/raid1/www/Hosts/bankrupt/TCR_Public/161019.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 19, 2016, Vol. 20, No. 292
Headlines
1263 INVESTORS: Amends Disclosure Statement
362 ROUTE 108: Taps William S. Gannon as Legal Counsel
831 CHESTNUT: Seeks to Hire Berkshire Hathaway as Broker
A.C.G. CONTRACTING: Voluntary Chapter 11 Case Summary
ALEX K. AMUAH: To Pay 50% of Atlantic Utility's Unsecured Claim
AMBULATORY ENDOSCOPIC: Plan Filing Period Extended Thru Dec. 13
ANCESTRY.COM INC: Moody's Retains B2 CFR on Proposed Financing
ANTHONY LAWRENCE: Wants Plan Filing Period Extended to April 2017
ANTREL FLORIDA: U.S. Trustee Unable to Appoint Committee
ASSOCIATED THIRD PARTY: Case Summary & 20 Top Unsecured Creditors
ASSOCIATED THORACIC: Voluntary Chapter 11 Case Summary
ASSOCIATED WHOLESALERS: Wins Confirmation of 2nd Amended Plan
BAKKEN INCOME: Case Summary & 16 Unsecured Creditors
BARA HOLDINGS 23 EAST: Proposes to Use IDOR's Cash Collateral
BARA HOLDINGS 23 EAST: Proposes to Use IRS's Cash Collateral
BASIC ENERGY: Obtains Extension of Waiver on ABL Facility
BATTLE CREEK: Asks for Cash Access Until December
BERLIN PACKAGING: Moody's Affirms B3 CFR; Outlook Stable
BLANKENSHIP FARMS: Has Until Nov. 23 to File Chapter 11 Plan
BONANZA CREEK: S&P Lowers CCR to 'D' on Missed Interest Payment
BREITBURN ENERGY: Court Directs Appointment of Equity Committee
BREMAR DEVELOPMENT: U.S. Trustee Unable to Appoint Committee
BUCKSKIN REALTY: Court Refuses to Dismiss Clawback Suit vs. WHA
CAESARS ENTERTAINMENT: Extends Deadline to Finalize Amended Plan
CARAVAN II LLC: Wants Plan Filing Deadline Moved to January 2017
CATARINA CONSTRUCTION: Case Summary & 20 Top Unsecured Creditors
CF INDUSTRIES: S&P Lowers CCR to 'BB+', Outlook Negative
CLOUD PEAK: S&P Raises CCR to 'B-', Outlook Negative
DEER MEADOWS: Has Access to Cash Collateral Until Oct. 31
DENIS LEE ABRAMOWITZ: 5th Amended Plan, Disclosures Due on Oct. 28
DENMARK MANAGEMENT: Asks for Cash Access Until December
DOUBLE VISION: Taps BHHS Great Expectations as Realtor
DYNEGY INC: Unveils Key Terms of Genco Support Agreement
EMERALD OIL: Wants Plan Filing Period Moved Thru February 2017
EMMAUS LIFE: KPM Tech Reports 11.4% Stake as of Sept. 29
ENTERCOM COMMUNICATIONS: Moody's Affirms B1 CFR; Outlook Stable
ENTERCOM COMMUNICATIONS: S&P Affirms 'B+' CCR, Outlook Positive
ENTERPRISE CLOUDWORKS: Disclosures OK'd; Plan Hearing on Nov. 16
ENVIVA PARTNERS: S&P Assigns 'B+' CCR & Rates $300MM Notes 'B+'
ESPLANADE HL: Case Summary & Top Unsecured Creditors
EXCO RESOURCES: S&P Raises CCR to CCC+ on Capital Restructuring
FANSTEEL INC: Committee Hires MorrisAnderson as Financial Advisor
FANSTEEL INC: Committee Seeks to Employ Archer & Greiner as Counsel
FANSTEEL INC: Committee Taps Nyemaster Goode as Counsel
FARMHAND SUPPLY: Hires Theodore Eftink as Accountant
FARMHAND SUPPLY: Seeks to Employ Limbaugh Firm as Attorney
FILTRATION GROUP: Moody's Confirms B2 CFR; Outlook Negative
FILTRATION GROUP: S&P Assigns 'B' Rating on $104MM Term Loan
FIRST CAR PRO: U.S. Trustee Unable to Appoint Committee
FOUNDATION HEALTHCARE: Signs Asset Purchase Pact with Healthcrest
GAINESVILLE ALF: Seeks to Use Cash Collateral
GARDEN FRESH: Taps Piper Jaffray as Financial Advisor
GARDEN FRESH: Tiger Capital to Auction Assets on Oct. 24
GARDEN FRESH: U.S. Trustee Forms 5-Member Committee
GM OILFIELD: Proposes to Use Cash Collateral
GM OILFIELD: Taps McChristian & Jeans as Legal Counsel
GM OILFIELD: Taps Miranda & Maldonado as Legal Counsel
GOLFSMITH INT'L: Dick's Prepares Bid for U.S. Stores
GREENCROFT OBLIGATED: Fitch Affirms 'BB+' Rating on $43.98MM Bonds
GRM BAY WASH: Taps Michael Companies as Real Estate Broker
HAGGEN HOLDINGS: Seeks to Hire JLT Specialty as Broker
HANISH LLC: Says Creditor Dispute Delayed Plan Solicitation
HELLO NEWMAN: Voluntary Chapter 11 Case Summary
HORSEHEAD HOLDING: Court Moved Plan Exclusivity Period to Nov. 28
HORSEHEAD HOLDING: SSG Advised Equity Holders in Ch. 11 Case
ILLINOIS POWER: Inks Restructuring Support Agreement with Dynegy
INSTITUTE OF CARDIOVASCULAR: Plan Exclusivity Extended to Nov. 16
INTEGRATED FREIGHT: CFO Jace Simmons Resigns
INTERPACE DIAGNOSTICS: Names James Early Chief Financial Officer
JESUS CARES: Plan Confirmation Hearing on Nov. 17
KAISER GYPSUM: U.S. Trustee Forms 3-Member Committee
KLEEN LAUNDRY: Plan Confirmation Hearing on Nov. 15
LAKEWOOD DEVELOPMENT: Case Summary & 11 Unsecured Creditors
LIGHT TOWER: Hires Proskauer Rose as Counsel
LIGHT TOWER: Taps Zolfo Cooper as Financial Advisors
LINCOLN MEDICAL: Seeks Emergency Approval of Cash Collateral
LUCAS ENERGY: Files Amended Resale Prospectus with SEC
LYONDELL CHEMICAL: Blavatnik Faces Creditors in Trial
MAJESTIC AIR: Seeks to Use Cash Collateral to Fund Expenses
MARSH LAND: Seeks to Employ Patten Peterman as Ch. 11 Legal Counsel
MCK MILLENNIUM: Wants Plan Exclusivity Extended Thru Nov. 4
MICHAEL D. COHEN: Court Enters Final Order Approving Cash Use
MIMM CONDOMINIUM: Taps Omar Arcia as Special Counsel
MIMM CONDOMINIUM: U.S. Trustee Unable to Appoint Committee
MS ELMSFORD: Wants Plan Filing Period Extended to March 7
MS SCARSDALE: Seeks March 7 Exclusive Plan Filing Extension
NEW PHOENIX: Court Allows Cash Collateral Use on Interim Basis
NGL ENERGY: Moody's Assigns B2 Rating on Proposed $400MM Notes
NJOY INC: Committee Hires Fox Rothschild as Counsel
NORTEL NETWORKS: Canadian Unit Executes Global Support Agreement
NUTROGANICS INC: Files Chapter 7 Bankruptcy on Lack of Capital
NUVIRA HOSPITALITY: Plan Confirmation Hearing on Nov. 8
OLIVER C&I: Case Summary & 11 Unsecured Creditors
OXTON PLACE OF DOUGLAS: Asks for Approval to Use Cash Collateral
P3 FOODS: Wants to Use Cash Collateral Until Nov. 3
PALADIN ENERGY: Wants Cash Collateral Access Until Dec. 31
PALOSKI SALON: Can Use American Express Bank Cash Collateral
PARALLAX HEALTH: Working Capital Deficit Raise Going Concern Doubt
PARK GREEN: US Bank Bid for Turnover, Accounting Denied
PARK OVERLOOK: Trustee Hires LaMonica Herbst as Counsel
PC ACQUISITION: Asks for Cash Collateral Access Until December
PENNYMAC: Moody's Assigns B2 Long-Term Issuer Rating
PERSISTENCE PARTNERS: Names Jeffrey Hellman as Special Counsel
PFO GLOBAL: Signs Consulting Agreement with Former CFO
PHOENIX, AZ: Moody's Assigns Ba1 Rating on Facility Revenue Bonds
PILGRIM MEDICAL: Committee Taps Cullen & Dykman as Legal Counsel
PRECISION WELDING: Court Sets Dec. 22 Cash Collateral Hearing
QUANTUM MATERIALS: Extends Maturity of Conv. Debentures to 2018
QUANTUMSPHERE: Squar Milner LLP Casts Going Concern Doubt
QUOTIENT LIMITED: Closes $120 Million Secured Debt Financing
RAYMOND & ASSOCIATES: Wells Fargo Bid to Stop Cash Use Denied
RBK TRUCKING: Hires Robert Schroeder as Accountant
ROJESIE INC: Case Summary & 12 Unsecured Creditors
S&S SCREW: Court OKs Use of Regions Bank, IRS Cash Until Nov. 10
SAAD INC: Seeks Access to Cash Collateral Until Dec. 31
SEMLER SCIENTIFIC: Greg Garfield Quits as Director
SHULL PLUMBING: Has Until Nov. 30 to Use Libertyville Bank Cash
SIDNEY TRANSPORTATION: Can Use PNC Bank, Bemus Cash on Final Basis
SILVER LAKE: Case Summary & Unsecured Creditor
SKYPEOPLE FRUIT: Gets NASDAQ Delisting Notice on Late 10-K Filing
SMILES AND GIGGLES: Hires David Steen as Counsel
SNEED SHIPBUILDING: Wants Extent of IPFS Security Clarified
SNEED SHIPBUILDING: Wants Plan Exclusivity Period Moved to Oct. 31
SOUTHLAND PROPERTIES: Voluntary Chapter 11 Case Summary
ST. JOHN BATTLE CREEK: Asks for Cash Access Until December
ST. MICHAEL'S MEDICAL: Taps Risk Transfer as Consultant
STARCO VENTURES: San Remo's Disclosures Conditionally Okayed
SWORDS COMPANY: Taps Dunham Hildebrand as Legal Counsel
TEXAS ROAD ENTERPRISES: Names Robert Nisenson as Attorney
THO VAN PHAN: U.S. Trustee Forms 5-Member Creditors' Committee
TOTAL COMM SYSTEMS: J D Factors Agreement Has Final Approval
TOWN OF TUXEDO, NY: Moody's Cuts GO Rating to Ba1, Outlook Negative
TRI-G GROUP: Plan Filing Date Extended Through Nov. 30
TRIDENT BRANDS: Recurring Net Losses Raise Going Concern Doubt
TRIUMPH GROUP: Moody's Lowers Corporate Family Rating to Ba3
TROCOM CONSTRUCTION: Hires Petrowsky as Auctioneer
TUSCANY ENERGY: Allowed to Use Armstrong Bank Cash Until Nov. 10
TUSK ENERGY: Creditors' Panel Hires Stewart Robbins as Attorneys
UMATRIN HOLDING: Amends 100 Million Shares Prospectus with SEC
UNITED MOBILE: Needs More Time to Decide on Lease & File Exit Plan
VACA BRAVA: Plan Confirmation Hearing on Nov. 9
VIDEO DISPLAY: Insufficient Revenues Raise Going Concern Doubt
W.E. YODER: Wants $55K Insurance Premium Financing from Prime Rate
WADHWA DENTAL: Hires H Anthony Hervol as Attorney
WANK ADAMS: Wants $50K DIP Loan From Harry Spring
WESTECH CAPITAL: Trustee Taps GBKH, Prickett as Special Counsel
WHITESBURG REALTY: Isaac to Deal With Wal-Mart Lease Negotiations
[*] Egon Zehnder Issues Board Guidelines for Bankrupt Energy Firms
[*] Pinsonnault Joins Ankura's Turnaround & Restructuring Group
[] Gallagher Joins Ankura's Turnaround & Restructuring Practice
*********
1263 INVESTORS: Amends Disclosure Statement
-------------------------------------------
1263 Investors LLC submitted to the U.S. Bankruptcy Court for the
Eastern District of California an Amended Disclosure Statement in
support of its First Amended Plan of Reorganization.
The Amended Disclosure Statement contained more disclosures on
events that have transpired in the Debtor's cases to date.
The Debtor relates that payments and distributions under the Plan
will be funded by the sale of real property. All sales
contemplated by the Plan will be completed within 60 months of the
Plan Effective Date. It is the intention of the Debtor to complete
these sales in much less time.
As previously reported by the Troubled Company Reporter, the Plan
provides that the general unsecured creditors will receive
a pro rata payment of 50% of their allowed claims from the net
proceeds of the sale of the 7348 Crane Road property. The Debtor
believes that the general unsecured claim is approximately
$96,163.
A copy of the Disclosure Statement dated Oct. 9, 2016, is available
at http://bankrupt.com/misc/caeb16-90002-72.pdf
About 1263 Investors
1263 Investors, LLC, sought Chapter 11 protection (Bankr. E.D. Cal.
Case No. 16-90002) on Jan. 6, 2016. The Debtor estimated both
assets and liabilities in the range of $500,000 to $1 million.
Stephen M. Reynolds, at Reynolds Law Corp., serves as counsel to
the Debtor. The petition was signed by Daniel J. Shaw, the company
manager.
362 ROUTE 108: Taps William S. Gannon as Legal Counsel
------------------------------------------------------
362 Route 108 Realty Trust seeks approval from the U.S. Bankruptcy
Court for the District of New Hampshire to hire legal counsel in
connection with its Chapter 11 case.
The Debtor proposes to hire William S. Gannon, PLLC to give advice
regarding its duties, prepare its plan of reorganization, and
advise the Debtor regarding the sale of its assets.
William Gannon, Esq., will be paid an hourly rate of $450 for his
services. Meanwhile, the firm's paralegal and administrative
assistant will be paid $120 per hour.
In a court filing, Mr. Gannon disclosed that his firm is a
"disinterested person" as defined in section 101(14) of the
Bankruptcy Code.
The firm can be reached through:
William S. Gannon, Esq.
William S. Gannon, PLLC
889 Elm Street, 4th Floor
Manchester, NH 03101
Phone: 603-621-0833
Email: bgannon@gannonlawfirm.com
About 362 Route 108 Realty Trust
362 Route 108 Realty Trust sought protection under Chapter 11 of
the Bankruptcy Code (Bankr. D.N.H. Case No. 16-11405) on October 3,
2016. The petition was signed by G. Brandt Atkins, trustee.
At the time of the filing, the Debtor estimated assets and
liabilities of less than $1 million.
831 CHESTNUT: Seeks to Hire Berkshire Hathaway as Broker
--------------------------------------------------------
831 Chestnut, LLC seeks approval from the U.S. Bankruptcy Court for
the Middle District of Pennsylvania to hire a real estate broker.
The Debtor proposes to hire Berkshire Hathaway HomeServices
Homesale Realty to sell its real property in Lebanon City,
Pennsylvania. The property will be sold for $850,000.
Berkshire Hathaway will receive a commission of 6% of the sale
proceeds, according to court filings.
Jesse Gantt, an agent with Berkshire, disclosed in a court filing
that the firm does not have any interest adverse to the Debtor's
bankruptcy estate or its creditors.
The firm can be reached through:
Jesse Gantt
Berkshire Hathaway HomeServices
Homesale Realty
3435 Market Street
Camphill, PA 17011
Tel: 717-761-7900
Cell: 717-903-9766
The Debtor is represented by:
Markian R. Slobodian, Esq.
Law Offices of Markian R. Slobodian
831 Chestnut, LLC
801 North Second Street
Harrisburg, PA 17102
Tel: (717) 232-5180
About 831 Chestnut
831 Chestnut, LLC sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. M. D. Pa. Case No. 14-04814) on October 16,
2014.
At the time of the filing, the Debtor estimated assets and
liabilities of less than $1 million.
A.C.G. CONTRACTING: Voluntary Chapter 11 Case Summary
-----------------------------------------------------
Debtor: A.C.G. Contracting, L.L.C.
214 Pope's Island Road
Milford, CT 06461
Tel: 203-675-1850
Case No.: 16-31588
Nature of Business: Single Asset Real Estate
Chapter 11 Petition Date: October 17, 2016
Court: United States Bankruptcy Court
District of Connecticut (New Haven)
Judge: Hon. Ann M. Nevins
Debtor's Counsel: David A. Scalzi, Esq.
921 Stillwater Road
Stamford, CT 06902
Tel: (203) 323-8232
Fax: 203-323-0508
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $0 to $50,000
The petition was signed by Moises Prieto, sole member.
The Debtor did not include a list of its largest unsecured
creditors when it filed the petition.
ALEX K. AMUAH: To Pay 50% of Atlantic Utility's Unsecured Claim
---------------------------------------------------------------
Alex K. Amuah filed with the U.S. Bankruptcy Court for the District
of Maryland an amended disclosure statement describing the Debtor's
plan of reorganization.
Under the Plan, Class 10 General Unsecured Claims include Atlantic
Utility Investors, LLC, in the sum of $476.64 and Fairwood
Community Association in the sum of $1,386. The Debtor proposes
paying 50% of unsecured claims unto Atlantic Utility Investors,
LLC, in the sum of $238.32 and Fairwood Community Association in
the sum of $693 in full by way of lump sum distributions in the
amounts due and payable on or before the third annual anniversary
following plan approval. Holders of Unsecured Claims in Class 10
are impaired by the Plan.
Funds currently held by the Debtor, currently in the sum of
approximately $27,000 (estimated to exceed $30,000 by Jan. 1,
2017), have been proposed to be immediately distributed under the
Debtor's Plan to administrative and priority claims and in pay-down
of various of Debtor's outstanding mortgage obligations,
collectively to the extent they exist.
The Amended Disclosure Statement is available at:
http://bankrupt.com/misc/mdb14-13667-193.pdf
Alex K. Amuah is a resident of Prince George's County, Maryland.
He is presently employed as a property development manager for
Marketing, Trade and Development Consultants, Inc., a Maryland
corporation, doing business as MTD Consult, Inc.
The Debtor sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. D. Md. Case No. 14-13667). The case is assigned to
Judge Wendelin I. Lipp.
The Debtor is represented by:
Douglas N. Gottron, Esq.
MORRIS PALERM, LLC
2 Barrister's Place
751 Rockville Pike
Rockville, MD 20852
Tel: (301) 424-6290
Fax: (240) 778-6873
Email: dgottron@morrispalerm.com
AMBULATORY ENDOSCOPIC: Plan Filing Period Extended Thru Dec. 13
---------------------------------------------------------------
The Honorable Jean K. FitzSimon of the U.S. Bankruptcy Court for
the Eastern District of Pennsylvania extended the exclusive periods
for Ambulatory Endoscopic Surgical Center of Bucks County, LLC and
Regional Gastrointestinal Consultants, P.C., to file a plan of
reorganization through and including Dec. 13, 2016, and to solicit
acceptance of any such plan through and including Feb. 10, 2017.
As reported earlier by the Troubled Company Reporter, the Debtors
asked the Court for an extension of their exclusive periods in
order for them to evaluate and engage in negotiations regarding the
proofs of claim prior to filing a plan, so that they can file a
viable plan.
About Ambulatory Endoscopic Surgical Center
of Bucks County, LLC.
Ambulatory Endoscopic Surgical Center of Bucks County, LLC and
Regional Gastrointestinal Consultants, P.C. sought protection under
Chapter 11 of the Bankruptcy Code (Bankr. E. D. Pa. Lead Case No.
16-13517) on May 17, 2016. The petitions were signed by Andrew T.
Fanelli, sole member of Ambulatory Endoscopic. The cases are
assigned to Judge Eric L. Frank. The Debtors are represented by
Jeffrey S. Cianciulli, Esq., at Weir & Partners LLP. At the time
of the filing, the Debtors estimated their assets at $100,000 to
$500,000, and liabilities at $1 million to $10 million.
ANCESTRY.COM INC: Moody's Retains B2 CFR on Proposed Financing
--------------------------------------------------------------
Moody's said while Ancestry.com Inc.'s (B2, stable outlook)
dividend increase is a credit negative, the change in the proposed
capital structure will modestly improve liquidity. The B2
corporate family rating, SGL 2, B1 first lien ratings and Caa1
second lien rating on the proposed debt, and the stable outlook,
are all unaffected by the changes. The ratings on the existing
debt facilities are also unchanged and will be withdrawn at closing
of the refinancing, as previously planned.
ANTHONY LAWRENCE: Wants Plan Filing Period Extended to April 2017
-----------------------------------------------------------------
Anthony Lawrence of New York, Inc. requests the U.S. Bankruptcy
Court for the Eastern District of New York to extend the Debtor's
exclusive period to file a plan through and including April 15,
2017, and the Debtor's exclusive period to solicit acceptances of
that plan through and including June 15, 2017.
The Debtor relates that it has been required to focus on its
litigation with its former counsel, Anthony Pagano, Esq. instead of
devoting this time to implement and move forward with confirmation
of a plan of reorganization. The Debtor further relates that it is
still focused on this litigation since there is no resolution as of
yet, and it is absolutely critical that the Debtor get this
litigation resolved prior to filing a plan of reorganization to
know what funds the Debtor might have to formulate a plan of
reorganization.
In addition, the Debtor submits that it has also been focusing on
its operations, and the Debtor is confident that it can reorganize
and formulate a successful chapter 11 plan once the litigation with
Mr. Pagano has been resolved and brought to a conclusion.
Anthony Lawrence of New York, Inc. is represented by:
Rachel S. Blumenfeld, Esq.
Law Office of Rachel S. Blumenfeld
26 Court Street, Suite 2220
Brooklyn, NY 11242
Telephone: (718) 858-9600
About Anthony Lawrence of New York, Inc.
Headquartered in Long Island City, New Yok, Anthony Lawrence of New
York, Inc., filed for Chapter 11 bankruptcy protection (Bankr.
E.D.N.Y. Case No. 15-44702) on Oct. 15, 2015, estimating its assets
at up to $50,000 and its liabilities at between $1 million and $10
million. The petition was signed by Joseph J. Calagna, president.
Judge Elizabeth S. Stong presides over the case. James P Pagano,
Esq., who has an office in New York, serves as the Debtor's
bankruptcy counsel.
ANTREL FLORIDA: U.S. Trustee Unable to Appoint Committee
--------------------------------------------------------
The Office of the U.S. Trustee on Oct. 14 disclosed in a court
filing that no official committee of unsecured creditors has been
appointed in the Chapter 11 case of Antrel Florida Business, LLC.
Antrel Florida Business, LLC, filed a Chapter 11 petition (Bankr.
S.D. Fla. Case No. 16-22282) on September 4, 2016. The petition
was signed by Fabrizio Cozzetti Petecof, president. The Debtor is
represented by Matis H. Abarbanel, Esq., at Loan Lawyers, LLC. The
Debtor estimated assets and liabilites at $500,001 to $1 million at
the time of the filing.
ASSOCIATED THIRD PARTY: Case Summary & 20 Top Unsecured Creditors
-----------------------------------------------------------------
Debtor affiliates filing separate Chapter 11 bankruptcy petitions:
Debtor Case No.
------ --------
Associated Third Party Administrators 16-23679
222 N. Sepulveda Blvd., #2000
El Segundo, CA 90245
Allied Fund Administrators LLC 16-23682
222 N. Sepulveda Blvd., #2000
El Segundo, CA 90245
Chapter 11 Petition Date: October 17, 2016
Court: United States Bankruptcy Court
Central District of California (Los Angeles)
Judge: Hon. Sandra R. Klein
Debtors' Counsel: Ron Bender, Esq.
LEVENE, NEALE, BENDER, YOO & BRILL L.L.P
10250 Constellation Blvd Ste 1700
Los Angeles, CA 90067
Tel: 310-229-1234
E-mail: rb@lnbyb.com
- and -
Jacqueline L James, Esq.
LEVENE, NEALE, BENDER, YOO & BRILL L.L.P.
10250 Constellation Blvd Ste 1700
Los Angeles, CA 90067
Tel: 310-229-1234
Fax: 310-229-1244
E-mail: jlj@lnbyb.com
- and -
Eve H Karasik, Esq.
LEVENE, NEALE, BENDER, YOO & BRILL L.L.P
10250 Constellation Blvd., Ste. 1700
Los Angeles, CA 90067
Tel: 310-229-1234
Fax: 310-229-1244
E-mail: ehk@lnbyb.com
- and -
Lindsey L Smith, Esq.
LEVENE, NEALE, BENDER, YOO & BRILL L.L.P
10250 Constellation Blvd Ste 1700
Los Angeles, CA 90067
Tel: 310-229-1234
Fax : 310-229-1244
E-mail: lls@lnbyb.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $10 million to $50 million
The petition was signed by Henry D. Ritter, president and chief
executive officer.
A copy of Associated Third's list of 20 largest unsecured creditors
is available for free at http://bankrupt.com/misc/cacb16-23679.pdf
ASSOCIATED THORACIC: Voluntary Chapter 11 Case Summary
------------------------------------------------------
Debtor: Associated Thoracic & Cardiovascular Surgeons, Ltd.
8415 N. Pima Road, Suite 100
Scottsdale, AZ 85258
Case No.: 16-11909
Nature of Business: Health Care
Chapter 11 Petition Date: October 14, 2016
Court: United States Bankruptcy Court
District of Arizona (Phoenix)
Judge: Hon. Brenda K. Martin
Debtor's Counsel: Lamar D. Hawkins, Esq.
AIKEN SCHENK HAWKINS & RICCIARDI, P.C.
2390 East Camelback Road, Suite 400
Phoenix, AZ 85016-3479
Tel: 602-248-8203
Fax: 602-248-8840
E-mail: dlh@ashrlaw.com
Estimated Assets: $500,000 to $1 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Herman Pang, president.
The Debtor did not include a list of its largest unsecured
creditors when it filed the petition.
ASSOCIATED WHOLESALERS: Wins Confirmation of 2nd Amended Plan
-------------------------------------------------------------
The Hon. Kevin J. Carey of the U.S. Bankruptcy Court for the
District of Delaware confirmed the modified second amended Chapter
11 plan of liquidation of ADI Liquidation Inc. fka AWI Delaware and
its debtor-affiliates.
The Debtors will file and serve a notice of effective date of plan,
which will, among other things, provide a deadline for all entities
holding or wishing to assert professional fee claims,
administrative claims arising on and subsequent to Nov. 12, 2014,
or claims for damages on account of the rejection of executory
contracts and unexpired leases pursuant to the plan.
As reported by the Troubled Company Reporter on Aug. 25, 2016, the
deadline to vote to accept or reject the Debtors' plan expired on
Sept. 20, 2016, at 5:00 p.m. (prevailing Eastern Time). The plan,
disclosure statement, and all other relevant materials are
available at http://dm.epiq11.com/AWI,or may be obtained by
contacting Epiq Bankruptcy Solutions LLC, the Debtors' balloting
agent, (i) by email at tabulation@epiqsystems.com or (ii) by
telephone at (646) 282-2400.
As reported by the Troubled Company Reporter on Aug. 24, 2016,
under the Debtors' plan, Class 3A general unsecured creditors of
the AWI Debtors and Class 3B general unsecured creditors of the WR
Debtors will receive cash in the amount of the allowed claims
multiplied by the initial, subsequent or final distribution
percentage and, if applicable, a catch-up distribution.
Class 3A and Class 3B creditors assert a total of $196 million and
$184 million in claims, respectively.
The total amount of allowed Class 3A claims is estimated at $136
million, down from the previous estimate of $149 million.
Meanwhile, the total amount of allowed Class 3B claims is estimated
at $119 million, down from the previous estimate of $132 million,
according to the latest disclosure statement explaining the plan.
A copy of the disclosure statement is available for free at
https://is.gd/5RDS25
About Associated Wholesalers
Founded in 1962 and headquartered in Robesonia, Pennsylvania,
Associated Wholesalers Inc. serviced 800 supermarkets, specialty
stores, convenience stores and superettes with grocery, meat,
produce, dairy, frozen foods and general merchandise/health and
beauty care products. AWI, with distribution facilities in
Robesonia, Pennsylvania, and York, Pennsylvania, served the
mid-Atlantic United States. AWI is owned by its 500 retail
members, who in turn operate supermarkets. AWI had 1,459
employees.
White Rose Inc. is a food wholesaler and distributor serving the
greater New York metropolitan area. The company traces its origins
to 1886, when brothers Joseph and Sigel Seeman founded Seeman
Brothers & Doremus to provide grocery deliveries throughout New
York City. White Rose carries out its operations through three
leased warehouse and distribution centers, two of which area
located in Carteret, New Jersey, and one in Woodbridge, New Jersey.
White Rose has 777 employees.
Associated Wholesalers and its affiliates sought Chapter 11
bankruptcy protection on Sept. 9, 2014, to sell their assets under
11 U.S.C. Sec. 363 to C&S Wholesale Grocers, absent higher and
better offers. The Debtors were granted joint administration of
their Chapter 11 cases for procedural purposes, under the lead case
of AWI Delaware, Inc., Bankr. D. Del. Case No. 14-12092.
As of the Petition Date, the Debtors owed the Bank Group
(consisting of lenders, Bank of America, N.A., Bank of American
Securities LLC as sole lead arranger and joint book runner, Wells
Fargo Capital Finance, LLC as joint book runner and syndication
agent, and RBS Capita, as documentation agent) an aggregate
principal amount of not less than $131,857,966 (inclusive of
outstanding letters of credit), plus accrued interest. The Debtors
estimate trade debt of $72 million. AWI Delaware disclosed $11,440
in assets and $125,112,386 in liabilities as of the Chapter 11
filing.
Saul Ewing LLP and Rhoads & Sinon LLP serve as legal advisors to
the Debtors, Lazard Middle Market serves as financial advisor, and
Carl Marks Advisors as restructuring advisor to AWI. Carl Marks'
Douglas A. Booth has been tapped as chief restructuring officer.
Epiq Systems serves as the claims agent.
The Official Committee of Unsecured Creditors is represented by
David B. Stratton, Esq., and Evelyn J. Meltzer, Esq., at Pepper
Hamilton, LLP, in Wilmington, Delaware; and Mark T. Power, Esq.,
and Christopher J. Hunker, Esq., at Hahn & Hessen LLP, in New York.
The Committee also has retained Capstone Advisory Group, LLC,
together with its wholly-owned subsidiary Capstone Valuation
Services, LLC, as its financial advisors.
The Troubled Company Reporter, on Nov. 5, 2014, reported that the
Bankruptcy Court authorized Associated Wholesalers to sell
substantially all of its assets, including their White Rose grocery
distribution business, to C&S Wholesale Grocers, Inc. The C&S
purchase price consists of the lesser of the amount of the bank
debt, which totals about $18.1 million and $152 million, plus other
liabilities, which amount is valued at $194 million. C&S,
according to Bill Rochelle and Sherri Toub, bankruptcy columnists
for Bloomberg News, ended up paying $86.5 million more cash to be
anointed as the winner at the auction.
Associated Wholesalers, which changed its name to AWI Delaware,
Inc., prior to the approval of the sale. AWI Delaware notified the
Bankruptcy Court on Nov. 12, 2014, that closing occurred in
connection with the sale of their assets to C&S. AWI Delaware then
changed its name to ADI Liquidation, Inc., following the closing of
the sale.
As reported in the Feb. 29 edition of the TCR, ADI Liquidation,
Inc., f/k/a AWI Delaware, Inc., filed with the U.S. Bankruptcy
Court for the District of Delaware a Chapter 11 plan of liquidation
and an accompanying disclosure statement.
The TCR reported on July 29, 2016, that ADI Liquidation, Inc., et
al., filed with the U.S. Bankruptcy Court for the District of
Delaware a disclosure statement relating to the first amended
Chapter 11 plan of liquidation. The Disclosure Statement is
available at http://bankrupt.com/misc/deb14-12092-3063.pdf
BAKKEN INCOME: Case Summary & 16 Unsecured Creditors
----------------------------------------------------
Debtor: Bakken Income Fund LLC
5251 DTC Parkway, Suite 200
Englewood, CO 80111
Case No.: 16-20212
Chapter 11 Petition Date: October 17, 2016
Court: United States Bankruptcy Court
District of Colorado (Denver)
Judge: Hon. Elizabeth E. Brown
Debtor's Counsel: Michael J. Pankow, Esq.
BROWNSTEIN HYATT FARBER SCHRECK
410 17th St., 22nd Fl.
Denver, CO 80202
Tel: 303-223-1100
Fax: 303-223-1111
E-mail: mpankow@bhfs.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Randall Kenworthy, managing member.
A copy of the Debtor's list of 16 unsecured creditors is available
for free at http://bankrupt.com/misc/cob16-20212.pdf
BARA HOLDINGS 23 EAST: Proposes to Use IDOR's Cash Collateral
-------------------------------------------------------------
Bara Holdings 23 East LLC filed with the U.S. Bankruptcy Court for
the Northern District of Illinois a motion seeking approval to use
cash collateral of the Illinois Department of Revenue.
The Debtor said it has encountered difficulty paying its
obligations to the IDOR for sales taxes, food and beverage taxes
and withholding taxes. In June 2016, the total amount due to IDOR
was $186,152.
IDOR initially recorded tax liens against the Debtor for the
approximate amount of $118,000 on April 16, 2013.
The Debtor believes that IDOR has an interest in its revenues that
requires the Debtor to obtain authorization to use cash collateral
of IDOR and to provide it with adequate protection.
The Debtor has an immediate need to use cash collateral of IDOR to
operate the restaurant and bar. The Debtor also needs to use the
cash the cash collateral to finance its Chapter 11 reorganization.
The Debtor asks the Court to grant it approval to use IDOR cash
collateral to operate the restaurant and bar for an interim period
of 90 days.
The proposed Interim Order provides that the Debtor will be granted
the right to use cash collateral from Sept. 21, 2016 through
December 2016. As adequate protection, IDOR will receive
replacement liens and payment of $4,000 per month.
The Debtor's attorney:
Karen J. Porter
PORTER LAW NETWORK
230 West Monroe, Suite 240
Chicago, IL 60606
Tel: (312) 372-4400
Fax: (312) 372-4160
About Bara Holdings 23 East
Bara Holdings 23 East LLC is an Illinois limited liability company
that was established in 2010. It is engaged in the business of
operating an Italian restaurant and bar located at 23 East Jackson
Blvd., Chicago, Illinois, which opened in 2011.
Bara Holdings 23 East LLC filed a Chapter 11 petition (Bankr. N.D.
Ill. Case No. 16-30069) on Sept. 21, 2016. The Debtor estimated
less than $1 million in assets and debt. The Debtor tapped Karen J
Porter, Esq., at Porter Law Network, as counsel.
The Debtor will continue to manage its business and property as a
debtor-in-possession. No trustee or creditors committee has been
appointed by the court.
The Debtor intends to continue the operation of the Italian
restaurant and bar and to reorganize its financial affairs.
The Debtor filed two previous Chapter 11 cases. The first case,
Case No. 12-33535, was filed on Aug. 23, 2012, and was dismissed on
March 11, 2013. The second case, Case No. 13-26593, was filed on
June 28, 2013, and closed on April 23, 2014, after the confirmation
of a 100% repayment plan and the entry of a final decree.
BARA HOLDINGS 23 EAST: Proposes to Use IRS's Cash Collateral
------------------------------------------------------------
Bara Holdings 23 East LLC filed with the U.S. Bankruptcy Court for
the Northern District of Illinois a motion seeking approval to use
cash collateral of the Internal Revenue Service.
The IRS recorded three tax liens against the Debtor in 2013. The
Debtor believes that the IRS has an interest in its revenues that
requires the Debtor to obtain authorization to use cash collateral
of the IRS and to provide it with adequate protection.
The Debtor asks the Court to grant it approval to use IDOR cash
collateral to operate the restaurant and bar for an interim period
of 90 days.
The proposed Interim Order provides that the Debtor will be granted
the right to use cash collateral from Sept. 21, 2016 through
December 2016. As adequate protection, the IRS will receive
replacement liens and adequate protection payment of $2,000 per
month beginning on Oct. 1, 2016.
About Bara Holdings 23 East
Bara Holdings 23 East LLC is an Illinois limited liability company
that was established in 2010. It is engaged in the business of
operating an Italian restaurant and bar located at 23 East Jackson
Blvd., Chicago, Illinois, which opened in 2011.
Bara Holdings 23 East LLC filed a Chapter 11 petition (Bankr. N.D.
Ill. Case No. 16-30069) on Sept. 21, 2016. The Debtor estimated
less than $1 million in assets and debt. The Debtor tapped Karen J
Porter, Esq., at Porter Law Network, as counsel.
The Debtor will continue to manage its business and property as a
debtor-in-possession. No trustee or creditors committee has been
appointed by the court.
The Debtor intends to continue the operation of the Italian
restaurant and bar and to reorganize its financial affairs.
The Debtor filed two previous Chapter 11 cases. The first case,
Case No. 12-33535, was filed on Aug. 23, 2012, and was dismissed on
March 11, 2013. The second case, Case No. 13-26593, was filed on
June 28, 2013, and closed on April 23, 2014, after the confirmation
of a 100% repayment plan and the entry of a final decree.
BASIC ENERGY: Obtains Extension of Waiver on ABL Facility
---------------------------------------------------------
Basic Energy Services, Inc., on Oct. 18, 2016, disclosed that the
Company has successfully obtained an extension of its temporary
waiver from Basic's secured asset-based revolver (the "ABL
Facility") lenders. As previously announced on Oct. 17, 2016, the
Company was seeking an additional extension of its temporary waiver
of certain existing and future defaults under the ABL Facility in
order to finalize the terms of a deleveraging transaction with its
creditors. Basic has now received an additional seven day
extension of the temporary waiver, through Oct. 24, 2016, subject
to certain terms and conditions.
The Company continues to have, and expects to have, adequate
liquidity to continue its efficient and uninterrupted operations in
the ordinary course and to meet all of its obligations to
suppliers, customers and employees.
About Basic Energy Services
Basic Energy Services -- http://www.basicenergyservices.com/--
provides well site services essential to maintaining production
from the oil and gas wells within its operating area. The Company
employs over 3,500 employees in more than 100 service points
throughout the major oil and gas producing regions in Texas,
Louisiana, Oklahoma, New Mexico, Arkansas, Kansas, California and
the Rocky Mountain and Appalachian regions.
BATTLE CREEK: Asks for Cash Access Until December
-------------------------------------------------
Battle Creek Realty, LLC, filed a motion asking the U.S. Bankruptcy
Court for the Eastern District of Michigan for approval to use cash
collateral.
The Debtor, which owns mobile home parks, says the majority of its
value arises from its ongoing operations and its ability to
continue collecting lot rent. Without authority to use cash
collateral, the Debtor believes it will suffer irreparable harm
because it will be forced to immediately shut down and force
low-income families out of their homes.
During the first 60 days of the case, the Debtor projects that it
will need to spend $45,248 to avoid immediate and irreparable
harm.
On the Petition Date, the Debtor, without admission, believes that
the cash collateral, as defined in 11 U.S.C. Sec. 363, consists of
cash and accounts receivable. At this time, the Debtor is unable
to provide the value of the cash collateral, because the
documentation and information is believed to be in the possession
of the state court receiver. The Debtor believes that all parties
will be advised of the value of the cash collateral when the
receiver provides an accounting to the Court pursuant to 11 U.S.C.
Sec. 543.
Before the Petition Date, the Debtor entered into a loan with Park
Capital Investments, LLC, and related security instruments. The
Debtor anticipates that PCI will assert a security interest in the
Debtor's cash collateral.
The Debtor requires the use of cash collateral to make payments as
are necessary for the continuation of its business as shown in its
proposed budget. The budget forecasts income from leases of
$23,000 per month and total expenses of $22,624 per month for
October to December.
As adequate protection under Sec. 363 and 361 of the Bankruptcy
Code, the Debtor will provide PCI replacement liens in the Debtor's
personal property and the proceeds and products thereof. As
additional adequate protection, the Debtor will pay all personal
property taxes, real property taxes, maintenance expenses and wages
in connection with preserving the property.
As part of its request to use cash collateral, the Debtor is
requesting that the Court allow it to escrow, on a monthly basis,
$5,000 into the client trust account of its proposed counsel to pay
the professional fees of legal counsel employed by the Debtor in
connection with the bankruptcy proceeding to the extent the fees
are allowed by the Court.
About Battle Creek Realty
Battle Creek Realty, LLC, owns three mobile home parks in Michigan,
which, together, have over 200 lots.
Battle Creek Realty filed a Chapter 11 petition (Bankr. E.D. Mich.
Case No. 16-53192) on Sept. 25, 2016. The Hon. Maria L. Oxholm is
the case judge.
The Debtor estimated $0 to $50,000 in assets and $10 million to $50
million in liabilities.
Related entities PC Acquisition LLC, St. John/Battle Creek Owners,
LLC, Denmark Management Company and Denmark Services, LLC,
simultaneously sought Chapter 11 protection.
The Debtors tapped Ernest Hassan, Esq., at Stevenson & Bullock,
P.L.C., in Southfield, Michigan as counsel.
No trustee or examiner has been appointed in the cases and no
committee has been appointed or designated.
BERLIN PACKAGING: Moody's Affirms B3 CFR; Outlook Stable
--------------------------------------------------------
Moody's Investors Service affirmed Berlin Packaging LLC's B3
corporate family rating and B3-PD probability of default rating
following the company's announcement that it would add on $190
million to the first lien term loan. The proceeds of the add-on
term loan, along with assumed debt of the target, will be used to
fund an acquisition. The transaction is expected to close in
November 2016. Instrument ratings are detailed below and the
rating outlook is stable.
Moody's took these actions:
Berlin Packaging LLC
-- Affirmed corporate family rating, B3
-- Affirmed probability of default rating, B3-PD
-- Affirmed $75 million senior secured 1st lien revolving
credit facility due 2019, B2 (LGD3)
-- Affirmed $835 million (includes $190 million add-on term
loan) senior secured 1st lien term due 2021, B2 (LGD3)
-- Affirmed $220 million senior secured 2nd lien term loan due
2022, Caa2 (LGD5)
The rating outlook is stable.
The ratings are subject to the receipt and review of the final
documentation.
RATINGS RATIONALE
The affirmation of the B3 CFR despite the increase in pro forma
leverage reflects the anticipated benefits from acquisitions, the
elimination of various onetime charges and productivity
initiatives. The affirmation also reflects the company's continued
good free cash generation and good liquidity. The company is
expected to use free cash flow for accretive acquisitions or debt
reduction. Credit metrics are expected to improve over the next 12
to 18 months, but remain within the rating category.
The B3 Corporate Family Rating reflects Berlin's high leverage,
small size and fragmented market. The rating is constrained by
Berlin's largely commoditized product line and substantial portion
of business not under contract. While some business is under
contract, contracts are cancelable and do not include a
formula-based pass-through of raw material cost increases but allow
for pass-through of price increases from suppliers with sufficient
notice. The rating also reflects the company's acquisition
strategy and financial aggressiveness.
Strengths in Berlin's profile include its good competitive position
and exposure to more stable end markets, such as food and beverage
and pharmaceuticals. As a distributor and service provider, Berlin
does not require high capital expenditures or working capital
investments and has the ability to generate meaningful free cash
flow in the absence of high leverage. The rating also reflects
expectations of continued growth in the business.
The rating could be upgraded if Berlin improves its leverage
sustainably to below 5.75 times, increases funds from operations to
debt to over 8.0% and EBITDA to interest expense remains over 2.75
times. An upgrade would also be contingent upon the maintenance of
good liquidity and stability in the operating and competitive
environment.
The rating could be downgraded if Berlin fails to improve credit
metrics or if leverage increases due to a significant debt-financed
acquisition. The rating could also be downgraded as a result of
any deterioration in operating and competitive environment and
liquidity. Specifically, the rating could be downgraded if the
company fails to reduce debt/EBITDA below 6.0 times and improve
funds from operations to debt to over 6.0% and/or EBITDA to
interest expense declines below 2.0 times.
The principal methodology used in these ratings was Packaging
Manufacturers: Metal, Glass, and Plastic Containers published in
September 2015.
Based in Chicago, Illinois, Berlin Packaging LLC is a Hybrid
Packaging Supplier of plastic, glass, and metal containers and
closures. Berlin also provides various services to the industry
including design, consulting, warehousing, and financing services.
For the twelve months ended June 30, 2016, pro forma sales totaled
approximately $1.2 billion. Berlin has been a portfolio company of
Oak Hill Capital Partners since 2014.
BLANKENSHIP FARMS: Has Until Nov. 23 to File Chapter 11 Plan
------------------------------------------------------------
Judge Jimmy L. Croom of the U.S. Bankruptcy Court for the Western
District of Tennessee extended Blankenship Farms, LP's exclusive
periods to file a chapter 11 plan to November 23, 2016, and the
period to solicit acceptances to the plan to January 22, 2017.
As earlier reported by the Troubled Company Reporter, the Debtor
asked for a 120-day extension of its exclusive periods, telling the
Court that it will be better able to formulate a plan after harvest
and at a time when the substantial farming operations for the 2016
crop year are complete. The Debtor relates that its farming
operations are currently ongoing and the 2016 crop of soybeans is
currently planted and being maintained and sprayed. The Debtor
adds that it will benefit from the certainty that harvest will
bring later this fall because it will demonstrate that the farming
operations are providing a benefit to the bankruptcy estate and
that creditors will be able to be repaid under a chapter 11 plan.
About Blankenship Farms
Headquartered in Parsons, Tennessee, Blankenship Farms, LP, is an
active Tennessee limited partnership whose primary business is
farming operations for row crop and cattle. It filed for Chapter 11
bankruptcy protection (Bankr. W.D. Tenn. Case No. 16-10840) on
April 27, 2016, estimating its assets and liabilities at between $1
million and $10 million. The petition was signed by James Trent
Blankenship, president of TWB Management Inc., general partner of
Debtor. Judge Jimmy L. Croom presides over the case. Robert
Campbell Hillyer, Esq., at Butler Snow LLP serves as the Debtor's
bankruptcy counsel.
BONANZA CREEK: S&P Lowers CCR to 'D' on Missed Interest Payment
---------------------------------------------------------------
S&P Global Ratings lowered its corporate credit rating on
U.S.-based oil and gas exploration and production company Bonanza
Creek Energy Inc. to 'D' from 'CC'.
At the same time, S&P lowered its issue-level ratings on the
company's senior unsecured notes to 'D' from 'CC'. The recovery
rating on the senior unsecured notes remains '6', indicating S&P's
expectation of negligible (0% to 10%) recovery in the event of a
payment default.
"The downgrade follows Bonanza Creek's announcement that it elected
not to make the Oct. 15, 2016 interest payment on the 6.75% senior
unsecured notes due 2021," said S&P Global Ratings credit analyst
Daniel Krauss.
S&P will look to withdraw the ratings on Bonanza Creek if it does
not make the interest payment within the 30-day grace period, or
will raise the ratings from 'D' if it makes the payment within the
grace period and S&P continues to receive timely information from
the company.
BREITBURN ENERGY: Court Directs Appointment of Equity Committee
---------------------------------------------------------------
Judge Stuart M. Bernstein of the U.S. Bankruptcy Court for the
Southern District of New York issued an order directing the
appointment of a statutory committee of equity security holders of
Breitburn Energy Partners LP and its debtor affiliates.
Judge Bernstein, in July, issued an order directing the Debtors to
show cause why an official committee of equity security holders
should not be appointed, after receiving letters requesting the
appointment of a statutory equity security holders' committee.
Upon consideration of all pleadings requesting appointment of a
committee from holders of common and preferred units of Breitburn
Energy Partners LP, and the pleadings opposing appointment of a
committee from the Debtors and certain creditors, and, on due
notice, after an evidentiary hearing held on Oct. 11, 2016, Judge
Bernstein ordered the United States Trustee to appoint a statutory
committee of equity security holders consisting of preferred and
common unit holders in these chapter 11 cases.
The American Bankruptcy Institute, citing Jessica DiNapoli of
Reuters, reported that the public unit holders of the master
limited partnership began fighting for an official place in court
soon after the company filed a Chapter 11 petition, saying they
could end up owing taxes if the company canceled some of its
roughly $3.1 billion in debt in a reorganization.
