/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/170828.mbx T R O U B L E D C O M P A N Y R E P O R T E R Monday, August 28, 2017, Vol. 21, No. 239 Headlines 1776 AMERICAN: Sale of Houston Property for $495K Approved 215 HEMPSTEAD: U.S. Trustee Unable to Appoint Committee 417 RENTALS: Case Summary & 5 Unsecured Creditors 47 HOPS: Taps Wenokur Riordan as Legal Counsel 5 STAR INVESTMENT: Trustee Selling South Bend Properties for $215K 5TH & 6TH LLC: Anchorage Property to Be Sold at Oct. 26 Auction 8281 MERRILL ROAD A: U.S. Trustee Unable to Appoint Committee 8281 MERRILL ROAD C: U.S. Trustee Unable to Appoint Committee AAMINA LLC: Wrights Island Lots Up for Auction on Oct. 30 ACACIA DIVERSIFIED: Liquidity Concerns Raise Going Concern Doubt ADVENTURE NY: U.S. Trustee Unable to Appoint Committee AGENUS INC: Insufficient Funds Raise Going Concern Doubt AJUBEO LLC: Voluntary Chapter 11 Case Summary ALL STAR MEDICAL: Voluntary Chapter 11 Case Summary ALON USA: S&P Raises Corp. Credit Rating to 'BB-', Outlook Stable ALTOMARE AUTO: Exclusive Plan Filing Period Extended to Nov. 21 ALUMINUM EXTRUSIONS: Wants to Obtain Financing, Use Cash Collateral ARIZONA FUNDRAISING: Voluntary Chapter 11 Case Summary ASMUS ELECTRIC: Hires Neil Crane as Bankruptcy Counsel BAILEY'S EXPRESS: May Use Bankwell's Cash Collateral Until Sept. 2 BALDWIN PARK: Seeks Permission to Use Cash Collateral BAY CIRCLE: Sugarloaf Selling Gwinnett Property to Patel for $1.4M BCC SANDUSKY: Ch.11 Trustee Wants to Use BNY Mellon Cash Collateral BEACON ROOFING: Moody's Puts B1 CFR Under Review for Downgrade BEAR METAL: Wants to Use Cash Collateral Until Sept. 15 BIOSTAGE INC: May Issue 8.1M Common & 516 Pref. Shares to Pecos BRIGHT MOUNTAIN: Reports $874,000 Net Loss for Second Quarter BULOVA TECHNOLOGIES: Incurs $3.77 Million Net Loss in 3rd Quarter BURGESS MACHINERY: Plan Filing Deadline Extended Until Dec. 21 CAR CHARGING: Incurs $5.20 Million Net Loss in Second Quarter CASHMAN EQUIPMENT: May Use Cash Collateral Through Aug. 31 CBAK ENERGY: Incurs $3.75 Million Net Loss in Second Quarter CHARIOTS OF PALM: Seeks to Use Cash to Pay Off Expenses CHARIOTS OF PALM: Wants to Use Cash Collateral to Payoff Chase Auto CHARLIELUCY LLC: U.S. Trustee Unable to Appoint Committee CHINA COMMERCIAL: Reports $4.7M Net Loss for Second Quarter CINRAM GROUP: Exclusive Plan Filing Period Extended Until Oct. 16 CIRCULATORY CENTER: Seeks Oct. 20 Exclusive Plan Filing Extension CLUB VILLAGE: Needs Until November 20 to File Chapter 11 Plan COMPLETION INDUSTRIAL: Taps Fishman Jackson as Legal Counsel CRESTALLIANCE LLC: Voluntary Chapter 11 Case Summary DATASTARUSA INC: Case Summary & 20 Largest Unsecured Creditors DELAWARE SPORTS: Has Defaulted on Middletown Lease Obligation DELCATH SYSTEMS: Gets Another Non-Compliance Notice from NASDAQ DIMENSION THERAPEUTICS: Inadequate Funding Cast Going Concern Doubt DOOMAWENDSCHUH LLC: U.S. Trustee Unable to Appoint Committee DYNAMIC INT'L: Taps Shardul Amarchand as Arbitration Counsel EARTH PRIDE: Needs Until January 2018 to File Chapter 11 Plan EC MANSFIELD: Can Use Capital One Cash Collateral Through Sept. 14 EMMAUS LIFE: Incurs $11.8 Million Net Loss in Second Quarter ENDRA LIFE SCIENCES: Cumulative Losses Raise Going Concern Doubt ENTEROMEDICS INC: Recurring Losses Raise Going Concern Doubt ENVIGO LABORATORIES: Moody's Reviews Caa1 CFR for Upgrade ESPLANADE HL: Exclusive Plan Filing Period Extended to Oct. 13 ESPLANADE HL: May Use First Midwest's Cash Until Sept. 10 EVERMILK LOGISTICS: Intends to File Chapter 11 Plan by November 11 EXCEL STAFFING: May Obtain Financing From Stephen Brown, et al. FALCO MOBILE: Has Until December 26 to File Reorganization Plan FAMILY FOR LIFE: Names Glenn Forbes as Attorney FEDERAL BUSINESS: Can Use Cash from Rental Income Until Oct. 31 FIRST NBC: Seeks November 7 Plan Exclusivity Extension FIRST WIVES: Seeks Dec. 18 Exclusive Plan Filing Period Extension FORTERRA INC: S&P Lowers CCR to B- on Weak Performance & Margin FOX RUN: U.S. Trustee Unable to Appoint Committee FULLCIRCLE REGISTRY: Incurs $194,000 Net Loss in Second Quarter FUNERAL SERVICES: U.S. Trustee Unable to Appoint Committee GAWKER MEDIA: Johnson Claims Not Personal Injury Torts, Court Rules GENERAL STEEL: Simon & Edward Replaces Friedman as Accountants GIRARD MANUFACTURING: Case Summary & 20 Top Unsecured Creditors GLAZER FOODS: U.S. Trustee Unable to Appoint Committee GREAT FALLS DIOCESE: Sale of Langstan Villa Apts. for $1.9M Okayed HARRINGTON & KING: Cash Collateral Use Extended Until Sept. 1 HAUBERT HOMES: Hearing on Disclosures Approval Set for Oct. 5 HEALTH CARE TEMPORARIES: Sept. 25 Plan, Disclosures Hearing IGI TRADING: U.S. Trustee Unable to Appoint Committee IMMUNOGEN INC: Insufficient Capital Raises Going Concern Doubt JACKSONVILLE BEAUTY: Taps Lansing Roy as Legal Counsel K&H RESTAURANT: Hires Gertler Law as Special Counsel KNIGHT ENERGY: U.S. Trustee Forms Two-Member Committee LA CASA DE LA RAZA: MLG Filed Initial Brief in Bad Faith LA PALOMA GENERATING: LNV Wants to Terminate Exclusivity Periods LEXINGTON HOSPITALITY: U.S. Trustee Forms 5-Member Committee LINCOLN PARK, MI: S&P Affirms 'BB' LTGO Debt Rating LUKE'S LOCKER: Seeks October 23 Extension of Plan Filing Period M & J ENERGY: Case Summary & 20 Largest Unsecured Creditors MICHAEL L. FOSTER: Properties to Be Sold at Sept. 22 Auction MILK HOUSE: Sizemore Buying Yadkin Property for $142K MINT LEASING: Examiner Hires Porter Hedges as Counsel MJS AUTOMOTIVE: Case Summary & Unsecured Creditor MOREHEAD MEMORIAL: Hires Nelson Mullins as Co-Counsel MOUNTAIN CREEK RESORT: Intends to File Ch.11 Plan by January 2018 NEBFYNEDYNE 15: Seeks Authorization to Use Cash Collateral NET ELEMENT: Nasdaq Grants Request for Continued Listing NEW JERSEY HEADWEAR: Sept. 2 Plan and Disclosures Hearing NEW JERSEY MICRO-ELECTRONIC: Sept. 19 Disclosure Statement Hearing NORTEL NETWORKS: SNMP Software Rightfully Licensed for Use NORTH AMERICAN LIFTING: S&P Affirms CCC+ CCR on Elevated Leverage NUTRITION RUSH: Has Until October 20 to File Reorganization Plan OYSTER COMPANY: Disclosure Statement Hearing Set for Sept. 27 P.D.L. INC: Wants Court Permission to Use Cash Collateral PACHECO BROTHERS: Hires Low Accountancy as Accountant PANDA TAXI: Seeks Permission to Use ConnectOne Cash Collateral PDC ENERGY: S&P Hikes ICR to 'BB-', Outlook Stable PEN INC: Incurs $321K Net Loss in Second Quarter PETROLIA ENERGY: Incurs $1.26 Million Net Loss in Second Quarter PHOENICIAN MEDICAL: Voluntary Chapter 11 Case Summary PHOTOMEDEX INC: Posts $1.13 Million Net Income in Second Quarter PIONEER HEALTH: Sale of Early Assets to Lifebrite for $1M Approved PITTSFIELD DEVELOPMENT: Hires Thompson as Special Counsel PNEUMA INTERNATIONAL: Case Summary & 16 Unsecured Creditors PRIMA PASTA: Plan Exclusivity Deadline Extended Through August 30 PRIME METALS: Resco Products Leaves Creditors' Committee PROTEOSTASIS: Accumulated Losses Raise Going Concern Doubt PUERTO RICO: Ferrovial Agroman, Vitrol Appointed to Committee PUERTO RICO: Phoenix Hired as Financial Advisor for Mediation Team QUADRANGLE PROPERTIES: Seeks 90-Day Exclusivity Period Extension QUINCY MEDIA: S&P Alters Outlook to Pos. on Improved Debt Leverage RANCHO ARROYO: 1240 Palmetto Buying Santa Barbara Property for $7M RENNOVA HEALTH: Grants 2.7M Common Shares to Employees & Directors RENT-A-WRECK: Hires Quarles & Brady as Bankruptcy Counsel RENT-A-WRECK: Hires Saul Ewing as Bankruptcy Co-Counsel RICK'S PATIO: Case Summary & 17 Unsecured Creditors ROCK ELITE: U.S. Trustee Unable to Appoint Committee SAEXPLORATION HOLDINGS: Reports $17.8 Million Net Loss for Q2 SAFWAY GROUP: Moody's Withdraws B3 CFR on Debt Repayment SCI DIRECT: U.S. Trustee Forms Four-Member Committee SEARS HOLDINGS: Incurs $251 Million Net Loss in Second Quarter SENIOR COMMUNITY: Case Summary & 12 Unsecured Creditors SHEPHERD UNIVERSITY: Taps Jaenam Coe as Legal Counsel SHIRAZ HOLDINGS: U.S. Trustee Unable to Appoint Committee SHORT BARK: Wants to Secure $17.7M DIP Financing From LSQ Funding SIGNAL BAY: Incurs $570,454 Net Loss in Second Quarter SIGNET JEWELERS: R2Net Acquisition No Impact on Fitch 'BB' IDR SINO UNITED: Inability to Obtain Financing Cast Going Concern Doubt SMARTY HAD A PARTY: Hires Carmody MacDonald as Counsel STINAR HG: Needs More Time to Stabilize Funds, File Chapter 11 Plan STUDIO TWENTYEIGHT: Taps Stichter Riedel as Legal Counsel SUNSET POINT: Sept. 11 Hearing on Trustee's Bid to Sell Assets TARTAN PINES: Taps Espy Metcalf as Legal Counsel TEMPLE OF HOPE: Needs More Time to Complete Asset Sale, File Plan THERMAGEM LLC: U.S. Trustee Unable to Appoint Committee TK HOLDINGS: Creditors' Panel Hires Epiq as Information Agent TK HOLDINGS: Creditors' Panel Hires Milbank Tweed as Counsel TK HOLDINGS: Creditors' Panel Hires Whiteford as Delaware Counsel TK HOLDINGS: Creditors' Panel Hires Zolfo as Financial Advisor TK HOLDINGS: Creditors' Panel Taps Moelis as Investment Banker TLA HOLDING: Sept. 6 Plan Confirmation and Disclosures Hearing TOD LAS VEGAS: Case Summary & 2 Unsecured Creditors TONGJI HEALTHCARE: Incurs $539,000 Net Loss in Second Quarter TOUCHSTONE HOME: Law Firm Authorized to Continue Arbitration TRACON PHARMA: Needs More Funding to Continue as Going Concern TRAMMELL FAMILY LAKE: Proposed Sale Denied Without Prejudice TRONOX LTD: S&P Alters Outlook to Stable & Affirms 'B' CCR TROY'S DELI: Hires Maureen A. Ryan as Accountant UNITED CHARTER: Hiring Ten-X to Auction Stockton Property USIC HOLDINGS: Partners Group Deal No Impact on Moody's B3 CFR UW OSHKOSH FOUNDATION: Taps Steinhilber Swanson as Legal Counsel VINCE MYERS: Wants Authorization to Use IRS Cash Collateral WEATHERFORD INTERNATIONAL: Appoints Karl Blanchard as COO WET SEAL: Seeks Nov. 29 Exclusive Plan Filing Deadline Extension WILKESBORO HOLDINGS: Taps A. Burton Shuford as Legal Counsel WILLIAM LYLE: Sale of Cairo Property to Sunshine for $200K Approved WILLIAM LYLE: Sale of Valdosta Property to Ray for $325K Approved WILLISTON PARKS: S&P Affirms 'B' Rating on Series 2012A Rev. Bonds WOMEN BY PETER: Hires Morrison-Tenenbaum as Counsel WONDERWORK INC: Awaits Examiner Report, Needs Time to File Plan WORLD HEALTH JETS: Sale of Embraer Executive Aircraft on Sept. 1 [*] Brian Rosen Joins Proskauer's Restructuring & Bankruptcy Group [^] BOND PRICING: For the Week from August 21 to 25, 2017 ********* 1776 AMERICAN: Sale of Houston Property for $495K Approved ---------------------------------------------------------- Judge Karen K. Brown of the U.S. Bankruptcy Court for the Southern District of Texas authorized 1776 American Property IV, LLC, and affiliates to sell the real property located at 5618 Woodbrook Way, Houston, Texas, also known as Lot 12, Block 2, Edison Park, a subdivision in Harris County, Texas, outside of the ordinary course of business to Dr. Luis F. Hernandez or his assignee for $495,000. With the exception of the 2017 ad valorem tax lien, the sale of the Property by the Debtor to the Purchaser will be made free and clear of all liens, claims, encumbrances, judgments, deeds of trust, and other interests. The broker commissions identified in the Contract are approved and will be paid at closing. The Note will be paid in full at closing. All ad valorem tax liens on the Properties will be paid at closing, and the seller's portion of all normal and customary closing costs and fees, including but not limited to owners association fees or dues. Erich Mundinger is authorized on behalf of the Debtor to execute all instruments and documents and to perform all other actions necessary to consummate the transaction contemplated under the Order and the Contract. Any liens, claims and encumbrances will attach to the net sale proceeds in the same order of priority as exist under non-bankruptcy law. The 14-day stay requirements of Bankruptcy Rule 6004(h) are waived. About 1776 American Properties 1776 American Properties IV LLC and its 12 affiliates sought protection under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Tex. Lead Case No. 17-30422) on Jan. 27, 2017. The petitions were signed by Jeff Fisher, director. 1776 American Properties IV estimated assets of $1 million to $10 million and liabilities of less than $50,000. The cases are assigned to Judge Karen K. Brown. Josh T. Judd, Esq., at Andrews Myers PC, serves as the Debtors' bankruptcy counsel. No trustee or examiner has been appointed in the bankruptcy cases and no official committee of unsecured creditors has been established. 215 HEMPSTEAD: U.S. Trustee Unable to Appoint Committee ------------------------------------------------------- An official committee of unsecured creditors has not yet been appointed in the Chapter 11 case of 215 Hempstead Realty Corp. as of August 25, according to a court docket. About 215 Hempstead Realty Corp. 215 Hempstead Realty Corp. filed a Chapter 11 petition (Bankr. E.D.N.Y. Case No. 17-74474) on July 24, 2017. The petition was signed by Nadide Cakici, president. At the time of the filing, the Debtor estimated assets of less than $1 million and liabilities of less than $500,000. McBreen & Kopko represents the Debtor as bankruptcy counsel. The Debtor previously sought protection under Chapter 11 of the Bankruptcy Code (Bankr. E.D.N.Y. Case No. 17-70755). The case was filed on February 10, 2017. 417 RENTALS: Case Summary & 5 Unsecured Creditors ------------------------------------------------- Debtor: 417 Rentals, LLC 5759 W Highway 60 Brookline, MO 65619 Type of Business: 417 Rentals is a privately held company in Brookline, MO, in the real estate rental service industry. Chapter 11 Petition Date: August 25, 2017 Case No.: 17-60935 Court: United States Bankruptcy Court Western District of Missouri (Springfield) Debtor's Counsel: Ronald S. Weiss, Esq. BERMAN DELEVE KUCHAN & CHAPMAN, LLC 1100 Main Street, Suite 2850 Kansas City, MO 64105 Tel: 816-471-5900 Fax: 816-842-9955 E-mail: rweiss@bdkc.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Christopher Gatley, member. The Debtor's list of five unsecured creditors is available for free at http://bankrupt.com/misc/mowb17-60935.pdf 47 HOPS: Taps Wenokur Riordan as Legal Counsel ---------------------------------------------- 47 Hops LLC seeks approval from the U.S. Bankruptcy Court for the Eastern District of Washington to hire legal counsel. The Debtor proposes to employ Wenokur Riordan PLLC to give legal advice regarding its duties under the Bankruptcy Code and provide other legal services related to its Chapter 11 case. The hourly rates charged by the firm are: Alan Wenokur $410 Nathan Riordan $400 Associates $270 Paralegal $100 Wenokur Riordan's representation of the Debtor does not conflict with its representation of other clients, according to court filings. The firm can be reached through: Nathan T Riordan, Esq. Wenokur Riordan PLLC 600 Stewart Street, Suite 1300 Seattle, WA 98101 Tel: 206-903-0401 Email: nate@wrlawgroup.com About 47 Hops LLC Based in Yakima, Washington, 47 Hops LLC -- https://47hops.com/ -- sells aroma and alpha hops to breweries in 38 countries around the world. The Debtor sought protection under Chapter 11 of the Bankruptcy Code (Bankr. E.D. Wash. Case No. 17-02440) on August 11, 2017. Douglas MacKinnon, president, signed the petition. At the time of the filing, the Debtor disclosed $4.3 million in assets and $7.45 million in liabilities. Judge Frank L. Kurtz presides over the case. 5 STAR INVESTMENT: Trustee Selling South Bend Properties for $215K ------------------------------------------------------------------ Douglas R. Adelsperger, Trustee of 5 Star Investment Group, LLC, and affiliates, asks the U.S. Bankruptcy Court for the Northern District of Indiana to authorize the private sale of real estate commonly known as (i) 2614 Edison Road, South Bend, St. Joseph County, Indiana for $42,000; (ii) 1845 Renfrew Drive, South Bend, St. Joseph County, Indiana ("Renfrew Drive") for $53,000; (iii) 1324 Northlea Street, South Bend, St. Joseph County, Indiana for $30,000; (iv) 19261 Greenacre Street, South Bend, St. Joseph County, Indiana for $55,000; and (v) 841 South 35th Street, South Bend, St. Joseph County, Indiana for $35,000, to William Watterud. On the Petition Date, Debtor 5 Star Investment Group V, LLC, was the sole owner of the Real Estate. The Real Estate is subject to various tax liens for delinquent real estate taxes that have accrued for 2014 through 2016, and real estate taxes that will accrue for 2017. It is also subject to various Investor Mortgages. Finally, Renfrew Drive is subject to a disputed mechanic's lien in favor of Advanced Roofing & Home Improvement, LLC in the approximate sum of $330. The Mechanic's Lien was recorded on Feb. 5, 2016 in the Office of the Recorder of St. Joseph County, Indiana, as Instrument No. 1602815, for unauthorized postpetition work done on Feb. 2, 2017. On Aug. 15, 2017, pursuant to the sole efforts of the Tiffany Group, the Trustee entered into the Purchase Agreement for the sale of the Real Estate to the Purchaser for the total purchase price of $215,000. The Purchase Agreement provides for the sale of the Real Estate, free and clear of all liens, encumbrances, claims and interests. It also provides that any portion of the Tax Liens that represent delinquent real estate taxes, including real estate taxes that have accrued for 2014 through 2016, will be paid in full at closing. In addition, the Purchase Agreement provides that any portion of the Tax Liens that represents real estate taxes for 2017 will be prorated as of the date immediately prior to the date of closing. Moreover, the Purchase Agreement provides that any other special assessment liens, utilities charges, water and sewer charges, and any other charges customarily prorated in similar transactions will be prorated as of the date immediately prior to the date of closing. A copy of the Purchase Agreement attached to the Motion is available for free at: http://bankrupt.com/misc/5_Star_930_Sales.pdf Although the Trustee is still in the process of liquidating the assets of the Consolidated Bankruptcy Estate, it appears that the assets will fall short of paying the plethora of claimants. Unfortunately, under these circumstances, no distribution method can possibly compensate all the investors/creditors fully for their losses. In order to ensure the fair and equitable treatment of all investors/creditors in these bankruptcy cases, the Trustee proposes to sell all real estate free and clear of investor mortgages, with the liens to attach to the proceeds until further order of the Court. The Trustee anticipates that the resolution of how the funds should be distributed will be raised in the future pursuant to either a chapter 11 plan and/or separate actions. At such time, all parties can be heard on how the proceeds from the sale of the Real Estate secured by the Investor Mortgages should be distributed. The Trustee submits that the proposed sale pursuant to the Purchase Agreement will accomplish a "sound business purpose" and will result in the maximized value for the Real Estate. The Trustee believes, based on the advice of the Tiffany Group, that the purchase price of $215,000 reflects the combined fair market value of the Real Estate, and it therefore maximizes recovery. The Trustee asks the Court to authorize him to disburse from the sale proceeds to pay (i) the costs and expenses of the sale, including the commission owed to Tiffany Group (approximately $10,750); (ii) all real estate taxes and assessments outstanding and unpaid at the time of the sale, including the Tax Liens; and (iii) the prorated portions for any other special assessment liens, utilities, water charges, sewer charges and any other charges customarily prorated in similar transactions. The Trustee asks the Court to waive the requirements of Bankruptcy Rule 6004(h) in order to allow the Trustee to timely and expeditiously consummate the proposed sale. The Purchaser can be reached at: William Watterud 611 S. Main Street Mishawaka, IN 464554 About 5 Star Investment Group On Nov. 5, 2015, the U.S. Securities Exchange Commission ("SEC") filed a complaint against Earl D. Miller, 5 Star Capital Fund, LLC and 5 Star Commercial, LLC, in the United States District Court for the Northern District of Indiana, Hammond Division ("SEC Action"). In its complaint, the SEC alleged that Miller, 5 Star Capital Fund, and 5 Star Commercial defrauded at least 70 investors from whom they raised funds of at least $3,900,000. Additionally, on Nov. 5, 2015, the SEC obtained an ex parte temporary restraining Order, asset freeze and other emergency relief in the SEC Action. 5 Star Investment Group and its 10 affiliates owned by Eardl D. Miller sought protection under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Ind. Lead Case No. 16-30078) on Jan. 25, 2016. 5 Star estimated its assets at up to $50,000 and its liabilities between $1 million and $10 million. The Debtors' counsel was Katherine C. O'Malley, Esq., at Cozen O'Connor, in Chicago, Illinois. The cases are assigned to Judge Harry C. Dees, Jr. On Feb. 29, 2016, Douglas R. Adelsperger was appointed as Chapter 11 trustee in each of the bankruptcy cases. On March 23, 2016, the Court entered an order consolidating the bankruptcy cases for purposes of administration only. On June 24, 2016, the Court entered its agreed order granting the Trustee's Motion for substantive consolidation, substantively consolidating the Debtors' bankruptcy cases for all postpetition matters and purposes, effective as of the Petition Date, and deeming that all assets and liabilities of the bankruptcy cases to be consolidated into one bankruptcy estate, to be administered in accordance with the Bankruptcy Code under the jurisdiction of the Court ("Consolidated Bankruptcy Estate"). On July 21, 2016, the Court entered order granting application to employ Tiffany Group Real Estate Advisors, LLC, as the bankruptcy estates' broker. The Trustee's attorneys: RUBIN & LEVIN, P.C. Meredith R. Theisen Deborah J. Caruso John C. Hoard James E. Rossow, Jr. Meredith R. Theisen 135 N. Pennsylvania Street, Suite 1400 Indianapolis, Indiana 46204 Tel: (317) 634-0300 Fax: (317) 263-9411 E-mail: dcaruso@rubin-levin.net johnh@rubin-levin.net jim@rubin-levin.net mtheisen@rubin-levin.net 5TH & 6TH LLC: Anchorage Property to Be Sold at Oct. 26 Auction --------------------------------------------------------------- Beacon Default Management, Inc., a California corporation, as successor trustee, will sell the property of 5th & 6th LLC, an Alaska limited liability company, at a public auction, for cash or cashier's check, to the highest and best bidder, at the BONEY COURTHOUSE, 303 "K" Street, Anchorage, AK 99501 on October 26, 2017 at 10:00 a.m. The property is commonly referred to as 900 West 5th Avenue and 943 West 6th Avenue Anchorage, Alaska. Proceeds of the sale will be used to satisfy debt owed to The Bank of New York Mellon Trust Company, National Association, as Trustee for Morgan Stanley Capital I, Inc., Commercial Mortgage Pass-Through Certificates, Series 2007-IQ14 ("Noteholder"). Beacon says 5th & 6th owes $13,020,520 as of July 17, 2017 under a deed of trust. This amount is comprised of: (i) principal - $12,963,788.76; (ii) interest - $288,228.24; (iii) default interest - $246,686.48; (iv) expenses - $23,701.00; less credits for: (v) tax escrow - [$25,799.92]; (vi) insurance escrow - [$33,634.24]; (vii) replacement reserves - [$43,631.00]; (viii) TI/LC reserves - [$133,350.85]; and (ix) suspense amount - [$265,468.81]. The loan matured on March 1, 2017. Bank of New York under the Deed of Trust has elected to conduct a unified foreclosure sale pursuant to AS 45.29.601 and to include in the non-judicial foreclosure of the estate all of the personal and fixtures described in the Deed of Trust and in any other instruments in favor of the beneficiary. BoNY will have the right to make an offset bid at sale without cash. Beacon may be reached at: Bert Haboucha Beacon Default Management, Inc. 23072 Lake Center Drive, Suite 211 Lake Forest CA 92630 Tel: (949) 916-8799 Fax: (949) 916-8797 8281 MERRILL ROAD A: U.S. Trustee Unable to Appoint Committee ------------------------------------------------------------- The Office of the U.S. Trustee on Aug. 24 disclosed in a court filing that no official committee of unsecured creditors has been appointed in the Chapter 11 case of 8281 Merrill Road A, LLC. About 8281 Merrill Road A, LLC 8281 Merrill Road A, LLC, filed a Chapter 11 bankruptcy petition (Bankr. S.D. Fla. Case No. 17-17027) on June 2, 2017. The Hon. Raymond B. Ray presides over the case. Messana, PA, represents the Debtor as counsel. In its petition, the Debtor estimated $100,000 to $500,000 in assets and $1 million to $10 million in liabilities. The petition was signed by Tim O'Brien, manager of manager. 8281 MERRILL ROAD C: U.S. Trustee Unable to Appoint Committee ------------------------------------------------------------- The Office of the U.S. Trustee on Aug. 24 disclosed in a court filing that no official committee of unsecured creditors has been appointed in the Chapter 11 case of 8281 Merrill Road C LLC. About 8281 Merrill Road C LLC 8281 Merrill Road C, LLC, filed a Chapter 11 bankruptcy petition (Bankr. S.D. Fla. Case No. 17-17028) on June 2, 2017, disclosing under $1 million in both assets and liabilities. The Debtor is represented by Brett D. Lieberman, Esq., at Messana PA. AAMINA LLC: Wrights Island Lots Up for Auction on Oct. 30 --------------------------------------------------------- Fidelity Title Agency of Alaska, as Trustee, will sell real property of Aamina, LLC, at public auction inside the front door of the Boney Courthouse, 303 K Street, Anchorage, Alaska, on October 30, 2017, at 10:00 a.m. The properties are Lots 5A and 5B, Wrights Island Subdivision. Aamina, LLC, has been declared in default under a 2012 loan agreement with Mellen Investment Company, LLC. The amount due and owing by Aamina to Mellen is $476,319.86 in principal, plus interest from June 9, 2017 to June 29, 2017 at the rate of 9.50% in the amount of $2,481.68, interest from June 30, 2017 at the rate of 12.00% per annum until paid in full, late charges in the amount of $399.51, non-sufficient funds fee in the amount of $25.00. attorney's fees to date in the amount of $1,287.00, property insurance charges in the amount of $2,349.00, trustee sale guaranty charges in the amount of $1,784.50, and any other sums properly advanced and expended under the terms of a Deed of Trust. Mellen, as Beneficiary, will have the right to make an offset bid without cash in an amount equal to the balance owed on the obligation at the time of sale. The sale shall only be cancelled if, prior thereto, payment is made in full of the principal sum due, interest and all other costs due. The Trustee may be reached at: Leslie Pickat, COO Fidelity Title Agency of Alaska 3150 C St #220 Anchorage, AK 99503 Tel: 907-277-6601 ACACIA DIVERSIFIED: Liquidity Concerns Raise Going Concern Doubt ---------------------------------------------------------------- Acacia Diversified Holdings, Inc., filed its quarterly report on Form 10-Q, disclosing a net loss of $509,808 on $132,715 of revenue for the three months ended June 30, 2017, compared with a net loss of $304,906 on $nil of revenue for the same period in 2016. For the six months ended June 30, 2017, the Company listed a net loss of $1,204,318 on $280,361 of revenue, compared to a net loss of $565,381 on $225,366 of revenue for the same period in the prior year. The Company's balance sheet at June 30, 2017, showed $1,023,165 in total assets, $900,941 in total liabilities, and a stockholders' equity of $122,224. The Company has not generated profit to date. The Company expects to continue to incur operating losses as it proceeds with its extraction and research and development activities and continues to navigate through the regulatory process. The Company expects general and administrative costs to increase, as the Company adds personnel and other administrative expenses associated with its current efforts. As such, and without substantially increasing revenue or finding new sources of capital, the Company will find it difficult to continue to meet its obligations as they come due. The Company continues to seek working capital but there can be no assurance that the Company will be successful in its efforts to raise capital, or if it were successful in raising capital, that it would be successful in meeting its business plans. While the services performed by the Company's MariJ Pharma subsidiary are anticipated to be sufficient to partly meet the Company's liquidity needs, these factors raise substantial doubt as to the ability of the Company to continue as a going concern. A copy of the Form 10-Q is available at: https://is.gd/t6zfv6 Clearwater, Fla.-based Acacia Diversified Holdings, Inc., is a diversified holding company. The Company focuses on conducting its business operations through its subsidiaries, such as MariJ Pharmaceuticals, Inc. (MariJ), and Canna-Cures Research & Development Center, Inc., in which it focuses on including the operations of the MariJ Agricultural and Canna-Cures entities. MariJ focuses on the extraction and processing of high-cannabidiol (CBD)/low-tetrahydrocannabinol (THC) content medical grade cannabis oils from medical cannabis plants. MariJ has a mobile cannabis oil processing and extraction unit designed into a heavy-duty vehicle. ADVENTURE NY: U.S. Trustee Unable to Appoint Committee ------------------------------------------------------ An official committee of unsecured creditors has not yet been appointed in the Chapter 11 case of Adventure NY Corp. as of August 25, according to a court docket. Adventure NY is represented by: Roy J. Lester, Esq. Lester & Associates, P.C. 600 Old Country Road, Suite 229 Garden City, NY 11530 Phone: (516) 357-9191 Email: rlester@rlesterlaw.com About Adventure NY Corp. Adventure NY Corp. sought protection under Chapter 11 of the Bankruptcy Code (Bankr. E.D.N.Y. Case No. 17-74506) on July 25, 2017. The petition was signed by Jolanta Short, president. At the time of the filing, the Debtor disclosed that it had estimated assets of less than $1 million and liabilities of less than $500,000. AGENUS INC: Insufficient Funds Raise Going Concern Doubt -------------------------------------------------------- Agenus Inc. filed its quarterly report on Form 10-Q, disclosing a net loss of $31.71 million on $4.21 million of total revenues for the three months ended June 30, 2017, compared with a net loss of $28.32 million on $6.59 million of total revenues for the same period in 2016. For the six months ended June 30, 2017, the Company listed a net loss of $48.82 million on $31.16 million of total revenues, compared to a net loss of $60.20 million on $12.55 million of total revenues for the same period in the prior year. The Company's balance sheet at June 30, 2017, showed $176.49 million in total assets, $193.97 million in total liabilities, and a stockholders' deficit of $17.48 million. Based on the Company's current plans and activities, its cash, cash equivalents and short-term investments balance of $96.8 million as of June 30, 2017 would only be sufficient to satisfy the Company's liquidity requirements through the first quarter of 2018 without any additional funding before that time, which the Company anticipates. Regardless of this anticipated funding, in accordance with ASU 2014-15 this is deemed to be a condition which raises substantial doubt regarding the Company's ability to continue as a going concern for at least one year from when these financial statements were issued. In order to continue as a going concern, the Company expects to raise additional funding from currently contemplated transactions before year end. The Company also continues to monitor the likelihood of success of its key initiatives and are prepared to discontinue funding of such activities if they do not prove to be feasible, restrict capital expenditures and/or reduce the scale of the Company's operations, if necessary. If the Company incur operating losses for longer than they expect and/or they are unable to raise additional capital, the Company may become insolvent and be unable to continue its operations. A copy of the Form 10-Q is available at: https://is.gd/ljBWJx Agenus Inc. is a clinical-stage immuno-oncology ("I-O") company focused on the discovery and development of therapies that engage the body's immune system to fight cancer. The Lexington, Mass.-based Company is developing a number of immuno-modulatory antibodies against important nodes of immune regulation. These include antibodies targeting CTLA-4, GITR, OX40, and PD-1 that are in clinical development. The Company's discovery pipeline includes a range of checkpoint modulating ("CPM") antibodies against innovative targets such as TIGIT and 4-1BB (also known as CD137). AJUBEO LLC: Voluntary Chapter 11 Case Summary --------------------------------------------- Debtor: Ajubeo LLC 1470 Walnut Street, Suite 400 Boulder, CO 80302 Type of Business: Ajubeo -- https://www.ajubeo.com -- is a privately held provider of internet infrastructure software and equipment. Founded in 2011 and headquartered in Greater Denver Area in Boulder, Colorado, Ajubeo serves clients all over the world with datacenter hubs in Denver, New Jersey, Frankfurt, and Dusseldorf Germany. The word Ajubeo, pronounced "A-Joo-Bee-Oh", is derived from Latin and is defined as "Beginning with strong relationships, mastery and order." Chapter 11 Petition Date: August 25, 2017 Case No.: 17-17924 Court: United States Bankruptcy Court District of Colorado (Denver) Debtor's Counsel: Joshua M. Hantman, Esq. BROWNSTEIN HYATT FARBER SCHRECK, LLP 410 17th St., Ste. 2200 Denver, CO 80202 Tel: 303.223.1216 Fax: 303.223.1111 E-mail: jhantman@bhfs.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Jeff Kuo, chairman of Board of Managers. The Debtor's list of 20 largest unsecured creditors is available for free at http://bankrupt.com/misc/cob17-17924.pdf ALL STAR MEDICAL: Voluntary Chapter 11 Case Summary --------------------------------------------------- Debtor: All Star Medical, LLC P.O. Box 18947 Huntsville, AL 35804 Type of Business: All-Star Medical -- http://www.allstarmedical.com/-- is a locally owned and operated medical equipment company located in Albertville, Cullman, Huntsville and Madison, Alabama. Its mission is to become the premier provider of durable medical equipment in North Alabama. Some of the medical equipment that the Company offers are oxygen tanks, nebulizers, CPAP's, BiPAP's, hospital beds, walkers, wheelchairs, power chairs, scooters, lift chairs, alternating and low air loss mattresses and ambulatory and bath safety items. Chapter 11 Petition Date: August 24, 2017 Case No.: 17-82507 Court: United States Bankruptcy Court Northern District of Alabama (Decatur) Judge: Hon. Clifton R. Jessup Jr. Debtor's Counsel: Kevin D. Heard, Esq. HEARD, ARY & DAURO, LLC 303 Williams Avenue SW Park Plaza Suite 921 Huntsville, AL 35801 Tel: (256) 535-0817 Fax: (256) 535-0818 E-mail: kheard@heardlaw.com aary@heardlaw.com; adauro@heardlaw.com Total Assets: $1.37 million Total Liabilities: $2.12 million The petition was signed by Philip Garmon, owner. The Debtor failed to include a list of its 20 largest unsecured creditors at the time of the filing. A full-text copy of the petition is available for free at: http://bankrupt.com/misc/alnb17-82507.pdf ALON USA: S&P Raises Corp. Credit Rating to 'BB-', Outlook Stable ----------------------------------------------------------------- S&P Global Ratings said that it has raised its corporate credit rating on variable master limited partnership (MLP) Alon USA Partners L.P. to 'BB-' from 'B+'. The rating outlook is stable. S&P said, "At the same time, we raised the issue-level rating on the partnership's senior secured notes to 'BB' from 'BB-'. The '2' recovery rating on the debt is unchanged, reflecting our expectation of substantial (70%-90%; rounded estimate: 75%) recovery in the event of a payment default." Following the recent acquisition of Alon USA Energy Inc., Delek is now the partnership's ultimate parent and general partner owner. S&P said, "Our view of the partnership's stand-alone operations and stand-alone credit profile are unchanged following the merger. That said, in our view, its new ultimate parent, Delek, has a stronger credit quality. Delek has greater scale and is more diversified following the merger. On the second quarter earnings call, the Delek US management team made it clear that having three separate public entities (including Alon USA Partners) did not make sense; however, it will be patient in simplifying the structure. As a result, the partnership's rating benefits from one-notch of uplift due to its level of strategic importance to Delek US. "The stable outlook reflects our expectation of refining margins of about $12 per barrel, resulting in adjusted debt to EBITDA in the 1.5x-2.0x range while maintaining adequate liquidity. "We could consider lower ratings if Delek US' consolidated credit metrics deteriorated due to a sustained period of weak crack spreads (i.e., the difference between crude oil and refined product prices) or operational underperformance or if liquidity weakens. "Higher ratings are unlikely due to the partnership's limited scale and asset diversity. We could consider higher ratings if Delek US continued to expand its asset base and diversified its cash flows into more stable fee-based operations." ALTOMARE AUTO: Exclusive Plan Filing Period Extended to Nov. 21 --------------------------------------------------------------- At the behest of Altomare Auto Group, LLC, d/b/a Union Volkswagen, and Altomare 22 Union, LLC, Judge John K. Sherwood of the U.S. Bankruptcy Court for the District of New Jersey extended the Debtors' exclusive periods for: -- filing a Plan of Reorganization through November 21, 2017, and -- obtaining confirmation of a Plan of Reorganization through January 22, 2018. The Troubled Company Reporter has previously reported that the Debtors sought exclusivity extension, claiming they needed additional time to formulate a Plan of Reorganization and advise creditors as to the proposed distribution of the portion of settlement proceeds anticipated to be received by the estate from settlement of the Volkswagen of America litigation. The Debtors told the Court that it has spent the bulk of their time in Chapter 11: (a) negotiating cash collateral arrangements with the secured creditors, (b) negotiating and ultimately obtaining approval for a sale of substantially all of the assets in this estate, (c) engaging in the aforesaid litigation, and (d) objecting to claims. The Debtors said the Court entered an order on September 8, 2016, authorizing the sale of substantially all of the Debtors' assets. Excluded from the sale are potential causes of action and general intangibles, including, but not limited to, the cause of action pending in Union County, as well as any funds which will be flowing to Altomare Auto Group as a result of a recent settlement between Volkswagen of America and its dealers. The Debtors alleged that a mediation hearing has been scheduled regarding the Volkswagen litigation which, hopefully, will provide more certainty as to what creditors may receive under a plan in this case. The Debtors said that once this information would be available, the Debtor will be able to inform creditors as to what portion of the settlement proceeds will be received by the estate, which will then be made available for distribution. About Altomare Auto Group, LLC Altomare Auto Group, LLC sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D. N.J. Case No. 16-22376) on June 27, 2016. On June 30, 2016, Altomare 22 Union, LLC filed a Chapter 11 petition (Bankr. D. N.J. Case No. 16-22628). The petitions were signed by Anthony Altomare, managing member. The cases are jointly administered and are assigned to Judge John K. Sherwood. At the time of the filing, Altomare Auto disclosed $9.04 million in assets and $12.78 million in liabilities. Meanwhile, Altomare 22 disclosed $256,877 in assets and $6.24 million in liabilities. The Debtors are represented by Daniel Stolz, Esq., at Wasserman, Jurista & Stolz, P.C. The Debtors retained Arent Fox LLP as special automotive counsel; BMC Group, Inc. as its noticing and balloting agent; D.T. Murphy & Company as automotive consultants; and WithumSmith & Brown as accountant. No official committee of unsecured creditors has been appointed in the case. ALUMINUM EXTRUSIONS: Wants to Obtain Financing, Use Cash Collateral ------------------------------------------------------------------- Aluminum Extrusions, Inc., seeks approval from the U.S. Bankruptcy Court for the Northern District of Mississippi to obtain secured postpetition financing on a super-priority basis from the Bank of Montgomery and to use cash collateral. Bank of Montgomery proposes to provide Aluminum Extrusions debtor-in-possession financing on these terms: * Amount: $400,000 non-revolving line of credit, subject to receipt of and compliance with a budget satisfactory to and approved by Lender * Interest: Prime + 2.25%, adjusted daily * Fees: None * Collateral: 1. Priming lien on existing pre-petition collateral: 2. lst lien on post-petition assets (including but not limited to AR, Inventory, cash, proceeds) 3. Super-priority administrative expense claim, subject to carve-outs for debtor counsel, UST/clerk fees, trust fund taxes * Term: 120 days, extension of 60 additional days if agreement for sale of assets is reached and at Lender discretion * Repayment: Repayment in full at maturity * Accounts: Required to be at BOM * Expenses: Same as those required under pre-petition loan documents, but will include all costs and fees (including attorneys' fees and expenses and appraisal fees) incurred by Lender Conditions: 1. Satisfactory assurance from customers of continued agreement to supply aluminum billet 2. Receipt and approval of budget and draw schedule 3. Satisfactory approval from USDA of terms of DIP loan 4. Entry of interim and final orders in form and substance satisfactory to Lender 5. Other additional terms to be determined, as necessary, upon receipt and review of budget. As adequate protection to the Bank of Montgomery for the granting of a priming lien and security interest on the prepetition collateral, the Debtor seeks authorization to remit payments of interest only on the indebtedness owed to the Bank of Montgomery on the prepetition loan, which amounts are set forth in the Budget. The Debtor has stipulated and agreed that the indebtedness owed to the Bank of Montgomery as of the Petition Date in the amount of $ 4,300,288. The Debtor will grant to the Bank of Montgomery priming, first priority lien on and security interest in all prepetition collateral, which will be senior to Bank of Montgomery's lien on and security interest in the prepetition collateral. The Debtor will also grant to the Bank of Montgomery a first priority lien and security interest on all assets acquired on or after the Petition. Bank of Montgomery will also be granted a super-priority administrative claim to the extent the liens granted to the Bank of Montgomery is insufficient to adequately protect its interests in the collateral. Since February of 2015, the Debtor has had a revolving credit facility with Triumph Bank of Memphis, Tennessee, which line of credit was secured by the Debtor's inventory and accounts receivable. Pursuant to that credit facility, the Debtor's accounts receivable are deposited directly to a lock box account controlled by Triumph Bank and Triumph Bank has advanced operating funds to the Debtor based on availability on the Debtor's line of credit. Since the Petition Date, Triumph Bank has been collecting the Debtor's prepetition accounts receivable. The Debtor's need for both the use of cash collateral and additional post-petition financing is compelling. The Debtor has an immediate need to purchase, use, consume, sell, and otherwise dispose of inventory in the ordinary course of business. As such, the Debtor claims that its ability to borrow funds to acquire raw materials for its production and concomitant generation of new accounts receivable is necessary to its ability to maintain the value of the business enterprise throughout the bankruptcy process. The Debtor asserts that in order to continue its operations, it is necessary that the Debtor obtain immediate working capital with which to purchase inventory, pay operating expenses and maintain its operations. A full-text copy of the Debtor's Motion, dated August 17, 2017, is available at https://is.gd/NziaM6 Attorneys for Triumph Bank: Robert F. Miller, Esq. Farris Bobango PLLC 999 Shady Grove, Suite 400 Memphis, TN 38120 Email: rfmiller@farris-law.com About Aluminum Extrusions Established in 1993, Aluminum Extrusions Inc. -- http://aluminumextrusionsinc.com-- offers services that range from extrusion, painting, fabrication, packaging and shipping of aluminum. Its facility is located in Senatobia, MS -- a mere 30 miles south of Memphis, Tennessee. Aluminum Extrusions sought protection under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Miss. Case No. 17-12693) on July 21, 2017. John C. King, president, signed the petition. At the time of the filing, the Debtor estimated assets and liabilities of $1 million to $10 million. Judge Jason D. Woodard presides over the case. The Debtor hired Michael P. Coury, Esq. at Glankler Brown, PLLC as its legal counsel in connection with its Chapter 11 case. No request for a trustee or examiner has been made to date, and no committee has been appointed in the case. ARIZONA FUNDRAISING: Voluntary Chapter 11 Case Summary ------------------------------------------------------ Debtor: Arizona Fundraising Solutions, Inc. d/b/a Apex Fun Run RUN AZ 4250 N. Drinkwater Blvd, 4th Floor Scottsdale, AZ 85251 Tel: 480-425-2600 Type of Business: The mission at Apex Fun Run is all about building leaders and promoting fitness, while raising funds in schools around Arizona. Arizona Fundraising's principal place of business is 793 E. Maria Lane, Tempe, AZ. Web site: http://apexfunrun.com/apexaz Chapter 11 Petition Date: August 25, 2017 Case No.: 17-10016 Court: United States Bankruptcy Court District of Arizona (Phoenix) Judge: Hon. Paul Sala Debtor's Counsel: Randy Nussbaum, Esq. SACKS TIERNEY P.A. 4250 N. Drinkwater Blvd., Fouth Floor Scottsdale, AZ 85251 Tel: 48-425-2600 Fax: 480-970-4610 E-mail: randy.nussbaum@sackstierney.com - and - Wesley Denton Ray, Esq. SACKS TIERNEY P.A. 4250 N. Drinkwater Blvd., 4th Floor Scottsdale, AZ 85251-3693 Tel: 480-425-2674 E-mail: Ray@SacksTierney.com Estimated Assets: $0 to $50,000 Estimated Liabilities: $1 million to $10 million The petition was signed by Christopher J. Stewart, president. The Debtor did not file a list of its 20 largest unsecured creditors on the Petition Date. A full-text copy of the petition is available for free at: http://bankrupt.com/misc/azb17-10016.pdf ASMUS ELECTRIC: Hires Neil Crane as Bankruptcy Counsel ------------------------------------------------------ Asmus Electric Incorporated seeks authorization from the U.S. Bankruptcy Court for the District of Connecticut to employ The Law Offices of Neil Crane, LLC as attorneys. The Debtor requires the law firm to: (a) provide legal advice with respect to the powers and duties of the Debtor-in-Possession; (b) represent the Debtor-in-Possession before the Bankruptcy Court at all hearings, and in all matters pertaining to its affairs as Debtor-in-Possession; (c) advise and assist the Debtor-in-Possession in the preparation and negotiation of a Plan of Reorganization with its creditors; (d) prepare all necessary and desirable applications, answers, orders, reports, documents and other legal papers; and (e) perform other legal services for the Debtor-in- Possession, which may be desirable or necessary. The law firm will be paid at these hourly rates: Partners $375 Associates $200-$300 Paralegals $75 The law firm will also be reimbursed for reasonable out-of-pocket expenses incurred. The Law Offices of Neil Crane received a retainer of $15,000 on August 9, 2017, plus $1,717 for costs. Neil Crane, principal of the law firm, assured the Court that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtor and its estate. The law firm can be reached at: Neil Crane, Esq. LAW OFFICES OF NEIL CRANE, LLC 2679 Whitney Avenue Hamden, CT 06518 Tel: (203) 230-2233 E-mail: neilcranecourt@neilcranelaw.com Asmus Electric Incorporated filed a Chapter 11 bankruptcy petition (Bankr. D. Conn. Case No. 17-31220) on August 9, 2017, disclosing under $1 million in both assets and liabilities. The Debtor is represented by the Law Offices of Neil Crane as counsel. BAILEY'S EXPRESS: May Use Bankwell's Cash Collateral Until Sept. 2 ------------------------------------------------------------------ The Hon. Ann M. Nevins of the U.S. Bankruptcy Court for the District of Connecticut has entered a second interim order authorizing Bailey's Express, Inc., to use up to $159,885 in funds that constitute cash collateral of Bankwell Bank. A further hearing on the cash collateral use will be held on Aug. 29, 2017, at 10:00 a.m. The Debtor's authority to spend cash collateral without further order of the Court issued after notice and hearing or the written consent of Bankwell will automatically expire upon the soonest to occur of (i) Sept. 2, 2017, at 5:00 p.m., or (ii) regardless of whether the Debtor has expended the entire amount, the failure by the Debtor to materially comply with any provision of the court order, which failure is not remedied within three business days after receiving written notice from Bankwell or SAIA, Inc. -- which asserts that Debtor is holding certain cash in trust on behalf of SAIA pursuant to the Interline Trust Doctrine -- of the failure. Upon the Termination Date, the Debtor's authority to use or spend any further cash collateral will automatically terminate unless and until the Debtor obtains the written consent of Bankwell and SAIA or a further court order of the Court issued after notice and an opportunity for a hearing. As adequate protection for any cash collateral expended by the Debtor, Bankwell is granted a first lien to secure an amount of Bankwell's prepetition claims equal to (i) the amount of cash collateral actually expended by the Debtor and (ii) an amount equaling the aggregate decline in the value of the Bankwell prepetition collateral (whether as a result of physical deterioration, consumption, use, shrinkage, decline in market value or otherwise). In addition to the Replacement Lien, Bankwell will have a priority claim in an amount equal to the amount of cash collateral actually expended by Debtor, which claim will have the highest administrative priority under Sections 503(b), 507(a)(1) and 507(b) of the U.S. Bankruptcy Code, and the claim will have priority over, and be senior to, all other administrative claims. As adequate protection for any cash collateral expended by the Debtor, SAIA is granted a lien, subordinate to the security interests held by Bankwell, on the DIP collateral, but only to the extent that SAIA successfully establishes that SAIA is entitled to impose an interline trust on cash collected by the Debtor. If Debtor at any time seeks any third-party financing, and in connection with the financing requests that the Court grant or impose liens with a priority equal to or superior to the Bankwell prepetition liens or the Replacement Liens, the Debtor will be required to use the first available proceeds of any financing to repay Bankwell the full amount of any cash collateral expended pursuant to this Order. A copy of the Order is available at: http://bankrupt.com/misc/ctb17-31042-59.pdf About Bailey's Express Headquartered in Middletown, Connecticut, Bailey's Express -- http://www.baileysxpress.com/-- is a Connecticut-based less than truckload carrier. It provides service across the nation and is dedicated in helping Connecticut, Massachusetts and Rhode Island companies market their products throughout the U.S. including Hawaii and Alaska. It has distribution points in Charlotte, Dallas, Denver, Easton, Fontana, Indianapolis, Jacksonville, Memphis, Neenah, Phoenix, Salt Lake City and Toledo. It also provides service to Mexico, Puerto Rico & Canada. Bailey's Express filed for Chapter 11 bankruptcy protection (Bankr. D. Conn. Case No. 17-31042) on July 13, 2017, estimating its assets and liabilities at between $1 million and $10 million. The petition was signed by David Allen, chief financial officer. Judge Ann M. Nevins presides over the case. Elizabeth J. Austin, Esq., and Jessica Grossarth Kennedy, Esq., at Pullman & Comley, LLC, serves as the Debtor's bankruptcy counsel. No creditors' committee has yet been appointed in the case pursuant to Section 1102 of the Bankruptcy Code. BALDWIN PARK: Seeks Permission to Use Cash Collateral ----------------------------------------------------- Baldwin Park Congregate Home, Inc., filed a second motion with the U.S. Bankruptcy Court for the Central District of California, seeking immediate permission to use all cash and cash equivalents on hand and hereafter generated by the Debtor to the extent that the same constitute cash collateral. A hearing on the Debtor's Motion to use cash collateral will be held on Sept. 7, 2017 at 10:00 a.m. The Debtor is striving to change its composition to provide more beds to patients whose expenses are paid by private insurers. According to the Debtor, these patients pay many times over what a patient with a MediCal waiver pays. Consequently, the Debtor claims that it will enable the Debtor to easily fund its plan of reorganization and provide a dividend to its creditors. Moreover, the Debtor tells the Court that it can propose a new value plan should a cash infusion be necessary as its principal, Eileen Cambe, anticipates being able to get such cash infusion to capitalize the Debtor. The Debtor believes that these entities may claim security interest on the Debtor's assets: (a) West Edge Halo, Inc., which asserts a claim of approximately $49,032,843. (b) Internal Revenue Service, which asserts a claim of approximately $135,830. (c) Firmco Medical Inc., which asserts a claim of approximately $31,859. The proposed operating budget provides total expenses of approximately $160,127 for the month of September 2017; $161,669 for the month of October 2017; $165,295 for the month of November 2017; and $163,494 for the month of December 2017. The Budget reflects what the Debtor believes is necessary to fund the ordinary course needs of the Debtor on an average monthly basis until plan confirmation or until the final hearing on the Cash Collateral Motion. As of Aug. 15, 2017, the Debtor had already funded its ongoing expenses but was entitled already to receive $367,244 and had cash in its bank accounts in the amount of $25,129 as of August 16, 2017, after the monthly rent, taxes and the first monthly payroll had cleared already. The Debtor asserts that its recent post-petition operating results and future projections indicate that this trend will continue and improve over the next year, providing ample adequate protection to the Lenders' interests. Moreover, as additional adequate protection, the Debtor proposes following provision in the cash collateral order: (a) The Lenders will receive a replacement lien on post-petition assets, having the same priority, scope and rights under applicable law as the Lenders' respective prepetition lien. (b) The Lenders will receive, through the filing with the Court, monthly operating reports as required by the Office of the U.S. Trustee, which will show cash usage and monthly income statements. A full-text copy of the Debtor's Motion, dated August 17, 2017, is available at https://is.gd/GEEMwF About Baldwin Park Congregate Home Baldwin Park Congregate Home, Inc., owns and operates a skilled nursing facility in Baldwin Park, California. Baldwin Park Congregate Home filed for Chapter 11 bankruptcy protection (Bankr. C.D. Cal. Case No. 17-13634) on March 24, 2017, estimating assets in the range of $0 to $50,000 and liabilities of up to $10 million. Eileen Cambe, the CEO, signed the petition. The Hon. Julia W. Brand presides over the case. The Debtor is represented by Giovanni Orantes, Esq., of Orantes Law Firm. BAY CIRCLE: Sugarloaf Selling Gwinnett Property to Patel for $1.4M ------------------------------------------------------------------ Sugarloaf Centre, LLC, an affiliate of Bay Circle Properties, LLC, et al., asks U.S. Bankruptcy Court for the Northern District of Georgia to authorize the sale of real property which consists of 2.68 acres of vacant land at 1930 Satellite Boulevard, Gwinnett County, Georgia, to Sachin Patel for $1,340,000. SIMBA Global Pty holds a first in priority lien on the Property pursuant to a Deed to Secure Debt, Security Agreement, Assignment Rents and Fixture dated Oct. 28, 2016, executed by the Debtor in favor of SIMBA, recorded at Deed Book 54702, Page 0138, of the Gwinnett County, Georgia records. The Security Deed encumbers additional property of the Debtor and secures repayment a note of $7,500,000, as approved by the Court on Oct 28, 2016. The Debtor seeks authority to sell the Property to the Purchaser, pursuant to the Agreement for the Sale and Purchase of Real Property for a purchase price of $1,340,000 to be all in cash at closing. The sale of the Property will be free and clear claims and encumbrances. The Debtor asks authorization to make disbursements and execute and deliver necessary deeds, affidavits, certificates and other closing documents necessary to consummate sale. It asks authority to pay, in its discretion, the cost to cure objections that may arise, as more fully set in the Agreement. The pertinent terms of the Agreement and the resulting transaction are: a. Payment by the Purchaser of $1,340,000 by wire transfer of federal funds at closing, adjusted by earnest money payment; b. The Debtor will pay real estate transfer taxes, pro-rated ad valorem taxes for the year of closing to the closing date, and the Debtor's attorney's fees. It will not be responsible for any commissions in connection with the proposed sale; c. The Agreement is not contingent on any financing and is a cash offer; d. The Purchaser is paying an earnest money deposit of $50,000; e. The Purchaser has a 60-day inspection period; f. If the Agreement is not approved by the Court within 45 days of execution by the parties, either party may terminate the Agreement. As set forth in the Motion, the Debtor believes that good cause exists to authorize the sale of the Property on the terms prayed for in the Motion. The Debtor proposes that the liens of SIMBA and of any other lienholders, if any, attach to the proceeds of the transaction received by the Debtor, with the same priority and validity that such liens existed on the Property. The Debtor does not require the Property in order to successfully reorganize in bankruptcy. The sale of the Property will allow it to receive the maximum value for the Property. A copy of the Agreement attached to the Motion is available for free at: http://bankrupt.com/misc/Bay_Circle_736_Sales.pdf The Purchaser: Sachin N. Patel 2895 Creekside Dr. NW. Cleveland, TN 37312 E-mail: spatel@ehghotels.com The Debtor can be reached at: SUGARLOAF CENTRE, LLC 5100 Peachtree Industrial Boulevard, Suite 100 Norcross, GA 30071 E-mail: cthakkar@detsystems.net About Bay Circle Properties Bay Circle Properties, LLC, DCT Systems Group, LLC, Sugarloaf Centre, LLC, Nilhan Developers, LLC, and NRCT, LLC, own 16 different real properties including significant undeveloped acreage. The properties also include office/warehouse buildings, retail shopping centers and free standing single tenant buildings. Bay Circle Properties, et al., filed Chapter 11 bankruptcy petitions (Bankr. N.D. Ga. Case Nos. 15-58440 to 15-58444) on May 4, 2015. The Chapter 11 cases are jointly administered. The petitions were signed by Chuck Thakkar, manager. The Debtors estimated $1 million to $10 million in both assets and liabilities. The Debtors tapped John A. Christy, Esq., J. Carole Thompson Hord, Esq., and Jonathan A. Akins, Esq., at Schreeder, Wheeler & Flint, LLP, as bankruptcy attorneys. The Debtors engaged RG Real Estate, Inc. as real estate broker. No trustee has been appointed and the Debtors are operating their businesses as debtors-in-possession. BCC SANDUSKY: Ch.11 Trustee Wants to Use BNY Mellon Cash Collateral ------------------------------------------------------------------- Richard D. Nelson, the duly appointed Chapter 11 Trustee for BCC Sandusky Permanent LLC, seeks authorization from the U.S. Bankruptcy Court for the Northwestern District of Ohio to use cash collateral from Aug. 21 through Oct. 31, 2017 as set forth on the proposed budget. The Debtor is indebted to The Bank of New York Mellon Trust Company National Association (f/k/a The Bank of New York Trust Company, National Association), as Trustee for Morgan Stanley Capital Inc., Commercial Mortgage Pass-Through Certificates, Series 2007 IQ14 in the approximate amount of $24,500,000, secured by an open-end mortgage and security agreement, assignment of leases and rents, as well as interest in substantially all personal property, tangible and intangible, pursuant to a financing statement The Trustee proposes to use cash collateral to meet the postpetition obligations as set forth in the attached Budget, including but not limited to the expenses related to the maintenance of the Property, adequate protection payments to the Bank of New York Mellon, payment of administrative expenses, and other necessary costs and expenses incurred during the pendency of the bankruptcy case such as professional fee carve-outs agreed upon with the Bank of New York Mellon. In consideration for the Trustee's use of cash collateral and as adequate protection for any diminution in the value of the Bank of New York Mellon's interest in the cash collateral, the Trustee proposes to grant the Bank of New York Mellon a replacement lien on the cash collateral of the same type, to the same extent and of the same description as their prepetition collateral as of the Petition Date as well as a monthly payment of excess cash collateral as more fully set forth in the Budget. As further adequate protection, the Trustee will continue to ensure proper insurance coverage on the Property, pay appropriate taxes and account for all cash use. A full-text copy of the Trustee's Motion, dated Aug. 17, 2017, is available at https://is.gd/Oqzunq Chapter 11 Trustee is represented by: Donald W. Mallory, Esq. Richard D. Nelson, Esq. Cohen, Todd, Kite & Stanford, LLC 250 East Fifth Street, Suite 2350 Cincinnati, Ohio 45202 Tel: (513) 333-5255 Fax: (513) 241-4490 E-mail: dmallory@ctks.com ricknelson@ctks.com About BCC Sandusky Permanent Based in Cincinnati, Ohio, BCC Sandusky Permanent LLC's business operation involves the lease of the structures and land on its real property known as the Crossings of Sandusky to the various retail-business establishments, which operate from the property. BCC Sandusky sought protection under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Ohio Case No. 17-30905) on March 30, 2017. The petition was signed by George W. Fels, co-manager. At the time of the filing, the Debtor estimated its assets and debt at $10 million to $50 million. The Chapter 11 case is assigned to Judge Mary Ann Whipple. The Debtor is represented by Steven L. Diller, Esq. and Eric R. Neumann, Esq., at Diller and Rice, LLC, and Raymond L. Beebe, Esq. at Raymond L. Beebe Co. On April 7, 2017, the Bankruptcy Court appointed NAI Daus as receiver for BCC Sandusky Permanent. The receiver hired Frost Brown Todd LLC as counsel. On July 14, 2017, by order of the Court, Richard D. Nelson was appointed as Chapter 11 Trustee for the Debtor. BEACON ROOFING: Moody's Puts B1 CFR Under Review for Downgrade -------------------------------------------------------------- Moody's Investors Service placed Beacon Roofing Supply, Inc.'s ratings under review for downgrade, including its B1 Corporate Family Rating, B1-PD Probability of Default Rating, B2 rating assigned to its senior secured term loan and B3 rating assigned to its senior unsecured notes. The review follows the company's announcement that it is acquiring Allied Building Products Corp. ("Allied") for $2.625 billion, a national distributor of exterior and interior products, from CRH plc, a global diversified building materials group. Beacon indicated that Allied expands its geographic presence in new markets, particularly in New York, New Jersey, and upper Midwest, and gives Beacon new products including wallboard and suspended ceiling systems. The SGL-2 Speculative Grade Liquidity Rating remains unchanged at this time. Beacon recently announced that it is acquiring Allied, with revenues of about $2.6 billion, in an all-cash transaction for approximately $2.625 billion. Cash for the transaction will come from $2.2 billion of new debt and balance from $500 million of convertible preferred equity provided by an affiliate of Clayton, Dubilier & Rice ("CD&R). Beacon's pro forma capital structure at 09/30/17 will consist of a $1.3 billion senior secured asset-based revolving credit facility, of which about $670 million will be outstanding and up to $382 million may be utilized for the acquisition of Allied, a $970 million senior secured term loan of which $440 million will be used to repay the company's existing term loan, and $1.6 billion senior unsecured notes, increased from current amount of $300 million. On Review for Downgrade: Issuer: Beacon Roofing Supply, Inc. -- Probability of Default Rating, Placed on Review for Downgrade, currently B1-PD -- Corporate Family Rating, Placed on Review for Downgrade, currently B1 -- Senior Secured Bank Credit Facility, Placed on Review for Downgrade, currently B2(LGD4) -- Senior Unsecured Regular Bond/Debenture, Placed on Review for Downgrade, currently B3(LGD5) Outlook Actions: Issuer: Beacon Roofing Supply, Inc. -- Outlook, Changed