/raid1/www/Hosts/bankrupt/TCR_Public/131128.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Thursday, November 28, 2013, Vol. 17, No. 330
Headlines
30DC INC: Delays Form 10-Q for Third Quarter
92 VANDERBILT: Case Summary & 7 Unsecured Creditors
AABCO BARRICADE: Voluntary Chapter 11 Case Summary
AFFIRMATIVE INSURANCE: Posts $47.6 Million Net Income in Q3
AGFEED INDUSTRIES: $45MM Sale of Chinese Assets Gets Judge's OK
ALION SCIENCE: Intends to Refinance Existing Credit Facilities
ALL AMERICAN PET: Delays Form 10-Q for Third Quarter
ALLIANT HOLDINGS: Revised Critera Puts S&P Ratings on Watch Neg.
ALLIED DEFENSE: Initial Distribution by Mid-December
ALLIED SYSTEMS: Yucaipa Asks NY Court to Restore Credit Agreement
ALLY FINANCIAL: Issues 50,000 Add'l Common Shares to Investors
AMERICAN AIRLINES: Bankr. Court OKs DoJ Merger Suit Settlement
AMERICAN AIRLINES: Proposes to Hire Baker Botts as Special Counsel
AMERICAN AIRLINES: American Eagle, HTL Ink Agreement
AMERICAN PETRO-HUNTER: Incurs $1.5 Million Net Loss in Q3
ARINC INC: S&P Retains 'B+' Corp Credit Rating on Watch Positive
AS SEEN ON TV: Incurs $10.8 Million Net Loss in Sept. 30 Qtr.
ASR CONSTRUCTORS: Court Okays Hiring of Accountant
ASR CONSTRUCTORS: Hires Shulman Hodges as Bankruptcy Counsel
ASR CONSTRUCTORS: Drops Bid to Employ Younger & Assoc. as Counsel
ASSURED PHARMACY: Extends Expiration of Tender Offer to Nov. 29
AUTO ORANGE II: Files Chapter 11 Petition in California
BAKERSFIELD GROVE: Hearing to Dismiss Case Set for Dec. 17
BERRY PLASTICS: Mark Miles Replaces Jim Kratochvil as CFO
BG MEDICINE: Appoints Stephen Hall as Chief Financial Officer
BIOZONE PHARMACEUTICALS: Incurs $5.3 Million Net Loss in 3rd Qtr.
BROADWAY FINANCIAL: Receives $199,951 Award From U.S. Treasury
C&K MARKET: Taps Edward Hostmann as Chief Restructuring Officer
C&K MARKET: Hires Kieckhafer Schiffer as Advisors
C&K MARKET: Employs Henderson Bennington as Accountants
CAESARS ENTERTAINMENT: Board OKs $100,000 Payment to Executive
CASEY ANTHONY: Settlement Reached with Texas Equusearch
CELL THERAPEUTICS: Partners with Baxter to Develop Pacritinib
CELL THERAPEUTICS: To Discuss Baxter Agreement with Investors
CENGAGE LEARNING: Disclosure Approval Sets Stage for Confirmation
CHILE MINING: Asher Enterprises Held 9.9% Stake as of Nov. 15
CHINA GINSENG: Incurs $256,000 Net Loss in Sept. 30 Quarter
CHINA TELETECH: Delays Form 10-Q for Third Quarter
CHRISTIAN BROTHERS: Court OKs Deal Expanding Scope of Mediation
CHRISTIAN BROTHERS: Panel Okayed to Retain Abuse Claims Reviewer
CLOUD MEDICAL: Newly Filed Q4 2011 Report Shows $51,000 Loss
COMMUNITY HOME: Court Okays Wells Marble's Withdrawal as Counsel
COMPETITIVE TECHNOLOGIES: Incurs $602,000 Net Loss in 3rd Quarter
COMPREHENSIVE CARE: CFO Departure Delays Form 10-Q Filing
CORUS BANKSHARES: To Pay $246MM to Settle FDIC Tax Dispute
CREATION'S GARDEN: Files Chapter 11 Petition in California
CREATION'S GARDEN: Seeks Authority to Obtain $364,000 from BOTW
CREATION'S GARDEN: Seeks Authority to Use Cash Collateral
CREATION'S GARDEN: Employs Levene Neale as Bankruptcy Counsel
CRYOPORT INC: Incurs $14.9 Million Net Loss in Fiscal 2nd Qtr.
DETROIT, MI: Bond Insurers Want Committee to Sell Art Museum
DETROIT, MI: Retirees Drop Objection to Interest-Rate Swap Deal
DETROIT, MI: Buffett Says Right Plan Would Restore Market for Debt
DEVON HEALTH: Voluntary Chapter 11 Case Summary
DREIER LLP: May Hire GCG Inc. as Solicitation and Admin. Agent
ELCOM HOTEL & SPA: Court OKs Stoneleigh-Led Auction on Dec. 4
ELCOM HOTEL & SPA: Files Revised Disclosure Statement
ENNIS COMMERCIAL: Ben Ennis Trustee's Bid as Manager Has Objection
ENOVA SYSTEMS: Incurs $353,000 Net Loss in Third Quarter
ENTERPRISE CHARTER: Fitch Slashes $7.3MM Bonds Rating to 'B'
EXCEL MARITIME: Reaches Deal on Modified Reorganization Plan
FANNIE MAE: Pershing Square Held 9.9% Equity Stake at Nov. 15
FINJAN HOLDINGS: Presents at IP Business Congress Asia Conference
FISKER AUTOMOTIVE: Aims to Sell and Confirm Plan by Jan. 3
FISKER AUTOMOTIVE: Gets Interim OK for $8-Mil. DIP Loan
FISKER AUTOMOTIVE: Case Summary & 35 Largest Unsecured Creditors
FLORIDA GAMING: Fronton Looks Toward March 25 Auction
FOX TROT: Amends List of 20 Largest Unsecured Creditors
FPC HOLDINGS: Moody's Cuts CFR & Sec. Term Loan Rating to B3
FREESEAS INC: Shareholders Elect Two Directors
FX CONCEPTS: Seeks to Sell Assets to Ruby Commodities
GATEHOUSE MEDIA: Completes Restructuring, Exits Chapter 11
GLOBAL SCRAP: Case Summary & 20 Largest Unsecured Creditors
GLYECO INC: Incurs $1.5 Million Net Loss in Third Quarter
GMX RESOURCES: Oneok to Continue Transporting Gas
GORDON PROPERTIES: Dec. 3 Hearing on Bid to Borrow From Owners
GRAND CENTREVILLE: Sohn, Kang and Debtor Oppose Dismissal Motion
HALLWOOD GROUP: Incurs $633,000 Net Loss in Third Quarter
HAWAII OUTDOOR: KDC Files Proposed Plan and Disclosures
HCSB FINANCIAL: Delays Form 10-Q for Third Quarter
HOYT TRANSPORATION: Dec. 19 Hearing on Exclusivity Extensions
IMPLANT SCIENCES: Intends to Refile Sept. 30 Quarter Form 10-Q
KAHN FAMILY: Has Until Dec. 20 to File Reorganization Plan
KSL MEDIA: Says Committee Can't Hire Pachulski as Counsel
KSL MEDIA: Terms of Landau Gottfried Hiring Modified
LAGUNA BRISAS: CBRE Approved as Real Estate Broker
LAGUNA BRISAS: Receiver Can Access Cash Collateral Until Jan. 31
LB HOLDINGS: Case Summary & 9 Largest Unsecured Creditors
LEHMAN BROTHERS: Wants Saphir Finance's Claims Disallowed
LEHMAN BROTHERS: LBI Wants to Disallow $35.6-Mil. in Claims
LEHMAN BROTHERS: Cowen's Fund Expects to Recover LBIE Claims
LEVEL 3: Completes Offering $640 Million of Senior Notes
LEVEL 3: Unit Offering $300 Million Floating Rate Notes
LIBERTY HARBOR: SWJ Management Says Ch. 11 Plan "Unconfirmable"
LIGHTSQUARED INC: Dish Moves to Toss Newest Lawsuit
MARINA DISTRICT FINANCE: Fitch Keeps 'B-' Issuer Default Rating
MF INVESTMENT: Americas Bullion Agrees to Cash Settlement
MICROVISION INC: Elects Thomas Walker as Director
MONARCH COMMUNITY: Incurs $754,000 Net Loss in Third Quarter
MSD PERFORMANCE: Gets Nod for $78-Mil. Sale to PE Firm
MUSCLEPHARM CORP: Says No Need to Amend Financial Statements
N-VIRO INTERNATIONAL: Incurs $258,000 Net Loss in Third Quarter
NATIONAL HOLDINGS: Mark D. Klein Held 8.6% Stake at June 7
NATIONAL PLANNING: Ordered to Pay $6.2-Mil. for Losses
NET ELEMENT: Incurs $3.8 Million Net Loss in Third Quarter
NORTHCORE TECHNOLOGIES: Incurs C$267,000 Net Loss in 3rd Quarter
NORTH TEXAS BANCSHARES: Park Cities Bank Auction Set for Dec. 9
OCZ TECHNOLOGY: Toshiba Offers to Buy Assets in Bankruptcy
OGX PETROLEO: Talks With Bondholders Have Advanced
OHANA GROUP: W. Fargo Opposes Exclusivity Extension Beyond Dec. 10
OHANA GROUP: Amends Disclosures for Reorganization Plan
ORAGENICS INC: Sells $11 Million Worth of Common Shares
PACIFIC FUNDING: Case Summary & 4 Unsecured Creditors
PANACHE BEVERAGE: Incurs $1.5 Million Net Loss in Third Quarter
PEER REVIEW: Delays Form 10-Q for Third Quarter
PETTIT OIL: Fuel Distributor Files Chapter 11 in Washington State
PETROGLOBE INC: Voluntary Assignment in Bankruptcy in Canada
PLUG POWER: Incurs $16 Million Net Loss in Third Quarter
PRESIDENTIAL REALTY: Posts $4 Million Net Income in 3rd Quarter
PRIVATE MEDIA: Delays Form 10-Q for Third Quarter
QUICKSILVER RESOURCES: Borrowing Base Reaffirmed at $350 Million
RADIOSHACK CORP: Tom Plaskett Retires From Board of Directors
RESIDENTIAL CAPITAL: Objection to La Casse $37MM Claims Sustained
RESIDENTIAL CAPITAL: Split in Phase 1 of Trial vs. Noteholders
RESIDENTIAL CAPITAL: Noteholders Appeal Approval of FGIC Deal
RICEBRAN TECHNOLOGIES: To Effect a 1-for-200 Reverse Stock Split
RIVER CREE: S&P Assigns 'B+' CCR & Rates C$200MM Notes 'B-'
SB PARTNERS: Incurs $1.1 Million Net Loss in 2012
SCOTTSDALE CINEMA: Voluntary Chapter 11 Case Summary
SECUREALERT INC: Sapinda Asia Held 46.2% Stake at Nov. 5
SECUREALERT INC: Conrent Invest Held 5.7% Stake at Oct. 31
SECUREALERT INC: Borinquen Holds Less Than 1% of Common Shares
SELECT TREE: May Employ Rita Pope and Realty USA.com as Brokers
SEVEN ARTS: Incurs $1.6 Million Net Loss in Sept. 30 Quarter
SIERRA NEGRA: Court Confirms Plan of Reorganization
SILENT W PROPERTIES: Case Summary & 4 Unsecured Creditors
SONGA OFFSHORE: Unveils Results of Share & Convertible Bond Issue
SOTERA DEFENSE: S&P Cuts CCR to 'CCC' on Covenant Violation
SPIRE CORP: Incurs $2.2 Million Net Loss in Third Quarter
SUMTOTAL SYSTEMS: Moody's Affirms B2 CFR & Changes Outlook to Neg
SUNRISE REAL ESTATE: Delays Form 10-Q for Third Quarter
SUPERIOR PLUS: New Criteria Cues S&P Ratings on Watch
T3 MOTION: Incurs $4.3 Million Net Loss in Third Quarter
TECHPRECISION CORP: Incurs $818,600 Net Loss in Fiscal Q2 2014
TEXAS STATE AFFORDABLE: S&P Retains 'CC' Rating on Watch Negative
TMT GROUP: Creditor Seeks Bankruptcy Court's Nod to Sell Ship
TLO LLC: LexisNexis Says Auction Cutoff Thwarted $180-Mil. Bid
TOUSA INC: Jefferies, Castle Creek Defend Bid to Nix WTC Appeal
TRISTAR WELLNESS: Incurs $2.7 Million Net Loss in Third Quarter
UNITED AMERICAN: Delays Form 10-Q for Sept. 30 Quarter
UNITEK GLOBAL: New Mountain, et al., to Sell 3.7MM Common Shares
UNIVERSITY GENERAL: Delays Form 10-Q for Third Quarter
URBAN AG: Incurs $536,000 Net Loss in Third Quarter
USG CORP: To Redeem $325 Million of Convertible Senior Notes
UTE MESA: Filing Lis Pendens Isn't Voidable as Preference
VELTI PLC: To Voluntarily Delist Ordinary Shares From NASDAQ
VERITY CORP: Promotes Rick Kamolvathin to CEO; Spader Resigns
VERTIS HOLDINGS: Gets Plan-Filing Exclusivity Extended to Feb. 3
VILLAGE AT KNAPPS: U.S. Trustee Drops Case Conversion Bid
VILLAGE AT KNAPPS: Amends List of 20 Largest Unsecured Creditors
VYCOR MEDICAL: Incurs $507,000 Net Loss in Third Quarter
WAFERGEN BIO-SYSTEMS: Reports $12.2 Million Net Loss in Q3
WALKER & DUNLOP: S&P Rates $175MM Sr. Secured Loan 'BB-'
WALLDESIGN INC: Panel Can Retain Landau Gottfried as Lit. Counsel
WATERFORD GAMING: Refinancing No Effect on Moody's Ratings
WESTERN FUNDING: BMO, Others Object to FTI Employment
WORLD IMPORTS: Can Access Bank's Cash Collateral Until Dec. 20
WVSV HOLDINGS: Hearing on Rival Plans Continued to Dec. 9
WYLDFIRE ENERGY: Trustee Wants Combined Hearing to Approve Plan
Z TRIM HOLDINGS: Incurs $2.5 Million Net Loss in Third Quarter
Z TRIM HOLDINGS: Closes $1.4 Million Public Offering
ZUERCHER TRUST: Coleman Frost Relieved From Working on Case
ZUERCHER TRUST: Dec. 5 Hearing on Employment of Madison Partners
* IRS-Blessed Retirement Plan Part of Ch. 7 Estate, Says 1st Circ.
* Study Finds 2005 Code Reform Reduced Recoveries
* Supreme Court Takes on Third Bankruptcy Case This Term
* Fitch Says NJ Casino Market "Supply-Demand Imbalance" Remains
* Foreclosure Auction Sales & Bank-Owned Sales Up in October 2013
* Foreign Companies Push Defaults Higher This Year
* Revised Critera Puts S&P Ratings on 57 US Cos. on Watch Negative
* Volatile Loan Securities Are Luring Fund Managers Again
* Recent Small-Dollar & Individual Chapter 11 Filings
*********
30DC INC: Delays Form 10-Q for Third Quarter
--------------------------------------------
30 DC, Inc., filed with the U.S. Securities and Exchange
Commission a Notification of Late Filing on Form 12b-25 with
respect to its quarterly report on Form 10-Q for the quarter ended
Sept. 30, 2013. The Company said it was unable, without
unreasonable effort and expense, to prepare its accounting
records and schedules in sufficient time to allow its accountants
to complete their review of the Company's financial statements for
the period ended Sept. 30, 2013, before the required filing date
for the subject Quarterly Report on Form 10-Q. The Company
intends to file the subject Quarterly Report on Form 10-Q on or
before the thirtieth calendar day following the prescribed due
date.
About 30DC Inc.
New York-based 30DC, Inc., provides Internet marketing services
and related training to help Internet companies in operating their
businesses. It operates in two divisions, 30 Day Challenge and
Immediate Edge.
30DC's annual report for the fiscal year ended June 30, 2012,
shows net income of $32,207 on $2.91 million of total revenue as
compared with a net loss of $1.44 million on $1.89 million of
total revenue the year before. The Company's balance sheet at
March 31, 2013, showed $2.84 million in total assets, $2.13
million in total liabilities and $717,251 total stockholders'
equity.
Marcum LLP, in New York, issued a "going concern" qualification on
the consolidated financial statements for the year ended June 30,
2012. The independent auditors noted that the Company has a
working capital deficit and stockholders' deficiency as of
June 30, 2012.
92 VANDERBILT: Case Summary & 7 Unsecured Creditors
----------------------------------------------------
Debtor: 92 Vanderbilt Avenue Inc.
1621 East 31st Street
Brooklyn, NY 11234
Case No.: 13-13841
Chapter 11 Petition Date: November 26, 2013
Court: United States Bankruptcy Court
Southern District of New York (Manhattan)
Judge: Hon. Sean H. Lane
Debtor's Counsel: David H. Leventhal, Esq.
LAW OFFICE OF DAVID H. LEVENTHAL
188 Ludlow St, Suite 3G
New York, NY 10002
Tel: (212)729-3179
Fax: (253)423-3179
Email: david@dhllawfirm.com
Total Assets: $1.70 million
Total Liabilities: $3.40 million
The petition was signed by Edward Doran, vice president.
A list of the Debtor's seven largest unsecured creditors is
available for free at http://bankrupt.com/misc/nysb13-13841.pdf
AABCO BARRICADE: Voluntary Chapter 11 Case Summary
--------------------------------------------------
Debtor: AABCO Barricade Inc
4025 80th St. SW
Mukilteo, WA 98275
Case No.: 13-20242
Chapter 11 Petition Date: November 22, 2013
Court: United States Bankruptcy Court
Western District of Washington (Seattle)
Judge: Hon. Timothy W. Dore
Debtor's Counsel: Martin E. Snodgrass, Esq.
3302 Oakes Ave
Everett, WA 98201
Tel: 425-783-0797
Email: mes@snodgrasslaw.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by David Michaels, vice president.
The Debtor did not file a list of its largest unsecured creditors
when it filed the petition.
AFFIRMATIVE INSURANCE: Posts $47.6 Million Net Income in Q3
-----------------------------------------------------------
Affirmative Insurance Holdings, Inc., reported net income of
$47.61 million on $53.31 million of total revenues for the three
months ended Sept. 30, 2013, as compared with a net loss of $29.45
million on $51.15 million of total revenues for the same period
during the prior year.
For the nine months ended Sept. 30, 2013, the Company reported net
income of $42.85 million on $189.90 million of total revenues as
compared with a net loss of $43.63 million on $154.36 million of
total revenues for the same period year ago.
The Company's balance sheet at Sept. 30, 2013, showed $386.03
million in total assets, $476.73 million in total liabilities and
a $90.70 million total stockholders' deficit.
Michael McClure, chief executive officer, stated, "The sale of our
retail operations and the refinancing of our senior debt on
September 30, 2013 were significant events in the Company's
history. While we have made many improvements from an operational
standpoint, we still have many areas and opportunities to address.
We are determined to continue to improve the profitability of the
business. We are continuing to see either very good or improving
conditions in a number of our states. We believe our actions
along with the improved operating environment will continue to
improve our operating results as we move forward."
A copy of the press release is available for free at:
http://is.gd/j3NdDb
About Affirmative Insurance
Addison, Tex.-based Affirmative Insurance Holdings, Inc., is a
distributor and producer of non-standard personal automobile
insurance policies for individual consumers in targeted geographic
markets. Non-standard personal automobile insurance policies
provide coverage to drivers who find it difficult to obtain
insurance from standard automobile insurance companies due to
their lack of prior insurance, age, driving record, limited
financial resources or other factors. Non-standard personal
automobile insurance policies generally require higher premiums
than standard automobile insurance policies for comparable
coverage.
For the six months ended June 30, 2013, the Company reported a net
loss of $4.76 million on $136.59 million of total revenues, as
compared with a net loss of $14.17 million on $103.21 million of
total revenues for the same period during the prior year.
AGFEED INDUSTRIES: $45MM Sale of Chinese Assets Gets Judge's OK
---------------------------------------------------------------
Law360 reported that a Delaware bankruptcy judge gave the nod on
Nov. 26 for hog grower AgFeed Industries Inc. to sell its Chinese
assets to Hong Kong firm Good Charm International Development Ltd.
in a deal that is expected to net the debtor $45 million once
several highly negotiated price adjustments are factored in.
According to the report, U.S. Bankruptcy Judge Brendan L. Shannon
said he would approve the deal, after hearing proffered testimony
and oral argument detailing two days of negotiation with the buyer
that resulted in a $3 million reduction to the sale.
About AgFeed Industries
AgFeed Industries, Inc., has 21 farms and five feed mills in China
producing more than 250,000 hogs annually. In the U.S., the
business included 10 sow farms in three states and two feed mills
producing more than one million hogs a year. AgFeed's revenue in
2012 was $244 million.
AgFeed and its affiliates filed voluntary petitions under Chapter
11 of the Bankruptcy Code (Bankr. D. Del. Case No. 13-11761) on
July 15, 2013, with a deal to sell most of its subsidiaries to The
Maschhoffs, LLC, for cash proceeds of $79 million, absent higher
and better offers. The Debtors estimated assets of at least $100
million and debts of at least $50 million.
Keith A. Maib signed the petition as chief restructuring officer.
Hon. Brendan Linehan Shannon presides over the case. Donald J.
Bowman, Jr., and Robert S. Brady, Esq., at Young, Conaway,
Stargatt & Taylor, serve as the Debtors' counsel. BDA Advisors
Inc. acts as the Debtors' financial advisor. The Debtors' claims
and noticing agent is BMC Group, Inc.
The U.S. Trustee has appointed a five-member official committee of
unsecured creditors to the Chapter 11 cases. The Creditors'
Committee tapped Lowenstein Sandler as lead bankruptcy counsel and
Greenberg Traurig, LLP, as co-counsel. CohnReznick LLP serves as
the Creditors' Committee's financial advisor.
An official committee of equity security holders was also
appointed to the Chapter 11 cases. The Equity Committee tapped
Sugar Felsenthal Grais & Hammer LLP and Elliott Greenleaf as
co-counsel.
ALION SCIENCE: Intends to Refinance Existing Credit Facilities
--------------------------------------------------------------
Alion Science and Technology Corporation has reached a preliminary
understanding with the holders of a majority of the Company's
outstanding 10 1?4 Percent Senior Notes due Feb. 1, 2015,
regarding possible refinancing transactions involving the
Company's outstanding indebtedness. The Company currently expects
the transactions to involve:
* The replacement of the Company's existing revolving credit
facility with a new revolving credit facility;
* The refinancing of the Company's outstanding 12 Percent
Senior Secured Notes due 2014 with new $350 million senior
secured term loan debt or new senior secured notes;
* The exchange of the Unsecured Notes for, at the Unsecured
Note holders' option, either (a) new junior secured notes,
with a combination of interest payable in cash and in kind,
and new warrants or (b) an amount of cash at a price to be
determined below par;
* The payment of accrued and unpaid interest on the Senior
Secured Notes and the Unsecured Notes; and
* The seeking of consents from the holders of the Unsecured
Notes to eliminate substantially all of the covenants and
events of default in the indenture governing the Unsecured
Notes.
Although the Company has a preliminary understanding with the
Majority Holders, there can be no assurance that the Company and
the Majority Holders will reach a final agreement, that the
Company will enter into definitive agreements, that a sufficient
amount of the other holders of the Unsecured Notes will agree to
participate in such a transaction, that the Company will be
successful at obtaining a new revolving credit facility or
refinancing the Senior Secured Notes or that any transaction will
occur on all or any of the terms, and, if any transaction does
occur, that the terms concluded will be favorable to the Company's
existing investors.
The Company is continuing its refinancing efforts. The Company
may engage from time to time in discussions with other creditors
of the Company, other holders of the Unsecured Notes, and holders
of the Senior Secured Notes as well as with advisors to those
creditors and holders.
Preliminary Results
The Company expects revenue for its fiscal year ended Sept. 30,
2013, to be in the range of $845 - $850 million, with Consolidated
EBITDA in the range of $69 - $71 million. The Company also
disclosed that it expects its balance sheet as of Sept. 30, 2013,
to be generally consistent with the previously reported FY 2013
third quarter balance sheet. The Company also disclosed that it
may realize a modest retraction of revenue and Consolidated EBITDA
growth with respect to the fourth quarter of FY 2013 stemming
from, among other things, delays in funding and new contract
awards due to sequestration and concerns about the then pending
government shutdown.
Code of Ethics Amendment
On Nov. 11, 2013, the Corporate Governance and Compliance
Committee of the Board of Directors of Alion Science and
Technology Corporation adopted the Alion Code of Ethics, Conduct
and Responsibility dated November 2013, which amends and restates
in its entirety the Company's Code dated November 2012. The 2013
Edition amends and restates the 2012 Edition, among other things,
to provide greater emphasis and clarity of evolving legal and
regulatory requirements. A copy of the 2013 Edition is
available for free at http://is.gd/4cVhL1
About Alion Science
Alion Science and Technology Corporation, based in McLean,
Virginia, is an employee-owned company that provides scientific
research, development, and engineering services related to
national defense, homeland security, and energy and environmental
analysis. Particular areas of expertise include communications,
wireless technology, netcentric warfare, modeling and simulation,
chemical and biological warfare, program management.
Alion Science incurred a net loss of $41.44 million for the year
ended Sept. 30, 2012, a net loss of $44.38 million for the year
ended Sept. 30, 2011, and a net loss of $15.23 million for the
year ended Sept. 30, 2010. As of June 30, 2013, the Company had
$632.86 million in total assets, $799.58 million in total
liabilities, $111.01 million in redeemable common stock, $20.78
million in common stock warrants, $149,000 in accumulated other
comprehensive loss and a $298.37 million accumulated deficit.
Bankruptcy Warning
The Company said in its annual report for the fiscal year ended
Sept. 30, 2012, "Our credit arrangements, including our unsecured
and secured note indentures and our revolving credit facility
include a number of covenants. We expect to be able to comply
with our indenture covenants and our credit facility financial
covenants for at least the next twenty-one months. If we were
unable to meet financial covenants in our revolving credit
facility in the future, we might need to amend the revolving
credit facility on less favourable terms. If we were to default
under any of the revolving credit facility covenants, we could
pursue an amendment or waiver with our existing lenders, but there
can be no assurance that lenders would grant an amendment or
waiver. In light of current credit market conditions, any such
amendment or waiver might be on terms, including additional fees,
increased interest rates and other more stringent terms and
conditions materially disadvantageous to us. If we were unable to
meet these financial covenants in the future and unable to obtain
future covenant relief or an appropriate waiver, we could be in
default under the revolving credit facility. This could cause all
amounts borrowed under it and all underlying letters of credit to
become immediately due and payable, expose our assets to seizure,
cause a potential cross-default under our indentures and possibly
require us to invoke insolvency proceedings including, but not
limited to, a voluntary case under the U.S. Bankruptcy Code."
ALL AMERICAN PET: Delays Form 10-Q for Third Quarter
----------------------------------------------------
All American Pet Company, Inc., filed with the U.S. Securities and
Exchange Commission a Notification of Late Filing on Form 12b-25
with respect to its quarterly report on Form 10-Q for the quarter
ended Sept. 30, 2013. The Company said its Quarterly Report on
Form 10-Q for the period ended Sept. 30, 2013, could not be
completed and filed within the prescribed time period without
unreasonable effort or expense because additional time is required
by the Company to compile underlying data and complete its
financial statements. The Company expects to file Form 10-Q as
soon as practicable and within the five day extension period
provided under Rule 12b-25 promulgated under the Securities
Exchange Act of 1934, as amended.
About All American Pet
Los Angeles-based All American Pet Company, Inc., develops and
markets innovative first-to-market pet wellness products including
super-premium dog food bars, dog food snacks and antibacterial paw
wipes.
"The Company has incurred consistent losses, limited liquid
assets, significant past due debts, and has a stockholders'
deficit. According to the Company, these conditions, among
others, raise substantial doubt as to its ability to continue as a
going concern," according to the Company's quarterly report for
the period ended March 31, 2013.
The Company's balance sheet at June 30, 2013, showed $3.14 million
in total assets, $5.57 million in total liabilities and a $2.43
million total stockholders' deficit.
ALLIANT HOLDINGS: Revised Critera Puts S&P Ratings on Watch Neg.
----------------------------------------------------------------
Standard & Poor's Ratings Services said that it has reviewed its
ratings on the corporate industrial and utility companies that
were labeled as "under criteria observation" (UCO) after the
publishing of its revised corporate criteria on Nov. 19. The
ratings on 57 U.S. corporate entities were placed on CreditWatch
with positive implications as a result of this review, meaning
that they will likely be raised. At the same time, the ratings on
15 U.S. corporate entities were placed on CreditWatch with
negative implications, meaning that they will likely be lowered.
Over the weeks that follow, S&P will publish individual analytical
reports on the companies identified below to resolve these
CreditWatch listings.
With the completion of S&P's review, it will be removing the UCO
label on all corporate ratings. This includes those ratings that
we did not place on CreditWatch.
RATINGS LIST
US Issuer Ratings Placed On Watch Due To Revised Corp. Criteria
To From
3M Co.
Long-term rating AA-/Watch Pos/-- AA-/Stable/--
Short-term rating A-1+ A-1+
ACI Worldwide Inc. BB-/Watch Pos/-- BB-/Positive/--
Acuity Brands Inc. BBB-/Watch Pos/-- BBB-/Pos./--
Adobe Systems Inc. BBB+/Watch Pos/-- BBB+/Stable/--
Alabama Gas Corp. BBB/Watch Neg/-- BBB/Stable/--
Alaska Air Group Inc. BB/Watch Pos/-- BB/Stable/--
Alliant Holdings I LLC B-/Watch Pos/-- B-/Positive/--
Altera Corp. BBB+/Watch Pos/-- BBB+/Stable/--
Amsted Industries Inc. BB-/Watch Pos/-- BB-/Stable/--
Arizona Public Service Co. BBB+/Watch Pos/A-2 BBB+/Stable/A-2
B&G Foods Inc. B+/Watch Pos/-- B+/Stable/--
Cascade Natural Gas Corp. BBB+/Watch Neg/-- BBB+/Stable/--
CDW LLC B+/Watch Pos/-- B+/Stable/--
Chevron Phillips Chemical
Co. LLC BBB+/Watch Pos/A-2 BBB+/Stable/A-2
Cisco Systems Inc.
Long-term rating A+/Watch Pos/-- A+/Stable/--
Short-term rating A-1+ A-1+
CITGO Petroleum Corp. BB-/Watch Neg/-- BB-/Stable/--
Corning Inc. BBB+/Watch Pos/A-2 BBB+/Pos/A-2
CSG Systems Int'l. Inc. BB/Watch Pos/-- BB/Stable/--
Deer Park Refining L.P. A/Watch Neg/A-1 A/Stable/A-1
Delphi Automotive PLC BB+/Watch Pos/-- BB+/Positive/--
Delta Air Lines Inc. B+/Watch Pos/-- B+/Stable/--
Diamond Offshore Drilling Inc. A-/Watch Pos/-- A-/Stable/--
EMCOR Group Inc. BB+/Watch Pos/-- BB+/Stable/--
Energen Corp. BBB/Watch Neg/-- BBB/Stable/--
Estee Lauder Cos. Inc. (The) A/Watch Pos/A-1 A/Stable/A-1
Flint Hills Resources LLC
Long-term rating A+/Watch Pos/-- A+/Stable/--
Short-term rating A-1+ A-1+
FLIR Systems Inc. BBB-/Watch Pos/-- BBB-/Stable/--
Georgia-Pacific LLC A/Watch Pos/A-1 A/Stable/A-1
Green Mountain Power Corp. BBB/Watch Pos/-- BBB/Stable/--
Igloo Holdings Corp. B/Watch Pos/-- B/Stable/--
Ikaria Inc. B/Watch Neg/-- B/Stable/--
Indianapolis Power & Light Co. BBB-/Watch Neg/-- BBB-/Stable/--
Integra Telecom Inc. B/Watch Pos/-- B/Stable/--
Int'l. Transmission Co. BBB+/Watch Pos/-- BBB+/Stable/--
INVISTA B.V. BBB-/Watch Neg/-- BBB-/Stable/--
IPALCO Enterprises Inc. BBB-/Watch Neg/-- BBB-/Stable/--
ITC Great Plains LLC BBB+/Watch Pos/-- BBB+/Stable/--
ITC Holdings Corp. BBB+/Watch Pos/-- BBB+/Stable/--
ITC Midwest LLC BBB+/Watch Pos/-- BBB+/Stable/--
Kaman Corp. BBB-/Watch Neg/-- BBB-/Stable/--
Laboratory Corp. of
America Holdings BBB/Watch Pos/-- BBB/Stable/--
Macy's Inc. BBB/Watch Pos/-- BBB/Stable/--
MedAssets Inc. B+/Watch Pos/-- B+/Stable/--
Medtronic Inc.
Long-term rating A+/Watch Pos/-- A+/Stable/--
Short-term rating A-1+ A-1+
Michigan Electric
Transmission Co. BBB+/Watch Pos/-- BBB+/Stable/--
Motiva Enterprises LLC A/Watch Neg/A-1 A/Stable/A-1
National Oilwell Varco Inc. A/Watch Pos/A-1 A/Stable/A-1
Neenah Paper Inc. BB-/Watch Pos/-- BB-/Stable/--
Northern Natural Gas Co. A/Watch Neg/-- A/Negative/--
Pinnacle West Capital Corp. BBB+/Watch Pos/A-2 BBB+/Stable/A-2
Polyone Corp. BB-/Watch Pos/-- BB-/Stable/--
Polypore International Inc. B+/Watch Pos/-- B+/Positive/--
Potlatch Corp. BB+/Watch Pos/-- BB+/Stable/--
Puget Energy Inc. BB+/Watch Pos/-- BB+/Stable/--
Republic Services Inc. BBB/Watch Pos/A-2 BBB/Stable/A-2
Res-Care Inc. B+/Watch Pos/-- B+/Stable/--
Rosetta Resources Inc. B+/Watch Pos/-- B+/Stable/--
Sealed Air Corp. BB-/Watch Pos/-- BB-/Stable/--
SEMCO Energy Inc. BBB/Watch Neg/-- BBB/Stable/--
Shell Energy North
America (US) L.P. A-/Watch Pos/-- A-/Stable/--
Steward Health Care System LLC B/Watch Neg/-- B/Stable/--
Telecommunications Management
LLC (d/b/a NewWave
Communications) B+/Watch Neg/-- B+/Stable/--
TJX Companies Inc. A/Watch Pos/A-1 A/Stable/A-1
Triumph Group Inc. BB/Watch Pos/-- BB/Stable/--
TW Telecom Inc. BB-/Watch Pos/-- BB-/Stable/--
Union Pacific Corp. A-/Watch Pos/A-2 A-/Stable/A-2
United Rentals Inc. B+/Watch Pos/-- B+/Pos./--
Ventas Inc. BBB/Watch Pos/-- BBB/Pos./--
Waste Management Inc. BBB/Watch Pos/A-2 BBB/Stable/A-2
Wisconsin Gas LLC A-/Watch Pos/A-2 A-/Stable/A-2
Wrigley (WM) Jr. Company BBB/Watch Pos/-- BBB/Stable/--
Xerox Corp. BBB-/Watch Pos/A-3 BBB-/Stable/A-3
ALLIED DEFENSE: Initial Distribution by Mid-December
----------------------------------------------------
The Allied Defense Group, Inc., posted to its Web site a letter to
its stockholders updating Allied's progress in implementing its
plan of dissolution. The letter includes Allied's compiled
financial statements for the third quarter of 2013. As set forth
in the stockholder letter, Allied expects to make an initial
distribution to its stockholders by mid-December 2013 in the range
of $5.00 to $5.10 per share. A copy of the stockholder letter is
available for free at http://is.gd/iBmjaf
About The Allied Defense Group
The Allied Defense Group, Inc., based in Baltimore, Maryland,
previously conducted a multinational defense business focused on
the manufacture and sale of ammunition and ammunition related
products for use by the U.S. and foreign governments. Allied's
business was conducted by two wholly owned subsidiaries: MECAR
sprl, formerly MECAR S.A., and ADG Sub USA, Inc., formerly MECAR
USA, Inc.
Plan of Dissolution and Liquidation
On June 24, 2010, the Company signed a definitive purchase and
sale agreement with Chemring Group PLC pursuant to which Chemring
agreed to acquire substantially all of the assets of the Company
for $59,560 in cash and the assumption of certain liabilities. On
Sept. 1, 2010, the Company completed the asset sale to Chemring
contemplated by the Agreement. Pursuant to the Agreement,
Chemring acquired all of the capital stock of Mecar for
approximately $45,810 in cash, and separately Chemring acquired
substantially all of the assets of Mecar USA for $13,750 in cash
and the assumption by Chemring of certain specified liabilities of
Mecar USA. A portion of the purchase price was paid through the
repayment of certain intercompany indebtedness owed to the Company
that would otherwise have been cancelled at closing. $15,000 of
the proceeds of the sale was deposited into escrow to secure the
Company's indemnification obligations under the Agreement.
In conjunction with the Agreement, the Board of Directors of the
Company unanimously approved the dissolution of the Company
pursuant to a Plan of Complete Liquidation and Dissolution. The
Company's stockholders approved the Plan of Dissolution on
Sept. 30, 2010. In response to concerns of certain of the
Company's stockholders, the Company agreed to delay the filing of
a certificate of dissolution with the Delaware Secretary of State.
The Company filed a certificate of dissolution with the Delaware
Secretary of State on Aug. 31, 2011. In connection with this
filing, the Company's stock transfer agent has ceased recording
transfers of the Company's stock and the Company's stock is no
longer publicly traded.
ALLIED SYSTEMS: Yucaipa Asks NY Court to Restore Credit Agreement
-----------------------------------------------------------------
Law360 reported that an attorney for Ron Burkle's private equity
firm The Yucaipa Cos. LLC on Nov. 26 urged a New York state
appeals court to restore a credit agreement at issue in car hauler
Allied Systems Holdings Inc.'s bankruptcy, after a lower court
threw out the deal.
According to the report, Yucaipa's attorney David E. Ross of
Kasowitz Benson Torres & Friedman LLP argued during a hearing in
Manhattan that Judge Charles E. Ramos had gone too far when he
threw out all the changes to a credit agreement.
About Allied Systems
BDCM Opportunity Fund II, LP, Spectrum Investment Partners LP, and
Black Diamond CLO 2005-1 Adviser L.L.C., filed involuntary
petitions for Allied Systems Holdings Inc. and Allied Systems Ltd.
(Bankr. D. Del. Case Nos. 12-11564 and 12-11565) on May 17, 2012.
The signatories of the involuntary petitions assert claims of at
least $52.8 million for loan defaults by the two companies.
Allied Systems, through its subsidiaries, provides logistics,
distribution, and transportation services for the automotive
industry in North America.
Allied Holdings Inc. first filed for chapter 11 protection (Bankr.
N.D. Ga. Case Nos. 05-12515 through 05-12537) on July 31, 2005.
Jeffrey W. Kelley, Esq., at Troutman Sanders, LLP, represented the
Debtors in the 2005 case. Allied won confirmation of a
reorganization plan and emerged from bankruptcy in May 2007
with $265 million in first-lien debt and $50 million in second-
lien debt.
The petitioning creditors said Allied defaulted on payments of
$57.4 million on the first lien debt and $9.6 million on the
second. They hold $47.9 million, or about 20% of the first-lien
debt, and about $5 million, or 17%, of the second-lien obligation.
They are represented by Adam G. Landis, Esq., and Kerri K.
Mumford, Esq., at Landis Rath & Cobb LLP; and Adam C. Harris,
Esq., and Robert J. Ward, Esq., at Schulte Roth & Zabel LLP.
Allied Systems Holdings Inc. formally put itself and 18
subsidiaries into bankruptcy reorganization June 10, 2012,
following the filing of the involuntary Chapter 11 petition.
The Company is being advised by the law firms of Troutman Sanders,
Gowling Lafleur Henderson, and Richards Layton & Finger.
The bankruptcy court process does not include captive insurance
company Haul Insurance Limited or any of the Company's Mexican or
Bermudan subsidiaries. The Company also announced that it intends
to seek foreign recognition of its Chapter 11 cases in Canada.
An official committee of unsecured creditors has been appointed in
the case. The Committee consists of Pension Benefit Guaranty
Corporation, Central States Pension Fund, Teamsters National
Automobile Transporters Industry Negotiating Committee, and
General Motors LLC. The Committee is represented by Sidley Austin
LLP.
Yucaipa Cos. has 55 percent of the senior debt and took the
position it had the right to control actions the indenture trustee
would take on behalf of debt holders. The state court ruled in
March 2013 that the loan documents didn't allow Yucaipa to vote.
In March 2013, the bankruptcy court also gave the official
creditors' committee authority to sue Yucaipa. The suit includes
claims that the debt held by Yucaipa should be treated as equity
or subordinated so everyone else is paid before the Los Angeles-
based owner. The judge allowed Black Diamond to participate in the
lawsuit against Yucaipa and Allied directors.
ALLY FINANCIAL: Issues 50,000 Add'l Common Shares to Investors
--------------------------------------------------------------
Ally Financial Inc. amended the investment agreements associated
with its previously announced private placement of shares of its
common stock, $0.01 par value per share, to increase the number of
shares of Common Stock issued to certain investors in the private
placement by an aggregate of 50,000 shares. The additional shares
of Common Stock will be sold for an aggregate purchase price of
$300 million. Ally expects to receive an aggregate of
approximately $1.3 billion in connection with the private
placement of its Common Stock.
Prior to entering into the amendments, Ally submitted proposals
for those actions and the related transactions to the holders of
Common Stock and Ally's Fixed Rate Cumulative Mandatorily
Convertible Preferred Stock, Series F-2. The stockholders'
consents were provided on Nov. 13, 2013, by stockholders holding a
majority of the outstanding shares of Common Stock, including at
least two holders of Common Stock where required, and the Series
F-2 Preferred Stock.
Moreover, Ally announced that the Board of Governors of the
Federal Reserve System did not object to Ally's revised
Comprehensive Capital Analysis and Review capital plan for 2013,
which was submitted in September 2013.
The non-objection of the Federal Reserve to Ally's CCAR Plan is a
condition to the completion of Ally's previously announced private
placement of shares of Common Stock and Ally's previously
announced repurchase of all outstanding shares of Series F-2
Preferred Stock held by the United States Department of the
Treasury, including payment for the elimination or relinquishment
of any right to receive additional shares of Common Stock to be
issued pursuant to Section 6(a)(i)(B) of the certificate of
designations of the Series F-2 Preferred Stock. The closings for
these transactions are expected to occur on Nov. 20, 2013.
About Ally Financial
Ally Financial Inc., formerly GMAC Inc. -- http://www.ally.com/--
is one of the world's largest automotive financial services
companies. The Company offers a full suite of automotive
financing products and services in key markets around the world.
Ally's other business units include mortgage operations and
commercial finance, and the company's subsidiary, Ally Bank,
offers online retail banking products. Ally operates as a bank
holding company.
GMAC obtained a $17 billion bailout from the U.S. government in
exchange for a 56.3 percent stake. Private equity firm Cerberus
Capital Management LP keeps 14.9 percent, while General Motors Co.
owns 6.7 percent.
Ally Financial Inc. reported net income of $1.19 billion for the
year ended Dec. 31, 2012, as compared with a net loss of $157
million during the prior year.
AMERICAN AIRLINES: Bankr. Court OKs DoJ Merger Suit Settlement
--------------------------------------------------------------
On November 27, 2013, the U.S. Bankruptcy Court for the Southern
District of New York approved the settlement of the lawsuit
reached with the U.S. Department of Justice and certain states
relating to the merger of AMR Corporation and US Airways Group,
Inc. The court also ruled that the merger may be consummated
despite the pendency of a private antitrust lawsuit. As a result
of the Court's rulings, AMR Corporation, the parent company of
American Airlines, Inc., on Nov. 27 filed with the U.S. Bankruptcy
Court for the Southern District of New York a notice that the
proposed effective date of the Plan of Reorganization will be
Dec. 9, 2013.
Consummation of AMR's Plan of Reorganization and the merger of US
Airways Group, Inc. with and into a subsidiary of AMR Corporation
is planned to be completed prior to the securities markets opening
on Dec. 9, 2013. Assuming this expected schedule, the last day of
trading of all outstanding securities of AMR, including the common
stock trading under the symbol "AAMRQ," and the common stock of US
Airways Group, Inc. LCC -0.63% will be Dec. 6, 2013.
Upon the anticipated closing of the merger on Dec. 9, 2013, AMR
Corporation will be renamed American Airlines Group Inc., with its
common stock to be listed and traded on the NASDAQ Global Select
Market under the symbol "AAL" and its preferred stock to be listed
and traded on the NASDAQ Global Select Market under the symbol
"AALCP."
At the time the Plan of Reorganization becomes effective and the
merger closes, each outstanding share of US Airways Group common
stock will be converted into one share of American Airlines Group
Inc. common stock and substantially all pre-Chapter 11 unsecured
claims against and outstanding equity securities of AMR
Corporation will be satisfied by American Airlines Group Inc.
common stock or preferred stock in accordance with the Plan of
Reorganization.
According to The Wall Street Journal, the judge overruled
objections lodged by a lawyer representing airline customers, who
spent more than an hour on Nov. 25 arguing that the merger would
hurt airline competition and customers, the report further
related. The judge also shot down an attempt by the lawyer,
Joseph M. Alioto, to get a restraining order to block the merger.
Under current market prices, the merger gives stakeholders more
than $13.1 billion in value, an AMR lawyer said at the Nov. 25
hearing on the settlement.
Monday's Hearing
Stephanie Gleason, writing for The Wall Street Journal, reported
that Judge Sean H. Lane of U.S. Bankruptcy Court in Manhattan
signed off on the deal two days after the airlines made the case
in court that the settlement didn't materially change the merger
plan he signed off on earlier this year. The airlines hope to
close the deal next month.
The deal would settle the Justice Department's antitrust
lawsuit, the last hurdle in AMR and US Airways' bid to create the
world's largest airline.
Under that deal, American and US Airways agreed to give up slots
at Reagan National Airport in Washington, D.C., and at New York's
LaGuardia airports.
Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reported that the law requires giving the public an opportunity
to comment on the proposed antitrust settlement before it
receives court approval. The U.S. District Court in Washington,
where the antitrust suit is pending, laid down a schedule last
week under which public comment is due by Feb. 7. The Government
will publish the comments, so the judge in Washington can't
formally approve the antitrust settlement around March 10.
At the hearing, Judge Lane was asked by the airlines' attorneys
to find that the settlement did not damage the restructuring plan
and did not require American to ask creditors and stockholders to
vote again to confirm the plan, according to a Nov. 25 article by
Terry Maxon of Dallas Morning News.
Judge Lane, however, spent most of the hearing listening to an
argument from San Francisco-based lawyers Joseph Alioto and David
Cook who filed a separate antitrust suit on behalf of 40 travel
agents and business passengers to block the merger on grounds
that it violated the Clayton Act. The lawyers also sought a
temporary restraining order to stall the merger pending a final
decision on their antitrust suit.
Mr. Alioto told the bankruptcy judge that the plaintiffs would
have liked to have undertaken discovery and interviewed
witnesses. He said the case, however, was put on hold while the
Justice Department's antitrust suit was ongoing, according to the
Dallas Morning News article.
Judge Lane repeatedly stopped Mr. Alioto as the lawyer talked,
pointing out that he was referring to things that had not been
submitted in the bankruptcy court. He also asked the lawyer to
quit citing things at length that had been filed in the case, the
article said.
If Judge Lane grants the temporary restraining order, Mr.
Alioto's clients will testify in court before the judge rules in
finality on the merger. If he grants American's restructuring
plan, the merger is expected to close on Dec. 9, according to a
report by Jason Whitely of WFAA.
None of Mr. Alioto's 40 plaintiffs were present at the hearing.
An attorney for US Airways questioned that they face personal
harm from being present and said that the lawyer's argument
provided much rhetoric with scant substance, WFAA reported.
APA, et al., Back Settlement
The unions representing pilots, flight attendants and ground
workers at American Airlines expressed support for approval of
the settlement.
In a court filing, the Allied Pilots Association, the Association
of Professional Flight Attendants, and the Transport Workers
Union of America said that although the deal requires the
divestiture of assets to address the government's concerns, it
will have small impact on the operations of the merged airline.
"Absent the settlement, if the DOJ plaintiffs were to prevail,
[American] would have to abandon the merger that has brought such
value to the creditors," the unions said, adding that the airline
would have to develop a new plan that "would leave American at
more of a competitive disadvantage."
The settlement also drew support from another group, which calls
itself the ad hoc committee of AMR Corp. creditors. The group
asked Judge Lane to overrule the objection filed by Mr. Alioto's
clients to block court approval of the settlement.
APA is represented by:
Filiberto Agusti, Esq.
Joshua R. Taylor, Esq.
Steptoe & Johnson LLP
1330 Connecticut Ave., NW
Washington, DC 20036
Tel: (202) 429-3000
Fax: (202) 261-0658
Email: fagusti@steptoe.com
jrtaylor@steptoe.com
APFA is represented by:
Robert S. Clayman, Esq.
N. Skelly Harper, Esq.
Guerrieri, Clayman, Bartos & Parcelli P.C.
1900 M Street, N.W.
Washington, D.C. 20036
Tel: (202) 624-7400
Fax: (202) 624- 7420
Email: rclayman@geclaw.com
sharper@geclaw.com
TWUA is represented by:
David Rosen, Esq.
General Counsel
Transport Workers Union of America
501 3rd Street, NW, 9th Floor
Washington, DC 20001
Tel: (202) 719-3839
Fax: (202) 347-0454
Email: D-Rosen@TWU.org
- and -
Richard S. Edelman, Esq.
O'DONNELL, SCHWARTZ & ANDERSON P.C.
1300 L Street, N.W., Suite 1200
Washington, DC 20005
Tel: (202) 898-1707
Fax: (202) 682-9276
Email: REdelman@odsalaw.com
- and -
Sharon L. Levine, Esq.
Jeffrey Blumenfeld, Esq.
LOWENSTEIN SANDLER LLP
65 Livingston Avenue
Roseland, NJ 07068
Tel: 973-597-2500
Email: jblumenfeld@lowenstein.com
slevine@lowenstein.com
The ad hoc committee is represented by:
Gerard Uzzi, Esq.
Eric K. Stodola, Esq.
MILBANK, TWEED, HADLEY & McCLOY LLP
1 Chase Manhattan Plaza
New York, NY 10005
Tel: (212) 530-5000
Fax: (212) 822-5670
E-mail: guzzi@milbank.com
estodola@milbank.com
About American Airlines
AMR Corp. and its subsidiaries including American Airlines, the
third largest airline in the United States, filed for bankruptcy
protection (Bankr. S.D.N.Y. Lead Case No. 11-15463) in Manhattan
on Nov. 29, 2011, after failing to secure cost-cutting labor
agreements. AMR, previously the world's largest airline prior to
mergers by other airlines, is the last of the so-called U.S.
legacy airlines to seek court protection from creditors.
Weil, Gotshal & Manges LLP serves as bankruptcy counsel to the
Debtors. Paul Hastings LLP and Debevoise & Plimpton LLP Groom Law
Group, Chartered, are on board as special counsel. Rothschild
Inc., is the financial advisor. Garden City Group Inc. is the
claims and notice agent.
Jack Butler, Esq., John Lyons, Esq., Felecia Perlman, Esq., and
Jay Goffman, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP
serve as counsel to the Official Committee of Unsecured Creditors
in AMR's chapter 11 proceedings. Togut, Segal & Segal LLP is the
co-counsel for conflicts and other matters; Moelis & Company LLC
is the investment banker, and Mesirow Financial Consulting, LLC,
is the financial advisor.
The Retiree Committee is represented by Jenner & Block LLP's
Catherine L. Steege, Esq., Charles B. Sklarsky, Esq., and Marc B.
Hankin, Esq.
AMR and US Airways Group, Inc., on Feb. 14, 2013, announced a
definitive merger agreement under which the companies will combine
to create a premier global carrier, which will have an implied
combined equity value of approximately $11 billion.
The bankruptcy judge on Sept. 12, 2013, confirmed AMR Corp.'s plan
to exit bankruptcy through a merger with US Airways. By
distributing stock in the merged airlines, the plan is designed to
pay all creditors in full, with interest.
Judge Sean Lane confirmed the Plan despite the lawsuit filed by
the U.S. Department of Justice and several states' attorney
general complaining that the merger violates antitrust laws.
In November 2013, AMR and the U.S. Justice Department a settlement
of the anti-trust suit. The settlements require the airlines to
shed 104 slots at Reagan National Airport in Washington and 34 at
LaGuardia Airport in New York.
Bankruptcy Creditors' Service, Inc., publishes AMERICAN AIRLINES
BANKRUPTCY NEWS. The newsletter tracks the Chapter 11 proceeding
undertaken by AMR Corp. and its affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
AMERICAN AIRLINES: Proposes to Hire Baker Botts as Special Counsel
------------------------------------------------------------------
AMR Corp. asked the U.S. Bankruptcy Court in Manhattan for green
light to hire Baker Botts LLP as its special counsel.
Baker Botts was previously hired by the company to serve as
"ordinary course" professional pursuant to the court's order
issued on Jan. 17, 2012. The firm's total fees, however, have
already exceeded the $500,000 fee cap imposed by the bankruptcy
court.
Pursuant to the Jan. 17 order, any firm hired as ordinary course
professional is required to file a separate application under
section 327 of the Bankruptcy Code if payments to that firm
exceed $500,000 over the course of AMR's bankruptcy case.
Baker Botts will continue to provide legal advice on issues
concerning executive compensation and employee benefits as well
as legal advice on trade compliance matters.
The firm will be paid on an hourly basis and will receive
reimbursement for work-related expenses. The hourly rates range
from $600 to $1,000 for partners; $300 to $750 for associates and
other counsel; and $150 to $650 for paralegals, clerks and other
non-lawyer professionals.
The firm does not represent any interest adverse to AMR and its
affiliated debtors, according to a declaration by Eric Winwood,
Esq. -- eric.winwood@bakerbotts.com -- at Baker Botts.
About American Airlines
AMR Corp. and its subsidiaries including American Airlines, the
third largest airline in the United States, filed for bankruptcy
protection (Bankr. S.D.N.Y. Lead Case No. 11-15463) in Manhattan
on Nov. 29, 2011, after failing to secure cost-cutting labor
agreements. AMR, previously the world's largest airline prior to
mergers by other airlines, is the last of the so-called U.S.
legacy airlines to seek court protection from creditors.
Weil, Gotshal & Manges LLP serves as bankruptcy counsel to the
Debtors. Paul Hastings LLP and Debevoise & Plimpton LLP Groom Law
Group, Chartered, are on board as special counsel. Rothschild
Inc., is the financial advisor. Garden City Group Inc. is the
claims and notice agent.
Jack Butler, Esq., John Lyons, Esq., Felecia Perlman, Esq., and
Jay Goffman, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP
serve as counsel to the Official Committee of Unsecured Creditors
in AMR's chapter 11 proceedings. Togut, Segal & Segal LLP is the
co-counsel for conflicts and other matters; Moelis & Company LLC
is the investment banker, and Mesirow Financial Consulting, LLC,
is the financial advisor.
The Retiree Committee is represented by Jenner & Block LLP's
Catherine L. Steege, Esq., Charles B. Sklarsky, Esq., and Marc B.
Hankin, Esq.
AMR and US Airways Group, Inc., on Feb. 14, 2013, announced a
definitive merger agreement under which the companies will combine
to create a premier global carrier, which will have an implied
combined equity value of approximately $11 billion.
The bankruptcy judge on Sept. 12, 2013, confirmed AMR Corp.'s plan
to exit bankruptcy through a merger with US Airways. By
distributing stock in the merged airlines, the plan is designed to
pay all creditors in full, with interest.
Judge Sean Lane confirmed the Plan despite the lawsuit filed by
the U.S. Department of Justice and several states' attorney
general complaining that the merger violates antitrust laws.
In November 2013, AMR and the U.S. Justice Department a settlement
of the anti-trust suit. The settlements require the airlines to
shed 104 slots at Reagan National Airport in Washington and 34 at
LaGuardia Airport in New York.
Bankruptcy Creditors' Service, Inc., publishes AMERICAN AIRLINES
BANKRUPTCY NEWS. The newsletter tracks the Chapter 11 proceeding
undertaken by AMR Corp. and its affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
AMERICAN AIRLINES: American Eagle, HTL Ink Agreement
----------------------------------------------------
American Eagle Airlines Inc. and HTL Operating LLC inked an
agreement, which requires the hotel company to pay $160,000 to
AMR Corp.'s regional carrier.
The agreement came barely a month after the U.S. Bankruptcy Court
in Manhattan handed down a decision on Oct. 17, requiring HTL to
pay Eagle $185,849 for the legal costs incurred by the airline in
defending itself against a lawsuit filed by the hotel company.
Under the agreement, HTL will pay $160,000 in two installments
instead of $185,849. For the first installment, the hotel
company will pay $87,682 in cash. For the second installment,
the remaining $72,317 will be satisfied by either a cash payment
or a setoff against the so-called "cure amount" that should be
paid by the airline as part of its proposal to assume its
contracts with the hotel company.
HTL is also required to withdraw the notice it filed last month
regarding its intent to appeal the court's Oct. 17 order, and to
discontinue any efforts to appeal the order or the lawsuit. The
agreement can be accessed for free at http://is.gd/642WTp
HTL sued the airline for its alleged violation of their contract
dated Dec. 22, 2010, which requires the company to provide hotel
accommodations to Eagle employees. The hotel company claims it
is owed $27,679 for unpaid services.
About American Airlines
AMR Corp. and its subsidiaries including American Airlines, the
third largest airline in the United States, filed for bankruptcy
protection (Bankr. S.D.N.Y. Lead Case No. 11-15463) in Manhattan
on Nov. 29, 2011, after failing to secure cost-cutting labor
agreements. AMR, previously the world's largest airline prior to
mergers by other airlines, is the last of the so-called U.S.
legacy airlines to seek court protection from creditors.
Weil, Gotshal & Manges LLP serves as bankruptcy counsel to the
Debtors. Paul Hastings LLP and Debevoise & Plimpton LLP Groom Law
Group, Chartered, are on board as special counsel. Rothschild
Inc., is the financial advisor. Garden City Group Inc. is the
claims and notice agent.
Jack Butler, Esq., John Lyons, Esq., Felecia Perlman, Esq., and
Jay Goffman, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP
serve as counsel to the Official Committee of Unsecured Creditors
in AMR's chapter 11 proceedings. Togut, Segal & Segal LLP is the
co-counsel for conflicts and other matters; Moelis & Company LLC
is the investment banker, and Mesirow Financial Consulting, LLC,
is the financial advisor.
The Retiree Committee is represented by Jenner & Block LLP's
Catherine L. Steege, Esq., Charles B. Sklarsky, Esq., and Marc B.
Hankin, Esq.
AMR and US Airways Group, Inc., on Feb. 14, 2013, announced a
definitive merger agreement under which the companies will combine
to create a premier global carrier, which will have an implied
combined equity value of approximately $11 billion.
The bankruptcy judge on Sept. 12, 2013, confirmed AMR Corp.'s plan
to exit bankruptcy through a merger with US Airways. By
distributing stock in the merged airlines, the plan is designed to
pay all creditors in full, with interest.
Judge Sean Lane confirmed the Plan despite the lawsuit filed by
the U.S. Department of Justice and several states' attorney
general complaining that the merger violates antitrust laws.
In November 2013, AMR and the U.S. Justice Department a settlement
of the anti-trust suit. The settlements require the airlines to
shed 104 slots at Reagan National Airport in Washington and 34 at
LaGuardia Airport in New York.
Bankruptcy Creditors' Service, Inc., publishes AMERICAN AIRLINES
BANKRUPTCY NEWS. The newsletter tracks the Chapter 11 proceeding
undertaken by AMR Corp. and its affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
AMERICAN PETRO-HUNTER: Incurs $1.5 Million Net Loss in Q3
---------------------------------------------------------
American Petro-Hunter Inc. filed with the U.S. Securities and
Exchange Commission its quarterly report on Form 10-Q disclosing a
net loss of $1.54 million on $32,934 of revenue for the three
months ended Sept. 30, 2013, as compared with a net loss of $1.59
million on $78,671 of revenue for the same period during the prior
year.
For the nine months ended Sept. 30, 2013, the Company reported a
net loss of $2.21 million on $107,943 of revenue as compared with
a net loss of $2.53 million on $266,348 of revenue for the same
period a year ago.
As of Sept. 30, 2013, the Company had $593,049 in total assets,
$2.02 million in total liabilities and a $1.42 million total
stockholders' deficit.
A copy of the Form 10-Q is available for free at:
http://is.gd/yAM84O
About American Petro-Hunter
Wichita, Kansas-based American Petro-Hunter, Inc., is an oil and
natural gas exploration and production (E&P) company with current
projects in Payne and Lincoln Counties in Oklahoma.
Weaver Martin & Samyn, LLC, in Kansas City, Missouri, issued a
"going concern" qualification on the consolidated financial
statements for the year ended Dec. 31, 2012. The independent
auditors noted that the Company has suffered recurring losses from
operations and is dependent upon the continued sale of its
securities or obtaining debt financing for funds to meet its cash
requirements. These factors raise substantial doubt about the
Company's ability to continue as a going concern.
American Petro-Hunter disclosed a net loss of $3.30 million on
$308,770 of revenue for the year ended Dec. 31, 2012, as compared
with a net loss of $2.73 million on $317,931 of revenue during the
prior year.
ARINC INC: S&P Retains 'B+' Corp Credit Rating on Watch Positive
----------------------------------------------------------------
Standard & Poor's Ratings Services said that its ratings on ARINC
Inc. (B+/Watch Pos/--) remain on CreditWatch, where S&P placed
them with positive implications on Aug. 12, 2013, when the company
agreed to an acquisition by Rockwell Collins Inc. On Nov. 19,
2013, S&P published new corporate criteria that, among other
changes, revise its analysis of companies owned by financial
sponsors. These changes could result in a modest upgrade for
ARINC. If S&P completes its review of ARINC's ratings applying
the new criteria, it could raise the ratings and leave them on
CreditWatch positive. If Rockwell Collins completes its
acquisition of ARINC before S&P completes the criteria review, it
will likely raise its ratings to the same level as those of
Rockwell Collins and then withdraw the ratings.
RATINGS LIST
Ratings Remaining On CreditWatch Positive
ARINC Inc.
Corporate Credit Rating B+/Watch Pos/--
Senior Secured BB-/Watch Pos
Recovery Rating 2
Senior Secured B-/Watch Pos
Recovery Rating 6
AS SEEN ON TV: Incurs $10.8 Million Net Loss in Sept. 30 Qtr.
-------------------------------------------------------------
As Seen On TV, Inc., filed with the U.S. Securities and Exchange
Commission its quarterly report on Form 10-Q disclosing a net loss
of $10.85 million on $695,628 of revenues for the three months
ended Sept. 30, 2013, as compared with net income of $12.18
million on $637,724 of revenues for the same period a year ago.
For the six months ended Sept. 30, 2013, the Company incurred a
net loss of $11.38 million on $1.38 million of revenues as
compared with net income of $1.43 million on $1.03 million of
revenues for the same period during the prior year.
The Company's balance sheet at Sept. 30, 2013, showed $7.78
million in total assets, $7.81 million in total liabilities and a
$31,075 total shareholders' deficit.
Bankruptcy Warning
"At September 30, 2013, we had a cash balance of approximately
$340,000, a working capital deficit of approximately $5.7 million
and an accumulated deficit of approximately $25.0 million. We
have experienced losses from operations since our inception, and
we have relied on a series of private placements and convertible
debentures to fund our operations. The Company cannot predict how
long it will continue to incur losses or whether it will ever
become profitable."
"There can be no assurance that we will be able to secure the
additional funding we need. If our efforts to do so are
unsuccessful, we will be required to further reduce or eliminate
our operations and/or seek relief through a filing under the U.S.
Bankruptcy Code. These factors, among others, raise substantial
doubt about our ability to continue as a going concern," the
Company said in the Quarterly Report.
Prior to the Form 10-Q filing, the Company notified the SEC on
on Form 12b-25 regarding the late filing of its quarterly report
on Form 10-Q for the quarter ended Sept. 30, 2013. The Company
said certain financial and other information necessary for an
accurate and full completion of the Report could not be provided
within the prescribed time period without unreasonable effort or
expense.
A copy of the Form 10-Q is available for free at:
http://is.gd/3xoomF
About As Seen on TV
Clearwater, Fla.-based As Seen On TV, Inc., is a direct response
marketing company. It identifies, develops, and markets consumer
products.
As reported by the TCR on Nov. 6, 2012, As Seen On TV entered into
an Agreement and Plan of Merger with eDiets Acquisition Company
("Merger Sub"), eDiets.com, Inc., and certain other individuals.
Pursuant to the Merger Agreement, Merger Sub will merge with and
into eDiets.com, and eDiets.com will continue as the surviving
corporation and a wholly-owned subsidiary of the Company.
As Seen On TV disclosed net income of $3.69 million on $10.10
million of revenues for the year ended March 31, 2013, as compared
with a net loss of $8.07 million on $8.16 million of revenues
during the prior year.
