/raid1/www/Hosts/bankrupt/TCR_Public/180827.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Monday, August 27, 2018, Vol. 22, No. 238
Headlines
18 AUDUBON PLACE: Case Summary & 8 Unsecured Creditors
37 CALUMET STREET: Seeks Nunc Pro Tunc Allowance of Payments
581 HIGUERA RESTAURANT: Voluntary Chapter 11 Case Summary
ACE HOLDING: Case Summary & 5 Unsecured Creditors
AIR MEDICAL: Bank Debt Trades at 2% Off
ALABAMA PETROLEUM: U.S. Trustee Unable to Appoint Committee
ALLURE NAIL: Amends Plan to Modify Treatment of Summit Bank's Claim
ALTICE FRANCE: Bank Debt Trades at 4% Off
ANCHOR GLASS: Bank Debt Trades at 12% Off
B.L.E. INC: Case Summary & 20 Largest Unsecured Creditors
BARTLETT TRAYNOR: Case Summary & 17 Unsecured Creditors
BAUSCH HEALTH: Moody's Affirms B3 CFR & Alters Outlook to Pos.
BAYTEX ENERGY: Moody's Hikes CFR to B1 & Sr. Unsec. Rating to B2
BAYTEX ENERGY: S&P Hikes ICR & Unsec. Debt Rating to 'BB'
BELK INC: Bank Debt Trades at 17% Off
BIOSTAR PHARMACEUTICALS: Gets New Delisting Notice from Nasdaq
BLACK RIDGE: Modifies Peerless & ElectraWorks Settlement Agreement
BLACKRIDGE TECHNOLOGY: Seven Directors Elected by Stockholders
BROWARD COLLISION: TCA Seeks to Bar Cash Use, Wants Trustee
BROWARD COLLISION: U.S. Trustee Unable to Appoint Committee
CALIFORNIA RESOURCES: Amends Credit Facility with JPMorgan
CALIFORNIA RESOURCES: Increases Size of Board to 10 Members
CALIFORNIA RESOURCES: Incurs $82 Million Net Loss in 2nd Quarter
CHINA COMMERCIAL: Regains Compliance with Nasdaq Listing Rules
CHURCHILL DOWNS: Moody's Ups CFR to Ba2 & Secured Loans to Ba1
CONCORDIA INTERNATIONAL: Files Copies of Recapitalization Docs.
COTT CORP: S&P Alters Outlook to Stable & Affirms 'B' ICR
CROSSROAD FAMILY: Case Summary & 20 Largest Unsecured Creditors
CROSSROADS FAMILY FARMS: Case Summary & Top Unsecured Creditors
CURAE HEALTH: Case Summary & 30 Largest Unsecured Creditors
CYTOSORBENTS CORP: Awarded up to $3M in SBIR Bridge Funding
DANAOS CORP: Willkie Advises Lenders on $2.2-Bil. Restructuring
DANAOS CORPORATION: Closes Comprehensive Debt Refinancing
DANIEL EKE: Final Order to Use Cash Collateral Entered
DFH NETWORK: Case Summary & 20 Largest Unsecured Creditors
DISASTERS STRATEGIES: U.S. Trustee Unable to Appoint Committee
DIVERSE LABEL: Has Access to Cash Collateral Until Sept. 25
DPW HOLDINGS: Extends Deadline to Organize a Joint Venture
DR. SHABNAM QASIM: May Use Cash Collateral Until Sept. 6, 2018
DULUTH TRAVEL: To Pay Unsecured Creditors in Full at 2% Over 2 Yrs.
ELKHORN JONES: Case Summary & 20 Largest Unsecured Creditors
EMC HOTELS: Trustee Says Lender Consents to Cash Access
FIELDPOINT PETROLEUM: Gets Capital Raise Proposal to Pay Debt
FLIPPING EGG: Has Interim Approval to Use Cash Collateral
FLORIDA PAVEMENT: U.S. Trustee Unable to Appoint Committee
FOUR SEASONS: Moody's Hikes CFR & 1st Lien Loans Rating to Ba3
FROM DUSK TIL DAWN: Case Summary & 4 Unsecured Creditors
FURNITURE FACTORY: Cash Collateral Use Extended Until Sept. 30
GILDED AGE: Seeks Interim Approval to Access Cash Collateral
GUMP'S HOLDINGS: Has Interim Approval to Access Sterling Cash
HARLAND CLARKE: Bank Debt Trades at 7% Off
HIM & FORTUNE: U.S. Trustee Unable to Appoint Committee
HOUTEX BUILDERS: Case Summary & 20 Largest Unsecured Creditors
IBEX, LLC: Reaches Agreement on Use of Cash Collateral
ICAGEN INC: Incurs $3.5 Million Net Loss in Second Quarter
INNOVIVA INC: S&P Affirms B+ Issuer Credit Rating, Outlook Stable
INVESTMENT GROUP: Case Summary & 15 Unsecured Creditors
IQOR HOLDINGS: S&P Cuts Issuer Credit Rating to 'CCC', Outlook Neg
IQOR US: Moody's Cuts CFR to Caa2, 1st Lien Loan Rating to Caa1
JASON INC: Moody's Hikes CFR to B3, Outlook Stable
JC PENNEY: Bank Debt Trades at 5% Off
KINGS AUTO: Emergency Motion to Use Cash Collateral Granted
LDJ ENTERPRISE: Oct. 23 Hearing on Amended Disclosure Statement
LUKE'S LOCKER: Court Approves Disclosure Statement
MADISON-LARAMIE: Wants Plan Filing Deadline Extended to Sept. 5
MCGRAW-HILL GLOBAL: Bank Debt Trades at 4% Off
METRO PALISADES: Bid to Use Cash Collateral Denied
METROPOLITAN NYC: Sept. 21 Hearing on 2nd Amended Plan Outline
MIDAS INTERMEDIATE: Moody's Places B2 CFR on Review for Downgrade
MOHEGAN TRIBAL: Bank Debt Trades at 7% Off
MONTREIGN RESORT: Bank Debt Trades at 10% Off
MORGAN AIR: Case Summary & 20 Largest Unsecured Creditors
MOULTON PROPERTIES: CAP Objects to Combined Plan and Disclosures
MOUNTAIN CRANE SERVICE: Oct. 23 Plan Confirmation Hearing Set
MULTIMEDIA PLATFORMS: Sept. 26 Hearing on Disclosure Statement
MUSCLEPHARM CORP: Lawsuit Seeks Appointment of Receiver
NATIONAL ORTHOPEDICS: Sept. 5 Confirmation Hearing
NEIMAN MARCUS: Bank Debt Trades at 8% Off
NEW GOLD: Moody's Cuts CFR to B3 & Alters Outlook to Negative
PEORIA REGIONAL: Approval Hearing on Plan Outline Set for Sept. 20
RENNOVA HEALTH: Proposed Reverse Stock Split Approved
ROCK CREEK: Case Summary & 9 Unsecured Creditors
ROSEGARDEN HEALTH: Trustee Gets Interim OK to Use Cash Collateral
SAFE HAVEN: Moves to Use Cash Collateral Until July 2019
SAR TECH: U.S. Trustee Unable to Appoint Committee
SAVVAS GIANASMIDIS: Lawyers Not Entitled to Prepetition Interest
SEQUA CORP: S&P Cuts Issuer Credit Rating to CCC+, Outlook Stable
SEVEN STARS: Signs 3-Year $24B Deal with Electric Bus Operator
SHREE SWAMINARAYAN: TD Bank Seeks Appointment of Ch. 11 Trustee
SKILLSOFT CORP: Bank Debt Trades at 10% Off
SPA 810: Committee Objection to PFP Transaction Disclosed in Plan
TADEUSZ KOZLOWSKI: OK'd to Use Cash Collateral Through Sept. 30
TELE CIRCUIT: Creditor Seeks Appointment of Ch. 11 Trustee
TLC RESIDENTIAL: DOJ Watchdog Seeks Appointment of Ch. 11 Trustee
TNT CRANE: Bank Debt Trades at 18% Off
TRIGEE FOUNDATION: Denial of N. Durant Bid to Sanction Atty Upheld
ULTRA PETROLEUM: Bank Debt Trades at 11% Off
ULTRA RESOURCES: Moody's Cuts CFR to B2 & Sr. Unsec. Notes to Caa1
WINDSTREAM CORP: Bank Debt Trades at 13% Off
[*] Discounted Tickets for 2018 Distressed Investing Conference!
[^] BOND PRICING: For the Week from August 20 to 24, 2018
*********
18 AUDUBON PLACE: Case Summary & 8 Unsecured Creditors
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Debtor: 18 Audubon Place, LLC
537 Cajundome Boulevard, Suite 111
Lafayette, LA 70506
Business Description: 18 Audubon Place, LLC is the 100% owner of
a property located at 18 Audubon Place
New Orleans, Louisiana, valued by the
Company at $5.20 million.
Chapter 11 Petition Date: August 24, 2018
Court: United States Bankruptcy Court
Eastern District of Louisiana (New Orleans)
Case No.: 18-12232
Judge: Hon. Elizabeth W. Magner
Debtor's Counsel: William Charles Vidrine, Esq.
VIDRINE & VIDRINE, PLLC
711 W. Pinhook Road
Lafayette, LA 70503
Tel: (337) 233-5195
Fax: (337) 233-3897
Email: williamv@vidrinelaw.com
Total Assets: $5,800,000
Total Liabilities: $7,234,114
The petition was signed by Richard Goldenberg, member/manager.
A full-text copy of the petition containing, among other items, a
list of the Debtor's eight unsecured creditors is available for
free at:
http://bankrupt.com/misc/laeb18-12232.pdf
37 CALUMET STREET: Seeks Nunc Pro Tunc Allowance of Payments
------------------------------------------------------------
37 Calumet Street LLC moves the U.S. Bankruptcy Court for the
District of Massachusetts for authority to utilize certain cash
collateral for payment to certain trade creditors for prepetition
services performed on estate collateral.
Prior to this bankruptcy filing, certain creditors performed
repairs on estate collateral known as 37 Calumet Street, Boston,
MA. The damage was from a flood that occurred in January 2018.
During the prepetition period, the Debtor's manager Patricia
Hounsell made an insurance claim in connection with the flood. The
insurance carrier made a check payable to Patricia Hounsell and
Endeavor Capital in the amount of $12,697. Endeavor Capital was
unwilling to endorse the check to allow payment to the trade
creditors.
Upon filing bankruptcy, the Debtor filed a Motion to Compel
Endeavor Capital to endorse said check. The Motion was allowed and
the Insurance Proceeds were deposited in the DIP account.
Notwithstanding certain direction given by counsel, the Debtor
interpreted the allowance of the Motion to Compel as authority to
pay the trade creditors. As a result, the Debtor made postpetition
payments, utilizing cash collateral. These payments were in
consideration for work performed only on 37 Calumet Street.
Further, the alarm expense referenced at August 8, 2018, hearing
was for repairs due to said flood, not ongoing expense.
The Debtor regrets this error and now understands that it cannot
make payments in cash nor expenditures without first obtaining
court authority.
For the foregoing reasons, the Debtor requests allowance of
payments, on a nunc pro tunc basis.
A full-text copy of the Motion is available at:
http://bankrupt.com/misc/mab18-11412_54_M_Cash_37_Calumet.pdf
About 37 Calumet Street
37 Calumet Street LLC listed its business as a single asset real
estate, as defined in 11 U.S.C. Section 101(51B)).
37 Calumet Street sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. D. Mass. Case No. 18-11412) on April 19,
2018. In the petition signed by Patricia Hounsell, manager, the
Debtor estimated assets of $1 million to $10 million and
liabilities of $1 million to $10 million. Judge Frank J. Bailey
presides over the case. Michael Van Dam, Esq., of Van Dam Law LLP,
serves as the Debtor's counsel.
581 HIGUERA RESTAURANT: Voluntary Chapter 11 Case Summary
---------------------------------------------------------
Debtor: 581 Higuera Restaurant Group, LLC
3480 South Higuera Street, Suite 130
San Luis Obispo, CA 93401
Business Description: 581 Higuera Restaurant Group, LLC
filed as a Domestic in the State of
California on Sept. 5, 2014, according to
public records filed with California
Secretary of State. The Company listed its
business as Single Asset Real Estate (as
defined in 11 U.S.C. Section 101(51B)).
Chapter 11 Petition Date: August 24, 2018
Court: United States Bankruptcy Court
Central District of California (Santa Barbara)
Case No.: 18-11391
Judge: Hon. Deborah J. Saltzman
Debtor's Counsel: Linda S. Blonsley, Esq.
BLONSLEY LAW
209 S Halcyon Road
Arroyo Grande, CA 93420
Tel: 805-904-6722
Fax: 805-904-6724
Email: blonsleylawecf@gmail.com
lblonsley@blonsleylaw.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by John W. Belsher or Ryan Petitit,
managing member of PB Companies, LLC.
The Debtor stated it has no unsecured creditors.
A full-text copy of the petition is available for free at:
http://bankrupt.com/misc/cacb18-11391.pdf
ACE HOLDING: Case Summary & 5 Unsecured Creditors
-------------------------------------------------
Debtor: Ace Holding LLC
960 Sterling Ridge Drive
Rensselaer, NY 12144-8457
Business Description: Ace Holding LLC acquires and manages real
estate.
Chapter 11 Petition Date: August 24, 2018
Court: United States Bankruptcy Court
Northern District of New York (Albany)
Case No.: 18-11501
Judge: Hon. Robert E. Littlefield Jr.
Debtor's Counsel: Christian H. Dribusch, Esq.
THE DRIBUSCH LAW FIRM
1001 Glaz Street
East Greenbush, NY 12061
Tel: 518-729-4331
Fax: 518-463-4386
Email: cdribusch@chdlaw.net
Total Assets: $1,308,000
Total Liabilities: $773,000
The petition was signed by Andrea M. Wilkinson, member.
A full-text copy of the petition containing, among other items, a
list of the Debtor's five unsecured creditors is available for free
at:
http://bankrupt.com/misc/nynb18-11501.pdf
AIR MEDICAL: Bank Debt Trades at 2% Off
---------------------------------------
Participations in a syndicated loan under which Air Medical Group
Holdings Inc. is a borrower traded in the secondary market at 97.65
cents-on-the-dollar during the week ended Friday, August 17, 2018,
according to data compiled by LSTA/Thomson Reuters MTM Pricing.
This represents an increase of 0.65 percentage points from the
previous week. Air Medical pays 325 basis points above LIBOR to
borrow under the $1.918 billion facility. The bank loan matures on
April 28, 2022. Moody's rates the loan 'B1' and Standard & Poor's
gave a 'B' rating to the loan. The loan is one of the biggest
gainers and losers among 247 widely quoted syndicated loans with
five or more bids in secondary trading for the week ended Friday,
August 17.
ALABAMA PETROLEUM: U.S. Trustee Unable to Appoint Committee
-----------------------------------------------------------
The Office of the U.S. Trustee on August 22 disclosed in a court
filing that no official committee of unsecured creditors has been
appointed in the Chapter 11 case of Alabama Petroleum Carrier,
LLC.
About Alabama Petroleum Carrier
Montgomery, Alabama-based Alabama Petroleum Carrier, LLC, filed for
Chapter 11 bankruptcy protection (Bankr. M.D. Ala. Case No.
18-32126) on July 30, 2018. Judge Bess M. Creswell presides over
the case. The Debtor tapped Michael A. Fritz, Sr., Esq., as its
legal counsel.
ALLURE NAIL: Amends Plan to Modify Treatment of Summit Bank's Claim
-------------------------------------------------------------------
Allure Nail Supply, LLC filed with the U.S. Bankruptcy Court for
the Western District of Missouri a proposed amendment to its
chapter 11 plan of reorganization.
The proposed amendment states that the Class One Claim will be paid
as follows:
The Debtor will pay Summit Bank the balance owed on the two loans,
with a fixed interest of 7.75%, payable as follows: The principal
balances will bear interest at 7.75% per annum and the Debtor shall
pay Summit Bank equal monthly payments of interest only from August
2018 until January 2019 at which time the payments will include
principal and interest
The payments of principal and interest are amortized over 84 months
(7 years). The current principal balances are $55,423 and
$157,001.82. Class One is impaired.
A copy of the Plan's Proposed Amendment is available at:
http://bankrupt.com/misc/mowb17-43260-11-48.pdf
About Allure Nail Supply LLC
Based in North Kansas City, Missouri, Allure Nail Supply, LLC, is a
privately-held company in the nail arts products distribution
business. It offers CND, EZ Flow, Entity Beauty, Tammy Taylor
Nails, Cuccio, China Glaze, IBD, Color Club, LeChat, and much more.
It is a small business debtor as defined in 11 U.S.C. Section
101(51D) with gross revenue from sales amounting to $3.29 million
in 2016 and $5.36 million in 2015.
Allure Nail sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. W.D. Mo. Case No. 17-43260) on December 1, 2017.
Cuong D. Nguyen, managing member, signed the petition.
At the time of the filing, the Debtor disclosed $434,240 in assets
and $1.71 million in liabilities.
Judge Brian T. Fenimore presides over the case. Krigel & Krigel,
P.C. is the Debtor's bankruptcy counsel.
ALTICE FRANCE: Bank Debt Trades at 4% Off
-----------------------------------------
Participations in a syndicated loan under which Altice France Est
[Altice Blue One SAS] is a borrower traded in the secondary market
at 95.95 cents-on-the-dollar during the week ended Friday, August
17, 2018, according to data compiled by LSTA/Thomson Reuters MTM
Pricing. This represents a decrease of 0.85 percentage points from
the previous week. Altice France pays 275 basis points above LIBOR
to borrow under the $910 million facility. The bank loan matures on
June 21, 2025. Moody's rates the loan 'B1' and Standard & Poor's
gave a 'B+' rating to the loan. The loan is one of the biggest
gainers and losers among 247 widely quoted syndicated loans with
five or more bids in secondary trading for the week ended Friday,
August 17.
Altice France Est SAS provides cable operator services. The company
was incorporated in 2002 and is based in Lampertheim, France. The
company operates as a subsidiary of Altice S.A.
ANCHOR GLASS: Bank Debt Trades at 12% Off
-----------------------------------------
Participations in a syndicated loan under which Anchor Glass
Container Corporation is a borrower traded in the secondary market
at 87.94 cents-on-the-dollar during the week ended Friday, August
17, 2018, according to data compiled by LSTA/Thomson Reuters MTM
Pricing. This represents a decrease of 1.61 percentage points from
the previous week. Anchor Glass pays 275 basis points above LIBOR
to borrow under the $646 million facility. The bank loan matures on
December 21, 2023. Moody's rates the loan 'B1' and Standard &
Poor's gave a 'B' rating to the loan. The loan is one of the
biggest gainers and losers among 247 widely quoted syndicated loans
with five or more bids in secondary trading for the week ended
Friday, August 17.
B.L.E. INC: Case Summary & 20 Largest Unsecured Creditors
---------------------------------------------------------
Debtor: B.L.E., Inc.
1227 High Ridge Road, Suite 335
Stamford, CT 06905
Business Description: B.L.E., Inc. is in the business of
commercial and industrial machinery and
equipment (except automotive and electronic)
repair and maintenance.
Chapter 11 Petition Date: August 23, 2018
Court: United States Bankruptcy Court
District of Connecticut (Bridgeport)
Case No.: 18-51102
Judge: Hon. Julie A. Manning
Debtor's Counsel: Douglas J. Lewis, Esq.
EVANS & LEWIS, LLC
93 Greenwood Avenue
Bethel, CT 06801
Tel: (203) 743-7644
Fax: 203-797-9921
Email: lewisdouglas74@yahoo.com
Total Assets: $500
Total Liabilities: $1,036,596
The petition was signed by Adam H. Betts, president.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 20 largest unsecured creditors is available
for free at:
http://bankrupt.com/misc/ctb18-51102.pdf
BARTLETT TRAYNOR: Case Summary & 17 Unsecured Creditors
-------------------------------------------------------
Debtor: Bartlett Traynor & London, LLC
dba Harrisburg Midtown Arts Center
1110 North Third Street
Harrisburg, PA 17102
Business Description: Harrisburg Midtown Arts Center is a
music and arts center at 1110 N. Third St.
Harrisburg, Pennsylvania.
Chapter 11 Petition Date: August 23, 2018
Court: United States Bankruptcy Court
Middle District of Pennsylvania (Harrisburg)
Case No.: 18-03520
Judge: Hon. Henry W. Van Eck
Debtor's Counsel: Robert E. Chernicoff, Esq.
CUNNINGHAM, CHERNICOFF & WARSHAWSKY, P.C.
2320 North Second Street
Harrisburg, PA 17110
Tel: 717 238-6570
Fax: 717 238-4809
Email: rec@cclawpc.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by John Traynor, member.
A copy of the Debtor's list of 17 unsecured creditors is available
for free at:
http://bankrupt.com/misc/pamb18-03520_creditors.pdf
A full-text copy of the petition is available for free at:
http://bankrupt.com/misc/pamb18-03520.pdf
BAUSCH HEALTH: Moody's Affirms B3 CFR & Alters Outlook to Pos.
--------------------------------------------------------------
Moody's Investors Service affirmed certain ratings of Bausch Health
Companies Inc. and its subsidiaries, and revised the rating outlook
to positive from stable. In addition, Moody's upgraded Bausch's
Speculative Grade Liquidity Rating to SGL-1 from SGL-2.
Ratings affirmed:
Bausch Health Companies Inc.:
Corporate Family Rating at B3
Probability of Default Rating at B3-PD
Senior secured bank credit facilities at Ba3 (LGD 2)
Senior secured notes at Ba3 (LGD 2)
Unsecured notes at Caa1 (LGD 5 from LGD 4)
Valeant Pharmaceuticals International:
Unsecured notes at Caa1 (LGD 5 from LGD 4)
VRX Escrow Corp. (obligations assumed by Bausch Health Companies
Inc.):
Unsecured notes at Caa1 (LGD 5 from LGD 4)
Rating upgraded:
Bausch Health Companies Inc.
Speculative Grade Liquidity Rating to SGL-1 from SGL-2
Outlook actions:
Bausch Health Companies Inc. and Valeant Pharmaceuticals
International: revised to positive from stable
There is no outlook on VRX Escrow Corp.
"The outlook change reflects its expectation that Bausch Health
will have stable operating performance in its major business
segments and that it will continue to reduce debt. This creates the
potential for Bausch Health's debt/EBITDA to decline below 7.0x
over the next two years," stated Michael Levesque, Moody's Senior
Vice President.
RATINGS RATIONALE
Bausch Health Companies Inc.' B3 Corporate Family Rating reflects
its very high financial leverage with gross debt/EBITDA of about
7.5 times. The credit profile also reflects challenges in
sustainably improving its organic growth rate, as well as resolving
legal matters. Patent expirations over the next 12 months will
erode earnings, causing debt/EBITDA to remain around 7.5x even with
steady debt reduction. However, patent expirations will moderate by
late 2019, resulting in greater stability on an aggregate basis.
Improving operating performance will also be supported by growth in
new products and pipeline launches. The credit profile is supported
by Bausch Health's good scale with over $8 billion of revenue, good
diversity and high margins.
Bausch Health's liquidity is very good, reflecting solid free cash
flow and minimal short term borrowings. The upgrade of the
Speculative Grade Liquidity Rating to SGL-1 from SGL-2 reflects
Moody's expectations for high levels of cash on hand and good free
cash flow, combined with greater headroom under financial covenants
resulting from recent refinancing. The only financial covenant in
Bausch Health's revolving credit facility is secured debt/EBITDA
below 4.0x, and Moody's anticipates that the company will have
strong cushion under this covenant.
The rating outlook is positive, reflecting the potential for a
stronger credit profile as Bausch Health continues solid growth in
eyecare and gastroenterology, successfully commercializes new
products, and reduces debt levels.
Factors that could lead to an upgrade include good organic growth
in Bausch + Lomb/International and Salix business lines, successful
launches of new products, and progress at resolving legal matters.
In addition, sustaining debt/EBITDA below 7.0 times with CFO/debt
approaching 10% would support an upgrade.
Factors that could lead to a downgrade include significant
reductions in pricing or utilization trends of key products,
unfavorable developments in the Xifaxan patent challenge,
escalation of legal issues or large litigation-related cash
outflows. In addition, sustaining debt/EBITDA above 8.0 times could
also lead to a downgrade.
The principal methodology used in these ratings was Pharmaceutical
Industry published in June 2017.
Headquartered in Laval, Quebec, Bausch Health Companies Inc. is a
global company that develops, manufactures and markets a range of
pharmaceutical, medical device and over-the-counter products,
primarily in the therapeutic areas of eye health, gastroenterology
and dermatology.
BAYTEX ENERGY: Moody's Hikes CFR to B1 & Sr. Unsec. Rating to B2
----------------------------------------------------------------
Moody's Investors Service upgraded Baytex Energy Corp.'s Corporate
Family Rating to B1 from B3, Probability of Default Rating to B1-PD
from B3-PD, senior unsecured rating to B2 from Caa1, and
Speculative Grade Liquidity Rating to SGL-2 from SGL-3. The outlook
was changed to stable from rating under review. This concludes the
rating under review for upgrade initiated on June 18, 2018.
"Baytex's rating upgrade reflects improved credit metrics following
its all-equity purchase of Raging River", said Paresh Chari
VP-Senior Analyst.
Upgrades:
Issuer: Baytex Energy Corp.
Probability of Default Rating, Upgraded to B1-PD from B3-PD
Speculative Grade Liquidity Rating, Upgraded to SGL-2 from SGL-3
Corporate Family Rating, Upgraded to B1 from B3
Senior Unsecured Regular Bond/Debenture, Upgraded to B2 (LGD5) from
Caa1 (LGD4)
Outlook Actions:
Issuer: Baytex Energy Corp.
Outlook, Changed To Stable From Rating Under Review
RATINGS RATIONALE
Baytex Energy's B1 CFR is supported by 1) solid retained cash
flow/debt of about 45% expected in 2019; 2) sizeable and diverse
production and reserves base with Moody's expected production of
about 85,000 barrels of oil equivalent/day (boe/d, net of
royalties); 3) solid leveraged full-cycle ratio (LFCR) of around
1.5x that is supported by strong light oil margins; 4) geographic
diversity with about one-third of production coming from the Eagle
Ford in the US, one-quarter from the Viking in Saskatchewan and the
balance from heavy oil in Alberta and Saskatchewan; and 5) positive
free cash flow generation that Moody's expects will be used to
reduce debt. Baytex is adversely affected by 1) high F&D costs of
about C$20/boe that reduce the portfolio's resiliency to commodity
downturns; 2) exposure to weak Canadian heavy oil (WCS) prices; 3)
weak debt to proved developed reserves in 2019 (US$11/boe); and 4)
minimal hedges in 2019.
Baytex's liquidity is good (SGL-2). At June 30, 2018, Baytex had
negligible cash and roughly C$500 million available under its
approximately C$740 million (US$575 million authorization) secured
revolving credit facility due June 2020, which is not subject to
borrowing base redeterminations. Moody's expects about C$100
million of positive free cash flow in the 15 months through Q3
2019. The company's next significant debt maturities are the C$300
million term loan due June 2020, US$150 million senior notes due
February 2021 and US$400 million senior notes due June 2021.
Moody's expects Baytex to be in compliance with the two financial
covenants applicable to the secured revolving credit facility and
term loan through this period. Alternate liquidity is limited by
the fact that all of the assets are pledged to the secured
revolving credit facility and the Raging River assets are pledged
to the term loan lenders.
In accordance with Moody's Loss Given Default (LGD) Methodology,
the senior unsecured notes are rated B2, one notch below the B1
CFR, due to the US$575 million revolving credit facility that is
first priority secured by Baytex assets and second priority secured
by the Raging River assets, and C$300 million term loan that is
first priority secured by Raging River assets and guaranteed on an
unsecured basis by Baytex.
The stable outlook reflects Moody's view that Baytex's credit
metrics will remain strong and that production will remain above
85,000 boe/d.
The ratings could be upgraded if Baytex successfully integrates
Raging River and executes on its strategy, keeps production at or
above the pro forma level of 85,000 boe/d, retained cash flow to
debt is above 40% (pro forma 45%), debt to proved developed
reserves trends towards US$10/boe (pro forma US$11/boe), LFCR is
above 1.5x (pro forma 1.5x) and Baytex maintains at least break
even free cash flow.
The ratings could be downgraded if production (pro forma 85,000
boe/d) or reserves decrease (pro forma 275 MMBoe), retained cash
flow to debt is below 20% (pro forma 45%), LFCR falls towards 1x
(pro forma 1.5x) or debt to proved developed reserves is above
US$13/boe (pro forma US$11/boe).
The principal methodology used in these ratings was Independent
Exploration and Production Industry published in May 2017.
Baytex is a Calgary, Alberta-based independent exploration and
production company with pro forma production of about 85,000 boe/d
(all production and reserves are net of royalties) following its
August 22, 2018 all-equity acquisition of Raging River Exploration
Inc. The company operates light oil Viking assets in southern
Saskatchewan, heavy oil in western Canada, light oil Duvernay in
central Alberta, and has a roughly 25% non-operated interest within
the liquids-rich Eagle Ford in Texas.
BAYTEX ENERGY: S&P Hikes ICR & Unsec. Debt Rating to 'BB'
---------------------------------------------------------
S&P Global Ratings said it raised its long-term issuer credit and
senior unsecured debt ratings on Calgary, Alta.-based Baytex Energy
Corp. to 'BB' from 'BB-'. The recovery rating on the senior
unsecured debt is unchanged at '3', reflecting S&P's capped
estimated recovery of 65% under its simulated default scenario. S&P
Global Ratings removed its ratings from CreditWatch, where they
were placed with positive implications June 19, 2018, following
Baytex's announcement of its intention to merge with Raging River
Exploration Ltd. The outlook is stable.
Although S&P's assessment of Baytex's overall business risk profile
is unchanged, the upgrade reflects its opinion that the company's
prospective financial risk profile will strengthen following its
merger with Raging River. The projected material increase in
operating cash flow generation, relative to some expected debt
reduction throughout our forecast period, should ensure Baytex's
cash flow and leverage metrics remain at or above the improved
levels we are now estimating.
Baytex is a Calgary, Alta.-based upstream oil and gas company with
producing assets in the Western Canada Sedimentary Basin and the
U.S. With the merger, the company now operates in five core areas:
Peace River, Lloydminster, Viking, and Duvernay in Canada; and the
Eagle Ford in the U.S. The company's product mix will shift from
52% and 48% coming from the U.S. and Canada, respectively, to its
Canadian assets contributing about 65% of its production. Pro forma
the combination with Raging River, Baytex's production will
increase by about 25,000 barrels of oil equivalent (boe) per day,
based on Raging River's current production. Baytex's 2018 exit rate
production should be about 95,000 boe per day, with its liquids and
natural gas product mix at about 83% and 17%, respectively.