The report pointed out that bankruptcy judges rarely approve such
committees but oil prices have rebounded to about $50 per barrel
from lows of $26 per barrel earlier this year, they have allowed
their creation in energy bankruptcy cases including Energy XXI Ltd
and Hercules Offshore Inc.
"(The) court concludes that ... equity has carried its burden that
Breitburn does not appear to be hopelessly insolvent," Reuters
cited bankruptcy Judge Stuart Bernstein of the Southern District of
New York as saying.
Judge Bernstein said the committee should focus on Breitburn's plan
of reorganization, which has not been filed, and its solvency, the
report related. The committee should also look into the potential
tax hit the equity holders face, the report further cited Judge
Bernstein as saying.
Attorneys pushing for the formation of the committee had argued
that Breitburn was able to raise $350 million in convertible
preferred units in early 2015, when oil was trading at roughly the
same level as today, a sign that the company is not now "hopelessly
insolvent," the report related.
About Breitburn Energy
Breitburn Energy Partners LP and 21 of its affiliates filed
voluntary petitions for relief under Chapter 11 of the Bankruptcy
Code (Bankr. S.D.N.Y. Lead Case No. 16-11390) on May 15, 2016,
listing assets of $4.71 billion and liabilities of $3.41 billion.
Breitburn Energy et al., are an independent oil and gas partnership
engaged in the acquisition, exploitation and development of oil and
natural gas properties, Midstream Assets, and a combination of
ethane, propane, butane and natural gasolines that when removed
from natural gas become liquid under various levels of higher
pressure and lower temperature, in the United States. The Debtors
conduct their operations through Breitburn Parent's wholly-owned
subsidiary, Breitburn Operating LP, and BOLP's general partner,
Breitburn Operating GP LLC.
The Debtors have engaged Weil Gotshal & Manges LLP as counsel,
Alvarez & Marsal North America, LLC as financial advisor, Lazard
Freres & Co. LLC as investment banker, PricewaterhouseCoopers as
auditor and tax advisor and Prime Clerk LLC as claims and noticing
agent. Curtis, Mallet-Prevost, Colt & Mosle LLP serves as their
conflicts counsel.
The cases are pending before the Honorable Stuart M. Bernstein.
The U.S. trustee for Region 2 appointed three creditors of
Breitburn Energy Partners LP and its affiliates to serve on the
official committee of unsecured creditors. The committee retained
Milbank, Tweed, Hadley & McCloy LLP as its legal counsel.
BREMAR DEVELOPMENT: U.S. Trustee Unable to Appoint Committee
------------------------------------------------------------
The Office of the U.S. Trustee on Oct. 14 disclosed in a court
filing that no official committee of unsecured creditors has been
appointed in the Chapter 11 case of Bremar Development, LLC.
Bremar Development, LLC, filed a chapter 11 petition (Bankr. S.D.
Fla. Case No. 16-21328) on Aug. 17, 2016. The petition was signed
by Jorge D. Marrero, sole managing member. The Debtor is
represented by Kristopher E. Pearson, Esq., at Stearns Weaver
Miller Weissler Alhadeff & Sitterson, P.A. The case is assigned to
Judge Laurel M. Isicoff. The Debtor estimated assets and
liabilities at $1 million to $10 million at the time of the filing.
BUCKSKIN REALTY: Court Refuses to Dismiss Clawback Suit vs. WHA
---------------------------------------------------------------
Buckskin Realty LLC brought an adversary proceeding seeking, inter
alia, to vacate a state court foreclosure judgment and sale of two
unimproved lots located in Greene County, New York, and retitle
those lots to Buckskin's bankruptcy estate.
The defendants are the Windmont Homeowners Association, Inc.; Eva
Halpern and Cathy Hennessy, officers and directors of the WHA;
Young/Sommer LLC, a law firm, and one of its attorneys, Allyson
Phillips, who represented the WHA in state court foreclosure
proceedings; and Edward Kaplan, the state court foreclosure
referee. The Defendants filed separate motions to dismiss
Buckskin's claims pursuant to Rule 12(b)(1) and (6) of the Federal
Rules of Civil Procedure, and on preclusion grounds.
In a decision dated Sept. 23, 2016, Judge Nancy Hershey Lord of the
United States Bankruptcy Court for the Eastern District of New York
dismisses all causes of action in the Amended Complaint except for
the portion of the ninth cause of action against the WHA based on
11 U.S.C. Section 547.
According to Judge Lord, the Rooker-Feldman doctrine, which
prevents federal courts, other than the Supreme Court, from
reviewing state court decisions, prevents the Bankruptcy Court from
vacating the foreclosure judgment or declaring it void on any of
the grounds raised by Buckskin. The bankruptcy judge added that
Second Circuit law is clear that a federal court, other than the
Supreme Court, may not review a state court judgment even when the
federal court litigant argues that the state court judgment is void
ab initio. The bankruptcy judge noted that although some courts
have recognized a void ab initio exception to Rooker-Feldman, this
exception is limited to situations in which the harm complained of
falls within the repository of jurisdiction arising by virtue of
the bankruptcy, such as violations of the automatic stay or
discharge injunction, but this exception is narrow, and does not
permit attacks on a state court judgment simply because a federal
plaintiff alleges that the state judgment is "void."
Judge Lord refused to dismiss Buckskin's ninth cause of action,
which seeks to avoid the WHA foreclosure judgment as a preference
under Section 547, pointing out that elements 1-4 of the required
by Section 547 are satisfied on the instant facts. The bankruptcy
judge said that while Buckskin's ninth cause of action was perhaps
inartfully pleaded, in accepting Buckskin's allegations as true and
drawing all reasonable inferences in its favor, the Court is not
prepared to dismiss the portion of the cause of action based on
Section 547 in light of the unsettled law as to whether subsection
(5) is satisfied when a secured creditor purchases collateral at a
foreclosure sale for less than its fair market value, as is in this
case.
The adversary proceeding is Buckskin Realty Inc., Plaintiff, v.
Windmont Homeowners Association, Inc., Eva Halpern, an individual,
Allyson Phillips, an individual, Edward I. Kaplan, an individual,
Young & Sommer, P.C., Cathy Hennessy, Defendants, Adv. Pro. No.
15-01004 (Bankr. E.D.N.Y.).
A full-text copy of Judge Lord's Decision is available at
https://is.gd/sKXSSg from Leagle.com.
Buckskin Realty Inc, Plaintiff, represented by Frederick Cains.
Windmont Homeowners Association, Inc., Defendant, represented by
Greg D. Lubow & Barry G. Margolis, Esq. -- bmargolis@agmblaw.com --
Abrams Garfinkel Margolis Bergson LLP.
Allyson Phillips, Defendant, represented by Peter T. Shapiro, Lewis
Brisbois Bisgaard & Smith LLP
Edward I. Kaplan, Defendant, represented by Jonathan B. Bruno, Esq.
-- Jonathan.bruno@rivkin.com -- Rivkin Radler LLP & Deborah M.
Isaacson, Esq. -- deborah.isaacson@rivkin.com -- Rivkin Radler
LLP.
Buckskin Realty LLC filed a Chapter 11 petition (Bankr. E.D.N.Y.
Case No. 13-40083) on Jan. 8, 2013, and is represented by Frank
Castiglione, Esq., at Palmieri and Castiglione, P.C.
CAESARS ENTERTAINMENT: Extends Deadline to Finalize Amended Plan
----------------------------------------------------------------
Caesars Entertainment Corporation ("Caesars Entertainment") and
Caesars Entertainment Operating Company, Inc. ("CEOC") and its
Chapter 11 debtor subsidiaries (collectively, the "Debtors") on
Oct. 14, 2016, disclosed that the applicable parties have extended
the deadline to finalize certain additional documentation in
connection with the Debtors' Third Amended Joint Plan
Reorganization until 11:59 p.m. ET on Wednesday, Oct. 19. The
extension will allow the participants additional time to resolve
the remaining open items in pursuit of an agreement.
About Caesars Entertainment
Caesars Entertainment Corp., formerly Harrah's Entertainment Inc.,
is one of the world's largest casino companies. Caesars casino
resorts operate under the Caesars, Bally's, Flamingo, Grand
Casinos, Hilton and Paris brand names. The Company has its
corporate headquarters in Las Vegas. Harrah's announced its
re-branding to Caesar's in mid-November 2010.
In January 2015, Caesars Entertainment and subsidiary Caesars
Entertainment Operating Company, Inc., announced that holders of
more than 60% of claims in respect of CEOC's 11.25% senior secured
notes due 2017, CEOC's 8.5% senior secured notes due 2020 and
CEOC's 9% senior secured notes due 2020 have signed the Amended and
Restated Restructuring Support and Forbearance Agreement, dated as
of Dec. 31, 2014, among Caesars Entertainment, CEOC and the
Consenting Creditors. As a result, The RSA became effective
pursuant to its terms as of Jan. 9, 2015.
Appaloosa Investment Limited, et al., owed $41 million on account
of 10% second lien notes in the company, filed an involuntary
Chapter 11 bankruptcy petition against CEOC (Bankr. D. Del. Case
No. 15-10047) on Jan. 12, 2015. The bondholders are represented
by Robert S. Brady, Esq., at Young, Conaway, Stargatt & Taylor
LLP.
CEOC and 172 other affiliates -- operators of 38 gaming and resort
properties in 14 U.S. states and 5 countries -- filed Chapter 11
bankruptcy petitions (Bank. N.D. Ill. Lead Case No. 15-01145) on
Jan. 15, 2015. CEOC disclosed total assets of $12.3 billion and
total debt of $19.8 billion as of Sept. 30, 2014.
Delaware Bankruptcy Judge Kevin Gross entered a ruling that the
bankruptcy proceedings will proceed in the U.S. Bankruptcy Court
for the Northern District of Illinois.
Kirkland & Ellis serves as the Debtors' counsel. AlixPartners is
the Debtors' restructuring advisors. Prime Clerk LLC acts as the
Debtors' notice and claims agent. Judge Benjamin Goldgar presides
over the cases.
The U.S. Trustee has appointed seven noteholders to serve in the
Official Committee of Second Priority Noteholders and nine members
to serve in the Official Unsecured Creditors' Committee.
The U.S. Trustee appointed Richard S. Davis as Chapter 11
examiner.
* * *
The U.S. Bankruptcy Court for the Northern District of Illinois
approved the adequacy of the disclosure statement explaining the
second amended joint Chapter 11 plan of reorganization of Caesars
Entertainment Operating Company Inc. and its debtor-affiliates.
The Court set Oct. 31, 2016, at 4:00 p.m. (prevailing Central Time)
as last day for any holder of a claim entitle to vote to accept or
reject the Debtors' plan.
A hearing is set for Jan. 17, 2017, at 10:30 a.m. (prevailing
Central Time) in Courtroom No. 642 in the Everett McKinley Dirksen
United States Courthouse, 219 South Dearborn Street, Chicago,
Illinois, to confirm the Debtors' plan. Objections to
confirmation, if any, are due Oct. 31, 2016, at 4:00 p.m.
(prevailing Central Time).
CARAVAN II LLC: Wants Plan Filing Deadline Moved to January 2017
----------------------------------------------------------------
Caravan II LLC requests the U.S. Bankruptcy Court for the Western
District of Pennsylvania to extend the deadline for filing its Plan
and Disclosure Statement until January 15, 2017.
Pursuant to a text Order dated May 10, 2016, the Debtor's Chapter
11 Small Business Plan and Disclosure Statement was due October 17,
2016.
According to the Debtor, it is still evaluating its options and
considering pursuing settlement and/or objecting to the claims of
its primary creditors, which would significantly affect the overall
direction of the case. As such, the Debtor requests a 90-day
extension to file its plan and disclosure statement.
Counsel for Caravan II LLC:
Robert O Lampl, Esq.
John P. Lacher, Esq.
David L. Fuchs, Esq.
Ryan J. Cooney, Esq.
Penn Avenue, Suite 1200
Pittsburgh, PA 15222
Telephone: (412) 392-0330
Facsimile (412) 392-0335
Email: rlampl@lampllaw.com
About Caravan II LLC
Caravan II LLC filed a Chapter 11 petition (Bankr. W.D. Pa. Case
No. 16-21471), on April 18, 2016, disclosing an estimated assets of
less than $50,000 and estimated liabilities ranging from $100,000
to $500,000. The Petition was signed by one of the Company's
member, Linda J. Menichino. The Debtor counsel is represented by
Robert 0 Lampl, Esq. at Robert 0 Lampl, Attorney at Law, 960 Penn
Avenue, Suite 1200, Pittsburgh, PA.
CATARINA CONSTRUCTION: Case Summary & 20 Top Unsecured Creditors
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Debtor: Catarina Construction, LLC
P.O. Box 5564
Austin, TX 78763
Tel: (830) 322-8888
Case No.: 16-11209
Chapter 11 Petition Date: October 17, 2016
Court: United States Bankruptcy Court
Western District of Texas (Austin)
Judge: Hon. Christopher H. Mott
Debtor's Counsel: Kell C. Mercer, Esq.
KELL C. MERCER, PC
1602 E Cesar Chavez St
Austin, TX 78702
Tel: (512) 627-3512
Fax: (512) 597-0767
E-mail: kell.mercer@mercer-law-pc.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Erik White, chief restructuring
officer.
A copy of the Debtor's list of 20 unsecured creditors is available
for free at http://bankrupt.com/misc/txwb16-11209.pdf
CF INDUSTRIES: S&P Lowers CCR to 'BB+', Outlook Negative
--------------------------------------------------------
S&P Global Ratings said that it lowered its corporate credit rating
and issue-level ratings on CF Industries Inc. to 'BB+' from 'BBB-'.
The outlook is negative. At the same time, S&P assigned recovery
ratings to the company's unsecured debt of '3', indicating S&P's
expectation for meaningful recovery (lower end of the 50%-70%
range) in the event of a default.
"The lower ratings reflect our view that ongoing depressed pricing
in the nitrogen fertilizer sector will weaken credit metrics to
levels that are not appropriate at the previous ratings. Pricing
in the second half of 2016 has been weaker than our previous
assumptions. We do not anticipate any meaningful pricing recovery
in 2017, though seasonal variations could result in temporary
improvement. Our current view is that lower prices will cause
credit metrics to be appropriate at the reassessed financial risk
profile of significant. We anticipate that the ratio of funds from
operations to total debt will be 20% or higher on a five-year
weighted average basis (including two years of historical numbers).
We believe that the ratio will be meaningfully lower than 20% at
year-end 2016, improving in 2017 in part from additional capacity
at CF. Our previous expectations were for this ratio to be 30% or
higher on a weighted-average basis. Our current view is that
pricing will recover in 2018, though CF is unlikely to return to
the high adjusted EBITDA levels achieved in 2014 of over $2 billion
or the nearly $1.9 billion in 2015. Our anticipation is that some
volume increases in 2017 will result in adjusted EBITDA slightly
below $1.5 billion, with further improvement in 2018 as pricing
improves," S&P said.
"The company's strength as the largest domestic nitrogen fertilizer
producer continues to contribute to our assessment of the business
risk profile as satisfactory. We do not believe that the company's
business risk profile has changed despite ongoing pressure on
pricing, as key long-term demand fundamentals and the North
American low-cost advantage remain key business strengths. We
continue to view the company at the lower end of the satisfactory
assessment relative to peers, a view that contributes to the
downgrade because we pick the lower end of the 'BBB'/'BB+' outcome
that the company's business risk profile and financial risk profile
map to. Our assessment of the business risk profile incorporates
volatility in pricing and demand that we view as characteristic of
the sector. Our view remains that CF will benefit from
competitively priced domestic natural gas, which has already
improved the cost position of U.S.-based nitrogen fertilizer
producers relative to imports. We view capacity expansions in 2016
at two existing facilities will likely allow CF to take market
share from nitrogen imports. We anticipate steady North American
fertilizer demand in 2017 but see low prices hurting profitability
through most of the year. Key risks include the company's narrow
focus on a commodity fertilizer; geographic concentration in U.S.
and Canadian markets, a risk given our outlook on the sector for
2016 and 2017; and asset concentration with a large portion of
production from a single location, in Donaldsonville, La," S&P
noted.
S&P has lowered its assessment of financial risk to significant
from intermediate because of S&P's diminished expectations for
credit metrics. S&P assumes the company will be committed to
maintain credit quality and do not anticipate the company will
pursue future shareholder rewards, growth plans, or acquisitions
such that they increase leverage levels beyond S&P's range of
expectations.
S&P assesses CF's liquidity to be strong, with sources to exceed
uses by more than 1.5x. Liquidity sources minus uses should remain
positive even if EBITDA is 30% less than S&P projects. S&P's
assessment anticipates that CF will remain proactive in amending
covenants in the light of a weaker than anticipated operating
environment, so that it has ongoing access to its credit facilities
and debt. In the third quarter of 2016, the company negotiated an
amendment to covenants on its debt.
Principal liquidity sources:
-- Cash on hand of about $2 billion as of June 30, 2016.
-- Substantial availability under the revolving credit
facility.
-- Cash funds from operations averaging approximately
$1 billion annually for the next two years.
Principal liquidity uses:
-- Scaled down capital expenditures of less than $500 million
in the next year, at a minimum. Capex in previous years
were at elevated levels above $2 billion as a result of the
company's large expansion plans.
-- Seasonal working capital requirements of around
$750 million.
-- Dividends, including distributions to non-controlling
interests, of about $400 million per year.
The negative outlook reflects S&P's expectation that CF Industries
Inc.'s credit measures will be strained for the ratings over at
least the next 12 months. S&P do not believe the company will
pursue future shareholder rewards, growth plans, or acquisitions
such that they increase leverage levels beyond S&P's range of
expectations, with the exception of a temporary dip during periods
of peak capital spending. Specifically, S&P expects credit
measures to be weak for the ratings during 2016 when S&P observes
the impact of cash deployed for expansions without the incremental
EBITDA from these projects, and again in 2017 when new capacity
additions will contribute to keeping prices low. S&P expects that
capital spending will be reduced in 2017, following several years
of elevated growth capex.
S&P could lower the ratings over the next 12 months if operating
performance weakens unexpectedly or debt rises such that the
weighted average ratio of adjusted debt/EBITDA is consistently
above 4x, and an FFO to total debt of below 20% with no prospect
for improvement. S&P anticipates the ratio of funds from
operations to total debt will be above 20% on a weighted-average
basis but believe this ratio will be below 20% in 2016, approach
20% in 2017, and exceed 20% in 2018, and strengthen beyond 2018. A
weakening of these ratios to ledeterioration, including a sharp
decline in revenues or a sustained decrease in EBITDA mvels below
expectations could happen through several combinations of revenue
and margin argins by a few percentage points each year relative to
S&P's expectations. S&P believes that the sector remains
susceptible to unexpected event risks. If management, against
S&P's expectation, stretches the financial profile to pursue
additional growth objectives or shareholder rewards, any operating
setback could be exacerbated and contribute to a potential
weakening of metrics, which could result in a downgrade. S&P could
also lower ratings if there are major operational risks that arise
from bringing on new expanded capacity at the company's existing
plants.
S&P could revise the outlook to stable over the next 12 months if
earnings and cash flow prospects improve markedly in 2017 relative
to S&P's expectations, so that it believes the company's FFO/TD
ratio could exceed 20% at year-end 2017. An improvement in EBITDA
margins could result in stronger-than-anticipated credit measures.
CLOUD PEAK: S&P Raises CCR to 'B-', Outlook Negative
----------------------------------------------------
S&P Global Ratings said it raised its corporate credit rating on
Gillette, Wyo.-based Cloud Peak Energy Resources LLC to 'B-' from
'SD'. The outlook is negative
At the same time, S&P raised the issue-level rating on Cloud Peak's
$300 million senior unsecured notes due 2019 and its $200 million
senior unsecured notes due 2024 to 'CCC' from 'D' with recovery
rating unchanged at '6', reflecting S&P's expectation of negligible
(0% to 10%) recovery in the event of a conventional default.
S&P's 'B-' issue-level rating on the company's $290 million
second-lien notes due 2021 is unchanged with a '3' recovery rating,
reflecting S&P's expectation of meaningful (50% to 70%, lower half
of the range) recovery in the event of a conventional default..
"The negative outlook reflects the weak operating performance and
the uncertainty of the company's ability to generate positive
operating cash flow in the next 12 months," said S&P Global Ratings
credit analyst Vania Dimova. "We do not rule out the possibility
of further decline in cash flows if the domestic demand continues
to deteriorate due to continued volume rationalization and
increased competition from stronger players emerging from
bankruptcy."
S&P could lower the rating if the company's liquidity position
becomes less than adequate (including breaching its minimum
liquidity covenant) or leverage increases above 8x. This could
happen if adjusted EBITDA drops below $75 million in 2017.
S&P considers an upgrade unlikely at this time, given lower
production guidance coupled with weak thermal coal market
conditions for the next 12 months. However, S&P could consider an
upgrade if the company increases its operating diversity while
consistently maintaining debt to EBITDA of less than 5x and FFO to
total debt above 20%.
DEER MEADOWS: Has Access to Cash Collateral Until Oct. 31
---------------------------------------------------------
Judge Peter C. McKittrick entered a first interim order authorizing
Deer Meadows, LLC, to use cash collateral through Oct. 31, 2016.
The Debtor has claimed that without the use of the cash collateral,
the Debtor has insufficient funds to meet its expenses and other
payments. The Debtor has prepared a budget that sets forth the
Debtor's projected use of the cash collateral for the period from
Oct. 1, 2016 through Jan. 31, 2016.
Based on the Motion, the statements and representations of counsel
for Debtor and DCR Mortgage VI, Sub IV, LLC, the statements of the
United States Trustee made at the Oct. 5 hearing, the Court entered
an interim order that provides:
1. The Debtor is authorized on an interim basis to use Cash
Collateral through Oct. 31, 2016. During that interim period, the
Debtor is authorized to use Cash Collateral not to exceed $85,000
in the aggregate for the purposes specified in the Budget.
2. The Debtor's authority to use Cash Collateral is limited to
the amounts and uses of the Cash Collateral set forth in the
Budget; subject to an aggregate budget variance per line item
exceeding 10% of the total projected expenditures. The Debtor's
authority to use the Cash Collateral may be extended beyond the
$85,000 amount in or the Budget Period by agreement of the Debtor,
DCR Mortgage, the United States Trustee and any Creditors Committee
that may be appointed in the case. In the event of such agreement,
the Debtor may submit a further order allowing the use of Cash
Collateral without additional motion or hearing.
3. The Debtor's authority to use Cash Collateral will terminate
upon the occurrence of any of the following events, in each case,
subject to DCR Mortgage's right to waive or modify the Termination
Event:
(a) The expiration of the Budget Period;
(b) This Chapter 11 case is either dismissed or converted to
a case under Chapter 7 of the Bankruptcy Code;
(c) A trustee is appointed in this Chapter 11 case; or
(d) The Debtor defaults in any material respect in the
performance of or compliance with any term or provision in the
Order and in each case such default is not remedied within 5
business days after DCR Mortgage gives the Debtor written notice of
such default.
4. As adequate protection to DCR Mortgage for the Debtor's use
of Cash Collateral, DCR Mortgage is granted the following:
(a) DCR Mortgage is granted a replacement lien on property of
the Debtor of the same nature, kind and priority as secured
Debtor's debt to DCR Mortgage on the Petition Date, specifically
including all rents and income of the Deer Meadows Facility and all
products, proceeds, issues, or profits that were either subject to
DCR Mortgage's prepetition liens or acquired as a result of the
Debtor's use and/or expenditure of cash collateral; provided,
however, that such replacement lien will not attach to avoidance or
recovery actions of the Debtor's estate under Chapter 5 of the
Code.
(b) DCR Mortgage's lien in the Replacement Collateral will
have the same relative priority as the liens it held on the
Petition Date.
(c) The Debtor will timely perform and complete all actions
necessary and appropriate to protect the Cash Collateral against
diminution in value.
(d) DCR Mortgage's lien in the Replacement Collateral will be
in addition to all other security interests securing DCR Mortgage's
allowed secured claim in existence on the Petition Date. In
addition, nothing in the Order will abridge or limit DCR
Mortgage's security interest in proceeds, products, or profits to
the extent provided under Section 552 of the Code.
(e) DCR Mortgage's lien in the Replacement Collateral will be
senior to the rights of Debtor and any successor trustee or estate
representative in this case or any subsequent cases or proceedings
under the Code except as otherwise provided by Court order.
(f) DCR Mortgage's lien in the Replacement Collateral will be
perfected and enforceable by operation of law upon entry of this
Order without regard to whether such lien is perfected under
applicable non-bankruptcy law.
(g) As additional adequate protection, Debtor will make
adequate protection payments to DCR Mortgage in the amount of
$11,581 per month, with the first payment to be made on or before
Oct. 31, 2016 and succeeding monthly payments to be made on or
before the last day of each month.
(h) The Debtor will at all times keep DCR Mortgage's
prepetition collateral and the Replacement Collateral free and
clear of all other liens, encumbrances and security interests,
other than those in existence on the Petition Date or granted by
Court order.
(i) The Debtor will provide to DCR Mortgage, on or before the
21st day of each month (or, if such day falls on a day other than a
business day then on the next business day), beginning on Nov. 21,
2016, a Budget Reconciliation form, in form reasonably satisfactory
to DCR Mortgage and certified by the Debtor's manager to be
accurate to the best of her knowledge, information and belief, that
compares the Debtor's actual cash receipts and disbursements to the
Budget for the calendar month immediately preceding the month in
which the report is due.
(j) The Debtor will at all times cause to be maintained
policies of insurance with respect to the Deer Meadows Facility as
were in effect on the Petition Date and as required by the United
States Trustee.
(k) The Debtor will at all times reasonably manage and
preserve the Deer Meadows Facility and Debtor's other assets.
A final hearing on Debtor's motion to use cash collateral will be
held on Oct. 31, 2016 at 11:00 a.m. in Courtroom 1.
A copy of the Interim Order is available at:
http://bankrupt.com/misc/orb16-33768_32_Cash_Ord_Meadows.pdf
About Deer Meadows
Deer Meadows, LLC's primary asset is an assisted living facility
located in Sheridan, Oregon. DCR Mortgage and/or its affiliates,
has a lien covering the Property.
Deer Meadows filed a chapter 11 petition (Bankr. D. Ore. Case No.
16-33768) on Sept. 30, 2016. The petition was signed by Kristin
Harder, manager. The case is assigned to Judge Peter C.
McKittrick. The Debtor estimated assets and liabilities at $1
million to $10 million at the time of the filing.
The Debtor is represented by Stephen T. Boyke, Esq., at the Law
Office of Stephen T. Boyke.
DENIS LEE ABRAMOWITZ: 5th Amended Plan, Disclosures Due on Oct. 28
------------------------------------------------------------------
Denis Lee Abramowitz must file by Oct. 28, 2016, a fifth amended
plan of reorganization and fifth amended disclosure statement.
The hearing on the Albanese Fee Application and on the fifth
amended disclosure statement is adjourned to Nov. 16, 2016, at 2:00
p.m.
Barbara Abramowitz filed for Chapter 11 bankruptcy protection
(Bankr. E.D.N.Y. Case No. 12-44846) on June 29, 2012.
DENMARK MANAGEMENT: Asks for Cash Access Until December
-------------------------------------------------------
Denmark Management Company filed a motion asking the U.S.
Bankruptcy Court for the Eastern District of Michigan for approval
to use cash collateral.
The Debtor, which owns mobile home parks, says the majority of its
value arises from its ongoing operations and its ability to
continue collecting lot rent. Without authority to use cash
collateral, the Debtor believes it will suffer irreparable harm
because it will be forced to immediately shut down and force
low-income families out of their homes.
During the first 60 days of the case, the Debtor projects that it
will need to spend $321,400 to avoid immediate and irreparable
harm.
On the Petition Date, the Debtor, without admission, believes that
the cash collateral, as defined in 11 U.S.C. Sec. 363, consists of
cash and accounts receivable. At this time, the Debtor is unable
to provide the value of the cash collateral, because the
documentation and information is believed to be in the possession
of the state court receiver. The Debtor believes that all parties
will be advised of the value of the cash collateral when the
receiver provides an accounting to the Court pursuant to 11 U.S.C.
Sec. 543.
Before the Petition Date, the Debtor entered into a loan with Park
Capital Investments, LLC, and related security instruments. The
Debtor anticipates that PCI will assert a security interest in the
Debtor's cash collateral.
The Debtor requires the use of cash collateral to make payments as
are necessary for the continuation of its business as shown in its
proposed budget. The budget forecasts income from leases of
$170,000 per month and total expenses of $160,700 per month for
October to December.
As adequate protection under Sec. 363 and 361 of the Bankruptcy
Code, the Debtor will provide PCI replacement liens in the Debtor's
personal property and the proceeds and products thereof. As
additional adequate protection, the Debtor will pay all personal
property taxes, real property taxes, maintenance expenses and wages
in connection with preserving the property.
As part of its request to use cash collateral, the Debtor is
requesting that the Court allow it to escrow, on a monthly basis,
$5,000 into the client trust account of its proposed counsel to pay
the professional fees of legal counsel employed by the Debtor in
connection with the bankruptcy proceeding to the extent the fees
are allowed by the Court.
A copy of the Motion, along with the Budget, is available at:
http://bankrupt.com/misc/mieb16-53194_31_Cash_M_Denmark.pdf
About the Debtor
Denmark Management Company provides maintenance and support
services to many mobile home communities throughout Michigan and
Indiana. Such services include, without limitation, full
bookkeeping and accounting, staffing, rent collections, oversight
of equipment and vehicles and all maintenance and construction at
the various communities.
Denmark Management Company filed a Chapter 11 petition (Bankr. E.D.
Mich. Case No. 16-53194) on Sept. 25, 2016. The case judge is the
Hon. Thomas J. Tucker. The petition was signed by Mark D. Krueger,
shareholder.
The Debtor estimated $0 to $50,000 in assets and $10 million to $50
million in liabilities.
Related entities PC Acquisition LLC, Battle Creek Realty, LLC,
Denmark Management Company and St. John/Battle Creek Owner, LLC,
simultaneously sought Chapter 11 protection.
The Debtors tapped Ernest Hassan, Esq., at Stevenson & Bullock,
P.L.C., in Southfield, Michigan as counsel.
No trustee or examiner has been appointed in the cases and no
committee has been appointed or designated.
DOUBLE VISION: Taps BHHS Great Expectations as Realtor
------------------------------------------------------
Double Vision Inc. seeks approval from the U.S. Bankruptcy Court
for the Southern District of West Virginia to hire a realtor.
The Debtor proposes to hire BHHS Great Expectations Realty to
market its real property located at 238 Capitol Street, Charleston,
West Virginia.
The firm will receive a 5% commission for its services.
BHHS is "disinterested" as defined in section 101(14) of the
Bankruptcy Code, according to court filings.
The firm can be reached through:
Duke Jordan
BHHS Great Expectations Realty
1337 Virginia Street East
Charleston, WV 25301
Tel: (304) 415-0607
About Double Vision Inc.
Double Vision Inc. sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. S. D. W.V. Case No. 16-20560) on October 4,
2016. The petition was signed by Ted Brightwell, president.
At the time of the filing, the Debtor estimated assets of less than
$50,000 and liabilities of less than $50,000.
The Debtor is represented by:
Andrew S. Nason, Esq.
Pepper & Nason
8 Hale Street
Charleston, WV 25301
Tel: (304) 346-0361
Email: andyn@peppernason.com
DYNEGY INC: Unveils Key Terms of Genco Support Agreement
--------------------------------------------------------
Dynegy Inc. has entered into a restructuring support agreement
(RSA) with Illinois Power Generating Company (Genco) and an ad hoc
group (Ad Hoc Group) of Genco bondholders to restructure $825
million in unsecured debt at Genco.
Key terms of the support agreement, filed separately in an 8-K,
include:
* $825 million in existing 2018, 2020 and 2032 Genco notes to be
exchanged for:
-- $210 million in new 7-year Dynegy Inc. unsecured notes with
terms and covenants consistent with existing Dynegy Inc. unsecured
bonds due 2023
-- $139 million cash consideration, including a $9 million RSA
payment discussed below, funded with existing Illinois Power
Holdings cash balances and collateral synergies
-- 10 million Dynegy Inc. warrants with a 7-year tenor and
strike price of $35 per share
* Simultaneous solicitation of Genco noteholders to effectuate
either an out of court restructuring or a prepackaged chapter 11
filing for Genco
* Genco to continue making interest payments on the existing
Genco notes, with interest payments after September 30, 2016 netted
against the proposed cash consideration
Dynegy, Genco and the Ad Hoc Group have agreed that holders of the
Genco notes who enter into the RSA on or before October 21, 2016,
will be paid their pro rata share of $9 million in cash upon
consummation of a transaction, with such pro rata share determined
as the proportion that the amount of Genco notes held by each such
holder bears to the aggregate amount of Genco notes held by all
holders entitled to receive a share of the $9 million.
If holders of 97% or more of the aggregate principal amount of
Genco notes participate in the exchange offers and the other
conditions thereto are satisfied, Dynegy intends to consummate the
restructuring out of court. If holders of less than 97% of the
aggregate principal amount of Genco notes, but a majority in number
of the holders who have voted on the restructuring plan and who
hold at least 66.7% in the aggregate amount of Genco notes vote to
accept the plan, the parties to the RSA intend to consummate the
restructuring through a prepackaged chapter 11 filing of Genco in
the US Bankruptcy Court for the Southern District of Texas, Houston
Division.
Dynegy is represented with respect to the Genco notes restructuring
by White & Case LLP as counsel and Lazard Freres & Co. LLC as
financial advisor and the Ad Hoc Group is represented by Willkie
Farr & Gallagher LLP as counsel and Houlihan Lokey Capital, Inc. as
financial advisor.
About Dynegy
Through its subsidiaries, Houston, Texas-based Dynegy Inc. (NYSE:
DYN) -- http://www.dynegy.com/-- produces and sells electric
energy, capacity and ancillary services in key U.S. markets. The
power generation portfolio consists of approximately 12,200
megawatts of baseload, intermediate and peaking power plants fueled
by a mix of natural gas, coal and fuel oil.
Dynegy Holdings LLC and four other affiliates of Dynegy Inc. sought
Chapter 11 bankruptcy protection (Bankr. S.D.N.Y. Lead Case No.
11-38111) on Nov. 7, 2011, to implement an agreement with a group
of investors holding more than $1.4 billion of senior notes issued
by Dynegy's direct wholly-owned subsidiary, Dynegy Holdings,
regarding a framework for the consensual restructuring of more than
$4.0 billion of obligations owed by DH. If this restructuring
support agreement is successfully implemented, it will
significantly reduce the amount of debt on the Company's
consolidated balance sheet. Dynegy Holdings disclosed assets of
$13.77 billion and debt of $6.18 billion.
Dynegy Inc. on July 6, 2012, filed a voluntary petition to
reorganize under Chapter 11 (Bankr. S.D.N.Y. Case No. 12-36728) to
effectuate a merger with Dynegy Holdings, pursuant to Holdings'
Chapter 11 plan.
Dynegy Holdings and its parent, Dynegy Inc., completed their
Chapter 11 reorganization and emerged from bankruptcy Oct. 1, 2012.
Under the terms of the DH/Dynegy Plan, DH merged with and into
Dynegy, with Dynegy, Inc., remaining as the surviving entity.
Dynegy Northeast Generation, Inc., Hudson Power, L.L.C., Dynegy
Danskammer, L.L.C. and Dynegy Roseton, L.L.C., won confirmation of
their plan of liquidation in March 2013, allowing the former
operating units of Dynegy to consummate a settlement agreement
resolving some lease trustee claims and sell their facilities.
* * *
The Troubled Company Reporter, on June 20, 2016, reported that S&P
Global Ratings affirmed its 'B+' corporate credit rating on Dynegy
Inc. The outlook is stable.
Additionally, S&P is assigning a 'BB' rating and '1' recovery
rating to the proposed senior secured term loan B. The '1'
recovery rating indicates expectations for very high (90%-100%)
recovery in the event of a payment default.
EMERALD OIL: Wants Plan Filing Period Moved Thru February 2017
--------------------------------------------------------------
Emerald Oil, Inc. and its debtor affiliates ask the U.S. Bankruptcy
Court for the District of Delaware to extend the periods during
which the Debtors have the exclusive right to (a) file a chapter 11
plan, through and including February 17, 2017, and (b) solicit
votes accepting or rejecting a plan, through and including April
18, 2017 .
According to the Debtors, their main focus since the beginning of
these chapter 11 cases has been to consummate a sale of
substantially all of their assets, and the Debtors have only
recently selected a successful bid for their assets, which is
subject to Bankruptcy Court approval and closing, and have since
worked with various parties to resolve cure amounts and objections
to the sale.
The Debtors tell the Court that the sale process was delayed as
they were forced to spend considerable time and effort navigating
economic and legal issues raised in several contested matters with
the Debtors' midstream counterparty -- Dakota Midstream, LLC and
its affiliates -- with respect to certain gathering agreements
between the Debtors and Dakota, where the finality of these
proceedings was considered by the parties to be crucial component
to the sale process.
Recently, however, the Debtors also have resolved in principle with
Dakota their adversary proceeding and related motions, and are
working to document that resolution within the sale and plan
process as they are working continuously with their lenders, the
Committee, Dakota, and other stakeholders, together with their
advisors, to negotiate and outline the material terms and timeline
of both the going-concern sale and a subsequent liquidating chapter
11 plan.
About Emerald Oil
Emerald is a Denver-based independent exploration and production
company that is focused on acquiring acreage and developing wells
in the Williston Basin of North Dakota.
Emerald Oil, Inc., Emerald DB, LLC, Emerald NWB, LLC, Emerald WB
LLC and EOX Marketing, LLC filed separate Chapter 11 bankruptcy
petitions (Bankr. D. Del. Case Nos. 16-10704 to 16-10708) on March
22, 2016. Ryan Smith signed the petitions as chief financial
officer.
The Debtors have hired Kirkland & Ellis LLP and Kirkland & Ellis
International LLP as general bankruptcy counsel, Pachulski Stang
Ziehl & Jones LLP as local counsel, Intrepid Financial Partners,
LLC as investment banker, Opportune LLP as restructuring advisor
and Donlin Recano & Company, Inc., as claims and noticing agent.
Judge Kevin Gross has been assigned the cases.
Andrew Vara, acting U.S. trustee for Region 3, appointed seven
creditors of Emerald Oil, Inc., to serve on the official committee
of unsecured creditors. The Committee retains Whiteford, Taylor &
Preston LLC as Delaware counsel, and Akin Gump Strauss Hauer & Feld
LLP as co-counsel.
EMMAUS LIFE: KPM Tech Reports 11.4% Stake as of Sept. 29
--------------------------------------------------------
In a Schedule 13D filed with the Securities and Exchange
Commission, KPM Tech Co. Ltd. disclosed that as of Sept. 29, 2016,
it beneficially owns 3,777,778 shares of common stock of Emmaus
Life Sciences, Inc., representing 11.4 percent of the shares
outstanding. Hanil Vacuum Co., Ltd. also reported beneficial
ownership of 666,667 common shares.
On Sept. 12, 2016, Emmaus Life entered into a letter agreement with
the Reporting Persons, which are affiliated companies controlled by
COS. In the letter agreement, the parties agreed, among other
things, that KPM and Hanil would purchase U.S.$17 million and
U.S.$3 million, respectively, of shares of Common Stock at a price
of $4.50 per share and that the Company would invest U.S. $13
million and U.S.$1 million, respectively, in future capital
increases by KPM and Hanil. The letter agreement contemplates that
KPM and Hanil may purchase additional shares of Common Stock from
the Issuer in a second transaction to be mutually agreed upon by
the parties.
In connection with the letter agreement, the Reporting Persons
entered into the Issuer's standard-form subscription agreement with
respect to their purchases which contains customary representations
and warranties of the parties.
On Sept. 29, 2016, KPM and Hanil purchased and acquired from the
Issuer 3,777,778 shares and 666,667 shares, respectively, of Common
Stock, at a price of $4.50 a share.
A full-text copy of the regulatory filing is available at:
https://is.gd/41Ddn9
About Emmaus Life
Emmaus Life Sciences, Inc., is engaged in the discovery,
development, and commercialization of treatments and therapies
primarily for rare and orphan diseases. This biopharmaceutical
company's headquarters is in Torrance, California.
Emmaus Life reported a net loss of $12.7 million on $590,114 of
net revenues for the year ended Dec. 31, 2015, compared to a net
loss of $21.8 million on $500,679 of net revenues for the year
ended Dec. 31, 2014.
As of June 30, 2016, Emmaus Life had $1.26 million in total assets,
$32.9 million in total liabilities and a total stockholders'
deficit of $31.7 million.
SingerLewak LLP, in Los Angeles, California, issued a "going
concern" qualification on the consolidated financial statements for
the year ended Dec. 31, 2015, citing that the Company has suffered
recurring losses from operations, its total liabilities exceed its
total assets and it has an accumulated stockholders' deficit. This
raises substantial doubt about the Company's ability to continue as
a going concern.
ENTERCOM COMMUNICATIONS: Moody's Affirms B1 CFR; Outlook Stable
---------------------------------------------------------------
Moody's Investors Service affirmed Entercom Communications Corp.'s
B1 corporate family rating and assigned a B1 rating to the proposed
$520 million 1st lien credit facility at its subsidiary which
includes a $60 million revolver and a $460 million term loan B.
The probability of default rating was downgraded to B2-PD from
B1-PD. The outlook is stable.
The proposed transaction is expected to lead to substantial
interest expense savings, increase the revolving credit facility to
$60 million from $40 million, and extend the maturity of its debt
structure. The Ba2 rating for the existing 1st lien credit
facility and B3 rating on the outstanding senior note will be
withdrawn upon repayment. The probability of default rating was
downgraded due to the change from a 1st lien and unsecured debt
structure to a 1st lien only structure.
Issuer: Entercom Communications Corp.
Corporate Family Rating affirmed at B1
Probability of Default Rating downgraded to B2-PD from B1-PD
Speculative Grade Liquidity Rating affirmed at SGL-2
Outlook is Stable
Entercom Radio, LLC
$60 million 5 year revolving credit facility assigned a B1,
LGD3 rating
$460 million 7 year 1st lien term loan B assigned a B1, LGD3
Rating
RATINGS RATIONALE
Entercom's B1 CFR reflects its pro-forma debt to EBITDA ratio of
4.5x as of June 30, 2016, (including Moody's standard adjustments)
which has improved meaningfully from 6.3x since Moody's assigned
ratings to the existing debt in November 2011. Ratings are
supported by organic revenue growth, improved audience ratings,
effective sales execution, large market presence, and geographic
diversity enhanced by the Lincoln Financial Media acquisition in
July 2015. Ratings incorporate the secular pressures in the radio
industry with an increasing number of digital music offerings and
advertising alternatives as well as the cyclicality of radio
advertising demand. Moody's projects Entercom will generate free
cash flow of over $60 million which we expect will be used for
acquisitions, debt repayment, redemption of preferred stock, or
returned to shareholders. Excluding stand-alone FM stations in Los
Angeles and Atlanta, revenue and EBITDA margins are supported by
the company's well-clustered radio station portfolio focused on top
50 markets. Moody's expects the company to continue to grow its
digital revenues, including Smart Reach Digital which provides
digital marketing services to local businesses, and its event
business. Prior to the recession, Entercom funded significant
share repurchases and dividends, but since 2008 the company has
consistently reduced leverage largely through debt reduction
including $21.75 million in the first half of 2016. In May 2016,
the company announced a quarterly dividend program with roughly $12
million of annual payments.
The stable outlook reflects Moody's view that the company will
benefit from good overall audience ratings and political ad revenue
in the second half of 2016. Moody's projects relatively flat
organic revenue performance in 2017 with good free cash flow.
Moody's expects Entercom's liquidity will be good as reflected in
Moody's speculative grade liquidity rating of SLG-2. Liquidity is
projected to be supported by a new $60 million, five year revolving
credit facility which is expected to have $13 million drawn at
closing and a free cash flow to debt ratio of over 10%. Liquidity
may be negatively impacted by the potential for the company to
redeem its preferred stock issued to Lincoln Financial Group,
additional acquisitions, or an increase in quarterly dividends
going forward. The proposed revolver and term loan B are expected
to be subject to a maximum total leverage ratio of 5x with a step
down going forward. The revolver is also projected to be subject
to an interest coverage covenant of 2x, but not the term loan B.
Ratings could be upgraded if debt-to-EBITDA is sustained
comfortably below 3.5x (including Moody's standard adjustments)
with good liquidity including low double digit percentage free cash
flow-to-debt and positive organic revenue growth with stable EBITDA
margins. Moody's would also need to have assurances from
management that financial policies including dividend payouts and
share repurchases would be at acceptable levels consistent with the
higher rating.
Ratings could be downgraded if we believe debt-to-EBITDA will be
sustained above 5.0x due to underperformance in key markets,
audience and advertising revenue migration to competing media
platforms, or leveraging events such as debt financed acquisitions
or shareholder distributions. Ratings could also be downgraded if
free cash flow deteriorates to less than 5% of debt balances or if
there is erosion in the EBITDA cushion with its financial
covenants.
The principal methodology used in these ratings was Global
Broadcast and Advertising Related Industries published in May
2012.
Entercom Communications Corp., headquartered in Bala Cynwyd, PA, is
one of the five largest US radio broadcasters based on revenue. The
company was founded in 1968 by Joseph M. Field, Chairman, and is
focused primarily on radio broadcasting with 124 radio stations in
27 large and mid-sized markets, including Los Angeles, San
Francisco, Boston, Seattle, and Denver. Entercom is publicly
traded with Joseph M. Field (Chairman) and David J. Field
(President /CEO and son of the Chairman) owning over 30% of the
combined economic interest in the company with over 70% of the
voting power. Remaining shares are widely held. In July 2015, the
company acquired Lincoln Financial Media Company for $105 million
plus working capital which added 13 stations in top 20 markets.
Revenue for the 12 months ended June 30, 2016, was
$449 million.
ENTERCOM COMMUNICATIONS: S&P Affirms 'B+' CCR, Outlook Positive
---------------------------------------------------------------
S&P Global Ratings said that it revised its rating outlook on
Entercom Communications Corp. to positive from negative and
affirmed its 'B+' corporate credit rating on the company.
At the same time, S&P assigned its 'BB-' issue-level rating and '2'
recovery rating to Entercom Radio LLC's proposed $60 million
revolving credit facility due 2021 and $460 million term loan B due
2023. The '2' recovery rating indicates S&P's expectation for
substantial recovery (70%-90%; upper half of the range) of
principal in the event of a payment default. Entercom Radio is a
subsidiary of Entercom.
S&P will withdraw its existing issue-level ratings once the
company's bank debt and notes are repaid.
"The outlook revision reflects Entercom's improved leverage and
margin of compliance with its covenants as a result of EBITDA
growth and debt repayment over the past three quarters," said S&P
Global Ratings' credit analyst Jeanne Shoesmith. "We expect that
leverage, which was 4.5x as of June 30, 2016, and 5x a year
earlier, will continue to decline as a result of EBITDA growth and
debt repayment." Entercom repaid about $20 million of debt in the
first half of 2016. The proposed refinance transaction results in
a modest increase in leverage (4.6x versus actual leverage of 4.5x
as of June 30, 2016). However, S&P expects that the company will
continue to direct a portion of free cash flow to debt repayment
over the next 12-18 months. As a result, S&P projects that
Entercom will have a 20%-25% EBITDA margin of compliance with its
proposed leverage covenant in 2017.
The positive rating outlook reflects S&P's expectation that
Entercom will maintain adequate liquidity, including a 20%-25%
EBITDA margin of compliance with its proposed covenants, while
reducing leverage to below 4x over the next 12-18 months.
S&P could raise the corporate credit rating if the company reduces
its leverage to 4x or lower on a sustained basis. S&P could also
raise the rating if Entercom meaningfully diversifies its business,
if it expands its EBITDA margins, or if the radio industry returns
to some modest pace of sustainable growth.
S&P could revise the outlook to stable if Entercom's leverage
remains in the mid-4x area as a result of debt-financed
acquisitions or if EBITDA declines due to deteriorating operating
performance or integration issues.
ENTERPRISE CLOUDWORKS: Disclosures OK'd; Plan Hearing on Nov. 16
----------------------------------------------------------------
The Hon. Stephen Raslavich of the U.S. Bankruptcy Court for the
Eastern District of Pennsylvania has approved Enterprise
Cloudworks, Incorporated's amended disclosure statement dated Oct.