EisnerAmper LLP, in Edison, New Jersey, issued a "going concern"
qualification on the consolidated financial statements for the
year ended March 31, 2013. The independent auditors noted that
the Company's recurring losses from operations and negative cash
flows from operations raise substantial doubt about its ability to
continue as a going concern.
ASR CONSTRUCTORS: Court Okays Hiring of Accountant
--------------------------------------------------
The U.S. Bankruptcy Court granted the request of ASR Constructors,
Inc., to hire Rodgers, Anderson, Malody & Scott LLP CPAs as
accountant, overruling an objection by Peter C. Anderson, the
United States Trustee for Region 16.
The U.S. Trustee opposed to the Debtor's bid to hire (1) Rodgers,
Anderson Malody & Scott, LLP CPAs as accountant; (2) Law Office of
John D. Mannerino as corporate counsel; and (3) Younger &
Associates as special counsel.
The Debtor's employment application states that the firm is owed
$40,126 for prepetition services. The U.S. Trustee said that
because the firm is a prepetition creditor, it is not
disinterested and is ineligible to be employed by the estate.
The U.S. Trustee pointed out that 11 U.S.C. Sec. 327(a) requires
that professionals employed by a debtor must be "disinterested
persons." Pursuant to 11 U.S.C. Sec. 101(14)(A), a "disinterested
person" is, among other things, "a person that . . . is not a
creditor."
The U.S. Trustee said the Court should deny the employment
application with prejudice unless (i) the firm establishes the
amount of its prepetition debt; and (ii) waives its prepetition
claims.
ASR Constructors submitted its Omnibus Reply to the Oppositions
filed by the U.S. Trustee. The Debtor said the Accountant has
agreed to reduce its pre-petition claim to the sum of $5,769.30
for services directly related to the bankruptcy filing; (2) Mr.
Mannerino will agree to withdraw his employment application if he
can be paid for his services provided in October 2013; and (3)
Younger & Associates has agreed to withdraw its employment
application without prejudice.
ASR is hiring Rodgers Anderson to:
(a) prepare the Debtor's annual federal and state income tax
returns and if necessary, assist the Debtor in resolution
of tax matters;
(b) assist the Debtor in the preparation of quarterly financial
statements as necessary in the ordinary course of the
Debtor's financial affairs;
(c) provide the Debtor with accounting consulting services as
necessary in the ordinary course of the Debtor's financial
affairs; and
(d) perform any and all other accounting, tax and business
advice and services incident and necessary as the Debtor
may require of the Firm in ordinary course of the Debtor's
financial affairs.
The Debtor proposes to pay the firm at these hourly rates:
Matthew Wilson $240
Jenny Liu $200
Maya Ivanova $145
Daniel Turner $100
The Debtor's counsel can be reached at:
James C. Bastian, Jr., Esq.
Melissa Davis Lowe, Esq.
SHULMAN HODGES & BASTIAN LLP
8105 Irvine Center Drive, Suite 600
Irvine, CA 92618
Tel: (949) 340-3400
Fax: (949) 340-3000
E-mail: jbastian@shbllp.com
mlowe@shbllp.com
About ASR Constructors
ASR Constructors, Inc., filed a Chapter 11 petition (Bankr. C.D.
Cal. Case No. 13-25794) on Sept. 20, 2013. The petition was
signed by Alan Regotti as president. The Debtor estimated assets
and debts of at least $10 million. Judge Mark D. Houle presides
over the case. James C. Bastian, Jr., Esq., and Melissa Davis
Lowe, Esq., at Shulman Hodges & Bastian, LLP, serve as the
Debtor's counsel.
ASR CONSTRUCTORS: Hires Shulman Hodges as Bankruptcy Counsel
------------------------------------------------------------
Another Meridian Company, LLC and Inland Machinery, Inc., two of
three affiliated companies, with the third being ASR Constructors,
Inc., ask the U.S. Bankruptcy Court for permission to employ
Shulman Hodges & Bastian LLP as Meridian's and Inland general
bankruptcy counsel.
The firm will, among other things, provide these services:
1. to advise the Debtors with respect to their rights, powers,
duties and obligations as debtors in possession in the
administration of their cases, the management of their business
affairs and the management of their property.
2. to advise and assist the Debtors with respect to compliance
with the requirements of the Office of the United States
Trustee.
3. to advise the Debtors regarding matters of bankruptcy law,
including the rights and remedies of the Debtors with respect
to its assets and with respect to the claims of creditors.
James C. Bastian, Jr. attests that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the
Bankruptcy Code.
The firm's rates are:
Attorneys Rates
--------- -----
Leonard M. Shulman $525
Ronald S. Hodges $525
James C. Bastian, Jr. $525
Mark Bradshaw $495
J. Ronald Ignatuk $495
John Mark Jennings $495
Gary A. Pemberton $495
Michael J. Petersen $495
Lynda T. Bui $425
Franklin J. Contreras $425
Robert Huttenhoff $425
Paul S. Ocampo $400
Samuel J. Romero $400
Brian L. Bloom $375
Melissa Davis Lowe $375
Kiara W. Gebhart $350
Rika M. Kido $300
Ryan O'Dea $250
Paralegals Rates
---------- -----
Lorre E. Clapp $195
Pamela G. Little $195
Erlanna L. Lohayza $195
Patricia A. Britton $185
Melanie G. Rodgers $185
Steve P. Swartzell $175
Anne Marie Vernon $175
Tammy Walsworth $175
Arland Udo $150
Tonia Mann-Wooten $125
Of Counsel Rates
---------- -----
A. Lavar Taylor $525
Donald R. Kurtz $525
Gregory J. Anderson $450
About ASR Constructors
ASR Constructors, Inc., filed a Chapter 11 petition (Bankr. C.D.
Cal. Case No. 13-25794) on Sept. 20, 2013. The petition was
signed by Alan Regotti as president. The Debtor estimated assets
and debts of at least $10 million. Judge Mark D. Houle presides
over the case. James C. Bastian, Jr., Esq., and Melissa Davis
Lowe, Esq., at Shulman Hodges & Bastian, LLP, serve as the
Debtor's counsel.
ASR CONSTRUCTORS: Drops Bid to Employ Younger & Assoc. as Counsel
-----------------------------------------------------------------
ASR Constructors, Inc., filed a notice with the Bankruptcy Court a
notice dismissing, without prejudice, its request to employ
Younger & Associates as special counsel.
About ASR Constructors
ASR Constructors, Inc., filed a Chapter 11 petition (Bankr. C.D.
Cal. Case No. 13-25794) on Sept. 20, 2013. The petition was
signed by Alan Regotti as president. The Debtor estimated assets
and debts of at least $10 million. Judge Mark D. Houle presides
over the case. James C. Bastian, Jr., Esq., and Melissa Davis
Lowe, Esq., at Shulman Hodges & Bastian, LLP, serve as the
Debtor's counsel.
ASSURED PHARMACY: Extends Expiration of Tender Offer to Nov. 29
---------------------------------------------------------------
Assured Pharmacy, Inc., has extended the expiration of its
previously announced tender offer to exchange 16 Percent Senior
Convertible Debentures and warrants to purchase common stock for
either:
Option #1: The issuance of restricted shares of common stock for
the settlement of the balance of the Eligible Debenture, which
will consist of principle plus the currently outstanding unpaid
interest as of Sept. 30, 2013, at $0.60 per share with the
issuance of new warrants to purchase common stock at an exercise
price of $0.60 per share for the first 12 months following the
closing date of the issuer tender offer and $0.75 thereafter for
the remainder of the New Warrant's term, with such term to be an
extension of the term of the Eligible Warrant by an additional
three years, or
Option #2: The issuance of amended and restated debentures which
include the principal balance plus all accrued and unpaid interest
as of Sept. 30, 2013, of the Eligible Debentures with a reduction
of the interest rate from sixteen percent to ten percent, the
extension of the maturity date for an additional three years past
the Eligible Debenture's maturity date, reduction of the
conversion price to $0.75 per share, and execution of a
subordination agreement pursuant to which the Company will make no
further payments to the debt holders until such time as the
redemption of certain Series D Preferred Stock (to be designated)
has been made in full and the issuance of New Warrants, the
expiration date of which will be three years past the expiration
date set forth in the Eligible Warrants and a reduction of the
conversion price to $0.75 per share.
The issuer tender offer was previously set to expire at 11:59 P.M.
(Eastern time) on Tuesday, Nov. 19, 2013, and will now expire at
11:59 P.M. (Eastern time) on Friday, Nov. 29, 2013, unless further
extended or terminated. Issuer Direct, LLC, the Company's tender
offer agent has advised that Elections to Participate and Notice
of Conversions representing approximately $915,384 of principal of
the Eligible Debentures have been received.
About Assured Pharmacy
Headquartered in Frisco, Texas, Assured Pharmacy, Inc., is engaged
in the business of establishing and operating pharmacies that
specialize in dispensing highly regulated pain medication for
chronic pain management.
The Company was organized as a Nevada corporation on Oct. 22,
1999, under the name Surforama.com, Inc., and previously operated
under the name eRXSYS, Inc. The Company changed its name to
Assured Pharmacy, Inc., in October 2005.
Assured Pharmacy disclosed a net loss attributable to the Company
of $4 million on $14.14 million of sales for the year ended
Dec. 31, 2012, as compared with a net loss attributable to the
Company of $3.27 million on $16.44 million of sales in 2011.
BDO USA, LLP, in Dallas, Texas, issued a "going concern"
qualification on the consolidated financial statements for the
year ended Dec. 31, 2012. The independent auditors noted 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.
The Company's balance sheet at Sept. 30, 2013, showed
$1.18 million in total assets, $10.57 in total liabilities, and a
stockholders' deficit of $9.4 million.
Bankruptcy Warning
"We are attempting to extend the maturity date of all outstanding
debt securities due in the years 2012 and 2013, but can provide no
assurance that the holders of such securities will agree to extend
the maturity date on these securities on acceptable terms. We are
also discussing the possibility of these debt holders converting
the securities into equity. If our debt holders choose not to
convert certain of these securities into equity, we will need to
repay such debt, or reach an agreement with the debt holders to
extend the terms thereof. If we are forced to repay the debt,
this need for funds would have a material adverse impact on our
business operations, financial condition and prospects, would
threaten our ability to operate as a going concern and may force
us to seek bankruptcy protection," the Company said in the
quarterly report for the period ended June 30, 2013.
AUTO ORANGE II: Files Chapter 11 Petition in California
-------------------------------------------------------
Auto Orange II, LLC, filed a bare-bones Chapter 11 petition
(Bankr. C.D. Cal. Case No. 13-19490) in Santa Ana, California, on
Nov. 21, 2013.
The Debtor estimated $10 million to $50 million in assets and
liabilities.
According to the docket, the schedules of assets and liabilities,
and statement of financial affairs are due Dec. 5, 2013.
The Debtor is represented by James D. Zhou, Esq., at the Law
Offices of Zhou and Chini, in Irvine, California.
Barry Baptiste, president of the company, signed the Chapter 11
petition.
BAKERSFIELD GROVE: Hearing to Dismiss Case Set for Dec. 17
----------------------------------------------------------
The hearing on the motion of Peter C. Anderson, the United States
Trustee for Region 16, to dismiss the chapter 11 case of
Bakersfield Grove Limited, LLC, is set for Dec. 17, 2013.
In his motion, Mr. Anderson asked the Bankruptcy Court to dismiss
the Chapter 11 bankruptcy case of Bakersfield Grove or convert it
to one under Chapter 7 of the Bankruptcy Code.
The U.S. Trustee is seeking dismissal or conversion for these
reasons:
(1) The Debtor has failed to file Monthly Operating Reports
("MORS") for the months of July, August and September
2013; and
(2) The Debtor has not paid U.S. Trustee quarterly fees due and
owing for the second and third quarters of 2013.
The Debtor is delinquent on payments to the U.S. Trustee for
quarterly fees for the second and third quarters of 2013 in the
total amount of at least $1,961.
About Bakersfield Grove
Brea, California-based Bakersfield Grove Limited, LLC, owns real
property at Panam Lane in Bakersfield, Calif.
Bakersfield Grove filed a Chapter 11 petition (Bankr. C.D. Cal.
Case No. 12-13157) on March 12, 2012. Judge Erithe A. Smith
presides over the case. Kathy Bazoian Phelps, Esq., at Danning,
Gill, Diamond & Kollitz, LLP. The petition was signed by Robert
M. Clark, president of managing member.
The Debtor scheduled total assets of $17.4 million and total
liabilities of $20.7 million.
Steven M. Speier, the receiver of the Debtor's assets, is
represented by Jeffrey B. Gardner, Esq., and Laurie Chavez, Esq.,
at Barry, Gardner & Kincannon.
BERRY PLASTICS: Mark Miles Replaces Jim Kratochvil as CFO
---------------------------------------------------------
Jim Kratochvil, the chief financial officer of Berry Plastics
Group, Inc., notified the Company of his decision to retire
effective Jan. 2, 2014. The Company has elected Mark Miles, who
currently serves as executive vice president, controller and
treasurer, to replace Kratochvil as chief financial officer.
"On behalf of the Board of Directors and the entire Berry Plastics
team, I want to thank Jim for his outstanding and dedicated
service to The Company," said Jon Rich, Berry Plastics' chairman
and CEO. "As our head of finance since 1985, Jim helped lead the
growth of our Company from $20 million in revenue to our $4.8
billion in fiscal 2012. I will personally miss the advice and
counsel he has provided to me during the past three years and I
wish him and his family the best as they begin their well-deserved
retirement journey."
Rich added, "We are pleased to have in the Company a financial
executive with the leadership and skills Mark brings to this role.
His treasury, controller, and public accounting experience; his
extensive knowledge and understanding of Berry?s business; and his
strong leadership of our IPO and secondary offerings demonstrate
that Mark is well-prepared to help lead the Company's continued
growth. Mark has worked closely with Jim during his career at
Berry Plastics, which will support a seamless transition as we
move into 2014."
Miles joined Berry Plastics more than 15 years ago as Corporate
Controller. Prior to joining the Company, Miles was an Audit
Manager for Ernst & Young and a Controller at USA Group, both in
Indianapolis. He holds a B.S. in Accounting from the University
of Southern Indiana and is a Certified Public Accountant.
About Berry Plastics
Berry Plastics Corporation manufactures and markets plastic
packaging products, plastic film products, specialty adhesives and
coated products. At Jan. 2, 2010, the Company had more than 80
production and manufacturing facilities, primarily located in the
United States. Berry is a wholly-owned subsidiary of Berry
Plastics Group, Inc. Berry Group is primarily owned by affiliates
of Apollo Management, L.P., and Graham Partners. Berry, through
its wholly owned subsidiaries operates five reporting segments:
Rigid Open Top, Rigid Closed Top, Flexible Films, Tapes/Coatings
and Specialty Films. The Company's customers are located
principally throughout the United States, without significant
concentration in any one region or with any one customer.
On Dec. 3, 2009, Berry Plastics obtained control of 100 percent of
the capital stock of Pliant upon Pliant's emergence from
reorganization pursuant to a proceeding under Chapter 11 for a
purchase price of $602.7 million. Pliant is a leading
manufacturer of value-added films and flexible packaging for food,
personal care, medical, agricultural and industrial applications.
The acquired business is primarily operated in Berry's Specialty
Films reporting segment.
As of June 29, 2013, the Company had $5.04 billion in total
assets, $5.29 billion in total liabilities and a $251 million
total stockholders' deficit.
* * *
As reported by the TCR on Feb. 1, 2013, Moody's Investors Service
upgraded the corporate family rating of Berry Plastics to B2 from
B3 and the probability of default rating to B2-PD from B3-PD. The
upgrade of the corporate family rating to B2 from B3 reflects
the improvement in pro-forma credit metrics and management's
publicly stated goal to pursue a less aggressive, more balanced
financial profile.
In November 2011, Standard & Poor's Ratings Services affirmed the
'B-' corporate credit rating on Berry and its holding company
parent, Berry Plastics Group Inc. "The ratings on Berry reflect
the risks associated with the company's highly leveraged financial
profile and acquisition- driven growth strategy as well as its
fair business risk profile," said Standard & Poor's credit analyst
Cynthia Werneth.
In November 2011, Standard & Poor's Ratings Services affirmed the
'B-' corporate credit rating on Berry and its holding company
parent, Berry Plastics Group Inc. "The ratings on Berry reflect
the risks associated with the company's highly leveraged financial
profile and acquisition- driven growth strategy as well as its
fair business risk profile," said Standard & Poor's credit analyst
Cynthia Werneth.
BG MEDICINE: Appoints Stephen Hall as Chief Financial Officer
-------------------------------------------------------------
BG Medicine, Inc.'s Board of Directors has appointed Stephen P.
Hall, as the company's executive vice president, chief financial
officer.
Mr. Hall most recently held the position of vice president finance
- treasurer, principal financial and chief accounting officer at
Stemline Therapeutics, a publicly traded clinical stage
biopharmaceutical company, where he helped execute financings in
excess of $100 million. Prior to joining Stemline Therapeutics,
Mr. Hall served as chief financial officer at both life science
and medical device companies, including Orthocon, Inc., Helicos
BioSciences Corporation, TriPath Imaging, Inc., and Colorado
MEDtech.
"Steve Hall has demonstrated a long standing passion for and
commitment to helping to build emerging commercial companies,"
said Dr. Paul Sohmer, president and chief executive officer at BG
Medicine, Inc. "I am delighted to be working with him again. I
know what he can do and I expect that Steve will make major
contributions to our drive toward commercial success."
Mr. Hall, a certified public accountant, began his professional
career with Peat, Marwick, Mitchell & Co., in Chicago, IL. In
addition to his experience as an operating CFO, he spent nearly 10
years in commercial banking. He received his AB degree from
Harvard College and MBA from Stanford University Graduate School
of Business.
Mr. Hall will replace Charles Abdalian, who has served as BG
Medicine's CFO since October 2012. "The Board and I would like to
thank Chuck Abdalian for his contributions to BG Medicine," said
Dr. Sohmer. "His tenacity and hard work are greatly appreciated.
I wish him all the best going forward."
In connection with his appointment, Mr. Hall entered into an
employment agreement with the Company, effective as of Dec. 3,
2013, setting forth Mr. Hall's compensation and certain other
terms. Pursuant to his employment agreement, Mr. Hall will be
paid an annual base salary of $290,000 and he will be eligible to
receive an annual bonus of up to 40 percent of his annual base
salary upon the achievement of certain corporate performance
goals, which will be set by the board of directors of the Company,
and individual performance goals, which will be set by the
Company's president and chief executive officer.
Fails to Regain NASDAQ Compliance
On Nov. 14, 2013, BG Medicine received written notice from the
Staff of the Listing Qualifications Department of The NASDAQ Stock
Market LLC indicating that the Company had not regained compliance
with the $50 million market value of listed securities requirement
for continued listing on The NASDAQ Global Market, as set forth in
NASDAQ Listing Rule 5450(b)(2)(A), prior to the expiration of the
applicable grace period on Nov. 11, 2013. As a result, the
Company's securities are subject to delisting from The NASDAQ
Global Market unless the Company timely requests a hearing before
the NASDAQ Listing Qualifications Panel.
The Company intends to timely request a hearing before the Panel,
at which the Company may request a transfer to The NASDAQ Capital
Market pursuant to an extension within which to complete its plan
to evidence compliance with all applicable requirements for
continued listing on that market. The requirements for continued
listing on the Capital Market are generally lower than the
requirements for The NASDAQ Global Market. In particular, the
Company may evidence compliance with the Capital Market listing
standards by demonstrating either $2.5 million in stockholders'
equity or a market value of listed securities of $35 million. The
Company's request for a hearing will stay any delisting or
suspension action pending the issuance of a decision by the Panel
following the hearing and the expiration of any extension granted
by the Panel. However, there can be no assurance that the Panel
will grant the Company's request for continued listing.
The Staff's determination follows the Company's prior disclosure
via a Current Report on Form 8-K filed on May 17, 2013, regarding
the Company's receipt of written notice from the Staff indicating
that the Company's market value of listed securities had closed
below the $50 million market value of listed securities threshold
for the preceding 30 business days and, in accordance with the
Listing Rules, the Company had been provided a grace period,
through Nov. 11, 2013, to regain compliance with that requirement.
The Company remains subject to a grace period of 180 calendar
days, or until March 24, 2014, to regain compliance with the $1.00
bid price requirement for continued listing on The NASDAQ Global
Market, as set forth in NASDAQ Listing Rule 5450(a)(1). As
previously disclosed via a Current Report on Form 8-K filed
September 27, 2013, compliance with the bid price requirement can
be achieved if the bid price for the Company's common stock closes
at or above $1.00 per share for a minimum of 10 consecutive
business days during the 180-day period ending March 24, 2014.
Alternatively, if upon expiration of the grace period on March 24,
2014, the Company is in compliance with the continued listing
requirements for market value of publicly held shares and all
other requirements for initial listing on The NASDAQ Capital
Market other than the minimum bid price requirement, the Company
could apply to transfer the listing of its common stock to The
NASDAQ Capital Market and thereby receive an additional grace
period to regain compliance with the $1.00 bid price requirement.
About BG Medicine
Waltham, Mass.-based BG Medicine is a diagnostics company focused
on the development and commercialization of novel cardiovascular
diagnostic tests to address significant unmet medical needs,
improve patient outcomes and contain healthcare costs. The
Company is currently commercializing two diagnostic tests, the
first of which is the BGM Galectin-3 test, a novel assay for
measuring galectin-3 levels in blood plasma or serum for use as an
aid in assessing the prognosis of patients diagnosed with heart
failure. The Company's second diagnostic test is the CardioSCORE
test, which is designed to identify individuals at high risk for
near-term, significant cardiovascular events, such as heart attack
and stroke.
In its annual report for the period ended Dec. 31, 2012, the
Company said: "We expect to incur further losses in the
commercialization of our cardiovascular diagnostic test and the
operations of our business and have been dependent on funding our
operations through the issuance and sale of equity securities.
These circumstances may raise substantial doubt about our ability
to continue as a going concern."
BG Medicine reported a net loss of $23.8 million in 2012, compared
with a net loss of $17.6 million in 2011. As of Sept. 30, 2013,
the Company had $13.56 million in total assets, $12.95 million in
total liabilities and a $610,000 total stockholders' equity.
BIOZONE PHARMACEUTICALS: Incurs $5.3 Million Net Loss in 3rd Qtr.
-----------------------------------------------------------------
Biozone Pharmaceuticals, Inc., filed with the U.S. Securities and
Exchange Commission its quarterly report on Form 10-Q disclosing a
net loss of $5.30 million on $2.08 million of sales for the three
months ended Sept. 30, 2013, as compared with a net loss of
$98,730 on $4.73 million of sales for the same period during the
prior year.
For the nine months ended Sept. 30, 2013, the Company reported a
net loss of $7.53 million on $5.76 million of sales as compared
with a net loss of $4.45 million on $12.86 million of sales for
the same period a year ago.
The Company's balance sheet at Sept. 30, 2013, showed $7.59
million in total assets, $18.05 million in total liabilities and a
$10.45 million total shareholders' deficiency.
A copy of the Form 10-Q is available for free at:
http://is.gd/K68YgW
About Biozone Pharmaceuticals
Biozone Pharmaceuticals, Inc., formerly, International Surf
Resorts, Inc., was incorporated under the laws of the State of
Nevada on Dec. 4, 2006, to operate as an internet-based provider
of international surf resorts, camps and guided surf tours. The
Company proposed to engage in the business of vacation real estate
and rentals related to its surf business and it owns the Web site
isurfresorts.com. During late February 2011, the Company began to
explore alternatives to its original business plan. On Feb. 22,
2011, the prior officers and directors resigned from their
positions and the Company appointed a new President, Director,
principal accounting officer and treasurer and began to pursue
opportunities in medical and pharmaceutical technologies and
products. On March 1, 2011, the Company changed its name to
Biozone Pharmaceuticals, Inc.
Since March 2011, the Company has been engaged primarily in
seeking opportunities related to its intention to engage in
medical and pharmaceutical businesses. On May 16, 2011, the
Company acquired substantially all of the assets and assumed all
of the liabilities of Aero Pharmaceuticals, Inc., pursuant to an
Asset Purchase Agreement dated as of that date. Aero manufactures
markets and distributes a line of dermatological products under
the trade name of Baker Cummins Dermatologicals.
On June 30, 2011, the Company acquired the Biozone Labs Group
which operates as a developer, manufacturer, and marketer of over-
the-counter drugs and preparations, cosmetics, and nutritional
supplements on behalf of health care product marketing companies
and national retailers.
Biozone incurred a net loss of $7.96 million in 2012, as compared
with a net loss of $5.45 million in 2011.
Paritz and Company. P.A., in Hackensack, New Jersey, issued a
"going concern" qualification on the consolidated financial
statements for the year ended Dec. 31, 2012. The independent
auditors noted that the Company has incurred operating losses for
its last two fiscal years, has a working capital deficiency of
$5,255,220, and an accumulated deficit of $14,128,079. These
factors, among others, raise substantial doubt about the Company's
ability to continue as a going concern.
BROADWAY FINANCIAL: Receives $199,951 Award From U.S. Treasury
--------------------------------------------------------------
Broadway Financial Corporation's wholly-owned subsidiary, Broadway
Federal Bank, f.s.b., received a Bank Enterprise Award of $199,951
as part of the fiscal year 2013 BEA Program offered by the U.S.
Department of the Treasury's Community Development Financial
Institutions Fund.
The Bank was one of 85 recipients under the fiscal year 2013 BEA
Program, which awarded a total of approximately $17 million to
support the selected depositary institutions in their efforts to
expand financial support for low-income communities by encouraging
community and economic development across the country. Recipients
of the awards are required to invest their awards in eligible
activities, such as affordable housing projects, small business
loans and commercial real estate projects, in distressed
communities. The activities that qualify a potential recipient
for an award under the BEA Program occur in census tracts where at
least 30 percent of the population lives at or below the national
poverty level and where the unemployment rate is 1.5 times above
the national average. Awards granted were selected after a
comprehensive review of 98 applications received by the CDFI Fund
from depository institutions across the nation, which represented
an increase of 38 percent over the number of applicants over the
prior year and the largest number of applicants since fiscal year
2002.
Chief Executive Officer, Wayne Bradshaw, stated, "We are honored
to be selected as a recipient under the BEA Program, which
recognizes Broadway's long standing commitment to serving low-to-
moderate income communities in Southern California. The award
will provide valuable support for advancing our mission by
strengthening our earnings and capital base, and will further our
efforts to build our loan portfolio, particularly in multi-family
properties, and increase other community development activities."
About Broadway Financial
Los Angeles, Calif.-based Broadway Financial Corporation was
incorporated under Delaware law in 1995 for the purpose of
acquiring and holding all of the outstanding capital stock of
Broadway Federal Savings and Loan Association as part of the
Bank's conversion from a federally chartered mutual savings
association to a federally chartered stock savings bank. In
connection with the conversion, the Bank's name was changed to
Broadway Federal Bank, f.s.b. The conversion was completed, and
the Bank became a wholly owned subsidiary of the Company, in
January 1996.
The Company is currently regulated by the Board of Governors of
the Federal Reserve System. The Bank is currently regulated by
the Office of the Comptroller of the Currency and the Federal
Deposit Insurance Corporation.
Broadway Financial disclosed net income of $588,000 on
$19.89 million of total interest income for the year ended
Dec. 31, 2012, as compared with a net loss of $14.25 million on
$25.11 million of total interest income during the prior year.
The Company's balance sheet at Sept. 30, 2013, showed $345.67
million in total assets, $320.09 million in total liabilities, and
stockholders' equity of $25.58 million.
Crowe Horwath LLP, in Sacramento, California, issued a "going
concern" qualification on the consolidated financial statements
for the year ended Dec. 31, 2012. The independent auditors noted
that the Company has a tax sharing liability to its consolidated
subsidiary that exceeds its available cash, the Company is in
default under the terms of a $5 million line of credit with
another financial institution lender in which the stock of its
subsidiary bank, Broadway Federal Bank is held as collateral for
the line of credit and the Company and the Bank are both under
formal regulatory agreements. Furthermore, the Company and the
Bank are not in compliance with these agreements and the Company's
and the Bank's capital plan that was submitted under the
agreements has been preliminarily approved subject to completion
of its recapitalization. Failure to comply with these agreements
exposes the Company and the Bank to further regulatory sanctions
that may include placing the Bank into receivership. These
matters raise substantial doubt about the ability of Broadway
Financial Corporation to continue as a going concern.
C&K MARKET: Taps Edward Hostmann as Chief Restructuring Officer
---------------------------------------------------------------
C&K Markets, Inc., seeks authority from the U.S. Bankruptcy Court
for the District of Oregon to employ Edward Hostmann as chief
restructuring officer to be paid an hourly rate of $435.
The Debtor and Mr. Hostmann agreed that Mr. Hostmann's hourly fees
will not exceed $16,000 per week. Associates of Mr. Hostmann will
be paid hourly rates of $295. Mr. Hostmann will also be
reimbursed for any necessary out-of-pocket expenses.
Mr. Hostmann assures the Court that he and his professionals are
each a "disinterested person" as the term is defined in Section
101(14) of the Bankruptcy Code and do not represent any interest
adverse to the Debtors and their estates.
About C&K Market
C&K Market Inc., a 57 year-old grocery store chain, sought
bankruptcy protection from creditors with a plan to sell or close
some of its stores on Nov. 19, 2013. The case (Bankr. D. Ore.
Case No. 13-64561) is assigned to Judge Frank R. Alley, III.
The Debtors are represented by Albert N. Kennedy, Esq., Timothy J.
Conway, Esq., Michael W. Fletcher, Esq., and Ava L. Schoen, Esq.,
at Tonkon Torp LLP, in Portland, Oregon. The Food Partners, LLC,
serves as the Debtors' financial advisor.
The Debtors listed debt of more than $100 million and assets of
less than $50 million in court documents.
C&K MARKET: Hires Kieckhafer Schiffer as Advisors
-------------------------------------------------
C&K Markets, Inc., seeks authority from the U.S. Bankruptcy Court
for the District of Oregon to employ Kieckhafer Schiffer & Company
LLP as advisors and consultants to communicate with lenders,
brokers, attorneys and other professionals as necessary; prepare
projections and financial analysis; and assist with the execution
of business and financial plans.
The KS&Co professionals who will be primarily responsible for
providing services and their current billing rates are as follows:
Name Status Hourly Rate
---- ------ -----------
Gregory A. Fletcher Partner $230
Aaron Loreth Manager $190
Chandra Huskey Senior Accountant $145
Alex Bazor Staff Accountant $65
Isha Tirumali Staff Accountant $65
The firm will also be reimbursed for any necessary out-of-pocket
expenses.
The firm assures the Court that it is a "disinterested person" as
the term is defined in Section 101(14) of the Bankruptcy Code and
does not represent any interest adverse to the Debtors and their
estates.
About C&K Market
C&K Market Inc., a 57 year-old grocery store chain, sought
bankruptcy protection from creditors with a plan to sell or close
some of its stores on Nov. 19, 2013. The case (Bankr. D. Ore.
Case No. 13-64561) is assigned to Judge Frank R. Alley, III.
The Debtors are represented by Albert N. Kennedy, Esq., Timothy J.
Conway, Esq., Michael W. Fletcher, Esq., and Ava L. Schoen, Esq.,
at Tonkon Torp LLP, in Portland, Oregon. The Food Partners, LLC,
serves as the Debtors' financial advisor.
The Debtors listed debt of more than $100 million and assets of
less than $50 million in court documents.
C&K MARKET: Employs Henderson Bennington as Accountants
-------------------------------------------------------
C&K Markets, Inc., seeks authority from the U.S. Bankruptcy Court
for the District of Oregon to employ Henderson Bennington
Moshofsky, P.C., as accountants to assist the Debtor with
accounting and tax issues arising in the Chapter 11 case.
The professional services that Henderson Bennington is to render
include reviewing the Debtor's prior accounting and record
keeping, preparing financial statements, preparing 2015 Reports,
preparing payroll tax returns, assisting the Debtor with the
preparation of its federal and state tax returns and supporting
schedules, preparing any bookkeeping entries necessary in
connection with preparation of the Debtor's tax returns, preparing
and posting any adjusting entries, and generally assisting the
Debtor in accounting and tax matters as may be required.
The Henderson Bennington professionals who will be primarily
responsible for providing services and their current billing rates
are as follows:
Name Hourly Rate
---- -----------
Judith V. Bennington $230
Stephen P. Moshofsky $230
Lai Wa Ng $190
Inna L. Schtokh $140
Kenneth M. Bakondi $140
Trudy E. Bradetich $55
Karin von Krenner $55
The firm will also be reimbursed for reasonable out-of-pocket
expenses.
The firm assures the Court that it is a "disinterested person" as
the term is defined in Section 101(14) of the Bankruptcy Code and
does not represent any interest adverse to the Debtors and their
estates.
About C&K Market
C&K Market Inc., a 57 year-old grocery store chain, sought
bankruptcy protection from creditors with a plan to sell or close
some of its stores, on Nov. 19, 2013 (Case No. 13-64561, Bankr. D.
Ore.). The case is assigned to Judge Frank R. Alley, III.
The Debtors are represented by Albert N. Kennedy, Esq., Timothy J.
Conway, Esq., Michael W. Fletcher, Esq., and Ava L. Schoen, Esq.,
at TONKON TORP LLP, in Portland, Oregon. The Food Partners, LLC,
serves as the Debtors' financial advisor.
The Debtors listed debt of more than $100 million and assets of
less than $50 million in court documents.
CAESARS ENTERTAINMENT: Board OKs $100,000 Payment to Executive
--------------------------------------------------------------
The Human Resources Committee of the Board of Directors of Caesars
Entertainment Corporation approved a one-time discretionary cash
payment of $100,000 to Mr. Timothy Donovan, executive vice
president, general counsel & chief regulatory and compliance
officer, for his work on several significant Company transactions.
On Nov. 14, 2013, the Board of Directors of the Company appointed
Mr. Kelvin Davis to serve on the Company's Finance Committee and
the Nominating and Corporate Governance Committee effective
Nov. 14, 2013, to fill the vacancy of Mr. Karl Peterson, who
resigned from the Board earlier this year.
Mr. Davis also serves as a member of the Company's Executive
Committee and Human Resources Committee.
About Caesars Entertainment
Caesars Entertainment Corp., formerly Harrah's Entertainment Inc.
-- http://www.caesars.com/-- is one of the world's largest casino
companies, with annual revenue of $4.2 billion, 20 properties on
three continents, more than 25,000 hotel rooms, two million square
feet of casino space and 50,000 employees. Caesars casino resorts
operate under the Caesars, Bally's, Flamingo, Grand Casinos,
Hilton and Paris brand names. The Company has its corporate
headquarters in Las Vegas.
Harrah's announced its re-branding to Caesar's on mid-November
2010.
The Company incurred a net loss of $1.49 billion on $8.58 billion
of net revenues for the year ended Dec. 31, 2012, as compared with
a net loss of $666.70 million on $8.57 billion of net revenues
during the prior year. The Company's balance sheet at Sept. 30,
2013, showed $26.09 billion in total assets, $27.59 billion in
total liabilities and a $1.49 billion total deficit.
* * *
Caesars Entertainment carries a 'CCC' long-term issuer default
rating, with negative outlook, from Fitch and a 'Caa1' corporate
family rating with negative outlook from Moody's Investors
Service.
As reported in the TCR on Feb. 5, 2013, Moody's Investors Service
lowered the Speculative Grade Liquidity rating of Caesars
Entertainment Corporation to SGL-3 from SGL-2, reflecting
declining revolver availability and Moody's concerns that Caesars'
earnings and cash flow will remain under pressure causing the
company's negative cash flow to worsen.
In the May 7, 2013, edition of the TCR, Standard & Poor's Ratings
Services said that it lowered its corporate credit ratings on Las
Vegas-based Caesars Entertainment Corp. (CEC) and wholly owned
subsidiary Caesars Entertainment Operating Co. (CEOC) to 'CCC+'
from 'B-'.
"The downgrade reflects weaker-than-expected operating performance
in the first quarter, and our view that Caesars' capital structure
may be unsustainable over the next two years based on our EBITDA
forecast for the company," said Standard & Poor's credit analyst
Melissa Long.
CASEY ANTHONY: Settlement Reached with Texas Equusearch
-------------------------------------------------------
Craig Hlavaty, writing for The Houston Chronicle, reported that a
federal bankruptcy judge has approved a settlement between Casey
Anthony and the Texas search group that helped look for her
missing 2-year-old daughter, Caylee.
According to the report, Texas Equusearch Mounted Search and
Recovery will be allowed to have an unsecured claim of $75,000 in
Anthony's bankruptcy case under the terms of the settlement.
Judge K. Rodney May approved the settlement on Nov. 25 in Tampa,
the report related.
The search group had objected to the bankruptcy, claiming it spent
more than $100,000 searching for the girl in 2008, the report
related. Attorneys for the group said Anthony knew her daughter
was already dead.
Texas Equusearch's Tim Miller says that he and his lawyers decided
to cut their losses and move on from the case, the report further
related. The attorney's fees, court costs, and cost of possible
appeals wouldn't have been worth the fight.
CELL THERAPEUTICS: Partners with Baxter to Develop Pacritinib
--------------------------------------------------------------
Baxter International Inc. and Cell Therapeutics, Inc., have
entered into an exclusive worldwide licensing agreement to develop
and commercialize pacritinib. Pacritinib is a novel
investigational JAK2/FLT3 inhibitor with activity against genetic
mutations linked to myelofibrosis, leukemia and certain solid
tumors. Pacritinib is currently in Phase III development for
patients with myelofibrosis, a chronic malignant bone marrow
disorder.
Under the terms of the agreement, Baxter gains exclusive
commercialization rights for all indications for pacritinib
outside the United States and Baxter and CTI will jointly
commercialize pacritinib in the United States. Baxter will make
an upfront payment of $60 million, which includes an equity
investment in CTI of $30 million. In addition, CTI is eligible to
receive clinical, regulatory, and commercial launch milestone
payments of up to $112 million, $40 million of which relates to
clinical milestones that may be achieved in 2014. Assuming
regulatory approval and commercial launch, CTI may receive
additional sales milestone payments. CTI will receive royalties
on net sales of pacritinib in ex-US markets, and the companies
will share U.S. profits equally. Baxter will record a special
pre-tax in-process research and development charge in the fourth
quarter of 2013 of approximately $30 million.
"The collaboration will complement Baxter's existing oncology
business and growing oncology pipeline, and will leverage our
global commercialization capacity to extend the availability of
pacritinib, which we believe has the potential to address a
significant unmet medical need," said Ludwig Hantson, Ph.D.,
president of Baxter BioScience. "As an established leader in
hematology and rare diseases, we are committed to advancing novel
therapies in an effort to broaden patient access to care."
"We believe Baxter represents the ideal strategic partner to
achieve the full potential of pacritinib," said James A. Bianco,
M.D., president and CEO of CTI. "Our two companies share a
dedication to oncology and a vision for bringing this unique oral
JAK2/FLT3 inhibitor to patients with certain blood cancers and
solid tumors. This collaboration will provide additional
financial resources and commercial expertise to position us to
pursue the development, commercialization and market potential of
pacritinib."
Pacritinib is an oral tyrosine kinase inhibitor (TKI) with dual
activity against JAK2 and FLT3. The JAK family of enzymes is a
central component in signal transduction pathways, which are
critical to normal blood cell growth and development as well as
inflammatory cytokine expression and immune responses. Mutations
in these kinases have been shown to be directly related to the
development of certain blood related cancers including
myeloproliferative neoplasms, leukemia and lymphoma.
Additional information is available for free at:
http://is.gd/Zm5H7W
About Cell Therapeutics
Headquartered in Seattle, Washington, Cell Therapeutics, Inc.
(NASDAQ and MTA: CTIC) -- http://www.CellTherapeutics.com/-- is
a biopharmaceutical company committed to developing an integrated
portfolio of oncology products aimed at making cancer more
treatable.
As of June 30, 2013, the Company had $49.23 million in total
assets, $36.12 million in total liabilities $13.46 million in
common stock purchase warrants and a $357,000 total shareholders'
deficit.
Going Concern
The Company's independent registered public accounting firm
included an explanatory paragraph in its reports on the Company's
consolidated financial statements for each of the years ended
Dec. 31, 2007, through Dec. 31, 2011, regarding their substantial
doubt as to the Company's ability to continue as a going concern.
Although the Company's independent registered public accounting
firm removed this going concern explanatory paragraph in its
report on the Company's Dec. 31, 2012, consolidated financial
statements, the Company expects to continue to need to raise
additional financing to fund its operations and satisfy
obligations as they become due.
"The inclusion of a going concern explanatory paragraph in future
years may negatively impact the trading price of our common stock
and make it more difficult, time consuming or expensive to obtain
necessary financing, and we cannot guarantee that we will not
receive such an explanatory paragraph in the future," the Company
said in the regulatory filing.
The Company added that it may not be able to maintain its listings
on The NASDAQ Capital Market and the Mercato Telematico Azionario
stock market in Italy, or the MTA, or trading on these exchanges
may otherwise be halted or suspended, which may make it more
difficult for investors to sell shares of the Company's common
stock.
Bankruptcy Warning
"We have acquired or licensed intellectual property from third
parties, including patent applications relating to intellectual
property for PIXUVRI, pacritinib, tosedostat, and brostallicin.
We have also licensed the intellectual property for our drug
delivery technology relating to Opaxio which uses polymers that
are linked to drugs, known as polymer-drug conjugates. Some of
our product development programs depend on our ability to maintain
rights under these licenses. Each licensor has the power to
terminate its agreement with us if we fail to meet our obligations
under these licenses. We may not be able to meet our obligations
under these licenses. If we default under any license agreement,
we may lose our right to market and sell any products based on the
licensed technology and may be forced to cease operations,
liquidate our assets and possibly seek bankruptcy protection.
Bankruptcy may result in the termination of agreements pursuant to
which we license certain intellectual property rights, including
the rights to PIXUVRI, Opaxio, tosedostat, and brostallicin," the
Company said in its quarterly report for the period ended June 30,
2013.
CELL THERAPEUTICS: To Discuss Baxter Agreement with Investors
-------------------------------------------------------------
Beginning on Nov. 18, 2013, Cell Therapeutics, Inc., plans to
discuss with investors and analysts its Development,
Commercialization and License Agreement with Baxter International
Inc., Baxter Healthcare Corporation and Baxter Healthcare SA for
the development and commercialization of pacritinib for use in
oncology and potentially additional therapeutic areas.
During those discussions, the Company may provide its beliefs
regarding the expected timing of its development cost payment
obligations and its receipt of cash milestone payments under the
Agreement. Based upon the current development plan, which could
change due to a variety of factors, the Company expects that it
could pay up to $96 million in development costs for the PERSIST-1
and PERSIST-2 myelofibrosis (MF) and acute myeloid leukemia (AML)
programs through mid-2017. Of the $96 million, approximately $70
million will be development costs for the MF and AML programs
through 2015, and to offset some of these expenses during this
period, the Company expects to receive $67 million in cash
milestone progress payments from Baxter through 2015, with
additional success based milestone payments possible thereafter.
The Company believes the upfront proceeds from this collaboration,
as well as expected progress milestones in 2014 and 2015, will
potentially be sufficient to reach regulatory filings for MF in
both the U.S. and E.U. without requiring additional equity
financing for the Company.
About Cell Therapeutics
Headquartered in Seattle, Washington, Cell Therapeutics, Inc.
(NASDAQ and MTA: CTIC) -- http://www.CellTherapeutics.com/-- is
a biopharmaceutical company committed to developing an integrated
portfolio of oncology products aimed at making cancer more
treatable.
As of June 30, 2013, the Company had $49.23 million in total
assets, $36.12 million in total liabilities $13.46 million in
common stock purchase warrants and a $357,000 total shareholders'
deficit.
Going Concern
The Company's independent registered public accounting firm
included an explanatory paragraph in its reports on the Company's
consolidated financial statements for each of the years ended
Dec. 31, 2007, through Dec. 31, 2011, regarding their substantial
doubt as to the Company's ability to continue as a going concern.
Although the Company's independent registered public accounting
firm removed this going concern explanatory paragraph in its
report on the Company's Dec. 31, 2012, consolidated financial
statements, the Company expects to continue to need to raise
additional financing to fund its operations and satisfy
obligations as they become due.
"The inclusion of a going concern explanatory paragraph in future
years may negatively impact the trading price of our common stock
and make it more difficult, time consuming or expensive to obtain
necessary financing, and we cannot guarantee that we will not
receive such an explanatory paragraph in the future," the Company
said in the regulatory filing.
The Company added that it may not be able to maintain its listings
on The NASDAQ Capital Market and the Mercato Telematico Azionario
stock market in Italy, or the MTA, or trading on these exchanges
may otherwise be halted or suspended, which may make it more
difficult for investors to sell shares of the Company's common
stock.
Bankruptcy Warning
"We have acquired or licensed intellectual property from third
parties, including patent applications relating to intellectual
property for PIXUVRI, pacritinib, tosedostat, and brostallicin.
We have also licensed the intellectual property for our drug
delivery technology relating to Opaxio which uses polymers that
are linked to drugs, known as polymer-drug conjugates. Some of
our product development programs depend on our ability to maintain
rights under these licenses. Each licensor has the power to
terminate its agreement with us if we fail to meet our obligations
under these licenses. We may not be able to meet our obligations
under these licenses. If we default under any license agreement,
we may lose our right to market and sell any products based on the
licensed technology and may be forced to cease operations,
liquidate our assets and possibly seek bankruptcy protection.
Bankruptcy may result in the termination of agreements pursuant to
which we license certain intellectual property rights, including
the rights to PIXUVRI, Opaxio, tosedostat, and brostallicin," the
Company said in its quarterly report for the period ended June 30,
2013.
CENGAGE LEARNING: Disclosure Approval Sets Stage for Confirmation
-----------------------------------------------------------------
Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reports that Cengage Learning Inc. scheduled a confirmation
hearing for Feb. 24 after a bankruptcy judge in Brooklyn, New
York, approved disclosure materials allowing creditors to vote on
the revised Chapter 11 reorganization plan.
According to the report, Cengage, a college textbook publisher,
and the creditors' committee said lenders don't have liens on
$273.9 million held in a money-market account. Consequently, the
revised plan creates an escrow fund to be distributed once the
court determines whether first-lien lenders' liens are valid
against the cash and 15,500 copyrights.
The lenders will nonetheless receive an initial distribution of
almost $40 million on account of their unsecured claims, based on
the company's assumptions about the invalidity of secured claims.
Even if the liens are invalid, first-lien lenders said they are
still entitled to benefit from subordination agreements and
participate alongside unsecured creditors by virtue of their
deficiency claims.
The revised plan is designed to reduce debt for borrowed money by
$4.3 billion. Assuming their liens are all valid, senior secured
creditors will take the new equity and a $1.5 billion term loan.
The revised disclosure statement shows the senior secured lenders
with a recovery of 72.8 percent on $3.38 billion in claims, while
second-lien debt holders see 5.5 percent on $41.5 million in
claims.
Senior noteholders are told in the disclosure statement to expect
a 9 percent recovery on claims of $27.6 million. General unsecured
creditors could see 4.1 percent on claims of $3.1 million. Holders
of subordinated notes receive nothing.
After bankruptcy, the company will be financed with a revolving
credit ranging from $250 million to $400 million provided by third
parties.
The company first submitted a plan in August, with amendments
later.
About Cengage Learning
Stamford, Connecticut-based Cengage Learning --
http://www.cengage.com/-- provides innovative teaching, learning
and research solutions for the academic, professional and library
markets worldwide. Cengage Learning's brands include
Brooks/Cole, Course Technology, Delmar, Gale, Heinle, South
Western and Wadsworth, among others. Apax Partners LLP bought
Cengage in 2007 from Thomson Reuters Corp. in a $7.75 billion
transaction. The acquisition was funded in part with $5.6 billion
in new debt financing.
Cengage Learning Inc. filed a petition for Chapter 11
reorganization (Bankr. E.D.N.Y. Case No. 13-bk-44106) on July 2,
2013, in Brooklyn, New York, after signing an agreement where
holders of $2 billion in first-lien debt agree to support a
reorganization plan. The plan will eliminate more than $4 billion
of $5.8 billion in debt.
First-lien lenders who signed the so-called plan-support agreement
include funds affiliated with BlackRock Inc., Franklin Mutual
Adviser LLC, KKR & Co. and Oaktree Capital Management LP. Second-
lien creditors and holders of unsecured notes aren't part of the
agreement.
The Debtors have tapped Kirkland & Ellis LLP as counsel, Lazard
Freres & CO. LLC as financial advisor, Alvarez & Marsal North
America, LLC, as restructuring advisor, and Donlin, Recano &
Company, Inc., as claims and notice agent.
The Debtors filed a Joint Plan of Reorganization and Disclosure
Statement dated Oct. 3, 2013, which provides that the Debtors took
extreme care to advance and protect the interest of unsecured
creditors -- including seeking to protect four primary sources of
potential recoveries for unsecured creditors and providing them
with appropriate time to conduct diligence, and discuss their
conclusions on, among other things, the value of those sources of
potential recoveries.
CHILE MINING: Asher Enterprises Held 9.9% Stake as of Nov. 15
-------------------------------------------------------------
In a Schedule 13G filed with the U.S. Securities and Exchange
Commission, Asher Enterprises, Inc., disclosed that as of Nov. 15,
2013, it beneficially owned 1,115,296 shares of common stock of
Chile Mining Technologies, Inc., representing 9.99 percent of the
shares outstanding. A copy of the regulatory filing is available
for free at http://is.gd/9zy60Q
About Chile Mining
Chile Mining Technologies Inc. is a mineral extraction company
based in the Republic of Chile, with copper as its principal "pay
metal." Its founders, Messrs. Jorge Osvaldo Orellana Orellana and
Jorge Fernando Pizarro Arriagada, have refined the electrowin
process in a way that permits the electrowin process to be used at
a relatively small mine and/or tailings sites. Electrowinning is
a process in which positive and negative electrodes are placed in
an acidic solution containing copper ions, and an electric current
passed through the solution causes the copper to be deposited on
the negative electrodes so that it can be collected.
Chile Mining had a net loss of $4.38 million on $261,089 of sales
for the year ended March 31, 2013, as compared with a net loss of
$3.94 million on $433,554 of sales during the prior fiscal year.
The Company's balance sheet at June 30, 2013, showed $6.88 million
in total assets, $11.59 million in total liabilities and a $4.71
million stockholders' deficiency.
Schwartz Levitsky Feldman LLP, in Toronto, Ontario, Canada, issued
a "going concern" qualification on the consolidated financial
statements for the year ended March 31, 2013. The independent
auditors noted that the continuance of the Company is dependent
upon its ability to obtain financing and upon future profitable
operations from the production of copper. This raises substantial
doubt about it ability to continue as a going concern.
CHINA GINSENG: Incurs $256,000 Net Loss in Sept. 30 Quarter
-----------------------------------------------------------
China Ginseng Holdings, Inc., filed with the U.S. Securities and
Exchange Commission its quarterly report on Form 10-Q disclosing
a net loss of $255,882 on $62,393 of revenue for the three months
ended Sept. 30, 2013, as compared with a net loss of $1.39 million
on $503,772 of revenue for the same period a year ago.
The Company's balance sheet at Sept. 30, 2013, showed $5.58
million in total assets, $6.95 million in total liabilities and a
$1.37 million total stockholders' deficit.
Going Concern
"As indicated in the accompanying financial statements, the
Company had net losses of $255,882 and $1,393,202 for the three
months ended September 30, 2013 and 2012, respectively, and an
accumulated deficit of $9,663,295 as of September 30, 2013, and
there are existing uncertain conditions the Company foresees
relating to its ability to obtain working capital and operate
successfully. Management's plans include the raising of capital
through the debt and equity markets to fund future operations and
the generation of revenue through its businesses. Failure to
raise adequate capital and generate adequate sales revenue could
result in the Company having to curtail or cease operations.
"Additionally, even if the Company does raise sufficient capital
to support its operating expenses and generate adequate revenues,
there can be no assurance that the revenue will be sufficient to
enable the Company to develop business to a level at which it will
generate profits and cash flow from operations. These matters
raise substantial doubt about the Company's ability to continue as
a going concern," the Company said in the Quarterly Report.
A copy of the Form 10-Q is available for free at:
http://is.gd/uJhVXV
About China Ginseng
Changchun City, China-based China Ginseng Holdings, Inc., conducts
business through its four wholly-owned subsidiaries located in
China. The Company has been granted 20-year land use rights to
3,705 acres of lands by the Chinese government for ginseng
planting and it controls, through lease, approximately 750 acres
of grape vineyards. However, recent harvests of grapes showed
poor quality for wine production which indicates that the
vineyards are no longer suitable for planting grapes for wine
production. Therefore, the Company has decided not to renew its
lease for the vineyards with the Chinese government upon
expiration in 2013 and, going forward, it intends to purchase
grapes from the open market in order to produce grape juice and
wine.
The Company reported a net loss of $3.1 million on $2.7 million of
revenues for the nine months ended March 31, 2013, compared with a
net loss of $1.1 million on $3.1 million of sales for the nine
months ended March 31, 2012. "The net loss was primarily due to
the decreased whole sales and increased cost of sales as a
percentage of revenue and the inventory impairment," the Company
said.
CHINA TELETECH: Delays Form 10-Q for Third Quarter
--------------------------------------------------
China Teletech Holding, Inc., filed with the U.S. Securities and
Exchange Commission a Notification of Late Filing on Form 12b-25
with respect to its quarterly report on Form 10-Q for the quarter
ended Sept. 30, 2013.
China Teletech was unable, without unreasonable effort or expense,
to file its Quarterly Report on Form 10-Q for the quarter ended
Sept. 30, 2013, by the Nov. 14, 2013, filing date applicable to
smaller reporting companies, due to a delay experienced by the
Company in completing its financial statements and other
disclosures in the Quarterly Report. As a result, the Company is
still in the process of compiling required information to complete
the Quarterly Report and its independent registered public
accounting firm requires additional time to complete its review of
the financial statements for the quarter ended Sept. 30, 2013, to
be incorporated in the Quarterly Report. The Company anticipates
that it will file the Quarterly Report no later than the fifth
calendar day following the prescribed filing date.
About China Teletech
Tallahassee, Fla.-based China Teletech Holding, Inc., is a
national distributor of prepaid calling cards and integrated
mobile phone handsets and a provider of mobile handset value-added
services. The Company is an independent qualified corporation
that serves as one of the principal distributors of China Telecom,
China Unicom, and China Mobile products in Guangzhou City.
On June 30, 2012, the Company strategically sold its wholly-owned
subsidiary, Guangzhou Global Telecommunication Company Limited
("GGT"), to a third party. GGT was engaged in the trading and
distribution of cellular phones and accessories, prepaid calling
cards, and rechargeable store-value cards.
China Teletech disclosed net income of US$53,542 on US$26.62
million of sales for the year ended Dec. 31, 2012, as compared
with a net loss of US$348,124 on US$18.84 million of sales for the
year ended Dec. 31, 2011.
The Company's balance sheet at June 30, 2013, showed $1.70 million
in total assets, $2.09 million in total liabilities and a $395,637
total stockholders' deficit.
WWC, P.C., in San Mateo, California, issued a "going concern"
qualification on the consolidated financial statements for the
quarter ended June 30, 2013. The independent auditors noted that
the Company has incurred substantial losses, and has difficulty to
pay the People's Republic of China government Value Added Tax and
past due Debenture Holders Settlement, all of which raise
substantial doubt about its ability to continue as a going
concern.
CHRISTIAN BROTHERS: Court OKs Deal Expanding Scope of Mediation
---------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York
approved, on Oct. 21, 2013, a stipulation and order among The
Christian Brothers' Institute, et al., the Official Committee of
Unsecured Creditors, and other parties-in-interest expanding the
scope of mediation.
Pursuant to a stipulation and order dated Feb. 19, 2013, the Court
appointed the Hon. Elizabeth S. Stong, Bankruptcy Judge for the
Eastern District of New York, as mediator to facilitate a
consensual plan of reorganization for Christian Brothers'
Institute. As a result of the Plan Mediation, the Debtors and the
Committee, among other things, negotiated the terms of a
consensual plan of reorganization, and the Debtors and the
Committee have filed such Plan.
Prior to the Debtors' chapter 11 filing, several tort actions were
pending in Washington State court against, among other parties,
the Debtors and the Corporation of the Catholic Archbishop of
Seattle. The plaintiffs generally assert that the Debtors and the
Seattle AD are jointly and severally liable to the plaintiffs in
the Prepetition Actions for sexual abuse perpetrated by certain
individuals for whom the Debtors and the Seattle AD were
responsible.
The Seattle AD, the Debtors, the Committee and certain plaintiffs
in the various Tort Actions have indicated a willingness to
mediate their disputes regarding the Tort Actions, the Insurance
AVP, the Subcon AVP, the Seattle Claims and the Plan before the
mediator.
The parties stipulate and agree that, among other things:
1. The scope of the mediator's authority will be expanded to
authorize the mediator and the parties to mediate a resolution of
(a) the Tort Actions, (b) any claims that may be asserted by
sexual abuse survivors against the Seattle AD, (c) the Insurance
AVP, (d) the Subcon AVP, (e) the Seattle AD Claims, and (f) any
potential objection to the Plan by any of the parties.
2. The mediation will commence as promptly as practicable,
subject to the mediator's and the parties' schedules.
3. Representatives of each party with authority to negotiate a
settlement must attend the mediation. The Archbishop of Seattle
will also personally attend for at least one day at the mediation.
4. The results of the mediation are non-binding, unless the
parties agree otherwise.
5. There will be an absolute mediation privilege, and all
communications made during the mediation will be confidential,
protected from disclosure, and will not constitute a waiver of any
existing privileges and immunities, will not be disclosed to any
third party for any reason, and will not be used for any purpose
other than the mediation.
6. At the conclusion of the mediation, the mediator will send
the Court a memorandum stating that the mediator has conducted a
mediation, the names, addresses and telephone numbers of counsel
who participated in the mediation, and whether the mediation was
successful.
About Christian Brothers' Institute
The Christian Brothers' Institute in New Rochelle, New York, is a
domestic not-for-profit 501(c)(3) corporation organized under Sec.
102(a)(5) of the New York Not-for-Profit Corporation Law. CBI was
formed to establish, conduct and support Catholic elementary and
secondary schools principally throughout New York State.
The Christian Brothers of Ireland, Inc., in Chicago, Illinois, is
a domestic not-for-profit 501(c)(3) corporation organized under
the Not-for-Profit Corporation Law of the State of Illinois. CBOI
was formed to establish, conduct and support Catholic elementary
and secondary schools principally throughout the State of
Illinois, as well as other spiritual and temporal affairs of the
former Brother Rice Province of the Congregation of Christian
Brothers.
CBI and CBOI depend upon grants and donations to fund a portion of
their operating expenses.
The Christian Brothers' Institute and The Christian Brothers of
Ireland filed for Chapter 11 bankruptcy protection (Bankr.
S.D.N.Y. Case Nos. 11-22820 and 11-22821) on April 28, 2011.
Scott S. Markowitz, Esq., at Tarter Krinsky & Drogin LLP, serves
as the Debtors' bankruptcy counsel. The Christian Brothers'
Institute disclosed assets of $63,418,267 and $8,484,853 in
liabilities. CBOI discloses assets of $1,091,084 and liabilities
of $3,622,500.
Attorneys at Pachulski Stang Ziehl & Jones LLP, in Los Angeles,
Calif., and New York, N.Y., represent the Official Committee of
Unsecured Creditors as counsel. Paul A. Richler, Esq., of
Pacific Palisades, Calif., serves as Special Insurance Counsel to
the Official Committee of Unsecured Creditors.
The Christian Brothers' Institute and The Christian Brothers of
Ireland, Inc., and the Official Committee of Unsecured Creditors
have a plan made possible following an "allocation plan"
negotiated with 75% of sexual abuse claimants.
The Joint Chapter 11 Plan of Reorganization dated Aug. 22, 2013,
has the Debtors and the Official Committee of Unsecured Creditors
as co-proponents.
CHRISTIAN BROTHERS: Panel Okayed to Retain Abuse Claims Reviewer
----------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York
authorized the Official Committee of Unsecured Creditors in the
Chapter 11 cases of The Christian Brothers' Institute, et al., to
retain William L. Bettinelli, Retired, as its abuse claims
reviewer in connection with the Committee and the Debtors' joint
plan of reorganization.
The Court also approved procedures for the preliminary review of
abuse claims.
As reported in the Troubled Company Reporter on Oct. 11, 2013,
the Committee also asked the Court to approve procedures for
holders of sexual abuse claims to authorize Mr. Bettinelli's
review of their claims prior to confirmation of the plan.
The Committee noted that under the allocation protocol, the abuse
claims reviewer is required to review of information regarding the
abuse claims. The Committee anticipates that the abuse claims
reviewer will review approximately 430 abuse claims. Mr.
Bettinelli will not make any final determination until after
the Plan is confirmed and the allocation protocol is approved.
Compensation will be payable to Mr. Bettinelli as:
a. review of abuse claims: $500 per claim; and
b. review of abuse claims seeking reconsideration after
initial award: $500 per claim.
To the best of the Committee's knowledge, Mr. Bettinelli is a
"disinterested person" as that term is defined in Section 101(14)
of the Bankruptcy Code.
About Christian Brothers' Institute
The Christian Brothers' Institute in New Rochelle, New York, is a
domestic not-for-profit 501(c)(3) corporation organized under Sec.
102(a)(5) of the New York Not-for-Profit Corporation Law. CBI was
formed to establish, conduct and support Catholic elementary and
secondary schools principally throughout New York State.
The Christian Brothers of Ireland, Inc., in Chicago, Illinois, is
a domestic not-for-profit 501(c)(3) corporation organized under
the Not-for-Profit Corporation Law of the State of Illinois. CBOI
was formed to establish, conduct and support Catholic elementary
and secondary schools principally throughout the State of
Illinois, as well as other spiritual and temporal affairs of the
former Brother Rice Province of the Congregation of Christian
Brothers.
CBI and CBOI depend upon grants and donations to fund a portion of
their operating expenses.
The Christian Brothers' Institute and The Christian Brothers of
Ireland filed for Chapter 11 bankruptcy protection (Bankr.
S.D.N.Y. Case Nos. 11-22820 and 11-22821) on April 28, 2011.
Scott S. Markowitz, Esq., at Tarter Krinsky & Drogin LLP, serves
as the Debtors' bankruptcy counsel. The Christian Brothers'
Institute disclosed assets of $63,418,267 and $8,484,853 in
liabilities. CBOI discloses assets of $1,091,084 and liabilities
of $3,622,500.
Attorneys at Pachulski Stang Ziehl & Jones LLP, in Los Angeles,
Calif., and New York, N.Y., represent the Official Committee of
Unsecured Creditors as counsel. Paul A. Richler, Esq., of
Pacific Palisades, Calif., serves as Special Insurance Counsel to
the Official Committee of Unsecured Creditors.
The Christian Brothers' Institute and The Christian Brothers of
Ireland, Inc., and the Official Committee of Unsecured Creditors
have a plan made possible following an "allocation plan"
negotiated with 75% of sexual abuse claimants.
The Joint Chapter 11 Plan of Reorganization dated Aug. 22, 2013,
has the Debtors and the Official Committee of Unsecured Creditors
as co-proponents.
CLOUD MEDICAL: Newly Filed Q4 2011 Report Shows $51,000 Loss
------------------------------------------------------------
Cloud Medical Doctor Software Corporation, formerly National
Scientific Corporation, filed with the U.S. Securities and
Exchange Commission this month a Form 10-Q disclosing a net loss
of $51,414 for the three months ended Dec. 31, 2011, as compared
with a net loss of $17,790 for the same period a year ago.
The Company's balance sheet at Dec. 31, 2011, showed $1.27 million
in total assets, $2.04 million in total liabilities and a $769,747
total stockholders' deficit.
"The Company has been ineffective in the timely filing of the
company's quarterly filings," the Report noted.
The Company was unable to prepare and file its financial
statements timely due to its limited financial and personnel
resources and delays in the Company's ability to respond to SEC
inquiries regarding financial and accounting presentation.
A copy of the Form 10-Q is available for free at:
http://is.gd/6vLtTi
About Cloud Medical
Henderson, Nev.-based Cloud Medical Doctor Software Corporation
introduced in 2011 the Cloud-MD Office, a "Cloud Based", 5010 and
ICD-10 compliant, fully integrated and interoperable suite of
medical software and services, designed by experienced healthcare
analysts and programmers for healthcare providers, that produces
"Actionable Information" to help Independent Physician Practices,
New Care Delivery Models (ACO), Healthcare Systems and Billing
Services optimize a wide range of business processes resulting in
Increased Profits, Higher Quality, Greater Efficiency, Noticeable
Cost Reductions and Better Patient Care. Current software product
offerings include Practice Management, Electronic Medical Records,
Revenue Management, Patient Financial Solutions, Medical and
Pharmaceutical Supply Management, Claims Management and PHI
Exchange.
S.E.Clark & Company, P.C., in Tucson, Arizona, expressed
substantial doubt about Cloud Medical's ability to continue as a
going concern. The independent auditors noted that the Company
has a net loss for the year ended Sept. 30, 2011, of $356,629, an
accumulated deficit at Sept. 30, 2011, of $26,229,970, cash flows
used by operating activities of $220,628, and needs additional
cash flows to maintain its operations.
COMMUNITY HOME: Court Okays Wells Marble's Withdrawal as Counsel
----------------------------------------------------------------
The U.S. Bankruptcy Court approved the motion of Wells Marble &
Hurst, PLLC, to withdraw as counsel for the debtor, Community Home
Financial Services, Inc. The firm may be reached at:
Roy H. Liddell, Eaq.
