/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/160914.mbx T R O U B L E D C O M P A N Y R E P O R T E R Wednesday, September 14, 2016, Vol. 20, No. 258 Headlines ABC DISPOSAL: Court Extends Plan Filing Period Through Oct. 17 ADVANCED MICRO DEVICES: Offering 100M Shares & $700M Senior Notes AEROPOSTALE INC: Wins Approval of $243-Mil. Sale to Mall Group AIR CANADA: Fitch Assigns 'BB+' Rating on New Senior Secured Debt ALEXANDRE DANILENKO: Wife to Contribute to Plan Funding ALL TYPE CONTRACTING: Gets Final Authority to Access Cash ALLIED SYSTEMS: Yucaipa Suit Against Black Diamond, Spectrum Nixed AMERICAN INT'L: Case of Former Chief Going to Trial After 11 Years AMERICAN RAILCAR: Egan-Jones Cuts Sr. Unsec. Ratings to BB+ AOG ENTERTAINMENT: Court Extends Plan Filing Period to Oct. 25 ARCH COAL: Court Confirms Amended Plan of Reorganization ARCH COAL: Restructuring Plan Wins Court Approval ARCH COAL: Seeks to Move Exclusive Plan Filing Period to Oct. 7 ARIZONA ACADEMY: Hires Davis Miles as Counsel ARMADA WATER: Wants Plan Filing Period Moved To January 2017 AT HOME: S&P Assigns 'B' Corp. Credit Rating, Outlook Stable AV HOMES: Egan-Jones Hikes Sr. Unsec. Debt Ratings to B B&B REAL ESTATE: Hires Michael Baxter as Real Estate Agent B5 INC: U.S. Trustee Unable to Appoint Committee BIOANALYTICAL SYSTEMS: Defaults on Huntington Bank Credit Line BIOLARGO INC: Recurring Losses Raises Going Concern Doubt BRYAN FORESEE: Disclosures Okayed; Plan Hearing on Oct. 12 C-N-T REDI MIX: Unsecureds To Recover 40% Under Plan CALIFORNIA RESOURCES: S&P Raises CCR to CCC+, Outlook Negative CARDIAC SCIENCE: Houlihan Can't Unilaterally Waive Consent CC SPORTS: Unsecureds To Recover at Least 10% Under Plan CENTRAL GARDEN: Egan-Jones Hikes Sr. Unsec. Debt Ratings to BB- CHRISTOPHER PAYNE: Employs Olson Nicoud & Gueck as Attorney CLAIRE'S STORES: Appoints SVP & Chief Financial Officer CLEAR CREEK RETIREMENT: To Sell Real Property to NDA Under Plan COMMUNITY HOME: Ch. 11 Trustee Granted Over $19K Interim Payment COMMUNITY HOME: Ch. 11 Trustee Granted Over $68K Interim Payment COMPANION DX: Creditors' Panel Hires Okin Adams as Counsel COMPANION DX: Creditors' Panel Hires Sheppard Mullin as Counsel CONSTELLATION ENTERPRISES: Committee Reaches Unsec. Claims Deal CORNERSTONE DENTISTRY: Hires Paul Reece Marr as Attorney CRN INC: Plan Confirmation Hearing on Oct. 13 CSC HOLDINGS: S&P Assigns 'BB-' Rating on $1.9BB Sr. Notes CVR NITROGEN: S&P Affirms Then Withdraws 'B+' CCR DCP MIDSTREAM: Fitch Affirms 'BB+' Long-Term Issuer Default Rating DEAN YOUNG: Hires Moore Taylor as Attorney DELCATH SYSTEMS: Recurring Losses Raises Going Concern Doubt DESERT LAND: Court Disqualifies Hutchison as Counsel DIANE ROSE MAESTRI: Files Full-Payment Ch. 11 Plan DRYSDALE VILLAGE: U.S. Trustee Unable to Appoint Committee ELEPHANT TALK: Receives Noncompliance Notice from NYSE MKT ELEPHANT TALK: Sold 73 Series A Shares for $729,968 ELEPHANT TALK: To Offer $20 Million Worth of Securities ELIZABETH ARDEN: Egan-Jones Hikes Sr. Unsec. Rating to CCC+ ENERGY FUTURE: Reaches $11.8M Deal With Texas Comptroller ERICKSON INC: S&P Retains 'CCC' Rating on 2nd Lien Notes ESSER REALTY: Unsecureds to Get 5% On Effective Date EXTREME PLASTICS: Plan Filing Deadline Extended Through Oct. 30 FIRST DATA: Capital Research Holds 15.2M CL-A Shares as of Aug. 31 FKF 3 LLC: Suit vs. Principals To Be Heard in District Court FLOUR CITY: Bankruptcy Judge Rejects $5-Mil. Bid from Lender FRYMIRE SERVICES: Court OKs Cash Collateral Use on Final Basis G-I HOLDINGS: NYCHA's Indemnity, Restitution Claims Dismissed GARDENS REGIONAL: Creditors' Panel Hires Bienert as Special Atty. GARDENS REGIONAL: Spine Surgical, Gardena Removed from Committee GR HOSPITALITY: Wants to Use Lakeland West Cash Collateral GREAT BASIN: Had 64.27M Outstanding Common Shares as of Sept. 9 GREEN PLAINS: Egan-Jones Cuts LC Sr. Unsec. Debt Rating to B GUIDED THERAPEUTICS: Amends Current Report to Correct Typo GYPSUM MANAGEMENT: S&P Raises CCR to 'B+', Outlook Stable HALCON RESOURCES: Amends Certificate of Incorporation & Bylaws HANISH LLC: Can Access Cash Held by Phoenix Until Nov. 9 HANJIN SHIPPING: Secures $45M, More May Take "Considerable Time" HARRINGTON & KING: Seeks to Extend Plan Filing Period to Jan. 2017 HOOPER HOLMES: Liquidity Concerns Raise Going Concern Doubt HORSEHEAD HOLDING: Court Confirms 2nd Amended Plan HOVNANIAN ENTERPRISES: Incurs $474,000 Net Loss in Third Quarter IMAGEWARE SYSTEMS: Creates Series F Convertible Preferred Stock INCYTE CORP: Egan-Jones Hikes Sr. Unsecured Debt Ratings to BB- INT'L MANUFACTURING: Trustee Hires Baker & McKenzie as Counsel INT'L TECHNICAL COATINGS: Hires Gavlick as Auctioneer INT'L TECHNICAL COATINGS: Taps Cincinnati Industrial as Auctioneer ISTAR INC: BlackRock Reports 10% Equity Stake as of Aug. 31 KATHERINE MONTGOMERY: Bankr. Administrator Objects to Plan Outline KENT MANOR: Wants to Employ Century 21 as Broker to Sell Inn KNS INC: Can Use Up to $360K of Core Bank Cash Through Oct. 7 KYEUNG GUK MIN: Unsecureds To Recoup 10% Under Plan LEWIS HEALTH: Seeks Dec. 26 Exclusive Plan Filing Period Extension LIGHT TOWER: Employs Prime Clerk as Claims and Noticing Agent LIVING COLOUR: Court Allows Nov. 17 Plan Filing Extension LUVIS AMBULANCE: Taps Manuel Feliciano Rios as Fin'l Consultant MALIBU LIGHTING: Wants Exclusive Plan Period Moved to Jan. 2017 MANUFACTURERS ASSOCIATES: Trustee Hires Blum Shapiro as Accountant MAXIM CRANE: S&P Withdraws 'B' CCR on Apollo Acquisition MCDERMOTT INT'L: Egan-Jones Lowers Sr. Unsec. Ratings to B+ MICHAEL D COHEN MD: Case Summary & 18 Top Unsecured Creditors MICHAEL D COHEN MD: Files for Chapter 11 Bankruptcy Protection MICHAEL D COHEN MD: Wants to Use Secured Lenders' Cash Collateral MID-STATES SUPPLY: Seeks to Move Exclusive Plan Filing to Oct. 6 MODULAR SPACE: S&P Lowers CCR to 'SD', Off CreditWatch Negative NORTEK INC: S&P Withdraws 'B' Corporate Credit Rating NORTHWEST PEDIATRIC: Seeks to Extend Plan Exclusivity to Jan. 2017 NYC DIPLOMAT: Employs Hugh L. Rothbaum as Bankruptcy Attorney OBERFIELD PRECAST: U.S. Trustee Unable to Appoint Committee OCI BEAUMONT: S&P Lowers CCR to 'CCC+' on Weak Credit Metrics OLIN CORP: Egan-Jones Cuts Sr. Unsec. Ratings to BB- ORANGE PEEL: Seeks to Hire Buratti PA as Debtor's Special Counsel PALMAZ SCIENTIFIC: Over $310K Atty's Fees, Expenses Awarded to NRF PATRIOT ONE: Wants to Employ O Lampl Law Office as Attorney PAUL BURGETTE MOHR: Disclosures OK'd; Plan Hearing on Sept. 29 PEABODY ENERGY: ELPC Objects to Illinois Settlement PENN VIRGINIA: Reorganization Plan Takes Effect, Exits Chapter 11 PERSISTENCE PARTNERS: Employs Coan Lewendon as General Counsel PETROQUEST ENERGY: Announces Results of Exchange Offers PICO HOLDINGS: Bloggers Explain CEO Hart Bonus Workaround PODIUM PERFORMANCE: Hires White-Boyd as Attorney PRO-FIT DEVELOPMENT: U.S. Trustee Unable to Appoint Committee PROLINE CONCRETE: Hires Amigone Sanchez as General Ch. 11 Counsel QUEENSBORO 1: Seeks to Hire Sembler Company as Property Manager R&M GENERAL: Taps Hodges Doughty as General Bankruptcy Counsel R&M GENERAL: Wants to Access Cash Collateral of Wells Fargo RESIDENTIAL CAPITAL: Stay Does Not Bar Foreclosure Sale of HOA Lien RIVERSIDE MILITARY: Fitch Affirms BB+ $66MM Refunding Bonds Rating RIVERSIDE MULCH: Oct. 14 Liquidation Plan Confirmation Hearing ROCKY ASPEN: Ch.11 Trustee Taps Cordes & Company as Accountant ROTARY DRILLING: Creditors' Panel Hires McKool Smith as Counsel RP CROWN: S&P Retains 'CCC+' CCR on CreditWatch Positive RPM AUTOMOTIVE: Trustee Hires Manty & Associates as Counsel S DIAMOND STEEL: U.S. Trustee Unable to Appoint Committee S-3 PUMP SERVICE: Taps Cook Yancey and Gaudry Ranson as Counsel SALTY DOG REST: Trade Creditors to Receive 75% Under Plan SARPONG LLC: Case Summary & 7 Unsecured Creditors SFX ENTERTAINMENT: Seeks Probe Over Digital Music Charts SHRI GURUKRUPA: Employs Tate M. Russack and RLC PA as Counsel SHRI GURUKRUPA: Hires Arun Chawla as Certified Public Accountants SMARTMALLOW FARMS: U.S. Trustee Unable to Appoint Committee SON CORP: Selling Pacoima Property to G&M Gapco for $3M SPX CORP: Egan-Jones Upgrades Sr. Unsecured Debt Ratings to BB SQUIRE COURT: Case Summary & 20 Largest Unsecured Creditors STEMCELLS INC: Winding Down Operations, May File for Bankruptcy STEREO ONE: U.S. Trustee Objects to Plan, Disclosure Statement STERLING ENGINEERING: Plan Filing Deadline Extended Until Nov. 24 SUNEDISON INC: Cobalt Partners Securities Suit Sent to S.D.N.Y. SYDELL INC: Hires GGG Partners as Financial Consultants TALBOT ENTERPRISES: Needs Additional 31 Days to Complete Plan TEXARKANA ARKANSAS: Hires Joyce Lindauer as Bankruptcy Counsel TIMOTHY BINKLEY: Secured Creditors to Be Paid in 3 Years Under Plan TRIN POLYMERS: Has Final Authority to Use Cash Collateral TRINITY RIVER: Court OKs Cash Collateral Use Until September 30 TRIPLE C FLATBED: U.S. Trustee Unable to Appoint Committee UNITED MOBILE: Court Allows Cash Use on Final Basis Through Nov. 17 UNREIN & COMPANY: Can File Plan and Disclosure Until Nov. 7 VAPOR CORP: Warrant Obligations Raises Going Concern Doubt VERSUM MATERIALS: S&P Assigns 'BB' CCR, Outlook Stable W&T OFFSHORE: S&P Cuts CCR to 'SD' on Distressed Exchange WALTER ENERGY: Court Approves Sale of Canadian Assets to Conuma WILLOW CREEK: Court Recommends Striking Herman's Answer WOO LI: Plan Has Conditional OK; Oct. 4 Confirmation Hearing Set WTB 5 ENTERPRISES: Hearing on Disclosures Set For Oct. 4 [*] Oil Bankruptcies Leave Lenders w/ "Catastrophic" Recovery Rate ********* ABC DISPOSAL: Court Extends Plan Filing Period Through Oct. 17 -------------------------------------------------------------- Judge Joan N. Feeney of the U.S. Bankruptcy Court for the District of Massachusetts extended ABC Disposal Service, Inc., and its affiliated debtors' exclusive period within which only the Debtors may file a plan of reorganization, from Sept. 9, 2016 through and including Oct. 17, 2016, and the deadline for acceptance of a plan of reorganization filed by the Debtors, from Nov. 8, 2016 through and including Dec. 9, 2016. The Court also gives notice that during a hearing held on the Debtor's Motion and the objection filed by Small Business Term Loans, Inc. d/b/a BFS Capital, Counsel to the Debtor reported on the record that an agreement had been reached with BFS Capital and Webster Bank, N.A. A continued hearing on the Motion will be held on Oct. 13, 2016 at 1:00 p.m. The deadline for Webster, BMO, BFS Capital, and the Committee to object to the Motion is extended to October 11, 2016. The Troubled Company Reporter reported earlier that the Debtors ask the Court to extend the exclusive period to file a plan through Jan. 6, 2017, and to solicit acceptances of their plan through March 8, 2017, in order to allow the Debtors to continue to build upon the progress made in the initial months of the Chapter 11 cases and focus their resources developing a plan of reorganization, and to maintain a controlled environment within which they can pursue their organization efforts and work with their creditor constituencies. About ABC Disposal ABC Disposal Service, Inc., provides full service waste hauling, disposal and recycling services, and sells, rents and services compaction and baling equipment to a variety of industrial, institutional, commercial and construction related customers. New Bedford Waste owns and operates municipal solid waste and construction and demolition debris transfer stations in New Bedford, Sandwich, and Rochester, Massachusetts which transfer and process residential, commercial, industrial, and institutional and construction wastes under approved state and local government permits and licenses. Solid Waste Services, Inc., is a Massachusetts corporation organized in 1999 to hold an ownership interest in New Bedford Waste. Shawmut Associates and A&L Enterprises are Massachusetts limited liability companies which own and lease real estate to ABC and New Bedford Waste in connection with their operations. ZERO Waste Solutions, LLC, is a Massachusetts limited liability company formed in 2013 for the purposes of developing and operating an advanced mixed waste recycling facility located on Shawmut Associates' Rochester property to process and market recyclable material and then turn unrecyclable material into compact, clean burning, high yield fuel briquettes which have a variety of industrial uses. The principals of the Debtors are Laurinda F. Camara and her children Susan M. Sebastiao, Kenneth J. Camara, Steven A. Camara, and Michael A. Camara. Each of the Principals owns 20% of the stock in ABC.Ã‚ Each of Susan M. Sebastiao, Kenneth J. Camara, Steven A. Camara and Michael A. Camara own a 12.5% interest in New Bedford Waste and a 25% interest in Shawmut Associates, A&L Enterprises, and Solid Waste Services. Solid Waste Services owns the remaining 50% of the membership interests in New Bedford Waste. New Bedford Waste owns 80% of the membership interests in ZERO Waste. ABC Disposal Service, Inc., New Bedford Waste Services, LLC, Solid Waste Services, Inc., Shawmut Associates, LLC, A&L Enterprises, LLC, and ZERO Waste Solutions, LLC each filed a voluntary petition under Chapter 11 of the Bankruptcy Code (Bankr. D. Mass. Case Nos. 16-11787 to 16-11792, respectively) on May 11, 2016. The petitions were signed by Michael A. Camara as vice president/CEO. Judge Joan N. Feeney presides over the cases. Murphy & King Professional Corporation serves as the Debtors' counsel. Argus Management Corp. serves as their financial advisor. The Official Committee of Unsecured Creditors tapped Jager Smith P.C. as counsel. ADVANCED MICRO DEVICES: Offering 100M Shares & $700M Senior Notes ----------------------------------------------------------------- Advanced Micro Devices, Inc., filed with the Securities and Exchange Commission a free writing prospectus relating to the offering of 100,000,000 shares of common stock of the Company (or 115,000,000 shares of Common Stock if the underwriters' option to purchase an additional 15,000,000 shares of Common Stock is fully exercised). The Company is offering those shares to the public at $6.00 per share. The last reported sale price of the Company's common stock on the Nasdaq Stock Exchange on Sept. 8, 2016, was $6.22 per share. The Company estimates that the net proceeds from the Common Stock Offering will be approximately $580.5 million, or approximately $667.6 million if the underwriters exercise their option pursuant to the Common Stock Offering to purchase additional shares of Common Stock in full, after deducting estimated underwriting discounts and commissions and estimated offering expenses payable by the Company. The Company anticipates that it will use the net proceeds of the Common Stock Offering, together with the net proceeds of the Convertible Notes Offering, to repay up to $226 million of its borrowings under the Amended and Restated Loan Agreement and to purchase up to $1,260 million aggregate total consideration of its Senior Notes (assuming no proceeds are used for the repayment of the borrowings under the Amended and Restated Loan Agreement). Joint Book-Running Managers: J.P. Morgan Securities LLC Barclays Capital Inc. Credit Suisse Securities (USA) LLC Merrill Lynch, Pierce, Fenner & Smith Incorporated Wells Fargo Securities, LLC Deutsche Bank Securities Inc. Morgan Stanley & Co. LLC Notes Offering Concurrently, the Company is offering $700,000,000 aggregate principal amount of 2.125% convertible senior notes due 2026 (or $805,000,000 aggregate principal amount if the underwriters' over-allotment option to purchase up to an additional $105,000,000 principal amount of Notes is exercised in full). The Notes' maturity date is Sept. 1, 2026, unless earlier repurchased or converted. The Notes bear an interest rate of 2.125% per annum, accruing from the Settlement Date. Interest are payable on March 1 and September 1 of each year, beginning on March 1, 2017. The Company estimates that the net proceeds from the Convertible Notes Offering will be approximately $680.0 million (or approximately $782.1 million if the underwriters exercise their over-allotment option), after deducting estimated underwriting discounts and commissions fees and estimated offering expenses payable by the Company. Joint Book-Running Managers: J.P. Morgan Securities LLC Barclays Capital Inc. Credit Suisse Securities (USA) LLC Merrill Lynch, Pierce, Fenner & Smith Incorporated Wells Fargo Securities, LLC A full-text copy of the free writing prospectus is available at: https://is.gd/SGkJQz About Advanced Micro Devices Sunnyvale, California-based Advanced Micro Devices, Inc., is a global semiconductor company. The Company's products include x86 microprocessors and graphics. Advanced Micro incurred a net loss of $660 million on $3.99 billion of net revenue for the year ended Dec. 26, 2015, compared to a net loss of $403 million on $5.50 billion of net revenue for the year ended Dec. 27, 2014. As of June 25, 2016, the Company had $3.31 billion in total assets, $3.72 billion in total liabilities, and a $413 million total stockholders' deficit. * * * As reported by the TCR on Oct. 22, 2015, Standard & Poor's Ratings Services said it lowered its corporate credit rating on Sunnyvale, Calif.-based Advanced Micro Devices Inc. to 'CCC+' from 'B-'. "The downgrade reflects our expectation that AMD will experience a more gradual return to revenue growth, ongoing competitive challenges to restore operating profitability, and more severe operating losses and negative free cash flow through 2016 than we had previously forecast, despite recent improvements to its liquidity," said Standard & Poor's credit analyst John Moore. As reported by the TCR on March 16, 2016, Fitch Ratings has downgraded and withdrawn the ratings for Advanced Micro Devices, Inc. (AMD) including the Long-term Issuer Default Rating (IDR) to 'CCC' from 'B-'. The downgrade reflects prospects for negative free cash flow (FCF) over the intermediate term and the consequent liquidity issues and refinancing risk that could develop as the 2019 and 2020 debt maturities approach. In July 2015, Moody's Investors Service lowered Advanced Micro Devices, Inc's ("AMD") corporate family rating to Caa1 from B3, and the ratings on the senior unsecured notes to Caa2 from Caa1. The downgrade of the corporate family rating to Caa1 reflects AMD's prospects for ongoing operating losses over the next year and negative free cash flow. AEROPOSTALE INC: Wins Approval of $243-Mil. Sale to Mall Group -------------------------------------------------------------- Tiffany Kary, writing for Bloomberg News, reported that teen clothing retailer Aeropostale Inc. won court permission to sell its assets to buyers led by Simon Property Group Inc. and General Growth Properties Inc. after the landlords banded together with liquidators to save jobs and stores -- a novel approach that lawyers said could be a model for distressed retailers. According to the report, the group prevailed at a Sept. 2 auction with a $243 million bid and a plan to keep open at least 229 stores. U.S. Bankruptcy Judge Sean Lane approved the sale in Manhattan court on Sept. 12 after being told by the retailer's lawyers that the arrangement would save at least 7,000 jobs, the report said. "This could be a model for future restructurings in the years ahead," Ray Schrock, a lawyer for Aeropostale, told Judge Lane, the report related. Simon was a landlord at more than 160 Aeropostale stores at the time of the New York-based chain's bankruptcy in May, the report noted, citing the court filings. When no bids to buy the company as a going concern emerged, Simon and General Growth, also an Aeropostale landlord, started exploring ways to save a key tenant, the report related, citing a court filing by Stanley Shashoua, a vice president at Simon. They got Authentic Brands Group LLC, Hilco Merchant Resources LLC and Gordon Brothers Retail Partners LLC to join in a bidding consortium, the report further cited Mr. Shashoua as saying. Before that, the retailer only had bids to liquidate its assets, including an opening offer from a joint venture of Tiger Capital Group and Great American Group for $184 million, Mr. Schrock told Judge Lane, the report related. About Aeropostale Inc. Aeropostale, Inc. (OTC Pink: AROPQ) is a specialty retailer of casual apparel and accessories, principally serving young women and men through its Aeropostale(R) and Aeropostale Factory(TM) stores and website and 4 to 12 year-olds through its P.S. from Aeropostale stores and website. The Company provides customers with a focused selection of high quality fashion and fashion basic merchandise at compelling values in an exciting and customer friendly store environment. Aeropostale maintains control over its proprietary brands by designing, sourcing, marketing and selling all of its own merchandise. As of May 1, 2016 the Company operated 739 Aeropostale(R) stores in 50 states and Puerto Rico, 41 Aeropostale stores in Canada and 25 P.S. from Aeropostale(R) stores in 12 states. In addition, pursuant to various licensing agreements, the Company's licensees currently operate 322 Aeropostale(R) and P.S. from Aeropostale(R) locations in the Middle East, Asia, Europe, and Latin America. Since November 2012, Aeropostale, Inc. has operated GoJane.com, an online women's fashion footwear and apparel retailer. Aeropostale, Inc., and 10 of its affiliates each filed a voluntary petition under Chapter 11 of the Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No. 16-11275) on May 4, 2016. The petitions were signed by Marc G. Schuback as senior vice president, general counsel and secretary. The Debtors listed total assets of $354.38 million and total debts of $390.02 million as of Jan. 30, 2016. The Debtors have hired Weil, Gotshal & Manges LLP as counsel; FTI Consulting, Inc., as restructuring advisor; Stifel, Nicolaus & Company, Inc., and Miller Buckfire & Company LLC as investment bankers; RCS Real Estate Advisors as real estate advisors; Prime Clerk LLC as claims and noticing agent; Stikeman Elliot LLP as Canadian counsel; and Togut, Segal & Segal LLP as conflicts counsel. Judge Sean H. Lane is assigned to the cases. The U.S. trustee for Region 2 on May 11, 2016, appointed seven creditors of Aeropostale Inc. to serve on the official committee of unsecured creditors. The Committee hired Pachulski Stang Ziehl & Jones LLP as counsel. AIR CANADA: Fitch Assigns 'BB+' Rating on New Senior Secured Debt ----------------------------------------------------------------- Fitch Ratings has assigned a rating of 'BB+(EXP)/RR1' to Air Canada's new proposed senior secured debt issuance. Proceeds from the issuance will be used, along with cash, to refinance Air Canada's existing secured term loan B and first and second lien senior secured notes. Fitch currently rates Air Canada 'B+' with a Positive Rating Outlook. Air Canada is expected to raise around USD$950 million of new debt through the issuance of a new secured term loan B. The term loan will feature a seven-year tenor. Air Canada will also upsize its revolving credit facility to USD$300 million from its current size of USD$210 million. Collateral for the facility will consist of Air Canada's Asian Pacific route rights, slots at certain airports including Heathrow, LaGuardia, and DCA, as well as some real estate and ground equipment. The collateral package excludes the engines and accounts receivable that are included as security for Air Canada's existing facility. The refinancing will push a material amount of Air Canada's debt maturities from the 2019-2020 timeframe out to 2023 as it redeems its existing first and second lien secured notes and term loan B. The use of cash to pay down some existing debt will also result in a moderate reduction in Air Canada's gross leverage metrics, which Fitch currently calculates at 3.8x. KEY RATING DRIVERS The 'BB+(EXP)/RR1' rating is driven by Fitch's recovery analysis, which distributes an estimated distressed enterprise value to various classes of debt based on a going concern valuation. Recovery estimates in a going concern scenario are supported by the strategic importance of the collateral to Air Canada. Recovery in a liquidation scenario would be more uncertain as the route rights and slots that collateralize the transaction are intangible and inherently difficult to value. The 'RR1' rating indicates Fitch's expectation that the 1st lien secured debt holders would recover 91%-100% of principal in a distress situation. Ratings on the proposed issuance are consistent with Fitch's rating for AC's existing senior secured debt. The Positive Outlook on Air Canada's IDR is supported by improving financial results, reduced pension obligations, and longer-term commitment to de-leveraging. Over the intermediate term, Fitch expects AC to continue generating solid financial results, with operating margins remaining well above historical levels produced prior to 2013. KEY ASSUMPTIONS -- Continued moderate growth in demand for air travel through the forecast period; -- Fuel prices increasing to about $65/barrel by 2018; -- Air Canada's capacity continues to grow in the high single- digit range. RATING SENSITIVITIES Future actions that may individually or collectively cause Fitch to take a positive rating action include: -- Sustained adjusted debt/EBITDAR below 4.0x; -- EBITDAR margins sustained above 15%, EBIT margins above 10%; -- Better than expected (neutral or positive) free cash flow generation over the intermediate term. Although AC's current credit metrics are roughly in-line with those outlined above, future positive rating actions may be driven by expectations for metrics to be sustained amidst a more difficult operating environment (i.e. higher fuel prices or a notable drop in demand). Future actions that may individually or collectively cause Fitch to take a negative rating action include: -- Weaker than expected margin performance or higher than expected borrowing causing leverage to reach or exceed 5x; -- Weaker than expected financial performance causing free cash flow to be notably below Fitch's expectations; -- A decline in the company's EBIT margin to the low single digits, EBITDAR margins into the high single digits. LIQUIDITY Air Canada's liquidity is supportive of the rating. At June 30, 2016 the company had a cash and short-term investments balance of $3.1 billion and an undrawn revolver of $210 million. Total liquidity is equal to 24% of LTM revenue, which Fitch considers more than adequate given manageable upcoming debt maturities and expectations for Air Canada to generate meaningful operating cash flows. FULL LIST OF RATING ACTIONS Fitch has assigned the following ratings to the proposed issuance: Air Canada -- Senior secured term loan B 'BB+(EXP)/RR1'; -- Senior secured revolving credit facility 'BB+(EXP)/RR1'. Fitch currently rates Air Canada as follows: -- Long-term IDR 'B+'; -- Senior secured first-lien term loan 'BB+/RR1'; -- Senior secured revolving credit facility 'BB+/RR1'; -- Senior secured second-lien debt 'BB+/RR1'; -- Senior unsecured debt 'B+/RR4'. ALEXANDRE DANILENKO: Wife to Contribute to Plan Funding ------------------------------------------------------- Alexandre Danilenko, a financial consultant, filed with the U.S. Bankruptcy Court for the Eastern District of New York a second amended disclosure statement dated Sept. 6, 2016, to accompany its Chapter 11 plan. A full-text copy of the Plan outline is available at: http://bankrupt.com/misc/15-45622-36.pdf The Amended Disclosure Statement provides that the Plan will be financed from income generated from the Debtor's employment. Additionally, the Debtor's wife is also employed full time and intends to make a monthly contribution to the Debtor's monthly budget of all of her disposable income left available after the deduction of any personal expenses. Class II Unsecured Claims, which total $172,454, will be paid 10% of their allowed claims in 36 equal monthly installments effective 30 days after the effective date of the Plan. About Alexandre Danilenko Alexandre Danilenko (Bankr. E.D.N.Y. Case No. 15-45622) filed a Chapter 11 Petition on December 16, 2015. The Debtor is represented by: Allan Kachan, Esq. 3099 Coney Island Ave., 3rd Floor Brooklyn, NY 11235 Tel: (718) 513-3145 ALL TYPE CONTRACTING: Gets Final Authority to Access Cash --------------------------------------------------------- Judge Barry S. Schermer of the U.S. Bankrupty Court for the Eastern District of Missouri permitted All Type Contracting, LLC to use the Cash Collateral of Internal Revenue Service on a final basis. The use of cash collateral is subject to these terms: A. IRS will have a new lien in the post-petition accounts receivable of the Debtor's estate as adequate protection for use of its cash collateral. B. The Debtor is directed pay to IRS $3,235.97 on or before September 28, 2016 and by the 28th day of each subsequent month. C. The Debtor is directed to maintain a policy of property and casualty insurance on all of its personal property at all times. A full-text copy of the Final Cash Collateral Order, dated September 1, 2016, is available at https://is.gd/Xh3TRo About All Type Contracting, LLC All Type Contracting, LLC filed a Chapter 11 bankruptcy petition (Bankr. E.D. Mo. Case No. 16-10509) on June 16, 2016. The petition was signed by Brian R. Blair, president/owner. The Debtor is represented by Thomas Riske, Esq., at Desai Eggman Mason LLC. The case is assigned to Judge Barry S. Schermer. At the time of filing, the Debtor estimated assets at $100,000 to $500,000 and liabilities at $500,001 to $1 million. ALLIED SYSTEMS: Yucaipa Suit Against Black Diamond, Spectrum Nixed ------------------------------------------------------------------ Black Diamond Capital Management, L.L.C. ("Black Diamond") and Spectrum Group Management, L.L.C. ("Spectrum") recently received a favorable ruling in their long running dispute with Yucaipa Cos. Ltd ("Yucaipa") in connection with their investment in Allied Systems Holdings Inc. In a written opinion, the Honorable Judge Sue L. Robinson of the U.S. District Court in Delaware granted their motion to dismiss a lawsuit asserting claims against the firms under the Racketeer Influenced and Corrupt Organization Act ("RICO") by Yucaipa, finding there was "no plausible basis" for the claims. Dismissal of the lawsuit is the latest in a series of favorable court rulings for Black Diamond and Spectrum in their litigation with Yucaipa in connection with the Allied Systems Holdings Inc. bankruptcy case. Previously, courts have ruled in favor of Black Diamond and Spectrum on significant motions in the litigation at least half a dozen times, including determining and later upholding Black Diamond's and Spectrum's primacy over Yucaipa as so-called requisite lenders, under certain financing agreements provided to Allied Systems. "We appreciate the Court's careful review of this matter and are pleased to have these meritless claims dismissed," said Robert J. Ward of Schulte Roth & Zabel LLP. "We now look forward to pursuing vigorously the substantial claims that we and Allied's unsecured creditors' committee have asserted against Yucaipa for its actions involving Allied." Black Diamond and Spectrum are represented by Adam G. Landis and Kerri K. Mumford of Landis Rath & Cobb LLP, and Adam C. Harris, Robert J. Ward and David M. Hillman of Schulte Roth & Zabel LLP. About Black Diamond Capital Management, L.L.C. Black Diamond is a leading alternative asset management firm with over $8 billion in assets under management across three complementary investment platforms: Control Distressed/Private Equity Funds, a Hedge Fund and CLOs and other structured vehicles. About Spectrum Group Management, L.L.C. Spectrum Group Management is an alternative asset management firm that focuses on event driven investing in the distressed, special situations, and asset-based credit markets. Spectrum has developed an extensive network for originating "off the run" investment opportunities. Its investment portfolios target low volatility, minimal correlation and attractive risk-adjusted returns throughout the economic cycle. About Allied Systems Holdings BDCM Opportunity Fund II, LP, Spectrum Investment Partners LP, and Black Diamond CLO 2005-1 Adviser L.L.C., filed involuntary petitions for Allied Systems Holdings Inc. and Allied Systems Ltd. (Bankr. D. Del. Case Nos. 12-11564 and 12-11565) on May 17, 2012. The signatories of the involuntary petitions assert claims of at least $52.8 million for loan defaults by the two companies. Allied Systems, through its subsidiaries, provides logistics, distribution, and transportation services for the automotive industry in North America. Allied Holdings Inc. first filed for chapter 11 protection (Bankr. N.D. Ga. Case Nos. 05-12515 through 05-12537) on July 31, 2005. Jeffrey W. Kelley, Esq., at Troutman Sanders, LLP, represented the Debtors in the 2005 case. Allied won confirmation of a reorganization plan and emerged from bankruptcy in May 2007 with $265 million in first-lien debt and $50 million in second-lien debt. The petitioning creditors said Allied defaulted on payments of $57.4 million on the first lien debt and $9.6 million on the second. They hold $47.9 million, or about 20% of the first-lien debt, and about $5 million, or 17%, of the second-lien obligation. They are represented by Adam G. Landis, Esq., and Kerri K. Mumford, Esq., at Landis Rath & Cobb LLP; and Adam C. Harris, Esq., and Robert J. Ward, Esq., at Schulte Roth & Zabel LLP. Allied Systems Holdings Inc. formally put itself and 18 subsidiaries into bankruptcy reorganization June 10, 2012, following the filing of the involuntary Chapter 11 petition. The Company is being advised by Mark D. Collins, Esq., at Richards, Layton & Finger, P.A., and Jeffrey W. Kelley, Esq., at Troutman Sanders, Gowling Lafleur Henderson. The bankruptcy court process does not include captive insurance company Haul Insurance Limited or any of the Company's Mexican or Bermudan subsidiaries. The Company also announced that it intends to seek foreign recognition of its Chapter 11 cases in Canada. An official committee of unsecured creditors has been appointed in the case. The Committee consists of Pension Benefit Guaranty Corporation, Central States Pension Fund, Teamsters National Automobile Transporters Industry Negotiating Committee, and General Motors LLC. The Committee is represented by Sidley Austin LLP. In January 2014, the U.S. Trustee for Region 3 appointed a three-member Official Committee of Retirees. Yucaipa Cos. has 55% of the senior debt and took the position it had the right to control actions the indenture trustee would take on behalf of debt holders. The state court ruled in March 2013 that the loan documents didn't allow Yucaipa to vote. In March 2013, the bankruptcy court gave the official creditors' committee authority to sue Yucaipa. The suit includes claims that the debt held by Yucaipa should be treated as equity or subordinated so everyone else is paid before the Los Angeles-based owner. The judge allowed Black Diamond to participate in the lawsuit against Yucaipa and Allied directors. Yucaipa American Alliance Fund I, L.P., Yucaipa American Alliance (Parallel) Fund I, L.P., Yucaipa American Alliance Fund II, L.P., Yucaipa American Alliance (Parallel) Fund II, L.P., represented by Michael R. Nestor, Esq., and Edmund L. Morton, Esq., at Young Conaway Stargatt & Taylor, LLP; and Robert A. Klyman, Esq., at Gibson, Dunn & Crutcher LLP. First Lien Agent, Black Diamond Commercial Finance, L.L.C., represented by Adam G. Landis, Esq., and Kerri K. Mumford, Esq., at Landis Rath & Cobb LLP; and Adam C. Harris, Esq., Robert J. Ward, Esq., and David M. Hillman, Esq., at Schulte Roth & Zabel LLP. Allied Systems Holdings, Inc., has changed its name to ASHINC Corporation. * * * ASHINC Corporation, f/k/a Allied Systems Holdings, Inc., and its debtor affiliates filed with the U.S. Bankruptcy Court for the District of Delaware a joint Chapter 11 plan of reorganization, co-proposed by the Committee and the first lien agents. The Plan provides that certain of the Debtors' assets, the Litigation Trust Assets, will vest in the Allied Litigation Trust, and the remainder of the Debtors' assets, including the proceeds from the sale of substantially all of the Debtors' assets, will either revest in the Reorganized Debtors or be distributed to the Debtors' creditors. AMERICAN INT'L: Case of Former Chief Going to Trial After 11 Years ------------------------------------------------------------------ Randall Smith, writing for The New York Times, reported that more than 11 years after civil charges were filed, New York's case against Maurice R. Greenberg, the former chief executive of the insurance giant American International Group, goes to trial this week. According to the report, the charges date to an era when Eliot Spitzer, then the New York State attorney general, brought a barrage of cases accusing Wall Street research analysts of biased research, mutual fund operators of trading practices that shortchanged average investors, and insurance brokers of bid-rigging and kickbacks. Mr. Greenberg and A.I.G.'s former chief financial officer, Howard I. Smith, are accused in part of engineering bogus reinsurance transactions in 2000 and 2001 to bolster reserves to make the company's numbers look better to Wall Street, the report related. They are also accused of orchestrating other transactions that allowed A.I.G. to convert insurance losses into investment losses, the report further related. Now 91, Mr. Greenberg, known as Hank, has long denied the allegations, the report said. When the charges were brought in May 2005, he accused Mr. Spitzer of seeking to retaliate against him for criticizing certain prosecutions, the report added. Mr. Spitzer had just forced the ouster of Mr. Greenberg's son Jeffrey as chief executive of Marsh & McLennan after charging the insurance broker with bid-rigging and kickbacks, the report said. About AIG With corporate headquarters in New York, American International Group, Inc., is an international insurance company, serving customers in more than 130 countries. AIG companies serve commercial, institutional and individual customers through property-casualty networks of any insurer. In addition, AIG companies are providers of life insurance and retirement services. At the height of the 2008 financial crisis, AIG experienced a liquidity crunch when its credit ratings were downgraded below "AA" levels by Standard & Poor's, Moody's Investors Service and Fitch Ratings. AIG almost collapsed under the weight of bad bets it made insuring mortgage-backed securities. The Company, however, was bailed out by the Federal Reserve, but even after an initial infusion of $85 billion, losses continued to grow. The later rescue packages brought the total to $182 billion, making it the biggest federal bailout in U.S. history. AIG sold off a number of its businesses and other assets to pay down loans received from the U.S. government. AMERICAN RAILCAR: Egan-Jones Cuts Sr. Unsec. Ratings to BB+ ----------------------------------------------------------- Egan-Jones Ratings Company downgraded the senior unsecured ratings on debt issued by American Railcar Industries Inc. to BB+ from BBB- on Aug. 24, 2016. American Railcar Industries is an American manufacturer and maintainer of hopper and tanker railcars, headquarterd in Saint Charles, Missouri. AOG ENTERTAINMENT: Court Extends Plan Filing Period to Oct. 25 -------------------------------------------------------------- Judge Stuart M. Bernstein of the U.S. Bankruptcy Court for the Southern District of New York extends for 60 days AOG Entertainment, Inc., and its affiliates' exclusive filing period through and including Oct. 25, 2016, and their exclusive solicitation period through and including Dec. 23, 2016. The Troubled Company Reporter on Aug. 23, 2016, reported that the Debtors requested the Court for a 60-day extension of their exclusivity periods out of an abundance of caution to ensure that they have an opportunity to confirm and consummate the Plan, or if need be, a modified plan, before the Exclusive Periods expire since the Debtors' Disclosure Statement has been approved and the Debtors have already commenced solicitation of votes thereto. About AOG Entertainment CORE Entertainment Inc. and its subsidiaries own, produce, develop and commercially exploit entertainment content. The Company's portfolio of world-class brands and entertainment properties includes participation in the "IDOL"-branded shows, including American Idol, Deutschland sucht den Superstar, Nouvelle Star and more than fifty other franchises shown around the world, and the popular television series "So You Think You Can Dance". The Company conducts its primary business activities through its subsidiary groups, including 19 Entertainment. CORE Entertainment Inc. and 47 other affiliates each filed a Chapter 11 bankruptcy petition (Bankr. S.D.N.Y. Case Nos. 16-11087 to 16-11134, respectively) on April 28, 2016, two days prior to the expiration of their forbearance agreement with (a) certain lenders holding the requisite amount of loans under a first lien term loan facility; and (b) Crestview Media Investors, L.P., as lender under the first lien term loan facility and a second lien term loan facility. Pursuant to the Forbearance Agreements, the lenders agreed to forbear from exercising their remedies on account of any missed payments or certain alleged defaults under the Term Loan Agreements. The Debtors estimated assets and liabilities in the range of $100 million to $500 million. The Debtors have hired Matthew A. Feldman, Esq., Paul V. Shalhoub, Esq., and Andrew S. Mordkoff, Esq., at Willkie Farr & Gallagher LLP as counsel, Moelis & Company, LLC as financial advisor, PricewaterhouseCoopers LLP as auditors and tax consultants and Kurtzman Carson Consultants LLC as claims, noticing and administrative agent. The cases are jointly administered under AOG Entertainment, Inc., Case No. 16-11090 before the Honorable Stuart M. Bernstein. The official committee of unsecured creditors retained Zolfo Cooper, LLC as its financial advisor; and Sheppard Mullin Richter & Hampton, LLP as counsel. * * * AOG Entertainment, Inc., et al., filed with the U.S. Bankruptcy Court for the Southern District of New York a disclosure statement for the Debtor's first amended joint Chapter 11 plan of reorganization. Holders of Class 5 General Unsecured Claims, estimated at $23.92 million, will recover 3.5%. The Disclosure Statement is available at: http://bankrupt.com/misc/nysb16-11090-250.pdf ARCH COAL: Court Confirms Amended Plan of Reorganization -------------------------------------------------------- Arch Coal, Inc., on Sept. 13, 2016, disclosed that, just over eight months after filing for Chapter 11, the United States Bankruptcy Court for the Eastern District of Missouri has confirmed its Amended Plan of Reorganization (the "Plan"). Arch expects to emerge from bankruptcy in early October. "The Court's confirmation of our Plan is the final legal step in our successful financial restructuring," said John W. Eaves, Arch's CEO. "We will emerge as a strong, well-positioned natural resource company with a compelling plan for value creation. We have accomplished a great deal through the restructuring process and are confident that we have established a solid foundation for long-term success, built on our strong metallurgical and thermal franchises and our core commitment to safety and environmental excellence. We thank our customers and vendors for their important support, as well as our employees for their great dedication to Arch." The Plan, which received overwhelming support from Arch's creditors, incorporates and implements the terms of a global settlement agreement the company reached with certain of its senior secured lenders and the Official Committee of Unsecured Creditors (the "UCC"). The Plan eliminates more than $4.7 billion in debt from Arch's balance sheet, significantly enhancing the company's financial flexibility. "We appreciate the cooperation of our lenders and creditors, as well as their advisors, who worked constructively with us to complete Arch's financial restructuring in an expeditious and efficient manner," Mr. Eaves said. Davis Polk & Wardwell LLP is serving as legal advisor to Arch Coal, and PJT Partners is serving as financial advisor. About Arch Coal Founded in 1969, Arch Coal, Inc., is a producer and marketer of coal in the United States, with operations and coal reserves in each of the major coal-producing regions of the Country. As of January 2016, it was the second-largest holder of coal reserves in the United States, owning or controlling over five billion tons of proven and probable reserves. As of the Petition Date, Arch employed approximately 4,600 full and part-time employees. Arch Coal, Inc., and 71 of its affiliates filed Chapter 11 bankruptcy petitions (Bankr. E.D. Mo. Case Nos. 16-40120 to 16-40191) on Jan. 11, 2016. The petition was signed by Robert G. Jones as senior vice president-law, general counsel and secretary. The Debtors disclosed total assets of $5.84 billion and total debt of $6.45 billion. Judge Charles E. Rendlen III has been assigned the case. The Debtors have engaged Davis Polk & Wardwell LLP as counsel, Bryan Cave LLP as local counsel, FTI Consulting, Inc. as restructuring advisor, PJT Partners as investment banker, and Prime Clerk LLC as notice, claims and solicitation agent. An Official Committee of Unsecured Creditors has been appointed in the case. The Committee has retained Kramer Levin Naftalis & Frankel LLP as counsel; Spencer Fane LLP as local counsel; Berkeley Research Group, LLC as financial advisor; Jefferies LLC as investment banker; and Blackacre LLC as coal consultant. ARCH COAL: Restructuring Plan Wins Court Approval ------------------------------------------------- Jacqueline Palank, writing for The Wall Street Journal Pro Bankruptcy, reported that Arch Coal Inc. on Sept. 13 secured bankruptcy-court approval for a plan to cull nearly $5 billion in debt from its books and emerge from chapter 11 protection. According to the report, the U.S. Bankruptcy Court in St. Louis confirmed Arch's chapter 11 plan of reorganization, the company said, adding that it expects to exit bankruptcy protection in early October. "We have accomplished a great deal through the restructuring process and are confident that we have established a solid foundation for long-term success," the report said, citing Arch Chief Executive John W. Eaves as saying in a statement. The plan reduces Arch's debt load by about $4.7 billion and ensures that the company will be a "lean, mean, fighting machine for the coming era, which will remain challenging and complicated for the U.S. coal industry," the report added, citing Arch bankruptcy lawyer Marshall Huebner as saying. Unsecured creditors including bondholders will get $30 million in cash and 6% of the new shares, the report related, citing court papers. Bondholders also get to choose between warrants to buy up to 12% of Arch's new common shares or $25 million in additional cash, the report further related. All of the stock distributions are subject to dilution by the warrants and a management incentive program, the report said. The plan ultimately carried broad support from Arch creditors -- according to Mr. Huebner, more than 96% of creditors who cast ballots on the plan voted in favor -- but drew an objection from the U.S. Trustee, a federal bankruptcy watchdog, who opposed the plan's liability releases for the lawyers and advisers to various Arch creditors, the report related. Judge Charles E. Rendlen III overruled that objection, pointing to the consensual nature of the plan, the report said. WSJ also related that days before the confirmation hearing, Arch revised its restructuring plan to include a pledge of additional assurance of its ability to cover environmental liabilities at its mines in Wyoming, where it is one of the biggest coal mining companies in the Powder River Basin. The amended plan provides for Arch, within 15 days of exiting bankruptcy, to replace all of its self-bonds in Wyoming with bonds backed by insurance, cash or other collateral, the report said. Wyoming is the only state where Arch has self-bonds, the report added, citing court papers. About Arch Coal Founded in 1969, Arch Coal, Inc., is a producer and marketer of coal in the United States, with operations and coal reserves in each of the major coal-producing regions of the Country. As of January 2016, it was the second-largest holder of coal reserves in the United States, owning or controlling over five billion tons of proven and probable reserves. As of the Petition Date, Arch employed approximately 4,600 full and part-time employees. Arch Coal, Inc., and 71 of its affiliates filed Chapter 11 bankruptcy petitions (Bankr. E.D. Mo. Case Nos. 16-40120 to 16-40191) on Jan. 11, 2016. The petition was signed by Robert G. Jones as senior vice president-law, general counsel and secretary. The Debtors disclosed total assets of $5.84 billion and total debt of $6.45 billion. Judge Charles E. Rendlen III has been assigned the case. The Debtors have engaged Davis Polk & Wardwell LLP as counsel, Bryan Cave LLP as local counsel, FTI Consulting, Inc. as restructuring advisor, PJT Partners as investment banker, and Prime Clerk LLC as notice, claims and solicitation agent. An Official Committee of Unsecured Creditors has been appointed in the case. The Committee has retained Kramer Levin Naftalis & Frankel LLP as counsel; Spencer Fane LLP as local counsel; Berkeley Research Group, LLC as financial advisor; Jefferies LLC as investment banker; and Blackacre LLC as coal consultant. * * * Arch Coal, Inc., on July 8, 2016, disclosed that the U.S. Bankruptcy Court for the Eastern District of Missouri has approved the Disclosure Statement filed in connection with the company's proposed Plan of Reorganization. With this approval, Arch can begin to solicit approval of the Plan from its creditors. A hearing to consider confirmation of the Plan by the Bankruptcy Court is scheduled to commence on Sept. 13. ARCH COAL: Seeks to Move Exclusive Plan Filing Period to Oct. 7 --------------------------------------------------------------- Arch Coal, Inc. and its subsidiaries request the U.S. Bankruptcy Court for the Eastern District of Missouri Court for a 30-day extension of its exclusive period to file a Chapter 11 plan, from Sept. 7, 2016 to Oct. 7, 2016. The Debtors seek this extension to ensure that their plan of reorganization best addresses the interests of the Debtors and their employees, creditors and estates. The Debtors relate that since the filing of the First Exclusivity Motion, the Debtors continue to work diligently on multiple fronts to maintain the stability of their businesses and enhance the profitability of their operations using the tools available to them under the Bankruptcy Code, with a focus on maximizing creditor recoveries, continuing to operate safe and environmentally sound mine sites and preserving jobs and benefits for thousands of families. The Debtors further relate that they have also dedicated significant time and resources, together with their advisors, to, among other things, (a) negotiating the RSA and Plan, (b) obtaining entry of an order approving the adequacy of the Disclosure Statement, (c) soliciting votes on the Plan, (d) analyzing thousands of leases and executory contracts to identify those that are beneficial to the Debtors’ estates and should be assumed and those that should be rejected, (e) meeting with parties who raised formal and informal objections to various aspects of the Plan and the Disclosure Statement and (f) responding to a multitude of creditor, supplier and customer inquiries. About Arch Coal Founded in 1969, Arch Coal, Inc., is a producer and marketer of coal in the United States, with operations and coal reserves in each of the major coal-producing regions of the Country. As of January 2016, it was the second-largest holder of coal reserves in the United States, owning or controlling over five billion tons of proven and probable reserves. As of the Petition Date, Arch employed approximately 4,600 full and part-time employees. Arch Coal, Inc., and 71 of its affiliates filed Chapter 11 bankruptcy petitions (Bankr. E.D. Mo. Case Nos. 16-40120 to 16-40191) on Jan. 11, 2016. The petition was signed by Robert G. Jones as senior vice president-law, general counsel and secretary. The Debtors disclosed total assets of $5.84 billion and total debt of $6.45 billion. Judge Charles E. Rendlen III has been assigned the case. The Debtors have engaged Davis Polk & Wardwell LLP as counsel, Bryan Cave LLP as local counsel, FTI Consulting, Inc. as restructuring advisor, PJT Partners as investment banker, and Prime Clerk LLC as notice, claims and solicitation agent. An Official Committee of Unsecured Creditors has been appointed in the case. The Committee has retained Kramer Levin Naftalis & Frankel LLP as counsel; Spencer Fane LLP as local counsel; Berkeley Research Group, LLC as financial advisor; Jefferies LLC as investment banker; and Blackacre LLC as coal consultant. ARIZONA ACADEMY: Hires Davis Miles as Counsel --------------------------------------------- Arizona Academy of Science and Technology, Inc., seeks authorization from the U.S. Bankruptcy Court for the District of Arizona to employ Davis Miles McGuire Gardner, PLLC as counsel for the Debtor. The Debtor requires Davis Miles to: a. advise the Debtor as to its rights, duties, and powers as debtor in possession; b. prepare and file statements, schedules, plans, and other documents and pleadings necessary to be filed by the Debtor in this case c. represent the Debtor at all hearings, meetings of creditors, conferences, trials, and other proceedings in this case; and d. perform other legals services as may be necessary in connection with this case. Davis Miles will be paid at these hourly rates: Partner $380 Associate $240 Paralegal $125 Aubrey L. Thomas, Esq., attorney of the law firm of Davis Miles McGuire Gardner, PLLC, assured the Court that the firm does not represent any interest adverse to the Debtor and its estates. Davis Miles may be reached at: Aubrey L. Thomas, Esq. Davis Miles McGuire Gardner, PLLC 9 W. Cherry Avenue, Suite B  Flagstaff, AZ 86001  Tel: 928-779-1173  Fax: 877-715-7366 E-mail: athomas@davismiles.com About Arizona Academy of Science and Technology, Inc.   