4, 2016 describing the Debtor's amended plan of reorganization
dated Oct. 4, 2016.
The Confirmation Hearing will be held on Nov. 16, 2016, at 1:30
p.m. (prevailing Eastern time).
Objections to the confirmation of the Plan or proposed
modifications to the Plan must be filed by 5:00 p.m. (prevailing
Eastern time) on Nov. 7,2016.
Each ballot must be properly executed, completed and the original
thereof delivered to Debtor's counsel no later than 4:00 p.m.
(prevailing Eastern time) on Nov. 7,2016. No later than Nov. 11,
2016, the Debtor will file its vote tabulation report.
The Debtor will file all Exhibits to the Plan with the Court no
later than Nov. 11, 2016.
The Troubled Company Reporter, on Oct. 7, 2016, reported that the
Debtor's plan of reorganization proposes to convert $742,920 of
secured debt into equity and provide for a recovery of up to 20%
for unsecured creditors.
The Plan embodies a settlement among the Debtor and R&F
International Holdings, LLC, its senior secured creditor, under
the
2016 Credit Agreement on a consensual transaction that will reduce
the Debtor's total debt by $742,920 as of the Petition Date.
R&F provided the Debtor a $1 million superpriority priming DIP
credit facility to enable the Debtor to support operations during
the Chapter 11 case. The DIP facility will be repaid in full by
the exit facility, which will also be provided by R&F.
The Debtor has determined that a prolonged Chapter 11 case would
damage its ongoing business operations and threaten its viability
as a going concern. Under the Plan, the Debtor will equitize 100%
of its obligations under the 2016 Credit Agreement and thereby
de-lever the Debtor's balance sheet by approximately $742,920.
After emergence from Chapter 11, the Debtor's debt obligations
with
recourse to the Reorganized Debtor will be the exit facility
comprised of a revolving credit facility in the amount of
$1,500,000 with availability as of the Effective Date sufficient
to
pay transaction expenses, to pay the initial distributions
required
under the Plan, provide the Reorganized Debtor with working
capital
necessary to run its business and to refinance the DIP Facility.
The Debtor's Plan provides that each holder of an allowed general
unsecured claim will receive the lesser of (a) 20% of its allowed
claim or (b) a pro-rata share of $375,000. No general unsecured
claim will be allowed to the extent that is for postpetition
interest, fees or other similar postpetition charges.
If the total amount of allowed general unsecured claims do not
exceed $1,875,000, holders of the claims will receive a 20%
distribution. On the other hand, if the total allowed unsecured
claims total one of four alternative hypothetical amounts,
$2,005,000, $2,130,000, $2,600,000 or $2,800,000 the distribution
will be 19%, 18% 14% or 13%, respectively.
Holders of 2016 Credit Agreement claims and general unsecured
claims are impaired and entitled to vote on the Plan. Holders of
interests are deemed to reject the Plan.
A copy of the Disclosure Statement is available for free at:
http://bankrupt.com/misc/paeb16-15198_67_DS_ECI.pdf
About Enterprise Cloudworks
With executive offices in Bryn Mawr, Pennsylvania, Enterprise
Cloudworks, Incorporated, was formed with the intention to develop
an innovative no-code software development platform that would be
used to rapidly develop enterprise software. The no-code software
development platform software is still in the development stage.
Enterprise Cloudworks filed a Chapter 11 petition (Bankr. E.D. Pa.
Case No. 16-15198) on July 22, 2016. The petition was signed by
Christopher Gali, CEO & Co-Founder. The case is assigned to Judge
Stephen Raslavich.
The Debtor reported total assets of $329,777 and total liabilities
of $2.46 million as of July 8, 2016.
The Debtor engaged Maschmeyer Karalis, P.C., in Philadelphia, as
counsel, and Eisner Amper LLP as financial advisor.
The Court established Sept. 9, 2016, as the general bar date and
Jan. 19, 2017, as the governmental unit bar date.
ENVIVA PARTNERS: S&P Assigns 'B+' CCR & Rates $300MM Notes 'B+'
---------------------------------------------------------------
S&P Global Ratings said it assigned its 'B+' corporate credit
rating to master limited partnership (MLP) Enviva Partners L.P. The
outlook is stable.
S&P also assigned its 'B+' issue-level rating and '4' recovery
rating to Enviva's $300 million senior unsecured notes due 2021.
The '4' recovery rating indicates that lenders can expect average
recovery (30% to 50%, lower half of the range) recovery in the
event of a payment default. Enviva Partners Finance Corp. is a
co-issuer of the debt.
"Based on the above-average contract profile, we expect the company
to maintain adequate liquidity and adjusted debt to EBITDA below 4x
through 2018," said S&P Global Ratings credit analyst Jacqueline
Fay.
S&P could lower the rating if Enviva is unable to re-contract or
replace counterparties for offtake volumes leading to sustained
debt to EBITDA exceeding 4x.
S&P could raise the rating if Enviva successfully improves its
scale and diversity by means of asset dropdowns or additional
contracts while maintaining adjusted debt to EBITDA below 3.5x.
ESPLANADE HL: Case Summary & Top Unsecured Creditors
----------------------------------------------------
Debtor affiliates filing separate Chapter 11 bankruptcy petitions:
Debtor Case No.
------ --------
Esplanade HL, LLC 16-33008
20635 Abbey Woods Ct N #303
Frankfort, IL 60423
2380 Esplanade Drive, LLC 16-33010
20635 Abbey Woods Ct. N #303
Frankfort, IL 60423
9501 W. 144th Place, LLC 16-33011
20635 Abbey Woods Ct. N #303
Frankfort, IL 60423
171 W. Belvidere Road, LLC 16-33013
20635 Abbey Woods Ct N #303
Frankfort, IL 60423
Big Rock Ranch, LLC 16-33015
20635 Abbey Woods Ct. N #303
Frankfort, IL 60423
Chapter 11 Petition Date: October 17, 2016
Court: United States Bankruptcy Court
Northern District of Illinois (Chicago)
Judge: Hon. Carol A. Doyle (16-33008)
Hon. Donald R Cassling (16-33010)
Hon. Timothy A. Barnes (16-33011)
Hon. Janet S. Baer (16-33013)
Hon. Deborah L. Thorne (16-33015)
Debtors' Counsel: Harold D. Israel, Esq.
GOLDSTEIN & MCCLINTOCK LLLP
208 South LaSallle Street, Suite 1750
Chicago, IL 60604
Tel: 312 337-7700
E-mail: haroldi@restructuringshop.com
- and -
Sean P Williams, Esq.
GOLDSTEIN & MCCLINTOCK LLLP
208 S. LaSalle Street, Suite 1750
Chicago, IL 60604
Tel: (312) 219-6735
Fax: (312) 277-2305
E-mail: seanw@restructuringshop.com
Estimated Estimated
Assets Liabilities
---------- -----------
Esplanade HL, LLC $1M-$10M $1M-$10M
2380 Esplanade Drive $1M-$10M $1M-$10M
9501 W. 144th Place $1M-$10M $1M-$10M
171 W. Belvidere $1M-$10M $1M-$10M
Big Rock Ranch $500K-$1M $100K-$500K
The petition was signed by William Vander Velde III, sole member
and manager.
A copy of Esplanade HL, LLC's list of 11 unsecured creditors is
available for free at
http://bankrupt.com/misc/ilnb16-33008.pdf
A copy of 2380 Esplanade Drive's list of 20 largest unsecured
creditors is available for free at
http://bankrupt.com/misc/ilnb16-33010.pdf
A copy of 9501 W. 144th Place's list of 1 unsecured creditor is
available for free at:
http://bankrupt.com/misc/ilnb16-33011.pdf
A copy of 171 W. Belvidere's list of 20 largest unsecured creditors
is available for free at
http://bankrupt.com/misc/ilnb16-33013.pdf
A full-text copy of Big Rock Ranch's petition is available at:
http://bankrupt.com/misc/ilnb16-33015.pdf
EXCO RESOURCES: S&P Raises CCR to CCC+ on Capital Restructuring
---------------------------------------------------------------
S&P Global Ratings raised its corporate credit rating on
Dallas-based EXCO Resources Inc. to 'CCC+' from 'SD' (selective
default). The outlook is negative.
S&P also raised its issue-level rating on EXCO's existing senior
unsecured notes to 'CCC-' from 'D'. The recovery rating on these
notes remains '6', indicating negligible (0% to 10%) recovery in
the event of a payment default.
S&P's issue-level ratings on EXCO's $700 million senior secured
second-lien term loans due 2020 remains 'CCC+'. The recovery
rating on these loans is '4', reflecting S&P's expectation of
average (30% to 50%; higher end of range) recovery in the event of
a payment default.
S&P's issue-level rating on EXCO's senior secured revolving bank
debt is 'B' and S&P's recovery rating on this debt remains '1',
indicating very high (90% to 100%) recovery in the event of a
payment default.
"The rating action follows our review of EXCO's capital structure
and liquidity position following recent debt repurchases, and our
expectations for future restructuring actions," said S&P Global
credit analyst Christine Besset.
The negative outlook reflects S&P's expectation that, barring
additional financing, EXCO's liquidity position will likely
deteriorate in the coming year given our continued weak outlook for
commodity prices and the company's high interest expense and
transportation commitments. S&P could lower the ratings if it
believed the company might default within a year.
S&P could consider a positive rating action if the company were
able to reduce debt leverage to below 6x and bring FFO to debt
closer to 12%, while sustaining adequate liquidity. This scenario
would most likely occur if the company was able to execute
additional capital market transactions to strengthen liquidity and
reduce debt.
FANSTEEL INC: Committee Hires MorrisAnderson as Financial Advisor
-----------------------------------------------------------------
The Official Committee of Unsecured Creditors seeks authorization
from the U.S. Bankruptcy Court for the Southern District of Iowa to
retain MorrisAnderson & Associates, Ltd., as financial advisor,
effective as of October 5, 2016 retention date.
The Committee requires MorrisAnderson to:
(a) review of financial related disclosures required by the
Court, including the Schedules of Assets and Liabilities, the
Statement of Financial Affairs and Monthly Operating Reports;
(b) assist the Committee with information and analyses
required pursuant to financing, including but not limited to,
preparation for hearings regarding the use of cash collateral and
DIP financing;
(c) assist with a review of any of the Debtors' proposed key
employee retention and other employee benefit programs;
(d) assist and advice to the Committee with respect to the
Debtors' identification of core business assets and disposition of
assets or liquidation thereof;
(e) assist with review of the Debtors' performance of
cost/benefit evaluations with respect to the affirmation or
rejection of various executory contracts and leases;
(f) assist regarding the evaluation of business operations and
identification of areas of potential cost savings, including
overhead and operating expense reductions and efficiency
improvements;
(g) assist in the review of financial information distributed
by or provided to the Debtors, to creditors, or others, including,
but not limited to, cash flow projections and budgets, cash
receipts and disbursement analysis of various asset and liability
accounts, and analysis of proposed transactions for which Court
approval is sought;
(h) attend at meetings and assist in discussions with the
Debtor, customers, vendors, potential investors, banks, or other
secured lenders, the Committee and any other official committees
organized in these Cases, the U.S. Trustee, other parties in
interest and professionals hired by the same, as requested;
(i) assist in the review and/or preparation of information and
analysis necessary for the confirmation of any proposed plan of
reorganization in these Cases, including the consideration of the
proposed valuation of entities;
(j) assist in the review and/or preparation of information and
analysis necessary for approval of any sale order in conjunction
with a sale of all or substantially all of the Debtors' assets
under section 363 of the Bankruptcy Code, including evaluation of
the marketing process and proposed acquisition price; and,
(k) render such other general business consulting or such
other assistance as to the Committee or its counsel may deem
necessary that are consistent with the role of a financial advisor
and not duplicative of services provided by other professionals of
the cases.
MorrisAnderson will be paid on a compromised blended rate at $450
per hour by work performed by its professionals. Otherwise,
MorrisAnderson will be paid at these hourly rates:
Associate Directors $275
Senior Principal $595
Daniel F. Dooley $595
Mark T. Iammartino $425
Steve Agran $450
MorrisAnderson will also be reimbursed in accordance with the
applicable provisions of the Bankruptcy Code, the Bankruptcy Rules,
the Local Rules of the United States Bankruptcy Court for the
Southern District of Iowa, further orders of the Court, the
guidelines established by the Office of the United States Trustee
and that certain orders that may be entered in the cases, for all
services performed and expenses incurred on or after the retention
date.
Dan Dooley, principal at MorrisAnderson, 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.
MorrisAnderson can be reached at:
Dan Dooley
MORRISANDERSON & ASSOCIATES, LTD
55 West Monroe Street, Suite 2350
Chicago, IL 60603
Phone: (312) 254-0880
Fax: (312) 727-0180
Email: ddooley@morrisanderson.com
About Fansteel Inc.
Headquartered in Creston, Iowa, Fansteel operates four business
units at four locations in the USA and one in Mexico with a
workforce of more than 600 employees. Fansteel generated
approximately $87.4 million in revenue in 2015 on a consolidated
basis. WDC contributes approximately 67% of Fansteel's sales. The
rest of the sales are generated from Intercast, a division of
Fansteel, and other non-debtor subsidiaries, as disclosed in court
documents.
Fansteel, Inc., and subsidiaries Wellman Dynamics Corporation and
Wellman Dynamics Machinery & Assembly Inc., each filed a voluntary
petition under Chapter 11 of the Bankruptcy Code. The cases are
pending in the U.S. Bankruptcy Court for the Southern District of
Iowa (Bankr. S.D. Iowa proposed Lead Case No. 16-01823) before
Judge Anita L. Shodeen.
The Debtors listed total assets of $32.9 million and total debt of
$41.97 million as of the bankruptcy filing.
The U.S. Trustee for Region 12 on Sept. 23, 2016, appointed nine
creditors of Fansteel Inc. to serve on the official committee of
unsecured creditors.
FANSTEEL INC: Committee Seeks to Employ Archer & Greiner as Counsel
-------------------------------------------------------------------
The Official Committee of Unsecured Creditors seeks authorization
from the U.S. Bankruptcy Court for the Southern District of Iowa to
retain Archer & Greiner, P.C., as counsel, effective as of
September 26, 2016 retention date.
The Committee requires Archer & Greiner to:
(a) advise the Committee on all legal issues as they arise;
(b) represent and advise the Committee regarding the terms of
any sales of assets or plans of reorganization or liquidation and
assisting the Committee in negotiations with the Debtor and other
parties;
(c) investigate the Debtors' assets and pre-bankruptcy
conduct;
(d) analyze the perfection and priority of the liens of the
Debtors' secured creditors;
(e) prepare, on behalf of the Committee, all necessary
pleadings, reports, and other papers;
(f) represent and advise the Committee in all proceedings in
these cases;
(g) assist and advise the Committee in its administration;
and,
(h) provide such other services as are customarily provided by
counsel to a creditors' committee in cases of this kind.
Archer & Greiner will be paid at these hourly rates:
Associates $305
Senior Partners $535
Paraprofessionals $205
Stephen M. Packman $535
David W. Carickhoff, Esq. $510
Jerrold S. Kulback, Esq. $390
Alan M. Root, Esq. $385
Douglas G. Leney, Esq. $310
Jennifer L. Dering, Esq. $305
Archer & Greiner will also be reimbursed in accordance with the
applicable provisions of the Bankruptcy Code, the Bankruptcy Rules,
further orders of the Court, and the guidelines established by the
Office of the United States Trustee for all services performed and
expenses incurred.
Stephen M. Packman, Esq., shareholder in the Bankruptcy,
Reorganization and Creditors' Rights Practice Group of the law firm
of Archer & Greiner, 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.
Archer & Greiner can be reached at:
Stephen M. Packman, Esq.
David W. Carickhoff, Esq.
Jerrold S. Kulback, Esq.
Alan M. Root, Esq.
Douglas G. Leney, Esq.
Jennifer L. Dering, Esq.
ARCHER & GREINER, P.C.
One Liberty Place, 32nd Floor
1650 Market Street
Philadelphia, PA 19103-7393
Tel.: (215) 963-3300
Fax: (215) 963-9999
Email: spackman@archerlaw.com
dcarickhoff@archerlaw.com
jkulback@archerlaw.com
aroot@archerlaw.com
dleney@archerlaw.com
jdering@archerlaw.com
About Fansteel Inc.
Headquartered in Creston, Iowa, Fansteel operates four business
units at four locations in the USA and one in Mexico with a
workforce of more than 600 employees. Fansteel generated
approximately $87.4 million in revenue in 2015 on a consolidated
basis. WDC contributes approximately 67% of Fansteel’s sales. The
rest of the sales are generated from Intercast, a division of
Fansteel, and other non-debtor subsidiaries, as disclosed in court
documents.
Fansteel, Inc., and subsidiaries Wellman Dynamics Corporation and
Wellman Dynamics Machinery & Assembly Inc., each filed a voluntary
petition under Chapter 11 of the Bankruptcy Code. The cases are
pending in the U.S. Bankruptcy Court for the Southern District of
Iowa (Bankr. S.D. Iowa proposed Lead Case No. 16-01823) before
Judge Anita L. Shodeen.
The Debtors listed total assets of $32.9 million and total debt of
$41.97 million as of the bankruptcy filing.
The U.S. Trustee for Region 12 on Sept. 23, 2016, appointed nine
creditors of Fansteel Inc. to serve on the official committee of
unsecured creditors.
FANSTEEL INC: Committee Taps Nyemaster Goode as Counsel
-------------------------------------------------------
The Official Committee of Unsecured Creditors seeks authorization
from the U.S. Bankruptcy Court for the Southern District of Iowa to
retain Nyemaster Goode, P.C., as counsel, effective as of September
26, 2016 petition date.
The Committee requires Nyemaster Goode to:
(a) advise the Committee on all legal issues as they arise;
(b) represent and advise the Committee regarding the terms of
any sales of assets or plans of reorganization or liquidation and
assisting the Committee in negotiations with the Debtor and other
parties;
(c) investigate the Debtors' assets and pre-bankruptcy
conduct;
(d) analyze the perfection and priority of the liens of the
Debtors' secured creditors;
(e) prepare, on behalf of the Committee, all necessary
pleadings, reports, and other papers;
(f) represent and advise the Committee in all proceedings of
the cases;
(g) assist and advise the Committee in its administration;
and,
(h) provide such other services as are customarily provided by
counsel to a creditors' committee of similar cases.
Nyemaster Goode will be paid at these hourly rates:
Associates $175
Senior Partners $400
Paraprofessional $130
Kristina M. Stanger, Esq. $300
Jeffrey W. Courter, Esq. $375
Nyemaster Goode will also be reimbursed for reasonable
out-of-pocket expenses incurred.
Ms. Stanger 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.
Nyemaster Goode can be reached at:
Kristina M. Stanger, Esq.
NYEMASTER GOODE, P.C.
700 Walnut Street, Suite 1600
Des Moines, IA 50309-3899
Phone: 515-283-3100
Fax: 515-283-3108
About Fansteel Inc.
Headquartered in Creston, Iowa, Fansteel operates four business
units at four locations in the USA and one in Mexico with a
workforce of more than 600 employees. Fansteel generated
approximately $87.4 million in revenue in 2015 on a consolidated
basis. WDC contributes approximately 67% of Fansteel’s sales. The
rest of the sales are generated from Intercast, a division of
Fansteel, and other non-debtor subsidiaries, as disclosed in court
documents.
Fansteel, Inc., and subsidiaries Wellman Dynamics Corporation and
Wellman Dynamics Machinery & Assembly Inc., each filed a voluntary
petition under Chapter 11 of the Bankruptcy Code. The cases are
pending in the U.S. Bankruptcy Court for the Southern District of
Iowa (Bankr. S.D. Iowa proposed Lead Case No. 16-01823) before
Judge Anita L. Shodeen.
The Debtors listed total assets of $32.9 million and total debt of
$41.97 million as of the bankruptcy filing.
The U.S. Trustee for Region 12 on Sept. 23, 2016, appointed nine
creditors of Fansteel Inc. to serve on the official committee of
unsecured creditors.
FARMHAND SUPPLY: Hires Theodore Eftink as Accountant
----------------------------------------------------
Farmhand Supply, LLC, seeks authorization from the U.S. Bankruptcy
Court for the Eastern District of Missouri to employ Theodore
Eftink, CPA, as accountant.
The Debtor requires Theodore Eftink to:
(a) bring the books and records of the Debtor;
(b) file necessary tax returns, including sales and payroll;
and
(c) assist in the financial statement preparation.
Theodore Eftink will be paid at an hourly rate of $125, with the
exception of expert testimony in court, in which case his hourly
rate is $250. On occasion, Mr. Eftink's staff will assist him, and
their time will be billed at $85 per hour.
Mr. Eftink 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.
Theodore Eftink can be reached at:
Theodore Eftink, CPA
SIKESTON, MO ACCOUNTING SERVICE
102 South Interstate Drive,
Sikeston, MO 63801
Farmhand Supply, LLC, filed for Chapter 11 bankruptcy protection
(Bankr. E.D. Mo. Case No. 16-10742) on Sept. 9, 2016, estimating
its assets and liabilities at up to $50,000 each. J. Michael Payne,
Esq., at Limbaugh, Russell, Payne & Howard serves as the Debtor's
bankruptcy counsel.
FARMHAND SUPPLY: Seeks to Employ Limbaugh Firm as Attorney
----------------------------------------------------------
Farmhand Supply, LLC, seeks authorization from the U.S. Bankruptcy
Court for the Eastern District of Missouri to employ The Limbaugh
Firm as attorneys.
The Debtor requires Limbaugh to:
(a) give the Debtor legal advice with respect to its powers
and duties as Debtor in possession in the continued operation of
its business.
(b) prepare on behalf of Applicant, the owner of the Debtor,
as Debtor in Possession necessary application, answers, orders,
notices, reports and other legal papers; and,
(c) perform all other legal services for the Debtor as Debtor
in Possession which may be necessary.
J. Michael Payne, Esq., a partner at The Limbaugh Firm, will be
paid an hourly rate of $225. Peggy Rellergert, a parallegal at the
firm, will be paid an hourly rate of $85.
Mr. Payne 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.
Limbaugh can be reached at:
J. Michael Payne, Esq.
THE LIMBAUGH FIRM
407 N. Kingshighway, Suite 400
Cape Girardeau, MO 63702-1150
Farmhand Supply, LLC, filed for Chapter 11 bankruptcy protection
(Bankr. E.D. Mo. Case No. 16-10742) on Sept. 9, 2016, estimating
its assets and liabilities at up to $50,000 each. J. Michael Payne,
Esq., at Limbaugh, Russell, Payne & Howard serves as the Debtor's
bankruptcy counsel.
The Office of the U.S. Trustee on Oct. 11 disclosed in a court
filing that no official committee of unsecured creditors has been
appointed in the Chapter 11 case of Farmhand Supply, LLC.
FILTRATION GROUP: Moody's Confirms B2 CFR; Outlook Negative
-----------------------------------------------------------
Moody's Investors Service confirmed Filtration Group Corporation's
B2 Corporate Family Rating, the B2-PD Probability of Default rating
and the B2 senior secured first-lien term loan rating, concluding
the review for downgrade that was initiated on Aug. 29, 2016,
following Filtration Group's announcements to acquire the
industrial filtration business of MAHLE GmbH and the Porous
Technologies business of Essentra plc for a combined $345 million.
In related actions, Moody's assigned B2 senior secured first-lien
ratings to Filtration Group's proposed, upsized revolving credit
facility and delayed draw term loan. Moody's expects to withdraw
the B2 rating on the existing senior secured first-lien revolving
credit facility and the Caa1 rating on the senior secured
second-lien term loan upon closing of the transaction. The rating
outlook is negative.
RATINGS RATIONALE
The acquisitions of Mahle and Porous Technologies within such a
short timeframe are relatively ambitious as they represent a nearly
40% increase in revenues and a 33% increase in debt. Nonetheless,
Moody's expects Filtration Group's robust free cash flow profile,
driven by an 80%+ recurring revenue stream, to enable the company
to return credit metrics, namely debt-to-EBITDA, back to a level
commensurate with the pre-acquisitions level within 12-18 months.
The ability to restore metrics within this timeframe will
necessitate restraint by Filtration Group on larger acquisitions
until financial flexibility is solidly restored.
The addition of Mahle and Porous Technologies expands Filtration
Group's broad collection of brands that command leading market
positions in their niche sectors and serve a diverse range of
industries and filtration applications. Mahle's strength in
hydraulic fluid and industrial air filtration brings with it a
large installed base of factory equipment that drives a solid
recurring revenue stream. Porous Technologies broadens the life
sciences product offerings where margins are by far the strongest
among Filtration Group's four operating segments. Similar to
Filtration Group, Mahle and Porous Technologies are well positioned
to capitalize on the favorable end market fundamentals driving the
global filtration industry and with their significant European
exposure, better balance Filtration Group's geographic profile. In
addition, both companies should benefit from increased focus and
resources within Filtration Group which is in sharp contrast to
their previous situations where they didn't fit into the long-term
strategies of their respective parent companies.
The negative outlook reflects limited flexibility for Filtration
Group to deviate or prolong the debt reduction/credit metric
restoration process as well as the potential challenges integrating
Mahle, based in Germany, and Porous Technologies. Pro forma for
the acquisitions, debt-to-EBITDA in the mid-6x range (after Moody's
standard adjustments) is weak for the B2-rating level, however free
cash flow-to-debt over 5% is solid for the rating and highlights
the company's ability and potential to quickly restore balance
sheet flexibility.
There currently is no upward rating pressure. Over time, the
outlook could be stabilized if annual organic growth reaches the
mid-single digit level, translating into greater than anticipated
free cash flow for accelerated debt repayment. Margin expansion
greater than 1% per year would also be viewed favorably.
Quantitatively, debt-to-EBITDA in the low-5x or below range for an
extended period of time could result in positive rating momentum.
Ratings could be downgraded if there is a material decline in
revenues potentially driven by several key end markets correlating
to the downside or increased competition from larger competitors,
flat-to-weaker year-over-year free cash flow or the inability to
meaningfully increase margins in the short-term. Downward rating
pressure could result from debt-to-EBITDA remaining at or above 6x
or free cash flow-to-debt falling below 5%.
Moody's took these rating actions on Filtration Group Corporation:
Ratings confirmed:
-- Corporate Family Rating at B2
-- Probability of Default at B2-PD
-- Senior Secured First-Lien Term Loan at B2 (LGD3)
-- Rating outlook changed to negative from rating under review
for downgrade
Ratings assigned:
-- Senior Secured First-Lien Revolving Credit Facility ($100 –
$115 million) at B2 (LGD3)
-- Senior Secured First-Lien Delayed Draw Term Loan at B2
(LGD3)
Ratings expected to be withdrawn upon funding of the proposed
transaction:
-- Senior Secured First-Lien Revolving Credit Facility
($75 million) at B2 (LGD3)
-- Senior Secured Second-Lien Term Loan at Caa1 (LGD6)
Filtration Group is a designer and manufacturer of filtration
products to a broad array of end markets, operating through its
Life Sciences, Process Technologies, Fluid and Environmental Air
divisions. Filtration Group is 80%-owned by an affiliate of
Madison Industries out of Chicago, IL with the remaining 20% owned
by management. Revenues for the latest twelve months ending
June 30, 2016, were approximately $820 million - pro forma with
both acquisitions pushes revenues to over $1.1 billion.
The principal methodology used in these ratings was Global
Manufacturing Companies published in July 2014.
FILTRATION GROUP: S&P Assigns 'B' Rating on $104MM Term Loan
------------------------------------------------------------
S&P Global Ratings said that it has assigned its 'B' issue-level
rating and '3' recovery rating to Filtration Group Corp.'s proposed
$104 million first-lien incremental term loan and its proposed $237
million first-lien delayed draw term incremental loan. The '3'
recovery indicates S&P's expectation for meaningful (50%-70%; lower
end of the range) recovery in the event of a payment default.
At the same time, S&P affirmed all of its ratings on Filtration
Group Corp., including S&P's 'B' corporate credit rating. The
outlook remains stable.
S&P expects to withdraw its ratings on the second-lien term loan
when it is repaid.
"The corporate credit rating affirmation reflects our view that
generally positive end-market trends in most of the company's
filtration markets will allow the company to maintain
debt-to-EBITDA in the 5x-6x range and funds from operations
(FFO)-to-debt of less than 12%, inclusive of the proposed
acquisitions," said S&P Global credit analyst Svetlana Olsha. S&P
believes the acquisitions of Mahle Industrial Filtration and Porous
Technologies are in line with Filtration Group's strategy to
acquire and expand its filtration business by capturing economies
of scale and end-market coverage; however, the company's
acquisitive strategy comes with some integration risks. S&P
expects that the company will sustain its good operating
performance and generate moderate free cash flow over the next
12-18 months, and continue to fund acquisitions with cash on hand
or debt.
The stable outlook on Filtration Group Corp. reflects S&P's
expectation that relatively favorable end-market conditions will
enable the company to maintain debt-to-EBITDA in the 5x-6x range
and FFO-to-total debt of about 10% over the next 12 months.
S&P could lower the rating if it expects the company's leverage
will exceed 7.5x as a result of a cyclical downturn, operational
inefficiencies, or acquisition integration challenges. S&P could
also lower the rating if the company draws on its revolver to a
level at which the springing net leverage covenant would take
effect and if S&P expects the headroom under the covenant to be
less than 15%.
S&P could raise the rating by one notch if stronger-than-expected
growth in the company's end markets and a more conservative
financial policy improves its leverage below 5x and its FFO-to-debt
ratio above 12% and both measures remained at those levels.
FIRST CAR PRO: U.S. Trustee Unable to Appoint Committee
-------------------------------------------------------
The Office of the U.S. Trustee on Oct. 14 disclosed in a court
filing that no official committee of unsecured creditors has been
appointed in the Chapter 11 case of First Car Pro Auto Sales LLC.
First Car Pro Auto Sales LLC sought protection under Chapter 11 of
the Bankruptcy Code (Bankr. S.D. Fla. Case No. 16-21209) on August
14, 2016. The Debtor is represented by Paul E. Gifford, Esq., at
the Law Offices of Paul E. Gifford, Chartered.
FOUNDATION HEALTHCARE: Signs Asset Purchase Pact with Healthcrest
-----------------------------------------------------------------
Foundation Healthcare, Inc., Foundation Surgery Affiliates LLC,
Foundation Surgery Management, LLC and Healthcrest Surgical
Partners, LLC have entered into a Purchase Agreement pursuant to
which they agreed to, and on Oct. 12, 2016, they sold the
membership interests in their wholly-owned subsidiary Foundation
Surgery Holdings, LLC and all of the capital stock in their
wholly-owned subsidiary somniTech, Inc. along with substantially
all of the assets of Foundation Surgery Management, LLC to
Healthcrest Surgical Partners, LLC for $2.5 million in cash and a
$2.75 million subordinated promissory note.
The purchase price is subject to adjustment by the amount that the
working capital of the ASC entities as of Oct. 12, 2016, is less
than $100,000. Through FSH and FSM, the Companies owned
noncontrolling interests in seven ambulatory surgery centers or
ASCs and provided management services to those ASCs along with two
other ASCs that they did not maintain any ownership. The
principals of Healthcrest were the management of the Company's ASC
division prior to the transaction.
At closing, the Companies received $2.5 million in cash and a
subordinated promissory note for $2.75 million. The note provides
that they will receive interest at a rate of prime plus 2.5% per
year, with a floor of 6%, payable monthly. Beginning on Nov. 1,
2017, Healthcrest will make monthly principal and interest payments
based on a seven year amortization with a final payment of all
principal and interest on Oct. 1, 2019. The promissory note is
secured by the personal property of Healthcrest, but the Company's
security interest and its right to be repaid on the note is
subordinated in all respects to the senior lenders of Healthcrest.
The Company will use the $2.5 million from the proceeds from the
transaction to pay down its line of credit with its senior lender.
About Foundation Healthcare
Oklahoma City-based Foundation Healthcare is a healthcare services
company primarily focused on owning controlling interests in
surgical hospitals and the inclusion of ancillary service lines.
The Company currently owns controlling and noncontrolling
interests in surgical hospitals located in Texas. The Company also
owns noncontrolling interests in ambulatory surgery centers
("ASCs") located in Texas, Oklahoma, Pennsylvania, New Jersey,
Maryland and Ohio.
Additionally, the Company provides sleep testing management
services to various rural hospitals in Iowa, Minnesota, Missouri,
Nebraska and South Dakota under management contracts with the
hospitals. The Company provides management services to a majority
of its Affiliates under the terms of various management agreements.
Prior to Dec. 2, 2013, the Company's name was
Graymark Healthcare, Inc.
As of June 30, 2016, Foundation had $127 million in total assets,
$136 million in total liabilities, $6.96 million in preferred stock
non-controlling interest and a total deficit of $15.7 million.
Foundation Healthcare reported net income attributable to the
Company's common stock of $5.19 million on $126 million of
revenues for the year ended Dec. 31, 2015, compared to a net loss
attributable to the Company's common stock of $2.09 million on
$102 million of revenues for the year ended Dec. 31, 2014.
GAINESVILLE ALF: Seeks to Use Cash Collateral
---------------------------------------------
Gainesville ALF, LLC, filed a motion asking the U.S. Bankruptcy
Court for the Northern District of Georgia for approval to use cash
collateral and provide adequate protection.
In the course of operating its business, the Debtor incurs minimal
operating expenses which are necessary for the continued operation
of its business, specifically and exclusively debt service to BOKF,
the Debtor's professional fees and the U.S. Trustee's quarterly
fees. The monthly contractual non-default interest accruing on the
indebtedness due to BOKF, N.A., is approximately $49,881. The
Debtor projects professional fees of approximately $10,000 per
month for the next 90 to 120 days.
Unless authorized to use the Cash Collateral in the ordinary course
of business, the Debtor's operations will be impaired and then
Debtor's ability to reorganize will be jeopardized.
All assets of the Debtor, primarily the Gainesville Facility and
revenues therefrom, have been pledged to BOKF, N.A., d/b/a Bank of
Oklahoma ("BOKF" or "Lender"), as indenture trustee under that
certain Indenture of Trust, dated as of March 1, 2015 for
approximately $8,350,000 of outstanding bonds issued by the
Gainesville & Hall County Development Authority ("GHDA"). The
outstanding principal balance on the BOKF secured obligation is
approximately $8,375,000, and the outstanding interest accrued
through the petition date is approximately $51,544 plus fees of
$8,322 for a total of $8,434,866. BOKF asserts liens upon and
security interests (hereinafter the "Lender Lien") against all
assets of the Debtor, including revenues from the Gainesville
Facility (hereinafter the "Collateral").
The Debtor has unsecured claims totaling approximately $192,175
including $8,724 in taxes, rising primarily out of the operations
of the Gainesville Facility since Affinity took over operations on
May 1, 2016.
The Gainesville Facility is the Debtor's only asset. The fair
market value of the facility is approximately $8,200,000.
As adequate protection for any interest Lender may have in cash
collateral, the Debtor proposes:
A. That Lender be granted a security interest in and lien upon
the Debtor's postpetition revenues from the Gainesville Facility
and proceeds to the same extent and priority as its prepetition
lien and interest in its prepetition collateral;
B. Continuation of the lien and security interest held by
Lender in its prepetition Collateral;
C. Payment of the contractual non-default interest accruing
monthly in the amount of $49,881 to Lender; and
D. Provision of the Debtor's monthly operating reports as
required by the United States Trustee and filed with the Court.
About Gainesville ALF
Gainesville ALF, LLC, d/b/a Oxton Place of Gainesville, LLC, d/b/a
Manor House of Gainesville, LLC, is a Georgia limited liability
company incorporated on January 1, 2015. Gainesville ALF owns a
personal care living facility with 42 units, licensed for 50,
located on 4.43 acres at 2030 Windward Lane, Gainesville, Georgia
30501 known as Manor House of Gainesville. The Gainesville
Facility is currently managed by Manor House Senior Living, LLC, an
affiliate of the Debtor, under a management agreement with the
Debtor dated March 1, 2016
Gainesville ALF filed a Chapter 11 petition (Bankr. N.D. Ga. Case
No. 16-21959) on Sept. 30, 2016, and is represented by Theodore N.
Stapleton, Esq. in Atlanta, Georgia. The petition was signed by
Dwayne Edwards, managing member.
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.
GARDEN FRESH: Taps Piper Jaffray as Financial Advisor
-----------------------------------------------------
Garden Fresh Restaurant Intermediate Holding, LLC, seeks
authorization from the U.S. Bankruptcy Court for the District of
Delaware to employ Piper Jaffray & Co. as financial advisor
effective as of the October 3, 2016 petition date.
The Debtor requires Piper Jaffray to:
(a) review and analyze the Debtors' business and operations
and the industry and markets which the Debtors serve and assist the
Debtors in preparing, monitoring and updating a going-forward
budget and periodic actual-to budget variance reports;
(b) assist the Debtors with developing their strategy with
regard to the Transaction;
(c) assist in analyzing the financial effects of the proposed
Transaction;
(d) assist the Debtors in managing their dealings, information
flow, analyses, and other communications with the lenders and their
advisors with respect to the Transaction;
(e) advise the Debtors in their negotiations regarding the
Transaction, including, if necessary, negotiating (along with the
Debtors' legal counsel) definitive agreements;
(f) coordinate with the Debtors' legal counsel regarding
matters related to the closing of the Transaction;
(g) at the Debtors' request, prepare in collaboration with the
Debtors a memorandum describing the Debtors, their history, the
nature of their operations, such financial information as may be
appropriate to reflect the Debtors' past performance and their
projected growth and earnings capacity, the management structure,
and such other information as is customary or as Piper Jaffray
considers appropriate in the circumstances;
(h) make initial contacts with potential investors or
purchasers approved by the Debtors;
(i) assist the Debtors in preparing for due diligence
conducted by potential investors or purchasers with respect to the
Transaction;
(j) when appropriate, arrange and participate in visits to the
Debtors' facilities by potential investors or purchasers and
otherwise make introductions and perform services as Piper Jaffray
recommends to develop potential investors' or purchasers' interest
in the business;
(k) assist the Debtors in negotiations with potential
investors or purchasers as the Debtors reasonably request;
(l) assist the Debtors in analyzing proposals received and in
negotiating definitive documentation regarding the Transaction;
(m) provide any other financial advisory and investment
banking services that may be mutually agreed upon by the Debtors
and Piper Jaffray; and
(n) provide support and necessary assistance to the Debtors in
connection with obtaining approval of any Transaction by the Court
in these chapter 11 cases.
The Debtor will pay Piper Jaffray a fee of $200,000 per month; and
in the event the Debtors consummate a Transaction pursuant to an
agreement or commitment entered into (i) during the term of Piper
Jaffray's engagement or (ii) during the 18-month period following
termination of Piper Jaffray's engagement, a cash fee at closing of
the Transaction of $1,750,000; provided that in the event the
Transaction closes with the Stalking Horse Bidder, the cash fee at
closing will be reduced to $250,000.
Piper Jaffray will also be reimbursed for reasonable out-of-pocket
expenses incurred, not to exceed in the aggregate amount of
$75,000.00.
Prior to the petition date, the Debtors have paid non-refundable
retainer and monthly fees of $450,000 to Piper Jaffray and
reimbursed expenses of Piper Jaffray of $35,072.22. No other
payments were made to Piper Jaffray in the 90 days prior to the
petition date. Piper Jaffray does not hold any prepetition claim
against the Debtors for fees or expenses.
Teri Stratton, Managing Director of Piper Jaffray, 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.
Piper Jaffray can be reached at:
Teri Stratton
PIPER JAFFRAY & CO.
1209 Orange Street
Wilmington, DE 19801
Email: teri.l.stratton@pjc.com
About Garden Fresh
Founded in 1978 and headquartered in San Diego, CA, Garden Fresh
owns of 123 Souplantation and Sweet Tomatoes restaurants across 15
states. Garden Fresh has 5,500 employees, approximately 5,000 of
whom are employed on an hourly basis.
Garden Fresh Restaurant Intermediate Holding, LLC, and its
affiliates filed chapter 11 petitions (Bankr. D. Del. Case Nos.
16-12174 to 16-12178) on Oct. 3, 2016. The petitions were signed by
John D. Morberg, chief executive officer.
The Debtors have hired Morgan, Lewis & Bockius LLP as general
counsel; Young, Conaway, Stargatt & Taylor, LLP as local counsel;
Piper Jaffray Companies as financial advisor; and Epiq Bankruptcy
Solutions, LLC as claims and noticing agent.
At the time of the filing, Garden Fresh Restaurant Intermediate
Holdings estimated assets and debts at $0 to $50,000.
GARDEN FRESH: Tiger Capital to Auction Assets on Oct. 24
--------------------------------------------------------
At the direction of the bankruptcy estate, Tiger Capital Group's
Commercial & Industrial Division will conduct an online auction on
Oct. 24, 2016, for cooking, food preparation, dining, support and
other equipment -- some as new as 2016 -- from 11 restaurant
locations owned by Garden Fresh Restaurant Corp. in the Chicago and
Dallas markets.
Ovens, mixers, refrigeration, dining tables, chairs, and other
assets are being offered for sale on an individual basis; complete
turnkey bids for fully loaded restaurants will also be considered.
The assets from the 11 restaurants have been consolidated into six
of the chain's locations in the Chicago and Dallas areas.
Online bidding will commence Oct. 19, 2016, at
http://www.soldtiger.com/and will close in rapid succession, live
auction style, on Oct. 24, beginning at 10:30 a.m. (CT). Assets
will be available for inspection on Oct. 23, from 10 a.m. to 4:00
pm (CT), at three Texas locations: Arlington, Irving, and Addison;
and three in Illinois: Aurora, Lombard, and Waukegan.
"This sale represents a rare buying opportunity for restaurateurs,
commissaries, grocers, municipal kitchens and other retail or
wholesale kitchen operators," said John Coelho, Senior VP of
Tiger's Commercial & Industrial division.
Available cooking equipment includes ovens, jacketed soup kettles,
and microwave ovens. Food preparation equipment up for sale
includes mixers, metro racks, soup warmers, steam tables, coffee
makers, and a frozen yogurt machines. Support equipment up for bid
includes ice makers, refrigerators, freezers, walk-ins, exhaust
hoods, dishwashers, prep tables, sinks, and a salad bars. Bidders
can also purchase dining tables and chairs, and more.
For a full catalog of the items offered and details on how to
schedule a site visit and bid, go to: http://www.SoldTiger.com/
About Garden Fresh
Founded in 1978 and headquartered in San Diego, CA, Garden Fresh
owns of 123 Souplantation and Sweet Tomatoes restaurants across 15
states. Garden Fresh has 5,500 employees, approximately 5,000 of
whom are employed on an hourly basis.
Garden Fresh Restaurant Intermediate Holding, LLC, and its
affiliates filed chapter 11 petitions (Bankr. D. Del. Case Nos.
16-12174 to 16-12178) on Oct. 3, 2016. The petitions were signed
by John D. Morberg, chief executive officer.
The Debtors hired Morgan, Lewis & Bockius LLP as general counsel;
Young, Conaway, Stargatt & Taylor, LLP as local counsel; Piper
Jaffray Companies as financial advisor; and Epiq Bankruptcy
Solutions, LLC as claims and noticing agent.
GARDEN FRESH: U.S. Trustee Forms 5-Member Committee
---------------------------------------------------
Andrew R. Vara, Acting U.S. Trustee for Region 3, on Oct. 13
appointed five creditors of Garden Fresh Restaurant Intermediate
Holdings, LLC, et al., to serve on the official committee of
unsecured creditors.
The committee members are:
(1) Valassis
Attn: Robin M Pinckney
One Targeting Centre
Windsor, CT 06075
Tel: (860) 602-3692
(2) Ramco Refrigeration AC, Inc.
Attn: Richard Harris
3921 E. Miraloma Ave
Anaheim, CA 92806
Tel: (714) 792-1034
Fax: (714) 792-1046
(3) Superior Paper & Plastic, Inc.
Attn: Mark Penhasian
1930 E. 65th Street
Los Angeles, CA 90001
Tel: (323) 581-5555, Ext 110
Fax: (323) 581-7777
(4) Ryder Transportation Services
Attn: Mike Mandell
11690 NW 105th Street
Miami, FL 33178
Tel: (305) 500-4417
Fax: (305) 500-3336
(5) The Coca-Cola Company
Attn: S. Curtis Marshall
1150 Sanctuary Parkway
Alpharetta, GA 30009
Tel: (404) 887-2681
About Garden Fresh
Founded in 1978 and headquartered in San Diego, CA, Garden Fresh
owns of 123 Souplantation and Sweet Tomatoes restaurants across 15
states. Garden Fresh has 5,500 employees, approximately 5,000 of
whom are employed on an hourly basis.
Garden Fresh Restaurant Intermediate Holding, LLC, and its
affiliates filed Chapter 11 petitions (Bankr. D. Del. Case Nos.
16-12174 to 16-12178) on Oct. 3, 2016. The petitions were signed
by John D. Morberg, chief executive officer.
The Debtors have hired Morgan, Lewis & Bockius LLP as general
counsel; Young, Conaway, Stargatt & Taylor, LLP as local counsel;
Piper Jaffray Companies as financial advisor; and Epiq Bankruptcy
Solutions, LLC as claims and noticing agent.
At the time of the filing, Garden Fresh Restaurant Intermediate
Holdings estimated assets and debts at $0 to $50,000.
GM OILFIELD: Proposes to Use Cash Collateral
--------------------------------------------
GM Oilfield & Trucking Services, LLC, is asking the U.S. Bankruptcy
Court for the Western District of Texas for approval to use cash
collateral.
Certain creditors assert a lien interest in the Debtor's accounts
receivable, which constitute as cash collateral. These secured
creditors may be entitled to adequate protection for the
postpetition use of their cash collateral:
(a) Commercial State Bank ("CSB") is purportedly a secured
creditor of GM by being the holder of a prepetition Lien dated July
29, 2014 and filed with the Texas Secretary of State's Office
creating certain lien interests (the "CSB Lien"). The CSB Lien
encompasses the Debtor's Inventory, Equipment and Accounts
Receivable (collectively referred to as the "Collateral").
(b) National Funding, Inc. ("National Funding") is a secured
creditor of GM by being a holder of a prepetition Lien dated July
27, 2015 and most recently amended on March 1, 2016 as filed with
the Texas Secretary of State's Office (the "National Funding Lien")
(Exhibit "2"). The National Funding Lien encompasses GM's
Inventory, Equipment and Accounts Receivable (collectively referred
to as the "Collateral"). National Funding is undersecured, thus,
there is no need for adequate protection payments to this Creditor.
GM will seek a court determination regarding National Funding's
unsecured status through the adjudication of a Motion for
Valuation.
(c) Electus 166 Trust ("Electus 166") is purportedly a secured
creditor of GM by being the holder of a prepetition Lien dated June
14, 2016 and filed with the Texas Secretary of State's Office (the
"Electus 166 Lien"). The Electus 166 Lien encompasses GM's
Inventory, Equipment and Accounts Receivable (collectively referred
to as the "Collateral"). Electus 166 was originally intended to
provide prepetition factoring services to GM but such factoring
arrangement never commenced. As of the filing of this Motion, GM
does not have a prepetition balance. Thus, there is no need for
adequate protection payments to this Creditor. GM will seek the
release of this Lien.
(d) The Internal Revenue Service ("IRS") is a secured creditor
of GM by being the holder of a prepetition Federal Tax Lien dated
July 18, 2016 and subsequently amended on Sept. 13, 2016 as filed
with the Texas Secretary of State's Office creating lien interests
to secure a prepetition claim in the combined amount of $883,505
(the "IRS Lien"). The IRS Lien encompasses GM's Inventory,
Equipment and Accounts Receivable (collectively referred to as the
"Collateral").
(e) Interstate Capital Corporation ("ICC") is a secured creditor
of GM by being a holder of a prepetition Lien dated Sept. 14, 2016
filed with the Texas Secretary of State's Office (the "ICC Lien").
There is currently not a prepetition balance owed to ICC that would
merit adequate protection payments be made from the GM during the
pendency of this Chapter 11 proceeding. The ICC Lien was filed
prepetition because ICC and GM intend to enter into a postpetition
factoring agreement. Thus, postpetition payments to ICC will be
determined and approved by this Court pursuant to its ruling on
GM's which is to be filed with this Motion.
All of information concerning the revenue produced by the Cash
Collateral will be set forth on GM's Thirty-Day Cash Budget.
GM proposes to provide the Secured Creditors with adequate
protection as follows.
