/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/140107.mbx T R O U B L E D C O M P A N Y R E P O R T E R Tuesday, January 7, 2014, Vol. 18, No. 6 Headlines 11850 DEL PUEBLO: Court Okays Sale of Assets to JPV 261 EAST: Plan Outline Okayed, Jan. 28 Confirmation Hearing Set 515 SPOKANE: Case Summary & 10 Unsecured Creditors ADGS ADVISORY: Union Power HK Raises Going Doubt Concern ARKANOVA ENERGY: MaloneBailey Raises Going Doubt Concern ARXX CORP: Proposes to Sell Assets to Airlite for $3.8-Mil. ARXX CORP: Receives Provisional Relief under Chap. 15 BAJA SOL CANTINA: Case Summary & 20 Largest Unsecured Creditors BETSEY JOHNSON: Hires Donlin Recano as Solicitation & Voting Agent BIG LOTS: Liquidation World Closes 4 Stores in Nova Scotia BIOVEST INTERNATIONAL: Cherry Bekaert Raises Going Concern Doubt BLUE REAL ESTATE: Voluntary Chapter 11 Case Summary BONDS.COM GROUP: Henri J. Chaoul Held 6.4% Stake at June 30 BOOMERANG SYSTEMS: Incurs $11.2 Million Net Loss in Fiscal 2013 BRETHREN HILLCREST: S&P Raises Rating to 'BB+'; Outlook Stable BUILDING #19: Gets Final OK to Use Cash Collateral C&K MARKET: Files Schedules of Assets and Liabilities C&K MARKET: Great American OK'd to Conduct Store Closing Sales C&K MARKET: Has Nod to Hire Food Partners as Financial Advisors CAMPUS HABITAT: Seeks to Use Cash Collateral to Operate CAMPUS HABITAT: Employs Paul Hunter, Esq., as Bankruptcy Counsel CAMPUS HABITAT: Schedules and Statement Due Jan. 13 CAMPUS HABITAT: Section 341(a) Meeting Set on January 23 CASPIAN SERVICES: Delays Form 10-K for Fiscal 2013 CELL THERAPEUTICS: Had $62.9MM Financial Standing at Nov. 30 CHRYSLER GROUP: Moody's Affirms 'B1' CFR on Fiat Acquisition Deal COMARCO INC: Has $551-K Net Income in Oct. 31 Quarter COMMUNITY TOWERS: Fights SJTC on Turnover of Funds CLERMONT SCAPES: Filed for Chapter 7 Liquidation COOPER-BOOTH WHOLESALE: Seeks 3rd Plan Filing Extension Thru March COOPER TIRE: Merger Termination No Impact on Moody's 'B1' CFR DESIGNER FURNITURE: Liquidation Sale Underway DETROIT, MI: Closing Arguments Continue in Swap Settlement DISPENSING DYNAMICS: S&P Retains 'B-' Corporate Credit Rating DREIER LLP: Suits Against Amaranth, Westford Go to Trial DUNLAP OIL: Panel Backs Bid for Plan Order Reconsideration EDDIE MONTGOMERY: Country Singer Files in Kentucky ELBIT IMAGING: Inks Definitive Agreement with Bank Hapoalim EXECUTIVE INN: New Owner to Conduct Liquidation Sales FCC HOLDINGS: S&P Retains 'CCC+' ICR on CreditWatch Negative FISKER AUTOMOTIVE: Hybrid Tech Sweetens Offer FOX & HOUND: Coca-Cola, Landlords on Creditors' Committee FNBH BANCORP: Plans to Conduct Rights Offering to Shareholders FREESEAS INC: To Close $8.5MM Final Tranche of $10MM Investment FREEZIA LLC: Case Summary & Unsecured Creditor FRIENDSHIP DAIRIES: Court Sees Cash Flow Crisis, Rejects Plan GENERAL CABLE: S&P Revises Outlook to Negative & Affirms 'BB-' CCR GENESIS PRESS: People's Capital Allowed $85,161 Admin. Claim GO DADDY: S&P Revises Outlook to Positive & Affirms 'B' CCR HOLIDAY INN, HUNSTVILLE: Conducts Liquidation Sale HRK HOLDINGS: Wants Plan Filing Deadline Extended to Jan. 27 IDERA PHARMACEUTICALS: Longwood Capital Holds Less Than 1% Stake INSPIRATION BIOPHARMA: Liquidating Plan Declared Effective IRISH BANK: Sues Borrower Flynn to Enforce Automatic Stay ISC8 INC: Squar Milner Raises Going Doubt Concern LAFAYETTE YARDS: Welcome Completes Acquisition of Hotel LANDMARK MEDICAL: Completes Sale to Calif.-Based Prime Healthcare LEVEL 3: $200-Mil. Notes Converted to 10.8-Mil. Common Shares LIGHTSQUARED INC: MAST, et al. Oppose Lenders' Proposed Plan LOEHMANN'S HOLDINGS: Creditor Panel Seeks to Retain Cash LOMBARDS FINE FURNITURE: Liquidation Sale Set Jan. 8 to 12 LONE PINE: Creditors Approve Restructuring Plan Under CCAA MARTIN BELZ: Peabody Hotel President Files in Chapter 11 MAYBERRY SPORTING GOODS: To Close at The End of The Month MCMAHON PROPERTIES: Voluntary Chapter 11 Case Summary MIDTOWN SCOUTS: Wants Plan Filing Deadline Moved to March 14 MRM PROJECT: Case Summary & 10 Unsecured Creditors NEW LIFE INT'L: Files for Chapter 11 in Nashville to Liquidate NEW LIFE INT'L: Proposes Gullett Sanford as Bankruptcy Counsel NEW LIFE INT'L: Hiring Kraft CPAs as Consultant NEW LIFE INT'L: Files List of 20 Largest Unsecured Creditors NNN 123: May Use Wells Fargo's Cash Collateral Until Jan. 31 NORTH TEXAS: Court OKs Sale of Park Cities to Olney Bancshares OCZ TECHNOLOGY: Has Final Nod to Pay Critical Vendors Claim OCZ TECHNOLOGY: Court Okays Hiring of GCG Inc as Claims Agent OCZ TECHNOLOGY: Hires GCG Inc as Administrative Advisor OCZ TECHNOLOGY: 3-Member Panel Named as Unsec. Creditors Committee ORMET CORP: Laid-Off Steelworkers to Conduct Picket on January 8 PAULSON CAPITAL: Intends to Appeal NASDAQ Determination Letter PRIME GLOBAL: B F Borgers Raises Going Doubt Concern RURAL/METRO CORP: Implements Plan Making Noteholders Owners PHYSIOTHERAPY HOLDINGS: Completes Seven-Week Chapter 11 SB PARTNERS: Incurs $266,600 Net Loss in Third Quarter SECUREALERT INC: Delays Form 10-K for Fiscal 2013 SIMPLY WHEELZ: Court Approves Sale of Assets to Catalyst Group SIMPLY WHEELZ: Wants to Incur $100MM Credit From HFC Acceptance SIONIX CORP: Delays Form 10-K for Fiscal 2013 SOUTHERN MONTANA ELECTRIC: Settlement Talks Already Planned SPENDSMART PAYMENTS: Incurs $12.6 Million Net Loss in Fiscal 2013 STACY'S INC: Hearing on Cash Collateral Use Set for Jan. 23 SURTRONICS INC: Court Fixes Jan. 21 as General Claims Bar Date TELECONNECT INC: Incurs $3.5 Million Net Loss in Fiscal 2013 TWN INVESTMENTS: Gets Case Converted to Chapter 7 Proceeding UNITED AMERICAN: Reports $343-K Net Loss for Q3 Ended Sept. 30 UNIVERSITY GENERAL: Amends Certificate of Designation UPPER VALLEY COMMERCIAL: Files for Chapter 11 to Wind Down Biz UPPER VALLEY COMMERCIAL: Proposes to Use Cash Collateral UPPER VALLEY COMMERCIAL: Seeks to Continue Funding From Woodsville UPPER VALLEY COMMERCIAL: Section 341(a) Meeting Set on Feb. 6 VELTI INC: Blackstone's GSO Completes Acquisition VELTI INC: Files Schedules of Assets and Liabilities VERITY CORP: Delays Form 10-K for Fiscal 2013 VERTIS HOLDINGS: To Sell Ontario Property for $1.25 Million VIGGLE INC: Trinity TVL Held 5.2% Equity Stake at December 16 VISUALANT INC: Delays Annual Report for Fiscal 2013 WATERSIDE CAPITAL: To Contest SBA Receivership Suit WESTMORELAND COAL: To Buy Sherritt's Coal Operations for $435MM WILLOW CREEK: Section 341(a) Meeting Scheduled for February 6 WILLOW CREEK: Voluntary Chapter 11 Case Summary XENONICS HOLDINGS: SingerLewak Raises Going Concern Doubt YRC WORLDWIDE: Signs $35 Million Stock Purchase Agreement * Subjective Belief No Defense to Discharge Contempt * Medicare Payment Cuts May Hit Home Health Providers * Fowler White Launches Restructuring & Bankruptcy Practice * Large Companies With Insolvent Balance Sheets ********* 11850 DEL PUEBLO: Court Okays Sale of Assets to JPV --------------------------------------------------- 11850 Del Pueblo, LLC, obtained approval from the Hon. Robert Kwan of the U.S. Bankruptcy Court for the Central District of California to sell all or substantially all of its assets free and clear of liens, claims and interests. As reported by the Troubled Company Reporter on Nov. 1, 2013, the Debtor asked the Court to, among other things: (a) approve bid procedures, dates and deadlines relating to the proposed sale of substantially all of the Debtor's assets, including the conduct of the auction; and (b) authorize a break-up fee and reimbursement of expenses in favor of a stalking horse bidder, if any, which in the aggregate does not exceed 1.5% of the proposed purchase price offered by the Stalking Horse Bidder. A copy of the proposed sale and assignment procedures is available at: http://bankrupt.com/misc/11850delpueblo.doc233.pdf In a Nov. 19, 2013 auction, Johnny Lam, Paul Chauderson and Victor Trang, each an individual presented the highest bid for the Property in the amount of $14.750 million. JPV also offered separate consideration outside of the Bankruptcy estate to purchase Payless's equipment and other personal property assets for $400,000. Because the Buyer Bid was below the threshold amount, the Buyer Bid could only be accepted by the Debtor with the Noteholder's consent. The Noteholder consented to the sale of the Property to JPV. In a Nov. 21, 2013 sale hearing, the Debtor announced the Buyer Bid as the winning bid. The Court also approved the Settlement Modifications. As reported by the TCR on Nov. 1, 2013, the Debtor explained that "as detailed in the Settlement Motion, the Noteholder, the Debtor and the Rodds have entered into a global settlement, subject to this Court's approval, which provides a blue-print for resolving this Case through a consensual sale of the Property and an allocation of the sale proceeds in a manner which allows for the Debtor's estate to share in a portion of the sale proceeds before the Noteholder is potentially paid in full on its asserted secured claim and the exchange of general releases." On Nov. 20, 2013, the Noteholder and its counsel, the Debtor and its counsel, and the Rodds reached an agreement amending the terms of the Settlement Agreement to provide, notwithstanding anything to the contrary in the Settlement Agreement, that: (1) the first $14.32 million of the net proceeds from the sale of the Property will be indefeasibly paid to Noteholder in immediately available funds, (2) counsel for the Noteholder will forego recovery of $25,000 in fees, (3) the Rodds will contribute an amount up to $200,000 from the proceeds attributable to the Payless Purchase, so as to ensure the administrative solvency of the Debtor's estate and (4) counsel for the Debtor will forego recovery of $25,000 in fees against the estate (inclusive of any fees that may be disallowed by the Court). About 11850 Del Pueblo 11850 Del Pueblo, LLC, first filed a Chapter 11 petition (Bankr. C.D. Cal. Case No. 12-42819) in Los Angeles on Sept. 27, 2012. The Debtor, a Single Asset Real Estate under 11 Sec. 101(51B), owns property on 11850 Valley Boulevard, in El Monte, California. The property, according to the schedules filed together with the petition, is worth $9 million and secures a $17.5 million claim. The Court eventually dismissed the bankruptcy case on Oct. 12, 2012, due to the Debtor's failure to timely file certain necessary documents. The Debtor filed a second petition (Bankr. C.D. Cal. 12-44726) on Oct. 15. Bankruptcy Judge Robert N. Kwan presides over the case. Patrick Galentine is the duly appointed state court receiver and custodian for the Debtor. Craig A. Welin, Esq., and Reed S. Wadell, Esq., serve as bankruptcy counsel for the receiver. U.S. Bank National Association, as trustee, successor-in-interest to Bank of America, N.A., as Trustee, as successor by merger to LaSalle Bank National Association, as Trustee, for the Registered Holders of Deutsche Mortgage & Asset Receiving Corporation Mortgage Pass-Through Certificates, Series CD2006-CD3, is represented by Alan M. Feld, Esq., M. Reed Mercado, Esq., and Adam McNeile, Esq., at Sheppard, Mullin, Richter & Hampton LLP. 261 EAST: Plan Outline Okayed, Jan. 28 Confirmation Hearing Set --------------------------------------------------------------- Judge Robert E. Gerber entered an amended order approving 261 East 78 Realty Corporation's Second Amended Disclosure Statement. The Second Amended Disclosure Statement was filed on Dec. 16, 2013, explaining the First Amended Plan of Reorganization dated Nov. 15, 2013. Under the Dec. 16 Amended Order, the Court approved the Disclosure Statement as containing adequate information within the meaning of Sec. 1125 of the Bankruptcy Code. The hearing to consider Plan confirmation and final applications for professional compensation and reimbursement expenses will be held on Jan. 28, 2014 at 9:45 a.m. The Court authorizes Jonathan S. Pasternak, Esq., to act as balloting agent. To be counted, ballots on the Plan must be actually received at addresses set forth in the ballot instructions by Jan. 21, 2014 at 5:00 p.m. Eastern Standard Time. The Balloting Agent is tasked to file a voting tabulation report with the Court no later than Jan. 22, at 5:00 p.m. Objections to confirmation of the Plan must be made in formal writing and served on the Court no later than Jan. 21. Pursuant to the Plan Term Sheet, the Plan will be funded by amounts made available by (i) the Plan Funder, of which $1,500,000 will be deposited in the Plan Fund Account and $10,700,000 will be distributed to MB Financial Bank, N.A., on account of its Allowed Class 2 Claim or (ii) the net proceeds of a Public Sale of the Debtor's Property conducted pursuant to Section 4.3 of the Plan, of which $11,000,000 will be distributed to MB on account of its Allowed Class 2 Claim and the balance will be used to make payments due under the Plan. In exchange for funding the Plan, upon the Effective Date, the Property, all Executory Contracts will be conveyed, transferred and/or assigned, as applicable, to the Plan Funder, free and clear of all leins, claims and encumbrances. In the event MB is the successful bidder for the Property, MB will make a payment of $85,000 to the Estate (the "MB Plan Contribution") to fund the Debtor's payment of U.S. Trustee Fees and, to the extent of remaining funds, General Administrative Expense Claims and Administrative Professional Fee Claims. The Plan provides for the designation and treatment of four claim classes -- Class 1 Non-Tax Priority Claims, Class 2 MB Financial Bank, N.A., Class 3 General Unsecured Claims, and Class 4 Interest Holders. Claim Classes 2 to 4 are impaired classes. Class 1 Claims will be paid in full. The Class 2 MB Financial Claim will be an Allowed Class 2 Secured Claim for $10.7 million, and an Allowed Class 3 General Unsecured Claim in the minimum amount of $6.97 million, provided that MB's Allowed Class 2 Secured Claim will increase to $11 million in the event that its Class 2 Claim is not satisfied by the Debtor within 120 days after the execution date of the MB Settlement Agreement, which Increased Allowed Class 2 Claim shall be paid in full from the proceeds of a Public Sale of the Property within 150 days after the execution of the MB Settlement Agreement implemented pursuant to Section 4.3 of the Plan. If the $10.7 million is not actually received by MB on or before the 120 Day Deadline or $11 million is not actually received by MB on or before the 150 Day Deadline, MB Financial will receive title to the Property pursuant to a Public Sale, free and clear of any Claims, Liens, interests or encumbrances of any kind. Holders of Class 3 Claims will receive a pro rata distribution from the Plan Fund Account. Claims under this class are estimated to aggregate to total up to $750,000. Class 4 Interests will be cancelled on the Plan effective date. A full-text copy of the Amended Disclosure Statement dated Dec. 16 is available for free at: http://bankrupt.com/misc/261EAST_2ndAmdDSDec16.pdf About 261 East 261 East 78 Realty Corp. owns real property located at 261 East 78th Street, in New York. The premises consist of seven commercial units, three of which are currently occupied. 