/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/171006.mbx T R O U B L E D C O M P A N Y R E P O R T E R Friday, October 6, 2017, Vol. 21, No. 278 Headlines 1325 VIRGINIA: U.S. Trustee Unable to Appoint Committee 135 WEST 13: Plan Outline OK'd, Plan Hearing on Nov. 15 99 CENTS: Moody's Lowers Probability Default Rating to Ca-PD A & A OF MARION: U.S. Trustee Unable to Appoint Committee ADPT DFW: Reorganization Plan Declared Effective on Oct. 2 ADPT DFW: Substantive Consolidation Under Plan Best Utilizes Assets ADVANTAGE ENERGY: Loretta Cross Agrees to Serve as Ch. 11 Trustee AGAIA INC: Case Summary & 20 Largest Unsecured Creditors AGCO CORP: S&P Lowers $300MM Senior Unsecured Notes Rating to BB+ ALABAMA PARTNERS: Has Court's Nod to Use Cash Collateral ALL STAR MEDICAL: May Continue Using Cash Collateral ALLIANCE ONE: Reaffirms Guidance for Fiscal 2018 ALTA MESA: Expects to Close Silver Run Transaction by December ANGELICA CORP: 3rd Amended Plan Declared Effective on Sept. 30 ANTHONY TSIKOURIS: Sale of Hobart Property for $425K Approved APPVION INC: Bankruptcy Court Approves Ch.11 First Day Motions APPVION INC: Oct. 11 Meeting Set to Form Creditors' Panel ATHLETIC COMMUNITY: Wants to Use Cash Collateral Through March 2018 AYTU BIOSCIENCE: Files Pro Forma Balance Sheet as of June 30 B & B METALS: Unsecureds to Recoup 21.681% in 10 Years B N EMPIRE: Hires Johnson Pope as Counsel BEAR FIGUEROA: Proposes $2.43 Million Refinancing Loan BERNARD L. MADOFF: Brown Rudnick Secures Major Victory for Sentry BILL BARRETT: Updates 2017 Operating Guidance BLUE BEE: Seeks Permission to Continue Cash Use Until Jan. 20 BMC TRANSPORTATION: Seeks Authorization to Use Cash Collateral BOSS REAL ESTATE: Hearing on Plan Outline Approval Set for Dec. 6 BOWLIN FUNERAL: Wants to Use Commerce Bank Cash Collateral BREITBURN ENERGY: Committee Seeks Termination of Exclusivity BRIAR HILL: Receiver Beyond Scope of Bankr. Court Authority BRINK'S CO: S&P Lowers Corp. Credit Rating to 'BB+', Outlook Stable BRUGNARA PROPERTIES: Unsecureds To Be Paid in Full in 60 Days CADIZ INC: Agrees to Settle Dispute with MSD Master for $3.3M CAROLINA MOLD: Allowed to Use Cash to Defray October 2017 Expenses CASHMAN EQPT: Oct. 11 Non-Evidentiary Hearing on Sale of Vessels CATALENT PHARMA: Moody's Rates New Secured Loans 'Ba3' CB URS HOLDINGS: S&P Assigns B Corp. Credit Rating, Outlook Stable CHIRAG PATEL: S. Patel Seeks Appointment of Chapter 11 Trustee CIBER INC: Nov. 15 Liquidation Plan Confirmation Hearing CIRCLE Z: Selling Pump Units 102, 107 and 108 COLORADO PROPERTY: U.S. Trustee Unable to Appoint Committee COMPARK BUSINESS: S&P Rates 2017 GO Refunding Bonds 'BB+' CONFIRMATRIX LABORATORY: Can Use Cash Collateral Until March 2018 CONSOLIDATED AEROSPACE: Moody's Affirms B3 Corporate Family Rating CONSTELLATION ENTERPRISES: Case Converted Into Ch. 7 Proceeding CONSTRUTORA E INCORPORADORA: Chapter 15 Case Summary CONTEXTMEDIA HEALTH: S&P Alters Outlook to Neg. & Affirms 'B-' CCR CROCKETT COGENERATION: S&P Cuts $295MM Secured Notes Rating to BB+ CROSSROADS SYSTEMS: Completes Reorganization, Reports Q3 Results CUSTOM FLATBED: Hires Thompson Accounting as Accountant ENERGY FUTURE: Court to Review NextEra Termination Fee Order ENVIVA PARTNERS: Fitch Assigns BB- First Time IDR; Outlook Stable ERC TOPCO: S&P Assigns 'B-' Corp Credit Rating, Outlook Stable ERIK SAMUEL DE JONG: Court Reduces Landlord's Claim to $240K EXCHANGE AVENUE: Case Summary & 17 Largest Unsecured Creditors FIREHOUSE RIBS: U.S. Trustee Unable to Appoint Committee FIRST DATA: Fitch Affirms B+ LongTerm Issuer Default Rating FIRST FLIGHT: Can Continue Using WF Cash Collateral Until Nov. 30 FUNCTION(X) INC: Bump Digital Will Manage Facebook Pages FUNCTION(X) INC: Mitchell Nelson Resigns from All Positions G.E.M. HOLDINGS: Case Summary & Largest Unsecured Creditors GALVESTON BAY PROPERTIES: Hires Mercer as Bankruptcy Counsel GIBSON ENERGY: S&P Affirms 'BB' Rating on Announced Refinancing GILDED AGE: Requires Access to Cash for October 2017 Expenses GREAT BASIN: Jeffrey Rona Quits as Chief Financial Officer GST AUTOLEATHER: Business as Usual While in Chapter 11 GST AUTOLEATHER: Case Summary & 30 Largest Unsecured Creditors GST AUTOLEATHER: To Sell to Lenders Absent Viable Offer GULFMARK OFFSHORE: Hughes Hubbard Advises DNB in Exit Financing GV HOSPITAL: PCO Submits Third Interim Report GYMBOREE CORP: Taps Deloitte & Touche for Fresh Start Accounting HAMPSHIRE GROUP: Disclosures Approved, Plan Confirmed HARRINGTON & KING: Court Extends Cash Collateral Use Until Oct. 13 HELLO NEWMAN: $300,000 in Financing From Admar Investments OK'd HILTZ WASTE DISPOSAL: Trustee Can Continue Using Cash Until Oct. 24 HJR LLC: Old National Bank Seeks to Prohibit Cash Collateral Use HOLOGIC INC: Moody's Rates New $350MM Senior Unsecured Bonds Ba3 HOLOGIC INC: Moody's Rates New $3BB Senior Credit Facility Ba1 HOLOGIC INC: S&P Rates New $350MM Senior Unsecured Notes 'BB-' HUMMEL STATION: S&P Affirms 'BB-' Rating on Sr. Secured Term Loan B IRONCLAD PERFORMANCE: Court Approves Sale Bid Procedures ITUS CORP: Regains Compliance with NASDAQ Listing Requirement LANE FAMILY: Wants to Use Cash Collateral Through Dec. 31 LEXINGTON HOSPITALITY: Allowed to Use Cash Collateral Until Oct. 19 LINCOLN JAMES: Reaches Deal With Bank on Cash Use LTD MANAGEMENT: Allowed to Use Up to $7,931 Cash Through Nov. 30 MARINA BIOTECH: Stefan Loren Quits from Board of Directors MERCYHURST UNIVERSITY: S&P Cuts Rating on Outstanding Bonds to BB+ MESOBLAST LIMITED: Clinical Trial of MPC Therapy Ends Enrollment MICHAEL JOSEPH KILROY: Blocking Public Access to Papers Unwarranted MIDWEST ASPHALT: Cash Collateral Use Extended Until Oct. 31 MONAKER GROUP: Mark Wilton Reports 13.1% Stake as of Oct. 2 MRO HOLDINGS: Moody's Assigns B2 CFR; Outlook Stable MRO HOLDINGS: S&P Assigns 'B+' Corp Credit Rating, Outlook Stable NAVICURE INC: S&P Assigns 'B-' CCR Amid ZirMed Deal NORALTA LODGE: S&P Affirms Then Withdraws CCR Amid Notes Redemption NORTHERN CAPITAL: Hires Gates O'Doherty Gonter & Guy as Counsel OL FRESH LLC: Can Continue Using PUB Cash Collateral Until Nov. 21 OMINTO INC: Appoints Friedman LLP as New Audit Firm P3 FOODS: Allowed to Continue Using PNC Cash Until Nov. 7 PADCO PRESSURE: DOJ Watchdog Names J. Luster as Chapter 11 Trustee PARADOCS PROPERTIES: W Equities Seeks to Bar Use of Cash Collateral PEORIA REGIONAL: Voluntary Chapter 11 Case Summary PERFUMANIA HOLDINGS: Landlords Object to Plan & Disclosures PLASTIPAK HOLDINGS: Moody's Rates Sr. Unsecured Bonds Due 2025 'B3' PLAZA BROADWAY: Hires Quilling Selander Lownds as Counsel PRODUCTION PATTERN: Needs Access to Cash Until December 2017 QUALITY CARE: S&P Lowers CCR to B- on Near-Term Covenant Pressure REBUILTCARS CORP: Court Signs 6th Interim Order on Cash Use REBUILTCARS CORP: Has Interim Nod to Use Cash Until Oct. 31 RENNOVA HEALTH: Issues 1.75 Million Series F Preferred Stock S&F MEAT: Taps Bochetto & Lentz as Special Counsel SAMARITAN COMMUNITY: Hires Porter Law Network as Attorney SCIENTIFIC GAMES: Prices Private Offering of $350 Million Notes SE PROFESSIONALS: Can Continue Using Cash Collateral Until Nov. 18 SEADRILL LIMITED: Directors Taps Baker Tilly as Financial Advisor SEADRILL LIMITED: Hires Skadden Arps as Special Counsel SEADRILL LIMITED: Taps Houlihan Lokey as Financial Advisor SEADRILL LIMITED: Taps KPMG as Tax Consultant SEADRILL LIMITED: Taps PwC UK as Independent Auditor SEARS CANADA: To Choose Between Chairman's Bid and Liquidation SERENITY HOMECARE: Narvaez Buying 2014 Chevrolet Truck for $16K SHADRACH MESHACH: Amends Plan to Provide More Info on Asset Sale SHADRACH MESHACH: Plan Outline Okayed, Plan Hearing on Nov. 3 SOUTHWORTH COMPANY: Wants Authority to Use Cash Collateral SUCCESS INC: Has Final OK To Use Cash Collateral Through Oct. 31 SUNEDISON INC: Court Approves Transition Deals with TERP, GLBL SUNVALLEY SOLAR: Board Okays 2017 Equity Incentive Plan SUNVALLEY SOLAR: Henry Yu Quits from Board of Directors TAKATA CORP: Says on Track to Meet Feb. 2018 Deadline to Close Sale THERMAGEM LLC: Mercantil Seeks Appointment of Chapter 11 Trustee TRANSOCEAN INC: Moody's Rates Proposed $750MM Sr. Unsec. Notes B1 TRANSOCEAN INC: S&P Cut Corp Credit Rating to B, Outlook Negative UNI-PIXEL INC: Future Tech Buying All Assets for $1.5 Million UNI-PIXEL INC: U.S. Trustee Forms Three-Member Committee URS MERGER: Moody's Assigns First Time B2 CFR; Outlook Stable VANTAGE SPECIALTY: S&P Affirms B- CCR Amid HIG Capital Acquisition ZEO HEALTH: Hires K&L Gates as Litigation Counsel ZETTA JET: Interim Cash Use Until Oct. 5 Approved [*] McDonald Hopkins Elects Four Attorneys to Firm's Membership [*] Patrick Trostle Joins Thompson & Knight's Bankruptcy Practice [*] Richard Levin Named Collier on Bankruptcy Co-Editor-in-Chief [] Goodwin Elects 12 New Partners to Firm's Partnership [^] BOOK REVIEW: Oil Business in Latin America: The Early Years ********* 1325 VIRGINIA: U.S. Trustee Unable to Appoint Committee ------------------------------------------------------- An official committee of unsecured creditors has not yet been appointed in the Chapter 11 case of 1325 Virginia Street, LLC. About 1325 Virginia Street LLC Based in Charleston, West Virginia, 1325 Virginia Street, LLC, sought protection under Chapter 11 of the Bankruptcy Code (Bankr. S.D. W.Va. Case No. 17-20457) on Sept. 5, 2017. Jonathan Cavendish, its member, 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 Frank W. Volk presides over the case. 135 WEST 13: Plan Outline OK'd, Plan Hearing on Nov. 15 ------------------------------------------------------- 135 West 13 LLC is now a step closer to emerging from Chapter 11 protection after a bankruptcy court approved the outline of its plan of reorganization. The U.S. Bankruptcy Court for the Southern District of New York on Oct. 2 gave the thumbs-up to the disclosure statement, allowing the company to start soliciting votes from creditors. A court hearing to consider confirmation of the plan is scheduled for Nov. 15, at 11:00 a.m. The hearing will take place at Courtroom 701. Under the restructuring plan, each creditor holding a Class 5 general unsecured claim will receive a pro-rata distribution of the cash remaining in the "plan fund" up to the allowed amount of its claim, plus interest. Class 5 is impaired and unsecured creditors are entitled to vote to accept or reject the plan, according to 135 West's latest plan filed on Sept. 28. A copy of the first amended plan is available for free at http://bankrupt.com/misc/nysb17-11371-63.pdf About 135 West 13 LLC 135 West 13 LLC owns and operates two residential properties located at 133 West 13th Street and 135 West 13th Street, New York, New York. The properties are multi-family residential rental properties with a mix of rent stabilized and non-rent stabilized units. The properties contain a total of 12 units. The Debtor filed a Chapter 11 bankruptcy petition (Bankr. S.D.N.Y. Case No. 17-11371) on May 17, 2017. The petition was signed by Max Dolgicer, member. The Debtor disclosed total assets of $15.02 million and total liabilities of $13.34 million. Fred B. Ringel, Esq. at Robinson Brog Leinwand Greene Genovese & Gluck, PC, represents the Debtor as bankruptcy counsel. James E. Schwartz, Esq. at Cyruli Shanks Hart & Zizmor, LLP, is the Debtor's special counsel. No trustee, examiner or creditors committee has been appointed. 99 CENTS: Moody's Lowers Probability Default Rating to Ca-PD ------------------------------------------------------------ Moody's Investors Service stated that if the amendment of the senior secured Term Loan announced by 99 Cents Only LLC on September 19, 2017 proceeds as outlined, it will constitute a distressed exchange, which is an event of default under Moody's definition of default. As a result, Moody's downgraded the company's Probability of Default rating to Ca-PD from Caa1-PD and affirmed its Corporate Family Rating at Caa1. Moody's also affirmed the Caa3 rating of the senior unsecured notes maturing December 2019 and the Caa1 rating of the senior secured term loan maturing January 2019. Additionally Moody's also downgraded the company's speculative grade liquidity rating to SGL-4 from SGL-3 pending the closing of the amendment. Moody's expects to upgrade the PDR to Caa1-PD/LD upon the closing of the amendment. Subsequently the LD designation will be removed after three business days. The rating outlook is changed to negative from stable. "Although the company's proposed amendment will go a long way to ease immediate liquidity pressures as it takes one meaningful maturity off the table until 2022, liquidity will remain constrained as the company has $250 million notes maturing in December 2019," stated Moody's Vice President Mickey Chadha. "Moody's acknowledge the meaningful improvement in company's operating performance but there is still uncertainty surrounding the company's ability to deal with its 2019 debt maturities, hence the negative outlook", Chadha added. Downgrades: Issuer: 99 Cents Only Stores LLC -- Probability of Default Rating, Downgraded to Ca-PD from Caa1- PD -- Speculative Grade Liquidity Rating, Downgraded to SGL-4 from SGL-3 Outlook Actions: Issuer: 99 Cents Only Stores LLC -- Outlook, Revised to Negative from Stable Affirmations: Issuer: 99 Cents Only Stores LLC -- Corporate Family Rating, Affirmed Caa1 -- Senior Secured Bank Credit Facility, Affirmed Caa1(LGD3) -- Senior Unsecured Regular Bond/Debenture, Affirmed Caa3(LGD5) RATINGS RATIONALE The Caa1 Corporate Family Rating reflects Moody's expectations that the proposed amendment will extend the maturity of the company's term loan and the company will continue to improve operating performance and EBITDA. The rating also reflects 99¢ Only Stores' weak credit metrics, geographic concentration in California and the intense competitive business environment in its core markets. Despite Moody's expectation of improvement in credit metrics from current levels, leverage will still be high with debt/EBITDA (including lease adjustments) expected to be around 8.0 times and EBIT/interest expected to be below 1.0 time in the next 12 months. The company's new management team has seen success in implementing a turnaround strategy which includes improved inventory and shrink management, and improved efficiencies including new third party distributor relationships. Management has also started to upgrade the company's store base to enhance the customer experience and has already installed a perpetual inventory system to better manage inventory levels. The improvement in operations has been evident in the positive same store sales growth for the last four quarters and improved profitability. The improvements in working capital and top line growth will also result in modest positive free cash flow in the next 12 months. Other rating factors include the company's weak liquidity pending the extension of the term loan maturity, its current unsustainable capital structure and the positive growth prospects for the dollar store sector which benefits from affordable, low price points and relative resistance to economic cycles. The negative outlook reflects the uncertainty surrounding the company's ability to amend and extend its term loan and refinance its the senior notes such that the company's capital structure is more sustainable. Ratings could be downgraded if the company does not refinance its debt maturing in 2019 well in advance of its maturity or credit metrics do not improve from current levels. Any change in the company's financial policies, could also result in a downgrade. Given the weak credit metrics a ratings upgrade is unlikely in the near-term. Ratings could be upgraded should 99¢ Only Stores' earnings grow such that debt to EBITDA approaches 7.0 times and free cash flow is positive, and the company refinances its debt maturing in 2019 well in advance of its maturity. A ratings upgrade would also require adequate liquidity and financial policies which would support leverage remaining at its improved levels. 99¢ Only Stores LLC is controlled by affiliates of Ares Management and Canada Pension Plan Investment Board. As of September 7, 2017, the Company operated 391 retail stores in California, Texas, Arizona, and Nevada. Revenues are about $2.0 billion. The principal methodology used in these ratings was Retail Industry published in October 2015. A & A OF MARION: U.S. Trustee Unable to Appoint Committee --------------------------------------------------------- An official committee of unsecured creditors has not yet been appointed in the Chapter 11 cases of A & A of Marion County, LLC, and G & S of Marion County, LLC, as of Sept. 28, according to a court docket. About A & A of Marion County A & A of Marion County, LLC, is the registered owner of a fee simple interest in a property located at 7360 SW Highway 200, Ocala, Florida, which is valued at $600,000. Meanwhile, G & S of Marion County, LLC, owns a fee simple interest in a property located at 7350 SW Highway 200, Ocala, which is valued at $600,000. The Debtors sought protection under Chapter 11 of the Bankruptcy Code (Bankr. M.D. Fla. Case Nos. 17-02959 and 17-02960) on Aug. 14, 2017. Dr. Ganesh D. Arora, managing member, signed the petition. At the time of the filing, the Debtors disclosed $600,000 in assets and $4.3 million in liabilities. Judge Jerry A. Funk presides over the case. ADPT DFW: Reorganization Plan Declared Effective on Oct. 2 ---------------------------------------------------------- The Third Amended Joint Plan of Reorganization of ADPT DFW Holdings LLC, et al., has been consummated and the effective date occurred on Oct. 2, 2017. The Plan was confirmed on Sept. 29, 2017, by the U.S. Bankruptcy Court for the Northern District of Texas. BankruptcyData.com related that "The Plan contemplates to provide for the establishment on the Effective Date of the Liquidation Trust for the primary purpose of administering and liquidating the Trust Assets. On the Effective Date, all Assets of the Debtors' Estates, including, but not limited to, Causes of Action, any recoveries related to the issuance of the Bond and the related letter of credit draw, certain accounts receivable, and cash, will vest in the Liquidation Trust." The report continues, "All Interests in the Debtors will be cancelled, and the Holders of Class 3 Interests will not be entitled to, and will not receive or retain, any property on account of such Interests under the Plan." About ADPT DFW Holdings Adeptus Health LLC -- http://www.adpt.com/-- through its subsidiaries, owns and operates hospitals and free standing emergency rooms in partnership with various healthcare providers. Adeptus Health Inc. is a holding company whose sole material asset is a controlling equity interest in Adeptus Health LLC. Lewisville, Texas-based ADPT DFW Holdings LLC and its affiliates, including Adeptus Health, Inc., and Adeptus Health LLC, each filed Chapter 11 bankruptcy petitions (Bankr. N.D. Tex. Lead Case No. 17-31432) on April 19, 2017, listing $798.7 million in total assets and $453.48 million in total debt as of Sept. 30, 2016. Andrew Hinkelman, their chief restructuring officer, signed the petitions. Judge Stacey G. Jernigan presides over the cases. Elizabeth Nicolle Boydston, Esq., Kristian W. Gluck, Esq., John N. Schwartz, Esq., Timothy S. Springer, Esq., and Louis R. Strubeck, Jr., Esq., at Norton Rose Fulbright US LLP serve as the Debtors' bankruptcy counsel. The Debtors tapped DLA Piper LLP (US) as special counsel; FTI Consulting, Inc., as chief restructuring officer; Houlihan Lokey, Inc., as investment banker; and Epiq Systems as claims and noticing agent. On May 1, 2017, a nine-member official unsecured creditors committee was formed in the case. The committee tapped Akin Gump Strauss Hauer & Feld LLP as counsel. The Committee retained CohnReznick as financial advisors. On June 19, 2017, the U.S. Trustee appointed an official committee of equity security holders. The equity committee retained Winstead P.C. as legal counsel. Daniel T. McMurray has been named as Patient Care Ombudsman in the Debtors' cases. The PCO tapped Focus Management Group USA, Inc., as medical operations advisor. ADPT DFW: Substantive Consolidation Under Plan Best Utilizes Assets ------------------------------------------------------------------- On Sept. 26-27, 2017, the U.S. Bankruptcy Court for the Northern District of Texas held a hearing to consider confirmation of Debtors ADPT DFW Holdings LLC, et al.'s Third Amended Joint Plan of Reorganization, as modified by certain Plan Supplements and modifications in the record. After hearing numerous witnesses and considering hundreds of documents submitted into evidence, the court decided to confirm the Plan. The Court's Memorandum Opinion pertains solely to the substantive consolidation proposed in the Plan, to which an objection was lodged and overruled. As a result of the Debtors' integrated and interdependent operations, substantial intercompany obligations and guaranties, common officers and directors, common control and decision-making, reliance on a consolidated cash management system, and dissemination of principally consolidated financial information to third parties, the Debtors operated, and creditors dealt with the Debtors, as a single, integrated economic unit. In view of the foregoing -- and particularly since the causes of action that will produce most of the recovery to stakeholders have been determined to be owned by all Debtor estates -- the court approves substantive consolidation. Substantive consolidation under the Plan will best utilize the Debtors' assets and potential of all of the Debtors to pay to the creditors of each entity the distributions to which they are entitled. The court observed that the debtors were managed on an integrated basis making it reasonable and administratively convenient to propose a joint plan and that the joint plan has been accepted by numerous other impaired accepting classes, thereby satisfying the requirement of section 1129(a)(10). The court, having approved the substantive consolidation proposed by the Debtors, concludes that it was appropriate for the Debtors to have tabulated ballots on a consolidated basis. The court makes no comment on whether it would have been proper in the absence of substantive consolidation. A full-text copy of the Court's Memorandum Opinion dated Sept. 29, 2017, is available at: http://bankrupt.com/misc/txnb17-31432-11-824.pdf About ADPT DFW Holdings LLC Adeptus Health LLC -- http://www.adpt.com/-- through its subsidiaries, owns and operates hospitals and free standing emergency rooms in partnership with various healthcare providers. Adeptus Health Inc. is a holding company whose sole material asset is a controlling equity interest in Adeptus Health LLC. Lewisville, Texas-based ADPT DFW Holdings LLC and its affiliates, including Adeptus Health, Inc., and Adeptus Health LLC, each filed Chapter 11 bankruptcy petitions (Bankr. N.D. Tex. Lead Case No. 17-31432) on April 19, 2017, listing $798.7 million in total assets and $453.48 million in total debt as of Sept. 30, 2016. Andrew Hinkelman, their chief restructuring officer, signed the petitions. Judge Stacey G. Jernigan presides over the cases. Elizabeth Nicolle Boydston, Esq., Kristian W. Gluck, Esq., John N. Schwartz, Esq., Timothy S. Springer, Esq., and Louis R. Strubeck, Jr., Esq., at Norton Rose Fulbright US LLP serve as the Debtors' bankruptcy counsel. The Debtors tapped DLA Piper LLP (US) as special counsel; FTI Consulting, Inc., as chief restructuring officer; Houlihan Lokey, Inc., as investment banker; and Epiq Systems as claims and noticing agent. On May 1, 2017, a nine-member official unsecured creditors committee was formed in the case. The committee tapped Akin Gump Strauss Hauer & Feld LLP as counsel. The Committee retained CohnReznick as financial advisors. On June 19, 2017, the U.S. Trustee appointed an official committee of equity security holders. The equity committee hired Winstead P.C. as legal counsel. Daniel T. McMurray has been named as Patient Care Ombudsman in the Debtors' cases. The PCO tapped Focus Management Group USA, Inc., as medical operations advisor. ADVANTAGE ENERGY: Loretta Cross Agrees to Serve as Ch. 11 Trustee ----------------------------------------------------------------- In an affidavit, Loretta R. Cross, Managing Director at Stout Risius Ross, LLC, have agreed to serve as Chapter 11 Trustee in the case of Advantage Energy Joint Venture on the following terms: The compensation to be paid as follows to her employer, Stout Risius Ross: * 25% on any amount disbursed by the trustee up to $5,000; * 10% on any amount disbursed by the trustee between $5,000.01 and $50,000; * 15% on any amount disbursed by the trustee between $50,000.01 and $1,000,000, and * 3% on any amount disbursed by the trustee in excess of $1,000,000.01. Ms. Cross asserts that neither she nor Stout and its staff, represent any interest adverse to Advantage Energy Joint Venture. Additionally, they are disinterested persons, as defined by 11 U.S.C. section 101(1-4). She has also made an investigation of disinterestedness prior to submitting her Affidavit, which includes firm-wide conflicts check as to the Debtor, and its secured creditors, unsecured creditors, and equity holders. A full-text copy of Cross' Affidavit is available at: http://bankrupt.com/misc/txsb17-34469-98.pdf Consultants International Services LP and Meredith Interests Consulting LP filed an involuntary Chapter 11 petition against Advantage Energy Joint Venture on July 26, 2017 (Bankr. S.D. Tex. Case No. 17-34469). The case is assigned to Judge Jeff Bohm. The Petitioners are represented by Gregg K. Saxe, Esq., in Houston, Texas. A full-text copy of the petition is available for free at: http://bankrupt.com/misc/txsb17-34469.pdf AGAIA INC: Case Summary & 20 Largest Unsecured Creditors -------------------------------------------------------- Debtor: Agaia, Inc. PO Box 4901 Fort Lauderdale, FL 33338 Type of Business: Agaia, Inc. is a maker of natural, non-toxic, green cleaning products for the commercial laundry, industrial cleaning, janitorial & housekeeping, food processing, marine and bunker gear cleaning industries. The Company's products are distributed in North and South America, Asia, Australia, South Africa, Europe, the Caribbean and the Middle East. Web site: http://www.agaiainc.com/and http://www.evolvecleans.com/ Case No.: 17-22132 Chapter 11 Petition Date: October 4, 2017 Court: United States Bankruptcy Court Southern District of Florida (Fort Lauderdale) Judge: Hon. John K Olson Debtor's Counsel: Michael D. Seese, Esq. SEESE, P.A. 101 NE 3rd Avenue, Suite 410 Fort Lauderdale, FL 33301 Tel: 954-745-5897 E-mail: mseese@seeselaw.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Chris Shell, president. The Debtor's list of 20 largest unsecured creditors is available for free at http://bankrupt.com/misc/flsb17-22132.pdf A full-text copy of the petition is available for free at: http://bankrupt.com/misc/flsb17-22132_petition.pdf AGCO CORP: S&P Lowers $300MM Senior Unsecured Notes Rating to BB+ ----------------------------------------------------------------- S&P Global Ratings said that it has reviewed its unsecured issue-level rating for AGCO Corp. that was labeled as "under criteria observation" (UCO) after publishing its revised issue ratings criteria on Sept. 21, 2017. With S&P' criteria review complete, it is removing the UCO designation from this rating. S&P said, "We are lowering our issue-level rating on AGCO Corp.'s $300 million senior unsecured notes due 2021 to 'BB+' from 'BBB-'. This rating action stems solely from the application of our revised issue rating criteria and does not reflect any change in our assessment of the corporate credit rating on AGCO Corp. "The new criteria includes a revised approach to indicate subordination risk. Because the debt at AGCO's operating subsidiaries (priority debt) represents more than 50% of the company's consolidated debt, we now rate AGCO's unsecured debt 'BB+', which is one notch below our corporate credit rating on the company, to more clearly reflect the subordination." RATINGS LIST AGCO Corp. Corporate Credit Rating BBB-/Stable/-- Issue Rating Lowered Due To Revised Issue Rating Criteria To From AGCO Corp. Senior Unsecured $300M Notes Due 2021 BB+ BBB- ALABAMA PARTNERS: Has Court's Nod to Use Cash Collateral -------------------------------------------------------- The Hon. Tamara O. Mitchell of the U.S. Bankruptcy Court for the Northern District of Alabama has granted permission to Alabama Partners, LLC, and its debtor affiliates to use cash collateral, subject to the amended budget. The Court orders the Debtors to comply with the terms of the motion as set forth therein and to take necessary and appropriate steps to effectuate the purposes of the court order. A copy of the Order is available at: http://bankrupt.com/misc/alnb17-03469-118.pdf As reported by the Troubled Company Reporter on Aug. 25, 2017, the Debtors sought court authorization to use of cash collateral to pay their prepetition payroll and employee expense reimbursement obligations in accordance with the Wage Motion and in accordance with its Interim Budget. That proposed Budget provides total monthly expenses of approximately $130,098 for BamaChex, Inc./Alabama Partners LLC; $52,619 for PG County Pizza LLC/PG County Ventures LLC; and $ 37,552 for Maryland Pizza Inc./Maryland LC Ventures LLC. About Alabama Partners Alabama Partners, LLC, is a holding company for the operating entity BamaChex, Inc. These Debtors operate a series of Rally' hamburger restaurants in the Birmingham, Alabama metropolitan area. Maryland LC Ventures, LLC, is a holding company for the operating entity Maryland Pizza, LLC; and PG County Partners, LLC is the holding company for the operating entity PG County Pizza, Inc. Each of the holding companies owns four Little Ceasars Pizza franchises in Maryland. Each of the six debtors are jointly owned and controlled by the same equity partners or shareholders. The Debtors are a series of related and affiliated companies that operate in the fast food restaurant business. BamaChex, Inc., previously sought bankruptcy protection (Bankr. N.D. Ala. Case No. 11-04020) on Aug. 11, 2011. Alabama Partners, LLC; BamaChex, Inc.; Maryland LC Ventures, LLC; Maryland Pizza, Inc.; PG County Partners, LLC; and PG County Pizza, Inc. each filed their respective Chapter 11 petitions (Bankr. N.D. Ala. Case Nos. 17-03469, 17-03471, 17-03472, 17-03473, 17-03474, and 17-03475, respectively) on Aug. 11, 2017. The petitions were signed by Mark Williams, chief operating officer. At the time of filing, the Debtors estimated assets and liabilities between $1 million and $10 million. The Debtors are represented by Scott R. Williams, Esq., Robert H. Adams, Esq., and Frederick D. Clarke, Esq., at Rumberger, Kirk & Caldwell, P.C. ALL STAR MEDICAL: May Continue Using Cash Collateral ---------------------------------------------------- The Hon. Clifton R. Jessup, Jr., of the U.S. Bankruptcy Court for the Northern District of Alabama has granted All Star Medical, LLC, permission to continue the use of cash collateral to Oct. 2, 2017. A hearing on the cash collateral use is re-scheduled for Oct. 2, 2017, at 1:30 p.m. A copy of the Order is available at: http://bankrupt.com/misc/alnb17-82507-43.pdf About All Star Medical All Star Medical, LLC -- http://www.allstarmedical.com/-- is a locally owned and operated medical equipment company located in Albertville, Cullman, Huntsville and Madison, Alabama. It is a durable medical equipment company. It provides home medical equipment and medical supplies like respiratory equipment, wheelchairs, hospital beds and medical supplies to patients throughout north Alabama. It has offices in Albertville, Cullman, Huntsville, and Madison. Its main office is located at 2407 South Memorial Parkway, Huntsville, Alabama 35805. All Star Medical filed a Chapter 11 bankruptcy petition (Bankr. N.D. Ala. Case No. 17-82507) on Aug. 24, 2017, disclosing $1.37 million in total assets and $2.12 million in total liabilities. The petition was signed by Philip Garmon, owner. The Hon. Clifton R. Jessup Jr. presides over the case. Kevin D. Heard, Esq., at Heard, Ary & Dauro, LLC, serves as the Debtor's bankruptcy counsel. ALLIANCE ONE: Reaffirms Guidance for Fiscal 2018 ------------------------------------------------ J. Pieter Sikkel, president and chief executive officer of Alliance One International, Inc., and Joel L. Thomas, the Company's executive vice president - chief financial officer, presented at the Deutsche Bank Leveraged Finance Conference on Oct. 3, 2017 in Scottsdale, Arizona. Mr. Sikkel and Mr. Thomas were scheduled to speak beginning at 12:20 p.m. Eastern Daylight Time. During the course of the Conference, the Company reaffirmed its prior guidance of its anticipated revenues and adjusted EBITDA for the fiscal year ending March 31, 2018. The written materials used to accompany the Company's presentation at the Conference will be posted to the Company's website, www.aointl.com, under the "Investor Relations" tab, prior to the commencement of the presentation. About Alliance One Morrisville, N.C.-based Alliance One International Inc. is principally engaged in purchasing, processing, storing, and selling leaf tobacco. The Company purchases tobacco primarily in the United States, Africa, Europe, South America and Asia for sale to customers primarily in the United States, Europe and Asia. Alliance One reported a net loss attributable to the Company of $62.92 million on $1.71 billion of sales and other operating revenues for the year ended March 31, 2017, compared to net income attributable to the Company of $65.53 million on $1.90 billion of sales and other operating revenues for the year ended March 31, 2016. As of June 30, 2017, Alliance One had $1.97 billion in total assets, $1.79 billion in total liabilities and $178 million in total equity. * * * In September 2016, Moody's Investors Service upgraded Alliance One's Corporate Family Rating (CFR) to 'Caa1' from 'Caa2' and Probability of Default Rating to 'Caa1-PD' from 'Caa2-PD'. The Corporate Family Rating upgrade to Caa1 reflects Moody's somewhat diminished concerns about Alliance One's liquidity. In June 2017, S&P Global Ratings affirmed its 'CCC+' corporate credit rating on Alliance One. The rating outlook is negative. The rating affirmation reflects S&P's forecast that the Company's credit metrics will show modest improvement but remain very weak over the next year, including adjusted debt to EBITDA in the mid-9x area (compared to over 12x currently) and EBITDA to cash interest coverage below 1.5x. Despite S&P's forecast for modest improvement, the company has missed its estimates over the last several years. ALTA MESA: Expects to Close Silver Run Transaction by December -------------------------------------------------------------- Alta Mesa Holdings, LP, provided information regarding the proposed transaction with, among others, Silver Run Acquisition Corporation II in a presentation to certain investors and analysts on Oct. 3, 2017. Silver Run II has agreed to merge with Alta Mesa and Kingfisher Midstream, creating a world class energy company with a high-quality, integrated, and concentrated asset base in the core of the STACK oil play. Anticipated closing of transaction is in the fourth quater of 2017 and the implied firm fair value is $3.8 billion at $10 per share. Anticipated Transaction Timeline Late-September 2017 - File preliminary proxy statement/ marketing materials with the SEC October 2017 - Transaction Marketing Late-November 2017 - Definitive Proxy mailed to shareholders of record December 2017 - Anticipated closing A copy of the investor presentation is available for free at: https://is.gd/o2UfRM About Alta Mesa Headquartered in Houston, Texas, Alta Mesa Holdings, LP -- http://www.altamesa.net/-- is a privately-held, independent exploration and production company primarily engaged in the acquisition, exploration, development and production of oil, natural gas and natural gas liquids within the United States. The Company has transitioned its focus from its diversified asset base composed of a portfolio of conventional assets to an oil and liquids-rich resource play in the eastern portion of the Anadarko Basin in Oklahoma (the "STACK") with an extensive inventory of drilling opportunities. Alta Mesa reported a net loss of $167.9 million for the year ended Dec. 31, 2016, and a net loss of $131.8 million for the year ended Dec. 31, 2015. As of June 30, 2017, Alta Mesa had $957 million in total assets, $915.3 million in total liabilities and $41.70 million in total partners' capital. ANGELICA CORP: 3rd Amended Plan Declared Effective on Sept. 30 -------------------------------------------------------------- The Third Amended Joint Chapter 11 Plan of RFID Corporation, et al., fka Angelica Corporation, has been declared effective as of September 30, 2017, signaling the Debtors' emergence from bankruptcy protection. Judge James Garrity confirmed the Plan on Aug. 31, 2017. All requests for payment of administrative expense claims must be served on the Debtors no later than Oct. 26, 2017. As previously cited by BankruptcyData.com, substantially all of Angelica's assets were sold during the Company's Chapter 11 proceeding, with sale proceedings used to satisfy various claims. About Angelica Corp. Headquartered in Alpharetta, Georgia, Angelica Corp. is a national provider of medical laundry and linen management services, supplying approximately 3,800 healthcare providers in 25 states, including approximately 850 hospitals, 350 long-term care facilities, and 2,600 outpatient medical practices. Angelica provides its laundry and linen management services through a network of over 30 laundry plants and depots located across the nation and a fleet of over 220 delivery vehicles. It currently employs approximately 3,900 employees, roughly 69% of whom are unionized. Angelica Corp., formerly known as Angelica, Angelica Healthcare, and Angelica Image Apparel, and four of its affiliates sought Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 17-10870) on April 3, 2017. The petitions were signed by John Makuch, interim chief financial officer. The cases are assigned to Judge James L. Garrity Jr. Angelica disclosed assets at $208 million and liabilities at $216.8 million as of Dec. 24, 2016. Angelica Corp is now known as RFID Corporation. The Debtors tapped Weil, Gotshal & Magnes LLP, as bankruptcy counsel, and Grant Thornton LLP, as auditor and tax advisor. An official committee of unsecured creditors has been appointed in the Chapter 11 cases. The committee hired Cole Schotz, PC, as bankruptcy counsel, and FTI Consulting, Inc., as financial advisor. ANTHONY TSIKOURIS: Sale of Hobart Property for $425K Approved ------------------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of Indiana authorized Anthony Tsikouris' sale of commercial real property located at 3300 East 84th Place, Hobart, Indiana, to McDermott Properties, LLC for $425,000. A hearing on the Motion and any Objections thereto was held on Sept. 29, 2017, at 10:00 a.m. The sale is free and clear of liens, with all valid liens to attach to the proceeds. From the proceeds of the sale, the Debtor is authorized to pay the following: a. Closing costs, title insurance, recording fees etc.; b. Real estate taxes to Lake County Treasurer and Merrillville Conservancy District; c. Realtor fees to David Lasser, Commercial In Sites, and costs incurred; d. Indiana Dept. Of Revenue lien claims listed on the title policy plus interest accrued since the date of the filing of the bankruptcy; e. The Internal Revenue Service lien claims listed on the title policy as items "o" through "r" will be paid at closing plus post-petition interest accrued from the date of the filing of the bankruptcy until receipt of payment by the IRS on its allowed secured claim. The following liens listed on the title policy will not be paid but to the extent the liens are valid will attach to the proceeds to be paid upon further order of this Court: Federal income Tax Lien Recorded March 10, 2015 as Document No. 2015 13510 (items on the title policy); and Federal Income Tax Lien Recorded April 6, 2015 as Document No. 2015 19919; f. Attorney fees to Lori D. Fisher not to exceed $5,000; and g. All remaining funds to Paul R. Chael, Chapter 13 Trustee of the Estate of Diann Tsikouris case number 15-23471 to be held in trust pending further order from the Court regarding payment of additional liens and division of proceeds between the Debtor and the Chapter 13 Bankruptcy Estate of Diann Tsikouris. The Order will become effective immediately upon entry and that the 14-day stay of the Order Pursuant to B.R. 4001(a) is waived. About Anthony Tsikouris Anthony Tsikouris is an individual who is currently employed by Tack Building, LLC. He is an employee of the business and is paid approximately $6,000 a month gross. Mr. Tsikouris has no and never has had an interest in the business. The business is owned by entirely by his wife since it was established. Additionally, Mr. Tsikouris owns commercial real estate located at 3300 80th Place, Hobart, Indiana, with his spouse, which leases 3 units that generate net monthly income to Mr. Tsikouris of $1,800. Anthony Tsikouris filed for Chapter 13 protection (Bankr. N.D. Ind. Case No. 15-20208). The Debtor originally filed a Chapter 13 Plan with his spouse, Diann Tsikouris on Feb. 4, 2015 under Case No. 15-20208. On Nov. 3, 2015, the Debtor voluntarily sever his case from his wife's so that she could remain in Chapter 13 which the Court granted on Nov. 5, 2015. He filed a motion to convert to a Chapter 11, which was granted March 10, 2016. The Court assigned a new case number to Diann Tsikouris, 15-23471 which is still pending before the Court. On March 25, 2017, the Court retained David Lasser as Broker. APPVION INC: Bankruptcy Court Approves Ch.11 First Day Motions -------------------------------------------------------------- Appvion, Inc., on Oct. 3, 2017, disclosed that it has received approval from the United States Bankruptcy Court for the District of Delaware of all of the first day motions related to its Chapter 11 filing. Collectively, the orders issued by the Bankruptcy Court will help ensure that the Company continues operating its business in the ordinary course during its restructuring process. "We remain focused on operating our business as usual and serving our customers' needs as we continue constructive discussions with our lenders on an expedited restructuring and emergence," said Kevin Gilligan, Chief Executive Officer of Appvion. "The approval of our first day motions transitions us smoothly into our restructuring process, from which we expect to emerge with a sustainable capital structure, well positioned to compete, and primed to further invest in the innovation that has made Appvion a market leader in coated paper." Appvion received approval to access $65 million of the $85 million of new debtor-in-possession ("DIP") financing on an interim basis. This DIP financing, combined with cash generated by the Company, will support ongoing operations during the process. The Company also received approval to, among other things, pay employee wages and benefits and honor customer programs. Appvion intends to pay vendors in the ordinary course for goods and services provided after the filing date and expects production and delivery of products to customers to continue uninterrupted. As previously announced, on October 1, 2017, Appvion and certain of its subsidiaries filed voluntary Chapter 11 petitions in the Bankruptcy Court for the District of Delaware to facilitate a balance sheet restructuring and better position the business for long-term growth and success. For more information about Appvion's restructuring, including access to Bankruptcy Court documents, please visit https://cases.primeclerk.com/appvion, contact the Company's noticing and claims agent at (866) 315-0467 (for toll-free domestic calls) and (929) 342-0756 (for tolled international calls), or email appvioninfo@primeclerk.com. DLA Piper is serving as legal counsel to Appvion, Guggenheim is serving as the Company's investment banker, and AlixPartners is serving as the Company's restructuring advisor. About Appvion, Inc. Appvion, Inc. -- http://www.appvion.com/-- produces thermal, carbonless, security, inkjet, digital specialty, and colored papers. The Company is the largest manufacturer of direct thermal paper in North America. Headquartered in Appleton, Wisconsin, Appvion operates coating and converting plants there and in West Carrollton, Ohio and a pulp and paper mill in Roaring Spring, Pennsylvania. The Company employs approximately 1,400 people and is 100% employee-owned. On Oct. 1, 2017, Appvion, Inc. and 5 affiliated debtors each filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code (Bankr. D. Del. Lead Case No. 17-12082). The cases are pending before the Honorable Kevin J. Carey, and the Debtors have requested joint administration of the cases under Case No. 17-12082. Appvion Inc. disclosed total assets of $413,430,904 and total liabilities of $714,758,194 as of Aug. 31, 2017. DLA Piper is serving as legal counsel to Appvion, Guggenheim Securities LLC is serving as the Company's investment banker, and Alan Holtz of AlixPartners is serving as the Company's Chief Restructuring Officer. Prime Clerk LLC is the claims and noticing agent. APPVION INC: Oct. 11 Meeting Set to Form Creditors' Panel --------------------------------------------------------- Andy Vara, Acting United States Trustee for Region 6, will hold an organizational meeting on Oct. 11, 2017, at 1:00 a.m. in the bankruptcy case of Appvion, Inc. The meeting will be held at: Delaware State Bar Association 405 King Street, 2nd floor Wilmington, DE 19801 The sole purpose of the meeting will be to form a committee or committees of unsecured creditors in the Debtors' case. The organizational meeting is not the meeting of creditors pursuant to Section 341 of the Bankruptcy Code. A representative of the Debtor, however, may attend the Organizational Meeting, and provide background information regarding the bankruptcy cases. To increase participation in the Chapter 11 proceeding, Section 1102 of the Bankruptcy Code requires that the United States Trustee appoint a committee of unsecured creditors as soon as practicable. The Committee ordinarily consists of the persons, willing to serve, that hold the seven largest unsecured claims against the debtor of the kinds represented on the committee. Section 1103 of the Bankruptcy Code provides that the Committee may consult with the debtor, investigate the debtor and its business operations and participate in the formulation of a plan of reorganization. The Committee may also perform other services as are in the interests of the unsecured creditors whom it represents. About Appvion, Inc. Appvion, Inc. -- http://www.appvion.com/-- produces thermal, carbonless, security, inkjet, digital specialty, and colored papers. The Company is the largest manufacturer of direct thermal paper in North America. Headquartered in Appleton, Wisconsin, Appvion operates coating and converting plants there and in West Carrollton, Ohio and a pulp and paper mill in Roaring Spring, Pennsylvania. The Company employs approximately 1,400 people and is 100% employee-owned. On Oct. 1, 2017, Appvion, Inc. and 5 affiliated debtors each filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code (Bankr. D. Del. Lead Case No. 17-12082). The cases are pending before the Honorable Kevin J. Carey, and the Debtors have requested joint administration of the cases under Case No. 17-12082. Appvion Inc. disclosed total assets of $413,430,904 and total liabilities of $714,758,194 as of Aug. 31, 2017. DLA Piper is serving as legal counsel to Appvion, Guggenheim Securities LLC is serving as the Company's investment banker, and Alan Holtz of AlixPartners is serving as the Company's Chief Restructuring Officer. Prime Clerk LLC is the claims and noticing agent. ATHLETIC COMMUNITY: Wants to Use Cash Collateral Through March 2018 ------------------------------------------------------------------- Athletic Community Team, LLC, d/b/a Jersey Shore Arena, seeks authorization from the U.S. Bankruptcy Court for the District of New Jersey to use cash collateral in order to continue its business. A projected Budget through and including the period ending March 31, 2018, provides total operating expenses of $186,825 per month. As of the Petition Date, the only creditor asserting a lien against the operating assets of the Debtor is Jersey Shore Ice Arena, LLC, via an assignment from The Bancorp Bank. Jersey Shore asserts a lien in the approximate amount of $13,969,000. To the extent of any diminution in its prepetition cash collateral, the Debtor proposes to grant Jersey Shore replacement liens on all of its postpetition assets and afford protection to Jersey Shore under Section 507(b) of the Bankruptcy Code. The proposed replacement liens on postpetition assets are to attach in the same order of priority as existed prior to the Petition Date. Additionally, the Debtor will make periodic payments to Jersey Shore in the amount of $2,000 per month. A full-text copy of the Debtor's Motion, dated Sept. 28, 2017, is available at https://is.gd/XrpUmC About Athletic Community Team Athletic Community Team, LLC, d/b/a Jersey Shore Arena -- http://jerseyshorearena.com/-- operates an ice skating rink in Wall Township, New Jersey. The 15-acre Arena houses 3 NHL size ice rinks, the Penalty Box Cafe, The Jersey Shore Hockey Shop for all hockey and figure skating needs, Next Level for all off ice training needs, the Penalty Box restaurant offering breakfast, lunch and dinner. The Jersey Shore Arena offers Learn To Skate and Learn To Play Hockey Programs, Youth and Adult Leagues, Figure Skating Freestyle Sessions, Private Hockey and Figure Skating Lessons, Clinics and Camps. It also accepts reservations for birthday parties, private parties and group packages. ACB Receivables Management, Inc., an affiliate, sought bankruptcy protection (Bankr. D.N.J. Case No. 16-27343) on Sept. 9, 2016. Athletic Community Team filed a Chapter 11 petition (Bankr. D.N.J. Case No. 17-29399) on Sept. 26, 2017. The petition was signed by Oleg Shnayderman, managing member of the Debtor. At the time of filing, the Debtor estimated $1 million to $10 million in assets and $10 million to $50 million in liabilities. The case is assigned to Judge Christine M. Gravelle. The Debtor is represented by David A. Ast, Esq. at Ast & Schmidt, P.C. There has been no appointment of creditors' committee, trustee or examiner in the case. AYTU BIOSCIENCE: Files Pro Forma Balance Sheet as of June 30 ------------------------------------------------------------ Aytu BioScience, Inc., previously entered into a securities purchase agreement with various investors pursuant to which the Company sold Class A and Class B equity units for gross proceeds of approximately $11.8 million. The offering closed on Aug. 15, 2017. On Oct. 3, 2017, the Company provided the Securities and Exchange Commission a proforma balance sheet as of June 30, 2017, giving effect to the closing and receipt by the Company of the gross proceeds of the offering. This is the proforma balance sheet as if the $11.8 million financing had happened on June 30, 2017. As of June 30, 2017, Aytu Bioscience's pro forma combined balance sheet showed $25.63 million in total assets, $14.32 million in total liabilities and $11.31 million in total stockholders' equity. A full-text copy of the regulatory filing is available at: https://is.gd/nOBIhd About Aytu BioScience Aytu BioScience, Inc. (OTCMKTS:AYTU) -- http://www.aytubio.com/-- is a commercial-stage specialty healthcare company concentrating on developing and commercializing products with an initial focus on urological diseases and conditions. Aytu is currently focused on addressing significant medical needs in the areas of urological cancers, hypogonadism, urinary tract infections, male infertility, and sexual dysfunction. Aytu BioScience reported a net loss of $22.50 million for the year ended June 30, 2017, a net loss of $28.18 million for the year ended June 30, 2016, and a net loss of $7.72 million for the year ended June 30, 2015. As of June 30, 2017, Aytu BioScience had $14.99 million in total assets, $10.99 million in total liabilities, and $3.99 million in total stockholders' equity. B & B METALS: Unsecureds to Recoup 21.681% in 10 Years ------------------------------------------------------ B & B Metals, Inc., filed with the U.S. Bankruptcy Court for the Central District of Illinois a disclosure statement dated Sept. 20, 2017, referring to the Debtor's plan of reorganization. Class 2 General Unsecured Claims are impaired by the Plan. Holders will receive a quarterly payment of $90.16 for the first five years, then that amount will be increased to $490.16 for the remaining five years, with interest rate of 6.25%. Payments will start in 2018 and will end on 2028. The holders will recover 21.681%. Payments and distributions under the Plan will be funded by the following: Sale of personal assets of equity holders, purchase and sale of scrap, sale of inventory scrap. A copy of the Disclosure Statement is available at: http://bankrupt.com/misc/ilcb17-80859-53.pdf About B & B Metals B & B Metals, Inc., sought Chapter 11 protection (Bankr. C.D. Ill. Case No. 17-80859) on June 9, 2017. The petition was signed by Larry Beam, President. The Debtor estimated assets of less than $100,000 and liabilities of less than $500,000. The Debtor tapped Justin Raver, Esq., at Barash & Everett, LLC, as counsel. Since 2012, the Debtor has been in the business of scrapping semi trailers, selling various parts including the tires, rims, and suspension equipment as well as refrigeration units and then scrapping the remaining metals and selling to regional scrap yards. B N EMPIRE: Hires Johnson Pope as Counsel ----------------------------------------- B N Empire, LLC seeks authorization from the U.S. Bankruptcy Court for the Middle District of Florida to employ Johnson Pope Bokor Ruppel & Burns, LLP as counsel, nunc pro tunc to September 5, 2017. The Debtor requires Johnson Pope to: a. give the Debtor legal advice with respect to its duties and obligations as Debtor in Possession; b. take necessary steps to analyze and pursue any avoidance actions, if in the best interest of the estate; c. prepare on behalf of the Debtor the necessary motions, notices, pleadings, petitions, answers, orders, reports and other legal papers required in this Chapter 11 case; d. assist the Debtor in taking all legally appropriate steps to effectuate compliance with the Bankruptcy Code; e. perform other legal services for the Debtor which may be necessary. Johnson Pope lawyers who will work on the Debtor's case and their hourly rates are: Alberto F. Gomez, Jr., shareholder $350 Angelina Lim, Partner $325 An affiliate of the Debtor, Cloud Contracts, Inc., paid a $33,500 pre-petition retainer within one year of the filing date on behalf of the Debtor. Of the amount received, $16,110 was utilized for representation of the Debtor in a State Court foreclosure case and potential workout settlement efforts. Additionally, from the amount received, the Debtor's counsel paid the Court's filing fee of $1,717 on behalf of the Debtor. As of September 5, 2017, the date of commencement of the Debtor's chapter 11 case, Johnson Pope held approximately $15,673 in its trust account to be applied to post-petition services rendered and costs incurred. Johnson Pope will also be reimbursed for reasonable out-of-pocket expenses incurred. Alberto F. Gomez, Jr., Esq., shareholder of Johnson Pope Bokor Ruppel & Burns, 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. Johnson Pope may be reached at: Alberto F. Gomez, Jr., Esq. Johnson Pope Bokor Ruppel & Burns, LLP 401 E. Jackson Street, Ste. 3100 (33602) P.O. Box 1100 Tampa, FL 33601-1100 Tel: 813-225-2500 Fax: 813-223-7118 Email: Al@jpfirm.com About B N Empire, LLC B N Empire, LLC filed a Chapter 11 bankruptcy petition (Bankr. M.D. Fla. Case No. 17-07841) on September 5, 2017. Johnson Pope Bokor Ruppel & Burns, LLP represents the Debtor as counsel. In its petition, the Debtor estimated $1 million to $10 million in assets and $1 million to $10 million in liabilities. The petition was signed by Rajesh Bahl, its manager. BEAR FIGUEROA: Proposes $2.43 Million Refinancing Loan ------------------------------------------------------ Bear Figueroa LLC seeks permission from the U.S. Bankruptcy Court for the Central District of California to enter into negotiations to refinance the loans secured by existing liens on its property located at 10520 South Figueroa Boulevard, Los Angeles, California 90003. The Debtor says that its managing members Denise Johnson and Gladney Johnson have exhausted their options in seeking a refinancing loan that will pay off all their creditors. They found that Bear Figueroa LLC's income does not qualify for any unsecured loans, and that their only option was a secured loan. The proposed refinancing loan with Pacific Enterprise Bank is not only secured by the Property but also the equity in other properties individually owned by Denise Johnson outside of this bankruptcy. The Debtor seeks approval of a refinancing loan secured by the Property. The total loan amount is $2,425,000. The Debtor says that the liens on the Property are in favor of Evergreen Advantage LLC, and the Los Angeles County Tax Collector, will be paid in full. The Debtor anticipates filing a proposed Chapter 11 plan which will include this post-petition refinancing if approved. In exchange for payment within the next 30 days, the secured creditors, Evergreen Advantage and the Los Angeles County Tax Collector will release their liens. The current notice of interest the Debtor is taking under serious consideration has been provided by Pacific Enterprise Bank with these terms: 1) Letter of Interest to Lend - Pacific Enterprise Bank a) The loan will be for a total of $2,425,000 with a first priority deed of trust in favor of Pacific Enterprise Bank at the interest rate of WSJ Prime Rate +3.00%, floating and adjusting daily; secured by an insured mortgage on the real property located at 10520 Figueroa Street, Los Angeles, California 90003, and 10601 Crenshaw Boulevard, Inglewood, California 90303; b) the terms require that Bear Figueroa form a new entity and the property will be transferred from the Debtor to the new entity as a separate limited liability corporation. This new entity will be the main borrower secured by the Bear Figueroa's property; c) Denise Johnson is the guarantor and formed the new entity, Salt Fish, Inc. This refinancing loan will be using Bear Figueroa's collateral. Robert Florez is the majority shareholder and the borrower of the refinancing loan; and d) the loan will be secured by the Debtor's property located at 10520 South Figueroa Boulevard, Los Angeles, California 90003 as well as equity in other properties held personally by Denise Johnson. The refinancing will allow Debtor to pay-off the outstanding amounts owed to Evergreen Advantage and obtain a new loan in the amount of $2,425,000. The Debtor therefore believes that the refinancing is in the best interest of the Estate because all secured creditors will be paid in full. A copy of the Debtor's Motion is available at: http://bankrupt.com/misc/cacb1714249-86.pdf About Bear Figueroa Headquartered in Culver City, California, Bear Figueroa LLC owns a property located at 10520 South Figueroa Boulevard, Los Angeles, California 90003, valued at $2.9 million. For 2016, it recorded gross revenue of $265,000 compared to gross revenue of $250,000 during the prior year. Bear Figueroa filed for Chapter 11 bankruptcy protection (Bankr. C.D. Cal. Case No. 17-14249) on April 6, 2017, listing $2.9 million in total assets and $1.93 million in total liabilities. The petition was signed by Denise Johnson, managing member. Judge Vincent P. Zurzolo presides over the case. Lionel E Giron, Esq., at the Law Offices of Lionel E. Giron, serves as the Debtor's bankruptcy counsel. No creditors' committee has been appointed by the United States Trustee. BERNARD L. MADOFF: Brown Rudnick Secures Major Victory for Sentry ----------------------------------------------------------------- Brown Rudnick secured a crucial victory on behalf of client Kenneth Krys, foreign representative of Fairfield Sentry Limited, the largest Madoff feeder fund, against Farnum Place, LLC, this week, as the United States Supreme Court declined to hear Farnum's final appeal to a 2017 ruling by the Second Circuit Court of Appeals. The Court's