Jonathon G. Bissette, Esq.
WELLS MARBLE & HURST, PLLC
300 Concourse Blvd., Suite 200
Ridgeland, MS 39157
Tel: (601) 605-6900
Fax: (601) 605-6901
E-mail: rliddell@wellsmarble.com
jbissette@wellsmarble.com
Attorney for the Debtor can be reached at:
Jim F. Spencer, Jr.,Esq.
WATKINS & EAGER, PLLC
P.O. Box 650
Jackson, MS 39205-0650
Tel: (601) 965-1976
E-mail: jspencer@watkinseager.com
Attorney for Edwards Family Partnership, L.P. and Beher Holdings
Trust can be reached at:
Derek A. Henderson, Esq.
1765-A Lelia Drive, Suite 103
Jackson, MS 39216
Tel: (601) 948-3167
E-mail: derek@derekhendersonlaw.com
About Community Home
Community Home Financial Services, Inc., filed a Chapter 11
petition (Bankr. S.D. Miss. Case No. 12-01703) on May 23, 2012.
Community Home Financial is a specialty finance company located in
Jackson, Mississippi, providing contractors with financing for
their customers. CHFS operates from one central location
providing financing through its dealer network throughout 25
states, Alabama, Delaware, and Tennessee. The Debtor scheduled
$44,890,581 in total assets and $30,270,271 in total liabilities.
Judge Edward Ellington presides over the case.
Derek A. Henderson, Esq., Jonathan Bisette, Esq., and Roy Liddell,
Esq., of Wells, Marble & Hurst, PLLC, serve as counsel to the
Debtor.
On Aug. 8, 2013, the Court approved the Disclosure Statement
explaining the Debtor's Plan of Reorganization dated Jan. 29,
2013.
COMPETITIVE TECHNOLOGIES: Incurs $602,000 Net Loss in 3rd Quarter
-----------------------------------------------------------------
Competitive Technologies, Inc., filed with the U.S. Securities and
Exchange Commission its quarterly report on Form 10-Q disclosing
a net loss of $602,209 on $290,042 of product sales for the three
months ended Sept. 30, 2013, as compared with a net loss of
$596,889 on $310,867 of product sales for the same period during
the prior year.
For the nine months ended Sept. 30, 2013, the Company reported a
net loss of $2.06 million on $426,142 of product sales as compared
with a net loss of $2.33 million on $703,113 of product sales for
the same period a year ago.
As of Sept. 30, 2013, the Company had $4.70 million in total
assets, $10.42 million in total liabilities and a $5.71 million
total shareholders' deficit.
The Company was unable, without unreasonable effort or expense, to
file its Quarterly Report on Form 10-Q for the period ended
Sept. 30, 2013, by the Nov. 14, 2013, filing date applicable to
smaller reporting companies due to a delay experienced by the
Company in completing its financial statements and other
disclosures in the Quarterly Report.
A copy of the Form 10-Q is available for free at:
http://is.gd/fC8fFf
About Competitive Technologies
Fairfield, Conn.-based Competitive Technologies, Inc. (OTC QX:
CTTC) -- http://www.competitivetech.net/-- was established in
1968. The Company provides distribution, patent and technology
transfer, sales and licensing services focused on the needs of its
customers and matching those requirements with commercially viable
product or technology solutions. Sales of the Company's
Calmare(R) pain therapy medical device continue to be the major
source of revenue for the Company.
Competitive Technologies incurred a net loss of $3 million on
$546,139 of gross profit from product sales in 2012, as compared
with a net loss of $3.59 million on $1.86 million of gross profit
from product sales in 2011.
Mayer Hoffman McCann CPAs (The New York Practice of Mayer Hoffman
McCann P.C.), in New York, issued a "going concern" qualification
on the consolidated financial statements for the year ended
Dec. 31, 2012. The independent auditors noted that at Dec. 31,
2012, the Company has incurred operating losses since fiscal year
2006. These conditions raise substantial doubt about the
Company's ability to continue as a going concern.
COMPREHENSIVE CARE: CFO Departure Delays Form 10-Q Filing
---------------------------------------------------------
Comprehensive Care Corporation filed with the U.S. Securities and
Exchange Commission a Notification of Late Filing on Form 12b-25
with respect to its quarterly report on Form 10-Q for the quarter
ended Sept. 30, 2013.
As disclosed in the Current Report on Form 8-K filed by the
Company on Sept. 23, 2013, the Chief Financial Officer of the
Company resigned for personal reasons effective as of Sept. 20,
2013. The Company has not appointed a replacement, and must do so
in order to appropriately prepare the financials for, and to
deliver the appropriate certifications with respect to, the Form
10-Q for the period ending Sept. 30, 2013. The Company will make
such filing once such process is completed.
The Company anticipates a significant reduction in its total
operating revenues due to the previously announced expiration of
its major Puerto Rico contract. The Company also anticipates a
significant reduction in total expenses as a result of that
contract expiration. As a result, the Company anticipate a net
loss for the quarter ended Sept. 30, 2013, as compared to net
income the Company reported for the quarter ended Sept. 30, 2012.
However, the Company is not able to quantify the amount of the net
loss pending the review and completion of its quarterly financial
review.
About Comprehensive Care
Tampa, Fla.-based Comprehensive Care Corporation provides managed
care services in the behavioral health, substance abuse, and
psychotropic pharmacy management fields.
Comprehensive Care disclosed a net loss attributable to common
stockholders of $6.99 million in 2012, as compared with a net loss
attributable to common stockholders of $14.08 million in 2011.
Mayer Hoffman McCann P.C., in Clearwater, Florida, issued a "going
concern" qualification on the consolidated financial statements
for the year ended Dec. 31, 2012. The independent auditors noted
that the Company has suffered recurring losses from operations and
has not generated sufficient cash flows from operations to fund
its working capital requirements. This raises substantial doubt
about the Company's ability to continue as a going concern.
The Company's balance sheet at March 31, 2013, showed $3.74
million in total assets, $27.85 million in total liabilities and a
$24.10 million total stockholders' deficiency.
CORUS BANKSHARES: To Pay $246MM to Settle FDIC Tax Dispute
----------------------------------------------------------
Law360 reported that real estate lender Corus Bankshares Inc.
agreed on Nov. 26 to pay nearly $246 million out of a $267 million
tax refund to settle the Federal Deposit Insurance Corp.'s
objections over how Corus' Chapter 11 reorganization plan planned
to handle the refund.
According to the report, in a related case, Corus' former CEO
Robert Glickman agreed to pay $2.2 million to settle the
bankruptcy trustee's accusations that he violated his fiduciary
duty to the company by continuing to pay dividends while the
company was insolvent.
About Corus Bankshares
Chicago, Illinois-based Corus Bankshares, Inc., is a bank holding
company. Its lone operating unit, Corus Bank, N.A., was closed
on Sept. 11, 2009, by regulators, and the Federal Deposit
Insurance Corporation was named receiver. To protect the
depositors, the FDIC entered into a purchase and assumption
agreement with Chicago-based MB Financial Bank, National
Association, to assume all of the deposits of Corus Bank.
Corus Bankshares sought Chapter 11 protection (Bankr. N.D. Ill.
Case No. 10-26881) on June 15, 2010, disclosing $314,145,828 in
assets and $532,938,418 in liabilities as of the Chapter 11
filing.
Kirkland & Ellis LLP's James H.M. Sprayregen, Esq., David R.
Seligman, Esq., and Jeffrey W. Gettleman, Esq., serve as the
Debtor's bankruptcy counsel. Kinetic Advisors is the Company's
restructuring advisor. Plante & Moran is the Company's auditor
and accountant. Kilpatrick Stockton LLP's Todd Meyers, Esq., and
Sameer Kapoor, Esq.; and Neal Gerber & Eisenberg LLP's Mark
Berkoff, Esq., Deborah Gutfeld, Esq., and Nicholas M. Miller,
Esq., represent the official committee of unsecured creditors.
Corus Bankshares' Third Amended Plan of Reorganization has been
declared effective, and the Company emerged from Chapter 11
protection. The Court confirmed the Plan on Sept. 27, 2011.
CREATION'S GARDEN: Files Chapter 11 Petition in California
----------------------------------------------------------
Creation's Garden Natural Products, Inc., filed a Chapter 11
petition (Bankr. C.D. Cal. Case No. 13-37815) in Los Angeles last
week.
In the bankruptcy petition filed Nov. 20, the Valencia,
California-based company estimated $10 million to $50 million in
assets and liabilities.
According to the docket, the schedules of assets and liabilities
and statement of financial affairs are due Dec. 4, 2013.
Dino Guglielmelli, president and holder of 100% of the common
stock, signed the petition.
The company is represented by attorneys at the law offices of
Leven, Neale, Bender, Yoo & Brill L.L.P.
An affiliate, Creation's Garden Natural Food Markets, Inc.,
simultaneously sought bankruptcy protection.
CREATION'S GARDEN: Seeks Authority to Obtain $364,000 from BOTW
---------------------------------------------------------------
Creation's Garden Natural Products, Inc., and Creation's Garden
Natural Food Markets, Inc., seek authority U.S. Bankruptcy Court
for the Central District of California, Los Angeles Division, to
obtain from Bank of the West postpetition financing in the form of
delayed draw term loans in the aggregate principal amount not to
exceed $364,000.
The Debtors require new funding to maintain CGNP's business
operations and preserve the value of its assets while the Debtors
pursue a marketing and sale process, which will allow the Debtors
to sell CGNP's business as a going concern or, if appropriate,
liquidate the assets of the Debtors in an orderly and efficient
manner.
The rate of interest to be charged for the DIP Loans will be 10%
per annum. Upon and during the occurrence of an Event of Default,
the outstanding principal amount of the DIP Loans will bear
interest at 15% per annum.
As security for the performance of the DIP Obligations, BOTW is
granted enforceable, non-avoidable and fully perfected
first priority priming liens on and senior security interests in
the Collateral, which liens and security interests will prime and
be senior and superior to any and all other security interests,
liens and claims existing as of the Petition Date.
The Debtors are required to achieve the following milestones, any
of which, if not achieved, will constitute an Event of Default
under the DIP Agreement:
(a) The Debtors will obtain entry of the Final DIP Order on or
before December 31, 2013.
(b) On or before December 1, 2013, the Debtors shall prepare,
serve and file a motion or application with the Court to
employ an auctioneer/liquidator/sale consultant/agent
satisfactory to BOTW for the purpose of conducting one or
more sales.
(c) On or before December 31, 2013, the Debtors will obtain
entry of a final order approving the Consultant Employment
Motion.
(d) Consummate all sales on or before February 7, 2014.
CDC Small Business Finance Corp., a secured creditor, opposes the
Debtor's DIP motion due to the confusion created by the language
of the Motion relating to assets of the Debtor subject to the
priming lien motion. The CDC opposes any attempt by the Debtors
or the DIP Lender to prime the CDC's loan against the Property or
use of cash collateral of the CDC.
Creation's Garden Natural Products, Inc., sought protection under
Chapter 11 of the Bankruptcy Code on Nov. 20, 2013 (Case No. 13-
37815, Bankr. C.D. Calif.). The case is assigned to Judge Julia
W. Brand. The Debtor is represented by Ron Bender, Esq., and
Juliet Y. Oh, Esq., at LEVENE, NEALE, BENDER, YOO & BRILL L.L.P.,
in Los Angeles, California.
CDC is represented by David W. Brody, Esq. -- dbrody@brody-law.com
-- Nathan R. Berkeley, Esq. -- nberkeley@brody-law.com -- and
Kenneth R. Shemwell, Esq. -- kshemwell@brody-law.com -- at LAW
OFFICES OF DAVID W. BRODY, in San Diego, California.
CREATION'S GARDEN: Seeks Authority to Use Cash Collateral
---------------------------------------------------------
Creation's Garden Natural Products, Inc., and Creation's Garden
Natural Food Markets, Inc., seek authority U.S. Bankruptcy Court
for the Central District of California, Los Angeles Division, to
use the cash collateral securing their prepetition indebtedness.
As adequate protection for the Debtors' use of cash collateral,
the Debtors propose to provide to BOTW, among other things, valid,
enforceable, and fully perfected replacement postpetition liens
and security interests in the postpetition collateral, which
postpetition liens will not be subject to priming and which will
be senior and superior to all other security interests, liens and
claims existing as of the date of the Petition Date. Further,
BOTW will be granted a Super-Priority Claim against the Debtors'
assets to the extent that the Postpetition Liens do not adequately
protect against the postpetition diminution in value in BOTW's
interest in its collateral, which Super-Priority Claim, if any,
will be higher in priority than all administrative claims to the
Debtors' assets, except for any claims arising from the DIP Loans
and the Carve-Out.
Carve-out means fees paid to the U.S. Trustee, the Clerk of the
Bankruptcy Court, and professionals employed by the Debtors and
any official committee of unsecured creditors.
Creation's Garden Natural Products, Inc., sought protection under
Chapter 11 of the Bankruptcy Code on Nov. 20, 2013 (Case No. 13-
37815, Bankr. C.D. Calif.). The case is assigned to Judge Julia
W. Brand. The Debtor is represented by Ron Bender, Esq., and
Juliet Y. Oh, Esq., at LEVENE, NEALE, BENDER, YOO & BRILL L.L.P.,
in Los Angeles, California.
CREATION'S GARDEN: Employs Levene Neale as Bankruptcy Counsel
-------------------------------------------------------------
Creation's Garden Natural Products, Inc., and Creation's Garden
Natural Food Markets, Inc., seek authority U.S. Bankruptcy Court
for the Central District of California, Los Angeles Division, to
employ Levene, Neale, Bender, Yoo & Brill L.L.P., as
bankruptcy counsel.
The firm's professionals will be paid the following hourly rates:
David W. Levene, Esq. -- dwl@lnbyb.com $595
David L. Neale, Esq. -- dln@lnbyb.com $595
Ron Bender, Esq. -- rb@lnbyb.com $595
Martin J. Brill, Esq. -- mjb@lnbyb.com $595
Timothy J. Yoo, Esq. -- tjy@lnbyb.com $595
Edward M. Wolkowitz, Esq. -- emw@lnbyb.com $595
David B. Golubchik, Esq. -- dbg@lnbyb.com $595
Monica Y. Kim, Esq. -- myk@lnbyb.com $575
Beth Ann R. Young, Esq. -- bry@lnbyb.com $575
Daniel H. Reiss, Esq. -- dhr@lnbyb.com $575
Irving M. Gross, Esq. -- img@lnbyb.com $575
Philip A. Gasteier, Esq. -- pag@lnbyb.com $575
Jacqueline L. James, Esq. -- jlj@lnbyb.com $525
Juliet Y. Oh, Esq. -- jyo@lnbyb.com $525
Michelle S. Grimberg, Esq. -- msg@lnbyb.com $525
Todd M. Arnold, Esq. -- tma@lnbyb.com $525
Todd A. Frealy, Esq. -- taf@lnbyb.com $525
Anthony A. Friedman, Esq. -- aaf@lnbyb.com $475
Carmela T. Pagay, Esq. -- ctp@lnbyb.com $475
Krikor J. Meshefejian, Esq. -- kjm@lnbyb.com $430
John-Patrick M. Fritz, Esq. -- jpf@lnbyb.com $430
Lindsey L. Smith, Esq. -- lls@lnbyb.com $325
Paraprofessionals $195
The firm will also be reimbursed for any reasonable out-of-pocket
expenses.
Ms. Oh, a partner of the law firm of Levene, Neale, Bender, Yoo &
Brill L.L.P., assures the Court that her firm is a "disinterested
person" as the term is defined in Section 101(14) of the
Bankruptcy Code and does not represent any interest adverse to the
Debtors and their estates. During the one-year period prior to
the Petition Date, the Debtors paid the total sum of $80,000 as
retainer payments to LNBYB for legal services in contemplation of
and in connection with the Debtors' chapter 11 cases, inclusive of
each of the Debtors' $1,213 Chapter 11 bankruptcy filing fee.
Creation's Garden Natural Products, Inc., sought protection under
Chapter 11 of the Bankruptcy Code on Nov. 20, 2013 (Case No. 13-
37815, Bankr. C.D. Calif.). The case is assigned to Judge Julia
W. Brand. The Debtor is represented by Ron Bender, Esq., and
Juliet Y. Oh, Esq., at LEVENE, NEALE, BENDER, YOO & BRILL L.L.P.,
in Los Angeles, California.
CRYOPORT INC: Incurs $14.9 Million Net Loss in Fiscal 2nd Qtr.
--------------------------------------------------------------
Cryoport, Inc., filed with the U.S. Securities and Exchange
Commission its quarterly report on Form 10-Q disclosing a net loss
of $14.95 million on $579,827 of net revenues for the three months
ended Sept. 30, 2013, as compared with a net loss of $1.55 million
on $233,597 of net revenues for the same period during the prior
year.
For the six months ended Sept. 30, 2013, the Company incurred a
net loss of $16.28 million on $1.06 million of net revenues as
compared with a net loss of $3.09 million on $424,896 of net
revenues for the same period a year ago.
The Company's balance sheet at Sept. 30, 2013, showed $1.75
million in total assets, $2.33 million in total liabilities and a
$577,878 total stockholders' deficit.
A copy of the Form 10-Q is available for free at:
http://is.gd/3UMknS
About Cryoport
Lake Forest, Calif.-based CryoPort, Inc. (OTC BB: CYRX) provides
comprehensive solutions for frozen cold chain logistics, primarily
in the life science industries. Its solutions afford new and
reliable alternatives to currently existing products and services
utilized for bio-pharmaceuticals and biologics, including in-vitro
fertilization, cell lines, vaccines, tissue and other commodities
requiring a reliable frozen solution.
KMJ Corbin & Company LLP, in Costa Mesa, California, issued a
"going concern" qualification on the consolidated financial
statements for the year ended March 31, 2013. The independent
auditors noted that the Company has incurred recurring operating
losses and has had negative cash flows from operations since
inception. Although the Company has cash and cash equivalents of
$563,104 at March 31, 2013, management has estimated that cash on
hand, which include proceeds from convertible bridge notes
received in the fourth quarter of fiscal 2013, will only be
sufficient to allow the Company to continue its operations into
the second quarter of fiscal 2014. These matters raise
substantial doubt about the Company's ability to continue as a
going concern.
Cryoport incurred a net loss of $6.38 million for the year ended
March 31, 2013, as compared with a net loss of $7.83 million for
the year ended March 31, 2012.
DETROIT, MI: Bond Insurers Want Committee to Sell Art Museum
------------------------------------------------------------
Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reports that Detroit's municipal bond insurers, workers and
retirees are asking the bankruptcy judge to form an ad hoc
committee that will study how best to "monetize" art in the
Detroit Institute of Arts.
According to the report, containing works by Bellini, Rembrandt,
van Gogh and Picasso, the museum is one of Detroit's most valuable
assets because the city effectively can't raise taxes, the
creditors said in their court filing on Nov. 26.
The bankruptcy judge is schedule to hand down his decision Dec. 3
saying whether Detroit is eligible to remain in the Chapter 9
municipal bankruptcy begun in July.
For Detroit to secure court approval of a debt-adjustment plan,
the creditor group believes the "city must prove that such plan
maximizes the value of the art to enhance creditor recoveries."
The creditor group is concerned that failing to sell the art will
"engender lengthy and contentious litigation due to a failure to
provide for the monetization of its non-essential assets,
including the art."
The creditors want the court to form an ad hoc committee to
explore options for selling the art while maintaining the museum
as a "culturally relevant institution."
The creditors hope to avoid a repetition of events in October when
the state took over the expense of operating Belle Isle Park
rather than explore options to "maximize value of the park."
On top of authorizing formation of an ad hoc committee to agree
with the city on how to "monetize the art," the committee wants
the judge to give them power to compel Detroit to "turn over all
information responsive to any reasonable request" for information
about the art.
Creditors seeking the art committee include Financial Guaranty
Insurance Co., Syncora Guarantee Inc., Ambac Assurance Corp., the
American Federation of State, County and Municipal Employees, and
retiree representatives. They want the committee appointed by the
court to include five bondholder representatives and five
representatives of unions and retirees.
About City of Detroit, Michigan
The City of Detroit, Michigan, weighed down by more than
$18 billion in accrued obligations, sought municipal bankruptcy
protection on July 18, 2013, by filing a voluntary Chapter 9
petition (Bankr. E.D. Mich. Case No. 13-53846). Detroit listed
more than $1 billion in both assets and debts.
Kevyn Orr, who was appointed in March 2013 as Detroit's emergency
manager, signed the petition. Detroit is represented by
lawyers at Jones Day and Miller Canfield Paddock and Stone PLC.
Michigan Governor Rick Snyder authorized the bankruptcy filing.
The filing makes Detroit the largest American city to seek
bankruptcy, in terms of population and the size of the debts and
liabilities involved.
The City's $18 billion in debt includes $5.85 billion in special
revenue obligations, $6.4 billion in post-employment benefits,
$3.5 billion for underfunded pensions, $1.13 billion on secured
and unsecured general obligations, and $1.43 billion on pension-
related debt, according to a court filing. Debt service consumes
42.5 percent of revenue. The city has 100,000 creditors and
20,000 retirees.
Detroit is represented by David G. Heiman, Esq., and Heather
Lennox, Esq., at Jones Day, in Cleveland, Ohio; Bruce Bennett,
Esq., at Jones Day, in Los Angeles, California; and Jonathan S.
Green, Esq., and Stephen S. LaPlante, Esq., at Miller Canfield
Paddock and Stone PLC, in Detroit, Michigan.
Sharon Levine, Esq., at Lowenstein Sandler LLP, is representing
the American Federation of State, County and Municipal Employees
and the International Union.
Babette Ceccotti, Esq., at Cohen, Weiss & Simon LLP, is
representing the United Automobile, Aerospace and Agricultural
Implement Workers of America.
A nine-member official committee of retired workers was appointed
in the case. The Retirees' Committee is represented by Dentons US
LLP.
DETROIT, MI: Retirees Drop Objection to Interest-Rate Swap Deal
---------------------------------------------------------------
Joseph Lichterman, writing for Reuters, reported that the
committee representing Detroit's retirees in bankruptcy
proceedings on Nov. 27 withdrew its objection to a deal Detroit
reached to end some interest-rate swap agreements.
According to the report, the Official Committee of Retirees
dropped its objection so the group, which represents about 23,500
retired city workers, could focus on negotiations on other issues
with the city, a person familiar with the retiree committee's
thinking said.
The agreement that Detroit's emergency manager, Kevyn Orr, signed
with swaps dealers Merrill Lynch Capital Services and UBS AG would
end the interest-rate swap agreements at a discount rate of as
much as 25 percent, the report related. In exchange, Detroit
would save more than $70 million and the city would be able to
stop making monthly payments from casino tax revenue to the
counterparties.
The city so far is offering retirees and other creditors far less
than it has offered the swap counter parties, the report said.
The retiree committee withdrew its claim knowing that Merrill and
UBS could get a richer payout than retirees and other creditors,
the source said.
"There's a certain reality of that to deal with," the source said,
the report further related.
About City of Detroit, Michigan
The City of Detroit, Michigan, weighed down by more than
$18 billion in accrued obligations, sought municipal bankruptcy
protection on July 18, 2013, by filing a voluntary Chapter 9
petition (Bankr. E.D. Mich. Case No. 13-53846). Detroit listed
more than $1 billion in both assets and debts.
Kevyn Orr, who was appointed in March 2013 as Detroit's emergency
manager, signed the petition. Detroit is represented by
lawyers at Jones Day and Miller Canfield Paddock and Stone PLC.
Michigan Governor Rick Snyder authorized the bankruptcy filing.
The filing makes Detroit the largest American city to seek
bankruptcy, in terms of population and the size of the debts and
liabilities involved.
The City's $18 billion in debt includes $5.85 billion in special
revenue obligations, $6.4 billion in post-employment benefits,
$3.5 billion for underfunded pensions, $1.13 billion on secured
and unsecured general obligations, and $1.43 billion on pension-
related debt, according to a court filing. Debt service consumes
42.5 percent of revenue. The city has 100,000 creditors and
20,000 retirees.
Detroit is represented by David G. Heiman, Esq., and Heather
Lennox, Esq., at Jones Day, in Cleveland, Ohio; Bruce Bennett,
Esq., at Jones Day, in Los Angeles, California; and Jonathan S.
Green, Esq., and Stephen S. LaPlante, Esq., at Miller Canfield
Paddock and Stone PLC, in Detroit, Michigan.
Sharon Levine, Esq., at Lowenstein Sandler LLP, is representing
the American Federation of State, County and Municipal Employees
and the International Union.
Babette Ceccotti, Esq., at Cohen, Weiss & Simon LLP, is
representing the United Automobile, Aerospace and Agricultural
Implement Workers of America.
A nine-member official committee of retired workers was appointed
in the case. The Retirees' Committee is represented by Dentons US
LLP.
DETROIT, MI: Buffett Says Right Plan Would Restore Market for Debt
------------------------------------------------------------------
Reuters reported that investor Warren Buffett said on Nov. 27 he
expects the market for Detroit's debt to pick up again and bond
insurers to begin backing the debt once the city submits an
appropriate recovery plan to bankruptcy court.
According to the report, Buffett's Berkshire Hathaway Assurance
Corp. re-insures more than $380 million of Detroit's secured sewer
debt that was originally insured by Financial Guaranty Insurance
Co. The city, which is awaiting a decision from a federal judge on
whether it is eligible for bankruptcy, has $18.5 billion in debt
and liabilities.
Speaking at a Goldman Sachs event to promote entrepreneurship in
Detroit, the Berkshire Hathaway chairman and chief executive said
the market for Detroit's debt would pick up "as soon as a plan
comes through that makes sense," the report cited.
Detroit still has assets that appeal to investors, Buffett said.
"The resources in terms of the people, the businesses, the history
and the culture are all here to have a great city in the future,"
he said. "And it will require probably some sort of plan to
readjust the debt of the past and ongoing expenses," the report
further cited.
Defaults by Detroit since June on its pension debt and some of its
general obligation bonds have worried the municipal bond market,
where states, cities, schools and other borrow money, the report
said. Meanwhile, Detroit's state-appointed emergency manager
Kevyn Orr has proposed a $350 million debtor-in-possession
financing that would be the first in a municipal bankruptcy if the
plan wins court approval.
About City of Detroit, Michigan
The City of Detroit, Michigan, weighed down by more than
$18 billion in accrued obligations, sought municipal bankruptcy
protection on July 18, 2013, by filing a voluntary Chapter 9
petition (Bankr. E.D. Mich. Case No. 13-53846). Detroit listed
more than $1 billion in both assets and debts.
Kevyn Orr, who was appointed in March 2013 as Detroit's emergency
manager, signed the petition. Detroit is represented by
lawyers at Jones Day and Miller Canfield Paddock and Stone PLC.
Michigan Governor Rick Snyder authorized the bankruptcy filing.
The filing makes Detroit the largest American city to seek
bankruptcy, in terms of population and the size of the debts and
liabilities involved.
The City's $18 billion in debt includes $5.85 billion in special
revenue obligations, $6.4 billion in post-employment benefits,
$3.5 billion for underfunded pensions, $1.13 billion on secured
and unsecured general obligations, and $1.43 billion on pension-
related debt, according to a court filing. Debt service consumes
42.5 percent of revenue. The city has 100,000 creditors and
20,000 retirees.
Detroit is represented by David G. Heiman, Esq., and Heather
Lennox, Esq., at Jones Day, in Cleveland, Ohio; Bruce Bennett,
Esq., at Jones Day, in Los Angeles, California; and Jonathan S.
Green, Esq., and Stephen S. LaPlante, Esq., at Miller Canfield
Paddock and Stone PLC, in Detroit, Michigan.
Sharon Levine, Esq., at Lowenstein Sandler LLP, is representing
the American Federation of State, County and Municipal Employees
and the International Union.
Babette Ceccotti, Esq., at Cohen, Weiss & Simon LLP, is
representing the United Automobile, Aerospace and Agricultural
Implement Workers of America.
A nine-member official committee of retired workers was appointed
in the case. The Retirees' Committee is represented by Dentons US
LLP.
DEVON HEALTH: Voluntary Chapter 11 Case Summary
-----------------------------------------------
Debtor: Devon Health Services, Inc.
1100 First Avenue
King of Prussia, PA 19406
Case No.: 13-20219
Chapter 11 Petition Date: November 22, 2013
Court: United States Bankruptcy Court
Eastern District of Pennsylvania (Philadelphia)
Judge: Hon. Bruce I. Fox
Debtor's Counsel: Albert A. Ciardi, III, Esq.
Jennifer E. Cranston, Esq.
CIARDI CIARDI & ASTIN, P.C.
One Commerce Square
2005 Market Street, Suite 1930
Philadelphia, PA 19103
Tel: (215) 557-3550
Fax: (215) 557-3551
Email: aciardi@ciardilaw.com
jcranston@ciardilaw.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $10 million to $50 million
The petition was signed by Dr. John A. Bennett, MD, CEO.
The Debtor did not file a list of its largest unsecured creditors
when it filed the petition.
DREIER LLP: May Hire GCG Inc. as Solicitation and Admin. Agent
--------------------------------------------------------------
Sheila M. Gowan, the Chapter 11 trustee for Dreier LLP, sought and
obtained permission from the Bankruptcy Court to employ GCG, Inc.
as Plan Solicitation and Administrative Agent, nunc pro tunc to
Sept. 3, 2013.
As Administrative Agent, GCG will, among other things:
(a) manage the preparation, compilation and mailing of documents
to creditors and other parties in interest in connection with
the solicitation of the Plan;
(b) manage the publication of legal notices;
(c) collect and tabulate votes in connection with any Plan filed
by the Trustee and Committee and provide ballot reports to the
Trustee and Committee and their professionals;
(d) generate an official ballot certification and testify, if
necessary, in support of the ballot tabulation results; and
(e) provide other related administrative services as the Trustee
and Committee may require in connection with the Chapter 11
Case.
The Firm will be paid based on its standard hourly billing rates:
Administrative, Mailroom and Claims Control $45-55
Project Administrators $70-85
Project Supervisors $95-110
Graphic Support & Technology Staff $100-200
Project Managers and Senior Project Managers $125-175
Directors and Asst. Vice Presidents $200-295
Vice Presidents and Above $295
Angela Ferrante, Vice President, Bankruptcy at GCG, assures the
Court that GCG is a "disinterested person" within the meaning of
Section 101(14) of the Bankruptcy Code, and does not hold or
represent an interest adverse to the Debtor's estate in connection
with any matter on which GCG will be employed.
About Marc Dreier and Dreier LLP
Marc Dreier founded New York-based law firm Dreier LLP --
http://www.dreierllp.com/-- in 1996. On Dec. 8, 2008, the U.S.
Securities and Exchange Commission filed a suit, alleging that Mr.
Dreier made fraudulent offers and sales of securities in several
cities, selling fake promissory notes to hedge and other private
investment funds. The SEC asserted that Mr. Dreier also
distributed phony financial statements and audit opinions, and
recruited accomplices in connection with that scheme. Mr. Dreier,
currently in prison, was charged by the U.S. government for
conspiracy, securities fraud and wire fraud (S.D.N.Y. Case No.
09-cr-00085).
Dreier LLP sought Chapter 11 protection (Bankr. S.D.N.Y. Case No.
08-15051) on Dec. 16, 2008. Stephen J. Shimshak, Esq., at Paul,
Weiss, Rifkind, Wharton & Garrison LLP, was tapped as counsel.
The Debtor estimated assets of $100 million to $500 million, and
debts between $10 million and $50 million in its Chapter 11
petition.
Sheila M. Gowan, a partner with Diamond McCarthy, was appointed
Chapter 11 trustee for the Dreier law firm. Ms. Gowan is
represented by Jason Porter, Esq., at Diamond McCarthy LLP.
Wachovia Bank National Association; the Dreier LLP Chapter 11
Trustee; and Steven J. Reisman as post-confirmation representative
of the bankruptcy estate of 360networks (USA) Inc. signed a
petition that put Mr. Dreier into bankruptcy under Chapter 7 on
Jan. 26, 2009 (Bankr. S.D.N.Y. Case No. 09-10371). Mr. Dreier
pleaded guilty to fraud and other charges in May 2009. The
scheme to sell $700 million in fake notes unraveled in late 2008.
Mr. Dreier is serving a 20-year sentence in a federal prison in
Minneapolis.
ELCOM HOTEL & SPA: Court OKs Stoneleigh-Led Auction on Dec. 4
-------------------------------------------------------------
Stoneleigh Capital, LLC, has agreed to purchase the assets of
Debtors Elcom Hotel & Spa, LLC, and Elcom Condominium, LLC, for
$12,250,000, absent higher and better offers at the auction.
The Debtors filed a motion for approval of proposed bidding
procedures. The Debtors have executed a purchase and sale
agreement with Stoneleigh, which will act as stalking horse bidder
for the assets.
The purchase agreement contemplates, among other things, that at
least 95 of the current rental management agreements between the
Debtors and individual unit owners will be assume and assigned to
the prevailing bidder.
The bankruptcy court conducted a hearing on the auction procedures
and on Nov. 7, 2013, entered an order approving the procedures.
The Debtor has set a Dec. 2 deadline to submit proposals for the
assets, a Dec. 4 auction and a sale hearing for Dec. 9.
According to the order, revisions to the auction procedures
resolved all objections to the procedures. 10295 Collins Avenue,
Residential Condominium Association, Inc., and 10295 Collins
Avenue, Hotel Condominium Association, Inc., had filed limited
objections.
The Hotel Association in its objection requested, among other
things, joint approval rights in relation to the sale process. It
also said that the break-up fee is excessive and that it would
only support a break-up fee capped at $306,250 or 2.5% of the
gross purchase price, as opposed to the $780,000 fee (6.4% of the
gross purchase price) previously agreed by the Debtor and the
purchaser.
The bidding procedures order indicates that the parties have met
half-way: In the event it is outbid, Stoneleigh will receive a
break-up fee of $460,000 (3.75% of gross purchase price), subject
to a showing by Stoneleigh of the reasonableness of the break-up
fee in light of its costs and expenses incurred, as well as time
and resources expended.
The Debtors anticipate funding their Chapter 11 plan with the
proceeds from the sale, which the Debtors anticipate closing on or
before Dec. 31, 2013.
The proposed purchaser is represented by:
Sean Cork, Esq.
SQUIRE SANDERS (US) LLP
200 South Biscayne Blvd., Suite 4100
Miami, FL 33131
E-mail: sean.cork@squiresanders.com
About Elcom Hotel
Elcom Hotel & Spa LLC and Elcom Condominium LLC sought Chapter 11
protection (Bankr. S.D. Fla. Case Nos. 13-10029 and 13-10031) on
Jan. 2, 2013, with plans to sell their hotel and condominium
property.
Elcom Condominium owns nine of the hotel condominium units at the
One Bal Harbor Resort & Spa. The resort is located on five acres
of land in Bal Harbor, Florida. The building and improvements
consist of 185 luxury residential condominium units and 124 hotel
condominium units. Elcom Hotel owns the hotel lot.
Elcom Hotel disclosed $10,378,304 in assets and $20,010,226 in
liabilities as of the Chapter 11 filing. The Debtor owes OBH
Funding, LLC, $1.8 million on a mortgage and F9 Properties, LLC,
formerly known as ANO, LLC, $9 million on a mezzanine loan secured
by a lien on the ownership interests in the project's owner. OBH
Funding and ANO are owned by Thomas D. Sullivan, the manager of
the Debtors.
Corali Lopexz-Castro, Esq., of Kozyak Tropin & Throckmorton, P.A.,
represent the Debtors as bankruptcy counsel. Duane Morris LLP is
the special litigation, real estate, and hospitality counsel.
Algon Capital, LLC, d/b/a Algon Group's Troy Taylor is the
Debtors' chief restructuring officer. Barry E. Mukamal and
Marcum, LLP serve as accountants and financial advisors. The
Barthet Firm is the special litigation collections counsel.
ELCOM HOTEL & SPA: Files Revised Disclosure Statement
-----------------------------------------------------
Elcom Hotel & Spa, LLC, and Elcom Condominium, LLC, late last week
submitted a revised disclosure statement filed in conjunction with
its proposed liquidating plan.
The TCR reported early this month that creditor 10295 Collins
Avenue Residential Condominium Association, Inc., and 10295
Collins Avenue, Hotel Condominium Association, Inc., and the U.S.
Trustee have pointed out numerous deficiencies in the prior
version of the disclosure statement. The U.S. Trustee noted,
among other things, that the document should (i) address the
motion for substantive consolidation recently filed by the
Associations, and (ii) clarify why the proposed treatment of the
general unsecured creditors does not violate sec. 1129 of the
Bankruptcy Code in that similarly situated claims are not
receiving disparate treatment.
The revised disclosure statement indicates that unsecured
creditors are still divided into two classes under the Plan. The
Plan contemplates that holders of general unsecured claims
(expected to total $14 million to $79.1 million) will have a
recovery of 0% to 18%, which will be funded from the pro rata
distribution of "net free cash" and proceeds of causes of action
and remaining assets. Holders of general unsecured vendor claims
(estimated at $500,000 to $971,000) -- those vendors who have
unsecured claims who agree to continue do business with the
Debtors -- will have a recovery of 50%, which will be funded from
the 50% distribution from "net free cash."
Holders of administrative claims and secured claims will be paid
in full. Equity holders won't receive anything.
The revised disclosure statement also incorporates recent
developments in the Chapter 11 case. The Debtor said that the
bankruptcy court has approved a Dec. 4 auction for the assets.
Stoneleigh Capital, LLC, is buying the assets for $12.5 million,
absent higher and better offers.
To effectuate the distributions, the Plan provides that all
remaining assets of the Debtors' estates will vest in a trust on
the effective date of the Plan. The trust will monetize the
remaining assets, continue litigation, and potentially pursue
litigation against other parties. The Debtors have proposed to
fund the trust with the amount of $100,000.
The disclosure statement was signed by Tray Taylor, the CRO, and
submitted by counsel, Corali Lopez-Castro, Esq., at Kozyak Tropin
& Throckmorton, P.A.
A copy of the Revised Disclosure Statement filed Nov. 22, 2013, is
available for free at:
http://bankrupt.com/misc/Elcom_Hotel_DS_112213.pdf
The Debtor is targeting a confirmation hearing on the Plan by
January. The Debtor needs to obtain approval of the Disclosure
Statement before it can begin soliciting votes on the Plan and
schedule a confirmation hearing.
The Associations are expected to oppose confirmation of the Plan.
At the behest of the bankruptcy judge, the Debtor and the
Associations entered into mediation with respect to plan-related
issues in September. But the plan mediation resulted in an
impasse.
About Elcom Hotel
Elcom Hotel & Spa LLC and Elcom Condominium LLC sought Chapter 11
protection (Bankr. S.D. Fla. Case Nos. 13-10029 and 13-10031) on
Jan. 2, 2013, with plans to sell their hotel and condominium
property.
Elcom Condominium owns nine of the hotel condominium units at the
One Bal Harbor Resort & Spa. The resort is located on five acres
of land in Bal Harbor, Florida. The building and improvements
consist of 185 luxury residential condominium units and 124 hotel
condominium units. Elcom Hotel owns the hotel lot.
Elcom Hotel disclosed $10,378,304 in assets and $20,010,226 in
liabilities as of the Chapter 11 filing. The Debtor owes OBH
Funding, LLC, $1.8 million on a mortgage and F9 Properties, LLC,
formerly known as ANO, LLC, $9 million on a mezzanine loan secured
by a lien on the ownership interests in the project's owner. OBH
Funding and ANO are owned by Thomas D. Sullivan, the manager of
the Debtors.
Corali Lopexz-Castro, Esq., of Kozyak Tropin & Throckmorton, P.A.,
represent the Debtors as bankruptcy counsel. Duane Morris LLP is
the special litigation, real estate, and hospitality counsel.
Algon Capital, LLC, d/b/a Algon Group's Troy Taylor is the
Debtors' chief restructuring officer. Barry E. Mukamal and
Marcum, LLP serve as accountants and financial advisors. The
Barthet Firm is the special litigation collections counsel.
ENNIS COMMERCIAL: Ben Ennis Trustee's Bid as Manager Has Objection
------------------------------------------------------------------
The bankruptcy court in Fresno, California, will convene a hearing
on Dec. 3, 2013 at 1:30 p.m. to consider approval of the
application of Terence Long, the Chapter 11 trustee for the estate
of Ben A. Ennis, to be the manager for the estate.
David Stapleton, the plan administrator with respect to the plan
of liquidation of Ben A. Ennis, says he is opposing Mr. Long's
application to employ himself as manager of the bankruptcy estate
because the application is part of an effort by Mr. Long to avoid
"the financial sting of a potential loss in his fee dispute."
Mr. Stapleton explains that the most recent interim request for
reimbursement by Long, the Chapter 11 trustee for Ennis, has been
denied and Mr. Long's final fee application filed July 25 is still
being litigated. Mr. Stapleton says that Mr. Long is seeking to
be appointed as manager on a retroactive basis in order to recover
fees for the purported administration of the estate.
Mr. Stapleton avers that Mr. Long may not have second bite at the
apple for no better purpose than to recover fees. "It is not
supported by the law; it is not supported by a sudden epiphany of
what the Court's order appointing him as a Chapter 11 trustee
meant, particularly after being counseled by two competent chapter
11 attorneys for two years; and it is curiously timed to coincide
with the proceedings in this bankruptcy," he says.
Mr. Stapleton says the sole basis for Mr. Long's application is
captured by one sentence from his declaration: "I am filing this
application on a nunc pro tunc basis as I learned just recently
that my compensation was going to be limited to direct
disbursements for Ben Ennis and cash turned over to the plan
administrator."
August B. Landis, Acting United States Trustee, is also opposing.
The applicant's final fee application as chapter 11 trustee seeks
total fees of $245,465. The current application to employ
Mr. Long as estate manager nunc pro tunc anticipates paying
Mr. Long $245,295 pursuant to a separate fee application, with a
credit for any amount paid to Mr. Long as chapter 11 trustee. In
essence, Mr. Long seeks to avoid application of 11 U.S.C. Section
326(a), and get paid as manager for any amount he doesn't get paid
as chapter 11 trustee, the U.S. Trustee points out.
The hearing on the final fee application of Mr. Long has been
continued to Dec. 3.
The U.S. Trustee avers that 11 U.S.C. Section 327(d) limits a
trustee's ability to employ himself to only an attorney or
accountant and Congress has not authorized a trustee's self-
employment in other capacities.
David Stapleton, the plan administrator for the Ben Ennis Plan, is
represented by:
Rene Lastreto, II, Esq.
Michael J. Gomez, Esq.
Alice M. Dostalova-Busick, Esq.
LANG, RICHERT & PATCH
Post Office Box 40012
Fresno, CA 93755-0012
Tel: (559) 228-6700
Fax: (559) 228-6727
E-mail: rl2@lrplaw.net
mjg@lrplaw.net
amd@lrplaw.net
About Ennis Commercial
Porterville, California-based Ennis Commercial Properties, LLC's
business consists of acquiring raw land and building commercial
developments. The Company then either operates or sells the
commercial buildings comprising the commercial development.
ECP is owned by Ben Ennis, Brian Ennis and Pamela Ennis, in equal
shares. On Sept. 20, 2010, Pam Ennis and Brian Ennis transferred
all of their ownership interests in ECP to Ben Ennis. ECP filed
for Chapter 11 bankruptcy protection (Bankr. E.D. Cal. Case No.
10-12709) on March 16, 2010.
Peter L. Fear, Esq., and Gabriel J. Waddell, Esq., at the Law
Offices of Peter L. Fear, in Fresno, Calif., represent ECP as
counsel. No creditors committee has been formed in the case.
In its schedules, the Debtor disclosed $40,878,319 in assets and
$43,922,485 in liabilities.
Ben Ennis filed a voluntary petition under Chapter 11 (Bankr. E.D.
Calif. Case No. 10-62315) on Oct. 25, 2010.
On May 25, 2011, Terence Long was appointed as Chapter 11 Trustee
in the Benn Ennis bankruptcy. Consequently, the Chapter 11
Trustee stands in the shoes of Ben Ennis, and holds all of the
membership interests in ECP and controls it accordingly. Justin
D. Harris, Esq., at Motschiedler, Michaelides, Wishon, Brewer &
Ryan, LLP, in Fresno, represents the Chapter 11 Trustee as
counsel.
The plan of reorganization proposed by secured creditor Wells
Fargo Bank for Ben Ellis was confirmed on June 27, 2013.
David Stapleton was named plan administrator.
ENOVA SYSTEMS: Incurs $353,000 Net Loss in Third Quarter
--------------------------------------------------------
Enova Systems, Inc., filed with the U.S. Securities and Exchange
Commission its quarterly report on Form 10-Q disclosing a net loss
of $353,000 on $140,000 of revenues for the three months ended
Sept. 30, 2013, as compared with a net loss of $749,000 on
$152,000 of revenues for the same period during the prior year.
For the nine months ended Sept. 30, 2013, the Company reported a
net loss of $1.09 million on $425,000 of revenues as compared with
a net loss of $4.75 million on $1.05 million of revenues for the
same period a year ago.
As of Sept. 30, 2013, the Company had $2.22 million in total
assets, $5.94 million in total liabilities and a $3.72 million
total stockholders' deficit.
Enova Systems was unable to compile certain information required
to prepare a complete filing. As a result, the Company was unable
to file its Quarterly Report on Form 10-Q for the quarter ended
Sept. 30, 2013, in a timely manner without unreasonable effort or
expense. The Company expects to file its Quarterly Report on Form
10-Q within the extended period.
A copy of the Form 10-Q is available for free at:
http://is.gd/aRL13B
About Enova Systems
Torrance, Calif.-based Enova Systems, Inc., engages in the
development, design and production of proprietary, power train
systems and related components for electric and hybrid electric
buses and medium and heavy duty commercial vehicles.
In its report on the consolidated financial statements for the
year ended Dec. 31, 2012, PMB Helin Donovan, LLP, in San
Francisco, California, expressed substantial doubt about Enova
Systems' ability to continue as a going concern, citing the
Company's significant recurring losses and accumulated deficit.
The Company reported a net loss of $8.2 million on $1.1 million of
revenues in 2012, compared with a net loss of $7.0 million on
$6.6 million of revenues in 2011.
Bankruptcy warning
On Dec. 12, 2012, a judgment was entered by the United States
District Court Northern District of Illinois in favor of Arens
Controls Company, L.L.C., in the amount of $2,014,169 regarding
claims for two counts. In 2008, Arens Controls Company, L.L.C.
filed claims against Enova with the United States District Court
Northern District of Illinois. A Partial Settlement Agreement, as
amended on Jan. 14, 2011, resolved certain claims made by Arens.
However, the claims were preserved under two remaining counts
concerning (i) anticipatory breach of contract by Enova for
certain purchase orders that resulted in lost profit to Arens and
(ii) reimbursement for engineering and capital equipment costs
incurred by Arens exclusively for the fulfillment of certain
purchase orders received from Enova.
The Company filed a notice of appeal on Jan. 15, 2013. The
Company believes the court committed errors leading to the verdict
and judgment, and the Company is evaluating its options on appeal.
"However, there can be no assurance that the appeal will be
successful or a negotiated settlement can be attained or that
Arens will assert its claim in the state of California, and
thereby cause the Company to go into bankruptcy," the Company said
in its quarterly report for the period ended March 31, 2013.
ENTERPRISE CHARTER: Fitch Slashes $7.3MM Bonds Rating to 'B'
------------------------------------------------------------
Fitch Ratings downgrades approximately $7.3 million of revenue
bonds of the Erie County Industrial Development Agency, issued on
behalf of Enterprise Charter School (ECS) in Buffalo, NY to 'B'
from 'BB'. Fitch maintains the bonds on Rating Watch Negative.
Security:
The bonds are secured by a pledge of revenues of ECS, a first
mortgage lien on the facilities of ECS, assignments of rents and
leases receivable and a cash funded debt service reserve fund.
Key Rating Drivers:
Short Term Charter Renewal:
The downgrade to 'B' reflects ECS' one-year charter expiring in
June 2014. The rating indicates that material default risk is
present but a limited margin of safety remains. Financial
commitments are currently being met, but there is a vulnerability
to deterioration in the business environment, specifically due to
ECS' one-year charter. When Fitch last reviewed ECS, the school
was in the process of seeking a preliminary injunction to
forestall the shorter-term renewal in favor of a two- to three-
year renewal to remedy academic deficiencies relative to the
charter. ECS' cessation of those efforts and acceptance of the
one-year charter leaves the school operating under a very tight
time frame in which to make the necessary changes to meet
authorizer requirements. Further negative rating action is very
likely if ECS' charter is not renewed.
Ongoing Renewal Concerns:
ECS is taking steps to resolve authorizer concerns relating to
academic performance and expects to revise the articles of the
charter to better reflect achievable results. Fitch considers the
inability to successfully negotiate charter terms highly
detrimental to ECS' ongoing ability to operate and would pressure
the rating.
Uncertainty In Process and Resolution:
The Rating Watch Negative reflects the uncertainty that Buffalo
Public Schools (BPS), ECS' authorizer, will grant a charter
renewal for the fall 2014 academic year. BPS is currently in the
process of evaluating the school and reviewing the improvements
made to the delivery of academic programs. The decision and
results of BPS' review is expected to resolve the pending concerns
in the coming months and this shorter timeline necessitates the
maintenance of the rating watch negative.
Management Changes:
ECS hired a new CEO who started in September of this year, and
continues to contract with an external financial manager. The
school possesses some of the strongest financial metrics within
Fitch's charter school portfolio, but the focus remains on ECS'
ability to demonstrate improvement deemed sufficient, by the
authorizer, to retain its charter.
Rating Sensitivities:
RATING WATCH CONSIDERATIONS: The Rating Watch reflects uncertainty
regarding the outcome of the school's charter renewal evaluation
process by BPS and the ability to revise the articles of the
charter. The inability to gain a renewal or revise the charter
would likely necessitate further negative rating action.
Credit Profile:
Operating Environment Challenges:
The rating downgrade to 'B' reflects ECS acceptance and operation
under a one year charter as of June 2013, accompanied with the
likelihood of a non-renewal in June 2014. If the charter is not
renewed in the coming year, ECS could continue to operate under a
provisional charter, if approved by the authorizer or in a worst
case scenario, or, be forced to close at the end of the 2013-2014
school year. Fitch anticipates feedback from the charter
authorizer prior to the end of the 2014 school year which could
inform a resolution or a further rating action. If there is indeed
an event of non-renewal accompanied by acceleration of the bonds,
ECS would have limited wherewithal to pay off all the debt coming
due immediately and an event of default could occur.
Charter Revision May Be Sought:
The uncertainty associated with a one-year charter is far greater
than would be expected for a school that normally operates under a
five-year charter. In this specific case, Fitch is concerned that
ECS could reasonably improve its academic performance but still
fall short of its initial charter articles (originally specified
for operations initiated in 2003). Unless ECS is allowed to revise
the charter terms, it will consistently fall short and be subject
to renewal challenges, even if it receives a renewal in June of
2014.
Enrollment And Financial Performance Stable:
ECS' fall enrollment is at capacity with approximately 405
students for its K-8 classes. Fiscal 2013 results indicate a
positive operating margin of 9.3% and growth in liquidity of about
$850,000. Available funds for ECS total $3.86 million, comprising
71.5% of operating expenditures and 53.6% of long term debt. Pro
forma MADS of $616k is covered 2.3x with net income available for
DS with the MADS burden remaining manageable at 10.3% of
unrestricted operating revenue. These ratios rank among the
strongest among Fitch's charter school ratings.
ECS is currently in compliance with its financial covenants and
relatively well funded with $3.86 million in unrestricted cash and
investments, a fully funded debt service reserve and plant asset
value which could defray costs of dissolving the outstanding debt
($7.1 million). However, Fitch would view the need to pay-off the
bonds negatively as it would be as a result of non-renewal of the
charter and would extinguish all liquid resources of ECS. The
Rating Watch Negative is expected to be resolved upon Fitch being
notified of the status of ECS' charter renewal for the 2014-2015
school year.
EXCEL MARITIME: Reaches Deal on Modified Reorganization Plan
------------------------------------------------------------
Excel Maritime Carriers Ltd. on Nov. 27 disclosed that it has
reached an agreement on the terms of a Modified Plan of
Reorganization with its senior secured lenders and the Official
Committee of Unsecured Creditors, which was filed with United
States Bankruptcy Court for the Southern District of New York.
"We are pleased to have reached this agreement with our lenders
and bondholders, which positions Excel Maritime for future growth
and success," said Gabriel Panayotides, Chairman of the Board.
"This is a significant development that sets the path for us to
exit from Chapter 11, which we anticipate to occur in February
2014."
As part of the Plan, Excel Maritime's senior secured lenders and
its bondholders have agreed to convert certain debt to equity,
thereby positioning the Company for increased financial
flexibility. After the completion of the restructuring process,
the Company's total prepetition debt of $920 million will be
reduced down to $300 million. In addition, Excel's management
team, under the leadership of Mr. Panayotides, will drive the
Company's future growth.
Excel's operations have continued in the ordinary course
throughout the restructuring process and it will continue
providing its high-quality and efficient seaborne transportation
services moving forward.
The Plan is subject to the approval of voting creditors and
confirmation by the Court. The Company anticipates commencing
solicitation on the Plan in mid-December. The Court has reserved
January 27, 2014 to hold a confirmation hearing on the Plan. This
release is not intended as a solicitation for a vote on the Plan.
Additional information about Excel Maritime's financial
restructuring is available at 212-771-1128. A website has also
been set up by Excel Maritime's Claims Agent containing the
motions filed with the Court, other Court documents and other
general information at http://www.donlinrecano.com/exm
Revamped Plan
Peg Brickley, writing for Daily Bankruptcy Review, reported that
the leading creditors of Excel Maritime Carriers have agreed to
overhaul the Chapter 11 debt restructuring plan that will see the
shipping company out of bankruptcy, boosting the value going to
bondholders and heading off a potentially disastrous court fight.
The shipping company said the revamped Chapter 11 bankruptcy exit
plan sets out terms of a revised restructuring strategy which will
end the discord that has troubled Excel's attempt to resolve an
unworkable load of debt, company attorneys said in a filing with
the U.S. Bankruptcy Court for the Southern District of New York.
About Excel Maritime
Based in Athens, Greece, Excel Maritime Carriers Ltd. --
http://www.excelmaritime.com/-- is an owner and operator of dry
bulk carriers and a provider of worldwide seaborne transportation
services for dry bulk cargoes, such as iron ore, coal and grains,
as well as bauxite, fertilizers and steel products. Excel owns a
fleet of 40 vessels and, together with 7 Panamax vessels under
bareboat charters, operates 47 vessels (5 Capesize, 14 Kamsarmax,
21 Panamax, 2 Supramax and 5 Handymax vessels) with a total
carrying capacity of approximately 3.9 million DWT. Excel Class A
common shares have been listed since Sept. 15, 2005, on the New
York Stock Exchange (NYSE) under the symbol EXM and, prior to that
date, were listed on the American Stock Exchange (AMEX) since
1998.
The company blamed financial problems on low charter rates.
The balance sheet for December 2011 had assets of $2.72 billion
and liabilities totaling $1.16 billion. Excel owes $771 million
to secured lenders with liens on almost all assets. There is $150
million owing on 1.875 percent unsecured convertible notes.
Excel Maritime filed a Chapter 11 petition (Bankr. S.D.N.Y. Case
No. 13-23060) on July 1, 2013, in New York after signing an
agreement where secured lenders owed $771 million support a
reorganization plan filed alongside the petition. The Debtor
disclosed $35,642,525 in assets and $1,034,314,519 in liabilities
as of the Chapter 11 filing.
Excel, which sought bankruptcy with a number of affiliates, has
tapped Skadden, Arps, Slate, Meagher & Flom LLP, as counsel;
Miller Buckfire & Co. LLC, as investment banker; and Global
Maritime Partners Inc., as financial advisor.
A five-member official committee of unsecured creditors was
appointed by the U.S. Trustee. The Creditors' Committee is
represented by Michael S. Stamer, Esq., Sean E. O'Donnell, Esq.,
and Sunish Gulati, Esq., at Akin Gump Strauss Hauer & Feld LLP, in
New York; and Sarah Link Schultz, Esq., at Akin Gump Strauss Hauer
& Feld LLP, in Dallas, Texas. Jefferies LLC serves as the
Committee's investment banker.
The Debtors' Chapter 11 plan filed on July 15, 2013, proposes to
implement a reorganization worked out before a July 1 bankruptcy
filing. The plan will give ownership to secured lenders owed $771
million, although the lenders will allow current owner Gabriel
Panayotides to keep control, at least initially. Unsecured
creditors with claims totaling $163 million will receive a $5
million, eight percent note for a predicted recovery of 3 percent.
Holders of $150 million in unsecured convertible notes make up the
bulk of the unsecured-claim pool.
FANNIE MAE: Pershing Square Held 9.9% Equity Stake at Nov. 15
-------------------------------------------------------------
In a Schedule 13D filed with the U.S. Securities and Exchange
Commission, Pershing Square Capital Management, L.P., and its
affiliates disclosed that as of Nov. 15, 2013, they beneficially
owned 115,569,796 shares of common stock of Federal National
Mortgage Association representing 9.98 percent based on
1,158,080,657 shares of common stock, of the Company outstanding
as of Sept. 30, 2013, as reported in its quarterly report on Form
10-Q. A copy of the Form 10-Q is available for free at:
http://is.gd/Vcn6RC
About Fannie Mae
Federal National Mortgage Association, aka Fannie Mae, is a
government-sponsored enterprise that was chartered by U.S.
Congress in 1938 to support liquidity, stability and affordability
in the secondary mortgage market, where existing mortgage-related
assets are purchased and sold.
The U.S. Department of the Treasury owns Fannie Mae's senior
preferred stock and a warrant to purchase 79.9 percent of its
common stock, and Treasury has made a commitment under a senior
preferred stock purchase agreement to provide Fannie with funds
under specified conditions to maintain a positive net worth.
Conservatorship
Fannie Mae has operated under the conservatorship of the Federal
Housing Finance Agency since Sept. 6, 2008. Fannie Mae has not
received funds from Treasury since the first quarter of 2012. The
funding the company has received under the senior preferred stock
purchase agreement with the U.S. Treasury has provided the company
with the capital and liquidity needed to maintain its ability to
fulfill its mission of providing liquidity and support to the
nation's housing finance markets and to avoid a trigger of
mandatory receivership under the Federal Housing Finance
Regulatory Reform Act of 2008. For periods through March 31,
2013, Fannie Mae has requested cumulative draws totaling $116.1
billion. Under the senior preferred stock purchase agreement, the
payment of dividends cannot be used to offset prior Treasury
draws. Accordingly, while Fannie Mae has paid $35.6 billion in
dividends to Treasury through March 31, 2013, Treasury still
maintains a liquidation preference of $117.1 billion on the
company's senior preferred stock.
In August 2012, the terms governing the company's dividend
obligations on the senior preferred stock were amended. The
amended senior preferred stock purchase agreement does not allow
the company to build a capital reserve. Beginning in 2013, the
required senior preferred stock dividends each quarter equal the
amount, if any, by which the company's net worth as of the end of
the preceding quarter exceeds an applicable capital reserve
amount. The applicable capital reserve amount is $3.0 billion for
each quarter of 2013 and will be reduced by $600 million annually
until it reaches zero in 2018.
The amount of remaining funding available to Fannie Mae under the
senior preferred stock purchase agreement with Treasury is
currently $117.6 billion. Fannie Mae is not permitted to redeem
the senior preferred stock prior to the termination of Treasury's
funding commitment under the senior preferred stock purchase
agreement.
FINJAN HOLDINGS: Presents at IP Business Congress Asia Conference
-----------------------------------------------------------------
Finjan Holdings, Inc., intends to hold a presentation for certain
stockholders, potential investors and their representatives
regarding the business and historical and projected performance of
the Company at the IP Business Congress Asia. A copy of the
presentation is available for free at http://is.gd/pq5ObF
About Finjan
Finjan, formerly known as Converted Organics, is a leading online
security and technology company which owns a portfolio of patents,
related to software that proactively detects malicious code and
thereby protects end-users from identity and data theft, spyware,
malware, phishing, trojans and other online threats. Founded in
1997, Finjan is one of the first companies to develop and patent
technology and software that is capable of detecting previously
unknown and emerging threats on a real-time, behavior-based basis,
in contrast to signature-based methods of intercepting only known
threats to computers, which were previously standard in the online
security industry.
Converted Organics disclosed a net loss of $8.42 million in 2012,
as compared with a net loss of $17.98 million in 2011. The
Company's balance sheet at Sept. 30, 2013, showed $30.35 million
in total assets, $927,000 in total liabilities and $29.42
million in total stockholders' equity.
Moody, Famiglietti & Andronico, LLP, in Tewksbury, Massachusetts,
issued a "going concern" qualification on the consolidated
financial statements for the year ended Dec. 31, 2012, citing
recurring losses and negative cash flows from operations and an
accumulated deficit that raises substantial doubt about the
Company's ability to continue as a going concern.
FISKER AUTOMOTIVE: Aims to Sell and Confirm Plan by Jan. 3
----------------------------------------------------------
Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reports that Fisker Automotive Inc., the electric-car maker that
filed for bankruptcy protection on Nov. 22, is pushing ahead to
sell the business and win court approval of a Chapter 11 plan by
Jan. 3.
According to the report, founded in 2007, Fisker sold only 1,800
of its Karma plug-in hybrid electric sedans before production
halted last year. The bankruptcy filing came immediately after
Hybrid Tech Holdings LLC bought the $165.5 million secured loan
made by the U.S. Department of Energy.
The plan calls for holding an auction Jan. 3 to determine if
Hybrid Tech has the best offer to buy the business. The
bankruptcy court in Delaware approved auction and sale procedures
on Nov. 26. Objections to the sale are due Dec. 27.
On Nov. 26, the bankruptcy court also gave interim approval for a
$1.7 million loan, scheduled for increase to $8.1 million at a
final financing hearing on Dec. 16.
Fisker doesn't intend to hold an auction, on the theory that no
one could outbid Hybrid Tech since it could pay with the entire
amount of the government loan.
Hybrid Tech is offering to buy the assets in exchange for $75
million of that loan. It will also supply $725,000 in cash for
distribution to creditors under the liquidating Chapter 11 plan
filed last week. In addition, the buyer will waive the $8 million
loan to finance bankruptcy.
The plan provides that unsecured creditors with about $280 million
in claims will share $500,000 from the cash supplied by Hybrid
Tech, although only if the class votes for the plan. Similarly,
Hybrid Tech will waive its unsecured deficiency claim only if the
class votes "yes."
The disclosure statement currently has a blank where unsecured
creditors later will be told their predicted percentage recovery.
Similarly, the draft disclosure statement is blank where the
percentage recovery for Hybrid Tech will be stated.
Fisker wants the bankruptcy court to hold a hearing on Dec. 10 for
approval of disclosure materials, so creditors can vote on the
plan.
Secured creditor Silicon Valley Bank, with a claim of $6.6
million, is slated to take home $225,000 from the cash supplied by
Hybrid Tech. The bank's percentage recovery is blank for the time
being.
On Nov. 26, a former worked filed a lawsuit in bankruptcy on
behalf of himself and about 160 other employees fired in April
without the 60-day notice required by federal and California law.
If successful, the suit would give each worker a claim for as much
as $12,500, assuming there is cash available to pay priority
claims.
About Fisker Automotive
Fisker Automotive Holdings, Inc., developer of the Karma plug-in
hybrid electric sedan, filed a petition for Chapter 11 protection
(Bankr. D. Del. Case No. 13-bk-13087) on Nov. 22, 2013, with plans
to sell the business to Hybrid Tech Holdings, LLC.
Fisker Automotive Holdings and debtor-affiliate Fisker Automotive
Inc. disclosed that they have entered into an asset purchase
agreement with Hybrid for the sale of substantially all of its
assets.
Fisker estimated assets of more than $100 million and listed debt
of $500 million in its bankruptcy petition. The assets include a
plant purchased for $21 million from General Motors Corp. The
plant never operated. The cars were assembled in Finland. Fisker
now has 21 employees.
Fisker received a $529 million loan from the Department of
Energy's Advanced Technology Vehicles Manufacturing Loan Program
and drew down about $192 million before the department froze the
loan after Fisker failed to hit several development targets. The
company defaulted on its loan in April 2013.
FISKER AUTOMOTIVE: Gets Interim OK for $8-Mil. DIP Loan
-------------------------------------------------------
Law360 reported that a Delaware bankruptcy judge on Nov. 26 gave
interim approval to an $8 million post-petition loan for Fisker
Automotive Holdings Inc., and allowed the electric-auto maker to
schedule a high-speed case that would see a private sale and
Chapter 11 plan considered simultaneously in early January.
According to the report, U.S. Bankruptcy Judge Kevin Gross allowed
Fisker to tap $1.7 million of the debtor-in-possession financing
from proposed buyer Hybrid Technology LLC on an interim basis and
lauded the loan's terms -- which the debtors say comes at no cost.
About Fisker Automotive
Fisker Automotive Holdings, Inc., developer of the Karma plug-in
hybrid electric sedan, filed a petition for Chapter 11 protection
(Bankr. D. Del. Case No. 13-bk-13087) on Nov. 22, 2013, with plans
to sell the business to Hybrid Tech Holdings, LLC.