Arizona Academy of Science and Technology, Inc. filed a Chapter 11 bankruptcy petition (Bankr. D.Ariz. Case No. 16-09573) on August 18, 2016. Hon. Scott H. Gan presides over the case. Davis Miles McGuire Gardner, PLLC represents the Debtor as counsel. In its petition, the Debtor estimated $0 to $50,000 in assets and $1 million to $10 million in liabilities. The petition was signed by Grant Creech, director. ARMADA WATER: Wants Plan Filing Period Moved To January 2017 ------------------------------------------------------------ Armada Water Assets, Inc. and its subsidiaries request the U.S. Bankruptcy Court for the Southern District of Texas to extend the exclusive periods to file and solicit acceptance of a plan to January 18, 2017 and March 20, 2017, respectively. The Debtors seek for an expedited relief because they learned of two new issues that require additional time to draft and file a plan, to wit: (a) the discovery of an alleged Joint Development Agreement with RecyClean Consulting Services, Inc., and (b) the United States Trustee's appointment of an Official Committee of Unsecured Creditors two weeks ago. The Counsel to the Debtors, and indeed all of the Debtors' officers and directors with the exception of the former CFO Sami Ahmad, were unaware of the executed Recyclean JDA until after the recent section 341 meeting. The Recyclean JDA could impact the new technology that is a component of the Debtors' contemplated plan for which the Debtors must investigate before filing their plan. The Debtors and Recyclean are discussing options, but are unlikely to resolve the issue before September 20, 2016. The Debtors intend to work with counsel for the Committee toward the goal of filing a consensual plan with respect to the recent appointment of a Committee. The Debtors believe that given the delayed appointment, the Debtors and the Committee will probably not complete negotiations before September 20, 2016. About Armada Water Assets Armada Water Assets, Inc., and its affiliates sought protection under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Texas Lead Case No. 16-60056) on May 23, 2016. The petition was signed by Tom Breen, chief restructuring officer. The cases are pending joint administration before Judge David R. Jones under proposed Lead Case No. 16-60056. The Debtors estimated both assets and liabilities in the range of $10 million to $50 million. The U.S. Trustee for the Southern District of Texas, on Aug. 18 appointed two creditors of Armada Water Assets, Inc., et al., to serve on the official committee of unsecured creditors. The committee members are: Pac-Van, Inc., and M & M Excavation Inc. AT HOME: S&P Assigns 'B' Corp. Credit Rating, Outlook Stable ------------------------------------------------------------ S&P Global Ratings said that it assigned its 'B' corporate credit rating to Plano, Texas–based home decor retailer At Home Group Inc. The outlook is stable. S&P raised its existing corporate credit rating on subsidiary At Home Holding III Inc. to 'B' from 'B-' and subsequently withdrew the rating, given S&P rates the company on a consolidated basis at At Home Group Inc. In addition, S&P raised its issue-level rating on the $300 million ($296 million outstanding) first-lien term loan to 'B' from ''B-'. The recovery rating remains '3', indicating S&P's expectation for meaningful recovery of principal in the event of a payment default at the low end of the 50% to 70% range. S&P does not rate the company's revolver and second-lien term loan. The upgrade reflects S&P's expectation for stronger EBITDA margins and profitability as At Home continues to pursue its large-format, high SKU-count store base expansion focusing on maintaining its warehouse-like low service business model in the coming year. In S&P's view, increased marketing efforts, the successful rebranding of the store base, and a focus on annually refreshed, mostly private label merchandise at everyday low prices have been successful with its customers. This is evidenced by healthy 4% comparable sales growth and 25% revenue growth last year, as well as EBITDA margins in the low 20% range, well ahead of home furnishing peers. S&P also believes At Home has been taking market share from larger peers such as Pier 1 Imports, smaller format stores, and independent and discount retailers. The company has achieved strong operating results despite high overall competitive pressure in the home decor and furniture sector given the expansion of HomeGoods stores, and online competition from Amazon and Wayfair. That said, S&P continues to see execution risks in the company's continued aggressive growth and accompanying high planned capital expenditures, dependence on continued sale leasebacks or mortgages to maintain positive free cash flow, and articulated strategy of limited e-commerce presence. Additionally, although growing, At Home still represents a negligible market share in the widely fragmented home decor space. Specific assumptions in S&P's forecast for fiscal 2016 include: -- S&P Global Ratings now expects the economy to grow by 2.0% in 2016 and 2.4% in 2017, with U.S. real GDP and consumer spending remaining in the low-single-digit area; -- Revenue growth of around 18% in 2016 and 17% in 2017 given S&P expects same store sales growth in the low single digits in the coming year, with the company adding 22 and 24 net new stores respectively in 2016 and 2017; -- Adjusted EBITDA margins improve to 24% in 2016 and then soften to 23.7% in 2017 as the company increases its investments in personnel and marketing and improves its direct sourcing capabilities; and -- No dividends or share repurchases. S&P expects negative free operating cash flow of about $20 million in 2016, offset with more than $70 million of net proceeds contracted from sale leasebacks in 2016. S&P expects the company to use proceeds to repay borrowings under the ABL facility and to further invest in new store development. Offsetting this is a notable improvement in credit metrics given management's commitment to repay debt with IPO proceeds, with leverage declining to 5.1x in the year ending January 2017 from 6.5x at the end of fiscal 2015. S&P projects debt leverage declining to the mid-to high 4.0x in 2017, funds from operations to total debt (FFO/TD) in the 10% to 13% range, and EBITDA interest coverage ratio to remain above 3.0x by the end of fiscal 2017. Post the IPO, financial sponsor ownership of At Home by AEA Investors and Starr Investment Holdings still remains high at 85% and the private equity sponsors will continue to exercise significant influence over financial and business policies. The stable outlook on At Home reflects S&P's expectation that the company's unique physical store expansion format, diverse SKU count, and everyday low prices will continue to attract customers in the coming year. However, S&P remains cautious about the company's aggressive store growth plans, high capital investments, and lack of meaningful e-commerce presence. S&P would lower the ratings if At Home is unable to manage growth on a leverage neutral basis, whether from margin dilutive e-commerce expansion or from traffic and average ticket declines that prompt additional promotional selling. This would result in a slowdown of revenue growth to below 14%, gross and EBITDA margin declines of more than 200 basis points, and a leverage increase to the low-to mid 5.0x in the 2017 period. S&P would also consider a lower rating in the event of a sponsor-led debt-financed transaction. S&P could raise the rating if the company improves its operating performance ahead of S&P's expectations through continued strong top line performance and gross and EBITDA margin expansion of more than 80 basis points, leading to a decline in leverage to mid- to high-4x on a sustained basis. Positive free operating cash flows, application of asset sales proceeds to debt reduction, and a further decrease in financial sponsor ownership would also demonstrate the sustainability of an improved financial risk profile in the coming year. AV HOMES: Egan-Jones Hikes Sr. Unsec. Debt Ratings to B ------------------------------------------------------- Egan-Jones Ratings Company raised the senior unsecured ratings on debt issued by AV Homes Inc. to B from CCC+ on Aug. 24, 2016. AV Homes, Inc. engages in the homebuilding and community development businesses in Florida, Arizona, and the Carolinas markets. B&B REAL ESTATE: Hires Michael Baxter as Real Estate Agent ---------------------------------------------------------- B&B Real Estate General Partnership seeks authorization from the U.S. Bankruptcy Court for the Middle District of Pennsylvania to employ Michael Baxter & Associates Commercial Real Estate and Property Management as real estate agent. The Debtor requires Michael Baxter to: a. provide the Debtor-in-Possession with sales and rental advice with respect to the available rental space of Debtor; b. prepare the necessary paperwork and contracts, including listing contract and rental/lease agreement; c. show the property to potential tenants, marketing the property and otherwise promoting the property to the general public in order to procure a tenant for the property; Michael Baxter & Associates will be paid a commission of 7% of the monthly rental amount. Joseph C. Baxter, real estate agent of Michael Baxter & Associates Commercial Real Estate and Property Management, assured the Court that the firm does not represent any interest adverse to the Debtor and its estates. Michael Baxter may be reached at: Joseph C. Baxter Michael Baxter & Associates Commercial Real Estate and Property Management 1992 W. Main St. Stroudsburg, PA 18360 About Turnkey Products, LLC   B & B Real Estate General Partnership filed a Chapter 11 bankruptcy petition (Bankr. M.D.PA. Case No. 16-02183) on May 23, 2016. Hon. Robert N. Opel II presides over the case. Law Office of Philip W. Stock represents the Debtor as counsel. In its petition, the Debtor estimated $1.51 million in assets and $2.01 million in liabilities. The petition was signed by Robert C. Bishop, general partner. B5 INC: U.S. Trustee Unable to Appoint Committee ------------------------------------------------ The Office of the U.S. Trustee disclosed in a court filing that no official committee of unsecured creditors has been appointed in the Chapter 11 case of B5, Inc. About B5 Inc. B5, Inc. dba "Spectrum Builders", based in Mesa, Ariz., filed a Chapter 11 petition (Bankr. D. Ariz. Case No. 16-08760) on July 29, 2016. Hon. Madeleine C. Wanslee presides over the case. Thomas G. Luikens, Esq. serves as Chapter 11 bankruptcy counsel for the Debtor. In its petition, the Debtor estimated $0 to $50,000 in assets and $1 million to $10 million in liabilities. The petition was signed by Christopher J. Brown, president. BIOANALYTICAL SYSTEMS: Defaults on Huntington Bank Credit Line -------------------------------------------------------------- Bioanalytical Systems, Inc., filed its quarterly report on Form 10-Q, disclosing a net loss of $433,000 on $5.05 million of total revenue for the three months ended June 30, 2016, compared with a net income of $1.48 million on $6.15 million of total revenue for the same period in the prior year. The Company's balance sheet at June 30, 2016, showed $23.51 million in total assets, $14.04 million in total liabilities, and a stockholders' equity of $9.47 million. The Company is currently in default of its credit arrangements and Huntington Bank has reserved all rights with respect to its default. The Company's liquidity circumstances, including the potential inability to find replacement financing, raise substantial doubt about the Company's ability to continue as a going concern, and management has and will continue to take measures to mitigate that possibility. The Company is engaged in exploring initiatives to address solutions to its liquidity issues, which include the evaluation and pursuit of various sources of financing, including a sale and leaseback of the West Lafayette facility. Management is also undergoing a detailed review of all current account management and acquisition strategies and market programs and has introduced new initiatives designed to increase revenue around focused strength areas. A copy of the Form 10-Q is available at: https://is.gd/iL4SEA Bioanalytical Systems, Inc., is an international contract research organization based in West Lafayette, Indiana. The Company's clients and partners include pharmaceutical, biotechnology, academic and governmental organizations. BIOLARGO INC: Recurring Losses Raises Going Concern Doubt --------------------------------------------------------- Biolargo, Inc., filed its quarterly report on Form 10-Q, disclosing a net loss of $1.67 million on $38,986 of revenue for the three months ended June 30, 2016, compared with a net loss of $1.30 million on $15,611 of revenue for the same period in 2015. The Company's balance sheet at June 30, 2016, showed $1.02 million in total assets, $1.45 million in total liabilities, and a stockholders' deficit of $428,332. The Company had a net loss of $3,312,728 for the six-months ended June 30, 2016, and an accumulated stockholders' deficit of $87,266,592 as of June 30, 2016. The foregoing factors raise substantial doubt about the Company's ability to continue as a going concern. Ultimately, the Company's ability to continue as a going concern is dependent upon its ability to attract significant new sources of capital, attain a reasonable threshold of operating efficiencies and achieve profitable operations by licensing or otherwise commercializing products incorporating its technologies. As of June 30, 2016, the Company had $3,795,502 principal and interest amount outstanding due on convertible notes payable that are payable into shares of its common stock at its option on the June 1, 2018 maturity date. The Company also had $303,551 principal and interest amount outstanding due on letter of credit that are payable December 1, 2017. Additionally, the Company had $293,063 of accounts payable and accrued expenses A copy of the Form 10-Q is available at: https://is.gd/LZaFSp BioLargo, Inc., is a provider of platform technologies. The Company's products are used to eliminate contaminants that threaten the water, health and quality of life. Its technology has commercial applications within several industries. The Company focuses on four areas: water treatment; industrial odor control applications; commercial, household and personal care products (CHAPP), and advanced wound care. Its AOS Filter combines iodine, water filter materials and electrolysis within a water filter device. It generates oxidation potential in order to oxidize and breakdown or otherwise eliminate, soluble organic contaminant, which are found in contaminated water. BRYAN FORESEE: Disclosures Okayed; Plan Hearing on Oct. 12 ---------------------------------------------------------- The Hon. Ben Barry of the U.S. Bankruptcy Court for the Western District of Arkansas has approved Bryan D. Foresee and Tracie J. Foresee's disclosure statement dated July 19, 2016, describing the Debtors' Chapter 11 plan. A hearing to consider the confirmation of the Plan will be held at 9:00 a.m. on Oct. 12, 2016. Oct. 7, 2016, is fixed as the last day for returning ballots accepting or rejecting the Plan. Bryan D. Foresee and Tracie J. Foresee filed for Chapter 11 bankruptcy protection (Bankr. W.D. Ark. Case No. 16-71479) on June 21, 2016. Donald A. Brady, Jr., Esq., at AADR serves as the Debtor's bankruptcy counsel. C-N-T REDI MIX: Unsecureds To Recover 40% Under Plan ---------------------------------------------------- C-N-T Redi Mix, LLC, filed with the U.S. Bankruptcy Court for the Northern District of Texas a disclosure statement describing the Debtor's Chapter 11 plan. Under the Plan, allowed Class 7 Unsecured Claims specifically include any claims of Ibis Capital and, based upon the Debtor's schedules, will be approximately $525,000. The recovery to unsecured creditors is estimated to be 40%. The Class 7 creditors are impaired under this Plan. The unsecured creditors will share pro-rata in the unsecured creditor's pool. The Debtor will pay $3,500 per month for a period of 60 months into the unsecured creditors pool. The unsecured creditors will be paid quarterly on the last day of each calender quarter. Payments to the unsecured creditors will commence on the last day of the first full calender quarter after the Effective Date. The Debtor anticipates using the on-going business income of the Debtor to fund the Plan. All payments under the Plan will be made through the disbursing agent. A copy of the disclosure statement is available at: http://bankrupt.com/misc/txnb16-30274-43.pdf The Plan was filed by: Eric A. Liepins, Esq. Eric A. Liepins, P.C. 12770 Coit Road, Suite 1100 Dallas, Texas 75251 Phone: (972) 991-5591 Fax: (972) 991-5788 E-mail: eric@ealpc.com About C-N-T Redi Mix C-N-T Redi Mix, LLC, which sells concrete and concrete supplies in Dallas, Texas, sought protection under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Tex. Case No. 16-30274) on Jan. 20, 2016. At the time of the filing, the Debtor estimated assets of less than $50,000 and liabilities of $500,001 to $1 million. CALIFORNIA RESOURCES: S&P Raises CCR to CCC+, Outlook Negative -------------------------------------------------------------- S&P Global Ratings raised its corporate credit rating on Los Angeles-based exploration and production company California Resources Corp. to 'CCC+' from 'SD'. The outlook is negative. The issue-level and recovery ratings on the company's debt are unchanged. "We raised the corporate credit rating on CRC to reflect our reassessment of its credit profile following the tender for its senior unsecured notes," said S&P Global Ratings credit analyst Paul Harvey. "The rating reflects our expectation that debt leverage will remain at what we consider unsustainable levels over the next 24 months despite the net-debt reduction of about $625 million from the tender," he added. In addition, given its still high debt levels and continued weak crude oil prices, S&P views the cushion to financial maintenance covenants under its credit facility to be narrow. This largely offsets cost-cutting initiatives and CRC's ability to significantly reduce capital spending while limiting near-term production declines relative to the limited spending. The negative outlook reflects CRC's still high debt levels and leverage that S&P considers unsustainable combined with liquidity that is limited by financial maintenance covenants and the potential for negative borrowing base revisions if crude oil prices fail to sustain the recent upward trend. S&P could lower ratings if it reassessed CRC's liquidity as weak or S&P expected interest coverage to fall below 1x. Both scenarios are likely within the next 12 months if crude oil prices significantly fall below S&P's price assumptions. Additionally, S&P could lower ratings if CRC fails to proactively address potential covenant violations expected in 2018. S&P could return the rating outlook to stable if CRC can address the 2019 maturity of its first-lien first-out term loan and credit facility while maintaining adequate liquidity and improving financial measures. CARDIAC SCIENCE: Houlihan Can't Unilaterally Waive Consent ---------------------------------------------------------- Judge Robert D. Martin of the United States Bankruptcy Court for the Western District of Wisconsin held that Houlihan Lokey Capital, Inc., does not have the right to unilaterally waive the consent provision contained in the contract with Cardiac Science Corporation. Debtor CS Estate, Inc.'s predecessor, Cardiac Science Corporation, negotiated with Houlihan regarding Cardiac's engagement of Houlihan as Cardiac's investment banker. On August 25, 2015, the parties each signed the contract setting forth the terms of Houlihan's engagement. Two months later, after Cardiac was acquired by new owners, Cardiac's new president sent Houlihan a letter denying that a contract had ever existed, and, if it had, terminating it. Houlihan responded, defended the contract and claimed it was owed professional fees which had not been paid. Cardiac filed its bankruptcy petition four days later. CS Estate filed an objection to Houlihan's claim as creditor. After a preliminary hearing, the parties filed a stipulation requesting a ruling as a matter of law on three issues: (1) the choice of law to be applied in interpreting the contract; (2) whether the consent provision is a condition precedent to the formation and enforceability of the contract, such that the stipulated failure to obtain the executed consent rendered the contract null and void; and (3) whether Houlihan could unilaterally waive the consent provision. Judge Martin held that under either of the choice-of-law approaches, the court must consider what state has the most significant contacts with the contract. No argument has been put forth that Wisconsin does not have the most significant contacts. Judge Martin also found that the plain language of the contract imposes a condition precedent to the formation of the contract. The judge explained that the only purpose of the contract was to gain the performance of Houlihan, so conditioning all that performance on consent of DBS Bank Ltd., conditioned the existence of the contract on that consent. Lastly, because it appears that the consent provision is a condition precedent to formation, Judge Martin concluded that Houlihan does not have the right to unilaterally waive the condition. The reference to the bankruptcy court was also withdrawn in part. A full-text copy of Judge Martin's August 22, 2016 memorandum decision is available at https://is.gd/gCNOR1 from Leagle.com. CS Estate, Inc. is represented by: Frank W. DiCastri, Esq. Daryl L. Diesing, Esq. Lindsey M. Greenawald, Esq. HUSCH BLACKWELL LLP 33 East Main Street, Suite 300 Madison, WI 53701-1379 Tel: (608)255-4440 Fax: (608)258-7138 Email: frank.dicastri@huschblackwell.com daryl.diesing@huschblackwell.com lindsey.greenawald@huschblackwell.com -- and -- Craig E. Johnson, Esq. GARDEN CITY GROUP, LLC 1985 Marcus Ave. Lake Success, NY 11042 Tel: (800)327-3664 Email: craig.johnson@gardencitygroup.com -- and -- Timothy H. Posnanski, Esq. Iana Vladimirova, Esq. WHYTE HIRSCHBOECK DUDEK S.C. 555 East Wells Street, Suite 1900 Milwaukee, WI 53202-3819 Tel: (414)273-2100 Fax: (414)223-5000 Email: timothy.posnanski@huschblackwell.com iana.vladimirova@huschblackwell.com U.S. Trustee's Office, U.S. Trustee, is represented by: Mary R. Jensen, Esq. Debra L Schneider, Esq. OFFICE OF THE U.S. TRUSTEE 780 Regent Street, Suite 304 Madison, WI 53715 Tel: (608)264-5522 Fax: (608)264-5182 Official Committee of Unsecured Creditors of Cardiac Science Corporation, Creditor Committee, is represented by: Shelly A. DeRousse, Esq. Devon J. Eggert, Esq. Elizabeth L. Janczak, Esq. FREEBORN & PETERS LLP Email: sderousse@freeborn.com deggert@freeborn.com ejanczak@freeborn.com About Cardiac Science Headquartered in Waukesha, Wisconsin, Cardiac Science Corporation develops, manufactures and sells a variety of advanced diagnostic and therapeutic cardiology devices and systems, including automated external efibrillators, hospital defibrillators and related products and consumables. Cardiac Science filed Chapter 11 bankruptcy petition (Bankr. W.D. Wis. Case No. 15-13766) on Oct. 20, 2015. The petition was signed by Michael Kang as chief restructuring officer. Judge Robert D. Martin presides over the case. The Debtor disclosed total assets of $45,335,596 plus an undetermined amount and $104,715,678 plus an undetermined amount as of the Chapter 11 filing. Celestica Electronics (M) SDN BHD is the Debtor's largest unsecured creditor holding a claim of $2.5 million. CFS 915 LLC is the largest creditor of the Debtor, and its $87 million prepetition loan is secured by substantially all of the Debtor's assets. CFS has agreed to provide $10 million in postpetition financing for the Debtor. The Debtor has engaged Whyte Hirschboeck Dudek S.C. as bankruptcy counsel, Livingstone Partners LLC as investment banker and Garden City Group, LLC as notice and claims agent. In October 2015, the Office of the U.S. Trustee appointed seven creditors to the official committee of unsecured creditors. The committee is represented by Freeborn & Peters LLP. * * * The Debtor on Jan. 8, 2016 won approval from the Bankruptcy Court to sell substantially all of its assets to CFS 915 LLC. The sale closed on Jan. 25. As required by the parties Asset Purchase Agreement, the Debtor changed its name from "Cardiac Science Corporation" to "CS Estate, Inc." The Debtor filed a corresponding motion to amend the case caption to reflect the name change. CC SPORTS: Unsecureds To Recover at Least 10% Under Plan -------------------------------------------------------- CC Sports Injury LLC filed with the U.S. Bankruptcy Court for the Western District of Washington an amended disclosure statement describing the Debtor's Chapter 11 plan. Under the Plan, Class 1 General Unsecured Claims are impaired and holders of the claims will be paid quarterly no less than 10% of allowed amount of claim over five years commencing October 2016 or as soon as practicable thereafter following confirmation on or within 90 days after confirmation. The plan proponent believes there will be cash on hand on the effective date of the Plan to commence payments on the effective date of the Plan to pay at least in part the administrative claims that are entitled to be paid on that date. The plan payments will be made by direct payments by the Debtor, and the Debtor has both office staff assistance and an accounting to successfully implement and continue regular monthly payments under the Plan. The Plan Proponent must show that it will have enough cash flow over the life of the Plan to make the required plan payments. The plan proponent has provided projected financial information as an Exhibit to this Disclosure Statement. Payments and distributions under the Plan will be funded by the Debtor's usual and normal medical practice. The Disclosure Statement is available at: http://bankrupt.com/misc/wawb15-16111-48.pdf CC Sports Injury LLC is a Washington Limited Liability Company that was formed in February 2007 by its owner, Sean Salazar, a Chiropractic Physician. Dr. Salazar practices chiropractic medicine, and his patients include but are not limited to persons suffering from various conditions of the spine, back injuries, sports injuries, and car accident injuries. CC Sports filed for Chapter 11 bankruptcy protection (Bankr. W.D. Wash. Case No. 15-16111) on Oct. 13, 2015. Patrick H Brick, Esq., serves as the Debtor's counsel. CENTRAL GARDEN: Egan-Jones Hikes Sr. Unsec. Debt Ratings to BB- --------------------------------------------------------------- Egan-Jones Ratings Company raised the senior unsecured ratings on debt issued by Central Garden & Pet Co to BB- from B+ on August 22, 2016. Central Garden & Pet Company is an innovator, marketer and producer of quality branded products for the lawn & garden and pet supplies markets. CHRISTOPHER PAYNE: Employs Olson Nicoud & Gueck as Attorney ----------------------------------------------------------- Christopher Anthony Payne and Alyce Rygiel Payne seek permission from the U.S. Bankruptcy Court for the Eastern District of Texas to employ Olson Nicoud & Gueck, L.L.P., as their attorney of record. As attorney, Olson Nicoud will: a. advise Applicants with respect to their rights, powers, duties, and obligations as Debtors-in-Possession; b. prepare pleadings, applications, and conduct examinations incidental to administration; c. advise and represent Applicants in connection with all contested matters and adversary proceedings; d. review, classify, and negotiate or litigate claims of creditors in this case; e. advise and assist the Applicants in the formulation and presentation of a Disclosure Statement and Plan of Reorganization; and f. perform any and all other legal services incident and necessary. Professional fees will be billed at the hourly rates between $175 and $400. Attorneys or legal assistants will be billed at the rate commensurate with the experience, education and training of those persons. The Debtors state that Olson Nicoud has received no retainer from them. Dennis Olson, Esq., will be paid $400 per hour as approved by the Court. Dennis Olson, Esq., a partner at Olson Nicoud, assures the Court that does not hold or represent any interest adverse to the estate of the Debtor. The Firm can be reached at: Dennis Olson, Esq., OLSON NICOUD & GUECK, LLP 10440 N. Central Expwy., Suite 1100 Dallas, TX 75231 Telephone: (800) 708-7716 Facsimile: (214) 979-7301 E-mail: denniso@dallas-law.com Christopher Anthony Payne and Alyce Rygiel Payne filed Chapter 11 bankruptcy petition (Bankr. E.D. Tex. Case No. 16-41533) on August 30, 2016. Dennis Olson, Esq., at Olson Nicoud & Gueck, LLP, serves as the Debtors' counsel. CLAIRE'S STORES: Appoints SVP & Chief Financial Officer ------------------------------------------------------- Claire's Stores, Inc. has appointed Scott Huckins to serve as its executive vice president and chief financial officer, effective Oct. 5, 2016. Mr. Huckins, 49, succeeds Per J. Brodin as the Company's principal financial officer. Mr. Huckins served as vice president and corporate treasurer of Sears Holdings Corporation from June 2012 through September 2016. From February 2010 to May 2012, Mr. Huckins was vice president and treasurer of RSC Holdings, Inc. Mr. Huckins served as principal of Pioneer Advisors from September 2008 to January 2010. From February 2001 to September 2008, Mr. Huckins served in various roles at Koch Industries, Inc. and affiliated companies, including serving as president and chief executive officer of Koch Financial Products, LLC, chief financial officer of Koch's Capital Markets Division, corporate treasurer of Koch, and chief financial officer of a wholly-owned Koch Portfolio Company. Prior to Koch, Mr. Huckins served as vice president of Capital Markets and director of Strategic Planning at FINOVA Capital Corporation from June 1994 to January 2001 where he focused on asset securitizations. Mr. Huckins has a B.S. in Finance from Arizona State University and MBA from Northwestern University's J.L. Kellogg Graduate School of Management. In connection with his appointment as executive vice president and chief financial officer, Mr. Huckins and the Company entered in an offer letter dated as of Sept. 2, 2016. Pursuant to the terms of the Offer Letter, Mr. Huckins will receive an annual base salary of $500,000, a one-time sign on bonus of $50,000, and an annual target bonus of 60% of his base salary. The actual amount of the bonus will depend upon the achievement of certain annual performance objectives. With respect to the fiscal year ending January 28, 2017, Mr. Huckins will receive a minimum annual bonus of $100,000 if he is employed on Jan. 28, 2017. Mr. Huckins will be granted an option for 150,000 shares of the common stock of Claire's Inc., the corporate parent of the Company, which will vest at the rate of 25% per year subject to continued employment. Mr. Huckins will also be eligible to participate in Company's stock option grant program after a two-year waiting period. In the event Mr. Huckins' employment is terminated by the Company without cause or by him for good reason, Mr. Huckins would also be entitled to receive a severance payment equal to 12 months of his base salary, pro-rated annual incentive plan bonuses, and reimbursement for premiums for continued health benefits for the length of the severance period. Mr. Huckins is also subject to customary restrictive covenants, such as non-competition, non-solicitation and non-disclosure, during his employment and for the greater of the period during which Mr. Huckins receives severance payments or a period of 12 months following the termination of his employment. About Claire's Stores Claire's Stores, Inc. -- http://www.clairestores.com/-- operates as a specialty retailer of fashion accessories and jewelry for preteens and teenagers, as well as for young adults in North America and internationally. It offers jewelry products that comprise costume jewelry, earrings, and ear piercing services; and accessories, including fashion accessories, hair ornaments, handbags, and novelty items. Based in Pembroke Pines, Florida, Claire's Stores operates under two brands: Claire's(R), which operates worldwide and Icing(R), which operates only in North America. As of Jan. 31, 2009, Claire's Stores, Inc., operated 2,969 stores in North America and Europe. Claire's Stores also operates through its subsidiary, Claire's Nippon, Co., Ltd., 213 stores in Japan as a 50:50 joint venture with AEON, Co., Ltd. The Company also franchises 198 stores in the Middle East, Turkey, Russia, South Africa, Poland and Guatemala. As of April 30, 2016, Claire's Stores had $2.27 billion in total assets, $2.87 billion in total liabilities and a stockholders' deficit of $606 million. * * * The TCR reported on April 11, 2016, that Moody's Investors Service downgraded Claire's Stores, Inc. Corporate Family Rating (CFR) and Probability of Default Rating to Caa3 and Caa3-PD, respectively. "[The] downgrades reflect our view that there is an acute likelihood of a debt restructuring ahead of the June 2017 maturity of Claire's subordinated notes due to continuing erosion of liquidity and weak operating performance," stated Moody's Vice President Charlie O'Shea. As reported by the TCR on Aug. 22, 2016, S&P Global Ratings lowered its corporate credit rating on Florida-based Claire's Stores Inc. to 'CC' from 'CCC-' and placed it on CreditWatch with negative implications. CLEAR CREEK RETIREMENT: To Sell Real Property to NDA Under Plan --------------------------------------------------------------- Clear Creek Retirement Plan II, LLC, filed with the U.S. Bankruptcy Court for the Western District of Washington a second disclosure statement describing the Debtor's Chapter 11 plan. The hearing to consider the adequacy of the Disclosure Statement will be held Sept. 14, 2016, at 9:00 a.m. Under the Plan, the Debtor intends to sell substantially all real property of the estate to NDA, LLC, a Washington limited liability company, free and clear of all liens and interests. In addition to the sale free and clear, the Plan contemplates transferring any of the Debtor's remaining unsold assets to a liquidating trust. The trust would then attempt to monetize the assets and from the proceeds make distributions to, among others, creditors who hold allowed unsecured claims. Holders of Class 3 General Unsecured Claims include, among others, vendors with trade debt and lienholders whose collateral is worth too little to secure their claim. Subject to the availability of distributable funds, unsecured claimants would be paid by a liquidating trust on an annual basis based on their pro rata share of the trust property after secured claims have been paid. This class is impaired and may vote on the Plan. The Second Disclosure Statement is available at: http://bankrupt.com/misc/wawb16-40547_122.pdf About Clear Creek Rusty Fields formed Washington limited liability company Clear Creek Retirement Plan II LLC on Nov. 8, 2011. The sole purpose was to acquire real property in Williston, North Dakota and to hold it for resale or to develop it for residential housing. This development is known commonly as the "Ironwood" subdivision and includes thirty-two single-acre residential building lots. The Debtor sought protection under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the Western District of Washington (Tacoma) (Bankr. W.D. Wash., Case No. 16-40547) on Feb. 12, 2016. The petition was signed by Rusty D. Fields, manager. The Debtor is represented by John R. Rizzardi, Esq., at Cairncross & Hempelmann, P.S. The case is assigned to Judge Brian D. Lynch. The Debtor disclosed total assets of $9.88 million and total debts of $8.56 million. COMMUNITY HOME: Ch. 11 Trustee Granted Over $19K Interim Payment ---------------------------------------------------------------- Judge Edward Ellington of the United States Bankruptcy Court for the Southern District of Mississippi granted Kristina M. Johnson, trustee of Community Home Financial Services, Inc., an interim compensation in the amount of $19,750. The Trustee filed on August 21, 2015, a supplement to her first application for interim compensation as Community Home's Chapter 11 trustee, seeking the statutory maximum compensation of $19,750.50. The supplement is for the time period of January 1, 2015, through June 30, 2015. Edwards Family Partnership, LP, and Beher Holdings Trust's Limited Objection to the Supplement to Trustee's First Application for Interim Compensation as the Chapter 11 Trustee of Community Home Financial Services, Inc., was filed on September 11, 2015. In its Objection, Edwards does not object to the Trustee's statutory compensation per se. Rather, Edwards asserts that the "[a]ny compensation should apply against all trustee work regardless of whether the Trustee seeks compensation for her or her law firm as attorneys for the trustee for trustee work." Further, Edwards requests "that the Court deny the application to the extent it seeks to limit the pending objection of [Edwards] to Jones Walker's fee application. To the extent the application related to trustee work only, [Edwards does] not object; however, they do object to any payment of those fees at this time for the reasons stated herein." Judge Ellington found that the trustee is entitled to the requested interim award of compensation. Since Edwards is not objecting to the stated disbursements or the Trustee's calcuations, the Court finds that the Trustee is entitled to an interim award of compensation. "Interim fee awards are not final determinations intended to put a matter to rest. Rather, they are interlocutory and reviewable, and are intended only to provide some interim relief from the economic hardships of subsidizing litigation," the judge said, citing Continental Ill. Nat'l Bank & Trust Co. of Chicago v. Charles N. Wooten, LTD. (In re Evangeline Refining Co.), 890 F.2d 1312, 1322 (5th Cir. 1989). Consequently, the Court finds that the Trustee should be granted interim compensation in the amount of $19,750.50. To the extent the Court has not addressed any of the parties' other arguments or positions, it has considered them and determined that they would not alter the result. A full-text copy of Judge Ellington's September 9, 2016 order is available at http://bankrupt.com/misc/mssb12-01703-1467.pdf About Community Home Financial Community Home Financial Services, Inc., filed a Chapter 11 petition (Bankr. S.D. Miss. Case No. 12-01703) on May 23, 2012. The petition was signed by William D. Dickson, president. Community Home Financial is a specialty finance company located in Jackson, Mississippi, providing contractors with financing for their customers. CHFS operates from one central location providing financing through its dealer network throughout 25 states, Alabama, Delaware, and Tennessee. The Debtor scheduled $44.9 million in total assets and $30.3 million in total liabilities. Judge Edward Ellington presides over the case. The Debtor was first represented by Roy H. Liddell, Esq., and Jonathan Bissette, Esq., at Wells, Marble, & Hurst, PPLC as Chapter 11 counsel. Wells Marble was terminated Nov. 13, 2013. The Debtor is now being represented by Derek A. Henderson, Esq., in Jackson, Miss. In 2013, the Debtor sought to employ David Mullin, Esq., at Mullin Hoard & Brown LLP, as special counsel. On Jan. 9, 2014, Kristina M. Johnson was appointed as Chapter 11 Trustee for the Debtor. Jones Walker LLP serves as counsel to the Chapter 11 trustee, while Stephen Smith, C.P.A., acts as accountant. COMMUNITY HOME: Ch. 11 Trustee Granted Over $68K Interim Payment ---------------------------------------------------------------- Judge Edward Ellington of the United States Bankruptcy Court for the Southern District of Mississippi granted the Trustee an interim compensation in the amount of $68,905.75. Kristina M. Johnson, trustee of Community Home Financial Services, Inc., filed on February 20, 2015 her first application for interim compensation as Community Home's Chapter 11 trustee, seeking the statutory maximum compensation of $68,905.75. The first trustee application is for the time period of January 16, 2014, through December 31, 2014. Edwards Family Partnership, LP, and Beher Holdings Trust's Response to the Trustee's Application for Interim Compensation as the Chapter 11 Trustee of Community Home Financial Services, Inc., was filed on March 16, 2015. In its Objection, Edwards does not object to the Trustee's statutory compensation per se. Rather, Edwards asserts that the "[a]ny compensation awarded as a result of this application should be compensation for all trustee work performed, regardless of whether the Trustee performed the work herself or delegated it to others -- in this case paralegals and lawyers in her law firm -- to perform." Further, Edwards requests "that the Court deny the application to the extent it seeks to limit the pending objection of [Edwards] to Jones Walker's fee application. To the extent the application seeks compensation for all trustee work performed (regardless of who performed it), [Edwards does] not object." Since Edwards is not objecting to the stated disbursements or the Trustee's calcuations, the Court finds that the Trustee is entitled to an interim award of compensation. "Interim fee awards are not final determinations intended to put a matter to rest. Rather, they are interlocutory and reviewable, and are intended only to provide some interim relief from the economic hardships of subsidizing litigation," the judge said, citing Continental Ill. Nat'l Bank & Trust Co. of Chicago v. Charles N. Wooten, LTD. (In re Evangeline Refining Co.), 890 F.2d 1312, 1322 (5th Cir. 1989). Consequently, the Court finds that the Trustee should be granted interim compensation in the amount of $68,905.75. A full-text copy of Judge Ellington's September 9, 2016 order is available at http://bankrupt.com/misc/mssb12-01703-1465.pdf About Community Home Financial Community Home Financial Services, Inc., filed a Chapter 11 petition (Bankr. S.D. Miss. Case No. 12-01703) on May 23, 2012. The petition was signed by William D. Dickson, president. Community Home Financial is a specialty finance company located in Jackson, Mississippi, providing contractors with financing for their customers. CHFS operates from one central location providing financing through its dealer network throughout 25 states, Alabama, Delaware, and Tennessee. The Debtor scheduled $44.9 million in total assets and $30.3 million in total liabilities. Judge Edward Ellington presides over the case. The Debtor was first represented by Roy H. Liddell, Esq., and Jonathan Bissette, Esq., at Wells, Marble, & Hurst, PPLC as Chapter 11 counsel. Wells Marble was terminated Nov. 13, 2013. The Debtor is now being represented by Derek A. Henderson, Esq., in Jackson, Miss. In 2013, the Debtor sought to employ David Mullin, Esq., at Mullin Hoard & Brown LLP, as special counsel. On Jan. 9, 2014, Kristina M. Johnson was appointed as Chapter 11 Trustee for the Debtor. Jones Walker LLP serves as counsel to the Chapter 11 trustee, while Stephen Smith, C.P.A., acts as accountant. COMPANION DX: Creditors' Panel Hires Okin Adams as Counsel ---------------------------------------------------------- The Official Committee of Unsecured Creditors of Companion DX Reference Lab, LLC, seeks authorization from the U.S. Bankruptcy Court for the Southern District of Texas to retain Okin Adams LLP as counsel to the Committee. The Committee requires Okin Adams to: a. advise the Committee with respect to its rights, powers, and duties in the bankruptcy case; b. assist and advise the Committee in its consultations with the Debtor relative to the administration of the case; c. assist the Committee in analyzing the claims of the Debtor's creditors and in negotiating with such creditors; d. assist the Committee's investigation of the acts, conduct, assets, liabilities, and financial condition of the Debtor and of the operation of Debtor's business; e. advise and represent the Committee in connection with administrative matters arising in the case, including the obtaining of credit, the sale of assets, and the rejection or assumption of executory contracts and unexpired leases; f. assist the Committee in its analysis of, and negotiation with, the Debtor, or any third party concerning matters related to the terms of a chapter 11 plan for the Debtor; g. assist and advise the Committee with respect to its communications with the general creditor body regarding significant matters in the case; h. review, analyze and respond as necessary to all applications, motions, orders, statements of operations and schedules filed with the Court, and advise the Committee as to their propriety; i. assist the Committee in evaluating claims and causes of action, against the Debtor's secured lenders or other parties; j. assist the Committee in preparing pleadings and applications as may be necessary in furtherance of the Committee's interests and objectives; and k. represent the Committee at all hearings and other proceedings, and perform such other legal services as may be required and are deemed to be in the interests of the Committee in accordance with the Committee's powers and duties as set forth in the Bankruptcy Code. Okin Adams will be paid at these hourly rates: Christopher Adams, Partner $400 David Curry, Jr., Of Counsel $320 John Thomas Oldham, Associate $275 Legal Assistants $105-$130 Okin Adams will also be reimbursed for reasonable out-of-pocket expenses incurred. Christopher Adams, partner in the law firm of Okin Adams LLP, assured the Court that the firm (i) does not represent any other entity in connection with the case, (ii) is "disinterested" as that term is defined in section 101 of the Bankruptcy Code, and (iii) does not represent or hold any interest adverse to the interest of the Debtor's estate with respect to the matters for which it is to be employed. Okin Adams can be reached at: Christopher Adams, Esq. David L. Curry, Jr., Esq. OKIN ADAMS LLP 1113 Vine St., Suite 201 Houston, TX 77002 Tel: (713) 228-4100 Fax: (888) 865-2118 Email: cadams@okinadams.com dcurry@okinadams.com About Companion DX Reference Lab, LLC Companion DX Reference Lab, LLC, filed a Chapter 11 bankruptcy petition (Bankr. S.D. Tex. Case No. 16-33427) on July 5, 2016. The Hon. Marvin Isgur presides over the case. Pendergraft & Simon, LLP, represents the Debtor as counsel. In its petition, the Debtor estimated $1 million to $10 million in assets and $10 million to $50 million in liabilities. The petition was signed by Michael Stewart, chief executive officer. On July 28, 2016, the United States Trustee for the Southern District of Texas filed its Amended Notice of Appointment of Committee of Unsecured Creditors. The Committee hired Sheppard Mullin Richter & Hampton LLP to serve as bankruptcy counsel, and Okin Adams LLP to act as counsel. COMPANION DX: Creditors' Panel Hires Sheppard Mullin as Counsel --------------------------------------------------------------- The Official Committee of Unsecured Creditors of Companion DX Reference Lab, LLC, seeks authorization from the U.S. Bankruptcy Court for the Southern District of Texas to retain Sheppard Mullin Richter & Hampton LLP as bankruptcy counsel to the Committee. The Committee requires Sheppard to: a. advise the Committee regarding bankruptcy law; b. advise with respect to the Committee's powers and duties in the Bankruptcy Case; c. attend Committee meetings; d. review financial information furnished by the Debtor to the Committee and investigate various potential claims; e. assist in the investigation of the acts, conduct, assets, liabilities and financial condition of the Debtor; f. provide aid and assistance in monitoring the progress of the Debtor and administration of the Debtor's Bankruptcy Case; g. provide representation in all negotiations and proceedings involving the Debtor, the Committee, and other parties-in- interest; h. represent the Committee in any proceedings or hearings before this Court; i. conduct examinations of witnesses, claimants, or adverse parties and prepare and assist in the preparation of reports, accounts, and pleadings related to the Bankruptcy Case; j. advise the Committee concerning the requirements of the Bankruptcy Code and applicable rules as they may affect the Committee in the Bankruptcy Case and any related adversary proceeding; k. assist the Committee and working with the Debtor with regard to the restructuring or liquidation of the Debtor or auction, sale or other transaction with respect to the Debtor's assets; l. advise the Committee and working with the Debtor with regard to the formulation, negotiation, confirmation, and implementation of any chapter 11 plan; m. advise and assist the Committee with respect to any matters involving the U.S. Trustee and the Debtor; n. make court appearances on behalf of the Committee; and o. represent the Committee in all other legal aspects of the Bankruptcy Case and take any other action and perform any other services as the Committee may require in connection with the Bankruptcy Case. Sheppard will be paid at these hourly rates: Ori Katz, Partner $646 Robert K. Sahyan, Senior Associate $535 Matt R. Klinger, Junior Associate $345 Sheppard will be paid a retainer in the amount of $35,000. Sheppard will also be reimbursed for reasonable out-of-pocket expenses incurred. Ori Katz, partner in the law firm of Sheppard Mullin Richter & Hampton LLP, assured the Court that the firm (i) does not represent any other entity in connection with the case, (ii) is "disinterested" as that term is defined in section 101 of the Bankruptcy Code, and (iii) does not represent or hold any interest adverse to the interest of the Debtor's estate with respect to the matters for which it is to be employed. Sheppard can be reached at: Ori Katz, Esq. Robert K. Sahyan, Esq. Matt R. Klinger, Esq. SHEPPARD MULLIN RICHTER & HAMPTON LLP Four Embarcadero Center, 17th Floor San Francisco, CA 94111 Tel: (415) 434-9100 Fax: (415) 434-3947 Email: okatz@sheppardmullin.com rsahyan@sheppardmullin.com mklinger@sheppardmullin.com About Companion DX Reference Lab, LLC Companion DX Reference Lab, LLC, filed a Chapter 11 bankruptcy petition (Bankr. S.D. Tex. Case No. 16-33427) on July 5, 2016. The Hon. Marvin Isgur presides over the case. Pendergraft & Simon, LLP, represents the Debtor as counsel. In its petition, the Debtor estimated $1 million to $10 million in assets and $10 million to $50 million in liabilities. The petition was signed by Michael Stewart, chief executive officer. On July 28, 2016 the United States Trustee for the Southern District of Texas filed its Amended Notice of Appointment of Committee of Unsecured Creditors. The Committee hired Sheppard Mullin Richter & Hampton LLP to serve as bankruptcy counsel, and Okin Adams LLP to act as counsel. CONSTELLATION ENTERPRISES: Committee Reaches Unsec. Claims Deal --------------------------------------------------------------- BankruptcyData.com reported that Constellation Enterprises and its official committee of unsecured creditors filed with the U.S. Bankruptcy Court a motion for an order approving a settlement by and among the Debtors, the creditors' committee, the purchaser and the ad hoc noteholder group. The motion explains, "The Settlement before the Court marks a watershed moment in these cases. Since the Petition Date, nearly four (4) months ago, the Debtors have used their best efforts to broker a settlement between the key constituents in these cases. As the Settlement demonstrates, the efforts of the Settlement Proponents have paid off. The proposed Settlement provides the holders of general unsecured claims - a constituency which was indisputably out of the money when these cases began - with a pro rata share of $1.25 million, and the potential of additional recoveries based on the outcome of the potential prosecution of certain transferred claims and causes of action. Without the Settlement, this result would likely be unobtainable. The Settlement also helps clear a path to a final disposition of these cases, as it eliminated potential and actual objections to the Sale Motion, and resolves the Creditors' Committee's objections to the DIP Motion. Absent the Settlement, it is likely that the Parties would have continued to litigate these matters potentially to the detriment of the Debtors and their estates and creditors." The Court scheduled an October 6, 2016 hearing on the motion, with objections due by Sept. 22, 2016, according to the report. About Constellation Enterprises Constellation Enterprises LLC, through its subsidiaries, manufactures custom engineered metal components for various end markets such as rail transportation, oil and gas, general industrial, nuclear, aerospace, and small gas engine markets. The company was incorporated in 1996 and is based in Caldwell, Texas. Constellation Enterprises LLC (Bankr. D. Del. Case No. 16-11213) and its affiliates Columbus Holdings, Inc. (Bankr. D. Del. Case No. 16-11214), Columbus Steel Castings Company (Bankr. D. Del. Case No. 16-11215), Eclipse Manufacturing Co. (Bankr. D. Del. Case No. 16-11219), JFC Holding Corporation (Bankr. D. Del. Case No. 16-11221), Metal Technology Solutions, Inc. (Bankr. D. Del. Case No. 16-11218), Steel Forming, Inc. (Bankr. D. Del. Case No. 16-11220), The Jorgensen Forge Corporation (Bankr. D. Del. Case No. 16-11222), Zero Corporation (Bankr. D. Del. Case No. 16-11216), and Zero Manufacturing, Inc. (Bankr. D. Del. Case No. 16-11217) filed for Chapter 11 bankruptcy protection on May 16, 2016. The petitions were signed by William Lowry, chief financial officer. The Debtors estimated their assets at between $1 million and $10 million and their debts at between $100 million and $500 million. Adam C. Rogoff, Esq., and Joseph A. Shifer, Esq., at Kramer Levin Naftalis & Frankel LLP serve as the Debtors' bankruptcy counsel. Daniel J. DeFranceschi, Esq., Zachary I. Shapiro, Esq., Rachel L. Biblo, Esq., and Joseph C. Barsalona II, Esq., at Richards, Layton & Finger, P.A., serve as the Debtors' co-counsel. Imperial Capital, LLC, is the Debtors' financial advisor. Conway Mackenzie Management Services LLC is the Debtors' crisis management & restructuring services provider. Epiq Bankruptcy Solutions, LLC, is the Debtors' claims and noticing agent. The Official Committee of Unsecured Creditors is represented by Christopher M. Samis, Esq., at Whiteford, Taylor & Preston LLC; and Norman N. Kinel, Esq., and Nava Hazan, Esq., at Squire Patton Boggs (US) LLP. CORNERSTONE DENTISTRY: Hires Paul Reece Marr as Attorney -------------------------------------------------------- Cornerstone Dentistry, PC seeks authorization from the U.S. Bankruptcy Court for the Northern District of Georgia to employ Paul Reece Marr, P.C. as bankruptcy attorneys. The Debtor requires the law firm to: (a) provide the Debtor with legal advice regarding its powers and duties as debtor in possession in the continued operation and management of its affairs; (b) prepare on behalf of the Debtor the necessary applications, statements, schedules, lists, answers, orders and other legal papers pursuant to the Bankruptcy Code; and (c) perform all other legal services in the Chapter 11 bankruptcy proceeding for the Debtor which may be reasonably necessary. The law firm will be paid at these hourly rates: Paul Reece Marr $325 Paralegal $125 Clerical $50 The law firm will also be reimbursed for reasonable out-of-pocket expenses incurred. The Debtor desires to employ the Law Firm under a general retainer in the amount of $10,000. The Debtor will also pay the $1,717 petition filing fee. Paul Reece Marr assured the Court that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtor and its estate. The law firm can be reached at: Paul Reece Marr, Esq. PAUL REECE MARR, P.C. 300 Galleria Parkway NW, Suite 960 Atlanta, GA 30339 Tel: (770) 984-2255 E-mail: paul@paulmarr.com About Cornerstone Dentistry, PC Cornerstone Dentistry, PC filed a Chapter 11 petition (Bankr. N.D. Ga. Case No. 16-64635-jrs), on August 22, 2016. The Debtor's counsel is Paul Reece Marr, Esq. at Paul Reece Marr, P.C. The Debtor operates an in-patient dental practice located at leased premises having an address of 2463 Hamilton Mill Parkway, Suite 240, Dacula, Georgia 30019. At one point the Debtor had a second location in Norcross, Georgia, but that location proved to be unprofitable and the Debtor closed the Norcross location January 2015. Dr. Edward McDonald, DDS, a dentist licensed in the State of Georgia, is the sole owner and officer of the Debtor. The Debtor has six employees including Dr. McDonald. Dr. McDonald's wife, Neva McDonald, is a bookkeeper and administrative assistant. No other insiders are on the payroll. No creditors committee has been appointed. CRN INC: Plan Confirmation Hearing on Oct. 13 --------------------------------------------- Judge H. Christopher Mott of the U.S. Bankruptcy Court for the Western District of Texas on Sept. 6, 2016, conditionally approved the disclosure statement explaining the Amended Plan of Reorganization of CRN, Inc., d/b/a Alpha Home Nurses, and scheduled Oct. 13, 2016, at 10:00 a.m. (MT) as the hearing for final approval of the Disclosure Statement combined with the hearing on confirmation of the Plan and any objections. October 7, 2016 at 5:00 p.m. (MT) is fixed as the last day for filing and serving objections to final approval of the Disclosure Statement and the last day for submitting ballots for acceptance or rejection of the Plan. The last day for filing objections to confirmation of the Plan is October 7. By October 11, 2016, counsel for the Debtor must file with the Court: (a) a ballot summary in the form required by Local Bankruptcy Rule 3018(b) with a copy of the ballots; and (b) a memorandum of legal authorities addressing any objections filed to the Plan. In accordance with 11 U.S.C. Section 1121(e)(3), the Court extended the deadline imposed under Section 1129(e) for the Debtor to obtain confirmation of a plan until October 14, 2016. About CRN Inc. CRN, dba Alpha Home Nurses, is a home health provider services company, which has been operating in the El Paso area since April 5, 2002. The Debtor sought protection under Chapter 11 of the Bankruptcy Code (Bankr. W. D. Texas Case No. 16-30001) on January 2, 2016. The Debtor represented by Carlos A. Miranda III, Esq., and Gabe Perez, Esq., at Miranda & Maldonado, P.C., in El Paso, Texas. CSC HOLDINGS: S&P Assigns 'BB-' Rating on $1.9BB Sr. Notes ---------------------------------------------------------- S&P Global Ratings assigned its 'BB-' issue-level rating and '1' recovery rating to Bethpage, N.Y.