To Rating Under Review From Stable RATINGS RATIONALE Moody's review will focus on Beacon's strategic position, financial and liquidity profile, and integration risks following the proposed acquisition. Balance sheet debt is increasing by about $2 billion to $3.2 billion, but earnings are rising as well. Moody's estimates pro forma adjusted debt-to-EBITDA will exceed 6.0x, worsening from 3.9x at 06/30/17, and exceeding Moody's downgrades triggers. Additional adjustments including combined lease burdens and cost synergies will be analyzed during the review. Although Moody's recognizes the strength of the combined entity's main revenue driver, domestic repair and remodeling, the large amount of debt being utilized for the acquisition is a credit risk. Integration risks that could delay realization of anticipated cost synergies will also be considered during Moody's reviews. A downgrade could result if the review indicates that Beacon's operating performance and resulting key debt credit metrics remain indicative of lower ratings such as adjusted debt-to-EBITDA remaining above 5.0x over the next 12 to 18 months. Confirmation of ratings could ensue if Moody's analysis shows Beacon able to generate earnings and resulting free cash flow that restore key debt credit metrics such as adjusted leverage approaching 4.5x over Moody's time horizon. The principal methodology used in these ratings was Distribution & Supply Chain Services Industry published in December 2015. Beacon Roofing Supply, Inc., headquartered in Herndon, VA, upon closing the acquisition of Allied Building Products Corp., will be one of the largest North American building materials distributors of roofing supplies and other exterior products, and interior products such as wallboard and suspended ceiling systems. Pro forma revenues for the 12 months through June 30, 2017 totaled approximately $6.8 billion. BEAR METAL: Wants to Use Cash Collateral Until Sept. 15 ------------------------------------------------------- Bear Metal Welding & Fabrication, Inc., seeks permission from the U.S. Bankruptcy Court for the Northern District of Illinois to use case collateral of QCB Properties, LLC, the U.S. Department of the Treasury-Internal Revenue Service, the Illinois Department of Revenue, and the Illinois Department of Employment Security through Sept. 15, 2017. QCB is the successor in interest to Fifth Third Bank pursuant to a Loan Purchase and Assumption Agreement between QCB and Fifth Third Bank dated as of July 20, 2016. The IRS holds claims against Bear Metal for unpaid payroll taxes assessed in 2013 and 2014. It filed two notices of federal tax lien with the Illinois Secretary of State. The IDR filed with the DuPage County Recorder a notice of tax lien related to unpaid withholding income taxes in the amount of $7,592.35 on Nov. 24, 2014, as document R2014-110527. The IDES filed a notice of lien for contributions under the Illinois Employment Insurance Act totaling, with penalties and interest, $8,639.38, with the Cook County Recorded on April 10, 2015, as document R2015-037018. The Debtor's business operations were seriously adversely affected due to Dean Mormino's injury in January 2017. He was not able to attend to his business on a full time basis for approximately 5 months. The Debtor believes that its business can be operated profitably. The Debtor also believes that the market value of the Property and the going concern value of the business significantly exceed the amount of all the claims held by the Secured Parties. The Debtor is currently engaged in active business operations. It has three full time employees and one part time employee. It also hires occasional workers on an as needed basis. It currently is working on 9 work orders. Based on its history of operations, it expects to receive additional work orders and "walk-in" business during the period of its proposed use of cash collateral. In order to continue its business operations, the Debtor must pay salaries, insurance premiums, vehicle expenses, utilities, and purchase materials used in providing its services. The Debtor has attached its proposed budget for use of cash collateral during the period Aug. 15 to Sept.15, 2017, which sets forth its projected receipts and its necessary expenses for that period. The Debtor markets its business through recommendations and referrals from past customers and internet marketing. It typically receives both written work orders based upon this marketing and also services "walk-in" customers. The Debtor says that if it is not permitted to use cash collateral, it will suffer harm that is both immediate and irreparable. It will have to stop performing work under the work orders now in place; it will have to lay off its employees; it will not be able to continue its internet marketing; and it will not be able to pay for the maintenance and upkeep of the property. The Debtor warns that if the business has to cease operations, the inevitable result will be the inability to successfully reorganize under Chapter 11 and, ultimately, a foreclosure sale of the property and a complete shutdown of its business. All of the market value of the property and the going concerning value of the business that could be realized through reorganization or sale in a successful Chapter 11 would be lost. As adequate protection to the Secured Parties for Debtor's proposed use of cash collateral, the Debtor proposes to grant to each of the Secured Parties a valid, perfected enforceable lien upon the Debtor's post-petition assets that are now or later become property of the Debtor's estate, to the extent and with the priority of their respective pre-petition liens, but only if those liens are valid. A copy of the Motion is available at: http://bankrupt.com/misc/ilnb17-24246-5.pdf About Bear Metal Welding Headquartered in Lombard, Illinois, Bear Metal Welding & Fabrication, Inc., has been in business since 1997. Bear Metal is in the business of providing fabrication and repair of metals to commercial and consumer markets. Bear Metal's principal asset is the improved real estate from which it operates at 948 North Ridge Avenue, Lombard, Illinois, with the property valued at $450,000. Dean Mormino has been Bear Metal's principal officer at all times since the Company began business operations. Mr. Mormino has been the sole shareholder, director and the president since 2012 when his marriage to Melisa Mormino was dissolved. Prior to the dissolution of their marriage, Melisa Mormino was a shareholder of Bear Metal. Bear Metal filed for Chapter 11 bankruptcy protection (Bankr. N.D. Ill. Case No. 17-24246) on Aug. 14, 2017, estimating up to $50,000 in assets and between $500,001 and $1 million in liabilities. Abraham Brustein, Esq., at Dimonte & Lizak, LLC, serves as the Debtor's bankruptcy counsel. BIOSTAGE INC: May Issue 8.1M Common & 516 Pref. Shares to Pecos --------------------------------------------------------------- As previously disclosed by Biostage, Inc. in its Current Report on Form 8-K filed with the Securities and Exchange Commission on June 27, 2017, Biostage, Inc. entered into a binding Memorandum of Understanding with First Pecos, LLC, pursuant to which the Company was bound to issue to Pecos in a private placement for aggregate gross proceeds of $3,055,500, 9,700,000 shares of its common stock at a purchase price of $0.315 per share or, to the extent the Investor, following the transaction, would own more than 19.99% of the Company's common stock, shares of a new class of preferred stock of the Company with a per-share purchase price of $1,000. Additionally, in accordance with the binding MOU, the Investor would receive a warrant to purchase 9,700,000 shares of the Company's common stock. To further evidence the binding obligations of the MOU and effectuate the Private Placement thereunder, the Company entered into a Securities Purchase Agreement effective as of Aug. 11, 2017, with the Investor. In accordance with the MOU and the Purchase Agreement, the Company will issue to the Investor (i) based on the impact of the ownership cap, 8,061,905 shares of the Company's common stock, par value $0.01 per share, and 516 shares of Series C Convertible Preferred Stock. The Warrant will have an exercise price of $0.315 per share, subject to adjustments as provided under the terms of the Warrant, and will not be exercisable until six months after the Private Placement. The Warrant will be exercisable for five years from the issuance date. The Preferred Stock will bear a cumulative annual dividend of 15%, compounding daily, and will be senior to all of the Company's other common stock, but will generally not have any voting rights. The Preferred Stock will include an ownership limitation that will limit the Investor and its affiliates to owning no more than 19.99% of the Company's common stock. Following approval by the Company's stockholders, the Series C Preferred will automatically convert into shares of the Common Stock. The Company agreed to include a proposal for such stockholder approval in the definitive proxy statement for its 2018 annual meeting of stockholders and, if not approved at such meeting, will seek approval from its stockholders every six months thereafter. In connection with the Private Placement, the Investor agreed to serve as a backstopping party with respect to up to two pro rata rights offerings with aggregate gross proceeds of up to $14.0 million that the Company may elect to conduct within 24 months following the Private Placement. Additionally, the Company has agreed to grant board representation and nomination rights to the Investor that will be proportional to the percentage of the Company's common stock owned by the Investor and its affiliates. The Purchase Agreement and Warrant each include customary representations, warranties and covenants. The Company also agreed to file a resale registration statement promptly after the Private Placement to register the resale of the shares of common stock issued in the Private Placement. About Biostage Biostage, Inc., formerly Harvard Apparatus Regenerative Technology, Inc. -- http://www.biostage.com/-- is a biotechnology company developing bioengineered organ implants based on the Company's new Cellframe technology which combines a proprietary biocompatible scaffold with a patient's own stem cells to create Cellspan organ implants. Cellspan implants are being developed to treat life-threatening conditions of the esophagus, bronchus or trachea with the hope of dramatically improving the treatment paradigm for patients. Based on its preclinical data, Biostage has selected life-threatening conditions of the esophagus as the initial clinical application of its technology. Biostage reported a net loss of $11.57 million on $82,000 of revenues for the year ended Dec. 31, 2016, compared to a net loss of $11.70 million on $118,000 of revenues for the year ended Dec. 31, 2015. As of June 30, 2017, Biostage had $4.65 million in total assets, $3.37 million in total liabilities and $1.28 million in total stockholders' equity. KPMG LLP, in Cambridge, Massachusetts, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2016, citing that the Company has suffered recurring losses from operations and will require additional financing to fund future operations which raise substantial doubt about its ability to continue as a going concern. BRIGHT MOUNTAIN: Reports $874,000 Net Loss for Second Quarter ------------------------------------------------------------- Bright Mountain Media, Inc. filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $873,933 on $666,821 of total revenues for the three months ended June 30, 2017, compared to a net loss of $531,907 on $459,170 of total revenues for the three months ended June 30, 2016. For the six months ended June 30, 2017, the Company reported a net loss of $1.55 million on $1.32 million of total revenues compared to a net loss of $1.18 million on $883,585 of total revenues for the six months ended June 30, 2016. As of June 30, 2017, Bright Mountain had $2.51 million in total assets, $1.87 million in total liabilities and $634,972 in total shareholders' equity. As of June 30, 2017 the Company had a balance of cash and cash equivalents of $101,029 and working capital of $197,418 as compared to cash and cash equivalents of $162,795 and working capital of $355,344 at Dec. 31, 2016. Its current assets decreased 13.2% at June 30, 2017, from Dec. 31, 2016, which reflects the decrease in cash, accounts receivable, prepaid expenses and inventories. The Company's current liabilities decreased 2.2% at June 30, 2017, from Dec. 31, 2016, which primarily reflects a decreases in accounts payable and premium finance loan payable, offset by increases in accrued interest, including to a related party, and deferred rent. The Company does not have any external sources of liquidity and are dependent upon loans from its chief executive officer. In addition to the amounts owed Mr. Speyer, in November 2016 the Company borrowed $500,000 from an unrelated third party under a promissory note which matures in November 2017. Its operations does not provide sufficient cash to pay our cash operating expenses. "If we are unable to increase our revenues to a level which provides sufficient funds to pay our operating expenses without relying upon loans from a related party, as well as to pay our obligations as they become due, our ability to continue to leverage our resources and implement our plans for continued growth are in jeopardy," the Company said in the report. Net cash flows used in operating activities totaled $948,512 and $911,503 for the six month periods ending June 30, 2017, and 2016, respectively. During the six months ended June 30, 2017, the Company used cash primarily to fund our net loss of $1,557,180 for the period as well as an increases in accrued interest, including to a related party. Cash used during the six months ended June 30, 2016, was primarily attributable to operational losses during the period. Net cash flows used in investing activities totaled $14,035 and $136,858 for the first six months of 2017 and 2016, respectively. Cash used included the purchase of fixed assets in 2017 and 2016 and in 2016, $131,237 attributable to the purchase of two websites. Net cash flows provided from financing activities totaled $901,051 and $748,663 during the six month periods ending June 30, 2017, and 2016, respectively. During the first six months of 2017, the Company received $950,000 under a series of 6% and 12% 5 year convertible notes issued to its chief executive officer. This figure was reduced by the repayments of $48,949 in insurance premium financing notes. During the first six months of 2016, the Company sold $500,000 in debt and issued $300,000 in 12%, five year convertible notes issued to itsr chief executive officer. This figure was reduced by the repayments of $51,337 in insurance premium financing notes. A full-text copy of the Form 10-Q is available for free at: https://is.gd/FnRkpo About Bright Mountain Based in Boca Raton, Fla., Bright Mountain Media, Inc., a media holding company, owns and manages Websites in the United States. It operates through two segments, Product Sales and Services. The company develops Websites, which provide information and news to military, law enforcement, first responders, and other public sector employees; and information, including originally written news content, blogs, forums, career information, and videos. Bright Mountain reported a net loss attributable to common shareholders of $2.94 million on $1.49 million of product sales for the year ended Dec. 31, 2016, compared to a net loss attributable to common shareholders of $2.01 million on $1.41 million of product sales for the year ended Dec. 31, 2015. Liggett & Webb, P.A., in Boynton Beach, Florida, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2016, citing that the Company has a net loss of $2,667,051 and used cash in operations of $1,860,515 and an accumulated deficit of $8,824,806 at Dec. 31, 2016. These matters raise substantial doubt about the Company's ability to continue as a going concern. BULOVA TECHNOLOGIES: Incurs $3.77 Million Net Loss in 3rd Quarter ----------------------------------------------------------------- Bulova Technologies Group, Inc., filed with the Securities and Exchange Commission its quarterly report on Form 10-Q reporting a net loss of $3.77 million on $6.34 million of revenues for the three months ended June 30, 2017, compared to a net loss of $1.25 million on $6.80 million of revenues for the three months ended June 30, 2016. For the nine months ended June 30, 2017, Bulova reported net income of $3.02 million on $18.99 million of revenues compared to a net loss of $5.02 million on $12.20 million of revenues for the same period a year ago. As of June 30, 2017, Bulova had $17.90 million in total assets, $40.65 million in total liabilities and a total shareholders' deficit of $22.75 million. As of June 30, 2017, the Company's sources of liquidity consisted of new debt as well as new sales reported in the commercial sales and service business segment along with the new sales in the transportation segment of the business. As of June 30, 2017, the Company had $140,628 in cash and cash equivalents. Cash flows used in operating activities was $2,357,759 for the nine months ended June 30, 2017. Cash flows provided by in investing activities was $457,387 for the nine months ended June 30, 2017. Cash flows provided by financing activities were $1,390,738 for the nine months ended June 30, 2017. The Company's ability to cover its operating and capital expenses, and make required debt service payments will depend primarily on its ability to generate operating cash flows. The Company said it is actively negotiating significant discounts on debt through an exchange of debt for both preferred A and B shares as well as negotiated settlements for early payoffs resulting in significant debt reductions and future interest savings. While its current lenders continue to support the progress of the Company, the Company is exploring consolidation of its debt. Management's goal is to discontinue or sell all business units other than the transportation group by year-end, thereby significantly reducing cost and reducing debt. This will not only reduce costs, but it will allow management to focus exclusively on building the transportation sector. Along with and similar to its recent acquisition of Big Red, the Company intends to continue to pursue additional acquisitions that add strategic synergies for its current hubs and customer base. The Company is also exploring strategic locations in the Northeast for its cold storage facility of approximately 150,000 square feet. These actions along with acquisitions made will allow for significant growth of sales and a return to profitability. Management remains confident in its position in the transportation sector and believes we will continue to gain market share due to its recent acquisitions. "If we are unable to generate sufficient cash flow from operations to service our debt, we may be required to reduce costs and expenses, sell assets, reduce capital expenditures, refinance all or a portion of our existing debt as well as our operating needs, or obtain additional financing and we may not be able to do so on a timely basis, on satisfactory terms, or at all. Our ability to make scheduled principal payments or to pay interest on or to refinance our indebtedness depends on our future performance and financial results, which, to a certain extent, are subject to general economic, political, financial, competitive, legislative and regulatory factors beyond our control," the Company stated in the report. "While the Company believes that anticipated revenues resulting from its expanded efforts relative to its transportation and commercial sales segments will be sufficient to bring profitability and a positive cash flow to the Company, it is uncertain that these results can be achieved. Accordingly, the Company will, in all likelihood have to raise additional capital to operate. There can be no assurance that such capital will be available when needed, or that it will be available on satisfactory terms." A full-text copy of the Form 10-Q is available for free at: https://is.gd/DHylu0 About Bulova Bulova Technologies Group, Inc., was originally incorporated in Wyoming in 1979 as "Tyrex Oil Company". During 2007, the Company divested itself of all assets and previous operations. During 2008, the Company filed for domestication to the State of Florida, and changed its name to Bulova Technologies Group, Inc., and changed its fiscal year from June 30 to Sept. 30. Bulova reported a net loss attributable to the Company of $8.06 million on $18.72 million of revenues for the year ended Sept. 30, 2016, compared to a net loss attributable to the Company of $5.44 million on $1.75 million of revenues for the year ended Sept. 30, 2015. Stevenson & Company CPAS LLC, in Tampa, Florida, issued a "going concern" qualification on the consolidated financial statements for the year ended Sept. 30, 2016, noting that the Company has significant net losses and cash flow deficiencies. Those conditions raise substantial doubt about the Company's ability to continue as a going concern. BURGESS MACHINERY: Plan Filing Deadline Extended Until Dec. 21 -------------------------------------------------------------- Judge James M. Carr of the U.S. Bankruptcy Court for the Southern District of Indiana extended to December 21, 2017, the exclusivity period for Burgess Machinery, LLC to file a Disclosure Statement and Plan of Reorganization. As reported by the Troubled Company Reporter on July 25, 2017, the Debtor asked the Court for an additional 120 days in order to make the necessary changes to its business operation to submit a disclosure statement and plan of reorganization. The Debtor assured the Court that the interests of all parties would best served by allowing the Debtor an extension of time within which to file the plan and disclosure statement, as well as an extension of time for the exclusivity period so as to be able to submit a feasible plan of reorganization. About Burgess Machinery Headquartered in Indianapolis, Indiana, Burgess Machinery, LLC, owns and operates its business as a heavy equipment servicer, heavy equipment rentals, parts and sales. In addition, Burgess provides shop and field service on most construction equipment as well as material handlers. The Debtor filed for Chapter 11 bankruptcy protection (Bankr. S.D. Ind. Case No. 17-01019) on Feb. 24, 2017, estimating its assets at between $1 million and $10 million. Judge James M. Carr presides over the case. The petition was signed by Doyle Burgess, owner/managing member. David R. Krebs, Esq., at Hester Baker Krebs LLC serves as the Debtor's bankruptcy counsel. CAR CHARGING: Incurs $5.20 Million Net Loss in Second Quarter ------------------------------------------------------------- Car Charging Group, Inc., filed with the Securities and Exchange Commission its quarterly report on Form 10-Q reporting a net loss attributable to common shareholders of $5.20 million on $532,974 of total revenues for the three months ended June 30, 2017, compared to a net loss attributable to common shareholders of $2.71 million on $868,024 of total revenues for the three months ended June 30, 2016. For the six months ended June 30, 2017, the Company reported a net loss attributable to common shareholders of $9.05 million on $1.12 million of total revenues compared to a net loss attributable to common shareholders of $7.43 million on $1.71 million of total revenues for the same period during the prior year. As of June 30, 2017, Car Charging had $1.97 million in total assets, $20.77 million in total liabilities, $825,000 in series B convertible preferred stock, and a total stockholders' deficiency of $19.62 million. During the six months ended June 30, 2017, the Company financed its activities from proceeds derived from debt and equity financing. A significant portion of the funds raised from the sale of capital stock have been used to cover working capital needs and personnel, office expenses and various consulting and professional fees. For the six months ended June 30, 2017, and 2016, the Company used cash of $1,556,018 and $1,434,505, respectively, in operations. The Company's cash use for the six months ended June 30, 2017, was primarily attributable to its net loss of $7,513,899, adjusted for net non-cash expenses in the aggregate amount of $4,172,923, partially offset by $1,784,958 of net cash provided by changes in the levels of operating assets and liabilities. Its cash used in operating activities for the six months ended June 30, 2016, was primarily attributable to its net loss of $6,746,768, adjusted for non-cash expenses in the aggregate amount of $4,123,786, partially offset by $1,188,477 of net cash provided by changes in the levels of operating assets and liabilities. During the six months ended June 30, 2017, cash used in investing activities was $206, which was used to purchase charger cables. Net cash used in investing activities was $58,669 during the six months ended June 30, 2016, which was used to purchase office and computer equipment. Net cash provided by financing activities for the six months ended June 30, 2017, was $1,550,910, of which, $1,597,667 was provided in connection with the issuance of various forms of notes payable and $84,144 provided from bank overdrafts, partially offset by the payment of $38,263 of associated with future offering costs and $87,823 of debt issuance costs as well as the repayment of notes payable of $4,815. Cash provided by financing activities for the six months ended June 30, 2016 was $1,487,710, of which, $1,314,620 of net proceeds (gross proceeds of $1,367,120 less issuance costs of $52,500) were from the sale of Series C Convertible Preferred Stock and warrants, $200,000 was provided in connection with proceeds from the issuance of convertible notes to a related party, partially offset by the repayment of notes payable of $26,910. "We expect that through the next 12 months from the date of this filing, we will require external funding to sustain operations and to follow through on the execution of our business plan. There can be no assurance that our plans will materialize and/or that we will be successful in our efforts to obtain the funding to cover working capital shortfalls. Given these conditions, there is substantial doubt about our ability to continue as a going concern and our future is contingent upon our ability to secure the levels of debt or equity capital we need to meet our cash requirements. In addition, our ability to continue as a going concern must be considered in light of the problems, expenses and complications frequently encountered by entrants into established markets, the competitive environment in which we operate and the current capital raising environment. "Since inception, our operations have primarily been funded through proceeds from equity and debt financings. Although management believes that we have access to capital resources, there are currently no commitments in place for new financing at this time, except as described above under the heading Recent Developments, and there is no assurance that we will be able to obtain funds on commercially acceptable terms, if at all. "We intend to raise additional funds during the next twelve months. The additional capital raised would be used to fund our operations. The current level of cash and operating margins is insufficient to cover our existing fixed and variable obligations, so increased revenue performance and the addition of capital through issuances of securities are critical to our success. Should we not be able to raise additional debt or equity capital through a private placement or some other financing source, we would take one or more of the following actions to conserve cash: further reductions in employee headcount, reduction in base salaries to senior executives and employees, and other cost reduction measures. Assuming that we are successful in our growth plans and development efforts, we believe that we will be able to raise additional debt or equity capital. There is no guarantee that we will be able to raise such additional funds on acceptable terms, if at all." Through June 30, 2017, the Company incurred an accumulated deficit since inception of $88,585,681. As of June 30, 2017, the Company had a cash balance and working capital deficit of $584 and $19,610,301, respectively. During the six months ended June 30, 2017, the Company incurred a net loss of $7,513,899. A full-text copy of the Form 10-Q is available for free at: https://is.gd/rwlCPT About Car Charging Miami Beach, Florida-based Car Charging Group, Inc. -- http://www.CarCharging.com/-- is an owner, operator, and provider of electric vehicle charging equipment and networked EV charging services. The Company offers both residential and commercial EV charging equipment, enabling EV drivers to easily recharge at various location types. Car Charging reported a net loss attributable to common shareholders of $9.16 million on $3.32 million of total revenues for the year ended Dec. 31, 2016, compared with a net loss attributable to common shareholders of $9.58 million on $3.95 million of total revenue for the year ended Dec. 31, 2015. Marcum LLP, in New York, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2016, citing that the Company has incurred net losses since inception and needs to raise additional funds to meet its obligations and sustain its operations. These conditions raise substantial doubt about the Company's ability to continue as a going concern. CASHMAN EQUIPMENT: May Use Cash Collateral Through Aug. 31 ---------------------------------------------------------- The Hon. Melvin S. Hoffman of the U.S. Bankruptcy Court for the District of Massachusetts has authorized Cashman Equipment Corporation to use through and including Aug. 31, 2017, the cash collateral of (i) U.S. Secretary of Transportation acting through the U.S. Maritime Administration; (ii) Rockland Trust Company; (iii) Santander Bank, N.A.; (iv) Wells Fargo, N.A.; (v) Citizens Asset Finance, Inc.; (vi) Banc of America Leasing and Capital, LLC; (vii) U.S. Bank National Association acting through its division U.S. Bank Equipment Finance; (viii) KeyBank N. A.; (ix) Fifth Third Bank; (x) Radius Bank; (xi) Pacific Western Bank; and (xii) Equitable Bank. A continued hearing on the Debtors' request for entry of an interim order on the use of cash collateral is scheduled for Aug. 30, 2017, at 10:00 a.m. (prevailing Eastern Time). Objections to the cash collateral use must be filed by no later than Aug. 25, 2017, at 4:30 p.m. (prevailing Eastern Time). As adequate protection to the Lenders for the Debtors' use of cash collateral, each Lender is granted a replacement lien on the same type of postpetition property of the Debtors' estates against which the Lender held a lien as of the Petition Date. Primary Replacement Liens will maintain the same priority, validity and enforceability as the Lenders' respective prepetition liens. To the extent that the diminution of any Lender's interest in cash collateral after the Petition Date exceeds the value of the Lender's primary replacement lien, the Lender is granted a lien on cash collateral junior to (a) existing liens as of the Petition Date, (b) Replacement Liens granted pursuant to the First Interim Order, (c) Primary Replacement Liens granted pursuant to the Second Interim Order and (d) Primary Replacement Liens granted. A copy of the Order is available at: http://bankrupt.com/misc/mab17-12205-326.pdf About Cashman Equipment Corp. Headquartered in Boston, Massachusetts, Cashman Equipment Corp. -- http://4barges.com/-- was founded in 1995 as a barge rental and marine contracting company with a fleet of 10 barges, 9 of which were built in the 1950s and 1960s. Cashman Equipment and certain of its affiliates and subsidiaries own, operate, rent, and sell a fleet of vessels, including inland and ocean barges, marine accommodation barges, specialized oil spill recovery barges, and tugs, as well as marine equipment, such as cranes, accommodation units, and marine pollution skimmers. Cashman Equipment and certain of its affiliates and subsidiaries, Cashman Scrap & Salvage, LLC, Servicio Marina Superior, LLC, Mystic Adventure Sails, LLC, and Cashman Canada, Inc., filed bare-bones Chapter 11 petitions (Bankr. D. Mass. Lead Case No. 17-12205) on June 9, 2017. The petitions were signed by James M. Cashman, the Debtors' president. Mr. Cashman also commenced his own Chapter 11 case (Bankr. D. Mass. Case No. 17-12204). The cases are jointly administered. Cashman Equipment estimated its assets and debt at between $100 million and $500 million. Judge Melvin S. Hoffman presides over the cases. Harold B. Murphy, Esq., and Michael K. O'Neil, Esq., at Murphy & King, Professional Corporation, serve as Cashman Equipment, et al.'s counsel. Jeffrey D. Sternklar, Esq., at Jeffrey D. Sternklar LLC, serves as Mr. Cashman's counsel, according to Mr. Cashman's petition. An official committee of unsecured creditors has been appointed in the case and is represented by Michael J. Fencer, Esq., and John T. Morrier, Esq., at Casner & Edwards, LLP. CBAK ENERGY: Incurs $3.75 Million Net Loss in Second Quarter ------------------------------------------------------------ CBAK Energy Technology, Inc., filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of US$3.75 million on US$6.33 million of net revenues for the three months ended June 30, 2017, compared to a net loss of US$2.66 million on US$1.36 million of net revenues for the three months ended June 30, 2016. For the six months ended June 30, 2017, CBAK Energy reported a net loss of US$5.82 million on US$10.05 million of net revenues compared to a net loss of US$4.57 million on US$4.56 million of net revenues for the same period during the prior year. The Company's balance sheet at June 30, 2017, showed US$103.97 million in total assets, US$86.68 million in total liabilities and US$17.29 million in total shareholders' equity. The Company has financed its liquidity requirements from short-term bank loans and bills payable under bank credit agreements and issuance of capital stock. As of June 30, 2017, CBAK Energy had cash and cash equivalents of $2.0 million. Its total current assets were $40.5 million and its total current liabilities were $56.8 million, resulting in a net working capital deficiency of $16.3 million. These factors raise substantial doubts about our ability to continue as a going concern. In June 2016, the Company received advances in the aggregate of $2.9 million from Mr. Jiping Zhou and Mr. Dawei Li. These advances were unsecured, non-interest bearing and repayable on demand. On July 8, 2016, the Company received further advances of $2.6 million from Mr. Jiping Zhou. On July 28, 2016, to convert these advances into equity interests in our Company, the Company entered into securities purchase agreements with Mr. Jiping Zhou and Mr. Dawei Li to issue and sell an aggregate of 2,206,640 shares of its common stock, at $2.5 per share, for an aggregate consideration of approximately $5.52 million. On Aug. 17, 2016, the Company issued these shares to the investors. "We are currently expanding our product lines and manufacturing capacity in our Dalian plant, which require more funding to finance the expansion," the Company stated in the filing. "We may also require additional cash due to changing business conditions or other future developments, including any investments or acquisitions we may decide to pursue. We plan to renew these loans upon maturity, if required, and plan to raise additional funds through bank borrowings and equity financing in the future to meet our daily cash demands, if required. However, there can be no assurance that we will be successful in obtaining this financing. If our existing cash and bank borrowing are insufficient to meet our requirements, we may seek to sell equity securities, debt securities or borrow from lending institutions. We can make no assurance that financing will be available in the amounts we need or on terms acceptable to us, if at all. The sale of equity securities, including convertible debt securities, would dilute the interests of our current shareholders. The incurrence of debt would divert cash for working capital and capital expenditures to service debt obligations and could result in operating and financial covenants that restrict our operations and our ability to pay dividends to our shareholders. If we are unable to obtain additional equity or debt financing as required, our business operations and prospects may suffer." A full-text copy of the Form 10-Q is available for free at: https://is.gd/r00sEt About CBAK Energy Dalian, China-based CBAK Energy Technology, Inc., formerly China BAK Battery, Inc., incorporated on Oct. 4, 1999, is a holding company. The Company and its subsidiaries are principally engaged in the manufacture, commercialization and distribution of a range of standard and customized lithium ion (Li-ion) rechargeable batteries for use in an array of applications. The Company's products are sold to packing plants operated by third parties primarily for use in mobile phones and other electronic devices. The Company conducts its manufacturing activities in China. China Bank is the first China-based lithium battery company listed in the U.S., in January 2005 (NASDAQ: CBAK). The Company's subsidiaries include China BAK Asia Holdings Limited (BAK Asia), Dalian BAK Trading Co., Ltd. (Dalian BAK Trading), and Dalian BAK Power Battery Co., Ltd. (Dalian BAK Power). Dalian BAK Trading focuses on the wholesale of lithium batteries and lithium batteries' materials, import and export business, and related technology consulting services. Dalian BAK Power focuses on the development and manufacture of high-power lithium batteries. China BAK reported a net loss of US$12.65 million for the year ended Sept. 30, 2016, following net profit of $15.87 million for the year ended Sept. 30, 2015. Centurion ZD CPA Limited, in Hong Kong, China, issued a "going concern" qualification on the consolidated financial statements for the year ended Sept. 30, 2016, stating that the Company has a working capital deficiency, accumulated deficit from recurring net losses and significant short-term debt obligations maturing in less than one year as of Sept. 30, 2016. All these factors raise substantial doubt about its ability to continue as a going concern. CHARIOTS OF PALM: Seeks to Use Cash to Pay Off Expenses ------------------------------------------------------- Chariots of Palm Beach, Inc., and H&S, Inc., seek authority from the U.S. Bankruptcy Court for the Southern District of Florida to use certain cash collateral which is presently subject to several alleged security interests. The Debtors intend to sell the business and the real property they owned as an ongoing business concern in a short period of time. Preliminary indications, from blind ads run by the proposed Chief Restructuring Officer, Michael Phelan, indicate the possibility of a substantial sales price for the ongoing business concern and underlying real property. However, the Debtors tell that Court that in order to sell as an ongoing business concern over the next 90 to 120 days, it is imperative that the DIP be permitted to continue to sell the high-end automobiles currently on-hand at the dealership. The monies from these sales are being deposited with the proposed CRO and will be needed to fund the continuing operations of the business with the ultimate goal of maximizing the return to the unsecured creditors in this case. Specifically, the Debtors intend to use the cash collateral monies being held by their proposed CRO. The Debtors believe that if they are allowed to use the cash collateral, they will be able to maintain their business operations during these Chapter 11 proceedings and will be successful in selling as an ongoing business concern under a liquidating plan. The Debtors relate that through their prior President and CEO, Hugh Bate, they entered into agreements with both institutional and private Lenders who would advance funds based on the value of each automobile acquired by the dealership. These Lenders are: Anchor Bank; Alan and Susan Gilison; Flagler Bank; Legacy Bank of Florida; NextGear Capital, Inc.; North Florida Mango Credit, LLC; Robert Berens; Sanford Berens; LQD Business Finance, LLC; and Alexander P. and Winifred Aranyos. The arrangements are such that upon sale of each vehicle, the funds are to be repaid to the creditor that loaned on a particular vehicle the full amount advanced plus interest. Ostensibly, each Lender will allege a lien on some or all of the Debtors' assets, including, its cash and other manifestations of ready funds. The Debtors require cash collateral for the payment of, inter alia, operating expenses and the payment of their vendors. The Debtors also require the use of their cash collateral to pay taxes and to meet all other expenses necessary to preserve their assets and continue its operations so as to best realize a return to the unsecured and under secured creditors in this matter. As indicated in the Updated 13-Week Budget, the Debtors' businesses produce sufficient cash flow and maintain a sufficient cash reserve to maintain itself with more than sufficient funds to pay routine bills and obligations. Additionally, the Debtors' new President, Charles Sharoubim, has been discussing potential DIP funding through private sources who are loyal to the Chariots of Palm Beach "brand" and who are fully supporting the Debtors' efforts to maximize returns to create the largest possible dividend for distribution to the unsecured and under secured creditors. The Debtors have agreed with all Consenting Parties that the secured creditors will cooperate fully in the transfer of title to the purchasers of Debtors' inventory as follows: (a) Following the sale of any vehicle, the Debtors will email to counsel for the parties that participated in and agreed-to the terms and conditions of the Mediated Settlement Agreement, a "sales report package", including, but not limited to an executed Bill of Sale, executed Purchase Order and any other pertinent documents relating to the transaction. (b) Upon presentation of the executed Bill of Sale and Purchase Order and other related transaction documents for any particular vehicle, the holder of the original title for such vehicle will cause the original title to be immediately released to the proposed CRO for processing and transfer to the purchaser, free and clear of all claims or liens. (c) Liens will attach to sale proceeds in the same manner and priority as they existed prior to such sale. Proceeds will be held by the CRO pending determination of lien and priority of lien rights. (d) Pending any subsequent hearing(s) on use of cash collateral, the Debtors and the Consenting Parties have agreed that the Debtors are authorized to consummate the pre-petition sales of vehicles (whether such sale was a cash transaction or otherwise) from any type of inventory (consigned or otherwise) in the ordinary course of the Debtors' business at no less than fair market value to a bona fide purchaser. (e) The Debtors have agreed to provide to the Consenting Parties, satisfactory evidence, on a case-by-case basis, including executed Purchase Orders, Bills of Sale and proof of receipt of such sale proceeds, financing proceeds or otherwise. A full-text copy of the Debtor's Motion, dated August 17, 2017, is available at https://is.gd/b7NcYR About Chariots of Palm Beach Chariots of Palm Beach, Inc. -- http://www.chariotsofpb.com/-- is an exclusive dealer of luxury cars, both used and new. The Company also offers for rent luxury automobiles. Based in West Palm Beach, Florida, Chariots of Palm Beach filed a Chapter 11 petition (Bankr. S.D. Fla. Case No. 17-19455) on July 27, 2017. The petition was signed by Charles Sharoubim, president. The Hon. Paul G. Hyman, Jr. presides over the case. Steven S. Newburgh, Esq. at McLaughlin & Stern, LLP, is the Debtor's counsel. The Debtor estimated $1 million to $10 million in total assets and $10 million to $50 million in total liabilities. CHARIOTS OF PALM: Wants to Use Cash Collateral to Payoff Chase Auto ------------------------------------------------------------------- Chariots of Palm Beach, Inc. and H&S, Inc. request entry of interim and final orders authorizing the use of Cash Collateral for the sole purpose of remitting payment to Chase Auto Finance in the amount of $59,438 plus $5.50 per diem until date of actual payment and granting such other and further relief as is just and proper. The Debtors propose to use cash collateral monies being held by the Chief Restructuring Officer, Michael Phelan specifically for the purpose of consummating a prepetition transaction with a customer of Chariots of Palm Beach. The customer, Arthur L. Silber, on June 24, 2017, purchased a 2016 Porsche Cayenne S for $73,000, Mr. Silber traded-in his 2015 Mercedes-Benz GL450 with 18,923 miles on the odometer and received a trade-in credit in the amount of $45,000. Said motor vehicle is currently being offered for sale by Chariots of Palm Beach for $52,800. On the same date of June 24, 2017, Mr. Silber paid Chariots of Palm Beach $20,000 as a down payment and took possession of the purchased Porsche Cayenne S. While Mr. Silber has not yet received title for the purchased vehicle, it is anticipated that the title will be released by the secured creditor holding the original title to said vehicle upon presentation of the documents pursuant to the title release protocols reached between the Debtors and the various secured creditors in these Chapter 11 proceedings. As shown on the Purchase Order and accompanying Payoff Authorization Form, duly signed by the customer, Arthur L. Silber, payment in the amount of $59,438 is due and payable to Mr. Silber's lender, Chase Auto Finance, plus $5.50 per diem interest from July 28, 2017 to the date of the actual payoff for the traded Mercedes-Benz GL450. Accordingly, the Debtors seek immediate permission to use cash collateral as it would be patently unfair to penalize a customer of Chariots of Palm Beach, who was a BFP on June 24, 2017, by failing to remit payment to Chase Auto Finance given that Mr. Silber purchased a $73,000 Porsche whose "clean retail" value according to NADA valuation is approximately $68,175.00 and the trade-in vehicle is currently being offered for sale by said Debtor at $52,800. Additionally, the Debtors tell the Court that unless and until the lien of Chase Auto Finance is removed from the trade-in vehicle, same cannot be transferred in the ordinary course to a bona fide postpetition purchaser, thereby harming the interests of the bankruptcy estate. Thus, the Debtors believe that an emergency need exists for the Debtors to immediately remit the payoff owed to Chase Auto Finance so as to preserve the goodwill of the Debtors and to preserve the increased profits which may ultimately result from the sale of the traded-in 2015 Mercedes-Benz GL450. A full-text copy of the Debtor's Motion, dated August 19, 2017, is available at https://is.gd/j2IWJD About Chariots of Palm Beach Chariots of Palm Beach, Inc. -- http://www.chariotsofpb.com/-- is an exclusive dealer of luxury cars, both used and new. The Company also offers for rent luxury automobiles. Based in West Palm Beach, Florida, Chariots of Palm Beach filed a Chapter 11 petition (Bankr. S.D. Fla. Case No. 17-19455) on July 27, 2017. The petition was signed by Charles Sharoubim, president. The Debtor estimated $1 million to $10 million in total assets and $10 million to $50 million in total liabilities. The Hon. Paul G. Hyman, Jr., presides over the case. Steven S Newburgh, Esq., at McLaughlin & Stern, LLP, serves as counsel to the Debtor. CHARLIELUCY LLC: U.S. Trustee Unable to Appoint Committee --------------------------------------------------------- The Office of the U.S. Trustee on Aug. 24 disclosed in a court filing that no official committee of unsecured creditors has been appointed in the Chapter 11 case of CHARLIELUCY LLC. About CHARLIELUCY LLC CHARLIELUCY, LLC, filed a Chapter 11 bankruptcy petition (Bankr. S.D.N.Y. Case No. 17-17543) on June 16, 2017. Tarek K. Kiem, Esq., at Kiem Law, PLLC serves as bankruptcy counsel. The Debtor's assets and liabilities are both less than $1 million. CHINA COMMERCIAL: Reports $4.7M Net Loss for Second Quarter ----------------------------------------------------------- China Commercial Credit, Inc., filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of US$4.72 million on US$56,016 of total interest and fee income for the three months ended June 30, 2017, compared to a net loss of US$1.71 million on US$250,008 of total interest and fee income for the three months ended June 30, 2016. For the six months ended June 30, 2017, China Commercial reported a net loss of US$6.01 million on US$162,792 of total interest and fee income compared to a net loss of US$581,671 on US$484,809 of total interest and fee income for the six months ended June 30, 2016. As of June 30, 2017, the Company had US$6.75 million in total assets, US$7.23 million in total liabilities and a total shareholders' deficit of US$480,945. The Company had an accumulated deficit of US$76,249,601 as of June 30, 2017. In addition, the Company had a negative net asset of US$480,945 as of June 30, 2017. As of June 30, 2017, the Company had cash and cash equivalents of US$1,906,585, and total short-term borrowings of US$ nil. Caused by the limited funds, the management assessed that the Company was not able to keep the size of lending business within one year from the filing. During the six months ended June 30, 2017, the Company incurred operating loss of US$6,014,952. Affected by the reduction of lending business and guarantee business and increased loss loans, the management was in the opinion that recurring operating losses with be made within one year from the issuance of the filing. The Company continues to use its best effort to improve collection of loan receivable and interest receivable. Management engaged two PRC law firms to represent the Company in the legal proceedings against the borrowers and their counter guarantors. During the six months ended June 30, 2017, the Company incurred negative operating cash flow of US$678,054. Affected by significant balance of charged-off interest receivable, the management assessed the Company would continue to have negative operating cash flow within one year from the issuance of the filing of Form 10-Q. The Company continues to reduce the redundant headcount and entered into a new office lease with lower rent commitment since January 1, 2017, to improve operating cash flow. Most loan customers are from textile industry which has been facing downward pressure. Additionally adversely affected by emergence of internet finance entities, the Company was facing fierce competition. Considering the high risks from customer base and competitors, management assessed the Company would further reduce the loan business without strong financial support. The Company is actively seeking other strategic investors with experience in lending business. If necessary, the shareholders of Wujiang Luxiang will contribute more capital into Wujiang Luxiang. "While management believes that the measures in the liquidity plan will be adequate to satisfy its liquidity and cash flow requirements for the twelve months after the unaudited condensed interim consolidated financial statements are available to be issued, there is no assurance that the liquidity plan will be successfully implemented. Failure to successfully implement the liquidity plan will have a material adverse effect on the Company's business, results of operations and financial position, and may materially adversely affect its ability to continue as a going concern," the Company said. A full-text copy of the Form 10-Q is available for free at: https://is.gd/NXhV7p About China Commercial Credit China Commercial Credit, Inc., offers financial services in China. It provides direct loans, loan guarantees and financial leasing services to small-to-medium sized businesses, farmers and individuals in the city of Wujiang, Jiangsu Province. China Commercial reported a net loss of US$1.98 million on US$1.29 million of total interest and fee income for the year ended Dec. 31, 2016, compared with a net loss of US$61.26 million on US$2.98 million of total interest income for the year ended Dec. 31, 2015. Marcum Bernstein & Pinchuk LLP, in Shanghai, China, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2016, citing that the Company has accumulated deficit that raises substantial doubt about its ability to continue as a going concern. CINRAM GROUP: Exclusive Plan Filing Period Extended Until Oct. 16 ----------------------------------------------------------------- The Hon. Vincent F. Papalia of the U.S. Bankruptcy Court for the District of New Jersey has issued an order extending the exclusive periods during which Cinram Group Inc. and its debtor-affiliates may file chapter 11 plan and solicit acceptances of such plan through and including October 16 and December 12, 2017, respectively. The Troubled Company Reporter has previously reported that the Debtors asked the Court to extend by approximately 150 days their exclusive periods through and including December 14 and February 12, 2018, respectively, in order to provide them with adequate time to obtain approval of the Disclosure Statement, conduct the solicitation process, prosecute confirmation of the Plan, and complete their restructuring as efficiently as possible for the benefit of all stakeholders and parties-in-interest. The Debtors related that they have made reasonable efforts since the Petition Date to engage with the Committee and other key stakeholders in an effort to reach a consensus regarding the terms of a proposed chapter 11 plan. While those efforts have not yet resulted in productive discussions among the parties, the Debtors said that they have prepared and filed a Disclosure Statement and Plan with the goal of confirming a fully consensual plan. Although the Debtors had already filed a chapter 11 plan and were currently in the process of seeking approval of the Disclosure Statement and to solicit votes on such plan, the Debtors believed it would be prudent to extend the Exclusive Periods while they pursue confirmation of the Plan. About Cinram Group, Inc. Cinram Group, Inc., based in Livingston, New Jersey, and its affiliates filed a Chapter 11 petition (Bankr. D.N.J. Lead Case No. 17-15258) on March 17, 2017. The petition was signed by Glenn Langberg, chief executive officer. Cinram Group, Inc. estimated $1 million to $10 million in both assets and liabilities. Cinram Operations, Inc. estimated $1 million to $10 million in assets and under $50,000 in liabilities. Cinram Property Group, LLC listed $10 million to $50 million in assets and under $50,000 in liabilities. The Hon. Vincent F. Papalia presides over the jointly administered cases. Kenneth A. Rosen, Esq., at Lowenstein Sandler, LLP, serves as bankruptcy counsel to the Debtors. On April 3, 2017, the Office of the U.S. Trustee appointed an official committee of unsecured creditors. The committee members are SIR Properties Trust, MPEG LA LLC, Technicolor Home Entertainment Services Inc., and Richter LLP. Cole Schotz P.C. serves as bankruptcy counsel. CIRCULATORY CENTER: Seeks Oct. 20 Exclusive Plan Filing Extension ----------------------------------------------------------------- Circulatory Center of West Virginia, Inc. requests the U.S. Bankruptcy Court for the Western District of Pennsylvania to extend the time in which only the Debtor may: -- file a Plan of Reorganization by a period of 60 days, until October 20, 2017; and -- procure acceptance of the Plan by a period of 60 days, until January 17, 2018. The Debtor relates that it is actively negotiating a sale of its business operations, which sale is integral to any plan of the Debtor. A sale hearing is presently scheduled for August 31, 2017. The Debtor tells the Court that the result of the sale hearing will have a substantial impact on the bankruptcy estate. Furthermore, the Debtor claims that creditor Fifth Third Bank has sought the appointment of a Chapter 11 Trustee. A hearing on that Motion will occur on September 8, 2017. About Circulatory Center Circulatory Center of West Virginia, Inc., sought protection under Chapter 11 of the Bankruptcy Code (Bankr. W.D. Pa. Case No. 17-20211) on Jan. 20, 2017. The petition was signed by Tom Certo, president. The case is assigned to Judge Gregory L. Taddonio. At the time of the filing, the Debtor estimated assets of less than $100,000 and liabilities of $1 million to $10 million. The Debtor is represented by Robert O Lampl, Esq., at Robert O. Lampl, Attorney at Law. The Office of the U.S. Trustee on March 20, 2017, disclosed in a court filing that no official committee of unsecured creditors has been appointed in the Chapter 11 case of Circulatory Center of West Virginia, Inc. CLUB VILLAGE: Needs Until November 20 to File Chapter 11 Plan ------------------------------------------------------------- Club Village, LLC requests the U.S. Bankruptcy Court for the Southern District of Florida to extend its exclusivity period to: -- file a plan of reorganization and disclosure statement for 90 days through and including November 20, 2017, and -- solicit acceptances to the plan for 90 days through and including January 22, 2018. The Debtor relates that the Court has entered an Order Granting Motion to Approve a Compromise between the Debtor and its Secured Lender. Currently, the Debtor claims that it is still analyzing claims to determine various treatments and whether a plan will in fact be needed, or whether the Debtor will seek voluntary dismissal. About Club Village Club Village, LLC, a single asset real estate business based in 1601 NW 13 St., Boca Raton, Florida, filed a Chapter 11 petition (Bankr. S.D. Fla. Case No. 16-21497) on Aug. 22, 2016. The petition was signed by Fred DeFalco, managing member. The case is assigned to Judge Erik P. Kimball. The Debtor disclosed total assets at $11.5 million and total debts at $11.2 million. The Debtor is represented by Aaron A. Wernick, Esq., at Furr & Cohen. The Debtor engaged Andrew Sodl, Esq., at Akerman LLP as special counsel; and Paul Rubin, EA, Mtax and Rubin & Associates, CPA Firm, PA as accountants. No trustee, examiner or statutory committee has been appointed in the Debtor's case. COMPLETION INDUSTRIAL: Taps Fishman Jackson as Legal Counsel ------------------------------------------------------------ Completion Industrial Minerals, LLC seeks approval from the U.S. Bankruptcy Court for the Northern District of Texas to hire legal counsel in connection with its Chapter 11 case. The Debtor proposes to employ Fishman Jackson Ronquillo PLLC to, among other things, give legal advice regarding its duties under the Bankruptcy Code; assist in the possible sale of its assets and operations; analyze claims of creditors; and prepare a bankruptcy plan. The hourly rates charged by the firm range from $200 to $400 for its attorneys and from $135 to $175 for paraprofessionals. Mark Ralston, Esq., the attorney who will be handling the case, will charge $400 per hour The firm received a retainer of $25,000, of which $8,677.50 was used to pay its fees for pre-bankruptcy services while $1,717 was used to pay the filing fee. Mr. Ralston disclosed in a court filing that his firm is a "disinterested person" as defined in section 101(14) of the Bankruptcy Code. Fishman Jackson can be reached through: Mark H. Ralston, Esq. Fishman Jackson Ronquillo PLLC Three Galleria Tower 13155 Noel Road, Suite 700 Dallas, TX 75240 Tel: (972) 419-5544 Fax: (972) 4419-5500 Email: mralston@fjrpllc.com About Completion Industrial Minerals Completion Industrial Minerals, LLC -- http://www.ciminerals.com/ -- is a producer of northern alpha quartz proppants. It is a full-service provider of products and services from the quarry to the rail head at destination. The Debtor sought protection under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Texas Case No. 17-43208) on August 1, 2017. Thomas Giordani, its president, signed the petition. At the time of the filing, the Debtor disclosed that it had estimated assets and liabilities of $1 million to $10 million. Judge Russell F. Nelms presides over the case. CRESTALLIANCE LLC: Voluntary Chapter 11 Case Summary ---------------------------------------------------- Debtor: Crestalliance, LLC 2275 Hungtington Drive 534 San Marino, CA 91108 Tel: 626-701-6379 Type of Business: Crestalliance, LLC, was founded in 2011, and is located at 2275 Huntington Dr. in San Marino. Chapter 11 Petition Date: August 24, 2017 Case No.: 17-20450 Court: United States Bankruptcy Court Central District of California (Los Angeles) Debtor's Counsel: Francisco Aldana, Esq. LAW OFFICES OF FRANCISCO JAVIER ALDANA 3033 5th Avenue, Suite 201 San Diego, CA 92103 Tel: 619-236-8355 Fax: 619-374-7056 E-mail: efile@aldanalawoffice.