decision ends more than five years of litigation in the case, which sprung from the high profile conviction of investor and stockbroker Bernie Madoff in 2009. The result means an additional $100 million or more in recovery for Sentry stakeholders, many of whom had lost big in the fallout of the Madoff scandal. "We're pleased to be able to help Sentry recover approximately $100 million in value that otherwise would have been lost," said partner David Molton, who led Brown Rudnick's representation of Krys. The case is also significant in its implication for future Chapter 15 bankruptcies. In its 2017 ruling, the Second Circuit Court of Appeals confirmed responsibility by Bankruptcy Courts to independently review and if appropriate reject proposed sales of U.S. assets by representatives of foreign main proceedings to the same extent as in domestic bankruptcy proceedings, even if those sales have been previously reviewed and approved by courts in non-US jurisdictions. "Today's outcome brings clarity and predictability to the increasingly important Chapter 15 cross-border insolvency architecture," said Mr. Molton. "[Wed]nesday the courts confirmed that foreign liquidators selling U.S. assets enjoy the same rights that trustees in domestic Chapter 7 and 11 cases have long held, the ability to reject a sale that indisputably is no longer is in the best interests of the estate's stakeholders." Brown Rudnick is widely recognized for its bankruptcy litigation and distressed asset work in the US and worldwide. As a partner, Mr. Molton focuses on complex financial and commercial litigation in federal, state and bankruptcy courts, and represents foreign liquidators, official committees of creditors, unofficial ad hoc committees of creditors and interested parties in financial fraud and mass tort related litigations and bankruptcies in the United States and in foreign jurisdictions. About Brown Rudnick LLP Brown Rudnick, an international law firm with offices in the United States and Europe, represents clients from around the world in high-stakes litigation, international arbitration and complex business transactions. Clients include public and private corporations, multinational Fortune 100 businesses and start-up enterprises. The Firm also represents investors, as well as official and ad hoc creditors' committees in today's largest corporate restructurings, both domestically and abroad. Founded more than 60 years ago, Brown Rudnick has more than 240 lawyers providing advice and services across key areas of the law. Beyond the United States, the Firm regularly serves clients in Europe, the Middle East, North Africa, the Caribbean and Latin America. About Bernard L. Madoff Bernard L. Madoff Investment Securities LLC and Bernard L. Madoff orchestrated the largest Ponzi scheme in history, with losses topping US$50 billion. On Dec. 15, 2008, the Honorable Louis A. Stanton of the U.S. District Court for the Southern District of New York granted the application of the Securities Investor Protection Corporation for a decree adjudicating that the customers of BLMIS are in need of the protection afforded by the Securities Investor Protection Act of 1970. The District Court's Protective Order (i) appointed Irving H. Picard, Esq., as trustee for the liquidation of BLMIS, (ii) appointed Baker & Hostetler LLP as his counsel, and (iii) removed the SIPA Liquidation proceeding to the Bankruptcy Court (Bankr. S.D.N.Y. Adv. Pro. No. 08-01789) (Lifland, J.). Mr. Picard has retained AlixPartners LLP as claims agent. On April 13, 2009, former BLMIS clients filed an involuntary Chapter 7 bankruptcy petition against Bernard Madoff (Bankr. S.D.N.Y. 09-11893). The petitioning creditors -- Blumenthal & Associates Florida General Partnership, Martin Rappaport Charitable Remainder Unitrust, Martin Rappaport, Marc Cherno, and Steven Morganstern -- assert US$64 million in claims against Mr. Madoff based on the balances contained in the last statements they got from BLMIS. On April 14, 2009, Grant Thornton UK LLP as receiver placed Madoff Securities International Limited in London under bankruptcy protection pursuant to Chapter 15 of the U.S. Bankruptcy Code (Bankr. S.D. Fla. 09-16751). The Chapter 15 case was later transferred to Manhattan. In June 2009, Judge Lifland approved the consolidation of the Madoff SIPA proceedings and the bankruptcy case. Judge Denny Chin of the U.S. District Court for the Southern District of New York on June 29, 2009, sentenced Mr. Madoff to 150 years of life imprisonment for defrauding investors in United States v. Madoff, No. 09-CR-213 (S.D.N.Y.). From recoveries in lawsuits coupled with money advanced by SIPC, Mr. Picard has commenced distributions to victims. As of Aug. 25, 2017, the SIPA Trustee has recovered, from pre-litigation and other settlements, nearly $12.029 billion -- more than 66% of the currently estimated principal amount lost in the Ponzi scheme by those who filed claims. Following the eight distribution of $252 million on Feb. 2, 2017, the Trustee has made total distributions of $9.725 billion, with 1,336 BLMIS accounts fully satisfied. The 1,336 fully satisfied accounts represent nearly 60% of accounts with allowed claims. BILL BARRETT: Updates 2017 Operating Guidance --------------------------------------------- Bill Barrett Corporation announced an update to its 2017 operating guidance, including higher production and lower lease operating expense and capital expenditures. Driven by a combination of early positive results from its enhanced completion program in the Denver-Julesburg Basin, strong results from a nine well recompletion program in the Uinta Oil Program and the expected timing of well completions during the second half of 2017, the Company is raising its 2017 production guidance range from 6.0-6.5 million barrels of oil equivalent ("MMBoe") to 6.4-6.6 MMBoe. This represents a 4% increase at the mid-point from previously released 2017 production guidance and a level that is approximately 12% higher at the mid-point than pro forma 2016 production sales volumes, excluding asset sales. Third quarter 2017 production sales volume guidance has been increased from a range of 1.55-1.65 MMBoe to approximately 1.75 MMBoe, representing an increase of approximately 9%. The Company is delivering greater drilling and completion efficiencies with respect to its capital program that have partially offset forecasted service cost increases for 2017. As a result, it is now expected that capital expenditures will total $250-$270 million, down from an earlier estimate of $255-$285 million. The Company anticipates that 70-75 wells will be spud in 2017, which is unchanged from the previous forecast despite capital expenditure guidance being reduced by approximately 4% at the mid-point. Third quarter 2017 capital expenditures are expected to total $65-$75 million, which is unchanged from previous guidance. The Company is currently operating two drilling rigs in the DJ Basin and expects to continue to do so for the remainder of 2017. However, this plan is subject to change based on any material movement in crude prices. The Company continues to build on operational efficiencies at the field level and as a result is decreasing its LOE guidance for 2017 from $27-$30 million to $24-$26 million, representing a decrease of 12% at the mid-point. The Company continues to pursue additional cost reducing synergies in an effort to further reduce LOE. Commenting on the updated operating guidance, Chief Executive Officer and President Scot Woodall said, "We have done an excellent job of executing on our operational plan this year and the effort of our team is reflected in our updated guidance. We remain encouraged by the early results of our enhanced completions in the DJ Basin, which combined with faster drilling and completion cycle time allows us to deliver a higher growth profile. We are focused on the items within our control and exhibiting an increased level of operating efficiency to offset inflationary pressure, as evidenced by lower LOE and capital expenditure guidance. We maintain excellent operational flexibility with an anticipated level of planned activity that allows us to deliver a strong growth profile in 2018." Investor Presentation A corporate presentation for October 2017 was posted on Bill Barrett Corporation's Web site at http://www.billbarrettcorp.com/ on Oct. 3, 2017. Members of the Company's management were scheduled to participate in the Deutsche Bank Leveraged Finance Conference in Scottsdale, Arizona on Oct. 3-4, 2017, and will meet with members of the investment community in San Francisco and Los Angeles on Oct. 4 to 5, 2017. About Bill Barrett Denver-based Bill Barrett Corporation -- http://www.billbarrettcorp.com/-- is an independent energy company that develops, acquires and explores for oil and natural gas resources. All of the Company's assets and operations are located in the Rocky Mountain region of the United States. Bill Barrett reported a net loss of $170.4 million on $178.8 million of total operating revenues for the year ended Dec. 31, 2016, compared to a net loss of $487.8 million on $207.9 million of total operating revenues for the year ended Dec. 31, 2015. The Company's balance sheet at June 30, 2017, showed $1.32 billion in total assets, $780.9 million in total liabilities and $542.3 million in total stockholders' equity. * * * As reported by the TCR on April 26, 2017, Moody's Investors Service upgraded Bill Barrett Corporation's Corporate Family Rating (CFR) to 'Caa1' from 'Caa2' and its existing senior unsecured notes' ratings to Caa2 from Caa3. "The upgrade of Bill Barrett's ratings is driven by the reduction of default risk supported by the company's large cash balance and improved debt maturity profile," said Prateek Reddy, Moody's lead analyst. "The company's credit metrics are likely to soften in 2017 because of the roll off of higher priced hedges, but the metrics should strengthen along with production growth in 2018." BLUE BEE: Seeks Permission to Continue Cash Use Until Jan. 20 ------------------------------------------------------------- Blue Bee, Inc., doing business as ANGL, asks the U.S. Bankruptcy Court for the Central District of California for authority to use cash collateral through and including Jan. 20, 2018, to pay the expenses set forth in the budget. A further hearing to consider the continued use of cash collateral will be held on Oct. 19, 2017 at 8:30 a.m. Pursuant to the Fourth Cash Collateral Order, the Debtor's authority to use cash collateral will expire on Oct. 21, 2017. Accordingly, the Debtor seeks the Court's authority to continue using cash collateral in accordance with its operating budget for the 13-week period from Oct. 22, 2017, through and including Jan. 20, 2018. The proposed operating budget provides total estimated cash disbursements of approximately $888,127 during the 13-week period. The Debtor requires the Court's authority to pay all of its normal and ordinary operating expenses (such as payroll, rent, utilities, insurance, and payments to vendors) as they come due in the ordinary course of its business and to purchase new inventory to replenish merchandise that is sold to customers at the Debtor's Operating Retail Stores, which in turn will facilitate the continued operation of the Debtor's business without any disruption and the preservation and maximization of the going-concern value of the Debtor's business and assets. The Debtor believes that the Pacific Bank, Fashblvd., Inc., and the California State Board of Equalization are the only parties that may potentially have a perfected security interest in the Debtor's cash. The Debtor's senior secured lender is Pacific Bank, which is currently owed approximately $1,660,000 under the Small Business Administration Loan. The SBA Loan is secured by a lien against the Malibu Residence owned by the Debtor's principals, Jeff Sunghak Kim and Young Ae Kim. There is currently a sale of the Malibu Residence pending, which is anticipated to close within the next approximately 30 days. It is anticipated that the Bank will receive a payment of approximately $700,000 from the sale of the Malibu Residence, which will then reduce the outstanding balance of the SBA Loan to approximately $960,000. Prior to the Petition Date, the Debtor also obtained a secured loan in the amount of $6,000 from Fashblvd., Inc. Flashblvd asserts a lien against substantially all of the assets of the Debtor. While the California State Board Of Equalization has one active state tax lien. The Debtor believes that the amount owed to SBOE which is secured by the foregoing tax lien is $24,160. The Debtor submits that the value of such Secured Creditors' interests in the Debtor's cash collateral will be adequately protected by a substantial equity cushion. The Debtor explains that as of Oct. 22, 2017 (the beginning date of the proposed new Budget), the Debtor anticipates that it will be holding cash on hand of approximately $110,000, security deposits totaling approximately $53,215, inventory valued at approximately $2,625,000 (at cost), and FF&E with an estimated fair market value of approximately $650,000. As such, the Debtor believes that the aggregate value of its assets as of Oct. 22, 2017 is estimated to be $3,438,215, while that the total amount currently owed to its Secured Creditors is only approximately $1,690,160, which is far in excess of the 20% equity cushion constituting clear adequate protection of Secured Creditors' interest in the cash collateral. Furthermore, the Debtor submits that the value of the Secured Creditors' interest in the cash collateral will be adequately protected by, among other things, the maintenance and continued operation of the Debtor's business. By doing so, the Debtor will be able to, among other things, maximize the value of its inventory and generate as much revenue as possible from the sale of such inventory. In addition to the forms of adequate protection discussed above, the Debtor also proposes to provide its Secured Creditors with replacement liens and security interests against the Debtor's post-petition assets, with such replacement liens to have the same extent, validity, and priority as the prepetition liens held by such Secured Creditors against the Debtor's assets. A full-text copy of the Debtor's Motion, dated Sept. 28, 2017, is available at https://is.gd/E5yVUz About Blue Bee Headquartered near downtown Los Angeles, California in Vernon, California, Blue Bee, Inc., doing business as ANGL, is a retailer doing business under the "ANGL" brand offering stylish and contemporary women's clothing at reasonable prices to its fashion-savvy customers. As of Oct. 19, 2016, Blue Bee owns and operates 21 retail stores located primarily in shopping malls throughout the state of California. Founders Jeff Sunghak Kim and his wife, Young Ae Kim, continue to be actively involved in Blue Bee's business operations as the President and Secretary of the Debtor, respectively. Blue Bee filed a Chapter 11 petition (Bankr. C.D. Cal. Case No. 16-23836) on Oct. 19, 2016. The bankruptcy petition was signed by Jeff Sungkak Kim, s president. The Debtor estimated assets and liabilities at $1 million to $10 million. The case is assigned to Judge Sandra R. Klein. The Debtor is represented by Juliet Y. Oh, Esq., at Levene, Neale, Bender, Yoo & Brill LLP. BMC TRANSPORTATION: Seeks Authorization to Use Cash Collateral -------------------------------------------------------------- BMC Transportation, Inc., seeks authorization from the U.S. Bankruptcy Court for the Western District of Arkansas to use cash collateral for the continued operation of its business. The Debtor proposes to account monthly for the collection and expenditure of the cash collateral via the required monthly operating report pursuant to the regulations of the Office of the U.S. Trustee. Specifically, the Debtor will account for all rents and revenues received and proposes to use the cash collateral in the following manner: (a) Payment of all employee wages and employment taxes; (b) Payment of the ongoing and necessary business expenses which includes but is not limited to gasoline, utilities, wages, maintenance on the trucks, and financing costs; (c) The Debtor will retain in the debtor-in-possession account sufficient monthly revenue to pay keep current the taxes and insurance as required or as due to any governmental agency; and (d) Any money not used will accumulate in a debtor in possession operational account and distributed as directed by a confirmed plan. In the ordinary course of business, the Debtor routinely factors its receivables to maintain a positive cash flow. The use of cash collateral will be free on any prepetition liens placed on accounts of the Debtor by the Internal Revenue Service lien on prepetition receivables or accounts will be dealt with by subsequent motion or in the plan confirmation process. A full-text copy of the Debtor's Motion, dated September 28, 2017, is available at https://is.gd/w2vRut About BMC Transportation BMC Transportation, Inc., a small business debtor as defined in 11 U.S.C. Section 101(51D), is engaged in general freight transportation business. BMC is an Arkansas corporation involved in trucking and trucking brokerage. BMC Transportation filed a Chapter 11 petition (Case No. 17-72111) on Aug. 23, 2017. The petition was signed by William Henson, president. At the time of filing, the Debtor estimated $1 million to $10 million in assets and liabilities. The case is assigned to Judge Ben T. Barry. The Debtor is represented by Carl W. Hopkins, Esq. at Hopkins & Holmes, PLLC. BOSS REAL ESTATE: Hearing on Plan Outline Approval Set for Dec. 6 ----------------------------------------------------------------- The Hon. Brenda Moody Whinery of the U.S. Bankruptcy Court for the District of Arizona has scheduled for Dec. 6, 2017, at 10:30 a.m. a hearing to consider the approval of Boss Real Estate Holdings, LLC's disclosure statement. Objections to the Disclosure Statement must be filed by Nov. 28, 2017. The Court has set Dec. 6, 2017, as the deadline for creditors to file proof of claims. As reported by the Troubled Company Reporter on Sept. 14, 2017, the Debtor filed with the Court a disclosure statement for its Chapter 11 plan of reorganization. Class 6 under the plan consists of all Allowed General Unsecured claims, which will be paid in full in equal payments over the next three years but will not be paid penalties or post-petition interest. About Boss Real Estate Holdings Boss Real Estate Holdings, LLC, based in Gilbert, Arizona, filed a Chapter 11 petition (Bankr. D. Ariz. Case No. 17-03716) on April 10, 2017. The Hon. Brenda Moody Whinery presides over the case. Ronald J. Ellett, Esq., at Ellet Law Offices, P.C., serves as bankruptcy counsel. The Debtor's primary asset is certain real property located at 2816 South Country Club Drive and 2828 South Country Club Drive, Mesa, Arizona 85210, where the Debtor operates a car wash, a lube shop, and a small convenience store -- the Mesa Car Wash. In its petition, the Debtor estimated $1 million to $10 million in both assets and liabilities. The petition was signed by Michael Harris, member/manager. An official committee of unsecured creditors has not yet been appointed in the Chapter 11 case of Boss Real Estate Holdings, LLC, as of May 16, according to a court docket. BOWLIN FUNERAL: Wants to Use Commerce Bank Cash Collateral ---------------------------------------------------------- Bowlin Funeral Home, Inc., seeks authorization from the U.S. Bankruptcy Court for the Western District of Missouri to use cash collateral, receivables and proceeds thereof to maintain ongoing operations and avoid immediate and irreparable harm to the estate. The Debtor's owner/manager intends to continue the Debtor's funeral services business and to propose a Chapter 11 Plan, which will restructure its debts, as authorized by the Bankruptcy Code, while providing adequate protection to its secured creditor, Commerce Bank. The Debtor estimates that its operating expenses during the next 45 days, including payroll to employees, will be approximately $58,632. The Debtor's estimated payroll obligation to employees during the next thirty days will be approximately $19,536. When Debtor filed this case, the Debtor's real estate located at 100 South Oak Street, in the City of California, Missouri, was subject to the obligations of commercial security agreement and deed of trust liens in favor of Commerce Bank, and all of Debtor's assets appear to be subject to the liens of Commerce Bank. The Debtor owed Commerce Bank approximately $520,000. The Debtor's owner estimates that the liquidation value of Debtor's assets, which are secured to Commerce Bank is approximately $862,114. Therefore, the Debtor asserts that Commerce Bank is over-secured by approximately $342,114. Moreover, the Debtor believes that the interests of Commerce Bank with respect to its collateral may be adequately protected by the Debtor's continued operations since it will increase the Debtor's ability to pay its obligations to Commerce Bank and other creditors. The Debtor also suggests that an adequate protection payment of $4,000 per month would adequately protect Commerce Bank from diminution of its secured position pending confirmation of a plan. A full-text copy of the Debtor's Motion, dated Oct. 2, 2017, is available at https://is.gd/gzZwqP Commerce Bank is represented by: Trevin E. Wray, Esq. Simpson, Logback, Lynch, Norris, P.A. 7400 West 110th St., Ste. 600 Overland Park, Kansas 66210 About Bowlin Funeral Home Bowlin Funeral Home, Inc., is a Missouri general business corporation, which is in the business of providing funeral services. Its corporate headquarters are located at 100 South Oak Street, California, Missouri. The corporation is wholly owned and operated by Mark R. Elliott, Jr. This funeral services business has been in Mr. Elliott's family for approximately 100 years. Mr. Elliott has operated the business for approximately 11 years. The Debtor first filed a Chapter 11 case (Bankr. W.D. Mo. Case No. 17-20736-drd11) on July 21, 2017, estimatingg assets and liabilities of less than $1 million. Mark R. Elliott, Jr., the sole owner and shareholder, signed the first petition. The Court dismissed this case on Aug. 30, 2017 for Debtor's failure to achieve reinstatement of its corporate charter and show proof of insurance for property of the estate. On Sept. 20, 2017, the Debtor's corporate charter was reinstated, and on Sept. 29, 2917, the Debtor's commercial insurance policy was reinstated. Bowlin Funeral Home again sought protection under Chapter 11 of the Bankruptcy Code (Bankr. W.D. Mo. Case No. 17-20965) on Oct. 3, 2017. Judge Dennis R. Dow presides over the case. No trustee or examiner has been appointed in this case, and no committees have been designated or appointed. Attorneys for the Debtor: BOUL & ASSOCIATES, P.C. Harry D. Boul Shelley L. Forrest One East Broadway, Ste. B Columbia, MO 65203 Tel: (573) 443-7000 Fax: (573) 449-6554 E-mail: hboul@earthlink.net BREITBURN ENERGY: Committee Seeks Termination of Exclusivity ------------------------------------------------------------ Breitburn Energy Partners' official committee of unsecured creditors filed with the U.S. Bankruptcy Court an objection to the Debtors' fifth motion for an exclusivity extension. BankruptcyData.com reported that the objection asserts, "The Debtors have now been in bankruptcy for more than sixteen months and there is still no plan on file. Despite four extensions of the Debtors' exclusive periods and months of negotiations between the Debtors, unsecured creditors, and to a certain extent the Second Lien Group, there has been no agreement on a plan that clearly maximizes the value of the estate and is supported by each class of creditors . . . the Rights Offering Plan, which the Debtors now seem to be favoring, and the Debtors' alternative Permian Sale Plan are premised on a sale of the Debtors' assets. The former is based on a sale of the Permian Assets -- disguised as a 'rights offering' -- to a select group of Unsecured Noteholders and a sale of the Debtors' legacy assets to the Second Lien Noteholders. The Debtor's alternative plan purportedly would involve a Court-approved sale of the Permian Assets and a restructuring around the legacy assets that principally would benefit the Second Lien Noteholders. Although the Committee believes that a sale of the Debtors' assets is appropriate given the current circumstances and the amount of time that has passed in these cases, neither of the plans being considered by the Debtors would maximize the value of the assets for unsecured creditors, the fulcrum class, as a whole in these cases. Accordingly, the Committee believes the best course of action would be to terminate exclusivity and allow the Committee to propose a plan based on a transparent sale process employing well-established procedures that will maximize value." About Breitburn Energy Breitburn Energy is engaged in the acquisition, exploitation and development of oil and natural gas properties, Midstream Assets, and a combination of ethane, propane, butane and natural gasoline that when removed from natural gas become liquid under various levels of higher pressure and lower temperature, in the United States. Operations are conducted through Breitburn Parent's wholly-owned subsidiary, Breitburn Operating LP, and BOLP's general partner, Breitburn Operating GP LLC. Breitburn Energy Partners LP and 21 of its affiliates filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No. 16-11390) on May 15, 2016, listing assets of $4.71 billion and liabilities of $3.41 billion. The petitions were signed by James G. Jackson, executive vice president and chief financial officer. The Debtors are represented by Ray C Schrock, Esq., and Stephen Karotkin, Esq., at Weil Gotshal & Manges LLP. The Debtors hired Steven J. Reisman, Esq., and Cindi M. Giglio, Esq., at Curtis, Mallet-Prevost, Colt & Mosle LLP as their conflicts counsel. The Debtors tapped Alvarez & Marsal North America, LLC, as financial advisor; Lazard Freres & Co. LLC as investment banker; and Prime Clerk LLC as claims and noticing agent. The U.S. trustee for Region 2 appointed three creditors of Breitburn Energy Partners LP and its affiliates to serve on the official committee of unsecured creditors, and on Nov. 15, 2016, the U.S. Trustee appointed seven creditors of Breitburn Energy Partners LP and its affiliated debtors to serve on the official committee of unsecured creditors. BRIAR HILL: Receiver Beyond Scope of Bankr. Court Authority ----------------------------------------------------------- Judge Russ Kendig of the U.S. Bankruptcy Court for the Northern District of Ohio denied in part and granted in part Debtors Briar Hill Foods, LLC, et al.'s motion to excuse the state court receiver's duty to turnover property of the estate and to allow the state court receiver to remain in possession and management of the property. Debtors operated several grocery stores in multiple counties, as well as a real estate holding company. They borrowed money from Huntington National Bank, which took a security interest in nearly all of Debtors' assets. The grocery stores ceased operations months prior to filing. Huntington filed foreclosure actions in five counties and had a receiver appointed in each county. To facilitate the sale of Debtors' assets, Debtors filed a chapter 11 bankruptcy case on August 25, 2017. The Debtors seek approval for the receiver to retain the property and operate as a property manager and unretained realtor and they have the support of Huntington, Sanders Bros., and the US Trustee. In a support document filed on Sept. 26, 2017, Debtors submitted several orders from other cases that allowed a receiver to continue in his role under the watchful eye of a bankruptcy court. While all of the orders reference section 543, not one addresses the concerns highlighted by the court during the hearing that granting these powers to a person that is not a chapter 11 trustee, not the debtor-in-possession, and not a professional employed under the code by Section 327 of the Bankruptcy Code is beyond the scope of the bankruptcy court's authority. The court says it cannot concoct procedures and rules to accommodate a good result, especially when the means circumvent the bankruptcy code. The Bankruptcy Code provides that there is a debtor in possession or a trustee. There is no alternative. It is the Bankruptcy Code, not the Bankruptcy Suggestions. What it appears everyone wants is the super release provisions of a bankruptcy sale order without complying with the rest of the code. The court declines the invitation to act in a legislative (and management) capacity. Thus, Judge Kendig thus orders that: -- Pursuant to Section 543(d)(1) of the Bankruptcy Code, the Custodian is excused from complying with the turnover provisions of Section 543(b) of the Bankruptcy Code through and including Oct. 27, 2017. -- The Custodian is authorized to remain in possession, control and operation of the Receivership Property under the jurisdiction of the Court and in accordance with the provisions of the Bankruptcy Code through and including Oct. 27, 2017. -- The Custodian is further authorized to take possession, control and operation of the Debtors' real and personal property located at 12300 Columbiana Canfield Road, Alliance, Ohio 44601 (and collectively with the Receivership Property through and including Oct. 27, 2017. -- The Custodian is authorized and directed to manage, maintain and conserve the Properties and to demand, collect and receive rent and profits arising from the Properties. A full-text copy of Judge Kendig's Memorandum Opinion and Order dated Sept. 29, 2017, is available at: http://bankrupt.com/misc/ohnb17-61892-74.pdf About Briar Hill Foods Briar Hill Foods, LLC, and several affiliates filed separate voluntary petition for reorganization under Chapter 11 (Bankr. N.D. Ohio Case No. 17-61892) on Aug. 5, 2017. The other debtors are Bias Realty, Ltd. (Bankr. N.D. Ohio Case No. 17-61893); Jack Coffy, LLC (Bankr. N.D. Ohio Case No. 17-61894); CPW Properties, Ltd. (Bankr. N.D. Ohio Case No. 17-61895); Thorne Management, Inc. (Bankr. N.D. Ohio Case No. 17-61896). At the time of filing, Briar Hill's estimated assets are $1 million to $10 million and estimated debt is $10 million to $50 million. Bias Realty's estimated assets are $500,000 to $1 million and estimated debt is $1 million to $10 million. Judge Russ Kendig presides over the cases. The Debtors are represented by Marc B. Merklin, Esq. at Brouse McDowell, LPA, as their bankruptcy counsel. BRINK'S CO: S&P Lowers Corp. Credit Rating to 'BB+', Outlook Stable ------------------------------------------------------------------- S&P Global Ratings lowered its corporate credit rating on U.S.-based cash-management services provider The Brink's Co. to 'BB+' from 'BBB-'. S&P said, "At the same time, we lowered our issue-level rating on the company's $525 million revolving credit facility to 'BB+' from 'BBB-' and assigned a recovery rating of '3', indicating meaningful recovery (50%-70%; rounded estimate: 60%) in the event of a default. The rating on the $525 million revolver is based upon the current capital structure and does not reflect the proposed $1 billion secured credit facility and $500 million secured term loan. We expect to withdraw this rating when the company enters into its proposed $1 billion secured credit facility and $500 million secured term loan, which will replace the rated credit facility. "In addition, we removed these ratings from CreditWatch, where they were placed with negative implications on July 14, 2017. "We are also assigning a 'BB' issue-level rating to the company's proposed $500 million senior unsecured notes based on the proposed capital structure that will consist of the new credit facility, term loan, and unsecured notes. The recovery rating is '5', indicating modest recovery (10%-30%; rounded estimate: 15%) in the event of a default." Brinks acquired Maco of Argentina for approximately $209 million in July 2017, and it is in the process of acquiring Temis of France for approximately $71 million. Both of the acquisitions were primarily debt-financed. While both will bolster the company's revenue and earnings, this will be more than offset by the incremental debt, which will result in weaker credit metrics. S&P said, "We expect the company's adjusted funds from operations (FFO)-to-debt ratio to decline to about 26% at the end of 2017 from an already stretched 30.2% as of June 30, 2017, and to remain relatively consistent through 2018. The company also has off-balance-sheet liabilities, including operating leases, that we treat as debt. "The outlook is stable. Over the next year, we expect Brink's credit metrics to remain relatively consistent, with incremental debt from previously announced and potential acquisitions offsetting increased revenues and earnings. We expect the company's FFO to debt to remain in the mid-high 20% area and debt to EBITDA in the high 2x area through 2018. "Although unlikely, we could lower our rating on Brink's over the next year if the company's FFO-to-debt ratio falls below 20% and we believe this metric will remain at this level for an extended period. This could occur if, for example, the company pursues further debt-financed acquisitions or its revenues and earnings are weaker than expected due to a decline in demand or unfavorable currency fluctuations. "Although also unlikely, we could raise our rating on Brink's over the next year if the company's debt leverage and credit metrics improve more quickly than we expect due to a significant increase in end-market demand or a significant increase in earnings from operational initiatives. Specifically, the company would have to sustainably improve its FFO-to-debt ratio above 30%." BRUGNARA PROPERTIES: Unsecureds To Be Paid in Full in 60 Days ------------------------------------------------------------- Brugnara Properties VI filed with the U.S. Bankruptcy Court for the Northern District of California a disclosure statement dated Sept. 20, 2017, referring to the Debtor's plan of reorganization. Class 8 Unsecured Claims are impaired by the Plan. The Debtor's unsecured claims total $4,500. Those claims would be paid in full within 60 days of the Effective Date of the Plan through a cash infusion from the Debtor's principal. The source of the funds to repay the secured claims will come from either a refinance of the property or from cash infusion from the owner's family members, including the sale of fine art by the owner's son, Luke Brugnara II, but also from cash infusion by the owner's husband, Luke Brugnara, who has been successfully raising capital for all Brugnara Property entities for the past 25 years. In Mr. Brugnara's Federal Court tax case, WHA-0222, the IRS testified that Luke Brugnara made between $1M and $103M per year over the past 20 years. When Mr. Brugnara returned from La Tuna prison in 2012 he arranged for the payoff of an $11M second trust deed on Sea Cliff from PEM Group, and also successfully paid off that loan in 2013. Mr. Brugnara is scheduled to be released from his current incarceration within the next year, and will be able to raise the money needed to make the payments required under the Plan. Luke Brugnara will be able to refinance the existing to the subordinate lenders as he has done successfully on much greater subordinate debt on Sea Cliff for over 15 years. Luke Brugnara has borrowed over $1.3 Billion from his private lenders which loans have been repaid. A copy of the Debtor's Disclosure Statement is available at: http://bankrupt.com/misc/canb17-30501-59.pdf About Brugnara Properties VI Brugnara Properties VI, a company San Francisco, California, sought protection under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Calif. Case No. 17-30501) on May 22, 2017. Katherine Brugnara, president, signed the petition. At the time of the filing, the Debtor disclosed that it had estimated assets and liabilities of $10 million to $50 million. Judge Hannah L. Blumenstiel presides over the case. On Sept. 17, 2010, the Debtor sought bankruptcy protection (Bankr. N.D. Cal. Case No. 10-33637), which case was converted to a Chapter 7 liquidation. The Debtor filed another Chapter 11 case on Dec. 31, 2014 (Bankr. N.D. Cal. Case No. 14-31867), which has been dismissed by a judge. Ruth Elin Auerbach, Esq., who has an office in San Francisco, California, serves as the Debtor's legal counsel. CADIZ INC: Agrees to Settle Dispute with MSD Master for $3.3M ------------------------------------------------------------- Cadiz Inc. and Cadiz Real Estate LLC entered into a settlement agreement and release with MSD Master Credit Opportunity Fund, L.P., Milfam II L.P. and WPI-Cadiz Farm CA, LLC pursuant to which the Company agreed to issue an aggregate of 264,096 shares of the Company's common stock, par value $0.01 per share, with an aggregate value of $3,301,183 in connection with the settlement of certain disputes related to the delivery of a notice of prepayment pursuant to that that certain Amended and Restated Credit Agreement, dated as of Oct. 30, 2013, by and among Cadiz, the Lenders and Wells Fargo Bank, National Association, as administrative agent. Effective upon the delivery of the Shares, the outstanding warrants A-1, A2 and A-3 registered in the name of the Lenders and pursuant to which the Lenders had the right to purchase up to 357,500 shares of the Company's Common Stock may not be exercised and will be deemed cancelled and retired on the books and records of the Company. Upon each Lender's receipt of the Shares, each Lender, on behalf of their respective agents, employees, representatives, assignors, insurers, heirs and assigns will release the Cadiz Parties from any and all charges, complaints, claims, causes of action, liabilities of any kind, rights, obligations, accountings or damages arising from the Credit Agreement and all amendments thereto, the Payoff Agreement, the loans evidenced by the Credit Agreement, the Warrants, or the referenced dispute that may have existed on or before the Effective Date. In addition, Cadiz, and each of them, on behalf of themselves and their respective agents, employees, representatives, assignors, insurers, heirs and assigns, will each release the Lender Parties from any and all charges, complaints, claims, causes of action, liabilities of any kind, rights, obligations, accountings or damages arising from the Credit Agreement and all amendments thereto, the Payoff Agreement, the loans evidenced by the Credit Agreement, the Warrants, or the referenced dispute that may have existed before the Effective Date. In accordance with the terms of the Settlement Agreement, the Shares are being issued pursuant to the Company's registration statement on Form S-3 (Registration Statement No. 333-214318) previously filed with the Commission and declared effective Nov. 14, 2016, and a related prospectus supplement filed with the Commission. About Cadiz Cadiz Inc. is a land and water resource development company with 45,000 acres of land in three areas of eastern San Bernardino County, California. Virtually all of this land is underlain by high-quality, naturally recharging groundwater resources, and is situated in proximity to the Colorado River and the Colorado River Aqueduct, a major source of imported water for Southern California. The Company's properties are suitable for various uses, including large-scale agricultural development, groundwater storage and water supply projects. The Company's main objective is to realize the highest and best use of its land and water resources in an environmentally responsible way. Cadiz reported a net loss and comprehensive loss of $26.33 million on $412,000 of total revenues for the year ended Dec. 31, 2016, compared to a net loss and comprehensive loss of $24.01 million on $304,000 of total revenues for the year ended Dec. 31, 2015. As of June 30, 2017, the Company had $72.21 million in total assets, $142.9 million in total liabilities and a total stockholders' deficit of $70.66 million. CAROLINA MOLD: Allowed to Use Cash to Defray October 2017 Expenses ------------------------------------------------------------------ Judge Benjamin Kahn of the U.S. Bankruptcy Court for the Middle District of North Carolina signed a sixth interim cash collateral order, authorizing Carolina Mold & Machining, Inc., to use cash collateral for its ordinary and reasonable operating expenses pursuant to the budget until Oct. 31, 2017. The Debtor owes approximately $505,000 to Patsy Marion pursuant to a Promissory Note, which is secured by the Debtor's inventory, equipment and accounts pursuant to a Security Agreement. Patsy Marion is the wife of the majority shareholder of the Debtor, Rodney Marion and as such is considered an insider pursuant to the Bankruptcy Code. Prepetition the Debtor became indebted to the Internal Revenue Service for unpaid taxes and filed two Notices of Liens with the North Carolina Secretary of State against the Debtor. The Notice of Liens against the Debtor states indebtedness is owed to the IRS in the amount of $885,881, which is secured by any personal property, including general intangibles, owned by the Debtor. The Debtor also has a lease with Direct Capital Corporation for an article of equipment used in the Debtor's business, more particularly described as a GF Agie Charmilless FO350, SP. The term of the lease is for 60 months with a monthly payment of $2,965 and an end of lease purchase option of $1. As of the Petition Date, the amount remaining owed under the terms of the lease is approximately $55,000. The Debtor contends that the Fair Market Value of the Equipment is $125,000. Patsy Marion, Direct Capital and the IRS are each granted a postpetition replacement lien in the Debtor's postpetition property of the same type which secured their respective indebtedness prepetition, with such liens having the same validity, priority, and enforceability as they had against the same type of such collateral as of the Petition Date. The postpetition liens and security interests provided will be subordinate to Trailing Expenses. The Debtor is directed to make monthly adequate protection payments to Direct Capital in the amount of $1,400, as well as to the IRS in the amount of $5,500. In addition, Direct Capital will be entitled to $4,000 in allowed expenses, which amount will be added to its claim to cover all attorney fees incurred, or to be incurred, except any actions pursuant to objections to the confirmation of the plan of reorganization The Debtor will also keep all its personal property insured for no less than the amounts of the prepetition insurance. The Debtor was required to pay all applicable insurance premiums, taxes, and other governmental charges as they become due, and will make all tax deposits and file all applicable tax returns on a timely basis. The Debtor is also directed to submit to the Bankruptcy Administrator, the IRS and Counsel for Patsy Marion monthly reports of operations and cash flow. A full-text copy of the Sixth Interim Order, dated Oct. 3, 2017, is available at https://is.gd/vFzcQf About Carolina Mold Carolina Mold and Machining, Inc., was founded in 1994 by Rodney Marion and James Hoague. Originally Carolina Mold was a mold manufacturer, mold repair and mold modification facility. As the industry changed, most new molds are being built offshore. As such the business has changed to mostly service repairs and engineering changes, while still manufacturing some new molds. The company's financial situation stems from Rodney Marion turning over the day to day operations of the business to his son. This has caused the Company to fall significantly behind on taxes due to the Internal Revenue Service. Rodney Marion is currently in charge of all operations and as such the business is improving to the point necessary to be profitable. Carolina Mold & Machining, Inc., sought protection under Chapter 11 of the Bankruptcy Code (Bankr. M.D.N.C. Case No. 17-10001) on Jan. 1, 2017. Rodney Marion, president, signed the petition. The Debtor disclosed $660,978 in assets and $1.48 million in liabilities. The Debtor is represented by Dirk W. Siegmund, Esq., at Ivey, McClellan, Gatton & Siegmund, LLP. No official committee of unsecured creditors has been appointed in the case. CASHMAN EQPT: Oct. 11 Non-Evidentiary Hearing on Sale of Vessels ---------------------------------------------------------------- Judge Melvin S. Hoffman of the U.S. Bankruptcy Court for the District of Massachusetts held an evidentiary hearing on Cashman Equipment Corp.'s sale of vessels free and clear of liens in the ordinary course of business. Objections to the said sale have been filed by Citizens Asset Finance, Inc. and Rockland Trust Company. A further non-evidentiary hearing is set for Oct. 11, 2017, at 12:30 p.m. A further hearing at which the Court will take evidence if necessary will be held on Oct. 23, 2017, at 10:00 a.m. 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. CATALENT PHARMA: Moody's Rates New Secured Loans 'Ba3' ------------------------------------------------------ Moody's Investors Service assigned a Ba3 rating to Catalent Pharma Solutions, Inc.'s new senior secured credit facilities. There is no change to the B1 Corporate Family Rating (CFR), B1-PD Probability of Default Rating (PDR), or B3 rating on the senior unsecured notes. The Speculative Grade Liquidity Rating of SGL-1 also remains unchanged. The outlook is stable. The new senior secured credit facilities include a $200 million revolving credit facility expiring in 2022 and roughly $1.6 billion in term loan debt due 2024. The new facilities will extend the tenor of Catalent's senior secured credit facilities by three years. This will reduce refinancing risk as Catalent moves to integrate Cook Pharmica, its largest acquisition to date. Ratings assigned: Catalent Pharma Solutions, Inc. Senior secured Revolving credit facility expiring 2022 at Ba3 (LGD 3) Senior secured term loans due 2024 at Ba3 (LGD 3) Ratings unchanged: Catalent Pharma Solutions, Inc. Corporate Family Rating at B1 Probability of Default Rating at B1-PD Senior unsecured notes due 2024 at B3 (LGD 6) Speculative Grade Liquidity Rating at SGL-1 Ratings unchanged that Moody's expects to withdraw upon close: Catalent Pharma Solutions, Inc. Senior secured revolving credit facility expiring 2019 at Ba3 (LGD 3) Senior secured term loans due 2021 at Ba3 (LGD 3) The outlook is stable. RATINGS RATIONALE Catalent's B1 rating is constrained by its relatively high financial leverage and modest free cash flow. The rating is also constrained by volatility inherent in the pharmaceutical contract manufacturing industry. Lost revenue when customers' drugs become generic, pricing pressure exerted by large clients, and high fixed costs can create volatility in net profit and cash flows. The rating is supported by Moody's expectation that Catalent will benefit over the next 2-3 years as more drugs coming to market require more complex dosage solutions. In addition, Moody's acknowledges Catalent's push into more stable, albeit lower margin, businesses such as consumer and animal health. The rating is also supported by Catalent's good scale and leading market position in the development and manufacturing of softgels and other oral drug delivery technologies. The company also maintains a diversified customer base and commands a large library of patents, know-how, and other intellectual property that raise barriers to entry and enhance margins. These factors help mitigate the volatility created by the inherent industry challenges discussed above. The stable rating outlook reflects Moody's expectation that leverage will show moderate improvement over the next 12-18 months as previously soft businesses, such as modified release technologies and pre-filled syringes, stabilize and begin to grow again. In addition, Moody's expects new product lines, such as animal health and biologics, to help Catalent's growth. The Speculative Grade Liquidity Rating of SGL-1 reflects Moody's expectation that Catalent's liquidity will remain very good over the next 12 to 18 months. Catalent's liquidity will be supported by free cash flow in excess of $150 million over the next year, a strong cash balance ($288 million as of June 30, 2017), and $188 million of availability under its $200 million revolver. The ratings could be upgraded if Catalent reduces financial leverage such that its debt to EBITDA approaches 4.0 times. Successful integration of acquisitions and organic growth that results in increased scale and improved business line diversity, including reduced concentration in softgels, would also support an upgrade. The ratings could be downgraded if Moody's expects Catalent's financial leverage to be sustained above 5.5 times. The ratings could also be downgraded if Catalent's earnings deteriorate or if the company adopts a more aggressive acquisition strategy. Catalent Pharma Solutions, Inc. ("Catalent"), based in Somerset, New Jersey, is a leading provider of development solutions and advanced delivery technologies for drugs, biologics and consumer health products. These include the company's formulation, development and manufacturing of softgels and other products for the prescription, consumer, and animal health industries. The company reported revenue of approximately $2.1 billion for the twelve months ended June 30, 2017. The principal methodology used in these ratings was Business and Consumer Service Industry published in October 2016. CB URS HOLDINGS: S&P Assigns B Corp. Credit Rating, Outlook Stable ------------------------------------------------------------------ S&P Global Ratings assigned its 'B' corporate credit rating to CB URS Holdings Corp. The outlook is stable. S&P said, "At the same time, we assigned our 'B' issue-level rating and '3' recovery rating to the company's proposed $260 million first-lien term loan due 2024. The '3' recovery rating indicates our expectation for meaningful recovery (50%-70%; rounded estimate: 55%) in the event of a payment default. "Our ratings on URS reflect the company's participation in the highly fragmented, competitive, cyclical, and capital-intensive trucking industry. The ratings also reflect the company's narrow geographic focus in North America as it predominantly operates in the U.S. Over the next couple of years, we believe that URS' car-hauling volumes will increase gradually, supported by moderate U.S. economic growth. We also believe that the company will maintain debt-to-EBITDA of around 4x over the next 12 months. "The stable outlook on URS reflects our belief that the company will continue to gradually increase its market share in the remarketed auto-hauling sector as its contribution from the new auto-hauling market remains steady. We expect that the company will moderately increase its EBITDA in line with our expectations while maintaining debt leverage of around 4x and a FFO-to-debt ratio in the mid-teens percent area over the next 12 months. "While unexpected, we could lower our ratings on URS during the next 12 months if its debt leverage increases above 6x or its FOCF approaches zero. This could occur if there is a dramatic slowdown in the auto-hauling market that weakens the company's pricing and leads to the loss of some of its significant customers. "Although unlikely in the next 12 months, we could raise our ratings on URS if the company develops a stable operating track record under Carlyle's ownership and we come to believe that its new owner is committed to maintaining debt leverage of comfortably below 4x and a FOCF-to-debt ratio of greater than 10%. We would also need to believe that the risk of the company increasing its adjusted debt-to-EBITDA above 5x is low." CHIRAG PATEL: S. Patel Seeks Appointment of Chapter 11 Trustee -------------------------------------------------------------- Suresh Patel filed a motion asking the U.S. Bankruptcy Court for the District of New Jersey to direct the appointment of a Chapter 11 Trustee in the case of Chirag & Apeksha Patel. On April 6, 2017, Chirag & Apeksha Patel filed a joint voluntary petition seeking relief under Chapter 11 of Title 11 of the United States Code in the U.S. Bankruptcy Court for the District of New Jersey. Suresh Patel is the 70% member of the five companies listed in question 18 of the Statement of Financial Affairs filed with the bankruptcy petition. Suresh asserts there can be no dispute that cause exists to appoint a Chapter 11 Trustee based upon the Debtors' failure to schedule assets on schedule B of his petition; his false representation regarding the transfer of the corporate interests in the statement of financial affairs; his failure to present the offer to purchase the assets to the Court or creditors; retention of counsel absent court approval and the filing of a frivolous lawsuit. Further, the appointment of a Chapter 11 Trustee is in the best interest of the estate and the creditors. The Debtors have been in bankruptcy for almost six months and have taken little or no action to move this case towards the filing of a confirmable plan of reorganization. Attorney for Suresh Patel: Joseph M. Casello, Esq. COLLINS, VELLA & CASELLO, LLC Chirag & Apeksha Patel filed for Chapter 11 bankruptcy protection (Bankr. D.N.J. Case No. 17-17048) on April 6, 2017. CIBER INC: Nov. 15 Liquidation Plan Confirmation Hearing -------------------------------------------------------- BankruptcyData.com reported that the U.S. Bankruptcy Court for the District of Delaware issued an order approving the Disclosure Statement explaining the Amended Chapter 11 Plan of Liquidation of CMTSU Liquidation, Inc. fka CIBER, Inc., and its affiliates, and scheduled a November 15, 2017 hearing to consider the Company's Amended Chapter 11 Plan of Liquidation, with objections due by November 1, 2017. Class 3 General Unsecured Claims are impaired by the Plan. In full and final satisfaction, settlement, and release of and in exchange for each allowed claim in Class 3, each holder will receive its pro rata share of cash in the General Unsecured Claims Reserve; provided, however, that each holder of an Allowed Class 3 Claim may make the Class 3 Cash-Out Election on the holder's Class 3 Ballot or upon allowance of the Class 3 Claim; provided, further, that a holder of a Class 3 Claim will not be permitted to exercise the Class 3 Cash-Out Election unless the holder votes to accept the Plan. Allowed General Unsecured Claims will not, except to the limited extent provided in Article III of the Plan, include interest attributable to or otherwise accrued during any period on or after the Petition Date. Class 4, which consists of all Interests in CMTSU Liquidation, Inc., is impaired by the Plan. In full and final satisfaction, settlement, and release of and in exchange for each Allowed Interest in Class 4, each holder will be entitled to retain the interests, which will entitle the holder to receive its pro rata share of cash, if any, from the remaining funds. The Plan provides for the distribution of all cash held by or for the benefit of the Debtors on and after the Effective Date. In addition to cash on hand, the Debtors' property consists primarily of: (a) the Debtors' rights under the purchase agreement and other transaction documents, in each case in accordance with the terms of the purchase agreement and any other transaction document, as applicable; (b) the Debtors' rights with respect to any executory contracts or unexpired leases identified on the contract assumption schedule; (c) the Debtors' rights with respect to the insurance policies, including the D&O Policies; and (d) the Debtors' rights with respect to the Post-Effective Date Debtors' causes of action and any proceeds generated therefrom. A copy of the Disclosure Statement is available at: http://bankrupt.com/misc/deb17-10772-639.pdf About CIBER Inc. CIBER, Inc. -- http://www.ciber.com/-- is a global information technology consulting, services and outsourcing company. CIBER, Inc., and two other affiliates sought bankruptcy protection on April 9, 2017 (Bankr. D. Del. Lead Case No. 17-10772). The petition was signed by Christian Mezger, chief financial officer. The Debtors disclosed total assets of $334.2 million and total liabilities of $171.9 million as of Sept. 30, 2016. The Hon. Brendan Linehan Shannon presides over the case. Morrison & Foerster LLP is the Debtors' lead bankruptcy counsel. Polsinelli, PC, serves as co-counsel while Saul Ewing LLP serves as local counsel. The Debtors also hired Houlihan Lokey as investment banker and financial advisor; Alvarez & Marsal North America, LLC, as restructuring advisor; and Prime Clerk LLC as noticing and claims agent. An official committee of unsecured creditors has been appointed in the Chapter 11 case. The committee retained Perkins Coie, LLP, as bankruptcy counsel; Shaw Fishman Glantz & Towbin LLC as co-counsel; and BDO Consulting as financial advisor. CIRCLE Z: Selling Pump Units 102, 107 and 108 --------------------------------------------- Circle Z Pressure Pumping, LLC, asks the U.S. Bankruptcy Court for the Eastern District of Texas to authorize the sale of three pump units: (i) Unit 102 - 2009 Galyean 8'6" W x 46' L Tri-Axle Pump Trailer, VIN 1G9DD46229H017201, to Webbtex, LLC for $150,0000; and (ii) Unit 107 – 1980 Phelan 8'6" W x 36' L Tandem Axle Pump Trailer VIN TM1TW25781; and (iii) Unit 108 – 2001 Towway 8'6" W x 34' L Tandem Axle Pump Trailer VIN 1F9GS3432711239100 to qualified buyers. Objections, if any, must be filed within 21 days from the date of service. The Debtor owns the three Pump Units. Unit 102 is with 2011 Gardner Denver C-2250 Triplex Pump S/N G001834 with fluid end p/b Detroit 12V4000 diesel engine S/N 5262003950 with hydraulic starter, horizontal cooler, Allison transmission, Rolligon controls, hydraulic pumps, two fuel tanks, one hydraulic tank, manual landing gear, air ride, air brakes, 11R24.5 tires, 10-hole Budd wheels, TX X86-450. Unit 107 is with Gardner Denver C-2250 Triplex Pump S/N G000163-1X with fluid end p/b Detroit 16V4000 diesel engine S/N 33150378 with hydraulic starter, vertical cooler, twin disc transmission, Rolligon controls, hydraulic pumps, two fuel tanks, one hydraulic tank, manual landing gear, air ride, air brakes 11R22.5 tires, 10-hole Budd wheels, TX X86-532. Unit 108 is with OFM Quintuplex Pump p/b Detroit 16V4000 diesel engine with hydraulic starter, vertical cooler, twin disc TA90 transmission S/N 3L0949, Rolligon controls, NU-FLO MCII flow analyzer, Wagner 15,000 psi gauge, hydraulic pumps, two fuel tanks, one hydraulic tank, manual landing gear, air ride, air brakes 75R22.5 tires, 10-hole Budd wheels, TX 030-B085 (missing fluid pump end). BancorpSouth Bank holds a first and valid security interest in Pump Units 102, 107, and 108 described. Austin Bank holds a second and valid security interest in said Pump Units. Rusk County, Texas (collecting for the Tatum Independent School District) and Panola County, Texas (collecting for all other taxing entities assessing taxes on said Pump Units) hold statutory tax liens to secure the collection of due and unpaid property taxes assessed against said Pump Units. The claim of BancorpSouth Bank secured by its lien against said Pump Units is approximately $1,291,807. According to its proof of claim filed in this case, the tax liens asserted by Rusk County, Texas against all personal property of the Debtor total $169,991. According to its proof of claim filed in this claim, the tax liens asserted by Panola County, Texas against personal property of the Debtor total $108,223. The values of the Pump Units proposed for sale do not exceed the claims of BancorpSouth Bank, Panola County, and Rusk County. By order dated Aug. 21, 2017, the Court terminated the automatic stay against said the Pump Units and other collateral of BancorpSouth Bank. However, under the terms of the order, BancorpSouth Bank did not take possession of the property affected by the termination of the stay and allowed Debtor to remain in possession of such property under the terms of an agreement entered into with guarantors of the Debtor's debt to BancorpSouth. The agreement contemplated that Debtor would continue to solicit a purchaser or purchasers for the bank's collateral. Webbtex, 7324 Gaston Ave., Ste. 124-420, Dallas, Texas 75215 has agreed to purchase Pump Unit 102 described for the amount of $150,000. In addition, with the consent of BancorpSouth Bank, the Debtor asks authority to sell Pump Units 107 and 108. The Debtor reasonably believes that each pump unit has a value of approximately $50,000. Upon