-based CSC Holdings LLC's proposed $1.9 billion senior guaranteed notes maturing in April 2027. The '1' recovery rating indicates S&P's expectation for very high (90%-100%) recovery for noteholders in the event of a payment default. The notes are unsecured obligations, but are guaranteed by restricted subsidiaries of CSC Holdings and will rank ahead of existing senior unsecured notes at the issuer. S&P expects net proceeds from the note issuance to refinance the remaining balance on the company's $3.8 billion term loan B due in 2022, which the company will partially refinance with a new $1.9 billion term loan B due in 2024. The 'BB-' issue-level rating and '1' recovery rating on the new $1.9 billion term loan B are in line with the existing senior secured credit facility. The 'B' corporate credit rating and stable outlook are unchanged. RECOVERY ANALYSIS Key analytical factors S&P's default scenario contemplates a default resulting from a revenue decline in its cable operations as a result of accelerated pricing pressure and competition, primarily from Verizon Communications Inc.'s FiOS triple-play service. Increased price-based competition in the company's existing markets, lower revenues per customer, and a reduced subscriber base would result in a decline in simulated EBITDA to a level below the minimum required to service CSC's fixed charges (principally interest expense, capital expenditures, and scheduled debt amortization). Other default assumptions include an 85% draw on the revolving credit facility and an increase in borrowing costs because of increases in LIBOR and borrowing rates that are the result of credit deterioration and covenant violations through the year of default; all debt amounts include six months of prepetition interest. S&P believes that if CSC defaulted, it would retain a viable business model, fueled by continued demand for cable TV, data, and voice services, in addition to the strong demographics of its service territory and well-clustered operations. Therefore, S&P believes that lenders would achieve the greatest recovery value through a reorganization of the borrower rather than through liquidation. S&P has valued the company at a 6x multiple of EBITDA. The 6x valuation multiple is on the lower end of the typical 6x-7x range S&P generally ascribes to incumbent cable operators given intense competition from Verizon FiOS. Simulated default assumptions -- Simulated year of default: 2019 -- EBITDA at emergence: $1.5 billion -- EBITDA multiple: 6x Simplified waterfall -- Net enterprise value (after 7% in administrative costs): $8.45 billion -- Priority claims: $44 million -- Collateral value available to secured creditors: $8.41 billion -- Secured first-lien claims: $3.61 billion -- Recovery expectations: (90%-100%) -- Guaranteed bonds: $3 billion -- Recovery expectations: (90%-100%) -- Value available to unsecured creditors: $1.8 billion -- Unsecured claims: $7.18 billion -- Recovery expectations: (10%-30%; upper half of the range) -- Subordinated claims: $2.9 billion -- Recovery expectations: 0%-10% Ratings List CSC Holdings LLC Corporate Credit Rating B/Stable/-- New Rating CSC Holdings LLC Senior Unsecured $1.9 bil sr guaranteed notes due 2027 BB- Recovery Rating 1 CVR NITROGEN: S&P Affirms Then Withdraws 'B+' CCR ------------------------------------------------- S&P Global Ratings affirmed its 'B+' corporate credit and issue-level ratings on master limited partnership CVR Nitrogen, LP (f/k/a Rentech Nitrogen Partners, LP). Subsequently, S&P withdrew all ratings on the partnership at the issuer's request. CVR Partners LP acquired the partnership on April 1, 2016. DCP MIDSTREAM: Fitch Affirms 'BB+' Long-Term Issuer Default Rating ------------------------------------------------------------------ Fitch Ratings has affirmed its ratings on DCP Midstream, LLC (DCP) and DCP Midstream Partners, LP (DPM) as follows: DCP Midstream LLC -- Long-term Issuer Default Rating (IDR) at 'BB+'; -- Senior secured rating at 'BB+/RR4'; -- Senior unsecured rating at 'BB+/RR4'; -- Junior subordinated notes at 'BB-/RR6'. DCP Midstream Partners, LP -- Long-term IDR at 'BBB-'; -- Senior unsecured rating at 'BBB-'; -- Short-term IDR and commercial paper rating at 'F3'. DCP's Rating Outlook is Stable. DPM's Rating Outlook has been revised to Stable from Negative. The rating affirmations reflect the size and scale of DCP and DPM, their supportive sponsors, and improvements in liquidity, cash flow profile, and operating margin at the DCP enterprise. DCP and DPM have focused on driving down their breakeven costs and increasing their exposure to fixed fee revenue sources. The affirmation reflects the structural subordination of DCP's debt to DPM while recognizing that cost improvements and a move towards more fixed fee revenue sources at DCP are expected to help bolster its cash flow levels. Concerns include volumetric risks, hedge roll off, and uncertainty around growth prospects and ultimate organizational structure. The Stable Outlook for DPM reflects Fitch's continued expectation for volume weakness in select regions offset in part by DPM's fixed fee and hedged positions for the balance of 2016 and for 2017 and limited expected capital needs. DPM's near term gross margin profile remains fixed fee and hedged keeping near term commodity price exposure low with 90% of gross margin either fee-based or hedged for 2016 (approximately 75% fixed fee/approximately 15% hedged) and roughly 82% of gross margin fee-based or hedged for 2017 (approximately 80% fixed fee/approximately 2% hedged). This provides some near-term comfort around the stability of DPM's earnings and cash flows even in this lower commodity price environment at least through the end of 2017 though the roll-off of hedges will introduce some increased commodity price exposure in 2018 and beyond. KEY RATING DRIVERS Scale & Scope of Operations: DCP is the largest independent natural gas processor in the United States, and it has a robust presence in all of the key production regions within the country. DCP owns or operates gathering & processing systems in Permian, Mid-Continent, East Texas-, South Texas, Central Texas, as well as the Piceance and Barnett Shale basins. The size and breadth of DCP's operations allow it to offer its customers end-to-end gathering, processing, storage and transportation solutions giving DCP a competitive advantage within the regions where they have significant scale. Additionally, the company's large asset base provides a platform for growth opportunities across its footprint. DCP has a particular focus on the DJ and the Permian Basin, areas in need of gathering and processing infrastructure as production in the liquids rich regions of these plays continues to increase. Much of DCP's asset portfolio are 'must-run' type assets as long as oil and gas is flowing from the wells and basin they access, DCP will process the gas. Supportive Ownership: DCP's owners Spectra Energy (SE; Fitch rates SE's operating subsidiary Spectra Energy Capital LT-IDR: 'BBB'/Rating Watch Positive) and Phillips 66, Inc. (PSX; not rated) have in the past exhibited a willingness to inject capital, forgo dividends, and generally provide capital support most recently with a $3 billion cash and asset equity injection in 2015. The $3 billion equity contribution is illustrative of the value and support that SE and PSX see in and provide to DCP, and by extension DPM. Fitch expects DCP's owners to continue to provide similar support to DCP going forward including continuing to forego dividends while DCP remains under financial pressures stemming from low commodity prices. Should SE and PSX no longer express or possess the willingness and ability to support DCP in times of need Fitch would likely take a negative ratings action. On a purely standalone basis without parental support, DCP's IDR would likely be lower rated. Modest Leverage at DPM: Fitch expects DPM leverage is expected to range between 4.0x to 4.5x through 2019 with distribution coverage at 1.0x. Fitch would likely take a negative ratings action should DPM fail to maintain leverage below 4.5x on a sustained basis, distribution coverage above 1.0x, and a fixed-fee or hedged gross margin profile of greater than 70%. Cost-of-capital, capital market access, uncertainty around growth and ultimate structure, and the ability and willingness of DPM to fund any capital needs with a focus on keeping leverage at reasonable levels remain additional concerns for DPM. Fitch expects DCP's credit metrics on both a consolidated and standalone basis to be weak in 2016 but improve in outer years as it benefits from its cost improvements, increased fee based revenue and a rising commodity price deck. Fitch expects standalone leverage at DCP as defined as DCP Debt(inclusive of 50% equity credit)/DCP adj. EBITDA (DCP non-consolidated EBITDA plus distributions from DPM and distributions in excess of equity in earnings) is expected by Fitch to improve to below 4.5x in 2018 and beyond. Fitch's current commodity price base case assumes an improvement in natural gas, oil and NGL prices in 2016, 2017 and long term. Improved Cash Flow Profile: DCP has taken several active measures to improve its operations and cash flow profile. DCP and DPM have been actively realigning contracts with their counterparties in order to shift to a greater percentage of fee based contracts. Fitch expects DPM to have over 80% of its gross margin fixed fee or hedged for the next few years and DCP has improved its fixed fee or hedged margin to approximately 65% fee or hedged for 2017 which should help stabilize cash flows for both entities. DCP has begun entering into hedges a new practice for the entity which will help DCP level cash flow stability. Additionally, DCP and DPM have been driving a significant amount of operating costs out of the business. As a result, the enterprises breakeven costs have declined significantly to well below $0.35 per gallon for NGLs, representing a significant decline from prior pre-2015 levels of over $0.60 per gallon. Volumetric Risk: Fitch is concerned with volumetric risks across DCP's and DPM's asset base. While volumes in the DJ and Permian Basins are expected to continue hold up well, elsewhere Fitch expects volume declines, particularly in the Eagle Ford region. Near-term volume declines could weigh on profitability across DCP and DPM, but Fitch expects a rising price deck should help moderate volumetric risks in 2018 and beyond as commodity prices improve and production begins to return. Hedges Rolling Off: DPM's hedges continue to roll off, negatively impacting profitability going forward. DPM has historically balanced its open commodity price exposure by hedging its NGL, crude oil and natural gas exposure on a 12 to 18 month basis. As prices have fallen and remained low the ability for DPM to enter into favourable hedges also declined. To offset hedge roll off DPM has been steadily increasing its fee based margin profile in part by incorporating NGL pipeline assets, which are largely fee based but subject to some volume risks. Fitch expects DPM's fee based profile to remain above 80% in 2017. KEY ASSUMPTIONS Fitch's key assumptions within our rating case for the issuer include: -- Base case commodity prices are consistent with Fitch's price deck. Fitch's price deck assumes modestly rising commodity prices, with WTI of $42/bbl for 2016, $45/bbl for 2017 and $55/bbl for 2018 and a long-term price of $65/bbl. Henry Hub natural gas of $2.25/mcf for 2016, $2.50/mcf for 2017, $2.75/mcf for 2018, and $3.25/mcf long term. -- Volume declines in 2016 and 2017 with very modest volume growth in 2018 and 2019 as commodity prices rise and production starts to recover. -- Maintenance capital at DPM of roughly $50mm annually. -- DPM's 2017 maturity assumed to be refinance at DPM at a 6.5% coupon. RATING SENSITIVITIES Negative: Future developments that may, individually or collectively, lead to negative rating action include: For DPM -- Leverage expected above 4.5x on a sustained basis and/or distribution coverage consistently below 1.0x would likely result in at least a one notch downgrade. -- A significant decline in fixed fee or hedged commodity exposed gross margin to less than 70% fixed fee or hedged without an appropriate, significant adjustment in capital structure, specifically a reduction in leverage, would likely lead to at least a one notch downgrade. -- Acceleration of dropdowns that results in significantly increased leverage or commodity price exposure at DPM could lead to a negative ratings action at DPM. -- A significant change in the ownership support structure from SE and PSX to DCP Midstream, and from all three to DPM, particularly with regard to commodity price exposure, distribution policies at DCP and DPM, and capital structure. -- Significant volume declines leading to margin and earnings pressure. For DCP -- If DPM's ratings were to move lower Fitch would consider a negative ratings action at DCP given DCP's near-term reliance on DPM distributions to support operations and service debt. -- A significant change in the ownership support structure from SE and PSX to DCP Midstream, particularly with regard to distribution policies at DCP and DPM, increased commodity price exposure, and capital structure. Positive: Future developments that may, individually or collectively, lead to positive rating action include: -- For DPM the exhibited ability to increase the percentage of fixed fee or hedged gross margin for 2017 and beyond to above 70% while maintaining leverage below 4.0x and distribution coverage above 1.0x on a sustained basis could lead to a positive ratings action. -- For DCP the improvement of standalone DCP LLC leverage to between 4.0x to 4.5x on a sustained basis could lead to a positive rating action. LIQUIDITY Liquidity adequate: DCP and DPM have adequate liquidity. DCP LLC recently renegotiated its secured revolving credit facility downsizing it to $700 million, pushing its maturity date out to May 2019 and increasing the security package securing the revolver. The revolver is secured by the equity interest in DPM and DCP's other operating subsidiaries. The revolver has certain financial covenants which largely go into effect in the 1Q 2017. Along with other restrictions, the terms of this facility only allows for payment of distributions, except for certain tax distributions related to the sale of assets, to Phillips 66 and Spectra, if DCP has no outstanding borrowings and meets certain leverage and liquidity thresholds. As of Sept. 8, 2016 DCP had full availability under the revolver. DPM has access to a $1.25 billion unsecured revolving credit facility which matures in May 2019. As of July 29, 2016, DPM had $125 million of outstanding borrowings on the revolving credit facility and had approximately $1,125 million of unused borrowing capacity. DPM's revolver requires maintain a leverage ratio (as defined in the agreement) of not more than 5.0x, as of June 30, 2016 this ratio was 3.4x. Fitch expects both DCP and DPM to remain in compliance with their respective financial covenants over the 2016-2019 forecast period. DCP and DPM's near term maturities are manageable. At DCP the extension of the revolver to 2019 means there are no near-term maturities at DCP until 2019. At DPM there is a $500 million maturity in December 2017. Fitch expects based on current market conditions that DPM will be able to refinance that maturity or have enough availability on its revolving credit facility to repay the note at maturity. DEAN YOUNG: Hires Moore Taylor as Attorney ------------------------------------------ Dean Young Enterprises, LLC seeks authorization from the U.S. Bankruptcy Court for the South District of Carolina to employ Jane H. Downey and Moore Taylor Law Firm, PA as attorney. The Debtor requests to employ Jane H. Downey and the Moore Taylor Law Firm, P.A. to provide necessary legal services. Moore Taylor Law Firm will be paid at these hourly rates: Jane H. Downey, Esq. $385 Attorney $250 Assistants/Law Clerk $150 Jane H. Downey, Esq., partner at the Moore Taylor Law Firm, PA, assured the Court that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtor and its estates. Moore Taylor Law Firm may be reached at: Jane H. Downey, Esq. Moore Taylor Law Firm, PA 1700 Sunset Boulevard West Columbia, SC 29171 Phone: (803)929-0030 About Dean Young Enterprises   Dean Young Enterprises, LLC sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D.S.C. Case No. 16-04214) on August 19, 2016. The case is assigned to Judge David R. Duncan. Jane H. Downey, Esq. at Moore Taylor Law Firm, P.A. serves as bankruptcy counsel. The petition was signed by Dean Young, vice president.    At the time of the filing, the Debtor estimated its assets and debts at $1 million to $10 million. The Debtor hired Colliers International South Carolina, Inc. as its real estate agent.   DELCATH SYSTEMS: Recurring Losses Raises Going Concern Doubt ------------------------------------------------------------ Delcath Systems, Inc., filed its quarterly report on Form 10-Q, disclosing a net loss of $6.67 million on $511,000 of revenue for the three months ended June 30, 2016, compared with a net loss of $3.69 million on $466,000 of revenue for the same period in 2015. The Company's balance sheet at June 30, 2016, showed $41.39 million in total assets, $35.96 million in total liabilities, and a stockholders' equity of $5.43 million. Delcath has operated at a loss for its entire history and anticipates that losses will continue over the coming years. There can be no assurance that Delcath will ever generate significant revenues or achieve profitability. The Company expects to use cash, cash equivalents and investment proceeds to fund its clinical and operating activities. At June 30, 2016, the Company had cash and cash equivalents totaling $7.5 million, as compared to cash and cash equivalents totaling $12.6 million and $14.1 million at December 31, 2015 and June 30, 2015, respectively. In addition, the Company has $30.3 million in restricted cash primarily related to the Convertible Notes. During the six months ended June 30, 2016 the Company used $7.0 million of cash in its operating activities, which compares to $9.0 million used for operating activities during the comparable period in 2015. The decrease of $2.0 million is primarily driven by a reduction in cash payments related to severance, bonus and lease restructuring liabilities. The Company believes that its capital resources are adequate to fund its operating activities through the end of 2017. The Company expects to incur significant expenses and operating losses for the foreseeable future. These factors raise substantial doubt about the Company's ability to continue as a going concern. Because Delcath's business does not generate positive cash flow from operating activities, the Company will need to obtain substantial additional capital in order to fund clinical trial research and support development efforts relating to Ocular Melanoma liver metastases, ICC, HCC or other indications, and to fully commercialize the product. The Company believes it will be able to raise additional capital in the event it is in its best interest to do so. The Company anticipates raising such additional capital by either borrowing money, selling shares of Delcath's capital stock, or entering into strategic alliances with appropriate partners. To the extent additional capital is not available when needed or on acceptable terms, the Company may be forced to abandon some or all of its development and commercialization efforts, which would have a material adverse effect on the prospects of its business. Further, the Company's assumptions relating to its cash requirements may differ materially from its actual requirements because of a number of factors, including significant unforeseen delays in the regulatory approval process, changes in the timing, scope, focus and direction of clinical trials and costs related to commercializing the product. A copy of the Form 10-Q is available at: https://is.gd/SldwPu Delcath Systems, Inc., is a late-stage clinical development company with early commercial activity in Europe focused on cancers of the liver. The Company is a specialty pharmaceutical and medical device company developing its product, Melphalan Hydrochloride for Injection for use with the Delcath Hepatic Delivery System (Melphalan/HDS). The Company's system delivers and filters melphalan hydrochloride, which is marketed as a device under the trade name Delcath Hepatic CHEMOSAT Delivery System for Melphalan (CHEMOSAT). DESERT LAND: Court Disqualifies Hutchison as Counsel ---------------------------------------------------- Judge Robert C. Jones of the United States District Court for the District of Nevada granted the motion filed by Tom Gonzales to disqualify Mark A. Hutchison or any member of the firm of Hutchison & Steffen, LLC, from representing Desert Land, LLC; Desert Oasis Apartments, LLC; Desert Oasis Investments, LLC; SkyVue Las Vegas, LLC; Howard Bulloch; and David Gaffin, as defendants in the cases captioned TOM GONZALES, Plaintiff, v. SHOTGUN NEVADA INVESTMENTS, LLC et al., Defendants, and TOM GONZALES, Plaintiff, v. DESERT LAND, LLC et al., Defendants, Nos. 2:13-cv-00931-RCJ-VPC, 2:15-cv-00915-RCJ-VPC (D. Nev.). The consolidated cases arose out of the alleged breach of a settlement agreement between Tom Gonzales and the debtors, Desert Land, LLC, Desert Oasis Apartments, LLC, and Desert Ranch, LLC that was part of the confirmation plan in the debtors' Chapter 11 bankruptcy action. Gonzales moved to disqualify Mark A. Hutchison or any member of the firm of Hutchison & Steffen, LLC from representing the defendants, arguing that because Hutchison & Steffen attorney Sid Kistler represented him when Kistler worked at Gordon & Silver, Kistler is disqualified from representing the defendants against him. Further, Gonzales argued that Kistler's conflict is imputed to all attorneys in the firm. Judge Jones was satisfied that Attorney Kistler represented Gonzales while at Gordon & Silver on a matter substantially related to the cases against the Desert entities. The judge also ruled that because Kistler's role was substantial, Hutchison & Steffan is therefore disqualified from representing the defendants. A full-text copy of Judge Jones' August 31, 2016 order is available at https://is.gd/6P3jCC from Leagle.com. Tom Gonzales is represented by: Mark D. Wray, Esq. LAW OFFICES OF MARK WRAY 608 Lander Street Reno, NV 89509 Tel: (775)348-8877 Fax: (775)348-8351 -- and -- Robert T. Stewart, Esq. HUTCHISON & STEFFEN, LLC Peccole Professional Park 10080 West Alta Drive, Suite 200 Las Vegas, NV 89145 Tel: (702)385-2500 Shotgun Creek Las Vegas, LLC, Shotgun Creek Investments, LLC, Shotgun Nevada Investments, LLC, Wayne Perry are represented by: Lenard E. Schwartzer, Esq. SCHWARTZER & MCPHERSON LAW FIRM 2850 South Jones Boulevard, Suite 1 Las Vegas, NV 89146 Tel: (702)228-7590 Fax: (702)892-0122 Desert Land, LLC, SkyVue Las Vegas, LLC, Desert Oasis Apartments, LLC, David Gaffin, Howard Bulloch, Desert Oasis Investments, LLC are represented by: Jeanette E. McPherson, Esq. Lenard E. Schwartzer, Esq. SCHWARTZER & MCPHERSON LAW FIRM 2850 South Jones Boulevard, Suite 1 Las Vegas, NV 89146 Tel: (702)228-7590 Fax: (702)892-0122 -- and -- Christian M. Orme, Esq. Robert T. Stewart, Esq. HUTCHISON & STEFFEN, LLC Peccole Professional Park 10080 West Alta Drive, Suite 200 Las Vegas, NV 89145 Tel: (702)385-2500 DIANE ROSE MAESTRI: Files Full-Payment Ch. 11 Plan -------------------------------------------------- Diane Rose Maestri filed an amended disclosure statement dated Sept. 6, 2016, a full-text copy of which is available at http://bankrupt.com/misc/15-12888-46.pdf The Plan provides for payment of administrative expenses, priority claims, and secured creditors in full, either in cash or in deferred cash payments, and provides for payments to unsecured creditors in an amount greater than they would receive in the event of a Chapter 7 liquidation -- payment in full for creditors that have joint claims against Debtor and her husband, and payment of $10,000 to other non-joint creditors. Funds for implementation of the Plan will be derived from the sale of real estate owned as tenants by the entireties by Debtor and her husband. The Debtor resides with her family in Virginia in a home owned as tenants by the entireties. The house is estimated to be worth well in excess of $1,000,000, now that the Debtor has completed repairs and renovations suggested as being necessary to sell it. The Debtor is currently not working, and receives social security disability due to a medical condition. HSBC Bank USA, National Association holds a first priority deed of trust in the amount of $647,053.94 as of the petition date, and there are federal tax liens in the amount of $59,926.35. Diane Rose Maestri filed for Chapter 11 bankruptcy protection (Bankr. E.D. Va. Case No. 15-12888) on Aug. 19, 2015. The Debtor is represented by: Daniel M. Press, Esq. Chung & Press, P.C. 6718 Whittier Ave., Suite 200 McLean, VA 22101 Tel: (703) 734-3800 Fax: (703) 734-0590 Email: dpress@chung-press.com DRYSDALE VILLAGE: 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 The Drysdale Village, LLC. The Drysdale Village, LLC dba Frontier Village, based in Yuma, Ariz., filed a Chapter 11 petition (Bankr. D. Ariz. Case No. 16-08755) on July 29, 2016. Hon. Scott H. Gan presides over the case. Thomas H. Allen of Allen Barnes & Jones, PLC serves as the Debtor's bankruptcy counsel. In its petition, the Debtor estimated $1 million to $10 million in assets and liabilities. The petition was signed by Raymond Drysdale, president. ELEPHANT TALK: Receives Noncompliance Notice from NYSE MKT ---------------------------------------------------------- Elephant Communications Corp. disclosed that it received on Sept. 7, 2016, a notice from NYSE MKT LLC indicating that the Company is not currently in compliance with the Exchange's continued listing standards as set forth in Section 1003(a)(ii) of the NYSE MKT Company Guide, since the Company's reported stockholders' equity as of June 30, 2016, is $2.5 million and the Company has net losses in its last five most recent fiscal years ended Dec. 31, 2015. This notice is in addition to notices received by the Company from the Exchange on Aug. 8, 2016, as previously disclosed on a Current Report on Form 8-K filed by the Company on Aug. 12, 2016, for which the Company submitted a plan of compliance on Aug. 19, 2016, and May 26, 2016, as previously disclosed on a Current Report on Form 8-K filed by the Company on June 2, 2016, for which the Company submitted a plan of compliance on June 27, 2016. The Exchange has reviewed the Company's Aug. 19, 2016, plan of compliance, as amended, and determined to accept the plan and grant a conditional plan period through Dec. 31, 2016. The Exchange has indicated that it will formally review the Company at the end of each month to ensure that it has demonstrated progress and achieved the milestones set forth in the plan. If the Company is not in compliance with the continued listing standards by Dec. 31, 2016, or if the Company does not make progress consistent with the plan during the plan period, the Exchange will initiate delisting proceedings as appropriate. The Company may appeal a staff delisting determination in accordance with Section 1010 and Part 12 of the Company Guide. 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 $5.00 million on $31.0 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 $22.5 million in total assets, $20.0 million in total liabilities and $2.53 million 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: Sold 73 Series A Shares for $729,968 --------------------------------------------------- Elephant Talk Communications Corp. consummated a closing of its private placement offering of Series A Preferred Stock, par value $0.00001 per share, to "accredited investors". At the Closing, the Company sold 73 shares of Series A Preferred Stock for aggregate gross proceeds of $729,968. The Closing is part of a "best efforts" private placement offering of up to $1,500,000 consisting of up to 150 shares of Series A Preferred Stock. Each share of Series A Preferred Stock is convertible into 0.04% of the Company's issued and outstanding shares of common stock immediately prior to conversion. Accordingly, if the Maximum Amount is sold in the Offering, the outstanding Series A Preferred Stock, in the aggregate, will be convertible into 6.0% of the Company's issued and outstanding shares of common stock immediately prior to conversion. The Series A Preferred Stock are convertible at the option of the holder, except that (i) if there is a change in control (as defined in the Certificate of Designation) before Sept. 2, 2017, or (ii) any time after Sept. 2, 2017, the Company has the option to automatically convert the Series A Preferred Stock into common stock. The holders of Series A Preferred Stock are not entitled to receive any dividends and have no voting rights (except that the Company may only take certain corporate actions with the approval of a majority of the outstanding shares of Series A Preferred Stock). Further, upon liquidation, dissolution or winding up of the Company, the holders of Series A Preferred Stock will receive distributions on par with and on a pro rata basis with the common stockholders as though the Series A Preferred Stock had been converted at the time of such liquidation, dissolution or winding up of the Company. The Investors in the Offering have also received piggy-back registration rights with respect to the shares of common stock issuable upon conversion of the Series A Preferred Stock. In connection with the Offering, the Company retained a placement agent. The Company agreed to pay the placement agent, subject to certain exceptions, a cash fee equal to 8% of the aggregate gross proceeds raised by the placement agent in the Offering plus the reimbursement of certain out-of-pocket expenses. The Series A Preferred Stock was offered and sold pursuant to an exemption from registration under Section 4(a)(2) and Regulation D of the Securities Act. On Sept. 2, 2016, in connection with the Closing of the Offering, the Company filed with the Secretary of State of Delaware the Certificate of Designation. Pursuant to the Certificate of Designation, the Company designated 150 shares of Series A Preferred Stock for issuance. 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 $22.5 million in total assets, $19.96 million in total liabilities and $2.53 million 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: To Offer $20 Million Worth of Securities ------------------------------------------------------- Elephant Talk Communications Corp. filed with the Securities and Exchange Commission a Form S-3 registration statement relating to the sale, from time to time, in one or more series, any one of these securities, for total gross proceeds of up to $20,000,000: * common stock; * preferred stock; * purchase contracts; * warrants to purchase our securities; * subscription rights to purchase any of the foregoing securities; * depositary shares; * secured or unsecured debt securities consisting of notes, debentures or other evidences of indebtedness which may be senior debt securities, senior subordinated debt securities or subordinated debt securities, each of which may be convertible into equity securities; or * units comprised of, or other combinations of, the foregoing securities. The Company may offer and sell these securities separately or together, in one or more series or classes and in amounts, at prices and on terms described in one or more offerings. The Company may offer securities through underwriting syndicates managed or co-managed by one or more underwriters or dealers, through agents or directly to purchasers. The prospectus supplement for each offering of securities will describe in detail the plan of distribution for that offering. Each time the Company's securities are offered, the Company will provide a prospectus supplement containing more specific information about the particular offering and attach it to this prospectus. The prospectus supplements may also add, update or change information contained in this prospectus. This prospectus may not be used to offer or sell securities without a prospectus supplement which includes a description of the method and terms of this offering. The Company's common stock is listed on the NYSE MKT under the symbol "ETAK." On Sept. 7, 2016, the last reported sale price of the Company's common stock on the NYSE MKT was $0.16 per share. The aggregate market value of the Company's outstanding common stock held by non-affiliates is $21,841,480 based on 168,149,756 shares of outstanding common stock, of which 114,955,159 shares are held by non-affiliates, and a per share price of $0.19 which was the closing sale price of the Company's common stock as quoted on the NYSE MKT on July 12, 2016. A full-text copy of the Form S-3 prospectus is available at: https://is.gd/gzJs8u 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 $22.5 million in total assets, $19.96 million in total liabilities and $2.53 million 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. ELIZABETH ARDEN: Egan-Jones Hikes Sr. Unsec. Rating to CCC+ ----------------------------------------------------------- Egan-Jones Ratings Company raised the senior unsecured ratings on debt issued by Elizabeth Arden Inc to CCC+ from CCC on Aug. 24, 2016. Elizabeth Arden, Inc. is a major American cosmetics and fragrance company founded by Elizabeth Arden. ENERGY FUTURE: Reaches $11.8M Deal With Texas Comptroller --------------------------------------------------------- BankruptcyData.com reported that Energy Future Holdings filed with the U.S. Bankruptcy Court a motion for an order approving a settlement with the Texas Comptroller of Public Accounts. According to documents filed with the Court, "By this Motion, the Debtors seek entry of the Order approving the Settlement with the Texas Comptroller whereby the TCEH Debtors pay the Texas Comptroller $11.8 million for a mutual release of all claims and liens for prepetition taxes asserted by the Texas Comptroller against the Debtors and potential refund claims asserted by the Debtors. In total, the Texas Comptroller has filed assessments totaling approximately $330 million and proofs of claim totaling approximately $150 million. The Texas Comptroller asserts that certain of these amounts are fully secured and may not fully reflect penalties and interest that are owed. Of the $150 million of proofs of claim filed by the Texas Comptroller, approximately $55 million is attributable to the Gross Margin Tax, with the remaining amounts attributable to sales, gross receipts utilities, and direct pay taxes. In total, the Debtors have submitted approximately $48.5 million of disputed or un-finalized refunds and beneficial positions. Of that amount, approximately $11.5 million is related to 'E-side' adjustments, approximately $2.4 million is not readily subject to allocation between the 'E-side' and 'T-side' because they relate to intercompany elimination entries and related items, and the remainder is related to adjustments with respect to the TCEH Debtors, EFH Corporate Services, or EFH Properties Company." The Court scheduled a Sept. 26, 2016 hearing to consider the motion, with objections due by Sept. 20, 2016, according to the report. About Energy Future Energy Future Holdings Corp., formerly known as TXU Corp., is a privately held diversified energy holding company with a Portfolio of competitive and regulated energy businesses in Texas. Oncor, an 80 percent-owned entity within the EFH group, is the largest regulated transmission and distribution utility in Texas. The Company delivers electricity to roughly three million delivery points in and around Dallas-Fort Worth. EFH Corp. was created in October 2007 in a $45 billion leverage buyout of Texas power company TXU in a deal led by private-equity companies Kohlberg Kravis Roberts & Co. and TPG Inc. On April 29, 2014, Energy Future Holdings and 70 affiliated companies sought Chapter 11 bankruptcy protection (Bankr. D. Del. Lead Case No. 14-10979) after reaching a deal with some key financial stakeholders to keep its businesses operating while reducing its roughly $40 billion in debt. The Debtors' cases have been assigned to Judge Christopher S. Sontchi (CSS). The Debtors are seeking to have their cases jointly administered for procedural purposes. As of Dec. 31, 2013, EFH Corp. reported assets of $36.4 billion in book value and liabilities of $49.7 billion. The Debtors have $42 billion of funded indebtedness. EFH's legal advisor for the Chapter 11 proceedings is Kirkland & Ellis LLP, its financial advisor is Evercore Partners and its restructuring advisor is Alvarez & Marsal. The TCEH first lien lenders supporting the restructuring agreement are represented by Paul, Weiss, Rifkind, Wharton & Garrison, LLP as legal advisor, and Millstein & Co., LLC, as financial advisor. The EFIH unsecured creditors supporting the restructuring agreement are represented by Akin Gump Strauss Hauer & Feld LLP, as legal advisor, and Centerview Partners, as financial advisor. The EFH equity holders supporting the restructuring agreement are represented by Wachtell, Lipton, Rosen & Katz, as legal advisor, and Blackstone Advisory Partners LP, as financial advisor. Epiq Systems is the claims agent. Wilmington Savings Fund Society, FSB, the successor trustee for the second-lien noteholders owed about $1.6 billion, is represented by Ashby & Geddes, P.A.'s William P. Bowden, Esq., and Gregory A. Taylor, Esq., and Brown Rudnick LLP's Edward S. Weisfelner, Esq., Jeffrey L. Jonas, Esq., Andrew P. Strehle, Esq., Jeremy B. Coffey, Esq., and Howard L. Siegel, Esq. An Official Committee of Unsecured Creditors has been appointed in the case. The Committee represents the interests of the unsecured creditors of only of Energy Future Competitive Holdings Company LLC; EFCH's direct subsidiary, Texas Competitive Electric Holdings Company LLC; and EFH Corporate Services Company, and of no other debtors. The Committee has selected Morrison & Foerster LLP and Polsinelli PC for representation in this high-profile energy restructuring. The lawyers working on the case are James M. Peck, Esq., Brett H. Miller, Esq., and Lorenzo Marinuzzi, Esq., at Morrison & Foerster LLP; and Christopher A. Ward, Esq., Justin K. Edelson, Esq., Shanti M. Katona, Esq., and Edward Fox, Esq., at Polsinelli PC. * * * In December 2015, the Bankruptcy Court confirmed the Debtors' Sixth Amended Joint Plan of Reorganization. In May 2016, certain first lien creditors of TCEH delivered a Plan Support Termination Notice to the Debtors and the other parties to the Plan Support Agreement, notifying the parties of the occurrence of a Plan Support Termination Event. The delivery of the Plan Support Termination Notice caused the Confirmed Plan to become null and void. Following the occurrence of the Plan Support Termination Event as well as the termination of a roughly $20 billion deal to sell the Debtors' stake in Oncor Electric Delivery Co., the Debtors filed the Plan of Reorganization and the Disclosure Statement with the Bankruptcy Court on May 1, 2016. On May 11, they filed an amended joint plan of reorganization and a related disclosure statement. In June 2016, Judge Sontchi approved the disclosure statement explaining Energy Future Holdings Corp., et al.'s second amended joint plan of reorganization of the TCEH Debtors and the EFH Shared Services Debtors. On Aug. 27, 2016, Judge Sontchi confirmed the Chapter 11 exit plans of two of Energy Future Holdings Corp.'s subsidiaries, power generator Luminant and retail electricity provider TXU Energy Inc. ERICKSON INC: S&P Retains 'CCC' Rating on 2nd Lien Notes -------------------------------------------------------- S&P Global Ratings revised its recovery rating on Portland, Ore.