Overall, S&P expects the company's production to increase to more
than 100,000 boe per day in 2019.
The stable outlook reflects S&P Global Ratings' expectation that
Baytex's expanded upstream operations, increased projected FFO
generation, and relatively stable debt will strengthen the
company's cash flow and leverage metrics to sufficiently support
the 'BB' rating. With our estimated three-year (2018-2020),
weighted-average FFO-to-debt ratio projected to be above 35%, S&P
believes the company's financial risk profile is now at a level
appropriate for the 'BB' rating.
S&P said, "Assuming Baytex's business risk profile does not weaken
during our 12-month outlook period, we would lower the rating if
the company's cash flow and leverage metrics materially
deteriorated from our estimates. Although we expect Baytex will
continue adhering to its financial policies, which focus on
maintaining spending within internal cash flow generation and using
positive free cash flow to reduce debt, we would lower the rating
if the company's three-year (2018-2020), weighted-average
FFO-to-debt ratio fell below 20%, and we expected the ratio to
remain below this level.
"Although we expect Baytex's cash flow and leverage metrics will
strengthen beyond 2018, a subsequent upgrade would most likely
occur if the company materially strengthens its business risk
profile. Specifically, Baytex would need to expand the scope and
scale of its upstream operations and achieve profitability and
return metrics consistent with E&P companies rated at 'BB+' to
support an upgrade."
BELK INC: Bank Debt Trades at 17% Off
-------------------------------------
Participations in a syndicated loan under which BELK Incorporated
is a borrower traded in the secondary market at 82.60
cents-on-the-dollar during the week ended Friday, August 17, 2018,
according to data compiled by LSTA/Thomson Reuters MTM Pricing.
This represents an increase of 4.69 percentage points from the
previous week. BELK Incorporated pays 475 basis points above LIBOR
to borrow under the $1.5 billion facility. The bank loan matures
on December 10, 2022. Moody's rates the loan 'B2' and Standard &
Poor's gave a 'B-' rating to the loan. The loan is one of the
biggest gainers and losers among 247 widely quoted syndicated loans
with five or more bids in secondary trading for the week ended
Friday, August 17.
BIOSTAR PHARMACEUTICALS: Gets New Delisting Notice from Nasdaq
--------------------------------------------------------------
Biostar Pharmaceuticals, Inc. received on Aug. 16, 2018, a
notification letter from Nasdaq Listing Qualifications advising the
Company that, since it had not filed its Quarterly Report on Form
10-Q for the second quarter ended June 30, 2018, this matter serves
as an additional basis for delisting the Company's securities from
The Nasdaq Stock Market.
Previously, on April 19, 2018 and May 23, 2018, the Company
received notification letters from Nasdaq advising the Company
that, since it had not filed its Annual Report on Form 10-K for the
fiscal year ended Dec. 31, 2017 and its Quarterly Report on Form
10-Q for the fiscal quarter ended March 31, 2018, the Company was
not in compliance with Nasdaq Listing Rules.
On July 19, 2018, the Company received a delisting determination
letter from the Nasdaq advising the Company that following review
of the Company's plan of compliance, the Nasdaq staff determined to
delist the Company's common stock from the Nasdaq Capital Market.
On July 26, 2018, the Company requested a hearing before the Nasdaq
Hearings Panel to appeal the delisting determination from the
Nasdaq staff. On Aug. 10, 2018, the Company was granted an
extended stay as to the suspension of the Company's common stock
from trading by the Panel until the Company's scheduled hearing
before the Panel on Sept. 13, 2018 and issuance of a final Panel
decision.
As a result of the latest Form 10-Q filing delinquency, the Panel
will consider this matter in rendering a determination regarding
the Company's continued listing on The Nasdaq Capital Market.
Pursuant to Listing Rule 5810(d), the Company plans to present its
views with respect to this additional deficiency at the hearing.
The Company said it is working assiduously to complete its
delinquent filings with SEC and to regain compliance with the Rule
as soon as possible.
About Biostar Pharmaceuticals
Based in Xianyang, China, Biostar Pharmaceuticals, Inc., through
its wholly owned subsidiary and controlled affiliate in China --
http://www.biostarpharmaceuticals.com/-- develops, manufactures,
and markets pharmaceutical and health supplement products for a
variety of diseases and conditions.
Biostar incurred a net loss of $5.69 million in 2016 and a net loss
of $25.11 million in 2015. As of Sept. 30, 2017, the Company had
$41.42 million in total assets, $5.27 million in total current
liabilities, and $36.14 million in total stockholders' equity.
Mazars CPA Limited, Certified Public Accountants, in Hong Kong,
issued a "going concern" qualification in its report on the
consolidated financial statements for the year ended Dec. 31, 2016,
stating that the Company had experienced a substantial decrease in
sales volume which resulted a net loss for the year ended Dec. 31,
2016. Also, part of the Company's buildings and land use rights
are subject to litigation between an independent third party and
the Company's chief executive officer, and the title of these
buildings and land use rights has been seized by the PRC Courts so
that the Company cannot be sold without the Court's permission. In
addition, the Company already violated its financial covenants
included in its short-term bank loans. These conditions raise
substantial doubt about the Company's ability to continue as a
going concern.
BLACK RIDGE: Modifies Peerless & ElectraWorks Settlement Agreement
------------------------------------------------------------------
Black Ridge Oil & Gas, Inc. has entered into an agreement to modify
the terms of the Settlement Agreement and Release entered into as
of Sept. 27, 2012 between the Company, Peerless Media, Ltd. and
ElectraWorks, Ltd. The agreement provides that upon receipt by the
Company of US$2,250,000 on or before Aug. 31, 2018, the Company
agrees to terminate its rights to any additional payments under the
Settlement Agreement. The Company will retain net proceeds of
$2,137,500 after making a payment of $112,500 related to
outstanding obligations that were contingent on receipt of the
settlement proceeds.
About Black Ridge
Black Ridge Oil & Gas -- http://www.blackridgeoil.com/-- is a
company focused on acquiring, investing in, and managing the oil
and gas assets for its partners. The Company continues to pursue
asset acquisitions in all major onshore unconventional shale
formations that may be acquired with capital from its existing
joint venture partners or other capital providers. Black Ridge is
based in Minneapolis, Minnesota.
M&K CPAS, PLLC, the Company's auditor since 2010, issued a "going
concern" qualification in its report on the consolidated financial
statements for the year ended Dec. 31, 2017, stating that the
Company suffered a net loss from operations and negative cash flows
from operations, which raise substantial doubt about its ability to
continue as a going concern.
Black Ridge reported a net loss attributable to the Company of
$392,529 in 2017 following net income attributable to the Company
of $29.94 million in 2016. As of June 30, 2018, Black Ridge had
$140.47 million in total assets, $278,743 in total liabilities,
$139.69 million in redeemable non-controlling interest and $502,667
in total stockholders' equity.
BLACKRIDGE TECHNOLOGY: Seven Directors Elected by Stockholders
--------------------------------------------------------------
Blackridge Technology International, Inc. held its 2018 Annual
Meeting of Stockholders on Aug. 16, 2018, which was adjourned
until, and closed on Aug. 23, 2018 in order to conduct a final
tabulation of votes, during which the stockholders of the Company:
(a) elected Robert Graham, John Hayes, Robert Lentz, Thomas
Bruderman, Allen J. Kosowsky, Brent Bunger and Robert Zahm
as directors;
(b) ratified the appointment of Haynie & Company by the
Company's Audit Committee of the Board of Directors as the
Company's independent registered public accounting firm for
the year ending Dec. 31, 2018; and
(c) approved the adoption of an amendment to the Company's
Articles of Incorporation, as amended, to increase the
Company's authorized common stock, par value $0.001 per
share, from 200,000,000 shares to 500,000,000 shares and
the Company's authorized preferred stock, par value $0.001
per share, from 10,000,000 shares to 50,000,000 shares.
About BlackRidge Technology
Headquartered in Reno, Nevada, BlackRidge Technology, formerly
known as Grote Molen, Inc. -- http://www.blackridge.us/-- develops
and markets next generation cyber defense solutions that enables
its customers to deliver more secure and resilient business
services in today's rapidly evolving technology and cyber threat
environments. The Company's network, server, and cloud security
products are based on its patented Transport Access Control
technology and are designed to isolate, cloak and protect servers
and cloud services from cyber-attacks and block unauthenticated
access. BlackRidge products are used in enterprise and government
computing environments, the industrial Internet of Things (IoT),
commercial blockchains, and other cloud service provider and
network systems, military grade and patented network security
technology.
Blackridge Technology incurred a net loss of $15.34 million in 2017
compared to a net loss of $7.21 million in 2016. As of
June 30, 2018, the Company had $8.79 million in total assets, $7.44
million in total liabilities and $1.34 million in total
stockholders' equity.
Haynie & Company, in Salt Lake City, Utah, issued a "going concern"
qualification in its report on the consolidated financial
statements for the year ended Dec. 31, 2017, citing that the
Company has incurred losses since inception, has negative cash
flows from operations, and has negative working capital. These
factors raise substantial doubt about the Company's ability to
continue as a going concern.
BROWARD COLLISION: TCA Seeks to Bar Cash Use, Wants Trustee
-----------------------------------------------------------
In the U.S. Bankruptcy Court of the Southern District of Florida,
TCA Global Credit Master Fund, L.P., filed a motion asking the
Court to (i) prohibit Broward Collision, Inc.'s unauthorized use of
cash collateral and (ii) appoint a Chapter 11 trustee.
TCA claims to be a secured creditor and holder of a security
interest in all personal property of Broward. The Debtor has also
scheduled TCA as a creditor holding a secured claim in the amount
of $1.6 million.
Despite being in bankruptcy for almost two months, the Debtor has
yet to file a cash collateral motion or request approval from TCA
to use cash collateral. TCA believes that Broward is collecting
and using revenues from its continued operations, without filing
and obtaining the corresponding approval thereof for use of cash
collateral, as required by the Bankruptcy Code.
The appointment of a trustee is warranted, asserts TCA's counsel,
Bradley Shraiberg, Esq., at Shraiberg, Landau & Page, P.A.
"The Debtor has engaged in unauthorized cash collateral use for two
months, to the detriment of TCA. The Debtor has proven to be
untrustworthy and its current management lacks the confidence of
creditors."
TCA's counsel can be reached at:
SHRAIBERG, LANDAU & PAGE, P.A.
Bradley Shraiberg
2385 NW Executive Center Drive, #300
Boca Raton, Florida 33431
Telephone: 561-443-0800
Facsimile: 561-998-0047
E-mail: bss@slp.law
E-mail: pdorsey@slp.law
A full-text copy of the Motion is available at:
http://bankrupt.com/misc/18-17492_35_M_Cash_Coll.pdf
About Broward Collision
Broward Collision, Inc., is one of the largest established
independent facilities located in Sunrise serving West Broward.
Broward Collision, Inc., is a strong, solid name in the industry
offering one of the largest licensed and certified collision repair
facilities in West Sunrise.
Broward Collision filed pro se a voluntary petition under chapter
11 of the U.S. Bankruptcy Code (Bankr. S.D. Fla. Case No. 18-17492)
on June 22, 2018, estimating under $1 million in assets and
liabilities. The Debtor has hired Rachamin "Rocky" Cohen, Esq., at
Cohen Legal Services, PA, is the Debtor's counsel.
BROWARD COLLISION: U.S. Trustee Unable to Appoint Committee
-----------------------------------------------------------
No official committee of unsecured creditors has been appointed in
the Chapter 11 case of Broward Collision, Inc. as of August 22,
according to a court docket.
About Broward Collision
Broward Collision, Inc., is one of the largest established
independent facilities located in Sunrise serving West Broward.
Broward Collision, Inc., is a strong, solid name in the industry
offering one of the largest licensed and certified collision repair
facilities in West Sunrise.
Broward Collision filed pro se a voluntary petition under chapter
11 of the U.S. Bankruptcy Code (Bankr. S.D. Fla. Case No. 18-17492)
on June 22, 2018, estimating under $1 million in assets and
liabilities. The Debtor has hired Rachamin "Rocky" Cohen, Esq., at
Cohen Legal Services, PA, is the Debtor's counsel.
CALIFORNIA RESOURCES: Amends Credit Facility with JPMorgan
----------------------------------------------------------
California Resources Corporation has entered into an amendment to
its credit agreement with JPMorgan Chase Bank, N.A., as
Administrative Agent, Swingline Lender and a Letter of Credit
Issuer, Bank of America, N.A., as Syndication Agent, Swingline
Lender and a Letter of Credit Issuer, and the lenders named
therein, dated as of Sept. 24, 2014.
The purpose of the amendment is to increase the Company's ability
to repurchase and refinance its outstanding indebtedness. Upon
effectiveness of the amendment, the Company's 2014 Credit Agreement
would be amended to, among other things:
* permit the Company to draw on its revolver to repurchase its
second lien notes and senior notes at a discount to par in an
amount up to $300 million;
* permit the Company to draw on its revolver to repurchase its
second lien notes and senior notes at a discount to par,
without regard to time limit, in an amount not to exceed a
specified portion of proceeds from future dispositions of
certain assets;
* in connection with any repurchase of certain of the Company's
indebtedness, increase the minimum liquidity required to make
such repurchase (calculated on a pro forma basis after giving
effect to the repurchase) from $250 million to $300 million;
and
* enhance the Company's ability to refinance its outstanding
term loans, second lien notes and senior notes, in each case
by allowing the use of permitted refinancing indebtedness for
such refinancing so long as certain conditions set forth in
the proposed amended 2014 Credit Agreement are met.
A full-text copy of the Eighth Amendment to Credit Agreement is
available for free at https://is.gd/HnFw8R
About California Resources
California Resources Corporation -- http://www.crc.com/-- is an
oil and natural gas exploration and production company in
California. The Company operates its resource base exclusively
within the State of California, applying complementary and
integrated infrastructure to gather, process and market its
production. Using advanced technology, California Resources
Corporation focuses on safely and responsibly supplying affordable
energy for California by Californians.
California Resources reported a net loss attributable to common
stock of $266 million for the year ended Dec. 31, 2017, compared to
net income attributable to common stock of $279 million for the
year ended Dec. 31, 2016. As of June 30, 2018, California
Resources had $6.94 billion in total assets, $893 million in total
current liabilities $5.07 billion in long-term debt, $265 million
in deferred gain and issuance costs, $617 million in other
long-term liabilities, $735 million in mezzanine equity and a total
deficit of $645 million.
As of June 30, 2018, California Resources had $6.94 billion in
total assets, $893 million in total current liabilities, $5.07
billion in long-term debt, $265 million in deferred gain and
issuance cost, $617 million in other long-term liabilities, $735
million in mezzanine equity and a $645 million total deficit.
* * *
In November 2017, S&P Global Ratings affirmed its 'CCC+' corporate
credit rating on Los Angeles-based exploration and production
company California Resources Corp (CRC). The outlook is negative.
"The affirmation of the 'CCC+' corporate credit rating on CRC
reflects our assessment of the company's improving, but still weak
financial measures combined with increased capital spending that
should stem production declines following a tumultuous 2016."
In November 2017, Moody's Investors Service upgraded California
Resources' Corporate Family Rating (CFR) to 'Caa1' from 'Caa2' and
Probability of Default Rating (PDR) to 'Caa1-PD' from 'Caa2-PD'.
Moody's said the upgrade of CRC's CFR to 'Caa1' and stable outlook
reflects CRC's improved liquidity and the likelihood that it will
have sufficient liquidity to support its operations for at least
the next two years at current commodity prices.
CALIFORNIA RESOURCES: Increases Size of Board to 10 Members
-----------------------------------------------------------
The Board of Directors of California Resources Corporation has
voted to increase the size of the Board to 10 members and elected
Laurie Siegel to fill the resulting vacancy. The Board determined
that Ms. Siegel qualifies as an independent director under the
director independence standards set forth in the rules and
regulations of the Securities and Exchange Commission and the
applicable listing standards of the New York Stock Exchange.
Ms. Siegel is the president of LAS Advisory Services, a firm
providing advice to organizations on issues related to talent
management, succession planning, organizational capability and
culture. From 2003 to 2012, Ms. Siegel served as senior vice
president of Human Resources and Internal Communications of Tyco
International Ltd., a diversified manufacturing and service
company. From 1994 to 2002, she held various positions with
Honeywell International Inc., including vice president of Human
Resources - Specialty Materials. She was previously a director of
global compensation at Avon Products and a principal of Strategic
Compensation Associates.
Ms. Siegel is currently program chair of the G100 Talent
Consortium. Ms. Siegel is a director and compensation committee
chair of the board of directors of each of CenturyLink, Inc., a
broadband, telecommunications and data hosting company, FactSet
Research Systems Inc, a multinational financial data and software
company, and Volt Information Services, a provider of global
infrastructure solutions in technology, information services and
staffing acquisition.
Ms. Siegel has an MBA and a Master's degree in City and Regional
Planning, both from Harvard University, and a Bachelor's degree
from the University of Michigan.
There are no arrangements or understandings between Ms. Siegel and
any other persons under which she was selected as a director.
In connection with her appointment, the Company and Ms. Siegel will
enter into an indemnification agreement which requires the Company
to indemnify her to the fullest extent permitted under Delaware law
against liability that may arise by reason of her service as a
director, and to advance expenses incurred as a result of any
proceeding against her as to which she could be indemnified.
Ms. Siegel will receive the same director compensation as is paid
to the other non-employee directors under the Company's
compensation program for non-employee directors.
About California Resources
California Resources Corporation -- http://www.crc.com/-- is an
oil and natural gas exploration and production company in
California. The Company operates its resource base exclusively
within the State of California, applying complementary and
integrated infrastructure to gather, process and market its
production. Using advanced technology, California Resources
Corporation focuses on safely and responsibly supplying affordable
energy for California by Californians.
California Resources reported a net loss attributable to common
stock of $266 million for the year ended Dec. 31, 2017, compared to
net income attributable to common stock of $279 million for the
year ended Dec. 31, 2016. As of June 30, 2018, California
Resources had $6.94 billion in total assets, $893 million in total
current liabilities $5.07 billion in long-term debt, $265 million
in deferred gain and issuance costs, $617 million in other
long-term liabilities, $735 million in mezzanine equity and a total
deficit of $645 million.
* * *
In November 2017, S&P Global Ratings affirmed its 'CCC+' corporate
credit rating on Los Angeles-based exploration and production
company California Resources Corp (CRC). The outlook is negative.
"The affirmation of the 'CCC+' corporate credit rating on CRC
reflects our assessment of the company's improving, but still weak
financial measures combined with increased capital spending that
should stem production declines following a tumultuous 2016."
In November 2017, Moody's Investors Service upgraded California
Resources' Corporate Family Rating (CFR) to 'Caa1' from 'Caa2' and
Probability of Default Rating (PDR) to 'Caa1-PD' from 'Caa2-PD'.
Moody's said the upgrade of CRC's CFR to 'Caa1' and stable outlook
reflects CRC's improved liquidity and the likelihood that it will
have sufficient liquidity to support its operations for at least
the next two years at current commodity prices.
CALIFORNIA RESOURCES: Incurs $82 Million Net Loss in 2nd Quarter
----------------------------------------------------------------
California Resources Corporation has filed with the Securities and
Exchange Commission its Quarterly Report on Form 10-Q reporting a
net loss attributable to common stock of $82 million on $549
million of total revenues and other for the three months ended June
30, 2018, compared to a net loss attributable to common stock of
$48 million on $516 million of $516 million of total revenues and
other for the same period during the prior year.
For the six months ended June 30, 2018, the Company reported a net
loss attributable to common stock of $84 million on $1.15 billion
of total revenues and other compared to net income attributable to
common stock of $5 million on $1.10 billion of total revenues and
other for the same period last year.
As of June 30, 2018, California Resources had $6.94 billion in
total assets, $893 million in total current liabilities, $5.07
billion in long-term debt, $265 million in deferred gain and
issuance cost, $617 million in other long-term liabilities, $735
million in mezzanine equity and a $645 million total deficit.
Todd A. Stevens, CRC's president and chief executive officer, said,
"CRC is building sustained momentum as our experienced and pressure
tested teams continue to drive strong operational execution and as
we take advantage of the breadth and diversity of our California
portfolio. Our teams are driving improved efficiencies in the
field and we expect to deliver value-oriented production growth
through the second half of 2018. This is showcased by our ability
to capture near-term synergies from the consolidation of CRC's
flagship Elk Hills interests quicker than expected, in addition to
solid production results we are witnessing from our drilling
activity. Looking ahead, we are keenly monitoring crude oil
fundamentals and commodity markets to flex our capital plans and
enhance our 2019 cash flow performance. We expect our mid-cycle
capital investment plan should maximize value creation through
value-oriented production increases along with stronger EBITDAX
growth into 2019, particularly with the modified hedging
strategy."
Total daily production volumes averaged 134,000 barrels of oil
equivalent (BOE) per day for the second quarter of 2018, compared
to 129,000 BOE per day for the same period in 2017, an increase of
nearly 4 percent driven by the Elk Hills acquisition. This net
increase included a 1,600 BOE per day negative effect on production
volumes from the Company's PSCs. For the second quarter of 2018,
oil volumes averaged 83,000 barrels per day, NGL volumes averaged
16,000 barrels per day and gas volumes averaged 210,000 thousand
cubic feet (MCF) per day.
Realized crude oil prices, including the effect of settled hedges,
increased by $16.13 per barrel in the second quarter of 2018 to
$64.11 per barrel from the prior year comparable period. Settled
hedges decreased realized crude oil prices by $9.08 per barrel.
Average realized NGL prices continued to be strong and registered
$42.13 per barrel, reflecting a realized price that was 56% of
Brent prices. Realized natural gas prices were $2.25 per MCF.
Production costs for the second quarter of 2018 were $231 million,
compared to $216 million in the second quarter of 2017, an increase
of $15 million primarily due to higher production from the Elk
Hills acquisition of $12 million, and increased equity compensation
expense of $5 million resulting from the stock price increase. On
a per unit basis, second quarter production costs were $18.93 per
BOE, compared to $18.34 per BOE in the prior year comparable
period. Second quarter unit production costs were within the
previously disclosed guidance levels, and would have been $18.52
excluding higher equity compensation expense or $0.56 per BOE lower
on a sequential basis from first quarter 2018 unit production costs
of $19.08. In line with industry practice for companies operating
under PSCs, CRC reports gross field operating costs and only the
Company's share of production volumes, which can result in higher
production costs per barrel. Excluding this PSC effect, per unit
production costs1 for the second quarter of 2018 would have been
$17.41. General and administrative (G&A) expenses were $90 million
for the second quarter of 2018, compared to $63 million in the
first quarter of 2018 and $31 million higher than the prior year
comparable period primarily related to higher equity compensation
expense as a result of CRC's increased stock price. CRC's
increased stock price added $19 million to the current year expense
compared to the prior year period. The Elk Hills acquisition added
another $3 million to second quarter 2018 G&A expense. The rest of
the increase was mostly related to the timing of certain expenses.
CRC reported taxes other than on income of $37 million, $6 million
higher than the prior year period largely due to higher property
taxes as a result of commodity price increases. Exploration
expense of $6 million for the second quarter of 2018 remained flat
to the prior year comparable period.
Capital investment in the second quarter of 2018 totaled $170
million, excluding JV capital. Approximately $115 million was
directed to drilling and capital workovers.
Cash provided by operating activities was $34 million, which
included interest payments of $154 million. CRC's working capital
use is larger in the second and fourth quarters of the year due to
the timing of interest and property tax payments. CRC's free cash
flow1 was $(136) million in the second quarter of 2018 after taking
into account capital that was funded by BSP.
Six-Month Results
Total daily production volumes averaged 129,000 BOE per day in the
first six months of 2018, compared with 131,000 BOE per day for the
same period in 2017, a decrease of 2 percent. This decrease
included a negative effect on production volumes from our PSCs of
2,000 BOE per day. Excluding production from the Elk Hills
acquisition and the effect of PSC contracts, the decline from the
first half of 2017 to the first half of 2018 was 4%, which is below
CRC's previously reported base production decline range.
In the first six months of 2018, realized crude oil prices,
including the effect of settled hedges, increased $14.35 per barrel
to $63.47 per barrel from $49.12 per barrel for the same period in
2017. Settled hedges reduced 2018 realized crude oil prices by
$6.88 per barrel, compared with an increase of $0.42 per barrel for
the same period in 2017. Realized NGL prices increased 32 percent
to $42.63 from $32.20 per barrel in the first six months of 2017.
Realized natural gas prices decreased 6 percent to $2.51 per Mcf,
compared with $2.68 per Mcf for the same period in 2017.
Production costs for the first six months of 2018 were $443
million, or $19.01 per BOE, compared to $427 million, or $18.02 per
BOE, for the same period in 2017. The Elk Hills transaction added
$12 million to the first six months' production costs, and the
increase in equity compensation expense added $6 million, or $0.25
per BOE. Excluding these items, production costs were slightly
lower in the current year period compared to the prior year due to
efficiencies delivered. Per unit production costs, excluding the
effect of PSC contracts, were $17.44 and $16.92 per BOE for the
first six months of 2018 and 2017, respectively. G&A expenses for
the first six months of 2018 were $153 million and for the first
six months of 2017 were $122 million, with the difference almost
entirely related to the increased equity compensation expense
resulting from the stock price increase.
Taxes other than on income of $75 million for the first six months
of 2018 were $11 million higher than the same period of 2017
primarily due to higher property taxes as a result of commodity
price increases. Exploration expense of $14 million for the first
six months of 2018 was $2 million higher than the same period of
2017.
Capital investment in the first six months of 2018 totaled $309
million excluding JV capital, of which $209 million was directed to
drilling and capital workovers.
Cash provided by operating activities for the first six months of
2018 was $234 million and free cash flow was $(75) million after
taking into account capital that was funded by BSP.
Operational Update
CRC operated an average of ten rigs during the second quarter of
2018 and drilled 83 development wells with CRC and JV capital (51
steamflood, 18 waterflood, three primary and 11 unconventional).
Steamfloods and waterfloods have different production profiles and
longer response times than typical conventional wells and, as a
result, the full production contribution may not be experienced in
the same year that the well is drilled. In the San Joaquin basin,
CRC operated seven rigs and produced approximately 98,000 BOE per
day for the second quarter of 2018. The Los Angeles basin had
three rigs directed toward waterflood projects, and contributed
25,000 BOE per day of production in the second quarter. Production
for the Ventura basin was 6,000 BOE per day and the Sacramento
basin produced 5,000 BOE per day. Neither of these areas had
active drilling programs in the period.
2018 Capital Budget
With stronger expected cash flows from commodity price improvements
and increased production from the Elk Hills transaction, combined
with synergies resulting from the transaction, CRC increased its
2018 capital program to a range from $650 million to $700 million,
which includes approximately $100 million or more of JV capital,
subject to further adjustments based on commodity prices in the
second half of the year and other developments. This is an
increase from its previously stated range of $550 million to $600
million. The incremental investment builds on the momentum created
to increase second half 2018 production with a more substantial
effect in 2019. The additional capital will primarily be deployed
to drilling, workovers and facilities in the San Joaquin, Los
Angeles and Ventura basins. As expected, CRC received funding of a
third tranche of the BSP capital in the second quarter of 2018.
Debt Reduction Update
CRC continued to validate its commitment to strengthening the
balance sheet. In the second quarter of 2018, CRC repurchased a
total of $143 million in aggregate principal amount of the
Company's outstanding debt for $118 million in cash.
Borrowing Base Redetermination
As previously disclosed, effective May 1, 2018, CRC's borrowing
base under its 2014 Credit Agreement was reaffirmed at $2.3
billion.
Hedging Update
CRC continues to opportunistically seek hedging transactions to
protect its cash flow, operating margins and capital program while
maintaining adequate liquidity. For the first and second quarters
of 2019, CRC has hedged approximately 42,000 and 37,000 barrels per
day, at approximately $64 Brent and $67 Brent, respectively. In the
third and fourth quarters of 2019, the Company hedged approximately
32,000 and 22,000 barrels per day, at approximately $71 and $73
Brent, respectively. A significant majority of the 2019 hedges do
not contain caps, thereby providing upside to oil price movements.
CRC also purchased LIBOR interest rate caps in the second quarter
of 2018 which cap the interest rate on a notional $1.3 billion at
one-month LIBOR of 2.75% through May 2021.
A full-text copy of the Form 10-Q is available for free at:
https://is.gd/uDFIsV
About California Resources
California Resources Corporation -- http://www.crc.com/-- is an
oil and natural gas exploration and production company in
California. The Company operates its resource base exclusively
within the State of California, applying complementary and
integrated infrastructure to gather, process and market its
production. Using advanced technology, California Resources
Corporation focuses on safely and responsibly supplying affordable
energy for California by Californians.
California Resources reported a net loss attributable to common
stock of $266 million for the year ended Dec. 31, 2017, compared to
net income attributable to common stock of $279 million for the
year ended Dec. 31, 2016. As of June 30, 2018, California
Resources had $6.94 billion in total assets, $893 million in total
current liabilities $5.07 billion in long-term debt, $265 million
in deferred gain and issuance costs, $617 million in other
long-term liabilities, $735 million in mezzanine equity and a total
deficit of $645 million.
* * *
In November 2017, S&P Global Ratings affirmed its 'CCC+' corporate
credit rating on Los Angeles-based exploration and production
company California Resources Corp (CRC). The outlook is negative.
"The affirmation of the 'CCC+' corporate credit rating on CRC
reflects our assessment of the company's improving, but still weak
financial measures combined with increased capital spending that
should stem production declines following a tumultuous 2016."
In November 2017, Moody's Investors Service upgraded California
Resources' Corporate Family Rating (CFR) to 'Caa1' from 'Caa2' and
Probability of Default Rating (PDR) to 'Caa1-PD' from 'Caa2-PD'.
Moody's said the upgrade of CRC's CFR to 'Caa1' and stable outlook
reflects CRC's improved liquidity and the likelihood that it will
have sufficient liquidity to support its operations for at least
the next two years at current commodity prices.
CHINA COMMERCIAL: Regains Compliance with Nasdaq Listing Rules
--------------------------------------------------------------
China Commercial Credit, Inc. received a letter on Aug. 22, 2018
from The Nasdaq Stock Market stating that the Company has regained
compliance with Listing Rule 5250(b).
