority scheme established by the Bankruptcy Code. The Reorganized Company will continue in operation after the Effective Date. On the Effective Date, all the previously outstanding common stock of the Company and all rights to convert, exchange or receive Company common stock would be deemed automatically cancelled, released and extinguished, and all rights of ownership evidenced by the common stock terminated, and the Company's pre-reorganization stockholders would not be entitled to receive or retain any cash, securities or other property on account of their cancelled, released, extinguished, and terminated common shares and rights, unless amounts remain in the bankruptcy estate following satisfaction of all allowed claims of the Company's creditors. The Plan is subject to satisfaction of numerous conditions, including receipt of requisite acceptances to confirm the Plan and entry of a confirmation order by the Bankruptcy Court in form and substance acceptable to ESW in its reasonable discretion. On July 19, 2016, the Bankruptcy Court entered an order approving the amended Disclosure Statement and determining the dates, deadlines, solicitation procedures and forms applicable to the Plan approval process. Modified SEC Reporting During the pendency of the Chapter 11 Case, the Company will adopt a modified reporting program with respect to its reporting obligations under the federal securities laws. In lieu of continuing to file Quarterly Reports on Form 10-Q and Annual Reports on Form 10-K under Section 15(d) of the Securities Exchange Act of 1934, the Company will file with the SEC a Current Report on Form 8-K that will have attached to it the monthly financial report required by the Bankruptcy Court. Such bankruptcy filings are generally made on or about the 25th day of each month covering the prior month’s operations. The Company will continue to file Current Reports on Form 8-K as is required by the federal securities laws. The Company believes this modified reporting program is consistent with the protection of its investors as set forth in SEC Release No. 34-9660 (June 30, 1972). Procedures for Trading in Equity Securities On May 20, 2016, the Bankruptcy Court entered an order approving a motion previously filed by the Chapter 11 Trustee that established notice and hearing procedures that must be satisfied before certain transfers of the Company's common stock or any beneficial interest therein will be deemed effective. The purpose of these procedures is to preserve certain tax attributes of the Company, which the Chapter 11 Trustee has concluded are valuable assets of the Company. The procedures would, among other things, require any person or entity that is a "Substantial Shareholder" (as such term is defined in the Trading Procedures Order) to provide advance written notice of certain transactions in the Company's securities to the Bankruptcy Court and would grant the Chapter 11 Trustee the right to object to any such transaction. 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 reported a net loss of $12.9 million in 2014, a net loss of $20.3 million in 2013 and a net loss of $34 million in 2012. WGC INC: Wants Additional 150 Days to File Plan ----------------------------------------------- WGC, Inc., asks the U.S. Bankruptcy Court for the Western District of Pennsylvania to extend its exclusive period within which it may file a plan of reorganization for an additional 150 days. The Debtor operates the golf course at 314 Chestnut Street, in Reno, Pennsylvania, known as Wanango Golf Club, an 18 hole Golf Course, owned by related Debtor HMF Golf Inc. The Debtor tells the Court that it is in negotiations with an interested party who has expressed a serious interest in purchasing the golf course as a going concern. The Debtor submits that successful completion of the negotiations should result in substantial value being paid to creditors. The Debtor contends that the negotiations are both complex and time consuming and that the Debtor requires additional time to finalize said negotiations. The Debtor further contends that the results of those negotiations will control the formulation of Debtor's plan in the case. About WGC, Inc. WGC, Inc., filed a chapter 11 petition (Bankr. W.D. Penn. Case No. 16-10347) on April 13, 2016. The petition was signed by Steven Shingledecker, general manager. The Debtor is represented by Brian C. Thompson, Esq., at Thompson Law Group, P.C. The case is assigned to Judge Thomas P. Agresti. The Debtor estimated assets of $0 to $50,000 and debts of $1 million to $10 million. WHITE STAR: S&P Affirms 'CCC+' CCR, Outlook Negative ---------------------------------------------------- S&P Global Ratings affirmed its 'CCC+' corporate credit rating on Oklahoma-City-based oil and gas exploration and production company White Star Petroleum LLC (formerly American Energy – Woodford LLC). The outlook is negative. Subsequently, S&P withdrew the corporate rating at the issuer's request. WOLVERINE WORLD: S&P Affirms 'BB+' CCR & Revises Outlook to Neg. ---------------------------------------------------------------- S&P Global Ratings affirmed its 'BB+' corporate credit rating on Rockford, Mich.