/raid1/www/Hosts/bankrupt/TCR_Public/161222.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Thursday, December 22, 2016, Vol. 20, No. 356
Headlines
3324 N. CLARK: Can Borrow Funds From Simone Singer-Weissbluth Trust
5 STAR WASHER: Can Continue Using Cash Collateral Until March 31
AIR DISTRIBUTING: Case Summary & 20 Largest Unsecured Creditors
AMERICAN RENAL: S&P Raises Rating on Senior Secured Debt to B+
ASP EMERALD: S&P Assigns 'B' CCR; Outlook Stable
AVIS BUDGET: S&P Raises CCR to 'BB' on Updated Criteria
BENZIE LEASING: Can Continue Utilizing Cash Collateral
BIOSCRIP INC: S&P Puts 'CCC' CCR on CreditWatch Negative
BLUE STAR GROUP: Case Summary & Top Unsecured Creditors
CAROUSEL PROPERTIES: Court Allows Cash Use Through Jan. 2
CAROUSEL PROPERTIES: Rigdon Gets Interim Approval to Use Cash
CENTRAL IOWA HEALTHCARE: Case Summary & 20 Top Unsec. Creditors
COVENANT SURGICAL: S&P Rates New $42.5MM Sr. Sec. Notes 'B-'
CREEKSIDE CANCER: Seeks Court Approval for Cash Collateral Use
DAILY HAVEN: Can Use Rialto Cash Collateral Until May 2017
DAILY HAVEN: Court Approves Use of RREF II PB Cash Collateral
DAKOTA PLAINS: Case Summary & 7 Unsecured Creditors
DAVMAR INVESTMENTS: Case Summary & 2 Unsecured Creditors
DEDICATED STAGING: Case Summary & 6 Unsecured Creditors
DELTA AIR: S&P Raises Rating on 2009A Airport Revenue Bonds to BB+
DIRECT MEDIA: Wants to Utilize Cash Collateral Thru January 19
ELK CREEK: Can Use Yadkin Bank Cash Until February 15
EVOSHIELD LLC: Hires Lamberth Cifelli as Attorney
HANISH LLC: Wants to Use Phoenix REO Cash Collateral Until March 31
HEBREW HEALTH: Has Until Jan. 27 to Use Cash Collateral
HOPKINTON DRUG: Dec. 15 Cash Collateral Hearing Cancelled, Moot
INTERPARK INVESTORS: Can Continue Using Cash Thru March 17
INTERTAIN GROUP: S&P Cuts Rating on GBP90MM 2nd Lien Term Loan to B
KANE CLINICS: Wants Court to Authorize Cash Collateral Use
KARHOO INC: Chapter 15 Case Summary
KARHOO INC: London-Based Taxi App Files for Chapter 15 Bankruptcy
LANDS' END: S&P Affirms 'B-' CCR & Revises Outlook to Negative
MADISON CONSTRUCTION: Seeks Court Authorization to Use Cash
MEDPACE HOLDINGS: S&P Affirms Then Withdraws 'BB-' CCR
MERCHANTS BANKCARD: Can Get Financing, Use Cash on Interim Basis
MIDDLE GEORGIA CENTER: Case Summary & 6 Unsecured Creditors
MODULAR SPACE: Case Summary & 30 Largest Unsecured Creditors
MODULAR SPACE: Files for Ch. 11 With Plan to Cut $400M in Debt
MODULAR SPACE: Proposes Feb. 1 Hearing on Plan and Disclosures
MODULAR SPACE: Unsecured Creditors to Get 100% Under Prepack Plan
OMNI LOOKOUT: Court Allows Use of LB-UBS Cash Collateral
OPEN TEXT: S&P Raises Rating on Unsecured Debt to 'BB+'
OPTIMA SPECIALTY: Needs Interim Authority To Access Cash Collateral
PBF LOGISTICS: S&P Affirms 'B+' Rating on Senior Unsecured Notes
PET CAFE: Needs Interim Authorization To Utilize Cash Collateral
PETROLEX MANAGEMENT: Can Use Cash Until March 2 Hearing
PIONEER BREAKER: Court Allows Cash Use on Interim Basis
PRECISE CORPORATE: Case Summary & 8 Unsecured Creditors
RACEWAY MARKET: Case Summary & 2 Unsecured Creditors
RADIAL I: S&P Assigns 'B' CCR on Narrow Retail Focus, Outlook Neg.
RED RIVER: Wants to Continue Using Cash Collateral
REGAL PETROLEUM: Seeks Approval to Use IRS Cash Collateral
RELIABLE HUMAN: Has Permission to Use Cash on Final Basis
SIERRA HAMILTON: S&P Lowers CCR to 'D' on Missed Interest Payment
SUPERIOR LINEN: Court Allows Cash Collateral Use Until Dec. 31
TALL CITY: Has Until Jan. 24 to Use Cash Collateral
UNIVERSAL SOFTWARE: Court Allows Continued Cash Collateral Use
WEST VIRGINIA HIGH: Can Use Cash Collateral Until May 31
[*] Fitch Forecasts 3% Energy Default Rate in 2017
[^] Recent Small-Dollar & Individual Chapter 11 Filings
*********
3324 N. CLARK: Can Borrow Funds From Simone Singer-Weissbluth Trust
-------------------------------------------------------------------
Judge Donald R. Cassling of the U.S. Bankruptcy Court for the
Northern District of Illinois authorized 3324 N. Clark Street, LLC
to borrow funds from Simone Singer-Weissbluth Revocable Trust.
Judge Cassling granted Simone Singer-Weissbluth Trust an
administrative claim for all sums that will be funded pursuant to
the Court's Order.
The Debtor was authorized to borrow funds in order to pay any short
fall between the total rent revenues and the monthly expenses from
the real property commonly known as 3324 N. Clark Street, Chicago,
Illinois.
A full-text copy of the Order entered on December 15, 2016 is
available at https://is.gd/VP1gjH
About 3324 N. Clark Street
3324 N. Clark Street, LLC, sought Chapter 11 protection (Bankr.
N.D. Ill. Case No. 16-30934) on Sept. 28, 2016. The petition was
signed by Simone Singer Weissbluth, manager of WMW Investments,
LLC, the manager of the Debtor. The case is assigned to Judge
Donald R. Cassling. The Debtor estimated assets and liabilities at
$1 million to $10 million at the time of the filing.
The Debtor is represented by Ariel Weissberg, Esq. and Devvrat
Sinha, Esq. at Weissberg and Associates, Ltd. The Debtor also
employs Saul R. Wexler, member of the Law Offices of Saul R.
Wexler, as its special counsel; and Rick Levin & Associates, Inc.
as its a real estate broker in connection with the sale of its real
property located at 3324 N. Clark Street, Chicago, Illinois.
No trustee, examiner, or official committee of unsecured creditors
has been appointed.
5 STAR WASHER: Can Continue Using Cash Collateral Until March 31
----------------------------------------------------------------
Judge Michael J. Kaplan of the U.S. Bankruptcy Court for the
Western District of New York authorized 5 Star Washer Technical
Services Inc. to continue using cash collateral through March 31,
2017, on the same terms set forth in Court's Twentieth Interim Cash
Collateral Order, entered on Jan. 13, 2016.
Judge Kaplan extended the Debtor's time to confirm their Small
Business Plan through March 31, 2017.
A further hearing and status report on confirmation of the Debtor's
Plan and on approval of any further extension of both time to
confirm the Debtor's Small Business Plan and the Debtor's continued
use of cash collateral beyond March 31, 2017 will be held on March
22, 2017 at 10:00 a.m.
A full-text copy of the Order, entered on December 15, 2016, is
available at https://is.gd/p3gIBp
About 5 Star Washer Technical Services Inc.
5 Star Washer Technical Services Inc. fdba Successor-in-Interest to
5 Star Washer Service Inc. filed a Chapter 11 petition (Bankr.
W.D.N.Y. Case No. 13-10738), on March 22, 2013. The Petition was
signed by Becki L. Spears, president. The case is assigned to
Judge Michael J. Kaplan. The Debtor is represented by Daniel F.
Brown, Esq. at Andreozzi, Bluestein, Fickess, Muhlbauer Weber,
Brown, LLP. At the time of filing, the Debtor estimated assets at
had $1,000,001 to $10,000,000 and liabilities at $500,001 to
$1,000,000.
AIR DISTRIBUTING: Case Summary & 20 Largest Unsecured Creditors
---------------------------------------------------------------
Debtor: Air Distributing Co., Inc.
dba adco
9009 Center St
Manassas, VA 20110
Case No.: 16-14272
Chapter 11 Petition Date: December 20, 2016
Court: United States Bankruptcy Court
Eastern District of Virginia (Alexandria)
Judge: Hon. Brian F. Kenney
Debtor's Counsel: Gregory H. Counts, Esq.
TYLER, BARTL, RAMSDELL & COUNTS, PLC
300 North Washington St. Suite 202
Alexandria, VA 22314-4252
Tel: 703-549-5001
Fax: 703-549-5011
Email: gcounts@tbrclaw.com
Estimated Assets: $100,000 to $500,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Mark Wolfe, president.
A list of the Debtor's 20 largest unsecured creditors is available
for free at http://bankrupt.com/misc/vaeb16-14272.pdf
AMERICAN RENAL: S&P Raises Rating on Senior Secured Debt to B+
--------------------------------------------------------------
S&P Global Ratings said that it has reviewed all of its recovery
and issue-level ratings for renal companies in the U.S. health care
services sector for speculative-grade corporate issuers that were
labeled as "under criteria observation" (UCO) after publishing its
revised recovery ratings criteria on Dec. 7, 2016. With S&P's
criteria review complete, it is removing the UCO designation from
these ratings and are revising issue-level and recovery ratings as
appropriate.
This release pertains to rated renal companies in the U.S health
care services sector. The ratings list below is arranged
alphabetically by issuer and identifies the debt instruments with
rating changes.
As an overview, S&P is revising the issue-level ratings on five
rated debt issues in the U.S. health care services sector,
reflecting two upgrades and three affirmations. In the case of the
upgrades, the revision to the issue-level rating resulted from a
revision to the recovery rating on the debt instrument.
In addition, S&P is revising the recovery rating to '3' from '4',
on one rated debt instruments of renal companies in the U.S. health
care services sector, as a result of our new criteria. Since this
revision does not result in an issue-level rating change, S&P is
affirming the issue-level rating for the affected issue.
These rating actions stem solely from the application of S&P's
revised recovery criteria and do not reflect any change in its
assessment of the corporate credit ratings for issuers of the
affected debt issues.
RATINGS LIST
Issue Ratings Raised, Recovery Ratings Revised Due To Revised
Recovery Rating Criteria For Speculative-Grade Corporate Issuers
To From
American Renal Holdings Inc.
Senior secured B+ B
Recovery rating 2H 4H
DaVita HealthCare Partners Inc.
Senior secured BBB- BB
Recovery rating 1 3H
Issue Ratings Affirmed, Recovery Ratings Revised Due To Revised
Recovery Rating Criteria For Speculative-Grade Corporate Issuers
To From
U.S. Renal Care Inc.
Senior secured B B
Recovery rating 3L 4H
Issue Ratings Affirmed, Recovery Rating Unchanged
DaVita HealthCare Partners Inc.
Senior unsecured B+
Recovery rating 6
U.S. Renal Care Inc.
Senior secured second lien CCC+
Recovery rating 6
ASP EMERALD: S&P Assigns 'B' CCR; Outlook Stable
------------------------------------------------
S&P Global Ratings assigned its 'B' corporate credit rating to ASP
Emerald Holdings LLC. The rating outlook is stable.
At the same time, S&P affirmed its 'B' issue-level rating and '3'
recovery rating on Emerald Performance Materials LLC's first-lien
senior secured credit facility, consisting of a $75 million
revolver and first-lien term loans totaling $529 million
outstanding. S&P also affirmed its 'B-' issue-level rating and '5'
recovery rating on Emerald Performance Materials LLC's $230 million
second-lien term loan.
S&P is also withdrawing the 'B' corporate credit rating on Emerald
Performance Holding Group LLC, which was the parent entity prior to
ASP Emerald Holdings LLC.
"Although S&P Global Ratings expects Emerald's credit measures to
remain highly leveraged, we recognize recent margin improvements in
the business, and we expect the sale of the PANIT business to be
roughly leverage-neutral after it uses a portion of proceeds to pay
down debt," said S&P Global Ratings credit analyst Michael
McConnell. "We expect the company to sustain EBITDA margins in the
high-teens to low-twenties, and sustain pro forma weighted average
FFO to debt in the 10% to 12% range, and debt to EBITDA in the 5x
to 6x range," he added.
S&P could raise the ratings over the next 12 months if earnings
growth is significantly higher than it is forecasting, or if
greater-than-expected debt reduction led to a significant
improvement in credit measures. Specifically, S&P could consider a
higher rating if 2017 EBITDA margins are 300 basis points higher
than S&P's base case forecast, coupled with moderate revenue
growth. In such a scenario, S&P would expect the company to
improve its pro forma FFO-to-debt ratio to about 15%, with debt to
EBITDA below 5x, pro forma for acquisitions and divestitures. S&P
would also need to be more certain that the company's financial
policies would support maintaining credit measures at these levels,
before considering a higher rating. S&P could also consider an
upgrade if the company were to reduce debt, such that leverage
metrics materially improve from current levels.
S&P could lower the ratings over the next 12 months if unexpected
cash outlays or business difficulties reduced the company's
liquidity position to a level S&P considers to be less than
adequate. In addition, S&P could lower the rating if debt to
EBITDA approaches 7x pro forma for acquisitions, divestitures, and
any subsequent shareholder rewards, or if the company's free cash
flow generation were to turn negative for an extended period. S&P
thinks this could occur if the company's revenues were to decline
by 5%, combined with EBITDA margins declining by 200 basis points
or more. S&P could also consider a lower rating in the company's
financial policies are more aggressive than S&P expects, or if a
deterioration in operating prospects caused S&P to re-assess the
business risk profile as weak.
AVIS BUDGET: S&P Raises CCR to 'BB' on Updated Criteria
-------------------------------------------------------
S&P Global Ratings raised its ratings on Avis Budget Group Inc.,
including raising the corporate credit rating to 'BB' from 'BB-'.
The outlook is stable. S&P is also raising the issue-level ratings
on the senior secured credit facility to 'BBB-' and the senior
unsecured notes to 'BB-'. The recovery ratings remain unchanged.
At the same time, S&P removed the ratings' UCO identifier based on
S&P's reassessment of the company's credit profile under the new
criteria.
The rating action follows S&P Global Ratings' publication of
updated criteria for rating operating leasing companies. The
upgrade principally reflects S&P's more favorable assessment of
Avis Budget's business risk profile, which S&P now assess as
satisfactory under the new criteria, rather than S&P's previous
assessment of fair. S&P continues to assess the company's
financial risk profile as aggressive. S&P previously rated
operating leasing companies using its “2008 Corporate
Methodology: Analytical Methodology," which has been retired. S&P
now applies its "Corporate Methodology," Nov. 19, 2013, as a
general framework, and the Key Credit Factors criteria to
incorporate the particular characteristics of operating leasing
companies.
Through its Avis and Budget brands, Avis Budget is one of the three
largest U.S. car rental companies (along with Enterprise Holdings
Inc., parent of the Enterprise; Alamo and National brands; and
Hertz Global Holdings Inc., parent of the Hertz, Dollar and Thrifty
brands). It also has substantial global operations, owns car
sharer Zipcar, and the Budget consumer truck rental brand. The
company maintains some pricing power, has good brand recognition,
good relationship with original equipment manufacturers (OEMs), and
access to relatively low-cost asset-backed funding. Avis generates
about two thirds of its revenues domestically and the remainder
globally. Among the three major car rental brands, Avis is the
smallest by market share in the U.S. (in both the on- and
off-airport markets), closely trailing Hertz in the on-airport
segment (Enterprise is the leader in off-airport). The company's
operating margins are stronger than Hertz's but below
Enterprise's.
The outlook is stable. Despite some pricing pressure, S&P expects
Avis Budget's credit metrics to remain relatively consistent over
the next year, with EBIT interest coverage in the high-1x area, FFO
to debt in the low-20% area, and debt to capital in the high-90%
area.
Although unlikely, S&P could raise the ratings over the next year
if the company is able to execute on its various operating
initiatives, including fleet and pricing optimization, such that
EBIT interest coverage would exceed 1.9x or debt to capital would
decline to below 90% and remain there over a sustained period.
Although unlikely over the next year, S&P could lower the rating if
pricing pressure is greater than expected, causing EBIT interest
coverage to decline to below 1.3x and remain there on a sustained
basis.
BENZIE LEASING: Can Continue Utilizing Cash Collateral
------------------------------------------------------
Judge James W. Boyd of the U.S. Bankruptcy Court for the Western
District of Michigan authorized Debtor Benzie Leasing, LLC, to
continue using cash collateral pursuant to the Second Stipulation
between the Debtor, Honor Bank, and the U.S. Trustee.
The Debtor was authorized to use all cash collateral, income,
deposit accounts, inventory, accounts receivable, general
intangibles, chattel paper, documents, instruments, equipment, and
all other property and assets of the estate, and their proceeds and
products, in the ordinary course of its business.
Pursuant to the Second Stipulation, the Parties have consented to
increase the Adequate Protection payment to Honor Bank from $4,578
per month to $6,563.63 per month, and to extend use of cash
collateral for a period of 90 days from entry of the Order
approving the Stipulation.
A full-text copy of the Third Stipulated Order, dated December 15,
2016, is available at https://is.gd/gT0AeK
About Benzie Leasing
Benzie Leasing, LLC -- dba Xpress Lube of Benzonia, Bay Auto Wash
and Benzie Wash -- filed a chapter 11 petition (Bankr. W.D. Mich.
Case No. 16-00348) on Jan. 28, 2016. The petition was signed by
David A. Wolfe, sole member and manager. The Debtor is represented
by Michael P. Corcoran, Esq., at Corcoran Law Office. The case is
assigned to Judge James W. Boyd. The Debtor disclosed $817,220 in
assets and debt totaling $1.27 million at the time of the filing.
BIOSCRIP INC: S&P Puts 'CCC' CCR on CreditWatch Negative
--------------------------------------------------------
S&P Global Ratings placed its ratings on BioScrip Inc., including
the 'CCC' corporate credit rating, on CreditWatch with negative
implications following adverse changes to Medicare reimbursement
for certain infusion drug therapies.
The 21st Century Cures Act was recently signed into law which,
among other provisions, materially reduces Medicare reimbursement
for certain infusion drug therapies, beginning Jan. 1, 2017.
Under the current reimbursement framework, alternate-site infusion
providers are only reimbursed for the infusion drug component,
which subsidizes other costs of providing the infusion service
(i.e., nursing home visits, medical supplies, and transportation)
that Medicare does not currently reimburse. Although the Cures Act
establishes Medicare reimbursement for the service component, that
reimbursement does not begin until 2021.
"The negative CreditWatch reflects our expectations for a material
deterioration in EBITDA and free cash flow and a significant
escalation in the risk of a near-term default, notwithstanding
recent operational improvements so far in the fourth quarter," said
S&P Global Ratings credit analyst Elan Nat.
The company is currently in negotiations with lenders on an
amendment to its consolidated first-lien net leverage covenant,
which steps down to 4x in the second quarter of 2017, from 6.5x
today.
The CreditWatch placement reflects the potential for a
multiple-notch downgrade if the company is unable to offset the
pressures from the reimbursement change, limit free cash flow
deficits, and avoid a liquidity event. The CreditWatch also
reflects diminishing prospects for the company to obtain the
proposed amendment to its credit agreement, which provides relief
to its consolidated first-lien net leverage covenant that steps
down to 4x in the second quarter of 2017, from 6.5x today.
S&P will evaluate the company's financial performance given these
recent developments, focusing on the impact to EBITDA and cash flow
deficits.
BLUE STAR GROUP: Case Summary & Top Unsecured Creditors
-------------------------------------------------------
Debtor affiliates filing separate Chapter 11 bankruptcy petitions:
Debtor Case No.
------ --------
Blue Star Group, Inc 16-26548
4900 Nicholson Court
Kensington, MD 20895
Barwood Inc. 16-26550
4900 Nicholson Court
Kensington, MD 20895
Fleet Tech Inc. 16-26551
4900 Nicholson Ct
Kensington, MD 20895
Checker Transportation , Inc 16-26552
City Lease , Inc. 16-26553
Silver Spring Transportation Company 16-26555
Chapter 11 Petition Date: December 20, 2016
Court: United States Bankruptcy Court
District of Maryland (Greenbelt)
Judge: Hon. Thomas J. Catliota
Debtors' Counsel: Alan M. Grochal, Esq.
TYDINGS & ROSENBERG, LLP
100 E. Pratt Street., Fl. 26
Baltimore, MD 21202
Tel: 410-752-9700
Fax: 410-727-5460
E-mail: agrochal@tydingslaw.com
- and -
Marissa K Lilja, Esq.
TYDINGS & ROSENBERG, LLP
100 East Pratt Street, 26th Floor
Baltimore, MD 21202
Tel: 410-752-9739
E-mail: mlilja@tydingslaw.com
- and -
Joseph Michael Selba, Esq.
TYDINGS & ROSENBERG, LLP
100 East Pratt Street, 26th Floor
Baltimore, MD 21202
Tel: 410-752-9753
Fax: 410-727-5460
E-mail: JSelba@tydingslaw.com
Estimated Estimated
Assets Liabilities
--------- -----------
Blue Star Group, Inc. $0-$50K $1M-$10M
Barwood Inc. $1M-$10M $100K-$500K
Fleet Tech Inc. $50K-$100K $50K-$100K
The petitions were signed by Lee Barnes, president.
A. A copy of Blue Star Group's list of 11 unsecured creditors is
available for free at http://bankrupt.com/misc/mdb16-26548.pdf
B. A copy of Barwood Inc.'s list of 20 largest unsecured creditors
is available for free at http://bankrupt.com/misc/mdb16-26550.pdf
C. A copy of Fleet Tech Inc.'s list of seven unsecured creditors is
available for free at http://bankrupt.com/misc/mdb16-26551.pdf
CAROUSEL PROPERTIES: Court Allows Cash Use Through Jan. 2
---------------------------------------------------------
Judge Mark X. Mullin of the U.S. Bankruptcy Court for the Northern
District of Texas authorized Carousel Properties Inc. to use of
cash collateral on an interim basis.