information and belief, the Debtor believes the various secured creditors holding liens against the Pump Units will all consent to the sale of Pump Unit 102 to Webbtex and to sell Pump Units 107 and 108 to qualified buyers approved by the secured creditors, such sales to be free and clear of all liens, encumbrances, claims, and interests, with their interests attaching to the proceeds of the sale. The Debtor proposes to make such sales according to the terms of the Court's Order of Sept. 13, 2017, to deposit all sales proceeds into the DIP escrow account approved by that Order, and to provide a carve-out from the proceeds of the administrative fees of the United States Trustee which would become due as a result of the receipt of such proceeds. The sales proceeds, when applied against existing liens after the carve-out for United States Trustee fees, will not leave any amount for the payment of other administrative expenses or unsecured claims. The Debtor asks that the Court waives the 14-day stay under Bankruptcy Rule 6004(h). Due to the need expressed by Webbtex for Pump Unit 102, the Debtor desires to be able to close the sale as soon as possible after the entry of the order authorizing the sale of the Pump Units. About Circle Z Pressure Pumping Circle Z Pressure Pumping, LLC, renders services in the hydraulic fracturing of formations to enhance the recovery of oil and gas. Circle Z was originally formed in Texas in 2009. Its corporate headquarters and home office is located in Longview, Panola County, Texas. Its managing member, David Powell, has been with the Company since it was formed. Circle Z Pressure Pumping filed a Chapter 11 petition (Bankr. E.D. Tex. Case No. 16-60633) on Oct. 11, 2016. The petition was signed by David Powell, member. The Debtor estimated assets and debt of $10 million to $50 million at the time of the filing. The Debtor is represented by Michael E. Gazette, Esq., at the Law Offices of Michael E. Gazette. On Aug. 7, 2017, the Debtor filed a disclosure statement and Chapter 11 plan of reorganization. COLORADO PROPERTY: U.S. Trustee Unable to Appoint Committee ----------------------------------------------------------- An official committee of unsecured creditors has not yet been appointed in the Chapter 11 case of Colorado Property Repair, LLC. About Colorado Property Repair Based in Arvada, Colorado, Colorado Property Repair, LLC, sought Chapter 11 protection (Bankr. D. Colo. Case No. 17-18004) on Aug. 28, 2017. The Debtor's counsel is Lee M. Kutner, Esq., at Kutner Brinen P.C. COMPARK BUSINESS: S&P Rates 2017 GO Refunding Bonds 'BB+' --------------------------------------------------------- S&P Global Ratings assigned its 'BB+' long-term rating to Compark Business Campus Metropolitan District, Colo.'s series 2017 general obligation (GO) refunding bonds. The outlook is stable. Bond proceeds will be used to refund the district's outstanding series 2007 bonds and extend the final maturity to 2051 from 2034. "The GO rating reflects our view of the district's concentrated and primarily commercial tax base, growing status of development, and high overall debt burden with a slow amortization schedule," said S&P Global Ratings credit analyst Kaila Spalinger. S&P said, "The stable outlook reflects our view of the district's adequate available reserves and coverage levels and lack of additional debt plans. Precluding the district from an investment-grade rating is our view of the district's concentrated tax base and growing status of development. We do not anticipate changing the rating during the two-year outlook horizon. "We could lower the rating should tax base growth begin to taper, resulting in declines or stagnation in assessed values, or if the district were to issue additional debt, increasing its already high debt burden. "Should the district's tax base diversify substantially, or if the district's debt burden were to decrease to levels comparable with those of higher-rated peers, we could consider raising the rating." CONFIRMATRIX LABORATORY: Can Use Cash Collateral Until March 2018 ----------------------------------------------------------------- The Hon. Paul W. Bonapfel of the U.S. Bankruptcy Court for the Northern District of Georgia signed a twelfth consent order, authorizing Confirmatrix Laboratory, Inc. to use the cash collateral of SunTrust Bank. Such authorization to use SunTrust Bank's cash collateral will terminate on the earliest to occur of the close of business on March 31, 2018, or upon entry of additional order modifying the authorization regarding cash collateral. The Debtor's use of cash collateral is restricted to payment only of post-petition expenses specified in the budget in the ordinary course of its business. The Debtor is also authorized and directed to pay quarterly fees to the U.S. Trustee. As of the Petition Date, the Debtor is indebted to the SunTrust Bank in the amount of $4,000,000. To secure payment of such indebtedness, the Debtor grants SunTrust Bank a blanket security interest in all assets of the Debtor but excluding the real property pursuant to that certain Security Agreement. As of Sept. 26, 2017, the Debtor has reduced SunTrust Bank's claim down to approximately $537,077. The Debtor and SunTrust Equipment Finance & Leasing Corp. were parties to that certain Master Equipment Lease Agreement, by which SunTrust Leasing provides five pieces of equipment under a capital lease with the Debtor. As of the Petition Date, the outstanding balance under the Lease Agreement was $365,599. Since the filing of the bankruptcy petition, the Debtor has satisfied the SunTrust Leasing Debt in full. SunTrust Bank will be granted a continuing, additional, first-priority replacement lien and security interest in and to all assets of the Debtor as a condition of the Debtor's use of cash collateral, and to the same extent of the validity and priority of the prepetition liens granted to SunTrust Bank. Furthermore, to secure any diminution in the value of the collateral as it existed on the Petition Date, the Debtor has granted SunTrust Bank a first-priority lien in the Real Property which can only be enforced or foreclosed upon if the SunTrust Bank's allowed claim in this case remains unpaid. In addition, SunTrust Bank will be entitled to an administrative claim pursuant to Section 507(b) of the Bankruptcy Code to the extent that any adequate protection provided for the Debtor's use of the collateral and the cash collateral proves to be inadequate. SunTrust Bank will have the right to inspect the Debtor's books and records at the Debtor's offices or wherever the Debtor's records are maintained. The Bank will also have the right to inspect the collateral, the Debtor's business operations and the Debtor's place of business and conduct any appraisals thereof. Furthermore, the Parties agreed, among other things, that: (a) The Debtor will use its best efforts to continue marketing the Real Property at a sale price satisfactory to the Bank and the Debtor will pay to the Bank, up to the balance of the Bank's claim. (b) The Debtor will deposit into the Operating Account maintained at the Bank -- account ending No. 4929 -- all collateral and all funds in all bank accounts, including all products and proceeds thereof, which the Debtor had on hand as of the Petition Date or which the Debtor received since the Petition Date. (c) Every month until March 2018, the Debtor will furnish the Bank (i) a status report on the Debtor's marketing efforts to sell the Real Property; (ii) a rolling income and expense statement, comparing actual income and expenses received and paid to date to the projected income and expenses; and (iii) a report of amounts receives on account of the NYX Collections as well as updates with respect to outstanding accounts receivables. In December 2016, the Debtor has engaged the services of NYX Health Recovery Services, LLC to pursue collections of certain of the Debtor's aged accounts receivable which constitute as a portion of Bank's collateral. (d) The Debtor will deposit the NYX Collections in the Operating Account upon receipt thereof. After payment of the fees owed to NYX Health Recovery Services, in accordance with the court-approved agreement, the Debtor will retain $85,000 from the NYX Collections and/or sale of accounts receivable, and all amounts in excess of $85,000 will be paid to the Bank up to the balance of the Bank's claim. (e) After the Debtor's receipt of $85,000 from the NYX Collections and/or sale of accounts receivable, the Debtor will pay to Bank the amount by which the actual cash balance at the end of each month exceeds the cash balance as projected in the Budget on such date. (f) The Debtor is allowed to retain and transfer to its Counsel's Trust Account the amount of $30,000 of its budgeted legal and professional fees designated for the payment of fees and expenses incurred since the Petition Date to the Debtor's professionals as approved by the Court pursuant to the Bankruptcy Code. A full-text copy of the 12th Consent Order, dated Sept. 27, 2017, is available at https://is.gd/5I30HT SunTrust Bank and SunTrust Leasing are represented by: Frank W. DeBorde, Esq. Morris, Manning & Martin, LLP 1600 Atlanta Financial Center 3343 Peachtree Road, N.E. Atlanta, Georgia 30326 About Confirmatrix Laboratory Confirmatrix Laboratory, Inc., is a laboratory business focused on toxicology and blood testing. Its principal place of business is located at 1770 Cedars Road, Suite 200, Lawrenceville, Gwinnett County, GA 30045. Confirmatrix Laboratory filed a Chapter 11 petition (Bankr. N.D. Ga. Case No. 16-69934) on Nov. 4, 2016. The petition was signed by Ann B. Durham, CEO. In its petition, the Debtor estimated $1 million to $10 million in both assets and liabilities. William J. Boone, Esq., at James Bates Brannan Groover, LLP, serves as bankruptcy counsel to the Debtor. The Debtor employed Marvin H. Willis and Smith & Howard, P.C. as its accountant. CONSOLIDATED AEROSPACE: Moody's Affirms B3 Corporate Family Rating ------------------------------------------------------------------ Moody's Investors Service changed the outlook of Consolidated Aerospace Manufacturing, LLC, to stable from negative. Concurrently, Moody's affirmed the B3 Corporate Family Rating (CFR), the B3 rating on the senior secured revolving and term loan facilities, and the Caa1-PD Probability of Default Rating. RATINGS RATIONALE The stable outlook reflects Moody's expectation that recent improvements in operating performance and strengthening earnings will continue over the coming quarters. This is expected to support a gradual improvement in CAM's credit profile and lower levels of financial leverage. The B3 corporate family rating (CFR) considers the company's small scale, a high degree of customer concentration, and limited operating history as a consolidated entity. Previous earnings headwinds, primarily in the form of internal execution issues and inventory destocking at key customers, have recently abated and have allowed for an improved credit profile. Near-term pricing pressures from large OEM customers have also subsided (several of these contracts were renewed in 2016) although recent negotiations with a large tier-one supplier will create some modest headwinds in 2018. Moody's expects favorable industry fundamentals along with investments in new product development to support continued sales and earnings growth and Moody's anticipates Debt-to-EBITDA (after Moody's standard adjustments) comfortably below 5x by the end of 2017. The rating also considers CAM's fundamental reliance on cyclical commercial aerospace markets (90% of sales) as well as the company's relatively limited track record as a consolidated entity and uneven historical operating results. Comparatively muted free cash flow generation over the last few quarters (stemming from capex investments and inventory build) along with very limited availability under the revolving credit facility (due to a springing financial covenant) act as tempering considerations. The ratings could be upgraded if Debt-to-EBITDA were expected to be sustained below 4.5x or if EBITDA margins were anticipated to remain in the low-to-mid 20% range. Any upgrade would be contingent on expectations of an improved liquidity profile with FCF-to-Debt consistently in the mid-single digits while maintaining healthy cash balances to offset the limited availability under the revolver. Given the company's small size, Moody's would expects CAM to maintain credit metrics that are stronger than levels typically associated with companies at the same rating level. An expectation of Debt-to-EBITDA exceeding 6.5x could result in a downgrade. A declining liquidity profile such that free cash flow generation was expected to be flat-to-modestly positive or declining cash balances could also result in a downgrade. Internal execution issues or rising past dues or meaningfully leveraging M&A transactions could also result in a downgrade. The following reflects rating actions: Issuer: Consolidated Aerospace Manufacturing, LLC Outlook changed: Rating Outlook, to Stable from Negative Ratings affirmed: Corporate Family Rating, B3 Probability of Default Rating, Caa1-PD $25 million senior secured revolving credit facility due 2020, affirmed B3 (LGD3) $240 million senior secured term loan due 2022, affirmed B3 (LGD3) Consolidated Aerospace Manufacturing, LLC ("CAM") is a manufacturer of aerospace fasteners, fittings, and other aerospace parts and components. CAM serves commercial aerospace, defense and industrial end-markets. The company was founded in 2012, is headquartered in Brea, California and is a portfolio company of Tinicum L.P., an investment partnership managed by Tinicum Incorporated. Sales for the twelve months ended June 2017 were $230 million. The principal methodology used in these ratings was Global Aerospace and Defense Industry published in April 2014. CONSTELLATION ENTERPRISES: Case Converted Into Ch. 7 Proceeding --------------------------------------------------------------- BankruptcyData.com reported that the U.S. Bankruptcy Court issued a revised order converting Constellation Enterprises' Chapter 11 reorganization case to a liquidation under Chapter 7. The order states, "The Debtors' chapter 11 cases shall be converted to cases under chapter 7 of the Bankruptcy Code, effective on October 2, 2017 at 5pm. (the 'Conversion Date'). The U.S. Trustee is hereby directed to appoint a chapter 7 trustee to oversee the Debtor's chapter 7 bankruptcy cases." As previously reported, the Company sought conversion on the following grounds: "Conversion of these cases to cases under chapter 7 is in the best interests of the Debtors' estates. As noted above, there are insufficient funds in the estates or otherwise available to the estates to pay accrued administrative expenses and the anticipated administrative expenses that may be incurred if the Debtors remain in chapter 11 to complete their wind-down and conclude their cases. For example, prior to the conclusion of these cases, the Debtors may need to, among other things, (i) formulate agreed procedures to distribute the funds in the Employee Funding Escrow and, if necessary, obtain Court approval of such procedures, (ii) analyze and, if appropriate, prosecute certain causes of action, including causes of action arising under chapter 5 of the Bankruptcy Code, that remained with the Debtors after the closing of the Sales, and (iii) resolve the WARN Adversary. The Debtors believe that a chapter 7 trustee can more affordably complete such tasks and effectively bring these cases to their conclusion." About Constellation Enterprises Constellation Enterprises LLC manufactures custom engineered metal components for various end markets such as rail transportation, oil and gas, general industrial, nuclear, aerospace, and small gas engine markets. The company was incorporated in 1996 and is based in Caldwell, Texas. Constellation Enterprises and its affiliates filed for Chapter 11 bankruptcy protection (Bankr. D. Del. Lead Case No. 16-11213) on May 16, 2016. William Lowry, chief financial officer, signed the petitions. Constellation Enterprises estimated assets between $1 million and $10 million and debt between $100 million and $500 million. Adam C. Rogoff, Esq., and Joseph A. Shifer, Esq., at Kramer Levin Naftalis & Frankel LLP serve as the Debtors' bankruptcy counsel. Daniel J. DeFranceschi, Esq., Zachary I. Shapiro, Esq., Rachel L. Biblo, Esq., and Joseph C. Barsalona II, Esq., at Richards, Layton & Finger, P.A., serve as the Debtors' co-counsel. Imperial Capital, LLC, is the Debtors' financial advisor. Conway Mackenzie Management Services LLC is the Debtors' crisis management & restructuring services provider. Epiq Bankruptcy Solutions, LLC, is the Debtors' claims and noticing agent. CONSTRUTORA E INCORPORADORA: Chapter 15 Case Summary ---------------------------------------------------- Chapter 15 Debtor: Construtora e Incorporadora Atlantica Ltda. 939 Rua Conego Eugenio Leite, Pinheiro Sao Paulo, Sao Paulo 05414 Brazil Chapter 15 Case No.: 17-12787 Type of Business: Construction Chapter 15 Petition Date: October 3, 2017 Court: United States Bankruptcy Court Southern District of New York (Manhattan) Judge: Hon. Stuart M. Bernstein Chapter 15 Petitioner: Eliza Fazan, legal representative of Alta Administracao Judicial Ltda. 1353 Rua Vergueiro, Torre Sul, bjs.909 Sao Paulo, Sao Paulo 04101 Brazil Foreign Proceeding in Which Appointment of Foreign Representative Occurred: Case No. 1132473-02.2015.8.26-0100 Chapter 15 Petitioner's Counsel: Eugene F. Getty, Esq. KELLNER HERLIHY GETTY & FRIEDMAN, LLP 470 Park Avenue South 7th Floor North New York, NY 10016 Tel: (212) 889-2821 Fax: (212) 684-6224 E-mail: efg@khgflaw.com Estimated Assets: Unknown Estimated Debts: Unknown A full-text copy of the petition is available for free at: http://bankrupt.com/misc/nysb17-12787.pdf CONTEXTMEDIA HEALTH: S&P Alters Outlook to Neg. & Affirms 'B-' CCR ------------------------------------------------------------------ S&P Global Ratings revised its rating outlook on Chicago-based digital media company ContextMedia Health LLC to negative from stable and affirmed the 'B-' corporate credit rating on the company. S&P said, "At the same time, we affirmed our 'B-'issue-level ratings on the company's senior secured $325 million term loan B and $50 million revolving credit facility. The '3' recovery ratings are unchanged, indicating our expectation for meaningful (50%-70%; rounded estimate: 60%) recovery of principal for lenders in the event of a payment default. "The outlook revision reflects our expectation that ContextMedia's free operating cash flow (FOCF) will remain negative in 2018 due to increased operating costs as the company invests in the business at a faster pace than revenue growth is being realized. Although we don't expect any liquidity shortfalls in 2018 due to the large cash balance following an equity injection in the first half of 2017, liquidity may become strained over the next 12-18 months if the company is unable to execute on its growth plan and manage operating costs. Additionally, the company's adjusted leverage increased significantly to the 14x area as of June 2017 from 9.4x at the end of 2016. Absent any material EBITDA growth from the company's investments in its sales staff and strategy, we expect leverage to remain elevated, which could result in a downgrade of the company. "The negative outlook reflects our expectation that ContextMedia's FOCF will remain negative throughout 2017 and 2018 and its adjusted leverage could remain elevated above 12x due to increased risk of the company executing its aggressive growth plan following slower-than-expected revenue growth and increasing costs. "We could lower the corporate credit rating if the company's weaker-than-expected operating performance continues, resulting in sustained cash flow deficits, or if we expect cash balances and revolver availability to fall below $75 million. "Although unlikely over the next 12 months, we could raise the rating if the company continues to grow and it is able to leverage its operating costs in order to improve EBITDA margins, resulting in positive FOCF and a material reduction in leverage." CROCKETT COGENERATION: S&P Cuts $295MM Secured Notes Rating to BB+ ------------------------------------------------------------------ S&P Global Ratings lowered the rating to 'BB+' from 'BBB-' on U.S. electricity and steam generator Crockett Cogeneration L.P.'s (Crockett) $295 million senior secured notes due March 30, 2025. The recovery rating is '3' (60%), indicating the expectation for meaningful recovery in a default. The outlook is negative. "The rating action reflects our expectation of a weakening in the project's financial performance based primarily on our view of a decline in the market heat rate for short-run avoided cost pricing," said S&P Global Ratings credit analyst Corinne Bendersky. "SRAC pricing determines the price that Pacific Gas and Electric Co. pays to Crockett for contracted energy revenues," Ms. Bendersky added. The negative outlook reflects the risk of financial deterioration from the project's exposure to SRAC for approximately 50% of revenues from growing renewable penetration in the state. CROSSROADS SYSTEMS: Completes Reorganization, Reports Q3 Results ---------------------------------------------------------------- Crossroads Systems, Inc., an intellectual property licensing company, reported that the conditions to effectiveness of the prepackaged plan of reorganization under Chapter 11 of the Bankruptcy Code, as amended and approved by the United States Bankruptcy Court, San Antonio, Texas, have occurred. The Plan Effective Date is October 3, 2017. Key features of the plan include: -- 210/CRDS Investment LLC paid $4 million for 1,492,285 shares of the company's new common stock, representing 49.5% of the outstanding new common shares. -- Crossroads paid holders of Series F Convertible Preferred Stock their pro rata share of $2,672,233.78. They also received a pro rata share of 241,182 shares of new common stock, representing 8% of the outstanding new common shares. All shares of the preferred stock have been cancelled. -- Existing stockholders of Crossroads' 1,281,259 common shares, representing 42.5% of the company's new common stock, received one share of new common stock in exchange for each share of old stock. The exchange of shares is automatic and does not require stockholder action. -- As a result of the share issuances and exchanges, there are 3,014,726 new common shares outstanding and no other classes of equity or debt. -- All outstanding warrants, options, and restricted stock awards have been cancelled. -- A $10 million line of credit with 210/CRDS Investment LLC is available to make acquisitions of profitable companies. -- Hannah Bible and Don Pearce have resigned from the Board of Directors and have been replaced by Robert Alpert and Clark Webb. Claire Gogel has been elected to the Board of Directors and Robert Alpert has been named Chairman of the Board. Richard Coleman and Robert Pearse remain on the Board. -- In connection with the restructuring, Crossroads Systems and Oracle Corporation have settled all outstanding claims against each other with prejudice. -- Pending regulatory clearance, Crossroads Systems, Inc. will trade on the OTC Pink Sheets under the symbol CRDS. -- As of October 3, 2017, Crossroads has no debt and a cash balance of approximately $1.3 million. -- In addition to seeking profitable acquisitions, Crossroads will continue its patent monetization efforts. Until such time as the company can close an acquisition or succeed in monetizing its patents, Crossroads expects to continue to operate at a loss. Crossroads Systems also announced financial results for its fiscal third quarter ended July 31, 2017 (Fiscal Q3 2017). On March 22, 2016, Crossroads sold its product business to Canadian-based StrongBox Data Solutions, Inc. The presentation of the company's quarterly financial results excludes product revenues and expenses, which are now reflected as discontinued operations in the prior periods. Fiscal Q3 2017 Financial Results Intellectual property ("IP") license revenue for the fiscal third quarter was $19,000, compared to $57,000 in the same quarter a year ago. Gross profit was $14,000 or 74% of revenue, compared to $34,000, or 60% of revenue, in the same quarter a year ago. Fiscal Q3 2017 operating expenses decreased 35% to $771,000, compared to $1.2 million in the same period a year ago. The decreases were primarily due to reduced litigation and employee related expenses. Fiscal Q3 2017 net loss available to common stockholders was $(619,000) or $(0.50) loss per share, compared to a net loss available to common stockholders of $(481,000) or $(0.39) loss per share in the same quarter a year ago. At July 31, 2017, cash, cash equivalents and restricted cash totaled $1.3 million compared to $2.3 million at April 30, 2017. Management Commentary Richard K. Coleman, Jr., Executive Director at Crossroads Systems, said, "210/CRDS Investment LLC's $4 million investment and $10 Million financing commitment provide a strong foundation for an exciting future. In addition to continuing our patent monetization efforts, our near-term plan will be to identify and acquire a profitable business." "We are excited about our investment in Crossroads Systems," said Robert Alpert, Managing Director of 210/CRDS Investment LLC and Chairman of the Board of Crossroads Systems. "We can now go about the business of monetizing the company's IP, growing the company's business, and creating shareholder value." About Crossroads Systems Crossroads Systems, Inc., sought protection under Chapter 11 of the Bankruptcy Code (Bankr. W.D. Tex. Case No. 17-51926) on Aug. 13, 2017. Jennifer Crane, chief financial officer, signed the petition. At the time of the filing, the Debtor estimated assets of less than $500,000 and liabilities of less than $50,000. Judge Ronald B. King presides over the case. Eric Terry Law, PLLC, serves as bankruptcy counsel to the Debtor. CUSTOM FLATBED: Hires Thompson Accounting as Accountant ------------------------------------------------------- Custom Flatbed Services, Inc., seeks authorization from the U.S. Bankruptcy Court for the Northern District of California to employ Thompson Accounting as accountant. The Debtor requires Thompson to assist on the Debtor's tax returns, related tax issues, monthly operating reports and develop a Plan of Reorganization. Thompson will be paid at these hourly rates: Director $360-$400 Staff Accountant $150-$300 Secretarial/Clerical $100-$150 Thompson will charge a minimum of 2 hours for deposition and court appearances at $400 per hour. The Debtor paid a deposit to Thompson in the amount of $3,600. Michael S. Thompson, CPA, of Thompson Accounting , 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. Thompson may be reached at: Michael S. Thompson, CPA Thompson Accounting 1783 Hester Avenue San Jose, CA 95128 Tel: (408) 247-5253 About Custom Flatbed Services Inc. Custom Flatbed Services, Inc. sought protection under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Cal. Case No. 17-51138) on May 12, 2017. Jose Domiguez, president and CEO, signed the petition. At the time of the filing, the Debtor estimated assets of less than $50,000 and liabilities of less than $500,000. Judge M. Elaine Hammond presides over the case. ENERGY FUTURE: Court to Review NextEra Termination Fee Order ------------------------------------------------------------ On July 29, 2017, Elliott Associates, L.P., Elliott International, L.P., and The Liverpool Limited Partnership filed The Elliott Funds' Motion to Reconsider in Part the Sept. 19, 2016, Order Approving the NextEra Termination Fee in the amount of $275 million. Debtors Energy Future Holdings Corp., et al., and NextEra objected to the Motion to Reconsider. On Sept. 19, 2017 (one year to the day from entry of the Termination Fee Order), Judge Christopher Sontchi of the U.S. Bankruptcy Court for the District of Delaware held a hearing on the Motion to Reconsider on a stipulated record. At the conclusion of the hearing, the Court provided a tentative ruling granting the Motion to Reconsider subject to issuance of a formal opinion and entry of an order. The Court is taking the extraordinary step of reconsidering its order entered over one year ago because its approval of the Termination Fee was based upon a fundamental misapprehension of critical facts. The Court's misunderstanding was based upon imprecise and incorrect testimony by the Debtors' witness, incomplete responses by Debtors' counsel to questions by the Court and conspicuous and unhelpful silence by the beneficiary of the Termination Fee, NextEra. However, the ultimate responsibility for the Court's mistake lies with the Court itself. The Court simply missed the critical nuance between when the Termination Fee would be payable and when it would not be. In any event, had the Court properly understood the facts it would not have approved the payment of the Termination Fee under the present circumstances nor could it. Viewed at the time the Termination Fee was approved, the fee did not satisfy the O'Brien standard for payment of such fees because there could not be any actual benefit to the Debtors' estate by payment of the fee. That has been borne out by the actual circumstances at present. Indeed, payment of the Termination Fee at this time would be extremely harmful to the Debtors' estates. The Court's misapprehension of the facts led to an incorrect application of the legal standard. In short, the Court made a manifest error of fact and law. As such, the Court must take the extraordinary step, which it does not do lightly, of reconsidering an order it entered over a year ago and upon which parties have relied. For these reasons, the Court grants the Motion for Reconsideration. The parties are directed to submit proposed forms of order under certification of counsel by no later than Oct. 10, 2017. A full-text copy of Judge Sontchi's Opinion dated Oct. 3, 2017, is available at: http://bankrupt.com/misc/deb14-10979-11998.pdf Counsel for Elliot Associates, L.P., Elliott International, L.P., and the Liverpool Limited Partnership: Erin R. Fay Scott D. Cousins Evan T. Miller BAYARD, P.A. 222 Delaware Avenue, Suite 900 Wilmington, DE 19801 efay@bayardlaw.com scousins@bayardlaw.com emiller@bayardlaw.com -and- Keith H. Wofford Gregg M. Galardi (Argued) ROPES & GRAY LLP 1211 Avenue of the Americas New York, NY 10036-8704 Keith.Wofford@ropesgray.com Gregg.Galardi@ropesgray.com Co-Counsel to the Debtors and Debtors in Possession: Mark D. Collins Daniel J. DeFranceschi Jason M. Madron RICHARDS, LAYTON & FINGER P.A. 920 North King Street Wilmington, DE 19801 collins@rlf.com defranceschi@rlf.com madrons@rlf.com -and- Edward O. Sassower Stephen E. Hessler, P.C. Brian E. Schartz Aparna Yenamandra KIRKLAND & ELLIS LLP 601 Lexington Avenue New York, NY 10022-4611 edward.sassower@kirkland.com stephen.hessler@kirkland.com brian.schartz@kirkland.com aparna.yenamandra@kirkland.com -and- James H.M. Sprayregen Marc Kieselstein (Argued) Chad J. Husnick Steven N. Serajeddini KIRKLAND & ELLIS INTERNATIONAL LLP 300 North LaSalle Chicago, IL 60654 james.sprayregen@kirkland.com marc.kieselstein@kirland.com chad.husnick@kirkland.com steven.serajeddini@kirland.com Counsel to NextEra Energy, Inc.: Adam G. Landis Matthew B. McGuire Joseph D. Wright LANDIS RATH & COBB LLP 919 Market Street, Suite 1800 Wilmington, DE 19801 landis@lrclaw.com mcguire@lrclaw.com wright@lrc.law.com -and- Dan K. Webb (Argued) WINSTON & STRAWN LLP 35 W. Wacker Drive Chicago, IL 60601-9701 dwebb@winston.com -and- Thomas M. Buchanan 1700 K Street, NW Washington, DC 20006 tbuchanan@winston.com -and- Howard Seife NORTON ROSE FULBRIGHT US LLP 1301 Avenue of the Americas New York, NY 10019-6022 howard.seife@nortonrosefulbright.com -and- Rose Ball 555 South Flower Street, 41st Floor Los Angeles, CA 90071 About Energy Future Energy Future Holdings Corp., formerly known as TXU Corp., is a privately held diversified energy holding company with a portfolio of competitive and regulated energy businesses in Texas. Oncor, an 80 percent-owned entity within the EFH group, is the largest regulated transmission and distribution utility in Texas. The Company delivers electricity to roughly three million delivery points in and around Dallas-Fort Worth. EFH Corp. was created in October 2007 in a $45 billion leverage buyout of Texas power company TXU in a deal led by private-equity companies Kohlberg Kravis Roberts & Co. and TPG Inc. On April 29, 2014, Energy Future Holdings and 70 affiliated companies sought Chapter 11 bankruptcy protection (Bankr. D. Del. Lead Case No. 14-10979) after reaching a deal with some key financial stakeholders to keep its businesses operating while reducing its roughly $40 billion in debt. The Debtors' cases have been assigned to Judge Christopher S. Sontchi (CSS). As of Dec. 31, 2013, EFH Corp. reported assets of $36.4 billion in book value and liabilities of $49.7 billion. The Debtors had $42 billion of funded indebtedness as of the bankruptcy filing. EFH's legal advisor for the Chapter 11 proceedings is Kirkland & Ellis LLP, its financial advisor is Evercore Partners and its restructuring advisor is Alvarez & Marsal. The TCEH first lien lenders supporting the restructuring agreement are represented by Paul, Weiss, Rifkind, Wharton & Garrison, LLP as legal advisor, and Millstein & Co., LLC, as financial advisor. The EFIH unsecured creditors supporting the restructuring Agreement are represented by Akin Gump Strauss Hauer & Feld LLP, as legal advisor, and Centerview Partners, as financial advisor. The EFH equity holders supporting the restructuring agreement are represented by Wachtell, Lipton, Rosen & Katz, as legal advisor, and Blackstone Advisory Partners LP, as financial advisor. Epiq Systems is the claims agent. Wilmington Savings Fund Society, FSB, the successor trustee for the second-lien noteholders owed about $1.6 billion, is represented by Ashby & Geddes, P.A.'s William P. Bowden, Esq., and Gregory A. Taylor, Esq., and Brown Rudnick LLP's Edward S. Weisfelner, Esq., Jeffrey L. Jonas, Esq., Andrew P. Strehle, Esq., Jeremy B. Coffey, Esq., and Howard L. Siegel, Esq. On May 13, 2014, the U.S. Trustee appointed the Official Committee of TCEH Unsecured Creditors in the Chapter 11 Cases. The TCEH Committee is composed of (a) the Pension Benefit Guaranty Corporation; (b) HCL America, Inc.; (c) BNY, as Indenture Trustee under the EFCH 2037 Notes due 2037 and the PCRBs; (d) LDTC, as Indenture Trustee under the TCEH Unsecured Notes; (e) Holt Texas LTD, d/b/a Holt Cat; (f) ADA Carbon Solutions (Red River); and (g) Wilmington Savings, as Indenture Trustee under the TCEH Second Lien Notes. The TCEH Committee retained Morrison & Foerster LLP as counsel; Polsinelli PC as co-counsel and conflicts counsel; Lazard Freres & Co. LLC as investment banker; FTI Consulting, Inc. as financial advisor; and Charles River Associates as an energy consultant. On Oct. 27, 2014, the U.S. Trustee appointed the Official Committee of Unsecured Creditors representing the interests of the unsecured creditors for EFH, EFIH, EFIH Finance, and EECI, Inc. The EFH/EFIH Committee is composed of (a) American Stock Transfer & Trust Company, LLC; (b) Brown & Zhou, LLC c/o Belleair Aviation, LLC; (c) Peter Tinkham; (d) Shirley Fenicle, as successor-in-interest to the Estate of George Fenicle; and (e) David William Fahy. The EFH/EFIH Committee retained Montgomery, McCracken, Walker & Rhodes, LLP, as co-counsel and conflicts counsel; AlixPartners, LLP, as restructuring advisor; Sullivan & Cromwell LLC as counsel; Guggenheim Securities as investment banker; and Kurtzman Carson Consultants LLC as noticing agent for both the TCEH Committee and the EFH/EFIH Committee. Given the size and complexity of the Chapter 11 Cases, the U.S. Trustee proposed, and the Debtors and the TCEH Committee agreed, to recommend that the Bankruptcy Court appoint a committee to, among other things, review and report as appropriate on fee applications and statements submitted by the professionals paid for by the Debtors' Estates. The Fee Committee is comprised of four members: (a) one member appointed by and representative of the Debtors (Cecily Gooch, Vice President and Special Counsel for Restructuring, Energy Future Holdings); (b) one member appointed by and representative of the TCEH Creditors' Committee (Peter Kravitz, Principal and General Counsel, Province Capital); (c) one member appointed by and representative of the U.S. Trustee (Richard L. Schepacarter, Trial Attorney, Office of the United States Trustee); and (d) one independent member (Richard Gitlin, of Gitlin and Company, LLC). The Fee Committee retained Godfrey & Kahn, S.C. as counsel; and Phillips, Goldman & Spence, P.A. as co-counsel. * * * On Aug. 29, 2016, Judge Sontchi confirmed the Chapter 11 exit Plans of two of Energy Future Holdings Corp.'s subsidiaries, power generator Luminant and retail electricity provider TXU Energy Inc. (the "T-Side Debtors"). The Plan became effective on Oct. 3, 2016. On Aug. 20, 2017, Sempra Energy (NYSE: SRE) announced an agreement to acquire Energy Future Holdings, the indirect owner of 80 percent of Oncor Electric Delivery Company, LLC, operator of the largest electric transmission and distribution system in Texas. Under the agreement, Sempra Energy will pay approximately $9.45 billion in cash to acquire Energy Future and its ownership in Oncor, while taking a major step forward in resolving Energy Future's long-running bankruptcy case. The enterprise value of the transaction is approximately $18.8 billion, including the assumption of Oncor's debt. ENVIVA PARTNERS: Fitch Assigns BB- First Time IDR; Outlook Stable ----------------------------------------------------------------- Fitch Ratings has assigned a first-time long-term Issuer Default Rating (IDR) of 'BB-' and senior unsecured rating of 'BB-/RR4' to Enviva Partners, LP (EVA). The Rating Outlook is Stable. The ratings reflect EVA's revenue stability under its long-term contract profile, future growth opportunities associated with a currently favorable regulatory environment, and supportive development structure. EVA's contracts are primarily take-or-pay and have a weighted average remaining term of 9.8 years as of the second quarter of 2017 (2Q17), which Fitch expects to provide earnings stability in the near term. Furthermore, Fitch believes the regulatory environment in the jurisdictions that EVA serves is fundamentally favorable for the company and the biomass industry, with subsidies offered by governments to encourage renewable energy use. Fitch also views that EVA has a supportive development structure which provides EVA a strong path for near term growth stemming from dropdowns at reasonable multiples. Fitch believes the structure will allow EVA to fund dropdown transactions from its sponsor using a favorable mix of equity and debt financing. The ratings also consider Fitch's concerns regarding EVA's limited size and scale, customer concentration risk, and re-contracting risk. EVA currently exhibits relatively small scale of operations with limited geographic diversity. Fitch generally believes that master limited partnerships (MLP) operating in niche markets like EVA, with expected annual EBITDA less than $150 million in the near term, could be disadvantaged in accessing capital market debt and equity when needed. Fitch also views EVA as having greater exposure to the financial effect of negative industry trends or events within the relatively limited geographic regions in which its customers operate relative to larger master limited partnerships (MLPs) with a greater breadth of operations. The ratings are constrained by customer concentration risk, as EVA generated more than 90% of its revenue from two customers year-to-date (YTD) 2Q17, with the largest end-user, Drax Group Holdings, Ltd., currently possessing a high yield credit profile. Fitch recognizes EVA is currently pursuing numerous other potential contracts with a diverse set of counterparties and that the successful execution of these contracts could provide a catalyst for positive credit actions in the future. In the context of 9.8 years of weighted average life of contracts, Fitch views that re-contacting risk poses as a longer term concern for EVA and is dependent upon the availability of government subsidies for biomass energy at the end of those contracts' life. KEY RATING DRIVERS Long-Term Contract Profile: EVA has entered long-term contracts with its customers, having a weighted average remaining term of 9.8 years and contracted revenue backlog of $5.5 billion as of 2Q17. These contracts are primarily take-or-pay contracts with price fixed for the entire term of the contract subjected to annual inflation-based adjustment and price escalator, which provide a high amount of revenue and cash flow stability. Growing Under Favorable Regulatory Environment: Fitch views that the regulatory environment in the jurisdictions that EVA currently serves is fundamentally favorable for the biomass industry and the company in the near term. EVA's major customers are European utilities and power generators counterparties that are subjected to the EU and UK environmental laws, which aim to reduce greenhouse gas emission for the power sector and meet specific carbon-reduction goals by 2020 through mandating an increase in renewable energy usage. To achieve the mandate, government offers incentives for renewable energy projects, which include subsidizing and funding coal-fired power generation companies such as EVA's top customers to co-fire biomass in their coal plants and/or fully convert their coal plants to biomass plants. In addition, EVA is also expanding its footprint into the Asian markets particularly in Japan and Korea, where similar to EU and UK there are environmental framework in place to incentivize greater use of renewable power generation in the future. EVA and its sponsor have recently announced that they have executed a memorandum of understanding to be the sole supplier to the largest biomass project announced in Japan to supply 650,000 metric tons per year (MTPY) of wood pellets in Japan. Supportive Development Structure: Fitch also views that the Joint Venture (JV) structure that is formed between EVA's sponsor Enviva Holdings, LP and John Hancock Life Insurance provides capital structure benefit to EVA in supporting its growth. Projects are constructed at the JV level and sold to EVA through dropdown transactions. Fitch expects EVA to fund growth spending and any future dropdown activity with a reasonable mix of debt and equity. Fitch forecasts EVA's leverage (as defined by Fitch as Debt/Adj. EBITDA) to remain 3.8x-4.2x in 2017 and below 3.8x in 2018. Customer Concentration Risk: Offsetting the stability of its long-term take-or-pay contracts is customer's concentration, as EVA generated more than 90% of its revenue from two customers as of 2Q17. Fitch expects EVA's earnings to remain concentrated among the major counterparties in the next few years: Drax Power Limited (Drax Group Holdings Ltd- BB+/Stable), Dong Energy (BBB+/Stable), and Lynemouth Power Limited in the near term. Fitch believes these European companies, given the economic incentives, will continue to operate their biomass plants using wood pellets until the end of their contracts' life. Drax currently supplies approximately 8% of UK's electricity and receive government subsidies to generate power on biomass until 2027. It has recently converted three coal-fired plants into biomass plant, which EVA is one of the several wood pellets suppliers for these three biomass plants. Dong Energy, the largest power producer in Denmark, has received state aid approval from the European Commission to convert its Asnaes coal power plant to Biomass plant and has a plan to abandon coal-firing plants by 2023. Lynemouth Power Limited is also a coal-fired power plant that is recently converted into a biomass plant. Limited Size and Scale: EVA exhibits a small scale of operation with expected annual EBITDA less than $180 million in the near term. Given its limited operational and business profile, EVA has a greater exposure to the financial effect of negative industry trends and events relative to larger companies with a greater breadth of operations. Larger companies also have a demonstrated advantage in efficiently accessing debt and equity capital markets to fund growth. Fitch generally believes that MLPs operating in niche markets like EVA, with expected annual EBITDA less than $150 million in the near term, could be disadvantaged in accessing capital market debt and equity when needed. Long-term Recontracting Risk: EVA does not face any significant recontracting risk for its top customers in the near future, given the weighted average duration of the contracts. However, Fitch recognizes this risk, though not an immediate credit concern, will be largely impacted by factors including the availability of government subsidies for producers at the end of those contracts' life, as well as, the competitive landscape of the market. However, Fitch also believes that some of the negative financial impact resulting from the recontracting risk can be partially offset by EVA's plan in expanding to the Japanese and South Korean market. DERIVATION SUMMARY EVA is an MLP which supplies utility-grade wood pellets to major power generators across the globe. EVA's cash flow is supported by long term take-or-pay contracts backed by utilities and power generators which are currently subsidized by their local government to produce electricity using renewable energy sources such as biomass. There are limited publicly traded comparable companies for EVA due to the size of the biomass sector as well as the competitive landscape. EVA exhibits much smaller scale of operations with expected annual EBITDA less than $180 million in the near term, compared to other high yield MLPs such as NGL Energy Partners (B/Negative) or Nustar Energy LP (BB+/Stable). However, EVA maintained a lower leverage than both MLPs, with a latest 12 month (LTM) leverage of 3.9x as of 2Q17. Furthermore, Fitch believes EVA operates in an industry that has a more supportive regulatory environment pushing for greater use of renewable energy, compared to coal producer MLPs such as Foresight Energy LP (B-/Stable). KEY ASSUMPTIONS Fitch's key assumptions within its ratings case for the issuer include: -- Modest growth in revenue and EBITDA driven by growing wood pellet volume, inflation and price adjustment under existing contracts terms; -- EBITDA margin slightly improves in 2018 and 2019 as overhead costs associated with wood pellets transportation decrease upon the completion of dropdown transaction; -- Growth spending funded with a mix of debt and equity; -- Moderate growth in unit distribution in forecast periods. RATING SENSITIVITIES Future Developments That May, Individually or Collectively, Lead to Positive Rating Action -- Significant increase in size and scale of operations with increased geographic diversity; -- Successful execution of dropdowns while maintaining leverage below 3.5x on a sustained basis and distribution coverage sustained above 1.0x; -- Diversification of counterparty exposure, with long-term contracts with solid credit quality counterparties. Future Developments That May, Individually or Collectively, Lead to Negative Rating Action -- Significant credit event with counterparties which significantly impairs cash flow into Enviva; -- Negative ratings actions at Drax Group Holdings Ltd.; -- Change in regulatory environment with regard to treatment and subsidies supporting biomass power generation as renewable generation; -- Capex spending or unfavorable dividend policy which significantly reduces liquidity or increases leverage; -- Increased adjusted leverage beyond 4.0x and distribution below 1.0x for a sustained period of time. LIQUIDITY Near-Term Liquidity Adequate: As of June 30, 2017, EVA had approximately $1 million of unrestricted cash and $100 million available under its revolving credit facility for a total liquidity of $101 million. The revolving credit facility has a maturity date of April 2020. Fitch expects the company to have adequate liquidity to fund its near-term working capital and distribution. The partnership also has $3.1 million in assets held for sale. FULL LIST OF RATING ACTIONS Fitch has assigned the following ratings: Enviva Partners, LP -- Long-term Issuer Default Rating IDR 'BB-'; -- Senior unsecured rating 'BB-/RR4'. ERC TOPCO: S&P Assigns 'B-' Corp Credit Rating, Outlook Stable -------------------------------------------------------------- S&P Global Ratings assigned its 'B-' corporate credit rating to ERC Topco Holdings LLC. The outlook is stable. S&P said, "At the same time, we assigned our 'B-' issue-level rating and '3' recovery rating to the company's first-lien credit facility, which consists of a $30 million revolving credit facility due 2022 and $190 million term loan due 2024. The '3' recovery rating indicates expectations for meaningful (50%-70%; rounded estimate: 60%) recovery in the event of a default." Founded in 2008, ERC is the market leading eating disorder treatment provider with 25 treatment facilities in seven states. The ratings on ERC primarily reflect the company's concentration in the highly competitive and fragmented eating disorder treatment market, small scale (about $140 million in annual revenues), high leverage, and limited ability to generate free cash flow due to rapid capacity expansion. S&P said, "Our stable rating outlook reflects our expectation that ERC will deliver strong revenue growth and margin improvement in the next few years supported by stable reimbursement from commercial payors and consistent capacity increases. That said, rapid expansion will suppress free cash flow generation in the coming years. We also expect the adjusted debt leverage to remain well above 5x for the next few years given the company's growth trajectory and financial sponsor ownership. "We could lower the rating if the ERC's EBITDA level declined by approximately 25% or more from our expectation, such that it is unable to cover its fixed charges with no clear prospects of recovery, which would likely lead us to view the capital structure as unsustainable. Given ERC's growth strategy, we could lower the rating if the company experiences slower-than-expected growth in patient volume, leading to softer margins and even less free cash flow than our forecast of little free cash flow. This will likely be a result of heightened competition or less-than-expected integration benefits as the company builds scale. Another key risk is reimbursement risk and we believe that ERC's small scale and sole focus in one niche segment will make it difficult to absorb weaker reimbursement, which may include a future rate cut. "We could consider raising the rating if the company could grow and sustainably produce positive free cash flow of around $20 million per year. We believe to achieve this, the company will need to improve its business risk by increasing its scale while also achieving and maintaining our base-case EBITDA margin estimate, resulting in consistent free cash flow level of approximately $20 million per year. However, we believe an upgrade is unlikely over the next 12 months." ERIK SAMUEL DE JONG: Court Reduces Landlord's Claim to $240K ------------------------------------------------------------ Landlord Hugo N. Van Vliet filed a proof of claim in Debtors Erik and Daryl De Jong's bankruptcy case for $347,773.46. The Debtors objected to the claim. After considering the arguments presented, Judge Paul Sala of the U.S. Bankruptcy Court for the District of Arizona finds that the claim must be reduced. The parties reached an agreement pursuant to which the Debtors leased the Premises from Landlord. Pursuant to the Lease, the Debtors provided Landlord with a list of items to be repaired. The landlord hired third parties to complete the requested repairs. Despite a provision in the Lease authorizing the Debtors to terminate the Lease in its early days, if the Debtors were unhappy with the repairs, the Debtors did not terminate the Lease and remained on the Premises. While on the Premises, the Debtors were able to operate a successful dairy farm. Certain disputes arose concerning whether Landlord was fulfilling its obligations under the Lease. Despite Landlord's many efforts, the Debtors disputed that Landlord had brought the Premises, including equipment and residences located thereon, into an acceptable condition, and vacated the Premises. Where the primary purpose of the Lease was to allow the Debtors to operate a dairy farm, and where Landlord's alleged failures did not prevent the dairy farm operation, the Debtors breached the Lease by withholding or failing to pay rent and by vacating the Premises. Accordingly, the Debtors are obligated to Landlord for the unpaid rent under the Lease. That claim must be reduced, however, by the amounts that Landlord should have expended to comply with its obligations under the Lease before the Debtors’ breach. The Court, therefore, awards the Landlord the following: Lease damages $310,273.46 Less Scale repair costs [$40,000.00] Residence repair costs [$15,000.00] Rent reduction for destroyed trailer [$15,000.00] Total Claim $240,273.46 A full-text copy of Judge Sala's Memorandum Decision dated Sept. 29, 2017, is available at: http://bankrupt.com/misc/azb2-14-00886-813.pdf The bankruptcy case is In re ERIK SAMUEL & DARYL LYNN DE JONG, Case No. 2:14-BK-00886-PS (Bankr. D. Ariz.). EXCHANGE AVENUE: Case Summary & 17 Largest Unsecured Creditors -------------------------------------------------------------- Debtor: Exchange Avenue Production Co. 310 Mockingbird Lane Weatherford, TX 76086 Type of Business: Exchange Avenue Production Co. is a privately held company in Weatherford, Texas engaged in oil and gas extraction business. Chapter 11 Petition Date: October 4, 2017 Case No.: 17-44107 Court: United States Bankruptcy Court Northern District of Texas (Ft. Worth) Judge: Hon. Mark X. Mullin Debtor's Counsel: Matthias Kleinsasser, Esq. FORSHEY & PROSTOK, L.L.P. 777 Main Street, Suite 1290 Fort Worth, TX 76102 Tel: (817) 877-0135 Fax: (817) 878-4151 E-mail: mkleinsasser@forsheyprostok.