/raid1/www/Hosts/bankrupt/TCR_Public/161011.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Tuesday, October 11, 2016, Vol. 20, No. 284
Headlines
1422 ST. MARKS: Seeks to Hire Vogel Bach as Legal Counsel
15 JOHN CORP: Seeks to Hire Aronson as Accountant
A QUIVER FULL: Seeks to Hire Macey Wilensky as Legal Counsel
ACCIPITER COMMUNICATIONS: Unsecureds to Get 100% in 8 Mos.
ADAMSVILLE PROPERTIES: Hires Quinn Law as Counsel
AFFINITY HEALTH: Plans Business Model Change, PCO Says
ALLEGHENY BUILDERS: Hires Frobenius Conaway as Accountant
AMERICAN TOOLS: Case Summary & 20 Largest Unsecured Creditors
ASHBURY HILLSIDE: Trustee Selling Purcellville Property for $410K
AVACEND INC: Seeks to Hire Macey Wilensky as Legal Counsel
AVSC HOLDING: S&P Affirms 'B' CCR, Off Watch Negative
AZURE MIDSTREAM: Common Units Delisted from NYSE
BEEBE DIVERSIFIED: U.S. Trustee Forms Three-Member Committee
BELIEVER'S BIBLE: U.S. Trustee Unable to Appoint Committee
BETHEL CATHEDRAL: Employs Coldwell Banker as Real Estate Broker
BIOLIFE SOLUTIONS: Rick Stewart Quits as Director
BIONITROGEN HOLDINGS: Nexus to Provide Eng'g Support Services
BIOSTAGE INC: Provides Update of Cellspan Esophageal Implant
BOOZ ALLEN: Moody's Changes Outlook to Negative & Affirms Ba2 CFR
CALFRAC WELL: S&P Lowers CCR to 'CCC+'; Outlook Negative
CHAMPAGNE SERVICES: Court Denies Application to Employ Counsel
CHIEFTAIN STEEL: Floyd Industries Employs Barber Law as Counsel
CHOICE HEALTH: Taps Donica Law Firm as Legal Ccounsel
CHOUDRIES INC: Hires AC Valuations as Appraiser
CIT BANK: Moody's Puts Ba3 Rating on Review for Possible Upgrade
COOPER INC: Taps Benjamin Wilson as Accountant
CORNERSTONE DENTISTRY: Court Allows Cash Use on Final Basis
CROSSFIRE MANUFACTURING: Plan Confirmation to be Heard on Nov. 16
CYCLE SHACK: Unsecured Creditors to Recoup 10% Under Exit Plan
DAVID JOHN VIDAD: Unsecureds To Be Paid $100,000 in 60 Months
DEER MEADOWS: Wants to Use DCR Mortgage Cash Through Jan. 31
DELCATH SYSTEMS: Empery Asset Reports 5.14% Stake as of Sept. 30
DELTEK INC: Moody's Raises CFR to B2; Outlook Stable
DIAMOND TANK: Says It is Not in Default Under Final Cash Order
DIVERSE ENERGY: Amends Disclosure Statement
DOT HEADQUARTERS: S&P Affirms Then Withdraws BB+ Rating on A-1 Cert
EAST COAST: Bradley D. Sharp Named Ch. 11 Trustee
ELEPHANT TALK: Divests ValidSoft Through A Management Buy Out
FANSTEEL INC: Hires CohnReznick LLP to Provide Valuation
FANSTEEL INC: Hires Donlin Recano as Claims Noticing Agent
FIRED UP: Nov. 9 Auction, Nov. 1 Bid Deadline Set
FIRED UP: Property Auction by TAGeX Approved
FLOORING DIRECT: Taps Scott D. Gibson as Legal Counsel
FORT DEARBORN: Moody's Retains B3 Rating on Increase of Loan
FORTERRA INC: S&P Assigns 'B' CCR & Rates $1BB Term Loan 'B+'
FORTUNATO C. CONDORI: To Pay Unsecured Claims 1% Under Exit Plan
FOUR DIA: Taps Hiersche Hayward as Attorneys
FPMC AUSTIN: Sale of Personal Property for $1.3M Approved
FRONTIER HOTELS: U.S. Trustee Unable to Appoint Committee
FUNCTION(X) INC: Closes $1.3 Million APA with Perk Inc.
GAMALIER GONZALEZ: Unsecureds To $22K, Plus 2% Interest Under Plan
GEI HOLDINGS: Hires Smart Realty as Realtor
GENERAL STEEL: Sold 1.5 Million Shares to Alternative Wealth
GENON ENERGY: Moody's Lowers CFR to Caa3, Outlook Remains Negative
GFD CONSTRUCTION: Hires Akbar Law as Attorney
GINGKO ROSE: Selling Los Angeles Property to MNW for $1.2M
GLOBAL HEALTHCARE: Files Copy of Revised Investor Presentation
GOLFSMITH INTERNATIONAL: Hires Jefferies as Investment Banker
GOLFSMITH INTERNATIONAL: Hires Richards Layton as Co-counsel
GROVE PLAZA PARTNERS: Wants to Continue Using Cash Collateral
GROWER'S ORGANIC: Second Amended Disclosure Statement Filed
GROWER'S ORGANIC: Terms of CapConnect's $1.35M Financing Offer
HAGERSTOWN BLOCK: Seeks to Employ Smith Elliott as Accountants
HANJIN SHIPPING: Battles with Ashley Furniture Over Cargo, Damages
HARTFORD CITY, CT: Moody's Lowers Rating on $550MM GO Debt to Ba2
HEALTHSOUTH CORP: S&P Affirms 'BB-' CCR; Outlook Stable
HEBREW HEALTH CARE: Can Use Cash Collateral Through Dec. 2
HEXION INC: Joseph Bevilaqua Named as COO
ICRCO INC: Hires Beall & Burkhardt as Counsel
ICRCO INC: Hires Brigante Cameron as Accountant
ILLINOIS POWER: Moody's Lowers CFR to Ca, Outlook Negative
IMPLANT SCIENCES: L-3 to Acquire Assets for $117.5 Million
IMX ACQUISITION: Case Summary & 30 Largest Unsecured Creditors
INTELLIPHARMACEUTICS INT'L: AST Appointed as Warrant Agent
IRON BRIDGE TOOLS: Hires Dan Delarosa as Special Patent Counsel
IRON BRIDGE TOOLS: Hires Emil Braca as Special IP Counsel
JAMES ALVIN JOSEPH: Plan Outline Okayed, Nov. 8 Conf. Hrg. Set
JEFF BENFIELD: Taps Expert Horticultural as Appraiser
JEFFREY HOWARD WALSH: Disclosure Statement Hearing on Nov. 29
JOHN Q. HAMMONS: Taps UBS Securities as Financial Advisor
JOYCE LEE: Taps Duffy Realty as Real Estate Agent
JUMIO INC: Bloso Sues Eduardo Saverin Over $5-Mil. Loss
K4M CONSTRUCTION: Secured Claims To Be Paid Upon Sale of Property
KISSNER MILLING: S&P Affirms 'B' CCR; Outlook Stable
KLAMON LLC: Seeks to Hire Wauson Probus as Special Counsel
LAST CALL: Committee Taps Protiviti as Financial Advisor
LBM BORROWER: S&P Assigns 'B+' CCR; Outlook Stable
LEGEND OIL: Extends CEO's Term for Additional Two Years
LEGEND OIL: Issues $1.15 Million Debenture to Lorton Finance
LEO MOTORS: Amends 43 Million Shares Resale Prospectus with SEC
LUCAS ENERGY: Receives Acceptance Of Compliance Plan From NYSE MKT
LURA DEE KIRKLAND: Unsecureds To Recover 100%, With Interest
MAGNO TIRE: Disclosures OK'd; Plan Confirmation Hearing on Nov. 30
MARSH LAND: Case Summary & 10 Unsecured Creditors
MATCHLESS GROUP: Unsecureds To Recoup 100% Under Ch. 11 Plan
MBTI OF PUERTO RICO: Case Summary & 20 Largest Unsecured Creditors
MENCO PACIFIC: Taps Jeffrey S. Shinbrot as Legal Counsel
MICHAEL BUESCHING: Court Questions Plan Feasibility
MICHAEL ISAIAS RODRIGUEZ: Whitney Bank's Bid to Dismiss Suit OK'd
MOHSEN MEHRTASH: Unsecureds To Recoup 100% Under Plan
MOSAIC MANAGEMENT: Taps Erwin Legal as Special Counsel
MUELLER & DRURY: Bank of America To Get $10K on Effective Date
NAVISTAR INTERNATIONAL: Amends ABL Facility with Bank of America
NAVISTAR INTERNATIONAL: Closes $300M Wholesale Funding Transaction
NET DATA: Disclosures OK'd; Plan Confirmation Hearing on Nov. 30
NETA HATHAWAY: Trustee Selling Assets to Stability for $820K
NEW STREAMWOOD: Allowed to Use Waterfall Olympic Cash Until Nov. 4
NORDIC INTERIOR: U.S. Trustee Forms Three-Member Committee
NORTEL NETWORKS: Creditors Fail to Reach Deal on $7.3-Bil. Money
NORTH FORK: Case Summary & 20 Largest Unsecured Creditors
NUVIRA HOSPITALITY: Rohit Kumar To Be Paid $377K Over 18 Months
OMINTO INC: Raises $4 Million in Private Placement
OPUS MANAGEMENT: Rx Pro Taps Organ Cole as Special Counsel
PACIFIC OFFICE: Agrees to Amend $29.4 Million Promissory Notes
PACIFIC OFFICE: Issues $3M Promissory Note to Shidler Equities
PAMELA FROG: Hires Michael Mahoney as Attorney
PAMELA FROG: Wants Approval to Use Cash Collateral
PARKVIEW ADVENTIST: Taps Krigel & Krigel as Special Counsel
PATRIOT FLOORING: Hart, Patriot to Fund $500K for Unsecureds
PERPETUAL ENERGY: S&P Affirms Then Withdraws 'SD' CCR
PETROLEUM PRODUCTS: Court Allows WDI to File Amended Complaint
PETROLEUM PRODUCTS: Unsecureds To Get $125K for 20 Quarters
PETROQUEST ENERGY: S&P Lowers Corporate Credit Rating to 'SD'
PHH CORPORATION: Moody's Lowers CFR to B1, Outlook Stable
PINNACLE INNOVATION: Court Approves Amended Cash Stipulation
PLANET MERCHANT: U.S. Trustee Forms Four-Member Committee
PRELUDE INVESTMENT: Hearing on Cash Use Continued to Nov. 3
PRO MACH: Moody's Retains B3 CFR on Proposed $110MM Loan Add-On
PRO MACH: S&P Retains 'B-' 1st Lien Debt Rating Following Upsize
PUERTO RICO: Hedge Funds Holding GOs Sue Over Sales-Tax Bonds
QUANTUM CORP: Reports Prelim. Fiscal Second Quarter 2017 Revenue
QUINTESS LLC: Case Summary & 20 Largest Unsecured Creditors
REGENCY PARK: Unsecureds To Be Paid in Full After Motel Sale
REX NICHOLS: Selling Baldwin County Property to CPI for $1.4M
REX NICHOLS: Selling Fairhope Office Space Properties for $625K
REX NICHOLS: Selling Stapleton Property to MKA for $1.4M
ROTARY DRILLING: Plan Confirmation Hearing on Oct. 31
SAAD INC: Can Use Cash Collateral on Interim Basis
SAMSON RESOURCES: Fee Examiner Taps Benesch as Co-Counsel
SANTA FE MEDICAL GROUP: PCO's Equitable Apportionment Bid Denied
SCRAP METAL: Plan Confirmation to be Heard on Nov. 16
SEI HOLDING: Moody's Lowers CFR to Caa1, Outlook Stable
SERTA SIMMONS: S&P Affirms 'B' CCR; Outlook Stable
SH 130 CONCESSION: Not In Compliance With Contract, Says TxDOT
SHANGOL INC: Case Summary & 14 Unsecured Creditors
SHELTON FEDERAL GROUP: Monetary Judgment Enforceable by Execution
SOTERA WIRELESS: Can Use Cash Collateral on Interim Basis
SOUTHWEST HOLDINGS: Seeks to Hire Kutak Rock as Special Counsel
STARDUST FINANCE: Moody's Puts B2 CFR Under Review for Upgrade
STONE PANELS: Has Until Nov. 7 to Use PrivateBank Cash Collateral
SUNEDISON INC: Seeks to Hire Binswanger as Real Estate Agent
SUNPOWER BY RENEWABLE: Seeks to Employ BMG as Bookkeepers
TAKATA CORP: Said to Hire Weil Gotshal With Bankruptcy Option
TALEN ENERGY: Moody's Assigns Ba1 Rating on $600MM Sr. Term Loan
TEXAS ROAD: Seeks to Employ Cara Realtors
TMT PROCUREMENT: Unsecured Creditors Want to Use Current Shares
TPP ACQUISITION: Can Get DIP Financing, Use Cash Collateral
TRACK GROUP: Mark Attarian Resigns as Chief Financial Officer
TRANSOCEAN PHOENIX: S&P Assigns 'BB+' Rating on $600MM Sr. Notes
VERTELLUS SPECIALTIES: Wants Plan Filing Period Moved to Dec. 27
VFH PARENT: S&P Assigns 'B' ICR & Rates New $540MM Term Loan 'B'
VIRGINIA LAMBROU: Employs George Geeslin as Bankruptcy Counsel
WAGLE LLC: Disclosures Conditionally OK'd; Hearing on Nov. 8
WESTMORELAND COAL: Amends Existing Credit Facility PrivateBank
WIND ENTERTAINMENT: Unsecureds to Recoup 1-2% Under Ch. 11 Plan
[^] Large Companies with Insolvent Balance Sheet
*********
1422 ST. MARKS: Seeks to Hire Vogel Bach as Legal Counsel
---------------------------------------------------------
1422 St. Marks Ave Management Corp. seeks approval from the U.S.
Bankruptcy Court for the Eastern District of New York to hire legal
counsel in connection with its Chapter 11 case.
The Debtor proposes to hire Vogel Bach & Horn, LLP and pay the firm
an hourly rate of $225 for its services. The services to be
provided by the firm include:
(a) advising the Debtor regarding debt restructuring,
bankruptcy and asset dispositions;
(b) taking all necessary actions to protect and preserve the
Debtor's estate during the pendency of its case;
(c) preparing legal papers and appearing in court; and
(d) advising the Debtor regarding its rights and obligations.
Eric Horn, Esq., at Vogel Bach, disclosed in a court filing that
the firm is a "disinterested person" as defined in section 101(14)
of the Bankruptcy Code.
The firm can be reached through:
Eric H. Horn, Esq.
Vogel Bach & Horn, LLP
1441 Broadway, 5th Floor
New York, NY 10018
Tel: 212-242-8350
Fax: 646-607-2075
Email: vb@vogelbachpc.com
About 1422 St. Marks
1422 St. Marks Ave Management Corp. sought protection under Chapter
11 of the Bankruptcy Code (Bankr. E.D.N.Y. Case No. 16-42541) on
June 8, 2016. The petition was signed by Shandelle Solny, officer.
The case is assigned to Judge Nancy Hershey Lord.
At the time of the filing, the Debtor estimated its assets and
liabilities of $1 million to $10 million.
15 JOHN CORP: Seeks to Hire Aronson as Accountant
-------------------------------------------------
15 John Corp. seeks approval from the U.S. Bankruptcy Court for the
Southern District of New York to hire an accountant.
The Debtor proposes to hire Aronson LLC to prepare its financial
information and file monthly operating reports required by the
Office of the U.S. Trustee.
Aronson will be paid an hourly rate of $225 for its services, and
will receive reimbursement for work-related expenses.
Harry Harrison, a certified public accountant employed with
Aronson, disclosed in a court filing that the firm does not hold
any interests adverse to the Debtor.
The firm can be reached through:
Harry A. Harrison
Aronson LLC
805 King Farm Boulevard, Suite 300,
Rockville, MD 20850
Phone: 301-231-6200
About 15 John Corp.
15 John Corp. sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. S.D.N.Y. Case No. 16-12453) on August 25, 2016. The
petition was signed by Philip Lajaunie, president.
The case is assigned to Judge Michael E. Wiles.
At the time of the filing, the Debtor estimated its assets at
$50,000 to $100,000 and debts at $1 million to $10 million.
A QUIVER FULL: Seeks to Hire Macey Wilensky as Legal Counsel
------------------------------------------------------------
A Quiver Full, Inc. seeks approval from the U.S. Bankruptcy Court
for the Northern District of Georgia to hire Macey, Wilensky &
Hennings LLC.
Macey will serve as the Debtor's legal counsel in connection with
its Chapter 11 case. The services to be provided by the firm
include advising the Debtor regarding its duties and preparing its
Chapter 11 plan of reorganization.
The firm's professionals and their hourly rates are:
Attorneys Hourly Rates
--------- ------------
Frank B. Wilensky $450
Todd E. Hennings $425
William A. Rountree $350
Todd H. Surden $240
Law Clerk Hourly Rates
--------- ------------
Chris C. Guthrie $150
James R. Jones $175
Paralegal Hourly Rates
--------- ------------
Sandra H. McConnell $120
K. Mike Furlong $120
Sharon Wenger $120
William Rountree, Esq., disclosed in a court filing that the firm
has no connections with any party that would be adverse to the
Debtor's estate.
The firm can be reached through:
William A. Rountree, Esq.
Macey, Wilensky & Hennings, LLC
303 Peachtree St. NE, Suite 4420
Atlanta, GA 30308
Phone: (404) 584-1200
Email: swenger@maceywilensky.com
About A Quiver Full
A Quiver Full, Inc. sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. N.D. Ga. Case No. 16-66793) on September
23, 2016. The petition was signed by Jeff Whitmire, authorized
representative.
At the time of the filing, the Debtor estimated assets and
liabilities of less than $500,000.
ACCIPITER COMMUNICATIONS: Unsecureds to Get 100% in 8 Mos.
----------------------------------------------------------
Pinpoint Holdings, Inc., the proposed purchaser, and the Official
Committee of Unsecured Creditors of Accipiter Communications, Inc.,
doing business as Zona Communications, filed with the U.S.
Bankruptcy Court for the District of Arizona a disclosure statement
in connection with the Chapter 11 Plan of Reorganization proposed
by Pinpoint and the Committee.
The Plan Proponents disclose that during the Chapter 11 Cases,
Pinpoint and the Debtor entered into a non-disclosure agreement
whereby Pinpoint was able to consider the business opportunity
presented by the Debtor's bankruptcy. After conducting on- and
off-site diligence, Pinpoint submitted a letter of intent to the
Debtor and the Committee, whereby Pinpoint outlined certain terms
and conditions by which Pinpoint would acquire 100% of the New
Common Stock of Reorganized Accipiter on the Effective Date for
$5.25 million.
Pinpoint sent a letter to the Committee further outlining the terms
of the Stock Purchase Proposal, and ultimately, the Committee
determined to support the Stock Purchase Proposal and withdrew its
support of the Debtor Plan. Accordingly, the Committee is a
co-proponent of the Plan.
Pinpoint has also discussed with Rural Utilities Service, an agency
of the U.S. Department of Agriculture, the potential treatment of
the RUS Loan Claims. Under the Plan, the RUS Loan Claims are
allowed in the aggregate amount of $20,755,214.
Under the Plan, each holder of an Allowed General Unsecured Claim
receives, in full and final satisfaction of its allowed general
unsecured claim, payment in full in cash of its allowed claim as
follows: (a) its pro rata share of $200,000, to be distributed on
or as soon as reasonably practicable after the Effective Date so
long as such creditor has provided Reorganized Accipiter with a
completed W-8 or W-9 tax form, and (b) payment of the balance of
its allowed general unsecured claim, no later than in eight equal
monthly installments commencing on the first Business Day one month
from the Effective Date.
The Plan provides that the Reorganized Accipiter may prepay any
allowed general unsecured claim, or any remaining balance of such a
claim, in full or in part, at any time on or after the Effective
Date without affecting the timing of payments on account of any
other Allowed General Unsecured Claim. The Installment Payments
shall be secured by a first lien on the Office Building in favor of
the Unsecured Creditor Trustee, who shall be selected by the
Committee and identified in the Plan Supplement.
Based on information provided by the Debtor in the Debtor
Disclosure Statement, the Plan Proponents believe that the allowed
general unsecured claims will total approximately $615,000.
All Cash necessary for Reorganized Accipiter to make payments
pursuant to the Plan shall be obtained from existing Cash balances
of the Debtor and Reorganized Accipiter (including the payment of
the Purchase Price by the Pinpoint) and the operations of the
Debtor or Reorganized Accipiter, as applicable.
A full-text copy of the Disclosure Statement dated September 29,
2016 is available at https://is.gd/SFl3na
Counsel for Pinpoint Holdings, Inc.
Jared G. Parker, Esq.
PARKER SCHWARTZ, PLLC
7310 North 16th Street, Suite 330
Phoenix, AZ 85020
-- and --
Lisa G. Beckerman, Esq.
Joanna Newdeck, Esq.
AKIN GUMP STRAUSS HAUER & FELD LLP
One Bryant Park
New York, NY 10036
Counsel for the Official Committee of Unsecured Creditors
Alisa C. Lacey, Esq.
Christopher C. Simpson, Esq.
STINSON LEONARD STREET LLP
1850 N. Central Avenue, Suite 2100
Phoenix, AZ 85004
About Accipiter Communications
Accipiter Communications, Inc., a Phoenix-based company that
provides telecommunications services to unserved or underserved,
mostly rurally-situated residences and businesses in central
Arizona, filed a Chapter 11 bankruptcy petition (Bankr. D. Ariz.
Case No. 14-04372) in its hometown on March 28, 2014.
Accipiter provides telecommunications services to 1,409 residential
subscribers and 231 business subscribers, including an elementary
school, an enforcement agency, a fire station, two municipal water
supply facilities, and a bank.
The Debtor is able to provide telecommunications services to rural
customers only by participating in two federal programs: revenue
subsidies from the federal Universal Service Fund, which is
administered under the authority of the Federal Communications
Commission, and capital debt financing provided under a rural
telecommunications loan program administered by the Rural Utilities
Service, an agency of the U.S. Department of Agriculture.
As of the Petition Date, the Debtor owed $20.8 million in aggregate
principal to the RUS. The Debtor believes there is approximately
$414,000 in prepetition general unsecured claims held by trade
vendors or other parties against the Debtor. The Debtor is a
privately held company, with 55.4% of the stock held by Lewis van
Amerongen. In its schedules, the Debtor listed $31.3 million in
assets and $21.6 million in liabilities.
The bankruptcy case is assigned to Judge George B. Nielsen Jr.
The Debtor has tapped Perkins Coie LLP as counsel.
Ilene J. Lashinsky, U.S. Trustee for Region 14, appointed these
three creditors to serve in the Official Committee of Unsecured
Creditors. The Committee retained Stinson Leonard Street LLP as
counsel.
ADAMSVILLE PROPERTIES: Hires Quinn Law as Counsel
-------------------------------------------------
Adamsville Properties, LLC seeks authorization from the U.S.
Bankruptcy Court for the Western District of Pennsylvania to employ
The Quinn Law Firm as counsel.
The Debtor requires Quinn Law to:
(a) give Debtor legal advice with respect to its powers and
duties in the continued operation of its business and
management of its property as a debtor-in-possession;
(b) investigate the validity of various security interests
allegedly given by the Debtor to certain lenders;
(c) draft legal instruments and documents necessary to the
continued operation of the Debtor's business;
(d) prepare the necessary motions, complaints, applications,
answers, orders, reports and other legal documents;
(e) assist the Debtor in the formulation and presentation of a
plan of reorganization and disclosure statement;
(f) perform other legal services for the Debtor which may be
necessary.
Quinn Law will be paid at these hourly rates:
Lawyers $100-$325
Paraprofessionals $65-$90
Quinn Law will also be reimbursed for reasonable out-of-pocket
expenses incurred.
In the 90 days prior to the Petition Date, Quinn Law received a
retainer from the Debtor in connection with this Chapter 11
Bankruptcy filing in the amount of $5,000.
Michael P. Kruszewski, member of Quinn Law, 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 Bankruptcy Court will hold a hearing on the application on
October 20, 2016, at 9:30 a.m. Objections were due October 10,
2016.
Quinn Law can be reached at:
Michael P. Kruszewski, Esq.
THE QUINN LAW FIRM
2222 West Grandview Blvd.
Erie, PA 16506
Tel: (814) 833-2222
Fax: (814) 833-6753
E-mail: mkruszewski@quinnfirm.com
About Adamsville Properties
Adamsville Properties, LLC, sought Chapter 11 protection (Bankr.
W.D. Pa. Case No. 16-10923) on September 22, 2016, disclosing under
$1 million in both assets and liabilities. The Debtor is
represented by Michael P. Kruszewski, Esq., at The Quinn Law Firm.
No official committee of unsecured creditors has been appointed in
the case.
AFFINITY HEALTH: Plans Business Model Change, PCO Says
------------------------------------------------------
Nancy Shaffer, the Patient Care Ombudsman appointed for Health Care
Investors, Inc., has reported before the U.S. Bankruptcy Court for
the District of Connecticut, regarding the quality of patient care
provided to the residents of the Debtors' facilities on September
27, 2016.
As regards Alexandria Manor facility, the PCO has reported
regarding the final discharge of its last resident on July 29,
2016. A follow-up on the status of the last discharged resident
reveals that resident is doing very well living in their own
apartment in the community and expresses happiness to be living
independently with supports.
Moreover, the complaints received from Blair Manor's facility were
resolved through the intervention of the Regional Ombudsman,
Michael Michalski. According to the Centers for Medicare and
Medicaid Services, Blair Manor is upgraded to a "Five Star"
facility on its website Medicare.gov/nursinghomecompare.
Meanwhile, Douglas Manor facility remains generally well-maintained
and clean. The PCO has not received any complaints within the
facility about care or services by either residents or family
members in the last sixty days. Informal interviews and
observations have not revealed issues or concerns to bring to the
Court's attention.
Lastly, the Debtor plans a business model change to include a
twelve-bed secured memory unit at its Ellis Manor facility. The
Debtor is still working with the Department of Public Health to
develop the plans, which unit is expected to open in October, 2016.
Ellis Manor facility had just been cited with 12 deficiencies by
the Department of Public Health's annual licensure and
certification survey conducted in July 2016. Ellis Manor submitted
a Plan of Correction for each of these citations and the plan was
subsequently approved by the Department of Public Health.
About Affinity Health Care Management
Affinity Health Care Management, Inc., Health Care Investors, Inc.
d/b/a Alexandria Manor, Health Care Alliance, Inc. d/b/a Blair
Manor, Health Care Assurance, L.L.C. d/b/a Douglas Manor and Health
Care Reliance, L.L.C. d/b/a Ellis Manor, are a nursing home
management company. They filed for Chapter 11 bankruptcy protection
(Bankr. D. Conn. Case Nos. 16-30043 to 16-30047) on January 13,
2016. Hon. Julie A. Manning presides over the cases. Elizabeth J.
Austin, Esq., Irve J. Goldman, Esq. and Jessica Grossarth, Esq., at
Pullman & Comley, LLC, serve as counsel to the Debtors.
In its petition, Affinity Health Care Management estimated $50,000
to $100,000 in assets and $500,000 to $1 million in liabilities.
The Debtors noted in a court filing that their total secured and
unsecured debt exceeding $16 million.
The Debtors' petitions were signed by Benjamin Fischman,
president.
A committee of unsecured creditors has been appointed and Neubert
Pepe & Monteith, P.C. has been retained as the committee's counsel.
ALLEGHENY BUILDERS: Hires Frobenius Conaway as Accountant
---------------------------------------------------------
Allegheny Builders & Contractors, Inc. seeks authorization from the
U.S. Bankruptcy Court for the District of Maryland to employ Donna
Vagnoni, CPA of Frobenius Conaway Co., P.C. as accountant.
The Debtor requires Frobenius Conaway to provide tax advice and tax
preparation.
Frobenius Conaway will be reimbursed for reasonable out-of-pocket
expenses incurred.
Donna Vagnoni, partner and principal of Frobenius Conaway, 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.
Frobenius Conaway can be reached at:
Donna Vagnoni
FROBENIUS CONAWAY CO., P.C.
6411 Ivy Lane, Suite 308
Greenbelt, MD 20770
About Allegheny Builders
Allegheny Builders & Contractors, Inc., based in Olney, Md., filed
a Chapter 11 petition (Bankr. D. Md. Case No. 16-17760) on June 8,
2016. The Hon. Thomas J. Catliota presides over the case. Daniel
M. Kennedy, III, Esq., at Barkley & Kennedy, Chartered, serves as
bankruptcy counsel.
In its petition, the Debtor declared $1.14 million in total assets
and $1.26 million in total liabilities. The petition was signed by
Edward Boyko, president.
AMERICAN TOOLS: Case Summary & 20 Largest Unsecured Creditors
-------------------------------------------------------------
Debtor: American Tools, Inc.
205 Ave Laurel
Minillas Industrial Park
Bayamon, PR 00959
Tel: 787-759-8090
Case No.: 16-08071
Chapter 11 Petition Date: October 7, 2016
Court: United States Bankruptcy Court
District of Puerto Rico (Old San Juan)
Judge: Hon. Brian K. Tester
Debtor's Counsel: Emily Darice Davila Rivera, Esq.
LAW OFFICE EMILY D DAVILA RIVERA
420 Ponce Leon Midtown Suite 311
San Juan, PR 00918
Tel: 787 753-2368
Fax: 787 759-9620
E-mail: davilalawe@prtc.net
Estimated Assets: $500,000 to $1 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Jimmy Cepeda Benavides, vice president -
treasurer.
A copy of the Debtor's list of 20 largest unsecured creditors is
available for free at http://bankrupt.com/misc/prb16-08071.pdf
ASHBURY HILLSIDE: Trustee Selling Purcellville Property for $410K
-----------------------------------------------------------------
Kevin R. McCarthy, the Chapter 11 Trustee for Ashbury Hillside,
LLC, asks the U.S. Bankruptcy Court for the Eastern District of
Virginia to authorize the sale of approximately 64.5 acres, more or
less, of undeveloped land along Ashbury Church Road, Purcellville,
Loudoun County, Virginia, to Highland Construction Management
Services, LP, for $410,000, subject to higher and better offers.
The bulk of the property is subject to a conservation easement in
favor of The Northern Virginia Conservation Trust which materially
limits the development of the property. Other portions of the
property are subject to a lien in favor of Summit Community Bank,
Inc. The property's location and topography, together with
applicable land-use restrictions, give rise to significant
development challenges.
On Aug. 15, 2016, the Trustee filed an application with the Court
for authority to employ Myers Appraisal Service to prepare an
"Appraisal" of the property under various development scenarios.
The Court entered an order granting the application on Aug. 26,
2016.
On Aug. 19, 2016, the Trustee filed an application with the Court
for authority to employ C&G Consultants, LLC to prepare a
development analysis and development cost estimates to assist Myers
in preparing the Appraisal. The Court entered an order granting
this application on Aug. 26, 2016.
Myers (utilizing the work of C&G) has now delivered the completed
Appraisal to the Trustee. The Appraisal determines that the fee
simple, market value of the property is $410,000 and that the
highest and best use of the Property is as a single residential
lot. The Appraisal further determines that the prorated value of
the portions of the property that are subject to the lien of Summit
Bank is $168,000, which represents 41% of the overall market value
of the property.
In reliance upon the Appraisal, the Trustee, as seller, has entered
into an Agreement of Purchase and Sale of Real Property and Assets
("Contract") with Highland, as buyer, for the sale of the estate's
fee simple interest in the Property at a gross price of $410,000.
The validity and enforceability of the Contract is subject to its
approval by the Court in the case.
A copy of the Contract attached to the Motion is available for free
at:
http://bankrupt.com/misc/Ashbury_Hillside_93_Sales.pdf
Under the Contract, Highland is required to lodge an earnest money
deposit of $25,000 with Trustee's counsel. In the event of a
default by Highland under the Contract, the Trustee's remedies are
limited to retention of the deposit. No real estate commissions
will be payable under the Contract.
Summit Bank is the holder of a Promissory Note, dated June 11,
2004, as amended, in the original principal amount of $275,000,
make by Joseph L. Bane, Jr. The Promissory Note is secured by a
Credit Line Deed of Trust encumbering certain parcels of the
property. Pursuant to Summit Bank's proof of claim in the case,
Summit Bank was owed $393,764 under the Promissory Note as of the
Petition Date. Summit Bank's only claim against the Debtor is
based upon its lien against the property.
The Trustee seeks to sell the property free and clear of Summit
Bank's lien, and thus Summit Bank's consent to the sale is required
under 11 U.S.C. Section 363(f)(2).
The Trustee further seeks approval to pay from the proceeds of the
sale at closing (a) 41% of the net sale proceeds to Summit Bank in
satisfaction of its lien encumbering certain parcels of the
Property (but not as to any parcels that are not part of the
Property), (b) to any tax authority an amount sufficient to satisfy
any tax lien against the property (prorated to the date of
closing), and (c) customary closing costs pursuant to the Contract
and customary practice relating to the sale of commercial real
estate within the Commonwealth of Virginia.
Because the sale price under the Contract represents the full
appraised value of the property, and no real estate commissions are
payable in connection with the sale, the Trustee is not currently
attempting to market the property to other prospective purchasers.
Nonetheless, the Trustee and Highland understand that the Contract
is subject to timely higher and better offers from third parties
and the Trustee's notice of the Motion and the hearing thereon
clearly advises that the Court will entertain higher and better
offers.
Highland Construction Management Services, LP, is represented by:
James P. Campbell, Esq.
HIGHLAND CONSTRUCTION MANAGEMENT LP
1602 Village Market Blvd. #220
Leesburg, VA 20175
Telephone: (703) 771-8344
Facsimile: (703) 771-1485
About Ashbury Hillside
Three alleged creditors filed an involuntary Chapter 11 petition
for Ashbury Hillside, LLC (Bankr. E.D. Va. Case No. 15-11801) on
May 26, 2015.
The petitioning creditors are Joseph Bane, Jr., Warren R. Stein PC
and PSD, LLC. The creditors tapped as counsel David J. McClure,
Esq., at McClure & Bruggemann.
Kevin R. McCarthy, serves as the Chapter 11 trustee of the Debtor.
Stephen E. Leach, Esq., of Hirschler Fleisher P.C., represents the
Chapter 11 Trustee.
AVACEND INC: Seeks to Hire Macey Wilensky as Legal Counsel
----------------------------------------------------------
Avacend Inc. seeks approval from the U.S. Bankruptcy Court for the
Northern District of Georgia to hire Macey, Wilensky & Hennings LLC
as its legal counsel.
The services to be provided by the firm include advising the Debtor
regarding its duties and preparing its Chapter 11 plan of
reorganization. The firm's professionals and their hourly rates
are:
Attorneys Hourly Rates
--------- ------------
Frank B. Wilensky $450
Todd E. Hennings $425
William A. Rountree $350
Todd H. Surden $240
Law Clerk Hourly Rates
--------- ------------
Chris C. Guthrie $150
James R. Jones $175
Paralegal Hourly Rates
--------- ------------
Sandra H. McConnell $120
K. Mike Furlong $120
Sharon Wenger $120
In a court filing, William Rountree, Esq., disclosed that the firm
has no connections with any party that would be adverse to the
Debtor's estate.
The firm can be reached through:
William A. Rountree, Esq.
Macey, Wilensky & Hennings, LLC
303 Peachtree St. NE, Suite 4420
Atlanta, GA 30308
Phone: (404) 584-1200
Email: swenger@maceywilensky.com
About Avacend Inc.
Avacend, Inc. filed a Chapter 11 petition (Bankr. N.D. Ga. Case No.
16-66654), on September 21, 2016. The petition was signed by
Kanchana Raman, authorized representative. The Debtor is
represented by William A. Rountree, Esq. at Macey, Wilensky &
Hennings, LLC. At the time of filing, the Debtor estimated assets
at $1 million to $10 million and liabilities at $1 million to $10
million.
A copy of the Debtor's list of 20 unsecured creditors is available
for free at http://bankrupt.com/misc/ganb16-66654.pdf
AVSC HOLDING: S&P Affirms 'B' CCR, Off Watch Negative
-----------------------------------------------------
S&P Global Ratings affirmed and removed its ratings, including the
'B' corporate credit rating, on audiovisual services provider, AVSC
Holding Corp. from CreditWatch, where it had placed them with
positive implications on June 9, 2016. The rating outlook is
stable.
"The rating actions reflect our view that following AVSC's
postponement of its IPO, its leverage will remain above 5x in
2017," said S&P Global Ratings' credit analyst Heidi Zhang. "We
could raise our corporate credit rating on AVSC if the company does
launch an IPO and uses the proceeds to repay debt, causing leverage
to fall under 5x." As the timing of the potential IPO is
uncertain, S&P don't factor the effect of a potential IPO into its
ratings and outlook on the company.
The stable outlook reflects S&P's expectation that AVSC's liquidity
will remain adequate and its adjusted leverage will decline to the
low-5x area over the next 12 months.
S&P could consider raising the corporate credit rating if the
company moderates its financial policy or completes an IPO such
that it reduces adjusted leverage to below 5x on a sustained basis
while generating meaningful discretionary cash flow.
S&P could lower the rating if ASVC's discretionary cash flow
approaches breakeven levels or if its adjusted leverage rises above
7x. This could result from economic cyclicality, large
debt-financed acquisitions or dividends, underperforming
acquisitions, increased competitive or client pressure on pricing.
AZURE MIDSTREAM: Common Units Delisted from NYSE
------------------------------------------------
The New York Stock Exchange LLC has filed a Form 25 notification
with the Securities and Exchange Commission relating to the removal
from listing or registration of Azure Midstream Partners, LP's
common units representing limited partner interests on the
Exchange.
About Azure Midstream
Azure Midstream Partners, LP, is a publicly traded Delaware master
limited partnership that was formed by NuDevco Partners, LLC and
its affiliates to develop, own, operate and acquire midstream
energy assets. The Company currently offers: (i) natural gas
gathering, compression, dehydration, treating, processing, and
hydrocarbon dew-point control and transportation services to
producers, marketers and third-party pipeline companies through our
gathering and processing business segment; and (ii) crude oil
logistics services to Associated Energy Services, LP, an affiliate,
through its logistics business segment.
As of June 30, 2016, Azure had $418.37 million in total assets,
$236.88 million in total liabilities and $181.48 million in total
partners' capital.
Azure reported a net loss of $222.42 million for the year ended
Dec. 31, 2015, compared to a net loss of $6.82 million for the year
ended Dec. 31, 2014.
KPMG LLP, in Dallas, Texas, issued a "going concern" qualification
on the consolidated financial statements for the year ended
Dec. 31, 2015, citing that the Partnership anticipates being out of
compliance with the requirements in the Credit Agreement during
2016, which would accelerate the maturity of the outstanding
indebtedness making it currently due and payable. The Partnership
does not have sufficient liquidity to meet the accelerated debt
service requirements. This issue raises substantial doubt about
its ability to continue as a going concern.
* * *
As reported by the TCR on Sept. 23, 2016, S&P Global Ratings
lowered its corporate credit rating on Azure Midstream Energy LLC
to 'CCC+' from 'B-'. "The downgrade reflects our view that Azure's
credit measures have worsened due to unfavorable commodity prices
and weak industry conditions, which has made it more challenging to
meet its financial commitments," S&P Global Ratings analyst Mike
Llanos said.
The TCR reported on Aug. 15, 2016, that Moody's Investors Service
downgraded Azure Midstream Energy LLC's Corporate Family Rating
(CFR) to Caa2 from B3, Probability of Default Rating (PDR) to
Caa2-PD from Caa1-PD, senior secured term loan rating to Caa2 from
B3, and the senior secured revolving credit facility rating to B1
from Ba3. The Speculative Grade Liquidity rating was withdrawn.
The outlook remains negative.
BEEBE DIVERSIFIED: U.S. Trustee Forms Three-Member Committee
------------------------------------------------------------
Tracy Hope Davis, the U.S. Trustee for Region 17, on Oct. 5
appointed three creditors of Beebe Diversified Limited Partnership
to serve on the official committee of unsecured creditors.
The committee members are:
(1) Jamie Bustos, Finance Manager
Pape' Material Handling, Inc.
dba Pape' Rents
2430 Grand Avenue
Sacramento, CA 95838
(2) Sara J. Stripe
8712 Milo Court
Elk Grove, CA 95624
(3) Chad Wilson of Lanak & Hanna, P.C.
Counsel for Corix Water Products (US), Inc.
625 The City Drive South, Suite 190
Orange, CA 92868
Official creditors' committees have the right to employ legal and
accounting professionals and financial advisors, at a debtor's
expense. They may investigate the debtor's business and financial
affairs. Importantly, official committees serve as fiduciaries to
the general population of creditors they represent.
About Beebe Diversified Limited Partnership
Beebe Diversified Limited Partnership filed a Chapter 11 petition
(Bankr. E.D. Cal. Case No. 16-25618), on Aug. 25, 2016. The
petition was signed by Elizabeth Beebe, general partner.
The case is assigned to Judge Christopher M. Klein. The Debtor's
counsel is Anthony Asebedo, Esq. at Meegan, Hanschu & Kassenbrock.
At the time of filing, the Debtor estimated assets at $1 million to
$10 million and liabilities at $1 million to $10 million. A copy
of the Debtor's list of 20 largest unsecured creditors is available
for free at http://bankrupt.com/misc/caeb16-25618.pdf
BELIEVER'S BIBLE: U.S. Trustee Unable to Appoint Committee
----------------------------------------------------------
The Office of the U.S. Trustee on Oct. 6 disclosed in a court
filing that no official committee of unsecured creditors has been
appointed in the Chapter 11 case of Believer's Bible Christian
Church, Inc.
Believer's Bible Christian Church, Inc., filed a Chapter 11
petition (Bankr. N.D. Ga. Case No. 08-61958) on Feb. 4, 2008. The
Debtor is represented by Paul Reece Marr, Esq., at Paul Reece Marr,
P.C. The case is assigned to Judge Joyce Bihary. The Debtor
estimated assets and debts at $1 million to $10 million at the time
of the filing.
BETHEL CATHEDRAL: Employs Coldwell Banker as Real Estate Broker
---------------------------------------------------------------
Bethel Cathedral of Faith Word Center International seeks
authorization from the U.S. Bankruptcy Court for the Northern
District of Mississippi to employ Judy Lundy of Coldwell Banker
Landmark Realty as Real Estate Broker.
The Debtor requires Coldwell Banker to handle the sale of the
Debtor's real property located at 831 MLK Blvd., Grenada, for the
price of $400,000.00.
Coldwell Banker will be paid with a real estate commission in the
amount of 6.0% of the sales price.
Judy Lundy, one of the real estate brokers of Coldwell Banker,
assured the Court that Coldwell Banker 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.
Coldwell Banker can be reached at:
Judy Lundy
COLDWELL BANKER LANDMARK REALTY
1360 Sunset Drive, Suit 1
Grenada, MS 38901
About Bethel Cathedral
Bethel Cathedral of Faith Word Center International file a Chapter
11 petition (Banrk. N.D. Miss. Case No.: 15-13086) on September 2,
2015, and is represented by Robert Gambrell, Esq., in Oxford,
Mississippi.
At the time of filing, the Debtor had $1.14 million in total assets
and $528,000 in total liabilities.
The petition was signed by Alex M Turner, chief executive officer.
The Debtor did not include a list of its largest unsecured
creditors when it filed the petition.
BIOLIFE SOLUTIONS: Rick Stewart Quits as Director
-------------------------------------------------
Mr. Rick Stewart notified Biolife Solutions, Inc., of his decision
to resign, for personal reasons, from his post as a director on the
board of directors of the Company, effective Sept. 30, 2016. The
decision of Mr. Stewart to resign was not the result of any
disagreement with the Company on any matter relating to its
operations, policies or practices, as disclosed in a regulatory
filing with the Securities and Exchange Commission.
About BioLife Solutions
Bothell, Washington-based BioLife Solutions, Inc., develops and
markets patented hypothermic storage and cryo-preservation
solutions for cells, tissues, and organs, and provides contracted
research and development and consulting services related to
optimization of biopreservation processes and protocols.
BioLife reported a net loss of $4.99 million on $6.44 million of
product sales for the year ended Dec. 31, 2015, compared to a net
loss of $3.30 million on $6.19 million of product sales for the
year ended Dec. 31, 2014.
As of June 30, 2016, BioLife had $10.6 million in total assets,
$3.00 million in total liabilities and $7.54 million in total
shareholders' equity.
BIONITROGEN HOLDINGS: Nexus to Provide Eng'g Support Services
-------------------------------------------------------------
BioNitrogen Holdings, Corp. seeks approval from the U.S. Bankruptcy
Court for the Southern District of Florida to hire Nexus
Engineering Group, LLC to provide engineering support services.
The services to be provided by Nexus include an assessment of PRM
Energy Systems Inc.'s bio-mass gasification technology, and an
assessment of the condition of used equipment being offered by
brokers for potential use in a BioNitrogen facility.
The firm's services will be used to support decision making by the
Debtor in progressing a project to demonstrate their patented
process for Urea and Ammonia production, according to court
filings.
Tony Raiche and Ciro Sorrentino, the firm's engineers who will be
providing the services, will be paid $200 per hour and $170 per
hour, respectively.
The firm can be reached through:
Ciro Sorrentino
Nexus Engineering Group, LLC
The Hanna Building
1422 Euclid Avenue, Suite 230
Cleveland, OH 44115
Tel: (281) 309-0493
Cell: (409) 656–0753
About BioNitrogen Holdings, Corp.
BioNitrogen Holdings Corp. (OTC PINK: BION) --
http://www.BioNitrogen.com/-- is a cleantech company that utilizes
patented technology to build environmentally friendly plants that
convert biomass into urea fertilizer.
Miami, Florida-based BioNitrogen Holdings, Corp., formerly known as
Hidenet Securities Architectures, Inc., doing business as
BioNitrogen Corp. and its affiliates filed for Chapter 11
protection (Bankr. S.D. Fla. Case Nos. 15-29505 to 15-29515) on
Nov. 3, 2015. The petition was signed by Carlos A. Contreras,
chairman and chief executive officer.
Bankruptcy Judges Robert A. Mark, Laurel M. Isicoff and Jay Cristol
preside over the cases. Jacqueline Calderin, Esq., at Ehrenstein
Charbonneau Calderin represents the Debtors in their restructuring
effort. BioNitrogen Holdings has unknown assets and liabilities of
$3.5 million. BioNitrogen Florida Holdings and BioNitrogen Plant
FL Taylor estimated assets between $0 to $50,000 and debts at $1
million to $10 million.
BIOSTAGE INC: Provides Update of Cellspan Esophageal Implant
------------------------------------------------------------
Biostage, Inc. announced a regulatory update following its planned
pre-Investigational New Drug (IND) meeting with the U.S. Food and
Drug Administration (FDA) for the advancement of its lead product
candidate, Cellspan Esophageal Implant, into human clinical
studies.
The feedback provided by the FDA to Biostage's proposed clinical
protocol for its Cellspan Esophageal Implant provided clarity for a
clinical path forward for its intended IND filing and the
advancement into Phase 1 human clinical studies. During the
meeting, the FDA requested that the Company extend its pre-clinical
large-animal safety study for its Cellspan Esophageal Implant,
which is currently ongoing and being conducted in compliance with
the FDA Good Laboratory Practice (GLP) regulation. The basis for
the FDA's recommended extension is to mirror the duration of the
proposed Phase 1 human clinical study outlined in the Company's
clinical protocol for its first-in-human clinical study. Biostage
management has determined that it will extend the duration of the
ongoing GLP animal studies and given this update, now expects to
file its IND application with the FDA by the end of the second
quarter of 2017.
Jim McGorry, CEO of Biostage, commented, "We had a substantive
interaction with the FDA including an in-depth review of our novel
combination technology and the current unmet medical need in the
patient population addressed in our proposed plan to support an IND
to initiate a Phase 1 human clinical study for our Cellspan
Esophageal Implant. Our technology has the potential to fill a
major treatment gap for patients with esophageal cancer. We will
implement the FDA's recommendation to extend our ongoing GLP animal
studies and believe the outcome of this meeting enables us to now
have a significant amount of clarity regarding our path to
advancing this novel product into a Phase 1 human clinical study."
"While the FDA's guidance to extend the preclinical study will
extend the filing date of our IND, our meeting was very productive
in that we were able to discuss the potential therapeutic value of
our technology and our ongoing pre-clinical results. Importantly,
the FDA, in principle, agreed to our clinical study approach. As a
result of our meeting, we have a strong rationale to move forward
with a de-risked plan that provides the safety requirements
outlined by FDA. Additionally, we believe our pre-clinical
approach potentially de-risks our clinical development strategy not
only for our Cellspan Esophageal Implant product but more broadly
for the advancement of our CellframeTM Technology platform."
The Company further stated that it remains on track to file INDs
for its Cellspan Pediatric Esophageal Implant and Cellspan
Bronchial Implant as previously announced before the end of 2017.
Mr. McGorry concluded, "We look forward to providing ongoing
insight around the paradigm shift this novel product represents in
the regenerative medicine space and how we have the potential to
address these current unmet needs. We are on track to finalize our
manuscript and publication in collaboration with Mayo Clinic on
esophageal regeneration and host KOL events by year-end with
additional data updates which we believe will further de-risk this
program. Our number one priority is to emerge as rapidly as
possible as a clinical stage company. We believe this will best
position the Company to leverage our proprietary Cellframe
technology platform enabling Biostage to offer a promising
opportunity for people suffering from a variety of oncology
indications, beginning with esophageal cancer as the foundational
program for our pipeline."
As the Company previously reported, Saverio La Francesca, MD,
executive VP and chief medical officer of Biostage will present at
the Cell & Gene Meeting on the Mesa today at 3:15 p.m. PT. As part
of his presentation, Dr. La Francesca will provide an overview of
the Company's Cellframe technology which combines a proprietary
biocompatible scaffold with a patient's own stem cells to create
Cellspan organ implants.
A video webcast of the Company's presentation from the Cell & Gene
Meeting on the Mesa is available at:
www.meetingonthemesa.com/webcast/track2/ and will also be published
on the Alliance for Regenerative Medicine's website shortly after
the event.
About Biostage
Biostage, Inc., formerly Harvard Apparatus Regenerative Technology,
Inc., is a biotechnology company. The Company is engaged in
developing bioengineered organ implants based on its Cellframe
technology. Its Cellframe technology consists of a biocompatible
scaffold that is seeded with the recipient's own cells. It is
developing its Cellframe technology to treat life-threatening
conditions of the esophagus, trachea or bronchus that are caused
due to cancer, infection, trauma or congenital abnormalities. Its
Cellframe technology is engineered to stimulate the body's
signaling pathways and natural healing process to regenerate and
restore organ function.
For more information, please visit www.biostage.com and connect
with the Company on Twitter and LinkedIn.
As of June 30, 2016, Biostage had $9.41 million in total assets,
$1.94 million in total liabilities and $7.47 million in total
stockholders' equity.
Harvard Apparatus reported a net loss of $11.7 million for the year
ended Dec. 31, 2015, compared to a net loss of $11.06 million for
the year ended Dec. 31, 2014.
KPMG LLP, in Boston, Massachusetts, issued a "going concern"
qualification on the consolidated financial statements for the year
ended Dec. 31, 2015, citing that the Company has suffered recurring
losses from operations and will require additional financing to
fund future operations which raise substantial doubt about its
ability to continue as a going concern.
BOOZ ALLEN: Moody's Changes Outlook to Negative & Affirms Ba2 CFR
-----------------------------------------------------------------
Moody's Investors Service has changed the rating outlook of Booz
Allen Hamilton Inc. to negative from stable, and affirmed the debt
ratings, including the Ba2 Corporate Family Rating.
RATINGS RATIONALE
The negative rating outlook reflects the potential for reputational
and financial impact from the Federal Bureau of Investigation's
recent criminal complaint against a former BAH employee. Moreover,
the circumstances surrounding the complaint, at least what has been
disclosed to date, raise questions around the company's internal
controls and governance standards in conducting its business with
the government. This FBI complaint has characteristics similar to
circumstances with another former BAH employee that took place in
2013.
Contractors providing services within highly classified settings
are expected to meet exceptionally high standards of conduct. In
Moody's view, control procedures that match the national security
mission, represent a critical element of operations. BAH derived
about 24% of its revenues from contracts with US intelligence
agencies in the 2016 fiscal year. To the extent this development
affects BAH's reputation negatively, business development prospects
and cash flow generation capability could weaken. Switching costs
and differentiation levels between services contractors are often
not very high and the government can terminate contracts for
convenience or default.
The ratings will remain under pressure unless the company can
demonstrate an effective response, which will probably add
operating cost and thereby lessen price competitiveness. The
rating could be downgraded with backlog losses, debt to EBITDA
rising to the high 3x range, funds from operation/debt descending
toward 15%, diminished liquidity such as from covenant headroom
pressure or ongoing revolver dependence. The rating outlook could
be stabilized with evidence that BAH has addressed the complaint
without a material impact to its financial condition or business
prospects.
Outlook Actions:
Issuer: Booz Allen Hamilton Inc.
Outlook, Changed To Negative From Stable
Affirmations:
Issuer: Booz Allen Hamilton Inc.
Probability of Default Rating, Affirmed Ba2-PD
Speculative Grade Liquidity Rating, Affirmed SGL-2
Corporate Family Rating, Affirmed Ba2
Senior Secured Bank Credit Facility, Affirmed Ba2 (LGD3)
The principal methodology used in these ratings was Global
Aerospace and Defense Industry published in April 2014.
Booz Allen Hamilton, Inc. is a provider of management and
technology consulting and engineering services to governments in
the defense, intelligence and civil markets, global corporations
and not-for-profit organizations. Booz Allen is headquartered in
McLean, Virginia, and reported revenues of approximately
$5.4 billion for the fiscal year ended March 31, 2016. Carlyle
owns about 11% of the outstanding common stock.
CALFRAC WELL: S&P Lowers CCR to 'CCC+'; Outlook Negative
--------------------------------------------------------
S&P Global Ratings said it lowered its long-term corporate credit
rating on Calgary, Alta.-based oilfield services provider Calfrac
Well Services Ltd. to 'CCC+' from 'B'. The outlook is negative.
At the same time, S&P Global Ratings lowered its issue-level rating
on Calfrac Holdings L.P.'s senior unsecured debt to 'CCC' from 'B'.
S&P Global Ratings also revised its recovery rating on the debt to
'5' from '3'. The '5' recovery rating indicates S&P's expectation
of modest (10%-30%; at the lower end of the range) recovery in a
default scenario.
Based on the persistent weakness in hydrocarbon prices and
continued low levels of industry activity, S&P expects that
Calfrac's operating performance will continue to lag below S&P's
previous expectations and will result in dramatic deterioration in
cash flow metrics. "The company's cash on hand and current
availability under its committed revolving credit facility should
be able to support all its funding requirements through 2017, but
we view this funding strategy as characteristic of an unsustainable
capital structure," said S&P Global Ratings credit analyst Michelle
Dathorne.
S&P Global Ratings derives its 'CCC+' corporate credit rating on
Calfrac from:
-- The weak business risk and highly leveraged financial risk
profile assessments of the company; and
-- The application of the 'CCC' criteria in light of S&P's
estimate of negative EBITDA generation in 2016, and very
elevated leverage in 2017, with S&P's fully adjusted debt-
to-EBITDA exceeding 30x in 2017. As a result of the
material deterioration in cash flow and leverage metrics,
S&P believes financial commitments and the company's capital
structure could be unsustainable.
Calfrac's weak business risk profile reflects S&P's assessment of
the company's inability to maintain stable margins and returns
through cost reductions in the low commodity-price environment. In
S&P's opinion, the high fixed costs in Calfrac's overall cost
structure relative to that of other oilfield services companies has
accelerated margin erosion, which in turn has weakened the
company's operating efficiency and profitability profiles.
Persistent weak industry conditions, combined with material
oversupply of equipment, will continue to pressure Calfrac's EBITDA
during our 12-month outlook period. The combination of low
equipment utilization, pricing pressures, and the high fixed
component in the company's cost structure have resulted in
significantly lower operating margins compared with those it
realized at stronger hydrocarbon prices. Specifically, S&P is
projecting Calfrac's revenue to drop more than 50% in 2016 and
expect negative EBITDA generation in 2016. Nevertheless, S&P
believes the company's geographic diversification and
well-established customer relationships somewhat offset these
weaknesses and should support modest improvement in operating
performance beyond 2016.
The highly leveraged financial risk profile reflects S&P's
assessment of Calfrac's elevated forecast debt-to-EBITDA and funds
from operations (FFO)-to-debt ratios. Under S&P's base-case
scenario, it expects core leverage ratios to deteriorate
significantly due to the projected negative EBITDA in 2016. S&P
expects earnings to be modestly positive in 2017, given its
expectation of improving industry conditions, but remain weak, with
FFO-to-debt remaining negative and debt-to-EBITDA remaining well
above 30x. S&P further expects the company to continue scaling
back its capital spending to preserve liquidity and financial
flexibility in these depressed market conditions.
The negative outlook reflects S&P Global Ratings' view of Calfrac's
continued credit profile deterioration. Given the very high debt
leverage and weak core ratios, S&P views the company's overall
capital structure as unsustainable. Based on Calfrac's cash on
hand and availability under its committed revolving credit
facility, the company should be able to support all its funding
requirements in the next 12 months.
S&P would lower the rating if Calfrac's liquidity position
deteriorated such that the company was not able to meet its
financing and maintenance capital spending requirements. This
could occur if Calfrac lost access to a sizable portion of its
credit facility availability.
S&P could revise the outlook to stable if an improved industry
operating environment strengthens the company's liquidity position,
such that it would be able to fully fund its financing and capital
spending requirements from operating cash flow.
CHAMPAGNE SERVICES: Court Denies Application to Employ Counsel
--------------------------------------------------------------
Judge Robert G. Mayer of the United States Bankruptcy Court for the
Eastern District of Virginia denied without prejudice Champagne
Services, LLC's application to employ counsel.
The Troubled Company Reporter, in June, reported that the Debtor
filed an application seeking authority to hire Westlake Legal Group
as its legal counsel.
The debtor filed an application to employ counsel and his law firm.
The Verified Statement signed by proposed counsel stated that
there were no connections between proposed counsel and the
creditors, parties in interest, their respective attorneys and
accountants, or the United States trustee. However, he stated that
the law firm had previously represented the debtor in various
unrelated matters such as "defense of warrant in debt, demand
letters and employment disputes." The United States trustee
replied that the Verified Statement should "disclose the status of
the prior litigation, dates when the representations occurred, and
the amount of money paid" for the matters. In addition, the United
States trustee asked that the retainer agreement be filed with the
court. The debtor did not file any additional disclosures or the
retainer agreement but provided the United States trustee with
additional information about the prior engagements. At the
conclusion of the hearing on the application, the court was
satisfied that the prior representations did create actual
conflicts of interest and announced that it would approve the
employment application if the debtor filed the retainer agreement
and the United States trustee had no further objections.