As previously disclosed Feb. 28, 2018, Nasdaq notified the Company
that it did not comply with the minimum $35 million market value of
listed securities for The Nasdaq Capital Market set forth in
Listing Rule 5550(b)(2) nor the alternative compliance standards
under Nasdaq Listing Rule 5550(b) of (i) net income from continuing
operations of $500,000 in its last completed fiscal year or in two
of the last three fiscal years, or (ii) stockholders' equity of at
least $2.5 million. On Aug. 22, 2018, the Company received the
Notification Letter from Nasdaq notifying the Company that based on
the Company's Quarterly Report on Form 10-Q for the period ended
June 30, 2018 filed on Aug. 17, 2018, in which it reported
stockholders' equity of $4,132,773, Nasdaq has determined that the
Company satisfies the $2.5 million stockholders' equity requirement
under Listing Rule 5550(b)(1) and this matter is now closed.
About China Commercial Credit
Founded in 2008, China Commercial Credit --
http://www.chinacommercialcredit.com/-- currently engages in used
luxurious car leasing. The used luxurious car business is
conducted under the brand name "Batcar" by the Company's VIE
entity, Beijing Youjiao Technology Limited.
China Commercial incurred a net loss of US$10.69 million for the
year ended Dec. 31, 2017, compared to a net loss of US$2.58
million for the ended Dec. 31, 2016. As of June 30, 2018, China
Commercial had US$4.14 million in total assets, US$15,246 in total
liabilities and US$4.13 million in total shareholders' equity.
The report from the Company's independent accounting firm Marcum
Bernstein & Pinchuk LLP on the consolidated financial statements
for the year ended Dec. 31, 2017, includes an explanatory paragraph
stating that the Company has incurred significant losses
and needs to raise additional funds to meet its obligations and
sustain its operations. These conditions raise substantial doubt
about the Company's ability to continue as a going concern.
CHURCHILL DOWNS: Moody's Ups CFR to Ba2 & Secured Loans to Ba1
--------------------------------------------------------------
Moody's Investors Service upgraded Churchill Downs Incorporated's
Corporate Family Rating to Ba2 from Ba3. The company's senior
secured credit facilities were also upgraded one-notch, to Ba1 from
Ba2, while the company's senior unsecured notes were upgraded
2-notches to Ba3 from B2. The rating outlook is stable. Churchill
has a SGL-1 Speculative Grade Liquidity rating.
"The upgrade acknowledges CDI's demonstrated earnings stability and
ability to generate a meaningful amount of positive free cash along
with its continued policy and practice of operating with moderate
leverage," stated Keith Foley, a Senior Vice President at Moody's.
"Combined, these factors make it possible for CDI to maintain the
improved financial flexibility and credit profile the company
achieved since the sale of its Big Fish subsidiary earlier this
year."
Although CDI hasn't quite hit Moody's previously stated 3.0 times
debt/EBITDA upgrade trigger, debt/EBITDA for the latest 12-month
period ended June 30, 2018 -- debt/EBITDA is calculated on a gross
debt basis, incorporate Moody's standard adjustments, and exclude
joint venture EBITDA-- was close at about 3.3 times, the company
has increased its balance sheet cash significantly since the Big
Fish acquisition. As a result, net debt/EBITDA, assuming only half
of the company's balance sheet cash is used to define net debt, was
at 3.0 times.
The stable rating outlook considers the view that CDI will continue
to maintain a financial policy consistent with its current rating.
And while Moody's expects there will be short periods where
debt/EBITDA will rise as a result of acquisitions and other
investment activity, it's expected the company will continue to
maintain debt/EBITDA at/below 4.0 times, along with a very good
liquidity profile.
Upgrades:
Issuer: Churchill Downs Incorporated
Probability of Default Rating, Upgraded to Ba2-PD from Ba3-PD
Corporate Family Rating, Upgraded to Ba2 from Ba3
Senior Secured Term Loan, Upgraded to Ba1 (LGD2) from Ba2 (LGD2)
Senior Secured Revolving Credit Facility, Upgraded to Ba1 (LGD2)
from Ba2 (LGD2)
Senior Unsecured Regular Bond/Debenture, Upgraded to Ba3 (LGD5)
from B2 (LGD5)
Outlook Actions:
Issuer: Churchill Downs Incorporated
Outlook, Remains Stable
Affirmations:
Issuer: Churchill Downs Incorporated
Speculative Grade Liquidity Rating, Affirmed SGL-1
RATINGS RATIONALE
In addition to CDI's demonstrated earnings stability and ability to
generate a meaningful amount of positive free cash, CDI's credit
profile takes into consideration its consistent policy and practice
of operating with relatively moderate leverage, the strong history,
popularity, and performance of the Kentucky Derby. Credit
challenges include the highly discretionary nature of consumer
spending on traditional gaming and betting activities in general,
along with the fact that the Kentucky Derby accounts for a
significant portion of the company's consolidated segment EBITDA.
Ratings improvement is limited at this time given CDI's relatively
small size and diversification compared to other larger and more
diversified 'Ba' rated gaming issuers, and Moody's expectation that
CDI will not likely choose to operate with debt/EBITDA below 3.0
times, the level needed for a higher rating. A higher rating also
requires that the company maintain its very good liquidity profile.
Ratings could be downgraded if it appears CDI changes its financial
policy to allow debt/EBITDA to rise above 4.0 times.
Churchill Downs, Inc. owns and operates racetracks in Kentucky,
Florida, Illinois and Louisiana; casinos in Mississippi, Florida,
Louisiana, Ohio, Maine, New York, Colorado, and Maryland; off-track
betting operations in Illinois and Louisiana; and the country's
leading online wagering service, TwinSpires.com. CDI also owns and
has interests in a variety of racing- and wagering-related data
companies. In Kentucky, CDI owns and operates the Kentucky Derby,
the longest continuously held annual sporting event in the U.S. Net
revenue for the company's latest 12-month period ended June 30,
2018 was about $945 million.
CONCORDIA INTERNATIONAL: Files Copies of Recapitalization Docs.
---------------------------------------------------------------
Concordia International Corp. filed copies of the substantially
finalized forms of (i) the credit and guaranty agreement, among the
Corporation, as borrower, certain of its subsidiaries, as
guarantors, GLAS Trust Company LLC, as administrative agent, and
the lenders party thereto, and (ii) the indenture, among the
Corporation, as issuer, the Guarantors and GLAS, as trustee, each
in connection with the Corporation's previously announced
recapitalization transaction, on SEDAR at www.SEDAR.com.
The Documents are available for free at:
https://is.gd/lDReYK
https://is.gd/MUBeNj
About Concordia
Based in Ontario, Canada, Concordia -- http://www.concordiarx.com/
-- is an international specialty pharmaceutical company with a
diversified portfolio of more than 200 patented and off-patent
products, and sales in more than 90 countries. Going forward, the
Company is focused on becoming a leader in European specialty,
off-patent medicines. Concordia operates out of facilities in
Mississauga, Ontario and, through its subsidiaries, operates out of
facilities in Bridgetown, Barbados; London, England and Mumbai,
India.
Concordia reported a net loss of US$1.59 billion for the year ended
Dec. 31, 2017, compared to a net loss of US$1.31 billion for the
year ended Dec. 31, 2016. As of June 30, 2018, Concordia had
US$2.12 billion in total assets, US$4.25 billion in total
liabilities and a total shareholders' deficit of US$2.13 billion.
COTT CORP: S&P Alters Outlook to Stable & Affirms 'B' ICR
---------------------------------------------------------
S&P Global Ratings said it revised its outlook on Cott Corp. to
stable from positive and affirmed its 'B' long-term issuer credit
rating on the company.
S&P Global Ratings also affirmed its 'B' issue-level rating, with a
'4' recovery rating, on the company's senior unsecured notes. The
'4' recovery rating reflects S&P's expectation of average recovery
(30%-50%; rounded estimate 40%) in a default scenario.
S&P said, "The outlook revision reflects our expectation that
leverage will remain in the high-4x area in 2018 and 2019 because
we expect management to pursue an acquisitive strategy to expand
the company. Previously, we had expected leverage to improve to the
low-4x area following the legacy business divestiture, but now
expect that excess cash flows and debt, if needed, will fund
acquisitions. We believe Cott's cash balance and free cash flow
generation should provide sufficient financial flexibility to
pursue material acquisitions, without significantly increasing
debt. Also, if leverage were to improve below our upside threshold
of 4.5x, we would expect this to be temporary and that management
would redeploy capital toward larger acquisitions that could
increase leverage to 5x or above.
"Our weak business risk profile reflect Cott's position as the
largest home-office-delivery (HOD) bottled water provider by volume
and one of the largest providers of coffee and filtration services
in the U.S. The legacy business divestiture improved margins by
about 200 basis points to 13.9% in 2017. The company is currently
facing some margin pressure due to higher freight costs in Cott's
route-based services (RBS) division. Nevertheless, we expect
margins to remain about 13%-14% because higher fuel costs will be
somewhat offset by price increases implemented in third-quarter
2018. Although the divesture lowered Cott's scale and increased the
company's reliance on home office water delivery, we view Cott's
focus on water and coffee as positive credit factors, reflecting
the company's good market share in various geographies and better
earnings stability. We expect Cott's existing delivery platform
combined with future tuck-in acquisitions will translate into
higher revenue growth and margins, along with a balanced portfolio
of growing beverage categories.
"The stable outlook reflects our expectation that the company will
maintain adjusted debt-to-EBITDA in mid-to-high 4x area and EBITDA
interest coverage above 3x and also reflects the possibility of
leverage increasing up to 6x temporarily due to debt-funded
acquisitions.
"We could lower the rating if EBITDA interest coverage approaches
2x due to a sizable debt-funded acquisition or underperformance in
the existing or acquired businesses. We believe such a scenario
would be precipitated by a high single-digit revenue decline and
more than 500 basis points of margin pressure.
"We could raise the ratings if the company strengthens its credit
ratios, including sustained adjusted debt-to-EBITDA below 4.5x and
funds from operations-to-debt above 15%, while expanding its market
share in growing beverage categories. We believe a growing organic
revenue base, sustained higher margins, and a deleveraged capital
structure could lead to a potential improvement in Cott's credit
profile."
CROSSROAD FAMILY: Case Summary & 20 Largest Unsecured Creditors
---------------------------------------------------------------
Debtor: Crossroad Family Farms, GP
dba Crossroads Family Farms, Inc.
1016 East 700 North
Fortville, IN 46040
Business Description: Crossroad Family Farms, GP --
http://www.crossroadsff.com--
is a privately held company in the
crops farming business.
Chapter 11 Petition Date: August 23, 2018
Court: United States Bankruptcy Court
Southern District of Indiana (Indianapolis)
Case No.: 18-06520
Judge: Hon. James M. Carr
Debtor's Counsel: Jeffrey M. Hester, Esq.
HESTER BAKER KREBS LLC
One Indiana Square, Suite 1600
211 N. Pennsylvania Street
Indianapolis, IN 46204-1816
Tel: 317-833-3030
Fax: 317-833-3031
Email: jhester@hbkfirm.com
Total Assets: $1,888,697
Total Liabilities: $7,506,694
The petition was signed by Bradley Stephenson, authorized
signatory.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 20 largest unsecured creditors is available
for free at:
http://bankrupt.com/misc/insb18-06520.pdf
CROSSROADS FAMILY FARMS: Case Summary & Top Unsecured Creditors
---------------------------------------------------------------
Affiliated companies that have filed voluntary petitions seeking
relief under Chapter 11 of the Bankruptcy Code:
Debtor Case No.
------ --------
Crossroads Family Farms Facilities, LLC 18-06547
1016 East 700 North
Fortville, IN 46040
Crossroads Family Farms Equipment, LLC 18-06554
1016 East 700 North
Fortville, IN 46040
Business Description: Crossroads Family Farms is a family owned
farm located in Fortville, Indiana.
Chapter 11 Petition Date: August 24, 2018
Court: United States Bankruptcy Court
Southern District of Indiana (Indianapolis)
Judge: Hon. James M. Carr
Debtors' Counsel: Jeffrey M. Hester, Esq.
HESTER BAKER KREBS LLC
One Indiana Square, Suite 1600
211 N. Pennsylvania Street
Indianapolis, IN 46204-1816
Tel: 317-833-3030
Fax: 317-833-3031
Email: jhester@hbkfirm.com
Assets and Liabilities:
Assets Liabilities
---------- -----------
Crossroads Facilities $176 $6,985,250
Crossroads Equipment $132,426 $7,215,149
The petitions were signed by Bradley Stephenson, managing member.
A full-text copy of Crossroads Family Farms Facilities' petition
containing, among other items, a list of the Debtor's three
unsecured creditors is available for free at:
http://bankrupt.com/misc/insb18-06547.pdf
A full-text copy of Crossroads Family Farms Equipment's petition
containing, among other items, a list of the Debtor's 12 unsecured
creditors is available for free at:
http://bankrupt.com/misc/insb18-06554.pdf
CURAE HEALTH: Case Summary & 30 Largest Unsecured Creditors
-----------------------------------------------------------
Lead Debtor: Curae Health Inc.
1721 Midpark Road, Suite B200
Knoxville, TN 37921
Business Description: Curae Health -- http://www.curaehealth.org
-- is a 501(c)(3) not-for-profit health
system formed to address the needs of rural
healthcare. Focusing on rural community
hospitals in the Southeastern US, Curae
collaborates with medical staff and
communities to add new services and upgrade
medical facilities, alleviating the need for
patients to travel long distances for their
healthcare needs. This effort reverses
patient departures to other communities and
ultimately adds new jobs at the local level.
Curae Health's primary goals are to:
(a) own and operate community hospitals;
provide high quality care to the communities
it serves; and seek strategic affiliations
to ensure the hospital's success. Curae
Health works with small to medium sized sole
community providers.
Chapter 11 Petition Date: August 24, 2018
Affiliated companies that have filed voluntary petitions seeking
relief under Chapter 11 of the Bankruptcy Code:
Debtor Case No.
------ --------
Curae Health Inc. (Lead Case) 18-05665
Amory Regional Medical Center, Inc. 18-05675
Batesville Regional Medical Center Inc. 18-05676
Clarksdale Regional Medical Center Inc. 18-05678
Amory Regional Physicians, LLC 18-05680
Batesville Regional Physicians, LLC 18-05681
Clarksdale Regional Physicians, LLC 18-05682
Court: United States Bankruptcy Court
Middle District of Tennessee (Nashville)
Judge: Hon. Charles M Walker
Debtors' Counsel: Michael Malone, Esq.
POLSINELLI PC
401 Commerce Street, Suite 900
Nashville, TN 37219
Tel: (615) 259-1510
Fax: (615) 259-1573
Email: mmalone@polsinelli.com
- and -
David E. Gordon, Esq.
Caryn E. Wang, Esq.
POLSINELLI PC
1201 West Peachtree Street NW
Atlanta, Georgia
Tel: (404) 253-6000
Fax: (404) 684-6060
Email: dgordon@polsinelli.com
cewang@polsinelli.com
Debtors'
Financial
Advisors: GLASSRATNER ADVISORY & CAPITAL GROUP LLC
Debtors'
Special
Counsel: EGERTON MCAFEE ARMISTEAD & DAVIS, P.C.
Debtors'
Investment
Banker: MORGAN STANLEY
Debtors'
Claims &
Noticing
Agent: BMC GROUP, INC.
Website: https://426.creditorinfo.com/
Estimated Assets: $10 million to $50 million
Estimated Liabilities: $50 million to $100 million
The petitions were signed by CEO Stephen Clapp.
A full-text copy of Curae Health's petition is available for free
at:
http://bankrupt.com/misc/tnmb18-05665.PDF
List of Debtor's 30 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Community Health Systems Loan $28,609,418
4000 Meridian Blvd.
Franklin, TN 37067
Terry Hendon
Tel: 615-465-7110
Medhost Trade Debt $3,408,652
2739 Momentum Place
Chicago, IL 60689-5327
Tara Mauldin
Tel: 615-761-2386
Email: tara.mauldin@medhost.com
Mississippi Emergency Physician Trade Debt $1,802,717
Services, LLC
200 Corporate Blvd.
Lafayette, LA 70508
Phil Parker
Tel: 337-609-1877
Comprehensive Hosp of MS, LLC Trade Debt $1,303,259
200 Corporate Blvd.
Lafayette, LA 70508
David Schillinger, M.D.
Tel: 800-893-9698
CHSPSC, LLC Trade Debt $1,201,749
4000 Meridian Blvd.
Franklin, TN 37067
Cortney Edmondson
Tel: 615-465-7686
Email: Cortney_edmondson@chs.net
Northwest Medical Center Net $1,014,835
1530 U.S. Highway 43 Working
Winfield, AL 35594 Capital
Jim Dickinson Proceed
President
Monroe County Tax Collector Local $929,889
P.O. Box 684 Property
301. S. Chestnut St. Tax
Aberdeen, MS 39730
Pat Kirholz
Tel: 662-369-6484
Strategic Healthcare Resources Trade Debt $766,267
121 Leinart St.
Clinton, TN 37716
Steve Clapp
Tel: 865-607-9923
CHS dba Shared Services Trade Debt $561,573
Center+Ft. Smith
4600 Towson Ave., Suite 136
Fort Smith, AR 72901
Shaun Beggs
Tel: 479-401-5036
Hospital Housekeeping Systems, Ltd. Trade Debt $471,389
216 E. 4th Street
Austin, TX 78701
Bobby Floyd
Tel: 800-229-2028
Cardinal Health, Incorporated Trade Debt $460,385
7000 Cardinal Place
Dublin, OH 43017
Mae Zacarias
Tel: 866-739-4754, ext 10060
and 800-964-5227
Egerton McAfee Armistead & Trade Debt $323,429
Davis P.C.
900 South Gay St., Suite 1400
Knoxville, TN 37902
Stephen McSween
Tel: 865-546-0500
Owens and Minor Trade Debt $335,181
9120 Lockwood Blvd
Mechanicsville, VA 23116
Michelle Thomas
Tel: 804-723-7626
Panola County Tax Assessor Local $318,421
151 Public Square, Suite C Property
Batesville, MS 38606 Taxes
David Garner
Tel: 662-563-6215
Brentwood Behavioral Trade Debt $310,000
Healthcare
3531 E. Lakeland Dr.
Flowood, MS 39232
Alison Buckley
Tel: 601-936-7817
Email: alison.buckley@uhsinc.com
DSI Security Services Trade Debt $309,011
600 W. Adams Street
Dothan, AL 36302
Tony Earnest
Tel: 334-805-3375
Philips Healthcare Trade Debt $295,195
300 Minuteman Rd.
Andover, MA 01810
Bernard DiPerzio
Tel: 866-472-9100, ext 3670
HHS LLC Trade Debt $255,362
P O Box 826
San Antonio, TX 78293-0826
Bobby Floyd
Tel: 800-229-2028
Johnson and Johnson Healthcare Trade Debt $228,575
Stryker Orthopaedics Trade Debt $217,327
Anesthesia Assoc of MS PLLC Trade Debt $214,868
GE Healthcare IITS USA Corp Trade Debt $214,706
Intuitive Surgical Inc. Trade Debt $210,928
CDW Computer Centers Inc. Trade Debt $180,965
3M Health Information Systems Trade Debt $180,016
Medtronic USA Inc. Trade Debt $179,532
Stat Imaging Solutions LLC Trade Debt $178,996
Email: billing@statisllc.com
HHS Culinary and Nutrition Trade Debt $174,157
Morrison Management Trade Debt $173,253
Specialists, Inc
Mid South Rehab Services, Inc. Trade Debt $172,400
Email: wrogers@midsouthrehab.com
CYTOSORBENTS CORP: Awarded up to $3M in SBIR Bridge Funding
-----------------------------------------------------------
The National Heart, Lung, and Blood Institute (NHLBI), a division
of the National Institutes of Health (NIH), has awarded
CytoSorbents Corporation a three-year Phase IIB Bridge SBIR (Small
Business Innovation Research) award, valued at up to $3 million, to
facilitate and accelerate the commercialization of its HemoDefend
red blood cell (RBC) transfusion filter.
The HemoDefend-RBC filter is designed to improve the safety and
quality of the blood supply by reducing non-infectious contaminants
in packed red blood cells such as potassium, free hemoglobin,
bioactive lipids, cytokines, and antibodies. These contaminants
can cause problematic and potentially life-threatening transfusion
reactions. There are more than 100 million RBC units transfused
worldwide each year, and according to the American Red Cross,
someone in the U.S. needs blood every 2 seconds.
Dr. Phillip Chan, chief executive officer stated, "The
HemoDefend-RBC filter development has been generously supported by
NHLBI and U.S. Special Operations Command (USSOCOM) with
approximately $1.7 million in non-dilutive SBIR Phase I and II
funding. In this next phase, NHLBI will match company funds
dollar-for-dollar up to approximately $1 million each year for
three years, for total funding of approximately $3 million, subject
to the availability of funds and satisfactory progress of the
project. This funding will be used to help finance the costs of
the HemoDefend pRBC pivotal clinical trial that is expected to
begin in Q1 2019 and support U.S. FDA regulatory approval, as well
as initial commercialization activities including manufacturing
scale-up. We thank NHLBI for their continued support."
Dr. Maryann Gruda, director of Biology added: "The financial and
resource support by NHLBI and USSOCOM has enabled our team at
CytoSorbents to rapidly design, test, optimize, and validate the
HemoDefend-RBC filter in internal and external studies. This
process highlights the flexibility of our bead-based blood
purification platform, and the deep expertise of translational
product development at our company. Following our initial
pre-submission discussions with the FDA that were facilitated by
NHLBI, we look forward to potentially obtaining investigational
device exemption (IDE) protocol approval, successfully executing
the pivotal study, and making the HemoDefend-RBC filter available
to patients in need in the U.S. and around the world."
The HemoDefend-RBC filter is not yet approved in the U.S. or
elsewhere. This Phase IIB Bridge will be funded with Federal funds
from the National Heart, Lung, and Blood Institute, of the National
Institutes of Health, under Award No. R44HL141928.
About CytoSorbents
Based in Monmouth Junction, New Jersey, CytoSorbents Corporation is
engaged in critical care immunotherapy commercializing its CytoSorb
blood purification technology to reduce deadly uncontrolled
inflammation in hospitalized patients around the world, with the
goal of preventing or treating multiple organ failure in
life-threatening illnesses. The Company, through its subsidiary
CytoSorbents Medical Inc. (formerly known as CytoSorbents, Inc.),
is engaged in the research, development and commercialization of
medical devices with its blood purification technology platform
which incorporates a proprietary adsorbent, porous polymer
technology.
Cytosorbents reported a net loss attributable to common
shareholders of $8.79 million on $15.15 million of total revenue
for the year ended Dec. 31, 2017, compared to a net loss
attributable to common shareholders of $11.76 million on $9.52
million of total revenue for the year ended Dec. 31, 2016. As of
June 30, 2018, Cytosorbents had $34.94 million in total assets,
$13.38 million in total liabilities and $21.56 million in total
stockholders' equity.
The Company's independent registered public accountants' report for
the year ended Dec. 31, 2017 includes an explanatory paragraph that
expresses substantial doubt about the Company's ability to continue
as a "going concern." WithumSmith+Brown, PC, in East Brunswick,
New Jersey, stated that the Company sustained net losses for the
years ended December 31, 2017, 2016 and 2015. Further, the Company
believes it will have to raise additional capital to fund its
planned operations for the twelve month period through March 2019.
These matters raise substantial doubt regarding the Company's
ability to continue as a going concern.
DANAOS CORP: Willkie Advises Lenders on $2.2-Bil. Restructuring
---------------------------------------------------------------
Willkie's London and New York offices advised a syndicate of
lenders on the refinancing of two facility agreements, secured by
vessels owned and chartered by an international container ship
operator.
Danaos Corporation (NYSE: DAC), based in Greece and headed by
well-known shipping magnate Dr. John Coustas is, together with its
international subsidiaries (the "Danaos Group"), one of the world's
largest owners of container ships, with a fleet of some 55 vessels.
On August 10, 2018, Danaos and lenders holding $2.2 billion of its
debt completed an out-of-court restructuring that will strengthen
the Danaos Group's capital structure.
The implementation of a comprehensive debt refinancing agreement
with the company's lenders, as well as its major shareholder and
the manager of its containership fleet, has resulted in a
significant debt reduction for Danaos of approximately $551
million, the resetting of financial and restrictive covenants in
its credit facilities, modified interest rates and amortization
profiles and the extension of existing debt maturities by
approximately five years, to December 31, 2023.
A previous restructuring was completed in 2011, but the subsequent
collapse of Hanjin Shipping (one of the Danaos Group's major
charterers) in April 2016 and the decline in container ship market
conditions meant that the Danaos Group found itself once more in a
position where it needed to restructure its financial obligations.
The latest comprehensive debt refinancing is the culmination of a
lengthy negotiation process, for which Willkie was first retained
in March 2017 by a group of lenders holding $290 million of secured
facilities arranged by ABN AMRO Bank N.V. and maturing on December
31, 2018 (known as the "Pool C Lenders").
The Pool C facilities governed loans secured by, among other
things, vessels owned by subsidiaries which had guaranteed the Pool
C Lenders' debt. Tough conditions in the shipping market and a
resulting liquidity squeeze led to the Danaos Group breaching
certain financial covenants in its credit facilities in September
2016. Waivers in respect of financial covenant breaches expired on
April 1, 2017, but were not extended and so remained outstanding
during negotiations. Against this backdrop, Danaos Group (advised
by Evercore, Skadden, Morgan Lewis, Watson Farley Williams and Alix
Partners) needed to reach a consensual deal before its financial
condition created a "burning platform", necessitating a chapter 11
filing. Along with financial advisors PJT Partners, Willkie
negotiated and agreed a forbearance and term sheet for the Pool C
Facilities in May 2018, followed by a binding contract on June 19,
2018 (the implementation of which was inter-conditional upon the
agreements reached between Danaos and other lenders). Ince & Co.
were brought on board as specialist maritime counsel to the Pool C
Lenders to advise on, amongst other matters, the treatment of
mortgages over Liberian and Cypriot flagged vessels.
The Willkie team included partners Graham Lane and John Longmire
and associates Alexander Roy and Ji Kim from the Business
Reorganization and Restructuring Department, with assistance from
partner Sean Ewen and associate Aymen Mahmoud from the Corporate &
Financial Services Department.
About Danaos Corporation
Danaos Corporation -- http://www.danaos.com/home/default.aspx-- is
one of the largest independent owners of modern, large-size
containerships. Its current fleet of 59 containerships aggregating
353,586 TEUs, including four vessels owned by Gemini Shipholdings
Corporation, a joint venture, ranks Danaos among the largest
containership charter owners in the world based on total TEU
capacity. Its fleet is chartered to many of the world's largest
liner companies on fixed-rate charters. Its long track record of
success is predicated on our efficient and rigorous operational
standards and environmental controls. Danaos Corporation's shares
trade on the New York Stock Exchange under the symbol "DAC".
DANAOS CORPORATION: Closes Comprehensive Debt Refinancing
---------------------------------------------------------
Danaos Corporation(NYSE: DAC), an international owner of
containerships, announced the consummation of its debt refinancing,
significantly strengthening the Company's capital structure and
reducing its outstanding debt by approximately $551 million.
The debt refinancing strengthens the Company's financial position
through the significant debt reduction, reset financial and certain
other credit facility covenants, modified interest rates and
amortization profiles and the extension of existing debt maturities
by approximately five years to December 31, 2023.
Danaos' CEO Dr. John Coustas commented:
"We are pleased to announce the closing of our comprehensive debt
refinancing agreement, which has significantly strengthened Danaos'
financial position and positioned the company for long-term
success. We are grateful to our lenders for their support and to
our legal and financial advisors, including Evercore, Skadden,
Morgan Lewis, Watson Farley and Alix Partners, as well as Simpson
Thacher and Houlihan Lokey who advised the independent transaction
committee of the Board, for the focus and efforts they put forth
towards achieving this favorable outcome."
"Following the completion of this comprehensive debt refinancing,
Danaos has a greatly improved capital structure, and Danaos is well
positioned to take advantage of growth opportunities in the
container sector. Our focus, however, remains on continuously
enhancing our operations and leveraging technical innovation to
provide the highest quality service to our customers."
In connection with this debt refinancing, the Company issued
99,342,271 shares of common stock to certain of the Company's
lenders, representing 47.5% of the Company's outstanding common
stock after such issuance, which diluted existing shareholders
ratably.
Danaos Investment Limited has made various financial and
operational commitments as part of the refinancing transactions,
including a capital contribution to the Company at closing for
which it did not receive any shares, which facilitated the
transaction to the benefit of the Company and all of its
stakeholders. Danaos Investment Limited remains the Company's
largest stockholder following the transaction.
About Danaos Corporation
Danaos Corporation -- http://www.danaos.com/home/default.aspx-- is
one of the largest independent owners of modern, large-size
containerships. Its current fleet of 59 containerships aggregating
353,586 TEUs, including four vessels owned by Gemini Shipholdings
Corporation, a joint venture, ranks Danaos among the largest
containership charter owners in the world based on total TEU
capacity. Its fleet is chartered to many of the world's largest
liner companies on fixed-rate charters. Its long track record of
success is predicated on our efficient and rigorous operational
standards and environmental controls. Danaos Corporation's shares
trade on the New York Stock Exchange under the symbol "DAC".
DANIEL EKE: Final Order to Use Cash Collateral Entered
------------------------------------------------------
The U.S. Bankruptcy Court of the District of Maryland entered a
final order authorizing Daniel Eke and Associates, P.C., to use
cash collateral.
On Deck Capital, Inc., asserts a secured claim against the Debtor
pursuant to a Business Loan and Security Agreement made by On Deck
to the Debtor (the "Note") in the original principal amount of
$170,000 (the "Alleged Pre-Petition Indebtedness"). On Deck
asserts a security interest in and lien upon, among other things,
(collectively, the "Alleged Prepetition Lien") all accounts,
chattel paper, deposit accounts, personal property, assets and
fixtures, general intangibles, instruments, equipment, inventory,
and the proceeds thereof (the "Alleged Prepetition Collateral").
Paragon Management Group, Inc., asserts an interest superior to On
Deck in 40% of the gross revenues derived from the contract between
the Debtor and the Department of Health and Human Services, and
specifically that such gross revenues are not property of the
Debtor's bankruptcy estate (the "Paragon Property").
The Debtor is authorized to use cash collateral for ordinary course
purposes in accordance with the terms and conditions of the Final
Order.
On Deck Capital is granted adequate protection in the amount of
$2,955 per month, replacement lien and security interests.