The Debtor's use of cash collateral will terminate, the earlier to
occur of January 2, 2017, or the date on which a final hearing on
the Motion is conducted.
The approved Budget for the month of December 2016 reflects total
expenses of $9,116.
The Debtor's cash collateral includes all deposits, rents and all
cash arising from the collection or conversion into cash of
property of Rigdon in which the Internal Revenue Service and/or
First State Bank - Chico has a valid prepetition security interest,
lien or mortgage.
The IRS and First State Bank were granted valid, perfected and
enforceable new, first-priority liens and security interests upon
any property of the Debtor upon which the IRS and First State Bank
held prepetition liens and security interests and all proceeds,
rents, products or profits thereof, and specifically including any
property acquired by the Debtor after the Petition Date which is of
the same nature, kind and character as IRS' and/or First State
Bank's collateral.
The security interests and liens granted to the IRS and First State
Bank will only act as adequate protection for the diminution in
value caused by the Debtor's use of Cash Collateral, if any.
The Debtor was directed to maintain insurance on First State Bank's
prepetition and post-petition collateral, whereby First State Bank
will be listed as an additional loss payee on such insurance.
As additional adequate protection to First State Bank, if on
December 31, 2016 the Excess Rents exceed the sum of $1,000, the
Debtor will make an adequate protection payment to First State Bank
on January 2, 2017 in the amount of the Excess Rents exceeding
$1,000, which payment shall be applied by First State Bank to
accrued interest on First State Bank's two Carousel notes, with the
payment split evenly between the two notes.
A full-text copy of the Agreed Interim Order dated December 15,
2016, is available at https://is.gd/tfzzK9
About Carousel Properties, LLC
Carousel Properties, LLC filed a Chapter 11 petition (Bankr. N.D.
Tex. Case No. 16-44621), on December 2, 2016. The Petition was
signed by Bettye Jeanne Rigdon, president. The case is assigned to
Judge Russell F. Nelms. The Debtor is represented by Jeff P.
Prostok, Esq. at Forshey & Prostok, LLP. At the time of filing,
the Debtor estimated $1 million to $10 million in both assets and
liabilities.
CAROUSEL PROPERTIES: Rigdon Gets Interim Approval to Use Cash
-------------------------------------------------------------
Judge Mark X. Mullin of the U.S. Bankruptcy Court for the Northern
District of Texas, authorized Bettye Rigdon to use of cash
collateral on an interim basis.
Debtors Bettye Rigdon, Carousel Properties, LLC, and TLD Bar Ranch,
LP, previously sought the Court's authorization for Ms. Rigdon's
use of cash collateral.
Ms. Rigdon's use of cash collateral will terminate on the earlier
to occur of January 2, 2017, or the date on which a final hearing
on the Motion is conducted.
Ms. Rigdon's approved Budget for the month of December 2016
reflects total expenses of $2,805.
Ms. Rigdon's cash collateral includes all deposits, rents and all
cash arising from the collection or conversion into cash of
property of Rigdon in which the Internal Revenue Service and/or
First State Bank - Chico has a valid prepetition security interest,
lien or mortgage.
The IRS and First State Bank were granted valid, perfected and
enforceable new, first-priority liens and security interests upon
any property of Ms. Rigdon upon which the IRS and First State Bank
held prepetition liens and security interests and all proceeds,
rents, products or profits thereof, and specifically including any
property acquired by the Debtor after the Petition Date which is of
the same nature, kind and character as IRS' and/or First State
Bank's collateral.
The security interests and liens granted to the IRS and First State
Bank will only act as adequate protection for the diminution in
value caused by Ms. Rigdon's use of cash collateral, if any.
A full-text copy of the Interim Order dated December 15, 2016, is
available at https://is.gd/5A4Y7c
About Carousel Properties, LLC
Carousel Properties, LLC filed a Chapter 11 petition (Bankr. N.D.
Tex. Case No. 16-44621), on December 2, 2016. The Petition was
signed by Bettye Jeanne Rigdon, president. The case is assigned to
Judge Russell F. Nelms. The Debtor is represented by Jeff P.
Prostok, Esq. at Forshey & Prostok, LLP. At the time of filing,
the Debtor had estimated $1 million to $10 million in both assets
and liabilities.
CENTRAL IOWA HEALTHCARE: Case Summary & 20 Top Unsec. Creditors
---------------------------------------------------------------
Debtor: Central Iowa Healthcare
fdba Marshalltown Medical & Surgical Center
3 South 4th Avenue
Marshalltown, IA 50158
Case No.: 16-02438
Nature of Business: Health Care
Chapter 11 Petition Date: December 20, 2016
Court: United States Bankruptcy Court
Southern District of Iowa (Des Moines)
Judge: Hon. Anita L. Shodeen
Debtor's
Reorganization
Counsel: Jeffrey D Goetz, Esq.
BRADSHAW, FOWLER, PROCTOR & FAIRGRAVE PC
801 Grand Ave, Ste 3700
Des Moines, IA 50309-8004
Tel: (515) 246-5817
Fax: (515) 246-5808
E-mail: goetz.jeffrey@bradshawlaw.com
- and -
Krystal R Mikkilineni, Esq.
801 Grand Ave, Ste 3700
Des Moines, IA 50309
Tel: (515) 246-5870
Fax: (515) 246-5808
E-mail: mikkilineni.krystal@bradshawlaw.com
Debtor's
Special
Healthcare
Reorganization
Counsel: Aaron L. Hammer, Esq.
Mark S. Melickian, Esq.
SUGAR, FELSENTHAL, GRAIS & HAMMER LLP
E-mail: ahammer@sfgh.com
mmelickian@sfgh.com
Debtor's
Financial &
Restructuring
Advisors: ALVAREZ & MARSAL HEALTHCARE INDUSTRY GROUP, LLC
Total Assets: $81.91 million
Total Liabilities: $20.02 million
The petition was signed by Dawnett Willis, acting CEO.
Debtor's List of 20 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Health Enterprises $1,147,395
5825 Dry Creek Lane NE
Cedar Rapids, IA 52402
Ms. Judy Sadler, CEO
Email: jsadler@healthenterprises.org
McFarland Clinic PC $993,522
PO Box 3014
1215 Duff Ave
Ames, IA
50010-3014
Mr. Andrew Perry, CEO
Tel: 541-207-7023
Email: aperry@mcfarlandclinic.com
Iowa Heart Center PC $768,071
5880 University Avenue
West Des Moines, IA 50266
Ms. Julie Younger
Tel: 515-633-3600
Email: jyounger@iowaheart.com
ICE Technologies $760,357
411 SE 9th Street
Pella, IA 50219
Mr. Ray Schreve, CFO
Tel: 641-628-0281
Email: rscheve@icetechnologies.com
McKesson Technologies Inc. $656,540
PO Box 98347
Chicago, IL
60693-8347
Ms. Kathy Riley
Tel: 404-338-3083
Email: arsupport@mckesson.com
Aramark Clinical Tech Services $524,630
12483
Collections Center Drive
Chicago, IL 60693
Mr. Jonathan Swichar, Esq.
Tel: 215-979-1816
Email: JLSwichar@duanemorris.com
Sound Physicians $447,597
PO Box 742936
Los Angeles, CA
90074-2936
Ms. Jenn Tallcott
Email: JTallcott@soundphysicians.com
Healogics Wound Care & $430,969
3087 Momentum Place
Chicago, IL 60689-5330
Mr. Tim Dunham
Tel: 904-446-3405
Email: Tim.Dunham@healogics.com
Aramark Corporation $338,879
27310 Network Place
Chicago, IL
Tel: 60673-1273
Mr. Jonathan Swichar, Esq.
Email: JLSwichar@duanemorris.com
Iowa Medicaid Enterprise $329,595
Provider Cost Audio & Rate
Setting
PO Box 36450
Des Moines, IA 50315
Alliant Energy/IPL $266,258
PO Box 3060
Cedar Rapids, IA
52406-3060
Alcon Laboratories Inc. $254,733
6500 Will Rogers Blvd
Dallas, TX
75267-7775
Ms. Kristen Brotherson
Tel: 807-568-7033
Resolution $231,487
PO Box 27093
Louisville, CO 80027
Ms. Robin Bradbury, President
Relay Health $231,393
Email: arsupporthold@mckesson.com
Mary Greeley $214,041
Medical Center
Delta Locum Tenens LLC $211,837
Email: WWillard@thedeltacompanies.com
McGuire Woods $155,271
Email: GCockrell@mcguirewoods.com
Physiotheraphy Associates $151,035
Select Medical
Email: BRaasch@myphysio.com
Hollis Cobb $150,885
COVENANT SURGICAL: S&P Rates New $42.5MM Sr. Sec. Notes 'B-'
------------------------------------------------------------
S&P Global Ratings assigned its 'B-' issue-level rating (the same
as the 'B-' corporate credit rating on the company) to Covenant
Surgical Partners Inc.'s proposed incremental $42.5 million senior
secured notes due 2019. S&P assigned a '4' recovery rating to this
debt, indicating its expectation for average (30%-50%, at the low
end of the range) recovery for lenders in the event of a payment
default. Covenant intends to use the proceeds to fund
acquisitions, to repay outstanding indebtedness under the revolving
credit facility, and for working capital and general corporate
purposes.
S&P's 'B-' corporate credit rating on Covenant, S&P's 'B+'
issue-level rating and '1' recovery rating on Covenant's existing
revolving credit facility, and S&P's 'B-' issue-level rating and
'4' recovery rating on Covenant's existing senior secured notes are
unchanged. The rating outlook is stable.
S&P's ratings on Covenant continue to reflect its small size and
narrow focus in a highly competitive industry, often competing at a
local level with other free-standing outpatient surgery centers,
hospitals, and even physician practices for certain procedures.
S&P's ratings also reflect its expectation of adjusted leverage of
10x-12x through 2017 and revenue growth of about 10%-15% over the
next year due to acquisitions.
RATINGS LIST
Covenant Surgical Partners Inc.
Corporate Credit Rating B-/Stable/--
New Rating
Covenant Surgical Partners Inc.
Consolidated Pathology Inc.
$42.5 Mil. Senior Secured
Notes Due 2019 B-
Recovery Rating 4L
CREEKSIDE CANCER: Seeks Court Approval for Cash Collateral Use
--------------------------------------------------------------
Creekside Cancer Care, LLC, asks the U.S. Bankruptcy Court for the
District of Colorado for authorization to use cash collateral.
The Debtor is indebted to:
(1) MidFirst Bank, which holds a claim in the approximate
amount of $2,399,000 secured by substantially all assets of the
Debtor. MidFirst Bank also holds a claim in the approximate amount
of $199,000 secured by the Debtor's accounts and their proceeds.
(2) Colorado Lending Source, Ltd., or CLS, which holds a
secured claim in the approximate amount of $1,588,592, secured by
substantially all the Debtor's assets.
(3) LiftForward, Inc., which holds a secured claim in the
approximate amount of $63,166.12, secured by substantially all the
Debtor's assets.
(4) Northeast Bank, which holds a secured claim in the
approximate amount of $1,750,000, secured by substantially all
assets of the Debtor.
The Debtor contends that TomoTherapy Incorporated and Byline
Financial Group may claim a security interest in the Debtor's cash
collateral. The Debtor further contends that it owes Byline
Financial Group $31,284 and that the indebtedness is secured by
substantially all the Debtor's assets.
The Debtor tells the Court that it needs to pay for operating
expenses such as employee wages, utilities, insurance, rent,
equipment maintenance, and other expense items. The Debtor further
tells the Court that if it is not permitted to use cash collateral,
the Debtor will not be able to pay its ordinary course expenses and
its operations will cease.
The Debtor's proposed Monthly Budget provides for total expenses in
the amount of $105,915.67.
The Debtor proposes to:
(1) provide secured creditors with a postpetition lien on all
postpetition accounts and income derived from the operation of the
business and assets, to the extent that the use of the cash results
in a decrease in the value of the secured creditors' interest in
the collateral;
(2) only use cash collateral in accordance with its proposed
Budget;
(3) keep all collateral fully insured;
(4) provide secured creditors with a complete accounting, on a
monthly basis, of all revenue, expenditures, and collections
through the filing of the Debtor's Monthly Operating Reports; and
(5) maintain in good repair all of the secured creditors'
collateral.
A full-text copy of the Debtor's Motion, dated December 16, 2016,
is available at
http://bankrupt.com/misc/CreeksideCancer2016_1621943mer_26.pdf
A full-text copy of the Debtor's proposed Budget, dated December
16, 2016, is available at
http://bankrupt.com/misc/CreeksideCancer2016_1621943mer_26_1.pdf
About Creekside Cancer Care, LLC
Creekside Cancer Care, LLC, filed a chapter 11 petition (Bankr. D.
Colo. Case No. 16-21943) on December 9, 2016. The petition was
signed by Charles Kelley Simpson, sole member. The Debtor is
represented by Steven E. Abelman, Esq., Samuel M. Kidder, Esq., and
Michael J. Pankow, Esq., at Brownstein Hyatt Farber Schreck, LLP.
The Debtor estimated assets and liabilities at $1 million to $10
million.
The Debtor is engaged in the business as a cancer care and
treatment center. The Debtor provides a range of non-invasive
radiation therapy treatment options to its patients. The Debtor is
based in Lafayette, CO.
DAILY HAVEN: Can Use Rialto Cash Collateral Until May 2017
----------------------------------------------------------
Judge Wendy L. Hagenau of the U.S. Bankruptcy Court for the
Northern District of Georgia authorized Daily Haven, Inc. to use
RREF II PB-GA, LLC's cash collateral until May 2017.
RREF II PB-GA, LLC, also known as Rialto, did not respond to the
Debtor's Cash Collateral Motion and did not appear at the hearing
on the Debtor's Motion.
Rialto assets a first priority security interest in the Debtor's
real estate located in Conyers, Georgia and improvements located
thereon. The Debtor is currently indebted to Rialto in the amount
of $521,360.
The Debtor's cash collateral consists of revenues directly related
to the use of the Debtor's property, and the facilities thereon.
The Debtor told the Court that it needed to use cash collateral on
an ongoing basis to preserve the value of its Property for the
benefit of all creditors and other parties in interest.
The approved Budget provides for total expenses in the amount of
$36,653,92 for December 2016, $29,347.56 for January 2017,
$29,147.56 for February 2017, $29,992.56 for March 2017, $28,887.56
for April 2017, and $30,037.56 for May 2017.
The Debtor was directed to pay Rialto the amount of $4,750 per
month beginning January 2017, with $9,500 paid instanter. Rialto
was granted a security interest in post-petition property and their
proceeds, of the same validity, extent and priority as its
pre-petition security interest.
A full-text copy of the Order, dated December 16, 2016, is
available at
http://bankrupt.com/misc/DailyHaven2016_1663419wlh_48.pdf
About Daily Haven, Inc.
Daily Haven, Inc., operates a Home Health Care and Day Center for
individuals with special needs in the Conyers area.
Daily Haven, Inc. filed a chapter 11 petition (Bankr. N.D. Ga. Case
No. 16-63419) on Aug. 1, 2016. The petition was signed by Suzann
Maughon, owner and chief officer. The Debtor is represented by
James B. Cronon, Esq., at the Law Office of James B. Cronon, LLC.
The Debtor estimated assets and liabilities at $500,000 to $1
million at the time of the filing.
DAILY HAVEN: Court Approves Use of RREF II PB Cash Collateral
-------------------------------------------------------------
Judge Wendy L. Hagenau of the U.S. Bankruptcy Court for the
Northern District of Georgia authorized Daily Haven, Inc. to use
the cash collateral of RREF II PB-GA, LLC.
The approved Budget provides total expenses of approximately
$184,067 for the period covering December 2016 through May 2017.
RREF II PB-GA had asserted a first priority security interest in
the Debtor's real estate located in Conyers, GA and improvements
located thereon as security for an indebtedness in the original
amount of $616,000, and which indebtedness is currently in the
approximate amount of $521,360.
The Debtor was directed to make adequate protection payments to
RREF II PB-GA in the amount of $4,750 per month beginning January
2017, with $9,500 to be paid instanter, which sums paid by the
Debtor will be applied as per the further Order of the Court.
RREF II PB-GA was granted a security interest in post-petition
property and the proceeds thereof of the same validity, extent and
priority as its pre-petition security interest.
The Debtor's authorization to use Cash Collateral will remain in
place until May 2017 or further Order of the Court, and will
terminate immediately upon the conversion of the Debtor's case to a
Chapter 7 proceeding, dismissal of the case, or upon the
appointment of a Chapter 11 Trustee.
A full-text copy of the Order, dated December 18, 2016, is
available at https://is.gd/Ipl5Xa
About Daily Haven
Daily Haven, Inc., operates a Home Health Care and Day Center for
individuals with special needs in the Conyers area.
Daily Haven, Inc. filed a chapter 11 petition (Bankr. N.D. Ga. Case
No. 16-63419) on Aug. 1, 2016. The petition was signed by Suzann
Maughon, owner and chief officer. The Debtor is represented by
James B. Cronon, Esq., at the Law Office of James B. Cronon, LLC.
The Debtor estimated assets and liabilities at $500,000 to $1
million at the time of the filing.
DAKOTA PLAINS: Case Summary & 7 Unsecured Creditors
---------------------------------------------------
Debtor affiliates filing separate Chapter 11 bankruptcy petitions:
Debtor Case No.
------ --------
Dakota Plains Holdings, Inc. 16-43711
294 Grove Lane East
Wayzata, MN 55391
Dakota Plains Transloading, LLC 16-43712
294 Grove Lane East
Wayzata, MN 55391
Dakota Plains Sand, LLC 16-43715
294 Grove Lane East
Wayzata, MN 55391
Dakota Plains MarketingG, LLC 16-43716
DPTS Marketing, LLC 16-43717
Dakota Petroleum Transport Solutions, LLC 16-43718
DPTS Sand, LLC 16-43721
Nature of Business: An integrated midstream energy company,
principally focused on developing and owning
transloading facilities and transloading crude
oil and related products within the Williston
Basin in North Dakota.
Chapter 11 Petition Date: December 20, 2016
Court: United States Bankruptcy Court
District of Minnesota (Minneapolis)
Judge: Hon. Michael E Ridgway
Debtors'
Counsel: BAKER & HOSTETLER LLP
Debtors' Co-Counsel: Michael F. McGrath, Esq.
RAVICH, MEYER, KIRKMAN, MCGRATH, NAUMAN
& TANSEY, P.A.
15 South Fifth Street, Suite 3450
Minneapolis, MN 55402-4201
Tel: 612-332-8511
Email: mfmcgrath@ravichmeyer.com
Debtors'
Financial
Advisor: CANACCORD GENUITY INC.
Total Total
Assets Debts
---------- -----------
Dakota Plains Holdings, Inc. $3.08M $75.38M
Dakota Plains Transloading, LLC $0 $74.82M
Dakota Plains Sand, LLC $0 $74.82M
The petitions were signed by Marty Beskow, chief financial
officer.
A list of Dakota Plains Holdings's seven largest unsecured
creditors is available for free at:
http://bankrupt.com/misc/mnb16-43711.pdf
A list of Dakota Plains Transloading's two largest unsecured
creditors is available for free at:
http://bankrupt.com/misc/mnb16-43712.pdf
A list of Dakota Plains Sand's 20 largest unsecured creditors is
available for free at:
http://bankrupt.com/misc/mnb16-43715.pdf
DAVMAR INVESTMENTS: Case Summary & 2 Unsecured Creditors
--------------------------------------------------------
Debtor: DAVMAR Investments, LLC
1530 West 10th Place
Tempe, AZ 85281
Case No.: 16-14284
Chapter 11 Petition Date: December 20, 2016
Court: United States Bankruptcy Court
District of Arizona (Phoenix)
Judge: Hon. Madeleine C. Wanslee
Debtor's Counsel: John C. Smith, Esq.
SMITH & SMITH LAW OFFICES, PLLC
6720 E Camino Principal, Ste. 203
Tucson, AZ 85715
Tel: 520-722-1605
Fax: 520-722-9096
E-mail: john@smithandsmithpllc.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Marla Stern, managing member.
A copy of the Debtor's list of two unsecured creditors is available
for free at http://bankrupt.com/misc/azb16-14284.pdf
DEDICATED STAGING: Case Summary & 6 Unsecured Creditors
-------------------------------------------------------
Debtor: Dedicated Staging LLC
1530 West 10th Place
Tempe, AZ 85280
Case No.: 16-14283
Chapter 11 Petition Date: December 20, 2016
Court: United States Bankruptcy Court
District of Arizona (Phoenix)
Judge: Hon. Madeleine C. Wanslee
Debtor's Counsel: John C. Smith, Esq.
SMITH & SMITH LAW OFFICES, PLLC
6720 E Camino Principal, Ste. 203
Tucson, AZ 85715
Tel: 520-722-1605
Fax: 520-722-9096
E-mail: john@smithandsmithpllc.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Marla Stern, managing member.
A copy of the Debtor's list of six unsecured creditors is available
for free at http://bankrupt.com/misc/azb16-14283.pdf
DELTA AIR: S&P Raises Rating on 2009A Airport Revenue Bonds to BB+
------------------------------------------------------------------
S&P Global Ratings said that it has reviewed its recovery and
issue-level ratings for Delta Air Lines Inc. that were labeled as
"under criteria observation" (UCO) after publishing its revised
recovery ratings criteria on Dec. 7, 2016. With S&P's criteria
review complete, it is removing the UCO designation from these
ratings and are lowering all of Delta's secured debt ratings on
bank revolving credit and term loans to 'BBB-' from 'BBB' because
S&P now caps issue ratings for most speculative-grade issuers at
'BBB-', regardless of S&P's recovery rating. This change
deemphasizes the weight recovery plays in the up-notching issue
ratings for issuers near the investment-grade threshold, since
recovery is a smaller component of credit risk when default risk is
more remote and because recovery prospects may be less predictable
and more variable for these issuers.
