/raid1/www/Hosts/bankrupt/TCR_Public/161012.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Wednesday, October 12, 2016, Vol. 20, No. 285
Headlines
3B ENGINEERING: Seeks to Hire Jeffrey Cogan as New Legal Counsel
4221 CLEARVALLEY: Disclosure Approved, Plan Confirmation on Nov. 10
ACB RECEIVABLES: Organizational Meeting Adjourned Sine Die
ACQUIRE HEALTHCARE: Taps David T. Cain as Legal Counsel
ADA A. GIRON: Fine-Tunes Disclosures Ahead of Oct. 18 Hearing
ALEMAYEHU MARU: Reorganization Plan Gives 100% to Unsec. Creditors
ALLIANCE ONE: Prices $275M 8.500% Senior Secured Notes Offering
AMERICAN EAGLE: Disclosure Approved, Plan Confirmation on Nov. 10
ANOTHER DOOR OPENS: Asks for Extension of Period to File Plan
APRICUS BIOSCIENCES: Anson Reports 7% Stake as of Sept. 30
ARCH COAL: Fitch Withdraws 'D' Long Term Issuer Default Rating
ARCTIC SENTINEL: Wants Jan. 31 Solicitation Period Extension
ASPEN GROUP: Alvin Fund Reports 7% Equity Stake as of Sept. 29
ASTROTURF LLC: Seeks Feb. 23 Plan Filing Period Extension
ATLANTIC CITY, NJ: Avoids Repaying New Jersey Loan But Loses Aid
ATLAS DISPOSAL: Hires Todd S. Marrazzo as Accountant
BAMC DEVELOPMENT: Plan Confirmation Hearing on Nov. 3
BANK OF COMMERCE: Seeks to Hire Nelson Mullins as Counsel
BASIC ENERGY: BlackRock Reports 3% Equity Stake as of Sept. 30
BC ACQUISITIONS: Gets Approval to Hire Willis & Wilkins as Counsel
BDC SHARED SERVICES: Have Until Nov. 16 to File Plans
BONANZA CREEK: BlackRock Reports 4% Equity Stake as of Sept. 30
BROOKLYN INTERIORS: Hires McBreen & Kopko as Restructuring Counsel
CALGI CONSTRUCTION: Unsecureds to Recoup 10% Under Plan
CALLSOCKET II: Case Summary & 20 Largest Unsecured Creditors
CALPINE CORP: Egan-Jones Lowers Commercial Paper Rating to C
CARIBBEAN COMMERCIAL: Chapter 15 Case Summary
CELESTE ADRIAN MD: Plan Confirmation Hearing Scheduled for Nov. 17
CLARK-CUTLER: GM Asks Judge to Toss Lawsuit
COIL WORKS: Files for Insolvency, Oct. 17 Creditor's Meeting Set
CONNECT TRANSPORT: Seeks to Hire Kurtzman as Claims Agent
CORE RESOURCE: Creditors' Committee Seeks Ch. 11 Trustee
COSHOCTON MEMORIAL: Seeks Jan. 26 Plan Exclusivity Extension
CYNTHIA JOY KWASIGROCH: Ch. 11 Plan Set for Nov. 15 Confirmation
DAVID KARMEL: Court Sets Disclosure Hearing for November 15
DDR CORP: Fitch Affirms 'BB' Preferred Stock Rating
DEER MEADOWS: Taps Stephen Boyke as Attorney
DENNIS RAY JOHNSON: DOJ Watchdog Seeks Ch. 11 Trustee Appointment
EDGARDO ACEVEDO BADILLO: Ch. 11 Plan Hearing Slated for Nov. 3
FELD LIMITED: Wants Plan Filing Period Extended to Jan. 20
FLOUR CITY BAGELS: Wants Dec. 31 Plan Exclusivity Extension
GARDEN OF EDEN: Taps Platzer, Swergold & Levine as Legal Counsel
GILBERTO P. REYES: To Present Plan for Confirmation on Dec. 7
GO YE VILLAGE: Disclosure Statement Hearing on Nov. 9
GOLFSMITH INTERNATIONAL: Worldwide Golf Eyes U.S. Assets
GREAT BASIN: Had 17.01M Common Shares Outstanding as of Oct. 7
GULF CHEMICAL: Has Until Jan. 10 to file Chapter 11 Plan
GULFMARK OFFSHORE: BlackRock Owns 2.7% of Class A Shares
HALSEY ST. MANAGEMENT: Employs Vogel Bach as Counsel
HERCULES OFFSHORE: Wants Plan Filing Period Extended to Jan. 3
HOMER CITY: S&P Lowers CCR to 'CC' on Forbearance Agreement
HUSKY IMS: S&P Affirms 'B' Rating on 1st Lien Debt
IDERA PHARMACEUTICALS: Prices Public Offering of 25M Common Shares
IMPLANT SCIENCES: Files for Ch. 11 With $117.5M Deal to Sell to L-3
INLAND ENVIRONMENTAL: Taps Fuqua & Associates as Legal Counsel
IRINA ZAGORSKAYA: Disclosures OK'd, Plan Confirmation on Dec. 19
ITT EDUCATIONAL: Bankruptcy Trustee Seeks to Fend Off SEC, CFPB
JAMES HALLIDAY LLC: Unsecureds to Get 100% Recovery Under Plan
JOHN YURKOVICH AUTO: Plan Hearing Nov. 17 Before Judge Oxholm
JOSE DOMINGUEZ: Hearing on Reorganization Plan on Dec. 7
JOSEPH A. OLADOKUN: DCHN to Seek Plan Confirmation on Nov. 9
K&J LANDSCAPE: Hires Mauro Savo as Bankruptcy Counsel
KIRK LLC: Taps Barbara M. Smith as Accountant
KLAMON LLC: Seeks Nov. 18 Exclusive Plan Filing Period Extension
LAKEVIEW MARINA: Seeks to Hire Robert Jones as Bookkeeper
LEAH M GANSLER: All Creditors Get 100% Payment Under Revised Plan
LIGHSTREAM RESOURCES: In CCAA Proceedings, FTI Named as Monitor
LIME ENERGY: Special Meeting of Stockholders Set for Nov. 10
MAGNETATION LLC: Wants Plan Filing Period Extended to Nov. 5
MAGNOLIA STATE SCHOOL: Oct. 27 Hearing on Plan & Disclosures Set
MAJESTIC AIR: Seeks to Employ Carlsen Law as Special Counsel
MARGHERITA ARVANITES: First Federal, et al., Not Secured Creditors
MARK JEFFERY KLAMRZYNSKI: Disclosure Hearing Set on Nov. 16
MCELRATH LEGAL: Taps Elder Law Management as Accountant
MCNEILL PROPERTIES: Unsecureds to Get $4,657 For 60 Months
MEGA AGROCENTRO: Seeks to Hire Jose Calderon as New Legal Counsel
NEW HOPE: Disclosures Okayed, Plan Confirmation Hearing on Nov. 10
NIGHTINGALE HOME: Has Until Nov. 7 to File Plan of Reorganization
NJOY INC: Seeks to Employ Ordinary Course Professionals
OLMOS EQUIPMENT: Court Orders Ch. 11 Examiner Appointment
PARKWAY PROPERTIES: Moody's Withdraws Ba1 Issuer Rating Over Merger
PAUL F. WALLACE: Files First Amended Disclosure Statement
PEABODY ENERGY: Obtains DIP Lender Approval to Amend Milestones
PETROQUEST ENERGY: Terminates EVP - Business Development
PHILADELPHIA SCHOOL DISTRICT: Fitch Affirms 'BB-' IDR
PHILADELPHIA SCHOOL DISTRICT: Moody's Rates GO Bonds 'Ba3'
R&G FOOD: Joseph Moulton to Serve as CEO After Ch. 11 Exit
RIVERSIDE MULCH: Plan Contemplates November Auction for Property
ROADHOUSE HOLDING: Files Solicitation Version of Plan Disclosures
SALADO SMILES: Selling East West Bank Collateral to Dr. Lufburrow
SANDRA NADEEN MONGER: Court Orders Ch. 11 Trustee Appointment
SAUCIER BROS: Seeks 60-Day Exclusive Filing Period Extension
SNEED SHIPBUILDING: Given Until Oct. 17 to File Chapter 11 Plan
SOTO REEFER: Seeks to Employ Moreno and Soltero as Counsel
STONERIDGE PARKWAY: Court Denies Ch. 11 Trustee Appointment Bid
SUNPOWER BY RENEWABLE: Hires Peel Brimley as Special Counsel
SYCAMORE INVESTMENT: Sought Two-Day Exclusivity Extension
TERRILL MANUFACTURING: Taps Spigner & Associates as Legal Counsel
TOM GJURAJ: Chapter 11 Plan Set for Nov. 30 Confirmation
TRANSOCEAN INC: Fitch Affirms 'B+' Long Term Issuer Default Rating
TREND COMPANIES: Seeks Dec. 29 Exclusive Plan Filing Extension
TRINITY RIVER: Has Until Dec. 1 to File Chapter 11 Plan
TROCOM CONSTRUCTION: Court Denies Fund's Bid to Allow Late Claim
TRUMP ENTERTAINMENT: Trump Taj Mahal Closes in Atlantic City
VIRTU FINANCIAL: Fitch Assigns 'BB-' LT Issuer Default Rating
WARNER MUSIC: Enters Into Lease Pact with Sri Ten
WEST LANE: Disclosures, Chapter 11 Plan Hearing on Nov. 14
WIZ-X INC: Hires Earnest Fiveash as Bankruptcy Attorney
WMG ACQUISITION: Moody's Assigns Ba3 Rating on $630MM Sec. Notes
WMG ACQUISITION: S&P Rates Proposed Sr. Notes Due 2024 'B'
ZOHAR CDO 2003: Tilton Pushes for Delay in Asset Sale
*********
3B ENGINEERING: Seeks to Hire Jeffrey Cogan as New Legal Counsel
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3B Engineering, LLC seeks approval from the U.S. Bankruptcy Court
for the District of Nevada to hire Jeffrey Cogan, Esq., as its new
legal counsel.
Mr. Cogan will substitute Charles Wright, Esq., at Piet & Wright.
Due to medical reasons, Mr. Wright could no longer serve as legal
counsel to the Debtor, according to court filings.
The Debtor proposes to pay Mr. Cogan an hourly fee of $400 for his
services.
Mr. Cogan does not represent any interests adverse to the Debtor
and its bankruptcy estate, and is "disinterested" as defined in
section 101(14) of the Bankruptcy Code.
Mr. Cogan's contact information is:
Jeffrey A. Cogan, Esq.
6900 Westcliff Drive, Suite 602
Las Vegas, NV 89145
Tel: (702) 474-4220
Fax: (702) 474-4228
Email: jeffrey@jeffreycogan.com
About 3B Engineering
3B Engineering, LLC sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. D. Nev. Case No. 15-15212) on September 10,
2015. The petition was signed by Raymond E. Brannen, president.
At the time of the filing, the Debtor estimated assets of less than
$50,000 and liabilities of $1 million to $10 million.
4221 CLEARVALLEY: Disclosure Approved, Plan Confirmation on Nov. 10
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Judge Victoria S. Kaufman of the U.S. Bankruptcy Court for the
Central District of California will consider approval of the First
Amended Chapter 11 Plan of Reorganization proposed by 4221
Clearvalley, LLC, and will continue the Chapter 11 Status
Conference at a hearing on November 10, 2016 at 1:00 p.m.
Judge Kaufman ordered that objections to confirmation of the Plan
must be filed and served no later than October 21, 2016. She
further ordered that ballots must be received by Debtor's counsel
no later than October 21, 2016.
Judge Kaufman directed the Debtor to file and serve a confirmation
memorandum stating why the Plan should be confirmed no later than
October 31, 2016.
About 4221 Clearvalley
4221 Clearvalley, LLC, sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. C. D. Calif. Case No. 15-12767) on August
19, 2015, and is represented by M. Jonathan Hayes, Esq., Matthew D.
Resnik, Esq., Roksana D. Moradi, Esq., at Simon Resnik Hayes LLP,
in Sherman Oaks, California. The petition was signed by Arezoo Y
Javaheri Merabi, managing member.
The case is assigned to Judge Martin R. Barash.
At the time of the filing, the Debtor estimated its assets and
debts at $1 million to $10 million.
ACB RECEIVABLES: Organizational Meeting Adjourned Sine Die
----------------------------------------------------------
The Oct. 13 meeting to discuss the formation of an unsecured
creditors committee in the bankruptcy case of ACB Receivables
Management, Inc. has been adjourned. No new date has been
scheduled at this time.
The meeting was originally set for 11:00 a.m., Oct. 13, 2016, in
Trenton, New Jersey.
About ACB Receivables Management
ACB Receivables Management, Inc., filed a chapter 11 petition
(Bankr. D.N.J. Case No. 16-27343) on Sept. 9, 2016. The petition
was signed by Oleg Shnayderman, president. The Debtor is
represented by David A. Ast, Esq., at David Alan Ast, P.C. The
case is assigned to Judge Christine M. Gravelle. 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 is a collection agency. The Debtor's clients consist
primarily of physicians and medical facilities.
ACQUIRE HEALTHCARE: Taps David T. Cain as Legal Counsel
-------------------------------------------------------
Acquire Healthcare, LLC seeks approval from the U.S. Bankruptcy
Court for the Western District of Texas to hire legal counsel in
connection with its Chapter 11 case.
The Debtor proposes to hire the Law Office of David T. Cain and pay
the firm an hourly rate of $300 for its services.
David Cain, Esq., disclosed in a court filing that he does not hold
or represent any interests adverse to the Debtor's bankruptcy
estate.
Mr. Cain's contact information is:
David T. Cain, Esq.
Law Office of David T. Cain
8610 N. New Braunfels Avenue, Suite 309
San Antonio, TX 78217-6358
Phone: (210) 308-0388
Fax: (210) 341-8432
Email: caindt@swbell.net
About Acquire Healthcare
Acquire Healthcare, LLC sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. W. D. Texas Case No. 16-52129) on September
21, 2016. The petition was signed by Mariles Miralles, president.
The case is assigned to Judge Craig A. Gargotta.
At the time of the filing, the Debtor estimated assets of less than
$500,000 and liabilities of $1 million to $10 million.
ADA A. GIRON: Fine-Tunes Disclosures Ahead of Oct. 18 Hearing
-------------------------------------------------------------
Ada A. Giron filed with the U.S. Bankruptcy Court for the Northern
District of Illinois, Eastern Division, a Third Amended Disclosure
Statement. Like the prior version, the Third Amended Disclosure
Statement says that the Debtor has a Plan that provides for the
orderly liquidation of the Debtor's assets to pay her creditors in
full on or shortly after the Effective Date.
The Debtor proposes to pay her creditors through a combination of:
(a) the sale of all Rental Real Estate, except for the 26th Street
Property; (b) restructuring of the 26th Street Property debt; (c)
the liquidation of the Investment Accounts; and (d) her continuing
social security payments and rental income.
The Debtor will pay 100% unsecured claims of Navient, American
Express Centurion Bank and Peoples Gas on or before June 30, 2017,
from the proceeds of the sale of the Michigan Properties, the
non-exempt Investment Accounts, or her personal unencumbered
assets or other unencumbered properties.
A full-text copy of the Third Amended Disclosure Statement is
available at
http://bankrupt.com/misc/ilnb15-07521_339_3rd_DS_A_Giron.pdf
Judge Donald R. Cassling on October 18, 2016, at 10:00 a.m., will
convene a hearing to consider approval of the disclosure statement
explaining Ada Giron's plan. If, at the conclusion of the hearing,
the Disclosure Statement is approved by the court, the Court will
immediately hold a hearing to consider confirmation of the Plan.
Ada A. Giron sought Chapter 11 protection (Bankr. N.D. Ill. Case
No. 15-07521) on March 3, 2015. The Debtor tapped Paul M. Bach,
Esq., and Penelope N. Bach, Esq., at Sulaiman Law Group, LTD., as
counsel.
ALEMAYEHU MARU: Reorganization Plan Gives 100% to Unsec. Creditors
------------------------------------------------------------------
Alemayehu G. Maru and Yanet M. Kebreab filed a reorganization plan
that says general unsecured creditors will all be paid the total
amount of their claims, $4,935, plus simple interest at the federal
funds rate on the Effective Date, from the date of the bankruptcy
filing to the Effective Date, in a single lump sum payment on the
Effective Date of the Plan. The general unsecured creditors (Class
C) are not impaired.
It is estimated that the amounts required for implementation of the
Plan upon the Effective Date and within 6 months thereof are as
follows:
Administrative expense claims: TBD
Priority tax claims: $0
Class A: $0
Class B-1: $822
Class B-2: $730
Class B-3: $49,883
Class B-4: $0
Class B-5: $0
Class C: $4,935
---------
Total: $56,370
The Debtors will fund this Plan with income from wages and savings.
The Debtors will retain the assets of the estate, and shall pay
ordinary living expenses, pay the operating expenses for the real
estate, and pay the creditors the amounts set forth in the Plan
from the proceeds thereof.
The Hon. Thomas J. Catliota for the District of Maryland will hold
on Oct. 24, 2016, at 2:00 p.m. a hearing to consider approval of
the disclosure statement explaining the Plan.
The Debtors' attorney:
Brett Weiss, Esq.
CHUNG & PRESS, LLC
6404 Ivy Lane, Suite 730
Greenbelt, Maryland 20770
Tel: (301) 924-4400
E-mail: lawyer@brettweiss.com
About the Debtors
Alemayehu Maru is 52 years old, and has been a resident of Maryland
since 1989. He graduated from the Howard University School of
Pharmacy with a Doctor of Pharmacy degree. He has been a
registered pharmacist for the last 19 years, and currently works as
a staff pharmacist at the Safeway pharmacy in Clinton.
Yante M Kebreab is 45 years old, and has been a resident of
Maryland since 1991. She graduated from Columbia Union College in
1996 with a Bachelor of Science in Nursing. Ms. Kebreab holds a
professional license in nursing from the District of Columbia.
She has been a registered nurse for the last 20 years, and has
worked at Sibley Memorial Hospital since 2001, with an emphasis on
obstetrical and fetal-maternal medicine.
Mr. Maru and Ms. Kebreab have been married for 19 years and have a
14 year-old daughter.
Alemayehu G. Maru and Yanet M. Kebreab filed for Chapter 11
bankruptcy protection (Bankr. D. Md. Case No. 15-24165) on Oct. 13,
2015.
An unsecured creditors' committee has not been appointed in this
case. No trustee or examiner has been appointed. Chung & Press,
LLC was appointed to represent the Debtors/Debtors-in-Possession as
counsel in the case.
ALLIANCE ONE: Prices $275M 8.500% Senior Secured Notes Offering
---------------------------------------------------------------
Alliance One International, Inc., disclosed that it has priced its
previously announced offering of senior secured first lien notes
due 2021 in the aggregate principal amount of $275 million.
Interest will accrue at a rate of 8.500% per annum and the issue
price for the Notes will be 99.085% of their face value. The offer
was made in the United States to qualified institutional buyers
pursuant to Rule 144A under the Securities Act of 1933, as amended,
and to persons in offshore transactions in reliance on Regulation S
under the Securities Act. The Notes offering is expected to close
on Oct. 14, 2016.
Alliance One intends to use a portion of the net proceeds of the
offering to repay in full all outstanding indebtedness and accrued
and unpaid interest owed under its existing senior secured
revolving credit facility. The Company intends to apply the
remaining net proceeds of the offering for general corporate
purposes, which is anticipated to result in a reduction in the
amount of borrowings under its foreign seasonal lines of credit as
those lines are renewed or replaced.
About Alliance One
Alliance One International is principally engaged in purchasing,
processing, storing, and selling leaf tobacco. The Company
purchases tobacco primarily in the United States, Africa, Europe,
South America and Asia for sale to customers primarily in the
United States, Europe and Asia.
Alliance One reported a net loss of $31.5 million on $261 million
of sales and other operating revenues for the three months ended
June 30, 2016, compared to a net loss of $25.95 million on $266.28
million of sales and other operating revenues for the three months
ended June 30, 2015.
As of June 30, 2016, Alliance One had $1.91 billion in total
assets, $1.67 billion in total liabilities and $242 million in
total equity.
* * *
As reported by the TCR on June 7, 2016, Moody's Investors Service
affirmed Alliance One International, Inc.'s 'Caa2' Corporate
Family Rating and revised the rating outlook to positive from
negative. Alliance One's 'Caa2' Corporate Family Rating reflects
Moody's expectation that credit metrics and liquidity will remain
weak over the next 12 to 18 months.
The TCR reported on Aug. 2, 2016, S&P Global Ratings lowered its
corporate credit rating on Morrisville, N.C.-based Alliance One
International Inc. (AOI) to 'CCC' from 'CCC+'. The rating outlook
is negative.
AMERICAN EAGLE: Disclosure Approved, Plan Confirmation on Nov. 10
-----------------------------------------------------------------
Colorado Bankruptcy Judge Howard R. Tallman approved the Disclosure
Statement for the Second Amended Joint Chapter 11 Plan of
Liquidation for American Eagle Energy Corporation and AMZG, Inc.
Judge Tallman directed the Debtors to file with the Court a summary
report of the ballots, reflecting a class-by-class summary of
ballots received accepting and rejecting the Plan on or before
November 7, 2016.
Judge Tallman further directed the parties to the Procedures Order
for applicable deadlines. The Troubled Company Reporter, published
on Sept. 29, 2016 these dates and deadlines with respect to voting
on and confirmation of the proposed Plan, as outlined in the
Procedures Order:
September 19, 2016 at 5:00 p.m. prevailing Mountain Time as
the Voting Record Deadline;
September 30, 2016 as deadline for the Debtors to distribute
Solicitation Packages;
October 28, 2016 at 5:00 p.m. prevailing Mountain Time as
Voting Deadline;
October 28, 2016 at 5:00 p.m. prevailing Mountain Time as the
deadline to file objections to Plan confirmation;
November 7, 2016, as the deadline for the Debtors and the
objecting parties shall exchange and file witness and exhibit lists
for the Confirmation Hearing, if objections to confirmation are
filed;
November 7, 2016, as the deadline for the Debtors to file with
the Court a summary report of the ballots;
November 14, 2016 at 9:30 prevailing Mountain Time, as the
hearing to consider confirmation of the Plan. The Confirmation
Hearing may be adjourned to November 15, and if necessary, may be
adjourned from time to time.
Earlier, BankruptcyData.com reported that American Eagle Energy
filed with the U.S. Bankruptcy Court a Revised Joint Chapter 11
Plan of Liquidation and related Disclosure Statement. According to
the Disclosure Statement, "The provisions of the Plan governing,
among other things: (i) the payment of allowed fees and expenses
incurred by the Creditors' Committee Professionals; (ii) the
payment of the Unsecured Creditor Payment; and (iii) the
establishment of the Liquidation Trust have been fully negotiated
by and among the Debtors, Ad Hoc Group, and the Committee . . . .
The Plan contemplates the creation of the Liquidating Trust
controlled by the Liquidating Trustee. The Ad Hoc Group will
designate the Liquidating Trustee prior to the Effective Date. The
Liquidation Trust will liquidate such assets in an orderly fashion
for the benefit of the Unsecured Creditors (Class 7). The Plan also
provides that the holders of Allowed Administrative Claims and
Allowed Priority Tax Claims will be paid in full on the Effective
Date or the date that such Claims become Allowed Claims. Upon the
Effective Date, existing equity in the Debtors will be cancelled.
Section 4.2 of the Plan incorporates a settlement offer to the
holders of Outstanding Well Lien Claims. Sections 4.3 - 4.5 of the
Plan incorporate the terms of settlements that have been agreed
upon by the Debtors, Indenture Trustee, and Ad Hoc Group, on the
one hand, and the claimant(s) whose claims are treated under
Sections 4.3 - 4.5, respectively, on the other hand. All Claims
against the Debtors shall be classified and treated pursuant to the
terms of the Plan. Unpaid Allowed Administrative Claims as of the
Effective Date are estimated to be $2,073,237.38.".
About American Eagle Energy Corp.
Littleton, Colorado-based American Eagle Energy Corporation is
engaged in the acquisition, exploration and development of oil and
gas properties. The Company is primarily focused on extracting
proved oil reserves from those properties.
American Eagle Energy Corporation and its wholly-owned subsidiary,
AMZG, Inc., filed on May 8, 2015, voluntary petitions (Bankr. D.
Colo., Case No. 15-15073). The case is assigned to Judge Howard R.
Tallman. The Debtors are represented by Elizabeth A. Green, Esq.,
at Baker & Hostetler LLP, in Orlando, Florida.
On May 13, 2015, Judge Tallman granted the Debtors' request for
joint administration.
American Eagle Energy disclosed total assets of $21,980,687 and
total liabilities of $193,604,113 as of the Chapter 11 filing.
The U.S. Trustee for Region 6 appointed seven creditors to serve On
the Official Committee of Unsecured Creditor. The Committee tapped
Pachulski Stang Ziehl & Jones LLP as counsel, and Conway Mackenzie
as financial advisor.
Counsel for the Ad Hoc Noteholder Group:
Paul N. Silverstein, Esq.
ANDREWS KURTH KENYON LLP
450 Lexington Avenue
New York, New York 10017
Telephone: (212) 850-2800
Facsimile: (212) 850-2929
- and -
Timothy A. ("Tad") Davidson II, Esq.
ANDREWS KURTH KENYON LLP
600 Travis Street, Suite 4200
Houston, TX 77002
Telephone: (713) 220-4200
Facsimile (713) 220-4285
ANOTHER DOOR OPENS: Asks for Extension of Period to File Plan
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Another Door Opens Recovery Center, LLC asks the U.S. Bankruptcy
Court for the District of New Jersey to extend its exclusivity
period within which it may file a plan of reorganization pursuant
to 11 U.S.C. Sec. 1121 (e)(1)(A).
The Debtor tells the Court that there are no complicated legal or
factual issues that exist and that its motion is not contested.
The hearing on the Debtor's Motion is scheduled on November 8, 2016
at 10:00 a.m.
Sec. 1121 (e)(1)(A) provides that in a small business case only the
debtor may file a plan until after 180 days after the date of the
order for relief, unless that period is extended as provided by
this subsection, after notice and a hearing.
About Another Door Opens Recovery
Center, LLC.
Another Door Opens Recovery Center, LLC, filed for Chapter 11
bankruptcy protection (Bankr. D.N.J. Case No. 16-17201) on April
14, 2016. The petition was signed by Annetta Patterson, president.
Scott Eric Kaplan, Esq., at Scott E. Kaplan, LLC, serves as the
Debtor's bankruptcy counsel. The Debtor estimated assets at $0 to
$50,000 and liabilities at $100,001 to $500,000.
APRICUS BIOSCIENCES: Anson Reports 7% Stake as of Sept. 30
----------------------------------------------------------
In a Schedule 13G filed with the Securities and Exchange
Commission, Anson Funds Management LP (f/k/a Frigate Ventures LP),
Anson Management GP LLC (f/k/a Admiralty Advisors LLC), Bruce R.
Winson, Anson Advisors Inc. (f/k/a M5V Advisors Inc.), Adam Spears
and Moez Kassam disclosed that as of Sept. 30, 2016, they
beneficially own 5,412,009 shares of common stock of Apricus
Biosciences, Inc., representing 7 percent of the shares
outstanding. A full-text copy of the regulatory filing is
available for free at https://is.gd/12aTt5
About Apricus Biosciences
Apricus Biosciences, Inc., is a Nevada corporation that was
initially formed in 1987. The Company has operated in the
pharmaceutical industry since 1995. The Company's current focus is
on the development and commercialization of innovative products and
product candidates in the areas of urology and rheumatology. The
Company's proprietary drug delivery technology is a permeation
enhancer called NexACT.
Apricus reported a net loss of $19.02 million in 2015, a net loss
of $21.8 million in 2014 and a net loss of $16.9 million in 2013.
The Company's balance sheet at June 30, 2016, showed total assets
of $6.17 million, total liabilities of $15.60 million and
stockholders' deficit of $9.44 million.
BDO USA, LLP, in La Jolla, California, issued a "going concern"
qualification on the consolidated financial statements for the year
ended Dec. 31, 2015, citing that the Company has negative working
capital and has suffered recurring losses and negative cash flows
from operations that raise substantial doubt about its ability to
continue as a going concern.
ARCH COAL: Fitch Withdraws 'D' Long Term Issuer Default Rating
--------------------------------------------------------------
Fitch Ratings has withdrawn Arch Coal, Inc.'s 'D' Long-Term Issuer
Default Rating for analytical reasons.
ARCTIC SENTINEL: Wants Jan. 31 Solicitation Period Extension
------------------------------------------------------------
Arctic Sentinel, Inc. f/k/a Fuhu, Inc. and its affiliated Debtors
ask the U.S. Bankruptcy Court for the District of Delaware to
extend their exclusive period to solicit acceptances to their
chapter 11 plan, through January 31, 2017.
The Debtors relate that they had filed their Plan of Liquidation
and accompanying Disclosure Statement on September 1, 2016. They
further relate that the hearing to approve the Disclosure Statement
was set on October 6, 2016.
The Debtors tell the Court that the Disclosure Statement has not
yet been approved, and that no confirmation hearing has been set.
The Debtors further tell the Court that they request an extension
of the solicitation period from December 2, 2016 to January 31,
2017, in order to ensure that they can complete the solicitation
process and have the Plan confirmed before the Exclusivity Period
lapses.
About Arctic Sentinel, Inc. f/k/a Fuhu, Inc.
Headquartered in El Segundo, California, Fuhu, Inc. was founded in
2008 by John Hui, Steve Hui, and Robb Fujioka. Fuhu was the maker
of children's Nabi tablets. Fuhu has sold more than four million
tablets, with more than 1.5 million sold during the 2014 fiscal
year. Nabi tablets were sold in more than 10,000 retail outlets,
including Target, Best Buy, Costco Wholesale, Toys ˜R Us, and
Walmart stores. Fuhu Holdings, Inc., a wholly-owned subsidiary,
owned significant intellectual property assets, including
trademarks and copyrights.
Fuhu, Inc., and Fuhu Holdings, Inc., filed Chapter 11 bankruptcy
petitions (Bankr. D. Del. Lead Case No. 15-12465) on Dec. 7, 2015.
The petitions were signed by James Mitchell as chief executive
officer. Judge Christopher S. Sontchi presides over the cases.
The Debtors estimated assets in the range of $10 million to $50
million and liabilities of $100 million to $500 million.
The Debtors tapped (a) Pachulski Stang Ziehl & Jones LLP as
bankruptcy counsel; (b) FTI Consulting, Inc., as financial advisor,
(c) KRyS Global USA, LLC, as financial advisor and investment
banker, and (d) Kurtzman Carson Consultants LLC, as claims,
noticing, and balloting agent.
The Official Committee of Unsecured Creditors won approval to
retain (i) Cooley LLP and Ballard Spahr LLP as bankruptcy counsel
to the Committee, (ii) PricewaterhouseCoopers LLP as provider of
financial advisory and certain data preservation services to the
Committee, and (iii) Berkeley Research Group LLC as forensic
accountants.
* * *
Mattel Inc. won an auction for the assets of the Debtors with an
offer of $21.5 million, subject to certain adjustments. The Court
approved the sale to Mattel on Jan. 22, 2016.
Debtor Fuhu Inc., changed its name to Arctic Sentinel, Inc.,
following the sale of the assets.
ASPEN GROUP: Alvin Fund Reports 7% Equity Stake as of Sept. 29
--------------------------------------------------------------
In a Schedule 13G filed with the Securities and Exchange
Commission, Alvin Fund LLC disclosed that as of Sept. 29, 2016, it
beneficially owns 9,662,111 shares of common stock of Aspen Group,
Inc., representing 7.004 percent of the shares outstanding. A
full-text copy of the regulatory filing is available for free at:
https://is.gd/4zrcH9
About Aspen Group
Denver, Colo.-based Aspen Group, Inc., was founded in Colorado in
1987 as the International School of Information Management. On
Sept. 30, 2004, it was acquired by Higher Education Management
Group, Inc., and changed its name to Aspen University Inc. On
May 13, 2011, the Company formed in Colorado a subsidiary, Aspen
University Marketing, LLC, which is currently inactive. On
March 13, 2012, the Company was recapitalized in a reverse merger.
Aspen's mission is to become an institution of choice for adult
learners by offering cost-effective, comprehensive, and relevant
online education. Approximately 88 percent of the Company's
degree-seeking students (as of June 30, 2012) were enrolled in
graduate degree programs (Master or Doctorate degree program).
Since 1993, the Company has been nationally accredited by the
Distance Education and Training Council, a national accrediting
agency recognized by the U.S. Department of Education.
Aspen Group reported a net loss of $2.24 million on $8.45 million
of revenues for the year ended April 30, 2016, compared to a net
loss of $4.26 million on $5.22 million of revenues for the year
ended April 30, 2015.
As of July 31, 2016, Aspen had $4.93 million in total assets, $3.64
million in total liabilities and $1.28 million in total
stockholders' equity.
ASTROTURF LLC: Seeks Feb. 23 Plan Filing Period Extension
---------------------------------------------------------
AstroTurf, LLC asks the U.S. Bankruptcy Court for the Northern
District of Georgia to extend its exclusive periods to file a
chapter 11 plan and solicit acceptances to the plan, through
February 23, 2017 and April 24, 2017, respectively.
The Debtor's exclusive periods to file a chapter 11 plan and
solicit acceptances to the plan, are currently set to expire on
October 26, 2016 and December 25, 2016, respectively.
The Debtor tells the Court that its case is large and complex. It
further tells the Court that as of the Petition Date, the Debtor
had over $50,000,000 in liabilities and was faced with several
difficult legal and operational challenges. The Debtor asserts
that the size and complexity of this case supports the extension of
the exclusivity periods.
The Debtor relates that on the Petition Date, it sought
authorization to sell substantially all of its assets pursuant to a
private sale. The Debtor further relates that the proposed Sale
was initially contested by both the Official Committee of Unsecured
Creditors and FieldTurf USA, Inc. The Debtor says that the Debtor,
the Official Committee of Unsecured Creditors, and certain
non-debtor entities affiliated with the Debtor engaged in mediation
in order to attempt to resolve the Official Committee of Unsecured
Creditors' objection to the Sale and various claims against the
Other Sellers. The Debtor further says that the mediation was
successful and resulted in a Settlement which was subsequently
approved by the Court.
The Debtor contends that FieldTurf still opposed the Sale
notwithstanding the resolution of the Official Committee of
Unsecured Creditors' objection to the Sale. The Debtor further
contends that it sought and obtained authorization to conduct a
claims estimation proceeding for claims held by FieldTurf, after
the closing of the sale on August 19, 2016.
The Debtor asserts that additional time is needed in order for the
Debtor to negotiate and prepare a plan and disclosure statement
with adequate information.
About Astroturf, LLC
AstroTurf, LLC sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. N. D. Ga. Case No. 16-41504) on June 28, 2016. The
petition was signed by Sean M. Harding, chief restructuring
officer. At the time of the filing, the Debtor estimated its
assets and liabilities at $10 million to $50 million.
The case is assigned to Judge Paul W. Bonapfel. The Debtor is
represented by Paul K. Ferdinands, Esq., at King & Spalding LLP, as
Chapter 11 counsel, and Wilmer Cutler Pickering Hale and Dorr LLP
as special counsel. Kurtzman Carson Consultants LLC serves as the
Debtor's claims, noticing, and balloting agent.
The official committee of unsecured creditors retained Morris,
Manning & Martin, LLP as its legal counsel, and GlassRatner
Advisory & Capital Group, LLC as its financial advisor.
ATLANTIC CITY, NJ: Avoids Repaying New Jersey Loan But Loses Aid
----------------------------------------------------------------
Romy Varghese and Katherine Greifeld, writing for Bloomberg News,
reported that Atlantic City won't have to immediately repay New
Jersey $62 million it borrowed after it broke the state's
conditions for the loan, but it won't get the remainder that had
been pledged.
According to the report, the distressed gaming hub failed to
approve actions needed to dissolve its water authority, as required
by the state as collateral for the $73 million loan package that
helped pull it from the brink of bankruptcy.
New Jersey could have demanded full payment of the amount already
advanced after notifying the city of the breach on Oct. 11, but
chose not to, said Tammori Petty, a spokeswoman for the Department
of Community Affairs, which oversees the seaside resort, the report
related.
The loss of the remainder of the loan and the specter of even less
cash assistance make it more difficult for Atlantic City officials
to stabilize municipal finances, the report further related. The
city, which has been headed toward insolvency since a third of its
casinos closed in 2014, has until Nov. 3 to develop a five-year
fiscal blueprint and avoid a state takeover, the report said.