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Rebecca Chiu, managing member. The Debtor did not file a list of its 20 largest unsecured creditors on the Petition Date. A full-text copy of the petition is available for free at: http://bankrupt.com/misc/cacb17-20450.pdf DATASTARUSA INC: Case Summary & 20 Largest Unsecured Creditors -------------------------------------------------------------- Debtor: DataStarUSA, Inc 6501 Windcrest, Suite 300 Plano, TX 75024 Type of Business: DataStarUSA provided construction products and service. DataStarUSA is a small business debtor as defined in 11 U.S.C. Section 101(51D). Chapter 11 Petition Date: August 24, 2017 Case No.: 17-41826 Court: United States Bankruptcy Court Eastern District of Texas (Sherman) Debtor's Counsel: Eric A. Liepins, Esq. ERIC A. LIEPINS P.C. 12770 Coit Road, Suite 1100 Dallas, TX 75251 Tel: (972) 991-5591 E-mail: eric@ealpc.com Estimated Assets: $0 to $50,000 Estimated Liabilities: $1 million to $10 million The petition was signed by Jon Marshall, president. The Debtor's list of 20 largest unsecured creditors is available for free at http://bankrupt.com/misc/txeb17-41826.pdf DELAWARE SPORTS: Has Defaulted on Middletown Lease Obligation ------------------------------------------------------------- Judge Kevin Gross of the U.S. Bankruptcy Court for the District of Delaware addresses important issues concerning Debtor Delaware Sports Complex, LLC and the Town of Middletown. The issues are: (1) whether the Levels Road Sports Complex Ground Lease Agreement, dated February 24, 2016, between Debtor and the Town, a non-residential lease, was terminated before Debtor's bankruptcy filing, and (2) whether the Town's interest as landlord may be subordinated to the lien of the post-petition lender if required under the Debtor's financing agreement. The Court rules that the Debtor has defaulted on its Lease obligation and that the Town properly terminated the Lease. Upon analysis, the Court finds that it is the Debtors' failure to enter into a recoupment agreement that creates an uncured default. The Debtor indicated at the Hearing that it may want to develop only six or so fields and because of the lighter traffic the recoupment agreement would not be needed. The Lease, however, makes the parties' expectations clear. The Debtor was in good faith to develop the leasehold as numerous fields and facilities. Although the Lease does not contain timelines for the development of the fields and buildings, the "time is of the essence" provision in the Lease establishes the Debtor's and the Town's expectation that the entire project would be accomplished and promptly. It is perfectly clear to the Court that had the parties to the Lease focused on their understanding and agreement that Debtor would fully develop the property promptly, they would have included time limits. The Debtor's failure to promptly enter into the recoupment agreement based on its intention to develop only a portion of the property and to fulfill only a portion of its plan is a default which Debtor failed to cure in a timely fashion. The default renders the Lease terminated. A full-text copy of Judge Gross' Memorandum Order dated August 21, 2017, is available at: http://bankrupt.com/misc/deb17-11175-74.pdf About Delaware Sports Complex Delaware Sports Complex, LLC owns the Delaware Sports Complex, a 180-acre state-of-the art indoor and outdoor sports facility for training and play. Located in Middletown, Delaware, the complex serves as a hub for tournaments of all different sports. The Debtor sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D. Del. Case No. 17-11175) on May 23, 2017. Daniel Watson, manager signed the petition. At the time of the filing, the Debtor estimated its assets and debts at $1 million to $10 million. DELCATH SYSTEMS: Gets Another Non-Compliance Notice from NASDAQ --------------------------------------------------------------- Delcath Systems, Inc, Inc., received written notification from the Listing Qualifications Staff of The NASDAQ Stock Market LLC on Aug. 15, 2017, indicating that, based upon the Company's continued non-compliance with the minimum stockholder's equity requirement for continued listing on The Nasdaq Capital Market, as set forth in Nasdaq Listing Rule 5550(b)(2), the Staff had determined to delist the Company's securities from Nasdaq unless the Company timely requests a hearing before the Nasdaq Hearings Panel. The Company intends to timely request a hearing before the Panel, which request will stay any suspension or delisting action by Nasdaq at least until the hearing process concludes and any extension granted by the Panel expires. At the hearing, the Company will present its plan to evidence compliance with the Rule, and request an extension of time within which to do so. As previously disclosed by the Company, on Feb. 13, 2017, Staff notified the Company that the bid price of its listed security had closed at less than $1 per share over the previous 30 consecutive business days, and, as a result, did not comply with Listing Rule 5550(a)(2). In accordance with Listing Rule 5810(c)(3)(A), the Company was provided 180 calendar days, or until Aug. 14, 2017, to regain compliance. The Company did not evidence compliance with the Rule by Aug. 14, 2017, and was not eligible for an additional 180 day extension because it does not meet the stockholder's equity requirement, which resulted in the issuance of the Staff Determination. About Delcath Systems Delcath Systems, Inc., is an interventional oncology company focused on the treatment of primary and metastatic liver cancers. The Company's investigational product -- Melphalan Hydrochloride for Injection for use with the Delcath Hepatic Delivery System (Melphalan/HDS) -- is designed to administer high-dose chemotherapy to the liver while controlling systemic exposure and associated side effects. The Company has commenced a global Phase 3 FOCUS clinical trial for Patients with Hepatic Dominant Ocular Melanoma (OM) and a global Phase 2 clinical trial in Europe and the U.S. to investigate the Melphalan/HDS system for the treatment of primary liver cancer (HCC) and intrahepatic cholangiocarcinoma (ICC). Melphalan/HDS has not been approved by the U.S. Food & Drug Administration (FDA) for sale in the U.S. In Europe, its system has been commercially available since 2012 under the trade name Delcath Hepatic CHEMOSAT Delivery System for Melphalan (CHEMOSAT), where it has been used at major medical centers to treat a wide range of cancers of the liver. Delcath Systems reported a net loss of $17.97 million on $1.99 million of product revenue for the year ended Dec. 31, 2016, compared to a net loss of $14.70 million on $1.74 million of product revenue for the year ended Dec. 31, 2015. As of June 30, 2017, Delcath Systems had $18.60 million in total assets, $17.73 million in total liabilities and $867,000 in total stockholders' equity. Grant Thornton LLP, in New York, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2016, citing that the Company has incurred recurring losses from operations and as of Dec. 31, 2016, has an accumulated deficit of $279.2 million. These conditions, along with other matters, raise substantial doubt about the Company's ability to continue as a going concern. DIMENSION THERAPEUTICS: Inadequate Funding Cast Going Concern Doubt ------------------------------------------------------------------- Dimension Therapeutics, Inc., filed its quarterly report on Form 10-Q, disclosing a net loss of $12.31 million on $4.37 million of revenue for the three months ended June 30, 2017, compared with a net loss of $12.10 million on $2.37 million of revenue for the same period in 2016. For the six months ended June 30, 2017, the Company listed a net loss of $25.80 million on $7.99 million of revenue, compared to a net loss of $21.61 million on $4.58 million of revenue for the same period in the prior year. The Company's balance sheet at June 30, 2017, showed $64.21 million in total assets, $28.14 million in total liabilities, and a stockholders' equity of $36.07 million. As of June 30, 2017, the Company had cash, cash equivalents and marketable securities of $47.5 million. The Company believe its existing cash, cash equivalents and marketable securities as of June 30, 2017 and reimbursements and $15 million in milestones to be received in connection with our collaboration agreement with Bayer will enable the Company to fund its operating expenses and capital expenditure requirements to the end of 2018. Without the milestones, the company would be able to fund operations to mid-2018. This raises substantial doubt of the Company's ability to operate as a going concern for a period of one year from the issuance of these financial statements. If the Company is unable to obtain funding on a timely basis, it may be required to significantly curtail, delay or discontinue one or more of its research or development programs or the commercialization of any product candidate or be unable to expand its operations or otherwise capitalize on its business opportunities, as desired, which could materially affect its business, financial condition and results of operations. Without additional funding, the Company may not have sufficient cash on hand or be able to generate sufficient cash flow from operations to meet its cash requirements over the next twelve months. These uncertainties raise substantial doubt about our ability to continue as a going concern. A copy of the Form 10-Q is available at: https://is.gd/h21aXE Dimension Therapeutics, Inc., is a gene therapy platform company, focuses on discovering and developing therapeutic products for people living with rare and metabolic diseases associated with the liver, based on the most advanced mammalian adeno-associated virus (AAV) gene delivery technology. DOOMAWENDSCHUH LLC: U.S. Trustee Unable to Appoint Committee ------------------------------------------------------------ The Office of the U.S. Trustee on Aug. 24 disclosed in a court filing that no official committee of unsecured creditors has been appointed in the Chapter 11 case of Doomawendschuh, LLC. Headquartered in Miami, Florida, Doomawendschuh, LLC, filed for Chapter 11 bankruptcy protection (Bankr. S.D. Fla. Case No. 17-18495) on July 6, 2017, estimating its assets and liabilities at between $100,001 and $500,000 each. Aleida Martinez Molina, Esq., at Weiss Serota Helfman Cole & Bierman, P.L., serves as the Debtor's bankruptcy counsel. DYNAMIC INT'L: Taps Shardul Amarchand as Arbitration Counsel ------------------------------------------------------------ Dynamic International Airways, LLC seeks authority from the US Bankruptcy Court for the Middle District of North Carolina, Greensboro Division, to employ Shardul Amarchand Mangaldas & Co, Advocates and Solicitors, as special arbitration counsel to the Debtor nunc pro to July 19, 2017, to provide legal counsel as needed in all matters related to an appeal to the India Appellate Tribunal. On September 8, 2015, the Debtor filed a Complaint against Air India Limited for breach of contract, breach of implied covenant of good faith and fair dealing, promissory estoppel, and unjust enrichment. The Debtor seeks an award of damages of approximately $97.7 million related to a 2014 Charter Agreement. On December 7, 2015, Air India sought leave to file a motion to compel arbitration of disputes, and file its own claims related to the 2014 Charter Agreement as well as additional agreements between the Debtor and Air India based on arbitration clauses in those Agreements. On March 20, 2017, Air India filed a paper with the U.S. District Court for the Southern District of New York detailing that on March 10, the Arbitrator entered an award in favor of Air India and against the Debtor. The Award is in the approximate amount of $10.5 million. The Debtor, in connection with Shardul, commenced the procedures to Appeal the Award with the High Court of Delhi (Indian Appellate Tribunal). The compensation of Shardul's attorneys is proposed at varying rates currently ranging from $250.00 per hour for associate attorneys to $500 per hour for the managing partner of Shardul. Ila Kappor, Partner at Shardul Amarchand Mangaldas & Co, attests that neither Shardul nor any of its partners or associates, hold any interest adverse to the Debtor's estate, including the Debtor's creditors or any other party-in-interest or their respective attorneys and accountants with respect to the matters on which Shardul is to be retained or employed in the Chapter 11 case. The Firm can be reached through: Ila Kapoor Shardul Amarchand Mangaldas & Co Amarchand Towers 216 Okhla Industrial Estate, Phase III New Delhi 110 020 T: +91 11 4159 0700, 4060 6060 About Dynamic International Airways Dynamic International Airways, LLC, sought protection under Chapter 11 of the Bankruptcy Code (Bankr. M.D.N.C. Case No. 17-10814) on Jul 19, 2017. The case is assigned to Judge Catharine R. Aron. At the time of the filing, the Debtor disclosed that it had estimated assets of $10 million to $50 million and liabilities of $50 million to $100 million. The Debtor hired Bell Davis & Pitt, PA, and Garman Turner Gordon LLP, as attorneys, and MJAC L.L.C., d/b/a Allison Consulting, as financial advisor. EARTH PRIDE: Needs Until January 2018 to File Chapter 11 Plan ------------------------------------------------------------- Earth Pride Organics, LLC and Lancaster Fine Foods, Inc. request the U.S. Bankruptcy Court for the Eastern District of Pennsylvania to extend for an additional 120 days the Debtors' exclusive period to file and solicit acceptances or rejections of a Chapter 11 plan, to January 25 and March 16, 2018, respectively. Pursuant to the Order entered July 21, 2017, the Court fixed the dates for filing proofs of claim in their Chapter 11 cases -- September 11, 2017 as general bar date and November 27, 2017 as governmental unit bar date. The Debtor claims that it will need time to review the various proofs of claim in order to determine the amount and character of claims asserted against their estates. The Debtors believe that if the exclusive period is extended, they will be afforded additional time within which to negotiate and formulate a plan with their creditors, thereby protecting the interests of the Debtors and their estates. About Earth Pride Organics, LLC Earth Pride Organics, LLC -- http://www.earthprideorganics.com/-- is a family-owned holding company that includes American Specialty Foods, Lancaster Fine Foods, EPX Trucking and C.O. Nolt's Bakery Supply. Headquartered in Lancaster, Pennsylvania, each EPO subsidiary shares the commonality of specialty food and creates a vertically integrated organization. Lancaster Fine Foods, Inc. -- http://www.lancasterfinefoods.com-- manufactures and sells food, offering barbecue sauces, mustards, salsas, marinades, hot sauces, chutneys, cheese spreads, and other common condiments. Earth Pride and Lancaster Fine Foods sought Chapter 11 bankruptcy protection (Bankr. E.D. Pa. Case Nos. 17-13816 and 17-13819) on May 31, 2017, each estimating assets and liabilities between $1 million and $10 million. The petitions were signed by Michael S. Thompson, managing member. Judge Eric L. Frank presides over the bankruptcy cases. Paul Brinton Mashchmeyer, Esq., at Maschmeyer Karalis P.C., serves as the Debtors' bankruptcy counsel, and Weir & Partners LLP, as special litigation counsel. An official committee of unsecured creditors has been appointed by the U.S. Trustee. No request for the appointment of a trustee or examiner has been made in these Chapter 11 cases. EC MANSFIELD: Can Use Capital One Cash Collateral Through Sept. 14 ------------------------------------------------------------------ Judge David R. Jones of the U.S. Bankruptcy Court for the Southern District of Texas authorized EC Mansfield, LLC, to use the cash collateral of Capital One National Association in accordance with the New Budget through September 14, 2017. The Debtor and Capital One have agreed to the Debtor's continued use of cash collateral. The New Budget reflects operating expenses in the aggregate sum of $29,810 during the period from Aug. 14 through Sept. 10, 2017. A final hearing on the Debtor's Motion to use cash collateral is set for Sept. 13, 2017 at 9:00 a.m. A full-text copy of the Agreed Second Interim Order, dated Aug. 14, 2017, is available at https://is.gd/47XcTq Capital One National Association is represented by: Bruce Ruzinsky, Esq. Matt Cavenaugh, Esq. Jackson Walker, L.L.P. 1401 McKinney Street, Suite 1900 Houston, Texas 77010 Tel: (713) 752-4204 Fax: (713) 308-4184 About The Tifaro Group and EC Mansfield The Tifaro Group, Ltd., is a Texas limited partnership organized as an investment vehicle for the purpose of owning interest in various healthcare-related entities. Headquartered in Houston, Texas, EC Mansfield LLC -- d/b/a Elitecare Emergency Room, Elitecare 24 Hour Emergency Room Manfield, Elitecare 24 Hour Emergency Room, Elitecare 24 Hour Emergency Center, Elitecare Emergency Center, Elitecare Emergency Room -- owns an emergency care ambulatory facility located in Mansfield, Texas. The Tifaro Group sought protection under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Tex. Case No. 17-80171) on June 2, 2017, estimating its assets and debt at $10 million to $50 million. EC Mansfield filed for Chapter 11 bankruptcy protection (Bankr. S.D. Tex. Case No. 17-34452) on July 25, 2017, estimating its assets and liabilities at between $1 million and $10 million. The petitions were signed by Patrick J. Magill, president of Magill, PC, financial agent of the Debtor. Judge David R. Jones presides over the cases. Melissa A. Haselden, Esq., and Edward L. Rothberg, Esq., at Hoover Slovacek LLP, serve as the Debtors' legal counsel. EMMAUS LIFE: Incurs $11.8 Million Net Loss in Second Quarter ------------------------------------------------------------ Emmaus Life Sciences, Inc., filed with the Securities and Exchange Commission its quarterly report on Form 10-Q reporting a net loss of $11.77 million on $118,641 of net revenues for the three months ended June 30, 2017, compared to a net loss of $3.14 million on $172,681 of net revenues for the three months ended June 30, 2016. For the six months ended June 30, 2017, the Company reported a net loss of $18.27 million on $226,118 of net revenues compared to a net loss of $7.60 million on $252,080 of net revenues for the same period a year ago. As of June 30, 2017, Emmaus Life had $48.42 million in total assets, $76.17 million in total liabilities, and a total stockholders' deficit of $27.74 million. "Based on our losses to date, anticipated future revenue and operating expenses, debt repayment obligations and cash and cash equivalents balance of $5.1 million as of June 30, 2017, we do not have sufficient operating capital for our business without raising additional capital. We incurred a net loss of $18.3 million for the six months ended June 30, 2017 and had an accumulated deficit at June 30, 2017 of $125.0 million. We anticipate that we will continue to incur net losses for the foreseeable future as we incur expenses for the commercialization of Endari in the U.S., NDA submission activities for Endari outside the U.S., research costs for the corneal cell sheets using Cultured Autologous Oral Mucosal Epithelial Cell Sheet ("CAOMECS") technology and the expansion of corporate infrastructure, including costs associated with being a public reporting company and additional expenses that may be associated with pursuing a possible initial public offering. We have previously relied on unregistered equity offerings, debt financings and loans, including loans from related parties. As part of this effort, we have received various loans from officers, stockholders and other investors as discussed below. As of June 30, 2017, we had outstanding notes payable in an aggregate principal amount of $19.9 million, consisting of $5.9 million of non-convertible promissory notes and $14.0 million of convertible notes. Of the $19.9 million aggregate principal amount of notes outstanding as of June 30, 2017, approximately $19.3 million is either due on demand or will become due and payable within the next twelve months. Our failure to raise capital as and when needed would have a negative impact on our financial condition and our ability to pursue our business strategies, including the commercialization of Endari and the development in the United States of CAOMECS-based cell sheet technology. "We have had recurring operating losses, have a significant amount of notes payable and other obligations due within the next years and projected operating losses including the expected costs relating to the commercialization of Endari that exceed both the existing cash balances and cash expected to be generated from operations for at least the next year. In order to meet our expected obligations, management intends to raise additional funds through equity or debt financings. In addition, we may seek to raise additional funds through collaborations with other companies and financing from other sources and a possible initial public offering. Additional funding may not be available in amounts or on terms which are acceptable to us, if at all. Due to the uncertainty of our ability to meet our current operating and capital expenses, there is substantial doubt about our ability to continue as a going concern." The Company's cash burn rate for the first six months ended June 30, 2017, was approximately $0.4 million per month. A full-text copy of the Form 10-Q is available for free at: https://is.gd/RYzcp9 About Emmaus Life Headquartered in Torrance, California, Emmaus Life Sciences, Inc., is engaged in the discovery, development, and commercialization of treatments and therapies primarily for rare and orphan diseases. Emmaus Life Sciences reported a net loss of $21.17 million on $461,591 of net revenues for the year ended Dec. 31, 2016, compared to a net loss of $13.50 million on $590,114 of net revenues for the year ended Dec. 31, 2015. SingerLewak LLP, in Los Angeles, California, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2016, citing that the Company has suffered recurring losses from operations, its total liabilities exceed its total assets and it has an accumulated stockholders' deficit. This raises substantial doubt about the Company's ability to continue as a going concern. ENDRA LIFE SCIENCES: Cumulative Losses Raise Going Concern Doubt ---------------------------------------------------------------- ENDRA Life Sciences Inc. filed its quarterly report on Form 10-Q, disclosing a net loss of $1,431,791 on $57,772 of revenue for the three months ended June 30, 2017, compared with a net loss of $729,114 on $nil of revenue for the same period in 2016. For the six months ended June 30, 2017, the Company listed a net loss of $2,173,413 on $57,772 of revenue, compared to a net loss of $1,108,591 on $nil of revenue for the same period in the prior year. The Company's balance sheet at June 30, 2017, showed $7,672,500 in total assets, $162,302 in total liabilities, and a stockholders' equity of $7,782,263. The Company has a limited operating history and had a cumulative net loss from inception to June 30, 2017 of $14,691,886. The Company had working capital of $7,510,198 as of June 30, 2017. The Company has not yet established an ongoing source of revenue sufficient to cover its operating costs and to allow it to continue as a going concern. The accompanying financial statements for the period ended June 30, 2017 have been prepared assuming the Company will continue as a going concern. The Company's cash resources could be insufficient to meet its anticipated needs during the next twelve months. The Company will require additional financing to fund its future planned operations, including research and development and commercialization of its products. The ability of the Company to continue as a going concern is dependent on the Company obtaining adequate capital to fund operating losses until it establishes a revenue stream and becomes profitable. Management's plans to continue as a going concern include raising additional capital through sales of equity securities and borrowing. However, management cannot provide any assurances that the Company will be successful in accomplishing any of its plans. If the Company is not able to obtain the necessary additional financing on a timely basis, the Company will be forced to delay or scale down some or all of its development activities or perhaps even cease the operation of its business. The ability of the Company to continue as a going concern is dependent upon its ability to successfully secure other sources of financing and attain profitable operations. There is substantial doubt about the ability of the Company to continue as a going concern within one year after the date that the financial statements are issued. A copy of the Form 10-Q is available at: https://is.gd/g7JI9S ENDRA Life Sciences Inc. is engaged in commercialization of an enhanced ultrasound technology for the pre-clinical research market. The Company's Nexus 128 system combines light-based thermoacoustics and ultrasound, to address the imaging needs of researchers studying disease models in pre-clinical applications. The Company is involved in developing TAEUS for incorporation into new ultrasound systems. The TAEUS platform has capabilities and potential clinical applications, such as enabling ultrasound to distinguish fat from lean tissue; enabling traditional ultrasound to visualize changes in tissue temperature, in real time; enabling ultrasound to view blood vessels from any angle, using only a saline solution contrasting agent, unlike Doppler ultrasound which requires precise viewing angles, and enabling ultrasound to image blood flow at the capillary level in a region, organ or tissue. ENTEROMEDICS INC: Recurring Losses Raise Going Concern Doubt ------------------------------------------------------------ EnteroMedics Inc. filed its quarterly report on Form 10-Q, disclosing a net loss of $6,840,177 on $93,060 of sales for the three months ended June 30, 2017, compared with a net loss of $4,995,165 on $276,000 of sales for the same period in 2016. For the six months ended June 30, 2017, the Company listed a net loss of $14,206,989 on $133,100 of sales, compared to a net loss of $12,403,927 on $348,000 of sales for the same period in the prior year. The Company's balance sheet at June 30, 2017, showed $42.52 million in total assets, $4.51 million in total liabilities, and a stockholders' equity of $38.00 million. The Company currently is not generating revenue from operations that is significant relative to its level of operating expenses, and does not anticipate generating significant revenue from operations or otherwise in the short-term to mid-term. The Company has financed its operations to date principally through the sale of equity securities, debt financing and interest earned on investments. The Company's history of operating losses, limited cash resources and lack of certainty regarding obtaining significant third-party reimbursement for the vBloc System or timing thereof, raise substantial doubt about its ability to continue as a going concern absent a strengthening of the Company's cash position. A copy of the Form 10-Q is available at: https://is.gd/ZV1fOf EnteroMedics Inc. is a medical device company with approvals to commercially launch its product, the vBloc Neuromodulation System (vBloc System). The St. Paul, Minn.-based Company is focused on the design and development of devices that use neuroblocking technology to treat obesity, metabolic diseases and other gastrointestinal disorders. ENVIGO LABORATORIES: Moody's Reviews Caa1 CFR for Upgrade --------------------------------------------------------- Moody's Investors Service placed the ratings of Envigo Laboratories Inc. under review for upgrade, including the Caa1 Corporate Family Rating and Caa1-PD Probability of Default Rating. Moody's also placed under review for upgrade the B2 rating on the first lien senior secured credit facilities and the Caa2 rating on the second lien credit facility. This rating action follows the announcement that Envigo has agreed to be acquired by Avista Healthcare Public Acquisition Corp, a special purpose acquisition corporation. If the transaction closes as expected, Envigo will become a wholly-owned subsidiary of the publicly traded company and will use a portion of the equity proceeds to repay debt. The deal values Envigo at an anticipated initial enterprise value of approximately $924 million. Subject to shareholder and regulatory approvals and customary and other closing conditions, the transaction is expected to close in late 2017. Moody's review will focus on the amount of debt repayment as a result of the transaction and the composition of Envigo's final capital structure. Ratings placed under review for upgrade: Envigo Laboratories Inc. Caa1 Corporate Family Rating Caa1-PD Probability of Default Rating B2 (LGD2) senior secured 1st lien term loans Caa2 (LGD5) senior secured 2nd lien term loan Outlook, Changed To Rating Under Review From Stable RATINGS RATIONALE The Caa1 Corporate Family Rating (under review for upgrade) reflects Envigo's very high financial leverage, with adjusted debt/EBITDA of over 8.0x for the twelve months ended June 30, 2017. The rating also reflects Envigo's weak coverage of fixed costs, including interest, capital expenditures and pension payments. Envigo has significant concentration of revenue and profits in the UK, exposing it to volatility associated with currency fluctuations. In addition, its lab animal business (research models) is dependent on price increases to offset ongoing volume declines. The ratings are supported by high barriers to entry and the defensible nature of the research model business. The principal methodology used in these ratings was "Business and Consumer Service Industry" published in October 2016. Headquartered in New Jersey, Envigo is an early stage contract research organization. The company provides non-clinical safety assessment services. It also provides laboratory animals (rats and mice) for use in research by the pharmaceutical, chemical and crop protection industries, as well as academic and governmental institutions. Net revenue for the twelve months ended June 30, 2017 approximated $397 million. ESPLANADE HL: Exclusive Plan Filing Period Extended to Oct. 13 -------------------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of Illinois has extended, at the behest of Esplanade HL, LLC and its affiliated debtors, the exclusive periods during which only the Debtors may file a Chapter 11 plan or plans of reorganization and solicit acceptances of the plan, to and including Oct. 13, 2017, and Dec. 15, 2017, respectively. A status on the Debtor's Plan and Disclosure Statement will be held on Oct. 18, 2017, at 10:30 a.m. Judge Carol A. Doyle previously granted a short extension of the Plan exclusivity periods to and including August 23 and October 25, respectively. The Court set the Debtors' Extension Motion for a continued hearing to be held on August 23, while a status hearing previously set for August 17 was stricken. The Troubled Company Reporter previously reported that the Debtors sought a 60-day extension of the exclusive periods to file and solicit acceptances of a plan, to and including October 13 and December 15, 2017, respectively. The Debtors need ample time to complete the sale of all their respective assets, as well as to exclusively formulate and implement a viable Plan. The Debtors related that after engaging A&G Realty Partners, LLC as their real estate advisors, the firm has been actively marketing the Properties with the intent of selling or refinancing all or a combination of the Properties. Consequently, on June 8, 2017, the Court approved the sale of the EHL Property to VEREIT Acquisitions, LLC, which deal closed on June 23, generating gross sale proceeds in the amount of $6,264,000. Further, on July 12, the Court approved the 171 Belvidere Sale Motion and the sale closed on August 7, generating gross sale proceeds in the amount of $1,440,000. The Debtor 9501 W. 144th Place, LLC had recently entered into an asset purchase agreement with a potential purchaser, and anticipates filing a sale motion shortly after the diligence period in the 9501 Asset Purchase Agreement terminates. Moreover, the Court approved, by an order entered on August 2, the bid procedures relating to the sale of Debtor 2380 Esplanade Drive, LLC's Property. Absent the sale of the EHL Property, the Belvidere Property, and the 9501 Property, the Debtors tell the Court that they are unlikely to generate enough funds to confirm a plan of liquidation. However, if all four sales close, the Debtors believe that they will be able to finalize a plan that likely pays the Debtors' creditors in full on account of their allowed claims. About Esplanade HL Esplanade HL, LLC, 2380 Esplanade Drive, LLC, 9501 W. 144th Place, LLC, and 171 W. Belvedere Road, and LLC, Big Rock Ranch, LLC, each filed Chapter 11 petitions (Bankr. N.D. Ill. Case Nos. 16-33008, 16-33010, 16-33011, 16-33013, and 16-33015, respectively) on Oct. 17, 2016. The cases are jointly administered under Case No. 16-33008. The petitions were signed by William Vander Velde III, sole member and manager. Big Rock Ranch estimated assets at $500,000 to $1 million and liabilities at $100,000 to $500,000. Judge Carol A. Doyle is the case judge. The Debtors' attorneys are Harold D. Israel, Esq., and Sean P. Williams, Esq., at Goldstein & McClintock, LLLP. A&G Realty Partners, LLC was retained as the Debtors' Real Estate Advisors. ESPLANADE HL: May Use First Midwest's Cash Until Sept. 10 --------------------------------------------------------- The Carol A. Doyle of the U.S. Bankruptcy Court for the Northern District of Illinois has entered a tenth interim order authorizing Esplanade HL, LLC and its affiliated debtors to use cash collateral of First Midwest Bank until Sept. 10, 2017. A hearing to consider the entry of an eleventh interim cash collateral order will be held on Sept. 6, 2017, at 10:30 a.m. Big Rock Ranch, LLC, has agreed to make monthly payments of $1,828 to FMB, which payments will be due within seven days of the first of each month. In addition to all existing security interests and liens granted to and held by FMB in and to the prepetition collateral, as further adequate protection for the Debtor's use of the cash collateral on the terms and conditions of the tenth interim court order, but only to secure an amount equal to the collateral diminution, the Debtors grant FMB automatically and retroactively effective as of the Petition Date, valid, binding, and properly perfected postpetition security interests and replacement liens on the prepetition collateral. About Esplanade HL Esplanade HL, LLC, 2380 Esplanade Drive, LLC, 9501 W. 144th Place, LLC, and 171 W. Belvedere Road, and LLC, Big Rock Ranch, LLC, each filed Chapter 11 petitions (Bankr. N.D. Ill. Case Nos. 16-33008, 16-33010, 16-33011, 16-33013, and 16-33015, respectively) on Oct. 17, 2016. The cases are jointly administered under Case No. 16-33008. The petitions were signed by William Vander Velde III, sole member and manager. Big Rock Ranch estimated assets at $500,000 to $1 million and liabilities at $100,000 to $500,000. Judge Carol A. Doyle is the case judge. The Debtors' attorneys are Harold D. Israel, Esq., and Sean P. Williams, Esq., at Goldstein & McClintock, LLLP. A&G Realty Partners, LLC, was engaged as the Debtors' real estate advisors. EVERMILK LOGISTICS: Intends to File Chapter 11 Plan by November 11 ------------------------------------------------------------------ Evermilk Logistics LLC requests the U.S. Bankruptcy Court for the Southern District of Indiana for a 60-day extension of the time in which to file a Chapter 11 plan and solicit votes in connection with such plan, up to and including November 11, 2017 and January 10, 2018, respectively. Absent an extension, the Debtor's exclusive periods in which the Debtor has the exclusive right to file a Chapter 11 plan and solicit acceptances of such plan will expire on September 12, 2017 and November 11, 2017, respectively. The Debtor seeks additional time to continue negotiations with its primary lessors and suppliers on contract and lease cures and with the Internal Revenue Service. The Debtor intends to include these agreements, if reached, in the reorganization plan that allows for the Debtor's continued operations. No other extensions of the Debtor's Exclusive Periods have been requested by the Debtor. Objections to the request are due September 11, 2017. About Evermilk Logistics Evermilk Logistics LLC -- http://www.evermilklogistics.net/-- is a member managed Indiana limited liability company wholly owned by Teunis Jan Willemsen that operates a commercial milk hauling trucking business with its principal place of business at 6615 W. 500 N., Frankton, Indiana 46044. Evermilk hauls milk for local dairy farms that sell milk to Dairy Farmers of America. Evermilk has been taking milk to the Eastern and Central United States, and currently is picking up 20-25 tanker loads of milk each day. It currently employs over 60 driver and administrative or maintenance personnel. Evermilk Logistics LLC filed a Chapter 11 petition (Bankr. S.D. Ind. Case No. 17-03613), on May 15, 2017. The Petition was signed by Teunis Jan Willemsen, member. The case is assigned to Judge Jeffrey J. Graham. The Debtor is represented by Terry E. Hall, Esq., at Faegre Baker Daniels LLP. At the time of filing, the Debtor had $100,000 to $500,000 in estimated assets and $1 million to $10 million in estimated liabilities. No trustee or examiner has been appointed, and no committee has yet been appointed or designated. EXCEL STAFFING: May Obtain Financing From Stephen Brown, et al. --------------------------------------------------------------- The Hon. Keith L. Phillips of the U.S. Bankruptcy Court for the Eastern District of Virginia has granted Excel Staffing Services, Inc., permission to obtain post-petition financing from Stephen Brown, Edward Brown, Beverly Davis, Lydia Saboor, Eugene Thomas, and Bill Weber, nunc pro tunc to Aug. 10, 2017. The DIP Financing is necessary to allow the Debtor to pay the costs of operating its business as a going concern or otherwise manage its assets in the pursuit of reorganization in accordance with Chapter 11 of the U.S. Bankruptcy Code. Without court authorization for the Debtor to obtain DIP Financing, the Debtor will not be able to pay wages, salaries, taxes and other ongoing operating expenses in the ordinary course of its operations. Interruption of the Debtor's business in this manner will significantly harm the Debtor's estate and fundamentally undermine its reorganization efforts. The Lenders will have a perfected security interest in the respective identified receivable. A copy of the Order is available at: http://bankrupt.com/misc/vaeb16-35795-78.pdf As reported by the Troubled Company Reporter on July 31, 2017, the Debtor asked the Court to obtain DIP financing in an amount not to exceed the total amount of the Debtor's accounts receivable from the Lenders. The Debtor finances its business operations through contracts and the receivables generated therefrom. However, any cash flow will not provide funds to the Debtor until the time as receivables have been received. The receipt may be after a required payroll. The Financing requested will assist cash flow for the gap period. The terms of the Financing are: (a) Loan Amount: principal amount not to exceed the requisite identified receivable; (b) Interest Rate: interest will accrue on the outstanding principal balance at a rate equal to 0% per annum; (c) Payment Terms: all outstanding principal and interest will be due and payable without notice, demand or setoff on the earlier of (a) the day after the date the accounts receivable are collected, (b) conversion of the Debtor's Chapter 11 case to Chapter 7 and (c) the sale of substantially all of the Debtor's assets; and (d) Security: the Lender will have a perfected lien in the identified receivable. About Excel Staffing Services Excel Staffing Services, Inc., sought protection under Chapter 11 of the Bankruptcy Code (Bankr. E.D. Va. Case No. 16-35795) on Nov. 28, 2016. The petition was signed by Billie Brown, president. At the time of the filing, the Debtor estimated assets and liabilities of less than $500,000. The Debtor hired Tavenner & Beran PLC as bankruptcy counsel, and ReavesColey, PLLC, as special counsel. FALCO MOBILE: Has Until December 26 to File Reorganization Plan --------------------------------------------------------------- Judge Carla E. Craig of the U.S. Bankruptcy Court for the Eastern District of New York extend the time within which Falco Mobile Food LLC may exclusively file a plan of reorganization and solicit acceptances to such plan to December 26, 2017, and January 24, 2018, respectively. The Troubled Company Reporter has previously reported that the Debtor asked the Court to extend the time within which it may exclusively file a plan of reorganization and solicit acceptances to such plan to November 29, 2017 and January 24, 2018, respectively. Pursuant to the Court's Order dated May 19, 2017, the deadline for the filing of Proofs of Claim in this chapter 11 case was fixed at June, 23, 2017, and the Government Proof of Claims were due by August 25. As of July 1, a total of three claims have been filed. As such, the Debtor told the Court that it will need time to review and analyze claims filed in this case. The Debtor maintained that it cannot file a plan without first determining if additional governmental creditors will timely file a proof of claim as it will greatly affect the distribution to the unsecured creditor body. In addition, the Debtor told the Court that it has been currently focused on (a) attracting new investors and generating more income for the mobile food trucks, and (b) getting financing to restructure and pay off his creditors in full. The Debtor said the outcome of these processes would be the key component of any plan of reorganization filed by the Debtor. The Debtor believed that once it had a complete understanding of the amount of outstanding claims and once it has financing in place, it will be able to file a plan that provides for a substantial payment to its creditor body and which plan could be confirmed by the Court within a reasonable time period. About Falco Mobile Food Falco Mobile Food LLC sells retail food such as hot dogs, french fries, fish sandwiches, shrimps and drinks from a mobile unit at 320 Fulton Street, Brooklyn, New York. Falco Mobile Food sought protection under Chapter 11 of the Bankruptcy Code (Bankr. E.D.N.Y. Case No. 17-40860) on February 26, 2017. The petition was signed by Michael Falco, managing member. At the time of the filing, the Debtor had $50,000 to $100,000 in estimated assets and $100,000 to $500,000 in estimated liabilities. The Debtor is represented by Rachel S. Blumenfeld, Esq., at the Law Office of Rachel S. Blumenfeld. The case is assigned to Judge Carla E. Craig. FAMILY FOR LIFE: Names Glenn Forbes as Attorney ----------------------------------------------- The Family for Life Foundation seeks authorization from the U.S. Bankruptcy Court for the Northern District of Ohio to employ Glenn E. Forbes of Forbes Law LLC as bankruptcy counsel. The Debtor requires Forbes Law to: (a) advise the Debtor as to its rights, duties and powers as a Debtor in Possession; (b) prepare and file the Statements, Schedules, Plans and other documents and pleadings necessary to be filed by the Debtor in this case; (c) represent the Debtor at all hearings, meetings of creditors, conferences, trials, and other proceedings in this case; and (d) perform such other legal services as may be necessary in connection with this case. Forbes Law will be paid at these hourly rates: Attorney $300 Paralegals $125 Forbes Law will also be reimbursed for reasonable out-of-pocket expenses incurred. The Debtor will pay Forbes Law a $2,980.50 retainer for services performed or be performed under their contract. Glenn E. Forbes assured the Court that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtor and its estate. Forbes Law can be reached at: Glenn E. Forbes, Esq. FORBES LAW LLC 166 Main Street Painesville, OH 44077 Tel: (440) 357-6211 Fax: (440) 357-1634 E-mail: gforbes@geflaw.net The Family For Life Foundation filed a Chapter 11 bankruptcy petition (Bankr. N.D. Ohio Case No. 17-14759) on August 12, 2017, disclosing under $1 million in both assets and liabilities. The Debtor is represented by Glenn E. Forbes, Esq., at Forbes Law LLC. FEDERAL BUSINESS: Can Use Cash from Rental Income Until Oct. 31 --------------------------------------------------------------- Judge Brian F. Kenney of the U.S. Bankruptcy Court for the Eastern District of Virginia authorized Federal Business Corporation Government Division to use only the cash collateral derived from the rental income of its real properties until the earlier of Oct. 31, 2017, or the occurrence of an unsecured Event of Default. The Debtor, however, is prohibited from using any cash on hand as well as cash collateral derived from the proceeds of accounts receivable or sales of inventory. Any proceeds of accounts receivable or sales of inventory will remain on deposit in the Debtor-in-possession account. The Debtor's most recent cash report reflects cash on hand of approximately $777 for the week ending July 14, 2017. The Debtor has represented to the Court that payments on its accounts receivable are frozen by the Defense Finance Accounting Service. The Debtor owns these real properties: (a) 4219 Pine Lane, Alexandria, Virginia, and 6412 Holyoke Drive, Annandale, Virginia (the "Fairfax Properties"), each generates rental income of $1, 500 per month. Real. (b) 25055 Riding Plaza, Suite 120, Chantilly, Virginia (the "Loudon Property"), which generates rental income of $7,258 per month. The Debtor will use cash collateral from rental income from the Fairfax Properties to pay the following expenses of the Fairfax Properties in descending order of priority: 1. Premiums for casualty and liability insurance. 2. Real property taxes of $9,218 are due with respect to 4219 Pine Lane property and $9,115 are due with respect to 6412 Holyoke Drive property -- both are due on July 28, 2017. 3. Escrow for real property taxes due on December 5, 2017, not to exceed $1,015 per month. 4. If there will be any surplus rental income after satisfying aforementioned obligations, the Debtor will pay any such surplus to Fulton Bank, N.A. The Debtor will use cash collateral from rental income from the Loudon Properties to pay the following expenses of the Fairfax Properties in descending order of priority: a. The United Bank Deed of Trust -- United Bank has a first priority deed of trust on the Loudon Property, under which the Debtor must make monthly payments to United Bank of $4,436. b. Condominium assessments. c. Premiums for casualty and liability insurance. d. Escrow for real property taxes due on December 5, 2017, not to exceed $1,038 per month. e. The Debtor may use any surplus rental income of the Loudon Property to pay U.S. Trustee fees. Any surplus rental income after paying the U.S. Trustee fees will remain on deposit in the debtor-in-possession account. Tech Data Corporation asserts a lien on the Debtor's cash collateral based on its perfected first priority lien against the Debtor's accounts receivable. Fulton Bank, N.A., asserts a lien on the Debtor's cash collateral based on its first priority lien on the rental income from the Fairfax Properties and its perfected second priority lien on the Debtor's accounts receivable. In addition, the Debtor is directed to: (a) Deliver to Fulton Bank's counsel and Jack Frankel certificates of insurance on the Fairfax Properties. (b) Deposit all cash collateral into its debtor-in-possession account. (c) Maintain and keep current casualty and liability insurance for the real properties. (d) Timely pay all real property taxes on the real properties. (e) Deliver to Fulton Bank or any secured creditors such other financial information regarding the Debtor (f) Provide Tech Data and Fulton Bank reports showing cash on hand as of the previous week, itemized cash receipts and cash disbursements during the previous week, aged accounts receivable, post-petition accounts payable and inventory as of the end of the previous week. A full-text copy of the Order, dated August 15, 2017, is available at https://is.gd/9c6s2f Fulton Bank, N.A., is represented by: David S. Musgrave, Esq. Gordon Feinblatt LLC 233 East Redwood Street Baltimore, Maryland 21202 Email: dmusgrave@gfrlaw.com Tech Data Corporation is represented by: Thomas R. Fawkes, Esq. Goldstein & McClintock LLLP 111 W. Washington St., Suite 1221 Chicago, Illinois 60602 E-mail: tomf@goldmclaw.com About Federal Business Systems Federal Business Systems Corporation Government Division -- http://www.fbscgov.us.com/-- provides information technology solutions to federal, state and local governments, as well as commercial sector entities. FBSCGOV is headquartered in Wilmington, Delaware with offices in Loudoun County, Virginia and Centreville, Virginia. Federal Business Systems filed a Chapter 11 petition (Bankr. E.D. Va. Case No. 17-12128) on June 21, 2017. The petition was signed by Geoff Prosser, director. The case is assigned to Judge Brian F. Kenney. The Debtor is represented by David Charles Masselli, Esq., at David Charles Masselli PC. At the time of filing, the Debtor estimated $1 million to $10 million in assets and liabilities. FIRST NBC: Seeks November 7 Plan Exclusivity Extension ------------------------------------------------------ First NBC Bank Holding Company requests the U.S. Bankruptcy Court for the Eastern District of Louisiana to extend the exclusive periods in which the Debtor may file its Plan and obtain acceptance of its Plan, for an additional 60 days each, to November 7 and December 7, 2017, respectively. On April 28, 2017, shortly before the Debtor commenced this chapter 11 proceeding, First NBC Bank was closed by the Louisiana Office of Financial Institutions, which appointed the Federal Deposit Insurance Corporation as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Whitney Bank. At the time of closing, the FDIC took possession and control of all remaining assets and financial records held by the Bank. Those financial records included the financial records of the Debtor. As part of its agreement with the FDIC, Whitney Bank has maintained possession of the financial records on behalf of the FDIC -- which further complicates the Debtor's ability to access them. Recently, however, through cooperation of the FDIC and Whitney, the Debtor avers that it has been provided with a substantial amount of its financial records. The Debtor contends that on August 18, 2017, it has filed a motion for turnover of funds, which is nearly $600,000, currently in the possession of Whitney Bank. Assuming that the motion, unopposed by Whitney Bank, is granted, the Debtor will soon have the resources available to retain professionals to perform certain analyses required for the development of its Plan. Furthermore, due to the limited financial resources of the Debtor since the Petition Date, the Debtor claims that it has been unable to retain any professionals to review the financial information and provide analysis needed for the development of a Plan. About First NBC Bank Holding First NBC Bank Holding Company -- http://www.firstnbcbank.com/-- is a bank holding company, headquartered in New Orleans, Louisiana, which offers a broad range of financial services through its wholly-owned banking subsidiary, First NBC Bank, a Louisiana state non-member bank. First NBC Bank's primary market is the New Orleans metropolitan area and the Florida panhandle. It serves its customers from its main office located in the Central Business District of New Orleans, 38 full service branch offices located throughout its market and a loan production office in Gulfport, Mississippi. First NBC Bank sought protection under Chapter 11 of the Bankruptcy Code (Bankr. E.D. La. Case No. 17-11213) on May 11, 2017. The petition was signed by Lawrence Blake Jones, chief restructuring officer. The Debtor disclosed $6 million in assets and $65 million in liabilities as of May 10, 2017. The bankruptcy filing follows the appointment of the Federal Deposit Insurance Corporation as receiver of First NBC Bank, the Debtor's wholly owned subsidiary and principal asset, on April 28, 2017, for which the Debtor has previously announced that it does not expect any recovery. The case is assigned to Judge Elizabeth W. Magner. Steffes, Vingiello & McKenzie, LLC, is the Debtor's bankruptcy counsel. On May 18, 2017, the U.S. Trustee for Region 5 appointed an official committee of unsecured creditors. Jeffrey D. Sternklar LLC is the committee's legal counsel. No trustee or examiner has been appointed or designated in the case. FIRST WIVES: Seeks Dec. 18 Exclusive Plan Filing Period Extension ----------------------------------------------------------------- First Wives Entertainment Limited Liability Company asks the U.S. Bankruptcy Court for the Southern District of New York to further extend for approximately 90 days the exclusive period during which only the Debtor may file its plan of reorganization through December 18, 2017, and the concomitant exclusive period during which only the Debtor may solicit acceptances to the plan through February 16, 2018. A hearing will be held on September 13, 2017 at 11:00 a.m. to consider an extension of the Debtor's exclusive periods. Objections are due September 6. The Debtor's case was commenced as an involuntary case. As such, the Debtor did not prepare its filing. The Debtor claims that its books and records were in the hands of a petitioning creditor who refused to turn them over, which forced the Debtor to seek relief from the Court under a Bankruptcy Rule 2004 examination. Since the Order for Relief, the Debtor retained a chief restructuring advisor, to lead its restructuring efforts. The Debtor has also retained a financial advisor (Tarn Sublett) to review the books, records and documents of the Debtor. Mr. Sublett has expended time and resources to review and analyze the Debtor's books and records. The Debtor also obtained an Order establishing deadline for filing proofs of claim, pursuant to which, seventeen claims have been filed asserting over $17 million in liabilities. However, the Debtor believes these claims are significantly overstated. The Debtor has been working to obtain debtor-in-possession financing and to assemble an artistic, operational and financial plan to achieve an effective chapter 11 reorganization. Now that the Debtor is in possession of its own books, records and documents, the Debtor is planning for its reorganization, but needs more time to do so without the threat of a competing plan. About First Wives Entertainment First Wives Entertainment Limited Liability Company is the holder of the underlying rights to, and the vehicle through which First Wives Club, the iconic movie, is being developed as a musical for the Broadway and global stage, as well as for associated marketing and merchandising. On May 5, 2016, Aruba Productions LLC, Arnold Venture Fund L.P. and Edward H. Arnold filed an involuntary petition under Chapter 7 of the Bankruptcy Code against First Wives Entertainment Limited Liability Company. The Chapter 7 case was converted to a voluntary case under Chapter 11 (Bankr. S.D.N.Y. Case No. 16-11345) on Aug. 23, 2016. Allen G. Kadish, Esq. at DiConza Traurig Kadish LLP serves as legal counsel to the Debtor; Tarn Sublett as financial advisor; and Carol S. Mann of Mann Solutions Group LLC as chief restructuring advisor. No official committee of unsecured creditors, trustee or examiner has been appointed in the case. FORTERRA INC: S&P Lowers CCR to B- on Weak Performance & Margin --------------------------------------------------------------- Irving, Texas-based Forterra Inc. has faced significant headwinds in the first half of 2017, resulting in substantially lower EBITDA compared to S&P Global Ratings' prior expectations and much higher EBITDA leverage that the ratings agency believes will persist over the next 12 months. Thus, S&P Global Ratings lowered its corporate credit rating on Forterra Inc. to 'B-'. The rating outlook is stable. S&P said, "At the same time, we lowered our issue-level rating on Forterra's $1.25 billion first-lien term loan due 2023 to 'B-' (the same as the company's corporate rating). The '3' recovery rating on the first-lien term loan is unchanged, indicating our expectation of meaningful (50% to 70%; round estimate: 50%) recovery for lenders in the event of a payment default. We do not rate the company's $300 million ABL facility." The downgrade on Forterra's corporate credit rating reflects the company's large spike in debt leverage following a significant deterioration of profit margins. Through the first two quarters of 2017, Forterra has faced multiple headwinds affecting its margins across both its drainage pipe and water pipe segments. S&P said, "The stable outlook on Forterra reflects our view that while the company will remain highly leveraged for the foreseeable future, we expect interest coverage will be 2x and liquidity will remain adequate. Incorporated in our outlook is our view that the company has a favorable debt maturity structure with the nearest maturity in 2021, and amortization requirements are modest at only $12 million per year. Our base case scenario assumes the company will not undertake any further large-scale acquisitions or dividends during the next 12 months as the company focuses on integrating recent acquisitions and improving operating margins. "We could lower our rating if Forterra's adjusted EBITDA to interest coverage declined toward 1.5x or liquidity became constrained to the point where it became less than adequate. We view this as unlikely given EBITDA interest coverage is currently 2x. However, we believe such an event could result if margins declined by at least 2% as a result of weak municipal infrastructure spending or prolonged raw material, freight, and/or labor cost inflation. While these events could be the result of another economic recession, our economists view the chance of this occurring over the next 12 months as 15%-20%. "We could raise the rating on Forterra if the company significantly reversed its recent EBITDA declines, such that profitability improved and leverage reverted toward 5x over the next 12 months. While we believe this is unlikely to occur over the next 12 months, this could happen following EBITDA margins improving by at least 3% coupled with significant revenue growth of more than 10%." FOX RUN: U.S. Trustee Unable to Appoint Committee ------------------------------------------------- The Office of the U.S. Trustee on Aug. 24 disclosed in a court filing that no official committee of unsecured creditors has been appointed in the Chapter 11 case of Fox Run Creek Estates Holdings LLC. Headquartered in Miami Beach, Florida, Fox Run Creek Estates Holdings LLC filed for Chapter 11 bankruptcy protection (Bankr. S.D. Fla. Case No. 17-17221) on June 8, 2017, estimating its assets and liabilities at up to $50,000 each. Joann M. Hennessey, Esq., at Civil Justice Advocated serves as the Debtor's bankruptcy counsel. FULLCIRCLE REGISTRY: Incurs $194,000 Net Loss in Second Quarter --------------------------------------------------------------- FullCircle Registry, Inc., filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $194,386 on $294,898 of revenues for the three months ended June 30, 2017, compared to a net loss of $58,460 on $303,015 of revenues for the three months ended June 30, 2016. The Company reported a net loss of $363,938 on $614,201 of revenues for the six months ended June 30, 2017, compared to a net loss of $218,258 on $559,099 of revenues for the six months ended June 30, 2016. As of June 30, 2017, FullCircle had $4.44 million in total assets, $6.92 million in total liabilities and a total stockholders' deficit of $2.48 million. At June 30, 2017, the Company had total assets of $4,445,883 compared to $4,552,458 on Dec. 31, 2016. The Company had total assets consisting of $5,751 in cash, $34,260 of other current assets, $55,370 in utility and roofing repair deposits and $4,350,502 of net fixed assets in Georgetown 14, which includes accumulated depreciation of $2,082,202. Total assets of $4,552,458 as of Dec. 31, 2016 consisted of $20,112 in cash, $24,796 of other current assets and $4,467,664 of net fixed assets in Georgetown 14, which includes accumulated depreciation of $1,930,612. At June 30, 2017, the Company had $6,926,534 in total liabilities. Total liabilities include $210,041 in accounts payable, $89,976 in accrued expenses, $422,323 in accrued interest, $145,000 in notes payable, $1,352,332 of notes payable-related party, $44,726 of current portion of long-term debt and $4,543,136 of the long-term portion of its long-term debt. Net cash used by operating activities ending June 30, 2017, was $(237,344) compared to net cash provided by operating activities for the six months ended June 30, 2016, of $2,690. During the six months ended June 30, 2017, $(34,428) was used on investing activities, and $257,411 was provided by financing activities. For the same period in 2016, $0 was used in investing activities and $(15,244) was used by financing activities. "We are currently focused on increasing revenues from our operations and reducing debt through converting notes payable to common stock. We may also seek funding from securities purchases or from lenders offering favorable terms. No assurance can be given that we will be able to obtain the total capital necessary to fund our new business plans. In such an event, this may have a materially adverse effect on our business, operating results and financial condition," the Company said in the report. A full-text copy of the Form 10-Q is available for free at: https://is.gd/lha3r3 About FullCircle Registry Shelbyville, Kentucky-based FullCircle Registry, Inc. -- http://www.fullcircleregistry.co/-- targets the acquisition of small profitable businesses. FullCircle Registry is a holding company with three subsidiaries: FullCircle Entertainment, Inc., FullCircle Insurance Agency, Inc., and FullCircle Prescription Services, Inc. FullCircle's fully-owned subsidiary, FullCircle Entertainment, Inc., operates the Georgetown 14 Cinemas movie theater in Indianapolis, Indiana. The theater is currently transitioning to a new "Dine-in-Cinema LITE" business model. New food, recliner chairs and special events. Targeted completion is June, 2017. FullCircle Registry reported a net loss of $1.07 million on $1.087 million of revenues for the year ended Dec. 31, 2016, compared with a net loss of $695,700 on $1.14 million of revenues for the year ended Dec. 31, 2015. Somerset CPAs, P.C., issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2016. The Company has suffered recurring losses from operations and has a net capital deficiency that raises substantial doubt about its ability to continue as a going concern, the auditors noted. FUNERAL SERVICES: U.S. Trustee Unable to Appoint Committee ---------------------------------------------------------- An official committee of unsecured creditors has not yet been appointed in the Chapter 11 case of Funeral Services LLC as of August 23, according to a court docket. Funeral Services is represented by: Jacob D. DeGraaff, Esq. Henry DeGraaff & McCormick PS 1833 N. 105th Street, Suite 203 Seattle, WA 98133 Tel: 206-330-0595 Email: mainline@hdm-legal.com About Funeral Services LLC Funeral Services LLC -- http://jernsfuneralchapel.net-- is a family-owned provider of funeral and cremation services based in Bellingham, Washington. The Debtor has served the communities of Whatcom and Skagit Counties, along with those of Lower Mainland British Columbia. The Debtor sought protection under Chapter 11 of the Bankruptcy Code (Bankr. W.D. Wash. Case No. 17-12710) on June 15, 2017. Bradley Bytnar, owner and operator, signed the petition. At the time of the filing, the Debtor disclosed $951,812 in assets and $2.19 million in liabilities. GAWKER MEDIA: Johnson Claims Not Personal Injury Torts, Court Rules ------------------------------------------------------------------- Prior to the petition date in the chapter 11 cases of Gawker Media LLC, and its debtor affiliates, Charles C. Johnson and his company, Got News LLC, brought a lawsuit against the Debtor and two of its employees in California state court alleging various torts arising out of the publication of certain content on Gawker's web sites. Following the commencement of the Debtors' chapter 11 cases, Johnson and GotNews filed Proofs of Claim Nos. 53, 54, 202, 223, 246 and 298, one by each Claimant against each Debtor based on the same allegations as the California Action. The Debtors objected to the Claims. The Debtors filed Omnibus Objections raising host of issues but only two are addressed. First, are the "personal injury tort"claims, and second is whether the California anti-SLAPP statute applies to the Omnibus Objections. Judge Stuart M. Bernstein of the U.S. Bankruptcy Court for the Southern District of New York concludes that the Claims are not "personal injury tort" claims within the meaning of 28 U.S.C. section 157(b)(2)(B), and the special motion and discovery-limiting procedures under the California anti-SLAPP statute are inapplicable to these contested matters. Considering all the arguments and evidence presented, the Court readily concludes that the Claims do not assert "personal injury torts." Torts such as defamation, false light and injurious falsehood do not require proof of trauma, bodily injury or severe psychiatric impairment, and the Complaint does not allege that the Claimants suffered these injuries. The only "personal injury" that Johnson asserts is an "emotional injury," but incidental claims of emotional injury do not suffice to transform a tort claim into a personal injury tort when it otherwise would not be. While claims under section under 42 U.S.C. section 1983 can be more varied and involve a "personal injury," the Claimants' section 1983 claims do not involve any trauma, injury or impairment, and accordingly, do not constitute personal injury tort claims. For these reasons, the Court concludes that the "personal injury tort" exception to core jurisdiction set forth at 28 U.S.C. section 157(b)(2)(B) is limited to claims involving bodily injury, physical trauma and/or a severe "psychiatric impairment beyond mere shame and humiliation," and the Claims do not meet this definition. Accordingly, the Court determines it has core jurisdiction to liquidate the Claims. Regarding the second issue, as a general matter, the California anti-SLAPP statute will apply in diversity litigation "if state conflict-of-law principles call for a rule of decision (1) that would apply to the suit if it were brought in state court, (2) that is 'substantive' within the meaning of and (3) that is not displaced by a valid federal law or rule governing the same issue." The Court concludes that even though the California anti-SLAPP statute is substantive under Erie, the literal application of the special motion procedures conflict with Rule 56 (and Rule 12 to the extent it is made applicable), and does not apply to the disposition of the Omnibus Objection. A full-text copy of Judge Bernstein's Memorandum Decision dated August 21, 2017, is available at: http://bankrupt.com/misc/nysb16-11700-979.pdf Counsel for the Debtors and Reorganized Debtors: Gregg M. Galardi, Esq. D. Ross Martin, Esq. Peter Walkingshaw, Esq. ROPES & GRAY LLP 1211 Avenue of the Americas New York, New York 10036 gregg.galardi@ropesgray.com Ross.Martin@ropesgray.com Peter.walkingshaw@ropesgray.com Counsel for Charles C. Johnson and Got News LLC: Jay M. Wolman, Esq. RANDAZZA LEGAL GROUP, PLLC 100 Pearl Street, 14th Floor Hartford, Connecticut 06103 About Gawker Media Founded in 2002 by Nick Denton, Gawker Media is privately held online media company operating seven distinct media brands with corresponding websites under the names Gawker, Deadspin, Lifehacker, Gizmodo, Kotaku, Jalopnik, and Jezebel. The Company's various Websites cover, among other things, news and commentary on current events, politics, pop culture, sports, cars, fashion, productivity, technology and video games. Gawker sought bankruptcy protection after being ordered to pay $140.1 million in connection with an invasion of privacy lawsuit arising from publication of a report and commentary and accompanying sex video involving Terry Gene Bollea. New York-based Gawker Media, LLC -- fdba Gawker Sales, LLC, Gawker Entertainment, LLC, Gawker Technology, LLC and Blogwire, Inc. -- filed a Chapter 11 bankruptcy petition (Bankr. S.D.N.Y. Case No. 16-11700) on June 10, 2016. The Hon. Stuart M. Bernstein presides over the Debtors' cases. Affiliates Gawker Media Group, Inc., and Budapest, Hungary-based Kinja, Kft., filed separate Chapter 11 petitions (Bankr. S.D.N.Y. Case Nos. 16-11719 and 16-11718) on June 12, 2016. The cases are jointly administered. Gregg M. Galardi, Esq., David B. Hennes, Esq., and Michael S. Winograd, Esq., at Ropes & Gray LLP serve as counsel to the Debtors. William Holden at Opportune LLP serves as Gawkers' chief restructuring officer. Houlihan Lokey Capital, Inc., serves as the Debtors' investment banker. Prime Clerk LLC serves as claims, balloting and administrative agent. The Debtors estimated $50 million to $100 million in assets and $100 million to $500 million in liabilities. Mr. Denton filed for personal bankruptcy on Aug. 1, 2016, to protect himself from the legal judgment awarded to Hulk Hogan in an invasion-of-privacy lawsuit. The U.S. Trustee for Region 2 on June 24, 2016, appointed three creditors of Gawker Media LLC and its affiliates to serve on the official committee of unsecured creditors. The committee members are Terry Gene Bollea, popularly known as Hulk Hogan, Shiva Ayyadurai, and Ashley A. Terrill. The Committee retained Simpson Thacher & Bartlett LLP, in New York, as counsel. Counsel to US VC Partners LP, as Prepetition Second Lien Lender, are David Heller, Esq., and Keith A. Simon, Esq., at Latham & Watkins LLP. Counsel to Cerberus Business Finance, LLC, as DIP Lender, are Adam C. Harris, Esq., at Schulte Roth & Zabel LLP. GENERAL STEEL: Simon & Edward Replaces Friedman as Accountants -------------------------------------------------------------- General Steel Holdings, Inc., disclosed in a Form 8-K report filed with the Securities and Exchange Commission