Importantly, this revision does not reflect a change in S&P's
assessment of the company's default risk, which is indicated by
S&P's corporate credit rating, or its opinion of recovery given
default, which is indicated by S&P's '1' recovery ratings,
indicating its expectation of very high (90% to 100%) recovery in a
default scenario.
Separately, S&P raised its issue rating on Delta's Clayton County
Development Authority airport revenue bonds, series 2009A, due
2029, to 'BB+' from 'BB'. S&P do not assign recovery ratings to
airport revenue bonds, but it views these as equivalent to senior
unsecured debt. S&P's recovery review indicated that it would
views recovery prospects for senior unsecured claims as a '4',
indicating S&P's expectation of average (30% to 50%, at the high
end of the range) recovery in a default scenario. S&P assigns an
issue rating equal to the corporate credit rating in such cases,
one notch higher than S&P's current rating for the Clayton County
bonds.
These rating actions stem solely from the application of S&P's
revised recovery criteria and do not reflect any change in its
assessment of the corporate credit ratings for issuers of the
affected debt issues.
RATINGS LIST
Issue Ratings Lowered, Recovery Ratings Unchanged Due To Revised
Recovery Rating Criteria For Speculative-Grade Corporate Issuers
To From
Delta Air Lines Inc.
Senior secured BBB- BBB
Recovery rating 1 1
Ratings Raised
Delta Air Lines Inc.
Clayton County airport revenue bonds
series 2009A due 2029 BB+ BB
DIRECT MEDIA: Wants to Utilize Cash Collateral Thru January 19
--------------------------------------------------------------
Direct Media Power, Inc. seeks authorization from the U.S.
Bankruptcy Court Northern District of Illinois to use Cash
Collateral on an interim basis.
The proposed Budget provides total expenses of $238,460 for the
period from November 28, 2016 through the week commencing on
January 19, 2017.
The Debtor is one of the largest broadcast pay per call media
agencies in the United States and is regularly approached by radio
networks throughout the country to pre-pay for unsold radio
commercial airtime. Among its other related businesses, the Debtor
acquires unsold commercial airtime on major national and local
radio networks and sells the airtime to clients.
The Debtor requires the use of its cash only to the extent that
such use is necessary to maintain ordinary, day-to-day business
operations and avoid immediate and irreparable harm to the estate
pending a final hearing on the use of cash collateral, specifically
to pay its employees, to prepay radio networks and stations for
their previously unsold airtime, to pay rent, and for other usual
and customary business purposes.
The Debtor contends that the use of cash collateral will redound to
the benefit of creditors -- secured and unsecured alike -- by
keeping its robust business alive and assisting it in its realistic
reorganization efforts.
The Debtor contends that these entities are its only secured
creditors:
(a) Radio One has a lien upon the Debtor's cash under a
default judgment in the amount of $1,398,659 for breach of
contract, issued by the U.S. District Court for the Northern
District of Illinois, Case No. 16-cv-01867. The citation lien of
Radio One was acquired at or within a few days prior to the
commencement of the Debtor's chapter 11 case and is subject to
avoidance as a preference.
(b) MCA Fixed Payment, appears to have a security interest in
and claiming as collateral "all of the Debtor's tangible and
intangible assets." MCA Fixed is owed approximately $71,800
pursuant to a merchant cash advance agreement.
(c) New Era Lending have a security interest in Debtor's cash
and is owed approximately $123,200 pursuant to a merchant cash
advance agreement.
(d) Ace Funding Source have a security interest in Debtor's
cash and is owed approximately $81,800 pursuant to a merchant cash
advance agreement.
The Debtor seeks authorization from the Court to provide adequate
protection to its Secured Creditors, by providing its Secured
Creditors with replacement liens in the its post-petition assets,
which replacement liens will have the same status, validity and
priority as the pre-petition liens of the respective Secured
Creditors.
A full-text copy of the Debtor's Motion, dated December 15, 2016,
is available at https://is.gd/jPN2UK
A full-text copy of the proposed Budget, dated December 15, 2016,
is available at https://is.gd/xL40Bb
About Direct Media Power
Established in 2010 and located Wood Dale, Illinois, Direct Media
Power, Inc., also known as DMP Teleservices, Inc., is a large
privately owned liquidator of unsold prime commercial radio airtime
nationwide.
Direct Media Power, Inc. sought Chapter 11 protection (Bankr. N.D.
Ill. Case No. 16-36934) on Nov. 21, 2016. The petition was signed
by Dean Tucci, president. Judge Timothy A. Barnes is assigned to
the case. At the time of filing, the Debtor estimated assets at
$100,000 to $500,000 and liabilities at $1 million to $10 million.
The Debtor is represented by Adam S Tracy, Esq., at The Tracy Firm,
Ltd.
ELK CREEK: Can Use Yadkin Bank Cash Until February 15
-----------------------------------------------------
Judge Laura T. Beyer of the U.S. Bankruptcy Court for the Western
District of North Carolina authorized Elk Creek International, Inc.
to use Yadkin Bank's cash collateral on an interim basis through
February 15, 2017.
Yadkin Bank was granted a valid, perfected, and enforceable
security interest in the rolling stock, consisting of titled motor
vehicles, owned by the Debtor, to the extent the Debtor's accounts
receivable -- valued at $59,958 -- are actually diminished during
the period prior to plan confirmation. Such Replacement Lien will
secure a maximum of $20,000, and is equivalent to a lien granted
under 11 U.S.C. Section 364(c)(2).
Judge Beyer directed the Debtor to make a $7,500 monthly adequate
protection payments to Yadkin Bank. Judge Beyer held that if the
Debtor's available cash which is not necessary for ordinary and
usual business operating expenses exceeds $10,000.00 on the
fifteenth of any month, the Debtor will pay Yadkin Bank an
additional $2,500 (for a total adequate protection payment of
$10,000.00.
A continued hearing on the Debtor's Motion will be held on February
15, 2017 at 9:30 a.m.
A full-text copy of 4th Interim Order, dated December 15, 2016 is
available at https://is.gd/mssaIf
A full-text copy of 5th Interim Order, dated December 15, 2016 is
available at https://is.gd/nRqfcp
A full-text copy of 6th Interim Order, dated December 15, 2016 is
available at https://is.gd/vHaZwj
About Elk Creek International
Elk Creek International, Inc., fdba Elk Creek Lumber Inc., fdba Elk
Creek Properties, LLC, sought protection under Chapter 11 (Bankr.
W.D.N.C. Case No. 16-50423) on July 5, 2016. The petition was
signed by David M. Blair, president. The Debtor is represented by
James H. Henderson, Esq., at The Henderson Law Firm. The case is
assigned to Judge Laura T. Beyer. The Debtor estimated assets of
$0 to $50,000 and debts of $1 million to $10 million at the time of
the filing.
EVOSHIELD LLC: Hires Lamberth Cifelli as Attorney
-------------------------------------------------
Evoshield, LLC, seeks authority from the U.S. Bankruptcy Court for
the Middle District of Georgia to employ Lamberth Cifelli Ellis &
Nason, P.A., as attorney to the Debtor.
Evoshield, LLC, requires Lamberth Cifelli to:
(a) advise, assist, and represent the Debtor with respect to
the Debtor's rights, powers, duties, and obligations in
the administration of this case, and the collection,
preservation, and administration of assets of the Debtor's
estate;
(b) advise, assist, and represent the Debtor with regard to
any claims and causes of action which the estate may have
against various parties including, without limitation,
claims for preferences, fraudulent conveyances, improper
disposal of assets, and other claims or rights to recovery
granted to the estate; to institute appropriate adversary
proceedings or other litigation and to represent the
Debtor therein with regard to such claims and causes of
action; and to advise and represent the Debtor with regard
to the review and analysis of any legal issues incident to
any of the foregoing;
(c) advise, assist, and represent the Debtor with regard to
investigation of the desirability and feasibility of the
rejection or assumption and potential assignment of any
executory contracts or unexpired leases, and to advise,
assist, and represent the Debtor with regard to liens and
encumbrances asserted against property of the estate and
potential avoidance actions for the benefit of the estate,
within the Debtor S&P's rights and powers under the
Bankruptcy Code, and the initiation and prosecution of
appropriate proceedings in connection therewith;
(d) advise, assist, and represent the Debtor in connection
with all applications, motions, or complaints concerning
reclamation, sequestration, relief from stays, disposition
or other use of assets of the estate, and all other
similar matters;
(e) advise, assist, and represent the Debtor with regard to
the preparation, drafting, and negotiation of a plan of
liquidation and accompanying disclosure statement, or
negotiation with other parties presenting a plan of
liquidation and accompanying disclosure statement; the
preparation, filing, and service as required of
appropriate motions, notices, and other pleadings as may
be necessary to comply with the Bankruptcy Code with
regard to all of the foregoing;
(f) prepare pleadings, applications, motions, reports, and
other papers incidental to administration, and to conduct
examinations as may be necessary pursuant to Bankruptcy
Rule 2004 or as otherwise permitted under applicable law;
(g) provide support and assistance to the Debtor with regard
to the proper receipt, disbursement, and accounting for
funds and property of the estate;
(h) provide support and assistance to the Debtor with regard
to the review of claims against the Debtor, the
investigation of amounts properly allowable and the
appropriate priority or classification of same, and the
filing and prosecution of objections to claims as
appropriate;
(i) perform any and all other legal services incident or
necessary to the proper administration of this case and
the representation of the Debtor in the performance of its
duties and exercise of its rights and powers under the
Bankruptcy Code.
Lamberth Cifelli will be paid at these hourly rates:
James Craig Cifelli $495
Stuart F. Clayton, Jr. $360
Gregory D. Ellis $450
Sharon K. Kacmarcik $350
J. Michael Lamberth $495
G. Frank Nason, IV $395
Christopher D. Phillips $250
Paralegal $110-$195
Lamberth Cifelli will be paid a retainer in the amount of $25,000.
Lamberth Cifelli will also be reimbursed for reasonable
out-of-pocket expenses incurred.
Gregory D. Ellis, a member of Lamberth Cifelli, 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.
Lamberth Cifelli can be reached at:
Gregory D. Ellis, Esq.
LAMBERTH CIFELLI ELLIS & NASON, P.A.
1117 Perimeter Center West, Suite W212
Atlanta, GA 30338
Tel: (404) 262-7373
Fax: (404) 262-9911
About Evoshield, LLC
EvoShield, LLC, sought Chapter 11 protection (Bankr. M.D. Ga. Case
No. 16-31159) on Oct. 31, 2016. The Debtor tapped Thomas Raymond
Walker, Esq. at McGuirewoods LLP and Miles H. Cohn, Esq. at Crain
Caton & James, P.C. as counsel.
HANISH LLC: Wants to Use Phoenix REO Cash Collateral Until March 31
-------------------------------------------------------------------
Hanish, LLC seeks authority from the U.S. Bankruptcy Court for the
District of New Hampshire to use cash collateral, mostly in the
form of hotel room rentals for the third interim period, from
January 12, 2017 through March 31, 2017.
The Debtor intends to use the cash collateral to directly fund the
operation of the Hotel.
The Debtor tells the Court that its business would be forced to
shut down and evict customers if the Debtor will not be permitted
use of cash during the Extended Second Interim Period. The Debtor
further tells the Court that it will also be subjected to
significant franchise penalties if operations terminate.
The Debtor's proposed a 3-month budget provides for the use of cash
collateral from January 2017 through March 2017, projecting hotel
expenses in the aggregate amount of $379,008, which comprises of
$249,369 operating expenses and $129,639 of payroll and other
related expenses.
The only lien that Debtor is aware of on the Hotel is the lien of
Phoenix REO, LLC, which is a blanket lien on real estate and
personal property in the claimed amount of over $6.88 million
secured by a Mortgage, Assignment of Leases and Rents, Security
Agreement and Fixture Filing in favor of Phoenix REO.
Phoenix NPL, LLC purchased a Construction Loan Agreement underlying
the Hotel and the Debtor evidenced by a Promissory Note in the
original principal amount of $5,900,000 and a Second Promissory
Note in the original principal amount of $450,000 from the Federal
Deposit Insurance Corporation, as Receiver for The National
Republic Bank of Chicago, the original Lender of the Debtor.
Thereafter Phoenix NPL assigned the Loans to Phoenix REO.
As adequate protection, the Debtor proposes to pay Phoenix REO
$20,000 per month. Phoenix REO has the guaranty of Nayan Patel as
additional adequate protection. Post-Petition real estate taxes
will be paid through the Budget. The Debtor further proposes to
provide Phoenix REO with a replacement lien in its assets
consistent with its pre-petition lien, including hotel rents.
A hearing on the Debtor's Motion is scheduled on January 12, 2017,
2016 at 9:00 a.m. The deadline for the filing of objections is set
on January 5, 2017.
A full-text copy of the Debtor's Assented Motion, dated December
15, 2016, is available at https://is.gd/on3HZF
A full-text copy of the Debtor's Third Cash Collateral Motion,
dated December 15, 2016, is available at https://is.gd/NZyJD0
A full-text copy of the Budget, dated December 15, 2016, is
available at https://is.gd/y9kCzD
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 April 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 $1 million to $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
HEBREW HEALTH: Has Until Jan. 27 to Use Cash Collateral
-------------------------------------------------------
Judge Julie A. Manning of the U.S. Bankruptcy Court for the
District of Connecticut authorized Hebrew Heath Care, Inc., et al.
to use cash collateral on an interim basis, for the period Dec. 17,
2016 through Jan. 27, 2017.
Judge Manning acknowledged that the Debtors do not have sufficient
available sources to provide working capital to operate their
businesses in the ordinary course without being allowed to use cash
collateral. She further acknowledged that the Debtor's ability to
provide patient services, and to maintain their business
relationships with vendors, suppliers and employees, and to
otherwise fund their operations, are essential to the Debtor's
viability.
Secured Creditors Wells Fargo Bank, National Association, the
United States Department of Housing and Urban Development, U.S.
Bank, National Association, as Bond Trustee, and TD Bank, National
Association, and the State of Connecticut Department of Revenue
Services, or DRS, consented to the Debtor's use of cash collateral
on an interim basis.
Debtor Hebrew Home and Hospital is indebted to Wells Fargo in the
amount of at least $10,797,178. The indebtedness is secured by
valid, enforceable, properly perfected and unavoidable first
priority liens and security interests in Hebrew Home and Hospital's
real property and all leases and rents derived from it, and all
Hebrew Home and Hospital's personal property, subordinate only to
the superpriority liens in cash, accounts receivable, and accounts
granted to Hebrew Home DIP Financing, LLC, in connection with the
postpetition financing approved by the Court.
Hebrew Home and Hospital is also indebted to the Department of
Housing and Urban Development in the amount of $11,389,241.65. The
indebtedness is secured by valid, enforceable, properly perfected
and unavoidable liens and security interests in Hebrew Home and
Hosptial's Collateral, subordinate only to the superpriority liens
in cash, accounts receivable, and accounts granted to the DIP
Lender in connection with the DIP Financing; and the liens and
security interests of Wells Fargo held in all of Hebrew Health
Care's Collateral.
Debtor Hebrew Life Choices is indebted to TD Bank in the amount of
at least $14,890,000. The indebtedness is secured by valid,
enforceable, properly perfected and unavoidable liens and security
interests in Hebrew Life Choices' Real Property and all leases and
rents derived from them; and all personal property of Hebrew Life
Choices, subordinate only to the superpriority liens in cash,
accounts receivable, and accounts granted to the DIP Lender in
connection with the DIP Financing.
The approved Consolidated Budget provided for total cash
disbursements in the amount of $7,250,700 for the period December
10, 2016 through the week beginning March 4, 2017.
Wells Fargo was granted valid and automatically perfected
first-priority replacement liens on and replacement security
interests in and upon the Hebrew Home and Hospital Cash Collateral
to the same extent, validity and priority as Wells Fargo possessed
as of the Petition Date, subject only to the liens against
accounts, accounts receivable, and cash and super-priority
administrative expense granted to the DIP Lender in connection with
the DIP Financing, the Carve-Out.
The Department of Housing and Urban Development was granted valid
and automatically perfected second-priority replacement liens on
and replacement security interests in and upon Hebrew Home and
Health's Collateral to the same extent, validity and priority as
the Department of Housing and Urban Development possessed as of the
Petition Date, subject only to the liens against accounts, accounts
receivable, and cash and super-priority administrative expense
granted to the DIP Lender in connection with the DIP Financing and
the liens and security interests held by Wells Fargo.
U.S. Bank was granted automatically perfected replacement liens on
and replacement security interests in and upon the Hebrew Life
Choices Cash Collateral to the same extent, validity and priority
as U.S. Bank possessed as of the Petition Date, subject only to the
liens against accounts, accounts receivable, and cash and
super-priority administrative expense granted to the DIP Lender in
connection with the DIP Financing, the Carve-Out and the Preserved
Actions.
TD Bank was granted valid and automatically perfected replacement
liens on and replacement security interests in and upon the Hebrew
Life Choices Collateral to the same extent, validity and priority
as TD Bank possessed as of the Petition Date, subject only to the
liens against accounts, accounts receivable, and cash and
super-priority administrative expense granted to the DIP Lender in
connection with the DIP Financing and the liens and security
interests held by U.S. Bank.
As adequate protection of the right asserted by the Department of
Revenue Services, or the DRS, to setoff amounts due and owing to
Hebrew Home and Hospital by the State of Connecticut, Department of
Social Services in connection with the Medicaid program for
services provided by Hebrew Home and Hospital prior to the Petition
Date, against amounts that DRS alleges are due and owing by Hebrew
Home and Hospital to the DRS for unpaid provider taxes arising
prior to the Petition Date, DRS' asserted right to setoff against
the Prepetition Medical Payables will attach to all Medicaid
Payables due and owing to Hebrew Home and Hospital for services
provided by it after the Petition Date.
The Carve-Out consists of:
(1) allowed fees and reimbursement for disbursements of
professionals retained by the Debtors in an aggregate amount for
all such Debtors' Professional Fees not to exceed $350,000.00;
(2) allowed fees and reimbursement for disbursements of
professionals retained by the Official Committee of Unsecured
Creditors in an aggregate amount of all such Official Committee's
Professional Fees not to exceed $175,000.00;
(3) quarterly fees pursuant to 28 U.S.C. Section 1930(a)(6)
plus interest accrued pursuant to 31 U.S.C. Section 3717, and any
fees payable to the clerk of the Bankruptcy Court; and
(4) amounts due and owing to the Debtors' non-insider
employees for post-petition wages.
A full-text copy of the Order, dated Dec. 16, 2016, is available at
http://bankrupt.com/misc/HebrewHealth2016_1621311_468.pdf
About Hebrew Health Care, Inc.
Hebrew Health Care, Inc., Hebrew Life Choices, Inc., Hebrew
Community Services, Inc., and Hebrew Home and Hospital,
Incorporated, filed Chapter 11 petitions (Bankr. D. Conn. Case Nos.
16-21311, 16-21312, 16-21313, and 16-21314, respectively) on Aug.
15, 2016. The petitions were signed by Bonnie Gauthier, CEO. Their
cases are assigned to Judge Ann M. Nevins.
At the time of the filing, Hebrew Health Care, Inc., estimated
assets at $1 million to $10 million and liabilities at $100,000 to
$500,000; Hebrew Life Choices estimated assets at $10 million to
$50 million and liabilities at $10 million to $50 million; Hebrew
Community Services estimated assets at $500,000 to $1 million and
liabilities at $100,000 to $500,000; and Hebrew Home and Hospital
estimated assets at $1 million to $10 million and liabilities at
$10 million to $50 million.
The Debtors are represented by Elizabeth J. Austin, Esq., at
Pullman and Comley, LLC.
The United States Trustee for Region 2 appointed The Connecticut
Light and Power Company, McKesson Corporation, and Morrison
Management Specialists, Inc. to serve on the Official Committee of
Unsecured Creditors.
HOPKINTON DRUG: Dec. 15 Cash Collateral Hearing Cancelled, Moot
---------------------------------------------------------------
Judge Christopher J. Panos the U.S. Bankruptcy Court for the
District of Massachusetts cancelled the scheduled December 15, 2016
hearing on Hopkinton Drug, Inc.'s continued use of cash collateral
as being moot, as a plan had already been confirmed.
A full-text copy of the Order, dated December 15, 2016, is
available at https://is.gd/G6u7mU
About Hopkinton Drug, Inc.
Hopkinton Drug, Inc. operates both a gift store and a community
retail pharmacy in Hopkinton. Aside from manufactured
pharmaceuticals, the Debtor sells medical equipment and garments,
provides counseling, and ships prescription medications to
customers in a number of states.
The Debtor sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. D. Mass. Case No. 16-40234) on February 19, 2016. The
petition was signed by Dennis Katz, president. The case is
assigned to Judge Christopher J. Panos. At the time of the filing,
the Debtor estimated its assets and debts at $1 million to $10
million.
The Debtor is represented by David M. Nickless, Esq., at Nickless,
Phillips and O'Connor.
INTERPARK INVESTORS: Can Continue Using Cash Thru March 17
----------------------------------------------------------
Judge Carol A. Doyle of the U.S. Bankruptcy Court for the Northern
District of Illinois authorized Interpark Investors, LLC to
continue using cash collateral through March 17, 2017.
The approved 90-day Budget covers the period beginning December 18,
2016 through March 17, 2017, reflecting total CAM operating
expenses of $99,535, total Non-CAM operating expenses of $20,500,
and capital expenses of approximately $14,355.
Judge Doyle acknowledged that Athene Annuity and Life Company f/k/a
Aviva Life and Annuity Company have consented to the Debtor's
continued use of cash collateral.
A status hearing on the Debtor's use of cash collateral will be
conducted on March 9, 2017 at 10:30 a.m.
A full-text copy of the Order, dated December 15, 2016, is
available at https://is.gd/sYRyui
About Interpark Investors
Interpark Investors, LLC, sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. N.D. Ill. Case No. 16-04404) on Feb. 12,
2016. The petition was signed by John J. Fitzmaurice, manager of
Interpark Manager, LLC, the Debtor's manager. The case is assigned
to Judge Carol A. Doyle. The Debtor estimated assets and
liabilities at $10 million to $50 million at the time of the
filing. The Debtor is represented by Peter J. Roberts, Esq., at
Shaw Fishman Glantz & Towbin LLC.