* * *
The Troubled Company Reporter, on May 9, 2016, reported that S&P
Global Ratings has lowered its rating on Atlantic City, N.J.'s
general obligation (GO) debt to 'CC' from 'CCC-'. The outlook is
negative. The rating action resolves the CreditWatch Developing
that we placed on the rating on Jan. 22, 2016.
"The downgrade reflects our opinion that a default or debt
restructuring appears to be a virtual certainty even under the
most
optimistic circumstances," said S&P Global credit analyst Timothy
Little.
The TCR, on April 6, 2016, reported that Moody's Investors Service
has downgraded the City of Atlantic City, NJ's General Obligation
rating to Caa3 from Caa1 and removes the rating from review for
possible downgrade started on Jan. 29, 2016, affecting $16 million
of $345 million in general obligation bonds outstanding. The
outlook is negative.
The downgrade to Caa3 reflects the greater likelihood of default
within the next year and higher probability of significant
bondholder impairment given an ongoing political stalemate over an
Atlantic City fiscal rescue package. The downgrade also
incorporates renewed signals from the state that bondholders will
face losses as part of a possible debt restructuring. The Caa3
rating indicates an expected loss to bondholders of up to 35% of
principal, in light of the city's very large structural deficit
with limited sources of relief without state assistance.
The TCR on March 11, 2016, reported that Moody's Investors Service
has released a scenario analysis of possible outcomes for Atlantic
City, NJ (Caa1 review for downgrade) as the New Jersey (A2
negative) legislature considers rescue legislation and greater
influence in placing it on the path to
fiscal recovery.
"Without drastic action, Atlantic City could face a default as
early as April or May. The city also owes $190 million to casinos
that successfully appealed their property taxes. Factoring in
these
liabilities, we project a budget deficit of $102 million in fiscal
2016, ending December 31," Josellyn Yousef, a Moody's VP -- Senior
Analyst says in "Atlantic City, NJ: Rescue Legislation Key to
Fiscal Recovery."
The TCR, on Feb. 3, 2016, reported that Moody's Investors Service
has placed the City of Atlantic City, NJ Caa1 GO rating under
review for possible downgrade. The review for downgrade will
consider the adequacy of proposed legislative budget solutions and
the likelihood of municipal debt restructuring with bondholder
impairment. Within the next two months, Moody's expects the state
legislature to develop a plan that will specify the powers to be
granted to the New Jersey Local Finance Board to implement budget
improvements and restructure municipal debt. The probability of
bondholder impairment is likely low if budget solutions are
adequate and/or state financial support is high, but could rise if
they are not, which would lead to a revision of the rating
downward. A specific indication that bondholders would be
included
in adverse debt restructuring could also lead to a rating
downgrade. Beyond the rating review time horizon, outstanding tax
appeal refunds could pose a risk to bondholder security even if
adequate budget measures are achieved.
The TCR, on Feb. 1, 2016, reported that Standard & Poor's Ratings
Services has lowered its underlying rating on Atlantic City Board
of Education, N.J.'s existing general obligation (GO) bonds to
'BB-' from 'BBB-'. At the same time, S&P removed the rating from
CreditWatch negative. The outlook is negative.
At the same time, S&P affirmed its 'A' school program rating. The
outlook on the program rating is stable.
ATLAS DISPOSAL: Hires Todd S. Marrazzo as Accountant
----------------------------------------------------
Atlas Disposal Options, Inc., the Debtor, seeks authorization from
the U.S. Bankruptcy Court for the District of New Jersey to employ
Todd S. Marrazzo as accountant.
The Debtor requires Mr. Marazzo to prepare, support and/or review
monthly write-up, coding, bank reconciliations, internal controls,
balance sheet and profit loss, annual and/or quarterly corporate
payroll tax return review/preparation.
Mr. Marazzo's compensation for his professional services is a fixed
fee of $1,000.
Mr. Marrazzo attests he 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. Marrazzo's contact information is:
Todd S. Marrazzo
Marrazzo P.A.
1035 Route 46 East, Suite B101
Clifton, New Jersey 07013
Tel: (201) 654 7471
About Atlas Disposal Options
Atlas was formed to offer environmental contractors and industrial
clients a single source for all their disposal needs. The company
facilitates proper transportation and disposal of almost any waste
stream, utilizing their own trucks, personnel and equipment to
transport and dispose of any Petroleum, Sanitary or Hazardous
waste.
Atlas Disposal Options Inc. sought protection under Chapter 11 of
the Bankruptcy Code (Bankr. D. N.J. Case No. 16-19253) on May 12,
2016. The petition was signed by Paul Masser, president.
At the time of the filing, the Debtor disclosed $347,640 in assets
and $1.05 million in liabilities.
The case is assigned to Judge Vincent F. Papalia.
Richard Fogel, Esq. serves as counsel to the Debtor.
BAMC DEVELOPMENT: Plan Confirmation Hearing on Nov. 3
-----------------------------------------------------
Judge Catherine Peek McEven of the U.S. Bankruptcy Court for the
Middle District of Florida conditionally approved the Disclosure
Statement explaining BAMC Development Holding LLC's plan, after
determining that it contains adequate information.
Judge McEven will conduct a hearing on confirmation of the Plan,
including timely filed objections to confirmation, objections to
the Disclosure Statement, motions for cramdown, applications for
compensation, and motions for allowance of administrative claims on
Nov. 3, 2016 at 3:00 p.m.
Parties in interest are required to submit to the Clerk's office
their written ballot accepting or rejecting the Plan no later than
eight days before Nov. 3. Any objections to confirmation are also
required to be filed with the Court no later than seven days before
Nov. 3.
Judge McEven directed all creditors and parties in interest that
assert a claim against the Debtor which arose after the filing of
this case, including all professionals seeking compensation from
the estate of the Debtor, to file motions or applications for the
allowance of their claims with the Court no later than 15 days
after Sept. 29, 2016.
About BAMC Development
Headquartered in Tampa, Florida, BAMC Development Holding LLC filed
for Chapter 11 bankruptcy protection (Bankr. M.D. Fla. Case No.
16-05643) on June 30, 2016, estimating its assets at between $1
million and $10 million and its liabilities at between $1 million
and $10 million. The petition was signed by Thomas Ortiz, managing
member.
Judge Catherine Peek McEwen presides over the case.
W. Bart Meacham, Esq., who has an office in Tampa Florida, serves
as the Debtor's counsel.
The U.S. Trustee informs the U.S. Bankruptcy Court for the Middle
District of Florida that a committee of unsecured creditors has
not
been appointed in the Chapter 11 case of BAMC Development Holding
LLC due to insufficient response to the U.S. Trustee
communication/contact for service on the committee.
BANK OF COMMERCE: Seeks to Hire Nelson Mullins as Counsel
---------------------------------------------------------
Bank of Commerce Holdings, Inc., asks the Bankruptcy Court for
approval to employ Nelson Mullins Riley & Scarborough LLP (NMRS) as
its bankruptcy counsel, nunc pro tunc to Sept. 23, 2016.
NMRS is expected to render these professional services:
a. to prepare all necessary petitions, motions,
applications, orders, reports, and papers necessary to
commence the chapter 11 case;
b. to advise the Debtor of its rights, powers, and duties as
a debtor under chapter 11 of the Bankruptcy Code;
c. to prepare on behalf of the Debtor all motions,
applications, answers, orders, reports, and papers in
connection with the administration of the Debtor's
estate;
d. to take action to protect and preserve the Debtor's
estate, including the prosecution of actions on the
Debtor's behalf, the defense of actions commenced against
the Debtor in the chapter 11 case, the negotiation of
disputes in which the Debtor is involved, and the
preparation of objections to claims filed against the
Debtor;
e. to assist the Debtor with the sale of any of its assets
pursuant to Section 363 of the Bankruptcy Code;
f. to prepare the Debtor's disclosure statement and any
related motions, pleadings, or other documents necessary
to solicit votes on the Debtor's plan of reorganization;
g. to prepare the Debtor's plan of reorganization;
h. to prosecute on behalf of the Debtor, any proposed
chapter 11 plan and seeking approval of all transactions
contemplated therein and in any amendments thereto; and
i. to perform all other necessary legal services in
connection with the chapter 11 case.
The Debtor proposes to pay NMRS its customary hourly rates in
effect from time to time and reimbursement of expenses incurred in
connection with the case.
Peter J. Haley, Esq., assured the Court that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code and does not represent any interest adverse to
the Debtor and its estates.
The firm can be reached through:
Peter J. Haley, Esq.
Nelson Mullins Riley & Scarborough LLP
One Post Office Square
Boston, MA 02109
Tel: (617) 217-4714
Fax: (617) 217-4750
Email: peter.haley@nelsonmullins.com
About Bank of Commerce
Bank of Commerce Holdings, Inc., based in Sarasota, Florida, filed
a Chapter 11 petition (Bankr. M.D. Fla. Case No. 16-08197) on Sept.
22, 2016. Daniel F Blanks, Esq., at Nelson Mullins Riley &
Scarborough, LLP, serves as as bankruptcy counsel.
In its petition, the Debtor estimated $100,000 to $500,000 in
assets and $10 million to $50 million in liabilities. The petition
was signed by Charles O. Murphy, president.
No official committee of unsecured creditors has been appointed in
the case.
BASIC ENERGY: BlackRock Reports 3% Equity Stake as of Sept. 30
--------------------------------------------------------------
In an amended Schedule 13G filed with the Securities and Exchange
Commission, BlackRock, Inc. disclosed that as of Sept. 30, 2016, it
beneficially owns 1,271,569 shares of common stock of
Basic Energy Services Inc. representing 3 percent of the shares
outstanding. A full-text copy of the regulatory filing is
available for free at https://is.gd/xcIkB0
About Basic Energy
Energy Services, Inc. -- http://www.basicenergyservices.com/--
provides a wide range of well site services in the United States to
oil and natural gas drilling and producing companies, including
completion and remedial services, fluid services, well servicing
and contract drilling. These services are fundamental to
establishing and maintaining the flow of oil and natural gas
throughout the productive life of a well. The Company's broad
range of services enables us to meet multiple needs of its
customers at the well site.
Basic Energy reported a net loss of $242 million in 2015 compared
to a net loss of $8.34 million in 2014. As of June 30, 2016, Basic
Energy had $1.07 billion in total assets, $1.14 billion in total
liabilities, and a $62.4 million total stockholders' deficit.
"If we are unable to generate sufficient cash flow or are otherwise
unable to obtain the funds required to make principal and interest
payments on our indebtedness, or if we otherwise fail to comply
with the various covenants in instruments governing any existing or
future indebtedness, we could be in default under the terms of such
instruments. In the event of a default, the holders of our
indebtedness could elect to declare all the funds borrowed under
those instruments to be due and payable together with accrued and
unpaid interest, secured lenders could foreclose on any of our
assets securing their loans and we or one or more of our
subsidiaries could be forced into bankruptcy or liquidation. If
our indebtedness is accelerated, or we enter into bankruptcy, we
may be unable to pay all of our indebtedness in full. Any of the
foregoing consequences could restrict our ability to grow our
business and cause the value of our common stock to decline," the
Company warned in its annual report for the year ended Dec. 31,
2015.
* * *
The TCR reported on March 14, 2016, that Moody's Investors Service
downgraded Basic Energy Services, Inc.'s Corporate Family Rating
(CFR) to Caa3 from Caa1, its senior unsecured notes rating to Ca
from Caa2, and lowered its Speculative Grade Liquidity Rating to
SGL-4 from SGL-3. The outlook remains negative.
As reported by the TCR on Aug. 17, 2016, S&P Global Ratings lowered
its long-term corporate credit rating on TX-based oilfield services
company Basic Energy Services Inc. to 'CC' from 'CCC-'.
"The downgrade follows Basic's announcement on Aug. 15, 2016, that
it has decided to defer the coupon payment on its senior unsecured
notes maturing 2019," said S&P Global Ratings credit analyst
Christine Besset. "The payment due date was Aug. 15, 2016, and
Basic is using the 30-day grace period provided in the notes'
indenture because the company is in the process of restructuring
its balance sheet," she added.
BC ACQUISITIONS: Gets Approval to Hire Willis & Wilkins as Counsel
------------------------------------------------------------------
BC Acquisitions, LLC received approval from the U.S. Bankruptcy
Court for the Western District of Texas to hire Willis & Wilkins,
LLP.
The firm will serve as the Debtor's legal counsel in connection
with its Chapter 11 case and will be paid an hourly rate of $375
for its services.
The services to be provided by the firm include advising the Debtor
regarding its duties and assisting the Debtor in the formulation of
a plan of reorganization.
James Wilkins, Esq., the attorney designated to represent the
Debtor, disclosed in a court filing that he has no connections with
the Debtor or any of its creditors.
Willis & Wilkins can be reached through:
James Samuel Wilkins, Esq.
Willis & Wilkins, LLP
711 Navarro St Suite 711
San Antonio, TX 78205
Tel: 210-271-9212
Fax: 210-271-9389
Email: jwilkins@stic.net
About BC Acquisitions
BC Acquisitions, LLC sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. W. D. Texas Case No. 16-52245) on October
3, 2016. The petition was signed by Allen Torans, Jr., managing
member.
The case is assigned to Judge Craig A. Gargotta.
At the time of the filing, the Debtor estimated its assets and
liabilities at $1 million to $10 million.
BDC SHARED SERVICES: Have Until Nov. 16 to File Plans
-----------------------------------------------------
Judge Michael B. Kaplan of the U.S. Bankruptcy Court for the
District of New Jersey extended BDC Shared Services LLC and Regnis
Management LLC's exclusive periods within which they may file plans
of reorganization and solicit acceptances to such plans, to
November 16, 2016 and January 15, 2017, respectively.
The Debtors previously asked the Court to extend their exclusive
periods, contending that that a fundamental pre-requisite to being
able to propose plans of reorganization in the bankruptcy cases is
a determination by a court of competent jurisdiction of the
legality of the pre-petition arrangement between Dr. Todd Singer's
14 dental practices, Regnis, and Topspin. The Debtors further
contended that Regnis sold assets to Topspin as an element of the
business arrangement with Topspin, the title to which are in
dispute, and the ongoing ability of BDC Shared Services to provide
staffing and related services to the 14 dental practices will be
impacted by that illegality determination. The Debtors added that
the value of an important Regnis asset, the 40% equity interest in
the Topspin dental service organization, will be impacted by that
illegality determination. The Debtors asserted that it makes no
sense for plans of reorganization to yet be proposed for the
Debtors given the vastly different scenarios which may exist based
on the ultimate decision on illegality. The Debtors related that
this unresolved contingency factor is the most important matter
impacting the further extension of exclusivity.
About BDC Shared Services LLC
Headquartered in Skillman, New Jersey, BDC Shared Services LLC is a
staffing company which provides the entirety of the work force to
the 14 dental practices owned and operated by Dr. Todd Singer, and
performs other services for the benefit of the dental practices.
Based in Skillman, New Jersey, Regnis Management LLC performs
consulting services relating to the practice of dentistry, handles
real estate management services.
BDC Shared Services filed for Chapter 11 bankruptcy protection
(Bankr. D. N.J. Case No. 15-27374) on Sept. 15, 2015, listing
$107,722 in total assets and $20.5 million in total liabilities.
Judge Michael B. Kaplan presides over the case.
On the same day, REGNIS Management filed for Chapter 11 bankruptcy
protection (Bankr. D. N.J. Case No. 15-27375), listing $179,592 in
total assets and $20 million in total liabilities. Judge Christine
M. Gravelle presides over the case.
Barry J. Roy, Esq., at Rabinowitz Lubetkin & Tully, LLC, serves as
the Debtors' bankruptcy counsel.
The petitions were signed by Todd Singer, president.
BONANZA CREEK: BlackRock Reports 4% Equity Stake as of Sept. 30
---------------------------------------------------------------
BlackRock, Inc., disclosed in an amended Schedule 13G filed with
the Securities and Exchange Commission that as of Sept. 30, 2016,
it beneficially owned 1,989,317 shares of common stock of Bonanza
Creek Energy Inc. representing 4 percent of the shares outstanding.
A full-text copy of the regulatory filing is available for free at
https://is.gd/NWSgt9
About Bonanza Creek
Bonanza Creek is an independent energy company engaged in the
acquisition, exploration, development and production of onshore oil
and associated liquids-rich natural gas in the United States.
Bonanza Creek Energy, Inc. was incorporated in Delaware on Dec. 2,
2010, and went public in December 2011.
As of June 30, 2016, Bonanza Creek had $1.29 billion in total
assets, $1.18 billion in total liabilities and $117.80 million in
total stockholders' equity.
The Company reported a net loss of $746 million in 2015 following
net income of $20.3 million in 2014.
* * *
As reported by the TCR on Sept. 13, 2016, S&P Global Ratings raised
its corporate credit rating on U.S.-based oil and gas exploration
and production company Bonanza Creek to 'CC' from 'D'.
BROOKLYN INTERIORS: Hires McBreen & Kopko as Restructuring Counsel
------------------------------------------------------------------
Brooklyn Interiors, Inc., d/b/a The DDC Group, seeks authorization
from the U.S. Bankruptcy Court for the Southern District of New
York to employ McBreen & Kopko as restructuring counsel, nunc pro
tunc to the June 22, 2016 petition date.
The Debtor requires McBreen & Kopko to:
(a) advise the Debtor with respect to their rights, powers and
duties as a debtor and debtor-in-possession in the continued
management and operation of their business and properties;
(b) attend meetings and negotiate with the representatives of
the Debtor's lenders and other parties-in-interest;
(c) attend meetings and negotiate with the creditor
representatives;
(d) advise and consult the Debtor regarding the conduct of the
case, including all of the legal and administrative requirements of
operating in chapter 11;
(e) advise the Debtor, as necessary, on matters relating to
the evaluation of the assumption, rejection or assignment of
unexpired leases and executory contracts;
(f) provide advice to the Debtor with respect to legal issues
arising in or relating to the Debtor's ordinary course of business,
meet with the Debtor's financial advisors, advice on employee,
workers' compensation, employee benefits, executive compensation,
tax, banking, insurance, corporate, business operation, contracts,
joint ventures, real property, litigation and regulatory matters;
(g) take all necessary action to protect and preserve the
Debtor's estate, including the prosecution of actions on their
behalf, the defense of any actions commenced against the estate,
negotiations concerning all litigation in which the Debtor may be
involved and objections to claims filed against the estate (subject
to the limitations described in greater detail in the Reynolds
Verified Statement);
(h) negotiate and prepare plan(s) of reorganization,
disclosure statement(s) and all related agreements and/or documents
and taking any necessary action on behalf of the Debtor to obtain
confirmation of such plan(s);
(i) prepare on the Debtor's behalf all petitions, motions,
applications, answers, orders, reports, and papers necessary to the
administration of the estate;
(j) appear before the Court, any appellate courts, and the
Office of the United States Trustee, and protecting the interests
of the Debtor’s estate before such courts and the Office of the
United States Trustee; and,
(k) perform all other necessary legal services and providing
all other necessary legal advice to the Debtor in connection with
these chapter 11 cases.
McBreen & Kopko will be paid at these hourly rates:
Partners $400.00
Associates $275.00
Legal Assistant $125.00
McBreen & Kopko will be customarily reimbursed for all expenses it
incurs on a client's behalf. These expenses include, without
limitation, travel costs, telecommunications, express mail,
messengers, photocopying costs, computerized research charges,
court fees and transcript costs.
Prior to the petition date, the Debtor paid McBreen & Kopko a
retainer of $17,575.00 as a general retainer for the Chapter 11
case, $1,717.00 of which was for the filing fee.
Kenneth A. Reynolds, Esq., partner of McBreen & Kopko, 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.
McBreen & Kopko can be reached at:
Kenneth A. Reynolds, Esq.
MCBREEN & KOPKO
500 North Broadway
Jericho, N.Y. 11753
Tel.: (516) 364-1095
Fax: (516) 364-0612
Email: kreynolds@mklawnyc.com
About Brooklyn Interiors
Brooklyn Interiors, Inc. filed a Chapter 11 petition (Bankr.
S.D.N.Y. Case No. 1622845), on June 22, 2016. The Debtor is
represented by Kenneth A. Reynolds, Esq. at McBreen & Kopko. The
Petition was signed by Dennis Darcy, president.
At the time of filing, the Debtor estimated assets at $100,000 to
$500,000 and liabilities at $500,000 to $1 million.
CALGI CONSTRUCTION: Unsecureds to Recoup 10% Under Plan
-------------------------------------------------------
Calgi Construction Company Inc., filed a second amended plan of
reorganization and accompanying disclosure statement, proposing
that distributions to creditors will occur quarterly over a five
year period beginning on the Effective Date, except professional
fees, which will be paid 50% on the Effective Date and 50% over
eight quarters starting beginning three months after the Effective
Date pursuant to agreement between the Professionals and the
Debtor.
Currently there are approximately (i) administrative claims in the
approximate amount of $80,000; (ii) secured claims in the
approximate amount of $120,450.06; (iii) priority tax claims in the
approximate amount of $142,594.87; (iv) priority non-tax claims in
the amount of zero; (v) general unsecured claims in the approximate
amount of $402,525.73; and (vi) insider claims in the amount of
$60,000. General unsecured creditors are estimated to recover 10%
of their allowed claims.
Payments under the Plain will be funded a contribution from by
Calgi Realty LLC and from profits from continued operations.
A full-text copy of the Second Amended Disclosure Statement dated
Oct. 7, 2016, is available at:
http://bankrupt.com/misc/nysb14-22249-112.pdf
Calgi Construction Company Inc., filed a Chapter 11 petition
(Bankr. S.D.N.Y. Case No. 14-22249) on February 28, 2014, and is
represented by Dawn Kirby Arnold, Esq., at Delbello Donnellan
Weingarten Wise & Wiederkehr, LLP, in White Plains, New York.
At the time of filing, the Debtor had $329,951 in total assets and
$1.41 million in total liabilities.
CALLSOCKET II: Case Summary & 20 Largest Unsecured Creditors
------------------------------------------------------------
Debtor: CallSocket II, L.P.
409 13th Street
Oakland, CA 94612
Case No.: 16-42823
Chapter 11 Petition Date: October 10, 2016
Court: United States Bankruptcy Court
Northern District of California (Oakland)
Judge: Hon. Roger L. Efremsky
Debtor's Counsel: Eric A. Nyberg, Esq.
KORNFIELD, NYBERG, BENDES & KUHNER, P.C.
1970 Broadway #225
Oakland, CA 94612
Tel: (510)763-1000
E-mail: e.nyberg@kornfieldlaw.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Thomas Henderson, managing member of
SFRC LLC, sole member of CallSocket II LLC, general partner of
CallSocket II LP.
A copy of the Debtor's list of 20 largest unsecured creditors is
available for free at http://bankrupt.com/misc/canb16-42823.pdf
CALPINE CORP: Egan-Jones Lowers Commercial Paper Rating to C
------------------------------------------------------------
Egan-Jones Ratings Company, on Oct. 10, 2016, downgraded the
ratings on commercial paper issued by Calpine Corp. to C from B.
Calpine Corporation is America's largest generator of electricity
from natural gas and geothermal resources. A Fortune 500 company
based in Houston, Texas, the company's stock trades on the New York
Stock Exchange under the symbol CPN.
CARIBBEAN COMMERCIAL: Chapter 15 Case Summary
---------------------------------------------
Chapter 15 Petitioner: William Tacon
Chapter 15 Debtor: Caribbean Commercial Investment Bank Ltd.
Ritter House
P.O. Box 3486
Wickhams Cay II
Tortola, British Virgin Islands
Chapter 15 Case No.: 16-12844
Type of Business: Commercial Bank
Chapter 15 Petition Date: October 11, 2016
Court: United States Bankruptcy Court
Southern District of New York (Manhattan)
Judge: Hon. Stuart M. Bernstein
Chapter 15 Petitioner's Counsel: James C. McCarroll, Esq.
Jordan W. Siev, Esq.
Kurt F. Gwynne, Esq.
REED SMITH, LLP
599 Lexington Avenue
New York, NY 10022
Tel: (212) 521-5400
Fax: (212) 521-5450
E-mail: jmccarroll@reedsmith.com
jsiev@reedsmith.com
kgwynne@reedsmith.com
Estimated Assets: Not Indicated
Estimated Debt: Not Indicated
CELESTE ADRIAN MD: Plan Confirmation Hearing Scheduled for Nov. 17
------------------------------------------------------------------
A First Amended Disclosure Statement under Chapter 11 of the
Bankruptcy Code was filed by debtor Celeste Adrian MD, LLC, on
Sept. 16, 2016. Following a hearing on Sept. 23, 2016, Judge Lloyd
King of the U.S. Bankruptcy Court for the District of Hawaii
ordered that:
(1) The First Disclosure Statement filed by Debtor, Celeste
Adrian MD, LLC dated Sept. 16, 2016 is approved.
(2) Nov. 10, 2016 is fixed as the last day for filing written
acceptances or rejections of the First Amended Plan.
(3) Nov. 10, 2016 is the last day for creditors to return their
ballots to accept or reject the First Amended Plan.
(4) Within five days after the entry of the Disclosure Statement
Order, approving the First Amended Disclosure Statement, the First
Amended Plan of Reorganization, and a ballot conforming to Ballot
for Accepting or Rejecting Plan of Reorganization shall be mailed
to creditors, equity security holders, and other
parties in interest, and will be transmitted to the United States
Trustee, as provided in Fed. R. Bankr. P. 3017(d).
(5) If acceptances are filed for more than one plan, preferences
among the plans so accepted may be indicated.
(6) Nov. 17, 2016 at 9:30 a.m. is fixed for the hearing on
confirmation of the First Amended Plan of Reorganization at the
United States U.S. Bankruptcy Court for the District of Hawaii,
1132 Bishop Street, Suite 350L, Honolulu, Hawaii 96813.
Celeste Adrian MD, LLC, filed a Chapter 11 petition (Bankr. D.
Hawaii Case No. 16-00266) on March 16, 2016. The Debtor is
represented by Jerrold K. Guben, Esq., at O'Connor Playdon & Guben.
The Debtor estimated $100,000 to $500,000 in assets and debt.
CLARK-CUTLER: GM Asks Judge to Toss Lawsuit
-------------------------------------------
Sarah Chaney, writing for The Wall Street Journal Pro Bankruptcy,
reported that General Motors Co. is asking a judge to halt a
litigation battle with bankrupt auto-parts supplier
Clark-Cutler-McDermott Co.
According to the report, in recent court filings, GM seeks the
dismissal of CCM's lawsuit accusing the auto maker of lying in
pricing negotiations and tricking CCM into entering a contract that
saddled the Massachusetts company with debt in the months leading
up to its bankruptcy filing.
CCM's complaint "is nothing but a brazen attempt to avoid the
consequences of its poor business decisions and management by
(wrongly) blaming GM," the automaker said in a court filing with
the U.S. Bankruptcy Court in Massachusetts, the report related.
GM added that the complaint should be dismissed because it is based
on legal arguments that are "fatally flawed" and aren't supported
by facts, the report further related.
WSJ recalled that the 115-year old auto-parts supplier filed for
chapter 11 protection on July 7, blamed its filing on a
money-losing contract with GM, which accounted for about 80% of
CCM's business.
According to CCM's complaint, filed in bankruptcy court in
September, GM executives insincerely negotiated new pricing for
auto parts "so that it could keep [Clark-Cutler-McDermott] in
business just long enough for GM to line up new suppliers," WSJ
cited. CCM added that GM was looking out for its own interests
rather than those of its longstanding business partner, WSJ said.
About Clark-Cutler-McDermott Company
Automobile parts manufacturer Clark-Cutler-McDermott Company and
its subsidiary CCM Automotive Lafayette LLC filed chapter 11
petitions (Bankr. D. Mass. Lead Case No. 16-41188) on July 7,
2016.
The petitions were signed by James T. McDermott, CEO. Hon.
Christopher J. Panos presides over the case.
The Debtors are represented by Charles A. Dale, III, Esq., David
Mawhinney, Esq., and Mackenzie Shea, Esq., at K&L Gates LLP.
The Debtors each estimated assets of $10 million to $50 million
and
debt of $10 million to $50 million at the time of the chapter 11
filings.
The Official Committee of Unsecured Creditors of
Clark-Cutler-McDermott Company, et al., seeks authorization from
the U.S. Bankruptcy Court for the District of Massachusetts to
retain Mintz Levin Cohn Ferris Glovsky and Popeo, P.C. as counsel
to the Committee.
* * *
The Troubled Company Reporter, on Sept. 30, 2016, reported that the
Debtor filed a Joint Plan of
Liquidation and accompanying Disclosure Statement, which provides
for the liquidation and distribution of all of the Debtors'
assets.
The Debtors generated sales totaling $4.88 million, from
transactions approved by the Bankruptcy Court. They closed each
sale transaction during the week of Sept. 12, 2016.
Through these Sales, the Debtors liquidated substantially all of
their machinery and equipment, in additional to enhancing the value
of their Lafayette real estate by negotiating lease with Bonded
Logic, Inc., which carries a potential eleven-year term.
Significant assets remain in the Estates to be liquidated, however,
including real estate in Lafayette and Franklin, which CCM
Automotive Lafayette LLC owns through its corporate subsidiaries,
the 45% stake in a joint venture located in Irapuato, Mexico (the
Mexico JV), the 20% stake in Marves Industries, Inc., Airloc LLC,
and the lawsuit captioned The Official Committee of Unsecured
Creditors et al. v. General Motors, LLC, Case No. 16-04083 (Bankr.
D. Mass.) (the "GM lawsuit").
Under the Plan, General Unsecured Claims will receive a pro rata
share of distributable cash in the form of periodic distributions
from the Liquidating Trust from time to time. The Disclosure
Statement did not indicate estimated recovery for these Claims.
A full-text copy of the Disclosure Statement dated Sept. 16, 2016,
is available at http://bankrupt.com/misc/mab16-41188-254.pdf
COIL WORKS: Files for Insolvency, Oct. 17 Creditor's Meeting Set
----------------------------------------------------------------
Coil Works Inc. of Calgary, Alberta, filed a proposal to creditors
pursuant to Part III, Division I of the Bankruptcy and Insolvency
Act on Sept. 27, 2016. Hardie & Kelly Inc. was appointed as
trustee.
The first meeting of creditors will be held at 10:45 p.m. on Oct.
17, 2016, at the Hotel Blackfoot, 5940 Blackfoot Trail SE, Calgary,
Alberta. To participate in the meeting, creditors must lodge a
proof of claim with the trustee before the meeting.
The proposal and associated documents can be accessed by referring
to the trustee's website at
http://www.relieffromdebt.ca/coil-works-inc/
For further information, contact:
Charla Smith
Hardie & Kelly Inc.
2nd Street S.W.
Calgary, AB T2H 0H2
Tel: 403-536-8506
403-777-9999
Fax: 403-640-0591
Email: csmith@insolvency.net
Found in 2010, Coil Works Inc. is an oil field contractors and
service company in Castor, Alberta.
CONNECT TRANSPORT: Seeks to Hire Kurtzman as Claims Agent
---------------------------------------------------------
Connect Transport, LLC and its affiliates have filed separate
applications seeking court approval to hire a claims and noticing
agent in connection with their Chapter 11 cases.
In their applications, the Debtors sought approval from the U.S.
Bankruptcy Court for the Northern District of Texas to employ
Kurtzman Carson Consultants LLC to oversee the distribution of
notices and the processing of claims filed in their bankruptcy
cases.
Kurtzman has received a retainer in the amount of $25,000 from the
Debtors. The firm will hold the retainer as security for the
payment of its fees and expenses.
Evan Gershbein, senior vice-president of Kurtzman's corporate
restructuring division, disclosed in a court filing that the firm
does not hold any interests adverse to the Debtors, and that it is
a "disinterested person" as defined in section 101(14) of the
Bankruptcy Code.
The firm can be reached through:
Evan Gershbein
Kurtzman Carson Consultants LLC
2335 Alaska Avenue
El Segundo, CA 90245
Tel: (310) 823-9000
Fax: (310) 823-9133
About Connect Transport
Connect Transport, LLC, et al., are privately-owned, integrated
midstream providers of transportation, storage, producer, and
marketing services for crude oil, natural gas liquids, and
condensates.
They sought bankruptcy protection with the U.S. Bankruptcy Court
for the Northern District of Texas (Case No. 16-33971) on October
4, 2016. The Debtors estimated assets of $500,000 to $1 million
and liabilities of $50 million to $100 million.
Dykema Cox Smith serves as the Debtors' counsel and Conners &
Winters LLP as special counsel. Houlihan Lokey Capital, Inc. has
been tapped as financial advisor. Kurtzman Carson Consultants LLC
serves as claims and noticing agent.
CORE RESOURCE: Creditors' Committee Seeks Ch. 11 Trustee
--------------------------------------------------------
The Official Committee of Unsecured Creditors filed a motion asking
the United States Bankruptcy Court for the District of Arizona to
appoint a Chapter 11 Trustee for Core Resource Management, Inc.,
and Nitro Petroleum, Inc..
On or about September 30, 2016, the Creditors' Committee and Debtor
Core Resource Management, Inc., filed a Joint Motion to Dismiss the
Bankruptcy Case of Nitro Petroleum, Inc., only on the basis that
Nitro has been merged into Core and does not exist as a separate
entity. The Committee believes that the Nitro case will be
dismissed and therefore has not included a request for a trustee in
that case.
According to the Committee, the record in Core Resource's
bankruptcy case demonstrates that cause exists to appoint a
trustee. The Committee asserts that Core has failed to timely,
fully or correctly identified its assets and liabilities, and has
demonstrated numerous shortcomings in its ability to fully manage
its affairs. Thus, given the on-going and impending issues arising
with the operation of Core's business, the Committee and Core
request immediate consideration of the Motion.
The Official Committee of Unsecured Creditors is represented by
Carolyn J. Johnsen, Esq., and Katherine A. Sanchez, Esq., at
Dickinson Wright PLLC, in Phoenix, Arizona.
About Core Resources
Core Resources Management, Inc., sought protection under Chapter 11
of the Bankruptcy Code (Bankr. D. Ariz. Case No. 16-06712) on June
13, 2016. The petition was signed by Dennis Miller, chief operating
officer. The case is assigned to Judge Brenda K. Martin.
At the time of the filing, the Debtor estimated its assets and
debts at $1 million to $10 million.
Hauf PLC serves as counsel to the Debtor.
The U.S. Trustee, on July 15, 2016, appointed three creditors to
serve in the official committee of unsecured creditors in the
Debtors' cases. Dickinson Wright PLLC serves as counsel to the
Committee.
COSHOCTON MEMORIAL: Seeks Jan. 26 Plan Exclusivity Extension
------------------------------------------------------------
Coshocton County Memorial Hospital Association asks the U.S.
Bankruptcy Court for the Northern District of Ohio to extend its
exclusive periods to file a plan and solicit acceptances to the
plan, to January 26, 2017 and March 28, 2017, respectively.
The Debtor tells the Court that its primary focus, in addition to
operations, has been on the marketing and sale of substantially all
of its assets and discussing resolutions on pending issues with its
major creditor constituencies. The Debtor further tells the Court
that it and its professionals established and managed a
comprehensive marketing and sale process in an effort to attract
potential purchasers for the Debtor’s assets.
The Debtor relates that although the Debtor sought additional bids,
the Debtor did not receive any other bids for the Debtor’s assets
other than the stalking horse bid from Prime Healthcare Foundation,
Inc. and Prime Healthcare-Coshocton, LLC, collectively known as
Prime. The Debtor further relates that it received approval of the
sale of the Debtor’s assets to Prime at a sale hearing on
September 27, 2016, and that after Court approval of the sale, the
Debtor’s management and professionals will work diligently to
close a sale in the coming weeks.
The Debtor intends to propose a consensual chapter 11 plan. It
contends that given the number of matters still outstanding with
respect to the sale of its assets and other related matters, the
Debtor needs additional time to formulate and negotiate the
details. The Debtor further contends that the requested extensions
of the Exclusivity Period and Solicitation Period are intended to
facilitate the distribution of the proceeds of the Debtor’s
assets in the most efficient way and not for the purpose of unduly
delaying a plan process. The Debtor adds that such additional time
will also allow the Debtor to, among other things, negotiate the
structure of a plan with the Committee, close the sale, allocate
proceeds from the sale of the Debtor’s assets, and continue to
assess the amount and categories of claims against the estate.
About Coshocton County Memorial Hospital Association
Coshocton County Memorial Hospital Association aka CCMH aka
Coshocton Hospital aka Coshocton County Memorial Hospital operates
a general acute care not-for-profit hospital in Coshocton, Ohio.
The hospital has been designated as a Sole Community Hospital and
is licensed for 56 beds. In addition to the main hospital
facility, the Debtor has a number of primary care and specialty
physician clinics. The Debtor has annual net revenue of more than
$50 million and employs more than 400 individuals. The hospital is
located in eastern central Ohio between Columbus and Pittsburgh and
is the only hospital within 25 miles. It has been serving the
healthcare needs of the community for more than 100 years.