that it engaged Simon & Edward, LLP, as its principal accountant on April 7, 2017, and dismissed Friedman LLP from that role. The change in accountants was approved by the Company's Audit Committee. The audit report of Friedman on the Company's financial statements for the fiscal years ended Dec. 31, 2015, and 2014 contained no adverse opinion or disclaimer of opinion, but the report raised substantial doubt about the Company's ability to continue as a going concern. During the Company's two most recent fiscal years ended Dec. 31, 2015, and 2014, which were audited by Friedman, and for the year ended Dec. 31, 2016, and the subsequent interim period through April 7, 2017, the Company had no "disagreements" with Friedman on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, which disagreements, if not resolved to the satisfaction of Friedman, would have caused it to make reference in connection with its opinion to the subject matter of the disagreements. According to the Company, during its two most recent fiscal years ended Dec. 31, 2015, and 2014 and for the year ended Dec. 31, 2016, and the subsequent interim period through April 7, 2017, neither the Company, nor anyone on behalf of the Company consulted with S&E. About General Steel Holdings General Steel Holdings, Inc., headquartered in Beijing, China, produces a variety of steel products including rebar, high-speed wire and spiral-weld pipe. General Steel -- http://www.gshi-steel.com/-- has operations in China's Shaanxi and Guangdong provinces, Inner Mongolia Autonomous Region and Tianjin municipality with seven million metric tons of crude steel production capacity under management. Net loss attributable to the Company for the year ended Dec. 31, 2015, was $789 million as compared to $48.7 million for the same period in 2014. As of Dec. 31, 2015, General Steel had $35.8 million in total assets, $78.2 million in total liabilities, and a total deficiency of $42.4 million. Friedman LLP, in New York, NY, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2015, citing that the Company has an accumulated deficit, has incurred continued losses from operations, and has a working capital deficiency at Dec. 31, 2015. In addition, the majority of the Company's operating assets and business has been divested at year-end or in the first quarter of 2016 to related parties. These conditions raise substantial doubt about the Company's ability to continue as a going concern. GIRARD MANUFACTURING: Case Summary & 20 Top Unsecured Creditors --------------------------------------------------------------- Debtor: Girard Manufacturing, Inc. P.O. BOX 10378 San Juan, PR 00922-0378 Type of Business: Girard Manufacturing Inc. provides office furniture in San Juan, Puerto Rico. The Company offers desks chairs, modular systems, bookshelves, filing systems, and accessories, as well as online service and support. Chapter 11 Petition Date: August 24, 2017 Case No.: 17-05975 Court: United States Bankruptcy Court District of Puerto Rico (Old San Juan) Debtor's Counsel: Alexis Fuentes Hernandez, Esq. FUENTES LAW OFFICES, LLC PO Box 9022726 San Juan, PR 00902 Tel: (787) 722-5216 Fax: (787) 722-5206 E-mail: alex@fuentes-law.com Total Assets: $2.36 million Total Liabilities: $3.83 million The petition was signed by Jose A. Casal Seibezzi, president. The Debtor's list of 20 largest unsecured creditors is available for free at http://bankrupt.com/misc/prb17-05975.pdf GLAZER FOODS: U.S. Trustee Unable to Appoint Committee ------------------------------------------------------ The Office of the U.S. Trustee on Aug. 24 disclosed in a court filing that no official committee of unsecured creditors has been appointed in the Chapter 11 case of Glazer Foods, LLC, dba Alfonso Gourmet Pasta. Glazer Foods LLC filed a Chapter 11 petition (Bankr. S.D. Fla. Case No. 17-18532) on July 7, 2017, listing under $1 million in both assets and liabilities. Chad T Van Horn, Esq., at Van Horn Law Group, P.A., serves as counsel. GREAT FALLS DIOCESE: Sale of Langstan Villa Apts. for $1.9M Okayed ------------------------------------------------------------------ Judge Jim D. Pappas of the U.S. Bankruptcy Court for the District of Montana authorized the private sale by The Roman Catholic Bishop of Great Falls, Montana, a Religious Corporate Sole (Diocese of Great Falls), of Villa Apartments located at 1801 10th Avenue South, Great Falls, Cascade County, Montana, to Langstan Management, LLC, for $1,860,000. After payment of costs of title insurance and closing costs, all net sale proceeds will be paid to the Diocese and deposited the DIP general operating accounts, and that said sale proceeds will not be withdrawn from that account without further order of the Court. About Roman Catholic Bishop of Great Falls, Montana The Roman Catholic Bishop of Falls, Montana, a Montana Religious Corporate Sole, also known as the Diocese of Great Falls-Billings -- http://www.dioceseofgfb.org/-- filed a Chapter 11 bankruptcy petition (Bankr. D. Mont. Case No. 17-60271) on March 31, 2017. The petition was signed by Bishop Michael W. Warfel. In its petition, the Debtor disclosed $20.75 million in total assets and $14.78 million in total liabilities. The Hon. Benjamin P. Hursh presides over the case. Bruce Alan Anderson, Esq., at Elsaesser Jarzabek Anderson Elliott & MacDonald, CHTD.; and Gregory J. Hatley, Esq., at Davis Hatley Haffeman & Tighe PC, serves as counsel to the Debtor. NAI Business Properties and Matt Robertson have been employed as realtor. Pachulski Stang Ziehl & Jones LLP is the counsel to the official committee of unsecured creditors formed in the Debtor's case. HARRINGTON & KING: Cash Collateral Use Extended Until Sept. 1 ------------------------------------------------------------- The Hon. Deborah L. Thorne of the U.S. Bankruptcy Court for the Northern District of Illinois has entered an agreed order extending Harrington & King Perforating Co. and Harrington & King South Inc.'s authority to use of cash collateral through Sept. 1, 2017. Inland Bank & Trust has agreed to extend the terms of the Agreed 10th Interim Cash Collateral Order. The Court has also terminated the Debtors' exclusive period to obtain acceptances of their plan as of Aug. 17, 2017. The hearing on the motion is continued to Aug. 31, 2017 at 10:00 a.m. A full-text copy of the Order, dated Aug. 17, 2017, is available at https://is.gd/N0HOMG About The Harrington & King The Harrington & King Perforating Co., Inc., and Harrington & King South Inc. are in the business of manufacturing perforating metal sheets and rolled coils of varying gauges and types to produce hole patterns of various sizes, shapes, and spacing. Most of the work is done to customer specifications and consists of high value-added jobs, not typical of most metal punching. The products are used in automotive, acoustics, architecture, food and pharmaceutical straining and filtering, interior design, manufacturing, safety flooring, pollution control, transportation and mining cleaning and grading, electronics and other fields. Harrington & King Perforating Co. and Harrington & King South sought protection under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Ill. Case Nos. 16-15650 and 16-15651) on May 7, 2016. The petitions were signed by Greg McCallister, chief restructuring officer and chief operating officer. The cases are jointly administered under Case No. 16-15650. The Debtors each estimated assets and liabilities in the range of $1 million to $10 million. The cases are assigned to Judge Deborah L. Thorne. The Debtors engaged The Law Office of William J. Factor, Ltd., as bankruptcy counsel. The Debtors tapped Ulmer & Berne LLP as special counsel; Spiegel & Cahill, P.C., as special workers' compensation counsel; Beacon Management Advisors LLC as financial advisor; and Cushman & Wakefield of Illinois, Inc., as real estate broker. The official committee of unsecured creditors retained Goldstein & McClintock LLLP as its legal counsel and Conway MacKenzie, Inc., as its financial advisor. * * * On April 11, 2017, the Debtors filed a disclosure statement and Chapter 11 plan of reorganization. HAUBERT HOMES: Hearing on Disclosures Approval Set for Oct. 5 ------------------------------------------------------------- Judge Robert N. Opel of the U.S. Bankruptcy Court for the Middle District of Pennsylvania will convene a hearing on Oct. 5, 2017, at 10:00 a.m. consider approval of the amended disclosure statement filed by Haubert Homes, Inc. on August 16, 2017. October 2, 2017, is fixed as the last day for filing and serving written objections to the amended disclosure statement. About Haubert Homes Haubert Homes, Inc. sought protection under Chapter 11 of the Bankruptcy Code (Bankr. M.D. Pa. Case No. 15-03340) on August 3, 2015. The petition was signed by Don E. Haubert, Sr., president. The case is assigned to Judge Mary D. France. Robert E Chernicoff, Esq., at Cunningham Chernicoff & Warshawsky, P.C., serves as bankruptcy counsel. At the time of the filing, the Debtor estimated its assets and liabilities at $1 million to $10 million. The Official Committee of Unsecured Creditors of Haubert Homes, Inc., was appointed on September 11, 2015. The Committee hired Fox Rothschild LLP, as counsel, and Alan L. Frank Law Associates, P.C., as special counsel. HEALTH CARE TEMPORARIES: Sept. 25 Plan, Disclosures Hearing ----------------------------------------------------------- Judge Karen K. Brown of the U.S. Bankruptcy Court for the Southern District of Texas conditionally approved Health Care Temporaries, Inc.'s small business disclosure statement referring to its plan of reorganization filed on August 11, 2017. Sept. 20, 2017, is fixed as the last day for returning ballots. Sept. 18, 2017, is ﬁxed as the last day for ﬁling and serving written objections to the disclosure statement, and the last day for ﬁling and serving written objections to conﬁrmation of the plan. Sept. 25, 2017, at 11:00 a.m. is ﬁxed for the hearing on conﬁrmation of the plan and ﬁnal approval of the disclosure statement. The Troubled Company Reporter previously reported that Class 6 under the plan is comprised of all Allowed General Unsecured Claims against HCT. Holders of Allowed General Unsecured Claims will be paid Pro Rata in cash from yearly payments of $2,500 commencing Jan. 2, 2017 and with yearly payments reoccurring every 2nd of January for a term of five years. Payments and distributions under the Plan will be funded by HCT's existing Cash on hand, future income from ongoing operations, and cash injection from D.Anne Woods, HCT's Secretary and Vice President of Operations. A full-text copy of the Disclosure Statement is available at: http://bankrupt.com/misc/txsb17-30919-49.pdf About Health Care Temporaries Health Care Temporaries, Inc., filed a Chapter 11 bankruptcy petition (Bankr. S.D.Tex. Case No. 17-30919) on Feb. 12, 2017. Susan Tran, Esq., at Corral Tran Singh, LLP, serves as bankruptcy counsel. The Debtor's assets and liabilities are both below $1 million. IGI TRADING: U.S. Trustee Unable to Appoint Committee ----------------------------------------------------- The Office of the U.S. Trustee on Aug. 24 disclosed in a court filing that no official committee of unsecured creditors has been appointed in the Chapter 11 case of IGI Trading, LLC, dba IGI Playground. About IGI Trading, LLC dba IGI Playground IGI Trading, LLC dba IGI Playground filed a Chapter 11 bankruptcy petition (Bankr. S.D. Fla. Case No. 17-18734) on July 13, 2017. Mengjun Kristy Qiu, Esq., at Law Offices of Kristy Qiu, PA, serves as bankruptcy counsel. The Debtor's assets and liabilities are both below $1 million. IMMUNOGEN INC: Insufficient Capital Raises Going Concern Doubt -------------------------------------------------------------- ImmunoGen, Inc., filed its quarterly report on Form 10-Q, disclosing a net loss of $8.87 million on $39.02 million of total revenues for the three months ended June 30, 2017, compared with a net loss of $45.92 million on $7.41 million of total revenues for the same period in 2016. For the six months ended June 30, 2017, the Company listed a net loss of $26.21 million on $67.52 million of total revenues, compared to a net loss of $77.85 million on $27.12 million of total revenues for the same period in the prior year. The Company's balance sheet at June 30, 2017, showed $181.38 million in total assets, $354.61 million in total liabilities, and a stockholders' deficit of $173.23 million. The Company has incurred operating losses and negative cash flows from operations since inception, incurred a net loss of approximately $26.2 million during the six months ended June 30, 2017, and has an accumulated deficit of approximately $958.8 million as of June 30, 2017. The Company has primarily funded these losses through payments received from its collaborations and equity and convertible debt financing. To date, the Company has no product revenue and management expects operating losses to continue for the foreseeable future. At June 30, 2017, the Company had $150.3 million of cash and cash equivalents on hand. The Company anticipates that its current capital resources and expected future collaborator payments will enable it to meet its operational expenses and capital expenditures (operating plan) into the third quarter of calendar year 2018. Without such collaborator payments, the Company's existing capital resources at June 30, 2017 would not be sufficient to support the current operating plan through August 4, 2018, which is twelve months after the date that the June 2017 financial statements were issued. Because, neither receipt of future collaboration payments, nor management's contingency plans to mitigate the risk and extend cash resources through August 4, 2018, are considered probable, substantial doubt is deemed to exist about the Company's ability to continue as a going concern. A copy of the Form 10-Q is available at: https://is.gd/BpOj14 ImmunoGen, Inc., is a clinical-stage biotechnology company that develops targeted cancer therapeutics using its antibody-drug conjugate (ADC) technology. The Company is engaged in the discovery of monoclonal antibody-based anticancer therapeutics. An ADC with the Company's technology comprises an antibody that binds to a target found on tumor cells conjugated to one of its anti-cancer agents as a payload to kill the tumor cell once the ADC has bound to its target. Its product candidates include Mirvetuximab soravtansine; IMGN779; IMGN632; IMGN529, and Coltuximab ravtansine. The Company is based in Waltham, Mass. JACKSONVILLE BEAUTY: Taps Lansing Roy as Legal Counsel ------------------------------------------------------ Jacksonville Beauty Institute Inc. seeks approval from the U.S. Bankruptcy Court for the Middle District of Florida to hire legal counsel in connection with its Chapter 11 case. The Debtor proposes to employ Lansing Roy P.A. to, among other things, give legal advice regarding its duties under the Bankruptcy Code and assist in the preparation of a plan of reorganization. Kevin Paysinger, Esq., and William McDaniel, Esq., the attorneys who will be handling the case, will charge $325 per hour and $300 per hour, respectively. Paralegals will charge $75 per hour. The firm received from the Debtor a retainer in the amount of $14,000. Lansing Roy is "disinterested" as defined in section 101(14) of the Bankruptcy Code, according to court filings. The firm can be reached through: Kevin B. Paysinger, Esq. William B. McDaniel, Esq. Lansing Roy P.A. 1710 Shadowood Lane, Suite 210 Jacksonville, FL 32207 Phone: (904) 391-0030 About Jacksonville Beauty Institute Inc. Jacksonville Beauty Institute Inc. sought protection under Chapter 11 of the Bankruptcy Code (Bankr. M.D. Fla. Case No. 17-03022) on August 17, 2017. Judge Jerry A. Funk presides over the case. No trustee or examiner has been appointed in the Debtor's case. At the time of the filing, the Debtor disclosed that it had estimated assets of less than $100,000 and liabilities of less than $1 million. K&H RESTAURANT: Hires Gertler Law as Special Counsel ---------------------------------------------------- K&H Restaurant, Inc., seeks authority from the U.S. Bankruptcy Court for the Southern District of New York to employ Gertler Law Group, LLC, as special counsel to the Debtor. On December 12, 2016, the Debtor's Landlord commenced a commercial holdover proceeding in the Civil Court of City of New York, New York County Index number L/T 16N084613, seeking to recover possession of the property. The Debtor, through prior counsel, answered the Civil Court Complaint on February 20, 2017, asserting 28 affirmative defenses. The Debtor's management believes that the Debtor will be able identify and negotiate with prospective investors or lenders as a means to a successful conclusion of this case and an emergence from bankruptcy. The Debtor brought on a motion to assume the Lease -- Assumption Motion -- which the Landlord opposed, and after submissions of the parties and hearing before the Court, the Court entered an Order, dated July 27, 2017 denying the Assumption Motion. The Debtor immediately moved before the Court upon order to show cause for an order staying the effect of the Denial Order pending appeal. The Court entered the order on August 3, 2017. The Debtor intends to take an appeal from the Denial Order to the United States District Court for the Southern District of New York. K & H Restaurant requires Gertler Law to: (a) prepare, on behalf of the Debtor, all necessary and appropriate notices, briefs, records and other submissions to commence and perfect the Appeal; (b) appear before the District Court for oral argument on the Appeal and for any other hearings or conferences scheduled by the District court in connection with the Appeal; and (c) prepare and file any post argument submissions the District court may request or direct. Gertler Law will be paid at the hourly rate of $450 to $475. Gertler Law will be paid a retainer in the amount of $10,000 which was paid by Adel Kellel. The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. Richard G. Gertler, a partner of Gertler Law Group, LLC, assured the Court that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtor and its estates. Gertler Law can be reached at: Richard G. Gertler, Esq. GERTLER LAW GROUP, LLC 90 Merrick Avenue, Suite 400 East Meadow, NY 11554 Tel: (516) 228-3553 Fax: (516) 228-3396 E-mail: gertler@gertlerlawgroup.com About K&H Restaurant, Inc. K&H Restaurant, Inc. is a New York corporation that owns and operates a restaurant under the name of "Raffles Bistro" located in the ground floor of the Lexington Hotel. K&H Restaurant filed a Chapter 11 bankruptcy petition (Bankr. S.D.N.Y. Case No. 16-13151) on November 13, 2016, disclosing $500,000 to $1 million in estimated assets and $100,000 to $500,000 in estimated liabilities. The Petition was signed by Mr. Adel Kellel, its president. The Debtor tapped Andrew R. Gottesman, Esq. at Gottesman Law, PLLC as its new legal counsel, replacing the Law Office of Gabriel Del Virginia; and Jesse B. Schneider, Esq. at Davis & Gilbert LLP, Gertler Law Group, LLC, as special counsels. The Debtor also engaged Steven Schneiderman CPA PC as accountants. No trustee, examiner or official committee of unsecured creditors has been appointed in the case. KNIGHT ENERGY: U.S. Trustee Forms Two-Member Committee ------------------------------------------------------ Henry G. Hobbs, Jr., Acting U.S. Trustee for Region 5, on Aug. 24 appointed two creditors to serve on the official committee of unsecured creditors in the Chapter 11 cases of Knight Energy Holdings, LLC, and its debtor affiliates. The committee members are: (1) NLB Corp. Attn: Linda Helmick Interim Chairperson 29830 Beck Road Wixom, MI 48393 Tel: (248) 624-5555 ext. 10157 E-mail: Linda.helmick@NLBUSA.com (2) EDI Environmental Services, Inc. Attn: Clayton Courville P.O. Box 60726 Lafayette, LA 70596 Official creditors' committees have the right to employ legal and accounting professionals and financial advisors, at a debtor's expense. They may investigate the debtor's business and financial affairs. Importantly, official committees serve as fiduciaries to the general population of creditors they represent. About Knight Energy Holdings Knight Energy Holdings, LLC, supplies rental equipment and services for drilling, completion and well control activities, serving a diverse base of oil and gas operators. Knight is a multi-basin service provider with operations in nine states. Its services are available to clients in the United States, including the Permian, Eagle Ford, San Juan, Bakken, Cotton Valley, DJ, Haynesville, Alaska, and the Gulf Coast. In the past, Knight Energy also provided services internationally in Norway, the Netherlands, Iraq, UAE, Australia, and Colombia. There are presently no international operations. Knight Energy currently employs approximately 330 employees spread throughout the 18 active locations. Knight Energy Holdings, LLC, formerly Knight Oil Tools, LLC and its affiliates filed Chapter 11 petitions (Bankr. W.D. La. Lead Case No. 17-51014) on Aug. 8, 2017. The petitions were signed by Kelley Knight Sobiesk, member, director. At the time of filing, Knight Energy Holdings had $50 million to $100 million in estimated assets and $100 million to $500 million in estimated liabilities. The cases are assigned to Judge Robert Summerhays. Heller, Draper, Patrick, Horn & Dabney, L.L.C., serves as bankruptcy counsel to the Debtors while Opportune, LLP, serves as their crisis manager. Donlin, Recano & Company, Inc., is the claims, noticing and solicitation agent. LA CASA DE LA RAZA: MLG Filed Initial Brief in Bad Faith -------------------------------------------------------- La Casa de la Raza, Inc., filed a motion seeking the imposition of sanctions against MLG Leasing, Inc., MLG's president, Tomas Castelo, and MLG's attorney of record, Anthony Fischer. Judge Peter H. Carroll of the U.S. Bankruptcy Court for the Central District of California granted the motion in part and denied it in part. On May 5, 2017, Debtor filed its First Amended Chapter 11 Plan of Reorganization and First Amended Disclosure Statement Describing the Chapter 11 Plan. On May 10, 2017, MLG filed and served a 191-page document entitled Initial Brief in Opposition to and in Response to Second Disclosure Statement. Fischer, as attorney of record for MLG, prepared, signed and filed the Initial Brief in the case. By letter dated May 18, 2017, Debtor served Fischer with a copy of the Motion and advised Fischer, pursuant to Rule 9011(c)(1)(A), that the Motion would be filed in the event, not later than 21 days from Fischer's receipt thereof, the Initial Brief had not been withdrawn. When Fischer did not withdraw the Initial Brief, Debtor filed the Motion and set the matter for hearing on August 9, 2017. On July 26, 2017, MLG filed its Opposition to Debtor's Motion for Rule 11 Sanctions, to which Debtor replied on August 2, 2017. The Debtor asserts that MLG's Initial Brief is frivolous and that it was filed for an improper purpose. MLG denies that the Initial Brief is frivolous or filed for an improper purpose, arguing that the Initial Brief "includes important information regarding the lengthy history of events involving the secured creditor, important information regarding the Debtor's source of legal advice in 2015, important information regarding the insider status of creditors, and important information regarding Debtor’s failure to comply with single asset debtor rules." Judge Carroll finds that MLG's Initial Brief is a rambling diatribe unsupported by a declaration or other properly authenticated evidence. No competent attorney admitted practicing before this court would have signed and filed such a document in opposition to an amended disclosure statement under similar circumstances. MLG filed and served its Initial Brief ostensibly to point out perceived deficiencies in Debtor's Amended Disclosure Statement, but its claims are legally and factually baseless and made without a reasonable and competent inquiry. Its factual claims lack evidentiary support and its legal arguments lack merit. It is devoid of any relevant or meritorious objection to the Debtor’s Amended Disclosure Statement. The Court also finds that MLG's Initial Brief was filed in bad faith by MLG and Fischer for the specific purpose of frustrating or impeding Debtor's efforts to confirm a plan and to needlessly increase the Debtor's attorneys' fees and expenses in this case. The Debtor seeks an award of reasonable attorneys' fees of $13,218.75 for 35.25 hours of legal services, billed at an hourly rate of $375, incurred in presenting the Motion. The Debtor will be awarded as a monetary sanction against MLG and Fischer, jointly and severally, pursuant to Rule 9011(c)(1) reasonable attorneys' fees in the amount of $9,375, payable to Debtor’s counsel, to compensate Debtor for the cost of the following legal services, rendered at a rate of $375 per hour, which the court finds were reasonably and necessarily incurred in presenting the Motion. For the reasons stated, the Motion will be granted, in part, and denied, in part. The Debtor will be awarded the sum of $9,375.00 against MLG and Fischer, jointly and severally, as a monetary sanction pursuant to Rule 9011(c)(1), payable to Debtor's attorney not later than 60 days after the date of entry of the order on the Motion. A separate order will be entered consistent with this memorandum decision. A full-text copy of Judge Carroll's Memorandum Decision dated August 21, 2017, is available at: http://bankrupt.com/misc/cacb9-16-10331-244.pdf About La Casa de la Raza Headquartered in Santa Barbara, California, La Casa de la Raza, Inc., filed for Chapter 11 bankruptcy protection (Bankr. C.D. Calif. Case No. 16-10331) on Feb. 23, 2016, estimating its assets at between $1 million and $10 million and its liabilities at between $500,000 and $1 million. The petition was signed by Marisela Marquez, chief executive. Matthew M Clarke, Esq., at Christman Kelley & Clarke PC serves as the Debtor's bankruptcy counsel. LA PALOMA GENERATING: LNV Wants to Terminate Exclusivity Periods ---------------------------------------------------------------- LNV Corporation asks the U.S. Bankruptcy Court for the District of Delaware to terminate the exclusive periods during which only La Paloma Generating Co., LLC, and its affiliated debtors may file and solicit votes on a chapter 11 plan. A hearing on LNV's Motion will be held on August 30, 2017 at 10:00 a.m. Responses or objections to the Motion are due on or before August 28. LNV contends that these Cases are neither large nor complex. The Debtors exist solely to own what is effectively a single real property asset -- the La Paloma electricity generation facility. LNV further contends that the Debtors have no employees and outsource all of their operations. In addition, LNV contends the Debtors' capital structure is straightforward and, in light of the Intercreditor Agreement and LNV's sizeable deficiency claim, the Cases are essentially a two-party dispute between LNV and the Debtors. LNV alleges the Debtors have filed these cases, and taken every action in these cases to date, in an attempt to coerce LNV to not only take the plant, but also to inappropriately absorb all of the Debtors' regulatory compliance obligations so that junior stakeholders can avoid those liabilities. LNV notes that as all parties agreed during the last status conference before the Court, that the Debtors' precarious financial condition can not suffer more delay. LNV asserts that time is of the essence in these cases, considering that, on November 1, 2017, the Debtors have a regulatory compliance obligation requiring payment of approximately $5.8 million. LNV tells the Court that the Debtors justify their attempts to ignore LNV's concerns regarding the Debtors' plan (1) by relying on arguments purportedly raised by their Second Lien Lenders regarding the extent and validity of LNV's liens and (2) by imposing on themselves the role of "de facto mediator" in that dispute. LNV complains that the Debtors -- in a naked attempt to assist the Second Lien Lenders in breaching their agreement with LNV -- now premise their Plan on a pre-consummation litigation (for which there is no time to litigate to finality) over the extent and validity of LNV's liens on the plant's four gas turbines. Aside from being prohibited under the Intercreditor Agreement, such litigation would make it virtually impossible to satisfy the condition that the Debtors' Plan go effective by October 31, 2017 (the day before the Debtors' regulatory compliance obligations come due). LNV says the Debtors have engaged with LNV in plan negotiations, which have resulted in concessions by LNV that benefit other stakeholders and the estates as a whole. However, LNV contends that the Parties are at an impasse on two crucial issues -- litigation on the extent of LNV's liens and litigation on the Intercreditor Agreements. LNV asserts that more time will not solve this problem, but instead, it will only leave the estates more vulnerable to further value destruction. LNV claims that it has repeatedly provided the Debtors with the blueprint for a confirmable plan in these Cases, first in the form of the LNV Plan Term Sheet and then in the form of a draft plan. Despite LNV's blocking position in these Cases -- and against LNV's express wishes -- the Debtors filed the Debtors' Plan, which makes certain material elements of LNV's proposal subject to litigation. In addition, the Debtors' Plan deprives LNV of its bargained for credit bid rights and provides recoveries to Second Lien Lenders in contravention of the Intercreditor Agreement. While LNV has made clear that it cannot accept these terms, rendering confirmation a virtual impossibility. With nothing to lose, the Second Lien Lenders prefer to see if LNV will blink before the November 1 environmental compliance deadline. This is not good faith and it will not lead to confirmation of any plan of reorganization. LNV complains that in what is essentially a two-party dispute, eight months is more than enough time for the Debtors to propose a confirmable plan. LNV argues that through two different reorganization counsel, the Debtors have failed to come up with anything actionable, notwithstanding that LNV has literally handed the Debtors a draft plan that it would support. As such, LNV asserts that the Exclusive Periods should be terminated and that the plan process should be opened to LNV and allow the sole material economic stakeholder to present a viable resolution to these Cases before time runs out. About La Paloma Generating La Paloma Generating Company, LLC, a D.C.-based merchant power generator, and its affiliates La Paloma Acquisition Co, LLC, and CEP La Paloma Operating Company, LLC, filed Chapter 11 bankruptcy petitions (Bankr. D. Del. Case Nos. 16-12700 to 16-12702) on Dec. 6, 2016. The petitions were signed by Niranjan Ravindran, as the Debtors' authorized person. La Paloma Generating estimated $100 million to $500 million in assets and $500 million to $1 billion in liabilities. The Hon. Christopher S. Sontchi presides over the cases. The Debtors are represented by John J. Rapisardi, Esq., and George A. Davis, Esq., at O'Melveny & Myers LLP, as lead bankruptcy counsel; and Mark D. Collins, Esq., Andrew Dean, Esq., and Jason M. Madron, Esq., at Richards, Layton & Finger, P.A., as Delaware counsel. Lawyers at Curtis, Mallet-Prevost, Colt & Mosle LLP serve as conflicts counsel. Jefferies LLC serves as the Debtors' financial advisor and investment banker, while their claims and noticing agent is Epiq Bankruptcy Solutions. Alvarez & Marsal North America, LLC, is the financial advisor. Maria Aprile Sawczuk has been appointed fee examiner in the bankruptcy case. On Aug. 2, 2017, the Debtors filed a Chapter 11 Plan and Disclosure Statement. LEXINGTON HOSPITALITY: U.S. Trustee Forms 5-Member Committee ------------------------------------------------------------ The Office of the U.S. Trustee on August 23 appointed five creditors to serve on the official committee of unsecured creditors in the Chapter 11 case of Lexington Hospitality Group LLC. The committee members are: (1) C Worth Inc.—Interim Chair Patti Siwula, General Manager 1403 Versailles Road Lexington, KY 40504 Phone: (859) 269-5964 Email: psiwula@cworthsuperstore.com (2) Smithers Sign Company, Inc. William or Robert Smithers P.O. Box 4597 Lexington, KY 40544 Phone: (859) 233-0467 (3) Graham Interiors, LLC Keith Graham 1975 Harrodsburg Road Lexington, KY 40503 Phone: (859) 277-8383 Email: grahaminteriors@yahoo.com (4) Dunn & Tackett Glass, LLC Peggy Dunn 4242 Georgetown Road Lexington, KY 40511 Phone: (859) 254-8666 Email: Pdunn26031@aol.com (5) Drinkswell Service Co. Edward Bullen 1201 Story Avenue, Suite 128 Louisville, KY 40206 Phone: (859) 753-0642 Email: ed@drinkswell.net Official creditors' committees have the right to employ legal and accounting professionals and financial advisors, at a debtor's expense. They may investigate the debtor's business and financial affairs. Importantly, official committees serve as fiduciaries to the general population of creditors they represent. About Lexington Hospitality Headquartered in Aurora, Illinois, Lexington Hospitality Group LLC -- http://www.clarionhotellexingtonky.com/-- owns the Clarion Hotel Conference Center South, a hotel located at 5532 Athens Boonesboro Road Lexington, Kentucky, known as Clarion Hotel Conference Center South. The Hotel, located in the heart of the bluegrass and 'Horse Capital of the World,' has 149 well-appointed guest rooms, an indoor heated pool and hot tub, a seasonal outdoor pool, a fitness center and an on-site restaurant and bar. Lexington Hospitality filed for Chapter 11 bankruptcy protection (Bankr. E.D. Ky. Case No. 17-51568) on Aug. 3, 2017, estimating its assets and liabilities at between $1 million and $10 million each. The petition was signed by Kenneth Moore/Janee Hotel Corporation, manager. Judge Gregory R. Schaaf presides over the case. Laura Day DelCotto, Esq., Jamie L. Harris, Esq., and Sara A. Johnston, Esq., at Delcotto Law Group PLLC, serve as the Debtor's bankruptcy counsel. LINCOLN PARK, MI: S&P Affirms 'BB' LTGO Debt Rating --------------------------------------------------- S&P Global Ratings affirmed its 'BB' underlying rating (SPUR) on Lincoln Park, Mich.'s limited-tax general obligation (GO) debt. "The stable outlook reflects our view that Lincoln Park's operating results are improving after implemented budget adjustments. We think that prospects for a fuller recovery of Lincoln Park's creditworthiness will be impeded by the distressed funded status of its pension plans and uncertainty over the OPEB lawsuit," said S&P Global Ratings credit analyst Anna Uboytseva. Pension, other postemployment benefits, and debt costs currently comprise 40.5% of the budget, leaving little margin for error should revenues, expenditures, or pension assumptions fall short of projections given the already limited capacity to cut spending. Furthermore, city's two largest pension plans are poorly funded (24% and 19%). At such low funded levels, we believe there is a risk that one or more of the pension systems could enter insolvency in a sustained bear market. The outstanding bonds are secured by the city's full faith and credit with an agreement to levy ad valorem property taxes within statutory and constitutional tax limitations applicable to the city. The pledge is limited to the extent that the city does not have the power to levy additional taxes in excess of statutory limitations. Given the city's lack of taxing flexibility and just adequate budgetary flexibility, the rating on the limited-tax GO bonds is one notch below the unlimited-tax GO rating on the city. The 'BB' limited-tax GO rating reflects our assessment of the following credit factors: -- Very weak economy, with significant population decline, yet access to a broad and diverse metropolitan statistical area; -- Weak management, despite "standard" financial policies and practices under our Financial Management Assessment methodology; -- Adequate budgetary performance, with operating surpluses in the general fund and at the total governmental fund level in fiscal 2016. However, results are expected to moderate in the near future, particularly as fixed costs continue to rise and capital needs mount; -- Adequate budgetary flexibility, with an available fund balance in fiscal 2016 of 11.6% of operating expenditures, as well as limited capacity to reduce expenditures; -- Strong liquidity, with total government available cash at 60.4% of total governmental fund expenditures and 17.3x governmental debt service, but access to external liquidity we consider limited; -- High fixed charges and chronically underfunded pension obligations, despite a very strong debt profile; and -- Strong institutional framework score. LUKE'S LOCKER: Seeks October 23 Extension of Plan Filing Period --------------------------------------------------------------- Luke's Locker, Inc., 2L Austin, LLC, and The Quality Lifestyle I, Ltd., ask the U.S. Bankruptcy Court for the Eastern District of Texas to extend the exclusive deadline to file a chapter 11 plan until and including October 23, 2017, as well as the exclusive deadline to confirm a chapter 11 plan until and including December 22, 2017. The Debtors believe that this extension will give their stores time to recover from the negative publicity of the pre-petition closings and the bankruptcy filing; and give them the ability to structure a plan that is in the best interest of the creditors, the estates, and the Debtors. The Debtors relate that after the bankruptcy filing, they have permanently closed their Austin, Highland Village, Houston, Katy, Woodlands, Southlake, and Plano stores and ultimately rejected the store leases associated with those closed locations. The Debtors also closed their corporate office and rejected their central distribution warehouse lease. The Debtors currently intend to continue operating only their Dallas and Fort Worth stores. The Debtors further relate that since the filing of this Bankruptcy Case, the Debtors and their restructuring team have implemented significant changes to the way the Debtors manage and operate their business -- these changes have drastically improved the efficiency of the Debtors' business and the Debtors' profitability. However, the Debtors' pre-petition store closings and bankruptcy filing were highly publicized, and while the Debtors' sales and operations are recovering, the Debtors expect that it will take additional time before the Debtors' reputation recovers from the stigma associated with the pre-petition store closings and subsequent bankruptcy filing and for their operations and sales to stabilize. The Debtors also expect to be able to better ascertain the profitability of their stores and have a better idea of what amount will be available to pay creditors from future projected operations under a plan of reorganization over the next 60 days. As such, the Debtors believe that the additional time requested will allow them to better project the future profitability of their remaining stores, which will aid in framing a chapter 11 plan. The Debtors claim that creditors will also benefit from the requested extension because, by obtaining a better understanding of the Debtors' future prospects, the Debtors will be better able to ensure that any plan they propose will be feasible and will maximize the payment to all of its creditors. About Luke's Locker Incorporated Luke's Locker Incorporated, owner of Luke's Locker fitness and running stores in Texas, and its affiliates sought Chapter 11 protection (Bankr. E.D. Tex. Lead Case No. 17-40126) on Jan. 24, 2017. The petitions were signed by Matthew Lucas, president and CEO. The cases are assigned to Judge Brenda T. Rhoades. Melissa S. Hayward, Esq., at Franklin Hayward LLP, in Dallas, serves as the Debtors' counsel. Joseph Sullivan serves as chief restructuring officer. The Debtor tapped Rosen Systems, Inc. to sell surplus assets by auction. Luke's Locker estimated $1 million to $10 million in assets and liabilities. No trustee or examiner has been appointed in the Debtors' cases. M & J ENERGY: Case Summary & 20 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: M & J Energy Group, LLC 5431 Hwy. 90 E Broussard, LA 70518 Type of Business: Founded in 2006, M & J Energy Group, LLC -- https://www.mjenergygroup.com -- is an oil and natural gas company in Broussard, Louisiana. The Company provides hydrostatic testing, torquing, bolting and construction services. M & J Energy Group is currently working in Texas, Louisiana, Gulf of Mexico, and Florida while having also done work in Pennsylvania, West Virgina, Wyoming, Oklahoma, Ohio, and Mississippi. M & J Energy currently has three offices locations that are able to provide a full range of services with the corporate office being in Scott, Louisiana and two satellite offices in Houma, Louisiana and Ingelside, Texas. M&J Energy Group is ISNetworld certified and also DISA certified. Chapter 11 Petition Date: August 24, 2017 Case No.: 17-51115 Court: United States Bankruptcy Court Western District of Louisiana (Lafayette) Judge: Hon. Robert Summerhays Debtor's Counsel: Kent H. Aguillard, Esq. H. KENT AGUILLARD P.O. Drawer 391 Eunice, LA 70535 Tel: (337) 457-9331 E-mail: kaguillard@yhalaw.com Estimated Assets: $0 to $50,000 Estimated Liabilities: $1 million to $10 million The petition was signed by Slade Sanders, owner. The Debtor's list of 20 largest unsecured creditors is available for free at http://bankrupt.com/misc/lawb17-51115.pdf MICHAEL L. FOSTER: Properties to Be Sold at Sept. 22 Auction ------------------------------------------------------------ Fidelity Title Agency of Alaska, as Trustee, will sell real property of Michael L. Foster Properties, LLC, at an auction on Sept. 22, 2017, in the main lobby of the Anchorage Boney Courthouse at 303 K Street, Anchorage, Alaska. The sale may be held with other sales as the Trustee may conduct which shall begin at 10:00 a.m. and continue until complete. Michael L. Foster Properties has been declared in default under a loan agreement with Alaska USA Federal Credit Union, as Beneficiary. The address of the property is 13111 and 13135 Old Glenn Highway, Eagle River, AK 99577. The property to be sold at auction are: PARCEL 1: Lot Three (3), MCALPINE SUBDIVISION, according to the official plat thereof, filed under Plat Number 82-235, in the records of the Anchorage Recording District, Third Judicial District, State of Alaska. PARCEL 2: Lot Two (2), CROSS ESTATES, according to the official plat thereof, filed under Plat Number 73-171, in the records of the Anchorage Recording District, Third Judicial District, State of Alaska. The amount due and owing by Michael L. Foster Properties to the Credit Union as of June 23, 2017, is $1,548,450.54, which includes $1,518,296.24 in principal, $7,365.19 in interest from May 15, 2017, $1,103.18 late charges, $14,430.95 other beneficiary fees and costs advanced, $145.00 release and termination fees, $3,292.98 foreclosure costs and $3,817.00 attorney fees. This balance will continue to accrue interest after June 23, 2017, at a rate in accordance with a Promissory Note until the time of sale. Other charges, as allowed under the loan documents, may also accrue until the time of sale. Payment must be made at the time of sale in cash or by cashier's check. The Credit Union may enter a credit offset bid consisting of sums due it under the deed of trust security agreement and note. Title to the real property will be conveyed by the trustee's quitclaim deed without warranties of title. If default has arisen by failure to make payments required under the Promissory Note and/or the deed of trust, the default may be cured and this sale terminated if (1) payment of the sum then in default, other than principal that would not then be due if default had not occurred, and attorneys and other foreclosure fees and costs actually incurred by the beneficiary and trustee due to the default is made at any time before the sale date stated in this notice or to which the sale is postponed, and (2) when notice of default has been recorded two or more times previously under the same deed of trust described and the default has been cured, the trustee does not elect to refuse payment and continue the sale. To determine the current amount required to be paid to cure the default and reinstate the payment terms of the note, you may call Sheli Dodson 646-6670 or send an e-mail to s.dodson@alaskausa.org MILK HOUSE: Sizemore Buying Yadkin Property for $142K ----------------------------------------------------- The Milk House, LLC, asks the U.S. Bankruptcy Court for the Middle District of North Carolina to authorize the sale of Chimney Field, more specifically Lots 1 through 11 and Lots 13 through 27, and all of Chimney Field Road, as shown on that plat recorded in Plat Book 9, at Pages 836-837, Yadkin County Registry, to Bobby Sizemore for $141,720. The Debtor was formed to develop Chimney Field into a residential subdivision. On Aug. 18, 2017, the Debtor and the Buyer entered into an Offer to Purchase and Contract – Vacant Lot/Land, under which the Debtor agreed to sell and the Buyer agreed to purchase the Property for a total price of $141,720. The Debtor proposes to sell the Property free and clear of any and all liens, encumbrances, claims, rights, and other interest. A copy the Sale Agreement attached to the Motion is available for free at: http://bankrupt.com/misc/Milk_House_59_Sales.pdf In the Debtor's opinion, the Agreed Purchase Price represents the market value of the Property. The Debtor will be seeking the consent of Carolina Farm Credit, ACA and Triangle Chemical Co., the only creditors asserting a security interest in the Property, to the Sale. The Debtor proposes to pay to Farm Credit all the net Sale proceeds. The Debtor asks that the Bankruptcy Rule 6004(h) does not apply and any order authorizing sale of the Property not be stayed for 14 days after the entry of such approval. The Purchaser can be reached at: Bobby Sizemore 133 Melrose Lane Mooresville, NC 28117 About The Milk House Headquartered in Yadkinville, North Carolina, The Milk House, LLC, is a single asset real estate. The Milk House filed for Chapter 11 bankruptcy protection (Bankr. M.D.N.C. Case No. 17-50460) on April 27, 2017, estimating its assets at between $500,000 and $1 million and liabilities at between $1 million and $10 million. The petition was signed by Walter Shore, managing member. Judge Lena M. James presides over the Debtor's case. The Debtor's attorneys: Thomas W. Waldrep, Jr. Jennifer B. Lyday WALDREP LLP 101 S. Stratford Road, Suite 210 Winston-Salem, NC 27104 Telephone: (336) 717-1440 Facsimile: (336) 717-1340 Contemporaneously, the Debtor's members Wiley Walter Shore and Shelby Jean Matthews Shore also sought bankruptcy petition. No official committee of unsecured creditors has been appointed in the case. MINT LEASING: Examiner Hires Porter Hedges as Counsel ----------------------------------------------------- William G. West, the examiner of The Mint Leasing, Inc., seeks authority from the U.S. Bankruptcy Court for the Southern District of Texas to employ Porter Hedges LLP, as counsel to the Examiner. The Examiner requires Porter Hedges to: (a) prepare, advise and represent the Examiner in connection with a depositions, Rule 2004 examinations or trial testimony in this case; (b) assist, advise and represent the Examiner with the ongoing exercise of his duties following the hearing on the motion to convert; (c) prepare on behalf of the Examiner all necessary pleadings and other legal papers; (d) to the extent that the Examiner has cause to file a third status report, assist the Examiner in the preparation of the report; (e) assist the Examiner in administrative matters; and (f) provide other legal advice and services, as requested by the Examiner, from time to time. Porter Hedges will be paid at these hourly rates: Partners $425-$750 Associates $275-$450 Paralegals $205-$240 Porter Hedges will also be reimbursed for reasonable out-of-pocket expenses incurred. Aaron J. Power, a partner of Porter Hedges LLP, assured the Court that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtor and its estates. Porter Hedges can be reached at: Aaron J. Power, Esq. PORTER HEDGES LLP 1000 Main Street, 36th Floor Houston, TX 77002 Tel: (713) 226-6000 Fax: (713) 228-1331 About The Mint Leasing, Inc. Houston, Texas-based The Mint Leasing, Inc., leases automobiles and fleet vehicles throughout the United States. Its founder and partial owner is Jerry Parish. An involuntary chapter 7 petition was filed against The Mint Leasing, Inc. by four petitioning creditors on March 30, 2017 (Bankr. S.D. Tex. Case No. 17-31878). By agreement from the petitioning creditors and the Debtor, an order for relief was entered on April 18, 2017, converting the case to one under chapter 11 of the Bankruptcy Code. The Debtor hired FisherBroyles, LLP, as general bankruptcy counsel. The Debtor tapped Brian M. Akkashian, Esq., at Paesano Akkashian Apkarian, P.C., as its special counsel. By agreement between the petitioning creditors and the Debtor, William West was appointed as an examiner in the case. The Office of the U.S. Trustee on July 5, 2017, disclosed in a court filing that no official committee of unsecured creditors has been appointed in the Chapter 11 case of The Mint Leasing, Inc. MJS AUTOMOTIVE: Case Summary & Unsecured Creditor ------------------------------------------------- Debtor: MJS Automotive, Inc 3411 Route 9 Freehold, NJ 07728 Type of Business: MJS Automotive is a provider of automotive repair and maintenance services whose principal assets are located at 3411 US Highway 9 Freehold, New Jersey. It is a small business debtor as defined in 11 U.S.C. Section 101(51D). Chapter 11 Petition Date: August 24, 2017 Case No.: 17-27224 Court: United States Bankruptcy Court District of New Jersey (Trenton) Judge: Hon. Kathryn C. Ferguson Debtor's Counsel: Elias Abilheira, Esq. ABILHEIRA & ASSOCIATES, P.C. 34 East Main Street Freehold, NJ 07728 Tel: 732-866-1883 E-mail: elias@anlegal.net Total Assets: $85,000 Total Liabilities: $63,453 The petition was signed by Michael Saviano, president. The Debtor's list of top 20 unsecured creditors has a single entry: 3411 Route 9 LLC holding an unsecured claim of $63,453. A full-text copy of the petition is available for free at: http://bankrupt.com/misc/njb17-27224.pdf MOREHEAD MEMORIAL: Hires Nelson Mullins as Co-Counsel ----------------------------------------------------- The Official Committee of Unsecured Creditors of Morehead Memorial Hospital, seeks authorization from the U.S. Bankruptcy Court for the Middle District of North Carolina to retain Nelson Mullins Riley & Scarborough LLP, as co-counsel to the Committee. The Committee requires Nelson Mullins to: (a) advice with respect to the Committee's duties, responsibilities and powers in the bankruptcy case; (b) investigate and analyze of the acts, conduct, and financial condition of the Debtor, its assets and liabilities, the operation of its business, and the desirability of continued business operations versus liquidation, the desirability of appointment of a trustee or an examiner, or conversion of the case under Chapter 7, and the feasibility of a chapter 11 plan; (c) consult, discuss, and negotiate with the trustee or debtor-in possession, and other interested parties concerning the administration of the case, and the provisions of a chapter 11 plan; (d) investigate, analyze, and evaluate of potential claims of the estate, including claims for recovery of avoidable transfers under the Bankruptcy Code; (e) assist in the post-petition financing arrangements presently or hereafter proposed by the Debtor; (f) assist in the proposed sales of the Debtor's assets and distribution of any proceeds thereof; (g) represent the Committee at any hearings or conferences with regard to administration of the case, and the preparation and filing of appropriate papers in connection therewith; (h) prepare and file of such motions, complaints, applications, and other pleadings and papers as may be appropriate to represent the Committee; and (i) represent and assist with regard to any and all other matters relating to the administration of the case, operation of the Debtor's business, and protection of the rights and positions of the unsecured creditors and the estate. Nelson Mullins will be paid at these hourly rates: Terri L. Gardner, Partner $450 Valerie Morrison, Partner $450 Lee Hart, Associate $375 Leslie Mize, Partner $340 Karie Rankine, Paralegal $120 Nelson Mullins will also be reimbursed for reasonable out-of-pocket expenses incurred. Terri L. Gardner, a partner of Nelson Mullins Riley & Scarborough LLP, assured the Court the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and (a) is not creditors, equity security holders or insiders of the Debtor; (b) has not been, within two years before the date of the filing of the Debtor' chapter 11 petition, directors, officers or employees of the Debtor; and (c) does not have an interest materially adverse to the interest of the estate or of any class of creditors or equity security holders, by reason of any direct or indirect relationship to, connection with, or interest in, the Debtor, or for any other reason. Nelson Mullins can be reached at: Terri L. Gardner, Esq. NELSON MULLINS RILEY & SCARBOROUGH LLP 4140 Parklake Avenue Raleigh, NC 27612 Tel: (919) 329-3882 E-mail: gardner@nelsonmullins.com About Morehead Memorial Hospital Founded in 1924, Morehead Memorial Hospital -- http://www.morehead.org/-- is a North Carolina non-profit corporation that owns and operates a 108-bed general acute care community hospital on a 22-acre campus located at 117 East Kings Highway, Eden, North Carolina. Within the Hospital Real Property, Morehead Memorial also owns and operates a 121-bed skilled nursing facility. It also owns several other parcels of real property located in Eden that are contiguous to, or in the general vicinity of, the Hospital Real Property. Morehead Memorial Hospital filed for Chapter 11 bankruptcy protection (Bankr. M.D.N.C. Case No. 17-10775) on July 10, 2017, estimating its assets and liabilities at between $10 million and $50 million each. The petition was signed by Dana M. Weston, its chief executive officer. Judge Benjamin A. Kahn presides over the case. Thomas W. Waldrep, Jr., Esq., Jennifer B. Lyday, Esq., and Francisco T. Morales, Esq., at Waldrep LLP serve as the Debtor's bankruptcy counsel. The Debtor employed Womble Carlyle Sandridge & Rice, LLP as special counsel; Grant Thornton LLP as financial advisor; Hanlon Hammond Camp LLC as investment banker and operational and strategic advisor; and Donlin, Recano & Company, Inc. as claims and noticing agent. On July 24, 2017, William Miller, the bankruptcy administrator for the Middle District of North Carolina, appointed an official committee of unsecured creditors. The Committee hired the law firms of Nelson Mullins Riley & Scarborough LLP, and Sills Cummis & Gross, P.C., as co-counsel. MOUNTAIN CREEK RESORT: Intends to File Ch.11 Plan by January 2018 ----------------------------------------------------------------- Mountain Creek Resort, Inc. and its debtor-affiliates ask the U.S. Bankruptcy Court for the District of New Jersey to extend by 120 days the exclusive periods during which the Debtors have the right to file a chapter 11 plan and to solicit votes thereon through January 10, 2018, and March 13, 2018, respectively. A hearing on the Debtors' Motion will be held on September 6, 2017, at 10:00 a.m. Objections are due August 30. Since the Petition Date, the Debtors have been focused on the smooth transition into the Chapter 11 process. During the first 120 days of their Chapter 11 Cases, the Debtors have devoted significant effort into operational issues such as obtaining DIP Financing and the use of cash collateral, in addition to negotiating and obtaining court approval of agreements with critical vendors, utility providers, convenience class creditors, and insurance providers. Additionally, the Debtors spent a significant amount of time on compiling the voluminous schedules and statements, meeting all requirements in the UST Guidelines, and complying with the weekly and other periodic reporting requirements under the interim DIP Financing and Cash Collateral. While the Debtors have been focused on addressing these time-critical and significant matters during the early stages of the Chapter 11 Cases, the Debtors have not yet had the opportunity to develop and formulate a chapter 11 plan and negotiate the terms of the plan with key stakeholders in these Chapter 11 Cases. Moreover, the general claims bar date and governmental bar date established in these Chapter 11 Cases are September 11, 2017 and November 13, 2017, respectively. Thus, not only have the Debtors been occupied over various time-sensitive matters in their Chapter 11 Cases, but the Debtors have not yet been able to conduct a fulsome review of the claims that will be treated under a chapter 11 plan because creditors may still be filing additional claims. Accordingly, an extension of the Exclusivity Periods will help ensure that the Debtors have ample time to assess these options before formulating, negotiating, and filing a chapter 11 plan. About Mountain Creek Resort, Inc. Mountain Creek Resort Inc. owns and operates the Mountain Creek Resort, a four-season resort located in Vernon, New Jersey. The Resort is the New York/New Jersey Metro area's closest ski resort with 167 skiable acres on four mountain peaks, 1,040 vertical feet, 46 trails, and 11 lifts. The Resort also operates and manages the Appalachian Hotel and the Black Creek Sanctuary townhomes. Mountain Creek Resort, Inc., and five affiliated debtors filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code (Bankr. D.N.J. Lead Case No. 17-19899) on May 15, 2017. The cases are pending before the Honorable Judge Stacey L. Meisel, and jointly administered. Mountain Creek estimated $10 million to $50 million in assets and debt. The Debtors hired Lowenstein Sandler LLP as bankruptcy counsel; Houlihan Lokey Capital, Inc., as business consultant and investment banker; and Prime Clerk LLC as claims and noticing agent. On May 24, 2017, the Office of the U.S. Trustee appointed an official committee of unsecured creditors. Trenk, DiPasquale, Della Fera & Sodono, P.C., represents the committee as bankruptcy counsel. NEBFYNEDYNE 15: Seeks Authorization to Use Cash Collateral ---------------------------------------------------------- NEBFYNEDYNE 15, Inc., seeks authorization from the U.S. Bankruptcy Court for the District of Nebraska to use cash collateral. The Debtor operates a restaurant known as Louise's Wine Dive and generates income from sales of food and liquor. As of the Petition Date, the Debtor has $10,185 in its operating account. The Debtor contemplates effectuating the monetization and disposition of its assets within 10 weeks of the Petition Date. As such, the Debtor's access and use of cash collateral is imperative to preserve liquidity of its assets as it proceeds to effectuate its restructuring. The Debtor has one secured lender with a lien on cash collateral -- First State Bank, which holds a blanket lien on all assets of the Debtor. In exchange of its use of cash collateral, the Debtor intends to: (a) Continue making payments to First State Bank in the amount of $3,424 per month. (b) Pay any prepetition wages and post-petition wages of its employees, since payment of wages is essential to the continued operation of the Debtor. (c) Pay prepetition vendors as it is essential to the continued operation of the Debtor. (d) Pay the Nebraska Department of Revenue and the City of Omaha for prepetition and postpetition sales and restaurant taxes -- the Debtor has set aside collected sales taxes and City Restaurant fees in an Accrual Account at First State Bank. (e) Pay the usual operating expenses of the restaurant as those expenses come due. A full-text copy of the Debtor's Motion, dated Aug. 17, 2017, is available at https://is.gd/jQoYkF NEBFYNEDYNE 15, Inc.'s counsel: Bruce C. Barnhart, Esq. 12100 West Center Road, Suite 519 Omaha, Nebraska 68144 Telephone: (402) 934-4430 About NEBFYNEDYNE 15 NEBFYNEDYNE 15 is a Nebraska Corporation that operates a restaurant known as Louise's Wine Dive and has 20 employees. NEBFYNEDYNE 15 filed a Chapter 11 petition (Bankr. D. Neb. Case No. 17-81147) on Aug. 15, 2017. The Debtor is represented by Bruce C. Barnhart, Esq. No trustee, examiner or statutory committee has been appointed in this Chapter 11 case. NET ELEMENT: Nasdaq Grants Request for Continued Listing -------------------------------------------------------- Net Element announced that the Nasdaq Hearings Panel has granted the Company's request for the continued listing of its common stock on Nasdaq, subject to the Company providing the Panel evidence of compliance with all requirements for continued listing on The Nasdaq Capital Market not later than Oct. 20, 2017. On Aug. 18, 2017, the Company received a letter from the Nasdaq Listing Qualifications Staff advising that the Staff had determined that, because the Company's Quarterly Report on Form 10-Q for the period ended June 30, 2017, reported stockholders' equity of $1,975,435 is less than the $2.5 million requirement for continued listing, the Company no longer complies with Nasdaq Listing Rule 5550(b), which serves as an additional basis for delisting the Company's securities from The Nasdaq Stock Market. In anticipation of this deficiency, the Company addressed its plan for demonstrating compliance with the stockholders' equity requirement at its hearing before the Panel, which was the basis for the decision of the Panel to grant the Company an exception through Oct. 20, 2017, to comply with the stockholders' equity and $1.00 bid price requirements. Notwithstanding, the Staff was required to provide the Company with formal notice of the stockholders' equity issue following the filing of the June 30 Form 10Q. While the Staff's letter affords the Company the opportunity to make a further submission to the Panel addressing this issue, the Company does not intend to so given that the Panel has already granted the Company the requested exception. Notwithstanding the foregoing, there can be no assurance that the Company will cure its stockholders' equity or bid price deficiencies. "We are working diligently to comply with Nasdaq's listing requirements while improving shareholder value," commented Oleg Firer, CEO of Net Element. About Net Element Net Element, Inc. (NASDAQ: NETE) -- http://www.netelement.com/-- operates a payments-as-a-service transactional and value-added services platform for small to medium enterprise in the US and selected emerging markets. In the U.S. it aims to grow transactional revenue by innovating SME productivity services such as its cloud based, restaurant and retail point-of-sale solution Aptito. Internationally, Net Element's strategy is to leverage its omni-channel platform to deliver flexible offerings to emerging markets with diverse banking, regulatory and demographic conditions such as UAE, Kazakhstan, Kyrgyzstan and Azerbaijan where initiatives have been recently launched. Net Element was named in 2016 by South Florida Business Journal as one of the fastest growing technology companies. Net Element reported a net loss of $13.61 million on $54.28 million of total revenues for the 12 months ended Dec. 31, 2016, compared to a net loss of $13.32 million on $40.23 million of total revenues for the 12 months ended Dec. 31, 2015. Daszkal Bolton LLP's report on the Company's consolidated financial statements for the year ended Dec. 31, 2016, contains an explanatory paragraph expressing substantial doubt as to the Company's ability to continue as a going concern. The independent auditors stated that the Company's recurring losses from operations and working capital and accumulated deficits raise substantial doubt about its ability to continue as a going concern. NEW JERSEY HEADWEAR: Sept. 2 Plan and Disclosures Hearing --------------------------------------------------------- Judge John K. Sherwood of the U.S. Bankruptcy Court for the District of New Jersey conditionally approved New Jersey Headwear Corp.'s small business disclosure statement accompanying its plan of reorganization, dated August 11, 2017. Sept. 9, 2017, is fixed as the last day for filing and serving written objections to the Disclosure Statement and confirmation of the Plan, and the last day for filing written acceptances or rejections of the Plan. A hearing will be held on Sept. 26 at 10:00 a.m. for final approval of the Disclosure and for confirmation of the Plan before the Honorable John K. Sherwood, U.S. Bankruptcy Court, District of New Jersey, 50 Walnut Street, Newark, New Jersey 07102, in Courtroom 3D. About New Jersey Headwear New Jersey Headwear Corp. maintains its offices at 305 3rd Avenue West #5, NJ 07107. The Debtor manages and operates a manufacturing business producing headwear, tote bags and other textiles. New Jersey Headwear Corp. sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D. N.J. Case No. 16-31777) on November 14, 2016. The petition was signed by Mitchell Cahn, president. The case is assigned to Judge Stacey L. Meisel. At the time of the filing, the Debtor estimated its assets and liabilities at $1 million to $10 million. The Debtor is represented by William S. Katchen, Esq. at the Law Offices of William S. Katchen, LLC. The Debtor employs Edward Bond, Esq. and Bederson, LLP as financial advisor. NEW JERSEY MICRO-ELECTRONIC: Sept. 19 Disclosure Statement Hearing ------------------------------------------------------------------ The Hon. John K. Sherwood of the U.S. Bankruptcy Court for the District of New Jersey will convene a hearing on Sept. 19, 2017, to consider the adequacy of the disclosure