The debtor emailed a copy of the retainer agreement to the United
States trustee but did not file it with the court. After reviewing
the retainer agreement, the United States trustee filed additional
objections and attached the 16-page retainer agreement as an
exhibit. The United States trustee noted that Geoff Crawley, the
debtor’s sole owner, guaranteed proposed counsel's fees; that Mr.
Crawley was a codebtor on various corporate debts; and that Mr.
Crawley was paid $167,088 within one year prior to the filing of
the petition in this case.
Judge Mayer disapproved the debtor's application for employment
because the application was incomplete and failed to show proposed
counsel is disinterested. The judge also explained that although
there is no per se rule prohibiting debtor's counsel's fee being
paid by or guaranteed by a third party, the question is whether
there is an actual conflict of interest. Judge Mayer found that
the employment application does not provide sufficient facts to
enable a creditor or the United States trustee to determine whether
there is an actual conflict of interest.
Further, Judge Mayer pointed out that the retainer agreement should
have been filed with the employment application and the connections
between Mr. Crawley and the debtor should have been disclosed and
discussed. The judge stated that the application should have
disclosed whether the law firm represented Mr. Crawley in the past
or when the application was filed and the nature of the
representation.
Judge Mayer also held that the employment application would be
denied in any event because the terms of the engagement are wholly
unacceptable in the chapter 11 case.
A full-text copy of Judge Mayer's October 6, 2016 memorandum
opinion is available at
http://bankrupt.com/misc/vaeb16-11683-58.pdf
About Champagne Services
Champagne Services, LLC sought protection under Chapter 11
of the Bankruptcy Code (Bankr. E.D. Va. Case No. 16-11683)
on May 12, 2016.
CHIEFTAIN STEEL: Floyd Industries Employs Barber Law as Counsel
---------------------------------------------------------------
Floyd Industries, LLC, an affiliate debtor of Chieftain Steel, LLC,
seeks authorization from the U.S. Bankruptcy Court for the Western
District of Kentucky to employ Barber Law PLLC as general counsel,
nunc pro tunc to September 19, 2016.
The Debtor requires the Firm to:
(a) advise the Debtor with respect to its powers and duties as
Debtor-in-Possession in the continued management and operation of
its businesses and properties;
(b) attend meetings and negotiate with representatives of
creditors and other parties in interest;
(c) take all necessary action to protect and preserve the
Debtor's estates, including the prosecution of actions on the
Debtor's behalf, the defense of any action commenced against the
Debtor, negotiations concerning all litigation in which the Debtor
is involved, and objections to claims filed against the estates;
(d) prepare on behalf of the Debtor certain motions,
applications, answers, orders, reports, and papers necessary to the
administration of the estates;
(e) promote any proposed plan of reorganization, disclosure
statement, and all related agreements and/or documents filed
contemporaneously herewith or hereafter, and take any necessary
action on behalf of the Debtor to obtain confirmation of such plan,
as necessary;
(f) represent the Debtor in connection with obtaining
post-petition financing and exit financing, as necessary;
(g) advise the Debtor in connection with any potential sales
of assets;
(h) appear before the court, any appellate courts, and the
United States Trustee and protect the interests of the Debtor's
estates before such Courts and the United States Trustee;
(i) consult with the Debtor regarding tax matters; and,
(j) perform all other necessary legal services and provide all
other necessary legal advice to the Debtor in connection with the
chapter 11 cases.
The Firm will be paid at an hourly rate of $300.00, subject to
change annually.
The Firm will also be reimbursed for its reasonable charges for
expenses such as copying, facsimiles, mileage, postage, etc..
The Firm has received a retainer of $15,000 for services and
expenses rendered prepetition (including filing fees) and holds the
remaining balance of $6,329.72 in escrow. The Retainer will be held
in escrow to apply to the Firm's Court approved postpetition fees
and expenses.
T. Kent Barber, attorney at law and owner of the Firm, assured the
Court that the firm is a "disinterested person" as the term is
defined in Section 101(14) of the Bankruptcy Code and does not
represent any interest adverse to the Debtors and their estates.
The Firm can be reached at:
T. Kent Barber, Esq.
Barber Law PLLC
2200 Burrus Drive
Lexington, KY 40513
Tel.: (859) 296-4372
Email: kbarber@barberlawky.com
About Chieftain Steel & Floyd Industries
Chieftain Steel, LLC, sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. W.D. Ky. Case No. 16-10407) on May 2, 2016.
The Debtor is represented by Constance G. Grayson, Esq., at
Gullette & Grayson, PSC. The Debtor also tapped Dinsmore & Shohl
LLP as general bankruptcy counsel to the Debtor
The U.S. trustee for Region 8 on May 20 appointed three creditors
of Chieftain Steel, LLC, to serve on the official committee of
unsecured creditors. The Committee retained Fox Rothschild LLP as
its legal counsel, Bingham Greenebaum Doll LLP as its local
counsel, and Phoenix Management Services, LLC as its financial
advisor.
Floyd Industries, LLC, filed a Chapter 11 petition (Bankr. W.D. Ky.
Case No. 16-10837) on September 19, 2016, and is represented by
Travis Kent Barber, Esq., at Barber Law PLLC, in Lexington,
Kentucky. At the time of filing, Floyd Industries had estimated
assets and liabilities of $1 million to $10 million. The petition
was signed by Bryan Floyd, member. A copy of the Debtor's list of
18 largest unsecured creditors is available for free at
http://bankrupt.com/misc/kywb16-10837.pdf
The Chapter 11 cases of Chieftain Steel and Floyd Industries are
jointly administered.
CHOICE HEALTH: Taps Donica Law Firm as Legal Ccounsel
-----------------------------------------------------
Choice Health Care, Inc. seeks approval from the U.S. Bankruptcy
Court for the Middle District of Florida to hire legal counsel.
The Debtor proposes to hire Donica Law Firm P.A. to provide legal
services in connection with its Chapter 11 case. The services to
be provided by the firm include advising the Debtor regarding its
duties and assisting in negotiations with potential lenders.
Donica received a retainer in the amount of $22,000 from the
Debtor.
Herbert Donica, Esq., at Donica, disclosed in a court filing that
no attorney in his firm represents any interests adverse to the
Debtor and its bankruptcy estate.
The firm can be reached through:
Herbert R. Donica, Esq.
Donica Law Firm P.A.
106 S. Tampania Avenue, Suite 250
Tampa, FL 33609-3256
Phone: (813) 878-9790
Fax: (813) 878-9746
Email: herb@donicalaw.com
About Choice Health Care
Choice Health Care, Inc., d/b/a Rapha Vacular Specialists d/b/a
Premier Vein Institute d/b/a Vascular & Interventional Pavilion
a/k/a VIP d/b/a Premier Vein and Vacular Pavillion, filed a chapter
11 petition (Bankr. M.D. Fla. Case No. 16-08452) on Sept. 29, 2016.
The petition was signed by Stephen J. Steller, president.
The Debtor is represented by Herbert R. Donica, Esq., at Donica Law
Firm PA. The Debtor estimated assets at $0 to $50,000 and
liabilities at $1 million to $10 million at the time of the
filing.
The Debtor operates a medical practice specializing in the
treatment of vein diseases, vascular surgery and related treatments
with its principal places of business located in Hillsborough and
Polk Counties, Florida.
CHOUDRIES INC: Hires AC Valuations as Appraiser
-----------------------------------------------
Choudries, Inc. dba Super Seven Food Mart, seeks authorization from
the U.S. Bankruptcy Court for the Middle District of Pennsylvania
to employ AC Valuations as appraiser.
The Debtor requires AC Valuations for appraisals on its real estate
located at 330 North Hanover Street, Carlisle, Pennsylvania and 558
North 5th Street, Newport, Pennsylvania.
The fee for the appraisals will not exceed $5,000 for the
commercial real estate appraisals ($2,500 for each appraisal). A
downpayment of $2,500 is required to start the appraisal work and
the balance of $2,500 is required at the completion of the
appraisal work.
The Debtor agreed to pay AC Valuations $50 per hour for attendance
or testimony required for one hearing and a new rate of $100 per
hour for any additional hearings.
Angel Corbin, owner of AC Valuations, 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.
AC Valuations can be reached at:
Angel Corbin
AC VALUATIONS
2601 North Front St., Ste. 204
Harrisburg, PA 17110
Tel: (717) 215-8869
E-mail: angelcorbin@comcast.net
About Choudries Inc.
Headquartered in Mechanicsburg, Pennsylvania, Choudries Inc. dba
Super Seven Food Mart filed for Chapter 11 bankruptcy protection
(Bankr. M.D. Pa. Case No. 16-02475) on June 13, 2016, and is
represented by Gary J. Imblum, Esq., at Imblum Law Offices, P.C.
The petition was signed by Abdul Akhter, president. The Debtor
estimated its assets and liabilities at between $1 million and $10
million each. Judge Mary D. France presides over the case.
CIT BANK: Moody's Puts Ba3 Rating on Review for Possible Upgrade
----------------------------------------------------------------
Moody's Investors Service placed the ratings of CIT Group Inc. and
its subsidiary CIT Bank, N.A. on review for possible upgrade. These
include CIT Group's Ba3 senior unsecured, (P)Ba3 subordinate shelf,
(P)B1 preferred shelf, and (P)B2 non-cumulative preferred shelf
ratings, and CIT Bank's ba2 baseline credit assessment and adjusted
baseline credit assessment, Baa3 long-term deposit, Ba3 Issuer and
Prime-3 short-term deposit ratings. This follows CIT's
announcement that it has entered into an agreement to sell its
commercial aircraft leasing business to Avolon Holdings Limited.
Issuer: CIT Bank, N.A.
Adjusted Baseline Credit Assessment, Placed on Review for
Upgrade, currently ba2
Baseline Credit Assessment, Placed on Review for Upgrade,
currently ba2
Counterparty Risk Assessment, Placed on Review for Upgrade,
currently Ba1(cr)
Issuer Rating, Placed on Review for Upgrade, currently Ba3
Long Term Deposit Rating, Placed on Review for Upgrade,
currently Baa3
Short Term Deposit Rating, Placed on Review for Upgrade,
currently P-3
Outlook, Changed To Rating Under Review From Stable
Issuer: CIT Group Inc.
Pref. Shelf, Placed on Review for Upgrade, currently (P)B1
Pref. shelf Non-cumulative, Placed on Review for Upgrade,
currently (P)B2
Subordinate Shelf, Placed on Review for Upgrade, currently
(P)Ba3
Senior Unsecured Bank Credit Facility, Placed on Review for
Upgrade, currently Ba3
Senior Unsecured Regular Bond/Debenture, Placed on Review for
Upgrade, currently Ba3
Outlook, Changed To Rating Under Review From Stable
Issuer: CIT Group Inc. (Old)
Senior Unsecured Regular Bond/Debenture, Placed on Review for
Upgrade, currently Ba3
RATINGS RATIONALE
The review of CIT's ratings reflects the positive effects the sale
of the aircraft leasing unit is expected to have on the company's
risk profile, including a decrease in volatile market funding,
reduction in lease residual risks, simplification of operations and
organizational structure, and elimination of forward aircraft
purchase commitments and associated lease-up and financing risks.
The $10 billion sale price represents a 6.7% premium over the
unit's $9.4 billion net asset value, which is a positive outcome
given that publicly traded aircraft leasing companies are currently
trading below book value. CIT expects to close the transaction by
the end of the first quarter of 2017, subject to regulatory
approvals and customary conditions.
The sale transaction will enable CIT to further its shift toward a
bank deposit funding model by reducing its use of
confidence-sensitive debt capital markets funding. CIT plans to
use most of the sale proceeds to reduce debt balances by $7.8
billion, including repayment of approximately $6 billion of senior
unsecured notes and repayment or transfer of $1.8 billion of
aircraft related structured financings. CIT's pro forma measure of
market funds to tangible banking assets will fall to 20%, down
materially from 29% at June 30, 2016. CIT expects that deposits
will comprise 75% of total funding as a result of the transaction,
up from 65% at 30 June 30, 2016.
The sale of the aircraft leasing business will reduce CIT's
operational and organizational complexity and non-bank risk
exposures. As a result of the sale, CIT estimates that
approximately 80% of its assets will reside in CIT Bank, up from
65% at June 30, 2016. Furthermore, operating lease assets will
decline from 36% of CIT's consolidated earning assets to 19%,
reducing the firm's exposure to aircraft lease residual risks and
the uncertainties associated with the financing and lease-placement
of its aircraft purchase commitments for 132 new aircraft.
Remaining operating lease operations include primarily CIT's
well-positioned and profitable rail car leasing business, a portion
of which resides within CIT Bank. Notwithstanding the sale of the
aircraft leasing business, Moody's believes that CIT's remaining
businesses, although well-positioned competitively, will continue
to reflect its finance company heritage that results in an overall
asset risk profile that is higher than most US regional banks.
CIT will also use approximately $3 billion of the sale proceeds to
return capital to shareholders. The Federal Reserve Bank of New
York also authorized CIT to distribute to shareholders an
additional $325 million, contingent on the company's issuance of a
similar amount of Tier 1 qualifying preferred shares. Moody's
estimates that CIT's pro forma capital position will modestly
deteriorate as a result of these distributions lowering the
company's ratio of tangible common equity to risk weighted assets
to 11.2% from 14.5% as at June 30, 2016. Moody's believes the
reduction does not significantly weigh on the firm's credit
profile, given the higher risk characteristics and capital
intensive nature of the aircraft leasing business compared to most
earning assets of CIT.
During its review, Moody's will assess prospects for CIT's
profitability, given that the aircraft leasing unit has a history
of solid earnings contribution. Moody's will also assess the
company's strategy for further improving its funding structure,
including the resilience and quality of its deposits and plans for
remaining market funding, and the adequacy of its capital targets
given the risk profile of its remaining earning assets.
Moody's could upgrade CIT's ratings if the transaction closing
results in the anticipated reduction in market funds and operating
lease risks, the company's operating cost management is improving
prospects for strong profitability, the company's funding strategy
points to further improvements in the stability and quality of the
company's funding sources, including deposits, and if the company
is expected to maintain adequate capital strength.
Given the review for possible upgrade, there is little prospect for
a downgrade of the ratings.
The principal methodology used in these ratings was "Banks"
published in January 2016.
COOPER INC: Taps Benjamin Wilson as Accountant
----------------------------------------------
Cooper Inc. seeks authorization from the U.S. Bankruptcy Court for
the District of Kansas to employ Benjamin E. Wilson of Adams,
Brown, Beran & Ball, as accountant, nunc pro tunc the July 5, 2016
petition date.
The Debtor requires Adams Brown to (a) prepare all tax returns,
including employee withholding returns when due and (b) ensure that
all unfilled by due tax returns are filed in a reasonable period of
time, not to exceed 90 days from the date of the filing of the
action.
The Debtor also seeks authority to employ the Law Offices of
Michael J. Studtmann and the Law Offices of James T. McIntyre as
counsel, to:
(a) advise and represent the Debtor with respect to all
matters and proceedings in the Chapter 11 case and to prepare on
behalf of the Debtor's necessary applications, motions, answers,
orders, reports, and other legal papers;
(b) assist the Debtor in all bankruptcy issues which may arise
in the administration of the Debtor's affairs, including
representation at the first meeting of creditors, evaluation of
assets, negotiations with the creditors, interest groups, and any
Official Committee of Unsecured Creditors, verification of claims,
and asset disposition;
(c) assist the Debtor with the preparation of and confirmation
of a plan of reorganization;
(d) assist the Debtor in the evaluation and prosecution of
claims and litigation, including insurance coverage issues for the
claims asserted against the Debtor;
(e) provide legal services with respect to the general
corporate, tax, employee benefit, and other general non-bankruptcy
matters to the extent not duplicative of work to be provided by the
other professionals; and,
(f) perform all other necessary legal services and provide all
other necessary legal advice to the Archdiocese in connection with
the Chapter 11 case and its business operations.
Studtmann and McIntyre shall be paid at these hourly rates:
Michael J. Studtmann $300
James T. McIntyre $250
Paralegal $50
Furthermore, Adams Brown will be paid $6,000 for the completion of
the 2012, 2013, 2014, and 2015 corporate tax returns.
The law firm of Michael J. Studtmann has received a post-petition
retainer of $8,000 for its services in the case and has advanced
the filing fee of $1,717. Meanwhile, the law firm of James T.
McIntyre has received no compensation for its services but will
bill in conjunction and through the law firm of Michael J.
Studtmann.
Michael J. Studtmann and James T. McIntyre, attorney-at-law from
the law offices of Michael J. Studtmann and James T. McIntyre,
assured the Court that both firms are considered to be 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.
Counsels Studtmann and McIntyre can be reached at:
Michael J. Studtmann, Esq.
LAW OFFICES OF MICHAEL J. STUDTMANN
6235 W. Kellogg
Wichita, KS 7209
Tel.: 316-854-2037
Fax: 316-942-8498
James T. McIntyre, Esq.
LAW OFFICES OF JAMES T. MCINTYRE
221 S Broadway St.
Wichita, KS 67202
Tel.: (316) 264-8857
Mr. Wilson can be reached at:
Benjamin E. Wilson
ADAMS, BROWN, BERAN & BALL
545 N. Woodlawn
Wichita, KS 67208
Tel.: (316)683-2067
Fax: (316)683-2822
Email: bwilson@abbb.com
About Cooper, Inc.
Cooper, Inc. filed a Chapter 11 bankruptcy petition (Bankr. D.Kan.
Case No. 16-11235) on July 5, 2016. Michael J. Studtmann, Esq., at
Law Offices of Michael Studtmann as bankruptcy counsel.
The Debtor's assets and liabilities are both below $1 million.
CORNERSTONE DENTISTRY: Court Allows Cash Use on Final Basis
-----------------------------------------------------------
Judge James R. Sacca of the U.S. Bankruptcy Court for the Northern
District of Georgia authorized Cornerstone Dentistry, PC, to use
the Bank of North Georgia's cash collateral on a final basis.
The Debtor is indebted to the Bank of North Georgia in the amount
of $144,801. The Bank of North Georgia asserts a secured interest
in, among other things, all the Debtor's inventory, furniture,
fixtures, equipment, accounts and instruments.
The other parties who may assert an interest in the cash collateral
are:
(a) Bankers Healthcare Group, Inc., to whom the Debtor owes
$80,000;
(b) WebBank c/o CAN Capital Asset Servicing, Inc., as
Servicer, to whom the Debtor owes $53,100.
Neither Bankers Healthcare nor CAN Capital filed a response to the
Debtor's Motion and appeared at the final hearing.
The Debtor represented that it is without sufficient funds to
support the continuing operations of its business unless it is
authorized to use cash collateral. The Debtor asserted that if the
Court were to decline to allow it to use cash collateral, the
Debtor and its bankruptcy estate would suffer immediate and
irreparable harm.
The approved Budget provides for total expenses in the amount of:
MONTH AMOUNT
----- ------
October 2016 $38,859
November 2016 $37,359
December 2016 $37,359
January 2017 $43,009
February 2017 $37,359
March 2017 $37,359
April 2017 $37,359
May 2017 $37,359
June 2017 $37,359
July 2017 $37,359
The Debtor was directed to make monthly adequate protection
payments to the Bank of North Georgia in the amount of $664.
The Bank of North Georgia, Bankers Healthcare and CAN Capital were
granted a replacement lien in the cash collateral to the same
extent, validity, and priority as said parties held prepetition,
upon such post-petition personal property of the Debtor that said
parties may have had a valid and enforceable prepetition lien.
A full-text copy of the Order, dated Oct. 7, 2016, is available at
http://bankrupt.com/misc/CornerstoneDentistry2016_1664635jrs_48.pdf
The Bank of North Georgia can be reached at:
BANK OF NORTH GEORGIA
Lori Martin, Special Assets
P.O. Box 1747
Athens, GA 30603-1747
E-mail: lorimartin@synovus.com
The Bank of North Georgia is represented by:
David C. Whitridge, Esq.
THOMPSON, O'BREIN, KEMP & NASUTI, P.C.
40 Technology Parkway South, Suite 300
Norcross, GA 30092
E-mail: dwhitridge@tokn.com
About Cornerstone Dentistry
Cornerstone Dentistry, PC, filed a Chapter 11 petition (Bankr. N.D.
Ga. Case No. 16-64635-jrs), on Aug. 22, 2016. The petition was
signed by Dr. Edward McDonald, CEO. The Debtor's counsel is Paul
Reece Marr, Esq., at Paul Reece Marr, P.C. The Debtor estimated
assets at $50,001 to $100,000 and liabilities at $100,001 to
$500,000 at the time of the filing.
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.
CROSSFIRE MANUFACTURING: Plan Confirmation to be Heard on Nov. 16
-----------------------------------------------------------------
Crossfire Manufacturing LLC obtained Bankruptcy Court approval of
it First Amended Joint Disclosure Statement dated Sept. 20, 2016,
in support of its Chapter 11 Plan.
A hearing will be convened on Nov. 16, 2016, at 1:30 p.m., in
Lubbock, Texas, to consider confirmation of the Plan.
Voting deadline on the Plan is set for Nov. 7.
As previously reported by The Troubled Company Reporter, the Plan
proposes to set aside $220,000 for unsecured claims.
About Crossfire Manufacturing
Crossfire Manufacturing, LLC, and its owners Clifford and Kathryn
Holland sought protection under Chapter 11 of the Bankruptcy Code
(Bankr. N. D. Texas Lead Case No. 16-50070) on March 28, 2016. The
petition was signed by Clifford B. Holland, manager.
At the time of the filing, Crossfire Manufacturing estimated its
assets at $500,000 to $1 million and debts at $1 million to $10
million.
CYCLE SHACK: Unsecured Creditors to Recoup 10% Under Exit Plan
--------------------------------------------------------------
Cycle Shack, Inc., filed with the U.S. Bankruptcy Court a Combined
Chapter 11 Plan of Reorganization and Disclosure Statement. The
Plan identifies each known creditor by name and describes how each
claim will be treated if the Plan is confirmed.
According to the Plan, holders of allowed general unsecured claims
are slated to be paid 10% of their allowed claim. Page 1 of the
Plan says those payments will be made one year from the Plan
Effective Date. Page 4 says the Debtor will make those payments 90
days from Effective Date.
However, any creditor whose allowed general unsecured claim is $250
or less, and any creditor whose allowed claim is larger than $250
but agrees to reduce its claim to $500 will receive on the
Effective Date of the Plan a single payment equal to the full
amount of its allowed claim. In the case of holders of claims in
the amount of $250 to $500, they will receive a single payment of
$250.
The Plan document also provided insight on the events that led to
the bankruptcy filing. According to the Debtor, prior to the
bankruptcy there were two significant lawsuits:
1. The Debtor was engaged in the business of manufacturing
custom parts for Harley Davidson Motorcycles and exclusive license
for "Screaming Eagle" accessories. The relationship was terminated
and litigation ensued, which the Debtor lost and suffered a
judgment for attorneys' fees in the approximate amount of $100,000.
Harley-Davidson levied on the Debtor's bank account, obtaining the
sum of $27,917.08.
2. The Debtor litigated with the California Department of Toxic
Substance Control and stipulated to a judgment that imposed a fine
of approximately $499,000, to be waived should the Debtor operate
for five years without further violation.
A copy of the Combined Plan and Disclosure Statement is available
at:
http://bankrupt.com/misc/canb15-30466-0128.pdf
Cycle Shack, Inc., filed a Chapter 11 bankruptcy petition (Bankr.
N.D. Cal. Case No. 15-30466) on April 14, 2015, estimating under $1
million in both assets and liabilities. It is represented by Iain
A. Macdonald, Esq., at MacDonald Fernandez, LLP.
DAVID JOHN VIDAD: Unsecureds To Be Paid $100,000 in 60 Months
-------------------------------------------------------------
David John Vidad and Elizabeth Anne Vidad filed with the U.S.
Bankruptcy Court for the District of Arizona a disclosure statement
describing the Debtor's plan of reorganization.
The Debtors will be providing to their Class 10 general
non-priority unsecured creditors $100,000 within 60 months of the
Plan's Effective Date. The Debtors will continue their employment
and will make an anticipated payment each month of not less than
$1,667 for the 60 months. At the end of the 60 month plan, or upon
early payment of all amounts called for under the Debtors' Plan, as
confirmed, the Debtors will return to the Court and receive a
discharge of their debts.
Class 10 -- totaling $69,847.93 -- (along with the Class 9
unsecured educational debt) will be paid a pro-rata portion of
their claims by monthly payments of Debtors' disposable income
beginning 30 days after the effective date and continuing through
month 60. The proration will be based on the total of all debts in
Classes 7-10. This will be paid by a payment each month of not
less than $204.50 for the 60 months. At the option of Debtors,
these payments may be made quarterly, and will continue for 60
months or until earlier if the sum of the payments total $12,270.
Once the sum of $12,270 (an amount in excess of the value of the
Debtors' Liquidation Equity) is paid, payments will cease and any
remaining balance on these claims will be discharged (except for
the Class 9 debt).
The Debtors' Plan will be funded by their post-petition salaries
from Vidad & Associates, Thunderbolt Middle School and payments
from the Sotelo Note. The Debtors will act as the Disbursing Agent
under the Plan. Payments will be made monthly under the Plan of
not less than $1,667 for the 60 months. Once the amount of
$100,000 is paid, Debtors' Plan will be complete and they will be
eligible for their discharge at that time. The Debtors may prepay
this amount before month 60.
The Disclosure Statement is available at:
http://bankrupt.com/misc/azb16-08002-21.pdf
The Plan was filed by the Debtor's bankruptcy counsel:
Harold E. Campbell, Esq.
John D. Yohe, Esq.
CAMPBELL & COOMBS, P.C.
1811 S. Alma School Road, Suite 225
Mesa, AZ 85210
Tel: (480) 839-4828
Fax: (480) 897-1461
E-mail: heciii@haroldcampbell.com
john@haroldcampbell.com
David John Vidad and Elizabeth Anne Vidad have been married almost
26 years. Before they were married, on Nov. 24, 1990, David
started his accounting practice, Vidad & Associates, after leaving
S&H Homes, where he was hired as the controller, in June 1989. Liz
was the Public Education Specialist for the Lake Havasu City Fire
Department. She was responsible for implementing a fire safety
program, from kindergarten to high school, and teaching community
businesses CPR, OSHA, first aid, among others.
The Debtors filed for Chapter 11 bankruptcy protection (Bankr. D.
Ariz. Case No. 16-08002) on July 13, 2016. Harold 2 Campbell,
Esq., at Campbell & Coombs, P.C., serves as the Debtor's bankruptcy
counsel.
DEER MEADOWS: Wants to Use DCR Mortgage Cash Through Jan. 31
------------------------------------------------------------
Dear Meadows, LLC, asks the U.S. Bankruptcy Court for the District
of Oregon for authorization to use cash collateral through Jan. 31,
2017.
The Debtor's primary asset is an assisted living facility located
in Sheridan, Oregon. The Property has 47 tenants and is fully
occupied.
The Debtor relates that DCR Mortgage and/or its affiliates, has a
lien covering the Property. The Debtor further relates that DCR
Mortgage also has a lien on tenant rents. The Debtor adds that no
other creditor has a lien on tenant rents.
The Debtor tells the Court that in order to service the tenants and
maintain the Property, it must pay for employee wages, utilities,
taxes, insurance, maintenance, management fees and similar
expenses. The Debtor further tells the Court that without the use
of Cash Collateral to pay these bills as they become due, the
Debtor will breach the various tenant leases it intends to assume
as part of its reorganization and may harm the tenants themselves,
all of whom requires various levels of assisted care from
Debtor’s medical staff. The Debtor contends that without
payment, certain services, utilities, insurance and management,
will be turned off or cancelled, resulting in additional damages to
the tenants and risk to the bankruptcy estate.
The Debtor's proposed Budget covers the period from October 2016
through January 2017. The Budget provides for total expenses in
the amount of $134,475 for October 2016; $126,654 for each of the
months of November 2016 and December; and $131,529 for January
2017.
The Debtor's Motion is scheduled for hearing on Oct. 31, 2016 at
11:00 a.m.
A full-text copy of the Debtor's Motion, dated Oct. 7, 2016, is
available at
http://bankrupt.com/misc/DeerMeadows2016_1633768pcm11_43.pdf
About Deer Meadows
Deer Meadows, LLC, filed a chapter 11 petition (Bankr. D. Ore. Case
No. 16-33768) on Sept. 30, 2016. The petition was signed by
Kristin Harder, manager. The Debtor is represented by Stephen T.
Boyke, Esq., at the Law Office of Stephen T. Boyke. The case is
assigned to Judge Peter C. McKittrick. The Debtor estimated assets
and liabilities at $1 million to $10 million at the time of the
filing.
DELCATH SYSTEMS: Empery Asset Reports 5.14% Stake as of Sept. 30
----------------------------------------------------------------
In a Schedule 13G filed with the Securities and Exchange
Commission, Empery Asset Management, LP, Ryan M. Lane and Martin D.
Hoe disclosed that as of Sept. 30, 2016, they beneficially own
100,000 shares of common stock and 35,000 shares of common stock
issuable upon exercise of warrants representing 5.14 percent of the
shares outstanding. A full-text copy of the regulatory filing is
available for free at https://is.gd/3XlWf0
About Delcath
Delcath Systems, Inc. is an interventional oncology Company focused
on the treatment of primary and metastatic liver cancers. The
Company's investigational product -- Melphalan Hydrochloride for
Injection for use with the Delcath Hepatic Delivery System
(Melphalan/HDS) -- is designed to administer high-dose chemotherapy
to the liver while controlling systemic exposure and associated
side effects. The Company has commenced a global Phase 3 FOCUS
clinical trial for Patients with Hepatic Dominant Ocular Melanoma
(OM) and a global Phase 2 clinical trial in Europe and the U.S. to
investigate the Melphalan/HDS system for the treatment of primary
liver cancer (HCC) and intrahepatic cholangiocarcinoma (ICC).
Melphalan/HDS has not been approved by the U.S. Food & Drug
Administration (FDA) for sale in the U.S. In Europe, our system has
been commercially available since 2012 under the trade name Delcath
Hepatic CHEMOSAT Delivery System for Melphalan (CHEMOSAT), where it
has been used at major medical centers to treat a wide range of
cancers of the liver.
As of June 30, 2016, Delcath had $41.4 million in total assets,
$35.95 million in total liabilities and $5.43 million in total
stockholders' equity.
Delcath reported a net loss of $14.7 million in 2015, a net loss of
$17.4 million in 2014 and a net loss of $30.3 million in 2013.
Grant Thornton LLP, in New York, New York, issued a "going concern"
qualification on the consolidated financial statements for the year
ended Dec. 31, 2015, citing that the Company has incurred recurring
losses from operations and as of Dec. 31, 2015, has an accumulated
deficit of $261 million. These conditions raise substantial doubt
about the Company's ability to continue as a going concern.
DELTEK INC: Moody's Raises CFR to B2; Outlook Stable
----------------------------------------------------
Moody's Investors Service upgraded Deltek, Inc.'s Corporate Family
Rating to B2 from B3. Moody's also upgraded Deltek's Probability
of Default Rating to B2-PD from B3-PD, its 1st lien term loan and
revolver to Ba3 from B1, and its 2nd lien term loan to Caa1 from
Caa2. The upgrade of the CFR to B2 is based upon Moody's
expectation that Deltek will sustain annualized free cash flow to
debt in excess of 5%, and that leverage will be sustained below
7.5x. The rating outlook is stable.
RATINGS RATIONALE
The B2 rating is driven by Deltek's very high leverage levels and
the aggressive financial policies of its private equity owners (as
highlighted by multiple dividend recapitalizations). The ratings
also take into account the entrenched position of Deltek's software
products in the government contractor market. Deltek also has a
leading position as a software provider to numerous professional
services industries, including architecture and engineering firms,
accounting firms, ad agencies and consulting firms, though some
portions of the non-government business are cyclical and can
experience fairly wide swings in revenue. Leverage is very high at
7.3x for the LTM period ended June 30, 2016, on a Moody's adjusted
basis while free cash flow to debt was well positioned in the B2
category at about 6%. Through a combination of EBITDA growth and
debt repayment, Moody's expects leverage to trend to below 7x over
the next 12 to 18 months and free cash flow to debt to be sustained
above 5%. However, further use of debt financing to acquire
businesses or pay dividends to shareholders could result in
leverage levels remaining elevated.
The stable outlook reflects Moody's expectation that free cash flow
to debt will be sustained above 5%.
Though unlikely in the absence of a public equity offering, the
ratings could be upgraded if leverage is sustained below 5.5x and
free cash flow to debt is greater than 10%.
The ratings could face downward pressure if leverage is expected to
remain above 7.5x or if free cash flow to debt is expected to be
below 5% on other than a temporary basis. The ratings could also
be downgraded if the company were to experience material declines
in revenue as a result of competitive pressures or an economic
downturn, or if liquidity were to deteriorate.
Liquidity is good based on $83 million of cash on the balance sheet
and an undrawn $30 million revolver as of June 30, 2016, and the
expectation of free cash flow in excess of $70 million over the
next 12 months.
Upgrades:
Issuer: Deltek, Inc.
Probability of Default Rating, Upgraded to B2-PD from B3-PD
Corporate Family Rating, Upgraded to B2 from B3
Senior Secured 1st lien Bank Credit Facility, Upgraded to Ba3
(LGD3) from B1 (LGD3)
Senior Secured 2nd lien Bank Credit Facility, Upgraded to Caa1
(LGD5) from Caa2 (LGD5)
Senior Secured Revolving Credit Facility, Upgraded to Ba3 (LGD3)
from B1 (LGD3)
Outlook Actions:
Issuer: Deltek, Inc.
Outlook, Remains Stable
The principal methodology used in these ratings was Software
Industry published in December 2015.
Deltek, Inc. is a producer of project focused enterprise software
predominantly serving mid-sized government contractors and
professional services companies. Deltek had revenues of
approximately $467 million in 2015. The company, headquartered in
was acquired in October 2012 by private equity group Thoma Bravo.
DIAMOND TANK: Says It is Not in Default Under Final Cash Order
--------------------------------------------------------------
Diamond Tank Rentals, Inc., asks the U.S. Bankruptcy Court for the
Northern District of Texas to determine that go default under the
Final Cash Collateral Order has occurred.
The Debtor relates that it had entered into an Agreed Final Cash
Collateral Order with its primary secured creditor, Security Bank.
The Debtor further relates that under the terms of the Final Cash
Collateral Order, any notice of default is required to be served
upon the Debtor and the Debtor's counsel.
The Debtor contends that the counsel for Security Bank sent the
Debtor a letter asserting a default of the failure of the Debtor to
pay attorneys fees of Security Bank's counsel, on Sept. 16, 2016.
The Debtor further contends that the default letter was not sent to
the Debtor by Security Bank as required by the Final Cash
Collateral Order.
The Debtor tells the Court that it paid the fees for Security
Bank's counsel on September 29, 2016. The Debtor further tells the
Court that on October 3, 2016, after the fees had been paid,
Security Bank's counsel filed a Notice of Termination of Use of
Cash Collateral asserting a default under the Final Cash Collateral
Order.
The Debtor asserts that no such default occurred because there was
no proper Notice of Default issued by Security Bank, since no
Notice of Default was sent to the Debtor. The Debtor further
asserts that before any Notice of Termination of Use of Cash
Collateral had been filed, the alleged Default had already been
cured.
The Debtor asks the Court to set the matter for hearing and to
determine that the Debtor is not in default under the Final Order
to Use Cash Collateral.
A full-text copy of the Debtor's Response dated Oct. 7, 2016, is
available at
http://bankrupt.com/misc/DiamondTankRentals2016_1641547rfn11_134.pdf
About Diamond Tank Rentals
Diamond Tank Rentals Inc., Diamond T. Industries LLC and TNT
Forklifts Inc. sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. N. D. Texas Lead Case No. 16-41547) on April 15, 2016.
The petition was signed by Roger Turner, president. The Debtor is
represented by Eric A. Liepins, Esq., at Eric A. Liepins, P.C. The
case is assigned to Judge Russell F. Nelms. The Debtor estimated
assets at $0 to $50,000 and liabilities at $1 million to $10
million at the time of the filing.
DIVERSE ENERGY: Amends Disclosure Statement
-------------------------------------------
Diverse Energy Systems LLC filed with the Bankruptcy Court a First
Amended Disclosure Statement with respect to the Plan of
Liquidation of Diverse Energy Systems, LLC, to make more
disclosures.
Among other things, the Amended Disclosure Statement identified the
estimated amount of Class 1 Priority Non-Tax Claims to be $33,611,
the estimated number of holders to be 13, and the estimated
recovery to be 100%.
A copy of the First Amended Disclosure Statement dated Sept. 30,
2016 is available at http://bankrupt.com/misc/txsb15-34736-512.pdf
s reported by the Troubled Company Reporter on Sept. 27, 2016,
Diverse Energy Systems, LLC's plan provides for the liquidation of
the remaining assets of the company and the distribution of the
proceeds to creditors. Each Class 3 unsecured creditor will receive
its pro rata share of net cash, all in one or more distributions
made from time to time as may be determined by the liquidating
agent. Recoveries for Class 3 unsecured creditors, which assert a
total of $28 million in claims, will depend largely on how much
Diverse Energy will recover from the lawsuit it filed against David
Sloan and the law firm of Sloan & Moyer, LLP.
About Diverse Energy
Diverse Energy Systems, LLC, et al., filed Chapter 11 bankruptcy
petitions (Bankr. S.D. Tex. Lead Case No. 15-34736) on Sept. 7,
2015. The jointly administered cases have been assigned to Judge
Karen K. Brown.
Forshey Prostok LLP serves as the Debtor's counsel. SSG Advisors,
LLC serves as the Debtor's financial and restructuring advisor. The
Debtor tapped Gordon Brothers Asset Advisors, LLC as appraiser.
Diverse is the indirect parent of ITS Engineered Systems, Inc. ITS
filed a voluntary petition for relief under Chapter 11 of the
Bankruptcy Code on April 17, 2015. ITS's bankruptcy case is
currently pending in this Court as Case No. 15-32145.
Diverse is a provider of integrated solution platforms for upstream
and midstream customers in the natural gas production, oil
production, and water treatment industries.
On Oct. 5, 2015, Diverse disclosed total assets of $15,836,103 and
total liabilities of $3,261,959.
* * *
The Debtors closed on the sale of certain assets to Cimarron
Acquisition Co. on Jan. 29, 2016.
As part of the Debtors' bankruptcy cases, the Debtors sold
substantially all of their assets to Cimarron Acquisition Co. n/k/a
CE Diverse Energy Co. This sale was approved by Court order dated
Jan. 22, 2016. Thus, the Debtors are no longer operating as a
going concern.
DOT HEADQUARTERS: S&P Affirms Then Withdraws BB+ Rating on A-1 Cert
-------------------------------------------------------------------
S&P Global Ratings has affirmed its 'BB+' rating on DOT
Headquarters Depositor Corp., D.C.'s series 2004 taxable
lease-backed mortgage pass-through class A-1 certificates. S&P
subsequently withdrew its rating.
"The withdrawal reflects our business decision to no longer devote
our analytic resources to rate the transaction," said S&P Global
Ratings credit analyst Victor Medeiros, "given its unique structure
that makes it an outlier as compared to other credits in our
federal lease-backed portfolio."
EAST COAST: Bradley D. Sharp Named Ch. 11 Trustee
-------------------------------------------------
Judge Sheri Bluebond of the U.S. Bankruptcy Court for the Central
District of California entered an order approving the appointment
of Bradley D. Sharp as Chapter 11 Trustee for East Coast Foods,
Inc. on September 29, 2016.
Peter C. Anderson, the United States Trustee, filed an application
for an order approving the appointment of Mr. as Chapter 11 Trustee
for East Coast Foods Inc.
Mr. Sharp assured the Court that his 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.
Bradley Sharp can be reached at:
Bradley D. Sharp
DEVELOPMENT SPECIALISTS, INC.
333 South Grand Avenue, Suite 4070
Los Angeles, CA
About East Coast Foods
East Coast Foods, Inc., a California corporation, is the owner and
operator of four Roscoe’s Chicken N' Waffles restaurants is Los
Angeles area. East Coast Foods sought protection under Chapter 11
of the Bankruptcy Code (Bankr. C.D. Cal. Case No. 16-13852) on
March 25, 2016. The petition was signed by Herbert Hudson,
president.
The Debtor is represented by Vakhe Khodzhayan, Esq., at KG Law,
APC. The case is assigned to Judge Sheri Bluebond.
The Debtor estimated assets of $0 to $50,000 and debts of $10
million to $50 million.
The Office of the U.S. Trustee on April 29 appointed five
creditors
of East Coast Foods, Inc., to serve on the official committee of
unsecured creditors.
ELEPHANT TALK: Divests ValidSoft Through A Management Buy Out
-------------------------------------------------------------
Elephant Talk Communications Corp. announced the divestiture of its
wholly-owned subsidiary, ValidSoft, completing the last major step
in the Company's comprehensive restructuring plan. Elephant Talk
preserves its ability to continue to co-market and bundle
ValidSoft's Voice Biometric and Authentication services, which
represents ongoing revenue generation opportunities as part of a
perpetual license, without restrictions, including incorporating
ValidSoft's future release versions into Elephant Talk's growing
global mobility cloud platform offerings.
A management buy-out group, VSFT Holdings, led by Pat Carroll, the
founder and CEO of ValidSoft, has agreed to acquire the shares of
ValidSoft for a combination of $2 million in cash, which is being
used to reduce the note of Elephant Talk's senior secured lender,
Atalaya and a $1 million unsecured note, bearing 5% interest, with
a 2-year maturity date. Additional value is immediately derived
from this sale of ValidSoft by the cessation of cash burn
associated with the net losses operationally incurred by ValidSoft.
This number has been as high as $380,000 monthly during the recent
12 months. Elephant Talk restructuring and cost reductions have
reduced this number to approximately $200,000 monthly, which now is
eliminated, and produces a direct P&L benefit of approximately $2.4
million in the coming 12 months. This net value also immediately
moves Elephant Talk to EBITDA neutral, as operationally adjusted
for restructuring charges at the end of September 2016. The total
direct and indirect value to Elephant Talk is expected to be more
than $5 million.
"We are very pleased to consummate the sale of ValidSoft to Pat
Carroll and his buy-out group," said Hal Turner, executive chairman
of Elephant Talk. "In addition to significantly strengthening
Elephant Talk's balance sheet and establishing positive monthly
operating EBITDA on a pro forma basis, the closing of this
transaction represents the last substantial piece of the
three-phase restructuring program implemented in December 2015, and
provides us with a strong base from which to grow our business.
This transaction is a win for all our stakeholders. We have the
same ability to sell ValidSoft services and grow revenues
therefrom, as we did when we owned the company, through the license
we have retained. With the elimination of the cash burn of
ValidSoft from our books, we can now concentrate on our core
mobility cloud services, without distraction, and benefit from an
increased investment in our sales and marketing of our cloud
platform in new markets. This sale also better facilitates our
transformation to software and enabling software service using the
fundamental platform services that have been so well developed and
deployed by the largest and most successful mobile operators in the
world. The new world of IoT and enterprise mobility await us and
now we can focus solely on that and have the voice authentication
that we think is most valuable in the world of mobile voice
transactions," Mr. Turner concluded.
Elephant Talk and VSFT Holdings have agreed to collaborate to bring
together voice biometric security and authentication technologies
with mobility solutions for the benefit of enterprises and
consumers alike, including development and access to customers
through cooperative marketing efforts. The Identity and Access
Security market is currently a $9.16 billion market and predicted
to growing to $18.3 billion by 2018, according to MarketsandMarkets
and while the mobility markets offer tremendous potential, they
only represent a subset of all of the potential markets that
ValidSoft is able to address.
"It is time for ValidSoft to strike out on its own and address the
broad and growing security markets beyond just the mobility
markets," said Pat Carroll, CEO of ValidSoft. "This separation of
the two entities will strengthen both companies while preserving
the opportunity for the two companies to work closely together on
joint proposals. It has been a pleasure to be part of the Elephant
Talk family and I remain a significant shareholder. I look forward
to a fruitful and mutually prosperous relationship," Mr. Carroll
added.
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.
FANSTEEL INC: Hires CohnReznick LLP to Provide Valuation
--------------------------------------------------------
Fansteel, Inc., Wellman Dynamics Corporation, and Wellman Dynamics
Machinery and Assembly, Inc. ask for permission from the Hon. Anita
L. Shodeen of the U.S. Bankruptcy Court for the Southern District
of Iowa to employ CohnReznick LLP as an expert business valuation
consultant and expert witnesses, nunc pro tunc to September 13,
2016.
The Debtors require CohnReznick LLP to:
(a) assist the Debtors with a going-concern value assessment;
(b) assist the Debtors in connection with its cash collateral
motion; and
(c) perform other bankruptcy consulting services.
CohnReznick LLP will be paid at these hourly rates:
Partner $610-$815
Managers, Senior Managers,
Directors $450-$640
Other Professional Staff $300-$440
Paraprofessionals $195
CohnReznick LLP will also be reimbursed for reasonable
out-of-pocket expenses incurred.
Subject to the Court's approval and pursuant to the terms and
conditions of the CohnReznick Engagement Letter, CohnReznick will
charge the Debtors fees for its services, subject to section 328(a)
of the Bankruptcy Code, at a blended hourly rate of $450.
Kevin Clancy, partner of CohnReznick LLP, assured the Court that
the firm is a "disinterested person" as the term is defined in
Section 101(14) of the Bankruptcy Code and does not represent any
interest adverse to the Debtors and their estates.
CohnReznick LLP can be reached at:
Kevin Clancy, Esq.
COHNREZNICK LLP
333 Thornall St., 6th Floor
Edison, NJ 08837
Tel: (732) 635-3108
Fax: (732) 590-3940
E-mail: Kevin.Clancy@CohnReznick.com
About Fansteel, Inc.
Headquartered in Creston, Iowa, Fansteel operates four business
units at four locations in the USA and one in Mexico with a
workforce of more than 600 employees. Fansteel generated
approximately $87.4 million in revenue in 2015 on a consolidated
basis. WDC contributes approximately 67% of Fansteel's sales. The
rest of the sales are generated from Intercast, a division of
Fansteel, and other non-debtor subsidiaries, as disclosed in court
documents.
Fansteel, Inc., and subsidiaries Wellman Dynamics Corporation and
Wellman Dynamics Machinery & Assembly Inc., each filed a voluntary
petition under Chapter 11 of the Bankruptcy Code. The cases are
pending in the U.S. Bankruptcy Court for the Southern District of
Iowa (Bankr. S.D. Iowa proposed Lead Case No. 16-01823) before
Judge Anita L. Shodeen.
The Debtors listed total assets of $32.9 million and total debt of
$41.97 million as of the bankruptcy filing. The U.S. Trustee for
Region 12 on Sept. 23 appointed nine creditors of Fansteel Inc. to
serve on the official committee of unsecured creditors.
FANSTEEL INC: Hires Donlin Recano as Claims Noticing Agent
----------------------------------------------------------
Fansteel, Inc., Wellman Dynamics Corporation, and Wellman Dynamics
Machinery and Assembly, Inc. ask for permission from the Hon. Anita
L. Shodeen of the U.S. Bankruptcy Court for the Southern District
of Iowa to employ Donlin, Recano & Company, Inc. as claims,
noticing and solicitation agent, nunc pro tunc to September 13,
2016.
The Debtors require Donlin Recano to:
(a) prepare and serve required notices and documents in the
chapter 11 cases in accordance with the Bankruptcy Code and
the Federal Rules of Bankruptcy Procedure in the form and
manner directed by the Debtors;
(b) maintain (i) a list of all potential creditors, equity
holders and other parties-in-interest; and (ii) a "core"
mailing list consisting of all parties described in
Bankruptcy Rules 2002(i), (j) and (k) and those
parties that have filed a notice of appearance pursuant to
Bankruptcy Rule 9010; and update said lists and make them
available upon request by a party-in-interest;
(c) for all notices, motions, orders or other pleadings or
documents served, prepare and file or caused to be filed
with the Clerk an affidavit or certificate of service
within 7 business days of service which includes (i) a copy
of the notice served or the docket numbers and titles of
the pleadings served, (ii) a list of persons to whom it was
mailed with their addresses, (iii) the manner of service,
and (iv) the date served;
(d) process all proofs of claim received, and check said
processing for accuracy, maintaining said copies of claims
on the unofficial claims register;
(e) maintain the unofficial claims register for each Debtor;
and specify in the Claims Registers the following
information for each claim docketed: (i) the claim
number assigned, (ii) the date received, (iii) the name and
address of the claimant and agent, if applicable, who filed
the claim, (iv) the amount asserted, (v) the asserted
classifications of the claim, (vi) the applicable Debtor,
and (vii) any disposition of the claim;
(f) record all transfers of claims on the unofficial claims
register;
(g) monitor the Court's docket for all notices of appearance,
address changes, and claims-related pleadings and orders
filed and make necessary notations on and changes to the
Unofficial Claims Register;
(h) assist in the dissemination of information to the public
and respond to requests for administrative information
regarding the case as directed by the Debtors, including
through the use of a case website;
(i) assist with, among other things, solicitation, calculation,
and tabulation of votes and distribution, as required in
furtherance of confirmation of a plan of reorganization or
liquidation;
(j) provide such other noticing, disbursing and related
administrative services as may be required from time to
time by the Debtors;
(k) provide assistance with, among other things, certain data
processing and ministerial administrative functions,
including, but not limited to, such functions related to:
(1) the Debtors' master creditor lists, and any amendments
thereto; and (2) the processing and reconciliation of
claims;
(l) 30 days prior to the close of these cases, to the extent
practicable, request that the Debtors submit to the Court a
proposed Order dismissing DRC and terminating the services
of Donlin Recano upon completion of its duties and
responsibilities and upon the closing of these cases;
Donlin Recano will be paid at these hourly rates:
Senior Bankruptcy Consultant $165
Case Manager $140
Technology/
Programming Consultant $110
Consultant/Analyst $90
Clerical $45
The professional service of Donlin Recano is capped at a blended
rate of $145.
Donlin Recano will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Roland Tomforde, chief operating officer of Donlin Recano, 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.
Donlin Recano can be reached at:
Roland Tomforde
DONLIN, RECANO & COMPANY, INC.
6201 15th Avenue
Brooklyn, NY 11219
Tel: (212) 481-1411
About Fansteel, Inc.
Headquartered in Creston, Iowa, Fansteel operates four business
units at four locations in the USA and one in Mexico with a
workforce of more than 600 employees. Fansteel generated
approximately $87.4 million in revenue in 2015 on a consolidated
basis. WDC contributes approximately 67% of Fansteel's sales. The
rest of the sales are generated from Intercast, a division of
Fansteel, and other non-debtor subsidiaries, as disclosed in court
documents.
Fansteel, Inc., and subsidiaries Wellman Dynamics Corporation and
Wellman Dynamics Machinery & Assembly Inc., each filed a voluntary
petition under Chapter 11 of the Bankruptcy Code. The cases are
pending in the U.S. Bankruptcy Court for the Southern District of
Iowa (Bankr. S.D. Iowa proposed Lead Case No. 16-01823) before
Judge Anita L. Shodeen.
The Debtors listed total assets of $32.9 million and total debt of
$41.97 million as of the bankruptcy filing.
The U.S. Trustee for Region 12 on Sept. 23, 2016, appointed nine
creditors of Fansteel Inc. to serve on the official committee of
unsecured creditors.
FIRED UP: Nov. 9 Auction, Nov. 1 Bid Deadline Set
-------------------------------------------------
Judge Tony M. Davis of the U.S. Bankruptcy Court for the Western
District of Texas authorized Fired Up, Inc., to accept the
Bluestone Holdings Group, LLC's Stalking Horse Bid subject to the
terms and conditions of the Letter of Intent and the bid procedures
and auction.
The Debtor is authorized and directed to solicit bids for the
proposed sale in accordance with these procedures, which are
approved in all respects and which the Debtor is hereby authorized
and directed to implement:
a. Notice Procedures:
i. Within 2 business days after the date of entry of the
Order ("Sale Procedures Order"), the Debtor will cause a copy of
the Order and the Bluestone Offer to be sent by first-class mail,
postage prepaid, or via e-mail to all interested persons or
entities. Within 3 business days after the entry of the Order, the
Debtor will cause a copy of the Order and the Offer to be sent to
all creditors listed on the Creditors Matrix as filed with the
Court.
ii. Bluestone will be entitled to the following Bid
Protections: if its bid is not the Winning Bid, then Bluestone will
be entitled to receive repayment of its post-petition loan to the
Debtor to the extent one has been made and cash of $150,000 if paid
on or before Nov. 15, 2016, and $225,000 if paid after said date
("Bid Protection Payment") from the sale proceeds, free of all
claims, to account for the costs of performing the due diligence
associated with being the Stalking Horse bid. Bluestone has
represented that its actual costs of due diligence exceed the Bid
Protection Payment;
iii. If any bid, including that of Bluestone, includes
assumption and assignment of an executory contract, the Debtor will
give notice within 2 business days of receipt to the other
party(ies) to the executory contract of the bidder's request for
assumption and assignment, which notice will inform that party of
the Sale Hearing and instruct that party to file any objection,
including the cure amount, not later than the close of business on
Nov. 7, 2016. Any motion to assume leases or contracts that are
part of the highest offer received must be filed no later than Nov.
3, 2016.
b. Bid Procedures:
i. Bidders: The Debtor and its professionals will seek to
identify and recognize persons or entities as qualified to bid on
the Sale Assets based on, among other things, statements of
interest and certain financial information demonstrating to the
Debtor's satisfaction such persons or entities' financial
wherewithal to consummate a purchase of the Sale Assets. Upon
identifying or learning of potential bidders, the Debtor will
provide their contact information to the Committee.
ii. Confidentiality: No such person or entity will be able
to receive non-public, confidential information about the Debtor or
the Sale Assets
unless and until such person or entity has executed and delivered
to the Debtor a confidentiality agreement ("Confidentiality
Agreement").
iii. Due Diligence: The Debtor will afford any potential
bidders such due diligence access or additional information as may
be reasonably requested by the prospective bidder and that, in
their business judgment, the Debtor and its professionals determine
to be reasonable and appropriate. The Debtor will coordinate all
reasonable requests for information and due diligence access from
bidders.
iv. Asset Purchase Agreement: The Debtor will file with the
court a proposed Asset Purchase Agreement ("APA") Bluestone 5 days
prior to the bid deadline, and the Debtor will provide a blank form
of the APA in Word format to potential bidders.
v. Bid Deadline: Bids must be submitted to be received by
no later than 12:00 p.m. (CT) on Nov. 1, 2016.
c. Bid Requirements:
i. Form and Content of Bid: Bidders must submit a signed,
written bid containing all of the terms of the proposed sale,
contingent on nothing but bankruptcy court approval, identifying
Sale Assets and the amount of the Bid.
ii. Required Supporting Materials: Bidders are encouraged to
submit their Bid with written evidence of available cash or a
commitment for financing and such other evidence of ability to
consummate the transaction as the Debtor may reasonably request.
iii. Required Good Faith Deposit: By the Bid Deadline,
bidders must deposit with the Debtor a good faith deposit in the
amount of $10,000 ("Good Faith Deposit").
iv. Qualified Bid: A bid received by the Bid Deadline that
meets the above requirements is considered a "Qualified Bid." If
Bluestone withdraws its Bid, it will receive no Bid Protection
Payment.
v. No Minimum Cash Bid: No minimum cash amount will be
required for bids submitted prior to the Bid Deadline. The Debtor
and the Committee (if one is appointed), will recommend to the
Court which bidders should be allowed to participate in the
Auction.
vi. Rejection of Bid: The Debtor will be entitled to reject
any bid, in its discretion after consultation with the Committee
(if one is appointed). Any Bid rejected pursuant will not be deemed
to be a Qualified Bid.
d. Auction Process:
i. Bid Negotiations: Upon the receipt of Qualified Bids,
the Debtor or its professionals may negotiate with one or more
bidders regarding the terms of the applicable Qualified Bids.
ii. Auction: The Auction will commence at 1:30 p.m. (CT) on
Nov. 9, 2016 at the U. S. Bankruptcy Court, Western District of
Texas, 903 San Jacinto Blvd., 3rd Floor, Courtroom 1, Austin,
Texas, in the courtroom of the Honorable Tony M. Davis, U.S.
Bankruptcy Judge, or in such other location as the Court may
direct.
iii. Qualified Participants: Unless otherwise ordered by the
Court for cause shown, only bidders that have submitted Qualified
Bids are eligible to participate in the Auction. Either the Court,
in its discretion, or the Debtor will conduct the Auction.
iv. Bidding Process and Selection of Successful Bidder: At
the commencement of the Auction, the Debtor will identify the
prevailing highest and best Qualified Bid. Subsequent bids will be
in increments of not less than $10,000 greater than that of,
initially, the highest and best Qualified Bid. During or prior to
the Auction, the Debtor, in its discretion, or the Court may
authorize different bid increments of any size or nature. Upon
completion of the Auction, the Debtor, will select the bidder
("Successful Bidder"), if any, that has submitted the bid which, in
the Debtor's reasonable judgment, represents the highest and best
offer and is in the best interest of the Debtor's estate and its
creditors ("Successful Bid").
e. Sale Hearing:
i. A hearing with respect to the remainder of the relief
sought by the Sale Motion not granted pursuant to the Order ("Sale
Hearing") will take place immediately following the conclusion of
the Auction. If no Qualified Bids are received, the Sale Hearing
will commence on Nov. 9, 2016 at 1:30 p.m. At the Sale Hearing,
the Debtor will seek the Court's entry of the Sale Order approving
and authorizing the Proposed Sale to the Successful Bidder on the
terms and conditions of the Successful Bid and approving the
assumption and assignment of any unexpired leases or executory
contracts.
ii. The Debtor will also seek to have the second highest bid
for the Sale Assets approved as the "Back-up Bid" in the event the
Successful Bidder is unable or unwilling to close.
iii. Any objections to any of the relief to be considered at
the Sale Hearing, including the assumption and assignment of
unexpired leases of executory contracts, will be filed with the
Court and served on counsel for the Debtor on or before 12:00 p.m.
on Nov. 7, 2016.
f. Return of Good Faith Deposit: The Good Faith Deposit,
together with all interest accrued thereon, if any, will be
returned to any bidder, including the Stalking Horse Bidder, whose
bid was not the Successful Bid or the Back-up Bid. The Good Faith
Deposit submitted by the Successful Bidder will be applied against
the payment of the Purchase Price, at the closing of the proposed
sale to the Successful Bidder. Likewise, upon Closing, the Back-up
Bidder's Good Faith Deposit will be returned unless the Successful
Bidder unjustifiably fails to the close the proposed sale as
authorized by the Closing Court Orders at which point the
Successful Bidder's Good Faith Deposit will be forfeited to the
Debtor as liquidated damages, and the Back-up Bidder will become
the Successful Bidder.
g. All other terms and conditions of the sale, including
approval of the Stalking Horse Bid or any other subsequent bidder,
will be subject to the terms and conditions of a separate order,
which will be submitted at or prior to the Sale Hearing.
About Fired Up, Inc.