Interpark Investors, LLC, is an Illinois limited liability company
that owns and operates two real estate parcels commonly known as
(i) 8601-8623 West Bryn Mawr Avenue, Chicago, IL, and (ii)
8600-8622 West Catalpa Avenue, Chicago, IL.
Though the Company acquired the Properties as a single Class B
multitenant office development consisting of 12 single-story
buildings and known as Interpark Corporate Center, the Company has
since divided the two Properties into two separate projects.
The Company continues to operate the Catalpa Property, which is the
southern parcel, as an office park with several commercial
tenants.
However, prior to the Petition Date, the Company terminated the
office rental operations at the Bryn Mawr Property, which is the
northern parcel, and slated it for demolition and redevelopment as
a seven-story, 394-unit residential apartment complex with 9,500
square feet of retail space.
Shortly before the Petition Date, the Company engaged CBRE, Inc.,
to sell the Bryn Mawr Property. The Company intends to use the
proceeds generated from the sale of the Bryn Mawr Property to pay
down secured debt. The Company intends to retain the Catalpa
Property.
Based on the most recent appraisal conducted on the Properties,
plus recent broker opinions of value, the Debtor asserts that the
collective value of the Properties exceeds $23 million. CBRE has
estimated that the value of the Bryn Mawr Property alone exceeds
$17 million.
INTERTAIN GROUP: S&P Cuts Rating on GBP90MM 2nd Lien Term Loan to B
-------------------------------------------------------------------
S&P Global Ratings said it lowered its issue level ratings on
online gaming company The Intertain Group Ltd.'s proposed
GBP90 million second-lien term loan to 'B' from 'B+', and revised
the recovery rating on the debt to '5' from '3'. The '5' recovery
rating indicates S&P's expectation of average (10%-30%; lower half
of the range) recovery in the event of a default.
At the same time, S&P Global Ratings affirmed its 'B+' long-term
corporate credit rating on Intertain. The outlook is stable. S&P
Global Ratings also affirmed its 'BB' issue-level rating, with a
'1' recovery rating, on the first-lien debt, which also factors in
the incremental proposed issuance of GBP70 million. A '1' recovery
rating indicates S&P's expectation of very high recovery (90%-100%)
in the event of a default.
"The downgrade reflects the change in financing mix for prepaying
the non-Spanish earn-out obligation," said S&P Global Ratings
credit analyst Andrew Ng. The new proposed financing would consist
of an incremental GBP70 million on the first lien and GBP90 million
on the second lien, compared with the previous GBP160 million
second-lien term loan issuance. "Due to the higher amount of
first-lien debt, the recovery prospects on the second lien in the
event of a default have fallen, leading to the recovery rating
revision," Mr. Ng added.
The affirmation on the corporate credit rating reflects S&P's view
that the proposed debt issuance, which Intertain will use to prepay
the earn-out obligation of C$250 million, will not affect the
company's credit metrics, because S&P had already factored it into
its adjusted debt calculations in deriving the adjusted
debt-to-EBITDA. Loan proceeds will prepay the non-Spanish earn-out
obligation in 2016; cash flows will fund the rest of the
obligation, which is due in 2017. S&P expects Intertain will
remain in the significant financial risk profile category, with
adjusted debt-to-EBITDA, including the earn-out obligation, below
4x in 2017. S&P expects the company to generate robust free
operating cash flow reflecting its ability to retain customers
through its product offerings and its ability to enter newer
jurisdictions, which further attests to its leading position in the
online bingo market globally. Also, Intertain benefits from a
strong cash conversion ratio of about 90% based on its very low
capital expenditure requirements.
The stable outlook on Intertain reflects S&P's view that the
company will generate robust free operating cash flow based on its
ability to retain customers and enter into newer markets along with
its global leading position in the online bingo market. S&P
expects the company to have adjusted debt-to-EBITDA of less than 4x
in 2017 with the remaining portion of the earn-out obligation being
funded with operating cash flow along with adequate levels of
liquidity.
S&P could lower the ratings if adjusted debt-to-EBITDA rises to
above 4x a year, which would likely indicate lower earnings,
reduced free cash flow expectations, and weaker prospects for
funding its earn-outs internally.
S&P could raise the ratings if the company sustains adjusted
debt-to-EBITDA below 3x, which will result from improving
profitability that confirms the strength of its online gaming
platforms and steady improving free operating cash flow.
KANE CLINICS: Wants Court to Authorize Cash Collateral Use
----------------------------------------------------------
The Kane Clinics LLC asks the U.S. Bankruptcy Court for the
Northern District of Georgia for authorization to use cash
collateral.
The Debtor's business is focused on undeserved populations and
largely Hispanic patients. Many of its patients are self-pay or
Medicaid patients.
The Debtor says that its lowest income months are November,
December and January, as many patients forego medical services so
as to have funds for the Holidays. The Debtor further says that
since the Presidential election, many self-pay clients have become
nervous regarding immigration policies and have been shying away
from seeking medical services. The Debtor adds that it is working
through a cash crunch, which should resolve itself in the early
part of 2017.
The Debtor contends that it has learned that the transition to a
new debtor in possession bank account will cause a 15-business day
delay in receipt of Medicaid receivables. The Debtor does not
anticipate receiving any additional Medicaid receivable payments
until the week of Jan. 9, 2017 and further contends that the
proposed Budget anticipates receiving the funds that would
otherwise be received in December 2016 being received in January
2017.
The Debtor has approximately $5,000 in available cash, and
approximately $164,000 in outstanding Medicaid receivables and
$92,000 in collectable private insurance. The Debtor relates that
majority of its receivables are Medicaid and that it typically
collects its Medicaid receivables 90-120 days out from invoice
date.
The Debtor tells the Court that in order to effectively reorganize,
it must have access to cash to pay for the expenses of its
Business, including its employees, contractors and landlords. The
Debtor further tells the Court that if it cannot use cash
collateral to pay for operating expenses, including insurance,
taxes, wages, utilities and supplies of the Business, the going
concern value will be significantly harmed and the estate and
creditors will be negatively affected. The Debtor adds that it
requires the ability to carry on its regular business activities,
including paying for its work force on December 31, 2016 and
carrying other operating costs such as purchasing weekly inventory
and paying lab fees.
The Debtor's proposed Budget provides for total expenses in the
amount of $85,072 for the period December 16, 2016 to December 31,
2016, $274,096 for January 2017, $261,528 for February 2017,
$259,628 for each of the months of March 2017 and April 2017.
The Debtor is indebted to SunTrust Bank in the amount of
approximately $472,000. SunTrust Bank asserts a lien upon and
security interest in the Debtor's right to payment for services
rendered, accounts, and instruments which represent cash
collateral. SunTrust Bank also assets a fourth priority lien in
the cash collateral, and outstanding debt of approximately
$1,125,000.
LiftForward, Inc. asserts a second priority lien in the cash
collateral, as well as outstanding indebtedness of approximately
$330,000.
JP Morgan Chase Bank, NA, to whom the Debtor owes $249,363.67,
asserts a third priority lien in the Debtor's cash collateral.
The Debtor proposes to grant its secured creditors with a
replacement lien and security interest in all property acquired by
the Debtor after the Filing Date, as to which such secured creditor
had held valid and perfected liens or security interests in the
pre-petition collateral on the Filing Date.
A final hearing on the Debtor's Motion is scheduled on February 7,
2017 at 10:15 a.m. The deadline for the filing of objections to
the Debtor's Motion is set on January 15, 2017.
A full-text copy of the Debtor's Motion, dated Dec. 16, 2016, is
available at
http://bankrupt.com/misc/KaneClinics2016_1672304lrc_10.pdf
The Kane Clinics, LLC is represented by:
Leslie M. Pineryo, Esq.
JONES & WALDEN, LLC
21 Eighth Street, NE
Atlanta, GA 30309
Telephone: (404) 564-9300
E-mail: lpineryo@joneswalden.com
About The Kane Clinics, LLC
The Kane Clinics, LLC filed a chapter 11 petition (Bankr. N.D. Ga.
Case No. 16-72304) on Dec. 14, 2016. The Debtor is represented by
Leslie M. Pineryo, Esq., at Jones & Walden, LLC.
The Debtor is a Georgia limited liability company. It operates
obstetrics and gynecological clinics with an emphasis on serving
uninsured and undeserved patients.
KARHOO INC: Chapter 15 Case Summary
-----------------------------------
Chapter 15 Debtors:
Karhoo Inc. (in administration) 16-13545
c/o Sidley Austin LLP
787 Seventh Avenue
New York, NY 10019
Karhoo USA Inc. (in administration) 16-13546
Karhoo Limited (in administration) 16-13547
Karhoo Technologies Limited (in administration) 16-13548
Chapter 15 Petition Date: December 20, 2016
Court: United States Bankruptcy Court
Southern District of New York (Manhattan)
Foreign Representative: Paul Cooper, as Administrator in UK
Proceedings
Foreign Representative's
Counsel: Michael G. Burke, Esq.
SIDLEY AUSTIN LLP
787 Seventh Avenue
New York, NY 10019
Tel: (212) 839-5300
Fax: (212) 839-5699
E-mail: mgburke@sidley.com
Estimated Assets: Not Indicated
Estimated Debts: Not Indicated
A full-text copy of the petition is available for free at:
http://bankrupt.com/misc/nysb16-13545.pdf
KARHOO INC: London-Based Taxi App Files for Chapter 15 Bankruptcy
-----------------------------------------------------------------
The administrators of Karhoo Inc., a London-based start-up that
offered a taxi-booking app as an alternative to Uber/Lyft, sought
Chapter 15 bankruptcy protection in New York to seek recognition of
its insolvency proceedings in the United Kingdom.
Founded in November 2014 in London, England, by Daniel Ishag,
Karhoo Inc., et al., are part of a group of companies that offered
a ride comparison app" as an alternative to the Uber/Lyft
"ride-sharing app" model. Instead of maintaining its own fleet of
drivers and cars, Karhoo contracted with local dispatchers and
fleet owners, providing customers with a choice of vehicles and
prices through its mobile application.
Karhoo entered into approximately 700 contracts with fleet owners
(the "Supplier Contracts") and approximately 21 contracts with
dispatchers (the "Dispatch Contracts") in the cities in which it
did business, primarily London and several other cities in
England.
In total, Karhoo employed approximately 200 employees, the vast
majority of whom have been laid off or made redundant in recent
weeks.
The Debtors' (and Karhoo's) only funded debt is approximately $18
million in Secured Convertible Term Notes due March 11, 2017 (the
"Secured Notes") under that certain Securities Purchase Agreement
among Karhoo Inc., the Purchasers thereunder, and DNK USA, LLC as
administrative and collateral agent (the "Agent") for the
Purchasers dated October 11, 2016 (the "Securities Purchase
Agreement").
A total of 100,691,318 shares of Karhoo Inc. are outstanding, the
sale of which had generated approximately $33.65 million in capital
for Karhoo, in six rounds of sales.7 35.65% of the shares are held,
directly or indirectly (including through Powerful Ace Ltd.), by
Daniel Ishag. Other co-founders of Karhoo, all UK residents, hold
21.35%. The remaining 42.99% of the shares are held by several
dozen investors.
Misuse of Promotional Codes
Since its founding, Karhoo aggressively marketed itself, seeking
both a larger share of the market in the cities it operated in and
a larger number of cities in which to operate. Karhoo expanded
from its London roots to nine other English cities, New York (where
Karhoo was at a pilot stage), Paris, and Singapore, and had plans
to operate in another 29 cities worldwide, including other major
population centers in Europe and the United States, by the end of
2016. Karhoo expected to be in 400 cities by the end of 2020.
This expansion and marketing would require significant amounts of
capital.
However, Karhoo encountered a number of difficulties that proved to
be insurmountable. These difficulties included the misuse and
misaccounting of promotional codes (often for rides of up to $40),
which were given out indiscriminately, which users would often use
for the most expensive trip possible, and which Karhoo permitted
users to re-use. In October 2016, approximately 70% of Karhoo's
bookings were using promotional codes. Similarly, in an effort to
retain users, Karhoo was generous with its refunds and other
compensation for poor experiences. Karhoo also had problems with
the fraud protections in its payment processing system, such as
verifying a user's address or requiring an email address to set up
an account, leading to the rejection of many credit card payments
(at one point, reportedly reaching a 90% rejection rate).
Beginning around the beginning of October, many of Karhoo's
employees began working without pay in an attempt to turn around
the business. At the end of October, Karhoo missed payroll in both
the United States and Israel; on Nov. 6, 2016, Karhoo Israel had to
put its employees in the Israeli R&D Center on notice of
termination. In the meantime, Karhoo actively was seeking an
infusion of outside capital (in addition to the capital raised
through the sale of the Secured Notes), with company
representatives courting investors on multiple continents; by Nov.
7, 2016, the focus was on one particular investor who was being
provided reassurances about the state of Karhoo's business, and who
would not have the opportunity to do due diligence. Karhoo's
management expressed a willingness to put $600,000 into Karhoo if
the investment were procured. However, Karhoo's operational
difficulties made the investor wary, and on Nov. 7, 2016, the
investor declined to invest in Karhoo, leaving Karhoo with no
alternative investor and insufficient funds with which to operate.
In the final week of Karhoo's operations, given Karhoo's high media
profile, a number of press articles appeared commenting on, and
speculating on the reasons for, its demise. The Administrators
intend to fulfill their statutory duties under the Company
Directors Disqualification Act 1986 by investigating the Debtors'
circumstances in the months leading up to the Debtors' entry into
administration and submitting reports to the Department for
Business, Energy, and Industrial Strategy of the UK Government.
UK Administration
In light of Karhoo's difficulties, on Nov. 7, 2016, the boards of
directors of the UK Debtors determined it was necessary to cease
operations and enter administration so as to maximize the value of
Karhoo's assets. On Nov. 9, 2016, as permitted by the Insolvency
Act, the board of directors appointed Paul Appleton and Paul Cooper
of David Rubin & Partners Ltd as administrators of both UK Debtors
(in such capacity, the "UK Debtor Administrators"). Later that
day, each of the UK Debtors filed a notice of appointment of an
administrator in the Chancery Division of the High Court of Justice
of England and Wales (the "English Court").
U.S. Cases
Paul Cooper, as administrator and foreign representative, on Dec.
20, 2016, filed Chapter 15 petitions for Karhoo Inc., Karhoo USA
Inc., Karhoo Limited and Karhoo Technologies LImited (Bankr.
S.D.N.Y. Lead Case No. 16-13545).
Mr. Cooper put the company into chapter 15 protection to halt
lawsuits in the U.S. and prevent the turnover of U.S.-based
operations.
The Debtors' principal place of business in the United States is in
New York, as are the US Debtors' principal assets in the United
States: Karhoo Inc. has a receivable under a lease termination
agreement with its landlord in Manhattan; the US Debtors are
parties to contracts governed by New York law and with forum
selection clauses specifying courts in Manhattan. Further, the US
Debtors are defendants in a lawsuit brought in New York.
In October 2015, Karhoo Inc. contracted with ModSquad Inc.
("ModSquad") to provide customer support services to Karhoo. On
October 28, 2016, ModSquad commenced a breach of contract lawsuit
against the Debtors in the United States District Court for the
Southern District of New York, alleging that it is owed over
$670,000 for services rendered through October 2016 and for the
remainder of the term of a certain work order under the parties'
contract.
A copy of the verified petition for an order recognizing the UK
proceeding as foreign main proceeding is available at:
http://bankrupt.com/misc/16-13545_Karhoo_3_Ch15_Memo.pdf
Counsel for Paul Cooper, as foreign representative in the U.S.
cases:
SIDLEY AUSTIN LLP
Michael G. Burke, Esq.
Brian J. Lohan, Esq.
Andrew P. Propps, Esq.
787 Seventh Avenue
New York, New York 10019
Telephone: (212) 839-5300
LANDS' END: S&P Affirms 'B-' CCR & Revises Outlook to Negative
--------------------------------------------------------------
S&P Global Ratings revised its outlook on Wisconsin-based apparel
retailer Lands' End Inc. to negative from stable. At the same
time, S&P affirmed all ratings, including the 'B-' corporate credit
rating.
"The outlook revision reflects Lands' End Inc.'s continued
significant underperformance of our expectations in recent
quarters, and our expectation for negative free operating cash flow
over the next 12 months. We believe ineffective merchandising,
disadvantageous retail store positioning (nearly all physical
locations are within the struggling retailer Sears), and
management's lack of ability to leverage the company's
infrastructure and expertise in the direct-to-consumer channel have
weakened the company's competitive position, and will remain as key
issues that weigh on company performance over the next 12 to 24
months," said credit analyst Andrew Bove. "In addition, we
believe the specialty apparel industry will remain difficult, given
the heightened industry competition (especially from fast fashion,
online, and off-pricing retailers), sustained highly promotional
environment in the U.S., and the continuing trend of customers
spending away from apparel and toward travel, health care,
restaurants, housing, and savings in light of slow wage growth."
The negative outlook reflects S&P's belief that recent missteps in
merchandise and departure from its traditional aesthetic appeal has
alienated many of its core customers, and S&P anticipates that it
will be a challenging and gradual process to regain these
customers. S&P also believes traffic trends and profitability will
remain challenged given the increasingly competitive specialty
apparel environment, and forecast negative free operating cash flow
generation over the next 12 months.
S&P could lower the ratings if the company is unable to stabilize
operating performance, leading to further meaningful weakening of
profitability metrics and significant deterioration of the
company's liquidity position. This could be the result of
additional merchandise missteps leading to further traffic
declines, along with increased competition from fast fashion,
off-price, and e-commerce retailers. Under this scenario, sales
trends would decline in the low-double digits in fiscal 2017
(compared to S&P's base-case forecast of a decline in the
mid-single digits) and gross margin would contract by about 200
bps, resulting in sustained meaningful negative free operating cash
flow.
S&P could revise the outlook back to stable if the company
demonstrates improved and consistent performance, with sales gains
in the low-single digits in fiscal 2017 (compared to S&P's forecast
of mid-single-digit decline), along with gross margin expansion of
about 100 basis points above S&P's expectation. This could happen
if management is able to execute a more focused and on-trend
merchandising strategy that resonates well with its core customer,
and can manage its inventory effectively to meet demand and limit
promotional activity. Under this scenario, debt to EBITDA would
improve to around 5.0x and free operating cash flow would be
consistently positive on a sustained basis.
MADISON CONSTRUCTION: Seeks Court Authorization to Use Cash
-----------------------------------------------------------
Madison Construction Group, Inc. seeks authorization from the U.S.
Bankruptcy Court for the Western District of North Carolina to use
cash collateral on an interim basis.
The Debtor proposes to use the cash collateral consistent with the
needs of its business. The Debtor's proposed December 2016 Budget,
provides for total pre-petition expenditure of approximately
$640,749 and post petition expenses of approximately $507,058.
The Debtor is a full service subcontractor that offers turnkey
packages for carpentry, millwork, doors, hardware, and specialty
installations. The Debtor's operations are based in Charlotte, but
its projects extend across North Carolina and into South Carolina
and Tennessee.
The Debtor tells the Court that its ability to perform under its
contracts and to generate additional accounts payable for the
benefit of the estate is dependent upon authority to access its
cash and receivables and apply the same for use at its project
sites.
The Debtor believes that it has two primary secured creditors
asserting to have an interest in its cash collateral:
(a) Aquesta Bank is owed in the original principal amount of
$313,620. Aquesta Bank asserts a perfected, security interest on
all business assets of the Debtor, including accounts receivable
and accounts of the Debtor.
(b) Yadkin Bank is owed in the original principal amount of
$250,000. Yadkin Bank asserts a perfected security interest in all
inventory, accounts, equipment and fixtures located at the Debtor's
primary business address.
The Debtor contends that it has not yet completed an analysis of
the extent, validity or priority of said security interests and
does not concede that either Aquesta or Yadkin has a security
interest that is, in fact, properly perfected and enforceable.
The Debtor asserts that neither the Aquesta Loan nor the Yadkin
Loan is currently in default. The Debtor further asserts that its
cash flow and other financial analysis show that Aquesta Bank or
Yadkin Bank's collateral position will be adequately maintained, or
improved, during the Debtor's use of cash collateral related to the
ongoing operations of the company.
The Debtor tells the Court that absent the interim use of cash
collateral, the Debtor would likely default under its service
agreements, thereby losing its stream of income and facing
potential liability, rather than reorganizing its affairs in order
to maximize value for the estate and its creditors. The Debtor
further tells the Court that without access to the cash collateral,
the Debtor will have no resources with which to pay operating
expenses currently due, triggering the filing of statutory liens
against its current accounts receivable.
A full-text copy of the Debtor's Motion, dated December 15, 2016,
is available at https://is.gd/qbL2TY
A full-text copy of the Debtor's Budget, dated December 15, 2016,
is available at https://is.gd/wEv4r9
Madison Construction Group is represented by:
Melanie D. Johnson Raubach, Esq.
HAMILTON STEPHENS STEELE MARTIN, PLLC
201 South College Street
Charlotte Plaza, Suite 2020
Charlotte, North Carolina 28244-2020
Telephone: (704) 344-1117
Email: mraubach@lawhssm.com
About Madison Construction Group
Madison Construction Group, Inc. filed a voluntary petition for
relief under chapter 11 of the Bankruptcy Code (Bankr. W.D.N.C.
Case No. 16-32006), on December 15, 2016. The Debtor is
represented by Melanie D. Johnson Raubach, Esq. at Hamilton
Stephens Steele Martin, PLLC of Charlotte, NC.
No trustee or examiner has been appointed in this chapter 11 case.
MEDPACE HOLDINGS: S&P Affirms Then Withdraws 'BB-' CCR
------------------------------------------------------
S&P Global Ratings affirmed its 'BB-' long-term corporate credit
rating on Cincinnati-based contract research organization (CRO)
Medpace Holdings Inc. The outlook is stable.
S&P subsequently withdrew the ratings at the company's request.
"The ratings reflected our view of Medpace's small scale, focused
strategy in a narrow subsector, and concentration in serving small
and midsized pharmaceutical companies," said S&P Global Ratings
credit analyst Matthew Todd. S&P also based the ratings on the
company's leverage and some remaining ownership concentration
between private equity sponsor Cinven and management as last
publicly reported.