261 East 78 Realty filed for Chapter 11 bankruptcy (Bankr. S.D.N.Y. Case No. 11-15624) on Dec. 6, 2011. The case was assigned to Judge Robert E. Gerber. The Chapter 11 filing was precipitated by the commencement of foreclosure proceedings on the premises. The Debtor scheduled $20.2 million in assets and $18.8 million in liabilities. The petition was signed by Lee Moncho, president. Jonathan S. Pasternak, Esq., at DelBello Donnellan Weingarten Wise & Wiederkehr, LLP, in White Plains, N.Y., represents the Debtor as counsel. Matthew W. Olsen, Esq., at Katten Muchin Rosenman LLP, in New York, N.Y., represents MB Financial Bank, N.A., as counsel. 515 SPOKANE: Case Summary & 10 Unsecured Creditors -------------------------------------------------- Debtor: 515 Spokane Partners, LLC 3311 S. Rainbow Blvd., Ste. 209 Las Vegas, NV 89146 Case No.: 14-10037 Chapter 11 Petition Date: January 3, 2014 Court: United States Bankruptcy Court District of Nevada (Las Vegas) Judge: Hon. Bruce T. Beesley Debtor's Counsel: Timothy P. Thomas, Esq. LAW OFFICES OF TIMOTHY P. THOMAS, LLC 8670 W. Cheyenne Ave. #120 Las Vegas, NV 89129 Tel: (702) 227-0011 Fax: (702) 227-0015 Email: TTHOMAS@TTHOMASLAW.COM Total Assets: $3.65 million Total Liabilities: $2.87 million The petition was signed by William B. Dyer, president of MNG MBR Integrated Financial Associates, Inc. A list of the Debtor's 10 largest unsecured creditors is available for free at http://bankrupt.com/misc/nvb14-10037.pdf ADGS ADVISORY: Union Power HK Raises Going Doubt Concern -------------------------------------------------------- ADGS Advisory, Inc., filed with the U.S. Securities and Exchange Commission on Dec. 24, 2013, its annual report on Form 10-K for the fiscal year ended Aug. 31, 2013. Union Power HK CPA Limited expressed substantial doubt about the Company's ability to continue as a going concern, citing that the Company is highly leveraged and is dependent on debt financings to fund its operations. The Company reported a net profit of $624,797 on $3.2 million of revenues in fiscal year ended Aug. 31, 2013, compared with a net loss of $196,169 on $1.7 million of revenues in fiscal year ended Aug. 31, 2012. The Company's balance sheet at Aug. 31, 2013, showed $4.77 million in total assets, $4.84 million in total liabilities, and stockholders' deficit of $78,848. A copy of the Form 10-K is available at: http://is.gd/xuACGZ Kowloon, Hong Kong-based ADGS Advisory, Inc., formerly known as Life Nutrition Products, Inc., was incorporated in the State of Delaware in September 2007 under the name Life Nutrition Products, Inc. Pursuant to a Certificate of Amendment to its Certificate of Incorporation filed with the State of Delaware and effective as of July 19, 2013, the Company changed its corporate name from "Life Nutrition Products, Inc." to "ADGS Advisory, Inc.". ADGS is primarily engaged in providing accounting, taxation, company secretarial and consultancy services in Hong Kong. ARKANOVA ENERGY: MaloneBailey Raises Going Doubt Concern -------------------------------------------------------- Arkanova Enery Corporation filed with the U.S. Securities and Exchange Commission on Dec. 24, 2013, its annual report on Form 10-K for the fiscal year ended Sept. 30, 2013. MaloneBailey LLP expressed substantial doubt about its ability to continue as a going concern, citing that the Company has incurred cumulative losses since inception and has negative working capital. The Company reported a net loss of $2.73 million on $849,916 of total revenue in fiscal year ended Sept. 30, 2013, compared with a net income of $3.84 million on $980,052 of total revenue in fiscal 2012. The Company's balance sheet at Sept. 30, 2013, showed $2.43 million in total assets, $11.62 million in total liabilities, and stockholders' deficit of $9.19 million. A copy of the Form 10-K is available at: http://is.gd/QAf2aY About Arkanova Austin, Tex.-based Arkanova Energy Corporation is a junior producing oil and gas company and is also engaged in the acquisition, exploration and development of prospective oil and gas properties. It holds mineral leases in Delores County, Lone Mesa State Park, Colorado and leasehold interests located in Pondera and Glacier Counties, Montana. The Company's balance sheet at March 31, 2013, showed $2.56 million in total assets, $9.94 million in total liabilities and a $7.37 million total stockholders' deficit. In its report on the consolidated financial statements for the year ended Dec. 31, 2012, MaloneBailey, LLP, in Houston, Texas, expressed substantial doubt about Arkanova Energy's ability to continue as a going concern. The independent auditors noted that the Company has incurred cumulative losses since inception and has negative working capital. ARXX CORP: Proposes to Sell Assets to Airlite for $3.8-Mil. ----------------------------------------------------------- Duff & Phelps Canada Restructuring Inc., in its capacity as the court-appointed receiver and foreign representative of ARXX Corp. and its affiliates in the proceeding commenced under Canada's Bankruptcy and Insolvency Act before the Ontario Superior Court of Justice, Commercial List, seeks authority from the U.S. Bankruptcy Court for the District of Delaware to sell the Debtor's assets to Airlite Plastics Co. The Airlite Purchase Agreement provides for a $2.8 million base cash purchase price, plus the "working capital amount" and certain assumed liabilities. As of Dec. 19, 2013, the value of the transaction is estimated to total approximately $3.8 million. The Working Capital Amount is estimated to total approximately $1 million. The Canadian Proceeding contemplates a sale of the ARXX Debtors' business, carried out by the Receiver, as the best option for maximizing and preserving the enterprise value of the ARXX Debtors for the benefit of the ARXX Debtors' stakeholders, including their creditors, employees, customers, and suppliers. To that end, the Ontario Court authorized and directed the Receiver to accept the Purchase Agreement with Airlite Plastics as the stalking horse bid. Under the Stalking Horse Process approved by the Ontario Court, the deadline to submit offers to the Receiver is Jan. 22, 2014. If one or more Qualified Bids, other than that submitted by Airlite, have been received by the Receiver on or before the Bid Deadline, the Receiver will conduct an auction on Jan. 24 at the offices of Torys LLP. The Stalking Horse Process provides that the Receiver will apply to the Ontario Court for approval of the Purchase Agreement, the transaction contemplated thereby, and the sale approval. A hearing to consider approval of the sale is currently scheduled for Jan. 29. The Airlite Purchase Agreement provides for the payment to Airlite of $150,000 break-up fee and $150,000 reimbursement for expenses incurred in connection with the purchase agreement and the sale transaction. The ARXX Debtors and Airlite agreed that the closing date is Feb. 3. Should the parties be unable to close on Feb. 3, the Closing Date will be Feb. 10, or other date as agreed by the parties. A hearing on the sale procedures motion is scheduled for Jan. 31, 2014, at 11:00 a.m. Objections are due Jan. 24. The case is In re ARXX Corp., 13-bk-13313, U.S. Bankruptcy Court, District of Delaware (Wilmington). Judge Kevin J. Carey presides over the Chapter 15 case. The Debtor is represented by Duff & Phelps Canada Restructuring Inc. as receiver and foreign representative. Duff & Phelps is represented by Matthew Barry Lunn, Esq., Justin P. Duda, Esq., and Ian J. Bambrick, Esq., at Young, Conaway, Stargatt & Taylor, in Wilmington, Delaware. ARXX CORP: Receives Provisional Relief under Chap. 15 ----------------------------------------------------- Judge Kevin J. Carey of the U.S. Bankruptcy Court for the District of Delaware entered an order granting ARXX Corp., et al., granting provisional relief under Chapter 15 of the U.S. Bankruptcy Code in aid of the proceeding under Canada's Bankruptcy and Insolvency Act pending before the Ontario Superior Court of Justice, Commercial List. Pending entry of an order recognizing the Canadian Proceeding as the "foreign main proceeding," Sections 362 and 365(e) of the U.S. Bankruptcy Code will apply in the Chapter 15 cases and the order will operate as a stay of execution against the ARXX Debtors and their businesses and assets within the territorial jurisdiction of the United States pursuant to Section 1519(a)(1) of the U.S. Bankruptcy Code. All persons and entities are enjoined from (a) continuing any action or commencing any additional action involving the ARXX Debtors, their assets, or the proceeds thereof, or their former, current, or future directors or officers; (b) enforcing any judicial, quasi-judicial, administrative, or regulatory judgment, assessment, order, or arbitration award against the ARXX Debtors or their respective assets; (c) commencing or continuing any action to create, perfect, or enforce any lien, setoff, or other claim against the ARXX Debtors or their respective assets; or (d) managing or exercising control over the ARXX Debtors' assets located within the territorial jurisdiction of the United States. Judge Carey found that Duff & Phelps Canada Restructuring Inc. as receiver and foreign representative for ARXX and its affiliates has demonstrated a substantial likehood of success on the merits that (i) the ARXX Debtors are subject to a pending "foreign main proceeding" as the term is defined in Section 1502(4) of the U.S. Bankruptcy Code; (ii) the Receiver is a "foreign representative" as the term is defined in Section 101(24) of the U.S. Bankruptcy Code; and (iii) all statutory elements for recognition of the Canadian Proceeding are satisfied in accordance with Section 1517 of the U.S. Bankruptcy Code. The case is In re ARXX Corp., 13-bk-13313, U.S. Bankruptcy Court, District of Delaware (Wilmington). Judge Kevin J. Carey presides over the Chapter 15 case. The Debtor is represented by Duff & Phelps Canada Restructuring Inc. as receiver and foreign representative. Duff & Phelps is represented by Matthew Barry Lunn, Esq., Justin P. Duda, Esq., and Ian J. Bambrick, Esq., at Young, Conaway, Stargatt & Taylor, in Wilmington, Delaware. BAJA SOL CANTINA: Case Summary & 20 Largest Unsecured Creditors --------------------------------------------------------------- Debtor: Baja Sol Cantina EP, LLC PO BOX 309 Anoka, MN 55303 Case No.: 14-40026 Chapter 11 Petition Date: January 3, 2014 Court: United States Bankruptcy Court District of Minnesota (Minneapolis) Judge: Hon. Kathleen H Sanberg Debtor's Counsel: John D. Lamey, III, Esq. LAMEY LAW FIRM, P.A. 980 Inwood Ave N Oakdale, MN 55128 Tel: 651-209-3550 Email: bankrupt@lameylaw.com Total Assets: $0 Total Liabilities: $6.32 million The petition was signed by Michael Wigley, chief manager. A list of the Debtor's 20 largest unsecured creditors is available for free at http://bankrupt.com/misc/mnb14-40026.pdf BETSEY JOHNSON: Hires Donlin Recano as Solicitation & Voting Agent ------------------------------------------------------------------ Betsey Johnson LLC seeks authorization from the U.S. Bankruptcy Court for the Southern District of New York to employ Donlin, Recano & Company, Inc. as solicitation and voting agent, nunc pro tunc to Dec. 16, 2013. The Debtor requires Donlin Recano to: (a) assist with, among other things, solicitation, balloting and