A. Adequate Protection Payments. GM proposes to pay to the
Secured Creditors on an ongoing monthly basis as follows:
Balance of Monthly Adequate
Creditor Prepetition Claim Protection Payment
-------- ----------------- ------------------
Commercial State Bank $830,818 $4,500
National Funding, Inc. $250,000 $0
Electus 166 Trust $0 $0
Internal Revenue Service $883,505 $4,500
Interstate Capital Corp $0 As approved by Court
B. Maintenance of Casualty Insurance. GM will provide adequate
insurance coverage on any personal property to which a Secured
Creditors' liens may attach.
C. Affirmation of Prepetition Lien Priorities. GM will provide
the Secured Creditors replacement liens equivalent to the Secured
Creditors' prepetition Liens. These replacement liens will have the
same priority as the prepetition liens -- save and except for any
postpetition priority lien in favor of ICC for the factoring of
postpetition accounts receivable. However, such shall not have the
effect of constituting a final order or finding as to the validity
of the prepetition or postpetition liens of the Secured Creditors.
D. Attorney's Fees. GM desires to tender to its Bankruptcy
Counsel the amount of $5,000 per month to be deposited into
Counsel's IOLTA Trust Account for attorney's fees subject to a
future Fee Application to this Court by its general bankruptcy
counsel and special counsel. As such, GM requests that its Budget
providing for this expense also be approved.
About GM Oilfield
GM Oilfield & Trucking Services, LLC, doing business as GM
Trucking, is a Limited Liability Company formed under Texas law and
has operated in the Midland, Texas/Permian Basin area since July
14, 2014. GM serves the Permian Basin oilfield industry with a
fleet of vacuum trucks, pump/kill trucks, and hot oilers manned by
professional drivers. GM provides roustabout services, vacuum
trucks, pump trucks, kill trucks, backhoes & man lifts, hot oiler
trucks and construction trucks among other services for oil
exploration companies in the Permian basin.
GM Oilfield & Trucking Services filed a Chapter 11 petition (Bankr.
W.D. Tex. Case No. 16-31581) on Oct. 5, 2016. The petition was
signed by George Magallanes, manager.
The Hon. Christopher H. Mott is the case judge.
The Debtor tapped Carlos A. Miranda, III, Esq., at Miranda &
Maldonado, P.C., in El Paso, Texas, as counsel.
The Debtor estimated $500,000 to $1 million in assets and $1
million to $10 million in liabilities.
GM OILFIELD: Taps McChristian & Jeans as Legal Counsel
------------------------------------------------------
GM Oilfield & Trucking Services, LLC seeks approval from the U.S.
Bankruptcy Court for the Western District of Texas to hire
McChristian & Jeans, P.C. as its legal counsel.
McChristian will assist the Debtor in its negotiations with
creditors over their claims, preparation of a plan of
reorganization, and reorganization strategy.
Andrew Krafsur, Esq., the attorney designated to represent the
Debtor, will be paid an hourly rate of $300. Meanwhile, the firm's
legal assistants and law clerks will be paid $75 per hour.
In a court filing, Mr. Krafsur disclosed that he does not represent
any interest adverse to the Debtor and its bankruptcy estate.
The firm can be reached through:
Andrew B. Krafsur, Esq.
McChristian & Jeans, P.C.
5822 Cromo Drive
El Paso, TX 79912
Tel: (915) 532-7200
About GM Oilfield & Trucking Services
GM Oilfield & Trucking Services, LLC sought protection under
Chapter 11 of the Bankruptcy Code (Bankr. W. D. Texas Case No.
16-31581) on October 5, 2016. The petition was signed by George
Magallanes, manager.
The case is assigned to Judge Christopher H. Mott.
At the time of the filing, the Debtor estimated assets of less than
$1 million and liabilities of $1 million to $10 million.
GM OILFIELD: Taps Miranda & Maldonado as Legal Counsel
------------------------------------------------------
GM Oilfield & Trucking Services, LLC seeks approval from the U.S.
Bankruptcy Court for the Western District of Texas to hire Miranda
& Maldonado, P.C. as its legal counsel.
Miranda will provide "general day-to-day bankruptcy counsel
services" related to the Debtor's operation, according to court
filings.
Carlos Miranda III, Esq., and Gabe Perez, Esq., the attorneys
designated to represent the Debtor, will be paid $300 per hour and
$200 per hour, respectively. Meanwhile, the hourly rates of the
firm's legal assistants and law clerks range from $75 to $125.
In a court filing, Mr. Miranda disclosed that he does not represent
any interest adverse to the Debtor and its bankruptcy estate.
The firm can be reached through:
Carlos A. Miranda III, Esq.
Miranda & Maldonado, P.C.
5915 Silver Springs, Building 7
El Paso, TX 79912
Tel: (915) 587-5000
About GM Oilfield & Trucking Services
GM Oilfield & Trucking Services, LLC sought protection under
Chapter 11 of the Bankruptcy Code (Bankr. W. D. Texas Case No.
16-31581) on October 5, 2016. The petition was signed by George
Magallanes, manager.
The case is assigned to Judge Christopher H. Mott.
At the time of the filing, the Debtor estimated assets of less than
$1 million and liabilities of $1 million to $10 million.
GOLFSMITH INT'L: Dick's Prepares Bid for U.S. Stores
----------------------------------------------------
The American Bankruptcy Institute, citing Jessica DiNapoli of
Reuters, reported that Dick's Sporting Goods Inc (DKS.N) is
preparing a bid for the U.S. business of bankrupt Golfsmith
International Holdings Inc. (GOFTWG.UL), challenging an offer by
rival retailer Worldwide Golf Shops, people familiar with the
matter said.
According to the report, citing the people, while bids for
Golfsmith, owned by OMERS Private Equity Inc., the buyout arm of
one of Canada's largest pension funds, were due on Monday, Dick's
was given an extension until Oct. 18, 2016, to submit its offer.
The bankruptcy auction will the test the value of Golfsmith, which
suffered because of competition from discount retailers Wal Mart
Stores Inc (WMT.N) and Amazon.com Inc (AMZN.O), as well as golf's
waning popularity among younger customers, the report related.
Interest in golf has dropped in line with the fading career of star
golfer Tiger Woods, who once attracted many young fans to the
sport, the report further related.
Privately-held Worldwide Golf Shops was preparing to submit a bid
for Golfsmith on Oct. 17, in partnership with liquidators from
Great American Group LLC, the report added, one of the people
said.
A winner will be selected after an auction scheduled for Oct. 20,
2016, the report said. The goal is to close a sale, which a U.S.
bankruptcy court judge must approve, before the start of the
holiday shopping season, the report added.
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 Jan. 1, 2011, the Company operated 75
stores in 21 states and 33 markets.
Golfsmith International Holdings, Inc., and 12 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 agent 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.
GREENCROFT OBLIGATED: Fitch Affirms 'BB+' Rating on $43.98MM Bonds
------------------------------------------------------------------
Fitch Ratings has affirmed the 'BB+' rating on these bonds issued
by the Indiana Finance Authority on behalf of Greencroft Obligated
Group (GOG):
-- $43.98 million revenue bonds, series 2013A.
The Rating Outlook is Stable.
SECURITY
The bonds are secured by a mortgage on GOG's facilities, a gross
revenue pledge and a debt service reserve fund.
KEY RATING DRIVERS
LIGHT, BUT STABLE CASH POSITION: The 'BB+' rating reflects GOG's
light liquidity metrics. At the end of fiscal 2016 (June 30
year-end), GOG had $23.7 million of unrestricted cash and
investments, amounting to a modest 241 days operating expenses, 4.5
times (x) cushion ratio and 32.3% of total debt. Despite elevated
capital spending over the past few years, liquidity balances
remained relatively stable due to GOG's solid cash flow and receipt
of contributions from its affiliated foundation.
MODEST DEBT SERVICE COVERAGE: GOG's moderately high debt burden
combined with limited net entrance fee receipts results in modest
coverage of maximum annual debt service (MADS) of 1.7x and 1.6x in
fiscal 2016 and 2015, respectively. However, revenue-only MADS
coverage is solid at 1.3x in fiscal 2016 given GOG's higher
proportion of ALU and SNF service revenue.
ENDURING OPERATING HISTORY: GOG has a long history of operating in
each of its three service areas dating back to 1967, which Fitch
views as a key credit strength. GOG's unit mix is composed of a
higher proportion of assisted living unit (ALU) and skilled nursing
facility (SNF) beds relative to other continuing care retirement
communities (CCRCs), which helps serve as a differentiator in a
somewhat competitive marketplace.
RELATIONSHIP WITH GREENCROFT RETIREMENT COMMUNITIES: All three GOG
entities are affiliate entities of Greencroft Retirement
Communities, Inc. (GRC), which serves as their sole corporate
member and manager. GRC provides various benefits such as
financial planning, budgeting and management expertise. The
relationship dates back to the founding of each affiliate, the
first of which occurred nearly 50 years ago. Additionally, each
obligated group member entered into affiliation contracts with GRC
for perpetuity, which Fitch views favorably.
SOLID OCCUPANCY LEVELS: As a result of focused marketing efforts
and a healthy real-estate market, GOG's independent living unit
(ILU) occupancy levels remain healthy and averaged 92.8% in fiscal
2016. In addition, ALU occupancy of 92.8% improved over the prior
year levels as a result a new tiered pricing strategy based on
level of service that made COG's services more competitive. In
addition, SNF occupancy remains very good and averaged 91.2% during
fiscal 2016.
RATING SENSITIVITIES
SUSTAINED FINANCIAL PERFORMANCE: Given Greencroft Obligated Group's
moderately high debt burden, weakened operations or cash flow that
leads to lower debt service coverage ratios or liquidity metrics,
could lead to negative rating pressure.
CREDIT PROFILE
GOG consists of three separate type-C CCRCs (Greencroft Goshen -
located in Goshen, IN; Southfield Village [Southfield] - located in
South Bend, IN and Hamilton Grove [Hamilton] - located in New
Carlisle, IN) with a total of 412 ILUs, 188 ALUs, and 341 SNFs. In
fiscal 2016, GOG had total revenues of $39.6 million. Each
obligated group member is a part of and managed by GRC, which also
governs and provides management services for four additional
retirement communities with about 2,000 residents. GOG provides
very limited financial support to other non-obligated members of
GRC, with only $848,829 of advances to affiliates outstanding as of
June 30, 2016.
Long Operating History and Relationship with GRC
GOG has a long history of operating in each of its three northwest
Indiana markets dating back to 1967, which Fitch views as a
critical credit strength. Additionally, GOG's strong relationship
with GRC is viewed as a positive credit factor. The close
relationship dates back to the founding of each affiliate and all
obligated group members have entered into perpetual affiliation
contracts with GRC. To provide more financial flexibility to GOG,
the management fees paid to GRC are subordinate to debt service.
However, the bond documentation and Fitch do not exclude the GRC
management fees from their definitions of funds available for debt
service, which results in lower reported MADS coverage levels.
GOG's business line diversity with a greater proportion of ALU and
SNF revenues are a point of differentiation in a somewhat
competitive market. Additionally, ALU and SNF resident service
fees help generate relatively consistent earnings that supports
good revenue-only MADS coverage. Regardless, Fitch views GOG's
heavy reliance on SNF revenues and its Medicaid concentration (at
about 48% of SNF net revenues) as credit concerns given the
reimbursement and care management pressures from governmental
payors, particularly for short-stay Medicare rehabilitation
residents.
Supplemental Medicaid Payments
As of Nov. 1, 2015, GOG started to benefit from participation in
the state of Indiana's intergovernmental transfer payment (IGT)
program. To leverage the supplemental payments, GOG leased its
three SNFs to a government owned healthcare provider, Woodlawn
Hospital (located in Rochester, IN). Woodlawn Hospital now owns
the SNF's operating licenses and is a party to GOG's Medicaid
provider agreements. GOG remains the manager of the facilities
through a management services agreement.
This structure allows GOG to share the additional upper payment
limit funds with Woodlawn Hospital. The annual benefit for GOG
from the IGT program is about $2.1 million. This funding mechanism
is not expected to change in the near term, although either party
has the ability to terminate the agreement without cause with 90
days written notice. While Fitch expects GOG to continue to
benefit from supplemental Medicaid funding, it does not anticipate
positive rating movement due to this factor during the next 12
months. Accounting for the new structure somewhat depresses
operating revenue and expenses, thereby effecting certain financial
ratios and making comparability to prior periods and other CCRCs a
challenge.
Facilities Update
The series 2013 bonds were used fund a two-story addition to the
SNF at Greencroft Goshen, which accommodates up to 66 residents and
created more private rooms. Along with the SNF construction, GOG
made parking lot renovations and created a new entryway to the
campus. The expanded and renovated SNF received its certificate of
occupancy in September 2015. The final part of the project
included the renovation of another 32 rooms to create more private
accommodations, which was recently completed. Even though the
project increased the number of licensed SNF units at Greencroft
Goshen in fiscal 2016, the community is still operating with the
same 196 units prior to the completion of construction, maintaining
an occupancy ratio of 90.5%.
Debt Position
GOG's debt position is moderately high with MADS representing 13.3%
of revenues in fiscal 2016. Adjusted debt to capitalization of 96%
and debt to net available of 8.2x are somewhat unfavorable to
Fitch's below investment grade medians of 78.4% and 7.6x,
respectively in fiscal 2016. Management does not anticipate any
capital plans that will result in additional debt issues over the
next two years.
GRM BAY WASH: Taps Michael Companies as Real Estate Broker
----------------------------------------------------------
GRM Bay Wash, LLC, seeks authorization from the U.S. Bankruptcy
Court for the District of Maryland to employ NAI The Michael
Companies, Inc., as real estate broker.
The Debtor requires the Broker to sell the Debtor's commercial
properties located at 13401 Mid Atlantic Boulevard, Laurel,
Maryland, and at 3001 Hubbard Road, Landover, Maryland.
The Debtor agrees to pay to the Broker a sales commission amounting
to 6% of the total sales price, payable in full to Broker at
settlement, if the property or any portion is sold, or placed under
the contract of sale, during the term of the Listing Agreement, or
if the property or any of its portion is sold to anyone who was
procured or shown the property during the term of the agreement.
Daniel LaPlaca, a realtor licensed in the State of Maryland and
employed by the Broker, 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 Broker can be reached at:
Daniel LaPlaca
NAI THE MICHAEL COMPANIES, INC.
10100 Business Parkway
Lanham, MD 21740
GRM Bay Wash, LLC (Case No. 15-26725) and GRM Bay Wash of DelMarva,
LLC (Case No. 15-26727) sought Chapter 11 protection (Bankr. D.
Md.) on Dec. 1, 2015. The petition was signed by Gary R. Middleton,
managing member. GERM Bay Wash estimated both assets and debts at
$1 million to $10 million. GRM Bay Wash of DelMarva estimated
assets at $0 to $50,000 and liabilities at $500,000 to $1 million.
John Douglas Burns, Esq., at the Burns Law Firm LLC serves as the
Debtor's counsel.
HAGGEN HOLDINGS: Seeks to Hire JLT Specialty as Broker
------------------------------------------------------
HH Liquidation, LLC seeks approval from the U.S. Bankruptcy Court
for the District of Delaware to hire a broker in connection with
its insurance policies with XL Insurance America.
The company proposes to hire JLT Specialty Insurance Services Inc.
to negotiate a reduction of collateral with XL, which holds about
$8.38 million in collateral in connection with the insurance
policies.
JLT Specialty estimates a reduction of collateral in the amount of
$3.5 million.
As compensation, the firm will receive 10% of any reduced
collateral, according to court filings.
David Payne, executive vice-president and chief revenue officer for
JLT, disclosed in a court filing that the firm is a "disinterested
person" as defined in section 101(14) of the Bankruptcy Code.
The firm can be reached through:
David L. Payne
JLT Specialty Insurance Services Inc.
15th Floor
400 Park Avenue
New York, NY 10022
About Haggen Holdings
Headquartered in Bellingham, Washington, Haggen was founded in
1933 as a single grocery store. From 1933 to 2014, Haggen grew
into a
30 store family-run grocery chain, with stores located in the
northwestern United States. From 2011 to 2014, Haggen reduced its
store base to 18, including a stand-alone pharmacy location.
Haggen rapidly expanded in 2014 and 2015, and, as of the Petition
Date, Haggen owned and operated 164 stores through three operating
companies: Haggen, Inc., Haggen Opco North, LLC and Haggen Opco
South, LLC.
Haggen Holdings, LLC, and its affiliates filed Chapter 11
bankruptcy petitions (Bankr. D. Del. Case Nos. 15-11874 to
15-11879) on Sept. 8, 2015, with the intention of reorganizing, or
selling as a going concern, their stores for the benefit of their
creditors.
The petitions were signed by Blake Barnett, the chief financial
officer.
The Debtors estimated assets of $50 million to $100 million and
estimated liabilities of $10 million to $50 million.
Young, Conaway, Stargatt & Taylor, LLP, is serving as the Debtors'
local counsel. Stroock & Stroock & Lavan LLP serves as the
Debtors' general counsel. Alvarez & Marsal North America, LLC,
acts as the Debtors' financial advisor. Kurtzman Carson
Consultants LLC serves as the Debtors' claims and noticing agent.
T. Patrick Tinker, assistant U.S. Trustee for Region 3, appointed
seven creditors to the official committee of unsecured creditors.
Pachulski Stang Ziehl & Jones LLP serves as counsel to the
Committee. Giuliano, Miller & Company, LLC, serves as tax
advisors to the Committee.
* * *
Following the sale of core assets, Haggen Holdings LLC changed its
name to HH Liquidation, LLC.
HANISH LLC: Says Creditor Dispute Delayed Plan Solicitation
-----------------------------------------------------------
Hanish, LLC asks the U.S. Bankruptcy Court for the District of New
Hampshire to extend the period to obtain acceptances to its Plan of
Reorganization for approximately 90 days or until January 24,
2017.
Based upon the Petition Date, the Debtor had until Aug. 26, 2016,
to file a Plan of Reorganization. The Debtor filed a Plan during
the Exclusive Period, but the Plan is still pending confirmation.
The Debtor tells the Court that it has a major dispute with its
secured creditor, Phoenix REO, LLC. The Debtor further tells that
reason for the delay in the confirmation hearing on the Plan was
caused by the fact that Phoenix did not include its full claim
until after the Debtor filed the Plan -- filing a claim for about
$500,000 more, claiming penalties, late fees and attorney's fees
only on the eve of the Claims Bar Date on Aug. 26, 2016. The
Debtor contests these additional fees in full and has filed an
objection to Phoenix's claim.
Since the Plan is a 100% plan, this, by necessity, required the
Debtor to amend the Plan to provide full payment to Phoenix in the
event Phoenix's claim is allowed in full. This Amended Plan was
filed with the Court on October 12, 2016. The Amended Plan
increases the amount Debtor might have to pay on the Phoenix claim
if its objection is overruled.
The Court will convene on November 9, 2016 at 2:00 p.m. to consider
the Debtor's Motion to Extend the Exclusivity Period to Obtain
Acceptances for the Debtor's Plan. Objections, if any, must be
filed with the Court on or before November 2, 2016.
About Hanish, LLC
Hanish, LLC owns and operates a 59-unit Fairfield Inn & Suites by
Marriott in Hooksett, N.H. The company sought chapter 11
protection (Bankr. D. N.H. Case No. 16-10602) on Apr. 26, 2016, and
is represented by Steven M. Notinger, Esq., at Notinger Law, PLLC,
in Nashua, N.H. The petition was signed by Nayan Patel, managing
member.
Judge Bruce A. Harwood presides over the case.
The Debtor estimated its assets and debts at less than $10 million
at the time of the filing. A list of the Debtor's 20 largest
unsecured creditors is available for free at
http://bankrupt.com/misc/nhb16-10602.pdf
HELLO NEWMAN: Voluntary Chapter 11 Case Summary
-----------------------------------------------
Debtor: Hello Newman Inc.
Room 298
151 First Avenue
New York, NY 10009
Case No.: 16-12910
Chapter 11 Petition Date: October 17, 2016
Court: United States Bankruptcy Court
Southern District of New York (Manhattan)
Judge: Hon. Shelley C. Chapman
Debtor's Counsel: Bruce Weiner, Esq.
ROSENBERG, MUSSO & WEINER, LLP
26 Court Street, Suite 2211
Brooklyn, NY 11242
Tel: (718) 855-6840
Fax: (718) 625-1966
E-mail: courts@nybankruptcy.net
Total Assets: $14 million
Total Liabilities: $4.69 million
The petition was signed by Philip Hartman, secretary.
The Debtor did not include a list of its largest unsecured
creditors when it filed the petition.
HORSEHEAD HOLDING: Court Moved Plan Exclusivity Period to Nov. 28
-----------------------------------------------------------------
Judge Christopher S. Sontchi of the U.S. Bankruptcy Court for the
District of Delaware extended the periods within which Horsehead
Holding Corp., and its affiliated debtors have the exclusive right
to file a Chapter 11 plan through and including Nov. 28, 2016, and
to solicit votes thereon through and including Jan. 27, 2017.
The Troubled Company Reporter on Sept. 7, 2016, reported that the
Debtors asserted that an additional extension of the Exclusivity
Periods will ensure that they have the opportunity to remain
focused as they prepare for their Plan confirmation hearings,
providing the Debtors with adequate time to complete their
restructuring initiatives while these cases are administered as
efficiently as possible for the benefit of the Debtors'
stakeholders and other parties-in-interest.
About Horsehead Holding Corp.
Horsehead Holding Corp. is the parent company of Horsehead
Corporation, a U.S. producer of specialty zinc and zinc-based
products and a recycler of electric arc furnace dust; The
International Metals Reclamation Company, LLC, a leading recycler
of metals-bearing wastes and a leading processor of nickel-cadmium
(NiCd) batteries in North America; and Zochem Inc., a zinc oxide
producer located in Brampton, Ontario. Horsehead, headquartered in
Pittsburgh, Pa., has seven facilities throughout the U.S. and
Canada. The Debtors currently employ approximately 730 full-time
individuals.
Horsehead Holding Corp., Horsehead Corporation, Horsehead Metal
Products, LLC, The International Metals Reclamation Company, LLC,
and Zochem Inc. filed Chapter 11 bankruptcy petitions (Bankr. D.
Del. Case Nos. 16-10287 to 16-10291) on Feb. 2, 2016. The Petition
was signed by Robert D. Scherich as vice president and chief
financial officer. Judge Christopher S. Sontchi is assigned to the
case.
The Debtors have engaged Kirkland & Ellis LLP as general counsel,
Pachulski Stang Ziehl & Jones LLP as local counsel, RAS Management
Advisors, LLC, as financial advisor, Lazard Middle Market LLC as
investment banker, Epiq Bankruptcy Solutions, LLC, as claims and
noticing agent and Aird & Berlis LLP as Canadian counsel.
The Debtors disclosed total assets of $1 billion and total
liabilities of $544.6 million. As of the Petition Date, the
Debtors' consolidated long-term debt obligations totaled
approximately $420.7 million.
Andrew Vara, acting U.S. trustee for Region 3, appointed seven
creditors of Horsehead Holding Corp. to serve on the official
committee of unsecured creditors. Lowenstein Sandler LLP serves as
counsel to the Committee, while Drinker Biddle & Reath LLP serves
as co-counsel. The Unsecured Creditors Committee is represented by
Kenneth A. Rosen, Esq., Bruce Buechler, Esq., and Philip J. Gross,
Esq., at Lowenstein Sandler LLP.
The U.S. Trustee's office appointed Aquamarine Capital and six
others to serve on Horsehead Holding Corp.'s committee of equity
security holders. The Equity tapped Nastasi Partners as its
bankruptcy co-counsel; Richards, Layton & Finger P.A. as its
co-counsel; and SSG Capital Advisors, LLC as its financial advisor.
HORSEHEAD HOLDING: SSG Advised Equity Holders in Ch. 11 Case
------------------------------------------------------------
SSG Capital Advisors, LLC, acted as the investment banker and
financial advisor to the Official Committee of Equity Security
Holders ("Equity Committee") in the restructuring of Horsehead
Holding Corp. ("Horsehead" or the "Company") pursuant to a Chapter
11 Plan of Reorganization (the "Plan") in the U.S. Bankruptcy Court
for the District of Delaware (the "Court"). The Plan was confirmed
and became effective in September 2016.
Horsehead produces zinc and nickel-based products for sale
primarily throughout the U.S. and Canada. The Company is one of
the largest recyclers of electric arc furnace dust and a leading
recycler of hazardous and non-hazardous waste for the steel
industry. Horsehead operates through three distinct business
units: Horsehead Corporation and its subsidiaries, Zochem Inc. and
The International Metals Reclamation Company, LLC. Together with
its predecessors, Horsehead has operated in the zinc industry for
more than 150 years and in the nickel-bearing waste industry for
more than 30 years. Headquartered in Pittsburgh, PA, Horsehead and
its affiliates have production and/or recycling operations at seven
facilities located in five states and Canada and was a publicly
traded company listed on the NASDAQ.
The precipitous drop in zinc prices during the fourth quarter of
2015 and first quarter of 2016 coupled with constrained liquidity
brought about by startup issues at a newly constructed zinc
processing facility in Mooresboro, NC resulted in the Company
defaulting on its senior line of credit. In January 2016, a group
of hedge funds acquired a controlling interest in the Secured Notes
and Unsecured Notes, which accounted for approximately $245 million
of the Company's total outstanding debt. Due to the Company's
operational and liquidity issues, Horsehead filed for protection
under Chapter 11 of the U.S. Bankruptcy Code in February 2016 and
put forth a Plan to convert debt to equity and take the Company
private. In a highly unusual ruling, the Court appointed the
Equity Committee in May 2016 to investigate what happened to the
Company's value shortly before and after the petition date and to
determine if the Company's public shareholders were unjustly being
left with no recovery under the Plan. The Plan was subsequently
amended after the Company, the Ad Hoc Group of Senior Secured
Noteholders and the Official Committee of Unsecured Creditors
reached an agreement in early July 2016.
The Equity Committee retained SSG to provide various services to
support its investigation. These included a review and analysis of
the Company and the Plan, an enterprise valuation of the Company, a
review and analysis of valuations prepared by the Company and its
advisors, a review and analysis of restructuring and other
strategic alternatives available and expert testimony. While the
Plan as further amended was ultimately confirmed, SSG's experience
added tremendous value to the bankruptcy proceedings by challenging
the Plan and enterprise valuation and ensuring that the public
shareholders' interests were protected.
The Horsehead Chapter 11 case was widely reported in The Wall
Street Journal, industry publications and on social media. It may
serve as a benchmark for the future appointment of equity
committees in public company bankruptcy proceedings.
Other professionals who worked on the transaction include:
* Mark D. Collins, Robert J. Stearn, Jr., Russell C.
Silberglied, Robert C. Maddox, Cory D. Kandestin, Amanda R. Steele,
Andrew M. Dean and Brendan J. Schlauch of Richards, Layton &
Finger, P.A., co-counsel to the Equity Committee;
* Ancela R. Nastasi, Marshall E. Tracht and William S. Katchen
of Nastasi Partners PLLC, co-counsel to the Equity Committee;
* Ian Connor Bifferato and Thomas F. Driscoll III of The
Bifferato Firm, P.A., conflict counsel to the Equity Committee;
* Patrick J. Nash, Jr., Ryan Preston Dahl, Michael B. Slade,
Yates M. French and Angela M. Snell of Kirkland & Ellis LLP,
co-counsel to Horsehead;
* Laura Davis Jones, James E. O'Neill and Joseph Mulvihill of
Pachulski Stang Ziehl & Jones LLP, co-counsel to Horsehead;
* Andrew J. Torgove, Dermott M. O'Flanagan, Stephen K. Golmont
and Philip Kresge of Lazard Middle Market LLC, investment banker to
Horsehead;
* Timothy D. Boates, Michael J. Rizzo and Robert J. Tetreault
of RAS Management Advisors, LLC, Chief Restructuring Officer and
financial advisor to Horsehead;
* Michael S. Stamer, Meredith A. Lahaie and Sara L. Brauner of
Akin Gump Strauss Hauer & Feld LLP, co-counsel to the Ad Hoc Group
of Senior Secured Noteholders;
* William P. Bowden, Gregory A. Taylor and Karen B. Skomorucha
Owens of Ashby & Geddes, P.A., co-counsel to the Ad Hoc Group of
Senior Secured Noteholders;
* Barak M. Klein and Adam B. Waldman of Moelis & Company,
investment banker to the Ad Hoc Group of Senior Secured
Noteholders;
* Allan S. Brilliant and Craig P. Druehl of Dechert LLP,
counsel to Greywolf Capital Management LP;
* Kenneth A. Rosen, Bruce D. Buechler, Michael Savetsky and
Philip J. Gross of Lowenstein Sandler LLP, co-counsel to the
Official Committee of Unsecured Creditors;
* Howard A. Cohen, Steven K. Kortanek, Robert K. Malone and
Joseph N. Argentina, Jr. of Drinker Biddle & Reath LLP, co-counsel
to the Official Committee of Unsecured Creditors; and
* Howard N. Rosen, Samuel E. Star and Mark R. Greenberg of FTI
Consulting Inc., financial advisor to the Official Committee of
Unsecured Creditors.
About SSG Capital Advisors, LLC
SSG Capital Advisors is an independent boutique investment bank
that assists middle-market companies and their stakeholders in
completing special situation transactions. It provides its clients
with comprehensive investment banking services in the areas of
mergers and acquisitions, private placements, financial
restructurings, valuations, litigation and strategic advisory. SSG
has a proven track record of closing over 300 transactions in North
America and Europe and is a leader in the industry.
SSG Capital Advisors, LLC (Member FINRA, SIPC) is a wholly owned
broker dealer of SSG Holdings, LLC. SSG is a registered trademark
for SSG Capital Advisors, LLC. SSG provides investment banking,
restructuring advisory, merger, acquisition and divestiture
services, private placement services and valuation opinions. Past
performance is no guarantee of future results.
About Horsehead Holding Corp.
Horsehead Holding Corp. is the parent company of Horsehead
Corporation, a U.S. producer of specialty zinc and zinc-based
products and a recycler of electric arc furnace dust; The
International Metals Reclamation Company, LLC, a leading recycler
of metals-bearing wastes and a leading processor of nickel-cadmium
(NiCd) batteries in North America; and Zochem Inc., a zinc oxide
producer located in Brampton, Ontario. Horsehead, headquartered in
Pittsburgh, Pa., has seven facilities throughout the U.S. and
Canada. The Debtors currently employ approximately 730 full-time
individuals.
Horsehead Holding Corp., Horsehead Corporation, Horsehead Metal
Products, LLC, The International Metals Reclamation Company, LLC,
and Zochem Inc. filed Chapter 11 bankruptcy petitions (Bankr. D.
Del. Case Nos. 16-10287 to 16-10291) on Feb. 2, 2016. The Petition
was signed by Robert D. Scherich as vice president and chief
financial officer. Judge Christopher S. Sontchi is assigned to the
case.
The Debtors disclosed total assets of $1 billion and total
liabilities of $544.6 million. As of the Petition Date, the
Debtors' consolidated long-term debt obligations totaled
approximately $420.7 million.
The Debtors engaged Kirkland & Ellis LLP as general counsel,
Pachulski Stang Ziehl & Jones LLP as local counsel, RAS Management
Advisors, LLC, as financial advisor, Lazard Middle Market LLC as
investment banker, Epiq Bankruptcy Solutions, LLC, as claims and
noticing agent and Aird & Berlis LLP as Canadian counsel.
Andrew Vara, acting U.S. trustee for Region 3, appointed seven
creditors of Horsehead Holding Corp. to serve on the official
committee of unsecured creditors. Lowenstein Sandler LLP serves as
counsel to the Committee, while Drinker Biddle & Reath LLP serves
as co-counsel. The Unsecured Creditors Committee is represented by
Kenneth A. Rosen, Esq., Bruce Buechler, Esq., and Philip J. Gross,
Esq., at Lowenstein Sandler LLP.
The U.S. Trustee's office appointed Aquamarine Capital and six
others to serve on Horsehead Holding Corp.'s committee of equity
security holders. The Equity tapped Nastasi Partners as its
bankruptcy co-counsel; Richards, Layton & Finger P.A. as its
co-counsel; and SSG Capital Advisors, LLC as its financial advisor.
ILLINOIS POWER: Inks Restructuring Support Agreement with Dynegy
----------------------------------------------------------------
Dynegy Inc. has entered into a restructuring support agreement with
Illinois Power Generating Company (Genco) and an ad hoc group (Ad
Hoc Group) of Genco bondholders to restructure $825 million in
unsecured debt at Genco.
Key terms of the support agreement, filed separately in an 8-K,
include:
* $825 million in existing 2018, 2020 and 2032 Genco notes to be
exchanged for:
-- $210 million in new 7-year Dynegy Inc. unsecured notes
with terms and covenants consistent with existing Dynegy
Inc. unsecured bonds due 2023
-- $139 million cash consideration, including a $9 million
RSA payment discussed below, funded with existing
Illinois Power Holdings cash balances and collateral
synergies
-- 10 million Dynegy Inc. warrants with a 7-year tenor and
strike price of $35 per share
* Simultaneous solicitation of Genco noteholders to effectuate
either an out of court restructuring or a prepackaged Chapter
11 filing for Genco
* Genco to continue making interest payments on the existing
Genco notes, with interest payments after Sept. 30, 2016,
netted against the proposed cash consideration
Dynegy, Genco and the Ad Hoc Group have agreed that holders of the
Genco notes who enter into the RSA on or before Oct. 21, 2016, will
be paid their pro rata share of $9 million in cash upon
consummation of a transaction, with such pro rata share determined
as the proportion that the amount of Genco notes held by each such
holder bears to the aggregate amount of Genco notes held by all
holders entitled to receive a share of the $9 million.
If holders of 97% or more of the aggregate principal amount of
Genco notes participate in the exchange offers and the other
conditions thereto are satisfied, Dynegy intends to consummate the
restructuring out of court. If holders of less than 97% of the
aggregate principal amount of Genco notes, but a majority in number
of the holders who have voted on the restructuring plan and who
hold at least 66.7% in the aggregate amount of Genco notes vote to
accept the plan, the parties to the RSA intend to consummate the
restructuring through a prepackaged Chapter 11 filing of Genco in
the US Bankruptcy Court for the Southern District of Texas, Houston
Division.
Dynegy is represented with respect to the Genco notes restructuring
by White & Case LLP as counsel and Lazard Freres & Co. LLC as
financial advisor and the Ad Hoc Group is represented by Willkie
Farr & Gallagher LLP as counsel and Houlihan Lokey Capital, Inc. as
financial advisor.
A copy of the Restructuring Support Agreement is available for free
at https://is.gd/bmosXH
About Illinois Power
Illinois Power Generating Company is an electric generation
subsidiary of Illinois Power Resources, LLC, which is an indirect
wholly-owned subsidiary of Dynegy Inc. The Company is
headquartered in Houston, Texas and were incorporated in Illinois
in March 2000. It owns and operates a merchant generation business
in Illinois. The Company has an 80 percent ownership interest in
Electric Energy, Inc., which it consolidates for financial
reporting purposes. EEI operates merchant electric generation
facilities in Illinois and FERC-regulated transmission facilities
in Illinois and Kentucky. The Company also consolidates its
wholly-owned subsidiary, Coffeen and Western Railroad Company, for
financial reporting purposes.
Illinois Power reported a net loss of $563 million on $534 million
of revenues for the year ended Dec. 31, 2015, compared to a net
loss of $48 million on $648 million of revenues for the year ended
Dec. 31, 2014.
As of June 30, 2016, the Company had $550 million in total assets,
$986 million in total liabilities, and a total deficit of $436
million.
* * *
As reported by the TCR on June 17, 2016, S&P Global Ratings revised
its outlook on Illinois Power Generating Co. to negative from
stable. At the same time, S&P affirmed the 'CCC+' corporate credit
rating and 'CCC+' ratings on the senior unsecured debt.
As reported by the TCR on Oct. 11, 2016, Moody's Investors Service
downgraded the corporate family rating, Probability of Default
rating (PD) and senior unsecured rating of Illinois Power
Generating Company (Genco) to Ca from Caa3. The speculative grade
liquidity rating is affirmed at SGL-4. The rating outlook is
negative.
INSTITUTE OF CARDIOVASCULAR: Plan Exclusivity Extended to Nov. 16
-----------------------------------------------------------------
Judge Jerry A. Funk of the U.S. Bankruptcy Court for the Middle
District of Florida, upon the request of Institute of
Cardiovascular Excellence, PLLC, ICE Holdings, PLLC, and ICE Real
Estate Holdings, LLC, extended the Debtors' exclusive periods to
file a Plan and solicit acceptances to the Plan through November
16, 2016, and January 17, 2017, respectively.
As previously reported by the Troubled Company Reporter, the
Debtors sought an extension of their exclusive periods to file and
solicit acceptances of a Plan because of an ongoing sale process of
their assets, the result of which will have a material impact on
any plan. The Debtor also told the Court that their proposed
settlement agreement with the US Government and Florida State
Government, which was yet to be approved, will have a material
impact on the plan as well.
About Institute of Cardiovascular
Institute of Cardiovascular Excellence, PLLC, based in Ocala,
Florida, filed a Chapter 11 petition (Bankr. M.D. Fla. Case No.
16-01491) on April 20, 2016. Aaron A Wernick, Esq., at Furr &
Cohen, PA, serves as counsel to the Debtor. In its petition, the
Debtor estimated $0 to $50,000 in assets and $10 million to $50
million in liabilities. The petition was signed by Asad Qamar,
manager.
Judge Jerry A. Funk presides over the case.
No official committee of unsecured creditors has been appointed in
the case.
INTEGRATED FREIGHT: CFO Jace Simmons Resigns
--------------------------------------------
Jace Simmons, Integrated Freight Corporation's chief financial
officer, tendered his resignation from the Company on June 1, 2016,
which was accepted with immediate effect.
About Integrated Freight
Integrated Freight Corporation, formerly PlanGraphics, Inc., (OTC
BB: IFCR) -- http://www.integrated-freight.com/-- is a Sarasota,
Florida headquartered motor freight company providing long-haul,
regional and local service to its customers. The Company
specializes in dry freight, refrigerated freight and haz-waste
truckload services, operating primarily in well-established
traffic lanes in the upper mid-West, Texas, California and the
Atlantic seaboard. IFCR was formed for the purpose of acquiring
and consolidating operating motor freight companies.
Integrated Freight reported a net loss of $1.43 million on $20.2
million of revenue for the year ended March 31, 2014, compared with
net income of $4.81 million on $20.1 million of revenue for the
year ended March 31, 2013.
As of Dec. 31, 2014, the Company had $4.30 million in total assets,
$16.7 million in total liabilities, and a $12.4 million total
stockholders' deficit.
DKM Certified Public Accountants, in Clearwater, Florida, issued a
"going concern" qualification on the consolidated financial
statements for the year ended March 31, 2014, citing that the
Company has significant net losses and cash flow deficiencies.
Those conditions raise substantial doubt about the Company's
ability to continue as a going concern.
INTERPACE DIAGNOSTICS: Names James Early Chief Financial Officer
----------------------------------------------------------------
James Early was appointed as the chief financial officer of
Interpace Diagnostics Group, Inc., on Oct. 11, 2016. Mr. Early,
age 62, will serve as the Company's principal financial officer and
principal accounting officer. Since Aug. 29, 2016, the Company had
engaged Mr. Early as a consultant to perform the role of interim
chief financial officer.
Mr. Early previously served as the interim and subsequently
permanent chief financial officer of AbGenomics International Inc.,
a clinical stage drug development company with a product pipeline
in immunology and oncology, from September 2015 to July 2016. Mr.
Early also previously served as the chief financial officer of
Zebec Therapeutics, LLC (the successor to Quadrant Pharmaceuticals
LLC), a privately held specialty pharmaceutical company, from
October 2014 to September 2015. In addition, Mr. Early has
provided interim chief financial officer and business development
services for pharmaceutical, life science and other similar
companies as a sole proprietor from August 2009 to December 2013
and through Early Financial Consulting, LLC from January 2014 to
the present. Prior to his consulting role, Mr. Early was senior
vice president of Finance and Administration for Synageva
BioPharma, an orphan drug development company, from February 2006
to January 2009. Mr. Early is a Certified Public Accountant and
has an MBA in Finance and Accounting.
On Oct. 11, 2016, the Company entered into an Indemnification
Agreement with Mr. Early that is substantially the same as the
indemnification agreements entered into by the Company and its
directors and other executive officer. The Indemnification
Agreement supplements the indemnification provisions already
contained in the Company's certificate of incorporation and
generally provides that the Company will indemnify Mr. Early to the
fullest extent permitted by law, subject to certain exceptions,
against expenses, judgments, fines and other amounts incurred in
connection with his service as an executive officer. The
Indemnification Agreement also provides for rights to advancement
of expenses and contribution. The obligations of the Company under
the Indemnification Agreement continue after Mr. Early has ceased
to serve as an executive officer of the Company.
In addition, the Company entered into a Management Engagement
Letter effective Oct. 11, 2016, with Early Financial pursuant to
which Early Financial will provide Mr. Early to perform the
requisite services sufficient to enable Mr. Early to serve as the
Company's principal financial officer and principal accounting
officer on behalf of the Company as chief financial officer. Mr.
Early is the sole member of Early Financial. Under the Engagement
Letter, Early Financial will receive an hourly rate of $250 per
hour for the first 30 hours per week and $200 per hour for time in
excess of 30 hours per week, plus expenses. In general, either
party may terminate the Engagement Letter by giving 30 days written
notice to the other party. Early Financial will be entitled to all
unpaid fees and expenses in the event the Engagement Letter is
terminated. In addition, the Engagement Letter requires the
Company to indemnify Early Financial for certain losses that Early
Financial sustains with respect to its provision of services or
association with the Company and to indemnify Mr. Early with
respect to third party claims through coverage under the Company's
insurance policy covering its officers and directors.
About Interpace Diagnostics
Headquartered in Parsippany, New Jersey, Interpace Diagnostics
Group, Inc., is focused on developing and commercializing molecular
diagnostic tests principally focused on early detection of high
potential progressors to cancer and leveraging the latest
technology and personalized medicine for patient diagnosis and
management. The Company currently has four commercialized
molecular tests: PancraGen, a pancreatic cyst molecular test that
can aid in pancreatic cyst diagnosis and pancreatic cancer risk
assessment utilizing our proprietary PathFinder platform; ThyGenX,
which assesses thyroid nodules for risk of malignancy, ThyraMIR,
which assesses thyroid nodules risk of malignancy utilizing a
proprietary gene expression assay.
As of June 30, 2016, Interpace had $53.5 million in total assets,
$47.5 million in total liabilities and $5.99 million in total
stockholders' equity.
Interpace reported a net loss of $11.35 million in 2015 following a
net loss of $16.07 million in 2014.
BDO USA, LLP, in Woodbridge, New Jersey, issued a "going concern"
qualification on the consolidated financial statements for the year
ended Dec. 31, 2015, citing that the Company has suffered recurring
losses from continuing operations that raise substantial doubt
about its ability to continue as a going concern.
JESUS CARES: Plan Confirmation Hearing on Nov. 17
-------------------------------------------------
The Hon. K. Rodney May of the U.S. Bankruptcy Court for the Middle
District of Florida has conditionally approved Jesus Cares
Preschool and Early Learning Center, Inc.'s disclosure statement
dated Oct. 3, 2016, describing the Debtor's plan of
reorganization.
The Court will hold on Nov. 17, 2016, at 10:00 a.m. a hearing on
the final approval of the Disclosure Statement and the confirmation
of the Plan.
Objections to the Disclosure Statement and the confirmation of the
Plan must be filed no later than seven days prior to the
Confirmation Hearing.
Parties-in-interest must submit to the Clerk's office their
written ballot accepting or rejecting the Plan no later than eight
days before the date of the Confirmation Hearing.
The Debtor will file a ballot tabulation no later than three days
before the date of the Confirmation Hearing.
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
pursuant to Bankruptcy Code Section 330, must file motions or
applications for the allowance of the claims with the Court no
later than 14 days after the entry of the Oct. 6, 2016 court order.
Three days prior to the Confirmation Hearing, the Debtor will file
a confirmation affidavit which will contain the factual basis upon
which the Debtor relies in establishing that each of the
requirements of Bankruptcy Code Section 1129 are met.
About Jesus Cares Preschool
Jesus Cares Preschool and Early Learning Center, Inc., filed a
Chapter 11 bankruptcy petition (Bankr. M.D. Fla. Case No.
16-04943)
on June 8, 2016. The Debtor is represented by Buddy D. Ford, Esq.
The Troubled Company Reporter, on July 18, 2016, reported that the
Office of the U.S. Trustee disclosed in a court filing that no
official committee of unsecured creditors has been appointed in the
Chapter 11 case of Jesus Cares Preschool and Early Learning Center
Inc.
KAISER GYPSUM: U.S. Trustee Forms 3-Member Committee
----------------------------------------------------
The Office of the U.S. Trustee on Oct. 14 appointed three creditors
to serve on the official committee of unsecured creditors in the
Chapter 11 case of Kaiser Gypsum Company, Inc.
The committee members are:
(1) Armstrong World Industries, Inc.
Attn: Mark A. Hershey
2500 Columbia Avenue
Lancaster, PA 17603
(2) Owens Corning
Attn: Mindy Kairis
One Owens Corning Parkway
Toledo, OH 43659
(3) The Boeing Company
Attn: Steven E. Rusak
P.O. Box 3707 MC 71-XP
Seattle, WA 98124-2207
Official creditors' committees have the right to employ legal and
accounting professionals and financial advisors, at a debtor's
expense. They may investigate the debtor's business and financial
affairs. Importantly, official committees serve as fiduciaries to
the general population of creditors they represent.
About Kaiser Gypsum
Kaiser Gypsum Company, Inc. and affiliate Hanson Permanente Cement,
Inc. sought protection under Chapter 11 of the Bankruptcy Code
(Bankr. W.D. N.C. Case Nos. 16-31602 and 16-10414) on September 30,
2016. The petitions were signed by Charles E. McChesney, II,
vice-president and secretary.
The companies are represented by Rayburn Cooper & Durham P.A. and
Jones Day.
At the time of the filing, the companies estimated their assets and
liabilities at $100 million to $500 million.
Kaiser's principal business consisted of manufacturing and
marketing gypsum plaster, gypsum lath and gypsum wallboard. The
company has no current business operations other than managing its
legacy asbestos-related and environmental liabilities. The company
has no material tangible assets.
HPCI's primary business was the manufacture and sale of portland
cement products. It is a wholly-owned, indirect subsidiary of
non-debtor Lehigh Hanson, Inc.
HPCI is the direct parent of Kaiser Gypsum as well as non-debtor
Hanson Micronesia Cement, Inc. and non-debtor Hanson Permanente
Cement of Guam, Inc., the operating subsidiaries. Non-debtor
Permanente Cement Company, which has no assets or operations, is
also a wholly-owned subsidiary of HPCI.
KLEEN LAUNDRY: Plan Confirmation Hearing on Nov. 15
---------------------------------------------------
The Hon. J. Michael Deasy of the U.S. Bankruptcy Court for the
District of New Hampshire has approved Kleen Laundry and
Drycleaning Services, Inc.'s third amended disclosure statement
dated Oct. 4, 2016, describing the Debtor's third amended plan
dated Oct. 4, 2016.
A hearing on confirmation of the Plan will be held on Nov. 15,
2016, at 9:30 a.m. Objections to the confirmation of the Plan and
written acceptances or rejections of the Plan must be filed by Nov.
8, 2016.
The Troubled Company Reporter, on Oct. 10, 2016, reported that the
Debtor's second amended plan anticipates distribution of
approximately $91,941 in cash to unsecured creditors together with
additional payments over five years in the amount of $350,000 plus
interest. The total principal and interest will be $396,250 in
addition to the initial payment of $91,941 for an ultimate dividend
over five years of $488,191.00, or approximately 21%. There may
also be a distribution from proceeds of certain claims retained by
a plan trustee. The Debtor does not anticipate a material
additional dividend from those claims. The Debtor anticipates that
the dividend of $477,357 will be shared among approximately
$2,274,087 in unsecured claims for a dividend of approximately 21%
over five years starting with an initial dividend of approximately
4% on or before approximately Feb. 15, 2017. Unsecured claims of
less than $5,000 will receive one fixed dividend of 2.5%.
The TCR, on Sept. 21, 2016, reported that the Debtor's original
plan provides that Class 8 Unsecured Claims is impaired. That plan
basically creates a pot of money from the sale of the business. At
the closing, there would be $1,545,000 in cash available to be paid
to creditors of the estate. There would be $100,000 available to
unsecured creditors.