Fired Up, Inc., the Austin, Texas-based owner and operator of the
Johnny Carino's Italian restaurant chain, sought Chapter 11
bankruptcy protection (Bankr. W.D. Tex. Case No. 14-10447) on March
27, 2014, in Austin. It estimated assets and debt of $10 million
to $50 million.
As of the bankruptcy filing, Fired Up had 2,900 employees and owned
and operated 46 company-owned stores known as Johnny Carino's
Italian in seven states (Texas, Arkansas, Colorado, Louisiana,
Idaho, Kansas and Missouri) and 61 franchised or licensed locations
in 17 states and four other countries (Bahrain, Dubai, Egypt and
Kuwait).
The Debtor disclosed $10,360,877 in assets and $36,139,375 in
liabilities.
The Debtor is represented by Barbara M. Barron, Esq. and Lynn
Saarinen, Esq. at Barron & Newburger, P.C., in Austin.
The U.S. Trustee appointed a seven-member Official Committee of
Unsecured Creditors. The Committee tapped Pachulski Stang Ziehl &
Jones LLP as its counsel, and FTI Consulting, Inc., as its
financial advisor.
FIRED UP: Property Auction by TAGeX Approved
--------------------------------------------
Judge Tony M. Davis of the U.S. Bankruptcy Court for the Western
District of Texas authorized Fired Up, Inc., to sell the personal
property located at its San Antonio-Military and Pharr locations in
an auction conducted by TAGeX.
The sale will be free and clear of liens, claims and encumbrances.
A copy of the terms and conditions and the compensation scheme of
the auction attached to the Order is available for free at:
http://bankrupt.com/misc/Fired_Up_179_Order.pdf
TAGeX is authorized to conduct the auction and receive payment
without further order of the Court pursuant to the compensation
scheme set forth.
The Debtor will segregate the proceeds from the sales pending
distribution by a further order of the Court.
The 14-day stay of Federal Rule of Bankruptcy Procedure 6004(h) is
waived.
About Fired Up, Inc.
Fired Up, Inc., the Austin, Texas-based owner and operator of the
Johnny Carino's Italian restaurant chain, sought Chapter 11
bankruptcy protection (Bankr. W.D. Tex. Case No. 14-10447) on
March
27, 2014, in Austin. It estimated assets and debt of $10 million
to $50 million.
As of the bankruptcy filing, Fired Up had 2,900 employees and owned
and operated 46 company-owned stores known as Johnny Carino's
Italian in seven states (Texas, Arkansas, Colorado, Louisiana,
Idaho, Kansas and Missouri) and 61 franchised or licensed locations
in 17 states and four other countries (Bahrain, Dubai, Egypt and
Kuwait).
The Debtor disclosed $10,360,877 in assets and $36,139,375 in
liabilities.
The Debtor is represented by Barbara M. Barron, Esq. and Lynn
Saarinen, Esq. at Barron & Newburger, P.C., in Austin.
The U.S. Trustee appointed a seven-member Official Committee of
Unsecured Creditors. The Committee tapped Pachulski Stang Ziehl &
Jones LLP as its counsel, and FTI Consulting, Inc., as its
financial advisor.
FLOORING DIRECT: Taps Scott D. Gibson as Legal Counsel
------------------------------------------------------
Flooring Direct, LLC seeks approval from the U.S. Bankruptcy Court
for the District of Arizona to hire legal counsel in connection
with its Chapter 11 case.
The Debtor proposes to hire The Law Office of Scott D. Gibson, PLLC
to give legal advice regarding its duties and to assist in the
negotiation of a plan of reorganization.
Scott D. Gibson does not hold or represent any interests adverse to
the Debtor and is "disinterested" as defined in section 101(14) of
the Bankruptcy Code, according to court filings.
The firm can be reached through:
Scott D. Gibson, Esq.
Law Office of Scott D. Gibson, PLLC
1632 N Country Club Rd
Tucson, AZ 85716-3119
Phone: (520) 784-2600
Email: ecf@sdglaw.net
Email: scott@sdglaw.net
About Flooring Direct
Flooring Direct, LLC sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. D. Ariz. Case No. 16-08584) on July 27,
2016. The petition was signed by Linda Abedian, member.
At the time of the filing, the Debtor estimated assets and
liabilities of less than $500,000.
FORT DEARBORN: Moody's Retains B3 Rating on Increase of Loan
------------------------------------------------------------
Moody's Investors Service said on Oct. 7, 2016, that Fort Dearborn
Holding Company, Inc. (B3 stable) announcement that it would
increase its first lien term loan by $25 million to $480 million
and decrease its second lien term loan by $25 million to $145
million would have no immediate impact on current ratings.
FORTERRA INC: S&P Assigns 'B' CCR & Rates $1BB Term Loan 'B+'
-------------------------------------------------------------
S&P Global Ratings said it assigned its 'B' corporate credit rating
to Forterra Inc. The rating outlook is stable.
At the same time, S&P assigned its 'B+' issue-level rating
(one-notch higher than the company's corporate rating) to
Forterra's proposed $1 billion first-lien term loan due 2023. S&P
has assigned its '2' recovery rating to the first-lien term loan,
indicating its expectation of substantial (70% to 90%; lower end of
the range) recovery for lenders in the event of a payment default.
S&P do not rate the company's proposed $300 million ABL facility.
"The stable outlook on Forterra Building Products reflects our view
that the company will remain highly leveraged, with debt-to-EBITDA
leverage of more than 5x pro forma for the transaction," said S&P
Global Ratings credit analyst Pablo Garces. "Our base case
scenario assumes the company will not undertake any further
large-scale acquisitions or dividends in 2016."
S&P could lower its rating on Forterra if liquidity deteriorates to
a level S&P viewed as less than adequate, or in the unlikely event
that leverage measures deteriorate to a level that S&P considers
weak for the rating--at or surpassing 7x over the next year. These
events could occur if the company experienced limited availability
under its ABL facility or its margins were significantly lower that
S&P projects--by at least 350 basis points--possibly as a result of
heightened competition or greater-than-expected difficulties
integrating its acquisitions.
S&P could raise its corporate credit rating on Forterra if it
successfully integrates its recent acquisitions and performs ahead
of projections over the next 12 months, lowering leverage to 4x
while maintaining a commitment from the financial sponsor that
adjusted leverage will not surpass 5x. Although the proposed IPO
is a strong indicator that Forterra's financial sponsor is intent
on lowering its ownership stake in the medium term, S&P would need
evidence that the company's sponsor is committed to a more
conservative financial policy before considering an upgrade.
FORTUNATO C. CONDORI: To Pay Unsecured Claims 1% Under Exit Plan
----------------------------------------------------------------
Fortunato C. Condori and Sara C. Condori filed with the Bankruptcy
Court for the District of Connecticut, Bridgeport Division, their
proposed Second Amended Disclosure Statement and Second Amended
Plan of Reorganization.
The Plan provides that the unsecured non priority claim of Alliance
Laundry Systems, LLC, (Proof of Claim 6), which is in Class 13,
will be paid 1% of the total amount of the allowed claim in
quarterly payments commencing on the effective date for five years.
The total amount of the Claim is $35,479. Class 13 is impaired by
the plan and is entitled to vote.
Class 14 consists of unsecured non priority claims. The claims in
this class include those creditors reflected in the Debtors'
schedules, timely and allowed proofs of claims filed with the court
and the unsecured claims of mortgagees. The total amount of the
claims in this class is $861,859. The Debtors will pay 1% of this
class of claims over five years. Payments to this class will be
made quarterly commencing on the effective date. This class is
impaired by the plan and entitled to vote.
The Debtors intend to manage and operate their income producing
investment properties post-confirmation for no consideration.
Payments under the Plan will be made from these sources: (i)
Debtors' monthly rental income generated by the Investment
Properties in the amount of $17,600.00; and (ii) Ms. Condori's
monthly income received in the amount of approximately $5,617.86,
from her employment as nurse at Greenwich Hospital.
The Debtors receive regular monthly income from two sources:
1. Monthly rental income in the amount of $17,700, from their
joint ownership, operation and management of six Investment
Properties:
PROPERTY RENTAL INCOME
a. 6 Woodland Ave. ., Port Chester, NY; $1,700
b. 472 Ellendale Ave., Port Chester , NY; $3,200
c. 1175-1177 Park Ave., Bridgeport, CT; $3,800
d. 125-129 Orchard St., Bridgeport, CT $2,400
e. 940-946 Grand St., Bridgeport, CT $3,400
f. 1220-1228 East Main St., Bridgeport, CT; $3,200
Each of the tenancies is based upon a month to month verbal
lease.
2. Ms. Condori's full-time employment at Greenwich Hospital,
as a registered nurse, where she receives $5,617 monthly net
income.
A copy of the Second Amended Disclosure Statement is available at:
http://bankrupt.com/misc/ctb13-51436-0425.pdf
Fortunato Condori and Sara Condori filed a joint Chapter 11
bankruptcy petition (Bankr. D. Conn. Case No. 13-51436) on Sept.
12, 2013. They are represented by Russell Small, Esq.
FOUR DIA: Taps Hiersche Hayward as Attorneys
--------------------------------------------
Four Dia, LLC, seeks authorization from the U.S. Bankruptcy Court
for the Northern District of Texas to employ Hiersche, Hayward,
Drakeley & Urbach, P.C., as Attorneys, nunc pro tunc the September
2, 2016 petition date.
The Debtor requires Hiersche Hayward to:
(a) advise the Debtor of its rights, powers and duties as
debtor and debtor in possession continuing to operate and manage
their business and assets;
(b) advise the Debtor concerning, and assist in the
negotiation and documentation of agreements, debt restructurings,
and related transactions;
(c) review the nature and validity of liens asserted against
the property of the Debtor and advising the Debtor concerning the
enforceability of such liens;
(d) advise the Debtor concerning the actions that they might
take to collect and to recover property for the benefit of their
estate;
(e) prepare on behalf of the Debtor all necessary and
appropriate applications, motions, pleadings, proposed orders,
notices, schedules and other documents, and reviewing all financial
and other reports to be filed in the chapter 11 case;
(f) advise the Debtor concerning, and prepare responses to,
applications, motions, pleadings, notices and other papers that may
be filed and served in the chapter 11 case;
(g) counsel the Debtor in connection with the formulation,
negotiation and promulgation of one or more plans of reorganization
and related documents;
(h) perform all other legal services for and on behalf of the
Debtor that may be necessary or appropriate in the administration
of this chapter 11 case or in the conduct of the bankruptcy case
and Debtor's business, including advising and assisting the Debtor
with respect to debt restructurings, asset dispositions, and
general business, tax, finance, real estate and litigation matters;
and,
(i) all such other legal services as may be necessary or
appropriate in connection with the bankruptcy case.
Hiersche Hayward will be paid at these hourly rates:
Partners $300.00 - $450.00
Associates or Contract Attorneys $180.00 - $280.00
Paralegals $100.00 - $175.00
Hiersche Hayward will also be reimbursed for reasonable
out-of-pocket expenses incurred.
On August 31, 2016, the Debtor paid HHDU the sum of $40,000.00
which was placed in trust and is to be applied to postpetition
charges and fees only upon motion and approval by the Court. The
Debtor has signed an engagement agreement for payment of such fees
and its manager and member, Chhanio Patidar, guaranteed the
postpetition debt. Chhanio Patidar also guaranteed the note
obligations owing to CapitalSpring SBLC, LLC. Hiersche Hayward is
not aware of the existence of any claims between Chhanio Patidar
and the Debtor.
On September 2, 2016, the Debtor paid Hiersche Hayward the
additional sum of $9,223.82. Of this amount, $7,506.82 was applied
to the prepetition fees and expenses and $1,717.00 was applied to
the chapter 11 filing fees incurred by Hiersche Hayward. Hiersche
Hayward holds no known claims against the Debtor for payment of
prepetition expenses and fees and, to the extent it does, waives
same.
Russell W. Mills, shareholder and director of Hiersche Hayward,
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.
Hiersche Hayward can be reached at:
Russell W. Mills
HIERSCHE, HAYWARD, DRAKELEY & URBACH, P.C.
15303 Dallas Parkway, Suite 700
Addison, TX 75001
Tel.: 972.701.7000
Fax: 972.701.8765
Email: rmills@hhdulaw.com
About Four Dia, LLC
Four Dia, LLC, filed a chapter 11 petition (Bankr. N.D. Tex. Case
No. 16-33459-11) on Sept. 2, 2016. The Debtor is represented by
Russell W. Mills, Esq., at Hiersche, Hayward, Drakeley & Urbach,
P.C. The case is assigned to Judge Harlin DeWayne Hale.
Four Dia was formed on October 8, 2014 as a Texas limited liability
company and continues to operate using that corporate structure. It
operates a 62-room hotel located at 5750 Sherwood Way in San
Angelo, Texas which is operated under a Wyndham Hotel Group
franchise. Four Dia employs approximately 16 persons on a full or
part-time basis.
FPMC AUSTIN: Sale of Personal Property for $1.3M Approved
---------------------------------------------------------
Judge Tony M. Davis of the U.S. Bankruptcy Court for the Western
District of Texas authorized FPMC Austin Realty Partners, LP, to
sell furniture, equipment and related personal property to St.
David's Healthcare Partnership, L.P., for $1,125,000.
The sale is free and clear of all interests.
The 14-day stay is waived and the Order is effective immediately
upon entry.
About FPMC Austin
FPMC Austin Realty Partners, LP's primary asset is a medical campus
property commonly known as the Forrest Park Medical Center Hospital
and Medical Office Building located 8.5 acres on the south side of
SH 45 North between MoPac and I-35 in Round Rock, Texas
("Property").
FPMC Austin Realty Partners filed a Chapter 11 bankruptcy petition
(Bankr. W.D. Tex. Case No. 16-10020) on Jan. 5, 2016. The petition
was signed by Mary Hatcher as manager of NRG Austin Dev. LLC, its
general partner. Judge Tony M. Davis has been assigned the case.
The Debtor estimated assets of $100 million to $500 million and
liabilities of $50 million to $100 million.
The Law Offices of Ray Battaglia, PLLC, is the Debtor's
counsel.
FRONTIER HOTELS: U.S. Trustee Unable to Appoint Committee
---------------------------------------------------------
The Office of the U.S. Trustee on Oct. 6 disclosed in a court
filing that no official committee of unsecured creditors has been
appointed in the Chapter 11 case of Frontier Hotels, Inc.
Frontier Hotels, Inc., based in Houston, Tex., filed a Chapter 11
petition (Bankr. S.D. Tex. Case No. 16-34477) on Sept. 5, 2016.
The Hon. Karen K. Brown presides over the case. James B. Jameson,
Esq., serves as bankruptcy counsel.
In its petition, the Debtor declared $6 million in total assets and
$5.13 million in total liabilities. The petition was signed by
Muddasa Khan, president.
FUNCTION(X) INC: Closes $1.3 Million APA with Perk Inc.
-------------------------------------------------------
Function(X) Inc. simultaneously entered into a securities purchase
agreement with Perk Inc. (formerly known as Perk.com, Inc.), and
closed the sale to Perk of the shares of Perk common stock,
warrants, and right to be issued additional shares of common stock
(under certain conditions) received as consideration under the
closing of the sale of the Viggle business to Perk on Feb. 8, 2016.
The Company received $1,300,000 from Perk as consideration
therefor.
About Function(x)Inc.
Function(x)Inc., formerly known as DraftDay Fantasy Sports Inc.,
offers a high quality daily fantasy sports experience directly to
consumers and to businesses desiring turnkey solutions to new
revenue streams. DraftDay Fantasy Sports Inc. is the largest
shareholder of DraftDay Gaming Group, with a 44% stake. Sportech
owns 35%. By combining and capitalizing on the well-established
operational business assets of DraftDay and Sportech, the new
DraftDay is well-positioned to become a significant player in the
explosive fantasy sports market. DraftDay has paid out over $30
million in prizes with increased player retention and brand
loyalty. DraftDay Fantasy Sports also operates MyGuy and Viggle
Football both of which offer real-time interactive participation
with professional and college football games; Wetpaint, which
offers entertainment and celebrity news; and Choose Digital, a
digital marketplace platform that allows companies to incorporate
digital content into existing rewards and loyalty programs in
support of marketing and sales initiatives.
"The Company is unlikely to generate significant revenue or
earnings in the immediate or foreseeable future. The continuation
of the Company as a going concern is dependent upon the continued
financial support from its stockholders, the ability of the Company
to obtain necessary equity or debt financing to continue
development of its business and to generate revenue. Management
intends to raise additional funds through equity and/or debt
offerings until sustainable revenues are developed. There is no
assurance such equity and/or debt offerings will be successful and
therefore there is substantial doubt about the Company's ability to
continue as a going concern within one year after the financial
statements are issued," according to the Company's quarterly report
for the period ended Dec. 31, 2015.
As of March 31, 2016, DraftDay had $32.4 million in total assets,
$48.6 million in total liabilities, $12.5 million in series C
convertible redeemable preferred stock and a $28.6 million total
stockholders' deficit.
GAMALIER GONZALEZ: Unsecureds To $22K, Plus 2% Interest Under Plan
------------------------------------------------------------------
Gamalier Gonzalez Trucking Inc. filed with the U.S. Bankruptcy
Court for the District of Puerto Rico a disclosure statement and
summary of its proposed plan of reorganization.
Class 5 - All Other General Unsecured Claims will consist of the
general unsecured claims listed in the schedules and those who
filed proof of claims. Once the Oct. 11, 2016 bar date for general
unsecured creditors has elapsed if any additional claims are filed,
and including accordingly.
As of Oct. 3, 2016, there are four general unsecured creditors who
filed its respective proof of claimholders: (1) "Centro de
Recaudaciones de Ingresos Municipales" (claim 2) with $2,448.92;
(2) Banco Popular de Puerto Rico (claim 3) with 836.39; (3) Puerto
Rico Treasury Department (Hacienda) (claim 4) with 15,719.66; and
(4) Internal Revenue Service (IRS) with $3,398.28.
The entire class will receive the amount calculated as liquidation
value under a Hypothetical Chapter 7 liquidation analysis for a
total amount of $22,026.05, plus 2.0% interest during 60 months
counting from the Effective Date. It means that the entire Class 4
will receive a monthly payment in the amount of $386.07 during 60
months counting from the Effective Date. The Debtor will
distribute this monthly payment at pro rata of each claimholders
claims.
Funding the plan will be from the collection of any account
receivable and services provided by the Debtor and any other
business that Debtor wild be engaged during the life of the Plan.
The Disclosure Statement is available at:
http://bankrupt.com/misc/prb16-04601-54.pdf
About Gamalier Gonzalez
Gamalier Gonzalez Trucking Inc. is a corporation created to operate
two business simultaneously: (1) to transport and goods delivery in
"dry load" trucks, and (2) to provide heavy equiment services like
leveling plots and ground movements.
The Debtor sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. D.P.R. Case No. 16-04601) on June 8, 2016. Jaime
Rodriguez-Perez, Esq., at Jaime Rodriguez Law Office, PSC, serves
as the Debtor's bankruptcy counsel.
GEI HOLDINGS: Hires Smart Realty as Realtor
-------------------------------------------
GEI Holdings, LLC seeks authorization from the U.S. Bankruptcy
Court for the District of New Jersey to employ Smart Realty as
realtor.
The Debtor requires Smart Realty to list and sell the Debtor's
properties in:
-- 140-142 Huntington, Terr. Newark, NJ 07112;
-- 133-137 Carolina Ave. Irvington, NJ 07111; and
-- 229 Carolina Ave, Newark.
Smart Realty will be compensated at 3% to 6% commissions.
Smart Realty is owned by Elvin Ames, the owner of GEI Holdings.
Donlin Recano can be reached at:
Elvin Ames
SMART REALTY, LLC
115-117 Renner Ave.
Newark, NJ 07112
Tel: (973) 336-9524
About GEI Holdings
GEI Holdings, LLC, sought Chapter 11 protection (Bankr. D.N.J. Case
No. 16-24991) on Aug. 4, 2016, disclosing under $1 million in both
assets and liabilities. The Debtor is represented by John F. Wise,
Esq., at Goodson Law Offices, LLC. No official committee of
unsecured creditors has been appointed in the case.
GENERAL STEEL: Sold 1.5 Million Shares to Alternative Wealth
------------------------------------------------------------
General Steel Holding, Inc., entered into a share purchase
agreement with Alternative Wealth Limited, a company limited by
shares incorporated and existing under laws of British Virgin
Islands, on Sept. 30, 2016. Pursuant to the terms of the
Agreement, General Steel sold 1,500,000 shares of its common stock
at a purchase price of USD$1.00 per share for aggregate proceeds of
USD$1,500,000. The offering of the Shares was exempt from
registration and was made in reliance upon the provisions of
Regulation S promulgated by the Securities and Exchange Commission
under the Securities Act of 1933, as amended.
There is no material relationship between the Registrant, its
officers or affiliates and AWL.
About General Steel Holdings
General Steel Holdings, Inc., headquartered in Beijing, China,
produces a variety of steel products including rebar, high-speed
wire and spiral-weld pipe. General Steel --
http://www.gshi-steel.com/-- has operations in China's Shaanxi and
Guangdong provinces, Inner Mongolia Autonomous Region and Tianjin
municipality with seven million metric tons of crude steel
production capacity under management.
Net loss attributable to the Company for the year ended Dec. 31,
2015, was $789 million as compared to $48.7 million for the same
period in 2014.
As of Dec. 31, 2015, General Steel had $35.8 million in total
assets, $78.2 million in total liabilities, and a total deficiency
of $42.4 million.
Friedman LLP, in New York, NY, issued a "going concern"
qualification on the consolidated financial statements for the year
ended Dec. 31, 2015, citing that the Company has an accumulated
deficit, has incurred continued losses from operations, and has a
working capital deficiency at Dec. 31, 2015. In addition, the
majority of the Company's operating assets and business has been
divested at year-end or in the first quarter of 2016 to related
parties. These conditions raise substantial doubt about the
Company's ability to continue as a going concern.
GENON ENERGY: Moody's Lowers CFR to Caa3, Outlook Remains Negative
------------------------------------------------------------------
Moody's Investors Service downgraded GenOn Energy, Inc.'s corporate
family rating and probability of default (PD) rating to Caa3 from
Caa2, and Caa3-PD from Caa2-PD, respectively. At the same time, we
downgraded the ratings of GenOn REMA, LLC (REMA) and GenOn
Mid-Atlantic, LLC (GenMA)'s pass-through certificates to Caa1 from
B2.
The outlook remains negative.
"The rating downgrade reflects an increasing likelihood of a GenOn
default, possibly as soon as June 2017," said Toby Shea, Vice
President -- Senior Credit Officer "A default at GenOn creates
contagion risk for REMA and GenMA, but we see good recovery values
at those entities."
RATINGS RATIONALE
GenOn's Caa3 Corporate Family Rating (CFR) largely reflects its
high debt burden relative to cash flow and the relatively high risk
of default. The default risk at GenOn is exacerbated by dividend
restrictions at its GenMA and REMA subsidiaries. These two
entities currently generate about 65% of consolidated cash flow but
only hold around 25% of the consolidated debt whereas the rest of
the company generates about 35% of the consolidated cash flow but
accounts for 75% of the consolidated debt.
Moody's estimates that GenOn averaged about $438 million of open
EBITDAR annually over the past five years (2011-2015) and had a
total adjusted debt and lease obligation of $3.6 billion ($4
billion with debt premiums) at the end of 2015. On the other hand,
GenMA and REMA combined contributed about $283 million of open
EBITDAR with $1 billion of debt and lease obligations. Without the
cash flows from its dividend-restricted entities, GenOn's debt
level is unsustainable.
A default or debt restructuring is likely over the next two years
due to two upcoming bond maturities at GenOn -- $691 million in
June 2017 and then another $650 million in October 2018. Moody's
estimates that GenOn can probably refinance its 2017 maturity with
available secured debt capacity, but that would only put off the
resolution of its untenable debt structure for another year or so
when its next bond maturity becomes due in October 2018.
In an event of a GenOn bankruptcy, Moody's cannot rule out that
GenOn may attempt to file all its subsidiaries into bankruptcy,
including REMA and GenMA. Moody's views the ring-fence type
provisions at REMA and GenMA as mostly related to dividend
restrictions, which offer little or no protection from a parent
bankruptcy. The entities do not have independent directors on the
board to vote against a bankruptcy decision. Moreover, the
arguments in favor for filing these entities have strengthened
given the deteriorating plant economics in the past few years.
REMA and GenMA's pass-through certificates are rated Caa1, which
are two notches higher than GenOn's unsecured debt ratings of Caa3.
The higher rating reflects Moody's belief that in a bankruptcy
scenario, due to the direct and indirect secured interest of the
lease structure on all of REMA and GenMA's plants, respectively,
the pass-through certificates will rank ahead of both the lease
equity and any affiliate claims from GenOn. Moreover, Moody's
estimates that the REMA and GenMA's plants are worth in excess of
their lease debt balances, valuing REMA plants at $139/kW and
GenMA, $125/kW. In comparison, the lease debt balance on REMA and
GenMA are only $99/kW and $92/kW, respectively.
GenOn's speculative liquidity rating (SGL) is 4, the weakest rating
possible on Moody's scale. With the dividend restrictions firmly
in place at REMA and GenMA, GenOn will likely generate substantial
negative free cash flows for the foreseeable future. It may have
just enough secured debt capacity to refinance its 2017 bond
maturity, but it will not have enough for the 2018 bond maturity.
GenOn's negative outlook reflects the potential for a default or a
distressed exchange as its 2017 debt maturity comes due.
The outlook could be stabilized should the company manage to
refinance its 2017 and 2018 debt maturities without going through a
distressed debt exchange. An upgrade would require a material
improvement in industry fundamentals, which is not expected at this
point. A further downgrade is possible if a default or a
distressed exchange takes place.
These rating actions were taken:
Downgrades:
Issuer: GenOn Americas Generation, LLC
Senior Unsecured Regular Bond/Debenture, Downgraded to Caa3 from
Caa2
Issuer: GenOn Energy, Inc.
Probability of Default Rating, Downgraded to Caa3-PD from Caa2-
PD
Corporate Family Rating, Downgraded to Caa3 from Caa2
Senior Unsecured Regular Bond/Debenture, Downgraded to Caa3 from
Caa2
Issuer: GenOn Escrow Corp.
Senior Unsecured Regular Bond/Debenture, Downgraded to Caa3 from
Caa2
Issuer: GenOn Mid-Atlantic, LLC
Senior Secured Pass-Through, Downgraded to Caa1 from B2
Issuer: GenOn REMA, LLC
Senior Secured Pass-Through, Downgraded to Caa1 from B2
Outlook Actions:
Issuer: GenOn Americas Generation, LLC
Outlook, Remains Negative
Issuer: GenOn Energy, Inc.
Outlook, Remains Negative
Issuer: GenOn Escrow Corp.
Outlook, None
Issuer: GenOn Mid-Atlantic, LLC
Outlook, Remains Negative
Issuer: GenOn REMA, LLC
Outlook, Remains Negative
Affirmations:
Issuer: GenOn Energy, Inc.
Speculative Grade Liquidity Rating, Affirmed SGL-4
The principal methodology used in these ratings was Unregulated
Utilities and Unregulated Power Companies published in October
2014.
Headquartered in Houston, Texas, GenOn Energy, Inc. is an
unregulated merchant power subsidiary of NRG Energy, Inc.
GFD CONSTRUCTION: Hires Akbar Law as Attorney
---------------------------------------------
GFD Construction, Inc. seeks authorization from the U.S. Bankruptcy
Court for the Northern District of Florida to employ Brandi Thomas
of Akbar Law Firm as attorney to assist in the prosecution of the
Debtor's bankruptcy petition, nunc pro tunc to February 1, 2016.
Ms. Thomas will be compensated at $295 per hour for her services.
Akbar Law will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Ms. Thomas 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.
Akbar Law can be reached at:
Brandi Thomas
AKBAR LAW FIRM, PA
P.O. Box 10143
Tallahassee, FL 32302
Tel: (850) 383-0000
Fax: (850) 561-6900
About GFD Construction
GFD Construction, Inc., sought protection under Chapter 11 of the
Bankruptcy Code in the U.S. Bankruptcy Court for the Northern
District of Florida (Pensacola) (Case No. 16-30087) on February 1,
2016. The petition was signed by Anthony J. Greene, Sr., authorized
representative.
The Debtor is represented by Brandi Thomas, Esq., at Akbar Law
Firm, PA. The case is assigned to Judge Jerry C. Oldshue Jr. The
Debtor estimated assets of $1 million to $10 million and debts of
$100,000 to $500,000.
GINGKO ROSE: Selling Los Angeles Property to MNW for $1.2M
----------------------------------------------------------
Gingko Rose Ltd. Partnership asks the U.S. Bankruptcy Court for the
Central District of California to authorize the sale of interest in
real property located at 801 N. Alvarado Los Angeles, California,
outside the ordinary course of business to MNW Berendo, LLC, for
$1,200,000, subject to overbid.
A hearing on the Motion is set for Nov. 3, 2013 at 2:00 p.m.
The property has a scheduled value of $1,200,000 and a first deed
of trust in the amount of $1,200,000. Title to the property is
held in the name of Gingko Rose Ltd. The trustee of the property
is "25 Peseta", an entity owned by David Darwish.
Prior to listing the property for sale on the market filing their
petition, in July 2014, the Debtor obtained an appraisal of the
property which indicated the value of the property was $800,000.
A Preliminary Title Report ("PTR") on the property, establishes
there are two existing liens on the property. This includes a
first deed of trust on the property, in favor of Pesetas, for
$20,000 recorded Jan. 14, 2009, and a second deed of trust recorded
on the property in favor of Pesetas, for $1,200,000 recorded Jan.
14, 2009. The PTR further states that there are four additional
involuntary liens from taxes and based on pending litigation. This
includes:
a. A lis pendens recorded Nov. 27, 2013 pertaining to Los
Angeles Superior Court case No. BC529033 entitled Jack Vaughn et
al. v. Barbara Darwish, Gingko Rose Ltd., et al., which involved a
pendency of action. The lien will be referred to herein as "Lis
Pendens". No abstract of judgment is listed in the preliminary
title report due to the bankruptcy.
b. A tax lien recorded Oct. 17, 2014 executed by the city of Los
Angeles in the amount of $629. The instrument number 2014-1099701.
c. A tax lien for property taxes recorded by the County of Los
Angeles Tax Collector in the amount of $1,122 recorded as
Instrument No. 14-0015107.
d. A tax lien for property taxes recorded by the County of Los
Angeles Tax Collector in the amount of $1,921 recorded as
Instrument No. 2014-0015108.
The Debtor has determined it is in the best interest of estate to
sell the property. The property while producing some rental income
is not in good condition and is essentially a tear down. It is in
a not very desirable location for its current use being on a busy
main street and surrounded by a low quality motel and car repair
shops. Consequently, the Debtor received several offers through
the mail from developers offering as low as $650,000.
The Debtor then put the property on the market without a broker by
listing it through the traditional channels of real estate sales.
(e.g. the California Regional Multiple Listing Service). It was
initially listed high at $1,900,000, as-is, and free from
encumbrances, however it received little attention. Overall the
Debtor had several offers come in but none were attractive. Then
the Debtor received an offer of $950,000, which was countered, to
$1,000,000. The buyer backed off and negotiations fell through.
On July 25, 2016, the Debtor received an offer from MNW Berendo or
its Assignee to purchase the property for $1,200,000. Buyer
presented a check for the deposit in the amount of $30,000 which is
being held by San Martin Escrow ("Escrow Company") in Downey. The
offer was formalized by a California Residential Purchase Agreement
and Joint Escrow Instructions ("Purchase Agreement") signed by both
Debtor and Buyer.
The Debtor countered the Buyer's offer on Aug. 28, 2016, which was
agreed to by Buyer on Aug. 29, 2016. ("Counter Offer"). In
addition to the Purchase Agreement and the Counter Offer, the
Escrow Company provided an additional set of sale instructions
entitled "Sale Escrow Instructions". The document was executed in
counterpart, therefore the Debtor and the Buyer signed two
different documents indicating their intent to be bound by the same
document.
The material terms of the Purchase Agreement are:
a. Purchase Price: $1,200,000
b. Purchased Assets: Real property located at 801 N. Alvarado
Los Angeles, California.
c. Assumed Liabilities: Buyer will assume no liabilities. All
liabilities against the Property will be paid in full from the
purchase price through escrow.
d. Deposit and Payment: Buyer has deposited $30,000 in escrow
with the Escrow Company. The balance of the funds are due at the
close of escrow.
e. Closing: Within 30 days after the Escrow Company receives a
certified copy of the order approving the sale.
f. Representation, Warranties and Covenants: "As is, where is."
The proposed sale to the Buyers pursuant to the terms of the
Purchase Agreement is for a private sale which is subject to an
overbid at auction. The sale will provide a benefit to the estate
as it will ultimately pay off at least most of the Debtor's
liabilities as to the property. The Debtor believes the purchase
price is likely the highest and best price it will be able to
obtain for the property however it is possible there may be an
overbid and the proceed is sought to assure the estate and Debtor's
creditors will receive the highest amount possible from the sale.
The Debtor has set forth procedures to follow for an overbid if any
potential overbidders should come forward to participate in the
sale. These procedures are also provided in the Notice of Motion
filed concurrently.
Material terms of the overbid procedures are:
a. Any "Overbidder" will advise the Debtor's bankruptcy counsel
of their intent to bid on the Property and the amount of the
"Overbid" which must be at least $1,225,000 (i.e., the current
sales price plus a $25,000 minimum overbid), cash, by no later than
5:00 pm (PST), on the business day that is at least two days prior
to the hearing on the Motion ("Overbid Deadline"). Together with
the amount of the Overbid, the Overbidder must submit a purchase
agreement, signed by the Overbidder, that contains a purchase price
of at least $1,225,000 and contains the other terms and conditions
that are the same as, or not less favorable to the estate than, the
terms stated in the Purchase Agreement between the Debtor and the
Buyer.
b. Any Overbidder will to San Martin Escrow: (a) a cashier's
checks made payable to "Gingko Rose Ltd. Partnership", in the
amount of at least $30,000, to serve as a "Deposit" towards the
purchase price of the property; and (b) evidence that the
Overbidder has the financial wherewithal to close the contemplated
sale. In the event of any Overbid, the $30,000 initial deposit
already tendered by the Buyer will serve as the Buyer's Deposit.
c. Subject to Court approval, the Debtor recommends that the
first overbid be in the amount of $1,225,000, cash. The Debtor
recommends that thereafter overbids will be made in minimal
increments of $2,000 such that the next highest minimum overbid at
any auction will be an amount no less than $1,227,000, cash. All
due diligence is to be completed prior to the hearing on the
Motion, as the sale is an "as is, where is" basis, with no
warranties, representations, recourse or contingencies of any kind
whatsoever.
d. The Debtor will be authorized to sell the estate's interest
in the property to the next highest and best Overbidder in the
event the Winning Bidder fails to perform ("Backup Bidder").
e. The Winning Bidder must pay the full amount of the successful
overbid to the Debtor within 10 days from the date of entry of the
Order authorizing the sale, or as otherwise set forth in the
applicable purchase agreement.
f. To the extent the Winning Bidder is unable, unwilling or
otherwise fails to consummate the Sale, that bidder's entire
Deposit will become non-refundable and forfeited to the Debtor and,
in the event of a Backup Bidder, Debtor will be authorized to
proceed with a sale to the Backup Bidder
g. Non-winning bidder's Deposit will be refunded by the Debtor,
except that the Debtor will not refund the Deposit of any Backup
Bidder until the sale to the Winning Bidder closes.
In order to complete the sale in the case promptly, the Debtor
respectfully requests that the order on this Motion be effective
immediately, notwithstanding the 14-day stay imposed by FRBP
6004(h).
The Purchaser can be reached at:
Darryl White
MNW BERENDO, LLC
4223 Glencoe Ave., Suite B121
Marina Del Rey, CA 90292
Counsel for the Debtor:
Michael R. Totaro, Esq.
TOTATO & SHANAHAN
P.O. Box 789
Pacific Palisades, CA 90272
Telephone: (310) 573-0276
Facsimile: (310) 496-1260
E-mail: ocbkatty@aol.com
Gingko Rose Ltd. sought Chapter 11 protection (Bankr. C.D. Cal.
Case No. 14-13456) on July 18, 2014. Judge Victoria S. Kaufman is
assigned to the case. The Debtor estimated assets and liabilities
in the range of $1 million to $10 million. The Debtor tapped Alan
W Forsley, Esq. at Fredman Lieberman LLP as counsel. The petition
was signed by David Darwish, managing member, Logerm LLC, managing
partner of Gingko Rose.
GLOBAL HEALTHCARE: Files Copy of Revised Investor Presentation
--------------------------------------------------------------
Global Healthcare REIT, Inc., has revised its investor presentation
for September 2016, a copy of which is available for free at:
https://is.gd/YAhUvv
About Global Healthcare REIT, Inc.
Global Healthcare REIT, Inc., operates as a real estate investment
trust (REIT) for the purpose of investing in real estate and other
assets related to the healthcare industry. The Company acquires,
develops, leases, manages and disposes of healthcare real estate,
and provides financing to healthcare providers.
As of June 30, 2016, Global Healthcare had $39.08 million in total
assets, $35.05 million in total liabilities and $4.02 million in
total equity.
Global Healthcare reported a net loss attributable to common
stockholders of $3.36 million for the year ended Dec. 31, 2015,
compared to net income attributable to common stockholders of $1.31
million for the year ended Dec. 31, 2014.
GOLFSMITH INTERNATIONAL: Hires Jefferies as Investment Banker
-------------------------------------------------------------
Golfsmith International Holdings, Inc., et al., seek authorization
from the U.S. Bankruptcy Court for the District of Delaware to
employ Jefferies LLC as investment banker, nunc pro tunc to the
September 14, 2016 petition date.
The Debtors require Jefferies to:
(a) provide financial advice and assistance in connection with
a possible sale, disposition, or other business transaction
or series of transactions involving all, or a material
portion of, the equity or assets of the Company Group,
whether directly or indirectly and through any form of
transaction, and whether under Canada's Companies'
Creditors Arrangement Act or these chapter 11 cases;
(b) take on primary responsibility for the implementation of,
and overseeing, a sales process with respect to the Company
Group's assets;
(c) provide advice and assistance to the Company in connection
with analyzing, structuring, negotiating, and effecting a
restructuring of all, or substantially all, of the Company
Group's second lien notes and ABL/credit facility;
(d) become familiar with, to the extent Jefferies deems
appropriate acting reasonably, and analyzing, the business,
operations, properties, financial condition, and prospects
of the Company Group;
(e) assist and advise the Company Group in implementing a
Restructuring;
(f) assist and advise the Company Group in evaluating and
analyzing a Restructuring, including the value of the
securities or debt instruments, if any, that may be issued
in such restructuring; and
(g) render other financial advisory and investment banking
services as may, from time to time, be agreed by the
Company and Jefferies.
Jefferies and the Debtors have agreed on the following terms of
compensation and expense reimbursement (the "Fee and
Expense Structure"):
-- Monthly Fee. A monthly fee equal to $125,000 payable on the
6th day of each month. 50% of any Monthly Fees actually paid
to and retained by Jefferies, in excess of $375,000, will be
credited once against the payment of any fee payable to
Jefferies on account of a Restructuring or an M&A
Transaction under the Engagement Letter.
-- Transaction Fee. Upon the consummation of any Restructuring
or an M&A Transaction, a fee equal to $2,125,0001. For the
avoidance of doubt, Jefferies shall be due a Transaction Fee
upon the first to occur of a Restructuring or an M&A
Transaction, but shall not be due two fees in the event both
an M&A Transaction and a Restructuring occur.
Jefferies will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Robert J. White, managing director of Jefferies, assured the Court
that the firm is a "disinterested person" as the term is defined in
Section 101(14) of the Bankruptcy Code and does not represent any
interest adverse to the Debtors and their estates.
The Bankruptcy Court will hold a hearing on the application on
October 13, 2016, at 2:30 a.m. Objections were due October 5,
2016.
Jefferies can be reached at:
Robert J. White
JEFFERIES LLC
520 Madison Avenue, 10th Floor
New York, NY 10022
Tel: (212) 284-2300
About Golfsmith International
Headquartered in Austin, Texas, Golfsmith International Holdings,
Inc., the parent company of Golfsmith International, Inc., is a
holding company. The Company is a specialty retailer of golf and
tennis equipment, apparel, footwear and accessories. The Company
operates as an integrated multi-channel retailer, providing its
customers the convenience of shopping in the retail stores across
United States, through its Internet site,
http://www.golfsmith.com/,and from its catalogs. The Company
offers a product selection that features national brands, pre-owned
clubs and its branded products. It offers a number of customer
services and customer care initiatives, including its club trade-in
program, 30-day playability guarantee, 115% low-price guarantee,
its credit card, in-store golf lessons, and SmartFit, its
club-fitting program. As of January 1, 2011, the Company operated
75 stores in 21 states and 33 markets.
Golfsmith International Holdings, Inc., and its 12 debtor
affiliates filed Chapter 11 petitions (Bankr. D. Del. Case No.
16-12033) on Sept. 14, 2016, and are represented by Mark D.
Collins, Esq., John H. Knight, Esq., Zachary I. Shapiro, Esq., and
Brett M. Haywood, Esq., at Richards, Layton & Finger, P.A., in
Wilmington, Delaware; and Michael F. Walsh, Esq., David N.
Griffiths, Esq., and Charles M. Persons, Esq., at Weil, Gotshal &
Manges LLP, in New York.
The Debtors' financial advisor is Alvarez & Marsal North America,
LLC. The Debtors' investment banker is Jefferies LLC. The Debtors'
claims, noticing and solicitation agen t is Prime Clerk LLC.
At the time of filing, the Debtor had $100 million to $500 million
in estimated assets and $100 million to $500 million in estimated
liabilities.
Andrew Vara, acting U.S. trustee for Region 3, on Sept. 23
appointed seven creditors to serve on the official committee of
unsecured creditors.
GOLFSMITH INTERNATIONAL: Hires Richards Layton as Co-counsel
------------------------------------------------------------
Golfsmith International Holdings, Inc., et al., seek authorization
from the U.S. Bankruptcy Court for the District of Delaware to
employ Richards, Layton & Finger, P.A. as co-counsel, nunc pro tunc
to the September 14, 2016 petition date.
The Debtors require Richards Layton to:
(a) advise the Debtors of their rights, powers and duties as
debtors and debtors in possession under chapter 11 of the
Bankruptcy Code;
(b) take action to protect and preserve the Debtors' estates,
including the prosecution of actions on the Debtors'
behalf, the defense of actions commenced against the
Debtors in these chapter 11 cases, the negotiation of
disputes in which the Debtors are involved and the
preparation of objections to claims filed against the
Debtors;
(c) assist in preparing on behalf of the Debtors all motions,
applications, answers, orders, reports and other papers in
connection with the administration of the Debtors' estates;
(d) prosecute on behalf of the Debtors any chapter 11 plan that
may be proposed by the Debtors and seeking approval of all
transactions contemplated therein and in any amendments
thereto; and
(e) perform other necessary or desirable legal services in
connection with these chapter 11 cases.
Richards Layton will be paid at these hourly rates:
Mark D. Collins $850
John H. Knight $750
Zachary I. Shapiro $535
Brett M. Haywood $295
M. Lynzy McGee $240
Directors $565-$925
Counsel $495-$550
Associates $295-$510
Paraprofessionals $240
Richards Layton will also be reimbursed for reasonable
out-of-pocket expenses incurred.
Prior to the Petition Date, the Debtors paid Richards Layton a
total retainer of $222,321 to serve as a retainer and to cover fees
and expenses actually incurred, as well as anticipated to occur,
prior to the commencement of the chapter 11 cases.
Mark D. Collins, director of Richards Layton, 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.
In accordance with Appendix B-Guidelines for Reviewing Applications
for Compensation and Reimbursement of Expenses Filed under 11
U.S.C. Sec. 330 for Attorneys in Larger Chapter 11 Cases, the
following is provided in response to the request for additional
information:
-- Richards Layton did not agree to any variations from, or
alternatives to, its standard or customary billing
arrangements for this engagement;
-- None of Richards Layton's professionals included in this
engagement have varied their rate based on the geographic
location for these chapter 11 cases;
-- Richards Layton has represented the Debtors since July
2016. Other than the periodic adjustments described above,
the billing rates and material financial terms of Richards
Layton's engagement have not changed post-petition from the
prepetition arrangement; and
-- Richards Layton, in conjunction with the Debtors and Weil
Gotshal, is developing a prospective budget and staffing
plan for these chapter 11 cases.
The Bankruptcy Court will hold a hearing on the application on
October 13, 2016, at 2:30 a.m. Objections were due October 5,
2016.
Richards Layton can be reached at:
Mark D. Collins, Esq.
John H. Knight, Esq.
Zachary I. Shapiro, Esq.
Andrew M. Dean, Esq.
Brett M. Haywood, Esq.
RICHARDS, LAYTON & FINGER, P.A.
One Rodney Square
920 North King Street
Wilmington, DE 19801
Tel: (302) 651-7700
Fax: (302) 651-7701
About Golfsmith International
Headquartered in Austin, Texas, Golfsmith International Holdings,
Inc., the parent company of Golfsmith International, Inc., is a
holding company. The Company is a specialty retailer of golf and
tennis equipment, apparel, footwear and accessories. The Company
operates as an integrated multi-channel retailer, providing its
customers the convenience of shopping in the retail stores across
United States, through its Internet site,
http://www.golfsmith.com/,and from its catalogs. The Company
offers a product selection that features national brands, pre-owned
clubs and its branded products. It offers a number of customer
services and customer care initiatives, including its club trade-in
program, 30-day playability guarantee, 115% low-price guarantee,
its credit card, in-store golf lessons, and SmartFit, its
club-fitting program. As of January 1, 2011, the Company operated
75 stores in 21 states and 33 markets.
Golfsmith International Holdings, Inc., and its 12 debtor
affiliates filed Chapter 11 petitions (Bankr. D. Del. Case No.
16-12033) on Sept. 14, 2016, and are represented by Mark D.
Collins, Esq., John H. Knight, Esq., Zachary I. Shapiro, Esq., and
Brett M. Haywood, Esq., at Richards, Layton & Finger, P.A., in
Wilmington, Delaware; and Michael F. Walsh, Esq., David N.
Griffiths, Esq., and Charles M. Persons, Esq., at Weil, Gotshal &
Manges LLP, in New York.
The Debtors' financial advisor is Alvarez & Marsal North America,
LLC. The Debtors' investment banker is Jefferies LLC. The Debtors'
claims, noticing and solicitation agen t is Prime Clerk LLC.
At the time of filing, the Debtor had $100 million to $500 million
in estimated assets and $100 million to $500 million in estimated
liabilities.
Andrew Vara, acting U.S. trustee for Region 3, on Sept. 23
appointed seven creditors to serve on the official committee of
unsecured creditors.
GROVE PLAZA PARTNERS: Wants to Continue Using Cash Collateral
-------------------------------------------------------------
Grove Plaza Partners, LLC, asks the U.S. Bankruptcy Court for the
Northern District of California for authorization to use cash
collateral.
The Court previously authorized the use of cash collateral by
interim and final orders entered on June 10, 2017 and June 27,
2016, respectively.
The Debtor relates that the final order includes no termination
date, and continues to authorize the Debtor to use cash collateral.
The Debtor further relates that the Budget attached to the final
order runs through the end of September 2016, and that it is asking
for authority to continue using cash collateral out of an abundance
of caution. The Debtor adds that since Oct. 1, 2016, it has been
impounding and segregating cash collateral.
The Debtor requests that it be given interim authority to use cash
collateral in the ordinary course of business, in accordance with
its Budget for the months of October 2016 through December 2016,
which provides for total expenses in the amount of $ 193,126.
The Debtor owns seven of the 13 parcels of real property comprising
the Grove Plaza shopping center located at 1151-1161 Walnut Street
and 2404-2540 S. Grove Avenue, Ontario, Canada.
The Debtor contends that the entities which hold liens against the
Debtor's real and personal property are:
(1) San Bernardino Tax Collector, with an estimated claim
amount of $193,322;
(2) Cantor Group II, LLC, with an estimated claim amount of
$12,608,096;
(3) West Coast Construction (JG Construction), with an
estimated claim amount of $87,264;
(4) Amor Architectural Corporation, with an estimated claim
amount of $14,128; and
(5) Universal Site Services, Inc., with an estimated claim
amount of $8,127.
The Debtor says that is needs to use cash collateral to preserve
the value of its Property, and pay the expenses of operating the
Property, including cleaning, repairs, upkeep, maintenance,
insurance and taxes. The Debtor further says that without the
ability to use cash collateral to pay ordinary business expenses,
the Debtor will shut down and the Property.
The Debtor proposes to grant Cantor Group with a replacement lien
against postpetition cash collateral with the same nature, extent,
priority and validity as its prepetition lien.
A full-text copy of the Debtor's Motion, dated Oct. 7, 2016, is
available at
http://bankrupt.com/misc/GrovePlazaPartners2016_1630531_102.pdf
A full-text copy of the Debtor's proposed Budget, dated Oct. 7,
2016, is available at
http://bankrupt.com/misc/GrovePlazaPartners2016_1630531_102_3.pdf
About Grove Plaza Partners
Headquartered in Redwood Shores, Cal., Grove Plaza Partners, LLC,
filed for Chapter 11 bankruptcy protection (Bankr. N.D. Cal. Case
No. 16-30531) on May 13, 2016, estimating its assets and
liabilities at between $10 million and $50 million. The petition
was signed by George A. Arce, Jr., manager.
Reno F.R. Fernandez, Esq., at MacDonald Fernandez LLP, serves as
the Debtor's bankruptcy counsel. The case is assigned to Judge
Dennis Montali.
GROWER'S ORGANIC: Second Amended Disclosure Statement Filed
-----------------------------------------------------------
Grower's Organic, LLC, filed with the U.S. Bankruptcy Court for the
District of Colorado a second amended disclosure statement to
accompany its amended Chapter 11 plan of reorganization dated July
1, 2016.
The Debtor states that the Plan represents the best alternative for
providing the maximum value for creditors. The Plan, according to
the Debtor, provides creditors with a distribution on their Claims
in an amount greater than any other potential known option
available to the Debtor through a refinancing agreement with an
entity known as CapConnect Funding Group, LLC, or an alternative
lender.
Under the Second Amended Disclosure Statement, holders of allowed
claims held by unsecured creditors (Class 5) are slated to receive
20% of their allowed claims in semi-annual distributions over five
years, beginning six months after the effective date and continuing
every six months thereafter.
If Class 5 votes to reject the Plan, Class 5 will have the Option
to exchange their claim for new membership interests in the
reorganized Debtor.
The estimated value of the Debtor's assets as of the Petition Date
is $1,805,433.
The Second Amended Disclosure Statement says the unsecured claims
against th eDebtor's estate within Class 5 total $1,066,875. Class
5 Claims of statutory insiders are approximately $426,353. After
the Debtor obtains an agreement from the statutory insiders, the
Debtor will be paying 20% of $640,522 over a five-year period. The
total amount distributed over five years will be approximately
$128,104. The semi-annual payments will be approximately $12,810.
Meanwhile, holders of allowed claims held by creditors under the
Perishable Agricultural Commodities Act will be paid in full on the
Plan effective date. Prepetition claims of creditors arising under
the PACA total $916,961, according to a final report filed in the
case.
A full-text copy of the Second Amended Disclosure Statement is
available at:
http://bankrupt.com/misc/cob15-19683-0203.pdf
About Grower's Organic
Grower's Organic, LLC filed a Chapter 11 bankruptcy petition
(Bankr. D.Co. Case No. 15-19683) on August 28, 2015. The Debtor
owns and operate a wholesale organic food distributor in Denver,
Colorado.
The Hon. Elizabeth E. Brown presides over the case. Lee M.
Kutner,
Esq., at Kutner Brinen Garber, P.C., serves as counsel to 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 Brian Freeman, managing member.
GROWER'S ORGANIC: Terms of CapConnect's $1.35M Financing Offer
--------------------------------------------------------------
Grower's Organic, LLC, on Oct. 4, 2016, filed with the U.S.
Bankruptcy Court for the District of Colorado a second amended
disclosure statement to accompany its amended Chapter 11 plan of
reorganization dated July 1, 2016.
According to the Second Amended Disclosure Statement, Brian
Freeman, the Debtor's Owner, reached out to CapConnect Funding
Group, LLC, for a Bridge Financing Credit Facility; and in a Sept.
20-dated response letter, CapConnect outlined the terms of a
relationship contingent upon satisfactory completion of due
diligence, collateral verification, credit approval, and the
execution of CCFG's closing documents.
The proposal letter from CapConnect indicates the firm may offer to
commit a loan of up to $1,350,000 on these terms:
Purpose of Loan: Proceeds from the loan will be used
exclusively to retire obligations owed by Grower's to secured
creditors under the terms of its bankruptcy reorganization. CCFG
will make all payments directly to creditors on the instructions of
the bankruptcy administrator when fulfillment of payments will
result in a full and final release of Grower's from administrative
oversight.
Term: 12 months
Interest Rate: Interest on outstanding balance will accrue at
a daily non-compounding rate of 0.0685% Interest will be paid
monthly, beginning on the last day of the month in which the date
of this Note falls, and continuing thereafter on a monthly basis.
Interest shall be paid within five days of the end of each month.
Collateral: Loan will be secured by a first security interest
in all assets of Grower's Organic LLC.
The Personal Guarantee of Guaranty: Brian Freeman and a
Validity Guarantee from the Chief Financial Officer and the Chief
Accountant.
Due Diligence Fee: A due diligence fee of $7,500 will be due
upon acceptance of these terms. This covers the cost of third-party
reports, and other legal and underwriting costs, and will be
applied against the origination fee.
Origination Fee: 2.5% of the Loan Commitment amount fully
earned at closing. This covers cost of underwriting associated with
this loan.
Warrant Coverage: Growers Organic will provide CCFG with a
warrant to purchase up to 2.5% of it's fully diluted equity at a
price of $0.01/share. In no case will the total cost to CCFG for
exercise of the warrant exceed $1,000.
Early Exit Fee: If the Borrower prior to the 4-month
anniversary date terminates the Agreement, the borrower will pay a
one-time fee of $65,000.
Other Conditions to Closing:
-- A Financial Performance Covenant will be established where
Growers will provide monthly financial projections for the 12 month
period commencing September 1, 2016.
-- If Growers monthly actual results show a shortfall in
EBITDA of 10% or more from projections in any consecutive 2-month
period, the daily rate will increase to 0.0725% in the month
following the shortfall. If Growers results show a shortfall in
EBITDA of 10% or more in any consecutive 3 month period, CCFG
reserves the right, at its sole discretion, to demand immediate
payment of any remaining loan principal.
-- Grower's commits to undertake an immediate equity raise in
the minimum amount of $500,000 in the form of a Convertible Note,
Preferred Stock, or Common Stock. The target date for closing this
equity raise will be Jan. 31, 2017 and all proceeds from such
equity sale will be used to pay down principal on the outstanding
balance. Failure to undertake an equity raise in good faith will
be a breach of the loan agreement.
-- CCFG will have the right, at its sole option, to convert
some or all of the Loan Facility into equity at terms that
represent a 5% discount to those offered to other potential equity
investors regardless of the form of the equity instrument.
-- Growers will establish a Board of Directors no later than
October 1, 2016. The Board will consist of Brian Freeman and two
outside Directors. For the period in which this loan is in effect,
one outside Director will be subject to the approval of CCFG, and
CCFG will have the right to board observer status until the Loan
Facility is repaid in full.
-- Growers will purchase Key Man Insurance on Brian Freeman on
a minimum of $1,000,000 with CCFG designated as the payee for the
duration of the loan.
The Debtor states that its exit Plan represents the best
alternative for providing the maximum value for creditors. The
Plan, according to the Debtor, provides creditors with a
distribution on their Claims in an amount greater than any other
potential known option available to the Debtor through a
refinancing agreement with CapConnect or an alternative lender.
CapConnect may be reached at:
Matthew J. Eager
Managing Partner
CapConnect Funding Group,LLC
233 Mt. Airy Road, Suite 100
Basking Ridge, NJ 07920
About Grower's Organic
Grower's Organic, LLC, filed a Chapter 11 bankruptcy petition
(Bankr. D.Co. Case No. 15-19683) on Aug. 28, 2015. The Debtor
owns and operate a wholesale organic food distributor in Denver,
Colorado.
The Hon. Elizabeth E. Brown presides over the case. Lee M.
Kutner,
Esq., at Kutner Brinen Garber, P.C., is counsel to 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 Brian Freeman, managing member.
HAGERSTOWN BLOCK: Seeks to Employ Smith Elliott as Accountants
--------------------------------------------------------------
The Hagerstown Block Company and Hagerstown Concrete Products,
Inc., seek authorization from the U.S. Bankruptcy Court for the
District of Maryland to employ Smith Elliott Kearns & Company, LLC,
as accountants.
The Debtors require Smith Elliott to:
(a) render tax compliance and tax consulting services to the
Debtors;
(b) consult with the Debtors and counsel in connection with
the other business matters relating to the Debtors’ financial
activities;
(c) provide expert testimony as required;
(d) work with the accountants and other financial consultants,
if any;
(e) assist with such other tax and financial matters as the
Debtors may request from time to time; and,
(f) provide accounting advice to the Debtors as/when needed in
order to assume the continued accuracy of the Debtors' internal
accounting records.
Smith Elliott will be paid at these hourly rates:
William F. Fritts, II $325
Members $205 - $325
Staff $83 - $255
Administrative $57 - $78
Smith Elliott will also be reimbursed for the incurred actual and
necessary costs and expenses.
Prior to the filing, Smith Elliott was paid $24,755.00 for
prepetition services and expenses rendered to the Debtors for the
one year prior to the July 22, 2016 petition date. On the petition
date, Smith Elliott was not owed any money from the Debtors. Smith
Elliott has not performed any services for the Debtors since the
petition date.
William F. Fritts, II, member of Smith Elliott, 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.
Smith Elliott can be reached at:
William F. Fritts, II, CPA, CVA
SMITH ELLIOTT KEARNS & COMPANY LLC
480 N. Potomac Street
Hagerstown, MD 21740
Tel.: 301-733-5020 Phone
Fax: 301-733-1864 Fax
Email: wfritts@sek.com
About Hagerstown Block
The Hagerstown Block Company and Hagerstown Concrete Products, Inc.
filed a Chapter 11 petitions (Bankr. D. Md. Case Nos. 16-19880 and
16-19881), on July 22, 2016. The cases are assigned to Judge Thomas
J. Catliota and Judge Wendelin I. Lipp, respectively. At the time
of filing, each Debtor estimated assets and liabilities at $1
million to $10 million.
The Debtors' counsel is James A. Vidmar, Jr., Esq. at Yumkas,
Vidmar, Sweeney & Mulrenin, LLC.
The petitions were signed by Doy C. Sneckenberger, president.
A copy of The Hagerstown Block's list of 20 largest unsecured
creditors is available for free at
http://bankrupt.com/misc/mdb16-19880.pdf
HANJIN SHIPPING: Battles with Ashley Furniture Over Cargo, Damages
------------------------------------------------------------------
Tom Corrigan, writing for The Wall Street Journal, reported that
Hanjin Shipping Co. and Ashley Furniture Industries Inc. are
battling over fees related to the furniture company's cargoes.