-based helicopter services provider Erickson Inc.'s second-lien notes to '4' from '3'. The '4' recovery rating indicates S&P's expectation for average (30%-50%; higher half of the range) recovery in the event of a payment default. The 'CCC' issue-level rating on the notes is unchanged. The change in recovery is primarily due to a revised valuation assumption of the helicopter assets backing the second-lien notes, based on S&P's expectation of lower realized values in an environment of oversupply. RECOVERY ANALYSIS Key analytical factors -- S&P has valued the company on a discrete asset valuation (DAV) basis because it believes that it would be liquidated in the event of default. -- S&P has assumed that, at default, the asset-based lending revolving credit facility is 87% drawn, which is comparable with current levels. -- The estimated recovery reflects the senior secured notes' second-lien position on Erickson's assets in relation to the first-lien amount. Simulated year of default: 2017 Simplified waterfall -- Net enterprise value (after 5% administrative costs): $295 million -- Valuation split (obligors/nonobligors): 80%/20% -- Value available to first-lien debt claims (collateral/noncollateral): -- $274 million/$0 -- Secured first-lien debt claims: $125 million -- Recovery expectations: Not applicable -- Value available to second-lien debt claims (collateral/noncollateral): -- $150 million/$20 million -- Secured second-lien debt claims: $370 million -- Recovery expectations: 30%-50% (higher half of the range) -- Total value available to unsecured claims: $21 million -- Recovery expectations: Not applicable -- Structurally subordinated debt claims: $11 million -- Recovery expectations: Not applicable Note: All debt amounts include six months of prepetition interest. The collateral value equals the asset pledge from obligors after priority claims plus the equity pledge from nonobligors after nonobligor debt. Ratings List Erickson Inc. Corporate Credit Rating CCC/Negative/-- Rating Unchanged; Recovery Rating Revised Erickson Inc. To From Second-lien notes CCC CCC Recovery Rating 4H 3L ESSER REALTY: Unsecureds to Get 5% On Effective Date ---------------------------------------------------- Esser Realty filed a Fourth Amended Disclosure Statement dated Sept. 6, 2016, a full-text copy of which is available at http://bankrupt.com/misc/14-11052-143.pdf,proposing to pay Unsecured Creditors 5% on the Effective Date. All payments to Unsecured Creditors will be made by contributions from the Esser Realty Partnership members, according to the Fourth Amended Disclosure Statement. The Debtor's Third Amended Disclosure Statement dated July 18, 2016, provided that Unsecured Creditors will be paid 5% over 3 years in annual payments beginning one year from the Effective Date. Esser Realty owns property which is leased by sole tenant, Esser Family Dental, which is one of only 2 dental practices in northwestern Pennsylvania that could provide treatment for children with Medicaid in an outpatient surgery center from 1997 through 2012. The Chapter 11 case is In re Esser Realty (Bankr. W.D. Pa. Case No. 14-11052). The Debtor is represented by Guy C. Fustine, Esq., at Knox McLaughlin Gornall & Sennett, P.C., in Erie, Pennsylvania. EXTREME PLASTICS: Plan Filing Deadline Extended Through Oct. 30 --------------------------------------------------------------- The Hon. Christopher S. Sontchi of the U.S. Bankruptcy Court for the District of Delaware has extended, at the behest of Extreme Plastics Plus, Inc., and EPP Intermediate Holdings, Inc., the periods within which the Debtors have the exclusive right to: (a) file a chapter 11 plan through and including Oct. 30, 2016, and (b) solicit acceptances of a chapter 11 plan, through and including Dec. 29, 2016. The Troubled Company Reporter previously said the Debtors asked for a 90-day extension of their exclusive periods to: (a) file a chapter 11 plan through Nov. 29, 2016, and (b) solicit acceptances of a chapter 11 plan, through Jan. 28, 2017, telling the Court that in the roughly three months since their First Exclusivity Extension, they have accomplished a great deal towards achieving of their value-maximizing goals through marketing and sale process, most significantly, the approval of a global settlement between the Debtors, the official committee of unsecured creditors. The Global Settlement has enabled the parties to focus on the marketing and sale process. About Extreme Plastics Plus Founded in 2007, privately-held Extreme Plastics Plus, Inc., operates an environmental containment business specializing in providing environmental lining, above ground storage tanks, composite rig mats, secondary steel wall containment systems, and closed loop solids control services, primarily for the oil and gas industry. Extreme Plastics has six facilities in Fairmont, West Virginia, Tunkhannock, Pennsylvania, St. Clairsville, Ohio, Moore, Texas, Odessa, Texas, and Oklahoma City, Oklahoma. The stock of Extreme Plastics is held entirely by EPP Intermediate Holdings, Inc. The stock of EPP Intermediate is held entirely by EPP Holding Company, LLC, a non-debtor. Extreme Plastics, and affiliate EPP Intermediate Holdings, Inc., sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 16-10221) on Jan. 31, 2016, as the ongoing decline in the price of oil and natural gas negatively impacted demand of the Debtors' services. Honorable Christopher S. Sontchi presides over the case. Extreme Plastics estimated $10 million to $50 million in assets and $50 million to $100 million in debt. EPP Intermediate estimated $1 million to $10 million in assets and $50 million to $100 million in debt. As of the Petition Date, Extreme Plastics owes $49.5 million under a secured facility provided by lenders led by Citizens Bank of Pennsylvania, as agent. The facility is secured by a lien in substantially all of the Debtors' assets, as well as a pledge of 100% of the equity in Extreme Plastics and EPP Intermediate. The Debtors tapped Sullivan Hazeltine Allinson LLC as attorneys and Epiq Bankruptcy Solutions, LLC, as claims and noticing agent. The U.S. Trustee has appointed five members to the Official Committee of Unsecured Creditors. The Committee selected Reed Smith LLP as counsel. FIRST DATA: Capital Research Holds 15.2M CL-A Shares as of Aug. 31 ------------------------------------------------------------------ In an amended Schedule 13G filed with the Securities and Exchange Commission, Capital Research Global Investors disclosed that as of Aug. 31, 2016, it is deemed to be the beneficial owner of 15,236,768 shares of Class A common stock of First Data Corporation or 4.4% of the 341,456,745 shares believed to be outstanding as a result of CRMC acting as investment adviser to various investment companies registered under Section 8 of the Investment Company Act of 1940. A full-text copy of the regulatory filing is available for free at https://is.gd/8Z8tCh About First Data Based in Atlanta, Georgia, First Data Corporation provides commerce and payment solutions for financial institutions, merchants, and other organizations worldwide. First Data reported a net loss attributable to the Company of $1.48 billion on $11.5 billion of total revenues for the year ended Dec. 31, 2015, compared to a net loss attributable to the Company of $458 million on $11.2 billion of total revenues for the year ended Dec. 31, 2014. As of June 30, 2016, First Data had $34.2 billion in total assets, $30.4 billion in total liabilities, $74 million in redeemable non-controlling interest, and $3.74 billion in total equity. * * * The Company carries a 'B2' corporate family rating, with a stable outlook, from Moody's Investors Service, a 'B+' corporate credit rating, with stable outlook, from Standard & Poor's, and a 'B' long-term issuer default rating from Fitch Ratings. FKF 3 LLC: Suit vs. Principals To Be Heard in District Court ------------------------------------------------------------- In the case captioned GREGORY MESSER, as Trustee of the FKF TRUST, Plaintiff, v. JOHN F. MAGEE, et al., Defendants, Case No. 13-CV-3601 (KMK) (S.D.N.Y.), Judge Kenneth M. Karas of the United States District Court for the Southern District of New York granted the renewed motion filed by John F. Magee to withdraw the reference to the bankruptcy court of the adversary proceeding. Gregory Messer, as trustee of the FKF Trust, brought an adversary proceeding, asserting several claims against defendants John F. Magee, Mitchell L. Klein, Burton R. Dorfman, Melissa A. Magee, Patrice L. Magee, Jonathan Magee, Lizbeth Magee Keefe, Lawrence J. Keefe, Jr., Valerie Magee, FKF Holding Company, LP, FKF V Holding Co., S.F. Properties, LLC, Commercial Construction, Inc., Bradley Industrial Park, Inc., FKF Edgewater, LLC, Aventine Edgewater LLC, FKF Retail LLC, Aventine Retail, LLC, Jerry's Self Storage, LLC, Rose Glasses, LLC, Bashert Developers, LLC, TA Group, LLC, JDJ Holding Co., LLC, Fasman, Klein & Feldstein, LLP, and Dorfman, Knoebel & Conway, LLP, in connection with the underlying bankruptcy proceeding of FKF 3, LLC. Mr. Magee, independently and/or on behalf of entities within his control, asserts a contingent claim in the amount of $30,000,000 against [the Debtor], along with a contingent, unliquidated claim against the Debtor in an amount yet to be determined by reason of the Debtor's failure. The Debtor is owned in equal shares by its principals and members Magee, a real estate entrepreneur, Klein, an accountant, and Dorfman, an attorney. In the adversary proceeding, the Plaintiff seeks an award of actual damages against the Principals on account of the Principals' breaches of their fiduciary duties in an amount not less than $75 million, punitive damages, recovery of over $50 million in fraudulent transfers made directly and indirectly to the Principals and their various family members and companies, and damages against the FKF Firm and Dorfman Firm for malpractice, professional negligence, breach of fiduciary duties, and for contributing to the Principals' tortious conduct. Mr. Magee initially filed a Motion to Withdraw the Reference to the Bankruptcy Court on January 12, 2012, which was dismissed without prejudice to renewal on May 7, 2013. After the First Motion to Withdraw was filed, pretrial proceedings continued in the bankruptcy court, and discovery closed on June 28, 2013. Magee subsequently filed the renewed motion on May 29, 2013. Judge Karas determined that the bankruptcy court lacks the constitutional authority to finally adjudicate the Trustee's claims for breach of fiduciary duty, aiding and abetting breach of fiduciary duty, alter-ego liability, and contribution, and that the Seventh Amendment requires that John F. Magee have a jury trial as to those claims, the reference must be withdrawn, at a minimum, as to those claims, given that the case is trial ready. However, Judge Karas also noted that given the substantial factual overlap among the various claims and the defendants, it would be inefficient to try the case in separate courts. The judge explained that the overall factual similarity among the various claims, defendants, and factual issues would render multiple proceedings too wasteful to allow. Accordingly, Judge Karas withdrew the reference as to the entire adversary proceeding. Ther adversary proceeding will be heard by the District Court in its entirety. A full-text copy of Judge Karas' August 30, 2016 opinion and order is available at https://is.gd/aRgXMs from Leagle.com. FKF 3, LLC is represented by: Jeffrey A. Reich, Esq. REICH REICH & REICH, P.C. 235 Main Street, Suite 450 White Plains, NY 10601 Tel: (914)949-2126 Fax: (914)949-1604 Email: reichlaw@aol.com Gregory Messer is represented by: Frederick N. Stevens, Esq. KLESTADT & WINTERS, LLP 570 Seventh Avenue, 17th Floor New York, NY 10018 Tel: (212)972-3000 Fax: (212) 972-2245 Email: fstevens@klestadt.com John F. Magee is represented by: Michael David Pinsky, Esq. HAYWARD, PARKER, O'LEARY & PINSKY 225 Dolson Avenue, Suite 303 Middletown, NY 10940 Tel: (845)343-6227 Fax: (845)343-1927 About FKF 3, LLC URI Sasson, Kathryn Bareket, and Angela Badami made an involuntary Chapter 11 bankruptcy protection against FKF 3, LLC, on July 19, 2010 (Bankr. S.D. N.Y. Case No. 10-37170). Judge Cecelia G. Morris presides over the case. Henry N Christensen, Jr., Esq., at Norton & Christensen, represents the petitioners. Judge Morris ruled that the Company is eligible to be a Debtor under Chapter 11 of the Bankruptcy Code. FLOUR CITY: Bankruptcy Judge Rejects $5-Mil. Bid from Lender ------------------------------------------------------------ Katy Stech, writing for The Wall Street Journal Pro Bankruptcy, reported that a federal judge rejected a $5 million purchase offer for Bruegger's Bagels largest franchisee, Flour City Bagels, LLC, questioning in a detailed ruling whether financial professionals who put the company's 30 locations in upstate New York into bankruptcy took competing purchase offers seriously. According to the report, in a 59-page opinion, U.S. Bankruptcy Court Judge Paul Warren pointed out that Kevin Coyne, who runs the chain's operations and declared a lender's $5 million bid to be a bankruptcy auction's winning offer, was put in power by that same lender in August 2015. Mr. Coyne took over after the franchisee fell behind on borrowing promises, the report noted. After a June 28 auction, Mr. Coyne determined that the bid from lender Canal Mezzanine Partners II LP -- an offer that consisted of $1.3 million and $3.7 million in forgiven debt -- beat an offer from an affiliate of the Bruegger's franchise owner itself, the report further noted. The bagel chain offered $4.75 million in cash, the report said. In his ruling, Judge Warren said that the lender's bid put the company at "a very serious risk" of not having enough cash to pay legal bills and other crucial debts, the report related. "Bruegger's all-cash bid of $4.75 million would have eliminated that risk, but was unpalatable to [the bankrupt company] -- and Canal -- for obvious reasons," the report related, citing Judge Warren. "The court questions the fairness of the negotiations between [the bankrupt chain] and Canal -- to the exclusion of Bruegger's -- which ultimately led to the selection of Canal's bid as the highest and best offer." Judge Warren also declined to approve the $4.75 million offer from Bruegger's franchise owner, the report said. About Flour City Bagels Headquartered in Fairport, New York, Flour City Bagels, LLC, operates 32 bakeries that serve "New York Style" bagels, coffee, drinks, soups, salads, sandwiches, fresh fruit, and a variety of other related items. In 1993, it opened its commissary in Rochester, at which it produces bagels for sale at all of its 32 bakeries. It employs 425 people. Flour City Bagels sought protection under Chapter 11 of the Bankruptcy Code (Bankr. W.D.N.Y. Case No. 16-20213) on March 2, 2016, estimating both assets and debt in the range of $10 million to $50 million. Kevin Coyne, the manager, signed the petition. Judge Paul R. Warren is assigned to the case. The Debtor is represented by Stephen A. Donato, Esq., and Camille W. Hill, Esq., at Bond, Schoeneck & King, PLLC, and Harry W. Greenfield, Esq., Jeffrey Toole, Esq., and Heather E. Heberlein, Esq., at Buckley King. The Official Committee of Unsecured Creditors of Flour City Bagels, LLC, retained Kane Russell Coleman & Logan PC as counsel, Gordorn & Schaal, LLP as local counsel, and Corporate Recovery Associates, LLC, as business and financial advisor for the Committee. FRYMIRE SERVICES: Court OKs Cash Collateral Use on Final Basis -------------------------------------------------------------- Judge Stacey G. Jernigan of the U.S. Bankruptcy Court for the Northern District of Texas authorized Frymire Services, Inc. to use cash collateral on a final basis. Judge Jernigan directed the Debtor to establish and maintain a debtor-in-possession account which will contain all operating revenues and any other source of cash constituting cash collateral, which is generated by and attributable to the collateral. Judge Jernigan ordered the Debtor to pay Capital One, National Association: (a) a single, lump sum payment of $150,000.00 before September 6, 2016; and (b) a monthly payment of $13,500.00 by the 5th business day of each month commencing in October 2016 until further order of the Court. Judge Jernigan granted Capital One replacement liens co-extensive with its prepetition liens, in all currently owned or after-acquired property and assets of the Debtor, of the same kind or nature that Capital One had prepetition. Judge Jernigan directed the Debtor to deposit $25,000 into its pre-petition operating account at Capital One, to protect Capital One against any potential credit card chargebacks that may be incurred by Capital One as a result of any of the Debtor’s customers disputing or otherwise seeking a reversal of their prior payments to the Debtor. The approved cash collateral Budget covers a 12-month period beginning on September 2016 and ending on August 2017. The Budget provides for total expenses in the amount of $14,062,066. A full-text copy of the Final Cash Collateral Order, dated September 1, 2016, is available at http://tinyurl.com/jpbxcx8 About Frymire Services Frymire Services, Inc. filed a Chapter 11 bankruptcy petition (Bankr. N.D. Tex. Case No. 16-32814) on July 15, 2016. The petition was signed by George R. Frymire, president. The Debtor was formed in Texas on April 2, 1956. The Debtor operates a commercial and residential services company specializing in HVAC heating/cooling and plumbing. Judge Stacey G. Jernigan presides over the case. The Debtor is represented by Bryan Christopher Assink, Esq., Mark A. Castillo, Esq., and Joshua Lee Shepherd, Esq., at Curtis Castillo, Esq. The Debtor estimated assets and debts at $1 million to $10 million at the time of the chapter 11 filing. G-I HOLDINGS: NYCHA's Indemnity, Restitution Claims Dismissed ------------------------------------------------------------- Judge Rosemary Gambardella of the United States Bankruptcy Court for the District of New Jersey granted in its entirety G-I Holdings, Inc., et al.'s motion for summary judgment against the New York City Housing Authority on its indemnity and restitution claims, and denied NYCHA's cross-motion for partial summary judgment as to liability. G-I Holdings is the successor-in-interest to GAF Corporation, an entity named in approximately 500,000 asbestos-related lawsuits. NYCHA filed its proof of claim on October 13, 2008, for asbestos property damage in the amount of $500 million to pay for the remediation of NYCHA owned housing complexes and buildings where, it was alleged, asbestos-containing products originally manufactured, mined, distributed, and sold by the debtors or its predecessors-in-interest were installed. NYCHA further alleged that it incurred costs necessary to abate the hazards by replacing such products with non-toxic substitutes. On December 10, 2008, G-I objected to NYCHA's Proof of Claim on the basis that NYCHA's claims have long since been time-barred, and NYCHA was aware of the purported damage to its buildings from the asbestos containing materials long before January 5, 2008, the cutoff date for such claims. On December 14, 2010, the court entered a decision on G-I's objection and determined that NYCHA's tort based claims, including negligence, personal injury, and/or property damage, were time-barred. On December 15, 2014, G-I filed a motion for summary judgment on NYCHA's causes of action for indemnity and restitution, making three main arguments in support of its position: 1) NYCHA cannot make the factual or legal showing necessary to sustain claims for equitable indemnity and restitution; 2) NYCHA's causes of action for equitable indemnity and restitution are recast time-barred tort claims; and 3) NYCHA's equitable claims are precluded by laches and should be dismissed. On February 9, 2014, NYCHA also filed a cross motion for partial summary judgment as to liability on its restitution and indemnity claims, asserting that it has "provided more than sufficient evidence to prove the material facts of each" of the elements that the court identified in its 2010 opinion to establish claims for true restitution and indemnity and that on the "significant" question whether the asbestos containing materials at issue are "inherently dangerous," that G-I has demonstrated that it has no scientific and evidence-based proof that the products of its predecessors in NYCHA buildings are not hazardous to human health. Judge Gambardella held that, as a matter of law, summary judgment must be granted in favor of G-I and against NYCHA with respect to NYCHA's common law indemnity claim because, although NYCHA owes a duty to its tenants, that duty does not extend, as a matter of law, to G-I to indemnify NYCHA for its own activities. Judge Gambardella also concluded that G-I is entitled to summary judgment on NYCHA's restitution claims. The judge held that an award for restitution damages to NYCHA is not appropriate because to do so would make damages recoverable from a party who supplied any potentially hazardous materials or substances. The judge found that, NYCHA in essence, has failed to show it fulfilled a duty also owed by G-I in response to action that was "immediately necessary" to protect "public decency, health, or safety." Judge Gambardella found no genuine dispute as to any material fact regarding the lack of urgency as it pertains to NYCHA's restitution claims. Lastly, Judge Gambardella found that NYCHA's indemnity and restitution claims are recast time-barred tort claims and as such must be dismissed. A full-text copy of Judge Gambardella's September 9, 2016 opinion is available at http://bankrupt.com/misc/njb01-30135-11004.pdf Reorganized Debtors, G-I Holdings, Inc., et al are represented by: Dennis J. O'Grady, Esq. Mark E. Hall, Esq. RIKER, DANZIG, SCHERER, HYLAND & PERRETTI, LLP Headquarters Plaza One Speedwell Avenue Morristown, NJ 07962-1901 Tel: (973)538-0800 Fax: (973)538-1984 Email: dogrady@riker.com mhall@riker.com -- and -- Andrew Rossman, Esq. Scott C. Shelley, Esq. Jacob J. Waldman, Esq. QUINN EMANUEL, URQUHART & SULLIVAN, L.P. 51 Madison Avenue New York, NY 10010 Tel: (212)849-7000 Fax: (212)849-7100 Email: andrewrossman@quinnemanuel.com scottshelley@quinnemanuel.com jacobwaldman@quinnemanuel.com -- and –- Marc J. Kurzman, Esq. SANDAK, HENNESSEY & GRECO, LLP 707 Summer Avenue Stamford, CT 06901 Tel: (203)425-4200 Fax: (203)325-8608 Email: mkurzman@carmodylaw.com New York City Housing Authority is represented by: Jeffrey M. Pollock, Esq. FOX ROTHSCHILD, LLP Princeton Pike Corporate Center 997 Lenox Drive - Building 3 Lawrenceville, NJ 08648-2311 Tel: (609)896-3600 Fax: (609)896-1469 Email: jmpollock@foxrothschild.com -- and -- Philip J. Goodman, Esq. LAW OFFICES OF PHILIP J. GOODMAN, P.C. 280 North Old Woodward Avenue - Suite 407 Birmingham, MI 48009 -- and -- Christopher M. Placitella, Esq. Jared M. Placitella, Esq. Joel Rosen, Esq. Stewart L. Cohen, Esq. Harry M. Roth, Esq. COHEN, PLACITELLA & ROTH. P.C. 2001 Market Street - Suite 2900 Philadelphia, PA 19103 Tel: (866)291-7088 Fax: (215)567-6019 About G-I Holdings Based in Wayne, New Jersey, G-I Holdings, Inc., is a holding company that indirectly owns Building Materials Corporation of America, a manufacturer of premium residential and commercial roofing products. The Company filed for bankruptcy after already spending $1.5 billion paying asbestos claims from the 1967 acquisition of Ruberoid Co. G-I Holdings, Inc., fka GAF Corporation, filed a chapter 11 petition (Bankr. D.N.J. Case No. 01-30135) on Jan. 5, 2001, and continued to operate its business as a debtor-in-possession pursuant to Sections 1107(a) and 1108 of the Bankruptcy Code. ACI, Inc., a subsidiary of G-I Holdings, filed a voluntary chapter 11 petition (Bankr. D.N.J. Case No. 01-38790) on Aug. 3, 2001. On Oct. 10, 2001, the Bankruptcy Court entered an Order directing the joint administration of the G-I Holdings and ACI bankruptcy cases. Dennis J. O'Grady, Esq., and Mark E. Hall, Esq., at Riker, Danzig, Scherer, Hyland & Perretti, LLP, serve as co-counsel to the Reorganized Debtors. Andrew J. Rossman, Esq., and Jacob J. Waldman, Esq., at Quinn Emanuel, Urquhart & Sullivan, LLP, serve as special counsel to Reorganized Debtors. An Official Committee of Unsecured Creditors was appointed on Jan. 18, 2001, by the U.S. Trustee to represent those individuals who allegedly suffered injuries related to asbestos exposure from products manufactured by the predecessors of G-I Holdings. Lowenstein Sandler PC represents the Unsecured Creditors Committee. On Oct. 10, 2001, the Bankruptcy Court appointed C. Judson Hamlin as the Legal Representative, a fiduciary to represent the interests of persons who hold present and future asbestos-related claims against G-I. Keating, Muething & Klekamp, P.L.L., is the principal counsel to the Legal Representative of Present and Future Asbestos-Related Demands. G-I Holdings is the successor-in-interest to GAF Corporation, an entity named in approximately 500,000 asbestos-related lawsuits. The Committee submitted that, as successor-in-interest to GAF, G-I Holdings remained liable for roughly 150,000 asbestos-related lawsuits filed, but unresolved, as of the Petition Date and for unknown numbers of asbestos-related claims that would be filed in the future. In early 1994, GAF Building Materials Corporation, an indirect subsidiary of GAF, formed a new corporation as a wholly-owned subsidiary known as Building Materials Corporation of America. Pursuant to that transaction, BMCA received substantially all of the assets of GAF's roofing products business and expressly assumed $204 million of asbestos-related liability, with G-I indemnifying BMCA against any additional such liability. BMCA, also an indirect subsidiary of G-I Holdings, is the primary operating subsidiary and principal asset of G-I Holdings. In early 2007, the Debtors, the Committee and the Legal Representative commenced mediation under the auspices of former United States District Judge Nicholas H. Politan in an effort to resolve the asbestos-related lawsuits. Subsequently, the Parties outlined the principal terms of a global settlement and endeavored to complete a final global settlement with comprehensive documentation in the form of a proposed Chapter 11 plan and its ancillary documents. To preserve the status quo, the Parties mutually agreed to request a stay of all litigation which would be covered under the final global settlement from this Court and other courts of competent jurisdiction. Although lengthy and initially unsuccessful, the negotiations continued until the parties reached a settlement culminating in an agreement in early August 2008. On Aug. 21, 2008, the Parties filed the Joint Plan of Reorganization of G-I Holdings Inc. and ACI Inc. Pursuant to Chapter 11 of the Bankruptcy Code that implemented the Global Settlement of all asbestos-related lawsuits naming G-I Holdings and any other related entities as defendant(s). The Joint Plan of Reorganization provided for the creation of an asbestos trust pursuant to Section 524(g) of the Bankruptcy Code, to which all asbestos-related lawsuits against the Debtors now and in the future would be channeled. Pursuant to the Global Settlement, the Asbestos Trust would assume the Debtors' liability for asbestos- related lawsuits, in exchange for cash on the effective date of the Joint Plan of Reorganization in an amount not to exceed $215 million, and a note in the amount of $560 million issued by the reorganized Debtors and secured by a letter of credit. The Bankruptcy Court and Chief Judge Garrett Brown of the U.S. District Court for the District of New Jersey, by Order dated Nov. 12, 2009, jointly approved the Debtors' Eighth Amended Joint Plan of Reorganization. GARDENS REGIONAL: Creditors' Panel Hires Bienert as Special Atty. ----------------------------------------------------------------- The Official Committee of Unsecured Creditors of Gardens Regional Hospital and Medical Center, Inc., seeks authorization from the U.S. Bankruptcy Court for the Central District of California to retain Bienert Miller & Katzman, PLC as special counsel to the Committee. The Committee intends to investigate the extent, validity, and priority of the alleged liens of the Debtor's alleged secured creditors, including RollinsNelson Grp, LLC; Sycamore Health Care Services, LLC; Roxbury Healthcare Services, LLC; and Harbor-Gardens Capital I, LLC. The Committee seeks to retain Bienert as special counsel for the limited purpose of working in conjunction with Sills Cummis & Gross, P.C., to do these tasks: a. undertake informal and formal discovery of the Debtor's alleged secured creditors and any related parties with respect to the extent, validity, and priority of their alleged liens and any related issues; b. prepare necessary applications, responses, objections, orders, reports, and other legal papers relating to the Investigation; c. represent the Committee in any and all matters relating to the Investigation; d. assist the Committee in its analysis of the materials obtained in and legal issues relating to the Investigation; and e. perform any and all other legal services for the Committee that may be necessary or desirable in this case with respect to the Investigation. Bienert will be paid at these hourly rates: Steven Jay Katzman $725 Anthony R.Bisconti $450 Attorneys $365-$800 Paralegals $200-$235 Interim payment of Bienert and other attorneys -- Sills Cummis & Gross, P.C., and Lobel Weiland Golden Friedman, LLP -- will be capped at a combined $50,000 per month, with payment of any allowed fees in excess of $50,000 per month deferred until confirmation of a plan in the bankruptcy case, dismissal of the bankruptcy case, or approval of a trustee's final report if the case is converted to a case under Chapter 7 of the Bankruptcy Code. The cap is limited to professional fees and does not include incurred expenses. Bienert will also be reimbursed for reasonable out-of-pocket expenses incurred. Steven J. Katzman, member of the law firm of Bienert Miller Katzman, PLC, assured the Court that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtor and its estates. Bienert can be reached at: Steven J. Katzman, Esq. Anthony R. Bisconti, Esq. BIENERT, MILLER & KATZMAN, PLC 903 Calle Amanecer, Suite 350 San Clemente, CA 92673 Tel: (949) 226-6776 Fax: (949) 369-3701 E-mail: skatmzan@bmkattorneys.com tbisconti@bmkattorneys.com About Gardens Regional Gardens Regional Hospital and Medical Center, Inc., fka Tri-City Regional Medical Center, leases a 137- bed, acute care hospital doing business at 21530 South Pioneer Boulevard, Hawaiian Gardens, Los Angeles, California. The Debtor provides a full range of inpatient and outpatient services, including, but not limited to, medical acute care, general surgical services, bariatric surgery services (for weight loss), spine surgery services, orthopedic and sports medicine and joint replacement services, wound care and pain management services, physical therapy, respiratory therapy,outpatient ambulatory services, diagnostic services, radiology andinpatient/outpatient imaging services, laboratory and pathologyservices, geriatric services, and community wellness and education programs. The Debtor filed for Chapter 11 bankruptcy protection (Bankr. C.D.Calif. Case No. 16-17463) on June 6, 2016, estimating its assets at between $1 million and $10 million, and liabilities at between $10 million and $50 million. The petition was signed by Brian Walton, chairman of the Board. Judge Ernest M. Robles presides over the case. Samuel R Maizel, Esq., and John A Moe, Esq., at Dentons US LLP serves as the Debtor's bankruptcy counsel. On July 5, 2016, the Office of the United States Trustee filed a notice of appointment of the official committee of unsecured creditors. The Committee tapped Sills Cummis & Gross P.C. and Lobel Weiland Golden Friedman LLP, to serve as attorneys. The Committee hired Bienert Miller $ Katzman, PLC, to act as special counsel. GARDENS REGIONAL: Spine Surgical, Gardena Removed from Committee ---------------------------------------------------------------- The Office of the U.S. Trustee on September 7 removed Spine Surgical Implants Inc. and Gardena Hospital L.P. as members of the official committee of unsecured creditors of Gardens Regional Hospital and Medical Center, Inc. The remaining members of the committee are: (1) Rob Speeney Cardinal Health 200, LLC 7000 Cardinal Place Dublin, OH 43017 Tel: (614) 533-3125 Email: rob.speeney@cardinalhealth.com (2) Robert Zadek Lenders Funding, LLC 1001 Bridgeway, No. 721 Sausalito, CA 94965 Tel: (415) 227-3585 Email: rzadek@buchalter.com About Gardens Regional Hospital Gardens Regional Hospital and Medical Center, Inc., fka Tri-City Regional Medical Center, leases a 137- bed, acute care hospital doing business at 21530 South Pioneer Boulevard, Hawaiian Gardens, Los Angeles, California. The Debtor provides a full range of inpatient and outpatient services, including, but not limited to, medical acute care, general surgical services, bariatric surgery services (for weight loss), spine surgery services, orthopedic and sports medicine and joint replacement services, wound care and pain management services, physical therapy, respiratory therapy, outpatient ambulatory services, diagnostic services, radiology and inpatient/outpatient imaging services, laboratory and pathology services, geriatric services, and community wellness and education programs. The Debtor filed for Chapter 11 bankruptcy protection (Bankr. C.D. Calif. Case No. 16-17463) on June 6, 2016, estimating its assets at between $1 million and $10 million, and liabilities at between $10 million and $50 million. The petition was signed by Brian Walton, chairman of the Board. Judge Ernest M. Robles presides over the case. Samuel R Maizel, Esq., and John A Moe, Esq., at Dentons US LLP serves as the Debtor's bankruptcy counsel. GR HOSPITALITY: Wants to Use Lakeland West Cash Collateral ---------------------------------------------------------- GR Hospitality Management, LLC asks the U.S. Bankruptcy Court for the Northern District of Texas for authorization to use Lakeland West Capital XXV, LLC's cash collateral. The Debtor intends to use the cash collateral to continue the its ongoing operations at the Best Western Plus Graham Inn located in Graham, Texas. The Debtor contends that it has an immediate need to use the cash collateral to enable it to pay its ongoing expenses, generate additional income and to propose a plan in its Chapter 11 case. The Debtor tells the Court that it can adequately protect the interests of Lakeland West by providing it with co-extensive post-petition liens, a priority claim in the Chapter 11 bankruptcy case, and cash flow payments, which is the greater of $10,000 or excess cash flow after payment of expenses. The Debtor's proposed One-Month Budget projected total expenses amounting to $76,210. A full-text copy of the Final Cash Collateral Order, dated September 1, 2016, is available at http://tinyurl.com/j3kvjtz About GR Hospitality GR Hospitality Management, LLC, operates the Best Western Plus Graham Inn located in Graham, Tex. The Debtor filed a chapter 11 petition (Bankr. N.D. Tex. Case No. 16-70179) on June 6, 2016. The petition was signed by Kirnbir S. Grewal, president. The Debtor is represented by Joyce W. Lindauer, Esq. at Joyce W. Lindauer Attorney, PLLC. The case is assigned to Judge Harlin DeWayne Hale. At the time of the filing, the Debtor estimated its assets and liabilities at less than $10 million. A list of the Debtor's five largest unsecured creditors is available for free at http://bankrupt.com/misc/txnb16-70179.pdf GREAT BASIN: Had 64.27M Outstanding Common Shares as of Sept. 9 --------------------------------------------------------------- On Sept. 6 to 7, 2016, certain holders of the 2015 Notes were issued shares of Great Basin Scientific, Inc.'s common stock pursuant to Section 3(a)(9) of the United States Securities Act of 1933, (as amended) in connection with the pre-installment amount converted for the amortization date of Sept. 30, 2016. In connection with the pre-installments, the Company issued 4,500,000 shares of common stock upon the conversion of $900,000 principal amount of 2015 Notes at a conversion price of $0.20. As of Sept. 9, 2016, a total principal amount of $10,967,364 of the 2015 Notes has been converted into shares of common stock and $11,132,636 principal remains to be converted, subject to deferrals. A total of $11.3 million of the proceeds from the 2015 Notes has been released to the Company including $4.6 million at closing and $6.7 million from the restricted cash accounts. $7.1 million remains in the restricted accounts to be released to the Company upon future installments. The Company previously filed an 8-K on Sept. 2, 2016, and reported 59,774,986 shares outstanding, therefore as of Sept. 9, 2016, there are 64,274,986 shares of common stock issued and outstanding. About Great Basin Great Basin Scientific is a molecular diagnostic testing company focused on the development and commercialization of its patented, molecular diagnostic platform designed to test for infectious disease, especially hospital-acquired infections. The Company believes that small to medium sized hospital laboratories, those under 400 beds, are in need of simpler and more affordable molecular diagnostic testing methods. The Company markets a system that combines both affordability and ease-of-use, when compared to other commercially available molecular testing methods, which the Company believes will accelerate the adoption of molecular testing in small to medium sized hospitals. The Company's system includes an analyzer, which it provides for its customers' use without charge in the United States, and a diagnostic cartridge, which the Company sells to its customers. Great Basin reported a net loss of $57.9 million in 2015 following a net loss of $21.7 million in 2014. As of March 31, 2016, Great Basin had $27.6 million in total assets, $70.99 million in total liabilities, and a total stockholders' deficit of $43.4 million. Mantyla McReynolds, LLC, in Salt Lake City, Utah, 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 incurred substantial losses from operations causing negative working capital and negative operating cash flows. These issues raise substantial doubt about its ability to continue as a going concern. GREEN PLAINS: Egan-Jones Cuts LC Sr. Unsec. Debt Rating to B ------------------------------------------------------------ Egan-Jones Ratings Company lowered the local currency senior unsecured rating on debt issued by Green Plains Inc. to B from B+ on Aug. 25, 2016, and the foreign currency senior unsecured rating on the Company to B from BB+. EJR also downgraded the commercial paper rating on the Company to B. Green Plains Inc. is an American company based in Omaha, Nebraska that was founded in 2004. It is an ethanol fuel producer. GUIDED THERAPEUTICS: Amends Current Report to Correct Typo ---------------------------------------------------------- Guided Therapeutics Corporation has amended its current report on Form 8-K dated Sept. 6, 2016, to correct a typographical error in the amount cited in the first sentence of the second of Item 1.01 of the Original Form 8-K, which is corrected to be "$0.10". On Sept. 6, 2016, the Company entered into a royalty agreement with John E. Imhoff and Dolores M. Maloof pursuant to which the Company sold to Imhoff and Maloof a royalty of future sales of the Company's single-use cervical guides for its LuViva Advanced Cervical Scan non-invasive cervical cancer detection device. Under the terms of the royalty agreement, and for consideration of $50,000 received by the Company from Imhoff and Maloof, the Company will pay to Imhoff and Maloof an aggregate perpetual royalty equal to $0.10 for each Disposable that the Company invoices and receives payment, or is sold by a third party pursuant to a licensing arrangement with the Company, from the date of this Agreement, net of any returns of Disposables. The Company will pay the royalty on a quarterly basis, no later than 45 days following the end of each fiscal quarter during the Royalty Term, based on Disposable Sales, net of returns of Disposables, for that quarter. At any time prior to Oct. 2, 2016, the Company may, in its sole discretion, upon cash payment to Imhoff and Maloof of $50,000, permanently reduce the royalty rate per Disposable Sale $0.033. If payment is not made by Oct. 2, 2016, the royalty rate per Disposable Sale shall permanently increase to $0.20. John E. Imhoff, is a member of the Board of Directors of the Company. 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 June 30, 2016, Guided Therapeutics had $2.31 million in total assets, $9.44 million in total liabilities, and a total stockholders' deficit of $7.13 million. GYPSUM MANAGEMENT: S&P Raises CCR to 'B+', Outlook Stable --------------------------------------------------------- S&P Global Ratings said it raised its corporate credit rating on Tucker, Ga.-based Gypsum Management & Supply Inc. to 'B+' from 'B'. The outlook is stable. At the same time, S&P raised the issue-level rating on the company's first-lien term loan to 'B+' (in line with the 'B+' corporate credit rating) from 'B'. The recovery rating remains unchanged at '3', which indicates S&P's expectation of meaningful (50%-70%; upper half of the range) recovery in the event of a payment default. "The stable outlook reflects our expectation that Gypsum's forecast 2017 leverage will remain within the aggressive financial risk profile category, with debt to EBITDA between 4x and 4.5x and FFO to debt ranging from 12%-20%," said S&P Global Ratings credit analyst Kimberly Garen. "The outlook also reflects our expectation that liquidity will remain adequate to meet all of the company's obligations and that availability under the secured revolving credit facility will be adequate to fund working capital and capital spending requirements." S&P views a downgrade to be unlikely over the next 12 months based on S&P's expectation for favorable market conditions for Gypsum's business over that timeframe. However, S&P would lower its rating if the U.S. housing recovery stalled, resulting in reduced EBITDA and leverage trending toward 5x. S&P could also lower its rating if the company assumed a more aggressive financial policy incorporating debt financed dividends, acquisitions, or share repurchases such that debt leverage approached 5x. S&P is unlikely to upgrade the company over the next year given its continued majority ownership by its financial sponsor and debt leverage above 4x, commensurate with an aggressive financial risk profile. However, S&P could consider an upgrade if the company sustained debt to leverage at 3x or below and the financial sponsor divested its investment to less than a controlling position. HALCON RESOURCES: Amends Certificate of Incorporation & Bylaws -------------------------------------------------------------- Upon consummation of its previously disclosed plan of reorganization, Halcon Resources Corporation amended and restated its certificate of incorporation to provide for: (i) a classified board structure; (ii) the right of removal of directors with or without cause by stockholders; and (iii) a restriction on the Company from issuing any non-voting equity securities in violation of Section 1123(a)(6) of the Bankruptcy Code. The Company also amended its bylaws to provide for (i) a classified board structure and (ii) majority voting for the election of directors, except if the number of director nominees exceeds the number of directors to be elected at a meeting of stockholders, such election will be by plurality voting. 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. Halcon Resources completed its financial restructuring and emerged from its pre-packaged Chapter 11 bankruptcy cases on Sept. 9, 2016. All of the conditions under its Plan of Reorganization, which was confirmed by the US Bankruptcy Court for the District of Delaware on Sept. 8, 2016, have been satisfied or otherwise waived in accordance with the terms of the Restructuring Plan. HANISH LLC: Can Access Cash Held by Phoenix Until Nov. 9 -------------------------------------------------------- Judge Bruce A. Harwood of the U.S. Bankruptcy Court for the District of New Hampshire authorized Hanish, LLC to use Phoenix REO, LLC's cash and non-cash Collateral. The Debtor's use of cash collateral was limited solely for the purpose of paying its ordinary and necessary business expenses as stated in the approved Budget, through November 9, 2016. The Debtor's use of cash collateral is subject to these terms: (a) Phoenix is granted a security interest, to the extent of any diminution in the value of the Lender’s cash and non-cash Collateral, in all of the Debtor’s post-petition assets. (b) The Debtor is directed to maintain all necessary insurance and to pay any and all taxes, municipal charges, or other amounts accruing upon or with respect to the Collateral. (c) Beginning on June 1, 2016, the Debtor is required to make monthly payments to Phoenix in an amount equal to $20,000. A further hearing on the Debtor's use of cash collateral is scheduled on November 9, 2016 at 1:30 p.m. A full-text copy of the Final Cash Collateral Order, dated September 1, 2016, is available at https://is.gd/zYNwco Phoenix REO, LLC is represented by: Alexander G. Rheaume, Esq. Riemer & Braunstein LLP Three Center Plaza Boston, Massachusetts 02108 Email: arheaume@riemerlaw.com About Hanish, LLC Hanish, LLC owns and operates a 59-unit Fairfield Inn & Suites by Marriott in Hooksett, N.H. The company sought chapter 11 protection (Bankr. D. N.H. Case No. 16-10602) on Apr. 26, 2016, and is represented by Steven M. Notinger, Esq., at Notinger Law, PLLC, in Nashua, N.H. The petition was signed by Nayan Patel, managing member. Judge Bruce A. Harwood presides over the case. The Debtor estimated its assets and debts at less than $10 million at the time of the filing. A list of the Debtor's 20 largest unsecured creditors is available for free at http://bankrupt.com/misc/nhb16-10602.pdf HANJIN SHIPPING: Secures $45M, More May Take "Considerable Time" ---------------------------------------------------------------- The American Bankruptcy Institute, citing Hyunjoo Jin and Cecile Lefort of Reuters, reported that the chairman of Hanjin Group transferred 40 billion won ($36 million) to Hanjin Shipping (117930.KS) on Sept. 14 to help unload cargo stranded on the troubled shipper's vessels, a spokesman said, but regulators warned securing further funds could take "considerable time." According to the report, the parent of Hanjin Shipping pledged to raise 100 billion won to help rescue cargo in the wake of the collapse of the world's seventh-biggest container shipper, including the 40 billion won from Chairman Cho Yang-ho. About $9 million pledged by Choi Eun-young, a former chairwoman of Hanjin Shipping, has also come in, the report related, citing the shipper. Around $14 billion of cargo has been tied up globally as ports, tugboat operators and cargo handling firms worried about not being paid refused to work for Hanjin, which filed for receivership in a Seoul court on Aug 31, the report further related. Goods started to move as workers in California unloaded a second Hanjin ship, the Hanjin Boston, at the Port of Los Angeles on Sept. 14, the report said, citing industry officials. Hanjin Shipping submitted to a South Korean court that it could take an estimated 173 billion won ($154.5 million) to unload all stranded cargo, a Seoul Central District Court judge told Reuters. About Hanjin Shipping Hanjin Shipping Co., Ltd., is mainly engaged in the transportation business through containerships, transportation business through bulk carriers and terminal operation business. The Debtor is a stock-listed corporation with a total of 245,269,947 issued shares (common shares, KRW 5000 per share) and paid-in capital totaling KRW 1,226,349,735,000. Of these shares 33.23% is owned by Korean Air Lines Co., Ltd., 3.08% by Debtor and 0.34% by employee shareholders' association. The Company operates approximately 60 regular lines worldwide, with 140 container or bulk vessels transporting over 100 million tons of cargo per year. It also operates 13 terminals specialized for containers, two distribution centers and six Off Dock Container Yards in major ports and inland areas around the world. The Company is a member of "CKYHE," a global shipping conference and also a partner of "The Alliance," another global shipping conference to be launched in April 2017. Hanjin Shipping listed total current liabilities of KRW 6,028,543 million and total current assets of KRW 6,624,326 million as of June 30, 2016. As a result of the severe lack of liquidity, Hanjin applied to the Seoul Central District Court 6th Bench of Bankruptcy Division for the commencement of rehabilitation under the Debtor Rehabilitation and Bankruptcy Act on Aug. 31, 2016. On the same day, it requested and was granted a general injunction and the preservation of disposition of the Company's assets. The Korean Court's decision to commence the rehabilitation was made on Sept. 1, 2016. Tai-Soo Suk was appointed as the Debtor's custodian. The Chapter 15 case is pending in the U.S. Bankruptcy Court for the District of New Jersey (Bankr. D.N.J. Case No. 16-27041) before Judge John K. Sherwood. Cole Schotz P.C. serves as counsel to Tai-Soo Suk, the Chapter 15 petitioner and the duly appointed foreign representative of Hanjin Shipping. HARRINGTON & KING: Seeks to Extend Plan Filing Period to Jan. 2017 ------------------------------------------------------------------ The Harrington & King Perforating Co., Inc. and Harrington & King South, Inc. request the U.S. Bankruptcy Court for the Northern District of Illinois to extend the Debtors' exclusive period within which to file a plan to January 6, 2017, and the Debtors' period to obtain acceptances to March 7, 2017. The Debtors tell the Court that they are in the midst of stabilizing their businesses and making operational improvements which will form one of the bases of a plan of reorganization, the results of which will materially affect the Debtors' plan. The Debtors further tell the Court that they cannot propose a plan without knowing the universe of claims which are filed in their case considering that the general bar date is set for Oct. 5, 2016, and the bar date for governmental units is Nov. 3, 2016, where both periods are set after the exclusive periods end. About The Harrington & King Perforating Co., Inc. The Harrington & King Perforating Co., Inc. and Harrington & King South Inc. are in the business of manufacturing perforating metal sheets and rolled coils of varying gauges and types to produce hole patterns of various sizes, shapes, and spacing. Most of the work is done to customer specifications and consists of high value-added jobs, not typical of most metal punching. The products are used in automotive, acoustics, architecture, food and pharmaceutical straining and filtering, interior design, manufacturing, safety flooring, pollution control, transportation and mining cleaning and grading, electronics and other fields. The Debtors sought protection under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Ill. Case Nos. 16-15650 and 16-15651) on May 7, 2016. The petitions were signed by Greg McCallister, chief restructuring officer and chief operating officer. The cases are jointly administered under Case No. 16-15650. The cases are assigned to Judge Deborah L. Thorne. The Debtors estimated both assets and liabilities in the range of $1 million to $10 million. The Debtors are represented by William J. Factor, Esq., at FactorLaw. HOOPER HOLMES: Liquidity Concerns Raise Going Concern Doubt ----------------------------------------------------------- Hooper Holmes, Inc., filed its quarterly report on Form 10-Q, disclosing a net loss of $2.46 million on $7.64 million of revenues for the three months ended June 30, 2016, compared with a net loss of $3.36 million on $7.66 million of revenues for the same period in the prior year. The Company's balance sheet at June 30, 2016, showed $14.63 million in total assets, $15.10 million in total liabilities, and a stockholders' equity of $477,000. The uncertainty regarding the Company's ability to generate sufficient cash flows and liquidity to fund operations raises substantial doubt about its ability to continue as a going concern. These financial statements do not include any adjustments that might result from the outcome of this uncertainty. A copy of the Form 10-Q is available at: https://is.gd/JcVHAk Hooper Holmes, Inc., provides health risk assessment services and wellness as well as health improvement services with its acquisition of Accountable Health Solutions, Inc. (AHS). The Olathe, Kansas-based Company provides these services to individuals as part of health and wellness programs offered through corporate and government employers, and to clinical research organizations. HORSEHEAD HOLDING: Court Confirms 2nd Amended Plan -------------------------------------------------- BankruptcyData.com reported that the U.S. Bankruptcy Court confirmed Horsehead Holdings' Second Amended Joint Plan of Reorganization with technical modifications. As previously reported, "On the Effective Date, Reorganized Horsehead shall issue New Common Equity (1) Holders of Secured Notes Claims and Unsecured Notes Claims; and (2) to the applicable Plan Sponsors pursuant to the Plan and the UPA. On the Effective Date, the Additional Capital Commitment Participants and Reorganized Horsehead shall be bound by the purchase obligation and issuance obligations, respectively, with respect to the Additional Capital Commitment Units, in each case, pursuant to the terms of the UPA. On the Effective Date, the New Limited Liability Company Agreement shall be adopted by Reorganized Horsehead and shall be deemed to be valid, binding and enforceable in accordance with its terms, and each holder of New Common Equity shall be fully bound thereby in all respects." About Horsehead Holding Corp. Horsehead Holding Corp. is the parent company of Horsehead Corporation, a U.S. producer of specialty zinc and zinc-based products and a recycler of electric arc furnace dust; The International Metals Reclamation Company, LLC, a leading recycler of metals-bearing wastes and a leading processor of nickel-cadmium (NiCd) batteries in North America; and Zochem Inc., a zinc oxide producer located in Brampton, Ontario. Horsehead, headquartered in Pittsburgh, Pa., has seven facilities throughout the U.S. and Canada. The Debtors currently employ approximately 730 full-time individuals. Horsehead Holding Corp., Horsehead Corporation, Horsehead Metal Products, LLC, The International Metals Reclamation Company, LLC, and Zochem Inc. filed Chapter 11 bankruptcy petitions (Bankr. D. Del. Case Nos. 16-10287 to 16-10291) on Feb. 2, 2016. The Petition was signed by Robert D. Scherich as vice president and chief financial officer. Judge Christopher S. Sontchi is assigned to the case. The Debtors have engaged Kirkland & Ellis LLP as general counsel, Pachulski Stang Ziehl & Jones LLP as local counsel, RAS Management Advisors, LLC, as financial advisor, Lazard Middle Market LLC as investment banker, Epiq Bankruptcy Solutions, LLC, as claims and noticing agent and Aird & Berlis LLP as Canadian counsel. The Debtors disclosed total assets of $1 billion and total liabilities of $544.6 million. As of the Petition Date, the Debtors' consolidated long-term debt obligations totaled approximately $420.7 million. Andrew Vara, acting U.S. trustee for Region 3, appointed seven creditors of Horsehead Holding Corp. to serve on the official committee of unsecured creditors. Lowenstein Sandler LLP serves as counsel to the Committee, while Drinker Biddle & Reath LLP serves as co-counsel. The Unsecured Creditors Committee is represented by Kenneth A. Rosen, Esq., Bruce Buechler, Esq., and Philip J. Gross, Esq., at Lowenstein Sandler LLP. The U.S. Trustee's office appointed Aquamarine Capital and six others to serve on Horsehead Holding Corp.'s committee of equity security holders. The Equity tapped Nastasi Partners as its bankruptcy co-counsel; Richards, Layton & Finger P.A. as its co-counsel; and SSG Capital Advisors, LLC as its financial advisor. HOVNANIAN ENTERPRISES: Incurs $474,000 Net Loss in Third Quarter ---------------------------------------------------------------- Hovnanian Enterprises, Inc., filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $474,000 on $717 million of total revenues for the three months ended July 31, 2016, compared to a net loss of $7.68 million on $541 million of total revenues for the three months ended July 31, 2015. For the nine months ended July 31, 2016, the Company reported a net loss of $25.1 million on $1.94 billion of total revenues compared to a net loss of $41.6 million on $1.45 billion of total revenues for the nine months ended July 31, 2015. As of July 31, 2016, Hovnanian had $2.38 billion in total assets, $2.54 billion in total liabilities and a total stockholders' deficit of $152 million. Results Highlights Total revenues were $717 million in the third quarter of fiscal 2016, an increase of 32.6% compared with $540.6 million in the third quarter of fiscal 2015. For the nine months ended July 31, 2016, total revenues increased 33.8% to $1.95 billion compared with $1.46 billion in the first nine months of the prior year. Total SG&A was $66.6 million, or 9.3% of total revenues, a 330 basis point improvement during the third quarter of fiscal 2016 compared with $67.9 million, or 12.6% of total revenues, in last year's third quarter. Total SG&A was $199.4 million, or 10.2% of total revenues, a 360 basis point improvement for the first nine months of fiscal 2016 compared with $201.5 million, or 13.8% of total revenues, in the first nine months of the prior year. Total interest expense as a percentage of total revenues was 7.2% during both the third quarter of fiscal 2016 and the third quarter of fiscal 2015. For the nine months ended July 31, 2016, total interest expense as a percentage of total revenues declined 70 basis points to 6.9% compared with 7.6% during the same period a year ago. Homebuilding gross margin percentage, before interest expense and land charges included in cost of sales, was 16.9% for the third quarter ended July 31, 2016 compared with 17.8% for the third quarter of fiscal 2015 and 16.1% for the second quarter of fiscal 2016. During the first nine months of fiscal 2016, homebuilding gross margin percentage, before interest expense and land charges included in cost of sales, was 16.5% compared with 17.4% in the same period of the previous year. Income before income taxes in the third quarter of fiscal 2016 was $1.1 million compared with a loss before income taxes of $10.0 million in the prior year's third quarter. For the first nine months of fiscal 2016, the loss before income taxes was $29.7 million compared with a loss before income taxes of $59.2 million during the first nine months of fiscal 2015. Income before income taxes, excluding land-related charges, in the third quarter of fiscal 2016 was $2.7 million compared with a loss before income taxes, excluding land-related charges, of $8.9 million in the prior year's third quarter. For the first nine months of fiscal 2016, the loss before income taxes, excluding land-related charges, was $6.8 million compared with a loss before income taxes, excluding land-related charges, of $51.5 million during the first nine months of fiscal 2015. For the third quarter of fiscal 2016, Adjusted EBITDA was $56.3 million compared with $32.2 million during the third quarter of 2015, a 74.8% increase. For the first nine months of fiscal 2016, Adjusted EBITDA increased 105.1% to $134.8 million compared with $65.7 million during the first nine months of fiscal 2015. Adjusted EBITDA to interest incurred was 1.40x for third quarter of fiscal 2016 compared with 0.77x for the same quarter last year. For the nine-month period ended July 31, 2016, Adjusted EBITDA to interest incurred was 1.07x compared with 0.53x for the same period one year ago. Consolidated active selling communities decreased 15.5% from 206 communities at the end of the prior year's third quarter to 174 communities as of July 31, 2016, which was impacted by the sale of ten communities