The withdrawal follows the company's announced refinancing on
Dec. 8, 2016, and subsequent request to withdraw the ratings.
MERCHANTS BANKCARD: Can Get Financing, Use Cash on Interim Basis
----------------------------------------------------------------
Judge Joan N. Feeney of the U.S. Bankruptcy Court for the District
of Massachusetts authorized Merchant Bankcard Services of America,
Inc., to use obtain further post-petition financing and use cash
collateral, in her Seventh Stipulated Interim Order.
In her Sixth Stipulated Interim Order, Judge Feeney held that with
respect to the funds remitted or expected to be remitted to secured
creditor Davos Financial Corp. by Pivotal Payments, Inc. during the
week of Nov. 28, 2016, Davos will promptly remit the entirety of
the November Pivotal Payment to the Debtor, solely for the Debtor
to make payments through December 15, 2016, only.
Judge Feeney ordered that 40% of the November Pivotal Payment will
be treated as a secured post-petition loan from Davos to the
Debtor, that will be subject to the following terms and conditions,
among others:
(a) The interest rate will be the three month LIBOR rate plus
three percent per annum, and interest will accrue as of the last
day of each calendar months starting with December 2016.
(b) The maturity date will be the earliest of:
(i) the effective date of a plan of reorganization;
(ii) the closing on a sale of all of any or all interests
in the Three Portfolios;
(iii) the closing on a sale of all or substantially all of
the assets of the Debtor, and
(iv) March 31, 2017.
(c) The Second November DIP Loan will at all times be secured
by an automatically perfected first-priority lien on all property
and assets of the Debtor; and
(d) The Second November DIP Loan will at all times constitute
an allowed administrative expense claim in the Bankruptcy Case with
priority over all administrative expense claims and unsecured
claims against the Debtor of any kind or nature.
The Debtor was directed to actively pursue a Section 363 sale of
substantially all of its assets, including its interests in the
Three Portfolios, with a purchase and sale agreement to be executed
by Dec. 31, 2016. The Debtor agreed not to pursue a reorganization
as an alternative to a sale.
A full-text copy of the Order, dated Dec. 16, 2016, is available at
http://bankrupt.com/misc/MerchantsBankcard2016_1613224_92.pdf
A full-text copy of the Sixth Interim Order, dated Dec. 16, 2016,
is available at
http://bankrupt.com/misc/MerchantBankcard2016_1613224_91.pdf
About Merchant Bankcard Services of America
Merchants Bankcard Systems of America, Inc., filed a Chapter 11
petition (Bankr. D. Mass. Case No. 16-13224) on Aug. 18, 2016. The
petition was signed by Philip Chait, president. The Debtor is
represented by David B. Madoff, Esq., at Madoff & Khoury LLP. The
case is assigned to Judge Joan N. Feeney. At the time of filing,
the Debtor disclosed $2.58 million in assets and $4.20 million in
liabilities.
MIDDLE GEORGIA CENTER: Case Summary & 6 Unsecured Creditors
-----------------------------------------------------------
Debtor: Middle Georgia Center for Cosmetic Dentistry, P.C.
1295 Russell Parkway
Warner Robins, GA 31088
Case No.: 16-52588
Chapter 11 Petition Date: December 16, 2016
Court: United States Bankruptcy Court
Middle District of Georgia (Macon)
Debtor's Counsel: Wesley J. Boyer, Esq.
KATZ, FLATAU, & BOYER, LLP
355 Cotton Avenue
Macon, GA 31201
Tel: 478-742-6481
E-mail: wjboyer_2000@yahoo.com
wes@WesleyJBoyer.com
Estimated Assets: $100,000 to $500,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Curtis O. Hayslip, president.
A copy of the Debtor's list of six unsecured creditors is available
for free at http://bankrupt.com/misc/gamb16-52588.pdf
MODULAR SPACE: Case Summary & 30 Largest Unsecured Creditors
------------------------------------------------------------
Debtor affiliates filing separate Chapter 11 bankruptcy petitions:
Debtor Case No.
------ --------
Modular Space Holdings, Inc. 16-12825
1200 Swedesford Road
Berwyn, PA 19312
Modular Space Intermediate Holdings, Inc. 16-12826
Modular Space Corporation 16-12827
Resun Modspace, Inc. 16-12828
Modspace Governmental Financial Services, Inc. 16-12829
Modspace Financial Services Canada, Ltd. 16-12830
Resun Chippewa, LLC 16-12831
Type of Business: Provider of temporary and permanent
modular buildings, and is among the largest
suppliers in the U.S. and Canada of temporary
modular space and permanent modular
construction
Chapter 11 Petition Date: December 21, 2016
Court: United States Bankruptcy Court
District of Delaware (Delaware)
Debtors' Counsel: Pauline K. Morgan, Esq.
Joel A. Waite, Esq.
Ian J. Bambrick, Esq.
YOUNG CONAWAY STARGATT & TAYLOR, LLP
Rodney Square
1000 North King Street
Wilmington, DE 19801
Tel: 302 571-6600
Fax: 302-571-1253
E-mail: pmorgan@ycst.com
jwaite@ycst.com
ibambrick@ycst.com
- and -
James L. Bromley, Esq.
Jane VanLare, Esq.
CLEARY GOTTLIEB STEEN & HAMILTON LLP
One Liberty Plaza
New York, New York 10006
Tel: (212) 225-2000
Fax: (212) 225-3999
E-mail: jbromley@cgsh.com
jvanlare@cgsh.com
Debtors'
Financial
Advisor: LAZARD FRERES & CO. LLC
Debtors'
Restructuring
Advisor: ZOLFO COOPER LLC
Debtors'
Litigation
Counsel: BORDEN LADNER GERVAIS, LLP
Debtors'
Claims &
Noticing
Agent: KURTZMAN CARSON CONSULTANTS LLC
Estimated Assets: $1 billion to $10 billion
Estimated Debt: $1 billion to $10 billion
The petitions were signed by Charles Paquin, president and CEO.
Debtors' Consolidated List of 30 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
DINH Construction Corp. Trade $499,459
Ysmael Dizon
1565 W Persimmon St
Rialto, CA 92377
Tel: 909-816-4561
Fax: 909-429-4537
Email: sdo@dinhconstruction.com
ABC Supply Co. Inc. Trade $214,091
Cort Furniture Rental Trade $198,762
Email: modspacepos@cort.com
Home Transport Inc. Trade $176,895
Email: cheryl@hometransportinc.com
PTL Services ltd. Trade $173,934
Email: Lloyd.parrot@ptlservices.ca
McGrath Systems Trade $166,283
Email: bmcclintock@mcgrathsystems.com
Hufcor Florida Group Trade $161,786
Email: bhartman@hufcor.com
Allyn International Services Trade $155,262
Email: sales@allnintl.com
Wintech Trade $143,987
Email: cutter@wintechinc.com
United Site National Services Co Trade $138,943
Houston Modular Services Trade $136,265
Email: Al1pride@aol.com
Safe Haven Enterprises LLC Trade $136,187
Envista Concepts LLC Trade $135,194
Email: info@envistacorp.com
Kid Cody Modular Inc. Trade $132,740
Summit Fire Protection Inc. Trade $130,850
Email: ap@summitcous.com
Genpact International Trade $130,606
HB Renovations Improvements Trade $129,162
Email: bueno88hfc@hotmail.com
Allegiance Construction Inc. Trade $121,195
E-J Electric Installation Co. Trade $117,879
Email: bbergin@ej1899.com
Britco Structures USA Trade $115,232
Email: bmorgan@britcousa.com
Mike Devers Construction Trade $103,776
Email: mikedevers@comcast.net
Wesco Distribution Trade $97,153
Email: modspaceorders@westcodist.com
Quick Deck Trade $93,253
Pro Set Builders Trade $86,468
Mariotti Building PR Trade $86,175
Upside Innovations LLC Trade $83,599
Email: ksharp@upsideinnovations.com
Geary Pacific Corporation Trade $81,456
Email: modspaceorders@gearypacific.com
Siemens Industry Inc. Trade $79,500
Email: mary.johnson@siemens.com
Lamb's Mobile Home Service Trade $76,668
Email: lambsmhs@comcast.net
Johnson Transport LLC Trade $72,744
MODULAR SPACE: Files for Ch. 11 With Plan to Cut $400M in Debt
--------------------------------------------------------------
Modular Space Corporation announced that it has entered into a
comprehensive financial restructuring agreement with its lenders,
bondholders and equity sponsor. The Restructuring will eliminate
approximately $400 million of debt from the Company's balance
sheet, provide $90 million of new equity capital from the
bondholders via a rights offering and include a new $719 million
credit facility to be provided by the existing asset based lenders
(the "Lenders"). This transaction is supported by all of the
Lenders, approximately 78% of the holders of the Company's 10.25%
Senior Secured Second Lien Notes due 2019 ("Notes"), and the
primary equity holder.
"This is a positive action for ModSpace. Through this, we will
de-lever our balance sheet and provide an infusion of new capital
upon which to grow. Our employees, customers, and vendors can be
assured that it will be business as usual and we will honor all of
our commitments to them," said President and CEO Charles Paquin.
To implement the Restructuring, the Company and certain of its
affiliates have filed voluntary petitions for relief under Chapter
11 of the United States Bankruptcy Code in the District of Delaware
and, one affiliate has initiated a complementary, ancillary
proceeding in Canada under the Companies' Creditors Arrangement
Act, all to pursue a prepackaged plan of reorganization.
The Company has received debtor in possession financing commitments
from its existing Lenders that will fund the operations during the
Chapter 11 and CCA filings. The Company anticipates that the
restructuring will be concluded by the end of February.
Anticipated Treatment of Stakeholders
The Restructuring contemplates that key stakeholders will receive
the following treatment under the Plan:
-- All trade creditors will be paid in full and on time.
-- Employee wages and benefits will be paid in full in the
ordinary course without interruption.
-- Customer orders will be fulfilled consistent with past
practice without delay or disruption.
-- All holders of the Notes will receive, on a pro rata basis,
substantially all of the common stock in the reorganized Company in
exchange for existing claims for outstanding principal and accrued
interest. Existing equity holders will retain a small equity
interest in the reorganized Company. The equity interests received
by the holders of the Notes and existing equity holders will be
significantly diluted by, among other things, the equity interests
issued in connection with the Rights Offering.
"We greatly appreciate the support of our Lenders, bondholders and
shareholders throughout this process, and look forward to working
with them to achieve a revitalized balance sheet that provides the
perfect platform for growth and supports our ambition to extend
ModSpace's leadership role in the modular space industry," said Mr.
Paquin.
Mr. Paquin continued, "I want to give special thanks to all of our
employees. Over the last 12 months the Company has explored a
variety of financial, operational and strategic initiatives,
including a merger that was determined not to be in the best
interest of the company and its stakeholders. These activities
have placed an additional burden on the organization and I believe
that our team has done a great job managing through the
circumstances. We will now have a strong balance sheet that
complements our outstanding operation and industry leading market
position."
About ModSpace
Modular Space Corporation (ModSpace), based in Berwyn, Pa. --
http://Blog.ModSpace.com/-- is a U.S.-owned provider of office
trailers, portable storage units and modular buildings for
temporary or permanent space needs. Building on nearly 50 years of
experience, ModSpace serves a diverse set of customers and
markets—including commercial, construction, education,
government, healthcare, industrial, energy, disaster relief,
franchise and special events—through an extensive branch network
across the United States and Canada.
On Dec. 21 2016, Modular Space Holdings, Inc., and six affiliates
filed voluntary petitions for relief under Chapter 11 of the United
States Bankruptcy Code (Bankr. D. Del. Case No. 16-12825 to
16-12831) to pursue a prepackaged plan of reorganization. The
cases are pending joint administration under Case No. 16-12825
before the Honorable Kevin J. Carey in the United States Bankruptcy
Court for the District of Delaware.
ModSpace estimated $1 billion to $10 billion in assets and
liabilities.
Cleary Gottlieb Steen & Hamilton LLP is acting as legal counsel for
the Company; Lazard Middle Market LLC and Lazard Freres & Co. LLC
are acting as the Company's investment bankers and Zolfo Cooper is
the Company's financial advisor. Kurtzman Carson Consultants is
the claims and noticing agent and maintains a case Web site at
http://www.kccllc.net/modspace
Dechert LLP is acting as legal counsel and Moelis & Company LLC is
acting as financial advisor to the ad hoc group of noteholders.
MODULAR SPACE: Proposes Feb. 1 Hearing on Plan and Disclosures
--------------------------------------------------------------
Modular Space Holdings, Inc., et al., expect to conclude their
Chapter 11 cases in two months. The Debtors recently filed a
motion asking the Bankruptcy Court to schedule for Feb. 1, 2017, a
combined hearing to consider the adequacy of the Debtors'
disclosure statement and confirmation of the Debtors' prepackaged
chapter 11 plan.
The Debtors propose to seek confirmation of the Prepack Plan based
on this timeline:
* Dec. 13, 2016: Voting record date
* Dec. 20, 2016: Commencement of Solicitation
* Dec. 21, 2016: Petition Date
* Dec. 27, 2016: Mail Combined Hearing Notice
* Dec. 28, 2016: Publish Publication Notice
* Jan. 25, 2017: Voting Deadline
* Jan. 25, 2017: Deadline to object to Disclosure Statement and
confirmation of Plan
* Jan. 27, 2017: Deadline to File Voting Report
* Jan. 30, 2017 Deadline to File Memorandum and Declarations in
Support of Confirmation
* Feb. 1, 2017: Confirmation Hearing
* Feb. 22, 2017: Effective Date
On Dec. 21, 2016, the Debtors commenced solicitation regarding the
Plan, in accordance with the following Solicitation Procedures and
the Bankruptcy Code, on these parties (collectively, the "Voting
Parties"): (i) the holders (the "Noteholders") of the 10.25% senior
secured second lien notes due 2019 issued by ModSpace on February
25, 2014 (the "Notes") as of the Voting Record Date (as defined
below); (ii) the holders (the "Equityholders") of equity interests
in Holdings as of the Voting Record Date (the "Interests"); (iii)
the holders (the "First Lien Claims Holders") of Claims arising
under that certain Third Amended and Restated Credit Agreement
dated as of June 6, 2011 (as amended, modified, or supplemented
from time to time), by and among Modular Space Corporation, Resun
ModSpace, Inc., ModSpace Government Financial Services, Inc.,
ModSpace Financial Services Canada, Ltd., Resun Chippewa, LLC, and
Bank of America, N.A. in its capacity as the administrative agent
(the "ABL Agent"); and (iv) Calera Capital Advisors, LP ("Calera"),
as the holder (the "Management Agreement Claims Holder") of Claims
pursuant to that certain Amended and
Restated Management Services Agreement dated as of March 30, 2007,
by and among MSC, Calera and Holdings.
The Debtors' proposed Tabulation Procedures provide that in order
to be considered as acceptances or rejections of the Plans, all
Ballots must be properly completed, executed, marked and ACTUALLY
RECEIVED, via United States mail, first class mail or hand delivery
by KCC on or before Jan. 25, 2017 at 11:59 p.m. (Prevailing Eastern
Time) (the "Voting Deadline").
About ModSpace
Modular Space Corporation (ModSpace), based in Berwyn, Pa. --
http://Blog.ModSpace.com/-- is the largest U.S.-owned provider of
office trailers, portable storage units and modular buildings for
temporary or permanent space needs. Building on nearly 50 years of
experience, ModSpace serves a diverse set of customers and
markets—including commercial, construction, education,
government, healthcare, industrial, energy, disaster relief,
franchise and special events—through an extensive branch network
across the United States and Canada.
On Dec. 21 2016, Modular Space Holdings, Inc., and six affiliates
filed voluntary petitions for relief under Chapter 11 of the United
States Bankruptcy Code (Bankr. D. Del. Case No. 16-12825 to
16-12831) to pursue a prepackaged plan of reorganization. The
cases are pending joint administration under Case No. 16-12825
before the Honorable Kevin J. Carey in the United States Bankruptcy
Court for the District of Delaware.
ModSpace estimated $1 billion to $10 billion in assets and
liabilities.
Cleary Gottlieb Steen & Hamilton LLP is acting as legal counsel for
the Company; Lazard Middle Market LLC and Lazard Freres & Co. LLC
are acting as the Company's investment bankers and Zolfo Cooper is
the Company's financial advisor. Kurtzman Carson Consultants is
the claims and noticing agent and maintains a case Web site at
http://www.kccllc.net/modspace
Dechert LLP is acting as legal counsel and Moelis & Company LLC is
acting as financial advisor to the ad hoc group of noteholders.
MODULAR SPACE: Unsecured Creditors to Get 100% Under Prepack Plan
-----------------------------------------------------------------
Modular Space Corporation filed a Prepackaged Plan of
Reorganization that will eliminate approximately $400 million of
debt from the Company's balance sheet, provide $90 million of new
equity capital from the bondholders via a rights offering and
include a new $719 million credit facility to be provided by the
existing asset based lenders (the "Lenders").
General unsecured claims, to the extent not paid earlier by order
of the Court, would either be paid in full in cash or reinstated on
the Effective Date. However, under certain conditions, the Plan
affords the noteholders the right to direct the Debtors (subject to
certain consent rights) to pursue an "alternative transaction."
As of the Petition Date, ModSpace had approximately $984.2 million
of outstanding long term debt and $37.7 of accrued interest
consisting of:
(i) approximately $609.2 million of outstanding debt under an
asset-based revolving credit facility, including $3.2 million of
funded letters of credit, plus accrued interest of approximately
$2.3 million as of the Petition Date; and
(ii) approximately $375 million of 10.25% Senior Secured Second
Lien Notes due 2019, plus outstanding and accrued interest of
approximately $35.4 million as of the Petition Date.
On Dec. 20, 2016, the Debtors, the ABL Lenders, the Ad Hoc Group of
Noteholders and Calera reached an agreement on a recapitalization
of ModSpace, memorialized in a restructuring support agreement (the
"RSA" or "Restructuring Support Agreement") in support of a
prepackaged chapter 11 plan of reorganization (as may be amended or
modified, the "Plan"). The RSA will terminate in the event of,
among other things:
* the failure of the Interim DIP Order to be entered within five
Business Days after the Petition Date, or to become a Final Order
within 15 days after entry thereof;
* the failure of the Final DIP Order to be entered within 35
days after the Petition Date, or to become a Final Order within 15
days after entry thereof;
* the failure of the Confirmation Order to be entered within 60
days after the Petition Date, or to become a Final Order within 15
days after entry thereof;
* the failure of the Effective Date to occur on or prior to 60
days after the Bankruptcy Court's entry of the Confirmation Order.
Following execution of the RSA, the Debtors commenced a prepetition
solicitation of the Plan to the ABL Lenders, the Noteholders,
Calera Capital Advisors L.P., as holders of the
Management Agreement Claims, and the Debtors' equityholders (the
"Equityholders") -- the only classes of claims or interests
entitled to vote will pursue a consensual chapter 11 reorganization
pursuant to the terms of the Plan.
The Debtors also intend to seek recognition in Canada of MFSC's
Chapter 11 Case.
The RSA and the Plan contemplate a prompt emergence from bankruptcy
with the following key terms:
* the ABL Lenders will provide the Debtors with post-petition
financing to fund their operations during the pendency of the
Chapter 11 Cases;
* administrative expense claims and prepetition priority claims
will be paid in full in cash upon emergence;
* claims arising under the Debtors' prepetition Indenture will
receive:
-- their pro rata share of 9,122,999 shares of equity of a
reorganized entity, to be determined in accordance with the Plan,
which will own, directly or indirectly, 100% of the equity
interests in Modular Space Corporation as of the Effective Date
(the "Reorganized Entity") and the right to participate in an
offering of $90 million of equity in the Reorganized Entity (the
"Rights Offering") pursuant to which they may subscribe to purchase
their pro rata share of an additional 18,317,500 shares of equity
in the Reorganized Entity; and
-- In exchange for their agreement to backstop the Rights
Offering, on the terms and conditions set forth in the Backstop
Commitment Agreement, certain members of the Ad Hoc Group of
Noteholders will receive a backstop fee in an aggregate amount
equal to 5% of the equity offered in the Rights Offering, or
915,875 shares of equity in the Reorganized Entity.
* Existing equity interests in Holdings will receive:
* their pro rata share of 877,001 shares of equity in the
Reorganized Entity; and
* their pro rata share of two tranches of warrants, which may be
exercised in exchange for an aggregate of 1,250,000 shares of
equity in the Reorganized Entity.
* In the event of an Alternative Transaction (defined below),
the holder of the Management Agreement Claims against Modular Space
Corporation will be entitled to receive a distribution in the event
of a Qualifying Liquidity Event (as defined in the Plan).
* The issuance of equity in the Reorganized Entity to holders of
Notes and existing equity interests in Holdings will be subject to
dilution by equity compensation issued in connection with a
management incentive program (a "MIP"), equity issued to the former
independent directors pursuant to the Plan, or other issuance of
additional new equity securities on or after the effective date;
* The ABL Credit Agreement will be amended, restated, modified
and assumed by the reorganized Debtors pursuant to the Exit Credit
Facility; and
* Subject to an Alternative Transaction, each holder of all
other allowed claims will receive treatment that renders such
allowed claims unimpaired (either through reinstatement or
satisfaction of such claim).
On or about the Petition Date the Debtors will file a motion
seeking to set bar dates for general unsecured claims and claims of
governmental units (subject to certain exclusions) against Holdings
and Intermediate only. The proposed order excludes general
unsecured claims held by (i) any ABL Lender or ABL Agent with
respect to claims arising under or in connection with the ABL
Credit Facility (ii) any Noteholder or Trustee with respect to
claims arising under or in connection with the Indenture, other
Senior Secured Note Documents (as defined in the Indenture) or the
Intercreditor Agreement; (iii) any entity holding a claim against
Holdings in respect of that certain Agreement of Indemnity dated as
of February 12, 2012 by and among the parties thereto; (iv) any
entity holding a claim against Holdings in respect of that certain
Amended and Restated Management Services Agreement dated as of
March 30, 2007 by and among the parties thereto; (v) any entity
holding claims under the Restructuring Support Agreement,
including, without limitation, claims for payment or reimbursement
of processional fees and expenses reimbursable under the
Restructuring Support Agreement and the Plan; (vi) any director or
officer of Holdings or Intermediate solely with respect to (a)
claims arising under or in connection with any existing director
and officer liability insurance or agreement or (b) claims for
advancement, indemnification and/or contribution arising as a
result of such director's or officer's services to Holdings or
Intermediate; and (vii) any Debtor holding a claim against Holdings
or Intermediate.