Within five business days of receipt by the Debtor of any payment
from the Department of Health and Human Services ("DHHS") under the
Debtor's contract with DHHS, including any extension thereof (but
not beyond Aug. 28, 2019), the Debtor will tender to Paragon the
Paragon Property, consisting of 40% of the gross revenues received
by the Debtor from DHHS, i.e., subject to the following
adjustments:
(1) the Debtor may reduce the amount of the Paragon Property to
be paid to Paragon by the following direct costs, but only to the
extent such direct costs are actually paid by the Debtor and
complete documentation supporting such direct costs are provided to
Paragon:
(a) 40% of payroll, payroll service charges and payroll
taxes, as well as applicable statutory fringe benefits (i.e. FICA,
worker's compensation, unemployment insurance, disability, etc.)
for those employees working exclusively on the DHHS contract,
(b) 40% of travel and lodging expenses paid by the Debtor
directly relating to the DHHS contract,
(c) that portion of the GSA Industrial Funding Fee that is
attributed to the DHHS contract,
(d) any other direct charges that are directly identifiable
to the DHHS contract and incurred by the Debtor with mutual
knowledge and consent and
(2) the Debtor will increase the amount to be paid to Paragon by
(d) any of the direct costs that are actually paid by Paragon
directly relating to the DHHS contract,
(e) the GSA Industrial Funding Fee actually paid by Paragon
with respect to the DHHS contract, and
(f) 40% of any direct cost travel reimbursements received from
DHHS.
Notwithstanding, the Final Order will be without prejudice to the
Debtor's right to seek (and Paragon's right to object) to
modification of the Order to require Paragon to advance its share
of payroll expenses in conformity with the Contractor Teaming
Arrangement.
To the extent the Cash Collateral is used by the Debtor and such
use results in a diminution of the value of the Cash Collateral to
On Deck, On Deck is entitled, pursuant to Sections 361(2) and
363(c)(2) of the Bankruptcy Code, a replacement lien in and to all
postpetition assets of the Debtor.
A full-text copy of the Order is available at:
http://bankrupt.com/misc/mdb18-11192_86_Ord.pdf
About Daniel Eke and Associates
Daniel Eke and Associates, P.C., is a minority-owned, Certified
Public Accounting firm. Since 1991, DE&A has serviced the needs of
federal and state government agencies, small and medium-size
companies and non-profit organizations.
Based in Silver Spring, Maryland, Daniel Eke and Associates filed a
Chapter 11 petition (Bankr. D. Md. Case No. 18-11192) on Jan. 29,
2018, estimating under $1 million both in assets and liabilities.
Steven L. Goldberg, Esq., and James M. Greenan, Esq. at McNamee,
Hosea, Jernigan, Kim, Greenan & Lynch, P.A., serve as the Debtor's
counsel.
DFH NETWORK: Case Summary & 20 Largest Unsecured Creditors
----------------------------------------------------------
Debtor: DFH Network Inc.
212 Technology Drive, Suite Q
Irvine, CA 92618
Business Description: DFH Network Inc. -- http://www.dfhnet.com--
is a digital broadcasting company that
delivers Turkish channels to its Turkish-
speaking houses in every region of America
with its subscription system. DFH offers
the opportunity to watch broad news
bulletins, domestic series, domestic ladies
programs, talk shows, discussion programs
and entertainment programs with Turkish
broadcasts consisting of 29 television
channels broadcasted via satellite via 10
TVs, 2 radio channels and IP (Internet).
Chapter 11 Petition Date: August 23, 2018
Court: United States Bankruptcy Court
Central District of California (Santa Ana)
Case No.: 18-13119
Judge: Hon. Erithe A. Smith
Debtor's Counsel: Andy C. Warshaw, Esq.
FINANCIAL RELIEF LAW CENTER, APG
1200 Main Street, Suite G
Irvine, CA 92614
Tel: 714-442-3319
Fax: 714-361-5380
Email: awarshaw@bwlawcenter.com
Total Assets: $57,000
Total Liabilities: $2,974,113
The petition was signed by Suleyman Ozrifaioglu, VP of Technology.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 20 largest unsecured creditors is available
for free at:
http://bankrupt.com/misc/cacb18-13119.pdf
DISASTERS STRATEGIES: U.S. Trustee Unable to Appoint Committee
--------------------------------------------------------------
No official committee of unsecured creditors has been appointed in
the Chapter 11 case of Disasters, Strategies and Ideas Group, LLC
as of August 22, according to a court docket.
About Disasters, Strategies and Ideas Group
Disasters, Strategies and Ideas Group, LLC -- http://dsideas.com--
is an emergency management and homeland security services
consulting firm. DSI was established by former North Carolina and
Florida Emergency Management Director Joe Myers in 2003 to provide
emergency management services to state, local and federal agencies.
Headquartered in Tallahassee, Florida, DSI serves Florida and the
Southeast with a team of professionals that is expert in all
aspects of homeland security and emergency management, with its
primary focus being disaster recovery grant management services.
Disasters, Strategies and Ideas Group, LLC filed a Chapter 11
petition (Bankr. N.D. Fla. Case No. 18-40375), on July 17, 2018.
The Petition was signed by Joseph Myers, vice president. The case
is assigned to Judge Karen K. Specie. The Debtor is represented by
Bruner Wright, P.A. At the time of filing, the Debtor had less
than $50,000 in estimated assets and $1 million to $10 million in
estimated liabilities.
DIVERSE LABEL: Has Access to Cash Collateral Until Sept. 25
-----------------------------------------------------------
Diverse Label Printing, LLC, is authorized to use cash collateral
through Sept. 25, 2018, according to the second interim order
entered by the U.S. Bankruptcy Court for the Middle District of
North Carolina.
Use of cash collateral will be accordance with budget. No payments
will be made to Brian Ewert or Tracy Ewert.
First National Bank of Pennsylvania (FNB) and Bank Capital
Services, LLC (BCS), secured creditors, will continue to receive
adequate protection payments as set forth in the first interim
order. However for this order, no further payments shall be made
on the BCS Car Lease. FNB will have replacement lien to the same
extent as first interim order. FNB may seek additional adequate
protection of its collateral.
A further hearing on the motion will be held at 10:00 a.m. on Sept.
25, 2018, in Courtroom # 2, U.S. Bankruptcy Court, Greensboro
Division.
A full-text copy of the Order is available at:
http://bankrupt.com/misc/ncmb18-10792_74_Ord_Diverse_L.pdf
About Diverse Label Printing
Diverse Label Printing, LLC, a company in Burlington, North
Carolina, specializes in producing labels for food, food
processing, supermarket, consumer goods, and other uses. Diverse
Label sought protection under Chapter 11 of the Bankruptcy Code
(Bankr. M.D.N.C. Case No. 18-10792) on July 23, 2018. In the
petition signed by CEO Ed Bidanset, the Debtor disclosed
$15,750,989 in assets and $10,499,186 in liabilities. Judge
Catharine R. Aron presides over the case. The Debtor tapped hire
Northen Blue, LLP as its legal counsel.
DPW HOLDINGS: Extends Deadline to Organize a Joint Venture
----------------------------------------------------------
Effective Aug. 17, 2018, DPW Holdings, Inc.'s wholly-owned
subsidiary, Digital Power Lending, LLC entered into an amendment to
its agreement, dated June 14, 2018, as amended on June 29, 2018,
and July 16, 2018, to organize and operate a joint venture with
QPAGOS and Innovative Payment Systems, Inc. to extend the expected
closing date of the Agreement to on or before Aug. 31, 2018.
About DPW Holdings
Headquartered in Fremont, California, DPW Holdings, Inc., formerly
known as Digital Power Corp. -- http://www.DPWHoldings.com/-- is a
diversified holding company with a growth strategy of acquiring
undervalued assets, disruptive technologies, sustainable solutions,
and exciting ventures for incubation and development to their full
potential for long-term growth and investor returns. Through its
wholly owned subsidiaries and strategic investments, the company
provides mission-critical products that support a diverse range of
industries, including defense/aerospace, industrial,
telecommunications, medical, crypto-mining, and textiles.
DPW Holdings incurred a net loss of $10.89 million in 2017
following a net loss of $1.12 million in 2016. As of June 30,
2018, DPW Holdings had $53.44 million in total assets, $21.90
million in total liabilities and $31.53 million in total
stockholders' equity.
The report from the Company's independent accounting firm Marcum
LLP, in New York, on the consolidated financial statements for the
year ended Dec. 31, 2017, includes an explanatory paragraph stating
that the Company has a significant working capital deficiency, has
incurred significant losses and needs to raise additional funds to
meet its obligations and sustain its operations. These conditions
raise substantial doubt about the Company's ability to continue as
a going concern.
DR. SHABNAM QASIM: May Use Cash Collateral Until Sept. 6, 2018
--------------------------------------------------------------
Judge Mark X. Mullin of the U.S. Bankruptcy Court for the Northern
District of Texas, Fort Worth Division issued an order granting Dr.
Shabnam Qasim MD PA's expedited motion for approval to use cash
collateral on an interim basis.
On Deck Capital, Inc., asserts an interest in the cash, equipment
and accounts receivable of the Debtor and asserts that such
property constitute cash collateral.
On Deck Capital is granted a replacement lien in the Debtor's
equipment, cash and accounts receivable in which On Deck Capital
held a valid, enforceable, fully perfected and non-avoidable lien
when this case commenced.
Use of cash collateral will be terminated on Sept. 6, 2018. On
that date, a hearing to consider entry of a final order or the
Debtor's continued use of cash collateral will be held.
A full-text copy of the Order is available at:
http://bankrupt.com/misc/18-43088_14_Qasim_Int_Ord.pdf
About Dr. ShabnamQasim MD PA
Dr. Shabnam Qasim MD PA sought Chapter 11 protection (Bankr. N.D.
Tex. Case No. 18-43088) on Aug. 7, 2018, estimating less than $1
million in assets and liabilities. Craig Douglas Davis, Esq., at
Davis, Ermis & Roberts, P.C., serves as counsel to the Debtor.
DULUTH TRAVEL: To Pay Unsecured Creditors in Full at 2% Over 2 Yrs.
-------------------------------------------------------------------
Duluth Travel, Inc., submits a disclosure statement, dated August
17, 2018, in connection with its proposed plan of reorganization
dated August 15, 2018.
The Debtor's Plan provides for the satisfaction of all allowed
administrative claims on the Effective Date or as soon as
practicable thereafter unless otherwise agreed by the holder of
such claim. As to each administrative claim allowed thereafter,
payment will be made as soon as practicable. Debtor's Plan also
provides for the satisfaction of all priority tax indebtedness
either in cash or over a five year period in installments with
interest. There are no known priority claims other than
administrative expense claims and tax claims.
The Debtor estimates approximately $18,000 in general unsecured
claims not separately classified, which are related to two law
firms which the Debtor utilized pre-petition. The same will be
satisfied with payment in full of their claims over two years with
2% interest, payable monthly in the amount of $1,591.30. Payments
will begin five business days after the Effective Date of the Plan,
the same being 30 days after the entry of an order confirming the
Plan, provided that the order has become a final order.
The cash distributions contemplated by the Plan will be funded by
cash generated in the operation of the Reorganized Debtor's
business and a settlement payment equal to $50,000 to be paid by
owner Arthur Salus to settle alleged insider preference claims.
When a debtor files bankruptcy, pursuant to the U.S. Bankruptcy
Code, payments and/or transfers to insiders are subject to being
"clawed" back into the estate unless a valid defense would permit
the insider to retain such payments and/or transfers. Salus asserts
that he has valid defenses to all of the possible avoidance claims
held by the Estate, denies all liability related to the same, and
would defend against such causes of action if asserted against him.
However, in lieu engaging in litigation related to these claims and
incurring attorneys' fees on his behalf, as well as possibly Debtor
incurring significant attorneys' fees related to these issues,
Salus has agreed to make a payment to Debtor on or before the
Effective Date of the Plan, in the amount of $50,000 in full and
final satisfaction of all possible avoidance actions that the
Estate might be able to assert against him.
A full-text copy of the Disclosure Statement is available at:
http://bankrupt.com/misc/ganb18-54894-101.pdf
About Duluth Travel
Duluth Travel -- http://duluthtravel.com-- is a full service
travel agency providing corporate, leisure, government and
incentive travel services for more than 24 years. The Company is a
small business based in Atlanta, Georgia with offices throughout
the United States including Hawaii and Alaska. Duluth Travel is
affiliated with Worldspan, SABRE, Deem Work Fource and Concur
Travel. Duluth Travel is a privately held travel company founded in
1993 by Arthur Salus.
Duluth Travel, Inc. filed a Chapter 11 petition (Bankr. N.D. Ga.
Case No. 18-54894), on March 22, 2018. The Petition was signed by
Arthur D. Salus, CEO. The case is assigned to Judge James R. Sacca.
The Debtor tapped Cohen Pollock Merlin & Small, PC as counsel; and
Alan Salus as accountant. At the time of filing, the Debtor had
$500,000 to $1 million in estimated assets and $1 million to $10
million in estimated liabilities.
ELKHORN JONES: Case Summary & 20 Largest Unsecured Creditors
------------------------------------------------------------
Debtor: Elkhorn Jones Memory Care, LLC
4955 S. Durango Dr., Suite 155
Las Vegas, NV 89113
Business Description: Elkhorn Jones Memory Care, LLC --
http://www.elkhornmemory.com-- operates
an assisted living facility for seniors
with dementia/alzheimer's disease in
Las Vegas, Nevada. The Facility offers
meals, special dietary needs, assistance
with walking, bathing, dressing,
transferring, grooming/shaving, medication
management, activities/socializing and
other services. Elkhorne Jones Memory Care
is located at 6017 Elkhorn Road, Las Vegas,
Nevada.
Chapter 11 Petition Date: August 24, 2018
Court: United States Bankruptcy Court
District of Nevada (Las Vegas)
Case No.: 18-15081
Judge: Hon. Laurel E. Babero
Debtor's Counsel: Matthew C. Zirzow, Esq.
LARSON ZIRZOW & KAPLAN, LLC
850 E. Bonneville Ave.
Las Vegas, NV 89101
Tel: (702) 382-1170
Fax: (702) 382-1169
Email: mzirzow@lzklegal.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Victor Hecker, manager.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 20 largest unsecured creditors is available
for free at:
http://bankrupt.com/misc/nvb18-15081.pdf
EMC HOTELS: Trustee Says Lender Consents to Cash Access
-------------------------------------------------------
Fred Stevens, Chapter 11 Trustee for debtor EMC Hotels and Resorts
LLC, filed with the U.S. Bankruptcy Court of Southern District of
New York a motion for an additional interim order and final order
authorizing him to use cash collateral. He also moved for the
continued grant of adequate protection to Bank Hapoalim B.M. (BHI).
BHI is the Debtor's senior secured lender and it holds a lien on
substantially all of the Debtor's assets, including its cash. As
of Petition Date, BHI Loan is approximately $18.7 million.
The Trustee requires the use of the BHI's cash collateral on a
continued interim basis to pay ordinary operating expenses relating
to the Debtor's hotel, including among other things, payroll, taxes
and payments to ordinary course service providers and vendors, plus
any repairs and small capital improvements required to maintain the
hotel's certificate of occupancy.
The Trustee believes he will have BHI's consent to use cash
collateral for a short period after August 17, 2018 as set forth in
the proposed Second Interim Order, and the Trustee intends to seek
BHI's consent and agreement to the terms of a final order prior to
the final hearing. BHI has made clear that it will not consent to
any Final Order that does not contain milestones in connection with
the Trustee's marketing and sale of the Hotel ("Sale Milestones"),
deadlines by which parties may challenge the extent, validity or
priority of BHI's lien, or other more typical protections.
Further, the Trustee has stated that he will require an appropriate
carve-out as part of any Final Order. The Trustee and BHI are
currently discussing and negotiating the terms of a Final Order.
A full-text copy of the Motion is available at:
http://bankrupt.com/misc/18-22932_44_EMC_M_Cash_Coll.pdf
About EMC Hotels and Resorts
EMC Hotels and Resorts LLC is the owner of the 133-room Time Nyack
Hotel and the real property on which it is located at 400 High
Avenue, Nyack, New York.
An involuntary Chapter 7 petition (Bankr. S.D.N.Y., Case No.
18-22932) was filed against EMC Hotels and Resorts LLC on June 18,
2018, by alleged creditors Evolve Controls, CJB Asset Management
Group LLC, and Consolidated Companies Inc., d/b/a Best Landscape.
On July 20, 2018, the Court entered an order granting a motion to
convert the Chapter 7 case to a case under Chapter 11 of the
Bankruptcy Code. The case is related to EMC Bronxville
Metropolitan LLC, f/k/a Metloft Bronxville, LLC, (Bankr. S.D.N.Y.
Case No. 18-22963).
Judge Robert D. Drain is the case judge.
James B. Glucksman at Rattet PLLC is the Debtor's counsel.
Fred Stevens was appointed as the estates' Chapter 11 trustee. The
Trustee tapped Klestadt Winters Jureller Southard & Stevens, LLP,
as his general counsel, and CBIZ Accounting, Tax and Advisory of
New York, LLC as his financial advisor.
FIELDPOINT PETROLEUM: Gets Capital Raise Proposal to Pay Debt
-------------------------------------------------------------
2390530 Ontario Inc. and Natale Rea (2013) Family Trust sent a
letter to FieldPoint Petroleum Corporation's Board of Directors on
Aug. 16, 2018 stating that they have been actively engaged with the
Company's management to discuss strategic alternatives to improve
the Company's financial and operational position. The Reporting
Persons proposed that the Company would structure a capital raise
as an underwritten rights issue, with the proceeds being used for
debt repayment. As proposed, all of the Company's shareholders
would have the option to acquire new shares through a rights issue,
while a reduction in outstanding debt would give the Company more
flexibility under the credit facility to pursue transactions that
create value for shareholders.
Accordingly, the Reporting Persons stated that they had asked their
representatives to contact the Board members to arrange a time and
place to meet to discuss a proposal for an underwritten rights
issue.
In a Schedule 13D/A filed with the Securities and Exchange
Commission, the Reporting Persons disclosed that they beneficially
own 744,212 shares of common stock of FieldPoint, which represents
6.98 percent, calculated based upon the 10,669,229 shares of Common
Stock outstanding as of Aug. 10, 2018, as reported in the Company's
Quarterly Report on Form 10-Q filed by the Issuer with the
Securities and Exchange Commission on Aug. 14, 2018.
A full-text copy of the regulatory filing is available at:
https://is.gd/DzZL85
About FieldPoint Petroleum
Based in Austin, Texas, FieldPoint Petroleum Corporation (NYSE:FFP)
-- http://www.fppcorp.com/-- is engaged in oil and natural gas
exploration, production and acquisition, primarily in Louisiana,
New Mexico, Oklahoma, Texas and Wyoming.
Fieldpoint Petroleum reported net income of $2.66 million in 2017
compared to a net loss of $2.47 million in 2016. As of June 30,
2018, the Company had $7.44 million in total assets, $5.67 million
in total liabilities and $1.77 million in total stockholders'
equity.
Moss Adams LLP, in Dallas, Texas, the Company's auditor since 2017,
issued a "going concern" qualification in its report on the
consolidated financial statements for the year ended Dec. 31, 2017,
stating that the Company has suffered recurring losses from
operations and has a net capital deficiency that raise substantial
doubt about its ability to continue as a going concern.
FLIPPING EGG: Has Interim Approval to Use Cash Collateral
---------------------------------------------------------
The Hon. Robert L. Jones of the U.S. Bankruptcy Court for the
Northern District of Texas has signed an agreed order authorizing
The Flipping Egg, LLC, to use, on an interim basis, cash collateral
of Happy State Bank.
Adequate protection for Happy State Bank is granted in the form of,
among others, replacement liens and protection payment of $1,500
per month beginning August 15, 2018, paid monthly until
confirmation of plan of reorganization, conversion or dismissal of
case. The replacement liens has the same validity and priority as
its prepetition liens, and shall retroact as of petition date,
August 6, 2018.
Use of cash collateral is permitted on these terms (1) expenditures
in accordance with the submitted budget, (2) timely performance of
obligations as required by the Bankruptcy Code and Procedure, and
court orders, (3) timely filing of operating reports,(4) granting
HSB access to records, premises and collateral for inspection,
provided there is reasonable notice and non-interference with
business affairs, and (5) maintaining of insurance coverage as
required by law.
A full-text copy of the Order is available at:
http://bankrupt.com/misc/18-10194_16_F_Egg_Int_Ord.pdf
About The Flipping Egg
The Flipping Egg, LLC sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. N.D. Tex. Case No. 18-10194) on Aug. 6,
2018. At the time of the filing, the Debtor estimated assets of
less than $500,000 and liabilities of less than $1 million. Judge
Robert L. Jones presides over the case.
FLORIDA PAVEMENT: U.S. Trustee Unable to Appoint Committee
----------------------------------------------------------
No official committee of unsecured creditors has been appointed in
the Chapter 11 cases of Florida Pavement Coatings, Inc. and South
Florida Pavement Coatings, Inc. as of August 22, according to a
court docket.
About Florida Pavement Coatings
Florida Pavement Coatings, Inc., is a manufacturer of asphalt felts
and coatings headquartered in Tampa, Florida. Affiliate South
Florida Pavement Coatings, Inc., is in the lacquers, varnishes,
enamels, and other coatings business.
Florida Pavement Coatings, and South Florida Pavement Coatings
sought protection under Chapter 11 of the Bankruptcy Code (Bankr.
M.D. Fla. Lead Case No. 18-06062) on July 23, 2018. In the
petitions signed by Gregory Polk, president, each Debtor estimated
assets of $1 million to $10 million and liabilities of $1 million
to $10 million. Stichter, Riedel, Blain & Postler, P.A., is the
Debtors' legal counsel.
FOUR SEASONS: Moody's Hikes CFR & 1st Lien Loans Rating to Ba3
--------------------------------------------------------------
Moody's Investors Service upgraded the ratings of Four Seasons
Hotels Limited, including its Corporate Family Rating to Ba3 from
B1, its Probability of Default Rating to Ba3-PD from B2-PD, and the
rating on its senior secured bank facility to Ba3 from B1. The
rating outlook is stable.
"The upgrade reflects Four Seasons' strong performance in the
luxury segment relative to peers, improving leverage and
conservative financial policy," stated Pete Trombetta, Moody's
lodging analyst. "Four Seasons generates the highest revenue per
available room (RevPAR) of our rated lodging companies and
outperforms the luxury segment as a whole," added Trombetta.
Upgrades:
Issuer: Four Seasons Hotels Limited
Probability of Default Rating, Upgraded to Ba3-PD from B2-PD
Corporate Family Rating, Upgraded to Ba3 from B1
Senior Secured 1st Lien Revolver, Upgraded to Ba3 (LGD3) from B1
(LGD3)
Senior Secured 1st Lien Term Loan, Upgraded to Ba3 (LGD3) from B1
(LGD3)
Outlook Actions:
Issuer: Four Seasons Hotels Limited
Outlook, Remains Stable
RATINGS RATIONALE
Four Seasons' credit profile benefits from its well-recognized
brand name, its high proportion of base fees which provides some
stability during a lodging down cycle, its good interest coverage,
high geographic diversity, ownership support and very good
liquidity. The company is constrained by its small scale in term of
revenues and number of hotel rooms versus the lodging industry as a
whole and its concentration in one segment (luxury) of the hotel
industry.
The stable rating outlook reflects Moody's view that Four Seasons'
leverage will improve to about 4.0x and the company's financial
policy will remain conservative with a modest dividend policy and
good cash balances.
Ratings could be upgraded should debt/EBITDA approach 3.5x and
EBITA/interest improve to about 4.5x. Ratings could be downgraded
if leverage increased to above 4.5x or if its liquidity profile
deteriorated materially. A change in financial policy with more
aggressive dividends could results in negative ratings pressure.
Four Seasons Hotels Limited is a wholly owned subsidiary of Four
Seasons Holdings, Inc. Four Seasons is a leading luxury hotel
management company with a portfolio of 110 managed hotel properties
in 43 countries, several of which include a residential component.
Annual net revenues are about $340 million. The company is majority
owned by both Kingdom Holding Company (47.5%) and Cascade
Investment, LLC (47.5%).
The principal methodology used in these ratings was Business and
Consumer Service Industry published in October 2016.
FROM DUSK TIL DAWN: Case Summary & 4 Unsecured Creditors
--------------------------------------------------------
Debtor: From Dusk Til Dawn LLC
188 Eagle Rock Avenue, Suite 1
Roseland, NJ 07068
Business Description: From Dusk Til Dawn LLC filed as a
Single Asset Real Estate (as defined in 11
U.S.C. Section 101(51B)). The Company owns
two properties in Irvington, New Jersey
valued by the Company at $200,000.
Chapter 11 Petition Date: August 23, 2018
Court: United States Bankruptcy Court
District of New Jersey (Newark)
Case No.: 18-26927
Judge: Hon. John K. Sherwood
Debtor's Counsel: Mark Gertner, Esq.
MARK GERTNER, P.C.
76 South Orange Avenue, Suite 104
South Orange, NJ 07079
Tel: 973-763-4446
Email: mark@gertnerlaw.com
theoffice@gertnerlaw.com
Total Assets: $209,234
Total Liabilities: $1,042,723
The petition was signed by Brandon Zaleski, managing member.
A full-text copy of the petition containing, among other items, a
list of the Debtor's four unsecured creditors is available for free
at:
http://bankrupt.com/misc/njb18-26927.pdf
FURNITURE FACTORY: Cash Collateral Use Extended Until Sept. 30
--------------------------------------------------------------
Judge Mary Jo Heston of the Bankruptcy Court for the Western
District of Washington granted Furniture Factory Direct, Inc.,
approval to use cash collateral of Bank of America, in accordance
with its submitted budget. The Court also ordered to make monthly
rental payments to certain leaseholds and monthly payments to the
Bank of America as adequate protection. The bank is also granted
replacement lien and maintenance of insurance payments on assets.
The order will have effect until Sept. 30, 2018. A hearing on
Sept. 17, 2018 shall be conducted, for further extension of the
cash collateral order.
A full-text copy of the Order is available at:
http://bankrupt.com/misc/wawb18-40718_Ord_Furniture_F.pdf
About Furniture Factory Direct
Furniture Factory Direct, Inc. -- https://www.furniturefd.com/ --
manufactures and retails furniture. The company offers bedrooms,
mattresses, accessories, dining rooms, and living room furniture.
Furniture Factory has five store locations serving customers in
Washington and Alaska.
Furniture Factory Direct filed a Chapter 11 petition (Bankr. W.D.
Wash. Case No. 18-40718) on March 5, 2018. In the petition signed
by its president, Svetlozar Ganev Todorov, the Debtor disclosed
total assets of $3.03 million and total liabilities of $2.86
million. Masafumi Iwama, Esq., S. Lamont Bossard, Jr., Esq., and
Mark C. McClure, Esq., at Iwama Law Firm, in Kent, Washington,
serve as counsel to the Debtor.
GILDED AGE: Seeks Interim Approval to Access Cash Collateral
------------------------------------------------------------
Gilded Age Properties, LLC, filed with the U.S. Bankruptcy Court
for the District of Rhode Island a motion seeking to use the cash
collateral of its secured creditor Webster Bank, N.A., through
Sept. 30, 2018, in order to continue its business operations. It
also seeks to provide adequate protection for Webster.
The proposed cash collateral budget for the month of September
contemplates total rent of $26,350, and total expenses of $18,297.
A copy of the budget is available at:
http://bankrupt.com/misc/rib17-10738-263_Gilded_Budget.pdf
A full-text copy of the Motion is available at:
http://bankrupt.com/misc/rib17-10738-263_M_Cash_Gilded.pdf
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. In the petition signed by
member Peter M. Iascone, the Debtor estimated assets and
liabilities between $1 million and $10 million. The case is
assigned to Judge Diane Finkle. The Delaney Law Firm LLC is the
Debtor's bankruptcy counsel. Kirby Commercial, LLC, is the
Debtor's real estate agent.
GUMP'S HOLDINGS: Has Interim Approval to Access Sterling Cash
-------------------------------------------------------------
Judge Laurel E. Babero granted Gump's Holdings, LLC, interim
approval to use cash collateral and access debtor-in-possession
financing.
The Debtor had sought approval to access postpetition financing
from, and use cash collateral of, existing lender Sterling Business
Credit LLC.
Gump's and Sterling are parties to a Loan and Security Agreement in
2015, which amounted to $5,752,649 in total, as of filing of
petition on August 3, 2018. Gump's defaulted and Sterling has a
security interest and first-priority lien over Gump's properties,
documents and cash collateral.
Gump's Holdings have an immediate and critical need to obtain DIP
Financing and use of cash collateral to continue its limited
operations, to administer and preserve the estate, and facilitate
liquidation proceedings. However, the company lacks the working
capital and is unable to obtain financing outside of Sterling,
because of its current financial condition.
As per the budget, Sterling agreed to provide DIP Financing in the
amount of $737,000 and the use of $375,000 of its cash collateral
on an interim basis, subject to adequate protections and benefits
provided in the Bankruptcy Code and also conditioned on the sale of
its intellectual property. The IP sale motion must be filed not
later than Aug. 15, 2018. Imposition of automatic stay is also
modified upon grant of said motion.
According to the Interim Order, the $200,000 retainer paid to
Garman Turner Gordon LLP, the Debtors' proposed counsel by
Corporate Partners II Limited will not be subject to the
prepetition liens or the liens and security interests granted under
the Interim Order.
A full-text copy of the Order is available at:
http://bankrupt.com/misc/18-14683_60_Gumps_Int_Order.pdf
About Gump's Holdings
Gump's Holdings, LLC -- http://www.gumps.com/-- operates as a
holding company. The company, through its subsidiaries, sells
furniture, lighting, rugs, linens, apparel and jewelry.
Gump's Holdings, Gump's Corp. and Gump's By Mail, Inc. sought
protection under Chapter 11 of the Bankruptcy Code (Bankr. D. Nev.
Case Nos. 18-14683 to 18-14685) on Aug. 3, 2018.
In the petitions signed by Tony Lopez, CFO and chief operating
officer, the Debtor disclosed these assets and liabilities:
Assets Liabilities
------------ ------------
Gump's Holdings, LLC $47,031 $16,456,335
Gump's Corp. $9,812,318 $23,713,258
Gump's By Mail, Inc. $4,198,319 $23,755,942
The Debtors tapped Garman Turner Gordon LLP as counsel, and Lincoln
Partners Advisors LLC as financial advisor. Donlin, Recano &
Company Inc. is the claims and notice agent.
HARLAND CLARKE: Bank Debt Trades at 7% Off
------------------------------------------
Participations in a syndicated loan under which Harland Clarke
Holdings Corporation is a borrower traded in the secondary market
at 93.44 cents-on-the-dollar during the week ended Friday, August
17, 2018, according to data compiled by LSTA/Thomson Reuters MTM
Pricing. This represents a decrease of 1.19 percentage points from
the previous week. Harland Clarke pays 475 basis points above LIBOR
to borrow under the $1.78 billion facility. The bank loan matures
on November 3, 2023. Moody's rates the loan 'B1' and Standard &
Poor's gave a 'B+' rating to the loan. The loan is one of the
biggest gainers and losers among 247 widely quoted syndicated loans
with five or more bids in secondary trading for the week ended
Friday, August 17.