statement filed by New Jersey Micro-Electronic Testing, Inc. Written objections to the adequacy of the Disclosure Statement must be filed no later than 14 days prior to the hearing. About New Jersey Micro-Electronic Testing Based in Clifton, NJ, New Jersey Micro-Electronic Testing, Inc. -- http://njmetmtl.com/-- provides professional electronic component testing to the commercial, military, aerospace, industrial and automotive fields worldwide for nearly 40 Years. The Company posted gross revenue of $2.25 million in 2016 compared to gross revenue of $2.59 million in 2015. New Jersey Micro-Electronic Testing filed a Chapter 11 petition (Bankr. D.N.J. Case No. 17-18977) on May 1, 2017. Giacomo Federico, president, signed the petition. The case is assigned to Judge John K. Sherwood. The Debtor is represented by Matteo Percontino, Esq. and Bruce J. Wisotsky, Esq. at Norris, McLaughlin & Marcus, P.A. At the time of filing, the Debtor had $483,782 in assets and $4.68 million in liabilities. NORTEL NETWORKS: SNMP Software Rightfully Licensed for Use ---------------------------------------------------------- SNMP Research International, Inc., and SNMP Research, Inc., filed a complaint against Nortel Networks Inc. and affiliated entities concerning Schedule 1, an agreement between SNMPRI and Nortel, which refers to and incorporates terms of an earlier license between SNMPRI and Bay Networks. Judge Kevin Gross of the U.S. Bankruptcy Court for the District of Delaware held a two-day trial on May 11 and 12, 2017, to determine whether certain software was licensed for use or distribution by Nortel with respect to products after June 20, 2003. The issue which the Court addressed is narrow but the parties presented considerable evidence at the Trial. The issue or the Schedule 1 Issue is "whether the SNMP software was licensed for use or distribution under Schedule 1A of the Nortel License . . . with respect to any products after June 20, 2003." Judge Gross ruled in Nortel's favor concerning the meaning and effect of Schedule 1. The Court recognizes SNMP's principal arguments that: (1) Schedule 1 is unambiguous and therefore extrinsic evidence is unwarranted; (2) the merger whereby Nortel acquired Bay Networks was a reverse triangular merger, and, accordingly the Bay License was not transferable to Nortel without SNMPRI's consent; and (3) Tremblay (of Nortel) testified that Schedule 1 terminated three years after its effective date and the license was thereby terminated. The Court rejects these arguments. First, while the individual words, "terminate," "no further effect" and "three years" are unambiguous, the record of the case establishes that Schedule 1 was the result of a more involved set of facts which render Schedule 1 ambiguous. Second, whether California law impacted Nortel's rights in a reverse triangular merger is not the point. What matters is what SNMP and Nortel did after the merger, how they treated their respective rights. Third, Tremblay's involvement was relatively late in the SNMPRI - Nortel relationship. Finally, it is clear to the Court that under New York law, SNMPRI's and Nortel's conduct establish that there was an implied-in-fact agreement which governs the relationship between Nortel and SNMPRI and, in turn, establish that Nortel had the right to use the software after June 2003. The parties' relationship would otherwise be counterproductive. The Court, therefore, finds in Nortel's favor. Schedule 1 confers a lifetime royalty buy out on "[a]ll products of units and projects originating from what was Bay Networks" that existed during its three-year term. Competent extrinsic evidence overwhelmingly confirms this meaning and effect. The Court will, therefore, rule in Nortel's favor concerning the meaning and effect of Schedule 1. In addition, if the Court had not ruled in Nortel's favor concerning the meaning and effect of Schedule 1, the record of the parties' conduct and statements after June 2003 would establish an implied-in-fact contract with the same effect. The Court directs Nortel to prepare an Order giving effect to the foregoing Opinion, to share the Order with SNMP, and to submit the Order under certification. A full-text copy of Judge Gross' Opinion dated August 21, 2017, is available at: http://bankrupt.com/misc/deb09-10138-18446.pdf Counsel for Debtors and Debtors in Possession: Derek C. Abbott, Esquire Andrew R. Remming, Esquire Tamara K. Minott, Esquire Andrew J. Roth-Moore, Esquire MORRIS, NICHOLS, ARSHT & TUNNELL LLP 1201 North Market Street P.O. Box 1347 Wilmington, Delaware 19801 dabbott@mnat.com aremming@mnat.com tminott@mnat.com aroth-moore@mnat.com -and- Lisa M. Schweitzer, Esquire David H. Herrington, Esquire CLEARY GOTTLIEB STEEN & HAMILTON LLP One Liberty Plaza New York, New York 10006 lschweitzer@cgsh.com dherrington@cgsh.com Counsel for SNMP Research, Inc. and SNMP Research International, Inc: Norman L. Pernick, Esquire Nicholas J. Brannick, Esquire COLE SCHOTZ P.C. 500 Delaware Avenue, Suite 1410 Wilmington, DE 19801 npernick@coleschotz.com nbrannick@coleschotz.com -and- G. David Dean, Esquire COLE SCHOTZ P.C. 300 E. Lombard Street, Suite 1450 Baltimore, MD 21202 ddean@coleschotz.com -and- Richard S. Busch, Esquire KING & BALLOW LAW OFFICES 315 Union Street, Suite 1100 Nashville, TN 37201 rbusch@kingballow.com -and- John L. Wood, Esq. EGERTON, MCAFEE, ARMISTEAD & DAVIS, P.C. 900 S. Gay Street Knoxville, TN 37902 JWood@emlaw.com About Nortel Networks Headquartered in Ontario, Canada, Nortel Networks Corporation and its various affiliated entities provided next-generation technologies, for both service provider and enterprise networks, support multimedia and business-critical applications. Nortel Networks Limited was the principal direct operating subsidiary of Nortel Networks Corporation. On Jan. 14, 2009, Nortel Networks Inc.'s ultimate corporate parent Nortel Networks Corporation, NNI's direct corporate parent Nortel Networks Limited and certain of their Canadian affiliates commenced a proceeding with the Ontario Superior Court of Justice under the Companies' Creditors Arrangement Act (Canada) seeking relief from their creditors. Ernst & Young was appointed to serve as monitor and foreign representative of the Canadian Nortel Group. That same day, the Monitor sought recognition of the CCAA Proceedings in U.S. Bankruptcy Court (Bankr. D. Del. Case No. 09-10164) under Chapter 15 of the U.S. Bankruptcy Code. That same day, NNI and certain of its affiliated U.S. entities filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Case No. 09-10138). In addition, the High Court of England and Wales placed 19 of NNI's European affiliates into administration under the control of individuals from Ernst & Young LLP. Other Nortel affiliates have commenced and in the future may commence additional creditor protection, insolvency and dissolution proceedings around the world. On May 28, 2009, at the request of administrators, the Commercial Court of Versailles, France, ordered the commencement of secondary proceedings in respect of Nortel Networks S.A. On June 8, 2009, Nortel Networks UK Limited filed petitions in U.S. Bankruptcy Court for recognition of the English Proceedings as foreign main proceedings under Chapter 15. U.S. Bankruptcy Judge Kevin Gross presides over the Chapter 11 and 15 cases. Mary Caloway, Esq., and Peter James Duhig, Esq., at Buchanan Ingersoll & Rooney PC, in Wilmington, Delaware, serves as Chapter 15 petitioner's counsel. In the Chapter 11 case, James L. Bromley, Esq., and Howard S. Zelbo, Esq., at Cleary Gottlieb Steen & Hamilton, LLP, in New York, serve as the U.S. Debtors' general bankruptcy counsel; Derek C. Abbott, Esq., at Morris Nichols Arsht & Tunnell LLP, in Wilmington, serves as Delaware counsel. The Chapter 11 Debtors' other professionals are Lazard Freres & Co. LLC as financial advisors; and Epiq Bankruptcy Solutions LLC as claims and notice agent. The U.S. Trustee appointed an Official Committee of Unsecured Creditors in respect of the U.S. Debtors. An ad hoc group of bondholders also was organized. An Official Committee of Retired Employees and the Official Committee of Long-Term Disability Participants tapped Alvarez & Marsal Healthcare Industry Group as financial advisor. The Retiree Committee is represented by McCarter & English LLP as Delaware counsel, and Togut Segal & Segal serves as the Retiree Committee. The Committee retained Alvarez & Marsal Healthcare Industry Group as financial advisor, and Kurtzman Carson Consultants LLC as its communications agent. Several entities, particularly, Nortel Government Solutions Incorporated and Nortel Networks (CALA) Inc., have material operations and are not part of the bankruptcy proceedings. As of Sept. 30, 2008, Nortel Networks Corp. reported consolidated assets of $11.6 billion and consolidated liabilities of $11.8 billion. The Nortel Companies' U.S. businesses are primarily conducted through Nortel Networks Inc., which is the parent of majority of the U.S. Nortel Companies. As of Sept. 30, 2008, NNI had assets of about $9 billion and liabilities of $3.2 billion, which do not include NNI's guarantee of some or all of the Nortel Companies' about $4.2 billion of unsecured public debt. Since the commencement of the various insolvency proceedings, Nortel has sold its business units and other assets to various purchasers. Nortel has collected roughly $9 billion for distribution to creditors. Of the total, $4.5 billion came from the sale of Nortel's patent portfolio to Rockstar Bidco, a consortium consisting of Apple Inc., EMC Corporation, Telefonaktiebolaget LM Ericsson, Microsoft Corp., Research In Motion Limited, and Sony Corporation. The consortium defeated a $900 million stalking horse bid by Google Inc. at an auction. The deal closed in July 2011. Nortel has filed a proposed plan of liquidation in the U.S. Bankruptcy Court. The Plan generally provides for full payment on secured claims with other distributions going in accordance with the priorities in bankruptcy law. The trial on how to divide proceeds among creditors in the U.S., Canada, and Europe commenced on Sept. 22, 2014. The question of how to divide $7.3 billion raised in the international bankruptcy of Nortel Networks Corp. was answered on May 12, 2015, by two judges, one in the U.S. and one in Canada. According to The Wall Street Journal, Justice Frank Newbould of the Ontario Superior Court of Justice in Toronto and Judge Kevin Gross of the U.S. Bankruptcy Court in Wilmington, Del., agreed on the outcome: a modified pro rata split of the money. NORTH AMERICAN LIFTING: S&P Affirms CCC+ CCR on Elevated Leverage ----------------------------------------------------------------- Houston-based lifting services provider North American Lifting Holdings Inc., parent of TNT Crane & Rigging Inc., continues to display elevated leverage and has not made meaningful progress toward reducing the outstanding balance under its revolver through the first half of 2017, according to s&P Global Ratings. As a result, S&P Global Ratings affirmed its 'CCC+' corporate credit rating on North American Lifting Holdings Inc. (TNT). The outlook is negative. S&P said, "At the same time, we affirmed our 'CCC+' issue-level rating on the company's senior secured first-lien credit facility (consisting of a $75 million revolver and $470 million first-lien term loan). The '3' recovery rating on the facility is unchanged, indicating our expectation for meaningful (50%-70%; rounded estimate: 50%) recovery in the event of a payment default. "Additionally, we affirmed our 'CCC-' issue-level rating on the company's $185 million second-lien term loan. The '6' recovery rating on the debt is unchanged, indicating our expectation for negligible (0%-10%) recovery in the event of a payment default. "The rating reflects our belief that TNT's financial commitments remain unsustainable in the long term and the increased risk that the company may violate the net leverage covenant under its revolving credit facility over the next 12 months, absent an improvement in its business and economic conditions or further capital injections from its financial sponsor. Headroom under the 4.5x maximum leverage covenant has remained very thin with compliance aided by $7 million in demand notes from the company's sponsor and management team in the first half of 2017. Despite this additional capital and potential for further infusions in coming quarters, we expect headroom to remain extremely thin over the next year. The rating also incorporates the increased refinancing risk associated with the company's $75 million revolver due in November 2018 and our expectation that it will generate negligible to negative free cash flow through 2018. We believe that cash flow would need to recover significantly to support a refinancing of the facility. "The negative outlook on North American Lifting Holdings reflects our belief that the company's capital structure is unsustainable in the long term and incorporates increased risk that the company may borrow more from its revolving credit facility than we expect, resulting in a covenant violation. In addition, it incorporates the increased refinancing risk given the company's revolver maturity in 2018, high debt leverage, and current negative free cash flow. "We could lower our ratings if we expect the company to draw on its revolver to the extent that its triggers the senior net leverage covenant and a covenant breach appears likely. We would also lower our ratings by the end of 2017 if the company has not made significant progress toward refinancing its revolver due in November 2018. This could further increase refinancing risk and result in a potential debt restructuring or default within 12 months. "Although unlikely, we could revise our outlook to stable if the company's end markets stabilize such that we expect it to generate significant positive free cash flow over the next 12 months, reducing reliance upon its revolving credit facility and alleviating refinancing risk associated with the 2018 revolver maturity." -- North American Lifting Holdings operates in the competitive and cyclical equipment rental market. S&P's simulated default scenario contemplates a continued precipitous decline of oil and natural gas prices, which results in a significant decrease in E&P activities. Significant and lengthy delays on maintenance projects could come from a slowdown in the company's end markets amid broad-based macroeconomic weakness. S&P assumes that the revolving credit facility is 25% drawn at default, the level at which the senior net leverage covenant would be in effect. -- S&P said, "In our default scenario, we also incorporate a significant loss of market share due to increased competitive pressures from other crane or equipment rental companies. In addition, the company's highly leveraged financial risk profile also limits its flexibility to cope with an unexpected and severe operational decline, leading to a payment default in 2018." -- S&P said, "Under our scenario, the company's net asset value is approximately $274 million. We believe this value would be sufficient to provide meaningful (50%-70%; rounded estimate: 50%) recovery for the first-lien lenders and negligible (0%-10%) recovery for the second-lien lenders in the event of a payment default. The recovery ratings on North American Lifting Holdings' first- and second-lien facilities reflect their senior positions in the debt structure and relative priorities in lenders' claims in the security package." -- LIBOR at default is 2.5%; -- 25% usage on the existing revolving credit facility; and -- All debt has about six months of interest outstanding at default. -- Net asset value: $258 million -- Valuation split (obligors/nonobligors): 100%/0% -- Value available to first-lien debt claims (collateral/noncollateral): $258 million -- Secured first-lien debt claims: $490 million --Recovery expectations: 50%-70% (rounded estimate: 50%) -- Value available to second-lien debt claims (collateral/noncollateral): N/A -- Secured second-lien debt claims: $195 million --Recovery expectations: 0%-10% (rounded estimate: N/A) NUTRITION RUSH: Has Until October 20 to File Reorganization Plan ---------------------------------------------------------------- Judge Gary Spraker of the U.S. Bankruptcy Court for the District of Nevada extended the exclusive period within which Nutrition Rush, LLC must file a plan of reorganization through October 20, 2017, and solicit acceptances for that plan through November 18, 2017. As reported by the Troubled Company Reporter on July 25, 2017, the Debtor sought further exclusivity extensions in order to: (a) avoid premature formulation of a chapter 11 plan, and (b) ensure the plan that would be eventually formulated will take into account all the interests of the Debtor and its creditors. The Debtor operated its retail stores in three states, and the regulated health industry and cyclical nature of the health supplement market make it difficult to project the Debtor's future financial projections to formulate its plan. In order to successfully resolve this Chapter 11 case, the Debtor said the true scope of the Debtor's losses in the current market must be determined and the payment of valid debts must be provided for on a basis that preserves the Debtor's strong core business operations. The Debtor told the Court that although great strides have been made since the Petition Date, much remains to be done. The Debtor said that negotiations with its lenders and creditors, including the Nevada Department of Taxation and the Internal Revenue Service, still remain in the early stages and are ongoing. The Debtor claimed that resolution of these issues would be a necessary predicate to the confirmation of any plan of reorganization in this Chapter 11 case. About Nutrition Rush Nutrition Rush, LLC, is a health supplement retailer operating in Nevada, California, and previously, in Arizona. Nutrition Rush filed a Chapter 11 petition (Bankr. D. Nev. Case No. 16-16771) on Dec. 22, 2016. The petition was signed by Laura Kuveke, its managing member. The case is assigned to Judge Laurel E. Davis. The Debtor is represented by Bryan A. Lindsey, Esq., and Samuel A. Schwartz, Esq., at Schwartz Flansburg PLLC. At the time of filing, the Debtor estimated $500,000 to $1 million in assets and $1 million to $10 million in liabilities. No creditors' committee has been appointed in this Chapter 11 case by the U.S. Trustee. OYSTER COMPANY: Disclosure Statement Hearing Set for Sept. 27 ------------------------------------------------------------- The U.S. Bankruptcy Court for the Eastern District of Virginia will schedule a hearing on Sept. 27, 2017, at 2:00 p.m. to consider the adequacy of the information contained in the proposed disclosure statement filed by Oyster Company of Virginia, LLC on July 5, 2017. Any objections or proposed modification shall be filed in writing on or before 7 days prior to the date of the hearing on the disclosure statement. The Troubled Company Reporter previously reported that each holder of an allowed unsecured claim, not otherwise treated in another class, will be paid in full on or before six months from the Effective Date. About Oyster Company of Virginia A Chapter 7 involuntary petition was filed against Oyster Company of Virginia, LLC (Bankr. E. D. Va. Case No. 16-34750) on Sept. 27, 2016. The petition was filed by Jeffrey and Eleanor Orndorff, Chandler Wiegand, and Half Shell Partners, LLC. On Nov. 4, 2016, the Chapter 7 case was converted to a Chapter 11 case. The case is assigned to Judge Keith L. Phillips. The U.S. trustee for Region 4 on Dec. 23, 2016, appointed seven creditors of Oyster Company of Virginia, LLC, to serve on the official committee of unsecured creditors. The Committee retained Christian & Barton, LLP, as counsel. P.D.L. INC: Wants Court Permission to Use Cash Collateral --------------------------------------------------------- P.D.L., Inc., seeks authorization from the U.S. Bankruptcy Court for the Southern District of Florida to use cash collateral for those purposes and in the amounts set forth in a budget. The Budget contains typical budget items, and encompasses and provides for the complete operation and management of the Debtor's business. It shows projected operating expenses in the aggregate sum of $189,153 for the months of August through October 2017. The Debtor's assets which include, inter alia, cash on hand and on deposit in bank accounts, $15,896 accounts receivables, furniture, equipment and supplies valued at approximately $15,000 subject to appraisal. The Debtor asserts that approval of the use of cash collateral will enable the Debtor to continue its operations and allow for an orderly reorganization. In contrast, absent the ability to use cash collateral, the Debtor's operations will come to a halt, thereby dramatically declining the value of the Debtor's assets, which will severely prejudice creditors and parties in interest. The secured creditors are: Wells Fargo Equipment Finance, Inc.; BMO Harris Bank, N.A.; Volvo Group; Hitachi; Commercial Credit Group Corporation, ENGS; Signature; DaimlerChrysler. A priority claim is owed to the Internal Revenue Service. Accordingly, the Debtor proposes to provide adequate protection payments to secured creditors as follows: (a) Wells Fargo Equipment Finance will be paid $8,000 per month; (b) BMO Harris Bank will be paid $5,000 per month; (c) Volvo Group will be paid $6,000 per month; (d) Hitachi will be paid $2,000 per month; (e) Commercial Credit Group will be paid $3,000 per month; (f) ENGS will be paid $1,000 per month; (g) Signature will be paid $1,000 per month; (h) DaimlerChrysler will be paid $500 per month; (i) The IRS will be paid $200 per month, which will be applied first to principal owed, and then fine and penalties. A full-text copy of the Debtor's Motion, dated Aug. 20, 2017, is available at https://is.gd/DGJuDr About P.D.L., Inc. P.D.L., Inc. is a Florida Profit Corporation formed on Oct. 31, 2003, operating as a trucking distributor. It is insured and provides employment for 7 full-time employees and over 30 independent contractors. P.D.L. filed a Chapter 11 petition (Bankr. S.D. Fla. Case No. 17-20457) on Aug. 17, 2017. The Debtor is represented by: Ariel Sagre, Esq. Sagre Law Firm, P.A. 5201 Blue Lagoon Drive, Suite 892 Miami, Florida 33126 Tel: (305) 266-5999 Fax: (305) 265-6223 PACHECO BROTHERS: Hires Low Accountancy as Accountant ----------------------------------------------------- Pacheco Brothers Gardening, Inc., seeks authority from the U.S. Bankruptcy Court for the Northern District of California to employ Low Accountancy, as accountant to the Debtor. Pacheco Brothers requires Low Accountancy to prepare the Corporation Tax Returns (Forms 1120 and 100) for the Debtor for the year ending December 31, 2016. Low Accountancy will be paid at the hourly rate $150. The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. Ronald Low, founder and managing partner of Low Accountancy, 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. Low Accountancy can be reached at: Ronald Low Low Accountancy 3478 Buskirk Ave, Suite 1004 Pleasant Hill, CA 94523 Tel: (925) 283-0281 Fax: (925) 746-7130 About Pacheco Brothers Gardening, Inc. Pacheco Brothers Gardening Inc. provides commercial landscape maintenance, landscape installation, turf renovation and irrigation projects. It has been in business for more than 35 years. The majority of the Company's business involves a wide variety of services ranging from mowing and trimming to irrigation repairs and troubleshooting. It has a number of East Bay municipal and public agency accounts as well as a mix of homeowner association, commercial accounts and school district accounts. Pacheco Brothers Gardening filed for Chapter 11 bankruptcy protection (Bankr. N.D. Cal. Case No. 17-40403) due to financial pressure brought on by several factors, including litigation cost relating to Tom Del Conte and TDDC Ventures LLC v. Pacheco Brothers Gardening, Inc., et al., Case No. HG15797608, currently pending in Alameda County Superior Court, unpaid vendors and operational difficulty due to its debt structure. At the time of the petition filing, the Debtor disclosed $1.36 million in assets and $2.78 million in liabilities. The petition was signed by Lynn Pacheco, secretary. The case is assigned to Judge William J. Lafferty. PANDA TAXI: Seeks Permission to Use ConnectOne Cash Collateral -------------------------------------------------------------- Panda Taxi, LLC and its affiliates seek authorization from the U.S. Bankruptcy Court for the District of New Jersey for the use of cash collateral to preserve their assets so as to maintain and maximize their value for the benefit of all parties-in-interest. The Debtors are in the business of leasing taxicab medallions. Each of the Debtors' primary assets is the two medallions issued by the New York City Taxi and Limousine Commission. Each medallion is valued at approximately $200,000. These Medallions permit the Debtors, and/or its lessees and sub-lessees, to perform taxi services in New York City and the surrounding areas, including New Jersey. The Debtors also have possession of and access to certain vehicles that are operated with the permission granted through the Medallions. Certain of these vehicles are owned directly by the Debtors while other vehicles are owned by non-debtor companies. Each of the Debtors entered into a promissory note with ConnectOne Bank. The original principal amount of each Debtor's loan with ConnectOne Bank is as follows: Badger Taxi, LLC $1,750,000 Cannes Taxi Inc. $1,800,000 Caramel Taxi LLC $1,800,000 Donkey Taxi, LLC $1,750,000 Dov Jam Cab Corp. $1,800,000 Dylan Taxi Inc. $1,800,000 Hot Fudge Taxi LLC $1,800,000 JDS Trans Inc. $1,200,000 Koala Taxi, LLC $1,750,000 Macar Service Corp. $1,200,000 Marshmallow Taxi LLC $1,200,000 Panda Taxi, LLC $1,750,000 Tori & Sarah Hacking Corp. $1,200,000 Twinkie Taxi LLC $1,200,000 The Debtors' indebtedness under each of the Notes was secured by a Security Agreement, pursuant to which, ConnectOne Bank holds the following collateral for each of the respective Notes entered into with the Debtors: Badger Taxi LLC IR44/IR45 Cannes Taxi Inc. 1L53/1L54 Caramel Taxi LLC 6V29/6V30 Donkey Taxi LLC IR42/IR43 Dov Jam Cab Corp. 5N80/5N81 Dylan Taxi Inc. 5L57/5L58 Hot Fudge Taxi LLC 6V63/6V64 JDS Trans Inc. 3G69/3G70; 2010 Nissan (VIN IN4CL2AP0AC141684) 2009 Ford (VIN 1FMCU49369KN02606) Koala Taxi LLC IR38/IR39 Macar Service Corp. 4M40/4M41; 2012 Ford (VIN 1FMCU4K35CKA37517) 2011 Ford (VIN 1FMCU4K36BKA16464) Marshmallow Taxi LLC 6V71/6V72; 2012 Toyota (VIN 5TDZK3DC5CS202695) 2012 Toyota (VIN 5TDZK3DC7CS205145) Panda Taxi LLC IR40/IR41 Tori & Sarah Hacking Corp. 6L94/7H64 Twinkie Taxi LLC 6V57/6V58; 2008 Toyota (VIN 5TDZK23C8S213611) 2008 Toyota (VIN 5TDZK23C98S161541) In addition to the collateral, ConnectOne Bank has a blanket lien on each of the Debtor's assets, including all proceeds of its collateral. ConnectOne Bank and the Debtors have entered into a consensual agreement with respect to the Debtors' use of ConnectOne Bank's cash collateral. The pertinent terms of the proposed interim order are as follows: (a) The Debtors are authorized to use the Collateral of ConnectOne Bank, including the Medallions and Taxicabs. (b) As adequate protection, ConnectOne Bank will be entitled to: (1) a perfected replacement lien and security interest, with the same priority in the postpetition collateral and proceeds thereof of the Debtors that ConnectOne Bank held in the prepetition Collateral; (2) the Debtors will maintain all necessary insurance as required by the Loan Documents or pursuant to any such rule and regulation of the New York City Taxi & Limousine Commission; and (3) to the extent that the adequate protection provided through the Order is insufficient to protect ConnectOne Bank's interest in the cash collateral, ConnectOne Bank will have a super priority administrative expense claim, senior to any and all claims against the Debtors. (c) On or before the 10th day of each calendar month (commencing in September 2017), the Debtors will remit to ConnectOne Bank the sum of $2,000 per Medallion, which Loan Reduction Payments will total in the aggregate, with respect to all of the Debtors, $56,000 per month. Due to the way the Debtors' operations are structured, the Debtors have minimal expenses for which cash collateral would need to be utilized. The Debtors represent that majority of the expenses of their businesses are covered by the management companies which the Debtors use to run the day-to-day operations of their business. Accordingly, the Debtors aver that cash collateral will be used to cover debt service obligation to ConnectOne Bank and U.S. Trustee fees. Thus, in order to successfully reorganize, the Debtors require the use of cash collateral and propose to pay only amounts that are absolutely necessary to maintain the Debtors' business and operations. A full-text copy of the Debtor's Motion, dated Aug. 17, 2017, is available at https://is.gd/jjTn1x About Panda Taxi Panda Taxi LLC; and its affiliates Badger Taxi LLC; Cannes Taxi Inc.; Caramel Taxi LLC; Donkey Taxi LLC; Dov Jam Cab Corp.; Dylan Taxi Inc.; Hot Fudge Taxi LLC; JDS Trans. Inc.; Koala Taxi LLC; Macar Service Corp.; Marshmallow Taxi LLC; Tori & Sarah Hacking Corp.; and Twinkie Taxi LLC filed separate Chapter 11 petitions (Bankr. D.N.J. Case Nos. 17-26678, 17-26680, 17-26682, 17-26684, 17-26685, 17-26686, 17-26687, 17-26689, 17-26692, 17-26693, 17-26694, 17-26695, 17-26696, and 17-26702, respectively) on Aug. 17, 2017. The petitions were signed by Evgeny A. Freidman, managing member. The Hon. Vincent F. Papalia presides over these cases. The Debtors' bankruptcy attorneys are Joseph J. DiPasquale, Esq. and Thomas Michael Walsh, Esq. at Trenk, DiPasquale, Della Fera & Sodono, P.C. The Debtors tapped Cole Schotz, P.C., and Fox Rothschild LLP as special litigation counsel. At the time of filing, the Panda Taxi estimated $100,000 to $500,000 in assets and $1 million to $10 million in liabilities. PDC ENERGY: S&P Hikes ICR to 'BB-', Outlook Stable -------------------------------------------------- S&P Global Ratings raised its issuer credit rating on Denver-based exploration and production (E&P) company PDC Energy Inc. to 'BB-' from 'B+'. The outlook is stable. S&P said, "At the same time, we raised the issue-level rating on the company's senior unsecured debt to 'BB-' with a recovery rating of '3', indicating our expectation of meaningful (50%-70%; rounded estimate: 65%) recovery to creditors in the event of a payment default. "The upgrade reflects our expectation that PDC will maintain a conservative financial policy while continuing to meaningfully increase production and reserves. We believe it is unlikely that PDC will deviate from funding acquisitions and capital spending through internally generated cash flow, proceeds from equity issuances, and modest increases in debt levels. That is a key factor in maintaining sound financial measures during a period of modest crude oil and natural gas prices. The upgrade also reflects our revised growth rate assumptions for PDC's oil production and reserves for the next few years, bringing production and reserve levels in line with 'BB' rated peers. We expect the company to continue to post solid drilling success in both the DJ and Delaware basins and to increase daily production to around 95,000 barrels of oil equivalent (boe) by the end of 2017. We also expect the company to increase its proportion of proved developed reserves, which is a drag on ratings. We view proved developed reserves more favorably given their lower risk and costs relative to undeveloped reserves. In addition, we project PDC's core credit metrics to remain strong over the next few years, with FFO to debt well above 20% and debt to EBITDA around 2x. "The stable outlook on PDC Energy Inc. reflects our view that the company will achieve annual production growth of at least 30% in 2017 while increasing its proved developed reserves. We expect the company to maintain credit measures appropriate for the rating, including FFO to debt greater than 20% and debt to EBITDA below 4x. "We could lower the rating if credit measures weakened such that FFO to debt approached 20% without a clear path to improvement. We believe this could occur if the company assumed a substantially more aggressive capital spending program than we forecast, if its production were weaker than our current projections for several quarters, or if crude oil prices weakened meaningfully and the company did not reduce capital spending. "We could raise the rating if we expected production and proved developed reserves to reach levels more in line with higher-rated peers, while maintaining FFO to debt above 20% and at least adequate liquidity." PEN INC: Incurs $321K Net Loss in Second Quarter ------------------------------------------------ PEN Inc. filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $321,190 on $2 million of total revenues for the three months ended June 30, 2017, compared to a net loss of $125,691 on $2.21 million of total revenues for the three months ended June 30, 2016. For the six months ended June 30, 2017, the Company reported a net loss of $226,778 on $4.21 million of total revenues compared to a net loss of $245,626 on $4.18 million of total revenues for the same period during the prior year. As of June 30, 2017, PEN Inc. had $3.16 million in total assets, $3.84 million in total liabilities and a total stockholders' deficit of $683,254. The Company had working capital deficit of $1,188,809 and $176,212 of cash as of June 30, 2017, and working capital deficit of $1,072,691 and $189,128 of cash as of Dec. 31, 2016. Net cash provided by operating activities was $180,244 for the six months ended June 30, 2017, as compared to $60,164 for the six months ended June 30, 2016, an improvement of $120,080 or 199.6%. Net cash provided by operating activities for the six months ended June 30, 2017 primarily reflected a net loss of ($226,778) adjusted for add-backs of $213,481 and changes in operating assets of $193,541. The Company expects its cash used in operating activities to increase slightly due to the following: * additional working capital to support increased sales; and * an increase in advertising, commissions and sales promotions for existing and new brands as the Company expands within existing markets or enter new markets. Net cash flow provided by investing activities was $0 for the six months ended June 30, 2017, as compared to $17,866 for the six months ended June 30, 2016. The 2016 period included proceeds from the sale of property and equipment of $21,866, partially offset by the purchase of property and equipment of $4,000. Net cash used in financing activities of $193,160 was related to the pay down in obligations on a net basis for the six months ended June 30, 2017, as compared to $49,337 in the same period in 2016. During the six months ended June 30, 2017, the Company paid off a bank note by $37,190, received $3,556,000 proceeds from a bank line of credit offset by the $3,707,030 repayment of the same bank line of credit and paid down $4,940 on a third-party note. "Our principal future uses of cash are for working capital requirements, including sales and marketing expenses and reduction of accrued liabilities. Application of funds among these uses will depend on numerous factors including our sales and other revenues and our ability to control costs," the Company said. A full-text copy of the Form 10-Q is available for free at: https://is.gd/PQsbf0 About PEN Inc. Headquartered in Miami, Florida, PEN develops, commercializes and markets consumer and industrial products enabled by nanotechnology that solve everyday problems for customers in the optical, transportation, military, sports and safety industries. The Company's primary business is the formulation, marketing and sale of products enabled by nanotechnology including the ULTRA CLARITY brand eyeglass cleaner, CLARITY DEFOGIT brand defogging products and CLARITY ULTRASEAL nanocoating products for glass and ceramics. The Company also sells an environmentally friendly surface protector, fortifier, and cleaner. The Company's design center conducts product development services for government and private customers and develops and sells printable inks and pastes, thermal management materials, and graphene foils and windows. PEN was formed in 2014, and is the successor to Applied Nanotech Holdings Inc. that had been formed in 1989. In the combination that created PEN, Nanofilm, Ltd. acquired Applied Nanotech Holdings, Inc. The Company's principal operating segments coincide with its different business activities and types of products sold. This is consistent with the Company's internal reporting structure. PEN Inc. reported a net loss of $556,001 on $8.11 million of total revenues for the year ended Dec. 31, 2016, compared to a net loss of $1.86 million on $9.68 million of total revenues for the year ended Dec. 31, 2015. Salberg & Company, P.A., in Boca Raton, Florida, issued a "going concern" qualification on the financial statements for the year ended Dec. 31, 2016, citing that the Company has a net loss in 2016 of $556,001, and has an accumulated deficit, stockholders' deficit and working capital deficit of $5,900,167, $578,096 and $1,072,691, respectively, at Dec. 31, 2016. These matters raise substantial doubt about the Company's ability to continue as a going concern. PETROLIA ENERGY: Incurs $1.26 Million Net Loss in Second Quarter ---------------------------------------------------------------- Petrolia Energy Corporation filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $1.26 million on $41,831 of total revenue for the three months ended June 30, 2017, compared to a net loss of $402,859 on $52,294 of total revenue for the three months ended June 30, 2016. The Company's increased revenue for the six months ended June, 30, 2017, as compared to the prior year's period is due to increased production at the Noack field and the acquisition of working interests in the Slick Unit Dutcher Sands ("SUDS") and Twin Lakes San Andres Unit ("TLSAU") fields during the end of 2016 and 2017. Its equipment sales for the six months ended June 30, 2017, were $0, a decrease of $198,000 from the prior six month's revenue of $198,000. This was because 2016 was the first year for the Company to have equipment sales and it has not had any additional equipment sales in 2017. For the six months ended June 30, 2017, the Company reported a net loss of $1.72 million on $75,391 of total revenue compared to a net loss of $704,801 on $255,293 of total revenue for the same period during the prior year. As of June 30, 2017, Petrolia had $13.49 million in total assets, $4.18 million in total liabilities and $9.31 million in total stockholders' equity. Operating expenses increased to $1,028,326 for the quarter ended June 30, 2017, from $384,504 for the quarter ended June 30, 2016. The Company's major expenses for the quarter ended June 30, 2017, were professional services of $55,891 and stock based compensation (directors) of $604,670, all included in general and administrative expenses. Additionally, lease operating expenses increased $60,217 to $123,119 for the quarter ended June 30, 2017, compared to $62,902 for the quarter ended June 30, 2016, due to numerous workovers at SUDS and TLSAU and additional labor hired and contracted to maintain the TLSAU and SUDS fields. Net cash used by operating activities was $529,466 for the six months ended June 30, 2017, and net cash used in operating activities was $81,971 for the six months ended June 30, 2016. The increase was due primarily to the increase in net loss, an increase in working capital requirements and newly acquired fields with higher cumulative lease operating expenses. This was partially offset by a delay in the accounts payable cycle (increased days outstanding) and deferred interest on short term debt. Net cash used by investing activities for the six months ended June 30, 2017, was $9,256 compared to net cash provided by investing activities of $16,998 for the six months ended June 30, 2016. The decrease was primarily due to proceeds received from the sale of equipment in the previous period. Net cash provided by financing activities was $475,786 and $83,390 for the six months ended June 30, 2017, and 2016, respectively. The increase from 2016 to 2017 was due to a year-over-year increase in advances from affiliates and proceeds from the sale of Preferred Stock. As of June 30, 2017, the Company had total current assets of $26,249 and total assets in the amount of $13,498,274. Its total current liabilities as of June 30, 2017, were $1,802,192. The Company had negative working capital of $1,775,943 as of June 30, 2017. The Company's material asset balances are made up of oil & gas properties and related equipment. Its most significant liabilities include related party notes, ARO and accruals for professional services. One note totaling $2,000,000 which was outstanding with Jovian was converted into Preferred Stock. Unregistered Sales of Equity Securities and Use of Proceeds and another related party note in the amount of $550,000 was outstanding with Rick Wilber, however, on July 6, 2017, Mr. Rick Wilber agreed to convert his cumulative outstanding debt of $550,000 into 55,000 shares of Preferred Stock. Additionally, there is $117,000 of shareholder advances outstanding and other short term debts that are temporarily funding working capital shortfalls. The Company said it continues to operate at a negative cash flow of approximately $50,000 per month and its auditors have raised a going concern issue in their latest audit report. "Management is pursuing several initiatives to secure funding to increase production at both the SUDS and Twin Lakes fields which together with anticipated increases in the price of crude oil may reduce Company's monthly cash shortfall. The total amount required by the Company to accomplish this objective is approximately $250,000, which funding may not be available on favorable terms, if at all. "We plan to increase revenues by drilling productive oil or gas wells. However, we will need to raise additional funds to drill new wells through the sale of our securities, through loans from third parties or from third parties willing to pay our share of drilling and completing the wells. We do not have any commitments or arrangements from any person to provide us with any additional capital. If additional financing is not available when needed, we may need to cease operations. There can be no assurance that we will be successful in raising the capital needed to drill oil or gas wells nor that any such additional financing will be available to us on acceptable terms or at all. Any wells which we may drill may not be productive of oil or gas. Management believes that actions presently being taken to obtain additional funding provide the opportunity for the Company to continue as a going concern." A full-text copy of the Form 10-Q is available for free at: https://is.gd/TMEIpu About Petrolia Energy Petrolia Energy Corporation -- http://www.petroliaenergy.com/-- formerly known as Rockdale Resources Corporation, is an oil and gas exploration, development, and production company. With operations in Texas, Oklahoma and New Mexico, the Company focuses on redeveloping existing oil fields in well-established oil rich regions of the U.S., employing industry-leading technologies to create added value. Petrolia Energy reported a net loss of $1.87 million on $321,000 of total revenue for the year ended Dec. 31, 2016, compared with a net loss of $1.85 million on $188,000 of total revenue for the year ended Dec. 31, 2015. MaloneBailey, LLP, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2016, citing that Petrolia Energy has incurred losses from operation since inception and has a net working capital deficiency. These factors raise substantial doubt about the Company's ability to continue as a going concern. PHOENICIAN MEDICAL: Voluntary Chapter 11 Case Summary ----------------------------------------------------- Debtor: Phoenician Medical Center, Inc. 1343 North Alma School Road, #160 Chandler, AZ 85224 Type of Business: Phoenician Medical is a privately held company in Chandler, AZ. It owns East Valley Family Medical (EVFM) -- http://evfm.care-- a physician-based multi-specialty group specializing in internal medicine, family medicine, physical medicine & rehabilitation and general practice. It serves the Arizona East Valley communities of Mesa, Ahwatukee, Chandler, Tempe, Gilbert, and Apache Junction. EVFM has grown from one single provider in 1999 to over 30 providers with more than 140,000 active primary care patients today. Phoenician Medical previously sought bankruptcy protection (Bankr. D. Ariz. Case No. 12-08771) on April 12, 2012. Chapter 11 Petition Date: August 24, 2017 Case No.: 17-09946 Court: United States Bankruptcy Court District of Arizona (Phoenix) Judge: Hon. Madeleine C. Wanslee Debtor's Counsel: Donald W. Powell, Esq. CARMICHAEL & POWELL, P.C. 6225 North 24th Street. #125 Phoenix, AZ 85016 Tel: 602-861-0777 Fax: 602-870-0296 E-mail: d.powell@cplawfirm.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Paramvir S. Tuli, president. The Debtor did not file a list of its 20 largest unsecured creditors on the Petition Date. A full-text copy of the petition is available for free at: http://bankrupt.com/misc/azb17-09946.pdf PHOTOMEDEX INC: Posts $1.13 Million Net Income in Second Quarter ---------------------------------------------------------------- Photomedex Inc. filed with the Securities and Exchange Commission its quarterly report on Form 10-Q reporting net income of $1.13 million on $0 of revenues for the three months ended June 30, 2017, compared to a net loss of $2.36 million on $11.24 million of revenues for the three months ended June 30, 2016. For the six months ended June 30, 2017, Photomedex reported a net loss of $710,000 on $3.53 million of revenues compared to a net loss of $7.23 million on $22.47 million of revenues for the same period during the prior year. As of June 30, 2017, Photomedex had $17.61 million in total assets, $9.73 million in total liabilities and $7.87 million in total stockholders' equity. As of June 30, 2017, the Company had an accumulated deficit of $116,345,000. To date, and subsequent to the recent sale of the Company's last significant business unit, the Company has dedicated most of its financial resources to general and administrative expenses. At present, the Company is not generating any revenues from operating activities. Cash and cash equivalents as of June 30, 2017, were $2,329,000 including restricted cash of $250,000. The Company has historically financed its activities with cash from operations, the private placement of equity and debt securities, borrowings under lines of credit and, in the most recent periods with sales of certain assets and business units. The Company will be required to obtain additional liquidity resources in order to support its operations. On Jan. 23, 2017, the Company sold its consumer products division to ICTV Brands, Inc., for a total selling price of $9.5 million. The Company has collected $5 million of that purchase price; the remaining amount of up to $4.5 million was payable through a contingent royalty on the sale of consumer products by ICTV Brands. A full-text copy of the Form 10-Q is available for free at: https://is.gd/7hC7wv About PhotoMedex PhotoMedex, Inc., is a global health products and services company providing integrated disease management and aesthetic solutions to dermatologists, professional aestheticians, ophthalmologists, optometrists, consumers and patients. The Company provides proprietary products and services that address skin conditions including psoriasis, vitiligo, acne, actinic keratosis, photo damage and unwanted hair, as well as fixed-site laser vision correction services at its LasikPlus(R) vision centers. Photomedex reported a loss of $13.26 million for the year ended Dec. 31, 2016, compared to a loss of $34.55 million for the year ended Dec. 31, 2015. Fahn Kanne & Co. Grant Thornton Israel, in Tel-Aviv, Israel, issued a "going concern" opinion on the consolidated financial statements for the year ended Dec. 31, 2016, citing that as of Dec. 31, 2016, the Company had an accumulated deficit of $115.6 million and shareholders' deficit of $1.408 million. Also, during the most recent periods the Company has incurred losses and negative cash flows from continuing operations and was forced to sell certain assets and business units to obtain additional liquidity resources to support its operations. In addition, on Jan. 23, 2017, the Company completed the sale of its consumer products division which represented the sale of substantially all of the remaining operations and assets of the Company. These conditions, along with other matters, raise substantial doubt about the Company's ability to continue as a going concern. PIONEER HEALTH: Sale of Early Assets to Lifebrite for $1M Approved ------------------------------------------------------------------ Judge Neil P. Olack of the U.S. Bankruptcy Court for the Southern District of Mississippi authorized Pioneer Health Services, Inc., to sell substantially all assets owned by Pioneer Health Services of Early County, LLC, to Lifebrite Hospital Group of Early, LLC, for $900,000, plus a cash payment of $148,000 towards liability owed to Georgia Department of Community Health ("GDCH"). A hearing on the Motion was held on June 23, 2017 at 9:00 a.m. Greg Hagood, on behalf of the Debtor, conducted the auction of the sale of the Early assets and Monroe assets on June 22, 2017, at 1:30 p.m. When the auction was closed, the bid of Boa Vida Hospital of Aberdeen, MS, LLC, for the Monroe assets was the highest and best bid for the Monroe assets; and the Lifebrite of Early bid was the highest and best bid for the Early assets for $900,000, plus a cash payment of $148,000 towards liability owed to GDCH. The Early transaction and the approval of the sale of the Early assets to Lifebrite of Early is subject to a pending motion to compel settlement. The sale is free and clear of all liens, claims and interests. Any holder of a Lien also will be adequately protected by having its Lien, if any, attach to the proceeds received by Monroe for the sale of the assets to to Lifebrite of Early. The Debtor, through Scott Phillips, its Chief Restructuring Officer, is authorized to execute such deeds, bills of sale or related documents, which are reasonably necessary to consummate and close the sale of the Early assets that are being sold under the APA. At closing, Lifebrite of Early is directed to pay the Purchase Price and any other consideration then due under the APA to Early. In addition to any other consideration payable to Early under the APA, at Closing, Lifebrite of Early will pay to Early the sum of $148,000, and Early will apply such funds towards the $250,000 owed by Early to GDCH at Closing. The Motion to Compel Settlement is withdrawn, as moot. The Closing Date of the sale transaction contemplated by the Order is extended through and including Sept. 30, 2017. The Order is a final judgment as contemplated by the applicable Bankruptcy Rules. About Pioneer Health Services Pioneer Health Services, Inc., et al., provide healthcare services to rural communities, and own and manage rural critical access hospitals. Pioneer Health Services, Inc., and its debtor-affiliates, including Medicomp Inc., filed Chapter 11 bankruptcy petitions (Bankr. S.D. Miss. Lead Case No. 16-01119) on March 30, 2016. Pioneer Health Services of Early County, LLC, commenced a Chapter 11 case on April 8, 2016. The cases are administratively consolidated. Joseph S. McNulty III, president, signed the petitions. Judge Hon. Neil P. Olack presides over the Debtors' cases. The Law Offices of Craig M. Geno PLLC serves as the Debtors' counsel. Mintz Levin Cohn Ferris Glovsky and Popeo, P.C., is acting as special counsel to the Debtor. Pioneer Health Services estimated $10 million to $50 million in assets and liabilities. Henry Hobbs, Jr., acting U.S. trustee for Region 5, on April 19, 2017, appointed three creditors of Pioneer Health Services to serve on the official committee of unsecured creditors. The Committee retained Arnall Golden Gregory LLP as counsel, and GlassRatner Advisory & Capital Group LLC as financial advisor. PITTSFIELD DEVELOPMENT: Hires Thompson as Special Counsel --------------------------------------------------------- Pittsfield Development LLC, et al., seek authority from the U.S. Bankruptcy Court for the Northern District of Illinois to employ Thompson Coburn LLP, as special real estate tax appeal counsel to the Debtor. The Bankruptcy Court previously approved the Debtor's employment of Kenneth Pilota to represent the Debtor in a dispute over a real estate tax sale by the Cook County Treasurer to Nebraska Alliance Realty Co. under Certificate of Purchase no. 13-0014339 for the tax year 2013 issued with respect to the portions of the Pittsfield Building owned by the Debtors. Pittsfield Residential II LLC, Pittsfield Hotel Holdings LLC, and 55 East Washington LLC, seek a reduction in the assessed value of their real estate for tax year 2017 and to seek certificates of error for tax years 2014 to 2016. The Debtors requires Thompson to perform the Tax Reduction Work. Thompson will be paid as follows: -- if the assessed value of the property is reduced by the Assessor, the Bankruptcy Court, or the Board of Review, the Firm will receive 15% of the tax year 2017 tax savings. -- if a reduction in the assessed value is obtained as a result of an appeal to the Illinois Property Tax Appeal Board, the Firm will receive 25% of the total refund or tax savings, if the taxes have not yet been paid, for each year in the triennial that the reduction is maintained either by decision of the Appeal Board or by a reduction by the Assessor or Board of Review as a result of the Appeal Board appeal. -- if a reduction in the assessed value is obtained as a result of an appeal to the Cook County Circuit Court or through a certificate or error, the Firm will receive 25% of the total amount refunded or of the tax savings, if the taxes have not yet been paid. Thomas Boyle, a member of Thompson Coburn LLP, assured the Court the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtors and their estates. Thompson can be reached at: Thomas Boyle, Esq. THOMPSON COBURN LLP 55 E. Monroe St., 37th Floor Chicago, IL 60603 Tel: (312) 346-7500 Fax: (312) 580-2201 About Pittsfield Development LLC Pittsfield Development LLC, owner of approximately one-third of the Pittsfield Building at 55 East Washington, Chicago, filed a Chapter 11 bankruptcy petition (Bankr. N.D. Ill. Case No. 17-09513) on March 26, 2017. Robert Danial, its manager, signed the petition. The Debtor disclosed total assets of $2.34 million and total liabilities of $8.76 million. The Hon. Jacqueline P. Cox presides over the case. Factor Law serves as counsel to the Debtor. The Debtor tapped Kenneth W. Pilota P.C. as special real estate tax counsel; Thompson Coburn LLP, as special real estate tax appeal counsel; and Imperial Realty Company, as real estate broker. PNEUMA INTERNATIONAL: Case Summary & 16 Unsecured Creditors ----------------------------------------------------------- Debtor: Pneuma International, Inc. dba EGPAK 23663 Foley St. Hayward, CA 94545 Type of Business: EGPAK is coated and laminated packaging paper manufacturer in Hayward, California. Chapter 11 Petition Date: August 25, 2017 Case No.: 17-42149 Court: United States Bankruptcy Court Northern District of California (Oakland) Judge: Hon. Roger L. Efremsky Debtor's Counsel: Nancy Weng, Esq. TSAO-WU & YEE, LLP 99 N 1st St. #200 San Jose, CA 95113 Tel: (408) 635-2334 Fax: (415) 777-2298 E-mail: nweng@tsaoyee.com Estimated Assets: $100,000 to $500,000 Estimated Liabilities: $1 million to $10 million The petition was signed by Mikahel Chang, principal. The Debtor's list of 16 unsecured creditors is available for free at http://bankrupt.com/misc/canb17-42149.pdf PRIMA PASTA: Plan Exclusivity Deadline Extended Through August 30 ----------------------------------------------------------------- Judge Elizabeth S. Stong of the U.S. Bankruptcy Court for the Eastern District of New York extended the exclusive period within which only Prima Pasta & Cafe, Inc. may file and solicit acceptances to a plan of reorganization from August 21 to August 30, 2017. As reported by the Troubled Company Reporter on August 14, the Debtor asked the Court for an exclusivity extension as that period was slated to expire August 21. About Prima Pasta & Cafe Prima Pasta & Cafe, Inc., filed for Chapter 11 bankruptcy protection (Bankr. E.D.N.Y. Case No. 17-40760) on Feb. 21, 2017, estimating its assets at up to $50,000. The Petition was signed by Antoinette Modica, president. Ortiz & Ortiz, L.L.P, serves as the Debtor's bankruptcy counsel. No unsecured creditors' committee has been appointed in this case. PRIME METALS: Resco Products Leaves Creditors' Committee -------------------------------------------------------- Resco Products, Inc., has left the official committee of unsecured creditors in the Chapter 11 case of Prime Metals & Alloys, Inc. As reported by the Troubled Company Reporter on March 27, 2017, Andrew Vara, acting U.S. trustee for Region 3, on March 22 appointed five creditors to serve on the Committee. The committee members now include: (1) Anderson Electric Attn: Scott D. Anderson 1138 Gompers Avenue Indiana PA 15701 Tel: (724) 388-3374 Fax: (724) 463-7220 E-mail: andelect@hotmail.com (2) Exelos Computer Services Attn: Edgar T. Hammer, III 139 S. Pennsylvania Avenue Greensburg, PA 15601 Tel: (724) 244-5834 Fax: (724) 832-8485 (3) Wack Manufacturing Attn: Dean Wack 510 Perry Highway Harmony, PA 16037 Tel: (724) 452-6066 Fax: (724) 452-8001 (4) Custom Alloy Corporation Attn: Peter Ganatra 3 Washington Avenue High Bridge, NJ 08829 Tel: (908) 638-6200 Fax: (908) 638-8032 E-mail: pganatra@customalloy.us Official creditors' committees have the right to employ legal and accounting professionals and financial advisors, at a debtor's expense. They may investigate the debtor's business and financial affairs. Importantly, official committees serve as fiduciaries to the general population of creditors they represent. About Prime Metals & Alloys Prime Metals & Alloys, Inc., began as a scrap-trading company and has grown to manufacturing and providing alloys, ingots, specialty scrap materials and customized scrap blends. Prime Metals & Alloys sought Chapter 11 protection (Bankr. W.D. Pa. Case No. 17-70164) on March 2, 2017, estimating assets of $1 million to $10 million and $10 million to $50 million in debt. The petition was signed by Richard Knupp, president. Judge Jeffery A. Deller is assigned to the case. The Debtor tapped Kirk B. Burkley, Esq., Allison L. Carr, Esq., and Daniel R. Schimizzi, Esq., at Bernstein-Burkley, P.C., as counsel. H2R CPA LLC serves as the Debtor's accountant. The Debtor employed Strategic Advisors, Inc., to market its assets. The official committee of unsecured creditors retained Fox Rothschild LLP as legal counsel. PROTEOSTASIS: Accumulated Losses Raise Going Concern Doubt ---------------------------------------------------------- Proteostasis Therapeutics, Inc., filed its quarterly report on Form 10-Q, disclosing a net loss of $16.96 million on $1.15 million of revenue for the three months ended June 30, 2017, compared with a net loss of $9.05 million on $1.45 million of revenue for the same period in 2016. For the six months ended June 30, 2017, the Company listed a net loss of $32.05 million on $2.17 million of revenue, compared to a net loss of $17.04 million on $2.61 million of revenue for the same period in the prior year. The Company's balance sheet at June 30, 2017, reflected $62.06 million in total assets, $10.90 million in total liabilities, and a stockholders' equity of $51.16 million. The Company has incurred losses from operations since its inception. As of June 30, 2017, the Company had an accumulated deficit of $189.5 million. During the three and six months ended June 30, 2017, the Company incurred losses of $17.0 million and $32.1 million and during the six months ended June 30, 2017 the Company used $27.7 million of cash in operations. The Company expects to continue to generate operating losses in the foreseeable future. The Company currently expects that its cash, cash equivalents and short-term investments of $57.7 million will be sufficient to fund its operating expenses and capital requirements, based upon its current operating plan, through the second quarter of 2018. As of June 30, 2017, management has further assessed this risk and, in accordance with the requirements of ASC 205-40, determined that there are initial conditions indicating that there is substantial doubt about the Company's ability to continue as a going concern within twelve months of the issuance date of these condensed financial statements. These indicators are the Company's accumulated deficit and the forecasted cash expenditures. A copy of the Form 10-Q is available at: https://is.gd/YRNlts Headquartered in Cambridge, Mass., Proteostasis Therapeutics, Inc., is an innovative biopharmaceutical company committed to the discovery and development of novel therapeutics that treat diseases caused by an imbalance in the proteostasis network, a set of pathways that control protein biosynthesis, folding, trafficking and clearance. It has developed the Disease Relevant Translation (DRT) technology platform, a drug screening approach for identifying highly translatable therapeutics based on predictive and functionally pertinent phenotypic assays and disease relevant models. Using this platform, it has identified a new class of small molecules, amplifiers that modulate proteins in the proteostasis network. PUERTO RICO: Ferrovial Agroman, Vitrol Appointed to Committee ------------------------------------------------------------- Guy Gebhardt, acting U.S. trustee for Region 21, on August 25 appointed Ferrovial Agroman and Vitrol, Inc., as new members of the official committee of unsecured creditors in the Chapter 9 cases of the Commonwealth of Puerto Rico and three other debtors. The other debtors are the Employees Retirement System of the Government of the Commonwealth of Puerto Rico, Puerto Rico Highways and Transportation Authority and Puerto Rico Electric Power Authority. The committee is now composed of: (1) The American Federation of Teachers (AFT) Attn: Mark Richard Counsel to the President of the AFT 555 New Jersey Ave., N.W., 11th floor Washington, DC 20001 (2) Doral Financial Corporation c/o Drivetrain LLC 630 Third Avenue, 21st Floor New York, NY 10017 (3) Genesis Security 5900 Ave. Isla Verde L-2 PMB 438 Carolina, PR 00979 (4) Puerto Rico Hospital Supply Call Box 158 Carolina, PR 00986-0158 (5) Service Employees International Union (SEIU) 1800 Massachusetts Avenue N.W. Washington, D.C. 20036 (6) Total Petroleum Puerto Rico Corp. Citi View Plaza Tower I 48 Road 165 Oficina 803 Guaynabo, PR 00968-8046 (7) Unitech Engineering c/o Ramón Ortiz Carro Urb Sabanera 40 Camino de la Cascada Cidra, PR 00739 (8) Ferrovial Agroman c/o Manuel Sanchez Pereira 1250 Ponce de Leon Edificio San Jose Suite 901 San Juan, PR 00907 (9) Vitol, Inc. 2925 Richmond Ave. Houston, TX 77098 The bankruptcy watchdog also announced in a court filing that from and after August 25, the panel will no longer serve as the official committee in the bankruptcy case of Puerto Rico Sales Tax Financing Corp. About Puerto Rico Puerto Rico is a self-governing commonwealth in association with the United States that's facing a massive bond debt of $70 billion, a 68% debt-to-GDP ratio and negative economic growth in nine of the last 10 years. The Commonwealth of Puerto Rico has sought bankruptcy protection, aiming to restructure its massive $74 billion debt-load and $49 billion in pension obligations. The debt restructuring petition was filed by Puerto Rico's financial oversight board in U.S. District Court in Puerto Rico (Case No. 17-01578) on May 3, 2017, and was made under Title III of 2016's U.S. Congressional rescue law known as the Puerto Rico Oversight, Management, and Economic Stability Act ("PROMESA"). The Financial Oversight and Management Board later commenced Title III cases for the Puerto Rico Sales Tax Financing Corporation (COFINA) on May 5, 2017, and the Employees Retirement System (ERS) and the Puerto Rico Highways and Transportation Authority (HTA) on May 21. On July 2, 2017, a Title III case was commenced for the Puerto Rico Electric Power Authority ("PREPA"). U.S. Chief Justice John Roberts has appointed U.S. District Judge Laura Taylor Swain to oversee the Title III cases. The Honorable Judith Dein, a United States Magistrate Judge for the District of Massachusetts, has been designated to preside over matters that may be referred to her by Judge Swain, including discovery disputes, and management of other pretrial proceedings. Joint administration of the Title III cases, under Lead Case No. 17-3283, was granted on June 29, 2017. The Oversight Board has hired as advisors, Proskauer Rose LLP and O'Neill & Borges LLC as legal counsel, McKinsey & Co. as strategic consultant, Citigroup Global Markets as municipal investment banker, and Ernst & Young, as financial advisor. Martin J. Bienenstock, Esq., Scott K. Rutsky, Esq., and Philip M. Abelson, Esq., of Proskauer Rose; and Hermann D. Bauer, Esq., at O'Neill & Borges are on-board as attorneys. McKinsey & Co. is the Board's strategic consultant, Ernst & Young is the Board's financial advisor, and Citigroup Global Markets Inc. is the Board's municipal investment banker. Prime Clerk LLC is the claims and noticing agent. Prime Clerk maintains a case web site at: https://cases.primeclerk.com/puertorico Epiq Bankruptcy Solutions LLC is the service agent for ERS, HTA, and