If any Holdings Claims (as defined in the Disclosure Statement) are
filed against Holdings and/or Intermediate prior to the Bar Date,
and such claims (i) have not been expunged, disallowed,
extinguished, withdrawn or otherwise disposed of either by order of
the Court or otherwise (including without limitation the potential
satisfaction of the Holdings Claims by the Consenting Interest
Holders in their sole discretion) and (ii) the Majority Noteholders
have not agreed that such Holdings Claims are facially without
merit as against Holdings or Intermediate (which agreement shall
not be unreasonably withheld or delayed), the Noteholders reserve
the right to direct the Debtors to withdraw the Plan for Holdings
and modify the Plan for Intermediate to provide no recoveries for
the General Unsecured Claims (the "Alternative Transaction"). The
Alternative Transaction would have no impact on the recoveries of
creditors at any Debtors other than Holdings and Intermediate, with
the exception of the Management Agreement Claims which would not be
entitled to a distribution in the event of a Qualifying Liquidity
Event as described in the Plan.
In the event of an Alternative Transaction, in lieu of other
treatment provided for in the Plan for Existing Holdings Equity
Interests and the Management Agreement Claims, the holders of such
interests and claims will have an opportunity to participate in the
Noteholder Plan Settlement as outlined in the Plan, pursuant to
which they could receive their pro rata share of 877,001 shares of
equity in the Reorganized Entity in exchange for their Management
Agreement Claims and granting contractual releases to the Released
Parties.
Irrespective of the ultimate structure of the Reorganized Debtors,
the U.S. Borrowers (and, as applicable, the U.S. Guarantors) and
the Canadian Borrower (and, as applicable, the Canadian Guarantors)
seek to amend and restate the ABL Credit Agreement by and among the
U.S. Borrowers, the U.S. Guarantors, the Canadian Borrower, the
Canadian Guarantors, and the banks serving as lenders (the "Exit
Lenders") pursuant to such agreement (as amended and restated, the
"Exit Credit Facility" or "Fourth Amended and Restated Credit
Agreement"). The Fourth Amended and Restated Credit Agreement will
provide exit financing to support the plan contemplated by the
Restructuring Support Agreement and the ongoing working capital
requirements of the reorganized Debtors in the approximate amount
of $719.5 million in revolving credit commitment and term loans:
* up to approximately $496 million in senior secured domestic
revolving facility for the U.S. Borrowers (including a $40,000,000
sub-limit for letters of credit and a $40,000,00 sub-limit for
swingline loans);
* up to approximately $149 million (including a $20,000,000
sub-limit for letters of credit and a $15,000,000 sub-limit for
swingline loans) in senior secured Canadian revolving facility for
the Canadian Borrower;
* a term loan consisting of converted pre-petition obligations
owed to KKR Financial CLO 2005-1, Ltd., KKR Financial CLO 2005-2,
Ltd. and KKR Financial CLO 2006-1, Ltd. (collectively, "KKR"),
which shall not exceed approximately $27 million minus an amount
equal to the product of $60,000,000 multiplied by a percentage, (x)
the numerator of which is the balance of the portion of all debts,
liabilities and obligations of the U.S. Borrowers, the U.S.
Guarantors, the Canadian Borrower and the Canadian Guarantor under
the ABL Credit Agreement (the "Existing Obligations") owed to KKR
at any time (the "KKR Existing Obligations") immediately prior to
the closing of the revolving credit facilities (the "Facilities")
and (y) the denominator of which is the sum of $603 million plus
the balance of the KKR Existing Obligations on the Effective Date
of a pre-packaged or pre-arranged plan of reorganization in
accordance with the Restructuring Support Agreement, which is to be
applied to the KKR Existing Obligations immediately prior to the
closing of the Facilities; and
* a term loan consisting of converted pre-petition existing
obligations owed to prepetition domestic lenders other than KKR,
which shall not exceed approximately $106 million minus an amount
equal to the product of $60,000,000 multiplied by a percentage, (x)
the numerator of which is $603 million and (y) the denominator of
which is the sum of $603 million plus the balance of the KKR
Existing Obligations immediately prior to the closing of the
Facilities, which is to be applied to the Existing Obligations owed
to pre-petition domestic lenders other than KKR immediately prior
to the closing of the Facilities of approximately $57 million.
The senior secured domestic facilities will be secured by duly
perfected, first priority liens in favor of the ABL Agent (for the
benefit of the Exit Lenders) upon all assets of each U.S. Borrower
and each U.S. Guarantor, whether real or personal, tangible or
intangible, now existing or hereafter created, acquired or arising,
and wherever located and 65% of the equity interests of any foreign
subsidiaries, including without limitation, the Canadian Borrower.
The senior secured Canadian facility will be secured by duly
perfected, first priority liens in favor of the ABL Agent (for the
benefit of the Canadian Exit Lenders) upon all assets of each
Borrower and Guarantor (including the U.S. Borrowers and U.S.
Guarantors), whether real or personal, tangible or intangible, now
existing or hereafter created, acquired or arising, and wherever
located.
The effectiveness of the Fourth Amended and Restated Credit
Agreement and the obligation of the Exit Lenders to fund thereunder
are conditioned upon, among other things, the consummation of the
Plan and Rights Offering.
The Plan will significantly delever the Debtors' balance sheet and
allow the Debtors to continue the successful operation of their
businesses. Because the Plan provides more value to creditors than
would have been possible under a liquidation of the Debtors'
businesses, the Debtors anticipate confirming the Plan within a
short timeframe. The Debtors believe that the swift emergence
contemplated under the Plan will enhance the Debtors' ability to
continue to focus on providing services to its clients.
About ModSpace
Modular Space Corporation (ModSpace), based in Berwyn, Pa. --
http://Blog.ModSpace.com/-- is the largest U.S.-owned provider of
office trailers, portable storage units and modular buildings for
temporary or permanent space needs. Building on nearly 50 years of
experience, ModSpace serves a diverse set of customers and
markets—including commercial, construction, education,
government, healthcare, industrial, energy, disaster relief,
franchise and special events—through an extensive branch network
across the United States and Canada.
On Dec. 21 2016, Modular Space Holdings, Inc., and six affiliates
filed voluntary petitions for relief under Chapter 11 of the United
States Bankruptcy Code (Bankr. D. Del. Case No. 16-12825 to
16-12831) to pursue a prepackaged plan of reorganization. The
cases are pending joint administration under Case No. 16-12825
before the Honorable Kevin J. Carey in the United States Bankruptcy
Court for the District of Delaware.
ModSpace estimated $1 billion to $10 billion in assets and
liabilities.
Cleary Gottlieb Steen & Hamilton LLP is acting as legal counsel for
the Company; Lazard Middle Market LLC and Lazard Freres & Co. LLC
are acting as the Company's investment bankers and Zolfo Cooper is
the Company's financial advisor. Kurtzman Carson Consultants is
the claims and noticing agent and maintains a case Web site at
http://www.kccllc.net/modspace
Dechert LLP is acting as legal counsel and Moelis & Company LLC is
acting as financial advisor to the ad hoc group of noteholders.
OMNI LOOKOUT: Court Allows Use of LB-UBS Cash Collateral
--------------------------------------------------------
Judge Tony M. Davis of the U.S. Bankruptcy Court for the Western
District of Texas authorized Omni Lookout Ridge, LP to use the cash
collateral of LB-UBS 2007-C2 Lookout Ridge Boulevard, LLC.
The approved 5-month Budget provides for total expenses in an
aggregate amount of $203,444, which covers the period from Petition
Date through January 1, 2017.
The LB-UBS asserted that it is the holder of security interests,
liens and mortgages in all or substantially all of the Debtor's
property, including, but not limited to, the Debtor's:
(a) real property and improvements thereon;
(b) accounts, escrow funds, deposits and reserves that relate
to the property of the Debtor;
(c) machinery, equipment, fittings, furniture, furnishings,
and fixtures; and
(d) contracts, leases, documents and agreements to which the
Debtor is a party.
LB-UBS was granted replacement liens on all post-petition proceeds
and cash generated by the Debtor and the right to copy and inspect
the Debtor's books and records.
A full-text copy of the Order, dated December 15, 2016, is
available at https://is.gd/2igVRt
LB-UBS 2007-C2 Lookout Ridge Boulevard, LLC is represented by:
Charles R. Gibbs, Esq.
Robert J. Shannon, Esq.
AKIN GUMP STRAUSS HAUER & FELD LLP
1700 Pacific avenue, Suite 4100
Dallas, Texas 75201
Telephone: 214.969.2800
Facsimile: 214.696.4343
About Omni Lookout Ridge, LP
Omni Lookout Ridge, LP aka Omni G.P., LLC, General Partner filed a
Chapter 11 petition (Bankr. W.D. Tex. Case No. 16-11048) on
September 6, 2016. The petition was signed by Gregory Hall,
manager. The Debtor is represented by Frank B. Lyon, Esq. At the
time of filing, the Debtor estimated assets at $0 to $50,000 and
liabilities at $1 million to $10 million.
OPEN TEXT: S&P Raises Rating on Unsecured Debt to 'BB+'
-------------------------------------------------------
S&P Global Ratings said it raised its issue-level rating on Open
Text Corp.'s unsecured debt (which includes a proposed US$250
million add-on) to 'BB+' from 'BB', as the company has completed
the financing for the proposed US$1.62 billion acquisition of Dell
EMC's content division. At the same time, S&P Global Ratings
revised its recovery rating on the debt to '4' from '5'. A '4'
recovery rating indicates S&P's expectation for average (30%-50%;
at the lower end of the range) recovery in the event of default.
S&P Global Ratings also affirmed its 'BB+' long-term corporate
credit rating on Open Text, as well as its 'BBB-' issue-level
rating, with a '1' recovery rating, on the company's secured debt.
The outlook is stable.
"The upgrade and revised recovery rating on the unsecured debt
result primarily from the company's decision to bypass a large
proposed US$1 billion secured term loan, funding the acquisition
with revolver borrowings, unsecured debt, and equity," said S&P
Global Ratings credit analyst Donald Marleau.
Moreover, Open Text has added significant value from recent
acquisitions relative to its secured debt, boosting S&P's
expectations for unsecured recovery in the event of default.
The stable outlook reflects S&P Global Ratings' expectation that
Open Text's leverage will rise to almost 3.0x to complete the EMC
content acquisition, improving to 2.5x-3.0x in 12-18 months as it
reduces debt and integrates a series of acquisitions, notably Dell
EMC. S&P expects that the company's acquisitive strategy will
boost revenues significantly amid modest organic revenue growth,
which S&P believes also increases earnings risk as it integrates
new products and transitions customers.
S&P could lower the ratings on Open Text if debt-financed
acquisitions keep adjusted debt-to-EBITDA above 3x, or if earnings
weaken because of the interplay of difficulties integrating an
ambitious series of acquisitions, as well as customer attrition and
market share losses amid product repositioning.
S&P could raise the ratings on Open Text if the company continues
to expand into the broader EIM market while developing an
integrated set of product suites that resonates with customers,
materially improving the company's market position and scale. S&P
would also expect Open Text to achieve a sustained mid-single-digit
organic growth rate while maintaining adjusted debt-to-EBITDA below
3x.
OPTIMA SPECIALTY: Needs Interim Authority To Access Cash Collateral
-------------------------------------------------------------------
Optima Specialty Steel, Inc. and its affiliated Debtors ask the
U.S. Bankruptcy Court for the District of Delaware for
authorization to use cash collateral.
The Debtors tell the Court that they need to use cash collateral to
operate their business in the ordinary course during the initial
weeks of their Cases while they negotiate the terms of
post-petition debtor-in-possession financing. The Debtors further
tell the Court that they anticipate a need for debtor-in-possession
financing in January 2017, and that absent approval for the use of
cash collateral, the Debtors would have insufficient liquidity to
continue to operate their businesses and pay costs associated with
their Cases.
As of the Petition Date, the Debtors had outstanding debt
obligations in the aggregate amount of over $259 million, including
accrued and unpaid interest, consisting primarily of their
obligations under the Secured Notes and the Unsecured Notes.
The Debtors relate that in connection with its acquisition of
Niagara LaSalle Corporation, Optima Specialty Steel issued $175
million aggregate principal amount of 12.5% senior secured notes to
various holders that may trade from time to time. In connection
with the issuance of the Secured Notes, the Debtors and Wilmington
Trust, National Association as trustee and noteholder collateral
agent, entered into an indenture.
The Debtors tell the Court that the Secured Notes are fully
guaranteed, on a senior secured basis, by each of the Operating
Subsidiaries, and secured by substantially all of the Debtors'
assets. The approximate amount currently outstanding under the
Secured Notes is $171 million, which includes interest in the
approximate amount of $10 million through the Petition Date.
The Debtors also relate that in connection with the acquisition of
Corey Steel Company, Optima Specialty Steel issued $85 million of
senior unsecured notes at 100% of face value, bearing interest at
12.0% per annum. In connection with the issuance of the Unsecured
Notes, the Debtors and Wilmington Trust, National Association as
trustee, entered into an indenture.
In addition to providing the financing for the Corey Steel
acquisition, proceeds from the Unsecured Notes were used to redeem
the $35 million principal amount of unsecured notes issued in 2013
in connection with the acquisition of KES Acquisition Company. The
Unsecured Notes are currently held solely by DDJ Capital
Management, LLC, and the approximate amount currently outstanding
under the Unsecured Notes is $87.5 million, which includes interest
in the approximate amount of $2.5 million as of the Petition Date.
As adequate protection of their interests in the Prepetition
Collateral for and equal in amount to the aggregate postpetition
diminution in value of such interests, the Debtors propose to grant
Wilmington Trust, for the benefit of itself and the Secured
Noteholders:
(a) an additional and replacement valid, binding, enforceable
non-avoidable, and automatically perfected postpetition security
interests in and liens, on all property, of each Debtor and each
Debtors' estate of any kind or nature whatsoever, real or personal
tangible or intangible, and now existing or hereafter acquired or
created;
(b) an allowed administrative expense claim in the Debtors'
Cases ahead of and senior to any and all other administrative
expense claims in such Cases to the extent of any postpetition
Diminution in Value;
(c) payment of reasonable and documented fees and expenses,
whether incurred before or after the Petition Date, of Wilmington
Trust and the ad hoc group of unaffiliated holders of a majority in
amount of the Secured Notes, including, without limitation, the
fees and expenses of (i) one counsel for the Wilmington Trust and
(ii) one local counsel, one lead counsel and one financial advisor
for the Secured Noteholder Group; and
(d) the Secured Obligations will continue to accrue interest
at the default contract rate set forth in the Secured Notes
Documents.
The proposed adequate protections are subject only to the
Carve-Out, which includes:
(a) all fees required to be paid to the Clerk of the Court
and to the Office of the U.S. Trustee;
(b) fees and expenses up to $50,000 incurred by a trustee
under Bankruptcy Code;
(c) all accrued Professional Fees incurred by persons or
firms retained by the Debtors pursuant to sections 327, 328, or 363
of the Bankruptcy Code and any official committee appointed in
these Cases; and
(d) post-termination professional fees amount in an aggregate
amount not to exceed (i) $250,000 with respect to the Debtor
Professionals, and $50,000 with respect to the Committee
Professionals.
A full-text copy of the Debtor's Motion, dated December 15, 2016,
is available at https://is.gd/xSePFy
About Optima Specialty Steel
Optima Specialty Steel, Inc. and its affiliates are leading
independent manufacturers of specialty steel products. All of the
Debtors' manufacturing facilities are located in the United States,
and each of the Debtors' operating units have operated in the steel
industry for more than 50 years. The Debtors collectively employ
more than 900 people.
Optima Specialty Steel, Inc. and its affiliates filed separate
Chapter 11 bankruptcy petitions on December 15, 2016: Optima
Specialty Steel, Inc. (Bankr. D. Del. 16-12789); Niagara LaSalle
Corporation (Bankr. D. Del. 16-12790); The Corey Steel Company
(Bankr. D. Del. 16-12791); KES Acquisition Company (Bankr. D. Del.
16-12792); and Michigan Seamless Tube LLC (Bankr. D. Del.
16-12793). The petitions were signed by Mordechai Korf, chief
executive officer. At the time of filing, the Debtor had assets
and liabilities estimated at $100 million to $500 million each.
The Debtor is represented by Dennis A. Meloro, Esq., Greenberg
Traurig, LLP, Wilmington, DE. The Debtors' retain Ernst & Young
LLP as their Accountant.
No request has been made for the appointment of a trustee or
examiner and the U.S. Trustee has not yet appointed an official
committee of unsecured creditors.
PBF LOGISTICS: S&P Affirms 'B+' Rating on Senior Unsecured Notes
----------------------------------------------------------------
S&P Global Ratings said that it has reviewed its recovery and
issue-level ratings on PBF Logistics L.P. and PBF Logistics Finance
Corp. that were labeled as "under criteria observation" (UCO) after
publishing its revised recovery ratings criteria on Dec. 7, 2016.
With S&P's criteria review complete, it is removing the UCO
designation from these ratings.
"We are affirming our 'B+' issue-level rating on the partnership's
senior unsecured notes and revising our recovery rating on these
notes to '3' from '4', indicating our expectation for meaningful
(50%-70%, in the lower half of the range) recovery in the event of
default. We also are affirming our 'BB' senior secured issue-level
rating and '1' recovery rating on the partnership's
$360 million revolving credit facility, indicating our expectation
for very high (90%-100%) recovery," S&P said.
These rating actions stem solely from the application of S&P's
revised recovery criteria and do not reflect any change in its
assessment of the corporate credit ratings for issuers of the
affected debt issues. S&P's corporate credit rating on PBF
Logistics is 'B+', and the outlook is stable.
Ratings List
PBF Logistics L.P.
Corporate Credit Rating B+/Stable
Rating Affirmed; Recovery Rating Revised
To From
PBF Logistics L.P.
PBF Logistics Finance Corp.
Senior unsecured B+ B+
Recovery Rating 3L 4L
Rating Affirmed; Recovery Rating Unchanged
PBF Logistics L.P.
PBF Logistics Finance Corp.
Senior secured BB
Recovery Rating 1
PET CAFE: Needs Interim Authorization To Utilize Cash Collateral
----------------------------------------------------------------
Pet Cafe, Inc. d/b/a Caffe Martier requests authorization from the
U.S. Bankruptcy Court for the Southern District of Florida to use
cash collateral on an interim basis.
The cash collateral consists of cash on hand and funds to be
received from food and beverage sales during its normal operations.
The Debtor's proposed 6-month Budget provides approximately
$1,041,121 of total expenses through May 2017.
The Debtor's proposed Budget projects the following: (a) total
receipts in the amount of approximately $260,000 representing Cash
Collateral for the month of December, and $280,800.00 for the month
of January; and (b) total disbursements in the amount of
approximately $244,956 for the month of December and $257,370 for
the month of January. Based on the Budget, the Debtor anticipates
that it will operate on a positive cash flow basis.
The Debtor tells the Court that Business Financial Services, Inc.
d/b/a BFS Capital and/or BofI Federal Bank and/or CHTD Company may
assert a first priority security interest in the Debtor's assets,
including cash and credit card receivables generated by its
restaurant operations, by virtue of a blanket lien on the Debtor's
personal property. As of the Petition Date, the Debtor owes BFS
Capital and/or BofI Federal Bank and/or CHTD Company approximately
$200,000.
The Debtor relates that it has entered into a Factoring Agreement
with BFS Capital which provides, among other things, for the
purchase by BFS Capital of Debtor's credit card receivables for a
20% commission, however, it did not provide the Debtor with a
sufficient line of credit. The Debtor further relates that it has
also entered into a new factoring agreement with BFS Capital and/or
BofI Federal Bank that replaced the original factoring agreement
providing for an advance of $243,100, which Debtor would repay
$316,030 over a one year period, and authorizing BFS Capital to
receive 15% of the Debtor's daily credit card receipts, for a
monthly payment of approximately $26,335. A secured promissory
note with BofI Federal Bank as payee was incorporated into the
Second Factoring Agreement which is secured with all of the assets
of the Debtor.
Although the Debtor believes that BFS Capital and/or BofI Federal
Bank and/or CHTD Company' interest in cash collateral is adequately
protected, the Debtor proposes to grant BFS Capital and/or BofI
Federal Bank and/or CHTD Company with replacement lien in the
Debtor's post-petition assets, and proceeds of same, to the same
extent, priority and validity as its pre-petition liens, to the
extent Debtor's use of Cash Collateral results in a decrease in the
value of BFS Capital and/or BofI Federal Bank and/or CHTD Company's
interest in the cash collateral.
The Debtor contends that if it is not permitted to use cash
collateral, it will be forced to halt operations, creating an
adverse effect on creditors and employees, and will likely
eliminate the total value of assets pledged as collateral.
A full-text copy of the Debtor's Motion, dated December 15, 2016,
is available at https://is.gd/bWOCrV
About Pet Cafe, Inc.
Pet Cafe, Inc. was formed on July 14, 2008. The Debtor owns and
operates Caffe Martier, an upscale casual restaurant that serves
Mediterranean fusion food. The cafe opened in its present form in
the spring of 2014 and is located at 411 East Atlantic Avenue,
Delray Beach Florida 33483.
Pet Cafe, Inc. d/b/a Caffe Martier filed a Chapter 11 petition
(Bankr. S.D. Fla. Case No. 16-26067), on December 1, 2016. The
Petition was signed by its Chief Operating Officer, Eli R.
Kamholtz. The Debtor is represented by Chad Van Horn, Esq. at Van
Horn Law Group, P.A. At the time of filing, the Debtor estimated
assets at $0 to $50,000 and $500,000 to $1 million in liabilities.
No creditors' committee has been appointed in this case, and no
trustee or examiner has been appointed.