Fisker Automotive Holdings and debtor-affiliate Fisker Automotive
Inc. disclosed that they have entered into an asset purchase
agreement with Hybrid for the sale of substantially all of its
assets.
Fisker estimated assets of more than $100 million and listed debt
of $500 million in its bankruptcy petition. The assets include a
plant purchased for $21 million from General Motors Corp. The
plant never operated. The cars were assembled in Finland. Fisker
now has 21 employees.
Fisker received a $529 million loan from the Department of
Energy's Advanced Technology Vehicles Manufacturing Loan Program
and drew down about $192 million before the department froze the
loan after Fisker failed to hit several development targets. The
company defaulted on its loan in April 2013.
FISKER AUTOMOTIVE: Case Summary & 35 Largest Unsecured Creditors
----------------------------------------------------------------
Debtor entities filing separate Chapter 11 cases:
Debtor Case No.
------ --------
Fisker Automotive, Inc. 13-13086
5515 E. La Palma Ave.
Anaheim, CA 92807
Fisker Automotive Holdings, Inc. 13-13087
5515 E. La Palma Ave.
Anaheim, CA 92807
Type of Business: Electric Carmaker
Chapter 11 Petition Date: November 22, 2013
Court: United States Bankruptcy Court
District of Delaware (Delaware)
Judge: Hon. Kevin Gross
Debtors' Counsel: Laura Davis Jones, Esq.
Peter J. Keane, Esq.
PACHULSKI STANG ZIEHL & JONES LLP
919 N. Market Street, 17th Floor
Wilmington, DE 19899-8705
Tel: 302 652-4100
Fax: 302-652-4400
Email: ljones@pszjlaw.com
pkeane@pszjlaw.com
Debtors' Claims Rust Consulting/Omni Bankruptcy
Agent:
Estimated Assets: $100 million to $500 million
Estimated Debts: $500 million to $1 billion
The petitions were signed by Marc Bellinson, chief restructuring
officer.
Consolidated List of Debtors' 35 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
BMW Group Contract $74,000,000
Petuelring 130 Damages
Muenchen 80788 Germany
Tel: 49-89-382-32966
Fax: 49-89-382-25858
Email: josef.sb.schmid@bmw.de
Varroc Lighting Systems, Inc. Trade Payable $11,408,442
Attn: Scott Borovich
17187 Laurel Park, Suite 200
Livonia, MI 48150
Tel: 734-446-4414
Email: sborovil@varroclighting.com
Magna Powertrain Trade Payable $11,174,935
Attn: Alan Fratarcangeli Casey Gee
Magna Technical Center
1955 Enterprise Dr.
Rochester Hills, MI 48309
Tel: 248-265-4457 or 248-567-4468
Fax: 248-567-5000
Email: Alan.Fratarcangeli@magnaecar.com;
casey.gee@magna.com
GP Supercars Trade Payable $10,000,000
c/o Zamansky
Attn: Jacob H. Zamansky
50 Broadway, 32nd Floor
New York, NY 10004
Tel: 212-742-1414
Fax: 212-742-1177
Email: jake@zamansky.com
Transmisiones Y Equipos Mecanicos S Trade Payable $8,797,966
(Tremec)
Attn: Robert A. Neal
14700 Helm Court
Plymouth, MI 48170
Tel: 734-456-3700
Fax: 734-456-3739
Email: dave.hadley.tremec.com
Valmet Automotive Trade Payable $8,502,172
Attn: Ilpo Korhonen
Domicile Uusikaupunki
Finland
Tel: 358-50-317-1517
Fax: 358-20-484-9109
Email: erik.torseke@valmet-automotive.com
Changshu Intier Automotive Trade Payable $7,121,925
Interiors Co., Ltd
Attn: Guy Holland
288 Haiyu N. Rd., Changshu
215500 Jiangsu, China
Tel: 86-512-52-33-3515
Email: guyholland@ciai.com.en
ZF North America, Inc. Trade Payable $5,357,243
Attn: Thomas J. Schank
15811 Centennial Dr.
Northville, MI 48168
Tel: 734-582-1189
Fax: 734-416-8331
Air International (US), Inc. Trade Payable $4,800,000
Attn: John A. Sinelli
1265 Harmon Rd
Auburn Hills, MI 48326
Tel: 248-391-7764
Fax: 248-819-1839
Email: jsinelli@ai-thermal.com
Jing-Jin Electric Technologies Trade Payable $4,478,499
Attn: Ping Nu
Building A5, Putianshiye Technology Park
No.5 Jiangtai Road, Chaoyang District
Beijing 100016 China
Tel: 86-10-6433-8799
Fax: 86-10-6439-8479
Email: ping.yu@jjcen.com
General Motors Comp. Holdings, LLC Trade Payable $3,715,112
200 Upper Mountain Road
Lockport, NY 14094
Tel: 716-439-3851
Fax: 716-439-2550
MTA USA Corp Trade Payable $3,131,705
do Bryan Cave, LLP
Attn: Aaron E. Davis
161 N. Clark St., #4300
Chicago, IL 60601
Tel: 312-602-5135
Fax: 312-698-7535
Email: aaron.davisbryancave.com
Kuster Automotive Door Systems Gmbh Trade Payable $2,988,047
Attn: Joohen Burk
Am Bohnhof 13
35630 Ehringshausen Germany
Tel: 0-64-43-62-0
Fax: 0-64-43-6-23-75
Email: ads@kuester.net
Visteon Corporation Trade Payable $2,082,412
Attn: Sam Khoury
One Village Ctr. Dr.
Visteon Village Bldg. 25, 3rd Fl.
Van Buren Township, Ml 48111
Tel: 734-710-4424
Fax: 734-710-7122
Email: skhouryl@visteon.com
Denso International America In Trade Payable $2,000,000
24777 Denso Dr.
Southfield, MI 48086
Tel: 248-372-8508
Fax: 248-213--2472
Email: jayne_monroedenso-diam.com
Amino North America Corporation Trade Payable $1,277,106
do Brown Beattie O'Donovan
Attn: Max P. Prince
600-380 Wellington Street
London, ON N6A 5B5 Canada
Tel: 519-679-0400 Ext. 166
Fax: 519-679-6350
Email: mprince@bbo.on.ca
Ogihara America Corp Trade Payable $1,138,311
1480 W McPherson Park Drive
Howell, MI 48843
Tel: 517-545-2176
Fax: 515-548-6079
Email: sgorelic@ogihara.com
Seger OY Trade Payable $1,006,837
Merilinnuntie 1
Uusikaupunki 5 23500
Finland
Tel: 358-40-079-0432
Fax: 358-2-846-6999
Email: seppo.yla-himankasegertech.com
TK Holdings INC Trade Payable $944,840
2500 Takata Drive
Auburn Hills, Ml 48326
Tel: 248-340-7663
Fax: 248-373-2897
Email: mike.demauric@takata.com
Exhibit Works, Inc. Trade Payable $942,122
do Ruggerello Law Group L.L.P.
Attn: Ryan P. Ruggerello
4041 MacArthur Boulevard, Suite 300
Newport Beach, CA 92660
Tel: 949-293-7689
Email: ryan@ruggerellolaw.com
New Castle County Property Taxes $936,292
Attn: Office of Finance
87 Reads Way
New Castle, DE 19720
Tel: 302-323-2600
Email: dgrimaldi@nccde.org
Safeco Insurance Company Trade Payable $892,460
175 Berkeley Street
Boston, MA 02116
Android Industries LLC Trade Payable $886,903
Attn: Jason Vardon
2155 Executive Hills Blvd.
Auburn Hills, MI 48326
Tel: 245-613-7499
Fax: 248-454-0501
Email: jvardon@android -ind.com
eMaxx Partners LLC Trade Payable $877,802
10 Hermitage Lane
Laguna Niguel, CA 92677
Tel: 949-366-3180
Fax: 949-366-3180
Email: mhale@emaxxpartners.com
Orrick Herrington & Sutcliffe Trade Payable $845,864
Attn: Mitch Zuklie
Dept. 34461
San Francisco, CA 94139
Tel: (650) 614-7649
Fax: 1(415) 773-5759
Email: mzuklie@orrick.com
Flex-N-Gate Trade Payable $792,000
1306 East University Ave
Urbana, IL 61802
Tel: 586-759-8622
Fax: 586-759-8999
Email: dknapp@flexngate -mi.com
Ficotriad SA Trade Payable $754,396
Avda. Josep Pujo, S/N
Rubi, Barcelona 08191 Spain
Tel: 34-935-610-114
Email: david.pascual@ficosa.com
Howard Ternes Packaging Co. Trade Payable $737,544
12285 Dixie Street
Redford, MI 48239
Tel: 313-531-5867
Fax: 313-531-2734
Email: da@ternespkg.com
Swift Demolition Litigation $705,000
469 Old Airport Rd.
New Castle, DE 19720
Tel: 302-650-4579
Fax: 302-328-1837
Email: swiftsalvage@yahoo.com
Core-Tech, Inc Trade Payable $669,174
3171 John Conley Dr.
Lapeer, MI 48446
Tel: 248-760-4113
Fax: 248-651-1449
Email: davidphillips@core -technic.com
Sterling Die & Engineering Inc Litigation $656,724
c/o Berry Moorman
15767 Claire CT
Macomb, MT 48042
Tel: 248-645-9680
Fax: 248-645-1233
Email: jschrotberrymoorman.com
Model Master Spa Trade Payable $649,380
Attn: Enrico Spedale
Via Vittime di Piazza Fontana, 38
Moncalieri 10027 Italy
Tel: 39-011-689-4656
Fax: 39-011-681-3042
Email: enrico.spedale@model-master.com
Continental Automotive Systems Inc Trade Payable $602,115
One Continental Drive
Auburn Hills, MT 48326
Tel: 248-393-5300
Fax: 248-393-6432
Email: craig.andreski@continental-
corporation.com
M2 Motors Trade Payable $590,166
do Frantz Ward LLP
Attn: Emily C. Barlage
2500 Key Center
127 Public Square
Cleveland, OH 44114
Tel: 216-515-1660
Fax: 216-515-1650
Email: ebarlagefrantzward.com
Yokohama Tire Corporation Trade Payable $570,655
Attn: Tsuyoshi Johnson
2851 High Meadow Circle, Ste. 180
Auburn Hills, MI 48326
Tel: 248-538-2891
Fax: 248-377-1027
Email: jeremy.kahrsyokohamatire.com
FLORIDA GAMING: Fronton Looks Toward March 25 Auction
-----------------------------------------------------
Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reports that the Miami Jai-Alai fronton and casino will be sold at
auction on March 25, if the bankruptcy judge goes along with
suggested sale procedures.
According to the report, this week, the facility's owner filed
papers to set up a hearing in the Miami bankruptcy court on Dec.
11 for approval of sale procedures. If the judge agrees, bids
would be due March 19, with a hearing to approve a sale on March
26.
Before the sale-procedure hearing, the casino owner said it
expects to have a signed contract where Silvermark LLC will commit
to pay $115 million in cash plus debt assumption. Before
bankruptcy, Silvermark was under contract for the same price, plus
$14 million in debt assumption.
The sale process results from an interim settlement with secured
lenders requiring a sale of the facility by March 31.
A crucial issue in the case is whether the lenders are entitled to
a premium of $26.8 million in addition to $90 million in
principal. This month, the casino sued to invalidate the premium.
Lenders include Summit Partners LP and Canyon Value Realization
Fund LP. The casino contends they are trying to take ownership
through a "loan to own" scheme. The lenders are allowed to pay for
the casino in exchange for debt, according to a court filing.
About Florida Gaming
Florida Gaming Centers Inc. filed for Chapter 11 bankruptcy
(Bankr. S.D. Fla. Case No. 13-29597) in Miami on Aug. 19, 2013.
Florida Gaming Centers operates a casino and jai-alai frontons in
Miami. The Company disclosed debt of $138.3 million and assets of
$180 million in its petition.
Its parent, Florida Gaming Corp. (FGMG:US), and two other
affiliates also sought court protection.
Florida Gaming previously negotiated a sale of virtually all its
assets to casino operator Silvermark LLC for $115 million in cash
and $14 million in assumed liabilities. A provision in the
financing agreement required Florida Gaming to make an additional
payment to the lender -- ABC Funding -- if the assets are sold to
third party. Jefferies LLC was hired to determine that amount,
about $26.8 million, and valued the company at more than $180
million.
Luis Salazar, Esq., Esq., at Salazar Jackson in Miami, represents
Florida Gaming.
ABC Funding, LLC, as Administrative Agent for a consortium of
prepetition lenders, and the prepetition lenders are represented
by Dennis Twomey, Esq., and Andrew F. O'Neill, Esq., at SIDLEY
AUSTIN LLP, in Chicago, Illinois; and Drew M. Dillworth, Esq., and
Marissa D. Kelley, Esq., at STEARNS WEAVER MILLER WEISSLER
ALHADEFF & SITTERSON, P.A., in Miami, Florida. The Prepetition
Lenders are Summit Partners Subordinated Debt Fund IV-A, L.P.,
Summit Partners Subordinated Debt Fund IV-B, L.P., JPMorgan Chase
Bank, N.A., Locust Street Funding LLC, Canyon Value Realization
Fund, L.P., Canyon Value Realization Master Fund, L.P., Canyon
Distressed Opportunity Master Fund, L.P., and Canyon-GRF Master
Fund II, L.P.
FOX TROT: Amends List of 20 Largest Unsecured Creditors
-------------------------------------------------------
Fox Trot Corporation filed with the U.S. Bankruptcy Court for the
Eastern District of Kentucky amended list of creditors holding 20
largest unsecured claims, disclosing:
Name of creditor Nature of claim Amount of claim
---------------- --------------- ---------------
Poplar Ridge Enterprises Fees $374,868
Inc.
c/o Dell Jaggers
305 Old Coach Rd
Nicholasville, KY 40356
Golden Burley Tobacco Trade Debt $35,000
Sword Floyd & Moody PLLC Legal Expenses $21,480
American Express Other $14,555
David Beck Fees $11,837
Travelers Insurance Maintenance $6,674
I-64 Tractor & Farm Supply Trade Debt $899
Inc.
Home Lumber Company Trade Debt $512
Windstream Communications Utilities $336
Kentucky Power Company Utilities/Electricity $208
A-1 Portable Restrooms LLC Maintenance $188
Manufacturer's Supply Co. Trade Debt Account $78
of East KY
Statewide Alarms Other $67
Grand Genetics Trade Debt Account $65
Commonwealth of Kentucky
Division of Unemployment Taxes Unknown
Fayette County Public Taxes Unknown
Schools
Fayette County Sheriffs 600 Sulfur Well Unknown
Office Road, Lexington, KY
Internal Revenue Service Unknown
Lexington-Fayette Urban Taxes Unknown
County Govt.
The Debtor amended the list to remove and add unsecured creditors.
About Fox Trot Corporation
Fox Trot Corporation sought protection under Chapter 11 of the
Bankruptcy Code on Oct. 12, 2013 (Case No. 13-52471, Bankr. E.D.
Ky.). The case is assigned to Judge Gregory R. Schaaf. Adam R.
Kegley, Esq., represent the Debtor in its restructuring effort.
The Debtor estimated assets at $10 million to $50 million, and
debts at $1 million to $10 million.
FPC HOLDINGS: Moody's Cuts CFR & Sec. Term Loan Rating to B3
------------------------------------------------------------
Moody's Investors Service downgraded FPC Holdings, Inc.'s
("Fleetpride") Corporate Family Rating ("CFR") to B3 from B2 and
Probability of Default Rating to B3-PD from B2-PD. Concurrently,
Moody's downgraded the ratings on the 1st lien and 2nd lien senior
secured term loans to B3 from B1, and to Caa2 from Caa1,
respectively. The rating outlook was changed to negative from
stable.
The downgrade reflects the meaningful deterioration in
Fleetpride's operating performance following the November 2012
LBO. Same-branch sales declined in the mid-single-digit percent
range for the LTM period ended Q1 2013 primarily as a result of
inventory and pricing missteps. While the new management team's
focus on inventory, salesforce and pricing helped reverse the
negative trend (Q3 2013 same-branch sales increased in the high-
single-digit range), management initiatives have also
significantly expanded FleetPride's SG&A base to address prior
underinvestment and prepare the company for growth. As a result of
these factors, Moody's-adjusted EBITDA declined by 18% since
September 2012, while the company borrowed heavily on its revolver
to fund cash flow shortfalls. In combination with the LBO debt
load, this resulted in very high leverage of just above 10.0 times
as of September 2013 (compared to low 5.0 times the year before)
and negative free cash flow.
"We expect moderate earnings improvement in 2014 as Fleetpride
regains lost revenue", said Moody's analyst Raya Sokolyanska.
"However it may take time for the company to grow into its
increased expense base, given the mature nature of the industry.
We believe Fleetpride's adequate liquidity, including availability
under the upsized ABL and lack of maintenance covenants or near-
term maturities, will support the company during this period."
Rating actions:
Issuer: FPC Holdings, Inc.
Corporate Family Rating, downgraded to B3 from B2
Probability of Default Rating, downgraded to B3-PD from B2-PD
$425 million first lien term loan due 2019, downgraded to B3
(LGD3, 49%) from B1 (LGD3, 41%)
$200 million second lien term loan due 2020, downgraded to Caa2
(LGD5, 85%) from Caa1 (LGD5, 83%)
Outlook, changed to Negative from Stable
Ratings Rationale:
The B3 CFR reflects FleetPride's very weak credit metrics, the
cyclical nature of its end-markets and event risk associated with
the company's acquisitive growth strategy. Operating results
deteriorated significantly for several quarters following the
November 2012 LBO. Moody's expects the positive same-branch sales
performance in Q3 2013 to continue as the new management team's
efforts pay off, however credit metrics will remain weak in the
near term. Moody's anticipates 2014 leverage to remain above 9.0
times, coverage near 1.1 time, and breakeven to slightly positive
free cash flow. While the rating is weakly positioned in the B3
rating category, it is supported by the company's adequate
liquidity, including revolver availability and a covenant-lite
debt structure, as well national footprint and meaningful size in
its niche market.
The negative outlook reflects the risks associated with
implementing the company's growth strategy and achieving credit
metrics that are reflective of a solid B3 rating.
The ratings could be downgraded if the company's financial
performance remains weak or deteriorates further. Weaker than
expected liquidity, including additional revolver borrowings or
negative free cash flow, would also pressure the ratings.
Quantitatively, a downgrade could result if debt/EBITDA does not
trend below 8.5 times, or if interest coverage does not improve
above 1.0 time.
A ratings upgrade in the near-term is unlikely given the company's
elevated leverage and weak interest coverage ratios. The outlook
may be changed to stable if the company successfully executes its
growth strategy and increases profitability such that EBITA
margins expand to 7%. A stable outlook would also require stronger
liquidity, including positive free cash flow and increased
revolver availability.
FPC Holdings, Inc. ("FleetPride") is an independent U.S
distributor of aftermarket heavy-duty truck and trailer parts. The
company distributes brand name heavy-duty vehicle parts and select
private label brands through 247 locations across 45 states. In
addition, the company provides a limited range of re-manufactured
products, as well as truck and trailer repair services. Revenues
for the twelve months ended September 30, 2013 were approximately
$944 million. TPG Capital has controlled the company since the
November 2012 leveraged buyout from previous private equity
sponsor Investcorp.
FREESEAS INC: Shareholders Elect Two Directors
----------------------------------------------
At the annual meeting of FreeSeas Inc.'s shareholders held on
Nov. 14, 2013, the shareholders:
(i) elected Mr. Keith Bloomfield and Mr. Dimitrios
Panagiotopoulos as members of the Company's Board of
Directors to serve until the 2016 Annual Meeting of
Shareholders;
(ii) ratified the appointment of RBSM LLP as the Company's
independent registered public accounting firm as auditors
for the year ending Dec. 31, 2013; and
(iii) granted discretionary authority to the Company's board of
directors to (A) amend the Amended and Restated Articles of
Incorporation of the Company to effect one or more
consolidations of the issued and outstanding shares of
common stock, pursuant to which the shares of common stock
would be combined and reclassified into one share of common
stock at a ratio within the range from 1-for-2 up to 1-for-
5 and (B) determine whether to arrange for the disposition
of fractional interests by shareholder entitled thereto, to
pay in cash the fair value of fractions of a share of
common stock as of the time when those entitled to receive
those fractions are determined, or to entitle shareholder
to receive from the Company's transfer agent, in lieu of
any fractional share, the number of shares of common stock
rounded up to the next whole number, provided that, (X)
that the Company will not effect Reverse Stock Splits that,
in the aggregate, exceeds 1-for-10, and (Y) any Reverse
Stock Split is completed no later than the first
anniversary of the date of the Annual Meeting.
The Company also announced that Mr. Dimitris D. Papadopoulos was
appointed as chief financial officer of the Company in replacement
of Mr. Alexandros Mylonas who resigned.
Mr. Ion G. Varouxakis, chairman, president and CEO, commented: "I
would like to thank Alexandros Mylonas for his invaluable
contribution to the Company during challenging times and wish him
success in his new endeavors. Now is the time to welcome Dimitris
D. Papadopoulos, who is particularly well acquainted with the
Company, having served as its Chief Financial Officer in 2007
during the initial stage of growth the Company. We believe him to
be well suited to our team as we grow out of the present shipping
cycle."
Dimitris Papadopoulos started his career in Citigroup, New York,
European division, moving to Citigroup Athens as General Manager
of Corporate Finance. He then joined Archirodon Group Inc.
serving as financial and administration Vice President until 1991.
During the same period, he also served as Chairman and Chief
Executive Officer of the group's US arm, Delphinance Development
Corp. Since 1991 he served, among other positions, as Managing
Director of Dorian Bank, executive vice president at the Hellenic
Investment Bank and president of Waterfront Developments S.A. Mr.
Papadopoulos, as a Fullbright grantee, studied economics at Austin
College, Texas and extended his graduate studies at the University
of Delaware. In 1974, he received an executive business diploma
from Cornell University, Ithaca, N.Y.
Additional information is available for free at:
http://is.gd/Bd2h6T
About FreeSeas Inc.
Headquartered in Athens, Greece, FreeSeas Inc., formerly known as
Adventure Holdings S.A., was incorporated in the Marshall Islands
on April 23, 2004, for the purpose of being the ultimate holding
company of ship-owning companies. The management of FreeSeas'
vessels is performed by Free Bulkers S.A., a Marshall Islands
company that is controlled by Ion G. Varouxakis, the Company's
Chairman, President and CEO, and one of the Company's principal
shareholders.
The Company's fleet consists of six Handysize vessels and one
Handymax vessel that carry a variety of drybulk commodities,
including iron ore, grain and coal, which are referred to as
"major bulks," as well as bauxite, phosphate, fertilizers, steel
products, cement, sugar and rice, or "minor bulks." As of
Oct. 12, 2012, the aggregate dwt of the Company's operational
fleet is approximately 197,200 dwt and the average age of its
fleet is 15 years.
Freeseas disclosed a net loss of US$30.88 million in 2012, a net
loss of US$88.19 million in 2011, and a net loss of US$21.82
million in 2010. The Company's balance sheet at Dec. 31, 2012,
showed US$114.35 million in total assets, $106.55 million in
total liabilities and US$7.80 million in total shareholders'
equity.
RBSM LLP, in New York, issued a "going concern" qualification on
the consolidated financial statements for the year ended Dec. 31,
2012. The independent auditors noted that the Company has
incurred recurring operating losses and has a working capital
deficiency. In addition, the Company has failed to meet
scheduled payment obligations under its loan facilities and has
not complied with certain covenants included in its loan
agreements. It has also failed to make required payments to
Deutsche Bank Nederland as agreed to in its Sept. 7, 2012,
amended and restated facility agreement and received notices of
default from First Business Bank. Furthermore, the vast majority
of the Company's assets are considered to be highly illiquid and
if the Company were forced to liquidate, the amount realized by
the Company could be substantially lower that the carrying value
of these assets. These conditions, among others, raise
substantial doubt about the Company's ability to continue as a
going concern.
FX CONCEPTS: Seeks to Sell Assets to Ruby Commodities
-----------------------------------------------------
Tiffany Kary, writing for Bloomberg News, reported that FX
Concepts LLC, the currency hedge fund founded by John Taylor in
1981, asked a bankruptcy court for permission to sell its
trademark and trading models to Ruby Commodities Inc. for $7.48
million after an auction on Nov. 26.
According to the report, Ruby made the best offer for all the
company's assets after 39 rounds of bidding, International Foreign
Exchange Concepts Holdings Inc., the holding company for FX
Concepts, said a filing on Nov. 26 in U.S. Bankruptcy Court in
Manhattan. Before that, FX Concepts proposed to sell its trading
models individually and drew offers that valued them at as much as
$3.48 million, according to court papers.
The sale to Ruby shouldn't be subject to review, even though the
two companies have a "tenuous connection" because an FX Concepts
employee is a director of a fund managed by Ruby, FX Concepts
said, the report related.
"These selections were made in good faith, without collusion or
improper influence," FX Concepts said, the report cited. Aktis
Capital Management Ltd. made the second-highest total offer of
$7.38 million.
The sale includes trading models, hardware, historical data and
the FX Concepts trademark, the report further related. The
company's intraday trading model was valued at $1.3 million after
14 bids, the highest value of any asset, before aggregate bidding
began.
The case is In re FX Concepts, LLC (Bankr. S.D.N.Y. Case No. 13-
13446). The Chapter 11 Petition was filed on October 23, 2013.
The Debtor is represented by Henry P. Baer, Jr., Esq., at FINN
DIXON & HERLING, LLP.
GATEHOUSE MEDIA: Completes Restructuring, Exits Chapter 11
----------------------------------------------------------
GateHouse Media, Inc. and certain of its subsidiaries, comprising
one of the largest publishers of locally based print and online
media in the United States, on Nov. 26 disclosed that they have
emerged from prepackaged chapter 11 bankruptcy proceedings in the
United States Bankruptcy Court for the District of Delaware with a
substantially de-levered balance sheet.
Bill Rochelle, the bankruptcy columnist for Bloomberg News,
recounts that Gatehouse obtained a confirmation order on the plan
on Nov. 6. Fortress Investment Group LLC assembled a chain of
more than 430 daily, weekly and community newspapers in part
through the GateHouse plan. GateHouse has 78 daily and 235 weekly
newspapers, plus 343 associated websites.
In companion transactions, Newcastle Investment Corp. paid $87
million to buy Dow Jones Local Media Group Inc. from News Corp.
The acquired company has eight daily and 15 weekly newspapers in
seven states. Local Media will manage GateHouse.
GateHouse commenced chapter 11 cases in September, with the
unanimous support of its existing lenders to implement a
comprehensive restructuring of approximately $1.2 billion of debt
that was scheduled to come due in August 2014. Upon its emergence
from chapter 11, GateHouse is now owned by New Media Investment
Group Inc., and is under common ownership with Local Media Group,
Inc., a company with a strong community media presence and
performance that operates eight daily community newspapers and
thirteen weeklies. According to Michael Reed, Director and Chief
Executive Officer of GateHouse, the bankruptcy filing was a
strategic decision to facilitate this restructuring, and GateHouse
was able to continue operations while in chapter 11 without
disruption.
"GateHouse's plan effected a 'balance-sheet restructuring' and
allowed GateHouse to emerge from bankruptcy with much less debt on
its balance sheet and with its business operations completely
intact. Joining with Local Media Group is an important step in
growing the GateHouse business and will contribute to GateHouse's
future success as the pre-eminent source for locally focused
content, covering and serving our subscribers, advertisers and
customers through print, online and other digital products,
including mobile applications."
Pension, trade and all other unsecured creditors of GateHouse were
not impaired under the prepackaged plan, and the votes of such
unsecured creditors were not solicited. GateHouse's secured
lenders, whose debt was cancelled under the plan, received, at
their election, shares in New Media or a 40% cash distribution,
and the publicly traded shares of GateHouse have been cancelled,
with the holders of those shares receiving warrants for New Media
stock.
Houlihan Lokey Capital Inc. acted as financial advisor to
GateHouse, and Young Conaway Stargatt & Taylor, LLP acted as its
legal counsel.
About GateHouse Media, Inc.
GateHouse Media, Inc. -- http://www.gatehousemedia.com/--
headquartered in Fairport, New York, is one of the largest
publishers of locally based print and online media in the United
States as measured by its 97 daily publications. GateHouse Media
currently serves local audiences of more than 10 million per week
across 21 states through hundreds of community publications and
local Web sites.
GateHouse Media and its affiliates sought protection under Chapter
11 of the Bankruptcy Code (Case No. 13-12503, Bankr. D.Del.) on
Sept. 27, 2013. The case is assigned to Judge Mary F. Walrath.
The Debtors are represented by Patrick A. Jackson, Esq., and
Pauline K. Morgan, Esq., at Young Conaway Stargatt & Taylor, LLP,
in Wilmington, Delaware. Their financial advisor is Houlihan
Lokey Capital, Inc. Epiq Bankruptcy Solutions, LLC, serves as
their claims and noticing agent.
On Nov. 6, 2013 the U.S. Bankruptcy Court for the District of
Delaware held a hearing and entered an order confirming the
Debtor's prepackaged Chapter 11 plan.
* * *
The Company has experienced declining same stores revenue and
profitability over the past several years, has incurred
significant recurring losses from continuing operations and has a
net capital deficiency. Further, the restructuring support
agreement ("RSA") with Cortland Products Corp., as administrative
agent and certain of the lenders under the Company's 2007 Credit
Facility, including Newcastle Investment Corp. and its affiliates,
requires the Company to file a voluntary petition seeking to
reorganize under Chapter 11 of the Bankruptcy Code. The ability
of the Company, both during and after the Chapter 11 proceedings,
to continue as a going concern is contingent upon, among other
things; (i) the ability of the Company to generate cash from
operations and to maintain adequate cash on hand; (ii) the
resolution of the uncertainty as to the amount of claims that will
be allowed; (iii) the ability of the Company to confirm its
reorganization plan in the Chapter 11 proceedings and obtain any
financing which may be required to emerge from bankruptcy
protection; and (iv) the Company's ability to achieve
profitability.
GLOBAL SCRAP: Case Summary & 20 Largest Unsecured Creditors
-----------------------------------------------------------
Debtor: Global Scrap Management, Inc.
dba Altimet
dba GSM
4340 Batavia Road
Batavia, OH 45103
Case No.: 13-15384
Chapter 11 Petition Date: November 26, 2013
Court: United States Bankruptcy Court
Southern District of Ohio (Cincinnati)
Judge: Hon. Jeffery P. Hopkins
Debtor's Counsel: Eric W Goering, Esq.
220 West Third Street, Third Floor
Cincinnati, OH 45202
Tel: (513) 621-0912
Email: eric@goering-law.com
Total Assets: $1.96 million
Total Liabilities: $4.34 million
The petition was signed by Christopher Hamm, president.
A list of the Debtor's 20 largest unsecured creditors is available
for free at http://bankrupt.com/misc/ohsb13-15384.pdf
GLYECO INC: Incurs $1.5 Million Net Loss in Third Quarter
---------------------------------------------------------
GlyeCo, Inc., filed with the U.S. Securities and Exchange
Commission its quarterly report on Form 10-Q disclosing a net loss
of $1.46 million on $1.16 million of net sales for the three
months ended Sept. 30, 2013, as compared with a net loss of
$446,356 on $303,456 of net sales for the same period a year ago.
For the nine months ended Sept. 30, 2013, the Company incurred a
net loss of $2.14 million on $3.81 million of net sales as
compared with a net loss of $1.26 million on $895,390 of net sales
for the same period during the previous year.
The Company's balance sheet at Sept. 30, 2013, showed $15.55
million in total assets, $2.39 million in total liabilities, $1.17
million in redeemable series AA convertible preferred stock and
$11.98 million total stockholders' equity.
A copy of the Form 10-Q is available for free at:
http://is.gd/4ceAGn
About GlyEco, Inc.
Phoenix, Ariz.-based GlyEco, Inc., is a green chemistry company
formed to roll-out its proprietary and patent pending glycol
recycling technology that transforms waste glycols, a hazardous
material, into profitable green products.
Glyeco disclosed a net loss of $1.86 million on $1.26 million of
net sales for the year ended Dec. 31, 2012, as compared with a net
loss of $592,171 on $824,289 of net sales for the year ended
Dec. 31, 2011.
Jorgensen & Co., in Lehi, UT, issued a "going concern"
qualification on the consolidated financial statements for the
year ended Dec. 31, 2012. The independent auditors noted that the
Company has not yet achieved profitable operations and is
dependent on its ability to raise capital from stockholders or
other sources and other factors to sustain operations. These
factors, among other matters, raise substantial doubt that the
Company will be able to continue as a going concern.
GMX RESOURCES: Oneok to Continue Transporting Gas
-------------------------------------------------
Stephanie Gleason, writing for DBR Small Cap, reported that GMX
Resources Inc. has negotiated a deal with an Oneok Partners L.P.
subsidiary that will keep natural gas flowing through Oneok's
pipelines through December.
As previously reported by The Troubled Company Reporter, GMX
started a lawsuit on Nov. 22 against Oneok Inc., an independent
operating of natural gas gathering and processing facilities, with
6,000 miles of pipe serving 3 million producing acres, alleging
that the pipeline operator breached a contract to purchase and
transport natural gas. However, before that day was over, both
parties agreed to negotiate until the end of December. In the
interim, GMX agreed not to seek an injunction.
The complaint explains how Tulsa, Oklahoma-based Oneok made a
contract in March 2012 to purchase and transport gas from GMX's
wells. On Nov. 21, Oneok said it was converting the pipeline to
move gas at high pressure. The change would prevent Oneok from
taking GMX's gas.
Unable to move the gas and likewise unable to obtain permits
allowing the gas to be flared off, GMX said it would be compelled
to shut down production from the wells, in the process losing
$1.35 million a month from sales of oil and gas.
About GMX Resources
GMX Resources Inc. -- http://www.gmxresources.com/-- is an
independent natural gas production company headquartered in
Oklahoma City, Oklahoma. GMXR has 53 producing wells in Texas &
Louisiana, 24 proved developed non-producing reservoirs, 48 proved
undeveloped locations and several hundred other development
locations. GMXR has 9,000 net acres on the Sabine Uplift of East
Texas. GMXR has 7 producing wells in New Mexico.
GMX filed a Chapter 11 petition in its hometown (Bankr. W.D. Okla.
Case No. 13-11456) on April 1, 2013, so secured lenders can buy
the business in exchange for $324.3 million in first-lien notes.
GMX listed assets for $281.1 million and liabilities totaling
$458.5 million.
GMX missed a payment due in March 2013 on $51.5 million in second-
lien notes. Other principal liabilities include $48.3 million in
unsecured convertible senior notes.
The DIP financing provided by senior noteholders requires court
approval of a sale within 75 days following approval of sale
procedures. The lenders and principal senior noteholders include
Chatham Asset Management LLC, GSO Capital Partners, Omega Advisors
Inc. and Whitebox Advisors LLC.
David A. Zdunkewicz, Esq., at Andrews Kurth LLP, represents the
Debtors as counsel.
Looper Reed is substituted as counsel for the Official Committee
of Unsecured Creditors in place of Winston & Strawn LLP, effective
as of April 25, 2013. The Committee tapped Conway MacKenzie,
Inc., as financial advisor.
GORDON PROPERTIES: Dec. 3 Hearing on Bid to Borrow From Owners
--------------------------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of Virginia
will convene a hearing on Dec. 3, 2013, at 11:00 p.m., to consider
the request of Gordon Properties, LLC, and Condominium Services,
Inc. to incur subordinated secured debt.
The Debtors are seeking authorization to borrow money on a
subordinated secured basis. The Debtor related that their owners
and operators -- family members Bryan Sells, Elizabeth Sells
(Bryan's sister), Lindsay Wilson (Bryan's and Elizabeth's cousin),
and Julie Langdon (Lindsay's sister) -- have committed to lend up
to $500,000 on an ongoing basis as and when funds may be required,
to Gordon Properties for its ongoing cash needs, pursuant to the
terms of a Commercial Credit Line Promissory Note and Credit Line
Deed of Trust, similar in form and content to the Note and Deed of
Trust utilized in the prior borrowing motions.
The collateral intended to secure the loan will be one or more of
the unencumbered condominium units owned by Gordon Properties at
The Forty Six Hundred Condominium.
As with the previous borrowings, the owners have agreed to
subordinate their right to payment under the Note and Deed of
Trust to all allowed claims, that is, the owners agree to
subordinate their right to payment under the Notes and Deed of
Trust to the rights of all allowed claimants in the Gordon
Properties case. Accordingly, no creditor in Gordon Properties'
case will be adversely affected by the loan.
As reported in the Troubled Company Reporter, the owners may
decide amongst themselves, in their discretion, which of them will
provide the funding, when the funding will be provided, and how
much any particular owner will fund, provided, however, that the
total amount of the loan outstanding at any one time will not
exceed $500,000.
Early in the case, Gordon Properties exhausted its cash supporting
its business operations and litigation expenses. The Debtor
requires additional borrowing to meet its operating and litigation
expenses. The Debtor said that all or some of its owners are
prepared to lend money to help fund its ongoing cash needs.
The Debtor is owned and operated by family members Bryan Sells,
Elizabeth Sells, Lindsay Wilson, and Julie Langdon, each of whom
owns 25% of the membership interests.
About Gordon Properties, LLC
Alexandria, Va.-based Gordon Properties, LLC, owns 40 condominium
units in a high-rise apartment building with both residential and
commercial units and two commercial units adjacent to the high-
rise building. Gordon Properties' ownership of these condos
represents about a 20% interest in the Forty Six Hundred
Condominium project -- http://foa4600.org/-- in Alexandria.
Gordon Properties also owns one of the adjacent commercial units,
a restaurant. Gordon Properties sought Chapter 11 protection
(Bankr. E.D. Va. Case No. 09-18086) on Oct. 2, 2009, and is
represented by Donald F. King, Esq., at Odin, Feldman & Pittleman
PC in Fairfax, Va. Gordon Properties disclosed $11,149,458 in
assets and $1,546,344 in liabilities.
Condominium Services filed its chapter 11 petition (Bankr. E.D.
Va. 10-10581) on Jan. 26, 2010. It scheduled one creditor, the
condominium association, with a disputed claim of $436,802.00.
The association filed a proof of claim asserting a claim of
$453,533.12. A second proof of claim was filed by the Internal
Revenue Service for $1,955.45. According to its schedules, if
both claims are allowed, it has a net deficit of about $426,900.
CSI is wholly owned by Gordon Properties.
In February 2012, Judge Mayer denied the motion of the association
to substantively consolidate the chapter 11 bankruptcy cases of
Gordon Properties and Condominium Services, Inc., the condominium
management company.
Gordon Properties and CSI opposed the motion. The two cases were
previously administratively consolidated.
Stephen E. Leach has been appointed as examiner in the Debtor's
case. Leach Travell Britt, PC, represents the examiner as
counsel.
GRAND CENTREVILLE: Sohn, Kang and Debtor Oppose Dismissal Motion
-----------------------------------------------------------------
James Y. Sohn, the holder of at least a 40% ownership interest in
Grand Centreville, LLC; Raymond A. Yancey, the Chapter 11 Trustee
for the bankruptcy estate of Min S. Kang and Man S. Kang; and
Debtor Grand Centreville LLC oppose Secured Creditor's Motion to
Dismiss filed by lender Wells Fargo Bank, N.A., as Trustee for the
registered holders of JP Morgan Chase Commercial Mortgage
Securities Corp., Commercial Mortgage Pass-Through Certificates,
Series 2005-CIBC13.
Sohn says that Lender would suffer no harm if the Debtor were to
remain in bankruptcy until resolution of the Adversary Proceeding
filed by Wells Fargo and the Committee of Unsecured Creditors of
the estate of Min Sik Kang and Man Suk Kang (Bankr. E.D. Va. Case
No. 10-18839) seeking, among others, to avoid the transaction in
which Sohn acquired his ownership interest in the Debtor
(Adversary Proceeding No. 12-01496).
The Chapter 11 Trustee for the Kang Estate, says the Motion to
Dismiss lacks merit and should be denied. The Trustee believes
that the Debtor's Chapter 11 proceeding is necessary to protect
the interest of the Kang Estate in Grand Centreville, LLC.
According to the Trustee, Grand Centreville, LLC, the "crown
jewel" of the Kang Estate, has never defaulted on its loan
obligations, and its Shopping Center is nearly fully leased.
In its opposition to the Dismissal Motion, Debtor says the
bankruptcy case was not filed in bad faith. To the contrary,
according to the Debtor, it was filed to prevent an unjustified
and unnecessary impairment to value that could have been caused by
the Lender's actions. "Indeed, Grand Centreville has never
defaulted on its payment obligations, and its shopping center is
nearly fully leased. Grand Centreville's bankruptcy was the
result of the aggressive actions of the Lender, who remarkably has
suffered no loss and is not at any risk of loss. Rather, the
Lender made a strategic grab for a windfall, and declined even to
discuss a simple standstill agreement that could have avoided the
need for a bankruptcy filing. And now the Lender comes before
this Court asserting that the case was filed in bad faith?"
A copy of Sohn's opposition to the Dismissal Motion is available
at http://bankrupt.com/misc/grandcentreville.sohn.doc75.pdf
A copy of Kang's opposition to the Dismissal Motion is available
at http://bankrupt.com/misc/grandcentreville.kang.doc76.pdf
A copy of the Debtor's opposition to the Dismissal Motion is
available at http://bankrupt.com/misc/grandcentreville.doc77.pdf
As reported in the TCR on Nov. 6, 2013, secured creditor Wells
Fargo Bank, N.A., filed a motion to dismiss the Chapter 11 case of
the Debtor. According to Wells Fargo, the Debtor's bankruptcy
proceeding should be dismissed for cause, pursuant to 11 U.S.C.
Sec. 1112(b) for several reasons:
-- the Receiver (for both the Debtor and its sole managing
member, Grand Formation, LLC) did not have authority to
initiate the Bankruptcy Proceeding;
-- Even if the Receiver did have such authority, the
bankruptcy is both objectively futile and subjectively
filed in bad faith for the reasons:
(1) the Debtor is a financially healthy entity that has
no need to reorganize;
(2) the Debtor's only asset is the Shopping Center and
its associated property, which is the Secured
Creditor's Collateral;
(3) the Debtor has few unsecured creditors, whose
claims are small in comparison to those of the
Secured Creditor, the only secured creditor in
the case;
(4) the Shopping Center and its associated property
are subject to a foreclosure action as a result
of the Debtor's default on the Loan;
(5) the Debtor's financial condition is, in essence,
a two-party dispute between the Debtor and the
Secured Creditor which can be resolved in state
court proceedings;
(6) the timing of the Debtor's Bankruptcy Proceeding
indicates the Debtor's intent to delay or frustrate
the Secured Creditor's enforcement of its rights
under the Loan Documents; and
(7) the Debtor intended to use the automatic stay
provided by the Bankruptcy Code to prevent the
Secured Creditor from enforcing its rights under
the Loan Documents and as a litigation tactic
against Secured Creditor.
Each of the factors warranting dismissal of the Debtor's
Bankruptcy Proceeding, Wells Fargo contends, are well-established
by the Fourth Circuit Court of Appeals and courts applying the
Fourth Circuit's standard for dismissal. The improperly filed
Bankruptcy Proceeding is dissipating the Debtor's assets, harming
the interests of the Debtor and its creditors.
Wells Fargo said the Receiver's lack of authority to file for
bankruptcy relief is, in and of itself, an independent basis for
dismissal of the Bankruptcy Proceeding. Even if the Court were to
find the Receiver was authorized to file bankruptcy on behalf of
Grand Centreville, LLC, under the circumstances of this case, the
Secured Creditor said the filing is further evidence of bad faith.
Indeed, when looking at the totality of the circumstances, Secured
Creditor submits Debtor's Bankruptcy Proceeding was filed in bad
faith. The facts show that Debtor has no need to reorganize given
its solvency, financial health, and minimal debt. Rather than
being filed in order to reorganize Debtor's financial affairs, the
Bankruptcy Proceeding was initiated in an effort to re-
characterize a two-party dispute, and use the Bankruptcy Code and
the automatic stay to limit Secured Creditor's enforcement rights
and remedies under the Loan Documents. As a result, the
Bankruptcy Proceeding is objectively futile because it simply
cannot be said that the proceeding has some relation to the
statutory objective of resuscitating a financially troubled
debtor.
Furthermore, the Bankruptcy Proceeding was filed with subjective
bad faith because the Debtor did not intend to use Chapter 11 with
the honest intent of effectuating a reorganization; rather, it
intended to use Chapter 11 for an improper purpose such as seeking
to cause hardship or to delay Wells Fargo through the use of the
automatic stay. Accordingly, the bankruptcy should be dismissed.
As long as the Bankruptcy Proceeding continues, the improperly
filed Bankruptcy Proceeding is harming the interests of the Debtor
and its creditors because the Debtor is incurring substantial
unnecessary fees on account of the Bankruptcy Proceeding,
dissipating the assets.
About Grand Centreville
Grand Centreville, LLC, filed a Chapter 11 petition (Bankr. E.D.
Va. Case No. 13-13590) on Aug. 2, 2013. The petition was signed
by Michael L. Schuett, principal of Black Creek Consulting Ltd.,
the receiver. Judge Robert G. Mayer presides over the case.
Paula S. Beran, Esq., and Lynn L. Tavenner, Esq., at Tavenner &
Beran, PLC, in Richmond, Va., represents the Debtor as counsel.
In its schedules, the Debtor disclosed $40,550,045.74 in assets
and $26,247,602.00 in liabilities as of the petition date.
HALLWOOD GROUP: Incurs $633,000 Net Loss in Third Quarter
---------------------------------------------------------
The Hallwood Group Incorporated reported net income of $633,000 on
$30.27 million of revenue for the three months ended Sept. 30,
2013, as compared with a net loss of $1.06 million on $27.14
million of revenue for the same period during the prior year.
For the nine months ended Sept. 30, 2013, the Company reported a
net loss of $1.06 million on $94.04 million of revenue as compared
with a net loss of $11.83 million on $100.20 million of revenue
for the same period a year ago.
A copy of the press release is available for free at:
http://is.gd/ALh4xI
Files Schedule 13E-3
The Hallwood Group Incorporated, Hallwood Financial Limited
("Parent"), HFL Merger Corporation ("Merger Sub"), and Anthony J.
Gumbiner, chairman and chief executive officer of the Company and
a director of Parent filed a Rule 13E-3 Transaction Statement with
the U.S. Securities and Exchange Commission.
This Transaction Statement relates to the Agreement and Plan of
Merger, dated as of June 4, 2013, by and among the Company,
Parent, and Merger Sub, as amended by that certain Amendment to
Agreement and Plan of Merger, dated as of July 11, 2013. If the
conditions to the closing of the Merger Agreement are either
satisfied or, to the extent permitted, waived, Merger Sub will be
merged with and into the Company at the effective time of the
Merger, at which time the separate corporate existence of Merger
Sub will cease, and the Company will continue as the surviving
company in the Merger and a wholly owned subsidiary of Parent. At
the Effective Time, each share of Common Stock outstanding
immediately prior to the Effective Time (other than shares held by
Parent, Merger Sub, the Company or any wholly owned subsidiary of
the Company or held in the Company's treasury and shares
outstanding immediately prior to the Effective Time held by any
stockholder who has neither voted in favor of the Merger nor
consented thereto in writing and who has demanded properly in
writing appraisal for those shares or otherwise properly perfected
and not withdrawn or lost his or her rights of appraisal under the
General Corporation Law of the State of Delaware will be converted
into the right to receive $10.00 in cash, without interest, and
all those shares will be automatically cancelled and will cease to
exist, and the holders of those shares will cease to have any
rights with respect thereto other than the right to receive the
Merger Consideration. Following the Closing, Common Stock will no
longer be publicly traded, and current stockholders will cease to
have any ownership interest in the Company.
The board of directors of the Company formed a special committee
consisting solely of independent and disinterested directors of
the Company to evaluate the Merger and other alternatives
available to the Company. The Special Committee unanimously
determined that the transactions contemplated by the Merger
Agreement, including the Merger, are advisable and in the best
interests of the Company and its stockholders, and unanimously
recommended that the Board approve and declare advisable the
Merger Agreement and the transactions contemplated thereby,
including the Merger, and that the Company's stockholders vote for
the adoption of the Merger Agreement.
A copy of the Schedule 13E-3 is available for free at:
http://is.gd/p8Dzom
About Hallwood Group
Dallas, Texas-based The Hallwood Group Incorporated (NYSE MKT:
HWG) operates as a holding company. The Company operates its
principal business in the textile products industry through its
wholly owned subsidiary, Brookwood Companies Incorporated.
Brookwood is an integrated textile firm that develops and produces
innovative fabrics and related products through specialized
finishing, treating and coating processes.
Prior to October 2009, The Hallwood Group Incorporated held an
investment in Hallwood Energy, L.P. ("Hallwood Energy"). Hallwood
Energy was a privately held independent oil and gas limited
partnership and operated as an upstream energy company engaged in
the acquisition, development, exploration, production, and sale of
hydrocarbons, with a primary focus on natural gas assets. The
Company accounted for the investment in Hallwood Energy using the
equity method of accounting. Hallwood Energy filed for bankruptcy
in March 2009. In connection with the confirmation of Hallwood
Energy's bankruptcy in October 2009, the Company's ownership
interest in Hallwood Energy was extinguished and the Company no
longer accounts for the investment in Hallwood Energy using the
equity method of accounting.
Hallwood Group incurred a net loss of $17.94 million in 2012, as
compared with a net loss of $6.33 million in 2011. The Company's
balance sheet at March 31, 2013, showed $70.82 million in total
assets, $30.97 million in total liabilities and $39.85 million in
total stockholders' equity.
Deloitte & Touche LLP, in Dallas, Texas, issued a "going concern"
qualification on the consolidated financial statements for the
year ended Dec. 31, 2012. The independent auditors noted that
the Company is dependent on its subsidiary to receive the cash
necessary to fund its ongoing operations and obligations. It is
uncertain whether the subsidiary will be able to make payment of
dividends to its fund ongoing operations. These conditions raise
substantial doubt about its ability to continue as a going
concern.
HAWAII OUTDOOR: KDC Files Proposed Plan and Disclosures
-------------------------------------------------------
Ken Direction Corporation, the parent company of Hawaii Outdoor
Tours, Inc., filed with the U.S. Bankruptcy Court for the District
of Hawaii on Nov. 5, 2013, a disclosure statement explaining its
proposed plan of reorganization for the Debtor, dated Nov. 4,
2013.
According to the Disclosure Statement, the source of about
$14,000,000 in new funds will be the proceeds from the sale of
real estate owned by HPAC, LLC, an affiliated company of the
Proponent, to Shalom Amar Revocable Trust 2000 by way of a 1031
exchange.
The Plan will be implemented through the following means: The
proceeds from HPAC, LLC's sale will be either loaned to or
invested in the Debtor and used to fund the payments to both
Secured and Unsecured Creditors provided for under the Plan on the
Effective Date. The CEO of Debtor, Kenneth Fujiyama, will provide
oversight and assistance in the operation of the Debtor's business
and day-to-day management decisions. The Debtor will work to
maintain and increase room sales, bar and restaurant revenue, golf
course revenue, convention and banquet revenue, as well as to
refinance the Naniloa Hotel Property.
Kenneth Fujiyama will act as the Disbursing Agent for the purpose
of making all distributions provided for under the Plan.
In his capacity as Disbursing Agent, Kenneth Fujiyama will be
responsible for all actions necessary to maintain and maximize the
Debtor's business affairs. The Disbursing Agent will be
responsible for the operation of the Debtor's business,
preservation of assets, and pursuit of any claims held by the
Debtor's bankruptcy estate, including any Avoidance Actions and
Post-Confirmation Estate Claims, and for the Distribution of the
Debtor's Cash or any recoveries to Creditors pursuant to the
provisions of the Bankruptcy Code and the Plan. The duties of
the Disbursing Agent will also include preparing and filing the
post-confirmation status reports with the Office of the United
States Trustee and paying all post-confirmation quarterly fees of
the Office of the United States Trustee until the bankruptcy case
is dismissed or a final decree has been entered, whichever occurs
first.
A copy of the Disclosure Statement is available at:
http://bankrupt.com/misc/hawaiioutdoor.doc521.pdf
As reported in the TCR on Nov. 13, Ken Direction Corporation, the
parent company of Hawaii Outdoor Tours, Inc., filed with the U.S.
Bankruptcy Court for the District of Hawaii on Nov. 4, 2013, a
proposed plan of reorganization for the Debtor. The Plan
contemplates the full payment to both secured and unsecured
creditors of the Debtor on the Plan's effective date.
KDC will retain its shares of stock in the Reorganized Debtor.
A copy of KDC's Plan for the Debtor is available at:
http://bankrupt.com/misc/hawaiioutdoor.doc515.pdf
About Hawaii Outdoor Tours
Hawaii Outdoor Tours, Inc., operator of the Naniloa Volcanoes
Resort in Hilo, Hawaii, filed a Chapter 11 petition (Bankr. D.
Haw. Case No. 12-02279) in Honolulu on Nov. 20, 2012. Naniloa
Volcanoes is a 382-room hotel with a nine-hole golf course. The
64-acre property is subject to a 65-year lease, commencing Feb. 1,
2006, and provides for a total ground rent for the first 10 years
of $500,000 annually. The Debtor used a $10 million loan from
First Regional Bank and $10 million of its own cash to invest in
the property.
First-Citizens Bank & Trust Company, which acquired the First
Regional note from the Federal Deposit Insurance Corp., commenced
foreclosure proceedings in August. First-Citizens Bank asserts a
claim of $9.95 million. The Debtor believes that the value of the
hotel property exceeds the amount of the First-Citizens Bank note.
Just the bricks and mortar alone was valued in excess of
$35 million by First Regional's appraiser and the insurance
company.
Bankruptcy Judge Robert J. Faris oversees the case. Ramon J.
Ferrer, Esq., represents the Debtor as counsel.
In its schedules, the Debtor disclosed $52,492,891 in assets and
$11,756,697 in liabilities. The petition was signed by CEO
Kenneth Fujiyama.
Ted N. Petitt, Esq., represents secured creditor First-Citizens
Bank as counsel. Cynthia M. Johiro, Esq., represents the State of
Hawaii Department of Taxation as counsel.
Timothy J. Hogan, Esq., represents David C. Farmer, the Chapter 11
Trustee, as counsel.
Christopher J. Muzzi, Esq., at Tsugawa Biehl Lau & Muzzi, LLLC,
represents the Official Committee of Unsecured Creditors as
counsel.
HCSB FINANCIAL: Delays Form 10-Q for Third Quarter
--------------------------------------------------
HCSB Financial Corporation was not able to timely file its
quarterly report on Form 10-Q for the quarter ended Sept. 30,
2013, because the audit of Company's consolidated financial
statements for the year ended Dec. 31, 2012, has not been
finalized and, as a result, the Company cannot file its Form 10-Q
for the period ended Sept. 30, 2013, by Nov. 14, 2013, without
unreasonable effort and expense.
At this time, the Company currently anticipates reporting a net
loss ranging from $.2 million to $.3 million for the period ended
Sept. 30, 2013. Based on the Company's analysis of its allowance
for loan losses, the Company does not anticipate taking any loan
loss provision for the quarter ended Sept. 30, 2013. However,
based on the Company's continued analysis, the Company's actual
results for the period ended Sept. 30, 2013, may differ from its
current estimates. As a result, the Company is still finalizing
its unaudited consolidated financial statements and related
disclosures for the quarter ended Sept. 30, 2013.
As of February 2011, the Federal Reserve Bank of Richmond, the
Company's primary federal regulator, has required the Company to
defer dividend payments on its $12,895,000 of shares of Series T
Preferred Stock issued to the U.S. Treasury in March 2009 pursuant
to the U.S. Treasury's Capital Purchase Program and interest
payments on its $6,000,000 of trust preferred securities issued in
December 2004. In addition, since October 2011, the Federal
Reserve Bank of Richmond has prohibited the Company from paying
interest due on its $12,062,011 of subordinated promissory notes
that were issued in a private placement in the first half of 2010.
As a result, as of Sept. 30, 2013, the Company has deferred
$1,773,063 in dividend payments due on the Series T Preferred
Stock, $491,567 in interest payments due on the trust preferred
securities, and $2,159,265 in interest payments due on the
subordinated promissory notes.
About HCSB Financial
Loris, South Carolina-based HCSB Financial Corporation was
incorporated on June 10, 1999, to become a holding company for
Horry County State Bank. The Bank is a state chartered bank which
commenced operations on Jan. 4, 1988. From its 13 branch
locations, the Bank offers a full range of deposit services,
including checking accounts, savings accounts, certificates of
deposit, money market accounts, and IRAs, as well as a broad range
of non-deposit investment services. During the third quarter of
2011, the Bank closed its Covenant Towers branch located at Myrtle
Beach. All deposits were transferred to the Bank's Myrtle Beach
branch and the Bank does not expect any disruption of service in
that market for its customers.
HCSB reported a net loss of $29.01 million in 2011, compared with
a net loss of $17.27 million in 2010.
The Company's balance sheet at Sept. 30, 2012, showed $512.65
million in total assets, $520.03 million in total liabilities and
a $7.38 million total shareholders' deficit.
HOYT TRANSPORATION: Dec. 19 Hearing on Exclusivity Extensions
-------------------------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of New York
will convene a hearing on Dec. 19, 2013, at 3:30 p.m., to consider
the Hoyt Transportation Corp.'s request for exclusivity
extensions. Objections, if any, are due Dec. 12, at 5:00 p.m.
The Debtor requested that the Court extend its exclusive periods
to file a plan of reorganization until Feb. 12, 2014; and solicit
acceptances for that plan until April 14, 2014.
About Hoyt Transportation
Brooklyn, New York-based Hoyt Transportation Corp. filed a
Chapter 11 petition (Bankr. E.D.N.Y. Case No. 13-44299) on
July 13, 2013, estimating at least $10 million in assets and
liabilities. The Debtor is represented by Kevin J. Nash, Esq., at
Goldberg Weprin Finkel Goldstein LLP.
Brooklyn-based Hoyt specializes in transportation for children
with disabilities. Hoyt operated 350 buses until the contract
with the Department of Education expired.
IMPLANT SCIENCES: Intends to Refile Sept. 30 Quarter Form 10-Q
--------------------------------------------------------------
Implant Sciences Corporation filed with the U.S. Securities and
Exchange Commission a Notification of Late Filing on Form 12b-25
with respect to its quarterly report on Form 10-Q for the quarter
ended Sept. 30, 2013.
The Company has completed its review and preparation of the
financial statements and footnotes to be contained in its
Quarterly Report on Form 10-Q for the period ended Sept. 30, 2013,
which has been reviewed by the Company's independent registered
public accounting firm, and filed, exclusive of the Interactive
Data Files formatted in XBRL, with the Securities and Exchange
Commission on Nov. 14, 2013. Due to technical issues, the Company
was unable, without unreasonable effort and expense, to prepare
its filing so as to include the Interactive Data Files formatted
in XBRL with tagging of the notes to the condensed consolidated
financial statements as required by Rule 405 of Regulation S-T.
The Company expects to file its Form 10-Q with the Interactive
Data Files formatted in XBRL within the prescribed period.
About Implant Sciences
Implant Sciences Corporation (OBB: IMSC.OB) --
http://www.implantsciences.com/-- develops, manufactures and
sells sensors and systems for the security, safety and defense
(SS&D) industries.
Marcum LLP, in Boston, Massachusetts, issued a "going concern"
qualification on the consolidated financial statements for the
year ended June 30, 2012. The independent auditors noted that the
Company has had recurring net losses and continues to experience
negative cash flows from operations. As of Sept. 25, 2012, the
Company's principal obligation to its primary lender was
$33,429,000 with accrued interest of $3,146,000. The Company is
required to repay all borrowings and accrued interest to this
lender on March 31, 2013. These conditions raise substantial
doubt about its ability to continue as a going concern.
For the year ended June 30, 2013, the Company incurred a net loss
of $27.35 million on $12.01 million of revenues as compared with a
net loss of $14.63 million on $3.40 million of revenues during the
prior year. The Company's balance sheet at June 30, 2013, showed
$5.09 million in total assets, $49.64 million in total liabilities
and a $44.54 million total stockholders' deficit.
The Company's balance sheet at Sept. 30, 2013, showed
$4.45 million in total assets, $53.32 million in total
liabilities, and stockholders' deficit of $48.88 million.
Bankruptcy Warning
"Despite our current sales, expense and cash flow projections and
$12,763,000 in cash available from our line of credit with DMRJ at
March 31, 2013, we will require additional capital in the third
quarter of fiscal 2014 to fund operations and continue the
development, commercialization and marketing of our products. Our
failure to achieve our projections and/or obtain sufficient
additional capital on acceptable terms would have a material
adverse effect on our liquidity and operations and could require
us to file for protection under bankruptcy laws," the Company said
in its quarterly report for the period ended March 31, 2013.
KAHN FAMILY: Has Until Dec. 20 to File Reorganization Plan
----------------------------------------------------------
The U.S. Bankruptcy Court for the District of South Carolina has
extended Kahn Family, LLC's exclusive right to file a
reorganization plan and Disclosure Statement explaining that Plan
until Dec. 20, 2013.
The Debtor's deadline was originally Oct. 21 or 180 days after the
Petition Date. Due to the complexity of the case, the Debtor
requested for additional 60 days.
Kahn Family, LLC, and Kahn Properties South, LLC, filed bare-bones
Chapter 11 petitions (Bankr. D. S.C. Case Nos. 13-02354 and
13-02355) on April 22, 2013. Kahn Family disclosed $50 million to
$100 million in assets and liabilities. R. Geoffrey Levy, Esq.,
at Levy Law Firm, LLC, serves as the Debtors' counsel. David G.
Wolff, Esq., at Barnes, Alford, Stork & Johnson, LLP, is the
Debtor's special counsel. Bill Quattlebaum, CPA of Elliott Davis,
LLC, serves as its accountant.
KSL MEDIA: Says Committee Can't Hire Pachulski as Counsel
---------------------------------------------------------
KSL Media, Inc., et al., filed their initial opposition to the
request of the Official Committee of Unsecured Creditors to retain
Pachulski Stang Ziehl & Jones LLP as its counsel.
According to the Debtors' counsel, Roger M. Landau, Esq., at
Landau Gottfried & Gerber LLP, facts have come to the Debtor's
attention demonstrating that Pachulski has an adverse to the
interests of its purported client and to the Debtor's bankruptcy
estates, rendering Pachulski ineligible for employment.
Peter C. Anderson, U.S. Trustee, by and through, Jennifer L.
Braun, Esq., has withdrawn his limited objection to the
Committee's application to retain Pachulski based on the firm's
agreement to commence employment as of Oct. 11, and include a
provision regarding allocation of its fees among the three Debtors
in the order approving the firm's employment.
On Oct. 31, 2013, the U.S. Trustee objected to the Committee's
application to retain Pachulski effective Sept. 11. U.S. Trustee
stated that the application requested that the firm's employment
commence the day before the Committee retained Pachulski. The
U.S. Trustee requested justification and legal authority for the
request.
In addition, the U.S. Trustee requested that the order employing
Pachulski include a provision that Pachulski is required to
allocate its time for services between the three Debtors in the
cases that are jointly administered only at this time, not
substantively consolidated. The U.S. Trustee has made this same
request of the Debtors' professionals, who are working with the
U.S. Trustee to amend the existing orders authorizing their
employment to include such a provision.
About KSL Media Inc.
One of the largest independent media-buying firms in the United
States, KSL Media Inc., and two affiliates filed for Chapter 11
protection on Sept. 11, 2013, in Central California, driven to
bankruptcy after losing a major account and claiming it was the
victim of an alleged multimillion-dollar embezzlement scheme it
blamed on its former controller.
According to the bankruptcy declaration from current controller
Janet Miller-Allen, the company's former controller Geoffrey
Charness is the subject of an FBI investigation connected to an
alleged scheme to dump $140 million from the company's accounts.
The lead case is Case No. 13-15929 (Bankr. C.D. Calif.) before
Judge Alan M. Ahart.
The Debtors are represented by Rodger M. Landau, Esq., and Monica
Rieder, Esq., at Landau Gottfried & Berger, LLP, in Los Angeles,
California. Grobstein Teeple Financial Advisory Services, LLP,
serves as their financial advisors. The Debtors' accountant is
Grobstein Teeple Financial Advisory Services LLP. The Debtors
disclosed $34,652,932 in assets and $64,946,225 in liabilities as
of the Chapter 11 filing.
The Debtor's Plan dated Oct. 2, 2013, contemplates that, soon as
the Debtors determine that the process of reconciliation is
substantially completed, the Debtors will file a notice thereof
with the Bankruptcy Court and the Debtors' assets and liabilities
will be transferred to the Liquidating Trust established under the
Plan and an initial distribution will be made on account of
allowed unsecured claims of 67 percent of the available cash. The
Plan does not contemplate the release of any third parties.
The Official Committee of Unsecured Creditors tapped to retain
Pachulski Stang Ziehl & Jones LLP as counsel.
KSL MEDIA: Terms of Landau Gottfried Hiring Modified
----------------------------------------------------
The U.S. Bankruptcy Court for the Central District of California
approved a stipulation between Landau Gottfried & Berger LLP, and
the Office of the U.S. Trustee modifying the previously entered
order approving the firm's employment as KSL Media Inc., et al.'s
general bankruptcy counsel.
The stipulation provides that:
1. The LGB employment order will be deemed modified to
provide that: "In any fee application by LGB, LGB will
appropriately allocate its fees among the three Debtors
(unless the Debtors' estates will have been substantially
consolidated prior to the filing of the fee application.