Coshocton County Memorial Hospital Association filed a voluntary
petition under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Ohio
Case No. 16-51552) on June 30, 2016. The petition was signed by
Lorri Wildi, chief executive officer. The case is pending before
Judge Alan M. Koschik.
The Debtor estimated assets at $10 million to $50 million and
liabilities at $10 million to $50 million.
McDonald Hopkins LLC serves as the Debtor's counsel. Garden City
Group, LLC, is the Debtor's notice, claims and balloting agent.
On July 8, 2016, the U.S. Trustee for Region 9 appointed four
creditors of Coshocton County Memorial Hospital Association to
serve on the official committee of unsecured creditors.
CYNTHIA JOY KWASIGROCH: Ch. 11 Plan Set for Nov. 15 Confirmation
----------------------------------------------------------------
Judge Scott H. Gan has fixed Nov. 15, 2016, at 1:30 p.m. as the
hearing to consider confirmation of Chapter 11 Plan filed by debtor
Cynthia Joy Kwasigroch.
The Court on Sept. 27, 2016, approved the Debtor's First Amended
Disclosure Statement.
Written acceptances or rejections of the Plan and objections to
confirmation of the Plan are due at five business days prior to the
hearing date set for confirmation of the Plan.
If the Debtor is an individual, the above hearing date is the last
date to file a complaint objecting to the discharge of the Debtor
pursuant to 11 U.S.C. Sections 1141 & 727.
Cynthia Joy Kwasigroch submitted a proposed First Amended
Disclosure Statement dated September 27, 2016, in connection with
her First Plan of Reorganization dated July 6, 2016.
As reflected in the original schedules, the Debtors estimated
unsecured claims in the amount of $254,357 (Class 10), which does
not include any deficiency amounts for secured creditors. The
class will be paid the sum of $1,920 on a quarterly basis, pro
rata, from Debtors' disposable income, to be paid on the last day
of each quarter, beginning with the quarter ending after the
Effective Date and anticipated to be Dec. 31, 2016, and continuing
each quarter thereinafter for five years. Any liens held by the
Class 10 creditors shall be null and void and removed as of the
Effective Date.
The Debtor is currently earning income from her business, a
combined assisted living facility and hospice.
A copy of the First Amended Disclosure Statement is available for
free at:
http://bankrupt.com/misc/azb16-02234_Am_DS_Kwasigroch.pdf
About Cynthia Kwasigroch
Born in Oxford, Germany, and a former member of the United States
Air Force, Cynthia Kwasigroch established an assisted living home
in 2003 with her husband and was licensed by the department of
health for 10 residents. In 2010, Cynthia and her husband
divorced after 30 years of marriage. The divorce caused many
financial struggles for Cynthia.
Cynthia Joy Kwasigroch filed for Chapter 11 bankruptcy protection
(Bankr. D. Ariz. Case No. 16-02234) on March 8, 2016.
The Debtor tapped Eric Slocum Sparks, Esq., at the Law Office of
Eric Slocum Sparks, P.C., in Tucson, Arizona, serves as counsel to
the Debtor.
DAVID KARMEL: Court Sets Disclosure Hearing for November 15
-----------------------------------------------------------
The Honorable Scott H. Gan of the U.S. Bankruptcy Court for the
District of Arizona will consider the approval of the Disclosure
Statement explaining David Karmel's Plan on November 15, 2016 at
1:30 p.m.
Judge Gan has fixed as the last day for filing written objections
to the Disclosure Statement at five business days prior to the
hearing date set for approval of the Disclosure Statement.
Judge Gan has also ordered that any creditor or interest holder
who wants to participate in voting on any Plan of Reorganization or
to share in any distribution from the Debtor’s estate shall file
a proof of claim or proof of interest on or before November 15,
2016.
Request for copies of the Disclosure Statement and Plan shall be
mailed to the proponent of the Plan in care of:
Charles R. Hyde
325 W. Franklin St., Suite 103
Tucson, AZ 85701
The bankruptcy case is David B. Karmel, Case No. 15-02229 (Bankr.
D. Ariz.).
DDR CORP: Fitch Affirms 'BB' Preferred Stock Rating
---------------------------------------------------
Fitch Ratings has affirmed the credit ratings for DDR Corp. (NYSE:
DDR) including the Issuer Default Rating (IDR) at 'BBB-'. The
Rating Outlook is Stable.
KEY RATING DRIVERS
DDR's 'BBB-' IDR takes into account the company's credit strengths
including ongoing improvements in the quality of the company's
retail property portfolio and the management team's focus on
refining the asset base and simplifying the business. DDR benefits
from strong expected fixed-charge coverage for the rating, a
granular tenant roster with select quality credit tenants, and
proven access to various sources of capital. Fitch anticipates
leverage will be toward the stronger end of the range Fitch
considers appropriate for the 'BBB-' rating over the next 12 to 24
months.
Credit concerns include recent management turnover and a liquidity
coverage ratio of below 1.0x assuming no access to external capital
sources and when taking into account the company's development
pipeline. In addition, while DDR continues to grow its unencumbered
pool, Fitch projects that unencumbered asset coverage of unsecured
debt will remain weak for the 'BBB-' rating.
Improving Asset Quality
DDR is executing on its strategic plan, which entails owning and
operating market-dominant power centers in select markets with
favorable population demographics and thereby generating consistent
cash flow, while opportunistically engaging in capital recycling.
Portfolio transformation is evidenced by the presence of more
market-dominant power centers, with the average property size
increasing to approximately 320,000 square feet as of June 30, 2016
compared to approximately 190,000 square feet as of Dec. 31, 2008.
In addition, the leased rate improved to 95.7% as of June 30, 2016
from 92.2% in 2008, and average rent per square foot increased to
$14.92 in second quarter 2016 (2Q'16) from $12.34 as of Dec. 31,
2008.
DDR, led by its new CEO and interim Chief Financial Officer,
initiated changes in its investment strategy by accelerating
disposition plans for lower quality assets, and expected sales
should result in an improved credit profile. Net proceeds from
asset sales will be used primarily towards delevering.
Ongoing Portfolio Review and Simplification
DDR segmented the portfolio by examining market and asset factors.
This analysis was predicated on the company's focus on power
centers based on the belief that they have greater scale, a larger
mix of tenants and serve larger trade areas than grocery-anchored
neighborhood shopping centers, which Fitch views favorably.
Currently, DDR's portfolio demographics are weaker than those of
other U.S. shopping center REITs, as measured by population density
and average household income.
Strong Leasing Spreads and Fixed Charge Coverage
Blended leasing spreads on new and renewal leases were 9.1% in 2Q16
following 9.5% growth in 2015. As of June 30, 2016, 2.8% of leases
expire for the remainder of 2016 followed by 12.3% in 2017 and
14.4% in 2018, which should result in the company reporting
stronger same store NOI growth as marks below-market leases
upwards. Consolidated same-store NOI grew by 3.1% in 2Q'16 and 3.1%
in 2015.
Under Fitch's base case whereby the company generates 3% same-store
NOI growth in 2016-2018 (due to positive releasing spreads, minor
uptick in occupancy and annual bumps), fixed charge coverage would
hit the low 3x range in 2018, which would be strong for the 'BBB-'
rating. In a stress case not anticipated by Fitch in which
same-store NOI declines by levels experienced in 2009 to 2010,
fixed-charge coverage would remain in the mid 2x range, which would
remain solid for the 'BBB-' rating. DDR's fixed-charge coverage
ratio was 2.6x for the trailing 12 months ended June 30, 2016, up
from 2.5x for 2015 and 2.4x in 2014. Organic EBITDA growth and
re-development EBITDA growth were the primary contributors to the
improvement.
Secular Retailer Trends Favor Power Centers
DDR has limited tenant concentration. Major tenants are TJX
Companies (3.5% of rental revenues in 2Q'16), Bed Bath & Beyond
(3%), PetSmart (2.9%), Walmart (IDR 'AA'/Outlook Stable at 2.4%),
and Dick's Sporting Goods (2.3%). The top 20 tenants comprise 36%
of 2Q'16 rental revenues, above the peer average. Numerous
retailers are exploring larger footprints, which should bolster
power center demand. Value/convenience retailers continue to grow,
while non-traditional grocers have gained the market share of
traditional retailers, which bodes well for DDR's tenants such as
Walmart.
Proven Access to Capital
DDR is a seasoned issuer of multiple sources of capital. Since
2006, the company has issued approximately $4.4 billion of bonds,
$350 million of preferred stock, and approximately $4.3 billion of
equity via follow-on common offerings and at-the-market program
issuance at a weighted average premium to consensus mean net asset
value of 3.4% according to SNL Financial. In April 2015, DDR recast
its primary $750 million unsecured revolving credit facility,
extending the final maturity date to June 2020, including options,
and reducing the pricing on the facility by 15 basis points to
LIBOR plus 100 basis points. The company also recast its smaller
credit facility to $50 million from $65 million under the same
pricing terms and entered into a $400 million unsecured term loan,
with pricing currently set at LIBOR plus 110 basis points.
Leverage Appropriate for 'BBB-'
Fitch projects that leverage, when excluding the effects of
preferred stock, will be in the mid-6.5x range over the next 12 to
24 months, principally due to asset sales and organic EBITDA
growth, which would be at the stronger end of the range for the
'BBB-' rating. Leverage was 6.7x in 2Q16 (6.8x for the TTM ended
June 30, 2016), down from 7.2x in 2015 and 7.6x in 2014. When
including 50% of preferred stock in total debt, DDR's leverage was
6.9x for the quarter and 7.1x for the TTM ended June 30, 2016.
2017 to 2018 Debt Maturities & Development Negatively Impact
Liquidity
Liquidity coverage is weak at 0.5x for the period July 1, 2016 to
Dec. 31, 2018. The liquidity coverage ratio is weighed down by 2017
and 2018 pro rata debt maturities, which total 14.6% and 13.9% of
total pro rata debt, respectively. Fitch defines liquidity coverage
as sources divided by uses. Liquidity sources include readily
available cash; availability under the company's unsecured
revolving credit facilities and projected retained cash flows from
operating activities. Liquidity uses include pro rata debt
maturities, projected recurring capital expenditures and cost to
complete development through 2018.
The company's AFFO payout ratio was 63.3% in 2Q'16, down from 65.3%
in 2015 and up from 60.2% in 2014. Based on the current payout
ratio, the company retains approximately $120 million annually in
internally generated liquidity.
Cost-to-complete development represented 2% of undepreciated assets
as of June 30, 2016, down from 2.3% as of year-end 2015 and well
below the 3.5% level as of year-end 2007. Overall, redevelopment
should improve asset quality and cash flow growth as DDR generally
targets unlevered cash on cost in excess of 10%.
Low Unencumbered Asset Coverage
As of June 30, 2016, DDR's unencumbered assets (defined as
unencumbered NOI divided by a stressed 8% capitalization rate)
covered net unsecured debt by 1.7x, which is low for the 'BBB-'
rating. Unencumbered asset coverage has trended around 1.6x-1.8x
over the past several years. DDR continues to add quality assets to
the unencumbered pool and the quality of the unencumbered pool is
similar to that of the encumbered pool.
Management Turnover a Concern
In July 2016, David Oakes was terminated as CEO of DDR Corp. DDR
Board member Thomas August was named President and Chief Executive
Officer, making him the fourth CEO since 2009. While Fitch
acknowledges Mr. August's extensive REIT experience, he has no
prior experience running a retail REIT. Christa Vesy, DDR's current
CAO, was named interim CFO, but the search for a permanent CFO
continues. Additionally, the company is searching for a permanent
Chief Investment Officer. Should management be unable to execute on
strategy, it could result in negative rating momentum.
Preferred Stock Notching
The two-notch differential between DDR's IDR and its preferred
stock rating is consistent with Fitch's criteria for corporate
entities with an IDR of 'BBB-'. Based on Fitch's criteria report,
'Treatment and Notching of Hybrids in Nonfinancial Corporate and
REIT Credit Analysis,' dated Feb. 29, 2016, the company's preferred
stock is deeply subordinated and has loss absorption elements that
would likely result in poor recoveries in the event of a corporate
default.
KEY ASSUMPTIONS
Fitch's key assumptions within the rating case for DDR include:
-- 3% same-store NOI growth in 2016-2018;
-- G&A to decline slightly relative to total revenues as the
company endeavors to focus on fewer larger assets via
expected asset sales;
-- $800 million of dispositions in 2016 and $670 million in
2017, followed by $100 million total in 2018. Net proceeds
from asset sales will be used primarily towards delevering;
-- $225 million of acquisitions and development each year from
2016-2018;
-- Debt repayment with the issuance of new unsecured bonds;
-- Recurring capex divided by recurring operating EBITDA in the
7% to 8% range;
-- Fitch assumes no equity issuance in our rating case. Equity
issuance is at management's discretion, and DDR's common
shares are currently trading at an 8.2% discount to
consensus mean net asset value according to SNL Financial.
RATING SENSITIVITIES
The following factors may result in positive momentum in the
ratings and/or Rating Outlook:
-- Fitch's expectation of leverage sustaining below 6.5x is the
primary factor for positive momentum on the ratings and/or
Outlook (June 30, 2016 TTM leverage was 6.8x);
-- Fitch's expectation of growth in the size and quality of the
unencumbered pool with unencumbered assets (unencumbered NOI
divided by a stressed capitalization rate of 8%) covering
net unsecured debt by 2.5x (this metric is 1.7x as of June
30, 2016);
-- Fitch's expectation of fixed-charge coverage sustaining
above 2.3x is a less meaningful ratings sensitivity for
positive momentum as it is less consistent through interest
rate cycles (TTM fixed-charge coverage is 2.6x).
The following factors may result in negative momentum in the
ratings and/or Rating Outlook:
-- Fitch's expectation of leverage sustaining above 7.5x;
-- Fitch's expectation of fixed-charge coverage sustaining
below 2.0x;
-- Base-case liquidity coverage sustaining below 1.0x (this
ratio is 0.5x for July 1, 2016 to Dec. 31, 2018);
-- Unencumbered assets to net unsecured debt sustaining below
2.0x;
-- Continued management turnover, which reduces market
confidence on the company's ability to execute on strategy.
FULL LIST OF RATING ACTIONS
Fitch has affirmed the following ratings:
DDR Corp.
-- IDR at 'BBB-';
-- Unsecured revolving credit facilities at 'BBB-';
-- Unsecured term loan at 'BBB-';
-- Senior unsecured notes at 'BBB-';
-- Senior unsecured convertible notes at 'BBB-';
-- Preferred stock at 'BB'.
The Rating Outlook is Stable.
DEER MEADOWS: Taps Stephen Boyke as Attorney
--------------------------------------------
Deer Meadows, LLC, seeks authorization from the U.S. Bankruptcy
Court for the District of Oregon to employ the Law Office of
Stephen T. Boyke as attorney.
The Debtor requires the Firm to:
(a) give the Debtor legal advice with respect to its powers
and duties as debtor-in-possession in the operation of its
business;
(b) institute such adversary proceedings or contested matters
as are necessary in the case;
(c) represent the Debtor generally in the proceedings and to
propose on behalf of Debtor as debtor-in-possession necessary
applications, answers, orders, reports, disclosure statements,
plans and other legal papers; and,
(d) perform all other legal services for the
Debtor-in-Possession or to employ an attorney for such professional
services.
The Firm will be paid at these hourly rates:
Stephen T. Boyke $350.00
Paralegal $125.00
Project Assistant $60.00
The Firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
The Debtor paid Mr. Boyke $33,000 on September 26, 2016. Of this
amount, $28,000 is an earned on receipt retainer for legal services
and the $1,717 filing fee in the case. The remaining $5,000 has
been deposited in the firm's trust account and is specifically
earmarked for a retainer for an appraiser of the Debtor's real
property and business. The original source of the funds was a loan
from Kristin Harder's relatives to the Debtor and was secured by a
trust deed on real property owned by the Debtor.
Mr. Boyke 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:
Stephen T. Boyke, Esq.
LAW OFFICE OF STEPHEN T. BOYKE
806 SW Broadway Ste 1200
Portland, OR 97201
Tel.: (503) 227-0417
About Deer Meadows
Deer Meadows, LLC, filed a chapter 11 petition (Bankr. D. Ore. Case
No. 16-33768) on Sept. 29, 2016. The Debtor is represented by
Stephen T. Boyke, Esq., at the Law Office of Stephen T. Boyke.
DENNIS RAY JOHNSON: DOJ Watchdog Seeks Ch. 11 Trustee Appointment
-----------------------------------------------------------------
The United States Trustee, Judy A. Robbins, moves the United States
Bankruptcy Court for the Southern District of West Virginia to
appoint a Chapter 11 Trustee for the Debtor, Dennis Ray Johnson,
together with the other various rental real estate entities and
coal associated operations owned by Dennis Ray Johnson.
Mr. Johnson is a businessman with ownership interests in at least
10 entities. He operates various rental real estate entities and
coal associated operations. Prior to his filing a Chapter 11
petition on May 9, 2016, People's Bank filed a state court action
for the appointment of a receiver against Dennis Johnson, Denise
Johnson, Mark Pinson and 10 entities in which Mr. Johnson held an
ownership interest. On May 18, 2016, the Circuit Court Judge
entered an Order appointing a special receiver in certain of Mr.
Johnson's entities. A substitute special receiver, Zachary
Burkons, was ultimately appointed on August 15, 2016. The
successor special receiver filed Chapter 11 petitions for
Appalachian Mining and Reclamation, LLC, Green Coal, LLC, Joint
Venture Development, LLC, Producers Coal, Inc., Producers Land,
LLC, and Redbud Dock, LLC.
On May 18, 2016, Mr. Johnson filed voluntary chapter 11 petitions
for other business entities in which he has an interest. Those
cases are: Moussie Processing, LLC, Sabbatical, Inc., DJWV1, LLC,
Elkview Reclamation and Processing, LLC, and Little Kentucky Elk,
LLC. On August 12, 2016, Mr. Johnson filed a Chapter 11 petition
for The Silo Golf Course, LLC.
There are three pending involuntary chapter 11 cases against
Southern Marine Terminal, LLC, DJWV2, LLC, and Southern Marine
Services, LLC.
According to the U.S. Trustee, the only cases in which Schedules of
Assets and Liabilities and Statements of Financial Affairs have
been filed are Mr. Johnson's individual case and The Silo Golf
Course, LLC's case. Despite the requests from the U.S. Trustee for
schedules and a Statement of Financial Affairs, no schedules have
been filed in the other cases.
The U.S. Trustee asserts that there has been a failure of current
management to file schedules, Statements of Financial Affairs,
banking information, monthly financial reports, and other
information requested by parties in interest. Because of the
failure to file the documents that are required by the Bankruptcy
Code and the bankruptcy rules, the administration of the cases has
been thwarted such that creditors may be harmed without further
remedy, the U.S. Trustee further asserts.
The U.S. Trustee says any of the Debtor's failures would be grounds
for a dismissal of the cases. Dismissal, however, does not appear
to be in the best interest of the parties, the U.S. Trustee tells
the Court. The appointment of a chapter 11 trustee is in the best
interests of creditors, the U.S. Trustee says. In the case, a
trustee can determine which cases have assets and which cases
should be converted or dismissed. There are, according to the Bank,
potential causes of action that creditors may have against the
management. Therefore the U.S. Trustee moved that an independent
fiduciary is the only remedy for creditors in the cases.
About Dennis Ray Johnson
Dennis Ray Johnson, II, filed a Chapter 11 petition (Bankr. S.D.W.
Va. Case No. 16-30227) on May 9, 2016, and is Represented by
Christopher S. Smith, Esq., at Hoyer, Hoyer & Smith, PLLC.
Mr. Johnson is a businessman with ownership interests in at least
10 entities. He operates various rental real estate entities and
coal associated operations. Mr. Johnson is a member of each of the
following debtor companies -- Appalachian Mining and Reclamation,
LLC, DJWV1, LLC, DJWV2, LLC, Elkview Reclamation and Processing,
LLC, Green Coal, LLC, Joint Venture Development, LLC, Little
Kentucky Elk, LLC, Moussie Processing, LLC, Producer’s Coal,
Inc., Producer’s Land, LLC, Redbud Dock, LLC, Southern Marine
Services, LLC, Southern Marine Terminal, LLC, and The Silo Golf
Course, LLC -- and has filed a motion asking the Bankruptcy Court
to jointly administer the bankruptcy cases. Mr. Johnson is also a
guarantor of the debt for most of the companies.
EDGARDO ACEVEDO BADILLO: Ch. 11 Plan Hearing Slated for Nov. 3
--------------------------------------------------------------
Judge Edward A. Godoy has conditionally approved the disclosure
statement describing the Chapter 11 plan dated Sept. 25, 2016,
filed by Edgardo Acevedo Badillo and Jennifer Enid Jimenez.
The Debtors and parties in interest may now solicit votes on the
debtor's Plan of Reorganization pursuant to 11 U.S.C. Section
1125.
Acceptances or rejections of the Plan may be filed in writing by
the holders of all claims on/or before 14 days prior to the date of
the hearing on confirmation of the Plan.
Any objection to the final approval of the Disclosure Statement
and/or the confirmation of the Plan shall be filed on/or before 14
days prior to the date of the hearing on confirmation of the Plan.
The Debtor will file with the Court a statement setting forth
compliance with each requirement in section 1129, the list of
acceptances and rejections and the computation of the same, within
seven working days before the hearing on confirmation.
A hearing for the consideration of the final approval of the
Disclosure Statement and the confirmation of the Plan and of such
objections as may be made to either will be held on Nov. 3, 2016 at
9:30 a.m. at the U.S. Bankruptcy Court, Southwestern Divisional
Office, MCS Building, Second Floor, 880 Tito Castro Avenue, Ponce,
Puerto Rico.
The Chapter 11 Plan
As reported in the TCR, Edgardo Acevedo Badillo and Jennifer Enid
Jimenez filed with the U.S. Bankruptcy Court for the District of
Puerto Rico a disclosure statement describing their Chapter 11 Plan
dated Sept. 25, 2016.
General unsecured claims (Class G) total $129,169. Class G
claimants will receive from the Debtor a non-negotiable, interest
bearing at 3.25% annually, promissory note dated as of the
Effective Date. Creditors in this class shall receive a total
repayment of 6% of their claimed or listed debt which equals to
$9,117 to be paid pro rata to all allowed claimants under this
class. Unsecured Creditors will receive monthly payment of $75.98
to be distributed pro rata among them, for a 10-year term. The
first payment will be made on June 1, 2017.
If Class G votes to accept the Plan, the total payment to the
holders of Class F claims will be increased to 10%, payable at 3.5%
interest bearing note to be tendered upon the effective date
payable in 120 monthly installments from the effective date of the
plan.
A full-text copy of the Disclosure Statement is available at:
http://bankrupt.com/misc/prb15-05928-87.pdf
About Edgardo Badillo
Edgardo Acevedo Badillo and Jennifer Enid Jimenez Ramos sought
protection under Chapter 11 of the Bankruptcy Code (Bankr. D.P.R.
Case No. 15-05928) on Aug. 3, 2015. The Debtor is represented by
Miriam S. Lozada Ramirez, Esq.
FELD LIMITED: Wants Plan Filing Period Extended to Jan. 20
----------------------------------------------------------
Feld Limited Partnership asks the U.S. Bankruptcy Court for the
Eastern District of Wisconsin to extend its exclusive period for
filing a chapter 11 plan of reorganization to January 20, 2017.
Absent an extension, the Debtor's exclusive period for filing a
chapter 11 plan would have expired on October 3, 2016.
The Debtor believes that it would be reasonable, under the
circumstances, to extend the time in which to file a Disclosure
Statement and Plan for approximately four months, in order to
continue to market its Madison Street Property, deal with existing
interested parties, provide proposals pursuant to the certain
Requests for Proposal which have been submitted, and generally
continue to market the sale or lease of the properties.
The Debtor tells the Court that it has on hand, $231,408.72 in its
DIP account as of September 28, 2016, and $295,722.75 in the Edward
Jones investment account. The Debtor asserts that there is not
only an equity cushion in the real estate, but that the funds on
hand justify extending the period of time before the Debtor should
have to file a Disclosure Statement and Plan.
The Debtor projects that, given the market rates indicated by the
activity in the market, renting simply one-third of the Madison
Street building at market rent would provide the basis for the
re-amortization of its debt to Associated Bank and provide the
Debtor with a positive cash flow. The Debtor contends that a
combination of renting a portion of the Madison Street property and
selling either its Riverside Drive property or its Monroe property,
would make a Plan more feasible by providing additional cash flow
and lowered debt service.
The Debtor believes that a balance of the equity and liquidity on
the one hand, with the likely prospects for the sale or leasing of
the available properties in the near term mitigate toward extending
the time to file the Disclosure Statement and Plan.
About Feld Limited Partnership
Feld Limited Partnership, engaged in the business of leasing and
managing real properties in the Madison and Green Bay areas, filed
a Chapter 11 bankruptcy petition (Bank. E.D. Wisc. Case No.
16-20826) on Feb. 3, 2016. The petition was signed by Dennis J.
Feld, general partner. The Debtor is represented by Paul G.
Swanson, Esq., at Steinhibler, Swanson, Mares, Marone & McDermott.
The Debtor disclosed total assets of $15.17 million and total debts
of $7.50 million.
FLOUR CITY BAGELS: Wants Dec. 31 Plan Exclusivity Extension
------------------------------------------------------------
Flour City Bagels, LLC asks the U.S. Bankruptcy Court for the
Western District of New York to extend its exclusive periods for
filing a chapter 11 plan and soliciting acceptances to the plan, to
December 31, 2016 and February 28, 2017, respectively.
The Debtor currently has until October 14, 2016, to file its
chapter 11 plan, and until December 15, 2016, to solicit
acceptances to its plan.
The Debtor tells the Court that it seeks the extensions to avoind
the necessity of having to formulate a chapter 11 plan prematurely
and to ensure that its chapter 11 plan best addresses the interests
of the Debtor, its creditors and estate.
The Debtor relates its Sale Motion, which sought authorization for
the sale of substantially all of the Debtor's assets to Canal
Mezzanine Partners II, LP, was denied by the Court. The Debtor
further relates that as a result of the Court's denial, it
continues to engage in discussions with counsel for the secured
lenders, Canal Mezzanine Partners II, the Official Committee of
Unsecured Creditors, and other interested parties concerning a
potential sale of the Debtor's assets. The Debtor adds that the
discussions may include a mediation session to be attended by the
parties, and that it continues to work toward the development of a
disclosure statement and plan.
The Debtor notes that the Court set July 29, 2016 as the deadline
for filing administrative claims and set September 16, 2016 as the
bar date for filing proofs of claim in the case. The Debtor
contends that it must accurately evaluate the universe of claims
against its estate before it can finalize a chapter 11 plan or
prepare a disclosure statement containing adequate information.
About Flour City Bagels, LLC.
Headquartered in Fairport, New York, Flour City Bagels, LLC,
operates 32 bakeries that serve "New York Style" bagels, coffee,
drinks, soups, salads, sandwiches, fresh fruit, and a variety of
other related items. In 1993, it opened its commissary in
Rochester, at which it produces bagels for sale at all of its 32
bakeries. It employs 425 people.
Flour City Bagels sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. W.D.N.Y. Case No. 16-20213) on March 2,
2016, estimating both assets and debt in the range of $10 million
to $50 million. Kevin Coyne, the manager, signed the petition.
Judge Paul R. Warren is assigned to the case.
The Debtor is represented by Stephen A. Donato, Esq., and Camille
W. Hill, Esq., at Bond, Schoeneck & King, PLLC, and Harry W.
Greenfield, Esq., Jeffrey Toole, Esq., and Heather E. Heberlein,
Esq., at Buckley King.
The Debtor retained Phoenix Management Services, LLC as financial
advisor; Phoenix Capital Resources as investment banker; Insero &
Co. CPAs, LLP as accounting services provider; and Kittel Branagan
& Sargent as tax consultant.
The Official Committee of Unsecured Creditors of Flour City Bagels,
LLC, retained Kane Russell Coleman & Logan PC as counsel, Gordorn &
Schaal, LLP as local counsel, and Corporate Recovery Associates,
LLC, as business and financial advisor for the Committee.
GARDEN OF EDEN: Taps Platzer, Swergold & Levine as Legal Counsel
----------------------------------------------------------------
Garden of Eden Enterprises, Inc. and its affiliates Broadway
Specialty Food, Inc., Coskun Brothers Specialty Food, Inc., and
Garden of Eden Gourmet Inc., the Debtors, seek authorization from
the U.S. Bankruptcy Court for the Southern District of New York to
employ Platzer, Swergold, Levine, Goldberg, Katz & Jaslow, LLP as
its counsel.
The Debtors desire to employ counsel to perform legal services in
this case. The Debtors requires Platzer to perform certain services
including but not limited to the following:
a. assist and advise the Debtors regarding the administration
of these cases;
b. represent the Debtors before the Court and advise the
Debtors of pending litigation, hearings, motions, and of
the decisions of the Court;
c. assist and analyze all applications, orders and motions
filed with the Court by third parties in these cases and
advise the Debtors;
d. attend all hearings conducted pursuant to § 341(a) of the
Bankruptcy Code and represent the Debtors at all
examinations;
e. communicate with creditors;
f. assist the Debtors in preparing applications and orders in
support of positions taken by the Debtor, as well as
prepare witnesses and review documents in this regard;
g. confer with any accountants and consultants retained by the
Debtors and/or any other party-in-interest;
h. assist the Debtors in its negotiations with creditors or
third parties concerning the terms of any proposed plan(s)
of reorganization;
i. prepare and draft plan(s) of reorganization and disclosure
statement(s); and
j. assist the Debtor in performing such other services as may
be in the interest of the Debtors and perform all other
services required by the Debtors.
Platzer will be paid at these hourly rates:
Scott K. Levine $605.00 per hour
Clifford A. Katz $575.00 per hour
Andrew S. Muller $505.00 per hour
Teresa Sadutto-Carley $405.00 per hour
Paralegals $195.00 per hour
It is Platzer's policy to charge its clients in all areas of
practice for all other expenses incurred in connection with the
client's case. The expenses charged to clients include, among other
things, telephone, facsimile, toll and other charges, mail and
express mail charges, special or hand delivery charges, document
retrieval, photocopying charges, travel expenses, computerized
research, transcription costs, as well as non-ordinary overhead
expenses in a manner and at rates consistent with charges in
general to Platzer's other clients.
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.
Platzer can be reached at:
Scott K. Levine, Esq.,
Clifford A. Katz, Esq.
Teresa Sadutto-Carley, Esq.
PLATZER, SWERGOLD, LEVINE,
GOLDBERG, KATZ & JASLOW, LLP
475 Park Avenue South, 18th Floor
New York, New York 10016
Telephone: (212) 593 3000
About Garden of Eden Enterprises
Garden of Eden Enterprises, Inc., Broadway Specialty Food, Inc., ,
Coskun Brothers Specialty, and Garden of Eden Gourmet Inc. filed
chapter 11 petitions (Bankr. S.D.N.Y. Case Nos. 16-12488,
16-12490, 16-12491, 16-12492, respectively) on Aug. 29, 2016. The
petitions were signed by Mustafa Coskun, president.
The cases are assigned to Judge James L. Garrity Jr.
Doing business as Garden of Eden, the Debtors operate three
upscale
full-service specialty-food retail stores at leased premises in
New
York. Debtor Garden of Eden Enterprises is the parent operating
company of the Debtors, and maintains its place of business at 720
Anderson Avenue, Cliffside Park, New Jersey 07010.
Clifford A. Katz, Esq., and Scott K. Levine, Esq., of Platzer,
Swergold, Levine, Goldberg, Katz & Jaslow, LLP, serve as counsel
to
the Debtors.
At the time of filing, the Debtors disclosed $8.05 million in
assets and $8.29 million in liabilities. A copy of the Debtors'
list of 20 largest unsecured creditors is available for free at:
http://bankrupt.com/misc/nysb16-12488.pdf
U.S. Trustee William K. Harrington on Sept. 15, 2016, appointed
three creditors to serve on the official committee of unsecured
creditors of Garden of Eden Enterprises, Inc., et al.
GILBERTO P. REYES: To Present Plan for Confirmation on Dec. 7
-------------------------------------------------------------
Judge Brenda Moody Whinery granted approval to the First Amended
Disclosure Statement of debtors Gilberto P. Reyes and Erika Reyes
and set a hearing on Dec. 7, 2016 at 10:00 a.m., to consider
confirmation of the Plan.
The last day for filing with the Court written acceptances or
rejections of the Plan is fixed at five business days prior to the
hearing date set for confirmation of the Plan. Ballots will be
mailed to the proponent of the plan in care of:
Eric Slocum Sparks, Esq.
3505 North Campbell Avenue, #501
Tucson, Arizona 85719
The last day for filing and serving, pursuant to Bankruptcy Rule
3020(b)(1), written objections to confirmation of the Plan is fixed
at five business days prior to the hearing date set for
confirmation of the Plan.
The hearing date is the last date to file a complaint objecting to
the discharge of the Debtor pursuant to 11 U.S.C. Sections 1141 &
727.
A copy of the Disclosure Statement Order is available at:
http://bankrupt.com/misc/azb15-12013_DS_Ord_G_Reyes.pdf
As reported in the TCR, Gilberto P. Reyes and Erika Reyes filed a
proposed plan of reorganization that provides that unsecured
creditors, with an estimated amount of $44,540, will be paid the
sum of $200 on a quarterly basis, pro rata, from the Debtors'
disposable income, to be paid on the last day of each quarter,
starting with the quarter ending after the Effective Date and
anticipated to be Sept. 30, 2016, and continuing each quarter
thereinafter for five years. A copy of the First Amended
Disclosure Statement for the First Amended Plan of
Reorganization dated Sept. 21, 2016, is available at:
http://bankrupt.com/misc/azb15-12013-116.pdf
Gilberto P. Reyes and Erika Reyes filed for Chapter 11 bankruptcy
protection (Bankr. D. Ariz. Case No. 15-12013) on Sept. 18, 2015.
Eric Slocum Sparks, Esq., at the Law Offices of Eric Slocum Sparks,
P.C., serves as the Debtors' counsel.
GO YE VILLAGE: Disclosure Statement Hearing on Nov. 9
-----------------------------------------------------
A Disclosure Statement and Plan of Reorganization under Chapter 11
of the Bankruptcy Code were filed by debtor Go Ye Village, Inc., on
Sept. 26, 2016. Judge Tom R. Cornish set Nov. 9, 2016, at 9:00
a.m., as the hearing to consider approval of the Disclosure
Statement. The last date to file and serve written objections to
the Disclosure Statement pursuant to Rule 3017(a) of the Federal
Rules of Bankruptcy Procedure is Oct. 28, 2016. The United States
Trustee will file a response to the Disclosure Statement by Oct.
28, 2016. The deadline to file Complaint Objecting to Discharge of
the Debtor is the first date set for hearing on confirmation of
Plan.
About Go Ye Village
Go Ye Village, Inc., filed a Chapter 11 bankruptcy petition (Bankr.
E.D. Okla Case No. 15-81287) on Nov. 30, 2015. The petition was
signed by Maurice D. Turney as president. The Debtor disclosed
total assets of $24.48 million and total debt of $36.18 million.
Doerner, Saunders, Daniel & Anderson, LLP, serves as the Debtor's
counsel. Judge Tom R. Cornish is assigned to the case.
The U.S. Trustee has appointed a patient care ombudsman in the
Debtors' bankruptcy case.
The U.S. Trustee for Region 20 formed an Official Committee of
Unsecured Creditors. Members of the Committee are (1) Doris
Barbee, (2) Russell & Mary Megee, (3) Randle & Joyce Peterson, (4)
Andrew Turner, (5) Dennis W. & Ann Rives Smith, (6) Bill Young, (7)
Thomas F. Henstock, (8) Van Ferguson, (9) Robert & Donna Rice, and
(10) Charlotte Kerth.
GOLFSMITH INTERNATIONAL: Worldwide Golf Eyes U.S. Assets
--------------------------------------------------------
The American Bankruptcy Institute, citing Jessica DiNapoli of
Reuters, reported that Worldwide Golf Shops is exploring an offer
for the U.S. business of bankrupt chain Golfsmith International
Holdings Inc, according to people familiar with the matter, as the
golf retail sector grapples with the sport's waning popularity.
According to the report, Golfsmith suffered in part because of the
decline of the so-called Tiger Woods phenomenon. When the golf
superstar's career began to fade, some of the many young fans he
attracted to the sport also lost interest, the report related.
Bids for Golfsmith's U.S. business are due on Oct. 17, and an
auction is scheduled for two days later, with the goal of closing a
sale before the start of the holiday season, the report further
related, citing court documents. Golfsmith is already shutting
down some stores to save money, the report said.
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, 2016,
appointed seven creditors to serve on the official committee of
unsecured creditors.