The Second Amended Disclosure Statement is available at:
http://bankrupt.com/misc/nhb16-11079-198.pdf
About Kleen Laundry
Kleen Laundry and Drycleaning Services, Inc., is a New Hampshire
corporation formed in the State of New Hampshire on June 20, 1950,
as Lebanon Laundry and Dry Cleaners, Inc. The corporate name was
changed to Kleen Laundry and Drycleaning Services, Inc. on May 16,
1967. Kleen Laundry and Drycleaning Services merged with Kleen
Linen Service, Inc., on Dec. 29, 1972, and was the surviving
entity. At the time the Chapter 11 petition was filed, the sole
shareholder of Kleen Laundry and Drycleaning Services was Kleen
LD,
LLC (formerly Kleen LLC) which in turn is solely owned by
Kleen/Envoy Services, LLC, a Delaware limited liability company.
The Debtor filed a Chapter 11 petition (Bankr. D.N.H. Case No.
16-11079) on July 25, 2016. The Debtor is represented by Richard
J. McPartlin, Esq. and Edmond J. Ford, Esq., at Ford & McPartlin,
P.A.
LAKEWOOD DEVELOPMENT: Case Summary & 11 Unsecured Creditors
-----------------------------------------------------------
Debtor: Lakewood Development Company LLC
14130 NE 169 Highway
Helena, MO 64459
Case No.: 16-50425
Chapter 11 Petition Date: October 17, 2016
Court: United States Bankruptcy Court
Western District of Missouri (St. Joseph)
Judge: Hon. Cynthia A. Norton
Debtor's Counsel: Erlene W. Krigel, Esq.
KRIGEL & KRIGEL, P.C.
4520 Main Street, Suite 700
Kansas City, MO 64111
Tel: 816-756-5800
Fax: 816-756-1999
E-mail: ekrigel@krigelandkrigel.com
Total Assets: $4.20 million
Total Liabilities: $2.42 million
The petition was signed by Jerry Alan Sigrist, managing partner.
A copy of the Debtor's list of 11 unsecured creditors is available
for free at http://bankrupt.com/misc/mowb16-50425.pdf
LIGHT TOWER: Hires Proskauer Rose as Counsel
--------------------------------------------
Light Tower Rentals, Inc. and its debtor-affiliates seek
authorization from the U.S. Bankruptcy Court for the Southern
District of Texas to employ Proskauer Rose LLP as counsel, nunc
pro tunc to the August 30, 2016 petition date.
The Debtors require Proskauer Rose to:
(a) provide legal advice with respect to the Debtors' powers
and duties as debtors in possession in the operation of
their businesses and the management of estate property;
(b) advise and consult on the conduct of these chapter 11
cases, including all of the legal and administrative
requirements of operating in chapter 11;
(c) attend meetings and negotiate with representatives of
creditors and other parties in interest;
(d) take all necessary steps to protect and preserve the
Debtors' bankruptcy estates;
(e) serve as counsel of record for the Debtors in all aspects
of these chapter 11 cases, including, without limitation,
the prosecution of actions on behalf of the Debtors, the
defense of any actions commenced against the Debtors, and
objections to claims filed against the Debtors' estates;
(f) prepare on behalf of the Debtors all necessary motions,
answers, orders, reports, and other legal papers in
connection with the administration of their bankruptcy
estates;
(g) assist in the confirmation of the Debtors' chapter 11 plan
and disclosure statement, as well as facilitating the
consummation of the chapter 11 plan;
(h) advise the Debtors regarding tax matters;
(i) represent the Debtors in connection with obtaining
authority to continue using cash collateral;
(j) advise the Debtors with respect to corporate and litigation
matters;
(k) consult with the United States Trustee for the Southern
District of Texas, any other committees appointed in these
chapter 11 cases, and all other creditors and parties in
interest concerning the administration of these chapter 11
cases; and
(l) provide representation and all other legal services
required by the Debtors in discharging their duties as
debtors in possession or otherwise in connection with these
chapter 11 cases.
Proskauer Rose will be paid at these hourly rates:
Partners $1,040-$1,300
Counsel $980-$1070
Associates $495-$930
Paraprofessionals $205-$395
Proskauer Rose will also be reimbursed for reasonable out-of-pocket
expenses incurred.
As of the petition date Proskauer Rose continues to hold
$146,874.48 of the retainer and shall either return this amount to
the Debtors or, if retained, after approval by the Court will apply
these amounts to Proskauer Rose's postpetition fees and expenses.
Philip M. Abelson, member of Proskauer Rose, assured the Court that
the firm is a "disinterested person" as the term is defined in
Section 101(14) of the Bankruptcy Code and does not represent any
interest adverse to the Debtors and their estates.
In accordance with Appendix B-Guidelines for Reviewing Applications
for Compensation and Reimbursement of Expenses Filed under 11
U.S.C. Sec. 330 for Attorneys in Larger Chapter 11 Cases, the
following is provided in response to the request for additional
information:
-- Proskauer Rose and the Debtors have not agreed to any
variations from, or alternatives to, Proskauer Rose's
standard billing arrangements for this engagement.
-- Proskauer Rose represented the Debtors as general
transactional counsel in the 12 months prepetition. Other
than annual rate increase every year on November 1,
Proskauer Rose did not vary its hourly rates during the
prepetition period and will continue to use its customary
hourly rates during the pendency of these chapter 11
cases.
-- Proskauer Rose's budget and staffing plan for the period
from August 30, 2016 through October 30, 2016 has been
provided to the Debtors for review and approval. Proskauer
Rose will notify the Office of the United States Trustee
when the Debtors have formally approved the budget and
staffing plan for this period. Proskauer Rose will develop
and review with the Debtors additional budget and staffing
plans for fee periods beyond October 2016, if necessary.
Proskauer Rose can be reached at:
Philip M. Abelson, Esq.
PROSKAUER ROSE LLP
Eleven Times Square
Eighth Avenue & 41st Street
New York, NY 10036-8299
Tel: (212) 969-4150
Fax: (212) 969-2900
About Light Tower Rentals
Light Tower Rentals, Inc. (Bankr. S.D. Tex. Case No. 16-34284), LTR
Investco, Inc. (Bankr. S.D. Tex. Case No. 16-34285), LTR Holdco,
Inc. (Bankr. S.D. Tex. Case No. 16-34286) and LTR Shelters, Inc.
(Bankr. S.D. Tex. Case No. 16-34287) sought bankruptcy protection
under Chapter 11 of the Bankruptcy Code on Aug. 30, 2016. The
petitions were signed by Kieth Muncy, chief financial officer. The
cases are assigned to Judge David R. Jones.
The Debtors and their non-debtor affiliates are a diversified
specialty equipment rental and services company focused on the oil
and gas sector. The Debtors offer a diverse portfolio of surface
rental equipment that can provide customers with a specific
product, or when combined with other products, a comprehensive
well-site rental solution. The Debtors' equipment rental fleet
includes power generation units, fluid handling equipment, light
towers, heaters, trailers and other equipment. The Debtors'
current service operations include equipment delivery and set-up,
fuel and trucking.
The Debtors are represented by Patricia B. Tomasco, Esq. at Jackson
Walker LLP, and Philip M. Abelson, Esq., at Proskauer Rose LLP. The
Debtors' financial advisor is Zolfo Cooper, LLC; and its notice &
claims agent is Prime Clerk LLC.
At the time of filing, the Debtors estimated assets and liabilities
at $100 million to $500 million.
LIGHT TOWER: Taps Zolfo Cooper as Financial Advisors
----------------------------------------------------
Light Tower Rentals, Inc. and its debtor-affiliates seek
authorization from the U.S. Bankruptcy Court for the Southern
District of Texas to employ Zolfo Cooper, LLC as bankruptcy
consultants and special financial advisors, nunc pro tunc to the
August 30, 2016 petition date.
The Debtors require Zolfo Cooper to:
(a) advise and assist management in evaluating, challenging
and preparing the Debtors' short-term weekly cash-flow
projections, including the underlying assumptions and
budget;
(b) advise and assist management regarding planning for a
chapter 11 proceeding, including the preparation of
schedules and statement of financial affairs;
(c) advise and assist management in negotiating and
implementing the Debtors' selected capital restructuring
plan with various creditors, as necessary;
(d) in conjunction with Proskauer and the Debtors' other
advisors, interface with the Debtors' creditor
constituencies, along their advisors, in explaining and
negotiating the restructuring alternatives;
(e) advise and assist management in evaluating and challenging
the Debtors' business plan, including underlying
assumptions;
(f) advise, assist management and prepare at the request of
management a liquidation analysis, and valuation analysis,
in furtherance of confirmation of a chapter 11 plan, as
necessary; and
(g) provide other services as the Debtor request and the
firm agrees to perform.
Zolfo Cooper will be paid at these hourly rates:
Managing Directors $810-$1,010
Professinal Staff $280-$810
Support Personnel $60-$275
Zolfo Cooper will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Zolfo Cooper required the Debtors to provide an initial retainer of
$150,000.
David Orlofsky, senior managing director of Zolfo Cooper, 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.
Zolfo Cooper can be reached at:
David Orlofsky
ZOLFO COOPER, LLC
1114 Avenue of the Americas, 41st Floor
New York, NY 10036
Tel: (212) 561-4022
Fax: (212) 213-1749
E-mail: dorlofsky@zolfocooper.com
About Light Tower Rentals
Light Tower Rentals, Inc. (Bankr. S.D. Tex. Case No. 16-34284), LTR
Investco, Inc. (Bankr. S.D. Tex. Case No. 16-34285), LTR Holdco,
Inc. (Bankr. S.D. Tex. Case No. 16-34286) and LTR Shelters, Inc.
(Bankr. S.D. Tex. Case No. 16-34287) sought bankruptcy protection
under Chapter 11 of the Bankruptcy Code on Aug. 30, 2016. The
petitions were signed by Kieth Muncy, chief financial officer. The
cases are assigned to Judge David R. Jones.
The Debtors and their non-debtor affiliates are a diversified
specialty equipment rental and services company focused on the oil
and gas sector. The Debtors offer a diverse portfolio of surface
rental equipment that can provide customers with a specific
product, or when combined with other products, a comprehensive
well-site rental solution. The Debtors' equipment rental fleet
includes power generation units, fluid handling equipment, light
towers, heaters, trailers and other equipment. The Debtors'
current service operations include equipment delivery and set-up,
fuel and trucking.
The Debtors are represented by Patricia B. Tomasco, Esq. at Jackson
Walker LLP, and Philip M. Abelson, Esq., at Proskauer Rose LLP. The
Debtors' financial advisor is Zolfo Cooper, LLC; and its notice &
claims agent is Prime Clerk LLC.
At the time of filing, the Debtors estimated assets and liabilities
at $100 million to $500 million.
LINCOLN MEDICAL: Seeks Emergency Approval of Cash Collateral
------------------------------------------------------------
Lincoln Medical Supply Company, LLC, filed with the U.S. Bankruptcy
Court for the District of New Jersey a motion seeking an order
authorizing it to utilize cash collateral on an emergency interim
basis, and thereafter, on a permanent basis.
The Debtor intends to finance its ongoing business operations
through the use of cash collateral to be provided by ongoing
operations. According to the Debtor, its reasons supporting its
need to use cash collateral are compelling. The Debtor sells
medical devices on credit and needs collected receivables for
business operations.
In order to avoid immediate and irreparable harm to the Debtor's
estate pending a final hearing on the Motion, the Debtor requires
the interim use of cash collateral for a six-month period within
which time the Debtor intends to file its plan.
The Court has heard this matter previously and asked the parties to
attempt to come to a consensual of understanding.
On Sept. 28, 2016, counsel for the Debtor provided a detailed
budget of the Debtor's projected monthly income and expenses and
proposed paying creditor, Key Star Financial, $2,500 per month.
Counsel for the creditor responded on Sept. 30 rejecting the offer
but not proposing any alternative.
The Debtor's attorney:
Scott H. Marcus, Esq.
LAW OFFICE OF SCOTT H. MARCUS & ASSOCIATES
121 Johnson Road
Turnersville, NJ 08012
Tel: (856) 227-0800
Fax: (856) 227-7939
About Lincoln Medical
Lincoln Medical Supply Company, LLC, a Pleasantville, New
Jersey-based seller of medical supplies, filed a Chapter 11
petition (Bankr. D.N.J. Case No. 16-24206) on July 25, 2016. The
Hon. Andrew B. Altenburg Jr. presides over the case. Scott H.
Marcus, Esq., Esq., at Scott H. Marcus & Associates, as bankruptcy
counsel. In its petition, the Debtor estimated $478,600 to
$1,470,000 in both assets and liabilities. The petition was signed
by Paul Reses, president.
LUCAS ENERGY: Files Amended Resale Prospectus with SEC
------------------------------------------------------
In December 2015, Lucas Energy, Inc., entered into an Asset
Purchase Agreement, as purchaser, with twenty-one separate sellers
(the "Sellers"). Pursuant to the Asset Purchase Agreement and
subject to the terms and conditions thereof, the Company agreed to
acquire from the Sellers, working interests in producing properties
and undeveloped acreage in Texas and Oklahoma, including varied
interests in two largely contiguous acreage blocks in the
liquids-rich Mid-Continent region of the United States, and related
wells, leases, records, equipment and agreements associated
therewith as well as producing shale properties in Glasscock
County, Texas. The closing of the Acquisition occurred on Aug. 25,
2016.
Lucas Energy filed with the Securities and Exchange Commission an
amended Form S-3 registration statement relating to the resale at
various times, by Alan Dreeben, RAD2 Minerals, Ltd, DBS
Investments, Ltd., et al., of up to 13,009,664 shares of Common
Stock, par value $0.001 per share, issued to the Sellers and their
assigns pursuant to the Acquisition.
The Company will not receive any of the proceeds from the sale of
the Shares by the Selling Stockholders.
The Company has agreed to pay certain expenses in connection with
the registration of the Shares.
The Company's common stock is listed on the NYSE MKT under the
symbol "LEI". On Oct. 12, 2016, the Company's common stock closed
at $2.03 per share.
A full-text copy of the Form S-3/A is available for free at:
https://is.gd/bodgWT
About Lucas Energy
Based in Houston, Texas, Lucas Energy (NYSE MKT: LEI) --
http://www.lucasenergy.com/-- is a growth-oriented, independent
oil and gas company engaged in the development of crude oil,
natural gas and natural gas liquids in the Hunton formation in
Central Oklahoma in addition to the Austin Chalk and Eagle Ford
formations in South Texas.
Lucas Energy reported a net loss of $25.4 million for the year
ended March 31, 2016, compared to a net loss of $5.12 million for
the year ended March 31, 2015.
As of June 30, 2016, Lucas Energy had $14.7 million in total
assets, $12.9 million in total liabilities and $1.82 million in
total stockholders' equity.
Hein & Associates LLP, in Houston, Texas, issued a "going concern"
qualification on the consolidated financial statements for the year
ended March 31, 2016, citing that the Company has incurred
significant losses from operations and had a working capital
deficit of $9.6 million at March 31, 2015. These factors raise
substantial doubt about the Company's ability to continue as a
going concern.
LYONDELL CHEMICAL: Blavatnik Faces Creditors in Trial
-----------------------------------------------------
Tiffany Kary, writing for Bloomberg News, reported that almost a
decade after the ill-fated deal that created chemical giant
LyondellBasell Industries NV, creditors headed to court to try to
recover billions of dollars that they say Len Blavatnik extracted
before the company went bankrupt.
According to the report, at a trial that began Oct. 17, 2016, in
Manhattan bankruptcy court, the creditors will seek to claw back
more than $1.7 billion from Blavatnik, his firm Access Industries
Holdings LLC and other affiliates. They're also seeking about $2
billion more from Blavatnik and other executives for alleged
mismanagement of LyondellBasell, which filed for bankruptcy in
2009, the report related.
They say money he extracted as a shareholder and through certain
fees was improperly and intentionally transferred away from the
financially precarious company, dooming it to failure, the report
further related. If the creditors can prove their case, U.S.
bankruptcy law would let them recover the funds for redistribution,
the report said.
Blavatnik, who is worth about $18.1 billion, according to data
compiled by Bloomberg, denies wrongdoing and says the suit is
premised on the notion that he should have anticipated the 2008
financial crisis.
A trust for the unsecured creditors sued in 2009, alleging that
after Blavatnik bought a 10 percent stake in Lyondell -- but before
a deal was made -- he and other executives made the company appear
more financially healthy than it was, the report added. Creditors
say they did so in order to benefit themselves through stock
holdings, the report said.
About Lyondell Chemical
Rotterdam, Netherlands-based LyondellBasell Industries is one of
the world's largest polymers,
petrochemicals and fuels companies. Luxembourg-based Basell AF
and Lyondell Chemical Company merged operations in 2007 to form
LyondellBasell Industries, the world's third largest independent
chemical company. LyondellBasell became saddled with debt as
part of the US$12.7 billion merger. Len Blavatnik's Access
Industries owned the Company prior to its bankruptcy filing.
On Jan. 6, 2009, LyondellBasell Industries' U.S. operations,
led by Lyondell Chemical Co., and one of its European holding
companies -- Basell Germany Holdings GmbH -- filed voluntary
petitions to reorganize under Chapter 11 of the U.S. Bankruptcy
Code to facilitate a restructuring of the company's debts. The
case is In re Lyondell Chemical Company, et al., Bankr. S.D.N.Y.
Lead Case No. 09-10023). Seventy-nine Lyondell entities filed
for Chapter 11. Luxembourg-based LyondellBasell Industries AF
S.C.A. and another affiliate were voluntarily added to Lyondell
Chemical's reorganization filing under Chapter 11 protection on
April 24, 2009.
Deryck A. Palmer, Esq., at Cadwalader, Wickersham & Taft LLP, in
New York, served as the Debtors' bankruptcy counsel. Evercore
Partners served as financial advisors, and Alix Partners and its
subsidiary AP Services LLC, served as restructuring advisors.
AlixPartners' Kevin M. McShea acted as the Debtors' Chief
Restructuring Officer. Clifford Chance LLP served as
restructuring advisors to the European entities.
LyondellBasell emerged from Chapter 11 bankruptcy protection in
May 2010, with a plan that provides the Company with US$3 billion
of opening liquidity. A new parent company, LyondellBasell
Industries N.V., incorporated in the Netherlands, is the
successor of the former parent company, LyondellBasell Industries
AF S.C.A., a Luxembourg company that is no longer part of
LyondellBasell. LyondellBasell Industries N.V. owns and operates
substantially the same businesses as the previous parent company,
including subsidiaries that were not involved in the bankruptcy
cases. LyondellBasell's corporate seat is Rotterdam,
Netherlands, with administrative offices in Houston and
Rotterdam.
MAJESTIC AIR: Seeks to Use Cash Collateral to Fund Expenses
-----------------------------------------------------------
Majestic Air at a hearing on Oct. 25, 2016, will ask the Bankruptcy
Court for authority to use accounts receivable and cash portion of
its Cash Collateral pursuant to a budget.
As set forth in the budget, the Debtor requires the use of some of
the cash collateral to fund its necessary operating expenses. The
Debtor says it will suffer irreparable harm if it is not authorized
to use cash collateral to fund the expenses set forth in the
Budget. Absent the authorization, the Debtor says it may not be
able to maintain and protect its business operations.
At the time of the filing, the Debtor had these assets:
A. Cash Collateral:
* $4,500 at Chase.
* $15,935 recent accounts receivable.
* $51,100 old accounts receivable which were believed to be
uncollectable.
* Debtor's inventory in the approximate sum of $35,000.
B. Assets which are not cash collateral:
* $10,403 security deposit with landlord LTP's inventory on
consignment in the approximate value of $220,000.
The Debtor has a stipulation with LTP pursuant to which the Debtor
receives 40% of the sale proceeds of LTP's parts with the balance
being deposited into a separate account. Since the filing of the
case, Majestic has been selling some of the Lufthansa inventory
pursuant to stipulation with Lufthansa. Ansett could not have had
a lien on Lufthansa's inventory as it is held by Majestic on
consignment and Majestic has no ownership interest in the
inventory.
Majestic's inventory which existed at the time of the filing of the
Chapter 11 case remains at Majestic's offices and none of it has
been sold.
The proposed budget based on recent history of the Debtor
provides:
Revenue
Gross profit $26,000
Operating Expenses
Salaries and wages $5,900
Payroll taxes 995
Repairs and maintenance 100
Rent 5,339
Taxes and licenses 200
Advertising 2,000
Accounting 100
Bank charges 310
Computer services and supplies 150
Dues and subscriptions 100
Insurance 2,000
Postage 170
Security 50
Supplies 300
Telephone 680
Freight 1,200
Utilities 325
ILS 1,200
LTP share 800
Trustee fees 163
-------
Total operating expenses 22,082
-------
$3,918
=======
The Debtor proposes to use only the accounts receivable portion and
the cash portion in its bank accounts of the Cash Collateral to
fund all necessary operating expenses of the Debtor's business.
The Debtor has been operating with the proceeds of the sale of the
LTP's inventory, from the collection of its $15,935 in accounts
receivable postpetition, sales and the cash portion existing in its
accounts at the time of the filing of the petition.
Attorneys for the Debtor:
Stella Havkin
HAVKIN & SHRAGO ATTORNEYS AT LAW
20700 Ventura Blvd. Ste. 328
Woodland Hills, CA 91364
Telephone: (818) 999-1568
Facsimile: (818) 305-6040
E-mail: stella@havkinandshrago.com
The Debtor has filed a separate motion to pay insider compensation
to its president, Tessie Cue, at a reduced salary of $2,000 per
month.
About Majestic Air
Majestic Air, Inc., is a corporation which acts as a broker of
airplane spare parts which it resells to airlines and to other
brokers in the industry.
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.
Majestic Air tapped Havkin & Shrago as its legal counsel and Miles
Carlsen of Carlsen Law Corporation as special counsel.
MARSH LAND: Seeks to Employ Patten Peterman as Ch. 11 Legal Counsel
-------------------------------------------------------------------
Marsh Land and Livestock, Inc., seeks authorization from the U.S.
Bankruptcy Court for the District of Montana to employ James A.
Patten, Esq., and Blake A. Robertson, Esq., and the law firm,
Patten, Peterman, Bekkedahl & Green, LLC, as Chapter 11 legal
counsel.
The Debtor requires Patten Peterman to counsel and represent the
Debtor before the Bankruptcy Court.
Patten Peterman professionals who will lead in the representation
of the Debtor will be paid at these hourly rates:
James A. Patten $330
Blake A. Robertson $175 - $330
Diane S. Kephart $160
April J. Boucher $125
Valerie Cox $125
Phyllis Dahl $125
Leanne Beatty $110
Patten Peterman will also be reimbursed for reasonable
out-of-pocket expenses incurred.
James A. Patten, Esq., partner at Patten Peterman, 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.
Patten Peterman can be reached at:
James A. Patten, Esq.
Blake A. Robertson, Esq.
PATTEN, PETERMAN, BEKKEDAHL & GREEN, PLLC
2817 2nd Avenue North, Ste. 300
Billings, MT 59101
Tel.: (406) 252-8500
Fax: (406) 294-9500
Email: apatten@ppbglaw.com
brobertson@ppbglaw.com
About Marsh Land and Livestock
Marsh Land and Livestock, Inc., filed a Chapter 11 petition (Bankr.
D. Mont. Case No.: 16-60999) on October 7, 2016, and is represented
by James A Patten, Esq., in Billings, Montana.
At the time of filing, the Debtor had $2.78 million in total assets
and $5.29 million in total liabilities.
The petition was signed by Todd Marsh, president.
A copy of the Debtor's list of 10 unsecured creditors is available
for free at http://bankrupt.com/misc/mtb16-60999.pdf
MCK MILLENNIUM: Wants Plan Exclusivity Extended Thru Nov. 4
-----------------------------------------------------------
MCK Millennium Centre Retail LLC asks the U.S. Bankruptcy Court for
the Northern District of Illinois for an extension of the
exclusivity and time to file its plan and disclosure statement
through and including November 4, 2016.
The Debtor relates that a stipulation and interim order authorizing
cash collateral use was entered by the Court on May 13, 2016,
pursuant to which the Debtor and the Lender MLMT 2005-MKB2
Millennium Centre Retail LLC stipulated, among other things, that
(a) the filing of a plan and disclosure statement by the Debtor
without the prior approval of the Lender would terminate the
authorization to use cash collateral, and (b) the Debtor must
either sell or refinance its real property by July 15, 2016.
The Debtor further relates that a final cash collateral order was
entered which extends the sale or refinancing deadline to October
14, 2016, and subsequently this deadline has been modified by
agreement and by order of Court, extending it through October 21,
2016 in order to accommodate the approval of refinancing of the
secured debt.
Accordingly, the Debtor needs additional time until the approval of
the proposed financing as this will determine the nature of any
plan of reorganization, and it would be impossible for the Debtor
to propose a plan with any specificity without certainty as to that
refinancing.
Attorney for the Debtor will present the Debtor's request before
the Court on Oct. 21, 2016 at 10:30 a.m.
About MCK Millennium Centre
MCK Millennium Centre Realty, LLC, filed for Chapter 11 protection
(Bankr. N.D. Ill. Case No. 16-06369) on Feb. 25, 2016, and
disclosed $16.2 million in assets and $9.50 million in liabilities
as of the Petition Date. The Debtor is represented by Jonathan D.
Golding, Esq., and Richard N. Golding, Esq., at The Golding Law
Offices, P.C. The Debtor hired Kraft Law Office as its special
real estate counsel. Lender MLMT 2005 MKB2 Millennium Centre
Retail LLC is represented by Leslie A. Bayles, Esq., and Donald A.
Cole, Esq., at Bryan Cave LLP.
MICHAEL D. COHEN: Court Enters Final Order Approving Cash Use
-------------------------------------------------------------
Judge David E. Rice entered a final order that authorizes Michael
D. Cohen, M.D., P.A., and Michael Cohen and Shari Cohen to use cash
collateral until Nov. 18, 2016, or later if the lenders consent to
an extension.
Following a hearing on Sept. 15, 2016, the Court on Sept. 16
granted interim approval of the Motion and overruled the objection
of creditor Dawn Richardson, after considering the Motion, the
testimony of Shari L. Cohen, and arguments of counsel; and the
Debtor's proposed modification at the interim hearing to its
interim budget to limit compensation to be paid to Dr. Michael D.
Cohen during the interim period.
Upon consideration of the limited objection of Manufacturers and
Traders Trust Company, and the resolution of the M&T Limited
objection by agreement of the Debtor and M&T Bank, and the evidence
and arguments of counsel present at the hearing held for final
approval of the Motion on Oct. 6, 2016, the Court entered a Final
Order.
"The Debtor is hereby authorized to use Cash Collateral to (a)
maintain and preserve its assets, and (b) continue operation of its
business, in accordance with the Revised Budget attached hereto as
Exhibit A, through November 18, 2016. . . Variances in specific
amounts of projected disbursements for any four-week period may
vary up to ten percent (10 %) without the consent of PNC Bank and
M&T Bank (the "Banks"), but variances in any such four-week
disbursements of more than 10 % will be subject to approval of the
Banks," Judge Rice said in his Oct. 6 order.
"The compensation to be paid to Dr. Cohen will not exceed the
amount paid to Dr. Cohen on a biweekly basis during the 90-day
period prior to the Petition Date, without further Order of the
Court permitting any such increase after due notice and hearing."
As adequate protection for the use of Cash Collateral, PNC Bank and
M&T Bank are granted:
(a) Valid, binding, enforceable, and perfected replacement liens
under 11 U.S.C. Sec. 361(2) in all assets of the Debtor (including,
without limitation, bank accounts and receivables) which are or
have been acquired, generated or received by the Debtor subsequent
to the Petition Date, and the proceeds of same, only to the extent
such prepetition liens are valid; and (iii) with the same priority
in the postpetition collateral and proceeds thereof of the Debtor
that PNC Bank and M&T Bank held in the prepetition collateral;
(b) Payments as set forth in the Revised Budget; provided,
however, that payments designated in the Revised Budget to be made
to PNC Bank will be paid to Tydings & Rosenberg LLP and held in
escrow for disbursement to either M&T Bank or PNC Bank only upon
written consent of both M&T Bank and PNC Bank, or in the absence of
such consent, further Order of the Court; and
(c) A superpriority claim pursuant to 11 U.S.C. Sec. 507(b)
limited to the extent of the diminution of PNC Bank and/or M&T
Bank's interest in Cash Collateral (taking into account payments
made to each such secured creditor) as a result of the Debtor's use
of Cash Collateral or imposition of the automatic stay.
The Debtor's authority to use Cash Collateral will expire on Nov.
18, 2016; provided, however, that the Expiration Date may be
extended by entry of a Stipulation consented to by PNC Bank and M&T
Bank, with any such Stipulation subject to a subsequent written
objection filed and served within seven days after filing of any
such Stipulation.
A copy of the Final Order, along with the Budget, is available for
free at:
http://bankrupt.com/misc/mdb16-22231_Cash_Ord_Cohen.pdf
About Michael D. Cohen, M.D.
Based in Maryland, Michael D. Cohen, M.D., P.A. d/b/a Cosmetic
Surgery Center of Maryland d/b/a Belcara Health, d/b/a Belcara, is
a professional corporation engaged in the business of providing
various physician services to its patients, including but not
limited to services in the areas of plastic surgery, dermatology,
and podiatry. Michael D. Cohen, M.D., is the sole shareholder of
the Debtor. Shari L. Cohen, Dr. Cohen's wife, is responsible for
the business administration of the Debtor's medical practice.
Michael D. Cohen, M.D. and his wife, Shari L. Cohen jointly filed a
joint Chapter 11 petition (Bankr. D. Md. Case No. 16-21513) on Aug.
26, 2016.
The Company filed a voluntary petition under Chapter 11 of the
Bankruptcy Code (Bankr. D. Md. Case No. 16-22231) on Sept. 12,
2016. The Debtor estimated assets in the range of $100,000 to
$500,000 and liabilities in the range of $1 million to $10 million
as of the bankruptcy filing.
The Company is represented by Irving Edward Walker, Esq., at Cole
Schotz P.C.
The Cohens are represented by Yumkas, Vidmar, Sweeney & Mulrenin,
LLC.
MIMM CONDOMINIUM: Taps Omar Arcia as Special Counsel
----------------------------------------------------
MIMM Condominium Association seeks authorization from the U.S.
Bankruptcy Court for the Southern District of Florida to employ
Omar J. Arcia, Esq., and the law firm Arcia Law Firm, P.L., as
Special Counsel, nunc pro tunc to the September 7, 2016 petition
date.
The Debtor requires the Firm to provide legal services consisting
of the investigation and prosecution of claims which the Debtor has
or should have against recalcitrant owners and tenants who have not
paid -- without limitation -- their condominium dues and then
foreclosing on the same.
The Firm will be paid at an hourly rate of $575.00.
The salient terms of the Firm's retention are the payments of a
nonrefundable retainer of $15,000 upon approval by the Court, and
then a "Results Accomplished Fee" of another $15,000 upon
completion of the assignment.
Omar J. Arcia, Esq., managing partner of the Firm, assured the
Court that the firm is a "disinterested person" as the term is
defined in Section 101(14) of the Bankruptcy Code and does not
represent any interest adverse to the Debtors and their estates.
The Firm can be reached at:
Omar J. Arcia, Esq.
ARCIA LAW FIRM, P.L.
Huntington Square III
3350 S.W. 148th Avenue, Suite 100
Miramar, FL 33027
Tel: 954-437-9066
Email: Oarcia@Arcialawfirm.com
About MIMM Condominium Association
MIMM Condominium Association, Inc., filed a chapter 11 petition
(Bankr. S.D. Fla. Case No. 16-22347) on Sept. 7, 2016. The
petition was signed by Serdar Bozkurt, director. The Debtor is
represented by David R. Softness, Esq., at David R. Softness, P.A.
The case is assigned to Jay A. Cristol. The Debtor estimated assets
at $0 to $50,000 and liabilities at $1 million to $10 million at
the time of the filing.
MIMM CONDOMINIUM: U.S. Trustee Unable to Appoint Committee
----------------------------------------------------------
The Office of the U.S. Trustee on Oct. 14 disclosed in a court
filing that no official committee of unsecured creditors has been
appointed in the Chapter 11 case of MIMM Condominium Association,
Inc.
MIMM Condominium Association, Inc. filed a chapter 11 petition
(Bankr. S.D. Fla. Case No. 16-22347) on Sept. 7, 2016. The
petition was signed by Serdar Bozkurt, director. The Debtor is
represented by David R. Softness, Esq., at David R. Softness, P.A.
The case is assigned to Jay A. Cristol. The Debtor estimated
assets at $0 to $50,000 and liabilities at $1 million to $10
million at the time of the filing.
MS ELMSFORD: Wants Plan Filing Period Extended to March 7
---------------------------------------------------------
MS Elmsford Snack Mart, Inc. asks the U.S. Bankruptcy Court of the
Southern District of New York to extend until March 7, 2017, its
exclusive period within which to file a Chapter 11 Plan and solicit
acceptances to the Plan.
The Debtor relates that it currently has until November 23, 2016 to
file a Chapter 11 plan and solicit acceptances and to confirm its
plan.
The Debtor contends that it was in the business of operating a
gasoline station and convenience store at 58 N. Saw Mill River
Road, Elmsford, New York. The Debtor further contends that it
entered into a commission agreement lease and retail facility lease
with New York Fuel Distributors, LLC, also known as NYFD.
The Debtor tells the Court that NYFD had acquired the Property when
it purchased a number of assets from an entity known as Motiva
Enterprises LLC. The Debtor further tells the Court that the
Property required substantial renovation in order to make the gas
station and convenience store viable and it was agreed by and
between NYFD and Debtor that Debtor would make the expenditures
necessary to keep the gas station operating until construction
commenced.
The Debtor relates that once NYFD completed construction on the
Property and it was ready to reopen, it contracted with a different
operator to run the facility in contravention of the agreement by
and between Debtor and NYFD. The Debtor further contends that it
has approximately $177,744 of operating losses during the period it
operated the Property for NYFD and may have more damages based upon
being wrongfully terminated.
The Debtor's goal is to settle its debts with NYFD and re-obtain
operation control of the Station. The Debtor expects that it will
propose a 100% Plan with no impaired classes to be consummated
through the use of profits or from the contribution of Musa
ElJamal. The Debtor contends that should it re-obtain control of
the gas station and convenience store located on the Property, a
plan could easily be confirmed.
The Debtor's Motion is scheduled for hearing on November 4, 2016 at
10:00 a.m.
About MS Elmsford Snack Mart, Inc.
MS Elmsford Snack Mart Inc. filed a chapter 11 petition (Bankr.
S.D.N.Y. Case No. 16-22106) on January 28, 2016. The petition was
signed by Musa ElJamal, vice president. The Debtor is represented
by H. Bruce Bronson, Jr., Esq., at Bronson Law Offices, P.C. The
Debtor estimated assets at $100,001 to $500,000 and liabilities at
$100,001 to $500,000 at the time of the filing.
MS SCARSDALE: Seeks March 7 Exclusive Plan Filing Extension
-----------------------------------------------------------
MS Scarsdale Snack Mart, Inc. asks the U.S. Bankruptcy Court for
the Southern District of New York to extend until March 7, 2017,
its exclusive period to file a Chapter 11 Plan and solicit
acceptances to the Plan.
The Debtor relates that it was in the business of operating a
gasoline station and convenience store at 1000 Central Park Avenue,
Scarsdale, New York. The Debtor further relates that New York Fuel
Distributors, LLC, also known as NYFD, had acquired the Property
when it purchased a number of assets from an entity known as Motiva
Enterprises LLC.
The Debtor contends that the Property required substantial
renovation in order to make the gas station and convenience store
viable and it was agreed by and between NYFD and Debtor that Debtor
would make the expenditures necessary to keep the gas station
operating until construction commenced. The Debtor further
contended that it expended approximately $119,928.05 towards making
the Station functional including constructing and expanding the
convenience store, adding two more gasoline dispensers and a canopy
over the gasoline dispensers.
The Debtor relates that upon completion of the renovations, NYFD
made a series of demands for substantially higher rent and the
Property was not turned over to Debtor for operation; rather NYFD
announced its intention to have another operator open and operate
the Property. Debtor believes it is entitle to reimbursement for
the renovations under a number of legal theories including, but not
limited to, wrongful termination, unjust enrichment, bad faith and
breach of contract.
The Debtor's goal is to settle its debts with NYFD and re-obtain
operation control of the Station. The Debtor expects that it will
propose a 100% Plan with no impaired classes to be consummated
through the use of profits or from the contribution of Musa
ElJamal.
The Debtor tells the Court that a plan could be easily formed
should it be able to re-obtain control of the gas station and
convenience store located on the Property.
A hearing on the Debtor's Motion is scheduled for November 4, 2016
at 10:00 a.m.
About MS Scarsdale Snack Mart, Inc.
MS Scarsdale Snack Mart, Inc. filed a chapter 11 petition (Bankr.
S.D.N.Y. Case No. 16-22043) on January 11, 2016. The petition was
signed by Musa ElJamal, vice president. The Debtor is represented
by H. Bruce Bronson, Jr., Esq., at Bronson Law Offices, P.C. The
Debtor estimated assets and liabilities at $100,001 to $500,000 at
the time of the filing.
NEW PHOENIX: Court Allows Cash Collateral Use on Interim Basis
--------------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Texas
authorized New Phoenix Metals, Ltd., to use the cash collateral of
Branch Banking & Trust Co. on an interim basis.
The Debtor contended that its ability to use cash collateral is
vital to the confidence of its vendors and suppliers of goods and
services, to the customers and to the preservation and maintenance
of the going concern value of the Debtors' estate.
The approved Budget covered the months of October 2016 and November
2016. The Budget provided for total Operating Expenses in the
amount of $359,000 for October 2016 and $375,400 for November 2016.
The Budget also provided for total reorganization expenses in the
amount of $75,000 for October 2016 and $80,500 for November 2016.
Secured Lenders Branch Banking & Trust and BB&T Equipment Finance
Corporation were granted valid, binding, enforceable and perfected
liens co-extensive with their prepetition liens in all currently
owned or after-acquired property and assets of the Debtor.
Branch Banking & Trust was granted replacement liens and security
interests, co-extensive with its prepetition liens.
The Debtor was directed to make monthly adequate protection
payments to Branch Banking & Trust and BB&T Equipment Finance
Corporation in the amount of $45,000 plus all net monthly income up
to a total payment of $54,449.
The final hearing on the Debtor's use of cash collateral is
scheduled on Nov. 2, 2016, at 9:30 a.m. The deadline for the
filing of objections to the Debtor's motion is set on Oct. 26, 2016
at 4:00 p.m.
A full-text copy of the Interim Order, dated Oct. 14, 2016, is
available at
http://bankrupt.com/misc/NewPhoenix2016_1632075sgj11_143.pdf
About New Phoenix Metals
Established in 1998, New Phoenix Metals, Ltd., is a residential and
industrial recycling company. The industrial division services
companies in a four-state region (Oklahoma, Texas, Arkansas, and
Louisiana) and its facility in Greenville, Texas, serves the public
and small scrap dealers of Northeast Texas and Southern Oklahoma.
New Phoenix Metals is a full-service industrial recycling company
located in Greenville, Texas (40 miles Northeast of Dallas). New
Phoenix Metals also has a residential division for recycling
household scrap metals including aluminum, steel, copper and
brass.
The Debtor sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. N.D. Tex. Case No. 16-32075) on May 26, 2016. The
petition was signed by Marcus D. Carl, partner.
The case is assigned to Judge Stacey G. Jernigan.
At the time of the filing, the Debtor estimated its assets and
liabilities at $1 million to $10 million.
NGL ENERGY: Moody's Assigns B2 Rating on Proposed $400MM Notes
--------------------------------------------------------------
Moody's Investors Service assigned a B2 rating to NGL Energy
Partners LP's (NGLEP) proposed offering of $400 million senior
unsecured notes due 2023. NGLEP's other ratings and negative
outlook remained unchanged.
The note proceeds will be used to reduce outstanding borrowings
under the partnership's revolving credit facility.
Assignments:
Issuer: NGL Energy Partners LP
Senior Unsecured Regular Bond/Debenture due 2023, Assigned B2
(LGD5)
RATINGS RATIONALE
The new notes will rank pari passu with NGLEP's existing senior
notes, and were assigned the same B2 rating. The unsecured notes
are rated two notches below the Ba3 CFR under Moody's Loss Given
Default Methodology because of the large proportion of secured debt
in NGLEP's capital structure. NGLEP has roughly $2.48 billion of
secured credit facilities plus $250 million of secured notes that
have an all-asset pledge and a priority claim over the unsecured
notes.
The Ba3 CFR reflects NGLEP's high financial leverage, weak
operating environment, exposure to weather, volume, price and basis
risks, and highly acquisitive nature. The rating also reflects the
generally low barriers to entry for most of its service-oriented
businesses and the challenged energy industry landscape that will
likely restrain volume and margin growth through 2017. The Ba3 CFR
is supported by NGLEP's increasing scale, diversified and somewhat
vertically integrated operations across several key US oil and gas
basins that reduce cash flow volatility; a high proportion of
fee-based cash flows from its water solutions, terminals/storage,
and logistics businesses; and a seasoned management team with
significant equity ownership. The company continues to improve its
business risk profile by focusing on increasing the proportion of
fee based revenues under medium and long term contracts.
The partnership should have adequate liquidity through mid-2017,
which is captured in the SGL-3 rating. Moody's estimates that the
partnership will generate limited negative free cash flow in fiscal
2017 (ending March 31) based on its reduced distributions and
growth capex. The partnership has a $1.03 billion revolving
working capital facility and a $1.45 billion revolving acquisition
facility, both of which were substantially drawn as of June 30,
2016 (leaving ~$584 million combined availability). This note
offering will help reduce revolver borrowings and free up
liquidity.
The negative outlook reflects NGLEP's high financial leverage and
weak operating environment. The CFR could be downgraded if the
debt/EBITDA ratio does not continue to decline and approach 5x in
2017. An upgrade could be considered if NGLEP can reduce leverage
below 4x while maintaining a distribution coverage ratio of at
least 1.2x. A higher proportion of fee-based cash flows generated
under long term contracts would also be required for an upgrade.
The principal methodology used in this rating was Global Midstream
Energy published in December 2010.
Headquartered in Tulsa, Oklahoma, NGL Energy Partners LP is a
publicly traded Master Limited Partnership with diversified
midstream assets in several active oil and gas basins in North
America.
NJOY INC: Committee Hires Fox Rothschild as Counsel
---------------------------------------------------
The Official Committee of Unsecured Creditors seeks authorization
from the U.S. Bankruptcy Court for the District of Delaware to
retain Fox Rothschild LLP as counsel, nunc pro tunc to September
27, 2016.
The Committee requires Fox Rothschild to:
(a) provide legal advice with respect to the Committee's
powers and duties as appointed under Bankruptcy Code section 1102;
(b) assist in the investigation of the acts, conduct, assets,
liabilities and financial condition of the Debtor, the operation of
the Debtor's businesses, and any other matter relevant to this case
or to the formulation of a plan or plans of reorganization or
liquidation;
(c) prepare on behalf of the Committee necessary motions,
applications, answers, orders, reports and other legal papers;
(d) review, analyze and respond to pleadings filed in the case
and appearing before the Court to present necessary motions,
applications and pleadings and to otherwise protect the Committee's
interests;
(e) represent the Committee in hearings and other judicial
proceedings;
(f) advise the Committee and its other professionals on
practice and procedure in the Bankruptcy Court for the District of
Delaware; and,
(g) perform any and all other legal services in connection
with the chapter 11 case as may reasonably be required.
Fox Rothschild will be paid at these hourly rates:
Partners $350 - $900
Associates $210 - $510
Paraprofessionals $210 - $385
Fox Rothschild professionals who will take a lead in the firm's
representation of the Committee will be paid the following hourly
rates:
Michael A. Sweet, Esq. $595.00
Martha B. Chovanes, Esq. $590.00
L. John Bird, Esq. $400.00
Robin I. Solomon $360.00
Fox Rothschild will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Michael A. Sweet, partner at Fox Rothschild, 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.
Fox Rothschild can be reached at:
Michael A. Sweet, Esq.
Martha B. Chovanes, Esq.
L. John Bird, Esq.
FOX ROTHSCHILD LLP
919 North Market Street, Suite 300
Wilmington, DE, 19801
Email: msweet@foxrothschild.com
mchovanes@foxrothschild.com
lbird@foxrothschild.com
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.
NORTEL NETWORKS: Canadian Unit Executes Global Support Agreement
----------------------------------------------------------------
Nortel Networks Corporation ("NNC") and Nortel Networks Limited
("NNL" and together with NNC and certain of their Canadian
affiliates subject to proceedings under Canada's Companies'
Creditors Arrangement Act ("CCAA"), "Nortel Canada") on Oct. 12,
2016, disclosed that they had entered into a Settlement and Plans
Support Agreement (the "Global Settlement and Support Agreement")
with Nortel Networks Inc. ("NNI"), Nortel Networks UK Limited,
certain other global Nortel entities and various significant
creditor constituents of the Nortel entities. Subject to its
effectiveness, the Global Settlement and Support Agreement provides
for a resolution of the allocation dispute regarding the
approximately U.S.$7.3 billion of sale proceeds currently held in
escrow as well as various other claims, disputes and matters among
the parties thereto. Pursuant to the Global Settlement and Support
Agreement, Nortel Canada will receive 57.1065% of the sale proceeds
in escrow, being approximately U.S.$4.143 billion as at July 31,
2016. The Global Settlement and Support Agreement also provides
for, among other things, the release to Nortel Canada of
approximately U.S.$237 million of other sale proceeds plus a
further amount of sale proceeds relating to the transfer of I.P.
addresses by Nortel Canada currently held subject to various court
orders, as well as payment to Nortel Canada of U.S.$35 million on
account of reimbursement of various costs incurred in connection
with the asset sales.
The effectiveness of the Global Settlement and Support Agreement is
subject to certain conditions, including the sanction and
effectiveness of a plan of arrangement under the CCAA to be
presented to creditors of Nortel Canada, confirmation and
effectiveness of plans of reorganization to be presented to
creditors of NNI and its affiliated debtors in proceedings pending
under chapter 11 of the United States Bankruptcy Code, and
approvals being granted by courts in the United Kingdom and
France.
Ernst & Young Inc., the court-appointed monitor (the "Monitor") in
the CCAA proceedings of Nortel Canada, is a party to the Global
Settlement and Support Agreement and supportive of the settlements
and other agreements contained therein. The participants in the ad
hoc committee of creditors having claims only against Nortel
Canada, comprised of the former and disabled Canadian employees of
Nortel Canada through their court-appointed representatives,
Unifor, Morneau Shepell Ltd. as administrator of Nortel's Canadian
registered pension plans, the Superintendent of Financial Services
of Ontario as administrator of the pension benefits guarantee fund
(Ontario) and the court-appointed representatives of the current
and transferred employees of Nortel Canada are also party to the
Global Settlement and Support Agreement.
The Global Settlement and Support Agreement was subject to
conditions regarding holders of certain bonds issued and/or
guaranteed by NNC, NNL, NNI or Nortel Networks Capital Corporation
delivering joinders to the Global Settlement and Support Agreement,
which conditions have been satisfied. Subject to the satisfaction
or waiver of the various other conditions specified in the Global
Settlement and Support Agreement, Nortel Canada expects the Global
Settlement and Support Agreement to become fully effective and to
receive funds pursuant thereto in the first quarter of 2017.
Nortel Canada expects to use the vast majority of funds received
pursuant to the Global Settlement and Support Agreement to make
distributions to creditors pursuant to the plan of arrangement to
be presented, which distributions, subject to creditor and court
approval and implementation of the plan, are expected to be made in
the first or second quarter of 2017.
As previously announced, Nortel Canada does not believe that equity
holders of NNC or NNL will receive any value for their shares in
the CCAA proceedings.
A copy of the Global Settlement and Support Agreement is available
on the Monitor's Web site at http://www.ey.com/ca/nortel
About Nortel Networks
Headquartered in Ontario, Canada, Nortel Networks Corporation and
its various affiliated entities provided next-generation
technologies, for both service provider and enterprise networks,
support multimedia and business-critical applications. Nortel did
Networks Limited was the principal direct operating subsidiary of
Nortel Networks Corporation.