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $500,000 to $1 million The petition was signed by Linda Hunt, partner. The Debtor's list of 17 largest unsecured creditors is available for free at http://bankrupt.com/misc/txnb17-44107_creditors.pdf A full-text copy of the petition is available for free at: http://bankrupt.com/misc/txnb17-44107.pdf FIREHOUSE RIBS: U.S. Trustee Unable to Appoint Committee -------------------------------------------------------- An official committee of unsecured creditors has not yet been appointed in the Chapter 11 case of Firehouse Ribs, LLC. Headquartered in Medina, North Dakota, Firehouse Ribs, LLC, filed for Chapter 11 bankruptcy protection (Bankr. D.N.D. Case No. 17-30540) on Aug. 31, 2017, estimating its assets and liabilities at between $100,000 and $500,000. FIRST DATA: Fitch Affirms B+ LongTerm Issuer Default Rating ----------------------------------------------------------- Fitch Ratings has affirmed First Data Corp.'s (FDC) Long-Term Issuer Default Rating (IDR) at 'B+'. The Rating Outlook remains Positive. Fitch has also has affirmed FDC's 1st lien senior secured rating at 'BB+'/'RR1'. In addition, Fitch has upgraded FDC's 2nd lien senior secured debt to 'BB+'/'RR1' from 'BB'/'RR2' based on improved recoveries. Likewise, the senior unsecured debt has been upgraded to 'B'/'RR5' from 'B-'/'RR6'. At June 30, 2017, the company had $18.5 billion in total debt outstanding. KEY RATING DRIVERS CardConnect Acquisition: The company completed the acquisition of CardConnect Corp., a payment processing and technology solutions provider, for a total transaction value, including fees, approximating $775 million in July 2017. CardConnect generated net revenue of $156 million and adjusted EBITDA of $38 million in fiscal 2016. Prior to the acquisition, CardConnect was a processing client of FDC so FDC is expected to lose approximately $20 million in processing revenue due to the acquisition but EBITDA will not be affected. Improved Credit Profile: Fitch estimates gross leverage, pro forma for the CardConnect Corp. acquisition, could approximate 5.8x at the end of 2017 and further decline to just over 5x at year-end 2018. Large Scale: The Global Business Solutions segment serves more than six million merchant locations globally. Existing relationships and a large distribution platform -- partnerships and alliances -- reinforce FDC's ability to sustain its market share, while providing a means to capitalize on emerging technologies (i.e. mobile payments, Clover, and alternative methods of mobile payments). The Global Financial Solutions segment also benefits from established relationships with card issuers and from long-term contracts with high switching costs. Risk of Disintermediation: New payment technologies employed by other participants in the payment ecosystem are a long-term threat to disintermediate FDC. However, a broad and diverse product portfolio, and investment in new technologies are mitigants. Mobile pay companies such as Google Inc. and Apple Inc. decided to work with the payment networks and merchant acquirers. Consolidation Risks: Consolidation could pose a risk for FDC, particularly in the Global Financial Solutions segment, as could changes in regulations. Generally, high barriers to entry in the Global Business Solutions segment are exposed to some erosion through the emergence of new payment technology. Conversely, the Global Financial Solutions segment has much lower exposure to emerging competitors due to FDC's strong position in card processing for large institutions. Recovery Rating Assumptions: The recovery analysis assumes that FDC would be considered a going concern in bankruptcy and that the company would be reorganized rather than liquidated. Fitch assumes a 10% administration claim. Fitch's recovery ratings assigned to the various debt classes are based upon assumed going concern EBITDA of $2.61 billion and a going concern enterprise valuation of 7x. The going concern EBITDA was estimated to be the level of EBITDA FDC generates in a severe recession, while the enterprise evaluation reflects a stressed multiple from FDC's current low double digit multiple and current acquisition multiples in the industry, reduced to stressed levels. The secured revolving credit facility is assumed to be fully-drawn upon default. The 1st and 2nd lien senior secured debt instruments are expected to recover 100% corresponding to 'RR1'. The waterfall also indicates a 19% recovery for the senior unsecured debt, corresponding to 'RR5'. DERIVATION SUMMARY FDC's merchant acquiring business operates in a highly competitive market, although FDC is one of the largest merchant acquirers in the U.S., its market position internationally is not as dominant, although the international market is much more fragmented. The issuer processing segment has less competition but risks losing business to captive competition. Although most customers lack this ability, the risk of loss to captive competition rises as banks consolidate. Switching costs are considerable in the issuer processing segment but less so for the merchant acquiring segment despite multi-year contracts with merchant customers. The scale and technological capability FDC offers its customers is a significant barrier to entry and is considered a credit strength. FDC's closer peers include Vantiv, Inc., Global Payments Inc., Fidelity National Information Services, Inc. (FIS) (BBB/Stable Outlook), Total Systems Services, Inc., and Fiserv, Inc., and to some extent, Visa Inc. and MasterCard Incorporated. KEY ASSUMPTIONS Fitch's key assumptions within Fitch ratings case for the issuer include: -- Revenue growth in the 3% to 3.5% range over 2017 - 2019, which includes some pressure from foreign exchange rates. -- EBITDA growth in the 5% to 6% range over 2017 - 2019. -- Sustained FCF of $1 billion or more aided by significantly lower cash interest expense arising from continued delevering and refinancing activities. Debt reduction is expected to moderate in 2017 due to the CardConnect acquisition but thereafter FDC is assumed to reduce debt by approximately $1 billion or more annually. -- Continued nominal cash taxes over the forecast period given net operating loss carryforwards. -- Capital intensity approximating 5% of revenues. RATING SENSITIVITIES Future Developments That May, Individually or Collectively, Lead to Positive Rating Action -- The ratings could be upgraded if FDC's credit profile continues to strengthen and gross leverage is expected to be maintained around or below 5.0x. -- Future developments that may lead to positive rating action include sustained EBITDA growth and continued reductions in debt from the company's improved FCF position. -- Should FDC reduce senior secured debt as it delevers, there is the potential the unsecured debt could be upgraded prior to the upgrade of the IDR due to improved recoveries. Future Developments That May, Individually or Collectively, Lead to Negative Rating Action -- The ratings could be downgraded if FDC were to experience sustained leverage above 6.0x, material erosion in its market share or if price compression accelerates due to new competitive threats, leading to sustained EBITDA margins at approximately 20% or below, with the FCF margin declining to low single digits. LIQUIDITY Credit Facility: To support liquidity, FDC has a $1.25 billion revolving credit facility that expires in June 2020. At June 30, 2017, the company had not drawn on the facility, and net of $44 million in letters of credit outstanding, approximately $1.2 billion was available. Cash at June 30, 2017 was $493 million, and as of the end of the quarter, $281 million was held outside of the U.S. including cash in a consolidated foreign joint venture. Liquidity is supplemented by a $600 million accounts receivable facility, which expires in June 2020. The accounts receivable facility did not have an outstanding balance at June 30, 2017. The principal financial covenant in the company's credit agreement requires FDC to maintain a consolidated secured leverage ratio of 6.0x. The company has no major maturities until 2020, when a $1.3 billion senior secured term loan matures. Free Cash Flow: FCF has improved materially since the IPO and subsequent refinancings of higher coupon debt, as well as from EBITDA growth. Over the forecast horizon, Fitch expects sustained FCF of $1 billion or more aided by significantly lower cash interest expense arising from continued delevering and refinancing activities. FDC is assumed to reduce debt by approximately $1 billion or more annually. FULL LIST OF RATING ACTIONS First Data Corp. -- Long-Term IDR affirmed at 'B+'; Outlook Positive; -- Senior secured RCF and term loans affirmed at 'BB+'/'RR1'; -- Senior secured notes affirmed at 'BB+'/'RR1'; -- Junior secured notes upgraded to 'BB+'/'RR1' from 'BB'/'RR2';' -- Senior unsecured notes upgraded to 'B'/'RR5' from 'B-'/'RR6'. FIRST FLIGHT: Can Continue Using WF Cash Collateral Until Nov. 30 ----------------------------------------------------------------- Judge Thomas J. Catliota of the U.S. Bankruptcy Court for the District of Maryland inked his approval on a Second Interim Consent Order, between First Flight Limited Partnership and WashingtonFirst Bank, authorizing the Debtor's use of cash collateral for the period beginning on the Oct. 3, 2017 and continuing through Nov. 30, 2017. Prior to the Petition Date, WashingtonFirst Bank extended a $5,650,000 commercial loan to the Debtor, secured by a first-priority duly perfected deed of trust lien and security interest in, to and against a certain real property of the Debtor generally known as Unit 1 shown on the Condominium Plat of First Flight Air Park Condominium, Inc., Washington County, Maryland, and first-priority duly perfected liens in and assignments of the Debtor's right, title and interest in and to all present and future leases and other agreements relating to the Property and all rents. WashingtonFirst Bank is granted a valid, choate, perfected, enforceable and non-avoidable first-priority security interests and liens in, to and against all present and future rents, proceeds, receipts, accounts, accounts receivable, products and profits arising from or as a result of the Property or any other Prepetition Collateral, which will at all times be senior to the rights of the Debtor and will be superior in priority to the security interests and liens of WashingtonFirst Bank existing prior to the Petition Date. As additional adequate protection for WashingtonFirst Bank's interests in the cash collateral, the Debtor will use WashingtonFirst Bank's cash collateral to pay the ongoing expenses of the Property, as set forth in the Budget, and will also use such cash collateral to: (a) pay for adequate insurance for the Property; (b) pay for any real estate taxes owed against the Property; (c) maintain the Property in good repair; and (d) to make adequate protection payment to WashingtonFirst Bank in the amount of $19,863. The Debtor's use of cash collateral is subject to all of the following conditions: (a) The Debtor will timely file all required U.S. Trustee Monthly Operating Reports, and in the event there are any changes in the tenants or the rent amounts for the Property, the Debtor will provide a current rent roll for the Property, copies of any new leases or amendments to leases, and such other information and detail as WashingtonFirst Bank may require. (b) The Debtor will make all payments that the Debtor is required to make to the Internal Revenue Service, the State of Maryland, the Commonwealth of Virginia, and all other taxing authorities with respect to all forms of taxes that come due after the Petition Date, when and as said payments are due. Upon WashingtonFirst Bank's request, the Debtor will immediately supply WashingtonFirst Bank with written documentation evidencing that all such Taxes have been paid. (c) The Debtor shall maintain fire, casualty and other hazard insurance with respect to the Property and the other Collateral, in amounts and under such insurance policies as are acceptable to WashingtonFirst Bank. The Debtor will also immediately take all steps necessary to cause WashingtonFirst Bank to be named as a sole loss payee, mortgagee or additional insured under each such insurance policy. (d) The Debtor will maintain the Collateral in good repair and will perform such maintenance and repairs with respect to the Collateral as is customarily performed in connection with assets of this type. A full-text copy of the Second Interim Consent Order, dated Oct. 2, 2017, is available at https://is.gd/jygRz4 WashingtonFirst Bank is represented by: Dan Press, Esq. Chung & Press, P.C. 6718 Whittier Ave. #200 McLean, VA 22101 About First Flight LP First Flight Limited Partnership, a Virginia limited liability partnership, owns two commercial buildings: 119,166-square-foot office facility & 761,360-square foot industrial(airport/airplane hangars) located at 18540 Showalter Rd. Hagerstown, Maryland. First Flight LP, doing business as Topflight Airpark, filed a Chapter 11 petition (Bankr. D. Md. Case No. 17-18645) on June 25, 2017. The petition was signed by Barrie Peterson, sole member and president of Airpark Holdings, LLC, the general partner of FFLP. At the time of filing, the Debtor disclosed $54.52 million in assets and $14.54 million in liabilities. The case is assigned to Judge Thomas J. Catliota. The Debtor is represented by Morgan William Fisher, Esq., at the Law Offices of Morgan William Fisher, LLC. FUNCTION(X) INC: Bump Digital Will Manage Facebook Pages -------------------------------------------------------- Function(x) Inc. entered into a license agreement with Bump Digital, LLC on Sept. 27, 2017. The License Agreement has a term of one year and provides that Bump will (i) exclusively manage all Facebook pages owned by the Company and (ii) create no less than ten pieces of content per day for the Company's Wetpaint.com website. The agreement provides for termination if performance and revenue standards are not met, if Bump fails to provide the Company with reports relating to revenue received, or if there is a material discrepancy between revenues reported and the calculation of payments due to the Company. The License Agreement also provides for adjustments in favor of the Company if Bump fails to meet performance standards and for adjustments in favor of Bump if Wetpaint.com and/or the ad server are not accessible to Bump, or the Company's photo licensing agreement are not maintained. Bump will pay the Company a monthly fee calculated as 50% of net revenue received by Bump relating to traffic sent to links other than Wetpaint.com from the Company's Facebook pages (excluding revenue derived from content created on Wetpaint.com by the Company) less $10,000 and 50% of the revenue generated on Wetpaint.com. Bump shares in gross revenue from traffic purchased by the Company, without deduction for traffic acquisition costs. About Function(x) Based in New York, FunctionX Inc (NASDAQ:FNCX) -- http://www.functionxinc.com/-- is a diversified media and entertainment company. The Company conducts three lines of businesses, which are digital publishing through Wetpaint.com, Inc. (Wetpaint) and Rant, Inc. (Rant); fantasy sports gaming through DraftDay Gaming Group, Inc. (DDGG), and digital content distribution through Choose Digital, Inc. (Choose Digital). Wetpaint is a media channel reporting original news stories and publishing information content covering television shows, music, celebrities, entertainment news and fashion. Choose Digital is a business-to-business platform for delivering digital content. DDGG is a business-to-business operator of daily fantasy sports. The Company's digital publishing business also includes Rant, which is a digital publisher that publishes original content in over 13 verticals, such as in sports, entertainment, pets, cars and food. On Jan. 27, 2016, Function(x) Inc. changed its name from Viggle Inc. to DraftDay Fantasy Sports, Inc., and changed its ticker symbol from VGGL to DDAY. On June 10, 2016, the Company changed its name from DraftDay Fantasy Sports, Inc., to Function(x) Inc., and changed its ticker symbol from DDAY to FNCX. It now conducts business under the name Function(x) Inc. BDO USA, LLP, in New York, issued a "going concern" qualification on the consolidated financial statements for the year ended June 30, 2016, citing that the Company has suffered recurring losses from operations and at June 30, 2016, has a deficiency in working capital that raise substantial doubt about its ability to continue as a going concern. Function(x) incurred a net loss of $63.68 million for the year ended June 30, 2016, compared to a net loss of $78.53 million in fiscal 2015. As of Dec. 31, 2016, Function(x) had $31.80 million in total assets, $27.94 million in total liabilities, and $3.85 million in total stockholders' equity. FUNCTION(X) INC: Mitchell Nelson Resigns from All Positions ----------------------------------------------------------- Mitchell Nelson, a director, executive vice president and corporate secretary of Function(X) Inc. had advised the Company that he is resigning as a director, officer and employee of the Company and any affiliates, effective as of Sept. 29, 2017, according to a Form 8-K report filed with the Securities and Exchange Commission. About Function(x) Based in New York, FunctionX Inc (NASDAQ:FNCX) -- http://www.functionxinc.com/-- is a diversified media and entertainment company. The Company conducts three lines of businesses, which are digital publishing through Wetpaint.com, Inc. (Wetpaint) and Rant, Inc. (Rant); fantasy sports gaming through DraftDay Gaming Group, Inc. (DDGG), and digital content distribution through Choose Digital, Inc. (Choose Digital). Wetpaint is a media channel reporting original news stories and publishing information content covering television shows, music, celebrities, entertainment news and fashion. Choose Digital is a business-to-business platform for delivering digital content. DDGG is a business-to-business operator of daily fantasy sports. The Company's digital publishing business also includes Rant, which is a digital publisher that publishes original content in over 13 verticals, such as in sports, entertainment, pets, cars and food. On Jan. 27, 2016, Function(x) Inc. changed its name from Viggle Inc. to DraftDay Fantasy Sports, Inc., and changed its ticker symbol from VGGL to DDAY. On June 10, 2016, the Company changed its name from DraftDay Fantasy Sports, Inc., to Function(x) Inc., and changed its ticker symbol from DDAY to FNCX. It now conducts business under the name Function(x) Inc. BDO USA, LLP, in New York, issued a "going concern" qualification on the consolidated financial statements for the year ended June 30, 2016, citing that the Company has suffered recurring losses from operations and at June 30, 2016, has a deficiency in working capital that raise substantial doubt about its ability to continue as a going concern. Function(x) incurred a net loss of $63.68 million for the year ended June 30, 2016, compared to a net loss of $78.53 million in fiscal 2015. As of Dec. 31, 2016, Function(x) had $31.80 million in total assets, $27.94 million in total liabilities, and $3.85 million in total stockholders' equity. G.E.M. HOLDINGS: Case Summary & Largest Unsecured Creditors ----------------------------------------------------------- Lead Debtor: G.E.M. Holdings U.S. Corporation 609 Hoback St, NE Wise, VA 24293 Type of Business: Coal mining Chapter 11 Petition Date: October 4, 2017 Debtor affiliates that simultaneously filed Chapter 11 petitions: Debtor Case No. ------ -------- G.E.M. Holdings U.S. Corporation 17-71352 Clinchco Met Coal, Inc 17-71353 Mill Creek Mining, Inc. 17-71354 Cobalt Coal, LLC 17-71355 Court: United States Bankruptcy Court Western District of Virginia (Roanoke) Judge: Hon. Paul M. Black Debtors' Counsel: Robert Tayloe Copeland, Esq. COPELAND LAW FIRM, P.C. P O Box 1296 Abingdon, VA 24212 Tel: 276 628-9525 Fax: 276-628-4711 E-mail: rtc@rcopelandlaw.com; brw@rcopelandlaw.com Estimated Assets Estimated Liabilities ---------- --------------------- G.E.M. Holdings $0-$50,000 $10 million to $50 million Clinchco Met Coal $0-$50,000 $1 million to $10 million Mill Creek Mining $0-$50,000 $1 million to $10 million Cobalt Coal, LLC $0-$50,000 $1 million to $10 million The petitions were signed by Stephen Moscicki, president of Clinchco Met Coal. A full-text copy of G.E.M. Holdings' petition, along with a list of two unsecured creditors, is available for free at: http://bankrupt.com/misc/vawb17-71352.pdf A full-text copy of Clinchco Met Coal's petition, along with a list of five unsecured creditors, is available for free at: http://bankrupt.com/misc/vawb17-71353.pdf A full-text copy of Mill Creek Mining's petition, along with a list of 20 largest unsecured creditors, is available for free at: http://bankrupt.com/misc/vawb17-71354.pdf A full-text copy of Cobalt Coal's petition, along with a list of 10 unsecured creditors, is available for free at: http://bankrupt.com/misc/vawb17-71355.pdf GALVESTON BAY PROPERTIES: Hires Mercer as Bankruptcy Counsel ------------------------------------------------------------ Galveston Bay Properties, LLC, seeks authorization from the U.S. Bankruptcy Court for the Western District of Texas to employ Kell C. Mercer, PC as Chapter 11 counsel, nunc pro tunc to August 9, 2017. The Debtor requires Mercer to: a. commence the Bankruptcy Case; b. assist in the preparation and filing of the Bankruptcy Schedules and Statements required under the Bankruptcy Code; c. advise the Debtor with respect to its rights, duties and powers in the Bankruptcy Case; d. advise the Debtor regarding compliance with United States Trustee guidelines; e. assist and advise the Debtor in its consultations with creditors and parties in interest relating to the administration of the Bankruptcy Case; f. attend meetings and negotiate with representatives of creditors and other parties in interest; g. assist the Debtor in analyzing the claims of the Debtor's creditors and the Debtor's capital structure and in negotiating with the holders of claims and, if appropriate, equity interests; h. assist the Debtor's investigation of the acts, conduct, assets, liabilities and financial condition of the Debtor and other parties involved with the Debtor, and of the operation of the Debtor's business; i. assist the Debtor in its analysis of, and negotiations with creditors and parties in interest concerning matters related to, among other things, the assumption or rejection of executory contracts, asset dispositions, financing transactions and the terms of a disclosure statement and plan for the Debtor; j. assist and advise the Debtor as to its communications, if any, to the general creditor body regarding significant matters in the Bankruptcy Case; k. represent the Debtor at all necessary hearings and other proceedings; l. review, analyze, and advise the Debtor with respect to applications, orders, statements of operations and schedules filed with the Court; m. negotiate with the key constituents in furtherance of the development of a chapter 11 plan; n. assist the Debtor in preparing pleadings and applications as may be necessary in furtherance of the Debtor's interests and objectives; and o. perform other legal services as may be required and are deemed to be in the interests of the Debtor in accordance with the Debtor's powers and duties as set forth in the Bankruptcy Code. The Debtor will compensate Mercer at $400 per hour. Mercer's customary fees and expenses incurred in connection with this representation are to be paid out of the Debtor's bankruptcy estate or out of the retainer paid to Mercer on August 9, 2017 by ProGas Energy Resources LLC. On the Petition Date, Mercer drew down on that retainer to cover the $1,717 chapter 11 filing fee. A balance of $19,300 remains on deposit in Mercer's IOLTA account. Mercer will also be reimbursed for reasonable out-of-pocket expenses incurred. Kell C. Mercer, Esq., assured the Court that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtor and its estates. Mercer may be reached at: Kell C. Mercer, Esq. Kell C. Mercer, P.C. 1602 E. Cesar Chavez Street Austin, TX 78702 Tel: (512) 627-3512 Fax: (512) 597-0767 E-mail: kell.mercer@mercer-law-pc.com About Galveston Bay Headquartered in New Braunfels, Texas, Galveston Bay Properties LLC is an oil and gas extraction business. Galveston Bay Properties filed for Chapter 11 bankruptcy protection (Bankr. W.D. Tex. Case No. 17-51905) on Aug. 9, 2017, estimating its assets at between $10 million and $50 million and debt at between $1 million and $10 million. The petition was signed by Dan Polk, manager. Judge Craig A. Gargotta presides over the case. Kell C. Mercer, Esq., at Kell C. Mercer, PC, serves as the Debtor's bankruptcy counsel. GIBSON ENERGY: S&P Affirms 'BB' Rating on Announced Refinancing --------------------------------------------------------------- S&P Global Ratings affirmed its 'BB' long-term corporate credit rating on Calgary, Alta.-based midstream energy company Gibson Energy ULC. The outlook is stable. S&P said, "At the same time, S&P Global Ratings affirmed its 'BB' issue-level rating on the company's senior unsecured notes. The '3' recovery rating on the notes is unchanged, and indicates that lenders can expect meaningful (50% to 70%; rounded estimate 65%) recovery if a default occurs. "The affirmation follows Gibson's recent announcement to increase its existing 5.25% senior unsecured notes maturing in 2024 by C$250 million. The proceeds will fully repay the 6.75% US$211 million senior unsecured notes maturing in 2021. We estimate that the refinancing will decrease annual interest costs by about $3.7 million a year and result in total interest savings of about $13 million, funds the company can use toward reducing leverage or funding capital expenditures. In addition, the refinancing extends Gibson's debt maturity profile and adds financing flexibility, which we believe is important considering the company's growth program to build out its infrastructure business segment. "The stable outlook reflects our view that Gibson will continue to expand the more stable infrastructure business segments through organic growth, and that the proceeds from the U.S. environmental services business will pay down debt and finance the capital program. We expect debt-to-EBITDA of 3.25x-3.75x and FFO-to-debt of 20%-25% under our base-case forecast. "A downgrade could occur if debt-to-EBITDA deteriorates and stays above 3.5x or FFO-to-debt falls consistently below 20%, which could result from increased leverage from aggressive financing of growth and acquisition initiatives or a decline in cash flows from weaker commodity price-sensitive businesses. "We could upgrade Gibson if the financial risk profile improves to intermediate from significant. This could occur if forecast debt-to-EBITDA stays at about 2.5x and FFO-to-debt above 30%, which could result from continued deleveraging either through non-core asset sales or internal cash flows; or increased cash flows as the company expands its stable infrastructure business segment." GILDED AGE: Requires Access to Cash for October 2017 Expenses ------------------------------------------------------------- Gilded Age Properties, LLC, seeks authorization from the U.S. Bankruptcy Court for the District of Rhode Island to continue its use of the cash collateral of Webster Bank, N.A., for an additional 30 days in order to continue the operation of its business. The proposed Budget for the month of October 2017 provides total operating expenses of approximately $16,828. Webster Bank has extended a $712,500 mortgage loan to the Debtor on the Bellevue Property and another $712,500 mortgage loan on the Freebody Property. As of May 22, 2017, the balance due under the loan documents was $1,370,716. The Debtor asserts that Webster Bank's claims in the Debtor's cash collateral will be entitled to protection based upon the amount of the cash generated through rents for ongoing operations. Accordingly, the Debtor seeks the use of cash collateral conditioned upon the Debtor's payment of post-petition mortgage payments, real estate taxes and municipal charges on the Properties. A full-text copy of the Debtor's Motion, dated Sept. 28, 2017, is available at https://is.gd/ZBLUD3 About Gilded Age Properties Gilded Age Properties, LLC, owns and operates two properties: a commercial rental property located at 117 Bellevue Avenue in Newport, Rhode Island and a residential apartment building located at 38-40 Freebody Street in Newport, Rhode Island. Gilded Age Properties filed a Chapter 11 petition (Bankr. D.R.I. Case No. 17-10738) on May 4, 2017. The petition was signed by Peter M. Iascone, member. At the time of the filing, the Debtor estimated assets and liabilities between $1 million and $10 million. The case is assigned to Judge Diane Finkle. The Debtor's counsel is William J. Delaney, Esq., at DarrowEverett LLP, in Providence, Rhode Island. GREAT BASIN: Jeffrey Rona Quits as Chief Financial Officer ---------------------------------------------------------- Jeffrey Rona resigned from his position as chief financial officer of Great Basin Scientific, Inc. to pursue another business opportunity, according to a Form 8-K report filed by the Company with the Securities and Exchange Commission. The resignation will be effective Oct. 6, 2017. About Great Basin West Valley City, Utah-based Great Basin Scientific Inc. -- http://www.gbscience.com/-- is a molecular diagnostics company that commercializes breakthrough chip-based technologies. The Company is dedicated to the development of simple, yet powerful, sample-to-result technology and products that provide fast, multiple-pathogen diagnoses of infectious diseases. The Company's vision is to make molecular diagnostic testing so simple and cost-effective that every patient will be tested for every serious infection, reducing misdiagnoses and significantly limiting the spread of infectious disease. Great Basin reported a net loss of $89.14 million on $3.04 million of revenues for the year ended Dec. 31, 2016, compared to a net loss of $57.89 million on $2.14 million of revenues for the year ended Dec. 31, 2015. As of March 31, 2017, Great Basin had $29.24 million in total assets, $59.10 million in total liabilities, and a total stockholders' deficit of $29.86 million. The Company's independent accountants, BDO USA, LLP, in Salt Lake City, Utah, expressed "substantial doubt" about the Company's ability to continue as a going concern noting that the Company has incurred substantial losses from operations, has negative operating cash flows and has a net capital deficiency. GST AUTOLEATHER: Business as Usual While in Chapter 11 ------------------------------------------------------ GST AutoLeather, Inc., on Oct. 3, 207, disclosed that it has filed a voluntary petition for relief under chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware. The Company has obtained a commitment from its senior secured lenders for a $40 million debtor-in-possession facility, the proceeds of which will be used to fund ongoing business operations. This facility will allow GST to continue business as usual during the reorganization process, while pursuing a court-supervised going concern sale, commonly referred to as a "363 Sale". Chief Executive Officer Dennis Hiller said, "After working with our advisors to review a range of strategic alternatives, the proposed strategy represents the best solution to ensure continuity of supply to our customers, maximize value for all stakeholders and position the Company for long-term success." Mr. Hiller went on to say, "I would especially like to thank our customers, suppliers, employees and Senior Lenders for supporting us through this time as we work to improve our capital structure and enhance value." The Company and its Senior Lenders are negotiating the terms of an acquisition of the Company by its Senior Lenders. This would serve as a backstop in the "363 Sale" and will pave the path for the Company to exit chapter 11 and maintain the business as a going concern. The Company has set up a toll-free hotline to answer questions about this process. The hotline can be accessed by calling 844-308-4104 (International - 503-520-4435). Additional information and FAQ's can be found at http://dm.epiq11.com/GST GST is utilizing Lazard Middle Market LLC and Alvarez & Marsal North America, LLC as its financial advisors and Kirkland & Ellis LLP as its legal advisor to assist the Board of Directors and senior management with the restructuring process. The Senior Lenders have retained FTI Consulting, Inc. as their financial advisor and Paul Hastings LLP as their legal advisor. About GST AutoLeather, Inc. Headquartered in Southfield, Michigan, GST was founded in 1933, then known as Garden State Tanning, initially operated as a tanning company that processed leather for the upholstery and garment industries. The Company entered the automotive industry in 1946. As leather upholstery became the go-to for furniture, airplanes, and automobiles, the Company shifted its focus 100% to automotive leather manufacturing. The Company began expanding internationally throughout the 1990s, taking advantage of the significant consolidation in the automotive supplier industry. Specifically, the Company opened a leather sourcing team in South America, opened a state-of-the-art cutting facility in Saltillo, Mexico. The Company's expansion strategy continued throughout the 2000s, when the Company transitioned operations from the United States to Mexico and opened additional facilities in Shanghai and Nuevo Laredo, Mexico. In January 2011, the Company acquired Seton Company, a major supplier of upholstery leather, cementing its place as one of the largest automotive leather manufacturers in the world. Through the acquisition, the Company acquired Seton's operations in North America, China, South Korea, Europe, and South Africa. In the North American, Chinese, Japanese, and Korean markets, the Company continued to market their products as the GST brand. In the European and South African markets, products are marketed under the name Seton AutoLeather, a GST AutoLeather Company. GST AUTOLEATHER: Case Summary & 30 Largest Unsecured Creditors -------------------------------------------------------------- Lead Debtor: GST AutoLeather, Inc. 20 Oak Hollow Drive, Suite 300 Southfield, MI 48033 Type of Business: The Debtors, together with their non-Debtor affiliates, are a global designer and manufacturer of automotive leather components. GST initially operated as a leather tannery providing leather to the upholstery and garment industries. GST did not enter the automotive industry until 1946. The Company operates across four continents and maintains its headquarters in Southfield, Michigan. As of the Petition Date, the Company employs approximately 5,600 people worldwide, including the United States, Mexico, Japan, China, Korea, Germany, Hungary, South Africa, and Argentina. The Company supplies leather to virtually every major OEM in the automotive industry, including Audi, BMW/Mini, Daimler, Fiat Chrysler, Ford, General Motors, Hyundai, Honda, Porsche, PSA, Nissan, Kia, Toyota and Volkswagen. In 2016, the Company had net sales of approximately $540 million. Web site: http://www.gstautoleather.com Chapter 11 Petition Date: October 3, 2017 Debtor affiliates that simultaneously filed Chapter 11 petitions: Debtor Case No. ------ -------- GST AutoLeather, Inc. (Lead Debtor) 17-12100 GST AutoLeather HoldCo Corp. 17-12101 GST AutoLeather Cayman II Ltd. 17-12102 GST AutoLeather Cayman I Ltd. 17-12103 GST Innovations, LLC 17-12104 Strategic Financial LLC 17-12105 Court: United States Bankruptcy Court District of Delaware (Delaware) Judge: Hon. Laurie Selber Silverstein Debtors' Local Bankruptcy Counsel: Laura Davis Jones, Esq. Timothy P. Cairns, Esq. Joseph M. Mulvihill, Esq. PACHULSKI STANG ZIEHL & JONES LLP 919 North Market Street, 17th Floor P.O. Box 8705 Wilmington, Delaware 19899-8705 (Courier 19801) Tel: (302) 652-4100 Fax: (302) 652-4400 E-mail: ljones@pszjlaw.com tcairns@pszjlaw.com jmulvihill@pszjlaw.com Debtors' General Bankruptcy Counsel: James H.M. Sprayregen, P.C. Ryan Blaine Bennett, Esq. Alexandra Schwarzman, Esq. Benjamin M. Rhode, Esq. KIRKLAND & ELLIS LLP KIRKLAND & ELLIS INTERNATIONAL LLP 300 North LaSalle Chicago, Illinois 60654 Tel: (312) 862-2000 Fax: (312) 862-2200 E-mail: james.sprayregen@kirkland.com ryan.bennett@kirkland.com alexandra.schwarzman@kirkland.com benjamin.rhode@kirkland.com Debtors' Financial Advisor: LAZARD MIDDLE MARKET, LLC 600 Fifth Avenue New York, NY 10020 Tel: (212) 758-8575 Fax: (212) 758-3833 Web site: www.lazard.com Debtors' Restructuring Advisor: Jonathan Hickman, CRO ALVAREZ & MARSAL NORTH AMERICA, LLC 1000 Town Center, Suite 750 Southfield, MI 48075 Tel: (248) 936-0800 Fax: (248) 936-0801 Web site: www.alvarezandmarsal.com Debtors' Notice & Claims Agent: EPIQ BANKRUPTCY SOLUTIONS, LLC Web site: http://dm.epiq11.com/#/case/GAL Estimated Assets: $100 million to $500 million Estimated Debts: $100 million to $500 million The petition was signed by Eric Evans, senior vice president and chief financial officer. A full-text copy of GST AutoLeather, Inc.'s petition is available for free at: http://bankrupt.com/misc/deb17-12100.pdf Debtors' List of 30 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Triangle Capital Corporation Mezzanine Debt $31,860,896 ATTN: Jeffrey A. Dombcik Facility 3700 Glenwood Avenue, Suite 530 Raleigh, NC 27612 Tel: 919 719-4770 Email: jdombcik@tcap.com Alcentra Capital Corporation Attn: Scott Gold 200 Park Avenue, 7th Floor New York, NY 10166 Scott Gold Tel: 212 922-8240 Email: scott.gold@alcentra.com Counsel McGuireWoods LLP Attn: Anne E. Croteau 434 Fayetteville Street, Suite 2600 Raleigh, NC 27061 McGuire Woods LLP Attn: Douglas M. Foley 2001 K Street N.W., Suite 400 Washin ton, DC 20006 Americana De Cueros Trade Debt $6,044,464 Attn: Vincente Lahud General Manager Blvd. Juan Jose Torres Landa Pte. No. 4914 Guanajuato Leon, 37438 Mexico Tel: 52 47-7778-1206 Email: vincente.lahud@cuerocentro.com.mx Curtiembre Arlei Sa Trade Debt $4,162,427 Attn: Viviana Leiser, Owner Bouchard 2840 -Lanus Buenos Aires, 1824 Argentina Tel: 54 11-4001-1102 Email: leiser.viviana@arlei.com JBS S/A Trade Debt $2,476,358 Attn: Eduardo Lampert Manager Global Auto Sales Av. Marginal Direita do Tiete, 500 Sao Paolo, 05118 Brazil Tel: 55 51-9352-6912 Email: eduardo.lampert@jbsleather.com Tyson Fresh Meats, Inc. Trade Debt $2,299,381 Attn: Stephen Stouffer, President 800 Stevens Port Drive Dakota Dunes, SD 57049 United States Tel: 605 235-2061 Fax: 605 235-2068 Email: rony.ayala@tyson.com Stahl De Mexico S.A De C.V. Trade Debt $1,860,668 Attn: Alex Campbell Manager Global Auto Sales Industrias Qui'micas 105 Zona Industrial Toluca Edo. De Mexico, 50071 Mexico Tel: 52 722-275-8600 Fax: 52 722-423-3024 Email: alexander.campbell@stahl.com Lanxess Energizing Chemistry Trade Debt $1,033,716 Attn: Sarah Drayna Manager Global Auto Sales 111 RIDC Park West Drive Pittsburgh, PA 15275 United States Tel: 414 559-1104 Email: sarah.drayna@lanxess.com Quaker Color Trade Debt $883,890 Attn: Kenneth Brown, President 201 South Hellertown Ave Quakertown, PA 18951 United States Tel: 215 536-3520 Fax: 215 536-2437 George H. Elliot Company Trade Debt $691,634 Attn: Kevin Ryan, President 6502 Joliet Rd, #F Countryside, IL 60525 United States Tel: 708 352-2122 Email: sales@elliotthide.com National Beef Packing Co. LP Trade Debt $651,132 Attn: Timothy Klein Chief Executive Officer 12200 N. Ambassador Drive Suite 500 Kansas City, MO 64163 United States Tel: 800 499-2333 Fax: 816 713-8863 Tannin Mexico Sa De Cv Trade Debt $593,113 Attn: Goetz Hagen, President Blvd. San Crispin 130 Fracc. Ind. San Crispin Guanajuato Leon, 37443, Mexico Tel: 52 477-770-9499 Fax: 978 532-5536 Muller Textiles Inc. Trade Debt $535,964 Attn: Erik Schleicher, Principal 3221 W. Big Beaver Road Suite 109 Troy, MI 48084 United States Tel: 248 458-0039 Fax: 888 384-2122 Email: erik.schleicher@mullertextiles.com VFM, LLC Trade Debt $326,049 Attn: Gary Young President & CEO 1193 Atkinson Hill Avenue Bardstown, KY 40004 United States Tel: 502 350 0314 Email: gary@vfmllc.net Ontario Die International S Trade Debt $301,852 A De Cv Manager Global Auto Sales Blvd. Hidalgo 2315 Co. Valte De Sol Colonia Tablas De La Virgen Guanajuato Leon, 37140 Mexico Tel: 810 987-5060 Email: mgeffros@ontariodie.com FXI Foamex Trade Debt $208,243 Tannin Corporation Trade Debt $185,533 Email: john.thompson@tannincorp.com Cajas Y Corrugados S.A. De C.V. Trade Debt $168,944 WISTA GmbH Trade Debt $166,343 TFL Mexicana Sa De Cv Trade Debt $148,378 Email: henrik.pedersen@tfl.com Zschimmer & Schwarz (Chemtan) Trade Debt $137,470 Email: m.mueller-mross@zschimmerschwartz.com American KNW, Inc. Trade Debt $131,670 Dystar LP Trade Debt $123,788 Genfort Trade Debt $106,362 Email: robert.tsai@genfort.com.tw Foreign Domestic Chemicals Trade Debt $103,000 Email: sam0226@hotmail.com Officine Di Cartigliano S.P.A. Trade Debt $78,353 Toroza Quimica Sa De Cv Trade Debt $75,827 Email: arturorb@toroza.com.mx CH Robinson Worldwide Trade Debt $73,561 Detroit Technologies, Inc. Trade Debt $58,816 Pratt Industries de Trade Debt $46,282 Monterrey Bernardo RL de Galaxy/Spectron Remediation Undetermined Remediation Group LLC Claims Group Attn: Dave Fennimore Project Coordinator 748 Springdale Drive, Suite 150 Exton, PA 19341 Tel: 610 524-9466 Email: dfennimore@earthdatane.com Counsel Saul Ewing 3800 Centre Square West 1500 Market Street Philadelphia, PA 19102 Carl B. Everett, Counsel Tel: 215 972-7171 Email: Ceverett@saul.com GST AUTOLEATHER: To Sell to Lenders Absent Viable Offer ------------------------------------------------------- Auto-supplier GST AutoLeather, Inc., and its affiliates sought Chapter 11 bankruptcy protection with plans to sell the business to its lenders absent viable offers in an 11 U.S.C. Sec. 363 process. The Company operates across four continents and maintains its headquarters in Southfield, Michigan. It employs approximately 5,600 employees worldwide, including the United States, Mexico, Japan, China, Korea, Germany, Hungary, South Africa, and Argentina. The Company supplies leather to virtually every major OEM in the automotive industry, including Audi, BMW/Mini, Daimler, Fiat Chrysler, Ford, General Motors, Hyundai, Honda, Porsche, PSA, Nissan, Kia, Toyota and Volkswagen. In 2016, the Company had net sales of approximately $540 million. The Debtors, together with their non-debtor affiliates, are a global designer and manufacturer of automotive leather components. Notwithstanding the Company's global reach and strong customer relationships, the Company's financial performance has been declining in recent years as a result of, among other things, market-related selling price reductions, a decrease in the leather content of certain new vehicle production, and issues associated with certain new customer launches in Europe. Additionally, the Company has made significant cash outlays in recent months in response to out-of-contract demands, including pricing, from a critical supplier and related working capital investments undertaken to mitigate the risk of potential supply chain disruption to its customers caused by such supplier actions and demands. Prior to the Company's recent liquidity concerns, the Company was actively exploring a sale of the business. In 2015, the Company received an unsolicited, non-binding offer to purchase the Company from a foreign strategic buyer. Ultimately, the Company and the foreign buyer were unable to agree on terms, including transaction value and structure. Discussions ended in June 2016. The following month, the Company launched a broader marketing process led by Lazard Middle Market LLC, the Debtors' proposed investment banker. As part of this process, Lazard reached out to more than 90 potential strategic and financial buyers. More than 40 of these potentially interested parties signed nondisclosure agreements with the Company and received confidential information regarding the Company, including a confidential information memorandum prepared by the Company and its advisors. Ten of these parties submitted preliminary non-binding indications of interest, of which nine participated in management meetings in October 2016. The Company's efforts resulted in the receipt of four nonbinding letters of intent, and discussions with another potential strategic buyer that did not previously submit a preliminary non-binding indication of interest. Unfortunately, during this time period, the Company's financial performance declined, and potential buyers either lowered their valuations, withdrew their bids, or opted to wait to see if the Company's performance improved. As of late May 2017, the Company was in discussions with three parties, but concerns about the Company's performance caused two parties to drop out of the process in June and July. The Company was subsequently able to reengage one of those parties when another potential strategic buyer expressed interest in purchasing the Company. Discussions advanced toward executing binding documentation with the two potential buyers throughout late summer 2017, but neither potential buyer provided a binding offer for the purchase of the Company. Without a viable purchaser and in the face of increasingly constrained liquidity, the Debtors engaged with the lenders under the secured credit facility regarding their willingness to fund an in-court marketing process and provide a stalking horse bid that would establish a baseline value for the Debtors' assets against which the Debtors could solicit higher or better offers from alternative buyers. These discussions and subsequent negotiations resulted in the Debtors and Secured Lenders reaching mutual and agreeable terms for a $40 million debtor in possession financing facility that will provide sufficient liquidity to fund these chapter 11 cases. Additionally, the Debtors and Secured Lenders are finalizing the terms of an acquisition of the Company by the Senior Lenders, in the event the Debtors' Section 363 sale process is unable to produce a purchaser acceptable to the Debtors and the Secured Lenders. The Debtors will file a motion for approval of bidding procedures and stalking horse protections in the near term. The Debtors commenced these chapter 11 cases to obtain sufficient capital to continue operating as a going concern and maximize value for all stakeholders pursuant to a sale transaction. Prepetition Capital Structure As of the Petition Date, the principal amount of the Debtors' consolidated funded debt obligations totaled approximately $196 million, comprised of: (a) approximately $164 million of obligations under the Senior Credit Facility pursuant to a Credit Agreement by and among GST, as borrower, Royal Bank of Canada, as administrative agent, and the lenders from time to time party thereto; and (b) approximately $32 million of obligations under the Mezzanine Loan under a Loan Agreement by and among GST, as borrower, and the lenders from time to time party thereto, pursuant to which the Company incurred approximately $30 million of initial principal indebtedness. Certain of the Debtors are party to a factoring facility with Branch Banking and Trust Company, pursuant to which BB&T purchases certain of the Debtors' receivables in North America. GST and three non-debtor foreign affiliates are parties to a Debt Confirmation Agreement dated as of September 20, 2017 by and between Richina Leather Industrial Co., Ltd. ("RLI"), Zhongshan GST Autoleather Co., Ltd. ("GST Zhongshan"), GST (Shenyang) Autoleather Co., Ltd. ("GST Shenyang"), GST (Jiaxing) Autoleather Co., Ltd. ("GST Jiaxing" and, together with GST Zhongshan and GST Shenyang, the "PRC Entities"), and GST (the "Debt Confirmation Agreement"), pursuant to which RLI, a supplier of leather finishing services for the Company's Chinese operations, agreed to continue providing goods and services on credit not to exceed $7,000,000. RLI is the Company's sole supplier of finishing services in China and integral to the Company's Chinese operations. The Debt Confirmation Agreement is secured by mortgages on certain equipment of GST Zhongshan and GST Shenyang and pledges of equity in each of the PRC Entities. As of the Petition Date, the Company has utilized approximately $4.1 million of the total outstanding credit available under the Debt Confirmation Agreement. The majority of the Company's outstanding equity is owned by Advantage Partners. A minority portion of the Company's outstanding equity is owned by the Pacific Alliance Group (PAG) and certain members of management, who made equity investments in the Company. About GST AutoLeather Headquartered in Southfield, Michigan, GST AutoLeather, Inc., was founded in 1933, then known as Garden State Tanning, initially operated as a tanning company that processed leather for the upholstery and garment industries. The Company entered the automotive industry in 1946. As of Oct. 3, 2017, the Company employs approximately 5,600 people worldwide, including the United States, Mexico, Japan, China, Korea, Germany, Hungary, South Africa, and Argentina. The Company supplies leather to virtually every major OEM in the automotive industry, including Audi, BMW/Mini, Daimler, Fiat Chrysler, Ford, General Motors, Hyundai, Honda, Porsche, PSA, Nissan, Kia, Toyota and Volkswagen. GST AutoLeather, Inc. and five of its affiliates filed voluntary petitions for relief under chapter 11 of the United States Bankruptcy Code (Bankr. D. Del. Lead Case No. 17-______) on Oct. 3, 2017. The Company has obtained a commitment for a $40 million debtor-in-possession facility from its existing senior lenders. This facility will allow GST to continue operations without interruption during the reorganization process, including payment of vendors and suppliers for all goods and services provided following commencement of the cases, while its management team and advisors focus on a sale of the Company. The Hon. Laurie Selber Silverstein is the case judge. The Debtors tapped Pachulski Stang Ziehl & Jones LLP as local bankruptcy counsel; KIRKLAND & ELLIS LLP as general bankruptcy counsel; Lazard Middle Market, LLC, as financial advisor; Alvarez & Marsal North America, LLC, as restructuring advisor; and Epiq Bankruptcy Solutions, LLC, as claims and noticing agent. GULFMARK OFFSHORE: Hughes Hubbard Advises DNB in Exit Financing --------------------------------------------------------------- Bankrupt shipping firm GulfMark Offshore, Inc. and GulfMark Rederi AS, a wholly-owned subsidiary of the company, entered into a commitment letter with DNB Markets, Inc., DNB Capital LLC and Hayfin DLF II Luxco 2 S.A.r.l. regarding the terms of the provision of certain credit facilities in connection with the confirmation of the Company's proposed plan of reorganization filed in connection with its chapter 11 case pending in the United States Bankruptcy Court for the District of Delaware. Hughes Hubbard & Reed represented DNB Bank as DIP Lender and Exit Facility provider. Hughes Hubbard & Reed's Christopher Kiplok and Anson Frelinghuysen advised. In connection with the exit financing, GulfMark's president and chief executive officer, Quintin Kneen, said DNB "led a heroic effort." A copy of the court filing is available at: http://bankrupt.com/misc/Gulfmark_Offshore_Court_Filing.pdf About Gulfmark Offshore GulfMark Offshore, Inc., a Delaware corporation, was incorporated in 1996. The Company provides offshore marine support and transportation services primarily to companies involved in the offshore exploration and production of oil and natural gas. The Company's vessels transport materials, supplies and personnel to offshore facilities, and also move and position drilling and production facilities. The majority of the Company's operations are conducted in the North Sea, offshore Southeast Asia and offshore the Americas. The Company currently operates a fleet of 73 owned or managed offshore supply vessels, or OSVs, in the following regions: 30 vessels in the North Sea, 13 vessels offshore Southeast Asia, and 30 vessels offshore the Americas. GulfMark Offshore filed for Chapter 11 bankruptcy protection (Bankr. D. Del. Case No. 17-11125) on May 17, 2017. Quintin V. Kneen, president and chief executive officer, signed the petition. Mark D. Collins, Esq., Zachary I. Shapiro, Esq., Brett M. Haywood, Esq. and Christopher M. De Lillo, Esq., of Richards, Layton & Finger, P.A., as well as Gary T. Holtzer, Esq., Ronit J. Berkovish, Esq., and Debora A. Hoehne, Esq., of Weil Gotshal & Manges LLP serve as counsel to the Debtor. The Debtor has also tapped Blank Rome LLP as corporate counsel; Alvarez & Marsal North America, LLC as financial advisor; Evercore Group L.L.C. as investment banker; Ernst & Young LLP as restructuring consultant; KPMG US LLP as auditor and tax consultant; and Prime Clerk LLC as claims and noticing agent. GV HOSPITAL: PCO Submits Third Interim Report --------------------------------------------- Susan N. Goodman, the patient care ombudsman for GV Hospital Management, LLC, submits a third interim report of her evaluation regarding the patient care provided at Green Valley Hospital. The PCO observed an operative procedure, confirming that staff, supplies, and quality processes were all in place. The surgeon, anesthesia, and OR staff denied staffing concerns. Limited supply concerns were reported by OR staff, sterile processing, and anesthesia. Senior clinical and materials management leadership attributed the supply challenges to operational issues. Products needed on the day of PCO's visit were borrowed from another hospital. Materials leadership and the OR team reported that OR staff was engaged in supplemental supply acquisition efforts through third-party sourcing companies for some supplies that have been difficult to obtain post-bankruptcy. The PCO will remain engaged in monitoring OR supply challenges. While the clinical staff is reporting some measure of bankruptcy fatigue and closure fears, they continue with positive reports of feeling informed about the bankruptcy process from leadership. The quality of patient care continues without material compromise or material decline. The PCO will continue to monitor quality and risk data remotely during the interim period between reports. To avoid further staff worry, the PCO set the expectation that one final site visit may be necessary before plan confirmation, depending on the timing of the Court hearings. A full-text copy of the PCO's Third Interim Report dated Sept. 25, 2017, is available at: http://bankrupt.com/misc/azb4-17-03351-442.pdf A full-text copy of the PCO's Second Interim Report dated July 24, 2017, is available at: http://bankrupt.com/misc/azb17-03351-276.pdf About GV Hospital Management LLC Green Valley Hospital -- http://www.greenvalleyhospital.com/-- is a licensed and general acute care hospital open 24 hours a day, seven days a week. It cost more than $75 million to construct and equip. The facility opened in May of 2015. The hospital is a 49-bed general acute care hospital with a 12-bed emergency department. The hospital currently has 337 employees and has credentialed over 232 physicians on its medical staff. GV Hospital Management, LLC dba Green Valley Hospital, and its affiliates Green Valley Hospital, LLC dba Green Valley Hospital and GV II Holdings, LLC, filed Chapter 11 petitions (Bankr. D. Ariz. Case Nos. 17-03351, 17-03353 and 17-03354, respectively) on April 3, 2017. Grant Lyon, chairman of the Board, signed the petitions. The cases are jointly administered. GV Hospital Management estimated $50 million to $100 million in assets and liabilities. Green Valley Hospital estimated $1 million to $10 million in assets and up to $100 million in liabilities. GV II Holdings estimated under $1 million in assets and $50 million to $100 million in liabilities. The cases are assigned to Judge Scott H. Gan. The Debtors are represented by S. Cary Forrester, Esq., and John R. Worth, Esq., at Forrester & Worth, as bankruptcy counsel. The Debtors hired Edwards Largay Mihaylo & Co., PLC as tax accountant. The Office of the U.S. Trustee on May 17 appointed an official committee of unsecured creditors. The committee hired Perkins Coie LLP as bankruptcy counsel. Susan N. Goodman, RN JD, was appointed Patient Care Ombudsman for GV Hospital Management, LLC. GYMBOREE CORP: Taps Deloitte & Touche for Fresh Start Accounting ---------------------------------------------------------------- The Gymboree Corporation and its affiliates seek approval from the US Bankruptcy Court for the Eastern District of Virginia, Richmond Division, to employ Deloitte & Touche LLP as fresh start accounting planning and implementation advisor. Services Deloitte & Touche will provide are: (i) advise the Debtors as they plan and prepare for recording the effects of their plan of reorganization and the adoption of the revaluation of their assets and liabilities under fresh start accounting, which includes commenting on the Debtors' accounting group's overall plan to account for the Debtors' emergence from chapter 11; (ii) advise the Debtors' management as they adopt fresh start accounting, which includes commenting on the Debtors' presentation consisting of the closing predecessor balance sheet, plan adjustments, fresh start accounting adjustments, and the successor entity financial statements, as well as commenting on other bankruptcy- related financial statement disclosures prepared by the Debtors; and (iii) advise the Debtors on potential reporting and systems needs in periods subsequent to their implementation of fresh start accounting. Deloitte & Touche's applicable hourly billing rates are: Partner/Principal $695-795 Managing Director $575-795 Senior Manager Specialist $550 Senior Manager / Senior Vice President $535-645 Manager / Vice President $465 Associate / Senior Associate $375-425 Adam R. Siegel, a partner of the firm of Deloitte & Touche LLP, attests that Deloitte & Touche and firm's engagement partners, principals and managing directors are "disinterested persons" as that term is defined in section 101(14) of the Bankruptcy Code, as modified by section 1107(b) of the Bankruptcy Code. The Firm can be reached through: Adam R. Siegel DELOITTE & TOUCHE LLP 30 Rockefeller Plaza New York, NY 10112-0015 Phone: 212-492-4000 Fax: 212-489-1687 About The Gymboree Corp. The Gymboree Corporation is a children's apparel retailer in North America, with 1,291 retail stores as of Jan. 28, 2017, operating under three brands: Gymboree; Janie & Jack (a higher-end offering launched in 2002); and Crazy 8 (a value-oriented line launched in 2007). The Company operates online stores at http://www.gymboree.com/, http://www.janieandjack.com/and http://www.crazy8.com/ In October 2010, Gymboree was acquired by Bain Capital Private Equity, LP and certain of its affiliated investment funds or investment vehicles managed or advised by it -- Sponsor -- for approximately $1.8 billion. The Gymboree Corp. and seven affiliates each filed a Chapter 11 voluntary petition (Bankr. E.D. Va. Lead Case No. 17-32986) on June 11, 2017. James A. Mesterharm, chief restructuring officer, signed the petitions. The cases are pending before the Honorable Keith L. Phillips. Gymboree had $755.5 million in assets and $1.36 billion in total liabilities as of March 14, 2017. Kirkland & Ellis LLP, is the Debtors' bankruptcy counsel. Kutak Rock LLP is the Debtors' local bankruptcy counsel. Munger, Tolles & Olson LLP is the Debtors' special counsel. Lazard Freres & Co. LLC is the investment banker. AlixPartners, LLP is the restructuring advisor. Prime Clerk LLC is the claims agent. Counsel to the Term Loan Agent and the DIP Term Loan Agent are Milbank, Tweed, Hadley & McCloy LLP; and McGuireWoods LLP. Rothschild & Co. also serves as advisor to the Term Loan Agent. Bain Capital Partners is represented by Weil Gotshal & Manges LLP. Counsel to the DIP ABL Administrative Agent are Morgan, Lewis & Bockius LLP; and Hunton & Williams LLP. Counsel to the DIP ABL Term Agent are Choate, Hall & Stewart LLP; and Whiteford Taylor Preston, LLP. The indenture trustee for the Debtors' senior unsecured notes is Deutsche Bank Trust Company Americas. Counsel to the ad hoc group of senior unsecured noteholders is Akin Gump Strauss Hauer & Feld LLP. Judy A. Robbins, U.S. Trustee for Region 4, on June 22, 2017, appointed seven creditors to serve on the official committee of unsecured creditors in the Chapter 11 case of Gymboree Corp. Hahn & Hessen LLP serves as lead counsel to the Committee, and Tavenner & Beran, PLC, serves as local counsel. Protiviti Inc. acts as financial advisor to the Committee. HAMPSHIRE GROUP: Disclosures Approved, Plan Confirmed ----------------------------------------------------- BankruptcyData.com reported that the U.S. Bankruptcy Court approved Hampshire Group's Disclosure Statement and concurrently confirmed the First Amended Joint Chapter 11 Plan of Liquidation, proposed by the Company and its official committee of unsecured creditors. As previously reported, "The Plan contemplates the substantive consolidation of the Debtors' Estates into a single Estate for all purposes associated with Confirmation and Consummation. The Plan further provides for the establishment on the Effective Date of the Liquidation Trust for the primary purpose of administering and liquidating the Trust Assets and for the secondary purposes of, inter alia, (a) analyzing and pursuing Causes of Action; (b) resolving all Administrative Expense Claims, Professional Fee Claims, and Claims; and (c) making all Distributions provided for under the terms of the Plan. The Liquidation Trust shall be under the direction and control of the Liquidation Trustee, as trustee of the Liquidation Trust, subject to the terms of the Plan and the Liquidation Trust Agreement . . ." The report continues, "On or as soon as practicable after the Effective Date, after the Liquidation Trustee has funded (i) the initial $250,000 of the Post-Effective Date Trust Expense Reserve and (ii) the 401(k) Plan Termination Reserve, the Liquidation Trustee will distribute, on a Pro Rata basis, the Distributable Cash by (a) making Pro Rata Distributions of Cash to each Holder of an Allowed Administrative Expense Claim and (b) funding a Plan Reserve in Cash for all Disputed Administrative Expense Claims the aggregate amount of which equals the sum of (y) the Pro Rata Distribution calculated based upon the undisputed amount, if any, of each Disputed Administrative Expense Claim, after taking into account any claims, rights, or defenses of the Debtors, their Estates, or the Liquidation Trust, and (z) the Liquidation Trustee's good faith estimate of a sufficient amount to satisfy the disputed amount of each Disputed Administrative Expense Claim." About Hampshire Group New York-based Hampshire Group, Limited (OTC Markets: HAMP) is a provider of fashion apparel across a broad range of product categories, channels of distribution and price points. As a holding company, the Company operates through its wholly-owned subsidiaries, Hampshire Brands, Inc. and Hampshire International, LLC. Hampshire Group, Limited and two affiliates -- Hampshire Brands and Hampshire International -- sought Chapter 11 bankruptcy protection (Bankr. D. Del. Case Nos. 16-12634 to 16-12636) on Nov. 23, 2016, to facilitate the orderly wind-down of their business operations. The petitions were signed by Paul Buxbaum, president and CEO. Hampshire Group disclosed $25.9 million in assets and $41.8 million in liabilities. Brands estimated under $50 million in both assets and debt. International estimated under $50,000 in assets and under $50 million in liabilities. Blank Rome LLP is the Debtors' counsel. William Drozdowski of GRL Capital Advisors LLC is the Debtors' chief financial officer. The U.S. Trustee for Region 3 has formed an official unsecured creditors committee in the case. Pachulski Stang Ziehl & Jones LLP serves as legal counsel and Gavin/Solmonese LLC as financial advisor to the Committee. * * * The Bankruptcy Court authorized Hampshire Group, Limited, to sell the James Campbell assets to The Fashion Exchange, LLC, pursuant to an asset purchase agreement dated Jan. 13, 2017. Klestadt Winters Jureller Southard & Stevens, LLP, served as legal advisor to the buyer. HARRINGTON & KING: Court Extends Cash Collateral Use Until Oct. 13 ------------------------------------------------------------------ The Hon. Deborah L. Thorne of the U.S. Bankruptcy Court for the Northern District of Illinois has signed an agreed order, extending Harrington & King Perforating Co.'s and Harrington & King South Inc.'s authority to use cash collateral under the Agreed Tenth Interim Cash Collateral Order through Oct. 13, 2017. The Debtors and Inland Bank & Trust have agreed to the terms of the agreed order. A further hearing to consider the continued use of cash collateral will be held on Oct. 12, 2017 at 10:00 a.m. The Debtors will also present a motion to appoint a selling agent for the sale of substantially all of the Debtor's property at the October 12 hearing. A full-text copy of the Agreed Order, dated Sept. 28, 2017, is available at https://is.gd/5dgBgU 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. HELLO NEWMAN: $300,000 in Financing From Admar Investments OK'd --------------------------------------------------------------- The Hon. Shelley C. Chapman of the U.S. Bankruptcy Court for the Southern District of New York has authorized Albert Togut, Chapter 11 Trustee for Hello Newman, Inc., to obtain postpetition financing on behalf of the Debtor's estate up to the amount of $300,000 from Admar Investments LLC. The Chapter 11 Trustee is authorized to execute all documents necessary or appropriate to consummate the transactions contemplated in the loan documents as may be necessary to: (i) pay taxes, insurance premiums, governmental charges, and other costs and expenses to maintain, secure, repair, and safeguard the Debtor's real property located at 113 E. 2nd Street, New York, New York; and (ii) make an advance(s) of funds to Leon Hartman, Doris Kornish's son, and not directly to Ms. Kornish, utilizing a bank account that Leon Hartman, and Odetta Hartman, and Camellia Hartman, Ms. Kornish's daughters, have established at Citibank, N.A., Account No. xxx4466, to receive the Advances that may be made for the benefit of Ms. Kornish to be used by Leon Hartman to facilitate Ms. Kornish's move from the Real Property to another residence, all as may be consistent with the court order, which when consummated, will constitute legal, valid, and binding obligations of the Debtor, that are enforceable against the Debtor, its successors and/or assigns in accordance with its terms. The Lender's obligation to provide Financing will terminate upon the earliest to occur of: (i) the date of final indefeasible