tabulation and calculation of votes, as well as preparing any appropriate reports, as required in furtherance of confirmation of plans of reorganization (the "Balloting Services"); (b) generating an official ballot certification and testifying, If necessary, in support of the ballot tabulation results; (c) in connection with the Balloting Services, handle requests For documents from parties in interest; (d) provide a confidential data room, if requested; (e) managing and coordinating any distributions pursuant to a confirmed plan of reorganization or otherwise; and (f) provide such other processing, solicitation, balloting and Other administrative services described in the Services Agreement, but not included in the Section 156(c) Application, as may be requested from time to time by the Debtor, the Court or the Clerk. Donlin Recano will be paid at these discounted hourly rates: Senior Bankruptcy Consultant $217 Consultant $205 Case Manager $149-$180 Tech/Programming Consultant $138-$158 Analyst $115 Clerical $46 Donlin Recano will also be reimbursed for reasonable out-of-pocket expenses incurred. Prior to the filing of the Chapter 11 case, the Debtor paid Donlin Recano a $15,000 retainer. No additional retainer is being paid for Donlin Recano's expanded services. Colleen McCormick, chief operating officer of Donlin Recano, 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. Donlin Recano can be reached at: Colleen McCormick DONLIN, RECANO & COMPANY, INC. 419 Park Avenue South New York, NY 10016 Tel: (212) 481-1411 Fax: (212) 481-1416 About Betsey Johnson New York-based women's fashion retailer Betsey Johnson LLC filed a Chapter 11 bankruptcy petition (Bankr. S.D.N.Y. Case No. 12-11732) on April 26, 2012, to effectuate a sale of its assets. Formed as B.J. Vines by its namesake, iconic fashion designer Betsey Johnson in 1978, the Debtor sells clothing, footwear, handbags and a signature fragrance through 63 Betsey Johnson retail stores and outlets in the U.S. The Company, which has 400 employees, also sells its products in department and specialty stores worldwide, including Macy's and Lord & Taylor, and online at http://www.betseyjohnson.com/ Non-debtor subsidiaries operate five stores in Canada and one store in England. In 2010, Steven Madden Ltd. a footwear designer and marketer, swapped US$27.4 million of secured debt for ownership of Betsey Johnson's trademarks and intellectual property. The deal satisfied all outstanding debt under a US$50 million term loan used to finance the business' acquisition by Castanea Partners. At the same time, Castanea, the company's majority owner, made a new capital investment of US$3 million as part of the deal with Madden. Betsey Johnson estimated assets and debts of US$10 million to US$50 million as of the Chapter 11 filing. Judge James Peck oversees the case. The Debtor tapped the law firm of Goulston & Storrs, as counsel; Togut, Segal & Segal, LLP, as co-counsel; and Donlin Recano & Company as claims and notice agent. The petition was signed by Jonathan Friedman, chief financial officer. Hahn & Hessen LLP serves as counsel to the Official Committee of Unsecured Creditors. In May 2012, Betsey Johnson received court approval to begin liquidation after the Debtor failed to attract going concern bidders. Liquidators Gordon Brothers Group Inc. and Hilco Merchant Resources LLC offered the top bid for the right to run the chain's going-out-of-business sales. The bid brought the Debtor about $5.2 million immediately, and more money could trickle in to pay off debts if the liquidation effort brings in more money than expected. Hilco is represented by Chris L. Dickerson, Esq., at DLA Piper LLP (US). Counsel for Steven Madden, Ltd., is Neil Herman, Esq., at Morgan, Lewis & Bockius LLP. Counsel for First Niagara Commercial Finance, Inc., the DIP Lender, is James C. Fox, Esq., at Ruberto, Israel & Weiner. BIG LOTS: Liquidation World Closes 4 Stores in Nova Scotia ---------------------------------------------------------- The Herald Business reports that Liquidation World to shut down four stores in Nova Scotia, Canada, putting dozens out of work. Liquidation World is closing stores in Halifax, Dartmouth, Truro and Amherst as part of a national shutdown, according to the report. The report notes that particular closing dates at the four Nova Scotia stores, and another 74 across Canada, will be linked to individual lease renewals dates, according to owner Big Lots, Inc. of Columbus, Ohio. The complete shutdown of Canadian operations and stores is to be completed in the first quarter of 2014, according to the company, the report discloses. Big Lots picked up the financially troubled Liquidation World operation in July 2011, in the first expansion of its retail operations outside the United States, the report recalls. Liquidation World operates out of Brampton, Ont., and has about 1,600 employees across Canada. Each store employs an average of 20 to 30 full- and part-time workers. Besides the retail side, which features a broad assortment of consumer closeout merchandise, the company is also one of Canada's biggest liquidators. The shutdown of Canadian operations was announced this month when Big Lots presented fourth-quarter results for 2013 to investors, the report says. "We intend to begin an orderly wind-down process immediately and expect that principal operations (in Canada) will cease during the first quarter of fiscal 2014," the company said, the report notes. A fourth-quarter loss from Canadian operations was estimated to be about $40 million. "We have decided to exit the unprofitable Canadian market," the company said. Big Lots operations in Canada consist of 73 stores under the Liquidation World or LW brand names, five stores under the Big Lots brand name, two distribution centres and an office. "Over the last two years we have invested in this business, and our team in Canada has worked diligently to turn it around," the company said. BIOVEST INTERNATIONAL: Cherry Bekaert Raises Going Concern Doubt ---------------------------------------------------------------- Biovest International, Inc., filed with the U.S. Securities and Exchange Commission on Dec. 27, 2013, its annual report on Form 10-K for the fiscal year ended Sept. 30, 2013. Cherry Bekaert LLP expressed substantial doubt about the Company's ability to continue as a going concern, citing that the Company incurred cumulative net losses since inception of approximately $172 million. Furthermore, the Company expects to continue to incur net losses through at least fiscal year 2014 and has limited working capital at Sept. 30, 2013. The Company reported a net loss of $1.48 million on $1.5 million of total revenue for the period from July 1 through Sept. 30, 2013. The Company's balance sheet at Sept. 30, 2013, showed $43.62 million in total assets, $1.65 million in total liabilities, and stockholders' equity of $41.97 million. A copy of the Form 10-K is available at: http://is.gd/k92jsk About Biovest International Biovest International, Inc. -- http://www.biovest.com/-- is an emerging leader in the field of active personalized immunotherapies. In collaboration with the National Cancer Institute, Biovest has developed a patient-specific, cancer vaccine, BiovaxID(R), with three clinical trials completed, including a Phase III study, demonstrating evidence of safety and efficacy for the treatment of indolent follicular non-Hodgkin's lymphoma. Headquartered in Tampa, Florida, with its bio-manufacturing facility based in Minneapolis, Minnesota, Biovest is publicly- traded on the OTCQB(TM) Market with the stock-ticker symbol "BVTI", and is a majority-owned subsidiary of Accentia Biopharmaceuticals, Inc. (OTCQB: "ABPI"). Biovest, along with its subsidiaries, Biovax, Inc., AutovaxID, Inc., Biolender, LLC, and Biolender II, LLC, filed for Chapter 11 bankruptcy protection (Bankr. M.D. Fla. Case No. 08-17796) on Nov. 10, 2008. Biovest emerged from Chapter 11 protection, and its reorganization plan became effective, on Nov. 17, 2010. Biovest International Inc., filed a petition for Chapter 11 reorganization (Bankr. M.D. Fla. Case No. 13-02892) on March 6, 2013, in Tampa, Florida. The new bankruptcy case was accompanied by a proposed reorganization plan supported by secured lenders owed about $38.5 million. Total debt is $44.9 million, with assets listed in a court filing as being valued at $4.7 million. About $5.4 million is owing to unsecured creditors, according to a court paper. Biovest has successfully emerged from Chapter 11 reorganization effective on July 9, 2013. The Company's balance sheet at June 30, 2013, showed $5.92 million in total assets, $49.11 million in total liabilities and a $43.18 million total stockholders' deficit. BLUE REAL ESTATE: Voluntary Chapter 11 Case Summary --------------------------------------------------- Debtor: Blue Real Estate Holdings, LLC 185 Riverdale Avenue, Suite 101 Yonkers, NY 10705 Case No.: 14-22007 Chapter 11 Petition Date: January 3, 2014 Court: United States Bankruptcy Court Southern District of New York (White Plains) Judge: Hon. Robert D. Drain Debtor's Counsel: Jerold Rotbard, Esq. HAROLD, SALANT, STRASSFIELD & SPIELBERG 81 Main Street, Suite 205 White Plains, NY 10601 Tel: (914) 683-2500 Fax: (914) 683-1279 Email: jrotbard@hsss.org Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Thomas J. Conneally, managing member. The Debtor did not file a list of its largest unsecured creditors when it filed the petition. BONDS.COM GROUP: Henri J. Chaoul Held 6.4% Stake at June 30 ----------------------------------------------------------- In a Schedule 13D filed with the U.S. Securities and Exchange Commission, Henri J. Chaoul, Ph.D., disclosed that as of June 20, 2013, he beneficially owned 16,625 shares of common stock of Bonds.com Group, Inc., representing 6.39 percent of the shares outstanding. On June 20, 2013, the Company granted Mr. Chaoul a non-qualified stock option for the purchase of 16,625 shares of the Company's Common Stock, which was fully vested and exercisable upon grant. The option expires on June 20, 2020. A copy of the regulatory filing is available at: http://is.gd/ELNZ39 About Bonds.com Group Based in Boca Raton, Florida, Bonds.com Group, Inc. (OTC BB: BDCG) -- http://www.bonds.com/-- through its subsidiary Bonds.com, Inc., serves institutional fixed income investors by providing a comprehensive zero subscription fee online trading platform. The Company designed the BondStation and BondStationPro platforms to provide liquidity and competitive pricing to the fragmented Over- The-Counter Fixed Income marketplace. The Company differentiates itself by offering through Bonds.com, Inc., an inventory of more than 35,000 fixed income securities from more than 175 competing sources. Asset classes currently offered on BondStation and BondStationPro, the Company's fixed income trading platforms, include municipal bonds, corporate bonds, agency bonds, certificates of deposit, emerging market debt, structured products and U.S. Treasuries. Bonds.com Group disclosed a net loss of $6.98 million in 2012, as compared with a net loss of $14.45 million in 2011. The Company's balance sheet at Sept. 30, 2013, showed $6.05 million in total assets, $4.09 million in total liabilities and $1.95 million in total stockholders' equity. EisnerAmper LLP, in New york, 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 a working capital deficiency and a stockholders' deficiency that raise substantial doubt about its ability to continue as a going concern. BOOMERANG SYSTEMS: Incurs $11.2 Million Net Loss in Fiscal 2013 --------------------------------------------------------------- Boomerang Systems, Inc., filed with the U.S. Securities and Exchange Commission its annual report on Form 10-K disclosing a net loss of $11.22 million on $2.71 million of total revenues for the year ended Sept. 30, 2013, as compared with a net loss of $17.42 million on $1.14 million of total revenues during the prior year. As of Sept. 30, 2013, the Company had $4.16 million in total assets, $26.13 million in total liabilities and a $21.97 million total stockholders' deficit. Bankruptcy Warning "Our operations may not generate sufficient cash to enable us to service our debt. If we were to fail to make any required payment under the Loan Agreement, notes and agreements governing our indebtedness or fail to comply with the covenants contained in the Loan Agreement, notes and agreements, we would be in default. A debt default could significantly diminish the market value and marketability of our common stock and could result in the acceleration of the payment obligations under all or a portion of our consolidated indebtedness, or a renegotiation of our Loan Agreement with more onerous terms and/or additional equity dilution. If the debt holders were to require immediate payment, we might not have sufficient assets to satisfy our obligations under the Loan Agreement, notes or our other indebtedness. It may also enable their lenders under the Loan Agreement to foreclose on the Company's assets and/or its ownership interests in its subsidiaries. In such event, we could be forced to seek protection under bankruptcy laws, which could have a material adverse effect on our existing