GREAT BASIN: Had 17.01M Common Shares Outstanding as of Oct. 7
--------------------------------------------------------------
On Oct. 3-7, 2016 certain holders of the 2015 Notes were issued
shares of Great Basin Scientific, Inc.'s common stock pursuant to
Section 3(a)(9) of the United States Securities Act of 1933, (as
amended) in connection with the pre-installment amount converted
for the amortization date of Oct. 31, 2016. In connection with the
pre-installments, the Company issued 3,540,602 shares of common
stock upon the conversion of $6,990,659 principal amount of 2015
Notes at a conversion price of $1.98 per share.
On Oct. 3-7, certain holders of the 2015 Notes were issued shares
of the Company's common stock pursuant to Section 3(a)(9) of the
United States Securities Act of 1933, (as amended) in connection
with the voluntary reduction under the terms of the exchange
agreement dated Oct. 2, 2016 using the alternate conversion price.
In connection with the voluntary reduction, the Company issued
10,952,666 shares of common stock upon the conversion of $2,671,158
principal amount of 2015 Notes at a conversion price between $1.43
and $0.16 per share.
As of Oct. 7, 2016, a total principal amount of $10,674,278 of the
2015 Notes has been permanently converted into shares of common
stock and a principal amount of $7,571,546 has been converted that
is subject to deferrals. $3,854,176 principal remains to be
converted, subject to deferrals. A total of $14.8 million of the
proceeds from the 2015 Notes has been released to the Company
including $4.6 million at closing and $10.2 million from the
restricted cash accounts. $3.6 million remains in the restricted
accounts to be released to the Company on Nov. 1, 2016, per the
terms of the exchange agreement dated Oct. 2, 2016.
The Company previously filed an 8-K on Sept. 30, 2016, and reported
2,520,215 shares outstanding therefore as of Oct. 7, 2016, there
are 17,013,483 shares of common stock issued and outstanding.
In connection with the voluntary reduction using the alternate
conversion price, the exercise prices of certain of the Company's
issued and outstanding securities were automatically adjusted to
take into account the alternate conversion price of the 2015 Notes.
The exercise prices of the following securities were adjusted as
follows.
Class A and Class B Warrants
As of Oct. 7, 2016, the Company had outstanding Class A Warrants to
purchase 52 shares and Class B Warrants to purchase 33 shares of
common stock of the Company. The Class A and Class B Warrants
include a provision which provides that the exercise price of the
Class A and Class B Warrants will be adjusted in connection with
certain equity issuances by the Company. The consummation of the
Conversions triggers an adjustment to the exercise price of the
Class A and Class B Warrants. Therefore, during the period of
October 3 through Oct. 7, 2016, the exercise price for the Class A
and Class B Warrants was adjusted from $1.87 to $0.16 per share of
common stock.
Common Stock Warrants
As of Oct. 7, 2016, the Company had outstanding certain common
stock warrants to purchase 2 shares of common stock of the Company.
As a result of the Conversions, during the period of October 3
through Oct. 7, 2016, the exercise price for certain Common
Warrants was adjusted from $1.87 to $0.16 per share of common
stock.
Series B Warrants
As of Oct. 7, 2016, the Company has outstanding Series B Warrants
to purchase 36 shares of common stock of the Company. The Series B
Warrants include a provision which provides that the exercise
prices of the Series B Warrants will be adjusted in connection with
certain equity issuances by the Company. The consummation of the
Conversions triggers an adjustment to the exercise price of the
Series B Warrants. Therefore, during the period of October 3
through Oct. 7, 2016, the exercise price for the Series B Warrants
was adjusted from $280,315 to $147,944 per share of common stock.
Series G Warrants
As of Sept. 30, 2016, the Company had outstanding Series G Warrants
to purchase 38,438 shares of common stock of the Company. The
Series G Warrants include a provision which provides that the
exercise price of the Series G Warrants will be adjusted in
connection with certain equity issuances by the Company. The
consummation of the Conversions triggers an adjustment to the
exercise price of the Series G Warrants. Therefore, during the
period of October 3 through October 7, the exercise price for the
Series G Warrants was adjusted from $1.87 to $0.16 per share of
common stock.
About Great Basin
Great Basin Scientific is a molecular diagnostic testing company
focused on the development and commercialization of its patented,
molecular diagnostic platform designed to test for infectious
disease, especially hospital-acquired infections. The Company
believes that small to medium sized hospital laboratories, those
under 400 beds, are in need of simpler and more affordable
molecular diagnostic testing methods. The Company markets a system
that combines both affordability and ease-of-use, when compared to
other commercially available molecular testing methods, which the
Company believes will accelerate the adoption of molecular testing
in small to medium sized hospitals. The Company's system includes
an analyzer, which it provides for its customers' use without
charge in the United States, and a diagnostic cartridge, which the
Company sells to its customers.
Great Basin reported a net loss of $57.9 million in 2015 following
a net loss of $21.7 million in 2014.
As of June 30, 2016, Great Basin had $26.09 million in total
assets, $87.07 million in total liabilities and a total
stockholders' deficit of $60.98 million.
Mantyla McReynolds, LLC, in Salt Lake City, Utah, issued a "going
concern" opinion in its report on the consolidated financial
statements for the year ended Dec. 31, 2015, citing that the
Company has incurred substantial losses from operations causing
negative working capital and negative operating cash flows. These
issues raise substantial doubt about its ability to continue as a
going concern.
GULF CHEMICAL: Has Until Jan. 10 to file Chapter 11 Plan
--------------------------------------------------------
Judge Jeffrey A. Deller of the U.S. Bankruptcy Court for the
Western District of Pennsylvania extended Gulf Chemical &
Metallurgical Corporation, et. al.'s exclusive periods to file a
chapter 11 plan and solicit acceptances to the plan, to January 10,
2017 and March 13, 2017, respectively.
About Gulf Chemical & Metallurgical Corporation
Bear Metallurgical Co. and Gulf Chemical & Metallurgical Corp.
filed chapter 11 petitions (Bankr. W. D. Pa. Lead Case No.
16-22192) on June 14, 2016.
The petitions were signed by Eric Caridroit, chief executive
officer. The cases are assigned to Judge Jeffery A. Deller.
At the time of the filing, Bear Metallurgical estimated assets and
debts to be between $1 million and $10 million. Gulf Chemical
estimated assets and debts to be between $100 million and $500
million.
The Office of the United States Trustee appointed an official
committee of unsecured creditors on June 30, 2016. The Committee
retained Fox Rothschild LLP and Lowenstein Sandler LLP as counsel;
and Province, Inc. as financial advisor.
Comilog Holdings, Gulf's parent company and Bear's indirect parent
company, is represented by John M. Steiner, Esq. and Patrick W.
Carothers, Esq., at Leech Tishman Fuscaldo & Lampl, LLC.
GULFMARK OFFSHORE: BlackRock Owns 2.7% of Class A Shares
--------------------------------------------------------
In an amended Schedule 13G filed with the Securities and Exchange
Commission, BlackRock, Inc. disclosed that as of Sept. 30, 2016,
it beneficially owns 713,779 shares of class A common stock of
Gulfmark Offshore Inc. representing 2.7 percent of the shares
outstanding. A full-text copy of the regulatory filing is
available for free at https://is.gd/XzvXFT
About Gulfmark
GulfMark Offshore, Inc., a Delaware corporation, was incorporated
in 1996. The Company provides offshore marine support and
transportation services primarily to companies involved in the
offshore exploration and production of oil and natural gas. The
Company's vessels transport materials, supplies and personnel to
offshore facilities, and also move and position drilling and
production facilities. The majority of our operations are
conducted in the North Sea, offshore Southeast Asia and offshore
the Americas. The Company currently operates a fleet of 73 owned
or managed offshore supply vessels, or OSVs, in the following
regions: 30 vessels in the North Sea, 13 vessels offshore Southeast
Asia, and 30 vessels offshore the Americas. The Company's fleet is
one of the world's youngest, largest and most geographically
balanced, high specification OSV fleets. The Company's owned
vessels have an average age of approximately nine years.
Gulfmark reported a net loss of $215 million in 2015 following net
income of $62.4 million in 2014.
As of June 30, 2016, Gulfmark had $1.12 billion in total assets,
$587 million in total liabilities, and $541 million in total
stockholders' equity.
* * *
As reported by the TCR on March 15, 2016, Standard & Poor's Ratings
Services lowered its corporate credit rating on Houston-based,
marine transportation services company GulfMark Offshore Inc. to
'CCC' from 'B-'.
The TCR also reported on Feb. 26, 2016, that Moody's Investors
Service downgraded GulfMark Offshore Inc.'s (GulfMark) Corporate
Family Rating (CFR) to Caa3 from B3, Probability of Default Rating
(PDR) to Caa3-PD from B3-PD, and senior unsecured notes to Ca from
Caa1.
HALSEY ST. MANAGEMENT: Employs Vogel Bach as Counsel
----------------------------------------------------
Halsey St. Management B. Corp. seeks authorization from the U.S.
Bankruptcy Court for the Eastern District of New York to employ
Vogel Bach & Horn, LLP, as counsel.
The Debtor requires Vogel Bach to:
(a) provide the Debtor with advice and prepare all necessary
documents regarding debt restructuring, bankruptcy and asset
disposition;
(b) take all necessary actions to protect and preserve the
Debtor's estate during the pendency of the Chapter 11 case;
(c) prepare on behalf of the Debtor, as debtor-in-possession,
all necessary motions, applications, answers, orders, reports and
prepare in connection with the administration of the Chapter 11
case;
(d) counsel the Debtor with regard to its rights and
obligations as debtor-in-possession;
(e) appear in the Court to protect the interests of the
Debtor; and,
(f) perform all other legal services for the Debtor which may
be necessary and proper in all these proceedings and in furtherance
of the Debtor's operations.
Vogel Bach will be paid at an hourly rate of $225 and will be
reimbursed for the actual and necessary expenses incurred.
Prior to the filing of the case, Vogel Bach received a retainer of
$2,500.
Eric H. Horn, Esq., member of Vogel Bach, assured the Court that
the firm is a "disinterested person" as the term is defined in
Section 101(14) of the Bankruptcy Code and does not represent any
interest adverse to the Debtors and their estates.
Vogel Bach can be reached at:
Eric H. Horn, Esq.
VOGEL BACH & HORN, LLP
1441 Broadway, 5th Floor
New York, NY 10018
Tel.: 201-562-2095
Fax: 646-607-2075
Email: ehorn@vogelbachpc.com
About Halsey St. Management B Corp.
Halsey St. Management B Corp. filed a Chapter 11 petition (Bankr.
E.D. N.Y. Case No.: 16-41970) on May 5, 2016, and is represented by
Eric H Horn, Esq., in New York, New York.
At the time of filing, the Debtor had $1 million to $10 million in
estimated assets and $1 million to $10 million in estimated
liabilities.
The petition was signed by Michael Fernandez, officer.
A list of the Debtor's four unsecured creditors is available for
free at http://bankrupt.com/misc/nyeb16-41970.pdf
HERCULES OFFSHORE: Wants Plan Filing Period Extended to Jan. 3
--------------------------------------------------------------
Hercules Offshore, Inc. and its affiliated Debtors ask the U.S.
Bankruptcy Court for the District of Delaware to extend their
exclusive periods to file a chapter 11 plan or plans and solicit
acceptances to the plan or plans, through January 3, 2017 and March
6, 2017, respectively.
The Debtors filed their Joint Prepackaged Chapter 11 Plan on
September 15, 2016. The Plan reflects a settlement reached in
connection with the Mediation among the Debtors and the ad hoc
group of certain of the Debtors' prepetition first lien lenders.
During the Confirmation Hearing, the Court set a deadline of
October 14, 2016 for the Debtors, the Ad Hoc Group, and the
statutory committee of equity security holders, or Equity
Committee, to submit post-trial briefs with respect to confirmation
of the Plan.
Absent an extension, the Debtor's Exclusive Filing Period would
have expired on October 3, 2016. The Debtor's Exclusive
Solicitation Period is set to expire on December 2, 2016.
The Debtors anticipate that all applciable parties will be filing
post-trial briefs by the deadline set by the Court. The Debtors
expect to continue their efforts to resolve the remaining
objections of the Equity Committee in order to obtain confirmation
of a fully consensual Plan.
The Debtor submit that they have administered the chapter 11 cases
in an efficient and expeditious manner for the benefit of all
stakeholders. The Debtors contend that the requested extension of
the Exclusive Periods will permit the Debtors to continue that
process and prevent unnecessary disruption and any attempts to
derail the significant progress made in the chapter 11 cases as the
Debtors move toward exiting chapter 11.
About Hercules Offshore, Inc.
Hercules Offshore, Inc., and its debtor and non-debtor subsidiaries
are providers of shallow-water drilling and marine services to the
oil and natural gas exploration and production industry globally.
Hercules Offshore and 13 of its subsidiaries each filed a Chapter
11 bankruptcy petition (Bankr. D. Del. Case Nos. 16-11385 to
16-11398) on June 5, 2016. The petitions were signed by Troy L.
Carson as vice president.
The Debtors listed total assets of $1.06 billion and total debts of
$521.37 million as of March 31, 2016.
The Debtors have hired Michael S. Stamer, Esq., Philip C. Dublin,
Esq., David H. Botter, Esq., and Kevin M. Eide, Esq., at Akin Gump
Srauss Hauer & Feld LLP as general bankruptcy counsel and Robert J.
Dehney, Esq., Eric D. Schwartz, Esq., and Matthew B. Harvey, Esq.,
at Morris, Nichols, Arsht & Tunnell LLP as co-counsel.
The U.S. Bankruptcy Court issued an order appointing Judge
Christopher Sontchi as mediator to govern mediation procedures and
assist in resolving certain objections related to confirmation of
Hercules Offshore's Joint Prepackaged Chapter 11 Plan of
Reorganization.
On June 20, 2016, the U.S. Trustee for the District of Delaware
appointed three members to the Equity Committee. The Equity
Committee is represented by Hogan McDaniel and Kasowitz, Benson,
Torres & Friedman LLP as co-counsel and Ducera Securities LLC as
financial advisors.
Kirkland & Ellis LLP and Kirkland & Ellis International LLP, White
& Case LLP and Klehr Harrison Harvey Branzburg LLP represent an ad
hoc group of certain first lien lenders party to that certain
credit agreement, dated as of Nov. 6, 2015, by and among Hercules
Offshore, Inc., as borrower, the Subsidiary Guarantors as
guarantors, the lenders party thereto, and Jefferies Finance LLC,
as administrative agent and collateral agent, as creditors and
parties-in-interest in the Debtors' Chapter 11 cases.
HOMER CITY: S&P Lowers CCR to 'CC' on Forbearance Agreement
-----------------------------------------------------------
S&P Global Ratings said it lowered its corporate credit ratings on
Homer City Generation L.P. to 'CC' from 'CCC-'. The outlook is
negative. S&P also lowered the issue-level ratings on the
company's senior secured debt to 'CC' from 'CCC'. In addition, S&P
revised the recovery ratings on the debt to '3' from '2'. The '3'
recovery rating indicates expectations for meaningful (50%-70%;
higher end of the range) recovery if a default occurs.
"The downgrade to 'CC' reflects our view that default is a virtual
certainty," S&P Global Ratings credit analyst Kimberly Yarborough.
"It follows Homer City's Oct. 3 announcement that it had entered
into a forbearance agreement with a majority of its noteholders to
extend its debt payment deadline to Oct. 17. Despite the
extension, we expect the company to be unable to pay its debt
payment and anticipate that it will enter into chapter 11
proceedings in the near future."
On Aug. 17, Homer City announced it had received bids ranging from
an implied enterprise values of $230 million to $535 million (about
$122/kilowatt (kW)-$284/kW) and that bondholders had rejected each
of these bids. S&P presumes the asset will be transferred to
lenders after the Oct. 17 forbearance deadline. Finally, liquidity
remains S&P's primary concern, and it continues to assess it as
weak.
The negative outlook reflects the likelihood that S&P will lower
the rating to 'D' following the forbearance, at which point S&P
expects the asset to be transferred to lenders.
HUSKY IMS: S&P Affirms 'B' Rating on 1st Lien Debt
--------------------------------------------------
S&P Global Ratings said that it is affirming its 'B' issue-level
rating, with a '3' recovery-level rating, on Bolton, Ont.-based
Husky IMS International Ltd.'s first-lien debt following the
company's announcement that it is seeking to increase the aggregate
principal amount of its first-lien secured term loan under its
existing credit agreement by US$160 million (for a total of US$1.45
billion).
All of S&P's other ratings on the company are unchanged, including
S&P's 'B' long-term corporate rating on Husky. The outlook is
stable.
The company intends to use the net proceeds from the incremental
term loans, together with some cash, to redeem all of its
US$161 million second-lien debt outstanding, as well as to pay
related fees and expenses. Post transaction, S&P expects to
withdraw the ratings on the second-lien debt.
"We base our corporate credit rating on Husky on our assessment of
its leading position in the niche plastic injection molds and
systems market and our expectation of adjusted debt-to-EBITDA
remaining above 5.5x over the next two years," said S&P Global
Ratings credit analyst Aniki Saha-Yannopoulos.
S&P assess Husky as having a fair business risk profile and highly
leveraged financial risk profile. S&P expects the company will
continue to maintain a high, albeit stable, level of debt that, in
S&P's view, limits the upside potential for its corporate credit
rating on Husky. S&P updated its recovery analysis to reflect the
proposed refinancing, with no change in our '3' recovery rating
(50%-70% indicating meaningful recovery, at the low end of the
range) on the company's first-lien debt. S&P now assumes
first-lien creditors have a priority claim on all of the company's
assets in S&P's simulated default scenario. In addition, the
multiple applied to Husky's distressed EBITDA proxy was revised to
5.5x (from 5.0x) primarily to reflect the relative strength of its
market position.
RATINGS LIST
Husky IMS International Inc.
Corporate credit rating B/Stable/--
Rating Affirmed/Recovery Rating Unchanged
First-lien debt B
Recovery rating 3
IDERA PHARMACEUTICALS: Prices Public Offering of 25M Common Shares
------------------------------------------------------------------
Idera Pharmaceuticals, Inc., announced the pricing of an
underwritten public offering of 25,000,000 shares of common stock
for a public offering price of $2.00 per share. The Company has
granted to the underwriters participating in the offering a 30-day
option to purchase up to an additional 3,750,000 shares of common
stock. All of the shares in the offering are to be sold by Idera.
The offering is expected to close on or about Oct. 13, 2016,
subject to customary closing conditions.
The gross proceeds to Idera from this offering are expected to be
approximately $50.0 million, before underwriting discounts and
commissions and offering expenses. Idera intends to use the net
proceeds from this offering, together with existing cash, cash
equivalents and investments, to advance clinical development of
certain of its programs. J.P. Morgan and Goldman, Sachs & Co. are
acting as joint bookrunning managers for the offering. Wedbush
PacGrow and JMP Securities are acting as co-managers.
The shares are being offered by the Company pursuant to a shelf
registration statement previously filed with the Securities and
Exchange Commission on May 12, 2014, and declared effective by the
SEC on May 22, 2014. A preliminary prospectus supplement
describing the terms of the offering was filed with the SEC on Oct.
5, 2016. The final prospectus supplement relating to the offering
will be filed with the SEC and will be available on the SEC's
website at http://www.sec.gov. The offering will be made only by
means of the written prospectus and prospectus supplement that form
a part of the registration statement. When available, copies of
the final prospectus supplement and the accompanying prospectus
relating to the securities being offered may also be obtained from
J.P. Morgan, c/o Broadridge Financial Solutions, 1155 Long Island
Avenue, Edgewood, NY 11717 (telephone: 866-803-9204); or from
Goldman, Sachs & Co., Attention: Prospectus Department, 200 West
Street, New York, NY 10282, or by telephone at (866) 471-2526 or
e-mail at prospectus-ny@ny.email.gs.com.
About Idera
Cambridge, Massachusetts-based Idera Pharmaceuticals, Inc., is a
clinical stage biotechnology company engaged in the discovery and
development of novel synthetic DNA- and RNA-based drug candidates
that are designed to modulate immune responses mediated through
Toll-like Receptors, or TLRs. The Company has two drug
candidates, IMO-3100, a TLR7 and TLR9 antagonist, and IMO-8400, a
TLR7, TLR8, and TLR9 antagonist, in clinical development for the
treatment of autoimmune and inflammatory diseases.
Idera reported a net loss of $48.6 million in 2015 following a net
loss of $38.6 million in 2014.
As of June 30, 2016, Idera had $69.2 million in total assets, $8.18
million in total liabilities and $61.04 million in total
stockholders' equity.
IMPLANT SCIENCES: Files for Ch. 11 With $117.5M Deal to Sell to L-3
-------------------------------------------------------------------
Implant Sciences Corporation, manufacturer of sensors that detect
trace amounts of explosives and drugs whose products include
"Quantum Sniffer" QS-B220 and "Quantum Sniffer" QS-H150, sought
bankruptcy protection ahead of the Oct. 31, 2016, maturities of its
funded debt. The Company intends to continue in the possession of
its properties and the management of its business as
debtor-in-possession while it pursues a sale of its assets.
Implant Sciences and its direct subsidiaries IMX Acquisition Corp.,
C Acquisition Corp. and Accurel Systems International Corporation
each filed a voluntary petition under Chapter 11 of the Bankruptcy
Code on Oct. 10, 2016. As of the Petition Date, the Debtors
estimated both assets and liabilities of $100 million to $500
million.
As disclosed in the bankruptcy filing, each of the Debtors'
respective board of directors voted to authorize the Chapter 11
filings as the Debtors would not have the liquidity to continue
their operations.
Between December 2008 and March 2014, Implant Sciences issued a
series of senior secured promissory notes to investors managed by
BAM Administrative Services LLC and Platinum Partners Value
Arbitrage Fund L.P. As of the Petition Date, an aggregate of $84.1
million principal amount and interest are outstanding under the
Notes, according to court documents.
Due to the Debtors' inability to obtain new financing nor negotiate
further maturity extensions with their lenders, they have
determined to sell their assets, which marketing process began in
August 2015.
Prior to the Petition Date, the Debtors entered into a stalking
horse purchase agreement with L-3 Communications Corporation
pursuant to which L-3 has agreed to acquire substantially all of
the Debtors' assets for $117.5 million in cash, plus assumption of
specified liabilities.
L-3 has agreed to preserve the Debtors' business as a going
concern. Under the Stalking Horse Agreement, the Debtors'
employees will have the ability to keep their jobs on substantially
the same terms and conditions under which they are currently
employed. The Debtors have filed a motion seeking, among other
things, approval of bid protections, as well as bidding procedures
to ensure that they receive the highest and best value for their
assets.
To fund the Debtors' operations through the remainder of the
marketing process and the culmination of the auction and approval
of the sale to the successful bidder at the auction, DIP SPV I,
L.P., has agreed to provide a $5,700,000 postpetition term loan
facility pursuant to a senior secured super-priority
debtor-in-possession loan and security agreement.
Contemporaneously with the petitions, the Debtors have filed
various first day motions seeking permission to, among other
things, use existing cash management system, pay employee
obligations, prohibit utility companies from discontinuing
services, and pay critical vendor claims. A full-text copy of the
declaration in support of the First Day Motions is available for
free at http://bankrupt.com/misc/16_IMX_Declaration.pdf
The Debtors have hired Willkie Farr & Gallagher LLP as general
counsel; Young, Conaway, Stargatt & Taylor LLP as Delaware counsel;
and Kurtzman Carson Consultants, LLC as claims, noticing and
solicitation agent. Chardan Capital Markets, LLC and Noble
Financial Capital Markets serve as financial advisors and
investment bankers to the Debtors.
The cases are pending joint administration under Case No. 16-12238
before the Hon. Brendan Linehan Shannon.
About Implant Sciences
Headquartered in Wilmington, Massachusetts, Implant Sciences is a
leader in developing and manufacturing advanced detection
capabilities to counter and eliminate the ever-evolving threats
from explosives and drugs. The company's team of dedicated trace
detection experts has developed proprietary technologies used in
its commercial products, thousands of which have been sold across
more than 70 countries worldwide. The company's ETDs have received
approvals and certifications from several international regulatory
agencies including the TSA in the U.S., ECAC in Europe, CAAC and
the Ministry of Public Safety in China, Russia FSB, STAC in France,
and the German Ministry of the Interior. It has also received the
2015 GSN Airport/Seaport/Border Security Award for "Best Security
Checkpoint".
The Company originally developed ion-based technologies and
provided commercial services and products to the semiconductor,
medical device, and security industries. In 2007, the Debtors
decided to focus exclusively on their security products and
divested their non-core semiconductor and medical business.
Implant Sciences has been trading on the over-the-counter markets
under the trading symbol "IMSC" since May 2009, which has limited
the Debtors' liquidity and impaired their ability to raise capital,
as disclosed in court papers.
For further details on the Company and its products, please visit
the Company's Web site at http://www.implantsciences.com/
INLAND ENVIRONMENTAL: Taps Fuqua & Associates as Legal Counsel
--------------------------------------------------------------
Inland Environmental and Remediation, Inc. seeks approval from the
U.S. Bankruptcy Court for the Southern District of Texas to hire
Fuqua & Associates P.C.
Fuqua & Associates 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 a plan of arrangement.
The firm's professionals and their hourly rates are:
Richard Fuqua, II $500
Mary Ann Bartee $250
Michael Fuqua $225
T.J. O'Dowd $95
In a court filing, Mr. Fuqua disclosed that his firm does not hold
or represent any interests adverse to the Debtor and its bankruptcy
estate
The firm can be reached through:
Richard L. Fuqua, II, Esq.
Fuqua & Associates P.C.
5005 Riverway, Ste. 250
Houston, TX 77056
Tel: 713-960-0277
Email: fuqua@fuqualegal.com
About Inland Environmental
Inland Environmental and Remediation, Inc. sought protection under
Chapter 11 of the Bankruptcy Code (Bankr. S. D. Texas Case No.
16-34624) on September 14, 2016. The petition was signed by David
L. Polston, chief executive officer and president.
The case is assigned to Judge Jeff Bohm.
At the time of the filing, the Debtor estimated its assets and
liabilities at $1 million to $10 million.
IRINA ZAGORSKAYA: Disclosures OK'd, Plan Confirmation on Dec. 19
----------------------------------------------------------------
Judge Jerry A. Funk of the U.S. Bankruptcy Court for the Middle
District of Florida approved the disclosure statement explaining
Irina Zagorskaya's Plan and fixed Dec. 5, 2016, as the last day for
filing written acceptances or rejections of the Debtor's plan.
Judge Funk will consider confirmation of the plan on a hearing to
be held on Dec. 19, 2016, at 11:30 a.m. Any objections to
confirmation are required to be filed and served seven days before
Dec. 19.
The attorney for the Plan Proponent is directed to tabulate the
ballots by Dec. 12, 2016.
About Irina Zagorskaya
Irina Zagorskaya filed a Chapter 11 bankruptcy petition (Bankr.
M.D. Fla. Case No. 16-00272) on January 27, 2016.
ITT EDUCATIONAL: Bankruptcy Trustee Seeks to Fend Off SEC, CFPB
---------------------------------------------------------------
Peg Brickley, writing for The Wall Street Journal Pro Bankruptcy,
reported that the bankruptcy trustee sifting through the wreckage
left when the ITT Technical Institute chain of schools collapsed
says the Consumer Financial Protection Bureau and other government
agencies are getting in her way.
According to the report, Deborah Caruso, the trustee, wants the
CFPB sidelined by court order, along with the Securities and
Exchange Commission and attorneys general for Massachusetts and New
Mexico, as well as others that sued the troubled for-profit
educational company before it filed for bankruptcy in September.
On Oct. 11, 2016, in U.S. Bankruptcy Court in Indianapolis, Judge
James Carr set the matter for a hearing Nov. 2, WSJ said. Ms.
Caruso is asking for an injunction barring government agencies from
continuing their legal march on ITT Tech, the report related.
Additionally, she wants a halt to lawsuits aimed at the company's
former executives, the report further related.
Ms. Caruso is particularly concerned about a Freedom of Information
Act request to the CFPB, which seeks information that ITT Tech
indicated it would rather not see become public, the report said,
citing the court papers.
About ITT Educational
ITT Educational Services, Inc., is a proprietary provider of
post-secondary degree programs in the United States based on
revenue and student enrollment. As of Dec. 31, 2015, ITT was
offering: (a) master, bachelor and associate degree programs to
approximately 45,000 students at ITT Technical Institute and
Daniel
Webster College locations; and (b) short-term information
technology and business learning solutions for individuals.
ITT Educational and its subsidiaries ESI Service Corp. and Daniel
Webster College, Inc. ceased operations and commenced bankruptcy
proceedings by filing voluntary petitions for relief under
Chapter 7 of the Bankruptcy Code (Bankr. S.D. Ind.) on Sept.
16, 2016.
JAMES HALLIDAY LLC: Unsecureds to Get 100% Recovery Under Plan
--------------------------------------------------------------
James W. Halliday, Jr., DMD, LLC, d/b/a Cook Inlet Dental, filed
with the U.S. District Court for the District of Alaska a
disclosure statement explaining its Chapter 11 plan of
reorganization.
The Debtors discloses that payments and distributions under the
Plan will be funded by ongoing revenue of the Debtor from the
dental practice.
The Debtor's sole owner is James W. Halliday, Jr., a dentist
licensed to practice in Alaska. The Debtor fell behind on required
debt service for its office building loan and the creditor started
non-judicial foreclosure; the defaults on this loan were cured
twice but on the third default the creditor refused to accept a
cure, so the only way to retain the building was to file the
chapter 11 case.
Under the Plan, Class 1 unsecured creditors will be paid 100% of
their claims. A payment of 5% of the balance owed will be made on
the first day of July 2017 and on the first day of each succeeding
calendar quarter until the balance has been paid in full, without
interest.
The Class 2 unsecured claim of the Alaska Department of Health and
Social Services is being paid in accordance with a pre-petition
agreement by offset of $500 from each weekly payment the Debtor
receives for patient treatment. This claim will be paid according
to this formula until paid in full, which will take approximately
15 months.
Class 3 is a claim by Integrated Account Management, which holds a
deed of trust on the Debtor's office building at 908 Highland
Avenue, Kenai, Alaska. The balance on the bankruptcy filing date
was $357,113.59. On the effective date the balance will be
approximately $344,000. The promissory note bears interest at the
annual rate of 8.0% and requires monthly payments of $4,319.55 plus
reserves of $319 to cover real estate taxes. The note requires a
balloon payment of the balance on December 1, 2023. The Plan
provides that the payments on this note will be made on the first
day of each month in the required amount and the interest rate will
not be changed. The balloon payment of the balance, including any
amounts which were delinquent on the bankruptcy filing date, will
be made on or before the maturity date provided in the note.
Class 4 is a claim by Kaplan Investments who holds a deed of trust
on the residence at 50286 Middleton Drive, Kenai, Alaska. The
balance on the bankruptcy filing date was $341,197. On the
effective date the balance will be approximately $340,000. The
promissory note bears interest at the annual rate of 10.5% and
requires monthly payments of $2,823 plus reserves of $566 to cover
real estate taxes. The Plan provides that the payments on this
note will be made on the first day of each month in the amount of
$2,823 plus required reserves for taxes, and the interest rate will
be reduced to 8%. All amounts which were delinquent on the
bankruptcy filing date will be added to the principal balance.
Payments will be made in the required amount until the balance is
paid in full.
Class 5 is the claim secured by the duplex at 53641 Izigan Avenue,
Kenai Alaska, which shall be satisfied by allowing the deed of
trust beneficiary to foreclose non-judicially. To the Debtor's
schedules, the value of this property is about $54,000 less than
the secured debt. However, Alaska law does not permit a deficiency
claim following a non-judicial foreclosure. The Debtor does not
expect an unsecured deficiency claim to be asserted as a result of
this foreclosure. The triplex at 50283 Middleton Drive, Kenai was
returned to the mortgage holder by deed in lieu of foreclosure
following a court order granting the creditor permission to
foreclose on the property. The Debtor will not recover any value
from this transfer.
The Plan further provides that the Debtor's estimated
administrative expenses of $8,475 will be paid full on the
effective date of the Plan. Professional fees of $25,000 will be
paid from funds in trust on approval of fee application with the
balance paid in quarterly installments of $2,500.
The $2,500 in unemployment taxes the Debtor owes to the State of
Alaska will be paid in five quarterly installments of $500 each
commencing July 1, 2017.
The Debtor's and the Hallidays' estimated income tax liability of
$60,000 (including interest) will be paid in quarterly installments
of $3,000 each commencing on the first anniversary of the effective
date, with the entire balance to be paid in full on the fifth
anniversary of the petition date. Each installment shall include
interest on the unpaid balance at the applicable rate for
underpayment of tax liabilities.
The Debtor expects to have not less than $25,000 on hand on the
effective date, which will be sufficient to pay the expenses that
need to be paid at that time.
The Plan Proponent's financial projections show that the Debtor
will have an aggregate annual average cash flow, after paying
operating expenses and post-confirmation taxes, of $150,000 from
which creditor payments can be made. The final Plan payment is
expected to be paid on by the fifth anniversary of the effective
date.
A full-text copy of the Disclosure Statement is available at:
http://bankrupt.com/misc/akb16-00088-86.pdf
About James W. Halliday, DMD, LLC
James W. Halliday, Jr., DMD, LLC, sought protection under Chapter
11 of the Bankruptcy Code in the District of Alaska (Anchorage)
(Case No. 16-00088) on April 14, 2016. The petition was signed by
James W. Halliday, managing member.
The Debtor is represented by David H. Bundy, Esq., at David H.
Bundy, P.C.
The Debtor estimated both assets and liabilities in the range of $1
million to $10 million.
JOHN YURKOVICH AUTO: Plan Hearing Nov. 17 Before Judge Oxholm
-------------------------------------------------------------
After reviewing the First Amended Combined Plan and Disclosure
Statement filed by debtor John Yurkovich Auto Sales, Inc., Judge
Walter Shapero has granted preliminary approval of the Disclosure
Statement.
The deadline to return ballots on the Plan, as well as to file
objections to final approval of the Disclosure Statement and
objections to confirmation of the plan, is Nov. 7, 2016. The
completed ballot form will be returned by mail to the Debtor's or
plan proponent's attorney:
Ethan D. Dunn
MAXWELL DUNN, PLC
24725 W. 12 Mile Rd., Suite 304
Southfield, MI 48034
The time and date of the hearing has changed from the original case
management order and the case is being reassigned from Judge
Shapero to the docket of Judge Maria Oxholm. The hearing on
objections to final approval of the disclosure statement and
confirmation of the Plan will be held on Nov. 17, 2016 at 11:00
a.m. before Judge Oxholm in the U.S. Bankruptcy Courtroom, Rm.
1975, 211 Fort Street, Detroit, Michigan 48226.
The deadline for all professionals to file final fee applications
is 30 days after the confirmation order is entered.
As reported in the TCR, the Debtor filed a Combined Plan of
Reorganization and Disclosure Statement. Each holder of an allowed
unsecured claim will receive a pro rata distribution from the
proceeds paid in by the Debtor to fund the Plan, but only after
payment in full of all claims in any senior class or group.
The Debtor estimates that the total amount of claims this class is
$231,000. A copy of the Disclosure Statement is available at:
http://bankrupt.com/misc/mieb16-42857-69.pdf
John Yurkovich Auto Sales, Inc., filed for Chapter 11 bankruptcy
protection (Bankr. E.D. Mich. Case No. 16-42857) on Feb. 29, 2016,
estimating its assets and liabilities at between $500,001 and $1
million each. Ethan D. Dunn, Esq., at Maxwell Dunn, PLC, serves as
the Debtor's bankruptcy counsel.
JOSE DOMINGUEZ: Hearing on Reorganization Plan on Dec. 7
--------------------------------------------------------
Judge Brenda Moody Whinery approved Jose Dominguez's Second Amended
Disclosure Statement and set a Dec. 7, 2016 hearing to consider
confirmation of the Debtor's Reorganization Plan.
Judge Whinery specifically ordered that:
* The last day for filing with the Court written acceptances or
rejections of the Plan is fixed at five business days prior to the
hearing date set for confirmation of the Plan. Ballots will be
mailed to the proponent of the plan in care of:
Eric Slocum Sparks, Esq.
3505 North Campbell Avenue, #501
Tucson, Arizona 85719
* The last day for filing and serving, pursuant to Bankruptcy
Rule 3020(b)(1), written objections to confirmation of the Plan is
fixed at five business days prior to the hearing date set for
confirmation of the Plan.
* The written report by proponent, as required by Local
Bankruptcy Rule 3018, is ordered to be filed three business days
prior to the hearing date set for the confirmation of the Plan.
* The hearing to consider the confirmation of the Plan will be
held at the Bankruptcy Court, 38 S. Scott, Room 446, Tucson,
Arizona, or Phoenix courtroom 301, on Dec. 7, 2016 at 10:00 a.m.
before the Honorable Brenda Moody Whinery.