payment and satisfaction in full in cash of the Financing, and termination of the Debtor's obligations under the loan documents; (ii) the consummation of the sale or other disposition of all or substantially all of the Real Property, and upon an uncured event of default under the terms of the loan documents. For the avoidance of doubt, in the event of an uncured Event of Default, the Lender, its successors and assigns, may declare the entire Debt to be immediately due and payable and may seek a court order upon five business days prior written notice to the Chapter 11 Trustee and other parties in interest in the above-captioned case to obtain relief from the automatic stay for authority to enforce of its state law rights and remedies against the Real Property. The Financing to be provided by the Lender to the estate of the Debtor, as contemplated in the loan documents, will be, and is granted the status of an allowed super-priority administrative expense claim of the estate pursuant to 11 U.S.C. Section 364(c)(1). A copy of the court order is available at: http://bankrupt.com/misc/nysb16-12910-108.pdf About Hello Newman Hello Newman Inc. sought protection under Chapter 11 of the Bankruptcy Code (Bankr. S.D.N.Y. Case No. 16-12910) on Oct. 17, 2016. The petition was signed by Philip Hartman, secretary. At the time of the filing, the Debtor $14 million in assets and $4.69 million in liabilities. The case is assigned to Judge Shelley C. Chapman. The Debtor hired Rosenberg, Musso & Weiner, LLP, as its legal counsel. The Office of the U.S. Trustee appointed Albert Togut as Chapter 11 trustee for the Debtor. The Chapter 11 trustee tapped his own firm, Togut, Segal & Segal LLP, as counsel. The Trustee also tapped Warburg Realty as real estate broker and Andrew W. Plotzker as accountant. HILTZ WASTE DISPOSAL: Trustee Can Continue Using Cash Until Oct. 24 ------------------------------------------------------------------- Judge Joan N. Feeney of the U.S. Bankruptcy Court for the District of Massachusetts authorized Marck G. DeGiacomo, the court-appointed Chapter 11 Trustee of Hiltz Waste Disposal, Inc.'s estate, to continue using cash collateral through the continued hearing which will be held on Oct. 24, 2017 at 12:00 noon. Any objections to the further use of cash collateral must be filed by Oct. 20, 2017. The Chapter 11 Trustee will file an actual income and expense financial statement, compared to its budget for the period of Sept. 16 through Oct. 16, 2017 by Oct. 18, 2017. The Chapter 11 Trustee is authorized to expend cash, deposits and cash equivalents for its operations consistent with and up to the amounts set forth in the Budget. He is also authorized to pay monthly rent to Kondelin Road, LLC for its use and occupancy of the premises located at 24 and 25 Kondelin Road, Gloucester, Massachusetts, consisting of a $5,314 cash payment to be used to pay Kondelin Road's obligation to First Ipswich Bank. In addition, the Debtor will continue to pay all utilities and real estate taxes associated with its use of the property. The Chapter 11 Trustee is directed to make adequate protection payments to First Ipswich Bank, in the amount of $39,726 per month. First Ipswich Bank is also granted a valid, binding, enforceable and perfected replacement and continuing security interest in and lien on all of the Debtor's prepetition and post-petition assets to the extent, validity and priority as it held as of the Petition Date, but only to the extent of any post-petition diminution in value of its prepetition collateral. In addition, First Ipswich Bank is granted superpriority claim under Section 507(b) of the Bankruptcy Code, as is applicable. A full-text copy of the Order, dated Sept. 28, 2017, is available at https://is.gd/9pfvwM About Hiltz Waste Disposal Hiltz Waste Disposal, Inc., filed a Chapter 11 petition (Bankr. D. Mass. Case No. 16-13459) on Sept. 7, 2016. Deborah S. Hiltz, its president, signed the petition. The Debtor estimated assets and liabilities at $1 million to $10 million. The case is assigned to Judge Joan N. Feeny. Aaron S. Todrin, Esq., at Sassoon & Cymrot, LLP, served as counsel to the Debtor. Silverman, Avila & Gershaw, CPAs, was the Debtor's accountants. The Official Committee of Unsecured Creditors formed in the case retained Morrissey Wilson & Zafiropoulos, LLP, as counsel to the Committee, effective as of Oct. 19, 2016. Mark G. DeGiacomo has been appointed as Chapter 11 Trustee for the Debtor. The Trustee hired Murtha Cullina LLP as counsel. Verdolino & Lowey, P.C., serves as accountant to the Trustee. HJR LLC: Old National Bank Seeks to Prohibit Cash Collateral Use ---------------------------------------------------------------- Old National Bank asks the U.S. Bankruptcy Court for the Eastern District of Wisconsin to prohibit HJR, LLC, from using cash collateral and require the Debtor to provide disclosures regarding its prepetition sale or lease of Old National Bank's collateral to Johal Gas & Food Mart LLC. Old National Bank extended its loan to Debtor in the principal amount of $663,103. The current principal balance of the Loan is approximately $361,000. Payment of the Loan is secured by a Mortgage executed by the Debtor with respect to real estate located at 1720 North Street in Neenah, WI -- the Neenah Site. On Jan. 27, 2017, Old National Bank filed an action in the Winnebago County Circuit Court (Winnebago County Case No. 17-CV-93) seeking foreclosure of the Real Estate and replevin of the Collateral. In early July 2017, Old National Bank returned to the Winnebago County Court seeking a final judgment in the Lawsuit, and a hearing was scheduled for Sept. 14, 2017. The Debtor, however, filed for bankruptcy protection on Sept. 13, 2017. Old National Bank complains that the Debtor's Schedules now indicate that Debtor leased the Real Estate and sold the Collateral to Johal Gas prior to filing its Petition on Sept. 13, 2017. The public records indicate that Johal Gas was organized on June 5, 2017 -- during the time in which Old National Bank was attempting to resolve the Lawsuit via the Forbearance Agreement. Old National Bank believes that Johal Gas was organized for the sole purpose of participating in the Transfers with the Debtor. Old National Bank asserts that the transfers were not made in the Debtor's ordinary course of business. Old National Bank further asserts that it was not aware of the Transfers at the time they were made by Debtor, nor did it approve the Transfers. Worse, Old National Bank complains that it has not received any proceeds from the Transfers. Accordingly, Old National Bank claims that the proceeds received by Debtor as a result of the Transfers are proceeds from the Real Estate and Collateral, and constitute Old National Bank's cash collateral. Moreover, Old National Bank argues that if the Schedules are accurate, the Debtor is no longer operating the Neenah Site (Johal gas is doing so), which means that the Debtor has no need for the use of any cash collateral for the continued operation of the Neenah Site. Despite demand by Old National Bank, the Debtor has failed to provide any information regarding the Transfers. Old National Bank contends that the Debtor's disclosure of such documents is necessary for Old National Bank to determine whether the Transfers evidence a legitimate transaction supported by adequate consideration. Old National Bank is represented by: Michele M. McKinnon, Esq. Law Firm of Conway, Olejniczak & Jerry, S.C. P.O. Box 54305-2300 Green Bay, WI 54305-3200 Telephone: (920) 437-0476 About HJR, LLC HJR, LLC, doing business as Neenah BP, and formerly doing business as Badger Avenue Gas, owns gas stations. HJR has buried gas tanks at two of its gas station locations: 1720 North St. Neenah, WI 54956 and 1201 N. Badger Ave., Appleton, WI 54914. Both sites are currently inspected and up to code. HJR, LLC, sought Chapter 11 protection (Bankr. E.D. Wis. Case No. 17-29073) on Sept. 13, 2017, estimating assets in the range of $500,000 to $1 million and $1 million to $10 million in debt. The petition was signed by Charanjit Singh, its member. Judge Susan V. Kelley is assigned to the case. The Debtor tapped John W. Menn, Esq., at Steinhilber Swanson LLP, as counsel. HOLOGIC INC: Moody's Rates New $350MM Senior Unsecured Bonds Ba3 ---------------------------------------------------------------- Moody's Investors Service assigned a Ba3 rating to Hologic, Inc.'s new $350 million senior unsecured bonds. There is no change to the existing Ba2 Corporate Family Rating (CFR), Ba2-PD Probability of Default Rating (PDR), Ba1 senior secured ratings, or Ba3 senior unsecured rating. The rating outlook is stable. Proceeds from the new bond offering, in tandem with proceeds from Hologic's new senior secured credit facility, will be used to refinance debt, including the company's existing term loan and convertible notes. These transactions have no material impact on leverage and are credit positive as the company's debt maturity profile is extended. Moody's took the following rating actions on Hologic, Inc.: Ratings Assigned: Senior unsecured bonds due 2025 at Ba3 (LGD5) Ratings Unchanged: Corporate Family Rating at Ba2 Probability of Default Rating at Ba2-PD Senior secured revolving credit facility expiring 2022 at Ba1 (LGD3) Senior secured term loan due 2022 at Ba1 (LGD3) Senior unsecured notes due 2022 at Ba3 (LGD5) Speculative Grade Liquidity Rating at SGL-1 The outlook is stable. RATINGS RATIONALE Hologic's Ba2 CFR rating reflects its good scale, leading market positions within its core franchises, and good revenue diversity by product and customer. The rating is also supported by the recurring nature of nearly 70% of the company's revenues which are generated from service contracts and consumables. Further, the company generates good free cash flow, has strong interest coverage and carries moderate leverage of approximately 3.3x. The ratings are constrained by Hologic's sensitivity to general medical utilization trends and hospital capital equipment spending. Further, the ratings reflect risks associated with technology obsolescence and changes in medical practices. Hologic's Speculative Grade Liquidity Rating of SGL-1 reflects Moody's expectation for very good liquidity over the next 12-18 months. This view is supported by a sizeable cash balance ($588 million as of July 1, 2017) and Moody's belief that free cash flow will remain strong in 2017 and 2018. The substantial majority of the company's cash is generated domestically, and therefore easily accessible for US cash needs and potential debt repayment. The increased revolver size provides further support. Moody's could upgrade the ratings if Hologic can generate sustained organic revenue growth and continue to repay debt such that the rating agency expects adjusted debt to EBITDA to be sustained at roughly 2.5x. Moody's could downgrade the ratings if Hologic experiences a material reduction in revenue and earnings. Specifically, ratings could be downgraded if Moody's expects adjusted debt to EBITDA to be sustained above 3.5x, or if liquidity deteriorates meaningfully. The principal methodology used in these ratings was Medical Product and Device Industry published in June 2017. Hologic, Inc. is a leading developer, manufacturer and supplier of premium diagnostic products, medical imaging systems and surgical products. The company's core business units focus on diagnostics, breast health, gynecological surgical, skeletal health and medical aesthetics. Pro forma revenues are approximately $3 billion. HOLOGIC INC: Moody's Rates New $3BB Senior Credit Facility Ba1 -------------------------------------------------------------- Moody's Investors Service assigned a Ba1 rating to Hologic, Inc.'s new $3.0 billion senior secured credit facility. There is no change to the existing Ba2 Corporate Family Rating (CFR), Ba2-PD Probability of Default Rating (PDR), or the unsecured notes rating of Ba3. The rating outlook is stable. The new senior secured credit facility consists of a $1.5 billion term loan and an upsized $1.5 billion revolving credit facility. Proceeds from the new facilities will be used to refinance existing debt, including term loan and convertible notes. The increase in the revolver size to $1.5 billion from $1 billion will further enhance Hologic's already very good liquidity, as indicated by its SGL-1 Speculative Grade Liquidity Rating. Moody's will withdraw the ratings on the existing bank debt at the transaction's close. Moody's took the following rating actions on Hologic, Inc.: Ratings Assigned: Senior secured revolving credit facility expiring 2022 at Ba1 (LGD3) Senior secured term loan due 2022 at Ba1 (LGD3) Ratings to be withdrawn upon close: Senior secured revolving credit facility expiring 2020 at Ba1 (LGD2) Senior secured term loan due 2020 at Ba1 (LGD2) Ratings Unchanged: Corporate Family Rating at Ba2 Probability of Default Rating at Ba2-PD Senior unsecured notes due 2022 at Ba3 (LGD5) Speculative Grade Liquidity Rating at SGL-1 The outlook is stable. RATINGS RATIONALE Hologic's Ba2 CFR rating reflects its good scale, leading market positions within its core franchises, and good revenue diversity by product and customer. The rating is also supported by the recurring nature of nearly 70% of the company's revenues which are generated from service contracts and consumables. Further, the company generates good free cash flow, has strong interest coverage and carries moderate leverage of approximately 3.3x. The ratings are constrained by Hologic's sensitivity to general medical utilization trends and hospital capital equipment spending. Further, the ratings reflect risks associated with technology obsolescence and changes in medical practices. Hologic's Speculative Grade Liquidity Rating of SGL-1 reflects Moody's expectation for very good liquidity over the next 12-18 months. This view is supported by a sizeable cash balance ($588 million as of July 1, 2017) and Moody's belief that free cash flow will remain strong in 2017 and 2018. The substantial majority of the company's cash is generated domestically, and therefore easily accessible for US cash needs and potential debt repayment. The increased revolver size provides further support. Moody's could upgrade the ratings if Hologic can generate sustained organic revenue growth and continue to repay debt such that the rating agency expects adjusted debt to EBITDA to be sustained at roughly 2.5x. Moody's could downgrade the ratings if Hologic experiences a material reduction in revenue and earnings. Specifically, ratings could be downgraded if Moody's expects adjusted debt to EBITDA to be sustained above 3.5x, or if liquidity deteriorates meaningfully. The principal methodology used in these ratings was Medical Product and Device Industry published in June 2017. Hologic, Inc. is a leading developer, manufacturer and supplier of premium diagnostic products, medical imaging systems and surgical products. The company's core business units focus on diagnostics, breast health, gynecological surgical, skeletal health and medical aesthetics. Pro forma revenues are approximately $3 billion. HOLOGIC INC: S&P Rates New $350MM Senior Unsecured Notes 'BB-' -------------------------------------------------------------- S&P Global Ratings assigned its 'BB-' issue-level rating and '6' recovery rating to Marlborough, Mass.-based Medical device manufacturer Hologic Inc.'s (BB+/Stable/--) proposed $350 million senior unsecured notes. The '6' recovery rating reflects S&P's expectation for negligible (0%-10%; rounded estimate: 0%) recovery in the event of default. S&P said, "We expect Hologic will use the proceeds from the proposed notes, together with available cash, to repurchase its outstanding convertible notes and/or to repay a portion of the outstanding amounts borrowed under its $1.5 billion revolver. "Our 'BB+' corporate credit rating on Hologic is unaffected by this leverage-neutral refinancing, and incorporates our view of the company's leading market position in breast health, supported by high barriers to entry, its solid above average profitability and moderate product and geographic diversity. While we expect mergers and acquisitions (M&A) to contribute to Hologic's growth strategy, we expect the company to maintain leverage between 2x and 3x." RECOVERY ANALYSIS Key analytical factors S&P said, "We have reviewed our recovery analysis on Hologic in conjunction with the company's issuance of proposed $350 million senior unsecured notes assuming the company will use the proceeds, together with available cash and revolver, to redeem all of its subordinated convertible notes." Proforma for the notes issuance, the company's capital structure will consist of a $1.5 billion revolving credit facility, $1.5 billion first-lien term loan and total amount of $1.35 billion unsecured notes. S&P said, "Our simulated default scenario contemplates a default in 2022, stemming from a combination of unanticipated operational challenges, adverse changes to reimbursement, and the development of superior technologies by competitors. We assume the revolver is 85% drawn at default, and about a 300-basis-point increase in borrowing costs resulting from LIBOR and margin increases stemming from covenant violations. "We have valued the company on a going-concern basis using a 6.5x multiple of our projected emergence-level EBITDA, consistent with our treatment of similar peers." Simulated default assumptions -- Simulated year of default: 2022 -- EBITDA at emergence: $386 million -- EBITDA multiple: 6.5x Simplified waterfall -- Net enterprise value (after 5% admin. costs): $2,384 million -- Valuation split in % (obligors/nonobligors): 95/5 -- Collateral value available to first-lien creditors: $2,139 million -- Secured first-lien debt: $2,490 million --Recovery expectations: 70%-90%; rounded estimate: 85% -- Value available to unsecured creditors: $42 million -- Unsecured creditors (including deficiency claims from secured debt): $1,736 million --Recovery expectations: 0%-10%; rounded estimate: 0% RATINGS LIST New Rating Hologic Inc. Senior Unsecured US $350 mil Notes due 2025 BB- Recovery Rating 6(0%) HUMMEL STATION: S&P Affirms 'BB-' Rating on Sr. Secured Term Loan B ------------------------------------------------------------------- S&P Global Ratings said it affirmed its 'BB-' issue-level rating on Hummel Station LLC's $455 million senior secured term loan B facility due 2022. The outlook is stable. S&P said, "We also revised the recovery rating on the term loan to '2' from '1', indicating our expectation for substantial (70%-90%; rounded estimate: 70%) recovery of principal in a default scenario." Construction has been delayed approximately two months, and commercial operations date is now expected around the end of April 2018. The delay has been primarily driven by severe weather and lower-than-expected labor productivity, due to Bechtel's difficulty in finding skilled workers and negotiating wages. Despite this, S&P expects the cash-funded contingency to more than cover incremental costs, estimated at about $17 million to date. S&P said, "We further estimate that about $20 million will remain in the contingency fund once all costs are covered. While we do not currently believe the delay will materially affect the rating, we note that the project has an obligation to deliver capacity to the Pennsylvania-Jersey-Maryland (PJM) Interconnection beginning on June 1, 2018, and any failure to do so could have a negative impact on the rating." At the end of August 2017, the total project was 81.8% complete against a plan of 88.7% to the guaranteed completion date. Engineering is 97.6% complete and construction is 72.5% complete. There is no change to the construction phase SACP of 'bbb-'; however, given the lower operations phase SACP, this does not affect the rating of the project. S&P said, "The stable outlook reflects our expectation that the project will be completed in April 2018, a delay of about two months relative to original expectations. We expect that it will then earn DSCRs of about 1.4x on average, with a 1.36x minimum during the term loan B period. This hinges on continued stability in capacity payments and a robust PJM energy market, as well as availability of about 94%. This should yield leverage of about $590/kW at maturity, leaving the project with refinancing risk. "We would consider a downgrade during construction if change orders became substantial, leading to considerable cost overruns that exceeded the cash contingency, or if construction delays caused an inability to meet the heat rate call operation (HRCO) agreement terms or capacity obligations for a prolonged period. Thereafter, lower ratings could stem from a weaker energy and capacity market or performance that is beneath our expectations, possibly resulting in a minimum DSCR under 1.35x or an increase in debt outstanding at maturity. We could also lower the rating if the project failed to sweep cash to the senior debt as expected, leading to increased refinancing risk and a PLCR below 1.5x. "While unlikely at this time, we could raise the rating if market conditions improved significantly in PJM, such that minimum DSCRs during the term loan B period exceeded 2x. Furthermore, the strengthening of existing HRCOs could lead to lower market risk and, possibly, higher ratings." IRONCLAD PERFORMANCE: Court Approves Sale Bid Procedures -------------------------------------------------------- BankruptcyData.com reported that the U.S. Bankruptcy Court approved Ironclad Performance Wear's emergency motion for an order approving the form of an asset purchase agreement for stalking horse bidder Radians Wareham Holding and for prospective over-bidders to use; approving the auction sale format, bidding procedures and stalking horse bid protections; approving the form of notice to be provided to interested parties and scheduling a Court hearing to consider approval of the sale to the highest bidder. As previously reported, "The principal terms of the APA are summarized as follows: Purchaser will be paying a cash purchase price of either $15 million or $20 million depending upon the occurrence of an event which is sensitive and is the subject of a motion the Debtors are filing under seal, which the Debtors hope will be granted by the Court. It should be noted that the Debtors believe the total debt in these cases (both secured and unsecured combined) is or will be in the range of approximately $8-$10 million, which means that all creditors are expected to be paid in full with there being a substantial distribution to the shareholders of the parent company, which is a publicly traded company. Purchaser has deposited $1 million cash with Debtors' bankruptcy counsel which Purchaser will forfeit to the Debtors' estates if Purchaser elects not to proceed with its purchase of the Purchased Assets. The Debtors' proposed sale to Purchaser is subject to overbid with a minimum proposed overbid of at least $750,000 or any higher figure which is wholly divisible by $250,000. The Debtors' proposed subsequent bidding increments will be $250,000 or higher figures which are wholly divisible by $250,000. The proposed break-up fee to Purchaser is $500,000." About Ironclad Performance Wear Corp. Ironclad Performance Wear Corporation designs and manufactures branded performance work wear for a variety of construction, do-it-yourself, industrial, sporting goods and general services markets. Since inception, the company has leveraged its proprietary technologies to design task-specific technical gloves and performance apparel designed to improve the wearer's ability to perform specific job functions. Ironclad's gloves are available through industrial suppliers, hardware stores, home centers, lumber yards, and sporting goods retailers nationwide; and through authorized distributors in North America, Europe, Australia, Middle East, Asia and South America. Ironclad Performance Wear Corporation, a California corporation and Ironclad Performance Wear Corporation, a Nevada corporation sought protection under Chapter 11 of the Bankruptcy Code (Bankr. C.D. Cal. Case Nos. 17-12408 and 17-12409) on Sept. 8, 2017. Geoffrey L. Greulich, chief executive officer, signed the petitions. The cases are jointly administered and are assigned to Judge Martin R. Barash. Ironclad California estimated assets of $10 million to $50 million and liabilities of $1 million to $10 million. In its schedules, Ironclad Nevada disclosed $16.6 million in assets and $8.05 million in debt. On Sept. 22, 2017, the U.S. Trustee appointed three creditors to serve in the official committee of unsecured creditors in the Debtors' cases. ITUS CORP: Regains Compliance with NASDAQ Listing Requirement ------------------------------------------------------------- ITUS Corporation has received formal notice from the Listing Qualifications Staff of The NASDAQ Stock Market LLC that the company has regained compliance with the minimum bid price requirement of The Nasdaq Stock Market as required for continued listing on The Nasdaq Capital Market. On Aug. 18, 2017, the company was notified by NASDAQ that it no longer met the minimum bid price requirement for continued listing, and the August 18 matter is now closed. "We are very pleased to be back in compliance with the Nasdaq listing requirements, and are excited about the future development of our CchekÔ early cancer detection platform, as well as the opportunities to expand into cancer therapeutics with CAR-T technology for Ovarian Cancer," stated Dr. Amit Kumar, ITUS chief executive officer. About ITUS Corporation San Jose, California-based ITUS Corporation (NASDAQ:ITUS) -- http://www.ITUScorp.com/-- funds, develops, acquires, and licenses emerging technologies in areas such as biotechnology. Formerly known as CopyTele, the Company is developing a platform called Cchek, a series of non-invasive, blood tests for the early detection of solid tumor based cancers, which is based on the body's immunological response to the presence of a malignancy. CopyTele changed its name to "ITUS Corporation" on Sept. 2, 2014, to reflect the Company's change in its business operations. Haskell & White LLP, in Irvine, California, issued a "going concern" qualification on the Company's consolidated financial statements for the year ended Oct. 31, 2016, citing that the Company has limited working capital and limited revenue-generating operations and a history of net losses and net operating cash flow deficits. These conditions raise substantial doubt about the Company's ability to continue as a going concern. ITUS Corp reported a net loss of $5.01 million on $300,000 of total revenue for the year ended Oct. 31, 2016, compared to a net loss of $1.37 million on $9.25 million of total revenue for the year ended Oct. 31, 2015. As of July 31, 2017, ITUS had $8.41 million in total assets, $2.92 million in total liabilities, and $5.48 million in total shareholders' equity. LANE FAMILY: Wants to Use Cash Collateral Through Dec. 31 --------------------------------------------------------- Lane Family Limited Partnership No. One filed with the U.S. Bankruptcy Court for the Eastern District of California a fourth cash collateral motion, asking for approval on its use cash collateral for the three-month period ending on Dec. 31, 2017. The Debtor's operations generate about $8,600 per month in cash. The Debtor proposes to use the cash collateral to maintain its business operations. Specifically, the Debtor intends to use cash collateral to pay monthly expenses in the ordinary course of business in the categories and amounts identified in the aforesaid budget, up to the amount of $8,596 per month. The Debtor maintains that the unused portions of said budget will roll over to increase the following months' budgets, category by category. The Debtor owns four parcels of real property located at: (a) 20988 E. Hwy. 12, Clements, CA; (b) 20530 E. Hwy. 12, Clements, CA; (c) 22801 N. Johnson Rd., Clements, CA; and (d) 22659 N. Johnson Rd., Clements, CA. The Debtor believes that these parcels of real property have a combined value of approximately $2.38 million. The Debtor also owns certain Mitigation Bank Credits arising from the designation by the U.S. Fish and Wildlife Service of approximately 814 acres of land formally owned by Debtor as the Fitzgerald Ranch Conservation Bank pursuant to that certain Conversation Agreement and Perpetual Conservation Easement Gran by and between Debtor and the U.S. Fish and Wildlife Service. The Debtor also rents a home located at 20588 E. Hwy. 12, Clements, California, to a third party for the sum of $600 per month. Finally, the Debtor earns income from services it renders to third parties, including caring for cattle, in the approximate amount of $8,000 per month. The Debtor believes that these entities have claims secured by its assets: (a) SJ County Tax Collector asserts a claim in the approximate amount of $5,863, which claim is secured by Real Properties; (b) First Community Bank asserts a claim in the approximate amount of $2,483,345, which claim is secured by Real Properties and Mitigation Bank Credits; (c) Strategic Funding Source, Inc., asserts a claim in the approximate amount of $9,995, which claim is secured by the Debtor's receivables, personal property, and Mitigation Bank Credits; and (d) Frog Funding, LLC, asserts a claim in the approximate amount of $15,000, which claim is secured Debtor’s receivables, personal property, and Mitigation Bank Credits. The Debtor asserts that its cash collateral assets have a combined value of at least $4,204,000, or as much as $5,344,000, but the estimated secured claims (including the disputed amount of First Community Bank's claim) against the property total $2,505,203. Therefore, the Debtor submits that the claims are protected by an equity cushion of between $1,698,797 and $2,838,797, representing between 40.41% and 53.12% of the assets' values. According to the Debtor, this substantial equity cushion is sufficient to protect the creditors' claims such that the Debtor may use the cash collateral. However, to the extent required and authorized by law or the prepetition agreements with creditors, the Debtor does not oppose granting of replacement liens in favor of creditors holding an interest in cash collateral. A hearing to consider approval of cash collateral use will be held on Oct. 11, 2017, at 10:00 a.m. A full-text copy of the Debtor's Motion, dated Sept. 27, 2017, is available at https://is.gd/s2c8MH About Lane Family LP No. One Lane Family Limited Partnership No. One's bankruptcy case was commenced by filing voluntary chapter 12 petition on Jan. 4, 2017. Jan Johnson was the appointed acting Chapter 12 Trustee. The case was later converted to one under Chapter 11 (Bankr. E.D. Cal. Case No. 17-20038) on March 15, 2017. The Hon. Robert S. Bardwil presides over the case. The Debtor is represented by Iain A. MacDonald, Esq., and Matthew J. Olson, Esq., at MacDonald Fernandez LLP. LEXINGTON HOSPITALITY: Allowed to Use Cash Collateral Until Oct. 19 ------------------------------------------------------------------- Judge Gregory R. Schaaf of the U.S. Bankruptcy Court for the Eastern District Court of Kentucky authorized Lexington Hospitality Group, LLC, to use cash collateral on an interim basis only in accordance with the Budget for the time period of Oct. 2, 2017 through the conclusion of the hearing scheduled for Oct. 19, 2017 and any further orders of the Court. In addition to the granting of replacement liens to PCG Credit Partners (as provided in previous orders), the Debtor will pay a $5,000 October adequate protection payment to PCG Credit Partners on or before October 6, 2017. A full-text copy of the Interim Order, dated Oct. 3, 2017, is available at https://is.gd/YrVAUa PCG Credit Partners is represented by: Martin B. Tucker, Esq. DINSMORE & SHOHL LLP 250 West Main St., Ste 1400 Lexington, KY 40507 E-mail: martin.tucker@dinsmore.com 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 JAMES: Reaches Deal With Bank on Cash Use ------------------------------------------------- Lincoln James Investment Properties, LLC, seeks approval from the U.S. Bankruptcy Court for the Central District of California of a stipulation with Plaza Bank to use the cash collateral retroactive from the Petition Date through the Effective Date of a confirmed plan of reorganization or dismissal or conversion of the case. A hearing to consider the Debtor's use of cash collateral will be held on Oct. 24, 2017 at 1:00 p.m. The Debtor owns a single parcel of commercial real property located at 27310 Madison Avenue, Temecula, California that has an estimated value of $7 million. The Real Property is rented to two tenants. The Debtor claims that it has no other business and has no employees. The rents received by Debtor from its tenants are cash collateral. As of the Petition Date, there were two loans secured by the Real Property. The senior deed of trust held by Plaza Bank and the junior deed of trust held by Happy Rock Merchant Solutions, LLC. Each of the Deeds of Trust contains an assignment of rents clause. The approximate balance owed to Plaza Bank is $3.6 million, and the approximate balance owed to Happy Rock is alleged to be $1.5 million. The Debtor and Plaza Bank have entered into a stipulation for the use of cash collateral. The stipulation provides that such use is limited to payment of: (a) Monthly postpetition loan payments to Plaza Bank in the amount of $22,124 commencing Sept. 1, 2017; (b) Monthly loan payments to any junior trust holders in the contractual amounts; (c) Property Owner's Association dues; (d) Amounts required for the operation, maintenance, repair and security of the Real Property, including real property taxes, insurance and utilities; and (e) U.S. Trustee quarterly fees and any required court fees. The projected budget for the months of September 2017 through March 2018 provides total expenses in the aggregate amount of $24,330 per month. The Debtor has also agreed that Plaza Bank will have a valid, perfected post-petition security interest in and liens upon all of the post-petition rents, issues, and profits, and proceeds thereof, derived from the Real Property to the same degree and extent it had prepetition. A full-text copy of the Debtor's Motion, dated October 2, 2017, is available at https://is.gd/slxWSA About Lincoln James Lincoln James Investment Properties, LLC, a single asset real estate, owns a fee simple interest a real property located at 27310 Madison Avenue, Temecula, California, valued at $7 million. Lincoln James sought protection under Chapter 11 of the Bankruptcy Code (Bankr. C.D. Cal. Case No. 17-17285) on Aug. 30, 2017. Jared Scarth, managing member, signed the petition. At the time of the filing, the Debtor disclosed $7.01 million in assets and $5.21 million in liabilities. Judge Wayne E. Johnson presides over the case. The Debtor's attorneys: THE TUROCI FIRM Todd Turoci Julie Philippi 3845 Tenth Street Riverside, CA 92501 Telephone: (888) 332-8362 Facsimile: (866) 762-0618 E-mail: mail@theturocifirm.com LTD MANAGEMENT: Allowed to Use Up to $7,931 Cash Through Nov. 30 ---------------------------------------------------------------- Judge Michael A. Fagone of the U.S. Bankruptcy Court for the District of New Hampshire authorized LTD Management, Inc., to use and expend up to $7,931 in cash during the period from Oct. 1 through Nov. 30, 2017, in the ordinary course of business to the extent provided by the Budget. The Court finds that the Senior Secured Lenders' prepetition liens remain enforceable against the Debtor's postpetition assets to the same extent they were enforceable prepetition. With respect to each record lienholder with a security interest in the Debtor's cash collateral, the Court will grant a replacement lien in, to and on the Debtor's post-petition property of the same kinds and types as the collateral on which it held a valid and enforceable, perfected liens on the Petition Date. The next motion for continued use of cash collateral will be filed on or before Nov. 15, 2017, and the deadline for objections will be Nov. 22, provided the motion is timely filed. A contingent hearing will be held on Nov. 29, 2017 at 1:30 p.m. A full-text copy of the Order, dated Sept. 28, 2017, is available at https://is.gd/KOYlph About LTD Management Headquartered in Raymond, New Hampshire, LTD Management, Inc., was formed in July 1992 for the purpose of owning real estate located at 63 Route 27 Raymond, New Hampshire, and leasing out certain units within the building. Lisa D'Aoust owns a 100% interest in LTD. LTD Management filed for Chapter 11 bankruptcy protection (Bankr. D.N.H. Case No. 17-10684) on May 10, 2017, estimating its assets and liabilities at between $100,001 and $500,000. Cheryl C. Deshaies, Esq., at Deshaies Law, serves as the Debtor's bankruptcy counsel. No trustee or examiner has been appointed in the Debtor's case, and no official statutory committee has yet been appointed or designated by the U.S. Trustee. MARINA BIOTECH: Stefan Loren Quits from Board of Directors ---------------------------------------------------------- Stefan Loren, Ph.D., provided Marina Biotech, Inc., with notice of his resignation from the Board of Directors, effective on Oct. 2, 2017, to focus on a new career opportunity. Dr. Loren's resignation from the Board did not result from any disagreement with the Company on any mater relating to the Company's operations, policies or practices, the Company said in a Form 8-K report filed with the Securities and Exchange Commission. Dr. Loren had served on the Board since August 2012 and was the Company's lead independent director and chairman of the compensation committee of the Board. The Board unanimously elected Board member Philippe P. Calais, Ph.D. to assume the role of lead independent director, which appointment became effective on Oct. 2, 2017. About Marina Biotech Headquartered in Bothell, Washington, Marina Biotech, Inc. -- http://www.marinabio.com/-- is a biopharmaceutical company engaged in the discovery, acquisition, development and commercialization of proprietary drug therapeutics for addressing significant unmet medical needs in the U.S., Europe and additional international markets. The Company's primary therapeutic focus is the disease intersection of hypertension, arthritis, pain, and oncology allowing for innovative combination therapies of the plethora of already approved drugs and the proprietary novel oligotherapeutics of Marina Biotech, Inc. The Company's approach is meant to reduce the risk associated with developing a new drug de novo and also accelerate time to market by shortening the clinical development program through leveraging what is already known or can be learned in its proprietary Patient Level Database (PLD). Squar Milner 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 and negative cash flows from operations and has had recurring negative working capital. This raises substantial doubt about the Company's ability to continue as a going concern. Marina Biotech reported a net loss of $837,143 on $0 of revenue for the year ended Dec. 31, 2016, compared with a net loss of $1.11 million on $0 of revenue for the year ended Dec. 31, 2015. As of June 30, 2017, Marina had $6.63 million in total assets, $4.15 million in total liabilities and $2.47 million in total stockholders' equity. At June 30, 2017, the Company had an accumulated deficit of $4.205 million and a negative working capital of $3.756 million. The Company anticipates that it will continue to incur operating losses as it executes its plan to raise additional funds and investigate strategic and business development initiatives. In addition, the Company has had and will continue to have negative cash flows from operations. The Company has previously funded its losses primarily through the sale of common and preferred stock and warrants, the sale of notes, revenue provided from its license agreements and, to a lesser extent, equipment financing facilities and secured loans. In 2016 and 2015, the Company funded operations with a combination of the issuance of notes and preferred stock, and license-related revenues. At June 30, 2017, the Company had a cash balance of $263,900. Its operating activities consume the majority of its cash resources. MERCYHURST UNIVERSITY: S&P Cuts Rating on Outstanding Bonds to BB+ ------------------------------------------------------------------ S&P Global Ratings lowered its rating one notch to 'BB+' from 'BBB-' on the Erie Higher Education Building Authority, Pa.'s outstanding bonds, issued on behalf of Mercyhurst University. The outlook is stable. "The downgrade resulted from the issuance of off- balance sheet debt, which we view as indirect debt of the university due to the very strong connectivity between the university and the housing project, which resulted in low financial resources relative to debt, coupled with persistent deficits and pressured liquidity," said S&P Global Ratings credit analyst Bobbi Gajwani. We did not anticipate this debt during our last review, published Oct. 26, 2016." "Though the new management team has made progress in turning around operations and achieved a surplus in fiscal 2017, enrollment declines have resulted in a history of operating deficits and weaker cash flows that have further depleted the balance sheet. In addition, preliminary estimates for fall 2017 indicate another, albeit smaller, decrease in enrollment and another expected small deficit in fiscal 2018, though break-even on a cash basis," Mr. Gajwani added. S&P said, "We assessed Mercyhurst's enterprise profile as adequate reflecting some stabilization of enrollment in the past two years due to a strong new management team; but it is offset by a high tuition discount rate that continues to increase. We assessed Mercyhurst's financial profile as vulnerable, characterized by three years of operating deficits, weak financial resource ratios for the rating category, and low liquidity. We believe these combined credit factors lead to an indicative stand-alone credit profile of 'bb+' and a long-term rating of 'BB+'." MESOBLAST LIMITED: Clinical Trial of MPC Therapy Ends Enrollment ---------------------------------------------------------------- Mesoblast Limited announced that a multi-center team of researchers led by Icahn School of Medicine at Mount Sinai Hospital, New York, has completed enrollment of a 159-patient Phase 2b trial evaluating Mesoblast's novel allogeneic mesenchymal precursor cell (MPC) therapy for the treatment of end-stage heart failure. The trial is funded by the United States National Institutes of Health (NIH), and the Canadian Institute of Health Research (CIHR). Due to the serious, life-threatening nature of end-stage heart failure, positive trial results using Mesoblast's product candidate MPC-150-IM in end-stage heart failure patients requiring left ventricular assist devices (LVADs) could provide support for an accelerated regulatory pathway. There are approximately 50,000 end-stage heart failure patients in the United States and the one-year mortality rate on maximal medical therapy is over 50%. However, fewer than 5,000 of those 50,000 patients are given potentially life-saving LVADs due to the high risks of increased morbidity, recurrent hospitalizations, and inflammatory complications, including gastrointestinal bleeding, associated with these devices. The primary efficacy endpoint of the 2:1 randomized, placebo-controlled trial will evaluate, over a six-month period, whether MPC-150-IM at a dose of 150 million cells can strengthen native heart muscle sufficiently to maintain circulation in end-stage heart failure patients once they have been weaned from an LVAD. Secondary efficacy endpoints will include rates of re-hospitalization, survival, and other quality of life measurements and will be measured over a 12-month period. If the trial's endpoints are met, MPC-150-IM therapy could facilitate far wider use of LVADs amongst end-stage heart failure patients. Results from a 30-patient pilot study using MPC-150-IM at a substantially lower dose of 25 million cells, compared with 150 million cells used in the current Phase 2b study, have shown that the MPC-150-IM cell therapy improved native heart function, prolonged the time to first re-hospitalization following the implantation of an LVAD, and improved early survival rates in LVAD recipients. These results are thought to be due to the ability of the MPCs to induce a mature blood vessel network in the ailing heart, and to reduce the damaging immune effects in both the native heart, and in its response to the presence of the LVAD. "There is an urgent need to develop a clinical approach that could facilitate greater LVAD use in the 50,000 patients with end-stage heart failure in order to improve their dismal one-year survival rates on medical therapy alone," stated Dr Silviu Itescu, chief executive of Mesoblast. "We believe that MPC-150-IM could substantially impact outcomes of patients with end-stage heart failure by reducing LVAD-related morbidity, reducing hospital re-admission rates, and improving survival. Importantly, if the native heart is strengthened sufficiently to facilitate early device explantation, this could create a bridge-to-recovery paradigm combining MPC-150-IM with temporary LVAD use." Dr Annetine Gelijns, Chair of the Department of Population Health Science & Policy, and Edmund A. Guggenheim, Professor of Health Policy and Co-Director of InCHOIR at the Icahn School of Medicine, Mount Sinai Hospital, New York, commented, "We are very pleased to have completed the enrollment milestone in this study. We are also very excited at the potential for MPC-150-IM as an adjunctive therapy for an LVAD." The results of the MPC-150-IM 30-patient pilot study were published in the American Heart Association journal Circulation, and can be found here. About End-Stage Heart Failure New York Heart Association Class IV heart failure affects more than 250,000 patients in the United States alone, with over 50,000 having end-stage disease. The number of end-stage heart failure patients is expected to rise in line with the 25% projected increase in total heart failure patients between 2010 and 20305,6. There are currently very few medical options for end-stage heart failure patients, as only around 2,000 heart transplants can be performed in the U.S. every year due to limited donor availability7. LVADs have significantly improved survival for end-stage heart failure patients, and are increasingly being used as a destination therapy8,9. However, the 12-month mortality rates remain between 20% and 30% for patients implanted with LVADs, and repeated hospitalizations are very common. The complications arising from LVAD implantation have severely restricted their use by the vast majority of the end-stage heart failure population, as well as reducing its cost-effectiveness as a treatment. About Mesoblast Australia-based Mesoblast Limited (ASX:MSB; Nasdaq:MESO) is a global developer of innovative cell-based medicines. The Company has leveraged its proprietary technology platform, which is based on specialized cells known as mesenchymal lineage adult stem cells, to establish a broad portfolio of late-stage product candidates. Mesoblast's allogeneic, 'off-the-shelf' cell product candidates target advanced stages of diseases with high, unmet medical needs including cardiovascular conditions, orthopedic disorders, immunologic and inflammatory disorders and oncologic/hematologic conditions. Mesoblast Limited reported a net loss before income tax of US$90.21 million for the year ended June 30, 2017, compared to a net loss before income tax of US$90.82 million for the year ended June 30, 2016. As of June 30, 2017, Mesoblast had US$655.7 million in total assets, US$138.9 million in total liabilities and US$516.8 million in total equity. PricewaterhouseCoopers, in Melbourne, Australia, issued a "going concern" opinion on the consolidated financial statements for the year ended June 30, 2017, noting that Company has suffered recurring losses from operations that raise substantial doubt about its ability to continue as a going concern. MICHAEL JOSEPH KILROY: Blocking Public Access to Papers Unwarranted ------------------------------------------------------------------- Judge Robert Kwan of the U.S. Bankruptcy Court for the Central District of California denies Debtor Michael J. Kilroy's motion to restrict public access to paper filings consisting of the litigation proceedings involving debtor's objection under FRBP 3007 to the claims of his sister (in her own and as successor in interest to his parents) and related parties. The debtor contends that the allegations by his sister and related parties that he defrauded them are "scandalous" and should be sanitized upon his request by restricting public access to the litigation proceedings relating to these allegations, construing the language of 11 U.S.C section 107(b)(2) for protecting a person with respect to scandalous or defamatory matter contained in a paper filed in a bankruptcy case as absolute, citing In re Roman Catholic Archbishop of Portland in Oregon, supra. The court does not agree with this contention because the Ninth Circuit in citing In re Roman Catholic Archbishop of Portland in Oregon, supra, employed a balancing test in construing the language of 11 U.S.C. section 107(b) and held that requests to "protect" persons from disclosure of "scandalous" matter in bankruptcy filings are not upheld as absolute as indicating by the circuit's balancing of various factors in deciding to grant relief to prevent disclosures of "scandalous" allegations of sexual abuse by priests in one instance, but deny relief in another instance. Moreover, the allegations against the debtor in the papers filed by his parents and his sister are not so scandalous to warrant restriction of public access. Having conducted the careful analysis that the court must engage in to determine debtor's request for privacy as to papers filed with the court the court denies the request. Simply speaking, the public's interest in access to litigation documents filed in judicial proceedings is not outweighed by debtor's private interest in suppressing unfavorable allegations against him. A full-text copy of Judge Kwan's Tentative Ruling dated Sept. 27, 2017, is available at https://is.gd/uUK385 from Leagle.com. Michael Joseph Kilroy, Debtor, represented by John-Patrick M. Fritz -- jpf@lnbyb.com -- Levene Neale Bender Yoo et al, David L. Neale -- dln@lnbyb.com -- Levene Neale Bender Yoo & Brill LLP. United States Trustee (LA), U.S. Trustee, represented by Kenneth G. Lau -- kenneth.g.lau@usdoj.gov -- Office of the United States Trustee. The case is In re Michael Joseph Kilroy, Chapter 11, Debtor and Debtor in Possession, Case No. 2:15-bk-15708-RK (Bankr. C.D. Cal.). Counsel for the Debtor is J.P Fritz, Esq., at Levene, Neale, Bender, Yoo & Brill L.L.P., in Los Angeles, California. MIDWEST ASPHALT: Cash Collateral Use Extended Until Oct. 31 ----------------------------------------------------------- Based on the stipulation of Callidus Capital Corporation and Midwest Asphalt Corporation, Judge William J. Fisher of the U.S. Bankruptcy Court for the District of Minnesota inked his approval to a stipulated order modifying the Order Regarding Further Use of Cash Collateral, as follows: (1) Paragraph 2 of the Cash Collateral Order is replaced with the following: "Unless further extended by an order of the Court, the Debtor’s authorization to use cash collateral terminates automatically on the earlier of: (a) the date that the Welty DIP Facility terminates; or (b) October 31, 2017." (2) Paragraph 6 of the Cash Collateral Order is modified as follows for the month of October 2017 only: "As additional adequate protection, the Debtor agrees to make an adequate protection payment of $20,000 to Callidus on or before October 2, 2017, and agrees to make an additional adequate protection payment of $20,000 to Callidus on or before October 20, 2017." A full-text copy of the Order, dated Sept. 28, 2017, is available at https://is.gd/wRlO74 About Midwest Asphalt Midwest Asphalt Corporation is a construction company, primarily in the business of constructing and paving roads. Midwest Asphalt has been in business since 1968. The Company currently employs approximately 150 people. The seasonal work begins to grow in April, reaches its peak in June and July, and is completed in November each year. Midwest Asphalt, based in Hopkins, Minnesota, filed a Chapter 11 petition (Bankr. D. Minn. Case No. 17-40075) on Jan. 12, 2017. The petition was signed by Blair Bury, president. The case is jointly administered with the case of MAR Farms, LLC (Bankr. D. Minn. Case No. 17-41371) and Delta Milling, LLC (Bankr. D. Minn. Case No. 17-41372). The Debtor estimated assets and debt at $10 million to $50 million at the time of the filing. The case is assigned to Judge Katherine A. Constantine. The Debtor is represented by Thomas Flynn, Esq., at Larkin Hoffman. Daniel M. McDermott, the U.S. Trustee for Region 12, on Feb. 2, 2017, appointed two creditors of Midwest Asphalt to serve on the official committee of unsecured creditors. The committee members are: (1) WD Larson/Allstate Peterbilt; and (2) Tiller Corporation. The U.S. Trustee, on March 16, 2017, added LSREF2 Cobalt LLC to the Committee. The Committee retained Matthew R. Burton, Esq., at Leonard, O'Brien, Spencer Gale & Sayre, Ltd., as legal counsel. MONAKER GROUP: Mark Wilton Reports 13.1% Stake as of Oct. 2 ----------------------------------------------------------- Mark A. Wilton reported in a Schedule 13D/A filed with the Securities and Exchange Commission on Oct. 2, 2017, that he beneficially owns 2,293,483 shares of common stock of Monaker Group constituting 13.1 percent of the shares outstanding. Effective on Aug. 22, 2017, Monaker Group entered into a debt conversion and voting agreement with Mr. Wilton. The Debt Conversion Agreement, requires, among other things, Mr. Wilton (a) to vote (and provided William Kerby, the Company's chief executive officer, and any other individual who is designated by the Company in the future, a proxy to vote), all of the voting shares held by Mr. Wilton, in favor of any proposals recommended by the Board of Directors of the Company, and (b) to not transfer any of the voting shares which he held, subject to certain exceptions, until the earlier of Aug. 22, 2020, and the date the Company provides Mr. Wilton notice of the termination of such voting proxy. A full-text copy of the regulatory filing is available at: https://is.gd/PWZDNy About Monaker Monaker Group, Inc., formerly known as Next 1 Interactive, Inc. -- http://www.monakergroup.com/-- operates online marketplaces for the alternative lodging rental industry and facilitate access to alternative lodging rentals to other distributors. Alternative lodging rentals (ALRs) are whole unit vacation homes or timeshare resort units that are fully furnished, privately owned residential properties, including homes, condominiums, apartments, villas and cabins that property owners and managers rent to the public on a nightly, weekly or monthly basis. The Company's marketplace, NextTrip.com, unites travelers seeking ALRs online with property owners and managers of vacation rental properties located in countries around the world. As an added feature to the Company's ALR offering, the Company also provides access to airline, car rental, hotel and activities products along with concierge tours and activities, at the destinations, that are catered to the traveler through its Maupintour products. LBB & Associates Ltd. LLP, in Houston, Texas, stated in its report on the Company's consolidated financial statements for the year ended Feb. 28, 2017, that the Company's accumulated deficit and limited financial resources raise substantial doubt about the Company's ability to continue as a going concern. Monaker reported a net loss of $7.10 million on $400,277 of revenues for the year ended Feb. 28, 2017, compared to a net loss of $4.55 million on $544,658 of revenues for the year ended Feb. 29, 2016. As of May 31, 2017, Monaker had $2.11 million in total assets, $2.91 million in total liabilities, and a total stockholders' deficit of $804,603. MRO HOLDINGS: Moody's Assigns B2 CFR; Outlook Stable ---------------------------------------------------- Moody's Investors Service assigned a B2 Corporate Family Rating (CFR) and a B2-PD Probability of Default Rating to MRO Holdings, Inc. Concurrently, Moody's assigned B2 ratings to the company's proposed $225 million senior secured term loan. Proceeds from the facility will be used to refinance existing indebtedness and to add cash to the balance sheet for future capital expenditures. The rating outlook is stable. The following is a summary of rating actions: Issuer: MRO Holdings, Inc. -- Corporate Family Rating, assigned B2 -- Probability of Default Rating, assigned B2-PD -- $225 million senior secured term loan, assigned B2 (LGD3) -- Outlook, assigned Stable RATINGS RATIONALE The B2 rating balances the company's small size and its limited operating history against a moderately leveraged balance sheet and a growing presence as a provider of airframe maintenance, repair and overhaul services (MRO). The rating considers the company's limited track record on a combined basis (standalone 2015 sales of $124 million compare with pro forma sales of $330 million) which is the result of last year's Flightstar acquisition as well as a recently signed operating agreement with TechOps Mexico. Moody's expects a continuation of this aggressive growth strategy and anticipates significant capacity investments over the next few years. Moody's recognizes the benefits that will come from MROH's growing scale but this is tempered by the rapid pace of expansion that is taking place on multiple fronts and the elevated execution risk that will be associated with this growth. Additional concerns include a noisy earnings profile, a complex corporate structure, and uneven historical operating results at both Flightstar and TechOps (performance improved meaningfully in 2016) which reduce forward visibility. A generally favorable demand environment for MRO airframe services is expected to support relatively robust topline growth over the next few years. Moody's expects this to be driven by the continued expansion in passenger and cargo traffic volumes, the growing size of the global airline fleet, and greater outsourcing of airframe work from airlines. While acknowledging the scaling benefits that come from focusing on a core group of MRO customers, Moody's also considers the company's elevated customer concentration (top customer accounts for almost 50% of sales) as well as its high degree of end-market concentration (the company focuses exclusively on commercial aerospace). Credit metrics are expected to be relatively robust with pro forma Debt-to-EBITDA (after Moody's standard adjustments) of around 4.2x. The stable rating outlook reflects expectations that a generally favorable MRO operating environment should support topline and earnings growth over the next twelve to eighteen months. Moody's expects MROH to maintain a good liquidity profile over the next 12 months. Pro forma cash balances are expected to be around $45 million although the majority of this cash is expected to be used to fund new hanger construction over the next few years. Free cash flow generation in 2018 will be muted with FCF/Debt likely to be flat to in the low single-digits in the face of elevated capex spending. External liquidity is provided by $28 million in revolving credit facilities from a group of largely Latin-American lenders whose commitments expire between July 2018 and August 2019. At this time, the facilities are undrawn and Moody's anticipates modest usage going forward. The term loan and revolving facilities are not expected to contain any financial covenants. The ratings could be upgraded if Debt-to-EBITDA was expected to be sustained below 3.0x. Improved operating performance of the Flightstar facility and a track record of strong operational execution at TechOps would be prerequisites to any upgrade. Given the company's small size, Moody's would expects MROH to maintain credit metrics that are stronger than levels typically associated with companies at the same rating level. Any upgrade would be contingent on a strong liquidity profile involving substantial free cash flow generation (FCF-to-Debt in excess of 15%) and near full availability under the revolver. The ratings could be downgraded if Debt-to-EBITDA was expected to remain above 5.0x. A weakening liquidity profile with reduced free cash flow