2. No later than five days after the entry of an order
approving the stipulation, LGB will file a supplemental
disclosure, which will (a) state whether there was any
agreement between the three Debtors regarding the funding of
LGB's retainer, and, if so, describe that agreement; (b) set
forth dates and amounts of all retainer payments made by the
Debtors to LGB; and (c) state the amount of fees incurred by
LGB prior to the Petition Date in connection with bankruptcy
preparation.
About KSL Media Inc.
One of the largest independent media-buying firms in the United
States, KSL Media Inc., and two affiliates filed for Chapter 11
protection on Sept. 11, 2013, in Central California, driven to
bankruptcy after losing a major account and claiming it was the
victim of an alleged multimillion-dollar embezzlement scheme it
blamed on its former controller.
According to the bankruptcy declaration from current controller
Janet Miller-Allen, the company's former controller Geoffrey
Charness is the subject of an FBI investigation connected to an
alleged scheme to dump $140 million from the company's accounts.
The lead case is Case No. 13-15929 (Bankr. C.D. Calif.) before
Judge Alan M. Ahart.
The Debtors are represented by Rodger M. Landau, Esq., and Monica
Rieder, Esq., at Landau Gottfried & Berger, LLP, in Los Angeles,
California. Grobstein Teeple Financial Advisory Services, LLP,
serves as their financial advisors. The Debtors' accountant is
Grobstein Teeple Financial Advisory Services LLP. The Debtors
disclosed $34,652,932 in assets and $64,946,225 in liabilities as
of the Chapter 11 filing.
The Debtor's Plan dated Oct. 2, 2013, contemplates that, soon as
the Debtors determine that the process of reconciliation is
substantially completed, the Debtors will file a notice thereof
with the Bankruptcy Court and the Debtors' assets and liabilities
will be transferred to the Liquidating Trust established under the
Plan and an initial distribution will be made on account of
allowed unsecured claims of 67 percent of the available cash. The
Plan does not contemplate the release of any third parties.
The Official Committee of Unsecured Creditors tapped to retain
Pachulski Stang Ziehl & Jones LLP as counsel.
LAGUNA BRISAS: CBRE Approved as Real Estate Broker
--------------------------------------------------
The U.S. Bankruptcy Court for the Central District of California
entered an order granting Laguna Brisas, LLC's amended application
to employ real estate professionals Rod Apodaca and Bob Kaplan of
CBRE, Inc.
The Court approved the employment of CBRE, except that it does not
approve a break-up fee in favor of CBRE, Inc. in any amount.
As reported in the Troubled Company Reporter on Oct. 1, 2013,
Messrs. Apodaca and Kaplan of CBRE will assist in the sale of real
property of the estate -- 1600 South Coast Highway, Laguna Beach,
California. CBRE sought compensation in the form of a real estate
commission, under the terms of a purchase agreement regarding the
property, an agreement that provides for a commission of 2% of the
purchase price to be paid to the professional upon close of escrow
for the transaction. The Debtor reserves the right to refinance
or restructure the debt secured by the hotel, in which case CBRE
requires a $50,000 breakup fee.
About Laguna Brisas
Laguna Beach, California-based Laguna Brisas LLC, doing business
as Best Western Laguna Brisas Spa Hotel, is owned by A&J Mutual,
LLC, which is owned and operated by Dae In "Andy" Kim and his wife
Jane. The Company owns a Best Western Plus Hotel and Spa in
Laguna Beach, California.
The Company filed for Chapter 11 protection (Bankr. C.D. Cal.
Case No. 12-12599) on Feb. 29, 2012. Bankruptcy Judge Mark S.
Wallace presides over the case.
The Debtor filed the Chapter 11 petition to stop foreclosure sale
of the first priority trust deed holder, Wells Fargo Bank. The
hotel has been in possession of and operated by a receiver, Bryon
Chapman of Rim Hospitality, since Oct. 3, 2011.
Johnny Kim, Esq. -- no relation to the Debtor's insider, "Andy"
Kim -- represents the Debtor as special counsel.
The Debtor disclosed $15,097,815 in assets and $13,982,664 in
liabilities. The petition was signed by Dae In "Andy" Kim,
managing member.
The Debtor has filed a Plan to be funded from income the Debtor
receives from the operation of the Hotel. The management of the
Debtor will continue to be Andy Kim, as it was prior to the
appointment of the Receiver. By the effective date of the Plan,
the Receiver will turn over the Debtor's assets to the Debtor.
The Debtor, through the management company, Matrix Hospital Group
LLC, will act as the disbursing agent for the purpose of making
the distributions provided for under the Plan.
Creditor Wells Fargo Bank, N.A., is represented by Hamid R.
Rafatjoo, Esq., at Venable LLP, as counsel.
LAGUNA BRISAS: Receiver Can Access Cash Collateral Until Jan. 31
----------------------------------------------------------------
The Bankruptcy Court entered an order approving the ninth
stipulation (i) authorizing the continued interim use of cash
collateral by Byron Chapman, the duly-appointed state court
receiver, until Jan. 31, 2014; and (ii) approving the receiver's
budget related to implementation of the Best Western Property
Improvement plan.
The stipulation was entered among (i) the receiver; (ii) senior
secured creditor Wells Fargo Bank, N.A., as trustee for the
registered holders of Banc of America Commercial Mortgage Inc.,
Commercial Mortgage Pass-Through Certificates, Series 2006-3, by
and through CWCapital Asset Management LLC, solely in its capacity
as Special Servicer; (iii) Kay Nam Kim and Mehrdad Elie.
The monthly adequate protection payments to be made to Kim in the
amount of $5,667 per month, and Elie in the amount of $1,066 per
month, retroactive to May 1, 2013, will not be made unless and
until the Bankruptcy Court enters a final order approving the
Settlement Agreement and Mutual Releases entered into by and
between the Debtor, Wells Fargo, Kim and Elie, and the retroactive
and past due monthly payments, regardless of when budgeted, will
be paid soon as practical, after the entry of the final order.
A copy of the stipulation is available for free at:
http://bankrupt.com/misc/LAGUNABRISAS_cashcoll_stipulation.pdf
About Laguna Brisas
Laguna Beach, California-based Laguna Brisas LLC, doing business
as Best Western Laguna Brisas Spa Hotel, is owned by A&J Mutual,
LLC, which is owned and operated by Dae In "Andy" Kim and his wife
Jane. The Company owns a Best Western Plus Hotel and Spa in
Laguna Beach, California.
The Company filed for Chapter 11 protection (Bankr. C.D. Cal.
Case No. 12-12599) on Feb. 29, 2012. Bankruptcy Judge Mark S.
Wallace presides over the case.
The Debtor filed the Chapter 11 petition to stop foreclosure sale
of the first priority trust deed holder, Wells Fargo Bank. The
hotel has been in possession of and operated by a receiver, Bryon
Chapman of Rim Hospitality, since Oct. 3, 2011.
Johnny Kim, Esq. -- no relation to the Debtor's insider, "Andy"
Kim -- represents the Debtor as special counsel.
The Debtor disclosed $15,097,815 in assets and $13,982,664 in
liabilities. The petition was signed by Dae In "Andy" Kim,
managing member.
The Debtor has filed a Plan to be funded from income the Debtor
receives from the operation of the Hotel. The management of the
Debtor will continue to be Andy Kim, as it was prior to the
appointment of the Receiver. By the effective date of the Plan,
the Receiver will turn over the Debtor's assets to the Debtor.
The Debtor, through the management company, Matrix Hospital Group
LLC, will act as the disbursing agent for the purpose of making
the distributions provided for under the Plan.
Creditor Wells Fargo Bank, N.A., is represented by Hamid R.
Rafatjoo, Esq., at Venable LLP, as counsel.
LB HOLDINGS: Case Summary & 9 Largest Unsecured Creditors
---------------------------------------------------------
Debtor: LB Holdings, LLC
1580 Lakewood Drive
Lexington, KY 40502
Case No.: 13-52838
Chapter 11 Petition Date: November 22, 2013
Court: United States Bankruptcy Court
Eastern District of Kentucky (Lexington)
Debtor's Counsel: Dean A. Langdon, Esq.
DELCOTTO LAW GROUP PLLC
200 N Upper St
Lexington, KY 40507
Tel: (859) 231-5800
Email: dlangdon@dlgfirm.com
Total Assets: $2.17 million
Total Liabilities: $1.52 million
The petition was signed by Jason Greer, member.
A list of the Debtor's nine largest unsecured creditors is
available for free at http://bankrupt.com/misc/kyeb13-52838.pdf
LEHMAN BROTHERS: Wants Saphir Finance's Claims Disallowed
---------------------------------------------------------
Lehman Brothers Holdings Inc. asked the U.S. Bankruptcy Court in
Manhattan to disallow the claims of Saphir Finance Public Limited
Co., saying the claims were filed without supporting documents.
The claims are listed at http://is.gd/flzBSk
The company also dropped its objection to Claim Nos. 32732 and
32733 filed by IKB International SA, and Claim Nos. 26679 and
26701 filed by Zwinger Opco 6 B.V.
Separately, The Guam Economic Development Authority and several
other Lehman creditors filed objections to block court approval
of the proposed treatment of their claims against the company.
The agency questioned Lehman's proposal to reduce its claims by
as much as $842,000 without any basis, according to court papers.
The claims stemmed from a reserve fund agreement entered into by
the agency and Lehman's special financing unit, which allegedly
breached the agreement when it failed to deliver securities in
December 2008.
About Lehman Brothers
Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was
the fourth largest investment bank in the United States. For
more than 150 years, Lehman Brothers has been a leader in the
global financial markets by serving the financial needs of
corporations, governmental units, institutional clients and
individuals worldwide.
Lehman Brothers filed for Chapter 11 bankruptcy (Bankr. S.D.N.Y.
Case No. 08-13555) on Sept. 15, 2008. Lehman's bankruptcy
petition disclosed US$639 billion in assets and US$613 billion in
debts, effectively making the firm's bankruptcy filing the
largest in U.S. history. Several other affiliates followed
thereafter.
Affiliates Merit LLC, LB Somerset LLC and LB Preferred Somerset
LLC sought for bankruptcy protection in December 2009.
The Debtors' bankruptcy cases are handled by Judge James M. Peck.
Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife,
Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at
Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq
Bankruptcy Solutions serves as claims and noticing agent.
Dennis F. Dunne, Esq., Evan Fleck, Esq., and Dennis O'Donnell,
Esq., at Milbank, Tweed, Hadley & McCloy LLP, in New York, serve
as counsel to the Official Committee of Unsecured Creditors.
Houlihan Lokey Howard & Zukin Capital, Inc., is the Committee's
investment banker.
On Sept. 19, 2008, the Honorable Gerard E. Lynch of the U.S.
District Court for the Southern District of New York, entered an
order commencing liquidation of Lehman Brothers, Inc., pursuant
to the provisions of the Securities Investor Protection Act (Case
No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as
trustee for the SIPA liquidation of the business of LBI.
The Bankruptcy Court approved Barclays Bank Plc's purchase of
Lehman Brothers' North American investment banking and capital
markets operations and supporting infrastructure for US$1.75
billion. Nomura Holdings Inc., the largest brokerage house in
Japan, purchased LBHI's operations in Europe for US$2 plus the
retention of most of employees. Nomura also bought Lehman's
operations in the Asia Pacific for US$225 million.
Lehman emerged from bankruptcy protection on March 6, 2012, more
than three years after it filed the largest bankruptcy in U.S.
history. The Chapter 11 plan for the Lehman companies other than
the broker was confirmed in December 2011.
Lehman made its first payment of $22.5 billion to creditors in
April 2012, a second payment of $10.2 billion on Oct. 1, 2012,
and a third distribution of $14.2 billion on April 4, 2013. The
brokerage is yet to make a first distribution to non-customers,
although customers are being paid in full.
Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
undertaken by Lehman Brothers Holdings, Inc., and other
insolvency and bankruptcy proceedings undertaken by its
affiliates.
LEHMAN BROTHERS: LBI Wants to Disallow $35.6-Mil. in Claims
-----------------------------------------------------------
James Giddens, the trustee of Lehman Brothers Inc., asked the
U.S. Bankruptcy Court in Manhattan to disallow 251 claims, which
seek to recover nearly $35.6 million from the brokerage. The
claims are listed at:
http://bankrupt.com/misc/LBHI_sipa159th_77NoLiability.pdf
http://bankrupt.com/misc/LBHI_sipa160th_31NoLiability.pdf
http://bankrupt.com/misc/LBHI_sipa161st_10InsuffDocs.pdf
http://bankrupt.com/misc/LBHI_sipa162nd_44NoLiability.pdf
http://bankrupt.com/misc/LBHI_sipa163rdOO_89NoLiability.pdf
Meanwhile, the bankruptcy court disallowed 228 claims, which seek
to recover more than $1.034 billion from the brokerage. The
claims are listed at:
http://bankrupt.com/misc/LBHI_sipa140thOO_3InsuffDocs.pdf
http://bankrupt.com/misc/LBHI_sipa142ndOO_39NoLiability.pdf
http://bankrupt.com/misc/LBHI_sipa143rdOO_61NonEmployee.pdf
http://bankrupt.com/misc/LBHI_sipa144thOO_19Amended.pdf
http://bankrupt.com/misc/LBHI_sipa145thOO_7NoLiability.pdf
http://bankrupt.com/misc/LBHI_sipa146thOO_23InsuffDocs.pdf
http://bankrupt.com/misc/LBHI_sipa149thOO_11AssumedPension.pdf
http://bankrupt.com/misc/LBHI_sipa150thOO_31NoLiability.pdf
http://bankrupt.com/misc/LBHI_sipa151stOO_22NoLiability.pdf
http://bankrupt.com/misc/LBHI_sipa152ndOO_12NoSupportDocs.pdf
About Lehman Brothers
Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was
the fourth largest investment bank in the United States. For
more than 150 years, Lehman Brothers has been a leader in the
global financial markets by serving the financial needs of
corporations, governmental units, institutional clients and
individuals worldwide.
Lehman Brothers filed for Chapter 11 bankruptcy (Bankr. S.D.N.Y.
Case No. 08-13555) on Sept. 15, 2008. Lehman's bankruptcy
petition disclosed US$639 billion in assets and US$613 billion in
debts, effectively making the firm's bankruptcy filing the
largest in U.S. history. Several other affiliates followed
thereafter.
Affiliates Merit LLC, LB Somerset LLC and LB Preferred Somerset
LLC sought for bankruptcy protection in December 2009.
The Debtors' bankruptcy cases are handled by Judge James M. Peck.
Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife,
Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at
Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq
Bankruptcy Solutions serves as claims and noticing agent.
Dennis F. Dunne, Esq., Evan Fleck, Esq., and Dennis O'Donnell,
Esq., at Milbank, Tweed, Hadley & McCloy LLP, in New York, serve
as counsel to the Official Committee of Unsecured Creditors.
Houlihan Lokey Howard & Zukin Capital, Inc., is the Committee's
investment banker.
On Sept. 19, 2008, the Honorable Gerard E. Lynch of the U.S.
District Court for the Southern District of New York, entered an
order commencing liquidation of Lehman Brothers, Inc., pursuant
to the provisions of the Securities Investor Protection Act (Case
No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as
trustee for the SIPA liquidation of the business of LBI.
The Bankruptcy Court approved Barclays Bank Plc's purchase of
Lehman Brothers' North American investment banking and capital
markets operations and supporting infrastructure for US$1.75
billion. Nomura Holdings Inc., the largest brokerage house in
Japan, purchased LBHI's operations in Europe for US$2 plus the
retention of most of employees. Nomura also bought Lehman's
operations in the Asia Pacific for US$225 million.
Lehman emerged from bankruptcy protection on March 6, 2012, more
than three years after it filed the largest bankruptcy in U.S.
history. The Chapter 11 plan for the Lehman companies other than
the broker was confirmed in December 2011.
Lehman made its first payment of $22.5 billion to creditors in
April 2012, a second payment of $10.2 billion on Oct. 1, 2012,
and a third distribution of $14.2 billion on April 4, 2013. The
brokerage is yet to make a first distribution to non-customers,
although customers are being paid in full.
Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
undertaken by Lehman Brothers Holdings, Inc., and other
insolvency and bankruptcy proceedings undertaken by its
affiliates.
About Lehman Brothers
Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was
the fourth largest investment bank in the United States. For
more than 150 years, Lehman Brothers has been a leader in the
global financial markets by serving the financial needs of
corporations, governmental units, institutional clients and
individuals worldwide.
Lehman Brothers filed for Chapter 11 bankruptcy (Bankr. S.D.N.Y.
Case No. 08-13555) on Sept. 15, 2008. Lehman's bankruptcy
petition disclosed US$639 billion in assets and US$613 billion in
debts, effectively making the firm's bankruptcy filing the
largest in U.S. history. Several other affiliates followed
thereafter.
Affiliates Merit LLC, LB Somerset LLC and LB Preferred Somerset
LLC sought for bankruptcy protection in December 2009.
The Debtors' bankruptcy cases are handled by Judge James M. Peck.
Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife,
Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at
Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq
Bankruptcy Solutions serves as claims and noticing agent.
Dennis F. Dunne, Esq., Evan Fleck, Esq., and Dennis O'Donnell,
Esq., at Milbank, Tweed, Hadley & McCloy LLP, in New York, serve
as counsel to the Official Committee of Unsecured Creditors.
Houlihan Lokey Howard & Zukin Capital, Inc., is the Committee's
investment banker.
On Sept. 19, 2008, the Honorable Gerard E. Lynch of the U.S.
District Court for the Southern District of New York, entered an
order commencing liquidation of Lehman Brothers, Inc., pursuant
to the provisions of the Securities Investor Protection Act (Case
No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as
trustee for the SIPA liquidation of the business of LBI.
The Bankruptcy Court approved Barclays Bank Plc's purchase of
Lehman Brothers' North American investment banking and capital
markets operations and supporting infrastructure for US$1.75
billion. Nomura Holdings Inc., the largest brokerage house in
Japan, purchased LBHI's operations in Europe for US$2 plus the
retention of most of employees. Nomura also bought Lehman's
operations in the Asia Pacific for US$225 million.
Lehman emerged from bankruptcy protection on March 6, 2012, more
than three years after it filed the largest bankruptcy in U.S.
history. The Chapter 11 plan for the Lehman companies other than
the broker was confirmed in December 2011.
Lehman made its first payment of $22.5 billion to creditors in
April 2012, a second payment of $10.2 billion on Oct. 1, 2012,
and a third distribution of $14.2 billion on April 4, 2013. The
brokerage is yet to make a first distribution to non-customers,
although customers are being paid in full.
Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
undertaken by Lehman Brothers Holdings, Inc., and other
insolvency and bankruptcy proceedings undertaken by its
affiliates.
LEHMAN BROTHERS: Cowen's Fund Expects to Recover LBIE Claims
------------------------------------------------------------
For the third quarter 2013, Cowen Group, Inc. reported a GAAP net
income of $3.6 million, or $0.03 per share, as compared to a GAAP
net loss of $10.6 million,
Peter A. Cohen, Chairman and CEO of Cowen Group said, "In what
continues to be a challenging market, we are proud to report a
profitable third quarter and another record revenue quarter. This
is a result of the progress we have made in elevating the results
in each of our operating businesses. The broker dealer benefited
from a favorable capital raising environment for equities and had
its best quarter for debt raising. At Ramius, we continue to
raise assets, produce solid investment performance and launch new
products, including the Ramius Event Driven Equity Fund, our
fourth alternative mutual fund."
"In September 2013, Ramius' legacy multi-strategy funds received
a significant distribution from Lehman Brothers International
(Europe) ("LBIE") which was subsequently distributed to the
funds' investors in respect of the Omnibus Trust Asset claims
held by our funds. As a creditor of LBIE, we proactively joined
the unsecured creditors' committee of LBIE and, in coordination
with the Administrator, worked diligently for five years towards
a novel solution that would ensure that our clients' assets would
be recovered. The resulting distribution from LBIE was a
landmark event of Lehman's global bankruptcy, and our funds
expect to recover in excess of 100% of the value of the claims
registered in September 2008."
About Cowen Group
New York-based Cowen Group, Inc. -- http://www.cowen.com/-- a
Delaware corporation formed in 2009, is a diversified financial
services firm and, together with its consolidated subsidiaries,
provides alternative investment management, investment banking,
research, and sales and trading services through its two business
segments: Ramius LLC and Cowen and Company, LLC.
About Lehman Brothers
Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was
the fourth largest investment bank in the United States. For
more than 150 years, Lehman Brothers has been a leader in the
global financial markets by serving the financial needs of
corporations, governmental units, institutional clients and
individuals worldwide.
Lehman Brothers filed for Chapter 11 bankruptcy (Bankr. S.D.N.Y.
Case No. 08-13555) on Sept. 15, 2008. Lehman's bankruptcy
petition disclosed US$639 billion in assets and US$613 billion in
debts, effectively making the firm's bankruptcy filing the
largest in U.S. history. Several other affiliates followed
thereafter.
Affiliates Merit LLC, LB Somerset LLC and LB Preferred Somerset
LLC sought for bankruptcy protection in December 2009.
The Debtors' bankruptcy cases are handled by Judge James M. Peck.
Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife,
Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at
Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq
Bankruptcy Solutions serves as claims and noticing agent.
Dennis F. Dunne, Esq., Evan Fleck, Esq., and Dennis O'Donnell,
Esq., at Milbank, Tweed, Hadley & McCloy LLP, in New York, serve
as counsel to the Official Committee of Unsecured Creditors.
Houlihan Lokey Howard & Zukin Capital, Inc., is the Committee's
investment banker.
On Sept. 19, 2008, the Honorable Gerard E. Lynch of the U.S.
District Court for the Southern District of New York, entered an
order commencing liquidation of Lehman Brothers, Inc., pursuant
to the provisions of the Securities Investor Protection Act (Case
No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as
trustee for the SIPA liquidation of the business of LBI.
The Bankruptcy Court approved Barclays Bank Plc's purchase of
Lehman Brothers' North American investment banking and capital
markets operations and supporting infrastructure for US$1.75
billion. Nomura Holdings Inc., the largest brokerage house in
Japan, purchased LBHI's operations in Europe for US$2 plus the
retention of most of employees. Nomura also bought Lehman's
operations in the Asia Pacific for US$225 million.
Lehman emerged from bankruptcy protection on March 6, 2012, more
than three years after it filed the largest bankruptcy in U.S.
history. The Chapter 11 plan for the Lehman companies other than
the broker was confirmed in December 2011.
Lehman made its first payment of $22.5 billion to creditors in
April 2012, a second payment of $10.2 billion on Oct. 1, 2012,
and a third distribution of $14.2 billion on April 4, 2013. The
brokerage is yet to make a first distribution to non-customers,
although customers are being paid in full.
Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
undertaken by Lehman Brothers Holdings, Inc., and other
insolvency and bankruptcy proceedings undertaken by its
affiliates.
LEVEL 3: Completes Offering $640 Million of Senior Notes
--------------------------------------------------------
Level 3 Communications, Inc.'s wholly owned subsidiary, Level 3
Financing, Inc., has completed its previously announced offering
of $640 million aggregate principal amount of its 6.125 percent
Senior Notes due 2021 in a private offering to "qualified
institutional buyers," as defined in Rule 144A under the
Securities Act of 1933, as amended, and non-U.S. persons outside
the United States under Regulation S under the Securities Act of
1933.
The notes will mature on Jan. 15, 2021. Level 3 Financing, Inc.'s
obligations under the 6.125 percent Senior Notes will be fully and
unconditionally guaranteed on an unsecured basis by Level 3
Communications, Inc.
The net proceeds from the offering, together with cash on hand,
will be used to redeem all of Level 3 Financing, Inc.'s
outstanding 10 percent Senior Notes due 2018, including accrued
interest, applicable premiums and expenses.
A notice of redemption was distributed to holders of Level 3
Financing's 10 percent Senior Notes. The redemption of all the
outstanding 10 percent Senior Notes is scheduled to occur on
Dec. 16, 2013.
Additional information is available for free at:
http://is.gd/9nZLjG
About Level 3 Communications
Headquartered in Broomfield, Colorado, Level 3 Communications,
Inc., is a publicly traded international communications company
with one of the world's largest communications and Internet
backbones.
As of June 30, 2013, showed $12.86 billion in total assets, $11.75
billion in total liabilities and $1.11 billion total stockholders'
equity.
* * *
In October 2012, Fitch Ratings affirmed the 'B' Issuer Default
Ratings (IDRs) assigned to Level 3. LVLT's ratings recognize, in
part, the de-leveraging of the company's balance sheet resulting
from its acquisition of Global Crossing Limited (GLBC).
As reported by the TCR on June 5, 2013, Standard & Poor's Ratings
Services raised its corporate credit rating on Broomfield, Colo.-
based global telecommunications provider Level 3 Communications
Inc. to 'B' from 'B-'. "The upgrade reflects improved debt
leverage, initially from the acquisition of the lower-leveraged
Global Crossing in October 2011, and subsequently from realization
of the bulk of what the company expects to eventually be $300
million of annual operating synergies," said Standard & Poor's
credit analyst Richard Siderman.
LEVEL 3: Unit Offering $300 Million Floating Rate Notes
-------------------------------------------------------
Level 3 Communications, Inc.'s wholly owned subsidiary, Level 3
Financing, Inc., has agreed to sell $300 million aggregate
principal amount of its Floating Rate Senior Notes due 2018 in a
private offering to "qualified institutional buyers," as defined
in Rule 144A under the Securities Act of 1933, as amended, and
non-U.S. persons outside the United States under Regulation S
under the Securities Act of 1933. The Floating Rate Senior Notes
will bear interest at LIBOR plus 3.50 percent per annum.
The unsecured Floating Rate Senior Notes were priced to investors
at 100 percent of their principal amount and will mature on
Jan. 15, 2018. Level 3 Financing's obligations under the Floating
Rate Senior Notes will be fully and unconditionally guaranteed on
an unsecured basis by Level 3 Communications, Inc.
The net proceeds from the offering of the Floating Rate Senior
Notes will be used, together with cash on hand, to redeem all $300
million principal amount of Level 3 Financing, Inc.'s outstanding
Floating Rate Senior Notes due 2015. The Floating Rate Senior
Notes due 2015 bear interest at LIBOR plus 3.75 percent.
The offering is expected to be completed on Nov. 26, 2013, subject
to the satisfaction or waiver of customary closing conditions.
About Level 3 Communications
Headquartered in Broomfield, Colorado, Level 3 Communications,
Inc., is a publicly traded international communications company
with one of the world's largest communications and Internet
backbones.
The Company's balance sheet at Sept. 30, 2013, showed $12.85
billion in total assets, $11.70 billion in total liabilities and
$1.14 billion in total stockholders' equity.
* * *
In October 2012, Fitch Ratings affirmed the 'B' Issuer Default
Ratings (IDRs) assigned to Level 3. LVLT's ratings recognize, in
part, the de-leveraging of the company's balance sheet resulting
from its acquisition of Global Crossing Limited (GLBC).
As reported by the TCR on June 5, 2013, Standard & Poor's Ratings
Services raised its corporate credit rating on Broomfield, Colo.-
based global telecommunications provider Level 3 Communications
Inc. to 'B' from 'B-'. "The upgrade reflects improved debt
leverage, initially from the acquisition of the lower-leveraged
Global Crossing in October 2011, and subsequently from realization
of the bulk of what the company expects to eventually be $300
million of annual operating synergies," said Standard & Poor's
credit analyst Richard Siderman.
LIBERTY HARBOR: SWJ Management Says Ch. 11 Plan "Unconfirmable"
---------------------------------------------------------------
SWJ Management, LLC, by its attorneys the Law Offices of David
Carlebach, Esq., objected to the approval of the Disclosure
Statement explaining Liberty Harbor Holding LLC's Chapter 11 Plan.
SWJ Management is the deed holder of record of the assets claimed
by the Debtor.
Mr. Carlebach related that the Debtor concedes and admits that
without the resolution of the Mocco vs. Licata trial, the plan is
patently unconfirmable. In this relation, Mr. Carlebach requested
that, among other things:
a) the Debtor's Disclosure Statement be denied as:
(1) failing to contain adequate information; and
(2) being in support of a plan that is patently
unconfirmable
b) the Court sua sponte dismiss the Debtor's cases since:
(1) the Debtors cannot confirm their current plan under any
circumstance; and
(2) the Debtors cannot confirm any plan within the exclusive
period; and
(3) since all ownership issues are before Judge Rothschild,
by the Court's order dated Oct. 31, the Debtors' cases
no longer serve any legitimate bankruptcy purpose.
As reported in the Troubled Company Reporter on Oct. 31, 2013, the
Debtors filed a Joint Plan of Reorganization and Disclosure
Statement. The Plan will be funded by the Debtors. To the extent
required, the Debtors' principal, Peter Mocco, and his wife,
Lorraine Mocco, and entities owned and controlled by them will
provide whatever funds are needed to consummate the Plan.
As of Oct. 17, 2013, the Moccos have provided these funding to the
Debtors: (a) $2,500,000 on execution of the settlement with
Kathryn and Lynn Kerrigan; (b) $500,000 within 30 days of
execution of the Kerrigan settlement; (c) $3,000,000 on or about
Dec. 21, 2012; and (d) Upon consummation of a sale of land to New
Jersey Transit, an additional $4,000,000 was received by the
Debtors. Further payments totaling in excess of $12 million are,
pursuant to the settlement, to be funded by the the Debtors'
principals in the next five years.
The Plan designates four classes of creditors. Under the Plan,
the modified obligations of the Debtors due to Class 1 Kerrigan
Family Claims and Class 2 JCRA Claims are reaffirmed. The Debtors
do not believe that any funds are owed to City of Jersey City,
other than certain real estate taxes, which the Debtors believe
will have been paid in full prior to the Confirmation Date. The
City of Jersey City is the sole member of Class 3. Class 4 Other
Unsecured Creditors will be paid in full, without interest.
A full-text copy of the Disclosure Statement dated Oct. 17, 2013,
is available for free at:
http://bankrupt.com/misc/LIBERTYHARBOR_DSOct17.PDF
A hearing was set for Nov. 26, 2013, before Judge Novalyn L.
Winfield in Newark, New Jersey, to consider the adequacy of the
Disclosure Statement.
Daniel M. Stolz, Esq. -- dstolz@wjslaw.com -- of Wasserman,
Jurista & Stolz, P.C., represents the Debtors.
About Liberty Harbor
Jersey City, New Jersey-based Liberty Harbor Holding, LLC, along
with two affiliates, sought Chapter 11 protection (Bankr. D.N.J.
Lead Case No. 12-19958) in Newark on April 17, 2012. Each of the
Debtors is solely owned by Peter Mocco.
Liberty, as of April 16, 2012, had total assets of $350.08
million, comprising of $350 million of land, $75,000 in accounts
receivable and $458 cash. The Debtor says that it has
$3.62 million of debt, consisting of accounts payable of $73,500
and unsecured non-priority claims of $3,540,000. The Debtor's
real property consists of Block 60, Jersey City, NJ 100% ownership
Lots 60, 70, 69.26, 61, 62, 63, 64, 65, 25H, 26A, 26B, 27B, 27D.
Affiliates that filed separate petitions are: Liberty Harbor II
Urban Renewal Co., LLC (Case No. 12-19961) and Liberty Harbor
North, Inc. (Case No. 12-19964). The three cases are
administratively consolidated.
Judge Novalyn L. Winfield presides over the case. Wasserman,
Jurista & Stolz, P.C. serves as insolvency counsel and Scarpone &
Vargo serves as special litigation counsel. The petition was
signed by Peter Mocco, managing member.
Roberta A. DeAngelis, U.S. Trustee for Region 3, appointed three
creditors to the Official Committee of Unsecured Creditors in the
Chapter 11 cases of the Debtor.
LIGHTSQUARED INC: Dish Moves to Toss Newest Lawsuit
---------------------------------------------------
Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reports that Charles Ergen's Dish Networks Corp. filed papers on
Nov. 26 seeking dismissal of the latest lawsuit by LightSquared
Inc. or its controlling shareholder Harbinger Capital Partners
LLC.
According to the report, in the Nov. 26 papers, Dish argues that
the new suit by LightSquared, the developer of a satellite-based
wireless communications system, suffers from the same defects that
promoted the bankruptcy judge to throw out an almost identical
suit by Philip Falcone's Harbinger.
Moreover, Dish says the new complaint fails to make out a case for
interference with contract, just like the prior suit. Dish points
to corporate documents saying that Dish subsidiaries were
precluded from buying LightSquared debt and that affiliates
weren't.
The lawsuit is calculated to preclude Ergen and Dish from taking
over LightSquared's spectrum licenses by paying $2.2 billion
through a competing reorganization plan in LightSquared's Chapter
11 case. LightSquared says Ergen-controlled companies bought $1
billion in debt in violation of contract.
There will be a Dec. 10 hearing on Dish's new dismissal effort.
Dec. 10 is also the date for a confirmation hearing to approve one
of the four competing reorganization plans, one each from
LightSquared, Harbinger, a group of secured lenders, and Mast
Capital Management LLC.
About LightSquared Inc.
LightSquared Inc. and 19 of its affiliates filed Chapter 11
bankruptcy petitions (Bankr. S.D.N.Y. Lead Case No. 12-12080) on
May 14, 2012, to resolve regulatory issues that have prevented it
from building its coast-to-coast integrated satellite 4G wireless
network.
LightSquared had invested more than $4 billion to deploy an
integrated satellite-terrestrial network. In February 2012,
however, the U.S. Federal Communications Commission told
LightSquared the agency would revoke a license to build out the
network as it would interfere with global positioning systems used
by the military and various industries. In March 2012, the
Company's partner, Sprint, canceled a master services agreement.
LightSquared's lenders deemed the termination of the Sprint
agreement would trigger cross-defaults under LightSquared's
prepetition credit agreements.
LightSquared and its prepetition lenders attempted to negotiate a
global restructuring that would provide LightSquared with
liquidity and runway necessary to resolve its issues with the FCC.
Despite working diligently and in good faith, however,
LightSquared and the lenders were not able to consummate a global
restructuring on terms acceptable to all interested parties.
Lawyers at Milbank, Tweed, Hadley & McCloy LLP serve as counsel to
the Debtors. Alvarez & Marsal North America, LLC, is the
financial advisor. Kurtzman Carson Consultants LLC serves as
claims and notice agent.
MARINA DISTRICT FINANCE: Fitch Keeps 'B-' Issuer Default Rating
---------------------------------------------------------------
On Nov. 26, 2013, New Jersey became the most significant state to
commence online gambling operations due to its sizable population
and broader suite of available games compared to Nevada and
Delaware. Fitch Ratings believes this will be positive for market
participants, but will not single-handedly turn around the
Atlantic City casino market as its supply-demand imbalance
remains.
Initial revenue estimates by industry observers vary widely. Fitch
believes initial revenues will be hampered by the refusal of some
credit card companies to process online gambling transactions.
Fitch forecasts roughly $200-$300 million in NJ online gambling
revenues next year that may ramp up to $500-$750 million within
several years, well below Governor Christie's public forecast of
$1.2 billion.
Fitch believes notable winners will include the largest Atlantic
City (AC) casino operators with the best brands and databases
(Borgata and Caesars), European online gaming companies
(bwin.party and 888), and U.S. gaming content and platform
suppliers (IGT and Bally).
Losers are likely to be those participants that are slower to
market, have limited ability to invest or engage in promotional
activity, have limited customer databases, and/or have weak land-
based assets. These include Revel, Resorts and Atlantic Club,
which recently filed for bankruptcy. Prospects for mid tier
participants such as Tropicana, Trump, and Golden Nugget are more
variable and will ultimately be determined by the size of the
market and execution.
The degree to which participants benefit will vary and is
contingent upon a number of factors. These factors include the
various commercial agreements in place, the size and quality of
customer databases, ownership structure of the relevant entities,
the popularity and profitability of each website, and any
cannibalization of land-based casino revenue.
Ultimately, there is the potential for up to 60 websites, with
each of the 12 AC casinos granted up to five websites each. There
are 13 approved sites with full play options and another two
approved for limited play options. Fitch does not think the market
will support 60 websites, so speed to market, branding
initiatives, and promotional dollars will determine which ones
become profitable. This will likely be determined over the next 1-
2 years.
Although some market participants will benefit, New Jersey online
gambling is not going to be the savior of the AC casino market. In
some ways, it will be detrimental because it has kept brick and
mortar supply in the market when the level of demand dictates that
some supply should be removed. Annual AC gaming revenues have
declined from more than $5.0 billion in 2006 to roughly $2.8
billion currently due largely to the development of neighboring
markets, yet the number of casinos has remained flat as Revel
replaced Sands.
The prospect of online gaming has contributed to the supply-demand
imbalance in AC as it maintained interest in online gaming
licenses more so than physical casino assets. Fitch thinks it is
unlikely online gaming profits will be used to meaningfully
reinvest in AC's land-based assets and that some supply will shake
out over time.
Fitch maintains an issuer default rating (IDR) of 'B-' with a
Positive Rating Outlook on Marina District Finance Co. , which is
the entity that owns Borgata and is a 50/50 joint venture of Boyd
Gaming (IDR of 'B' with a Stable Rating Outlook) and MGM Resorts
Intl (IDR of 'B' with a Positive Rating Outlook). Fitch also
maintains IDRs of 'CCC' with a Negative Rating Outlooks on both
Caesars Entertainment Corp. and Caesars Entertainment Operating
Co.
Structural considerations will limit Borgata's credit benefits
because its online gaming profits will be split among venture
participants including MGM, Boyd Gaming, and bwin.party while
Caesars' online gaming assets are held outside of CEOC.
MF INVESTMENT: Americas Bullion Agrees to Cash Settlement
---------------------------------------------------------
Americas Bullion Royalty Corp. on Nov. 26 disclosed that it has
reached a settlement with MF Investment Holding Company 1 (Cayman)
Limited with respect to the senior secured facility agreement
dated September 25, 2012 whereby the full amount owing under the
facility agreement will be applied to the purchase price of
certain royalties. After giving effect to the transaction, the
debt with MF Investment is retired and the Company will receive
$22.8 million in cash.
Background
On June 24, 2013 Americas Bullion announced that MF Investment,
part of Orion Resource Partners and the Red Kite Group, indicated
that it had or intended on issuing notices alleging an Event of
Default under the secured facility agreement and asserting rights
to exercise an option to purchase twenty-six royalty interests,
including the Pan and Bald Mountain interests, by paying Americas
Bullion US$35 million.
Terms of the Settlement
Following amicable discussions, Americas Bullion has entered into
an amendment to the senior secured facility agreement with MF
Investment, pursuant to which a nominee of MF Investment exercised
an option to purchase 18 royalties, including the Pan and the Bald
Mountain royalty interests.
In connection with the option exercise, Nevada Royalty Corp., a
wholly owned subsidiary of Americas Bullion has entered into an
agreement of purchase and sale with Orion Royalty Company LLC
pursuant to which NRC has completed the sale of certain royalties
to Orion. Pursuant to the agreement, AMB retired its debt to MF
Investments and NRC received an initial payment of US$8.8 million.
NRC will receive a further US$14 million upon certain post-closing
deliveries being satisfied.
"I am pleased to have reached a mutually beneficial agreement with
Red Kite and Orion where their interests have been met while our
shareholders clearly benefit from having received market value for
certain of our royalty interests," said William M. Sheriff,
Chairman & CEO. "Americas Bullion, in addition to retiring the
Red Kite debt and netting approximately US$22 million cash from
this transaction, continues to hold 14 royalty interests, other
significant Nevada assets, and its Yukon holdings including the
Brewery Creek project. The Board sees great opportunity to build
from this cash position in the current market."
About Americas Bullion Royalty Corp.
Americas Bullion Royalty Corp. invests in undervalued natural
resource assets seeking to provide superior investment returns.
Americas Bullion's assets include royalty holdings across Mexico,
Nevada, Wyoming, Oregon and California; control of the Springer
Tungsten Mine and Mill; the Taylor mill and Humboldt mill site in
Nevada; the Brewery Creek project, and a portfolio of Yukon
exploration properties. The Company provides shareholders with
the potential for exploration success through equity positions in
related companies while continuing to advance and monetize its
holdings.
MICROVISION INC: Elects Thomas Walker as Director
-------------------------------------------------
Thomas M. Walker was elected a director of the MicroVision, Inc.,
Board of Directors. Mr. Walker's employment as executive vice
president, corporate and secretary of the Company ceased effective
Nov. 19, 2013.
David J. Westgor, vice president, general counsel will become
Secretary effective Nov. 19, 2013.
About Microvision Inc.
Headquartered in Redmond, Washington, MicroVision, Inc. (NASDAQ:
MVIS) is the creator of PicoP(R) display technology, an ultra-
miniature laser projection solution for mobile consumer
electronics, automotive head-up displays and other applications.
The Company reported a net loss of $7.09 million on $3.67 million
of total revenue for the six months ended June 30, 2013, compared
with a net loss of $14.77 million on $3.03 million of total
revenue for the corresponding period of 2012.
The Company's balance sheet at June 30, 2013, showed $10.6 million
in total assets, $10.4 million in total liabilities, and
stockholders' equity of $202,000.
MONARCH COMMUNITY: Incurs $754,000 Net Loss in Third Quarter
------------------------------------------------------------
Monarch Community Bancorp, Inc., filed with the U.S. Securities
and Exchange Commission its quarterly report on Form 10-Q
disclosing a net loss available to common stock of $754,000 on
$1.83 million of total interest income for the three months ended
Sept. 30, 2013, as compared with a net loss available to common
stock of $615,000 on $2.10 million of total interest income for
the same period a year ago.
For the nine months ended Sept. 30, 2013, the Company reported a
net loss available to common stock of of $2.11 million on $5.62
million of total interest income as compared with a net loss
available to common stock of $1.48 million on $6.61 million of
total interest income for the same period during the prior year.
The Company's balance sheet at Sept. 30, 2013, showed $167.93
million in total assets, $159.74 million in total liabilities and
$8.19 million in total stockholders' equity.
A copy of the Form 10-Q is available for free at:
http://is.gd/lx1Hp5
About Monarch Community
Coldwater, Michigan-based Monarch Community Bancorp, Inc., was
incorporated in March 2002 under Maryland law to hold all of the
common stock of Monarch Community Bank, formerly known as Branch
County Federal Savings and Loan Association. The Bank converted
to a stock savings institution effective Aug. 29, 2002. In
connection with the conversion, the Company sold 2,314,375 shares
of its common stock in a subscription offering.
Monarch Community incurred a net loss of $353,000 in 2012 as
compared with a net loss of $353,000 in 2011.
Plante & Moran, PLLC, in Grand Rapids, Michigan, issued a "going
concern" qualification on the consolidated financial statements
for the year ended Dec. 31, 2012. The independent auditors noted
that the Corporation has suffered recurring losses from operations
and as of December 31, 2012 did not meet the minimum capital
requirements as established by its regulators, which raises
substantial doubt about the Corporation's ability to continue as a
going concern.
MSD PERFORMANCE: Gets Nod for $78-Mil. Sale to PE Firm
------------------------------------------------------
Law360 reported that a Delaware bankruptcy judge on Nov. 26 gave
auto parts maker MSD Performance Inc. the green light for a $78
million sale to a unit of Z Capital Partners LLC, the private
equity firm that acquired a majority of MSD's secured debt earlier
this year.
According to the report, MSD Performance had been unable to seal a
deal with Z Capital in 2012 and initially faced resistance to a
sale in Chapter 11, but the PE firm's current offer met with no
opposition and won the blessing of U.S. Bankruptcy Court.
In addition to the purchase price, the lender will pay $627,000
cash to cover the cost of wrapping up the bankruptcy and $3.2
million for attorneys' fees incurred in the Chapter 11 case, which
began in early September.
The official unsecured creditors' committee and minority secured
creditors had opposed a quick sale, saying it would give rise to
tax liability required by law to be paid in full before creditors
are entitled distribution. The contract with Z Capital doesn't
obligate the purchaser to pay tax claims. Z Capital acquired 59
percent of the senior debt, according to a court filing.
MSD previously said a sale "may be followed" by a conversion of
the Chapter 11 case to Chapter 7, where a trustee would complete
the liquidation.
About MSD Performance
MSD Performance, Inc., headquartered in El Paso, Texas, operates
in the power sports enthusiast and professional racer markets
where the company maintains leading market share positions across
all of its product categories under the MSD Ignition(R),
Racepak(R) and Powerteq(R) brands. The company's facilities
encompass over 220,000 square feet in six buildings, five of which
are located across the U.S. and one in Shanghai, China.
MSD Performance and its U.S. affiliates sought Chapter 11
protection (Bankr. D. Del. Lead Case No. 13-12286) on Sept. 6,
2013. Ron Turcotte signed the petitions as CEO. The Debtors
disclosed $30,305,656 in assets and $129,242,63 is liabilities as
of the Chapter 11 filing.
The Debtors' restructuring counsel is Jones Day. Their investment
banker is SSG Advisors, LLC. The Debtors are also represented by
Richards Layton and Finger, as local counsel. Logan & Co. is the
claims and notice agent.
The Official Committee of Unsecured Creditors appointed in the
case retained Blank Rome LLP as counsel, and Carl Marks Advisory
Group LLC as financial advisors.
MUSCLEPHARM CORP: Says No Need to Amend Financial Statements
------------------------------------------------------------
MusclePharm Corporation announced that the Audit Committee of its
Board of Directors has reviewed certain matters that are the
subject of the SEC investigation disclosed in a Form 8-K filed on
Sept. 30, 2013, and concluded that no restatement of prior
periods' financial statements is required. The matters reviewed
included a loss of $2.1 million recorded in 2011 in regard to
settlement of accounts payable, the reserve established for
previously disclosed litigation initiated against the Company by
William Bossung, six proposed adjustment entries made by the
auditors in 2012 which were approved by the Audit Committee and
not made by the Company in that year, and, the amounts disclosed
as executive perquisites in the Annual Reports on Form 10-K for
the fiscal years ended 2010, 2011 and 2012.
The Audit Committee has concluded that the entire amount of the
$2.1 million loss in regard to settlement of accounts payable was
properly recorded in 2011 under Generally Accepted Accounting
Principles. The Audit Committee has concluded that a reserve of
$60,000 established in 2012 for the Bossung Litigation, which
settled during the third quarter of 2013 by payment of stock
valued at approximately $250,000, was consistent with GAAP, and
the additional expense of $190,000 was properly recorded in the
third quarter. The Audit Committee concluded prior to the filing
of the 2012 Form 10-K that the six adjustments proposed by the
auditor were immaterial to the 2012 financial statements and have
determined that they were all properly recorded during the first
quarter of 2013. Finally, in regard to the 2010, 2011 and 2012
perquisite disclosures, the Audit Committee has concluded that
they were understated in each of those years by a combined amount
that the Audit Committee presently estimates to be no more than
$200,000. As soon as the Audit Committee finalizes its review of
the perquisites, those final amounts will be disclosed.
The Company continues to cooperate with the SEC investigation
which is also focused on the adequacy of the Company's internal
controls over financial reporting and its prior disclosures of
potentially related party transactions. Working with the
Company's management, the Audit Committee has enhanced certain
internal controls, including in the area of perquisite approval
and disclosure, and will continue this effort. In the second
quarter of 2013, the Company did disclose related party
relationships involving two named executive officers and a vendor
and is evaluating other relationships to determine whether
additional disclosure is necessary.
About MusclePharm
Headquartered in Denver, Colorado, MusclePharm Corporation
(OTC BB: MSLP) -- http://www.muslepharm.com/-- is a healthy life-
style company that develops and manufactures a full line of
National Science Foundation approved nutritional supplements that
are 100 percent free of banned substances. MusclePharm is sold in
over 120 countries and available in over 5,000 U.S. retail
outlets, including GNC and Vitamin Shoppe. MusclePharm products
are also sold in over 100 online stores, including
bodybuilding.com, Amazon.com and Vitacost.com.
The Company reported a net loss of $23.28 million in 2011,
compared with a net loss of $19.56 million in 2010. The Company's
balance sheet at Sept. 30, 2013, showed $41.54 million in total
assets, $18.87 million in total liabilities and $22.67 million in
total stockholders' equity.
In the auditors' report accompanying the consolidated financial
statements for the year ended Dec. 31, 2011, Berman & Company,
P.A., in Boca Raton, Florida, expressed substantial doubt about
the Company's ability to continue as a going concern. The
independent auditors noted that the Company has a net loss of
$23,280,950 and net cash used in operations of $5,801,761 for the
year ended Dec. 31, 2011; and has a working capital deficit of
$13,693,267, and a stockholders' deficit of $12,971,212 at
Dec. 31, 2011.
N-VIRO INTERNATIONAL: Incurs $258,000 Net Loss in Third Quarter
---------------------------------------------------------------
N-Viro International Corporation filed with the U.S. Securities
and Exchange Commission its quarterly report on Form 10-Q
disclosing a net loss of $257,961 on $837,889 of revenues for the
three months ended Sept. 30, 2013, as compared with a net loss of
$527,093 on $877,271 of revenues for the same period a year ago.
For the nine months ended Sept. 30, 2013, the Company reported a
net loss of $1.32 million on $2.55 million of revenues as compared
with a net loss of $1.35 million on $2.76 million of revenues for
the same period a year ago.
As of Sept. 30, 2013, the Company had $1.97 million in total
assets, $2.34 million in total liabilities and a $369,192 total
stockholders' deficit.
A copy of the Form 10-Q is available for free at:
http://is.gd/GMO6tx
Form 10-Q Delayed
The Company was unable to complete the preparation of the
financial statement within the required time period without
unreasonable effort or expense, due to delays in gathering and the
review of information needed to complete the preparation and
inclusion of the required financial statement.
About N-Viro International
Toledo, Ohio-based N-Viro International Corporation owns and
sometimes licenses various N-Viro processes and patented
technologies to treat and recycle wastewater and other bio-organic
wastes, utilizing certain alkaline and mineral by-products
produced by the cement, lime, electrical generation and other
industries.
In its audit report on the consolidated financial statements for
the year ended Dec. 31, 2012, UHY LLP, in Farmington Hills,
Michigan, expressed substantial doubt about N-Viro's ability to
continue as a going concern, citing the Company's recurring
losses, negative cash flow from operations and net working capital
deficiency.
The Company reported a net loss of $1.6 million on $3.6 million of
revenues in 2012, compared with a net loss of $1.6 million of
$5.6 million of revenues in 2011. The Company's balance sheet at
June 30, 2013, showed $2.38 million in total assets, $2.51 million
in total liabilities and a $129,857 total stockholders' deficit.
NATIONAL HOLDINGS: Mark D. Klein Held 8.6% Stake at June 7
----------------------------------------------------------
In an amended Schedule 13D filed with the U.S. Securities and
Exchange Commission, Mark D. Klein and his affiliates disclosed
that as of June 7, 2013, they beneficially owned 11,097,741 shares
of common stock of National Holdings Corporation representing 8.6
percent of the shares outstanding. A copy of the regulatory
filing is available for free at http://is.gd/Rs2PNW
About National Holdings
New York, N.Y.-based National Holdings Corporation is a financial
services organization, operating primarily through its wholly
owned subsidiaries, National Securities Corporation, Finance
Investments, Inc., and EquityStation, Inc. The Broker-Dealer
Subsidiaries conduct a national securities brokerage business
through their main offices in New York, New York, Boca Raton,
Florida, and Seattle, Washington.
The Company incurred a net loss of $1.93 million for the year
ended Sept. 30, 2012, compared with a net loss of $4.71 million
during the prior year. The Company's balance sheet at March 31,
2013, showed $23.85 million in total assets, $12.88 million in
total liabilities and $10.97 million in total stockholders'
equity.
Sherb & Co., LLP, in Boca Raton, Florida, issued a "going concern"
qualification on the consolidated financial statements for the
year ended Sept. 30, 2012. The independent auditors noted that
the Company has incurred significant losses and has a working
capital deficit as of Sept. 30, 2012, that raise substantial doubt
about the Company's ability to continue as a going concern.
Bankruptcy Warning
"Our independent public accounting firm has issued an opinion on
our consolidated financial statements that states that the
consolidated financial statements were prepared assuming we will
continue as a going concern and further states that our recurring
losses from operations, stockholders' deficit and inability to
generate sufficient cash flow to meet our obligations and sustain
our operations raise substantial doubt about our ability to
continue as a going concern. Our future is dependent on our
ability to sustain profitability and obtain additional financing.
If we fail to do so for any reason, we would not be able to
continue as a going concern and could potentially be forced to
seek relief through a filing under the U.S. Bankruptcy Code," the
Company said in its annual report for the year ended Sept. 30,
2012.
NATIONAL PLANNING: Ordered to Pay $6.2-Mil. for Losses
------------------------------------------------------
Corrie Driebusch, writing for DBR Small Cap, reported that an
arbitration panel has ordered that Santa Monica, Calif., broker-
dealer National Planning Corporation pay nearly $6.2 million to
two investors for losses they suffered in real-estate-related
investments.
NET ELEMENT: Incurs $3.8 Million Net Loss in Third Quarter
----------------------------------------------------------
Net Element International reported a net loss of $3.86 million on
$6.52 million of net revenues for the three months ended Sept. 30,
2013, as compared with a net loss of $1.81 million on $170,691 of
net revenues for the same period during the prior year.
For the nine months ended Sept. 30, 2013, the Company reported a
net loss of $27.33 million on $12.99 million of net revenues as
compared with a net loss of $8.91 million on $222,207 of net
revenues for the same period a year ago.
"Actions taken in the third quarter are key enablers in our
pursuit of growing revenues and sustained profitability," said
Oleg Firer, CEO of Net Element. Adding, "By divesting our
entertainment companies we no longer have the research &
development costs associated with these businesses. Moreover, by
establishing key strategic partnerships and integrations within
our core competency divisions we expand our capabilities for
innovation and opportunity for revenue growth."
The Company's balance sheet at Sept. 30, 2013, showed $26.85
million in total assets, $37.26 million in total liabilities and a
$10.40 million total stockholders' deficit.
A copy of the press release is available for free at:
http://is.gd/cdeMrV
A copy of the Form 10-Q is available for free at:
http://is.gd/qrkahM
About Net Element
Miami, Fla.-based Net Element, Inc. (formerly TOT Energy, Inc.)
currently operates several online media Web sites in the film,
auto racing and emerging music talent markets.
Following the 2011 results, Daszkal Bolton LLP, in Fort
Lauderdale, Florida, expressed substantial doubt about the
Company's ability to continue as a going concern. The independent
auditors noted that the Company has experienced recurring losses
and has an accumulated deficit and stockholders' deficiency at
Dec. 31, 2011.
The Company reported a net loss of $24.85 million in 2011,
compared with a net loss of $3.10 million in 2010.
NORTHCORE TECHNOLOGIES: Incurs C$267,000 Net Loss in 3rd Quarter
----------------------------------------------------------------
Northcore Technologies Inc. reported a loss and comprehensive loss
of C$267,000 on C$193,000 of revenues for the three months ended
Sept. 30, 2013, as compared with a loss and comprehensive loss of
C$535,000 on C$387,000 of revenues for the same period during the
prior year.
For the nine months ended Sept. 30, 2013, the Company reported a
loss and comprehensive loss of C$1.07 million on C$773,000 of
revenues as compared with a loss and comprehensive loss of C$1.82
million on C$1.03 million of revenues for the same period a year
ago.
The Company's balance sheet at Sept. 30, 2013, showed C$2.38
million in total assets, C$1.49 million in total liabilities and
C$895,000 in total shareholders' equity.
A copy of the press release is available for free at:
http://is.gd/pbphzs
About Northcore Technologies
Toronto, Ontario-based Northcore Technologies Inc. (TSX: NTI; OTC
BB: NTLNF) -- http://www.northcore.com/-- provides a Working
Capital Engine(TM) that helps organizations source, manage,
appraise and sell their capital equipment. Northcore offers its
software solutions and support services to a growing number of
customers in a variety of sectors including financial services,
manufacturing, oil and gas and government.
Northcore owns 50 percent of GE Asset Manager, LLC, a joint
business venture with GE. Together, the companies work with
leading organizations around the world to help them liberate more
capital value from their assets.
The Company reported a loss and comprehensive loss of
C$3.93 million in 2011, compared with a loss and comprehensive
loss of C$3.03 million in 2010.
NORTH TEXAS BANCSHARES: Park Cities Bank Auction Set for Dec. 9
---------------------------------------------------------------
Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reports that Park Cities Bank in Dallas will be sold at auction on
Dec. 9, under procedures approved by the U.S. Bankruptcy Court in
Delaware.
According to the report, the bank's owner, North Texas Bancshares
Inc., filed for Chapter 11 protection on Oct. 16.
Absent a better offer, Park Cities Financial Group Inc. will buy
the bank from North Texas Bancshares for about $7.4 million in
cash while making a capital contribution of as much as $40
million.
Competing bids are due Dec. 4. The sale-approval hearing is Dec.
13.
North Texas Bancshares of Delaware, Inc. (Case No. 13-12699) and
North Texas Bancshares, Inc. (Case No. 13-12700) sought protection
under Chapter 11 of the Bankruptcy Code on Oct. 16, 2013, before
the United States Bankruptcy Court for the District of Delaware.
The jointly administered cases are before Judge Kevin Gross.
The Debtors' are represented by Tobey M. Daluz, Esq., Leslie C.
Heilman, Esq., and Matthew Summers, Esq., at Ballard Spahr LLP, in
Wilmington, Delaware. The Debtors' special counsel is Bracewell &
Giuliani LLP. Commerce Street Capital, LLC, serves as the
Debtors' financial advisors.
OCZ TECHNOLOGY: Toshiba Offers to Buy Assets in Bankruptcy
----------------------------------------------------------
OCZ Technology Group, Inc. disclosed that on November 25, 2013, it
received notices that Hercules Technology Growth Capital, Inc.
took exclusive control of the Company's depository accounts at
Silicon Valley Bank and Wells Fargo Bank, National Association.
As set forth in the Company's recent SEC filings, Hercules and the
Company are parties to a loan and security agreement. As
previously reported, the Company is not in compliance with certain
of the operating ratios and covenants in the loan agreement. As a
result of such action and pursuant to Hercules' written
instruction, the depository institutions disbursed the cash in the
Company's respective accounts to accounts under the control of
Hercules.
The Company has received an offer from Toshiba Corporation to
acquire substantially all of the Company's assets in a bankruptcy
proceeding. The parties have substantially completed negotiations
on an asset purchase agreement and OCZ believes that all the
material terms have been agreed to. The agreement is subject to
various conditions: the preservation of the value of the business,
including the retention of employees, the negotiation and
execution of definitive documentation, the filing of bankruptcy
petitions by the Company and certain of its subsidiaries,
Toshiba's offer being accepted by the bankruptcy court as the
highest and best offer under the circumstances after an auction
process conducted under the relevant provisions of the United
States Bankruptcy Code, and other customary closing conditions.
The Company expects to file a petition for bankruptcy shortly
after completing final documentation with Toshiba and Hercules,
and to conduct the court-supervised auction process to attempt to
maximize the value of the Company's assets and operations in an
orderly process. More details will become available when the
Company files its petition for bankruptcy.
If the Company is not able to agree to final documentation with
Toshiba, the Company expects to imminently file a petition for
bankruptcy and liquidate.
San Jose, Calif.-based OCZ Technology Group, Inc. (Nasdaq: OCZ)
designs, manufactures, and distributes high-performance solid-
state storage solutions and premium computer components.
OGX PETROLEO: Talks With Bondholders Have Advanced
--------------------------------------------------
Luciana Magalhaes, writing for The Wall Street Journal, reported
that Brazilian oil company OGX Petroleo e Gas Participacoes,
controlled by former billionaire Eike Batista, said in a
regulatory filing on Nov. 27 that talks with bondholders are
advancing but haven't yet come to a conclusion.
According to the report, OGX said it is in talks with creditors
representing more than 50% of the bonds issued by its subsidiary,
OGX Austria GmbH. The company has a total of $3.6 billion in bonds
outstanding.
The oil firm, once the backbone of Mr. Batista's infrastructure
empire, filed for bankruptcy protection at the end of October
after missing a bond interest payment, the report recalled.
The company raised billions of dollars from capital markets to
invest in exploring for oil and gas, mostly in Brazil, but was
unable to meet its ambitious production targets, the report said.
Advisers representing OGX and its main bondholders, U.S.-based
investment firms Pacific Investment Management Co., or Pimco, and
BlackRock Inc. have been in meetings in New York since Nov. 25,
according to a person familiar with the negotiations, the report
related. OGX has asked bondholders for fresh cash to start
production at its Tubarao Martelo oil field, the only field the
company considers economically viable, the person said.
About OGX Petroleo
Based in Rio de Janeiro, Brazil, OGX Petroleo e Gas Participaaoes
S.A. is an independent exploration and production company with
operations in Latin America.
OGX filed for bankruptcy in a business tribunal in Rio de Janeiro
on Oct. 30, 2013, case number 0377620-56.2013.8.19.0001. The
bankruptcy filing puts $3.6 billion of dollar bonds into default
in the largest corporate debt debacle on record in Latin America.
The filing by the oil company that transformed Eike Batista into
Brazil's richest man followed a 16-month decline that wiped out
more than $30 billion of his personal fortune.
The filing, which in Brazil is called a judicial recovery, follows
months of negotiations to restructure the dollar bonds, in which
OGX sought to convert debt to equity and secure as much as $500
million in new funds. OGX said Oct. 29 that the talks concluded
without an agreement. The company's cash fell to about $82 million
at the end of September, not enough to sustain operations further
than December.
OHANA GROUP: W. Fargo Opposes Exclusivity Extension Beyond Dec. 10
------------------------------------------------------------------
Wells Fargo Bank, N.A., as trustee for the Registered Holders of
Credit Suisse First Boston Mortgage Securities Corp., Commercial
Mortgage Pass-Through Certificates, Series 2007-C5, objects in a
limited manner to Debtor Ohana Group, LLC's motion to extend the
exclusivity period for confirmation of the Debtor's Plan for a
period of approximately forty-five days beyond the current
deadline of Dec. 2, 2013, or until Jan. 16, 2014.
According to Noteholder, it does not object to a limited extension
of the exclusivity period until the conclusion of the hearings on
confirmation of the Plan, which are anticipated to be completed on
Dec. 10, 2013. However, it objects to any extension of the
exclusivity period beyond the Final Hearing Date.
Noteholder cites these reasons in its opposition:
1. By the final hearing date, the Court will have heard the
Debtor's and Noteholder's arguments for and against confirmation.
If the Plan is confirmed, then the issue of exclusivity will be
moot. If, however, the Plan is not confirmed, the Court should
allow other parties to propose alternative plans.
2. Termination of the exclusivity period is warranted because
the Plan includes preferential treatment for the Debtor's
insiders. Essentially, the Plan permits Debtor's equity holders
to retain their equity in Debtor while impairing senior creditors,
including Noteholder, without the equity holders adding new value
to the estate.
3. Cause does not exist to extend exclusivity beyond the
Confirmation Hearing.
-- Regardless of who is to blame for the failure to reach a
Consensual resolution, everyone should be in agreement that
the failure to reach a negotiated settlement was not for a
lack of sufficient time.
-- Noteholder does not believe that any additional time will
likely yield a consensual plan.
-- Notwithstanding the best interest of creditors, Debtor has
been unwilling to pursue a sale strategy ? focusing all of
its efforts on reorganization.
-- Little progress toward a consensual resolution has been made
and it is extremely unlikely that the Debtor will make any
material progress toward a confirmable or consensual plan
after the Final Hearing Date.
-- The Debtor will have its opportunity to show that
reorganization is a viable strategy at the confirmation
hearing. If the Plan is not confirmed, it is unlikely
that any confirmable plan will be forthcoming.
-- While Debtor has not yet missed any payments on its bills
as they come due, it is clear from a review of Debtor's
filed monthly operating reports that Debtor's cash position
is deteriorating. It is only a matter of time before Debtor
defaults on its obligations.
As reported in the TCR on Sept. 19, 2013, the Debtors asks the
U.S. Bankruptcy Court for the Western District of Washington to
further extend its exclusive period to obtain acceptances of its
Plan of Reorganization by 60 days, to and including Dec. 2, 2013,
to give it a full opportunity to seek and obtain confirmation of
its Plan.
Debtor's Reply to Noteholder's Limited
Objection to Motion to Extend Exclusivity
In its reply to Noteholders' opposition to its motion to extend
exclusivity, the Debtor says that the confirmation hearing may not
conclude on Dec. 10, 2013, and even if it does, the Court may not
issue a ruling on the Plan on the same day.
Debtor explains that if exclusivity is not extended beyond
December 10th and the Court does not rule on the Debtor's at the
close of the Confirmation Hearing, the Debtor will be force to
file another motion to extend exclusivity, and likely a motion to
shorten time for the hearing on the motion.
About Ohana Group LLC
Ohana Group, LLC, is a Washington limited liability company formed
in 2006 for the purpose of managing and operating a mixed-used
real property development located at 3601 Fremont Avenue N. in
Seattle, Washington. The Company filed for Chapter 11 bankruptcy
(Bankr. W.D. Wash. Case No. 12-21904) on Nov. 30, 2012. The
Debtor's members are Patricia Cawdrey and Daniel Cawdrey, Jr.
Judge Marc Barreca oversees the case. James I. Day, Esq., at Bush
Strout & Kornfeld LLP, in Seattle, serves as bankruptcy counsel.
The Law Offices of Brian H. Krikorian represents the Debtor as
special counsel in connection with the litigation against one of
the Debtor's former tenants. In its petition, the Debtor
scheduled $16,000,000 in assets and $11,696,131 in liabilities.