According to the report, Ashley Furniture said it has been left on
the hook for cleaning up the logistical mess in the wake of
Hanjin's bankruptcy and is asking a U.S. judge to allow it to
withhold damages from fees it owes to Hanjin. The South Korean
shipping company, however, is refusing to release some of Ashley
Furniture's cargo until it is paid in full, the report related.
Some of Ashley Furniture's containers have been delivered or
otherwise retrieved by the company, many of which are weeks behind
schedule, the report further related. Other containers, still
stocked with goods, are floating on Hanjin ships or sitting idle on
port tarmacs waiting to be released by the shipper, the report
said.
During a hearing on Oct. 7 in Newark, N.J., lawyers for Ashley
Furniture asked Judge John Sherwood of the U.S. Bankruptcy Court to
help it recover damages of more than $1 million it said it is owed
for having to pick up containers delivered to the wrong ports, the
report said.
The Wisconsin-based furniture maker also said it has had to store
empty containers and chassis -- the wheeled trailers trucks use to
transport the containers -- that it would ordinarily return to
Hanjin but which the shipper has abandoned in bankruptcy, the
report added.
Who is ultimately responsible for those goods and containers as
well as any damages is a question the bankruptcy court will have to
answer, according to Ashley Craig, Esq. -- awcraig@Venable.com -- a
maritime lawyer with the Venable firm in Washington, D.C., WSJ
cited the lawyer as saying in court.
In court on Oct. 7, Edward Kiel, a lawyer for Hanjin, told the
judge that Ashley Furniture is attempting to "weasel out" millions
of dollars that the embattled shipping company needs to fund its
business, which is continues to operate while in bankruptcy, the
report said.
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.
HARTFORD CITY, CT: Moody's Lowers Rating on $550MM GO Debt to Ba2
-----------------------------------------------------------------
Moody's Investors Service has downgraded the City of Hartford, CT's
general obligation debt rating to Ba2 from Baa1. The par amount of
debt affected totals approximately $550 million. The outlook
remains negative. The downgrade to Ba2 reflects the challenges the
city faces in achieving structurally balanced operations, closing
its current year (fiscal 2017) budget gap and subsequent year
projected shortfalls. The city has limited operating flexibility,
exacerbated by weak and declining reserves and rising costs
(including debt service and pension payments) over the next several
years. The rating action also factors in narrowing liquidity and
expansion of the current year budget gap since our last review.
The city's options for addressing the growing revenue/expenditure
mismatch and eliminating the structural imbalance are limited with
property tax revenue constrained by an already high tax rate and
prospects for additional state aid limited by the state's own
fiscal challenges. Further expenditure reductions will prove
difficult after cuts in the current and prior fiscal years and
extended negotiations with unions. Moody's recognizes that it has
become increasingly unlikely that the city will be able to address
its financial challenges on its own and, external assistance,
either from the state or region will be needed. The city's
position as the state capital and regional economic and employment
center is a positive credit factor; however, those strengths are
offset, to some extent, by depressed wealth and income levels, and
high tax payor concentration.
Rating Outlook
The maintenance of the negative outlook reflects our expectation
that the city will remain challenged to restore and maintain fiscal
stability given the expected ramp up in expenditures including debt
service and pension costs combined with modest revenue growth
prospects. The outlook also incorporates the city's significant
reliance on state aid and the financial challenges that the state
is facing which could adversely impact the city.
Factors that Could Lead to an Upgrade
Established trend of structurally balanced operations
Growth in reserves and liquidity resulting in greater financial
flexibility
Substantial tax base growth and improvement in wealth and income
levels of residents
Factors that Could Lead to a Downgrade
Continued lack of progress in addressing the current year and
next year's budget gaps
Further weakening of liquidity
Further erosion of reserves
Overreliance on non-recurring revenue sources or one-time
measures to balance operations
Deterioration in the city's tax base or demographic profile
State level financial weakness impacting state aid to the city
Loss of top taxpayer or employer
Legal Security
The rated bonds are secured by the city's general obligation
unlimited tax pledge.
Use of Proceeds
Not applicable.
Obligor Profile
Hartford is the state's capital and has an estimated population of
125,130 (American Community Survey estimates).
Methodology
The principal methodology used in this rating was US Local
Government General Obligation Debt published in January 2014.
HEALTHSOUTH CORP: S&P Affirms 'BB-' CCR; Outlook Stable
-------------------------------------------------------
S&P Global Ratings said that it affirmed its 'BB-' corporate credit
rating on HealthSouth Corp. and revised the outlook to stable from
negative. S&P also affirmed all existing issue-level ratings on
HealthSouth's outstanding debt. The recovery ratings are
unchanged.
The outlook revision reflects S&P's assessment that HealthSouth
will be able to improve its debt leverage to about the 4.0x-range
in 2016 as a result of better-than-expected EBITDA generation and
accelerated debt repayment, despite its appetite for tuck-in
acquisitions and a continuing prioritization of shareholder
returns.
Following the successful integration of recent acquisitions
(including inpatient rehab hospital operator, Reliant Hospital
Partners in October 2015 and home-health agency provider CareSouth
in November 2015), S&P now expects revenue growth of 17% in 2016,
an improvement over our prior assumption of 13%. In addition, the
company repaid about $175 million of senior unsecured debt in 2016.
Still, considering management's appetite for debt-financed
acquisitions over the past 18 months, which demonstrates its
comfort operating with adjusted leverage above 4x, S&P believes
leverage may fluctuate again above 4.0x, despite the company's
publicly stated target leverage of 3.5x in 2017. S&P's base-case
forecast now assumes debt leverage of about 4x in 2016, improving
modestly in 2017, and a ratio of funds from operations (FFO) to
debt of about 19% and 20% for the same periods, respectively. S&P
assess financial risk as aggressive.
HealthSouth is predominantly an inpatient rehabilitation company
(about 82% of revenue) and offers home health (about 17%) and
hospice services (about 1%) as well. While recent acquisitions in
its home health and hospice segment introduce some level of
diversification, S&P still considers its business risk to be
characterized by a high level of concentration within a single line
of business. The company also has a high degree of exposure to
reimbursement risk from Medicare (which represents about 75% of
total revenues) and exposure to regulatory changes for inpatient
rehabilitation services.
These factors are partially offset by the company's scale (about
$3.7 billion of estimated revenues for in 2016) and strong
profitability (adjusted EBITDA margins of about 23%). S&P assess
the business risk profile as weak.
S&P's base-case scenario assumes these:
-- Revenue growth of about 17% in 2016 (primarily to the result
of the EHHI and Reliant acquisitions) and 4.5% in 2017 and
in subsequent periods. S&P expects low- to mid-single-digit
organic revenue growth, in line with the broader post-acute
sector, driven by modest increase in revenue per patient
discharge in its IRF segment, supplemented by a modest level
of acquisition spending and de novo openings;
-- Relatively stable margins (gross margin of about 45% and
EBITDA margin of about 24% in 2015), reflecting a strong
overall payor mix profile;
-- Capital expenditure spending of about $150 million to
$200 million annually;
-- About $150 million of annual common dividends and
distributions to consolidated affiliates; and
-- About $150 million of annual spending on acquisition and
share repurchases.
S&P views the company's leading market position within the
inpatient rehabilitation services industry, strong EBITDA margins,
and substantial generation of free cash flow as a significant
strength relative to post-acute peers, supporting S&P's 'BB-'
corporate credit rating.
The stable outlook reflects S&P's expectation that despite modest
organic revenue growth, stable operating margins, and strong free
cash flow generation, S&P expects adjusted debt leverage to
fluctuate above 4x as the company balances its priorities including
acquisitions and shareholder returns.
Downside scenario
S&P could lower the rating if adverse changes to reimbursement,
such as tighter eligibility standards for the inpatient rehab
patients, or a spike in operating costs results in a material
deterioration of EBITDA margins and cash flow generation. This
could involve margin contraction of about 500 basis points from our
base case, leading to a rise in adjusted debt leverage to
approximately 5.0x, and resulting in about $200 million of annual
discretionary cash flow (after distributions to common shareholders
and consolidated joint venture affiliates), a substantial decline
from S&P's base-case forecast in 2017.
Upside scenario
Although S&P doesn't expect to raise the rating over the next year,
it could do so if HealthSouth reduces debt leverage to about 3.5x
and S&P gained confidence that it would remain there. Such a
scenario would incorporate either a 10% increase in EBITDA
generation from S&P's base-case forecast or a $300 million
reduction in debt.
HEBREW HEALTH CARE: Can Use Cash Collateral Through Dec. 2
----------------------------------------------------------
Judge Julie A. Manning of the U.S. Bankruptcy Court for the
District of Connecticut authorized Hebrew Health Care, Inc., and
its affiliated Debtors to use cash collateral from Oct. 8, 2016
through Dec. 2, 2016.
The Debtors, Wells Fargo Bank, National Association, the United
States Department of Housing and Urban Development, U.S. Bank
National Association, as Bond Trustee, TD Bank, National
Association, and the State of Connecticut Department of Revenue
Services consented to the entry of the Court's Order.
Debtor Hebrew Home and Hospital, Inc. is indebted to Wells Fargo in
the amount of $10,797,178, and the U.S. Department of Housing and
Urban Development in the amount of $11,389,242.
The Wells Fargo prepetition indebtedness is secured by valid,
enforceable, properly perfected and unavoidable first priority
liens and security interests in all of Debtor Hebrew Home and
Hospital's real property and all leases and rents derived
therefrom, and all its personal property. The U.S. Department of
Housing and Urban Development's Prepetition Indebtedness is secured
by valid, enforceable, properly perfected and unavoidable liens and
security interests in Debtor Hebrew Home and Hospital's collateral,
subordinate only to the superpriority liens in cash, accounts
receivable, and accounts granted to the DIP Lender in connection
with the DIP Financing, and the liens and security interests of
Wells Fargo held in all of Debtor Hebrew Home and Hospital's
collateral.
The Department of Revenue Services asserted a statutory right to
set off Hebrew Home and Hospital's unpaid prepetition provider
taxes against its prepetition Medicaid receivables. The Debtors
acknowledged that unpaid prepetition provider taxes are owed by
Hebrew Home and Hospital, but disputed the Department of Revenue
Services' allegation that it has a right of set-off with respect to
the same.
Debtor Hebrew Life Choices Inc. drew $11,291,888 on the TD Bank
Letter of Credit on September 15, 2016, and drew the amounts of
$2,630,733, on Sept. 22, 2016, and $970,342 on Sept. 26, 2016.
Debtor Hebrew Life Choices is indebted to U.S. Bank, in the amount
of $14,890,000.
The U.S. Bank prepetition indebtedness is secured by valid,
enforceable properly perfected and unavoidable liens and security
interests in Debtor Hebrew Life Choices' real property and all
leases and rents derived therefrom, as well as all its personal
property.
TD Bank issued a Letter of Credit for the benefit of the U.S. Bank
prepetition indebtedness. U.S. Bank was given the right to draw
upon the TD Bank Letter of Credit in certain instances.
The Debtors told the Court that they do not have sufficient
available sources to provide working capital to operate their
businesses in the ordinary course without being allowed to use the
cash collateral. The Debtors further told the Court that their
ability to provide patient services, and to maintain their business
relationships with vendors, suppliers and employees, and to
otherwise fund their operations, are essential to their viability.
Wells Fargo and the U.S. Department of Housing and Urban
Development were granted valid valid and automatically perfected
first-priority replacement liens on and replacement security
interests in and upon Hebrew Home and Hospital's Cash Collateral to
the same extent, validity and priority as Wells Fargo and the U.S.
Department of Housing and Urban Development possessed as of the
Petition Date.
U.S. Bank and TD Bank were granted valid and automatically
perfected replacement liens on and replacement security interests
in Hebrew Life Choices' cash collateral, to the same extent,
validity and priority as they each possessed as of the Petition
Date.
Judge Manning held that the Department of Revenue Services'
asserted right to set-off against the Pre-petition Medical Payables
will attach to all Medicaid Payables due and owing to Hebrew Home
and Hospital for services provided by it after the Petition Date.
The Carve Out consists of:
(1) allowed fees and reimbursement for disbursements of
professionals retained by the Debtors in an aggregate amount for
all such Debtors' Professional Fees not to exceed $350,000;
(2) allowed fees and reimbursement for disbursements of
professionals retained by the Committee in an aggregate amount of
all such Committee’s Professional Fees not to exceed $175,000;
(3) quarterly fees pursuant to 28 U.S.C. Section 1930(a)(6)
plus interest accrued pursuant to 31 U.S.C. Section 3717, and any
fees payable to the clerk of the Bankruptcy Court; and
(4) amounts due and owing to the Debtors’ non- insider
employees for post-petition wages.
A further hearing on the Debtors' use of cash collateral is
scheduled on Nov. 30, 2016 at 10:00 a.m.
A full-text copy of the Agreed Order, dated Oct. 7, 2016, is
available at
http://bankrupt.com/misc/HebrewHealthCare2016_1621311_275.pdf
About Hebrew Health Care
Hebrew Health Care, Inc., Hebrew Life Choices, Inc., Hebrew
Community Services, Inc., and Hebrew Home and Hospital,
Incorporated, filed Chapter 11 petitions (Bankr. D. Conn. Case Nos.
16-21311, 16-21312, 16-21313, and 16-21314, respectively) on Aug.
15, 2016. The petitions were signed by Bonnie Gauthier, CEO. Their
cases are assigned to Judge Ann M. Nevins.
The Debtors are represented by Elizabeth J. Austin, Esq., at
Pullman and Comley, LLC.
At the time of the filing, Hebrew Health Care, Inc., estimated
assets at $1 million to $10 million and liabilities at $100,000 to
$500,000; Hebrew Life Choices, Inc. estimated assets at $10 million
to $50 million and liabilities at $10 million to $50 million;
Hebrew Community Services, Inc., estimated assets at $500,000 to $1
million and liabilities at $100,000 to $500,000; and Hebrew Home
and Hospital estimated assets at $1 million to $10 million and
liabilities at $10 million to $50 million.
The United States Trustee for Region 2 appointed The Connecticut
Light and Power Company, McKesson Corporation, and Morrison
Management Specialists, Inc., to serve on the Official Committee of
Unsecured Creditors.
Kroll McNamara Evans & Delehanty LLP was retained as special
counsel. Anne Cahill Kluetsch was named Patient Care Ombudsman.
The Official Committee of Unsecured Creditors retained EisnerAmper
LLP as financial advisor.
HEXION INC: Joseph Bevilaqua Named as COO
-----------------------------------------
Hexion Inc. announced that Joseph P. Bevilaqua has been named chief
operating officer of the Company effective Oct. 6, 2016. Mr.
Bevilaqua will oversee all aspects of the Company's operations for
both business divisions, including global responsibility for the
manufacturing, supply chain, commercial, and environmental, health
and safety functions. The COO appointment is part of a broader
corporate reorganization focused on streamlining and delayering
Hexion's organizational structure. In connection with the
appointment, Dale N. Plante, executive vice president and president
of the Forest Products Division, will leave the Company to pursue
other endeavors. Mr. Plante will remain with the Company as an
advisor through mid-2017 to ensure a smooth transition of
responsibilities.
Mr. Bevilaqua most recently served as executive vice president and
president of the Epoxy, Phenolic and Coating Resins Division of the
Company. Since Aug. 10, 2008, he has been responsible for the
epoxy and phenolic resins businesses and in October 2010, the
coatings business was added to his division responsibilities. Prior
to that, he was executive vice president and president of the
Phenolic and Forest Products Division, a position he held from
January 2004 to August 2008. Mr. Bevilaqua joined the Company in
April 2002 as vice president-corporate strategy and development.
Prior to joining the Company, he was the vice president and general
manager of Alcan's global plastics packaging business from February
2000 to March 2002. Prior to Alcan, Mr. Bevilaqua served in
leadership positions with companies such as General Electric,
Woodbridge Foam Corporation and Russell-Stanley Corporation. Mr.
Bevilaqua holds bachelor's degrees in economics and business
administration from the University of Tennessee at Chattanooga.
"I am pleased to name Jody to this newly created role for Hexion,"
said Craig O. Morrison, chairman, president and CEO. "Jody is
uniquely qualified to serve as COO considering his commercial,
manufacturing and operational expertise, as well as a proven track
record of driving global growth initiatives across our entire
product portfolio. The COO structure will provide a unified focus
across all of our business units, increase the overall speed of
decision making and deliver additional savings by reducing
corporate overhead costs."
Mr. Morrison added: "I would also like to thank Dale for his many
years of outstanding service to the Company. He has been a
critical part of the strong results that the Forest Products
division has delivered. He has built a tremendous leadership team
within our Forest Products Division and we wish him well in his
future endeavors."
The Company will continue to report its financial results based on
its current reportable segments: Epoxy, Phenolic and Coating Resins
and Forest Products Resins.
About Hexion Inc.
Hexion Inc., formerly known as Momentive Specialty Chemicals, Inc.,
headquartered in Columbus, Ohio, is a producer of thermoset resins
(epoxy, formaldehyde and acrylic). The company is also a supplier
of specialty resins for inks and specialty coatings sold to a
diverse customer base as well as a producer of commodities such as
formaldehyde, bisphenol A, epichlorohydrin, versatic acid and
related derivatives.
Hexion reported a net loss attributable to the Company of $40
million on $4.14 billion of net sales for the year ended Dec. 31,
2015, compared to a net loss attributable to the Company of $223
million on $5.13 billion of net sales for the year ended Dec. 31,
2014.
* * *
The TCR reported on Oct. 3, 2014, that Standard & Poor's Ratings
Services lowered its corporate credit rating on Momentive
Specialty by one notch to 'CCC+' from 'B-'. "The downgrade
follows MSC's significant use of cash in the first half of 2014 and
our expectation that lackluster cash flow from operations and
elevated capital spending will cause free operating cash flow to be
significantly negative in 2014 and 2015," said Standard & Poor's
credit analyst Cynthia Werneth.
As reported by the TCR on Dec. 15, 2014, Moody's Investors Service
lowered the Corporate Family Rating of Momentive to 'Caa1' from
'B3'. "Due to elevated leverage, heavy capital spending on new
capacity in 2014 and 2015, and the lack of meaningful improvement
in financial performance, Moody's have lowered Momentive
Specialty's rating," stated John Rogers, senior vice president at
Moody's.
ICRCO INC: Hires Beall & Burkhardt as Counsel
---------------------------------------------
iCRco, Inc. seeks for permission from the Hon Peter H. Carroll of
the U.S. Bankruptcy Court for the Central District of California to
employ Beall & Burkhardt, APC as counsel, effective September 2,
2016.
The Debtor requires Beall & Burkhardt to:
(a) advise the Debtor generally concerning the rights, duties,
and obligations of a debtor-in-possession under the
Bankruptcy Code, the Federal Rules of the Bankruptcy
Procedure, and the requirements of the United States
Trustee;
(b) meet with the Debtor concerning the initial filing
requirements of a Chapter 11 case;
(c) represent the Debtor in all hearings and meetings before
the Bankruptcy Court;
(d) prosecute and defend appropriate adversary proceedings in
the Bankruptcy Court;
(e) prosecute any claim objections;
(f) prepare and prosecute a Disclosure Statement and Plan of
Reorganization; and
(g) other matters that normally arise in the conduct of the
Chapter 11 case.
Beall & Burkhardt will be paid at these hourly rates:
William C. Beall $400
Eric W. Burkhardt $400
Carissa Horowitz $300
Beall & Burkhardt will also be reimbursed for reasonable
out-of-pocket expenses incurred.
A retainer of $50,000 has been paid for this case.
William C. Beall, partner of Beall & Burkhardt, 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.
Beall & Burkhardt can be reached at:
William C. Beall, Esq.
Eric W. Burkhardt, Esq.
BEALL & BURKHARDT, APC
114 State Street
La Arcada Building, Suite 200
Santa Barbara, CA 93101
Tel: (805) 966-6774
Fax: (805) 963-5988
About iCRco, Inc.
icRco, Inc., filed a chapter 11 petition (Bankr. C.D. Cal. Case No.
16-11742) on Sept. 21, 2016. The petition was signed by Stephen
Neushul, CEO. The Debtor is represented by William C. Beall, Esq.,
at Beall and Burkhardt, APC. The case is assigned to Judge Peter
Carroll. The Debtor disclosed total assets at $4.54 million and
total liabilities at $5.35 million.
ICRCO INC: Hires Brigante Cameron as Accountant
-----------------------------------------------
iCRco, Inc. seeks permission from the Hon Peter H. Carroll of the
U.S. Bankruptcy Court for the Central District of California to
employ Brigante, Cameron, Watters & Strong as accountant.
The Debtor requires Brigante Cameron to prepare tax returns and
other accounting services.
Brigante Cameron will be paid between $85 to $462 per hour,
depending on the staff member assigned and the complexity of the
work being performed.
Brigante Cameron will also be reimbursed for reasonable
out-of-pocket expenses incurred.
Mark C. Tackmann, principal of Brigante Cameron, 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.
Brigante Cameron can be reached at:
Mark C. Tackman
BRIGANTE, CAMERON, WATTERS & STRONG
19312 Evening Hill Drive
Huntington Beach, CA 92648
Tel: (714) 845-6141
E-mail: MTackmann@aol.com
About iCRco, Inc.
icRco, Inc., filed a chapter 11 petition (Bankr. C.D. Cal. Case No.
16-11742) on Sept. 21, 2016. The petition was signed by Stephen
Neushul, CEO. The Debtor is represented by William C. Beall, Esq.,
at Beall and Burkhardt, APC. The case is assigned to Judge Peter
Carroll. The Debtor disclosed total assets at $4.54 million and
total liabilities at $5.35 million.
ILLINOIS POWER: Moody's Lowers CFR to Ca, Outlook Negative
----------------------------------------------------------
Moody's Investors Service downgraded the corporate family rating,
Probability of Default rating (PD) and senior unsecured rating of
Illinois Power Generating Company (Genco) to Ca from Caa3. The
speculative grade liquidity rating is affirmed at SGL-4. The
rating outlook is negative.
Downgrades:
Issuer: Illinois Power Generating Company
Probability of Default Rating, Downgraded to Ca-PD from Caa3-PD
Corporate Family Rating, Downgraded to Ca from Caa3
Senior Unsecured Regular Bond/Debenture, Downgraded to Ca (LGD4)
from Caa3 (LGD4)
Outlook Actions:
Issuer: Illinois Power Generating Company
Outlook, Remains Negative
Affirmations:
Issuer: Illinois Power Generating Company
Speculative Grade Liquidity Rating, Affirmed SGL-4
RATINGS RATIONALE
The downgrade is prompted by Genco parent company Dynegy Inc.'s
(Dynegy, B2 CFR stable) announcement that it had reached a
tentative agreement with some Genco bondholders to restructure
Genco's debt. "The proposed exchange offer would result in Genco
lenders receiving about 40 cents on the dollar, which we view as a
distressed exchange", said Swami Venkataraman, Senior Vice
President. "If the exchange is successful, the substantially lower
debt burden would allow the 4.2 GW generating portfolio at Genco
and affiliate Illinois Power Resources Generating (unrated) to be
cash flow positive", he added.
As per a Form 8K filed by Dynegy on Oct. 3, 2016, Dynegy reached an
agreement with Genco and an ad hoc group of Genco bondholders to
restructure Genco's $825 million of unsecured debt. Under the
proposed restructuring, lenders would receive $210 million in new
7-year Dynegy unsecured notes, $139 million in cash, and 10 million
Dynegy warrants with a 7-year tenor and strike price of $35 per
share. Given that Dynegy stock currently trades at approximately
$13/share, and considering the distressed state of the merchant
power industry, we do not believe the warrants are likely to be
worth much, which implies lenders will receive approximately 40
cents on the dollar if the restructuring is executed.
Dynegy and Genco have launched a simultaneous solicitation of Genco
noteholders. Should the offer obtain the consent of over 97% of
these lenders, there will simply be an out of court restructuring.
If more than 67% but less than 97% agree, Genco will likely go
through a prepackaged chapter 11 bankruptcy filing.
Rating Outlook
Genco's outlook is negative, reflecting the likelihood of a lower
rating if the expected distressed exchange occurs.
What Could Change the Rating - Up
Genco's rating is unlikely to be upgraded over the near-term given
the pending distressed exchange.
What Could Change the Rating - Down
Genco's rating is likely to be downgraded further if and when the
exchange offer occurs. Should the exchange offer fail to obtain
two-thirds approval, Moody's thinks an eventual bankruptcy filing
is likely at or prior to the 2018 debt maturity, which would also
result in a lower rating.
The principal methodology used in these ratings was Unregulated
Utilities and Unregulated Power Companies published in October
2014.
IMPLANT SCIENCES: L-3 to Acquire Assets for $117.5 Million
----------------------------------------------------------
L-3 Communications on Oct. 10, 2016, disclosed that it has entered
into an asset purchase agreement (APA) to acquire certain assets of
Implant Sciences Corporation (Implant) for $117.5 million in cash,
plus the assumption of specified liabilities. L-3 intends to
finance the asset purchase using its existing cash on hand.
Implant has recently entered into Chapter 11 Bankruptcy protection,
and the consummation of the APA will be subject to approval of the
U.S. Bankruptcy Court. Following a successful acquisition, the
assets will be integrated into L-3's Security & Detection Systems
division within its Electronic Systems business segment.
Pursuant to the terms of the APA, L-3 will acquire the explosives
trace detection (ETD) business of Implant. The company's ETD
products have received approvals and certifications from several
international regulatory agencies, including the TSA in the U.S.,
ECAC in Europe and the Ministry of Public Safety in China. In
September 2016, the TSA placed a delivery order for 1,353 of the
QS-B220 systems and related supplies.
"L-3's leadership across a broad scope of security and detection
technologies will be enhanced by these assets, supporting our
strategy to provide our customers with scalable, integrated
solutions that meet the evolving global demand," said Michael T.
Strianese, L-3's Chairman and Chief Executive Officer.
Headquartered in New York City, L-3 employs approximately 38,000
people worldwide and is a provider of a broad range of
communication and electronic systems and products used on military
and commercial platforms. L-3 is also a prime contractor in
aerospace systems. The company reported 2015 sales of $10.5
billion.
Based in Wilmington, Massachusetts, Implant filed for bankruptcy
protection pursuant to Chapter 11 of the U.S. Bankruptcy Code on
October 10, 2016. L-3 will be, subject to U.S. Bankruptcy Court
approval, entitled to a breakup fee and expense reimbursement if it
does not prevail as the successful bidder at any subsequent auction
in accordance with the terms of the APA. L-3's role as purchaser
and the sale itself are subject to approval by the U.S. Bankruptcy
Court.
About Implant Sciences
Implant Sciences Corporation (OBB: IMSC.OB) --
http://www.implantsciences.com/-- develops, manufactures and sells
sensors and systems for the security, safety and defense (SS&D)
industries.
As of March 31, 2016, the Company had $15.6 million in total
assets, $100 million in total liabilities, and a total
stockholders' deficit of $84.6 million.
Marcum LLP, in Boston, Massachusetts, issued a "going concern"
qualification on the consolidated financial statements for the year
ended June 30, 2015, citing that as of Sept. 15, 2015, the
Company's principal obligation to its primary lenders was
approximately $65,046,000 and accrued interest of approximately
$15,393,000. The Company is required to repay all borrowings and
accrued interest to these lenders on March 31, 2016. These
conditions raise substantial doubt about its ability to continue as
a going concern.
IMX ACQUISITION: Case Summary & 30 Largest Unsecured Creditors
--------------------------------------------------------------
Debtor affiliates filing separate Chapter 11 bankruptcy petitions:
Debtor Case No.
------ --------
IMX Acquisition Corp. 16-12238
aka Ion Metrics Inc.
500 Research Drive, Unit 3
Wilmington, MA 01887
Implant Sciences Corporation 16-12239
C Acquisition Corp. 16-12240
Accurel Systems International Corporation 16-12241
Type of Business: Explosives trace detection
Chapter 11 Petition Date: October 10, 2016
Court: United States Bankruptcy Court
District of Delaware (Delaware)
Judge: Hon. Brendan Linehan Shannon
Debtors'
General
Counsel: Paul V. Shalhoub, Esq.
Debra C. McElligott, Esq.
WILLKIE FARR & GALLAGHER LLP
787 Seventh Avenue, New York
New York, NY 10019
Tel: (212) 728-8000
Fax: (212) 728-8111
E-mail: pshalhoub@willkie.com
dmcelligott@willkie.com
- and -
Jennifer J. Hardy, Esq.
WILLKIE FARR & GALLAGHER LLP
600 Travis Street, Suite 2310
Houston, TX 77002
Tel: (713) 510-1766
Fax: (713) 510-1799
E-mail: jhardy2@willkie.com
Debtors'
Delaware
Counsel: Donald J. Bowman, Jr., Esq.
Matthew B. Lunn, Esq.
Shane M. Reil, Esq.
YOUNG, CONAWAY, STARGATT & TAYLOR LLP
1000 North King Street
Wilmington, DE 19801
Tel: 302-571-6600
E-mail: mlunn@ycst.com
dbowman@ycst.com
sreil@ycst.com
Debtors'
Financial
Advisor
and Investment
Banker: CHARDAN CAPITAL MARKETS, LLC
17 State Street, Suite 1600
New York, New York 10004
Debtors'
Financial
Advisor and
Investment
Banker: NOBLE FINANCIAL CAPITAL MARKETS
160 Federal Street
Boston, Massachusetts 02110
Debtors'
Claims,
Noticing and
Solicitation
Agent: KURTZMAN CARSON CONSULTANTS, LLC
1290 Avenue of the Americas
9th Floor, New York, New York 10104
IMX Acquisition's
Estimated Assets: $100 million to $500 million
IMX Acquisition's
Estimated Debt: $100 million to $500 million
The petitions were signed by William J. McGann, president.
Debtors' List of 30 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Cooley, Godward & Kronish Professional $847,131
101 California services
Street, FL5
San Francisco, CA
94111-5800
Gordon Atkinson
Email: atkinsongc@cooley.com
Jay Hohf
Email: jhofh@cooley.com
Birk Manufacturing, Inc. Trade Debts $729,885
141 Capital Drive
East Lyme, CT 06333
Attn: Michael Mattox
Tel: (860) 739-4170
Email: mmattox@birkmfg.com
Target Tecnologia, S.A. Trade Debts $370,858
Ctra de Fuencaral
24. Portal I Planta
3a
28108 Alcobendas
(Madrid) Spain
Pedro Rolandi
Email: p.rolandi@target-technologia.es
Luis Rolandi
Email: I.rolandi@target-technologia-es
Data Electronics Devices Trade Debts $345,781
32 Northwestern Drive
Salem, NH 03079
Vic Giglio
Email: v.giglio@dataed.com
Christopher Short
Email: Chris.short@dataed.com
Scott Electronics Trade Debts $320,721
33 Northwestern Drive
Salem, NH 03079
David Metzemakers
Email: davidm@scottelec.com
Tel: (603) 893-2845
Patricia French
Email: Patf@sctottelec.com
Ohlheiser Corporation Trade Debts $320,215
831 North Mountain Road
Newington, CT 06111
Steven Muise
Email: smuise@ohlheiser.com
Tel: (800) 858-9368
GeorgeAnn Smith
Email: Georgeann.smith@otpet.com
Tel: (614) 342-6455
Ellenoff, Grossman and Schole Professional $298,194
1345 Avenue of the Americas Services
New York, NY 10105
Attn: Richard Anslow
Email: ranslow@egs.com
Tel: (212) 370-1300
Leidos Trade Debts $290,000
333N Wilmot Road
Tuscon, AZ 85711
Attn: Anthony Aquino
Email: Anthony.j.aquino@leidos.com
Tel: (703) 400-6730
Attn: Jayme Gomex
Email: Jaime.n.gomex@leidos.com
Tel: (520) 284-7204
Thermofab Trade Debts $233,716
78 Walker Road
Shirley, MA 01464
Attn: Michael Wahl
Email: m@thermofab.com
Tel: (978) 835-7979
Arrow Electronics, Inc. Trade Debts $187,164
Email: shughes@arrow.com
danker@arrow.com
Manufacturing Resource Group Trade Debts $146,895
Senaia International Inc. Trade Debts $143,224
Email: fskulnik@senaia-intl.com
Telpar, Inc. Trade Debts $104,576
Email: Barbara-scull@peak-ryzex.com
Goulston & Storrs LLP Professional $90,000
Email: ksicklick@goulstonstorrs.com services
Kontron
Email: Gary.shull@us.kontron.com Trade Debts $89,553
Dolores.deppa@us.kontron.com
LNG Security Services Pvt. Ltd. Trade Debts $85,167
Email: tpg@lngss.com
Danvers Industrial Packaging Trade Debts $82,449
Email: lisac@danpack.com
Marcum LLP Trade Debts $81,121
Email: Kevin.cole@marcumllp.com
Clear Align Trade Debts $80,134
Email: Angelique.irvin@clearalign.com
MK Services Trade Debts $75,388
Email: wendyclattenberg@engineering
specialties
The Staffing Group, Inc. Trade Debts $71,997
Email: jeseccareccio@andoverpersonnel.com
Vici Metronics Trade Debts $60,200
Email: Kristie.parker@vici.com
Greenbelt Industries Trade Debts $58,758
Email: smorin@greenbelting.com
abritto@greenbelting.com
Ken Mar LLC Trade Debts $57,994
Email: pcameron@ken-mar-psf.com
Excelitas Corporation Trade Debts $57,194
Email: Guy.cot@excelitas.com
Precision Machinists Company Trade Debts $50,317
Email: dirk@precisionmachinists.net
Nesco Resources LLC Trade Debts $48,216
Email: grattarola@nescoresource.com
L-Tronics Incorporated Trade Debts $45,356
Comco Plastics, Inc. Trade Debts $46,495
Email: mikefrench@compoplastics.com
Powerstax PLC Trade Debts $44,280
Email: Tim.worley@powerstax.com
INTELLIPHARMACEUTICS INT'L: AST Appointed as Warrant Agent
----------------------------------------------------------
Intellipharmaceutics International Inc. has instructed American
Stock Transfer & Trust Company, LLC to send a notice to holders of
the Common Stock Purchase Warrants issued by the Company on or
after June 2, 2016, in connection with that certain Underwriting
Agreement between the Company and Dawson James Securities, Inc.,
dated May 27, 2016. The Notice relates to the appointment of AST
as warrant agent for the purpose of having AST act on behalf of the
Company in connection with the registration, transfer, exchange and
exercise of the Warrants. (AST is not acting as warrant agent in
respect of any other warrants previously issued by the
Registrant.)
A full-text copy of the Notice is as follows:
Dear Warrant Holders:
Reference is made to that certain Common Stock Purchase Warrant
issued to you (the "Holder") on or after June 2, 2016, in
connection with the execution of that certain Underwriting
Agreement between Intellipharmaceutics International Inc. and
Dawson James Securities, Inc., dated May 27, 2016. All capitalized
terms not separately defined in this Notice shall have the same
meanings as defined in the Warrants.
The Company has entered into a Warrant Agent Agreement with its
United States cotransfer agent and registrar, American Stock
Transfer & Trust Company, LLC for the purpose of having the Warrant
Agent act on behalf of the Company in connection with the
registration, transfer, exchange and exercise of the Warrants.
The Warrant Agent has agreed to from time to time register the
transfer or exchange of any outstanding Warrant certificate upon
records maintained by the Warrant Agent for such purpose upon
surrender of such Warrant certificate to the Warrant Agent for
transfer or exchange, accompanied by appropriate instruments of
transfer.
A holder of Warrants may exercise them by timely delivering to the
office of the Warrant Agent a duly executed Notice of Exercise
form, paying to the Warrant Agent the applicable aggregate Exercise
Price by wire transfer or cashier's check drawn on a U.S. bank
(unless the cashless exercise procedure specified in the Warrants
is (i) specified in the applicable Notice of Exercise and (ii) then
permitted by the applicable Warrant terms), and, to the extent
required, surrendering to the Warrant Agent such Warrants for
cancellation within the applicable time periods provided for in the
Warrants. A completed Notice of Exercise form along with payment
of the Exercise Price and instructions for delivery of the shares
should be sent to the Warrant Agent at the address below. Checks
should be made payable to American Stock Transfer & Trust Co., LLC
or payment can be wired (instructions below) directly to AST.
American Stock Transfer & Trust Company, LLC
6201 15th Avenue
Brooklyn, NY 11219
Attention: Reorg Dept.2
Domestic wire transfer information is:
JP MORGAN CHASE BANK
ABA # 021 000 021
ACCT # 530-354616
ACCT NAME: AMERICAN STOCK TRANSFER & TRUST CO
AS AGENT FOR INTELLIPHARMACEUTICS WARRANTS
ATTN: AMY CIOFFI - REORG DEPT.
About Intellipharmaceutics
Toronto, Canada-based Intellipharmaceutics International Inc. is
incorporated under the laws of Canada. Intellipharmaceutics is a
pharmaceutical company specializing in the research, development
and manufacture of novel and generic controlled-release and
targeted-release oral solid dosage drugs. Its patented
Hypermatrix(TM) technology is a multidimensional controlled-
release drug delivery platform that can be applied to the
efficient development of a wide range of existing and new
pharmaceuticals. Based on this technology, Intellipharmaceutics
has a pipeline of product candidates in various stages of
development, including filings with the FDA in therapeutic areas
that include neurology, cardiovascular, gastrointestinal tract,
diabetes and pain.
Intellipharmaceutics reported a net loss of US$7.43 million on
US$4.09 million of revenues for the year ended Nov. 30, 2015,
compared to a net loss of US$3.85 million on US$8.76 million of
revenues for the year ended Nov. 30, 2014.
As of May 31, 2016, the Company had US$3.81 million in total
assets, US$5.78 million in total liabilities and a shareholders'
deficiency of US$1.96 million.
Deloitte LLP issued a "going concern" opinion on the consolidated
financial statements for the year ended Nov. 30, 2015, citing that
the Company's recurring losses from operations and shareholders'
deficiency raise substantial doubt about its ability to continue
as a going concern.
IRON BRIDGE TOOLS: Hires Dan Delarosa as Special Patent Counsel
---------------------------------------------------------------
Iron Bridge Tools, Inc., seeks authorization from the U.S.
Bankruptcy Court for the Southern District of Florida to employ Dan
M. Delarosa, Esq., as Special Patent Counsel.
The Debtor requires Delarosa to:
(a) conduct a review of the Office Action and Examiner's
comments from Patent Office regarding the ongoing prosecution of
the patent applications under the U.S. Application No. 14/544,756
for a "Sliding Knife" and the U.S. Application No. 14/544,757 for a
"Multi-Joint Driver".
(b) review each prior art reference (which is either a patent
or publication);
(c) create a strategy;
(d) prepare an amendment to the pending claims;
(e) make any formality corrections required;
(f) draft an argument summarizing basis for
amendment/corrections and indicating how the actions taken overcome
the issued office action; and,
(g) prepare and submit the office action response by filing it
with the Patent Office upon completion of all the other tasks.
Mr. Delarosa will be paid at an hourly rate of $500 and will be
reimbursed for the actual and necessary expenses incurred.
Dan M. Delarosa, member of the firm, assured the Court that the
firm is a "disinterested person" as the term is defined in Section
101(14) of the Bankruptcy Code and does not represent any interest
adverse to the Debtors and their estates.
Mr. Delarosa can be reached at:
Dan M. Delarosa, Esq.
DAN M. DE LA ROSA
300 E77th Street, Suite 24C
New York, NY 10075
Tel.: (212) 570-6597
About Iron Bridge Tools
Iron Bridge Tools, Inc. filed a chapter 11 petition (Bankr. S.D.
Fla. Case No. 16-17505) on May 25, 2016. The petition was signed by
Glenn Robinson, president.
The Debtor is represented by Craig A. Pugatch, Esq., at Rice
Pugatch Robinson Storfer & Cohen, PLLC. The case is assigned to
Judge Raymond B. Ray.
The Debtor estimated assets of $1 million to $10 million and debts
of $10 million to $50 million.
IRON BRIDGE TOOLS: Hires Emil Braca as Special IP Counsel
---------------------------------------------------------
Iron Bridge Tools, Inc. seeks authorization from the U.S.
Bankruptcy Court for the Southern District of Florida to employ
Emil Braca, Esq., as Special Intellectual Property Infringement and
Investigation Counsel, nunc pro tunc to the May 25, 2016 petition
date.
The Debtor requires Mr. Braca to:
(a) meet with the Debtor's principal and receive and review
allegedly infringe products, in this case tools;
(b) review the Debtor's patent license portfolio and identify
relevant rights of the Debtor and compare patents to allegedly
infringing products;
(c) upon review, conduct analysis and draft cease and desist
letters to send to supplier/manufacturer of the product;
(d) review certain products and their design and functionality
and will conduct a comprehensive prior art search from the Patent
Office database;
(e) review all the search results and prior art references and
will thoroughly review the drawings, specification, and claims for
each prior art reference;
(f) compare the search results to the product to assess it
from both an infringement analysis and a novelty analysis; and,
(g) review with the results and provide strategies to address
the results of the search and potential infringement
or protection of rights.
Mr. Braca will be paid at an hourly rate of $300.00.
The Debtor has also agreed to reimburse Mr. Braca the actual and
necessary expenses that he incurs, including, but not limited to,
any costs advanced by Braca specifically for the Legal Services, at
the rates commonly charged for such costs to other clients of the
Braca.
Mr. Braca assured the Court that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code and does not represent any interest adverse to the Debtors and
their estates.
Mr. Braca can be reached at:
Emil Braca, Esq.
300 E77th Street, Suite 24C
New York, NY 10075
About Iron Bridge Tools
Iron Bridge Tools, Inc. filed a chapter 11 petition (Bankr. S.D.
Fla. Case No. 16-17505) on May 25, 2016. The petition was signed by
Glenn Robinson, president.
The Debtor is represented by Craig A. Pugatch, Esq., at Rice
Pugatch Robinson Storfer & Cohen, PLLC. The case is assigned to
Judge Raymond B. Ray.
The Debtor estimated assets of $1 million to $10 million and debts
of $10 million to $50 million.
JAMES ALVIN JOSEPH: Plan Outline Okayed, Nov. 8 Conf. Hrg. Set
--------------------------------------------------------------
The U.S. Bankruptcy Court for the District of South Carolina has
approved the Disclosure Statement dated Sept. 29, 2016 explaining
the Chapter 11 Plan proposed by James Alvin Joseph.
The hearing on the confirmation of the plan will be held on
Nov. 8, 2016 at 10:30 a.m. in Spartanburg, South Carolina.
Voting deadline on the Plan is on Nov. 3.
As previously reported by The Troubled Company Reporter, the Plan
proposes to pay unsecured creditors in full in 120 months.
James Alvin Joseph, a nurse anesthetist, sought protection under
Chapter 11 of the Bankruptcy Code (Bankr. D.S.C. Case No. 15-06707)
on Dec. 18, 2015, and is represented by Alecia T. Compton, Esq., at
the Compton Law Firm, in Greenwood, South Carolina.
JEFF BENFIELD: Taps Expert Horticultural as Appraiser
-----------------------------------------------------
Jeff Benfield Nursery, Inc. seeks approval from the U.S. Bankruptcy
Court for the Western District of North Carolina to hire an
appraiser.
The Debtor proposes to hire Expert Horticultural Evaluations and
pay the firm an hourly rate of $125 or $1,000 per day.
R. Gene Redlin, an appraiser employed with Expert Horticultural,
disclosed in a court filing that the firm is a "disinterested
person" as defined in section 101(14) of the Bankruptcy Code.
The firm can be reached through:
R. Gene Redlin
Expert Horticultural Evaluations
38W183 Joan Drive,
St. Charles, IL 60175
Phone: 630-513-5105
Fax 63o-513-5127
About Jeff Benfield Nursery
Jeff Benfield Nursery, Inc. sought protection under Chapter 11 of
the Bankruptcy Code (Bankr. W.D.N.C. Case No. 16-40375) on August
26, 2016. The case is assigned to Judge J. Craig Whitley.
The Debtor previously filed a Chapter 11 petition (Bankr. W.D.N.C.
Case No. 09-40311). The petition, filed on April 17, 2009, was
assigned to Judge George R. Hodges.
JEFFREY HOWARD WALSH: Disclosure Statement Hearing on Nov. 29
-------------------------------------------------------------
Bankruptcy Judge Paul Sala in Arizona will hold a hearing on Nov.
29, 2016, at 10 a.m., to consider approval of the disclosure
statement explaining the Chapter 11 Plan of Jeffrey Howard Walsh
and Pamela Walsh.
Objections to the disclosure statement are due within five days
prior to the hearing.
The Debtors intend to keep control of their assets and use their
income to make payments required under the Plan.
The Walshes propose to pay holders of allowed general unsecured
claims a total of $15,304. According to the Disclosure Statement,
general unsecured claims total $176,898.
Jeffrey Howard Walsh is employed as an Area Domestic Manager for
DHL Global Forwarding while Pamela Walsh is a Domestic Service
Specialist with DHL. The Walshes filed a Chapter 11 bankruptcy
petition (Bankr. D. Ariz. Case No. 16-06055) on May 27, 2016. The
Debtors are represented by:
M. Preston Gardner, Esq.
Davis Miles McGuire Gardner PLLC
40 E. Rio Salado Parkway, Suite 425
Tempe, AZ 85281
JOHN Q. HAMMONS: Taps UBS Securities as Financial Advisor
---------------------------------------------------------
John Q. Hammons Fall 2006, LLC seeks approval from the U.S.
Bankruptcy Court for the District of Kansas to hire UBS Securities,
LLC.
The firm will provide these financial advisory services:
(a) advise the Debtors regarding the financial aspects of
their bankruptcy cases;
(b) assist the Debtors in reviewing, analyzing, structuring,
formulating and negotiating the financial aspects of any
proposed sale of assets, plan of reorganization, or
similar transactions; and
(c) advise the Debtors regarding any sale or financing
transaction.
UBS Securities will be compensated based on this fee structure:
(a) A flat monthly fee of $175,000, provided that 50% of any
monthly fee paid in excess of $1.05 million will be
credited toward any restructuring or sale transaction
fees.
(b) Upon consummation of any restructuring transaction, a
flat fee of $7 million.
(c) Upon consummation of a sale transaction, (i) 1.5% of
the sale transaction value for amounts up to an including
$300 million; (ii) 1% of the sale transaction value for
amount in excess of $300 million and up to and including
$600 million; (iii) 0.75% of the sale transaction value
for amounts in excess of $600 million and up to and
including $1 billion; (iv) 0.50% of the sale transaction
value for amounts in excess of $1 billion.
The sale transaction fee is subject to a minimum fee of
$3 million.
(d) Upon closing of a financing transaction, (i) 1.5% of the
aggregate gross amount of the secured obligations raised;
(ii) 3% of the aggregate gross amount of unsecured
obligations raised; and (iii) 5.0% of the aggregate gross
amount of capital raised.
David Descoteaux, managing director of UBS, disclosed in a court
filing that the firm is a "disinterested person" as defined in
section 101(14) of the Bankruptcy Code.
The firm can be reached through:
David Descoteaux
UBS Securities, LLC
1285 Avenue of the Americas, 10th Floor
New York, NY 10019
Phone: 203-719-3000
About John Q. Hammons Fall 2006, LLC.
Springfield, Mo.-based John Q. Hammons Hotels & Resorts (JQH) --
http://www.jqhhotels.com/-- is a private, independent owner and
manager of hotels in the United States, representing brands such
as: Marriott, Hilton, Embassy Suites by Hilton, Sheraton, IHG,
Chateau on the Lake Resort / Spa & Convention Center, and Plaza
Hotels Collection. It has portfolio of 35 hotels representing
approximately 8,500 guest rooms/suites in 16 states.
John Q. Hammons Hotels & Resorts on June 27, 2016, disclosed that
the family of companies, the Revocable Trust of John Q. Hammons,
and their related affiliates, filed voluntary petitions (Bankr. D.
Kan. Case No. 16-21139 to Case No. 16-21208) to restructure under
Chapter 11 of the U.S. Bankruptcy Code in Kansas City.
The Debtors are represented by Mark A. Shaiken, Esq., Mark S.
Carder, Esq., and Nicholas Zluticky, Esq., at Stinson Leonard
Street LLP, in Kansas City, Missouri. The Debtors' conflict
counsel is Victor F Weber, Esq., at Merrick Baker and Strauss PC,
in Kansas City, Missouri.
At the time of filing, the Debtors estimated assets at $100 million
to $500 million and liabilities at $100 million to $500 million.
The petitions were signed by Greggory D Groves, vice president.
JOYCE LEE: Taps Duffy Realty as Real Estate Agent
-------------------------------------------------
Joyce Lee Corporation seeks approval from the U.S. Bankruptcy Court
for the Northern District of Georgia to hire a real estate agent.
The Debtor proposes to hire Duffy Realty in connection with the
sale of its real properties located at 660 Whitehall Way, Roswell,
and 2496 Memorial Drive, Atlanta, Georgia.
Duffy Realty will be compensated pursuant to the terms contained in
the listing agreement, a copy of which is available for free at
https://is.gd/fu1VVP
Duffy Realty does not represent any interests adverse to the
Debtor's estate and is a "disinterested person" as defined in
section 101(14) of the Bankruptcy Code, according to court
filings.
The firm can be reached through:
Rhonda Duffy
Duffy Realty
10 Cumming Street
Alpharetta, GA 30009
Phone: 678-318-1810
Fax: 678-318-3605
About Joyce Lee
Joyce Lee Corp. sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. N.D. Ga. Case No. 16-59949) on June 6,
2016, disclosing under $1 million in both assets and liabilities.
The Debtor is represented by Jenny Nguyen, Esq., at Nguyen Stephen,
PC.
No official committee of unsecured creditors has been appointed in
the case.
JUMIO INC: Bloso Sues Eduardo Saverin Over $5-Mil. Loss
-------------------------------------------------------
Tom Corrigan, writing for The Wall Street Journal Pro Bankruptcy,
reported that a significant Jumio Inc. shareholder is suing
Facebook co-founder Eduardo Saverin and other former company
leaders over alleged "misrepresentations and ineptitude" that
landed Jumio in bankruptcy this year.
According to the report, the shareholder, Bloso Investments Ltd.,
says in the lawsuit that it stands to lose the nearly $5 million it
invested in Jumio as a result of the company's bankruptcy, a fate
other stockholders share. Bloso is blaming its impending loss on
allegedly misleading statements that it says Mr. Saverin and others
made about the identity-verification company's financial condition,
the report related.
Bloso's complaint, filed Sept. 29 in Delaware’s Court of
Chancery, says it based its investment in Jumio on revenue
projections that "turned out to be incorrect and deliberate
misrepresentations," the report further related. Such
misrepresentations would have been revealed, Bloso said, had the
company "applied any proper internal financial and accounting
controls," the report added.
In a statement, a spokeswoman for Mr. Saverin, who now lives in
Singapore, said the allegations were "baseless" and that he would
"vigorously contest" the lawsuit, the report said. "He was harmed
as much as, if not more than, any other investor of the company by
former management's actions and is contemplating his own claims
against them," the report further cited the spokeswoman as saying.
About JMO Wind Down
Known as Jumio Inc. before selling its assets in a bankruptcy
court-sanctioned sale, JMO Wind Down Inc. was an online and mobile
identity management and credentials authentication company.
Headquartered in Palo Alto, California, Jumio had operations in
the
United States, Europe and India. Its customers include, among
others, Airbnb, United Airlines, WorldRemit, EasyJet, and
Duolingo.
Jumio Inc. filed a Chapter 11 bankruptcy petition (Bankr. D. Del.
Case No. 16-10682) on March 21, 2016. The petition was signed by
Stephen Stuut as chief financial officer. The Debtor estimated
assets of $1 million to $10 million and debt of up to $50 million.
Judge Brendan Linehan Shannon is the case judge.
The Debtor tapped Landis Rath & Cobb LLP as bankruptcy counsel;
Ernst & Young, LLP, as financial advisor; Wilmer Hale, LLP ("WH")
as special corporate counsel; and Cooley LLP as special litigation
counsel. Rust Consulting/Omni Bankruptcy is the claims and
noticing agent.
The Official Committee of Equity Holders retained K&L Gates LLP as
general bankruptcy counsel, Pachulski Stang Ziehl & Jones LLP as
co-counsel, and EisnerAmper as financial advisor.
* * *
The Debtor filed a motion to sell the assets for $22.7 million
(the
"Stalking Horse Bid") to Jumio Acquisition, LLC (the "Stalking
Horse Bidder"), absent higher and better offers. Jumio
Acquisition is an entity formed by Facebook co-founder Eduardo
Saverin, holder $15.8 million secured debt on account of
prepetition senior secured convertible promissory notes, and who
was invested at least $23 million in the preferred and common
equity of the Debtor.
Unable to resolve issues with Equity Holders, the stalking horse
withdrew the bid. On May 6, 2016, the Court entered an order
authorizing the Debtor to sell the assets to an entity formed by
Centana Growth Partners, Jumio Buyer Inc. (the "Buyer"), for cash
equal to $850,000 less certain agreed cure costs totaling no more
than $300,000 and plus assumption all liabilities of operating the
business from and after May 9, 2016
The Debtor changed its name to JMO Wind Down Inc., following the
sale.
On July 25, 2016, the Debtor announced a Global Settlement with
Mr.
Saverin, and the Equity Committee. The Global Settlement forms
the
foundation of the consensual Plan of Liquidation filed by the
Debtor.
Oct. 17 Plan Confirmation Hearing
JMO Wind Down, Inc., formerly Jumio Inc., is slated to seek
confirmation of its Chapter 11 plan on Oct. 17, 2016, at 10:00
a.m.
(Eastern Time). At the hearing, the Debtor will also seek final
approval of the adequacy of the Disclosure Statement.
In early September 2016, the Honorable Brendan L. Shannon granted
interim approval of the Disclosure Statement and approved the
following confirmation schedule:
Event Date
----- ----
Record Date Aug. 31, 2016
Deadline to Serve Solicitation Package Sept. 3, 2016
Deadline to File Plan Supplement Sept. 30, 2016
Voting Deadline Oct. 7, 2016
Deadline for Opt-Out Election Forms Oct. 7, 2016
Deadline to Object to Disclosure Statement Oct. 11, 2016
Deadline for Debtor to Reply to Objections Oct. 14, 2016
Confirmation Hearing Oct. 17, 2016
The Debtor has proposed a Plan of Liquidation that promises a 100%
recovery for holders of general unsecured claims totaling
$390,000.
The Debtor estimates that the Estate will have Cash in the
approximate amount of $780,000 for distributions to holders of
allowed claims. The filing of a consensual plan was made possible
by a global settlement reached with secured creditor and equity
holder Eduardo Saverin, the Official Committee of Equity Holders
and other parties.
A full-text copy of the Disclosure Statement for the Amended Plan
of Liquidation is available for free at:
http://bankrupt.com/misc/deb16-10682_347_DS_JMO.pdf
A red-lined copy of the Disclosure Statement for the Amended Plan
of Liquidation is available for free at:
http://bankrupt.com/misc/deb16-10682_348_DS_JMO.pdf
K4M CONSTRUCTION: Secured Claims To Be Paid Upon Sale of Property
-----------------------------------------------------------------
K4M Construction & Development, LLC, filed with the U.S. Bankruptcy
Court for the Southern District of Texas an amended disclosure
statement describing the Debtor's plan of reorganization.
Under the Plan, Class 1- Secured Claims is impaired. Each holder
of an allowed Secured Claim will receive payment upon the
liquidation and sale of their respective collateral. If the
proceeds of the specific collateral are insufficient to satisfy the
respective allowed secured claim, the remaining amounts owed will
be immediately and automatically converted to a Class 2 - General
Unsecured Claim, with each receiving a pro rata share of the Class
A Liquidating Trust Beneficial Interests. If a holder of a Class 1
- Secured Claim receives funds equal to its allowed secured claim,
the holder will receive no further distributions, nor will it have
a claim against the Debtor or the Liquidating Trust.
The only major source of funding for the Plan is the Debtor's
property. On the Petition Date, the Debtor's assets included
improved real property (single family home) located at 2919 Oak
Pointe, Missouri City, Texas 77459. The Debtor scheduled a value
for the Property of $500,000, however the Property is currently
being marketed at an asking price of $540,000. If the Property
does not sell for more than the secured claim of MPM, the
Liquidation Trust would have to rely on litigation proceeds to fund
any distribution to unsecured creditors.
As reported by the Troubled Company Reporter on Sept. 20, 2016, the
Debtor filed with the Court a proposed plan to exit Chapter 11
protection, which proposed that each Class 2 general unsecured
creditor receive a pro rata share of the Class A Liquidation Trust
Beneficial Interests on the distribution date. These creditors
assert a total of $509,684 in claims.
The Amended Disclosure Statement is available at:
http://bankrupt.com/misc/txsb16-30646-82.pdf
About K4M Construction
K4M Construction & Development, LLC, owns a single family residence
located at 2919 Oak Pointe Boulevard, Missouri City, Texas 77479.
K4M Construction filed a Chapter 11 bankruptcy petition (Bankr.
S.D. Tex. Case No. 16-30646) on Feb. 2, 2016. Johnie J. Patterson
Esq., at Walker & Patterson as bankruptcy counsel.
KISSNER MILLING: S&P Affirms 'B' CCR; Outlook Stable
----------------------------------------------------
S&P Global Ratings said it affirmed its 'B' long-term corporate
credit rating on Kansas City- based de-icing rock salt producer and
packager Kissner Milling Co. Ltd. The outlook is stable.
At the same time, S&P Global Ratings affirmed its 'B' issue-level
rating, with a '4' recovery rating, on Kissner's US$220 million
senior secured notes due 2019. The '4' recovery rating on the term
loan indicates S&P's expectation for average (30%-50%; higher end
of the range) recovery under its simulated default scenario.
"We are affirming our ratings on Kissner following our review of
the company's credit profile. Our updated analysis of Kissner now
includes BSC Holdings Inc., which we view as complementary to
Kissner, providing some operational and geographic
diversification," said S&P Global Ratings credit analyst Michelle
Dathorne. "Pro forma our consolidation of BSC into our analysis,
our view of Kissner's business and financial risk profiles remain
unchanged," Ms. Dathorne added.
The affirmation reflects S&P's assessment of Kissner's financial
risk profile as highly leveraged and business risk profile as weak,
both of which are unchanged.
In addition, S&P's analysis of Kissner's business risk and
financial risk profiles now includes S&P's assessment of BSC's
contribution to Kissner's overall credit profile, as S&P views the
companies' operations as complementary and closely aligned. S&P
assess Kissner's business risk profile, which incorporates BSC, as
weak based on Kissner's small scale and limited product offering,
which, although they hamper the company's business risk profile are
somewhat offset by S&P's assessment of the improved integration
benefits of Kissner's operating link with BSC, and S&P's estimate
of the two entities' consolidated cost structure.
S&P's revised cash flow adequacy and financial risk profile for
Kissner, pro forma our consolidation of BSC, remain unchanged at
highly leveraged, reflecting S&P's view that the company will
generally maintain credit metrics consistent with this assessment.