PETROLEX MANAGEMENT: Can Use Cash Until March 2 Hearing
-------------------------------------------------------
Judge Christopher J. Panos of the U.S. Bankruptcy Court for the
District of Massachusetts authorized Petrolex Management, LLC to
continue using cash collateral through the further hearing
scheduled on March 2, 2017 at 11:30 a.m.
As previously reported in the Troubled Company Reporter, the Court
previously authorized the Debtor to use cash collateral on an
interim basis for operating and reorganization expenses. The
Debtor was directed to pay monthly adequate protection payments to
Petroleum and Franchise Capital, LLC as servicer for Petroleum and
Franchise Holding, LLC, in the amount of $14,690.
The Court then extended the Debtor's use of cash collateral and
directed the Debtor to continue making monthly adequate protection
payments to Petroleum and Franchise Capital in the amount of
$14,690. The Court also directed the Debtor to make monthly
interest payments to Home Loan Investment Bank in the amount of
$4,573.
The Debtor told the Court that it had been making timely adequate
protection payments to Petroleum and Franchise Capital and monthly
interest payments to Home Loan Investment Bank. The Debtor further
told the Court that it wanted the permanent use of its cash
collateral for operating and reorganization expenses as they become
due, consisted with the Debtor's proposed Budget which includes the
continued adequate protection payments to Petroleum and Franchise
Capital and the monthly interest payments to Home Loan Investment
Bank.
The Debtor's proposed monthly Budget provided for a net income of
$19,000, which is available for the monthly adequate protection
payments to Petroleum and Franchise Capital in the amount of
$14,690 and the monthly interest payments to Home Loan Investment
Bank in the amount of $4,573.
The Court had previously granted the Secured Creditors replacement
liens and the Debtor, Petroleum and Franchise Capital, and Home
Loan Investment Bank have agreed to the continuation of all terms
contained in the Court's Order.
A full-text copy of the Order, dated Dec. 16, 2016, is available at
http://bankrupt.com/misc/PetrolexManagement2016_1641322_87.pdf
About Petrolex Management, LLC
Petrolex Management, LLC, filed a chapter 11 petition (Bankr. D.
Mass. Case No. 16-41322) on July 27, 2016. The petition was signed
by Samer Biloune and Imad Massabni, managers. The Debtor is
represented by Gary M. Hogan, Esq., at Baker, Braverman &
Barbadoro, P.C. The case is assigned to Judge Christopher J.
Panos. The Debtor estimated assets and liabilities at $1 million
and $10 million at the time of the filing.
PIONEER BREAKER: Court Allows Cash Use on Interim Basis
-------------------------------------------------------
Judge Tony M. Davis of the U.S. Bankruptcy Court for the Western
District of Texas authorized Pioneer Breaker & Control Supply, Co.,
to use cash collateral on an interim basis.
Judge Davis acknowledged that the use of cash collateral, pending a
final hearing on the Debtor's Cash Collateral Motion, is necessary
to avoid immediate and irreparable harm to the estate.
The approved Budget provided for total expenses in the amount of
$75,857 for the period Dec. 15, 2016 through Dec. 28, 2016.
J.P. Morgan Chase Bank, N.A., and Paypal are directed to pay the
Debtor all funds that were withheld from the Debtor by them since
Aug. 1, 2016, including funds withheld based on offset, or upon
levy, hold or legal notice/action on behalf of NuLook Capital LLC
and/or New Era Lending LLC.
J.P. Morgan is granted first priority, perfected, postpetition
replacement liens and security interests to the same extent and
priority as its prepetition liens, but excluding avoidance
actions.
A final hearing on the Debtor's Motion is scheduled on Dec. 28,
2016 at 1:30 p.m.
A full-text copy of the Order, dated Dec. 16, 2016, is available at
http://bankrupt.com/misc/PioneerBreaker2016_11095tmd_34.pdf
About Pioneer Breaker & Control Supply, Co.
Pioneer Breaker & Control Supply, Co. filed a Chapter 11 petition
(Bankr. W.D. Tex. Case No. 16-11095), on Sept. 21, 2016. The
Petition was signed by Elod Tamas Toldy, president. The case is
assigned to Judge Tony M. Davis. The Debtor is represented by
William T. Peckham, Esq., at the Law Office of William T. Peckham.
At the time of filing, the Debtor disclosed $501,000 in total
assets and $1.58 million in total liabilities.
PRECISE CORPORATE: Case Summary & 8 Unsecured Creditors
-------------------------------------------------------
Debtor: Precise Corporate Staging LLC
1530 West 10th Place
Tempe, AZ 85281
Case No.: 16-14281
Chapter 11 Petition Date: December 20, 2016
Court: United States Bankruptcy Court
District of Arizona (Phoenix)
Judge: Hon. Paul Sala
Debtor's Counsel: John C. Smith, Esq.
GERALD & SMITH LAW OFFICES, PLLC
6720 E Camino Principal, Ste. 203
Tucson, AZ 85715
Tel: 520-722-1605
Fax: 520-722-9096
E-mail: john@smithandsmithpllc.com
Estimated Assets: $50,000 to $100,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Marla Stern, managing member.
A copy of the Debtor's list of eight unsecured creditors is
available for free at:
http://bankrupt.com/misc/azb16-14281.pdf
RACEWAY MARKET: Case Summary & 2 Unsecured Creditors
----------------------------------------------------
Debtor: Raceway Market Land, LLC
9333 N. Meridian St., Suite 275
Indianapolis, IN 46260
Case No.: 16-09541
Nature of Business: Single Asset Real Estate
Chapter 11 Petition Date: December 20, 2016
Court: United States Bankruptcy Court
Southern District of Indiana (Indianapolis)
Judge: Hon. Robyn L. Moberly
Debtor's Counsel: Andrew T. Kight, Esq.
TAFT STETTINIUS & HOLLISTER LLP
One Indiana Square, Suite 3500
Indianapolis, IN 46204
Tel: (317) 713-3500
Fax: (317) 713-3699
E-mail: akight@taftlaw.com
Total Assets: $4.25 million
Total Liabilities: $5.74 million
The petition was signed by Craig W. Johnson, president.
A copy of the Debtor's list of two unsecured creditors is
available for free at http://bankrupt.com/misc/insb16-09541.pdf
RADIAL I: S&P Assigns 'B' CCR on Narrow Retail Focus, Outlook Neg.
------------------------------------------------------------------
S&P Global Ratings said it assigned its 'B' corporate credit rating
to King of Prussia, Pa.-based Radial I LP. The outlook is
negative.
"The rating reflects the company's narrow retail focus, highly
seasonal business, and limited track record as a stand-alone
company (spun off from eBayInc. and combined with Innotrac Corp. in
November 2015)," said S&P Global Ratings credit analyst Tuan Duong.
The company's large scale as compared to its primary competitors,
favorable e-commerce industry fundamentals, and long-term customer
relationships partially offset those factors. S&P's negative
rating outlook also reflects its uncertainty about whether the
company can add enough bookings and revenues over the next 12 to 18
months to mitigate client churn.
The negative outlook reflects S&P's expectation for revenue
declines and negative FOCF in 2017, and uncertainty about whether
sufficient bookings and revenue growth over the next 12 to 18
months can mitigate revenues lost from client bankruptcies and
recent client churn. While the company benefits from contracted
revenue streams and favorable e-commerce industry fundamentals,
client churn and seasonal order volumes are unpredictable.
RED RIVER: Wants to Continue Using Cash Collateral
--------------------------------------------------
Adam M. Back, Chapter 11 Trustee for Red River Healthcare, LLC, et
al., asks the U.S. Bankruptcy Court for the Eastern District of
Kentucky for authorization to continue using Cash Collateral.
The Chapter 11 Trustee relates that the Internal Revenue Service,
the Commonwealth of Kentucky, and the Kentucky Division of
Unemployment Insurance may claim an interest in Cash Collateral
pursuant to tax liens filed of record in the Breathitt, Magoffin,
Pike, and Powell County Clerk's Offices.
The Court previously authorized the use of Cash Collateral until
October 30, 2016.
The Cash Collateral consists of:
(1) all cash, negotiable instruments, document of title,
securities, deposit accounts or other cash equivalents derived from
any secured creditor's collateral; and
(2) proceeds, rents, or profits of any secured creditor's
collateral.
The Chapter 11 Trustee asks the authority to use Cash Collateral
for an additional four month term, through and including February
28, 2017, in a manner substantially similar to the usage previously
authorized by the Court's February and June Cash Collateral
Orders.
The Chapter 11 Trustee contends that his need to use Cash
Collateral is essential to continuation of the Chapter 11
proceedings and to ensure continued going-concern operations to
maximize the recovery to all creditors. The Chapter 11 Trustee
further contends that without the use of Cash Collateral as a means
of providing working capital, the Chapter 11 Trustee cannot ensure
that the Debtors meet their ongoing obligations incurred in the
ordinary course of business.
The Debtors' proposed Budget, which covers the months of November
2016 through February 2017, provides for total expenses in the
amount of:
(a) Aaron K. Jonan Memorial Clinic: $48,725 per month
(b) Asthma and Allergy Center: $84,250, per month
(c) Pediatric Associates of Pikeville: $65,425 per month
(d) Red River Healthcare: $75,025, per month
(e) Salyersville Medical Center, LLC: $39,050, per month
As adequate protection for any diminution in the value of the Cash
Collateral Creditors’ interests in the Cash Collateral, the
Chapter 11 Trustee proposes to grant them Replacement Liens,
subject only to any valid and enforceable, perfected, and non-
avoidable liens of other secured creditors.
The Chapter 11 Trustee proposes to make monthly adequate protection
payments to the Internal Revenue Service in the amount of $1,700.
The Chapter 11 Trustee tells the Court that it is willing to
negotiate adequate protection payments with the other Cash
Collateral Creditors as appropriate.
A full-text copy of the Debtors' Motion, dated Dec. 16, 2016, is
available at
http://bankrupt.com/misc/RedRiver2015_1551438tnw_238.pdf
A full-text copy of the Debtors' proposed Budget, dated Dec. 16,
2016, is available at
http://bankrupt.com/misc/RedRiver2015_1551438tnw_238_1.pdf
About Red River Healthcare, LLC
Red River Healthcare, LLC, Aaron K. Jonan Memorial Clinic, Inc.,
Asthma and Allergy Center, LLC, and Pediatric Associates of
Pikeville, LLC each filed chapter 11 petitions (Bankr. E.D. Ky.
Case No. 15-51438, 15-51439, 15-70469, and 15-70470) on July 21,
2015, respectively. Salyersville Medical Center, LLC filed a
chapter 11 petition (Bankr. E.D. Ky. Case No. 15-70818) on December
21, 2015. The petitions were signed by Djien H. So, managing
member. The Debtors are represented by Jamie L. Harris, Esq., at
Delcotto Law Group PLLC.
Red River Healthcare, LLC, Aaron K. Jonan Memorial Clinic, Inc.,
and Pediatric Associates of Pikeville, LLC each estimated assets
and liabilities at $100,001 to $500,000. Asthma and Allergy Center,
LLC and Salyersville Medical Center, LLC each estimated assets at
$100,001 to $500,000 and liabilities at $500,001 to $1 million.
REGAL PETROLEUM: Seeks Approval to Use IRS Cash Collateral
----------------------------------------------------------
Regal Petroleum Company, Inc., asks the U.S. Bankruptcy Court for
the Eastern District of Tennessee for authorization to use cash
collateral.
The Debtor relates that the Internal Revenue Service has a lien on
the Debtor's property pursuant to a tax lien filed in the
Register's Office, Knox County, Tennessee. The Debtor further
relates that the IRS has a lien on the Debtor's receivables. The
Debtor believes that its debt to the IRS is approximately
$700,000.
The Debtor tells the Court that in order to remain in possession of
its property and continue its business activity to achieve a
successful reorganization, the Debtor must be permitted to use cash
collateral in its ordinary business operations. The Debtor further
tells the Court that it has no alternative borrowing source from
which the Debtor could secure additional funding to operate its
business.
The Debtor's proposed monthly Budget provides for total expenses in
the amount of $437,677.
The Debtor proposes to provide the IRS with a replacement lien in
and to all property of its estate of the kind presently securing
the debt to the IRS purchased or acquired with the cash collateral,
and a continuing lien on the Debtor's receivables.
The Debtor further proposes to make monthly adequate protection
payments to the IRS in the amount of $12,000, until a plan of
reorganization is confirmed.
A full-text copy of the Debtor's Motion, dated Dec. 16, 2016, is
available at
http://bankrupt.com/misc/RegalPetroleum2016_316bk33660shb_21.pdf
A full-text copy of the Debtor's proposed Budget, dated Dec. 16,
2016, is available at
http://bankrupt.com/misc/RegalPetroleum2016_316bk33660shb_21_1.pdf
About Regal Petroleum Company
Regal Petroleum Company, Inc., filed a chapter 11 petition (Bankr.
E.D. Tenn. Case No. 16-33660) on Dec. 12, 2016. The petition was
signed by Scott Smith, president. The Debtor is represented by
Keith L. Edmiston, Esq. The case is assigned to Judge Suzanne H.
Bauknight. The Debtor disclosed total assets at $6.33 million and
total liabilities at $1.56 million.
Prior to and after the filing of its bankruptcy petition, the
Debtor has operated as an energy logistics company that purchases,
gathers, transports and markets crude oil and natural gas liquids
to large marketers and end users. It also trans loads product from
rail to truck for delivery to markets.
RELIABLE HUMAN: Has Permission to Use Cash on Final Basis
---------------------------------------------------------
Judge Michael E. Ridgway of the U.S. Bankruptcy Court for the
District of Minnesota authorized Reliable Human Services, Inc. to
use cash collateral on a final basis.
The Minnesota Department of Revenue, Pearl Capital and Direct
Capital Source were granted replacement liens on all assets of the
Debtor -- excluding the Debtor's bankruptcy causes of action -- to
the extent of use of cash collateral. The replacement liens will
have the same priority, dignity and effect as the pre-petition
liens held by said creditors.
A full-text copy of the Final Order, dated December 15, 2016, is
available at https://is.gd/QMVZTw
About Reliable Human Services
Reliable Human Services, Inc. filed a Chapter 11 petition (Bankr.
D. Minn. Case No. 16-43368) on November 15, 2016. The Petition was
signed by Christian K. Kolleh, President. The Debtor is
represented by Steven B. Nosek, Esq., Steven B. Nosek, P.A. At the
time of filing, the Debtor estimated assets at $0 to $50,000 and
liabilities at $500,000 to $1 million.
SIERRA HAMILTON: S&P Lowers CCR to 'D' on Missed Interest Payment
-----------------------------------------------------------------
S&P Global Ratings lowered its corporate credit rating on
U.S.-based exploration and production service provider Sierra
Hamilton LLC. to 'D' from 'CCC'.
At the same time, S&P lowered its issue-level rating on the
company's senior secured debt to 'D' from 'CCC-'. The recovery
rating is '5', indicating S&P's expectation of modest (high end of
the 10% to 30% range) recovery in the event of a payment default.
Sierra Hamilton has entered into a 30-day-grace period to make the
Dec. 15 interest payment on its 12.25% senior secured notes due
2018. The 'D' corporate credit and senior secured ratings reflect
S&P's expectation that Sierra Hamilton will not make the interest
payment on its 12.25% senior secured notes due 2018 within the
30-day-grace period, and will instead seek a debt restructuring.
SUPERIOR LINEN: Court Allows Cash Collateral Use Until Dec. 31
--------------------------------------------------------------
Judge Mike K. Nakagawa of the U.S. Bankruptcy Court for the
District of Nevada authorized Superior Linen, LLC, to use cash
collateral on a final basis, pursuant to the Stipulation between
the Debtor and RD VII Investments, LLC, until Dec. 31, 2016.
The Debtor is indebted to RD VII Investments pursuant to a term
loan in the original principal amount of $5,000,000 and a revolving
loan of up to an original principal amount of $3,500,000. The
indebtedness is secured by a blanket, first priority security
interest in and to all or substantially all of the Debtor's
personal property. As of the Petition Date, the Debtor owes RD VII
Investments at least $7,939,786, exclusive of interest, attorneys'
fees, and other fees, costs, and expenses.
The Debtor is indebted to Midwest Community Development Fund VII,
LLC, pursuant to a Credit Agreement which authorized the Debtor to
borrow up to $6,750,000.
The Debtor, RD VII Investments, and Midwest Community Development
Fund VII entered into a Subordination Agreement, where they agreed
that all of the Debtor's obligations to RD VII Investments are
secured by the collateral, and that the Debtor's obligation to
Midwest Community Development Fund VII will be subordinate and
junior in right of payment to that of RD VII Investments.
RD VII Investments is granted a superpriority claim against the
Debtor and its estate, as well as valid and perfected replacement
security interests in and liens upon the Debtor's assets and
property to the extent held prepetition, and their proceeds.
Midwest Community Development Fund VII, L.L.C., is granted valid
and perfected junior replacement security interests in and liens
upon the Debtor's assets and property to the extent held
prepetition, and their proceeds.
A full-text copy of the Final Order, dated Dec. 16, 2016, is
available at
http://bankrupt.com/misc/SuperiorLinen2016_1615388mkn_151.pdf
RD VII Investments, LLC, is represented by:
Samuel A. Schwartz, Esq.
Bryan A. Lindsey, Esq.
SCHWARTZ FLANSBURG PLLC
6623 Las Vegas Blvd. Ste. 300
Las Vegas, NV 89119
Midwest Community Development Fund VII, L.L.C., is represented by:
Matthews S. Okin, Esq.
David Curry Jr., Esq.
OKIN ADAMS LLP
1113 Vine St., Suite 201
Houston, TX 77002
About Superior Linen, LLC
Superior Linen, LLC, doing business as Superior Linen and Laundry
Services, which operates as a commercial laundry and linen rental
company, filed a chapter 11 petition (Bankr. D. Nev. Case No.
16-15388) on Sept. 30, 2016. The petition was signed by Robert E.
Smith, chief financial officer. The Debtor is represented by
Matthew C. Zirzow, Esq., at Larson & Zirzow, LLC. The case is
assigned to Judge Mike N. Nakagawa. The Debtor estimated assets and
debts at $10 million to $50 million at the time of the filing.
The U.S. Trustee for Region 17 appointed three creditors of
Superior Linen, LLC to serve on the Official Committee of Unsecured
Creditors: Baltic Linen Company, Inc., United Cleaners Supply, Inc.
and Regent Apparel. The Official Committee is represented by
Candace C. Carlyon, Esq. and Matthew R. Carlyon, Esq., at Morris,
Polich & Purdy, LLP.
The Debtor retained Paras Barnett, Esq., at Barnett & Associates as
Special Counsel.
TALL CITY: Has Until Jan. 24 to Use Cash Collateral
---------------------------------------------------
Judge Ronald B. King of the U.S. Bankruptcy Court for the Western
District of Texas authorized Tall City Well Service, LP, to use
cash collateral on an interim basis until Jan. 24, 2017.
The approved Budget provided for total administrative costs in the
amount of $225,000 for December 2016 and $254,000 for January
2017.
The Debtor is directed to maintain its debtor-in-possession bank
account at Wells Fargo Bank, N.A.
Judge King ordered the Debtor to deliver the following reports and
other documentation to the Bank and Wells Fargo Equipment Finance:
(i) the business unit number and the VIN and/or the serial
number of the equipment collateral that the Debtor intends to use
to generate the revenues shown in the Budget;
(ii) the location and/or job site of each such piece of
equipment collateral, including but not limited to, information
regarding the well location and operator name for such well and/or
job site, or the Equipment Location List; and
(iii) each Master Service Agreement, or such other services
contract, under which the Debtor is operating to generate revenues
shown in the Budget.
Wells Fargo Bank and Wells Fargo Equipment Finance were granted
replacement liens and security interests in and on all property of
the Debtor and its bankruptcy estate. The secured creditors were
also granted a super-priority administrative expense claim to the
extent that the replacement liens do not adequately protect their
interests in the cash collateral.
The Debtor was directed to make monthly adequate protection
payments of $10,000 to Wells Fargo Bank, and $14,000 to Wells Fargo
Equipment Finance.
Judge King authorized Wells Fargo Bank to collect and apply to its
outstanding prepetition indebtedness all insurance proceeds
received by the Debtor under insurance claim # 5570145619.
A hearing to further consider the use of cash collateral is
scheduled on Jan. 24, 2017 at 10:00 a.m.
A full-text copy of the Order, dated Dec. 16, 2016, is available at
http://bankrupt.com/misc/TallCity2016_1670079rbk_114.pdf
About Tall City Well Service, LP
Tall City Well Service, LP, filed a chapter 11 petition (Bankr.
W.D. Tex. Case No. 16-70079) on May 17, 2016, and is represented by
Jesse Blanco Jr., Esq. This chapter 11 proceeding is related to
(but not jointly administered with) In re: J G Solis, Inc., (Bankr.
W.D. Tex. Case No. 16-70080) also filed on May 17, 2016. The
petition was signed by Joel G. Solis, partner. The Debtor
estimated its assets and liabilities at $0 to $50,000 at the time
of the filing.
UNIVERSAL SOFTWARE: Court Allows Continued Cash Collateral Use
--------------------------------------------------------------
According to a proceeding memorandum, Judge Christopher J. Panos of
the U.S. Bankruptcy Court for the District of Massachusetts is
authorizing Universal Software Corporation's continued use of cash
collateral. The judge is set to enter an order authorizing the
continued use of cash.
The Debtor has sought the Court's authorization to continue using
TD Bank, N.A.'s cash collateral through March 31, 2017. TD Bank
consents to the Debtor's use of cash collateral.
A full-text copy of the Order, dated Dec. 16, 2016, is available at
http://bankrupt.com/misc/UniversalSoftware2016_1640872_166.pdf
About Universal Software Corporation
Universal Software Corporation filed for Chapter 11 protection
(Bankr. D. Mass. Case No. 16-40872) on May 18, 2016. The petition
was signed by Kishore Deshpande, president. The Debtor is
represented by George J. Nader, Esq., at Riley & Dever, P.C. Judge
Christopher J. Panos presides over the case. The Debtor estimated
assets of $1 million to $10 million and estimated liabilities of $1
million to $10 million.