* If the Debtor is an individual, the above hearing date is the
last date to file a complaint objecting to the discharge of the
Debtor pursuant to 11 U.S.C. Sections 1141 & 727.
A copy of the Disclosure Statement Order is available for free at:
http://bankrupt.com/misc/azb15-11701_DS_Ord_DS_Ord_J_Dominguez.pdf
As reported in the TCR, Jose A. Dominguez filed a Second Amended
Disclosure Statement dated Sept. 21, 2016, in connection with his
First Amended Plan of Reorganization dated May 10, 2016.
Under the Plan, holders of unsecured claims in the amount of
$16,743 will be paid the sum of $690 on a quarterly basis, pro
rata, from the Debtors' disposable income, to be paid on the last
day of each quarter, starting with the quarter ending after the
Effective Date and anticipated to be Sept. 30, 2016, and continuing
each quarter thereinafter for five years. A copy of the Disclosure
Statement is available at:
http://bankrupt.com/misc/azb15-11701-158.pdf
Jose A Dominguez filed for Chapter 11 bankruptcy protection (Bankr.
D. Ariz. Case No. 15-11701) on Sept. 14, 2015.
The Debtor is represented by Eric Slocum Sparks, Esq., at the Law
Offices of Eric Slocum Sparks, P.C., in Tucson, Arizona.
JOSEPH A. OLADOKUN: DCHN to Seek Plan Confirmation on Nov. 9
------------------------------------------------------------
Judge Brenda Moody Whinery of the U.S. Bankruptcy Court for the
District of Arizona approved the Disclosure Statement in support of
Diamond Care Health Network's Third Amended Chapter 11 Plan of
Reorganization Dated Sept. 23, 2016, for Joseph A. Oladokun and
Florence A. Oladokun.
Judge Whinery ordered that:
* The hearing to consider the confirmation of the plan shall be
held at the United States Bankruptcy Court, 38 South Scott Avenue,
Courtroom 446, Tucson, Arizona, 85701 on November 9, 2016 at 10:45
a.m.
* Attorneys whose practice is located in Phoenix, Arizona can
appear by video conferencing at the United States Bankruptcy Court,
230 North 1st Avenue, Courtroom Number 301, Phoenix Arizona.
* Ballots accepting or rejecting the plan must be received by
DCHN's counsel by Nov. 2, 2016. Ballots must be mailed/e-mailed/
faxed to DCHN's counsel as follows:
Christopher R. Kaup
Tiffany & Bosco, P.A.
2525 E. Camelback Road, Seventh Floor
Phoenix, AZ 85016
Fax No. (602) 255-0103
E-mail: crk@tblaw.com
lal@tblaw.com
* The last day for filing with the Court and serving, pursuant
to Bankruptcy Rule 3020(b)(1), written objections to confirmation
of DCHN's Plan is Nov. 2, 2016.
* The written report by DCHN, as required by Local Rule 3018,
is to be filed three days prior to the hearing date set for
confirmation of DCHN's Plan.
* If the Debtor is an individual, the above hearing date is the
last date to file a complaint objecting to the discharge of the
Debtor pursuant to 11 U.S.C. Sec. 1141 & Sec. 727.
* If an objection to confirmation is filed, the Court may
utilize the initial hearing to determine the appropriate discovery
procedures, the scheduling of a Rule 16 Conference, etc., under the
Federal Rules of Civil Procedure, as amended.
* If no objection to confirmation is filed, the Court may still
request that evidence be presented or that counsel present an offer
of proof in support of confirmation of the plan of reorganization.
A copy of the Disclosure Statement Order is available for free at:
http://bankrupt.com/misc/azb12-07178_385_DS_Ord_Oladokun.pdf
DCHN filed a Third Amended Chapter 11 Plan of Reorganization and
Disclosure Statement on Sept. 23, 2016. Under the Plan, each
holder of an allowed general unsecured claim (Class 6) will be paid
in full, plus all interest which accrued at 3.5% per annum since
the date the Debtors filed for bankruptcy in April 5, 2012, on the
Effective Date from the purchase proceeds. A copy of the
Disclosure Statement is available at:
http://bankrupt.com/misc/azb12-07178-381.pdf
Joseph Oladokun filed for Chapter 11 bankruptcy protection (Bankr.
D. Ariz. Case No. 12-07178) on April 5, 2012.
Creditor Diamond Care Health Network is represented by Christopher
R. Kaup, Esq., at Tiffany & Bosco P.A., in Phoenix.
K&J LANDSCAPE: Hires Mauro Savo as Bankruptcy Counsel
-----------------------------------------------------
K&J Landscape Management, Inc. seeks authorization from the U.S.
Bankruptcy Court for the District of New Jersey to employ John F.
Bracaglia, Esq., at Mauro, Savo, Camerino, Grant & Schalk as
attorney.
The Debtor requires Attorney Bracaglia to:
a. file its Chapter 11 petition; and
b. assist them in reorganization process.
John F. Bracaglia will be billed at $350 per hour. Associates time
will be billed at a lesser rate.
John F. Bracaglia 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.
Bracaglia can be reached at:
John F. Bracaglia, Jr., Esq.
MAURO, SAVO, CAMERINO, GRANT & SCHALK
77 N Bridge St.
Somerville, NJ 08876
Telephone: (908) 526 0707
Facsimile: (908) 725 8483
E-mail: bracaglia@maurosavolaw.com
About K&J Landscape
K & J Maintenance is a fully insured, licensed business in New
Jersey, a member of the Professional Landscape Alliance, and a
certified hardscape installer from Interlocking Concrete Pavement
Institute.
K & J Maintenance is family owned business operating for over 20
years. The Company focuses on delivering personal service to
residential and commercial customers.
K&J Landscape Management, Inc. filed a Chapter 11 petition (Bankr.
D.N.J. Case No. 16-27235) on September 8, 2016, represented by John
F. Bracaglia, Jr., Esq., at Mauro, Savo, Camerino, Grant & Schalk.
KIRK LLC: Taps Barbara M. Smith as Accountant
---------------------------------------------
The Kirk LLC seeks approval from the U.S. Bankruptcy Court for the
District of Utah to hire an accountant.
The Debtor proposes to hire Barbara M. Smith Accounting Inc. to
provide accounting services, which include assisting the Debtor in
the preparation of its financial projections and monthly operating
reports.
The firm's normal billing rate is $155 per hour for shareholders,
and $50 to $100 per hour for accounting analysts and assistants.
Barbara Smith, a certified public accountant, disclosed in a court
filing that she does not hold any interests adverse to the Debtor's
estate or its creditors.
The firm can be reached through:
Barbara M. Smith
Barbara M. Smith Accounting Inc.
2143 South 225 East
Kaysville, UT 84037
Tel: (206) 767-2600
The Debtor is represented by:
Adam S. Affleck, Esq.
T. Edward Cundick, Esq.
Prince, Yeates & Geldzahler
A Professional Corporation
15 W. South Temple, Ste. 1700
Salt Lake City, UT 84101
Tel: (801) 524-1000
Fax: (801) 524-1098
Email: asa@princeyeates.com
Email: tec@princeyeates.com
About The Kirk
The Kirk LLC filed a Chapter 11 petition (Bankr. D. Utah Case No.
16-26470) on July 26, 2016. The petition was signed by Andrew H.
Patten, chief restructuring officer. The Debtor is represented by
T. Edward Cundick, Esq., at Prince, Yeates & Geldzahler. The case
is assigned to Judge Kevin R. Anderson. The Debtor estimated
assets and liabilities at $1 million to $10 million at the time of
the filing.
KLAMON LLC: Seeks Nov. 18 Exclusive Plan Filing Period Extension
----------------------------------------------------------------
Klamon LLC dba Down South Offroad Park asks the U.S. Bankruptcy
Court for the Southern District of Texas to extend its exclusive
period for filing a Plan and Disclosure Statement to November 18,
2016.
Absent an extension, the Debtor's exclusive period to file a Plan
and Disclosure Statement would have expired on October 4, 2016.
The Debtor relates that the case, though not large in size, has
multiple complex and critical issues yet to be resolved, including
the success of the Debtor's efforts to determine the amount of the
secured claims relating to Service First and Riversand. The Debtor
further relates that issues relating to Harris County caused a
delay in retaining special counsel for the Service First and
Riversand issues.
The Debtor tells the Court that it has been busy post-petition
pursuing alternate sources of revenue. The Debtor further tells
the Court that it is currently exploring all avenues to bring in
additional liquidity to the estate for purposes of funding a
financially viable Chapter 11 plan, including taking affirmative
steps to sublease its property in order to generate additional cash
flow post-petition.
The Debtor contends that the claims bar date is October 24, 2016,
and that it is necessary for the Debtor to resolve the disputed
Riversand and Service First claims. The Debtor further contends
that neither Riversand nor Service First have filed proofs of
claim, and that if they refuse to file claims, the Debtor will do
so for those parties and object to those disputed claims. The
Debtor adds that such an objection is necessary for the Debtor to
file and confirm a plan of reorganization.
The Debtor submits that there is substantial cause to extend
Exclusivity, including, the Debtor's reasonable prospects for
filing a viable Chapter 11 plan once all issues are resolved and
all timely claims have been filed.
About Klamon LLC dba Down South Offroad Park
Klamon LLC 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.
LAKEVIEW MARINA: Seeks to Hire Robert Jones as Bookkeeper
---------------------------------------------------------
Lakeview Marina & Bar, Inc. seeks approval from the U.S. Bankruptcy
Court for the Western District of Wisconsin to hire a bookkeeper in
connection with its Chapter 11 case.
The Debtor proposes to hire Robert Jones of R J Jones Accounting
Services, and pay him $50 per hour for his services.
Mr. Jones does not represent or hold 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.
Mr. Jones maintains an office at:
Robert Jones
R J Jones Accounting Services
209 W. Blackhawk Avenue
Prairie du Chien, WI 53821
About Lakeview Marina
Lakeview Marina & Bar, Inc. filed a Chapter 11 bankruptcy petition
(Bankr. W.D. Wis. Case No. 16-12476) on July 18, 2016. The Debtor
is represented by Wade M. Pittman, Esq.
The Debtor's both assets and debts are under $1 million.
No official committee of unsecured creditors has been appointed in
the case.
LEAH M GANSLER: All Creditors Get 100% Payment Under Revised Plan
-----------------------------------------------------------------
Leah M. Gansler filed an amended disclosure statement describing
its amended Chapter 11 plan that proposes full payment to all
creditors.
Plan payments will be funded from Debtors' wages and or from the
sale of the the Debtors' real property located at 2700 N. Ocean
Drive Units 401/501, Singer Island, FL (the "Florida Property").
According to the Amended Plan, Class 1 administrative claims will
be paid, in cash, on the Effective Date.
Class 2 priority claims of the Internal Revenue Service will be
paid in full, with interest as applicable, within five years from
the effective date.
Class 3 claims asserted by ADU Investments LLC -- a secured Claim
in the amount of $2,587,000.00; Property Tax in favor of Palm Beach
County, Florida in the amount of $175,000.00; Home Owners
Association Dues in favor of 2700 N. Ocean Drive LLC in the amount
of $160,000.00 will be paid on or about October 19, 2016 from the
proceeds of the auction sale of the Florida Property. These amounts
will be paid in full from the Concierge auction proceeds.
Class 4 secured claim of OCWEN Loan Servicing, LLC in the
approximate amount of $1,461,000.00 shall be deemed allowed in full
and will be brought 100% current on or before the 90th day from
confirmation of the Amended Plan of Partial Liquidation or upon
availability of the sales proceeds from the proposed auction sale
of the Florida Property, whichever shall occur first. The debtors
shall thereafter pay Ocwen according to the applicable loan
documents agreed to by the debtors and Ocwen, and those loan
documents shall be in full force and effect.
Class 5 secured claim of M & T Bank in the approximate amount of
$300,000.00 payable at the rate of $2,071.74 principal and
interest, to the extent allowed, will be modified to 15 year fixed
at the rate of 3.00%.
Class 6 secured claim of Porsche Financial Services, in the amount
of $30,000.00 will be paid monthly payment of $555.89 principal and
interest at the rate of 4.250% for a period of five years or until
fully amortized.
Class 7 secured claim of Mercedes-Benz Financial Services, in the
amount of $10,000.00, will paid a monthly payment of $185.30
principal and interest at the rate of 4.250%, or until fully
amortized.
Class 8 unsecured claims will be paid 100% of their claims, over a
period of five years. The monthly payment will be $3,700.00 and
will be distributed on a pro-rata basis. The first payment to this
Class will be made on the first business day of the fourth month
after the Effective Date and monthly thereafter until the Allowed
Claimants of this class have received an amount equal to 100% of
their allowed claims.
A full-text copy of the Amended Disclosure Statement is available
at
http://bankrupt.com/misc/mdb15-25311-190.pdf
About Leah M Gansler
Leah M Gansler filed a Chapter 11 petition (Bankr. D. Md. Case No.
15-25311) on Nov. 3, 2015. Her husband, Jacques Gansler, filed his
Chapter 11 petition (Case No. 15-26726) on Dec. 1, 2015. The cases
were consolidated under Mrs. Gansler's case on Dec. 14, 2015.
Mrs. Gansler was the head of a Washington, D.C area philanthropic
organization, Charity Works for many years. She has worked without
compensation. Charity Works has been closed. Mr. Gansler is a
professor emeritus at the University of Maryland, College Park. He
is also a published author and noted authority in the field of
logistics. He held the position of Under Secretary of Defense for
Logistics under two administrations. Mr. Gansler is a member of
the boards of directors of several corporations. In October 2015,
Mr. Gansler started the "Gansler Group LLC" which consults with
defense related organizations and corporations.
The Debtors have and continue to act as a debtors-in-possession. No
Trustee has been appointed and no Creditors Committee has been
created.
LIGHSTREAM RESOURCES: In CCAA Proceedings, FTI Named as Monitor
---------------------------------------------------------------
Lighstream Resources Ltd. et al. sought and obtained from the Court
of Queen's Bench of Alberta an initial order under the Companies'
Creditors Arrangement Act as amended under the court file number
1601-12571. Pursuant to the initial order, FTI consulting Canada
Inc. has been appointed as monitor.
A copy of the initial order and other public information concerning
these CCAA proceedings can be found on the monitor's website at
http://cfcanada.fticonsulting.com/lighstream,or may be obtained by
contacting the monitor at:
FTI Consulting Canada Inc.
Monitor of Lightstream
Suite 720-440 2nd Ave., S.W.
Calgary, Alberta T2P 5E9
Tel: 1-855-344-1825
Fax: 403-232-6116
Email: lighstream@fticonsulting.com
Lighstream Resources Ltd. -- http://www.lightstreamresources.com--
is an oil and gas exploration and production company focused on
light oil in the Bakken and Cardium resource plays.
LIME ENERGY: Special Meeting of Stockholders Set for Nov. 10
------------------------------------------------------------
A special meeting of stockholders of Lime Energy Co. will be held
at the Company's headquarters at 4 Gateway Center, 4th Floor, 100
Mulberry Street, Newark, NJ on Nov. 10, 2016, at 9:00 a.m., local
time, for the following purposes:
1. To consider and vote upon proposals to amend the Company's
Certificate of Incorporation to effect, alternatively, as
determined by the Company's Board of Directors in its
discretion, one of three reverse stock splits -- 1-for-300,
1-for-500, or 1-for-1000 -- of the shares of the Company's
common stock, par value $.0001 per share which, if approved
and implemented, would enable the Company to suspend its
periodic reporting obligations under the Securities Exchange
Act of 1934, as amended, and thereby eliminate many of the
expenses associated with being subject to reporting
obligations of the Securities and Exchange Commission.
2. To consider and vote upon a proposal to amend the Company's
Certificate of Incorporation to effect a forward stock split
of the Common Stock immediately following the reverse stock
split of the Common Stock, at a ratio that is reciprocal to
the ratio ultimately selected by the Board for the reverse
stock split.
As a result of these proposed amendments, (a) each stockholder of
record owning fewer than a minimum number of shares (300, 500, or
1000) immediately prior to the effective time of the reverse stock
split will receive at least $2.49 in cash (subject to any
applicable U.S. federal, state and local withholding tax), without
interest, per pre-split share, and (b) each stockholder of record
owning at least a minimum number of shares (300, 500, or 1000)
immediately prior to the effective time of the reverse stock split
will continue to hold the same number of shares of Common Stock
after completion of the reverse/forward stock split. Although both
the reverse stock split and the forward stock split will be voted
on separately, the Company will not implement either the reverse
stock split or the forward stock split unless both are approved by
the Company's stockholders and the Board gives final approval to
implement them.
A full-text copy of the Proxy Statement is available for free at:
https://is.gd/N7uKNa
About Lime Energy
Headquartered in Huntersville, North Carolina, Lime Energy Co. --
http://www.lime-energy.com/-- is engaged in planning and
delivering clean energy solutions that assist its clients in their
energy efficiency and renewable energy goals. The Company's
solutions include energy efficient lighting upgrades, energy
efficient mechanical and electrical retrofit and upgrade services,
water conservation, building weatherization, on-site generation
and renewable energy project development and implementation. The
Company provides energy solutions across a range of facilities,
from high-rise office buildings, distribution facilities,
manufacturing plants, retail sites, multi-tenant residential
buildings, mixed use complexes, hospitals, colleges and
universities, government sites to small, single tenant facilities.
Lime Energy reported a net loss available to common stockholders of
$4.44 million on $113 million of revenue for the year ended Dec.
31, 2015, compared to a net loss available to common stockholders
of $5.60 million on $58.8 million of revenue for the year ended
Dec. 31, 2014.
As of June 30, 2016, Lime Energy had $46.2 million in total assets,
$40.6 million in total liabilities, $11.40 million in contingently
redeemable series C preferred stock, and a $5.76 million total
stockholders' deficiency.
MAGNETATION LLC: Wants Plan Filing Period Extended to Nov. 5
------------------------------------------------------------
Magnetation LLC and its affiliated Debtors ask the U.S. Bankruptcy
Court for the District of Minnesota to extend their exclusive
periods within which to file a plan of reorganization and solicit
votes on their plan, to November 5, 2016 and January 7, 2017,
respectively.
Absent an extension, the Debtors' Exclusive Filing Period would
have expired on September 30, 2016. The Debtors' Exclusive
Solicitation Period currently expires on November 29, 2016.
The Debtors relate that although tangible progress had been made
toward the Debtors’ goals of restructuring their business and
maximizing value for their estates, the Debtors can no longer
continue operating without additional liquidity. The Debtors
further relate that they began simultaneously preparing to
consummate a transaction that would maximize value for their
estates in the near term.
The Debtors contend that they entered into a global settlement
agreement with AK Steel Corporation, the Debtors' prepetition
senior secured lenders and Magnetation, Inc., the Debtors' 50.5%
owner. The Settlement Agreement contemplates that the Debtors will
cease operations by no later than October 14, 2016 and sell their
remaining assets and safely and efficiently wind down their
bankruptcy estates.
The Debtors tell the Court that while their goal has always been to
emerge from chapter 11 as a going concern, the Debtors are
cognizant of their fiduciary duty to maximize the value of their
estates. The Debtors further tell the Court that in the event that
a going concern transaction is not an available option for the
Debtors, the Settlement Agreement provides the best alternative and
avoids the need for a "fire sale" liquidation, which would have a
materially adverse effect on the value of the Debtors’ estates
and the recoveries available to creditors.
The Debtors relate that they have negotiated for a "fiduciary out"
in the Settlement Agreement, which provides that, on or prior to
the Effective Date, the Debtors may terminate the Settlement
Agreement if the Debtors receive a bona fide proposal for an
alternative transaction that provides for a higher or better
economic recovery to the Debtors’ estates than the one
represented by the Settlement Agreement that the Debtors reasonably
believe in good faith can be consummated in accordance with the
Bankruptcy Code and other applicable law, and nothing in the
Settlement Agreement precludes the Debtors from engaging with any
party with respect to an alternative transaction. The Debtors
further relate that they and their advisors continue to engage with
a party that has indicated continued interest in a potential
transaction.
The Debtors believe it is important to maintain exclusivity in the
event that such third party or any other party delivers to the
Debtors a higher or better offer and the Debtors determine to
exercise their right to terminate the Settlement Agreement, or, if
after the Effective Date, the Debtors determine that reorganizing
around any of their remaining assets would be value-maximizing.
The Debtors assert that at such time, they would need to formulate
a plan and disclosure statement and develop support therefor.
The Debtors' Motion is scheduled for hearing on October 25, 2016 at
1:00 p.m. The deadline for filing responses to the Debtor's Motion
is October 20, 2016.
About Magnetation LLC.
Magnetation LLC -- http://www.magnetation.com/-- is a joint
venture between Magnetation, Inc. (50.1% owner) and AK Iron
Resources, LLC, an affiliate of AK Steel Corporation (49.9%
owner).
Magnetation LLC recovers high-quality iron ore concentrate from
previously abandoned iron ore waste stockpiles and tailings
basins.
Magnetation LLC owns iron ore concentrate plants located in
Keewatin, MN, Bovey, MN and Grand Rapids, MN, and an iron ore
pellet plant in Reynolds, IN.
Magnetation LLC, Mag Lands, LLC, Mag Finance Corp., Mag Mining, LLC
and Mag Pellet, LLC filed chapter 11 petitions (Bankr. D. Minn.
Case Nos. 15-50307 to 15-50311) on May 5, 2015, after reaching a
deal with secured noteholders on a balance sheet restructuring.
The cases are assigned to Chief Judge Gregory F. Kishel.
The Debtors have tapped Marshall S. Huebner, Esq., Damiam S.
Schaible, Esq., and Michelle M. McGreal, Esq., at Davis Polk &
Wardwell LLP and Clinton E. Cutler, Esq., James C. Brand, Esq., and
Sarah M. Olson, Esq., at Fredrikson Byron, P.A. as attorneys;
Blackstone Advisory Partners LP as financial advisor; and Donlin,
Recano & Company, Inc., as the claims agent.
The Debtors estimated assets at $100 million to $500 million and
liabilities at $500 million to $1 billion.
The U.S. Trustee for Region 12 appointed three creditors of
Magnetation LLC to serve on an official committee of unsecured
creditors.
MAGNOLIA STATE SCHOOL: Oct. 27 Hearing on Plan & Disclosures Set
----------------------------------------------------------------
A Disclosure Statement under Chapter 11 of the Bankruptcy Code was
filed by debtor Magnolia School Products with respect to a Chapter
11 Plan filed on Sept. 8, 2016. Judge Jason D. Woodard ordered
that:
A. The Disclosure Statement filed by the Debtor is conditionally
approved.
B. Oct. 27, 2016, is fixed as the last day for filing written
accpetances or rejection of the Plan.
C. Nov. 3, 2016, at 9:30 a.m. in the Oxford Federal Building,
911 Jackson Avenue, Oxford, MS, is fiexed for the hearing on final
approval of the Disclosure Statement and for the hearing on the
confirmation of the Plan.
D. Oct. 27, 2016, is fixed as the last day for filing and
serving written objections to the Disclosure Statement and
confirmation of the Plan.
Magnolia State School Products filed a Chapter 11 petition (Bankr.
N.D. Miss. Case No. 15-14263) on Nov. 30, 2015, and is represented
by Stephen P. Livingston, Esq.
MAJESTIC AIR: Seeks to Employ Carlsen Law as Special Counsel
------------------------------------------------------------
Majestic Air, Inc., asks the Bankruptcy Court for authority to
employ Miles Carlsen of Carlsen Law Corporation as special
counsel.
The Debtor believes it is necessary to engage the services of
special counsel to represent its rights in two appeals of state
court rulings currently pending before the California Court of
Appeal: Ansett Aircraft Spares & Services v. Cue, et al. (LASC Case
No. BC482166) and Infinity Air v. Lufthansa Technik Philippines, et
al. (LASC Case No. PC051839).
Mr. Carlsen will be compensated at his standard hourly rate of $350
per hour plus reimbursement of necessary expenses.
Mr. Carlsen assured the Court that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code and does not represent any interest adverse to the Debtor and
its estates.
The firm can be reached through:
Miles Carlsen, Esq.
Carlsen Law Corporation
20700 Ventura Blvd., Suite 328
Woodland Hills, California 91364
Tel: (800) 919-7140
Fax: (800) 927-7140
About Majestic Air
Majestic Air, Inc., sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. C.D. Cal. Case No. 16-11538) on May 23,
2016. The petition was signed by Tessie Cue, president. The case
is assigned to Judge Martin R. Barash. The Debtor disclosed total
assets of $3.47 million and total debts of $3.21 million.
MARGHERITA ARVANITES: First Federal, et al., Not Secured Creditors
------------------------------------------------------------------
Margherita Arvanites and Sheila Hall in September 2016 each filed a
supplement to their respective Disclosure Statement and Chapter 11
Plan of Reorganization filed on July 1, 2016.
Creditors listed as Class 2B, 2C, and 2D, First Federal Leasing,
Inc., Ewing Irrigation 25 Products Inc., and Horizon Distributors,
Inc. respectively, held, as of the Petition Date, judgment liens
against real property jointly owned by Sheila Hall and Margherita
Arvanites in the jointly administered Chapter 11 proceedings.
Prior to the Chapter 11 filing, these judgment liens were liens
against real property located at 15131 East Palisades Blvd.,
Fountain Hills, Arizona (the "Property"). During the course of
these jointly administered Chapter 11 proceedings certain Adversary
Proceedings were filed against each of these judgment lien
creditors.
Through the Adversary Proceedings each judgment lien was determined
by the Court to be "void" and, therefore, not a valid lien against
the Property.
Based upon the subsequent voiding of those judgment liens, First
Federal Leasing, Inc., Ewing Irrigation Products Inc., and Horizon
Distributors, Inc., are not secured creditors and are not entitled
to vote in those respective Classes.
Pursuant to the Stipulation of the parties First Federal Leasing,
Inc. (Class 2B) and Ewing Irrigation Products Inc. (Class 2C) are
general unsecured creditors as provided for under Class 7. They
are impaired under that Class 7 and have the right to vote only in
Class 7.
According to Arvanites' Supplement, based upon the Default Judgment
entered against Horizon Distributors, Inc. (Class 2D), Horizon
Distributors is not a secured creditor and is not entitled to vote
in Class 2D. It is, however, a general unsecured creditor as
provided for under Class 7, is impaired under Class 7 and has a
right to vote only in Class 7 in Case Number 2-12-bk-22847.
As it relates to Horizon Distributors (Class 2D), Sheila Hall was
not a party to the State Court action that gave rise to the pre
petition judgment lien and therefore is not obligated for any
monetary claim of this Creditor. As a result, this Creditor will
not receive any distributions under the Chapter 11 Plan of Sheila
Hall and may only seek payment as a general unsecured creditor in
Case No. 12-22847 under Class 7.
Copies of the Supplements to the Debtors' Plans and Disclosure
Statements are available at:
http://bankrupt.com/misc/azb12-22847_141_S_DS_S_Hall.pdf
http://bankrupt.com/misc/azb12-22847_187_S_DS_S_Hall.pdf
http://bankrupt.com/misc/azb12-22847_188_S_DS_S_Hall.pdf
Judge Brenda Martin will hold a hearing to consider confirmation of
the Chapter 11 Plans on Nov. 9, 2016, 11:00 a.m.
About Sheila Hall & Margherita Arvanites
Sheila Hall and Margherita Arvanites sought protection under
Chapter 11 of the Bankruptcy Code (Bankr. D. Ariz. Case No.
12-22842 and 12-22847) on Oct. 18, 2012. The Debtors are
represented by Allan D. Newdelman, P.C.
MARK JEFFERY KLAMRZYNSKI: Disclosure Hearing Set on Nov. 16
-----------------------------------------------------------
Judge Paul Sala of the U.S. Bankruptcy Court for the District of
Arizona will consider approval of the disclosure statement filed by
Mark Jeffrey Klamrzynski at a hearing on November 16, 2016 at 10:00
a.m.
Judge Sala has fixed as the last day for filing written objections
to the Disclosure Statement at five (5) business days prior to the
hearing date set for approval of the Disclosure Statement.
Judge Sala has also ordered that any creditor or interest holder
who wants to participate in voting on any Plan of Reorganization or
to share in any distribution from the Debtor's estate must file a
proof of claim or proof of interest prior to the approval of the
disclosure statement.
The Troubled Company Reporter, on Oct. 6, 2016, reported that the
Debtor filed a plan of reorganization and accompanying disclosure
statement dated Sept. 28, 2016, under which general unsecured
creditors are classified in Class 3, and will receive a pro rata
portion of $50,400, likely to result in a 16.12% recovery of
allowed claims. This class is impaired and is entitled to vote on
confirmation of the Plan.
All payments will be completed before 60 months passes from the
Effective Date of the Plan.
The Plan will be funded from the Debtor's post-confirmation income
from employment and retirement income. Through hard work in his
profession and by restructuring the debt, the Debtor believes he
can fulfill the obligations under the Plan.
The Disclosure Statement is available at:
http://bankrupt.com/misc/azb16-02390-54.pdf
About Mark Jeffrey Klamrzynski
Mark Jeffrey Klamrzynski filed for Chapter 11 bankruptcy protection
(Bankr. D. Ariz. Case No. 16-02390) on March 10, 2016, and is
represented by Kenneth L. Neeley, Esq., and Chris J. Dutkiewicz,
Esq., at Neeley Law Firm, PLC, in Chandler, Arizona.
MCELRATH LEGAL: Taps Elder Law Management as Accountant
-------------------------------------------------------
McElrath Legal Holdings, LLC seeks approval from the U.S.
Bankruptcy Court for the Western District of Pennsylvania to hire
an accountant.
The Debtor proposes to hire Elder Law Management and pay the firm
an hourly rate of $90 for its services.
Joseph Beck of Elder Law Management 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:
Joseph Beck
Elder Law Management
401 Wood Street, 3rd Floor
Pittsburgh, PA 15222
About McElrath Legal Holding
Headquartered in Pittsburgh, Pennsylvania, McElrath Legal Holding,
LLC, filed for Chapter 11 bankruptcy protection (Bankr. W.D. Pa.
Case No. 16-22568) on July 11, 2016, estimating its assets at up to
$50,000 and its liabilities at between $1 million and $10 million.
The petition was signed by Paul McElrath, president.
Judge Carlota M. Bohm presides over the case.
Gary William Short, Esq., who has an office in Pittsburgh,
Pennsylvania, serves as the Debtor's bankruptcy counsel.
MCNEILL PROPERTIES: Unsecureds to Get $4,657 For 60 Months
----------------------------------------------------------
McNeill Properties V, LLC, filed with the U.S. Bankruptcy Court for
the Eastern District of Pennsylvania a plan of reorganization and
accompanying disclosure statement estimating that unsecured
creditors will receive 100% of their claims in monthly payments of
$4,657.82 on a pro rata basis for 60 months commencing on the
effective date of the plan.
As of the Petition Date, the aggregate alleged amount due to The
Provident Bank was $9,890,115. The Debtor disputes the calculation
of the Provident Claim.
The Plan will be funded through the Debtor's ongoing operations.
The Debtor has taken steps to increase operations and profitability
at the Lawrenceville Gym. While the Debtor continues to manage
University Athletics Management, LLC, the Debtor has also grown its
cheerleading program by approximately 300% by strategically
acquiring its competitor's customers. Furthermore, the Debtor has
taken steps to add revenue through full utilization of the
Property. The Debtor is in the process of negotiating with a cell
tower provider to add a temporary tower, resulting in approximately
$20,000 annually in net profit.
A full-text copy of the Disclosure Statement dated October 7, 2016,
is available at http://bankrupt.com/misc/paeb16-14944-91.pdf
About McNeill Properties V
McNeill Group, Inc. and McNeill Properties V, LLC filed chapter 11
petitions (Bankr. E.D. Pa. Case Nos. 16-14943 and 16-14944) on
July
12, 2016. The petitions were signed by Edward J. McNeill, Jr.,
president.
The Debtors are represented by Albert A. Ciardi, III, Esq., at
Ciardi Ciardi & Astin, P.C. The cases are assigned to Judge Jean
FitzSimon (16-14943) and Judge Ashely M. Chan (16-14944).
The Debtors each estimated assets and liabilities of $10 million
to
$50 million at the time of the filing.
MEGA AGROCENTRO: Seeks to Hire Jose Calderon as New Legal Counsel
-----------------------------------------------------------------
Mega Agrocentro Los Colobos, Inc. seeks approval from the U.S.
Bankruptcy Court for the District of Puerto Rico to hire a new
legal counsel.
The Debtor proposes to substitute Jose Fuentes Calderon, Esq., in
place of Jesus Santiago Malavet, Esq., at Santiago, Malavet &
Santiago Law Offices P.S.C.
Mr. Calderon will be paid an hourly rate of $175 for his services,
which include advising the Debtor regarding its duties and
negotiating with creditors to formulate a Chapter 11 plan of
reorganization.
In a court filing, Mr. Calderon disclosed that he is a
"disinterested person" as defined in section 101(14) of the
Bankruptcy Code.
Mr. Calderon's contact information is:
Jose R. Fuentes Calderon, Esq.
P.O. Box 2419
Isabela, PR 00662
Phone: 787-608-5967
Email: jfuentes@fuenteslawpr.com
About Mega Agrocentro
Mega Agrocentro Los Colobos, Inc. sought protection under Chapter
11 of the Bankruptcy Code (Bankr. D.P.R. Case No. 16-00652) on
January 29, 2016. The petition was signed by Ruth N. Monge
Santana, president.
At the time of the filing, the Debtor estimated assets of less than
$50,000 and liabilities of less than $500,000.
NEW HOPE: Disclosures Okayed, Plan Confirmation Hearing on Nov. 10
------------------------------------------------------------------
Judge Brenda K. Martin of the U.S. Bankruptcy Court for the
District of Arizona will consider approval of the Chapter 11 plan
proposed by New Hope Behavioral Health Center, Inc., at a hearing
on November 10, 2016 at 1:30 p.m.
Judge Martin also ordered that the last day for filing and serving
written objections to confirmation of the Plan is fixed at seven
days prior to the hearing set for confirmation of the plan.
The Troubled Company Reporter has reported earlier that the
Debtor's Plan disclosed an allowed Class 6 claims with a total of
$266,604.47. Under the Plan, holders of these claims will be paid
monthly over a period of 90 months in the total amount of
approximately $202,986.80. New Hope estimates that Class 6
claimants will receive payment of around 65-76% of their claims.
Class 6 is impaired.
The First Amended Disclosure Statement is available at
http://bankrupt.com/misc/azb13-14261-136.pdf
About New Hope
New Hope Behavioral Health Center, Inc., filed for Chapter 11
bankruptcy protection (Bankr. D. Ariz. Case No. 13-14261) on Aug.
19, 2013, estimating its assets at up to $50,000 and its
liabilities at between $500,001 and $1 million. James M. McGuire,
Esq., at Davis Miles McGuire Gardner, PLLC, serves as the Debtor's
bankruptcy counsel.
NIGHTINGALE HOME: Has Until Nov. 7 to File Plan of Reorganization
-----------------------------------------------------------------
Judge James M. Carr of the U.S. Bankruptcy Court for the Southern
District of Indiana extended Nightingale Home Healthcare, Inc.'s
exclusive periods to file a plan of reorganization and solicit
votes in connection with the plan, to November 7, 2016 and January
4, 2017, respectively.
The Debtor previously sought the extension of its exclusive
periods, relating that a mediation conference with its primary
administrative expense creditors and parent company was scheduled
to take place on September 19, 2016, and that the Debtor
anticipated proposing a plan of liquidation or structured dismissal
following the mediation conference.
The Debtor contended that since the commencement of the Bankruptcy
Case, it had been engaged in litigation regarding its Medicare
Provider Agreement, an interim manager had been appointed to manage
the day-to-day business operations of the Debtor, a Patient Care
Ombudsman had been appointed to monitor the quality of care being
provided to the Debtor's patients, and appointment of an Examiner
had been ordered to investigate certain allegations made against
the Debtor.
About Nightingale Home Healthcare, Inc.
Nightingale Home Healthcare, Inc., filed a Chapter 11 petition
(Bankr. S.D. Ind. Case No. 15-10099) on Dec. 10, 2015. The
petition was signed by Dr. Dev A. Brar, president. The Debtor is
represented by Wendy D. Brewer, Esq., at Jefferson & Brewer, LLC.
The Debtor estimated assets at $0 to $50,000 and liabilities at
$100,001 to $500,000 at the time of the filing.
NJOY INC: Seeks to Employ Ordinary Course Professionals
-------------------------------------------------------
NJOY, Inc. has filed a motion seeking approval from the U.S.
Bankruptcy Court for the District of Delaware to hire professionals
used in the ordinary course of business.