contracts and our ability to procure new contracts as well as our ability to recruit and/or retain employees. Accordingly, a default could have a significant adverse effect on the market value and marketability of our common stock," the Company said in the Annual Report. A copy of the Form 10-K is available for free at: http://is.gd/vzJoE8 About Boomerang Systems Headquartered in Morristown, New Jersey, Boomerang Systems, Inc. (Pink Sheets: BMER) through its wholly owned subsidiary, Boomerang Utah, is engaged in the design, development, and marketing of automated racking and retrieval systems for automobile parking and automated racking and retrieval of containerized self-storage units. BRETHREN HILLCREST: S&P Raises Rating to 'BB+'; Outlook Stable -------------------------------------------------------------- Standard & Poor's Ratings Services raised its rating and underlying rating (SPUR) to 'BB+' from 'BB' on La Verne, Calif.'s series 2003A and 2003B debt, issued for Brethren Hillcrest Homes (Hillcrest). The outlook is stable. "The upgrade reflects our view of Hillcrest's continued progress with improving the organization's financial profile, specifically a marked increase in days' cash on hand during the past few years," said Standard & Poor's credit analyst Kenneth Gacka. Additional credit factors supporting the 'BB+' ratings and stable outlook include S&P's opinion of: -- Hillcrest's improved days' cash on hand during the past few years, which now exceeds its required covenant for the past three audited years; -- The organization's adequate overall demand; and -- The strong management team leading the organization's improvement initiatives, positively impacting Hillcrest's financial profile during the past few years. At June 30, 2013, Hillcrest had $40.3 million of long-term debt. BUILDING #19: Gets Final OK to Use Cash Collateral -------------------------------------------------- The U.S. Bankruptcy Court for the District of Massachusetts, for reasons set forth on the record and in the absence of any objections, granted final authority for Building #19, Inc. to access its cash collateral. A status conference in the case will be held on Jan. 31, 2014, at 10:30 a.m., according to the Court. About Building #19, Inc. Building #19, Inc., and its affiliates sought protection under Chapter 11 of the Bankruptcy Code on Nov. 1, 2013 (Bankr. D. Mass. Case No. 13-16429). Donald Ethan Jeffery, Esq., and Harold B. Murphy, Esq., at Murphy & King, Professional Corporation, in Boston, Massachusetts, serve as the Debtors' bankruptcy counsel. The Tron Group, LLC, serve as their financial advisers. William K. Harrington, the U.S. Trustee for Region 1, appointed five members to the official committee of unsecured creditors. The Committee retained Duane Morris LLP as its counsel. C&K MARKET: Files Schedules of Assets and Liabilities ----------------------------------------------------- C&K Market Inc. filed with the U.S. Bankruptcy Court for the District of Oregon its schedules of assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ----------- ----------- A. Real Property $42,635,000 B. Personal Property $ 115,061,921 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $37,847,683 E. Creditors Holding Unsecured Priority Claims $1,202,819 F. Creditors Holding Unsecured Non-priority Claims $62,553,733 ----------- ----------- TOTAL $157,696,921 $101,604,234 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. Based in Brookings, Oregon, family-owned C&K has 60 stores, with 41 in Oregon and 19 in northern California, according to court documents. Operating under the names of Ray's Food Place, Shop Smart and C&K Market, the company intends to sell or close about 21 stores. C&K Market said bankruptcy resulted from competition from big-box stores such as Wal-Mart Stores Inc. and Costco Wholesale Corp. 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: Great American OK'd to Conduct Store Closing Sales -------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Oregon has granted C&K Markets, Inc., authority to employ Great American Group, LLC, to conduct store closing sales. As reported by the Troubled Company Reporter on Nov. 29, 2013, the Debtor will pay Great American a fee equal to 4.0% of the gross proceeds of merchandise sold during store closing sales payable weekly, without further order of the Court. The Debtor will also pay Great American a commission equal to 20% of the proceeds from the sale of fixtures and equipment, plus reimburse Great American's actual out of pocket expenses incurred in connection with the sale of fixtures and equipment. 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. In its schedules, the Debtor disclosed $157,696,921 in total assets and $101,604,234 in total liabilities. C&K MARKET: Has Nod to Hire Food Partners as Financial Advisors --------------------------------------------------------------- C&K Markets, Inc., obtained permission from the U.S. Bankruptcy Court for the District of Oregon to employ Food Partners, LLC, as financial advisors. As reported by the Troubled Company Reporter on Nov. 29, 2013, Food Partners will provide financial analysis, modeling, reports and testimony, if necessary, and advising and assisting with the possible sale to one or more third parties of certain of the Debtor's retail grocery stores and related assets. 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. In its schedules, the Debtor disclosed $157,696,921 in total assets and $101,604,234 in total liabilities. CAMPUS HABITAT: Seeks to Use Cash Collateral to Operate ------------------------------------------------------- Campus Habitat 15, LLC, seeks authority from the U.S. Bankruptcy Court for the District of Wyoming to use cash collateral. The Debtor states in court papers that it is concerned that if it is not able to use cash collateral it will have to shut down operations at its housing complex. Paul Hunter, Esq., in Cheyenne, Wyoming, asserts that very limited operations will reduce occupancy and may result in significant damage claims from the lessees. The inability to use cash collateral will dramatically lowers the value of the complex and eliminate the possibility of a sale that could pay the unsecured creditors in full, Mr. Hunter adds. The Debtor proposes to grant Duetsche Bank Trust Company of the Americas, as Trustee for the Registered Holders of Wells Fargo Commercial Mortgage Securities, Inc., Commercial Mortgage Pass- Through Certificates, Series 2011-C3, as secured creditor, a preliminary postpetition lien on all postpetition accounts receivable, inventory, accounts and equipment until the time as the Debtor's use of cash collateral can be finally approved by the court after a final hearing. The Debtor will also keep all its assets fully insured and will provide the creditors with a monthly operating report, and all other reports filed with the United States Trustee. Campus Habitat 15, LLC, aka University Lodge, sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D. Wyo. Case No. 13-21179) on Dec. 29, 2013. The case is assigned to Judge Peter J. McNiff. The Debtor is represented by Paul Hunter, Esq., in Cheyenne, Wyoming. CAMPUS HABITAT: Employs Paul Hunter, Esq., as Bankruptcy Counsel ---------------------------------------------------------------- Campus Habitat 15, LLC, seeks authority from the U.S. Bankruptcy Court for the District of Wyoming to employ Paul Hunter, Esq., as counsel. The terms of the applicant's employment are $200 per hour. Mr. Hunter received a $5,000 retainer payment from the Debtor prior to the Petition Date. Mr. Hunter will also be reimbursed for any necessary out-of-pocket expenses. Mr. Hunter assures the Court that he 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. Campus Habitat 15, LLC, aka University Lodge, sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D. Wyo. Case No. 13-21179) on Dec. 29, 2013. The case is assigned to Judge Peter J. McNiff. The Debtor is represented by Paul Hunter, Esq., in Cheyenne, Wyoming. CAMPUS HABITAT: Schedules and Statement Due Jan. 13 --------------------------------------------------- Tim J. Ellis, clerk of court for the U.S. Bankruptcy Court for the District of Wyoming, notified Campus Habitat 15, LLC, that it has to submit its Schedules D, E, and F, and statement of financial affairs on or before Jan. 13, 2014, or its Chapter 11 case will be automatically dismissed without further notice. Campus Habitat 15, LLC, aka University Lodge, sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D. Wyo. Case No. 13-21179) on Dec. 29, 2013. The case is assigned to Judge Peter J. McNiff. The Debtor is represented by Paul Hunter, Esq., in Cheyenne, Wyoming. CAMPUS HABITAT: Section 341(a) Meeting Set on January 23 -------------------------------------------------------- A meeting of creditors in the bankruptcy case of Campus Habitat 15, LLC, will be held on Jan. 23, 2014, at 10:00 a.m. at 308 West 21st Street, 2nd Floor, Federal Building, Cheyenne, WY. Creditors have until April 23, 2014, to submit their proofs of claim. This is the first meeting of creditors required under Section 341(a) of the Bankruptcy Code in all bankruptcy cases. All creditors are invited, but not required, to attend. This meeting of creditors offers the one opportunity in a bankruptcy proceeding for creditors to question a responsible office of the Debtor under oath about the company's financial affairs and operations that would be of interest to the general body of creditors. Campus Habitat 15, LLC, filed a Chapter 11 bankruptcy petition (Bankr. D. Wyo. Case No. 13-21179) on Dec. 29, 2013. Maximus A. Yaney signed the petition as manager. The Debtor estimated assets and debts of at least $10 million. Paul Hunter, Esq., serves as the Debtor's counsel. The Hon. Peter J. McNiff presides over the case. CASPIAN SERVICES: Delays Form 10-K for Fiscal 2013 -------------------------------------------------- Caspian Services, Inc., filed with the U.S. Securities and Exchange Commission a Notification of Late Filing on Form 12b-25 with respect to its annual report on Form 10-K for the period ended Sept. 30, 2013. The Company said the Form 10-K could not be timely filed because management requires additional time to compile and verify the data required to be included in the report. The report will be filed within 15 calendar days of the date the original report was due. About Caspian Services Headquartered in Salt Lake City, Caspian Services, Inc., was incorporated under the laws of the state of Nevada on July 14, 1998. Since February 2002 the Company has concentrated its business efforts to provide diversified oilfield services to the oil and gas industry in western Kazakhstan and the Caspian Sea, including providing a fleet of vessels, onshore, transition zone and marine seismic data acquisition and processing services and a marine supply and support base in the port of Bautino, in Bautino Bay, Kazakhstan. The Company's balance sheet at June 30, 2013, showed $81.44 million in total assets, $88.63 million in total liabilities and a $7.19 million total deficit. Bankruptcy Warning In September 2011, the Company executed an agreement to consolidate and restructure certain outstanding loans in the total aggregate amount of $35,246 with an otherwise unrelated individual. Closing of the Loan Restructuring Agreement is subject to a number of closing conditions, including among other things, the Investor reaching agreement with the European Bank for Reconstruction and Development to restructure certain EBRD financing agreements with the Company. Until the closing of the Loan Restructuring Agreement, the restructured loans will be treated as current liabilities. The Company funded a portion of the construction of its marine base through a combination of debt and equity financing with EBRD pursuant to which EBRD provided $18,600 of debt financing and made an equity investment in the marine base in the amount of $10,000 in exchange for a 22 percent equity interest in Balykshi. "Should EBRD accelerate its loan or its put option or should the Loan Restructuring Agreement with Investor not close, we would have insufficient funds to satisfy our obligations to EBRD and or to Investor, collectively or individually. If we are unable to satisfy those obligations, EBRD and/or Investor could seek any legal remedy available to obtain repayment, including forcing the Company into bankruptcy, or foreclosing on the loan collateral, which, in the case of EBRD includes the marine base and other assets and bank accounts of Balykshi and CRE, and in the case of Investor includes other assets of the Company," the Company said in its quarterly report for the period ended June 30, 2013. "The ability of the Company to continue as a going concern is dependent upon, among other things, its ability to successfully negotiate and conclude restructured financing agreements with EBRD and Investor and its ability to generate sufficient revenue from operations, or to identify a financing source that will provide the Company the ability to satisfy its repayment and guarantee obligations under the restructured financing agreements. Uncertainty as to the outcome of these factors raises substantial doubt about the Company's ability to continue as a going concern," the Company added. CELL THERAPEUTICS: Had $62.9MM Financial Standing at Nov. 30 ------------------------------------------------------------ Cell Therapeutics, Inc., or CTI Parent Company provided information pursunt to a request from the Italian securities regulatory authority, CONSOB, pursuant to Article 114, Section 5 of the Italian Legislative Decree no. 58/98, that the Company issue at the end of each month a press release providing a monthly update of certain information relating to the Company's financial situation. The total estimated and unaudited net financial standing of CTI Parent Company as of Nov. 30, 2013, was $62.9 million. The total estimated and unaudited net financial standing of CTI Consolidated Group as of Nov. 30, 2013, was $64.9 million. In November the Company received an upfront payment of $60 million related to a licensing agreement with Baxter International Inc. to develop and commercialize pacritinib. The upfront payment included an equity investment of $30 million. CTI Parent Company trade payables outstanding for greater than 30 days were approximately $4.5 million as of Nov. 30, 2013. CTI Consolidated Group trade payables outstanding for greater than 30 days were approximately $5.8 million as of Nov. 30, 2013. During November 2013, there were solicitations for payment only within the ordinary course of business and there were no injunctions or suspensions of supply relationships that affected the course of normal business. As of Nov. 30, 2013, there were no amounts due of a financial or tax nature, or amounts due to social security institutions or to employees. A copy of the press release is available for free at: http://is.gd/qXeLYQ 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. The Company's balance sheet at Sept. 30, 2013, showed $47.23 million in total assets, $33.39 million in total liabilities, $13.46 million in common stock purchase warrants, and $387,000 in total shareholders' equity. 