OHANA GROUP: Amends Disclosures for Reorganization Plan
-------------------------------------------------------
Ohana Group, LLC, filed with the U.S. Bankruptcy Court for the
Western District of Washington on Nov. 1, 2013, a First Amended
Disclosure Statement with respect to the Debtor's proposed plan of
reorganization.
Under the proposed Plan, the Debtor will continue to operate the
Project in the ordinary course of business. Funding for payments
to creditors under the Plan will come from Cash on hand as of the
Effective Date, and operating revenues. The Debtor or its
designee will act as disbursing agent for payments and
distributions due under the Plan.
The secured claim of Wells Fargo, N.A., as trustee for the
registered Holders of Credit Suisse First Boston Mortgage
Securities Corp., Commercial Mortgage Pass-Through Certificates,
Series 2007-C5 (Class 1) will be paid as follows, with each
monthly payment being made on or before the 15th day of each
month: commencing in the first full month following the Effective
Date and continuing each month through the month prior to the
Class 1 Maturity Date, the Debtor will make equal monthly
principal and interest payments on the Class 1 Claim based upon a
30-year amortization, with interest accruing on the unpaid
principal balance at the rate of 4.50% per annum, with all amounts
owing on the Class 1 Claim due and payable on the Class 1 Maturity
Date.
Holders of administrative convenience class (Class 3) arising from
all unsecured claims in the amount of $1,500 or less, including
allowed claims in an amount greater than $1,500 of claimants
electing on the ballot to be treated as if holding an allowed
claim in the amount of $1,500, will receive a cash payment equal
to the full amount of their allowed Claim, 30 business days after
the Effective Date.
Holders of other general unsecured claims (Class 4) will be paid
in full in 12 equal monthly payments, the first of which will be
due on the 15th day of the first full month following the
Effective Date. Interest will accrue on the unpaid principal
balance of each Class 4 Claim at the Federal Judgment Rate.
Members or holders of interests in the Debtor (Class 6) will
retain their interests following confirmation but will receive no
distributions on account of such interests (i) if there exists a
default under payments owing to any class, or (ii) if the Debtor
will fail to make any payment due on the Effective Date.
A copy of the First Amended Disclosure Statement is available at:
http://bankrupt.com/misc/ohanagroup.doc172.pdf
About Ohana Group LLC
Ohana Group, LLC, is a Washington limited liability company formed
in 2006 for the purpose of managing and operating a mixed-used
real property development located at 3601 Fremont Avenue N. in
Seattle, Washington. The Company filed for Chapter 11 bankruptcy
(Bankr. W.D. Wash. Case No. 12-21904) on Nov. 30, 2012. The
Debtor's members are Patricia Cawdrey and Daniel Cawdrey, Jr.
Judge Marc Barreca oversees the case. James I. Day, Esq., at Bush
Strout & Kornfeld LLP, in Seattle, serves as bankruptcy counsel.
The Law Offices of Brian H. Krikorian represents the Debtor as
special counsel in connection with the litigation against one of
the Debtor's former tenants. In its petition, the Debtor
scheduled $16,000,000 in assets and $11,696,131 in liabilities.
ORAGENICS INC: Sells $11 Million Worth of Common Shares
-------------------------------------------------------
Oragenics, Inc., has priced an underwritten public offering of
4,400,000 shares of its common stock at a public offering price of
$2.50 per share for aggregate gross proceeds of $11 million, prior
to underwriting discounts and offering expenses. The offering is
expected to close on or about Nov. 20, 2013, subject to
satisfaction of customary closing conditions.
Griffin Securities, Inc., is acting as underwriter for the
offering.
Oragenics intends to use the net proceeds from the public offering
for continued development of its lantibiotics program and for
general corporate and working capital purposes.
About Oragenics Inc.
Tampa, Fla.-based Oragenics, Inc. -- http://www.oragenics.com/--
is a biopharmaceutical company focused primarily on oral health
products and novel antibiotics. Within oral health, Oragenics is
developing its pharmaceutical product candidate, SMaRT Replacement
Therapy, and also commercializing its oral probiotic product,
ProBiora3. Within antibiotics, Oragenics is developing a
pharmaceutical candidate, MU1140-S and intends to use its
patented, novel organic chemistry platform to create additional
antibiotics for therapeutic use.
Oragenics incurred a net loss of $13.09 million in 2012, as
compared with a net loss of $7.67 million in 2011. As of June 30,
2013, the Company had $7.07 million in total assets, $1.38 million
in total liabilities, all current, and $5.68 million in total
shareholders' equity.
PACIFIC FUNDING: Case Summary & 4 Unsecured Creditors
-----------------------------------------------------
Debtor: Pacific Funding Group Inc.
7379 Greenbush Ave.
North Hollywood, CA 91605
Case No.: 13-17434
Chapter 11 Petition Date: November 26, 2013
Court: United States Bankruptcy Court
Central District Of California (San Fernando Valley)
Debtor's Counsel: Kent Salveson, Esq.
28391 Avenida La Mancha
San Juan Capistrano, CA 92675
Tel: 949-291-7393
Fax: 949-248-1199
Email: kent@eexcel.com
Total Assets: $10.14 million
Total Debts: $2.63 million
The petition was signed by Gary Pietruszka, president.
List of Debtor's four Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Glazer And Blinder LLP Trade Debt $950,000
23945 Calabasas Rd.; #20
Calabasas, CA 91302
Mark Goodfriend Trade Debt $250,000
16255 Ventura Blvd; #205
Encino, CA 91436
Shalom Rubanowitz Trade Debt 52,000
8281 Melrose Ave.
Los Angeles, CA 90046
Gish Seiden Trade Debt $8,000
Accountantcy
21700 Oxnard St.; #850
Woodland Hills, CA 91367
PANACHE BEVERAGE: Incurs $1.5 Million Net Loss in Third Quarter
---------------------------------------------------------------
Panache Beverage Inc. filed with the U.S. Securities and Exchange
Commission its quarterly report on Form 10-Q disclosing a net loss
attributable to the Company of $1.52 million on $306,159 of net
revenues for the three months ended Sept. 30, 2013, as compared
with a net loss attributable to the Company of $684,699 on
$271,241 of net revenues for the same period a year ago.
For the nine months ended Sept. 30, 2013, the Company reported a
net loss attributable to the Company of $3.26 million on $3.14
million of net revenues as compared with a net loss attributable
to the Company of $2.28 million on $1.31 million of net revenues
for the same period a year ago.
The Company's balance sheet at Sept. 30, 2013, showed $9.24
million in total assets, $14.67 million in total liabilities and a
$5.42 million total deficit.
A copy of the Form 10-Q is available for free at:
http://is.gd/rWHTKb
About Panache Beverage
New York-based Panache Beverage, Inc., specializes in the
strategic development and aggressive early growth of spirits
brands establishing its assets as viable and attractive
acquisition candidates for the major global spirits companies.
Panache builds its brands as individual acquisition candidates
while continuing to develop its pipeline of new brands into the
Panache portfolio.
Silberstein Ungar, PLLC, in Bingham Farms, Michigan, expressed
substantial doubt about the Company's ability to continue as a
going concern, following its audit of the Company's financial
statements for the year ended Dec. 31, 2012. The independent
auditors noted that the Company has negative working capital, and
has incurred losses from operations.
PEER REVIEW: Delays Form 10-Q for Third Quarter
-----------------------------------------------
Peer Review Mediation and Arbitration, Inc., filed with the U.S.
Securities and Exchange Commission a Notification of Late Filing
on Form 12b-25 with respect to its quarterly report on Form 10-Q
for the quarter ended Sept. 30, 2013. The Corporation was not
able to timely complete its financial statements to electronically
file the required form.
About Peer Review
Deerfield Beach, Fla.-based Peer Review Mediation and Arbitration,
Inc., was incorporated in the State of Florida on April 16, 2001.
The Company provides peer review services and expertise to law
firms, medical practitioners, insurance companies, hospitals and
other organizations in regard to personal injury, professional
liability and quality review.
The Company's balance sheet at Sept. 30, 2012, showed $1.8 million
in total assets, $5.9 million in total liabilities, and a
stockholders' deficit of $4.1 million.
As reported in the TCR on Aug. 6, 2012, Peter Messineo, CPA, in
Palm Harbor, Fla., expressed substantial doubt about Peer Review's
ability to continue as a going concern, following the Company's
results for the fiscal year ended Dec. 31, 2011. Mr. Messineo
noted that the Company has recurring losses from operations, a
working capital deficit, negative cash flows from operations and a
stockholders' deficit.
PETTIT OIL: Fuel Distributor Files Chapter 11 in Washington State
-----------------------------------------------------------------
Pettit Oil Co., a distributor of bulk fuel and lubricants, filed a
petition for Chapter 11 protection (Bankr. W.D. Wash. Case No. 13-
bk-47285) on Nov. 25 in Tacoma, Washington.
Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reports that based in Lakewood, Washington, Pettit supplies
customers in the western part of the state. Assets are on the
books for $18.7 million, against debt of $22.5 million.
Two bank creditors are owed a total of about $20.2 million. The
lenders are KeyBank NA and U.S. Bank NA.
Last year, Pettit generated revenue of $319.1 million, with $1.3
million in cash flow. So far this year, revenue is $172.2 million,
with $6.1 million in cash flow.
Pettit asked the bankruptcy court for authority to pay pre-
bankruptcy debt to four main suppliers. Otherwise, Pettit said,
supplies will be cut off, resulting in the immediate loss of
customers.
PETROGLOBE INC: Voluntary Assignment in Bankruptcy in Canada
------------------------------------------------------------
PetroGlobe Inc. on Nov. 26 advised that it has filed a voluntary
assignment in bankruptcy pursuant to the provisions of the
Bankruptcy and Insolvency Act. In conjunction with the filing,
the Office of the Superintendant of Bankruptcy has appointed
Hudson & Company Insolvency Trustees Inc. as Trustee in
Bankruptcy, and that appoint was affirmed by the creditors at a
meeting of creditors held on November 5, 2013.
The Board of Directors of PetroGlobe authorized the filing of the
bankruptcy as result of the inability to repay the indebtedness of
the Corporation as demanded by its lender under its credit
facility, and as a result is no longer solvent. The Company also
advised that the Officers and Directors of the Company have
resigned and that the Company will remain halted and could be
subject to a suspension of trading pursuant to the policies of the
TSX Venture Exchange. Any inquiries with respect to the
operations of the Company or its assets can be made to Hudson &
Company Insolvency Trustees Inc.at 200, 625 - 11 Avenue SW
Calgary, Alberta T2R 0E1 Attention: Bruce Hudson, President
(telephone 403-265-4357).
PetroGlobe Inc. -- http://www.petroglobe.com-- is an upstream
energy company active in the exploration and production of oil and
natural gas in Alberta. PetroGlobe is engaged in the business of
exploring, developing and producing oil and natural gas directly
in Alberta, Canada. The Company's properties include Pembina
Cardium light oil, Pembina Edmonton Sands natural gas, Red Earth
Slave Point light oil and Sawtooth oil in the Grand Forks/Taber
area of southern Alberta.
PLUG POWER: Incurs $16 Million Net Loss in Third Quarter
--------------------------------------------------------
Plug Power Inc. filed with the U.S. Securities and Exchange
Commission its quarterly report on Form 10-Q disclosing a net loss
attributable to the Company of $15.89 million on $4.62 million of
total revenue for the three months ended Sept. 30, 2013, as
compared with a net loss attributable to the Company of $10.32
million on $4.77 million of total revenue for the same period
during the prior year.
For the nine months ended Sept. 30, 2013, the Company reported a
net loss attributable to the Company of $33.79 million on $18.56
million of total revenue as compared with a net loss attributable
to the Company of $23.38 million on $20.18 million of total
revenue for the same period a year ago.
As of Sept. 30, 2013, the Company had $40.03 million in total
assets, $35.36 million in total liabilities, $2.45 million in
series C redeemable convertible preferred stock, and $2.21 million
in total stockholders' equity.
"The demand for fuel cells in the material handling market has
always been robust. Our customers are expanding their successful
deployments - and the word is spreading in the industry. Now that
we have a strong balance sheet, that demand is turning into
orders," said Andy Marsh, chief executive officer. "I'm expecting
a 'blowout' number of orders in the fourth quarter as we start to
close some of these multi-site deals and gain new customer wins. I
believe that this momentum will result in the 2014 revenue we need
to achieve our EBITDAS break even goal."
Bankruptcy Warning
"Our cash requirements relate primarily to working capital needed
to operate and grow our business, including funding operating
expenses, growth in inventory to support both shipments of new
units and servicing the installed base, and continued development
and expansion of our products. Our ability to meet our future
liquidity needs, capital requirements, and to achieve
profitability will depend upon numerous factors, including the
timing and quantity of product orders and shipments; the timing
and amount of our operating expenses; the timing and costs of
working capital needs; the timing and costs of building a sales
base; the timing and costs of developing marketing and
distribution channels; the timing and costs of product service
requirements; the timing and costs of hiring and training product
staff; the extent to which our products gain market acceptance;
the timing and costs of product development and introductions; the
extent of our ongoing and any new research and development
programs; and changes in our strategy or our planned activities.
If we are unable to fund our operations without additional
external financing and therefore cannot sustain future operations,
we may be required to delay, reduce and/or cease our operations
and/or seek bankruptcy protection," the Company said in the
Report.
A copy of the Form 10-Q is available for free at:
http://is.gd/672aLL
About Plug Power
Plug Power Inc. is a provider of alternative energy technology
focused on the design, development, commercialization and
manufacture of fuel cell systems for the industrial off-road
(forklift or material handling) market.
KPMG LLP, in Albany, New York, expressed substantial doubt about
Plug Power's ability to continue as a going concern, following
their audit of the Company's financial statements for the year
ended Dec. 31, 2012, citing the Company's recurring losses from
operations and substantial decline in working capital.
PRESIDENTIAL REALTY: Posts $4 Million Net Income in 3rd Quarter
---------------------------------------------------------------
Presidential Realty Corporation filed with the U.S. Securities and
Exchange Commission its quarterly report on Form 10-Q disclosing
net income of $4.15 million on $209,690 of total revenues for the
three months ended Sept. 30, 2013, as compared with a net loss of
$628,248 on $194,202 of total revenues for the same period during
the prior year.
For the nine months ended Sept. 30, 2013, the Company reported net
income of $2.96 million on $639,597 of total revenues as compared
with a net loss of $1.73 million on $579,062 of total revenues for
the same period a year ago.
The Company's balance sheet at Sept. 30, 2013, showed $1.58
million in total assets, $1.92 million in total liabilities and a
$339,314 total deficit.
The Company was unable to file its Quarterly Report on Form 10-Q
for the fiscal quarter ended Sept. 30, 2013, within the prescribed
period because of a delay in computing the effect on the Company's
financial statements of the foreclosure sale of the Company's
property in Hato Rey Puerto Rico.
A copy of the Form 10-Q is available for free at:
http://is.gd/4nmvJc
About Presidential Realty
Headquartered in White Plains, New York, Presidential Realty
Corporation, a real estate investment trust, is engaged
principally in the ownership of income-producing real estate and
in the holding of notes and mortgages secured by real estate or
interests in real estate. On Jan. 20, 2011, Presidential
stockholders approved a plan of liquidation, which provides for
the sale of all of the Company's assets over time and the
distribution of the net proceeds of sale to the stockholders after
satisfaction of the Company's liabilities.
Following the 2011 results, Holtz, Rubenstein Reminick LLP, in
Melville, New York, expressed substantial doubt about the
Company's ability to continue as a going concern. The independent
auditors noted that the Company has suffered recurring losses from
operations and has a working capital deficiency.
The Company reported a net loss of $6.16 million in 2011,
compared with a net loss of $2.57 million in 2010.
PRIVATE MEDIA: Delays Form 10-Q for Third Quarter
-------------------------------------------------
Private Media Group, Inc., filed with the U.S. Securities and
Exchange Commission a Notification of Late Filing on Form 12b-25
with respect to its quarterly report on Form 10-Q for the quarter
ended Sept. 30, 2013.
Private Media said it is currently (i) reorganizing its
subsidiaries and (ii) restructuring the accounting departments and
systems of both the Company and its subsidiaries. As a result,
the Company did not receive certain of the financial information
necessary to complete the preparation of the Company's Form 10-Q
for the quarter ended Sept. 30, 2013.
Headquartered in Barcelona, Spain, Private Media Group, Inc.,
acquires worldwide rights to adult media produced for the Company
by independent producers and then processes this content into
products suitable for popular physical media formats such as print
publications, DVDs, digital media platforms (such as internet
websites, mobile telephony and transactional television), and
broadcasting (which includes cable, satellite and IPTV).
The Company's balance sheet at June 30, 2013, showed
EUR 6.84 million in total assets, EUR 7.70 million in total
liabilities, EUR 8.0 million of EUR 10.00 Series B 6% Convertible
Redeemable Preferred Stock, and a stockholders' deficit of
EUR 8.86 million.
QUICKSILVER RESOURCES: Borrowing Base Reaffirmed at $350 Million
----------------------------------------------------------------
Quicksilver Resources Inc. announced that its bank group comprised
of 20 lenders has reaffirmed the $350 million global borrowing
base on the company's Combined Credit Agreements.
The Company also closed an amendment to its Combined Credit
Agreements on Nov. 15, 2013, which amended the minimum interest
coverage ratio in the fourth quarter of 2013 through the second
quarter of 2014 to 1.10x.
As of Oct. 31, 2013, the company had combined liquidity of $341
million comprised of availability under the Combined Credit
Agreements and cash and short-term investments.
A copy of the Omnibus Amendment is available for free at:
http://is.gd/HzW8te
About Quicksilver
Quicksilver Resources Inc. is an exploration and production
company engaged in the development and production of long-lived
natural gas and oil properties onshore North America. Based in
Fort Worth, Texas, the company is widely recognized as a leader in
the development and production from unconventional reservoirs
including shale gas, and coal bed methane. Following more than 30
years of operating as a private company, Quicksilver became public
in 1999 and is listed on the New York Stock Exchange under the
ticker symbol KWK. The company has U.S. offices in Fort Worth,
Texas; Glen Rose, Texas; Steamboat Springs, Colorado; Craig,
Colorado and Cut Bank, Montana. The Company's Canadian
subsidiary, Quicksilver Resources Canada Inc., is headquartered in
Calgary, Alberta.
As of Sept. 30, 2013, the Company had $1.33 billion in total
assets, $2.29 billion in total liabilities and a $964.51 million
total stockholders' deficit.
* * *
As reported by the TCR on June 17, 2013, Moody's Investors Service
downgraded Quicksilver Resources Inc.'s Corporate Family Rating to
Caa1 from B3. "This rating action is reflective of Quicksilver's
revised recapitalization plan," stated Michael Somogyi, Moody's
Vice President and Senior Analyst. "Quicksilver's inability to
complete its recapitalization plan as proposed elevates near-term
refinancing risk given its weak operating profile and raises
concerns over the sustainability of the company's capital
structure."
In the June 27, 2013, edition of the TCR, Standard & Poor's
Ratings Services said it lowered its corporate credit rating on
Fort Worth, Texas-based Quicksilver Resources Inc. to 'CCC+' from
'B-'. "We lowered our corporate credit rating on Quicksilver
Resources because we do not believe the company will be able to
remedy its unsustainable leverage," said Standard & Poor's credit
analyst Carin Dehne-Kiley.
RADIOSHACK CORP: Tom Plaskett Retires From Board of Directors
-------------------------------------------------------------
Thomas G. Plaskett provided notice to RadioShack Corporation of
his retirement from the Board of Directors, effective Nov. 14,
2013. Mr. Plaskett had served on the RadioShack Board since 1986,
and was a member of the Audit and Compliance Committee as well as
the Corporate Governance Committee. Mr. Plaskett confirmed that
his retirement was for personal reasons and was not due to any
disagreement with the Company on any matter relating to the
Company's operations, policies or practices.
2013 Supplementary Incentive Plan
On Nov. 14, 2013, based on the recommendation of the Management
Development and Compensation Committee of RadioShack, the Board of
Directors of RadioShack approved the terms and conditions of the
supplementary incentive compensation plan for executive officers
of the Company for 2013.
Under the 2013 Supplementary Plan, a cash bonus may be paid in an
amount up to 50 percent of each executive officers 2013 annual
bonus target if RadioShack achieves certain financial objectives.
One-half of the payout under the 2013 Supplementary Plan is based
on RadioShack's achievement of an EBITDA target established by the
Committee. The other half is based on the Committee's assessment
of RadioShack's progress toward achievement of its strategic
initiatives. The payout, if any, of the 2013 Supplementary Plan
bonus would occur in February of 2014.
Change in Fiscal Year
The Board of Directors of RadioShack Corporation approved a
resolution to change RadioShack's fiscal year. Prior to this
resolution, RadioShack's fiscal year ended December 31. The
Company's new fiscal year end is the Saturday closest to January
31. The new fiscal year is comprised of either 52 or 53 weeks.
In a 52-week fiscal year, each of the Company's quarterly periods
will be comprised of 13 weeks, consisting of two four week periods
and one five week period. In a 53-week fiscal year, three of the
Company's quarterly periods will be comprised of 13 weeks and one
quarter will be comprised of 14 weeks.
This change is effective Jan. 1, 2014. The Company will report on
a transition period from January 1 to Feb. 1, 2014. The new
fiscal year will commence on Feb. 2, 2014. The Company's first
quarter for 2014 will end on May 3, 2014. No separate transition
report is required for this change. In accordance with Securities
and Exchange Commission rules, information for the transition
period will be included in RadioShack's Form 10-Q for the quarter
ending May 3, 2014.
About Radioshack Corporation
RadioShack (NYSE: RSH) -- -- http://www.radioshackcorporation.com
-- is a national retailer of innovative mobile technology products
and services, as well as products related to personal and home
technology and power supply needs. RadioShack's retail network
includes more than 4,300 company-operated stores in the United
States, 270 company-operated stores in Mexico, and approximately
1,000 dealer and other outlets worldwide.
Radioshack disclosed a net loss of $139.4 million in 2012, as
compared with net income of $72.2 million in 2011. As of June 30,
2013, the Company had $1.85 billion in total assets, $1.34 billion
in total liabilities and $506.6 million in total stockholders'
equity.
* * *
As reported by the TCR on Nov. 23, 2012, Standard & Poor's Ratings
Services lowered its corporate credit and senior unsecured debt
ratings on Fort Worth, Texas-based RadioShack Corp. to 'CCC+' from
'B-'. "The downgrade of RadioShack reflects our view that it will
be very difficult for the company to improve its gross margin in
the fourth quarter of this year, given the highly promotional
nature of year-end holiday retailing in the wireless and consumer
electronic categories," said Standard & Poor's credit analyst
Jayne Ross.
In the July 27, 2012, edition of the TCR, Fitch Ratings has
downgraded its long-term Issuer Default Rating (IDR) for
RadioShack Corporation to 'CCC' from 'B-'. The downgrade reflects
the significant decline in RadioShack's profitability, which has
become progressively more pronounced over the past four quarters.
As reported by the TCR on March 6, 2013, Moody's Investors Service
downgraded RadioShack Corporation's corporate family rating to
Caa1 from B3 and probability of default rating to Caa1-PD from B3-
PD. RadioShack's Caa1 Corporate Family Rating reflects Moody's
opinion that the overall business strategy of the company to
reverse the decline in profitability has not gained any traction.
RESIDENTIAL CAPITAL: Objection to La Casse $37MM Claims Sustained
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Judge Martin Glenn issued a memorandum opinion and order dated
Nov. 7, 2013, sustaining Residential Capital and its affiliates'
objection to Claim Nos. 3852, 3856 and 3860 filed by Thomas La
Casse after finding that the documentation attached to the proofs
of claim failed to indicate any Debtor liability.
The Debtors objected to, and asked the Court to disallow, Claim
No. 3852 against Debtor Homecomings Financial, LLC, and Claim Nos.
3856 and 3860 against Debtor Residential Funding Company, LLC,
each filed by Thomas James LaCasse.
The Debtors assert that the proofs of claim filed by the Claimant,
which allege $5,289,000 against Homecomings, and $31,789,000 in
aggregate against RFC, should be disallowed and expunged pursuant
to Section 502(b) of the Bankruptcy Code because the Claimant
fails to state a claim against any of the Debtors under applicable
law.
The Proofs of Claim are based on claims arising under two
foreclosure-related actions filed in Connecticut state court.
With respect to one of those actions, no Debtor is named as a
party, nor was a Debtor involved in the underlying foreclosure,
according to Richard E. Briansky, Esq. --
rbriansky@PrinceLobel.com -- at Prince Lobel Tye LLP, in Boston,
Massachusetts.
With respect to the second action, Mr. Briansky says, the Claimant
fails to articulate a valid legal basis that would give rise
liability on the part of any Debtor. Further, the Claimant
provides no support for the tens of millions of dollars in claims
asserted against the Debtors, beyond perfunctory lists of alleged
damages, Mr. Briansky adds. The Proofs of Claim are without merit
and fail to state a claim against the Debtors, Mr. Briansky
asserts.
The Debtors are also represented by Gary S. Lee, Esq., Norman S.
Rosenbaum, Esq., Melissa A. Hager, Esq., and Erica J. Richards,
Esq., at Morrison & Foerster LLP, in New York.
About Residential Capital
Residential Capital LLC, the unprofitable mortgage subsidiary of
Ally Financial Inc., filed for bankruptcy protection (Bankr.
S.D.N.Y. Lead Case No. 12-12020) on May 14, 2012.
Neither Ally Financial nor Ally Bank is included in the bankruptcy
filings.
ResCap, one of the country's largest mortgage originators and
servicers, was sent to Chapter 11 with 50 subsidiaries amid
"continuing industry challenges, rising litigation costs and
claims, and regulatory uncertainty," according to a company
statement.
ResCap disclosed $15.68 billion in assets and $15.28 billion in
liabilities at March 31, 2012.
Centerview Partners LLC and FTI Consulting are acting as financial
advisers to ResCap. Morrison & Foerster LLP is acting as legal
adviser to ResCap. Curtis, Mallet-Prevost, Colt & Mosle LLP is
the conflicts counsel. Rubenstein Associates, Inc., is the public
relations consultants to the Company in the Chapter 11 case.
Morrison Cohen LLP is advising ResCap's independent directors.
Kurtzman Carson Consultants LLP is the claims and notice agent.
Ray C. Schrock, Esq., at Kirkland & Ellis LLP, in New York, serves
as counsel to Ally Financial.
ResCap sold most of the businesses for a combined $4.5 billion.
The Bankruptcy Court in November 2012 approved ResCap's sale of
its mortgage servicing and origination platform assets to Ocwen
Loan Servicing, LLC and Walter Investment Management Corporation
for $3 billion; and its portfolio of roughly 50,000 whole loans to
Berkshire Hathaway for $1.5 billion.
Bankruptcy Creditors' Service, Inc., publishes RESIDENTIAL CAPITAL
BANKRUPTCY NEWS. The newsletter tracks the Chapter 11 proceeding
undertaken by affiliates of Residential Capital LLC and its
affiliates (http://bankrupt.com/newsstand/or 215/945-7000).
RESIDENTIAL CAPITAL: Split in Phase 1 of Trial vs. Noteholders
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Judge Martin Glenn issued on Nov. 15, 2013, a memorandum opinion
and findings of fact and conclusions of law on the issues
discussed during the first phase of the trial in the dispute
between Residential Capital LLC and the junior secured
noteholders.
According to Judge Glenn, the results of the Phase I trial can be
viewed as a split decision -- some issues have been resolved in
favor of the Plaintiffs and some in favor of the Defendants.
Subject to the outcome of the Phase II trial, Judge Glenn
concluded that the JSNs' claim should not be reduced for unmatured
original issue discount ("OID"); the JSNs have failed to establish
that they are entitled to recover an adequate protection claim;
the JSNs have liens on certain contested collateral, including
certain intangible assets, but the JSNs do not have liens on the
full extent of the collateral claimed; the Plaintiffs have failed
to establish that the JSNs received avoidable preferences during
the preference period; and the JSNs are undersecured and not
entitled to postpetition interest and
fees.
Judge Glenn concluded that, subject to the results of the Phase II
trial, the JSNs are undersecured by approximately $318 million.
To receive interest in full, Judge Glenn said noteholders needed
to show a collateral value of $2.56 billion, Bill Rochelle, the
bankruptcy columnist for Bloomberg News.
Judge Glenn, according to Mr. Rochelle, concluded by saying the
noteholders pursued a strategy throughout bankruptcy where "they
contest everything and concede nothing, even when the court has
questioned whether they are acting in good faith." The judge said
the junior lenders "stand virtually alone in this case in failing
to reach a consensual agreement to resolve their issues."
The result, he said, has been "protracted proceedings" that
reduced funds available to satisfy creditor claims. "That is
unfortunate," Judge Glenn said, Mr. Rochelle cited.
Mr. Rochelle also noted that Judge Glenn ruled on several issues
in favor of the noteholders. He said that $270 million they
received before bankruptcy was not a preference to pay back. The
noteholders won because ResCap failed to prove what the collateral
was worth at the critical date before bankruptcy. The judge also
said the noteholders aren't required to contribute $143 million as
their share of professional costs. Although the bankruptcy isn't
over, Judge Glenn said it appeared that ResCap has enough
unencumbered cash to pay expenses without taking money from the
noteholders. He said the noteholders' claim can't be reduced for
what ResCap claimed to be so-called unmatured interest.
Judge Glenn found against the noteholders on other issues, Mr.
Rochelle said. Significantly, he said they aren't entitled to
$515 million in so-called adequate protection payments because
they didn't present credible evidence about the value of the
collateral at the outset. Rather than being diminished during the
case, Judge Glenn said the collateral value was enhanced because
ResCap initially was insolvent and the collateral was unsaleable,
Mr. Rochelle added. Consequently, the collateral didn't decrease
in value during bankruptcy, it increased. They would have been
entitled to adequate protection were there a decrease.
Judge Glenn also ruled that the noteholders have more collateral
than ResCap admitted, Mr. Rochelle added.
A full-text copy of Judge Glenn's 117-page decision dated
Nov. 15, 2013, is available for free at:
http://bankrupt.com/misc/RESCAPmemo1116.pdf
Appearances were made by:
* Gary S. Lee, Esq., Jamie A. Levitt, Esq., and Stefan W.
Engelhardt, Esq., at MORRISON & FOERSTER LLP, in New York,
for the Debtors
* Kenneth H. Eckstein, Esq., and Gregory A. Horowitz, Esq., at
KRAMER LEVIN NAFTALIS & FRANKEL LLP, in New York, for the
Official Committee of Unsecured Creditors
* Robert J. Feinstein, Esq., and John A. Morris, Esq., at
PACHULSKI STANG ZIEHL & JONES, in New York, as conflicts
counsel to Official Creditors' Committee
* J. Christopher Shore, Esq., Douglas P. Baumstein, Esq., and
Dwight A. Healy, Esq., at WHITE & CASE LLP, in New York, for
the Ad Hoc Group of Junior Secured Noteholders
* David M. Zensky, Esq., and Deborah Newman, Esq., at AKIN
GUMP STRAUSS HAUER & FELD LLP, in New York, as Special
Counsel to UMB Bank, N.A.
* David M. Schlecker, Esq., at REED SMITH LLP, in New York, as
attorneys for Wells Fargo as Collateral Agent
About Residential Capital
Residential Capital LLC, the unprofitable mortgage subsidiary of
Ally Financial Inc., filed for bankruptcy protection (Bankr.
S.D.N.Y. Lead Case No. 12-12020) on May 14, 2012.
Neither Ally Financial nor Ally Bank is included in the bankruptcy
filings.
ResCap, one of the country's largest mortgage originators and
servicers, was sent to Chapter 11 with 50 subsidiaries amid
"continuing industry challenges, rising litigation costs and
claims, and regulatory uncertainty," according to a company
statement.
ResCap disclosed $15.68 billion in assets and $15.28 billion in
liabilities at March 31, 2012.
Centerview Partners LLC and FTI Consulting are acting as financial
advisers to ResCap. Morrison & Foerster LLP is acting as legal
adviser to ResCap. Curtis, Mallet-Prevost, Colt & Mosle LLP is
the conflicts counsel. Rubenstein Associates, Inc., is the public
relations consultants to the Company in the Chapter 11 case.
Morrison Cohen LLP is advising ResCap's independent directors.
Kurtzman Carson Consultants LLP is the claims and notice agent.
Ray C. Schrock, Esq., at Kirkland & Ellis LLP, in New York, serves
as counsel to Ally Financial.
ResCap sold most of the businesses for a combined $4.5 billion.
The Bankruptcy Court in November 2012 approved ResCap's sale of
its mortgage servicing and origination platform assets to Ocwen
Loan Servicing, LLC and Walter Investment Management Corporation
for $3 billion; and its portfolio of roughly 50,000 whole loans to
Berkshire Hathaway for $1.5 billion.
Bankruptcy Creditors' Service, Inc., publishes RESIDENTIAL CAPITAL
BANKRUPTCY NEWS. The newsletter tracks the Chapter 11 proceeding
undertaken by affiliates of Residential Capital LLC and its
affiliates (http://bankrupt.com/newsstand/or 215/945-7000).
RESIDENTIAL CAPITAL: Noteholders Appeal Approval of FGIC Deal
-------------------------------------------------------------
The Ad Hoc Group of Junior Secured Noteholders appeals to the
United States District Court for the Southern District of New York
from the Bankruptcy Court's approval of the settlement among
Residential Capital LLC and its affiliates and the Financial
Guaranty Insurance Company, The Bank of New York Mellon, The Bank
of New York Mellon Trust Company, N.A., Law Debenture Trust
Company of New York, U.S. Bank National Association and Wells
Fargo Bank, N.A., each solely in their respective capacities as
trustees, indenture trustees or separate trustees, and certain
Institutional Investors.
Pursuant to the Settlement Agreement, and subject to the
occurrence of the effective date of the Debtors' Chapter 11 Plan,
FGIC Claims will be allowed as general unsecured claims against
each of Residential Capital, LLC, GMAC Mortgage, LLC and
Residential Funding Company, LLC, in the aggregate amount of
$596.5 million.
The Ad Hoc Group is represented by J. Christopher Shore, Esq., and
Harrison L. Denman, Esq., at White & Case LLP, in New York; and
Gerard Uzzi, Esq., at Milbank, Tweed, Hadley & McCloy LLP, in New
York.
About Residential Capital
Residential Capital LLC, the unprofitable mortgage subsidiary of
Ally Financial Inc., filed for bankruptcy protection (Bankr.
S.D.N.Y. Lead Case No. 12-12020) on May 14, 2012.
Neither Ally Financial nor Ally Bank is included in the bankruptcy
filings.
ResCap, one of the country's largest mortgage originators and
servicers, was sent to Chapter 11 with 50 subsidiaries amid
"continuing industry challenges, rising litigation costs and
claims, and regulatory uncertainty," according to a company
statement.
ResCap disclosed $15.68 billion in assets and $15.28 billion in
liabilities at March 31, 2012.
Centerview Partners LLC and FTI Consulting are acting as financial
advisers to ResCap. Morrison & Foerster LLP is acting as legal
adviser to ResCap. Curtis, Mallet-Prevost, Colt & Mosle LLP is
the conflicts counsel. Rubenstein Associates, Inc., is the public
relations consultants to the Company in the Chapter 11 case.
Morrison Cohen LLP is advising ResCap's independent directors.
Kurtzman Carson Consultants LLP is the claims and notice agent.
Ray C. Schrock, Esq., at Kirkland & Ellis LLP, in New York, serves
as counsel to Ally Financial.
ResCap sold most of the businesses for a combined $4.5 billion.
The Bankruptcy Court in November 2012 approved ResCap's sale of
its mortgage servicing and origination platform assets to Ocwen
Loan Servicing, LLC and Walter Investment Management Corporation
for $3 billion; and its portfolio of roughly 50,000 whole loans to
Berkshire Hathaway for $1.5 billion.
Bankruptcy Creditors' Service, Inc., publishes RESIDENTIAL CAPITAL
BANKRUPTCY NEWS. The newsletter tracks the Chapter 11 proceeding
undertaken by affiliates of Residential Capital LLC and its
affiliates (http://bankrupt.com/newsstand/or 215/945-7000).
RICEBRAN TECHNOLOGIES: To Effect a 1-for-200 Reverse Stock Split
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The Board of Directors of RiceBran Technologies authorized a
reverse stock split at a ratio of 1-for-200. At the Annual
Meeting of Stockholders held on June 18, 2013, stockholders of the
Company approved amendments to its articles of incorporation that
would effect a reverse split of its issued and outstanding common
stock in a ratio to be determined by the board of directors of the
Company.
Accordingly, on Nov. 14, 2013, the Company amended its Articles of
Incorporation by filing with the California Secretary of State a
Certificate of Amendment to effect a 1-for-200 reverse stock split
of its common stock and to decrease the total number of authorized
shares of its common stock on a post-reverse stock split basis, so
that the total number of shares that the Company has the authority
to issue is now 6,000,000 shares of common stock.
As a result of the reverse stock split, every 200 shares of the
Company's outstanding common stock were automatically combined
into 1 share of common stock. Stockholders will not receive
fractional shares in connection with the reverse stock split.
Stockholders otherwise entitled to fractional shares will receive
an additional share of common stock.
The reverse stock split will reduce the number of shares of the
Company's outstanding common stock from 228,421,381 shares to
approximately 1,149,890 shares. Each stockholder's percentage
ownership interest and the proportional voting power remain
unchanged after the reverse stock split, except for minor changes
and adjustments resulting from the rounding up of fractional
shares. The rights and privileges of the holders of the Company's
common stock are unaffected by the reverse stock split.
Beginning with the opening of trading on Nov. 18, 2018, the
Company's common stock will trade on the OTCQB Marketplace on a
split-adjusted basis under the symbol "RIBTD" (to designate that
it is trading on a post-reverse stock split basis). Trading will
resume under the symbol "RIBT" after 20-trading days. A new CUSIP
number (762831204) has been issued for the Company's new common
stock. The Company's transfer agent, American Stock Transfer &
Trust, is acting as exchange agent for the reverse stock split and
will send instructions to stockholders of record regarding the
exchange of their certificates for post-reverse stock split
certificates.
Two New Directors Appointed
RiceBran Technologies has appointed Robert S. Kopriva and Peter A.
Woog to the Board of Directors of RiceBran Technologies effective
upon the listing of the Company's common stock and warrants on The
Nasdaq Capital Market.
W. John Short, CEO and president of RiceBran Technologies
commented, "We are excited to have professionals of the caliber of
Bob and Peter join our Board as independent directors. Bob's
intimate knowledge of and contacts in the food, food ingredient
and meat markets both domestically and internationally bring
tremendous value to our Company. Peter's extensive experience
working with portfolio company management teams in the development
and implementation of strategic and business plans will also bring
great benefit for our management team. We welcome both of these
seasoned professionals to our Board."
Robert S. Kopriva, age 62, currently serves as co-chairman of
Rupari Foods, a Wind Point portfolio company and is a senior
advisor to the CEO of Bar-S Foods. He was the former president
and CEO of Sara Lee Foods and the former Chairman of Premium
Standard Farms. Mr. Kopriva will be a member of the Audit
Committee and the Compensation Committee. He holds a bachelors
degree in accounting from the University of Illinois and an MBA
from the Kellogg School of Management at Northwestern University.
Peter A. Woog, age 71, is a partner at Najafi Companies where he
evaluates acquisition opportunities and assists management of
acquired companies in the development and implementation of
strategic, business and financial plans. Previously, Mr. Woog
spent three decades at AT&T and became CEO and a director of Cable
Systems Holdings when CitiCorp Venture Capital acquired the
business from AT&T. He was also the former CEO of International
FiberCom and has sat on numerous public and private boards. Mr.
Woog holds a bachelors degree in mechanical engineering from
Lowell Technological Institute (University of Massachusetts-
Lowell) and a Master of Science degree in management science from
Stevens Institute of Technology.
Both Messrs. Kopriva and Woog will be compensated according to the
Company's standard compensation policies for directors.
Additional information is available for free at:
http://is.gd/bisOzr
About RiceBran
Scottsdale, Ariz.-based RiceBran Technologies, a California
corporation, is a human food ingredient and animal nutrition
company focused on the procurement, bio-refining and marketing of
numerous products derived from rice bran.
As reported in the TCR on April 15, 2013, BDO USA, LLP, in
Phoenix, Arizona, expressed substantial doubt about RiceBran
Technologies' ability to continue as a going concern. The
independent auditors noted that the Company has suffered recurring
losses from operations resulting in an accumulated deficit of
$204.4 million at Dec. 31, 2012. "Although the Company emerged
from bankruptcy in November 2010, there continues to be
substantial doubt about its ability to continue as a going
concern."
The Company's balance sheet at June 30, 2013, showed $42.55
million in total assets, $36.84 million in total liabilities and
$8.01 million in total temporary equity, and a $2.29 million total
deficit attributable to the Company's shareholders.
RIVER CREE: S&P Assigns 'B+' CCR & Rates C$200MM Notes 'B-'
-----------------------------------------------------------
Standard & Poor's Ratings Services said it assigned its 'B+' long-
term corporate credit rating to Alberta-based River Cree
Enterprises L.P. The outlook is stable.
At the same time, Standard & Poor's assigned its 'B-' issue-level
rating to the issuer's proposed C$200 million second-lien notes.
"The ratings on River Cree reflect what we view as the narrow
diversity of the company's operations, its solid cash flow owing
to the attractive regulatory environment and its good market
position, and its aggressive debt leverage," said Standard &
Poor's credit analyst Donald Marleau.
River Cree is undertaking a new financing to enable its 59% owner,
the Enoch Nation Business Trust, to acquire the 41% owned by
current operator Paragon Gaming Corp. S&P's rating on River
Cree's C$200 million second-lien notes is two notches below its
long-term corporate credit rating on the company, reflecting the
large amount of priority debt that ranks ahead of the notes in a
default scenario.
S&P views River Cree's business risk profile as "weak," based on
its reliance on one casino resort operation on the Enoch Cree
Nation Reserve in Alberta. This limited scope is offset by robust
cash flow owing to the supportive regulatory environment for
native gaming in the province, as well as River Cree's attractive
market position in Edmonton, Alta. River Cree's credit profile
benefits from the First Nations Development Fund, which returns a
meaningful portion of the government's casino win to the casino to
support nongaming expenditures, including debt service.
The River Cree casino resort is situated just outside Edmonton on
the Enoch Cree Nation Reserve, providing it with good access to
the city's population and tourist facilities, such as the West
Edmonton Mall. The Edmonton gaming market is competitive, with
eight casinos operating in a city of more than 1 million, and is
exposed to the inherent economic cyclicality associated with
Alberta's oil-based economy. River Cree is the market leader,
taking the largest share of coin-in and table revenue and
supported by comparatively high wins per day.
The stable outlook incorporates S&P's expectation that River Cree
will maintain an aggressive financial risk profile, with debt to
EBITDA of about 4.5x-5.0x through 2014. Although unlikely because
of its very narrow operating diversity, S&P could raise the rating
on River Cree if the issuer preserves its key business attributes
and reduces leverage sustainably to below 3.5x, which would be
consistent with a significant financial risk profile. S&P could
lower the rating if River Cree's leverage increases above 5x with
weak prospects for improvement because of deteriorating
profitability, or if increased capital expenditures and higher
distributions contribute to negative discretionary cash flow.
SB PARTNERS: Incurs $1.1 Million Net Loss in 2012
-------------------------------------------------
SB Partners filed with the U.S. Securities and Exchange Commission
its 2012 annual report on Form 10-K on Nov. 15, 2013. The late
filed Form 10-K disclosed a net loss of $1.10 million on $2.46
million of total revenues for the year ended Dec. 31, 2012, as
compared with a net loss of $1.02 million on $2.50 million of
total revenues during the prior year.
The Company's balance sheet at Dec. 31, 2012, showed $17.74
million in total assets, $21.53 million in total liabilities and a
$3.79 million total partners' deficit.
As reported by the TCR on Nov. 21, 2013, SB Partners has a 30
percent non-controlling interest in Sentinel Omaha, LLC, an
affiliate of the Company's general partner. The investment in
Omaha is accounted for at fair value. Earlier this year, the
controller for Omaha informed the Company that, due to open
issues, Omaha's auditors would be unable to complete their
audit and issue an audit opinion for calendar year 2012 until late
2013.
"Because the investment in Omaha constitutes a significant portion
of the assets of the Company, Company's auditors are required to
review both the financial statements of Omaha and the related
workpapers prepared by Omaha's auditors after the audit work of
Omaha is completed. Until the Company's auditors perform their
review of the Omaha audit, the Company's auditors cannot issue an
audited opinion on the Company's financial statements for the
period ending Dec. 31, 2012. As a result, the Company was not
able to file its form 10-K for the period ending Dec. 31, 2012,
timely and filed form 10-K NT," the Report stated.
A copy of the Form 10-K is available for free at:
http://is.gd/E6Vadf
About SB Partners
Milford, Conn.-based SB Partners is a New York limited partnership
engaged in acquiring, operating and holding for investment a
varying portfolio of real estate interests. As of June 30,
2010, the partnership owns an industrial flex property in Maple
Grove, Minnesota and warehouse distribution centers in Lino Lakes,
Minnesota and Naperville, Illinois.
SCOTTSDALE CINEMA: Voluntary Chapter 11 Case Summary
----------------------------------------------------
Debtor: Scottsdale Cinema Group, Inc.
aka Ultra Star Cinemas
9090 E. Indian Bend Road
Scottsdale, AZ 85250
Case No.: 13-20325
Chapter 11 Petition Date: November 22, 2013
Court: United States Bankruptcy Court
District of Arizona (Phoenix)
Judge: Hon. Sarah Sharer Curley
Debtor's Counsel: Sean P. O'Brien, Esq.
GUST ROSENFELD P.L.C.
One East Washington, Suite 1600
Phoenix, AZ 85004-2553
Tel: 602-257-7460
Fax: 602-254-4878
Email: spobrien@gustlaw.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Alan Grossberg, president.
The Debtor did not file a list of its largest unsecured creditors
when it filed the petition.
SECUREALERT INC: Sapinda Asia Held 46.2% Stake at Nov. 5
--------------------------------------------------------
In an amended Schedule 13D filed with the U.S. Securities and
Exchange Commission, Sapinda Asia Limited and Lars Windhorst
disclosed that as of Nov. 5, 2013, they beneficially owned
4,534,168 shares of common stock of SecureAlert, Inc.,
representing 46.2 percent of the shares outstanding. A copy of
the regulatory filing is available at http://is.gd/jDePLc
About SecureAlert
Sandy, Utah-based SecureAlert, Inc., markets and deploys offender
management programs, combining patented GPS tracking technologies,
fulltime 24/7/365 intervention-based monitoring capabilities and
case management services.
Hansen, Barnett & Maxwell, P.C., in Salt Lake City, Utah, issued a
"going concern" qualification on the consolidated financial
statements for the fiscal year ended Sept. 30, 2012, citing
losses, negative cash flows from operating activities, notes
payable in default and an accumulated deficit, which conditions
raise substantial doubt about its ability to continue as a going
concern.
The Company's balance sheet at June 30, 2013, showed
$27.63 million in total assets, $9.73 million in total
liabilities, and $17.90 million in total equity.
SECUREALERT INC: Conrent Invest Held 5.7% Stake at Oct. 31
----------------------------------------------------------
In a Schedule 13D filed with the U.S. Securities and Exchange
Commission, Conrent Invest S.A. acting in the name and on behalf
of its compartment "Safety", disclosed that as of Oct. 30, 2013,
it beneficially owned 556,648 shares of common stock of
Secure Alert Inc. representing 5.7 percent of the shares
outstanding. A copy of the regulatory filing is available for
free at http://is.gd/sOCS7J
About SecureAlert
Sandy, Utah-based SecureAlert, Inc., markets and deploys offender
management programs, combining patented GPS tracking technologies,
fulltime 24/7/365 intervention-based monitoring capabilities and
case management services.
Hansen, Barnett & Maxwell, P.C., in Salt Lake City, Utah, issued a
"going concern" qualification on the consolidated financial
statements for the fiscal year ended Sept. 30, 2012, citing
losses, negative cash flows from operating activities, notes
payable in default and an accumulated deficit, which conditions
raise substantial doubt about its ability to continue as a going
concern.
The Company's balance sheet at June 30, 2013, showed
$27.63 million in total assets, $9.73 million in total
liabilities, and $17.90 million in total equity.
SECUREALERT INC: Borinquen Holds Less Than 1% of Common Shares
--------------------------------------------------------------
In an amended Schedule 13G filed with the U.S. Securities and
Exchange Commission, Borinquen Container Corporation and Hector L.
Gonzalez disclosed that as of Sept. 30, 2013, they beneficially
owned 62,046 shares of common stock of SecureAlert, Inc.,
representing .06 percent based on 9,805,503 shares reported as
outstanding on Sept. 30, 2013, in the Company's Current Report on
Form 8-K filed Oct. 30, 2013. A copy of the regulatory filing is
available for free at http://is.gd/9KEZm9
About SecureAlert
Sandy, Utah-based SecureAlert, Inc., markets and deploys offender
management programs, combining patented GPS tracking technologies,
fulltime 24/7/365 intervention-based monitoring capabilities and
case management services.
Hansen, Barnett & Maxwell, P.C., in Salt Lake City, Utah, issued a
"going concern" qualification on the consolidated financial
statements for the fiscal year ended Sept. 30, 2012, citing
losses, negative cash flows from operating activities, notes
payable in default and an accumulated deficit, which conditions
raise substantial doubt about its ability to continue as a going
concern.
The Company's balance sheet at June 30, 2013, showed
$27.63 million in total assets, $9.73 million in total
liabilities, and $17.90 million in total equity.
SELECT TREE: May Employ Rita Pope and Realty USA.com as Brokers
---------------------------------------------------------------
The Bankruptcy Court for the Western District of New York
authorized Select Tree Farms, Inc., to employ Rita Pope and Realty
USA.Com as exclusive brokers to sell a single family residential
property located at 6701 Chestnut Ridge Road, Orchard Park, New
York.
By order entered Oct. 18, 2013, the Court authorized the broker's
employment as to 6701 Chestnut Ridge Road, New York.
The Brokers' employment contract provides for a real estate
commission of the greater of $3,400 or 5 percent of the sale price
plus $149. Under the contract, the Brokers may split the
commission with another broker representing the buyer. The
duration of the contract is from Oct. 13, 2013, to April 13, 2014.
In a separate order, the Court authorized the Debtor to sell
another one-family residential real property owned by George A.
Schichtel located at 6728 Chestnut Ridge Road, Orchard Park, New
York through Rita Pope and Realty USA.Com.
The additional property is not the residence of Mr. Schichtel but
is a rental property. Mr. Schichtel intends to sell the
additional property which is encumbered by a mortgage of HSBC Bank
at a price sufficient to pay the mortgage debt owed to HSBC Bank
in full.
To the best of Mr. Schichtel's knowledge, the Brokers are a
"disinterested person" as that term is defined in Section 101(14)
of the Bankruptcy Code.
About Select Tree Farms, Inc.
Select Tree Farms, Inc., filed a Chapter 11 petition (Bankr.
W.D.N.Y. Case No. 12-10669) on March 7, 2012. Select Tree Farms
scheduled $11,450,989 in assets and $5,959,983 in liabilities.
The petition was signed by George A. Schichtel, president.
The Debtor's owner, George A. Schichtel and Debra G. Schichtel,
filed for Chapter 11 bankruptcy on the same day (Bankr. W.D.N.Y.
Case No. 12-10670). Ms. Schichtel suffered a stroke around
October 2012 and became comatose and was intubated. She passed
away Nov. 14, 2012.
Judge Carl L. Bucki presides over the case. William F. Savino,
Esq., and Beth Ann Bivona, Esq., at Damon Morey LLP, serve as the
Debtors' counsel. NextPoint LLC serves as the Debtors' financial
advisor.
Garry M. Graber, Esq., and Steven W. Wells, Esq., at Hodgson Russ
LLP, represent Evans Bank, N.A., the primary secured creditor.
SEVEN ARTS: Incurs $1.6 Million Net Loss in Sept. 30 Quarter
------------------------------------------------------------
Seven Arts Entertainment Inc. filed with the U.S. Securities and
Exchange Commission its quarterly report on Form 10-Q disclosing a
net loss of $1.62 million on $115,735 of total revenue for the
three months ended Sept. 30, 2013, as compared with a net loss of
$1.35 million on $925,633 of total revenue for the same period
during the prior year.
As of Sept. 30, 2013, the Company had $15.58 million in total
assets, $23.93 million in total liabilities and a $8.35 million
total shareholders' deficit.
Due to staffing changes and reductions, the Company has
encountered a delay in assembling the information, in particular
the financial statements, required to be included in the Quarterly
Report to be included in its Form 10-Q for the quarter ended
Sept. 30, 2013.
A copy of the Form 10-Q is available for free at:
http://is.gd/xvQkGs
About Seven Arts
Los Angeles-based Seven Arts Entertainment, Inc. (OTC QB: SAPX)
was founded in 2002 as an independent motion picture production
and distribution company engaged in the development, acquisition,
financing, production and licensing of theatrical motion pictures
for exhibition in domestic (i.e., the United States and Canada)
and foreign theatrical markets, and for subsequent worldwide
release in other forms of media, including home video and pay and
free television.
The Company reported a net loss of $22.4 million on $1.5 million
of total revenue for the fiscal year ended June 30, 2013, compared
with a net loss of $11.2 million on $4.1 million of total revenue
for the fiscal year ended June 30, 2012.
The Hall Group, CPAs, in Dallas, Texas, expressed substantial
doubt about the Company's ability to continue as a going concern
following the financial results for the year ended June 30, 2013,
citing the Company's recurring losses from operations and net
capital deficiency.
SIERRA NEGRA: Court Confirms Plan of Reorganization
---------------------------------------------------
The U.S. Bankruptcy Court for the District of Nevada entered on
Nov. 12, 2013, an order confirming Sierra Negra Ranch, LLC's Third
Amended Plan of Reorganization as Modified.
As reported in the TCR on Aug. 22, 2013, according to the Third
Amended Disclosure Statement, the Plan contemplates the full
payment of all Allowed Claims and the amount to cure the
Infrastructure Agreement with Global Water Resources, Inc., from
the revenue generated by the farming leases on the Real Property
combined with a potential sale of a portion of the Real Property,
along with capital raised through the Shareholders' Rights
Offering of $5,807,500 of Series A Preferred Shares of
Limited-Liability Company Interest.
A copy of the Debtor's Third Amended Disclosure Statement as
Modified to reflect an incorrect statutory reference and to
reflect that Barry Becker and related entities are prepared to
backstop the Cure Amount due Global Water Resources, Inc., as
determined by the Court, is available at:
http://bankrupt.com/misc/sierranegra.doc387.pdf
About Sierra Negra Ranch
Las Vegas, Nevada-based Sierra Negra Ranch, LLC, is a limited
liability company organized in November 2004 to purchase an
aggregate of approximately 2,757.5 acres of undeveloped land in
the Tonopah area of incorporated Maricopa County, west of Phoenix,
Arizona. It filed a bare-bones Chapter 11 petition (Bankr. D.
Nev. Case No. 12-19649) in Las Vegas on Aug. 21, 2012. Candace C.
Clark, Esq., Gerald M. Gordon, Esq., Kirk D. Homeyer, Esq., and
Mark M. Weisenmiller, Esq., at Gordon Silver, in Las Vegas, Nev.,
represent the Debtor as counsel.
In its amended schedules, the Debtor disclosed $26,197,986 in
total assets and $4,801,931 in total liabilities. The Debtor is
"Single Asset Real Estate" as defined in 11 U.S.C. Sec 101(51B)
and its asset is located in Maricopa County, Arizona.
SILENT W PROPERTIES: Case Summary & 4 Unsecured Creditors
---------------------------------------------------------
Debtor: Silent W Properties
762 Shoreline Drive
Aurora, IL 60504
Case No.: 13-45703
Chapter 11 Petition Date: November 26, 2013
Court: United States Bankruptcy Court
Northern District of Illinois (Chicago)
Judge: Hon. Eugene R. Wedoff
Debtor's Counsel: Douglas C. Tibble, Esq.
BROOKS ADAMS AND TARULIS
101 N. Washington Street
Naperville, IL 60540
Tel: 630 355-2101
Fax: 630-355-7843
Email: dtibble@napervillelaw.com
Estimated Assets: not indicated
Estimated Liabilities: $1 million to $10 million
The petition was signed by Mark Wrasman, managing member.
A list of the Debtor's four largest unsecured creditors is
available for free at http://bankrupt.com/misc/ilnb13-45703.pdf
SONGA OFFSHORE: Unveils Results of Share & Convertible Bond Issue
-----------------------------------------------------------------
Reference is made to the announcement made by Songa Offshore SE on
November 25, 2013, in which the Company proposed a comprehensive
refinancing by way of raising up to USD425 million in new capital
through a combination of (i) a fully guaranteed private placement
with gross proceeds in the amount of approximately USD250 million
(NOK1,525 million) and a contemplated subsequent repair offering
with expected gross proceeds of approximately USD25 million
(NOK152.5 million) and (ii) issue of a subordinated convertible
bond through a private placement of bonds with gross proceeds in
the amount of USD150 million.
The books are now closed and subscriptions have been received for
all 610 million new shares in the Private Placement at a
subscription price of NOK2.50 per share, corresponding to gross
proceeds of approximately USD250 million (NOK1,525 million).
Subscriptions for bonds corresponding to the full amount of
USD150 million have been received in the Convertible Bond Issue.
The Convertible Bond Issue was closed with a loan coupon of 4.00%.
Conditional allocations will be made and conditional allocation
letters distributed to the applicants on or about November 27,
2013.
The Private Placement and the Convertible Bond Issue are mutually
conditional and subject to the approvals by an extraordinary
general meeting of the Company which will be proposed in the
notice to the extraordinary general meeting which is expected to
be held on or about December 18, 2013, and are also contingent
upon (a) amendments to the existing CAT-D charter contracts, (b)
waivers and amendment agreements with the Company's bondholders as
well as (c) amended agreements with the Company's syndicated bank
facility.
Subject to the satisfaction of such conditions, settlement of the
Private Placement and the Convertible Bond Issue is expected to
take place on or about December 23, 2013. The shares issued in
the Private Placement will be settled by delivery to a separate
ISIN pending approval and publication of a listing prospectus.
Pending such publication, the new shares will not be tradable on
Oslo Bors. Following publication of the prospectus, the new
shares will be transferred to the Company's ordinary ISIN and thus
automatically listed and tradable on Oslo Bors.
Following completion of the Private Placement, the Company intends
to carry out the Subsequent Offering of up to 61 million shares at
a subscription price of NOK2.50, resulting in gross proceeds of up
to approximately USD25 million (NOK152.5 million), in which the
Company expects to grant shareholders holding less than 110,000
shares as of close of trading November 22, 2013 (and who were not
allocated shares in the Private Placement) non-tradable
subscription rights based on their shareholding as of that date
(as registered in the VPS on November 27, 2013). Shareholders
allocated shares in the Private Placement will not receive
subscription rights, but subscription without subscription rights
and oversubscription will be allowed. Shareholders holding shares
through a nominee account may risk not receiving subscription
rights.
Songa Offshore SE is a Norwegian-Cypriot offshore drilling
contractor founded in 2005 with offices in Cyprus, Stavanger,
Oslo, Houston, Kuala Lumpur and Singapore.
* * *
As reported by the Troubled Company Reporter-Europe on Oct. 28,
2013, Moody's Investors Service downgraded Songa Offshore SE's
corporate family rating (CFR) to Caa1 from B3 and probability of
default rating (PDR) to Caa1-PD from B3. The outlook is stable.
SOTERA DEFENSE: S&P Cuts CCR to 'CCC' on Covenant Violation
-----------------------------------------------------------
Standard & Poor's Ratings Services lowered its corporate credit
rating on Sotera Defense Solutions Inc. to 'CCC' from 'CCC+'. The
outlook is negative.
At the same time, S&P lowered its issue-level rating on the
company's $243 million senior secured facilities (consisting of a
$28 million revolving credit facility due 2016 and a $215 million
term loan due 2017) to 'CCC' from 'CCC+'. The recovery rating on
this debt remains '3', indicating S&P's expectations for
meaningful (50% to 70%) recovery in the event of payment default.
The downgrade reflects S&P's view that the revenue decline in both
the Force Mobility & Modernization Services (FMMS) and Technology
& Intelligence Services (TIS) business segments would likely
continue over the next few quarters, given the government shutdown
this quarter and the ongoing federal defense budget and debt
ceiling uncertainties, significantly increasing the risk of future
covenant violations (absent an amendment to its existing credit
agreement providing additional covenant headroom). Additionally,
the company violated its net leverage covenant cushion for the
second consecutive quarter, with the financial sponsor having
provided capital infusion to cure the violation in both instances.
Despite the financial sponsor's willingness to provide equity
cures when needed, capital infusion by the financial sponsor to
cure covenant violations is prohibited over the next two quarters.
In accordance with the credit agreement, Sotera's financial
sponsor is only allowed to provide two equity contributions over a
four-quarter period (and four in total) to cure any covenant
violations. However, Sotera's financial sponsor is allowed to
provide equity infusion to repay debt such that the company meets
its covenant requirements, according to the amended credit
agreement.
The rating reflects S&P's view that Sotera has "less than
adequate" liquidity, a "highly leveraged" financial risk profile,
and is at a continued risk of covenant violations as a result of
vulnerable business performance in its FMMS business segment and
weakening TIS business segment. Sotera provides technology
solutions and services for mission-critical programs of the
Department of Defense (DoD), Intelligence Community, Homeland
Security, and other federal law enforcement agencies.
* * *
Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reports that the downgrade issued by S&P on Nov. 26 matches the
action taken in late August by Moody's Investors Service. S&P
previously downgraded in June.
Herndon, Virginia-based Sotera had revenue of $356 million in
2012, Moody's said. The company was acquired in April 2011 by Ares
Management LLC in a $300 million transaction.
SPIRE CORP: Incurs $2.2 Million Net Loss in Third Quarter
---------------------------------------------------------
Spire Corporation filed with the U.S. Securities and Exchange
Commission its quarterly report on Form 10-Q disclosing a net loss
of $2.23 million on $4.15 million of total net sales and revenues
for the three months ended Sept. 30, 2013, as compared with a net
loss of $2.28 million on $4.22 million of total net sales and
revenues for the same period a year ago.
For the nine months ended Sept. 30, 2013, the Company reported a
net loss of $6.64 million on $10.96 million of total net sales and
revenues as compared with a net loss of $740,000 on $18.32 million
of total net sales and revenues for the same period during the
prior year.
The Company's balance sheet at Sept. 30, 2013, showed $17.69
million in total assets, $16.60 million in total liabilities and
$1.08 million in total stockholders' equity.
A copy of the Form 10-Q is available for free at:
http://is.gd/SqjgEv
Form 10-Q Delayed
The Company previously entered into an Asset Purchase Agreement
with N2 Biomedical LLC pursuant to which N2 acquired substantially
all of the assets, and assumed certain of the liabilities of
Spire's biomedical business. The transaction closed on Sept. 18,
2013. The Company expects to consolidate the financial statements
of N2 into its own. As a result, the Company was unable to
complete the preparation of its financial statements for its
quarterly report on Form 10-Q for the quarterly period ended
Sept. 30, 2013, within the prescribed time period.
About Spire Corp
Bedford, Massachusetts-based Spire Corporation currently develops,
manufactures and markets customized turn-key solutions for the
solar industry, including individual pieces of manufacturing
equipment and full turn-key lines for cell and module production
and testing.
McGladrey LLP, in Boston, Massachusetts, expressed substantial
doubt about Spire Corporation's ability to continue as a going
concern. The independent auditors noted that during the year
ended Dec. 31, 2012, the Company incurred a loss from continuing
operations of $4.8 million and continuing operating cash flows
used $6.9 million in cash. In addition, the independent auditors
noted that the Company's credit agreements are due to expire on
June 29, 2013.
The Company reported a net loss of $1.9 million on total net sales
and revenues of $22.1 million in 2012, compared with a net loss of
$1.5 million on total net sales of $58.7 million in 2011.
SUMTOTAL SYSTEMS: Moody's Affirms B2 CFR & Changes Outlook to Neg
-----------------------------------------------------------------
Moody's Investors Service changed SumTotal Systems, Inc.'s ratings
outlook to negative from stable and affirmed existing ratings
including its B2 corporate family rating. The change in outlook is
driven by the company's below plan performance and concerns that
the trend will continue for an extended period.
Ratings Rationale:
Revenues, EBITDA and cash flow have declined more than expected
since closing of the dividend financing in late 2012 and raises
the concern that leverage could remain at or above 6.5x for an
extended period. Some level of decline was expected given the
company's shift from upfront license sales to a spread-over-time
subscription sales model (which reduces GAAP revenues and cash
receipts in the near term). The company's base subscription
revenues increased in the most recent quarter as a result of the
shift but not enough to offset the decline in maintenance, new
license and professional service revenues. Learning management and
talent management software customers are increasingly looking for
SaaS or subscription offerings in place of traditional license
offerings, and the shift is expected to continue. The company has
paid down debt faster than required however, and still retains a
sizeable cash position. Liquidity is good based on September 2013
cash levels, an undrawn $30 million revolver and expectations of
continued positive free cash flow.