HIM & FORTUNE: U.S. Trustee Unable to Appoint Committee
-------------------------------------------------------
No official committee of unsecured creditors has been appointed in
the Chapter 11 case of Him & Fortune Inc. as of August 22,
according to a court docket.
About Him & Fortune Inc.
Him & Fortune Inc. sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. E.D.N.Y. Case No. 18-74714) on July 13,
2018. At the time of the filing, the Debtor disclosed that it had
estimated assets of less than $50,000 and liabilities of less than
$100,000. The Debtor tapped Gabor & Marotta, LLC as its legal
counsel.
HOUTEX BUILDERS: Case Summary & 20 Largest Unsecured Creditors
--------------------------------------------------------------
Affiliated companies that have filed voluntary petitions seeking
relief under Chapter 11 of the Bankruptcy Code:
Debtor Case No.
------ --------
HouTex Builders, LLC 18-34658
17 Courtlandt Place
Houston, TX 77006
415 Shadywood, LLC 18-34659
17 Courtlandt Place
Houston, TX 77010
2203 Looscan Lane, LLC 18-34660
17 Courtlandt Place
Houston, TX 77006
Business Description: The Debtors are privately held companies
engaged in activities related to real
estate.
Chapter 11 Petition Date: August 23, 2018
Court: United States Bankruptcy Court
Southern District of Texas (Houston)
Judges: Hon. Jeffrey P Norman (18-34658)
Hon. David R Jones (18-34659)
Hon. Eduardo V Rodriguez (18-34660)
Debtors' Counsel: Charles M. Rubio, Esq.
DIAMOND MCCARTHY, LLP
909 Fannin Street, Suite 1500
Houston, TX 77010
Tel: 713-333-5127
Fax: 713-333-5195
Email: crubio@diamondmccarthy.com
Assets and Liabilities:
Estimated Estimated
Assets Liabilities
----------- -----------
HouTex Builders $1 mil. to $10 million $1 mil. to $10
million
415 Shadywood, LLC $1 mil. to $10 million $1 mil. to $10
million
2203 Looscan Lane $1 mil. to $10 million $1 mil. to $10
million
The petitions were signed by Charles C. Foster, manager.
A full-text copy of HouTex Builders's petition containing, among
other items, a list of the Debtor's 11 unsecured creditors is
available for free at:
http://bankrupt.com/misc/txsb18-34658.pdf
A full-text copy of 415 Shadywood's petition containing, among
other items, a list of the Debtor's 20 largest unsecured creditors
is available for free at:
http://bankrupt.com/misc/txsb18-34659.pdf
A full-text copy of 2203 Looscan Lane's petition containing, among
other items, a list of the Debtor's 20 largest unsecured creditors
is available for free at:
http://bankrupt.com/misc/txsb18-34660.pdf
IBEX, LLC: Reaches Agreement on Use of Cash Collateral
------------------------------------------------------
IBEX, LLC, and First National Bank of Pennsylvania have reached an
agreement regarding the Debtor's use of cash collateral and the
Bank's treatment under the Debtor's Plan of Reorganization.
The Debtor continues to operate and use the Bank's cash collateral
with the Bank's consent under Section 363(c)(2)(A). Out of an
abundance of caution, the Debtor submitted a motion seeking
approval of a stipulated order.
The Debtor seeks entry of a stipulated order authorizing Debtor's
use of cash collateral from Aug. 1, 2018 through the Effective Date
of the Debtor's plan of reorganization or dismissal or conversion
of the instant bankruptcy case.
The Debtor operates a Right at Home franchise in Colorado Springs.
The Debtor purchased its Right at Home franchise on January 1,
2017. Litigation against the seller, franchisor, and others is
pending. After purchasing the franchise, the Debtor
discovered that (a) the previous owner of the business had made
material misrepresentations to Debtor's management in connection
with the purchase of the business and (b) the franchisor, Right at
Home, Inc., knew and failed to disclose material information
regarding the seller and the state of the franchise the Debtor was
purchasing. The instant Chapter 11 bankruptcy was filed to allow
the Debtor to continue operations and reorganize its affairs
despite the problems caused by the former owner and management.
A full-text copy of the Motion is available at:
http://bankrupt.com/misc/cob17-16031_267_M_Cash.pdf
About IBEX, LLC
Ibex, LLC -- http://www.rightathome.net/colorado-springs-- is a
locally owned and operated franchise office of Right at Home Inc.,
a senior home care and staffing company providing care since 1995.
The Company's mission is to improve the quality of life for those
it serves by providing high quality in-home caregivers. The
Company provides Alzheimer's care, companionship, physical
assistance and respite care services.
Ibex, LLC, based in Colorado Springs, CO, filed a Chapter 11
petition (Bankr. D. Colo. Case No. 17-16031) on June 29, 2017. In
the petition signed by Peter Vanderbrouk, managing member, the
Debtor disclosed $111,012 in assets and $3.44 million in
liabilities.
The Hon. Elizabeth E. Brown presides over the case.
David J. Warner, Esq., at Wadsworth Warner Conrardy, P.C., serves
as bankruptcy counsel to the Debtor. Jensen Dulaney LLC is the
Debtor's special counsel. BiggsKofford, LLC, is the accountant.
ICAGEN INC: Incurs $3.5 Million Net Loss in Second Quarter
----------------------------------------------------------
Icagen, Inc. has filed with the Securities and Exchange Commission
its Quarterly Report on Form 10-Q reporting a net loss of $3.50
million on $4.37 million of sales for the three months ended June
30, 2018, compared to a net loss of $1.91 million on $5.77 million
of sales for the three months ended June 30, 2017.
For the six months ended June 30, 2018, the Company reported a net
loss of $7.23 million on $7.45 million of sales compared to a net
loss of $2.72 million on $11.59 million of sales for the same
period during the prior year.
As of June 30, 2018, Icagen had $13 million in total assets, $27.94
million in total liabilities and a total stockholders' deficit of
$14.94 million.
"We have a history of operating losses and net losses since
inception and we have primarily funded our operations through sales
of our unregistered equity securities and cash flows generated from
government contracts and grants, settlement of lawsuits and more
recently from debt funding, commercial customers and subsidy
income. Although, we are generating funds from commercial
customers, we continue to experience losses and may need to raise
additional funds in the future to meet our working capital
requirements. To date, we have never generated sufficient cash
from operations to pay our operating expenses. We have received
$26,000,000 from Sanofi and despite the $6,000,000 we expect to
derive from Icagen-T for services provided to and operating expense
contributions to be paid by Sanofi over the next two and a half
years, we expect our expenses to increase as our operations expand
and our expenses may continue to exceed such revenue. During the
second quarter and first part of the third quarter of 2018, we
raised an additional $2,500,000 through the issuance of shares of
our Series C Preferred stock and an additional $500,000 through the
issuance of notes. As of June 30, 2018, we had not generated
sufficient additional revenue from operations to pursue our
business strategy, to respond to new competitive pressures or to
take advantage of opportunities that may arise. These factors
raised substantial doubt about our ability to continue as a going
concern. As a result, our independent registered public accounting
firm included an explanatory paragraph in its report on our
consolidated financial statements as of and for the year ended
December 31, 2017 with respect to this uncertainty. We anticipate
that our current cash and cash equivalents, including cash derived
from the Series C Preferred Stock issued will not be sufficient to
meet our operating needs for at least the next six months.
However, if we should require additional capital, we may consider
multiple alternatives, including, but not limited to, additional
equity financings, debt financings and/or funding from partnerships
or collaborations. There can be no assurance that we will be able
to complete any such transactions on acceptable terms or
otherwise," the Company stated in the regulatory filing.
A full-text copy of the Form 10-Q is available for free at:
https://is.gd/kZHRKS
About Icagen
Durham, North Carolina-based Icagen, Inc., formerly known as XRpro
Sciences, Inc. -- http://www.icagen.com/-- specializes in the
early stage of drug discovery to generate high-quality, advanced
leads in multi-year, integrated drug discovery programs. Through
both high throughput experimental and advanced computational
approaches, Icagen creates innovative solutions that leverage an
interplay of open discovery with the predictive potential of
artificial intelligence and machine learning. Icagen is applying
these approaches to its internal programs as well as toward its
collaborations with external partners within the pharmaceutical and
biotechnology industry.
Icagen reported a net loss of $6.11 million in 2017, compared to a
net loss of $5.50 million in 2016. As of Dec. 31, 2017, Icagen had
$14.63 million in total assets $23.30 million in total liabilities
and a total stockholders' deficit of $8.66 million.
The report from the Company's independent accounting firm RBSM LLP
on the consolidated financial statements for the year ended
Dec. 31, 2017, includes an explanatory paragraph stating that the
Company has incurred recurring operating losses which has resulted
in an accumulated deficit of approximately $33.8 million at Dec.
31, 2017. These conditions raise substantial doubt about the
Company's ability to continue as a going concern.
INNOVIVA INC: S&P Affirms B+ Issuer Credit Rating, Outlook Stable
-----------------------------------------------------------------
S&P Global Ratings affirmed its 'B+' long-term issuer credit rating
on Innoviva Inc.
S&P said, "At the same time, we raised the senior secured issue
credit rating to 'BB+' from 'BB'. The '1+' recovery rating reflects
expectations for 100% recovery in a payment default.
"We also affirmed the unsecured issue-level rating of 'B+' and the
subordinated issue-level rating of 'B-'. The recovery ratings are
'4' and '6' respectively. The '4' recovery rating reflects our
expectation for average recovery (30%-50%; rounded estimate 35%) in
the event of a payment default. The '6' recovery rating reflects
our expectation for negligible recovery (0%-10%; rounded estimate
0%)."
The outlook on the ratings is stable.
S&P said, "The 'B+' corporate credit rating on pharmaceutical
royalty management company Innoviva Inc. reflects its concentrated
revenue sources, limited operations, and our belief that debt
leverage could increase if Innoviva acquires more royalty assets to
diversify and sustain its business.
"Our stable outlook is based on our belief that adjusted debt
leverage could increase from current levels of about 2x due to the
long-term strategic need for new royalty streams. We also believe
that products underlying Innoviva's royalty streams will continue
to grow for the next two years and beyond, generating substantial
free cash flow and facilitating the repayment of debt. The current
rating incorporates the uncertainty of the company's growth
strategy and financial policy."
INVESTMENT GROUP: Case Summary & 15 Unsecured Creditors
-------------------------------------------------------
Debtor: Investment Group, LLC
305 & 333 S. Waterman
San Bernardino, CA 92408
Business Description: Investment Group, LLC, is a lessor of
real estate based in San Bernardino,
California.
Chapter 11 Petition Date: August 24, 2018
Court: United States Bankruptcy Court
Central District of California (Riverside)
Case No.: 18-17175
Judge: Hon. Scott C. Clarkson
Debtor's Counsel: Todd L. Turoci, Esq.
THE TUROCI FIRM
3845 Tenth Street
Riverside, CA 92501
Tel: 888-332-8362
Fax: 866-762-0618
Email: mail@theturocifirm.com
Total Assets: $262,053
Total Liabilities: $5,502,998
The petition was signed by Sam Samarah, manager.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 15 unsecured creditors is available for free
at:
http://bankrupt.com/misc/cacb18-17175.pdf
IQOR HOLDINGS: S&P Cuts Issuer Credit Rating to 'CCC', Outlook Neg
------------------------------------------------------------------
S&P Global Ratings lowered its long-term issuer credit rating on
St. Petersburg, Fla.-based iQor Holdings Inc. to 'CCC' from 'B'.
The outlook is negative.
S&P said, "At the same time, we lowered the issue rating on the
company's senior secured revolving credit facility and first-lien
term loan to 'CCC' from 'B'. The recovery rating is unchanged at
'3', indicating our expectation of meaningful (50%-70%; rounded
estimate: 60%) recovery for lenders in the event of a payment
default.
"We also lowered the issue rating on the company's senior secured
second-lien term loan to 'CC' from 'CCC+'. The recovery rating is
unchanged at '6', indicating our expectation of negligible (0%-10%;
rounded estimate: 5%) recovery for lenders in the event of a
payment default.
"The downgrade reflects our belief that iQor's liquidity could be
further pressured over the next year absent improvements in
operating performance. The second half of the calendar year is
seasonally stronger for the industry, benefiting from greater
customer activity in the holiday season, which we believe will
support the company's liquidity position over the next six months.
However, we have limited visibility into the company's future
performance and are uncertain as to how iQor will fare in 2019 as
well as the extent to which management initiatives to restructure
or exit unprofitable contracts, reduce costs, and sell non-core
assets will materialize. The company had about $50 million in cash
as of June 30, 2018 and we expect revolver borrowings will need to
remain below $17.5 million (the point at which the covenant will
spring) to avoid a covenant violation. Our base-case forecast
includes negative free operating cash flow of $0 million-$20
million over the next 12 months, which most likely would be
weighted more heavily toward the first half of 2019. We believe
that an ongoing cash burn could result in the company declaring
bankruptcy, or result in a restructuring agreement with lenders
that we would consider tantamount to default.
"The negative outlook reflects that we could lower the rating over
the next year depending on iQor's ability to preserve liquidity.
"We could downgrade iQor if its cash balance declines meaningfully
below the current level of $50 million. We believe further cash
burn would signal ongoing operational pressures and a greater
likelihood of a default. We estimate this would entail EBITDA
margins that are around 100 basis points less than we currently
expect, which could occur if the company does not stabilize
top-line pressure and limit spending.
"We could revise the outlook to stable or raise the rating if we no
longer believe there is risk of further liquidity deterioration.
This would require a track record of iQor maintaining or improving
its current liquidity position over several quarters through
positive cash generation, including the seasonally weaker first
half of the year. Alternatively, we could consider a positive
rating action if the company improves its liquidity position
through external means, such as asset sales, provided that we
expect the core business to generate positive cash flow going
forward."
IQOR US: Moody's Cuts CFR to Caa2, 1st Lien Loan Rating to Caa1
---------------------------------------------------------------
Moody's Investors Service downgraded iQor US, Inc.'s Corporate
Family Rating to Caa2 from B3 and its Probability of Default Rating
to Caa2-PD from B3-PD. Concurrently, the company's first lien
revolver due 2019 and term loan were downgraded to Caa1 from B2,
and its second lien term loan was downgraded to Caa3 from Caa2.
Moody's also assigned a Caa1 rating to the company's $50 million
revolving credit facility due 2020. The ratings outlook has been
changed to negative from stable.
The downgrade to Caa2 and negative outlook reflects iQor's
significant earnings erosion in the first half of 2018 that has
elevated leverage, as well as Moody's expectation that a rapid
turnaround in performance is unlikely while the company executes
its announced operational realignment and restructuring. The
downgrade also reflects deterioration in cash and free cash flow
that creates weak liquidity and uncertainty about iQor's ability to
fund the restructuring initiatives while servicing the debt.
Moody's has growing concerns related to the sustainability of the
company's capital structure given iQor's high debt-to-EBITDA
leverage, estimated at 8.3 times as of June 30, 2018, weak
liquidity and the risk that earnings will continue to fall over the
next 12-18 months.
iQor recently announced plans to reorganize its business regionally
to better address its customer needs and create optionality for its
sponsors and lenders for an exit without having restructure the
debt. "While the company has taken immediate steps to right-size
the cost structure and exit non-profitable contracts, Moody's
believes that there is high uncertainty surrounding the company's
ability to stabilize and grow revenue and earnings, improve
liquidity, and reduce the potential for a default, " said Moody's
AVP-analyst Oleg Markin.
Moody's took the following ratings actions on iQor US, Inc.:
--- Corporate Family Rating, downgraded to Caa2 from B3
--- Probability of Default Rating, downgraded to Caa2-PD from
B3-PD
--- $20 million (downsized from $100 million) first lien senior
secured revolving credit facility due 2019, downgraded to Caa1
(LGD3) from B2 (LGD3)
--- $50 million first lien senior secured revolving credit
facility due 2020, assigned Caa1 (LGD3)
--- $610 million first lien senior secured term loan due 2021,
downgraded to Caa1 (LGD3) from B2 (LGD3)
--- $170 million second lien senior secured term loan due 2022,
downgraded to Caa3 (LGD5) from Caa2 (LGD5)
--- Ratings outlook changed to Negative from Stable
RATINGS RATIONALE
iQor's Caa2 CFR reflects the company's operating challenges,
weakening credit metrics and Moody's expectation that liquidity
sources will remain limited over the next 12 months. Moody's
estimates that total debt-to-EBITDA (Moody's adjusted) was around
8.3 times and EBITA-to-interest expense (Moody's adjusted) below
0.5 times at June 30, 2018. Moody's expects iQor's revenues and
earnings to fall over the next 12 months and its debt-to-EBITDA
leverage to remain around mid-8.0 times range at year-end 2018 as
the company executes its strategy to reorganize its operations into
North American and International units. The North American business
includes its customer care segment and the North American product
repair services business, which will be slimmed down through the
exit from certain mobility repair contracts. Moody's is concerned
that the current capital structure is unsustainable in the absence
of a marked recovery in operating results and/or additional cash
infusion. The customer care business has positive growth prospects
as clients look to outsource such functions, but has experienced
recent softness because of volumes weakness from a large telecom
client. The electronics repair business is under greater pressure
and can experience volume fluctuations due to evolving consumer
preferences for particular brands. The company's high fixed cost
structure and the highly competitive and fragmented market segments
in which iQor operates also weaken the credit profile.
The rating gives favorable consideration to the company's global
presence and diversification of service lines, low but above
industry peers operating margin, and solid contract pipeline with
good growth prospects in the customer care services industry due to
the ongoing increase in outsourcing. Term loans that do not mature
until 2021 and 2022 provide some flexibility to execute the
operational restructuring if iQor can stabilize earnings and free
cash flow, and maintain adequate undrawn capacity under the
revolver and accounts receivable securitization to fund operations.
The ratings could be downgraded if iQor's operating performance
deteriorates further and does not begin to stabilize within the
next 12 months, liquidity deteriorates further, or if the
likelihood of a distressed exchange or other form of default
further increases.
Potential for an upgrade is limited in view of the operating
challenges, very high financial leverage and weak liquidity.
However, an upgrade could occur a material improvement in operating
performance and liquidity diminishes the risk of a debt
restructuring.
iQor US, Inc., a wholly owned operating subsidiary of iQor Holdings
Inc., is a global provider of business process outsourcing and
product support services. The company is currently reorganizing its
business around two reportable segments -- North American BPO and
International. A majority of revenues and earnings will come from
the North American segment. The company generated approximately
$1.2 billion of revenue in the last twelve months ended June 30,
2018. iQor Holdings Inc. is owned by HGGC, LLC; The Rohatyn Group;
Starr Investment Holdings, LLC; and management.
JASON INC: Moody's Hikes CFR to B3, Outlook Stable
--------------------------------------------------
Moody's Investors Service upgraded its ratings for Jason
Incorporated, including the company's Corporate Family Rating (CFR;
to B3, from Caa1) and Probability of Default Rating (to B3-PD, from
Caa1-PD). The existing B3 and Caa3 ratings for the company's first-
and second-lien senior secured debt and credit facilities have been
upgraded to B2 and Caa2, respectively, and a new B2 rating was
assigned to Jason's new revolver. The company's former SGL-3
Speculative Grade Liquidity Rating has been upgraded to SGL-2. The
ratings outlook is stable.
"Jason has performed better than Moody's anticipated with regards
to profitability, continuing to benefit from robust industrial
markets, and liquidity is good given the company's substantial cash
on the balance sheet," said Inna Bodeck, Moody's lead analyst for
the company. "We expect the company to capitalize on still
favorable industrial and capital market conditions, and its own
positive operating momentum, to refinance its debt maturities,"
added Bodeck.
Moody's took the following rating actions for Jason Incorporated:
Corporate Family Rating, upgraded to B3 from Caa1
Probability of Default Rating, upgraded to B3-PD from Caa1-PD
Speculative Grade Liquidity Rating, upgraded to SGL-2 from SGL-3
$4.29 Million Gtd Senior Secured First-Lien Revolving Credit
Facility due 2019, upgraded to B2 (LGD3) from B3 (LGD3)
$310 Million Gtd Senior Secured First-Lien Term Loan due 2021,
upgraded to B2 (LGD3) from B3 (LGD3)
$110 Million Gtd Senior Secured Second-Lien Term Loan due 2022,
upgraded to Caa2 (LGD5) from Caa3 (LGD5)
$30 Million Gtd Senior Secured First-Lien Revolving Credit Facility
due 2020, assigned B2 (LGD3)
Outlook, Remains Stable
RATINGS RATIONALE
Jason's B3 Corporate Family Rating broadly reflects its moderate
size, high leverage and exposure to cyclical end markets, as well
as challenges associated with growing its top line in the key
acoustics division (which represents approximately 28% of LTM
6/30/2018 revenues). These risks are partially mitigated by the
company's good market position across several businesses, better
than expected profitability, and good liquidity owing primarily to
a significant amount of cash on the balance sheet. Moody's expects
that Jason's profitability will continue to modestly improve,
benefiting from ongoing operational improvements, supply chain
management initiatives and pricing actions, despite persistent
topline pressures. Moody's expects leverage (5.8 times
debt-to-EBITDA for the LTM period ended 6/30/2018, incorporating
Moody's standard adjustments) to modestly improve, primarily
through debt repayment.
The stable ratings outlook reflects Moody's expectation that the
company will be able to sustain current profitability measures by
improving its cost structure, managing its raw material exposure
and imposed tariffs on some of its products, despite an anticipated
mid-single-digit decline in sales. Moreover, the stable outlook
incorporates an assumed successful near-term refinancing of the
company's existing debt.
The ratings could be upgraded if the company realizes sufficient
improvement in earnings such that debt-to-EBITDA leverage reduces
to 5.0x on a sustained basis, while good liquidity is maintained.
The ratings could be downgraded if the company's operating
performance deteriorates due to unexpected challenges in the
operating environment that result in reduced profitability and
increased leverage. A weak liquidity profile could also prompt
consideration for a prospective ratings downgrade.
The principal methodology used in these ratings was Global
Manufacturing Companies published in June 2017.
Jason Incorporated, headquartered in Milwaukee, Wisconsin, is a
diversified manufacturing company serving industrial, auto and
other industries. Its products include finishing (industrial
brushes, buffing wheels and compounds), seating (static and
suspension seating for motorcycle, construction, agricultural, lawn
and turf-care equipment), acoustics (fiber-based acoustical
insulation products for the auto industry) and components (metal,
rail safety and other). Revenue for the twelve months ended June
30, 2018 was approximately $637 million.
JC PENNEY: Bank Debt Trades at 5% Off
-------------------------------------
Participations in a syndicated loan under which JC Penney
Corporation is a borrower traded in the secondary market at 94.56
cents-on-the-dollar during the week ended Friday, August 17, 2018,
according to data compiled by LSTA/Thomson Reuters MTM Pricing.
This represents a decrease of 1.75 percentage points from the
previous week. JC Penney pays 425 basis points above LIBOR to
borrow under the $1.688 billion facility. The bank loan matures on
June 23, 2023. Moody's rates the loan 'Ba3' and Standard & Poor's
gave a 'B+' rating to the loan. The loan is one of the biggest
gainers and losers among 247 widely quoted syndicated loans with
five or more bids in secondary trading for the week ended Friday,
August 17.
KINGS AUTO: Emergency Motion to Use Cash Collateral Granted
-----------------------------------------------------------
By virtue of the order issued by Bankruptcy Judge Robert D. Berger
of the District of Kansas, the emergency motion to use cash
collateral of the Kings Auto Service, Inc., was granted on an
interim basis, until Sept. 30, 2018. The continued use of cash
collateral motion is continued to Sept. 20, 2018 at 1:30 p.m. at
500 State Avenue, Room 151, Kansas City, KS.
A full-text copy of the Order is available at:
http://bankrupt.com/misc/ksb18-21136_Ord_Cash_Kings_Auto.pdf
About Kings Auto Service
Kings Auto Services, Inc., sought protection under Chapter 11 of
the Bankruptcy Code (Bankr. D. Kan. Case No. 18-21136) on June 4,
2018. In the petition signed by Timothy S. King, president, the
Debtor estimated assets of less than $50,000 and liabilities of
less than $50,000. The Debtor tapped Dvorak Law, Chartered, as its
legal counsel.
LDJ ENTERPRISE: Oct. 23 Hearing on Amended Disclosure Statement
---------------------------------------------------------------
According to a notice, Bankruptcy Judge Jason D. Woodard will
convene a hearing on Oct. 23, 2018 at 10:00 a.m. to consider and
act upon LDJ Enterprise, LLC's amended disclosure statement.
Objections to the disclosure statement are due on Sept. 17, 2018.
About LDJ Enterprise
Headquartered in Tupelo, Mississippi, LDJ Enterprise, LLC, filed
for Chapter 11 bankruptcy protection (Bankr. N.D. Miss. Case No.
17-11088) on March 23, 2017, with estimated assets and liabilities
of less than $50,000. Lisa Pulliam, its administrator, signed the
petition. The Debtor tapped Dalton Middleton, Esq., at Middleton &
Tinsley Law Firm, PLLC, to serve as legal counsel in connection
with its Chapter 11 case.
LUKE'S LOCKER: Court Approves Disclosure Statement
--------------------------------------------------
Bankruptcy Judge Brenda T. Rhoades issued an order approving Luke's
Locker Incorporated's disclosure statement in support of its
amended plan of reorganization.
A hearing on the confirmation of the Plan will be held before the
Honorable Brenda
T. Rhoades, United States Bankruptcy Judge, in the United States
Bankruptcy Court for the Eastern District of Texas, Sherman
Division on Sept. 25, 2018, at 9:30 a.m., Central Time.
Sept. 17, 2018 at 12:00 p.m., Central time is fixed as the last day
for filing with the Court written objections to the confirmation of
the Plan.
The deadline for receipt of Ballots evidencing the votes accepting
or rejecting the Plan will be Sept. 19, 2018, at 12:00 p.m.,
Central time.
The Debtor amended its Plan to provide for the sale of all of the
Debtor's assets to the Purchaser, Locker Holdings, LLC, who is
assuming certain of the obligations owed by Luke's Locker and will
make all of the payments provided by the Plan. Unsecured Claims
and equity interests will not receive any distribution under the
Plan. Post-Effective Date Debtor will be wound up in accordance
with the Plan.
A redlined version of the Amended Disclosure Statement dated Aug.
13, 2018, from PacerMonitor.com is available at
https://tinyurl.com/yb9w2bhp at no charge.
A redlined version of the Amended Chapter 11 Plan dated Aug. 8,
2018, from PacerMonitor.com is available at
https://tinyurl.com/y7emh4pz at no charge.
About Luke's Locker Inc.
Luke's Locker Incorporated, owner of Luke's Locker fitness and
running stores in Texas, and its affiliates sought Chapter 11
protection (Bankr. E.D. Tex. Lead Case No. 17-40126) on Jan. 24,
2017. In the petitions signed by Matthew Lucas, president and CEO,
Luke's Locker estimated $1 million to $10 million in assets and
liabilities.
The cases are assigned to Judge Brenda T. Rhoades.
Melissa S. Hayward, Esq., at Franklin Hayward LLP, in Dallas,
serves as the Debtors' counsel. Joseph Sullivan serves as chief
restructuring officer. The Debtor tapped Rosen Systems, Inc., to
sell surplus assets by auction.
No trustee or examiner has been appointed in the Debtors' cases.
MADISON-LARAMIE: Wants Plan Filing Deadline Extended to Sept. 5
---------------------------------------------------------------
According to a notice, Madison-Laramie Self Storage, LLC will file
a second motion to further extend their time to file a plan and
disclosure statement and to extend the periods in which the Debtor
holds the exclusive right to file a plan and disclosures and to
obtain acceptances of the plan.
By this motion, the Debtor requests entry of an order (a)
continuing the deadline for filing a plan and disclosure statement
to Sept. 5, 2018; (b) extending the date for Debtor's exclusive
period for filing its plan and disclosure statement to Sept. 5,
2018 and (c) extending the exclusive period to obtain acceptances
to Nov. 7, 2018.
The Debtor has used the previous extension to reach out to Cook
County Assessor's Office to negotiate a payment plan on the
outstanding taxes. The Debtor has drafted a Plan and Disclosure
Statement and requires additional time to finalize the documents.
Additionally, the Debtor has filed a Motion to set a bar date which
will aid in finalizing the Plan. No creditors will be prejudiced by
the requested extension. As such, cause exists to grant the
Debtor’s request to extend the statutory exclusive periods for
the Debtor to file a Plan in this case.
Madison-Laramie Self Storage, L.L.C., sought Chapter 11 protection
(Bankr. N.D. Ill. Case No. 18-01228) on Jan. 16, 2018, disclosing
less than $1 million in both assets and liabilities. The Debtor is
represented by Chuhak & Tecson, P.C. as its bankruptcy counsel.
MCGRAW-HILL GLOBAL: Bank Debt Trades at 4% Off
----------------------------------------------
Participations in a syndicated loan under which McGraw-Hill Global
Education Holdings LLC is a borrower traded in the secondary market
at 96.30 cents-on-the-dollar during the week ended Friday, August
17, 2018, according to data compiled by LSTA/Thomson Reuters MTM
Pricing. This represents a decrease of 1.87 percentage points from
the previous week. McGraw-Hill Global pays 400 basis points above
LIBOR to borrow under the $1.575 billion facility. The bank loan
matures on May 2, 2022. Moody's rates the loan 'B1' and Standard &
Poor's gave a 'B+' rating to the loan. The loan is one of the
biggest gainers and losers among 247 widely quoted syndicated loans
with five or more bids in secondary trading for the week ended
Friday, August 17.
METRO PALISADES: Bid to Use Cash Collateral Denied
--------------------------------------------------
Following a hearing on Aug. 14, 2018, Judge Robert Bardwill of the
U.S. Bankruptcy Court of the Eastern District of California entered
an order denying Metro Palisades, LLC's amended motion to use cash
collateral. The order was entered after "findings of fact and/or
conclusions of law having been stated orally on the record and good
cause appearing."
A full-text copy of the Order is available at:
http://bankrupt.com/misc/caeb18-23396_69_Ord.pdf
About Metro Palisades
Metro Palisades, LLC, is a privately held company that owns in fee
simple a real property located at 10352 Palisades, Drive Truckee,
CA 96161.
Metro Palisades filed a Chapter 11 petition (Bankr. E.D. Cal. Case
No. 18-23396) on May 31, 2018, disclosing liabilities of $2
million. The Hon. Robert S. Bardwil is the case judge. Richard A.