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 its quarterly report for the period ended Sept. 30, 2013. 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 pacritinib, PIXUVRI, 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," the Company said in its Form 10-Q for the period ended Sept. 30, 2013. CHRYSLER GROUP: Moody's Affirms 'B1' CFR on Fiat Acquisition Deal ----------------------------------------------------------------- Moody's Investors Service affirmed the ratings of Chrysler Group LLC following the announcement that Fiat S.p.A. (Ba3/Negative) reached an agreement with the UAW Retiree Medical Benefits Trust (VEBA Trust) to acquire the 41.5% of the membership interests of Chrysler that it does not already own for total consideration of $3.65 billion. Chrysler ratings affirmed include: Corporate Family Rating (CFR) -- B1; Probability of Default Rating (PDR) -- B1-PD; secured 1st-lien term loan and credit facility -- Ba1 (LGD2, 11); secured 2nd lien notes -- B1 (LGD3, 42); and Speculative Grade Liquidity rating -- SGL-2. The rating outlook remains stable. Ratings Rationale The affirmation of the Chrysler ratings anticipates that the transaction, which will give Fiat 100% ownership of Chrysler and is expected to close by January 20, 2014, will facilitate further integration of the financial and operating strategies of the two companies. The benefits of this integration to Chrysler, however, will be mitigated by the use of a portion of Chrysler's balance sheet liquidity to facilitate Fiat's purchase of the shares. No decision has been announced concerning the final legal and financial reporting structure that Chrysler will maintain as a result of its being 100%-owned by Fiat. Consequently Moody's is maintaining separate CFRs for each company. As part of the transaction, Chrysler will make a $1.9 billion special distribution to its members (pro rata to Fiat and the VEBA Trust) and will also make four equal annual contributions of $175 million ($700 million in total) to the VEBA Trust. The initial $175 million payment will be made on closing of the transaction. Consequently, Chrysler's total cash payment upon the closing will be $2.1 billion and is expected to be funded by cash on hand. Chrysler's liquidity position at September 2013 consisted of $11.5 billion in cash and securities, and $1.3 billion in available credit facilities. In addition, the company expects to generate in excess of $800 million in free cash flow during the fourth quarter of 2013. This gross liquidity position of approximately $13.6 billion would be reduced to approximately $11.5 billion as a result of the transaction. Despite this reduction in liquidity, Chrysler would have adequate capacity to fund major cash requirements. These requirements include $600 million in current maturities of long term debt and approximately $3 billion that we estimate is needed to fund intra period working capital requirements. Nevertheless, this reduction in liquidity is a credit negative given the pronounced cyclicality of the sector and the need to be able to fund product development programs through the cycle. Chrysler's B1 CFR continues to benefit from the healthy market acceptance of its new product offerings, favorable market share performance and continued recovery of demand in the US automotive market. We expect that US industry shipments during 2014 will grow by 3% to 16.25 million units from approximately 15.8 million units during 2013. These positive factors are tempered by the company's relatively modest new product introduction schedule for 2014, and by the challenges faced as it integrates with Fiat. Ongoing weakness in Fiat's core European and Brazilian markets will continue to stress the operating performance, credit metrics and cash generation of the combined group. Chrysler's credit metrics for the twelve months through September 2013 (reflecting Moody's standard adjustments) provide adequate support for the B1 CFR, and include: EBITA margin - 4.2%; EBITA/interest - 1.6x; and debt/EBITDA - 4.0x. There could be upward potential for the rating over the long term if Fiat demonstrates progress in addressing its challenges in Europe and Brazil, and if Chrysler's legal and priority of claim structure preserves the interest of its creditors as the company is further integrated into Fiat. Upward rating movement would also be contingent upon Chrysler continuing to successfully implement its portfolio revitalization plan. Metrics that could support consideration for a higher rating include an ability to maintain an EBITA margin of 5%, EBITA/interest above 2x, and free cash flow that approaches $2 billion. Chrysler's rating could come under downward pressure if the company's product renewal program stalls due to flawed execution or poor consumer acceptance. An additional source of pressure on Chrysler's rating could develop if Fiat's operating performance continues to erode and causes additional financial or operating strain on Chrysler as part of the integrated group. Credit metric levels at Chrysler that might signal pressure on its rating include EBITA margin of 3.5% and EBITA/interest below 1.5x for a sustained period. The principal methodology used in this rating was the Global Automobile Manufacturer Industry published in June 2011. Other methodologies used include Loss Given Default for Speculative- Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. COMARCO INC: Has $551-K Net Income in Oct. 31 Quarter ----------------------------------------------------- Comarco, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q, reporting a net income of $551,000 on $1.51 million of revenues for the three months ended Oct. 31, 2013, compared to a net loss of $2.24 million on $1.13 million of revenues for the same period in the prior year. The Company's balance sheet at Oct. 31, 2013, showed $2.39 million in total assets, $9.78 million in total liabilities, and stockholders' deficit of $7.39 million. A copy of the Form 10-Q is available at: http://is.gd/4d9sfp About Comarco Inc. Based in Lake Forest, California, Comarco, Inc. (OTC: CMRO) -- http://www.comarco.com/-- is a provider of innovative, patented mobile power solutions that can be used to power and charge notebook computers, mobile phones, and many other rechargeable mobile devices with a single device. Comarco disclosed a net loss of $5.59 million on $6.33 million of revenue for the year ended Jan. 31, 2013, as compared with a net loss of $5.31 million on $8.06 million of revenue for the year ended Jan. 31, 2012. Comarco's balance sheet at July 31, 2013, showed $2.93 million in total assets, $10.89 million in total liabilities and a $7.95 million total shareholders' deficit. Squar, Milner, Peterson, Miranda & Williamson, LLP, 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 and negative cashflow from operations, has negative working capital and uncertainties surrounding the Company's ability to raise additional funds. These factors, among others, raise substantial doubt about its ability to continue as a going concern. COMMUNITY TOWERS: Fights SJTC on Turnover of Funds -------------------------------------------------- Community Towers I, LLC, et al., filed an objection to the request of San Jose Towers Corp., as the assignee of secured creditor CIBC, for court authorization requiring the Debtors to turnover all of the funds now remaining in the Debtors' In Possession Account. According to Mr. Conti, SJTC premises its motion on the claim that all of the funds in the DIP Account constitute "rents and profits" from the real property (which they have foreclosed upon), and to which they are allegedly entitled as "additional security" arising out of the loan transaction with the Debtors. The sole authority cited by SJTC for its alleged "right" to the DIP Account is Section 552(b)(2). "However, Section 552(b)(2), by its very terms, applies only to rents collected post-petition. Any right to post-petition rents does not 'ipso facto' entitle CIBC to the entire balance of the DIP Account. In fact, the DIP account does not contain exclusively post-petition rents and profits. Rather, it contains a significant portion of the Debtors' pre-petition operating profits which CIBC is not entitled to by virtue of the express terms of the party's agreement as well as applicable State law," Mr. Conti stated. The Debtors asserted in a filing dated Dec. 13, 2013, that SJTC is not entitled to a turnover of the DIP Account. The Debtors "do not deny that SJTC is entitled to the net rents and profits received post-petition to the extent they exceeded costs incurred in the operation of the real property during the pendency of this case. Based upon the Debtors' Monthly Operating Reports, the balance that SJTC is entitled to is $377,992.002. The Debtors respectfully assert that this is the maximum amount that the SJTC can claim as additional security in the DIP Account," William L. Conti, Esq., at the Law Offices of William L. Conti, the attorney for the Debtors, said. Mr. Conti stated, "By virtue of the express terms of the Deed of Trust and Security Agreement, and California Civil Code Section 2938, CIBC did not perfect its right to enforce the assignment of rents and profits of the property until Sept. 1, 2011, when they filed their Notice of Default. In fact, until such time as written Notice of Default is provided, Debtors had the absolute right to the rents and profits from the real property both by law and according to the parties' agreement." On Dec. 16, 2013, Vincent J. Novak, Esq., at Morrison & Foerster LLP, the attorney for SJTC, filed a response to the Debtors' objection, saying, "CIBC, and now SJTC, had a security interest in the rents collected prepetition that made such rents its cash collateral when the cases commenced, and makes them cash collateral today to the extent they remain in the accounts postpetition. The Debtors' analysis is that only the net increase in cash over the course of the cases is SJTC's cash collateral. The premise of this analysis is that the first dollars spent by the Debtors postpetition were always the cash collateral, and never the allegedly remaining unencumbered prepetition rents." SJTC is represented by: MORRISON & FOERSTER LLP Adam A. Lewis, Esq. Vincent J. Novak, Esq. Kristin A. Hiensch, Esq. 425 Market Street San Francisco, California 94105-2482 Tel: (415) 268-7000 Fax: (415) 268-7522 E-mail: ALewis@mofo.com VNovak@mofo.com KHiensch@mofo.com About Community Towers I Community Towers I LLC is a real estate investment company. Community Towers I LLC and various affiliates -- Community Towers II, LLC, Community Towers III, LLC, Community Towers IV, LLC -- filed a Chapter 11 petition (Bankr. N.D. Cal. Lead Case No. 11-58944) on Sept. 26, 2011, in San Jose, California. Community Towers I disclosed $51,939,720 in assets and $39,479,784 in liabilities as of the Chapter 11 filing. John Walshe Murray, Esq., at Dorsey & Whitney LLP, represents the Debtor as counsel, in substitution for Murray & Murray, A Professional Corporation. ACM Capital serves as financial advisor. Community Towers I, LLC, et al., submitted to the U.S. Bankruptcy Court for the Northern District of California a Disclosure Statement explaining the Second Amended Joint Plan of Reorganization dated Aug. 16, 