The request, if granted, would allow the Debtor to hire "ordinary
course professionals" without filing separate employment
applications. The Debtor seeks to employ these OCPs:
* Crowe Horwath LP
* Slalom, LLC d/b/a Two Degrees
* Weiss & Moy, P.C.
* Bookoff McAndres PLLC
* Kleinfeld Kaplan & Becker
* DLA Piper
In the same filing, the Debtor also proposed to pay, without formal
fee application to the court, 100% of the fees of each OCP. Each
OCP would be subject to a cap of $50,000 per month.
To ensure that none of the OCPs has connections with the Debtor or
any of its creditors, each OCP will be required to file a verified
statement made pursuant to Bankruptcy Rule 2014, according to court
filings.
About NJoy Inc.
Headquartered in Scottsdale, Arizona, NJOY sells e-cigarettes and
vaping products to wholesalers, distributors and retailers. The
Company was the first major ENDS company to offer products across
all form factors: disposable and rechargeable cigalikes, open
system e-liquids and vaping devices, and advanced closed system
e-liquids. The Debtor has no in-house manufacturing capabilities.
Its hardware is sourced from two major suppliers in China. The
Debtor sources e-liquids from facilities based in the United
States. As of Sept. 9, 2016, the Debtor had a total of 15
employees.
NJOY filed a voluntary petition under Chapter 11 of the Bankruptcy
Code (Bankr. D. Del. Case No. 16-12076) on Sept. 16, 2016. The case
is assigned to the Hon. Christopher S. Sontchi. The petition was
signed by Jeffrey Weiss, general counsel and interim president.
NJOY has hired Gellert Scali Busenkell & Brown, LLC as counsel,
Sierraconstellation Partners, LLC as financial advisor,
Cohnreznick
Capital Markets Securities Investment LLC as investment banker.
No official committee of unsecured creditors has been appointed in
the case.
OLMOS EQUIPMENT: Court Orders Ch. 11 Examiner Appointment
---------------------------------------------------------
Judge Craig A. Gargotta of the U.S. Bankruptcy Court for the
Western District of Texas entered an order directing the U.S.
Trustee to appoint a Chapter 11 Examiner for Olmos Equipment, Inc.
The Chapter 11 Examiner is required to:
(a) review the Debtor's Motion for Authority to Enter Into
Subcontract with Xtreme Site Services, LLC, and to Lease Equipment,
and file a written report with the Court as soon as practicable
explaining: (i) whether the Examiner believes granting the motion
would or would not be in the best interests of creditors and the
estate; (ii) whether the proposed agreements should be modified;
and, (iii) whether the Examiner believes there are better options
to the estate for the completion of the pending jobs;
(b) explain the basis for his recommendation and be available
to testify at any hearing on the motion regarding the information
set in the report;
(c) review the Debtor's financial transactions during the case
and file reports no less than every 30 days until a plan is
confirmed, the case is converted to chapter 7, or the case is
dismissed;
(d) explain whether in post-petition the debtor is collecting
all monies owed, allocating all monies properly, and paying its
obligations as appropriate;
(e) attach to each report statements on each job for which the
debtor has received funds, showing how much was received and if any
of the money has been paid specifically for that job, how much has
been paid and to what entity; and,
(f) include in his reports a statement detailing any
information or findings which the Examiner believes the creditors
and the Bankruptcy Court should be advised of including any fact
ascertained during his investigation pertaining to fraud,
dishonesty, incompetence, misconduct, mismanagement, or
irregularity in the management of the affairs of the debtor.
The Debtor is required to assure that the $20,000 paid to them is
separately maintained to assure it is available for payment of the
Examiner when the Examiner's fees and expenses are approved.
About Olmos Equipment
Olmos Equipment Inc. filed a chapter 11 petition (Bankr. W.D. Tex.
Case No. 16-51834) on Aug. 12, 2016. The petition was signed by
Larry Struthoff, president. The Debtor is represented by William
B. Kingman, Esq., at the Law Offices of William B. Kingman, PC. The
case is assigned to Judge Craig A. Gargotta. The Debtor estimated
assets at $1 million to $10 million and liabilities at $10 million
to $50 million at the time of the filing.
PARKWAY PROPERTIES: Moody's Withdraws Ba1 Issuer Rating Over Merger
-------------------------------------------------------------------
Moody's Investors Service has withdrawn its issuer rating for
Parkway Properties, Inc. following the Oct. 6, 2016, closing of its
merger with Cousins Properties Incorporated. On Oct. 7, 2016,
Cousins completed the spin-off of the combined company's
Houston-based assets into a new, publicly-traded office REIT called
Parkway, Inc.
This rating was withdrawn:
Parkway Properties, Inc. -- Issuer rating, withdrawn; previously
rated Ba1
Outlook Actions:
-- Outlook changed to Rating Withdrawn from Stable
Cousins Properties Incorporated (NYSE: CUZ) is a real estate
investment trust (REIT) based in Atlanta, Georgia that actively
invests in top-tier urban office assets and opportunistic mixed-use
developments in Sunbelt markets.
PAUL F. WALLACE: Files First Amended Disclosure Statement
---------------------------------------------------------
Debtors A&T Holding Corp., Ben Franklin Services Corp., Martindale
Corporation, and MOA-Cody, L.L.C. and the Chapter 11 Operating
Trustee of the estate of the late Paul F. Wallace submitted filed a
First Amended Disclosure Statement in connection with their First
Amended Chapter 11 Plan dated as of Sept. 1, 2016.
The Amended Disclosure Statement only contains minor changes from
the previous iteration.
The Plan is an aggregation of five separate plans, which provide:
-- Holders of unsecured claims totaling $4.8 million against
Wallace are slated to receive an initial distribution of at least
50% of their allowed claims and, from time to time after the
Effective Date, receive periodic ratable distributions in an
aggregate amount of up to 100% of their allowed claims. The
projected recovery is 70% to 75%.
-- Holders of unsecured claims totaling $1,000 against A&T;
unsecured claims totaling $10,500 against BFSC; unsecured claims
totaling $380,000 against Martindale; and holders of unsecured
claims totaling $12,500 against MOA will receive a distribution
from available cash equal 100% of their allowed claims, without
interest, on the Effective Date.
The Plan contemplates the continued orderly liquidation of the
Debtors' assets, the monetization of the Debtors' remaining assets,
and the distribution of funds maintained in the Estate Accounts to
holders of Allowed Claims against each of the Debtors' Estates in
accordance with the terms of the Plan. Each of the Entity Debtors
will be dissolved upon liquidation of their respective assets and
payment of their respective Creditors in accordance with the Plan.
A copy of the First Amended Disclosure Statement is available at:
http://bankrupt.com/misc/nysb10-22998_448_Am_DS_P_Wallace.pdf
About Paul Wallace and His Companies
Paul F. Wallace was an executive and investor in several real
estate related projects, including motels and hotels. Wallace was
the sole shareholder of co-Debtors, Ben Franklin Services Corp.
("BFSC"), and Martindale Corporation ("Martindale"). BFSC is the
sole member of MOA-Cody, L.L.C.. Martindale is the sole
shareholder
of A&T Holding Corp. and owns over 80% of the stock in The
Broadstone Group, Inc. ("Broadstone"), a non-debtor entity.
Wallace
was the President of Broadstone, which indirectly owns
approximately 90% of MOA Hospitality, Inc. ("MOAH"). Wallace was
the Chairman and Chief Executive Officer of MOAH.
A&T held a 20% membership Interest in non-debtor Arizona & 20th
LLC, which owns the 77-room boutique hotel The Ambrose Hotel
located in Santa Monica, California. Martindale owns 1% of RS
Hospitality, LLC, which holds a nominal title to luxury hotel The
Cody Hotel located at 232 West Yellowstone Avenue, Cody, Wyoming.
As of October 2009, the Debtors held beneficial ownership
interests
in four additional hotel properties, including, (1) the Super 8
Motel located at 750 South Highway 89, Jackson, Wyoming; (2) the
Super 8 Motel located at 730 Yellowstone Road, Cody, Wyoming; (2)
the Super 8 Motel located at 505 W. Appleway, Coeur d'Alene,
Idaho;
and (3) the Super 8 located at 4800 Preston Highway, Louisville,
Kentucky.
Paul F. Wallace, A&T Holding, BFSC, Martindale, MOA-Cody and MOAH
sought Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No.
10-22998) on May 20, 2010.
A&T estimated $1,000,001 to $10,000,000 in assets and $100,001 to
$500,000 in debt.
Wallace died on Dec. 31, 2013. Thereafter, the Court determined
that it would be in the best interests of the Wallace Chapter 11
Estate to appoint a Chapter 11 Trustee. By Order dated Feb. 14,
2014, Marianne T. O'Toole was appointed the Chapter 11 Trustee of
the Wallace Chapter 11 Estate.
The Chapter 11 Trustee is represented by LaMonica Herbst &
Maniscalco, LLP. The Debtors' counsel is Diconza Traurig Kadish
LLP.
PEABODY ENERGY: Obtains DIP Lender Approval to Amend Milestones
---------------------------------------------------------------
Peabody Energy on Oct. 11, 2016, disclosed that it has obtained
approval from required debtor-in-possession (DIP) lenders to amend
several milestones related to the time for a decision on what is
known as the CNTA issue; the company's deadline for filing of a
plan of reorganization/disclosure statement; and the date targeted
for court approval of the disclosure statement.
The company also received DIP lender consent to an amendment to the
intercompany loan facility related to the Australian platform that
allows for the potential sale of some Australian assets. Peabody
has stated that its Australian metallurgical and thermal coal
platforms remain core to the company, though Peabody is exploring
potential sale of selected Australia assets as part of its ongoing
plan to optimize its portfolio.
The extension approval recognizes the constructive discussions that
have been occurring as part of the Chapter 11 process. The company
now will file a related submission for court approval. If granted,
the extensions will take the CNTA-decision deadline and the
deadline to file an acceptable plan of reorganization/disclosure
statement to Nov. 23 and Dec. 14, respectively, from the original
DIP financing deadlines of Oct. 11 and Nov. 9. The company would
also modify the related deadline for receiving court approval for
the disclosure statement to Jan. 31, 2017 from its original date of
Jan. 8, 2017.
Peabody has informally discussed the concept with other creditors
and received favorable feedback on the extensions. The company
intends to use this additional time to expand discussions with key
stakeholders around issues that, when resolved, would greatly
advance consensus on the company's plan of reorganization. Peabody
believes that an extension of these milestone dates is appropriate
to provide the best opportunity to bring these discussions to
successful conclusion.
Peabody still looks to complete its reorganization within the
12-month period originally contemplated for Chapter 11 cases.
Absent meaningful progress in their continuing mediation, the
company is not expecting to seek further extensions of the
CNTA-decision milestone.
Since filing for Chapter 11 protection in April 2016, the company
has completed its business plan, obtained approval on multiple
motions regarding the Chapter 11 process and continued to take
numerous steps to strengthen the business.
About Peabody Energy Corporation
Headquartered in St. Louis, Missouri, Peabody Energy Corporation
claims to be the world's largest private-sector coal company. As
of Dec. 31, 2014, the Company owned interests in 26 active coal
mining operations located in the United States (U.S.) and
Australia. The Company has a majority interest in 25 of those
mining operations and a 50% equity interest in the Middlemount Mine
in Australia. In addition to its mining operations, the Company
markets and brokers coal from other coal producers, both as
principal and agent, and trade coal and freight-related contracts
through trading and business offices in Australia, China, Germany,
India, Indonesia, Singapore, the United Kingdom and the U.S.
Peabody posted a net loss of $1.988 billion for 2015, wider from
the net loss of $777 million in 2014 and the $513 million net loss
in 2013.
At Dec. 31, 2015, the Company had total assets of $11.02 billion
against $10.1 billion in total liabilities, and stockholders'
equity of $919 million.
On April 13, 2016, Peabody Energy Corp. and 153 affiliates filed
voluntary petitions for relief under Chapter 11 of the United
States Bankruptcy Code. The 154 cases are pending joint
administration before the Honorable Judge Barry S. Schermer under
Case No. 16-42529 (Bankr. E.D. Mo.).
As of the Petition Date, PEC has approximately $4.3 billion in
outstanding secured debt obligations and $4.5 billion in
outstanding unsecured debt obligations.
The Debtors tapped Jones Day as general counsel; Armstrong,
Teasdale LLP as local counsel; Lazard Freres & Co. LLC and
investment banker Lazard PTY Limited as investment banker; FTI
Consulting, Inc., as financial advisors; and Kurtzman Carson
Consultants, LLC, as claims, ballot and noticing agent.
The Office of the U.S. Trustee on April 29, 2016, appointed seven
creditors of Peabody Energy Corp. to serve on the official
committee of unsecured creditors. The Committee retained Morrison
& Foerster LLP as counsel, Spencer Fane LLP as local counsel,
Curtis, Mallet-Prevost, Colt & Mosle LLP as conflicts counsel,
Blackacre LLC as its independent expert, and Berkeley Research
Group, LLC, as financial advisor.
PETROQUEST ENERGY: Terminates EVP - Business Development
--------------------------------------------------------
PetroQuest Energy, Inc., and Tracy Price, the Company's executive
vice president - business development and land, mutually agreed to
terminate Mr. Price's employment without cause, effective as of
Oct. 7, 2016.
Mr. Price will receive severance benefits consistent with the
provisions regarding termination of employment without cause
contained in his executive employment agreement with the Company,
dated as of May 8, 2012.
About PetroQuest
PetroQuest Energy, Inc. is an independent energy company engaged in
the exploration, development, acquisition and production of oil and
natural gas reserves in East Texas, Oklahoma, South Louisiana and
the shallow waters of the Gulf of Mexico. PetroQuest's common
stock trades on the New York Stock Exchange under the ticker PQ.
As of June 30, 2016, Petroquest had $209 million in total assets,
$433 million in total liabilities, and a total stockholders'
deficit of $225 million.
In its quarterly report for the period ending June 30, 2016, the
Company stated, "Our substantially decreased level of capital
spending has had and is expected to continue to have a negative
impact on our production and cash flow from operating activities.
We expect production to continue to decline throughout 2016 and
when combined with current commodity prices and our existing cost
structure, including 10% interest expense on the $280 million of
debt represented by our 2017 Notes and 2021 Notes, we believe that
we will continue to incur significant losses and negative cash flow
from operating activities for the remainder of 2016. In addition,
$136 million of the indebtedness represented by our 2017 Notes will
mature on September 1, 2017 and would be reflected as a current
liability on our September 30, 2016 balance sheet if not refinanced
prior to the filing of our Quarterly Report on Form 10-Q for the
quarterly period ended September 30, 2016, which would raise
substantial doubt about our ability to continue as a going
concern," the Company stated in its quarterly report for the period
ended June 30, 2016.
"We are evaluating additional sources of liquidity including asset
sales, joint ventures, exchange offers and alternative financing
arrangements to replace the Credit Agreement, but there is no
assurance that these sources will provide sufficient, if any,
incremental liquidity. We are also evaluating various options to
address the September 2017 maturity of our 2017 Notes as well as
assessing our overall capital structure. These options include
additional public or private exchanges of 2017 Notes for new
secured debt and/or common stock, refinancing the 2017 Notes with
unsecured debt and/or common stock as well as a broader
restructuring of our 2017 and 2021 Notes. To assist the Board of
Directors and management team in evaluating these options, we have
retained Jefferies LLC and Seaport Global as our financial advisors
and Porter Hedges LLP as our legal advisor. There is no assurance
that any refinancing or debt or equity restructuring will be
possible or that additional equity or debt financing can be
obtained on acceptable terms, if at all. If we are unable to
improve our liquidity position, and refinance or restructure our
debt, we may seek bankruptcy protection to continue our efforts to
restructure our business and capital structure. As a part of that
process, we may have to liquidate our assets and may receive less
than the value at which those assets are carried on our
consolidated financial statements."
* * *
As reported by the TCR on Oct. 11, 2016, S&P Global Ratings
lowered its corporate credit rating on Lafayette, La.-based
PetroQuest Energy Inc. to 'SD' from 'CC'.
PetroQuest Energy carries a Caa3 corporate family rating from
Moody's Investors Service.
PHILADELPHIA SCHOOL DISTRICT: Fitch Affirms 'BB-' IDR
-----------------------------------------------------
Fitch Ratings has assigned an 'A+' rating to the following bonds
issued for the school district of Philadelphia (the district) based
on the Pennsylvania School Credit Enhancement Direct-Pay Intercept
Program:
-- $573.315 million State Public School Building Authority
(Commonwealth of Pennsylvania) (SPSBA) school lease revenue
refunding bonds (the school district of Philadelphia
project) series 2016A.
Additionally, Fitch Ratings has assigned an 'A+' rating to the
following bonds issued by the district based on the Pennsylvania
School Credit Enhancement Intercept Program:
-- $90.555 million school district of Philadelphia general
obligation (GO) bonds series D of 2016;
-- $146 million school district of Philadelphia GO bonds series
E of 2016 (qualified school construction bonds - federally
taxable - direct subsidy);
-- $580.165 million school district of Philadelphia GO
refunding bonds series F of 2016.
The bonds are scheduled to be sold via negotiated sale the week of
October 19. Proceeds will be used to refund certain outstanding
bonds and pay for various capital projects.
Concurrently, Fitch has assigned an underlying rating of 'BB-' to
the series 2016 bonds and has affirmed this rating on approximately
$3.1 billion of the district and authority's outstanding bonds, and
has affirmed the district's 'BB-' Issuer Default Rating (IDR).
The Rating Outlooks for the commonwealth's programs are Stable,
reflecting the Stable Outlook on the commonwealth's IDR. The Rating
Outlooks for the underlying district and authority's ratings have
been revised to Stable.
SECURITY
The bonds issued by the authority are special limited obligations
of the authority. For these bonds, payments from the State
Treasurer are made directly to the Trustee on the last Thursday of
April and October of each year, in advance of lease rental payments
due on May 15 and November 15, and debt service payments on June 1
and December 1. The district has covenanted that it will include in
its budget appropriations for payments to the authority. For these
payments, the district irrevocably has pledged its full faith,
credit and taxing power. All of the authority and GO bonds are
secured by protections under the Pennsylvania School Credit
Enhancement Law as well as the district's full faith and credit and
taxing power.
The underlying rating on the bonds is based on the district's full
faith and credit GO pledge. Various statutory mechanisms direct
property tax revenues first to the GO bonds fiscal agent on a daily
basis. But Fitch does not assess the revenues as special revenues
under chapter nine of the federal bankruptcy code and they are
therefore not exempt from the automatic stay in a bankruptcy filing
and do not warrant a rating above that of the district's IDR.
KEY RATING DRIVERS
The 'BB-'IDR reflects the school district of Philadelphia (SDP)'s
constrained budgetary environment with limited independent ability
to materially alter its fiscal profile. The current rating level
implies an elevated vulnerability to default risk, particularly in
the event of adverse changes in conditions. Fitch believes that a
consistent history of support from other levels of government
provides a modicum of comfort that the district will continue to
meet its financial obligations. While the Rating Outlook has been
revised to Stable from Negative, rating transition risk is elevated
at below-investment grade levels.
Over the past several years, the district has taken multiple steps
to reduce recurring spending and has worked with external
stakeholders to boost revenues. But further expense reductions are
likely to directly affect core service delivery; in fact, the
district has taken steps to use new revenues to restore some prior
year cuts to address such concerns. SDP's management, including a
new chief financial officer, are taking important steps to address
these limitations but their options are limited absent external
cooperation, particularly from the commonwealth and city.
Economic Resource Base
Philadelphia serves as a regional economic center in the northeast,
with a stable employment base weighted toward the higher education
and healthcare sectors. Jobs expansion since the recession has been
steady and strong, but low wealth levels and weak population growth
persist and limit growth prospects. The population is estimated at
1.5 million.
Revenue Framework: 'bbb' factor assessment
Fitch expects the school district of Philadelphia's (SDP) revenues
will grow annually near the rate of inflation with key components
including the property tax and subsidies from the commonwealth.
SDP's lack of any material independent legal revenue-raising
capability limits the revenue framework assessment.
Expenditure Framework: 'bbb' factor assessment
Expenditure pressures are significant but the district retains some
flexibility to manage their growth with moderate carrying costs.
Pension expense and charter school payments in particular drive
Fitch's expectations. Commonwealth reimbursements offset a
significant share of pension spending. Fitch views charter school
spending as SDP's most critical expenditure challenge, and will
closely monitor efforts to moderate the current growth trajectory.
The labor environment also poses limitations on expenditure
flexibility.
Long-Term Liability Burden: 'aa' factor assessment
Debt and unfunded pension liabilities present only a moderate
burden on the district's economic resource base. OPEB liabilities
are minimal, with the district providing no healthcare benefits for
retirees or dependents.
Operating Performance: 'bb' factor assessment
The district has built up modest budgetary, cash-basis reserves in
recent years with expense management and successful negotiation of
revenue support from the city and commonwealth. But those reserves
will likely be drawn down within several years. SDP retains very
limited financial flexibility and would be stressed in the event of
an economic downturn, absent assistance from the city or
commonwealth. Both entities have previously stepped in to support
the district. Fitch anticipates similar support going forward, but
the timing and extent is uncertain as Philadelphia and Pennsylvania
face their own fiscal constraints.
RATING SENSITIVITIES
Sustainable Revenue Improvement: SDP has successfully negotiated
several revenue increases in recent years with the city and
commonwealth including a permanent cigarette tax, the first $120
million of the city's 1% sales tax, and increases in the property
tax rate. Establishment of a long-term revenue solution that more
fully addresses the district's anticipated expenditure demands
could improve Fitch's assessment of the district's revenue
framework and operating performance.
Shift in Charter School Expenditures: Payments to charter schools
have been, and will likely continue to be, the most significant
driver of the district's expenditures. A material change in the
mandatory per pupil payments SDP makes to charter schools, either
through changes in enrollment patterns or in the structure of the
payments themselves, could alter Fitch's view of the district's
expenditure growth or financial resilience.
CREDIT PROFILE
The School District of Philadelphia is the nation's eighth largest
school district and the largest in the commonwealth, with fiscal
year 2016 enrollment of 202,686 students, including charter school
students. Total enrollment has been relatively stable in recent
years but district school and charter school enrollment continue to
diverge. Charter school enrollment has grown approximately 8% on
average annually since fiscal 2012, while district public school
enrollment declined an average 3% each year. Recent data indicates
a possible shift in enrollment with district enrollment losses
narrowing and stabilizing in fiscal 2016, while charter school
enrollment tapered off and actually declined last year. The
district reports recent policy changes may be driving down cyber
charter enrollment, but enrollment at standard charter schools also
dipped slightly last year. Fitch will continue to monitor
enrollment data to assess whether there is a sustainable and
material shift in enrollment patterns.
Revenue Framework
Commonwealth subsidies comprise the majority of SDP's revenues,
with various locally provided revenues also making up a significant
share. Pennsylvania's funding comes in the form of direct aid for
education and reimbursement for a substantial share of annual
pension costs. Local revenues consist mainly of a property tax and
certain other taxes collected by the city of Philadelphia, and an
annual allocation of $120 million of the sales tax levied within
the city.
Fitch anticipates commonwealth subsidies to the district will grow
modestly, near the rate of inflation. Unlike many other states, the
vast majority of local school aid is not distributed on a per pupil
basis and is not directly tied to enrollment. Pennsylvania has only
decreased annual funding to SDP once in the past three decades.
There were multiple decreases in basic education funding (BEF, the
largest component) including just after the last recession, but the
commonwealth continued to fund a share of pension expense and
overall state funding generally increased. Pennsylvania faces its
own fiscal challenges to restore structural balance, tempering the
trajectory of future increases in district subsidies.
Local revenues should grow at a similar pace, particularly
following recent increases agreed to by the city and commonwealth.
Property taxes are the main component (roughly two-thirds) and
Fitch views prospects for the city's tax base positively. Some
local sources are more volatile, and others flat such as the $120
million annual share of the city sales tax.
SDP retains essentially no independent legal ability to raise
revenues, relying on external stakeholders (primarily the
commonwealth and city) to authorize and collect funds that are
transferred to the district.
Fitch notes that SDP has been able to negotiate increases in
revenues with both the commonwealth and city, particularly in the
last several years. Most recently the commonwealth permanently
extended a cigarette tax collected for the school district by the
state department of revenue that would have expired at the end of
fiscal 2019 and added a floor for district receipts to offset the
volatility of the narrow base. These changes will provide
substantial fiscal support for SDP, but will address only
one-fourth of the projected five-year financial plan cumulative
budget gap.
Expenditure Framework
The district's largest expense is for personnel, particularly
teachers. Charter school payments are the second largest item.
Through aggressive expenditure reduction, SDP brought down central
administrative costs which now represent approximately 3% of
spending - the remainder goes towards direct supports for
individual schools, including capital financings.
The district's five-year plan projects expenditure growth at nearly
twice the rate of revenue growth. Fitch anticipates actual
performance to be more balanced in light of recent revenue
enhancements (such as the permanent extension and establishment of
a revenue floor for the cigarette tax ) not currently reflected in
the plan. But Fitch anticipates expenditure growth will exceed
expected revenue growth by a wide margin, absent significant policy
changes. Pension expenses and charter schools have been the primary
historical drivers. Growth in pensions will continue but should
moderate as the district's Public School Employees Retirement
System (PSERS) contributions have reached full actuarially
recommended levels this fiscal year after several years of steep
ramp-up. SDP currently projects charter school growth to maintain a
rapid pace. Under current law, the district makes a per-pupil
payment to charter schools for each resident student enrolled in a
charter. Fitch views the growth in charter school enrollment as the
district's most pressing expenditure challenge.
Despite the rapid escalation in pension costs, SDP's carrying costs
remain moderate. Fitch anticipates the growth in pension expense to
continue, but at a slower pace in coming years based on the
district's five-year financial plan projections, which are in turn
based on guidance from PSERS. The carrying cost metric somewhat
overstates the district's burden as the commonwealth reimburses SDP
for at least 50% of annual pension expense. The reimbursement is
based on a statutory formula tied to each school district's
property values and personal income.
A difficult labor environment, with the teachers union operating
without a contract for three years, is a negative factor. The
district's controlling board, the School Reform Commission (SRC),
had attempted to impose contractual terms but state courts ruled
against the SRC. Most other unionized employees are under contract.
The most recent settlement with the largest non-teacher unit
provides a measure of predictability, but also requires steady wage
increases after several years of relatively austere terms under
prior contracts. As an additional limitation on expenditure
flexibility, per-pupil charter school payments are generally
outside of the district's direct control and are likely to continue
their steady escalation in the current statutory framework.
A very modest decline in charter school enrollment last year (and
hence per pupil payments from the district), and apparent
stabilization in traditional public school enrollment, could signal
some relief in this expense item. But it is too early to determine
if the enrollment stabilization will become a trend. Fitch notes
positively that SDP is engaging with charter school leaders in an
effort to craft a sustainable statutory and regulatory framework
that could provide more fiscal stability for the district. Fitch
will monitor the district's progress and determine whether any such
changes materially improve the agency's assessment of SDP's
expenditure framework and operating performance.
Long-Term Liability Burden
SDP's long-term liability burden is moderate at 15.8% of personal
income as of fiscal 2015 (year ended June 30), weighted towards
direct and overlapping debt (issued by the contiguous city). Most
debt is for capital needs, but the district has occasionally
pursued explicit deficit financing to manage budgetary stress. The
current five-year plan envisions no deficit bonds and moderate
capital issuance in line with historical trends. Regarding
overlapping debt, Fitch anticipates the new mayoral administration
will moderately increase the city's outstanding debt to support
specific initiatives - newly approved revenues will support debt
service. Substantial issuance without expected accompanying
economic growth could pressure the assessment of SDP's long-term
liability burden.
The unfunded pension liability is roughly one-third of the total
burden. The district's pension funding is determined by
commonwealth statutes that dictated a ramp-up to full actuarial
recommendations over several years - fiscal 2017 is the first year
the statutes provide for a full actuarially recommended
contribution to PSERS. The pension liability could moderate over
the long term if actuarial assumptions are met and the statutory
requirements for full actuarially determined funding remain in
place.
Changes to PSERS and the commonwealth's retirement system for its
own employees have been discussed for several years by
Pennsylvania's legislative and administration leadership - the
terms are wholly outside of the district's control as this is a
statewide plan. Given the current scope of proposed changes, Fitch
does not anticipate any such structural reforms would reduce the
liability to a level that would improve Fitch's assessment of the
district's long-term liability burden.
The district will eliminate all variable rate debt exposure with
the refunding components of the proposed transaction, which Fitch
views positively as it eliminates an element of risk. SDP does
remain counterparty to two swaps related to series 2003 State
Public School Building Authority lease revenue bond transactions -
the district's exposure is limited as it retains sole authority to
terminate the swaps and faces no collateral posting requirements.
Operating Performance
With limited inherent budget flexibility, the district retains
minimal gap-closing capacity. SDP has only a modest budgetary fund
balance and essentially no balance on an audited GAAP basis, and
would face significant difficulty operating during a downturn
without assistance from external stakeholders. Fitch notes the
commonwealth, city, and federal government (through the federal
stimulus act) have historically stepped in to provide the district
with sufficient resources to maintain operations. Similar responses
are likely in the event of another downturn, particularly from the
commonwealth and city. Both entities face their own fiscal
challenges and Fitch anticipates their capacity to provide
assistance would be adequate but limited in scope.
SDP's budgetary management practices are sound but limited by
fiscal constraints. The district generally meets demands for
required funding such as statutory pension requirements. Even
during the fiscal 2016 commonwealth budget impasse when SDP was
without most state funding for nine months, the district only
delayed one month of charter school payments. To achieve balance in
recent years and establish a modest budgetary reserve, the district
relied on a mix of significant structural expense reductions,
successful negotiation of recurring revenue increases from the
commonwealth and city, and certain short-term budgetary effects.
The short-term effects included difficulty in hiring for a
significant number of teacher vacancies- the district acknowledges
such events are not sustainable and has already filled most
vacancies going into the current school year.
The district's comparatively narrow liquidity profile is bolstered
by consistent marketplace access for cash flow borrowing given the
timing difference of revenues and expenses in a fiscal year - SDP
has issued public or privately placed tax and revenue anticipation
notes for many years, supported by state aid payments that provide
multiples of coverage. The district relies heavily on the credit
enhancement offered by Pennsylvania's intercept provisions for
school aid when accessing credit markets. The fiscal 2016
commonwealth budget impasse led some marketplace participants to
question the value of the provisions - recent legislation addressed
those concerns and provides for commonwealth general fund money to
make intercept-eligible debt service payments in the event of
another budget impasse.
PHILADELPHIA SCHOOL DISTRICT: Moody's Rates GO Bonds 'Ba3'
----------------------------------------------------------
Issue: General Obligation Bonds, Series F of 2016; Rating: Ba3;
Rating Type: Underlying LT; Sale Amount: $621,750,000; Expected
Sale Date: 10/19/2016; Rating Description: General Obligation;
Issue: General Obligation Bonds, Series F of 2016; Rating: A2;
Rating Type: Enhanced LT; Sale Amount: $621,750,000; Expected Sale
Date: 10/19/2016; Rating Description: General Obligation;
Issue: School Lease Revenue Refunding Bonds (The School District of
Philadelphia Project) Series 2016A; Rating: Ba3; Rating Type:
Underlying LT; Sale Amount: $560,515,000; Expected Sale Date:
10/19/2016; Rating Description: General Obligation;
Issue: School Lease Revenue Refunding Bonds (The School District of
Philadelphia Project) Series 2016A; Rating: A2; Rating Type:
Enhanced LT; Sale Amount: $560,515,000; Expected Sale Date:
10/19/2016; Rating Description: General Obligation;
Issue: General Obligation Bonds, Series D of 2016; Rating: Ba3;
Rating Type: Underlying LT; Sale Amount: $92,095,000; Expected Sale
Date: 10/19/2016; Rating Description: General Obligation;
Issue: General Obligation Bonds, Series D of 2016; Rating: A2;
Rating Type: Enhanced LT; Sale Amount: $92,095,000; Expected Sale
Date: 10/19/2016; Rating Description: General Obligation;
Issue: General Obligation Bonds, Series E of 2016 (Qualified School
Construction Bonds - Federally Taxable - Direct Subsidy); Rating:
Ba3; Rating Type: Underlying LT; Sale Amount: $144,035,000;
Expected Sale Date: 10/19/2016; Rating Description: General
Obligation;
Issue: General Obligation Bonds, Series E of 2016 (Qualified School
Construction Bonds - Federally Taxable - Direct Subsidy); Rating:
A2; Rating Type: Enhanced LT; Sale Amount: $144,035,000; Expected
Sale Date: 10/19/2016; Rating Description: General Obligation;
Summary Rating Rationale
Moody's Investors Service has assigned Ba3 underlying and A2
enhanced ratings to Philadelphia School District, PA's $92.1
million General Obligation Bonds, Series D of 2016, $144 million
General Obligation Bonds, Series E of 2016 (Qualified School
Construction Bonds - Federally Taxable - Direct Subsidy), and
$621.8 million General Obligation Bonds, Series F of 2016 and the
State Public School Building Authority's (SPSBA) $560.5 million
School Lease Revenue Refunding Bonds (The School District of
Philadelphia Project), Series 2016A. Concurrently, Moody's has
affirmed the Ba3 underlying and A2 enhanced rating on the
district's outstanding debt. The outlook was revised to stable from
negative for the underlying rating, and remains stable for the
enhanced rating.
The Ba3 underlying rating reflects the district's large urban tax
base with a weak overall socioeconomic profile, above average debt
profile that is supported by a strong lockbox structure for the
payment of debt service, and manageable pension liability. The
rating also incorporates the district's recent budget stabilization
due to additional revenues received from the City of Philadelphia
(A2 negative) beginning in fiscal 2015 that has helped to return
the district's reserves to a healthier, but still narrow level. The
rating also includes the challenges that the district will continue
to face going forward including increasing charter pressures and
pension costs making it difficult to maintain structurally balanced
budgets, particularly in light of the district's lack of authority
to independently authorize increases in property taxes and other
school tax revenues.
The A2 enhanced rating on all of the district's direct general
obligation debt reflects our current assessment of the Pennsylvania
School District Fiscal Agent Agreement Intercept Program, which
provides for the pre-default intercept of state aid in the event of
a payment failure by the district. The A2 enhanced rating on all of
the GO-secured debt issued through the SPSBA, reflects our current
assessment of the SPSBA Lease Intercept Program, though which the
State Treasurer withholds appropriated state aid and makes payments
directly to the bond trustee.
Rating Outlook
The stable outlook on the underlying rating reflects the district's
recently improved financial position that is expected to increase
again in fiscal 2016 and remain stable in fiscal 2017. Moody's
said, "While draws on reserves are projected in the out-years of
the district's five-year plan, we believe these projections are
somewhat conservative, as the district has historically
outperformed budgeted figures."
The stable outlook on the enhanced rating mirrors the outlook on
the Commonwealth of Pennsylvania (Aa3 stable). The commonwealth's
stable outlook recognizes that Pennsylvania's problems - while sure
to persist - are unlikely to lead to sharp liquidity deterioration,
major budget imbalances, or other pressures consistent with lower
ratings for US states
Factors that Could Lead to an Upgrade
-- Attainment of permanent revenue sources to ensure balanced
budgets
-- Halting the migration of students to charter schools
Factors that Could Lead to a Downgrade
-- Continued loss of students to charter schools leading to
bigger and less flexible cost structure
-- Failure to balance budget resulting in more limited
financial flexibility
Legal Security
The district's GO bonds are secured by the district's full faith,
credit and taxing power.
The district's SPSBA lease revenue bonds are secured by lease
payments made by the district to the SPSBA. Under the lease
agreement with SPSBA, the district covenants that the lease
payments represent a full faith, credit and taxing power pledge,
and therefore, we currently rate it on parity with the district's
GO bonds.
Use of Proceeds
Proceeds from the General Obligation, Series D & E of 2016 will
fund various new school-related capital projects. Proceeds from the
General Obligation Series F of 2016 will refund the Series 2008E,
Series 2008F, Series 2010E, Series 2016B, and Series 2016C bonds
for an estimated net present value savings of $56.4 million, or
8.1% of refunded principal, with no extension of maturity. The
Series F of 2016 bonds will convert all of the district's variable
rate debt into fixed rate.
Proceeds from the SPSBA's Series 2016A bonds will refund the Series
2006A and Series 2006B bonds for an estimated net present value
savings of $99.9 million, or 15.7% of refunded principal, with no
extension of maturity.
Obligor Profile
Philadelphia School District is the largest public school district
in Pennsylvania and the eighth-largest in the country. The district
operates 215 schools with enrollment of 202,686 (includes 68,610
students in charters) in fiscal 2016. The district employs more
than 7,600 teachers.
Methodology
The principal methodology used in the underlying rating was US
Local Government General Obligation Debt published in January 2014.