in Minneapolis and Raleigh and the conversion of four consolidated communities into unconsolidated joint venture communities. As of the end of the third quarter of fiscal 2016, active selling communities, including unconsolidated joint ventures, decreased 9.8% to 193 communities compared with 214 communities at July 31, 2015. Consolidated net contracts per active selling community increased 13.5% to 8.4 net contracts per active selling community for the third quarter of fiscal 2016 compared with 7.4 net contracts per active selling community in the third quarter of fiscal 2015. Net contracts per active selling community, including unconsolidated joint ventures, increased 3.9% to 8.0 net contracts per active selling community for the quarter ended July 31, 2016, compared with 7.7 net contracts, including unconsolidated joint ventures, per active selling community in the third quarter of fiscal 2015. The dollar value of consolidated net contracts decreased 4.3% to $593.0 million for the three months ended July 31, 2016, compared with $619.4 million during the same quarter a year ago. The dollar value of net contracts, including unconsolidated joint ventures, during the third quarter of fiscal 2016 decreased 8.8% to $633.3 million compared with $695 million in last year’s third quarter. The dollar value of consolidated net contracts increased 8.5% to $1.98 billion for the first nine months of fiscal 2016 compared with $1.82 billion in the first nine months of the previous year. The dollar value of net contracts, including unconsolidated joint ventures, for the nine months ended July 31, 2016 increased 6.3% to $2.09 billion compared with $1.97 billion in the first nine months of fiscal 2015. The number of consolidated net contracts, during the third quarter of fiscal 2016, decreased 4.3% to 1,467 homes compared with 1,533 homes in the prior year's third quarter. In the third quarter of fiscal 2016, the number of net contracts, including unconsolidated joint ventures, decreased 7.3% to 1,537 homes from 1,658 homes during the third quarter of fiscal 2015. The number of consolidated net contracts, during the nine-month period ended July 31, 2016, increased 3.5% to 4,810 homes compared with 4,648 homes in the same period of the previous year. During the first nine months of fiscal 2016, the number of net contracts, including unconsolidated joint ventures, was 4,991 homes, an increase of 1.5% from 4,918 homes during the first nine months of fiscal 2015. As of July 31, 2016, the dollar value of contract backlog, including unconsolidated joint ventures, was $1.48 billion, an increase of 7.7% compared with $1.37 billion as of July 31, 2015. The dollar value of consolidated contract backlog, as of July 31, 2016, increased 3.8% to $1.31 billion compared with $1.26 billion as of July 31, 2015. As of July 31, 2016, the number of homes in contract backlog, including unconsolidated joint ventures, decreased 1.3% to 3,232 homes compared with 3,275 homes as of July 31, 2015. The number of homes in consolidated contract backlog, as of July 31, 2016, decreased 4.1% to 2,969 homes compared with 3,097 homes as of the end of the third quarter of fiscal 2015. Consolidated deliveries were 1,574 homes in the third quarter of fiscal 2016, an 11.8% increase compared with 1,408 homes in the third quarter of fiscal 2015. For the three months ended July 31, 2016, deliveries, including unconsolidated joint ventures, increased 10.3% to 1,627 homes compared with 1,475 homes in the third quarter of the prior year. Consolidated deliveries were 4,594 homes in the first nine months of fiscal 2016, a 21.5% increase compared with 3,780 homes in the same period in fiscal 2015. For the nine months ended July 31, 2016, deliveries, including unconsolidated joint ventures, increased 19.0% to 4,740 homes compared with 3,984 homes in the first nine months of the prior year. The contract cancellation rate, including unconsolidated joint ventures, for the third quarter of fiscal 2016 was 22%, compared with 20% in the third quarter of fiscal 2015. The valuation allowance was $635.4 million as of July 31, 2016. The valuation allowance is a non-cash reserve against the tax assets for GAAP purposes. For tax purposes, the tax deductions associated with the tax assets may be carried forward for 20 years from the date the deductions were incurred. Management Comments "During our third quarter we made progress towards our goal of improving our profitability by increasing our revenues 33%, growing Adjusted EBITDA by 75%, improving our Adjusted EBITDA coverage to 1.40x from 0.77x, and achieving a pretax profit," stated Ara K. Hovnanian, chairman of the Board, president and chief executive officer. "However, we are fully aware that there is even more work to do in order to return the company to higher levels of sustainable profits. We are anticipating a solid fourth quarter with income before income taxes, excluding land related charges, gains or losses on extinguishment of debt and other non-recurring items such as legal settlements, expected to be between $32 million and $42 million." "After paying off $320 million of debt since October 15, 2015, we ended the third quarter with $187.7 million of liquidity. Subsequent to the end of the third quarter, we issued $150 million of new debt to refinance debt maturing in 2017. Completing this debt transaction increases our liquidity and allows us to continue land investments that will help return us to higher levels of profitability in the future," concluded Mr. Hovnanian. The Company's quarterly report on Form 10-Q is available from the SEC Web site at https://is.gd/jEnFQJ About Hovnanian Enterprises Red Bank, New Jersey-based Hovnanian Enterprises, Inc. (NYSE: HOV) -- http://www.khov.com/-- founded in 1959 by Kevork S. Hovnanian, is one of the nation's largest homebuilders with operations in Arizona, California, Delaware, Florida, Georgia, Illinois, Kentucky, Maryland, Minnesota, New Jersey, New York, North Carolina, Ohio, Pennsylvania, South Carolina, Texas, Virginia and West Virginia. The Company's homes are marketed and sold under the trade names K. Hovnanian Homes, Matzel & Mumford, Brighton Homes, Parkwood Builders, Town & Country Homes, Oster Homes and CraftBuilt Homes. As the developer of K. Hovnanian's Four Seasons communities, the Company is also one of the nation's largest builders of active adult homes. Hovnanian Enterprises reported a net loss of $16.1 million on $2.14 billion of total revenues for the year ended Oct. 31, 2015, compared to net income of $307 million on $2.06 billion of total revenues for the year ended Oct. 31, 2014. * * * As reported by the TCR on April 22, 2016, Moody's Investors Service downgraded the Corporate Family Rating of Hovnanian Enterprises, Inc. to Caa2 and Probability of Default Rating to Caa2-PD. The downgrade of the Corporate Family Rating reflects Moody's expectation that Hovnanian will need to dispose of assets and seek alternative financing methods in order to meet its upcoming debt maturity wall. Hovnanian carries a 'CCC+' corporate credit rating from S&P Global Ratings. As reported by the TCR on Aug. 3, 2016, Fitch Ratings has affirmed the ratings of Hovnanian Enterprises, Inc. (NYSE: HOV), including the company's Long-Term Issuer Default Rating (IDR) at 'CCC' following the recently announced financing commitments and proposed tender offer for its existing unsecured notes. IMAGEWARE SYSTEMS: Creates Series F Convertible Preferred Stock --------------------------------------------------------------- ImageWare Systems, Inc. filed on Sept. 2, 2016, the Certificate of Designations, Preferences, and Rights of the Series F Convertible Preferred Stock with the Delaware Division of Corporations, designating 2,000 shares of the Company's preferred stock, par value $0.01 per share, as Series F Convertible Preferred Stock. Shares of Series F Preferred rank junior to the Company's Series B Convertible Redeemable Preferred Stock, Series E Convertible Stock and existing indebtedness, and accrue dividends at a rate of 10% per annum, payable on a quarterly basis in shares of the Company's common stock, par value $0.01 per share. Each share of Series F Preferred has a liquidation preference of $1,000 per share, and is convertible, at the option of the holder, into that number of shares of the Company's Common Stock equal to the Liquidation Preference, divided by $1.50. About ImageWare Systems Headquartered in San Diego, California, ImageWare Systems, Inc., is a leader in the emerging market for software-based identity management solutions, providing biometric, secure credential, law enforcement and enterprise authorization. Its "flagship" product is the IWS Biometric Engine. Scalable for small city business or worldwide deployment, the Company's biometric engine is a multi- biometric platform that is hardware and algorithm independent, enabling the enrollment and management of unlimited population sizes. The Company's identification products are used to manage and issue secure credentials, including national IDs, passports, driver licenses, smart cards and access control credentials. Its law enforcement products provide law enforcement with integrated mug shot, fingerprint LiveScan and investigative capabilities. The Company also provides comprehensive authentication security software. Imageware Systems reported a net loss available to common shareholders of $9.59 million on $4.76 million of revenues for the year ended Dec. 31, 2015, compared to a net loss available to common shareholders of $7.99 million on $4.15 million of revenues for the year ended Dec. 31, 2014. As of June 30, 2016, Imageware had $4.56 million in total assets, $4.62 million in total liabilities and a total shareholder's deficit of $68,000. INCYTE CORP: Egan-Jones Hikes Sr. Unsecured Debt Ratings to BB- --------------------------------------------------------------- Egan-Jones Ratings Company raised the senior unsecured ratings on debt issued by Incyte Corp to BB- from B+ on Aug. 22, 2016. Incyte, Corp is a pharmaceutical company based in Alapocas, Delaware. Incyte has one drug, which has been approved by the U.S. Food and Drug Administration and has been prescribed to several thousands of patients in the United States, Jakafi. INT'L MANUFACTURING: Trustee Hires Baker & McKenzie as Counsel -------------------------------------------------------------- Beverly N. McFarland, the appointed Chapter 11 Trustee in the bankruptcy case of International Manufacturing Group, Inc., seeks authority from the U.S. Bankruptcy Court for the Eastern District of California to retain Baker & McKenzie LLP as her special 401(k) counsel, nunc pro tunc to September 1, 2016. Ms. McFarland tells the Court that in the course of the case she will have a need for advice regarding the termination of the Debtor's 401(k) plan. She may also need the firm to assist in drafting termination resolutions, reviewing the safe harbor termination notice prepared by the prototype provider, drafting a letter of instruction to the record keeper/trustee, reviewing any required amendment prepared by the prototype provider that need to be adopted upon termination (e.g., it does not appear the 2016 prototype plan was ever adopted and this should be done prior to termination) and reviewing the form of participant distribution notice. The firm also may provide assistance: * in determining when participants should have fully vested (e.g., was there a partial termination requiring vesting prior to the termination date); * with additional issues related to the bankruptcy; * in determining if any corrections are required; and * in drafting a safe harbor notice or any amendments. B&M has only been retained to provide legal services related to 401(k) plan termination, Ms. McFarland says. B&M's standard hourly rates are: Name Title Hourly Rate ---- ----- ----------- James P. Baker Partner $850 Janel M. Brynda Associate $620 Ajay Athavale Associate $460 B&M will also bill the estate for all reasonable and necessary out-of-pocket expenses incurred as permitted by applicable provisions of the Bankruptcy Code, Bankruptcy Rules and the UST Guidelines. B&M has agreed to bill travel time between San Francisco and Sacramento at 50% of its discounted hourly rates. B&M has also agreed that the fees for its services will not exceed $25,000. B&M also agrees to cap its hourly fee for James P. Baker's services at $550 per hour. As set forth in the Declaration of Mr. Baker, (i) B&M does not have any connections with the Debtor, its creditors, or with the Office of the United States Trustee, or with any person employed in the office of the United States Trustee which would preclude employment, and (ii) does not now hold or represent any interest materially adverse to the interests of the estate or of any class of creditors or equity security holders. The Court will commence a hearing on September 21, 2016, at 10:00 a.m., to consider the firm's hiring. The U.S. Trustee is represented by: Thomas A. Willoughby, Esq. Jason E. Rios, Esq. Jennifer E. Niemann, Esq. FELDERSTEIN FITZGERALD WILLOUGHBY & PASCUZZI LLP 400 Capitol Mall, Suite 1750 Sacramento, CA 95814 Telephone: (916) 329-7400 Facsimile: (916) 329-7435 E-mail: twilloughby@ffwplaw.com jrios@ffwplaw.com jniemann@ffwplaw.com About International Manufacturing Deepal Wannakuwatte, the mastermind of a $150 million Ponzi scheme, put himself and his company, International Manufacturing Group Inc., into Chapter 11 after he pleaded guilty to one count of wire fraud and agreed to a 20-year prison sentence. The bankruptcy filing was part of his plea bargain with federal prosecutors. Mr. Wannakuwatte is the former owner of the Sacramento Capitols tennis team. Mr. Wannakuwatte initiated his personal Chapter 11 case on May 30, 2014. Hank Spacone was appointed as trustee for Wannakuwatte's Chapter 11 estate. Betsy Kathryn Wannakuwatte and Sarah Kathryn Wannakuwatte also have pending Chapter 7 cases. Mr. Wannakuwatte also submitted a Chapter 11 bankruptcy petition for IMG on May 30, 2014 (Bankr. E.D. Cal. Case No. 14-25820) in Sacramento. The case is assigned to Judge Robert S. Bardwil. The Debtor tapped Marc A. Caraska, in Sacramento, as counsel. In June 2014, Beverly N. McFarland was appointed as Chapter 11 trustee for IMG. She tapped Felderstein Fitzgerald Willoughby & Pascuzzi LLP as her bankruptcy counsel; Diamond McCarthy LLP as her special litigation counsel; Gabrielson & Company as accountant; and Karen Rushing as bookkeeper outside the ordinary course of business. The U.S. Trustee for Region 7 appointed a three-member unsecured creditors panel in IMG's case comprising of Byron Younger, Janine Jones, and Steve Whitesides. INT'L TECHNICAL COATINGS: Hires Gavlick as Auctioneer ----------------------------------------------------- International Technical Coatings, Inc., seeks authorization from the U.S. Bankruptcy Court for the District of Arizona to employ Gavlick Machinery Corp., as auctioneer. ITC is steel wire manufacturing business with facilities located in Phoenix, Arizona and Columbus, Ohio. ITC has manufacturing facilities located at 110 S. 41st Avenue, Phoenix, AZ 85009 and 845 Markison Avenue, Columbus OH, 43207. As part and parcel of ITC's business it purchases manufacturing equipment. Sometimes that equipment is no longer necessary for the products that ITC will manufacture, or has been replaced by newer and/or more efficient equipment. In those instances, and consistent with good management, ITC will sell the excess equipment. ITC desires to employ Gavlick to market and sell the property. Gavlick shall receive a commission for all completed sales of products that the firm solicits and procures to company during the Term. Gavlick sales commission for its services shall be the difference between the minimum price set by company and the higher sale price received from the purchaser. No commission shall be paid on handling, freight, taxes, COD charges, insurance, tariffs and duties, rebates, amounts credited for returns, and services. The Debtor is simultaneously hiring Cincinnati Industrial Auctioneers, Inc. to auction certain smaller pieces of equipment on a commission basis. Gavlick can be reach at: Marka Haba Gavlick Machinery Corp. 100 Franklin St. Bristol, CT 06010 Tel: +1 860.589.2900 Fax: +1 860.589.0863 About Int'l Technical Coatings   International Technical Coatings, Inc., is a Phoenix, Arizona-based steel wire manufacturer. It has facilities located in Phoenix, Arizona and Columbus, Ohio.   ITC filed a Chapter 11 bankruptcy petition (Bank. D. Ariz. Case No. 15-14709) on Nov. 18, 2015. John Caldwel, the chairman, signed the petition. Judge Madeleine C. Wanslee is assigned the case.   Bank of America Bank, N.A., which is owed more than $25.7 million in outstanding matured, defaulted loan obligations, applied for the appointment of a receiver over ITC on Oct. 28, 2015. The Maricopa County Superior Court held an initial hearing on the matter on Nov. 4. A final hearing on the appointment of a receiver was scheduled for Nov. 18 at 1:30 p.m. Unable to secure an agreement with the Bank prior to the scheduled hearing, ITC filed for Chapter 11 protection.   In its petition, the Debtor estimated assets of $50 million to $100 million and liabilities of more than $10 million.   The Debtor tapped Osborn Maledon, P.A., as bankruptcy counsel. Morris Anderson & Associates, Ltd., serves as its financial advisor.   The Office of the U.S. Trustee appointed seven creditors to the official committee of unsecured creditors. Stinson Leonard Street, LLP represents the committee. The Law Offices of Michael W. Carmel, Ltd., serves as its conflicts counsel. The Committee retained KRyS Global, USA, as its financial advisor.   Secured creditor Bank of America is represented by Robert J. Miller, Esq., Kyle S. Hirsch, Esq., and Amanda L. Cartwright, Esq., at Bryan Cave LLP.  INT'L TECHNICAL COATINGS: Taps Cincinnati Industrial as Auctioneer ------------------------------------------------------------------ International Technical Coatings, Inc., seeks authorization from the U.S. Bankruptcy Court for the District of Arizona to employ Cincinnati Industrial Auctioneer, Inc., as auctioneer. ITC is steel wire manufacturing business with facilities located in Phoenix, Arizona and Columbus, Ohio. ITC has manufacturing facilities located at 110 S. 41st Avenue, Phoenix, AZ 85009 and 845 Markison Avenue, Columbus OH, 43207. As part and parcel of ITC's business it purchases manufacturing equipment. Sometimes that equipment is no longer necessary for the products that ITC will manufacture, or has been replaced by newer and/or more efficient equipment. In those instances, and consistent with good management, ITC will sell the excess equipment. CIA has agreed to assist the Debtor with the liquidation of the property at one or more public auctions. CIA's commission will be 18% of the gross sale proceeds. In addition, CIA shall be entitled to recover its expenses related to the sale, including costs of marketing, packing, transporting and other expenses, which expenses shall not exceed $25,000. CIA can be reached at: Jerome A. Luggen 2020 Dunlap Street Cincinnati, OH 45214 Phone: 513-241-9701 Fax: 513-241-6760 About Int'l Technical Coatings   International Technical Coatings, Inc., is a Phoenix, Arizona-based steel wire manufacturer. It has facilities located in Phoenix, Arizona and Columbus, Ohio.  ITC filed a Chapter 11 bankruptcy petition (Bank. D. Ariz. Case No. 15-14709) on Nov. 18, 2015. John Caldwel, the chairman, signed the petition. Judge Madeleine C. Wanslee is assigned the case.   Bank of America Bank, N.A., which is owed more than $25.7 million in outstanding matured, defaulted loan obligations, applied for the appointment of a receiver over ITC on Oct. 28, 2015. The Maricopa County Superior Court held an initial hearing on the matter on Nov. 4. A final hearing on the appointment of a receiver was scheduled for Nov. 18 at 1:30 p.m. Unable to secure an agreement with the Bank prior to the scheduled hearing, ITC filed for Chapter 11 protection.   In its petition, the Debtor estimated assets of $50 million to $100 million and liabilities of more than $10 million.   The Debtor tapped Osborn Maledon, P.A., as bankruptcy counsel. Morris Anderson & Associates, Ltd., serves as its financial advisor.   The Office of the U.S. Trustee appointed seven creditors to the official committee of unsecured creditors. Stinson Leonard Street, LLP represents the committee. The Law Offices of Michael W. Carmel, Ltd., serves as its conflicts counsel. The Committee retained KRyS Global, USA, as its financial advisor.   Secured creditor Bank of America is represented by Robert J. Miller, Esq., Kyle S. Hirsch, Esq., and Amanda L. Cartwright, Esq., at Bryan Cave LLP.  ISTAR INC: BlackRock Reports 10% Equity Stake as of Aug. 31 ----------------------------------------------------------- In an amended Schedule 13G filed with the Securities and Exchange Commission, BlackRock, Inc. disclosed that as of Aug. 31, 2016, it beneficially owns 7,287,675 shares of common stock of Istar Inc. representing 10% of the shares outstanding. A full-text copy of the regulatory filing is available for free at: https://is.gd/CY9wSg About iStar Inc. New York-based iStar Inc., formerly known as iStar Financial Inc. (NYSE: SFI) provides custom-tailored investment capital to high-end private and corporate owners of real estate, including senior and mezzanine real estate debt, senior and mezzanine corporate capital, as well as corporate net lease financing and equity. The Company, which is taxed as a real estate investment trust, provides innovative and value added financing solutions to its customers. iStar Inc. reported a net loss allocable to common shareholders of $52.7 million on $515 million of total revenues for the year ended Dec. 31, 2015, compared to a net loss allocable to common shareholders of $33.7 million on $462 million of total revenues for the year ended Dec. 31, 2014. As of June 30, 2016, iStar had $5.21 billion in total assets, $4.17 billion in total liabilities, $7.62 million in redeemable noncontrolling interests, and $1.03 billion in total equity. * * * As reported by the TCR on June 26, 2014, Fitch Ratings had affirmed the Issuer Default Rating (IDR) of iStar Financial at 'B'. The 'B' IDR is driven by improvements in the company's leverage, continued demonstrated access to the capital markets and new sources of growth capital and material reductions in non- performing loans (NPLs). As reported by the TCR on Oct. 5, 2012, Standard & Poor's Ratings Services affirmed its 'B+' long-term issuer credit rating on iStar Financial. In October 2012, Moody's Investors Service upgraded the corporate family rating to 'B2' from 'B3'. The current rating reflects the REIT's success in extending near term debt maturities and improving fundamentals in commercial real estate. The ratings on the October 2012 senior secured credit facility takes into account the asset coverage, the size and quality of the collateral pool, and the term of facility. KATHERINE MONTGOMERY: Bankr. Administrator Objects to Plan Outline ------------------------------------------------------------------ J. Thomas Corbett, the U.S. Bankruptcy Administrator for the Northern District of Alabama, filed an objection to Katherine Montgomery's disclosure statement, claiming that it does not contain adequate information to allow creditors to make an informed judgment about the Chapter 11 plan of reorganization. As reported by the Troubled Company Reporter on July 19, 2016, the Debtor filed with the U.S. Bankruptcy Court for the Northern District of Alabama a Plan under which general unsecured creditors will get 5% of their claims. The Bankruptcy Administrator claims that the Disclosure Statement fails to provide: a. sufficient information concerning the Debtor's financial condition and feasibility of the Plan. The Disclosure Statement provides some information regarding the Debtor's medical practice and past income, however, there is no meaningful discussion of the Debtor's future cash flow and anticipated expenses. Without additional information, creditors will not be able to make an informed decision on whether the Debtor will be able to make the payments under the proposed plan and whether to accept or reject the Plan; b. a meaningful discussion of the Debtor's projected future income and expenses. The Debtor should amend the Disclosure Statement to include detailed financial projections of her cash flow showing anticipated income and expenses, including plan payments, over the life of the plan. The Court should not confirm the Disclosure Statement without financial projections demonstrating the Debtor's ability to make the required plan payments; and c. a meaningful liquidation analysis. The Debtor should amend the Disclosure Statement to attach an exhibit setting forth the Debtor's assets and provide a liquidation analysis as if the assets were liquidated under Chapter 7. The liquidation analysis should at least list the Debtor's assets, discuss the value of each asset, and discuss the liens asserted against each asset. According to the Bankruptcy Administrator, the Debtor's Plan contemplates payment of her disposable income to the class of unsecured claims, but the Debtor has not provided a "disposable income" analysis sufficient to allow the Court to determine whether the Plan meets the requirements for individual Chapter 11 debtors. About Katherine Montgomery Katherine N. Montgomery, a medical doctor in Madison County, Alabama, sought protection under Chapter 13 of the Bankruptcy Code on Oct. 29, 2015. The case was converted to a Chapter 11 case (Bankr. N. D. Ala. Case No. 15-82936) on Jan. 15, 2016. Sparkman, Shepard & Morris, P.C., serves as the Debtor's bankruptcy counsel. KENT MANOR: Wants to Employ Century 21 as Broker to Sell Inn ------------------------------------------------------------ Kent Manor Inn, LLC, seeks permission from the U.S. Bankruptcy Court for the District of Maryland to employ Century 21 New Millennium as broker to the Debtor. Century 21 will act as the Debtor's broker to market and sell the Debtor's property as and when appropriate. The Debtor owns and operates the Kent Manor Inn, located at 500 Kent Manor Drive, in Stevensville, Maryland. The real property consists of a historic, restored 1820s waterfront home, situated on roughly 220 acres of woods and farmland. The Debtor's assets consist primarily of the real property upon which the inn is located, the personal property and business operations of the resort inn and wedding/meeting venue, which collectively is the "Property." As the broker for the sale, Century 21 will accept a commission, subject to Court approval, as follows: (a) In the event of sale, exchange or transfer of the Property when the buyer is represented by an agent other than Stephen Karbelk and/or Lori Willis of Century 21, a commission equal to 5% of the total gross sale, exchange or transfer price. The Broker shall offer a buyer broker a 2.5% commission payable from the Broker's 5.0% commission at Closing. (b) In the event of a lease of part or all of the Property when the buyer is represented by an agent other than Stephen Karbelk and/or Lori Willis of Century 21, a commission equal to 5% of the total gross rental to be paid under the initial term of the lease, with said Commission due and payable in full on or before the commencement date of the lease, to be paid on or before the commencement date of the lease. The Broker shall offer a buyer broker a 2.5% commission payable from the Broker's 5.0% commission at Closing. (c) In the event of sale, exchange or transfer of the Property when the buyer is not represented by a broker, a commission equal to 4.0% of the total gross sale, exchange or transfer price. (d) In the event of a lease of part or all of the Property when the buyer is not represented by a broker, a commission equal to 4% of the total gross rental to be paid under the initial term of the lease, with said Commission due and payable in full on or before the commencement date of the lease, to be paid on or before the commencement date of the lease. (e) In the event of sale, exchange or transfer of the Property when the buyer is on the Seller's list of "Identified Prospects", a commission equal to 2.5% of the total gross sale, exchange or transfer price; and if a business sale is also involved, the same percentage based upon the total gross sale price of the business entity or assets. No buyer broker commission shall be offered to or payable to any broker representing any Identified Prospects. For privacy purposes, the Identified Prospects are not referenced in this Agreement but have been agreed to by separate memorandum between the Seller and Broker. (f) In the event the sale of the Property is cancelled as a result of (a) a refinance of the secured and/or unsecured debts, (b) an investment by a third party, (c) a joint venture agreement with a third party or (d) a sale to an entity related to any member of the Seller, the Broker shall be paid 2.5% of the consideration value, sales price, amount refinanced or transaction value, depending upon the nature of the transaction, at Closing. Stephen Karbelk, a realtor and team leader at Century 21, assures the Court that Century 21 does not hold or represent any interest adverse to the Debtor's estate in matters upon which it is to be engaged, and is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. Century 21 can be reached at: Century 21 Real Estate, LLC International Headquarters 175 Park Avenue Madison, NJ 07940 Toll-Free: 1-877-221-2765 Web site: http://www.century21.com/ About Kent Manor Kent Manor Inn, LLC, owns and operates the Kent Manor Inn, located at 500 Kent Manor Drive, in Stevensville, Maryland. The real property consists of a historic, restored 1820s waterfront home, situated on roughly 220 acres of woods and farmland. Kent Manor filed Chapter 11 bankruptcy petition (Bankr. D. Md. Case No. 16-18048-TJC) on June 14, 2016. Catherine Keller Hopkin, Esq., serves as the Debtors' counsel. KNS INC: Can Use Up to $360K of Core Bank Cash Through Oct. 7 ------------------------------------------------------------- Judge Shon Hastings of the U.S. Bankruptcy Court for the District of North Dakota authorized KNS, Inc. to use cash collateral in an amount not more than $360,000 from Sept. 1, 2016 to Oct. 7, 2016 to pay necessary business expenses. The use of cash collateral is subject to these limitations and conditions, among others: (a) The Debtor must file its July and August 2016 operating reports not later than September 21, 2016. In addition, the Debtor will produce bank statements and an accounts receivable aging summary to Core Bank on a weekly basis. (b) The Debtor is directed to maintain continuous property damage and general liability insurance coverage for the prepetition collateral and the Postpetition Collateral in the types and amounts required under the prepetition financing agreements, as additional adequate protection. (c) The Debtor is required to pay all postpetition federal and state taxes, including timely deposit of payroll taxes. (d) The Debtor is required deposit all cash proceeds and income into the DIP Account. (e) The Debtor is further required to maintain a total book value of Debtor’s cash in the DIP Account and accounts receivable of not less than $597,208 throughout the term of the Court's Order. A further hearing on the Debtor's use of cash collateral is scheduled on Oct. 3, 2016. A full-text copy of the Final Cash Collateral Order, dated September 1, 2016, is available at https://is.gd/v2UhVf About KNS, Inc. KNS, Inc. filed a chapter 11 petition (Bankr. D. N.D. Case No. 16-30109) on March 11, 2016. The petition was signed by Steve Mohr, president. The Debtor is represented by Kenneth Corey-Edstrom, Esq., at Larkin Hoffman Daly & Lindgren Ltd. The case is assigned to Judge Shon Hastings. The Debtor estimated assets of $0 to $50,000 and debt of $1 million to $10 million. The U.S. trustee for Region 12 disclosed in a court filing that no official committee of unsecured creditors has been appointed in the Chapter 11 case of KNS, Inc. KYEUNG GUK MIN: Unsecureds To Recoup 10% Under Plan --------------------------------------------------- Kyeung Guk Min filed with the U.S. Bankruptcy Court for the Eastern District of Virginia a fourth amended disclosure statement dated Aug. 16, 2016. Under the Plan, holders of Class 3 General Unsecured Claims, which total $2,904,617.15, will be paid pro rata at the rate of 10% of the allowed amount, over 120 months, with a distribution of the pro rata amount of $2,420.51 per month. The total plan payment and the monthly payment will be reduced by the electing Class 2 Claims. The funding of the Plan is based on the continuing ability of the Debtor to receive net distributions from the businesses Debtor operates. Thus far, the Debtor has received approximately $5,750 to $6,000 per month in distributions and so the funding available to the Debtor should be sufficient to fund the Plan. With respect to the secured claims, the Debtor proposes either to continue payments on the current debts through the operating businesses or to induce the lenders to modify the claims to an affordable payment. In the event that the Debtor is not able to do so, the Debtor will surrender the secured properties in full satisfaction of the secured claims. As reported by the Troubled Company Reporter on Sept. 1, 2016, the Debtor filed with the Court a response to the Internal Revenue Service's objection to the confirmation of the Debtor's confirmation of the third amended Chapter 11 plan of reorganization, saying that it will include the IRS's "proposed language to remedy this objection" in a revised version of the Plan to be submitted to the creditors and parties in interest for vote. The Fourth Amended Disclosure Statement is available at: http://bankrupt.com/misc/vaeb14-13416-267.pdf About Kyeung Guk Min Kyeung Guk Min is an individual residing in Centreville, Virginia. He has considerable experience operating car washes. He has been doing so since 2006. Currently, he operates two car washes, SeCar Auto Wash, Inc., in Falls Church, Virginia; Adams Auto Wash, Inc., which has two locations, one in Greenville, North Carolina; and one in Goldsboro, North Carolina. SeCar at Rich, LLC, operated in Richmond, Virginia. Due to a foreclosure, this entity has ceased operations. Mr. Min also has residential rental properties which he owns with his non-filing spouse: 5768 Janney's Mill Circle, Haymarket Virginia; 4085 Columbia Pike, Arlington, Virginia; 5412 Pachysandra, Louisiana, Centreville, Virginia. Mr. Min owns an office suite at 22611 Markey Ct., No. 114, Sterling, Virginia. Mr. Min nets between $6,000 and $7,500 per month from these businesses. The Debtor sought protection under Chapter 11 of the Bankruptcy Code (Bankr. E.D. Va. Case No. 14-13416) on Sept. 14, 2014. The Debtor is represented by Thomas F. DeCaro, Jr., Esq., who has an office at Upper Marlboro, Maryland. LEWIS HEALTH: Seeks Dec. 26 Exclusive Plan Filing Period Extension ------------------------------------------------------------------ Lewis Health Institute, Inc. asks the U.S. Bankruptcy Court for the Southern District of Florida to extend its exclusive periods to file a chapter 11 plan and solicit acceptances to the plan, to December 26, 2016 and February 24, 2017, respectively. The Debtor relates that it attended a mediation with its largest creditor in December 2015. The Debtor further relates that at that time, it entered into a Court-approved Settlement Agreement with the Creditor, which was approved by the Court on January 20, 2016. . The Debtor contends that it is in the process of finalizing and determining the treatment of its creditors through the chapter 11 plan. The Debtor submits that the Extension Motion is filed without the intent to hinder or delay any payments due HCA Health Services of Florida, Inc About Lewis Health Institute, Inc. Lewis Health Institute, Inc. filed a chapter 11 petition (Bankr. S.D. Fla. Case No. 15-25980) on Sept. 3, 2015. The petition was signed by Yolanda V. Lewis, president. The Debtor is represented by Craig I. Kelley, Esq., at Kelley & Fulton, PL. The Debtor estimated assets at $0 to $50,000 and liabilities at $100,001 to $500,000 at the time of the filing. LIGHT TOWER: Employs Prime Clerk as Claims and Noticing Agent ------------------------------------------------------------- Light Tower Rentals, Inc., et al., seek authority from the U.S. Bankruptcy Court for the Southern District of Texas to employ Prime Clerk LLC as claims, noticing and solicitation agent in their Chapter 11 cases, nunc pro tunc to the Petition Date. As Claims and Noticing Agent for the Debtors and their cases, Prime Clerk will, among other tasks: (i) serve as the noticing agent to mail notices to the estates' creditors, equity security holders, and parties in interest; (ii) provide computerized claims, objection, solicitation, and balloting database services; and (iii) provide expertise, consultation, and assistance in claim and ballot processing and other administrative services with respect to the Debtors' bankruptcy cases, pursuant to the provisions of the Engagement Agreement. The Debtors ask that the undisputed fees and expenses incurred by Prime Clerk in the performance of the services be treated as administrative expenses of the Debtors' estates pursuant to Section 156(c) of the Judiciary and Judicial Procedures Code and section 503(b)(1)(A) of the Bankruptcy Code and be paid in the ordinary course of business pursuant to the Engagement Agreement without further application to or order of the Court. Prior to the Petition Date, the Debtors provided Prime Clerk a retainer in the amount of $25,000. Prime Clerk seeks to first apply the retainer to all prepetition invoices, and thereafter, to seek to have the retainer replenished to the original retainer amount, and thereafter, to hold the retainer under the Engagement Agreement during these chapter 11 cases as security for the payment of fees and expenses incurred under the Engagement Agreement. Michael J. Frishberg, the Co-President and Chief Operating Officer of Prime Clerk, assures the Court that Prime Clerk is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. Prime Clerk can be reached at: Prime Clerk LLC 830 Third Avenue, 9th Floor New York, NY 10022 Telephone: (212) 257-5450 Facsimile: (212) 257-5452 Web site: http://www.primeclerk.com/ About Light Tower Rentals Light Tower Rentals, Inc. (Bankr. S.D. Tex. Case No. 16-34284), LTR Investco, Inc. (Bankr. S.D. Tex. Case No. 16-34285), LTR Holdco, Inc. (Bankr. S.D. Tex. Case No. 16-34286) and LTR Shelters, Inc. (Bankr. S.D. Tex. Case No. 16-34287) sought bankruptcy protection under Chapter 11 of the Bankruptcy Code on August 30, 2016. The petitions were signed by Kieth Muncy, chief financial officer. The cases are assigned to Judge David R. Jones. The Debtors and their non-Debtor affiliates are a diversified specialty equipment rental and services company focused on the oil and gas sector. The Debtors offer a diverse portfolio of surface rental equipment that can provide customers with a specific product, or when combined with other products, a comprehensive wellsite rental solution. The Debtorsâ€(TM) equipment rental fleet includes power generation units, fluid handling equipment, light towers, heaters, trailers and other equipment. The Debtors' current service operations include equipment delivery and set-up, fuel and trucking. The Debtors are represented by Patricia B. Tomasco, Esq. at Jackson Walker LLP, and Philip M. Abelson, Esq. at Proskauer Rose LLP. The Debtors' financial advisor is Zolfo Cooper, LLC; and its notice & claims agent is Prime Clerk LLC. At the time of filing, the Debtors estimated assets and liabilities at $100 million to $500 million. LIVING COLOUR: Court Allows Nov. 17 Plan Filing Extension --------------------------------------------------------- Judge Erik P. Kimball of the U.S. Bankruptcy Court for the Southern District of Florida extended, at the request of Living Colour Landscapes, LLC, and Marula Props, LLC, the exclusivity period within which only the Debtors may file a Plan and Disclosure Statement to Nov. 17, 2016, and the time within which only the Debtors may solicit acceptances of the Plan to Jan. 17, 2017. As reported by the Troubled Company Reporter on Aug. 25, 2016, the Debtors asked the Court to extend their exclusivity periods for they are currently in negotiations with their creditors, in efforts to resolve claim amounts and terms, which will have a material impact on the plan. In addition, the Debtors will likely file a joint plan with debtors in possession Elouise Botha and Deon Botha, as said entities are the principals of the Debtors and there are common creditors to both. About Living Colour Lake Worth, Florida-based Living Colour Landscapes, LLC, filed for Chapter 11 bankruptcy protection (Bankr. S.D. Fla. Case No. 16-15773) on April 21, 2016, listing $323,979 in total assets and $1.31 million in total liabilities. The petition was signed by Deon Botha, manager. Judge Paul G. Hyman, Jr., presides over the case. Aaron A Wernick, Esq., at Furr & Cohen serves as the Debtor's bankruptcy counsel. Marula Props, LLC, also filed on the same day for Chapter 11 bankruptcy protection (Bankr. S.D. Fla. Case No. 16-15774), listing $179,252 in total assets and $1.25 million in total liabilities. LUVIS AMBULANCE: Taps Manuel Feliciano Rios as Fin'l Consultant --------------------------------------------------------------- Luvis Ambulance Services, Inc., seeks authority from the U.S. Bankruptcy Court for the District of Puerto Rico to employ Manuel E. Feliciano Rios, as the Debtor's financial consultant. The duties of the CPA will consist of strategic counseling and advice, proforma modeling preparation, financial/business assistance, preparation of documentation as requested for and during the Debtor's Chapter 11, specifically as it is related to and has an effect on the Debtor, as well as recommendations and financial/business assessments regarding issues specifically related to the Debtor. The Debtor says that it is in need of an accountant to assist its management in the financial restructuring of its affairs by providing advice in strategic planning and the preparation of Debtor's Monthly Operating Reports. The Debtor has retained Manuel E. Feliciano Rios on the basis of $1,000 retainers, which has been advanced by the Debtor against which the Financial Consultant will bill on the basis of $125 per hour, plus expenses, for work performed or to be performed by Feliciano Rios, upon applications(s) and the approval of the Court. Manuel E. Feliciano Rios, CPA, an accountant and practitioner fully admitted to the practice of public accounting in the Commonwealth of Puerto Rico, assures the Court that he is a disinterested person, as defined in Section 101(14) of the Bankruptcy Code. Mr. Feliciano-Rios may be reached at: Manuel E. Feliciano-Rios, CPA 350 Americo Miranda Avenue San Juan, PR 00927 Telephone: (787) 586-0316 Luvis Ambulance Services Inc. filed a Chapter 11 bankruptcy petition (Bankr. D.P.R. Case No. 16-06244) on Aug. 5, 2016. Judge Enrique S. Lamoutte Inclan presides over the case. MALIBU LIGHTING: Wants Exclusive Plan Period Moved to Jan. 2017 --------------------------------------------------------------- Malibu Lighting Corporation and debtor affiliates ask for 120 days extension from the U.S. Bankruptcy Court for the District of Delaware of the periods within which only the Debtors may file and obtain acceptances of a plan or, through and including January 4, 2017 and March 5, 2017, respectively. The Debtors relate that all throughout April, May, and June 2016, the Debtors successfully marketed and sold their real property interests located in (a) Caddo Parish, Louisiana, (b) Farmers Branch, Texas, and (c) Olive Branch, Mississippi, and all of these sales have now closed. The Debtors contend that they are still in the process of preparing a plan and related disclosure statement after having completed and consummated the sales of their respective assets and after having made substantial progress in the objection to and reduction of claims as they worked collaboratively with the Committee to reconcile claims resulting in the disallowance of approximately $15,000,000 in claims to date. About Malibu Lighting Malibu Lighting Corporation, Outdoor Direct Corporation, National Consumer Outdoors Corporation, Beam Corporation, Smoke 'N Pit Corporation, Treasure Sensor Corporation and Stubbs Collections Inc. filed Chapter 11 bankruptcy petitions (Bankr. D. Del. Lead Case No. 15-12080) on Oct. 8, 2015. The petition was signed by David M. Baker as chief restructuring officer. Judge Kevin Gross is assigned to the case. MLC was a manufacturer and supplier of outdoor and landscape lighting products, such as solar and low voltage lights and home security lights, including the parts and accessories associated with these products. ODC was a manufacturer and supplier of a variety of consumer goods, including (a) outdoor cooking products, such as outdoor gas grills, charcoal grills, smokers and fryers, (b) hand held lighting products, like flashlights and spotlights, (c) landscape lighting products, and (d) parts and accessories associated with the foregoing products. MLC and ODC are winding down operations as a result of the termination of a business relationship with principal customer, Home Depot. NCOC is a manufacturer and supplier of both branded and private label pet bedding and pet accessory products. NCOC manufactures beds, accessories, and deodorizers for dogs as well as beds, scratching posts, and toys for cats. In addition, NCOC markets and sells boat covers manufactured primarily from Chinese suppliers. Malibu estimated assets and liabilities of $10 million to $50 million in its bankruptcy petition. The Debtors have engaged Pachulski Stang Ziehl & Jones LLP as counsel, Piper Jaffray Co. as investment banker, and Kurtzman Carson Consultants as claims and noticing agent. On Oct. 20, 2015, an official committee of unsecured creditors was appointed by the Office of the United States Trustee. The Committee has retained Lowenstein Sandler LLP as its counsel, Blank Rome LLP as its Delaware co-counsel and BDO USA, LLP, as its financial advisors. No request has been made for the appointment of a trustee or an examiner in these cases. MANUFACTURERS ASSOCIATES: Trustee Hires Blum Shapiro as Accountant ------------------------------------------------------------------ Roberta Napolitano, the Chapter 11 Trustee of Manufacturers Associates, Inc. asks for permission from the U.S. Bankruptcy Court for the District of Connecticut to employ Blum Shapiro & Co., P.C. as accountants. The Trustee requires Blum Shapiro to: (a) examine the books and records of the Debtor; (b) update and complete the accounting records if needed; (c) assist the Trustee in determining the viability of ongoing operations, based on the available and/or recreated financial records of the business; and (d) assist in any additional financial or forensic investigations requested by the Trustee, including identifying potential preferences or potential fraudulent conveyances, as well as preparation of any additional required reports; Blum Shapiro will be paid at these hourly rates: Partners and Principals $390-$430 Manager and Director $265-$380 Senior Staff $210-$260 Staff $125-$200 Blum Shapiro will also be reimbursed for reasonable out-of-pocket expenses incurred. The maximum allowable compensation for said services shall be $25,000. Erum Randhawa of Blum Shapiro assured the Court that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtor and its estate. Blum Shapiro can be reached at: Erum Randhawa BLUM SHAPIRO & CO., P.C. 29 South Main Street P.O. Box 272000 West Hartford, CT 06127-2000 Tel: (860) 570-6498 Fax: (860) 726-7598 E-mail: erandhawa@blumshapiro.com About Manufacturers Associates Manufacturers Associates, Inc., based in West Haven, Conn., filed a Chapter 11 petition (Bankr. D. Conn. Case No. 15-31832) on Nov. 2, 2015. The petition was signed by Anthony Parillo, Jr., president. The Debtor is represented by Peter L. Ressler, Esq., at Groob Ressler & Mulqueen, P.C. The case is assigned to Judge Julie A. Manning. At the time of the filing, the Debtor estimated assets at $0 to $50,000 and liabilities at $1 million to $10 million. MAXIM CRANE: S&P Withdraws 'B' CCR on Apollo Acquisition -------------------------------------------------------- S&P Global Ratings withdrew all ratings, including its 'B' corporate credit rating, on Maxim Crane Works L.P. Maxim is a wholly owned subsidiary of Cloud Crane LLC (B/Stable) which is unaffected by this rating action. The ratings withdrawal follows the completion of Apollo's acquisition of Maxim. All of the company's rated obligations have been repaid and, as such, S&P is withdrawing all ratings on Maxim at the company's request. MCDERMOTT INT'L: Egan-Jones Lowers Sr. Unsec. Ratings to B+ ----------------------------------------------------------- Egan-Jones Ratings Company downgraded the senior unsecured ratings on debt issued by McDermott International Inc to B+ from BB- on Aug. 24, 2016. McDermott International is an American multinational engineering, procurement, construction and installation company with operations in the Americas, Middle East, the Caspian Sea and the Pacific Rim. MICHAEL D COHEN MD: Case Summary & 18 Top Unsecured Creditors ------------------------------------------------------------- Debtor: Michael D. Cohen, M.D, P.A. dba Cosmetic Surgery Center of Maryland dba Belcara Health dba Belecara 1427 Clarkview Road Owings Mill, MD 21117 Case No.: 16-22231 Nature of Business: Health Care Chapter 11 Petition Date: September 12, 2016 Court: United States Bankruptcy Court District of Maryland (Baltimore) Debtor's Counsel: Irving Edward Walker, Esq. COLE SCHOTZ P.C. 300 E. Lombard Street, Suite 1450 Baltimore, MD 21202-3171 Tel: (410) 528-2970 Fax: (410) 230-0667 E-mail: iwalker@coleschotz.com Estimated Assets: $100,000 to $500,000 Estimated Liabilities: $1 million to $10 million The petition was signed by Shari L. Cohen, authorized representative. A copy of the Debtor's list of 18 largest unsecured creditors is available for free at http://bankrupt.com/misc/mdb16-22231.pdf MICHAEL D COHEN MD: Files for Chapter 11 Bankruptcy Protection -------------------------------------------------------------- Michael D. Cohen, M.D., P.A., a plastic and cosmetic surgery company which recently opened a new health facility in Maryland, sought bankruptcy protection (Bank. D. Md. Case No. 16-22231) blaming the cost of litigation and facility expansion for its financial troubles. The petition was signed by Shari L. Cohen, the authorized representative of the Debtor and the one responsible for the business administration of the Debtor's medical practice. The bankruptcy filing comes after a Baltimore County Circuit Court judge issued a $1,275,000 judgment against the Debtor in May, 2016, based on unjust enrichment and quantum meruit in a litigation initiated by its former non-physician employee, Dawn Richardson, who claimed ownership and lost profits in a company known as Skin, Inc. The Debtor has appealed the judgment. In papers filed in the U.S. Bankruptcy Court for the District of Maryland, the Company estimated its assets in the range of $100,000 to $500,000 and liabilities of up to $10 million. Formed in 1996, the Debtor is engaged in the business of providing various physician services to its patients, including but not limited to services in the areas of plastic surgery, dermatology, and podiatry. It operated under the name of Cosmetic Surgery Center of Maryland, Cosmetic Surgery Center of Maryland, LLC and Cosmetic Organization for Practice Enhancement, LLC, now known as CMG Partners, LLC. Court papers indicate that the Debtor opened its new 18,000 square-foot multispecialty facility at its current location in June 2014, with the plan to include with its cosmetic surgery practice dermatology, ophthalmology, podiatry and other medical practices under a new name, which is now Belcara Health. In an affidavit filed with the Court, Ms. Cohen said that the Debtor and its affiliates incurred substantial new debts for leasehold improvements and new medical equipment in connection with the opening of the new Belcara Health facility in addition to the enormous legal fees in defending the Richardson Litigation, which drained the Debtor's cash. She added that the Debtor intends to pursue its appeal from the Richardson Judgment while it also pursues the reorganization of its financial affairs. Concurrently with the filing of the petition, the Debtor filed certain first-day motions seeking permission to: (a) use the cash collateral of PNC Bank, National Association and Manufacturers and Traders Trust Company, which is needed to cover day-to-day operating expenses necessary to continue the operations of its business; (b) maintain employee morale and confidence and to avoid disruption of its relationships with its patients; and (c) establish certain other administrative procedures to promote a smooth transition into Chapter 11. "Gaining and maintaining the support of the Debtor's employees, vendors, patients, and other key constituents, as well as maintaining the day-to-day operations of the Debtor's medical practice with minimal disruption will be critical to the Debtor's efforts