The ratings could be downgraded if the decline in revenue, EBITDA
and cash flow does not show signs of abating, or if the leverage
is expected to remain above 6.5x for an extended period. Though
unlikely in the near term, the ratings could face upward pressure
if performance declines reverse and leverage is expected to remain
below 4.5x.
Outlook Actions:
Issuer: SumTotal Systems, Inc.
Outlook, Changed To Negative From Stable
Affirmations:
Issuer: SumTotal Systems, Inc.
Probability of Default Rating, Affirmed B2-PD
Corporate Family Rating, Affirmed B2
Senior Secured Bank Credit Facility Nov 16, 2017, Affirmed B1,
revised to LGD3, 35 % from LGD3, 34 %
Senior Secured Bank Credit Facility Nov 16, 2018, Affirmed B1,
revised to LGD3, 35 % from LGD3, 34 %
Senior Secured Bank Credit Facility May 16, 2019, Affirmed Caa1,
revised to LGD5, 88 % from LGD5, 86 %
SumTotal is a leading provider of learning management and human
capital management software. The company is based in Gainesville,
FL.
SUNRISE REAL ESTATE: Delays Form 10-Q for Third Quarter
-------------------------------------------------------
Sunrise Real Estate Group, Inc., filed with the U.S. Securities
and Exchange Commission a Notification of Late Filing on Form 12b-
25 with respect to its quarterly report on Form 10-Q for the
quarter ended Sept. 30, 2013. The Company said it will be delayed
in the filing of its 10-Q due to a delay in the preparation of its
financial statements.
About Sunrise Real Estate
Headquartered in Shanghai, the People's Republic of China, Sunrise
Real Estate Group, Inc. was initially incorporated in Texas on
Oct. 10, 1996, under the name of Parallax Entertainment, Inc.
On Dec. 12, 2003, Parallax changed its name to Sunrise Real
Estate Development Group, Inc. On April 25, 2006, Sunrise Estate
Development Group, Inc., filed Articles of Amendment with the
Texas Secretary of State, changing the name of Sunrise Real Estate
Development Group, Inc. to Sunrise Real Estate Group, Inc.,
effective from May 23, 2006.
The Company and its subsidiaries are engaged in the property
brokerage services, real estate marketing services, property
leasing services and property management services in China.
Sunrise Real Estate incurred a net loss of US$3.47 million on
US$8.52 million of net revenues for the year ended Dec. 31, 2012,
as compared with a net loss of US$1.15 million on US$8.97 million
of net revenues for the year ended Dec. 31, 2011. The Company's
balance sheet at June 30, 2013, showed $61.93 million in total
assets, $56.50 million in total liabilities and $5.42 million in
total shareholders' equity.
Finesse CPA, P.C., in Chicago, Illinois, issued a "going concern"
qualification on the consolidated financial statements for the
year ended Dec. 31, 2012. The independent auditors noted that
the Company has a working capital deficiency, accumulated deficit
from recurring net losses for the current and prior years, and
significant short-term debt obligations currently in default or
maturing in less than one year. These conditions raise
substantial doubt about the Company's ability to continue as a
going concern.
SUPERIOR PLUS: New Criteria Cues S&P Ratings on Watch
-----------------------------------------------------
Standard & Poor's Ratings Services said that it has reviewed its
ratings on the corporate industrial and utility companies that
were labeled as "under criteria observation" (UCO) after the
publishing of its revised Corporate criteria on Nov. 19. The
ratings on seven Canadian corporate entities were placed on
CreditWatch with positive implications as a result of this review,
meaning that they will likely be raised. At the same time, the
ratings on three Canadian corporate entities were placed on
CreditWatch with negative implications, meaning that they will
likely be lowered.
Over the weeks that follow, S&P' will publish individual
analytical reports on the companies identified below to resolve
these CreditWatch listings.
RATINGS LIST
Canadian Issuer Ratings Placed On Watch Due To Revised Corporate
Criteria
To From
AltaGas Ltd. BBB/Watch Neg/-- BBB/Stable/--
Calfrac Well Services Ltd. B+/Watch Pos/-- B+/Stable/--
Canadian National Railway Co. A-/Watch Pos/A-2 A-/Stable/A-2
EnerCare Inc. A-/Watch Neg/-- A-/Stable/--
Gaz Metro Inc. A-/Watch Pos/-- A-/Stable/--
Harvest Operations Corp. BB-/Watch Neg/-- BB-/Negative/--
Magna International Inc. BBB+/Watch Pos/-- BBB+/Pos./--
Superior Plus Corp. BB-/Watch Pos/-- BB-/Stable/--
Telesat Holdings Inc. B+/Watch Pos/-- B+/Stable/--
Trinidad Drilling Ltd. BB-/Watch Pos/-- BB-/Stable/--
T3 MOTION: Incurs $4.3 Million Net Loss in Third Quarter
--------------------------------------------------------
T3 Motion, Inc., filed with the U.S. Securities and Exchange
Commission its quarterly report on Form 10-Q disclosing a net loss
of $4.29 million on $726,148 of net revenues for the three months
ended Sept. 30, 2013, as compared with a net loss of $1.88 million
on $884,924 of net revenues for the same period during the prior
year.
For the nine months ended Sept. 30, 2013, the Company reported net
income of $6.38 million on $3.28 million of net revenues as
compared with a net loss of $4.98 million on $3.74 million of net
revenues for the same period a year ago.
The Company's balance sheet at Sept. 30, 2013, showed $2.50
million in total assets, $11.32 million in total liabilities and a
$8.81 million total stockholders' deficit.
A copy of the Form 10-Q is available for free at:
http://is.gd/HEu4jm
Form 10-Q Delayed
The quarterly report of T3 Motion was not filed within the
prescribed time period due to the fact that the Company was unable
to finalize its financial results without unreasonable expense or
effort. As a result, the Company was not able to solicit and
obtain the necessary review of the Form 10-Q in a timely fashion
prior to the due date of the report.
About T3 Motion
Costa Mesa, Calif.-based T3 Motion, Inc., develops and
manufactures T3 Series vehicles, which are electric three-wheel
stand-up vehicles that are directly targeted to the public safety
and private security markets.
T3 Motion reported a net loss of $21.52 million on $4.51 million
of net revenues for the year ended Dec. 31, 2012, as compared with
a net loss of $5.50 million on $5.29 million of net revenues
during the prior year.
"The Company has incurred significant operating losses and has
used substantial amounts of working capital in its operations
since its inception (March 16, 2006). Further, at March 31, 2013,
the Company had an accumulated deficit of $(76,980,775) and used
cash in operations of $(1,614,252) for the three months ended
March 31, 2013. These factors raise substantial doubt about the
Company's ability to continue as a going concern for a reasonable
period of time," according to the Company's Form 10-Q for the
period ended March 31, 2013.
TECHPRECISION CORP: Incurs $818,600 Net Loss in Fiscal Q2 2014
--------------------------------------------------------------
Techprecision Corporation filed with the U.S. Securities and
Exchange Commission its quarterly report on Form 10-Q disclosing
a net loss of $818,670 on $5.19 million of net sales for the three
months ended Sept. 30, 2013, as compared with a net loss of
$45,020 on $8.07 million of net sales for the same period a year
ago.
For the six months ended Sept. 30, 2013, the Company reported a
net loss of $2.24 million on $12.29 million of net sales as
compared with a net loss of $751,289 on $15.22 million of net
sales for the same period during the prior year.
The Company's balance sheet at Sept. 30, 2013, showed
$18.56 million in total assets, $10.37 million in total
liabilities and $8.18 million in total stockholders' equity.
"This was a challenging quarter for us, as legacy issues continued
to impact our operations, customer order mix and our financial
results," commented Len Anthony, TechPrecision's executive
chairman. "Our entire management team is working to put these
legacy issues and associated contract losses behind us. We remain
upbeat about the potential inherent opportunities in each of the
verticals we serve, and quotation activity remains high. We are
optimistic that we will eliminate the drag on earnings from
contract losses in the near term, and see more normalized
production volumes and margins as we move into calendar 2014.
Subsequent to the end of the quarter, we received an $8.1 million
purchase order for volume production of sapphire chambers for an
existing customer, and this order will help fill existing capacity
at our Ranor facility."
A copy of the Form 10-Q is available for free at:
http://is.gd/79fnf4
About TechPrecision
TechPrecision Corporation (OTC BB: TPCSE), through its wholly
owned subsidiaries, Ranor, Inc., and Wuxi Critical Mechanical
Components Co., Ltd., globally manufactures large-scale, metal
fabricated and machined precision components and equipment.
Loss from operations was $1.6 million in fiscal 2013 compared to
an operating loss of $3.4 million in fiscal 2012.
In their report on the consolidated financial statements for the
year ended march 31, 2013, KPMG LLP, in Philadelphia, Pa., said
that the Company was not in compliance with the fixed charges and
interest coverage financial covenants under their credit facility,
and the Bank has not agreed to waive the non-compliance with the
covenants. "Since the Company is in default, the Bank has the
right to accelerate payment of the debt in full upon 60 days
written notice. The Company has suffered recurring losses from
operations, and the Company's liquidity may not be sufficient to
meet its debt service requirements as they come due over the next
twelve months. These circumstances raise substantial doubt about
the Company's ability to continue as a going concern."
TEXAS STATE AFFORDABLE: S&P Retains 'CC' Rating on Watch Negative
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Standard & Poor's Ratings Services' 'CC (sf)' long-term rating on
Texas State Affordable Housing Corp.'s (American Opportunity
Foundation/Bexar Affordable Housing Corp.) series 2011A and A-T
multifamily housing revenue bonds (HSDA Affordable Housing Pool
project) remains on CreditWatch with negative implications. At
the same time, Standard & Poor's has affirmed its 'D (sf)' long-
term rating on the series 2011B subordinate multifamily housing
revenue bonds.
"In our opinion, the 2011A bonds' continued placement on
CreditWatch negative reflects the likelihood that the debt service
payment scheduled for January 2014 will not be made," said
Standard & Poor's credit analyst Mikiyon W. Alexander. "We base
this on the pool's poor operating performance to date, and its
reliance on trustee advances to meet financial obligations. If
the January 2014 debt service payment does not occur, we will
lower the rating."
The ratings reflect Standard & Poor's view of these weaknesses:
-- The low debt service coverage of 0.48x maximum annual debt
service on the 2011A bonds,
-- The non-payment of scheduled debt service on the 2011B bonds
in January and July 2013,
-- The project's use of $2.3 million in trustee advances since
the project's inception, and
-- The ongoing litigation from taxation authorities disputing
the project's right to property tax exemptions at six of
seven properties.
"The affirmation reflects our view of a technical default that has
occurred based on lack of compliance with certain terms of the
loan agreement," Mr. Alexander added. "The lack of compliance
includes insufficient loan payments, unpaid operating expenses,
and failure to maintain coverage ratios."
TMT GROUP: Creditor Seeks Bankruptcy Court's Nod to Sell Ship
-------------------------------------------------------------
Law360 reported that a major creditor of TMT Group asked a Texas
bankruptcy judge for permission to foreclose on a $40 million
mortgage it holds on one of the shipping giant's vessels, saying
that TMT's mismanagement is putting the boat at risk.
According to the report, Mega International Commercial Bank Co.
Ltd. argued in a motion filed in TMT's Chapter 11 case that it
should be relieved from the automatic bankruptcy stay so it can
take possession of and sell off the M/V A Ladybug.
About TMT Group
Known in the industry as TMT Group, TMT USA Shipmanagement LLC and
its affiliates own 17 vessels. Vessels range in size from
approximately 27,000 dead weight tons (dwt) to approximately
320,000 dwt.
TMT USA and 22 affiliates, including C. Ladybug Corporation,
sought Chapter 11 protection (Bankr. S.D. Tex. Lead Case No. 13-
33740) in Houston, Texas, on June 20, 2013 after lenders seized
seven vessels.
TMT has tapped attorneys from Bracewell & Giuliani LLP and
AlixPartners as financial advisors.
On a consolidated basis, the Debtors have $1.52 billion in assets
and $1.46 billion in liabilities.
TMT already filed a lawsuit in U.S. bankruptcy court aimed at
forcing creditors to release the vessels so they can return to
generating income.
TLO LLC: LexisNexis Says Auction Cutoff Thwarted $180-Mil. Bid
--------------------------------------------------------------
Law360 reported that a LexisNexis Group unit was prepared to offer
$180 million for the assets of bankrupt Florida-based data
solutions provider TLO LLC before bidding was shut down by the
debtor, according to a transcript of the auction.
According to the report, the 20-hour auction ended at 6:15 a.m. on
Nov. 21 with the selection of TransUnion Acquisition Corp.'s $154
million bid as the winning bidder over a $120 million bid by
LexisNexis Risk Solutions FL Inc. and a $135 million bid from
WPTLO Acquisition Corp.
About TLO LLC
TLO LLC, a provider of risk-mitigation services, filed a petition
for Chapter 11 reorganization (Bankr. S.D. Fla. Case No.
13-bk20853) on May 9, 2013, in West Palm Beach, Florida, near the
company's headquarters in Boca Raton. The petition was signed by
E. Desiree Asher as CEO.
Judge Paul G. Hyman, Jr., presides over the case. Robert C. Furr,
Esq., and Alvin S. Goldstein, Esq., at Furr & Cohen, serve as the
Debtor's counsel. Bayshore Partners, LLC is the Debtor's
investment banker. Thomas Santoro and GlassRatner Advisory &
Capital Group, LLC are the Debtor's financial advisors.
Paul J. Battista, Esq., and Mariaelena Gayo-Guitian, Esq., at
Genovese, Joblove & Battista, P.A., represent the Official
Committee of Unsecured Creditors as counsel.
The Debtor disclosed assets of $46.6 million and liabilities of
$109.9 million, including $93.4 million in secured claims. The
principal lender is Technology Investors Inc., owed $89 million.
TII is owned by the estate of Hank Asher, the company's primary
owner who died this year. There is $4.6 million secured by
computer equipment.
TOUSA INC: Jefferies, Castle Creek Defend Bid to Nix WTC Appeal
---------------------------------------------------------------
Jefferies Leveraged Credit Products LLC, and Castle Creek
Arbitrage, LLC, on behalf of the funds it manages, holders of
claims against TOUSA Homes, Inc., submitted the joint (i) reply in
further support of their motion to dismiss the appeal by
Wilmington Trust Company of the Court's classification order and
in opposition to the appellant's response to the motion to
dismiss; and (ii) objection to the appellant's after-the-fact
motion to enlarge time to file its statement of issues on appeal.
WTC, in its response and motion to enlarge, raises two primary
arguments in opposition to dismissal. Neither is persuasive,
Jefferies and Castle Creek contend. First, WTC argued that the
Bankruptcy Court can dismiss an appeal only if an appellant has
failed entirely to file a statement of issues, but not if the
filing is simply late. Second, WTC argued that even if the Court
has authority to order dismissal, the Court would decline to
dismiss the appeal on the grounds of "excusable neglect."
About TOUSA Inc.
Headquartered in Hollywood, Florida, TOUSA, Inc. (Pink Sheets:
TOUS) -- http://www.tousa.com/-- fka Technical Olympic U.S.A.
Inc., dba Technical U.S.A., Inc., Engle Homes, Newmark Homes L.P.,
TOUSA Homes Inc. and Newmark Homes Corp. is a leading homebuilder
in the United States, operating in various metropolitan markets in
10 states located in four major geographic regions: Florida, the
Mid-Atlantic, Texas, and the West.
The Debtor and its debtor-affiliates filed for separate
Chapter 11 protection on Jan. 29, 2008 (Bankr. S.D. Fla. Case
No. 08-10928). Richard M. Cieri, Esq., M. Natasha Labovitz,
Esq., and Joshua A. Sussberg, Esq., at Kirkland & Ellis LLP, in
New York, N.Y.; and Paul S. Singerman, Esq., at Berger Singerman,
in Miami, Fla., represent the Debtors in their restructuring
efforts. Lazard Freres & Co. LLC is the Debtors' investment
banker. Ernst & Young LLP is the Debtors' independent auditor and
tax services provider. Kurtzman Carson Consultants LLC acts as
the Debtors' Notice, Claims & Balloting Agent.
TOUSA's direct subsidiary, Beacon Hill at Mountain's Edge LLC dba
Eagle Homes, filed for Chapter 11 Protection on July 30, 2008
(Bankr. S.D. Fla. Case No. 08-20746). It estimated assets and
debts of $1 million to $10 million in its Chapter 11 petition.
Daniel H. Golden, Esq., and Philip C. Dublin, Esq., at Akin Gump
Strauss Hauer & Feld LLP, in New York, N.Y., represent the
creditors committee.
The unsecured creditors committee initially proposed a chapter 11
liquidating plan for Tousa. However, the committee decided not to
pursue approval of its liquidation plan because of a pending
appeal of its fraudulent transfer action in the U.S. Court of
Appeals for the Eleventh Circuit. In May 2012, the Court of
Appeals in Atlanta held that Tousa's bank lenders received
fraudulent transfers exceeding $400 million.
After mediation before Peter L. Borowitz, Tousa and the unsecured
creditors committee, MatlinPatterson Global Advisers and Monarch
Alternative Capital, as investment adviser to Monarch Master
Funding, collectively reached an agreement in principle on a
settlement proposal. The proposal would form the foundation for a
joint bankruptcy-exit plan for the Debtors.
In May 2013, Tousa and the unsecured creditors committee filed a
proposed liquidating Chapter 11 plan.
On July 12, 2013, Tousa won court approval of a $67 million
settlement with several insurance companies allowing the Debtors
to proceed with an Aug. 1 hearing to confirm the plan. The
dispute with the insurance companies involved the pre-bankruptcy
fraudulent transfers. The insurance companies included Federal
Insurance Co., XL Specialty Insurance Co. and Zurich American
Insurance Co.
According to Bloomberg News, in settlement, the insurance
companies will pay $67 million, with $47.9 million going to
creditors of the Tousa companies that were forced to take on debt
improperly. The first-lien lenders receive $7.66 million, while
second-lien lenders take home $11.5 million. Some of the
insurance companies also pay $8.27 million of the directors' and
officers' defense costs.
Bloomberg relates Tousa's Chapter 11 plan has recoveries ranging
from 58 percent for senior noteholders to 5 percent for creditors
with general unsecured claims. The plan was the result of the
decision from the appeals court in May 2012 finding banks received
fraudulent transfers exceeding $400 million. The opinion
reinstated a ruling by U.S. Bankruptcy Judge John K. Olson which
had been set aside on the first appeal in federal district court.
The Court confirmed the Plan on August 6, 2013.
TRISTAR WELLNESS: Incurs $2.7 Million Net Loss in Third Quarter
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Tristar Wellness Solutions, Inc., filed with the U.S. Securities
and Exchange Commission its quarterly report on Form 10-Q
disclosing a net loss of $2.67 million on $1.28 million of sales
revenue for the three months ended Sept. 30, 2013, as compared
with net income of $1.53 million on $3,000 of sales revenue for
the same period during the prior year.
For the nine months ended Sept. 30, 2013, the Company reported a
net loss of $6.54 million on $2.57 million of sales revenue as
compared with net income of $1.34 million on $4,000 of sales
revenue for the same period a year ago.
The Company's balance sheet at Sept. 30, 2013, showed $5.98
million in total assets, $9.13 million in total liabilities and a
$3.14 million total stockholders' deficit.
The consolidated financial statements for the fiscal year ended
December 31, 2012 states that because the Company has suffered
recurring operating losses from operations, there is substantial
doubt about the Company's ability to continue as a going concern.
A "going concern" opinion indicates that the consolidated
financial statements have been prepared assuming the Company will
continue as a going concern and do not include any adjustments to
reflect the possible future effects on the recoverability and
classification of assets or the amounts and classification of
liabilities that may result from the outcome of this uncertainty.
A copy of the Form 10-Q is available for free at:
http://is.gd/WP0WIH
Form 10-Q Delayed
Prior to the filing of its Quarterly Report, the Company notified
the SEC on Form 12b-25 with respect to the late filing of its
quarterly report on Form 10-Q for the quarter ended Sept. 30,
2013.
"Data and other information regarding certain material operations
of the Company, as well as its financial statements required for
the filing, are not currently available and could not be made
available without unreasonable effort and expense," the Company
said in the filing.
About Tristar
Westport Conn.-based Tristar Wellness Solutions, Inc., is a
company involved in developing, manufacturing and marketing HemCon
Medical Technologies Inc.'s innovative wound care/infection
control medical devices, as well as, developing, marketing and
selling NorthStar Consumer Products, LLC's Beaute de Maman(TM)
product line, which is a line of skincare and other products
specifically targeted for pregnant women, as well as developing
the Soft and Smooth Assets.
UNITED AMERICAN: Delays Form 10-Q for Sept. 30 Quarter
------------------------------------------------------
United American Healthcare Corporation filed with the U.S.
Securities and Exchange Commission a Notification of Late Filing
on Form 12b-25 with respect to its quarterly report on Form 10-Q
for the quarter ended Sept. 30, 2013. United American said it is
not in a position to file the Quarterly Report on Form 10-Q for
the Company's period ended September 30, 2013 because the Company
cannot complete the Form 10-Q in a timely manner without
unreasonable effort or expense.
About United American
Chicago-based United American Healthcare, through its wholly owned
subsidiary Pulse Systems, LLC, provides contract manufacturing
services to the medical device industry, with a focus on precision
laser-cutting capabilities and the processing of thin-wall tubular
metal components, sub-assemblies and implants, primarily in the
cardiovascular market.
United American reported net income of $537,000 on $8.48 million
of contract manufacturing revenue for the year ended June 30,
2013, as compared with a net loss of $1.86 million on $6.83
million of contract manufacturing revenue for the year ended June
30, 2012.
The Company's balance sheet at June 30, 2013, showed $15.82
million in total assets, $12.77 million in total liabilities and
$3.04 million in total shareholders' equity.
Bravos & Associates, CPA's, in Bloomingdale, Illinois, issued a
"going concern" qualification on the consolidated financial
statements for the year ended June 30, 2013. The independent
auditors noted that the Company had a working capital deficiency
of $8.4 million. The Company's liabilities and working capital
raise substantial doubt about its ability to continue as a going
concern.
UNITEK GLOBAL: New Mountain, et al., to Sell 3.7MM Common Shares
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UniTek Global Services, Inc., registered with the U.S. Securities
and Exchange Commission 3,791,169 shares of common stock
underlying warrants for resale by New Mountain Finance Holdings,
L.L.C, Cerberus Levered Loan Opportunities Fund II, L.P., Main
Street Capital Corporation, et al. The warrants were issued to
the Selling Stockholders on July 25, 2013.
The Company will not receive any proceeds from the sale of any
shares by the Selling Stockholders. The Company may, however,
receive the proceeds of any cash exercises of warrants which, if
received, would be used by the Company for working capital
purposes; any such proceeds would however be minimal.
The Company's common stock is traded on the NASDAQ Global under
the symbol "UNTK." On Nov. 11, 2013, the last reported sale price
for the Company's common stock on the NASDAQ Global Market was
$1.20 per share.
The Company will pay the expenses related to the registration of
the shares of common stock covered by this prospectus. The
Selling Stockholders will pay any commissions and selling expenses
they may incur.
A copy of the Form S-1 prospectus is available for free at:
http://is.gd/3K2SOw
About UniTek Global Services
UniTek Global Services, Inc., based in Blue Bell, Pennsylvania,
provides fulfillment and infrastructure services to media and
telecommunication companies in the United States and Canada.
Unitek incurred a net loss of $77.73 million in 2012, as compared
with a net loss of $9.13 million in 2011. As of Dec. 31, 2012,
the Company had $326.40 million in total assets, $278.10 million
in total liabilities and $48.30 million in total stockholders'
equity.
Bankruptcy Warning
As of Dec. 31, 2012, the Company's total indebtedness, including
capital lease obligations, was approximately $170 million. This
amount has increased to approximately $210 million as of Aug. 9,
2013, including amounts borrowed to cash collateralize letters of
credit. The Company's current debt also bears interest at rates
significantly higher than historical periods. The Company said
its substantial indebtedness could have important consequences to
its stockholders. It will require the Company to dedicate a
substantial portion of its cash flow from operations to payments
on its indebtedness, thereby reducing the availability of the
Company's cash flow to fund acquisitions, working capital, capital
expenditures and other general corporate purposes.
"An event of default under either of our credit facilities could
result in, among other things, the acceleration and demand for
payment of all the principal and interest due and the foreclosure
on the collateral. As a result of such a default or action
against collateral, we could be forced to enter into bankruptcy
proceedings, which may result in a partial or complete loss of
your investment," the Company said in the 2012 annual report.
* * *
In the June 11, 2013, edition of the TCR, Moody's Investors
Service lowered UniTek Global Services, Inc.'s probability of
default and corporate family ratings to Ca-PD/LD and Ca,
respectively. The Ca corporate family rating reflects UniTek's
missed interest payment on the term loan which is considered a
default under Moody's definition, the heightened possibility of
another default event, continued delays in the filing of restated
financials including the last two audits, management turnover, the
potential loss of the company's largest customer and other
business and legal risks stemming from issues at the company's
Pinnacle subsidiary.
As reported by the TCR on Oct. 17, 2013, Standard & Poor's Ratings
Services said it raised its corporate credit rating on Blue Bell,
Pa.-based UniTek Global Services Inc. to 'B-' from 'CCC'. "The
ratings upgrade to 'B-' reflects our belief that the company
is no longer vulnerable and dependent on favorable developments to
meet its financial commitments over the next few years," said
Standard & Poor's credit analyst Michael Weinstein.
UNIVERSITY GENERAL: Delays Form 10-Q for Third Quarter
------------------------------------------------------
University General Health System, Inc., has been unable to
complete its financial statements for the quarter ended Sept. 30,
2013, because, among other things, the Company is in the process
of reviewing its accounting for derivative instrument and income
taxes. The Company anticipates filing its 10-Q as soon as
practicable.
About University General
University General Health System, Inc., located in Houston, Texas,
is a diversified, integrated multi-specialty health care provider
that delivers concierge physician- and patient-oriented services.
UGHS currently operates one hospital and two ambulatory surgical
centers in the Houston area. It also owns a revenue management
company, a hospitality service provider and facility management
company, three senior living facilities and manages six senior
living facilities.
University General incurred a net loss attributable to common
shareholders of $3.97 million on $113.22 million of total revenues
for the year ended Dec. 31, 2012, as compared with a net loss
attributable to common shareholders of $2.57 million on $71.17
million of total revenues during the prior year.
The Company's balance sheet at Dec. 31, 2012, showed $174.84
million in total assets, $161.55 million in total liabilities,
$2.56 million in series C, convertible preferred stock, and $10.71
million in total equity.
Moss, Krusick & Associates, LLC, in Winter Park, Florida, issued a
"going concern" qualification on the consolidated financial
statements for the year ended Dec. 31, 2012. The independent
auditors noted that the Company has negative working capital and
relative low levels of cash and cash equivalents. These
conditions raise substantial doubt about its ability to continue
as a going concern.
URBAN AG: Incurs $536,000 Net Loss in Third Quarter
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Urban AG. Corp. filed with the U.S. Securities and Exchange
Commission its quarterly report on Form 10-Q disclosing a net loss
of $536,749 on $195,464 of revenue for the three months ended
Sept. 30, 2013, as compared with net income of $35,918 on $1.96
million of revenue for the same period during the prior year.
For the nine months ended Sept. 30, 2013, the Company reported a
net loss of $1.31 million on $580,487 of revenue as compared with
a net loss of $972,685 on $5.50 million of revenue for the same
peirod a year ago.
The Company's balance sheet at Sept. 30, 2013, showed $3.33
million in total assets, $12.84 million in total liabilities and a
$9.50 million total stockholders' deficit.
Bankruptcy Warning
"Urban Ag is in the process of attempting to secure sufficient
financing to continue operations. We have been working to obtain
financing from outside investors for more than 12 months, but have
not yet been successful. In the interim, short-term debt
financing provided primarily by a corporate investor has secured
all of the company's assets, and is being utilized to support
governance and compliance activities. Additionally, non-payment
of professional and other service providers and reduced general
spending have been instituted until such time as financing is
secured, if ever. If we are unable to obtain financing, we will
be required to further curtail our operations or cease conducting
business. Given our current level of debt, we do not expect that
our stockholders would receive any proceeds if we declare
bankruptcy or seek to liquidate the Company," the Company said in
the Report.
A copy of the Form 10-Q is available for free at:
http://is.gd/5fVfsv
The Company was unable to file its Form 10-Q for the quarter ended
Sept. 30, 2013, on a timely basis.
About Urban AG
North Andover, Massachusetts-based Urban AG. Corp, through its
wholly-owned subsidiary CCS Environmental World Wide, Inc.,
provides hazardous material abatement and environment remediation
services.
The Company' balance sheet at June 30, 2013, showed $3.4 million
in total assets, $12.6 million in total liabilities, and a
stockholders' deficit of 9.2 million.
"The Company has experienced substantial losses, has a working
capital deficiency of approximately $12.3 million, a stockholders'
deficit of approximately $9.2 million and is in default on several
financial obligations at June 30, 2013, which raises substantial
doubt about the Company's ability to continue as a going concern,"
the Company said in its quarterly report for the period ended
June 30, 2013.
USG CORP: To Redeem $325 Million of Convertible Senior Notes
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USG Corporation has issued a notice of redemption to redeem on
Dec. 16, 2013, $325 million in aggregate principal amount of USG's
outstanding $400 million in aggregate principal amount of
10 percent contingent convertible senior notes due 2018.
The notice of redemption provides that the convertible senior
notes called for redemption would be redeemed at a stated
redemption price equal to 105 percent of the aggregate principal
amount of those notes, plus accrued and unpaid interest to (but
not including) the redemption date.
In lieu of redemption, holders may elect prior to the redemption
date to convert their convertible senior notes into shares of USG
common stock. The convertible senior notes are convertible into
87.7193 shares of USG common stock per $1,000 principal amount of
notes, which is equivalent to a conversion price of $11.40 per
share. Based on recent trading prices of USG common stock, USG
believes that the holders of the convertible senior notes
currently would elect to convert their notes called for redemption
rather than receive the redemption price.
To the extent holders of the convertible senior notes do not elect
to convert their notes called for redemption prior to the
redemption date, USG expects to use a combination of cash, cash
equivalents and borrowings under its credit facilities to fund the
redemption price.
As previously disclosed, USG's net operating loss carryforwards
would be subject to limitations under the Internal Revenue Code in
the event the ownership of certain USG stockholders increases by
more than 50 percent over a three-year period. As a result, USG
elected to issue a notice of redemption for less than all of the
convertible senior notes outstanding at this time. In addition,
USG's Board of Directors took action to ensure that the issuances
of all shares of USG common stock to initial purchasers of the
convertible senior notes pursuant to a conversion of their
convertible senior notes are exempt transactions under USG's
rights plan.
About USG Corporation
Based in Chicago, Ill., USG Corporation -- http://www.usg.com/--
through its subsidiaries, manufactures and distributes building
materials producing a wide range of products for use in new
residential, new nonresidential and repair and remodel
construction, as well as products used in certain industrial
processes.
The company filed for Chapter 11 protection on June 25, 2001
(Bankr. Del. Case No. 01-02094). When the Debtors filed for
protection from their creditors, they disclosed $3.252 billion in
assets and $2.739 billion in liabilities. The Debtors emerged
from bankruptcy protection on June 20, 2006.
For the 12 months ended Dec. 31, 2012, the Company incurred a net
loss of $125 million on $3.22 billion of net sales, as compared
with a net loss of $390 million on $2.91 billion of net sales
during the prior year. The Company's balance sheet at Sept. 30,
2013, showed $3.71 billion in total assets, $3.64 billion in total
liabilities and $72 million total stockholders' equity including
noncontrolling interest.
* * *
As reported by the TCR on Aug. 15, 2011, Standard & Poor's Ratings
Services lowered its corporate credit rating on USG Corp. to 'B'
from 'B+'.
"The downgrade reflects our expectation that USG's operating
results and cash flow are likely to be strained over the next year
due to the ongoing depressed level of housing starts and still-
weak commercial construction activity," said Standard & Poor's
credit analyst Thomas Nadramia. "It is now more likely, in
our view, that any meaningful recovery in housing starts may be
deferred until late 2012 or into 2013. As a result, the risk that
USG's liquidity in the next 12 to 24 months will continue to erode
(and be less than we incorporated into our prior ratings) has
increased. The ratings previously incorporated a greater
improvement in housing starts, which would have enabled USG to
reduce its negative operating cash flow in 2012 and achieve
breakeven cash flow or better by 2013."
As reported by the TCR on Oct. 30, 2013, Moody's Investors Service
upgraded USG Corp.'s Corporate Family Rating to B3 from Caa1. The
upgrade reflects better than anticipated overall 3Q13 operating
performance.
In the Sept. 10, 2013, edition of the TCR, Fitch Ratings has
upgraded the ratings of USG Corporation, including the company's
Issuer Default Rating (IDR) to 'B' from 'B-'. The upgrade
reflects USG's improving profitability and credit metrics this
year and the expectation that this trend continues through at
least 2014.
UTE MESA: Filing Lis Pendens Isn't Voidable as Preference
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Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reports that the filing of a lis pendens isn't a transfer of
property and therefore can't be voided as a preference, the U.S.
Court of Appeals in Denver ruled.
According to the report, a bank listed the wrong name in recording
a mortgage, making the mortgage possibly invalid as lien on the
property. Before bankruptcy, the bank initiated a lawsuit to
reform the mortgage and filed a lis pendens, the technical name
for a filing in land records asserting an interest in the
property.
The owner filed for bankruptcy and failed to persuade the
bankruptcy judge that the lis pendens should be voided as a
preferential transfer occurring within 90 days of bankruptcy. The
district court agreed, and the case went up to the U.S. Court of
Appeals for the 10th Circuit.
Citing Colorado law, Circuit Judge Paul J. Kelly Jr. agreed with
the lower courts. A lis pendens, he said, doesn't transfer
property even though it may render the property unmarketable.
Judge Kelly rejected the argument that there must have been a
transfer because the owner's rights in the property were
diminished by the lis pends.
"We do not see how clouding title constitutes 'disposing of or
parting with' an interest in property," he said. He didn't address
whether the mortgage itself was invalid or what the bank's
interest in the property should be.
The case is Ute Mesa Lot 1 LLC v. First-Citizens Bank & Trust Co.
(In re Ute Mesa Lot 1 LLC), 12-1134, U.S. Court of Appeals for the
10th Circuit (Denver.)
About Ute Mesa Lot 1
Denver, Colorado-based Ute Mesa Lot 1, LLC, filed for Chapter 11
bankruptcy (Bankr. D. Colo. Case No. 10-30620) on Aug. 13, 2010.
Duncan E. Barber, Esq., and Steven T. Mulligan, Esq., at Bieging
Shapiro & Burrus LLP, in Denver, assist the Debtor in its
restructuring effort. Ute Mesa owns real property located in
Pitkin County, Colorado. The Debtor disclosed $10,017,982 in
assets and $11,633,024 in liabilities.
VELTI PLC: To Voluntarily Delist Ordinary Shares From NASDAQ
------------------------------------------------------------
Velti plc on Nov. 26 announced its intention to voluntarily delist
its ordinary shares from the NASDAQ Global Select Market. The
Company has notified the NASDAQ Stock Market of its intent to
voluntarily delist its ordinary shares from the NASDAQ Global
Select Market and will file a notice on Form 25 relating to the
delisting of its ordinary shares with the Securities and Exchange
Commission on or about December 6, 2013. The Company expects the
delisting of its ordinary shares to become effective 10 days
following the filing, or December 16, 2013.
As previously announced, the Company is pursuing a sale of its
U.S., U.K., and India mobile marketing businesses and certain of
its U.S.-based advertising businesses to GSO Capital Partners.
Under the terms of the proposed asset purchase agreement and to
facilitate the sale, Velti's U.S. operations, including Velti Inc.
and Air2Web, Inc., filed voluntary petitions for Chapter 11. The
Company's Mobclix unit has filed a Chapter 7 petition. All other
Velti businesses continue to operate as normal while the Company
and its investment bank continue to work to find the best outcome
for all of Velti's businesses.
The voluntary decision to delist from NASDAQ was taken following
the Company's review of several factors, including its previously
disclosed noncompliance with the minimum bid price requirements of
NASDAQ. Also among these factors is the Company's inability to
satisfy questions raised by NASDAQ concerning its ability to
maintain eligibility for continued listing on NASDAQ following
completion of its proposed sale of its mobile marketing business,
as well as the Chapter 11 proceedings for certain of its U.S.
subsidiaries and the Chapter 7 filing of Mobclix.
The Company will work with market makers to enable its ordinary
shares to be quoted on the over-the-counter market following its
NASDAQ delisting. The Company expects that its ordinary shares
will continue to trade over-the-counter so long as a market maker
demonstrates an interest in trading the ordinary shares. However,
the Company can provide no assurance that the trading in its
ordinary shares will continue in the over-the-counter market or in
any other form.
Dublin, Ireland-based Velti plc (Nasdaq: VELT) is a global
provider of mobile marketing and advertising technology and
solutions that enable brands, advertising agencies, mobile
operators and media to implement highly targeted, interactive and
measurable campaigns by communicating with and engaging consumers
via their mobile devices.
VERITY CORP: Promotes Rick Kamolvathin to CEO; Spader Resigns
-------------------------------------------------------------
Verity Corp. appointed Richard Kamolvathin as chief executive
officer effective Nov. 14, 2013.
On Nov. 14, 2013, Duane Spader resigned as CEO of the Company.
Mr. Spader will continue to serve as a member of the Board of
Directors of the Company. In submitting his resignation, Mr.
Spader did not express any disagreement with the Company on any
matter relating to the Company's operations, policies or
practices.
Mr. Kamolvathin, age 44, has been president of the Company since
Oct. 25, 2013, and executive vice president of Verity Farms LLC, a
wholly owned subsidiary of the Company, since February 2011. Mr.
Kamolvathin was appointed as a member of the Company's Board of
Directors on Oct. 21, 2013. From June 2006 through January 2011,
Mr. Kamolvathin was a sustainable agriculture field advisor for
the Rice Bank Foundation, United Nations Thailand. Prior to those
positions, Mr. Kamolvathin worked in the financial services
industry.
Chief Operating Officer
The Company appointed James White, age 62, as chief operating
officer, effective as of Nov. 15, 2013. In 2004, Mr. Wright
founded JLW Communications, a consulting company for sales,
marketing and strategic management, including five years of
consulting work for the Company. Mr. Wright previously served as
president of Triumph Boats, president of McCulloch Corporation and
vice president of Deere & Company.
Chief Financial Officer
The Company entered into an agreement with LLS Enterprises, Inc.,
pursuant to which Ken Wright, age 51, will serve as chief
financial officer of the Company on a part time basis. Mr. Wright
has been a Certified Public Accountant for more than 15 years.
Since January 2009, Mr. Wright has served as Director for Advance
Finance, LLC, an accounting service provider. From July 2005
through 2008, Mr. Wright served as director of Growth Finance,
LLC, an accounting service provider.
About Verity
Sioux Falls, South Dakota-based Verity Corp., formerly AquaLiv
Technologies, Inc., is the parent of Verity Farms II, Inc.,
Aistiva Corporation (formerly AquaLiv, Inc.). Verity Farms II is
dedicated to providing consumers with safe, high-quality and
nutritious food sources through sustainable crop and livestock
production. Aistiva's technology alters the behavior of
organisms, including plants and humans, without chemical
interaction. Aistiva's platform technology influences biological
processes naturally and without chemical interaction. To date,
Aistiva has released products in the industries of water
treatment, skincare, and agriculture.
Bongiovanni & Associates, C.P.A.'s, in Cornelius, North Carolina,
expressed substantial doubt about AquaLiv's ability to continue as
a going concern following their audit of the Company's financial
statements for the year ended Sept. 30, 2012. The independent
auditors noted that the Company has incurred recurring losses from
operations, has a liquidity problem, and requires funds for its
operational activities.
The Company's balance sheet at June 30, 2013, showed $4.69 million
in total assets, $7.06 million in total liabilities and a
$2.36 million total stockholders' deficit.
VERTIS HOLDINGS: Gets Plan-Filing Exclusivity Extended to Feb. 3
----------------------------------------------------------------
Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reports that although Vertis Inc. sold its assets in January and
has yet to propose a Chapter 11 plan, the Baltimore-based
advertising and marketing services provider drew no objection from
creditors for a fourth enlargement of exclusive plan-filing
rights.
According to the report, the bankruptcy court in Delaware extended
exclusivity until Feb. 3, some two months short of the maximum
permitted by the Bankruptcy Code.
Quad/Graphics Inc. said it bought the business for a net price of
about $170 million. The sale created a $20 million fund to wind
down the remainder of the bankruptcy. About $10 million was left
earlier this month.
The current bankruptcy is Vertis's third. The prior case, in late
2010, required less than a month to complete, eliminating $700
million in debt.
About Vertis Holdings
Vertis Holdings Inc. -- http://www.thefuturevertis.com/--
provides advertising services in a variety of print media,
including newspaper inserts such as magazines and supplements.
Vertis and its affiliates (Bankr. D. Del. Lead Case No. 12-12821),
returned to Chapter 11 bankruptcy on Oct. 10, 2012, this time to
sell the business to Quad/Graphics, Inc., for $258.5 million,
subject to higher and better offers in an auction.
As of Aug. 31, 2012, the Debtors' unaudited consolidated financial
statements reflected assets of approximately $837.8 million and
liabilities of approximately $814.0 million.
Bankruptcy Judge Christopher Sontchi presides over the 2012 case.
Vertis is advised by Perella Weinberg Partners, Alvarez & Marsal,
and Cadwalader, Wickersham & Taft LLP. Quad/Graphics is advised
by Blackstone Advisory Partners, Arnold & Porter LLP and Foley &
Lardner LLP, special counsel for antitrust advice. Kurtzman
Carson Consultants LLC is the Debtors' claims agent.
Quad/Graphics is a global provider of print and related
multichannel solutions for consumer magazines, special interest
publications, catalogs, retail inserts/circulars, direct mail,
books, directories, and commercial and specialty products,
including in-store signage. Headquartered in Sussex, Wis. (just
west of Milwaukee), the Company has approximately 22,000 full-time
equivalent employees working from more than 50 print-production
facilities as well as other support locations throughout North
America, Latin America and Europe.
Vertis first filed for bankruptcy (Bankr. D. Del. Case No. 08-
11460) on July 15, 2008, to complete a merger with American Color
Graphics. ACG also commenced separate bankruptcy proceedings. In
August 2008, Vertis emerged from bankruptcy, completing the
merger.
Vertis against filed for Chapter 11 bankruptcy (Bankr. S.D.N.Y.
Case No. 10-16170) on Nov. 17, 2010. The Debtor estimated its
assets and debts of more than $1 billion. Affiliates also filed
separate Chapter 11 petitions -- American Color Graphics, Inc.
(Bankr. S.D.N.Y. Case No. 10-16169), Vertis Holdings, Inc. (Bankr.
S.D.N.Y. Case No. 10-16170), Vertis, Inc. (Bankr. S.D.N.Y. Case
No. 10-16171), ACG Holdings, Inc. (Bankr. S.D.N.Y. Case No. 10-
16172), Webcraft, LLC (Bankr. S.D.N.Y. Case No. 10-16173), and
Webcraft Chemicals, LLC (Bankr. S.D.N.Y. Case No. 10-16174). The
bankruptcy court approved the prepackaged Chapter 11 plan on Dec.
16, 2010, and Vertis consummated the plan on Dec. 21. The plan
reduced Vertis' debt by more than $700 million or 60%.
GE Capital Corporation, which serves as DIP Agent and Prepetition
Agent, is represented in the 2012 case by lawyers at Winston &
Strawn LLP. Morgan Stanley Senior Funding Inc., the agent under
the prepetition term loan, and as term loan collateral agent, is
represented by lawyers at White & Case LLP, and Milbank Tweed
Hadley & McCloy LLP.
On Jan. 16, 2013, Quad/Graphics completed the acquisition of
Vertis Holdings for a net purchase price of $170 million. This
assumes the purchase price of $267 million less the payment of $97
million for current assets that are in excess of normalized
working capital requirements.
VILLAGE AT KNAPPS: U.S. Trustee Drops Case Conversion Bid
---------------------------------------------------------
Daniel M. McDermott, the U.S. Trustee for Region 9, has withdrawn
his motion to convert the Chapter 11 case of The Village at
Knapp's Crossing, L.L.C. to one under Chapter 7 of the Bankruptcy
Code.
The U.S. Trustee advised the Court that the Debtor has now filed
all the currently required monthly financial reports.
As reported in the Troubled Company Reporter on Oct. 31, 2013, the
Trustee filed a motion for case conversion for the Debtor's
failure to file monthly operating reports.
Without the reports, the U.S. Trustee said it cannot determine
whether there has been a substantial loss to or diminution of the
estate and whether there is a reasonable likelihood of
rehabilitation. In the continued absence of these reports the
Court should assume that there has been a loss to the estate and
that there is an absence of a reasonable likelihood of
rehabilitation.
About Village at Knapp's
The Village at Knapp's Crossing, L.L.C. in Grand Rapids, Michigan,
filed for Chapter 11 (Bankr. W.D. Mich. Case No. 13-06094) on
July 25, 2013. Judge Scott W. Dales handles the case. On the
Petition Date, the Debtor estimated its assets and debts at
$10 million to $50 million. The petition was signed by Steven D.
Benner, managing member on behalf of S.D. Benner, sole member.
Tishkoff & Associates PLLC is the Debtor's bankruptcy counsel.
Robert Attmore, Esq., is the Debtor's special counsel.
VILLAGE AT KNAPPS: Amends List of 20 Largest Unsecured Creditors
----------------------------------------------------------------
The Village at Knapp's Crossing, L.L.C., filed with the U.S.
Bankruptcy Court for the Western District of Michigan amended list
of creditors holdings 20 largest unsecured claims, disclosing:
Name of Creditor Nature of Claim Amount of Claim
---------------- --------------- ---------------
Comerica Bank Mortgage $2,850,000
150 W. Jefferson Ave., Suite
Detroit, MI 48226
International Bank of Mortgage $4,142,007
Chicago
5069 N. Broadway
Chicago IL 60640
First Community Bank Mortgage $167,113
Comerica Bank Mortgage $102,668
City of Grand Rapids Water Main $70,519
Installation
McAlpine PC Unsecured Debt $18,039
Foster Swift Attorneys Fees $17,890
Christine Yu Unsecured Debt $12,865
Detroit Testing Company Environmental $10,500
Soil Testing
Kent County Treasurer Property Taxes $7,852
Kent County Treasurer Property Taxes $7,512
Arthur J. Gallagher Risk Bond Fees $6,450
Equipment Solutions Equipment Rental $2,400
Kent County Treasurer Property Taxes $2,071
Jerry Carpenter Security Deposit $1,700
for lease
David & Amy Jones Security Deposit $1,350
for lease
Florida Mae Franklin Security Deposit $1,074
for lease
Michael A. McInerney, PLC Attorney Fees $350
The Debtor amended the list to add unsecured creditors.
About Village at Knapp's
The Village at Knapp's Crossing, L.L.C. in Grand Rapids, Michigan,
filed for Chapter 11 (Bankr. W.D. Mich. Case No. 13-06094) on
July 25, 2013. Judge Scott W. Dales handles the case. On the
Petition Date, the Debtor estimated its assets and debts at
$10 million to $50 million. The petition was signed by Steven D.
Benner, managing member on behalf of S.D. Benner, sole member.
Tishkoff & Associates PLLC is the Debtor's bankruptcy counsel.
Robert Attmore, Esq., is the Debtor's special counsel.
VYCOR MEDICAL: Incurs $507,000 Net Loss in Third Quarter
--------------------------------------------------------
Vycor Medical, Inc., filed with the U.S. Securities and Exchange
Commission its quarterly report on Form 10-Q disclosing a net loss
of $506,909 on $321,630 of revenue for the three months ended
Sept. 30, 2013, as compared with a net loss of $792,109 on
$220,121 of revenue for the same period a year ago.
For the nine months ended Sept. 30, 2013, the Company incurred a
net loss of $1.81 million on $788,258 of revenue as compared with
a net loss of $2.37 million on $918,108 of revenue for the same
period a year ago.
The Company's balance sheet at Sept. 30, 2013, showed $2.26
million in total assets, $5.08 million in total liabilities and a
$2.82 million total stockholders' deficiency.
A copy of the Form 10-Q is available for free at:
http://is.gd/5vsE3N
About Vycor Medical
Boca Raton, Fla.-based Vycor Medical, Inc. (OTC BB: VYCO)
-- http://www.VycorMedical.com/-- is a medical device company
committed to making neurological brain, spinal and other surgical
procedures safer and more effective. The Company's flagship,
Patent Pending ViewSite(TM) Surgical Access Systems represent an
exciting new minimally invasive access and retraction system that
holds the potential for speedier, safer and more economical brain,
spinal and other surgeries and a quicker patient discharge.
Vycor's innovative medical instruments are designed to optimize
neurosurgical site access, reduce patient risk, accelerate
recovery, and add tangible value to the professional medical
community.
Vycor Medical disclosed a net loss of $2.92 million in 2012, as
compared with a net loss of $4.77 million in 2011.
Paritz & Company, P.A., in Hackensack, New Jersey, issued a "going
concern" qualification on the consolidated financial statements
for the year ended Dec. 31, 2012. The independent auditors noted
that the Company has incurred a loss since inception, has a net
accumulated deficit and may be unable to raise further equity
which factors raise substantial doubt about its ability to
continue as a going concern.
WAFERGEN BIO-SYSTEMS: Reports $12.2 Million Net Loss in Q3
----------------------------------------------------------
WaferGen Bio-systems, Inc., filed with the U.S. Securities and
Exchange Commission its quarterly report on Form 10-Q disclosing
a net loss attributable to common stockholders of $12.22 million
on $389,547 of total revenue for the three months ended Sept. 30,
2013, as compared with a net loss attributable to common
stockholders of $3.16 million on $176,608 of total revenue for the
same period a year ago.
For the nine months ended Sept. 30, 2013, the Company incurred a
net loss attributable to common stockholders of $22.07 million on
$814,282 of total revenue as compared with a net loss attributable
to common stockholders of $7.73 million on $269,999 of total
revenue for the same period during the prior year.
The Company's balance sheet at Sept. 30, 2013, showed $15.75
million in total assets, $5.80 million in total liabilities, $4.02
million in series A and B convertible preference shares of
subsidiary, and $5.93 million in total stockholders' equity.
"We believe that the successful capital raise and the simplified
capital structure are an important milestone in WaferGen's
turnaround effort. More importantly, we are seeing a keen
interest in our products, especially the SmartChip TE, which is
used for target enrichment prior to Next-Generation Sequencing
(NGS). It is already being implemented by some top-tier early-
access customers such as BGI, the world's largest genomics
institution, and we have a number of ongoing pilot studies with
clinical diagnostic labs and translational research centers," said
Ivan Trifunovich, president and CEO of Wafergen. He added, "In
addition to the current product offering that enables more
accurate NGS-based clinical tests, we are working on a new product
that would revolutionize the sample preparation prior to
sequencing. The streamlined workflow is designed to combine
target enrichment and all subsequent library preparation steps
into one step on SmartChip TE. This will dramatically reduce
time-to-result, hands-on-time and overall cost of diagnostic tests
while improving quality and productivity. A working prototype
designed for BRCA1/2 genes is being beta-tested with plans to
commercially launch it in the first quarter of next year."
A copy of the Form 10-Q is available for free at:
http://is.gd/RmcAyI
About WaferGen Bio-systems
Fremont, California-based WaferGen Bio-systems, Inc., engages in
the development of systems for gene expression quantification,
genotyping and stem cell research. Since 2008, the Company's
primary focus has been on the development, manufacture and
marketing of its SmartChip System, a genetic analysis platform
used for profiling and validating molecular biomarkers in the life
sciences and pharmaceutical drug discovery industries.
The Company reported a net loss of $8.2 million on $586,000 of
revenue in 2012, net loss of $13.1 million on $523,000 of revenue
in 2011.
As reported in the TCR on April 11, 2013, SingerLewak LLP, in San
Jose, California, expressed substantial doubt about WaferGen Bio-
systems' ability to continue as a going concern, citing the
Company's operating losses and negative cash flows since
inception.
WALKER & DUNLOP: S&P Rates $175MM Sr. Secured Loan 'BB-'
--------------------------------------------------------
Standard & Poor's Ratings Services said it assigned its 'BB-'
rating on Walker & Dunlop Inc.'s $175 million seven-year senior
secured term loan. At the same time, S&P affirmed its 'BB-'
issuer credit rating on Walker & Dunlop. The outlook remains
stable.
The issue-level rating action follows Walker Dunlop's announcement
that it plans to enter into a $175 million seven-year senior
secured term loan to retire its existing $75 million of corporate
debt, fund future growth in its business, opportunistically
repurchase stock, and for general corporate purposes.
Bethesda, Maryland-based Walker is a publicly traded company that
originates and sells multifamily mortgages to the U.S. government
sponsored entities (GSEs) -- Freddie Mac and Fannie Mae -- and to
Ginnie Mae through its U.S. Department of Housing and Urban
Development (HUD) lending program. Walker retains a tiered, first
loss on loans sold to Fannie and is subject to representation and
warranty risk on mortgages sold to Fannie, Freddie, and Ginnie.
The company retains the majority of mortgage servicing rights
(MSRs) on loans it sells, which provides an additional source of
revenue diversification.
"Uncertainty about Federal Housing Finance Agency funding of
multifamily loans for 2014 continues to weigh on the company and
sector," said Standard & Poor's credit analyst Stephen Lynch.
"The federal government's role in private housing is becoming a
more widely debated topic, creating significant uncertainty for
the company."
Walker's strategy is largely based on the funding and guarantees
that the GSEs provide to the multifamily lending market. In 2012,
Walker sold 83% of its originations to GSEs, thereby exposing the
enterprise to government entities that have seen noteworthy
changes over the past few years and will likely continue to
evolve. Prior to 2012, Fannie Mae and Freddie Mac had broad
authority to purchase multifamily mortgages based on market demand
and conditions.
"The stable outlook reflects our expectation that Walker will
organically grow originations by preserving market share, continue
to tightly control credit losses, and largely maintain current
profit margins," said Mr. Lynch.
S&P could lower the rating if leverage rises above 4x, on a debt
to adjusted EBITDA basis, for consecutive quarters without a
credible plan to reduce it. S&P could also lower the rating if
conditions in the commercial real estate markets deteriorate
significantly, specifically for multifamily lending, causing
profitability and cash flows to drop substantially.
S&P could raise the rating over time if Walker diversifies its
business and maintains a strong financial profile.
WALLDESIGN INC: Panel Can Retain Landau Gottfried as Lit. Counsel
-----------------------------------------------------------------
The U.S. Bankruptcy Court for the Central District of California
has authorized the Official Committee of Unsecured Creditors of
Walldesign Inc. to retain Landau Gottfried & Berger LLP as special
litigation counsel for the estate, nunc pro tunc to July 25, 2013.
As reported in the TCR on Oct. 8, 2013, Landau Gottfried will
investigate and, if appropriate, prosecute claims the estate may
have against Michael Bello, other affiliates of the Debtor, other
entities acting with or controlled by Mr. Bello and such
affiliates, and third-parties who may have received transfers for
the benefit of Mr. Bello and other affiliates of the Debtor.
Mr. Bello has been the chief executive officer of the Debtor since
Sept. 13, 2011. Mr. Bello is also the sole owner of the Debtor.
In its schedules of assets and liabilities, the Debtor's total
assets showed $16 million and total liabilities showed $26
million. Within the one year prior to its bankruptcy, the Debtor
made payments to, among others, affiliates:
Bello Family Trust $600,000 unspecified purposes
RU $2 million rent
Bello vendors $819,000 unspecified purposes
shareholders distributions $800,0000 various third parties
Michael Bello $236,000 annual salary
Further investigation revealed that Mr. Bello and his affiliates
received well in excess of $10 million during the four year period
prior to the petition date. Documents provided to the Committee
and Landau Gottfried, appeared that both prior to and after the
petition date, Mr. Bello controlled a bank account in the name of
the Debtor at preferred bank but was not disclosed on the Debtor's
schedules, statement of financial affairs or monthly operating
reports, at a time when Mr. Bello served post-petition as director
of the Debtor. It appears the Mr. Bello may have used more than
$5 million of the Debtor's fund in that account for his personal
benefit and his affiliates and not the Debtor.
The Estate has limited available funds, currently $70,000 in
unencumbered available cash, and cannot pay Landau Gottfried for
litigation counsel on other than alternate fee basis. Moreover,
Landau Gottfried will need to cover all of its own costs relating
to this representation, including overhead and attorney time
costs, until there are sufficient recoveries on the claims to
cover those expense.
John P. Reitman, a limited liability partner of Landau Gottfried,
assured the Court that the firm is a "disinterested person" as the
term is defined in Section 101(14) of the Bankruptcy Code and does
not represent any interest adverse to the Debtors and their
estates.
About Walldesign
Walldesign Inc., incorporated in 1983, has been in the business of
installing drywall, insulation, plaster and providing related
services to single and multi-family construction projects
throughout California, Nevada and Arizona for over 20 years.
Customers include some of the largest homebuilders in the United
States, such as Pulte, DR Horton, K. Hovnanian, Toll Brothers and
KB Homes. In fiscal 2011, Walldesign generated more than $43.5
million in annual revenues.
Walldesign, based in Newport Beach, California, said the global
credit crisis that occurred in the third quarter of 2008 had a
severe negative impact on its business: capital for construction
projects dried up, buyers vacated the market for new homes and
profit margins on new jobs eroded. Although it has significantly
downsized its operations in an effort to remain profitable in the
recessionary conditions, cash flow problems arose during this
process. These problems slowed payments to vendors, precipitating
collection lawsuits forcing it to seek Chapter 11 protection
(Bankr. C.D. Calif. Case No. 12-10105) on Jan. 4, 2012.
Judge Robert N. Kwan presides over the case. Marc J. Winthrop,
Esq., Sean A. O'Keefe, Esq., and Jeannie Kim, Esq., at Winthrop
Couchot, serve as the Debtor's counsel. In its petition, the
Debtor estimated $10 million to $50 million in assets and debts.
The petition was signed by Michael Bello, chief executive officer.
Brian Weiss of BSW & Associates serve as the Debtor's Chief
Restructuring Officer.
An official committee of unsecured creditors has been appointed in
the case. The Committee tapped Jones Day as its counsel.
WATERFORD GAMING: Refinancing No Effect on Moody's Ratings
----------------------------------------------------------
Moody's Investors Service commented that Waterford Gaming, LLC's
ratings, including its Caa3 Corporate Family Rating and negative
rating outlook are not affected by Mohegan Tribal Gaming
Authority's bank facility refinancing and $500 million senior note
issuance.
Waterford is a special purpose company formed solely for the
purpose of holding its 50% partnership interest, as a general
partner, in TCA, a Connecticut general partnership and the manager
(until January 1, 2000) and developer of the Mohegan Sun casino
located in Uncasville, CT. TCA receives relinquishment fees based
on certain gross revenues of the Mohegan Sun casino, which is
owned and operated by Mohegan Tribal Gaming Authority.
WESTERN FUNDING: BMO, Others Object to FTI Employment
-----------------------------------------------------
Rodney M. Jean, Esq., at Lionel Sawyer & Collins, on behalf of
secured creditor BMO Harris Bank N.A., joined in the Official
Committee of Unsecured Creditors' opposition to Western Fundings
Incorporated, et al.'s application to employ FTI Consulting, Inc.
as financial advisors; and investment bankers.
BMO stated that the compensation mechanism proposed in the motion
violates the stipulation authorizing the Debtors to use cash
collateral. The Debtors proposed to retain FTI and to pay FTI
without any further review by the Court or opportunity for any
party-in-interest to object to the reasonableness of FTI's fees
and expenses.
Jeanette E. McPherson, Esq., at Schwartzer & McPherson Law Firm on
behalf of the Committee, on Nov. 4 stated that FTI has failed to
meet its burden that the terms and conditions of its employment
are reasonable. Ms. McPherson noted that the Debtors proposed to
pay FTI for investment banker services as:
1. payment of (a) a recapitalization fee of $500,000 for a
recapitalization transaction for the first $25 million of
aggregate value and 10% of the aggregate value above $25 million
involving the companies; and (b) a sale fee of $500,000 will be
paid for the first $25 million of the aggregate value and 10% of
the aggregate value above $25 million in the event the companies
consummate the sale transaction either during the employment or
within 12 months of either the employment or its early termination
with any of the parties identified during the employment or its
early termination with any parties identified regarding a
transaction; and
2. reimbursement of all of its expenses.
Further Objections
Ogonna M. Atamoh, Esq., at Cotton, Driggs, Walsh, Holley, Woloson
& Thompson, on behalf of Class B managers -- Mark Finston and
James B. Hadden -- filed a joinder to omnibus limited opposition
of Class B Members of Harbor Structured Finance, LLC to the
employment of (i) Larson & Zirzow, LLC, as general reorganization
counsel; (ii) Hilco Receivable, LLC as backup servicer to the
Debtors; (iii) High Ridge Partners as financial advisors to the
Debtors; (iv) Lewis Roca Rothgerber, LLP as special counsel
retention applications; and (v) FTI Consulting, Inc., as (a)
financial advisors for the Debtors nunc pro tunc to Oct. 5, 2013;
and (b) investment bankers for the Debtors to assist with sales
transactions.
The Class B Members asked that Court deny the applications in its
entirety because the Class B Managers has filed a motion to
dismiss the Chapter 11 case for Frederick Cooper and Katherine
Cooper's lack of authority to file a voluntary petition on behalf
of WTI without the consent of Messrs. Finston and Hadden. They
similarly lack authority to employ the professionals.
Christopher D. Jaime, Esq., at Maupin, Cox & Legoy, P.C., and
Joseph F. Murray, Esq., at Murray Murphy Moul + Basil LLP, on
behalf of Class B Members of Harbor Structured Finance, LLC, the
sole shareholder of Western Funding Incorporated, filed an
omnibus limited opposition to professional, financial advisor and
special counsel retention applications.
Debtor's Bid to Hire FTI
According to the Debtor, as financial advisor, FTI will:
-- assist the Debtors in the preparation of financial related
disclosures required by the Court;
-- assist the Debtors with information and analyses for the use
of cash collateral; and
-- assist in the identification and implementation of the
short-term cash management procedures.
As investment banker, FTI will:
-- identify and initiate potential sale or recapitalization
transactions;
-- review and analyze the business plan and financial
projections prepared by the companies; and
-- evaluate the Companies' Debt capacity in light of its
projected cash flows and assist in the determination of
appropriate capital structure for the companies.
FTI's personnel hourly rates are:
Senior Managing Directors $675 - $895
Directors/Managing Directors $500 - $745
Consultants/Senior Consultants $280 - $530
Adminitrative/Paraprofessionals $125 - $230
To the best of the Debtor's knowledge, FTI is a "disinterested
person" as that term is defined in Section 101(14) of the
bankruptcy Code.
About Western Funding Inc.
Las Vegas car-loan maker Western Funding Inc., whose customers
usually have less-than-perfect credit, filed for Chapter 11
bankruptcy protection (Bankr. D. Nev., Case No. 13-17588) on
Sept. 4, 2013, after its own lender said the company broke
WORLD IMPORTS: Can Access Bank's Cash Collateral Until Dec. 20
--------------------------------------------------------------
On Nov. 13, 2013, the U.S. Bankruptcy Court for the Eastern
District of Pennsylvania entered a fourth final stipulation and
order authorizing World Imports, Ltd., et al., to use cash
collateral of PNC Bank, National Association, and PNC Equipment
Finance, LLC, until 5:00 p.m. on Dec. 20, 2013, unless earlier
terminated upon the occurrence of a "termination event."
As adequate protection, the banks are granted replacement liens in
all of the Debtors' post-petition collateral.
Any diminution in the value of the pre-petition liens in favor of
the Banks caused by the Debtors' use of the Banks' cash collateral
that is not compensated by post-petition collateral or through
adequate protection payments will constitute a cost and expense of
administration in the Bankruptcy Cases in accordance with Section
503(b)(1) of the Bankruptcy Code and will have a superpriority
status pursuant to Section 507(b) of the Bankruptcy Code/.
A copy of the Fourth Final Stipulation and Order is available at:
http://bankrupt.com/misc/worldimports.doc139.pdf
About World Imports
World Imports, Ltd., filed a Chapter 11 petition (Bankr. E.D. Pa.
Case No. 13-15929) on July 3, 2013, in Philadelphia. Debtor-
affiliates World Imports South, LLC (Bankr. E.D. Pa. Case No.
13-15933), 11000 LLC (Bankr. E.D. Pa. Case No. 13-15934, and World
Imports Chicago, LLC (Bankr. E.D. Pa. Case No. 13-15935) filed
separate petitions for Chapter 11 relief. The cases are jointly
administered under Case No. 13-15929. John E. Kaskey, Esq., at
Braverman Kaskey, P.C., in Philadelphia, serves as counsel to the
Debtors. World Imports, Ltd., estimated assets and debts of
$10 million to $50 million. World Imports South, LLC, estimated
assets of $1 million to $10 million.
WVSV HOLDINGS: Hearing on Rival Plans Continued to Dec. 9
---------------------------------------------------------
The initial confirmation hearing on Debtor WVSV Holdings, LLC's
Plan and Creditor 10K's competing Chapter 11 plan originally
scheduled on Nov. 19, 2013, at 1:30 p.m. has been continued to
Dec. 9, 2013, at
10:00 a.m.