PREPA. O'Melveny & Myers LLP is counsel to the Commonwealth's Puerto Rico Fiscal Agency and Financial Advisory Authority (AAFAF), the agency responsible for negotiations with bondholders. The Oversight Board named Professor Nancy B. Rapoport as fee examiner and to chair a committee to review professionals' fees. Bondholders' Attorneys Toro, Colon, Mullet, Rivera & Sifre, P.S.C. and Kramer Levin Naftalis & Frankel LLP serve as counsel to the Mutual Fund Group, comprised of mutual funds managed by Oppenheimer Funds, Inc., Franklin Advisers, Inc., and the First Puerto Rico Family of Funds, which collectively hold over $3.5 billion in COFINA Bonds and over $2.9 billion in other bonds issued by Puerto Rico and other instrumentalities, including over $1.8 billion of Puerto Rico general obligation bonds ("GO Bonds"). White & Case LLP and Lopez Sanchez & Pirillo LLC represent the UBS Family of Funds and the Puerto Rico Family of Funds, which hold $613.3 million in COFINA bonds. Paul, Weiss, Rifkind, Wharton & Garrison LLP, Robbins, Russell, Englert, Orseck, Untereiner & Sauber LLP, and Jimenez, Graffam & Lausell are co-counsel to the ad hoc group of General Obligation Bondholders, comprised of Aurelius Capital Management, LP, Autonomy Capital (Jersey) LP, FCO Advisors LP, Franklin Mutual Advisers LLC, Monarch Alternative Capital LP, Senator Investment Group LP, and Stone Lion Capital Partners L.P. Quinn Emanuel Urquhart & Sullivan, LLP and Reichard & Escalera are co-counsel to the ad hoc coalition of holders of senior bonds issued by COFINA, comprised of at least 30 institutional holders, including Canyon Capital Advisors LLC and Varde Investment Partners, L.P. Correa Acevedo & Abesada Law Offices, P.S.C., is counsel to Canyon Capital Advisors, LLC, River Canyon Fund Management, LLC, Davidson Kempner Capital Management LP, OZ Management, LP, and OZ Management II LP (the QTCB Noteholder Group). Committees The U.S. Trustee formed an official committee of retirees and an official committee of unsecured creditors of the Commonwealth. The retiree committee tapped Jenner & Block LLP and Bennazar, Garcia & Milian, C.S.P., as its attorneys. The creditors' committee tapped Paul Hastings LLP and O'Neill & Gilmore LLC as counsel. PUERTO RICO: Phoenix Hired as Financial Advisor for Mediation Team ------------------------------------------------------------------ The Financial Oversight and Management Board for Puerto Rico -- as the representative of the Commonwealth of Puerto Rico, the Puerto Rico Sales Tax Financing Corporation, the Puerto Rico Highways and Transportation Authority, the Employees Retirement System of the Government of the Commonwealth of Puerto Rico, and the Puerto Rico Electric Power Authority -- seeks authorization from the U.S. District Court for the District of Puerto Rico to employ Phoenix Management Services, LLC as financial advisor for the mediation team appointed in the Title III cases and related proceedings, effective August 4, 2017. On June 23, 2017, the Court entered an order appointing the Mediation Team to facilitate confidential settlement negotiations of any and all issues and proceedings arising in the Title III Cases. The members of the Mediation Team are the Honorable Barbara Houser, the Honorable Thomas Ambro, the Honorable Nancy Atlas, the Honorable Victor Marrero, and the Honorable Christopher Klein. The Oversight Board requires Phoenix Management to: (a) assist the Mediation Team with: -- understanding the fiscal plans based on all data made available; -- understanding the types of consideration that may be offered under plans of adjustment; and -- identifying capital structures and debt restructuring techniques that may be useful in mediating plans of adjustment; (b) provide other services to the Mediation Team that may be requested to support facilitative and directive mediation sessions, including, but not limited to: -- identifying financial and information-related observations made by the parties to identify common ground on assumptions and methodologies, factual consistencies and inconsistencies, disjointed perceptions and incomplete information; -- sharing insights with the Mediators and participants, as appropriate, including reflecting and reframing parties' comments; -- helping the Mediators work through overlapping financial issues and impacts across the different mediations; and -- helping the Mediators identify underlying priorities and options for negotiated resolutions related to ongoing financial issues on-island; and (c) provide other services as requested by the Mediation Team. Phoenix Management will be paid at these hourly rates: Senior Managing Directors $495-$695 Senior Advisors $400-$650 Managing Directors $395-$525 Directors & Senior Directors $320-$450 Vice Presidents, Associates & Analysts $150-$350 Support Staff $75-$150 Phoenix Management will also be reimbursed for reasonable out-of-pocket expenses incurred. Martha E. M. Kopacz, a senior managing director of Phoenix Management, assured the Court that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtors and their estates. Phoenix Management can be reached at: Martha E. M. Kopacz Phoenix Management Services, LLC Ten Post Office Square, Ste. 605N Boston, MA 02109 Tel: (617) 600-3600 E-mail: mkopacz@phoenixmanagement.com About Puerto Rico Puerto Rico is a self-governing commonwealth in association with the United States that's facing a massive bond debt of $70 billion, a 68% debt-to-GDP ratio and negative economic growth in nine of the last 10 years. The Commonwealth of Puerto Rico has sought bankruptcy protection, aiming to restructure its massive $74 billion debt-load and $49 billion in pension obligations. The debt restructuring petition was filed by Puerto Rico's financial oversight board in U.S. District Court in Puerto Rico (Case No. 17-01578) on May 3, 2017, and was made under Title III of 2016's U.S. Congressional rescue law known as the Puerto Rico Oversight, Management, and Economic Stability Act ("PROMESA"). The Financial Oversight and Management Board later commenced Title III cases for the Puerto Rico Sales Tax Financing Corporation (COFINA) on May 5, 2017, and the Employees Retirement System (ERS) and the Puerto Rico Highways and Transportation Authority (HTA) on May 21. On July 2, 2017, a Title III case was commenced for the Puerto Rico Electric Power Authority ("PREPA"). U.S. Chief Justice John Roberts has appointed U.S. District Judge Laura Taylor Swain to oversee the Title III cases. The Honorable Judith Dein, a United States Magistrate Judge for the District of Massachusetts, has been designated to preside over matters that may be referred to her by Judge Swain, including discovery disputes, and management of other pretrial proceedings. Joint administration of the Title III cases, under Lead Case No. 17-3283, was granted on June 29, 2017. The Oversight Board has hired as advisors, Proskauer Rose LLP and O'Neill & Borges LLC as legal counsel, McKinsey & Co. as strategic consultant, Citigroup Global Markets as municipal investment banker, and Ernst & Young, as financial advisor. Martin J. Bienenstock, Esq., Scott K. Rutsky, Esq., and Philip M. Abelson, Esq., of Proskauer Rose; and Hermann D. Bauer, Esq., at O'Neill & Borges are onboard as attorneys. McKinsey & Co. is the Board's strategic consultant, Ernst & Young is the Board's financial advisor, and Citigroup Global Markets Inc. is the Board's municipal investment banker. Prime Clerk LLC is the claims and noticing agent. Prime Clerk maintains a case web site at: https://cases.primeclerk.com/puertorico Epiq Bankruptcy Solutions LLC is the service agent for ERS, HTA, and PREPA. O'Melveny & Myers LLP is counsel to the Commonwealth's Puerto Rico Fiscal Agency and Financial Advisory Authority (AAFAF), the agency responsible for negotiations with bondholders. The Oversight Board named Professor Nancy B. Rapoport as fee examiner and to chair a committee to review professionals' fees. Bondholders' Attorneys Toro, Colon, Mullet, Rivera & Sifre, P.S.C. and Kramer Levin Naftalis & Frankel LLP serve as counsel to the Mutual Fund Group, comprised of mutual funds managed by Oppenheimer Funds, Inc., Franklin Advisers, Inc., and the First Puerto Rico Family of Funds, which collectively hold over $3.5 billion in COFINA Bonds and over $2.9 billion in other bonds issued by Puerto Rico and other instrumentalities, including over $1.8 billion of Puerto Rico general obligation bonds ("GO Bonds"). White & Case LLP and Lopez Sanchez & Pirillo LLC represent the UBS Family of Funds and the Puerto Rico Family of Funds, which hold $613.3 million in COFINA bonds. Paul, Weiss, Rifkind, Wharton & Garrison LLP, Robbins, Russell, Englert, Orseck, Untereiner & Sauber LLP, and Jimenez, Graffam & Lausell are co-counsel to the ad hoc group of General Obligation Bondholders, comprised of Aurelius Capital Management, LP, Autonomy Capital (Jersey) LP, FCO Advisors LP, Franklin Mutual Advisers LLC, Monarch Alternative Capital LP, Senator Investment Group LP, and Stone Lion Capital Partners L.P. Quinn Emanuel Urquhart & Sullivan, LLP and Reichard & Escalera are co-counsel to the ad hoc coalition of holders of senior bonds issued by COFINA, comprised of at least 30 institutional holders, including Canyon Capital Advisors LLC and Varde Investment Partners, L.P. Correa Acevedo & Abesada Law Offices, P.S.C., is counsel to Canyon Capital Advisors, LLC, River Canyon Fund Management, LLC, Davidson Kempner Capital Management LP, OZ Management, LP, and OZ Management II LP (the QTCB Noteholder Group). Committees The U.S. Trustee formed a nine-member Official Committee of Retirees and a seven-member Official Committee of Unsecured Creditors of the Commonwealth. The Retiree Committee tapped Jenner & Block LLP and Bennazar, Garcia & Milian, C.S.P., as its attorneys. The Creditors Committee tapped Paul Hastings LLP and O'Neill & Gilmore LLC as counsel. QUADRANGLE PROPERTIES: Seeks 90-Day Exclusivity Period Extension ---------------------------------------------------------------- Quadrangle Properties, Inc. requests the U.S. Bankruptcy Court for the Southern District of Mississippi to extend by an additional 90 days the exclusive period within which to file a Plan of Reorganization and Disclosure Statement, and a similar extension to obtain Plan confirmation. The Debtor tells the Court that it has been in negotiations with various creditors and has been making determinations to allow them to finalize many matters with regard to a Disclosure Statement and proposed Plan to be filed. Quadrangle Properties asserts that no decision has been made by both the Debtor and its counsel as to whether a sale of assets or pursuit of a plan of reorganization is the best option for the Debtor. The Debtor believes it will have a better idea as to its ability to pursue a meaningful plan of reorganization after the current summer season has passed. In addition, the Debtor and Zions First National Bank, its major secured creditor, are engaged in meaningful settlement negotiations with respect to the use of insurance proceeds that are being held in escrow for the repair and rehabilitation of those portions of the Debtor's assets that were damaged by fire prior to the bankruptcy filing. The Debtor believes that those negotiations are, and will be, fruitful and will hopefully lead to either a consensual dismissal of the case or a consensual plan of reorganization. However, the Debtor anticipates that the negotiations will involve a rather extensive amount of detail with respect to the repair costs. The Debtor tells the Court that it is presently fine-tuning the initial estimates it obtained for both the full repair of the damages and the costs for demolition of the damaged portions of its properties. About Quadrangle Properties Quadrangle Properties, Inc., headquartered in Jackson, Mississippi, sought protection under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Miss. Case No. 17-01469) on April 18, 2017. The petition was signed by R. Don Williams, president. The Debtor estimated assets of $1 million to $10 million and liabilities of $500,000 to $1 million. The Hon. Edward Ellington presides over the case. Craig M. Geno, Esq., at the Law Offices of Craig M. Geno, PLLC, serves as the Debtor's legal counsel. QUINCY MEDIA: S&P Alters Outlook to Pos. on Improved Debt Leverage ------------------------------------------------------------------ S&P Global Ratings revised its rating outlook on Quincy, Illinois-based TV broadcaster Quincy Media Inc. to positive from stable and affirmed its 'B+' corporate credit rating on the company. S&P said, "At the same time, we affirmed our 'BB+' issue-level rating on the company's priority revolving credit facility. The '1+' recovery rating is unchanged, indicating our expectation for full recovery (100%) of principal in the event of a payment default. "We also affirmed our 'B+' issue-level rating on the company's senior secured term loan. The '3' recovery rating is unchanged, indicating our expectation for meaningful recovery (50%-70%; rounded estimate: 60%) of principal in the event of a payment default." The outlook revision reflects Quincy's steady operating performance, improving leverage towards the mid-3x area, and growing track record of voluntary debt repayment. S&P said, "It also reflects our view that the company's leverage could continue to decline in 2018, based on our expectation for healthy advertising revenue from competitive political races in its markets coupled with good retransmission revenue growth. Quincy's debt to average trailing eight quarter EBITDA (pro forma for its acquisition of Granite Broadcasting Corp. in 2015) was about 3.5x as of June 30, 2017. We could raise the corporate credit rating if we expect Quincy to reduce and maintain leverage below 3.5x on a sustained basis. "The positive outlook reflects our view that we could raise our corporate credit rating on Quincy by the end of 2018 if the company commits to a financial policy that results in debt to average trailing-eight-quarter EBITDA declining and remaining below 3.5x on a sustained basis. This could result from better-than-expected EBITDA growth coupled with debt repayment. "We could raise the rating if we expect Quincy's leverage, based on average trailing-eight-quarter EBITDA, to improve below 3.5x on a sustained basis. This could likely occur due to competitive 2018 political races in Quincy's markets with significant advertising spending, double-digit percentage retransmission revenue growth from renegotiated contracts, and continued debt repayment. "We could revise the outlook to stable if we expect leverage will remain in the mid- to high-3x range. This could occur if 2018 political advertising spending is lower than expected; if Quincy's core local and national advertising declines, which would likely limit the company's voluntary debt repayment; or if the company pursues an expensive debt-financed acquisition that increases leverage." RANCHO ARROYO: 1240 Palmetto Buying Santa Barbara Property for $7M ------------------------------------------------------------------ Ranch Arroyo Grande, LLC, asks the U.S. Bankruptcy Court for the Central District of California to authorize the sale of real property located at 1530 Roble Drive, Santa Barbara, California, to 1240 Palmetto, LLC, and/or its assignee, for $6,975,000. The Roble Property consists of an 11,293 sq. ft. main house with nine bedrooms and 6.5 baths, a two-bedroom guest house, pool, tennis court and other improvements, including approximately seven acres of landscaped gardens. The Debtor's principals, Christopher and Ann Conway previously resided at the Roble Property, however, vacated it in June 2017 and it remains vacant. Since the inception of the case, the Roble Property has been listed for sale and is currently the sole remaining asset of the estate remaining to be sold. The Roble Property is subject to these liens and encumbrances: a. Real property taxes assessed against the Ranch Property by the County of Santa Barbara for 2015-2016 totaling $98,440 as of Aug. 31, 2017; b. A first deed of trust recorded July 28, 2003, as Instrument No. 2003-0100359 in favor of Wells Fargo Home Mortgage securing a Note in the original amount of $3,000,000. On Feb. 29, 2016, Wells Fargo filed a proof of claim on its secured claim in the amount of $2,363,669. The Debtor estimates that Wells Fargo is currently owed approximately $2,500,000 on the WF Note. c. A second deed of trust recorded Dec. 5, 2014, as Instrument No. 2014-0055724 in favor of USI Servicing, Inc. ("USI"), securing a Note in the original amount of $2,000,000 pursuant to a proof of claim filed March 29, 2016. The Debtor estimates that USI is currently owed approximately $3,000,000 under the USI Note. Pursuant to the terms of a Stipulation between the Debtor, USI and Well Fargo, approved by the Court on Dec. 13, 2016, USI was entitled to record a Notice of Default on the Roble Property after May 31, 2017 and foreclose after July 31, 2017. On June 2, 2017, USI recorded a Notice of Default against the Roble Property. It is anticipated that USI will be able to set a sale in early October of 2017. In addition, pursuant to the terms of the Stipulation, Wells Fargo now holds an unsecured deficiency claim in this case in the amount of $2,123,297. The balance of the unsecured claims total approximately $12,000. The Debtor previously accepted an all cash offer in the amount of $8.9 million from the Buyer's principal Steve Zimmerman on March 15, 2017. On March 17, 2017, the Debtor filed a motion to approve the sale, together with an ex parte application for order shortening the time to present the motion. On March 20, 2017 the Court granted the Ex Parte Application and set the hearing on the sale motion on April 5, 2017 at 10:00 a.m. On April 5, 2017, the Court entered an order approving the sale. The order provided for the full payment of the secured and unsecured claims in the case. Escrow was scheduled to close on May 22, 2017. During the due diligence period various issues arose that ultimately led the buyer to elect to cancel the escrow on May 9, 2017. On June 22, 2017 the Debtor reduced the listing price from $8.9 million to $8.65 million and has subsequently reduced it to $7.9 million. The Debtor has now received and accepted, subject to approval of the Court, an offer to purchase the Roble Property from the Buyer for $6,975,000, consisting of a $200,000 non-refundable deposit, with the balance payable in cash at close of escrow. The terms of the proposed sale are set forth in the Residential Purchase Agreement and Joint Escrow Instructions. Escrow will close no later than 10 days from date of entry of the order approving the sale. There are no contingencies to the sale other than (i) confirmation that title is in the same condition as set forth in the preliminary title report dated March 9, 2017 previously provided to the principal of the Buyer (except for payment of secured liens at closing) and (ii) approval of the sale by the Court. A copy of the Purchase Agreement attached to the Motion is available for free at: http://bankrupt.com/misc/Rancho_Arroyo_254_Sales.pdf On July 18, 2016, the Court entered an order authorizing the Debtor to employ Linda Lorenzen and Coldwell Banker to list the Roble Property for sale. Pursuant to the Listing Agreement, Lorenzen is entitled to a 5% commission from the sale of the Roble Property, which will be split with the Buyer's real estate agent. The proposed sale in the case is sufficient to pay all secured claims in full and will result in net proceeds of approximately $1 million available to make a pro rata distribution to the unsecured creditors in the estate. The Debtor proposes to pay directly from escrow (i) all commissions and closing costs; (ii) real property taxes assessed against the Roble Property by the County of Santa Barbara; (iii) the secured claim of Wells Fargo Home Mortgage secured by a first deed of trust; and (iv) the secured claim of USI secured by a second deed of trust. The Debtor further asks the Court to waive the 10-day period provided for in Federal Rule of Bankruptcy Procedure 6004(g). About Rancho Arroyo Grande Rancho Arroyo Grande, LLC, sought protection under Chapter 11 of the Bankruptcy Code (Bankr. C.D. Cal. Case No. 15-12171) on Oct. 30, 2015. The petition was signed by Christopher J. Conway, managing member. The case is assigned to Judge Peter Carroll. At the time of the filing, the Debtor disclosed $18.3 million in assets and $14.6 million in liabilities. The Debtor is represented by Karen L. Grant, Esq., at The Law Offices of Karen L. Grant. RENNOVA HEALTH: Grants 2.7M Common Shares to Employees & Directors ------------------------------------------------------------------ The Board of Directors of Rennova Health, Inc., based on the recommendation of the Compensation Committee of the Board and in accordance with the provisions of the 2007 Incentive Award Plan, approved grants to employees and directors of an aggregate of 2,729,000 shares of restricted common stock of the Company, including the following to the directors of the Company: Seamus Lagan 200,000 shares Dr. Kamran Ajami 100,000 shares Christopher Diamantis 100,000 shares Trevor Langley 100,000 shares The grants fully vest on the first anniversary of the date of grant, subject to the grantee's continued status as an employee or director, as the case may be, on the vesting date. The restricted shares of common stock are deemed to be issued and outstanding and the grantee may exercise full rights with respect to such shares; provided, that, prior to the vesting date, the shares cannot be sold, transferred, pledged, hypothecated, assigned or otherwise disposed of. Upon the grantee's termination of employment or service as a director, as the case may be, prior to the vesting date for any reason the unvested shares will be forfeited. The shares granted to the directors were granted under the Plan pursuant to a grant agreement. About Rennova Health Based in West Palm Beach, Florida, Rennova Health, Inc. (NASDAQ:RNVA) -- http://www.rennovahealth.com/-- provides diagnostics and supportive software solutions to healthcare providers, delivering an efficient, effective patient experience and superior clinical outcomes. Rennova Health reported a net loss attributable to common stockholders of $32.61 million on $5.24 million of net revenues for the year ended Dec. 31, 2016, compared with a net loss attributable to common stockholders of $37.58 million on $18.39 million of net revenues for the year ended Dec. 31, 2015. As of June 30, 2017, Rennova Health had $5.68 million in total assets, $23.20 million in total liabilities, and a total stockholders' deficit of $17.51 million. Green & Company, CPAs, in Temple Terrace, Florida, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2016, citing that the Company has significant net losses and cash flow deficiencies. Those conditions raise substantial doubt about the Company's ability to continue as a going concern. RENT-A-WRECK: Hires Quarles & Brady as Bankruptcy Counsel --------------------------------------------------------- Rent-A-Wreck of America, Inc., et al., seek authority from the U.S. Bankruptcy Court for the District of Delaware to employ Quarles & Brady LLP, as counsel to the Debtors. Rent-A-Wreck requires Quarles & Brady to: (a) advise the Debtors of their rights, powers and duties as debtors in possession; (b) advise the Debtors regarding matters of bankruptcy law; (c) represent the Debtors in proceedings and hearings in the U.S. Bankruptcy Court for the District of Delaware; (d) represent the Debtors in any matter involving contests with secured or unsecured creditors, including the claims reconciliation process; (e) prepare on behalf of the Debtors any necessary motions, applications, orders, responses, and other legal papers; (f) provide assistance, advice, and representation concerning the confirmation of any proposed plans and solicitation of any acceptances or responding to objections to those plans; (g) advise the Debtors concerning, and assist in the negotiation and documentation of, financing agreements, debt restructurings, cash collateral arrangements, and related transactions; (h) provide assistance, advice, and representation concerning any possible sale of the Debtors' assets; (i) review the nature and validity of liens asserted against the property of the Debtors and advising the Debtors concerning the enforceability of such liens; (j) provide assistance, advice and representation concerning any further investigation of the assets, liabilities, and financial condition of the Debtors that may be required under local, state, or federal law; (k) prosecute and defend litigation matters and such other matters that might arise during these Chapter 11 Cases; (l) provide counseling and representation with respect to assumption or rejection of executory contracts and leases, sales of assets, and other bankruptcy-related matters arising from the bankruptcy cases; (m) render advice with respect to general corporate and litigation issues relating to these cases, including, but not limited to, securities, corporate finance, tax, and commercial matters; and (n) perform such other legal services as may be necessary and appropriate for the efficient and economical administration of the Chapter 11 Cases. Quarles & Brady will be paid at these hourly rates: Partners $325-$920 Of Counsel/Senior Counsel $315-$640 Associates $245-$490 Paraprofessionals $105-$400 In the one-year period prior to the Petition Date, Quarles & Brady received payment from the Debtors in the amount of $294,828.50 in fees and $6,172.62 in expenses for a total of $301,001.12 for services rendered in connection with the planning of the Debtors' bankruptcy cases and on other unrelated matters. Additionally, on July 24, 2017, Quarles & Brady received a retainer in the amount of $50,000 in connection with the planning and preparation of initial documents. Quarles & Brady will also be reimbursed for reasonable out-of-pocket expenses incurred. Christopher Combest, a partner of Quarles & Brady LLP, assured the Court that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtors and their estates. Quarles & Brady can be reached at: Christopher Combest, Esq. QUARLES & BRADY LLP 300 N. LaSalle Street, Suite 4000 Chicago, IL 60654 Tel: (312) 715-5000 Fax: (312) 715-5155 E-mail: christopher.combest@quarles.com About Rent-A-Wreck of America, Inc. Rent-A-Wreck -- http://www.rentawreck.com/-- is a car rental company headquartered in Laurel, Maryland. Founded in 1968 and franchising since 1973, the Company offers for rent economy cars, full size luxury sedans, pickup trucks, box trucks, mini-vans, cargo vans, 15-passenger vans, SUVs, and station wagons. It has locations across the United States and internationally in Norway, Sweden and Denmark. Rent-A-Wreck of America, Inc. (Bankr. D. Del. Case No. 17-11592) and affiliate Bundy American, LLC (Bankr. D. Del. Case No. 17-11593) filed for Chapter 11 bankruptcy protection on July 24, 2017, each estimating their assets and liabilities at between $1 million and $10 million. The petitions were signed by James William Cash, president. Quarles & Brady LLP is the Debtors' counsel. Aaron S. Applebaum, Esq., at Saul Ewing LLP, serves as the Debtors' co-counsel. The U.S. Trustee on August 9 disclosed in a court filing that no official committee of unsecured creditors has been appointed in the Chapter 11 case of Rent-A-Wreck of America, Inc. RENT-A-WRECK: Hires Saul Ewing as Bankruptcy Co-Counsel ------------------------------------------------------- Rent-A-Wreck of America, Inc., et al., seek authority from the U.S. Bankruptcy Court for the District of Delaware to employ Saul Ewing LLP, as co-counsel to the Debtors. Rent-A-Wreck requires Saul Ewing to: a. provide legal advice with respect to the Debtors' powers and duties as debtors in possession in the continued operation of their businesses, management of their properties, and the potential sale of their assets; b. prepare and pursue confirmation of a plan and approval of a disclosure statement; c. prepare, on behalf of the Debtors, necessary applications, motions, answers, orders, reports, and other legal papers; d. appear in Court and protect the interests of the Debtors before the Bankruptcy Court; and e. perform all other services assigned by the Debtors, in consultation with Quarles & Brady LLP, to Saul Ewing as co-counsel to the Debtors, and to the extent the Firm determines that such services fall outside of the scope of services historically or generally performed by Saul Ewing as co-counsel in a bankruptcy proceeding, Saul Ewing will file a supplemental declaration pursuant to Bankruptcy Rule 2014. Saul Ewing will be paid at these hourly rates: Partners $425-$950 Special Counsel $390-$815 Associates $250-$430 Paraprofessionals $215-$335 Saul Ewing received a retainer of $13,434 and $10,000, on July 13, 2017, and July 24, 2017, respectively. Saul Ewing will also be reimbursed for reasonable out-of-pocket expenses incurred. Mark Minuti, a partner of Saul Ewing LLP, assured the Court that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtors and their estates. Saul Ewing can be reached at: Mark Minuti, Esq. SAUL EWING LLP 1201 N. Market Street, Suite 2300 Wilmington, DE 19801 Tel: (302) 421-6840 Fax: (302) 421-5873 E-mail: mminuti@saul.com About Rent-A-Wreck of America, Inc. Rent-A-Wreck -- http://www.rentawreck.com/-- is a car rental company headquartered in Laurel, Maryland. Founded in 1968 and franchising since 1973, the Company offers for rent economy cars, full size luxury sedans, pickup trucks, box trucks, mini-vans, cargo vans, 15-passenger vans, SUVs, and station wagons. It has locations across the United States and internationally in Norway, Sweden and Denmark. Rent-A-Wreck of America, Inc. (Bankr. D. Del. Case No. 17-11592) and affiliate Bundy American, LLC (Bankr. D. Del. Case No. 17-11593) filed for Chapter 11 bankruptcy protection on July 24, 2017, each estimating their assets and liabilities at between $1 million and $10 million. The petitions were signed by James William Cash, president. Quarles & Brady LLP is the Debtors' counsel. Aaron S. Applebaum, Esq., at Saul Ewing LLP, serves as the Debtors' co-counsel. The U.S. Trustee on August 9 disclosed in a court filing that no official committee of unsecured creditors has been appointed in the Chapter 11 case of Rent-A-Wreck of America, Inc. RICK'S PATIO: Case Summary & 17 Unsecured Creditors --------------------------------------------------- Debtor: Rick's Patio, Inc. dba Spa Max dba Rick's Patio Pool & Spa 1531 Pomona Road Corona, Ca 92880 Type of Business: Rick's Patio, Inc. -- https://spamax.com/ -- is a dealer of hot tubs and new and refurbished spas in Corona, California. The Company is a small business debtor as defined in 11 U.S.C. Section 101(51D). Chapter 11 Petition Date: August 25, 2017 Case No.: 17-17137 Court: United States Bankruptcy Court Central District of California (Riverside) Judge: Hon. Mark D. Houle Debtor's Counsel: Robert B Rosenstein, Esq. ROSENSTEIN & ASSOCIATES 28600 Mercedes St Ste 100 Temecula, CA 92590 Tel: 951-296-3888 Fax: 951-296-3889 E-mail: robert@thetemeculalawfirm.com Estimated Assets: $0 to $50,000 Estimated Liabilities: $1 million to $10 million The petition was signed by Richard Joseph Colosimo, vice president. The Debtor's list of 17 largest unsecured creditors is available for free at http://bankrupt.com/misc/cacb17-17137.pdf ROCK ELITE: U.S. Trustee Unable to Appoint Committee ---------------------------------------------------- The Office of the U.S. Trustee on Aug. 24 disclosed in a court filing that no official committee of unsecured creditors has been appointed in the Chapter 11 case of Rock Elite Fitness, LLC. Headquartered in West Palm Beach, Florida, Rock Elite Fitness, LLC, filed for Chapter 11 bankruptcy protection (Bankr. S.D. Fla. Case No. 17-17314) on June 12, 2017, estimating its assets at up to $50,000 and its liabilities at between $100,001 and $500,000. Dana L. Kaplan, Esq., at Kelley & Fulton, PL, serves as the Debtor's bankruptcy counsel. SAEXPLORATION HOLDINGS: Reports $17.8 Million Net Loss for Q2 ------------------------------------------------------------- SAExploration Holdings, Inc., filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $17.84 million on $13.55 million of revenue from services for the three months ended June 30, 2017, compared to net income of $877,000 on $57.04 million of revenue from services for the same period a year ago. For the six months ended June 30, 2017, the Company reported a net loss of $9.01 million on $99.72 million of revenue from services compared to net income of $17.50 million on $147.20 million of revenue from services for the six months ended June 30, 2016. As of June 30, 2017, SAExploration had $172.87 million in total assets, $142.92 million in total liabilities and $29.95 million in total stockholders' equity. Working capital as of June 30, 2017, was $26,741,000 compared to $40,807,000 as of Dec. 31, 2016. The decrease in working capital for the first six months of 2017 was principally due to the reclassification of the Senior Loan Facility from long term to short term partially offset by the related reclassification of associated deferred loan issuance costs. An additional $6.0 million of accounts receivable was reclassified from short term to long term also contributing to the decrease in working capital. Cash provided by operations for the six months ended June 30, 2017, was $17,124,000 compared to cash used by operations of $4,742,000 for the six months ended June 30, 2016, an increase in cash provided by operations of $21,866,000. Cash provided by net loss and net cash adjustments to net income decreased to $13,696,000 for the six months ended June 30, 2017, compared to cash provided by net income and net cash adjustments to net income of $24,940,000 for the six months ended June 30, 2016, as a result of its net loss in 2017 partially offset by an increase in amortization of deferred financing costs related to its Senior Loan Facility, increase in payment in kind interest on its Second Lien Notes and decrease in foreign currency gains and depreciation and amortization. Net changes in operating assets and liabilities resulted in cash provided of $3,428,000 for the six months ended June 30, 2017, compared to cash used of $29,682,000 for the six months ended June 30, 2016. At June 30, 2017, the Company's largest account receivable from one customer was $78.1 million, representing 88% of total consolidated accounts receivable. A full-text copy of the Form 10-Q is available for free at: https://is.gd/O8J7Z5 About SAExploration Holdings Based in Houston, Texas, SAExploration Holdings, Inc. (NASDAQ:SAEX) is an internationally-focused oilfield services company offering a full range of vertically-integrated seismic data acquisition and logistical support services in Alaska, Canada, South America, and Southeast Asia to its customers in the oil and natural gas industry. In addition to the acquisition of 2D, 3D, time-lapse 4D and multi-component seismic data on land, in transition zones between land and water, and offshore in depths reaching 3,000 meters, the Company offers a full-suite of logistical support and in-field data processing services. The Company operates crews around the world that are supported by over 29,500 owned land and marine channels of seismic data acquisition equipment and other leased equipment as needed to complete particular projects. SAExploration reported a net loss attributable to the Company of $25.03 million on $205.56 million of revenue from services for the year ended Dec. 31, 2016, compared to a net loss attributable to the Company of $9.87 million on $228.13 million of revenue from services for the year ended Dec. 31, 2015. * * * In June 2016, S&P Global Ratings lowered its corporate credit rating on SAExploration Holdings to 'CC' from 'CCC-'. At the same time, S&P lowered the issue-level rating on the company's senior secured notes to 'CC' from 'CCC-'. The outlook remains negative. The downgrade follows SAExploration's announcement that it plans to launch an exchange offer to existing holders of its 10% senior secured notes for shares of common equity and a new issue of second-lien notes. Following the rating action, S&P withdrew the corporate credit and issue-level ratings at the company's request. In September 2016, Moody's Investors Service withdrew SAExploration's 'Caa2' Corporate Family Rating and other ratings. SAFWAY GROUP: Moody's Withdraws B3 CFR on Debt Repayment -------------------------------------------------------- Moody's Investors Service withdrew all the ratings of Safway Group Holding LLC, including its B3 Corporate Family Rating, its B3-PD Probability of Default Rating, and its B3 first lien term loan rating. Moody's has withdrawn these ratings after Safway's debt has been fully repaid after Safway was acquired by Brand Industrial Service. The following is a summary of Moody's ratings actions taken for Safway: -- B3 Corporate Family Rating, withdrawn; -- B3-PD Probability of Default Rating, withdrawn; -- B3 (LGD3) $945 million senior secured first lien term loan due 2023, withdrawn; -- Stable outlook, withdrawn. RATINGS RATIONALE Moody's has withdrawn the ratings as all of Safway's debt has been fully repaid after Safway was acquired by Brand Industrial Service. Headquartered in Waukesha, Wisconsin, Safway Group Holding LLC is a provider of scaffolding, hoisting, insulation, coatings and other services supporting the refining, chemical, power industries and commercial construction in North America. SCI DIRECT: U.S. Trustee Forms Four-Member Committee ---------------------------------------------------- Daniel M. McDermott, U.S. Trustee Region 9, on Aug. 24 appointed four creditors to serve on the official committee of unsecured creditors in the Chapter 11 cases of SCI Direct, LLC, and its debtor affiliates. The committee members are: (1) NAMANCO PRODUCTIONS, INC. c/o James C. Walsh Temporary Chairperson 300 E. 51st Street, Suite 7D New York, NY 10022 Tel: (212) 688-6310 Fax: (212) 758-7875 (2) DESIGN MOLDED PLASTICS c/o Martin Puleo 8220 Bavaria Road Macedonia, OH 44056 Tel: (330) 963-4400 Ext. 125 Fax: (330) 963-4300 (3) BLUE TECHNOLOGIES, INC. c/o Clara Nader 5885 Grant Avenue Cleveland, OH 44105 Tel: (216) 271-4800 Fax: (216) 271-0127 (4) YODER GRAPHIC SYSTEMS, INC. c/o Marc Yoder 724 Seville Road Wadsworth, OH 44281 Tel: (330) 334-5060 Fax: (330) 328-1150 Official creditors' committees have the right to employ legal and accounting professionals and financial advisors, at a debtor's expense. They may investigate the debtor's business and financial affairs. Importantly, official committees serve as fiduciaries to the general population of creditors they represent. About Suarez Corporation Suarez Corporation Industries -- http://www.suarez.com/-- is a direct marketing company currently offering hundreds of diversified products around the world. From heaters, food services, jewelry, body and skin care, collectible coins, and health products, SCI continues to lead the way through product innovation and multi-channel marketing. The Company offers services through mail, phone and internet, television, newspaper, and magazines. The company started in business in 1968 when Benjamin Suarez started a small business from his home which eventually became Suarez Corporation Industries. Suarez Corporation Industries is an operating entity involved in direct marketing products to consumers, and Retail Partner Enterprises, LLC, markets the same products on a wholesale basis to retail stores. SCI Direct, LLC, holds certain patents, trademarks, and other intellectual property used by Suarez Corporation Industries, and Retail Partner Enterprises, LLC. The entities are owned by Suarez Enterprises Holding Company. Each of SCI Direct LLC, Suarez Corporation Industries, and two affiliates filed separate voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code (Bankr. N.D. Ohio Case Nos. 17-61735 to 17-61738) on Aug. 7, 2017. The cases are jointly administered before the Honorable Russ Kendig under SCI Direct's Case No. 17-61735. Anthony J. DeGirolamo serves as the Debtors' bankruptcy counsel. The Phillips Organization is the Debtors' accountant. Craig T. Conley, Esq., is special counsel. Kurtzman Carson Consultants LLC is the claims and noticing agent. SEARS HOLDINGS: Incurs $251 Million Net Loss in Second Quarter -------------------------------------------------------------- Sears Holdings Corporation filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss attributable to Holdings' shareholders of $251 million on $4.36 billion of total revenues for the 13 weeks ended July 29, 2017, compared to a net loss attributable to Holdings' shareholders of $395 million on $5.66 billion of total revenues for the 13 weeks ended July 30, 2016. For the 26 weeks ended July 29, 2017, Sears Holdings reported a net loss attributable to Holdings' shareholders of $7 million on $8.66 billion in total revenues compared to a net loss attributable to Holdings' shareholders of $866 million on $11.05 billion of total revenues for the 26 weeks ended July 30, 2016. As of July 29, 2017, Sears Holdings had $8.35 billion in total assets, $12 billion in total liabilities and a total deficit of $3.65 billion. "The retail environment remained challenging, with continued softness in store traffic and elevated price competition, however, we are encouraged that the month of July was the best month of the quarter in terms of comparable store sales performance," the Company stated in a press release. Comparable store sales declined 11.5% during the second quarter of 2017. Kmart comparable store sales decreased 9.4%, with a 6.8% decline excluding the impact of the consumer electronics and pharmacy categories, while Sears comparable store sales declined 13.2%, with a 12.1% decline excluding consumer electronics category. "We continued to focus on streamlining our operations, reducing inventory and operating expenses, and are taking incremental actions to further improve the Company's performance. The impact of the various actions we have taken resulted in improved Adjusted EBITDA in each consecutive month of the quarter, including positive Adjusted EBITDA in the month of July." As a result of the Seritage and JV transactions, Adjusted EBITDA for the second quarter of 2017 and 2016 included additional rent expense of approximately $44 million and $48 million, respectively. Due to the structure of the leases, the Company expects that its cash rent obligations to Seritage and the joint venture partners will decline, over time, as space in these stores is recaptured. From the inception of the Seritage transaction to date, the Company has received recapture notices on 36 properties and also exercised its right to terminate the lease on 56 properties, which is estimated to reduce its rent payments by approximately $52 million on an annual basis. Edward S. Lampert, chairman and chief executive officer of Sears Holdings, said, "We are making progress on the strategic priorities we outlined earlier this year and remain focused on returning our Company to profitability. The comprehensive restructuring of our operations is delivering cost efficiencies and helping drive improvements to our operating performance. While the third quarter has historically been our most difficult quarter over the past several years, we are working towards making meaningful improvement in our performance this year as a result of the restructuring actions we have put in place, and our continued focus on the expansion of our Shop Your Way ecosystem." Rob Riecker, Holdings' chief financial officer, said, "During the quarter, we continued to focus on actions to provide the Company with additional financial flexibility to generate liquidity and demonstrate our ability to manage our business while meeting all of our financial obligations." Financial Position and Liquidity Update At July 29, 2017, the Company had utilized approximately $605 million of its $1.5 billion revolving credit facility due in 2020 (consisting of $216 million of borrowings and $389 million of letters of credit outstanding). The amount available to borrow under the Company's credit facility was approximately $191 million, which reflects the effect of its springing fixed charge coverage ratio covenant and the borrowing base limitation in its revolving credit facility, which varies primarily based on its overall inventory and receivables balances. Availability under the Company's general debt basket was approximately $407 million at July 29, 2017, compared to $250 million at Jan. 28, 2017. The Company's total cash balances were $442 million at July 29, 2017, including restricted cash of $230 million, compared with $286 million at Jan. 28, 2017. Short-term borrowings totaled $546 million at the end of the second quarter of 2017, consisting of $216 million of revolver borrowings and $330 million of line of credit loans. Merchandise inventories were $3.4 billion at July 29, 2017, compared to $4.7 billion at July 30, 2016, while merchandise payables were $0.7 billion and $1.3 billion at July 29, 2017, and July 30, 2016, respectively. Total long-term debt (including current portion of long-term debt and capital lease obligations) was $3.5 billion and $4.2 billion at July 29, 2017, and Jan. 28, 2017, respectively. The Company continued to take actions during the second quarter of 2017 to improve liquidity. As previously announced, the Company amended its existing Second Lien Credit Agreement dated Sept. 1, 2016, in July to provide for the creation of a $500 million Line of Credit Loan Facility. At the end of the second quarter of 2017, $330 million was outstanding under the Line of Credit Facility. Seven investors have made loans to the Company under the Line of Credit Facility, including affiliates of ESL Investments, Inc., certain of the Company's directors and companies affiliated with them, and certain unaffiliated third party investors. Additionally, in August, the Company executed an amendment to its secured standby letter of credit facility. The amendment, among other things, extends the maturity of the $271 million LC Facility from its original maturity date of Dec. 28, 2017, through Dec. 28, 2018, and eliminates the unused portion of the facility. The LC Facility permits the lenders, JPP, LLC and JPP II, LLC, affiliates of ESL, to syndicate all or a portion of their commitments under the LC Facility. As of today, $140 million of the LC Facility has been syndicated to unaffiliated third party lenders. During the second quarter of 2017, the Company generated net cash proceeds of over $460 million from real estate transactions, a portion of which were used to reduce the amounts outstanding under the 2016 Real Estate Loan from $500 million to $263 million, which resulted in increased availability under the general debt basket of the Company's revolving credit facility, pursuant to which the Company can raise up to $1.0 billion in loans that can mature within the June 2020 maturity, and under the 2017 Real Estate Loan from $500 million to $461 million. Remaining net proceeds of over $180 million from the real estate transactions were used to reduce the outstanding balance on the Company's revolving credit facility. Subsequent to second quarter end, the Company executed additional asset sales which generated cash proceeds of nearly $160 million, with approximately $25 million utilized to pay down amounts outstanding under the 2017 Real Estate Loan and the remainder used to pay down revolver borrowings. The Company continues to work to manage our vendor relationships in a constructive manner. The Company has materially reduced its risk over the past several years, while meeting all of our obligations. Similarly, the Company will continue to ensure that its vendors deliver on their obligations to Sears Holdings. Strategic Actions In July, the Company announced its agreement with Amazon to launch Kenmore products on Amazon.com, which the Company expects will significantly expand the reach of the Kenmore brand. The Company expects this partnership to drive growth opportunities across three of its divisions - Kenmore, Sears Home Services and Innovel Solutions, Inc. Innovel and Sears Home Services will provide white-glove service for delivery, installation and extended product protection for the full range of home appliances from Kenmore sold on Amazon.com. The Amazon Kenmore Store will feature a full range of Kenmore products for purchase across the United States, with select home appliances already available in California. The Company continues to explore opportunities for its Kenmore and DieHard brands, as well as its Sears Home Services and Sears Auto Center businesses by evaluating potential partnerships or other transactions that could expand distribution of its brands and service offerings to realize significant growth. There can be no assurance that the Company will complete one or more transactions, and it also intends to take actions on its own that present the opportunity to improve the economics of these brands and business, including potential externalization through non-Sears Holdings channels. Sears Holdings has also continued to achieve significant progress in our restructuring program announced earlier this year, with over $1.0 billion in annualized cost savings actioned to date. Actions taken to date to realize $1.25 billion in annualized cost savings have included simplification of the organizational structure of Sears Holdings, streamlining of operations, reducing unprofitable categories and the closure of under-performing stores. In fiscal year 2017, the Company has closed approximately 180 stores previously announced for closure, and an additional 150 stores previously announced for closure are expected to be closed by the end of the third quarter of 2017. In addition, the Company will be notifying associates at 28 Kmart stores that it will be closing these stores later this year, as the Company continue to transform its business model so that its physical store footprint and its digital capabilities match the needs and preferences of our members; a list of these stores will be posted in the "News/Media" section of searsholdings.com (http://searsholdings.com/media/company-statements)by mid-day. As a result of these actions, the Company has begun to see improvement in the operations in the second quarter as noted above, particularly in the months of June and July as the restructuring program actions, including the closing of unprofitable stores, have begun to take effect. Finally, in August 2017, the Company reached an agreement with Metropolitan Life Insurance Company to annuitize an additional $512 million of its pension liability, under which MLIC will pay future pension benefit payments to approximately 20,000 retirees. This action is expected to have an immaterial impact on the funded status of our total pension obligations, but will serve to further reduce the size of the Company's combined pension plan, reduce future cost volatility, and reduce future plan administrative expenses. A full-text copy of the Form 10-Q is available for free at: https://is.gd/ZRYYjw About Sears Holdings Sears Holdings Corporation (NASDAQ: SHLD) -- http://www.searsholdings.com/-- is an integrated retailer focused on seamlessly connecting the digital and physical shopping experiences to serve members. Sears Holdings is home to Shop Your Waytm, a social shopping platform offering members rewards for shopping at Sears and Kmart as well as with other retail partners across categories important to them. The Company operates through its subsidiaries, including Sears, Roebuck and Co. and Kmart Corporation, with more than 2,000 full-line and specialty retail stores in the United States and Canada. Kmart Corporation and 37 of its U.S. subsidiaries filed voluntary Chapter 11 petitions (Bankr. N.D. Ill. Lead Case No. 02-02474) on Jan. 22, 2002. Kmart emerged from chapter 11 protection on May 6, 2003, pursuant to the terms of an Amended Joint Plan of Reorganization. Skadden, Arps, Slate, Meagher & Flom, LLP, represented Kmart in its restructuring efforts. Its balance sheet showed $16,287,000,000 in assets and $10,348,000,000 in debts when it sought chapter 11 protection. Kmart bought Sears, Roebuck & Co., for $11 billion to create the third-largest U.S. retailer, behind Wal-Mart and Target, and generate $55 billion in annual revenues. Kmart completed its merger with Sears on March 24, 2005. Sears Holdings reported a net loss of $2.22 billion on $22.13 billion of revenues for the fiscal year 2016, compared to a net loss of $1.12 billion on $25.14 billion of revenues for the fiscal year 2015. * * * In January 2017, Fitch Ratings has affirmed the Long-term Issuer Default Ratings (IDR) on Sears Holdings Corporation (Holdings) and its various subsidiary entities (collectively, Sears) at 'CC'. In December 2016, that S&P Global Ratings affirmed its ratings, including the 'CCC+' corporate credit rating, on Sears Holdings Corp. "We revised our assessment of Sears' liquidity to less than adequate from adequate based on the impact of continued and meaningful cash use and constraints on contractually committed liquidity from cash use and incremental secured funded borrowings," said credit analyst Robert Schulz. "We do not incorporate any significant prospective asset sales or execution of strategic alternatives for legacy hardline brands into our assessment of committed liquidity." In January 2017, Moody's Investors Service downgraded Sears Holdings' corporate family rating to 'Caa2' from 'Caa1'. Sears' 'Caa2' rating reflects the company's sizable operating losses - Domestic Adjusted EBITDA was a loss of $884 million in the latest 12 month period. SENIOR COMMUNITY: Case Summary & 12 Unsecured Creditors ------------------------------------------------------- Debtor: Senior Community Housing Long Beach, LLC 20521 Gault St. Winnetka, CA 91306 Type of Business: Senior Community Housing owns in fee simple interest a real property located at 3635 Elm Ave. Long Beach, CA 90807, 3635 Elm Ave. valued at $1.65 million. Chapter 11 Petition Date: August 24, 2017 Case No.: 17-12260 Court: United States Bankruptcy Court Central District of California (San Fernando Valley) Judge: Hon. Maureen Tighe Debtor's Counsel: Michael R Totaro, Esq. TOTARO & SHANAHAN POB 789 Pacific Palisades, CA 90272 Tel: 310-573-0276 Fax: 310-496-1260 E-mail: Ocbkatty@aol.com Total Assets: $1.65 million Total Liabilities: $6.66 million The petition was signed by Dean R. Isaacson, president of managing partner. The Debtor's list of 12 largest unsecured creditors is available for free at http://bankrupt.com/misc/cacb17-12260.pdf SHEPHERD UNIVERSITY: Taps Jaenam Coe as Legal Counsel ----------------------------------------------------- Shepherd University seeks approval from the U.S. Bankruptcy Court for the Central District of California to hire legal counsel in connection with its Chapter 11 case. The Debtor proposes to employ the Law Offices of Jaenam Coe PC to, among other things, give legal advice regarding its duties under the Bankruptcy Code; examine claims of creditors; and assist in the preparation of a plan of reorganization. Jaenam Coe will charge $500 per hour for the services of its attorneys and $200 per hour for paralegal services. The firm received from the Debtor a pre-bankruptcy retainer of $15,283, plus $1,717 for the filing fee. The firm does not hold or represent any interest adverse to the Debtor's estate and creditors, according to court filings. The firm can be reached through: Jaenam J. Coe, Esq. Law Offices of Jaenam Coe PC 3731 Wilshire Blvd., Suite 910 Los Angeles, CA 90010 Phone: 213-389-1400 Fax: 213-387-8778 About Shepherd University Shepherd University -- http://www.shepherduniversity.edu-- was established in Los Angeles in August 1999 by Dr. Richard Cornel Rhee to serve the community in Southern California. Dr. Rhee founded the school in collaboration with a faculty of scholars and professionals, envisioning the purpose of educating in nursing, music, information technology and theology at the current location. The Campus of Shepherd University consists of 83,600-square-foot building, 5.87-acre campus space and more than 325 parking spots located in the section of Los Angeles near downtown. The Debtor sought protection under Chapter 11 of the Bankruptcy Code (Bankr. C.D. Calif. Case No. 17-19964) on August 14, 2017. Shalom Kim, its president, signed the petition. At the time of the filing, the Debtor disclosed that it had estimated assets and liabilities of $1 million to $10 million. Judge Sheri Bluebond presides over the case. SHIRAZ HOLDINGS: U.S. Trustee Unable to Appoint Committee --------------------------------------------------------- The Office of the U.S. Trustee on Aug. 24 disclosed in a court filing that no official committee of unsecured creditors has been appointed in the Chapter 11 case of Shiraz Holdings LLC. About Shiraz Holdings, LLC Shiraz Holdings, LLC, based in Delray Beach, Fla., filed a Chapter 11 petition (Bankr. S.D. Fla. Case No. 17-17968) on June 26, 2017. The Hon. Paul G. Hyman, Jr. presides over the case. Thomas M. Messana, Esq., at Messana, P.A., serves as bankruptcy counsel. In its petition, the Debtor estimated $10 million to $50 million in both assets and liabilities. The petition was signed by Jordan A. Satary, managing member. SHORT BARK: Wants to Secure $17.7M DIP Financing From LSQ Funding ----------------------------------------------------------------- Short Bark Industries, Inc., et al., and the Official Committee of Unsecured Creditors ask the U.S. Bankruptcy Court for the District of Delaware to authorize the Debtors to obtain up to $17.7 million in postpetition factoring and other financial accommodations, and to use cash collateral. A hearing on the motion will be held on Sept. 11, 2017, at 11:00 a.m. (ET). Objections to the motion must be filed by Sept. 5, 2017, at 4:00 p.m. (ET). The Debtors need additional liquidity to fund their postpetition operations and their ongoing sale marketing efforts. In an effort to reach a consensual agreement regarding post-petition financing and the sale process and avoid further cost and expense that the Debtors and their estates cannot afford, the Debtors and the Committee have agreed to a form of a final DIP court order with LSQ Funding Group, L.C., that resolves the majority of the Committee's concerns, enables LSQ to continue funding the Debtors' business operations and these Chapter 11 cases, and optimizes the likelihood of a value maximizing sale process. The proposed Final DIP Order enables the Debtors to avoid an immediate shut-down and the resulting termination of over 500 of their employees. The proposed Final DIP Order resolves the Committee's (and other parties') material concerns over the financing terms and sale process. Under the proposed Final DIP Order, the Debtors' previously unencumbered assets, like Chapter 5 causes of action and proceeds, as well as D&O actions and proceeds, will not be subject to LSQ's liens, claims or other interests. These assets will remain in the Debtors' estates for the benefit of unsecured creditors. The Committee has raised various objections to the initial terms of the post-petition financing obtained by the Debtors from LSQ. The Committee raised its concerns with respect to, among other things: (i) the Roll-Up, (ii) the amount of LSQ's prepetition claim, (iii) the releases provided to LSQ and its affiliates, (iv) the likelihood that the estates are administratively insolvent, (v) the short length of time of the Challenge Period, (vi) the fact that the Committee was not granted standing to pursue a Challenge (if any), (vii) the granting of liens on and security interests in previously unencumbered assets such as avoidance actions and D&O claims and proceeds thereof, (viii) waivers of the estates' rights under Sections 552(b) and 506(c) of the U.S. Bankruptcy Code, (ix) LSQ's ability to credit bid the full amount of its alleged debt, (x) LSQ's charging of default interest on outstanding prepetition obligations, and (xi) LSQ's entitlement to the payment of fees and expenses in connection with its defense of any challenge proceeding. The proposed Final DIP Order represents the resolution reached by the Debtors, the Committee and LSQ with respect to the Committee's objections to the DIP Motion and the pending sale process of substantially all of the Debtors' assets. The salient relevant terms of the proposed Final DIP Order are: -- granting of DIP-financing, including a Roll-Up, not to exceed $17.7 million; -- extension of the Committee's challenge period to the earlier to occur the closing of an asset sale or Oct. 23, 2017, and the tolling of said challenge period upon the filing of a motion seeking standing; -- preservation of previously unencumbered assets, including Avoidance Actions and claims against certain Reserved Parties, for the benefit of the Debtors' estates and stakeholders. -- establishment of a mechanism determining the amount of LSQ's prepetition claim; -- modifications to the carve-out allocated to Committee professionals; -- reservation of the Committee's rights with respect to sale-related matters; and -- distribution of sale proceeds to LSQ on account if its senior secured claim and to general unsecured creditors, which unsecured creditor distributions being contingent upon the occurrence of a Section 363 sale and subject to increases based on competitive bidding at the auction. By LSQ's agreement to waive any unsecured deficiency claim and share a portion of any upside above any stalking horse bid, the proposed Final DIP Order ensures that unsecured creditors realize a distribution from any sale proceeds and that the distributions (if any) are made promptly following a closing of any sale. The agreements are not a result of the Debtors and the Committee's settlement of estate causes of action. They are a result of the Debtors and the Committee's desire to limit administrative cost that would continue to be incurred in the furtherance of pending disputes, as they relate to post-petition financing and the sale process. Further, the terms of the proposed Final DIP Order are meant to send a strong message to the market place that the Debtors are not liquidating, but continuing their daily business activities and focusing on maximizing value for the benefit of all stakeholders. A copy of the request is available at: http://bankrupt.com/misc/deb17-11502-162.pdf About Short Bark Industries Short Bark Industries, Inc. -- http://www.shortbark.com/-- provides military apparels for the Department of Defense, law enforcement industry. The company's manufactured items in the military category include military MOLLE, medium and large rucksacks, assault packs, IWCS, ACU, ABU, BDU, helmet covers, FROG, A2CU and more. It offers men and boys suits, over garments, bag, and coats. The company holds over 120,000+ square feet of manufacturing capacity with operations in Florida, Puerto Rico and Tennessee. Short Bark and EXO SBI, LLC, sought bankruptcy protection (Bankr. D. Del., Lead Case No. 17-11502) on July 10, 2017. The petitions were signed by Phil Williams, CEO and chairman. The Debtors disclosed total assets of $10 million to $50 million and total iabilities of $10 million to $50 million. Bielli & Klauder, LLC, serves as lead bankruptcy counsel to the Debtors. The Debtors hired SSG Advisors, LLC, and Young America Capital, LLC, as investment banker. On July 18, 2017, the Office of the U.S. Trustee appointed an official committee of unsecured creditors. The Committee retained Lowenstein Sandler LLP, as counsel, Gellert Scali Busenkell & Brown, LLC, as Delaware counsel, and Teneo Restructuring and Teneo Capital LLC, as investment banker. SIGNAL BAY: Incurs $570,454 Net Loss in Second Quarter ------------------------------------------------------ Signal Bay, Inc., filed with the Securities and Exchange Commission its quarterly report on Form 10-Q reporting a net loss of $570,454 on $777,218 of total revenue for the three months ended June 30, 2017, compared to a net loss of $420,864 on $116,648 of total revenue for the three months ended June 30, 2016. For the nine months ended June 30, 2017, the Company reported a net loss of $1.85 million on $2.27 million of total revenue compared to a net loss of $830,968 on $391,978 of total revenue for the same period a year ago. As of June 30, 2017, Signal Bay had $3.97 million in total assets, $3.13 million in total liabilities and $838,396 in total equity. The Company had cash on hand of $149,983 as of June 30, 2017, current assets of $466,318 and current liabilities of $1,624,136 creating a working capital deficit of $1,157,818. Current assets consisted of cash totaling $149,983, accounts receivable of $145,893 and prepaid expenses totaling $170,442. Current liabilities consisted of accounts payable and accrued liabilities of $571,233, client deposits of $77,627, current portions of capital lease obligations of $36,016, convertible notes payable net of discounts of $324,799, interest payable of $91,014, derivative liabilities of $263,143, current portions of notes payable of $34,113 and current portions of related party payables of $226,191. The Company used $429,132 of cash in operating activities which consisted of a net loss of $1,856,315 non-cash losses of $1,134,617 and changes in working capital of $292,566. Net cash used in investing activities total $55,656 during the nine months ended June 30, 2017. The Company paid net cash of $6,930 in asset purchases and acquisitions and paid $48,726 for the purchase of equipment. During the nine months ended June 30, 2017, the Company generated cash of $577,285 from financing activities. The Company received $114,500 of cash from the sale of series D preferred stock, $640,000 in cash from convertible notes payable, repayments of notes payable of $56,396, repayments of capital