in Chapter 11 and its ability to maximize the recovery prospects for all interested parties," said Ms. Cohen. As disclosed in Court documents, the Debtor owes M&T Bank $2,579,166 in connection with a May 2013 loan to fund the costs of leasehold improvements, equipment and furnishings for the new Belcara Health facility, and $250,000 under a Business Access Line of Credit, as of the Petition Date. The Debtor also owes PNC Bank, as of the bankruptcy filing, $202,603. The Debtor has certain other debts to a few equipment vendor. Cole Schotz P.C. serves as counsel to the Debtor. Two weeks ago, plastic surgeon Michael D. Cohen, M.D., the sole shareholder of the Debtor, and his wife, Shari L. Cohen jointly filed a Chapter 11 petition in the District of Maryland. A full-text copy of Shari L. Cohen's affidavit is available for free at: http://bankrupt.com/misc/9_MICHAEL_Affidavit.pdf MICHAEL D COHEN MD: Wants to Use Secured Lenders' Cash Collateral ----------------------------------------------------------------- Michael D. Cohen, M.D., P.A., seeks authority from the Bankruptcy Court to use cash collateral in which PNC Bank, National Association, and Manufacturers and Traders Trust Company hold security interests. The Debtor proposes to use accounts receivables, which constitute cash collateral, for the purposes of paying all necessary expenses (including physicians and staff) and to otherwise fund its operations. It is estimated that, as of the Petition Date, the value of the Debtor's Cash Collateral is $141,732, inclusive of the bank account balance of $170. The Debtor maintained that if it is unable to use Cash Collateral, the recoveries for creditors would be greatly reduced since, under a "shut-down" scenario, the current and new patients would be lost and the value of its estate would decline dramatically. As adequate protection, the Debtor intends to provide PNC Bank and M&T Bank: (a) a replacement security interest in and lien on all of the existing collateral to the extent of any diminution of the Cash Collateral after the Petition Date; and (b) superpriority claims in the amount of the adequate protection obligations to the extent provided in Section 507(b) of the Bankruptcy Code. During the interim period, the Debtor will limit its use of cash to a prepared budget. According to Court documents: (a) the Debtor is a borrower pursuant to a Promissory Note dated Jan. 8, 2013, with PNC Bank in the principal amount of $250,000. There is principal, interest and fees of $202,628 owed as of the Petition Date under the PNC Bank Loan, which is believed to be secured by substantially all of the Debtor's assets, including its receivables and inventory; and (b) CMG Partners, LLC, an affiliate of the Debtor, is a borrower pursuant to a Note dated May 29, 2013, with M&T Bank in the original principal amount of $2,925,000. The Debtor signed an Unconditional Guarantee, guaranteeing payment to M&T Bank of all amounts owing under the M&T Bank Loan. There is principal, interest and fees of $2,329,166 owed under the M&T Bank Loan as of the Petition Date, which is believed to be secured by substantially all of the Debtor's assets. The Debtor is also a borrower under a Business Access Line of Credit with M&T Bank in the principal amount of $250,000. Approximately $250,000 is owed under the M&T Bank Line of Credit as of the Petition Date. The Debtor said that the interests of PNC Bank and M&T Bank in the Cash Collateral are adequately protected through, among other things: (a) a continuing lien on its accounts receivable and inventory, (b) continuing payments on account of the pre-petition PNC Bank Loan in the amount of $3,000 per month, (c) a replacement lien on its postpetition assets, and (d) an administrative expense claim to the extent its use of Cash Collateral results in a diminution of the value of PNC Bank and M&T Bank's Cash Collateral after the Petition Date. "If the Debtor were precluded from making expenditures necessary to maintain its assets and conduct ongoing operations in the ordinary course, or if the Debtor were forced to abruptly shut down its medical practice, PNC Bank, M&T Bank and other creditors would be harmed," Irving E. Walker, Esq., at Cole Schotz P.C., one of the Debtor's attorneys, said. About Michael D. Cohen Based in Maryland, Michael D. Cohen, M.D., P.A., is a professional corporation engaged in the business of providing various physician services to its patients, including but not limited to services in the areas of plastic surgery, dermatology, and podiatry. Michael D. Cohen, M.D., is the sole shareholder of the Debtor. Shari L. Cohen, Dr. Cohen's wife, is responsible for the business administration of the Debtor's medical practice. The Company filed a voluntary petition under Chapter 11 of the Bankruptcy Code (Bankr. D. Md. Case No. 16-22231) on Sept. 12, 2016. The Debtor estimated assets in the range of $100,000 to $500,000 and liabilities in the range of $1 million to $10 million as of the bankruptcy filing. Cole Schotz P.C. serves as counsel to the Debtor. MID-STATES SUPPLY: Seeks to Move Exclusive Plan Filing to Oct. 6 ---------------------------------------------------------------- Mid-States Supply Company, Inc. requests the U.S. Bankruptcy Court for the Western District of Missouri for a 120-day extension of the exclusive period within which the Debtor may file a plan of reorganization, or until Oct. 6, 2016, and the exclusive period for the Debtor to solicit acceptances of the plan by an additional 180 days, or until Dec. 6, 2016. The Debtor contends that it is asking for an extension in order to permit the Debtor an opportunity to work with the Committee to propose a viable Plan and submit a comprehensive disclosure statement for the Debtor is contemplating to file a joint plan with the Committee, and believes it will be in a position to do so on or before October 6, 2016. About Mid-States Supply Company Founded and headquartered in Kansas City, Missouri, Mid-States Supply Company, Inc., supplier of pipes, valves and fittings to ethanol, pipeline and power industries in the United States, filed a Chapter 11 bankruptcy petition (Bankr. W.D. Mo. Case No. 16-40271) on Feb. 7, 2016. The petition was signed by Stuart Noyes as chief restructuring officer. The Debtor estimated both assets and liabilities in the range of $50 million to $100 million. The Debtor has engaged Spencer Fane LLP as counsel, Winter Harbor LLC as financial advisor, SSG Advisors, LLC and Frontier Investment Banc Corporation as investment bankers, Tarsus CFO Services, LLC as chief financial officer services provider and Epiq Bankruptcy Solutions, LLC as claims and noticing agent. An official committee of unsecured creditors has been appointed in the case and is represented by Marcus A. Helt, Esq., and Michael S. Haynes, Esq., at Gardere Wynne Sewell LLP. MODULAR SPACE: S&P Lowers CCR to 'SD', Off CreditWatch Negative --------------------------------------------------------------- S&P Global Ratings said it lowered its corporate credit rating on Modular Space Corp to 'SD' from 'CCC' and its issue-level rating on the company's senior secured notes to 'D' from 'CCC'. At the same time, S&P removed the ratings from CreditWatch, where it placed them with negative implications on Aug. 15, 2016. "Modular Space Corp. announced on Aug. 29, 2016, that it elected to defer its interest payment due Aug. 1, 2016, on the company's senior secured notes, and had not cured the default within the 30-day grace period in the notes' indenture," said S&P Global Ratings credit analyst Jeff Ward. "We are lowering our corporate credit rating on Modular Space Corp. to 'SD' and our senior secured note rating to 'D' because the company failed to make its interest payment. The company is still in discussions with its noteholders." Before this rating action, on Aug. 15, 2016, S&P lowered its corporate credit rating on the company and S&P's issue-level rating on its senior secured notes to 'CCC' and placed all the ratings on CreditWatch with negative implications upon the announcement of the termination of its merger agreement with Algeco Scotsman Global S.a.r.l. This previous rating change reflected the risk associated with Modular Space Corp.'s potential inability to refinance its asset-based credit facility. NORTEK INC: S&P Withdraws 'B' Corporate Credit Rating ----------------------------------------------------- S&P Global Ratings withdrew its 'B' corporate credit rating on Providence, R.I.-based Nortek Inc., at the company's request. S&P also withdrew the 'BB-' issue-level rating and '1' recovery rating on the company's senior secured term loan and 'B-' issue-level rating and '5' recovery rating on the company's senior unsecured notes. The ratings withdrawal is at the company's request following the completion of Nortek's acquisition by Melrose Industries PLC (unrated) on Aug. 31, 2016. On Aug. 25, 2016, Nortek submitted prepayment and termination notices for its senior secured term loan and asset-based revolving credit agreement with its lenders. On Aug. 31, 2016, Nortek provided a notice of redemption to the holders of its 8.5% senior notes due 2021 of its plan to redeem all outstanding $735 million aggregate principal amount of the notes on Sept. 30, 2016. NORTHWEST PEDIATRIC: Seeks to Extend Plan Exclusivity to Jan. 2017 ------------------------------------------------------------------ Northwest Pediatric Services S.C. dba Kid Care Medical S.C. asks the U.S. Bankruptcy Court for the Northern District of Illinois to extend the exclusive period for the Debtor to file its plan of reorganization and disclosure statement, from Oct. 4, 2016 through and including Jan. 15, 2017, and the exclusive date to solicit acceptances of the plan, from Dec. 13, 2016 through and including March 13, 2017. The Debtor narrates that it was in the process of compiling financial information in connection with its plan of reorganization, when the Debtor's financial consultant, Larry Kammes, became critically ill and subsequently passed away on June 17, 2016, slowed the Debtor's progress towards a workable plan of reorganization. In addition, millions of dollars owed to the Debtor by insurers and the State of Illinois have not been paid, and many managed care organizations are slow paying, putting the Debtor further at risk. About Northwest Pediatric Services S.C. Headquartered in Elgin, Illinois, Northwest Pediatric Services S.C. dba Kid Care Medical S.C. filed for Chapter 11 bankruptcy protection (Bankr. N.D. Ill. Case No. 16-09373) on March 18, 2016, estimating its assets at between $100,000 and $500,000 and its liabilities at between $1 million and $10 million. The petition was signed by Orawan Sukavachana, M.D., president. Judge Jacqueline P. Cox presides over the case. Scott R Clar, Esq., at Crane, Heyman, Simon, Welch & Clar serves as the Debtor's bankruptcy counsel. On Feb. 29, 2012, the Debtor filed for Chapter 11 bankruptcy protection (Bankr. N.D. Ill. Case No. 12-07777). On May 22, 2013, the Debtor confirmed its Third Plan of Reorganization. IRS and IDR were secured and priority unsecured creditors in the previous Chapter 11 case. Under the terms of the Plan, IRS and IDR were to be given 20 payments over a five-year period. Each payment to the IRS was to be approximately $138,000. NYC DIPLOMAT: Employs Hugh L. Rothbaum as Bankruptcy Attorney ------------------------------------------------------------- NYC Diplomat Outfitters, LLC, seeks authority from the U.S. Bankruptcy Court for the Southern District of New York to employ Hugh L. Rothbaum, Esq., as attorney for the Debtor. The Debtor says it has retained the Attorney to represent the Debtor in the Chapter 11 case pursuant to a written retainer agreement and Debtor has paid Attorney the sum of $6,500 as an initial retainer to represent the Debtor in the case pursuant to terms of the retainer. The Attorney's compensation is payable at the rate of $300 per hour. Hugh L. Rothbaum, Esq., assures the Court that he is a disinterested person, as the term is defined in the Bankruptcy Code. Mr. Rothbaum may be reached at: Hugh L. Rothbaum, Esq. 235 Main Street, Suite 320 White Plains, NY 10601 Telephone: (914) 358-4232 E-mail: hughrothbaum@aol.com About NYC Diplomat NYC Diplomat Outfitters, LLC, is a small business debtor headquartered in New York City. NYC Diplomat filed Chapter 11 bankruptcy petition (Bankr. S.D.N.Y. Case No. 16-11661) on June 6, 2016. Abdelilah A. Belghiti signed the petition as sole member. Hugh L. Rothbaum, Esq., serves as the Debtors' counsel. NYC Diplomat estimated its assets in the range of $0 to $50,000. NYC Diplomat estimated its liabilities in the range of $100,001 to $500,000. OBERFIELD PRECAST: 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 Oberfield Precast, LLC. Oberfield Precast, LLC dba Oberfield Precast fka Soutwest Castings, LLC dba Architectural Precast Designs, LLC fka SAC Precast, LLC, dba Oberfield Architectural Precast filed a chapter 11 petition (Bankr. D. Ariz. Case No. 16-08999) on Aug. 5, 2016. The petition was signed by Robert Stephen Oberfield, manager. The Debtor is represented by Preston M. Gardner, Esq. and Pernell W. McGuire, Esq., at Davis Miles Mcguire Gardner PLLC. The case is assigned to Judge Paul Sala. The Debtor estimated assets at $500,000 to $1 million and liabilities at $1 million to $10 million at the time of the filing. OCI BEAUMONT: S&P Lowers CCR to 'CCC+' on Weak Credit Metrics ------------------------------------------------------------- S&P Global Ratings lowered its corporate credit rating on OCI Beaumont LLC to 'CCC+' from 'B'. The outlook is stable. At the same time, S&P lowered its rating on the company's senior secured debt to 'B-' from 'B+'. The recovery rating on the secured debt remains '2', indicating S&P's expectation for substantial recovery (70% to 90%, lower half of the range) in the event of a default. "The downgrade reflects our view that ongoing weakness in the company's operating performance will result in annual 2016 credit metrics that are significantly weaker than results for the past 12-month period ended June 30, 2016, and well below our previous expectations for 2016," said S&P Global Ratings credit analyst Paul Kurias. The stable outlook reflects S&P's assumption that management will proactively manage its covenant compliance requirements and refinancing needs. S&P assumes that the credit facilities will be refinanced or have their covenants amended well before the March 2017 maturity of the revolver. The term loan matures in 2019. S&P believes the company will preserve its cash flow and eliminate distributions to shareholders during a period in which liquidity is strained. S&P assumes the company's unsecured revolver will be available. S&P could lower ratings in the next few months if the company does not refinance its credit facilities or amend its covenants in 2016. S&P could also lower ratings if liquidity tightens further so that it believes sources of funds will be lower than uses. This could happen if operating performance and cash flow deteriorate below our expected levels. Lastly, S&P could lower the ratings if, against its expectations, the company does not fulfill its interest obligations S&P could consider a one-notch upgrade in the next 12 months if the company improves its liquidity position including if the credit facilities are refinanced and covenants amended with sufficient cushions that account for trough-like conditions over the next 12 to 18 months. OLIN CORP: Egan-Jones Cuts Sr. Unsec. Ratings to BB- ---------------------------------------------------- Egan-Jones Ratings Company downgraded the senior unsecured ratings on debt issued by Olin Corp. to BB- from BB on Aug. 24, 2016. Based in Clayton, Missouri, the Olin Corporation is an American manufacturer of ammunition, chlorine, and sodium hydroxide. ORANGE PEEL: Seeks to Hire Buratti PA as Debtor's Special Counsel ----------------------------------------------------------------- Orange Peel Enterprises, Inc., asks for permission from the U.S. Bankruptcy Court for the Southern District of Florida to employ Jason Buratti, Esq. and Buratti P.A. as the Debtor's special counsel for corporate matters, nunc pro tunc to August 9, 2016. Mr. Buratti previously represented the Debtor in private practice and has a long history with the Company and its products and intellectual property. Prepetition, the Firm was engaged by the Debtor to perform business and corporate legal services. However, the Firm does not hold any prepetition claims against the Debtor. Prepetition, the Debtor paid the Firm a retainer of $9,000 for such employment, which the Firm is holding in trust. As set forth in the Engagement Letter, the Firm's duties would include business and corporate legal services, which would specifically include transactional services relating to the Debtor's sale of its assets or reorganization. The Firm's proposed compensation arrangement is set forth in the Engagement Letter as the greater of: (a) a reduced hourly rate of $325; or (b) a contingency fee consisting of 4% of the gross sale proceeds of the Debtor's assets. Moreover, the Debtor has agreed to reimburse the Firm's reasonable costs and Expenses according to the Firm's customary reimbursement policies. Jason Buratti, Esq., a licensed Florida attorney and the President of the Buratti, P.A., assures the Court that he and the Firm do not represent or hold any interest adverse to the Debtor or to the bankruptcy estate with respect to the matters on which they are to be employed. Mr. Buratti may be reached at: Jason Buratti, Esq. BURATTI, P.A., 7935 East Dr., Apt 804 North Bay Village, FL 33141-3693 Telephone: (954) 683-1072 E-mail: jasonrburatti@gmail.com About Orange Peel Orange Peel Enterprises, Inc. dba GREENS+, based in Vero Beach, Fla., filed a Chapter 11 bankruptcy petition (Bankr. S.D. Fla. Case No. 16-21023) on August 9, 2016. The Hon. Erik P. Kimball presides over the case. Bradley S. Shraiberg, Esq., at Shraiberg Ferrara Landau & Page PA, as bankruptcy counsel. In its petition, the Debtor estimated $1 million to $10 million in assets and $100 million to $500 million in liabilities. The petition was signed by by Jude A. Deauville, CEO. PALMAZ SCIENTIFIC: Over $310K Atty's Fees, Expenses Awarded to NRF ------------------------------------------------------------------ Judge Craig A. Gargotta of the United States Bankruptcy Court for the Western District of Texas, San Antonio Division, granted, in part, and denied, in part, the first and final application for payment of fees and reimbursement of expenses by Norton Rose Fulbright US LLP, attorneys for Palmaz Scientific Inc., Advanced Bio Prosthetic Surfaces, Ltd., ABPS Venture One, Ltd., and ABPS Management, L.L.C., for the time period March 4, 2016, to June 10, 2016. The total amount of fees and reimbursement of expenses granted to NRF was $318,003.44. NRF sought from the bankruptcy estate, payable as an administrative expense, professional fees of $393,981.00 and reimbursement of expenses of $7,690.94 for a total award of $401,671.94 for the time period March 4, 2016 through June 10, 2016 for representation of the Debtors. Three parties in interest objected to NRF's fee application: the Debtors, the United States Trustee, and Vactronix, Inc. Vactronix's objection was twofold. Vactronix objected to a number of time entries, alleging that the time entries were inaccurate, not compensable, or should have been billed at a reduced rate, by using paralegals or associates to do the tasks. The other objections were to specific categories of fees in which Vactronix argued that the fees should be disallowed because the fees are exorbitant or that NRF failed to provide compensable services. The United States Trustee also objected to NRF's application, objecting to the allowance of NRF's fees on a categorical basis. Judge Gargotta agreed with the objecting parties that fees could have been reduced had associates been dedicated to the case. The judge found that, in a firm of NRF's size, there should have been some associates that could have assisted in the case. Further, when examining the amount of fees requested versus the types of services provided, Judge Gargotta noted that NRF did not complete the case or provide the customary services of drafting an asset purchase agreement, disclosure statement, plan of reorganization, term sheet, and negotiating same with all the constituencies in the case. Also, when comparing debtors in this case -- non-operating entities with few employees and few assets other than patents -- to the fees requested in other cases, Judge Gargotta found that NRF's fees could have been lower with the usage of more associates and a reduction of lawyers working on the DIP loan and other matters. Judge Gargotta thus awarded NRF fees in the reduced amount of $310,312.50 as counsel from March 4, 2016 to June 10, 2016. No party in interest objected to the allowance of NRF’s request for reimbursement for expenses in the amount of $7,690.94. Accordingly, those expenses are allowed. A full-text copy of Judge Gargotta's September 8, 2016 memorandum opinion and order is available at http://bankrupt.com/misc/txwb16-50552-397.pdf About Palmaz Scientific Headquartered in San Antonio, Texas, Palmaz Scientific is a research and development company dedicated to the advancement of the technology and science of medical implants. Palmaz Scientific Inc., Advanced Bio Prosthetic Surfaces, Ltd., ABPS Management, LLC and ABPS Venture One, Ltd., filed Chapter 11 bankruptcy petitions (Bankr. W.D. Tex. Case Nos. 16-50552, 16-50555, 16-50556 and 16-50554, respectively) on March 4, 2016. The petitions were signed by Eugene Sprague as director. The Debtors estimated both assets and liabilities in the range of $10 million to $50 million. The Debtors have engaged Norton Rose Fulbright US LLP as counsel, Groff & Rothe as accountants and Upshot Services LLC as noticing agent. The cases are assigned to Judge Craig A. Gargotta. PATRIOT ONE: Wants to Employ O Lampl Law Office as Attorney ----------------------------------------------------------- Patriot One, Inc., seeks authority from the U.S. Bankruptcy Court for the Western District of Pennsylvania to employ Robert O Lampl, Esq., John P. Lacher, Esq., David L. Fuchs, Esq., and Ryan J. Cooney, Esq., of the Robert O Lampl Law Office as attorneys. The Debtor says it is in need of services 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, to prepare any legal documentation on behalf of the Debtor, to review reports for legal sufficiency, to furnish information on legal matters regarding legal actions and consequences and for all necessary legal services connected with Chapter 11 proceedings including the prosecution and defense of any adversary proceedings. The Debtor wishes to retain Mr. O Lampl and his firm at these hourly rates: Robert O Lampl -- $450 John P. Lacher -- $400 David L. Fuchs -- $375 Ryan J. Cooney -- $275 Paralegal -- $150 Mr. O Lampl assures the Court that neither he nor anyone from his Firm have any connection with the Debtor, nor represent any interest adverse to the Debtor or any other parties-in-interest. He also states that the Firm waives any fees owed from any prior representation. The Firm can be reached at: Robert O Lampl, Esq. John P. Lacher, Esq. David L. Fuchs, Esq. Ryan J. Cooney, Esq. ROBERT O LAMPL LAW OFFICE 960 Penn Avenue, Suite 1200 Pittsburgh, PA 15222 Telephone: (412) 392-0330 Facsimile: (412) 392-0335 E-mail: rlampl@lampllaw.com rol@lampllaw.com dfuchs@lampllaw.com jcooney@lampllaw.com Patriot One, Inc., filed Chapter 11 bankruptcy petition (Bankr. W.D. Pa. Case No. 16-23160) on August 26, 2016. Robert O Lampl, Esq., serves as the Debtors' counsel. PAUL BURGETTE MOHR: Disclosures OK'd; Plan Hearing on Sept. 29 -------------------------------------------------------------- The Hon. Brenda K. Martin of the U.S. Bankruptcy Court for the District of Arizona has approved the disclosure statement filed by Paul and Lydia Mohr. The hearing to consider Confirmation of Debtors' Amended Plan will be held on Sept. 29, 2016, at 1:30 p.m. The last day for filing objections to the Confirmation of the Plan is fixed at Sept. 22, 2016. As reported by the Troubled Company Reporter on Aug. 16, 2016, the Debtors, according to the latest disclosure statement explaining their Chapter 11 plan of reorganization, are proposing to set aside $43,716 to pay their creditors. Under the plan, the Debtors propose to open an account into which they will regularly contribute funds to pay creditors in the total amount of $43,716.87. Ballots accepting or rejecting the Amended Plan must be received by the Debtors no later than Sept. 22, 2016. The Ballot Report will be filed by Sept. 26, 2016. The last date to file a complaint objecting to the discharge of the Debtors is fixed at Sept. 29, 2016. About The Mohrs Paul Burgette Mohr, Jr., and Lydia Katarina Mohr filed a Chapter 11 bankruptcy petition (Bankr. D. Ariz. Case No. 15-14636) on Nov. 16, 2015. The Debtors are represented by James F. Kahn, Esq., and Krystal M. Ahart, Esq., at the Law Office of James F. Kahn, P.C. PEABODY ENERGY: ELPC Objects to Illinois Settlement --------------------------------------------------- BankruptcyData.com reported that the Environmental Law and Policy Center (ELPC) filed with the U.S. Bankruptcy Court an objection to Peabody Energy's motion for a stipulation and order concerning reclamation bonding of surface coal mining operations located in Illinois. The objection asserts, "ELPC objects to the Illinois Settlement to the same extent it objected to the settlement motion for Indiana. ELPC lodges this objection recognizing that, in approving Peabody's settlements with Indiana, New Mexico, and Wyoming, the Court appropriately concluded on the record that those settlements left 'the United States wholly free to enforce its statutes, rules, and regulations' and was satisfied that 'other parties than the United States are not stayed from their rights, period.' ELPC now asks that the Court reach the same conclusion with respect to the Illinois Settlement. In addition, and consistent with its earlier objection, ELPC also seeks to apprise the Court of developments in the federal administrative process, which could result in the very 'changed circumstances' that the Court recognized may merit revisiting the issue of whether the Illinois and Indiana Settlements comply with the Surface Mining Reclamation and Control Act ('SMCRA'). As a condition for any coal mining permit, SMCRA requires that an applicant file a bond to cover costs of reclamation at the mining site. The requirement to post a bond is not predicated on whether a company has literally defaulted on reclamation obligations in the past or whether a company is adequately performing reclamation obligations somewhere else. The bonding requirement prevents the prospective abandonment of contaminated and polluted mine sites and the insufficiency of funding for mine site reclamation obligations." About Peabody Energy Corporation Headquartered in St. Louis, Missouri, Peabody Energy Corporation claims to be the world's largest private-sector coal company. As of Dec. 31, 2014, the Company owned interests in 26 active coal mining operations located in the United States (U.S.) and Australia. The Company has a majority interest in 25 of those mining operations and a 50% equity interest in the Middlemount Mine in Australia. In addition to its mining operations, the Company markets and brokers coal from other coal producers, both as principal and agent, and trade coal and freight-related contracts through trading and business offices in Australia, China, Germany, India, Indonesia, Singapore, the United Kingdom and the U.S. Peabody posted a net loss of $1.988 billion for 2015, wider from the net loss of $777 million in 2014 and the $513 million net loss in 2013. At Dec. 31, 2015, the Company had total assets of $11.02 billion against $10.1 billion in total liabilities, and stockholders' equity of $919 million. On April 13, 2016, Peabody Energy Corp. and 153 affiliates filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code. The 154 cases are pending joint administration before the Honorable Judge Barry S. Schermer under Case No. 16-42529 in the U.S. Bankruptcy Court for the Eastern District of Missouri. As of the Petition Date, PEC has approximately $4.3 billion in outstanding secured debt obligations and $4.5 billion in outstanding unsecured debt obligations. The Debtors tapped Jones Day as general counsel; Armstrong, Teasdale LLP as local counsel; Lazard Freres & Co. LLC and investment banker Lazard PTY Limited as investment banker; FTI Consulting, Inc., as financial advisors; and Kurtzman Carson Consultants, LLC, as claims, ballot and noticing agent. The Office of the U.S. Trustee on April 29 appointed seven creditors of Peabody Energy Corp. to serve on the official committee of unsecured creditors. The Committee retained Morrison & Foerster LLP as counsel, Spencer Fane LLP as local counsel, Curtis, Mallet-Prevost, Colt & Mosle LLP as conflicts counsel, Blackacre LLC as its independent expert, and Berkeley Research Group, LLC, as financial advisor. PENN VIRGINIA: Reorganization Plan Takes Effect, Exits Chapter 11 ----------------------------------------------------------------- Penn Virginia Corporation ("Penn Virginia" or the "Company") on Sept. 12 disclosed that it has satisfied the conditions precedent to the effectiveness of its Plan of Reorganization (the "Plan"), which was confirmed by the U.S. Bankruptcy Court for the Eastern District of Virginia on August 11, 2016, and has emerged from bankruptcy. By working constructively with its creditors and other stakeholders, Penn Virginia emerged from bankruptcy having reduced its total long-term debt by approximately $1.1 billion and substantially improved its cost structure which provides the post-emergence Penn Virginia with a significantly improved capital structure to maximize the value of its asset portfolio. In conjunction with its emergence from bankruptcy and pursuant to the Plan, the Company closed on its new senior secured revolving credit facility led by Wells Fargo Bank, N.A., with a maximum note amount of $200 million and an initial borrowing base of $128 million. In addition, Penn Virginia received a $50 million new money contribution through a rights offering subscribed by a large portion of its existing unsecured bondholders, who, together with the Company's existing secured lenders, sponsored the Plan. Upon emergence, Penn Virginia will have approximately $75.4 million drawn on its new revolving credit facility and $10.0 million of unrestricted cash. Penn Virginia also disclosed that it has established a Board of Directors, comprised of Harry Quarls (Chairman), Darin G. Holderness and Marc McCarthy. Other Directors may be appointed at a later date. "[Mon]day begins a new chapter in the history of Penn Virginia," said Mr. Quarls. "We have emerged from bankruptcy with a significantly de-leveraged balance sheet and committed financial support from our senior lenders and other stakeholders. With improved liquidity and a stronger capital structure, we are well-positioned to realize the full value of our excellent asset portfolio." Mr. Quarls added, "On behalf of the Company, I would like to extend my sincere gratitude to the many groups whose hard work enabled Penn Virginia to complete the bankruptcy process in four months. I would like to thank our employees, customers and vendors for their patience, commitment and ongoing support as we worked through this financial restructuring. I also want to acknowledge the collaborative efforts of our senior lenders and noteholders during this process. We are committed to working hard to reward their support as we refocus our attention on our operations. We look forward to working closely with all of our key stakeholders as we implement our long-term strategic plan." In accordance with the Plan, Penn Virginia's existing common stock has been cancelled, and its new common stock will be issued to the bondholders and certain general unsecured claimholders. The Company anticipates that its common stock will be traded over the counter pending assignment of a new ticker symbol and anticipates listing on a major exchange at a later date. Jefferies is acting as financial advisor, Alvarez & Marsal is acting as restructuring advisor, and Kirkland & Ellis LLP is acting as legal counsel to the Company in connection with the bankruptcy process. Opportune is acting as financial advisor and Bracewell LLP is acting as legal counsel to Wells Fargo Bank, N.A. PJT Partners LP is acting as financial advisor and Milbank, Tweed, Hadley & McCloy LLP is acting as legal advisor for the Ad Hoc Committee of Noteholders. About Harry Quarls Harry Quarls currently serves as a Managing Director at Global Infrastructure Partners, a $33 billion infrastructure fund. He also serves as a Director for Woodbine Holdings LLC, Fairway Resources LLC, and Opal Resources LLC. He is Chairman of the Board for Woodbine Holdings. Previously, Mr. Quarls served as Managing Director and Practice Leader for Global Energy at Booz & Co., a leading international management consulting firm, and served as member of Booz's Board of Directors. Mr. Quarls earned a M.B.A. degree from Stanford University and also holds ScM. and B.S. degrees, both in chemical engineering, from M.I.T. and Tulane University, respectively. About Darin G. Holderness Darin G. Holderness, CPA, was the Senior Vice President, Chief Financial Officer and Treasurer of Concho Resources until May 2016. Mr. Holderness has over 20 years of experience in the energy sector including nine years with KPMG LLP where his practice was focused in the energy industry and over 17 years in industry in ever increasing roles of responsibility including serving as Vice President and Controller of Pure Resources, Vice President and Chief Financial Officer of Basic Energy Services, Vice President and Chief Accounting Officer of Pioneer Natural Resources, and most recently as Senior Vice President and Chief Financial Officer of Eagle Rock Energy Partners. Mr. Holderness is a 1986 graduate of Boise State University with a Bachelor of Business Administration in Accounting and is a Certified Public Accountant. About Marc McCarthy Marc McCarthy is a Senior Managing Director at Wexford Capital LP, an energy focused asset management firm, having joined them in 2008. Mr. McCarthy currently serves as Chairman of Mammoth Energy Services and previously served as director of Coronado Midstream, LLC. and Energy Partners Corp. as Chairman from 2009-2014. Previously, Mr. McCarthy worked in the Global Equity Research Department of Bear Stearns & Co., Inc. and was responsible for coverage of the international oil and gas sector. Mr. McCarthy joined Bear Stearns & Co. in 1997 and held various positions of increasing responsibility until his departure in June 2008, at which time he was a Senior Managing Director. Mr. McCarthy is a Chartered Financial Analyst and received a B.A. in Economics from Tufts University. 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. PERSISTENCE PARTNERS: Employs Coan Lewendon as General Counsel -------------------------------------------------------------- Persistence Partners IV LLC asks that the U.S. Bankruptcy Court for the District of Connecticut authorize it to employ Coan, Lewendon, Gulliver and Miltenberger, LLC, as general Chapter 11 counsel under general retainer, nunc pro tunc to Petition Date. As counsel, Coan Lewendon will: a. give the Debtor in Possession legal advice with respect to its business, operations, and the management of its property; b. negotiate arrangements with creditors respecting their claims and treatment of their claims in a Plan of Reorganization; c. institute and defend such litigation in this and other courts as counsel and the Debtor in Possession consider necessary and appropriate for the conduct of its reorganization; d. prepare on behalf of the Debtor in Possession necessary Petitions, Answers, Orders, Reports, Disclosure Statements, Plans and other papers; and e. perform all other legal services for the Debtor in Possession, which may be necessary. Rhonda Beninati, the sole shareholder of the Debtor's parent company, has paid to Coan Lewendon a prepetition retainer for fees and costs. The amount of funds held by counsel and not yet expended as of the date of the Petition. Coan Lewendon will charge fees at its normal hourly rates: Partners: $400 per hour Counsel: $320 per hour Associates: $250 per hour Paralegals: $95 to $110 per hour Carl T. Gulliver, Esq., an Attorney and Counselor at Law duly admitted to practice in the state of Connecticut and a member of Coan Lewendon, assures the Court that the Firm is a disinterested person, as that term is defined in Section 101(14) of the Bankruptcy Code. The Firm can be reached at: Carl T. Gulliver, Esq., COAN, LEWENDON, GULLIVER AND MILTENBERGER, LLC 495 Orange Street New Haven, CT 06511 Telephone: (203) 624-4756 E-mail: cgulliver@coanlewendon.com About Persistence Partners Persistence Partners IV LLC filed Chapter 11 bankruptcy petition (Bankr. Conn. Case No. 16-51161) on August 30, 2016. Joseph P. Beninati signed the petition as manager. Carl T. Gulliver, Esq., at Coan Lewendon Gulliver & Miltenberger LLC serves as the Debtors' counsel. Persistence Partners estimated assets in the range of $10 million to $50 million and estimated debts in the range of $500,000 to $1 million. PETROQUEST ENERGY: Announces Results of Exchange Offers ------------------------------------------------------- PetroQuest Energy, Inc. announced the early participation results of its private exchange offers and consent solicitation to Eligible Holders for its outstanding 10% Senior Notes due 2017 (CUSIP No. 716748 AA6) and its outstanding 10% Second Lien Senior Secured Notes due 2021 (CUSIP 716748 AE8 / U7167U AB0) for up to (i) $280.295 million aggregate principal amount of its newly issued 10% Second Lien Senior Secured PIK Notes due 2021, and (ii) 3,517,000 shares of its common stock. In the Consent Solicitation, the Company is soliciting consents from the holders of the 2021 Notes to adopt certain amendments to the indenture governing the 2021 Notes and the registration rights agreement with respect to the 2021 Notes. As of 5:00 p.m., New York City time, on Sept. 8, 2016, approximately $240.5 million in aggregate principal amount of the Old Notes, representing 85.8% of the outstanding aggregate principal amount of the Old Notes, had been validly tendered (and not validly withdrawn), and holders of approximately $127.5 million in aggregate principal amount of the 2021 Notes, representing 88.1% of the outstanding aggregate principal amount of the 2021 Notes had consented to the amendments to the 2021 Notes Indenture and 2021 Registration Rights Agreement. PetroQuest also announced that it has extended the Initial Early Tender Date to 5:00 p.m., New York City time, on Sept. 13, 2016. All other terms of the Exchange Offers and Consent Solicitation, as previously announced, will remain unchanged. Withdrawal rights expired on Sept. 8, 2016, at 5:00 p.m., New York City time. Accordingly, Eligible Holders who have previously tendered their Old Notes can no longer validly withdraw those notes from the Exchange Offers and Consent Solicitation, except to the extent required by law. For each $1,000 principal amount of Old Notes validly tendered and not validly withdrawn prior to the Early Tender Date, Eligible Holders will be eligible to receive the "Total Exchange Consideration" set forth below, which includes the "Early Tender Premium." For each $1,000 in principal amount of the Old Notes validly tendered after the Early Tender Date, Eligible Holders will be eligible to receive only the "Exchange Consideration" set forth below. The following sets forth the exchange consideration for the Old Notes: Title/CUSIP Number of Old Notes: 10% Senior Notes due 2017 / 716748 AA6 Maturity Date: September 1, 2017 Aggregate Principal Amount Outstanding: $135.6 million Exchange Consideration: $1,000 principal amount of New Notes Early Tender Premium: Portion of 3,517,000 shares of common stock on a pro rata basis with all Eligible Holders who validly tender 2017 Notes and 2021 Notes prior to the Early Tender Date, rounded down to the nearest whole share Total Exchange Consideration: $1,000 principal amount of New Notes and portion of 3,517,000 shares of common stock on a pro rata basis with all Eligible Holders who validly tender 2017 Notes and 2021 Notes prior to the Early Tender Date Title/CUSIP Number of Old Notes: 10% Second Lien Senior Secured Notes due 2021 / 716748 AE8 / U7167U AB0 Maturity Date: February 15, 2021 Aggregate Principal Amount Outstanding: $144.7 million Exchange Consideration: $1,000 principal amount of New Notes Early Tender Premium: Portion of 3,517,000 shares of common stock on a pro rata basis with all Eligible Holders who validly tender 2017 Notes and 2021 Notes prior to the Early Tender Date, rounded down to the nearest whole share Total Exchange Consideration: $1,000 principal amount of New Notes and portion of 3,517,000 shares of common stock on a pro rata basis with all Eligible Holders who validly tender 2017 Notes and 2021 Notes prior to the Early Tender Date The Exchange Offers and Consent Solicitation are being made upon the terms and subject to the conditions set forth in the Confidential Offering Memorandum and Consent Solicitation Statement and related letter of transmittal and consent, each dated Aug. 25, 2016. The Exchange Offers and Consent Solicitation will expire at 11:59 p.m., New York City time, on Sept. 22, 2016, unless extended. The closing of the Exchange Offers and Consent Solicitation is subject to, and conditioned upon, the satisfaction or waiver of conditions set out in the Offering Memorandum and Letter of Transmittal, including, among other things, the valid tender (without valid withdrawal) of at least 90% of the total combined outstanding aggregate principal amount of the 2017 Notes and the 2021 Notes, subject to PetroQuest's right to amend or terminate the Exchange Offers and Consent Solicitation prior to the Expiration Date. The Company has entered into support agreements with certain institutional holders, representing approximately 80% of the total aggregate principal amount of the Old Notes, in favor of the Exchange Offers and Consent Solicitation, which support agreements will not become effective until support agreements have been executed by holders that collectively hold no less than 87% of the total aggregate principal amount of the Old Notes. The New Notes and the Shares have not been registered under the Securities Act of 1933, as amended, or with any securities regulatory authority of any State or other jurisdiction. The New Notes and the Shares may not be offered or sold in the United States or to or for the account or benefit of any U.S. persons except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. The Exchange Offers will be made, and the New Notes and the Shares are being offered and will be issued, only to holders of Old Notes (1) in the United States, who are "qualified institutional buyers" as defined in Rule 144A under the Securities Act, in a private transaction in reliance upon the exemption from the registration requirements of the Securities Act provided by Section 4(a)(2) thereof and (2) outside the United States, who are persons other than U.S. persons as defined in Rule 902 under the Securities Act in offshore transactions in compliance with Regulation S under the Securities Act. The complete terms and conditions of the Exchange Offers and Consent Solicitation, as well as the terms of the New Notes and the Shares, are described in the Offering Memorandum and Letter of Transmittal, copies of which may be obtained by "Eligible Holders" by contacting D.F. King & Co., Inc., the information agent for the Exchange Offers and Consent Solicitation, at 48 Wall Street, 22nd Floor, New York, New York 10005, (212) 269-5550 (collect) or (800) 848-3409 (toll free) or via the following website: http://www.dfking.com/petroquest. A full-text copy of the press release is available for free at: https://is.gd/pcX7iW About the Company PetroQuest Energy, Inc. is an independent energy company engaged in the exploration, development, acquisition and production of oil and natural gas reserves in East Texas, Oklahoma, South Louisiana and the shallow waters of the Gulf of Mexico. PetroQuest's common stock trades on the New York Stock Exchange under the ticker PQ. As of June 30, 2016, Petroquest had $209 million in total assets, $433 million in total liabilities, and a total stockholders' deficit of $225 million. In its quarterly report for the period ending June 30, 2016, the Company stated, "Our substantially decreased level of capital spending has had and is expected to continue to have a negative impact on our production and cash flow from operating activities. We expect production to continue to decline throughout 2016 and when combined with current commodity prices and our existing cost structure, including 10% interest expense on the $280 million of debt represented by our 2017 Notes and 2021 Notes, we believe that we will continue to incur significant losses and negative cash flow from operating activities for the remainder of 2016. In addition, $136 million of the indebtedness represented by our 2017 Notes will mature on September 1, 2017 and would be reflected as a current liability on our September 30, 2016 balance sheet if not refinanced prior to the filing of our Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2016, which would raise substantial doubt about our ability to continue as a going concern," the Company stated in its quarterly report for the period ended June 30, 2016. "We are evaluating additional sources of liquidity including asset sales, joint ventures, exchange offers and alternative financing arrangements to replace the Credit Agreement, but there is no assurance that these sources will provide sufficient, if any, incremental liquidity. We are also evaluating various options to address the September 2017 maturity of our 2017 Notes as well as assessing our overall capital structure. These options include additional public or private exchanges of 2017 Notes for new secured debt and/or common stock, refinancing the 2017 Notes with unsecured debt and/or common stock as well as a broader restructuring of our 2017 and 2021 Notes. To assist the Board of Directors and management team in evaluating these options, we have retained Jefferies LLC and Seaport Global as our financial advisors and Porter Hedges LLP as our legal advisor. There is no assurance that any refinancing or debt or equity restructuring will be possible or that additional equity or debt financing can be obtained on acceptable terms, if at all. If we are unable to improve our liquidity position, and refinance or restructure our debt, we may seek bankruptcy protection to continue our efforts to restructure our business and capital structure. As a part of that process, we may have to liquidate our assets and may receive less than the value at which those assets are carried on our consolidated financial statements." PICO HOLDINGS: Bloggers Explain CEO Hart Bonus Workaround --------------------------------------------------------- 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 bloggers explain in greater detail, their plan to avoid bonus payments to PICO CEO John Hart: "The PICO Board can sell assets and return to shareholders only the proceeds that correspond to carrying value and administrative expenses. The Net Gain can be banked for corporate expenses. John 'The Juicer' Hart is SOL. The PICO Board should get on its horse and start selling assets now. The Bonus Plan is based on 'Plan Years,' which begin January 1 and end December 31. Administrative expenses, which shield asset sale proceeds from Juicer's greedy paws, can only be utilized in the year they are paid. Administrative Expenses paid in 2016 cannot be carried forward. Once 2016 is gone, those Administrative Expenses will be lost as a shield for asset sale proceeds. On the latest earnings call, PICO CFO Max 'Tangled' Webb stated that 2016 corporate expenses would be around $10.5 million. But Tangled Webb, as a potential Bonus recipient, has a vested interest in lowering that figure. Given all the shareholder activism expenses, high-priced professionals, retention of Keith Gottfried to answer retail shareholder Books & Records Requests, we bet 2016 Administrative Expenses are around $13 million. Final interpretation of 2016 Administrative Expenses will fall to the Compensation Committee. Check out this provision, under the heading "Administration," lifted right from the Bonus Plan: 'The Plan will be administered by the Compensation Committee of the Board of Directors of the Company. The Committee will have the sole discretion and authority to administer and interpret the Plan, and the decisions of the Committee will in every case be final and binding on all persons having an interest in the Plan.' Assuming $13 million in Administrative Expenses for 2016, the ideal asset for sale before the end of the year would have a price tag that is $13 million above carrying value. That way, the entirety of the proceeds could be returned to shareholders, with no Bonus paid to Juicer and minimal cash banked at the corporate level. Under no circumstances should the PICO Board close out 2016 without an asset sale. If it does, $13 million in Administrative Expense shield -- with a value of $2.6 million given Juicer's 20% Bonus Allocation -- will be lost forever. This $13 million is scarcely different from a deferred tax asset that is poised to expire; both represent assets to shareholders that must be utilized. Juicer's bad faith result was not perfect and RPN found the weak link in the chain. Juicer will likely initiate litigation. But as PICO Chairman Raymond Marino advised us over and over again, Juicer entered into an iron-clad, binding contract that cannot be altered without mutual consent. So be it -- Juicer has been hung by his own petard. Since Mr. Marino has publicly affirmed of the sanctity of the Hart Compensation Scheme, we expect such finality to cut both ways. The PICO Board must meet any litigation initiated by Juicer with equal or superior force. Given the bad faith genesis of the Hart Compensation Scheme, shareholder's Say on Pay vote, and the value destruction inflicted upon PICO shareholders at the hands of Juicer, we expect the Board to fight John Hart to the end of the earth in defense of PICO's right to enforce the contract terms that are now advantageous to PICO owners. Anything less will be a betrayal of the owners of the business." PODIUM PERFORMANCE: Hires White-Boyd as Attorney ------------------------------------------------ Podium Performance, LLC seeks authorization from the U.S. Bankruptcy Court for the Southern District of Florida to employ White-Boyd Law, PA as attorney. The Debtor requires White-Boyd to: a. advise to the Debtor with respect to its powers and duties as Debtor-in-Possession and the continued management of its business operations; b. advise the Debtor with respect to its responsibilities in complying with the US Trustee's Operating Guidelines and Reporting Requirements and with the rules of the court; c. prepare motions, pleadings, orders, applications, adversary proceedings, and other legal documents necessary in the administration of the case; d. protect the interest of the Debtor in all matters pending before the court; and e. represent the Debtor in negotiation with its creditors in the preparation of a plan. Nadine V. White-Boyd, Esq., employed by the firm of White-Boyd Law, PA, assured the Court that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtor and its estates. White-Boyd may be reached at: Nadine V. White-Boyd, Esq. White-Boyd Law, PA 5589 Okeechobee Blvd., Suite 103 West Palm Beach, FL 33417 About Podium Performance, LLC Podium Performance, LLC filed a Chapter 11 bankruptcy petition (Bankr. S.D.Fla. Case No. 16-21400) on August 18, 2016. Nadine V. White-Boyd, Esq. at White-Boyd Law, PA serves as bankruptcy counsel. The Debtor's assets and liabilities are both below $1 million. PRO-FIT DEVELOPMENT: 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 Pro-Fit Development, Inc. Pro-Fit Development, Inc. filed a chapter 11 petition (Bankr. M.D. Fla. Case No. 16-06717) on Aug. 4, 2016. At the time of filing, the Debtor had total assets of $1.53 million and total liabilities of $1.41 million. The Debtor is represented by Buddy D. Ford, Esq., Jonathan A. Semach, Esq., and J. Ryan Yant, Esq., at Buddy D. Ford, P.A. PROLINE CONCRETE: Hires Amigone Sanchez as General Ch. 11 Counsel ----------------------------------------------------------------- Proline Concrete of WNY, Inc., seeks authority from the U.S. Bankruptcy Court for the Western District of New York to employ Amigone, Sanchez & Mattrey, LLP, as general counsel. Prior to the filing of the Debtor's petition, the Debtor retained Amigone Sanchez to advise and represent the Debtor with respect to various legal matters, including the preparation and commencement of the Chapter 11 proceeding. The Debtor says that it has again retained Amigone Sanchez, subject to the approval of the Court, for the purpose of rendering legal services, as needed throughout the course of these Chapter 11 proceedings, and representing and assisting the