The stable outlook reflects S&P Global Ratings' opinion that
Kissner's cost structure, EBITDA margins, cash flow generation, and
associated cash flow metrics will continue to support the 'B'
rating during S&P's 12-month outlook period. Furthermore, S&P
expects the company should be able to maintain its five-year,
weighted-average FFO-to-debt ratio near 10%, which S&P views to be
at the stronger end of the cash flow ratio range indicative of a
highly leveraged financial risk profile.
S&P could lower the rating if Kissner's weighted-average
FFO-to-debt ratio trended below 6%, and S&P expected it would
remain below this level on a consistent basis. Cash flow metrics
could deteriorate due to unexpected dividend payouts or consecutive
years of mild winter weather conditions. S&P could also lower the
rating if Kissner's liquidity position deteriorated to a level S&P
viewed to be less than adequate.
An upgrade in the next 12 months is unlikely because S&P expects
the company will maintain credit measures consistent with a highly
leveraged financial risk profile for at least the next few years.
Nevertheless, S&P could raise the rating if it believed Kissner was
able to increase its five-year, weighted-average FFO to debt above
12%, and maintain its cash flow metrics at or above this level.
KLAMON LLC: Seeks to Hire Wauson Probus as Special Counsel
----------------------------------------------------------
Klamon LLC seeks approval from the U.S. Bankruptcy Court for the
Southern District of Texas to hire Wauson Probus as special
counsel.
The firm will represent the Debtor in litigation against creditors
Service First Ltd., LLC and Riversand Partners, LLC in the
bankruptcy court.
The firm's professionals and their hourly rates are:
John Wesley Wauson $450
Matthew B. Probus $350
Anabel King $250
Sharon Dianiska $100
Ginger Davis $65
In a court filing, Mr. Probus disclosed that the firm is a
"disinterested person" as defined in section 101(14) of the
Bankruptcy Code.
The firm can be reached through:
Matthew B. Probus, Esq.
Wauson Probus
One Sugar Creek Center Blvd., Suite 880
Sugar Land, TX 77478
Tel: 281-242-0303
Fax: 281-242-0306
About Klamon LLC
Klamon LLC, dba Down South Offroad Park, sought protection under
Chapter 11 of the Bankruptcy Code (Bankr. S.D. Texas Case No.
16-32904) on June 6, 2016. The petition was signed by James Hunter
Clamon, manager.
The case is assigned to Judge Jeff Bohm. The Debtor is represnted
by Ronald J. Sommers, Esq.
At the time of the filing, the Debtor disclosed $1.71 million in
assets and $3.35 million in debts.
LAST CALL: Committee Taps Protiviti as Financial Advisor
--------------------------------------------------------
The official committee of unsecured creditors of Last Call
Guarantor, LLC seeks approval from the U.S. Bankruptcy Court for
the District of Delaware to hire Protiviti Inc.
Protiviti will serve as the committee's financial advisor in
connection with the Chapter 11 cases Last Call and its affiliates.
The services to be provided by the firm include analyzing the
Debtors' business, reviewing their plan of reorganization and
negotiating with them regarding the treatment of unsecured claims
under the plan.
The firm's professionals and their hourly rates are:
Managing Directors $675 - $710
Associate Directors/Directors $410 - $550
Managers/Senior Managers $325 - $460
Consultants/Senior Consultants $210 - $300
Administrative $120
Michael Atkinson, managing director of Proviti, disclosed in a
court filing that the firm and its employees are "disinterested" as
defined in section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Michael Atkinson
Protiviti Inc.
1 East Pratt Street, Suite 800
Baltimore, MD 21202
Phone: 410-454-6800
Fax: 410-649-1111
Email: baltimore@protiviti.com
About Last Call Guarantor
Headquartered in Dallas, Texas, and with operations in 25 states,
Last Call Guarantor, LLC, et al., own and operate sports bar and
casual family-dining restaurants under three well-recognized
concepts, namely Fox & Hound, Bailey's Sports Grille, and Champps.
They operate 48 Fox & Hound locations, nine Bailey's locations, and
23 Champps locations. They have franchise agreements with five
franchisees for Champps Restaurants. The Company has more than
4,700 full and part-time employees.
On Aug. 10, 2016, each of Last Call Guarantor, LLC, Last Call
Holding Co. I, Inc., Last Call Operating Co. I, Inc., F&H
Restaurants IP, Inc., KS Last Call Inc., Last Call Holding Co. II,
Inc., Last Call Operating Co. II, Inc., Champps Restaurants IP,
Inc. and MD Last Call Inc. filed a Chapter 11 bankruptcy petition
(Bankr. D. Del. Case Nos. 16-11844 to 16-11852). The petitions were
signed by Roy Messing, the CRO.
Last Call Guarantor estimated assets in the range of $10 million to
$50 million and liabilities of $100 million to $500 million.
Dennis A. Meloro, Esq., Nancy A. Mitchell, Esq., Nancy A. Peterman,
Esq., Matthew Hinker, Esq., and John D. Elrod, Esq., at Greenberg
Traurig, LLP, represent the Debtors as counsel.
Judge Kevin Gross is assigned to the cases.
Andrew Vara, acting U.S. trustee for Region 3, on Aug. 23 appointed
seven creditors of Last Call Guarantor, LLC, et al., to serve on
the official committee of unsecured creditors. The Committee hired
Pachulski Stang Ziehl & Jones LLP, to serve as counsel.
LBM BORROWER: S&P Assigns 'B+' CCR; Outlook Stable
--------------------------------------------------
S&P Global Ratings said it assigned its 'B+' corporate credit
rating to Buffalo Grove, Ill.-based LBM Borrower LLC (U.S. LBM).
The rating outlook is stable.
LBM Borrower LLC is assuming the debt of U.S. LBM Holdings LLC.
S&P will subsequently withdraw the corporate credit rating on U.S
LBM Holdings LLC.
"The stable rating outlook reflects our expectation that the
company will continue to generate positive free cash flow and
maintain adequate liquidity while maintaining total leverage below
6x over the next 12 months, pro forma for recent acquisitions,"
said S&P Global Ratings credit analyst Maurice Austin. "The
outlook also reflects our expectation that liquidity will remain
adequate to meet all of the company's obligations, including
capital spending requirements, and that availability under the
secured revolving credit facility will be adequate to fund working
capital needs."
A negative rating action is less likely in the next 12 months,
given S&P's favorable outlook for home construction and remodeling
spending. However, S&P could take such an action if the U.S.
housing recovery stalls and forecast EBITDA falls in excess of 25%
below S&P's 2017 forecast, causing leverage to deteriorate above
8x.
S&P is unlikely to upgrade the company over the next year given its
ownership by a private equity firm and an acquisitive financial
policy. Based on S&P's criteria, it would continue to view
financial risk as highly leveraged even if debt to EBITDA declines
to below 5x.
LEGEND OIL: Extends CEO's Term for Additional Two Years
-------------------------------------------------------
The letter agreement between Legend Oil and Gas, Ltd. and Andrew
Reckles in his role as chairman and chief executive officer was
renewed on Oct. 6, 2016, by the Board of Directors (with Mr.
Reckles abstaining) as follows:
* Two year term.
* Base compensation of $25,000 per month for Mr. Reckles' CEO
services.
* Beginning in calendar year 2016, an annual bonus will be
payable to Mr. Reckles either in common stock of the Company
or cash or a combination thereof, at the option of the Board
of Directors, in the amount of or having a value equal to up
to 50% of Mr. Reckles' annual salary at the time; annual
bonuses will be based on performance criteria to be
determined by the Board; any annual bonus awarded will be
payable on February 1st of the year following the year in
which the bonus is earned; and
* Reimbursement, on a monthly basis, of his out-of-pocket costs
and expenses to obtain health insurance policy coverage for
himself and his wife that is satisfactory to Mr. Reckles
payable monthly by the Company provided, however, that the
maximum amount payable by the Company to Mr. Reckles in
connection therewith will not exceed $1000 per month; OR
should Mr. Reckles choose to participate in the Company
benefit plan, he may do so and coverage will be provided for
he and his wife.
For the term of this agreement, the Company will provide a Company
vehicle to Northpoint Energy Partners, a company controlled by Mr.
Reckles, for Mr. Reckles' use.
Beginning Oct. 1, 2016, and continuing for the term of the
agreement, the Company shall provide a two week annual paid
vacation to Mr. Reckles. The vacation will be paid for by the
Company up to a total of $20,000.
In the event of a change in control of the Company, Mr. Reckles is
entitled to receive a one-time bonus, in cash, equal to 150% of his
Base Compensation plus his to date accrued and unearned annual
bonus through the contractual period.
Should the Company achieve EBITDA in any quarter of $350,000 or
greater, Mr. Reckles will be entitled to a cash bonus equal to
$25,000.
Should the Company make a material acquisition, Mr. Reckles and the
BOD will work together to amend his base compensation in order to
properly compensate the CEO for the expansion of the duties that
such an acquisition would entail.
In the event that Mr. Reckles is terminated without cause or
resigns with good reason, he is entitled to the same compensation
that he would have received if his employment had continued for the
remaining term of the agreement after such termination or
resignation.
About Legend Oil
Alpharetta, Ga.-based Legend Oil and Gas, Ltd., is a crude oil
hauling and trucking company. The Company has principal operations
in the Bakken region of North Dakota. The Company's segments
include Corporate, Trucking and Services. The Company holds
interests in Black Diamond Energy Holdings, LLC (Maxxon). Maxxon
is a trucking and oil and gas services company that operates in
North Dakota. The Company performs hauling services for
institutional drilling and exploration companies, as well as crude
oil marketers.
As of June 30, 2016, Legend Oil had $5.25 million in total assets,
$7.47 million in total liabilities and a total stockholders'
deficit of $2.21 million.
Legend Oil reported a net loss of $14.98 million in 2015 following
a net loss of $2.35 million in 2014.
GBH CPAs, PC, in Houston, Texas, issued a "going concern"
qualification on the consolidated financial statements for the year
ended Dec. 31, 2015, citing that Legend Oil and Gas Ltd. has
suffered recurring losses from operations and has a net working
capital deficiency that raise substantial doubt about its ability
to continue as a going concern.
LEGEND OIL: Issues $1.15 Million Debenture to Lorton Finance
------------------------------------------------------------
Legend Oil and Gas, Ltd., had entered into a securities purchase
agreement with Lorton Finance Company, an affiliate of Hillair
Capital Investments, LP, the Company's controlling shareholder,
pursuant to which it issued a Senior Secured Debenture Due
Sept. 30, 2019, to the Purchaser in the aggregate amount of
$1,150,000, payable in full on Sept. 30, 2019. The Debenture bears
interest at the rate of 20% per annum, payable monthly beginning
March 31, 2017. Beginning Sept. 30, 2017, the Company is obligated
to make monthly principal payments of $47,916.67. The repayment of
the Debenture is secured by titles to 19 trucks owned by
subsidiaries of the Company.
On or before March 31, 2017, upon mutual agreement of the Company
and the Purchaser, the Purchaser may purchase up to an additional
$850,000 in principal amount of the Debentures. Subject to the
conditions described below, such additional Debenture (i) will bear
interest at the same rate and payable on the same dates as the
initial Debenture, (ii) will have a first priority security
interest in the assets being acquired in connection with such
additional purchase, and (iii) will have principal amortization in
the same manner and on the same dates as principal is amortized
under the initial Debenture, and will otherwise be in substantially
the form of the initial Debenture.
In the event the parties increase the subscription amount as
described above, the Company will issue to the Purchaser a number
of shares of Series B Preferred Stock equal to five percent of the
dollar amount of such increase divided by the then-current Stated
Value (currently, $1,000 per share), and will amend its Certificate
of Designation of Preferences, Rights and Limitations of Series B
Convertible Preferred Stock to provide for an adequate number of
such shares of Series B Preferred Stock to permit such issuance
(without amending the terms of the Series B Convertible Preferred
Stock). For example, if the subscription amount is increased
$850,000 to the maximum of $2,000,000 on the first anniversary of
the issuance of any Series B Preferred Stock, the Company would
issue to the Purchaser 39.36 shares of Series B Preferred Stock
(($850,000 in increased Subscription Amount) x (5%) / ($1,000
initial Stated Value + $80 accrued and unpaid dividends)).
After taking into account the Purchaser's legal fees and other
expenses and the payment in full of the Company's line of credit
with State Bank & Trust Company in the amount of $274,954.56, the
net proceeds received by the Company was $787,500.
These transactions are exempt from registration subject to Section
4(2) of the Securities Act of 1933, as amended.
About Legend Oil
Alpharetta, Ga.-based Legend Oil and Gas, Ltd., is a crude oil
hauling and trucking company. The Company has principal operations
in the Bakken region of North Dakota. The Company's segments
include Corporate, Trucking and Services. The Company holds
interests in Black Diamond Energy Holdings, LLC (Maxxon). Maxxon
is a trucking and oil and gas services company that operates in
North Dakota. The Company performs hauling services for
institutional drilling and exploration companies, as well as crude
oil marketers.
As of June 30, 2016, Legend Oil had $5.25 million in total assets,
$7.47 million in total liabilities and a total stockholders'
deficit of $2.21 million.
Legend Oil reported a net loss of $14.98 million in 2015 following
a net loss of $2.35 million in 2014.
GBH CPAs, PC, in Houston, Texas, issued a "going concern"
qualification on the consolidated financial statements for the year
ended Dec. 31, 2015, citing that Legend Oil and Gas Ltd. has
suffered recurring losses from operations and has a net working
capital deficiency that raise substantial doubt about its ability
to continue as a going concern.
LEO MOTORS: Amends 43 Million Shares Resale Prospectus with SEC
---------------------------------------------------------------
Leo Motors, Inc. filed with the Securities and Exchange Commission
an amended Form S-1 registration statement relating to the sale by
BOU Trust, RDW Capital LLC, and Darrin M. Ocasio of up to
43,000,000 shares of common stock of the Company. The Company
amended the registration statement to delay its effective date.
BOU Trust is deemed to be an "underwriter" within the meaning of
the Securities Act of 1933, as amended, in connection with the
resale of the 35,045,784 shares that it is offering in this
prospectus, although it may not sell those shares pursuant to Rule
144 of the Securities Act. The prices at which the selling
stockholders may sell shares will be determined by the prevailing
market price for the shares or in privately negotiated
transactions. The Company will not receive any proceeds from the
sale of these shares by the selling stockholders. All expenses of
registration incurred in connection with this offering are being
borne by the Company, but all selling and other expenses incurred
by the selling stockholders will be borne by the selling
stockholders.
The Company's common stock is quoted on the OTCQB and trades under
the symbol "LEOM." On Sept. 21, 2016, the last reported sale price
of the Company's common stock as reported on the OTCQB was $0.14
per share.
A full-text copy of the Form S-1/A is available for free at:
https://is.gd/uEwDuo
About Leo Motors
Headquartered in Hanam City, Gyeonggi-do, Republic of Korea, Leo
Motors, Inc., a Nevada corporation, is currently engaged in the
research and development of multiple products, prototypes and
conceptualizations based on proprietary, patented and patent
pending electric power generation, drive train and storage
technologies.
In 2011, the Company determined its investment in Leo B&T Inc. an
investment account was impaired and recorded an expense of
$4.5 million. During the 2012 year the Company had a net non
operating income largely from the result of the forgiveness of
debt for $1.3 million.
Leo Motors reported a net loss of US$4.49 million on US$4.29
million of revenues for the year ended Dec. 31, 2015, compared to
a net loss of US$4.48 million on US$693,000 of revenues for the
year ended Dec. 31, 2014.
As of June 30, 2016, Leo Motors had US$7.42 million in total
assets, US$6.1 million in total liabilities and US$1.30 million
in total equity.
LUCAS ENERGY: Receives Acceptance Of Compliance Plan From NYSE MKT
------------------------------------------------------------------
Lucas Energy, Inc. announced that on Oct. 4, 2016, the NYSE MKT LLC
granted and accepted the Company's compliance plan dated Aug. 21,
2016.
The Company now has until Jan. 21, 2018, to regain compliance with
NYSE MKT continued listing standards as set forth in Section
1003(a)(ii) and (iii) of the NYSE MKT Company Guide as related to
its financial condition as reported on March 31, 2016. At or
before Jan. 21, 2018, the Company must either be in compliance or
must have made progress that is consistent with the accepted Plan
during that period.
In order to maintain its listing on the Exchange, the Exchange has
requested that the Company provide quarterly updates to the
Exchange concurrent with its interim and annual Securities and
Exchange Commission (SEC) filings. Failure to meet the
requirements to regain compliance could result in the initiation of
delisting proceedings.
"We are pleased to have received the Plan acceptance from the
Exchange and look forward to the opportunity to demonstrate our
ability to execute on our strategic initiatives," said Anthony C.
Schnur, Lucas' chief executive officer.
The Company also announced that Lucas' Board of Directors appointed
Paul Pinkston to principal financial officer, treasurer and
secretary of the Company effective Sept. 29, 2016. Mr. Pinkston
previously served as chief accounting officer since August of 2016.
Mr. Schnur, who held the positions of chief financial officer and
principal financial officer in interim capacities, will remain
chief executive officer and a member of the Board of Directors.
About Lucas Energy
Based in Houston, Texas, Lucas Energy (NYSE MKT: LEI) --
http://www.lucasenergy.com/-- is a growth-oriented, independent
oil and gas company engaged in the development of crude oil,
natural gas and natural gas liquids in the Hunton formation in
Central Oklahoma in addition to the Austin Chalk and Eagle Ford
formations in South Texas.
Lucas Energy reported a net loss of $25.4 million for the year
ended March 31, 2016, compared to a net loss of $5.12 million for
the year ended March 31, 2015.
As of June 30, 2016, Lucas Energy had $14.7 million in total
assets, $12.9 million in total liabilities and $1.82 million in
total stockholders' equity.
Hein & Associates LLP, in Houston, Texas, issued a "going concern"
qualification on the consolidated financial statements for the year
ended March 31, 2016, citing that the Company has incurred
significant losses from operations and had a working capital
deficit of $9.6 million at March 31, 2015. These factors raise
substantial doubt about the Company's ability to continue as a
going concern.
LURA DEE KIRKLAND: Unsecureds To Recover 100%, With Interest
------------------------------------------------------------
Lura Dee Kirkland filed with the U.S. Bankruptcy Court for the
Western District of Texas a combined disclosure statement and plan
of reorganization dated Oct. 3, 2016.
The Plan proposes that unsecured claimants will receive 100%, with
interest, of their allowed claims. The Debtor believes that her
continued ownership and operation of Kirkland Bros., Inc., is
critical to the financial success of the Plan, in part because it
is the sole source of income by which she will be able to make the
required Plan Payments. For this reason, the Debtor urges all
creditors to vote in favor of the Plan as the best opportunity for
the full recovery on claims against the Debtor.
The Plan will be funded by the Debtor's income received from
Kirkland Bros. through its continued operations and funds received
from leasing and selling its trucks and trailers.
The Disclosure Statement is available at:
http://bankrupt.com/misc/txwb16-70027-60.pdf
The Plan was filed by the Debtor's counsel:
Todd J. Johnston, Esq.
MCWHORTER, COBB AND JOHNSON, L.L.P.
1722 Broadway (79401)
P.O. Box 2547
Lubbock, Texas 79408
Tel: (806) 762-0214
Fax: (806) 762-8014
Lura Dee Kirkland owns and operates a business which leases and
sells trucks and trailers. Her company, Kirkland Bros., Inc., has
a fleet of trucks that are leased to various drivers, often with a
right to purchase same. In addition, Kirkland Bros. sells trucks
and trailers. Ms. Kirkland operates her business primarily from
her home in Midland, Texas. She has a location of business in
Houston, Texas.
The Debtor sought Chapter 11 protection (Bankr. W.D. Tex. Case No.
16-70027) on Feb. 25, 2016.
MAGNO TIRE: Disclosures OK'd; Plan Confirmation Hearing on Nov. 30
------------------------------------------------------------------
The Hon. Mildred Caban Flores of the U.S. Bankruptcy Court for the
District of Puerto Rico has approved Magno Tire Center, Inc.'s
disclosure statement dated Aug. 5, 2016.
A hearing for the consideration of confirmation of the Debtor's
plan of reorganization will be held on Nov. 30, 2016, at 9:00 a.m.
Magno Tire Center, Inc., sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. D.P.R. Case No. 16-00074) on Jan. 11,
2016.
The case is assigned to Judge Mildred Caban Flores. The Debtor is
represented by Eduardo J. Mayoral Garcia, Esq.
MARSH LAND: Case Summary & 10 Unsecured Creditors
-------------------------------------------------
Debtor: Marsh Land and Livestock, Inc.
94 Otter Creek Road
PO Box 167
Reserve, MT 59258
Case No.: 16-60999
Chapter 11 Petition Date: October 7, 2016
Court: United States Bankruptcy Court
District of Montana (Butte)
Debtor's Counsel: James A Patten, Esq.
PATTEN PETERMAN BEKKEDAHL
Suite 300, The Fratt Bldg
2817 2nd Ave N
Billings, MT 59101
Tel: (406) 252-8500
Fax: (406) 294-9500
E-mail: apatten@ppbglaw.com
Total Assets: $2.78 million
Total Liabilities: $5.29 million
The petition was signed by Todd Marsh, president.
A copy of the Debtor's list of 10 unsecured creditors is available
for free at http://bankrupt.com/misc/mtb16-60999.pdf
MATCHLESS GROUP: Unsecureds To Recoup 100% Under Ch. 11 Plan
------------------------------------------------------------
Matchless Group LLC filed with the U.S. Bankruptcy Court for the
Middle District of Tennessee a disclosure statement concerning the
Debtor's plan of reorganization dated Oct. 3, 2016.
Under the Plan, general unsecured creditors will receive 100% of
their allowed claims.
About 100% of insurance funds on hand on the first day of the month
following confirmation of the plan will be distributed pro rata to
unsecured creditors with valid final claims. Currently the
escrowed account is holding $282,196. About $15,000 will be
distributed pro rata every three months to unsecured creditors
commencing on the first day of the fourth month following
confirmation of the Plan. All funds on hand above a monthly
operating budget of $50,000 will be distributed pro rata every
three months to unsecured creditors commencing on the first day of
the fourth month following confirmation of the Plan.
Payments and distributions under the Plan will be funded by the net
income from Debtor's ongoing business.
The Disclosure Statement is available at:
http://bankrupt.com/misc/tnmb15-08796-90.pdf
About Matchless Group
Headquartered in Pleasant View, Tennessee, Matchless Group LLC dba
Matchless Mini, dba Matchless Wiring is a limited liability company
specializing in the production and sale of wiring products to other
businesses. It is a business to business wholesaler. The Debtor
started in Pleasant View on Oct. 5, 2006, as H & B Group L.L.C.
(for Keith Harris and Will Barnett). The name changed to Matchless
Group LLC on Nov. 3, 2008.
The Debtor filed for Chapter 11 bankruptcy protection (Bankr. M.D.
Tenn. Case No. 15-08796) on Dec. 9, 2015, 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 William
Russell Mosier, Manager of Matchless Group LLC.
Judge Randal S. Mashburn presides over the case.
David Foster Cannon, Esq., at the Law Office of David F. Cannon
serves as the Debtor's bankruptcy counsel.
MBTI OF PUERTO RICO: Case Summary & 20 Largest Unsecured Creditors
------------------------------------------------------------------
Debtor: MBTI of Puerto Rico, Inc.
Ponce De Leon Avenue PDA 18 1/2
San Juan, PR 00907-3917
Case No.: 16-08091
Type of Business: The Company's line of business includes schools
offering data processing courses or training in
computer programming and in computer and
computer peripheral equipment operation,
maintenance, and repair.
Chapter 11 Petition Date: October 7, 2016
Court: United States Bankruptcy Court
District of Puerto Rico (Old San Juan)
Judge: Hon. Edward A Godoy
Debtor's Counsel: Charles Alfred Cuprill, Esq.
CHARLES A CUPRILL, PSC LAW OFFICES
356 Calle Fortaleza
Second Floor
San Juan, PR 00901
Tel: 787 977-0515
E-mail: cacuprill@cuprill.com
Total Assets: $12.99 million
Total Debts: $16.07 million
The petition was signed by Barbara Alozo Vila, president.
Debtor's List of 20 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Adrenaline Advertising Corp. Advertising $983,479
PO Box 16262 Services
San Juan, PR
00908-63262
Tel: 787-908-1000
Autoridad De Energia Electrica Electric Power $134,142
PO Box 363508 Service
San Juan, PR
00936-3508
Tel: 787-521-3434
Concorde Metro Seguros LLC Rent $112,987
COOP de Ahorro Y Credito De Students Loan $1,058,868
Barranquitas with Recourse
PO Box 686
Barranquitas, PR 00794
Tel: 787-857-3500
Data Access Network $59,682
Maintenance
Services
Del Rio Trading and Beauty $108,732
Beaty Supply Products
Del Valle and Asoc Corp. Accounting $48,186
and Auditing
Services
Department of Treasury of Payroll Taxes $260,000
Puerto Rico
PO Box 9024140
Office 424 B
San Juan, PR
00902-4140
First Security Millenium Corp Security Services $67,934
HLB Parissi Accounting Services $45,636
Internal Revenue Service Corporate Income $264,481
PO Box 7346 Tax
Philadelphia, PA
19101-7346
Juan Carlos Inc. Transportaton $202,513
Services
Mercedes Benz Financial Vehicle Loan $37,799
Services
Nalditos Bus Line Inc. Transportation $175,480
Services
Oriental Bank Line of Credit $1,975,179
PO Box 195115
San Juan, PR
00919-5115
Tel: 1-877-541-5739
PRLP Properties I LLC Rent $66,360
Transporte Diaz Inc. Transportation $599,605
Num 60 Hacienda Services
Primavera
Cidra, PR 00739
Tel: 787-509-7100
Transporte Escolar Gil Inc. Transportation $114,900
Services
Triple-S Salud Health $159,963
Insurance
True Guard Security Inc. Security Services $107,902
MENCO PACIFIC: Taps Jeffrey S. Shinbrot as Legal Counsel
--------------------------------------------------------
Menco Pacific, Inc. seeks approval from the U.S. Bankruptcy Court
for the Central District of California to hire Jeffrey S. Shinbrot,
APLC.
Shinbrot will serve as Menco's legal counsel in connection with its
Chapter 11 case. The services to be provided by the firm include
advising Menco regarding its rights and duties as a debtor, and
preparing its Chapter 11 plan of reorganization.
Jeffrey Shinbrot, Esq., the attorney designated to represent Menco,
will be paid an hourly rate of $425 while the firm's paralegals
will be paid $150 per hour.
In a court filing, Mr. Shinbrot disclosed that the firm neither
holds nor represents any interest adverse to Menco's bankruptcy
estate or its creditors.
The firm can be reached through:
Jeffrey S. Shinbrot, Esq.
Jeffrey S. Shinbrot, APLC
8200 Wilshire Boulevard, Suite 400
Beverly Hills, CA 90211
Tel: (310) 659-5444
Fax: (310) 878-8304
Email: jeffrey@shinbrotfirm.com
About Menco Pacific
Menco Pacific, Inc. sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. C. D. Calif. Case No. 16-12791) on
September 26, 2016. The petition was signed by Oscar Ruben
Mendoza, president.
The case is assigned to Judge Maureen Tighe.
At the time of the filing, the Debtor estimated its assets and
liabilities at $1 million to $10 million.
MICHAEL BUESCHING: Court Questions Plan Feasibility
---------------------------------------------------
Bankruptcy Judge Mark S. Wallace in Santa Ana, Calif., tossed the
disclosure statement filed in support of the Plan of Reorganization
of debtor Michael Buesching.
The Court sustained the United States Trustee's Objection to the
disclosure statement, and directed the Debtor to file and serve a
revised disclosure statement and plan by Jan. 31, 2017.
At the Sept. 28, 2016 hearing on the Debtor's Motion for Approval
of the Disclosure Statement, the Court questioned the feasibility
of the Plan after the Internal Revenue Service's priority claim and
its general unsecured claim are taken into account, which will
likely raise the Debtor's plan payments by more than $1,900 per
month. The Debtor's budget as currently stated does not appear to
permit payments of this magnitude.
As reported by the Troubled Company Reporter, under the Plan,
holders of Class 6(b) - Other General Unsecured Claims will be paid
100% of their allowed claims with interest at the rate of 3% per
annum, in equal monthly installments over five years.
The Debtor intends to make the payments required under the Plan
from:
a. available cash which the Debtor projects to be $10,000 by
the Effective Date;
b. future monthly disposable income estimated at $500, to be
available to creditors for the five-year period after the
confirmation. This is based on the monthly income of
$12,204 and expenses of $12,000 as set forth in the
Debtor's declarations of current/postpetition income and
expenses prepared as of Aug. 10, 2016. This projection is
consistent with (i) the Debtor's average monthly income
for the six months prior to this case of $9,232 as set
forth in the Debtor's statement of current monthly income
filed with the Court and (ii) average monthly income of
$9,232 and average monthly expenses (excluding
professional expenses and fees incurred in this case) of
$8,512 during the six months since the Petition Date; and
c. the Debtor's income and the Debtor's spouse's income.
The Disclosure Statement is available at:
http://bankrupt.com/misc/cacb16-10556-68.pdf
Michael Buesching filed for Chapter 11 bankruptcy protection
(Bankr. C.D. Cal. Case No. 16-10556) on Feb. 12, 2016. Michael A
Wallin, Esq., at Slater Hersey And Lieberman LLP, serves as the
Debtor's bankruptcy counsel.
MICHAEL ISAIAS RODRIGUEZ: Whitney Bank's Bid to Dismiss Suit OK'd
-----------------------------------------------------------------
Judge Elizabeth W. Magner of the United States Bankruptcy Court for
the Eastern District of Louisiana granted Whitney Bank's Motion to
Dismiss the adversary case captioned MICHAEL ISAIAS RODRIGUEZ, JR.,
Plaintiff, v. WHITNEY BANK, Defendant, Adversary No. 16-1014
(Bankr. E.D. La.), after finding that the adversary proceeding is
barred by res judicata.
Judge Magner could not find that the Complaint is without merit
thus denied Whitney's request for attorney's fees.
The Complaint seeks to annul the Whitney Judgment on the basis that
Whitney failed to refinance the loan despite an offer to do so,
thereby allowing the Note to mature and giving Mr. Rodriguez no
alternative but to sign the Forbearance Agreement. Mr. Rodriguez
alleges that despite making monthly payments as required by the
Forbearance Agreement, Whitney contacted him about past due
payments and charged excessive fees and late charges. The last
monthly payment tendered to Whitney by Mr. Rodriguez was in April
2014. Whitney filed suit on November 3, 2014, resulting in the
Whitney Judgment on January 20, 2015.
Mr. Rodriguez filed suit against Whitney on March 9, 2016. He
alleges that he did not receive notice of preliminary default. Mr.
Rodriguez also alleges that while reviewing the Court record in
November 2015, he discovered that Whitney failed to provide him
with loan modification disclosures required by the Truth-In-Lending
Act and fraudulently concealed those documents when it filed its
Petition for Executory Process. Mr. Rodriguez further alleges that
Whitney forged his signature on Loan Modification Agreements dated
October, 7, 2008, and April 15, 2011.
Whitney seeks to dismiss the case on the following grounds: (1) res
judicata; (2) failure to state a basis for the annulment of the
Judgment; (3) peremption pursuant to La. C.C.P. Art. 2004; (4) lack
of standing; (5) judicial estoppel; and (6) terms of the
Forbearance Agreement.
The bankruptcy case is IN RE: MICHAEL ISAIAS RODRIGUEZ, JR. SHANNON
CASEY RODRIGUEZ, SECTION A CHAPTER Debtor(s), Case No. 15-11312
(Bankr. E.D. La.).
A full-text copy of the Reasons for Decision dated September 13,
2016 is available at https://is.gd/YQqWYn from Leagle.com.
Whitney Bank, Defendant, is represented by David F. Waguespack,
Esq. -- waguespack@carverdarden.com -- Carver, Darden, et al.
MOHSEN MEHRTASH: Unsecureds To Recoup 100% Under Plan
-----------------------------------------------------
Mohsen Mehrtash filed a motion asking the U.S. Bankruptcy Court for
the Central District of California to approve the Debtor's
disclosure statement in support of the plan of reorganization.
A hearing to consider the motion will be held on Nov. 9, 2016, at
10:00 a.m.
Class 6(a) General Unsecured Creditors -- with allowed claims of
$100 or who elect to reduce the allowed claim to $100 -- will
receive a single payment equal to 100% of its allowed claim on, or
as soon as practicable after, the Effective Date of the Plan.
Class 6(b) Other General Unsecured Creditors will be paid 0.00% of
their allowed claims.
The Debtor projects $25,000 cash will be available on the Effective
Date, which will be the source of payments required under the Plan.
The Debtor also estimates that projected monthly disposable income
available to the creditors for the five-year period following the
confirmation will be $600,000, based on the monthly income of
$16,014.36 and expenses of $5,754.
The Disclosure Statement is available at:
http://bankrupt.com/misc/cacb16-11039-62.pdf
Mohsen Mehrtash filed for Chapter 11 bankruptcy protection (Bankr.
C.D. Cal. Case No. 16-11039) on March 11, 2016. Anerio V Altman,
Esq., at Lake Forest Bankruptcy serves as the Debtor's bankruptcy
counsel.
MOSAIC MANAGEMENT: Taps Erwin Legal as Special Counsel
------------------------------------------------------
Mosaic Management Group, Inc. seeks approval from the U.S.
Bankruptcy Court for the Southern District of Florida to hire Erwin
Legal PLC as special counsel.
The firm will provide legal advice to Mosaic Management and its
affiliates on issues concerning life settlements and life insurance
policies.
Christopher Erwin, Esq., the attorney designated to represent the
Debtors, will be paid an hourly rate of $475. Meanwhile, the
firm's associates and paraprofessionals will be paid $350 per hour
and $125 per hour, respectively.
In a court filing, Mr. Erwin disclosed that his firm does not hold
or represent any interests adverse to the Debtors.
The firm can be reached through:
Christopher Erwin, Esq.
Erwin Legal PLC
47 Discovery, Suite 160
Irvine, CA 92618
Phone: (949) 429-2460
Fax: (949) 429-2461
Email: info@erwinlegalpc.com
About Mosaic Management Group
Mosaic Management Group, Inc. and its affiliates sought protection
under Chapter 11 of the Bankruptcy Code (Bankr. S. D. Fla. Lead
Case No. 16-20833) on August 4, 2016. The petitions were signed by
Charles Thomas Ryals, president and chief executive officer.
Judge Erik P. Kimball presides over the case. Leslie Gern Cloyd,
Esq., at Berger Singerman LLP, serves as bankruptcy counsel.
Mosaic Management Group, Inc. estimated assets at $0 to $50,000 and
liabilities at $50,000 to $100,000.
Mosaic Alternative Assets Ltd. estimated assets at $50 million to
$100 million and liabilities at $1 million to $10 million.
MUELLER & DRURY: Bank of America To Get $10K on Effective Date
--------------------------------------------------------------
Mueller & Drury Real Estate, L.L.C., filed with the U.S. Bankruptcy
Court for the District of Arizona a second amended disclosure
statement for the Debtor's Chapter 11 plan of reorganization.
Under the Plan, holders of allowed Class 5 - General Unsecured
Claims, with the exception of Bank of America's unsecured claim,
will be paid in full on the Effective Date. Bank of America will
receive $10,000 on the Effective Date in full satisfaction of Bank
of America's allowed Class 5 Claim. Bank of America consents to
this treatment. The Class 5 Claims will not include any interest
charges, fees, or other costs incurred or assessed after the
Petition Date through and including the Effective Date and
thereafter. Class 5 is unimpaired.
The Plan will be funded by the Debtor's post-petition disposable
income and a new value contribution of $16,000 being provided by
the Debtor's members, or a value sufficient to pay General
Unsecured Claims in full (not including Bank of America, which will
receive $10,000 towards its Class 5 General Unsecured Claim). The
Debtor will act as the Disbursing Agent under the Plan
The Second Amended Disclosure Statement is available at:
http://bankrupt.com/misc/azb15-12258-68.pdf
About Mueller & Drury Real Estate
Mueller & Drury Real Estate, L.L.C., sought protection under
Chapter 11 of the Bankruptcy Code (Bankr. D. Ariz. Case No.
15-12258) on Sept. 24, 2015. The petition was signed by Doug
Drury, member.
At the time of the filing, the Debtor disclosed $900,000 in assets
and $1.56 million in liabilities.
NAVISTAR INTERNATIONAL: Amends ABL Facility with Bank of America
----------------------------------------------------------------
Navistar, Inc. (the "Borrower") has entered into an Amendment No. 4
to the Amended and Restated ABL Credit Agreement, dated as of Aug.
17, 2012, as amended, among the Borrower, the Lenders from time to
time party thereto, and Bank of America, N.A., as administrative
agent, pursuant to which certain provisions were modified to permit
a $30,000,000 sub-basket to incur PMSI (Purchase Money Security
Interest) liens on certain Navistar, Inc. inventory. The ABL
Amendment had no impact on the aggregate commitment level under the
ABL Credit Agreement, which remains at $175,000,000.
A full-text copy of the Amended Credit Agreement is available for
free at https://is.gd/JJbTov
About Navistar International
Navistar International Corporation (NYSE: NAV) --
http://www.navistar.com/-- is a holding company whose
subsidiaries and affiliates subsidiaries produce International(R)
brand commercial and military trucks, MaxxForce(R) brand diesel
engines, IC Bus(TM) brand school and commercial buses, Monaco RV
brands of recreational vehicles, and Workhorse(R) brand chassis
for motor homes and step vans. It also is a private-label
designer and manufacturer of diesel engines for the pickup truck,
van and SUV markets. The Company also provides truck and diesel
engine parts and service. Another affiliate offers financing
services.
As of July 31, 2016, Navistar had $5.71 billion in total assets,
$10.85 billion in total liabilities and a total stockholders'
deficit of $5.13 billion.
* * *
In the July 22, 2015, edition of the TCR, Moody's Investors Service
affirmed Navistar International Corporation's Corporate Family
Rating at B3 and assigned a Ba3 rating to Navistar, Inc.'s new
$1.04 billion senior secured term loan due 2020.
Navistar carries a 'CCC' Issuer Default Ratings from Fitch
Ratings.
As reported by the TCR on Sept. 13, 2016, S&P Global Ratings placed
its ratings, including the 'CCC+' corporate credit ratings, on
Navistar International Corp. and its subsidiary Navistar Financial
Corp. on CreditWatch with positive implications.
NAVISTAR INTERNATIONAL: Closes $300M Wholesale Funding Transaction
------------------------------------------------------------------
A subsidiary of Navistar Financial Corporation closed a $300
million, two-year, 144-A securitized dealer floor plan transaction
to support International Truck and IC Bus dealer inventory funding.
The transaction will replace a $250 million deal from November
2014 that matures in October 2016, after which NFC will have
approximately $1.05 billion in total wholesale funding capacity.
"This transaction should provide adequate liquidity to support the
company's wholesale portfolio," said Bill McMenamin, president,
NFC. "Demand for the issue was very strong and allowed us to
upsize the transaction from the $250 million originally planned to
$300 million."
NFC, an affiliate of Navistar International Corporation (NYSE:
NAV), provides financing programs and services tailored to support
equipment financing needs for International Truck and IC Bus
dealers and customers.
"The quality of our portfolio and the strength of our dealer
network have earned the ongoing confidence and support of our
investors," added McMenamin.
Additional information is available for free at:
https://is.gd/uxIaQQ
About Navistar International
Navistar International Corporation (NYSE: NAV) --
http://www.navistar.com/-- is a holding company whose
subsidiaries and affiliates subsidiaries produce International(R)
brand commercial and military trucks, MaxxForce(R) brand diesel
engines, IC Bus(TM) brand school and commercial buses, Monaco RV
brands of recreational vehicles, and Workhorse(R) brand chassis
for motor homes and step vans. It also is a private-label
designer and manufacturer of diesel engines for the pickup truck,
van and SUV markets. The Company also provides truck and diesel
engine parts and service. Another affiliate offers financing
services.
As of July 31, 2016, Navistar had $5.71 billion in total assets,
$10.85 billion in total liabilities and a total stockholders'
deficit of $5.13 billion.
* * *
In the July 22, 2015, edition of the TCR, Moody's Investors Service
affirmed Navistar International Corporation's Corporate Family
Rating at B3 and assigned a Ba3 rating to Navistar, Inc.'s new
$1.04 billion senior secured term loan due 2020.
Navistar carries a 'CCC' Issuer Default Ratings from Fitch
Ratings.
As reported by the TCR on Sept. 13, 2016, S&P Global Ratings placed
its ratings, including the 'CCC+' corporate credit ratings, on
Navistar International Corp. and its subsidiary Navistar Financial
Corp. on CreditWatch with positive implications.
NET DATA: Disclosures OK'd; Plan Confirmation Hearing on Nov. 30
----------------------------------------------------------------
The Hon. Sheri Bluebond of the U.S. Bankruptcy Court for the
Central District of California has approved Net Data Centers,
Inc.'s first amended disclosure statement describing the Debtor's
first amended plan of reorganization.
A plan confirmation hearing is set for November 30, 2016 at 2:00
p.m. Objections to the plan confirmation must be filed by Nov. 14,
2016.
Voting ballots must be returned so as to be actually received by
the Debtor's counsel not later than Nov. 14, 2016.
The Debtor will file and serve a confirmation brief and evidence
supporting confirmation under Section 1129 of the U.S. Bankruptcy
Code, a plan ballot tabulation in the form of Local Form F-3017 and
argument and evidence supporting the priming financing as proposed
under the Plan not later than Nov. 23, 2016.
The Debtor will file and serve any motions under Federal Rule of
Bankruptcy Procedure 9019 related to the plan confirmation not
later than Nov. 9, 2016.
The Debtor is represented by:
Paul A. Beck, Esq.
Lewis R. Landau, Esq.
Law Offices of Paul A. Beck
A Professional Corporation
13701 Riverside Drive, Suite 202
Sherman Oaks, California 91423
Tel: (818) 501-1141
Fax: (818) 501-1241
E-mail: pab@pablaw.org
lew@landaunet.com
About Net Data Centers
Net Data Centers, Inc., filed a Chapter 11 bankruptcy petition
(Bankr. C.D. Cal. Case No. 15-12690) on Feb. 23, 2015. Pervez P.
Delawalla, the president and CEO, signed the petition. The Hon.
Sheri Bluebond is assigned to the case.
The Debtor disclosed, in its amended schedules, $9,566,908 in
assets and $13,352,373 in liabilities. In its original schedules,
the Debtor disclosed $9,110,070 in assets and $5,236,687 in
liabilities.
The U.S. trustee appointed three creditors to serve on the Official
Committee of Unsecured Creditors. The Committee is represented by
Buchalter Nemer, APC.
NETA HATHAWAY: Trustee Selling Assets to Stability for $820K
------------------------------------------------------------
Timothy W. Nelson, Chapter 11 Trustee of Neta Gallaway Hathaway,
asks the U.S. Bankrupcy Court for the District of Nevada to
authorize the sale of 449 out of the 3,717 membership units
("Assets") in Stability, LLC, to existing Stability members for
$1,825 per unit.
A hearing on the Motion is set for Nov. 15, 2016 at 2:00 p.m.
Specifically, the Trustee seeks authority to sell 7 units to
Margaret Shirley Gilman, 4 units to Bill Halladay, 15 units to
Charles W. Halladay, 73 units to the Dalena and Thomas Hathaway
Trust, 50 units to John K. Hathaway, 30 units to Karen L. Hathaway,
10 units to Nancy J. Hathaway, 75 units to the Patricia Y. Hathaway
Trust, 75 units to Patricia Y. Hathaway Bypass Trust, 10 units to
Sterling Hathaway, 50 units to Steven K. Hathaway and Stephanie P.
Hathaway, and 50 units to Charles E. Michaels or each of
his/her/its designee or respective successors or assigns
("Purchasers"), for a total sale of 449 Stability Units. The
purchase price is the sum of $819,425 cash which is currently being
held in the Trustee's trust account.
The Purchasers agree to purchase from the Trustee and the Trustee
agrees to sell the Assets for the sum of $819,425 cash
($1,825/Stability unit) which has already been turned over to the
Trustee and is being held in his trust account ("Agreement"). The
members' interests in Stability cannot be publically traded.
Stability is a closely held family controlled company, and any
interest in Stability may only be transferred from one Stability
member to another Stability member. All of the aforementioned
Purchasers are Stability unitholders.
Overbidding will be allowed at the hearing on approval of the
motion, to the extent that other Stability membership unitholders
come forward with an overbid. The membership interests (units) in
Stability cannot be publically traded. Stability is a closely held
family controlled company, and any interest in Stability may only
be transferred from one Stability member to another Stability
member.
Any overbidding will be for the purchase of the Assets. There has
been no order sought or obtained dictating the manner in which
overbidding may be conducted. The Court may consider overbids on
terms similar to the Agreement, or different from the Agreement,
for cash, and for bid increments determined in the Court's
discretion at the time of the hearing. The Trustee will seek
approval of the sale that is in the best interest of the estate.
The Trustee has conducted an investigation of potential secured
claims through the Nevada Secretary of State, which has disclosed
that there are no perfected security interests
in the Assets.
The Trustee has conducted a complete investigation of the assets of
the Estate and has determined that the sale of Assets is in the
best interest of creditors. The Trustee has determined that while
the units in Stability cannot be publically traded, it has been the
usual practice for Stability to redeem and exchange Stability units
one-for-one with stock in LAACO, Ltd. under limited circumstances.
LAACO stock may be publically traded, or sold. The sales price for
LAACO stock has ranged from approximately $1,585 to $2,150 per
share over the past 52 weeks. LAACO stock is very thinly traded.
Accordingly, the Trustee believes the sale price of $1,825 per
Stability unit is representative of each unit's fair market value.
Stability members that may have an interest in purchasing the
Assets have been notified of the proposed sale and have been given
an opportunity to purchase the Assets.
To the Trustee's knowledge, the Purchasers have not entered into
any agreements with management, key employees of Stability, or the
Debtor. The proposed sale does not contemplate the assumption or
assignment of any executory contracts.
Counsel for the Trustee:
Alan R. SMith, Esq.
LAW OFFICES OF ALAN R. SMITH
505 Ridge Street
Reno, NV 89501
Telephone: (775) 786-4579
Facsimile: (775) 786-3066
E-mail: mail@asmithlaw.com
Neta Gallaway Hathaway sought Chapter 11 protection (Bankr. D. Nev.
Case No. 12-52067) on Aug. 31, 2012. Judge Bruce T. Beesley is
assigned to the case.
NEW STREAMWOOD: Allowed to Use Waterfall Olympic Cash Until Nov. 4
------------------------------------------------------------------
Judge Timothy A. Barnes of the U.S. Bankruptcy Court for the
Northern District of Illinois authorized New Streamwood Lanes,
Inc., to use the cash collateral of Waterfall Olympic Master Fund
Grantor Trust, Series II on an interim basis, from Oct. 5, 2016
through Nov. 4, 2016.
The Debtor owns the real property commonly known as 1232 S. Irving
Park Road in Streamwood, Illinois. The Debtor owns and operates a
bowling alley at the Real Estate.
The Debtor is indebted to Waterfall Olympic in the amount of
$3,025,305,05 as of the petition date. Waterfall Olympic was
granted, among others, security interests in:
(a) the Commercial Assets, including all personal property;
(b) the Real Estate; and
(c) any and all rents, revenues, income, profits, and proceeds
generated from the Real Estate and Commercial Assets.
The Debtor related that it paid Waterfall Olympic the sum of
$55,000 in order to negotiate a forbearance agreement, and that the
forbearance agreement was not finalized. The Debtor further
related that the $55,000 was considered as additional adequate
protection for Waterfall Olympic's interests in the Pre-petition
Collateral, such funds to be applied by Waterfall Olympic to the
negative tax escrow in reimbursement for real estate taxes paid by
Waterfall Olympic pre-petition for the Real Estate.
The Debtor told the Court that in the absence of the use of Cash
Collateral, it does not have sufficient sources of working capital
and financing to operate the Real Estate or business operations in
the ordinary course of business or operate its business and
maintain its property in accordance with state and federal law.
The approved Budget for October 2016, provides for total expenses
in the amount of $79,710.
Waterfall Olympic was granted replacement liens on all the Debtor's
assets. The Debtor was directed to make monthly adequate
protection payments to Waterfall Olympic in the amount of
$6,187.50.
A hearing on the Debtor's continued use of cash collateral is
scheduled on Nov. 2, 2016 at 10:30 a.m.
A full-text copy of the Interim Order, dated Oct. 6, 2016, is
available at
http://bankrupt.com/misc/NewStreamwoodLanes2014_1420808_284.pdf
About New Streamwood Lanes
New Streamwood Lanes, Inc., filed a chapter 11 petition (Bankr.
N.D. Ill. Case No. 14-20808) on June 2, 2014. The petition was
signed by Terence Vaughn, president. The Debtor is represented by
Ryan Kim, Esq., at Inseed Law PC. The case is assigned to Judge
Benjamin Godgar. The Debtor estimated assets and liabilities at $1
million to $10 million at the time of the filing.
NORDIC INTERIOR: U.S. Trustee Forms Three-Member Committee
----------------------------------------------------------
William K. Harrington, the U.S. Trustee for Region 2, on Oct. 6
appointed three creditors of Nordic Interior, Inc., to serve on the
official committee of unsecured creditors.
The committee members are:
(1) New York City District Council of Carpenters Benefit Fund
395 Hudson Street
New York, NY 10014
Attn: Luke Powers
Tel: (212) 366-7409
(2) Bomboy Incorporated
1625 E. Race Street
Allentown, PA 18109
Attn: Paula C. Bomboy
Tel: (610) 266-1553
(3) Admat Construction Inc.
58-49 61st Street
Maspeth, NY 11378
Attn: Marta Skyorzynski
Tel: (347) 610-3823
Official creditors' committees have the right to employ legal and
accounting professionals and financial advisors, at a debtor's
expense. They may investigate the debtor's business and financial
affairs. Importantly, official committees serve as fiduciaries to
the general population of creditors they represent.
About Nordic Interior
Nordic Interior, Inc., filed a Chapter 11 bankruptcy petition
(Bankr. E.D.N.Y. Case No. 16-43163) on July 18, 2016. The case is
pending before Judge Elizabeth S. Stong. Rosen & Associates,
P.C.,
serves as counsel to the Debtor.
Nordic Interior, Inc., was founded in 1973 as a drywall and small
woodworking company. At the time of the bankruptcy filing, the
Company had approximately 50 employees, 35 of whom are carpenters
and project managers who are subject to a collective bargaining
agreement with the Carpenters' Union.
NORTEL NETWORKS: Creditors Fail to Reach Deal on $7.3-Bil. Money
----------------------------------------------------------------
Peg Brickley, writing for The Wall Street Journal Pro Bankruptcy,
reported that warring national units of defunct Nortel Networks
Corp. have failed to reach a deal on how to divide $7.3 billion
raised in the bankruptcy liquidation of the company, a fallen icon
of the Canadian technology scene.
According to the report, the money has been tied up for years in
court fights, which are set to continue in a federal appeals court
in Philadelphia. Talks continue, according to a letter filed with
the U.S. Third Circuit Court of Appeals, but efforts to settle the
litigation have so far not panned out, the WSJ report said.
Nortel U.S. is preparing once again to go to court against the
Canadian parent company and European creditors, chiefly British
pensioners, the report cited the letter, which was filed on Oct. 7
by one of Nortel U.S.'s lawyers, Derek Abbott.
The federal appeals court in the U.S. is being asked to overturn a
bankruptcy judge's decision on dividing the money on the grounds it
is outside the bounds of the law, the report related.
Nortel's U.S. lawyers set out a schedule of briefing on the appeal,
but left the dates blank, saying they would like to take another
month to try to reach agreement and end the litigation, the report
further related.
The Troubled Company Reporter, on Sept. 8, 2016, citing WSJ,
reported that a settlement could be reached within a month in one
of the longest running and most expensive bankruptcies on record, a
lawyer for Nortel's U.S. unit told an appeals court on Sept. 7,
2016.
"There is progress being made," James Bromley, Esq., lawyer for
Nortel U.S., told the appeals court. "Our hope is that we will be
able to resolve this."
Nortel U.S. has been battling Canadian parent Nortel and British
pensioners over how to divide $7.3 billion raised in the
bankruptcy
liquidation of the onetime telecommunications giant, the report
related. A settlement would break an impasse that has lasted more
than five years, the report further related.
Speaking at a hearing in the Third U.S. Circuit Court of Appeals,
Mr. Bromley said the Nortel combatants will know by Oct. 7 whether
the latest in a long series of mediation efforts will produce a
deal, the report said.
If there is no settlement by Oct. 7, Nortel Canada, Nortel U.S.
and
European creditors will continue the court fights that have, over
the years, pushed the professional fee totals to the $2 billion
mark, the report noted.
About Nortel Networks
Headquartered in Ontario, Canada, Nortel Networks Corporation and
its various affiliated entities provided next-generation
technologies, for both service provider and enterprise networks,
support multimedia and business-critical applications. Nortel did
Networks Limited was the principal direct operating subsidiary of
Nortel Networks Corporation.
On Jan. 14, 2009, Nortel Networks Inc.'s ultimate corporate parent
Nortel Networks Corporation, NNI's direct corporate parent Nortel
Networks Limited and certain of their Canadian affiliates
commenced
a proceeding with the Ontario Superior Court of Justice under the
Companies' Creditors Arrangement Act (Canada) seeking relief from
their creditors. Ernst & Young was appointed to serve as monitor
and foreign representative of the Canadian Nortel Group. That
same
day, the Monitor sought recognition of the CCAA Proceedings in
U.S.
Bankruptcy Court (Bankr. D. Del. Case No. 09-10164) under Chapter
15 of the U.S. Bankruptcy Code.
That same day, NNI and certain of its affiliated U.S. entities
filed voluntary petitions for relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Del. Case No. 09-10138).
In addition, the High Court of England and Wales placed 19 of
NNI's European affiliates into administration under the control of
individuals from Ernst & Young LLP. Other Nortel affiliates have
commenced and in the future may commence additional creditor
protection, insolvency and dissolution proceedings around the
world.
On May 28, 2009, at the request of administrators, the Commercial
Court of Versailles, France, ordered the commencement of secondary
proceedings in respect of Nortel Networks S.A. On June 8, 2009,
Nortel Networks UK Limited filed petitions in U.S. Bankruptcy
Court
for recognition of the English Proceedings as foreign main
proceedings under Chapter 15.
U.S. Bankruptcy Judge Kevin Gross presides over the Chapter 11 and
15 cases. Mary Caloway, Esq., and Peter James Duhig, Esq., at
Buchanan Ingersoll & Rooney PC, in Wilmington, Delaware, serves as
Chapter 15 petitioner's counsel.
In the Chapter 11 case, James L. Bromley, Esq., and Howard S.
Zelbo, Esq., at Cleary Gottlieb Steen & Hamilton, LLP, in New
York,
serve as the U.S. Debtors' general bankruptcy counsel; Derek C.
Abbott, Esq., at Morris Nichols Arsht & Tunnell LLP, in
Wilmington,
serves as Delaware counsel. The Chapter 11 Debtors' other
professionals are Lazard Freres & Co. LLC as financial advisors;
and Epiq Bankruptcy Solutions LLC as claims and notice agent.
The U.S. Trustee appointed an Official Committee of Unsecured
Creditors in respect of the U.S. Debtors.
An ad hoc group of bondholders also was organized. An Official
Committee of Retired Employees and the Official Committee of
Long-Term Disability Participants tapped Alvarez & Marsal
Healthcare Industry Group as financial advisor. The Retiree
Committee is represented by McCarter & English LLP as Delaware
counsel, and Togut Segal & Segal serves as the Retiree Committee.
The Committee retained Alvarez & Marsal Healthcare Industry Group
as financial advisor, and Kurtzman Carson Consultants LLC as its
communications agent.
Several entities, particularly, Nortel Government Solutions
Incorporated and Nortel Networks (CALA) Inc., have material
operations and are not part of the bankruptcy proceedings.
As of Sept. 30, 2008, Nortel Networks Corp. reported consolidated
assets of $11.6 billion and consolidated liabilities of $11.8
billion. The Nortel Companies' U.S. businesses are primarily
conducted through Nortel Networks Inc., which is the parent of
majority of the U.S. Nortel Companies. As of Sept. 30, 2008, NNI
had assets of about $9 billion and liabilities of $3.2 billion,
which do not include NNI's guarantee of some or all of the Nortel
Companies' about $4.2 billion of unsecured public debt.
Since the commencement of the various insolvency proceedings,
Nortel has sold its business units and other assets to various
purchasers. Nortel has collected roughly $9 billion for
distribution to creditors. Of the total, $4.5 billion came from
the sale of Nortel's patent portfolio to Rockstar Bidco, a
consortium consisting of Apple Inc., EMC Corporation,
Telefonaktiebolaget LM Ericsson, Microsoft Corp., Research In
Motion Limited, and Sony Corporation. The consortium defeated a
$900 million stalking horse bid by Google Inc. at an auction. The
deal closed in July 2011.
Nortel has filed a proposed plan of liquidation in the U.S.
Bankruptcy Court. The Plan generally provides for full payment on
secured claims with other distributions going in accordance with
the priorities in bankruptcy law.
The trial on how to divide proceeds among creditors in the U.S.,
Canada, and Europe commenced on Sept. 22, 2014. The question of
how to divide $7.3 billion raised in the international bankruptcy
of Nortel Networks Corp. was answered on May 12, 2015, by two
judges, one in the U.S. and one in Canada.
According to The Wall Street Journal, Justice Frank Newbould of
the
Ontario Superior Court of Justice in Toronto and Judge Kevin Gross
of the U.S. Bankruptcy Court in Wilmington, Del., agreed on the
outcome: a modified pro rata split of the money.
NORTH FORK: Case Summary & 20 Largest Unsecured Creditors
---------------------------------------------------------
Debtor: North Fork Composites LLC
aka Edge Rods LLC
P O Box 2223
Woodland, WA 98674
Case No.: 16-44188
Chapter 11 Petition Date: October 7, 2016
Court: United States Bankruptcy Court
Western District of Washington (Tacoma)
Judge: Hon. Brian D Lynch
Debtor's Counsel: Thomas W Stilley, Esq.
SUSSMAN SHANK LLP
1000 SW Broadway Ste 1400
Portland, OR 97205-3066
Tel: 503-227-1111
E-mail: tstilley@sussmanshank.com
Estimated Assets: $100,000 to $500,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Alex Maslov, manager.
A copy of the Debtor's list of 20 largest unsecured creditors is
available for free at http://bankrupt.com/misc/wawb16-44188.pdf
NUVIRA HOSPITALITY: Rohit Kumar To Be Paid $377K Over 18 Months
---------------------------------------------------------------
Nuvira Hospitality Inc. filed with the U.S. Bankruptcy Court for
the Southern District of Texas a first amended disclosure statement
dated Oct. 3, 2016.