Hall, Esq., at BOTTOMLINE LAWYERS, in Auburn, California, serves as
the Debtor's counsel.
METROPOLITAN NYC: Sept. 21 Hearing on 2nd Amended Plan Outline
--------------------------------------------------------------
According to a notice, the U.S. Bankruptcy Court for the Eastern
District of New York will convene a hearing on Sept. 21, 2018 at
10:00 a.m. (prevailing Eastern Time) to determine whether
Metropolitan NYC Holdings, Corp.'s second amended disclosure
statement with respect to its second amended plan of
reorganization, dated August 17, 2018, contains adequate
information.
Objections, if any, to the disclosure statement must be in writing
and filed and served no later than Sept. 14, 2018 at 12:00 p.m. EST
(Prevailing Time).
The second amended plan provides that payments made under the Plan
for Class 1 and Class 2 will be paid from refinancing obtained by
the Debtor within the nine months after the Effective Date and the
Debtor's future rents. Payment of other claims, including Class 3
and administrative expenses will be paid from the Debtor's
principal, Gene Burshtein, future rents and cash on hand.
If necessary, including at the end of nine months, the Debtor will
sell the New York Property or alternatively, if Burshtein chooses
to retain this Property, Burshtein will sell or refinance another
property or properties he owns that will be sufficient to finance
this Property.
A full-text copy of the Second Amended Disclosure Statement is
available at:
http://bankrupt.com/misc/nyeb1-17-40263-81.pdf
About Metropolitan NYC Holdings
Metropolitan NYC Holdings, Corp. sought protection under Chapter 11
of the Bankruptcy Code (Bankr. E.D.N.Y. Case No. 17-40263) on
January 23, 2017.
In its petition signed by Gene Burshtein, owner, the Debtor
estimated assets of less than $50,000 and liabilities of less than
$500,000.
Judge Elizabeth S. Stong presides over the case. The Debtor hired
the Law Office of Gregory Messer as its legal counsel.
No trustee, examiner or official committee of unsecured creditors
has been appointed in the case.
MIDAS INTERMEDIATE: Moody's Places B2 CFR on Review for Downgrade
-----------------------------------------------------------------
Moody's Investors Service placed all ratings of Midas Intermediate
Holdco II, LLC's on review for downgrade, including its B2
Corporate Family Rating and B2-PD Probability of Default Rating.
"The review for downgrade stems from the company's negative
operating trends driven by challenges in some key markets, and the
resulting continued weakness in its credit profile, with excessive
leverage and weak interest coverage," stated Moody's Vice President
Charlie O'Shea.
On Review for Downgrade:
Issuer: Midas Intermediate Holdco II, LLC
Probability of Default Rating, Placed on Review for Downgrade,
currently B2-PD
Corporate Family Rating, Placed on Review for Downgrade, currently
B2
Senior Secured Term Loans, Placed on Review for Downgrade,
currently Ba3 (LGD2)
Senior Secured Revolving Credit Facility, Placed on Review
Downgrade, currently Ba3 (LGD2)
Senior Unsecured Regular Bond/Debenture, Placed on Review for
Downgrade, currently Caa1 (LGD5)
Outlook Actions:
Issuer: Midas Intermediate Holdco II, LLC
Outlook, Changed To Rating Under Review From Stable
RATINGS RATIONALE
The review for downgrade is based upon the company's high leverage
on a debt/EBITDA basis at 8.2x and weak coverage on a EBIT/Interest
basis at 0.9x for the twelve months period ending June 2018, which
are above Moody's downgrade triggers. Service Kings' operating
performance has been below expectations over the last twelve
months, with the company reporting negative same store sales and
margin erosion. While the company's recent cost saving and
operating initiatives to right size its corporate overhead and
increase shop-level efficiencies could somewhat offset the
increased labor pressures and drive increase claim volume, a
meaningful improvement in credit metrics over the near term remains
uncertain.
Moody's review of Service King will primarily consider: (1)
management's strategic plan to improve the operating performance of
the company; and (2) financial policies.
Headquartered in Richardson, Texas, Midas Intermediate Holdco II,
LLC is a leading provider of vehicle body repair services with
annual revenue of around $1.2 billion. The company operates under
the Service King brand name and had 339 locations in 24 states as
of June 30, 2018.
MOHEGAN TRIBAL: Bank Debt Trades at 7% Off
------------------------------------------
Participations in a syndicated loan under which Mohegan Tribal
Gaming is a borrower traded in the secondary market at 93.29
cents-on-the-dollar during the week ended Friday, August 17, 2018,
according to data compiled by LSTA/Thomson Reuters MTM Pricing.
This represents a decrease of 0.75 percentage points from the
previous week. Mohegan Tribal pays 400 basis points above LIBOR to
borrow under the $783 million facility. The bank loan matures on
October 14, 2023. Moody's rates the loan 'B1' and Standard & Poor's
gave a 'B-' rating to the loan. The loan is one of the biggest
gainers and losers among 247 widely quoted syndicated loans with
five or more bids in secondary trading for the week ended Friday,
August 17.
MONTREIGN RESORT: Bank Debt Trades at 10% Off
---------------------------------------------
Participations in a syndicated loan under which Montreign Resort
Casino is a borrower traded in the secondary market at 90.17
cents-on-the-dollar during the week ended Friday, August 17, 2018,
according to data compiled by LSTA/Thomson Reuters MTM Pricing.
This represents a decrease of 1.10 percentage points from the
previous week. Montreign Resort pays 825 basis points above LIBOR
to borrow under the $415 million facility. The bank loan matures on
January 24, 2023. Moody's rates the loan 'Caa1' and Standard &
Poor's gave a 'CCC+' rating to the loan. The loan is one of the
biggest gainers and losers among 247 widely quoted syndicated loans
with five or more bids in secondary trading for the week ended
Friday, August 17.
MORGAN AIR: Case Summary & 20 Largest Unsecured Creditors
---------------------------------------------------------
Debtor: Morgan Air Conditioning, LLC
14807 N. 12th Street
Lutz, FL 33549
Business Description: Morgan Air Conditioning, LLC provides air
conditioning repair service in Florida.
Chapter 11 Petition Date: August 23, 2018
Court: United States Bankruptcy Court
Middle District of Florida (Tampa)
Case No.: 18-07081
Debtor's Counsel: Buddy D. Ford, Esq.
BUDDY D. FORD, P.A.
9301 West Hillsborough Avenue
Tampa, FL 33615-3008
Tel: 813-877-4669
Fax: 813-877-5543
Email: Buddy@TampaEsq.com
All@tampaesq.com
Estimated Assets: $0 to $50,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Brainard Morgan, manager.
The Debtor failed to include in the petition a list of its 20
largest unsecured creditors.
A full-text copy of the petition is available for free at:
http://bankrupt.com/misc/flmb18-07081.pdf
MOULTON PROPERTIES: CAP Objects to Combined Plan and Disclosures
----------------------------------------------------------------
Escambia County Head Start, Community Action Program Committee
Inc., filed an objection to Moulton Properties Holdings, LLC's
combined second amended liquidating plan and amended disclosure
statement and to the confirmation of the plan.
CAP objects to the Plan and Disclosure Statement and to
confirmation of the Plan and Disclosure Statement on the ground
that the Plan and Disclosure Statement fails to contain adequate
information for CAP and other holders of claims and interests to
make an informed decision in accordance with Section 1125 of the
Bankruptcy Code regarding whether to accept or reject the Debtor's
proposed plan, for the following reasons:
a. The Plan and Disclosure Statement does not disclose or
provide for the proposed treatment of the Purchase Right.
b. The Plan and Disclosure Statement does not disclose or
provide for the proposed treatment of the Federal Interest in the
Lillian Property.
c. The Plan and Disclosure Statement does not permit CAP the
opportunity to exercise its Purchase Right or otherwise incorporate
the Purchase Right into the sale procedure for the Lillian
Property.
d. The Plan and Disclosure Statement is confusing, ambiguous and
unclear as to whether the Lease has been or is to be assumed or
rejected, in that Section 8.4.1 of the Plan and Disclosure
Statement states that the Debtor "hereby assumes" all commercial
leases currently in effect for transfer to the buyers of the
Palafox and Lillian Properties (which would include the Lease), but
Section 8.4.2 states that the Debtor assumes the Lease for the sole
purpose of assignment to the successful bidder at the Auction
Sales, to the extent that the successful bidder desires to receive
an assignment of the Lease, but if the successful bidder does not
want to receive and assignment of the Lease, then the Lease shall
be deemed rejected unless specifically assumed by separate filed
motion.
e. The Plan and Disclosure Statement does not provide that the
Lillian Property will be sold subject to the Lease. The Lillian
Property cannot be sold free and clear of the Lease because none of
the five prerequisites specified in Section 363(f) of the
Bankruptcy Code for a sale free and clear of the Lease exists.
Clearly, prerequisites (2), (3) and (4) of Section 363(f) do not
exist. Further, prerequisites (1) and (5) of Section 363(f) do not
exist because the Lease, being prior in time to all mortgages on
the Lillian Property, is superior to all such mortgages and
therefore cannot be foreclosed out by a foreclosure of any such
mortgage.
A copy of CAP's Objection is available at:
http://bankrupt.com/misc/flnb15-31131-242.pdf
The Troubled Company Reporter previously reported that general
unsecured creditors under the plan will receive payment in the
amount of $2,000 under the company's latest Chapter 11 plan.
The plan proposes an auction sale of the company's real properties,
which include (i) 1.4377 acres of developed property located at
1300 N. Palafox Street, Pensacola, Florida; (ii) 2.13 acres of
undeveloped real property located at the intersection of Iaca
Avenue and Gulf Beach Highway in Escambia County, Florida; and
(iii) 0.7250 acres of developed real property located at 5400
Lillian Highway, Pensacola, Florida.
A copy of the second amended plan is available for free at:
http://bankrupt.com/misc/flnb15-31131-219.pdf
Attorneys for Escambia County Head Start, Community Action Program
Committee Inc.:
JOHN P. DANIEL
Florida Bar No. 784291
jpd@beggslane.com
JOHN H. ADAMS
Florida Bar No. 13208
jha@beggslane.com
JOHN R. ZOESCH III
Florida Bar No. 45257
jrz@beggslane.com
501 Commendencia Street
Pensacola, Florida 32502
Telephone: (850) 432-2451
Facsimile: (850) 469-3331
About Moulton Properties Holdings
Moulton Properties Holdings, LLC, is a Florida-based limited
liability company organized in 2014 that manages and develops real
property. The Debtor is 100% owned by Moulton Properties Inc.,
which is owned by 40% by James Moulton, 40% by Robert Moulton, and
20% by Strategica Capital Associates, Inc. James Moulton passed
away in August 2016. Mr. Moulton's surviving daughter Mary Moulton
is the authorized corporate representative of Moulton Properties
Inc.
Moulton Properties filed a Chapter 11 petition (Bankr. N.D. Fla.
Case No. 15-31131) on Nov. 16, 2015. Mary E. Moulton, manager,
signed the petition. The Debtor estimated assets and liabilities
at $1 million to $10 million at the time of the filing.
Steven L. Beiley, Esq., and Samuel J. Capuano, Esq., at Aaronson
Schantz Beiley P.A., serve as the Debtor's bankruptcy counsel.
MOUNTAIN CRANE SERVICE: Oct. 23 Plan Confirmation Hearing Set
-------------------------------------------------------------
Bankruptcy Judge Joel T. Marker issued an order approving Mountain
Crane Service, LLC's disclosure statement with respect to its
chapter 11 plan of reorganization.
The deadline for persons and entities to return their Ballots
accepting or rejecting the Plan will be 4:00 p.m. Mountain Time on
Sept. 24, 2018.
The hearing to consider confirmation of the Plan is scheduled for
Oct. 23, 2018 at 10:00 a.m., at the United States Bankruptcy Court
at 350 South Main Street, Room 341, Salt Lake City, Utah 84101.
Any objection to confirmation of the Plan must be filed no later
than 4:00 p.m. Mountain Time on Sept. 24, 2018.
General Unsecured Claims, classified in Class 2, will be paid pro
rata from the $8,000,000 Distribution Fund. The prior filed Plan
provided for a $9,000,000 Distribution Fund. The Debtor will fund
a total Distribution Fund Amount of $8,000,000 over 10 years (or an
average of $200,000 per Quarter over 40 Quarters). Deposits into
the Distribution Account will be made Quarterly in the amount of
$200,000. The funds in the Distribution Account will be paid,
first, to the holders of Allowed Claims having greater priority in
distribution.
Specifically, the holders of Allowed Class 2 Claims will not
receive distributions until the holders of claims with higher
priority have been paid or reserved in full. Once the holders of
Claims with greater priority in right of payment have been
satisfied, the holders of Allowed Class 2 Claims will be paid, pro
rata, their share of the funds on deposit in the Distribution
Account on each of the Distribution Dates.
The projections estimate that the holders of Allowed Class 2 Claims
may receive total repayment as high as 73% over the ten-year Plan
Period. It is not anticipated that nonpriority unsecured claims
will receive full repayment under any circumstances.
The Debtor and J & S Equipment Leasing, LLC, also entered into an
agreement, which resulted to the decrease of the Distribution Fund
from $9,000,000 to $8,000,000. J&S formerly owned five cranes,
which J&S leased to the Debtor. In or about December 2013, J&S
sold the Cranes to the Debtor. Pursuant to that sale, the Debtor
was required to pay J&S 10 annual installments of $277,000, and J&S
incurred the obligation to pay the Debtor 10 annual installments of
$231,169.15. Prior to the filing of the July 5 Plan, J&S is
unable/unwilling to pay the Note Receivable. So the Debtor
decreased the Distribution Fund amount.
The Debtor, the Official Committee of Unsecured Creditors, and
Hinckley's Inc., d/b/a Hincklease, entered into a compromise
wherein the Debtor will make monthly adequate protection payments
to Hinckley's in the amount of $3,765.59.
A copy of the Disclosure Statement dated Aug. 13, 2018, from
PacerMonitor.com is available at https://tinyurl.com/ycrghoay at no
charge.
A copy of the Disclosure Statement dated Aug. 20, 2018, from
PacerMonitor.com is available at https://tinyurl.com/ya9swlof at no
charge.
Attorneys for Hinckley's, Inc.:
Jeff Tuttle, Esq.
SNELL & WILMER, L.L.P.
Gateway Tower West
15 West South Temple, Suite 1200
Salt Lake City, UT 84101-1547
Tel: 801.257.1960
Email: jtuttle@swlaw.com
About Mountain Crane Service
Mountain Crane Service, LLC -- https://www.mountaincrane.com/ --
specializes in refinery turnarounds and has a fleet comprised of
more than 100 cranes, and hundreds of other pieces of equipment
dedicated to refineries in Utah, Montana, and Wyoming. It is
located in Salt Lake City, Utah, with satellite offices and wind
maintenance service locations in Montana, Nevada, Washington,
Idaho, Wyoming, Iowa, Texas and Michigan.
Mountain Crane Service sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. D. Utah Case No. 18-20225) on Jan. 12,
2018. In the petition signed by Paul Belcher, managing member, the
Debtor estimated assets and liabilities of $50 million to $100
million.
Judge Joel T. Marker presides over the case.
The Debtor hired Cohne Kinghorn, P.C., as its bankruptcy counsel;
and Rocky Mountain Advisory, LLC, as its accountant and financial
advisor. It also hired Richards Brandt Miller Nelson PC, Brian C.
Webber PLLC, and GC Associates Law as special counsel.
The Debtor also hired Paul P. Burghardt and the law firm of GC
Associates Law as special bankruptcy counsel; Dan Anderson and
Sterling Appraisals & Machinery, Ltd as appraisers and valuation
consultants; and Calaway Capital Resources, Inc. as the Debtor's
consultant regarding (i) interest rates and terms for loans on
cranes and other heavy equipment; (ii) collateral lifespans for
such loans; and (iii) interest rates and repayment terms for "line
of credit" loans in the construction industry.
The U.S. Trustee for Region 19 appointed an official committee of
unsecured creditors on Jan. 25, 2017. The Committee retained
Archer & Greiner, P.C., as its legal counsel.
MULTIMEDIA PLATFORMS: Sept. 26 Hearing on Disclosure Statement
--------------------------------------------------------------
Bankruptcy Judge Raymond B. Ray will convene a hearing on Sept. 26,
2018 at 10:00 a.m. to consider approval of Multimedia Platforms
Inc.'s disclosure statement referring to its chapter 11 plan.
The last day for filing and serving objections to the Disclosure
Statement is Sept. 19, 2018.
About Multimedia Platforms Worldwide
Multimedia Platforms, Inc. (OTCQB: MMPW) is a publicly traded
multiplatform publishing and technology company that creates,
curates, aggregates and distributes compelling, advertiser-friendly
content to the LGBT community. MPI was created following the
merger between Sports Media Entertainment Corp., a Nevada
corporation, and Multimedia Platforms, LLC, a Florida limited
liability company, on Jan. 29, 2015.
MPI currently produces 5 iconic print brands: Florida Agenda,
Frontiers Media, WiRld City Guides, Next (New York), and Next
(South Florida). The MPI brands currently represent 7.5 million
readers and 4+ million online visitors annually, and represents
three of America's most populous LGBT markets: California, New York
and Florida.
Multimedia Platforms Worldwide, Inc., Multimedia Platforms, Inc.
and New Frontiers Media Holdings, LLC, filed for Chapter 11
protection (Bankr. S.D. Fla. Lead Case No. 16-23603) on Oct. 4,
2016. The petitions were signed by Bobby Blair, CEO. The cases
are assigned to the Judge Raymond B. Ray. At the time of filing,
MPW estimated assets at $0 to $50,000 and liabilities at $1 million
to $10 million.
The Debtors are represented by Michael D. Seese, at Seese, P.A.
An Official Committee of Unsecured Creditors has not yet been
appointed in the Chapter 11 case.
MUSCLEPHARM CORP: Lawsuit Seeks Appointment of Receiver
-------------------------------------------------------
White Winston Select Asset Fund Series Fund MP-18, LLC and White
Winston Select Asset Funds, LLC filed on Aug. 21, 2018, a Verified
Complaint and Petition to Appoint Receiver against MusclePharm
Corporation and certain of its affiliates in the First Judicial
District Court of the State of Nevada in and for Carson City. The
Lawsuit names MusclePharm Corporation, Ryan Drexler, Brian Casutto,
William Bush, John Desmond, Does 1-10, Roes 1-10 as defendants.
The Plaintiffs seek injunctive relief and/or damages based on
certain of the Defendants' alleged mismanagement of MusclePharm,
including as a result of their breaches of fiduciary duty stemming
from Ryan Drexler's entrenchment in MusclePharm's management, as
well as MusclePharm's related party transactions with Mr. Drexler
and the unlawful distributions being made to him as a result of
those transactions.
Also on Aug. 21, 2018, the Plaintiffs filed an Ex Parte Application
for Temporary Restraining Order and Motion for Preliminary
Injunction against the Defendants in the Court. The Application
sought to enjoin: (1) Mr. Drexler from converting certain debt he
holds against MusclePharm into shares of MusclePharm's common stock
in order to become its majority stockholder; and/or (2) MusclePharm
and its Board of Directors from issuing such conversion shares to
Mr. Drexler.
On Aug. 23, 2018, the Court granted a Temporary Restraining Order
enjoining the Defendants and any person acting in concert or
participation with them from effecting the exercise of the
conversion rights set forth in a certain promissory note issued by
the Issuer to Ryan Drexler, dated Nov. 8, 2017, or from issuing any
stock of MusclePharm to Mr. Drexler with respect to any attempt by
Mr. Drexler to exercise the aforementioned conversion rights.
The Series Fund is a MusclePharm stockholder, holding 2,927,677
shares of MusclePharm stock. 1,463,839 of the 2,927,677 shares of
MusclePharm stock are beneficially owned by Amerop Holdings, Inc.
White Winston is a member of Series A and Series B of the Series
Fund; the manager of Series A and Series B of the Series Fund; and
a beneficial owner of the 2,927,677 shares of MusclePharm stock
held by the Series Fund.
Attorneys for Plaintiffs:
Abran E. Vigil, Esq.
Maria A. Gall, Esq.
Kyle E. Ewing, Esq.
BALLARD SPAHR LLP
1980 Festival Plaza Drive, Suite 900
Las Vegas, Nevada 89138
Tel: (702) 471-7000
Fax: (702) 471-7070
Email: vigila@ballardspahr.com
gallm@ballardspahr.com
ewingk@ballardspahr.com
- and -
Severin A. Carlson, Esq.
Tara C. Zimmerman, Esq.
KAEMPFER CROWELL
50 West Liberty St., Suite 700
Reno, Nevada 89501
Tel: (775) 852-3900
Fax: (775) 327-2011
Email: scarlson@kcnvlaw.com
tzimmerman@kcnvlaw.com
A full-text copy of the Schedule 13D/A filed with the Securities
and Exchange Commission its available for free at:
https://is.gd/nw27Jg
About MusclePharm
Headquartered in Denver, Colorado, MusclePharm Corporation
(OTCQB:MSLP) -- http://www.muslepharm.com/-- develops,
manufactures, markets and distributes branded nutritional
supplements. Its portfolio of recognized brands includes
MusclePharm Sport Series, Essential Series and FitMiss, as well as
Natural Series, which was launched in 2017. These products are
available in more than 100 countries worldwide. MusclePharm is an
innovator in the sports nutrition industry with clinically proven
supplements that are developed through a six-stage research process
utilizing the expertise of leading nutritional scientists,
physicians and universities.
MusclePharm incurred a net loss of $10.97 million in 2017 compared
to a net loss of $3.47 million in 2016. As of June 30, 2018, the
Company had $30.39 million in total assets, $46.01 million in total
liabilities and a total stockholders' deficit of $15.61 million.
NATIONAL ORTHOPEDICS: Sept. 5 Confirmation Hearing
--------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of Florida has
approved the disclosure statement explaining National Orthopedics
and Neurosurgery, P.A., f/k/a Jeffrey L. Kugler, M.D. P.A.'s
Chapter 11 plan and scheduled the confirmation hearing for
September 5, 2018 at 2:00 p.m.
Objections to Confirmation must be filed on or before Aug. 31. The
deadline for casting ballots accepting or rejecting the Plan is
Aug. 29.
About National Orthopedics
National Orthopedics and Neurosurgery, P.A., f/k/a Jeffrey L.
Kugler, M.D. P.A. -- http://nationalorthoandneuro.com/-- offers
treatment options for orthopedic injuries. With locations in Lake
Worth and Royal Palm Beach, Florida, the Company is helping
patients from all over the Southeast.
National Orthopedics and Neurosurgery filed a Chapter 11 petition
(Bankr. S.D. Fla. Case No. 18-11757) on Feb. 15, 2018, disclosing
$1.02 million assets and $1.86 million debt. The petition was
signed by Jeffrey L. Kugler, director. The case is assigned to
Judge Erik P. Kimball. The Debtor is represented by Robert C.
Furr, Esq., at Furr & Cohen.
NEIMAN MARCUS: Bank Debt Trades at 8% Off
-----------------------------------------
Participations in a syndicated loan under which Neiman Marcus Group
Incorporated is a borrower traded in the secondary market at 92.19
cents-on-the-dollar during the week ended Friday, August 17, 2018,
according to data compiled by LSTA/Thomson Reuters MTM Pricing.
This represents an increase of 2.19 percentage points from the
previous week. Neiman Marcus pays 325 basis points above LIBOR to
borrow under the $2.942 billion facility. The bank loan matures on
October 25, 2020. Moody's rates the loan 'Caa1' and Standard &
Poor's gave a 'CCC' rating to the loan. The loan is one of the
biggest gainers and losers among 247 widely quoted syndicated loans
with five or more bids in secondary trading for the week ended
Friday, August 17.
NEW GOLD: Moody's Cuts CFR to B3 & Alters Outlook to Negative
-------------------------------------------------------------
Moody's Investors Service downgraded New Gold Inc.'s Corporate
Family rating to B3 from B2, Probability of Default Rating to B3-PD
from B2-PD and senior unsecured note ratings to Caa1 from B3. New
Gold's Speculative Grade Liquidity Rating has been downgraded to
SGL-4 from SGL-3. The rating outlook has been changed to negative
from stable.
"The downgrade of New Gold's rating reflects its expectation of
negative free cash flow through 2019, continued execution risk to
get Rainy River to nameplate capacity and potential refinancing
challenges in 2020 should the company see further challenges at the
mine", said Jamie Koutsoukis, Moody's Vice-President, Senior
Analyst.
Downgrades:
Issuer: New Gold Inc.
Probability of Default Rating, Downgraded to B3-PD from B2-PD
Corporate Family Rating, Downgraded to B3 from B2
Speculative Grade Liquidity Rating, Downgraded to SGL-4 from SGL-3
Senior Unsecured Regular Bond/Debenture, Downgraded to Caa1 (LGD4)
from B3 (LGD4)
Outlook Actions:
Issuer: New Gold Inc.
Outlook, Changed to Negative From Stable
RATINGS RATIONALE
New Gold (B3 CFR) is constrained by continuing operational
challenges at its new Rainy River mine, which will likely now drive
negative free cash flow through 2019, together with limited mine
diversity, a high likelihood the company will breach its financial
covenants over the coming 12 months, and exposure to the volatile
gold and copper prices. The ramp up of Rainy River has
underperformed, with milling rate below nameplate capacity, lower
grades and costs coming in above original expectations. The rating
incorporates execution risk to the company's Rainy River plan of
achieving ore processing throughput of 24,000 tonnes/day (16,500
tonnes/day in Q2/18) and gold production above 300 koz/year
(210-250 koz expected in 2018). The company benefits from its
operations being located in favorable mining jurisdictions (Canada,
United States and Mexico) and long mine lives of over 10 years at
New Afton and Rainy River, which account for over 65% of current
production.
New Gold has weak liquidity (SGL-4), with sources of $272 million
(cash of $170 million and $103 million of revolver availability at
Q2/18) against expected negative free cash flow of $90 million over
the next 12 months. New Gold's credit facility contains financial
covenants that includes a maximum leverage test of 3.5X net debt to
adjusted EBITDA. Moody's believes that New Gold is at high risk of
breaching this leverage covenant over the next 12 months, and
Moody's anticipates net debt to EBITDA of 3.9x at year end 2019.
The negative outlook reflects its expectation that New Gold will
need to address its liquidity, primarily its ability to comply with
its financial covenants and the August 2020 maturity of its credit
facility during a period when it is expected to continue consuming
cash. It also incorporates the execution risk New Gold continues to
face to ramp up production at Rainy River above 300,000 ounces per
year.
The rating could be upgraded if New Gold is able to increase
production at Rainy River above 300,000 oz/year, is able to
generate positive free cash flow, and adjusted debt to EBITDA is
maintained below 4x (3.4x at Q2/18). An upgrade would also require
that the company's ability to remain in compliance with its
covenants strengthens and refinancing risk around the August 2020
maturity of its credit facility is addressed.
The rating would be downgraded if New Gold's liquidity position
worsens, most likely caused by lower production and higher costs or
New Gold is unable to improve operations at Rainy River whereby the
mine is cash flow generative.
New Gold Inc. is a gold producer headquartered in Vancouver,
British Columbia, with four mines: Mesquite (California), Cerro San
Pedro (central Mexico), and New Afton (British Columbia, Canada)
and Rainy River (Ontario, Canada). Revenue for the twelve months
ended December 31, 2017 was $604 million with 431 thousand ounces
of gold and 104 million pounds of copper produced.
The principal methodology used in these ratings was Mining Industry
published in April 2018.
New Gold Inc. is a gold producer Headquartered in Vancouver,
British Columbia, with four mines: Mesquite, California, USA, Cerro
San Pedro, central Mexico, and New Afton and Rainy River, British
Columbia, Canada. Revenue for the twelve months ended December 31,
2017 was $604 million with 431 thousand ounces of gold and 104
million pounds of copper produced.
PEORIA REGIONAL: Approval Hearing on Plan Outline Set for Sept. 20
------------------------------------------------------------------
Bankruptcy Judge Scott H. Gan is set to hold a hearing on Sept. 20,
2018, at 2:00 p.m. to consider the approval of Peoria Regional
Medical Center, LLC's disclosure statement in connection with its
chapter 11 plan.
Written objections to the disclosure statement must be filed by
Sept. 13, 2018.
The Troubled Company Reporter previously reported that the Debtor
will sell its Arizona property to ADB Investments, LLC to fund plan
payments.
A full-text copy of the Disclosure Statement is available at:
http://bankrupt.com/misc/azb17-11742-62.pdf
About Peoria Regional Medical Center
Headquartered in Mesa, Arizona, Peoria Regional Medical Center,
LLC, aka Peoria Hospital 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.
Peoria Regional Medical Center filed for Chapter 11 bankruptcy
protection (Bankr. D. Ariz. Case No. 17-11742) on Oct. 4, 2017,
estimating its assets at up to $50,000 and its liabilities at
between $1 million and $10 million. The petition was signed by
Timothy A. Johns, manager.
Judge Scott H. Gan presides over the case.
Heather Ann Macre, Esq., at Aiken Schenk Hawkins & Ricciardi P.C.,
serves as the Debtor's bankruptcy counsel.
An official committee of unsecured creditors has not yet been
appointed in the Chapter 11 case.
RENNOVA HEALTH: Proposed Reverse Stock Split Approved
-----------------------------------------------------
Seamus Lagan, chief executive officer and president of Rennova
Health, Inc., and Alcimede LLC, of which Mr. Lagan is the sole
manager, the holders of 26,684,380 shares of common stock and
250,000 shares of Series J Convertible Preferred Stock, which votes
with the common stock and the Series F Convertible Preferred Stock,
with each share of Series J Preferred Stock having 12,000 votes,
representing 50.4% of the total voting power of the Company's
voting securities, approved by written consent in lieu of a special
meeting of stockholders the following proposals, which had
previously been approved and recommended to be approved by the
stockholders by the Board of Directors of the Company.
Proposal 1: To approve an amendment to the Company's
Certificate of Incorporation, as amended, to
increase the number of authorized shares of its
common stock from 3,000,000,000 to 10,000,000,000
shares.
Proposal 2: To approve an amendment to the Company's
Certificate of Incorporation, as amended, to
effect a reverse stock split of all of the
outstanding shares of its common stock, at a
specific ratio from 1-for-200 to 1-for-500, and to
grant authorization to the Company's Board of
Directors to determine, in its discretion, the
specific ratio and timing of the reverse split any
time before Sept. 1, 2019, subject to the Board of
Directors' discretion to abandon such amendment.
About Rennova Health
Rennova Health, Inc. -- http://www.rennovahealth.com/-- owns and
operates two rural hospitals in Tennessee and 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
shareholders of $108.5 million for the year ended Dec. 31, 2017,
compared to a net loss attributable to common shareholders of
$32.61 million for the year ended Dec. 31, 2016.