Debtor in carrying out their duties as Debtor in Possession under Chapter 11 of the U.S. Bankruptcy Code. The current hourly rates of the individual attorneys, who will render services during the course of these proceedings are: Arthur G. Baumeister, Jr., Esq., at $275 per hour, and Scott Bogucki, Esq., at $150 per hour. Prior to the filing of the Debtor's petition, the Debtor tendered the sum of $15,000 to Amigone Sanchez, for legal fees incurred prior to the commencement of the Chapter 11 proceeding and that may be incurred by the Debtor in connection with the present Chapter 11 proceedings. Arthur G. Baumeister, Jr., a member of Amigone Sanchez, assures the Court that Amigone Sanchez does not hold or represent any interest adverse to the Debtor's estates, nor has it, at any time since the commencement of the proceeding, held any such interest. He adds that the Firm is a disinterested person for the purpose of representing and assisting the Debtor in carrying out their duties under the Bankruptcy Code. The Firm can be reached at: Arthur G. Baumeister, Jr., Esq. AMIGONE, SANCHEZ & MATTREY, LLP 1300 Main Place Tower 350 Main Street Buffalo, NY 14202 Telephone: (716) 852-1300 Facsimile: (716) 852-1344 E-mail: abaumeister@amigonesanchez.com About Proline Concrete of WNY, Inc. Proline Concrete of WNY, Inc. filed a chapter 11 petition (Bankr. W.D.N.Y. Case No. 16-11455) on July 25, 2016. The petition was signed by James R. Sickau, president. The Debtor is represented by Arthur G. Baumeister, Jr., Esq., at Amigone, Sanchez & Mattrey LLP. The case is assigned to Judge Carl L. Bucki. At the time of the filing, the Debtor estimated assets and debts at $1 million to $10 million. QUEENSBORO 1: Seeks to Hire Sembler Company as Property Manager --------------------------------------------------------------- Queensboro 1, LLC, asks the U.S. Bankruptcy Court for the Middle District of Florida to enter an order authorizing the employment of The Sembler Company as property manager. The bankruptcy estate includes a shopping center located at 1794 22nd Street S, in Saint Petersburg, Florida. Sembler has been the property manager for the past year and is familiar with the tenants and the operation of the Debtor's shopping center, the Debtor informs the Court. The Debtor adds that Sembler has operated as property manager pursuant to an agreement with Andrew Bolnick, the Debtor's receiver, for the past year and is willing to continue as property manager under the same terms and conditions for the Debtor. The Debtor believes that Sembler is well qualified to perform the services necessary in this case. Sembler can be reached at: The Sembler Company Corporate Headquarters 5858 Central Avenue St. Petersburg, FL 33707 Toll Free: 800-940-6000 Telephone: (727) 384-6000 Facsimile: (727) 343-4272 Web site: http://www.sembler.com/ About Queensboro 1 Queensboro 1, LLC, owns a shopping center located in Saint Petersburg, Florida. Queensboro filed Chapter 11 bankruptcy petition (Bankr. M.D. Fla. Case No. 16-07289) on August 24, 2016. The petition was signed by Larry J. Newsome, president of managing member. David W Steen, Esq., at David W. Steen, P.A., serves as the Debtors' counsel. The Company estimated both assets and liabilities in the range of $1 million to $10 million. R&M GENERAL: Taps Hodges Doughty as General Bankruptcy Counsel -------------------------------------------------------------- R&M General Partnership asks for approval from the U.S. Bankruptcy Court for the Eastern District of Tennessee to employ Dean B. Farmer, Esq., and Kandi R. Yeager, Esq., and the firm of Hodges, Doughty & Carson, PLLC, to represent the Debtor as general counsel. As counsel, the Firm will, among other things: (a) prepare on its behalf the statements and schedules, Plan of Reorganization and all other related pleadings required in the proceeding, including employment of professionals and operation of the Debtor's business; (b) represent the Debtor in filing all pleadings and court appearances in the United States Bankruptcy Court for the Eastern District of Tennessee as well as in other courts that may be required in this case, including a Plan of Reorganization; and (c) assist in resolution of issues with secured creditors and unsecured creditors. The Debtor proposes to employ the attorneys at an hourly rate of $300 per hour for Dean B. Farmer; $250 per hour for Kandi R. Yeager and all other partners, $200 per hour for associates, and $95 per hour for paralegal assistants with the total amount of the compensation to be fixed and determined by the Court upon proper application throughout the life of the case. The Debtor has provided a retainer for representation of legal services and expenses incurred by the Debtor and by the applicants. Counsel has received a $10,000 retainer as of the date of petition paid behalf of general partner Dunlap/Hamilton Crossing Centre, LLC. In addition, the Debtor has agreed to make additional contributions to the retainer to ensure that the retainer will be kept in the full amount and fully replaced if two thirds drawn down. A monthly "carve out" will be added to the retainer to ensure this continued replacement in the amount of $4,000 a month prior to payment of fees and expenses awarded in the final fee application. Counsel has, as of the Petition Date, segregated $4,000 in a retainer for prepetition fees and expenses incurred in preparation of and in contemplation of filing the bankruptcy petition on behalf of R&M General and to avoid listing counsel as a creditor. In addition, the filing fee of $1,717 has been paid. Counsel has retained a general retainer for continued representation of the debtor postpetition in the amount of $4,283. Counsel will not have the actual fees and expenses incurred on behalf of the Debtor until approximately September 6, 2016. Dean B. Farmer, Esq., a member of Hodges Doughty, assures the Court that the Firm does not know of any adverse interest related to the Debtor, such that the Firm would not be disinterested pursuant to Section 101(14) of the Bankruptcy Code. The Firm can be reached at: Dean B. Farmer, Esq. Kandi R. Yeager, Esq. HODGES, DOUGHTY & CARSON, PLLC Post Office Box 869 Knoxville, TN 37901-0869 Telephone: (865) 292-2307 Facsimile: (865) 292-2252 E-mail: dfarmer@hdclaw.com kyeager@hdclaw.com About R&M General Partnership Headquartered in Knoxville, Tennessee, R&M General Partnership is engaged in single asset real estate business. R&M filed Chapter 11 bankruptcy petition (Bankr. E.D. Tenn. Case No. 16-32601) on August 30, 2016. The petition was signed by John R. Dunlap, Jr., chief manager of Dunlap/Hamiton Crossing Centre, LLC, general partner of the Debtor. Dean B. Farmer, Esq., at Hodges, Doughty & Carson PLLC serves as the Debtors' counsel. R&M estimated both assets and liabilities in the range of $1 million to $10 million. R&M GENERAL: Wants to Access Cash Collateral of Wells Fargo ----------------------------------------------------------- R&M General Partnership asks the U.S. Bankruptcy Court for the Eastern District of Tennessee for authorization to use cash collateral. The Debtor relates that it was indebted to Goldman Sachs Commercial Mortgage Capital, LP, which the Debtor believes was purchased by Wells Fargo Commercial Mortgage Servicing. The Debtor further relates that its indebtedness is in the approximate amount of $3,800,000 and is secured by property consisting of a shopping center, called Horseshoe Center, located at 715-743 Louisville Road, Alcoa, Tennessee. The Debtor tells the Court that currently it has no present alternative borrowing source from which it could secure additional funding to operate its business. The Debtor further tells the Court that it should be permitted to use cash collateral so that it can maintain possession of its property and continue in its business activity in an effort to achieve successful reorganization. The Debtor proposes a monthly carve out of $4,000.00 for payment of professional fees. The Debtor further proposes to make payments to Wells Fargo Commercial Mortgage Servicing in the amount of $18,145 per month as adequate protection for its secured interest. A full-text copy of the Final Cash Collateral Order, dated September 1, 2016, is available at https://is.gd/UYkzrl About R&M General Partnership R&M General Partnership filed a Chapter 11 petition (Bankr. E.D. Tenn. Case No. 16-32601), on August 30, 2016. The Debtor's counsel is Dean B. Farmer, Esq. at Hodges, Doughty & Carson PLLC, of Knoxville, TN. The petition was signed by John R. Dunlap, Jr., chief manager of Dunlap/Hamiton Crossing Centre, LLC, general partner of the Debtor. The case is assigned to Judge Suzanne H. Bauknight. At the time of the filing, the Debtor estimated assets and liabilities at $1 million to $10 million. A copy of the Debtor's list of 11 unsecured creditors is available for free at http://bankrupt.com/misc/tneb16-32601.pdf RESIDENTIAL CAPITAL: Stay Does Not Bar Foreclosure Sale of HOA Lien ------------------------------------------------------------------- In the case captioned INVEST VEGAS, LLC, Plaintiff, v. 21ST MORTGAGE CORPORATION; CALWESTERN RECONVEYANCE CORPORATION; NATIONAL CITY MORTGAGE, A DIVISION OF NATIONAL CITY BANK OF INDIANA; COMMONWEALTH LAND TITLE INSURANCE COMPANY; ONTARIO CONDOMINIUM RENTAL SERVICES, INC.; TICOR TITLE OF NEVADA, INC.; HARLEE S. CARTER; LANA CARTER; DARREN C. BOUTON; DOES I THROUGH X, INCLUSIVE; ROE BUSINESS ENTITIES I THROUGH X, INCLUSIVE, Defendants, Adv. Pro. 16-01029 (MG)(Bankr. S.D.N.Y.), Judge Martin Glenn of the United States Bankruptcy Court for the Southern District of New York denied the Defendant's motion for summary judgment and granted the Plaintiff's cross motion for summary judgment. The dispute relates to real property located at 230 E. Flamingo Road, #301, in Las Vegas, Nevada. The Defendant is the holder of the promissory note and first priority deed of trust on the Subject Property. The Defendant acquired its interest in the Real Property Instruments pursuant to the terms of an order that was granted, pursuant to sections 105, 363, and 365 of Bankruptcy Code. On January 14, 2015, the Plaintiff commenced an action in the Nevada District Court seeking to quiet title against any and all parties, among others, the Defendant, who might claim an interest in the Subject Property. The Nevada Action was ultimately removed to the United States District Court for the District of Nevada and then transferred to this Court. In the Nevada Action, the Nevada District Court held -- in denying the Defendant's motion to remand -- that the Defendant's mortgage security in the Subject Property was part of the bankruptcy estates of the Debtors. On the question of whether the homeowners' association ("HOA") Lien Sale and the subsequent completion of the HOA Lien Sale violated the automatic stay, the Nevada Federal Court noted that the property protected by the automatic stay was a security interest in the Subject Property, but not the Subject Property itself, and, therefore, when the Meridian HOA foreclosed on the Subject Property, it did not foreclose on the property of the Debtors' estates. However, the Nevada District Court noted that the foreclosure had the effect of extinguishing the security interest that was indeed property of the Debtors' estates. The Nevada District Court left open the question whether the HOA Lien Sale violated the automatic stay, by rendering valueless property of the Debtor that was previously valuable. On January 25, 2016, the Nevada District Court granted 21st Mortgage's motion to transfer the action to this Court. The Defendant contends that BH acquired the Real Property Instruments "free and clear of all Interests of any kind or nature whatsoever" pursuant to the terms of the Sale Order. Accordingly, the Defendant argues that its interest in the Real Property Instruments is free and clear of all interests. Moreover, the Defendant contends that the Plaintiff, a sophisticated investor, was charged with due diligence in its purchase of the Real Property Instruments. The Defendant argues that validating HOA Lien Sale would effectively deprive the Defendant of the value of the Real Property Instruments. The Plaintiff argues that the Subject Property was not part of the bankruptcy estate and therefore the HOA Lien Sale did not violate the automatic stay and the extinguishment of the Debtor's junior lien, by a superpriority lien creditor outside of the bankruptcy, was not a violation of the automatic stay. The Plaintiff argues that the bankruptcy estate was limited to the junior lien interest (i.e., its equity interest in the deed of trust) and the bankruptcy estate did not include the real property that secured the interest. Because the Subject Property was not property of the bankruptcy estate, the HOA Lien Sale did not violate the automatic stay and was therefore valid. The Court concludes that the automatic stay did not bar the nonjudicial foreclosure sale of the HOA lien because the Debtors did not have an interest in the Subject Property, so it was not property of the estate subject to the automatic stay after the Debtors filed their chapter 11 cases. As a result, Invest Vegas acquired the property, no longer subject to the deed of trust owned by 21st Mortgage. The issue here is framed in cross motions for summary judgment. There are no disputed issues of material fact. Full-text copies of the Memorandum Opinion and Order dated August 30, 2016, is available at https://is.gd/FuMZZq from Leagle.com. The court issued a Corrected Memorandum Opinion dated August 31, 2016, a full-text copy of which is available at https://is.gd/5scwkg from Leagle.com. The Correct Memorandum Opinion included technical changes. Invest Vegas, LLC, Plaintiff, is represented by CRYSTAL L. ELLER, Esq., ROBERT B. NOGGLE, Esq. -- NOGGLE LAW PLLC, Kenneth A. Reynolds, Esq. -- kreynolds@mklawnyc.com -- McBreen & Kopko. 21st Mortgage Corporation, Defendant, is represented by Diane Bradshaw, Esq. -- dbradshaw@helfandlaw.com -- HELFAND & HELFAND, Andrew B. Helfand, Esq. -- ahelfand@helfandlaw.com -- Helfand and Helfand. About Residential Capital Residential Capital LLC, the unprofitable mortgage subsidiary of Ally Financial Inc., filed for bankruptcy protection (Bankr. S.D.N.Y. Lead Case No. 12-12020) on May 14, 2012. Neither Ally Financial nor Ally Bank is included in the bankruptcy filings. ResCap, one of the country's largest mortgage originators and servicers, was sent to Chapter 11 with 50 subsidiaries amid "continuing industry challenges, rising litigation costs and claims, and regulatory uncertainty," according to a company statement. ResCap disclosed $15.7 billion in assets and $15.3 billion in liabilities at March 31, 2012. Centerview Partners LLC and FTI Consulting are acting as financial advisers to ResCap. Morrison & Foerster LLP is acting as legal adviser to ResCap. Curtis, Mallet-Prevost, Colt & Mosle LLP is the conflicts counsel. Rubenstein Associates, Inc., is the public relations consultants to the Company in the Chapter 11 case. Morrison Cohen LLP is advising ResCap's independent directors. Kurtzman Carson Consultants LLP is the claims and notice agent. Ray C. Schrock, Esq., at Kirkland & Ellis LLP, in New York, serves as counsel to Ally Financial. ResCap sold most of the businesses for a combined $4.5 billion. The Bankruptcy Court in November 2012 approved ResCap's sale of its mortgage servicing and origination platform assets to Ocwen Loan Servicing, LLC and Walter Investment Management Corporation for $3 billion; and its portfolio of roughly 50,000 whole loans to Berkshire Hathaway for $1.5 billion. Judge Martin Glenn in December 2013 confirmed the Joint Chapter 11 Plan co-proposed by Residential Capital and the Official Committee of Unsecured Creditors. RIVERSIDE MILITARY: Fitch Affirms BB+ $66MM Refunding Bonds Rating ------------------------------------------------------------------ Fitch Ratings has affirmed the 'BB+' rating on approximately $66.9 million of Gainesville Redevelopment Authority, GA series 2007 revenue refunding bonds issued on behalf of Riverside Military Academy (RMA). The Rating Outlook is Stable. SECURITY The bonds are an absolute and unconditional obligation of RMA, secured by a first lien on the academy's campus and a cash-funded debt service reserve sized to maximum annual debt service (MADS). KEY RATING DRIVERS MIXED FINANCIAL PROFILE: The 'BB+' rating primarily reflects this military-style boys' college preparatory school's recurring operating deficits, revenue concentration, and very high debt burden. Partially offsetting factors include adequate balance sheet resources that, while depleted from previous years, continue to support the rating. IMPROVED OPERATIONS: RMA's margins have improved but were still negative on a full accrual basis in fiscal 2015 (and projected fiscal 2016). However, enrollment growth, tuition increases, and expense management have enabled RMA to steadily reduce its deficit over time. RELATIVELY STABLE ENROLLMENT: RMA's small student population continues to see some growth, even with modest annual tuition increases. Enrollment at the start of fall 2015 exceeded management's expectations in the academy's 2010 multiyear business plan; however, the enrollment level fluctuates throughout the year. HIGH LEVERAGE: RMA's debt burden remains very high, with MADS representing 27.6% of fiscal 2015 unrestricted operating revenues. The academy remains modestly reliant on endowment to cover annual debt service, as institutional coverage had been less than 1.0x in fiscal years 2010-2014, and 1.0x in fiscal 2015. RMA has no new debt plans at this time, with fundraising expected to support capital expenditures. RATING SENSITIVITIES ENROLLMENT STABILITY: Riverside Military Academy's inability to maintain stable enrollment, given the academy's significant reliance on net tuition and fees, could negatively pressure the rating. BALANCE SHEET LIQUIDITY: Continuation of positive trends in RMA's balance sheet ratios are necessary to maintain the current rating. Any significant deviation from the current level of the academy's financial cushion may have negative rating implications. CREDIT PROFILE Founded in 1907, RMA is a military-style college preparatory school for boys, offering boarding and day school programs for grades 7-12. The academy is located on a 206-acre campus in Gainesville, Georgia, about 60 miles northeast of Atlanta. Beginning June 2016, Col. William Gallagher was installed as the ninth President of RMA after the retirement of Col. James Benson. Col. Gallagher's professional background includes serving as Dean of the College and Commandant of Cadets at Valley Forge Military Academy, Chief Operating Officer for New York University in Abu Dhabi, as well as 28 years as an active Army officer. BALANCE SHEET STILL SUPPORTS RATING RMA's balance sheet resources continue to support the rating. Available funds (AF), defined by Fitch as unrestricted cash and investments, remained flat over the prior year at $36.3 million at May 31, 2015, equal to a solid 169.7% of expenses but a more modest 52.6% of debt. Preliminary fiscal 2016 results indicate that available funds ratios will be similar or slightly lower than one year prior. The nominal amount of AF has been flat or declined modestly in recent years, due to investment losses and use of the endowment to support annual debt service. RMA's current liquidity position, although reduced from previous levels, continues to support the rating. OPERATIONS IMPROVE THOUGH REMAIN NEGATIVE Operating deficits persist; however, RMA's operating margin improved significantly to negative 4.5% in fiscal 2015 compared to negative 15.4% in fiscal 2014. There has been modest but steady operating improvement since at least fiscal 2010. Improvement in fiscal 2015 operations is a direct result of a 15% year-over-year increase in net tuition and fees during the 2014-15 academic year. Preliminary fiscal 2016 operations indicate that the margin is expected to be similar or slightly weaker than fiscal 2015. Increased capital expenditures and deferred maintenance will be partially offset by strong fall 2015 (fiscal 2016) enrollment gains. At Fitch's last review, management indicated its goal was to lower its endowment draw to 5% over several years, per the investment policy adopted by RMA's board. The draw for operations was 4.4% in fiscal 2015; however, for fiscal 2016 management expects its endowment draw to be approximately 6%. Fitch considers the more traditional draw of 5% of endowment market value as sustainable over the long term, and will monitor operations and the endowment draw over time. Fitch notes positively that net operating revenues continue to grow and are ahead of plan, due mostly to enrollment growth, steady tuition increases, and moderate tuition discounting. RMA management reports it continues to monitor and contain operating expenses. The Stable Outlook is based on Fitch's expectation that RMA will sustain recent operating improvement supported by improved enrollment trends. Reversal in operating improvement could lead to negative rating action. STEADY ENROLLMENT Enrollment typically fluctuates during an academic year. RMA measures its initial fall enrollment and tracks rolling enrollment as cadets leave and enroll during the year. Enrollment has grown following declines during 2005-2008. For fall 2015 (fiscal 2016), initial enrollment increased to 526 cadets from 485 the prior year. During the academic year, enrollment through April 2016 was 623, but ended the year at 534, as 89 students either withdrew, were dismissed, or were expelled. For fall 2016, RMA is slightly under budget as of August 2016, but management underscored that the academy typically enrolls up to 100 new students throughout the remainder of the academic year. Fitch views RMA's rating stability as partly predicated on the academy's ability to maintain stable-to-growing enrollment given its high reliance on tuition and fee revenue (averaging 83% of unrestricted operating revenues over the past five fiscal years) in conjunction with its ability to manage through fluctuations. HIGH LEVERAGE Outstanding debt was $66.9 million as of May 31, 2016. The series 2007 bonds are fully amortizing fixed-rate debt, with level debt service of about $5.6 million. RMA's debt burden remains very high, with fiscal 2014 MADS equal to 27.6% of unrestricted operating revenues. No new debt is planned, and Fitch views RMA as having no additional debt capacity. Debt service coverage had been below 1.0x fiscal 2010-2014, and 1.0x in fiscal 2015. The academy uses reserves and its quasi-endowment to pay part of debt service. Management reports that no bond covenants have been violated, and Fitch will monitor operations over time for continued improvement in debt service coverage and any moderation in the academy's high debt burden. RIVERSIDE MULCH: Oct. 14 Liquidation Plan Confirmation Hearing -------------------------------------------------------------- Judge Patrick M. Flatley of the U.S. Bankruptcy Court for the Northern District of West Virginia on Sept. 6, 2016, approved Riverside Mulch, Inc.'s Amended Disclosure Statement and authorized the Debtor to solicit creditors' votes on the Second Amended Plan of Reorganization. On August 31, 2016, a hearing was scheduled to consider to consider whether the Disclosure Statement contains adequate information, pursuant to Bankruptcy Code Section 1125, to allow the Debtor to solicit votes on its Plan. Prior to the hearing, the parties asked that the hearing be converted to a telephonic hearing and the Debtor be allowed to modify the language of the Disclosure Statement and Plan to address objections raised by the U.S. Trustee to the Disclosure Statement and to facilitate the affirmative votes needed for confirmation of the plan. The court converted the hearing to a telephonic status conference and following the hearing, the Debtor filed an Amended Disclosure Statement which addressed all of the concerns raised by the U.S. Trustee in her objection. The court finds the Amended Disclosure Statement contains adequate information pursuant to Bankruptcy Code Section 1125, to enable creditors to make an informed judgment about the Debtor's Chapter 11 Plan. A hearing will be held on Oct. 14, 2016, at 11:00 a.m., to consider confirmation of the Plan and any timely objections thereto. September 30, 2016, is fixed as the last day for filing acceptances or rejections of the Chapter 11 Plan and the last day for filing with the Court and serving written objections to confirmation of the Chapter 11 Plan. The Debtor's Plan proposes to sell all of its assets through a bidding process, which will start once the plan takes effect. The real estate related to Riverside Mulch's former operations will be retained by the company and the property sold. The value of the assets at sale is estimated to be $6.5 million. The sale proceeds of the real estate will be first escrowed until taxes are determined and paid. Once taxes are paid, the remaining amount will be used to pay the balance of the primary loan to the extent secured and, thereafter, paid to creditors. All of Riverside Mulch's remaining assets will be sold by deeds and assignments executed by the company, and net proceeds will be paid to creditors from sales. Riverside Mulch has hired Mike Matlat of GS Partners as realtor, according to the disclosure statement detailing the plan. After the bankruptcy court confirms the liquidating plan, Riverside Mulch will cease all operations except its security and accounting operations. About Riverside Mulch Riverside Mulch, Inc., sought protection under Chapter 11 of the Bankruptcy Code (Bankr. N. D. W.Va. Case No. 15-01109) on Nov. 13, 2015. The petition was signed by Adam V. Stump, Sr., president. At the time of the filing, the Debtor estimated its assets and liabilities at $1 million to $10 million. ROCKY ASPEN: Ch.11 Trustee Taps Cordes & Company as Accountant -------------------------------------------------------------- Michael L. Staheli, the Chapter 11 Trustee of Rocky Aspen, LLC, seeks authorization from the U.S. Bankruptcy Court for the District of Colorado to employ Cordes & Company to provide accounting and related services to the Chapter 11 Trustee, nunc pro tunc to August 2, 2016. The Trustee requires Cordes & Company to provide: (a) general administration of the case such as establishing and monitoring bank accounts, initiating wires; (b) comply with the Trustee's obligations with respect to financial and accounting recordkeeping and disclosure; (c) perform accounting-related tasks and functions for the Trustee and the estate; and (d) provide forensic accounting services and related analytical tasks regarding the nature and extent of the Debtor's assets, liabilities, and financial transactions. Cordes & Company will be paid at these hourly rates: Edward B. Cordes $385 Robert Neirynck $235 Beverly Blank $125 Other Support Staff $70-$125 Cordes & Company will also be reimbursed for reasonable out-of-pocket expenses incurred. Robert E. Neirynck, director and senior project manager of Cordes & Company, informed the Chapter 11 Trustee that Cordes & Co. has: (a) no connection with the Debtor, its creditors, or other parties-in-interest in the Debtor's case; (b) does not hold any interest adverse to the Debtor's estate; and (c) believes Cordes & Co. is a "disinterested person" within the meaning of section 101(14) of the Bankruptcy Code. Cordes & Company can be reached at: Robert E. Neirynck CORDES & COMPANY 5299 DTC Blvd., Suite 815 Greenwood Village, CO 80111 Tel: (303) 721-8755 Rocky Aspen, LLC, sought protection under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the District of Colorado (Denver) (Case No. 16-12194) on March 11, 2016. The petition was signed by Stephen Goglia, co-manager of Rocky Aspen, LLC. The Debtor is represented by David M. Miller, Esq., at Berenbaum Weinshienk. The case is assigned to Judge Elizabeth E. Brown. The Debtor estimated both assets and liabilities in the range of $1 million to $10 million. ROTARY DRILLING: Creditors' Panel Hires McKool Smith as Counsel --------------------------------------------------------------- The Official Committee of Unsecured Creditors of Rotary Drilling Tools USA, LLC and its debtor-affiliates, seeks authorization from the U.S. Bankruptcy Court for the Southern District of Texas to retain McKool Smith, P.C. as counsel, nunc pro tunc to July 27, 2016. The Committee requires McKool Smith to: (a) advise the Committee with respect to its rights, powers, and duties; (b) assist and advise the Committee in its consultations with the Debtors in relation to the administration of these cases; (c) assist the Committee's investigation of the acts, conduct, assets, liabilities, and financial condition of the Debtors and of the operation of Debtors' businesses; (d) assist the Committee in its analysis of and negotiation with the Debtors, or any third party concerning matters related to, among other things, the terms of a chapter 11 plan; (e) assist the Committee in requesting the appointment of a trustee or examiner, should such action become necessary; (f) prepare all necessary motions, applications, responses, objections, reports and pleadings on behalf of the Committee; (g) review, analyze and respond as necessary to all applications, motions, orders, statements of operations and schedules filed with the Court, and advise the Committee as to their propriety; and (h) perform such other legal services as may be required to represent the interests of the Committee and unsecured creditors in the Bankruptcy Case. McKool Smith will be paid at these hourly rates: Christopher D. Johnson $495 Benjamin W. Hugon $350 McKool Smith will also be reimbursed for reasonable out-of-pocket expenses incurred. Christopher Johnson, senior counsel of McKool Smith, 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. McKool Smith can be reached at: Christopher D. Johnson, Esq. Benjamin W. Hugon, Esq. MCKOOL SMITH, P.C. 600 Travis, Suite 7000 Houston, TX 77002 Tel: (713) 485-7300 Fax: (713) 485-7344 About Rotary Drilling Tools USA Rotary Drilling Tools USA, LLC, manufactures and markets oilfield drilling tubular tools. Rotary Drilling Tools sought Chapter 11 protection (Bankr. S.D. Tex. Case No. 16-33435) on July 6, 2016. Judge Jeff Bohm is assigned to the case. The Debtor estimated assets and liabilities in the range of $10 million to $50 million. Brooke B Chadeayne, Esq., and Elizabeth M Guffy, Esq., at Locke Lord Bissell & Liddell, LLP, serve as the Debtor's counsel. The petition was signed by Bryan M. Gaston, chief restructuring officer. The Office of the U.S. Trustee appointed seven creditors to serve on the official committee of unsecured creditors in the Chapter 11 cases of Rotary Drilling Tools USA, LLC, and its affiliates. The Committee is represented by Christopher D. Johnson, Esq., Hugh M. Ray, III, Esq., and Benjamin W. Hugon, Esq., at McKool Smith P.C. RP CROWN: S&P Retains 'CCC+' CCR on CreditWatch Positive -------------------------------------------------------- S&P Global Ratings said that its 'CCC+' corporate credit rating on Scottsdale, Ariz.-based RP Crown Parent LLC, which markets products under the JDA Software Group Inc. brand, remains on CreditWatch, where S&P placed it with positive implications on Aug. 22, 2016. At the same time, S&P assigned its 'B' issue-level rating and '3' recovery rating to the company's proposed $1.2 billion secured term loan due 2023 and $125 million secured revolving credit facility due 2021. The '3' recovery rating indicates S&P's expectation for meaningful recovery (50%-70%; upper half of the range) of principal in the event of a payment default. Additionally, S&P will withdraw its ratings on the company's existing bank debt after the transaction closes and the debt is repaid. The CreditWatch action followed JDA's announcement that it will receive $570 million in new equity from The Blackstone Group L.P. and New Mountain Capital LLC, which it will use to reduce debt. "After the transaction closes, we expect to raise the corporate credit rating to 'B' from 'CCC+', remove it from CreditWatch, and assign a stable rating outlook if the capital structure is implemented as proposed," said S&P Global Ratings' credit analyst Christian Frank. "The prospective upgrade also reflects the improved cash flow that will result from the expected $70 million in interest expense savings from the proposed transaction and the extension of the company's debt maturities." S&P expects funds from operations (FFO) cash interest coverage to increase to the high-2x area from 1.4x currently, and annual unadjusted free operating cash flow (FOCF) to increase to the $100 million area or higher from last-12-months FOCF of negative $8 million. JDA has underperformed S&P's expectations since its leveraged buyout (LBO) almost four years ago due to deep cuts and unexpected attrition within the sales force causing license sales to fall by approximately one-third from pre-LBO pro forma levels. The company is starting to realize the benefits of the sales force reinvestment it began in 2014, with license sales up 37% year-over-year for the first half of 2016. Cloud revenue has grown over the last several quarters, but the segment is still small. Most of the segment remains hosting services for perpetual license software, but software-as-a-service (SaaS) offerings are growing more quickly. S&P expects the fast growth rate to continue as the company rolls out more SaaS products. S&P will monitor developments related to the recapitalization and resolve the CreditWatch placement after the transaction closes. At that time, S&P expects to raise the corporate credit rating to 'B' from 'CCC+' and remove it from CreditWatch if the capital structure is implemented as proposed. If JDA changes the proposed financing, S&P could revise the rating differently than it has described, and S&P could take rating actions on the new debt. If S&P raises the rating as it describes, the outlook would be stable and reflect S&P's expectation for EBITDA growth due to better license sales from sales force retooling, FFO cash interest coverage in the high-2x area, and annual unadjusted FOCF of around $100 million or greater. S&P could lower the rating during the 12 months following the transaction if sales force changes don't result in improved license sales as S&P expects, or if economic pressures cause demand to decline, such that the company sustains FFO cash interest coverage in the low-2x area. S&P could also lower the rating if the company breaches this threshold because of acquisitions or shareholder returns. S&P estimates that EBITDA would need to fall by $20 million or about 8% to reach these levels. S&P doesn't expect to raise the rating during the 12 months following the transaction due to the company's private equity ownership, which S&P believes is likely to preclude sustained leverage reduction. Any upgrade would likely be in the context of a public equity offering with leverage below 5x. RPM AUTOMOTIVE: Trustee Hires Manty & Associates as Counsel ----------------------------------------------------------- Nauni Jo Manty, the Chapter 11 Trustee of RPM Automotive, LLC, seeks authorization from the U.S. Bankruptcy Court for the District of Minnesota to employ Manty & Associates, P.A. as counsel to the Trustee. The Trustee requires Manty & Associates to: (a) attend hearings; (b) prepare proposed disclosure statement and plan of reorganization; (c) deal with any and all sale issues; (d) bring motions to extend and assume or reject leases; (e) negotiate with taxing authorities on debt; (f) deal with employment issues; (g) pursue possible preference actions; (h) pursue possible fraudulent transfer actions; and (i) draft and file any necessary motions objecting to claims or turnover, as well as any other issue that may arise in the case. Manty & Associates will be paid at these hourly rates: Attorneys $150-$550 Paralegal $160-$195 Manty & Associates will also be reimbursed for reasonable out-of-pocket expenses incurred. Nauni Jo Manty of Manty & Associates, P.A., assured the Court that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtor and its estate. Manty & Associates can be reached at: Nauni Jo Manty, Esq. Jacqueline J. Williams, Esq. MANTY & ASSOCIATES, P.A. 401 Second Avenue North, Suite 400 Minneapolis, MN 55401 Tel: (612) 465-0990 About RPM Automotive RPM Automotive, LLC filed a Chapter 11 petition in the U.S. Bankruptcy Court for the District of Minnesota Minneapolis) on January 29, 2016. The case (Case No. 16-40239) is assigned to Judge Michael E. Ridgway. The Debtor has tapped Yvonne R. Doose, Esq., as its legal counsel. S DIAMOND STEEL: 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 S Diamond Steel, Inc. S Diamond Steel, Inc., based in Phoenix, AZ, filed a Chapter 11 petition (Bankr. D. Ariz. Case No. 16-07846) on July 11, 2016. The petition was signed by Matthew Miles Stevens, president. The Hon. Brenda K. Martin presides over the case. Allan NewDelman, Esq., at Allan D. NewDelman P.C., serves as bankruptcy counsel. The Debtor disclosed $1.59 million in total assets and $5.58 million in total liabilities. S-3 PUMP SERVICE: Taps Cook Yancey and Gaudry Ranson as Counsel --------------------------------------------------------------- S-3 Pump Service, Inc., seeks an order from the U.S. Bankruptcy Court for the Western District of Louisiana authorizing the employment of Sidney E. Cook, Jr., Esq., and the law firm of Cook, Yancey, King & Galloway, and Gregory G. Gremillion, Esq., and the law firm of Gaudry, Ranson, Higgins & Gremillion, L.L.C., as special counsel to assist and represent the Debtor in the state court proceeding styled Sharquana Collins v. Newton Farris, S-3 Pump Service, Inc. and Berkley National Insurance Company, Case No. 589,327, in the First Judicial District Court, Caddo Parish, Louisiana. Messrs. Cook and Gremillion are well qualified to act as special counsel for the Debtor as they have previously represented the Debtor in the State Court Action, the Debtor tells the Court. Messrs. Cook and Gremillion assure the Court that they are disinterested persons, have not represented the Debtor in any other capacity and do not hold or represent any adverse interest to the Debtor or its estate. The Court will commence a hearing on September 27, 2016, at 10:00 a.m., to consider the Application. Mr. Cook can be reached at: Sidney E. Cook, Jr., Esq. COOK, YANCEY, KING & GALLOWAY A PROFESSIONAL LAW CORPORATION 333 Texas Street, Suite 1700 Shreveport, LA 71101 Telephone: (318) 221-6277 Facsimile: (318) 227-7850 E-mail: sidney.cook@cookyancey.com Mr. Gremillion can be reached at: Gregory G. Gremillion, Esq. GAUDRY, RANSON, HIGGINS & GREMILLION, L.L.C. 401 Whitney Avenue, Suite 500 Gretna, LA 70056 Telephone: (504) 362-2466 E-mail: ggremillion@grhg.net About S-3 Pump Service S-3 Pump Service, Inc., provider of high pressure pumping service, filed a Chapter 11 bankruptcy petition (Bankr. W.D. La. Case No. 016-10383) on March 4, 2016. The petition was signed by Malcolm H. Sneed, III, the president. Judge Jeffrey P. Norman is assigned to the case. The Debtor estimated assets and debt in the range of $10 million to $50 million. Blanchard, Walker, O'Quin & Roberts serves as the Debtor's counsel. SALTY DOG REST: Trade Creditors to Receive 75% Under Plan --------------------------------------------------------- Salty Dog Rest., Ltd. filed with the U.S. Bankruptcy Court for the Eastern District of New York a disclosure statement in support of the Debtor's Chapter 11 Plan of Reorganization, dated Sept. 4, 2016. The Plan provides for the Debtor's debts to be discharged, the establishment of a Post-Confirmation Trust into which the Debtor's equity interest holders will deposit the full appraisal value of the Debtor's assets, and the appointment of a Post-Confirmation Trustee to monitor and defend against certain contingent, unliquidated and disputed personal injury claims -- CUD PI Claims -- for which legal actions have been filed against the Debtor. This was necessary because the Debtor's liability insurance carrier, Indemnity Insurance Corporation RRG, had itself been liquidated by a Court appointed Receiver in Delaware in 2014. As a result, in the absence of this Chapter 11 Plan, the Debtor ultimately would be liable to directly pay legal defense costs and any judgment for damages awarded against it which would likely have rendered the Debtor insolvent. Class 4(a), which comprises the Secured Claim of the DOTF in the amount of $30,000, will be paid in full under the Plan. Holders of allowed Class 4(b) General Unsecured Trade Claims, which total $128,000.00, are projected to recoup 75% of the allowed amount of the claim. Holders of allowed Class 4(c) General Unsecured, Contingent, Unliquidated and Disputed PI Litigation Claims -- CUD PI Claims -- which total $7,000,000, are projected to receive 1 cent on the dollar. The Debtor shall transfer the following property to the Post-Confirmation Trust, and distribute the proceeds to Allowed Creditors in accordance with the terms of the Plan: a. Avoidance Actions, and Fraudulent Conveyance Actions, if any, in the Post-Confirmation Trustee's sole discretion, recoveries of which would exceed litigation costs and expenses; b. Cash, in the estimated amount of $71,000, representing 100% of the fair market value of all the Debtor's inventory, furniture, fixtures and equipment (the Equipment), which will be in the form the Contribution by the Debtor's Stockholders. c. The Holder of an Allowed Claim will receive a pro rata share of the available Trust Assets in full settlement of its Claim pursuant to the Bankruptcy Code. d. The costs of administering the Post-Confirmation Trust including the fees and expenses of any professionals retained by the Post-Confirmation Trustee will be paid by the Debtor prior to Confirmation of the Plan and from the Trust Assets before Distributions are made to Allowed Creditors. Therefore, the Plan contemplates Distributions to Holders of Allowed Claims once the amount of those Claims can be determined. The Post-Confirmation Trustee will be responsible for administering and distributing the funds under the Plan. The Debtor eyes approval of the Disclosure Statement in October. A copy of the Disclosure Statement is available at: http://bankrupt.com/misc/nyeb16-40679-0041.pdf About Salty Dog Rest Salty Dog Rest, Ltd., sought protection under Chapter 11 of the Bankruptcy Code (Bankr. E.D.N.Y. Case No. 16-40679) on Feb. 24, 2016. The petition was signed by Robert P. Fadel, president. The case is assigned to Judge Elizabeth S. Stong. On the Petition Date, the Debtor listed $15,000 in assets and $128,000 in liabilities on its Schedules. The Debtor is represented by: RANDALL S. D. JACOBS, PLLC 30 Wall Street, 8th Floor New York, NY 10005 Tel.: (212) 709-8116 Fax: (973) 226-8897 rsdjacobs@chapter11esq.com SARPONG LLC: Case Summary & 7 Unsecured Creditors ------------------------------------------------- Debtor: Sarpong LLC P.O. Box 1374 Bowie, MD 20715 Case No.: 16-22225 Chapter 11 Petition Date: September 12, 2016 Court: United States Bankruptcy Court District of Maryland (Greenbelt) Debtor's Counsel: Jeanette L. Rice, Esq. WALSH, BECKER & RICE 14300 Gallant Fox Lane, Suite 218 Bowie, MD 20715 Tel: (301) 262-6000 Fax: (301) 262-4403 E-mail: riceesq@att.net Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Samspon B. Sarpong, member. A copy of the Debtor's list of seven unsecured creditors is available for free at http://bankrupt.com/misc/mdb16-22225.pdf SFX ENTERTAINMENT: Seeks Probe Over Digital Music Charts -------------------------------------------------------- Tom Corrigan, writing for The Wall Street Journal Pro Bankruptcy, reported that a music label has called for an investigation into SFX Entertainment Inc., alleging that digital music charts overseen by the concert producer were manipulated. According to the report, citing papers filed with the U.S. Bankruptcy Court in Wilmington, Del., Art & Music Recording S.r.l., or AMR, has asked the judge overseeing SFX's chapter 11 case to sign off on a probe of SFX's Beatport online music store. AMR says it wants to find out who, if anyone, is responsible for manipulating a number of tracks it licensed to Beatport's online store and has turned to the bankruptcy court for help, the report related. Investigations under Rule 2004 of the bankruptcy code allow creditors to launch examinations of a company's financial health and past operations, WSJ noted. In 2015, Beatport said it had evidence that several AMR tracks had been "juiced," or artificially bumped up in the charts to appear more popular, WSJ further related. Beatport subsequently removed six AMR tracks, the report said, citing court papers. AMR steadfastly denies that it interfered with the charts and has asked for more information from SFX to help it uncover the culprit, but SFX has refused to provide additional information, the report added, further citing court papers. About SFX Entertainment SFX Entertainment, Inc., and 43 of its affiliates, a global producer of live events and digital entertainment content focused exclusively on the electronic music culture and other world-class festivals, filed Chapter 11 bankruptcy petitions (Bankr. D. Del. Case Nos. 16-10238 to 16-10281) on Feb. 1, 2016. The petitions were signed by Michael Katzenstein as chief restructuring officer. The Debtors disclosed total assets of $662 million and total debt of $490 million. Judge Mary F. Walrath is assigned to the case. Greenberg Traurig, LLP serves as the Debtors' counsel. Kurtzman Carson Consultants LLC acts as the Debtors' claims and noticing agent. The Debtor hired FTI Consulting Inc. to provide crisis and turnaround management services. An Official Committee of Unsecured Creditors has retained Pachulski Stang Ziehl & Jones LLP as counsel, and Conway Mackenzie, Inc., as financial advisor. SHRI GURUKRUPA: Employs Tate M. Russack and RLC PA as Counsel ------------------------------------------------------------- Shri Gurukrupa LLC seeks authority from the U.S. Bankruptcy Court for the District of Maryland to employ Tate M. Russack, Esq., and RLC, P.A., Lawyers & Consultants, as counsel for the Debtor. The professional services of the Counsel include: a. Legal advice in the continued possession and management of its property; b. Preparation of the Statement of Financial Affairs, Schedules, Statement of Executory Contracts and other statements and schedules required by the Bankruptcy Code, Bankruptcy Rules, and/or Local Bankruptcy Rules; c. Representation of the Debtor, as Debtor-in-Possession, in connection with any proceedings for relief from stay which may be instituted in this Court; d. Representation of the Debtor, as Debtor-in-Possession, at any meetings of creditors convened pursuant to Section 341 of the Bankruptcy Code; e. Representation of the Debtor, as Debtor-in-Possession, of all necessary applications, motions, answers, orders, reports, and other legal papers and advice, and assistance to and representation of the Debtor in preparing, filing, and prosecuting a disclosure statement and plan under Chapter 11; f. Representation of the Debtor in collateral litigation before the Bankruptcy Court and other courts; and g. Such other legal services for the Debtor, which may be necessary, and to generally represent, advise, and assist the Debtor, as Debtor-in-Possession, in carrying out their duties under the Bankruptcy Code. The Debtor wishes to employ the Counsel under a general retainer agreement with fees based on their normal hourly rates: a. Senior attorney: $450 per hour b. Attorney: $350 per hour c. Paralegal: $170 per hour d. Secretary/receptionist: no charge. Prior to the filing of the bankruptcy case, the Counsel received from the Debtor $7,409 for preliminary legal work to settle with the creditors prior to filing and then to prepare the Debtors filings in the Chapter 11 case and holds a trust balance of $1,590. Tate M. Russack, Esq., an attorney at RLC, assures the Court that the Firm and its members and associates do hold or represent any interest adverse to the bankruptcy estate with respect to the matters for which they are engaged. The Firm can be reached at: Tate M. Russack, Esq. RLC, P.A., LAWYERS AND CONSULTANTS 7999 N. Federal Hwy., Suite 100A Boca Raton, FL 33487 Telephone: (561) 571-9610 Facsimile: (800) 883-5692 E-mail: tate@russack.net About Shri Gurukrupa Shri Gurukrupa, LLC filed Chapter 11 bankruptcy petition (Bankr. D. Md. Case No. 16-21645) on August 30, 2016. The petition was signed by Biten K Bhavsar, managing member. The case is assigned to the Hon. James F. Schneider. Tate Russack, Esq., at RLC Lawyers & Consultants serves as the Debtors' counsel. Shri Gurukrupa estimated its assets in the range of $0 to $50,000, and liabilities in the range of $1 million to $10 million. SHRI GURUKRUPA: Hires Arun Chawla as Certified Public Accountants ----------------------------------------------------------------- Shri Gurukrupa LLC asks for permission from the U.S. Bankruptcy Court for the District of Maryland to employ Arun Chawla, C.P.A., of Chawla & Chawla, P.C., Certified Public Accountants, an accounting firm, as accountant for the Debtor. The employment of an accountant is necessary for the efficient administration of the case and to comply with Federal and state tax laws, the Debtor states. Specifically, the Debtor says, it is necessary for it to determine its income/loss, prepare and file necessary tax returns and comply with the U.S. Trustee reporting requirements. Accordingly, the Debtor requires the services of an accountant to prepare estate tax returns in order to satisfy the estate's obligations as to such tax returns as well as the Debtor's obligations to the U.S. Trustee's office and other requirements of the Debtor under the Bankruptcy Code. The Accountant provided accounting services to the Debtor's tenant-company in prebankruptcy periods, and the Accountant is owed monies by that tenant-company, the Debtor informs the Court. Arun Chawla, a principal of Chawla & Chawla, assures the Court that the Firm and its associates are disinterested parties within the meaning of Section 101(14) of the Bankruptcy Code. The Firm can be reached at: Chawla & Chawla, P.C. 438 N Frederick Ave., Suite 400 Gaithersburg, MD 20877 Telephone: (301) 977-2481 Facsimile: (301) 216-2727 Web site: http://chawlaandchawlacpa.com/ About Shri Gurukrupa Shri Gurukrupa, LLC filed Chapter 11 bankruptcy petition (Bankr. D. Md. Case No. 16-21645) on August 30, 2016. The petition was signed by Biten K Bhavsar, managing member. The case is assigned to the Hon. James F. Schneider. Tate Russack, Esq., at RLC Lawyers & Consultants serves as the Debtors' counsel. Shri Gurukrupa estimated its assets in the range of $0 to $50,000, and liabilities in the range of $1 million to $10 million. SMARTMALLOW FARMS: 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 Smartmallow Farms, LLC. Smartmallow Farms, LLC filed a Chapter 11 bankruptcy petition (Bankr. S.D. AL. Case No. 16-02735) on August 12, 2016. Irvin Grodsky, P.C. represents the Debtor as counsel. In its petition, the Debtor estimated $1 million to $10 million in both assets and liabilities. The petition was signed by Timothy Hogan, managing member. SON CORP: Selling Pacoima Property to G&M Gapco for $3M ------------------------------------------------------- Son Corp., asks the U.S. Bankruptcy Court for the Central District of California to authorize the sale of commercial real property located at 10685 Laurel Canyon Boulevard in Pacoima, California and related personal property used to operate the gas station and the convenience store business, outside the ordinary course of business to G&M Gapco, LLC for $3,000,000, subject to overbid. A hearing on the Motion is set for Oct. 20, 2016 at 9:30 a.m. The Debtor and G&M Gapco entered into Asset Purchase and Sale Agreement and Joint Escrow Instructions dated June 29, 2016. The salient terms of the Purchase and Sale Agreement are: a. Purchase Price: $3,000,000 b. Purchased Asset: Commercial real property located at 10685 Laurel Canyon Boulevard, Pacoima, California, and related personal property used to operate the gas station and the convenience store business. c. Deposit: $200,000 d. Terms: "as is" e. Closing: 10 days after the Court Order The fair market value of the Laurel Canyon Boulevard Property was $900,000 as of Dec. 24, 2014, which valuation is based on the Appraisal report, dated Dec. 24, 2014, prepared by Voltz Commercial Realty Advisors, Inc. The fair market value of the Personal Property was $155,193 as of the Petition Date. BBCN Bank holds a first and second priority deed of trust liens against the Laurel Canyon Boulevard Property and a blanket security interest in that certain personal property in the aggregated amount of $1,100,557 as of the Petition Date. The primary purpose for the Debtor's bankruptcy filing was to afford an opportunity to restructure its debts. By the Motion, the Debtor seeks authorization to sell the Laurel Canyon Boulevard Property and Personal Property ("Property") to pay any undisputed liens and costs of sale, including escrow fees and closing costs, out of the sale proceeds and through escrow. The proposed sale will enable the Debtor to satisfy all claims against the Property and utilize the remaining sale proceeds to fund its plan of reorganization, and therefore has a sound business justification. The Debtor requests that the Court make a finding that G&M Gapco is a good faith purchaser of the Property. The protection under 11 U.S.C. Section 363(m) is appropriate in the instant case because the proposed sale transaction is proposed sale transaction is the product of arm's length, good faith negotiations between Sam Hejran, the licensed salesperson at the real estate brokerage company, La Mega Realty, Inc., employed by the Debtor, on the one hand, and G&M Gapco on the other. G&M Gapco is not an insider of the Debtor. The Debtor requests that the Court waive the 14 day stay imposed by FRBP 6004(h). The parties wish to complete the sale as quickly as possible in order to facilitate prompt payment of the allowed claims of the Debtor's plan of reorganization; therefore, the Debtor requests permission to proceed with sale immediately. Moreover, it is not anticipated that any creditor or party in interest will object to the proposed sale. The Purchaser can be reached at: Jennifer Talbert Vice President G&M GAPCO, LLC 16868 A Lane Huntington Beach, CA 92647 Telephone: (714) 475-6324 E-mail: jltalbert@gmoc.com Counsel for Debtor: Raymond H. Aver, Esq. LAW OFFICES OF RAYMOND H. AVER 10801 National Boulevard, Suite 100 Los Angeles, CA 90064 Telephone: (310) 571-3511 E-mail: ray@averlaw.com About Son Son Corp. sought Chapter 11 protection (Bankr. C.D. Cal. Case No. 14-11061) on February 28, 2014. Judge Maureen Tighe presides over the case. The Debtor estimated assets and liabilities in the range of $1 million to $10 million. The Debtor tapped Raymond H. Aver, Esq. at Law Offices of Raymond H. Aver APC as counsel. The petition was signed by Orlando Armaswalker, secretary/treasurer. SPX CORP: Egan-Jones Upgrades Sr. Unsecured Debt Ratings to BB -------------------------------------------------------------- Egan-Jones Ratings Company downgraded the senior unsecured ratings on debt issued by SPX Corp. to BB from BB+ on Aug. 22, 2016. SPX Corporation is a diversified, global supplier of infrastructure equipment with scalable growth platforms in heating, ventilation and air conditioning, and detection and measurement markets, and a strong presence in power and energy markets. SQUIRE COURT: Case Summary & 20 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: Squire Court Partners Limited Partnership dba Squire Court Apartments dba Cedar Ridge West Apartments dba Stone Ridge Apartments 9421 Haven Avenue Rancho Cucamonga, CA 91730 Case No.: 16-14816 Nature of Business: Single Asset Real Estate Chapter 11 Petition Date: September 12, 2016 Court: United States Bankruptcy Court Eastern District of Arkansas (Little Rock) Judge: Hon. Richard D. Taylor Debtor's Local Counsel: James F. Dowden, Esq. JAMES F. DOWDEN, P.A. 212 Center Street, 10th Floor Little Rock, AR 72201 Tel: (501) 324-4700 Fax: (501) 374-5463 E-mail: jfdowden@swbell.net Debtor's Lead Counsel: E. P. Keiffer, Esq. Coats Rose, P.C., 325 North St. Paul Street, Suite 4150, Dallas, TX 75201 Tel: (214) 65 1-6517 Fax: (214) 481-2817 - facsimile E-mail: pkeiffer@coatsrose.