2013. As reported in the Troubled Company Reporter on March 5, 2013, the Court denied confirmation of the prior version of the Debtors' Joint Chapter 11 Plan. CIBC Inc., voted against the Joint Plan and opposed confirmation contending that the Joint Plan (1) improperly includes a third party release in violation of 11 U.S.C. Section 524; violates Section 1129(a)(11) because it is not feasible; and is not fair and equitable to CIBC because the interest rate proposed to be paid is inadequate to compensate CIBC for the risk inherent in its loan to Debtors. CLERMONT SCAPES: Filed for Chapter 7 Liquidation ------------------------------------------------ Orlando Sentinel reports that Clermont Scapes Inc., filed for liquidation under Chapter 7 of the U.S. Bankruptcy on Dec. 17. Clermont Scapes Inc. is located in 17712 N. Highway 33, Groveland. It disclosed liabilities of $1.46 million. Major creditors are: -- SunTrust Bank, Baltimore, Md., $550,000; -- SunTrust Bank, Richmond, Va., $193,263; -- BB&T, Charlotte, N.C., $136,000. A meeting of creditors is set for Jan. 16. COOPER-BOOTH WHOLESALE: Seeks 3rd Plan Filing Extension Thru March ------------------------------------------------------------------ Cooper-Booth Wholesale, L.P., et al., filed a third motion seeking an extension of their exclusive plan filing period through March 31, 2014, and their exclusive plan solicitation period through May 31, 2014. The Debtors disclose that they are engaged in discussions and negotiations with PNC Bank, Zurich American Insurance Company, the Creditors Committee, and individual creditors in order to explore various options available to formulate a feasible plan or plans. The discussions are ongoing, they aver. The Debtors also relate that they need the additional time to consider additional proposals that that they expect will be extended in order to fund a plan or plans. The Debtors' current exclusive plan filing period is set to expire on Jan. 16, 2014. About Cooper-Booth Wholesale Cooper-Booth Wholesale Company, L.P. and two affiliates sought Chapter 11 protection (Bankr. E.D. Pa. Lead Case No. 13-14519) in Philadelphia on May 21, 2013, after the U.S. government seized the Company's bank accounts to recover payments made by a large customer caught smuggling Virginia-stamped cigarettes into New York. Serving the mid-Atlantic region, Cooper is one of the top 20 convenience store wholesalers in the country. Cooper supplies cigarettes, snacks, beverages and other food items from Hershey's, Lellogg's, Bic, and Mars to convenience stores. Cooper has been in the wholesale distribution business since 1865 when the Booth Tobacco Company was incorporated in Lancaster, Pennsylvania. The Company has been family owned and operated for three generations. Aris J. Karalis, Esq., and Robert W. Seitzer, Esq., at Maschmeyer Karalis, P.C., in Philadelphia, serve as the Debtors' bankruptcy counsel. Executive Sounding Board Associates, Inc., is the financial advisor. SSG Advisors, LLC, serves as investment bankers. Blank Rome LLP represents the Debtor in negotiations with federal agencies concerning the seizure warrant. Roberta A. DeAngelis, the U.S. Trustee for Region 3, appointed three members to the Official Unsecured Creditors' Committee in the Chapter 11 case. Cooper-Booth disclosed $58,216,784 in assets and $35,054,482 in liabilities as of the Chapter 11 filing. As of the Petition Date, the Debtors' total consolidated funded senior debt obligations were approximately $10.7 million and consisted of, among other things, $7.72 million owing on a revolving line of credit facility, $2.83 million owing on a line of credit for the purchase of equipment, and $166,000 due on a corporate VISA Card. PNC Bank asserts that a letter of credit facility is secured by all personal property owned by Wholesale. Unsecured trade payables totaled $22.8 million as of May 21, 2013. COOPER TIRE: Merger Termination No Impact on Moody's 'B1' CFR ------------------------------------------------------------- Moody's Investors Service said that the recent announcement by Cooper Tire & Rubber Company that it has terminated the merger agreement with Apollo Tyres is viewed as a credit positive development, but does not impact Cooper Tire's current B1 Corporate Family Rating and review for possible downgrade. "We anticipate that the termination of the merger agreement will reduce the prospects for a significant increase in financial leverage and will resolve the work stoppage at the Cooper Chengshan Tire joint venture, which are considered positive developments. However, we also believe that weaker operating trends experienced in second quarter 2013 results are likely to further adversely affect the company's financial performance, and that in the absence of the merger with Apollo, Cooper's initiatives to enhance shareholder value will need to be reassessed, resulting in the ongoing review for possible downgrade. The last rating action for Cooper Tire was on June 17, 2013 when the company's B1 Corporate Family Rating was placed under review for possible downgrade. The principal methodology used in this rating was the Global Automotive Supplier Industry Methodology published in May 2013. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. Cooper Tire & Rubber Company, headquartered in Findlay, OH, is the fourth largest tire manufacturer in North America and is focused on the replacement markets for passenger cars and light and medium duty trucks. Revenues for the LTM period ending June 2013 were approximately $3.9 billion. DESIGNER FURNITURE: Liquidation Sale Underway --------------------------------------------- Ian Hicks at the Herald Star reports that about six weeks after filing for Chapter 11 bankruptcy protection, Designer Furniture Warehouse on Thursday began selling off inventory as it prepares to close stores in St. Clairsville and seven other locations in Ohio and Western Pennsylvania. Other stores that will be closing include New Philadelphia, Zanesville, Chillicothe, Niles and Heath in Ohio; and Washington and Pleasant Hills in Pennsylvania, according to Herald Star. The report notes that as the various stores get rid of inventory during the liquidation sale, remaining stock will be shifted around to various locations, so it's unclear when the St. Clairsville store, located on Banfield Road near the Ohio Valley Mall, will close its doors for good. About Designer Furniture Warehouse Designer Furniture Warehouse, LLC, doing business as DFW Furniture, operates stores in Ohio, West Virginia, and Pennsylvania. DFW sought Chapter 11 bankruptcy protection (Bankr. S.D. Ohio Case No. 13-59015) on Nov. 13, 2013. Attorneys at Allen, Kuehnle Stovall & Neuman LLP represent the Debtor. The Debtor estimated assets and debt of $1 million to $10 million. DETROIT, MI: Closing Arguments Continue in Swap Settlement ---------------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that on Jan. 6 the bankruptcy judge in Detroit will hear closing arguments by those opposed to the city's proposed $165 million settlement of a swap contract. According to the report, the judge heard Detroit's closing argument on Jan. 3, explaining why settlement is better than the risk and expense of trial. Objectors contend the swap agreement violated state law and should be void. The new settlement saves Detroit $65 million compared with the first version of the settlement. Bond insurers are opposing the settlement. Mediators, both federal judges, recommended that the bankruptcy court approve the settlement. The settlement, if approved, would enable Detroit to invest $120 million in infrastructure while reducing a loan from $350 million to $285 million. 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. DISPENSING DYNAMICS: S&P Retains 'B-' Corporate Credit Rating ------------------------------------------------------------- Standard & Poor's Ratings Services said it revised its recovery rating on U.S.-based towel and tissue dispenser manufacturer Dispensing Dynamics International's $130 million senior secured notes to '4' from '3', indicating average (30% to 50%) recovery in the event of default. The 'B-' corporate credit and issue-level ratings on the company remain unchanged. The recovery rating revision occurred as part of S&P's ongoing ratings surveillance process. The corporate credit rating on Dispensing Dynamics International reflects the combination of what we consider to be the company's "vulnerable" business risk profile and "highly leveraged" financial risk profile. S&P's view of the company's vulnerable business risk profile is due to its one manufacturing plant, customer concentration, and small size and scope. Still, the company has a leading share in its niche markets. Standard & Poor's views Dispensing Dynamics International's financial risk profile as highly leveraged given S&P's expectation that debt to EBITDA will be more than 7x at the end of 2013. S&P also expects that the company will generate minimal cash flow going forward, resulting in very low funds from operations (FFO) relative to debt because S&P expects FFO to debt to remain less than 5% in the next 12 to 24 months. To a lesser extent, S&P's opinion is influenced by the company's uncertain financial policies related to its ownership by private equity. Rating List Dispensing Dynamics International Corporate Credit Rating B-/Negative/-- Rating Unchanged; Recovery Rating Revised TO FROM Dispensing Dynamics International $130 mil sr secd nts B- B- Recovery Rating 4 3 DREIER LLP: Suits Against Amaranth, Westford Go to Trial -------------------------------------------------------- Bankruptcy Judge Stuart M. Bernstein denied cross motions for summary judgment filed in the lawsuits, SHEILA M. GOWAN, Chapter 11 Trustee for DREIER LLP, Plaintiff, v. AMARANTH ADVISORS L.L.C., and AMARANTH PARTNERS LLC, Defendants; and SHEILA M. GOWAN, Chapter 11 Trustee for the Estate of Dreier LLP, Plaintiff, v. WESTFORD ASSET MANAGEMENT LLC, et al., Defendants, Adv. Proc. No. 10-03493 (SMB)., 10-05447(SMB) (Bankr. S.D.N.Y.). Sheila M. Gowan, the chapter 11 trustee of the estate of Dreier LLP, commenced the two adversary proceedings to recover transfers made in connection with a Ponzi scheme allegedly conducted by Marc S. Dreier, the sole equity partner of Dreier LLP. The Chapter 11 Trustee moved for partial summary judgment in each proceeding to recover the "profits" that the transferees received. Certain of the defendants in the Westford Proceeding have cross- moved to dismiss the adversary proceeding. According to Judge Bernstein, the Motions turn on whether the Chapter 11 Trustee has established as a matter of law that Marc ran a Ponzi scheme and made transfers to the defendants in connection with that scheme. "Although much has been written and said over the past five years about Marc and his activities, including by Marc himself, my review is limited to the record presented on each Motion. In each case, the record is not sufficient to conclude as a matter of law that Marc conducted a Ponzi scheme or made the transfers in connection with a Ponzi scheme, and accordingly, the Motions are denied," the judge said in a Jan. 2 Memorandum Decision available at http://is.gd/kKKDOd from Leagle.com. The Cross-Motion contends that the Chapter 11 Trustee cannot establish that certain of the Westford Defendants were subsequent transferees of the transfers that form the basis of the Westford Proceeding. Part of the Cross-Motion was resolved through a stipulation dismissing the adversary proceeding as to certain Westford Defendants with prejudice. Three cross-moving Westford Defendants remain, and the Cross-Motion is denied as to them. J. Benjamin King, Esq., at REID COLLINS & TSAI LLP; and Howard D. Ressler, Esq., and Steven T. Loden, Esq., at DIAMOND McCARTHY LLP, represent Sheila M. Gowan, Chapter 11 Trustee for the Estate of Dreier LLP. Steven Schwartz, Esq., Robert Michels, Esq., Stephen Senderowitz, Esq., and Beth A. Tagliamonti, Esq., at WINSTON & STRAWN LLP, argue for Amaranth Advisors L.L.C., and Amaranth Partners LLC. Steven C. Bennett, Esq., Howard F. Sidman, Esq., Michael D. Silberfarb, Esq., and Tobias S. Keller, Esq., at JONES DAY, argue for Westford Asset Management, LLC, et al. DUNLAP OIL: Panel Backs Bid for Plan Order Reconsideration ---------------------------------------------------------- The Unsecured Creditors Committee of Dunlap Oil Company, Inc., et al., supports the Debtor's motion for reconsideration of the ruling on confirmation and stay relief. In a filing dated Dec. 13, 2013, Dean M. Dinner, Esq., at Nussbaum Gillis & Dinner, P.C., the attorney for the Committee, said that his client believes that reorganization of the Debtors is in the best interest of all parties. "In light of the positions taken by certain of the secured creditors, reorganization appears to represent the best means for the unsecured creditors to receive some recovery on their claims," Mr. Dinner stated. As reported by the Troubled Company Reporter on Dec.4, 2013, the Debtor asked the U.S. Bankruptcy Court for the District of Arizona to reconsider the ruling issued on Nov. 18, 2013, denying confirmation of their First Amended Joint Plan of Reorganization dated Feb. 14, 2013, as amended or modified, and granting