As of June 30, 2018, the Company had $16.24 million in total
assets, $138.32 million in total liabilities, $5.83 million in
redeemable preferred stock I-1, $2.03 million in redeemable
preferred stock I-2, and a total stockholders' deficit of $129.9
million.
The report from the Company's independent accounting firm Green &
Company, CPAs, in Tampa, Florida, the Company's auditor since 2015,
on the consolidated financial statements for the year ended Dec.
31, 2017, includes an explanatory paragraph stating that the
Company has significant net losses, cash flow deficiencies,
negative working capital and accumulated deficit. Those conditions
raise substantial doubt about the company's ability to continue as
a going concern.
ROCK CREEK: Case Summary & 9 Unsecured Creditors
------------------------------------------------
Debtor: Rock Creek Medical Plaza, LLC
712 First Terrace
Lansing, KS 66043
Business Description: Rock Creek Medical Plaza, LLC is a privately
held company that leases real estate. The
Company owns in fee simple a real property
located at 712 First Terrace, Lansing,
Kansas with an appraised value of $3.2
million.
Chapter 11 Petition Date: August 23, 2018
Court: United States Bankruptcy Court
District of Kansas (Kansas City)
Case No.: 18-21755
Debtor's Counsel: Colin N. Gotham, Esq.
EVANS & MULLINIX, P.A.
7225 Renner Road, Suite 200
Shawnee, KS 66217
Tel: (913) 962-8700
Fax: (913) 962-8701
Email: Cgotham@emlawkc.com
Total Assets: $3,250,250
Total Liabilities: $2,827,080
The petition was signed by Lisa Madsen, member.
A full-text copy of the petition containing, among other items, a
list of the Debtor's nine unsecured creditors is available for free
at:
http://bankrupt.com/misc/ksb18-21755.pdf
ROSEGARDEN HEALTH: Trustee Gets Interim OK to Use Cash Collateral
-----------------------------------------------------------------
Jon Newton, the Chapter 11 Trustee for the jointly administered
estates of The Rose garden Health and Rehabilitation Center LLC and
Bridgeport Health Care Center Inc., was granted by the U.S.
Bankruptcy Court for the District of Connecticut a preliminary
order authorizing him to use cash collateral.
In exchange for the preliminary use of cash collateral by the
Trustee, and as adequate protection for the alleged secured
creditors' interests therein, the alleged secured Creditors are
hereby granted replacement and/or substitute liens as provided in
Section 361(2) of the Bankruptcy Code in all post-petition assets
and proceeds thereof, excluding all bankruptcy avoidance causes of
action, having the same validity, extent, and priority that the
alleged secured creditors possessed as to such liens on the Filing
Date.
A full-text copy of the Order is available at:
http://bankrupt.com/misc/ctb18-30623_556_Ord_Cash.pdf
About The Rosegarden Health and
Rehabilitation Center LLC
Located in Waterbury, Connecticut, Bridgeport Health Care Center
and The Rosegarden Health and Rehabilitation Center LLC --
http://www.bridgeporthealthcarecenter.com/-- provide long and
short-term nursing care and rehabilitation services. Bridgeport
offers nursing care, Alzheimer's care, rehab/physical therapy,
wound care, dietary, respite care, and hospice care.
Rosegarden services include 24-hour nursing care, APRN on Staff,
short-term/long-term rehab, physical therapy, speech therapy,
occupational therapy, IV therapy/medical/incontinence management,
CPAP/BIPAP/tracheotomy care, podiatry; dental, audiology services,
respiratory care, among others.
Bridgeport Health Care and Rosegarden sought Chapter 11 protection
(Bankr. D. Conn. Case Nos. 18-50488 and 18-30623, respectively) on
April 18, 2018. In the petitions signed by their chief financial
officer, Chaim Stern, Bridgeport estimated assets and liabilities
of less than $50 million, and Rosegarden Health estimated assets
and liabilities of less than $10 million.
The Hon. Julie A. Manning is the case judge. Richard L. Campbell,
Esq., at White and Williams LLP, serves as the Debtors' counsel.
William K. Harrington, the United States Trustee for Region 2,
appointed Joseph J. Tomaino as patient care ombudsman in the cases.
The PCO hired Barbara H. Katz, as counsel.
Jon Newton was appointed Chapter 11 trustee for the Debtors. The
trustee is represented by Reid and Riege, P.C.
SAFE HAVEN: Moves to Use Cash Collateral Until July 2019
--------------------------------------------------------
Safe Haven Health Care Inc., filed with the U.S. Bankruptcy Court
for the District of Idaho a motion seeking to use cash collateral
on an interim basis and on a continuing basis during 2018 and 2019
to pay operating expenses.
As it continues with its healthcare operations, the company will
continue to collect income and receive payments in its existing
bank account, from numerous federal agencies and programs. In the
course of the Debtor's operation, t
he Debtor projects that it will continue to collect income of
approximately $682,707 per month from its healthcare operations.
The company's listed creditors may have a lien in the Debtor's cash
collateral:
Creditors Appx. Amount Owed
--------- -----------------
Alliance Laundry Systems $2,034
Bank of Idaho $134,876
Business Merchant Funding Unknown
Cash Capital Group, LLC $137,750
CCF Leasing Co $5,078
Corporation Service Company Unknown
Eastern Idaho Development $51,000
Empire Funding $62,250
Fundrock, LLC $90,000
Idaho Associates, LLC Unknown
Kubota Credit Corporation Unknown
Pluslux, LLC Unknown
Pocatello Idaho Property, LLC Unknown
Rebecca Taylor Unknown
U.S. Small Business Administration $2,933,811
Yellowstone Capital $108,750
Zions First National Bank $300,000
The Debtor requests authorization to use cash collateral on an
emergency basis, pending a final hearing on this motion, to pay the
expenses from August 10th, 2018, through the date of the final
hearing on the cash collateral motion, including payroll,
independent contractor expenses due and owing immediately. In
addition, the Debtor seeks authorization to continue the use of
cash collateral from and after the date of the final hearing
through July 2019 in accordance with the budget.
The amount of cash collateral sought to be used on an interim basis
for the remainder of August and part of September 2018 (pending a
final hearing on the Motion), is approximately $605,828 per month
(average) from the sale of services.
To the extent they claim a prepetition lien in the Debtor's cash
collateral, the Debtor is willing to give the Listed Creditors
adequate protection as follows:
a. By granting said creditors a post-petition lien, to the same
extent that they had a lien pre-petition, against the Debtor's
postpetition cash collateral.
b. In addition, based on the estimated market value its other
collateral, Alliance Laundry Systems, Eastern Idaho Development
appears to have an equity cushion to protect its debt.
A full-text copy of the Motion is available at:
http://bankrupt.com/misc/18-01044_9_M_Safe_Haven_Cash_Coll.pdf
About Safe Haven Health Care
Safe Haven Health Care, Inc. -- http://www.safehavenhealthcare.org/
-- provides both in-patient and out-patient psychiatric, skilled
nursing and assisted living services. The Company has facilities
throughout southwestern, central and eastern Idaho. Safe Haven is
a division of CareFix, Inc.
Safe Haven Health Care filed a Chapter 11 petition (Bankr. D. Idaho
Case No. 18-01044) on Aug. 10, 2018. In the petition signed by
Scott Burpee, president, the Debtor disclosed $10,234,818 in assets
and $17,313,444 in liabilities. The case is assigned to Judge Jim
D. Pappas. Angstman Johnson, led by Matthew Todd Christensen, is
the Debtor's counsel.
SAR TECH: U.S. Trustee Unable to Appoint Committee
--------------------------------------------------
No official committee of unsecured creditors has been appointed in
the Chapter 11 case of Sar Tech LLC as of August 22, according to a
court docket.
About Sar Tech LLC
Sar Tech LLC sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. N.D. W.Va. Case No. 18-00666) on July 12, 2018. At
the time of the filing, the Debtor disclosed that it had estimated
assets of less than $50,000 and liabilities of less than $50,000.
The Debtor tapped J Frederick Wiley PLLC as its legal counsel.
SAVVAS GIANASMIDIS: Lawyers Not Entitled to Prepetition Interest
----------------------------------------------------------------
The appeals case captioned IN RE: SAVVAS V. GIANASMIDIS, Debtor,
Civil Action No. 17-11440-WGY (D. Mass.) deals with whether the
Appellants Stephen J. Kuzma, The Law Offices of Russo & Minchoff
and India L. Minchoff (the "Lawyer Creditors"), are able to obtain
interest on the legal fees they were awarded in binding
arbitration, and, if so, what the appropriate interest rate ought
be from the Debtor and Appellee, Savvas V. Gianasmidis.
Upon review of the case, District Judge William G. Young affirms
the Bankruptcy Court's ruling that the Lawyer Creditors are not
entitled to prepetition interest, reverses the Bankruptcy Court's
ruling that pendency interest began accruing as of the date of the
arbitration award, and vacates the Bankruptcy Court's determination
that the federal judgment rate applies to post-award, pendency
interest.
If a contract is silent on the applicable interest rate,
Massachusetts law provides that "upon a verdict, finding or order
for judgment for pecuniary damages, interest shall be added by the
clerk of the court . . . at the rate of twelve per cent per annum
from the date of the breach or demand." Mass. Gen. Laws Ann. ch.
231, section 6C. The purpose of prejudgment interest is to
compensate a party "for the loss of use or the unlawful detention
of money. It is not intended "to penalize the wrongdoer, or to make
the damaged party more than whole." Addition of interest under
section 6C is a "ministerial act" that "attaches automatically" and
therefore "for interest to be awarded, a judge need not mention
it." The Massachusetts Supreme Judicial Court has ruled, however,
when an arbitration award is silent on preaward interest courts are
to presume "[claims for interest have] been submitted to
arbitration." Otherwise allowing parties to come in and challenge
arbitration awards would "vitiate[]" the purpose of arbitration.
Neither the 2009 nor the 2011 Fee Agreement provides that interest
will be paid in case of a dispute over fees, much less provide an
interest rate. As the Bankruptcy Court observed, the text of
section 6C is unambiguous; its application is premised on a
"verdict" or "order for judgment" resulting in pecuniary damages.
The Lawyer Creditors cite to no authority establishing that section
6C may apply in the absence of a judgment or after a judgment has
been vacated, and they do not offer their own explanation as to why
it ought apply. Nor do they attempt to claim any other basis for
their entitlement to prepetition interest, common law or otherwise.
Consequently, because the Lawyer Creditors cannot provide a legal
basis for prepetition interest, there is no need to "look behind"
or examine the basis for the arbitration award. The Lawyer
Creditors argue that the Bankruptcy Court did not articulate
grounds for denying prepetition interest. This is patently false;
the Bankruptcy Court's denial of prepetition interest as set forth
above was premised on the fact that the Massachusetts Appeals Court
vacated the Superior Court's judgment and that there was therefore
no judgment upon which to apply the statutory 12% interest rate.
The second issue the Lawyer Creditors appeal is the Bankruptcy
Court's calculation of the period during which pendency interest
accrued. Gianasmidis argues that this calculation was within the
Bankruptcy Court's discretion and is therefore subject to the abuse
of discretion review. The Lawyer Creditors allege the Bankruptcy
Court committed "clear error" in its calculation. The plain reading
of section 506(b), when read in context with section 502, requires
that pendency "shall be allowed" as of the date of the filing of
the petition.
Although Gianasmidis objected to the Lawyer Creditors' claim of
proof and the claim was therefore not "determined" at the time of
the petition, the claim, once determined, is not to be treated any
differently than it would be were it determined at the time the
petition was filed. To treat section 506(b) motions for pendency
interest as accruing from the time the claim is determined would
violate the spirit of section 502(e)(2) by disadvantaging claims
that were not determined at the time the bankruptcy petition was
filed. Thus, the plain meaning of section 506(b) mandates that an
over-secured creditor's claim shall be allowed interest from the
date of the petition.
The "flexible approach" to determine when pendency interest should
accrue is not implicated because the Lawyer Creditors were
undisputedly over-secured at all times before and after the
petition date. The Bankruptcy Court's ruling that the pendency
interest began accruing after the arbitration award -- nearly
twenty months later --is therefore inconsistent with section
506(b).
Thus, the Court reverses the Bankruptcy Court's ruling to the
extent it ordered pendency interest to run from the date of the
arbitration award.
Regarding the last issue, the Court cannot conclude that the
Bankruptcy Court abused its "limited discretion" in awarding the
lower federal interest rate rather than the 12% Massachusetts
statutory rate. Even so, since the Bankruptcy Court needs to
recalculate the pendency interest over the correct period, the
better part of valor is to vacate the determination of the interest
rate to allow the Bankruptcy Court further to consider the matter
of the appropriate pendency interest rate in light of the
foregoing.
A full-text copy of the Court's Memorandum and Order dated August
3, 2018 is available at https://bit.ly/2N2G3G0 from Leagle.com.
Stephen J. Kuzma, Appellant, represented by Pro se.
The Law Offices of Russo & Minchoff, Appellant, represented by
India L. Minchoff, Law Offices of Russo & Minchoff.
India L. Minchoff, Appellant, represented by Pro se.
Savvas V Gianasmidis, Debtor, represented by Christopher M. Condon
--ccondon@murphyking.com -- Murphy & King Professional Corporation,
George J. Nader -- nader@rileydever.com -- Riley & Dever PC, Bill
N. Jacob, Bill N. Jacob, Esq., Harold B. Murphy --
hmurphy@murphyking.com -- Murphy & King, PC, Herbert Weinberg,
Rosenberg & Weinberg,Kathleen R. Cruickshank, Hanify & King P.C. &
Michael K. O'Neil -- moneil@murphyking.com -- Murphy & King, PC.
John Fitzgerald, Assistant U.S. Trustee, Trustee, represented by
Paula R.C. Bachtell, Department of Justice.
Savvas V. Gianasmidis filed a voluntary petition for relief under
Chapter 13 of the Bankruptcy Code (Bankr. D. Mass. Case No.
15-12119) on May 28, 2015. On July 12, 2015, the bankruptcy case
was converted to a Chapter 11 case.
SEQUA CORP: S&P Cuts Issuer Credit Rating to CCC+, Outlook Stable
-----------------------------------------------------------------
S&P Global Ratings lowered its issuer credit rating on Sequa Corp.
to 'CCC+' from 'B-'. The outlook is stable.
S&P said, "At the same time, we lowered our issue-level rating on
the company's first-lien credit facility consisting of a $135
million revolver and $920 million first-lien term loan, both due
2021, to 'CCC+' from 'B-'. We revised the recovery rating to '4'
from '3', indicating our expectation for average recovery (30%-50%;
rounded estimate: 45%) in a default scenario.
"Additionally, we lowered our issue-level rating on the company's
$350 million second-lien term loan due 2022 to 'CCC-' from 'CCC'.
The '6' recovery remains unchanged, indicating our expectation for
negligible recovery (0%-10%; rounded estimate 0%) in a default
scenario.
"The downgrade reflects our view that although Sequa Corp.'s
near-term liquidity is adequate, we believe that the company's
long-term financial commitments are unsustainable based on our
expectations of continued weak operating performance through 2019.
Sequa continues to underperform our expectations due to operational
issues for both the Chromalloy and Precoat units, the loss of the
KC-10 program, and investment in new programs weighing on earnings
and cash flow. These factors resulted in debt-to-EBITDA above 10x
in 2017, and while we expect some improvement in 2018, it will
likely remain high at above 9x and above 8x in 2019. We had
previously expected debt-to-EBITDA of 8.5x-9.0x in 2017 and
7.5x-8.0x in 2018.
"The stable outlook on Sequa reflects that, while leverage remains
high due to weaker earnings and negative cash flow from the loss of
the KC-10 program, issues at a couple of Precoat facilities, and
investments in new programs, there are no near-term debt maturities
or imminent liquidity issues. Although we expect Sequa's credit
ratios to improve in 2018 and into 2019 as profitability improves,
its ratios will still remain very weak, with debt-to-EBITDA above
8x through the period. However, despite this improvement, the
company's long-term financial commitments appear to be
unsustainable.
"We could lower our rating on the company if we believe that it
could default within 12 months due to a near-term liquidity crisis
or if we believe it is considering a distressed exchange offer or
redemption. The liquidity crisis would likely be driven by greater
investment in new programs, the loss of another key contract, or
additional earnings deterioration resulting in sustained cash
outflows.
"We could raise our rating on Sequa if its earnings and cash flow
improve faster than we expect and the company reduces its debt,
causing debt-to-EBITDA to remain below 8x while maintaining
adequate liquidity. This could happen if new programs ramp-up
quicker than expected or have lower investment needs, operational
efficiency improvements are successful in boosting profitability,
or free cash flow improves faster than expected and the company
uses it to repay debt."
SEVEN STARS: Signs 3-Year $24B Deal with Electric Bus Operator
--------------------------------------------------------------
Seven Stars Cloud Group, Inc. has entered into a ground-breaking,
three-year, exclusive $24B deal with National Transportation
Capacity Co Ltd (NTS) to issue fixed income lease financing-based
products, through a global strategic alliance network which
operates in a regulatory compliant manner, for large-scale electric
bus upgrades, as part of the Chinese government's regulations for
all buses to be replaced with electric buses by 2021 (within the
next three years). The market size for the mandatory replacements
and upgrades to achieve fully-electric bus operations in China is
estimated at 1 Trillion RMB (approx. $145B). NTS is China's
largest full-service operator for electric buses, with sales, lease
financing, a charging station network, and real-time data services
including media, payments, maps, and facial recognition.
Under the terms of the deal, SSC, through its global strategic
alliance network, will provide two distinct financing campaigns,
one in China and the second across global markets. For the
China-based financing, SSC will conduct financing activities
through the sale of fixed income products to raise 60 Billion RMB
(approx. $8.75B) over three years (an average of 20B RMB / $2.9B
per year). For the global markets financing activities, SSC will
exclusively provide both fixed income and asset digitization
products to raise $15B over three years (an average of $5B per
year).
Bruno Wu, chairman and CEO of Seven Stars Cloud remarked, "This is
a truly ground-breaking deal globally for blockchain-based fintech
companies to gain such a large-scale, asset-backed, contract. It
represents a new era and a paradigm shift in the way in which we
view asset-based financial products; and it will serve as a window
to the world on how asset value and liquidity can be unlocked by
traditional industries as we take fixed income products into the
digital era. By combining regulated financial infrastructure, and
the market confidence in asset-based products, with AI-enhanced
risk management and the dynamics of blockchain-enabled
fractionalization, securitization, tokenization, and global trading
of token-based offerings, we are delivering the next-generation of
financial products which will be compelling for both asset-rich
industries and investors alike. It's an exciting time for SSC, and
we're extremely pleased and honored to partner with NTS on this
offering."
Jihong Huang, president of National Transportation Capacity Co Ltd
stated, "We're delighted to enter into this deal, which is historic
in terms of fixed-income asset digitization. SSC has taken
traditional lease financing business offerings and rejuvenated them
with today's new technology, in which flexibility,
fractionalization, and global accessibility are key. A combination
of SSC's Blockchain and AI technologies, combined with our shared
mission for unlocking both liquidity and enterprise value through
asset digitization, will result in a significant transformation of
the entire lease financing-based fixed income market. Each of the
leading ten bus manufacturers in China strongly back NTS in this
initiative, and the success of this transaction with SSC will place
asset-backed digital offerings firmly on the map."
About Seven Stars
Seven Stars Cloud Group, Inc., formerly Wecast Network, Inc. --
http://www.sevenstarscloud.com/-- is aiming to become a next
generation Artificial-Intelligent (AI) & Blockchain-Powered,
Fintech company. By managing and providing an infrastructure and
environment that facilitates the transformation of traditional
financial markets such as commodities, currency and credit into the
asset digitization era, SSC provides asset owners and holders a
seamless method and platform for digital asset securitization and
digital currency tokenization and trading. The company is
headquartered in Tongzhou District, Beijing, China.
Seven Stars reported a net loss of $10.19 million for the year
ended Dec. 31, 2017, compared to a net loss of $28.50 million for
the year ended Dec. 31, 2016. As of June 30, 2018, Seven Stars had
$153.57 million in total assets, $117.53 million in total
liabilities, $1.26 million in convertible preferred stock and
$34.77 million in total equity.
B F Borgers CPA PC's report on the consolidated financial
statements for the year ended Dec. 31, 2017, contains an
explanatory paragraph expressing substantial doubt regarding the
Company's ability to continue as a going concern. The auditors
stated that the Company incurred recurring losses from operations,
has net current liabilities and an accumulated deficit that raise
substantial doubt about its ability to continue as a going concern.
SHREE SWAMINARAYAN: TD Bank Seeks Appointment of Ch. 11 Trustee
---------------------------------------------------------------
TD Bank, N.A., asks the U.S. Bankruptcy Court for the District of
New Jersey to direct the appointment of a Chapter 11 trustee in the
bankruptcy case of Shree Swaminarayan Satsang Mandal, Inc.
A hearing to consider approval of the request is scheduled for
Sept. 12, 2018, at 11:00 a.m.
TD Bank is represented by:
Timothy P. Duggan, Esq.
STARK & STARK
A Professional Corporation
993 Lenox Drive, Bldg. 2
Lawrenceville, NJ 08648-2389
Tel: (609) 9060
About Shree Swaminarayan
Satsang Mandal
Shree Swaminarayan Satsang Mandal Inc. filed a Chapter 11 petition
(Bankr. E.D. Tex. Case No. 17-42100) on Sept. 26, 2017. At the
time of filing, the Debtor estimated less than $1 million both in
assets and liabilities.
On Dec. 6, 2017, the case was transferred to the U.S. Bankruptcy
Court for the District of New Jersey and was assigned a new case
number (Case No. 17-34558). Judge Michael B. Kaplan presides over
the case.
The Debtor tapped Andrew J. Kelly, Esq., at The Kelly Firm, P.C.,
and Joyce W. Lindauer, Esq., and Sarah M. Cox, Esq., at Joyce W.
Lindauer Attorney, PLC, as counsel.
The Official Committee of Unsecured Creditors formed in the case
retained Fox Rothschild LLP, as attorney.
SKILLSOFT CORP: Bank Debt Trades at 10% Off
-------------------------------------------
Participations in a syndicated loan under which Skillsoft
Corporation is a borrower traded in the secondary market at 89.54
cents-on-the-dollar during the week ended Friday, August 17, 2018,
according to data compiled by LSTA/Thomson Reuters MTM Pricing.
This represents an increase of 1.18 percentage points from the
previous week. Skillsoft Corporation pays 825 basis points above
LIBOR to borrow under the $185 million facility. The bank loan
matures on April 28, 2022. Moody's rates the loan 'Caa3' and
Standard & Poor's gave a 'CCC' rating to the loan. The loan is one
of the biggest gainers and losers among 247 widely quoted
syndicated loans with five or more bids in secondary trading for
the week ended Friday, August 17.
SPA 810: Committee Objection to PFP Transaction Disclosed in Plan
-----------------------------------------------------------------
SPA 810, LLC, and its affiliate Phoenix Global Consulting Group,
Inc., filed a first amended disclosure statement in support of
their joint plan of reorganization.
The disclosure statement is amended to incorporate additional
disclosures requested by the joint committee of unsecured creditors
appointed in these chapter 11 cases.
The Debtor discloses that its decision to proceed with the
Princeton Franchise Partners, LLC transaction was not made lightly
or without consideration of other alternatives such as an auction
of its assets. Under the present circumstances, the Debtor does not
believe an auction is a viable choice for a number of reasons.
First, an auction would not guarantee that a potential purchaser
would be able to capitalize the business to ensure its continuity.
Second, an auction would not provide for the protection of the
brand in which the franchisees have invested. Third, for nearly a
year and a half, the Debtors have engaged in significant attempts
to market the business to potential purchasers and investors, all
to no avail. The Debtors have no reason to believe that an auction
will produce a greater return to creditors than that provided by
the Princeton transaction and do not want to risk Princeton’s
withdrawal of its support.
Nevertheless, the Debtors' decision not to establish a formal
auction does not preclude the consideration of competing offers to
enhance a higher return to creditors. For example, to further
promote this possibility, Debtors will send a copy of the approved
First Amended Disclosure Statement to all parties that have
expressed an interest in acquiring the Debtors’ assets.
The Committee objects to the proposed transaction with Princeton
for several reasons. First, the Committee believes that the
proposed transaction does not provide for fair value for the
interests and assets of Debtors. Second, the Committee believes
that the proposed transaction with Princeton does not provide for
or permit an open auction sale of the interests or assets to
determine if another party is willing to make a higher or better
proposal. The Committee asserts that only an auction provides for a
test of the true value of the Debtors. As stated above, the Debtors
believe that an auction may result in no buyers and in fact chill
the interest of Princeton and likely would result in the ultimate
demise of the company. Finally, the Committee asserts that the
Princeton transaction includes a provisional agreement for
employment and compensation with the Debtors' principal, John
Dunatov, which the Debtors will disclose in the Plan Supplement.
Debtors state that no agreement, provisional or otherwise exist,
however, should any such agreement materialize the Debtors will
disclose it in the Plan Supplement.
A full-text copy of the First Amended Disclosure Statement is
available at:
http://bankrupt.com/misc/azb2-18-06718-138.pdf
About SPA 810 and Phoenix Global Consulting Services
SPA 810, LLC -- https://www.spa810.com -- owns and operates spas.
It is headquartered in Scottsdale, Arizona, with locations in
Texas, Arkansas, Florida, Iowa, Minnesota, Georgia, Oklahoma,
Colorado, and Kentucky.
SPA 810 and affiliate Phoenix Global Consulting Services sought
protection under Chapter 11 of the Bankruptcy Code (Bankr. D. Ariz.
Case Nos. 18-06718 and 18-06719) on June 11, 2018.
At the time of the filing, SPA 810 estimated assets of less than
$500,000 and liabilities of less than $1 million to $10 million;
and Phoenix Global estimated less than $50,000 in assets and less
than $1 million in liabilities.
The Debtors tapped Dickinson Wright PLLC as their legal counsel.
On June 22, 2018, the Office of the U.S. Trustee appointed an
official committee of unsecured creditors in the Debtors' cases.
The committee hired Tiffany & Bosco, P.A. as its legal counsel.
TADEUSZ KOZLOWSKI: OK'd to Use Cash Collateral Through Sept. 30
---------------------------------------------------------------
Judge Donald R. Cassling of the U.S. Bankruptcy Court of Northern
District of Illinois authorized Tadeusz and Bogumila Kozlowski to
use cash collateral on an interim basis.
Lender Midwest Community Bank objected to the Debtor's motion to
use cash collateral.
Judge Cassling on Aug. 15, 2018, entered an order authorizing the
Debtors to use cash collateral from July 25 to Sept. 30, 2018.
Midwest is granted adequate protection, i.e., insurance, security
interests, proper maintenance of budget, assets and accounts, among
others. Moreover, rights and remedies remain available to Midwest
despite the Order and/or failure to require strict performance
thereof.
A continued hearing of the Motion is scheduled on Sept. 25, 2018,
at 10:30 a.m.
A full-text copy of the Order is available at:
http://bankrupt.com/misc/ilnb18-0553_112_Int_Ord.pdf
Tadeusz Kozlowski and Bogumila Z. Kozlowski sought Chapter 11
protection (Bankr. N.D. Ill. Case No. 18-05523) on Feb. 28, 2018.
Burke, Warren, Mackay & Serritella, P.C., led by David K. Welch,
Esq., serves as counsel to the Debtor.
TELE CIRCUIT: Creditor Seeks Appointment of Ch. 11 Trustee
----------------------------------------------------------
Robert A. Doane, a creditor, asks the U.S. Bankruptcy Court for the
Northern District of Georgia to direct the appointment of a Chapter
11 Trustee in the bankruptcy case of Tele Circuit Network Corp.
pursuant to 11 U.S.C. Section 1104(a) and (b), on the grounds that
the Debtor and its principal and chief executive officer, Ashar
Syed, have committed acts constituting fraud, dishonesty, and gross
mismanagement of the affairs of the Debtor, and the appointment is
in the best interests of the creditors.
Mr. Doane tells the Court that the Debtor denies having any
operations overseas despite the overwelming evidence that Tele
Circuit has offices in both Islamabad and Rawalpindi, Pakistan, and
conducts telemarketing campaigns from those locations. Mr. Doane
also points out that Mr. Syed, in the five days preceding the
Petition Date, made suspect transfers from Tele Circuit's SunTrust
accounts in the total amount of $445,236. Moreover, Mr. Doane
notes that the Debtor has not opened any debtor-in-possession
accounts.
Mr. Doane asserts that it is the best interests of the creditors in
this case to have a true fiduciary appointed in order to assess the
present business affairs and methods of Tele Circuit, determine the
nature and extent of its assets and overseas operations and recover
preferencial and/or fraudulent payments to Syed and his family
members. Given his conduct, it is clear that Syed cannot be
trusted to take these actions, Mr. Doane says. Indeed it seems
ludicrous to assume that Syed will take any action to change his
business methods or recover the preferential payments that he made
to himself or for his own benefit. The appointment of a true
fiduciary is necessary to insure that the creditors receive a full
and complete disclosure of the assets of the Debtor and receive
full, adequate and timely information and disclosure concerning the
Debtor's operations. The appointment of the Trustee is likewise in
the best interest of the creditors in order to recover the Debtor's
assets which Syed saw fit to transfer to himself.
A copy of the Motion from PacerMonitor.com is available at
https://tinyurl.com/y8yf2mtu at no charge.
Mr. Doane is represented by:
Richard B. Reiling, Esq.
Bottone | Reiling
63 Atlantic Ave., 3rd Floor
Boston, MA 02110
Phone: 617-412-4291
Facsimile:617-412-4406
- and -
David G. Cheng, Esq.
1801 Peachtree St. NE, Ste. 155
Atlanta, GA 30309-1859
Phone: 334-451-4346
Facsimile: 312-626-2487
About Tele Circuit Network Corporation
Tele Circuit Network Corporation provides telecommunications
services. It offers consumers prepaid home phone plans, various
prepaid service plans, easy-to-use calling features and customer
service. The company was founded in 2003 with its head office
located in Duluth, Georgia.
Tele Circuit Network sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. N.D. Ga. Case No. 18-60777) on June 28,
2018.
In the petition signed by Ashar Syed, chief executive officer, the
Debtor estimated assets of $1 million to $10 million and
liabilities of $1 million to $10 million.
Judge Wendy L. Hagenau presides over the case. The Debtor hired
Danowitz Legal, P.C., and Paul Reece Marr, P.C., as its legal
counsel.