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Philip Nelson Lee, secretary/general counsel/director. A copy of the Debtor's list of 20 largest unsecured creditors is available for free at http://bankrupt.com/misc/areb16-14816.pdf STEMCELLS INC: Winding Down Operations, May File for Bankruptcy --------------------------------------------------------------- Stemcells, Inc., filed its quarterly report on Form 10-Q, disclosing a net income of $2.51 million on $29,311 of revenue for the three months ended June 30, 2016, compared with a net loss of $3.69 million on $8.46 million of revenue for the same period in 2015. The Company's balance sheet at June 30, 2016, showed $6.32 million in total assets, $11.21 million in total liabilities, and a stockholders' deficit of $4.89 million. In May 2016, Stemcells decided to terminate its Phase II Pathway Study in spinal cord injury following an in-depth review of data from the study and after obtaining the concurrence of the study's Interim Analysis Data Monitoring Committee. While the results showed overall improvement in patients treated with its proprietary cells, the magnitude of the effect and the perceived trend of the effect over time did not justify continuing the study or exploring the variability in the initial patient observations, given the financial resources available to them. Following this, in May 2016, Stemcells' Board of Directors approved a plan to wind down its current operations, having considered the decision to terminate the Pathway Study, Stemcells' available strategic alternatives and its current cash position. The Company is evaluating opportunities to monetize its intellectual property, including data collected in its studies and trade secrets, as well as the transfer of its proprietary HuCNS-SC cells and other assets through a potential sale. Stemcell will not proceed with its earlier plans to conduct a rights offering, for which it had filed a registration statement with the SEC. As part of the wind down of its operations, the Company conducted a reduction of its work force impacting all of the Company's remaining full-time employees, consisting of approximately 50 employees and exited its facilities, as of August 1, 2016. Effective May 31, 2016, the Company recorded all expenses committed to the wind-down of its operations as wind-down expense. The Company recorded approximately $3,803,000 in wind-down expenses for the quarter ended June 30, 2016. The Company has incurred significant operating losses since inception and have an accumulated deficit of $463,732,581 through June 30, 2016. As of June 30, 2016, the Company had cash and cash equivalents of approximately $2,449,000. The Company expects to incur additional operating losses over the foreseeable future. As of the date of this report, Stemcell have a few employees and insufficient funds to cover future company operations. The Company have a very limited liquidity and capital resources and must obtain additional capital and other resources through additional financing or business transactions with potential to provide funds required to restart and continue operations. There are no assurances that these transactions will be realized in whole or in part. These issues, raise substantial doubt about the ability of the Company to continue as a going concern. If the Company exhaust its cash reserves and is unable to obtain adequate financing, it may be unable to meet its operating obligations and may be required to initiate bankruptcy proceedings. A copy of the Form 10-Q is available at: https://is.gd/1w6w7u Based in Newark, Calif., StemCells, Inc., is engaged in the research, development and commercialization of stem cell therapeutics. The Company is focused on developing and commercializing stem and progenitor cells as the basis for therapeutics and therapies. Its lead product development program is its central nervous system (CNS) program, in which it is developing applications for HuCNS-SC cells, its human neural platform technology. It is in clinical development with its HuCNS-SC cells for a range of diseases and disorders of the central nervous system, which consists of the brain, spinal cord and eye. STEREO ONE: U.S. Trustee Objects to Plan, Disclosure Statement -------------------------------------------------------------- Samuel K. Crocker, United States Trustee for Region 8, objects to the Small Business Disclosure Statement and Plan filed by Stereo One, Inc., complaining that: * While the Debtor has provided language in the Plan at paragraph 3.4 regarding the payment of 28 U.S.C. Section 1930(a)(6) U.S. Trustee Quarterly Fees, the Plan should provide that the reorganized Debtor will file with the Court and serve on the U.S. Trustee a financial report for each Quarter (or portion thereof), that the case remains open, in a format prescribed by the U.S. Trustee and provided to the Debtor by the U.S. Trustee. * The Plan does not address in Section 4.01 - Priority Claims the priority proofs of claim filed by the Tennessee Department of Revenue (Claims # 8-1 and # 9-1). * The Plan purports in Class 7 to include holders of unsecured claims of less than $10,000 as a convenience class per Section 1122(b) allowing for a cash payment of 15% of the allowed claim as payment in full. It provides no further discussion of the timing or manner in which the claims are to be paid. How claims are to be paid should be clearly addressed in the Plan. * Section 4.01 Class 8 - General Unsecured Creditors states that unsecured debt will be converted to equity and paid a "priority amount from quarterly fees until paid in full," without further explanation of the terms or manner in which the claims will be satisfied. Article VIII provides for amendment of the corporate charter "to include a special class of stock for the Class 8 Unsecured creditors." But it is not at all explained how this satisfies the claims, nor how this would result in in a 100% distribution to unsecureds as stated in the Liquidation Analysis. About Stereo One Stereo One Inc. sought protection under Chapter 11 of the Bankruptcy Code (Bankr. W. D. Tenn. Case No. 15-29530) on October 7, 2015. The petition was signed by Kourosh (David) Zarshenas, president. The case is assigned to Judge Paulette J. Delk. At the time of the filing, the Debtor estimated its assets at $100,000 to $500,000 and debts at $1 million to $10 million. * * * The U.S. Bankruptcy Court for the Western District of Tennessee will consider approval of the Chapter 11 plan of Stereo One Inc. at a hearing on September 20, 2016 at 11:00 a.m., at Courtroom 630, 200 Jefferson Avenue, Memphis, Tennessee. The court will also consider at the hearing the final approval of Stereo One's disclosure statement, which it conditionally approved on August 3. STERLING ENGINEERING: Plan Filing Deadline Extended Until Nov. 24 ----------------------------------------------------------------- Judge David R. Jones of the U.S. Bankruptcy Court for the Southern District of Texas extended Sterling Engineering Group of Companies, LLC's exclusive period to file a plan of reorganization and solicit approval of the plan until November 24, 2016. The Troubled Company Reporter reported earlier that the Debtor sought an extension of its exclusive period to file a plan of reorganization and solicit approval of the plan by 120 days, contending that any successful plan of reorganization requires a resolution of Suncoast Post-Tension, Ltd.'s claim which constitutes an overwhelming percentage of more than 95% of all financial claims asserted against the Debtor. According to the Debtor, it has reached a conditional settlement with Suncoast in relation to Suncoast's claim which requires both the Court's consent and the execution of a final agreement between Suncoast and the Debtor, as well as the satisfaction of certain additional contingencies. The Debtor is confident that all issues will be resolved and the settlement can be integrated into a consensual reorganization presented to the Court for approval, considering that the Court has already abated an adversary action filed by Suncoast in light of the announcement of the conditional settlement. The only other significant issue related to a final reorganization involves the claim and subsequent adversary action filed by Warwick Construction, Inc. related the Debtor's liability to a construction project located in Fort Bend County, Texas. The Counsel for Warwick was in agreement and this Court indicated that the matter would be tried in October of this year. About Sterling Engineering Group of Companies, L.L.C. Headquartered in San Antonio, Texas, TNP Titan Plaza Fund, LLC, filed for Chapter 11 bankruptcy protection (Bankr. W.D. Tex. Case No. 16-50780) on April 4, 2016, estimating its assets at between $1 million and $10 million and its liabilities at between $1 million and $10 million. The petition was signed by Anthony W. Thompson, CEO of managing member. Judge Craig A. Gargotta presides over the case. Thomas Rice, Esq., at Pulman, Cappuccio, Pullen, Benson & Jones, LLP, serves as the Debtor's counsel. SUNEDISON INC: Cobalt Partners Securities Suit Sent to S.D.N.Y. --------------------------------------------------------------- In the case captioned COBALT PARTNERS, LP, COBALT PARTNERS II, LP, COBALT OFFSHORE MASTER FUND, LP AND COBALT KC PARTNERS, LP, Plaintiffs, v. SUNEDISON, INC., AHMAD CHATILA, BRIAN WUEBBELS, MARTIN TRUONG, ALEJANDRO HERNANDEZ, EMMANUEL HERNANDEZ, ANTONIO R. ALVAREZ, PETER BLACKMORE, CLAYTON DALEY JR., GEORGANNE PROCTOR, STEVEN TESORIERE, JAMES B. WILLIAMS, RANDY H. ZWIRN, GOLDMAN, SACHS & CO., J.P. MORGAN SECURITIES LLC, MORGAN STANLEY & CO. LLC, MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED, DEUTSCHE BANK SECURITIES INC., MACQUARIE CAPITAL (USA), INC., MCS CAPITAL MARKETS LLC and DOES 1-25, inclusive, Defendants. AND RELATED CASES, No. C 16-02263 WHA, Case No. 3:16-cv-02264-WHA., 3:16-cv-02265-WHA, 3:16-cv-02268-WHA (N.D. Cal.), Judge William Alsup of the United States District Court for the Northern District of California denied the plaintiffs' motion for remand and granted the defendants' motion for transfer to the United States District Court for the Southern District of New York for referral to bankruptcy court. Four related actions were brought by purchasers of securities issued by the defendant SunEdison, Inc. and its partially-owned affiliate Terraform Global, Inc. (Global). The nub of all four lawsuits is that defendants violated various securities laws by failing to disclose information related to SunEdison's debts and weakened liquidity. The actions were originally filed in San Mateo County Superior Court on March 28, March 29, March 30, and April 4, 2016. On April 26, 2016, SunEdison filed a voluntary petition for relief under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the Southern District of New York, In re SunEdison, Inc., et al., Case No. 16-10992 (Bankr. S.D.N.Y.). All proceedings against SunEdison are thus stayed pursuant to 11 U.S.C. 362(a). The defendants subsequently removed all of the actions pursuant to 28 U.S.C. 1452(a) as proceedings "related to" SunEdison's bankruptcy case. The plaintiffs in all four actions moved to remand the actions to state court. In addition, the defendants in all four actions moved to transfer the action to the United States District Court for the Southern District of New York for referral to the bankruptcy court in that district, or at least for more convenient coordination. The plaintiffs made three main arguments in support of their motions to remand. First, the plaintiffs argued that removal was not proper because these actions are not "related to" the SunEdison bankruptcy action. Second, the plaintiffs asserted that Section 22(a) of the Securities Act of 1933 bars removal of the complaints. Third, the plaintiffs argued that equitable factors warrant remand under Section 1452(b). Judge Alsup concluded that the indemnification rights of the individual and underwriter defendants render the actions "related to" the SunEdison's bankruptcy action. The judge also concluded that Section 22(a) does not bar removal of actions "related to" a bankruptcy action under Section 1452(a), but certified this issue for interlocutory review under 28 U.S.C. 1292(b). Finally, Judge Alsup found that equitable factors, the interest of justice and the convenience of the parties do not favor remand, but warrant transfer instead. "First, the proximity of the New York district court to the bankruptcy court will enable it to more efficiently adjudicate the claims. Second, plaintiffs' choice of forum is undercut by the apparently undisputed fact that plaintiffs do not reside in California. Finally, the complaints do not allege any California claims," the judge explained. A full-text copy of Judge Alsup's August 26, 2016 order is available at https://is.gd/io1BUu from Leagle.com. Cobalt Partners, LP., Cobalt Partners II, LP, Cobalt Offshore Master Fund, LP, Cobalt KC Partners, LP are represented by: Darren Jay Robbins, Esq. James Ian Jaconette, Esq. Jennifer N. Caringal, Esq. Scott H. Saham, Esq. Susan Goss Taylor, Esq. ROBBINS GELLER RUDMAN & DOWD LLP 655 West Broadway, Suite 1900 San Diego, CA 92101 Tel: (619)231-1058 Fax: (619)231-7423 Email: darrenr@rgrdlaw.com jamesj@rgrdlaw.com jcaringal@rgrdlaw.com scotts@rgrdlaw.com susant@rgrdlaw.com -- and -- David William Hall, Esq. Dennis J. Herman, Esq. ROBBINS GELLER RUDMAN & DOWD LLP Post Montgomery Center One Montgomery Street, Suite 1800 San Francisco, CA 94104 Tel: (415)288-4545 Fax: (415)288-4534 Email: dhall@rgrdlaw.com dennish@rgrdlaw.com SunEdison, Inc., Ahmad Chatila, Brian Wuebbels, Martin Truong, Emmanuel T. Hernandez, Antonio R. Alvarez, Clayton Daley, Jr., Georganne Proctor, Steven Tseoriere, James B. Williams, Randy H. Zwirn are represented by: Sara B. Brody, Esq. Jaime Allyson Bartlett, Esq. Sarah Alison Hemmendinger, Esq. SIDLEY AUSTIN LLP 555 California Street, Suite 2000 San Francisco, CA 94104 Tel: (415)772-1200 Fax: (415)772-7400 Email: sbrody@sidley.com jbartlett@sidley.com shemmendinger@sidley.com -- and -- Norman J. Blears, Esq. SIDLEY AUSTIN LLP 1001 Page Mill Road, Building 1 Palo Alto, CA 94304 Tel: (650)565-7000 Fax: (650)565-7100 Email: nblears@sidley.com -- and -- Robin Eve Wechkin, Esq. SIDLEY AUSTIN LLP Email: rwechkin@sidley.com Peter Blackmore is represented by: Jie Li, Esq. Michael G. Bongiorno, Esq. WILMER CUTLER PICKERING HALE AND DORR 7 World Trade Center 250 Greenwich Street New York, NY 10007 Tel: (212)230-8800 Fax: (212)230-8888 Email: michael.bongiorno@wilmerhale.com -- and -- Rachel Lee Gargiulo, Esq. Timothy J. Perla, Esq. WILMER CUTLER PICKERING HALE AND DORR 60 State Street Boston, MA 02109 Tel: (617)526-6000 Fax: (617)526-5000 Email: rachel.gargiulo@wilmerhale.com timothy.perla@wilmerhale.com Goldman, Sachs & Co., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated, Deutsche Bank Securities Inc., Macquarie Capital (USA) Inc., MCS Capital Markets LLC are represented by: Patrick David Robbins, Esq. Jonah Platt Ross, Esq. SHEARMAN AND STERLING LLP 535 Mission Street, 25th Floor San Francisco, CA 94105-2997 Tel: (415)616-1100 Email: probbins@shearman.com jonah.ross@shearman.com -- and -- Adam S. Hakki, Esq. Daniel Craig Lewis, Esq. SHEARMAN AND STERLING LLP 599 Lexington Avenue New York, NY 10022-6069 Tel: (212)848-4000 Email: ahakki@shearman.com daniel.lewis@shearman.com Alejandro Hernandez is represented by: Daniel H. Bookin, Esq. O'MELVENY & MYERS LLP Two Embarcadero Center, 28th Floor San Francisco, CA 94111 Tel: (415)984-8700 Email: dbookin@omm.com -- and -- Jaime Allyson Bartlett, Esq. SIDLEY AUSTIN LLP 555 California Street, Suite 2000 San Francisco, CA 94104 Tel: (415)772-1200 Fax: (415)772-7400 Email: jbartlett@sidley.com About SunEdison, Inc. SunEdison, Inc. (OTC PINK: SUNEQ), is a developer and seller of photovoltaic energy solutions, an owner and operator of clean power generation assets, and a global leader in the development, manufacture and sale of silicon wafers to the semiconductor industry. On April 21, 2016, SunEdison, Inc., and 25 of its affiliates each filed a Chapter 11 bankruptcy petition (Bankr. S.D.N.Y. Case Nos. 16-10991 to 16-11017). Martin H. Truong signed the petitions as senior vice president, general counsel and secretary. The Debtors disclosed total assets of $20.71 billion and total debts of $16.14 billion as of Sept. 30, 2015. The Debtors have hired Skadden, Arps, Slate, Meagher & Flom LLP as counsel, Togut, Segal & Segal LLP as conflicts counsel, Rothschild Inc. as investment banker and financial advisor, McKinsey Recovery & Transformation Services U.S., LLC, as restructuring advisors and Prime Clerk LLC as claims and noticing agent. The Debtors employed PricewaterhouseCoopers LLP as financial advisors; and KPMG LLP as their auditor and tax consultant. An official committee of unsecured creditors has been appointed in the case. The committee tapped Weil, Gotshal & Manges LLP as its general bankruptcy counsel and Morrison & Foerster LLP as special counsel. SYDELL INC: Hires GGG Partners as Financial Consultants ------------------------------------------------------- Sydell, Inc. dba Spa Sydell seeks authorization from the U.S. Bankruptcy Court for the Northern District of Georgia to employ GGG Partners, LLC as financial consultants. The Debtor requires GGG Partners to: (a) work with the Debtor to provide initial materials to commence this Case; (b) work with the Debtor to provide reporting to the Debtor; (c) put together a package of materials for potential buyers; (d) communicate with potential buyers and other stakeholders; (e) work with the Debtor and counsel to evaluate options; (f) work with the Debtor and counsel to seek approval of a sale; and (g) act generally as the Debtor's ﬁnancial and sales advisor. GGG Partners will be paid at these hourly rates: Managing Partner $350 Partner $325 GGG Partners will also be reimbursed for reasonable out-of-pocket expenses incurred. Prior to the commencement of the Case, the Debtor paid GGG Partners an advance retainer of $6,000, from which invoices for fees and expenses will be deducted. Katie S. Goodman, managing partner of GGG Partners, assured the Court that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtor and its estate. GGG Partners can be reached at: Katie S. Goodman GGG PARTNERS, LLC 3155 Roswell Rd NE, Suite 120 Atlanta, GA 30305 Tel: (404) 256-0003 ext. 225 E-mail: kgoodman@gggpartners.com About Sydell, Inc. d/b/a Spa Sydell Sydell Inc. d/b/a Spa Sydell filed a chapter 11 petition (Bankr. N.D. Ga. Case No. 09-83407) on September 3, 2009. The petition was signed by Reina Bermudez, authorized individual. The Debtor is represented by David G. Bisbee, Esq., at the Law Office of David G. Bisbee. The Debtor estimated assets and liabilities at $1,000,001 to $10,000,000 at the time of the filing.t McKool Smith P.C. TALBOT ENTERPRISES: Needs Additional 31 Days to Complete Plan ------------------------------------------------------------- Talbot Enterprises of Pine Bluff, Inc. asks the U.S. Bankruptcy Court for the Eastern District of Arkansas to allow the Debtor an additional 31 days to file its Chapter 11 Plan and Disclosure Statement. Pursuant to the Court's Order, the Debtor is required to file a Chapter 11 Plan and Disclosure Statement by September 6, 2016, however the Debtor still needs an extension of time to complete the requisite plan and statement. About Talbot Enterprises of Pine Bluff, Inc. Headquartered in White Hall, Arizona, Talbot Enterprises of Pine Bluff, Inc., dba White Hall Store It All, filed a chapter 11 petition (Bankr. E.D. Ark. Case No. 15-11195) on March 13, 2015. The petition was signed by Beau Talbot, president. The case is assigned to Judge Richard D. Taylor. The Debtor is represented by J. Brad Moore, Esq., at Frederick S. Wetzel, III, P.A. The Debtor estimated assets and liabilities at $1 million to $10 million at the time of the filing. TEXARKANA ARKANSAS: Hires Joyce Lindauer as Bankruptcy Counsel -------------------------------------------------------------- Texarkana Arkansas Hospitality, LLC, seeks authority from the U.S. Bankruptcy Court for the Eastern District of Arkansas to employ Joyce W. Lindauer Attorney, PLLC, as counsel. In order to effectuate a reorganization, propose a Plan of Reorganization, and effectively move forward in its bankruptcy proceeding, the Debtor asserts that it needs to hire the Firm as counsel in this matter. Joyce W. Lindauer, Esq., will be the lead counsel for the Debtor. The Debtor discloses that Ms. Lindauer has been paid a retainer of $11,717, which included the filing fee of $1,717 in connection with the bankruptcy proceeding. The primary attorneys and paralegal within the Firm who will represent the Debtor and their hourly rates are: Joyce W. Lindauer $350 Sarah Cox, Associate $195 Jamie Kirk, Associate $195 Dian Gwinnup, Paralegal $105 The Debtor has agreed to reimburse Counsel for all reasonable out-of-pocket expenses incurred on Debtor's behalf. Ms. Lindauer, the owner of the Firm, assures the Court that she and each member of the Firm is presently a disinterested person as defined in Section 101(14) of the Bankruptcy Code. The Firm can be reached at: Joyce W. Lindauer, Esq. Sarah Cox, Esq. Jamie Kirk, Esq. JOYCE W. LINDAUER ATTORNEY, PLLC 12720 Hillcrest Road, Suite 625 Dallas, TX 75230 Telephone: (972) 503-4033 Facsimile: (972) 503-4034 E-mail: Sarah@joycelindauer.com Jamie@joycelindauer.com About Texarkana Arkansas Texarkana Arkansas Hospitality, LLC, doing business as Comfort Suites, filed Chapter 11 bankruptcy petition (Bankr. E.D. Ark. Case No. 16-14556) on August 30, 2016. Sukhpal Singh, member, signed the petition. Joyce W. Lindauer, Esq., at Joyce W. Lindauer Attorney, PLLC, serves as the Debtors' counsel. The Company estimated both assets and liabilities in the range of $1 million to $10 million. TIMOTHY BINKLEY: Secured Creditors to Be Paid in 3 Years Under Plan ------------------------------------------------------------------- Timothy D. Binkley and Penny Lewis Binkley filed a first amended and restated disclosure statement dated Sept. 6, 2016, a full-text copy of which is available at http://bankrupt.com/misc/14-11052-143.pdf Under the First Amended Disclosure Statement, the Allowed Claim of Pinnacle Bank, estimated at $23,702, will be amortized over a three-year period with interest at the rate of 5.50% per annum and monthly payments of principal and interest of $516.42. On or before the Effective Date, the Debtor will execute and deliver to Pinnacle Bank a promissory note. The principal amount of the note will be equal to the Allowed Secured Claim of Pinnacle Bank, as reduced by the postpetition adequate protection payments. Pinnacle Bank will retain its lien on the 2010 Ford F-150 truck after the Confirmation Date. The Allowed Claim of Sheffield Finance will be amortized over a three-year period with interest at the rate of 3.5% per annum and monthly payments of principal and interest of $124.66. On or before the Effective Date, the Debtor will execute to Sheffield Finance a promissory note. The principal amount of the note will be equal to the Allowed Claim of Sheffield Finance. Sheffield Finance will retain its lien on the Dixon riding lawnmower after the Confirmation Date. Members of Class 3 consisting of the general unsecured claim of Philip and Sarah Rainey, shall be disallowed and paid nothing under the terms of the Plan. About The Binkleys Timothy D. Binkley and Penny Lewis Binkley sought protection under Chapter 11 of the Bankruptcy Code (Bankr. M.D. Tenn. Case No. 15-04144) on June 17, 2015. The case is assigned to Judge Randal S. Mashburn. The Debtors are represented by Joseph P. Rusnak, Esq., at Tune, Entrekin & White, P.C., in Nashville, Tennessee. TRIN POLYMERS: Has Final Authority to Use Cash Collateral --------------------------------------------------------- Judge John T. Gregg of the U.S. Bankruptcy Court for the Western District of Michigan authorized Trin Polymers LLC to use Cash Collateral on a final basis. The Debtor was authorized to use Cash Collateral in the ordinary course of business for working capital and general operating purposes, and for the payment of Professional Fees and other fees and expenses, subject to the extent of the Carve Out. The Prepetition Lenders were granted additional and replacement continuing valid, binding, enforceable, non-avoidable, and automatically perfected postpetition security interest in and liens as adequate protection against any diminution in value on their Collateral. A full-text copy of the Final Cash Collateral Order, dated September 1, 2016, is available at https://is.gd/d0fQDO About Trin Polymers, LLC Trin Polymers LLC, sought protection under Chapter 11 (Bankr. W.D. Mich. Case No. 16-16-03615) on July 11, 2016. The petition was signed by Mike B. Mike III, managing member. The Debtor is represented by Robert F. Wardrop, II, Esq., at Wardrop & Wardrop, P.C. The case is assigned to Judge John T. Gregg. The Debtor estimated assets and liabilities of less than $10 million. TRINITY RIVER: Court OKs Cash Collateral Use Until September 30 --------------------------------------------------------------- Judge Tony M. Davis of the U.S. Bankruptcy Court for the Western District of Texas authorized Trinity River Resources, LP, to use cash collateral on an interim basis, until September 30, 2016, pursuant to the stipulation executed by the Debtor and GE Capital EFS Financing, Inc. The Debtor and GE Capital previously agreed to extend the Debtor's use of cash collateral, which had expired on August 29, 2016. The approved Budget which covers the weeks ending September 2 and September 16, 2016, provides for total disbursements in the amounts of $1,261 and $285, respectively. A further hearing on Cash Collateral use is scheduled on September 26, 2016 at 9:30 a.m. A full-text copy of the Interim Cash Collateral Order, dated September 1, 2016, is available at http://tinyurl.com/zer8fts About Trinity River Resources, LP. Trinity River filed a Chapter 11 bankruptcy petition (Bankr. W.D. Tex. Case No. 16-10472) on April 21, 2016. The petition was signed by Matthew J. Telfer as manager of Trinity River Resources, GP, LLC. The Debtor estimated assets in the range of $50 million to $100 million and liabilities of up to $500 million. The Debtor has hired Chelsea Rose Dal Corso, Esq. and William A. (Trey) Wood III, Esq., at Bracewell LLP as counsel, Bridgepoint Consulting, LLC, as financial advisor, and Scotiabank as investment banker. Judge Tony M. Davis is assigned to the case. TRIPLE C FLATBED: 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 Triple C Flatbed Holdings, LLC. Triple C Flatbed Holdings, LLC sought protection under Chapter 11 of the Bankruptcy Code in the Northern District of Georgia (Atlanta) (Case No. 16-58984) on May 24, 2016. The petition was signed by Terry Comer, managing member. The Debtor disclosed total assets of $2.28 million and total debts of $2.72 million. UNITED MOBILE: Court Allows Cash Use on Final Basis Through Nov. 17 ------------------------------------------------------------------- Judge Barbara Ellis-Monro of the U.S. Bankruptcy Court for the District of Georgia authorized United Mobile Solutions, LLC to use Cash Collateral until November 17, 2016. The Court granted T-Mobile USA, Inc., Metropcs Georgia, LLC, Metropcs Texas, LLC, JP Morgan Chase Bank, NA, NowAccount Network Crop., Curve Commercial Services, LLC, Procurepal, LLC, and PowerUp Lending Group, LLC with Replacement Liens as security against any diminution in value of any prepetition collateral in which they hold a valid, enforceable and perfected security or consignment interest resulting from the imposition of the automatic stay or the Debtor’s use of Cash Collateral. The Court approved a 3-month budget covering the months of September, October, and November, projecting monthly expenses of $595,171, $635,291, and $663,386, respectively. A full-text copy of the Final Cash Collateral Order, dated September 4, 2016, is available at http://tinyurl.com/hqyzl6z About United Mobile United Mobile Solutions, LLC, filed a chapter 11 petition (Bankr. N.D. Ga. Case No. 16-62537) on July 20, 2016. The petition was signed by Kil Won Lee, president. The Debtor is a carrier master dealer that operates and manages approximately 20 retail cellular phone stores. The Debtor's corporate offices are located in Norcross, Georgia. The Debtor is represented by Cameron M. McCord, Esq., at Jones & Walden, LLC. The Debtor estimated its assets at $0 to $50,000 and its liabilities at $1 million to $10 million at the time of the filing. UNREIN & COMPANY: Can File Plan and Disclosure Until Nov. 7 ----------------------------------------------------------- The Hon. Dale L. Somers of the U.S. Bankruptcy Court District of Kansas extended, at the behest of Unrein & Company, Inc. and its affiliated debtors, the Debtors' exclusive period to file a plan up to and including November 7, 2016. The Troubled Company Reporter on Sept. 8, 2016, reported that the Debtors sought for a 2-month extension of their exclusive periods from the Court, contending that they are still making progress on a business deal with a main unsecured creditor Midas. About Unrein & Company Unrein & Company, Inc. and its four affiliates sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D. Kan. Lead Case No. 16-20399) on March 11, 2016. The petition was signed by Eric Unrein, owner and president. The Debtors' counsel is Jeffrey A. Deines, Esq. at Lentz Clark Deines PA. Honorable Dale L. Somers presides over the case. At the time of the filing, Unrein & Company, Inc. estimated its assets and debts at $500,000 to $1 million. VAPOR CORP: Warrant Obligations Raises Going Concern Doubt ---------------------------------------------------------- Vapor Corp. filed its quarterly report on Form 10-Q, disclosing a net loss of $1.19 million on $3.46 million of total sales for the three months ended June 30, 2016, compared with a net loss of $3.02 million on $3.01 million of total sales for the same period in 2015. The Company's balance sheet at June 30, 2016, showed $23.89 million in total assets, $49.55 million in total liabilities, and a stockholders' deficit of $25.66 million. The Company reported a net loss of approximately $17.4 million for the six months ended June 30, 2016, and had negative working capital of approximately $31 million as of June 30, 2016. The Company also expects to continue incurring losses before the impact of changes in fair value of derivatives for the foreseeable future and may need to raise additional capital to satisfy warrant obligations and to continue as a going concern. On May 2, 2016, the OTCBQB staff notified the Company that, based upon its non-compliance with the minimum $0.01 bid price requirement for the prior 30 consecutive business days, the Company – in accordance with the OTCQB Standards – has been provided a grace period, through October 31, 2016, to regain compliance with the minimum bid price requirement. If the Company's common stock bid price does not close at or above $0.01 for a period of ten consecutive trading days by October 31, 2016, the Company will be moved to the OTC Pink marketplace. If a delisting from OTCQB took place, the Company would no longer meet the "Equity Conditions" required to issue Company common stock to fulfill a cashless exercise pursuant to Section 1(d) of its Series A Warrants. If the Company fails to meet certain conditions set forth in the Series A Warrants, the Company may be required to elect to make cash payments to satisfy its obligations pursuant to the Series A Warrants. The Company cannot predict if it will have sufficient cash resources to satisfy its obligations to the holders of Series A Warrants. If all of the warrants were exercised simultaneously at stock price lower than $0.0001, then the Company would not have sufficient authorized common stock to satisfy all the warrant exercises and it may be required to use cash to pay warrant holders. Since the Company cannot predict the future stock price and when the warrant holders will exercise warrants and sell the underlying common shares, management cannot predict if the Company will have sufficient cash resources to satisfy its obligation to the current warrant holders. Accordingly, the Company have concluded that the material uncertainty related to the exercise of the Series A Warrants and the sufficiency of cash reserves to satisfy obligations raises substantial doubt about the Company's ability to continue as a going concern. A copy of the Form 10-Q is available at: https://is.gd/36O3vm Dania Beach, Florida-based Vapor Corp. is a distributor and retailer of vaporizers, e-liquids and electronic cigarettes, operating 19 stores in the U.S. The Company also designs, markets, and distribute vaporizers, e-liquids, electronic cigarettes, and accessories under the Vapor X(R), Hookah Stix(R), Vaporin(TM), and Krave(R) brands. VERSUM MATERIALS: S&P Assigns 'BB' CCR, Outlook Stable ------------------------------------------------------ S&P Global Ratings assigned its 'BB' corporate credit rating to Versum Materials Inc. The outlook is stable. At the same time, based on preliminary terms and conditions, S&P assigned its 'BB+' issue-level and '2' recovery ratings to Versum's proposed $775 million senior secured credit facilities, consisting of a $200 million revolving credit facility and a $575 million term loan B. The '2' recovery rating indicates S&P's expectation of substantial (upper half of the 70% to 90% range) recovery in the event of a payment default. S&P also assigned its 'BB-' issue-level and '5' recovery ratings to the proposed $425 million senior unsecured notes. The '5' recovery rating indicates S&P's expectation for modest (upper half of the 10% to 30% range) recovery in the event of a payment default. "The ratings on Versum reflect our assessments of the company's business risk profile as fair and financial risk profile as significant," said S&P Global Ratings credit analyst Brian Garcia. Versum maintains solid market positions in the niche markets it serves. S&P believes the company should benefit from growth in demand for semiconductors, driven by demand for increased data and smartphone usage. As a result, S&P expects the company's EBITDA to gradually increase over the next one to two years. Given S&P's expectations for modestly improving earnings and prudent debt leverage to fund growth initiatives, S&P expects weighted-average funds from operations (FFO) to debt to remain in the 20% to 30% range. The stable outlook reflects S&P's belief that Versum's EBITDA will gradually increase, driven by growth in its higher-margin materials segment. S&P believes the company should benefit from growth in demand for semiconductors, driven by demand for increased data and smartphone usage. Gradually increasing fiscal 2017 EBITDA should result in modestly improving credit measures, including weighted average FFO to debt between 20% and 30%, pro forma for acquisitions. S&P also expects management to show prudence in funding growth and shareholder rewards. S&P could lower the ratings within the next 12 months if lower-than-expected demand in the semiconductor industry or the loss of a key customer resulted in lower-than-expected EBITDA and credit measures. S&P could also lower the ratings if the company experiences issues in operating as a stand-alone company or if the transition is more costly than currently expected. S&P's downside scenario could result if EBITDA margins were at least 200 basis points (bps) lower than S&P currently projects in its base-case scenario, combined with minimal revenue growth. In this scenario, S&P would expect weighted-average FFO to debt to decline below 20% (pro forma for acquisitions) without near-term prospects for improvement. S&P could also lower the ratings if, against its expectations, cash outlays or financial policy decisions stretch the company's financial profile beyond a level appropriate for the current ratings. Although S&P views an upgrade as unlikely over the next 12 months, it could raise the ratings if growth in the company's materials segment is stronger than S&P currently projects, combined with significantly stronger EBITDA margins than S&P currently projects in its base case scenario. This could result if EBITDA margins are 500 bps higher than S&P's fiscal 2017 projections, combined with double-digit-revenue growth, as a result of greater demand in the semiconductor industry, as well as greater-than-expected cost reductions. In this scenario, S&P would expect weighted-average FFO to debt increasing to above 30% on a sustainable basis, pro forma for acquisitions. This could also result if the company is able to generate significantly more free cash flow than S&P currently expects and uses it for debt reduction, resulting in strengthening credit measures. W&T OFFSHORE: S&P Cuts CCR to 'SD' on Distressed Exchange --------------------------------------------------------- S&P Global Ratings lowered its corporate credit rating on U.S.-based oil and gas exploration and production (E&P) company W&T Offshore Inc. to 'SD' from 'CC'. At the same time, S&P lowered the ratings on the company's 8.5% senior notes due 2019 to 'D' from 'CC'. S&P revised the recovery rating on this debt to '6 from '5', reflecting its expectation of negligible (0% to 10%) recovery to creditors in the event of a payment default. S&P also raised the rating on the 9% second-lien senior notes due 2020 to 'CCC' from 'CC' because they were not involved in the exchange. S&P revised the recovery rating on this debt to '3' from '1', reflecting its expectation of meaningful (50% to 70%, higher end of the range) recovery to creditors in the event of a payment default. "At the same time, we assigned a 'B-' issue-level rating to the company's new 1.5 lien notes due 2019 with a recovery rating of '1', reflecting our expectation of very high (90% to 100%) recovery to creditors in the event of a payment default; a 'CCC' issue-level rating to its new second-lien notes due 2020 with a recovery rating of '3' reflecting our expectation of meaningful (50% to 70%, higher end of the range) recovery to creditors in the event of a payment default; and a 'CC' issue-level rating to its new third-lien notes due 2021 with a recovery rating of '6', reflecting our expectation of negligible (0% to 10%) recovery to creditors in the event of a payment default," S&P said. "The rating action reflects our assessment that W&T Offshore's exchange on its 8.5% senior unsecured notes due 2019 was a distressed exchange based on the holders receiving less than par value, and our view that the company faced a realistic possibility of conventional default prior to the exchange," said S&P Global Ratings credit analyst Kevin Kwok. In May 2016, W&T Offshore Inc. began discussions regarding a potential exchange transaction involving its 8.5% senior unsecured notes due 2019 and its 9% second-lien secured notes due 2020. On Sept. 1, 2016, the company agreed to exchange approximately $710.2 million of the $900 million 8.5% senior unsecured notes for 60.4 million shares of its common stock, $159.8 million in new 9%/10.75% senior second-lien PIK toggle notes due 2020 and $142 million in new 8.5%/10% senior third-lien PIK toggle notes due 2021, which amounts to less than 60% of par based on the closing share price of $1.66. The new notes were issued on Sept. 7, 2016. The original 9% second-lien secured notes were unaffected as no agreement was settled upon during the discussions. At the same time, the company also announced a new $75 million 1.5-lien term loan to repay portions of outstanding borrowings under the credit facility ($148 million as of June 30, 2016) and to pay expenses related to the exchange offer. S&P expects to reassess the corporate credit rating in the next few days, and at this time expect to raise the rating to 'CCC' from 'SD'. S&P also expects to raise the 'D' ratings on the notes involved in the tender because it does not expect any further distressed transactions on those notes. S&P's analysis will incorporate the challenging operating environment for oil and gas companies at current commodity prices and W&T Offshore's new capital structure and S&P's assessment of its liquidity. WALTER ENERGY: Court Approves Sale of Canadian Assets to Conuma --------------------------------------------------------------- Walter Energy Canada Holdings, Inc., on Sept. 9, 2016, disclosed that the court approved sale of its Canadian assets to Conuma Coal Resources Limited ("Conuma"), a member of the ERP Group of Companies, has closed. Conuma intends to resume mining operations at the Brule Mine in the near future and may resume other mining operations in the area in 2017. Walter Energy Canada and certain of its affiliates and partnerships obtained creditor protection under the Companies' Creditors Arrangement Act (Canada) (the "CCAA") pursuant to an Initial Order granted on December 7, 2015. The sale of the Company's assets was approved by order of the Supreme Court of British Columbia, pronounced on August 16, 2016. The sale represents the successful conclusion of the Canadian assets sale of Walter Energy Canada's sale and investment solicitation process, commenced in January of this year. Walter Energy Canada intends to pursue a transaction for its interests in the Walter United Kingdom assets. The Walter United Kingdom entities are not subject to creditor protection. Walter Energy Canada is a holding company for the Canadian and UK operations of Walter Energy, Inc. of Birmingham, Alabama. Walter Energy Canada and Walter United Kingdom were not part of the U.S. chapter 11 filing of Walter Energy, Inc. on July 15, 2015 and were not included in the asset purchase agreement that Walter Energy, Inc. entered into on November 5, 2015. About Walter Energy Walter Energy, Inc. -- http://www.walterenergy.com/-- is a metallurgical coal producer for the global steel industry with strategic access to steel producers in Europe, Asia and South America. The Company also produces thermal coal, anthracite, metallurgical coke and coal bed methane gas, with operations in the United States, Canada and the United Kingdom. For the year ended Dec. 31, 2014, the Company reported a net loss of $471 million following a net loss of $359 million in 2013. Walter Energy and its affiliates sought Chapter 11 protection (Bankr. N.D. Ala. Lead Case No. 15-02741) in Birmingham, Alabama on July 15, 2015, after signing a restructuring support agreement with first-lien lenders. Walter Energy disclosed total assets of $5.2 billion and total debt of $5 billion as of March 31, 2015. The Debtors tapped Paul, Weiss, Rifkind, Wharton & Garrison as counsel; Bradley Arant Boult Cummings LLP, as co-counsel; Ogletree Deakins LLP, as labor and employment counsel; Maynard, Cooper & Gale, P.C., as special counsel; PJT Partners LP serves as investment banker, replacing Blackstone Advisory Services, L.P.; AlixPartners, LLP, as financial advisor, and Kurtzman Carson Consultants LLC, as claims and noticing agent. The Bankruptcy Administrator for the Northern District of Alabama appointed an Official Committee of Unsecured Creditors and an Official Committee of Retirees. The Creditors Committee tapped Morrison & Foerster LLP and Christian & Small LLP as attorneys. The Retiree Committee retained Adams & Reese LLP and Jenner & Block LLP as attorneys. The informal group of certain unaffiliated First Lien Lenders and First Lien Noteholders -- Steering Committee -- retained Akin, Gump, Strauss, Hauer and Feld LLP as legal advisor, and Lazard Freres & Co. LLC as financial advisor. WILLOW CREEK: Court Recommends Striking Herman's Answer ------------------------------------------------------- In the case captioned RANDALL BRUCE BARLOW, Plaintiff, v. DONALD S. HERMAN, et al., Defendants, Case No. 2:13-cv-00033-JAD-CWH (D. Nev.), Judge C.W. Hoffman, Jr., of the United States District Court for the District of Nevada recommended that defendants Donald Herman, Herman Family Trust, Willow Creek at San Martin Assisted Living, LLC, Willow Creek Buffalo Assisted Living, LLC, Willow Creek Buffalo, LLC, Willow Creek Memory Care West, LLC, and Silver Care, LLC's answer and counterclaim be stricken. The case arises out of a dispute regarding an employment contract between Randall Bruce Barlow and the defendants. Barlow filed a complaint alleging claims for breach of contract and breach of the covenant of good faith and fair dealing against the defendants. The defendants filed an answer and counterclaims for declaratory relief, fraud in the inducement, and fraudulent misrepresentation against Barlow. The defendants, however, exhibited an ongoing unwillingness to participate in discovery in good faith, Judge Hoffman pointed out, thus recommending that the defendants' answer and counterclaim be stricken as a sanction for the defendants' refusal to respond to written discovery and to comply with the court's orders. The court further ordered that the stay in the case be lifted to allow Barlow to move for default judgment or take any other action that Barlow deems appropriate in light of the district judge's disposition of the report and recommendation. A full-text copy of Judge Hoffman's August 2, 2016 report and recommendation is available at https://is.gd/aznHbV from Leagle.com. Randall Bruce Barlow is represented by: Michael N. Feder, Esq. DICKINSON WRIGHT PLLC 8363 West Sunset Road, Suite 200 Las Vegas, NV 89113 Tel: (702)550-4400 Fax: (844)670-6009 Email: mfeder@dickinson-wright.com Donald Herman, Herman Family Trust, Willow Creek at San Martin Assisted Living, LLC, Willow Creek San Martin Building, LLC, Willow Creek Buffalo Assisted Living, LLC, Willow Creek Buffalo, LLC, Willow Creek Memory Care West, LLC, Silver Care, LLC are represented by: Andras F. Babero, Esq. Las Vegas, NV 89135 Tel: (702)869-8801 About Willow Creek San Building LLC Willow Creek San Martin Building LLC sought Chapter 11 bankruptcy protection (Bankr. D. Nev. Case No. 14-10041) in Las Vegas, on Jan. 5, 2014. The Debtor, a Single Asset Real Estate as defined in 11 U.S.C. Sec. 101(51B), disclosed $40,674,094 in assets and $32,988,437 in liabilities as of the Chapter 11 filing. The case is assigned to Judge Laurel E. Davis. The Debtor is represented by Ogonna M. Atamoh, Esq., and James D. Boyle, Esq., at Cotton, Driggs, Walch, Holley, Woloson & Thompson, in Las Vegas, Nevada. WOO LI: Plan Has Conditional OK; Oct. 4 Confirmation Hearing Set ---------------------------------------------------------------- U.S. Bankruptcy Court Judge Paul W. Bonapfel entered an order conditionally approving the disclosure statement explaining the Chapter 11 plan of Woo Li, Inc. The Debtor filed a chapter 11 plan and disclosure statement on Aug. 29, 2016. According to the Court's Order, Sept. 27, 2016, is fixed as the last day for filing written acceptances or rejections of the chapter 11 plan. Sept. 27 is also fixed as the last day for filing and serving written objections to the disclosure statement and confirmation of the plan. The Court will hold a hearing on final approval of the disclosure statement and confirmation of the plan on Oct. 4, 2016, at 10:00 a.m., in Courtroom 1401, U.S. Courthouse, 75 Ted Turner Drive, SW, Atlanta, Georgia. About Woo Li, Inc. Woo Li, Inc. filed for Chapter 11 bankruptcy protection (Bankr. N.D. Ga. Case No. 16-58865) on May 21, 2016. The petition was signed by Taeuk Kang, president. Cameron M. McCord, Esq., at Jones & Walden, LLC, represents the Debtor. The Debtor estimated assets of $100,000 to $500,000 and estimated liabilities of $1 million to $10 million. Mathew A. Schuh -- mschuh@kkgpc.com and ccooper@kkgpc.com -- represents creditor Metro City Bank. WTB 5 ENTERPRISES: Hearing on Disclosures Set For Oct. 4 -------------------------------------------------------- The Hon. Daniel P. Collins of the U.S. Bankruptcy Court for the District of Arizona has scheduled for Oct. 4, 2016, at 11:00 a.m. the hearing to consider the approval of the disclosure statement filed by WTB 5 Enterprises, LLC. As reported by the Troubled Company Reporter on Sept. 1, 2016, the Debtor filed its proposed plan to exit Chapter 11 protection. Under the restructuring plan, Class 4 general unsecured creditors will be paid an amount equal to one and one-half (1.5) times the full amount of their claims. The last day for filing objections to the Disclosure Statement is Sept. 27, 2016. Creditors whose claims are not listed or whose claims are listed as disputed, contingent, or unliquidated as to amount and who desire to participate in the case or share in any distribution must file their proof of claim by Oct. 3, 2016, which date is fixed as the last day for filing a proof of claim. About Wtb 5 Enterprises Wtb 5 Enterprises, LLC, sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D. Ariz. Case No. 16-04074) on April 15, 2016. The petition was filed pro se. [*] Oil Bankruptcies Leave Lenders w/ "Catastrophic" Recovery Rate ------------------------------------------------------------------ Rebecca Penty, writing for The Wall Street Journal Pro Bankruptcy, citing Moody's Investors Service reported that U.S. oil bankruptcies haven't been this "catastrophic" for lenders in a long time, in what may be the worst bust of any industry this century. According to the report, citing the credit-rating agency, creditors are recovering an average 21 percent of what they lent, compared with about 59 percent in past decades. The credit-rating agency said in a report that looks into lending to 15 exploration and production companies that filed for bankruptcy protection in 2015, the report related. That may be on par with, or worse than, the telecommunications industry collapse in 2001 and 2002, the report further related, citing the study led by David Keisman. High-yield bonds recovered a mere 6 percent, compared to 30 percent in previous years going back to 1987, the report added. Defaults in the oil and natural gas industry have been rising through a market slump that has exceeded two years as companies lacked the cash to make interest payments on their debt, Bloomberg said. Bankruptcies among U.S. producers so far this year are about twice the number among companies rated by Moody's in all of 2015, the Moody's report added. The oil and gas figures have helped propel U.S. corporate defaults to the highest since 2009, the report said. ********* 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 ***