An additional methodology used in the SPSBA underlying rating was
Lease, Appropriation, Moral Obligation and Comparable Debt of US
State and Local Governments published in July 2016. The principal
methodology used in the enhanced rating was State Aid Intercept
Programs and Financings: Pre and Post Default published in July
2013.
R&G FOOD: Joseph Moulton to Serve as CEO After Ch. 11 Exit
----------------------------------------------------------
R&G Food Services Inc., d/b/a Latitude Catering (R&G), filed
supplements to the Second Amended Disclosure Statement filed in
connection with the Second Amended Joint Plan of Reorganization of
R&G Food Services and Ronda Sneva dated Aug. 9, 2016, to disclose,
among other things, that after reorganization, R&G will be managed
by Joseph Moulton, as Chief Executive Officer of the company.
Mr. Moulton will have exclusive authority to direct and bind the
company. The CEO will serve until replaced by a majority vote of
the shareholders. Ronda Sneva, Corbett Sneva and Jenna Sneva will
have no authority to act unilaterally on behalf of and/or bind the
company.
Ronda Sneva will continue to be employed by R&G pursuant to the
terms of the employment agreement. Corbett Sneva will be employed
by R&G as a Unit Fire Manager. He will be employed as an at-will
employee, and will be supervised by CEO Joseph Moulton.
It is currently unknown whether Jenna Sneva will continue to be
employed post-confirmation. The CEO requires more time to explore
her job skills and essential functions within the company. If her
employment continues post-confirmation, she will be an at-will
employee, also supervised by CEO Joseph Moulton.
Copies of the Supplements are available at:
http://bankrupt.com/misc/azb15-13185_505_Supp_DS_R_Sneva.pdf
http://bankrupt.com/misc/azb15-13185_507_Am_DS_R_Sneva.pdf
About R&G Food
R & G Food Services, Inc., d/b/a Latitude Catering, and Ronda Sneva
sought protection under Chapter 11 of the Bankruptcy Code (Bankr.
D. Ariz. Case Nos. 15-13187 and 15-13185) on Oct. 14, 2015.
R & G is an emergency food services company that provides prepared
food, drinks, and other related relief to firefighters and aid
workers at natural disaster sites throughout the country. It also
provides its mobile catering services to fundraising events put on
by non-profit organizations.
Ms. Sneva is the president and chief executive officer of R & G and
the primary guarantor of the majority of its debts.
RIVERSIDE MULCH: Plan Contemplates November Auction for Property
----------------------------------------------------------------
Riverside Mulch, Inc., in September 2016 filed an Amended Plan of
Liquidation and Amended Disclosure Statement to resolve the
objection filed by David Bissett of the office of the Assistant
United States Trustee.
According to the Debtor, the business interests in West Virginia
and Virginia are not now cost effective and the current
circumstances have led the Debtor to devise a private sale
procedure and subsequent court bid process which will eliminate the
need for Debtor operations, and which, by saving the cost of a
formal trustee (percentage of sale) fee or real estate foreclosure
suit and trustee fee, substantially reduce the expenses of a
"normal" liquidation plan.
With the Debtor's (and separately, principal's) real estate being
exposed for sale, with a single Realtor acting as sales and
marketing agent for most assets, and a single employee to prepare
final tax returns and filings with the Court, sales will all be
made and operations ceased with all excess funds of sale to be
passed through for the benefit of creditor distributions under the
Plan.
The Debtor, counsel, creditor counsel and primary claimants have
already sold most personal and machinery and equipment property of
the Debtor situated in West Virginia, together with any equipment
or other personality identified in the Plan or the petition. The
net proceeds in the sale of such properties in the sum of
$1,200,000 were subject to expenses of sale, taxes, and liens.
There is $349,511 now resting in BKR counsel's escrow accounts, and
any amounts net of further administrative expenses may be held for
distribution to unsecured creditors.
According to the Amended Disclosure Statement, A & G Realty
Partners, and Mike Matlat, will by year end, receive bids and will
thereinafter hold an auction on premises auctioned, or at such
other place as he chooses in his sole discretion, provided that the
high bid by which the real estate and remaining property must be
sold will be presented for Court approval and potential upset bid
at the Court's Martinsburg docket on Nov. 18 at 3:30 p.m., or
failing bid closure or scheduling notice of such date, at the
Court's Dec. 29th or 30th docket. The Court may provide for
conversion of the case or lift stay for upon the motion of a
secured party if no offers are accepted to purchase the real
estate.
The Realtor will, by year end, provide for private auction of the
real estate and remaining property to be sold, with final upset
bidding provided for at or before the final hearing approving these
sales, to be held on Nov. 17th, or Nov. 18th, as the Court may
schedule, at the W. Craig Broadwater Federal Building and United
States Courthouse. 217 W. King Street, Martinsburg, WV 25401. It
is hereby provided that, in the event no sale may be then
confirmed, the Court may schedule a subsequent date for sale
confirmation at the Martinsburg Courthouse on Dec. 29 or 30, 2016.
If no sale may be then confirmed, the Court may then provide
alternatively that Secured Creditors may foreclosure on remaining
assets, or the case converted to one under Chapter 7 depending upon
the best interest of creditors. Offers for property of the Debtor
shall be non-contingent.
The Debtor may not utilize any cash or funds of sales, operating
funds, cash reserved, sale proceeds, liquidated accounts receivable
and otherwise for cash payments for Expenses of Administration or
Classes of Claims without Court order, as provided by the Plan.
Unless a different date is set by Order of the Court, all
objections to Claims shall be filed and served on the later of 30
days after the Effective Date or 60 days after a particular Proof
of Claim is filed.
Copies of the Amended Plan and Amended Disclosure Statement are
available at:
http://bankrupt.com/misc/wvnb15-01109_156_DS_Exh_Riverside.pdf
http://bankrupt.com/misc/wvnb15-01109_155_Am_DS_Riverside.pdf
Judge Patrick M. Flatley will convene a hearing on Oct. 14, 2016,
at 11:00 a.m., to consider confirmation of the Plan.
About Riverside Mulch
Riverside Mulch, Inc., was incorporated by Adam Stump, Sr. as a
West Virginia corporation over 10 years ago. Since its formation,
the company has become the holder of real estate there and in
Virginia, for mulch production, the major (sole) operation, and
further granting security in personally held real estate, including
the home and other lands of the principal.
Riverside Mulch sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. N.D. W.Va. Case No. 15-01109) on Nov. 13,
2015. The petition was signed by Adam V. Stump, Sr., president.
At the time of the filing, the Debtor estimated its assets and
liabilities at $1 million to $10 million.
ROADHOUSE HOLDING: Files Solicitation Version of Plan Disclosures
-----------------------------------------------------------------
Roadhouse Holding Inc., along with seven of its direct and indirect
subsidiary corporations, filed with the U.S. Bankruptcy Court for
the District of Delaware a Solicitation Version of the Disclosure
Statement explaining their First Amended Joint Plan of
Reorganization.
The Debtors relate that the Bankruptcy Court has entered a
Disclosure Statement Order on Sept. 28, 2016, determining that the
Debtors' Disclosure Statement contains "adequate information," and
setting voting procedures and scheduling the Confirmation Hearing.
Ballots are required to be returned to the Debtors by no later than
Nov. 2, 2016.
Any Claim in Class 6 - General Unsecured Claims, to which an
objection or request for estimation is filed on or prior to October
19, 2016, will not be entitled to vote, unless the holder of that
Claim has obtained an order of the Bankruptcy Court temporarily
allowing such Claim for the purpose of voting on the Plan.
The Troubled Company Reporter on Oct. 6, 2016, reported that Class
6 General Unsecured Claims are impaired under the Plan. On the
Effective Date, or as soon thereafter as reasonably practicable,
except to the extent that a holder of an allowed General Unsecured
Claim agrees to less favorable treatment, in full and final
satisfaction, settlement, release, and discharge of and in exchange
for such Claim, each holder of an Allowed General Unsecured Claim
shall receive its Pro Rata share of the General Unsecured Claim
Cash Pool. Holders of these claims are expected to recover
2.5%-3.5%.
The TCR, citing BankruptcyData.com, also reported that the First
Amended Plan includes a settlement with the Official Committee of
Unsecured Creditors and the parties to the Restructuring Support
Agreement, which resolve in principle the objections that the
Creditors' Committee raised regarding the DIP Facilities, the
Restructuring Support Agreement, and the Plan and Disclosure
Statement. That resolution is now reflected in the Final DIP Order
and Plan. Pursuant to the Creditors' Committee Settlement, the
treatment of holders of General Unsecured Claims is improved by (i)
an increase in the amount of cash in the General Unsecured Claims
Pool from $350,000 to a total of $1 million, (ii) a waiver of
deficiency claims on account of the Notes and all other unsecured
claims held by the Unanimous Supporting Noteholders, (iii) the
waiver and release of all Avoidance Actions by the Debtors and
Reorganized Debtors, and (iv) the appointment of an Ombudsman with
consultation rights regarding the allowance of general unsecured
claims, subject to certain thresholds.
The Creditors' Committee Settlement will also provide an estimated
$5 million of increased liquidity for the benefit of the
Reorganized Debtors through a combination of adding an additional
$3.5 million of 'new money' loans under the Exit Second Lien
Facility and an estimated $1.5 million reduction in the Cash-Out
Payment as a result of lowering the threshold to determine which
holders of Unexchanged Notes Claims will receive a Cash-Out
Payment. [A]s a result of the benefits of the global settlement to
General Unsecured Creditors -- in the form of increased recoveries
and strengthening the Reorganized Debtors' financial position at
emergence -- the Creditors' Committee agreed to support
confirmation of the Plan, including the settlements and releases
embodied in the Plan."
According to the report, the Court subsequently approved the
Disclosure Statement and scheduled a November 9, 2016 Plan
confirmation hearing.
The Solicitation Version of the Disclosure Statement is available
at:
http://bankrupt.com/misc/deb16-11819-339.pdf
About Roadhouse Holding Inc.
Roadhouse Holding Inc. was founded in 2010 and is based in New
York. Roadhouse Holding, along with seven affiliates which include
Logan's Roadhouse Inc. and LRI Holdings Inc., filed for Chapter 11
bankruptcy protection (Bankr. D. Del. Case No. 16-11819) on Aug. 8,
2016.
Roadhouse Holding, et al., are represented by Robert S. Brady,
Esq., Edmon L. Morton, Esq., Ryan M. Bartley, Esq., Elizabeth S.
Justison, Esq., and Norah M. Roth-Moore, Esq., at Young Conaway
Stargatt & Taylor, LLP.
Hilco Real Estate, LLC, serves as real estate advisor to the
Debtors; Jefferies LLC serve as financial advisor; and Donlin
Recano & Company as claims and noticing agent.
Andrew Vara, acting U.S. trustee for Region 3, on August 19, 2016,
appointed five creditors of Roadhouse Holding Inc. to serve on the
official committee of unsecured creditors.
Dechert LLP and Ashby & Geddes, P.A., serve as counsel to (a) BOKF,
NA, as successor to Wells Fargo Bank, National Association, as
trustee and collateral agent under that certain Senior Secured
Notes Indenture, dated as of Oct. 4, 2010; (b) Carl Marks
Management Company, LLC; and (c) Marblegate Asset Management, LLC.
SALADO SMILES: Selling East West Bank Collateral to Dr. Lufburrow
-----------------------------------------------------------------
Salado Smiles, P.C., asks the U.S. Bankruptcy Court for the Western
District of Texas to authorize the private sale of collateral of
East West Bank to Howard Lufburrow, DDS, PLLC.
The bankruptcy and the related bankruptcies of Howard Lufburrow and
Debra Dudley Lufburrow ("Lufburrow Chapter 7 Case") and Harker
Heights Smiles P.C. resulted from the expansion of Dr. Lufburrow's
dental practice from one location to three. The managerial,
financial and practical burdens of operating three locations proved
to be untenable and led Dr. Lufburrow to close the locations in
Harker Heights and Jarrell, Texas. The Debtor continues to operate
a dental practice in Salado, Texas.
East West Bank has a first lien on the Debtor's inventory, chattel
paper, accounts receivable, equipment, instruments and general
intangibles. East West Bank also holds a blanket lien on all
equipment which is not subject to specific purchase money liens and
certain specifically identified equipment reflected in the exhibit
to the UCC Financing Statement filed on Feb. 4, 2013, in favor of
East West Bank, under Filing No. 13-0003776360 in the office of the
Secretary of State of Texas.
East West Bank further holds a second lien on a commercial real
property located in Salado, Texas where the Debtor operates its
practice. The real property is owned by of Dr. Lufburrow and and
Mrs. Lufburrow individually. Further, Dr. Lufburrow is a borrower
under the loan documents with East West Bank relative to the loan
to the Debtor and Dr. Lufburrow jointly.
Contemporaneously with the filing of the Motion, Dr. Lufburrow is
filing a motion to dismiss his personal Chapter 7 case.
The Debtor proposes to sell the collateral of East West Bank to the
Purchaser, PLLC, subject to the existing debt owed to East West
Bank and the liens securing the same. Dr. Luffburrow will reaffirm
in the Lufburrow Chapter 7 Case or in the alternative guarantee the
debt to East West Bank and, thereafter, will assume the debt to
East West Bank in his individual capacity.
Upon assumption of the debt, East West Bank will be paid in the
full amount of its principal, interest, attorneys' fees and costs,
together with the reasonable additional attorneys' fees and costs
incurred by East West Bank in connection with the Debtor's Chapter
11 bankruptcy case and Lufburrow Chapter 7 Case. The terms of the
assumed loan will be substantially the same as those now in force
except that any arrears and/or fees will be re-amortized over the
remaining term of the loan until the maturity date of Feb. 4, 2023.
There will be no cash payment to the Debtor as part of the
transaction with East West Bank.
At the time of filing, the Debtor valued East West Bank's
collateral as follows:
a. accounts receivable - $70,000,
b. equipment - $115,000,
c. goodwill - $0, and
d. the second lien - $244,000.
The actual balance of the receivables was approximately $140,000
but 50% of those receivables were more than 90 days old and were
valued at zero.
According to its proof of claim on file, at the time of filing the
balance owed to East West Bank was $357,599. As of the date of
filing of the Motion, the balance owed to East West Bank is
$341,894, not including attorneys' fees. Total receivables as of
Aug. 31, 2016 were $82,817 with $22,630 being 90 days old or older.
The remaining collateral is essentially unchanged.
The purchaser will also assume the Debtor's liability to the IRS
for 941 taxes in the approximate amount of $40,000. The IRS has
filed a proof of claim in the approximate amount of $20,000 for
taxes incurred by Sonterra Smiles, a doing business as of the
Debtor. It is anticipated that the Debtor will also be responsible
for 941 taxes owed by Harker Heights Smiles, P.C., which is a
wholly owned subsidiary of the Debtor.
The sale of the collateral will be further subject to the liens of
Bell County for taxes in the amount of $2,622 and Williamson County
in the amount of $5,440.
Upon the order approving the Motion becoming final, Dr. Lufburrow
will execute a promissory note in the principal amount of $25,000
payable to the Debtor at the rate of $1,000 per month without
interest.
Upon completion of the sales of the collateral of East West Bank
and Everbank, the case will be converted to Chapter 7. Payments
made on the note will be deposited in the Debtor's counsel's trust
account until the case is converted at which time they will be
remitted to the Chapter 7 trustee appointed in the case.
The Debtor has negotiated a purchase of the collateral of Everbank
for $20,000. Everbank has filed 3 proofs of claim totaling
$165,082. The sale will be the subject of a separate motion to
sell.
Although there will be no distribution to general unsecured
creditors as a result of the transaction, management of the Debtor
is of the opinion that the transaction will result in full payment
to East West Bank, the IRS, and Bell County and has the benefit of
allowing the patients of the Debtor to continue to receive quality
dental care with a minimal interruption in service and will further
allow the Debtor's employees to maintain their employment.
About Salado Smiles
Salado Smiles, P.C., formerly doing business as Sonterra Smiles,
operates a dental practice in Salado, Tex. The company filed a
chapter 11 petition (Bankr. W.D. Tex. Case No. 16-10413) on Apr.
5,
2016, and is represented by Michael V. Baumer, Esq., in Austin,
Tex. At the time of the filing, the Debtor disclosed total assets
of $177,203 and debt totaling $1.24 million.
The Debtor remains as debtor-in-possession.
The meeting of creditors pursuant to 11 U.S.C. Sec. 341 was
conducted and concluded on May 6, 2016.
SANDRA NADEEN MONGER: Court Orders Ch. 11 Trustee Appointment
-------------------------------------------------------------
The United States Bankruptcy Court for the District of Maryland
entered a consent order directing the U.S. Trustee to appoint a
Chapter 11 Trustee in the Chapter 11 case of Sandra Nadeen Monger.
The U.S. Trustee is represented by:
Jeanne M. Crouse, Esq.
OFFICE OF THE U.S. TRUSTEE
6305 Ivy Lane, Suite 600
Greenbelt, MD 20770
Sandra Nadeen Monger filed a Chapter 11 petition (Bankr. D. Md.
Case No. 15-18735) on June 19, 2015.
SAUCIER BROS: Seeks 60-Day Exclusive Filing Period Extension
------------------------------------------------------------
Saucier Bros. Roofing, Inc. asks the U.S. Bankruptcy Court for the
Southern District of Mississippi to extend its exclusive period to
file a chapter 11 plan for a period of 60 days, or December 3,
2016.
Absent an extension, the Debtor's exclusive plan filing period
would have expired on October 3, 2016.
The Debtor relates that it is attempting to sell a parcel of real
property, the sale of which will impact its disclosure statement
and plan, and has been unable to prepare an adequate disclosure
statement and proposed plan.
About Saucier Bros. Roofing, Inc.
Saucier Bros. Roofing, Inc., filed a chapter 11 petition (Bankr.
S.D. Miss. Case No. 16-50775) on May 5, 2016. The petition was
signed by Clement B. Saucier, III, president. The case is assigned
to Judge Katharine M. Samson. The Debtor is represented by Patrick
A. Sheehan, Esq., at Sheehan Law Firm. The Debtor estimated assets
at $0 to $50,000 and debt at $1 million to $10 million at the time
of the filing.
SNEED SHIPBUILDING: Given Until Oct. 17 to File Chapter 11 Plan
---------------------------------------------------------------
Judge David R. Jones of the U.S. Bankruptcy Court for the Southern
District of Texas extended Sneed Shipbuilding, Inc.'s exclusive
period to file a plan of reorganization through October 17, 2016.
The Debtor previously sought the extension of its exclusive period
to file a plan of reorganization, contending that Martin Sneed, Sr.
had recently passed causing a delay in resolving the issues
relating to its lease. The Debtor further contended that the
bankruptcy case, though not large in size, has multiple complex and
critical issues yet to be resolved, including, the success of the
Debtor's efforts to determine whether it can assume its lease of
real property from Mr. Sneed.
The Debtor related that it was mediating its lease with the estate
of Martin M. Sneed on October 7, 2016 and a potential resolution to
such issues may pave a clear path to a viable Chapter 11 plan.
About Sneed Shipbuilding, Inc.
Sneed Shipbuilding, Inc., sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. S.D. Tex. Case No. 16-60014) on March 4,
2016. The petition was signed by Clyde E. Sneed, president.
The Debtor is represented by Amber Michelle Chambers, Esq., Eric
Michael VanHorn, Esq., and Nicholas Zugaro, Esq., at McCathern,
PLLC. The case is assigned to Judge David R. Jones.
The Debtor estimated assets of $1 million to $10 million and debts
of $10 million to $50 million.
The Office of the U.S. Trustee appointed five creditors of Sneed
Shipbuilding, Inc., to serve on the official committee of unsecured
creditors. The committee members are: (1) Triple-S Steel Supply
Co.; (2) New Industries, L.L.C.; (3) NC Receivables Corporation;
(4) Contractors Building Supply Co., L.L.C.; and (5) Central Boat
Rentals, Inc.
SOTO REEFER: Seeks to Employ Moreno and Soltero as Counsel
----------------------------------------------------------
Soto Reefer Containers Inc. seeks authorization from the U.S.
Bankruptcy Court for the District of Puerto Rico to employ Moreno
and Soltero Law Office, LLC, as counsel.
The Debtor requires Moreno and Soltero to represent it in its
petition for relief under Chapter 11 of the Bankruptcy Code filed
on September 26, 2016.
Moreno and Soltero will be paid at an hourly rate of $180 and will
be reimbursed for reasonable out-of-pocket expenses incurred.
The Debtor says it has advanced Moreno and Soltero a $7,000
retainer, plus $1,717 filing fees.
Rosana Moreno Rodriguez, Esq., attorney at Moreno and Soltero,
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.
Moreno and Soltero can be reached at:
Rosana Moreno Rodriguez, Esq.
MORENO AND SOLTERO LAW OFFICE, LLC
Trujillo Alto, PR 00977
Tel.: (787) 750-8160
Fax: (787) 750-8243
Email: rmoreno@morenosolterolaw.com
Soto Reefer Containers, Inc., filed a Chapter 11 petition (Bankr.
D.P.R. Case No. 16-07602) on September 26, 2016, and is represented
by Rosana Moreno Rodriguez, Esq., at Moreno & Soltero Law Office,
LLC.
STONERIDGE PARKWAY: Court Denies Ch. 11 Trustee Appointment Bid
---------------------------------------------------------------
The United States Bankruptcy Court for the District of Nevada
entered an order denying, without prejudice, Melanie Hill's Motion
for Order Authorizing the Appointment of a Chapter 11 Trustee for
Stoneridge Parkway, LLC.
The Court had vacated the hearing on the Motion set for September
27, 2016. Moreover, the Court further ordered to retain
jurisdiction over any matters relating to or arising from, the
implementation of the Order.
The Troubled Company Reporter, on Sept. 1, 2016, reported that Ms.
Hill asked the Bankruptcy Court to enter an order directing the
appointment of a Chapter 11 Trustee for the Debtor due to Debtor's
gross mismanagement of the affairs in the Silverstone Ranch Golf
Course.
According to Ms. Hill, Danny Modaberpour, the Debtor's manager and
sole representative at the 341 meeting of creditors on August 18,
2016, was found to have incurred multiple examples of dishonesty
and misrepresented the status of maintenance of its sole asset-
the
golf course property.
Adverse to the presentation of the Debtor at the meeting, Hill was
informed by the City of Las Vegas Code Enforcement that the
electricity at the Silverstone Ranch Golf Course is off again.
Without electricity it is impossible to adequately maintain the
golf course, to include timed watering and/or safety lighting.
Such
failure to properly maintain the property to the minimum standards
set in the Las Vegas Municipal Code resulted to an assessment of
daily fines at the rate of $4,500 a day against the property. Mr.
Modaberpour has not even responded to the City of Las Vegas's
requests to discuss these issues with city code enforcement
officers, showing a lack of concern for its violations. Moreover,
Mr. Modaberpour testified that he was not aware of the upcoming
hearing with the City of Las Vegas on August 31, 2016.
If the Court appoints a trustee on August 30, 2016, the Trustee
could attend the City of Las Vegas code enforcement hearing in
place of the Debtor to attempt to rectify the outstanding
municipal
code violations, stop the daily civil penalties of $4,500 a day
from continuing to accrue and further encumbering the property,
and
avoid permanent loss of the golf course property's trees, grass,
flora and fauna.
The Silverstone Ranch Golf Course was initially bought by Desert
Lifestyles and then later on sold to the Debtor. In the case,
Hill's request for a Chapter 11 Trustee, an independent party,
will
act to investigate the underlying purchase and sale transaction of
the property.
In general, the Creditor's Motion for Order Authorizing the
Appointment of a Chapter 11 Trustee argues that cause exists for
the interest of creditors and interested parties of the estate.
The
Creditor asserted that due to the Debtor's failure to disclose
material and relevant information to the Court and creditors, the
appointment of a Chapter 11 trustee is required.
About Stoneridge Parkway
Stoneridge Parkway, LLC, sought protection under Chapter 11 (Bankr.
C.D. Cal. Case No. 15-14111) on December 18, 2015. The petition was
signed by Danny Modab, managing member.
The venue was later transferred to the U.S. Bankruptcy Court for
the District of Nevada (Case No. 16-11627).
The Debtor estimated assets of $100,000 to $500,000 and debts of $1
million to $10 million. The Debtor is represented by Samuel A.
Schwartz, Esq., at Schwartz Flansburg PLLC, in Las Vegas, Nevada.
SUNPOWER BY RENEWABLE: Hires Peel Brimley as Special Counsel
------------------------------------------------------------
Sunpower by Renewable Energy Electric, Inc., seeks authorization
from the U.S. Bankruptcy Court for the District of Nevada to employ
Peel Brimley LLP as special counsel, nunc pro tunc to the August
12, 2016 petition date.
The Debtor requires Peel Brimley to:
(a) provide legal advice in connection with state court
matters to ensure compliance with the Nevada Rules of Professional
Conduct, including but not limited to, preparing and prosecuting
the necessary motions and pleadings; and,
(b) conduct discovery, and communication and negotiation with
the opposing counsel and other interested parties.
Peel Brimley will be paid at an hourly rate of $250 and will be
reimbursed for reasonable out-of-pocket expenses incurred.
The Debtor assures the Court that Peel Brimley's representation as
attorneys does not conflict with the interests of the Debtor or its
estate in the Debtor's Chapter 11 case. Peel Brimley is owed
$13,752.10 for prepetition services.
Ronald J. Cox, Esq., associate attorney of Peel Brimley, 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.
Peel Brimley can be reached at:
Ronald J. Cox, Esq.
PEEL BRIMLEY LLP
3333 E. Serene Avenue, Suite 200
Henderson, NV 89074-6571
Tel.: 702-990-7272
Fax: 702-990-7273
Email: info@peelbrimley.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
SYCAMORE INVESTMENT: Sought Two-Day Exclusivity Extension
---------------------------------------------------------
Sycamore Investment Group-Olympiad, LLC asked the U.S. Bankruptcy
Court for the Southern District of Florida to extend its exclusive
period to solicit acceptances to its Plan, for 2 days, through
October 5, 2016.
The Debtor related that the Court held a hearing on the Debtor's
proposed First Amended Disclosure Statement and set a Confirmation
hearing for November 17, 2016. The Debtor further related that
October 3, 2016, was previously set as the deadline to solicit
acceptances of the Debtor's Plan.
The Debtor contended that it required two additional days to
finalize the documents and sent the copy service or processing and
mailing. The Debtor further contended that it intends to proceed
to confirmation without delay, and expects a hearing on
confirmation of the Plan to be held on November 17, 2016.
About Sycamore Investment Group-Olympiad, LLC.
Sycamore Investment Group-Olympiad, LLC filed a chapter 11 petition
(Bankr. S.D. Fla. Case No. 16-11720) on February 5, 2016. The
petition was signed by Peter S. Pessoa, authorized officer. The
Debtor is represented by Paul J. Battista, Esq., at Genovese
Joblove & Battista, P.A. The case is assigned to Judge Jay A.
Cristol. The Debtor estimated both assets and liabilities in the
range of $1 million to $10 million.
TERRILL MANUFACTURING: Taps Spigner & Associates as Legal Counsel
-----------------------------------------------------------------
Terrill Manufacturing Co., Inc. seeks approval from the U.S.
Bankruptcy Court for the Northern District of Texas to hire Spigner
& Associates, PC as its legal counsel
The services to be provided by the firm include advising the Debtor
regarding its duties in its Chapter 11 case and assisting the
Debtor in the formulation of a plan of reorganization.
The firm's professionals and their hourly rates are:
Reedy Macque Spigner $450
Denise Turnbull $250
Paralegal $90
Reedy Macque Spigner, Esq., disclosed in a court filing that he
does not hold or represent any interests adverse to the Debtor's
estate, and that he is a "disinterested person" as defined in
section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Reedy Macque Spigner, Esq.
Denise Turnbull, Esq.
Spigner & Associates, PC
555 Republic, Suite 430
Plano, TX 75074
Tel: 972.881.0581
Fax: 972-424-1309
Email: Spigner@glocktech.net
About Terrill Manufacturing Co.
Terrill Manufacturing Co., Inc. sought protection under Chapter 11
of the Bankruptcy Code (Bankr. W.D. Tex. Case No. 16-52127) on
September 20, 2016. The petition was signed by Gary Rushin,
president and chief executive officer.
On October 3, 2016, the court ordered the transfer of the case from
Texas Western, San Antonio to Northern District of Texas, San
Angelo Division (Bankr. N.D. Tex. Case No. 16-60105).
At the time of the filing, the Debtor estimated assets and
liabilities of less than $50,000.
TOM GJURAJ: Chapter 11 Plan Set for Nov. 30 Confirmation
--------------------------------------------------------
Tom Gjuraj on Sept. 14, 2016, filed a Second Amended Disclosure
Statement and a Second Amended Plan of Reorganization.
On Sept. 27, 2016, Judge Ann M. Nevins ordered that:
1. The Second Amended Disclosure Statement is approved;
2. On or before Sept. 30, 2016, the proponent will mail pursuant
to Bankruptcy Rule 3017(d), (1) the amended plan or a court
approved summary thereof; (2) the Amended Disclosure Statement; and
(3) a copy of the Disclosure Statement Order to all creditors and
equity security holders. In addition, the proponent will mail a
ballot, conforming to Official Form No. 14, to creditors and equity
security holders entitled to vote on the Plan;
3. Oct. 26, 2016, at 5:00 p.m., is fixed as deadline for the
debtor, Tom Gjuraj, to file objections to claims;
4. Nov. 9, 2016, is fixed as the last day for returning written
ballots of acceptance or rejection of the Plan;
5. Written objections to the Plan, pursuant to Bankruptcy Rule
3020(b), will be filed with the court no later than Nov. 9, 2016,
and
6. Nov. 30, 2016, at 11:00 a.m. is fixed as the date of the
hearing to consider confirmation of the Plan in the United States
Bankruptcy Court, Connecticut Financial Center, 157 Church Street,
18th Floor New Haven, Connecticut.
Under his proposed Chapter 11 Plan, the Debtor proposes to pay the
unsecured creditors holding allowed non priority claims their pro
rata share of the sum of $650 payable each quarter over 6 years for
a total of $15,600. Filed and scheduled non-priority unsecured
allowed Claims total approximately $155,317. The Debtor intends to
primarily use his income, rental income and income from his company
as necessary to further the payments under the Plan. A copy of Tom
Gjuraj's Second Amended Disclosure Statement dated Sept. 14, 2016,
is available at https://is.gd/htRsGm
About Tom Gjuraj
Tom Gjuraj filed a Chapter 11 petition (Bankr. D. Conn. Case No.
15-51297) on Sept. 14, 2015, and is represented by Matthew K.
Beatman, Esq., at Zeisler & Zeisler, P.C., in Bridgeport,
Connecticut.
TRANSOCEAN INC: Fitch Affirms 'B+' Long Term Issuer Default Rating
------------------------------------------------------------------
Fitch Ratings has affirmed Transocean Inc.'s (Transocean; NYSE:
RIG) Long-Term Issuer Default Rating (IDR) at 'B+'. In addition,
Fitch rates Transocean Phoenix 2 Limited's Long-Term IDR 'B+' and
senior secured notes 'BB-'/'RR3'. The Rating Outlook remains
Negative.
Approximately $8.7 billion of debt, excluding the outstanding
Eksportfinans loans, is affected by today's rating actions.
The secured debt rating considers the structural seniority of the
notes given the lien on the Deepwater Thalassa and certain other
assets related to the rig, as well as guarantees by Transocean
Ltd., Transocean Inc., and a wholly-owned indirect subsidiary that
owns the Deepwater Thalassa, an ultra-deepwater (UDW) drillship
operating under a 10-year Shell (rated 'AA-'/Negative Outlook)
contract. Issuance of the senior secured notes will unfavorably
impact recoveries at the unsecured level, but the existing
unsecured recovery ratings have sufficient headroom. Fitch views
the guarantee as an additional (secondary) payment support that is
essentially a payment put to the extent the Deepwater Thalassa's
contracted cash flows are insufficient to repay the secured notes.
The supportive contract features, strong operating history,
favorable contract performance history between Transocean and
Shell, and the six month debt service reserve provide a level of
confidence in the Deepwater Thalassa's ability to independently
meet its annual debt service. However, contract performance and
renegotiation, as well as refinance, risks remain.
Fitch recognizes that the company may continue to issue secured
debt in the future that further subordinates existing unsecured
debt classes, which could result in additional rating actions. The
company, as defined in its indenture, has a lien limitation equal
to 10% of consolidated net tangible assets. Fitch estimates the
secured lien capacity to be approximately $2.3 billion as of June
30, 2016. The lien limitation provides a carve-out for drilling rig
or drillship secured debt. The rig secured debt must be incurred
prior to or within 12 months of certain events, including the
commencement of a drillship or drilling rig's commercial
operations, with the aggregate principal, under the terms of the
unsecured guaranteed debt indenture, not to exceed 85% of the cost
or price paid (vs. 100% under the unsecured nonguaranteed debt
indentures).
The Negative Outlook considers the heightened offshore rig
re-contracting risk and the potential for a deeper and longer
offshore drilling downcycle than currently forecasted by Fitch.
Fitch continues to estimate the recovery inflection point to be the
second half of 2018, but understands this may change given the
evolving hydrocarbon pricing environment, rig oversupply cycle, and
offshore E&P spending trends. Fitch anticipates an uptick in rig
tendering activity will lag supportive oil & gas price levels
(currently estimated at $65 - $70/barrel for deepwater) by at least
six to 12 months. Customer preference towards larger, established
drillers could lead to somewhat higher utilization rates for
Transocean relative to peers. Day rates, however, are anticipated
to remain challenged and range-bound reflecting the market
imbalance and economics required to reactivate stacked rigs.
Transocean has undertaken numerous actions to manage its credit
profile to date, including the early retirement of debt,
elimination of its dividend, deferral of uncontracted newbuild
deliveries, proactive rationalization of uneconomic rigs (announced
28 scrapped or held for sale, about 50% of industry total),
reduction of operating costs, improvement in rig uptime, and
mitigation of Macondo-related credit risks. Fitch expects the
company to exhibit a near neutral free cash flow (FCF) profile in
2016 and 2017, as well as continue to retire debt and maintain
adequate liquidity over the next couple of years. This should help
the company improve its near-term capital structure; however, the
declining cash flow and evolving asset profiles in the context of
the current offshore rebalancing remain credit concerns.
KEY RATING DRIVERS
Transocean's ratings are supported by its market position as one of
the largest global offshore drillers with a strong backlog ($13.7
billion as of July 21, 2016) and floater-focused rig fleet largely
contracted with financially stronger international oil companies.
The company's high-grading and margin improvement efforts and
adequate near-term financial flexibility, including that afforded
by the deferral of approximately $1.2 billion in uncontracted
newbuild capex payments until 2020, also support the rating. These
considerations are offset by the company's continued need to
generate and conserve liquidity given the weak offshore rig market
outlook, unfavorable capital market conditions, heightened
maturities profile, and contracted newbuild capex commitments.
Fitch views management's proactive financial management as
favorable. While the recent secured and unsecured guaranteed
issuances structurally subordinate the existing unsecured notes,
the proceeds have been and are anticipated to be used to help
improve the company's maturity and liquidity profiles during a
challenged offshore drilling cycle. Further, debt maturity
management actions should also help alleviate bank concerns heading
into credit facility negotiations over the next couple of years.
Fitch believes the company's current (Fitch calculated year-ended
2015 and June 2016 LTM debt/EBITDA of 1.9x and 2.3x, respectively)
and near-term leverage profiles are consistent with a higher
rating. However, Fitch forecasts leverage metrics could exceed
through-the-cycle levels over the rating horizon as current
contract coverage declines meaningfully in 2017 with re-contracting
risk elevated in this very weak market environment.
NEAR NEUTRAL FCF PROFILE; LEVERAGE METRICS RISING
Fitch's base case projects that Transocean, excluding cash flows to
non-controlling interests, will have a near neutral FCF profile in
2016 and 2017. Fitch's base case results in consolidated
debt/EBITDA, excluding cash-collateralized Eksportfinans loans, of
4.4x and 5.9x in 2016 and 2017, respectively. Fitch recognizes that
the secured notes, as well as any potential future secured note
issuances, structurally subordinate contracted cash flows to
service corporate debt and believes that adjusted corporate
leverage metrics, excluding rig secured debt and associated cash
flows, could rise above the consolidated metrics.