The last day for filing and serving written objections to
confirmation of the Debtor's Plan, or the Creditor's Plan,
pursuant to Bankruptcy Rule 3020(b)(1) is Dec. 2, 2013. The
ballot regarding the Debtor's Plan must be received by Michael W.
Carmel, Esq., Michael W. Carmel, Ltd., 80 East Columbus Avenue,
Phoenix, Arizona 85012-2334, and the ballot regarding the
Creditor's Plan must be received by David J. Hindman, Esq., Mesch,
Clark & Rothschild, P.C., 259 N. Meyer Ave., Tucson, Arizona 85701
no later than Dec. 2, 2013.
The Debtor and 10K will each file a required written Ballot Report
with the U.S. Bankruptcy Court for the District of Arizona no
later than Dec. 5, 2013.
As reported in the TCR on Sept. 2, 2013, under the Debtor-proposed
Plan, funding to pay creditors will be from cash on hand; proceeds
from the sale of any of the Debtor's property; DIP Loan proceeds;
and infusions of equity, if necessary. The Debtor believes that
it will have sufficient cash on hand to meet all the Plan's
obligations. The Debtor's best projections are this figure will
be no less than $300,000 (for attorneys' fees), and perhaps as
much as $800,000 -- if the Jan. 15, 2013 payment is factored, as
well as additional expenses.
10K's Plan proposes two options:
Option A -- The Plan will be funded by the Bankruptcy
Estate's sale of 855 acres of Tract A to 10K
for the purchase price of $8,551,000; and
Option B -- 10K's Class 2 judgment claim, Class 4 secured
claim, Class 6 litigation claim, and Class 7
administrative claim against the Bankruptcy
Estate will be deemed satisfied by the transfer
to 10K of all of the Bankruptcy Estate's right,
title, and interests, both legal and equitable,
in and to all real property, personal property,
and contract rights.
The Debtor-proposed Plan will impair the secured claim of KPHV,
LLC, which will release its lien for payment at the rate of $200
per acre sold. All unpaid principal and interest at the rate of
12% per annum will be due and payable on or before March 20, 2015.
The 10K Amended Creditor's Plan will not impair KPHV's secured
claim and will pay the allowed amount of the claim in full from
cash on hand of the bankruptcy estate.
10K LLC's judgment claim is unimpaired and will be paid in full
under the Debtor-sponsored Plan although the Debtor disputes the
asserted amount of the claim, which is $284,179. Under 10K's
Plan, its judgment claim will be deemed satisfied by a credit
against the purchase price to be paid by 10K as part of the sale.
10K, LLC's secured claim is also unimpaired and will be paid in
full under the Debtor-sponsored Plan. 10K also asserts an
unsecured claim in the amount of $417,000,000. The Debtor denies
liability on this claim.
General unsecured claims under the Debtor-sponsored Plan are
impaired and will receive 100% of its allowed general unsecured
claim. Payments to general unsecured claims will be made in four
equal semi-annual payments, the first of which will commence
60 days after the Effective Date. Interest will accrue on these
claims at the federal judgment interest rate.
A full-text copy of the Disclosure Statement explaining the
Debtor's Amended Plan, dated Aug. 27, 2013, is available for free
at http://bankrupt.com/misc/WVSVdebtords0827.pdf
A full-text copy of the Disclosure Statement, explaining the 10K
Creditor's Amended Plan, dated Aug. 27, 2013, is available for
free at http://bankrupt.com/misc/WVSV10kds0827.pdf
About WVSV Holdings
W.V.S.V. Holdings LLC, the owner of about 13,000 acres of vacant
land in Buckeye, Arizona, filed a petition for Chapter 11
protection (Bankr. D. Ariz. Case No. 12-10598) on May 14, 2012, in
Phoenix. The Debtor claims that the three tracts of land planned
for "future development" are worth $120 million and secure $57.3
million in debt. The Debtor scheduled $120.04 million in assets
and $57.35 million in liabilities.
West Valley Ventures, LLC, owns 75% of the Debtor, and Breycliffe,
LLC, owns the remaining 25%.
Judge Redfield T. Baum, Sr., presides over the case. Michael W.
Carmel, Esq., serves as the Debtor's counsel. The petition was
signed by Lee Allen Johnson, manager of West Valley Ventures,
manager.
The U.S. Trustee has not appointed an official committee of
unsecured creditors in the Debtor's case because an insufficient
number of persons holding unsecured claims against the Debtor have
expressed interest in serving on a committee. The U.S. Trustee
reserves the right to appoint the committee should interest
develop among the creditors.
WYLDFIRE ENERGY: Trustee Wants Combined Hearing to Approve Plan
---------------------------------------------------------------
Nancy Ribaudo, Esq., at Kelly Hart & Hallman LLP, on behalf of the
Michael A. McConnell, the Chapter 11 Trustee for Wyldfire Energy,
Inc., asks the U.S. Bankruptcy Court for the Northern District of
Texas to (i) allow a combined hearing on disclosure statement and
plan confirmation; (ii) establish combined disclosure statement/
confirmation hearing date; and (iii) establish objection and
voting deadlines in order to ensure that the case is handled
expeditiously and economically.
The Chapter 11 trustee anticipates filing a Plan of Liquidation
within the next few weeks. The trustee explains there are few
creditors and claims in the case. Other than approximately $500
in ad valorem property tax claims, there are no secured creditors.
It is anticipated that two of the major unsecured creditors will
be withdrawing their claims as a result of a court-approved
settlement with the trustee. The remaining unsecured creditor
claims include claims by former professionals of the Debtor,
insiders of the Debtor, or unliquidated claims. There is only one
equity interest holder.
About Wyldfire Energy
Palo Pinto, Texas-based Wyldfire Energy, Inc., filed a bare-bones
Chapter 11 petition (Bankr. N.D. Tex. Case No. 12-70239) in
Wichita Falls, Texas, on June 20, 2012. Tamara Ford, a 100%
stockholder, signed the Chapter 11 petition. Judge Harlin DeWayne
Hale oversees the case. Ronald L. Yandell, Esq., serves as the
Debtor's counsel.
Michael A. McConnell, Esq., at Kelly, Hart & Hallman, represent
Chapter 11 Trustee Michael Arthur McConnell as counsel. The
Trustee tapped Lain, Faulkner & Co., P.C. as his accountants.
Z TRIM HOLDINGS: Incurs $2.5 Million Net Loss in Third Quarter
--------------------------------------------------------------
Z Trim Holdings, Inc., filed with the U.S. Securities and Exchange
Commission its quarterly report on Form 10-Q disclosing a net loss
of $2.50 million on $296,286 of total revenues for the three
months ended Sept. 30, 2013, as compared with a net loss of $14.18
million on $411,941 of total revenues for the same period during
the prior year.
For the nine months ended Sept. 30, 2013, the Company reported a
net loss of $10.76 million on $1.04 million of total revenues as
compared with a net loss of $19.70 million on $1.05 million of
total revenues for the same period a year ago.
The Company's balance sheet at Sept. 30, 2013, showed $4.98
million in total assets, $1.02 million in total liabilities and
$3.95 million in total stockholders' equity.
A copy of the Form 10-Q is available for free at:
http://is.gd/FWtRA3
About Z Trim
Mundelein, Ill.-based Z Trim Holdings, Inc., is a functional food
ingredient company which provides custom product solutions that
help answer the food industry's problems. Z Trim's revolutionary
technology provides value-added ingredients across virtually all
food industry categories. Z Trim's all-natural products, among
other things, help to reduce fat and calories, add fiber, provide
shelf-stability, prevent oil migration, and add binding capacity
-- all without degrading the taste and texture of the final food
products.
Z Trim Holdings disclosed a net loss of $9.58 million in 2012
following a net loss of $6.94 million in 2011.
M&K CPAS, PLLC, in Houston, Texas, issued a "going concern"
qualification on the consolidated financial statements for the
year ended Dec. 31, 2012. The independent auditors noted that
the Company had a working capital deficit and reoccurring losses
as of Dec. 31, 2012. These conditions raise substantial doubt
about its ability to continue as a going concern.
Z TRIM HOLDINGS: Closes $1.4 Million Public Offering
----------------------------------------------------
Z Trim Holdings, Inc., completed a registered public offering of
1,866,667 shares of common stock at a price per share of $0.75 and
warrants to purchase 1,400,000 shares of common stock at an
exercise price of $1.00 per share, representing gross proceeds to
Z Trim of $1,400,000. Z Trim intends to use the net proceeds for
working capital needs and other general corporate purposes,
including conducting research and development, hiring additional
sales and R&D staff, and further protecting its intellectual
property.
Maxim Group LLC served as the exclusive placement agent for the
offering.
About Z Trim
Mundelein, Ill.-based Z Trim Holdings, Inc., is a functional food
ingredient company which provides custom product solutions that
help answer the food industry's problems. Z Trim's revolutionary
technology provides value-added ingredients across virtually all
food industry categories. Z Trim's all-natural products, among
other things, help to reduce fat and calories, add fiber, provide
shelf-stability, prevent oil migration, and add binding capacity
-- all without degrading the taste and texture of the final food
products.
Z Trim Holdings disclosed a net loss of $9.58 million in 2012
following a net loss of $6.94 million in 2011. The Company's
balance sheet at March 31, 2013, showed $5.60 million in total
assets, $8.85 million in total liabilities and a $3.25 million
total stockholders' deficit.
M&K CPAS, PLLC, in Houston, Texas, issued a "going concern"
qualification on the consolidated financial statements for the
year ended Dec. 31, 2012. The independent auditors noted that
the Company had a working capital deficit and reoccurring losses
as of Dec. 31, 2012. These conditions raise substantial doubt
about its ability to continue as a going concern.
ZUERCHER TRUST: Coleman Frost Relieved From Working on Case
-----------------------------------------------------------
The Hon. Hannah L. Blumenstiel of the U.S. Bankruptcy Court for
the Northern District of California authorized Coleman Frost LLP
to withdraw as counsel for The Zuercher Trust Of 1999.
Coleman Frost, including attorneys Derrick Coleman, Esq., and
James Bulger, Esq., and all other attorneys who through Coleman
Frost were relieved as counsel for the Debtor in the proceeding.
About The Zuercher Trust of 1999
San Mateo, California-based The Zuercher Trust of 1999 filed for
Chapter 11 bankruptcy (Bankr. N.D. Cal. Case No. 12-32747) on
Sept. 26, 2012. Bankruptcy Judge Hannah L. Blumenstiel presides
over the case. Derrick F. Coleman, Esq., at Coleman Frost LLP,
serves as the Debtor's counsel.
The Debtor, a business trust, estimated assets and debts of
$10 million to $50 million. The Debtor owns property in
621 S. Union Avenue, in Los Angeles. The property is currently in
REAP for alleged city health code violations.
In its schedules, the Debtor disclosed $28,450,000 in total assets
and $12,084,015 in total liabilities.
The petition was signed by Monica H. Hujazi, trustee.
As reported in the TCR on March 22, 2013, August B. Landis, Acting
U.S. Trustee for Region 17, obtained authorization from the U.S.
Bankruptcy Court to appoint Peter S. Kravitz as Chapter 11 Trustee
for The Zuercher Trust of 1999. Steven T. Gubner, Esq., and
Richard D. Burstein, Esq., at Ezra Brutzkus Gubner LLP, represent
Peter S. Kravitz, Chapter 11 Trustee for The Zuercher Trust of
1999, as bankruptcy counsel.
ZUERCHER TRUST: Dec. 5 Hearing on Employment of Madison Partners
----------------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of California
will convene a hearing on Dec. 5, 2013, at 10 a.m., to consider
the request of The Zuercher Trust of 1999 to employ Madison
Partners and ARA as real estate brokers.
On Oct. 28, Sterling Heatley, the minority co-owner of the mixed
use real property located at 2400-2424 Bayshore Boulevard, et al.,
San Francisco opposed the captioned application filed by the
Chapter 11 Trustee, Peter S. Kravitz. Mr. Heatley requested an
immediate hearing in the matter.
According to Sterling Heatley, the Court must deny the trustee's
prejudicial and prejudicially untimely broker application, not
only because the trustee has violated the Court's Sept. 11, 2013,
that sets forth the requirements for the broker application, but
also because the application makes no sense.
Sterling Heatley asserted that the trustee does not need two real
estate brokers to market and sell the property.
The trustee, in its motion, has requested for authorization to
employ Madison Partners, and Apartment Realty Advisors, as his
real estate brokers pursuant to the listing agreement. Madison
has proposed to engage ARA as sub-broker to handle local
activities related to the marketing and sale of the Bayshore
Property, with compensation to ARA to be paid from Madison's share
of the commission.
The trustee proposed to sell the Bayshore Property, which he
expects will be satisfied from the proceeds in the event of a
court-approved sale.
The listing agreement provides for a listing price of $3,425,000
and brokers have agreed to accept a 6% commission of the gross
sale price to be evenly divided between Madison and ARA (3%) and
the prospective buyer's agent (3%). In the event brokers are also
agents for the prospective buyer then brokers will be entitled to
the 3% commission otherwise paid to the third party agent, for a
total of 6% commission to be divided between Madison and ARA.
To the best of the trustee's knowledge, the firms are
"disinterested persons" as that term is defined in Section 101(14)
of the Bankruptcy Code.
About The Zuercher Trust of 1999
San Mateo, California-based The Zuercher Trust of 1999 filed for
Chapter 11 bankruptcy (Bankr. N.D. Cal. Case No. 12-32747) on
Sept. 26, 2012. Bankruptcy Judge Hannah L. Blumenstiel presides
over the case. Derrick F. Coleman, Esq., at Coleman Frost LLP,
serves as the Debtor's counsel.
The Debtor, a business trust, estimated assets and debts of
$10 million to $50 million. The Debtor owns property in
621 S. Union Avenue, in Los Angeles. The property is currently in
REAP for alleged city health code violations.
In its schedules, the Debtor disclosed $28,450,000 in total assets
and $12,084,015 in total liabilities.
The petition was signed by Monica H. Hujazi, trustee.
As reported in the TCR on March 22, 2013, August B. Landis, Acting
U.S. Trustee for Region 17, obtained authorization from the U.S.
Bankruptcy Court to appoint Peter S. Kravitz as Chapter 11 Trustee
for The Zuercher Trust of 1999. Steven T. Gubner, Esq., and
Richard D. Burstein, Esq., at Ezra Brutzkus Gubner LLP, represent
Peter S. Kravitz, Chapter 11 Trustee for The Zuercher Trust of
1999, as bankruptcy counsel.
* IRS-Blessed Retirement Plan Part of Ch. 7 Estate, Says 1st Circ.
------------------------------------------------------------------
Law360 reported that the First Circuit said on Nov. 25 that assets
held in individual retirement accounts and a profit-sharing plan
approved by the Internal Revenue Service must be added back into a
Massachusetts man's bankruptcy estate, citing transfers that ran
afoul of U.S. tax laws and half-truths told to the bankruptcy
court.
According to the report, an IRS audit that ultimately found
William M. Daniels' profit-sharing plan to be tax-exempt was not
tantamount to a presumption that the plan's assets were exempt
from his bankruptcy estate, especially when Daniels had concealed
several transactions.
The appellate case is Daniels v. Agin, et al., Case No. 12-2376
(1st Cir.).
* Study Finds 2005 Code Reform Reduced Recoveries
-------------------------------------------------
Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reports that "[c]reditors have done worse" since the bankruptcy
law was amended in 2005 to enhance recoveries, according to a
study by University of Maine School of Law Professor Lois R.
Lupica.
Mr. Rochelle related that in the study, funded by the American
Bankruptcy Institute, Lupica said the Bankruptcy Abuse Prevention
and Consumer Protection Act of 2005 was intended to prevent "the
discharge of debt consumers could afford to pay."
"The theory that there are can-pay debtors lurking in the shadows
was not confirmed by the data," Lupica said in an interview.
The professor said the 2005 law was designed to compel individual
bankrupts to pay more by restricting access to Chapter 7, where
creditors typically get nothing. The theory, according to Lupica,
was that more consumers would be forced into Chapter 13, where
creditors are often paid a portion of their debts through payment
programs spread over about five years.
Lupica found that recoveries by unsecured creditors after the 2005
law was enacted fell by "statistically significant" amounts under
both Chapters 13 and 7.
"There were no winners," Lupica said.
Creditor recoveries were lower in part because "administrative
expenses increased significantly," according to the study. Lupica
said there wasn't even the expected increase in recoveries by
secured creditors.
Lupica cited a study showing that Chapter 7 costs increased for
each bankrupt by an inflation-adjusted $488 after the 2005
amendments and by $667 in Chapter 13. The average fee for a
Chapter 7 filing rose 38 percent after the amendments and 63
percent for Chapter 13, she said.
"Some scholars have claimed that the credit lobby knew" recoveries
would decline in bankruptcy despite the changes, she said, citing
Professor Ronald J. Mann of Columbia Law School.
Rather than increase recoveries, the intention was to create a
"sweat box" by keeping individuals out of bankruptcy "to receive
the robust recoveries that seem to elude them once a consumer
files for bankruptcy relief," she said.
Lupica said she wasn't surprised by the findings.
"The data confirmed my intuition developed from speaking with
hundreds of bankruptcy trustees and judges," she said in an
interview.
* Supreme Court Takes on Third Bankruptcy Case This Term
--------------------------------------------------------
Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reports that the U.S. Supreme Court will decide next year whether
an inherited individual retirement account is protected from the
claims of creditors in bankruptcy.
According to the report, the Supreme Court on Nov. 26 said it will
resolve a split between two federal courts of appeal on the
question of whether an inherited IRA is an exempt asset that an
individual can retain despite filing bankruptcy.
Including the new case, Clark v. Rameker, the Supreme Court will
rule on three bankruptcy issues in the current term.
One of the other cases deals with whether someone can waive the
right to have certain disputes decided on a final basis by a life-
tenured federal district judge. The third concerns whether
bankruptcy judges have equity power to take property away that an
individual bankrupt otherwise would be entitled to retain as
exempt. These cases will be argued on Jan. 13 and Jan. 14.
The dispute involving inherited IRAs should be argued around late
March.
The split arose in April when the U.S. Court of Appeals in Chicago
ruled that inherited IRAs aren't exempt in bankruptcy and thus
belong to creditors. Last year, the federal appeals court in New
Orleans concluded that the "plain meaning" of the statutes made
inherited IRA's exempt.
While an IRA funded by the debtor's own contributions is immune
from creditor claims in bankruptcy, the case going to the Supreme
Court involves a bankrupt woman who inherited her deceased
mother's $300,000 account. After the daughter filed for
bankruptcy, the bankruptcy judge ruled that the IRA wasn't exempt.
The appeals court in Chicago concluded that the account should go
to creditors because it represented money the bankrupt could spend
readily.
The case on IRAs is Clark v. Rameker, 13-299, U.S. Supreme Court,
(Washington).
The case on waiver is Executive Benefits Insurance Agency v.
Arkison, 12-01200, U.S. Supreme Court.
The case on equity powers is Law v. Siegel, 12-5196, U.S. Supreme
Court (Washington).
* Fitch Says NJ Casino Market "Supply-Demand Imbalance" Remains
---------------------------------------------------------------
On Nov. 26, 2013, New Jersey became the most significant state to
commence online gambling operations due to its sizable population
and broader suite of available games compared to Nevada and
Delaware. Fitch Ratings believes this will be positive for market
participants, but will not single-handedly turn around the
Atlantic City casino market as its supply-demand imbalance
remains.
Initial revenue estimates by industry observers vary widely. Fitch
believes initial revenues will be hampered by the refusal of some
credit card companies to process online gambling transactions.
Fitch forecasts roughly $200-$300 million in NJ online gambling
revenues next year that may ramp up to $500-$750 million within
several years, well below Governor Christie's public forecast of
$1.2 billion.
Fitch believes notable winners will include the largest Atlantic
City (AC) casino operators with the best brands and databases
(Borgata and Caesars), European online gaming companies
(bwin.party and 888), and U.S. gaming content and platform
suppliers (IGT and Bally).
Losers are likely to be those participants that are slower to
market, have limited ability to invest or engage in promotional
activity, have limited customer databases, and/or have weak land-
based assets. These include Revel, Resorts and Atlantic Club,
which recently filed for bankruptcy. Prospects for mid tier
participants such as Tropicana, Trump, and Golden Nugget are more
variable and will ultimately be determined by the size of the
market and execution.
The degree to which participants benefit will vary and is
contingent upon a number of factors. These factors include the
various commercial agreements in place, the size and quality of
customer databases, ownership structure of the relevant entities,
the popularity and profitability of each website, and any
cannibalization of land-based casino revenue.
Ultimately, there is the potential for up to 60 websites, with
each of the 12 AC casinos granted up to five websites each. There
are 13 approved sites with full play options and another two
approved for limited play options. Fitch does not think the market
will support 60 websites, so speed to market, branding
initiatives, and promotional dollars will determine which ones
become profitable. This will likely be determined over the next 1-
2 years.
Although some market participants will benefit, New Jersey online
gambling is not going to be the savior of the AC casino market. In
some ways, it will be detrimental because it has kept brick and
mortar supply in the market when the level of demand dictates that
some supply should be removed. Annual AC gaming revenues have
declined from more than $5.0 billion in 2006 to roughly $2.8
billion currently due largely to the development of neighboring
markets, yet the number of casinos has remained flat as Revel
replaced Sands.
The prospect of online gaming has contributed to the supply-demand
imbalance in AC as it maintained interest in online gaming
licenses more so than physical casino assets. Fitch thinks it is
unlikely online gaming profits will be used to meaningfully
reinvest in AC's land-based assets and that some supply will shake
out over time.
Fitch maintains an issuer default rating (IDR) of 'B-' with a
Positive Rating Outlook on Marina District Finance Co. , which is
the entity that owns Borgata and is a 50/50 joint venture of Boyd
Gaming (IDR of 'B' with a Stable Rating Outlook) and MGM Resorts
Intl (IDR of 'B' with a Positive Rating Outlook). Fitch also
maintains IDRs of 'CCC' with a Negative Rating Outlooks on both
Caesars Entertainment Corp. and Caesars Entertainment Operating
Co.
Structural considerations will limit Borgata's credit benefits
because its online gaming profits will be split among venture
participants including MGM, Boyd Gaming, and bwin.party while
Caesars' online gaming assets are held outside of CEOC.
* Foreclosure Auction Sales & Bank-Owned Sales Up in October 2013
-----------------------------------------------------------------
RealtyTrac(R) on Nov. 26 released its October 2013 U.S.
Residential & Foreclosure Sales Report, which shows that U.S.
residential properties, including single family homes,
condominiums and townhomes, sold at an estimated annualized pace
of 5,649,965, a 2 percent increase from the previous month and up
13 percent from October 2012.
Despite the nationwide increase, home sales continued to decrease
on an annual basis for the third consecutive month in three
bellwether western states: California (down 15 from a year ago),
Arizona (down 13 percent), and Nevada (down 5 percent).
The national median sales price of all residential properties --
including both distressed and non-distressed sales -- was
$170,000, unchanged from September but up 6 percent from
October 2012, the 18th consecutive month median home prices have
increased on an annualized basis.
The median price of a distressed residential property -- in
foreclosure or bank owned -- was $110,000 in October, 41 percent
below the median price of $185,000 for a non-distressed property.
"After a surge in short sales in late 2011 and early 2012, the
favored disposition method for distressed properties is shifting
back toward the more traditional foreclosure auction sales and
bank-owned sales," said Daren Blomquist, vice president at
RealtyTrac. "The combination of rapidly rising home prices --
along with strong demand from institutional investors and other
cash buyers able to buy at the public foreclosure auction or an
as-is REO home -- means short sales are becoming less favorable
for lenders."
Other high-level findings from the report:
-- Short sales represented 5.3 percent of all sales, down
from 6.3 percent in the previous month and down from 11.2 percent
in October 2012.
-- States with the highest percentage of short sales in
October included Nevada (14.2 percent), Florida (13.6 percent),
Maryland (8.2 percent), Michigan (6.7 percent), and Illinois (6.2
percent).
-- Foreclosure auction sales to third parties -- a new
category separated out in the report for the first time in
October -- represented 2.5 percent of all sales, down from 2.8
percent in the previous month but nearly twice the 1.3 percent in
October 2012.
-- Markets with the highest percentage of foreclosure
auction sales included Orlando (8.6 percent), Jacksonville, Fla.,
(8.6 percent), Columbia, S.C. (8.1 percent), Las Vegas (6.6
percent), Charlotte (6.1 percent), Miami (6.0 percent), and Tampa
(5.7 percent).
-- REO sales accounted for 9.6 percent of all sales, up
from 8.9 percent in September and up from 9.4 percent in October
2012.
-- Markets with highest percentage of REO sales included
Stockton, Calif., (24.4 percent), Las Vegas (23.8 percent),
Cleveland (22.3 percent), Riverside-San Bernardino, Calif., (20.1
percent), Detroit (18.8 percent) and Phoenix (18.0 percent).
-- Cash sales represented 44.2 percent of all residential
sales in October, down from a revised 45.0 percent in September
but up from 33.9 percent in October 2012.
-- States with percentage of cash sales above the
national average included Florida (65.6 percent), Nevada (55.5
percent), Georgia (55.4 percent), South Carolina (53.9 percent),
North Carolina (49.9 percent), Michigan (49.5 percent) and Ohio
(49.2 percent).
-- Institutional investor purchases represented 6.8
percent of all sales in October, a sharp drop from a revised 12.1
percent in September and down from 9.7 percent a year ago.
-- Markets with the highest percentage of institutional
investor purchases included Memphis (25.4 percent), Atlanta (23.0
percent), Jacksonville, Fla., (22.2 percent), Charlotte (14.5
percent), and Milwaukee (12.0 percent).
-- Markets with biggest increase in median home price
included Detroit (up 38 percent), San Francisco (up 32 percent),
Sacramento (up 30 percent), Atlanta (up 30 percent), and
Jacksonville, Fla. (up 29 percent).
Report methodology
The RealtyTrac U.S. Residential Sales Report provides counts and
median prices for sales of residential properties nationwide, by
state and metropolitan statistical areas with a population of
500,000 or more. Data is also available at the county level upon
request. The report also provides a breakdown of cash sales,
institutional investor sales, short sales, bank-owned sales and
foreclosure auction sales to third parties. The data is derived
from recorded sales deeds and loan data, which is used to
determine cash sales and short sales. Sales counts for recent
months are projected based on seasonality and expected number of
sales records for those months that are not yet available from
public record sources but will be in the future given historical
patterns. Statistics for previous months are revised when each
new monthly report is issued as more deed data becomes available
for those previous months.
Important methodology note: Starting with this October report,
RealtyTrac has adjusted the methodology for the report as it
concerns short sales -- now applying a refined calculation to take
into account the true loan balance secured by a home at the time
of the sale, and additionally separating out of the short sale
classification properties that sell at the public foreclosure
auction short of the loan balance.
Related to this second change, RealtyTrac is now including a new
category of distressed sale in the report: third-party foreclosure
auction sales, which represent sales at the public foreclosure
auction to third parties other than the foreclosing lender.
Definitions Residential property sales: sales of single family
homes, condominiums/townhomes, and co-ops, not including multi-
family properties.
Annualized sales: an annualized estimate of the number of
residential property sales based on the actual number of sales
deeds received for the month, accounting for expected sales
records for that month that will be received in future months as
well as seasonality.
Distressed sales: sale of a residential property that is actively
in the foreclosure process or bank-owned when the sale is
recorded.
Distressed discount: percentage difference between the median
price of distressed sales and a non-distressed sales in a given
geographic area.
Bank-Owned sales: sales of residential properties that have been
foreclosed on and are owned by the foreclosing lender (bank).
Short sales: sales of residential properties where the sale price
is below the combined total of outstanding mortgages secured by
the property.
Foreclosure Auction sales: sale of a property at the public
foreclosure auction to a third party buyer that is not the
foreclosing lender.
All-cash purchases: sales where no loan is recorded at the time of
sale and where RealtyTrac has coverage of loan data.
Institutional investor purchases: residential property sales to
non-lending entities that purchased at least 10 properties in the
last 12 months.
About RealtyTrac Inc.
RealtyTrac -- http://www.realtytrac.com-- is a supplier of U.S.
real estate data, with more than 1.5 million active default,
foreclosure auction and bank-owned properties, and more than 1
million active for-sale listings on its website, which also
provides essential housing information for more than 100 million
homes nationwide. This information includes property
characteristics, tax assessor records, bankruptcy status and sales
history, along with 20 categories of key housing-related facts
provided by RealtyTrac's wholly-owned subsidiary, Homefacts(R).
RealtyTrac's foreclosure reports and other housing data are relied
on by the Federal Reserve, U.S. Treasury Department, HUD, numerous
state housing and banking departments, investment funds as well as
millions of real estate professionals and consumers, to help
evaluate housing trends and make informed decisions about real
estate.
* Foreign Companies Push Defaults Higher This Year
--------------------------------------------------
Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reports that defaults worldwide through October by 31 issuers
reached $17.4 billion, more than at the same time last year, as a
result of more defaults outside the U.S., according to a report
this week from Fitch Ratings.
According to Mr. Rochelle, citing the Fitch report, in the same
period last year, there were 25 defaults on $13.4 billion in debt.
The increase is attributable to $4.8 billion more in defaults
abroad, Fitch reported.
Except for senior secured debt, where the recovery rate this year
is up fractionally to 65.5 percent, recoveries on lower-ranking
debt are lower this year compared with 2012.
For senior unsecured debt, this year's 28.3 percent recovery is
down 34 percent from 2012. The 29.4 percent recovery on
subordinated debt this year is off 23 percent from last year.
* Revised Critera Puts S&P Ratings on 57 US Cos. on Watch Negative
------------------------------------------------------------------
Standard & Poor's Ratings Services said that it has reviewed its
ratings on the corporate industrial and utility companies that
were labeled as "under criteria observation" (UCO) after the
publishing of its revised corporate criteria on Nov. 19. The
ratings on 57 U.S. corporate entities were placed on CreditWatch
with positive implications as a result of this review, meaning
that they will likely be raised. At the same time, the ratings on
15 U.S. corporate entities were placed on CreditWatch with
negative implications, meaning that they will likely be lowered.
Over the weeks that follow, S&P will publish individual analytical
reports on the companies identified below to resolve these
CreditWatch listings.
With the completion of S&P's review, it will be removing the UCO
label on all corporate ratings. This includes those ratings that
we did not place on CreditWatch.
RATINGS LIST
US Issuer Ratings Placed On Watch Due To Revised Corp. Criteria
To From
3M Co.
Long-term rating AA-/Watch Pos/-- AA-/Stable/--
Short-term rating A-1+ A-1+
ACI Worldwide Inc. BB-/Watch Pos/-- BB-/Positive/--
Acuity Brands Inc. BBB-/Watch Pos/-- BBB-/Pos./--
Adobe Systems Inc. BBB+/Watch Pos/-- BBB+/Stable/--
Alabama Gas Corp. BBB/Watch Neg/-- BBB/Stable/--
Alaska Air Group Inc. BB/Watch Pos/-- BB/Stable/--
Alliant Holdings I LLC B-/Watch Pos/-- B-/Positive/--
Altera Corp. BBB+/Watch Pos/-- BBB+/Stable/--
Amsted Industries Inc. BB-/Watch Pos/-- BB-/Stable/--
Arizona Public Service Co. BBB+/Watch Pos/A-2 BBB+/Stable/A-2
B&G Foods Inc. B+/Watch Pos/-- B+/Stable/--
Cascade Natural Gas Corp. BBB+/Watch Neg/-- BBB+/Stable/--
CDW LLC B+/Watch Pos/-- B+/Stable/--
Chevron Phillips Chemical
Co. LLC BBB+/Watch Pos/A-2 BBB+/Stable/A-2
Cisco Systems Inc.
Long-term rating A+/Watch Pos/-- A+/Stable/--
Short-term rating A-1+ A-1+
CITGO Petroleum Corp. BB-/Watch Neg/-- BB-/Stable/--
Corning Inc. BBB+/Watch Pos/A-2 BBB+/Pos/A-2
CSG Systems Int'l. Inc. BB/Watch Pos/-- BB/Stable/--
Deer Park Refining L.P. A/Watch Neg/A-1 A/Stable/A-1
Delphi Automotive PLC BB+/Watch Pos/-- BB+/Positive/--
Delta Air Lines Inc. B+/Watch Pos/-- B+/Stable/--
Diamond Offshore Drilling Inc. A-/Watch Pos/-- A-/Stable/--
EMCOR Group Inc. BB+/Watch Pos/-- BB+/Stable/--
Energen Corp. BBB/Watch Neg/-- BBB/Stable/--
Estee Lauder Cos. Inc. (The) A/Watch Pos/A-1 A/Stable/A-1
Flint Hills Resources LLC
Long-term rating A+/Watch Pos/-- A+/Stable/--
Short-term rating A-1+ A-1+
FLIR Systems Inc. BBB-/Watch Pos/-- BBB-/Stable/--
Georgia-Pacific LLC A/Watch Pos/A-1 A/Stable/A-1
Green Mountain Power Corp. BBB/Watch Pos/-- BBB/Stable/--
Igloo Holdings Corp. B/Watch Pos/-- B/Stable/--
Ikaria Inc. B/Watch Neg/-- B/Stable/--
Indianapolis Power & Light Co. BBB-/Watch Neg/-- BBB-/Stable/--
Integra Telecom Inc. B/Watch Pos/-- B/Stable/--
Int'l. Transmission Co. BBB+/Watch Pos/-- BBB+/Stable/--
INVISTA B.V. BBB-/Watch Neg/-- BBB-/Stable/--
IPALCO Enterprises Inc. BBB-/Watch Neg/-- BBB-/Stable/--
ITC Great Plains LLC BBB+/Watch Pos/-- BBB+/Stable/--
ITC Holdings Corp. BBB+/Watch Pos/-- BBB+/Stable/--
ITC Midwest LLC BBB+/Watch Pos/-- BBB+/Stable/--
Kaman Corp. BBB-/Watch Neg/-- BBB-/Stable/--
Laboratory Corp. of
America Holdings BBB/Watch Pos/-- BBB/Stable/--
Macy's Inc. BBB/Watch Pos/-- BBB/Stable/--
MedAssets Inc. B+/Watch Pos/-- B+/Stable/--
Medtronic Inc.
Long-term rating A+/Watch Pos/-- A+/Stable/--
Short-term rating A-1+ A-1+
Michigan Electric
Transmission Co. BBB+/Watch Pos/-- BBB+/Stable/--
Motiva Enterprises LLC A/Watch Neg/A-1 A/Stable/A-1
National Oilwell Varco Inc. A/Watch Pos/A-1 A/Stable/A-1
Neenah Paper Inc. BB-/Watch Pos/-- BB-/Stable/--
Northern Natural Gas Co. A/Watch Neg/-- A/Negative/--
Pinnacle West Capital Corp. BBB+/Watch Pos/A-2 BBB+/Stable/A-2
Polyone Corp. BB-/Watch Pos/-- BB-/Stable/--
Polypore International Inc. B+/Watch Pos/-- B+/Positive/--
Potlatch Corp. BB+/Watch Pos/-- BB+/Stable/--
Puget Energy Inc. BB+/Watch Pos/-- BB+/Stable/--
Republic Services Inc. BBB/Watch Pos/A-2 BBB/Stable/A-2
Res-Care Inc. B+/Watch Pos/-- B+/Stable/--
Rosetta Resources Inc. B+/Watch Pos/-- B+/Stable/--
Sealed Air Corp. BB-/Watch Pos/-- BB-/Stable/--
SEMCO Energy Inc. BBB/Watch Neg/-- BBB/Stable/--
Shell Energy North
America (US) L.P. A-/Watch Pos/-- A-/Stable/--
Steward Health Care System LLC B/Watch Neg/-- B/Stable/--
Telecommunications Management
LLC (d/b/a NewWave
Communications) B+/Watch Neg/-- B+/Stable/--
TJX Companies Inc. A/Watch Pos/A-1 A/Stable/A-1
Triumph Group Inc. BB/Watch Pos/-- BB/Stable/--
TW Telecom Inc. BB-/Watch Pos/-- BB-/Stable/--
Union Pacific Corp. A-/Watch Pos/A-2 A-/Stable/A-2
United Rentals Inc. B+/Watch Pos/-- B+/Pos./--
Ventas Inc. BBB/Watch Pos/-- BBB/Pos./--
Waste Management Inc. BBB/Watch Pos/A-2 BBB/Stable/A-2
Wisconsin Gas LLC A-/Watch Pos/A-2 A-/Stable/A-2
Wrigley (WM) Jr. Company BBB/Watch Pos/-- BBB/Stable/--
Xerox Corp. BBB-/Watch Pos/A-3 BBB-/Stable/A-3
* Volatile Loan Securities Are Luring Fund Managers Again
---------------------------------------------------------
Matt Wirz, writing for The Wall Street Journal, reported that
investment funds aimed at individual investors are barreling into
collateralized loan obligations, a complex and volatile type of
security that was shaken by the financial crisis.
According to the report, lured by annual returns of as high as
20%, some mutual-fund managers are buying CLOs through investment
funds that purchase stakes in loans to companies with low credit
ratings. Another type of loan investment fund, business-
development companies, also have begun buying CLOs, according to
securities filings.
The biggest buyers of these securities usually are hedge funds,
insurers and banks, the report said. But mutual funds and
business-development companies, which pitch themselves to
individual, or retail, investors, have collected more than $60
billion in money from clients this year, according to Keefe,
Bruyette & Woods, Inc. and fund-data provider Lipper.
CLO returns are higher than on corporate bonds and other loans,
but CLO prices could plunge if the risk rises that companies will
run into trouble repaying their loans, the report noted.
That happened in 2011, and some fund managers say retail investors
are mostly unaware that the firms they invest in are buying CLOs,
the report added.
* Recent Small-Dollar & Individual Chapter 11 Filings
-----------------------------------------------------
In re Paul Verdugo
Bankr. D. Ariz. Case No. 13-20072
Chapter 11 Petition filed November 19, 2013
In re 10835 LARCH, LLC
Bankr. E.D. Cal. Case No. 13-34742
Chapter 11 Petition filed November 19, 2013
See http://bankrupt.com/misc/caeb13-34742.pdf
represented by: Richard G. Hyppa, Esq.
In re Joseph Afshari
Bankr. S.D. Cal. Case No. 13-11224
Chapter 11 Petition filed November 19, 2013
In re Construction Insight, Inc.
Bankr. D. Conn. Case No. 13-22355
Chapter 11 Petition filed November 19, 2013
See http://bankrupt.com/misc/ctb13-22355.pdf
represented by: Gregory F. Arcaro, Esq.
GRAFSTEIN & ARCARO, LLC
E-mail: garcaro@grafsteinlaw.com
In re Michael Santos
Bankr. M.D. Fla. Case No. 13-6895
Chapter 11 Petition filed November 19, 2013
In re Wilson Garcon
Bankr. S.D. Fla. Case No. 13-37795
Chapter 11 Petition filed November 19, 2013
In re Marketing IV, Inc.
Bankr. N.D. Ill. Case No. 13-44895
Chapter 11 Petition filed November 19, 2013
See http://bankrupt.com/misc/ilnb13-44895.pdf
represented by: Richard G. Larsen, Esq.
SPRINGER BROWN, LLC
E-mail: rlarsen@springerbrown.com
In re Demitrios Gountanis
Bankr. N.D. Ill. Case No. 13-44901
Chapter 11 Petition filed November 19, 2013
In re Kevin Raber
Bankr. D. Md. Case No. 13-29540
Chapter 11 Petition filed November 19, 2013
In re Sandra Defilippi-Raber
Bankr. D. Md. Case No. 13-29540
Chapter 11 Petition filed November 19, 2013
In re MH Holdings II, LLC
Bankr. D. Nev. Case No. 13-19718
Chapter 11 Petition filed November 19, 2013
See http://bankrupt.com/misc/nvb13-19718.pdf
represented by: Timothy P. Thomas, Esq.
LAW OFFICES OF TIMOTHY P. THOMAS, LLC
E-mail: tthomas@tthomaslaw.com
In re Ideal Tile of Ocean, Inc.
Bankr. D. N.J. Case No. 13-35406
Chapter 11 Petition filed November 19, 2013
See http://bankrupt.com/misc/njb13-35406.pdf
represented by: Andrew J. Kelly, Esq.
KELLY & BRENNAN, P.C.
E-mail: akelly@kbtlaw.com
In re Demar Jonkin, Inc.
aka Wantagh Bootery
Bankr. E.D.N.Y. Case No. 13-75861
Chapter 11 Petition filed November 19, 2013
See http://bankrupt.com/misc/nyeb13-75861.pdf
Filed as Pro Se
In re Dean Morehouse
Bankr. W.D. Pa. Case No. 13-11399
Chapter 11 Petition filed November 19, 2013
In re Land Ventures, Inc.
Bankr. W.D. Pa. Case No. 13-11403
Chapter 11 Petition filed November 19, 2013
See http://bankrupt.com/misc/pawb13-11403.pdf
represented by: Gary V. Skiba, Esq.
YOCHIM, SKIBA & NASH
E-mail: gskiba@yochim.com
In re Commercial Recovery Systems, Inc.
Bankr. E.D. Tex. Case No. 13-42788
Chapter 11 Petition filed November 19, 2013
See http://bankrupt.com/misc/txeb13-42788.pdf
represented by: Joyce W. Lindauer, Esq.
E-mail: courts@joycelindauer.com
In re Sunshine Industries, Inc.
Bankr. D. Ariz. Case No. 13-20156
Chapter 11 Petition filed November 20, 2013
See http://bankrupt.com/misc/azb13-20156.pdf
represented by: Eric Slocum Sparks, Esq.
ERIC SLOCUM SPARKS, P.C.
E-mail: law@ericslocumsparkspc.com
In re Kim Laube
Bankr. C.D. Cal. Case No. 13-17331
Chapter 11 Petition filed November 20, 2013
In re Kim Laube & Co., Inc.
Bankr. C.D. Cal. Case No. 13-17332
Chapter 11 Petition filed November 20, 2013
See http://bankrupt.com/misc/cacb13-17332.pdf
represented by: Lewis R. Landau, Esq.
HORGAN ROSEN BECKHAM & COREN, LLP
E-mail: LLandau@HorganRosen.com
In re Nolan Ulmer
Bankr. D. Colo. Case No. 13-29319
Chapter 11 Petition filed November 20, 2013
In re Patricia Ulmer
Bankr. D. Colo. Case No. 13-29319
Chapter 11 Petition filed November 20, 2013
In re Marie Damico
Bankr. M.D. Fla. Case No. 13-6918
Chapter 11 Petition filed November 20, 2013
In re Metaugus, Inc.
Bankr. N.D. Ga. Case No. 13-43341
Chapter 11 Petition filed November 20, 2013
See http://bankrupt.com/misc/ganb13-43341.pdf
represented by: Martha A. Miller, Esq.
SCHULTEN, WARD & TURNER
E-mail: mam@swtlaw.com
In re Dana Collins
Bankr. S.D. Ga. Case No. 13-42154
Chapter 11 Petition filed November 20, 2013
In re TJF Corporation
dba Red Mango
Bankr. N.D. Ill. Case No. 13-44957
Chapter 11 Petition filed November 20, 2013
See http://bankrupt.com/misc/ilnb13-44957.pdf
represented by: James J. Burns, Jr., Esq.
BURNS & WINCEK, LTD.
E-mail: bandwlaw@sbcglobal.net
In re O'Oliver Corporation
Bankr. N.D. Ill. Case No. 13-44958
Chapter 11 Petition filed November 20, 2013
See http://bankrupt.com/misc/ilnb13-44958.pdf
represented by: James J. Burns, Jr., Esq.
BURNS & WINCEK, LTD.
E-mail: bandwlaw@sbcglobal.net
In re Arsenal Investments, LLC
Bankr. S.D. Ind. Case No. 13-12250
Chapter 11 Petition filed November 20, 2013
See http://bankrupt.com/misc/insb13-12250.pdf
represented by: Michael Stephen Mahoney, Esq.
MAHONEY LAW
E-mail: mahoneylawindiana@gmail.com
In re Magnolia Cleaners of Brandon, Inc.
dba Aqua Clean
The Tuxedo Shop
Bankr. S.D. Miss. Case No. 13-03474
Chapter 11 Petition filed November 20, 2013
See http://bankrupt.com/misc/mssb14-03474.pdf
represented by: Eileen N. Shaffer, Esq.
E-mail: enslaw@bellsouth.net
In re 32 Group Land Development, LLC
Bankr. D. Nev. Case No. 13-19776
Chapter 11 Petition filed November 20, 2013
See http://bankrupt.com/misc/nvb13-19776.pdf
represented by: Zachariah Larson, Esq.
LARSON & ZIRZOW
E-mail: carey@lzlawnv.com
In re Robert Romanoff
Bankr. S.D.N.Y. Case No. 13-23897
Chapter 11 Petition filed November 20, 2013
In re 401 Columbus Associates LLC
Bankr. S.D.N.Y. Case No. 13-23900
Chapter 11 Petition filed November 20, 2013
See http://bankrupt.com/misc/nysb13-23900.pdf
represented by: Anne J. Penachio, Esq.
PENACHIO MALARA, LLP
E-mail: apenachio@pmlawllp.com
In re Biomoda, Inc.
Bankr. D. N.M. Case No. 13-13768
Chapter 11 Petition filed November 20, 2013
See http://bankrupt.com/misc/nmb13-13768.pdf
represented by: Deron B. Knoner, Esq.
KELEHER & MCLEOD, P.A.
E-mail: dbk@keleher-law.com
In re SUV, Inc.
dba Dallas Auto Sports
Bankr. N.D. Tex. Case No. 13-35988
Chapter 11 Petition filed November 20, 2013
See http://bankrupt.com/misc/txnb13-35988.pdf
represented by: Eric A. Liepins, Esq.
ERIC A. LIEPINS, P.C.
E-mail: eric@ealpc.com
In re GCG Enterprises, Inc.
Bankr. N.D. Tex. Case No. 13-35996
Chapter 11 Petition filed November 20, 2013
See http://bankrupt.com/misc/txnb13-35996.pdf
represented by: Vickie L. Driver, Esq.
COFFIN & DRIVER, PLLC
E-mail: vdriver@coffindriverlaw.com
In re James Jessee
Bankr. E.D. Va. Case No. 13-15224
Chapter 11 Petition filed November 20, 2013
In re Irfan Jameel
Bankr. E.D. Va. Case No. 13-74358
Chapter 11 Petition filed November 20, 2013
In re Terry Robinson
Bankr. E.D. Va. Case No. 13-74364
Chapter 11 Petition filed November 20, 2013
In re Gary Stevens
Bankr. W.D. Wash. Case No. 13-20173
Chapter 11 Petition filed November 20, 2013
In re Jacob Buttnick
aka Jack Buttnick
Bankr. W.D. Wash. Case No. 13-20151
Chapter 11 Petition filed November 20, 2013
See http://bankrupt.com/misc/wawb13-20151.pdf
represented by: Jason E. Anderson, Esq.
LAW OFFICE OF JASON E. ANDERSON
E-mail: jason@jasonandersonlaw.com
In re Robert Schiff
Bankr. C.D. Cal. Case No. 13-37866
Chapter 11 Petition filed November 21, 2013
In re UIV Properties RS, LLC
Bankr. D. Colo. Case No. 13-29368
Chapter 11 Petition filed November 21, 2013
See http://bankrupt.com/misc/cob13-29368.pdf
represented by: Lee M. Kutner, Esq.
KUTNER BRINEN GARBER, P.C.
E-mail: lmk@kutnerlaw.com
In re NPK Water Holding, LLC
Bankr. D. Colo. Case No. 13-29369
Chapter 11 Petition filed November 21, 2013
See http://bankrupt.com/misc/cob13-29369.pdf
represented by: Lee M. Kutner, Esq.
KUTNER BRINEN GARBER, P.C.
E-mail: lmk@kutnerlaw.com
In re NPK Investments, LLC
Bankr. D. Colo. Case No. 13-29371
Chapter 11 Petition filed November 21, 2013
See http://bankrupt.com/misc/cob13-29371.pdf
represented by: Lee M. Kutner, Esq.
KUTNER BRINEN GARBER, P.C.
E-mail: lmk@kutnerlaw.com
In re Robert Maxwell
Bankr. D. Conn. Case No. 13-51826
Chapter 11 Petition filed November 21, 2013
In re Patricia Maxwell
Bankr. D. Conn. Case No. 13-51826
Chapter 11 Petition filed November 21, 2013
In re SNIIIC Two, LLC
Bankr. M.D. Fla. Case No. 13-14308
Chapter 11 Petition filed November 21, 2013
See http://bankrupt.com/misc/flmb13-14308.pdf
represented by: David J. Pedersen, Esq.
LAW OFFICE OF DAVID J. PEDERSEN
E-mail: djpedersen@cfl.rr.com
In re Vaccines On The Go, Inc.
Bankr. N.D. Ga. Case No. 13-23257
Chapter 11 Petition filed November 21, 2013
See http://bankrupt.com/misc/ganb13-23257.pdf
represented by: Paul Reece Marr, Esq.
PAUL REECE MARR, P.C.
E-mail: paul@paulmarr.com
In re Metro Home Health Care Network, Inc.
Bankr. E.D. Mich. Case No. 13-61253
Chapter 11 Petition filed November 21, 2013
See http://bankrupt.com/misc/mieb13-61253.pdf
represented by: Salvatore A. Barbatano, Esq.
WILLIAMS, WILLIAMS, RATTNER & PLUNKETT,
P.C.
E-mail: salbarbatano@gmail.com
In re Metro Home Health Care Plans, Inc.
Bankr. E.D. Mich. Case No. 13-61254
Chapter 11 Petition filed November 21, 2013
See http://bankrupt.com/misc/mieb13-61254.pdf
represented by: Salvatore A. Barbatano, Esq.
WILLIAMS, WILLIAMS, RATTNER & PLUNKETT,
P.C.
E-mail: salbarbatano@gmail.com
In re Tam Nguyen
Bankr. D. Nev. Case No. 13-19796
Chapter 11 Petition filed November 21, 2013
In re Con-Con Corporation
dba Seven Seas Restaurant & Lounge
Bankr. D. Nev. Case No. 13-19818
Chapter 11 Petition filed November 21, 2013
See http://bankrupt.com/misc/nvb13-19818.pdf
represented by: Dan M. Winder, Esq.
LAW OFFICE OF DAN M. WINDER, P.C.
E-mail: winderdandocket@aol.com
In re 531 Sutter Ave LLC
Bankr. E.D.N.Y. Case No. 13-46960
Chapter 11 Petition filed November 21, 2013
See http://bankrupt.com/misc/nyeb13-46960.pdf
Filed as Pro Se
In re Gene Branca
Bankr. S.D.N.Y. Case No. 13-23915
Chapter 11 Petition filed November 21, 2013
In re William Smith
Bankr. E.D.N.C. Case No. 13-07253
Chapter 11 Petition filed November 21, 2013
In re Anthony Smith
Bankr. E.D.N.C. Case No. 13-07287
Chapter 11 Petition filed November 21, 2013
In re The Neff Volunteer Fire Department
aka NVFD
The Neff's Volunteer Fire Department
The Neffs Volunteer Fire Department
Neff's Volunteer Fire Department
Neff Volunteer Fire Department
Neffs Volunteer Fire Department
Bankr. S.D. Ohio Case No. 13-59245
Chapter 11 Petition filed November 21, 2013
See http://bankrupt.com/misc/ohsb13-59245.pdf
represented by: Arnold S. White, Esq.
WHITE & FISH LPA, INC.
E-mail: awhite@centralohioattorneys.com
In re Irish Restaurants LP
dba Coakley's Restaurant & Pub
Bankr. M.D. Pa. Case No. 13-05990
Chapter 11 Petition filed November 21, 2013
See http://bankrupt.com/misc/pamb13-05990.pdf
represented by: Lawrence G. Frank, Esq.
THOMAS LONG NIESEN & KENNARD
E-mail: lawrencegfrank@gmail.com
In re Alvin E. Willingham, Inc.
dba Vision Masters
Bankr. E.D. Tenn. Case No. 13-15912
Chapter 11 Petition filed November 21, 2013
See http://bankrupt.com/misc/tneb13-15912.pdf
represented by: Rebecca L. Hicks, Esq.
E-mail: hickslaw@volstate.net
In re MSR Enterprises Inc.
dba Midas Hixson
fdba Midas Pleasantview
Midas Winchester
Bankr. E.D. Tenn. Case No. 13-15915
Chapter 11 Petition filed November 21, 2013
See http://bankrupt.com/misc/tneb13-15915.pdf
represented by: W. Thomas Bible, Jr., Esq.
LAW OFFICE OF W. THOMAS BIBLE, JR.
E-mail: wtbibleecf@gmail.com
In re Sun Down River Development, LLC
Bankr. S.D. W.Va. Case No. 13-30578
Chapter 11 Petition filed November 21, 2013
See http://bankrupt.com/misc/wvsb13-30578.pdf
Filed as Pro Se
In re Charles Rogers
Bankr. S.D. Ala. Case No. 13-04147
Chapter 11 Petition filed November 25, 2013
In re Jam Restaurant Group, LLC
Bankr. D. Ariz. Case No. 13-20412
Chapter 11 Petition filed November 25, 2013
See http://bankrupt.com/misc/azb13-20412.pdf
represented by: Carlos M. Arboleda, Esq.
ARBOLEDA BRECHNER
E-mail: arboledac@abfirm.com
In re Paschal, Inc.
Bankr. C.D. Cal. Case No. 13-19571
Chapter 11 Petition filed November 25, 2013
See http://bankrupt.com/misc/cacb13-19571.pdf
represented by: Thomas J. Polis, Esq.
POLIS & ASSOCIATES, APLC
E-mail: tom@polis-law.com
In re Campo, Inc.
dba Alternative Senior Care
Bankr. C.D. Cal. Case No. 13-19574
Chapter 11 Petition filed November 25, 2013
See http://bankrupt.com/misc/cacb13-19574.pdf
represented by: Thomas J. Polis, Esq.
POLIS & ASSOCIATES, APLC
E-mail: tom@polis-law.com
In re Gatton, Inc.
dba Alternative Senior Care, Inc.
Bankr. C.D. Cal. Case No. 13-19576
Chapter 11 Petition filed November 25, 2013
See http://bankrupt.com/misc/cacb13-19576.pdf
represented by: Thomas J. Polis, Esq.
POLIS & ASSOCIATES, APLC
E-mail: tom@polis-law.com
In re D-Tag Enterprises, Inc.
dba Alternative Senior Care
Bankr. C.D. Cal. Case No. 13-19577
Chapter 11 Petition filed November 25, 2013
See http://bankrupt.com/misc/cacb13-19577.pdf
represented by: Thomas J. Polis, Esq.
POLIS & ASSOCIATES, APLC
E-mail: tom@polis-law.com
In re Alternative Senior Care, Inc.
aw D-Tag, Inc.
Campo, Inc.
Paschal, Inc.
dba Gatton, Inc.
Bankr. C.D. Cal. Case No. 13-19578
Chapter 11 Petition filed November 25, 2013
See http://bankrupt.com/misc/cacb13-19578.pdf
represented by: Thomas J. Polis, Esq.
POLIS & ASSOCIATES, APLC
E-mail: tom@polis-law.com
In re Whitt's Tow Away, Inc.
Bankr. S.D. Fla. Case No. 13-38182
Chapter 11 Petition filed November 25, 2013
See http://bankrupt.com/misc/flsb13-38182.pdf
represented by: David S. Abrams, Esq.
ABRAMS & ABRAMS, P.A.
E-mail: salvador@abramslaw.cc
In re Mega, Inc.
Bankr. S.D. Fla. Case No. 13-38225
Chapter 11 Petition filed November 25, 2013
See http://bankrupt.com/misc/flsb13-38225.pdf
represented by: Brett A. Elam, Esq.
THE LAW OFFICES OF BRETT A. ELAM, P.A.
E-mail: belam@brettelamlaw.com
In re Reuben Mike Durst, PC
dba Broad Street Dental
Bankr. N.D. Ga. Case No. 13-75609
Chapter 11 Petition filed November 25, 2013
See http://bankrupt.com/misc/ganb13-75609.pdf
represented by: Edward F. Danowitz, Jr., Esq.
DANOWITZ & ASSOCIATES, P.C.
Email: edanowitz@danowitzlegal.com
In re C.J.P. Restaurant Corp.
Bankr. D. Mass. Case No. 13-16851
Chapter 11 Petition filed November 25, 2013
In re Kenneth Shrkeli
Bankr. D. Mass. Case No. 13-16851
Chapter 11 Petition filed November 25, 2013
See http://bankrupt.com/misc/mab13-16851.pdf
represented by: Robert W. Kovacs, Jr., Esq.
LAW OFFICE OF ROBERT W. KOVACS, JR.
E-mail: bknotices@rkovacslaw.com
In re Shabra Properties, LLC
Bankr. E.D. Mich. Case No. 13-61465
Chapter 11 Petition filed November 25, 2013
See http://bankrupt.com/misc/mieb13-61465.pdf
represented by: Kurt Thornbladh, Esq.
THORNBLADH LEGAL GROUP, PLLC
E-mail: kthornbladh@gmail.com
In re Zita Auto, LLC
Bankr. E.D. Mich. Case No. 13-61467
Chapter 11 Petition filed November 25, 2013
See http://bankrupt.com/misc/mieb13-61467.pdf
represented by: Kurt Thornbladh, Esq.
THORNBLADH LEGAL GROUP, PLLC
E-mail: kthornbladh@gmail.com
In re GR&W Enterprises, LLC
dba L & P Durable Medical Equipment
Bankr. N.D. Miss. Case No. 13-14957
Chapter 11 Petition filed November 25, 2013
See http://bankrupt.com/misc/msnb13-14957.pdf
represented by: Robert Gambrell, Esq.
GAMBRELL & ASSOCIATES, PLLC
E-mail: rg@ms-bankruptcy.com
In re Ad Holdings, LLC
Bankr. D. Nev. Case No. 13-52247
Chapter 11 Petition filed November 25, 2013
See http://bankrupt.com/misc/nvb13-52247.pdf
represented by: Stephen R. Harris, Esq.
HARRIS LAW PRACTICE, LLC
E-mail: steve@harrislawreno.com
In re The Tile Outlet Corp. Inc.
Bankr. D. P.R. Case No. 13-09747
Chapter 11 Petition filed November 25, 2013
See http://bankrupt.com/misc/prb13-09747.pdf
represented by: Isabel M. Fullana, Esq.
GARCIA ARREGUI & FULLANA, PSC
E-mail: isabelfullana@gmail.com
In re Azulejos & Ceramicas
Bankr. D. P.R. Case No. 13-09748
Chapter 11 Petition filed November 25, 2013
See http://bankrupt.com/misc/prb13-09748.pdf
represented by: Isabel M. Fullana, Esq.
GARCIA ARREGUI & FULLANA, PSC
E-mail: isabelfullana@gmail.com
In re Ezequiel Vazquez Toro
Bankr. D. P.R. Case No. 13-09759
Chapter 11 Petition filed November 25, 2013
In re Joseph Wardell
Bankr. E.D. Tenn. Case No. 13-52017
Chapter 11 Petition filed November 25, 2013
In re Pettit Oil Company
Bankr. W.D. Wash. Case No. 13-47285
Chapter 11 Petition filed November 25, 2013
See http://bankrupt.com/misc/wawb13-47285.pdf
represented by: Brian L. Budsberg, Esq.
BUDSBERG LAW GROUP, PLLC
E-mail: paralegal@budsberg.com
In re Zulki Corporation
Bankr. C.D. Cal. Case No. 13-19586
Chapter 11 Petition filed November 26, 2013
See http://bankrupt.com/misc/cacb13-19586.pdf
represented by: Robert M. Yaspan, Esq.
LAW OFFICES OF ROBERT M. YASPAN
E-mail: court@yaspanlaw.com
In re Rock Petroleum Inc.
Bankr. C.D. Cal. Case No. 13-19608
Chapter 11 Petition filed November 26, 2013
See http://bankrupt.com/misc/cacb13-19608.pdf
Filed as Pro Se
In re Beauty Health & Science Innovations, Inc.
Bankr. C.D. Cal. Case No. 13-38210
Chapter 11 Petition filed November 26, 2013
See http://bankrupt.com/misc/cacb13-38210.pdf
represented by: Thomas J. Polis, Esq.
POLIS & ASSOCIATES, APLC
E-mail: tom@polis-law.com
In re Perry Mincey
Bankr. S.D. Ga. Case No. 13-42203
Chapter 11 Petition filed November 26, 2013
In re Modern Sports, Inc.
dba Modern Skate & Surf
Bankr. E.D. Mich. Case No. 13-61542
Chapter 11 Petition filed November 26, 2013
See http://bankrupt.com/misc/mieb13-61542.pdf
represented by: Michael P. DiLaura, Esq.
MIKE DILAURA & ASSOCIATES, P.C.
E-mail: miked@mikedlaw.com
In re 29862 Woodward, LLC
Bankr. E.D. Mich. Case No. 13-61543
Chapter 11 Petition filed November 26, 2013
See http://bankrupt.com/misc/mieb13-61543.pdf
represented by: Michael P. DiLaura, Esq.
MIKE DILAURA & ASSOCIATES, P.C.
E-mail: miked@mikedlaw.com
In re Minnesota Center for Obesity, Metabolism & Endocrinology,
P.A.
Bankr. D. Minn. Case No. 13-35654
Chapter 11 Petition filed November 26, 2013
See http://bankrupt.com/misc/mnb13-35654.pdf
represented by: Steven B. Nosek, Esq.
STEVEN B. NOSEK, P.A.
E-mail: snosek@noseklawfirm.com
In re Cardinal Tank Corp.
Bankr. E.D.N.Y. Case No. 13-47068
Chapter 11 Petition filed November 26, 2013
See http://bankrupt.com/misc/nyeb13-47068.pdf
represented by: Salvatore LaMonica, Esq.
LAMONICA HERBST AND MANISCALCO, LLP
E-mail: sl@lhmlawfirm.com
In re Cardinal Boiler & Tank Corp.
Bankr. E.D.N.Y. Case No. 13-47069
Chapter 11 Petition filed November 26, 2013
See http://bankrupt.com/misc/nyeb13-47069.pdf
represented by: Salvatore LaMonica, Esq.
LAMONICA HERBST AND MANISCALCO, LLP
E-mail: sl@lhmlawfirm.com
In re Manhattan Boiler & Equipment Corp.
Bankr. E.D.N.Y. Case No. 13-47073
Chapter 11 Petition filed November 26, 2013
See http://bankrupt.com/misc/nyeb13-47073.pdf
represented by: Salvatore LaMonica, Esq.
LAMONICA HERBST AND MANISCALCO, LLP
E-mail: sl@lhmlawfirm.com
In re Cardinal Fibreglass Industries, Inc.
Bankr. E.D.N.Y. Case No. 13-47075
Chapter 11 Petition filed November 26, 2013
See http://bankrupt.com/misc/nyeb13-47075.pdf
represented by: Salvatore LaMonica, Esq.
LAMONICA HERBST AND MANISCALCO, LLP
E-mail: sl@lhmlawfirm.com
In re Mackler Plumbing & Heating Co. Inc.
Bankr. E.D.N.Y. Case No. 13-47083
Chapter 11 Petition filed November 26, 2013
See http://bankrupt.com/misc/nyeb13-47083.pdf
represented by: Dennis Leonardi, Esq.
E-mail: DSLCPAESQ@aol.com
In re Superior Home Services, Inc.
Bankr. W.D. Pa. Case No. 13-24996
Chapter 11 Petition filed November 26, 2013
See http://bankrupt.com/misc/pawb13-24996.pdf
represented by: Christopher M. Frye, Esq.
STEIDL & STEINBERG, P.C.
E-mail: chris.frye@steidl-steinberg.com
In re Beverly Gruarin
Bankr. W.D. Pa. Case No. 13-25009
Chapter 11 Petition filed November 26, 2013
In re Carlos Hernandez Machado
Bankr. D. P.R. Case No. 13-09833
Chapter 11 Petition filed November 26, 2013
In re SMY Holdings, LLC
Bankr. E.D. Va. Case No. 13-15293
Chapter 11 Petition filed November 26, 2013
See http://bankrupt.com/misc/vaeb13-15293.pdf
represented by: Robert Sergio Brandt, Esq.
THE LAW FIRM OF ROBERT S. BRANDT
E-mail: brandt@brandtlawfirm.com
*********
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.
A list of Meetings, Conferences and Seminars appears in each
Wednesday's edition of the TCR. Submissions about insolvency-
related conferences are encouraged. Send announcements to
conferences@bankrupt.com/
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.
For copies of court documents filed in the District of Delaware,
please contact Vito at Parcels, Inc., at 302-658-9911. For
bankruptcy documents filed in cases pending outside the District
of Delaware, contact Ken Troubh at Nationwide Research &
Consulting at 207/791-2852.
*********
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, Ronald C. Sy, Joel Anthony G. Lopez, Cecil R.
Villacampa, Sheryl Joy P. Olano, Ivy B. Magdadaro, Carlo
Fernandez, Christopher G. Patalinghug, and Peter A. Chapman,
Editors.
Copyright 2013. All rights reserved. ISSN: 1520-9474.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers. Information contained
herein is obtained from sources believed to be reliable, but is
not guaranteed.
The TCR subscription rate is $975 for 6 months delivered via
e-mail. Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance thereof
are $25 each. For subscription information, contact Peter A.
Chapman at 215-945-7000 or Nina Novak at 202-241-8200.
*** End of Transmission ***