generation and an increased reliance on revolver borrowings could also pressure the rating downward. A leveraging debt-financed acquisition or shareholder distributions could also result in a downgrade. MRO Holdings, Inc. is a provider of maintenance, repair and overhaul services to airline and freight carrying customers in North America. The company was founded in June 2013 and is owned by an investment vehicle controlled by the Kriete Family (64%) and Caoba Capital (36%). The company owns and operates two MRO facilities based in El Salvador ("Aeroman") and Florida, US ("Flightstar") and also has rights to capacity at TechOps Mexico's operations (a joint venture between Delta Airlines and Aeromexico). Pro forma revenues for the twelve months ended June 2017 are approximately $330 million. The principal methodology used in these ratings was Global Aerospace and Defense Industry published in April 2014. MRO HOLDINGS: S&P Assigns 'B+' Corp Credit Rating, Outlook Stable ----------------------------------------------------------------- S&P Global Ratings assigned its 'B+' corporate credit rating to MRO Holdings Inc. (MROH). The outlook is stable. S&P said, "At the same time, we assigned our 'B+' issue-level rating and '3' recovery rating to the company's proposed $225 million first-lien term loan B due 2023. The '3' recovery rating indicates our expectation for meaningful recovery (50%-70%; rounded estimate: 60%) in a default scenario. "Our ratings on MROH reflect the company's modest size, the limited scope of its operations, and its high customer concentration. Our ratings also consider the company's position as the largest provider in the niche market for airframe maintenance, repair, and overhaul (MRO) services in the Americas, its low-cost facilities in Latin America, and its good margins. MROH plans to use the proceeds from its new $225 million term loan to refinance its existing debt and fund its planned capacity expansion. We expect the company's leverage to be somewhat high following this issuance, with pro forma debt-to-EBITDA of 4.5x-5.0x in 2017, but believe that it will improve steadily over the next few years as MROH increases its earnings and repays its debt with excess cash. "The stable outlook on MROH reflects our expectation that the company's revenue and earnings will increase because of solid demand for its MRO services as it expands its capacity. These expectations, in combination with the company likely using its excess cash to pay down debt, will cause its credit metrics to improve moderately over the next 12 months. We expect MROH's debt-to-EBITDA to be below 4x and its FFO-to-debt ratio to be in the 16%-20% range in 2018. "We could raise our ratings on MROH in the next 12 months if its FFO-to-debt ratio increases above 20% or its debt-to-EBITDA declines below 3.5x. This could occur if the demand for its services is much better than expected because of either new customers or additional work from its existing customers. We would also require the company to dedicate its excess cash to reducing its debt in order to raise our ratings. "Although unlikely, we could lower our ratings on MROH if its FFO-to-debt declines below 12% or its debt-to-EBITDA increases above 5x in the next 12 months and we do not expect these measures to improve. This could occur because of lower-than-expected demand from the company's airline customers (because air traffic growth slows) or if it is unable to fill its planned hangar expansion (causing its margins to decline). Although less likely, this could also occur if the company returns excess cash to its shareholders instead of using it to reduce its debt." NAVICURE INC: S&P Assigns 'B-' CCR Amid ZirMed Deal --------------------------------------------------- S&P Global Ratings assigned its 'B-' corporate credit rating to Navicure Inc. The outlook is stable. S&P said, "At the same time, we assigned our 'B' issue-level rating and '2' recovery rating to Navicure's first-lien credit facility. The '2' recovery rating indicates expectations for meaningful (70%-90%; rounded estimate: 75%) recovery in the event of a default. We also assigned our 'CCC' issue-level rating and '6' recovery rating to Navicure's second-lien term loan. The '6' recovery rating indicates expectations for negligible (0%-10%; rounded estimate: 0%) recovery in the event of a default. "The rating on Navicure reflects its high leverage, which we expect to be over 8x over the next year. Navicure plans to acquire ZirMed as part of the transaction, doubling its size. We believe there are integration risks associated with the transaction and the company will incur restructuring costs and that free cash flow generation to be less than $20 million in 2018. Navicure is a technology company that provides SaaS-based revenue cycle management (RCM) services to health care providers. The rating also reflects the company's small scale (about $95 million of revenue in 2016; about $240 pro forma for the ZirMed acquisition), a narrow business focus in providing network solutions serving the health care industry, and the presence of competitors with substantially greater size and financial strength. These characteristics are partially offset by strong customer diversity, high customer retention rates of about 95%, and good revenue visibility due to its subscription based business model, and our expectation that the company will grow organically at a high-single digit rate. "Our stable outlook on Navicure reflects our expectations that Navicure's revenue will grow at a high rate. It also reflects our expectation that the company will integrate Zirmed with restructuring costs totaling $8 million or less over the next 18 months and achieve some synergies, but that leverage will remain above 8x over the next year. We also expect the company to generate free cash flow, but less than $20 million in 2018. "We could lower the rating if the company's growth flattened and the company's EBITDA margin declines by 200 bps) due to failure to integrate the two platforms, which would result in damage to its brand, loss of customers and the company's inability to generate synergies. We believe this scenario could lead to sustained negative free cash flow that would likely lead us to view the capital structure as unsustainable. "We could raise the rating if the company successfully integrates ZirMed, out-performs our base case scenario, realizes meaningful synergies, and generates free cash operating cash flow in excess of $25 million." NORALTA LODGE: S&P Affirms Then Withdraws CCR Amid Notes Redemption ------------------------------------------------------------------- S&P Global Ratings said it affirmed its ratings on Noralta Lodge Ltd., including its 'B' long-term corporate credit rating on the company. The outlook is stable. Subsequently, S&P Global Ratings withdrew its ratings on Noralta at the company's request. S&P said, "The affirmation reflected our expectation that Noralta's overall financial risk profile would remain consistent with our expectations for the 'B' rating, with our estimate of the company's fully adjusted, two-year, weighted-average funds from operations-to-debt ratio remaining at about 30% and that gross debt levels would be stable, because we expect Noralta to limit capital spending within internal cash flows. The business risk profile assessment on the company reflected our assessment of the small scale and scope of Noralta's operations, as a niche camp and catering service provider in the oilfield services and equipment sector; the company's reliance on the Canadian oil sands sector for cash flow generation; and its vulnerability to unexpected project cancellations, capital spending reductions, and unscheduled project delays." The withdrawal followed Noralta fully redeeming its senior unsecured notes. NORTHERN CAPITAL: Hires Gates O'Doherty Gonter & Guy as Counsel --------------------------------------------------------------- Northern Capital, Inc., seeks authorization from the U.S. Bankruptcy Court for the Southern District of California to employ Gates, O'Doherty, Gonter & Guy, LLP as general counsel. The Debtor is a California corporation that provides administrative, management, and planning services to Peppertree Park Villages 9&10 LLC in connection with the various plans, studies, reports, and other related documents required for the development of real property commonly known as Units 9 and 10 of Peppertree Park. Duane Scott Urquhart in the president of the Debtor. The Debtor requires Gates O'Doherty to: a. advise and consult with the Debtor concerning the rights and remedies of the Debtor with respect to property and liabilities if the Debtor's Estate; b. advise the Debtor concerning all general administrative matters and its dealings with the United States Trustee; c. advise the Debtor and prepare on its behalf all necessary schedules and amendments thereto, applications, motions, and orders; d. represent the Debtor at all hearings before the United States Bankruptcy Court involving the Debtor, as debtor-in-possession, as applicable; e. prepare any necessary motions, complaints, or other appropriate pleadings related to the sale or disposition of any property of the Estate; f. represent the Debtor with regard to the preparation of a disclosure statement and the negotiation, preparation and implementation of a plan of reorganization; g. assist the Debtor with noticing of fee applications; and h. perform other legal services at the direction of the Debtor as Debtor-in-Possession as may be necessary. Gates O'Doherty will be paid at these hourly rates: Lisa Torres $400 Other Partners $250-$375 Associates $200-$250 Law Clerks $150 Paralegals $150 Gates O'Doherty will also be reimbursed for reasonable out-of-pocket expenses incurred. On August 25, 2017, Gates O'Doherty received a security retainer in the amount of $10,000 from Robert W. Jackson, APC. Jackson is Mr Urquhart's brother-in-Law who is not a creditor of the Debtor. Lisa Torres, Esq., partner of the Offices of Gates, O'Doherty, Gonter & Guy, 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. GOGG may be reached at: Lisa Torres, Esq. Gates, O'Doherty, Gonter & Guy, LLP 15373 Innovation Drive, Suite 170 San Diego, CA 92128 Tel: (858) 676-8600 Fax: (858) 676-8601 E-mail: ltorres@gogglew.com About Northern Capital Inc. Northern Capital Inc is a real estate corporation licensed to practice in California. Its principal place of business is 1654 S. Mission Road, Fallbrook, California. The Debtor sought protection under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Calif. Case No. 17-04845) on August 13, 2017. The petition was signed by Duane Urquhart, president. The case is assigned to Judge Laura S. Taylor. At the time of the filing, the Debtor disclosed that it had estimated assets and liabilities of $1 million to $10 million. OL FRESH LLC: Can Continue Using PUB Cash Collateral Until Nov. 21 ------------------------------------------------------------------ Judge Joan N. Feeney of the U.S. Bankruptcy Court for the District of Massachusetts has issued an order authorizing OL Fresh, LLC's continued interim use of the cash collateral of People's United Bank through the continued hearing which will be held on Nov. 21, 2017 at 10:30 a.m. The Debtor is directed to submit, by Nov. 20, 2017 at noon, a three month budget projection demonstrating how the cash collateral will be utilized, as well as a comparison of the previously submitted budget to the Debtor's actual use of cash collateral through Nov. 17, 2017. People's United Bank is granted a replacement lien in and to all property of the kind presently securing the Debtor's obligations to the People's United Bank, but only to the extent of the validity, perfection, priority, sufficiency and enforceability of People's United Bank's prepetition security interests and not more than any post-petition diminution of the value of People's United Bank's interest in such property. In addition, the Debtor will pay People's United Bank $1,355 each month. The Debtor will continue to insure all assets of the Debtor and to name People's United Bank as loss payee consistent with any prepetition practice, and the Debtor will not diminish the position of People's United Bank and will maintain all assets consistent with its prepetition practice. The Debtor will also supply People's United Bank with all of the operating statements filed with the U.S. Trustee and such other financial information as reasonably requested by the People's United Bank. A full-text copy of the Order, dated Sept. 28, 2017, is available at https://is.gd/oKrryi About OL Fresh OL Fresh, LLC, filed a Chapter 11 petition (Bankr. D. Mass. Case No. 17-10994) on March 23, 2017. The petition was signed by James W. Amatucci, managing member. At the time of filing, the Debtor disclosed $30,400 in total assets and $298,003 in total liabilities. The case is assigned to Judge Joan N. Feeney. The Debtor is represented by Timothy M. Mauser, Esq. OMINTO INC: Appoints Friedman LLP as New Audit Firm --------------------------------------------------- Ominto, Inc., said it has appointed Friedman LLP as its new audit firm, effectively Oct. 3, 2017. Friedman LLP, headquartered in New York with locations throughout New York, New Jersey, Philadelphia and Beijing has been servicing the accounting, tax and business consulting needs of public and private companies since 1924. Friedman currently performs audit services to over 70 public companies in a variety of industry segments. Friedman's clients benefit from hands-on contact with the firm's partners and their cutting-edge technical expertise. Ominto will benefit from working with a mid-size accounting firm that combines the staff and resources of a larger firm with a philosophy of personal responsibility. Friedman LLP is an independent member of DFK International, an association providing global resources. Commenting on the announcement, Raoul Quijada, chief financial officer of Ominto, Inc. stated, "Friedman is a firm of the highest quality and ethical standards and we believe their comprehensive approach will meet all current and future requirements of our stakeholders. Friedman has a significant SEC practice served by diverse and experienced professionals who understand demands placed on public companies. With their extensive experience with a wide range of accelerated and non-accelerated filers, including both established and newer reporting public companies, Friedman will bring great value to us in identifying, analyzing and communicating accounting, reporting and other regulatory requirements that will have a direct benefit on our financial operations." About Ominto, Inc. Ominto, Inc. -- http://inc.ominto.com/-- is a global e-commerce company and pioneer of online Cash Back shopping, delivering value-based shopping and travel deals through its primary shopping platform and affiliated Partner Program websites. At DubLi.com or at Partner sites powered by Ominto.com, consumers shop at their favorite stores, save with the best coupons and deals, and earn Cash Back with each purchase. The Ominto.com platform features thousands of brand name stores and industry-leading travel companies from around the world, providing Cash Back savings to consumers in more than 120 countries. Ominto's Partner Programs offer a white label version of the Ominto.com shopping and travel platform to businesses and non-profits, providing them with a professional, reliable web presence that builds brand loyalty with their members, customers or constituents while earning commission for the organization and Cash Back for shoppers on each transaction. Ominto reported a net loss of $10.30 million for the year ended Sept. 30, 2016, and a net loss of $11.69 million for the year ended Sept. 30, 2015. For the six months ended March 31, 2017, Ominto incurred a net loss attributable to the Company of $6.43 million. As of March 31, 2017, Ominto had $68.62 million in total assets, $48.03 million in total liabilities and $20.58 million in total stockholders' equity. P3 FOODS: Allowed to Continue Using PNC Cash Until Nov. 7 --------------------------------------------------------- Judge Donald R. Cassling of the U.S. Bankruptcy Court for the Northern District of Illinois has entered a thirteenth interim order authorizing P3 Foods, LLC, to use the cash collateral of PNC Equipment Finance, LLC solely to pay its ordinary and necessary business expenses as set forth in the Budget through Nov. 7, 2017. The Debtor's Motion for use of cash collateral is continued for hearing on Nov. 7, 2017 at 10:00 a.m. The cash collateral budget provides that the Debtor requires approximately $1,022,522 in cash during the period from Oct. 8 through Nov. 7, 2017. In consideration of and as adequate protection for any diminution in the value of PNC Equipment's cash and non-cash collateral arising from the Debtor's use of cash collateral: (a) PNC Equipment is granted post-petition replacement liens, to the same extent and with the same priority it held pre-petition on the same type of assets. Such adequate protection liens will be a valid, perfected, first priority lien in favor of PNC Equipment against all pre-petition and post-petition assets of the Debtor of the same kind and type and to the same extent and priority as existed as of the Petition Date; (b) The Debtor will maintain all necessary insurance as may be currently in effect, and obtain such additional insurance in an amount as is appropriate for the business in which the Debtor is engaged; (c) PNC Equipment will have the right to inspect the collateral or the assets subject to its Adequate Protection Liens as well as the Debtor's books and records; and (d) The Debtor will make an adequate protection payment to PNC Equipment in the amount of $16,428. 20/20 Franchise Funding and Leaf Capital Funding are each granted with a postpetition replacement lien, to the same extent and with the same priority as they respectively held prepetition on the same type of assets. In addition, on or before Oct. 15, 2017, the Debtor will make the following adequate protection payments to its secured creditors: (a) 20/20 Franchise Funding in the amount of $4,835; and (b) Leaf Capital Funding in the amount of $797. The Debtor's right to use PNC Equipment's cash and non-cash collateral will terminate upon the earliest of: (a) Nov. 7, 2017; (b) The Debtor's failure to make the adequate protection payments; (c) The Debtor's failure to obtain and/or maintain all necessary insurance; (d) The material breach by the Debtor of any of the terms, conditions or covenants of the Thirteenth Interim Order; (e) The appointment of a Trustee for the Debtor, pursuant to the Bankruptcy Code; (f) The conversion of the Debtor's case to a case under Chapter 7 of the Bankruptcy Code; (g) The dismissal of the Debtor's case; (h) The appointment of an examiner with any of the powers of a Trustee for the Debtor; or (i) The allowance of a Motion for Relief from automatic stay, allowing a creditor of the Debtor to foreclose upon any material asset of the Debtor. A full-text copy of the 13th Interim Order, dated Oct. 3, 2017, is available at https://is.gd/bNSheL About P3 Foods, LLC P3 Foods, LLC, which operates nine Burger King franchises in Minneapolis, Minnesota, filed a chapter 11 petition (Bankr. N.D. Ill. Case No. 16-32021) on Oct. 6, 2016. The case is assigned to Judge Donald Cassling. The Debtor tapped Richard L. Hirsh, Esq., at Richard L. Hirsh, P.C., as counsel. The Debtor also engaged Aldridge Chasewater LLC as accountant. An official committee of unsecured creditors has not been appointed in the case. PADCO PRESSURE: DOJ Watchdog Names J. Luster as Chapter 11 Trustee ------------------------------------------------------------------ Henry G. Hobbs, Jr., the Acting U.S. Trustee for Region 5, filed an application asking the U.S. Bankruptcy Court for the Western District of Louisiana for an order approving the appointment of John W. Luster as Trustee in the case of PADCO Pressure Control, LLC. To the best of Hobbs' knowledge, the Trustee's connections with the debtor(s), creditors, any other parties in interest, their respective attorneys and accountants, the United States Trustee, and persons employed in the Office of the United States Trustee, are limited to the connections set forth in Rule 2007. Office of the United States Trustee: Gail Bowen McCulloch, Esq. Trial Attorney 300 Fannin Street, Suite 3196 Shreveport, Louisiana 71101 Telephone no. (318) 676-3456 Direct telephone no. (318) 676-3550 Facsimile no. (318) 676-3212 About PADCO Pressure Control PADCO Pressure Control, L.L.C., based in Lafayette, Louisiana, filed a Chapter 11 petition (Bankr. W.D. La. Case No. 16-51381) on October 4, 2016. The petition was signed by Michael Carr, chief executive 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. Judge Robert Summerhays presides over the case. Thomas E. St. Germain, member of Weinsten & St. Germain, LLC, represents the Debtor as bankruptcy counsel. On October 27, 2016, the Office of the U.S. Trustee appointed an official committee of unsecured creditors. The committee hired Adams and Reese LLP as its legal counsel. PARADOCS PROPERTIES: W Equities Seeks to Bar Use of Cash Collateral ------------------------------------------------------------------- W Equities, LLC, as assignee of The Huntington National Bank, asks the U.S. Bankruptcy Court for the Eastern District of Michigan to prohibit debtor Paradocs Properties, LLC, from using the rents and cash collateral, and require the Debtor to provide adequate protection payments -- which has not been given thus far by Debtor, and immediately remit any cash collateral or Rents in its possession. W Equities is also seeking for relief from the automatic stay to permit it to enforce its remedies including to foreclose its mortgage on the Property and to apply the proceeds from the sale to W Equities' claim against Debtor and to pursue all other recourse. W Equities asserts a perfected lien on all of Debtor's assets. Particularly, W Equities is the mortgagee of Debtor's Real Property located at 19265 Victor Parkway, Livonia, Ml 48152. As of the Petition Date, the mortgage loan balance is no less than $1,708,399, and W Equities has not received any payment from the Debtor since May 28, 2017. The Debtor leases said Real Property to a non-debtor affiliate, Doc's Sports Retreat, LLC, which is obligated to pay rent for the use of the Real Property. But the Debtor has not received any rental payments from its tenant pursuant to the filed monthly operating reports. W Equities claims that it also has a perfected interest in Debtor's rents pursuant to the mortgage, which is attached. However, W Equities alleges that the Debtor has not filed a motion for use of cash collateral, and has neither sought nor received permission from W Equities to use cash collateral or rents. In its response to W Equities' motion to dismiss, the Debtor states that it has listed the Real Property. W Equities notes, however, that no order appointing a broker has been entered in this case. According to the Debtor's schedules, the mortgaged Real Property is the Debtor's only asset, other than $12,000 in cash. W Equities had the Real Property appraised, which appraisal indicates that the value of the Real Property ($1,675,000) is worth less than what is owed to W Equities (no less than $1,708,399). Under 11 U.S.C. Section 1129(a)(10), an impaired accepting class of creditors must vote in favor of the plan in order to confirm a plan. Since W Equities will vote its secured and unsecured claim against confirmation, W Equities believes that the Debtor will be unable to confirm a chapter 11 plan, and as such, continuing in chapter 11 would be futile. Co-Counsel for W Equities, LLC: Robert N. Bassel, Esq. P.O. Box T Clinton, MI 49236 Tel: 248.677.1234 E-mail: bbassel@gmail.com About Paradocs Properties Paradocs Properties, LLC, based in Dearborn, Mich., filed a Chapter 11 petition (Bankr. E.D. Mich. Case No. 17-17968) on July 12, 2017. The Debtor estimated $1 million to $10 million in both assets and liabilities. The petition was signed by Robert F. Suchyta, its member. The Hon. Marci B McIvor presides over the case. Brent M. Lamkin, Esq., at Nichols & Eberth, P.C., serves as bankruptcy counsel. PEORIA REGIONAL: Voluntary Chapter 11 Case Summary -------------------------------------------------- Debtor: Peoria Regional Medical Center, LLC aka Peoria Hospital LLC 8020 E Palm Ln Mesa, AZ 85207-9759 Type of Business: Peoria Regional Medical Center, LLC owns an unfinished medical center located at 26320 Lake Pleasant Parkway, Peoria, Arizona. The medical center was intended to be the city's first full-service general acute-care hospital. The Peoria Building Board of Appeals had ordered the demolition of the structure indicating that the structure was an unattractive nuisance and a hazardous building. Case No.: 17-11742 Chapter 11 Petition Date: October 4, 2017 Court: United States Bankruptcy Court District of Arizona (Phoenix) Judge: Hon. Scott H. Gan Debtor's Counsel: Heather Ann Macre, Esq. AIKEN SCHENK HAWKINS & RICCIARDI P.C. 2390 E. Camelback Road, Suite 400 Phoenix, AZ 85016 Tel: 602-248-8203 Fax: 602-248-8840 E-mail: ham@ashrlaw.com Estimated Assets: $0 to $50,000 Estimated Liabilities: $1 million to $10 million The petition was signed by Timothy A. Johns, manager. The Debtor did not file a list of 20 largest unsecured creditors together with the petition. A full-text copy of the petition is available for free at: http://bankrupt.com/misc/azb17-11742.pdf PERFUMANIA HOLDINGS: Landlords Object to Plan & Disclosures ----------------------------------------------------------- BankruptcyData.com reported that multiple parties -- including DimondCenter, GGP Limited Partnership, NorthPark Mall Limited Partnership, Starwood Retail Partners, The Macerich Company (collectively, "The Landlords"); The Taubman Landlords; CenterCal Properties and Simon Property Group -- filed with the U.S. Bankruptcy Court separate objections Perfumania Holding's Disclosure Statement and Plan and motion for an order authorizing assumption of the NewHoldCo investment agreement. According to the report, the Landlords' objection argues, "The fact that a landlord uses bankruptcy procedures to enforce a lease should not preclude recovery of attorneys' fees and costs for such enforcement activity (particularly where the Bankruptcy Court is the exclusive forum where the landlord can obtain any relief, being foreclosed from state court relief by the automatic stay). Accordingly, Landlords further request that they be reimbursed for all of their actual pecuniary losses including, but not limited to, attorney's fees and costs expended with regard to Debtors' bankruptcy proceedings. Landlord estimates that it will incur a total of $2,500 per Lease in connection with these bankruptcy cases, and the Landlords will provide a reconciliation of the actual fees and costs incurred for a particular Landlord at the time of the assumption of the applicable Lease. Section 365(b)(1)(A) requires that the Debtors promptly cure outstanding balances due under the Leases upon their assumption and assignment. To the extent there is a dispute over the total cure obligation for any Lease, all undisputed cure amounts should be paid immediately. Debtors should escrow disputed amounts, and the Court should set a status conference within thirty (30) days of the assumption or assumption and assignment of the Leases to deal with any disputes that remain unresolved after such period. There is no basis to impose upon the Landlords the equivalent of an administrative bar date, limiting their recourse to recover charges to which they are entitled under the Leases." About Perfumania Holdings Perfumania Holdings, Inc. (PERF) --http://www.perfumaniaholdings.com/-- is a specialty retailer and distributor of fragrances and related beauty products across the United States. Perfumania has a 30-year history of innovative marketing and sales management, brand development, license sourcing and wholesale distribution making it the premier destination for fragrances and other beauty supplies. As of Aug. 26, 2017, Perfumania, Inc., operated a chain of 226 retail stores, specializing in the sale of fragrances and related products at discounted prices up to 75% below the manufacturers' suggested retail prices. Perfumania reported a net loss of $23.63 million for the fiscal year ended Jan. 28, 2017, and a net loss of $11.67 million for the fiscal year ended Jan. 30, 2016. As of April 29, 2017, Perfumania had $304.7 million in total assets, $253.9 million in total liabilities and $50.80 million in total shareholders' equity. On Aug. 26, 2017, Model Reorg Acquisition, LLC and 18 affiliated debtors, including perfumania Holdings, Inc., each filed voluntary petitions in the United States Bankruptcy Court for the District of Delaware seeking relief under chapter 11 of the United States Bankruptcy Code. The Debtors' cases are jointly administered for procedural purposes under the case docket for Model Reorg Acquisition, LLC (Bankr. D. Del. Case No. 17-11794). Skadden, Arps, Slate, Meagher & Flom LLP is serving as legal counsel, Ankura Consulting Group, LLC is serving as financial advisor, and Imperial Capital is serving as investment banker to the Company. The Skadden team includes Corporate Restructuring partners Lisa Laukitis and J. Gregory Milmoe (Boston), and associates Raquelle Kaye (Boston), Esther Adzhiashvili and AZ Biazar, as well as Corporate Restructuring and Bankruptcy Litigation partner Anthony Clark (Wilmington) and associate Cameron Fee (Wilmington); Banking partner Sarah Ward and associates Emily Stork, Shan Song (Chicago) and Katherine Webb; Tax partner Brian Krause and associate Joseph Soltis; and Corporate partner Richard Grossman (New York). Epiq Bankruptcy Solutions is the claims and noticing agent and maintains the Web site http://dm.epiq11.com/perfumania PLASTIPAK HOLDINGS: Moody's Rates Sr. Unsecured Bonds Due 2025 'B3' ------------------------------------------------------------------- Moody's Investors Service assigned a B3 rating to the Senior Unsecured Notes due 2025 of Plastipak Holdings, Inc. The proceeds, along with new Senior Secured Credit Facilities, will be used to partially acquire Goldman Sach's equity stake, refinance existing debt, and pay fees and expenses associated with the transaction. The transaction reduces Goldman's equity stake to approximately 15% from 36% and is expected to close in October. Moody's took the following actions: Assignments: Issuer: Plastipak Holdings, Inc. -- Senior Unsecured Regular Bond/Debenture, Assigned B3 (LGD 5) RATINGS RATIONALE Plastipak's B1 Corporate Family Rating reflects the company's scale and global geographic diversification as well as the company's good market position as one of the larger North American manufacturers of rigid plastic containers and preforms. The rating also reflects the high percentage of business under contract with cost pass-through provisions, high exposure to food and beverage end markets, and some on-site locations with customers. Plastipak is also expected to continue to maintain good liquidity. The stable ratings outlook reflects expectations that Plastipak will continue to improve margins and free cash flow and improve credit metrics over the next 12 to 18 months. The rating is constrained by the high concentration of sales, primarily commoditized product line and margins that are relatively weak for the rating category. Plastipak has a high concentration of sales in the declining US carbonated soft drinks end market and lower-margin preforms. Additionally, 53% of sales are from the top ten customers and about 35% from the top three customers. The ratings could be upgraded if the company sustainably improves its credit metrics and product mix while maintaining a high percentage of business under contract. An upgrade would also be contingent upon stability in the operating and competitive environment and the continued maintenance of conservative financial policies. Specifically, ratings could be upgraded if debt/EBITDA falls below 4.5 times, funds from operations to debt rises above 14.0% and EBITDA to Interest coverage rises above 4.25 times. The ratings could be downgraded if there is a deterioration in the competitive and operating environment, liquidity and credit metrics. Specifically, the ratings could be downgraded if debt/EBITDA remains above 5.5 times, funds from operations to debt declines below 10.0%, EBITDA to Interest coverage declines below 3.75 time, or free cash flow turns negative. The principal methodology used in these ratings was Packaging Manufacturers: Metal, Glass, and Plastic Containers published in September 2015. Plastipak Holdings, Inc. is a privately-held global manufacturer of plastic packaging containers and preforms used by branded companies in the beverage, food, consumer cleaning, personal care, industrial, and automotive industries worldwide. Headquartered in Plymouth, Michigan, Plastipak generated revenues of approximately $2.7 billion for the twelve months ended April 30, 2017. Following the transaction, the Young family will own approximately 76% of the outstanding stock and Goldman Sachs will own approximately 15% with the balance owned by senior management. PLAZA BROADWAY: Hires Quilling Selander Lownds as Counsel --------------------------------------------------------- Plaza Broadway Retail Group, LLC seeks authorization from the U.S. Bankruptcy Court for the Northern District of Texas to employ Quilling, Selander, Lownds, Winslett & Moser, PC as general counsel. The Debtor filed its application to employ Eric A. Liepins, P.C., as its general counsel on February 10, 2017. On April 19, the court entered its order employing Liepins PC. On August 16, Liepins filed its Motion to Withdraw as Counsel of Record. No order has been entered as to Liepins' Motion to Withdraw at the time of this Application. The Debtor requires Quilling Selander to: a. furnish legal advice to the Debtor with regard to its powers, duties and responsibilities as a debtor-in- possession and the continued management of his affairs and assets under chapter 11; b. prepare, for and on behalf of the Debtor, all necessary applications, motions, answers, orders, reports and other legal papers; c. prepare a disclosure statement and plan of reorganization and other services incident thereto; d. investigate and prosecute preference and fraudulent transfers actions arising under the avoidance powers of the Bankruptcy Code; and e. perform all other legal services for the Debtor which may be necessary. Quilling Selander will be paid at these hourly rates: Shareholders $275-$425 Associates $225-$275 Paralegals $100-$120 Quilling Selander has received a retainer in the amount of $10,000. The firm is holding the retainer in its trust account. John Paul Stanford, Esq., partner in the law firm of Quilling, Selander, Lownds, Winslett & Moser, 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 Debtor and its estates. Quilling Selander may be reached at: John Paul Stanford, Esq. Quilling, Selander, Lownds, Winslett & Moser, P.C. 2001 Bryan Street, Suite 1800 Dallas, TX 75201 Tel: (214) 880-1805 Fax: (214) 871-2111 Email: jstanford@qslwm.com Plaza Broadway Retail Group, LLC Plaza Broadway Retail Group, LLC filed a Chapter 11 bankruptcy petition (Bankr. N.D. Tex. Case No. 17-30247) on January 22, 2017. Eric A. Liepins, PC served as bankruptcy counsel but was later replaced by Quilling, Selander, Lownds, Winslett & Moser, PC. The Debtor's assets and liabilities are both below $1 million. PRODUCTION PATTERN: Needs Access to Cash Until December 2017 ------------------------------------------------------------ Production Pattern and Foundry, Inc., asks the U.S. Bankruptcy Court for the District of Nevada for a determination that its postpetition use of cash from its manufacturing facilities are not subject to Bank of the West's cash collateral interests, or alternatively, for authorization to use the cash collateral of Bank of the West. The Debtor tells the Court that it requires the use of its postpetition revenues in order to continue operating its business as a going concern. The Debtor further says that due to various problems with its raw material suppliers, the Debtor is required to pay COD for most of its materials and requires cash on a regular basis, in addition to its need to pay overhead expenses and payroll for its 136 employees. The Debtor has prepared a 3-Month Budget which provides total expenses of approximately $5,674,128 during the months of October through December 2017. The Debtor asserts that it has accrued but unpaid accounts receivable in the sum of $1,417,763 that are less than 90 days old, and $297,136 that are over 90 days old from prepetition sales, and cash on deposit in its bank accounts in the sum of $90,046. As of the Petition Date, the Debtor was indebted to Bank of the West in the approximate collective amount of $6,218,650, resulting from various financial accommodations, and secured by commercial security agreements purportedly encumbering all of the Debtor's personal property and all products and proceeds thereof. One of the notes is also secured by a first priority Deed of Trust against the Debtor's real property located at 10 PPF Way, Mound House, Nevada. The Debtor claims that it is not in default and is current on its loan payments to Bank of the West -- the collective monthly loan payments due to Bank of the West is $65,622. Based on the value of its prepetition collateral, the Debtor believes that Bank of the West is adequately protected by an equity cushion. Likewise, the proposed cash collateral use will allow the Debtor to effectively operate, preserve and maintain the prepetition collateral and its business operations, thereby preserving and maximizing the value of its assets for the estate and its creditors, including Bank of the West. Moreover, the Debtor proposes to continue to pay Bank of the West its regular monthly loan payments of is $65,622, until whichever of the following events occurs first: (a) entry of an order confirming a plan of reorganization in this case; or (b) conversion of this Chapter 11 case to a proceeding under Chapter 7 of the Bankruptcy Code. A full-text copy of the Debtor's Motion, dated Sept. 28, 2017, is available at https://is.gd/btNQy3 About Production Pattern and Foundry Production Pattern and Foundry Co., Inc. -- http://www.ppfco.com/ -- is a TS-16949 Certified, casting foundry, producing aluminum castings for a wide variety of industries. PPF produces parts and equipment components for a broad spectrum of markets -- from chip-making equipment to drinking fountains. Typical PPF customer applications have included: housings mounting bases, manifolds, valve bodies, door hinges and brackets. The Company also has experience in heavy truck manufacturing, semiconductor chip manufacturing equipment, medical and dental equipment manufacturing, construction, utility, packaging machinery and sports equipment industries. Production Pattern and Foundry filed a Chapter 11 petition (Bankr. D. Nev. Case No. 17-51106) on Sept. 20, 2017. The petition was signed by Arlene Cochran, president. The case is assigned to Judge Bruce T. Beesley. The Debtor is represented by Chris D Nichols, Esq. at Minden Lawyers, LLC. At the time of filing, the Debtor estimated assets and liabilities of $10 million to $50 million. QUALITY CARE: S&P Lowers CCR to B- on Near-Term Covenant Pressure ----------------------------------------------------------------- S&P Global Ratings lowered its corporate credit rating to 'B-' from 'B' on Bethesda, Md.–based Quality Care Properties Inc. The ratings all remain on CreditWatch with negative implications. S&P said, "At the same time, we lowered the issue-level rating on the $1 billion first lien loan to 'B+' from 'BB-'. The recovery rating is '1', indicating our expectation for very high recovery (90%-100%; rounded estimate: 95%) in our default scenario. We are also lowering the second-lien issue-level rating to 'B' from 'B+', with a '2' recovery rating that indicates our expectation for substantial (70% to 90%; rounded estimate: 75%) recovery. "The downgrade reflects our view that QCP has limited cushion under its existing covenants and a high probability of breaching its debt service coverage covenant as early as March 2018 absent an amendment of its credit facilities or waiver of the covenants by the lenders. Over the past few quarters, HCR ManorCare, the company's main tenant representing 91% of its NOI continues to pay substantially reduced rent under its lease agreement and management has not made progress in obtaining an amendment, waiver, or made sufficient progress towards meaningful asset sales, which we view as negative in terms of financial policy. Although the level of rent that QCP could receive is uncertain, we currently estimate QCP could receive $18 million per month in rent from HCR, which would likely result in the breach of its DSCR of 1.75x in the first quarter of 2018. Additionally, the downgrade reflects uncertainty surrounding the potential of HCR filing for bankruptcy. "We intend to resolve the CreditWatch once we gain more clarity on the company's ability to alleviate covenant pressure as well as a better understanding of the long term sustainable rental payments (from either HCR or other regional operators). If the company is unable to reach an agreement to resolve covenant issues by year-end 2017, we could lower the rating, by more than one notch into the 'CCC' category to reflect heightened default risk." REBUILTCARS CORP: Court Signs 6th Interim Order on Cash Use ----------------------------------------------------------- Judge Timothy A. Barnes of the U.S. Bankruptcy Court for the Northern District of Illinois signed a Sixth Interim Order authorizing Rebuiltcars Corporation to use the cash collateral, in which Automobile Finance Corporation asserts an interest, for its postpetition, necessary and reasonable operating expenses in accordance with the approved Budget. The Budget provides projected total monthly expenses amounting to $35,501. As adequate protection for the Debtor's use of AFC Cash Collateral, the Debtor will provide Automobile Finance Corporation with adequate protection as follows: (a) The Debtor may sell any of the AFC Secured Vehicles in the ordinary course of business for an amount sufficient to pay Automobile Finance Corporation the full amount owing on the vehicle as of the date of sale as indicated in the records of Automobile Finance Corporation; (b) Upon the sale of an AFC Secured Vehicle, the Payoff Amount will be deposited into a separate deposit account -- the AFC Escrow Account -- maintained at a financial institution approved by the U.S. Trustee; (c) Upon the sale of an AFC Secured Vehicle, the Debtor will provide written documentation to Automobile Finance Corporation that verifies the final sale of such vehicle; (d) Other than for routine maintenance and test-drives during normal business hours, the Debtor will not allow any AFC Secured Vehicle to leave its premises until receipt of title from Automobile Finance Corporation; (e) Automobile Finance Corporation will be granted with replacement liens in all property and assets in which the Debtor has an interest, including the proceeds, products, rents and profits thereof, with the same priority, validity and extent as Automobile Finance Corporation's prepetition liens; (f) The Debtor will provide Automobile Finance Corporation with a written report: (i) regarding each AFC Secured Vehicle sold or otherwise disposed of during the previous week, (ii) regarding each AFC Secured Vehicle still owned by the Debtor and the location and condition of such vehicle, and (iii) of the balance in the AFC Escrow Account, including a listing of all deposits and withdrawals; (g) The Debtor will, at all times, keep the AFC Secured Vehicles insured under the same terms and conditions as set forth in the respective AFC Note. (h) The Debtor will maintain all documents related to Automobile Finance Corporation's collateral, including all sale documents, at its principal place of business, where Automobile Finance Corporation may inspect its collateral and all documents related thereto, as well as the Debtor's premises; (i) The Debtor will remain current in the payment of all post-petition tax liabilities, including but not limited to accruing ad valorem property taxes, sales and use taxes, payroll taxes and income taxes; and (j) The Debtor will tender the sum of $202 to Automobile Finance Corporation each month until further order of the Court. A hearing to consider the continued use of cash collateral will be held on Oct. 25, 2017 at 10:30 a.m. A full-text copy of the Sixth Interim Order, dated Sept. 27, 2017, is available at https://is.gd/tAn91F About Rebuiltcars Corp Rebuiltcars Corporation filed a Chapter 11 petition (Bankr. N.D. Ill. Case No. 17-11811) on April 14, 2017. The petition was signed by Mindaugas Kazakevicius, president. The Debtor estimated $50,000 to $100,000 in assets and $500,000 to $1 million in liabilities. The case is assigned to Judge Timothy A. Barnes. The Debtor is represented by Paul M. Bach, Esq., at the Bach Law Offices. REBUILTCARS CORP: Has Interim Nod to Use Cash Until Oct. 31 ----------------------------------------------------------- The Hon. Timothy A. Barnes of the U.S. Bankruptcy Court for the Northern District of Illinois has issued a Sixth Interim Order authorizing Rebuiltcars Corporation to use the cash collateral belonging to 1st Global Capital, Capital Merchant Services, First Home Bank and Swift Capital. The Debtor may use cash collateral, to the extent set forth in the Sixth Interim Order and in accordance to the monthly operating budget, to and including October 31, 2017. The Budget provides projected total monthly expenses amounting to $35,501. It also indicates that the Debtor will make adequate protection payments as follows: 1st Global Capital - $190 Capital Merchant Services - $137 First Home Bank - $1,705 Swift Capital - $265 1st Global Capital, Capital Merchant Services, First Home Bank and Swift Capital are each granted with replacement liens in the Debtor's Business Assets, including all products, additions, accessions and replacements of those assets and the proceeds received by the Debtor in those assets. Such replacement lien will have the same validity, perfection and enforceability as the prepetition liens held by 1st Global Capital, Capital Merchant Services, First Home Bank and Swift Capital. In addition, Judge Barnes directed the Debtor to maintain adequate property insurance on the Debtor's business assets, including but not limited to vehicle, vehicle parts and inventory, certificates of title and all purchases, products and additions, accessions and replacements of those assets. A status hearing has been set for Oct. 25, 2017 at 10:30 a.m. A full-text copy of the Sixth Interim Order, dated Sept. 27, 2017, is available at https://is.gd/NhrOOL About Rebuiltcars Corp Rebuiltcars Corporation filed a Chapter 11 petition (Bankr. N.D. Ill. Case No. 17-11811) on April 14, 2017. The petition was signed by Mindaugas Kazakevicius, president. The Debtor estimated $50,000 to $100,000 in assets and $500,000 to $1 million in liabilities. The case is assigned to Judge Timothy A. Barnes. The Debtor is represented by Paul M. Bach, Esq., at the Bach Law Offices. RENNOVA HEALTH: Issues 1.75 Million Series F Preferred Stock ------------------------------------------------------------ In connection with the acquisition of Genomas, Inc., on Sept. 27, 2017, Rennova Health, Inc. issued 1,750,000 shares of Series F Convertible Preferred Stock. The following summary of certain terms and provisions of the Company's Series F Preferred Stock is subject to, and qualified in its entirety by reference to, the terms and provisions set forth in the Company's Amended Certificate of Designation of Preferences, Rights and Limitations of Series F Preferred Stock. General. The Company's board of directors has designated up to 1,750,000 shares of the 5,000,000 authorized shares of preferred stock as Series F Preferred Stock. Rank. The Series F Preferred Stock ranks on parity to the Company's common stock. Conversion. Each share of the Series F Preferred Stock is convertible into shares of the Company's common stock (subject to adjustment as provided in the related certificate of designation of preferences, rights and limitations) at any time after the first anniversary of the issuance date at the option of the holder at a conversion price equal to the greater of $1.95 or the average closing price of the Company's common stock for the 10 trading days immediately preceding the conversion. The maximum number of shares of common stock issuable upon the conversion of the Series F Preferred Stock is 897,436. The conversion price and the maximum number of shares issuable upon conversion are subject to adjustment upon the effectiveness of the Company's previously announced 1-for-15 reverse stock split. Any shares of Series F Preferred Stock outstanding on the fifth anniversary of the issuance date will be mandatorily converted into common stock at the applicable conversion price on such date. Liquidation Preference. In the event of the Company's liquidation, dissolution or winding-up, holders of Series F Preferred Stock will be entitled to receive the same amount that a holder of common stock would receive if the Series F Preferred Stock were fully converted into shares of our common stock at the conversion price (assuming for such purposes that the Series F Preferred Stock is then convertible) which amounts will be paid pari passu with all holders of common stock. Voting Rights. Each share of Series F Preferred Stock will have one vote, and the holders of the Series F Preferred Stock will vote together with the holders of the Company's common stock as a single class. Dividends. The holders of the Series F Preferred Stock will participate, on an as-if-converted-to-common stock basis, in any cash dividends to the holders of common stock. Redemption. At any time, from time to time after the first anniversary of the issuance date, the Company has the right to redeem all or any portion of the outstanding Series F Preferred Stock at a price per share equal to $1.95 plus any accrued but unpaid dividends. Negative Covenants. As long as any shares of Series F Preferred Stock are outstanding, the Company may not amend, alter or repeal any provision of the Company's certificate of incorporation, the certificate of designation or its bylaws in a manner that materially adversely affects the powers, preferences or rights of the Series F Preferred Stock. The issuance of the shares of Series F Preferred Stock was exempt from the registration requirements of the Securities Act of 1933, as amended, in accordance with Section 4(a)(2) thereof, as a transaction by an issuer not involving a public offering. 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. S&F MEAT: Taps Bochetto & Lentz as Special Counsel -------------------------------------------------- S&F Meat Corp. seeks approval from the U.S. Bankruptcy Court for the Eastern District of Pennsylvania to hire Bochetto & Lentz, P.C. as special counsel to represent its interests in a lawsuit in Pennsylvania state court. The Debtor's financial issues started with an agreement to borrow funds from General Trading Co., Inc., as well as execute a certain cross corporate guaranty, pursuant to which it guaranteed payments to or sums owed by 476 Meat Corp., a former affiliate of the Debtor in 2010. Following 475 Meat's alleged default on the Promissory Note, GTC commenced collection actions both against 475 Meat and the Debtor, including the filing of a complaint in confession of judgment in ejectment for possession of the Debtor's premises located at 1240 East Erie Avenue, Philadelphia, PA 19124 in the Court of Common Pleas of Philadelphia County, in the action styled General Trading Co., Inc., individually and by its agent Grocery Leasing Corp. v. S&F Meat Corp., Case No. October Term 2016, No. 002792. The Firm's current hourly rates are: Jeffrey W. Ogren, Esq. $425/hour Associates $365/hour to $425/hour Paralegals $110/hour Jeffrey W. Ogren attests that B&L does not hold or represent any interest adverse to the Debtor or its estate with respect to the matters on which it is to be employed. The Firm can be reached through: Jeffrey W. Ogren, Esq. BOCHETTO & LENTZ, P.C. 1524 Locust Street Philadelphia, PA 19102 Phone: 215-735-3900 Fax: 215-735-2455 About S&F Meat Corp. S&F Meat Corp. sought protection under Chapter 11 of the Bankruptcy Code (Bankr. E.D. Pa. Case No. 17-14687) on July 10, 2017. Yleana Rodriguez, the Company's 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 Ashely M. Chan presides over the case. David B. Smith, Esq., at Smith Kane, serves as counsel to the Debtor. SAMARITAN COMMUNITY: Hires Porter Law Network as Attorney --------------------------------------------------------- New Good Samaritan Community Services seeks authorization from the U.S. Bankruptcy Court for the Northern District of Illinois to employ Porter Law Network as its attorney. The Debtor requires Porter to: a. give the Debtor legal advice with respect to its powers and duties as debtor-in-possession in the continued management of its assets; b. prepare applications, motions, complaints, orders, reports, pleadings, plans, disclosure statements or other papers on the Debtor's behalf that may be necessary in connection with this case; c. take action as may be necessary with respect to claims that may be asserted against the Debtor; and d. perform all other legal services for the Debtor which may be required in connection with this case. Porter will be paid at these hourly rates: Karen J. Porter $400 Legal Assistants $175 Robert Marshall, the Debtor's principal, paid the filing fee in the amount of $1,717 prior to the commencement of the case. Porter will also be reimbursed for reasonable out-of-pocket expenses incurred. Karen J. Porter, Esq., at Porter Law Network, assured the Court that 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 may be reached at: Karen J. Porter, Esq. Porter Law Network 230 West Monroe, Suite 240 Chicago, IL 60606 Phone: (312) 372-4400 Fax: (312) 372-4160 About New Good Samaritan Community Services New Good Samaritan Community Services filed a Chapter 11 bankruptcy petition (Bankr. N.D. Ill. Case No. 17-18184) on June 15, 2017. Karen J. Porter, Esq., at Porter Law Network, serves as bankruptcy counsel. The Debtor's assets and liabilities are both below $1 million. SCIENTIFIC GAMES: Prices Private Offering of $350 Million Notes --------------------------------------------------------------- Scientific Games Corporation announced that its wholly owned subsidiary, Scientific Games International, Inc., has priced $350 million in aggregate principal amount of 5.000% senior secured notes due 2025 at an issue price of 100.0% in a previously announced private offering. The Notes will be guaranteed on a senior basis by Scientific Games and certain of its subsidiaries. The Notes will be secured by liens on the same collateral that secures indebtedness under Scientific Games' existing credit agreement and SGI's 7.000% senior secured notes due 2022. Scientific Games intends to use the net proceeds of the Notes offering, together with cash on hand and borrowings under the Company's existing revolving credit facility, to finance the Company's pending acquisition of NYX Gaming Group Limited and its subsidiaries, including the refinancing of certain indebtedness of NYX, and to pay related fees and expenses. The offering of the Notes is not conditioned upon the consummation of the NYX Acquisition. If the NYX Acquisition is not consummated for any reason or other corporate needs arise, the Company may use the net proceeds from the offering of the Notes for general corporate purposes, which may include the prepayment of term loan borrowings under the Company's existing credit agreement. The offering is currently expected to close on Oct. 17, 2017, subject to customary conditions. The Notes will not be registered under the Securities Act of 1933, as amended or any state securities laws and, unless so registered, may not be offered or sold in the United States except pursuant to an applicable exemption from the registration requirements of the Securities Act and applicable state securities laws. The Notes will be offered only to qualified institutional buyers in accordance with Rule 144A and to non-U.S. Persons under Regulation S under the Securities Act. About Scientific Games Scientific Games Corporation (NASDAQ: SGMS) -- http://www.scientificgames.com/-- is a developer of technology-based gaming systems, table games, table products and instant games and a leader in products, services and content for gaming, lottery and interactive gaming markets. Scientific Games delivers what customers and players value most: trusted security, creative content, operating efficiencies and innovative technology. Today, the Company offers customers a fully integrated portfolio of technology platforms, robust systems, engaging content and unrivaled professional services. Scientific Games reported a net loss of $353.7 million in 2016, a net loss of $1.39 billion in 2015 and a net loss of $234.3 million in 2014. As of June 30, 2017, Scientific Games had $7.06 billion in total assets, $9.06 billion in total liabilities and a total stockholders' deficit of $2 billion. * * * As reported by the TCR on Oct. 4, 2017, Moody's Investors Service confirmed Scientific Games Corporation's ("SGC") 'B2' Corporate Family Rating and 'B2-PD' Probability of Default Rating. The confirmation of the 'B2' Corporate Family Rating reflects Moody's expectations that the proposed transaction, although primarily debt funded, does not materially change Moody's expectation for continued reduction in leverage from current levels, which is key to the company maintaining its existing rating. In July 2017, S&P Global Ratings affirmed its ratings on Scientific Games, including its 'B' corporate credit rating. The outlook is stable. "The affirmation of our 'B' corporate credit rating reflects our expectation for adjusted EBITDA coverage of interest to remain around 2x through 2018 and for the company to prioritize the use of free cash flow for debt repayment, which we believe partially mitigates currently high leverage. We are forecasting adjusted debt to EBITDA to be in the low- to mid-7x area in 2017 and around 7x in 2018, given our forecast for only modest EBITDA growth and debt reduction." SE PROFESSIONALS: Can Continue Using Cash Collateral Until Nov. 18 ------------------------------------------------------------------ Judge Donald R. Cassling of the U.S. Bankruptcy Court for the Northern District of Illinois authorized SE Professionals, S.C., to use cash collateral on an interim basis during the period of Oct. 1 through Nov. 18, 2017, to the extent set forth in the budget. The Budget provided total expenses of approximately $455,727 during the use period. In return to the Debtor's continued interim use of cash collateral, Bank First National is granted the following adequate protection for its purported secured interests in the property of the Debtor: (1) The Debtor will permit Bank First National to inspect its books and records; (2) The Debtor will maintain and pay premiums for insurance to cover all of its assets from fire, theft and water damage; (3) The Debtor will make available to Bank First National evidence of that which constitutes as its collateral or proceeds; (4) The Debtor will properly maintain its assets in good repair and properly manage its business; (5) Bank First National will be granted valid, perfected, enforceable security interests in and to the Debtor's postpetition assets, including all proceeds and products which become property of the estate, to the extent and priority of their alleged prepetition liens, but only to the extent of any diminution in the value of such assets during the period from the Petition Date through Nov. 18, 2017; and (6) On or before Oct. 15, 2017, and each month thereafter, the Debtor will provide Bank First National with a budget-to-actual report comparing actual income and expenses against those set forth on the cash collateral budget approved for the preceding calendar month. A final hearing on the Debtor's Motion to use cash collateral is scheduled to take place on Nov. 14, 2017 at 10:00 a.m. A full-text copy of the Order, dated Oct. 3, 2017, is available at https://is.gd/isWKjB About SE Professionals SE Professionals, doing business as Premier Vision, is a Wisconsin