leases of $10,152, proceeds from the sale of common stock of $70,000 and net repayments on related party notes payable of $180,667. A full-text copy of the Form 10-Q is available for free at: https://is.gd/jmHotM About Signal Bay Signal Bay, Inc. (OTCQB: SGBY) provides advisory, management and analytical testing services to the emerging legalized cannabis industry. Signal Bay reported a net loss of $2.55 million for the year ended Sept. 30, 2016, following a net loss of $1.45 million for the year ended Sept. 30, 2015. MaloneBailey, LLP, in Houston, Texas, issued a "going concern" qualification on the consolidated financial statements for the year ended Sept. 30, 2016, stating that the Company has negative working capital, recurring losses from operations and likely needs financing in order to meet its financial obligations. These conditions raise significant doubt about the Company's ability to continue as a going concern. SIGNET JEWELERS: R2Net Acquisition No Impact on Fitch 'BB' IDR -------------------------------------------------------------- Signet Jewelers Limited's $328 million acquisition of R2Net, parent company of online jewelry retailer JamesAllen.com (James Allen), has no impact on the company's long-term debt profile or ratings, according to Fitch Ratings. Fitch continues to expect improvement to the company's recently weak comparable store sales (comps), as evidenced by the rebound in second-quarter results also announced. Following the sale of the company's prime-only credit quality receivables to Alliance Data Systems (ADS; expected to close in third-quarter 2017) and the outsourcing of the remainder of its financing operations, Fitch expects Signet to manage its capital structure in line with recently updated financial leverage targets, supporting the current 'BB'/Outlook Stable rating. The company is temporarily financing the acquisition with a senior unsecured term loan, but the company plans to redeem the term loan with proceeds from its receivables sale to ADS. The $1 billion in proceeds is expected to be deployed toward repayment of both the term loan and Signet's $600 million accounts receivable securitization facility. Following the term loan repayment, the James Allen acquisition would have minimal impact on the company's overall credit profile, as Fitch assumes James Allen generates around $200 million of revenue and minimal EBITDA. James Allen, which primarily sells diamond engagement jewelry, is one of the largest standalone online jewelers in the U.S. Online penetration of jewelry has remained significantly below the retail average, due to the emotional nature of the purchase and customer desire for an in-person shopping experience. The largest standalone players, including James Allen and Blue Nile (purchased in 2017 by a Bain Capital-led investor consortium) have exhibited somewhat weak profitability historically, due to heavy growth investments, marketing costs, and the challenges of leveraging fixed costs like supply chains with a relatively small revenue base. While Fitch does not expect the acquisition to meaningfully improve Signet's EBITDA over the next 24 to 36 months, the transaction could yield modest sales and margin upside over the longer term. Signet may benefit from James Allen's expertise in online marketing, digital imaging and customer service as it grows its own omnichannel platform. Concurrently, James Allen's profitability should benefit from leveraging Signet's existing backoffice infrastructure. Signet's ratings reflect its leading share in the specialty jewelry market in the U.S., U.K. and Canada, and modest medium term EBITDA upside from sales growth opportunities, Zale expense synergies, and in-process cost reduction efforts. The ratings also reflect recently weak operating trends and the company's updated financial policy, which yields expectations of leverage trending above 4.0x in the medium term. Fitch's expectation that comps -- which turned negative in 2016 -- could improve to flattish in 2018 is supported by Signet's announcement of -2.4% comps in second-quarter 2017 (adjusted for a holiday shift), an improvement from the past two quarters. Fitch currently projects 2017 comps will be in the negative 3% to negative 5% range before improving to flattish in 2018, assuming successful results from the company's recently implemented efforts around marketing, product introductions, and customer service. As a result of weak comps, Fitch projects EBITDA (before the impact of the divestiture of its financing operations) could decline from the $1 billion produced in 2016 to the $900 million range in 2017 as EBITDA margins are expected to contract around 100 to 150 basis points from 15.7% in 2016. Comps stabilization and the company's recently announced expense management initiatives could allow EBITDA to grow in the low-single digit range beginning 2018, before the negative impact of around $100 million on annual results due to the divestiture of its financing operations. Fitch's current rating sensitivities for Signet are as follows: A positive rating action could result from an updated financial policy and better than expected top-line and profitability trends, which together would lead to adjusted leverage being sustained under 4x. A negative rating action could result from the company's inability to stabilize comps and pro forma EBITDA, yielding adjusted leverage trending above 4.5x over the medium term. Fitch currently rates Signet as follows: Signet Jewelers Limited -- Long-Term Issuer Default Rating (IDR) 'BB'; -- Convertible preferred securities 'B+/RR6'. Signet UK Finance plc -- Guaranteed senior unsecured debt securities 'BB/RR4'. The Rating Outlook is Stable. SINO UNITED: Inability to Obtain Financing Cast Going Concern Doubt ------------------------------------------------------------------- Sino United Worldwide Consolidated Ltd. filed its quarterly report on Form 10-Q, disclosing a net loss of $63,128 on $1,221,013 of net revenues for the three months ended June 30, 2017, compared with a net loss of $54,524 on $490,119 of net revenues for the same period in 2016. For the six months ended June 30, 2017, the Company listed a net income of $3,001,120 on $5,043,278 of net revenues, compared to a net income of $1,204 on $1,102,123 of net revenues for the same period in the prior year. The Company's balance sheet at June 30, 2017, showed $5.76 million in total assets, $2.51 million in total liabilities, and a stockholders' equity of $3.24 million. There are no assurances that the Company will be able to either (1) achieve a level of revenues adequate to generate sufficient cash flow from operations; or (2) obtain additional financing through either private placement, public offerings and/or bank financing necessary to support the Company's working capital requirements. To the extent that funds generated from any private placements, public offering and/or bank financing are insufficient to support the Company's working capital requirements, the Company will have to raise additional working capital from additional financing. No assurance can be given that additional financing will be available, or if available, will be on terms acceptable to the Company. If adequate working capital is not available, the Company may not be able continue its operations. These conditions raise substantial doubt about the Company's ability to continue as a going concern. A copy of the Form 10-Q is available at: https://is.gd/A4vb55 Sino United Worldwide Consolidated Ltd. is engaged in electronic products and general cargo trading and related consulting service business through its subsidiary named Jin Chih International, Ltd in Taiwan. The Company focuses on providing greentech products outside of China. The Company plans to expand the green energy and technology business in the United States and globally. SMARTY HAD A PARTY: Hires Carmody MacDonald as Counsel ------------------------------------------------------ Smarty Had A Party, LLC, seeks authority from the U.S. Bankruptcy Court for the Eastern District of Missouri to employ Carmody MacDonald P.C., as counsel to the Debtor. Smarty Had A Party requires Carmody MacDonald to: a. advise the Debtor with respect to its rights, power and duties in the bankruptcy case; b. assist and advise the Debtor in its consultations with any appointed committee relative to the administration of the bankruptcy case; c. assist the Debtor in analyzing the claims of creditors and negotiating with such creditors; d. assist the Debtor with investigation of the assets, liabilities and financial condition of the Debtor and reorganizing the Debtor's businesses in order to maximize the value of the Debtor's assets for the benefit of all creditors; e. advise the Debtor in connection with the sale of assets or business; f. assist the Debtor in its analysis of and negotiation with any appointed committee or any third party concerning matters related to, among other things, the terms of a plan of reorganization; g. assist and advise the Debtor with respect to any communications with the general creditor body regarding significant matters in the bankruptcy case; h. commence and prosecute necessary and appropriate actions and proceedings on behalf of the Debtor; i. review, analyze or prepare, on behalf of Debtor, all necessary applications, motions, answers, orders, reports, schedules, pleadings and other documents; j. represent the Debtor at all hearings and other proceedings; k. confer with other professional advisors retained by the Debtor in providing advice to the Debtor; l. perform all other necessary legal services in the bankruptcy case as may be requested by Debtor in the Chapter 11 proceedings; and m. assist and advise the Debtor regarding pending arbitration and litigation matters in which the Debtor may be involved, including continued prosecution or defense of actions and negotiations on the Debtor's behalf. Carmody MacDonald will be paid at the hourly rate of $160 to $380. As of the Petition Date, the Firm has been paid the sum of $20,777 for services performed prior to the Petition Date in preparation for the filing. It will also be reimbursed for reasonable out-of-pocket expenses incurred. Spencer P. Desai, a partner of Carmody MacDonald P.C., assured the Court that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtors and its estates. Carmody MacDonald can be reached at: Spencer P. Desai, Esq. CARMODY MACDONALD P.C. 120 South Central Avenue, Suite 1800 St. Louis, MO 63105 Tel:(314) 854-8600 Fax (314) 854-8660 E-mail: spd@carmodymacdonald.com About Smarty Had A Party, LLC Based in Saint Louis, Missouri, Smarty Had A Party LLC, a/k/a Smarty Pants -- http://www.smartyhadaparty.com/-- sells disposable plastic plates and catering supplies for wedding, baby shower, birthday party, bridal shower, graduation party and special events. It also provides wedding & party design and wholesale cater supply. The Debtor sought protection under Chapter 11 of the Bankruptcy Code (Bankr. E.D. Mo. Case No. 17-45088) on July 26, 2017. The petition was signed by Amy Nevad, chief restructuring officer. At the time of the filing, the Debtor disclosed that it had estimated assets of less than $50,000 and liabilities of $1 million to $10 million. Carmody MacDonald P.C. represents the Debtor as bankruptcy counsel. STINAR HG: Needs More Time to Stabilize Funds, File Chapter 11 Plan ------------------------------------------------------------------- Stinar HG, Inc. and Oakridge Holdings, Inc. ask the U.S. Bankruptcy Court for the District of Minnesota to extend the period of time within which they can exclusively file a Plan of Reorganization up to January 16, 2018. The Court will hold a hearing on the Debtors' Motion September 13, 2017 at 10:30 a.m. The Debtors relate that in August of 2016, Stinar entered into two agreements with Kruckeberg Industries, LLC. The agreements consist of a long-term management agreement and an agreement to sell all of Stinar's assets to Kruckeberg. Based on the status of Stinar's parent corporation as a publicly traded company, Oakridge received advice that they would need to have a shareholder vote to dispose of Stinar's assets. Stinar believes it would be impossible to obtain the vote of a majority of its shareholders for the sale of the assets of Stinar as the shares of Oakridge were originally issued in 1961 and there was little trading in the company. On the other hand, Oakridge believes that many of the shareholders on the company's shareholder list are either deceased, aged or cannot be found. As such, the two companies therefore chose to enter into a Chapter 11 Reorganization filing to provide an exit strategy for the investors through either reorganization or a sale of Stinar's assets, which will: (a) provide cash flow support for the company's operations, (b) restructure Stinar's secured debt, and (c) eliminate the significant expenses inherent in being a publicly traded company, expenses that Stinar, as the only operating entity of Oakridge, is forced to pay. Accordingly, the Debtors relate that prior to the filing of the Chapter 11 bankruptcy, both the Management Agreement and the Asset Purchase Agreement were terminated by mutual agreement of the Parties, however, Kruckeberg Financial stepped in and became the DIP Funding Source that has allowed Stinar to begin to find its way out of the economic problems it was having prior to its bankruptcy filing. Consequently, the Debtor tells the Court there have been significant progress being made towards bringing Stinar back to life -- as can be seen by the monthly financials -- which show increases in sales and the projections filed recently with the Motion to Allow Continued Use of Cash Collateral which show even greater increases. The Debtor contends that although Kruckeberg Financial is assisting the management of the company on a voluntary basis and is allowing Stinar's sales force to concentrate on selling rather than on putting out management fires, however, the Debtors cannot reasonably prepare plans for reorganization under the circumstances by September 18, 2017. With regard to Stinar, the Debtors claim there is not enough history of processing of orders in the "new normal" course of business to be able to predict how long it would take to pay off all creditors in full, which is the goal of the Debtors. As to Oakridge, since all funds needed to pay creditors will come from Stinar, its ability to organize (a liquidating plan is likely) cannot be prepared until the Stinar plan is prepared. Further, the Debtors tell the Court that they are also negotiating sales contracts and orders in excess of two million dollars that will not be finalized until later in the year. Therefore, the Debtors assert that more time needs to pass to be able to gather the information necessary to determine the length of time it will take to pay off creditors and provide certainty for any exit financing. Meanwhile, presentation of alternate plans by other parties, although unlikely, would undermine the ability of Debtor to concentrate on its operations and likely would not allow payment of creditors in full. The Debtors believe that an exclusivity extension will grant all parties the opportunity to gain critical information regarding the Debtor's performance now that the company has the financing to go back to normal operations, negotiate with creditors, find additional financing (if needed), and put forth a confirmable plan. About Stinar HG & Oakrdige Stinar HG, Inc., d/b/a The Stinar Corporation, is a Minnesota-based company that manufactures ground support equipment for the aviation industry. The late Frank Stinar founded Stinar Corp. in 1946. Stinar's products are used to load, service, and maintain all types of aircraft for both government and commercial applications. The company's corporate headquarters and its 40,000-square foot manufacturing facility are in Eagan, Minnesota. On June 29, 1998, Oakridge Holdings, Inc. (OTCMKTS:OKRGQ), a publicly held Minnesota-based company, became the new owner of Stinar. Currently, Stinar is the only asset of Oakridge Holdings. The largest shareholder of Oakridge Holdings is Robert Harvey who holds approximately 21% of the outstanding shares. Oakridge Holdings and operating unit Stinar HG filed bankruptcy Chapter 11 petitions (Bankr. D. Minn. Case Nos. 17-31669 and 17-31670, respectively) on May 22, 2017. Robert C. Harvey, CEO and president, signed the petitions. On May 26, 2017, the Court entered an Order allowing the joint administration of these Chapter 11 cases under Bankr. D. Minn. Case No. 17-31670. At the time of filing, debtor Oakridge Holdings disclosed total assets of $990,237 and total liabilities of $2.17 million, while debtor Stinar HG disclosed total assets of $8.22 million and total liabilities of $2.91 million. The cases are assigned to Judge Kathleen H Sanberg. The Debtors are represented by Kenneth Edstrom, Esq., at Sapientia Law Group. STUDIO TWENTYEIGHT: Taps Stichter Riedel as Legal Counsel --------------------------------------------------------- Studio Twentyeight, Inc. seeks approval from the U.S. Bankruptcy Court for the Middle District of Florida to hire legal counsel in connection with its Chapter 11 case. The Debtor proposes to employ Stichter, Riedel, Blain & Postler, P.A. to, among other things, give legal advice regarding its duties under the Bankruptcy Code; represent it in negotiations with potential financing sources; and assist in the preparation of a plan of reorganization. The firm received a retainer of $7,500 from non-debtor sources prior to the petition date. Mark Robens, Esq., disclosed in a court filing that his firm is "disinterested" as defined in section 101(14) of the Bankruptcy Code. Stichter Riedel can be reached through: Scott A. Stichter, Esq. Mark F. Robens, Esq. Stichter, Riedel, Blain & Postler, P.A. 110 East Madison Street, Suite 200 Tampa, FL 33602 Phone: (813) 229-0144 Fax: (813) 229-1811 Email: sstichter@srbp.com Email: mrobens@srbp.com About Studio Twentyeight Studio Twentyeight, Inc., provides training in music, the arts and dance to more than 700 existing clients, and sells musical instruments, equipment and apparel to its customers at its business, which operates at The Shops at Wiregrass, Wesley Chapel, Florida. Studio Twentyeight filed a Chapter 11 petition (Bankr. M.D. Fla. Case No. 17-06911) on August 4, 2017. Steven Morgan, its president, signed the petition. At the time of the filing, the Debtor disclosed that it had estimated assets of less than $500,000 and liabilities of less than $1 million. SUNSET POINT: Sept. 11 Hearing on Trustee's Bid to Sell Assets -------------------------------------------------------------- The Honorable Dwight H. Williams, Jr., will hold a final hearing on Sept. 11, 2017, at 3:00 p.m. in courtroom 4-C of the United States Courthouse located at One Church Street, Montgomery, Alabama 36104, to consider the merits of the request of Mr. Cecil M. Tipton, Jr., to sell the land, buildings and other assets of the Sunset Point Condominium Owners Association, Inc. Mr. Tipton has been appointed the Chapter 7 trustee in the bankruptcy case of the Sunset Point Condominium Owners Association, Inc. The Sunset Point Condominiums are located at Stillwaters, Dadeville, Tallapoosa County, Alabama. On May 11, 2017, attorneys for the Chapter 7 Trustee filed a motion seeking authority for Mr. Tipton, in his capacity as Trustee, to sell the land, buildings and other assets of SPCTOA free and clear of all liens and encumbrances. The Chapter 7 Trustee received an offer to purchase those assets for a total purchase price of $760,000. In the motion, the Chapter 7 Trustee has alleged that it is in the best interest of the bankruptcy estate, the timeshare owners and the creditors of the Debtor that the assets be sold and that the funds received from the sale be distributed in accordance with applicable bankruptcy law and further order of the bankruptcy court. At this time the Chapter 7 Trustee's attorney is attempting personal service of a copy of the motion and other pertinent documentation on each and every timeshare owner of record according to the books and records maintained by the secretary of SPCTOA. The secretary represented that some of the addresses the association had for some of the owners were admittedly insufficient or no longer valid. The Chapter 7 Trustee and his attorney are making diligent search to find actual addresses for each and every timeshare owner who can be identified so that each can receive actual notice of these proceedings. However, due to the fact that there are approximately 320 timeshare owners the bankruptcy court has approved potential service by publication of this notice to any and all owners whose current addresses cannot be ascertained. All persons or entities who claim an interest as a timeshare owner may contact the law firm or Parnell & Parnell, P.A. to receive an actual copy of the motion and other documentation pertaining to the Trustee's motion by providing a valid address for mailing. This documentation will include a complete copy of the motion filed by the Trustee seeking permission to sell, a list of all condominium timeshare owners and a record of any amounts each is past due for past dues and assessments and other information. These documents are also available for review and inspection at the bankruptcy Clerk's office of the United States Bankruptcy Court for the Middle District of Alabama in Montgomery. The Chapter 7 Trustee is seeking to move forward as quickly as possible to consummate the sale so that unnecessary expense in maintaining the property can be avoided and before any further material depreciation of the property occurs. Written objections to the Trustee's request are due 5:00 p.m. on September 6, 2017. In the event the court approves the sale of the association's assets and the sale closes, then the funds received from the sale of those assets will be disbursed at a later date in strict accordance with applicable bankruptcy law and further order of the bankruptcy court. The only asset of the debtor that is not being proposed to be sold to the purchaser in this transaction is the accounts receivable due the association by its various owners for past unpaid condominium dues and assessments. According to the records of the secretary of the SPCTOA as of the filing date of this bankruptcy case the accounts receivable totaled approximately $360,000. The Chapter 7 Trustee will make reasonable efforts to collect those amounts in addition to the sale proceeds that are received from any approved sale. Further notice will be provided to all timeshare owners of a proposed distribution and a date for hearing to approve such a distribution at a later date. The governing body of the Sunset Point Condominiums timeshare owner's association ("SPCTOA") approved the filing of a Chapter 7 bankruptcy petition for the association and a bankruptcy case was filed (Bankr. M.D. Ala. Case No. 16-81278) on Sept. 30, 2016. Mr. Tipton may be reached at: Mr. Cecil M. Tipton, Jr. Ray & Tipton 606 Avenue A Opelika, AL 36801 Tel: (334) 742-9400 Mr. Tipton is represented by: Charles N. Parnell, III, Esq. Parnell & Parnell, P.A. P.O. Box 2189 Montgomery, AL 36102-2189 Tel: (334) 269-8460 TARTAN PINES: Taps Espy Metcalf as Legal Counsel ------------------------------------------------ Tartan Pines Development Co., Inc. seeks approval from the U.S. Bankruptcy Court for the Middle District of Alabama to hire legal counsel in connection with its Chapter 11 case. The Debtor proposes to employ Espy, Metcalf & Espy, P.C. to, among other things, give legal advice regarding its duties under the Bankruptcy Code and assist in the preparation of a bankruptcy plan. J. Kaz Espy, Esq., and Collier Espy, Jr., Esq., the attorneys who will be handling the case, will charge $280 per hour and $350 per hour, respectively. Both will charge $100 per hour for travel time and $50 per hour for secretarial time. The attorneys disclosed in a court filing that they do not represent any interest adverse to the Debtor. Espy Metcalf can be reached through: Kaz J. Espy, Esq. Collier Espy, Jr., Esq. Espy, Metcalf & Espy, P.C. PO Drawer 6504 326 North Oates Street 36303 Dothan, AL 36302-6504 Tel: 334-793-6288 Fax: 334-712-1617 Email: lynnia@espymetcalf.com About Tartan Pines Tartan Pines Development Co., Inc. is a real estate developer, which was incorporated in 1998 and is based in Enterprise, Alabama. It is a small business debtor as defined in 11 U.S.C. Section 101(51D). The Debtor filed for Chapter 11 bankruptcy protection (Bankr. M.D. Ala. Case No. 17-11565) on Aug. 15, 2017, estimating its assets at between $1 million and $10 million and liabilities at between $500,000 and $1 million. The petition was signed by Robert Bishop, its director. Judge William R. Sawyer presides over the case. TEMPLE OF HOPE: Needs More Time to Complete Asset Sale, File Plan ----------------------------------------------------------------- Temple of Hope Baptist Church, Inc., asks the U.S. Bankruptcy Court for the Northern District of Alabama to extend the exclusive period for filing a Plan of Reorganization and the exclusive period for soliciting acceptance of such a plan through and including October 29 and December 28, 2017, respectively. The Debtor has not, to date, filed a Disclosure Statement and Plan of Reorganization. The Debtor has previously sought an extension of the exclusive periods for filing and soliciting acceptance of a plan. The Debtor's exclusive periods presently expire on August 30 and October 29, 2017, respectively. The Debtor contends that it needs additional time for filing and soliciting acceptance for a plan in order to allow for the sale of the commercial property to conclude with certainty. The Debtor relates that a Motion to Sell is presently set before the Court on August 30. The Debtor asserts that upon the sale of its commercial property, all filed claims will be paid in full and will obviate the need for the filing of a Disclosure Statement and Plan of Reorganization. About Temple of Hope Baptist Church Temple of Hope Baptist Church, Inc., is a religious organization which operates exclusively for religious, charitable, and distinct ecclesiastical purposes in Birmingham, Alabama. Temple of Hope Baptist Church filed a Chapter 11 petition (Bankr. N.D. Ala. Case No. 17-00415) on Feb. 1, 2017. The petition was signed by Oliver L. Jones, Pastor. At the time of filing, the Debtor had $100,000 to $500,000 in estimated assets and $50,000 to $100,000 in estimated liabilities. The Debtor is represented by Frederick Mott Garfield, Esq., at Spain & Gillon and Gina H. McDonald, Esq., at Gina H. McDonald & Associates, LLC. No trustee or examiner has been appointed in the Debtor's case. An official committee of unsecured creditors could not be formed due to lack of interest. THERMAGEM LLC: U.S. Trustee Unable to Appoint Committee ------------------------------------------------------- The Office of the U.S. Trustee on Aug. 24 disclosed in a court filing that no official committee of unsecured creditors has been appointed in the Chapter 11 case of Thermagem LLC. About Thermagem LLC Based in Miami, Florida, Thermagem LLC filed a Chapter 11 petition (Bankr. S.D. Fla. Case no. 17-18531) on July 6, 2017. The petition was signed by Eran Brosh, president and managing member. The case is assigned to Judge Jay A. Cristol. Stephen C. Breuer, Esq., at Moffa & Breuer, PLLC represents the Debtor. As of time of filing, the Debtor estimates $100,000 to $500,000 in assets and $1 million to $10 million in liabilities. TK HOLDINGS: Creditors' Panel Hires Epiq as Information Agent ------------------------------------------------------------- The Official Committee of Unsecured Creditors of TK Holdings Inc., et al., seeks authorization from the U.S. Bankruptcy Court for the District of Delaware to retain Epiq Bankruptcy Solutions, LLC, as information agent to the Committee. The Committee requires Epiq to: -- prepare and serve the required notices; -- after service of a particular notice, whether by regular mail, overnight or hand delivery, email or facsimile service, filing with the Clerk's office an affidavit of service that includes a copy of the notice involved, a list of persons to whom the notice was mailed and the date and manner of mailing; -- update a noticing database to reflect undeliverable or changed addresses; -- coordinate publication of notices in periodicals and other media; -- provide other noticing and related administrative services as may be requested from time to time; -- promptly comply with further conditions and requirements as the Court may at any time prescribe; and -- ensure compliance with applicable federal, state, municipal, and local statutes, ordinances, rules, regulations, orders and other requirements. Epiq will be paid at these hourly rates: Consultants/Directors/Vice Presidents $160–$190 Case Managers $70–$165 IT/Programming $65–$85 Clerical/Administrative Support $25–$45 Epiq will also be reimbursed for reasonable out-of-pocket expenses incurred. Kate Mailloux, a senior director of consulting at Epiq Bankruptcy Solutions, LLC, assured the Court the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtors and their estates. Epiq can be reached at: Kate Mailloux Epiq Bankruptcy Solutions, LLC 777 Third Avenue, 12th Floor New York, New York 10017 Tel: (646) 282-2493 About TK Holdings Inc. Japan-based Takata Corporation (TYO:7312) -- http://www.takata.com/en/-- develops, manufactures and sells safety products for automobiles. The Company offers seatbelts, airbags, steering wheels, child seats and trim parts. Headquartered in Tokyo, Japan, Takata operates 56 plants in 20 countries with approximately 46,000 global employees worldwide. The Company has subsidiaries located in Japan, the United States, Brazil, Germany, Thailand, Philippines, Romania, Singapore, Korea, China and other countries. Takata Corp. filed for bankruptcy protection in Tokyo and the U.S., amid recall costs and lawsuits over its defective airbags. Takata and its Japanese subsidiaries commenced proceedings under the Civil Rehabilitation Act in Japan in the Tokyo District Court on June 25, 2017. Takata's main U.S. subsidiary TK Holdings Inc. and 11 of its U.S. and Mexican affiliates each filed voluntary petitions under Chapter11 of the U.S. Bankruptcy Code (Bankr. D. Del. Lead Case No. 17-11375) on June 25, 2017. Together with the bankruptcy filings, Takata announced it has reached a deal to sell all its global assets and operations to Key Safety Systems (KSS) for US$1.588 billion. Nagashima Ohno & Tsunematsu is Takata's counsel in the Japanese proceedings. Weil, Gotshal & Manges LLP and Richards, Layton & Finger, P.A., are serving as counsel in the U.S. cases. PricewaterhouseCoopers is serving as financial advisor, and Lazard is serving as investment banker to Takata. Ernst & Young LLP is tax advisor. Prime Clerk is the claims and noticing agent. Skadden, Arps, Slate, Meagher & Flom LLP is serving as legal counsel, KPMG is serving as financial advisor, Jefferies LLC is acting as lead financial advisor. UBS Investment Bank also provides financial advice to KSS. On June 28, 2017, TK Holdings, as the foreign representative of the Chapter 11 Debtors, obtained an order of the Ontario Superior Court of Justice (Commercial List) granting, among other things, a stay of proceedings against the Chapter 11 Debtors pursuant to Part IV of the Companies' Creditors Arrangement Act. The Canadian Court appointed FTI Consulting Canada Inc. as information officer. TK Holdings, as the foreign representative, is represented by McCarthy Tetrault LLP. The U.S. Trustee has appointed an Official Committee of Unsecured Trade Creditors and a separate Official Committee of Tort Claimants in the Chapter 11 cases. The Official Committee of Unsecured Creditors has selected Christopher M. Samis, Esq., L. Katherine Good, Esq., and Kevin F. Shaw, Esq., at Whiteford, Taylor & Preston LLC, in Wilmington, Delaware; Dennis F. Dunne, Esq., Abhilash M. Raval, Esq., and Tyson Lomazow, Esq., at Milbank Tweed Hadley & McCloy LLP, in New York; and Andrew M. Leblanc, Esq., at Milbank, Tweed, Hadley & McCloy LLP, in Washington, D.C., as its bankruptcy counsel. The Committee retained Epiq Bankruptcy Solutions, LLC, as information agent, Zolfo Cooper, LLC, as financial advisor, and Moelis & Company, LLC, as investment banker. The committee representing TK Holdings Inc.'s tort claimants retained Pachulski Stang Ziehl & Jones LLP as its legal counsel; Alvarez & Marshal North America, LLC as financial advisor; Gilbert LLP as insurance counsel; and Sakura Kyodo Law Offices as special counsel. Roger Frankel, the legal representative for future personal injury claimants, has retained Ashby & Geddes PA and Frankel Wyron LLP as his counsel. Chapter 15 Cases Takata Corporation ("TKJP") and affiliates Takata Kyushu Corporation and Takata Services Corporation commenced Chapter 15 cases (Bankr. D. Del. Case Nos. 17-11713 to 17-11715) on Aug. 9, 2017, to seek U.S. recognition of the civil rehabilitation proceedings in Japan. The Hon. Brendan Linehan Shannon oversees the Chapter 15 cases. Young, Conaway, Stargatt & Taylor, LLP, serves as Takata's counsel in the Chapter 15 cases. TK HOLDINGS: Creditors' Panel Hires Milbank Tweed as Counsel ------------------------------------------------------------ The Official Committee of Unsecured Creditors of TK Holdings Inc., et al., seeks authorization from the U.S. Bankruptcy Court for the District of Delaware to retain Milbank Tweed Hadley & McCloy LLP, as counsel to the Committee. The Committee requires Milbank Tweed to: (a) participate in in-person and telephonic meetings of the Committee and any subcommittees formed thereby, and otherwise advise the Committee with respect to its rights, powers and duties in the Chapter 11 Cases; (b) assist and advise the Committee in its consultations, meetings and negotiations with the Debtors and all other parties in interest regarding the administration of the Chapter 11 Cases; (c) assist the Committee in analyzing the claims asserted against and interests asserted in the Debtors, and in negotiating with the holders of such claims and interests and bringing, or participating in, objections or estimation proceedings with respect to such claims or interests; (d) assist with the Committee's review of the Debtors' Schedules of Assets and Liabilities, Statement of Financial Affairs and other financial reports prepared by the Debtors, and the Committee's investigation of the acts, conduct, assets, liabilities and financial condition of the Debtors and of the historic and ongoing operation of their businesses; (e) assist the Committee in its analysis of, and negotiations with, the Debtors or any third party related to, among other things, financings, asset disposition transactions, compromises of controversies, assumption or rejection of executory contracts and unexpired leases; (f) assist the Committee in its analysis of, and negotiations with, the Debtors or any third party related to the negotiation, formulation, confirmation and implementation of a chapter 11 plan or plans for the Debtors, and all documentation related thereto; (g) assist and advise the Committee with respect to its communications with the general creditor body regarding significant matters in the Chapter 11 Cases; (h) respond to inquiries from individual creditors as to the status of, and developments in, the Chapter 11 Cases; (i) represent the Committee at all hearings and other proceedings before the Court and such other courts or tribunals, as appropriate; (j) review and analyze all complaints, motions, applications, orders and other pleadings filed with the Court, and advise the Committee with respect to its position thereon and the filing of any response thereto; (k) assist the Committee in preparing pleadings and applications, and pursuing or participating in adversary proceedings, contested matters and administrative proceedings as may be necessary or appropriate in furtherance of the Committee's interests and objectives; and (l) perform such other legal services as may be necessary or as may be requested by the Committee in accordance with the Committee's powers and duties as set forth in the Bankruptcy Code. Milbank Tweed will be paid at these hourly rates: Partners $1,015-$1,395 Of Counsel $1,015-$1,225 Associates $390-$950 Legal Assistants $200-$345 Milbank Tweed will be paid a retainer in the amount of $350,000. Milbank Tweed will also be reimbursed for reasonable out-of-pocket expenses incurred. In accordance with Appendix B-Guidelines for Reviewing Applications for Compensation and Reimbursement of Expenses Filed under 11 U.S.C. Sec. 330 for Attorneys in Larger Chapter 11 Cases, the following is provided in response to the request for additional information: Question: Did you agree to any variations from, or alternatives to, your standard or customary billing arrangements for this engagement? Response: No. Question: Do any of the professionals included in this engagement vary their rate based on the geographic location of the bankruptcy case? Response: No. Question: If you represented the client in the 12 months prepetition, disclose your billing rates and material financial terms for the prepetition engagement, including any adjustments during the 12 months prepetition. If your billing rates and material financial terms have changed postpetition, explain the difference and the reasons for the difference. Response: Milbank Tweed did not represent the Committee prior to the commencement of the Chapter 11 case. Milbank Tweed has in the past represented, currently represents, and may represent in the future certain Committee members and their affiliates in their capacities as members of official committees in other chapter 11 cases or individually in matters wholly unrelated to the Chapter 11 case. Question: Has your client approved your prospective budget and staffing plan, and, if so for what budget period? Response: Milbank Tweed is in the process of developing a prospective budget and staffing plan for the Committee's review and approval. Furthermore, Milbank Tweed understands that the Committee, along with the Debtors and the U.S. Trustee, will maintain active oversight of Milbank Tweed's billing practice. Abhilash M. Raval, a partner of Milbank Tweed Hadley & McCloy LLP, assured the Court that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and (a) is not creditors, equity security holders or insiders of the Debtors; (b) has not been, within two years before the date of the filing of the Debtors' chapter 11 petition, directors, officers or employees of the Debtors; and (c) does not have an interest materially adverse to the interest of the estate or of any class of creditors or equity security holders, by reason of any direct or indirect relationship to, connection with, or interest in, the Debtors, or for any other reason. Milbank Tweed can be reached at: Abhilash M. Raval, Esq. MILBANK TWEED HADLEY & MCCLOY LLP 28 Liberty St. New York, NY 10005 Tel: (212) 530-5000 Fax: (212) 530-5219 E-mail: araval@milbank.com About TK Holdings Inc. Japan-based Takata Corporation (TYO:7312) -- http://www.takata.com/en/-- develops, manufactures and sells safety products for automobiles. The Company offers seatbelts, airbags, steering wheels, child seats and trim parts. Headquartered in Tokyo, Japan, Takata operates 56 plants in 20 countries with approximately 46,000 global employees worldwide. The Company has subsidiaries located in Japan, the United States, Brazil, Germany, Thailand, Philippines, Romania, Singapore, Korea, China and other countries. Takata Corp. filed for bankruptcy protection in Tokyo and the U.S., amid recall costs and lawsuits over its defective airbags. Takata and its Japanese subsidiaries commenced proceedings under the Civil Rehabilitation Act in Japan in the Tokyo District Court on June 25, 2017. Takata's main U.S. subsidiary TK Holdings Inc. and 11 of its U.S. and Mexican affiliates each filed voluntary petitions under Chapter11 of the U.S. Bankruptcy Code (Bankr. D. Del. Lead Case No. 17-11375) on June 25, 2017. Together with the bankruptcy filings, Takata announced it has reached a deal to sell all its global assets and operations to Key Safety Systems (KSS) for US$1.588 billion. Nagashima Ohno & Tsunematsu is Takata's counsel in the Japanese proceedings. Weil, Gotshal & Manges LLP and Richards, Layton & Finger, P.A., are serving as counsel in the U.S. cases. PricewaterhouseCoopers is serving as financial advisor, and Lazard is serving as investment banker to Takata. Ernst & Young LLP is tax advisor. Prime Clerk is the claims and noticing agent. Skadden, Arps, Slate, Meagher & Flom LLP is serving as legal counsel, KPMG is serving as financial advisor, Jefferies LLC is acting as lead financial advisor. UBS Investment Bank also provides financial advice to KSS. On June 28, 2017, TK Holdings, as the foreign representative of the Chapter 11 Debtors, obtained an order of the Ontario Superior Court of Justice (Commercial List) granting, among other things, a stay of proceedings against the Chapter 11 Debtors pursuant to Part IV of the Companies' Creditors Arrangement Act. The Canadian Court appointed FTI Consulting Canada Inc. as information officer. TK Holdings, as the foreign representative, is represented by McCarthy Tetrault LLP. The U.S. Trustee has appointed an Official Committee of Unsecured Trade Creditors and a separate Official Committee of Tort Claimants in the Chapter 11 cases. The Official Committee of Unsecured Creditors has selected Christopher M. Samis, Esq., L. Katherine Good, Esq., and Kevin F. Shaw, Esq., at Whiteford, Taylor & Preston LLC, in Wilmington, Delaware; Dennis F. Dunne, Esq., Abhilash M. Raval, Esq., and Tyson Lomazow, Esq., at Milbank Tweed Hadley & McCloy LLP, in New York; and Andrew M. Leblanc, Esq., at Milbank, Tweed, Hadley & McCloy LLP, in Washington, D.C., as its bankruptcy counsel. The Committee retained Epiq Bankruptcy Solutions, LLC, as information agent, Zolfo Cooper, LLC, as financial advisor, and Moelis & Company, LLC, as investment banker. The committee representing TK Holdings Inc.'s tort claimants retained Pachulski Stang Ziehl & Jones LLP as its legal counsel; Alvarez & Marshal North America, LLC as financial advisor; Gilbert LLP as insurance counsel; and Sakura Kyodo Law Offices as special counsel. Roger Frankel, the legal representative for future personal injury claimants, has retained Ashby & Geddes PA and Frankel Wyron LLP as his counsel. Chapter 15 Cases Takata Corporation ("TKJP") and affiliates Takata Kyushu Corporation and Takata Services Corporation commenced Chapter 15 cases (Bankr. D. Del. Case Nos. 17-11713 to 17-11715) on Aug. 9, 2017, to seek U.S. recognition of the civil rehabilitation proceedings in Japan. The Hon. Brendan Linehan Shannon oversees the Chapter 15 cases. Young, Conaway, Stargatt & Taylor, LLP, serves as Takata's counsel in the Chapter 15 cases. TK HOLDINGS: Creditors' Panel Hires Whiteford as Delaware Counsel ----------------------------------------------------------------- The Official Committee of Unsecured Creditors of TK Holdings Inc., et al., seeks authorization from the U.S. Bankruptcy Court for the District of Delaware to retain Whiteford Taylor & Preston LLC, as Delaware counsel to the Committee. The Committee requires Whiteford Taylor to: a. provide legal advice regarding local rules, practices, and procedures and provide substantive and strategic advice on how to accomplish Committee goals, bearing in mind that the Delaware Bankruptcy Court relies on Delaware counsel such as Whiteford Taylor to be involved in all aspects of each bankruptcy proceeding; b. draft, review and comment on drafts of documents to ensure compliance with local rules, practices, and procedures; c. draft, file and service of documents as requested by Milbank; d. prepare certificates of no objection, certifications of counsel, and notices of fee applications; e. print of documents and pleadings for hearings, prepare binders of documents and pleadings for hearings; f. appear in Court and at any meetings of creditors on behalf of the Committee in its capacity as Delaware counsel with Milbank; g. monitor the docket for filings and coordinating with Milbank on pending matters that may need responses; h. participate in calls with the Committee; and i. provide additional administrative support to Milbank, as requested. Whiteford Taylor will be paid at these hourly rates: Christopher M. Samis, Partner $550 L. Katherine Good, Partner $525 Aaron H. Stulman, Associate $375 Christopher L. Lano, Paralegal $255 Whiteford Taylor will also be reimbursed for reasonable out-of-pocket expenses incurred. In accordance with Appendix B-Guidelines for Reviewing Applications for Compensation and Reimbursement of Expenses Filed under 11 U.S.C. Sec. 330 for Attorneys in Larger Chapter 11 Cases, the following is provided in response to the request for additional information: Question: Did you agree to any variations from, or alternatives to, your standard or customary billing arrangements for this engagement? Response: No. Question: Do any of the professionals included in this engagement vary their rate based on the geographic location of the bankruptcy case? Response: No. Question: If you represented the client in the 12 months prepetition, disclose your billing rates and material financial terms for the prepetition engagement, including any adjustments during the 12 months prepetition. If your billing rates and material financial terms have changed postpetition, explain the difference and the reasons for the difference. Response: Whiteford Taylor did not represent the Committee or any Committee member in the 12 months prepetition. Whiteford Taylor may represent in the future certain Committee members and their affiliates in their capacities as members of official committees in other chapter 11 cases or individually in matters wholly unrelated to the chapter 11 cases. Question: Has your client approved your prospective budget and staffing plan, and, if so for what budget period? Response: No. At the time of the filing of the Application, Whiteford Taylor has not yet submitted a prospective budget and staffing plan to the Committee, but it intends to do so and obtain approval of same in the near term. Christopher M. Samis, a partner of Whiteford Taylor & Preston LLC, assured the Court that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and (a) is not creditors, equity security holders or insiders of the Debtors; (b) has not been, within two years before the date of the filing of the Debtors' chapter 11 petition, directors, officers or employees of the Debtors; and (c) does not have an interest materially adverse to the interest of the estate or of any class of creditors or equity security holders, by reason of any direct or indirect relationship to, connection with, or interest in, the Debtors, or for any other reason. Whiteford Taylor can be reached at: Christopher M. Samis, Esq. WHITEFORD TAYLOR & PRESTON LLC 405 North King Street, Suite 500 Wilmington, DE 19801-3700 Tel: (302) 353-4144 Fax: (302) 661-7950 E-mail: csamis@wtplaw.com About TK Holdings Inc. Japan-based Takata Corporation (TYO:7312) -- http://www.takata.com/en/-- develops, manufactures and sells safety products for automobiles. The Company offers seatbelts, airbags, steering wheels, child seats and trim parts. Headquartered in Tokyo, Japan, Takata operates 56 plants in 20 countries with approximately 46,000 global employees worldwide. The Company has subsidiaries located in Japan, the United States, Brazil, Germany, Thailand, Philippines, Romania, Singapore, Korea, China and other countries. Takata Corp. filed for bankruptcy protection in Tokyo and the U.S., amid recall costs and lawsuits over its defective airbags. Takata and its Japanese subsidiaries commenced proceedings under the Civil Rehabilitation Act in Japan in the Tokyo District Court on June 25, 2017. Takata's main U.S. subsidiary TK Holdings Inc. and 11 of its U.S. and Mexican affiliates each filed voluntary petitions under Chapter11 of the U.S. Bankruptcy Code (Bankr. D. Del. Lead Case No. 17-11375) on June 25, 2017. Together with the bankruptcy filings, Takata announced it has reached a deal to sell all its global assets and operations to Key Safety Systems (KSS) for US$1.588 billion. Nagashima Ohno & Tsunematsu is Takata's counsel in the Japanese proceedings. Weil, Gotshal & Manges LLP and Richards, Layton & Finger, P.A., are serving as counsel in the U.S. cases. PricewaterhouseCoopers is serving as financial advisor, and Lazard is serving as investment banker to Takata. Ernst & Young LLP is tax advisor. Prime Clerk is the claims and noticing agent. Skadden, Arps, Slate, Meagher & Flom LLP is serving as legal counsel, KPMG is serving as financial advisor, Jefferies LLC is acting as lead financial advisor. UBS Investment Bank also provides financial advice to KSS. On June 28, 2017, TK Holdings, as the foreign representative of the Chapter 11 Debtors, obtained an order of the Ontario Superior Court of Justice (Commercial List) granting, among other things, a stay of proceedings against the Chapter 11 Debtors pursuant to Part IV of the Companies' Creditors Arrangement Act. The Canadian Court appointed FTI Consulting Canada Inc. as information officer. TK Holdings, as the foreign representative, is represented by McCarthy Tetrault LLP. The U.S. Trustee has appointed an Official Committee of Unsecured Trade Creditors and a separate Official Committee of Tort Claimants in the Chapter 11 cases. The Official Committee of Unsecured Creditors has selected Christopher M. Samis, Esq., L. Katherine Good, Esq., and Kevin F. Shaw, Esq., at Whiteford, Taylor & Preston LLC, in Wilmington, Delaware; Dennis F. Dunne, Esq., Abhilash M. Raval, Esq., and Tyson Lomazow, Esq., at Milbank Tweed Hadley & McCloy LLP, in New York; and Andrew M. Leblanc, Esq., at Milbank, Tweed, Hadley & McCloy LLP, in Washington, D.C., as its bankruptcy counsel. The Committee retained Epiq Bankruptcy Solutions, LLC, as information agent, Zolfo Cooper, LLC, as financial advisor, and Moelis & Company, LLC, as investment banker. The committee representing TK Holdings Inc.'s tort claimants retained Pachulski Stang Ziehl & Jones LLP as its legal counsel; Alvarez & Marshal North America, LLC as financial advisor; Gilbert LLP as insurance counsel; and Sakura Kyodo Law Offices as special counsel. Roger Frankel, the legal representative for future personal injury claimants, has retained Ashby & Geddes PA and Frankel Wyron LLP as his counsel. Chapter 15 Cases Takata Corporation ("TKJP") and affiliates Takata Kyushu Corporation and Takata Services Corporation commenced Chapter 15 cases (Bankr. D. Del. Case Nos. 17-11713 to 17-11715) on Aug. 9, 2017, to seek U.S. recognition of the civil rehabilitation proceedings in Japan. The Hon. Brendan Linehan Shannon oversees the Chapter 15 cases. Young, Conaway, Stargatt & Taylor, LLP, serves as Takata's counsel in the Chapter 15 cases. TK HOLDINGS: Creditors' Panel Hires Zolfo as Financial Advisor -------------------------------------------------------------- The Official Committee of Unsecured Creditors of TK Holdings Inc., et al., seeks authorization from the U.S. Bankruptcy Court for the District of Delaware to retain Zolfo Cooper, LLC, as financial advisor to the Committee. The Committee requires Zolfo Cooper to: (a) monitor the Debtors' cash flows and operating performance. Specifically, the Committee needs the firm to: (i) compare actual financial and operating results to certain filings; (ii) evaluate the adequacy of financial and operating controls; (iii) track the status of the Debtors' progress relative to developing and implementing programs such as preparation of restructuring and winddown plans, identifying and disposing of non-productive assets, and other such activities; and (iv) prepare periodic presentations to the Committee, and summarize findings and observations resulting from the foregoing monitoring activities; (b) advise the Committee regarding any sale of the Debtors' businesses or assets, including analysis of value allocation and intercompany claims among Debtor and non-Debtor entities; (c) analyze and comment on operating and cash flow projections, restructuring and winddown plans, the global accommodation agreement, operating results, financial statements, other documents and information provided by the Debtors or the Debtors' professionals, and other information and data pursuant to the Committee's requests; (d) advise the Committee concerning interfacing with the Debtors, other constituencies and their respective professionals; (e) prepare for and attend meetings of the Committee and other parties in interest; (f) analyze claims and perform investigations of potential preferential transfers, fraudulent conveyances, related-party transactions and such other transactions, each as may be requested by the Committee; (g) analyze and advise the Committee regarding any proposed plan of reorganization or liquidation, disclosure statement, and business plan, including the related assumptions and rationale; (h) prepare an expert report and provide testimony at Court hearings, as requested by the Committee; and (i) provide such other services as may be requested by the Committee. Zolfo Cooper will be paid at these hourly rates: Managing Directors $850-$1,035 Professional Staff $305-$850 Support Personnel $60-$290 Zolfo Cooper will also be reimbursed for reasonable out-of-pocket expenses incurred. David MacGreevey, managing director of Zolfo Cooper, LLC, assured the Court that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and (a) is not creditors, equity security holders or insiders of the Debtors; (b) has not been, within two years before the date of the filing of the Debtors' chapter 11 petition, directors, officers or employees of the Debtors; and (c) does not have an interest materially adverse to the interest of the estate or of any class of creditors or equity security holders, by reason of any direct or indirect relationship to, connection with, or interest in, the Debtors, or for any other reason. Zolfo Cooper can be reached at: David MacGreevey Zolfo Cooper, LLC 5 Becker Farm Road, 4th Floor Roseland, NJ 07068 Tel: (973) 618-5000 Fax: (973) 618-5000 About TK Holdings Inc. Japan-based Takata Corporation (TYO:7312) -- http://www.takata.com/en/-- develops, manufactures and sells safety products for automobiles. The Company offers seatbelts, airbags, steering wheels, child seats and trim parts. Headquartered in Tokyo, Japan, Takata operates 56 plants in 20 countries with approximately 46,000 global employees worldwide. The Company has subsidiaries located in Japan, the United States, Brazil, Germany, Thailand, Philippines, Romania, Singapore, Korea, China and other countries. Takata Corp. filed for bankruptcy protection in Tokyo and the U.S., amid recall costs and lawsuits over its defective airbags. Takata and its Japanese subsidiaries commenced proceedings under the Civil Rehabilitation Act in Japan in the Tokyo District Court on June 25, 2017. Takata's main U.S. subsidiary TK Holdings Inc. and 11 of its U.S. and Mexican affiliates each filed voluntary petitions under Chapter11 of the U.S. Bankruptcy Code (Bankr. D. Del. Lead Case No. 17-11375) on June 25, 2017. Together with the bankruptcy filings, Takata announced it has reached a deal to sell all its global assets and operations to Key Safety Systems (KSS) for US$1.588 billion. Nagashima Ohno & Tsunematsu is Takata's counsel in the Japanese proceedings. Weil, Gotshal & Manges LLP and Richards, Layton & Finger, P.A., are serving as counsel in the U.S. cases. PricewaterhouseCoopers is serving as financial advisor, and Lazard is serving as investment banker to Takata. Ernst & Young LLP is tax advisor. Prime Clerk is the claims and noticing agent. Skadden, Arps, Slate, Meagher & Flom LLP is serving as legal counsel, KPMG is serving as financial advisor, Jefferies LLC is acting as lead financial advisor. UBS Investment Bank also provides financial advice to KSS. On June 28, 2017, TK Holdings, as the foreign representative of the Chapter 11 Debtors, obtained an order of the Ontario Superior Court of Justice (Commercial List) granting, among other things, a stay of proceedings against the Chapter 11 Debtors pursuant to Part IV of the Companies' Creditors Arrangement Act. The Canadian Court appointed FTI Consulting Canada Inc. as information officer. TK Holdings, as the foreign representative, is represented by McCarthy Tetrault LLP. The U.S. Trustee has appointed an Official Committee of Unsecured Trade Creditors and a separate Official Committee of Tort Claimants in the Chapter 11 cases. The Official Committee of Unsecured Creditors has selected Christopher M. Samis, Esq., L. Katherine Good, Esq., and Kevin F. Shaw, Esq., at Whiteford, Taylor & Preston LLC, in Wilmington, Delaware; Dennis F. Dunne, Esq., Abhilash M. Raval, Esq., and Tyson Lomazow, Esq., at Milbank Tweed Hadley & McCloy LLP, in New York; and Andrew M. Leblanc, Esq., at Milbank, Tweed, Hadley & McCloy LLP, in Washington, D.C., as its bankruptcy counsel. The Committee retained Epiq Bankruptcy Solutions, LLC, as information agent, Zolfo Cooper, LLC, as financial advisor, and Moelis & Company, LLC, as investment banker. The committee representing TK Holdings Inc.'s tort claimants retained Pachulski Stang Ziehl & Jones LLP as its legal counsel; Alvarez & Marshal North America, LLC as financial advisor; Gilbert LLP as insurance counsel; and Sakura Kyodo Law Offices as special counsel. Roger Frankel, the legal representative for future personal injury claimants, has retained Ashby & Geddes PA and Frankel Wyron LLP as his counsel. Chapter 15 Cases Takata Corporation ("TKJP") and affiliates Takata Kyushu Corporation and Takata Services Corporation commenced Chapter 15 cases (Bankr. D. Del. Case Nos. 17-11713 to 17-11715) on Aug. 9, 2017, to seek U.S. recognition of the civil rehabilitation proceedings in Japan. The Hon. Brendan Linehan Shannon oversees the Chapter 15 cases. Young, Conaway, Stargatt & Taylor, LLP, serves as Takata's counsel in the Chapter 15 cases. TK HOLDINGS: Creditors' Panel Taps Moelis as Investment Banker -------------------------------------------------------------- The Official Committee of Unsecured Creditors of TK Holdings Inc., et al., seeks authorization from the U.S. Bankruptcy Court for the District of Delaware to retain Moelis & Company, LLC, as investment banker to the Committee. The Committee requires Moelis & Company to: (a) assist the Committee in reviewing and analyzing the Debtors' results of operations, financial condition and business plan; (b) assist the Committee in reviewing and analyzing a potential Restructuring, and assist the Committee in negotiating a Restructuring; (c) assist the Committee in analyzing the capital structure of the Debtors; (d) advise and assist the Committee in analyzing the terms of any securities the Debtors might offer in connection with a Restructuring; (e) assist the Committee in reviewing any alternatives to a Restructuring proposed by the Debtors, its creditors, or any other parties in interest; (f) participate in meetings with the Committee and meet with the Debtors' management, the Debtors' board and other creditor groups, equity holders or other parties in interest, in each case who are institutional parties or represented by an advisor, as the Committee's investment banker, to discuss any Restructuring; (g) participate in hearings before the Bankruptcy Court and provide testimony on matters mutually agreed upon in good faith; and (h) provide such other investment banking services in connection with the Chapter 11 Cases as Moelis & Company and the Committee may mutually agree upon. Moelis & Company will be paid as follows: i. Monthly Fee. During the term of the Engagement Letter, a fee of $175,000 per month (the "Monthly Fee"), payable in advance of each month. The Debtors will pay the first Monthly Fee immediately upon execution of the Engagement Letter, and all subsequent Monthly Fees before each monthly anniversary of the date of the Engagement Letter. Whether or not a Restructuring occurs, Moelis & Company shall earn and be paid the Monthly Fee every month during the term of the Engagement Letter. ii. Restructuring Fee. At the closing of a Restructuring, a fee (the "Restructuring Fee") of $3,500,000. Moelis & Company will also be reimbursed for reasonable out-of-pocket expenses incurred. Adam Keil, partner of Moelis & Company LLC, assured the Court that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and (a) is not creditors, equity security holders or insiders of the Debtors; (b) has not been, within two years before the date of the filing of the Debtors' chapter 11 petition, directors, officers or employees of the Debtors; and (c) does not have an interest materially adverse to the interest of the estate or of any class of creditors or equity security holders, by reason of any direct or indirect relationship to, connection with, or interest in, the Debtors, or for any other reason. Moelis & Company can be reached at: Adam Keil MOELIS & COMPANY LLC 399 Park Avenue New York, NY 10022 Tel: (212) 883-3800 Fax: (212) 880-4260 About TK Holdings Inc. Japan-based Takata Corporation (TYO:7312) -- http://www.takata.com/en/-- develops, manufactures and sells safety products for automobiles. The Company offers seatbelts, airbags, steering wheels, child seats and trim parts. Headquartered in Tokyo, Japan, Takata operates 56 plants in 20 countries with approximately 46,000 global employees worldwide. The Company has subsidiaries located in Japan, the United States, Brazil, Germany, Thailand, Philippines, Romania, Singapore, Korea, China and other countries. Takata Corp. filed for bankruptcy protection in Tokyo and the U.S., amid recall costs and lawsuits over its defective airbags. Takata and its Japanese subsidiaries commenced proceedings under the Civil Rehabilitation Act in Japan in the Tokyo District Court on June 25, 2017. Takata's main U.S. subsidiary TK Holdings Inc. and 11 of its U.S. and Mexican affiliates each filed voluntary petitions under Chapter11 of the U.S. Bankruptcy Code (Bankr. D. Del. Lead Case No. 17-11375) on June 25, 2017. Together with the bankruptcy filings, Takata announced it has reached a deal to sell all its global assets and operations to Key Safety Systems (KSS) for US$1.588 billion. Nagashima Ohno & Tsunematsu is Takata's counsel in the Japanese proceedings. Weil, Gotshal & Manges LLP and Richards, Layton & Finger, P.A., are serving as counsel in the U.S. cases. PricewaterhouseCoopers is serving as financial advisor, and Lazard is serving as investment banker to Takata. Ernst & Young LLP is tax advisor. Prime Clerk is the claims and noticing agent. Skadden, Arps, Slate, Meagher & Flom LLP is serving as legal counsel, KPMG is serving as financial advisor, Jefferies LLC is acting as lead financial advisor. UBS Investment Bank also provides financial advice to KSS. On June 28, 2017, TK Holdings, as the foreign representative of the Chapter 11 Debtors, obtained an order of the Ontario Superior Court of Justice (Commercial List) granting, among other things, a stay of proceedings against the Chapter 11 Debtors pursuant to Part IV of the Companies' Creditors Arrangement Act. The Canadian Court appointed FTI Consulting Canada Inc. as information officer. TK Holdings, as the foreign representative, is represented by McCarthy Tetrault LLP. The U.S. Trustee has appointed an Official Committee of Unsecured Trade Creditors and a separate Official Committee of Tort Claimants in the Chapter 11 cases. The Official Committee of Unsecured Creditors has selected Christopher M. Samis, Esq., L. Katherine Good, Esq., and Kevin F. Shaw, Esq., at Whiteford, Taylor & Preston LLC, in Wilmington, Delaware; Dennis F. Dunne, Esq., Abhilash M. Raval, Esq., and Tyson Lomazow, Esq., at Milbank Tweed Hadley & McCloy LLP, in New York; and Andrew M. Leblanc, Esq., at Milbank, Tweed, Hadley & McCloy LLP, in Washington, D.C., as its bankruptcy counsel. The Committee retained Epiq Bankruptcy Solutions, LLC, as information agent, Zolfo Cooper, LLC, as financial advisor, and Moelis & Company, LLC, as investment banker. The committee representing TK Holdings Inc.'s tort claimants retained Pachulski Stang Ziehl & Jones LLP as its legal counsel; Alvarez & Marshal North America, LLC as financial advisor; Gilbert LLP as insurance counsel; and Sakura Kyodo Law Offices as special counsel. Roger Frankel, the legal representative for future personal injury claimants, has retained Ashby & Geddes PA and Frankel Wyron LLP as his counsel. Chapter 15 Cases Takata Corporation ("TKJP") and affiliates Takata Kyushu Corporation and Takata Services Corporation commenced Chapter 15 cases (Bankr. D. Del. Case Nos. 17-11713 to 17-11715) on Aug. 9, 2017, to seek U.S. recognition of the civil rehabilitation proceedings in Japan. The Hon. Brendan Linehan Shannon oversees the Chapter 15 cases. Young, Conaway, Stargatt & Taylor, LLP, serves as Takata's counsel in the Chapter 15 cases. TLA HOLDING: Sept. 6 Plan Confirmation and Disclosures Hearing -------------------------------------------------------------- Judge Tony M. Davis of the U.S. Bankruptcy Court for the Western District of Texas conditionally approved TLA Holding, LLC's amended disclosure statement, dated August 17, 2017, for its plan of reorganization, dated July 24, 2017. Sept. 1, 2017, at 5:00 p.m. (CT) is fixed as the last day for filing and serving objections to final approval of the Disclosure Statement. Sept. 1, 2017, at 5:00 p.m. (CT) is also fixed as the last day for submitting ballots for acceptance or rejection of the Plan. Sept. 1, 2017, at 5:00 p.m. (CT) is also fixed as the last day for filing and serving written objections to confirmation of the Plan. Sept. 6, 2017, at 1:30 p.m. (CT), at the U.S. Bankruptcy Court, Courtroom No. 1, 903 San Jacinto Blvd., Austin, Texas, is fixed as the time and