Class 4 General Non-Insider Unsecured Class -- which include Rohit
Kumar, who has an unsecured claim in the amount of $6,800 -- are
impaired under the Plan and be paid their allowed claims in full,
without interest, over 18 months. Monthly payments equal to 1/18
of the allowed claims will commence on the Effective Date and
continue on the same day of the month each month until the allowed
Class 4 Claims are paid in full. Mr. Kumar will be paid $377.78
per month for 18 months.
As reported by the Troubled Company Reporter on Oct. 6, 2016, the
Debtor filed with the Court a small business Chapter 11 plan and
accompanying disclosure statement, which propose that general
non-insider unsecured creditors, classified in Class 4, will
receive a distribution of 100% of their allowed claims, to be paid
in monthly installments over 18 months.
The Amended Disclosure Statement is available at:
http://bankrupt.com/misc/txsb15-80432-48.pdf
Nuvira Hospitality Inc., owner and operator of the Anchor Motel,
filed a Chapter 11 petition (Bankr. S.D. Tex. Case No. 15-80432) on
Nov. 30, 2015, and is represented by H Miles Cohn, Esq., at
Crain, Caton & James, PC.
OMINTO INC: Raises $4 Million in Private Placement
--------------------------------------------------
Ominto, Inc., announced that as of Oct. 5, 2016, it had received
approximately $4 million in gross proceeds through the sale of
approximately 1 million shares of common stock at $4.00 per share
in its private placement to certain investors located outside of
the United States. The shares of common stock were issued under
Regulation S. Proceeds from the private placement are expected to
be used for general corporate and working capital purposes as well
as to fund certain marketing efforts to fuel the Company's future
growth.
About Ominto
Ominto, Inc., was incorporated under the laws of the State of
Nevada on June 4, 1999, as Clamshell Enterprises, Inc., which name
was changed to MediaNet Group Technologies, Inc. in May 2003, then
to DubLi, Inc. on Sept. 25, 2012, and finally to Ominto, Inc. as of
July 1, 2015. The DubLi Network was merged into the Company, as
its primary business in October 2009.
Ominto reported a net loss of $11.7 million for the year ended
Sept. 30, 2015, compared to a net loss of $1.34 million for the
year ended Sept. 30, 2014.
Mayer Hoffman McCann P.C., in Boca Raton, Florida, issued a "going
concern" qualification on the consolidated financial statements for
the year ended Sept. 30, 2015, noting that the Company has suffered
recurring losses from operations and has a net capital deficiency
that raise substantial doubt about its ability to continue as a
going concern.
OPUS MANAGEMENT: Rx Pro Taps Organ Cole as Special Counsel
----------------------------------------------------------
Rx Pro of Mississippi, Inc. d/b/a McDaniel Pharmacy, an affiliate
Debtor of Opus Management Jackson Group, seeks authorization from
the U.S. Bankruptcy Court for the Southern District of Mississippi
to employ Organ Cole LLP as Special Counsel.
Rx Pro requires Organ Cole to represent it and its interests in the
Kendle Litigation from and after the date of the Court approval of
the Debtor's retention of Organ Cole.
Organ Cole will be paid at these hourly rates:
Shawn J. Organ $395.00
Josh Feasel $250.00
Legal assistants $125.00
Organ Cole will also be reimbursed for reasonable out-of-pocket
expenses incurred.
The Debtor has agreed to pay for one-third of the legal fees and
expenses of Organ Cole from and after the date of Court approval of
the Application, with its co-Defendants in the Kendle Lawsuit, WHIG
Enterprises, LLC and M. Chad Barrett, being jointly and severally
responsible for the other two-thirds of the fees and expenses from
and after the date of the Court approval of the Application.
Shawn J. Organ, partner of Organ Cole, 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.
Organ Cole can be reached at:
Shawn J. Organ, Esq.
ORGAN COLE LLP
1330 Dublin Road
Columbus, OH 43215
Tel.: 614.481.0900
Fax: 614.481.0904
Email: sjorgan@organcole.com
Opus Management Group Jackson LLC, et al., sought Chapter 11
protection (Bankr. S.D. Miss. Lead Case No. 16-00297) on Feb. 2,
2016. The Debtor is represented by Thomas M. Hewitt, Esq., at
Butler Snow LLP.
PACIFIC OFFICE: Agrees to Amend $29.4 Million Promissory Notes
--------------------------------------------------------------
Pacific Office Properties, L.P., a Delaware limited partnership of
which Pacific Office Properties Trust, Inc., is the sole general
partner, entered into an amendment with the holders of its
outstanding subordinated promissory notes in the aggregate
principal amount of $29.4 million. Under the amendment, the
holders agreed that the existing notes would be subordinate in
right of payment to the New Note, and the maturity of each of the
existing notes was amended to be coterminous with the maturity of
the New Note.
As previously disclosed, certain of these outstanding promissory
notes, having an aggregate principal amount of $21.1 million, were
issued in 2008 as consideration for having funded certain capital
improvements prior to the completion of our formation transactions
and upon the exercise of an option granted to the Corporation as
part of its formation transactions in 2008. Based on their
respective ownership in the entities holding these promissory
notes, the aggregate principal amount attributable to each of Jay
H. Shidler (the Company's Chairman of the Board), James C. Reynolds
(who beneficially owns approximately 12% of the Corporation's Class
A Common Stock), James R. Ingebritsen (the Corporation's former
chief executive officer), Matthew J. Root (the Corporation's former
chief investment officer) and Lawrence J. Taff (the Corporation's
current chief executive officer and chief financial officer) was
$6.8 million, $6.1 million, $2.7 million, $2.7 million and $2.0
million, respectively. Interests in the remaining $0.8 million are
held by entities controlled by Mr. Reynolds.
The remainder of these outstanding promissory notes, having an
aggregate principal amount of $8.3 million, were issued in 2014 to
settle claims under tax protection agreements relating to the sale
of our First Insurance Center property in 2012. These notes were
issued to the following persons or to entities controlled by such
persons in the following principal amounts: Mr. Shidler ($2.0
million), Mr. Reynolds ($2.7 million), Mr. Ingebritsen ($1.3
million), Mr. Root ($1.3 million) and Mr. Taff ($1.1 million).
About Pacific Office
Pacific Office Properties Trust, Inc., is a real estate investment
trust (REIT). The Company owns and operates primarily office
properties in Hawaii. The Company owns approximately four office
properties, consisting of approximately 1.2 million rentable square
feet and is partner with third-parties in approximately three joint
ventures, holding approximately three office properties, consisting
of approximately seven buildings and approximately one million
rentable square feet (the Property Portfolio). One of its joint
ventures also owns a sports club associated with its City Square
property in Phoenix, Arizona. The Company's Property Portfolio
includes office buildings in Honolulu and Phoenix. The Company is
the sole general partner of its Operating Partnership, Pacific
Office Properties, L.P. The Company holds a long-term ground
leasehold interest in its Waterfront Plaza property.
As of June 30, 2016, Pacific Office had $250 million in total
assets, $383 million in total liabilities and a total deficit of
$132.19 million.
Pacific Office reported a net loss of $14.3 million in 2015
following a net loss of $17.35 million in 2014.
Ernst & Young LLP, in Honolulu, Hawaii, issued a "going concern"
qualification on the consolidated financial statements for the year
ended Dec. 31, 2015, noting that $266 million of the Company's
mortgage loans, which are recorded in Mortgage and other loans,
net, in the consolidated balance sheets, will become due at various
dates in the twelve month period ending Dec. 31, 2016. The
Company's current and projected cash balances are not sufficient to
cover these maturities, which raises substantial doubt about its
ability to continue as a going concern.
PACIFIC OFFICE: Issues $3M Promissory Note to Shidler Equities
--------------------------------------------------------------
Pacific Office Properties, L.P., a Delaware limited partnership of
which Pacific Office Properties Trust, Inc. is the sole general
partner, issued on Sept. 30, 2016, a promissory note in the
principal amount of $3,000,000 to Shidler Equities L.P., a Hawaii
limited partnership controlled by Jay H. Shidler (the Company's
Chairman of the Board), in consideration of a loan in that amount
made by Shidler Equities to the Operating Partnership.
The New Note accrues interest at a rate of 5% per annum, with
interest payable quarterly, subject to the Operating Partnership's
right to defer the payment of interest for any or all periods until
the date of maturity. The stated maturity date for the New Note is
the earlier of (i) Dec. 31, 2016 (or, if later, the maturity date
of indebtedness under the Operating Partnership's credit facility
with First Hawaiian Bank, but in any event not later than Dec. 31,
2017) and (ii) the date on which the Operating Partnership has
fully satisfied, or is released from, any liability under the
Indemnification Agreement, dated as of
Sept. 2, 2009 (as subsequently amended), between the Operating
Partnership and Shidler Equities. Maturity will accelerate upon
the occurrence of an underwritten public offering of at least $75
million of the Corporation's common stock, the sale of all or
substantially all of the Corporation's assets, or the merger or
consolidation of the Corporation with another entity. The New Note
is an unsecured obligation of the Operating Partnership and is
subordinated to all trade obligations incurred in the ordinary
course of business of the Operating Partnership.
About Pacific Office
Pacific Office Properties Trust, Inc., is a real estate investment
trust (REIT). The Company owns and operates primarily office
properties in Hawaii. The Company owns approximately four office
properties, consisting of approximately 1.2 million rentable square
feet and is partner with third-parties in approximately three joint
ventures, holding approximately three office properties, consisting
of approximately seven buildings and approximately one million
rentable square feet (the Property Portfolio). One of its joint
ventures also owns a sports club associated with its City Square
property in Phoenix, Arizona. The Company's Property Portfolio
includes office buildings in Honolulu and Phoenix. The Company is
the sole general partner of its Operating Partnership, Pacific
Office Properties, L.P. The Company holds a long-term ground
leasehold interest in its Waterfront Plaza property.
As of June 30, 2016, Pacific Office had $250 million in total
assets, $383 million in total liabilities and a total deficit of
$132 million.
Pacific Office reported a net loss of $14.3 million in 2015
following a net loss of $17.4 million in 2014.
Ernst & Young LLP, in Honolulu, Hawaii, issued a "going concern"
qualification on the consolidated financial statements for the year
ended Dec. 31, 2015, noting that $266 million of the Company's
mortgage loans, which are recorded in Mortgage and other loans,
net, in the consolidated balance sheets, will become due at various
dates in the twelve month period ending Dec. 31, 2016. The
Company's current and projected cash balances are not sufficient to
cover these maturities, which raises substantial doubt about its
ability to continue as a going concern.
PAMELA FROG: Hires Michael Mahoney as Attorney
----------------------------------------------
Pamela F.R.O.G., LLC, seeks authorization from the U.S. Bankruptcy
Court for the Western District of Michigan to employ Michael S.
Mahoney, P.C., as attorney.
The Debtor requires the Firm to:
(a) represent the Debtor in the Chapter 11 case and to advise
the Debtor as to its rights, duties, and powers as a debtor in
possession;
(b) prepare and file all necessary statements, schedules, and
other documents and to negotiate and prepare one or more plans of
reorganization for the Debtors;
(c) represent the Debtor at all hearings, meeting of
creditors, conferences, trials, and other proceedings in the case;
and,
(d) perform such other legal services as may be necessary in
connection with the case.
The Debtor has entered into a written employment agreement with the
Firm dated September 27, 2016, with respect to the services to be
performed by the attorney and the compensation to be paid to the
attorney.
Michael S. Mahoney, Esq. attorney at law of the Firm, assured the
Court that the firm is a "disinterested person" as the term is
defined in Section 101(14) of the Bankruptcy Code and does not
represent any interest adverse to the Debtors and their estates.
The Firm can be reached at:
Michael S. Mahoney
Michael S. Mahoney, P.C.
912 Centennial Way, Suite 320
Lansing, MI 48917
About Pamela F.R.O.G.
Pamela F.R.O.G., LLC, doing business as Pam's Academy of Champions
filed a chapter 11 petition (Bankr. W.D. Mich. Case No. 16-04965)
on Sept. 28, 2016. The petition was signed by Pamela J.
Eaton-Champion, managing member. The Debtor is represented by
Michael Shawn Mahoney, Esq., at Michael S. Mahoney, P.C. The case
is assigned to Judge John T. Gregg. The Debtor disclosed $332,704
in assets and $1.13 million in liabilities.
PAMELA FROG: Wants Approval to Use Cash Collateral
--------------------------------------------------
Pamela F.R.O.G. asks the U.S. Bankruptcy Court for the Western
District of Michigan for authorization to use cash collateral.
The Debtor is a Michigan Company that holds record title to two
parcels of commercial real property. The Debtor's primary business
involves the operation of a daycare center at the Property.
Bayview Fund Acquisitions, III, LLC held a first priority mortgage
secured by the Debtor's property and has a foreclosure judgement in
the approximate amount of $554,800.59.
The Debtor wants to use cash collateral from the payment of
receipts/revenues to pay for labor, supplies, taxes, insurance,
rent and other ordinary business expenses for the Debtor's
business. The Debtor tells the Court that it will suffer immediate
and irreparable harm if it is not authorized to use cash collateral
to fund the expenses set forth in its proposed Budget. The Debtor
further tells the Court that without such authorization, it will
not be able to protect and maintain its Property.
The Debtor's proposed monthly operating Budget provides for total
expenses in the amount of $41,540.
The Debtor proposes to grant Bayview Fund Acquisitions, III, with a
replacement lien on the Debtor's receivables and projected positive
cash flow. The Debtor further proposes to make monthly cash
payments to Bayview Fund Acquisitions, III in the amount of
$2,000.
A full-text copy of the Debtor's Motion, dated Oct. 7, 2016, is
available at
http://bankrupt.com/misc/PamelaFROG2016_1604965jtg_18.pdf
About Pamela F.R.O.G.
Pamela F.R.O.G., LLC, doing business as Pam's Academy of Champions,
filed a chapter 11 petition (Bankr. W.D. Mich. Case No. 16-04965)
on Sept. 28, 2016. The petition was signed by Pamela J.
Eaton-Champion, managing member. The Debtor is represented by
Michael Shawn Mahoney, Esq., at Michael S. Mahoney, P.C. The case
is assigned to Judge John T. Gregg. The Debtor disclosed $332,704
in assets and $1.13 million in liabilities.
PARKVIEW ADVENTIST: Taps Krigel & Krigel as Special Counsel
-----------------------------------------------------------
Parkview Adventist Medical Center seeks approval from the U.S.
Bankruptcy Court for the District of Maine to hire Krigel & Krigel,
P.C.
The firm will serve as the Debtor's special counsel in proceedings
before the U.S. District Court for the Western District of Missouri
with respect to a motion to quash certain subpoenas filed by
Debtor's former auditors, BKD, LLP and Jean Nyberg.
The hourly rates of Krigel attorneys and paraprofessionals who will
represent the Debtor are:
Sanford P. Krigel $350
Karen S. Rosenberg $300
Paralegal/staff $110
Sanford Krigel, Esq., disclosed in a court filing that the firm
does not hold or represent any interest adverse to the Debtor.
The firm can be reached through:
Sanford P. Krigel, Esq.
Krigel & Krigel, P.C.
4520 Main Street, Suite 700
Kansas City, MO 64111
Phone: (816) 756-5800
About Parkview Adventist Medical Center
Parkview Adventist Medical Center, a Maine non-profit corporation,
operates the Parkview Hospital, a 55-bed faith-based acute care
community hospital located in Brunswick, Maine, affiliated with the
Seventh Day Adventist Church. Its mission is to provide services
supporting the physical, emotional and spiritual wellness of its
patients.
Parkview sought Chapter 11 protection (Bankr. D. Maine Case No.
15-20442) in Portland, Maine, on June 16, 2015. The case is
assigned to Judge Peter G. Cary.
The Debtor estimated $10 million to $50 million in assets and
debt.
The Debtor is represented by George J. Marcus, Esq., at Marcus,
Clegg & Mistretta, PA, in Portlane, Maine.
PATRIOT FLOORING: Hart, Patriot to Fund $500K for Unsecureds
------------------------------------------------------------
Patriot Flooring Supplies, Inc., and Ponypic, LLC, filed with the
U.S. Bankruptcy Court for the Southern District of Florida a First
Amended Disclosure Statement which, like its prior version, says
that unsecured creditors will split $500,000, for a projected 35%
recovery.
ARCPE 1, LLC, has an unsecured deficiency claim of approximately
$200,000 that it has agreed to waive.
The U.S. Small Business Administration's SBA 504 Debenture program
has an allowed secured claim of $32,178, and the remaining amount
owed to it, $1,446,350, will be treated as an allowed unsecured
claim. Accordingly, allowed unsecured claims total approximately
$1,446,350 (this amount is subject to change in accordance with the
procedures outlined in the Plan for determining the amount and
validity of disputed claims).
The holders of allowed unsecured claims will receive a one-time pro
rata distribution from $50,000 in cash contributed by Steven Hart,
President and sole Director and Shareholder of Patriot Flooring,
and $450,000 to be contributed by Patriot Flooring, for a total
distribution of $500,000.
Therefore, each holder of an allowed Class 3 Claim will receive
almost 35% of the allowed amount of the claim, in full satisfaction
of all allowed Class 3 unsecured claims.
The Original Disclosure Statement had contemplated that $50,000
will be contributed by Steven Hart, $50,000 in cash will be
contributed by Ann Hart, a member of Ponypic, and $400,000 to be
contributed by Patriot Flooring, for a total distribution of
$500,000.
A copy of the First Amended Disclosure Statement is available for
free at:
http://bankrupt.com/misc/flsb16-18984_66_Am_DS_Patriot_F.pdf
About Patriot Flooring
Headquartered in West Palm Beach, Florida, Patriot Flooring
Supplies, Inc., is a corporation that was formed and incorporated
in 2000. It owns and operates a wholesale flooring supply
business
with a principal location at 342 Pike Road, Suite 14, West Palm
Beach, Florida 33411. Patriot Flooring has five other storefront
locations in Florida in Palm Beach County, Martin County and
Indian
River County. All of the storefront locations are leased by
Patriot or by one of Patriot's wholly owned subsidiaries. The
Property is owned by affiliate Ponypic, LLC, a Florida limited
liability corporation that was formed in 2008 for the sole purpose
of holding title to the Property. Ponypic leases the Property to
Patriot pursuant to an oral, "triple net" lease.
Patriot Flooring (Bankr. S.D. Fla. Case No. 16-18984) and Ponypic
(Bankr. S.D. Fla. Case No. 16-18986) filed separate Chapter 11
bankruptcy petitions on June 24, 2016. The Patriot Flooring
petition was signed by Steven Hart, president.
Judge Erik P. Kimball presides over the case.
Eric A Rosen, Esq., at Fowler White Burnett, P.A., serves as the
Debtor's bankruptcy counsel.
Patriot Flooring's assets total $3.61 million. Its liabilities
total $4.03 million.
PERPETUAL ENERGY: S&P Affirms Then Withdraws 'SD' CCR
-----------------------------------------------------
S&P Global Ratings said it affirmed its 'SD' (selective default)
long-term corporate credit and 'D' senior unsecured debt ratings on
Perpetual Energy Inc. S&P Global Ratings subsequently withdrew the
ratings due to lack of sufficient, satisfactory information.
S&P had lowered the long-term corporate credit rating on the
company to 'SD' on April 29, 2016. This followed Perpetual's
announcement that it had completed its previously announced
securities swap proposal, which S&P viewed as a distressed exchange
transaction.
PETROLEUM PRODUCTS: Court Allows WDI to File Amended Complaint
--------------------------------------------------------------
Petroleum Products & Services, Inc., dba Wellhead Distributors
Int'l, dba WDI, initially filed the case captioned PETROLEUM
PRODUCTS & SERVICES, INC. Plaintiff(s), vs. KANA ENERGY SERVICES,
INC., et al. Defendant(s), Adversary No. 16-03113, (Bankr. S.D.
Tex.), against Kana Energy Services, Inc., and Surface Supply, LLC,
in a Texas state court. On May 5, 2016, the case was removed to
the Bankruptcy Court.
WDI moved to file an amended complaint to: (1) clearly identify
Jiangsu Jinjia Drilling and Production Equipment Co. Ltd.'s (JHK)
relationship with Jiangsu Jinshi Machinery (JMP) and Kana; (2) add
a claim for breach of contract against Kana based on Kana's motion
for summary judgment; (3) dismiss Surface Supply as a party
defendant; and (4) enable the incorporation of specific statements
of facts from state court discovery relating to the relationship
between Kana, JMP, and JMP's subsidiaries. Kana opposes WDI's
request for leave to amend its complaint, alleging that WDI fails
to meet the standards for leave to amend under Federal Rules of
Civil Procedure 15 and 16.
Judge Marvin Isgur of the United States Bankruptcy Court for the
Southern District of Texas, Houston Division, granted WDI's motion,
concluding that WDI provided adequate notice of the nature of its
proposed amendments in satisfaction of Rule 15(a)(2). Because the
Court finds no undue delay, bad faith or dilatory motive, repeated
failure to cure deficiencies by amendments previously allowed,
undue prejudice to the opposing party, or futility, the Court
allowed WDI leave to file an amended complaint.
A full-text copy of the Memorandum Opinion dated September 14, 2016
is available at https://is.gd/PFopRq from Leagle.com.
Petroleum Products & Services, Inc., Plaintiff, is represented by
Michael J. Durrschmidt, Esq. -- mdurrschmidt@hirschwest.com --
Hirsch & Westheimer, P.C., Adam Ryan Fracht, Esq. -- Stibbs and Co
PC, Eric Scott Lipper, Esq. -- elipper@hirschwest.com -- Hirsch
Westheimer PC.
Kana Energy Services, Inc., Defendant, is represented by Joel M.
Androphy, Esq. -- jandrophy@bafirm.com -- Berg & Androphy, Eric
John Cassidy, Esq. -- ecassidy@bafirm.com -- Berg & Androphy.
Surface Supply, LLC, Defendant, is represented by Esq. Todd
Robinson.
About Petroleum Products
Petroleum Products & Services, Inc. (dba Wellhead Distributors
Int'l and dba WDi) distributes API-6A wellhead equipment and
valves
used in the petroleum and natural gas industries.
The Company filed a Chapter 11 bankruptcy petition (Bankr. S.D.
Tex., Case No. 16-31201) on March 4, 2016. Alejandro Kiss signed
the petition as president. The Debtor estimated assets in the
range of $10 million to $50 million and liabilities of at least
$10
million.
The Debtor has engaged Hoover Slovacek, LLP, as counsel and Hirsch
Westheimer, P.C., as special litigation counsel.
PETROLEUM PRODUCTS: Unsecureds To Get $125K for 20 Quarters
-----------------------------------------------------------
Petroleum Products & Services, Inc., filed with the U.S. Bankruptcy
Court for the Southern District of Texas a disclosure statement in
support of the Debtor's plan of reorganization.
Under the Plan, allowed Class 3 General Unsecured Claims are
impaired. Holders of Allowed Unsecured Class 3 Claims will be paid
as follows:
(a) After payment in full of allowed Class 1 Claims and the
$200,000 payment allocated to the Debtor for operations,
50% of the remaining balance of the tax refund will be
paid, on a pro rata basis, to the holders of Allowed
Class 3 Claims. This payment will be made within 14 days
of the Debtor's receipt of the Tax Refund;
(b) Starting with the 3rd calendar quarter of 2017, each
holder of an Allowed Class 3 claim will receive a pro
rata share of the $125,000 quarterly Class 3 distribution
for a period of 20 quarters or until the claims are paid
in full without interest. Payments will be made by the
last day of the calendar quarter when due, with the first
payment to be made to holders of Allowed Class 3 claim no
later than Sept. 30, 2017; and
(c) Each holder of an Allowed Class 3 claim will receive a
pro rata portion of 50% of the net litigation proceeds
until the claims are paid in full without interest. The
estimated return to Class 3 creditors from the allocable
portion of the Tax Refund and the Class 3 quarterly
distributions is 80% of the amount of anticipated allowed
claims. In addition, Class 3 creditors will receive a
pro rata share of net litigation proceeds to the extent
received.
On the Effective Date of the Plan, all property of the Debtor and
of its Estate will vest in the Reorganized Debtor free and clear of
liens, claims and encumbrances, except as otherwise provided by the
terms of the Plan.
Current cash flow derived from operations will be used to pay
allowed claims as required by the Plan, together with the cash
infusion, up to $1.75 million of the proceeds of the sale of the
Kiss Real Estate, the tax refund, Class 3 quarterly distribution,
and net litigation proceeds.
The Disclosure Statement is available at:
http://bankrupt.com/misc/txsb16-31201-280.pdf
About Petroleum Products
Petroleum Products & Services, Inc. (dba Wellhead Distributors
Int'l and dba WDi) distributes API-6A wellhead equipment and valves
used in the petroleum and natural gas industries.
The Debtor filed a Chapter 11 bankruptcy petition (Bankr. S.D.
Tex., Case No. 16-31201) on March 4, 2016. Alejandro Kiss signed
the petition as president. The Debtor estimated assets in the
range of $10 million to $50 million and liabilities of at least $10
million.
The Debtor has engaged Hoover Slovacek, LLP, as counsel and Hirsch
Westheimer, P.C., as special litigation counsel.
PETROQUEST ENERGY: S&P Lowers Corporate Credit Rating to 'SD'
-------------------------------------------------------------
S&P Global Ratings lowered its corporate credit rating on
Lafayette, La.-based PetroQuest Energy Inc. to 'SD' from 'CC'. S&P
also lowered the issue-level rating on the company's
$145 million senior secured second-lien notes to 'D' from 'CC'. The
recovery rating on the notes remains '3', indicating S&P's
expectation of meaningful (higher end of the 50%-70% range)
recovery in the event of a default. The 'D' issue-level and '6'
recovery ratings on the senior unsecured notes due September 2017
are unchanged. The '6' recovery rating indicates negligible (0% to
10%) recovery in the event of default.
"The downgrade follows PetroQuest's announcement that it has
completed an exchange offer to existing holders of its $145 million
10% senior secured second-lien notes and 10% senior unsecured notes
for equity and new senior secured second-lien notes due 2021 at par
value," said S&P Global Ratings credit analyst Daniel Krauss.
The company's capital structure is now composed of $243.5 million
in newly issued second-lien senior secured payment-in-kind (PIK)
notes due 2021, $22.7 million in unsecured notes due September
2017, and $14.2 million in 10% senior secured second-lien notes due
2021.
S&P views the transaction as a distressed exchange because
investors will receive less than what was promised on the original
securities. While the exchange is being made at par, the timing of
payments is slowed from a 10% cash interest rate to 1% cash
interest and 9% PIK rates for the first 18 months. Additionally,
in S&P's view, the offer was distressed, rather than purely
opportunistic, given the current challenging operating environment,
and upcoming 2017 debt maturities.
S&P expects to review the corporate credit and issue-level ratings,
as well as assign ratings to the new second-lien notes, to reflect
ongoing default risk.
PHH CORPORATION: Moody's Lowers CFR to B1, Outlook Stable
---------------------------------------------------------
Moody's Investors Service has taken these rating actions with
respect to PHH Corporation (PHH):
Corporate Family Rating downgraded to B1 from Ba3; stable
outlook assigned
Senior Unsecured Rating downgraded to B1 from Ba3; stable
outlook assigned
Senior Unsecured MTN Rating downgraded to (P)B1 from (P)Ba3
The rating action concludes the review for downgrade Moody's
initiated on April 11, 2016.
The review was initiated on April 11, 2016, following PHH's
announcement that its largest private label client, Merrill Lynch
Home Loans, a division of Bank of America, NA, intended to reduce
its reliance on PHH and that PHH's second largest private label
client, Morgan Stanley Private Bank, NA, indicated that it would be
reassessing its mortgage origination services arrangement with the
company after its contract expires in Oct. 31, 2017.
RATINGS RATIONALE
The actions reflect significant challenges to PHH's core private
label servicing business, which Moody's believes as currently
constituted is not profitable. Last March, the company announced
that it was exploring strategic options. Furthermore, the company
continues to lose clients, having announced that it would be losing
nearly one-third of its subservicing portfolio, as HSBC Bank had
agreed to sell the mortgage servicing rights with the buyer not
planning to retain PHH as a subservicer. Additionally, PHH
announced that it had received notice from Bank of America that it
was exercising its right to terminate its agreement for PHH to
provide private label origination services on behalf of Merrill
Lynch, effective as of March 31, 2017.
Offsetting the company's weak franchise position, PHH's capital and
liquidity are strong with tangible common equity of
$1.3 billion and cash of $1.0 billion as of June 30, 2016. With
just $615 million in unsecured debt, the company currently has
sufficient resources to repay such debt in full.
The stable outlook reflects the company's strong capital position
and liquidity, as well as our expectation that the company will
maintain sufficient capital to fully repay its debt.
PHH's ratings may be downgraded if the company's tangible common
equity to total assets decreases below 25% or its liquidity weakens
materially, such as if its unrestricted cash balance over debt and
repurchase facility maturities over the next 24 months falls below
70% or secured debt to tangible assets increases above 35%.
Negative ratings' pressure also would likely develop if Moody's
views the firm's operating strategies as insufficient to restore
profitability.
The ratings may be upgraded if the company is able to achieve
sustainable profitability of 2.5% net income to assets.
The principal methodology used in these ratings was Finance
Companies published in October 2015.
PINNACLE INNOVATION: Court Approves Amended Cash Stipulation
------------------------------------------------------------
Judge Wayne Johnson of the U.S. Bankruptcy Court for the Central
District of California approved the Stipulation regarding the use
of cash collateral and adequate protection entered into by Pinnacle
Innovation, Inc. and MyBusinessLoan.com, LLC, doing business as
Dealstruck, Inc.
The Debtor was authorized to use cash collateral on the terms set
forth in the amended Stipulation.
Judge Johnson authorized the Debtor and MyBusinessLoan to take all
other actions reasonably contemplated by and described in their
amended Stipulation.
A full-text copy of the Order, dated Oct. 7, 2016, is available at
http://bankrupt.com/misc/PinnacleInnovation2016_616bk10735wj_74.pdf
About Pinnacle Innovation
Pinnacle Innvoation, Inc., filed a chapter 11 petition (Bankr. C.D.
Cal. Case No. 16-10735) on Jan. 29, 2016. The petition was signed
by Jose Marroquin, president. The Debtor is represented by Todd L.
Turoci, Esq., at The Turoci Firm. The Debtor estimated assets at
$100,001 to $500,000 and debt of $500,001 to $1 million at the time
of the filing.
PLANET MERCHANT: U.S. Trustee Forms Four-Member Committee
---------------------------------------------------------
Daniel J. Casamatta, Acting U.S. Trustee, on Oct. 6 appointed four
creditors of Planet Merchant Processing, Inc., to serve on the
official committee of unsecured creditors.
The committee members are:
(1) TSYS MERCHANT SOLUTIONS, LLC
Attn: Aaron D. Adams
1601 Dodge Street, Suite 23 East
Omaha, NE 68102
Tel: (402) 574-7492
E-mail: aaronadams@tsys.com
(2) FIRST AMERICAN PAYMENT SYSTEMS, L.P.
Attn: Alan Struble
100 Throckmorton Street, Suite 1800
Fort Worth, TX 76102
Tel: (817) 317-9153
E-mail: alan.struble@first-american.net
(3) EVO MERCHANT SERVICES, LLC
Attn: Michael L. Reidenbach
515 Broadhollow Road
Melville, NY 11747
Tel: (516) 962-7962
E-mail: Michael.Reidenbach@evopayments.com
(4) WORLDPAY US, INC.
Attn: Doug Sandberg
201 17th Street, NW, Suite 1000
Atlanta, GA 30363
Tel: (678) 587-1244
E-mail: Doug.Sandberg@Worldpay.us
Official creditors' committees have the right to employ legal and
accounting professionals and financial advisors, at a debtor's
expense. They may investigate the debtor's business and financial
affairs. Importantly, official committees serve as fiduciaries to
the general population of creditors they represent.
Planet Merchant Processing, Inc., filed a Chapter 11 bankruptcy
petition (Bankr. D. Nebr. Case No. 16-81243) on Aug. 17, 2016. The
Hon. Thomas L. Saladino presides over the case. McGill, Gotsdiner,
Workman & Lepp, P.C., L.L.O. represents the Debtor as counsel.
In its petition, the Debtor estimated $1 million to $50 million in
both assets and liabilities. The petition was signed by Dennis
O'Brien, president.
PRELUDE INVESTMENT: Hearing on Cash Use Continued to Nov. 3
-----------------------------------------------------------
Judge Sandra R. Klein of the U.S. Bankruptcy Court for the Central
District of California continued the hearing on Prelude Investment,
LLC's cash collateral motion to Nov. 3, 2016 at 8:30 am.
The Debtor was ordered to file an additional budget with admissible
evidence by Oct. 13, 2016.
Judge Klein held that the Debtor must amend the cash collateral
budget to reflect default interest rate payment, approximately
$10,700 per month, for June through November, 2016, and file the
Declaration of Tammy Woloski, declaring that Property taxes are
paid through the Mortgage Escrow Account, and regarding payment for
utilities.
The Debtor was also ordered to file the Leases for tenants Tile
King Group and Servpro, and the Declaration of the Debtor's
principal's relative regarding the source of Debtor's legal fees
and U.S. Trustee's fees.
Judge Klein gave JPMorgan Chase until Oct. 20, 2016 to file an
opposition and permitted the Debtor to file a reply by Oct. 27,
2016.
A full-text copy of the Order, dated Oct. 7, 2016, is available at
http://bankrupt.com/misc/PreludeInvestment2016_216bk11776sk_92.pdf
About Prelude Investment
Prelude Investment LLC filed a chapter 11 petition (Bankr. C.D.
Cal. Case No. 09-25621) on June 19, 2009. The petition was signed
by Jing Gong, managing member. The Debtor is represented by Robert
Berke, Esq., at Berke Law Offices. The case is assigned to Judge
Barry Russel. The Debtor estimated assets and liabilities at
$1,000,001 to $10,000,000 at the time of the filing.
PRO MACH: Moody's Retains B3 CFR on Proposed $110MM Loan Add-On
---------------------------------------------------------------
Moody's Investors Service says that Pro Mach Group, Inc. proposed
$110 million add-on to its $410 million first lien term loan due
2021 and $50 million delayed draw term loan due 2021 is credit
negative because it increases debt and leverage and there is
uncertainty regarding the use of proceeds. The transaction,
nevertheless, does not impact the company's ratings including its
B3 Corporate Family Rating, B3-PD Probability of Default Rating, B2
ratings on the first lien credit facilities, or stable rating
outlook. Ratings are not impacted because, although debt-to-EBITDA
leverage is high, it remains within the range expected for the B3
rating category and liquidity is good.
Moody's maintains the following ratings on Pro Mach Group, Inc.:
Corporate Family Rating, B3
Probability of Default Rating, B3-PD
$60 Million Senior Secured First Lien Revolving Credit Facility
due 2019, B2 (LGD3)
$520 Million (including $110 million add-on and $30 million EUR
tranche) Senior Secured First Lien Term Loan B due 2021, B2
(LGD3)
Outlook, Stable
Moody's assigns these rating on Pro Mach Group, Inc.:
$50 Million Senior Secured Delayed Draw Term Loan B due 2021, B2
(LGD3)
RATINGS RATIONALE
Pro Mach Group, Inc., headquartered in Covington, KY, and its
subsidiaries manufacture a range of packaging equipment and related
aftermarket parts and services used primarily in the food,
beverage, household goods and pharmaceutical industries. Pro Mach
is a portfolio company of AEA Investors LP. Pro-forma for the most
recent acquisitions, revenues for the 12 months ended
June 30, 2016, were approximately $630 million.
The principal methodology used in these ratings was Global
Manufacturing Companies published in July 2014.
PRO MACH: S&P Retains 'B-' 1st Lien Debt Rating Following Upsize
----------------------------------------------------------------
S&P Global Ratings said that its 'B-' issue-level rating and '3'
recovery rating on Cincinnati-based Pro Mach Group Inc.'s
first-lien credit facility are unchanged following the company's
announcement that it is upsizing the loan by $160 million, which
includes $110 million funded at close and a $50 million delayed
draw feature. The '3' recovery rating reflects S&P's expectation
for meaningful (50%-70%; lower half of the range) recovery in a
simulated default scenario.
All of S&P's other ratings on Pro Mach Group also remain
unchanged.
S&P expects that the company will use the proceeds from this
transaction to build up its liquidity for future acquisitions and
to repay a portion of its outstanding second-lien secured notes,
subject to an amendment on the existing first-lien facilities.
RECOVERY ANALYSIS
Key analytical factors
-- Based on the proposed incremental term loan, S&P is updating
its recovery analysis as:
-- S&P's recovery rating on Pro Mach's first-lien facilities
reflects its expectations for meaningful (50%-70%; lower
half of the range) recovery from the facility's senior
secured standing in the capital structure and its first-
priority lien on the security package, coupled with S&P's
estimated emergence enterprise value. S&P's recovery
analysis assumes that Pro Mach will reorganize in a default
scenario, given the company's existing relationships with
its blue chip customer base and the high-profit-margin
aftermarket services it provides for its installed machine
base.
-- S&P's analysis is based on an emergence EBITDA of $74
million. It incorporates S&P's view of the cyclicality of
Pro Mach's key end markets and the company's expected EBITDA
margin at emergence.
-- S&P calculated a net emergence enterprise value of
approximately $352 million after priority administrative
expenses. After satisfying priority claims and foreign
credit facility lenders' claims, S&P believes that the
residual value would be sufficient to provide the first-lien
credit facility lenders with recovery prospects in the lower
half of the 50%-70% range.
Simulated default assumptions
-- Simulated year of default: 2018
-- EBITDA at emergence: $74 million
-- EBITDA multiple: 5x
Simplified waterfall
-- Gross enterprise value: $370 million
-- Administrative expenses: $19 million
-- Net enterprise value: $352 million
-- Valuation split (obligors/nonobligors): 81%/19%
-- Priority claims: $1.0 million
-- Collateral value available to secured creditors:
$326 million
-- Secured first-lien debt: $614 million
-- Recovery expectations: 50%-70% (lower half of the range)
Note: All debt amounts include six months of prepetition interest.
Collateral value equals asset pledge from obligors after priority
claims plus equity pledge from nonobligors after nonobligor debt.
RATINGS LIST
Ratings Unchanged
Pro Mach Group Inc.
Corporate Credit Rating B-/Stable/--
Senior Secured B-
Recovery Rating 3L
PUERTO RICO: Hedge Funds Holding GOs Sue Over Sales-Tax Bonds
-------------------------------------------------------------
Michelle Kaske, writing for Bloomberg News, reported that hedge
funds holding Puerto Rico's general-obligation bonds are asking a
court to stop the commonwealth from directing sales-tax revenue to
repay other debt backed by that money because it violates the
island's constitution.
According to Bloomberg, it is the first legal action for the U.S.
territory that pits general-obligation bondholders against
investors of sales-tax debt. Puerto Rico's constitution states its
general obligations must be repaid before other expenses, the
report related. A portion of the island's sales-tax revenue is
dedicated to repaying bonds, called Cofinas by their Spanish
acronym, the report further related.
Entities managed by Aurelius Capital Management, Autonomy Capital,
Covalent Partners, FCO Advisors, Monarch Alternative Capital and
Stone Lion Capital Partners in July sued Governor Alejandro Garcia
Padilla in U.S. District Court in San Juan to stop the
administration from transferring funds away from bondholders, the
report recalled. The hedge funds say it violates a federal law,
called Promesa, which prohibits the island from enacting new
legislation to divert revenue or assets that would go against its
constitution, the report said.
The hedge funds filed an amended complaint on Oct. 7, adding that
the Puerto Rico Sales Tax Financing Corp., issuer of the Cofina
bonds, as a defendant, the report added.
QUANTUM CORP: Reports Prelim. Fiscal Second Quarter 2017 Revenue
----------------------------------------------------------------
Quantum Corp. announced positive preliminary results for the fiscal
second quarter 2017, ended Sept. 30, 2016. The Company currently
expects:
* Total revenue of approximately $132 million to $134 million,
up from $117 million in the fiscal second quarter 2016.
* Scale-out storage and related service revenue of at least $46
million, an increase of more than $16 million.
* To be breakeven on both a diluted GAAP and diluted non-GAAP
basis, compared to a diluted GAAP net loss of $0.04 per share
and a diluted non-GAAP net loss of $0.03 per share.
"Following our strong first quarter performance, we built on our
market momentum to deliver even stronger results for the September
quarter, with year-over-year growth in both scale-out storage and
branded data protection revenue," said Jon Gacek, president and CEO
of Quantum. "We are particularly pleased with the 50-plus percent
growth in scale-out storage, which was driven by increased sales
across all our key vertical markets.
"Customers in an expanding number of use cases see our multi-tier
storage solutions approach and unique combination of high
performance, low-cost capacity and easy data access as key enablers
for addressing their workflow demands. Our momentum continues to
grow, and, in fact, we are off to a strong start in the December
quarter, building on our increasing market traction."
Quantum will provide more detailed financial results for the fiscal
second quarter in its earnings announcement on Oct. 26, 2016.
Update on Refinancing Activities
In addition to announcing its preliminary results, the Company also
provided an update regarding the refinancing activities discussed
in its fiscal first quarter 2017 earnings announcement.
"Since our earnings announcement, we've made significant progress
toward completion of a new financing package to refinance our
existing credit line and provide sufficient additional liquidity to
address the convertible notes due November 2017," said Fuad Ahmad,
senior vice president and CFO of Quantum. "Although we are not in
a position to announce the transaction at this time and there can
be no assurance that it will be consummated, Quantum and the other
parties are currently negotiating definitive agreements for the
transaction."
Earnings Conference Call and Audio Webcast Notification
Quantum will issue a news release on its fiscal second quarter
financial results on Wednesday, Oct. 26, 2016, after the close of
the market. The company will also hold a conference call and live
audio webcast to discuss these results that same day at 2:00 p.m.
PDT. Press and industry analysts are invited to attend in
listen-only mode.
Dial-in number: +1 (503) 343-6063
Participant passcode: 94619494
Replay number: +1 (404) 537-3406
Replay passcode: 94619494
Replay expiration: Wednesday, Nov. 2, 2016
Webcast site: www.quantum.com/investors
About Quantum Corp.
Based in San Jose, California, Quantum Corp. (NYSE:QTM) --
http://www.quantum.com/-- is a storage company specializing in
backup, recovery and archive. Quantum provides a comprehensive,
integrated range of disk, tape, and software solutions supported
by a world-class sales and service organization.
Quantum reported net income of $16.7 million on $553 million of
total revenue for the year ended March 31, 2015, compared to a net
loss of $21.5 million on $553 million of total revenue for the
year ended March 31, 2014.
As of June 30, 2016, Quantum had $209 million in total assets, $338
million in total liabilities and a $129 million total stockholders'
deficit.
QUINTESS LLC: Case Summary & 20 Largest Unsecured Creditors
-----------------------------------------------------------
Debtor: Quintess, LLC
aka Quintess Collection
aka Quintess
11101 W. 120th Avenue, Suite 200
Broomfield, CO 80021
Case No.: 16-19955
Chapter 11 Petition Date: October 7, 2016
Court: United States Bankruptcy Court
District of Colorado (Denver)
Judge: Hon. Joseph G. Rosania Jr.
Debtor's Counsel: Duncan E. Barber, Esq.
SHAPIRO BIEGING BARBER OTTESON LLP
4582 S. Ulster St. Pkwy., Ste. 1650
Denver, CO 80237
Tel: 720-488-0220
Fax: 720-488-7711
E-mail: dbarber@sbbolaw.com
- and -
Ron Bender, Esq.
LEVENE, NEALE, BENDER, YOO & BRILL LLP
10250 Constellation Blvd., Suite 1700
Los Angeles, CA 90067
Tel: (310) 229-1234
E-mail: rb@lnbyb.com
Estimated Assets: $0 to $50,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Pete Estler, chief executive officer.
A copy of the Debtor's list of 20 largest unsecured creditors is
available for free at http://bankrupt.com/misc/cob16-19955.pdf
REGENCY PARK: Unsecureds To Be Paid in Full After Motel Sale
------------------------------------------------------------
Sawaranjit Sarah Singh filed with the U.S. Bankruptcy Court for the
District of Arizona an amended disclosure statement describing a
plan of liquidation for Regency Park Capital 2011, Inc.
Mrs. Singh is the proponent of the Plan of Liquidation Dated Aug.
16, 2016. Mrs. Singh and her husband, Ranjit Singh, have owned all
of the Debtor's stock since its formation. Mr. Singh has been
primarily responsible for managing the Motel.
Allowed Class 4 General Unsecured Claims, which consists of general
unsecured claims, including those with unpaid those for goods,
services or credit extended to the Debtor, are estimated to total
5125,849.73. The Debtor believes that there are additional claims
held by three friends of the Plan Proponent's husband, Ranjit
Singh, totaling $245,000 such that there will be total allowed
claims of $370,849.73; but the Plan Proponent believes that these
three claims are bogus and will be disallowed. After payment in
full to the holders of allowed administrative expense claims, and
by not later than five business days after the closing of the Super
8 Motel sale, each allowed Class 4 Claim will be paid in full. The
Class 4 Claims are impaired.
Payments to allowed claims of Classes 1-4 and distributions to
Class 5 will be funded from (i) cash on hand; (b) the net proceeds
from the sale (private or public) of the property of any kind
belonging to the Debtor and its bankruptcy estate, including
(without limitation) the Motel and the Vehicle; and (c) stockholder
loans.
The Amended Disclosure Statement is available at:
http://bankrupt.com/misc/azb15-15280-205.pdf
The Plan Proponent is represented by:
Brian N. Spector, Esq.
SCHNEIDER & ONOFRY, P.C.
3101 N. Central Avenue
Phoenix, Arizona 85012-2658
E-mail: bspector@soarizonalaw.com
-- and --
John T. Gilbert, Esq.
ALVAREZ & GILBERT, P.L.L.C.
14500 N. Northsight Boulevard, Suite 216
Scottsdale, AZ 85260
About Regency Park Capital
Regency Park Capital 2011, Inc., dba Super 7 Goodyear operates a
Super 8 Motel consisting of Real Property and Personal Property
located at 840 N. Dysart Road in Goodyear, Arizona. The Motel,
consisting of approximately ninety rooms, was purchased in 2011.
The Debtor was formed in 2011 to own and operate the Motel.
According to an Annual Report filed on Jan. 5, 2016, Mrs. Singh is
the Debtor's sole officer and director. The Singhs are currently
involved in divorce proceedings in British Columbia, Canada.
The Debtor operates under a franchise agreement with Super 8
Worldwide, Inc., and is subject to review by the franchisor to
determine if it is in compliance with the standards demanded by the
franchisor. According to the Debtor, the Debtor remains in good
standing with Super 8.
The Debtor filed for Chapter 11 bankruptcy protection (Bankr. D.
Ariz. Case No. 15-15280).
REX NICHOLS: Selling Baldwin County Property to CPI for $1.4M
-------------------------------------------------------------
Rex A. Nichols and Claudene B. Nichols ask the U.S. Bankruptcy
Court of the Southern District of Alabama to authorize the private
sale of office space properties in Daphne, Alabama, and the
approximately 136 acres of land and 36 lots in Phase II of the
Cambron Subdivision on Highway 31 in Baldwin County, Alabama
("Cabron Property"), to CPI Holdings, LLC, for $1,375,000.
The Debtors own (i) Nichols Properties, Inc. which owns office
space properties in Daphne, Baldwin County, Alabama; (ii) Nichols
Investments, LLC which owns two other office space properties in
Daphne; and (iii) Cambron Investments, LLC which owns the Cabron
Property.
The Debtors propose to sell the office space properties and the
Cambron Property to CPI Holdings. The property does not include
"personally identifiable information" nor is the transaction
subject to the Clayton Act.
To the best of the Debtors' knowledge, information, and belief,
these parties claim a lien, mortgage, encumbrance, or other
interest:
a. Sabal Financial Group, LP is owed approximately $4,200,000 on
notes secured by the properties. Sabal is acting as Manager of
Crimson Monroe, LLC, Crimson Wildflower, LLC, and Crimson Portfolio
Alpha, LLC. The mortgages securing the debt are held by Crimson
Portfolio Alpha, LLC, a Delaware limited liability company,
pursuant to two Corrective Assignments of Security Instruments
recorded on June 29, 2016 as Instrument Nos. 1578609 and 1578610 in
the records of the Baldwin County Probate Court.
b. Teddy J. Faust, Baldwin County Revenue Commissioner, holds a
lien to secure payment of property taxes for the subject property.
c. Ammons & Blackmon Construction has a judgment for $225,810
against Cambron. The Debtors are informed Osprey Ran, LLC is an
assignee of the judgment and other liens on the property. The
Debtors are informed and believe these liens can be satisfied with
payment of $225,000.
The Debtors believe that the sale of the property is in the best
interest of the estate and the other creditors because Sabal has
agreed to release the Debtors from the entire Sabal debt for the
net sale proceeds and the money currently held by the Baldwin
County Circuit Clerk in the approximate amount $313,000.
The Debtors propose to pay the closing costs and property taxes at
closing and will reserve from the closing proceeds the fees due
pursuant to 28 U.S.C. Section 1930 (the Bankruptcy Administrator
BA-2 quarterly fees) and a reserve for earned but not yet approved
or paid attorneys' fees for Debtor's counsel, with the balance to
be paid to the first lienholder, Sabal at closing. From the
proceeds received, Sabal will apply the funds to the balance of the
outstanding indebtedness secured by the property.
The Debtors propose to pay additional funds into the closing in an
amount to allow Sabal to receive $1,813,000. Upon receipt of the
amount Sabal will give Debtors and the Debtors' entities a full and
complete release of all indebtedness owed by Debtors to Sabal and
the Crimson entities.
Counsel for the Debtors:
Marion E. Wynne, Jr., Esq.
WILKINS, BANKESTER, BILES & WYNNE, P.A.
P.O. Box 1367
Fairhope, AL 36533
Telephone: (251) 928-1915
E-mail: twynne@wbbwlaw.com
Rex A. Nichols and Claudene B. Nichols sought Chapter 11 protection
(Bankr. S.D. Ala. Case No. 16-02350) on July 14, 2016. The Debtor
tapped Marion E. Wynne, Jr., Esq. as counsel.
REX NICHOLS: Selling Fairhope Office Space Properties for $625K
---------------------------------------------------------------
Rex A. Nichols and Claudene B. Nichols ask the U.S. Bankruptcy
Court of the Southern District of Alabama to authorize the private
sale of an office space properties in Fairhope, Baldwin County,
Alabama owned by Nichols Properties, Inc. ("NPI"), commonly known
as 200 Rock Creek Drive, Fairhope Alabama, to ClearPoint
Properties, LLC, for $625,000.
A copy of the Commercial Purchase Agreement attached to the Motion
is available for free at:
http://bankrupt.com/misc/Rex_Nichols_48_Sales.pdf
To the best of the Debtors' knowledge, information, and belief,
these parties claim a lien, mortgage, encumbrance, or other
interest:
a. Sabal Financial Group, LP is owed approximately $4,200,000 on
notes secured by the properties. Sabal is acting as Manager of
Crimson Monroe, LLC, Crimson Wildflower, LLC and Crimson Portfolio
Alpha, LLC. The mortgages securing the debt are held by Crimson
Portfolio Alpha, LLC, a Delaware limited liability company,
pursuant to two Corrective Assignments of Security Instruments
recorded on June 29, 2016 as Instrument Nos. 1578609 and 1578610 in
the records of the Baldwin County Probate Court.
b. Teddy J. Faust, Baldwin County Revenue Commissioner, holds a
lien to secure payment of property taxes for the subject property.
The Debtors believe that the sale of the property is in the best
interest of the Estate and the other creditors because they will
use a substantial portion of the net sale proceeds to pay the
difference between the sale price of the Bromley property and the
necessary $1,800,000 required to get a full release of the debt
owed to BB&T. This is the highest and best offer Debtors have
received for the property. The property does not include
"personally identifiable information" nor is the transaction
subject to the Clayton Act.
The Debtors propose to pay the closing costs and property taxes at
closing and will reserve from the closing proceeds the fees due
pursuant to 28 U.S.C. Section 1930 (the Bankruptcy Administrator
BA-2 quarterly fees) and a reserve for earned but not yet approved
or paid attorneys' fees for the Debtor's counsel, with the balance
to be paid to the Debtors for use in closing the Bromley sale.
Rex A. Nichols and Claudene B. Nichols sought Chapter 11 protection
(Bankr. S.D. Ala. Case No. 16-02350) on July 14, 2016. The Debtor
tapped Marion E. Wynne, Jr., Esq. as counsel.
REX NICHOLS: Selling Stapleton Property to MKA for $1.4M
--------------------------------------------------------
Rex A. Nichols and Claudene B. Nichols ask the U.S. Bankruptcy
Court of the Southern District of Alabama to authorize the private
sale of three adjacent unimproved parcels located off Bromley Road,
Stapleton, Baldwin County, and constituting on approximately 482
acres to MKA Holdings, LLC for $1,400,000.
A copy of the Purchase Agreement attached to the Motion is
available for free at:
http://bankrupt.com/misc/Rex_Nichols_46_Sales.pdf
Oakmont Estates Investments, Inc., an entity fully owned by
Debtors, owns 51 acres that is part of property making up the 482
acres comprising the sale to MKA Holdings.
To the best of the Debtors' knowledge, information, and belief,
these parties claim a lien, mortgage, encumbrance, or other
interest:
a. BB&T holds a first mortgage on said property, which secures a
debt in the approximate amount of $5,300,000. The mortgage was
recorded as Instrument No. 1028765 on Jan. 31, 2007 in the records
of the Judge of Probate, Baldwin County, Alabama.
b. Teddy J. Faust, Baldwin County Revenue Commissioner, holds a
lien to secure payment of property taxes for the subject property
for the tax year 2016.
c. Osprey Rand, LLC avers it has a judgment lien on the
property. The Debtors aver that even if such lien exists it is
subordinate to the BB&T lien which is greater than the value of the
real estate collateral.
The Debtors believe that the sale of the property is in the best
interest of the Estate, in that, the transaction, if consummated,
will eliminate the debt owed to their largest creditor, BB&T, which
will be beneficial to all other creditors and potential bidders for
the Debtors' assets. The purchase price represents the best and
highest offer that the Debtors have received for the property. The
property does not include "personally identifiable information" nor
is the transaction subject to the Clayton Act.
The Debtors propose to pay the closing costs and property taxes at
closing and will reserve from the closing proceeds the fees due
pursuant to 28 U.S.C. Section 1930 (the Bankruptcy Administrator
BA-2 quarterly fees) and a reserve for earned but not yet approved
or paid attorneys' fees for Debtor's counsel, with the balance to
be paid to the first lienholder, BB&T at closing. From the
proceeds received, BB&T will apply the funds to the balance of the
outstanding indebtedness secured by the property.
The Debtors propose to pay additional funds into the closing in an
amount to allow BB&T to receive $1,800,000. Upon receipt of the
amount BB&T will give the Debtors a full and complete release of
all indebtedness owed by Debtors to BB&T. If for any reason, the
Debtors are unable to deliver $1,800,000 to BB&T at the closing,
the sale will not be consummated.
The Debtors and BB&T have agreed that Debtors will consent to
BB&T's Motion for Relief from the Automatic Stay if the sale
proposed does not close within 30 days of the Order granting the
Motion to Sell. Further, if the sale does not close within 30 days
of the Order, BB&T will not grant Debtors a full release of
indebtedness as proposed.
If the sale does not close within 30 days of the Court Order
allowing the sale, the Debtors agree to file a Motion to Employ
John Dixon & Associates as auctioneers and a Motion to Sell the
property by public auction under Section 363. The parties seek an
Order that approves such sale of the property at public auction
without any additional hearings before the Court.
The Debtors agree to consent to a Motion by BB&T to extend the
deadline to file a complaint objecting to discharge to Dec. 9,
2016.
In order to produce the funds necessary to pay BB&T $1,800,000 net
at the closing the Nichols will propose the sale of other
properties owned by entities owned and controlled 100% by the
Debtors. These entities are:
a. Cambron Investments, LLC owns 36 lots in Phase II of the
Cambron Subdivision, 139 contiguous acres not yet submitted to the
subdivision form, and 8 acres of commercial property located on
Highway 31 in Baldwin County. If the Court approves, the property
will be sold to CPI Holdings, LLC, for $1,000,000 payable in cash
or certified funds at closing.
b. Nichols Properties, Inc. owns office space properties in
Daphne, Baldwin County, Alabama (PPIN 046841 and 077301). Nichols
Investments, LLC, owns other office space properties in Daphne
(PPIN 067038 and 063485). These properties are to be sold with the
Cambron properties for an additional $375,000. The total purchase
price to be paid by CPI Holdings, LLC, for the sale of the Cambron
properties and the office space properties is $1,375,000.
c. Nichols Properties, Inc. also owns an office building in the
Rock Creek Subdivision in Fairhope, Alabama (PPIN 114851). The
property will be sold to ClearPoint Properties, LLC for $625,000.
The Debtors will use the proceeds from the sale to pay the
additional funds needed to pay BB&T $1,800,000 net at closing.
Accordingly, all of the closings described must occur either prior
to, or simultaneously with, the closing with the Buyer.
Counsel for the Debtors:
Marion E. Wynne, Jr., Esq.
WILKINS, BANKESTER, BILES & WYNNE, P.A.
P.O. Box 1367
Fairhope, AL 36533
Telephone: (251) 928-1915
E-mail: twynne@wbbwlaw.com
Rex A. Nichols and Claudene B. Nichols sought Chapter 11 protection
(Bankr. S.D. Ala. Case No. 16-02350) on July 14, 2016. The Debtor
tapped Marion E. Wynne, Jr., Esq. as counsel.
ROTARY DRILLING: Plan Confirmation Hearing on Oct. 31
-----------------------------------------------------
Bankruptcy Judge Marvin Isgur granted conditional approval to the
Amended Disclosure Statement in Support of the Amended Joint
Chapter 11 Plan of Liquidation of debtors Rotary Drilling Tools
USA, LLC, et al.
The Court will hold a hearing to consider final approval of the
Disclosure Statement and confirmation of the Plan on Oct. 31 at
9:00 a.m. in Houston, Texas.
Plan votes are due Oct. 28. Objections to approval of the
Disclosure Statement and confirmation of the Plan are due Oct. 28.
The Debtors filed an amended version of the Plan outline on Sept.
22 and Sept. 28. The Court approved the Sept. 28 version. The
Debtors then filed a solicitation version of the Plan documents on
Oct. 5.
According to the Disclosure Statement: THE OFFICIAL COMMITTEE OF
UNSECURED CREDITORS HAS EVALUATED THE PLAN AND FULLY SUPPORTS IT.
THE COMMITTEE URGES YOU TO VOTE IN FAVOR OF THE PLAN.
Rotary Drilling Tools USA, LLC, et al., filed with the U.S.
Bankruptcy Court for the Southern District of Texas an amended
disclosure statement in support of the Debtor's amended joint
Chapter 11 plan of liquidation.