WEST VIRGINIA HIGH: Can Use Cash Collateral Until May 31
--------------------------------------------------------
Judge Patrick M. Flatley of the U.S. Bankruptcy Court for the
Northern District of Virginia authorized West Virginia High
Technology Consortium Foundatio and HT Foundation Holdings, Inc. to
utilize Cash Collateral generated from their respective properties
on a final basis.
Judge Flatley held that each of the Debtors may use the cash
collateral through May 31, 2017 in the ordinary course of its
business to pay the reasonable and necessary operating expenses of
the Debtors in maintaining and operating the three real estate
properties subject to Huntington Deeds of Trust, and in accordance
with the approved Budget.
Judge Flatley ordered that the aggregate Operating Funds held with
Huntington National Bank should not drop below $945,650 at the end
of any month.
Judge Flatley granted Huntington Bank valid and perfected
replacement liens on all of the Debtors' assets and property
generated post-petition, in the same nature, order and priority and
to the same extent as the Lender had in such property as of the
Petition Date.
The Debtors were directed to make monthly debt service payments of
$70,000 to Huntington Bank, which will be paid on the last business
day of each month.
Each Debtor was directed to provide Huntington Bank with a monthly
financial statement reconciling the preceding month's projected
budget for maintaining and operating the Real Property contained in
the Budget with the Debtors' actual financial results for operating
the Real Property in the preceding month.
Huntington Bank was granted a superpriority claim under section
507(b) of the Bankruptcy Code in the amount of any decrease in the
value of its interest in the Cash Collateral or the Real Property.
A full-text copy of the Final Order, dated December 15, 2016, is
available at https://is.gd/Czrzfs
The Huntington National Bank is represented by:
Christopher P. Schueller, Esq.
BUCHANAN INGERSOLL & ROONEY, LLP
301 Grant Street, 20th Floor One Oxford Centre
Pittsburgh, PA 15219
Telephone: (412) 562-8800
About West Virginia High Technology Consortium
Foundation
West Virginia Hight Technology Consortium Foundation and HT
Foundation Holdings, Inc., filed chapter 11 petitions (Bankr. N.D.
W.Va. Case Nos. 16-00806 and 16-00807) on Aug. 4, 2016. The
petitions were signed by James L. Estep, president and CEO. Judge
Patrick M. Flatley presides over the case. Tthe Debtors estimated
$10 million to $50 million in both assets and liabilities.
David B. Salzman, Esq., at Campbell & Levine, LLC serves as
bankruptcy counsel. The Debtors employ Rolston & Company as real
estate appraiser; Easter Valley, LLC as real estate broker; and
Arnett Carbis Toothman, LLP as accountants.
[*] Fitch Forecasts 3% Energy Default Rate in 2017
--------------------------------------------------
After driving the 2016 rate, US energy defaults will taper off next
year, with a forecast of just 3% compared with the current 18.8%
November trailing 12-month rate (TTM), according to Fitch Ratings.
Fitch expects the US high-yield default rate to finish 2017 at
roughly 3%. US energy default volume totals $39 billion so far
this year, nearly tripling the $14.9 billion registered in 2015.
Energy defaults peaked in the second quarter then slowed amid crude
oil price recovery.
Fitch forecasts nearly $36 billion of US defaults in 2017, well
below the $59 billion posted year to date. There isn't a specific
sector expected to propel the rate, such as energy and
metals/mining in 2016, but there are areas with troubled issuers at
risk.
Fitch expects the US retail sector to have its default rate climb
to roughly 9% from the current 1% TTM level. Increased online
competition, more discounters and consumer spending shifted to
travel and entertainment have challenged mall-based apparel
retailers and is expected to propel certain retailers into default.
However, increased defaults will not materially boost the US rate
as a result of the small 4% weighting of the retail sector within
the US Fitch Default Index.
Healthcare/pharmaceuticals and utilities/power/gas both had their
first 2016 defaults in December when 21st Century Oncology elected
not to make its interest payment and Illinois Power Generating Co.
filed for bankruptcy, respectively. Fitch expects those two
sectors to produce roughly $5 billion of defaults combined next
year.
iHeart Communications, Inc. represents the largest US name on
Fitch's Bonds of Concern list. With nearly $10 billion of bonds
outstanding, the radio broadcaster is expected to pay the $192.9
million of the 5.5% senior notes due today held by public holders,
although it will likely forbear the $57 million that iHeart holds
in the Clear Channel Holdings subsidiary. The large size of the
debt would swing the default rate by 0.7% should a default occur.
Excluding energy and metals/mining and a potential filing for
iHeart, the 2017 US default rate is a benign 2%, in line with the
par-weighted non-recessionary average.
The current TTM US default rate is 4.7%, up from 4.6% at the end of
November. In December, there has already been $3.4 billion of
defaults recorded, more than the past two months combined.
[^] Recent Small-Dollar & Individual Chapter 11 Filings
-------------------------------------------------------
In re Renato Quito Maliwat
Bankr. D. Nev. Case No. 16-16443
Chapter 11 Petition filed December 2, 2016
represented by: Michael J. Harker, Esq.
E-mail: notices@harkerlawfirm.com
In re Sequoia Senior Solutions, Inc.
Bankr. N.D. Cal. Case No. 16-11036
Chapter 11 Petition filed December 7, 2016
See http://bankrupt.com/misc/canb16-11036.pdf
represented by: David N. Chandler, Esq.
LAW OFFICES OF DAVID N. CHANDLER
E-mail: DChandler1747@yahoo.com
In re Exact Plumbing, Inc.
Bankr. M.D. Fla. Case No. 16-07991
Chapter 11 Petition filed December 9, 2016
See http://bankrupt.com/misc/flmb16-07991.pdf
represented by: Taylor J. King, Esq.
LAW OFFICES OF MICKLER & MICKLER
E-mail: tjking@planlaw.com
In re My-Way Trading, Inc.
Bankr. S.D. Ind. Case No. 16-09324
Chapter 11 Petition filed December 9, 2016
See http://bankrupt.com/misc/insb16-09324.pdf
represented by: David R. Krebs, Esq.
HESTER BAKER KREBS LLC
E-mail: dkrebs@hbkfirm.com
In re Omnitatus Group, LLC
Bankr. W.D.N.C. Case No. 16-31984
Chapter 11 Petition filed December 9, 2016
See http://bankrupt.com/misc/ncwb16-31984.pdf
represented by: Sandra U. Cummings, Esq.
THE CUMMINGS LAW FIRM, P.A.
E-mail: c_firm@bellsouth.net
In re Jess C. Arndell and Suzanne K. Arndell
Bankr. D. Nev. Case No. 16-51465
Chapter 11 Petition filed December 9, 2016
represented by: Holly E. Estes, Esq.
E-mail: hesteslaw@gmail.com
In re Its Bashert LLC d/b/a Senses New York Salon and Spa
Bankr. S.D.N.Y. Case No. 16-13449
Chapter 11 Petition filed December 9, 2016
See http://bankrupt.com/misc/nysb16-13449.pdf
represented by: Lawrence Morrison, Esq.
MORRISON TENENBAUM PLLC
E-mail: lmorrison@m-t-law.com
In re Inzi, Inc.
Bankr. N.D. Tex. Case No. 16-34754
Chapter 11 Petition filed December 9, 2016
See http://bankrupt.com/misc/txnb16-34754.pdf
represented by: Eric A. Liepins, Esq.
ERIC A. LIEPINS, P.C.
E-mail: eric@ealpc.com
In re Move-U Packing & Moving, Inc.
Bankr. D. Ariz. Case No. 16-14003
Chapter 11 Petition filed December 12, 2016
Filed Pro Se
In re Craig Danzig
Bankr. S.D. Fla. Case No. 16-26428
Chapter 11 Petition filed December 12, 2016
Filed Pro Se
In re Kamado Grille - Spring Forest Operating, LLC
Bankr. E.D.N.C. Case No. 16-06373
Chapter 11 Petition filed December 12, 2016
See http://bankrupt.com/misc/lawb16-06373.pdf
represented by: Laurie B. Biggs , Esq.
STUBBS & PERDUE, PA
E-mail: efile@stubbsperdue.com
In re Presso Coffee LLC
Bankr. E.D.N.Y. Case No. 16-45581
Chapter 11 Petition filed December 12, 2016
See http://bankrupt.com/misc/nyeb16-45581.pdf
represented by: William X. Zou, Esq.
E-mail: xfzou@aol.com
In re Shaya Yampolskiy
Bankr. E.D.N.Y. Case No. 16-45585
Chapter 11 Petition filed December 12, 2016
represented by: Alla Kachan, Esq.
E-mail: alla@kachanlaw.com
In re Congress Ave LLC
Bankr. E.D.N.Y. Case No. 16-45591
Chapter 11 Petition filed December 12, 2016
See http://bankrupt.com/misc/nyeb16-45591.pdf
represented by: Freddie J. Berg, Esq.
BERG LAW FIRM LLC
E-mail: fredjberglawoffice@gmail.com
In re Papa Fish Market Corp d/b/a Lighthouse 2
Bankr. S.D.N.Y. Case No. 16-13467
Chapter 11 Petition filed December 12, 2016
See http://bankrupt.com/misc/nysb16-13467.pdf
represented by: H. Bruce Bronson, Jr., Esq.
BRONSON LAW OFFICES, P.C.
E-mail: ecf@bronsonlaw.net
In re US Flight Academy International, Inc.
Bankr. N.D. Tex. Case No. 16-10295
Chapter 11 Petition filed December 12, 2016
See http://bankrupt.com/misc/txnb16-10295.pdf
represented by: Charles Dick Harris, Esq.
LAW OFFICE OF DICK HARRIS, PC
E-mail: dharris_law_firm@swbell.net
In re Joseph A Slaby and Cindy L Slaby
Bankr. W.D. Wis. Case No. 16-14136
Chapter 11 Petition filed December 12, 2016
represented by: Greg P. Pittman, Esq.
Pittman & Pittman Law Offices, LLC
E-mail: greg@pittmanandpittman.com
In re John Donaldson
Bankr. N.D. Cal. Case No. 16-53475
Chapter 11 Petition filed December 12, 2016
Filed Pro Se
In re Edmund S. Belanger
Bankr. D. Nev. Case No. 16-16576
Chapter 11 Petition filed December 12, 2016
represented by: Talitha B. Gray Kozlowski, Esq.
GTG,LLP
E-mail: tgray@gtg.legal
In re Abel Delgadillo, Jr. and Angelina Maria Delgadillo
Bankr. S.D. Cal. Case No. 16-07531
Chapter 11 Petition filed December 13, 2016
represented by: Julian McMillan, Esq.
MCMILLAN LAW GROUP
E-mail: julian@mcmillanlawgroup.com
In re Casco Investments, Inc.
Bankr. S.D. Fla. Case No. 16-26517
Chapter 11 Petition filed December 13, 2016
See http://bankrupt.com/misc/flsb16-26517.pdf
represented by: Mark S. Roher, Esq.
LAW OFFICE OF MARK S. ROHER, P.A.
E-mail: mroher@markroherlaw.com
In re 546-548 Broadway Condo Association
Bankr. D.N.J. Case No. 16-33683
Chapter 11 Petition filed December 13, 2016
See http://bankrupt.com/misc/njb16-33683.pdf
represented by: Melinda D. Middlebrooks, Esq.
MIDDLEBROOKS SHAPIRO, P.C.
E-mail: middlebrooks@middlebrooksshapiro.com
In re Abraham S. Biegeleisen DDS, P.C.
Bankr. E.D.N.Y. Case No. 16-45610
Chapter 11 Petition filed December 13, 2016
See http://bankrupt.com/misc/nyeb16-45610.pdf
represented by: Gary C Fischoff, Esq.
BERGER, FISCHOFF & SHUMER, LLP
E-mail: gfischoff@bfslawfirm.com
In re 143 Admiral, LLC
Bankr. S.D.N.Y. Case No. 16-13470
Chapter 11 Petition filed December 13, 2016
See http://bankrupt.com/misc/nysb16-13470.pdf
represented by: Donald Pupke, Esq.
LAW OFFICE OF DONALD PUPKE
E-mail: DPUPKELAW@gmail.com
In re A. H Home Health Care Services, LLC
Bankr. E.D. Pa. Case No. 16-18573
Chapter 11 Petition filed December 13, 2016
See http://bankrupt.com/misc/paeb16-18573.pdf
represented by: Jonathan J. Sobel, Esq.
LAW OFFICE OF JONATHAN J. SOBEL
E-mail: mate89@aol.com
In re Anthony Narancic
Bankr. W.D. Wash. Case No. 16-16176
Chapter 11 Petition filed December 13, 2016
represented by: Larry B. Feinstein, Esq.
VORTMAN & FEINSTEIN
E-mail: feinstein1947@gmail.com
In re Matthew Ortman
Bankr. M.D. Fla. Case No. 16-04530
Chapter 11 Petition filed December 14, 2016
represented by: Adina L Pollan, Esq.
POLLAN LEGAL
E-mail: apollan@pollanlegal.com
In re Margaret Schmidt
Bankr. M.D. Fla. Case No. 16-10622
Chapter 11 Petition filed December 14, 2016
represented by: Suzy Tate, Esq.
SUZY TATE, P.A.
E-mail: suzy@suzytate.com
In re Dr. Marcel B. Gegati, P.A.
Bankr. S.D. Fla. Case No. 16-26559
Chapter 11 Petition filed December 14, 2016
See http://bankrupt.com/misc/flsb16-26559.pdf
represented by: Matis H. Abarbanel, Esq.
LOAN LAWYERS, LLC
E-mail: rocky@fight13.com
In re Gegati Real Estate, LLC
Bankr. S.D. Fla. Case No. 16-26560
Chapter 11 Petition filed December 14, 2016
See http://bankrupt.com/misc/flsb16-26560.pdf
represented by: Matis H. Abarbanel, Esq.
LOAN LAWYERS, LLC
E-mail: rocky@fight13.com
In re SL Gray Enterprises, LLC
Bankr. N.D. Ill. Case No. 16-39388
Chapter 11 Petition filed December 14, 2016
See http://bankrupt.com/misc/ilnb16-39388.pdf
represented by: Karen J Porter, Esq.
PORTER LAW NETWORK
E-mail: porterlawnetwork@gmail.com
In re Bullseye Transport, Inc.
Bankr. S.D. Ill. Case No. 16-41133
Chapter 11 Petition filed December 14, 2016
See http://bankrupt.com/misc/ilsb16-41133.pdf
represented by: Douglas A Antonik, Esq.
ANTONIK LAW OFFICES
E-mail: antoniklaw@charter.net
In re Patel 2601 Realty, LLC
Bankr. S.D. Ind. Case No. 16-09391
Chapter 11 Petition filed December 14, 2016
See http://bankrupt.com/misc/insb16-09391.pdf
represented by: David R. Krebs, Esq.
HESTER BAKER KREBS LLC
E-mail: dkrebs@hbkfirm.com
In re KAG, Inc.
Bankr. D. Mass. Case No. 16-14736
Chapter 11 Petition filed December 14, 2016
See http://bankrupt.com/misc/mab16-14736.pdf
represented by: Jordan L. Shapiro, Esq.
SHAPIRO & HENDER
E-mail: JSLAWMA@aol.com
In re CF Broadcasting LLC
Bankr. E.D. Mich. Case No. 16-22172
Chapter 11 Petition filed December 14, 2016
See http://bankrupt.com/misc/mieb16-22172.pdf
represented by: David R. Shook, Esq.
E-mail: ecf@davidshooklaw.com
In re Industrial Expeditors, LLC
Bankr. S.D. Miss. Case No. 16-52144
Chapter 11 Petition filed December 14, 2016
See http://bankrupt.com/misc/mssb16-52144.pdf
represented by: Patrick A. Sheehan, Esq.
SHEEHAN LAW FIRM
E-mail: pat@sheehanlawfirm.com
In re D.L.A. Ownership Corp.
Bankr. E.D.N.Y. Case No. 16-75818
Chapter 11 Petition filed December 14, 2016
See http://bankrupt.com/misc/nyeb16-75818.pdf
represented by: Richard S Feinsilver, Esq.
E-mail: feinlawny@yahoo.com
In re Dena Sue Weaver
Bankr. E.D. Tex. Case No. 16-60798
Chapter 11 Petition filed December 14, 2016
Filed Pro Se
In re Charles Flowers Harrison and Martha Isabel Montoya
Bankr. C.D. Cal. Case No. 16-15064
Chapter 11 Petition filed December 14, 2016
represented by: Michael Jones, Esq.
M JONES & ASSOICATES, PC
E-mail: mike@mjthelawyer.com
In re Rebeka S. Uddin
Bankr. C.D. Cal. Case No. 16-26358
Chapter 11 Petition filed December 14, 2016
represented by: Lauren Rode, Esq.
CONSUMER ACTION LAW GROUP PC
E-mail: lauren.rode@gmail.com
In re Leticia P. Perez
Bankr. N.D. Cal. Case No. 16-43425
Chapter 11 Petition filed December 14, 2016
represented by: Ruth Elin Auerbach, Esq.
LAW OFFICES OF RUTH ELIN AUERBACH
E-mail: attorneyruth@sbcglobal.net
In re Jose Rincon
Bankr. N.D. Cal. Case No. 16-53506
Chapter 11 Petition filed December 15, 2016
represented by: Dana M. Douglas, Esq.
LAW OFFICES OF DANA M DOUGLAS
E-mail: dmddouglas@hotmail.com
In re Marc Christopher Young Chartered
Bankr. D. Nev. Case No. 16-51477
Chapter 11 Petition filed December 15, 2016
See http://bankrupt.com/misc/nvb16-51477.pdf
represented by: Robert P. Huckaby, Esq.
E-mail: bobhuckaby@aol.com
In re Boysin Ralph Lorick and Cynthia Theresa Lorick
Bankr. E.D.N.Y. Case No. 16-45645
Chapter 11 Petition filed December 15, 2016
represented by: Norma E Ortiz, Esq.
ORTIZ & ORTIZ LLP
E-mail: email@ortizandortiz.com
In re 3023 Seagirt Corporation
Bankr. E.D.N.Y. Case No. 16-45667
Chapter 11 Petition filed December 15, 2016
See http://bankrupt.com/misc/nyeb16-45667.pdf
represented by: Irene Nwanyanwu, Esq.
ANELE & ASSOCIATES
E-mail: irenenn@optonline.net
In re Jordan Quinn Consulting, LLC
Bankr. W.D. Tenn. Case No. 16-31509
Chapter 11 Petition filed December 15, 2016
See http://bankrupt.com/misc/tnwb16-31509.pdf
represented by: Ted I. Jones, Esq.
JONES & GARRETT LAW FIRM
E-mail: dtedijones@aol.com
In re Hesed Enterprises, LLC
Bankr. N.D. Tex. Case No. 16-10299
Chapter 11 Petition filed December 15, 2016
See http://bankrupt.com/misc/txnb16-10299.pdf
represented by: Joyce W. Lindauer, Esq.
JOYCE W. LINDAUER ATTORNEY, PLLC
E-mail: joyce@joycelindauer.com
In re Fahey Exteriors, LLC
Bankr. S.D.W. Va. Case No. 16-30572
Chapter 11 Petition filed December 15, 2016
See http://bankrupt.com/misc/wvsb16-30572.pdf
represented by: Joe M. Supple, Esq.
SUPPLE LAW OFFICE, PLLC
E-mail: info@supplelaw.net
*********
Monday's edition of the TCR delivers a list of indicative prices
for bond issues that reportedly trade well below par. Prices are
obtained by TCR editors from a variety of outside sources during
the prior week we think are reliable. Those sources may not,
however, be complete or accurate. The Monday Bond Pricing table
is compiled on the Friday prior to publication. Prices reported
are not intended to reflect actual trades. Prices for actual
trades are probably different. Our objective is to share
information, not make markets in publicly traded securities.
Nothing in the TCR constitutes an offer or solicitation to buy or
sell any security of any kind. It is likely that some entity
affiliated with a TCR editor holds some position in the issuers
public debt and equity securities about which we report.
Each Tuesday edition of the TCR contains a list of companies with
insolvent balance sheets whose shares trade higher than $3 per
share in public markets. At first glance, this list may look like
the definitive compilation of stocks that are ideal to sell short.
Don't be fooled. Assets, for example, reported at historical cost
net of depreciation may understate the true value of a firm's
assets. A company may establish reserves on its balance sheet for
liabilities that may never materialize. The prices at which
equity securities trade in public market are determined by more
than a balance sheet solvency test.
On Thursdays, the TCR delivers a list of recently filed
Chapter 11 cases involving less than $1,000,000 in assets and
liabilities delivered to nation's bankruptcy courts. The list
includes links to freely downloadable images of these small-dollar
petitions in Acrobat PDF format.
Each Friday's edition of the TCR includes a review about a book of
interest to troubled company professionals. All titles are
available at your local bookstore or through Amazon.com. Go to
http://www.bankrupt.com/books/to order any title today.
Monthly Operating Reports are summarized in every Saturday edition
of the TCR.
The Sunday TCR delivers securitization rating news from the week
then-ending.
TCR subscribers have free access to our on-line news archive.
Point your Web browser to http://TCRresources.bankrupt.com/and use
the e-mail address to which your TCR is delivered to login.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter is a daily newsletter co-published
by Bankruptcy Creditors Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA.
Jhonas Dampog, Marites Claro, Joy Agravante, Rousel Elaine
Tumanda, Valerie Udtuhan, Howard C. Tolentino, Carmel Paderog,
Meriam Fernandez, Joel Anthony G. Lopez, Cecil R. Villacampa,
Sheryl Joy P. Olano, Psyche A. Castillon, Ivy B. Magdadaro, Carlo
Fernandez, Christopher G. Patalinghug, and Peter A. Chapman,
Editors.
Copyright 2016. All rights reserved. ISSN: 1520-9474.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers. Information contained
herein is obtained from sources believed to be reliable, but is
not guaranteed.
The TCR subscription rate is $975 for 6 months delivered via
e-mail. Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance thereof
are $25 each. For subscription information, contact Peter A.
Chapman at 215-945-7000 or Nina Novak at 202-362-8552.
*** End of Transmission ***