On Jan. 14, 2009, Nortel Networks Inc.'s ultimate corporate parent
Nortel Networks Corporation, NNI's direct corporate parent Nortel
Networks Limited and certain of their Canadian affiliates commenced
a proceeding with the Ontario Superior Court of Justice under the
Companies' Creditors Arrangement Act (Canada) seeking relief from
their creditors. Ernst & Young was appointed to serve as monitor
and foreign representative of the Canadian Nortel Group. That same
day, the Monitor sought recognition of the CCAA Proceedings in U.S.
Bankruptcy Court (Bankr. D. Del. Case No. 09-10164) under Chapter
15 of the U.S. Bankruptcy Code.
That same day, NNI and certain of its affiliated U.S. entities
filed voluntary petitions for relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Del. Case No. 09-10138).
In addition, the High Court of England and Wales placed 19 of NNI's
European affiliates into administration under the control of
individuals from Ernst & Young LLP. Other Nortel affiliates have
commenced and in the future may commence additional creditor
protection, insolvency and dissolution proceedings around the
world.
On May 28, 2009, at the request of administrators, the Commercial
Court of Versailles, France, ordered the commencement of secondary
proceedings in respect of Nortel Networks S.A. On June 8, 2009,
Nortel Networks UK Limited filed petitions in U.S. Bankruptcy Court
for recognition of the English Proceedings as foreign main
proceedings under Chapter 15.
U.S. Bankruptcy Judge Kevin Gross presides over the Chapter 11 and
15 cases. Mary Caloway, Esq., and Peter James Duhig, Esq., at
Buchanan Ingersoll & Rooney PC, in Wilmington, Delaware, serves as
Chapter 15 petitioner's counsel.
In the Chapter 11 case, James L. Bromley, Esq., and Howard S.
Zelbo, Esq., at Cleary Gottlieb Steen & Hamilton, LLP, in New York,
serve as the U.S. Debtors' general bankruptcy counsel; Derek C.
Abbott, Esq., at Morris Nichols Arsht & Tunnell LLP, in
Wilmington, serves as Delaware counsel. The Chapter 11 Debtors'
other professionals are Lazard Freres & Co. LLC as financial
advisors; and Epiq Bankruptcy Solutions LLC as claims and notice
agent.
The U.S. Trustee appointed an Official Committee of Unsecured
Creditors in respect of the U.S. Debtors.
An ad hoc group of bondholders also was organized. An Official
Committee of Retired Employees and the Official Committee of
Long-Term Disability Participants tapped Alvarez & Marsal
Healthcare Industry Group as financial advisor. The Retiree
Committee is represented by McCarter & English LLP as Delaware
counsel, and Togut Segal & Segal serves as the Retiree Committee.
The Committee retained Alvarez & Marsal Healthcare Industry Group
as financial advisor, and Kurtzman Carson Consultants LLC as its
communications agent.
Several entities, particularly, Nortel Government Solutions
Incorporated and Nortel Networks (CALA) Inc., have material
operations and are not part of the bankruptcy proceedings.
As of Sept. 30, 2008, Nortel Networks Corp. reported consolidated
assets of $11.6 billion and consolidated liabilities of $11.8
billion. The Nortel Companies' U.S. businesses are primarily
conducted through Nortel Networks Inc., which is the parent of
majority of the U.S. Nortel Companies. As of Sept. 30, 2008, NNI
had assets of about $9 billion and liabilities of $3.2 billion,
which do not include NNI's guarantee of some or all of the Nortel
Companies' about $4.2 billion of unsecured public debt.
Since the commencement of the various insolvency proceedings,
Nortel has sold its business units and other assets to various
purchasers. Nortel has collected roughly $9 billion for
distribution to creditors. Of the total, $4.5 billion came from
the sale of Nortel's patent portfolio to Rockstar Bidco, a
consortium consisting of Apple Inc., EMC Corporation,
Telefonaktiebolaget LM Ericsson, Microsoft Corp., Research In
Motion Limited, and Sony Corporation. The consortium defeated a
$900 million stalking horse bid by Google Inc. at an auction. The
deal closed in July 2011.
Nortel has filed a proposed plan of liquidation in the U.S.
Bankruptcy Court. The Plan generally provides for full payment on
secured claims with other distributions going in accordance with
the priorities in bankruptcy law.
The trial on how to divide proceeds among creditors in the U.S.,
Canada, and Europe commenced on Sept. 22, 2014. The question of
how to divide $7.3 billion raised in the international bankruptcy
of Nortel Networks Corp. was answered on May 12, 2015, by two
judges, one in the U.S. and one in Canada.
According to The Wall Street Journal, Justice Frank Newbould of the
Ontario Superior Court of Justice in Toronto and Judge Kevin Gross
of the U.S. Bankruptcy Court in Wilmington, Del., agreed on the
outcome: a modified pro rata split of the money.
NUTROGANICS INC: Files Chapter 7 Bankruptcy on Lack of Capital
--------------------------------------------------------------
Nutroganics, Inc., on Oct. 17, 2016, disclosed that, as a result of
financial pressure caused by previously disclosed problems at its
subsidiary NuStar Manufacturing, LLC, the lack of working capital
at its subsidiary Silverbow Honey Company, Inc., and the lack of
financing available to bridge the companies to profitability, the
companies have filed for bankruptcy under Chapter 7 of the
Bankruptcy Code (Bankr. D. Del. Case Nos. 16-12271, 16-12272, and
16-12273), with the hope that the chapter 7 trustee will be able to
recover as much money as possible for the companies' stakeholders
over the coming months.
The bankruptcy cases were filed in Delaware, the state of
incorporation of Nutroganics.
About Nutroganics
Nutroganics (otc pink:NUTT) previously acquired revenue-generating
businesses operating in the healthy lifestyle marketplace.
Nutroganics owns Silverbow Honey Company, a producer and packager
of honey products founded in 1945 and based in Moses Lake,
Washington and NuStar Manufacturing, LLC, a Utah based packager of
nutritional products and supplements.
NUVIRA HOSPITALITY: Plan Confirmation Hearing on Nov. 8
-------------------------------------------------------
The Hon. Letitia Z. Paul of the U.S. Bankruptcy Court for the
Southern District of Texas has conditionally approved Nuvira
Hospitality Inc.'s secon amended disclosure statement dated Oct. 4,
2016, with respect to the Debtor's first amended plan of
reorganization dated Oct. 3, 2016.
The hearing on the final approval of the Second Amended Disclosure
Statement and confirmation of the First Amended Plan will be held
on Nov. 8, 2016, at 10:00 a.m. Objections to the Second Amended
Disclosure Statement must be filed by Oct. 25, 2016.
Written acceptances or rejections of the First Amended Plan must be
filed by Nov. 1, 2016.
The Troubled Company Reporter, on Oct. 11, 2016, reported that
Nuvira's first amended disclosure statement, which proposes that
Class 4 General Non-Insider Unsecured Class -- which include Rohit
Kumar, who has an unsecured claim in the amount of $6,800 -- are
impaired under the Plan and be paid their allowed claims in full,
without interest, over 18 months. Monthly payments equal to 1/18
of the allowed claims will commence on the Effective Date and
continue on the same day of the month each month until the allowed
Class 4 Claims are paid in full. Mr. Kumar will be paid $377.78
per month for 18 months.
The TCR, on Oct. 6, 2016, also reported that the Debtor's original
small business Chapter 11 plan, which proposes that general
non-insider unsecured creditors, classified in Class 4, will
receive a distribution of 100% of their allowed claims, to be paid
in monthly installments over 18 months.
The Amended Disclosure Statement is available at:
http://bankrupt.com/misc/txsb15-80432-48.pdf
Nuvira Hospitality Inc., owner and operator of the Anchor Motel,
filed a Chapter 11 petition (Bankr. S.D. Tex. Case No. 15-80432) on
Nov. 30, 2015, and is represented by H Miles Cohn, Esq., at
Crain, Caton & James, PC.
OLIVER C&I: Case Summary & 11 Unsecured Creditors
-------------------------------------------------
Debtor: Oliver C & I Corp.
Amelia Industrial Park
Calle Diana #30, Local 6A
Guaynabo, PR 00968
Case No.: 16-08311
Chapter 11 Petition Date: October 17, 2016
Court: United States Bankruptcy Court
District of Puerto Rico (Old San Juan)
Judge: Hon. Mildred Caban Flores
Debtor's Counsel: Carmen D Conde Torres, Esq.
C. CONDE & ASSOC.
254 San Jose Street, 5th Floor
San Juan, PR 00901-1523
Tel: 787-729-2900
Fax: 787-729-2203
E-mail: condecarmen@condelaw.com
Total Assets: $29.94 million
Total Debts: $1.06 million
The petition was signed by Max Olivera, vice-president/treasurer.
Debtor's List of 11 Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Departamento De Hacienda Income Tax $316,004
PO Box 9024140 Return (2013)
San Juan, PR
00902-4140
Departamento De Hacienda Income Tax $243,997
PO Box 9024140 Return (2015)
San Juan, PR
00902-4140
Memorial Capital Partners, LLC $238,903
Departamento De Hacienda Income Tax $233,050
Return (2014)
Departamento De Hacienda Income Tax $36,841
Return (2011)
Citibank Leading Bank $1
Banco Popular De PR Leading Bank $1
FirstBank Leading Bank $1
Departamento De Justicia D PR $1
US Department of Justice $1
IRS $1
OXTON PLACE OF DOUGLAS: Asks for Approval to Use Cash Collateral
----------------------------------------------------------------
Oxton Place of Douglas, LLC, asks the U.S. Bankruptcy Court for the
Northern District of Georgia to enter an order authorizing the
Debtor to use cash collateral and grant adequate protection.
All assets of the Debtor, primarily the Douglas Facility and
revenues therefrom, have been pledged to BOKF, N.A., d/b/a Bank of
Oklahoma, as successor indenture trustee under an Indenture of
Trust, dated as of Aug. 1, 2014 for approximately $4,600,000 of
outstanding bonds issued by the Douglas-Coffee County Industrial
Authority. The outstanding principal balance on the BOKF secured
obligation is approximately $4,600,000, and the outstanding
interest accrued through the Petition Date is approximately $29,806
plus fees of $6,447 for a total of $4,636,252. BOKF asserts liens
upon and security interests (hereinafter the "Lender Lien") against
all assets of the Debtor, including revenues from the Douglas
Facility.
The Debtor has unsecured claims totaling approximately $87,633
including $20,052 in taxes, rising primarily out of the operations
of the Douglas Facility since Affinity took over operations on May
1, 2016.
In the course of operating its business, the Debtor incurs minimal
operating expenses which are necessary for the continued operation
of its business, specifically and exclusively debt service to BOKF,
the Debtor's professional fees and the U.S. Trustee's quarterly
fees. The monthly contractual non-default interest accruing on the
indebtedness due to BOKF is approximately $28,844. The Debtor
projects professional fees of approximately $7,000 per month for
the next 90 to 120 days.
As adequate protection for any interest Lender may have in cash
collateral, the Debtor proposes:
A. That Lender be granted a security interest in and lien upon
the Debtor's postpetition revenues from the Douglas Facility and
proceeds to the same extent and priority as its prepetition lien
and interest in its prepetition collateral;
B. Continuation of the lien and security interest held by
Lender in its pre-petition Collateral;
C. Payment of the contractual non-default interest accruing
monthly in the amount of $28,844 to Lender; and
D. Provision of the Debtor's monthly operating reports as
required by the United States Trustee and filed with the Court.
About Oxton Place of Douglas
Oxton Place of Douglas, LLC, owns a personal care living facility
with 54 units, located at 1360 West Gordon Street, Douglas, Georgia
30025 known as the Manor House of Douglas. The Douglas Facility is
currently managed by Manor House of Douglas, LLC, an affiliate,
under a management agreement with the Debtor dated March 1, 2016.
Oxton Place of Douglas filed a Chapter 11 petition (Bankr. N.D. Ga.
Case No. 16-67316) on Sept. 30, 2016, and is represented by
Theodore N. Stapleton, Esq., in Atlanta, Georgia. The petition was
signed by Dwayne Edwards, managing member.
At the time of filing, the Debtor had $0 to $50,000 in estimated
assets and $1 million to $10 million in estimated liabilities.
P3 FOODS: Wants to Use Cash Collateral Until Nov. 3
---------------------------------------------------
P3 Foods, LLC, asks the U.S. Bankruptcy Court for the Northern
District of Illinois for authorization to use cash collateral
through Nov. 3, 2016.
The Debtor is indebted to the State of Minnesota for unpaid sales
tax. The State of Minnesota, Department of Revenue recorded a tax
lien in the amount of $505,606, with the Ramsey County Recorder. A
tax lien was also filed with the Secretary of State.
The Debtor is also indebted to Element Financial Corporation, in
the amount of $704,000, for the construction and remodeling of
various stores. Element Financial has a lien on all the Debtor's
assets, including accounts.
The Debtor requires the use of cash collateral to assist the Debtor
in continuing with its operations and to propose a plan of
reorganization. The Debtor tells the Court that if the franchises
cannot operate, they will lose their value to the detriment of all
creditors.
The Debtor's proposed Budget provides for total expenses in the
amount of $892,500, for all of its nine stores.
The Debtor proposes to grant the State of Minnesota and Element
Financial with valid and perfected replacement liens in and to the
Debtor's personal assets, to the same extent and with the same
priority as they held prepetition, among others.
A full-text copy of the Debtor's Motion, dated Oct. 14, 2016, is
available at http://bankrupt.com/misc/P3Foods2016_1632021_14.pdf
A full-text copy of the proposed Budget, dated Oct. 14, 2016, is
available at http://bankrupt.com/misc/P3Foods2016_1632021_14_1.pdf
P3 Foods, LLC is represented by:
Richard L. Hirsh, Esq.
RICHARD L. HIRSH, P.C.
1500 Eisenhower Lane, #800
Lisle, IL 60532
Telephone: (630) 434-2600
E-mail: rchala@sbcglobal.net
Element Financial Corporation can be reached at:
ELEMENT FINANCIAL CORP.
655 Business Center Dr, Suite 250
Horsham, PA 19044
About P3 Foods
P3 Foods, LLC, operates nine Burger King franchises in the area of
Minneapolis, Minnesota.
P3 Foods filed a chapter 11 petition (Bankr. N.D. Ill. Case No.
16-32021) on Oct. 6, 2016. The case is assigned to Judge Donald
Cassling. The Debtor is represented by Richard L. Hirsh, Esq., at
Richard L. Hirsh, P.C.
PALADIN ENERGY: Wants Cash Collateral Access Until Dec. 31
----------------------------------------------------------
Paladin Energy Corp. filed with the U.S. Bankruptcy Court for the
Northern District of Texas a second cash collateral motion, seeking
approval to use cash collateral until Dec. 31, 2016.
On May 6, 2016, the Court entered an interim order authorizing the
use of cash collateral, and on Aug. 11, 2016, the Court entered the
agreed final cash collateral order and stipulation. The Final Cash
Collateral Order allows the Debtor to use Cash Collateral through
Nov. 1, 2016.
On Sept. 29, 2016, the Debtor filed its Plan of Reorganization and
its Disclosure Statement in Support of Debtor's Plan of
Reorganization.
In the Second Motion, the Debtor requests the authority to use cash
collateral through Dec. 31, 2016, in the amounts listed, and for
the purposes disclosed, on the budget.
According to the Debtor, without the use of cash it would have
little hope in confirming its recently filed Plan and the
Bankruptcy Case would likely fall into a fire-sale liquidation
causing immediate, irreparable, and substantial injury all
creditors, the Debtor, and the Estate. Equally as important, it
would constitute severe and substantial injury to MUFG Union Bank,
N.A., or to any other entity claiming an alleged lien or other
interest against any of the Estate's assets.
The Debtor believes that the Bank will be adequately protected
because:
(i) the Debtor's usage of cash collateral will lead to increased
cash collateral;
(ii) the Debtor's usage of cash collateral will protect,
preserve, maintain, safeguard, and enhance the Bank's collateral by
avoiding a loss of interests and avoiding potentially disastrous
liabilities being imposed against collateral, and by avoiding a
cessation of operations;
(iii) the Interim Cash Collateral Order granted the Bank a lien in
all property, including all postpetition property, of the type that
the Bank presently has a lien against, specifically excluding
approved Budget expenses and accruals (and, for the avoidance of
doubt, further explicitly excluding Chapter 5 causes of action), to
the extent of any diminution in the value of Cash Collateral
resulting from the Debtor's usage thereof;
(iv) the Debtor has granted the Bank a superpriority
administrative claim, to the extent of any diminution in the value
of Cash Collateral resulting from the Debtor's usage thereof;
(v) the Debtor will continue to make adequate protection
payments in the amount of $50,000 on the first of November and
December; and
(vi) the Estate has unencumbered assets in the form of the
Wilbarger County wells which, pursuant to the Bank's replacement
lien, protect against any diminution in value.
Bank's Cash Collateral
The Debtor's senior, secured lender is MUFG Union Bank, N.A. (the
"Bank") as administrative agent. As of the Petition Date, the
Debtor was indebted to the Bank in the approximate amount of
$22,952,404.
The Debtor's present loan with the Bank originated in 2008 in the
original principal amount of $40 million. After the Petition Date,
the Bank, with authority from the Court, terminated and setoff
various obligations under a hedge agreement to the Bank, resulting
in a payment to the Bank of between approximately $800,000 and $1
million.
Additionally, the Debtor has made cash adequate protection payments
to the Bank of $150,000. This, after the Petition Date, the Bank
has been repaid upwards, or over, $1 million.
On Aug. 12, 2016, Sheridan Holding Company II, LLC, filed a
complaint with the Court to determine whether the proceeds
generated from the sale of hydrocarbons to third-party purchasers
are property of the Estate and to determine the extent of the
Debtor's and the Bank's interest in those proceeds pursuant to
various joint operating agreements in which Sheridan is a
counterparty among other related causes of action. Said complaint
initiated adversary proceeding no. 16-3118-bjh pending before this
Court (the "JOA Lawsuit").
The Complaint also named the Bank and Redmon Oil Company, Inc., as
co-defendants. On Aug. 23, 2016, Redmon Oil filed its Answer,
Counterclaims, Crossclaims, and Third-Party Complaint asserting
various causes of action including a determination of whether the
proceeds generated from the sale of hydrocarbons to third-party
purchasers are property of the Estate and to determine the extent
the Debtor and the Senior Lender have an interest in the proceeds.
On Sept. 6, 2016, Redmon sought a preliminary injunction against
the Debtor seeking the segregation of funds related to Redmon's
non-operator working interests in wells operated by the Debtor.
On Sept. 22, 2016, after a hearing and considering related
objections and briefing, an agreed stipulation was reached to net
postpetition proceeds owed to Redmon minus any related joint
interest billing on a monthly basis.
Therefore, at present, there is a dispute regarding whether all of
the Debtor's cash is the cash collateral of the Bank, or whether
Sheridan and/or Redmon have an interest in some of that cash. The
Debtor does not propose to try that issue through this Motion.
Rather, this Motion proposes to preserve all rights and all
protections regarding the interests of the Debtor, the Bank,
Sheridan, and Redmon, which interests will be adjudicated or
compromised by separate proceeding as is otherwise appropriate.
About Paladin Energy
Paladin Energy Corp., in existence since 1997, is in the oil and
gas business. Specifically, Paladin is a producer, owning or
otherwise having interests in numerous wells in Texas and New
Mexico from which the Debtor extracts oil and gas for sale to third
parties.
Paladin Energy sought chapter 11 protection (Bankr. N.D. Tex. Case
No. 16-31590) on April 21, 2016. The Debtor estimated assets and
debt of $10 million to $50 million.
The Debtor is represented by Davor Rukavina, Esq., at Munsch,
Hardt, Kopf & Harr, P.C., in Dallas, Texas.
PALOSKI SALON: Can Use American Express Bank Cash Collateral
------------------------------------------------------------
Judge Robert E. Littlefield, Jr., of the U.S. Bankruptcy Court for
the Northern District of New York authorized Paloski Salon & Spa,
LLC, doing business as Shapes & Colours Day Spa, to use American
Express Bank, FSB's cash collateral, pursuant to the Debtor's
Stipulation with American Express Bank.
The Debtor is indebted to American Express Bank in the amount of
$19,041. The indebtedness is secured by all the Debtor's assets,
including inventory and accounts receivable.
The relevant terms, among others, of the Stipulation are:
(1) The Debtor may use cash collateral from the filing date of
the bankruptcy petition through confirmation of the Debtor's Plan
of Reorganization.
(2) The Debtor will make adequate protection payments in the
amount of $600 to American Express Bank, commencing in Oct. 1,
2016.
(3) The Debtor will provide American Express Bank with copies
of its operating reports.
American Express Bank was granted a continuing lien and security
interest in the Debtor's assets acquired post petition to the same
extent, validity, and priority as it held prior to the Petition
Date.
A full-text copy of the Order, dated Oct. 14, 2016, is available at
http://bankrupt.com/misc/PaloskiSalon2016_16113251_36.pdf
American Express Bank, FSB can be reached at:
AMERICAN EXPRESS BANK, FSB
P.O. Box 981555
El Paso, Texas 79998-1555
American Express Bank, FSB, is represented by:
Crystal Jones Oswald, Esq.
BECKET AND LEE LLP
16 General Warren Boulevard
P.O. Box 3001
Malvern, PA 19355
Telephone: (610) 644-7800
About Paloski Salon & Spa
Paloski Salon and Spa, LLC, filed a Chapter 11 bankruptcy petition
(Bankr. N.D.N.Y. Case No. 16-11325) on July 20, 2016. The petition
was signed by Kelly Paloski, member. The Debtor is represented by
Richard L. Weisz, Esq., at Hodgson Russ LLP. At the time of
filing, the Debtor had estimated both assets and liabilities at
$100,000 to $500,000 each.
PARALLAX HEALTH: Working Capital Deficit Raise Going Concern Doubt
------------------------------------------------------------------
Parallax Health Sciences, Inc., filed with the U.S. Securities and
Exchange Commission its quarterly report on Form 10-Q, disclosing a
net loss of $168,388 on $4.72 million of revenue for the
three-months ended Sept. 30, 2015, compared to a net loss of
$222,147 on $nil of revenue for the same period in 2014.
For the nine months ended Sept. 30, 2015, the Company listed a net
loss of $709,308 on $4.72 million of revenue, compared to a net
loss of $480,716 on $nil of revenue for the same period in the
prior year.
The Company's balance sheet at Sept. 30, 2015, showed total assets
of $31.40 million, total liabilities of $33.54 million and
stockholders' deficit of $2.14 million.
The Company has incurred losses since inception resulting in an
accumulated deficit of $3,704,186, and a working capital deficit of
$1,228,502, and further losses are anticipated. The Company's
ability to continue as a going concern is dependent upon its
ability to generate profitable operations in the future and/or to
obtain the necessary financing to meet its obligations and repay
its liabilities arising from normal business operations when they
come due, which may not be available at commercially reasonable
terms. There can be no assurance that the Company will be able to
continue to raise funds, in which case the Company may be unable to
meet its obligations and the Company may cease operations. These
factors, among others, raise substantial doubt about the Company's
ability to continue as a going concern.
The consolidated financial statements reflect all adjustments
consisting of normal recurring adjustments, which, in the opinion
of management, are necessary for a fair presentation of the results
for the periods shown. The financial statements do not include any
adjustments relating to the recoverability and classification of
recorded assets, or the amounts of and classification of
liabilities that might be necessary in the event the Company cannot
continue as a going concern.
A full-text copy of the Company's Form 10-Q is available at:
https://is.gd/QYu9y5
Parallax Health Sciences, Inc., has its principal line of business
in the bio-medical sector. The Company, through its subsidiary,
Endeavor Sciences, Inc., is focused on the exploitation of a
diagnostic and monitoring platform and processes. Its Target
System (the systems includes the VT-1000 Desktop Analyzer, the
Target Antigen Detection Cartridge and associated reagents)
technology applies immunochemical and optical methods to detect and
quantify analytes present in human specimens, including blood,
urine, and feces. Its product line includes a previously Food and
Drug Administration-cleared VT-1000 Desktop Analyzer and around a
dozen FDA 510(k) cleared diagnostic tests.
PARK GREEN: US Bank Bid for Turnover, Accounting Denied
-------------------------------------------------------
Judge Vincent P. Zurzolo has entered an order denying U.S. Bank,
National Association's motion for an order (i) prohibiting Park
Green LLC from using cash collateral, (ii) ordering Park Green to
provide accounting and (iii) ordering Park Green to provide
turnover of cash collateral.
"For the reasons stated on the record, the Motion is denied," Judge
Zurzolo ruled Oct. 7, 2016.
A hearing was held on Sept. 20, 2016.
As reported in the Aug. 29, 2016 edition of the TCR, U.S. Bank
filed a motion to compel Park Green to provide an accounting of
cash collateral, in the form of rents, received from the Debtor's
property commonly known as 1880 East Walnut Street and 75 North
Greenwood Avenue, Pasadena, California. U.S. Bank also asked the
Court to order the Debtor to turn over to U.S. Bank the cash
collateral collected from the Property since the inception of the
case, and to pay all sums received from the property as rents to
U.S. Bank until the confirmation of a plan, the dismissal of the
case, or the payment in full of the obligations owing to U.S.
Bank.
U.S. Bank relates that the Debtor is indebted to it in the amounts
of $2.16 million and $649,000, exclusive of accruing attorney's
fees and costs, as of Aug. 8, 2016. U.S. Bank asserts that the
rents are its cash collateral and that the Debtor clearly knows
that it is not entitled to use cash collateral without creditor
approval or a court order.
About Park Green
Park Green LLC filed a chapter 11 petition (Bankr. C.D. Cal. Case
No. 15-28991) on Dec. 16, 2015. The petition was signed by Steve
C. Schultz, managing member. The case is assigned to Judge Vincent
P. Zurzolo.
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 represented by Leonard Pena, Esq., at Pena & Soma,
APC.
Secured creditor U.S. Bank National Association is represented by
George C. Lazar, Esq., at Fox Johns Lazar Pekin & Wexler, APC, in
San Diego.
PARK OVERLOOK: Trustee Hires LaMonica Herbst as Counsel
-------------------------------------------------------
Salvatore LaMonica, the Chapter 11 Trustee of the estates of Park
Overlook, LLC and Dawn Hotel Of NY, LLC, seeks authorization from
the U.S. Bankruptcy Court for the Southern District of New York to
employ LaMonica Herbst & Maniscalco, LLP as counsel for the
Trustee, effective September 12, 2016.
The Trustee requires LaMonica Herbst to:
(a) assist the Trustee with an investigation into the Debtors'
financial and business affairs including, but not limited
to, any pre-petition transfers of property;
(b) investigate and advise the Trustee as to the actions and
activities of any insider and the existence of any claims
or causes of action that can be pursued for the benefit of
the Debtors' estates;
(c) assist the Trustee in the pursuit and recovery of any
voidable transfers of the Debtors' assets under, inter
alia, Bankruptcy Code sections 544, 546, 547, 548 and 550,
and the New York State Debtor Creditor law;
(d) prepare, file and prosecute motions objecting to claims, as
directed by the Trustee, that may be necessary to complete
the administration of the Debtors' estates; and
(e) prepare and file motions and applications and a plan of
reorganization or such other disposition of this estate, as
directed by the Trustee in connection with his statutory
duties.
LaMonica Herbst will be paid at these hourly rates:
Partners $595
Associates $415
Para-professionals $175
LaMonica Herbst will also be reimbursed for reasonable
out-of-pocket expenses incurred.
Gary F. Herbst, member of LaMonica Herbst, 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.
LaMonica Herbst can be reached at:
Gary F. Herbst, Esq.
LAMONICA HERBST & MANISCALCO, LLP
3305 Jerusalem Avenue
Wantagh, NY 11793
Tel: (516) 826-6500
About Park Overlook
Park Overlook, LLC and Dawn Hotel of NY, LLC filed Cchapter 11
petitions (Bankr. S.D.N.Y. Case Nos. 16-11354 and 16-11355) on May
12, 2016. The petitions were signed by Gordon Duggins, member. The
Debtors are represented by Adrienne Woods, Esq., at The Law Offices
of Adrienne Woods, P.C. The Debtors estimated their assets and
debts at $0 to $50,000 at the time of the filing.
PC ACQUISITION: Asks for Cash Collateral Access Until December
--------------------------------------------------------------
PC Acquisition, LLC, asks the U.S. Bankruptcy Court for the Eastern
District of Michigan to approve its use of cash collateral.
The Debtor says the majority of its value arises from its ongoing
operations and its ability to continue collecting rent from the
residents of its mobile homes. Without authority to use cash
collateral, the Debtor believes it will suffer irreparable harm
because it will be forced to immediately shut down and force
low-income families out of their homes.
During the first 60 days of the case, the Debtor projects that it
will need to spend $20,161 to avoid immediate and irreparable
harm.
On the Petition Date, the Debtor, without admission, believes that
the cash collateral, as defined in 11 U.S.C. Sec. 363, consists of
cash and accounts receivable. At this time, the Debtor is unable
to provide the value of the cash collateral, because the
documentation and information is believed to be in the possession
of the state court receiver. The Debtor believes that all parties
will be advised of the value of the cash collateral when the
receiver provides an accounting to the Court pursuant to 11 U.S.C.
Sec. 543.
Before the Petition Date, the Debtor entered into a loan with Park
Capital Investments, LLC, and related security instruments. The
Debtor anticipates that PCI will assert a security interest in the
Debtor's cash collateral.
The Debtor requires the use of cash collateral to make payments as
are necessary for the continuation of its business as shown in its
proposed budget. The budget forecasts income from leases of
$28,000 per month for October to December. Total expenses would be
$10,394 in October, $9,767 in November, and $9,358 in December.
As adequate protection under Sec. 363 and 361 of the Bankruptcy
Code, the Debtor will provide PCI replacement liens in the Debtor's
personal property and the proceeds and products thereof. As
additional adequate protection, the Debtor will pay all personal
property taxes, real property taxes, maintenance expenses and wages
in connection with preserving the property.
As part of its request to use cash collateral, the Debtor is
requesting that the Court allow it to escrow, on a monthly basis,
$5,000 into the client trust account of its proposed counsel to pay
the professional fees of legal counsel employed by the Debtor in
connection with the bankruptcy proceeding to the extent the fees
are allowed by the Court.
About PC Acquisition
PC Acquisition, LLC, owns 100 mobile homes that are located at
various mobile home parks. PC also owns a commercial building
located at 23540 Reynolds Court, Clinton Township, MI.
PC Acquisition filed a Chapter 11 petition (Bankr. E.D. Mich. Case
No. 16-53191) on Sept. 25, 2016. The petition was signed by Mark
D. Krueger, member. The Hon. Phillip J. Shefferly is the case
judge.
The Debtor estimated $1 million to $10 million in assets and $10
million to $50 million in liabilities.
Related entities St. John/Battle Creek Owners, LLC, Battle Creek
Realty, LLC, Denmark Management Company and Denmark Services, LLC,
simultaneously sought Chapter 11 protection.
The Debtors tapped Ernest Hassan, Esq., at Stevenson & Bullock,
P.L.C., in Southfield, Michigan as counsel.
No trustee or examiner has been appointed in the cases and no
committee has been appointed or designated.
PENNYMAC: Moody's Assigns B2 Long-Term Issuer Rating
----------------------------------------------------
Moody's Investors Service affirmed Private National Mortgage
Acceptance Company, LLC's (PennyMac) B1 Corporate Family Rating and
assigned a B2 long-term issuer rating. In addition, Moody's has
withdrawn the B2 unsecured bond rating with the company's
postponement of its proposed $300 million unsecured bond offering.
Issuer: Private National Mortgage Acceptance Co, LLC
Affirmations:
Corporate Family Rating , B1
Withdrawals:
US$300M Senior Unsecured Regular Bond/Debenture, previously
rated B2
Assignments:
Issuer Rating, to B2
The rating outlook remains stable.
RATINGS RATIONALE
PennyMac's ratings reflect the company's strong profitability,
solid capital level, and experienced management team. PennyMac's
financial metrics compare well to its B-rated residential mortgage
finance peers. Pre-tax pre-provision profit as a percentage of
managed assets averaged above 5% per annum over the last several
years. PennyMac also has strong capital, as demonstrated by the
company's tangible common equity to assets ratio of more than 20%.
Risk factors include PennyMac's reliance on short-term secured
funding, which limits the company's financial flexibility, its
limited franchise position as a financial services company in the
residential mortgage market, and the risks embedded in its rapid
growth.
In addition, the ratings reflect PennyMac's reliance on PennyMac
Mortgage Investment Trust (B1 negative) as an important funding
vehicle and revenue source for its loan production and loan
servicing business.
The B2 issuer rating reflects the structural subordination of the
company's senior unsecured obligations to the firm's secured
indebtedness.
The stable rating outlook reflects Moody's expectation that
PennyMac will be able to maintain its solid financial performance,
minimize operational risk and maintain solid capital.
Ratings could be upgraded if PennyMac can further diversify its
production channels and funding structure, reducing its reliance on
its correspondent production channel as well as secured financing.
The ratings could be downgraded if financial performance
deteriorates - for example, if net income to managed assets falls
consistently below 4% or if leverage increases such that the
company's tangible common equity to assets falls below 20%.
The principal methodology used in these ratings was Finance
Companies published in October 2015.
PERSISTENCE PARTNERS: Names Jeffrey Hellman as Special Counsel
--------------------------------------------------------------
Persistence Partners IV LLC seeks authorization from the U.S.
Bankruptcy Court for the District of Connecticut to employ the Law
Offices of Jeffrey Hellman, LLC as special counsel.
The Debtor requires Mr. Hellman to represent the Debtor in
arbitration or litigation matters and specifically in connection
with enforcement of the Debtor's rights under certain agreements
referred to as Fee Sharing Agreements including the collection of
funds presently due.
Defendants may include, without the intention to limit scope of
retention in anyway, entities known as Building and Land Technology
Corp., Lubert Adler, L.P. and various affiliates of each. Current
and past due receivables are estimated at about $1,000,000 and the
total value to this estate of these assets is estimated at about
$30,000,000.
Mr. Hellman will be paid by way of a contingency fee for his
services to be rendered herein for the Debtor. Mr. Hellman has
agreed to accept 10% of gross recovery, plus out of pocket
disbursements that may be required.
Jeffrey Hellman, sole member of the firm, assured the Court that
the firm is a "disinterested person" as the term is defined in
Section 101(14) of the Bankruptcy Code and does not represent any
interest adverse to the Debtor and its estate.
Mr. Hellman can be reached at:
Jeffrey Hellman, Esq.
LAW OFFICES OF JEFFREY HELLMAN, LLC
195 Church Street, 10th Floor
New Haven, CT 06510
Tel: (203) 691-8762
About Persistence Partners
Persistence Partners IV LLC filed Chapter 11 bankruptcy petition
(Bankr. Conn. Case No. 16-51161) on August 30, 2016. Joseph P.
Beninati signed the petition as manager. Carl T. Gulliver, Esq.,
at Coan Lewendon Gulliver & Miltenberger LLC serves as the Debtors'
counsel.
Persistence Partners estimated assets in the range of $10 million
to $50 million and estimated debts in the range of $500,000 to $1
million.
PFO GLOBAL: Signs Consulting Agreement with Former CFO
------------------------------------------------------
Brigitte Rousseau, the former chief financial officer of PFO
Global, Inc., entered into a consulting agreement with the Company
on Oct. 10, 2016. Pursuant to the Consulting Agreement, Ms.
Rousseau agreed to provide certain advisory services to the
Company, as directed by the Company's board of directors for up to
twenty hours per week for a period of six months. The Company
agreed to pay to Ms. Rousseau (i) a monthly fee in the amount of
$12,330 and (ii) for any hours worked by Ms. Rousseau pursuant to
the Consulting Agreement that exceed eighty hours in any calendar
month, an additional fee of $100.00 per hour.
The term of the Consulting Agreement commenced on Sept. 1, 2016,
and continues until Feb. 28, 2017, subject to the early termination
provisions provided in the Consulting Agreement. If the Consulting
Agreement is terminated by the Company for Cause or by Ms.
Rousseau, the Company agreed to pay to Ms. Rousseau any unpaid
amount of the Consulting Fee that has accrued prior to the date of
termination. If the Consulting Agreement is terminated by the
Company without Cause or as a result of Ms. Rousseau's death or
disability, the Company agreed to pay to Ms. Rousseau any unpaid
amount of the Consulting Fee that has accrued prior to the date of
termination and any unpaid amount of the Consulting Fee that is
payable to Ms. Rousseau through the end of the Term.
Pursuant to the Consulting Agreement, and among other items, Ms.
Rousseau agreed to a general release and waiver and, for the
duration of the Term and for a one-year period after the Term, a
non-competition covenant and a non-solicitation covenant.
About PFO Global
PFO Global, Inc., is an innovative manufacturer and commercial
provider of advanced prescription lenses, finished eyewear and
vision technologies targeted towards the global optometrists'
marketplace. The Company's uniquely interactive manufacturing,
fulfillment and proprietary online ordering systems combine with
its eyewear lens product lines, are intended to meet the needs of a
broad array of eyewear markets, from the offices of independent eye
care professional to U.S. healthcare entitlement programs, such as
Medicaid and Medicare.
As of June 30, 2016, PFO Global had $1.48 million in total assets,
$29.50 million in total liabilities and a total stockholders'
deficit of $28.02 million.
PFO Global reported a net loss of $15.66 million in 2015 following
a net loss of $8.45 million in 2014.
During the year ended Dec. 31, 2015, the Company raised $6.8
million in debt, net of repayments and issuance costs. The Company
believes that its current cash on hand will not be sufficient to
fund its projected operating requirements. These conditions raise
substantial doubt about the Company's ability to continue as a
going concern.
PHOENIX, AZ: Moody's Assigns Ba1 Rating on Facility Revenue Bonds
-----------------------------------------------------------------
Moody's Investors Service has assigned a Ba1/Stable to outstanding
parity obligations of Legacy Traditional Schools, Education
Facility Revenue Bonds Series 2013, 2014A and 2015 of which a
cumulative $147.5 million remains outstanding. Upon issuance of
the Series 2016 Revenue Bonds, these outstanding series will
represent parity obligations, for which the thirteen-member schools
within the obligated group are jointly and severally liable for
payments on all four outstanding series. The Series 2016 revenue
bonds, expected to be issued in the approximate amount of $95
million are also rated Ba1/Stable. The remainder of this report is
effectively the same as the report published for the Series 2016
bonds on Oct. 13, 2016.
The Ba1 rating reflects the security provided by a thirteen-member
obligated group of K-8 schools, with a total current Average Daily
Membership (ADM) of 11,659, and combined revenues in fiscal 2016 of
close to $72 million. The rating also incorporates the schools'
strong academic performance; consistent educational and
environmental aspects across obligated group members that have
enabled successive schools to open at or near capacity; and
satisfactory financial operations with existing schools able to
provide sum sufficient coverage of maximum annual debt service
based upon audited 2016 financials.
The rating reflects the high degree of leverage of the obligated
group, which is expected to remain elevated over the foreseeable
future given plans for additional growth. The rating also
incorporates the potential challenges involved in opening the first
charter school outside of Arizona; a Nevada charter school expected
to open in the fall of 2017. Also taken into consideration are
overlapping duties and relationships among the governing boards of
the charter schools and CFE Management Group, LLC with familial
relationships among key personnel of the obligated group's boards,
staff members and the Manager. Additionally, the rating reflects
weak board practices lacking clearly defined board composition,
succession, finances and investments policies as well as selection
and evaluation criteria for the Manager. The rating also
incorporates risks associated with payment obligations to the
Manager that remain subordinate to debt service only until any
expiration of the management agreement.
Rating Outlook
The stable outlook is based upon our expectation for future
enrollment growth that will support satisfactory financial
performance, with nine members of the thirteen-member obligated
group already able to provide sum sufficient coverage of MADS based
upon audited 2016 financials.
Factors that Could Lead to an Upgrade
Adoption of board policies that specifically delineate the
independence of board members from the Manager with clear
articulation of board policies
Significant and sustained improvement in the obligated group's
debt ratios with elimination of outstanding obligations to the
Manager
Growth of enrollment levels to capacity at each school within
the obligated group
Factors that Could Lead to a Downgrade
Increases in outstanding debt obligations to Manager
Increases in inter school borrowing levels and loans that would
weaken overall performance of the obligated group
Failure to meet enrollment, cash or debt service coverage
figures as projected
Legal Security
Upon issuance of the Series 2016 bonds, the revenue bonds will be
secured by the combined Pledged Revenues and assets of a
thirteen-school obligated group. The thirteen schools consist of
Legacy Traditional Schools (LTS) as follows: LTS - Avondale; LTS -
Casa Grande; LTS - Chandler; LTS - Gilbert; LTS - Glendale; LTS -
Laveen; LTS - Maricopa; LTS - Nevada, Inc.; LTS - North Chandler;
LTS - Northwest Tucson; LTS - Peoria; LTS - Queen Creek Campus; and
LTS -Surprise. Pledged Revenues consist largely of state revenues,
excluding approximately 7% of receipts associated with Prop 301 and
123 that are restricted for certain purposes, namely teacher
compensation and instructional improvement. Under a Master Trust
Indenture, the Series 2016 bonds will comprise parity obligations
with $35.3 million in outstanding Series 2013 revenue bonds, $72
million in outstanding Series 2014A revenue bonds, and $40.2
million in outstanding Series 2015 revenue bonds. Notably, while
all of the schools are jointly and severally liable for debt
service, the loss of a charter on the part of any individual school
constitutes an event of default.
Positively, under an irrevocable pledge and assignment executed by
each individual school, state payments flow directly from the state
treasurer to the Trustee, who will then make required debt service
payments and reserve deposits on a monthly basis before funds are
then made available to the schools, effectively creating a "lock
box" structure for debt service payments, a factor that we consider
critical in supporting the credit strength at the current rating
level.
Debt service is sent to the Trustee according to individual debt
service schedules for each of the schools based upon their financed
amount. In the event that Pledged Revenues are insufficient to
cover required monthly deposits of 1/12 interest, 1/6 principal,
the shortfall would be taken from the remaining schools' Pledged
Revenues on a pro rata basis based upon their proportional share of
the total financed amount. This advance would then constitute a
"loan" that would accrue interest charges at an annual rate of 8%.
Covenants are weak but typical of this sector, with sum sufficient
coverage of debt service required if days' cash equals a minimum of
90 days. Debt service coverage must be maintained at 1.1x should
cash fall below 90 days. Should debt service fall below sum
sufficient coverage, the majority of bondholders can declare an
event of default. The obligated group has also covenanted to
maintain a minimum of 45-days cash on hand. Should cash fall below
this level, the obligated group can be required to hire a
management consultant if directed to do so by the majority of
bondholders.
The issuance of additional bonds, exclusive of refundings and
financings necessary to complete a project, requires both sum
sufficient (1.0x) coverage of MADS based upon the most recently
completed audited year and 1.25x coverage of MADS based upon
projections for each successive year. Additional indebtedness also
requires certification that a rating agency would not lower or
withdraw its rating, but since this is an undefined term under the
Master Indenture, we do not consider it to be a meaningful
limitation. Each participating school is also allowed to incur
short-term indebtedness for up to 10 percent of Pledged Revenues
for the prior year with a combined total among obligated group
members not exceeding 5 percent. Members may also incur individual
long-term indebtedness under similar restrictions. Additionally, if
cash on hand equals or exceeds 150 days, any participating school
may make a loan to an affiliate who is not a member of the
obligated group for a period of up to five years. Additional
members may be added to the obligated group, and members may
withdraw from the obligated group upon satisfaction of all
outstanding obligations.
Under the Master Indenture, monthly deposits for each school are
also required following payment of debt service, into a Repair and
Replacement Fund, equal to one-fifth of 2 percent (.004) of the
costs associated with property, plant and equipment needs as
determined by a capital assessment performed every five years.
Use of Proceeds
The Series 2013, 2014A and 2015 Revenue Bonds were all issued to
fund acquisition and construction projects at schools within the
obligated group. Bond proceeds were also utilized to fund a debt
service reserve for each series equivalent to MADS, equal to the
debt service reserve requirement for the Series 2016.
The current issuance will provide financing for six members of the
obligated group. Roughly $30 million will constitute a refunding
of outstanding loans of the Glendale and North Chandler schools
with the remainder financing school acquisition and construction at
Laveen, Peoria and Surprise campuses and the new Nevada school.
Bond proceeds will also fund one year of capitalized interest and a
debt service reserve account funded at MADS.
Obligor Profile
The obligated group includes thirteen individual K-8 schools, each
of which is affiliated with Legacy Traditional Schools, an Arizona
non-profit corporation. The schools are managed by CFE Management
Group, LLC and are operated pursuant to individual charter school
contracts. Of the thirteen schools, twelve are currently in
operation with a thirteenth school planned to open in Nevada in the
fall of 2018. Nine of the schools were open for the 2015-2016
school year and have audited fiscal 2016 information.
Issue: Education Facility Revenue Bonds (Legacy Traditional Schools
Project), Series 2014A; Rating: Ba1; Rating Type:
Underlying LT; Sale Amount: $73,000,000; Expected Sale Date:
04/23/2014; Rating Description: Revenue: Government Enterprise;
Issue: Education Facility Revenue Bonds (Legacy Traditional Schools
Projects), Series 2015; Rating: Ba1; Rating Type:
Underlying LT; Sale Amount: $40,660,000; Expected Sale Date:
03/31/2015; Rating Description: Revenue: Government Enterprise;
Issue: Education Revenue Bonds (Legacy Traditional School Project
- Queen Creek and Casa Grande Campuses), Series 2013; Rating:
Ba1; Rating Type: Underlying LT; Sale Amount: $36,910,000;
Expected Sale Date: 03/20/2013; Rating Description: Revenue:
Government Enterprise;
PILGRIM MEDICAL: Committee Taps Cullen & Dykman as Legal Counsel
----------------------------------------------------------------
The official committee of unsecured creditors of Pilgrim Medical
Center Inc. seeks approval from the U.S. Bankruptcy Court for the
District of New Jersey to hire Cullen & Dykman LLP.
The firm will serve as the committee's legal counsel in connection
with Pilgrim's Chapter 11 case. The firm's professionals and their
hourly rates are:
Partners $500
Associates $250 - $395
Paralegals $150
David Edelberg, Esq., at Cullen & Dykman, disclosed in a court
filing that the firm is a "disinterested person" as defined in
section 101(14) of the Bankruptcy Code.
The firm can be reached through:
David Edelberg, Esq.
Cullen & Dykman LLP
433 Hackensack Avenue
Hackensack, NJ 07601
Tel: (201) 488-1300
Fax: (201) 488-6541
About Pilgrim Medical Center
Pilgrim Medical Center, Inc. sought protection under Chapter 11 of
the Bankruptcy Code (Bankr. D. N.J. Case No. 16-15414) on March 22,
2016. The petition was signed by Nicholas V. Campanella,
shareholder. The case is assigned to Judge Stacey L. Meisel. The
Debtor estimated under $50,000 in assets and debts of $1 million to
$10 million.
PRECISION WELDING: Court Sets Dec. 22 Cash Collateral Hearing
-------------------------------------------------------------
Judge Sandra R. Klein of the U.S. Bankruptcy Court for the Central
District of California scheduled a continued hearing on Precision
Welding, Inc.'s use of cash collateral on
Dec. 22, 2016 at 8:30 a.m.
Judge Klein ordered that the last day for the Debtor to serve and
file a supplement to its Motion, including its proposed budget for
the continued use of cash collateral will be Dec. 8, 2016.
About Precision Welding
Precision Welding, Inc., filed a chapter 11 petition (Bankr. C.D.
Cal. Case No. 16-20823) on Aug. 15, 2016. The petition was signed
by David Jones, president and CEO. The Debtor is represented by
Steven R. Fox, Esq., at the Law Offices of Steven R. Fox. The case
is assigned to Judge Sandra R. Klein. The Debtor disclosed total
assets of $1.07 million and total liabilities of $909,260.
QUANTUM MATERIALS: Extends Maturity of Conv. Debentures to 2018
---------------------------------------------------------------
Quantum Materials Corp. entered into an Amended and Restated
Subscription Agreement by and among the Company, Carson Diversified
Investments LP, and Carson Haysco Holdings LP on Jan. 15, 2015.
Pursuant to the 2015 Agreement, the Company issued (i) convertible
debentures to Carson Haysco in the principal amount of $250,000 due
on or before Jan. 15, 2017, and (ii) convertible debentures to
Carson Diversified in the principal amount of $250,000 due on or
before the Maturity Date.