service corporation which employs licensed optometrists and sells eye-wear at three locations in the Milwaukee, Wisconsin area. SE Professionals' principal place of business is 840 W. Blackhawk St., Apt. 413, Chicago, Illinois, which is the residence of the president, sole director and sole shareholder of SE, namely, D. King Aymond, M.D. SE Professionals filed a Chapter 11 petition (Bankr. N.D. Ill. Case No. 17-18113) on June 14, 2017. King D. Aymond, M.D., president, signed the petition. At the time of filing, the Debtor estimated $100,000 to $500,000 in assets and $1 million to $10 million in liabilities. The case is assigned to Judge Donald R. Cassling. The Debtor is represented by Arthur G Simon, Esq., at Crane, Heyman, Simon, Welch & Clar. No trustee, examiner or official committee of unsecured creditors has been appointed in the case. SEADRILL LIMITED: Directors Taps Baker Tilly as Financial Advisor ----------------------------------------------------------------- Seadrill Limited, and its debtor-affiliates seek authority from the U.S. Bankruptcy Court for the Southern District of Texas to employ Baker Tilly Virchow Krause, LLP, as financial advisors to the Disinterested Directors of the Board of Directors of the Debtors. Seadrill Limited requires Baker Tilly to: a. analyze the Debtors' financial books and records and other information regarding certain related party transactions among the Debtors; b. investigate and advise the Disinterested Directors with regards to related party transactions, including the financial aspects of claims against related parties; and c. provide other matters as mutually agreed by the Disinterested Directors and Baker Tilly. Baker Tilly will be paid at these hourly rates: Technical Directors/Principals/Partners $535-$985 Senior Managers and Directors $400-$795 Managers $300-$600 Senior Consultants $225-$450 Staff Consultants $175-$295 Paraprofessionals $135-$210 Baker Tilly received prepetition advanced payments totaling $5,000,000. Baker Tilly applied $4,295,866 against the advanced payments and held an advanced payment of $704,134 as of the Petition Date. Baker Tilly will also be reimbursed for reasonable out-of-pocket expenses incurred. Susan H. Seabury, principal and general counsel for the Forensic, Litigation, and Valuation Services group of Baker Tilly Virchow Krause, LLP, assured the Court that the firm and its professionals are a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and (a) are not creditors, equity security holders or insiders of the Debtors; (b) have 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) do 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. Baker Tilly can be reached at: Susan H. Seabury BAKER TILLY VIRCHOW KRAUSE, LLP 1050 Crown Pointe Parkway, Suite 1650 Atlanta, GA 30338 Tel: (770) 206-2400 Fax: (770) 512-8770 About Seadrill Limited Seadrill Limited is a deepwater drilling contractor, providing drilling services to the oil and gas industry. It is incorporated in Bermuda and managed from London. Seadrill and its affiliates own or lease 51 drilling rigs, which represents more than 6% of the world fleet. As of Sept. 12, 2017, Seadrill employs 3,760 highly-skilled individuals across 22 countries and five continents to operate their drilling rigs and perform various other corporate functions. As of June 30, 2017, Seadrill had $20.71 billion in total assets, $10.77 billion in total liabilities and $9.94 billion in total equity. Seadrill reported a net loss of US$155 million on US$3.17 billion of total operating revenues for the year ended Dec. 31, 2016, following a net loss of US$635 million on US$4.33 billion of total operating revenues for the year ended in 2015. After reaching terms of a reorganization plan that would restructure $8 billion of funded debt, Seadrill Limited and 85 affiliated debtors each filed a voluntary petition for relief under Chapter 11 (Bankr. S.D. Tex. Lead Case No. 17-60079) on Sept. 12, 2017. Together with the chapter 11 proceedings, Seadrill, North Atlantic Drilling Limited ("NADL") and Sevan Drilling Limited ("Sevan") commenced liquidation proceedings in Bermuda to appoint joint provisional liquidators and facilitate recognition and implementation of the transactions contemplated by the RSA and Investment Agreement, and Simon Edel, Alan Bloom and Roy Bailey of Ernst & Young serve as the joint and several provisional liquidators. In the Chapter 11 cases, the Company has engaged Kirkland & Ellis LLP as legal counsel, Houlihan Lokey, Inc. as financial advisor, and Alvarez & Marsal as restructuring advisor. Slaughter and May has been engaged as corporate counsel, and Morgan Stanley served as co-financial advisor during the negotiation of the restructuring agreement. Advokatfirmaet Thommessen AS is serving as Norwegian counsel. Conyers Dill & Pearman is serving as Bermuda counsel. PricewaterhouseCoopers LLP UK, as independent auditor. Prime Clerk is the claims agent and maintains the Web site https://cases.primeclerk.com/seadrill SEADRILL LIMITED: Hires Skadden Arps as Special Counsel ------------------------------------------------------- Seadrill Limited, and its debtor-affiliates seek authority from the U.S. Bankruptcy Court for the Southern District of Texas to employ Skadden Arps Slate Meagher & Flom LLP, as special counsel to the Debtors. Seadrill Limited requires Skadden Arps to advise and represent the Debtors on five non-bankruptcy matters that arose prior to the Chapter 11 filing: Matter No. 1: advise the Debtor Seadrill Management Limited concerning compliance with U.S. and EU sanctions. Matter No. 2: advise the Debtor Seadrill Limited regarding securities-law disclosures. Matter No. 3: advise the Debtor Seadrill Limited regarding an internal review and regulatory matters in Brazil. Matter No. 4: advise the Debtor Seadrill Limited concerning compliance practices respecting agents. Matter No. 5: represent Debtors Seadrill Offshore A.S. and Seadrill Servicos de Petroleo Ltda. In connection with agency agreement arbitration claims. Skadden Arps will be paid at these hourly rates: Partners/Of Counsels $926-$1,420 Counsels/Special Counsels $922-$1,093 Associates $394-$945 Legal Assistants $209-$366 Skadden Arps will be paid a retainer in the amount of $600,000. Skadden Arps 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: Since its representation of Debtors began, other than regular, annual, Firm-wide adjustments to its standard rates, Skadden Arps has not changed its billing rates or material financial terms for the engagement, and those rates and terms have been the same prepetition and postpetition, other than that, as noted above, Skadden Arps did implement a retainer on September 11, 2017. Question: Has your client approved your prospective budget and staffing plan, and, if so for what budget period? Response: Skadden Arps and the Debtors have discussed Skadden Arps's estimated fees and expenses and staffing related to these matters. The Firm and the Debtors expect to develop a prospective budget and staffing plan for an initial period from the Petition Date to December 31, 2017, which would subsequently be amended and extended through the duration of these cases. Gary DiBianco, partner of Skadden Arps Slate Meagher & Flom 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. Skadden Arps can be reached at: Gary DiBianco, Esq. SKADDEN ARPS SLATE MEAGHER & FLOM LLP 1440 New York Avenue, N.W. Washington, D.C. 20005 Tel: (202) 371-7858 Fax: (202) 661-0558 E-mail: gary.dibianco@skadden.com About Seadrill Limited Seadrill Limited is a deepwater drilling contractor, providing drilling services to the oil and gas industry. It is incorporated in Bermuda and managed from London. Seadrill and its affiliates own or lease 51 drilling rigs, which represents more than 6% of the world fleet. As of Sept. 12, 2017, Seadrill employs 3,760 highly-skilled individuals across 22 countries and five continents to operate their drilling rigs and perform various other corporate functions. As of June 30, 2017, Seadrill had $20.71 billion in total assets, $10.77 billion in total liabilities and $9.94 billion in total equity. Seadrill reported a net loss of US$155 million on US$3.17 billion of total operating revenues for the year ended Dec. 31, 2016, following a net loss of US$635 million on US$4.33 billion of total operating revenues for the year ended in 2015. After reaching terms of a reorganization plan that would restructure $8 billion of funded debt, Seadrill Limited and 85 affiliated debtors each filed a voluntary petition for relief under Chapter 11 (Bankr. S.D. Tex. Lead Case No. 17-60079) on Sept. 12, 2017. Together with the chapter 11 proceedings, Seadrill, North Atlantic Drilling Limited ("NADL") and Sevan Drilling Limited ("Sevan") commenced liquidation proceedings in Bermuda to appoint joint provisional liquidators and facilitate recognition and implementation of the transactions contemplated by the RSA and Investment Agreement, and Simon Edel, Alan Bloom and Roy Bailey of Ernst & Young serve as the joint and several provisional liquidators. In the Chapter 11 cases, the Company has engaged Kirkland & Ellis LLP as legal counsel, Houlihan Lokey, Inc. as financial advisor, and Alvarez & Marsal as restructuring advisor. Slaughter and May has been engaged as corporate counsel, and Morgan Stanley served as co-financial advisor during the negotiation of the restructuring agreement. Advokatfirmaet Thommessen AS is serving as Norwegian counsel. Conyers Dill & Pearman is serving as Bermuda counsel. PricewaterhouseCoopers LLP UK, as independent auditor. Prime Clerk is the claims agent and maintains the Web site https://cases.primeclerk.com/seadrill SEADRILL LIMITED: Taps Houlihan Lokey as Financial Advisor ---------------------------------------------------------- Seadrill Limited, and its debtor-affiliates seek authority from the U.S. Bankruptcy Court for the Southern District of Texas to employ Houlihan Lokey Capital, Inc., as financial advisors to the Debtors. Seadrill Limited requires Houlihan Lokey to: (a) assist the Debtors in the development and distribution of selected information, documents and other materials, including, if appropriate, advise the Debtors in the preparation of an offering memorandum; (b) assist the Debtors in evaluating indications of interest and proposals regarding any Transactions from current and potential lenders, equity investors, acquirers and strategic partners; (c) assist the Debtors with the negotiation of any Transactions, including participating in negotiations with creditors and other parties involved in any Transactions; (d) provide expert advice and testimony regarding financial matters related to any Transactions, if necessary; (e) attend meetings of each Debtors' board of directors, creditor groups, official constituencies and other interested parties, as the Debtors and Houlihan Lokey mutually agree; and (f) provide such other financial advisory and investment banking services as may be required by additional issues and developments not anticipated on the Effective Date, as described in the Engagement Agreement; provided, however, that such services will not consist of matters in which any member of a Subsidiary Group is adverse to the Debtors. Houlihan Lokey will be paid on these terms: (a) Monthly Fees. Upon the first monthly anniversary of the Effective Date, and on every monthly anniversary of the Effective Date during the term of the Engagement Agreement, the Debtors shall pay Houlihan Lokey in advance, without notice or invoice, a nonrefundable cash fee of $185,000. Each Monthly Fee shall be earned upon Houlihan Lokey's receipt thereof in consideration of Houlihan Lokey accepting this engagement and performing services described. Beginning with the Monthly Fee due on September 16, 2016, 50% of the Monthly Fees previously paid on a timely basis to Houlihan Lokey shall be credited against the Restructuring Transaction Fee to which Houlihan Lokey becomes entitled hereunder (it being understood and agreed that no Monthly Fee shall be credited more than once), except that, in no event, shall such Restructuring Transaction Fee be reduced below zero. (b) Transaction Fees. The Debtors shall pay Houlihan Lokey these Transaction Fees: i. Restructuring Transaction Fees. Upon the earlier to occur of: (I) in the case of an out-of-court Restructuring Transaction (as defined below), the closing of such Restructuring Transaction; (II) in the case of an in-court Restructuring Transaction, the date of confirmation of a plan of reorganization or liquidation under Chapter 11 of the U.S. Bankruptcy Code pursuant to an order of the applicable bankruptcy court, or in the case of one or more schemes of arrangement, the date the applicable court sanctions the schemes; and (III) in the case of a Sale Transaction, the closing of such Sale Transaction, Houlihan Lokey shall earn, and the Debtors shall promptly pay to Houlihan Lokey, a cash fee ("Restructuring Transaction Fee") equal to $29,041,500, which was calculated based on the sum of (A) 0.30% of the total outstanding secured and unsecured debt obligations of the Debtors as of December 31, 2016, as set forth on Schedule A (the "Base Obligations") up to $5.0 billion, plus (B) 0.275% of the Base Obligations above $5.0 billion, but excluding (C) any unsecured debt obligations held by Hemen Holdings as of the date of this Agreement; provided, however, the Debtors and Houlihan Lokey may mutually agree to amend this Agreement to include additional obligations in Schedule A and correspondingly increase the calculated Restructuring Transaction Fee. ii. Financing Transaction Fees. Upon the closing of each Financing Transaction, Houlihan Lokey shall earn, and the Debtors shall thereupon pay immediately and directly from the gross proceeds of such Financing Transaction, as a cost of such Financing Transaction, a cash fee ("Financing Transaction Fee") equal to the sum of (I) 0.75% (fifty-percent (50%) of 1.5%) of the gross proceeds of any indebtedness raised or committed from any party, whether such indebtedness is secured, unsecured, unsubordinated or subordinated; and (II) 0.75% (fifty-percent (50%) of 1.5%) of the gross proceeds of all equity or equity- linked securities (including, without limitation, convertible securities and preferred stock) placed or committed. It is understood and agreed that if the proceeds of any such Financing Transaction are to be funded in more than one stage, Houlihan Lokey shall be entitled to its applicable compensation hereunder upon the closing date of each stage. It is further understood and agreed no Financing Transaction Fee shall be due on any capital funded by Hemen Holdings or any of its controlled affiliates. Fifty- percent (50%) of all Financing Transaction Fees paid to Houlihan Lokey shall be credited against any Restructuring Transaction Fee to which Houlihan Lokey becomes entitled, except that, in no event, will the Restructuring Transaction Fee be reduced below zero. Prior to the commencement of the Chapter 11 cases, the Debtors paid Houlihan Lokey fees of $3,515,000 for services rendered, and reasonable out-of-pocket expenses related thereto of $1,172,264.81, including a $75,000 expense advance to cover potential expenses through the Petition Date. In August 2017, Houlihan Lokey and the Debtors agreed to the Amendment to the Original Engagement Agreement to incorporate a fee cap of (a) $28,000,000 for all fees incurred from the commencement of Houlihan Lokey's engagement in February 2016 through eight months following the Petition Date, plus (b) any Monthly Fees payable after May 12, 2018. Houlihan Lokey will also be reimbursed for reasonable out-of-pocket expenses incurred. David R. Hilty, managing director and co-head of the Financial Restructuring Group of Houlihan Lokey Capital, Inc., assured the Court that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and (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. Houlihan Lokey can be reached at: David R. Hilty HOULIHAN LOKEY CAPITAL, INC. 245 Park Avenue, 20th New York, NY 10167 Tel: (212) 497-4100 Fax: (212) 661-3070 About Seadrill Limited Seadrill Limited is a deepwater drilling contractor, providing drilling services to the oil and gas industry. It is incorporated in Bermuda and managed from London. Seadrill and its affiliates own or lease 51 drilling rigs, which represents more than 6% of the world fleet. As of Sept. 12, 2017, Seadrill employs 3,760 highly-skilled individuals across 22 countries and five continents to operate their drilling rigs and perform various other corporate functions. As of June 30, 2017, Seadrill had $20.71 billion in total assets, $10.77 billion in total liabilities and $9.94 billion in total equity. Seadrill reported a net loss of US$155 million on US$3.17 billion of total operating revenues for the year ended Dec. 31, 2016, following a net loss of US$635 million on US$4.33 billion of total operating revenues for the year ended in 2015. After reaching terms of a reorganization plan that would restructure $8 billion of funded debt, Seadrill Limited and 85 affiliated debtors each filed a voluntary petition for relief under Chapter 11 (Bankr. S.D. Tex. Lead Case No. 17-60079) on Sept. 12, 2017. Together with the chapter 11 proceedings, Seadrill, North Atlantic Drilling Limited ("NADL") and Sevan Drilling Limited ("Sevan") commenced liquidation proceedings in Bermuda to appoint joint provisional liquidators and facilitate recognition and implementation of the transactions contemplated by the RSA and Investment Agreement, and Simon Edel, Alan Bloom and Roy Bailey of Ernst & Young serve as the joint and several provisional liquidators. In the Chapter 11 cases, the Company has engaged Kirkland & Ellis LLP as legal counsel, Houlihan Lokey, Inc. as financial advisor, and Alvarez & Marsal as restructuring advisor. Slaughter and May has been engaged as corporate counsel, and Morgan Stanley served as co-financial advisor during the negotiation of the restructuring agreement. Advokatfirmaet Thommessen AS is serving as Norwegian counsel. Conyers Dill & Pearman is serving as Bermuda counsel. PricewaterhouseCoopers LLP UK, as independent auditor. Prime Clerk is the claims agent and maintains the Web site https://cases.primeclerk.com/seadrill SEADRILL LIMITED: Taps KPMG as Tax Consultant --------------------------------------------- Seadrill Limited, and its debtor-affiliates seek authority from the U.S. Bankruptcy Court for the Southern District of Texas to employ KPMG LLP, as tax consultant to the Debtors. Seadrill Limited requires KPMG LLP to provide these services: Tax Provision Services (a) assist in gathering necessary year-end tax and financial information and schedules; (b) assist in the identification and computation of temporary and permanent differences; (c) compute a preliminary income tax provision for Debtors' review and approval; (d) prepare income tax related balance sheet accounts and footnote disclosures for Debtors' review and approval; and (e) assist Debtors in their efforts to work with their independent auditors to draft income tax provision work papers. Tax Consulting Services (a) provide services with respect to such matters that may arise for which the Debtors' seek KPMG LLP's advice, both written and oral. KPMG LLP will be paid at these hourly rates: Tax Provision Services Partners $625-$638 Managing Directors $575-$588 Senior Managers $537-$575 Managers $437-$525 Senior Associates $375-$388 Associates $225-$238 Para-Professionals $113-$175 Tax Consulting Services Partners $813-$830 Managing Directors $748-$765 Senior Managers $700-$748 Managers $570-$683 Senior Associates $488-$504 Associates $293-$310 Para-Professionals $147-$228 KPMG LLP received a retainer in the amount of $400,000 on August 29, 2017, which will be applied to outstanding services incurred prior to the Petition Date. During the 90-day period prior to the Petition Date, KPMG LLP received $352,000, apart from the retainer, from the Debtors for professional services performed and expenses incurred. KPMG LLP will also be reimbursed for reasonable out-of-pocket expenses incurred. Alexander N. Hanhan, principal of KPMG 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. KPMG LLP can be reached at: Alexander N. Hanhan KPMG LLP 811 Main Street Houston, TX 77002 Tel: (713) 319-2000 Fax: (713) 319-2041 About Seadrill Limited Seadrill Limited is a deepwater drilling contractor, providing drilling services to the oil and gas industry. It is incorporated in Bermuda and managed from London. Seadrill and its affiliates own or lease 51 drilling rigs, which represents more than 6% of the world fleet. As of Sept. 12, 2017, Seadrill employs 3,760 highly-skilled individuals across 22 countries and five continents to operate their drilling rigs and perform various other corporate functions. As of June 30, 2017, Seadrill had $20.71 billion in total assets, $10.77 billion in total liabilities and $9.94 billion in total equity. Seadrill reported a net loss of US$155 million on US$3.17 billion of total operating revenues for the year ended Dec. 31, 2016, following a net loss of US$635 million on US$4.33 billion of total operating revenues for the year ended in 2015. After reaching terms of a reorganization plan that would restructure $8 billion of funded debt, Seadrill Limited and 85 affiliated debtors each filed a voluntary petition for relief under Chapter 11 (Bankr. S.D. Tex. Lead Case No. 17-60079) on Sept. 12, 2017. Together with the chapter 11 proceedings, Seadrill, North Atlantic Drilling Limited ("NADL") and Sevan Drilling Limited ("Sevan") commenced liquidation proceedings in Bermuda to appoint joint provisional liquidators and facilitate recognition and implementation of the transactions contemplated by the RSA and Investment Agreement, and Simon Edel, Alan Bloom and Roy Bailey of Ernst & Young serve as the joint and several provisional liquidators. In the Chapter 11 cases, the Company has engaged Kirkland & Ellis LLP as legal counsel, Houlihan Lokey, Inc. as financial advisor, and Alvarez & Marsal as restructuring advisor. Slaughter and May has been engaged as corporate counsel, and Morgan Stanley served as co-financial advisor during the negotiation of the restructuring agreement. Advokatfirmaet Thommessen AS is serving as Norwegian counsel. Conyers Dill & Pearman is serving as Bermuda counsel. PricewaterhouseCoopers LLP UK, as independent auditor. Prime Clerk is the claims agent and maintains the Web site https://cases.primeclerk.com/seadrill SEADRILL LIMITED: Taps PwC UK as Independent Auditor ---------------------------------------------------- Seadrill Limited, and its debtor-affiliates seek authority from the U.S. Bankruptcy Court for the Southern District of Texas to employ PricewaterhouseCoopers LLP UK, as independent auditor to the Debtors. Seadrill Limited requires PwC UK to: a. with respect to Debtor Seadrill Limited and Debtor North Atlantic Drilling Limited: i. audit the consolidated financial statements of the Debtors at December 31, 2017 and for the year then ending, auditing the effectiveness of the Debtors' internal control over financial reporting as of December 31, 2017, and provide the Debtors with an integrated audit report related to those financial statements; ii. conduct interim reviews for each of the first three quarterly periods in the year ending December 31, 2017; iii. communicate with the audit committee and management about any matters that PwC UK believes may require material modifications to the quarterly financial information to make it conform with accounting principles generally accepted in the United States; iv. examine evidence supporting the amounts and disclosures in the financial statements, assess accounting principles used and significant estimates made by management, and evaluate the overall financial statement presentation; v. perform certain incremental audit and review procedures in connection with the Debtors' chapter 11 cases, including, but not limited to, analyze the Debtors' identification of pre and postpetition liabilities, review the Debtors' consolidated financial statements and reorganization expenses, performing controls testing of new or modified controls established during the bankruptcy process, and provide general accounting advice regarding the adoption of the Debtor in possession accounting; and b. with respect to Debtor North Atlantic Drilling UK Ltd. and Debtor North Atlantic Support Services Limited: i. statutory audit services for the financial year ending December 31, 2017 and subsequent years. PwC UK will be paid at these hourly rates: Partners $956-$1,200 Managing Directors $863 Directors $776-$962 Managers $604 Senior Associates $479-$604 Associates $200-$433 Staffs $130-$121 PwC UK received a retainer in the amount of GBP300,000 prior to Petition Date. As of the Petition Date, PwC UK had GBP300,000 remaining on account of the retainer, and PwC UK will credit the difference to the Debtors in future fee applications. In the 90 days before the Petition Date, the Debtors paid PwC UK GBP1,613,811 for fees, apart from the retainer and GBP16,807 for reimbursement of expenses. As of the Petition Date, the Debtors owed PwC UK GBP5,850 with respect to services provided by PwC UK prior to the Petition Date. PwC UK will also be reimbursed for reasonable out-of-pocket expenses incurred. Miles Saunders, partner of PricewaterhouseCoopers LLP UK, 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. PwC UK can be reached at: Miles Saunders PRICEWATERHOUSECOOPERS LLP UK 1 Harefield Road Uxbridge, Middlesex, UB8 1EX United Kingdom Tel: 44 1895 522000 Fax: 44 1895 522020 About Seadrill Limited Seadrill Limited is a deepwater drilling contractor, providing drilling services to the oil and gas industry. It is incorporated in Bermuda and managed from London. Seadrill and its affiliates own or lease 51 drilling rigs, which represents more than 6% of the world fleet. As of Sept. 12, 2017, Seadrill employs 3,760 highly-skilled individuals across 22 countries and five continents to operate their drilling rigs and perform various other corporate functions. As of June 30, 2017, Seadrill had $20.71 billion in total assets, $10.77 billion in total liabilities and $9.94 billion in total equity. Seadrill reported a net loss of US$155 million on US$3.17 billion of total operating revenues for the year ended Dec. 31, 2016, following a net loss of US$635 million on US$4.33 billion of total operating revenues for the year ended in 2015. After reaching terms of a reorganization plan that would restructure $8 billion of funded debt, Seadrill Limited and 85 affiliated debtors each filed a voluntary petition for relief under Chapter 11 (Bankr. S.D. Tex. Lead Case No. 17-60079) on Sept. 12, 2017. Together with the chapter 11 proceedings, Seadrill, North Atlantic Drilling Limited ("NADL") and Sevan Drilling Limited ("Sevan") commenced liquidation proceedings in Bermuda to appoint joint provisional liquidators and facilitate recognition and implementation of the transactions contemplated by the RSA and Investment Agreement, and Simon Edel, Alan Bloom and Roy Bailey of Ernst & Young serve as the joint and several provisional liquidators. In the Chapter 11 cases, the Company has engaged Kirkland & Ellis LLP as legal counsel, Houlihan Lokey, Inc. as financial advisor, and Alvarez & Marsal as restructuring advisor. Slaughter and May has been engaged as corporate counsel, and Morgan Stanley served as co-financial advisor during the negotiation of the restructuring agreement. Advokatfirmaet Thommessen AS is serving as Norwegian counsel. Conyers Dill & Pearman is serving as Bermuda counsel. PricewaterhouseCoopers LLP UK, as independent auditor. Prime Clerk is the claims agent and maintains the Web site https://cases.primeclerk.com/seadrill SEARS CANADA: To Choose Between Chairman's Bid and Liquidation -------------------------------------------------------------- Andrew Scurria and Jacquie McNish, writing for The Wall Street Journal Pro Bankruptcy, reported that Sears Canada Inc.'s top executive is making a last-ditch attempt to keep the retailer alive as its creditors press for an accelerated liquidation to settle its debts. According to the report, a special committee of the Sears Canada board will decide this week on Executive Chairman Brandon Stranzl's bid to purchase some of its stores out of bankruptcy as a going concern, Orestes Pasparakis, Esq., a lawyer for the company's bankruptcy monitor FTI Consulting Inc., said at a court hearing on Oct. 4. "We are near the end of the road. We have pushed the time limits," Mr. Pasparakis told the Ontario Superior Court of Justice, the report related. Troubled Company Reporter, citing the Journal, previously reported that Sears Canada is on the verge of liquidation FTI proposed asset sales that would undermine the chairman's pending bid to keep some stores in business. According to the report, FTI, the monitor handling Sears Canada's insolvency proceedings, plans to seek court approval to dispose of 11 stores through lease surrenders or outright sales. Sears Canada is under pressure from its bankruptcy lenders to close deals for its assets and hold going-out-of-business sales at its remaining locations, the Journal said, citing a report filed with the on the Ontario Superior Court of Justice. Mr. Stranzl has been racing to piece together his private equity-backed proposal in the face of competing offers by landlords and liquidators for the company's assets, the report said. His bid is designed to keep a slimmed-down version of Sears Canada operating and save potentially thousands of jobs in the process, the report added. Still, Mr. Stranzl's offer depends on whether the special committee thinks the remaining stores are worth more open or closed, the report noted. FTI rejected Mr. Stranzl's previous overtures over concerns that his bid contained too many financial contingencies and would provide lower recoveries to unsecured creditors compared with a liquidation, the report said, citing an FTI report submitted to the Ontario Superior Court of Justice. About Sears Canada Sears Canada Inc. is an independent Canadian digital and store-based retailer and technology company whose head office is based in Toronto. Sears Canada's unique brand format offers premium quality Sears Label products, designed and sourced by Sears Canada, and of-the-moment fashion and home decor from designer labels in The Cut @ Sears. Sears Canada also has a top ranked appliance and mattress business in Canada. Sears Canada is undergoing a reinvention, including new customer experiences at every touchpoint, a new e-commerce platform, new store concepts, and a new set of customer service principles designed to deliver WOW experiences to customers. Sears Canada operates as a separate entity from its U.S.- based co-founder, now known as Sears Holdings Corp., based in Illinois. The Company's balance sheet as of April 29, 2017, showed total assets of C$1.187 billion against total liabilities of C$1.107 billion. Amid mounting losses and liquidity constraints Sears Canada and certain of its subsidiaries on June 22, 2017, applied to the Ontario Superior Court of Justice (Commercial List) for protection under the Companies' Creditors Arrangement Act ("CCAA"), in order to continue to restructure its business. Sears Canada and its subsidiaries on June 22, 2017, were granted an order (the "Initial Order") under the Companies' Creditors Arrangement Act (the "CCAA"). Pursuant to the Initial Order, FTI Consulting has been appointed Monitor. Sears Canada and certain of its subsidiaries have obtained orders from the Ontario Superior Court of Justice (Commercial List) extending the stay period provided by the Initial Order to Oct. 4, 2017, under the Companies' Creditors Arrangement Act. The Company has engaged BMO Capital Markets, as financial advisor, and Osler, Hoskin & Harcourt LLP, as legal advisor. The Board of Directors and the Special Committee of the Board of Directors of the Company has retained Bennett Jones LLP, as legal advisor. FTI Consulting is the Court-appointed monitor. The Monitor tapped Norton Rose Fulbright Canada LLP as counsel. SERENITY HOMECARE: Narvaez Buying 2014 Chevrolet Truck for $16K --------------------------------------------------------------- Serenity Homecare, LLC, and its affiliates ask the U.S. Bankruptcy Court for the Western District of Louisiana to authorize the sale of Central Louisiana Home Healthcare, LLC's 2014 Chevrolet truck, VIN 3GCPCRECOEG232100, to Edgar Federico Narvaez for $15,500. Among the assets of the estate is the Truck registered to Central Louisiana Home Healthcare and Thomas Cupples. Wells Fargo Dealer Services holds a lien on the vehicle for $17,822. Moreover, the IRS has a general tax lien that may cover this asset. Central Louisiana Home Healthcare has obtained an offer to purchase the vehicle for $15,500 from the Buyer, an individual with no connection to its business or the estate. The proposed purchase price is substantially close to the pay-off amount owed by the Debtor to Wells Fargo, and a sale would reduce the indebtedness owed to the estate's creditors. The Debtors propose that the liens of Wells Fargo Dealer Services and the United States of America, Internal Revenue Service, be referred to the proceeds and that the proceeds thereafter be distributed unto Wells Fargo Dealer Services. The Debtors would submit that the sale in the best interest of the estate and its creditors. The U.S. Trustee can be reached at: OFFICE OF THE UNITED STATES TRUSTEE 300 Fannin Street, 3196 Federal Building Shreveport, LA 71101 Wells Fargo can be reached at: WELLS FARGO DEALER SERVICES P.O. Box 168048 Irving, TX 75016-8048 The IRS can be reached at: INTERNAL REVENUE SERVICE Attn: District Counsel P.O. Box 30509 New Orleans, LA 70190 About Serenity Homecare Serenity Homecare, LLC, is a home health care service provider in Alexandria, Louisiana. Serenity Homecare and its affiliates sought protection under Chapter 11 of the Bankruptcy Code (Bankr. W.D. La. Lead Case No. 17-80881) on Aug. 22, 2017. Thomas E. Cupples, II, its member and manager, signed the petitions. Judge John W. Kolwe presides over the cases. Each of Serenity Homecare, Antigua Investments, Central Louisiana Home, Cupples Holdings, Hospice Care of Avoyelles, Quality Home Health I and Quality Home Health estimated under $50,000 in assets. Serenity Homecare and Cupples Holdings estimated under $1 million in liabilities. Antigua Investments estimated $1 million to $10 million in liabilities. Central Louisiana Home, Hospice Care of Avoyelles and Quality Home Health I estimated under $500,000 in liabilities. Quality Home Health estimated under $100,000 in liabilities. The Debtors tapped Gold, Weems, Bruser, Sues & Rundell, in Alexandria, Louisiana, as counsel. SHADRACH MESHACH: Amends Plan to Provide More Info on Asset Sale ---------------------------------------------------------------- Shadrach, Meshach & Abednego, Inc., filed with the U.S. Bankruptcy Court for the Northern District of Alabama a second amended disclosure statement relating to their amended plan of liquidation, dated Sept. 22, 2017, to provide additional information relating to the sale of the Debtor's assets. Roots Multiclean, Ltd., has agreed to purchase the Debtor's assets. Roots is an Indian Company whose principal place of business located at R.K.G. Industrial Estate, Ganapathy, Coimbatore 641 006 Tamilnadu, India. Roots is the largest manufacturer and exporter of cleaning equipment in India. In addition to the purchase price, Roots has allocated an additional approximate sum of $325,000 to be used in negotiating with creditors of the Debtors, which Roots, in its sole discretion, deems is necessary to protect and maintain the goodwill of the Debtor, which Roots is purchasing as part of the Assets. These negotiations do not include the Debtor. The closing of the Sale will occur on or before four weeks following the Order confirming the Plan and approving the sale of assets, provided that that Order is final and non-appealable. Class 3 under the amended liquidation plan consists of the general unsecured claims. The total amount of unsecured claims exceeds $2.1 Million Dollars. Holders of general unsecured claims without priority which are Allowed Claims as determined on or before the Effective Date of the Plan shall be paid on a pro rata basis from a pool of funds created from the distribution of 5% of the proposed Purchaser's pretax profit for a period of three years. In addition to this amount, the pool will also consist of the collection of accounts receivables which belong to the Debtor. This distribution is estimated to be approximately $75,000. The Debtor believes that a distribution to Allowed General Unsecured Creditors from this pool of funds would result in an approximate distribution of 4 to 5% of the amount of each claim. This amount may increase depending upon the disallowance of certain unsecured claims. The proceeds of the Sale of the Assets will be the primary means of funding for the Plan. The Plan Administrator will use the proceeds from the Sale to the Allowed Claims for Administrative, Priority, Secured and General Unsecured Creditors. A full-text copy of the First Amended Disclosure Statement is available at: http://bankrupt.com/misc/alnb17-81731-11-129.pdf About Shadrach, Meshach & Abednego Formerly known as Victory Sweepers, Inc., Shadrach, Meshach & Abednego, Inc., is an industrial vacuum equipment supplier in Madison, Alabama. Founded in 2006 by Mark Schwarze, the company is primarily in the sweeper manufacturing business. Its first product, introduced in 2007, was a twin-engine parking area sweeper dubbed the 'Mark II.' Shadrach, Meshach & Abednego sought Chapter 11 protection (Bankr. N.D. Ala. Case No. 17-81731) on June 9, 2017, disclosing assets at $984,170 and liabilities at $3.64 million. The petition was signed by Mark R. Schwarze, president. Judge Clifton R. Jessup Jr. is assigned to the case. Heard, Ary & Dauro, LLC represents the Debtor as bankruptcy counsel. SHADRACH MESHACH: Plan Outline Okayed, Plan Hearing on Nov. 3 ------------------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of Alabama is set to hold a hearing on Nov. 3 to consider approval of the Chapter 11 plan of liquidation for Shadrach, Meshach & Abednego, Inc. The court had earlier approved the company's second amended disclosure statement, allowing it to start soliciting votes from creditors. The order, signed by Judge Clifton Jessup, Jr. on September 26, set an Oct. 30 deadline for creditors to file their objections and cast their votes accepting or rejecting the plan. About Shadrach, Meshach & Abednego Formerly known as Victory Sweepers, Inc., Shadrach, Meshach & Abednego, Inc., is an industrial vacuum equipment supplier in Madison, Alabama. Founded in 2006 by Mark Schwarze, the company is primarily in the sweeper manufacturing business. Its first product, introduced in 2007, was a twin-engine parking area sweeper dubbed the 'Mark II.' Shadrach, Meshach & Abednego sought Chapter 11 protection (Bankr. N.D. Ala. Case No. 17-81731) on June 9, 2017, disclosing assets at $984,170 and liabilities at $3.64 million. The petition was signed by Mark R. Schwarze, president. Judge Clifton R. Jessup Jr. is assigned to the case. Heard, Ary & Dauro, LLC represents the Debtor as bankruptcy counsel. SOUTHWORTH COMPANY: Wants Authority to Use Cash Collateral ---------------------------------------------------------- Southworth Company asks the U.S. Bankruptcy Court for the District of Massachusetts for authority to use the cash collateral in which ACF Finco I, LP and Byline Bank may assert an interest. Specifically, the Debtor proposes to use cash to enable it to: (i) continue limited operations, (ii) compensate its employees for prepetition and postpetition wages and benefits, purchase materials, and (iii) pay other ongoing usual and necessary expenses incurred in the operation of its business in accordance with its budget. The Budget provides total payroll and operating disbursements in the aggregate amount of $687,493 for the month of October 2017 and $255,276 for the month of November 2017. The Debtor has finished goods and partially completed work in process, having a value of $3,194,000. The Debtor asserts that if this will be completed and shipped, the value of this inventory will be maximized. As such, the Debtor plans to resume operations on a limited basis for the purpose of shipping finished goods, completing work in process and taking all other actions necessary to maximize the value of its assets. The Debtor is a party to a Loan Agreement with ACF Finco, providing for a revolving line of credit and term loan. The total amount presently due to ACF Finco is approximately $1,083,926, which includes a "last out" junior participation loan in the amount of $200,000 advanced by John G. Leness, the father of the president of the Debtor. The ACF Loans are secured by: (a) a first priority security interest in all of the personal property owned by the Debtor, (b) a second priority mortgage on the real estate located at 265 Main Street, Agawam, Massachusetts, and (c) a second priority mortgage on the real estate located at 36 Canal Rd., Turners Falls, Massachusetts. Pursuant to the ACF Loan Documents, the Debtor's receivables are to be deposited to an account at BMO Harris Bank. Accordingly, the Debtor also asks the Court to require BMO Harris Bank to turnover to the Debtor, upon receipt, all monies that it receives on account of obligations due to the Debtor, and also to authorize account debtors to pay their accounts directly to the Debtor. The Debtor is also a party to a certain Term Loan Agreement, now held by Byline Bank. The amount presently due to Byline Bank on account of the of the term note is approximately $2,233,315. The Byline Loan is secured by: (a) a first priority mortgage on the real estate located at 265 Main Street, Agawam, Massachusetts, (b) a first priority mortgage on the real estate located at 36 Canal Rd., Turners Falls, Massachusetts, and (c) a second priority security interest in all of the personal property owned by the Debtor. Based on the estimated value of the collateral securing the claims of its Secured Creditors, the Debtor submits that ACF Finco and Byline Bank enjoy a substantial equity cushion equating to adequate protection of their respective positions to which they entitled under the Bankruptcy Code. Nevertheless, the Debtor proposes to grant ACF Finco and Byline Bank replacement liens in all postpetition property of the Debtor, of the same nature and to the same extent as the liens existing as of the Petition Date, subject only to the extent that such prepetition liens are valid, enforceable and non-avoidable. A full-text copy of the Debtor's Motion, dated Sept. 28, 2017, is available at https://is.gd/yZHbyE About Southworth Company Southworth Company is a privately owned Massachusetts Corporation organized in 1839 and headquartered in Agawam, Massachusetts. In 2006, Southworth acquired the Esleeck Paper Company in Turners Falls where it operates as Turners Falls Paper Company. The Madison Park Group, a greeting card and gift company based in Seattle, Washington, was acquired in 2012 and operates as a division of the Debtor. Southworth has recently employed approximately 100 employees and has been engaged in the manufacture of specialty papers for baking and health care applications, envelopes and office paper, as well as greeting cards and gifts. Southworth Company filed a Chapter 11 petition (Bankr. D. Mass. Case No. 17-30817) on Sept. 27, 2017. The petition was signed by John S. Leness, president. At the time of filing, the Debtor estimated $1 million to $10 million in assets and $10 million to $50 million in liabilities. Judge Elizabeth D. Katz presides over the case. The Debtor is represented by Joseph B. Collins, Esq. at Hendel & Collins, P.C. SUCCESS INC: Has Final OK To Use Cash Collateral Through Oct. 31 ---------------------------------------------------------------- The Hon. Ann M. Nevins of the U.S. Bankruptcy Court for the District of Connecticut has entered a stipulated final order authorizing Success, Inc., to use cash collateral of AS Peleus LLC through Oct. 31, 2017, a variance of 10% permitted. In exchange for the use of cash collateral by the Debtor, and as adequate protection for Secured Creditor's interests, (i) the Secured Creditor is granted replacement and/or substitute liens in postpetition cash collateral. The replacement liens will have the same validity, extent, and priority that the Secured Creditor possessed as to the liens on the Petition Date. By Oct. 1, 2017, the Secured Lender is authorized and directed to pay, out of the Remaining Escrow Funds, the Town of Stratford the sum of $5,786.23, and the Town of Stratford will apply those funds towards the unpaid prepetition taxes. A copy of the final court order is available at: http://bankrupt.com/misc/ctb16-50884-263.pdf As reported by the Troubled Company Reporter on Aug. 2, 2017, the Court entered a seventh interim order authorizing the Debtor to use cash collateral of AS Peleus LLC from July 1, 2017, through Oct. 30, 2017. About Success Inc. Success, Inc., was incorporated on April 24, 1996, for the purpose of acquiring and managing real estate properties, both with existing buildings on them as well as vacant properties, residential as well as commercial. It currently owns four parcels of real property in Connecticut. Two of these properties are single family residential units, one is a commercial property and one is a vacant parcel of land. Success, Inc., filed a Chapter 11 petition (Bankr. D. Conn. Case No. 16-50884) on July 1, 2016. The petition was signed by Gus Curcio, Sr., president. The Debtor is represented by Douglas S. Skalka, Esq., at Neubert, Pepe, and Monteith, P.C. The case is assigned to Judge Julie A. Manning. The Debtor estimated assets and debt at $1 million to $10 million at the time of the filing. No unsecured creditors' committee, trustee or examiner has been appointed. On Nov. 21, 2016, the Debtor filed a proposed Chapter 11 plan of reorganization and disclosure statement. SUNEDISON INC: Court Approves Transition Deals with TERP, GLBL -------------------------------------------------------------- BankruptcyData.com reported that the U.S. Bankruptcy Court approved SunEdison Inc.'s motion for an order authorizing entry into transition services agreements between (1) SUNE and Terraform Power (TERP) and (2) SUNE and TerraForm Global (GLBL). BankruptcyData previously reported, "The Debtors have determined that entry into the Transition Services Agreements with TERP and GLBL makes good business sense and is in the best interest of their estates and creditors. As memorialized in the Settlement Agreements, the Transition Services to be provided pursuant to the Transition Services Agreements are essential to the parties' ability to effectuate and realize the full benefit of the deal the parties struck with respect to the Settlement Agreements and the Merger Transactions. Moreover, the Yieldcos would likely not have agreed to enter into the Settlement Agreements absent the assurance that the Debtors would negotiate in good faith to enter into the Transition Services Agreements. The Transition Services to be provided by the Debtors are comprised of (i) certain services that the Debtors have historically provided and the Yieldcos require facilitation and transition to provide for themselves, and (ii) certain services, such as tax and accounting services, that are currently shared between the Debtors and the Yieldcos. With respect to the non-shared Transition Services, if the Debtors did not provide such services to the Yieldcos, then the Yieldcos believe that their operations could be impacted. Given the Debtors' significant ownership stake in the Yieldcos, it is critical that the Debtors continue to provide such services, as reasonably compensated by the applicable Yieldco, until the Yieldcos are able to stand alone to ensure that the Debtors' estates are not adversely impacted." About SunEdison, Inc. SunEdison, Inc. (OTC PINK: SUNEQ), is a developer and seller of photovoltaic energy solutions, an owner and operator of clean power generation assets, and a global leader in the development, manufacture and sale of silicon wafers to the semiconductor industry. On April 21, 2016, SunEdison, Inc., and 25 of its affiliates each filed a Chapter 11 bankruptcy petition (Bankr. S.D.N.Y. Case Nos. 16-10991 to 16-11017). Martin H. Truong, the senior vice president, general counsel and secretary, signed the petitions. The Debtors disclosed total assets of $20.7 billion and total debt of $16.1 billion as of Sept. 30, 2015. The Debtors have hired Skadden, Arps, Slate, Meagher & Flom LLP as counsel, Togut, Segal & Segal LLP as conflicts counsel, Rothschild Inc. as investment banker and financial advisor, McKinsey Recovery & Transformation Services U.S., LLC, as restructuring advisors and Prime Clerk LLC as claims and noticing agent. The Debtors employed PricewaterhouseCoopers LLP as financial advisors; and KPMG LLP as their auditor and tax consultant. SunEdison also tapped Eversheds LLP as its special counsel for Great Britain and the Middle East. Cohen & Gresser LLP has also been retained as special counsel. The Debtors tapped Ernst & Young LLP to provide tax-related services. Keen-Summit Capital Partners LLC has been hired as real estate advisor. Binswanger of Texas, Inc. also has been retained as real estate agent. Sullivan & Cromwell LLP serves as counsel to TerraForm Power, Inc., and TerraForm Global, Inc. An official committee of unsecured creditors has been appointed in the case. The Committee tapped Weil, Gotshal & Manges LLP as its general bankruptcy counsel and Morrison & Foerster LLP as special counsel. Togut, Segal & Segal LLP and Kobre & Kim LLP serve as conflicts counsel. Alvarez & Marsal North America, LLC, serves as the Committee's financial advisors. Counsel to the administrative agent under the Debtors' prepetition first lien credit agreement are Richard Levy, Esq., and Brad Kotler, Esq., at Latham & Watkins. Counsel to the administrative agent under the postpetition DIP financing facility are Scott Greissman, Esq., and Elizabeth Feld, Esq., at White & Case LLP. Counsel to the Tranche B Lenders (as defined in the DIP credit agreement) and the steering committee of the second lien creditors are Arik Preis, Esq., and Naomi Moss, Esq., at Akin Gump Strauss Hauer & Field, LLP. Counsel to the administrative agent under the Debtors' prepetition second lien credit agreement is Daniel S. Brown, Esq., at Pillsbury Winthrop Shaw Pittman LLP. The collateral trustee under the Debtors' prepetition second lien credit agreement and the indenture trustee under each of the Debtors' outstanding bond issuances, is represented by Marie C. Pollio, Esq., at Shipman & Goodwin LLP. Counsel to the ad hoc group of certain holders of the Debtors' convertible senior notes is White & Case LLP's Tom Lauria, Esq. * * * On March 28, 2017, the Debtors filed their Plan of Reorganization and related Disclosure Statement. SUNVALLEY SOLAR: Board Okays 2017 Equity Incentive Plan ------------------------------------------------------- Sunvalley Solar, Inc.'s Board of Directors approved the Sunvalley Solar, Inc. 2017 Equity Incentive Plan. The purpose of the Plan is to provide a means for the Company to continue to attract, motivate and retain management, key employees, consultants and other independent contractors, and to provide these individuals with greater incentive for their service to the Company by linking their interests in the Company's success with those of the Company and its shareholders. The Plan provides that up to a maximum of 10,000,000 shares of the Company's common stock (subject to adjustment) are available for issuance under the Plan. About Sunvalley Solar Sunvalley Solar, Inc., is a California-based solar power technology and system integration company. Since the inception of its business in 2007, the company has focused on developing its expertise and proprietary technology to install residential, commercial and governmental solar power systems. Sunvalley Solar reported a net loss of $999,000 on $8.49 million of revenue for the year ended Dec. 31, 2016, compared to net income of $195,800 on $5.78 million of revenue for the year ended Dec. 31, 2015. As of June 30, 2017, Sunvalley Solar had $5.69 million in total assets, $4.68 million in total liabilities and $1.01 million in total stockholders' equity. Sadler, Gibb & Associates, LLC, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2016. The Company has suffered net losses and has accumulated a significant deficit. The auditors said these factors raise substantial doubt about the Company's ability to continue as a going concern. SUNVALLEY SOLAR: Henry Yu Quits from Board of Directors ------------------------------------------------------- Henry Yu resigned from Sunvalley Solar, Inc.'s Board of Directors effective Aug. 31, 2017. According to the Company, there were no known disagreements with Mr. Yu regarding its operations, policies, or practices. Also effective Aug. 31, 2017, William Hsien, the CEO of the Company's subsidiary Sunvalley Solar Tech, Inc., was appointed to the Board of Directors. On Oct. 2, 2017, Xueze Zheng was appointed to the Company's Board of Directors. William Hsien, the Company's newly-appointed director, serves as the CEO and a director of the Company's subsidiary Sunvalley Solar Tech, Inc. Mr. Hsien graduated from the University of California Berkeley with Bachelor of Art in Architecture. He has worked in design and construction over 15 years. With his architectural and design-build construction background, Mr. Hsien is able to run a very efficient design and construction team at Sunvalley Solar Tech Inc., providing turn-key solutions and project management in the solar industry. Mr. Hsien has been in charge of the engineering department and construction at Sunvalley over the past 8 years, helping Sunvalley to become famous for fast turnaround time and quality craftsmanship and installation of solar systems through its in-house engineering design team and construction crew. Xueze Zheng, the Company's newly-appointed director, received a Ph.D. degree in optical instruments from Tsinghua University. He is currently a director of Advanced Photonics at Wave-2-Wave, and an Advisory Board Member of Axalume Inc. He worked for Oracle formerly as a Photonics Director, Sun Microsystems as a senior staff engineer and Calient Networks Incorporated as a manager of optical engineering. Dr. Zheng is a well-recognized expert in Optic components, Opto-electronic integration, Silicon photonics and solar technology. Dr. Zheng is a senior member of IEEE and a Fellow of the Optical Society of America (OSA). He has authored or coauthored more than 200 papers in technical journals and conferences and holds 97 U.S. patents. The Company said it has not entered into any fixed compensation arrangements with Mr. Hsien or Mr. Zheng for their service as members of the Board of Directors. Mr. Hsien's compensation for his service as CEO of Sunvalley Solar Tech, Inc. is disclosed in our Annual Report on Form 10-K filed April 17, 2017. With the exception of Mr. Hsien's compensation for his service as CEO of Sunvalley Solar Tech, Inc., its newly-appointed directors have not had any material direct or indirect interest in any of the Company's transactions or proposed transactions over the last two years. About Sunvalley Solar Sunvalley Solar, Inc., is a California-based solar power technology and system integration company. Since the inception of its business in 2007, the company has focused on developing its expertise and proprietary technology to install residential, commercial and governmental solar power systems. Sunvalley Solar reported a net loss of $999,118 on $8.49 million of revenue for the year ended Dec. 31, 2016, compared to net income of $195,811 on $5.78 million of revenue for the year ended Dec. 31, 2015. As of June 30, 2017, Sunvalley Solar had $5.69 million in total assets, $4.68 million in total liabilities and $1.01 million in total stockholders' equity. Sadler, Gibb & Associates, LLC, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2016. The Company has suffered net losses and has accumulated a significant deficit. The auditors said these factors raise substantial doubt about the Company's ability to continue as a going concern. TAKATA CORP: Says on Track to Meet Feb. 2018 Deadline to Close Sale ------------------------------------------------------------------- Peg Brickley, writing for The Wall Street Journal Pro Bankruptcy, reported that Takata Corp. told a judge that it has ironed out the final details of the $1.6 billion sale of the bulk of its business to Key Safety Systems Inc. According to the report, the Japanese company is selling its business to Michigan-based Key amid a recall of defective air bags that was the largest in U.S. automotive history. The Takata-made air bags are prone to rupture, sending shrapnel flying around vehicle interiors, sometimes with deadly effect, the report related. The sale was announced earlier this year, but final deal documents have yet to be signed, a factor that worried creditors in Takata's U.S. bankruptcy, the report further related. Speaking at a hearing in the chapter 11 proceeding of the Japanese company's U.S. units, Marcia Goldstein, Esq., a lawyer for Takata U.S., offered assurances Takata is on track to meet a February 2018 deadline to close the sale, the report said. "The negotiations are completed,” Ms. Goldstein said at the start of a hearing in the bankruptcy court where Takata’s U.S. unit is implementing part of the strategy to address the defective product’s fallout. At least 17 law firms around the world still have to check deal documents in a “technical review” of the complex transaction, a bargain struck as Takata cast about for answers to its mounting legal issues, Ms. Goldstein told Judge Brendan Shannon. She said that Takata is on track to meet a February 2018 deadline to close the sale, and come up with $850 million owed on a settlement with the U.S. Justice Department over its defective air bags. In addition to the U.S. criminal investigation, Takata is facing massive damage claims in the U.S. and other countries, including claims from the major car makers, who were sued along with Takata in many cases. In recent days, Takata U.S. and Key came to agreement about one of the complications that was holding up the deal documentation—the reach of a noticing campaign—which was approved Monday. Takata will pay more than $34 million for a postcard mailing, social media and advertising campaign designed to alert an estimated 83 million people their rights could be affected by the bankruptcy. Federal bankruptcy watchdogs criticized Takata’s notice program, on the grounds the standard mail notices aren’t authorized. A lawyer for the U.S. Virgin Islands, one of the areas where weather conditions amplify the air-bag defects, said mail delivery is chancy at the best of times. After two hurricanes raked the islands, Takata’s proposed postcard campaign will be unlikely to reach many people, she said. Key, which is buying Takata businesses that weren’t involved in making the defective products, doesn’t want even a remote chance it will inherit any liability. Under U.S. bankruptcy law, Takata needs to give widespread notice, if it wants widespread relief from litigation. Car makers have been financing the recall effort, as well as Takata U.S.’s bankruptcy. The manufacturers are also lawsuit targets, defending against accusations they knew the Takata-made air bags were dangerous. About Takata Corp Japan-based Takata Corporation (TYO:7312) -- http://www.takata.com/en/-- develops, manufactures and sells safety products for automobiles. The Company offers seatbelts, airbags, steering wheels, child seats and trim parts. 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 Chapter 11 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. 