TLC RESIDENTIAL: DOJ Watchdog Seeks Appointment of Ch. 11 Trustee
-----------------------------------------------------------------
Tracy Hope Davis, United States Trustee for Region 17, filed a
motion asking the U.S. Bankruptcy Court for the Northern District
of California to convert the Chapter 11 case of TLC Residential,
Inc., or dismiss the Chapter 11 case or, in the alternative, to
appoint a Chapter 11 trustee.
The U.S. Trustee asserts that "cause" exists to dismiss or to
convert this case to Chapter 7, or, in the alternative, to appoint
a Chapter 11 trustee, for several reasons. First, the Debtor has
failed timely to provide information reasonably requested by the
United States Trustee. Second, the Debtor has filed a monthly
operating report ("MOR") containing errors and omissions that have
not been corrected as requested by the United States Trustee.
Third, the Debtor has failed to comply with an Order of this Court,
by failing to file an application to employ an accountant by August
17, 2018, by failing to correct all of the errors in its schedules,
and by failing to file a motion requesting retroactive approval of
the post-petition payment of prepetition claims. The Debtor's
actions constitute gross mismanagement of the estate. For these
reasons, the United States Trustee believes it has established
cause to convert or dismiss this case pursuant to Section 1112(b)
of the Bankruptcy Code.
A hearing on the U.S. Trustee's Motion is scheduled for Sept. 20,
2018 at 10:00 a.m.
As previously reported by The Troubled Company Reporter, because
the Debtor and its sole owner and chief executive officer,
Francisco Montero, have committed acts constituting fraud,
dishonesty, and gross mismanagement of the affairs of the Debtor,
the Secretary of Labor asked the Court (1) to direct the
appointment of Chapter 11 Trustee under 11 U.S.C. Section
1104(a)(1) and (2); or , in the alternative (2) direct the
appointment of an examiner; or, in the alternative; (3) grant
relief from the automatic stay under Section 362 of the Bankruptcy
Code so that the Secretary may move in District Court for
appointment of a receiver.
On July 5, 2018, the court held a preliminary hearing on the Labor
Department's Motion and entered a Scheduling Order setting a trial
on the Motion. On July 17, the court convened a trial. On July
18, the court convened a continued hearing on the Motion and read
its ruling into the record. For the reasons stated on the record,
the court denies the Labor Department's Motion and ordered that the
Debtor must at all times remain in compliance with the non-monetary
provisions of the judgment entered April 5, 2018 in Acosta v. TLC
Residential, Inc., et al., Case No. C 15-02776 (N.D. Cal.).
The Court, during that hearing, ordered the U.S. Trustee to monitor
the case closely.
The court admonishes TLC, TLC's counsel, and Mr. Montero that it
will not tolerate: (1) conduct such as that in which Mr. Montero
engaged in the District Court; (2) the sloppy practice TLC's
counsel has exhibited so far; (3) the continued subsidization by
TLC of Mr. Montero's personal expenses or the expenses of Mr.
Montero's other businesses; and (4) failure to comply with the
non-monetary provisions of the Judgment.
"This court is giving TLC one shot -- and one shot only -- to
reorganize," Judge Blumenstiel said during that hearing.
About TLC Residential
TLC Residential, Inc., provides sober living homes and transitional
housing for people with substance use disorder disabilities. It is
headquartered in San Francisco, California.
TLC Residential sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. N.D. Cal. Case No. 18-30571) on May 23,
2018. In the petition signed by Francisco Montero, president, the
Debtor estimated assets of less than $50,000 and liabilities of $1
million to $10 million.
Judge Hannah L. Blumenstiel presides over the case.
TNT CRANE: Bank Debt Trades at 18% Off
--------------------------------------
Participations in a syndicated loan under which TNT Crane & Rigging
Incorporated is a borrower traded in the secondary market at 82.33
cents-on-the-dollar during the week ended Friday, August 17, 2018,
according to data compiled by LSTA/Thomson Reuters MTM Pricing.
This represents an increase of 0.82 percentage points from the
previous week. TNT Crane pays 900 basis points above LIBOR to
borrow under the $170 million facility. The bank loan matures on
November 27, 2021. Moody's rates the loan 'Caa3' and Standard &
Poor's gave a 'CCC-' rating to the loan. The loan is one of the
biggest gainers and losers among 247 widely quoted syndicated loans
with five or more bids in secondary trading for the week ended
Friday, August 17.
TRIGEE FOUNDATION: Denial of N. Durant Bid to Sanction Atty Upheld
------------------------------------------------------------------
Appellant Dr. Nancy Durant in the appeals case captioned NANCY
DURANT, Appellant, v. JEFFREY M. SHERMAN LERCH, EARLY & BREWER,
CHTD, Appellees, Case No. 17-cv-439 (CRC) (D.D.C.) is a creditor of
Trigee Foundation, Inc., the debtor in possession in a closed
Chapter 11 reorganization proceeding before the U.S. Bankruptcy
Court. Dr. Durant appeals three orders by the bankruptcy court in
that proceeding. All three stem from the court's decision not to
monetarily penalize Jeffrey Sherman, Trigee's attorney, for failing
to disclose a conflict of interest. Upon analysis of the facts
presented, District Judge Christopher R. Cooper affirms all three
orders.
The three bankruptcy court orders are: (a) the February 1, 2017
order denying Durant's motion to vacate the fee order; (b) the
January 27, 2017 order denying her motion to continue the hearing
on the motion to vacate the fee order; and (c) the December 22,
2016 disposal of the order to show cause why Mr. Sherman should not
be sanctioned.
Dr. Durant sought to have the fee order vacated on the ground that
Mr. Sherman failed to disclose in his Rule 2014(a) statement that
he had previously represented a secured creditor whose interests
were adverse to his client's in the case. Appellant's Br. at 7.
Despite having reservations about whether Dr. Durant was the real
party in interest (as opposed to Trigee), the bankruptcy court
proceeded to the merits of the motion.
Durant originally filed the motion under Federal Rule of Civil
Procedure 59, which permits motions "to alter or amend judgments."
In bankruptcy actions, such motions must be filed with 14 days
after entry of judgment. As the bankruptcy court explained, Dr.
Durant could not obtain relief under Rule 59 because she filed her
motion to vacate the fee order more than two years after the order
was issued.
The Court holds that Dr. Durant's motion to vacate the fee order
was too little too late. Over two and a half years after the entry
of judgment, she had only limited procedural tools to challenge the
order. And the bankruptcy court did not err in finding that the
crux of her challenge -- Sherman's failure to disclose his
conflict-- simply did not rise to the level of fraud on the court.
Dr. Durant next challenges the bankruptcy court's denial of her
motion to continue the hearing on her motion to vacate the fee
award for 90 to 120 days.
Denying Dr. Durant's motion to delay the hearing for several months
was squarely within the bankruptcy court's discretion to manage its
caseload and expeditiously resolve issues before it. And in this
particular case, the court had twice previously considered the same
issue about Sherman's purported conflict: in Trigee's previous
motion to vacate the fee order (which Durant's motion largely
parroted) and in its order to show cause why Sherman shouldn't be
sanctioned. Having already considered the issue twice, the
bankruptcy court did not abuse its discretion in refusing to
substantially delay the hearing.
Finally, Dr. Durant challenges the bankruptcy court's decision to
dissolve the show cause order and sanction Sherman with an
admonition rather than a monetary penalty. Appeals of bankruptcy
court orders must be noticed within 14 days. The bankruptcy court
discharged the show cause order on December 22, 2016. Dr. Durant
filed her appeal 49 days later, on February 9, 2017. She thus
failed to timely notice her appeal. In any case, the bankruptcy
court did not abuse its discretion in issuing limited sanctions
after holding a hearing and concluding that Sherman's failure to
disclose his conflict was unintentional.
A copy of the Court's Memorandum Opinion dated August 3, 2018 is
available at https://bit.ly/2L5Wb84 from Leagle.com.
NANCY DURANT, Appellant, pro se.
NANCY DURANT, Appellant, represented by John D. Burns, THE BURNS
LAW FIRM, LLC.
U.S. TRUSTEE FOR REGION FOUR, Interested Party, represented by
Joseph Anthony Guzinski, U.S. DEPARTMENT OF JUSTICE.
JEFFREY M. SHERMAN, Appellee, represented by Geoffrey H. Genth --
ggenth@kg-law.com -- KRAMON & GRAHAM, P.A. & James P. Ulwick,
KRAMON & GRAHAM PA.
JEFFREY M. SHERMAN, Appellee, pro se.
LERCH, EARLY & BREWER, CHTD, Appellee, represented by Geoffrey H.
Genth, KRAMON & GRAHAM, P.A.
TRIGEE FOUNDATION, INC., doing business as OASIS REALTY SERVICE,
Debtor-in-Possess, represented by Geoffrey H. Genth, KRAMON &
GRAHAM, P.A., James P. Ulwick, KRAMON & GRAHAM PA, Jeffrey Mitchell
Orenstein, GOREN, WOLFF & ORENSTEIN, LLC & Jeffrey M. Sherman.
SIMPSON SHAW, Principal, Creditor, Shaw Electrical Service, Movant,
pro se.
About Trigee Foundation
Washington, DC-based Trigee Foundation Inc. dba Minnesota Terrace
Apartments, ta Oasis Realty Service sought Chapter 11 protection
(Bankr. D.D.C. Case No. 12-00624) on Sept. 13, 2012. The case is a
"single asset real estate"Â case. Judge S. Martin Teel, Jr.
oversees the case. Jeffrey M. Sherman, Esq., at Lerch, Early &
Brewer, serves as the Debtor's counsel. In its petition, the Debtor
estimated under $10 million in both assets and debts. The petition
was signed by Johnnie Mae Durant.
ULTRA PETROLEUM: Bank Debt Trades at 11% Off
--------------------------------------------
Participations in a syndicated loan under which Ultra Petroleum
Corporation is a borrower traded in the secondary market at 89.18
cents-on-the-dollar during the week ended Friday, August 17, 2018,
according to data compiled by LSTA/Thomson Reuters MTM Pricing.
This represents a decrease of 2.36 percentage points from the
previous week. Ultra Petroleum pays 300 basis points above LIBOR to
borrow under the $800 million facility. The bank loan matures on
April 12, 2024. Moody's rates the loan 'Ba2' and Standard & Poor's
gave a 'BB-' rating to the loan. The loan is one of the biggest
gainers and losers among 247 widely quoted syndicated loans with
five or more bids in secondary trading for the week ended Friday,
August 17.
ULTRA RESOURCES: Moody's Cuts CFR to B2 & Sr. Unsec. Notes to Caa1
------------------------------------------------------------------
Moody's Investors Service downgraded the ratings for Ultra
Resources, Inc., including the Corporate Family Rating to B2 from
B1, the ratings on the senior unsecured notes to Caa1 from B2 and
each of the ratings on the secured first lien revolving credit
facility and term loan to Ba3 from Ba2. The Speculative Grade
Liquidity (SGL) Rating was changed to SGL-4 from SGL-3. The rating
outlook is negative.
"The downgrade of Ultra Resources' ratings reflects Moody's
expectation that Ultra will generate much weaker credit metrics in
2019," commented James Wilkins, Moody's Vice President. "We have
lowered its expectations for Ultra's production volumes and cash
flow generation, reflecting reduced drilling activity, less
productive horizontal wells and lower realized natural gas prices."
The following summarizes the ratings.
Issuer: Ultra Resources, Inc.
Ratings Downgraded:
Corporate Family Rating, downgraded to B2 from B1
Probability of Default Rating, downgraded to B2-PD from B1-PD
Sr Sec First Lien Revolving Credit Facility, downgraded to Ba3
(LGD2) from Ba2 (LGD2)
Sr Sec First Lien Term Loan, downgraded to Ba3 (LGD2) from Ba2
(LGD2)
Sr Unsecured Notes, downgraded to Caa1 (LGD5) from B2 (LGD5)
Speculative Grade Liquidity Rating, downgraded to SGL-4 from SGL-3
Outlook Actions:
Outlook, changed to Negative from Stable
RATINGS RATIONALE
The downgrade reflects Moody's tempered expectations for Ultra's
operational and financial performance in 2018-2019 with lower
natural gas prices and production volumes. The company's realized
natural gas selling prices have been hurt by large negative basis
differentials for natural gas produced in the Pinedale Field. Ultra
had expected to offset the low prices by ramping up its horizontal
drilling program that would increase production volumes, while
improving investment returns. The much lower initial production
rates for long lateral horizontal wells drilled in the second
quarter 2018 proved to be disappointing compared to wells drilled
in the first quarter 2018. Ultra has reduced its drilling rig count
to three from four and lowered its production guidance for 2018.
The lower gas prices and cash flow from operations will reduce
Ultra's financial flexibility and delay development of its
reserves. The company may be required to seek waivers to its
financial covenants.
Ultra's B2 CFR reflects its weakening cash flow metrics, leverage
and lower expected production volumes (273-283 Bcfe for 2018 per
company guidance following the second quarter). Leverage, as
measured by the debt to PV-10 value of proved reserves ratio of 1x
as of year-end 2017, was also high. The company has entered an
agreement to sell its Utah oil assets for $75 million, which will
provide for possible debt reduction but will not materially improve
leverage. The recent slowdown in development of reserves with three
rigs operating will result in lower growth in production volumes
and less improvement in unit costs. Interest expense adds over $3
per boe to costs. Moody's expects retained cash flow (RCF) to debt
to fall below 20% through mid-2019.
Ultra's large, contiguous position in the Pinedale Field in Wyoming
provides a deep drilling inventory with significant future
development opportunities, part of which is economical at current
low natural gas prices, and meaningful proved developed (PD)
reserves. The rating is constrained by the geographic concentration
of reserves that are principally in a single basin and natural gas
production focus. The volatility of Ultra's cash flows, which are
highly levered to weak and range-bound natural gas prices, is
somewhat dampened by an active hedging program. Ultra had a large
majority of its expected second half 2018 natural gas production
hedged as of June 30, 2018, at an average price of $2.88 per MMBtu,
with basis hedges in place to limit exposure to widening basis
differentials. Generally, the company plans to hedge at least 50%
of planned production for the next twelve months.
Ultra's SGL-4 rating reflects weak liquidity as lower realized
natural gas prices and a decrease in development activity will lead
to worsening financial covenant ratios (potentially requiring the
covenants to be amended) and potential reductions in the revolver's
borrowing base. Liquidity is supported by forecasted free cash flow
generation, albeit limited, and substantial current availability
under its reserves-based revolving credit facility. The borrowing
base, which covers the $975 million term loan and $425 million
revolving credit facility, was set at $1.4 billion in April 2018,
and is re-determined semi-annually. Persistently low natural gas
prices and high basis differentials compared to Henry Hub prices
for Ultra's natural gas sales may pressure the borrowing base when
it is redetermined in October 2018 and April 2019. However, there
was only $58 million of borrowings under the revolver, leaving $367
million of available borrowing capacity as of June 30, 2018, which
should allow the company to modestly outspend cash flow from
operations through 2019, should its performance fall short of
forecasts or the company increases capex. Based on current drilling
activity, Moody's expects capital spending to be funded with
internally generated cash flows, and for debt balances to remain
relatively flat.
The revolving credit facility has three financial covenants -- a
minimum EBITDAX to Interest Expense ratio of 2.5x, a minimum
Current Ratio of 1x, and a maximum Net Debt to EBITDAX ratio of
4.5x through June 30, 2019 (stepping down to 4.25x through December
31, 2019). Moody's believes that Ultra may need to seek an
amendment to its Debt to EBITDAX financial covenant in order to
remain in compliance with the terms of its credit agreement, based
on Moody's expectations for natural gas prices and if basis
differentials for Ultra's production remain wide compared to Henry
Hub natural gas prices. Substantially all of the company's assets
are pledged as security under the credit facility, which limits the
extent to which asset sales could provide a source of additional
liquidity. The next debt maturity is in January 2022.
The first lien secured revolving credit facility and first lien
secured term loan are rated Ba3, two notches above the B2 CFR,
consistent with Moody's Loss-Given-Default (LGD) methodology and
reflects the senior secured nature of the debt and more senior
priority claim on assets compared to the unsecured debt. The senior
unsecured notes are rated Caa1, two notches below the B2 CFR,
reflecting the lower priority of their unsecured claims relative to
the secured debt in Ultra's capital structure.
The negative outlook reflects uncertainty over Ultra's development
activity and capital productivity, natural gas selling prices that
will remain low at least until additional pipeline infrastructure
improves basis differentials and cash flows that could lead to a
deterioration in the company's credit metrics and liquidity. The
ratings could be downgraded if liquidity does not improve,
production volumes decline materially or if RCF to debt approaches
10%. The ratings could be upgraded if Ultra maintains RCF to debt
above 25% while its leveraged full-cycle ratio (LFCR) is above
1.5x.
The principal methodology used in these ratings was Independent
Exploration and Production Industry published in May 2017.
Ultra Resources, Inc., a wholly-owned subsidiary of Ultra Petroleum
Corp., is an independent exploration and production company
headquartered in Houston, Texas.
WINDSTREAM CORP: Bank Debt Trades at 13% Off
--------------------------------------------
Participations in a syndicated loan under which Windstream
Corporation is a borrower traded in the secondary market at 87.25
cents-on-the-dollar during the week ended Friday, August 17, 2018,
according to data compiled by LSTA/Thomson Reuters MTM Pricing.
This represents an increase of 0.87 percentage points from the
previous week. Windstream Corporation pays 325 basis points above
LIBOR to borrow under the $580 million facility. The bank loan
matures on February 17, 2024. Moody's rates the loan 'Caa1' and
Standard & Poor's gave a 'B' rating to the loan. The loan is one of
the biggest gainers and losers among 247 widely quoted syndicated
loans with five or more bids in secondary trading for the week
ended Friday, August 17.
[*] Discounted Tickets for 2018 Distressed Investing Conference!
----------------------------------------------------------------
Discounted tickets for Beard Group, Inc.'s Annual Distressed
Investing 2018 Conference are available if you register by August
31. Your cost will be $695, a $200 savings.
Visit https://www.distressedinvestingconference.com/ for
registration details and information about this year's conference
agenda as well as highlights from past conferences.
Now on its 25th year, Beard Group's annual Distressed Investing
conference is the oldest and most established New York
restructuring conference. The day-long program will be held
Monday, November 26, 2018, at The Harmonie Club, 4 E. 60th St. in
Midtown Manhattan.
For a quarter century, the focus of the conference has been on
"Maximizing Profits in the Distressed Debt Market." The event also
serves as a forum for leaders in corporate restructuring, lending
and debt and equity investments to gather and discuss the latest
topics and trends in the distressed investing industry, as well as
exchange ideas about high-profile chapter 11 bankruptcy proceedings
and out-of-court restructurings. They are distinguished
professionals who place their resources and reputations at risk to
produce stellar results by preserving jobs, rebuilding broken
businesses, and efficiently redeploying underutilized assets in the
marketplace.
This year's conference will also feature:
* A luncheon presentation of the Harvey K Miller Award to
Edward I. Altman, Professor of Finance, Emeritus, New York
University's Stern School of Business. (The award will be
presented by last year's winner billionaire Marc Lasry,
Altman's former student.)
* Evening awards dinner recognizing the 12 Outstanding
Restructuring Lawyers
To learn how you can be a sponsor and participate in shaping the
day-long program, contact:
Bernard Tolliver at bernard@beardgroup.com
or Tel: (240) 629-3300 x-149
To learn about media sponsorship opportunities to bring your outlet
into the view of leaders in corporate restructuring, lending and
debt and equity investments, and to expand your network of news
sources, contact:
Jeff Baxt at jeff@beardgroup.com
or (240) 629-3300, ext 150
Beard Group, Inc., publishes Turnarounds & Workouts, Troubled
Company Reporter, and Troubled Company Prospector. Visit
http://bankrupt.com/freetrial/for a free trial subscription to one
or more of Beard Group's corporate restructuring publications.
[^] BOND PRICING: For the Week from August 20 to 24, 2018
---------------------------------------------------------
Company Ticker Coupon Bid Price Maturity
------- ------ ------ --------- --------
Alpha Appalachia
Holdings LLC ANR 3.250 2.048 8/1/2015
American Tire
Distributors Inc ATD 10.250 37.605 3/1/2022
American Tire
Distributors Inc ATD 10.250 37.743 3/1/2022
Appvion Inc APPPAP 9.000 1.125 6/1/2020
Appvion Inc APPPAP 9.000 1.022 6/1/2020
Avaya Inc AVYA 7.000 78.709 4/1/2019
Avaya Inc AVYA 10.500 4.349 3/1/2021
Avaya Inc AVYA 9.000 78.485 4/1/2019
BPZ Resources Inc BPZR 6.500 3.017 3/1/2049
BPZ Resources Inc BPZR 6.500 3.017 3/1/2015
Bon-Ton Department
Stores Inc/The BONT 8.000 17.250 6/15/2021
Brookstone Holdings Corp BKST 10.000 7.750 7/7/2021
Cenveo Corp CVO 6.000 27.750 8/1/2019
Cenveo Corp CVO 6.000 37.250 8/1/2019
Cenveo Corp CVO 8.500 1.500 9/15/2022
Cenveo Corp CVO 6.000 1.842 5/15/2024
Cenveo Corp CVO 8.500 1.000 9/15/2022
Chukchansi Economic
Development Authority CHUKCH 9.750 69.625 5/30/2020
Chukchansi Economic
Development Authority CHUKCH 10.250 70.000 5/30/2020
Claire's Stores Inc CLE 9.000 64.250 3/15/2019
Claire's Stores Inc CLE 6.125 63.345 3/15/2020
Claire's Stores Inc CLE 7.750 7.148 6/1/2020
Claire's Stores Inc CLE 9.000 64.174 3/15/2019
Claire's Stores Inc CLE 7.750 7.148 6/1/2020
Claire's Stores Inc CLE 9.000 64.125 3/15/2019
Claire's Stores Inc CLE 6.125 63.345 3/15/2020
Community Choice
Financial Inc CCFI 10.750 82.763 5/1/2019
Comstock Resources Inc CRK 9.500 97.894 6/15/2020
DBP Holding Corp DBPHLD 7.750 45.500 10/15/2020
DBP Holding Corp DBPHLD 7.750 46.601 10/15/2020
EXCO Resources Inc XCOO 8.500 16.000 4/15/2022
Egalet Corp EGLT 5.500 35.203 4/1/2020
Emergent Capital Inc EMGC 8.500 77.577 2/15/2019
Energy Conversion
Devices Inc ENER 3.000 7.875 6/15/2013
Energy Future Intermediate
Holding Co LLC /
EFIH Finance Inc TXU 9.750 37.500 10/15/2019
Energy Future Intermediate
Holding Co LLC /
EFIH Finance Inc TXU 11.250 37.476 12/1/2018
Entergy Louisiana LLC ETR 6.500 99.703 9/1/2018
Federal Farm Credit Banks FFCB 1.030 99.892 8/28/2018
Federal Farm Credit Banks FFCB 1.890 99.413 8/28/2018
Federal Home Loan Banks FHLB 2.000 94.000 11/10/2026
Federal Home Loan Banks FHLB 1.145 99.824 8/28/2018
Federal Home Loan Banks FHLB 1.200 99.404 8/28/2018
Federal Home Loan
Mortgage Corp FHLMC 1.000 99.403 8/28/2018
Federal Home Loan
Mortgage Corp FHLMC 1.050 99.400 8/28/2018
Federal Home Loan
Mortgage Corp FHLMC 1.000 99.401 8/28/2018
Federal National
Mortgage Association FNMA 1.250 99.412 8/28/2018
Fleetwood Enterprises Inc FLTW 14.000 3.557 12/15/2011
GenOn Energy Inc GENONE 9.500 67.250 10/15/2018
GenOn Energy Inc GENONE 9.500 67.543 10/15/2018
GenOn Energy Inc GENONE 9.500 67.543 10/15/2018
Homer City Generation LP HOMCTY 8.137 38.750 10/1/2019
Las Vegas Monorail Co LASVMC 5.500 4.037 7/15/2019
Lehman Brothers
Holdings Inc LEH 2.070 3.326 6/15/2009
Lehman Brothers
Holdings Inc LEH 1.600 3.326 11/5/2011
Lehman Brothers
Holdings Inc LEH 4.000 3.326 4/30/2009
Lehman Brothers
Holdings Inc LEH 2.000 3.326 3/3/2009
Lehman Brothers
Holdings Inc LEH 1.500 3.326 3/29/2013
Lehman Brothers
Holdings Inc LEH 1.383 3.326 6/15/2009
Lehman Brothers
Holdings Inc LEH 5.000 3.326 2/7/2009
Lehman Brothers Inc LEH 7.500 1.226 8/1/2026
MModal Inc MODL 10.750 6.125 8/15/2020
Mashantucket Western
Pequot Tribe MASHTU 7.350 17.288 7/1/2026
Midstates Petroleum
Co Inc / Midstates
Petroleum Co LLC MPO 10.750 0.961 10/1/2020
Nine West Holdings Inc JNY 8.250 27.250 3/15/2019
Nine West Holdings Inc JNY 6.875 26.750 3/15/2019
Nine West Holdings Inc JNY 8.250 27.000 3/15/2019
OMX Timber Finance
Investments II LLC OMX 5.540 5.004 1/29/2020
Orexigen Therapeutics Inc OREXQ 2.750 5.125 12/1/2020
Orexigen Therapeutics Inc OREXQ 2.750 5.125 12/1/2020
PaperWorks Industries Inc PAPWRK 9.500 54.750 8/15/2019
PaperWorks Industries Inc PAPWRK 9.500 54.750 8/15/2019
Pernix Therapeutics
Holdings Inc PTX 4.250 43.101 4/1/2021
Pernix Therapeutics
Holdings Inc PTX 4.250 43.101 4/1/2021
PetroQuest Energy Inc PQUE 10.000 46.500 2/15/2021
PetroQuest Energy Inc PQUE 10.000 46.625 2/15/2021
Powerwave Technologies Inc PWAV 2.750 0.133 7/15/2041
Powerwave Technologies Inc PWAV 1.875 0.133 11/15/2024
Powerwave Technologies Inc PWAV 1.875 0.133 11/15/2024
QCP SNF West/Central/
East/AL REIT LLC QCPSNF 8.125 109.167 11/1/2023
Renco Metals Inc RENCO 11.500 29.000 7/1/2003
Rex Energy Corp REXX 8.000 11.750 10/1/2020
Rex Energy Corp REXX 8.875 2.064 12/1/2020
Rex Energy Corp REXX 6.250 0.783 8/1/2022
Rex Energy Corp REXX 8.000 18.730 10/1/2020
Rolta LLC RLTAIN 10.750 20.000 5/16/2018
SandRidge Energy Inc SD 7.500 0.385 2/15/2023
Sears Holdings Corp SHLD 6.625 92.673 10/15/2018
Sears Holdings Corp SHLD 8.000 38.048 12/15/2019
Sears Holdings Corp SHLD 6.625 92.585 10/15/2018
Sears Holdings Corp SHLD 6.625 92.585 10/15/2018
Sempra Texas Holdings Corp TXU 5.550 10.352 11/15/2014
SiTV LLC / SiTV Finance Inc NUVOTV 10.375 57.891 7/1/2019
SiTV LLC / SiTV Finance Inc NUVOTV 10.375 57.380 7/1/2019
TerraVia Holdings Inc TVIA 5.000 4.644 10/1/2019
TerraVia Holdings Inc TVIA 6.000 4.644 2/1/2018
Tesla Energy
Operations Inc/DE SCTY 2.650 83.547 11/5/2018
Toys R Us - Delaware Inc TOY 8.750 3.648 9/1/2021
Transworld Systems Inc TSIACQ 9.500 26.000 8/15/2021
Transworld Systems Inc TSIACQ 9.500 26.000 8/15/2021
Walter Energy Inc WLTG 9.875 0.834 12/15/2020
Walter Energy Inc WLTG 8.500 0.834 4/15/2021
Walter Energy Inc WLTG 9.875 0.834 12/15/2020
Walter Energy Inc WLTG 9.875 0.834 12/15/2020
Westmoreland Coal Co WLBA 8.750 27.959 1/1/2022
Westmoreland Coal Co WLBA 8.750 27.215 1/1/2022
iHeartCommunications Inc IHRT 14.000 12.750 2/1/2021
iHeartCommunications Inc IHRT 14.000 12.656 2/1/2021
iHeartCommunications Inc IHRT 14.000 12.656 2/1/2021
*********
Monday's edition of the TCR delivers a list of indicative prices
for bond issues that reportedly trade well below par. Prices are
obtained by TCR editors from a variety of outside sources during
the prior week we think are reliable. Those sources may not,
however, be complete or accurate. The Monday Bond Pricing table
is compiled on the Friday prior to publication. Prices reported
are not intended to reflect actual trades. Prices for actual
trades are probably different. Our objective is to share
information, not make markets in publicly traded securities.
Nothing in the TCR constitutes an offer or solicitation to buy or
sell any security of any kind. It is likely that some entity
affiliated with a TCR editor holds some position in the issuers
public debt and equity securities about which we report.
Each Tuesday edition of the TCR contains a list of companies with
insolvent balance sheets whose shares trade higher than $3 per
share in public markets. At first glance, this list may look like
the definitive compilation of stocks that are ideal to sell short.
Don't be fooled. Assets, for example, reported at historical cost
net of depreciation may understate the true value of a firm's
assets. A company may establish reserves on its balance sheet for
liabilities that may never materialize. The prices at which
equity securities trade in public market are determined by more
than a balance sheet solvency test.
On Thursdays, the TCR delivers a list of recently filed
Chapter 11 cases involving less than $1,000,000 in assets and
liabilities delivered to nation's bankruptcy courts. The list
includes links to freely downloadable images of these small-dollar
petitions in Acrobat PDF format.
Each Friday's edition of the TCR includes a review about a book of
interest to troubled company professionals. All titles are
available at your local bookstore or through Amazon.com. Go to
http://www.bankrupt.com/books/to order any title today.
Monthly Operating Reports are summarized in every Saturday edition
of the TCR.
The Sunday TCR delivers securitization rating news from the week
then-ending.
TCR subscribers have free access to our on-line news archive.
Point your Web browser to http://TCRresources.bankrupt.com/and use
the e-mail address to which your TCR is delivered to login.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter is a daily newsletter co-published
by Bankruptcy Creditors Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA.
Jhonas Dampog, Marites Claro, Joy Agravante, Rousel Elaine
Tumanda, Valerie Udtuhan, Howard C. Tolentino, Carmel Paderog,
Meriam Fernandez, Joel Anthony G. Lopez, Cecil R. Villacampa,
Sheryl Joy P. Olano, Psyche A. Castillon, Ivy B. Magdadaro, Carlo
Fernandez, Christopher G. Patalinghug, and Peter A. Chapman, Editors.
Copyright 2018. 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.
*** End of Transmission ***