Also pursuant to the 2015 Agreement, the Company issued (i) a
common stock purchase warrant pursuant to which the Company granted
Carson Haysco the right and option to purchase up to 3,125,000
shares at an exercise price of $0.06 through Jan. 15, 2017, and
(ii) a common stock purchase warrant pursuant to which the Company
granted Carson Diversified the right and option to purchase up
3,125,000 shares at an exercise price of $0.06 through Jan. 15,
2017.
The Company had also previously issued (i) a common stock purchase
warrant pursuant to which the Company granted Carson Haysco the
right and option to purchase up to 2,500,000 shares at an exercise
price of $0.06 through Dec. 31, 2016, and (ii) a common stock
purchase warrant pursuant to which the Company granted Carson
Diversified the right and option to purchase up 2,500,000 shares at
an exercise price of $0.06 through Dec. 31, 2016.
New Agreement
The Company and the Holders on Oct. 10, 2016, entered into an
Agreement to (i) amend the 2015 Convertible Debentures to extend
the Maturity Date, (ii) to amend the 2014 Warrants to permit the
cashless exercise of 1,250,000 Shares by each of the Holders and to
terminate the 2014 Warrants upon the cashless exercise, and (iii)
to exercise the 2015 Warrants with cash settlement.
1. Amendment to 2015 Convertible Debentures. The Maturity Date
of the 2015 Convertible Debentures is extended to Jan. 15,
2018, with all other terms and provisions thereof remaining
in full force and effect.
2. Amendment to 2014 Warrants; Termination of Remaining 2014
Warrants. The Company agreed to the following for each of
the Holders: (i) the issuance of 1,250,000 shares (one-half)
of the 2,500,000 shares pursuant to each of the 2014
Warrants in exchange for the cancellation of the remaining
1,250,000 shares of the 2014 Warrants with such 1,250,000
Shares to be issued upon receipt of the warrant exercise
form. The Company and the Holders agree that the cashless
exercise is the full and complete exercise of the 2014
Warrants.
3. Exercise of 2015 Warrants. Each of the Holders elected to
exercise the respective 2015 Warrants, at the stated
exercise price of $0.06 per share, for $187,500 and an
aggregate purchase price of $375,000 for both of the 2015
Warrants, and the Company agreed to issue 3,125,000 to each
of the Holders upon receipt of (i) the 2015 Warrant Purchase
Price and (ii) the subscription forms attached to the
respective 2015 Warrants.
About Quantum Materials
Quantum Materials Corp. and its wholly owned subsidiary, Solterra
Renewable Technologies, Inc., are headquartered in San Marcos,
Texas. The company specializes in the design, development,
production and supply of quantum dots, including tetrapod quantum
dots, a high performance variant of quantum dots, and highly
uniform nanoparticles, using its patented automated continuous flow
production process.
Quantum Materials reported a net loss of $6.10 million on $240,800
of revenues for the year ended June 30, 2016, compared to a net
loss of $2 million on $0 of revenues for the year ended June 30,
2015.
As of June 30, 2016, Quantum Materials had $1.27 million in total
assets, $2.31 million in total liabilities and a total
stockholders' deficit of $1.04 million.
Weaver and Tidwell, L.L.P., in Houston, Texas, issued a "going
concern" qualification on the consolidated financial statements for
the year ended June 30, 2016, citing that the Company has suffered
recurring losses from operations and has an accumulated deficit
that raises substantial doubt about its ability to continue as a
going concern.
QUANTUMSPHERE: Squar Milner LLP Casts Going Concern Doubt
---------------------------------------------------------
QuantumSphere, Inc., filed with the Securities and Exchange
Commission its annual report on Form 10-K, disclosing a net loss of
$4.36 million on $46,669 of net sales for the fiscal year ended
June 30, 2016, compared with a net loss of $5.31 million on $48,047
of net sales for the fiscal year ended June 30, 2015.
Squar Milner LLP issued a "going concern" qualification on the
consolidated financial statements for the fiscal year ended June
30, 2016, citing that the Company has recurring losses from
operations since inception and has limited working capital.
The Company's balance sheet at June 30, 2016, showed $1.33 million
in total assets, $3.57 million in total liabilities, and a
stockholders' deficit of $2.25 million.
A copy of the Form 10-K is available at:
https://is.gd/4tbYXV
About QuantumSphere, Inc.
QuantumSphere, Inc., (QSI) has developed a process to manufacture
metallic nanopowders with end-use application focused on the
chemical sector. The Company's principal activities include
capital formation, research and development, and marketing of its
metallic nanopowder products. The Company manufactures various
metals, bi-metallic alloys and catalysts at the nanoscale,
including iron, silver, copper, nickel and manganese. It offers
custom dispersions and integrated catalytic solutions for the
energy storage and chemical sectors, including nanoscale gold,
palladium, aluminum and tin. The Company's products include
QSI-Nano Iron, QSI-Nano Silver, QSI-Nano Copper, QSI-Nano Nickel
and QSI-Nano Manganese.
QUOTIENT LIMITED: Closes $120 Million Secured Debt Financing
------------------------------------------------------------
Quotient Limited announced the completion of a private placement of
up to $120 million of 12% Senior Secured Notes due 2023. At the
initial closing of the transaction, Quotient issued $84 million of
notes and received net proceeds of approximately $79 million after
expenses. Quotient will issue an additional $36 million of notes
to note purchasers upon public announcement of field trial results
for the MosaiQ IH Microarray that demonstrates greater than 99%
concordance for the detection of blood group antigens and greater
than 95% concordance for the detection of blood group antibodies
when compared to predicate technologies for a pre-defined set of
blood group antigens and antibodies. Quotient intends to use the
net proceeds from this transaction, among other things, to repay
all outstanding obligations to MidCap Financial Trust under its
existing loan agreement and for general corporate purposes. Morgan
Stanley & Co. LLC acted as sole placement agent for the
transaction.
The notes bear interest at a rate of 12% per annum, payable
semi-annually on April 15 and October 15 of each year, commencing
on April 15, 2017. On each payment date, commencing on April 15,
2019, Quotient will pay an installment of principal of the notes
pursuant to a fixed amortization schedule. The stated maturity
date of the notes is Oct. 15, 2023. The notes are redeemable at
the option of Quotient at a redemption price that includes a
make-whole premium until Oct. 14, 2018, and, thereafter, at a
redemption price that includes a declining premium to par over four
years. The notes are guaranteed by Quotient's subsidiaries and
secured by substantially all of the property and assets (subject to
certain exclusions) of Quotient and its subsidiaries.
Additionally, Quotient has sold a royalty right to the note
purchasers, representing a right to receive an aggregate 2.0%
royalty payment on net sales of MosaiQ instruments and consumables
in the donor testing market in the European Union and the United
States. The royalty will be payable beginning on the date that
Quotient or its affiliates enters into a contract for the sale of
MosaiQ instruments or consumables in the donor testing market in
the European Union or the United States and ending on the last day
of the calendar quarter in which the eighth annual anniversary of
the first contract date occurs.
About Quotient Limited
Quotient is a commercial-stage diagnostics company committed to
reducing healthcare costs and improving patient care through the
provision of innovative tests within established markets. With an
initial focus on blood grouping and serological disease screening,
Quotient is developing its proprietary MosaiQ technology platform
to offer a breadth of tests that is unmatched by existing
commercially available transfusion diagnostic instrument platforms.
The Company's operations are based in Edinburgh, Scotland; Eysins,
Switzerland and Newtown, Pennsylvania.
As of June 30, 2016, US$102.08 million in total assets, US$74.22
million in total liabilities and US$27.85 million in total
shareholders' equity.
Quotient Limited reported a net loss of US$33.87 million for the
year ended March 31, 2016, a net loss of US$59.05 million for the
yera ended March 31, 2015, and a net loss of US$10.16 million for
the year ended March 31, 2014.
Ernst & Young LLP, in Belfast, United Kingdom, issued a "going
concern" qualification on the consolidated financial statements for
the year ended March 31, 2016, citing that the Company has
recurring losses from operations and planned expenditure exceeding
available funding that raise substantial doubt about its ability to
continue as a going concern.
RAYMOND & ASSOCIATES: Wells Fargo Bid to Stop Cash Use Denied
-------------------------------------------------------------
Judge Jerry C. Oldshue, Jr., entered an order conditionally denying
Wells Fargo Bank's motion to prohibit Raymond & Associates, LLC,
from using cash collateral.
Having reviewed the motion and heard the arguments of counsel at
the hearing conducted in this matter on Oct. 4, 2016, the Court
held that:
1. The Debtor failed to make two adequate protection payments to
Wells Fargo, totaling $30,000, that were due in August and
September 2016. The Debtor is currently obligated to make another
adequate protection payment to Wells Fargo on or before Oct. 15,
2016.
2. Wells Fargo and the Debtor have agreed, beginning with the
October 15 adequate protection payment, to reduce the Debtor's
monthly adequate protection payments to $12,361 per month, due on
or before the fifteenth day of every month so long as this case is
pending or until a plan of reorganization is confirmed.
3. The Debtor has committed to the Court and to Wells Fargo that
it will bring all adequate protection payments owed to Wells Fargo
current on or before Nov. 3 by paying Wells Fargo $42,361.
Accordingly, Judge Oldshue ruled that the Motion is CONDITIONALLY
DENIED based on the Debtor's representation that it will make the
payment by Nov. 3.
If the Debtor does not make that payment, the Debtor will have no
authority to use Wells Fargo's cash collateral from and after
Nov. 3, 2016, absent an order from the Court.
In its motion, Wells Fargo Bank pointed out that as part of its
agreement to support the Debtor's proposed plan of reorganization,
the Debtor has agreed to continue to make monthly $20,000 adequate
protection payments until confirmation of the plan. However,
according to Wells Fargo, the Debtor has not made the August
adequate protection payment. Wells Fargo further relates that
while it received on payment of $10,000 on Sept. 2, the remaining
payment has not been received.
About Raymond & Associates
Raymond & Associates, LLC, filed a chapter 11 petition (Bankr. S.D.
Ala. Case No. 15-01883) on June 16, 2015. The petition was signed
by Raymond H. LaForce, manager/member.
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 represented by Marion E. Wynne, Jr., Esq., at
Wilkins, Bankester, Biles & Wynne, PA.
Secured creditor Wells Fargo, N.A., is represented by Baker,
Donelson, Bearman, Caldwell & Berkowitz, PC, in Birmingham,
Alabama.
RBK TRUCKING: Hires Robert Schroeder as Accountant
--------------------------------------------------
R.B.K. Trucking, Inc. seeks authorization from the U.S. Bankruptcy
Court for the Middle District of Florida to employ Robert E.
Schroeder of Phelan, Schroeder & Taylor, LLC as certified public
accountant.
The Debtor requires Mr. Schroeder to:
(a) assist the Debtor in completing unfiled tax returns;
(b) help prepare the Debtor's monthly operating reports and any
other financial document required by the Court or U.S.
Trustee's Office; and
(d) do the Debtor's weekly payroll reports and returns.
Mr. Schroeder agreed to do all of the necessary accounting, and
most importantly the weekly payroll reports and returns, for a flat
$650 a week.
Mr. Schroeder will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Robert E. Schroeder, member of Phelan, Schroeder & Taylor, LLC,
assured the Court that the firm is a "disinterested person" as the
term is defined in Section 101(14) of the Bankruptcy Code and does
not represent any interest adverse to the Debtor and its estate.
Mr. Schroeder can be reached at:
Robert E. Schroeder
PHELAN, SCHROEDER & TAYLOR, LLC
50 Leanni Way, Unit D3
Palm Coast, FL 32137-4756
Tel: (386) 445-2400
Fax: (386) 445-3215
R.B.K. Trucking, Inc., sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. M.D. Fla. Case No. 16-01898) on May 20,
2016. The Debtor is represented by Jason A. Burgess, Esq., at The
Law Offices of Jason A. Burgess, LLC.
ROJESIE INC: Case Summary & 12 Unsecured Creditors
--------------------------------------------------
Debtor: Rojesie, Inc.
dba Parador Villas Sotomayor
PO Box 28
Adjuntas, PR 00601
Case No.: 16-08296
Chapter 11 Petition Date: October 17, 2016
Court: United States Bankruptcy Court
District of Puerto Rico (Ponce)
Judge: Hon. Edward A Godoy
Debtor's Counsel: Gloria Justiniano Irizarry, Esq.
JUSTINIANO'S LAW OFFICE
Ensanche Martinez
8 Calle A Ramirez Silva
Mayaguez, PR 00680
Tel: 787 831-2577
Fax: 787 805-7350
E-mail: justinianolaw@gmail.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Jesus R. Ramos Puente, president.
A copy of the Debtor's list of 12 unsecured creditors is available
for free at http://bankrupt.com/misc/prb16-08296.pdf
S&S SCREW: Court OKs Use of Regions Bank, IRS Cash Until Nov. 10
----------------------------------------------------------------
Judge Randal S. Mashburn of the U.S. Bankruptcy Court for the
Middle District of Tennessee authorized S&S Screw Machine Company,
LLC, to use cash collateral on an interim basis, through Nov. 10,
2016.
Regions Bank asserted a lien on the Debtor's assets to secure
obligations totaling approximately $3,364,485. Regions Bank
further asserted that all the Debtor's cash and cash equivalents,
are part of the collateral.
The Internal Revenue Service has a tax lien in the alleged amount
of $2,209,090. The debt is subordinate to the Regions Loan and is
undersecured or unsecured.
Judge Mashburn acknowledged that the Debtor's need to use cash
collateral is immediate and critical to enable the Debtor to
administer its Chapter 11 case, to continue to operate its business
in the normal course, and preserve the value of its estate for all
stakeholders.
Regions Bank and the IRS were granted replacement liens, which will
attach to the same extent and with the same priority as they
enjoyed prior to the Petition Date, to the extent of any
diminution in value of the collateral and cash collateral in all of
the Debtor’s post-petition assets of the same kind and
description as the collateral.
The Debtor was directed to maintain all necessary insurance for its
business and assets, in accordance with the obligations under the
Regions Loan, naming Regions Bank as loss payee and additional
insured thereto.
A final hearing on the Debtor's Motion is scheduled on Nov. 10,
2016 at 9:30 a.m. The deadline for the filing of objections to the
Debtor's Motion is set on Nov. 9, 2016 at 4:00 p.m.
A full-text copy of the Interim Order, dated Oct. 14, 2016, is
available at
http://bankrupt.com/misc/S&SScrewMachine2016_216bk06829_60.pdf
Regions Bank is represented by:
Walter N. Winchester, Esq.
WINCHESTER, SELLERS, FOSTER & STEELE, PC
Suite 1000, First Tennessee Plaza
Knoxville, TN 37929
E-mail: wwinchester@wsfs-law.com
About S&S Screw Machine Company
S&S Screw Machine Company, LLC, doing business as S&S - Precision,
filed a chapter 11 petition (Bankr. M.D. Tenn. Case No. 16-06829)
on Sept. 24, 2016. The petition was signed by Lawrence J. Battle,
authorized member. The Debtor is represented by Phillip G. Young,
Jr., Esq., at Thompson Burton PLLC. The case is assigned to Judge
Randal S. Mashburn. The Debtor estimated assets and liabilities at
$1 million to $10 million at the time of the filing.
SAAD INC: Seeks Access to Cash Collateral Until Dec. 31
-------------------------------------------------------
Saad, Inc., filed an expedited motion asking the U.S. Bankruptcy
Court to enter an order authorizing it to use cash collateral
through and including Dec. 31, 2016.
Judge Joan N. Feeney immediately entered an interim order
authorizing the use of cash collateral pending a continued hearing
on Nov. 9, 2016 at 10:45 a.m. The deadline for the filing of
objections to the Debtor's use of cash collateral is Nov. 8.
Saad, Inc., owns and operates a gas station, which has a value of
$1,200,000 with a first mortgage to TD Bank in the amount of
$503,638. The gas station is further encumbered by the City of
Brockton in the amount of $24,000 and an execution by Cape Cod Gas
Co., Inc. in the amount of $187,000.
The Debtor seeks authority to use its cash on hand and income
generated by the operation of the Debtor, which may constitute the
cash collateral of lienholders in order to maintain and operate the
properties. The relief requested, the Debtor tells the Court, is
necessary to permit the Debtor to continue its usual operations and
to preserve the value of the buildings and its bankruptcy estate.
The Debtor submitted a budget showing estimated monthly income and
expenses. The Budget lists the ordinary costs and expenses
necessary to maintain the property. The Debtor projects gross
profit of $17,545 in October, $16,846 in November and $15,385 in
December. Total expenditures would be $8,025 in October, $8,341 in
November and $3,735 in December. Debt service to TD Bank would be
$5,107 per month.
The Debtor says it generates sufficient cash flow to pay the
expenses necessary to maintain and preserve the property. Absent
the use of the Cash Collateral to pay the expenses set forth in the
Budget, the Debtor believes the value of the property will
diminish.
A copy of the Budget is available at:
http://bankrupt.com/misc/mab16-13691_17_Cash_Budget_SAAD.pdf
The Debtor proposes to grant the lienholder's replacement liens on
the same types of postpetition property of the estate against which
the lienholders held liens as of the Petition Date. Based upon the
payments from Debtor and the granting of the replacement liens to
each of the lienholders, the Debtor asserts that lienholders are
more than adequately protected for the Debtor's proposed use of the
cash collateral during the budget period.
About Saad, Inc.
Saad, Inc., owns and operates a gas station located at 899 Belmont
Street, Brockton, Massachusetts.
Saad, Inc., filed a chapter 11 petition (Bankr. D. Mass. Case No.
16-13691) on Sept. 27, 2016. The petition was signed by Yacoub G.
Saad, president. The case is assigned to Judge Joan N. Feeney.
The Debtor disclosed total assets at $1.26 million and total
liabilities at $734,638.
The Debtor is represented by Norman Novinsky, Esq., at Novinsky &
Associates.
The Debtor continues to operate as a debtor-in-possession pursuant
to Sections 1107 and 1108 of the Bankruptcy Code. No official
committee of creditors has been appointed in the case.
SEMLER SCIENTIFIC: Greg Garfield Quits as Director
--------------------------------------------------
Greg S. Garfield, a member of Class I of the Board of Directors of
Semler Scientific, Inc., notified the Board of his resignation from
the Board, including from its Compensation Committee and Nominating
Committee, effective as of Oct. 12, 2016. Mr. Garfield's decision
to resign did not involve any disagreement with Semler Scientific,
Inc., its management or the Board.
The Board accepted Mr. Garfield's resignation and in connection
therewith, effective Oct. 13, 2016, reduced the size of the Board
from eight to seven members, and the size of Class I from three to
two members. The Board also appointed, upon the recommendation of
the sole remaining member of the Nominating Committee, current
director, Dr. Abbie Leibowitz, to fill the vacancies on the
Compensation Committee and Nominating Committee created by Mr.
Garfield’s departure.
About Semler Scientific
Semler Scientific, Inc., provides diagnostic and testing services
to healthcare insurers and physician groups. The Portland,
Oregon-based Company develops, manufactures and markets
proprietary products and services that assist healthcare providers
in evaluating and treating chronic diseases.
Semler Scientific reported a net loss attributable to common
stockholders of $8.50 million on $7 million of total revenue for
the year ended Dec. 31, 2015, compared to a net loss attributable
to common stockholders of $4.51 million on $3.63 million of total
revenue for the year ended Dec. 31, 2014.
As of June 30, 2015, the Company had $3.06 million in total assets,
$5.59 million in total liabilities and a $2.53 million total
stockholders' deficit.
BDO USA, LLP, in New York, New York, issued a "going concern"
qualification on the consolidated financial statements for the year
ended Dec. 31, 2015, citing that the Company has negative working
capital, a deficit in stockholders' equity, recurring losses from
operations and expects continuing future losses that raise
substantial doubt about its ability to continue as a going concern.
SHULL PLUMBING: Has Until Nov. 30 to Use Libertyville Bank Cash
---------------------------------------------------------------
Judge Jacqueline P. Cox of the U.S. Bankruptcy Court for the
Northern District of Illinois authorized Shull Plumbing, Inc., to
use cash collateral until Nov. 30, 2016.
Libertyville Bank & Trust Co. asserted secured claims against some
or all of the Debtor's assets, including the Debtor's cash and
accounts receivable.
Libertyville Bank was granted replacement liens upon, and security
interests in, the Debtor's post-petition cash and accounts
receivable in the same priority as Libertyville Bank's existing
prepetition liens.
A status hearing for the continued use of cash collateral is
scheduled on Nov. 30, 2016 at 10:00 a.m.
A full-text copy of the Order, dated Oct. 14, 2016, is available at
http://bankrupt.com/misc/ShullPlumbing2015_1538005_62.pdf
About Shull Plumbing
Shull Plumbing, Inc., filed a chapter 11 petition (Bankr. N.D. Ill.
Case No. 15-38005) on Nov. 8, 2015. The petition was signed by
Sheldon J. Shull, president. The Debtor is represented by Joseph
E. Cohen, Esq., at Cohen & Krol. The Debtor estimated assets at
$100,001 to $500,000 and liabilities at $500,001 to $1 million.
SIDNEY TRANSPORTATION: Can Use PNC Bank, Bemus Cash on Final Basis
------------------------------------------------------------------
Judge John Gustafson of the U.S. Bankruptcy Court for the Northern
District of Ohio, authorized Sidney Transportation Services, LLC,
to use cash collateral on a final basis.
The Debtor named PNC Bank, National Association; Karl E. and Judith
B. Bemus, also known as Bemus; and Central States Southeast and
Southwest Areas Pension Fund, and Arthur H. Bunte, Jr., as Trustee,
also known as Central States, as parties who may claim an interest
in the Debtor's cash collateral.
The Court found that only PNC Bank and Bemus were entitled to
adequate protection for their claimed interest in the Debtor's cash
collateral.
The Debtor is indebted to PNC Bank in the original principal amount
of $200,000. PNC Bank was granted a blanket security interest in
the Debtor's personal property.
The Debtor was directed to make monthly adequate protection
payments to PNC Bank in the amount of $1,975, and to Bemus in the
amount of $1,863, beginning on Aug. 1, 2016.
PNC Bank and Bemus were granted replacement liens to the same
extent, validity and priority as existed on the Petition Date under
their respective Loan and Security Documents.
The Debtor was authorized to use cash collateral from the Petition
Date, to the earliest to occur of:
(a) the confirmation, conversion or dismissal of the Chapter
11 case;
(b) the Debtor's unauthorized use of the Cash Collateral;
(c) the Debtor ceasing operation of its business as a
Debtor-In-Possession under the Bankruptcy Code;
(d) the date of entry of a Court Order terminating the Final
Order for cause;
(e) entry of an Order granting either PNC Bank or Bemus relief
from the automatic stay; or
(f) a specific Order of the Court terminating the Final
Order.
A full-text copy of the Final Order, dated Oct. 14, 2016, is
available at
http://bankrupt.com/misc/SidneyTransportation2016_1632270jpg_79.pdf
About Sidney Transportation Services
Sidney Transportation Services, LLC, sought protection under
Chapter 11 of the Bankruptcy Code (Bankr. N. D. Ohio Case No.
16-32270) on July 18, 2016. The petition was signed by Steven
Woodruff, owner/managing member. The case is assigned to Judge
John P. Gustafson. The Debtor is represented by Eric R. Neuman,
Esq., at Diller and Rice, LLC. At the time of the filing, the
Debtor estimated its assets at $500,000 to $1 million and debt at
$1 million to $10 million.
SILVER LAKE: Case Summary & Unsecured Creditor
----------------------------------------------
Debtor: Silver Lake L.P.
fdba Silver Lake Group of Angola, L.P.
23540 Reynolds Court
Clinton Township, MI 48036
Case No.: 16-12195
Chapter 11 Petition Date: October 17, 2016
Court: United States Bankruptcy Court
Northern District of Indiana (Fort Wayne Division)
Judge: Hon. Robert E. Grant
Debtor's Counsel: Daniel J. Skekloff, Esq.
HALLER & COLVIN, PC
444 E. Main Street
Fort Wayne, IN 46802
Tel: (260) 426-0444
Fax: (260) 422-0274
E-mail: dskekloff@hallercolvin.com
- and -
Scot T. Skekloff, Esq.
HALLER & COLVIN, PC
444 E. Main Street
Fort Wayne, IN 46802
Tel: (260) 426-0444
Fax: (260) 422-0274
E-mail: sskekloff@hallercolvin.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Mark D. Krueger, general partner.
The Debtor listed Astbury Water Technology, Inc., as its largest
unsecured creditor holding a claim of $34,345.
A full-text copy of the petition is available for free at:
http://bankrupt.com/misc/innb16-12195.pdf
SKYPEOPLE FRUIT: Gets NASDAQ Delisting Notice on Late 10-K Filing
-----------------------------------------------------------------
SkyPeople Fruit Juice, Inc., a producer of fruit juice
concentrates, fruit juice beverages and other fruit-related
products, on Oct. 14, 2016, disclosed that on October 12, the
Company received a delisting determination letter from the staff of
the Listing Qualifications Department of The NASDAQ Stock Market
LLC. The Determination Letter notified the Company that since it
had not filed its Annual Report on Form 10-K for the fiscal year
ended Dec. 31, 2015 and its Quarterly Reports on Form 10-Q for the
quarterly periods ended March 31, 2016 and June 30, 2016,
respectively, (together, the "Reports") by Oct. 11, 2016, the
deadline by which the Company was to file all Reports in order to
regain compliance with NASDAQ Listing Rule 5250(c)(1), the
Company's common stock is subject to delisting from The NASDAQ
Global Market.
The Determination Letter further noted that unless the Company
requested an appeal of the Staff's determination no later than 4:00
pm Eastern Time on October 19, 2016, trading of the Company's
common stock on The NASDAQ Global Market will be suspended at the
opening of business on October 21, 2016, and a Form 25-NSE would be
filed with the Securities and Exchange Commission (the "SEC")
removing the Company's securities from listing and registration on
The NASDAQ Stock Market.
The Company intends to timely request a hearing before the NASDAQ
Hearings Panel (the "Panel") under Listing Rule 5815(a) to present
its plan to regain compliance with the rule, which request will
automatically stay the delisting of the Company's securities for 15
calendar days from the deadline to request a hearing. In
connection with its request for a hearing, the Company also intends
to request a further stay of the suspension of trading and
delisting of the Company's common stock while the appeals process
is pending. The Panel will notify the Company of its decision if
it will allow the Company's common stock to continue to trade on
The NASDAQ Global Market pending the Panel's decision. The Panel
may, at its discretion, determine to continue the Company's listing
pursuant to an exception to Listing Rule 5815(a) for a maximum of
360 calendar days from the due date of the Form 10-K, which would
be through April 9, 2017; however, there can be no assurance that
the Panel will grant any or all of such exception.
As previously disclosed, on each of April 20, 2016, May 24, 2016
and August 17, 2016, the Company received a notification letter
from the staff of the Listing Qualifications Department of NASDAQ
indicating that the Company was not in compliance with NASDAQ's
continued listing requirements because the Company was not in
compliance with NASDAQ Listing Rule 5250(c)(1) with respect to the
Form 10-K and Form 10-Q Reports.
About SkyPeople Fruit Juice
SkyPeople Fruit Juice, Inc. (NASDAQ: SPU), a Florida company,
through its wholly-owned subsidiary Pacific Industry Holding Group
Co., Ltd. ("Pacific"), a Vanuatu company, and SkyPeople Juice
International Holding (HK) Ltd., a company organized under the laws
of Hong Kong Special Administrative Region of the People's Republic
of China and a wholly owned subsidiary of Pacific, holds 73.42%
ownership interest in SkyPeople Juice Group Co., Ltd. ("SkyPeople
(China)") and 100% ownership interest in SkyPeople Foods (China)
Co., Ltd. ("SkyPeople Foods China"). SkyPeople (China) and
("SkyPeople Foods China"), together with their operating
subsidiaries in China, are engaged in the production and sales of
fruit juice concentrates, fruit beverages, and other fruit related
products in the PRC and overseas markets. The Company's fruit
juice concentrates are sold to domestic customers and exported
directly or via distributors. Fruit juice concentrates are used as
a basic ingredient component in the food industry. Its brands,
"Hedetang" and "SkyPeople," which are registered trademarks in the
PRC, are positioned as high quality, healthy and nutritious end-use
juice beverages.
SMILES AND GIGGLES: Hires David Steen as Counsel
------------------------------------------------
Smiles and Giggles Health Plaza, LLC seeks authorization from the
U.S. Bankruptcy Court for the Middle District of Florida to employ
David W. Steen, P.A. as general bankruptcy counsel.
The law firm will be paid at these hourly rates:
David W. Steen $450
Associate/Contract
Attorney $300
Paralegal $160
Legal Assistants $140
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
The firm received $12,000 retainer prior to the petition date.
David Steen assured the Court that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code and does not represent any interest adverse to the Debtor and
its estate.
The firm can be reached at:
David W. Steen, Esq.
DAVID W. STEEN, P.A.
2901 W. Busch Blvd., Ste 311
Tampa, FL 33618
Tel: (813) 251-3000
E-mail: dwsteen@dsteenpa.com
About Smiles and Giggles
Smiles and Giggles Health Plaza, LLC, filed a chapter 11 petition
(Bankr. M.D. Fla. Case No. 16-08203) on Sept. 23, 2016. The Debtor
is represented by David W. Steen, Esq., at David W. Steen, P.A.
SNEED SHIPBUILDING: Wants Extent of IPFS Security Clarified
-----------------------------------------------------------
Sneed Shipbuilding, Inc., asks the U.S. Bankruptcy Court for the
Southern District of Texas to amend its Order authorizing the
Debtor to enter into an Insurance Premium Finance Agreement with
IPFS Corporation.
The Debtor relates that IPFS Corporation requested the Debtor to
seek the entry of an amended order to clarify its security. The
Debtor further relates that IPFS Corporation had insisted that the
Debtor clarify the extent of its lien as part of its ability to
finance the Debtor's coverage.
The Debtor seeks entry of an amended order clarifying that
notwithstanding anything to the contrary contained in any Order
approving secured financing in the case, the lien granted to IPFS
Corporation in connection with the Policies will be senior to any
security interests and/or liens granted to any other secured
creditors in the Debtor’s case.
The Debtor tells the Court that the policies will remain unchanged
from the policies set forth in the Insurance Motion. The Debtor
further tells the Court that they will bear total premiums of
$119,615, which total sum the Debtor cannot pay in cash at this
time.
The Debtor contends that its payment plan will not vary from the
proposed plan in the Insurance Motion. The Debtor proposes to make
nine monthly payments of $9,624 on a monthly basis beginning on
Nov. 1, 2016 with a cash down payment of $35,885.
A full-text copy of the Debtor's Motion, dated Oct. 14, 2016, is
available at
http://bankrupt.com/misc/SneedShipbuilding2016_1660014_217.pdf
About Sneed Shipbuilding
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 to serve on an 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.
SNEED SHIPBUILDING: Wants Plan Exclusivity Period Moved to Oct. 31
------------------------------------------------------------------
Sneed Shipbuilding, Inc. asks the U.S. Bankruptcy Court for the
Southern District of Texas to extend its exclusivity period to file
Chapter 11 plan through October 31, 2016. The Debtor's current
exclusivity period expire on October 17, 2016.
The Debtor submits that the potential resolution of the mediation
that was held on October 7, 2016, in relation to the issues between
the Debtor and Martin M. Sneed's estate, may pave a clear path to a
viable Chapter 11 plan. The mediation was attended by the Debtor,
the estate of Martin M. Sneed and Amegy Bank.
Although the Debtor believes that some of the contingencies that
presently make the preparation of a Chapter 11 plan unfeasible will
be resolved by the conclusion of the requested extended Exclusivity
period.
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.
SOUTHLAND PROPERTIES: Voluntary Chapter 11 Case Summary
-------------------------------------------------------
Debtor: Southland Properties, LLC
3120 Fairway Drive
Morgantown, WV 26508
Tel: 304-594-1898
Case No.: 16-01057
Chapter 11 Petition Date: October 17, 2016
Court: United States Bankruptcy Court
Northern District of West Virginia (Clarksburg)
Judge: Hon. Patrick M. Flatley
Debtor's Counsel: John Alexander Scott, Esq.
LAW OFFICE OF JOHN A. SCOTT
215 West Main Street, Suite 109
Clarksburg, WV 26301
Tel: 304-622-9300
Fax: 304-622-9305
E-mail: wvjas58@aol.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The Debtor did not include a list of its largest unsecured
creditors when it filed the petition.
ST. JOHN BATTLE CREEK: Asks for Cash Access Until December
----------------------------------------------------------
St. John/Battle Creek Owner, LLC, filed a motion asking the U.S.
Bankruptcy Court for the Eastern District of Michigan for approval
to use cash collateral.
The Debtor, which owns mobile home parks, says the majority of its
value arises from its ongoing operations and its ability to
continue collecting lot rent. Without authority to use cash
collateral, the Debtor believes it will suffer irreparable harm
because it will be forced to immediately shut down and force
low-income families out of their homes.
During the first 60 days of the case, the Debtor projects that it
will need to spend $40,198 to avoid immediate and irreparable
harm.
On the Petition Date, the Debtor, without admission, believes that
the cash collateral, as defined in 11 U.S.C. Sec. 363, consists of
cash and accounts receivable. At this time, the Debtor is unable
to provide the value of the cash collateral, because the
documentation and information is believed to be in the possession
of the state court receiver. The Debtor believes that all parties
will be advised of the value of the cash collateral when the
receiver provides an accounting to the Court pursuant to 11 U.S.C.
Sec. 543.
Before the Petition Date, the Debtor entered into a loan with Park
Capital Investments, LLC, and related security instruments. The
Debtor anticipates that PCI will assert a security interest in the
Debtor's cash collateral.
The Debtor requires the use of cash collateral to make payments as
are necessary for the continuation of its business as shown in its
proposed budget. The budget forecasts income from leases of
$37,000 per month and total expenses of $20,099 per month for
October to December.
As adequate protection under Sec. 363 and 361 of the Bankruptcy
Code, the Debtor will provide PCI replacement liens in the Debtor's
personal property and the proceeds and products thereof. As
additional adequate protection, the Debtor will pay all personal
property taxes, real property taxes, maintenance expenses and wages
in connection with preserving the property.
As part of its request to use cash collateral, the Debtor is
requesting that the Court allow it to escrow, on a monthly basis,
$5,000 into the client trust account of its proposed counsel to pay
the professional fees of legal counsel employed by the Debtor in
connection with the bankruptcy proceeding to the extent the fees
are allowed by the Court.
A copy of the Motion, along with the Budget, is available at:
http://bankrupt.com/misc/mieb16-53193_32_Cash_M_St_John.pdf
About the Debtor
St. John/Battle Creek Owner, LLC, owns and operates St. Johns
Mobile Home Park, which has over 100 lots.
St. John/Battle Creek Owner filed a Chapter 11 petition (Bankr.
E.D. Mich. Case No. 16-53193) on Sept. 25, 2016. The petition was
signed by Mark D. Krueger, member. The Hon. Marci B McIvor is the
case judge.
The Debtor estimated $1 million to $10 million in assets and
$10 million to $50 million in debt.
Related entities PC Acquisition LLC, Battle Creek Realty, LLC,
Denmark Management Company and Denmark Services, LLC,
simultaneously sought Chapter 11 protection.
The Debtors tapped Ernest Hassan, Esq., at Stevenson & Bullock,
P.L.C., in Southfield, Michigan as counsel.
No trustee or examiner has been appointed in the cases and no
committee has been appointed or designated.
ST. MICHAEL'S MEDICAL: Taps Risk Transfer as Consultant
-------------------------------------------------------
Saint Michael's Medical Center, Inc., et al. and the Official
Committee of Unsecured Creditors filed a joint application to the
U.S. Bankruptcy Court for the District of New Jersey to employ Risk
Transfer Strategies, LLC as consultant regarding Chestnut Risk
Services, Ltd. ("Chestnut Risk"), a wholly-owned captive insurance
company through which Saint Michael's Medical Center, Inc. is
self-insured.
The Debtors and the Committee require Risk Transfer to:
(a) assess Chestnut Risk's structure;
(b) define opportunities to transfer Chestnut Risk liabilities
with associated assets to a third party or incumbent
reinsurer;
(c) evaluate risk transfer vehicles such as Loss Portfolio
Transfer, Novation or Sale;
(d) determine the value of the Debtors' interest in Chestnut
Risk, including by identifying potential suitors; and
(e) provide other services as may be necessary to carry out the
foregoing and provide a solution to monetize the Debtors'
and their estates' interest in Chestnut Risk, maximize that
interest, and provide options to liquidate that interest.
Risk Transfer's hourly rate will be $300, and expenses will be
subject to prior approval by the Debtors and the Committee.
Risk Transfer will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Mario J. Vitiello, president of Risk Transfer, 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.
Risk Transfer can be reached at:
Mario J. Vitiello
RISK TRANSFER STRATEGIES, LLC
8 Patrick Drive
Manahawkin, NJ 08050
Tel: (609) 756-5981
About Saint Michael's Medical Center
Saint Michael's Medical Center, Inc., was incorporated in 2008 to
acquire St. Michael's Medical Center and 2 other now defunct
hospitals (Saint James Hospital and Columbus Hospital) was acquired
from Cathedral Healthcare System Inc., a New Jersey nonprofit.
SMMC is a second tier subsidiary of Trinity Health Corporation. The
immediate sole corporate member of SMMC is Maxis Health System, a
Pennsylvania not-for-profit corporation.
Established by the Franciscan Sisters of the Poor in 1867, St.
Michael's Medical Center is a 357- bed licensed regional
tertiary-care, teaching, and research center in the heart of
Newark, New Jersey's business and educational district and is
accredited by The Joint Commission.
On Aug. 10, 2015, SMMC Inc. and three affiliated debtors each filed
a voluntary petition for relief under Chapter 11 of the U.S.
Bankruptcy Code in the U.S. Bankruptcy Court for the District of
New Jersey. The cases are pending before the Honorable Vincent F.
Papalia, and the Debtors have requested that their cases be jointly
administered under Case No. 15-24999.
The Debtors tapped Cole Schotz P.C. as bankruptcy counsel;
EisnerAmper LLP as financial advisor; and Prime Clerk LLC as claims
and noticing agent.
SMMC estimated $100 million to $500 million in assets and debt.
United States Trustee Region 3, notified the United States
Bankruptcy Court for the District of New Jersey of the appointment
of Susan N. Goodman, RN JD, as patient care ombudsman in the
Chapter 11 case of Saint Michael's Medical Center, Inc., and its
debtor affiliates.
The U.S. Trustee for Region 3, appointed seven creditors of Saint
Michael's Medical Center Inc. and its affiliates to serve on the
official committee of unsecured creditors. Andrew H. Sherman,
Esq., Boris I. Mankovetskiy, Esq., and Lucas F. Hammonds, Esq., at
Sills Cummis & Gross PC, represent the Committee.
STARCO VENTURES: San Remo's Disclosures Conditionally Okayed
------------------------------------------------------------
The Hon. K. Rodney May of the U.S. Bankruptcy Court for the Middle
District of Florida has conditionally approved the disclosure
statement filed by creditor San Remo Condominium Association of
Reddington Shores, Inc., on Sept. 28, 2016, for Starco Ventures,
Inc.
A hearing to consider the final approval of the Disclosure
Statement and the Confirmation of the plan of reorganization
proposed by San Remo Condominium was scheduled to be held on Oct.
13, 2016, at 1:30 p.m.
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
pursuant to Bankruptcy Code Section 330, must file motions or
applications for the allowance of the claims with the Court no
later than 14 days after the entry of the Oct. 6, 2016 court
order.
About Starco Ventures
Headquartered in Seminole, Florida, Starco Ventures, Inc., filed
for Chapter 11 bankruptcy protection (Bankr. M.D. Fla. Case No.
13-05326) on April 24, 2013, estimating its assets at between $1
million and $10 million and debts at between $10 million and $50
million. The petition was signed by Antoinette Van Putte,
president.
Judge K. Rodney May presides over the case.
Leon A. Williamson, Jr., Esq., at Leon A. Williamson, Jr., P.A.,
serves as the Debtor's bankruptcy counsel.
Maynard D. Luetgert was appointed Chapter 11 Trustee of Starco
Ventures, Inc.
SWORDS COMPANY: Taps Dunham Hildebrand as Legal Counsel
-------------------------------------------------------
Swords Group LLC seeks approval from the U.S. Bankruptcy Court for
the Middle District of Tennessee to hire legal counsel in
connection with its Chapter 11 case.
The Debtor proposes to hire Dunham Hildebrand, PLLC to give legal
advice regarding its duties, prepare its plan of reorganization,
and file legal action to recover assets of its bankruptcy estate.
The hourly rates for the firm's attorneys range from $250 to $300.
Meanwhile, paralegals are paid $150 per hour.
Alex Payne, Esq., at Dunham Hildebrand, disclosed in a court filing
that the firm is "disinterested" as defined in section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
Griffin S. Dunham, Esq.
Alex Payne, Esq.
Dunham Hildebrand, PLLC
2510 Franklin Pike, Suite 210
Nashville, TN 37204
Tel: 615-933-5850
Email: griffin@dhnashville.com
Email: alex@dhnashville.com
About Swords Group
Swords Group, LLC sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. M.D. Tenn. Case No. 16-03837) on May 26,
2016. The petition was signed by Jerry Swords, president.
The Debtor is represented by Griffin S. Dunham, Esq., at Dunham
Hildebrand, PLLC. The case is assigned to Judge Marian F.
Harrison.
At the time of the filing, the Debtor estimated its assets and
liabilities at $1 million to $10 million.
TEXAS ROAD ENTERPRISES: Names Robert Nisenson as Attorney
---------------------------------------------------------
Texas Road Enterprises, Inc., seeks authorization from the U.S.
Bankruptcy Court for the District of New Jersey to employ Robert C.
Nisenson as attorney.
The Debtor desires to retain the law firm under a general retainer
since it is anticipated that extensive legal services will be
required.
Mr. Nisenson will be paid $250 per hour for services rendered.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Mr. Nisenson was paid a retainer of $4,000 and costs of $1,717.
Mr. Nisenson assured the Court that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code and does not represent any interest adverse to the Debtor and
its estate.
The firm can be reached at:
Robert C. Nisenson, Esq.
ROBERT C. NISENSON, LLC
10 Auer Court
East Brusnwick, NJ 08816
Tel: (732) 238- 8777
About Texas Road Enterprises, Inc.
Texas Road Enterprises, Inc. filed a Chapter 11 petition (Bankr.
D.N.J. Case No. 16-25995) on August 19, 2016, and is represented by
Robert C. Nisenson, Esq. in East Brunswick, New Jersey.
At the time of filing, the Debtor had $1.50 million in total assets
and $992,000 in total liabilities.
The petition was signed by Michael Giordano, authorized
representative.
The Debtor lists Township of Marlboro Tax Collector as its largest
unsecured creditor holding a claim of $25,000.
A full-text copy of the petition is available for free at
http://bankrupt.com/misc/njb16-25995.pdf
THO VAN PHAN: U.S. Trustee Forms 5-Member Creditors' Committee
--------------------------------------------------------------
The Office of the U.S. Trustee on Oct. 14 appointed these creditors
of Tho Van Phan to serve on the official committee of unsecured
creditors.
The committee members are:
(1) B.A.K. Precious Metals, Inc.
Contact Person: Arman Karaoglanyan
640 S. Hill St., Suite 351
Los Angeles, CA 90014
c/o Nico N. Tabibi, Esq.
Law Offices of Nico N. Tabibi, APC
9454 Wilshire Blvd., Penthouse
Beverly Hills, CA 90212
(2) P & P Precious Metals, Inc.
Pedram Shamekn, Officer and Director
640 S. Hill St., Suite 450
Los Angeles, CA 90014
c/o Nico N. Tabibi, Esq.
Law Offices of Nico N. Tabibi, APC
9454 Wilshire Blvd., Penthouse
Beverly Hills, CA 90212
(3) PK La Shayane Jewelry, Inc.
Shayne Omrani, Officer and Director
440 S. Broadway St., Ste. G-1
Los Angeles, CA 90014
c/o Nico N. Tabibi, Esq.
Law Offices of Nico N. Tabibi, APC
9454 Wilshire Blvd., Penthouse
Beverly Hills, CA 90212
(4) Gem Art, Inc.
Pulin Tania, President
608 S. Hill Street, Suite 1112
Los Angeles, CA 90014
(5) Gold Depot, LLC
Kevork Kacharian, President/Owner
640 S. Hill St., 250
Los Angeles, CA 90014
c/o Fred Minassian, Esq.
101 N. Brand Blvd., 1970
Glendale, CA 91203
Official creditors' committees have the right to employ legal and
accounting professionals and financial advisors, at a debtor's
expense. They may investigate the debtor's business and financial
affairs. Importantly, official committees serve as fiduciaries to
the general population of creditors they represent.
About Tho Van Phan
Tho Van Phan sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. C.D. Cal. Case No. 16-13873) on September 14, 2016.
The Debtor is represented by Michael R. Totaro, Esq., at Totaro &
Shanahan.
TOTAL COMM SYSTEMS: J D Factors Agreement Has Final Approval
------------------------------------------------------------
Chief Judge Eric L. Frank approved, on a final basis, the
postpetition factoring agreement pursuant to which J D Factors, LLC
will purchase debtor Total Comm Systems, Inc.'s postpetition
accounts and extend a factoring arrangement.
The Debtor and J D Factors entered into a factoring and security
agreement on Sept. 16, 2009, to provide funding for the Debtor's
business. The Factor agreed to purchase accounts from the Debtor
based upon its eligible invoices and other information. The
Debtor's obligations to the Factor under the security agreement
were secured by various assets of the Debtor, including "accounts,
general intangibles, chattel paper, electronic chattel paper,
instruments, deposit accounts, investment property, letters of
credit, letters of credit rights, all proceeds of the foregoing and
all books, records and computer data relating to the foregoing."
The Factor perfected its security interest in the assets of Debtor
by, among other things, filing a UCC financing statement against
the Debtor on Sept. 17, 2009, which has been subsequently renewed
by timely continuation statement.
The Debtor avers that an immediate and critical need exists for the
Debtor to obtain additional funds to continue the operation of the
business. Without such funds, the Debtor and its estate will
suffer immediate and irreparable harm.
The Debtor has obtained interim authority to use cash collateral;
and interim authority of DIP factoring, however, the Debtor
requires postpetition date financing on a final basis under Section
364 of the Bankruptcy Code.
The Court finds that, on a final basis that the terms of such
Post-Petition Factoring Agreement are fair and reasonable under the
circumstances, reflect the Debtor's exercise of prudent business
judgment consistent with its fiduciary duties, and are supported by
reasonably equivalent value and fair consideration. Factor has
acted in good faith in agreeing to purchase Debtor's post-petition
Accounts pursuant to the Post-Petition Factoring Agreement and in
negotiating the terms of such factoring.
Accordingly, Factor is an "entity that is extending credit in good
faith," as that phrase is used in Sec. 364(e) of the Bankruptcy
Code, and both Factor and the Debtor are entitled to the
protections afforded under Sec. 364(e) of the Bankruptcy Code.
The Court finds, on a final basis, that based on the Debtor's
Motion and other filings to date, and in light of the Debtor's
current financial situation as evidenced by the filing of the
voluntary petition for relief, the Debtor is unable to obtain an
adequate unsecured revolving credit facility allowable under Sec.
503(b)(l) of the Bankruptcy Code to be treated as an administrative
expense of the estate pursuant to Sec. 364(b) of the Bankruptcy
Code.
Factor has conditioned the financing upon the grant of replacement
liens on its existing collateral with the same priority as it bad
prepetition and a duly perfected postpetition lien on all accounts
subject only to the lien of the Internal Revenue Service and a
postpetition lien against other Collateral. The lien on Collateral
for which Factor did not have a prepetition security interest shall
be on a priority basis subject to the liens of existing creditors,
as to their respective class of assets to the extent such existing
creditors actually have been granted a security interest by the
Debtor (or its prepetition predecessor) in such specific class of
assets, pending further order of the Court.
"The Motion is hereby granted on a final basis, and the
arrangements for postpetition factoring between Debtor and Factor
are approved by this Court subject to the terms and condition set
forth in the PostPetition Factoring Agreement and this Order,"
Judge Frank ruled.
"The terms and conditions of the Post-Petition Factoring Agreement
are hereby approved subject to the provisions of the Court's
Interim Order dated September 1, 2016. The Debtor is hereby
authorized to enter into the Post-Petition Factoring Agreement and
to incur the indebtedness provided for therein (the "Post-Petition
Debt"), which the Debtor may utilize in accordance with this Order
and the Post-Petition Factoring Agreement and other DIP documents.