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 has also tapped Chuo Sogo Law Office PC as Japan counsel. The Official Committee of Tort Claimants selected Pachulski Stang Ziehl & Jones LLP as counsel. Gilbert LLP will evaluate of the insurance policies. Sakura Kyodo Law Offices will serve as special counsel. Roger Frankel, the proposed legal representative for future personal injury claimants of TK Holdings Inc., et al., tapped Frankel Wyron LLP and Ashby & Geddes PA to serve as co-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. THERMAGEM LLC: Mercantil Seeks Appointment of Chapter 11 Trustee ---------------------------------------------------------------- Secured Creditor Mercantil Bank N.A. asks the U.S. Bankruptcy Court for the Southern District of Florida to direct the appointment of a Chapter 11 Trustee in the case of Thermagem LLC, or alternatively, to enter an order converting the case to Chapter 7 or dismissing the case. Mercantil asserts that there has been fraud, dishonesty, incompetence, or gross mismanagement of the affairs of the Debtor Thermagem conducted through its principal Eran Brosh, including with the conspiracy and collaboration of his brother Udi Brosh through Valor 26 LLC. At a minimum, there has been incompetence and gross mismanagement. Debtor Thermagem claims to have "sold" off its best inventory, to Valor 26 LLC, a brand new company almost assuredly formed just to be a front for squandering the best inventory of the Debtor Thermagem, and the Debtor has not collected or even sought collection any of the supposed corresponding Accounts Receivables. Those supposed "sales" are clearly paper fabrications, being fraudulent attempts to avoid the rights of secured creditor Mercantil Bank after Loan default. It is unknown as to whether Debtor Thermagem's inventory including its inventory supposedly "sold" to Valor 26 LLC is insured, it is unknown whether any inventory supposedly "sold" to Valor 26 LLC has been ostensibly resold, and it is unknown whether Valor 26 LLC is current with its leasehold obligations. A Chapter 11 Trustee must be appointed over the Debtor Thermagem, to secure, manage and liquidate the assets of the Debtor Thermagem including any inventory supposedly "sold" to Valor 26 LLC, and to prosecute avoidance or other claims against Eran Brosh as the Debtor's principal, and against Valor 26 LLC and its principal Udi Brosh, the brother of Eran Brosh. Alternatively, the Court should convert the case to Chapter 7, where like here it is in the best interests of the creditors. Dismissal or conversion of Chapter 11 cases is governed by Section 1112(b), which provides that a Bankruptcy court shall convert or dismiss a case, whichever is in the best interests of creditors and the estate if the movant establishes cause. Attorney for Mercantil Bank, N.A.: William M. Tuttle, II, Esq. 700 South Dixie Highway, Suite #200 Coral Gables, Florida 33146 Phone: (305) 375-8181 Fax: (305) 375-8186 Primary E-mail: wmtuttle@bellsouth.net Secondary E-mail: didisilva@bellsouth.net 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 TRANSOCEAN INC: Moody's Rates Proposed $750MM Sr. Unsec. Notes B1 ----------------------------------------------------------------- Moody's Investors Service assigned a B1 rating to Transocean Inc.'s proposed offering of $750 million senior unsecured notes due 2026. The proposed senior notes will be unsecured but will be guaranteed by certain Transocean subsidiaries and its parent company, Transocean Ltd. The proceeds from the proposed offering will be used to retire the company's 2017 senior unsecured notes and repay all 2018 maturities. The residual amount will be used for general corporate purposes which may include the funding of the cash portion of the company's acquisition of Songa Offshore SE (unrated), expected to close in the fourth quarter. All other ratings for the company, including its B2 Corporate Family Rating (CFR), remain unchanged. The outlook remains negative. "The new notes issuance is largely debt-neutral by refinancing Transocean's current debt maturities while protecting its very good liquidity position," commented Sreedhar Kona, Moody's Vice President. "However, continued issuances of priority guaranteed notes is likely to exert downward pressure on the company's other guaranteed and non-guaranteed notes over time." Assignments: Issuer: Transocean Inc. -- Senior Unsecured Regular Bond/Debenture, Assigned B1 (LGD 3) RATINGS RATIONALE The B1 rating on Transocean's $750 million senior notes due 2026 is one notch higher than the B2 CFR, reflecting the notes' structurally superior position in Transocean's capital structure relative to the remaining senior notes and unsecured revolving credit facility. The 2026 notes are guaranteed by intermediate holding company subsidiaries, effectively giving these notes, along with the company's 2023 notes of the same structure, a priority claim to the assets held by Transocean's operating and other subsidiaries. Transocean's remaining senior notes are rated Caa1, or two notches below the B2 CFR, reflecting their lack of security or subsidiary guarantees. As a result, these notes' claim to the assets held by Transocean's operating and other subsidiaries will be subordinate to the 2023 and new 2026 notes. Given the potential for the revolver to become pari passu with the 2023 and new 2026 notes or even be secured in the future, as well as the potential for additional secured debt issuances, Moody's believes the B1 and Caa1 ratings on Transocean's unsecured notes are more appropriate than what is suggested by Moody's Loss Given Default methodology. Transocean's B2 Corporate Family Rating (CFR) reflects Moody's expectation that the company's financial leverage will rise substantially in 2018 based on runoff of premium-priced contracts and Moody's outlook for very weak dayrates and stagnant rig utilization through at least 2018. The company has more new rig construction commitments than its rated peers; of the four rigs Transocean has under construction, two are being delivered to ten-year contracts. The remaining two rigs are currently scheduled for delivery in 2020 and are currently uncontracted . The B2 rating is supported by the company's industry-leading $10.2 billion revenue backlog as of July 25, 2017 and proactive measures it has taken to reduce operating costs, address debt maturities and enhance operational utilization for its active rigs. The rating also benefits from Transocean's very good liquidity and a fleet that makes it the largest participant in the deepwater drilling market. The outlook is negative, reflecting Moody's concerns that meaningful and sustained offshore drilling recovery, particularly in the deepwater, could lag into 2019. The ratings could be downgraded if it appears Debt/EBITDA will not fall below 8x in 2019 or EBITDA/Interest coverage approaches 1.5x. A material loss of backlog could also pressure the ratings. An upgrade is unlikely given Moody's expectations for rising financial leverage and weak industry conditions over the next few years. If Transocean's Debt/EBITDA is sustained below 6x beyond 2018 in an improving offshore drilling market while maintaining at least adequate liquidity, including extending its credit facility such that the 2020 maturity and capital spending are covered while maintaining sufficient excess capacity, an upgrade could be considered. The principal methodology used in these ratings was Global Oilfield Services Industry Rating Methodology published in May 2017. Transocean Inc. is a wholly-owned subsidiary of Transocean Ltd., a leading international offshore drilling contractor operating in every major offshore producing basin around the world. TRANSOCEAN INC: S&P Cut Corp Credit Rating to B, Outlook Negative ----------------------------------------------------------------- S&P Global Ratings lowered its corporate credit rating on offshore contract drilling company Transocean Inc. to 'B' from 'B+'. The outlook is negative. S&P said, "At the same time, we assigned a 'B+' issue-level rating to the company's proposed priority guaranteed notes due 2026. The recovery rating is '2', indicating our expectation of substantial (70%-90%; rounded estimate: 85%) recovery to creditors in the event of default. "In addition, we lowered the issue-level rating on the company's secured debt to 'BB-' from 'BB'. The recovery rating on the debt remains '1', indicating our expectation of very high (90%-100%; rounded estimate: 90% and 95%) recovery. "We also lowered our issue-level rating on the company's senior unsecured debt without subsidiary guarantees to 'B' from 'BB-'. We revised our recovery rating on the debt to '4' from '3', reflecting our expectation of average (30%-50%; rounded estimate: 40%) recovery in the event of default. We lowered the issue-level rating on Transocean's senior unsecured debt with subsidiary guarantees to 'B+' from 'BB-'. The recovery rating on this debt remains '2', reflecting our expectation of substantial (70%-90%; rounded estimate: 85%) recovery in the event of default. "In addition, we lowered our issue-level rating on subsidiary Global Marine Inc.'s senior unsecured debt to 'CCC+' from 'B-'. The recovery rating remains '6', reflecting our expectation of negligible (0%-10%; rounded estimate: 5%) recovery in the event of default. "The downgrades reflect our view that demand for offshore contract drilling services will remain depressed through 2019 and that Transocean's costs will be higher than we previously assumed over the next two years, resulting in higher projected debt leverage. The negative outlook reflects our view that unless the market recovers earlier than we expect or Transocean takes steps to reduce total debt, the company's credit measures will weaken through 2019 as contract backlog rolls off. "We could lower the ratings again if we expect Transocean's leverage to reach unsustainable levels or if the company's fleet contracted to a point that we viewed it as a competitive disadvantage. This would most likely occur if we no longer anticipate a recovery in demand for offshore drilling services after 2019. We could also consider another downgrade if the company's liquidity deteriorated, which could occur if it were to reduce the size of its credit facility substantially or was unable to refinance debt. "We could revise the outlook to stable if we expected Transocean's leverage to improve such that it maintains FFO to debt closer to 12% for a sustained period, which would most likely occur if the company were able to re-contract rigs as backlog rolls off, in conjunction with an industry recovery." UNI-PIXEL INC: Future Tech Buying All Assets for $1.5 Million ------------------------------------------------------------- Uni-Pixel, Inc., and Uni-Pixel Displays, Inc., ask the U.S. Bankruptcy Court for the Northern District of California to authorize the sale of all assets to Future Tech Capital, LLC, for $1,500,000, subject to overbid. A hearing on the Motion is set for Nov. 2, 2017 at 1:30 p.m. The Debtors have 16 issued patents and 58 patent applications covering key technology. They also have licenses from Microchip Technology Inc. and and CIT Technology Ltd. for additional technology under 44 issued patents and 93 patent applications belonging to CIT and Microchip. Their agreements with Microchip and CIT relate to the Uni-Pixel's XTouch brand products. Generally, the Debtors entered into two agreements with each of CIT and Microchip's predecessor, Atmel Corp.: the Atmel Patent License Agreement; the Atmel IP License Agreement; the CIT Patent License Agreement; and the CIT IP License Agreement. The initial term for all of the agreements is five years, expiring in April 2020. Uni-Pixel has the unilateral right to renew the licenses for a term of 10 years. The minimum annual royalties under both Patent License Agreements have been pre-paid through February 2018. At the same time that Uni-Pixel acquired intellectual property and patents from Amtel, on April 16, 2015, it also acquired from Amtel various equipment and facilities necessary to manufacture the touch sensors. In addition to equipment owned by Uni-Pixel, the Debtors also lease certain equipment from Boston Financial & Equity Corp. and from International Financial Services Corp. Uni-Pixel's primary secured debt is on a revolving line of credit from Western Alliance Bank through its Bridge Bank division. On Oct. 24, 2016, the Debtors entered into a Loan and Security Agreement with Bridge Bank for Credit Line. The Credit Line is for a two-year term ending on Oct. 18, 2018. Uni-Pixel is permitted to borrow up to $2.5 million on a revolving basis based on a percentage of eligible export-related accounts. Total borrowing under the line may not exceed 90% of eligible export related accounts. Borrowings under the line bear interest at the prime rate plus 1.25%. The Debtors' obligations under the Credit Line appear to be secured by all of the assets of the Debtors, including intellectual property. The Export Import Bank of the United States ("EXIM") provides credit support under the Loan Agreement, essentially guaranteeing the Debtors' obligations to Bridge Bank and permitting EXIM to assume all rights and remedies of the Bank under the Loan Agreement in the event that EXIM pays any guaranty claim to the Bank. On Aug. 22, 2017, Bridge Bank notified Uni-Pixel that it was in default under the Credit Line, and the Bank was, among other things: (i) invoking the default rate (Prime plus 6.25%); (ii) declaring all obligations immediately due and payable; (iii) cutting off further advances under the Credit Line; (iv) setting off and applying to their obligations all balances and deposits held by the bank; and (v) canceling all corporate credit cards. The Debtors' outstanding obligations under the Credit Line as of Sept. 12, 2017, are approximately $638,425, based on a letter from Bridge Bank's counsel. In November 2013, Uni-Pixel cooperated with the SEC regarding a non-public fact-finding inquiry that resulted in the SEC filing a complaint in March 2016 against Uni-Pixel and two former executives, Reed Killion (CEO) and Jeffrey Tomz (CFO). Without admitting or denying the allegations in the complaint, Uni-Pixel, Inc. consented on the same day that the complaint was filed to entry of a final judgment that provided for, among other things, a civil penalty in the amount of $750,000 (of which $505,000 remains outstanding as of the Petition Date). Uni-Pixel, or its insurance company, has advanced as agreed all invoices for all years through the end of 2015 for the defense of the two former officers in the SEC's investigation that resulted in the SEC filing the complaint against them. A portion of advancements for 2016 invoices have also been made, but Uni-Pixel disputed other 2016 invoices as containing expenses that were not reasonably incurred by the two former officers in defense of the SEC's complaint. The total amount incurred in 2016 and initially disputed by Uni-Pixel was $147,750. In October 2016, the Delaware Chancery Court appointed a former Vice Chancellor of the Chancery Court to act as a Special Master to determine whether expenses were reasonably incurred, to the extent that Uni-Pixel, Inc. and the two former officers were not capable of resolving the dispute without the assistance of the judicial process. In May 2017, the Special Master determined that it was reasonable for Uni-Pixel to advance $95,749 of the disputed fees from 2016. In addition, on Aug. 28, 2017, the Delaware Chancery Court entered an order requiring Uni-Pixel to advance defense costs to the former executives for their ongoing litigation with the SEC, in the amount of $1,404,599, which constitutes the amount for 2016 determined by the Special Master to be reasonable, plus all amounts incurred in 2017 prior to the Petition Date that Uni-Pixel had not disputed as unreasonable. The Delaware Chancery Court did not concurrently appoint a limited receiver. Thereafter, the Debtors' secured lender swept their bank accounts. Thus, the Debtors had no cash and could not retain their employees when there was no reasonable expectation that the Debtors would be able to pay those employees. They filed voluntary petitions for relief under the Bankruptcy Code on Aug. 30, 2017. Uni-Pixel believes a prompt sale of the assets is in the best interests of its creditors. Because Bridge Bank's enforcement of its remedies left Uni-Pixel without any cash to operate, and forced an immediate lay-off of all employees, reorganization is simply not feasible. Without cash for even minimal operations, and given the ongoing accrual of administrative rent obligations for the manufacturing facility, the Debtors have been under extraordinary time pressure to reach agreement on terms for a sale, liquidate assets through an auction, or convert to Chapter 7. The Debtors have been aggressively pursuing a sale of all of their assets. The assets can be grouped into two categories: the patents, intellectual property and equipment related to the manufacture of Diamond Guard products, and the manufacturing equipment and non-licensed IP for the XTouch sensors. Including the licensed intellectual property related to XTouch in a sale would likely require the buyer to negotiate the consent of the licensors, Microchip and CIT. The Debtors had neither the time nor the money to enlist the services of an investment banker or other financial professional to launch a full-scale sale effort that would allow months for marketing and due diligence. On the Petition Date, their management sent solicitation packages to all of those parties which described the assets being sold and the explained the urgent time frame that necessarily applied because the Debtors did not have any available cash. Ultimately, Future Tech was the only potential purchaser that presented both an acceptable purchase price and willingness to purchase the Assets on an expedited basis without a requirement for due diligence. Because of management's prior engagement with Future Tech, its prior due diligence investigation of Debtors and the pre-filing execution of a non-binding letter of intent between the companies, management hoped that Future Tech would continue to pursue a potential transaction. The terms of the proposed Asset Purchase Agreement reflect Future Tech's understanding of the Debtors' business and the risks related to technology transfer and intellectual property rights. The Debtors are proposing to sell substantially all of their Assets, including tangible and intangible personal property owned by the Debtors, and materials and finished goods related to their business. They are not seeking to assume and assign to Future Tech any executory contracts, including equipment leases or licenses for patents or intellectual property licensed to the Debtors by Microchip or CIT. The Assets will be sold free and clear of all liens, claims, rights, interests, and encumbrances, with all then existing liens, claims, rights, interests, and encumbrances to attach to the proceeds of the Proposed Sale. The Debtors believe that the only security interest in the Assets is held by Bridge Bank, which consents to the sale of the Assets on the terms proposed in the APA and the Sale Motion. The material terms of the proposed APA are: a. Purchase Price: $1,500,000, with a $200,000 deposit to be credited against the Purchase Price b. Purchased Assets: All machinery, equipment, and tangible property used in connection with the Debtors' pre-petition business operations; all intangible personal property owned by the Debtors, including patents and other intellectual property; and inventory, supplies, and materials owned by the Debtors. c. Excluded Assets: Any leased equipment, any interests in licenses from Microchip or CIT, and accounts receivable d. Assumed Liabilities: None, except that Buyer will be responsible for Administrative expenses of the Colorado Landlord and Key Personnel e. Breakup Fee: $75,000 f. Representations and Warranties: As is customary for transactions of this kind, except as specifically set forth in the APA, the Buyer will accept the Assets at the Closing "as is, where is" and "with all faults." g. Termination Rights: As is customary for transactions of this kind A copy of the APA attached to the Motion is available for free at: http://bankrupt.com/misc/Uni-Pixel_Inc_38_Sales.pdf Concurrent with the filing of the Sale Motion, the Debtors are their Bid Procedures Motion, which seeks approval of certain procedures to be employed in connection with the sale described in the Sale Motion. In order to allow the immediate realization of value from the Proposed Sale, the Debtors respectfully ask that any orders on the Sale Motion be effective immediately, notwithstanding the 14-day stay imposed by Bankruptcy Rule 6004(h). Future Tech's obligation to perform under the APA is conditioned upon the closing taking place as soon as practicable after entry of an order approving the Sale Motion. The Purchaser: FUTURE TECH CAPITAL, LLC Attn: Caixing Xie 940 Industrial Avenue Palo Alto, CA 94303 About Uni-Pixel The Woodlands, Tex.-based Uni-Pixel, Inc. -- http://www.unipixel.com/-- develops and markets metal mesh capacitive touch sensors for the touch-screen and flexible displays markets. The Company's roll-to-roll electronics manufacturing process patterns fine line conductive elements on thin films. The Company markets its technologies for touch panel sensor, cover glass replacement, and protective cover film applications under the XTouch and Diamond Guard brands. Uni-Pixel, Inc., and its subsidiary Uni-Pixel Displays, Inc., filed Chapter 11 petitions (Bankr. N.D. Cal. Case Nos. 17-52100 and Case No. 17-52101) on Aug. 30, 2017. The Debtors tapped Scott H. McNutt, Esq., at McNutt Law Group LLP, as bankruptcy counsel; and Crowell & Moring LLP, as special counsel. The meeting of creditors under 11 U.S.C. Sec. 341(a) was held on Oct. 3, 2017, at 1:00 p.m. Proofs of claim are due by Jan. 2, 2018. UNI-PIXEL INC: U.S. Trustee Forms Three-Member Committee -------------------------------------------------------- Guy Gebhardt, Acting U.S. Trustee for Region 21, on Oct. 3 appointed three creditors to serve on the official committee of unsecured creditors in the Chapter 11 cases of Uni-Pixel, Inc., and Uni-Pixel Displays, Inc. The committee members are: (1) King & Spalding LLP Attn: Michael Biles 500 W. 2nd Street, Suite 1800 Austin, TX 78701 (2) BVA Group Attn: Robert Manz Legacy Tower 7250 Dallas Pkwy, Suite 200 Plano, TX 75024 (3) Thomas Swan & Co. Ltd Attn: Dr. Thomas C. Porter Rotary Way, Consett Co. Durham DH8 7ND United Kingdom 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 Uni-Pixel Inc. The Woodlands, Tex.-based Uni-Pixel, Inc. -- http://www.unipixel.com-- develops and markets metal mesh capacitive touch sensors for the touch-screen and flexible displays markets. The Company's roll-to-roll electronics manufacturing process patterns fine line conductive elements on thin films. The Company markets its technologies for touch panel sensor, cover glass replacement, and protective cover film applications under the XTouch and Diamond Guard brands. Uni-Pixel, Inc., and its subsidiary Uni-Pixel Displays, Inc., filed Chapter 11 petitions (Bankr. N.D. Cal. Case Nos. 17-52100 and Case No. 17-52101) on Aug. 30, 2017. The Debtors tapped Scott H. McNutt, Esq., at McNutt Law Group LLP, as bankruptcy counsel; and Crowell & Moring LLP, as special counsel. URS MERGER: Moody's Assigns First Time B2 CFR; Outlook Stable ------------------------------------------------------------- Moody's Investors Service assigned first-time ratings to URS Merger Sub Corp. (United Road), including a B2 Corporate Family Rating (CFR) and a B2-PD Probability of Default Rating (PDR). Concurrently, Moody's assigned a B2 rating to the new senior secured (term loan) bank credit facility, co-borrowed by United Road Services, Inc. The ratings outlook is stable. Proceeds will be used to fund the acquisition of United Road, a provider of over-the-road transportation of automobiles and related logistics, by The Carlyle Group (sponsor). All of the company's existing (pre-acquisition) debt is anticipated to be repaid as part of the transaction, which will be funded primarily by the $260 million first lien term loan, $5million drawn under a new $60 million asset-based revolving credit facility (unrated), and sponsor equity. URS Merger Sub Corp. will merge into CB URS Holdings Corp. upon close of the transaction such that CB URS Holdings Corp. will be the surviving entity and primary borrower following the transaction. The following rating actions were taken: Assignments: Issuer: URS Merger Sub Corporation -- Probability of Default Rating, Assigned B2-PD -- Corporate Family Rating, Assigned B2 -- Senior Secured Bank Credit Facility, Assigned B2 (LGD 4) Outlook Actions: Issuer: URS Merger Sub Corporation -- Outlook, Assigned Stable RATINGS RATIONALE The ratings reflect the company's high exposure to the North American auto industry cycle, given a strong reliance of revenues on the production and delivery rates of automobile OEMs (70% in 2016), and a degree of concentration to such customers, which presents downside revenue risk. Moreover, Moody's anticipates that the moderating demand environment for new automobiles and light trucks will continue over the next year. The company's focus on growing its somewhat less cyclical remarketed (used car) segment should help temper the impact of declining new car sales on top-line growth. The ratings also reflect United Road's modest revenue size, low interest coverage, and relatively thin operating margins in the low-mid single digit range that leave minimal cushion in cyclical downturns and weigh on free cash flow generation, amidst competitive pricing pressures in the fragmented market. The ratings consider the company's position as a leading provider in the domestic auto carrier market on a national scale, its established relationships with a diverse base of blue chip customers and moderate leverage, which Moody's expects to remain below 5x (all metrics inclusive of Moody's standard adjustments) over the intermediate term. A relatively flexible cost structure, benefiting from an absence of union labor constraints and growing asset-light capacity as a result of increased use of independent contractors, lend further support to the ratings. The B2 rating on the senior secured bank credit facility, at the CFR level, reflects the preponderance of this class of debt in the capital structure. The facility is guaranteed by the company's domestic wholly owned restricted subsidiaries and the ultimate parent, URS Parent Corp. United Road is anticipated to maintain adequate liquidity over the next 12 months, based on expectations of near full availability under the new $60 million asset-based revolver and moderately positive free cash flow generation. The company holds minimal cash on hand, typically $5 million or lower. The revolver is anticipated to have a springing fixed charge coverage covenant of 1.0x, tested when excess availability is less than the greater of $6 million and 10% of the loan cap. The term loan is not expected to have any financial covenants. The stable rating outlook is based on expectations of supportive demand from the company's mix of OEM and remarketed business and the maintenance of at least adequate liquidity. The outlook also anticipates the company will maintain financial policies and a capital structure that support the B2 rating level. The ratings could be downgraded with a deterioration in business conditions or the company's performance, such that Moody's expects leverage to approach 5.5 times and/or weakening operating margins and EBIT-to-interest. A declining liquidity profile, including an increased reliance on revolver borrowings or negative free cash flow generation could also lead to lower ratings. An aggressive acquisition strategy or shareholder-friendly actions that compromise creditor interests would drive downward ratings pressure. Upward ratings momentum could develop with improving operating margins, at least in the high single digit range, and consistent positive free cash flow generation with amounts applied to debt reduction beyond required amortization. Expectations of debt-to-EBITDA to be sustained below 4 times and EBIT-to-interest above to 2 times, accompanied by a good liquidity profile could drive upward ratings pressure, noting also that the maintenance of a conservative balance sheet along with good liquidity is an important factor in positive ratings traction. The principal methodology used in this rating was the Global Surface Transportation and Logistics Companies published in May 2017. CB URS Holdings Corp., headquartered in Romulus, Michigan, and a parent of United Road Services, Inc., is a leading provider of over-the-road transportation of automobiles and vehicle logistics in the United States and Canada. Revenues were approximately $615 million as of the last twelve months ended in June 2017. VANTAGE SPECIALTY: S&P Affirms B- CCR Amid HIG Capital Acquisition ------------------------------------------------------------------ S&P Global Ratings affirmed its 'B-' corporate credit rating on Illinois-based Vantage Specialty Chemicals Inc. The outlook is stable. Specialty chemical company Vantage Specialty Chemicals Inc. has entered into an agreement to be acquired by private equity firm H.I.G. Capital LLC. The company plans to issue a $540 million first-lien credit facility, consisting of a $75 million cash flow revolver and a $465 million term loan, as well as a $170 million second-lien term loan credit facility. The company will use proceeds to fund the transaction and repay existing debt. S&P said, "At the same time, we assigned our 'B-' issue-level rating to Vantage Chemicals proposed $540 million first-lien credit facility. The recovery rating is '3', indicating our expectation for meaningful (50%-70%; rounded estimate: 55%) recovery in the event of payment default. Additionally, we assigned our 'CCC' issue-level rating to the company's proposed $170 million second-lien term loan. The recovery rating is '6', indicating our expectation for negligible (0%-10%; rounded estimate: 0%) recovery in the event of payment default. "We also affirmed the 'B-' issue-level rating, with a '3' recovery rating, on the existing first-lien credit facility and the 'CCC' rating, with a '6' recovery rating, on the second-lien term loan. "We will withdraw the ratings on the existing debt once it is fully repaid." All ratings on the proposed debt are based on preliminary terms and conditions. The ratings on Vantage Specialty Chemicals reflect the modestly improved profitability achieved through cost-reduction and procurement initiatives, as well as the shift to a higher-value product mix. Vantage's profitability has also benefited from the acquisition of higher-margin business Mallet & Co. in 2016. Vantage's balance sheet debt is increasing significantly as the result of the transaction, and we forecast credit measures to remain weaker than those of other commodity chemicals peers such as Cornerstone Chemical Co., with weighted-average debt to EBITDA in the 5x-6x range. S&P said, "In our base-case forecast, we would expect weighted-average debt to EBITDA in the 6x-7x range and funds from operations (FFO) to debt between 7% and 8%. We expect that Vantage will maintain EBITDA margins in the 15%-16% range as it continues to recognize the benefits from prior acquisitions and cost-savings initiatives underway." S&P said, "The stable rating outlook on Vantage reflects our expectation for modest EBITDA growth over the next year through procurement initiatives and improved product mix. We expect the company's EBITDA and cash flow generation to improve as the company integrates acquisitions and to improve its product mix in relatively stable noncyclical end markets. Additionally, we expect modest improvement based on our overall outlook for modest economic growth in the U.S. and our expectation that the company's strengths in the domestic market, its presence in Latin America, and its international distribution network will contribute to better overall volumes. Our stable outlook assumes that management and the company's owners will support credit quality and, therefore, we have not factored into our analysis any distributions to shareholders or significant debt-funded capital spending or acquisitions. Despite our expectation for EBITDA growth, we still expect that the company will maintain leverage credit measures in line with our expectations for the rating, with weighted-average debt to EBITDA above 6x. "We could lower the ratings over the next 12 months if Vantage's organic revenue growth stalled or if its margins declined significantly as the result of not recognizing its procurement and cost-savings initiatives. In addition, we could lower ratings if liquidity weakened such that sources were below 1.2x uses, if cash flow turned negative, or if we believed covenant compliance could become uncertain. We could also lower ratings should the company decide to pursue a large debt-funded acquisition, increasing leverage to unsustainable levels with debt to EBITDA greater than 9x. "We could consider an upgrade in the next 12 months if the company's growth exceeds our expectations coupled with procurement and cost-savings initiatives exceeding our expectations. In such a scenario, we would expect EBITDA margins 400 basis points (bps) greater than our expectations, resulting in FFO to debt of greater than 10% and debt to EBITDA approaching 6x on a sustained basis. We would also need to believe the company's financial sponsors would remain supportive of maintaining credit metrics at these levels." ZEO HEALTH: Hires K&L Gates as Litigation Counsel ------------------------------------------------- Zeo Health Ltd., seeks authorization from the U.S. Bankruptcy Court for the Southern District of New York to employ K&L Gates as local California counsel for the Debtor. The Debtor needs K&L Gates to represent it in the matter People of the State of California, ex rel. Xavier Becerra, Attorney General v. Zeo Health Ltd., Regal Supplements LLC, Micah Portney, et al. The State of California alleges that the Debtor violated California Business and Professions Code section 17500 et seq. (the False Advertising Law) and Business and Professions Code section 17200 et seq. (the Unfair Competition Law) with respect to several of its zeolite health "cleansing" products that it advertised, sold and/or distributed in California. The State seeks civil penalties pursuant to the False Advertising Law and the Unfair Competition Law, and injunctive relief prohibiting Debtor from making false and misleading claims about the subject products, and from offering them for sale in California in the current formulations. These matters have been largely resolved between Debtor and California. California Counsel is necessary in order to finalize a settlement and bring the Action to a conclusion, the Debtor says. K&L Gates will be paid at these hourly rates: Edward P. Sangster $725 Paralegal/Legal Assistant $275 K&L Gates will also be reimbursed for reasonable out-of-pocket expenses incurred. Edward P. Sangster, Esq., a partner at K&L Gates 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. K&L Gates may be reached at: Edward P. Sangster, Esq. K&L Gates LLP 4 Embarcadero Center, Suite 1200 San Francisco, CA 94111-5994 Tel: 415.882.1028 Fax: 415.882.8220 E-mail: ed.sangster@klgates.com About Zeo Health Ltd. Zeo Health, Ltd. is a corporation engaged in selling a supplement known as Zeolite, which is mined from volcanic ash. Zeo Health is an internet-based business with an office in Valley Cottage, New York. It is the managing member and sole owner of another corporation Regal Supplements LLC. The Debtor sought protection under Chapter 11 of the Bankruptcy Code (Bankr. S.D.N.Y. Case No. 17-22963) on June 19, 2017. Micah Portney, 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 $100,000. Judge Robert D. Drain presides over the case. No trustee or official committee of unsecured creditors has been appointed. ZETTA JET: Interim Cash Use Until Oct. 5 Approved ------------------------------------------------- Judge Sandra R. Klein of the U.S. Bankruptcy Court for the Central District of California authorized Zetta Jet USA, Inc., and parent Zetta Jet Pte. Ltd. to use cash collateral on an interim basis pending the final hearing. The Court has scheduled a hearing to consider entry of final order authorizing use of cash collateral will be held on Oct. 5, 2017 at 8:30 a.m. Any reply to any opposition to the granting of the Motion on a final basis must be filed and served no later than Oct. 3. The Debtors are authorized to use all cash and cash collateral currently maintained in the Debtors' accounts held by HSBC aka The Hongkong and Shanghai Banking Corporation Limited, Singapore Branch and all cash and cash collateral which may subsequently be deposited into the Accounts for immediate and necessary expenses, but only as necessary and appropriate to fund payroll payments, fuel purchases, maintenance and repair expenses, fly permits and licenses, and other similar costs immediately required to operate chartered flights through the date and time of the Final Hearing, and to avoid immediate and irreparable harm. HSBC will not impose any freeze or administrative hold on the Accounts so that the Debtors are able to use all cash and cash collateral in the Accounts, to the extent necessary to pay the immediate and necessary expenses in the ordinary course of business, including, without limitation, the payroll payments totaling approximately $800,000 which will need to be funded on September 28, 2017 (Pacific time) to ensure the timely payment of wages, commissions and all applicable withholding and payroll taxes to the employees of Zetta Jet PTE due on September 29, 2017 (Singapore time). HSBC will have adequate protection by way of a possessory lien in the subsequently deposited and any other cash and cash collateral in the Accounts to the same extent, validity, priority, and perfection as HSBC had as of the date that the Debtors filed for bankruptcy. As additional adequate protection for the use of cash collateral, the Debtors waive any and all objections to the extent, validity, priority and perfection of the Possessory Liens held by HSBC in the cash and cash collateral in the Accounts. Furthermore, to the extent that the aggregate balance in the Accounts declines below the total amount in the Accounts as of Sept. 20, 2017, HSBC will be entitled to: (a) valid, enforceable, non-avoidable and fully perfected replacement liens on, and security interests in, all assets of the Debtors, including accounts receivable of the Debtors, which lien will be first priority as to unencumbered assets and junior as to existing, valid enforceable liens on any encumbered assets; and (b) super-priority administrative expense priority claims against the Debtors with priority over any and all administrative expenses and claims asserted against the Debtors or their respective bankruptcy estates. A full-text copy of the Order, dated Sept. 28, 2017, is available at https://is.gd/6D3nvv About Zetta Jet Zetta Jet -- http://www.zettajet.com/-- is a luxury jet operator based in Singapore. Zetta Jet is a Federal Aviation Administration certificated air carrier and the first only part 135 operator authorized to conduct Polar flights, enabling Zetta Jet to optimize routes without limitation. Zetta Jet's fleet of aircraft are equipped with KuBand wi-fi, are capable of flying the longest routes, and have the most advanced navigational instruments on board. Zetta Jet has sales and support offices in New York, London, San Jose, Shanghai and Singapore. Zetta Jet USA, Inc., formerly known as Advanced Air Management, Inc., and its affiliate Zetta Jet PTE Ltd. sought Chapter 11 protection (Bankr. C.D. Cal. Case Nos. 17-21386 and 17-21387) on Sept. 15, 2017. The cases are jointly administered under Lead Case No. 17-21386. The petitions were signed by Michael A. Maher, chief executive officer and president. At the time of filing, the Debtors estimated assets and liabilities ranging from $50 million to $100 million. Judge Sandra R. Klein presides over these cases. The Debtors are represented by Ron Bender, Esq. and John-Patrick M Fritz, Esq. at Levene, Neale, Bender, Yoo & Brill, L.L.P. [*] McDonald Hopkins Elects Four Attorneys to Firm's Membership --------------------------------------------------------------- McDonald Hopkins LLC has announced the election of four attorneys to the firm's membership. McDonald Hopkins, with offices in Cleveland, Columbus, Detroit, Chicago, West Palm Beach and Miami, named Alexa Guevara (West Palm Beach), Joshua Gadharf (Detroit), Jason Harley (Columbus) and Ilirjan Pipa (Cleveland) members, effective October 1, 2017. "This year we are privileged to recognize and promote four attorneys for their expertise, consistently high-level of client service and their entrepreneurial spirit," said Shawn M. Riley, president of McDonald Hopkins. "All four attorneys are rising stars who have demonstrated leadership qualities and expertise in their practice areas." Alexa Guevara (West Palm Beach) has experience representing developers of commercial, residential, retail and equestrian projects in financing, leasing, sale/leaseback, acquisition, workout and development transactions. She has represented property owners, contractors and sub-contractors in various construction and related service agreements and Florida Construction Lien Law Compliance. Ms. Guevara also has represented developers and non-profit organizations in projects financed with historic and new market tax credits. She also has experience representing private and institutional lenders in short term and permanent financing transactions, workout negotiations and forbearance arrangements, loan purchase and sale transactions. Ms. Guevara earned a J.D. from the University of Florida in 2002 and received a B.B.A. from the University of Notre Dame in 1997. Joshua Gadharf (Detroit) is in the Business Restructuring Services Department and counsels clients on strategic alternatives in distressed business settings. He regularly represents public and private companies, directors, officers, lenders, creditors, shareholders and strategic and financial investors. Mr. Gadharf's debtor practice involves advising companies and their boards of directors in business restructurings scenarios ranging from out-of-court restructurings to Chapter 11 reorganizations and liquidations. He also regularly advises boards and management teams on strategic, corporate and governance matters and regularly litigates in federal and state courts. Selected for inclusion as a Michigan Rising Star (2015-2017) by Super Lawyers, Mr. Gadharf is a member of the Turnaround Management Association, Turnaround Management Association – NextGen and the American Bankruptcy Institute. Mr. Gadharf earned a J.D., with honors, from Illinois Institute of Technology's Chicago-Kent College of Law in 2008. He received a B.A., with honors, from Washington University in St. Louis in 2003. Jason Harley (Columbus) is experienced in complex litigation matters in the areas of construction, general business, and oil and gas. Prior to entering the legal profession, Mr. Harley gained experience in the construction industry as a project engineer for a mechanical contractor and a project lead for an MEP design engineering firm. Recognized by Super Lawyers as an OhioRising Star (2014-2017), Mr. Harley is a member of the American Bar Association, Ohio State Bar Association, Columbus Bar Association, the Associated General Contractors of Ohio and the Builders Exchange of Central Ohio. Mr. Harley earned a J.D., magna cum laude, from Capital University Law School in 2008. He received a B.S. from Virginia Polytechnic Institute and State University in 2002. Ilirjan Pipa (Cleveland) has significant experience in securities, mergers and acquisitions (M&A) and general corporate transactions. He has represented public and private companies operating in a variety of industries related to negotiating and drafting M&A transaction documents and offering documents, negotiating and drafting general corporate agreements and drafting and filing the 1933 Act and 1934 Act filings for public companies. Fluent in Albanian, Mr. Pipa received his J.D. from Case Western Reserve University School of Law, an M.B.A. from Case Western Reserve University Weatherhead School of Management and his B.A. from Baldwin Wallace University. About McDonald Hopkins Founded in 1930, McDonald Hopkins -- http://www.mcdonaldhopkins.com/-- is a business advisory and advocacy law firm with locations in Chicago, Cleveland, Columbus, Detroit, Miami, and West Palm Beach. With more than 50 service and industry teams, the firm has the expertise and knowledge to meet the growing number of legal and business challenges our clients face. [*] Patrick Trostle Joins Thompson & Knight's Bankruptcy Practice ----------------------------------------------------------------- Thompson & Knight LLP on Oct. 2, 2017, disclosed that Patrick J. Trostle has joined the Firm as a Partner in its New York office in the Bankruptcy and Restructuring Practice Group. "With 25 years of experience, Mr. Trostle will add immediate depth to our nationally recognized Bankruptcy and Restructuring Practice. He will spearhead our distressed investing practice in New York City," said David M. Bennett, the Firm's Bankruptcy and Restructuring Practice Leader. "Patrick's leadership skills and experience will complement our existing New York presence and position us to better service our clients. We simply are delighted to have him on our team." Mr. Trostle focuses his practice on complex restructuring and Chapter 11 reorganizations, including litigation related to troubled or insolvent businesses. He has extensive experience in cross-border restructurings and in the evaluation and acquisition of distressed debt, assets, and businesses. He has represented a number of the world's largest hedge funds in a variety of matters, including disputes involving mortgage-backed securities, derivatives, and other structured products. He has been involved in a number of landmark bankruptcy cases, including as appellate counsel in multiple cases before the United States Supreme Court. Notably, Mr. Trostle served as a team leader in the representation of the court-appointed examiner in the Lehman Brothers bankruptcy case, and as co-debtor's counsel in the General Motors Chapter 11 case regarding the sale of its assets to a newly formed entity sponsored by the United States Treasury. Recognized for his legal work, Mr. Trostle has been selected for inclusion in New York Metro Super Lawyers(R) by Thomson Reuters (2010-2017) and The Legal 500 U.S. by Legalease (2013). Mr. Trostle is the Former Vice Chairman of the Business Bankruptcy Trust Indenture Subcommittee of the American Bar Association and a member of the Advisory Board of the Commercial Law Centre for Harris Manchester College – University of Oxford. He was recently appointed Chair of the Advisory Board for the Institute of Transnational Commercial Law at Queen Mary University of London. He often speaks on issues related to insolvency, restructuring, and bankruptcy. Mr. Trostle has received several awards for his pro bono representation of a United States charity operating in Rwanda, a project that created the largest grid-connected solar field in east Africa. The National Law Journal recognized his efforts on its "Pro Bono Hot List." His work was also honored by American Lawyer with its Global Legal Award for Citizenship and by the Financial Times in its North American Innovative Lawyers report as a "standout" – the publication's highest rating. Mr. Trostle received a J.D. from Vermont Law School in 1992 and a B.A., with highest honors, from Trinity College in 1989. He also attended the University of Oxford, and he served as a law clerk for the United States Bankruptcy Court in the Southern District of New York. Prior to joining Thompson & Knight, he was a partner at an international law firm in New York and served as Chair of its New York Restructuring and Bankruptcy Practice. Mr. Trostle is admitted to practice in New York and Connecticut. About Thompson & Knight Established in 1887, Thompson & Knight -- http://www.tklaw.com/-- is a full-service law firm with more than 300 attorneys. The Firm provides legal solutions to clients and communities around the world and is particularly recognized for its depth of experience and capabilities on behalf of the energy industry. Thompson & Knight has been named "Law Firm of the Year" in Oil & Gas Law in U.S. News-Best Lawyers(R) "Best Law Firms" for 2011-2013, 2015, and 2017. This year, Thompson & Knight proudly celebrates 130 years of service. [*] Richard Levin Named Collier on Bankruptcy Co-Editor-in-Chief ---------------------------------------------------------------- Jenner & Block Partner Richard Levin has been named co-editor-in-chief of Collier on Bankruptcy. An author of the 1978 United States Bankruptcy Code, Mr. Levin is internationally recognized as one of the foremost restructuring, bankruptcy and creditor-debtor rights lawyers in complex bankruptcy litigation, transactional and special situations. With over 40 years in the practice, he has gained a reputation by leading or playing a major role in numerous precedent-setting domestic and cross-border insolvency proceedings. More recently, Mr. Levin advised on the Detroit Institute of Arts (DIA) on the City of Detroit's bankruptcy case, coordinating a broad effort that protected the DIA's priceless collection from the city's creditors, and negotiated the first and most favorable settlement of clawback claims in the Bernard L. Madoff Investment Securities SIPA proceeding. He currently is a member of the Jenner & Block team advising the Official Committee of Retired Employees of the Commonwealth of Puerto Rico in connection with the restructuring proceedings. Mr. Levin first began his association with Collier on Bankruptcy in 1979 as a consulting editor and contributing author. He has served on the Collier on Bankruptcy Board of Editors since 1997. Mr. Levin, co-chair of Jenner & Block's Restructuring and Bankruptcy Practice, joins Henry J. Sommer who has served as co-editor-in-chief since 2002. The flagship bankruptcy treatise from LexisNexis(R) Matthew Bender(R), Collier on Bankruptcy is written and edited by leading scholars, judges and practitioners, who bring an unparalleled breadth and depth of expertise to the field. The editors and authors are not only building upon a 120-year-old legacy, but are creating a practical and timely resource that is tailored for today's busiest lawyers. The treatise is updated four times a year to reflect the evolving law. Since the enactment of the US Bankruptcy Code in 1978, Collier on Bankruptcy has been cited over 24,000 times by the courts. It was first cited by the US Supreme Court in 1905, and most recently in 2017. Mr. Levin is a member and the former chair of the National Bankruptcy Conference and is a Fellow of the American College of Bankruptcy. He was a consultant to the World Bank and the Central Bank of Brazil regarding Brazil's 2005 bankruptcy legislation. Since 2002, he has served as a faculty member at the Federal Judicial Center's Bankruptcy Judge Workshops, and he was a lecturer in law at Harvard Law School. He is a sought-after speaker and author on a wide range of bankruptcy issues. About Jenner & Block's Restructuring and Bankruptcy Practice Lawyers in Jenner & Block's Restructuring and Bankruptcy Practice handle a wide range of matters in high-profile and complex corporate and municipal reorganizations and related litigation across the United States. The firm also has experience in bankruptcy cases involving financial fraud, corporate malfeasance and mass torts. The firm's lawyers represent public and private companies, investors, lenders, creditors or equity holders in bankruptcy proceedings, out-of-court restructurings, debt for equity exchanges, internal reorganizations, and distressed asset purchases and sales and provide advice on credit issues, derivatives, structured finance and other sophisticated financial instruments, as well as other insolvency-related issues. About Jenner & Block Jenner & Block is a law firm with global reach, with more than 500 lawyers and offices in Chicago, London, Los Angeles, New York and Washington, DC. The firm is known for its prominent and successful litigation practice and experience handling sophisticated and high-profile corporate transactions. Firm clients include Fortune 100 companies, large privately held corporations, financial services institutions, emerging companies and venture capital and private equity investors. The American Lawyer named the firm as the #1 pro bono firm in the United States, a distinction it has had seven of the past 10 years; the firm has been ranked among the top 10 in this category every year since the ranking began in 1990. [] Goodwin Elects 12 New Partners to Firm's Partnership ------------------------------------------------------- Goodwin, a Global 50 law firm, on Oct. 2, 2017, announced that 12 lawyers have been elected to the firm's partnership, effective Oct. 1. "We are delighted to welcome our new partners. These outstanding lawyers -- committed to our long-standing culture of client service and collaboration -- exemplify the very best of Goodwin, said David Hashmall, Goodwin's Chairman. "We look forward to the many contributions this next generation of talent will bring to our firm and our clients." The newly elected partners include: Ed Amer (Private Equity; Boston) represents private equity and venture capital firms, operating companies and investors in a broad range of transactions, including leveraged buyouts, carve-outs, exits, growth equity financings and general corporate representation, with a particular focus on the healthcare and life sciences industries. Joseph Bernardi (Private Equity; Boston) represents private equity firms and strategic investors in a variety of transactions, with a focus on mergers and acquisitions, leveraged buyouts, growth equity investments, distressed acquisitions and recapitalizations. Sarah Bock (ERISA & Executive Compensation; Boston) advises both public and private companies with respect to executive compensation matters, as well as the employee benefit and compensation aspects of mergers and acquisitions, financings, initial public offerings and other corporate transactions. Oreste Cipolla (Private Equity; New York) advises private equity and venture capital funds and their portfolio companies on a wide range of U.S. and cross-border corporate matters, including leveraged buyouts, growth equity and venture capital investments, and other equity and debt financings, with a focus on technology, food and beverage, healthcare and education. William Collins (Technology and Life Sciences; Boston) advises public and private companies across the life sciences industry, including biotechnology, pharmaceutical and medical device companies. His practice includes extensive experience with public and private securities offerings, IPOs, mergers and acquisitions, collaborations, and other complex transactions, as well as general corporate matters. Gregory Fox (Financial Restructuring; New York) represents debtors, creditors, committees, investors, purchasers, and other parties-in-interest in bankruptcy proceedings, out-of-court restructurings and insolvency-related litigations. Kevin Grumberg (Private Equity; New York) represents private equity sponsors, public and private companies, financial institutions and other debt investors in structuring and negotiating secured and unsecured financing transactions, including senior, mezzanine and subordinated debt facilities, acquisition-financing transactions, working capital facilities and loan workouts and restructurings. Nathan Hagler (Technology and Life Sciences; Silicon Valley) represents clients through the entire corporate life cycle, including pre-incorporation planning, general corporate representation and counseling, venture capital financings, and mergers and acquisitions. Kevin Lam (Technology and Life Sciences; Silicon Valley) advises clients on a broad range of intellectual property, technology, commercial and privacy matters, including the acquisition, management, licensing and commercialization of intellectual property and partnering transactions. Seo Salimi (Technology and Life Sciences; New York) focuses on corporate transactions and securities laws with a particular emphasis on representing life sciences clients in public and private capital markets transactions. Samuel Sherry (IP Litigation; Boston) represents clients in a broad range of intellectual property-related litigations involving pharmaceuticals, software, communications, computer hardware, optical storage and medical device technologies. Amanda Westendorf (Technology and Life Sciences; San Francisco) represents companies through their corporate life cycle, including general corporate representation and counseling, venture capital financings, public offerings, corporate governance and public company representation, and mergers and acquisitions. About Goodwin Goodwin -- http://www.goodwinlaw.com/-- has 1,000 plus lawyers across the United States, Europe and Asia focusing on complex transactions, high-stakes litigation and world-class advisory services in the financial, life sciences, private equity, real estate and technology industries. [^] BOOK REVIEW: Oil Business in Latin America: The Early Years --------------------------------------------------------------- Author: John D. Wirth Ed. Publisher: Beard Books Softcover: 282 pages List price: $34.95 Review by Gail Owens Hoelscher Buy a copy for yourself and one for a colleague on-line at http://is.gd/DvFouR This book grew out of a 1981 meeting of the American Historical Society. It highlights the origin and evolution of the state- owned petroleum companies in Argentina, Mexico, Brazil, and Venezuela. Argentina was the first country ever to nationalize its petroleum industry, and soon it was the norm worldwide, with the notable exception of the United States. John Wirth calls this phenomenon "perhaps in our century the oldest and most celebrated of confrontations between powerful private entities and the state." The book consists of five case studies and a conclusion, as follows: * Jersey Standard and the Politics of Latin American Oil Production, 1911-30 (Jonathan C. Brown) * YPF: The Formative Years of Latin America's Pioneer State Oil Company, 1922-39 (Carl E. Solberg) * Setting the Brazilian Agenda, 1936-39 (John Wirth) * Pemex: The Trajectory of National Oil Policy (Esperanza Duran) * The Politics of Energy in Venezuela (Edwin Lieuwen) * The State Companies: A Public Policy Perspective (Alfred H. Saulniers) The authors assess the conditions at the time they were writing, and relate them back to the critical formative years for each of the companies under review. They also examine the four interconnecting roles of a state-run oil industry and distinguish them from those of a private company. First, is the entrepreneurial role of control, management, and exploitation of a nation's oil resources. Second, is production for the private industrial sector at attractive prices. Third, is the integration of plans for military, financial, and development programs into the overall industrial policy planning process. Finally, in some countries is the promotion of social development by subsidizing energy for consumers and by promoting the government's ideas of social and labor policy and labor relations. The author's approach is "conceptual and policy oriented rather than narrative," but they provide a fascinating look at the politics and development of the region. Mr. Brown provides a concise history of the early years of the Standard Oil group and the effects of its 1911 dissolution on its Latin American operations, as well as power struggles with competitors and governments that eventually nationalized most of its activities. Mr. Solberg covers the many years of internal conflict over oil policy in Argentina and YPF's lack of monopoly control over all sectors of the oil industry. Mr. Wirth describes the politics and individuals behind the privatization of Brazil's oil industry leading to the creation of Petrobras in 1953. Mr. Duran notes the wrangling between provinces and central government in the evolution of Pemex, and in other Latin American countries. Mr. Lieuwin discusses the mixed blessing that oil has proven for Venezuela., creating a lopsided economy dependent on the ups and downs of international markets. Mr. Saunders concludes that many of the then-current problems of the state oil companies were rooted in their early and checkered histories." Indeed, he says, "the problems of the past have endured not because the public petroleum companies behaved like the public enterprises they are; they have endured because governments, as public owners, have abdicated their responsibilities to the companies." Jonh D. Wirth is Gildred Professor of Latin American Studies at Standford University. ********* 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 ***