place of the hearing on final approval of the Disclosure Statement combined with the hearing on confirmation of the Plan. About TLA Holding TLA Holding LLC filed a voluntary petition under Chapter 11 of the Bankruptcy Code (Bankr. W.D. Tex. Case No. 16-11448) on Dec. 6, 2016. At the time of the filing, the Debtor estimated assets and liabilities of less than $1 million. The Debtor is represented by Frank B. Lyon, Esq., at the Law Offices of Frank B. Lyon, and Catherine Lenox, Esq. TOD LAS VEGAS: Case Summary & 2 Unsecured Creditors --------------------------------------------------- Debtor: Tod Las Vegas LLC 700 North Main Las Vegas, NV 89101 Type of Business: Tod Las Vegas LLC is a small organization operating under the hospitality industry. It listed its business as a single asset real estate (as defined in 11 U.S.C. Section 101(51B)) and owns in fee simple interest a real property valued at $4 million. Chapter 11 Petition Date: August 24, 2017 Case No.: 17-14614 Court: United States Bankruptcy Court District of Nevada (Las Vegas) Debtor's Counsel: Spencer M. Judd, Esq. SPENCER M. JUDD, ESQ. 9420 Mountainair Ave. Las Vegas, NV 89134 Tel: (702) 606-4357 Fax: (702) 360-4769 E-mail: spencer@SJuddLaw.com Total Assets: $4 million Total Liabilities: $3.05 million The Debtor's list of two unsecured creditors is available for free at http://bankrupt.com/misc/nvb17-14614.pdf TONGJI HEALTHCARE: Incurs $539,000 Net Loss in Second Quarter ------------------------------------------------------------- Tongji Healthcare Group, Inc., filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $539,219 on $319,303 of total operating revenue for the three months ended June 30, 2017, compared to a net loss of $27,472 on $559,260 of total operating revenue for the three months ended June 30, 2016. For the six months ended June 30, 2017, the Company reported a net loss of $702,408 on $657,699 of total operating revenue compared to a net loss of $152,777 on $1.06 million of total operating revenue for the same period during the prior year. As of June 30, 2017, the Company had $7.45 million in total assets, $14.47 million in total liabilities and a total stockholders' deficit of $7.02 million. "We generally finance our operations through our operating profits and borrowings from related parties. As of the date of this report, we have not experienced any difficulty in raising funds from related parties, and we have not experienced any liquidity problems in settling our payables in our ordinary course of business. We believe that we have adequate funds and capital with respect to conducting its business over the next twelve months." Net cash used in operating activities primarily consists of net loss, as adjusted by depreciation, stock option, and changes in operating assets and liabilities such as accounts receivable, medical supplies, capital lease deposits, prepaid expense and other current assets, accounts payables and accrued liabilities , and other payables. Net cash used in operating activities was $112,105 for the six months ended June 30, 2017, an increase of $88,890 or 383% as compared with the net cash used in operating activities of $23,215 for the same period in 2016. The decrease in net cash provided in operating activities was primarily due to the $702,408 net operating loss. Net cash used in investing activities was $0 for the six months ended June 30, 2017, a decrease of $104,148 or 100%, as compared with the net cash used in investing activities of $104,148 for the same period in 2016. The decrease in net cash used in investing activities was primarily due to no fixed assets being added compared to the same period of 2016. Net cash provided by financing activities primarily consists of proceeds from related party loans. Net cash provided by financing activities was $100,997 for the six months ended June 30, 2017, a decrease of $53,319 or 35%, as compared with net cash provided by financing activities of $154,316 for the same period in 2016. The decrease was primarily attributable to less money being needed to be financed from our related party. The Company's working capital was negative $7,578,047 as of June 30, 2017, as compared with negative $6,745,663 as of Dec. 31, 2016, a decrease of $832,384, which is primarily attributable to the increase in related party loans of approximately $352,804, the decrease of other current receivables of $839,393, and the decrease in other payables of $541,706. A full-text copy of the Form 10-Q is available for free at: https://is.gd/9CnMmf About Tongji Healthcare Based in Nanning, Guangxi, the People's Republic of China, Tongji Healthcare Group, Inc., a Nevada corporation, operates Nanning Tongji Hospital, a general hospital with 105 licensed beds. Tongji Healthcare reported a net loss of $3.64 million on $1.93 million of total operating revenue for the year ended Dec. 31, 2016, compared to a net loss of $588,557 on $2.35 million of total operating revenue for the year ended Dec. 31, 2015. Anton & Chia, LLP, in Newport Beach, California, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2016, citing that the Company has negative working capital of $6,745,663, an accumulated deficit of $7,206,416, and shareholders' deficit of $6,162,728 as of Dec. 31, 2016. The Company's ability to continue as a going concern ultimately is dependent on the management's ability to obtain equity or debt financing, attain further operating efficiencies, and achieve profitable operations. TOUCHSTONE HOME: Law Firm Authorized to Continue Arbitration ------------------------------------------------------------ Santangelo Law Offices, P.C., filed a "Motion for Relief from Stay for Cause and to Enforce Arbitration Agreement Pursuant to Federal Arbitration Act" in the Chapter 11 case of Touchstone Home Health LLC. The Law Firm sought authorization to complete the arbitral process and liquidate its claim. The Debtor filed its "Response to Motion for Relief from Stay and to Enforce Arbitration Agreement filed by Santangelo Law Offices, P.C." The Debtor opposed the Motion and advocated that the Court should decide the legal fees dispute in the context of the bankruptcy claims allowance and disallowance process under Section 502. Judge Thomas B. McNamara of the U.S. Bankruptcy Court for the District of Colorado granted the Law Firm's motion and authorized it to continue the Arbitration for purposes of liquidating the Claim. Years before it filed for bankruptcy, the Debtor engaged Santangelo Law Offices to protect the Debtor's intellectual property rights. The parties entered into a contract spelling out the terms of the attorney-client relationship, including the payment of fees and costs for legal services. Further, the parties agreed that any disputes that might arise between the Debtor and the Law Firm would be resolved by binding arbitration. Two years later, the Debtor became disenchanted with the legal services provided by the Law Firm and the fees charged. The Debtor fired the Law Firm and hired new attorneys. After the Debtor terminated the Law Firm in early 2015, the Law Firm continued to assert that it was owed substantial attorneys' fees, costs, and interest for its work. The Debtor contested any such obligation. As a result of the impasse, and shortly after the settlement between the Debtor and THP, the Law Firm initiated an arbitration proceeding under the Agreement by sending a "Demand for Arbitration," dated July 16, 2015, wherein it demanded "approximately $226,400" for legal fees, costs, and interest. The arbitration demand was not well-received. The Debtor responded by filing an "Answer and Counterclaim," through which the Debtor denied any liability and also claimed that the Law Firm engaged in "legal malpractice." Upon careful consideration of the arguments presented, the Court finds that the Debtor has not met its burden to establish an inherent conflict between arbitration of the Law Firm's Claim and the Bankruptcy Code. Prior to bankruptcy, the Law Firm and the Debtor were engaged in a state-law fee dispute based upon the Agreement. The Agreement contains a broad Arbitration Clause. It provides a method for arbitrator selection, a location for hearing, confidentiality, general procedural rules, limitations on the scope of discovery, and a commitment to prompt resolution. The Agreement evidences an informal process designed to be fair and expeditious. There is no question but that the underlying fee dispute is arbitrable under the Agreement. The Debtor has shown no inherent structural conflict between claims liquidation arbitration and the Bankruptcy Code. Instead, the Debtor focuses on time and expense (and the resulting impact on reorganization). While the Court accepts the Debtor's proffer that the Arbitration process has been expensive before the bankruptcy, there is no competent evidence to suggest that completion of the Arbitration will take longer or be more expensive than resolution by this Court. The Debtor offers only conjecture rather than common sense, for it stands to reason that completion of the Arbitration likely could be concluded more quickly, efficiently, and cheaply than starting from scratch again in this Court. Final resolution also would be expedited through arbitration since appellate rights are quite limited. If this Court adjudicated the Law Firm's Claim and the losing side exercised all available appeals, the final result could take years. The Court determines that prompt and conclusive arbitration of the Claim likely would facilitate the bankruptcy process, including reorganization, rather than impede it. The Court, therefore, orders that the motion is granted. The Law Firm is authorized to continue the Arbitration for purposes of liquidating the Claim. The parties are compelled to arbitrate. Promptly after completion of the Arbitration, the parties shall provide the Court with notice of the final arbitration award for purposes of allowance or disallowance of the Claim. The Law Firm is not authorized to execute on any final arbitration award against the Debtor or the Debtor's Estate. A full-text copy of Judge McNamara's Memorandum Opinion and Order dated August 21, 2017, is available at: http://bankrupt.com/misc/cob17-11134-68.pdf About Touchstone Home Health Based in Greeley, Colorado, Touchstone Home Health LLC provides in-home skilled patient health care services for patients located primarily in Weld and Larimer County, Colorado. The Debtor sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D. Colo. Case No. 17-11134) on February 16, 2017. At the time of the filing, the Debtor estimated assets and liabilities of less than $50,000. The case is assigned to Judge Thomas B. McNamara. The Debtor is represented by Robert J. Shilliday III, Esq., at Vorndran Shilliday, P.C. TRACON PHARMA: Needs More Funding to Continue as Going Concern -------------------------------------------------------------- TRACON Pharmaceuticals, Inc., filed its quarterly report on Form 10-Q, disclosing a net loss of $6.57 million on $631,00 of revenue for the three months ended June 30, 2017, compared with a net loss of $8.30 million on $807 of revenue for the same period in 2016. For the six months ended June 30, 2017, the Company listed a net loss of $13.71 million on $1.26 million of revenue, compared to a net loss of $14.82 million on $2.02 million of revenue for the same period in the prior year. The Company's balance sheet at June 30, 2017, showed $32.89 million in total assets, $15.59 million in total liabilities, and a stockholders' equity of $17.29 million. At June 30, 2017, the Company had cash, cash equivalents and short-term investments totaling $32.0 million. The Company believes that its existing cash, cash equivalents and short-term investments will be sufficient to meet its anticipated cash requirements through mid-2018. The Company will need additional funding to complete the development and commercialization of its product candidates, specifically its lead product candidate, TRC105, including to complete the Company's ongoing Phase 3 trial in angiosarcoma. In addition, the Company may evaluate in-licensing and acquisition opportunities to gain access to new product candidates that fit with its strategy. Any such transaction will likely increase the Company's future funding requirements. The Company may not be successful in raising sufficient additional capital to continue to operate its business. These uncertainties raise substantial doubt about its ability to continue as a going concern for a period of one year following the date that the accompanying financial statements were issued. A copy of the Form 10-Q is available at: https://is.gd/Krdg38 Based in San Diego Calif., TRACON Pharmaceuticals, Inc., is a biopharmaceutical company focused on the development and commercialization of novel targeted therapeutics for cancer, wet age-related macular degeneration, or wet AMD, and fibrotic diseases. The Company's research focuses on antibodies that bind to the endoglin receptor, which is essential to angiogenesis (the process of new blood vessel formation) and a contributor to fibrosis (tissue scarring). The Company's lead product candidate, TRC105, is an endoglin antibody that is being developed for the treatment of multiple solid tumor types in combination with inhibitors of the vascular endothelial growth factor (VEGF) pathway. TRAMMELL FAMILY LAKE: Proposed Sale Denied Without Prejudice ------------------------------------------------------------ Judge William R. Sawyer of the U.S. Bankruptcy Court for the Middle District of Alabama denied without prejudice Trammell Family Lake Martin Properties, LLC's and Trammell Family Orange Beach Properties, LLC's sale free and clear of liens. About Trammell Family Lake Martin Trammell Family Lake Martin, LLC, sought protection under Chapter 11 of the Bankruptcy Code (Bankr. M.D. Ala. Case No. 17-30260) on Jan. 30, 2017. The petition was signed by Amy Brown, manager. The case is assigned to Judge William R. Sawyer. At the time of the filing, the Debtor estimated assets of $1 million to $10 million and liabilities of less than $500,000. The Debtor is represented by Lee R. Benton, Esq., and Samuel C. Stephens, Esq., at Benton & Centeno, LLP. TRONOX LTD: S&P Alters Outlook to Stable & Affirms 'B' CCR ---------------------------------------------------------- S&P Global Ratings affirmed its 'B' corporate credit rating on Tronox Ltd. and revised the rating outlook to stable from negative. S&P said, "At the same time, we affirmed our 'BB-' issue-level ratings on the company's senior secured debt. The recovery rating remains '1', reflecting our expectation of very high (90%-100%; rounded estimate: 95%) recovery in the event of default. We also affirmed our 'B-' issue-level rating on the company's senior unsecured debt. The recovery rating on this debt remains '5', reflecting our expectation of modest (10%-30%; rounded estimate: 10%) recovery in the event of a default. "The outlook revision reflects the improvement in titanium dioxide (TiO2) prices in 2017, which we expect will continue into the next year and our expectation that the cash portion of the company's $1.673 billion acquisition of TiO2 producer Cristal will require only modest additional debt. We anticipate that EBITDA gains from the acquisition will more than offset the increase in debt and result in an improvement in debt leverage. We expect Tronox will fund a major part of the $1.673 billion cash portion of its Cristal acquisition with the $1.325 billion sale proceeds from its Alkali business and use debt to fund the balance and fees. We have also evaluated the impact of the Alkali sale and additional Cristal assets, resulting in a revision of the company's business risk profile to weak from fair. Our projections indicate that Tronox will keep operating at high rates and that TiO2 prices will continue to rise, albeit modestly, when compared with the price increases in 2016 and 2017. "The stable outlook reflects the improved pricing environment for TiO2. We also expect Tronox to fund the acquisition of Cristal with the proceeds from the sale of Alkali and the difference with additional debt. Our outlook reflects the expectation that Tronox will close the Cristal acquisition in the first quarter of 2018 and maintain debt/EBITDA between 5x and 7x for the 12 months following transaction close. "We could lower ratings in the next 12 months if we anticipate that the key ratio of debt/EBITDA rises above 7.5x on a weighted-average basis pro forma for the acquisition or if Tronox has issues operating or integrating Cristal assets. We believe ratios could weaken to such levels if EBITDA margins unexpectedly drop by more than 500 basis points (bps) from our base case in 2018. This increased debt leverage could be the result of integration or operating challenges with Cristal or an unexpected decline in TiO2 prices to 2016 levels. "We could raise ratings over the next 12 months if debt/EBITDA improved significantly to levels below 4x that we believe is sustainable. We believe ratios at these levels generate a comfortable level of earnings to account for potential volatility and we could consider a one-notch upgrade. An improvement in EBITDA margins and revenue by 1,000 bps or higher in 2018 and beyond could result in this key ratio improving the levels below 4x. Such a scenario could arise from a stronger improvement in TiO2 pricing on higher demand than we have factored in our base case. Additionally, such a scenario could occur if Tronox is able to improve Cristal operations faster than anticipated resulting in increased production and reduced costs." TROY'S DELI: Hires Maureen A. Ryan as Accountant ------------------------------------------------ Troy's Deli & Pizzeria, Inc., seeks authority from the U.S. Bankruptcy Court for the Southern District of New York to employ Maureen A. Ryan, CPA, as accountant to the Debtor. Troy's Deli requires Maureen A. Ryan to: a. review and analyze proposed transactions for which the Debtor may seek court approval; b. review, analyze and make recommendations regarding any proposed dispositions of assets; c. provide financial analysis of any business plan, the Plan of Reorganization, Liquidation Analysis and accompanying Disclosure Statement, including assistance in negotiations; d. assist in the analysis of historical and projected financial statements; e. review and analyze the tax impact of proposed transactions or plans of reorganization and other tax services as may be required; f. assist the Debtor in the analysis of claims; g. file all appropriate and necessary local, state and federal tax returns; and h. assist in any other accounting matter as may be appropriate in the bankruptcy case. Maureen A. Ryan will be paid at the hourly rate of $100. The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. Maureen A. Ryan, CPA, 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. Maureen A. Ryan can be reached at: Maureen A. Ryan 38 Howland Avenue Kingston, NY 12401 Tel: (845) 338-2040 About Troy's Deli & Pizzeria, Inc. Troy's Deli & Pizzeria, Inc, based in Kerhonkson, New York, filed a Chapter 11 petition (Bankr. S.D.N.Y. Case No. 17-36010) on June 12, 2017. Michelle L Trier, Esq., at Genova & Malin, serves as bankruptcy counsel. The Debtor listed under $1 million in both assets and liabilities. UNITED CHARTER: Hiring Ten-X to Auction Stockton Property --------------------------------------------------------- United Charter, LLC, asks the U.S. Bankruptcy Court for the Eastern District of California to authorize its sale of its fee simple interest in a 177,692 sq. ft. industrial complex consisting of 18 contiguous parcels totaling 15.34 acres, located in Stockton, California, by online live auction. A hearing on the Motion is set for Aug. 31, 2017 at 10:30 a.m. Among the assets of the estate is the Subject Property, more particularly described as follows: 1904, 1908, 1912, 1916, 1920, 1928, and 1936 Weber Avenue; 1881 E. Market Street; 1617, 1555, 1531, and 1523 E. Main Street. The Debtor has scheduled the value of the Subject Property as approximately $7.855 million. Its schedules identify total secured and unsecured claims against the estate of less than $5 million. As of Aug. 3, 2017, the last day for filing proofs of claim in the case, the total amount of all claims scheduled by the Debtor, including the higher amounts of all timely filed proofs of claim, was less than $5.3 million. The Debtor desires to sell the Subject Property using an auction process. It has solicited auction proposals from a number of real estate brokers and companies and believes that Ten-X, LLC is well qualified to market the Subject Property and conduct such an auction. Ten-X holds real estate brokerage licenses nationwide and operates and manages one of the leading online real estate auction platforms in the country. The Auctioneer has agreed to represent only the Debtor, as its broker in any sale arising from the proposed auction. The substantive terms of the Ten-X Marketing Agreement are: a. Although the Agreement contemplates up to a 150 day marketing period followed by a "live bid" auction using the Ten-X auction platform, based upon the interest in the Subject Property received to date, the auction is presently scheduled to commence on Sept. 11 and run through Sept. 13, 2017. The actual date will depend upon circumstances and the advice of the Debtor's counsel and broker. b. The Starting Bid is presently $2,500,000. This is not a Reserve Price. The Debtor is only obligated to accept the highest bid once a bid meets or exceeds the stated "Minimum Price" of $7,800,000. It may, in its sole and absolute discretion, accept a lower price, subject to approval of the Court, so long as that price is sufficient to pay the monetary demands of all creditors in full, including all costs of sale and administrative claims against the estate. c. Any successful bidder will be required to submit its offer on Ten-X's standard Purchase and Sale Agreement with Joint Closing Instructions. d. Escrow will close within 30 days of execution of the PSA (or 60 days if the buyer finances the purchase). e. Ten-X to receive a Transaction Fee at closing in the amount of 5% of the buyer's offer price for any purchase and sale agreement for the Subject Property entered into by the Debtor during the Marketing Period, with such Transaction Fee obligation continuing for 150 day Tail Period following the end of the Marketing Period. f. The buyer's broker to receive 1% of the buyer's offer price (exclusive of any Transaction Fee) from the Listing Broker, Mark Bello. The Debtor is negotiating the terms of Bello's employment and anticipates that prior to the hearing on the Motion; the Debtor will be submitting a separate Application to employ Bello as the Listing Broker, subject to the terms of the Ten-X agreements submitted with the Motion. g. Ten-X is obligated to pay a buyer's broker commission of 1% to any broker representing a successful bidder. The Debtor asks that the Court approves the employment of Ten-X on the terms and conditions set forth in Marketing Agreement for an online live auction process and that the Court approves the terms of sale described in the PSA to any successful bidder whose offer matches or exceeds the Minimum Price of $7,800,000. In the event that the Debtor lowers its reserve price during the auction and accepts a bid lower than the Minimum Price, the Debtor asks that the Court schedules a prompt hearing to approve such a sale on shortened time following acceptance of such a bid. As part of its request, the Debtor asks that the Court waive the 14-day stay requirement of Fed. Rule of Bankr. Proc. 6004(h) so that any such sale may proceed without delay. A copy of the Marketing Agreement and the PSA attached to the Motion is available for free at: http://bankrupt.com/misc/United_Charter_44_Sales.pdf About United Charter United Charter LLC, owner of certain properties in Stockton, California, filed a Chapter 11 petition (Bankr. E.D. Cal. Case No. 17-22347) on April 7, 2017. The petition was signed by Raymond Zhang, managing member. The case is assigned to Judge Ronald H. Sargis. The Debtor is represented by Jeffrey J. Goodrich, Esq. at Goodrich & Associates. The Debtor estimated assets and liabilities ranging from $1 million to $10 million. USIC HOLDINGS: Partners Group Deal No Impact on Moody's B3 CFR --------------------------------------------------------------- Moody's Investors Service said that the acquisition of USIC Holdings, Inc. by financial sponsor Partners Group has no immediate impact on the company's ratings, including its B3 Corporate Family Rating and B3-PD Probability of Default Rating, and its B2 first lien and Caa2 second lien bank debt ratings. Moreover, the ratings outlook remains stable, for now. However, the rating agency assesses the development as credit negative in all likelihood, based on its expectation that the new financial sponsor will look to lever the company's balance sheet more heavily to fund the transaction and to support a faster growth through acquisitions. Of particular note according to Moody's, USIC's existing portable capital structure precludes the more typical wholesale refinancing of existing debt upon a change of control event (subject to meeting certain criteria). This allows the company to utilize incremental debt should it need to, whether for future prospective acquisition or to aid in completion of the pending buyout. Moody's said it would re-evaluate the company's ratings and the anticipated credit impact once full details regarding the buyout and new capital structure become available. Headquartered in Indianapolis, Indiana, USIC Holdings, Inc. is a leading provider of outsourced infrastructure locating and marking services to telephone, electric, natural gas, cable, fiber optic and water utilities in the United States. The company operates in 39 states in the U.S. and one province in Canada. Since July 2013, USIC has been owned by the funds advised and/or managed by Leonard Green & Partners, L.P. In 2016, the company performed about 71 million locates, and in the twelve-month period ended June 30, 2017 it generated approximately $830 million in revenues. UW OSHKOSH FOUNDATION: Taps Steinhilber Swanson as Legal Counsel ---------------------------------------------------------------- University of Wisconsin Oshkosh Foundation, Inc. seeks approval from the U.S. Bankruptcy Court for the Eastern District of Wisconsin to hire legal counsel in connection with its Chapter 11 case. The Debtor proposes to employ Steinhilber Swanson LLP to, among other things, analyze claims of creditors; handle case administration tasks; and assist in the preparation of a plan of reorganization. The attorneys and paralegal expected to represent the Debtor and their hourly rates are: Paul Swanson Partner $395 John Menn Associate $275 Nicholas Hahn Associate $215 Heather Saladin Paralegal $150 The hourly rates for other attorneys and paralegals who may work on the case range from $150 to $395. Paul Swanson, Esq., disclosed in a court filing that the firm and its members and associates are "disinterested" as defined in section 101(14) of the Bankruptcy Code. Steinhilber Swanson can be reached through: Paul G. Swanson, Esq. Steinhilber Swanson LLP 107 Church Avenue P.O. Box 617 Oshkosh, WI 54903-0617 Tel: 920-235-6690 Fax: 920-426-5530 Email: pswanson@oshkoshlawyers.com About University of Wisconsin Oshkosh Foundation Inc. Established in 1963, the University of Wisconsin Oshkosh Foundation -- https://www.uwosh.edu/foundation -- was created to promote, receive, invest and disburse gifts to meet the goals and needs of the University of Wisconsin Oshkosh. Its offices are located in the Alumni Welcome and Conference Center along the Fox River. The Debtor is a separate and distinct legal entity from UW Oshkosh and qualifies as a tax-exempt 501(c)(3) organization under the United States Internal Revenue Code. It owns a fee simple interest in the Alumni Welcome & Conference Center located at 625 Pearl Avenue, Oshkosh, valued at $11.8 million. It is also a fee simple owner of a residence located at 1423 Congress Avenue, Oshkosh, with a current value of $375,000. The Debtor sought protection under Chapter 11 of the Bankruptcy Code (Bankr. E.D. Wis. Case No. 17-28077) on August 17, 2017. Timothy C. Mulloy, chairman of the Board, signed the petition. At the time of the filing, the Debtor disclosed $14.84 million in assets and $15.87 million in liabilities. Judge Susan V. Kelley presides over the case. VINCE MYERS: Wants Authorization to Use IRS Cash Collateral ----------------------------------------------------------- Vince Myers Welding & Construction, Inc., asks the U.S. Bankruptcy Court for the Western District of Oklahoma to authorize it to use the cash collateral which is subject to the liens of Internal Revenue Service. The Debtor intends to use the revenue received from operating its business during the pendency of this Chapter 11 proceeding to pay for the operational expenses so that it can operate and ultimately, so that it may successfully emerge from bankruptcy. The Debtor relates that after filing bankruptcy, the Debtor received approval from the IRS to use its cash collateral. However, on Aug. 9, 2017, the IRS sent Debtor a letter revoking its consent to use cash collateral. The Debtor needs to use the cash collateral to operate while in bankruptcy. The Debtor's projected monthly cash flow shows total cash paid out in the aggregate sum of $74,274 for the month of August 2017, $203,826 for the month of October 2017, $202,436 for the month of November 2017, $202,536 for the month of December 2017, and $196,036 for the month of January 2018. As adequate protection to the IRS, the Debtor is prepared to start making monthly payments to the IRS, which payment is equal to what the Debtor will be required to pay post-confirmation. The Debtor estimates the IRS debt at approximately $4,500,000. The Debtor further estimates that the monthly payments due the IRS will be approximately $82,000. Accordingly, the Debtor will start making monthly payments to the IRS of approximately $82,000 for the next 55 months. In addition, based on the Oklahoma Tax Commission's estimated priority debt of $1,200,000, the Debtor estimates the monthly payments to the OTC to be approximately $22,000. The Debtor will start making monthly payments to the OTC of approximately $22,000 for the next 55 months. A full-text copy of the Debtor's Motion, dated Aug. 15, 2017, is available at https://is.gd/JhsvdV A copy of the Debtor's Budget is available at https://is.gd/GnlpaX About Vince Myers Welding Vince Myers Welding & Construction, Inc., based in Cushing, Oklahoma, filed a Chapter 11 petition (Bankr. W.D. Okla. Case No. 17-12267) on June 7, 2017. In its petition, the Debtor estimated $0 to $50,000 in assets and $1 million to $10 million in liabilities. The petition was signed by Bobbie Myers, president. The Hon. Janice D. Loyd presides over the case. Gary D. Hammond, Esq., at Mitchell & Hammond, serves as the Debtor's bankruptcy counsel. WEATHERFORD INTERNATIONAL: Appoints Karl Blanchard as COO --------------------------------------------------------- Weatherford International plc announced the appointment of Karl Blanchard as executive vice president and chief operating officer. In this role, he will oversee all region and product line operations; quality, health, safety, security and environment; sales; engineering, research and development; and supply chain. Mr. Blanchard brings with him valuable insights gained through more than 35 years in the oilfield services sector. Most recently, Mr. Blanchard served as chief operating officer for Seventy Seven Energy, where he oversaw drilling, pressure-pumping and rental tool operations. Previously, he spent more than 30 years at Halliburton Company where he held senior leadership positions including vice president of cementing, vice president of production enhancement and vice president of testing and subsea. "Mr. Blanchard has a long track record of bringing teams together to deliver operational excellence, strong financial performance and disciplined growth," said Mr. Mark A. McCollum, president and chief executive officer. "I have witnessed the effectiveness of his leadership first-hand, and I am very much looking forward to working with him to create a more balanced and integrated organizational structure at Weatherford." Mr. McCollum added, "By aligning several elements of our business under Mr. Blanchard's direction, we will establish greater collaboration, innovation and process discipline across our organization." In connection with his appointment, subject to the approval of the Board of Directors, Mr. Blanchard will receive the following compensation: (1) annual base salary of $700,000; (2) eligibility to participate in the Company's Executive Non-Equity Incentive Compensation Plan, with threshold, target and superior metrics (expressed as a percentage of base salary) set at 50%, 100% and 150%, with a comparative performance matrix multiplier (maxed at 1.333) for 2017, providing a potential maximum bonus, prorated for 2017, of up to 200%; and (3) a long term equity incentive award of $2,800,000, consisting of 75% restricted share units and 25% performance share units with share price increase metrics pursuant to the Company's 2017 plan, vesting in equal installments over a three year period. The Company will enter into a Change in Control Agreement with Mr. Blanchard that has a term of two years, automatically renewing if a change of control has not occurred, unless the Company provides notice of its intent not to renew. Under the terms of the CIC Agreement, if, during the term of the CIC Agreement, Mr. Blanchard's employment is terminated in connection with a change in control, he is entitled to receive: * a lump sum cash payment equal to three times the sum of the highest base salary received in the preceding three years and the annual incentive cash compensation averaged over the preceding three years; * any accrued salary, annual target incentive cash compensation for the year of termination and vacation pay, pro-rated to the date of termination; * continuation for three years of all dental and health benefits, provided he remains responsible for his monthly employee contribution; and * reasonable outplacement services upon request for a period of up to six months beginning with the first full month after termination. Upon a change in control, Mr. Blanchard's equity awards will vest and any applicable forfeiture restrictions will lapse. In addition, the Company and one of its primary subsidiaries will enter into customary officer indemnification agreements (deeds of indemnity) with Mr. Blanchard upon joining the Company. Pursuant to the terms of the indemnification agreements, Mr. Blanchard will be indemnified against any legal action taken against him by his prior employer. About Weatherford Houston, Texas-based Weatherford International plc -- http://www.weatherford.com/-- is one of the largest multinational oilfield service companies providing innovative solutions, technology and services to the oil and gas industry. The Company operates in over 90 countries and has a network of approximately 860 locations, including manufacturing, service, research and development, and training facilities and employs approximately 29,500 people. Weatherford International reported a net loss attributable to the Company of $3.39 billion on $5.74 billion of total revenues for the year ended Dec. 31, 2016, compared to a net loss attributable to the Company of $1.98 billion on $9.43 billion of total revenues for the year ended Dec. 31, 2015. As of June 30, 2017, Weatherford had $12.05 billion in total assets, $10.52 billion in total liabilities and $1.52 billion in total shareholders' equity. * * * In November 2016, Fitch Ratings has downgraded the ratings for Weatherford and its subsidiaries, including the companies' Long-Term Issuer Default Ratings (IDRs) to 'CCC' from 'B+'. In November 2016, S&P Global Ratings lowered its corporate credit rating on Weatherford International to 'B+' from 'BB-'. "The downgrade reflects our revised free operating cash flow estimates for Weatherford following weaker-than-anticipated cash inflows in the third quarter," said S&P Global Ratings credit analyst Carin Dehne-Kiley. WET SEAL: Seeks Nov. 29 Exclusive Plan Filing Deadline Extension ---------------------------------------------------------------- The Wet Seal, LLC and its affiliated debtors request the U.S. Bankruptcy Court for the District of Delaware to further extend the exclusive periods for filing a chapter 11 plan and soliciting acceptances for the plan through and including November 29, 2017 and January 29, 2018, respectively. A hearing will be held on October 4, 2017, at 10:00 a.m. Objections are due September 5. The Debtors initiated the Chapter 11 Cases to implement an orderly wind down of their business and operations. On February 14, 2017, the Office of the U.S. Trustee appointed an official committee of unsecured creditors in the chapter 11 cases. Unless extended, the Debtors' Plan Period and Solicitation Period will expire on August 31 and October 30, 2017, respectively. This is the Debtors' second request for an extension of the Exclusive Periods. The Debtors relate that on March 3, 2017, the Court entered a final order approving, among other things, the implementation of the store closing sales and related ecommerce sale initiatives described in the GOB Sale Motion, all of which concluded by or about the end of February 2017. In conjunction therewith, the Debtors relate that they have vacated their retail properties, rejected their underlying nonresidential real property leases, ceased substantially all operations, and terminated substantially all of their employees. Subsequently, the sale was approved thereby closed on or about March 8, 2017. The Debtors tell the Court that while they were pursuing these various value-maximizing liquidation efforts, they have also negotiated, together with the Official Committee of Unsecured Creditors and Crystal Financial, LLC, the continued consensual use of cash collateral during the pendency of these Chapter 11 Cases. As a result of those efforts, and upon the agreement reached by the Parties, the consensual use of cash collateral was most recently extended through and including October 31, 2017. As discussed on the record at the hearing conducted on March 3, 2017, the Court-approved settlement reached between the Debtors, the Committee and Crystal Financial established a waterfall that will govern the distribution scheme for the proceeds of certain avoidance actions that have been -- and will continue to be -- pursued by the Debtors' estates. The Debtors contend that, as set forth in the Cash Collateral Order, the avoidance action proceeds will be distributed as follows: first, to Crystal Financial, until Crystal Financial is repaid its prepetition claim in full; second, to fund the remainder of "stub rent" claims; third, to fund claims arising under section 503(b)(9) of the Bankruptcy Code; and fourth, to fund any other administrative claims that have not been paid during the course of the Chapter 11 Cases. The Debtors relate that on April 3, 2017, the Court approved that retention and employment of ASK LLP as Special Counsel to the Debtors that will pursue certain avoidance actions on behalf of the Debtors' estates. The Debtors contend that ASK LLP is currently engaged with various potential defendants regarding the estates' claims arising under chapter of the Bankruptcy Code, and the Debtors expect that ASK will continue to diligently consider all available recourse against such parties in an effort to maximize value for the Debtors' estates and creditors. The Debtors further contends that ASK has recently settled numerous claims held by the estates and is preparing to pursue litigation against other defendants, as appropriate, while also continuing to resolve matters on a consensual basis. Therefore, the Debtors assert that the outcome of the Avoidance Actions will determine whether they have sufficient assets to pursue a chapter 11 plan and/or make distributions to various creditors in connection therewith or otherwise, including with respect to "stub rent" claims and Section 503(b)(9) Claims. About The Wet Seal, LLC The Wet Seal, LLC, and its affiliates are a national multi-channel specialty retailer selling fashion apparel and accessory items designed for female customers aged 18 to 24 years old. They are currently comprised of two primary units: the retail store business and an e-commerce business. Through their retail store business, they operate approximately 142 retail locations in 37 states, principally in lease-based mall locations. They also have historically sold gift cards, which business has been primarily operated through The Wet Seal Gift Card, LLC. The Wet Seal, LLC, also known as The Wet Seal (2015), LLC, sought Chapter 11 protection (Bankr. D. Del. Case No. 17-10229) on Feb. 2, 2017. The petitions were signed by Judd P. Tirnauer, executive vice president and chief financial officer. The cases are assigned to Judge Christopher S. Sontchi. The Debtors estimated assets in the range of $10 million to $50 million and $50 million to $100 million in debt. The Debtors tapped Robert S. Brady, Esq., Michael R. Nestor, Esq., Jaime Luton Chapman, Esq., Andrew L. Magaziner, Esq., of the Young Conaway Stargatt & Taylor, LLP, as counsel. They also tapped Berkeley Research Group, LLC, as financial advisors; Hilco IP Services, LLC dba Hilco Streambank as intellectual property disposition consultant; and Donlin, Recano & Company as claims and noticing agent. The Official Committee of Unsecured Creditors tapped Cooley LLP and Saul Ewing LLP as its attorneys. WILKESBORO HOLDINGS: Taps A. Burton Shuford as Legal Counsel ------------------------------------------------------------ Wilkesboro Holdings, LLC seeks approval from the U.S. Bankruptcy Court for the Western District of North Carolina to hire legal counsel in connection with its Chapter 11 case. The Debtor proposes to employ A. Burton Shuford, Esq., to, among other things, give legal advice regarding the sale or lease of its assets; examine claims of creditors; and negotiate with creditors on the formulation of a plan of reorganization. Mr. Shuford will charge $425 per hour for his services. The hourly fee for paraprofessionals who may assist him is $205. In a court filing, Mr. Shuford disclosed that he does not hold any interest adverse to the Debtor or its estate. Mr. Shuford maintains an office at: A. Burton Shuford, Esq. 4700 Lebanon Road, Suite A-2 Mint Hill, NC 28227 Direct Dial: (980) 321-7000 Email: bshuford@abshuford.com About Wilkesboro Holdings LLC Wilkesboro Holdings, LLC, based in Charlotte, North Carolina, filed a Chapter 11 petition (Bankr. W.D.N.C. Case No. 16-31310) on August 11, 2016. In its petition, the Debtor estimated $1 million to $10 million in both assets and liabilities. The petition was signed by Clifford Hemingway, member and manager. Judge Laura T. Beyer presides over the case. John C. Woodman, Esq., at Sodoma Law, P.C., serves as bankruptcy counsel. WILLIAM LYLE: Sale of Cairo Property to Sunshine for $200K Approved ------------------------------------------------------------------- Judge Austin E. Carter of the U.S. Bankruptcy Court for the Middle District of Georgia authorized the private sale by William F. Lyle and Mary Ann Lyle of real property located at 238, 240, and 242 5th Street, NE, Cairo, Georgia, to Sunshine Holdings of Grady County, LLC, for $200,000. The sale is free and clear of all liens and encumbrances. The Debtors are authorized and directed to pay Capital City Bank and United States Small Business Administration all net sale proceeds at closing. The 14-day stay under Fed. R. Bankr. P. 6004 is waived. William F. Lyle and Mary Ann Lyle sought Chapter 11 protection (Bankr. M.D. Ga. Case No. 15-11575) on Nov. 30, 2015. WILLIAM LYLE: Sale of Valdosta Property to Ray for $325K Approved ----------------------------------------------------------------- Judge Austin E. Carter of the U.S. Bankruptcy Court for the Middle District of Georgia authorized the private sale by William F. Lyle and Mary Ann Lyle of real property located at 3174 Joseph Road, Valdosta, Georgia to Gregg A. Ray for $325,000. The sale is free and clear of all liens and encumbrances. The Debtors are authorized and directed to pay Capital City Bank and United States Small Business Administration all net sale proceeds at closing. The 14-day stay under Fed. R. Bankr. P. 6004 is waived. William F. Lyle and Mary Ann Lyle sought Chapter 11 protection (Bankr. M.D. Ga. Case No. 15-11575) on Nov. 30, 2015. WILLISTON PARKS: S&P Affirms 'B' Rating on Series 2012A Rev. Bonds ------------------------------------------------------------------ S&P Global Ratings affirmed its 'B' rating on Williston Parks & Recreation District, N.D.'s series 2012A senior-lien sales tax and gross revenue bonds. At the same time, S&P removed the rating from CreditWatch, where it had been placed with negative implications on June 1, 2017. "The outlook is stable, reflecting our opinion that near-term credit deterioration has likely been forestalled with the recent refinancing of the district's subordinate-lien debt, creating a potential pathway for the district to return to a structurally balanced budget and a stable financial position," said S&P Global Ratings credit analyst Scott Nees. S&P said, "With our June 1 rating action, we lowered the district's ratings multiple notches in light of our concerns regarding the structural imbalance apparent in its budget, an imbalance fueled primarily by a sharp falloff in sales tax revenues and by the need to divert most of the park's gross revenues to the early redemption of a bullet maturity on the district's then-outstanding series 2012C subordinate-lien bonds, pursuant to the series 2012 bond indenture. In our opinion, the imbalance was severe enough as to potentially pressure liquidity and lead to a medium-term inability to fully operate the district's facilities if left unaddressed. The downgrade also reflected our view of the district's disclosures in 2016 and 2017 that it had in prior years misapplied several million dollars in pledged revenues under the terms of the 2012 indenture, which constituted an event of default on the bonds and masked the severity of its structural budget deficit, as it had used gross revenues pledged to the 2012 bonds to instead fund operations. "We had also placed the rating on CreditWatch with negative implications because at the time of our review, the district was planning to refinance the 2012C series to level debt service on the bonds (removing the single bullet maturity) and to allow excess gross revenues to flow back to the district to fund operations, after paying current-year debt service on senior and subordinate debt and meeting any other requirements under the indenture. We understand that the 2012C bonds, which we had previously rated, were refinanced in July, and with the terms of the refinancing finalized, we have removed our rating on the series 2012A senior-lien bonds from CreditWatch and assigned the stable outlook." The series 2012A bonds are secured by the half-cent "project portion" of the district's one-cent citywide sales tax and by park gross revenues and have a senior lien against pledged revenues. The Williston Parks & Recreation District is a separate entity from the city of Williston, though its boundaries are coterminous with those of the city. It operates 370 acres of parks and athletic fields, maintains 8.7 miles of trails, runs a municipal golf course, and operates the 240,000-square-foot recreational facility for which the 2012 bonds were issued. "The stable outlook reflects our view of the potential for the district's finances to stabilize following the successful refinancing of its subordinate-lien debt and the stabilization in its sales tax revenues after two years of sharp declines in 2015 and 2016," added Mr. Nees. "We believe that with a nontrivial amount of gross revenues now flowing back to the district to support operations and not required to fund debt service, the district could see a return to a balanced budget as early as this year, if management's current budget forecast is borne out." WOMEN BY PETER: Hires Morrison-Tenenbaum as Counsel --------------------------------------------------- Women by Peter Elliot, Ltd., seeks authority from the U.S. Bankruptcy Court for the Southern District of New York to employ Morrison-Tenenbaum, PLLC, as counsel to the Debtor. Women by Peter requires Morrison-Tenenbaum to: a. advise the Debtor with respect to its powers and duties as debtor-in-possession in the management of its estate; b. assist in any amendments of Schedules and other financial disclosures and in the preparation, review, amendment of a disclosure statement and plan of reorganization; c. negotiate with the Debtor's creditors and take the necessary legal steps to confirm and consummate a plan of reorganization; d. prepare on behalf of the Debtor all necessary motions, applications, answers, proposed orders, reports and other papers to be filed by the Debtor in the bankruptcy case; e. appear before the Bankruptcy Court to represent and protect the interest of the Debtor and its estate; and f. perform all other legal services for the Debtor that may be necessary and proper for an effective reorganization. Morrison-Tenenbaum will be paid at these hourly rates: Attorney $495 Associates $350 Paraprofessionals $150 Prior to the filing of the petition, Morrison-Tenenbaum received a retainer from the Debtor in the amount of $3,127 which included the filing fee. Morrison-Tenenbaum will also be reimbursed for reasonable out-of-pocket expenses incurred. Lawrence F. Morrision, a partner of Morrison-Tenenbaum, PLLC, 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. Morrison-Tenenbaum can be reached at: Lawrence F. Morrision, Esq. MORRISON-TENENBAUM, PLLC 87 Walker Street, Floor 2 New York, NY 10013 E-mail: lmorrison@m-t-law About Women by Peter Elliot, Ltd. Women By Peter Elliot is a New York corporation that operates a luxury retailer in Manhattan. Women By Peter Elliot, Ltd., based in New York, NY, filed a Chapter 11 petition (Bankr. S.D.N.Y. Case No. 17-11889) on July 7, 2017. The Hon. James L. Garrity Jr. presides over the case. Lawrence F. Morrision, Esq., at Morrison-Tenenbaum, PLLC, serves as bankruptcy counsel. In its petition, the Debtor estimated $0 to $50,000 in assets and $1 million to $10 million in liabilities. The petition was signed by Eliot Rabin, president. WONDERWORK INC: Awaits Examiner Report, Needs Time to File Plan --------------------------------------------------------------- WonderWork, Inc., asks the U.S. Bankruptcy Court for the Southern District of New York to extend the Debtor's exclusive period to: -- file a Chapter 11 plan through November 24, 2017 or 30 days following the filing of the Examiner's report; and -- solicit acceptances of a Chapter 11 plan through and including January 24, 2017 or 90 days following the filing of the Examiner's report. The Debtor relates that it was a solvent organization that was forced to seek bankruptcy relief following the confirmation of an arbitration award in favor of Help Me See, Inc. -- the arbitration arose out of a contract dispute between the Parties. The Debtor further relates that it has filed for bankruptcy relief after HMS froze all of its bank accounts because it impossible for the Debtor to pay its staff, rent, utilities, and other obligations. The Debtor intends to file a plan of reorganization and exit from Chapter 11 as expeditiously as possible. Pursuant to the Court's Order entered on April 21, 2017, an Examiner has been appointed to the Debtor's bankruptcy case. The Debtor contends that since its first request for an extension, it has continued to make progress towards reorganization -- the lion's share of the Debtor's efforts has been working extensively with the Examiner in its investigation of the Debtor. The Debtor claims the Examiner is also in the process of interviewing almost all of the members of the Debtor's staff, the chairman of the Debtor's board and audit committee, and former board member -- and the Debtor has assented to every interview request. The Debtor believes that these interviews will extend into the latter half of August. The Debtor relates that in July 2017, the Examiner has informally requested that the Debtor consent -- and the Debtor consented -- to an extension of its deadline to file a report to September 29, 2017. Consequently, on July 28, the Court granted the Examiner's request and extended the deadline to file a report to September 29. Accordingly, the Debtor seeks an extension of its exclusive periods in order to provide ample time to obtain greater clarity on the main issues in this case -- principally, to allow the Examiner to complete its investigation, as well as allow BDO to complete its audit. The Debtor tells the Court that the Examiner's report and BDO's audit will confirm the amount of unrestricted funds in the Debtor's possession, which will be the source of funding for the Debtor's plan of reorganization. As such, the Debtor contends that it would be premature to file a plan of reorganization prior to the finalization of the Examiner's report. About Wonderwork, Inc. Wonderwork, Inc., is a charity that has provided grants to fund more than 220,000 surgeries in just six years. The Debtor filed a Chapter 11 petition (Bankr. S.D.N.Y. Case No. 16-13607) on Dec. 29, 2016, and is represented by Aaron R. Cahn, Esq., at Carter Ledyard & Milburn LLP, as counsel; and BDO USA, LLP, as auditor and tax advisor. The petition was signed by Brian Mullaney, chief executive officer. At the time of filing, the Debtor had $10 million to $50 million in estimated assets and $10 million to $50 million in estimated debts. Jason R. Lilien has been appointed by the Court as Chapter 11 examiner. He hired Loeb & Loeb LLP as his counsel. WORLD HEALTH JETS: Sale of Embraer Executive Aircraft on Sept. 1 ---------------------------------------------------------------- An Embraer executive aircraft will be sold at a public sale on Friday, Sept. 1, 2017, at 11:00 a.m. CST. The sale will be held at the Baker Aviation Facility at Meacham Int'l Airport, FTW. This Property will be sold at the auction: Embraer Executive Aircraft EMB-500 Phenom 100 (2013) (Serial #50000302; Reg. #N123RX) and Two (2) Pratt & Whitney Canada PW617F Engines (Serial ## PCE-LC0574 (L); PCE-LC0572 (R)), All Avionics & Equipment, All Books & Records The Property has a Retail Blue Book Value of US$2,900,000. The Required Minimum Bid for the Property is US$2,000,000. The Secured Party may be reached at: Origin Bank f/k/a Community Trust Bank 2211 North 7th Street West Monroe, Louisiana 71291 The Borrower/Debtor may be reached at: World Health Jets, LLC P.O. Box 13130 Jackson, Mississippi 39236 The Guarantor may be reached at: Mitchell Chad Barrett 132 Dunlieth Way Clinton, Mississippi 39056 Pursuant to, inter alia, Sections 9-610 et seq. of the Uniform Commercial Code effective in the State of Texas (Tex. Bus. & Com. Code Ann. Sections 9.610 et seq.), the terms and conditions of a Department of Transportation Federal Aviation Administration Aircraft Security Agreement dated November 27, 2013, recorded by the Federal Aviation Administration on February 24, 2014, as conveyance number DV014732 between the Borrower and the Secured Party, and the terms of an Agreed Order on Origin Bank's Motion to Lift Automatic Stay and Abandon Collateral and For Other Relief entered by the United States Bankruptcy Court for the Southern District of Mississippi in In Re: Opus Management Group Jackson, LLC, Consolidated Chapter 11 Case No. 16-00297-NPO (Dkt. #270; April 4, 2016): The Secured Party will SELL THE COLLATERAL TO THE HIGHEST AND BEST QUALIFIED CASH BIDDER at a PUBLIC SALE on Friday, September 1, 2017, at 11:00 a.m. Central Time (the "Sale" and/or "Sale Date") at Baker Aviation Facility located at Meacham International Airport in Fort Worth, Texas (200 Texas Way, Suite 120, Fort Worth, TX 76106). The Collateral will be transferred to the successful bidder by bill of sale "AS IS," "WHERE IS," with no representations or warranties by Secured Party. For further information regarding the Sale, including applicable terms and conditions, instructions for submission of written bids, and dates available for viewing and inspection, contact mpalmer@cctb.com or (601) 427-1355. To request Collateral specifications or to arrange a viewing contact Mente Group ((214) 351-9595). SECURED PARTY IN ITS SOLE DISCRETION HEREBY RESERVES THE RIGHT TO CANCEL OR POSTPONE ANY OR ALL SALES OF THE COLLATERAL. THE SALE MAY BE ADJOURNED FROM TIME TO TIME, AND NOTICE OF ANY ADJOURNED SALE DATE WILL BE GIVEN ONLY AT THE TIME OF THE SCHEDULED SALE AND TO THOSE WHO ATTEND THE SALE. Origin Bank is represented by: William H. Leech, Esq. Sarah Beth Wilson, Esq. Christopher H. Meredith, Esq. COPELAND, COOK, TAYLOR & BUSH, P.A. 600 Concourse, Suite 100 1076 Highland Colony Pkwy (Zip—39157) P.O. Box 6020 Ridgeland, MS 39158 Telephone: (601) 856-7200 Facsimile: (601) 856-7626 E-mail: bleech@cctb.com sbwilson@cctb.com cmeredith@cctb.com [*] Brian Rosen Joins Proskauer's Restructuring & Bankruptcy Group ------------------------------------------------------------------ International law firm Proskauer on Aug. 23, 2017, announced the arrival of corporate partner Brian S. Rosen in the Firm's Business Solutions, Governance, Restructuring & Bankruptcy Group ("BSGRB") in the New York office. "We are delighted to welcome Brian to the team," said Proskauer's BSGRB co-head Jeff Marwil. "Brian is a real talent and leader in representing debtors, creditors and acquirors in distressed situations and will be a great asset to our thriving business." Mr. Rosen's practice focuses on Chapter 11 and out-of-court debt restructurings, acquisitions of distressed companies and assets and matters relating to sovereign indebtedness. He has been recognized by Legal 500 US for his work in Corporate Restructuring and by Best Lawyers in America for his work in Bankruptcy and Creditor Debtor Rights/Insolvency and Reorganization. He also has been named as a top rated Bankruptcy attorney in New York since 2007 by Super Lawyers. Proskauer's BSGRB chair Martin J. Bienenstock said, "I was fortunate to work with Brian for 23 years. We collaborated on the reorganization of Enron. I am thrilled to have Brian join us and be my partner once again. He will be instrumental in the continued growth and excellence of Proskauer's restructuring and governance group." Proskauer has had major roles in some of the largest, most contested and highest-profile chapter 11 and sovereign restructuring cases in America today. The Firm currently represents The Financial Oversight and Management Board for Puerto Rico as lead outside counsel for the historic restructuring of Puerto Rico as the first US territory ever authorized to undergo a bankruptcy process, involving 63 instrumentalities, approximately $74 billion of bond debt, and $50 billion of underfunded public pension liabilities. Proskauer also represents the Statutory Unsecured Claimholders' Committee in the Caesars Entertainment Operating Company chapter 11 case, and serves as a co-counsel to the parent debtor in the chapter 11 case of Energy Future Holdings Corp. [^] BOND PRICING: For the Week from August 21 to 25, 2017 --------------------------------------------------------- Company Ticker Coupon Bid Price Maturity ------- ------ ------ --------- -------- AM Castle & Co CASL 5.250 15.000 12/30/2019 AM Castle & Co CASL 7.000 58.000 12/15/2017 Alpha Appalachia Holdings Inc ANR 3.250 2.070 8/1/2015 Amyris Inc AMRS 9.500 60.628 4/15/2019 Armstrong Energy Inc ARMS 11.750 11.500 12/15/2019 Armstrong Energy Inc ARMS 11.750 11.500 12/15/2019 Avaya Inc AVYA 10.500 3.000 3/1/2021 Avaya Inc AVYA 10.500 8.550 3/1/2021 BPZ Resources Inc BPZR 6.500 3.017 3/1/2015 BPZ Resources Inc BPZR 6.500 3.017 3/1/2049 Bon-Ton Department Stores Inc/The BONT 8.000 39.500 6/15/2021 BreitBurn Energy Partners LP / BreitBurn Finance Corp BBEP 7.875 22.500 4/15/2022 BreitBurn Energy Partners LP / BreitBurn Finance Corp BBEP 8.625 19.590 10/15/2020 BreitBurn Energy Partners LP / BreitBurn Finance Corp BBEP 8.625 14.500 10/15/2020 BreitBurn Energy Partners LP / BreitBurn Finance Corp BBEP 8.625 14.500 10/15/2020 Broadview Networks Holdings Inc BVWN 10.500 100.000 11/15/2017 Buffalo Thunder Development Authority BUFLO 11.000 38.250 12/9/2022 Caesars Entertainment Operating Co Inc CZR 5.750 86.250 10/1/2017 Calvert Social Investment Foundation Inc CALVRT 1.000 100.000 8/31/2017 Chassix Holdings Inc CHASSX 10.000 8.000 12/15/2018 Chassix Holdings Inc CHASSX 10.000 8.000 12/15/2018 Chukchansi Economic Development Authority CHUKCH 9.750 51.750 5/30/2020 Chukchansi Economic Development Authority CHUKCH 9.750 45.250 5/30/2020 Cinedigm Corp CIDM 5.500 35.000 4/15/2035 Claire's Stores Inc CLE 9.000 50.000 3/15/2019 Claire's Stores Inc CLE 8.875 7.875 3/15/2019 Claire's Stores Inc CLE 6.125 45.125 3/15/2020 Claire's Stores Inc CLE 7.750 11.625 6/1/2020 Claire's Stores Inc CLE 9.000 49.875 3/15/2019 Claire's Stores Inc CLE 7.750 11.625 6/1/2020 Claire's Stores Inc CLE 9.000 49.875 3/15/2019 Claire's Stores Inc CLE 6.125 47.500 3/15/2020 Cobalt International Energy Inc CIE 2.625 29.000 12/1/2019 Cumulus Media Holdings Inc CMLS 7.750 30.630 5/1/2019 DDR Corp DDR 7.875 117.045 9/1/2020 EV Energy Partners LP / EV Energy Finance Corp EVEP 8.000 40.001 4/15/2019 EXCO Resources Inc XCO 7.500 23.290 9/15/2018 EXCO Resources Inc XCO 8.500 15.825 4/15/2022 Emergent Capital Inc EMGC 8.500 48.571 2/15/2019 Energy Conversion Devices Inc ENER 3.000 7.875 6/15/2013 Energy Future Holdings Corp TXU 6.500 20.125 11/15/2024 Energy Future Holdings Corp TXU 11.250 70.125 11/1/2017 Energy Future Holdings Corp TXU 10.875 70.125 11/1/2017 Energy Future Holdings Corp TXU 10.875 69.875 11/1/2017 Energy Future Holdings Corp TXU 9.750 29.250 10/15/2019 Energy Future Intermediate Holding Co LLC / EFIH Finance Inc TXU 11.250 34.000 12/1/2018 Energy Future Intermediate Holding Co LLC / EFIH Finance Inc TXU 11.250 35.000 12/1/2018 Energy Future Intermediate Holding Co LLC / EFIH Finance Inc TXU 9.750 34.750 10/15/2019 Fleetwood Enterprises Inc FLTW 14.000 3.557 12/15/2011 GenOn Energy Inc GENONE 9.500 69.250 10/15/2018 GenOn Energy Inc GENONE 9.500 68.875 10/15/2018 GenOn Energy Inc GENONE 9.500 68.875 10/15/2018 Global Brokerage Inc GLBR 2.250 45.500 6/15/2018 Gulfmark Offshore Inc GLFM 6.375 20.250 3/15/2022 Homer City Generation LP HOMCTY 8.137 38.750 10/1/2019 Illinois Power Generating Co DYN 7.000 34.125 4/15/2018 Illinois Power Generating Co DYN 6.300 33.000 4/1/2020 IronGate Energy Services LLC IRONGT 11.000 35.000 7/1/2018 IronGate Energy Services LLC IRONGT 11.000 35.000 7/1/2018 IronGate Energy Services LLC IRONGT 11.000 35.000 7/1/2018 IronGate Energy Services LLC IRONGT 11.000 35.000 7/1/2018 Jack Cooper Holdings Corp JKCOOP 9.250 52.750 6/1/2020 Kellwood Co KWD 7.625 95.488 10/15/2017 Las Vegas Monorail Co LASVMC 5.500 0.833 7/15/2019 Lehman Brothers Holdings Inc LEH 4.000 3.326 4/30/2009 Lehman Brothers Holdings Inc LEH 2.000 3.326 3/3/2009 Lehman Brothers Holdings Inc LEH 1.500 3.326 3/29/2013 Lehman Brothers Holdings Inc LEH 1.600 3.326 11/5/2011 Lehman Brothers Holdings Inc LEH 5.000 3.326 2/7/2009 Lehman Brothers Holdings Inc LEH 2.070 3.326 6/15/2009 Lehman Brothers Holdings Inc LEH 1.383 3.326 6/15/2009 Lehman Brothers Inc LEH 7.500 1.226 8/1/2026 MF Global Holdings Ltd MF 3.375 27.375 8/1/2018 MModal Inc MODL 10.750 6.125 8/15/2020 Mashantucket Western Pequot Tribe MASHTU 7.350 19.125 7/1/2026 McClatchy Co/The MNI 5.750 99.056 9/1/2017 NeuStar Inc NSR 4.500 103.007 1/15/2023 Nine West Holdings Inc JNY 8.250 20.000 3/15/2019 Nine West Holdings Inc JNY 6.125 13.171 11/15/2034 Nine West Holdings Inc JNY 6.875 14.500 3/15/2019 Nine West Holdings Inc JNY 8.250 19.125 3/15/2019 Nortel Networks Capital Corp NT 7.875 16.500 6/15/2026 OMX Timber Finance Investments II LLC OMX 5.540 10.000 1/29/2020 Permian Holdings Inc PRMIAN 10.500 29.125 1/15/2018 Permian Holdings Inc PRMIAN 10.500 29.125 1/15/2018 Prospect Holding Co LLC / Prospect Holding Finance Co PRSPCT 10.250 48.250 10/1/2018 Renco Metals Inc RENCO 11.500 22.000 7/1/2003 Rex Energy Corp REXX 8.875 46.339 12/1/2020 Rolta LLC RLTAIN 10.750 18.225 5/16/2018 SAExploration Holdings Inc SAEX 10.000 60.125 7/15/2019 Samson Investment Co SAIVST 9.750 7.000 2/15/2020 SandRidge Energy Inc SD 7.500 2.081 2/15/2023 Southwestern Energy Co SWN 7.350 99.308 10/2/2017 SunEdison Inc SUNE 2.375 1.900 4/15/2022 SunEdison Inc SUNE 0.250 2.152 1/15/2020 SunEdison Inc SUNE 2.750 2.250 1/1/2021 SunEdison Inc SUNE 5.000 10.500 7/2/2018 SunEdison Inc SUNE 2.625 2.000 6/1/2023 SunEdison Inc SUNE 3.375 1.900 6/1/2025 TMST Inc THMR 8.000 19.500 5/15/2013 Talos Production LLC / Talos Production Finance Inc TALPRO 9.750 62.125 2/15/2018 Talos Production LLC / Talos Production Finance Inc TALPRO 9.750 62.125 2/15/2018 TerraVia Holdings Inc TVIA 5.000 37.875 10/1/2019 TerraVia Holdings Inc TVIA 6.000 37.875 2/1/2018 Terrestar Networks Inc TSTR 6.500 10.000 6/15/2014 UCI International LLC UCII 8.625 6.875 2/15/2019 Vanguard Natural Resources LLC / VNR Finance Corp VNR 7.875 20.500 4/1/2020 Vanguard Operating LLC VNR 8.375 21.000 6/1/2019 Walter Energy Inc WLTG 9.875 0.834 12/15/2020 Walter Energy Inc WLTG 8.500 0.834 4/15/2021 Walter Energy Inc WLTG 9.875 0.834 12/15/2020 Walter Energy Inc WLTG 9.875 0.834 12/15/2020 Walter Investment Management Corp WAC 4.500 20.000 11/1/2019 iHeartCommunications Inc IHRT 6.875 61.486 6/15/2018 iHeartCommunications Inc IHRT 10.000 66.000 1/15/2018 rue21 inc RUE 9.000 0.500 10/15/2021 rue21 inc RUE 9.000 0.842 10/15/2021 ********* 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 2017. 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 ***