The Post-Petition Debt, subject to the terms and conditions set
forth in this Order, the Post-Petition Factoring Agreement and its
exhibits, shall he used only for working capital and other expenses
incurred in the ordinary course of the Debtor's business, as well
as fees to the United States Trustee consistent with any part and
future cash collateral orders entered or that may be entered by
this Court."
A copy of the Final Order is available at:
http://bankrupt.com/misc/paeb16-15530_Cash_Ord_Total_Comm.pdf
About Total Comm Systems
Total Comm Systems, Inc., is a provider of engineering,
construction, excavation, installation, and maintenance services
for the telecommunications industry.
Total Comm Systems filed a chapter 11 petition (Bankr. E.D. Pa.
Case No. 16-15530) on Aug. 3, 2016. The petition was signed by
Michael H. Pollitt, president.
The Debtor estimated assets of $500,000 to $1 million and
liabilities of $1 million to $10 million at the time of the
filing.
The Debtor tapped Bielli & Klauder, LLC, as counsel; and Bambach
Enterprises LLC d/b/a Bambach Advisors, as financial advisor.
The Debtor is a debtor-in-possession and no trustee has been
appointed in the Chapter 11 case.
TOWN OF TUXEDO, NY: Moody's Cuts GO Rating to Ba1, Outlook Negative
-------------------------------------------------------------------
Moody's Investors Service has downgraded the Town of Tuxedo, NY's
general obligation rating to Ba1 from Baa2. The outlook remains
negative. The town has $3.1 million in general obligation bonds
outstanding. The downgrade to Ba1 and reflect declines in the
town's operating liquidity and financial reserves during fiscal
2015. Further, the rating reflects the town's manageable debt
burden and strong resident wealth.
Rating Outlook
The negative outlook reflects Moody's position that the town will
be challenged to produce structurally balanced budgets and improve
reserve levels moving forward given a lack of financial
flexibility.
Factors that Could Lead to an Upgrade (Remove the Negative
Outlook)
Trend of structurally balanced budgets that lead to improvement
in reserves
Material increases in the tax base
Factors that Could Lead to a Downgrade
Further declines in financial reserves in fiscal 2016
Continued tax base contraction
Issuance of cash flow notes to meet liquidity needs
Legal Security
The bonds are secured by the town's general obligation pledge as
limited by the Property Tax Cap-Legislation (Chapter 97 (Part A) of
the Laws of the State of New York, 2011).
Use of Proceeds
Not applicable.
Obligor Profile
The town of Tuxedo is located in Orange County, 35 miles north of
New York City and had a 2014 population of 3,602.
Methodology
The principal methodology used in this rating was US Local
Government General Obligation Debt published in January 2014.
TRI-G GROUP: Plan Filing Date Extended Through Nov. 30
------------------------------------------------------
Judge Benjamin A. Kahn of the U.S. Bankruptcy Court for the Middle
District of North Carolina extended the exclusive period of Tri-G
Group, LLC, d/b/a Quarry Hills Golf and Country Club to file a Plan
of Reorganization and Disclosure Statement to November 30, 2016,
and its exclusive period to have the plan of reorganization
confirmed to January 29, 2017.
The Troubled Company Reporter, on Aug. 29, 2016, reported that the
Debtor told the Court that it needs an additional 90 days to fully
investigate whether the selling the remaining tract of real
property would be beneficial to the Estate, as the Debtor had
already sold the largest tract for $781,000 from the two pieces of
real property owned by the Debtor.
About Tri-G Group
Tri-G Group, LLC, sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. M.D.N.C. Case No. 16-10441) on May 4, 2016.
The petition was signed by Guy G. Gulick, manager. The Debtor is
represented by Charles M. Ivey, III, Esq., and Charles (Chuck)
Marshall Ivey, IV, Esq., at Ivey, McClellan, Gatton & Siegmund,
LLP. The case is assigned to Judge Benjamin A. Kahn. At the time of
filing, the Debtor estimated its total assets at $863,152 and
total debts at $1.44 million.
TRIDENT BRANDS: Recurring Net Losses Raise Going Concern Doubt
--------------------------------------------------------------
Trident Brands Incorporated filed with the U.S. Securities and
Exchange Commission its quarterly report on Form 10-Q, disclosing a
net loss of $574,288 on $17,028 of revenues for the three-months
ended Aug. 31, 2016, compared to a net loss of $721,883 on $9,915
of revenues for the same period in 2015.
For the nine months ended Aug. 31, 2016, the Company listed a net
loss of $2 million on $241,053 of revenues, compared to a net loss
of $1.90 million on $11,555 of revenues for the same period in the
prior year.
The Company's balance sheet at Aug. 31, 2016, showed total assets
of $3.01 million, total liabilities of $4.74 million and
stockholders' deficit of $1.73 million.
As shown in the accompanying financial statements, the Company has
incurred net losses of $5,790,925 since inception. This condition
raises substantial doubt as to its ability to continue as a going
concern. In response to these conditions, the Company may raise
additional capital through the sale of equity securities, through
an offering of debt securities or through borrowings from financial
institutions or individuals.
A full-text copy of the Company's Form 10-Q is available at:
https://is.gd/QOu5SU
Trident Brands Incorporated (f/k/a Sandfield Ventures Corp.) was
initially formed to engage in the acquisition, exploration and
development of natural resource properties, but has since
transitioned and is now focused on branded consumer products and
food ingredients.
The Company maintains a compelling portfolio of branded consumer
products including nutritional products and supplements under the
Everlast(R) and Brain Armor(R) brands, and functional food
ingredients under the Oceans Omega brand. These brands are focused
on the fast growing supplements and nutritional product and heart
and brain health categories, supported by an established contract
manufacturing, supply chain and research and development
infrastructure, and a solid and proactive management team, board
of directors and advisors with many years of experience in related
categories.
TRIUMPH GROUP: Moody's Lowers Corporate Family Rating to Ba3
------------------------------------------------------------
Moody's Investors Service downgraded the ratings of Triumph Group,
Inc., including the Corporate Family Rating to Ba3 from Ba2, the
Probability of Default Rating to Ba3-PD from Ba2-PD, and the senior
unsecured notes to B1 from Ba3. This concludes the review for
downgrade that began on Sept. 19, 2016.
Issuer: Triumph Group, Inc.
These ratings were downgraded:
Corporate Family Rating, downgraded to Ba3 from Ba2
Probability of Default Rating, downgraded to Ba3-PD from Ba2-PD
Speculative Grade Liquidity Rating affirmed at SGL-3
$375 million senior unsecured notes due 2021, downgraded to B1
(LGD5) from Ba3 (LGD5)
$300 million senior unsecured notes due 2022, downgraded to B1
(LGD5) from Ba3 (LGD5)
Outlook, Changed To Negative from Rating Under Review
RATINGS RATIONALE
The downgrade reflects continued earnings pressures, particularly
in Triumph's structures segment, which are expected to result in a
weakening credit profile with elevated leverage metrics and muted
cash flow generation. The downgrade also incorporates sales
pressures stemming from declining production rates on key programs
as well as concerns around opportunities for Triumph to win new
content and consistently grow organic sales given the current phase
of the aerospace cycle.
Over the balance of fiscal 2017, Moody's expects declining
production rates on the 747, G450/550 and A330, to result in an
organic sales contraction in the high single-digits. The ramp-up
of developing programs (Bombardier 7000/8000, Embraer E-Jet) on
which Triumph has meaningful content will help mitigate sales
pressures in fiscal 2018. That said, the company's ability to
stabilize sales and ultimately grow revenues after fiscal 2018
remains very much to be proven. Triumph's backlog has declined
materially over the last 12 months (June 2016 backlog of $4 billion
is down almost 20% over the prior year) and highlights the need for
the company to improve its competitive standing and reduce its cost
structure. The company is currently engaged in a multi-year
restructuring program and we believe prospects for margin
improvement over the next few years are favorable (company-wide
EBITDA margins in low-teens appears achievable) although near-term
margins will likely weaken due to restructuring costs and charges
associated with de-risking across multiple platforms. As of June
2016, Moody's adjusted Debt-to-EBITDA was 5.4x (includes 2x of
pension adjustments) and we expect leverage to peak at around 7.0x
in early fiscal 2018 as earnings trough (pensions are about 25% of
Moody's adjusted debt). Thereafter, earnings growth and improved
operational efficiencies (driven by the company's multi-year
restructuring program) are expected to support a gradual reduction
in leverage and strengthening profitability metrics.
The negative outlook reflects expectations that continued earnings
pressures over the near-term will result in a weakening of
Triumph's credit metrics and an elevated leverage profile. The
negative outlook also incorporates the need for Triumph to
demonstrate its ability to win new business and fundamentally
reduce its cost structure over the next 12 to 18 months.
Upward rating momentum is unlikely at this time given Triumph's
current revenue and earnings trajectory and elevated leverage
levels. A demonstrated ability to win new business and grow EBITDA
margins towards the low-teen context would be a prerequisite for
any upgrade. The ratings could also be upgraded if Triumph were to
sufficiently lower leverage such that Debt-to-EBITDA on a Moody's
adjusted basis was sustained below 5.0 times with FCF/Debt
consistently in the low-to-mid single digits.
Downward rating pressure would be prompted by an inability to win
new content on long-lived platforms or by an unanticipated rate cut
in any of Triumph's existing platforms, or by delays and cost
overages in new programs (particularly the Global 7000/8000 and
E-Jet). Expectations of leverage remaining elevated with an
inability to take measures to sustain Debt-to-EBITDA in the low 5x
range, negative free cash flow beyond fiscal 2017, or EBITDA
margins remaining in the low double-digits would also likely
pressure the ratings downwards. An absence of measured progress
toward cost reduction at least offsetting margin contraction of the
last several years could also result in a downgrade.
Triumph designs, engineers, manufactures, repairs, overhauls and
distributes a broad portfolio of aero-structures, aircraft
components, accessories, subassemblies and systems. The company
serves commercial aerospace (57% of sales), military (23%),
business jet (17%) and regional and other markets (3%). Revenues
were approximately $3.8 billion for the twelve months ended
June 30, 2016.
The principal methodology used in these ratings was Global
Aerospace and Defense Industry published in April 2014.
TROCOM CONSTRUCTION: Hires Petrowsky as Auctioneer
--------------------------------------------------
Trocom Construction Corp. seeks authority from the U.S. Bankruptcy
Court for the Eastern District of New York to employ Petrowsky
Auctioneers, Inc. as liquidation consultant and auctioneer to the
Debtor.
Trocom Construction requires Petrowsky to:
a. offer the Debtor's assets consisting of heavy construction
equipment and vehicles, together with any additional items
delivered by the Debtor to the auction site for sale, in
whole or in part, at one or more unreserved public
auctions;
b. advertise the auction, including through direct mail
brochures, display advertisements, advertisements in trade
publications, newspapers and internet advertisements;
c. collect the full proceeds from the sale of the assets,
after withholding for its benefit all amounts payable to
the Auctioneer, including commission and any advances,
making payment of the remaining proceeds to the Debtor
within 7 days after the Public Auction in accordance with
the terms of the Bankruptcy Court order approving the sale;
and
d. follow any other terms and conditions of sale as deemed
necessary to the orderly and efficient sale of the assets
or approved by the Court.
Petrowsky will be paid a commission 10% of the gross sales price of
the Debtor's assets.
Samuel Piotrkowski, member of Petrowsky Auctioneers, Inc., 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.
Petrowsky can be reached at:
Samuel Piotrkowski
PETROWSKY AUCTIONEERS, INC.
4000 Pine Lake Road
Lincoln, NE 68516
Tel: (402) 421-3631
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, New York. 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 disclosed total assets of $32,462,383 and total
liabilities of $17,184,837 as of the Chapter 11 filing.
No official committee of unsecured creditors has been appointed in
the case.
TUSCANY ENERGY: Allowed to Use Armstrong Bank Cash Until Nov. 10
----------------------------------------------------------------
Judge Erik P. Kimball of the U.S. Bankruptcy Court for the Southern
District of Florida authorized Tuscany Energy, LLC, to use
Armstrong Bank's cash collateral on an interim basis, through Nov.
10, 2016.
The Debtor was allowed to use cash collateral to pay for actual and
necessary ordinary course operating expenses consistent with the
approved Budget.
The approved Budget covered the period from Oct. 11, 2016, to Nov.
10, 2016. It provided for total lease operating expense in the
amount of $48,911 and total administrative expense in the amount of
$6,850.
Armstrong Bank was granted replacement liens to the same extent and
priority that it held a properly perfected prepetition security
interest.
The Debtor was directed to maintain the dollar value of $141,000 in
cash and $76,000 in accounts receivable so that on the date of the
Interim Hearing, the Debtor will have at least a total of $217,000
in cash on hand and accounts receivable.
The Debtor was further directed to maintain insurance coverage in
amounts and against risks as reasonably required by Armstrong Bank,
with such insurance policies reflecting Armstrong Bank as loss
payee and the U.S. Trustee as a notice party.
An interim hearing on the use of cash collateral is scheduled on
Nov. 9, 2016 at 2:00 p.m.
A full-text copy of the Order, dated Oct. 14, 2016, is available at
http://bankrupt.com/misc/TuscanyEnergy2016_1610398epk_174.pdf
About Tuscany Energy, LLC
Tuscany Energy LLC filed for Chapter 11 bankruptcy protection
(Bankr. S.D. Fla. Case No. 16-10398) on Jan. 11, 2016. The
petition was signed by Donald Sider, manager. The case is assigned
to Judge Erik P. Kimball. The Debtor is represented by Bradley S.
Shraiberg, Esq., at Shraiberg, Ferrara, & Landau P.A. At the time
of the filing, the Debtor estimated assets at $100,000 to $500,000
and liabilities at $1 million to $10 million.
TUSK ENERGY: Creditors' Panel Hires Stewart Robbins as Attorneys
----------------------------------------------------------------
The Official Committee of Unsecured Creditors of Tusk Energy
Services, LLC and its debtor-affiliates, seeks authorization from
the U.S. Bankruptcy Court for the Western District of Louisiana to
retain Stewart Robbins & Brown, LLC as attorneys for the
Committee.
The Committee requires Stewart Robbins to:
(a) represent the Committee in any proceedings and hearings
related to the Chapter 11 Case;
(b) attend meetings and negotiation with representatives of the
Debtor and other parties in interest in the Chapter 11
Case;
(c) negotiate with the Debtor and other creditor and equity
constituencies in this case regarding a plan of
reorganization;
(d) advise the Committee of its powers and duties and regarding
matters of bankruptcy law;
(e) investigate and research the Debtor’s assets and
liabilities;
(f) provide assistance, advice, and representation concerning
the confirmation of, or objection to, any proposed plans;
(g) prosecute and defend litigation matters and such other
matters that might arise during the Chapter 11 Case;
(h) provide counseling and representation with respect to
assumption or rejection of executory contracts and leases,
sales of assets, and other bankruptcy-related matters
arising from the Chapter 11 Case;
(i) render advice with respect to other legal issues relating
to the Chapter 11 Case, including, but not limited to,
corporate finance and commercial issues;
(j) prepare on behalf of the Committee any necessary adversary
complaints, motions, applications, orders, and other legal
papers relating to the Chapter 11 Case; and
(k) perform such other legal services as may be necessary and
appropriate for the efficient and economical administration
of the Chapter 11 Case.
Stewart Robbins will be paid at these hourly rates:
Paul Douglas Stewarr, Jr., member $360
William S. Robbins, member $350
Brandon A. Brown, member $350
Ryan J. Richmond, member $315
Brooke W. Altazan, member $275
Janet H. DeLage, paralegal $90
Kimberly A. Heard, paralegal $90
Stewart Robbins will also be reimbursed for reasonable
out-of-pocket expenses incurred.
Paul Douglas Stewart, Jr., member of Stewart Robbins, 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.
Stewart Robbins can be reached at:
Paul Douglas Stewart, Jr., Esq.
Brandon A. Brown, Esq.
STEWART ROBBINS & BROWN, LLC
620 Florida Street, Suite 100
P.O. Box 2348
Baton Rouge, LA 70821-2348
Tel: (225) 231-9998
Fax: (225) 709-9467
E-mail: dstewart@stewartrobbins.com
bbrown@stewartrobbins.com
About Tusk Energy
Tusk Energy Services, LLC, Tusk Subsea Services, LLC, Tusk
Construction, LLC, and Rene Cross Construction, Inc., commenced
cases under Chapter 11 of the Bankruptcy Code (Bankr. W.D. La. Case
Nos. 16-51082 to 16-51085) on Aug. 8, 2016, with the goal of
marketing their businesses and assets for sale.
The Debtors have essentially two operating businesses: (i) a
dredging and jetting services company, operating under the name of
Tusk Subsea and operating through assets of Debtor Tusk Subsea
Services, LLC; and (ii) an inland marine construction business,
operating under the name of Rene Cross Construction and operating
through assets of Debtor Rene Cross Construction, Inc. Tusk Energy
estimated assets in the range of $1 million to $10 million and
debts of up to $10 million.
Locke Lord LLP serves as the Debtors' counsel. The cases are
assigned to Judge Robert Summerhays.
The U.S. Trustee has appointed an official committee of unsecured
creditors in the case.
UMATRIN HOLDING: Amends 100 Million Shares Prospectus with SEC
--------------------------------------------------------------
Umatrin Holding Limited filed an amended Form S-1 registration
statement with the Securities and Exchange Commission relating to
the offering of a maximum of 100,000,000 shares of its common stock
at a fixed price of $.02 per share. There is no minimum number of
shares that must be sold by us for the offering to close, and
therefore the Company may receive no proceeds or very minimal
proceeds from the offering. As such, potential investors may end
up obtaining shares in a company that may not receive enough
proceeds from the offering to begin operations or where there may
be no market for our shares.
The Company will retain the proceeds from the sale of any of the
offered shares that are sold. The offering is being conducted on a
self-underwritten, best efforts basis, which means our president,
Dato' Liew Kok Hong, and vice president, Dato' Sri Warren Eu Hin
Chai, will be responsible for the sale of the shares. This
prospectus will permit the Company's president and vice president
to sell the shares directly to the public, with no commission or
other remuneration payable to them for any shares they may sell.
The Company may not sell these securities until the registration
statement filed with the Securities and Exchange Commission is
effective. The intended methods of communication include, without
limitations, telephone and personal contact.
The offering will terminate upon the earlier to occur of: (i) the
sale of all 100,000,000 shares being offered, or (ii) 120 days
after this registration statement is declared effective by the
Securities and Exchange Commission. However, the Company may
extend the offering for up to 120 days following the 120 days
offering period.
The Company's common stock is currently listed on the OTCQB under
the symbol "UMHL". The Company's stock is thinly traded and there
is no active trading market developed for its shares of common
stock.
The Company's auditor issued a going concern opinion as to the
Company's financial conditions. The Company had accumulated
deficit of $2,196,105 as of June 30, 2016 which include a loss of
$29,723 for the six months ended June 30, 2016. Uncertainty arise
as the market being in operation faces economic slowdown which
might cast a slight doubt on the Company ability to generate profit
in the next 12 months.
"Management's plans include the raising of capital through the
equity markets to fund future operations, seeking additional
acquisitions, and generating of revenue through the business.
However, there can be no assurances the Company will be successful
in its efforts to secure additional equity financing and obtaining
sufficient revenue. These factors raise substantial doubt about
the Company's ability to continue as a going concern."
A full-text copy of the amended prospectus is available at:
https://is.gd/yzRY9N
About Umatrin
Umatrin Holding Limited (formerly known as Golden Opportunities
Corporation) was incorporated in the state of Delaware on Feb. 2,
2005. The Company was originally incorporated in order to locate
and negotiate with a targeted business entity for the combination
of that target company with the Company.
As of June 30, 2016, Umatrin had $1.78 million in total assets,
$1.29 million in total liabilities and $498,052 in total equity.
The Company reported a net loss of $364,077 for the 11 months ended
Dec. 31, 2015, compared to a net loss of $69,806 for the 11 months
ended Dec. 31, 2014.
Yichien Yeh, CPA, in Oakland Gardens, New York, issued a "going
concern" qualification on the consolidated financial statements for
the year ended Dec. 31, 2015, citing that the Company has incurred
accumulated deficit of $2,384,996 as of Dec. 31, 2015, that include
loss of $364,077 for the eleven months ended Dec. 31, 2015. These
factors raise substantial doubt about its ability to continue as a
going concern.
UNITED MOBILE: Needs More Time to Decide on Lease & File Exit Plan
------------------------------------------------------------------
United Mobile Solutions, LLC requests the U.S. Bankruptcy Court for
the District of Georgia to extend the period within which the
Debtor has the exclusive right to file a plan of reorganization
through and including February 15, 2017.
The Debtor explains it is in the process of finalizing its plan and
deciding whether to assume its non-residential real property lease
for (a) 6140-A Northbelt Parkway, Norcross, Gwinnett County,
Georgia and (b) 6135-G Northbelt Parkway, Norcross, Gwinnett
County, Georgia. Absent an extension, the Debtor's exclusive time
within which to propose a plan expires on November 17, 2016.
The Debtor has also sought an extension from the Court of its
deadline to assume or reject the lease through February 15, 2017.
The Court will hold a hearing to consider the Debtor's Motion on
November 2, 2016, at 11:00 a.m.
About United Mobile
United Mobile Solutions, LLC, filed a chapter 11 petition (Bankr.
N.D. Ga. Case No. 16-62537) on July 20, 2016. The petition was
signed by Kil Won Lee, president.
The Debtor is a carrier master dealer that operates and manages
approximately 20 retail cellular phone stores. The Debtor's
corporate offices are located in Norcross, Georgia.
The Debtor is represented by Cameron M. McCord, Esq., at Jones &
Walden, LLC. The Debtor estimated its assets at $0 to $50,000 and
its liabilities at $1 million to $10 million at the time of the
filing.
VACA BRAVA: Plan Confirmation Hearing on Nov. 9
-----------------------------------------------
The Hon. Mildred Caban Flores of the U.S. Bankruptcy Court for the
District of Puerto Rico has conditionally approved Vaca Brava Old
San Juan LLC's disclosure statement dated Oct. 4, 2016, describing
the Debtor's plan of reorganization.
A hearing for the consideration of the final approval of the
Disclosure Statement and the confirmation of the Plan will be held
on Nov. 9, 2016, at 1:30 p.m.
Objections to the final approval of the Disclosure Statement and
the confirmation of the Plan must be filed on or before 14 days
prior to the date of the hearing on confirmation of the Plan.
Acceptances or rejections of the Plan must 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.
The Debtor will file with the Court a statement setting forth
compliance with each requirement in U.S.C. Section 1129, the list
of acceptances and rejections and the computation of the same,
within seven working days before the hearing on confirmation.
Vaca Brava Old San Juan LLC filed for Chapter 11 bankruptcy
protection (Bankr. D.P.R. Case No. 15-09787) on Dec. 10, 2015,
estimating its assets and liabilities at between $100,001 and
$500,000 each. Javier Vilarino, Esq., at Vilarino & Associates LLC
serves as the Debtor's bankruptcy counsel.
VIDEO DISPLAY: Insufficient Revenues Raise Going Concern Doubt
--------------------------------------------------------------
Video Display Corporation filed with the U.S. Securities and
Exchange Commission its quarterly report on Form 10-Q, disclosing a
net loss of $378,000 on $1.95 million of net sales for the
three-months ended Aug. 31, 2016, compared to a net loss of $1.37
million on $2.92 million of net sales for the same period in 2015.
For the six months ended Aug. 31, 2016, the Company listed a net
loss of $770,000 on $3.81 million of net sales, compared to a net
loss of $2.93 million on $5.28 million of net sales for the same
period in the prior year.
The Company's balance sheet at Aug. 31, 2016, showed total assets
of $14.03 million, total liabilities of $6.34 million and
stockholders' equity of $7.69 million.
The Company has sustained losses for each of the last two years.
These losses were a combination of low revenues at all divisions
without a commensurate reduction of expenses. During the year
ended February 29, 2016, the Company operated using cash from
operations of $0.8 million, which was primarily generated from a
$0.7 million tax refund that was non-recurring in nature. During
the six months ended August 31, 2016 operational cash flows used
$1.0 million.
Management has implemented a plan to improve the liquidity of the
Company. The Company has been implementing a plan to increase
revenues at all the divisions, each structured to the particular
division with an increase in the current backlog and growth in
revenues. The Company has a plan to reduce expenses at the
divisions, as well as at the corporate location with the
expectation that expenses will be decreased by more than $1.7
million per year. Management continues to explore options to
monetize certain long-term assets of the business, including
current negotiations to sell its Lexel Imaging subsidiary, which is
presented as discontinued operations, where a final sale is
expected during fiscal year ending February 28, 2017. The Company
secured a $500,000 line of credit on September 14, 2016. If
additional and more permanent capital is required to fund the
operations of the Company, no assurance can be given that the
Company will be able to obtain the capital on terms favorable to
the Company, if at all.
The ability of the Company to continue as a going concern is
dependent upon the success of management's plans to improve
revenues, the operational effectiveness of continuing operations,
to liquidate the subsidiary noted above, the procurement of
suitable financing, or a combination of these. The uncertainty
regarding the potential success of management's plan create
substantial doubt about the ability of the Company to continue as a
going concern.
A full-text copy of the Company's Form 10-Q is available at:
https://is.gd/pBl8fe
About Video Display Corporation
Video Display Corporation and subsidiaries is a provider and
manufacturer of video products, components, and systems for visual
display and presentation of electronic information media in a
variety of requirements and environments. The Company designs,
engineers, manufactures, markets, distributes and installs
technologically advanced display products and systems, from basic
components to turnkey systems, for government, military, aerospace,
medical, industrial, and commercial organizations. The Company
markets its products worldwide primarily from facilities located in
the United States.
W.E. YODER: Wants $55K Insurance Premium Financing from Prime Rate
------------------------------------------------------------------
W.E. Yoder, Inc., asks the U.S. Bankruptcy Court for the Eastern
District of Pennsylvania for authorization to enter into a
Commercial Insurance Premium Finance and Security Agreement with
Prime Rate Premium Finance Corporation.
The Debtor relates that bankruptcy law as well as state law,
requires it to maintain adequate insurance coverage, including, but
not limited to, commercial, business auto, general liability and
excess liability insurance coverage, also known as Business
Insurance Coverage. Without requisite financing, the Debtor
believes it is unable to maintain and renew its Business Insurance
Coverage.
The relevant terms of the Agreement are:
(1) Prime Rate will provide financing to the Debtor for the
purchase of commercial package (including property, equipment and
theft coverage), business auto, general liability and excess
liability insurance coverage, effective Nov. 1, 2016, which is
essential for the operation of Debtor's business.
(2) The amount financed is $55,818.
(3) The Debtor will become obligated to pay Prime Rate the sum
of $56,375.69 in seven monthly installments of $8,054.
(4) Upon completion of all seven payments, the Debtor will
have paid the entire amount financed, together with aggregate
finance charges in the amount of $557.7, which is interest at an
annual rate of 2.99%.
(5) Following a cash down payment of $30,486, the first
payment under the Agreement is due on Dec. 1, 2016, and subsequent
payments are due on or about the first of each succeeding month.
(6) As collateral to secure the repayment of the indebtedness
due under the Agreement, the Debtor is granting Prime Rate a first
and only security interest in:
(i) Debtor's right, title and interest in any and all
unearned or return premiums and dividends which may become due
under the policies being purchased, and
(ii) any loss payments which reduce the Unearned
Premiums, subject to any mortgagee or loss payee interests.
The Debtor and Prime Rate have agreed that the following adequate
protection is adequate for the transaction:
(a) The Debtor be authorized and directed to timely make all
payments due under the Agreement and Prime Rate be authorized to
receive and apply such payment to the indebtedness owed by the
Debtor to Prime Rate as provided in the Agreement; and
(b) If the Debtor does not make any of the payments due under
the Agreement as they become due, the automatic stay shall
automatically lift to enable Prime Rate and/or third parties,
including, the insurance companies providing the Policies, to take
all steps necessary and appropriate to cancel the Policies, collect
the collateral and apply such collateral to the indebtedness owed
to Prime Rate by the Debtor.
The Debtor believes that by entering into the Agreement, its estate
will be preserved, if not enhanced, by virtue of its maintaining
proper insurance coverage that will enable it to continue its
operations and to protect against the occurrence of events that are
covered by the Policies.
A full-text copy of the Debtor's Motion, dated Oct. 14, 2016, is
available at
http://bankrupt.com/misc/WEYoder2014_1419893ref_210.pdf
A full-text copy of the Premium Finance Agreement, dated Oct. 14,
2016, is available at
http://bankrupt.com/misc/WEYoder2014_1419893ref_210_1.pdf
About W.E. Yoder
W.E. Yoder, Inc., filed a chapter 11 petition (Bankr. E.D. Penn.
Case No. 14-19893) on Dec. 18, 2014. The petition was signed by
William E. Yoder, president. The Debtor is represented by David B.
Smith, Esq., at Smith Kane Holman, LLC. The case is assigned to
Judge Richard E. Fehling. The Debtor estimated assets at $500,000
to $1 million and liabilities at $1 million to $10 million at the
time of the filing.
WADHWA DENTAL: Hires H Anthony Hervol as Attorney
-------------------------------------------------
Wadhwa Dental, PA seeks authorization from the U.S. Bankruptcy
Court for the Western District of Texas to employ H. Anthony Hervol
as attorney.
The Debtor requires Mr. Hervol to:
(a) represent the Debtor in this Chapter 11 case and advise the
Debtor as to its rights, powers and duties as debtor-in-
possession;
(b) prepare all necessary statements, schedules and other
documents and to negotiate and prepare one or more plans of
reorganization for the Debtor;
(c) represent the Debtor at all hearings, meetings of
creditors, conferences, trials and other proceedings in
this case;
(d) take necessary action to collect property of the estate and
file suits to recover the same, or pursue other adversary
proceedings as needed;
(e) prepare on behalf of Debtor all necessary applications,
answers, orders, reports and other legal papers;
(f) object to disputed claims; and
(g) perform all other legal services for the Debtor as Debtor-
in-possession which may be necessary.
The terms of employment of the law firm are payment for
professional services rendered at the rate of $285 per hour, to be
applied against a retainer of $15,000 for pre-petition and
post-petition services, along with a deposit of $1,717 for costs
and filing fees.
The law firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
H. Anthony Hervol assured the Court that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code and does not represent any interest adverse to
the Debtor and its estate.
Mr. Hervol can be reached at:
H. Anthony Hervol, Esq.
LAW OFFICE OF H. ANTHONY HERVOL
4414 Centerview Road, Suite 200
San Antonio, TX 78238
Tel: (210) 522-9500
Fax: (210) 522-0205
E-mail: hervol@sbcglobal.net
Wadhwa Dental, PA, filed a chapter 11 petition (Bankr. W.D. Tex.
Case No. 16-52134) on September 22, 2016, disclosing under $1
million in both assets and liabilities. The Debtor is represented
by H. Anthony Hervol, Esq.
WANK ADAMS: Wants $50K DIP Loan From Harry Spring
-------------------------------------------------
Wank Adams Slavin Associates LLP, a/k/a WASA Studio, asks the U.S.
Bankruptcy Court for the Southern District of New York for
authorization to obtain postpetition financing on a super-priority
basis from Harry Spring, in an amount not to exceed $50,000.
The Debtor seeks to obtain postpetition financing to fund the
payment of legal fees of Lewis Brisbois Bisgaard & Smith LLP,
including a $15,000 retainer fee, to be incurred by the Debtor in
connection with the prosecution of the Counterclaims asserted by
the Debtor in an arbitration proceeding brought against the Debtor
by XIN Development Management East, LLC.
The Debtor tells the Court that if it is successful in prosecuting
the Counterclaims, any recovery therefrom remaining after the
Debtor pays its secured debt would constitute additional funds
available for distribution to the Debtor's unsecured creditors.
The Debtor proposes to grant Harry Spring a senior priming security
interest in and to and lien on substantially all of the Debtor's
assets together with a super-priority administrative expense claim
in the Debtor's case.
The Debtor contends that the outstanding principal balance of the
loan will bear no interest. The Debtor further contends that the
loan will mature on the earlier of (a) the date of a final
disposition of the Arbitration, by award, settlement, or dismissal
or otherwise, and (b) the occurrence of an Event of Default.
A full-text copy of the Debtor's Motion, dated Oct. 14, 2016, is
available at
http://bankrupt.com/misc/WankAdams2015_1511952mew_180.pdf
A full-text copy of the DIP Loan and Security Agreement, dated Oct.
14, 2016, is available at
http://bankrupt.com/misc/WankAdams2015_1511952mew_180_2.pdf
About Wank Adams Slavin Associates LLP
Wank Adams Slavin Associates LLP filed a Chapter 11 petition
(Bankr. S.D.N.Y. Case No. 15-11952) on July 27, 2015. The petition
was signed by Harry Spring, senior managing partner. The Debtor is
represented by Nancy L. Kourland, Esq., at Rosen & Associates, P.C.
The Debtor disclosed that as of June 30, 2015, it had total assets
of $659,400 and total liabilities of $1,500,000.
WESTECH CAPITAL: Trustee Taps GBKH, Prickett as Special Counsel
---------------------------------------------------------------
The Chapter 11 trustee of Westech Capital Corp. seeks approval from
the U.S. Bankruptcy Court for the Western District of Texas to hire
special counsel.
Gregory Milligan, the court-appointed trustee, proposes to hire
George Brothers Kincaid & Horton LLP and Prickett, Jones & Elliott,
PA in connection with a derivative lawsuit filed by a group of
equity holders against certain insiders of Westech and
Greenberg Traurig LLP.
Mr. Milligan will employ the law firms pursuant to the terms of
their agreement, which provides for a contingency fee of 40% of all
sums recovered from the lawsuit.
The firms do not have any interest adverse to the Debtor's estate,
according to court filings.
George Brothers' contact information is:
B. Russell Horton, Esq.
George Brothers Kincaid & Horton, LLP
114 West 7th Street, Suite 1100
Austin, TX 78701
Phone: 512-495-1400/512-495-1482
Prickett's contact information is:
Prickett, Jones & Elliott, P.A.
1310 King Street
P.O. Box 1328
Wilmington, DE 19899
Tel: 302-888-6500
Fax: 302-658-8111
About Westech Capital Corp.
Westech Capital Corp (WTEC: OTC US) is a financial services holding
company. Its primary business operating subsidiary is Tejas
Securities Group, Inc.
Westech Capital Corp., fka Tejas, Inc., filed for Chapter 11
bankruptcy (Bankr. W.D. Tex. Case No. 16-10300) on March 14, 2016.
The petition was signed by Gary Salamone, CEO.
Westech estimated $1 million to $10 million in both assets and
liabilities.
Stephen A. Roberts, Esq., at Strasburger & Price, serves as
counsel.
Gregory S. Milligan was appointed Chapter 11 Trustee. He is
represented by:
Shelby A. Jordan, Esq.
Nathaniel Peter Holzer, Esq.
Antonio Cruz, Esq.
Jordan, Hyden, Womble, Culbreth & Holzer P.C.
500 North Shoreline Drive, Suite 900
Corpus Christi, TX 78401
Telephone: (361) 884-5678
Email: sjordan@jhwclaw.com
pholzer@jhwclaw.com
aortiz@jhwclaw.com
WHITESBURG REALTY: Isaac to Deal With Wal-Mart Lease Negotiations
-----------------------------------------------------------------
Whitesburg Realty, LLC, asks the U.S. Bankruptcy Court for the
Eastern District of Kentucky for approval to enter into a Property
Management Agreement and an Exclusive Right to Lease Agreement with
Isaac Commercial Properties, Inc. d/b/a NAI ISAAC. The Debtor
further seeks permission to use cash collateral to pay expenses due
under the Agreements.
The Debtor seeks approval pursuant to 11 U.S.C. Sec. 363 to enter
into the Agreements. Isaac is a well-established and large
property management company that is qualified to provide property
management services as set forth in the Agreements. By separate
motion, the Debtor has filed a motion to reject the existing
contract with its current property management company.
According to the Debtor, sound business reasons exist to justify
entry into the Agreements. The Debtor avers that entry into the
Agreements is necessary for the Debtor's reorganization efforts,
and Isaac has experience in dealing with Wal-Mart lease
negotiations.
Pursuant to the terms of the Management Agreement, Isaac will
receive remuneration for its services in managing the respective
Properties:
-- Management fees equal to the percentage of gross income per
prescribed monthly account period from each Property. Such fees
will be paid to Manager on the first day of each calendar month in
the amount of $1,500, the balance being paid in arrears during the
prescribed monthly accounting period.
-- A 7% construction management fee if Isaac supervises capital
improvement projects or tenant improvement work without hiring a
general contractor.
Pursuant to the terms of the Exclusive Right to Lease Agreement,
if, during the term hereof, the Property is leased to any person or
entity, or a contract for the lease of the Property is entered into
by Owner, Owner agrees to pay to Broker, as compensation for
procuring the lease, as follows:
(A) NEW LEASES - Owner agrees to pay to Broker an amount equal
to 6 percent of the total base rent consideration for the initial
lease term.
(B) OPTION TERM COMMISSION - Owner agrees to pay to Broker an
amount equal to 2 percent of the total base rental for each option
period or an amount equal to one month's rent, whichever is
greater.
(C) EXISTING TENANT RENEWALS - Owner agrees to pay to Broker an
amount equal to 2 percent of the total base rent consideration for
renewal lease terms that must be negotiated by Broker or an amount
equal to one month's rent, whichever is greater. If Broker is not
involved in the renewal negotiations, Broker is not entitled to a
commission.
(D) EXISTING OR FUTURE TENANT EXPANSIONS - Owner agrees to pay
to Broker an amount equal to 3 percent of the new base rent
consideration derived from an expansion of an existing or future
Tenant or an amount equal to one month's rent, whichever is
greater.
(E) SHORT TERM LEASES - Owner agrees to pay to Broker an amount
equal to 4 percent of the income derived from short term or
seasonal leases where the term is two years or less or an amount
equal to one month's rent, whichever is greater. Any lease, where
the term is two years and one day or longer, will be subject to the
commission schedule outlined in Section 4(a) "NEW LEASES".
The commission schedule outlined in the Exclusive Right to Lease
Agreement will also apply to all cooperating outside broker on new
leases and Broker agrees to compensate the cooperating outside
broker from funds it collects from Owner. Owner agrees that in the
event of a co-brokered deal, Broker will receive, after payment to
the outside broker a minimum of 50% percent of the applicable
commission.
Owner agrees that, in the event Owner sells the Property or a
portion thereof to a Tenant that Broker procured, Owner will pay
Broker a commission equal to 5 percent of the sale price.
The Debtor also seeks court approval for the use of its cash
collateral for any fees and expenses due under the Agreements. Use
of cash collateral will be necessary to pay these expenses in order
to care for the Debtor's property and ensure continued leasing
operations.
About Whitesburg Realty
Whitesburg Realty, LLC, a Kentucky limited liability company, was
established on Feb. 10, 2004. The sole member of Whitesburg Realty
is Jeffrey C. Ruttenberg. Whitesburg Realty is a landlord to the
various shops and businesses operated at the Whitesburg Plaza.
Whitesburg Realty has several tenants, most notably, Walmart, and
several smaller businesses including a nail salon, fashion retail
store and pizza restaurant. Whitesburg Realty began to experience
cash flow problems after it lost a grocery store tenant.
Facing cash flow problems after losing a grocery store tenant,
Whitesburg Realty filed a chapter 11 petition (Bankr. E.D. Ky. Case
No. 16-50721) on April 13, 2016. The petition was signed by
Jeffrey C. Ruttenberg, member.
The Debtor is represented by Jamie L. Harris, Esq., at Delcotto Law
Group PLLC.
The Debtor estimated assets and debt of $1 million to $10 million.
The Debtor listed Wyatt, Tarrant & Combs, LLP, as its largest
unsecured creditor holding a claim of $10,000.
No trustee or examiner has been appointed in the Chapter 11 case,
and no creditors' committee or other official committee has been
appointed.
* * *
The Debtor filed its Chapter 11 Plan of Reorganization and
corresponding Disclosure Statement on July 12, 2016, an Amended
Plan and Amended Disclosure Statement on Sept. 8, 2016, and a
Second Amended Disclosure Statement on Sept. 28, 2016. Plan
confirmation hearing is scheduled for Nov. 10, 2016.
[*] Egon Zehnder Issues Board Guidelines for Bankrupt Energy Firms
------------------------------------------------------------------
With oil continuing to languish below $50 a barrel, the energy
industry is girding for a protracted slump -- and the continuation
of a wave of bankruptcies as companies across the value chain are
pushed up against debt covenant restrictions. For companies that
enter Chapter 11, the structuring of the new board of directors is
a powerful factor in determining the company's ability to return to
long-term financial health.
Steve Goodman and Trent Aulbaugh, consultants at global executive
search and leadership assessment firm Egon Zehnder, have compiled a
set of guidelines on board selection and structuring for energy
firms in bankruptcy, based on their extensive work with dozens of
energy boards operating in a range of conditions. "It's tempting
to see putting together a new board as just one more box to check
on the way to getting approval from a bankruptcy judge," said Mr.
Goodman, "but an effective board is critical to deliver value and
certain best practices should not be overlooked to ensure
success."
"More Than Filling Empty Seats: A Guide to Board Composition for
Energy Companies Emerging from Bankruptcy" sets out four specific
things that companies, creditors and their advisors must do when
forming a new board:
Understand the range of agendas around the table. The company is
likely to favor "nameplate" directors whose endorsement will send a
strong public message. Secured creditors will be thinking about an
exit strategy, and thus will favor directors with financial and
turnaround experience. Unsecured creditors, on the other hand,
tend to push for board members with operational and strategic
experience to increase the value of the business. And then there
are the director candidates themselves, who will closely scrutinize
everything from the company's pre-bankruptcy reputation to the exit
strategies of the investors on the board.
"Sensitivity to everyone's perspectives up front will make it
easier for all parties to work together and agree on a first-rate
board, and then to attract director candidates who have plenty of
other options," noted Mr. Aulbaugh.
Choose directors with the right experience, judgment and
temperament. "The board is going to be hit from day one with
knotty, high-stakes challenges, from continued evaluation of the
CEO to evaluating optionality for potential business combinations,"
says Mr. Goodman. "This is not time for on-the-job training.
Directors need to represent an array of relevant technical
knowledge, impeccable business judgment and a temperament that
thrives in uncertainty." In other words, the goal is for the board
to be a high-functioning, agile team rather than a star-studded
panel.
Have a strong foundation at the top. Many if not all of the
directors on a board formed in bankruptcy will have never worked
together before. The extent and speed with which a group of
individuals can come together as a team will be determined by the
board chair. The ideal board chair will establish a board culture
characterized by open debate, rigorous decision making, and a focus
on strategy and risk assessment rather than short-term
implementation details. Strong leadership at the committee level
is also critical.
Closely monitor board dynamics. Boards of companies emerging from
bankruptcy don't have the luxury of learning and then unlearning
bad habits. As a result, the board chair needs to establish a near
real-time mechanism for taking the temperature of the board. The
guidelines provide an example of a short questionnaire chairs can
use to get a quick sense of board culture so that necessary
adjustments can be made before small issues become full-scale
derailers.
"Creating a board for an energy company emerging from bankruptcy
may look like a daunting challenge, but it is also a rare
opportunity to rebuild from scratch, unencumbered by legacy
constraints," said Mr. Goodman. "Our hope is that this set of
guidelines will be useful to companies, their lenders and
stakeholders as they work to maximize company performance and
enhance the company's attractiveness in capital markets."
About Egon Zehnder
Since 1964, Egon Zehnder -- http://www.egonzehnder.com/-- has been
at the forefront of defining great leadership in the face of
changing economic conditions, emerging opportunities and evolving
business goals. With more than 400 consultants in 69 offices and
41 countries around the globe, Egon Zehnder works closely with
public and private corporations, family-owned enterprises and
nonprofit and government agencies to provide board advisory
services, CEO and leadership succession planning, executive search
and assessment, and leadership development.
[*] Pinsonnault Joins Ankura's Turnaround & Restructuring Group
---------------------------------------------------------------
Ankura Consulting Group, a business advisory and expert services
firm, on Oct. 17, 2016, announced the appointment of Scott
Pinsonnault as Senior Managing Director to Ankura's Turnaround &
Restructuring group. He will practice out of the firm's Dallas
office.
Mr. Scott Pinsonnault joins Ankura as Senior Managing Director with
21 years of operating and financial experience, specifically in
energy, oil and gas, and related industries. His strong technical
background includes hands-on operational and engineering
experience, as well as experience advising and financing energy,
exploration, production and oilfield service companies throughout
their capital structure timeline. His professional experience also
includes managing a diverse array of investments in those same
industries. Mr. Pinsonnault has served as Chief Restructuring
Officer for three oil and gas exploration and production companies.
Most recently, Mr. Pinsonnault was Chief Financial Officer and
Chief Restructuring Officer with Venoco Inc.
"Ankura is committed to attracting top-flight industry
professionals and leaders, and in this regard, we feel very
fortunate to now have Scott as a colleague," said Kevin Lavin,
Co-President of Ankura, who added "Scott will offer tremendous
strategic insight and value to our clients in the energy sector."
Mr. Pinsonnault can be reached at:
Scott Pinsonnault
Senior Managing Director
ANKURA CONSULTING GROUP
16000 Dallas Parkway, Suite 100
Dallas, TX 75248
Mobile: +1.214.771.6133
E-mail: scott.pinsonnault@ankuraconsulting.com
About Ankura Consulting Group
Ankura Consulting Group -- http://www.ankuraconsulting.com/-- is a
business advisory and expert services firm. Ankura's offering
includes a wide range of services offered within its Data Analytics
& Technology Services, Investigations & Accounting Advisory,
Litigation & Disputes, Regulatory & Contractual Compliance, Risk,
Resilience & Geopolitical, Turnaround & Restructuring groups.
[] Gallagher Joins Ankura's Turnaround & Restructuring Practice
---------------------------------------------------------------
Ankura Consulting Group, a business advisory and expert services
firm, on Oct. 12 announced the appointment of Roy Gallagher to
Ankura's Turnaround and Restructuring practice. He will be based
in the firm's Chicago office.
Mr. Roy Gallagher joins Ankura as Senior Managing Director with
nearly 20 years of strategic financial restructuring experience
across various industries, including: industrial metals, building
products, automotive, aerospace and defense, technology, and the
food products industry. Mr. Gallagher has extensive experience
advising both companies and creditors in distressed situations. In
addition, he spent the last decade in the distressed debt market as
a principal investor and has experience leading both in-court and
out-of-court restructurings. He has worked with management and
lenders to restructure corporate balance sheets and to improve the
operations of underperforming companies in an effort to maximize
value for key stakeholders. Mr. Gallagher was most recently a
managing director with Black Diamond Capital Management.
"Ankura continues to attract great professionals that share our
cultural beliefs," said Kevin Lavin, Co-President of Ankura.
"Roy's leadership and experience is a very welcome addition to our
Turnaround & Restructuring practice and having steered countless
organizations through complex restructurings our clients will
certainly benefit as well."
Mr. Gallagher can be reached at:
Roy Gallagher
Senior Managing Director
ANKURA CONSULTING GROUP
30 S. Wacker Drive, Suite 2200
Chicago, IL 60606
Main: +1.312.466.5748
Mobile: +1.773.213.1942
E-mail: roy.gallagher@ankuraconsulting.com
About Ankura Consulting Group
Ankura Consulting Group -- http://www.ankuraconsulting.com/-- is a
business advisory and expert services firm. Ankura's offering
includes a wide range of services offered within its Data Analytics
& Technology Services, Investigations & Accounting Advisory,
Litigation & Disputes, Regulatory & Contractual Compliance, Risk,
Resilience & Geopolitical, Turnaround & Restructuring groups.
*********
Monday's edition of the TCR delivers a list of indicative prices
for bond issues that reportedly trade well below par. Prices are
obtained by TCR editors from a variety of outside sources during
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however, be complete or accurate. The Monday Bond Pricing table
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then-ending.
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*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter is a daily newsletter co-published
by Bankruptcy Creditors Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA.
Jhonas Dampog, Marites Claro, Joy Agravante, Rousel Elaine
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Sheryl Joy P. Olano, Psyche A. Castillon, Ivy B. Magdadaro, Carlo
Fernandez, Christopher G. Patalinghug, and Peter A. Chapman,
Editors.
Copyright 2016. All rights reserved. ISSN: 1520-9474.
This material is copyrighted and any commercial use, resale or
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