Under the Amended Plan, a liquidating trustee will distribute
available cash pro rata to holders of allowed Class 4 - General
Unsecured Claims and the disputed claims reserve pursuant to on
each distribution date. The Liquidating Trustee will have the
right, but not the obligation, make interim distributions to
holders of allowed claims in Class 4 from available cash on
interim
distribution dates as the Liquidating Trustee determines
appropriate. In the event that any of Class 4 are paid in full
and
there exists remaining available cash, holders of allowed claims
in
the class will receive interest at the plan rate. The projected
distribution to Class 4 Claims is 3.7%, but the actual
distribution
amount cannot be predicted.
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.
SAAD INC: Can Use Cash Collateral on Interim Basis
--------------------------------------------------
Judge Joan N. Feeney of the U.S. Bankruptcy Court for the District
of Massachusetts authorized Saad, Inc., to use cash collateral on
an interim basis.
The Debtor was directed to file a reconciliation of actual income
and expenses to the Budget submitted by Nov. 7, 2016.
The continued hearing on the final approval of the Debtor's request
for the use of cash collateral is scheduled on Nov. 9, 2016 at
10:45 a.m. The deadline for the filing of objections to the
Debtor's use of cash collateral is set on Nov. 8, 2016.
A full-text copy of the Order, dated Oct. 7, 2016, is available at
http://bankrupt.com/misc/SaadInc2016_1613691_26.pdf
About Saad, Inc.
Saad, Inc. filed a chapter 11 petition (Bankr. D. Mass. Case No.
16-13691) on Sept. 27, 2016. The petition was signed by Yacoub G.
Saad, president. The Debtor is represented by Norman Novinsky,
Esq., at Novinsky & Associates. The case is assigned to Judge Joan
N. Feeney. The Debtor disclosed total assets at $1.26 million and
total liabilities at $734,638.
SAMSON RESOURCES: Fee Examiner Taps Benesch as Co-Counsel
---------------------------------------------------------
Richard Gitlin, the fee examiner appointed in Samson Resources
Corp.'s Chapter 11 case, seeks approval from the U.S. Bankruptcy
Court in Delaware to hire Benesch, Friedlander, Coplan & Aronoff
LLP.
Benesch will serve as co-counsel with Godfrey & Kahn, S.C., another
firm tapped by the fee examiner to be his lead bankruptcy counsel.
The standard hourly rates of Benesch attorneys and paralegals are:
Jennifer R. Hoover Partner $460
William M. Alleman, Jr. Associate $325
Celeste A. Hartman Paralegal $270
In a court filing, Ms. Hoover disclosed that her firm is a
"disinterested person" as defined in section 101(14) of the
Bankruptcy Code.
Ms. Hoover also disclosed that her firm has not agreed to any
variations from its standard billing arrangements for its
employment with the fee examiner, and that the firm has not
previously represented the fee examiner in connection with the
bankruptcy case.
Benesch can be reached through:
Jennifer R. Hoover, Esq.
William M. Alleman, Jr., Esq.
222 Delaware Avenue, Suite 801
Wilmington, DE 19801
Phone: 302-442-7010
Fax: 302-442-7012
Email: jhoover@beneschlaw.com
Email: walleman@beneschlaw.com
About Samson Resources Corporation
Samson Resources Corporation, et al., filed Chapter 11 bankruptcy
petitions (Bankr. D. Del. Lead Case No. 15-11934) on Sept. 16,
2015. Philip W. Cook, the executive vice president and CFO, signed
the petition. The Debtors estimated assets and liabilities of more
than $1 billion.
Samson is an onshore oil and gas exploration and production company
with interests in various oil and gas leases primarily located in
Colorado, Louisiana, North Dakota, Oklahoma, Texas, and Wyoming.
The Operating Companies operate, or have royalty or working
interests in, approximately 8,700 oil and gas production sites.
Samson was acquired by KKR and Crestview from Charles Schusterman
in December 2011 for approximately $7.2 billion. The investor
group provided approximately $4.1 billion in equity investments as
part of the purchase price.
Kirkland & Ellis LLP represents the Debtors as general counsel.
Klehr Harrison Harvey Branzburg LLP is the Debtors' local counsel.
Alvarez & Marsal LLC acts as the Debtors' financial advisor.
Blackstone Advisory Partners L.P. serves as the Debtors' Investment
banker. Garden City Group, LLC, serves as claims and noticing
agent to the Debtors.
Andrew Vara, acting U.S. trustee for Region 3, appointed three
creditors of Samson Resources Corp. and its affiliated debtors to
serve on the official committee of unsecured creditors. The
Committee has tapped White & Case LLP as counsel and Farnan LLP as
local counsel.
SANTA FE MEDICAL GROUP: PCO's Equitable Apportionment Bid Denied
----------------------------------------------------------------
Judge David T. Thuma of the United States Bankruptcy Court for the
District of New Mexico denied movant Susan N. Goodman's motion for
equitable apportionment filed in the bankruptcy case captioned In
re: SANTA FE MEDICAL GROUP, LLC, Debtor, No. 15-11247-ta7 (Bankr.
D.N.M.), holding that nothing in the Bankruptcy Code gives the
Court authority to order chapter 11 professionals to disgorge upon
insolvency.
Susan N. Goodman, as the Patient Care Ombudsman for the debtor,
filed the Motion for Equitable Apportionment of Final Professional
Fees to Include the Patient Care Ombudsman. The United States
Trustee's office supports the motion; the other chapter 11
professionals oppose it. The New Mexico Taxation and Revenue
Department supports the motion, provided it can share ratably in
any disgorged amounts.
According to Judge Thuma, the motion raises an issue of statutory
construction that has been addressed by courts over the years, with
inconsistent results.
The Court has reviewed the case law and the relevant sections of
the Code, and concludes that Congress did not intend to give
bankruptcy courts authority to order disgorgement upon insolvency.
Using Sections 105, 329-331, and/or 729 to create such a remedy
would be an improper encroachment on legislative power and a
misreading of the Code, Judge Thuma said.
Judge Thuma stated that "the Court is sympathetic to Goodman's
plight. Administrative insolvency is a serious hardship on any
creditor, professional or otherwise. Goodman provided valuable
professional services to this estate and did not get paid for
them."
The judge pointed out that although it offers little comfort here,
there are Code provisions that provide some protection to chapter
11 professionals and other administrative expense claimants. First,
as shown above, Section 330(a)(5) allows for disgorgement in
limited circumstances. Second, chapter 11 professionals can seek
conversion, dismissal, or the appointment of a trustee if the
debtor in possession does not pay them. Third, unpaid professionals
can ask for a status conference on short notice. Fourth, a
professional can ask that orders allowing interim payment of
professional fees be modified or suspended if the debtor in
possession is favoring some professionals over others. The Court
likely would be receptive to these requests where the chapter 11
case is sliding towards administrative insolvency, the judge said.
Judge Thuma concluded that nothing in the Code gives the Court
authority to order chapter 11 professionals to disgorge upon
insolvency. Rather, a review of the relevant Code sections shows
that Congress deliberately omitted such a remedy, while the Supreme
Court's ruling in Law v. Seigel prevents the Court from just doing
equity. The motion for equitable apportionment therefore must be
denied.
A full-text copy of the Opinion dated September 15, 2016 is
available at https://is.gd/xLbwNS from Leagle.com.
Santa Fe Medical Group, a Limited Liability Company, a New Mexico
limited liability company, Debtor, is represented by Scott Kent
Brown, II, Esq. -- sbrown@lrrc.com -- Lewis Roca Rothgerber
Christie LLP, Justin J. Henderson, Esq. -- jhenderson@lrrc.com --
Lewis Roca Rothgerber Christie LLP, Steven Tal Young, Esq.
Philip J. Montoya, Trustee, is represented by Spencer Lewis
Edelman, Esq. -- Modrall Sperling Roehl, Harris & Sisk PA.
United States Trustee, U.S. Trustee, is represented by Ronald
Andazola, Assistant US Trustee, Alice Nystel Page, Office of U.S.
Trustee.
Santa Fe Medical Group, a Limited Liability Group (Bankr. D.N.M.,
Case No. 15-11247), Atrinea Ruidoso, LLC, a New Mexico Limited
Liability Company (Bankr. D.N.M., Case No. 15-11248), Atrinea
Health, LLC, a New Mexico Limited Liability Company (Bankr.
D.N.M.,
Case No. 15-11250), and Corazon Family Health, PC (Bankr. D.N.M.,
Case No. 15-11252), sought protection under Chapter 11 of the
Bankruptcy Code on May 14, 2015.
The Debtors are represented by Steven Tal Young, Esq., at Tal
Young, P.C., in Albuquerque, New Mexico, and Lewis Roca Rothgerber
LLP.
SCRAP METAL: Plan Confirmation to be Heard on Nov. 16
-----------------------------------------------------
The Hon. Bill Parker of the U.S. Bankruptcy Court for the Eastern
District of Texas entered an order conditionally approving the
Disclosure Statement of Scrap Metal Solutions, LLC, in support of
its Plan of Reorganization.
A hearing will be convened on Nov. 16, 2016, at 10:30 a.m., to
consider final approval of the Disclosure Statement and
confirmation of the Chapter 11 Plan.
Scrap Metal Solutions, LLC filed a Chapter 11 petition in the U.S.
Bankruptcy Court for the Eastern District of Texas (Case No.
16-60193) on March 22, 2016. The Debtor estimated $1 million to
$10 million in assets and liabilities. Michael E. Gazette, Esq.,
of The Law Offices of Michael E. Gazette.
SEI HOLDING: Moody's Lowers CFR to Caa1, Outlook Stable
-------------------------------------------------------
Moody's Investors Service downgraded SEI Holding I Corporation's
Corporate Family Rating to Caa1 from B3 and Probability of Default
Rating (PDR) to Caa1-PD from B3-PD. Concurrently, Moody's
downgraded the first lien senior secured debt to Caa1 from B2 and
the second lien senior secured credit facility to Caa3 from Caa2.
The ratings outlook is stable.
Rating actions:
Issuer: SEI Holding I Corporation
Corporate Family Rating, Downgraded to Caa1 from B3;
Probability of Default Rating, Downgraded to Caa1-PD from B3-PD;
Senior Secured First Lien Term Loan, Downgraded to Caa1 (LDG3)
from B2 (LGD3);
Senior Secured Second Lien Term Loan, Downgraded to Caa3 (LGD5)
from Caa2 (LGD5);
Outlook, Stable
RATINGS RATIONALE
The rating downgrades reflects Moody's expectation of lingering
weakness in customer spending across the company's end markets over
the next year, particularly the oil & gas and mining markets. The
substantial drop-off in demand has led to deteriorating operating
performance and credit metrics, including leverage at around 9
times (inclusive of Moody's standard adjustments), which is high
for the rating category. As a rapid end-market recovery is
unlikely in the intermediate term, Moody's anticipates that
leverage will remain elevated and margins under pressure, despite
cost cutting initiatives.
Moody's expects the company's liquidity to remain adequate,
benefiting from good working capital management to the extent that
inventories are sufficiently available, positive (albeit lower than
historical) EBITA margins in the mid to high single digit range,
and adequate availability under the ABL revolving facility.
Positive free cash generation, anchored by working capital release,
low capex requirements and a variable cost structure, support the
liquidity profile. Moody's does not anticipate borrowings will
trigger the springing fixed charge coverage ratio, which applies if
excess availability is less than the greater of 10% of the
borrowing base or $8 million. Moody's expects the company to
maintain its fixed charge coverage above 1.5 times. The company's
low cash balances will likely lead it to fund additional tuck-in
acquisitions with the revolver. This could weaken the credit
profile temporarily until such time as the acquisition would
provide a positive contribution to earnings.
The stable ratings outlook reflects Moody's expectation that SEI
will maintain an adequate liquidity profile, despite end market
headwinds, and continue managing costs to help offset the negative
impact of revenue declines. The outlook does not anticipate any
large debt-funded acquisitions.
The ratings could be downgraded if free cash flow turns negative
and/or business conditions continue to deteriorate whereby credit
metrics further weaken and leverage remains above 8 times on a
sustained basis. EBITA to interest below 1 times could lead to
downwards rating pressure as could shareholder-friendly actions
that compromise debt-holder interests.
A ratings upgrade is unlikely over the near term, given the
weakness in the company's end markets. Longer term, if there were
a meaningful improvement in the energy and mining markets and
leverage fell below 6.5 times, with the company reporting
meaningful and consistent growth in organic revenues and EBITDA,
positive ratings traction could develop.
The two-notch downgrade in the rating of the first lien term loan
and the one-notch downgrade in that of the second lien term loan,
to Caa1 and Caa3, respectively, incorporate the impact of the lower
CFR and their respective proportions of the company's capital
structure.
The principal methodology used in these ratings was Business and
Consumer Service Industry published in October 2016.
SEI Holding I Corporation and Bishop Lifting Products, Inc., are
intermediate subsidiaries of the ultimate holding company: SBP
Holding LP. The company, based in Pearland, Texas, offers critical
value added services and distribution of industrial rubber, wire
rope & rigging, as well as various other related services including
testing, installation, inspection, and equipment rental. The
company recently acquired Future Hydraulik, a Quebec-based
distributor of hydraulic hose. Pro-forma revenues for the LTM
period ended Aug. 31, 2016, were approximately
$330 million.
SERTA SIMMONS: S&P Affirms 'B' CCR; Outlook Stable
--------------------------------------------------
S&P Global Ratings affirmed its ratings, including its 'B'
corporate credit rating, on Atlanta-based bedding company Serta
Simmons Bedding LLC. The outlook is stable.
"The ratings affirmation reflects our belief that Serta Simmons
will be able to gradually deleverage following the refinancing and
leveraged dividend transaction," said S&P Global Ratings credit
analyst Bea Chiem.
S&P assigned its 'B' issue-level rating and '3' recovery rating to
the company's proposed $1.9 billion first-lien term loan due 2023,
indicating S&P's expectations for meaningful (50% to 70%) recovery
in the event of a payment default at the lower end of the range.
S&P also assigned its 'CCC+' issue-level and '6' recovery ratings
to the company's proposed $500 million second-lien term loan due
2024, indicating our expectations for negligible (0% to 10%)
recovery in the event of a payment default. The borrowers under
the proposed credit facilities are Serta Simmons Bedding LLC,
National Bedding Company LLC, and SSB Manufacturing Co.
Proceeds from the new facilities, along with about $140 million in
cash from the balance sheet, will be used to refinance the
company's outstanding $1.8 billion term loan B and senior notes,
pay $670 million in extraordinary dividends to shareholders, and
cover breakage costs on the notes and fees and expenses. S&P will
withdraw its ratings on the company's existing term loan B and
senior notes following the close of this transaction. All new
issue- and recovery ratings assigned are subject to review upon
receipt and review of final documentation.
S&P estimates pro forma adjusted debt following this transaction of
approximately $2.6 billion.
SH 130 CONCESSION: Not In Compliance With Contract, Says TxDOT
--------------------------------------------------------------
The Texas Department of Transportation ("TxDOT") by and through the
Office of the Texas Attorney General, filed a limited objection to
the disclosure statement explaining SH 130 Concession Company, LLC,
et al.'s proposed Joint Plan of Reorganization.
"The dilemma is that consummation of the plan is wholly contingent
on Debtor's assumption of its sole asset, a 50 year concession
contract with TxDOT. The contract with TxDOT pertains to the
financing, construction, maintenance and operation of the 40 mile
toll road on segments 5 & 6 of State Highway 130 (the "Toll Road"),
including rights to the toll revenues generated by the Toll Road
over the term of the contract. Debtor intends to assume the TxDOT
executory contracts and cure all defaults, but the path laid by
Debtors diverges from the requirements of those contracts and sets
the Reorganized Debtor up for a material breach of the contracts.
Those potential material breaches include, failure to obtain TxDOT
approval for the New Operator as a Key Contractor and failure to
obtain TxDOT approval of any new Key Personnel, as required by the
Facility Concession Agreement (the "Concession Agreement" or
"FCA"), and also a failure to address the Persistent Developer
Default."
TxDOT points out, among other things that, that the Debtor is not
in compliance with the Concession Agreement and is facing a
potential material default under the terms of the contract.
Correcting this issue cannot be separated from the consideration of
the Disclosure Statement or the Proposed Plan, according to TxDOT.
TxDOT notes that the Debtor currently employs Cintra
Infraestructuras S.A. as "Operator" to supply key services for the
performance of the contract. The Debtor's plan says it intends to
replace Cintra with a new operator, not identified. The Plan
further states that Cintra will continue to supply services for a
period of not more than 18 months. On information and belief
formed after inquiry to debtor and lender's counsel, no such
transition agreement with Cintra yet exists or has been signed,
TxDOT points out.
A full-text copy of the Objection is available at:
http://bankrupt.com/misc/txwb15-10262_312_DS_Ob_SH_130.pdf
The Chapter 11 Plan
SH 130 Concession Company, LLC, et al., filed a Joint Plan of
Reorganization that provides that holders of general unsecured
trade claims will have a 100% recovery and are unimpaired. A copy
of the Disclosure Statement is available at:
http://bankrupt.com/misc/txwb16-10262-288.pdf
About SH 130 Concession
Headquartered in Buda, Texas, SH 130 Concession Company, LLC (the
"Concessionaire") was formed to finance, develop, design,
construct, operate, and maintain segments five and six of Texas
State Highway 130 in partnership with the Texas Department of
Transportation.
The Concessionaire, Zachry Toll Road - 56 LP and Cintra TX 56 LLC
filed Chapter 11 bankruptcy petitions (Bankr. W.D. Tex. Case Nos.
16-10262, 16-10263 and 16-10264, respectively) on March 2, 2016.
The petitions were signed by Alfonso Orol as chief executive
officer. The Debtors estimated both assets and debts in the range
of $1 billion to $10 billion.
Toll Road - 56 and TX 56 are holding companies that collectively
hold the equity interests in the Concessionaire. They have no
operations and have no creditors.
The Debtors have engaged Gibson, Dunn & Crutcher LLP as general
counsel, Jackson Walker L.L.P. as local counsel, and Prime Clerk
LLC as notice, claims, solicitation, balloting and tabulation
agent.
Judge Tony M. Davis has been assigned the case.
SHANGOL INC: Case Summary & 14 Unsecured Creditors
--------------------------------------------------
Debtor: Shangol, Inc.
dba The Atrium Country Club
609 Eagle Rock Ave.
West Orange, NJ 07052
Case No.: 16-29313
Nature of Business: Single Asset Real Estate
Chapter 11 Petition Date: October 9, 2016
Court: United States Bankruptcy Court
District of New Jersey (Newark)
Judge: Hon. Stacey L. Meisel
Debtor's Counsel: David L. Stevens, Esq.
SCURA, WIGFIELD, HEYER & STEVENS, LLP
1599 Hamburg Turnpike
Wayne, NJ 07470
Tel: 973-696-8391
E-mail: dstevens@scuramealey.com
Estimated Assets: $0 to $50,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Albert Nazarian, president.
A copy of the Debtor's list of 14 unsecured creditors is available
for free at http://bankrupt.com/misc/njb16-29313.pdf
SHELTON FEDERAL GROUP: Monetary Judgment Enforceable by Execution
-----------------------------------------------------------------
In the bankruptcy case captioned In re SHELTON FEDERAL GROUP, LLC,
(Chapter 11), Debtor, No. 15-00623, a prior order -- Order Granting
Industrial Banks Motion (I) To Compel Compliance With Rule 2004
Examination Order Entered Against Shelton Federal Group, LLC, (II)
Designating Christopher Shelton as a Person in Control of Shelton
Federal Group, LLC, and (III) for Imposition Of Sanctions Against
Shelton Federal Group, LLC, Rosewitha Shelton and Christopher
Shelton -- directed that Industrial Bank was entitled to recover
its fees in pursuing the motion that led to that order. The debtor
has filed an objection to Joseph Pulver's affidavit of fees filed
by Industrial Bank.
The debtor objects that: (1) The Court entered an Order awarding
the creditor Industrial Bank fees related to the filing of the
Motion to Compel; and (2) The Court Order was specific and did not
propose additional relief as identified in the proposed order
submitted by Joseph Pulver.
The proposed order directs that it is "ORDERED, that within ten
(10) days of the date of this Order, the Debtor, Rosewitha Shelton
and Christopher Shelton shall deliver payment in full of the Award
to Industrial Bank, in readily available funds."
Judge S. Martin Teel, Jr., of the United States Bankruptcy Court
for the District of Columbia agrees with the debtor that the
provision above ought not be included in the order, saying the
provision improperly suggests that a failure to pay will be
enforceable by way of a contempt motion. Instead, the order will be
treated as a monetary judgment that is enforceable through
execution and other remedies, Judge Teel said.
The order awarding fees in Misc. No. 16-20002 will be treated the
same way. The clerk shall docket a copy of this Memorandum Decision
in Misc. No. 16-20002.
A full-text copy of the Memorandum Decision dated September 14,
2016 is available at https://is.gd/bSRisG from Leagle.com.
Shelton Federal Group, LLC, Debtor, is represented by William C.
Johnson, Jr., Esq. -- Law Offices of William C. Johnson, Jr..
Christopher Shelton, Respondent, is represented by Carmiece T.
Graves, Esq. -- The Law Offices of Carmiece T. Graves & Erick R.
Tyrone, Esq. -- The Tyrone Law Group, LLC.
Marc E. Albert, Trustee, is represented by Tracey Michelle Ohm,
Esq. -- Stinson Leonard Street LLP & Seth Adam Robbins, Esq. --
obbins Law Group, PLLC.
SOTERA WIRELESS: Can Use Cash Collateral on Interim Basis
---------------------------------------------------------
Judge Laura S. Taylor of the U.S. Bankruptcy Court for the Southern
District of California authorized Sotera Wireless, Inc., and Sotera
Research, Inc. to use cash collateral on an interim basis.
Judge Taylor acknowledged that the Debtors do not have sufficient
available resources of working capital and financing to carry on
operations without the use of cash collateral. She further
acknowledged that the Debtors need to use cash collateral to
continue their business operations in an orderly manner, maintain
business relationships, and satisfy other working-capital and
operational needs.
The approved Budget covers a 13-week period, beginning on Sept. 30,
2016 and ending on the week beginning Dec. 23, 2016. The Budget
provides for total fixed and semi-fixed disbursements in the amount
of $497,000 for the week beginning Oct. 14, 2016; and $421,000 for
the week beginning Oct. 28, 2016.
Prepetition Lenders Silicon Valley Bank and Oxford Finance, LLC,
were granted a replacement lien in the Debtors' assets to the same
extent, validity, and priority of their prepetition liens in the
prepetition collateral. The Prepetition Lenders were also granted
an additional lien in the Debtors' Intellectual Property, in an
amount equal to the total diminution in the value of the cash
collateral over the interim period, as well as an allowed
superpriority claim to the extent that the Prepetition Lenders have
an allowable claim.
A final hearing on the Debtor's use of cash collateral is scheduled
on Oct. 11, 2016 at 2:00 p.m.
A full-text copy of the Interim Order, dated Oct. 7, 2016, is
available at
http://bankrupt.com/misc/SoteraWireless2016_1605968lt11_43.pdf
About Sotera Wireless
Sotera Wireless, Inc., and Sotera Reseach, Inc., filed chapter 11
petitions (Bankr. S.D. Cal. Case Nos. 16-05968 and 16-05969) on
Sept. 30, 2016. The Debtors have requested the joint
administration of their cases. The Debtors are represented by
Victor A. Vilaplana, Esq. and Marshall J. Hogan, Esq., at Foley &
Lardner LLP. The cases are assigned to Judge Laura S. Taylor. At
the time of the filing, Sotera Wireless estimated assets and
liabilities at $10 million to $50 million, while Sotera Research
estimated assets at $1 million to $10 million and liabilities at
$10 million to $50 million.
SOUTHWEST HOLDINGS: Seeks to Hire Kutak Rock as Special Counsel
---------------------------------------------------------------
Southwest Holdings Group, Inc. seeks approval from the U.S.
Bankruptcy Court for the District of Arizona to hire Kutak Rock,
LLP as special counsel.
The firm will represent the Debtor in its case against Thomas
Luikens and several others pending before the bankruptcy court.
Doug Allsworth, Esq., the attorney designated to represent the
Debtor, will be paid an hourly rate of $375, and will receive
reimbursement for work-related expenses.
Kutak Rock does not represent or hold any interests adverse to the
Debtor or its bankruptcy estate, according to court filings.
The firm can be reached through:
Doug Allsworth, Esq.
Kutak Rock, LLP
8601 North Scottsdale Road, Suite 300
Scottsdale, AZ 85253-2738T
Phone: (480) 429-5000
Fax: (480) 429-5001
Email: douglas.allsworth@kutakrock.com
The Debtor is represented by:
Carlos M. Arboleda, Esq.
Arboleda Brechner, Attorneys at Law
4545 East Shea Blvd., Suite 120
Phoenix, AZ 85028
Tel: 602-953-2400
Fax: 602-482-4068
Email: arboledac@abfirm.com
About Southwest Holdings Group
Southwest Holdings Group, Inc. sought protection under Chapter 11
of the Bankruptcy Code (Bankr. D. Ariz. Case No. 14-18253) on
December 12, 2014. The petition was signed by Ronald Peterson,
president.
At the time of the filing, the Debtor estimated assets of less than
$50,000 and liabilities of $1 million to $10 million.
STARDUST FINANCE: Moody's Puts B2 CFR Under Review for Upgrade
--------------------------------------------------------------
Moody's Investors Service placed Stardust Finance Holdings, Inc.'s
(doing business as "Forterra Building Products" or "Forterra" and
previously known as "Hanson Building Products") ratings under
review for upgrade following the announcement of its intention to
launch an initial public offering (IPO). Moody's has placed
Stardust Finance Holding, Inc.'s B2 Corporate Family Rating, B2-PD
Probability of Default Rating, and the ratings assigned to its
other debt instruments under review.
The company expects to raise approximately $368 million in proceeds
from the IPO. As part of this transaction, the newly created
borrowing entity Forterra Finance, LLC will raise a new $300
million ABL revolver (not rated) and a new $1,000 million senior
lien term loan to refinance its existing debt in conjunction with
the announced IPO. In related actions, Moody's assigned a B1
rating to the proposed $1,000 million senior lien term loan due
2023.
This is a summary of the ratings placed under review for upgrade
for Stardust Finance Holdings, Inc.:
-- Corporate family rating, currently B2;
-- Probability of Default Rating, currently B2-PD;
-- $1,145 million senior secured first lien term loan due 2022,
currently B2 (LGD3);
-- $260 million senior secured second lien term loan due 2023,
currently Caa1 (LGD5).
Rating Actions taken on Forterra Finance, LLC:
-- $1,000 million senior secured first lien term loan due 2023,
assigned B1 (LGD4).
Outlook Actions:
Stardust Finance Holdings, Inc.
-- Outlook revised to Rating Under Review for upgrade from
Stable
Forterra Finance, LLC
-- Outlook assigned Stable
RATINGS RATIONALE
The decision to place Forterra's ratings under review for upgrade
was prompted by the company's announcement that it would launch an
IPO and list its shares on NASDAQ. Pro-Forma for the transaction,
Forterra's leverage (measured as Moody's adjusted debt-to-EBITDA)
is expected to drop to around 3.7x by fiscal year-end on Dec. 31,
2016. Forterra's coverage (measured as EBITA-to-Interest Expense)
would also improve to approximately 3.3x by fiscal year-end from
1.4x as of June 30, 2016. This improvement in Forterra's credit
metrics would surpass previously stated upgrade triggers. Moody's
expects further deleveraging during the next 12 to 18 months, as
the company continues to benefit from an expanded revenue base
and --potentially- higher margins. Moody's views the announced IPO
and the corresponding refinancing of the existing term loan and ABL
revolver as a credit positive. Moody's continues to expect
Forterra to perform well during Moody's time horizon with annual
sales approaching $1,700 million by FYE 2016 while maintaining
gross margins above the 17% mark.
WHAT COULD CHANGE RATINGS UP/DOWN
Prior to placing the ratings under review for upgrade, Moody's had
indicated that positive rating actions could ensue if Forterra's
operating performance exceeded our expectations and resulted in:
1) Moody's adjusted debt-to-EBITDA sustained below 4.0x; 2)
Interest coverage (measured as EBITA-to-Interest Expense),
sustained above 2.5x; 3) Consistent levels of positive free
cash flow were maintained; and 4) Forterra demonstrated
financial policies that balanced credit improvement with
growth and equity return goals.
The principal methodology used in these ratings was "Global
Manufacturing Companies" published in July 2014.
Headquartered in Irving, Texas, and operating under the brand name
"Forterra Building Products" (formerly "Stardust Finance Holdings,
Inc." and previously "Hanson Building Products"), manufactures
concrete and clay building products in the United States and
Canada. The company operates under three segments: 1) Drainage
Pipe & Products 2) Water Pipe & Products and 3) Forterra Brick. For
the twelve months ended June 30, 2016, Forterra generated $1,460
million of revenue and $216.4 million of Moody's adjusted EBITDA.
All calculations include Moody's standard adjustments.
STONE PANELS: Has Until Nov. 7 to Use PrivateBank Cash Collateral
-----------------------------------------------------------------
Judge Harlin DeWayne Hale of the U.S. Bankruptcy Court for the
Northern District of Texas authorized Stone Panels, Inc., and Stone
Panels Holding Corp. to use The PrivateBank and Trust Company's
cash collateral on a final basis, through November 7, 2016.
The Debtors were indebted to PrivateBank in the amount of
$9,246,619. The indebtedness was paid down by $4,752,627 via a
post-petition payment from Thompson Street Capital Partners III,
L.P., a guarantor of the Debtors' obligations under the Prepetition
Loan Documents.
PrivateBank was granted security interests in and liens upon all or
substantially all of Debtors' tangible and intangible personal
property and assets.
Judge Hale acknowledged that the ability of the Debtors to finance
their operations, to preserve and maintain the value of the
Debtors' assets and maximize a return for all creditors requires
the availability of the Cash Collateral. He further acknowledged
that without the use of cash collateral, the continued operation of
the Debtors' businesses would not be possible, and serious and
irreparable harm to the Debtors, their estates, creditors, and
equity holders would occur.
The Debtors were directed to make monthly adequate protection
payments to PrivateBank in the amount of $20,000, beginning on Aug.
31, 2016. They were also directed to make monthly payments in an
amount equal to 10% of the aggregate amount of the excess of actual
monthly Receipts over budgeted monthly Receipts, beginning on Sept.
1, 2016.
PrivateBank was granted a replacement lien in the Prepetition
Collateral and in the post-petition property of the Debtors of the
same nature and to the same extent and in the same priority it had
in the Prepetition Collateral. PrivateBank was also granted an
allowed superpriority adequate protection claim to the extent the
Adequate Protection Liens are shown to be inadequate to protect
PrivateBank against the diminution in value of the Prepetition
Collateral.
A full-text copy of the Order, dated October 7, 2016, is available
at
http://bankrupt.com/misc/StonePanelsInc2016_1632856hdh11_171.pdf
About Stone Panels
Stone Panels, Inc., manufactures natural stone composite panels for
exterior, interior, renovation, elevator, and specialty
applications in the United States, France, Europe, and
internationally.
Stone Panels, Inc., and Stone Panels Holding Corp. filed chapter 11
petitions (Bankr. N.D. Tex. Lead Case Nos. 16-32856) on July 21,
2016. The petitions were signed by Tim Friedel, the president and
CEO. Judge Barbara J. Houser is assigned to the cases. The
operating company estimated its assets at $10 million to $50
million, the Holding company estimated its assets at less than
$50,000, and both companies estimated their liabilities at $10
million to $50 million at the time of the filing.
The Debtors have hired Waller Lansden Dortch & Davis LLP as
counsel, Gray Reed & SSG Advisors, LLC, as investment banker and
Bill Roberts of CR3 Partners as chief restructuring officer.
The U.S. Trustee formed an Official Committee of Unsecured
Creditors, with 4 members: Brookside Mezzanine Fund III, L.P., IMAP
Global Logistics, Elite on Premise, and Brick-Works UK Ltd. The
Official Committee of Unsecured Creditors is represented by Culhane
Meadows, PLLC.
SUNEDISON INC: Seeks to Hire Binswanger as Real Estate Agent
------------------------------------------------------------
SunEdison, Inc. seeks approval from the U.S. Bankruptcy Court for
the Southern District of New York to hire Binswanger of Texas,
Inc.
The firm will serve as real estate agent for SunEdison and its
affiliates in connection with the sale of their property located at
6800 U.S. Highway 75, Sherman, Texas.
The property consists of nearly 700,000 square feet of industrial
space previously used for silicon wafer manufacturing by the
Debtors, which sits on 78 acres of land.
Fifteen companies have already been identified as potential buyers
for the property. If the property is sold to one of these buyers,
Binswanger will be paid a commission of 3% of the gross aggregate
purchase price while Keen-Summit Capital Partners LLC, the Debtors'
real estate advisor, will be paid a commission of 1%.
If the property is not sold to any of the 15 potential buyers but
to another company, Binswanger and Keen-Summit will each be paid a
commission of 2%.
Daniel Cullen, executive vice-president of Binswanger, disclosed in
a court filing that the firm is a "disinterested person" as defined
in section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Daniel F. Cullen
Binswanger
Two Logan Square
Philadelphia, PA 19103
Tel: 1.215.448.6000
Fax: 1.215.448.6238
Email: fgbiii@binswanger.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, the senior vice
president, general counsel and secretary, signed the petitions.
The Debtors disclosed total assets of $20.7 billion and total debt
of $16.1 billion as of Sept. 30, 2015.
The Debtors have hired Skadden, Arps, Slate, Meagher & Flom LLP as
counsel, Togut, Segal & Segal LLP as conflicts counsel, Rothschild
Inc. as investment banker and financial advisor, McKinsey Recovery
& Transformation Services U.S., LLC, as restructuring advisors and
Prime Clerk LLC as claims and noticing agent. The Debtors employed
PricewaterhouseCoopers LLP as financial advisors; and KPMG LLP as
their auditor and tax consultant.
An official committee of unsecured creditors has been appointed in
the case. The committee tapped Weil, Gotshal & Manges LLP as its
general bankruptcy counsel and Morrison & Foerster LLP as special
counsel.
SUNPOWER BY RENEWABLE: Seeks to Employ BMG as Bookkeepers
---------------------------------------------------------
Sunpower by Renewable Energy Electric, Inc seeks authorization from
the U.S. Bankruptcy Court for the District of Nevada to employ
Branson Management Group, Inc., as bookkeepers, nunc pro tunc to
the August 12, 2016 petition date.
The Debtor requires BMG to:
(a) maintain bookkeeping entry into QuickBooks Online
software- costs of the software is at the expense of the client;
(b) process the monthly bank reconciliation; and,
(c) communicate with the client and client CPA for
confirmation of expense categories.
BMG will be paid at an hourly rate of $40 and will be reimbursed
for reasonable out-of-pocket expenses incurred.
The Debtor tells the Court that BMG's representation as accountants
to the Debtor does not conflict with the interests of the Debtor or
its estate in the Debtor's Chapter 11 case. BMG is owed $4,670.00
for prepetition services; however, BMG has agreed to waive the fee.
Teresa Branson, President of BMG, assured the Court that BMG 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.
BMG can be reached at:
Teresa Branson
BRANSON MANAGEMENT GROUP, INC.
Henderson NV 89077
Tel.: 702-492-9439
Fax: 702-492-9537
Email: Teresa@BransonMG.com
About Sunpower by Renewable Energy
Sunpower by Renewable Energy Electric, Inc. filed a chapter 11
petition (Bankr. D. Nev. Case No. 16-14459-led) on August 12, 2016.
The petition was signed by Jason M. Vita, president.
The case is assigned to Honorable Laurel E. Davis. The Debtor is
represented by Samuel A. Schwartz, Esq. and Bryan A. Lindsey, Esq.,
at Schwartz Flansburg PLLC.
The Debtor is a solar energy company and provides solar energy
services, including the assessment and installation of solar panels
to residential and commercial customers in Nevada, Arizona and
California.
At the time of filing, the Debtor estimated assets at $1 million to
$10 million 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/nvb16-14459.pdf
TAKATA CORP: Said to Hire Weil Gotshal With Bankruptcy Option
-------------------------------------------------------------
Jodi Xu Klein, writing for Bloomberg News, reported that Takata
Corp., whose defective airbag inflators triggered the biggest
recall in auto industry history, hired law firm Weil Gotshal &
Manges LLP to help it weigh options that could include bankruptcy
or a sale, according to people with knowledge of the matter.
The Japanese manufacturer might choose to seek court protection
just for its U.S. unit, said one of the people, who asked not to be
named because the discussions are private, according to the report.
No final decisions have been made and Tokyo-based Takata continues
to seek buyers, the people said, the report related.
Takata is evaluating at least five bids as it confronts the
potentially massive cost of recalling 100 million faulty airbag
inflators worldwide and lawsuits tied to at least 16 deaths and
numerous injuries, the Bloomberg report said. The airbags tend to
degrade over time and erupt, sending shrapnel through the vehicle's
cabin, the report noted.
The Troubled Company Reporter, on Sept. 21, 2016, citing Bloomberg,
reported that on Sept. 20 Takata shares fell 12 percent in Tokyo
trading as bidders for the air-bag maker were said to consider the
possibility of some form of bankruptcy proceedings for the Japanese
company behind the auto industry's biggest ever safety recall.
According to the report, the shares posted their biggest decline
since March 30 to 374 yen on Sept. 20. The drop was the biggest
on
the benchmark Topix index and reduced the company's market value
to
31.1 billion yen ($305 million), the report related.
Bidders for Tokyo-based Takata have been asked to submit their
proposals by early this week, and suitors include Carlyle Group
LP,
which is working with Chinese-owned air-bag manufacturer Key
Safety
Systems Inc.; Daicel Corp., a Japanese manufacturer of air-bag
inflators that's jointly bidding with Bain Capital; and KKR & Co.,
the report further related, citing people familiar with the
matter.
Some of the bidders are considering the possibility of bankruptcy
proceedings for Takata as an option to mitigate liabilities, the
people said, asking not to be identified because the deliberations
are confidential, the report said.
The company aims to shortlist two to three candidates by October,
said the people, who asked not to be identified because the
information is confidential, the report added.
Pursuing bankruptcy could result in very low repayment to debt
holders, Nobuhiko Anbiru, a senior credit analyst at Mitsubishi
UFJ
Morgan Stanley, said, Bloomberg cited. While bondholders have
been
repaid about 10 percent in recent bankruptcy cases in Japan,
Takata's car-making customers and sponsors may agree to support
Takata and the notes could be redeemed at maturity, the report
further cited Mr. Anbiru.
About Takata Corp.
Japan-based Takata Corporation (TYO:7312) --
http://www.takata.com/en/--develops, manufactures and sells
safety products for automobiles. The Company offers seatbelts,
airbags, steering wheels, child seats and trim parts. The Company
has subsidiaries located in Japan, the United States, Brazil,
Germany, Thailand, Philippines, Romania, Singapore, Korea, China
and other countries.
TALEN ENERGY: Moody's Assigns Ba1 Rating on $600MM Sr. Term Loan
----------------------------------------------------------------
Moody's Investors Service assigned a Ba1 rating to a $600 million
seven year senior secured term loan to be issued by Talen Energy
Supply, LLC, upon the closing of its proposed merger with an
affiliate of Riverstone Holdings LLC. The remainder of Talen's
ratings, including its Ba3 corporate family rating, remain under
review pending satisfaction of the merger conditions.
RATINGS RATIONALE
The Ba1 rating assigned to the term loan is driven by its expected
priority position in Talen's post-merger capital structure and
reflects our view that, upon conclusion of the merger, Talen's
corporate family rating (CFR), which is currently under review for
downgrade, would likely move down by one notch, to B1. Moody's
view is based on its current understanding of the transaction, and
considers the resulting financial and operating prospects for
Talen, which includes reduced financial flexibility as a result of
increased leverage and lower liquidity. This reduced flexibility
comes at a time when the merchant power market remains in the midst
of a prolonged cyclical downturn.
The review of Talen's CFR was prompted by a merger agreement
between Talen and Riverstone whereby Riverstone agreed to acquire
the approximately 65% of Talen that it does not already own for
total consideration of about $1.2 billion. The transaction is to
be funded primarily with approximately $1 billion of cash on
Talen's balance sheet, along with about $250 million of term loan
proceeds from this issuance. The remaining $350 million of the
term loan proceeds will be used to repay outstanding revolver loans
that were used to repay debt maturing in May 2016. The transaction
is subject to customary conditions including the approval of
Talen's shareholders and the Nuclear Regulatory Commission.
Shareholder consent was obtained on Oct. 6, and Talen anticipates
closing will occur before year-end.
Upon closing of the merger, Moody's anticipates Talen's
consolidated funded debt will be about 15% higher than previously
envisioned considering Talen's pre-merger debt reduction efforts,
which included the repayment of $350 million of debt that came due
in May 2016 with proceeds from asset sales. As a result, and based
on current market conditions for merchant power companies, we
anticipate Talen's key cash flow credit metrics will remain at
levels more in line with the "B" scoring ranges in Moody's rating
methodology for unregulated power companies.
Given the current commodity price environment, Moody's anticipates
Talen's ratio of cash from operations excluding changes in working
capital (CFO pre-W/C) to total debt will generally remain near 10%,
and its interest coverage ratio will remain near 3.0x. In
addition, we anticipate cash flow from operations after payments
for maintenance capital expenditures and nuclear fuel will be under
5% and below that of other independent merchant generating peers
such as NRG Energy, Inc. (Ba3 stable) and Calpine Corporation (Ba3
stable).
The term loan lenders benefit from guarantees and first lien
security interests from all of Talen's material subsidiaries with
the exception of the gas-fired MACH Gen, LLC assets (Athens,
Millennium and Harquahala) acquired in late 2015. The structure
requires mandatory prepayments equal to 50% of excess cash flow
when the senior secured leverage ratio is greater than 3.25x;
reducing to 25% of excess cash flow when the ratio is greater than
2.25x and 0% when the ratio is less than 2.25x. At closing,
Moody's estimates the senior secured leverage ratio will be under
1.0x. There are no financial covenants.
Rating Outlook
Talen's existing ratings are under review. To the extent the
merger transaction is consummated as proposed, it is likely that
Talen's CFR would move downward by one notch. However, the Ba1
rating for the term loan is being assigned in conjunction with
financing for the transaction and it is not under review. In
assigning the facility rating, Moody's has assumed that the
transaction will be consummated as proposed. As a result, upon
closing of the transaction, there would not likely be any change in
the term loan rating. If the transaction does not close as
anticipated, the rating on the term loan facility would be
withdrawn.
What Could Change the Rating - Up
In view of the pending transaction, and Talen's shift away from
balance sheet strengthening efforts, it is not likely the corporate
family rating would move upward over the next 12-18 months.
However, upward movement in the CFR would likely put upward
pressure on the rating of the term loan.
What Could Change the Rating - Down
If the transaction is consummated as proposed, it is likely the
corporate family rating would move downward by one notch. The term
loan rating assumes the transaction is consummated as proposed,
however a multi notch downward move in the corporate family rating
would likely put pressure on the term loan rating. To the extent
there is additional downward pressure on commodity prices, an
increase in leverage, or longer term, if financial markets remain
exceedingly challenging for the sector, there could be downward
pressure on the corporate family ratings.
Talen is an independent power producer with about 16.5 GW of
generating capacity. Talen Energy Corp., headquartered in
Allentown, PA, is a publicly-listed holding company that owns 100%
of Talen and conducts all its business activities through Talen.
The principal methodology used in this rating was Unregulated
Utilities and Unregulated Power Companies published in October
2014.
TEXAS ROAD: Seeks to Employ Cara Realtors
-----------------------------------------
Texas Road Enterprises, Inc., seeks authorization from the U.S.
Bankruptcy Court for the District of New Jersey to employ Cara
Realtors as realtor.
The Debtor requires Cara Realtors to assist the sale of the
Debtor's business property at 162 Greenwood Road, Marlboro, New
Jersey, and 230 Texas Road, Marlboro, New Jersey.
Cara Realtors will be paid with a 4% real estate commission.
Gina Corbisiero, member of Cara Realtors, 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.
Cara Realtors can be reached at:
Gina Corbisiero
CARA REALTORS
606 Arnold Avenue
Point Pleasant Beach, NJ 08742
Tel.: 732.892.9900
Fax: 732.892.0790
Email: gcorbisiero@cararealtors.com
About Texas Road Enterprises, Inc.
Texas Road Enterprises, Inc. filed a Chapter 11 petition (Bankr. D.
N.J. Case No.: 16-25995) on August 19, 2016, and is represented by
Robert C. Nisenson, Esq. in East Brunswick, New Jersey.
At the time of filing, the Debtor had $1.50 million in total assets
and $992,000 in total liabilities.
The petition was signed by Michael Giordano, authorized
representative.
The Debtor lists Township of Marlboro Tax Collector as its largest
unsecured creditor holding a claim of $25,000.
A full-text copy of the petition is available for free at
http://bankrupt.com/misc/njb16-25995.pdf
TMT PROCUREMENT: Unsecured Creditors Want to Use Current Shares
---------------------------------------------------------------
The Official Committee of Unsecured Creditors of TMT Procurement
Corp. and affiliates, asks of the U.S. Bankruptcy Court for the
Southern District of Texas to authorize the use of estate property,
namely the current shares, to satisfy in full the as-yet unasserted
claims that F3 Capital may have, if any, under the Order Regarding
Shares.
A hearing on the Motion is set for Nov. 1, 2016 at 1:30 p.m. (CT).
Pursuant to (i) the Order Regarding Shares, as affirmed by the
District Court's Order Affirming Escrow of Vantage Shares, and (ii)
the District Court's Addendum to Interim Order Authorizing
Post-Petition Secured Financing and Providing Related Relief, in
each case as reaffirmed by the Order Following Remand, F3 Capital
deposited into the court register a total of 30,007,142 shares
("Original Shares") of Vantage Drilling Co.
Pursuant to the Order Regarding Shares, the Order Affirming Escrow,
the Final DIP Order, the Order Enforcing Final DIP Order, and the
Order Granting Emergency Motion to Enforce Stock Transfer, the
Debtors caused Raymond James & Associates, Inc., as broker, to sell
11,282,771 of the Original Shares ("Sold Shares"), the proceeds of
which were applied to repayment of the DIP obligations under the
Final DIP Order.
Certain parts of the orders referenced in the preceding two
paragraphs were adopted on the basis set forth in the Order
Following Remand. In consideration of the Debtors' sale of the Sold
Shares, F3 Capital became entitled to claims pursuant to section
364(b) of the Bankruptcy Code under the Order Regarding Shares,
which provides in relevant part as follows:
F3 Capital, the owner of the share certificates, will
have claims arising under Section 364(b):
(i) The claims will be on a debtor by debtor basis.
Each debtor will be liable to F3 Capital only for the proceeds used
to satisfy that the debtor's obligations under the order.
(ii) No debtor will be liable to F3 Capital on account
of any decline in the value of the shares.
(iii) F3 Capital's Section 364(b) claim will be
subordinate to all other claims under Section 503(b).
Pursuant to the Order Granting Debtors' Emergency Motion for
Authority to Acquire Vantage Shares, the Debtors acquired
11,282,771 Vantage shares. As a result, there are now 30,007,142
Vantage shares ("Current Shares") held pending further order of the
Court. 15,000,000 of the Current Shares are held in electronic form
in custodia legis by Raymond James and 15,007,142 of the Current
Shares are held in certificated form in custodia legis in the Court
registry.
Pursuant to the Order Approving Debtors' Motion to Approve
Settlement with the Joint Official Liquidators of Vantage Drilling
Company and Related Releases and Injunction Pursuant to Bankruptcy
Rule 9019, the Current Shares are now free and clear of the DIP
facility and the contingent claims of Vantage. The Current Shares
remain subject to potential adequate protection claims, if any, of
the Debtors' lenders and the certificated shares in the Court
register still carry a restrictive legend.
The amount of F3 Capital's section 364(b) claims has not been
liquidated. Pursuant to the Final DIP Order and the Final Order
Authorizing Use of Cash Collateral and Granting Adequate
Protection, as supplemented from time to time, each of the
individual vessel Debtors that received intercompany loans under
the Final DIP Order have repaid such loans in full out of vessel
revenues received from time to time. As a result, such the Debtors
have fully satisfied their obligations under the Order Regarding
Shares. By operation of the Order Regarding Shares, this means that
F3 Capital's "debtor by debtor" section 364(b) claims are valued at
$0.
Notwithstanding the foregoing, the Motion assumes that F3 Capital
has valid section 364(b) claims against one or more of the Debtors
in an amount greater than $0. Should the Motion be denied and
should F3 Capital seek payment of any such amount, the Committee
will object at the time.
On Sept. 16, 2016, the Debtors filed a motion to satisfy F3
Capital's priority claims under the Order Regarding Shares on
substantially similar grounds to those asserted in the Motion. On
Sept. 19, 2016, the Debtors withdrew their objection because of a
limitation on the ability of the Debtors' counsel to prosecute
disputes with F3 Capital, Mr. Su, or insiders or affiliates of the
Debtors. Any such dispute was assigned to the Committee. As a
result of that assignment, the Committee is authorized to file the
Motion.
The Committee proposes to have the Debtors deliver all 30,007,142
Vantage shares to F3 Capital. It seeks to confirm that such
delivery will result in the satisfaction in full of any section
364(b) claims that F3 Capital may have. In essence, F3 Capital will
be restored to the status quo ante and will have no further claims
under the Order Regarding Shares.
Counsel for the Official Committee of Unsecured Creditors:
James S. Carr, Esq.
Kristin S. Elliott, Esq.
Jennifer D. Raviele, Esq.
Scott L. Fleischer, Esq.
KELLEY DRYE & WARREN LLP
101 Park Avenue
New York, NY 10178
Telephone: (212) 808-7800
Facsimile: (212) 808-7897
E-mail: jcarr@kelleydrye.com
kelliott@kelleydrye.com
jraviele@kelleydrye.com
sfleischer@kelleydrye.com
About TMT Group
Known in the industry as TMT Group, TMT USA Shipmanagement LLC and
its affiliates own 17 vessels. Vessels range in size from 27,000
dead weight tons (dwt) to 320,000 dwt.
TMT USA and 22 affiliates, including C. Ladybug Corporation,
sought
Chapter 11 protection (Bankr. S.D. Tex. Lead Case No. 13-33740) in
Houston, Texas, on June 20, 2013 after lenders seized seven
vessels.
TMT filed a lawsuit in U.S. bankruptcy court aimed at forcing
creditors to release the vessels so they can return to generating
income.
TMT has tapped attorneys from Bracewell & Giuliani LLP as
bankruptcy counsel and AlixPartners as financial advisors.
On a consolidated basis, the Debtors have $1.52 billion in assets
and $1.46 billion in liabilities.
TPP ACQUISITION: Can Get DIP Financing, Use Cash Collateral
-----------------------------------------------------------
Judge Harlin DeWayne Hale of the U.S. Bankruptcy Court for the
Northern District of Texas authorized TPP Acquisition, Inc., doing
business as The Picture People, to obtain postpetition financing
and use cash collateral on a final basis.
The approved DIP Budget covers a period of six weeks, beginning
with the week ending Oct. 1, 2016, and ending with the week ending
Nov. 5, 2016. The Budget provides for total disbursements in the
amount of $11,629,000 for the six-week period.
The Debtor previously sought authorization from the Court to obtain
post-petition financing from Monroe Capital Management Advisors
LLC, as administrative agent, and the DIP Lenders, and use cash
collateral in which the Prepetition Agent Monroe Capital Management
Advisors LLC and the Prepetition Lenders Monroe Capital Partners
Fund LP and Monroe Capital Corporation, have an interest.
The Debtor is indebted to the Prepetition Lenders in the aggregate
amount of not less than $41,271,838, plus interest accrued and
accruing at the default rate, costs, expenses, fees and other
charges and obligations. The Debtor granted the Prepetition Agent
and the Prepetition Lenders continuing security interests and liens
in all of the Debtor's personal property.
Judge Hale acknowledged that the ability of the Debtor to finance
its operations, to preserve and maintain the value of the Debtor's
assets, and to maximize a return for all creditors requires the
availability of working capital from the DIP Facility, the absence
of which would immediately and irreparably harm the Debtor, its
estate and its stakeholders.
The DIP Agent, for the benefit of the DIP Lenders, was granted DIP
Liens constituting priming, first priority, continuing, valid,
binding, enforceable, non-avoidable, and automatically perfected
post-petition security interests and Liens senior and superior in
priority to all other secured and unsecured creditors of the
Debtor’s estate.
The Prepetition Agent and the Prepetition Lenders were granted
valid, perfected, and enforceable additional and replacement
security interests and Liens in the DIP Collateral, which will be
junior only to the Carve Out, the DIP Liens securing the DIP
Obligations, and Permitted Prior Liens.
Judge Hale held that on the last business day of each month, the
Prepetition Agent will receive, for the benefit of the Prepetition
Lenders, payment of any accrued and unpaid interest at the default
rate set forth in their Prepetition Credit Agreement. Judge Hale
further held that the Prepetition Agent and the Prepetition Lenders
will be reimbursed, on a current basis, for all reasonable and
documented out-of-pocket costs and expenses of the financial
advisors and outside attorneys engaged by such parties, solely to
the extent permitted under the Prepetition Credit Agreement.
All DIP Obligations will be due and payable on the date that is the
earliest to occur of:
(a) Dec. 31, 2016;
(b) the closing of a sale of all or substantially all of the
assets of the Debtor pursuant to the provisions of Section 363 of
the Bankruptcy Code; or
(c) the effective date of any chapter 11 plan of
reorganization/liquidation for the Debtor.
A full-text copy of the Order, dated Oct. 7, 2016, is available at
http://bankrupt.com/misc/TPPAcquisition2016_1633437hdh11_230.pdf
About TPP Acquisition
TPP Acquisition, Inc., doing business as The Picture People, filed
a Chapter 11 petition (Bankr. N.D. Tex. Case No. 16-33437-hdh-11)
on Sept. 2, 2016. The Debtor is represented by Robert D.
Albergotti, Esq., Ian T. Peck, Esq., and Jarom J. Yates, Esq., at
Haynes and Boone, LLP.
The petition was signed by Stuart Noyes, chief restructuring
officer. The case is assigned to Judge Harlin DeWayne Hale. At
the time of filing, the Debtor estimated assets at $10 million to
$50 million and liabilities at $50 million to $100 million.
The Debtor's Restructuring Advisor is Winter Harbor LLC; the
Debtor's Investment Banker is SSG Advisors, LLC; and its Claims &
Noticing Agent is Kurtzman Carson Consultants LLC.
U.S. Trustee William T. Neary on Sept. 13, 2016, appointed nine
creditors to serve on the official committee of unsecured creditors
of TPP Acquisition, Inc. The committee members are: (1) W. B.
Mason Company, Inc.; (2) Identity Management Consultants, LLC; (3)
AAA Imaging Solutions; (4) Noritsu America Corporation; (5) Urban
Retail Properties, LLC; (6) GGP Limited Partnership; (7) MFA
Contemporary Atelier, Inc. dba Gemline Frame Company; (8) DFM Print
Pak; and (9) Simon Property Group, Inc.
TRACK GROUP: Mark Attarian Resigns as Chief Financial Officer
-------------------------------------------------------------
Track Group, Inc., announced that on Sept. 30, 2016, Mark Attarian
informed the Company of his intention to resign from his position
as chief financial officer effective Nov. 15, 2016, during which
time Mr. Attarian will assist in the transition of his function to
his successor.
"We appreciate Mark's leadership and his contributions to the
successful transition of our finance team in the short time he was
with us," said Track Group Chairman & CEO, Guy Dubois. "We have
taken pro-active measures to expedite a replacement that will
continue to build on our momentum."
The Company does not expect Mr. Attarian's resignation to have an
impact on the Company's business.
Mr. Attarian joined the Company as chief administrative officer on
July 11, 2016, and was appointed chief financial officer on
Sept. 12, 2016.
About Track Group
Track Group (formerly SecureAlert) -- http://www.trackgrp.com/--
is a global provider of customizable tracking solutions that
leverage real-time tracking data, best-practice monitoring, and
analytics capabilities to create complete, end-to-end solutions.
Track Group reported a net loss attributable to common shareholders
of $5.66 million on $20.8 million of total revenues for the fiscal
year ended Sept. 30, 2015, compared with a net loss attributable to
common shareholders of $8.76 million on $12.26 million of total
revenues for the fiscal year ended Sept. 30, 2014.
As of June 30, 2016, Track Group had $51.6 million in total assets,
$41.5 million in total liabilities and $10.2 million in total
equity.
TRANSOCEAN PHOENIX: S&P Assigns 'BB+' Rating on $600MM Sr. Notes
----------------------------------------------------------------
S&P Global Ratings said that it assigned its 'BB+' issue-level and
'1' recovery ratings to Transocean Phoenix 2 Ltd.'s planned
$600 million senior secured notes due 2024. The notes will be
guaranteed by parent companies Transocean Ltd. and Transocean Inc.
and by a wholly-owned indirect subsidiary of the company. The
company expects to use proceeds from the transaction to finance a
portion of the cost of construction of the drillship Deepwater
Thalassa.
The '1' recovery rating reflects S&P's expectation of meaningful
(90% to 100%) recovery to creditors in the event of a payment
default. The new notes will be secured by the Deepwater Thalassa,
which is under a 10-year contract with a subsidiary of Royal Dutch
Shell PLC at a favorable dayrate relative to current market
conditions. The contract also includes termination fees.
The 'BB-' long-term corporate credit rating on Transocean Inc.,
with a negative outlook, and 'BB-' issue-level and '3' recovery
ratings on its existing senior unsecured debt are unchanged.
The ratings on Transocean reflect S&P's assessment of the company's
satisfactory business risk profile, aggressive financial risk
profile, and strong liquidity. S&P's ratings incorporate the
company's position as the largest global offshore drilling company
and our view of the fleet's significant deepwater and midwater
component as being less competitive during an industry downturn.
The company's fleet is also somewhat older than several of its
industry peers. S&P notes that Transocean is investing in new
high-specification rigs, which ultimately, will improve its
competiveness, and the company has moved aggressively to retire
less marketable, lower-specification equipment. The negative
outlook reflects S&P's expectation that Transocean's credit
measures will weaken as contracts roll off and weak demand results
in difficulty replacing them.
RECOVERY ANALYSIS
Key analytical factors for recovery:
-- S&P has completed a review of the recovery analysis for
Transocean Phoenix 2 Limited's proposed senior secured notes
due 2024. S&P is assigning a '1' recovery rating and 'BB+'
issue-level rating to the notes.
-- The notes will be secured by an interest in a rig and the
notes are guaranteed on a senior unsecured joint and several
basis by parent companies Transocean Ltd., Transocean Inc.,
and a wholly-owned indirect subsidiary of the company. In
addition, the notes are subject to mandatory redemption
requirements of $60 million per annum beginning 2017. A
debt service reserve account will hold six month of
principal and interest payments.
-- S&P also rates Transocean Ltd.'s guaranteed senior unsecured
notes and unguaranteed senior unsecured notes. While the
facility and several of the note issues are ranked
differently, our valuation of Transocean Ltd. on a discrete
asset value basis indicates that recovery is capped in each
case. Numerically, S&P's recovery expectations on the
unsecured debt for Transocean exceeded 70%, but S&P caps the
recovery ratings on unsecured debt for companies rated in
the 'BB' category at '3', indicating the potential for
meaningful (50% to 70%) recovery, to reflect the heightened
risk of additional priority or pari passu debt being added
along the path to default. S&P has valued the collateral
securing the proposed note issue on a discrete asset basis.