stay relief to Canyon Community Bank. The Debtors explained that their principals have been able to generate additional sources of cash for funding the Plan through: (i) an additional equity infusion of $100,000 (which brings the total equity infusion to $250,000); (ii) favorable credit terms from suppliers which will generate more than $100,000 in additional cash on an annual basis; (iii) $50,000 in annual salary deferrals from management (Ted Dunlap and Jim Martin); (iv) the sale of surplus Rolling Stock that will result in an immediate $250,000 reduction in secured debt, and (v) a very likely sale of the Quail Hollow Inn that will reduce secured debt by an additional $2,000,000. The $100,000 cash value of a DOC key man life insurance policy also can provide additional liquidity for the Plan. The Debtor requested that the motion to reconsider be heard on Dec. 12. Also on Dec. 12, a hearing was set for the Court to consider a request to convert the Debtors' cases to a liquidation in Chapter 7, and another request to allow secured creditors to foreclose on the Wilcox, Arizona-based gasoline supplier. On Dec. 17, 2013, the Court rescheduled the hearings. From Dec. 12, 2013, the hearing has been moved to Jan. 28, 2014, at 10:00 a.m. About Dunlap Oil and Quail Hollow Inn Dunlap Oil Company, Inc., and Quail Hollow Inn, LLC, sought Chapter 11 protection (Bankr. D. Ariz. Case No. 12-23252 and 12-23256) on Oct. 24, 2012. Founded in 1958, Dunlap Oil is a Willcox, Arizona-based operator of 14 gasoline services stations. QOH owns the 89-room outside corridor Best Western Plus Quail Hollow hotel in Willcox. The two companies are owned and operated by the Dunlap family. The Hon. Brenda Moody Whinery presides over the case. John R. Clemency, Esq., and Lindsi M. Weber, Esq., at Gallagher & Kennedy, P.A., serve as the Debtors' counsel. Peritus Commercial Finance LLC serves as financial advisor. Quail Hollow Inn also hired Sally M. Darcy of McEvoy Daniels & Darcy P.C. for the limited purpose of handling any claims, issues, and/or disputes between QHI and Best Western International, Inc. The Debtors' lead counsel, Gallagher & Kennedy, P.A., has a conflict precluding its representation of the Debtor in matters relating to Best Western. QOH declared assets of at least $1 million and debts exceeding $10 million. DOC estimated assets and debts of $10 million to $50 million. The petitions were signed by Theodore Dunlap, president. Ilene J. Lashinsky, the U.S. Trustee for Region 14, has appointed three creditors to serve on an Official Committee of Unsecured Creditor for the Chapter 11 bankruptcy case of Dunlap Oil Company. The Committee tapped Nussbaum Gillis & Dinner, P.C., as its counsel. Pineda Grantor Trust II, successor-in-interest to Compass Bank, is represented by Steven N. Berger, Esq., and Bradley D. Pack, Esq., at Engelman Berger, P.C. Canyon Community Bank NA is represented by Pat P. Lopez III, Esq., Rebecca K. O'Brien, Esq., and Jeffrey G. Baxter, Esq., at Rusing Lopez & Lizardi, P.L.L.C. EDDIE MONTGOMERY: Country Singer Files in Kentucky -------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that Eddie Montgomery, half of the country singing group Montgomery Gentry, filed a Chapter 7 petition on Dec. 31. According to the report, his property includes a home in Perryville, Kentucky, with a $4.9 million mortgage, three autos and two motorcycles. He also listed four dogs valued at $80. Total assets are $1.9 million, and debt is $14 million, according to schedules filed with the U.S. Bankruptcy Court in Lexington, Kentucky. Montgomery is asking the bankruptcy court to permit nondisclosure about some of his business interests, such as the value of his half ownership in the singing group. Central Bank & Trust Co. of Lexington is a secured creditor, owed $4.2 million. Montgomery said he has claims of unknown value against his former wife. One of Montgomery Gentry's biggest hits is "Daddy Won't Sell the Farm." The case is In re Gerald Edward Montgomery, 13-53099, U.S. Bankruptcy court, Eastern District of Kentucky (Lexington). ELBIT IMAGING: Inks Definitive Agreement with Bank Hapoalim ----------------------------------------------------------- Elbit Imaging Ltd., following the receipt of the requisite approval from its unsecured financial creditors, has entered into a definitive agreement with Bank Hapoalim B.M. on the basis of the general terms of agreement that were approved by the Company's unsecured financial creditors. Consequently, the condition precedent included in the adjusted plan of arrangement described in the Company's press release dated Sept. 18, 2013, (and which was submitted to the Tel-Aviv Jaffa District Court (the "Court") in file No. 42576-02-13), pursuant to which an understanding will have been reached between the Company and the Bank, was fulfilled. The closing of the Definitive Agreement is subject to certain other conditions precedent, including the approval of the Arrangement by the Court, the closing of the Arrangement and such other customary conditions precedent. About Elbit Imaging Tel-Aviv, Israel-based Elbit Imaging Ltd. (TASE, NASDAQ: EMITF) hold investments in real estate and medical companies. The Company, through its subsidiaries, also develops shopping and entertainment centers in Central Europe and invests in and manages hotels. Elbit Imaging disclosed a loss of NIS455.50 million on NIS671.08 million of total revenues for the year ended Dec. 31, 2012, as compared with a loss of NIS247.02 million on NIS586.90 million of total revenues for the year ended Dec. 31, 2011. Brightman Almagor Zohar & Co., in Tel-Aviv, Israel, expressed substantial doubt about Elbit Imaging's ability to continue as a going concern following the financial results for the year ended Dec. 31, 2012. The Certified Public Accountants noted that in the period commencing Feb. 1, 2013, through Feb. 1, 2014, the Company is to repay its debenture holders NIS 599 million (principal and interest). "Said amount includes NIS 82 million originally payable on Feb. 21, 2013, that its repayment was suspended following a resolution of the Company's Board of Directors. The Company's Board also resolved to suspend any interest payments relating to all the Company's debentures. In addition, as of Dec. 31, 2012, the Company failed to comply with certain financial covenants relating to bank loans in the total amount as of such date of NIS 290 million. The Company's balance sheet at Sept. 30, 2013, showed NIS4.83 billion in total assets, NIS4.96 billion in total liabilities and a NIS122.24 million shareholders' deficiency. Since February 2013, Elbit has intensively endeavoured to come to an arrangement with its creditors. Elbit has said it has been hanging by a thread for more than five months. It has encountered cash flow difficulties and this burdens its day to day activities, and it certainly cannot make the necessary investments to improve its assets. In light of the arrangement proceedings, and according to the demands of most of the bondholders, as well as an agreement that was signed on March 19, 2013, between Elbit and the Trustees of six out of eight series of bonds, Elbit is prohibited, inter alia, from paying off its debts to the financial creditors -- and as a result a petition to liquidate Elbit was filed, and Bank Hapoalim has declared its debts immediately payable, threatening to realize pledges that were given to the Bank on material assets of the Company -- and Elbit undertook not to sell material assets of the Company and not to perform any transaction that is not during its ordinary course of business without giving an advance notice to the trustees. Accountant Rony Elroy has been appointed as expert for examining the debt arrangement in the Company. In July 2013, Elbit Imaging's controlling shareholders, Europe- Israel MMS Ltd. and Mr. Mordechay Zisser, notified the Company that the Tel Aviv District Court has appointed Adv. Giroa Erdinast as a receiver with regards to the ordinary shares of the Company held by Europe Israel securing Europe Israel's obligations under its loan agreement with Bank Hapoalim B.M. The judgment stated that the Receiver is not authorized to sell the Company's shares at this stage. Following a request of Europe-Israel, the Court also delayed any action to be taken with regards to the sale of those shares for a period of 60 days. Europe Israel and Mr. Zisser have also notified the Company that they utterly reject the Bank's claims and intend to appeal the Court's ruling. EXECUTIVE INN: New Owner to Conduct Liquidation Sales ----------------------------------------------------- Daily Republican Register reports that Andrews Oil Company, a three generation family-owned and operated company based in Mt. Carmel, Illinois, has confirmed the purchase of the seven-acre property, commonly known as the Executive Inn, located in Vincennes, Ind., effective Dec. 31, 2013. Immediate plans for the 172-room hotel are to start with the process of getting the structure permitted for access in order to have a liquidations sale that is expected near the end of January. ICL from Dayton, Ohio has been named as the liquidation contractor, according to Daily Republican Register. The report relates that after the liquidation sale, Klenk Company of Evansville, Ind., will begin with the demolition of the entire facility, which is expected to be completed by the end of April. The Construction of the new convenience store will begin in May, the report notes. Andrews Oil Company, owned and operated by Rick and Becky Andrews of Mt. Carmel, owns and operates Fastbreak convenience stores located in Princeton, Ind., Ft. Branc, Ind., Evansville, Ind., and Mt. Carmel. FCC HOLDINGS: S&P Retains 'CCC+' ICR on CreditWatch Negative ------------------------------------------------------------ Standard & Poor's Ratings Services said its 'CCC+' issuer credit and senior unsecured debt ratings on New York, N.Y.-based finance company FCC Holdings LLC remain on CreditWatch with negative implications. "The ratings remain on CreditWatch following the company's announcement that it expects to take an additional $20 million provision in the fourth quarter and despite progress it has made in seeking an amendment to a covenant on its senior unsecured notes," said Standard & Poor's credit analyst Richard Zell. S&P placed its ratings on FCC on CreditWatch negative on Nov. 19, 2013, after it became clear that the company was on track to violate a $125 million minimum tangible net worth (TNW) covenant on its unsecured debt. Positively, FCC's bondholders have now waived the required compliance for Dec. 31, 2013, and will likely agree to permanently reduce the covenant to $100 million. (FCC is currently seeking consent.) However, even with a permanent reduction in the TNW covenant, FCC could still be in danger of a breach in first-quarter 2014 because of the $20 million "special" provision. S&P believes the company's TNW is likely to be about $100 million and possibly below as of year-end 2013 following that provision. "We expect to resolve the CreditWatch no later than when the company reports its first-quarter 2014 results and possibly sooner," said Mr. Zell. "We could lower the rating if the company once again appears set to violate the newly reduced TNW covenant and does not present a credible plan to avoid violation. We could affirm the 'CCC+' rating and remove it from CreditWatch if the company can build a modest TNW cushion -- through a capital raise or earnings retention -- and demonstrate that TNW will remain stable or increase." FISKER AUTOMOTIVE: Hybrid Tech Sweetens Offer --------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that Hybrid Tech Holdings LLC sweetened its offer for defunct electric-auto maker Fisker Automotive Inc., to fend off a competing bid from Wanxiang Group Corp. that's supported by the official creditors' committee. According to the report, at a confirmation hearing set for Jan. 10 in Delaware, Fisker will ask the bankruptcy judge to approve the Chapter 11 plan and a sale to Hybrid, without an auction to test the market for higher offers. The committee filed papers last week proposing to hold an auction with a first bid of $25.8 million in cash from China's Wanxiang. Hybrid is under contract to buy the business in exchange for $75 million of the $168.5 million government loan it bought immediately before Fisker's Chapter 11 filing on Nov. 22. Last week, Hybrid improved its offer by adding an additional $1 million cash and agreeing to share proceeds from the sale of a facility in Delaware it doesn't intend to operate. Hybrid will also pay real estate taxes on the Delaware plant. In court papers, Fisker cited advantages to the Hybrid contract, as modified: $1.5 million in cash plus payment of Delaware taxes, on top of some proceeds from the plant's sale. In addition, Hybrid will waive $90 million in deficiency claims that otherwise would dilute unsecured creditors' recovery. Fisker characterized Wanxiang's offer as "free option" because it contains "open-ended walk-away rights." The Wanxiang proposal is based on a requirement that the bankruptcy court limit Hybrid's credit bid to $25 million, the price it paid to buy the loan from the government. Fisker argues there's no basis for capping the right to credit bid, or pay for assets using secured claims rather than cash. The committee asked the judge to call for an auction on Jan. 31. The request for an auction is another topic for argument at the Jan. 10 hearing. 