KEY ASSUMPTIONS
Fitch's key assumptions within the rating case for Transocean
include:
-- Brent oil price that trends up from $42/barrel in 2016 to a
longer-term price of $65/barrel;
-- Current contracted backlog is forecast to remain intact with
no renegotiations contemplated;
-- Market day rates assumed to be $275,000 for higher-
specification UDW rigs with other rig classes seeing
similarly steep price discounts;
-- Fleet composition considers announced rig retirements and
attempts to adjust for uncompetitive rigs due to their
technological obsolescence, undifferentiated market
position, or cost-prohibitive through-the-cycle economics;
-- Capital expenditures consistent with company guidance of
approximately $1.4 billion and $600 million in 2016 and
2017, respectively, with spending levels thereafter largely
based on maintenance capital levels and the current newbuild
delivery schedule;
-- Equity-funded acquisition of Transocean Partners LLC (NYSE:
RIGP) assumed to be completed in Q4 2016;
-- Assumes the potential issuance of an additional $600 million
note secured by the Deepwater Proteus.
RATING SENSITIVITIES
Positive: No positive rating actions are currently contemplated
over the near term given the weak offshore oilfield services
outlook. However, future developments that may, individually or
collectively, lead to a positive rating action include:
For an upgrade to 'BB-':
-- Demonstrated commitment by management to lower gross debt
levels;
-- Mid-cycle debt/EBITDA of below 5.0x on a sustained basis;
-- Further progress in implementing the company's asset
strategy to focus on the high-specification and UDW markets.
To resolve the Negative Outlook at 'B+':
-- Demonstrated ability to secure tenders that constructively
contribute to the backlog and cash flows signalling the
company's ability to manage the industry's re-contracting
risk and bridge its financial profile through-the-cycle;
-- Illustrated progress towards management's 2018 liquidity
target of $3 billion - $3.5 billion, while repaying
scheduled maturities;
-- Mid-cycle debt/EBITDA of 5.0x - 5.5x on a sustained basis.
Negative: Future developments that may, individually or
collectively, lead to a negative rating action include:
-- Failure to manage FCF, repay near-term maturities, and
retain adequate liquidity over the next few years;
-- Issuance of secured debt that structurally subordinates
contracted newbuild cash flows resulting in materially lower
corporate cash flows;
-- Material, sustained declines in rig utilization and day
rates signalling a heightened level of re-contracting and
recovery risk;
-- Mid-cycle debt/EBITDA around 6.0x on a sustained basis.
ADEQUATE NEAR-TERM LIQUIDITY POSITION
Transocean had proforma cash and equivalents of approximately $2.5
billion, including the senior unsecured guaranteed issuance and
debt tender, as of June 30, 2016. The company also had
approximately $360 million in restricted cash investments
associated with the required cash collateralization of the
outstanding Eksportfinans loans and other contingent obligations.
Supplemental liquidity is provided by the company's $3 billion
senior unsecured revolving credit facility due June 2019, including
a $1 billion sublimit for letters of credit. The company had $3
billion in available borrowing capacity on this facility as of June
30, 2016 with the ability to request a $500 million upsizing of the
facility, subject to current, as well as any additional prospective
banks' willingness to participate. Fitch recognizes that the
company has several secured debt options that can be pursued to
further improve liquidity.
HEIGHTENED MATURITIES PROFILE
Transocean has annual senior notes maturities equal to
approximately $938 million, $532 million, and $980 million between
2016 and 2018. These represent the company's 5.05% senior notes due
December 2016, 2.5% senior notes due October 2017, 6% senior notes
due March 2018, and 7.375% senior notes due April 2018. This
excludes Eksportfinans principal amortization that is
cash-collateralized.
Management has been repurchasing debt in the open market over the
past four quarters with cash on hand in an effort to incrementally
improve the near-term liquidity and maturity profiles by reducing
interest payments and capturing a par discount. Over the last four
quarters, the company has opportunistically repurchased debt in the
open market with a principal amount of $731 million for $679
million, saving approximately $139 million in interest expense
through the maturity of this debt. Fitch continues to forecast that
the company can largely retire the scheduled near-term maturities
with cash-on-hand and FCF.
Additionally, management applied approximately $886 million of the
recently issued $1.25 billion senior unsecured guaranteed notes due
2023 to purchase a portion of the 6.5% senior notes due 2020,
6.375% senior notes due 2021 and 3.8% senior notes due 2022. This
incrementally improves the longer-term maturity profile, which
Fitch believes should help alleviate some bank concerns heading
into credit facility renegotiations over the next couple of years.
Transocean, as provided in its bank credit agreement, is subject to
a maximum debt-to-tangible capitalization ratio of 0.6x (0.35x as
of June 30, 2016), excluding intangible asset impairments and
certain other items. Other customary covenants consist of lien
limitations and transaction restrictions.
MANAGEABLE OTHER LIABILITIES
Transocean maintains several defined benefit pension plans, both
funded and unfunded, in the U.S. and abroad. As of Dec. 31, 2015,
the company's funded status was negative $388 million. Fitch
considers the level of pension obligations to be manageable, on a
mid-cycle basis, and the U.S. benefits freeze helps to alleviate
any future pension-related credit risks.
Other contingent obligations primarily comprise purchase
commitments totalling approximately $3 billion on a multi-year,
undiscounted basis as of Dec. 31, 2015. Purchase obligations are
principally related to the company's newbuild program with the
majority of obligations over next few years associated with the
five contracted UDW drillships. Fitch believes the company may
pursue additional secured debt financing, generally consistent with
the Deepwater Thalassa secured debt, to help partially fund these
obligations.
FULL LIST OF RATING ACTIONS
Fitch has taken the following rating actions:
Transocean Inc.
-- Long-Term IDR affirmed at 'B+';
-- Senior unsecured guaranteed notes affirmed at 'BB'/RR2;
-- Senior unsecured notes/debentures affirmed at 'B'/RR5;
-- Senior unsecured bank facility affirmed at 'B'/RR5.
Global Santa Fe Inc.
-- Long-Term IDR affirmed at 'B+';
-- Senior unsecured notes affirmed at 'B'/RR5.
Transocean Phoenix 2 Limited
-- Long-Term IDR rated 'B+';
-- Senior secured notes rated 'BB-'/RR3.
The Rating Outlook remains Negative.
TREND COMPANIES: Seeks Dec. 29 Exclusive Plan Filing Extension
--------------------------------------------------------------
The Trend Companies of Kentucky, Inc. asks the U.S. Bankruptcy
Court for the Western District of Kentucky to extend its exclusive
periods for filing and soliciting acceptances of a plan of
reorganization until December 29, 2016 and February 27, 2017,
respectively.
The Debtor relates that it is unsure at this time how long it will
be able to rent its current location. The Debtor further relates
that its landlord is currently looking to sell the property and
until it is resolved where the Debtor will be conducting its
business in the future, it will difficult to formulate an accurate
plan of reorganization.
About The Trend Companies of Kentucky, Inc.
The Trend Companies of Kentucky, Inc., filed a Chapter 11 petition
(Bankr. W.D. Ky. Case No.16-30258), on Feb. 3, 2016. The petition
was signed by Joseph Dumstorf, president. The case is assigned to
Judge Alan C. Stout. The Debtor is represented by Neil Charles
Bordy, Esq., at Seiller Waterman LLC. At the time of filing, the
Debtor estimated assets at $500,000 to $1 million and liabilities
at $1 million to $10 million.
TRINITY RIVER: Has Until Dec. 1 to File Chapter 11 Plan
-------------------------------------------------------
Judge Tony M. Davis of the U.S. Bankruptcy Court for the Western
District of Texas extended Trinity River Resources, LP's exclusive
periods for filing a chapter 11 plan and soliciting acceptances to
the plan, to December 1, 2016 and January 30, 2017, respectively.
About Trinity River Resources, LP
Trinity River Resources, LP filed a Chapter 11 bankruptcy petition
(Bankr. W.D. Tex. Case No. 16-10472) on April 21, 2016. The
petition was signed by Matthew J. Telfer, manager of Trinity River
Resources, GP, LLC. The Debtor estimated assets at $50 million to
$100 million and liabilities at $100 million to $500 million.
The Debtor has hired Chelsea Rose Dal Corso, Esq. and William A.
(Trey) Wood III, Esq., at Bracewell LLP as counsel, Bridgepoint
Consulting, LLC, as financial advisor, and Scotiabank as investment
banker.
Judge Tony M. Davis is assigned to the case.
TROCOM CONSTRUCTION: Court Denies Fund's Bid to Allow Late Claim
----------------------------------------------------------------
The International Union of Operating Engineers Local 15 Fringe
Benefit Funds, an unsecured creditor of Trocom Construction Corp.,
asks the Court to deem its late filed proof of claim timely filed.
Trocom objects to the motion on the grounds that it properly served
the bar date notice on all of its creditors, including the Fund,
and that the Fund has failed to demonstrate excusable neglect, the
standard required before a late filed claim may be deemed timely.
Trocom filed for chapter 11 relief on May 7, 2015. In its Schedule
F, filed July 22, 2015, Trocom listed the Fund as an unsecured
creditor with an undisputed claim of $49,331.72. On August 4,
2015, the Court entered a bar date order, which established October
1, 2015, as the deadline by which all non-government entities must
file proofs of prepetition claims. On August 7, 2015, Trocom
served notice of the Bar Date on its creditors, including the Fund.
The Fund does not dispute that it had notice of the Bar Date. On
or about October 7, 2015, the Fund obtained an auditor's review of
Trocom's payroll and tax records in order to determine whether
Trocom had remitted the proper amount of fringe benefit
contributions for the July 1, 2012 through June 30, 2015 period.
The auditor issued a report dated January 28, 2016, which indicated
that Trocom owed contributions and interest of $69,212.60. The
Fund filed a proof of claim in that amount on March 15, 2016 -- 166
days after the Bar Date. On the same date, the Fund filed this
motion pursuant to Bankruptcy Rule 9006(b)(1),4 asking this Court
to deem its proof of claim timely filed.
Judge Nancy Hershey Lord of the United States Bankruptcy Court for
the Eastern District of New York agreed with Trocom and denied
the Fund's motion to allow its late filed proof of claim.
Judge Lord held that the Fund has failed to demonstrate excusable
neglect under Pioneer Inv. Servs. v. Brunswick Assoc. Ltd. P'ship,
507 U.S. 380, 388 (1993). The judge noted that beginning with the
third prong -- the reason for the delay, and whether it was within
the reasonable control of the movant -- the Fund points out that
the audit did not occur until after the Bar Date had passed. It
alleges that the audit was done on a random basis by an auditor
that lacked notice of the Bar Date. Finally, it points out that
its counsel did not have notice of the audit and report until
February 6, 2016, four months after the Bar Date had passed. The
Fund, according to the judge, therefore contends that its failure
to file a claim was not due to inadvertence, mistake, or
carelessness.
A full-text copy of the Decision dated September 1, 2016 is
available at https://is.gd/KsqlcZ from Leagle.com.
Trocom Construction Corp., Debtor, is represented by Elizabeth M.
Aboulafia, Esq. -- eaboulafia@cullenanddykman.com -- Cullen &
Dykman LLP, C. Nathan Dee, Esq. -- ndee@cullenanddykman.com --
Cullen & Dykman, LLP, Gary M. Kushner, Esq. --
gkushner@goetzfitz.com -- Goetz Fitzpatrick LLP, Alissa K.
Piccione, Esq. -- apiccione@cullenanddykman.com -- Cullen & Dykman,
Bonnie Pollack, Esq. -- bpollack@cullenanddykman.com -- Cullen &
Dykman LLP, Matthew G. Roseman, Esq. --
mroseman@cullenanddykman.com -- Cullen and Dykman Bleakley Platt
LLP, Scott E. Rynecki, Esq. -- Rubenstein and Rynecki.
Office of the United States Trustee, U.S. Trustee, is represented
by Marylou Martin, Department of Justice, U.S. Trustee's Office for
the EDNY.
About Trocom Construction
Trocom Construction Corp. was formed in 1969 by Salvatore Trovato.
The Company is in the heavy construction business. Its primary
customer is the City of New York through its various agencies.
The
Company has 75 employees, the majority of whom are members of
various unions. Joseph Trovato is presently the president and
holder of 100% of the voting shares of Trocom.
Trocom filed a Chapter 11 petition (Bankr. E.D.N.Y. Case No.
15-42145) on May 7, 2015, in Brooklyn. The petition was signed by
Joseph Trovato. Judge Nancy Hershey Lord presides over the case.
The Debtor is represented by C. Nathan Dee, Esq., at Cullen &
Dykman, LLP.
The Debtor estimated total assets of $32,462,383 and total
liabilities of $17,184,837 as of the Chapter 11 filing.
TRUMP ENTERTAINMENT: Trump Taj Mahal Closes in Atlantic City
------------------------------------------------------------
The American Bankruptcy Institute, citing Aaron Smith and Chris
Isidore of CNN, reported that the Trump Taj Mahal finally closed
its doors in Atlantic City on Oct. 10, 2016.
According to the report, the last guests at the hotel checked out
on Oct. 9, and some of the last gamblers at the casino were cashing
in their chips while its namesake was debating Hillary Clinton,
facing his own increasingly long odds.
Financier Carl Icahn, who owns the casino-hotel, called it a "sad
day for Atlantic City" and for the 3,000 workers at the Taj but he
said he couldn't reach an agreement with striking union workers and
could no longer run the casino without hemorrhaging money, the
report related.
The union, representing about 1,000 of the Taj's workers, reached
deals with four other casinos in the city just before the
Independence Day weekend, including another casino owned by Icahn
but Taj workers went on strike July 1, the report further related.
About Trump Entertainment
Based in Atlantic City, New Jersey, Trump Entertainment Resorts
Inc. (NASDAQ: TRMP) -- http://www.trumpcasinos.com/-- owns and
operates three casino hotel properties in Atlantic City, New
Jersey, which include Trump Taj Mahal Casino Resort, Trump Plaza
Hotel and Casino, and Trump Marina Hotel Casino. The Company
conducts gaming activities and provides customers with casino
resort and entertainment.
Donald Trump is a shareholder of the Company and, as its non-
executive Chairman, is not involved in the daily operations of the
Company. The Company is separate and distinct from Mr. Trump's
privately held real estate and other holdings.
Trump Entertainment Resorts, TCI 2 Holdings, LLC, and other
affiliates filed for Chapter 11 protection on Feb. 17, 2009
(Bankr. D. N.J. Lead Case No. 09-13654). The Company tapped
Charles A. Stanziale, Jr., Esq., at McCarter & English, LLP, as
lead counsel, and Weil Gotshal & Manges as co-counsel. Ernst &
Young LLP served as the Company's auditor and accountant and
Lazard Freres & Co. LLC was the financial advisor. Garden City
Group was the claims agent. The Company disclosed assets of
$2,055,555,000 and debts of $1,737,726,000 as of Dec. 31, 2008.
Trump Hotels & Casino Resorts, Inc., filed for Chapter 11
protection on Nov. 21, 2004 (Bankr. D.N.J. Case No. 04-46898
through 04-46925). Trump Hotels obtained the Court's confirmation
of its Chapter 11 plan on April 5, 2005, and in May 2005, it
exited from bankruptcy under the name Trump Entertainment Resorts
Inc.
* * *
The Troubled Company Reporter, on March 19, 2015, reported that
Judge Kevin Gross of the U.S. Bankruptcy Court for the District of
Delaware confirmed Trump Entertainment Resorts, Inc., et al.'s
Third Amended Joint Plan of Reorganization and Disclosure
Statement
pursuant to Section 1129 of the Bankruptcy Code.
The Debtors filed on January 5, 2015, the Plan and accompanying
Disclosure Statement to, among other things, provide that holders
of General Unsecured Claims will receive Distribution Trust
Interests, which will include $1 million in cash and the proceeds,
if any, of certain avoidance actions. Under the revised plan,
holders of general unsecured claims are estimated to recover 0.47%
to 0.43% of their total allowed claim amount. The Amended Plan
also includes language reflecting the recently-approved $20
million loan from Carl Icahn.
VIRTU FINANCIAL: Fitch Assigns 'BB-' LT Issuer Default Rating
-------------------------------------------------------------
Fitch Ratings has assigned a 'BB-' Long-Term Issuer Default Rating
(IDR) to Virtu Financial LLC (Virtu) and a 'BB-' rating to Vitru's
senior secured debt. The Rating Outlook is Stable.
KEY RATING DRIVERS
The ratings reflect Virtu's established market position as a
technology-driven market maker across various venues, geographies
and products. They also reflect its diversified and growing revenue
base, scalable business model, and experienced management team.
Fitch believes that Virtu's passive, market-neutral trading
strategies in highly liquid products and with extremely short
holding periods minimize market and liquidity risks. Additionally,
the firm's risk controls appear to be robust, as evidenced by
minimal instances of material historical operational losses.
Quantitative factors supporting the ratings include the firm's
consistent earnings performance, robust margins, moderate leverage
and strong interest coverage. On a trailing 12 month (TTM) 2Q16
basis, the adjusted EBITDA margin (as calculated by Fitch as EBITDA
excluding non-cash compensation and other one-time charges divided
by total revenue) was 42.2%, consistent with previous years. As of
2Q16, leverage, as measured by debt (senior secured credit
facility) to TTM adjusted EBITDA was moderate at 1.7x and interest
coverage was strong at 11.2x on an adjusted EBITDA to interest
expense basis. Fitch also considers secondary leverage metrics
including total debt (including short-term credit facilities and
broker-dealer credit facilities) to EBITDA and total debt to
equity. On the basis of these two metrics, Virtu's leverage ratios
were 2.70x and 1.58x, respectively for TTM2Q16, both of which are
viewed as acceptable relative to the assigned ratings.
Primary rating constraints include elevated operational risk
inherent in technology-driven trading, reliance on volatile
transactional revenue, potential competitive threats arising from
evolving market structures and technologies and heightened
regulatory scrutiny of designated market-making, high-frequency
trading and dark pools. Other rating constraints include a
relatively limited funding and liquidity profile primarily reliant
on short-term secured funding facilities, an elevated payout ratio
and a moderate level of key-man risk associated with the firm's
co-founders whose departures could affect Virtu's franchise and
long-term strategic direction.
The 'BB-' senior secured debt rating is equalized with Virtu's IDR,
reflecting Fitch's expectation for average recoveries given the
absence of material unencumbered assets or subordinated debt which
might otherwise improve recovery prospects. Fitch has been made
aware that Virtu is contemplating refinancing its existing senior
secured debt facility with the intention to extend the maturity and
improve the interest expense without impacting leverage. Were this
refinancing to take place, Fitch would expect to assign a similar
rating to the new facility, subject to the terms being consistent
with Fitch's expectations.
The Stable Outlook reflects Fitch's expectation that over the
Outlook horizon Virtu will maintain its low market risk profile,
consistent management team and capitalization and liquidity
levels.
RATING SENSITIVITIES
Positive rating action, though likely limited to the 'BB' rating
category, could result from a continuation of consistent operating
performance and minimal operational losses over a longer period of
time while maintaining cash flow leverage and interest coverage
near current levels. A higher proportion of income derived from
service contracts (only 1.3% of TTM 2Q16 total revenue), positive
tangible equity and increased funding flexibility, including
demonstrated access to third party funding through a variety of
market cycles, could also contribute to positive rating momentum.
Negative rating action could result from material operational or
risk management failures, adverse regulatory or legal actions, or
failure to maintain Virtu's market position in the face of evolving
market structures and technologies. A material shift into trading
less liquid products, a sustained increase in leverage approaching
or above 3.5x on a debt (senior secured credit facility) to
adjusted EBITDA (excluding non-cash compensation and other one-time
charges) basis or a reduction in interest coverage approaching or
below 3.0x on an adjusted EBITDA to interest expense basis could
also have negative rating implications.
Fitch has assigned the following ratings:
-- Long-term IDR 'BB-';
-- Senior secured debt 'BB-'.
The Rating Outlook is Stable.
WARNER MUSIC: Enters Into Lease Pact with Sri Ten
-------------------------------------------------
WMG Acquisition Corp. entered into a lease for its new Los Angeles,
California headquarters, on Oct. 7, 2016. The Lease between the
Company and Sri Ten Santa Fe LLC is for nearly 257,000 square feet
of office space located in the Ford Factory Building, 777 S. Santa
Fe Avenue in Los Angeles, California.
The initial term of the Lease is 12 years and nine months beginning
on the later of Aug. 1, 2017, or the date that a temporary
certificate of occupancy has been issued for the premises, and the
Company may exercise a single option to extend the term of the
Lease for 10 years thereafter. Rental payments by the Company
under the Lease will total approximately $10.0 million per year,
subject to annual fixed increases, excluding rent abatement of 75%
for 16 months beginning in month two of the Lease term. In
connection with its entry into the Lease, the Company will post a
$7.724 million letter of credit with an increase of $7.724 million
to be posted on the later of Feb. 15, 2017, and the date that the
Company first requests payment of any of the landlord's (tenant
improvement) allowance. The letter of credit reduces over time to
zero no later than the first day of the twelfth year of the initial
term, subject to certain conditions. The Company currently expects
to incur approximately $40 million to $50 million in capital
expenditures over the next 18 months, net of the landlord's
allowance, associated with a build-out of the space.
About Warner Music Group
Based in New York, Warner Music Group Corp. (NYSE: WMG)
-- http://www.wmg.com/-- was formed by a private equity
consortium of investors on Nov. 21, 2003. The Company is the
direct parent of WMG Holdings Corp., which is the direct parent of
WMG Acquisition Corp. WMG Acquisition Corp. is one of the world's
major music-based content companies and the successor to
substantially all of the interests of the recorded music and music
publishing businesses of Time Warner Inc.
In May 2011, Warner Music Group Corp. and Access Industries, the
U.S.-based industrial group, announced the execution of a
definitive merger agreement under which Access Industries will
acquire WMG in an all-cash transaction valued at $3.3 billion.
The purchase includes WMG's entire recorded music and music
publishing businesses.
Warner Music reported a net loss attributable to the Company of $91
million on $2.96 billion of revenues for the fiscal year ended
Sept. 30, 2015, compared to a net loss attributable to the Company
of $308 million on $3.02 billion of revenues for the fiscal year
ended Sept. 30, 2014.
As of June 30, 2016, Warner Music had $5.49 billion in total
assets, $5.26 billion in total liabilities and $232 million in
total equity.
* * *
As reported by the TCR on Oct. 23, 2015, Standard & Poor's Ratings
Services lowered its corporate credit rating on Warner Music Group
to 'B' from 'B+'. "The downgrades reflect our expectations that
WMG's adjusted leverage will remain elevated for the next two years
-- above our 5x threshold for the 'B+' corporate credit rating,"
said Standard & Poor's credit analyst Naveen Sarma.
WEST LANE: Disclosures, Chapter 11 Plan Hearing on Nov. 14
----------------------------------------------------------
Judge Michael S. McManus has conditionally approved West Lane
Properties Inc.'s Disclosure Statement dated Sept. 22, 2016. Judge
McManus set:
-- Nov. 14, 2016, at 10:00 a.m., as the hearing on final
approval of the Disclosure Statement and confirmation of the Plan;
-- Oct. 31, 2016, as the last day for the filing and serving
written objections to final approval of the Disclosure Statement,
and written objections to confirmation of the Plan;
-- Nov. 7 as the last day for submitting written acceptances or
rejections of confirmation of the play by returned ballot;
-- Nov. 7, 2016, as the last day for serving written reply to
any objections to confirmation of the Plan;
-- Nov. 7, 2016, as the last day for filing and serving evidence
and briefs in support of confirmation of the Plan; and
-- Nov. 10, 2016, as the last day to file a tabulation of
ballots regarding confirmation of the Plan.
About West Lane Properties
West Lane Properties Inc., based in Stockton, CA, filed a Chapter
11 petition (Bankr. E.D. Cal. Case No. 16-25217), on Aug. 9, 2016.
The Hon. Michael S. McManus presides over the case. Mark J.
Hannon, Esq. serves as bankruptcy counsel. In its petition, the
Debtor estimated $1 million in assets and $818,172 in liabilities.
The petition was signed by Hoc C. Ma, president. No official
committee of unsecured creditors has been appointed in the case.
WIZ-X INC: Hires Earnest Fiveash as Bankruptcy Attorney
-------------------------------------------------------
Wiz-X Inc. seeks authorization from the U.S. Bankruptcy Court for
the Western District of Tennessee to employ Earnest Fiveash as
attorney.
The Debtor requires Earnest Fiveash to:
(a) advise the Debtor(s) in Possession with respect to its
powers and duties as Debtor(s) in Possession in the continued
management and operation of its business;
(b) attend meetings and negotiate with the representatives of
the creditor(s) and other parties in interest, advise and consult
on the conduct of the case, including all of the legal and
administrative requirements of operating in Chapter 11;
(c) take all necessary action to protect and preserve the
Debtor(s) in Possession's estate, including prosecution of actions
on its behalf, the defense of any actions commenced against it,
negotiate concerning all litigation in which the Debtor(s) in
Possession is involved, and objections to claims filed against the
estate;
(d) prepare on behalf of the Debtor(s) in Possession all
motions, applications, answers, orders, reports and papers
necessary to the administration of the estate;
(e) negotiate and prepare on the Debtor(s) in Possession's
behalf, a plan of reorganization, disclosure statements, and all
related agreements and documents and take all necessary action on
behalf of the Debtor(s) in Possession to obtain confirmation of
such a plan;
(f) advise the Debtor(s) in Possession in connection with the
sales of assets;
(g) appear before theCourt, in any appellate Courts, and the
U.S. Trustee and protect the interest of the Debtor(s) in
Possession's estate before such Court and the U.S. Trustee; and,
(h) perform all other necessary legal services and provide all
necessary legal advice to the Debtor(s) in Possession in connection
with this Chapter 11 case.
Earnest Fiveash will be paid at an hourly rate of $200.00.
Before the September 30, 2016 petition date, Earnest Fiveash
received a total of $1,717.00 which was deposited in the Earnest
Fiveash-Regions Bank escrow account. The $1,717.00 was spent to
pay the filing fee of the case leaving a total of $0.00 to pay for
Fiveash's services.
Earnest E. Fiveash, Esq., 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.
Earnest Fiveash will be reached at:
Earnest E. Fiveash
EARNEST E. FIVEASH
2600 Poplar Avenue, Ste. 214
Memphis, TN 38112
Tel.: (901) 417-8356
About WIZ-X, INC.
Wiz-X, Inc., filed a chapter 11 petition (Bankr. W.D. Tenn. Case
No. 16-28955-E) on Sept. 30, 2016. The Debtor is represented by
Earnest E. Fiveash, Esq.
WMG ACQUISITION: Moody's Assigns Ba3 Rating on $630MM Sec. Notes
----------------------------------------------------------------
Moody's Investors Service assigned a Ba3 rating to WMG Acquisition
Corp.'s proposed aggregate $630 million senior secured notes due
2024 to be split between dollar-denominated and euro-denominated
tranches. WMG Acquisition Corp. is a wholly-owned subsidiary of
WMG Holdings Corp., which in turn is a wholly-owned subsidiary of
Warner Music Group Corp. Net proceeds from the notes plus cash
balances will be used to prepay the 2021 debt maturities comprising
the 6.25% senior secured notes (EUR158 million outstanding) and 6%
senior secured notes ($450 million outstanding). The rating
outlook is stable.
Ratings Assigned:
Issuer: WMG Acquisition Corp.
Dollar-Denominated Senior Secured Notes due 2024 -- Ba3 (LGD-3)
Euro-Denominated Senior Secured Notes due 2024 -- Ba3 (LGD-3)
The assigned rating is subject to review of final documentation and
no material change in the size, terms and conditions of the
transaction as advised to Moody's. Upon full repayment of the 2021
debt obligations, Moody's will withdraw the ratings.
RATINGS RATIONALE
Moody's views the transaction favorably due to the extension of the
debt maturity structure and lower interest expense compared to the
2021 obligations. The senior secured notes together with the
senior secured credit facilities share a first priority perfected
lien on substantially all domestic property and assets of WMG
Acquisition Corp. and WMG Holdings Corp. These debt instruments
are guaranteed by the company's wholly-owned domestic subsidiaries
and rated Ba3, one notch above WMG Holdings Corp.'s B1 Corporate
Family Rating (CFR), reflecting the benefits of the collateral
package and their senior position in the debt structure.
WMG Holdings Corp.'s B1 CFR reflects Moody's expectation that the
parent, WMG, will operate with financial leverage, as measured by
total debt to EBITDA, in the 5-5.75x range (including Moody's
standard adjustments) over the rating horizon. Moody's believes
WMG will experience further deleveraging from the current 5.7x
(Moody's adjusted, as of June 30, 2016) driven by EBITDA growth as
a result of lower costs associated with online music subscription
and advertising-supported streaming revenue, which is now its
largest and fastest growing revenue source, underpenetrated markets
worldwide for paid music streaming consumption and rising demand
for WMG's music content. The global recorded music industry
continues to transition from physical to digital music platforms,
download to streaming services and PC to mobile devices. Following
several years of decline, the industry managed to grow 3.2% in 2015
as digital formats expanded internationally, surpassing physical
for the first time and comprising 45% of industry revenue.
The B1 CFR is supported by WMG's position as the world's third
largest recorded music industry player with an extensive music
library and publishing assets, which drive recurring revenue
streams. Only a small percentage of WMG's annual revenue depends
on recording artists and songwriters without an established track
record, while the bulk of its revenue is generated by proven
artists or from its catalog (defined as albums older than 18
months) and thus isolated from the revenue volatility associated
with new releases from new artists. Ratings also recognize the
opportunities to grow revenue through the proliferation of online
music streaming services, and anticipate the higher margin
faster-growth digital revenue will lead to market share gains in
the recorded music segment.
Although the recorded music industry experienced growth last year,
the B1 CFR embeds the industry's lack of sustainable revenue growth
over the past two decades. The rating reflects the challenges
related to strategies that major record labels are pursuing to
adapt to the shift in demand for music content delivery to various
digital platforms as well as certain regulatory restraints that
preclude holders of music copyrights from maximizing royalties. It
also captures the increasing disparity between the hyper-growth of
ad-supported music streaming consumption relative to the slower
growth revenue generated by the same streams, which means WMG's
artists, songwriters and rights holders are not yet fully
monetizing value from this sub-segment. Digital piracy and illegal
online peer-to-peer file sharing continue to negatively impact
industry revenue, however less so than in the past given the
proliferation of legal low-cost and free ad-supported alternatives
for accessing premium music content. The B1 rating incorporates
the seasonal and cyclical nature of recorded music revenue (nearly
85% of WMG's revenue) and low visibility into the ultimate results
of upcoming release schedules. Moody's believes WMG will pursue
external growth through small tuck-in acquisitions funded with
excess cash flow and the potential sale of non-core assets.
Moody's expects the company to maintain a good liquidity profile
over the next 12-15 months.
Rating Outlook
The stable rating outlook reflects our expectation for continued
improvement in recorded music industry fundamentals combined with
WMG's position as the world's third largest music content provider
with global diversification and an enhanced recorded music
repertoire. Moody's expects WMG to operate with leverage as
measured by total debt to EBITDA in the 5-5.75x range (Moody's
adjusted) and anticipate EBITDA growth to be driven by improved
margins as a result of robust streaming revenue growth, value of
its music content, realized synergies, solid returns on artist
investments, marketing and branding, as well as enhancement of the
company's analytics talent.
What Could Change the Rating -- Up
Ratings could be upgraded if there is evidence of sustained growth
in the recorded music industry and WMG exhibits EBITDA margin
expansion as well as realization of lower earnings volatility and
higher returns on investments. Assurances that management will
maintain disciplined operating strategies for long-term growth,
exhibit prudent financial policies and target credit metrics
consistent with a higher rating resulting in total debt to EBITDA
leverage sustained comfortably below 4.5x (Moody's adjusted) and
free cash flow to adjusted debt in the mid-to-high single digit
range could also lead to an upgrade. Finally, for an upgrade to be
considered, Moody's would need clarity from the equity sponsor with
respect to the financial policy track record for each of its
portfolio company holdings as well as the long-term investment
philosophy and exit strategy for WMG.
What Could Change the Rating -- Down
Ratings could be downgraded if debt-financed acquisitions,
competitive pressures or increased artist and repertoire (A&R)
investments negatively impact revenue or EBITDA resulting in total
debt to EBITDA leverage sustained above 6x (Moody's adjusted), or
if heightened capital spending or financial sponsor related actions
result in negative free cash flow.
The principal methodology used in these ratings was Business and
Consumer Service Industry published in October 2016.
With headquarters in New York, NY, WMG Holdings Corp. is a
wholly-owned subsidiary of Warner Music Group Corp., a leading
music content provider operating domestically and overseas.
Revenue totaled approximately $3.2 billion for the twelve months
ended June 30, 2016.
WMG ACQUISITION: S&P Rates Proposed Sr. Notes Due 2024 'B'
----------------------------------------------------------
S&P Global Ratings assigned its 'B' issue-level ratings and '3'
recovery rating to New York City-based WMG Acquisition Corp.'s
proposed euro- and U.S. dollar-denominated senior secured notes due
2024. The '3' recovery rating indicates S&P's expectation for
meaningful recovery (50%-70%; upper half of the range) of principal
in the event of a payment default.
The company plans to use the net proceeds from the debt issuance to
repay all of the outstanding balance on its EUR157 million 6.25%
and $450 million 6% senior secured notes due 2021. Upon the
transaction's closing, S&P will withdraw its issue-level ratings on
these current outstanding senior secured notes. WMG Acquisition is
a subsidiary of Warner Music Group Corp. (WMG).
S&P's 'B' corporate credit rating on WMG incorporates the company's
large and well-diversified portfolio of recordings and compositions
across multiple genres and regions and its smaller market share
than its significantly larger peers. S&P expects that adjusted
leverage will remain above 5x through the end of the fiscal year
ending Sept. 30, 2017, pro forma for the transaction.
"Although we believe WMG would look for additional opportunities to
reduce leverage, we expect the company to prioritize its free cash
flow into investing in the business, leaving insufficient excess
cash flow to materially reduce leverage. Therefore, given the lack
of visibility regarding the pace of voluntary debt reduction, we
don't expect this strategy, by itself, to materially reduce
leverage. Rather, we expect leverage reduction primarily from
EBITDA growth. We forecast that EBITDA will grow about 10%-12% in
2016 and 8%-10% in 2017, which could result in adjusted leverage
declining to the low-5x area by the end of 2017," S&P said.
RATINGS LIST
Warner Music Group Corp.
Corporate Credit Rating B/Stable/--
New Ratings
WMG Acquisition Corp.
Senior Secured
Euro-denominated notes due 2024 B
Recovery Rating 3H
U.S. dollar-denominated notes due 2024 B
Recovery Rating 3H
ZOHAR CDO 2003: Tilton Pushes for Delay in Asset Sale
-----------------------------------------------------
Chris Dolmetsch, writing for Bloomberg News, reported that Lynn
Tilton took the witness stand in a Manhattan courtroom and urged a
judge to maintain a freeze on the sale of assets in one of her
former investment funds so she can renegotiate the terms of the
auction to get more bidders and a bigger recovery for investors.
According to the report, Tilton, the founder of Patriarch Partners
LLC, won a temporary halt to the auction in September after she
sued the trustee of the Zohar I distressed loan fund. She argued
that the planned sale was a sham structured to benefit MBIA Inc.,
the insurer that holds a $149 million claim on the collateral, the
report related.
As currently structured, the auction would "chill" interest and
frighten possible bidders for the collateral because it wouldn't
give them enough time for research, the report cited Ms. Tinton as
saying. The sale involves more than 100 financial assets and more
than 50 entities in more than 20 industries, she told U.S. District
Judge Jed Rakoff on Oct. 10, 2016, the report further related.
Judge Rakoff said he will rule on her request by Oct. 17, the
report noted.
The case is Patriarch Partners XV LLC vs. U.S. Bank National
Association, 16-cv-07128, U.S. District Court, Southern District of
New York (Manhattan.)
About Zohar CDO 2003-1
Patriarch Partners XV, LLC filed involuntary Chapter 11 bankruptcy
petitions against Zohar CDO 2003-1, Corp., Zohar CDO 2003-1,
Limited and Zohar CDO 2003-1, LLC (Bankr. S.D.N.Y. Case Nos.
15-23681 to 15-23682) on Nov. 22, 2015.
Patriarch Partners disclosed that it has filed, through one of its
affiliates, an involuntary Chapter 11 petition for Zohar CDO
2003-1, Limited. Patriarch is Zohar I's largest creditor, holding
$286.5 million face amount of Zohar I notes. Patriarch has placed
Zohar I into Chapter 11 in order to protect Zohar I and Patriarch
from the efforts of MBIA Inc. and MBIA Insurance Corporation,
another creditor of Zohar I, to obtain Zohar I's assets for
itself.
Patriarch claimed it has been forced to pursue this route because
of MBIA's fraudulent scheme to induce Patriarch XV to spend over
$103 million to buy out a third-party noteholder in Zohar-I to
facilitate a restructuring of Zohar-I.
Lynn Tilton is CEO of Patriarch.
Patriarch's restructuring counsel is Skadden, Arps, Slate, Meagher
& Flom LLP and its financial advisor is Moelis & Co.
*********
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