S&P's valuation reflects its estimate of the value of the
rig at default assuming:
-- 4% depreciation per year for five years of the net book
value (default 2021).
-- 49% realization value at default.
-- 5% administration expenses assessed in reorganization.
Simulated default and valuation assumptions
-- Simulated year of default: 2021
Simplified waterfall for the proposed secured notes:
-- Net collateral value (after 5% administrative costs):
$342 million
-- Valuation split in % (obligors/nonobligors): 100/0
-- Priority claims: $342 million
-- Total value available to unsecured claims: $0
-- Senior secured debt/pari passu unsecured claims:
$342 million/$0
-- Recovery expectations: 90% to 100%
Notes: All debt amounts include six months of prepetition interest.
Collateral value equals asset pledge from obligors after priority
claims plus equity pledge from nonobligors after nonobligor debt.
RATINGS LIST
Transocean Inc.
Corporate credit rating BB-/Negative/--
New Rating
Transocean Phoenix 2 Ltd.
$600 mil sr secd nts due 2024 BB+
Recovery rating 1
VERTELLUS SPECIALTIES: Wants Plan Filing Period Moved to Dec. 27
----------------------------------------------------------------
Vertellus Specialties Inc., and its debtor-affiliates request the
U.S. Bankruptcy Court for the District of Delaware for an extension
of their exclusivity periods to file a chapter 11 plan in these
chapter 11 cases through Dec. 27, 2016, and to solicit acceptances
of the plan, through Feb. 25, 2017.
The Debtors relate that since the filing of these chapter 11 cases,
the Debtors have engaged in multiple track negotiations with
various of the Debtors' primary stakeholders in order to pave the
way to a successful sale of substantially all of their assets,
provide potential recoveries to creditors, and ultimately to permit
an orderly wind-down post-Sale.
As reported by the Troubled Company Reporter, the Bankruptcy Court
has approved the anticipated sale of substantially all of Vertellus
Specialties' assets to the Company's existing term loan lenders as
outlined in the agreement first announced on May 31, 2016. The
Court's decision on Sept. 8 follows the successful resolution of
all remaining objections raised by the Company's creditors,
environmental regulators and other business partners to allow for a
consensual asset sale. The transaction was expected to be
completed by the end of September.
In their request for extension of Exclusivity, the Debtors said
they have reached negotiated settlements relating to sale issues
with, among others:
(a) The Committee; the settlement provided for the Committee
to take all necessary and reasonable steps to support the
preparation, filing and approval of a consensual plan of
liquidation consistent with the terms of the Committee Settlement;
(b) The Environmental Protection Agency and various other
state and federal agencies; the settlement provides for, among
other things, the establishment of an Environmental Response Trust,
and the assignment of certain insurance claims and/or proceeds and
providing the benefit of certain financial assurance to the
Environmental Response Trust on the effective date of a plan of
liquidation; and
(c) Non-Debtor affiliate Vertellus Performance Chemicals
LLC; the Debtors anticipate that in the near future, the Debtors,
VPC, the Debtors' private equity sponsor, Wind Point Partners, and
the Purchaser will reach a settlement regarding various issues
relating to, among other things, the assumption and assignment to
Purchaser of the Shared Services and Resources Agreement between
Debtor Vertellus Specialties Inc. and non-Debtor VPC.
The Debtors anticipate filing a plan of liquidation and
accompanying disclosure statement shortly following the
consummation of the Sale, which expected to close on or about
October 31, 2016, and the additional extension requested by the
Motion will allow the Debtors to close the Sale and fully focus on
the strategies available to maximize the value of their estates and
be better positioned to propose a confirmable plan supported by the
Debtors’ key constituents.
Moreover, the Debtor submit that the Court has entered an order
establishing, among other things, a general claims bar date of Oct.
21, 2016 and a governmental claims bar date of Nov. 30, 2016, which
is critical for the Debtors and their advisors, in order to
determine whether the Debtors can formulate and propose a
confirmable plan of liquidation, since they still have to review,
analyze and reconcile the proofs of claim (including administrative
and priority claims) that are filed in these cases,
A hearing will be held on Nov. 16, 2016 at 11:00 a.m. to consider
approval of the Debtor's request, and any objections to the
Debtors' request must be filed by Oct. 12, 2016.
About Vertellus Specialties
Vertellus Specialties Inc. is a global specialty chemicals company
focused on the manufacture of ingredients used in pharmaceuticals,
personal care, nutrition, agriculture, and a host of other market
areas affected by trends favoring "green" technologies and
chemistries.
Headquartered in Indianapolis, Indiana, Vertellus Specialties Inc.
and several affiliates filed separate Chapter 11 bankruptcy
petitions (Bankr. D. Del. Case Nos. 16-11289 to 16-11299) on May
31, 2016. Judge Christopher S. Sontchi presides over the case.
Stuart M. Brown, Esq., Kaitlin M. Edelman, Esq., Richard A.
Chesley, Esq., Daniel M. Simon, Esq., and David E. Avraham, Esq.,
at DLA Piper LLP (US) serve as the Debtors' bankruptcy counsel.
Jefferies LLC is the Debtors' investment banker. Andrew Hinkelman
at FTI Consulting, Inc., is the Debtors' chief restructuring
officer. Kurtzman Carson Consultants is the Debtors' claims and
noticing agent.
The Debtors estimated their assets at between $100 million and $500
million and debts at between $500 million and $1 billion.
The petitions were signed by Anne Frye, vice president, secretary
and general counsel.
The Official Committee of Unsecured Creditors of Vertellus
Specialties Inc., et al., has tapped Hahn & Hessen LLP as lead
counsel; Morris James LLP as co-counsel; and Zolfo Cooper, LLC as
its financial advisor.
VFH PARENT: S&P Assigns 'B' ICR & Rates New $540MM Term Loan 'B'
----------------------------------------------------------------
S&P Global Ratings said it assigned its 'B' issuer credit rating on
VFH Parent LLC. The outlook is stable. At the same time, S&P
assigned its 'B' rating on the firm's new $540 million senior
secured term loan B.
"The ratings on VFH reflect the firm's focused franchise in
electronic market making, strong track record of consistent daily
profitability, and diversification in traded products and markets,
which is more than offset by its negative tangible equity, reliance
on short-term secured funding, and elevated operational risk," said
S&P Global Ratings credit analyst Robert Hoban.
VFH is an interim holding company affiliate of Virtu Financial
Inc., whose subsidiaries conduct electronic, high-frequency trading
using computer-driven trading strategies and execution to make
markets in the U.S. and international equities, fixed income,
currencies, futures, options, and commodities on more than 225
unique venues in over 36 countries globally. As a market maker, it
aims to rapidly buy and sell securities to capture the usually
narrow spread between the market's "bid" and "ask" price.
S&P's view of VFH's business position balances a concentration in
the highly competitive and potentially volatile securities
market-making, with the firm's geographic diversification and very
strong track record of performance. S&P believes the firm's
financial management and governance are still evolving as a
relatively new public company.
S&P views VFH's capitalization as the main rating weakness given
its negative tangible equity, substantial operational risk, and not
immaterial credit and market risk.
The stable outlook reflects S&P's expectation that operating
performance will remain solid, with stable earnings and no increase
in risk or material operational risk event losses.
S&P could raise its ratings over the next 12 months if the firm
strengthens its liquidity sources or builds tangible equity.
Conversely, S&P could lower the ratings if the firm faces a
material operational risk event or loss, or depletes its liquidity.
VIRGINIA LAMBROU: Employs George Geeslin as Bankruptcy Counsel
--------------------------------------------------------------
Virginia Lambrou, Inc., seeks authorization from the U.S.
Bankruptcy Court for the Northern District of Georgia to employ
George M. Geeslin as bankruptcy counsel.
The Debtor requires George Geeslin to:
(a) advise the Debtor with respect to its rights, powers,
duties, and obligations as Debtor-in-Possession in the
administration of the case, the operation of its business, and the
management of its property;
(b) prepare pleadings, applications, and conduct examinations
incidental to the administration;
(c) advise and represent the Debtor in connection with all
applications, motions, or complaints for reclamation, adequate
protection, sequestration, relief from stays, appointment of
trustee or examiner, and all other similar matters;
(d) develop the relationship of the status of
Debtor-in-Possession to the claims of the creditors in its
proceedings;
(e) advise and assist the Debtor-in-Possession in the
formulation and presentation of a Plan of Reorganization pursuant
to Chapter 11 of the Bankruptcy Code and concerning any and all
related matters; and,
(f) perform any and all other necessary and incidental legal
services.
George Geeslin will be paid at an hourly rate of $350.00.
George Geeslin has been employed by a retainer in the amount of
$9,000.00 and has agreed to accept it as a compensation for the
services and reimbursement of costs such as compensation and
reimbursement as may be awarded by the Bankruptcy Court. In
addition, the Debtor has been paid $3,000.00 ($1,717.00 for Chapter
11 filing fee and $500.00 for corporation reinstatement with the
Georgia Secretary of State, and $783.00 for pre-petition attorney
fees). The source of these funds is the Debtor funds.
George M. Geeslin, attorney-at-law of the firm, assured the Court
that the firm is a "disinterested person" as the term is defined in
Section 101(14) of the Bankruptcy Code and does not represent any
interest adverse to the Debtors and their estates.
George Geeslin can be reached at:
George M. Geeslin, Esq.
GEORGE M. GEESLIN
Two Midtown Plaza, Suite 1350
1349 West Peachtree Street
Atlanta, GA 30309
Tel.: (404) 841-3464
Fax: (866) 253-2313
Email: george@gmgeeslinlaw.com
Virginia Lambrou, Inc. d/b/a Landmark Diner (Virginia Ave.), filed
a Chapter 11 petition (Bankr. N.D. Ga. Case No. 16-66638) on
September 21, 2016, and is represented by: George M. Geeslin, Esq.
WAGLE LLC: Disclosures Conditionally OK'd; Hearing on Nov. 8
------------------------------------------------------------
The Hon. Carlota M. Bohm of the U.S. Bankruptcy Court for the
Western District of Pennsylvania has conditionally approved Wagle
LLC's disclosure statement dated Sept. 26, 2016, describing the
Debtor's plan of reorganization dated Sept. 26, 2016.
A hearing on the approval of the Disclosure Statement and
confirmation of the Plan will be held on Nov. 8, 2016, at 1:30 p.m.
Nov. 8 is also the last day for filing a complaint objecting to
discharge, if applicable.
Objections to the Disclosure Statement and the confirmation of the
Plan must be filed by Oct. 30, 2016, which is also fixed as the
last day for serving on the attorney for Debtor ballots which are
written acceptances or rejections of the Plan.
As reported by the Troubled Company Reporter on Oct. 6, 2016, the
Debtor filed with the Court a small business Chapter 11 plan and
the accompanying Disclosure Statement under which holders of
general unsecured non-tax claims will recover 1% of their total
allowed claim amount.
About Wagle LLC
Wagle LLC, a locksmith, sought protection under Chapter 11 of the
Bankruptcy Code in the Western District of Pennsylvania
(Pittsburgh) (Case No. 16-21169) on March 30, 2016. The petition
was signed by Patricia D. Wagle, member.
The Debtor is represented by Francis E. Corbett, Esq. The case is
assigned to Judge Carlota M. Bohm.
The Debtor estimated both assets and liabilities in the range of $1
million to $10 million.
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 Wagle LLC.
WESTMORELAND COAL: Amends Existing Credit Facility PrivateBank
--------------------------------------------------------------
Westmoreland Coal Company executed an amendment to its existing
revolving credit facility with The PrivateBank and Trust Company
and Bank of the West, to clarify the terms "Canadian Fixed Charges"
and "US Fixed Charges" to allocate scheduled cash interest payments
and to remove the allocation schedule of cash interest payments
under the term "Interest Expense".
A full-text copy of the Seventh Amendment to Second Amended and
Restated Loan and Security Agreement dated Sept. 30, 2016, is
available for free at https://is.gd/mftpcK
About Westmoreland Coal
Colorado Springs, Colo.-based Westmoreland Coal Company (NYSE
AMEX: WLB) -- http://www.westmoreland.com/-- is the oldest
independent coal company in the United States. The Company's coal
operations include coal mining in the Powder River Basin in
Montana and lignite mining operations in Montana, North Dakota and
Texas. Its power operations include ownership of the two-unit
ROVA coal-fired power plant in North Carolina.
Westmoreland reported a net loss applicable to common shareholders
of $203.31 million on $1.41 billion of revenues for the year ended
Dec. 31, 2015, compared to a net loss applicable to common
shareholders of $173.11 million on $1.11 billion of revenues for
the year ended Dec. 31, 2014.
As of June 30, 2016, Westmoreland Coal had $1.74 billion in total
assets, $2.31 billion in total liabilities and a $573.11 million
total deficit.
* * *
As reported by the TCR on Nov. 20, 2014, Standard & Poor's Rating
Services raised its corporate credit rating on Westmoreland Coal
Co. one-notch to 'B' from 'B-'. "The stable outlook is supported
by Westmoreland's committed sales position over the next year,
which should result in stable cash flows," said Standard & Poor's
credit analyst Chiza Vitta.
Moody's upgraded the corporate family rating (CFR) of Westmoreland
Coal Company to 'B3' from 'Caa1', and assigned 'Caa1' rating to
the company's proposed new $300 million First Lien Term Loan, the
TCR reported on Nov. 20, 2014. The upgrade of the CFR reflects the
company's successful integration of the Canadian mines acquired in
April 2014, and Moody's expectation that the company's Debt/ EBITDA
will track at around 5x in 2015 and 2016 and that the company will
be break-even to modestly free cash flow positive over the same
time period.
WIND ENTERTAINMENT: Unsecureds to Recoup 1-2% Under Ch. 11 Plan
---------------------------------------------------------------
Wind Entertainment Corp. filed with the U.S. Bankruptcy Court for
the District of Nevada a second amended disclosure statement for
the Debtor's plan of reorganization.
Under the Plan, Class 6 will consist of the unsecured claims of FX
Luxury Las Vegas I, LLC, in the approximate amount of $455,850.95,
plus the security deposit in the amount of $100,000, which was
previously applied against the rent by FX Luxury. FX Luxury's
unsecured claims are separately classified as they will be
resolved, if at all, in accordance with the Debtor's assumption or
rejection of the lease through its Plan, and paid over 60 months or
as may be agreed upon by the parties. If FX Luxury agrees to allow
the Debtor to repay its claims over 60 months, the Debtor's rent
will increase by $9,264.18 per month. If it is determined that FX
Luxury's unsecured claims are paid pursuant to Section 365 of the
Bankruptcy Code then FX Luxury's claims will be reclassified at
confirmation as an administrative claim of the Estate, and Class 6
will be vacated.
The Debtor is currently negotiating with FX Luxury regarding the
assumption of the lease and an extension of the lease, as the lease
is currently set to expire on Oct. 31, 2018, the Debtor is seeking
a five-year extension of the lease. In connection with any
extension, however, FX Luxury may require a recapture provision,
which will allow FX Luxury to recapture the leased premises upon 90
days' notice to the Debtor. In the event FX Luxury exercises any
right to recapture the leased premises, the Debtor's business
operations may cease and general unsecured claims may receive no
payments in the case.
Class 7 will consist of General Unsecured Claims, which are not
secured by property of the Estate and are not entitled to priority
under Section 507(a) of the Bankruptcy Code, but are entitled in
this case to separate classification in accordance with Section
1122(b) of the Bankruptcy Code. General Unsecured Claims will be
paid approximately 1-2% of their claims from the Debtor's excess
income over a period of 60 months, after payment of all secured,
administrative, and priority claims, including all claims in
Classes 1 through 6. If the Debtor's excess income is only
sufficient to pay the claims of Classes 1 through 6, Class 7
General Unsecured Claims may receive no payments in the case. If
FX Luxury, the Debtor's landlord, exercises any right to recapture
the leased premises, the Debtor's business operations may cease and
general unsecured claims may receive no payments in the case.
Upon the Effective Date, the provisions of the Plan will constitute
a good faith compromise and settlement of all claims and equity
interests and controversies resolved pursuant to the Plan. Nothing
in the Plan is meant to waive or impair any of the Debtor's and the
Estate's causes of action or avoidance actions, or the proceeds
thereof, as any may be transferred and litigated or settled by the
Reorganized Debtor.
The Second Amended Disclosure Statement is available at:
http://bankrupt.com/misc/nvb16-10391-98.pdf
The Debtor proposes that the plan confirmation hearing be held on
Nov. 17, 2016, at 9:30 a.m.
About Wind Entertainment Corp.
Wind Entertainment Corp. was formed in December 2012, and operates
an entertainment business which provides a platform for performing
arts, magic and illusion shows, and nightlife entertainment on the
Las Vegas Strip, just north of the MGM Grand Hotel and Casino, in
Las Vegas, Nevada. Thomas J. Riccardo, Jr., is the Debtor's
president and owner of the Debtor.
The Debtor's central asset is its lease agreement with FX Luxury
Las Vegas I, LLC, for the lease of the premises located at 3765
South Las Vegas Boulevard, Las Vegas, Nevada 891019. The Premises
consist of the Wind Theater (also known as the TW Theater Night
Club and Events Center) where the Debtor operates its entertainment
business and provides several performing arts, magic, illusion and
other shows on the Las Vegas Strip.
The Debtor sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. D. Nev. Case No. 16-10391) on Jan. 28, 2016. The
Debtor is represented by Samuel A. Schwartz, Esq., at Schwartz
Flansburg PLLC.
[^] Large Companies with Insolvent Balance Sheet
------------------------------------------------
Total
Share- Total
Total Holders' Working
Assets Equity Capital
Company Ticker ($MM) ($MM) ($MM)
------- ------ ------ -------- -------
ABSOLUTE SOFTWRE ALSWF US 114.7 (43.7) (34.6)
ABSOLUTE SOFTWRE ABT2EUR EU 114.7 (43.7) (34.6)
ABSOLUTE SOFTWRE OU1 GR 114.7 (43.7) (34.6)
ABSOLUTE SOFTWRE ABT CN 114.7 (43.7) (34.6)
ADV MICRO DEVICE AMD US 3,316.0 (413.0) 925.0
ADV MICRO DEVICE AMDUSD SW 3,316.0 (413.0) 925.0
ADV MICRO DEVICE AMD SW 3,316.0 (413.0) 925.0
ADV MICRO DEVICE AMDCHF EU 3,316.0 (413.0) 925.0
ADV MICRO DEVICE AMD QT 3,316.0 (413.0) 925.0
ADV MICRO DEVICE AMD* MM 3,316.0 (413.0) 925.0
ADV MICRO DEVICE AMD TH 3,316.0 (413.0) 925.0
ADV MICRO DEVICE AMD TE 3,316.0 (413.0) 925.0
ADV MICRO DEVICE AMD GR 3,316.0 (413.0) 925.0
ADVANCED EMISSIO ADES US 36.6 (10.5) (11.2)
ADVANCED EMISSIO OXQ1 GR 36.6 (10.5) (11.2)
ADVANCEPIERRE FO APFHEUR EU 1,149.4 (335.7) 180.5
ADVANCEPIERRE FO APFH US 1,149.4 (335.7) 180.5
ADVENT SOFTWARE ADVS US 424.8 (50.1) (110.8)
AERIE PHARMACEUT 0P0 GR 120.1 (17.4) 94.1
AERIE PHARMACEUT AERIEUR EU 120.1 (17.4) 94.1
AERIE PHARMACEUT AERI US 120.1 (17.4) 94.1
AEROJET ROCKETDY GCY GR 2,000.1 (108.0) 100.6
AEROJET ROCKETDY AJRDEUR EU 2,000.1 (108.0) 100.6
AEROJET ROCKETDY AJRD US 2,000.1 (108.0) 100.6
AIR CANADA AC CN 14,539.0 (673.0) (496.0)
AIR CANADA ACDVF US 14,539.0 (673.0) (496.0)
AIR CANADA ADH2 GR 14,539.0 (673.0) (496.0)
AIR CANADA ACEUR EU 14,539.0 (673.0) (496.0)
AIR CANADA ADH2 TH 14,539.0 (673.0) (496.0)
AK STEEL HLDG AKS* MM 3,918.3 (300.6) 665.0
AK STEEL HLDG AKS US 3,918.3 (300.6) 665.0
AK STEEL HLDG AK2 TH 3,918.3 (300.6) 665.0
AK STEEL HLDG AK2 GR 3,918.3 (300.6) 665.0
AMER RESTAUR-LP ICTPU US 33.5 (4.0) (6.2)
AMYLIN PHARMACEU AMLN US 1,998.7 (42.4) 263.0
APPTIO INC-CL A 6AO GR 107.5 (17.7) (8.0)
APPTIO INC-CL A APTI US 107.5 (17.7) (8.0)
ARCH COAL INC ACIIQ US 4,685.2 (1,627.0) 713.1
ARCH COAL INC ARCH US 4,685.2 (1,627.0) 713.1
ARCH COAL INC ACIIQ* MM 4,685.2 (1,627.0) 713.1
ARCH COAL INC ACC QT 4,685.2 (1,627.0) 713.1
ARIAD PHARM APS TH 624.4 (37.9) 206.5
ARIAD PHARM ARIAEUR EU 624.4 (37.9) 206.5
ARIAD PHARM APS GR 624.4 (37.9) 206.5
ARIAD PHARM APS QT 624.4 (37.9) 206.5
ARIAD PHARM ARIA US 624.4 (37.9) 206.5
ARIAD PHARM ARIA SW 624.4 (37.9) 206.5
ARIAD PHARM ARIACHF EU 624.4 (37.9) 206.5
ARRAY BIOPHARMA AR2 QT 168.9 (37.9) 102.9
ARRAY BIOPHARMA AR2 GR 168.9 (37.9) 102.9
ARRAY BIOPHARMA ARRYEUR EU 168.9 (37.9) 102.9
ARRAY BIOPHARMA ARRY US 168.9 (37.9) 102.9
ARRAY BIOPHARMA AR2 TH 168.9 (37.9) 102.9
ASPEN TECHNOLOGY AZPNEUR EU 419.7 (75.0) (71.3)
ASPEN TECHNOLOGY AST GR 419.7 (75.0) (71.3)
ASPEN TECHNOLOGY AZPN US 419.7 (75.0) (71.3)
ASPEN TECHNOLOGY AST TH 419.7 (75.0) (71.3)
AUTOZONE INC AZ5 QT 8,464.1 (1,863.3) (422.1)
AUTOZONE INC AZOEUR EU 8,464.1 (1,863.3) (422.1)
AUTOZONE INC AZ5 GR 8,464.1 (1,863.3) (422.1)
AUTOZONE INC AZ5 TH 8,464.1 (1,863.3) (422.1)
AUTOZONE INC AZO US 8,464.1 (1,863.3) (422.1)
AVID TECHNOLOGY AVD GR 273.7 (289.0) (88.5)
AVID TECHNOLOGY AVID US 273.7 (289.0) (88.5)
AVINTIV SPECIALT POLGA US 1,991.4 (3.9) 322.1
AVON - BDR AVON34 BZ 3,638.1 (397.3) 702.1
AVON PRODUCT-CED AVP AR 3,638.1 (397.3) 702.1
AVON PRODUCTS AVP US 3,638.1 (397.3) 702.1
AVON PRODUCTS AVP* MM 3,638.1 (397.3) 702.1
AVON PRODUCTS AVP GR 3,638.1 (397.3) 702.1
AVON PRODUCTS AVP CI 3,638.1 (397.3) 702.1
AVON PRODUCTS AVP TH 3,638.1 (397.3) 702.1
BARRACUDA NETWOR CUDAEUR EU 430.7 (19.3) (28.8)
BARRACUDA NETWOR CUDA US 430.7 (19.3) (28.8)
BARRACUDA NETWOR 7BM GR 430.7 (19.3) (28.8)
BARRACUDA NETWOR 7BM QT 430.7 (19.3) (28.8)
BENEFITFOCUS INC BNFT US 164.8 (31.8) (0.2)
BENEFITFOCUS INC BTF GR 164.8 (31.8) (0.2)
BLUE BIRD CORP 1291067D US 310.3 (99.1) (7.6)
BLUE BIRD CORP BLBD US 310.3 (99.1) (7.6)
BOMBARDIER INC-B BBDBN MM 23,871.0 (3,918.0) 1,670.0
BOMBARDIER-B OLD BBDYB BB 23,871.0 (3,918.0) 1,670.0
BOMBARDIER-B W/I BBD/W CN 23,871.0 (3,918.0) 1,670.0
BRINKER INTL EAT US 1,472.7 (213.1) (255.7)
BRINKER INTL EAT2EUR EU 1,472.7 (213.1) (255.7)
BRINKER INTL BKJ GR 1,472.7 (213.1) (255.7)
BRP INC/CA-SUB V B15A GR 2,204.8 (73.9) 63.7
BRP INC/CA-SUB V BRPIF US 2,204.8 (73.9) 63.7
BRP INC/CA-SUB V DOO CN 2,204.8 (73.9) 63.7
BUFFALO COAL COR BUC SJ 48.1 (17.9) 0.3
BURLINGTON STORE BUI GR 2,566.3 (103.7) 93.1
BURLINGTON STORE BURL US 2,566.3 (103.7) 93.1
BURLINGTON STORE BURL* MM 2,566.3 (103.7) 93.1
CAESARS ENTERTAI CZR US 12,117.0 (96.0) (2,233.0)
CAESARS ENTERTAI C08 GR 12,117.0 (96.0) (2,233.0)
CALIFORNIA RESOU 1CL TH 6,476.0 (1,045.0) (206.0)
CALIFORNIA RESOU 1CLB GR 6,476.0 (1,045.0) (206.0)
CALIFORNIA RESOU CRC US 6,476.0 (1,045.0) (206.0)
CALIFORNIA RESOU 1CLB QT 6,476.0 (1,045.0) (206.0)
CALIFORNIA RESOU CRCEUR EU 6,476.0 (1,045.0) (206.0)
CAMBIUM LEARNING ABCD US 133.8 (69.9) (55.1)
CAMPING WORLD-A CWH US 1,487.5 (278.9) 150.0
CARBONITE INC CARB US 133.4 (2.1) (39.9)
CARBONITE INC 4CB GR 133.4 (2.1) (39.9)
CARRIZO OIL&GAS CO1 GR 1,457.6 (110.4) (103.8)
CARRIZO OIL&GAS CO1 TH 1,457.6 (110.4) (103.8)
CARRIZO OIL&GAS CRZOEUR EU 1,457.6 (110.4) (103.8)
CARRIZO OIL&GAS CRZO US 1,457.6 (110.4) (103.8)
CASELLA WASTE CWST US 631.6 (22.2) (6.0)
CASELLA WASTE WA3 GR 631.6 (22.2) (6.0)
CEB INC FC9 GR 1,509.2 (71.7) (153.6)
CEB INC CEB US 1,509.2 (71.7) (153.6)
CEDAR FAIR LP FUN US 2,072.4 (28.4) (104.7)
CEDAR FAIR LP 7CF GR 2,072.4 (28.4) (104.7)
CENTENNIAL COMM CYCL US 1,480.9 (925.9) (52.1)
CHOICE HOTELS CZH GR 843.4 (373.8) 118.7
CHOICE HOTELS CHH US 843.4 (373.8) 118.7
CINCINNATI BELL CBB US 1,423.2 (217.0) (48.0)
CINCINNATI BELL CIB1 GR 1,423.2 (217.0) (48.0)
CLEAR CHANNEL-A CCO US 5,698.1 (966.4) 682.6
CLEAR CHANNEL-A C7C GR 5,698.1 (966.4) 682.6
CLEARSIDE BIOMED CLM GR 4.5 (4.3) 1.2
CLEARSIDE BIOMED CLSD US 4.5 (4.3) 1.2
CLIFFS NATURAL R CVA QT 1,851.0 (1,678.9) 403.1
CLIFFS NATURAL R CLF US 1,851.0 (1,678.9) 403.1
CLIFFS NATURAL R CVA TH 1,851.0 (1,678.9) 403.1
CLIFFS NATURAL R CLF* MM 1,851.0 (1,678.9) 403.1
CLIFFS NATURAL R CLF2EUR EU 1,851.0 (1,678.9) 403.1
CLIFFS NATURAL R CVA GR 1,851.0 (1,678.9) 403.1
COGENT COMMUNICA CCOI US 626.4 (29.4) 142.2
COGENT COMMUNICA OGM1 GR 626.4 (29.4) 142.2
COHERUS BIOSCIEN 8C5 GR 251.1 (61.9) 128.6
COHERUS BIOSCIEN CHRS US 251.1 (61.9) 128.6
COHERUS BIOSCIEN 8C5 QT 251.1 (61.9) 128.6
COHERUS BIOSCIEN 8C5 TH 251.1 (61.9) 128.6
COHERUS BIOSCIEN CHRSEUR EU 251.1 (61.9) 128.6
COMMUNICATION 8XC GR 2,851.7 (1,247.6) -
COMMUNICATION CSAL US 2,851.7 (1,247.6) -
CPI CARD GROUP I CPB GR 277.1 (91.0) 56.9
CPI CARD GROUP I PNT CN 277.1 (91.0) 56.9
CPI CARD GROUP I PMTS US 277.1 (91.0) 56.9
CVR NITROGEN LP RNF US 241.4 (166.3) 12.0
CYAN INC CYNI US 112.1 (18.4) 56.9
CYAN INC YCN GR 112.1 (18.4) 56.9
DELEK LOGISTICS DKL US 381.8 (9.3) 15.3
DELEK LOGISTICS D6L GR 381.8 (9.3) 15.3
DENNY'S CORP DE8 GR 293.2 (52.7) (44.5)
DENNY'S CORP DENN US 293.2 (52.7) (44.5)
DIRECTV 1448062D US 25,321.0 (3,463.0) 1,360.0
DIRECTV DTV CI 25,321.0 (3,463.0) 1,360.0
DIRECTV DTVEUR EU 25,321.0 (3,463.0) 1,360.0
DOMINO'S PIZZA EZV TH 652.3 (1,914.8) 93.7
DOMINO'S PIZZA DPZ US 652.3 (1,914.8) 93.7
DOMINO'S PIZZA EZV GR 652.3 (1,914.8) 93.7
DPL INC DPL US 2,931.4 (173.0) (496.5)
DUN & BRADSTREET DNB US 2,162.9 (1,076.9) (85.0)
DUN & BRADSTREET DB5 GR 2,162.9 (1,076.9) (85.0)
DUN & BRADSTREET DNB1EUR EU 2,162.9 (1,076.9) (85.0)
DUNKIN' BRANDS G DNKN US 3,130.4 (203.7) 147.1
DUNKIN' BRANDS G 2DB TH 3,130.4 (203.7) 147.1
DUNKIN' BRANDS G DNKNEUR EU 3,130.4 (203.7) 147.1
DUNKIN' BRANDS G 2DB GR 3,130.4 (203.7) 147.1
DURATA THERAPEUT DRTX US 82.1 (16.1) 11.7
DURATA THERAPEUT DTA GR 82.1 (16.1) 11.7
DURATA THERAPEUT DRTXEUR EU 82.1 (16.1) 11.7
EASTMAN KODAK CO KODK US 2,042.0 (39.0) 859.0
EASTMAN KODAK CO KODN GR 2,042.0 (39.0) 859.0
EDGEN GROUP INC EDG US 883.8 (0.8) 409.2
ENERGIZER HOLDIN ENR US 1,596.8 (2.8) 655.7
ENERGIZER HOLDIN ENR-WEUR EU 1,596.8 (2.8) 655.7
ENERGIZER HOLDIN EGG GR 1,596.8 (2.8) 655.7
EPL OIL & GAS IN EPL US 463.6 (1,080.5) (1,301.7)
EPL OIL & GAS IN EPA1 GR 463.6 (1,080.5) (1,301.7)
ERIN ENERGY CORP ERN SJ 349.0 (159.2) (257.2)
EVERBRIDGE INC EVBGEUR EU 48.9 (20.9) (28.6)
EVERBRIDGE INC 2E7 GR 48.9 (20.9) (28.6)
EVERBRIDGE INC EVBG US 48.9 (20.9) (28.6)
EXELIXIS INC EX9 GR 477.1 (186.1) 160.6
EXELIXIS INC EXEL US 477.1 (186.1) 160.6
EXELIXIS INC EXELEUR EU 477.1 (186.1) 160.6
EXELIXIS INC EX9 TH 477.1 (186.1) 160.6
EXELIXIS INC EX9 QT 477.1 (186.1) 160.6
FAIRMOUNT SANTRO FM1 GR 1,109.1 (159.6) 147.3
FAIRMOUNT SANTRO FMSAEUR EU 1,109.1 (159.6) 147.3
FAIRMOUNT SANTRO FMSA US 1,109.1 (159.6) 147.3
FAIRPOINT COMMUN FONN GR 1,279.3 (23.7) 9.7
FAIRPOINT COMMUN FRP US 1,279.3 (23.7) 9.7
FERRELLGAS-LP FGP US 1,683.3 (651.8) (77.1)
FERRELLGAS-LP FEG GR 1,683.3 (651.8) (77.1)
FIFTH STREET ASS 7FS TH 166.3 (11.1) -
FIFTH STREET ASS FSAM US 166.3 (11.1) -
FILO MINING CORP FIL SS 0.0 (0.0) -
FORESIGHT ENERGY FHR GR 1,746.6 (45.9) (1,325.6)
FORESIGHT ENERGY FELP US 1,746.6 (45.9) (1,325.6)
FREESCALE SEMICO 1FS QT 3,159.0 (3,079.0) 1,264.0
FREESCALE SEMICO 1FS GR 3,159.0 (3,079.0) 1,264.0
FREESCALE SEMICO FSLEUR EU 3,159.0 (3,079.0) 1,264.0
FREESCALE SEMICO 1FS TH 3,159.0 (3,079.0) 1,264.0
FREESCALE SEMICO FSL US 3,159.0 (3,079.0) 1,264.0
GAMCO INVESTO-A GBL US 113.9 (223.5) -
GARDA WRLD -CL A GW CN 1,842.9 (396.1) 105.2
GARTNER INC IT US 2,304.5 (52.8) (153.6)
GARTNER INC GGRA GR 2,304.5 (52.8) (153.6)
GCP APPLIED TECH 43G GR 1,034.5 (149.7) 254.9
GCP APPLIED TECH GCP US 1,034.5 (149.7) 254.9
GENTIVA HEALTH GHT GR 1,225.2 (285.2) 130.0
GENTIVA HEALTH GTIV US 1,225.2 (285.2) 130.0
GLG PARTNERS INC GLG US 400.0 (285.6) 156.9
GLG PARTNERS-UTS GLG/U US 400.0 (285.6) 156.9
GRAHAM PACKAGING GRM US 2,947.5 (520.8) 298.5
GUIDANCE SOFTWAR ZTT GR 71.8 (1.7) (22.1)
GUIDANCE SOFTWAR GUID US 71.8 (1.7) (22.1)
GYMBOREE CORP/TH GYMB US 1,162.6 (309.2) 28.7
H&R BLOCK INC HRB TH 2,163.5 (199.8) (0.8)
H&R BLOCK INC HRB QT 2,163.5 (199.8) (0.8)
H&R BLOCK INC HRBEUR EU 2,163.5 (199.8) (0.8)
H&R BLOCK INC HRB GR 2,163.5 (199.8) (0.8)
H&R BLOCK INC HRB US 2,163.5 (199.8) (0.8)
HALCON RESOURCES RAQK GR 2,453.8 (672.6) (2,780.0)
HALCON RESOURCES HKEUR EU 2,453.8 (672.6) (2,780.0)
HALCON RESOURCES HK US 2,453.8 (672.6) (2,780.0)
HCA HOLDINGS INC HCA US 33,205.0 (6,498.0) 3,699.0
HCA HOLDINGS INC HCAEUR EU 33,205.0 (6,498.0) 3,699.0
HCA HOLDINGS INC 2BH GR 33,205.0 (6,498.0) 3,699.0
HCA HOLDINGS INC 2BH TH 33,205.0 (6,498.0) 3,699.0
HECKMANN CORP-U HEK/U US 421.9 (75.1) (51.4)
HEWLETT-PACKA-WI HPQ-W US 27,224.0 (3,926.0) (712.0)
HORSEHEAD HOLDIN ZINCQ* MM 308.7 (279.4) (48.4)
HOVNANIAN-A-WI HOV-W US 2,388.8 (151.9) 1,377.8
HP COMPANY-BDR HPQB34 BZ 27,224.0 (3,926.0) (712.0)
HP INC HWP QT 27,224.0 (3,926.0) (712.0)
HP INC 7HP GR 27,224.0 (3,926.0) (712.0)
HP INC HPQ CI 27,224.0 (3,926.0) (712.0)
HP INC 7HP TH 27,224.0 (3,926.0) (712.0)
HP INC HPQ TE 27,224.0 (3,926.0) (712.0)
HP INC HPQ US 27,224.0 (3,926.0) (712.0)
HP INC HPQ* MM 27,224.0 (3,926.0) (712.0)
HP INC HPQUSD SW 27,224.0 (3,926.0) (712.0)
HP INC HPQ SW 27,224.0 (3,926.0) (712.0)
HP INC HPQCHF EU 27,224.0 (3,926.0) (712.0)
HUGHES TELEMATIC HUTCU US 110.2 (101.6) (113.8)
IDEXX LABS IX1 GR 1,489.2 (8.5) (1.7)
IDEXX LABS IX1 TH 1,489.2 (8.5) (1.7)
IDEXX LABS IX1 QT 1,489.2 (8.5) (1.7)
IDEXX LABS IDXX US 1,489.2 (8.5) (1.7)
INFOR ACQUISIT-A IAC/A CN 233.2 (2.7) 1.8
INFOR ACQUISITIO IAC-U CN 233.2 (2.7) 1.8
INFOR US INC LWSN US 6,048.5 (796.8) (226.4)
INNOVIVA INC HVE GR 378.1 (363.1) 175.8
INNOVIVA INC INVA US 378.1 (363.1) 175.8
INTERNATIONAL WI ITWG US 325.1 (11.5) 95.4
INTERUPS INC ITUP US 0.0 (0.3) (0.3)
INVENTIV HEALTH VTIV US 2,167.0 (791.3) 142.1
IPCS INC IPCS US 559.2 (33.0) 72.1
ISRAMCO INC IRM GR 145.1 (0.9) 14.0
ISRAMCO INC ISRLEUR EU 145.1 (0.9) 14.0
ISRAMCO INC ISRL US 145.1 (0.9) 14.0
ISTA PHARMACEUTI ISTA US 124.7 (64.8) 2.2
J CREW GROUP INC JCG US 1,455.8 (786.1) 86.9
JACK IN THE BOX JACK1EUR EU 1,291.5 (167.5) (85.1)
JACK IN THE BOX JBX GR 1,291.5 (167.5) (85.1)
JACK IN THE BOX JACK US 1,291.5 (167.5) (85.1)
JUST ENERGY GROU JE US 1,229.1 (191.7) (118.1)
JUST ENERGY GROU 1JE GR 1,229.1 (191.7) (118.1)
JUST ENERGY GROU JE CN 1,229.1 (191.7) (118.1)
KADMON HOLDINGS KDMN US 45.9 (256.6) (33.4)
L BRANDS INC LB* MM 7,541.0 (1,129.0) 1,141.0
L BRANDS INC LTD TH 7,541.0 (1,129.0) 1,141.0
L BRANDS INC LBEUR EU 7,541.0 (1,129.0) 1,141.0
L BRANDS INC LTD GR 7,541.0 (1,129.0) 1,141.0
L BRANDS INC LB US 7,541.0 (1,129.0) 1,141.0
LANTHEUS HOLDING 0L8 GR 259.3 (166.4) 78.9
LANTHEUS HOLDING LNTH US 259.3 (166.4) 78.9
LEAP WIRELESS LEAP US 4,662.9 (125.1) 346.9
LEAP WIRELESS LWI GR 4,662.9 (125.1) 346.9
LEAP WIRELESS LWI TH 4,662.9 (125.1) 346.9
LEE ENTERPRISES LEE US 715.2 (122.1) (24.8)
LEE ENTERPRISES LEE1EUR EU 715.2 (122.1) (24.8)
LEE ENTERPRISES LE7 GR 715.2 (122.1) (24.8)
LORILLARD INC LO US 4,154.0 (2,134.0) 1,135.0
LORILLARD INC LLV TH 4,154.0 (2,134.0) 1,135.0
LORILLARD INC LLV GR 4,154.0 (2,134.0) 1,135.0
MADISON-A/NEW-WI MSGN-W US 806.5 (1,120.0) 168.7
MANITOWOC FOOD 6M6 GR 1,807.0 (111.1) 19.1
MANITOWOC FOOD MFS1EUR EU 1,807.0 (111.1) 19.1
MANITOWOC FOOD MFS US 1,807.0 (111.1) 19.1
MANNKIND CORP MNKD IT 139.4 (366.6) (198.9)
MARRIOTT INTL-A MAQ GR 6,650.0 (3,462.0) (1,285.0)
MARRIOTT INTL-A MAR US 6,650.0 (3,462.0) (1,285.0)
MARRIOTT INTL-A MAQ TH 6,650.0 (3,462.0) (1,285.0)
MARRIOTT INTL-A MAQ QT 6,650.0 (3,462.0) (1,285.0)
MCBC HOLDINGS IN MCFT US 82.5 (8.4) (26.3)
MCBC HOLDINGS IN 1SG GR 82.5 (8.4) (26.3)
MDC COMM-W/I MDZ/W CN 1,616.2 (457.3) (268.2)
MDC PARTNERS-A MDCAEUR EU 1,616.2 (457.3) (268.2)
MDC PARTNERS-A MDCA US 1,616.2 (457.3) (268.2)
MDC PARTNERS-A MDZ/A CN 1,616.2 (457.3) (268.2)
MDC PARTNERS-EXC MDZ/N CN 1,616.2 (457.3) (268.2)
MEAD JOHNSON MJN US 4,028.6 (519.4) 1,459.4
MEAD JOHNSON 0MJA TH 4,028.6 (519.4) 1,459.4
MEAD JOHNSON MJNEUR EU 4,028.6 (519.4) 1,459.4
MEAD JOHNSON 0MJA GR 4,028.6 (519.4) 1,459.4
MEDLEY MANAGE-A MDLY US 107.6 (30.3) 38.7
MERITOR INC MTOR US 2,084.0 (596.0) 155.0
MERITOR INC AID1 GR 2,084.0 (596.0) 155.0
MERITOR INC MTOREUR EU 2,084.0 (596.0) 155.0
MERRIMACK PHARMA MP6 GR 150.0 (201.6) 28.1
MERRIMACK PHARMA MACK US 150.0 (201.6) 28.1
MERRIMACK PHARMA MP6 QT 150.0 (201.6) 28.1
MERRIMACK PHARMA MACKEUR EU 150.0 (201.6) 28.1
MICHAELS COS INC MIK US 2,001.0 (1,707.8) 531.0
MICHAELS COS INC MIM GR 2,001.0 (1,707.8) 531.0
MIDSTATES PETROL MPO1EUR EU 729.3 (1,495.1) 12.9
MONEYGRAM INTERN MGI US 4,290.8 (221.2) (12.5)
MOODY'S CORP MCOEUR EU 5,044.9 (369.5) 1,883.7
MOODY'S CORP DUT GR 5,044.9 (369.5) 1,883.7
MOODY'S CORP DUT TH 5,044.9 (369.5) 1,883.7
MOODY'S CORP MCO US 5,044.9 (369.5) 1,883.7
MOTOROLA SOLUTIO MSI US 8,467.0 (678.0) 1,502.0
MOTOROLA SOLUTIO MTLA QT 8,467.0 (678.0) 1,502.0
MOTOROLA SOLUTIO MTLA TH 8,467.0 (678.0) 1,502.0
MOTOROLA SOLUTIO MTLA GR 8,467.0 (678.0) 1,502.0
MOTOROLA SOLUTIO MOT TE 8,467.0 (678.0) 1,502.0
MPG OFFICE TRUST 1052394D US 1,280.0 (437.3) -
MSG NETWORKS- A 1M4 TH 806.5 (1,120.0) 168.7
MSG NETWORKS- A MSGNEUR EU 806.5 (1,120.0) 168.7
MSG NETWORKS- A 1M4 GR 806.5 (1,120.0) 168.7
MSG NETWORKS- A MSGN US 806.5 (1,120.0) 168.7
NATHANS FAMOUS NFA GR 77.7 (70.5) 51.9
NATHANS FAMOUS NATH US 77.7 (70.5) 51.9
NATIONAL CINEMED XWM GR 1,045.7 (166.4) 91.5
NATIONAL CINEMED NCMI US 1,045.7 (166.4) 91.5
NAVIDEA BIOPHARM NAVB IT 8.7 (63.9) (55.5)
NAVISTAR INTL IHR GR 5,719.0 (5,134.0) 239.0
NAVISTAR INTL IHR TH 5,719.0 (5,134.0) 239.0
NAVISTAR INTL IHR QT 5,719.0 (5,134.0) 239.0
NAVISTAR INTL NAV US 5,719.0 (5,134.0) 239.0
NEFF CORP-CL A NFO GR 681.2 (163.1) 2.3
NEFF CORP-CL A NEFF US 681.2 (163.1) 2.3
NEKTAR THERAPEUT NKTR US 463.1 (39.3) 239.0
NEKTAR THERAPEUT ITH GR 463.1 (39.3) 239.0
NEW ENG RLTY-LP NEN US 193.6 (31.2) -
NTELOS HOLDINGS NTLS US 611.1 (39.9) 104.9
NUTANIX INC - A 0NU GR 399.1 (65.9) 117.1
NUTANIX INC - A 0NU TH 399.1 (65.9) 117.1
NUTANIX INC - A NTNX US 399.1 (65.9) 117.1
OCH-ZIFF CAPIT-A OZM US 1,375.1 (356.2) -
OCH-ZIFF CAPIT-A 35OA GR 1,375.1 (356.2) -
OMEROS CORP OMEREUR EU 46.1 (49.0) 18.0
OMEROS CORP 3O8 TH 46.1 (49.0) 18.0
OMEROS CORP OMER US 46.1 (49.0) 18.0
OMEROS CORP 3O8 GR 46.1 (49.0) 18.0
OMTHERA PHARMACE OMTH US 18.3 (8.5) (12.0)
ONCOMED PHARMACE O0M GR 181.9 (43.5) 121.7
ONCOMED PHARMACE OMED US 181.9 (43.5) 121.7
PALM INC PALM US 1,007.2 (6.2) 141.7
PAPA JOHN'S INTL PP1 GR 487.2 (9.3) 18.4
PAPA JOHN'S INTL PZZA US 487.2 (9.3) 18.4
PBF LOGISTICS LP 11P GR 458.6 (128.0) 65.8
PBF LOGISTICS LP PBFX US 458.6 (128.0) 65.8
PENN NATL GAMING PN1 GR 5,142.8 (606.9) (197.8)
PENN NATL GAMING PENN US 5,142.8 (606.9) (197.8)
PHILIP MORRIS IN PMI1 IX 34,802.0 (10,799.0) 3,374.0
PHILIP MORRIS IN PM1CHF EU 34,802.0 (10,799.0) 3,374.0
PHILIP MORRIS IN PM US 34,802.0 (10,799.0) 3,374.0
PHILIP MORRIS IN PMI SW 34,802.0 (10,799.0) 3,374.0
PHILIP MORRIS IN PM1 TE 34,802.0 (10,799.0) 3,374.0
PHILIP MORRIS IN PM1EUR EU 34,802.0 (10,799.0) 3,374.0
PHILIP MORRIS IN 4I1 TH 34,802.0 (10,799.0) 3,374.0
PHILIP MORRIS IN 4I1 GR 34,802.0 (10,799.0) 3,374.0
PHILIP MORRIS IN 4I1 QT 34,802.0 (10,799.0) 3,374.0
PHILIP MORRIS IN PMI EB 34,802.0 (10,799.0) 3,374.0
PHILIP MORRIS IN PM FP 34,802.0 (10,799.0) 3,374.0
PINNACLE ENTERTA 65P GR 3,966.8 (332.9) (106.8)
PINNACLE ENTERTA PNK US 3,966.8 (332.9) (106.8)
PLAYBOY ENTERP-A PLA/A US 165.8 (54.4) (16.9)
PLAYBOY ENTERP-B PLA US 165.8 (54.4) (16.9)
PLY GEM HOLDINGS PGEM US 1,292.6 (57.6) 280.6
PLY GEM HOLDINGS PG6 GR 1,292.6 (57.6) 280.6
POLYMER GROUP-B POLGB US 1,991.4 (3.9) 322.1
PROTECTION ONE PONE US 562.9 (61.8) (7.6)
QUALITY DISTRIBU QLTY US 413.0 (22.9) 102.9
QUALITY DISTRIBU QDZ GR 413.0 (22.9) 102.9
QUINTILES IMS HO Q US 3,962.8 (228.7) 836.3
QUINTILES IMS HO QTS GR 3,962.8 (228.7) 836.3
REATA PHARMACE-A 2R3 GR 114.4 (212.1) 52.9
REATA PHARMACE-A RETA US 114.4 (212.1) 52.9
REGAL ENTERTAI-A RETA GR 2,572.9 (872.3) (86.1)
REGAL ENTERTAI-A RGC* MM 2,572.9 (872.3) (86.1)
REGAL ENTERTAI-A RGC US 2,572.9 (872.3) (86.1)
RENAISSANCE LEA RLRN US 57.0 (28.2) (31.4)
RENTECH NITROGEN 2RN GR 241.4 (166.3) 12.0
RENTPATH LLC PRM US 208.0 (91.7) 3.6
RESOLUTE ENERGY R21 GR 317.5 (321.8) 15.2
RESOLUTE ENERGY REN US 317.5 (321.8) 15.2
RESOLUTE ENERGY RENEUR EU 317.5 (321.8) 15.2
REVLON INC-A RVL1 GR 1,914.8 (561.7) 296.2
REVLON INC-A REV US 1,914.8 (561.7) 296.2
RLJ ACQUISITI-UT RLJAU US 127.7 (14.8) 18.1
ROUNDY'S INC RNDY US 1,095.7 (92.7) 59.7
ROUNDY'S INC 4R1 GR 1,095.7 (92.7) 59.7
RURAL/METRO CORP RURL US 303.7 (92.1) 72.4
RYERSON HOLDING RYI US 1,630.0 (112.1) 679.6
RYERSON HOLDING 7RY GR 1,630.0 (112.1) 679.6
RYERSON HOLDING 7RY TH 1,630.0 (112.1) 679.6
SALLY BEAUTY HOL SBH US 2,091.1 (282.9) 690.6
SALLY BEAUTY HOL S7V GR 2,091.1 (282.9) 690.6
SANCHEZ ENERGY C 13S GR 1,240.5 (703.2) 288.2
SANCHEZ ENERGY C SN* MM 1,240.5 (703.2) 288.2
SANCHEZ ENERGY C 13S TH 1,240.5 (703.2) 288.2
SANCHEZ ENERGY C SN US 1,240.5 (703.2) 288.2
SANDRIDGE ENERGY SD US 2,240.9 (2,272.9) 680.0
SBA COMM CORP-A SBJ GR 7,436.3 (1,607.6) (513.6)
SBA COMM CORP-A SBACEUR EU 7,436.3 (1,607.6) (513.6)
SBA COMM CORP-A SBAC US 7,436.3 (1,607.6) (513.6)
SBA COMM CORP-A SBJ TH 7,436.3 (1,607.6) (513.6)
SCIENTIFIC GAM-A SGMS US 7,465.1 (1,666.9) 491.7
SCIENTIFIC GAM-A TJW GR 7,465.1 (1,666.9) 491.7
SEARS HOLDINGS SHLD US 10,614.0 (2,693.0) 672.0
SEARS HOLDINGS SEE GR 10,614.0 (2,693.0) 672.0
SEARS HOLDINGS SEE TH 10,614.0 (2,693.0) 672.0
SEARS HOLDINGS SEE QT 10,614.0 (2,693.0) 672.0
SIGA TECH INC SIGA US 201.7 (304.1) (73.3)
SILVER SPRING NE SSNI US 449.4 (12.3) 15.2
SILVER SPRING NE 9SI TH 449.4 (12.3) 15.2
SILVER SPRING NE SSNIEUR EU 449.4 (12.3) 15.2
SILVER SPRING NE 9SI GR 449.4 (12.3) 15.2
SIRIUS XM CANADA XSR CN 304.7 (135.3) (170.2)
SIRIUS XM CANADA SIICF US 304.7 (135.3) (170.2)
SIRIUS XM HOLDIN RDO GR 8,139.8 (775.1) (1,605.5)
SIRIUS XM HOLDIN RDO TH 8,139.8 (775.1) (1,605.5)
SIRIUS XM HOLDIN SIRI US 8,139.8 (775.1) (1,605.5)
SONIC CORP SONCEUR EU 679.7 (58.5) 98.7
SONIC CORP SO4 GR 679.7 (58.5) 98.7
SONIC CORP SONC US 679.7 (58.5) 98.7
SUPERVALU INC SJ1 GR 4,373.0 (383.0) 203.0
SUPERVALU INC SVU* MM 4,373.0 (383.0) 203.0
SUPERVALU INC SVU US 4,373.0 (383.0) 203.0
SUPERVALU INC SJ1 TH 4,373.0 (383.0) 203.0
SUPERVALU INC SJ1 QT 4,373.0 (383.0) 203.0
TAILORED BRANDS WRMA GR 2,184.6 (88.7) 719.8
TAILORED BRANDS TLRD* MM 2,184.6 (88.7) 719.8
TAILORED BRANDS TLRD US 2,184.6 (88.7) 719.8
TAUBMAN CENTERS TU8 GR 3,786.8 (36.5) -
TAUBMAN CENTERS TCO US 3,786.8 (36.5) -
TRANSDIGM GROUP T7D GR 10,570.5 (808.2) 2,204.8
TRANSDIGM GROUP TDG US 10,570.5 (808.2) 2,204.8
TRANSDIGM GROUP TDG SW 10,570.5 (808.2) 2,204.8
TRANSDIGM GROUP TDGCHF EU 10,570.5 (808.2) 2,204.8
TRANSDIGM GROUP T7D QT 10,570.5 (808.2) 2,204.8
TRANSDIGM GROUP TDGEUR EU 10,570.5 (808.2) 2,204.8
ULTRA PETROLEUM UPLEUR EU 1,292.9 (2,996.0) 259.4
ULTRA PETROLEUM UPM GR 1,292.9 (2,996.0) 259.4
ULTRA PETROLEUM UPLMQ US 1,292.9 (2,996.0) 259.4
UNISYS CORP USY1 TH 2,241.6 (1,273.6) 310.3
UNISYS CORP USY1 GR 2,241.6 (1,273.6) 310.3
UNISYS CORP UISEUR EU 2,241.6 (1,273.6) 310.3
UNISYS CORP UIS1 SW 2,241.6 (1,273.6) 310.3
UNISYS CORP UISCHF EU 2,241.6 (1,273.6) 310.3
UNISYS CORP UIS US 2,241.6 (1,273.6) 310.3
VALVOLINE INC VVV US 1,634.0 (634.0) 78.0
VALVOLINE INC VVVEUR EU 1,634.0 (634.0) 78.0
VALVOLINE INC 0V4 GR 1,634.0 (634.0) 78.0
VECTOR GROUP LTD VGR GR 1,479.5 (175.4) 584.8
VECTOR GROUP LTD VGR QT 1,479.5 (175.4) 584.8
VECTOR GROUP LTD VGR US 1,479.5 (175.4) 584.8
VENOCO INC VQ US 295.3 (483.7) (509.8)
VERISIGN INC VRS TH 2,314.2 (1,127.3) 468.5
VERISIGN INC VRS GR 2,314.2 (1,127.3) 468.5
VERISIGN INC VRSN US 2,314.2 (1,127.3) 468.5
VERIZON TELEMATI HUTC US 110.2 (101.6) (113.8)
VERSO CORP - A VRS US 2,523.0 (1,302.0) 57.0
VERSUM MATER VSM US 906.5 (252.7) 271.1
VERSUM MATER 2V1 TH 906.5 (252.7) 271.1
VERSUM MATER 2V1 GR 906.5 (252.7) 271.1
VERSUM MATER VSMEUR EU 906.5 (252.7) 271.1
VIEWRAY INC VRAY US 47.9 (31.1) 2.8
VIRGIN MOBILE-A VM US 307.4 (244.2) (138.3)
WEIGHT WATCHERS WTW US 1,265.8 (1,266.4) (146.1)
WEIGHT WATCHERS WW6 GR 1,265.8 (1,266.4) (146.1)
WEIGHT WATCHERS WW6 TH 1,265.8 (1,266.4) (146.1)
WEIGHT WATCHERS WTWEUR EU 1,265.8 (1,266.4) (146.1)
WEST CORP WSTC US 3,546.6 (522.4) 269.5
WEST CORP WT2 GR 3,546.6 (522.4) 269.5
WESTMORELAND COA WLB US 1,743.2 (573.1) (41.5)
WINGSTOP INC EWG GR 116.8 (0.1) 6.7
WINGSTOP INC WING US 116.8 (0.1) 6.7
WINMARK CORP WINA US 42.8 (21.9) 13.6
WINMARK CORP GBZ GR 42.8 (21.9) 13.6
YANEX GROUP INC YNXG US 0.0 (0.1) (0.1)
YRC WORLDWIDE IN YEL1 GR 1,886.0 (359.8) 271.7
YRC WORLDWIDE IN YRCWEUR EU 1,886.0 (359.8) 271.7
YRC WORLDWIDE IN YRCW US 1,886.0 (359.8) 271.7
YRC WORLDWIDE IN YEL1 TH 1,886.0 (359.8) 271.7
YUM! BRANDS INC TGR QT 10,432.0 (1,830.0) 1,704.0
YUM! BRANDS INC TGR TH 10,432.0 (1,830.0) 1,704.0
YUM! BRANDS INC TGR GR 10,432.0 (1,830.0) 1,704.0
YUM! BRANDS INC YUMEUR EU 10,432.0 (1,830.0) 1,704.0
YUM! BRANDS INC YUM SW 10,432.0 (1,830.0) 1,704.0
YUM! BRANDS INC YUMCHF EU 10,432.0 (1,830.0) 1,704.0
YUM! BRANDS INC YUM US 10,432.0 (1,830.0) 1,704.0
YUM! BRANDS INC YUMUSD SW 10,432.0 (1,830.0) 1,704.0
ZIOPHARM ONCOLOG ZIOP US 128.0 (52.0) 110.7
ZIOPHARM ONCOLOG WEK GR 128.0 (52.0) 110.7
ZIOPHARM ONCOLOG ZIOPEUR EU 128.0 (52.0) 110.7
ZIOPHARM ONCOLOG WEK TH 128.0 (52.0) 110.7
*********
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.
TCR subscribers have free access to our on-line news archive.
Point your Web browser to http://TCRresources.bankrupt.com/and use
the e-mail address to which your TCR is delivered to login.
*********
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
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*** End of Transmission ***