-based Wolverine World Wide Inc. and revised the outlook to negative from stable. At the same time, S&P affirmed its 'BBB' issue-level rating on the company's first-lien credit facilities and assigned S&P's 'BB+' rating to the proposed senior unsecured notes. The recovery rating on the first-lien facilities is unchanged at '1', indicating S&P's expectation of very high (90% to 100%) recovery in the event of a payment default, while the assigned recovery rating for the proposed senior unsecured notes is '4', indicating S&P's expectation of average (30% to 50%, at the lower half of the range) recovery in the event of payment default. Concurrently, S&P assigned its 'BBB' issue-level and '1' recovery rating on the incremental term loan A-1. S&P estimates the company's adjusted debt was approximately $960 million as of June 30, 2016, which includes S&P's adjustment for operating leases. "The revision of the outlook on Wolverine World Wide to negative from stable reflects the possibility that Wolverine may not restore credit metrics and cash flow in line with our base-case forecast should the operating environment continue to weaken in the second-half of 2016," said S&P Global Ratings credit analyst Peter Deluca. "The company has commenced a restructuring program that should result in margin expansion; however, it is too soon to determine if it will be successful and we expect the retail environment to remain difficult." The ratings reflect Wolverine's strong market position and diversified client base as well as its narrow business focus and participation in fragmented and highly competitive business segments. S&P believes Wolverine's market position remains relatively strong as one of the largest footwear companies, with significant brand recognition, scale of operations, an international footprint. This is supported by the company's strong marketing and sales effort, good niche positions in the U.S. footwear market, meaningful scale of operations (with $2.6 billion in revenue), and portfolio of well-known footwear brands. However, the business continues to be narrowly focused in the casual footwear sector and only has modest geographic diversification, given that it generates about 25% of revenue, representing about 46% of pairs sold, outside of North America. Moreover, the company participates in the highly competitive footwear sector, which is vulnerable to fashion risk and economic cycles. S&P Global Ratings could downgrade Wolverine should debt-to-EBITDA leverage not return to below 3x by the time the company reports its operating results for the year ended Dec. 31, 2016. Alternatively, S&P could revise the rating outlook to stable over the next year if Wolverine's restructuring initiatives prove successful, leading to restored revenue, profit, and cash flow growth such that the company sustains debt-to-EBITDA below 3x. S&P estimates it would need to sustain EBITDA above $350 million (assuming current debt) for this to occur. YAHWEH CENTER: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: Yahweh Center, Inc. aka Yahweh Center Children's Village P.O. Box 10399 Wilmington, NC 28404 Case No.: 16-04306 Nature of Business: Health Care Chapter 11 Petition Date: August 17, 2016 Court: United States Bankruptcy Court Eastern District of North Carolina (Wilmington Division) Judge: Hon. Joseph N. Callaway Debtor's Counsel: Trawick H Stubbs, Jr., Esq. STUBBS & PERDUE, P.A. P. O. Drawer 1654 New Bern, NC 28563 Tel: 252 633-2700 Fax: 252 633-9600 Email: efile@stubbsperdue.com Total Assets: $1.87 million Total Liabilities: $2.40 million The petition was signed by Carla J. Roberts, executive director. A copy of the Debtor's list of 20 largest unsecured creditors is available for free at http://bankrupt.com/misc/nceb16-04306.pdf ZYNEX INC: Delays Filing of June 30 Form 10-Q --------------------------------------------- Zynex, Inc., said it needs additional time to finalize its Form 10-Q for the three and six months ended June 30, 2016. The primary reason for the delay is a change in financial staff of the Company resulting in delays for completing all necessary work. Zynex cannot complete this process as of the due date of its 10-Q filing without incurring unreasonable effort and expense. About Zynex Zynex, Inc. (OTCQB: ZYXI) specializes in the production and sale of non-invasive medical devices for pain management, stroke rehabilitation, neurodiagnostic equipment, cardiac and blood volume monitoring. The company maintains its headquarters in Lone Tree, Colorado. Zynex reported a net loss of $2.93 million on $11.64 million of net revenue for the year ended Dec. 31, 2015, compared to a net loss of $6.23 million on $11.11 million of net revenue for the year ended Dec. 31, 2014. As of March 31, 2016, Zynex had $4.19 million in total assets, $8.55 million in total liabilities and a total stockholders' deficit of $4.35 million. GHP Horwath, P.C., in Denver, Colorado, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2015, citing that the Company incurred significant losses in 2015 and 2014, and has limited liquidity. In addition, the Company is in default of its secured line of credit and as a result, if its lender insists upon immediate repayment, the Company will be insolvent and may be forced to seek protection from its creditors. These factors raise substantial doubt about its ability to continue as a going concern. ********* 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 ***