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. 13-13087) on Nov. 22, 2013, with plans to sell the business to Hybrid Tech Holdings, LLC. Fisker estimated assets of more than $100 million and listed debt of $500 million in its bankruptcy petition. The assets include an assembly 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. The Debtors have tapped James H.M. Sprayregen, P.C., Esq., Anyp Sathy, P.C., Esq., and Ryan Preston Dahl, Esq., at Kirkland & Ellis LLP, in Chicago, Illinois, as co-counsel; Laura Davis Jones, Esq., James E. O'Neill, Esq., and Peter J. Keane, Esq., at Pachulski Stang Ziehl & Jones LLP, in Wilmington, Delaware, as co- counsel; Beilinson Advisory Group as restructuring advisors; and Rust Consulting/Omni Bankruptcy, as notice and claims agent and administrative advisor. The Debtors disclosed that they have entered into an asset purchase agreement with Hybrid for the sale of substantially all of its assets. Hybrid is represented by Tobias Keller, Esq., and Peter Benvenutti, Esq., at Keller & Benvenutti LLP, in San Francisco, California. FOX & HOUND: Coca-Cola, Landlords on Creditors' Committee --------------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that the Fox & Hound, Champps and Bailey's Sports Grille casual dining restaurants have an official creditor's committee with seven members, including Coca-Cola Co. According to the report, the restaurants filed for Chapter 11 reorganization on Dec. 15. The U.S. Trustee named the committee on Jan. 3. Other members include landlords Simon Property Group Inc., General Growth Properties Inc. and real estate investment trust DDR Corp. The restaurants aim to sell the businesses by early March. There will be a hearing tomorrow for approval of auction and sale procedures. There are 101 stores in 27 states. Sales declined 9 percent in the past two years. Liabilities total $119 million, including $68.4 million owing on a first-lien loan with General Electric Capital Corp. as agent. The senior lenders are to providing financing for the bankruptcy. Cerberus Business Finance LLC serves as agent for the $11.2 million second-lien obligation. Unsecured trade suppliers and landlords are owed $11.2 million, according to a court filing. The petition lists assets valued at more than $100 million. Revenue in 2012 was $297.6 million. For the first nine months of 2013, revenue was $218.8 million. The parent holding company, F&J Acquisition Corp. is located in Wichita, Kansas. About Fox and Hound Wichita, Kansas-based F & H Acquisition Corp., et al., owners of the Fox & Hound, Champps, and Bailey's Sports Grille casual dining restaurants, filed a Chapter 11 petition (Bankr. D. Del. Lead Case No. 13-13220) on Dec. 16, 2013, to quickly sell their assets. As of the bankruptcy filing, the Debtors have 101 restaurants located in 27 states and 6,000 employees. Sales decreased by approximately 9 percent over the past two years. The Debtors also experienced significant inflation in commodity prices, energy prices and labor costs. F&H estimated assets in excess of $100 million. According to a court filing, outstanding debt obligations total $119 million, including $68.4 million owing on a first-lien loan with General Electric Capital Corp. as agent. The $11.2 million second-lien obligation has Cerberus Business Finance LLC as agent. Unsecured trade suppliers and landlords are owed $11.2 million. The senior lenders are to provide $9.6 million in financing for the bankruptcy, with $3.5 million on an interim basis. The parent holding company, F&H Acquisition Corp., is based in Wichita, Kansas. The Debtors have tapped Young, Conaway, Stargatt & Taylor, LLP, as local counsel, Olshan Frome Wolosky LLP as general counsel, Imperial Capital LLC as financial advisor, and Epiq Bankruptcy Solutions as claims and noticing agent. FNBH BANCORP: Plans to Conduct Rights Offering to Shareholders -------------------------------------------------------------- FNBH Bancorp, Inc., holding company for First National Bank in Howell, intends to conduct a rights offering to existing shareholders of up to $1.6 million. The proposed rights offering would be made through the distribution of nontransferable subscription rights to all eligible shareholders as of Jan. 8, 2014, the record date established for the rights offering. The Company has filed a registration statement on Form S-1 with the Securities and Exchange Commission to register up to 2.3 million shares of common stock underlying the rights. The Company intends to distribute the rights, and commence the offering, promptly after its registration statement is declared effective by the SEC. A copy of the Form S-1 prospectus is available for free at: http://is.gd/LJ9WZd Under the terms of the proposed rights offering, eligible shareholders will receive, at no charge, one right for each share of common stock held as of the record date. Each right will entitle the holder to purchase up to six shares of the Company's common stock for every one share of common stock owned by the holder as of the record date, which is referred to as the "basic subscription privilege." The exercise price of the rights will be $0.70 per share of common stock, which is the same price, on an as-converted basis, at which shares of the Company's Series B preferred stock were sold in the private placement transaction the Company closed earlier in December 2013. As a condition to participating in that private placement, each investor in the private placement agreed not to participate in the rights offering. The proposed rights offering will also include an oversubscription privilege, which will entitle a shareholder who exercises its entire basic subscription privilege the right to purchase additional shares of common stock that are not purchased by other shareholders through the exercise of their basic subscription privileges, subject to the availability and pro rata allocation of shares among persons exercising this oversubscription privilege, and other limitations described in the registration statement. The proceeds from the rights offering are expected to be contributed to the Company's subsidiary bank or held by the Company for working capital or future contribution to the bank. The rights offering will be made only by means of a prospectus, copies of which will be mailed to all eligible record date shareholders. Issues 7,500 Preferred Shares to S. Dickson As previously disclosed in a current report on Form 8-K filed by the Company with the SEC on June 14, 2013, Mr. Stanley B. Dickson, Jr., a director of the Company and its subsidiary bank, agreed to purchase 7,500 shares of Preferred Stock in the private placement transaction. Effective with the closing of the private placement transaction on Dec. 11, 2013, the Company issued these 7,500 shares of Preferred Stock to Mr. Dickson. The purchase price for the shares was $7,500,000 ($1,000 per share), less a 6 percent commitment fee. The net investment of $7,050,000 was made by Mr. Dickson using his personal funds. Prior to the issuance of these shares, Mr. Dickson was the beneficial owner of 51,743 shares of the Company's common stock, all of which were held by Moross Limited Partnership. Mr. Dickson is the President of the general partner of Moross Limited Partnership. In December 2013, Mr. Dickson acquired these shares of common stock from Moross Limited Partnership. As a result, Mr. Dickson currently owns 51,743 shares of the Company's common stock and 7,500 shares of the Preferred Stock, which are convertible into 10,714,285 shares of the Company's common stock. Therefore, on a fully-diluted basis (assuming the conversion into common stock of all of the outstanding shares of Preferred Stock), Mr. Dickson currently owns approximately 42 percent of the Company's common stock. As previously disclosed, in connection with Mr. Dickson's investment, the Company has agreed that (a) as long as Mr. Dickson beneficially owns 15 percent of the Company's outstanding common stock, he will be entitled to appoint two representatives to the respective Boards of Directors of the Company and the Bank (inclusive of his current Board seat), subject to certain terms and conditions, (b) as long as Mr. Dickson beneficially owns 30 percent of the Company's outstanding common stock, he will be entitled to appoint a third representative to the respective Boards of Directors of the Company and the Bank, subject to certain terms and conditions, and (c) the Company will be required to obtain Mr. Dickson's prior consent to increase the size of the Board of Directors to a number greater than nine. A copy of the Form 8-K, as amended, is available for free at: http://is.gd/NL5DuF About FNBH Bancorp Howell, Michigan-based FNBH Bancorp, Inc., is a one-bank holding company, which owns all of the outstanding capital stock of First National Bank in Howell. The Bank was originally organized in 1934 as a national banking association. As of Dec. 31, 2011, the Bank had approximately 85 full-time and part-time employees. The Bank serves primarily five communities, Howell, Brighton, Green Oak Township, Hartland, and Fowlerville, all of which are located in Livingston County. FNBH disclosed net income of $329,000 in 2012, as compared with a net loss of $3.57 million in 2011. The Company's balance sheet at Sept. 30, 2013, showed $301.79 million in total assets, $292.65 million in total liabilities and $9.14 million in total shareholders' equity. BDO USA, LLP, in Grand Rapids, Michigan, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2012. "The Corporation's subsidiary bank ("Bank") is significantly undercapitalized under regulatory capital guidelines and, during 2009, the Bank entered into a consent order regulatory enforcement action ("consent order") with its primary regulator, the Office of the Comptroller of the Currency. The consent order requires management to take a number of actions, including, among other things, increasing and maintaining its capital levels at amounts in excess of the Bank's current capital levels. As discussed in Note 20, the Bank has not yet met the higher capital requirements and is therefore not in compliance with the consent order. As a result of the uncertain potential impact of future regulatory actions, circumstances exist that raise substantial doubt about the Corporation's ability to continue as a going concern." FREESEAS INC: To Close $8.5MM Final Tranche of $10MM Investment --------------------------------------------------------------- FreeSeas Inc. will consummate the second and final tranche of the $10 million previously announced investment by Crede CG III, Ltd., a wholly-owned subsidiary of Crede Capital Group, LLC, an existing shareholder of the Company. Mr. Ion G. Varouxakis, chairman, president and CEO of the Company commented: "We are very pleased to close this transaction which injects much needed cash into the Company. The Company shall now be in a financial position to finance the dry-dockings of its fleet enabling the return to operation of the vessels at a very opportune time, as the market recovery gathers pace. This injection shall also position the Company for the acquisition of vessels that can immediately produce income. We look into the coming year with great expectations." At the closing, the Company will sell to the Investor 85,000 shares of the Company's Series C Convertible Preferred Stock for $8.5 million. The shares of Series C Preferred Stock to be issued will be convertible into shares of the Company's common stock at the lower of (i) $2.00 and (ii) the closing bid price of the Company's common stock on Dec. 30, 2013, and such conversion price will be the same as the conversion price of the shares of Series B Convertible Preferred Stock previously issued to the Investor on Nov. 4, 2013. 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. As of Sept. 30, 2013, the Company had $107.35 million in total assets, $106.63 million in total liabilities, all current, and $711,000 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. FREEZIA LLC: Case Summary & Unsecured Creditor ---------------------------------------------- Debtor: Freezia LLC 414 Isolde Drive Houston, TX 77024-4753 Case No.: 14-30054 Chapter 11 Petition Date: January 3, 2014 Court: United States Bankruptcy Court Southern District of Texas (Houston) Judge: Hon. Marvin Isgur Debtor's Counsel: Joan Kehlhof, Esq. WIST HOLLAND ET AL 720 N Post Oak Rd, Suite 610 Houston, TX 77024 Tel: 713-686-5444 Fax: 713-686-0703 Email: jkehlhof@whkllp.com Total Assets: $1.41 million Total Liabilities: $629,394 The petition was signed by Tracey Freezia, manager. The Debtor listed Kevin Kieschnick, Assessor & Collector/Taxes, Nueces City, as its largest unsecured creditor holding an $8,394 claim. FRIENDSHIP DAIRIES: Court Sees Cash Flow Crisis, Rejects Plan ------------------------------------------------------------- Bankruptcy Judge Robert L. Jones denied confirmation of Friendship Dairies' Second Amended Plan of Reorganization filed on July 2, 2013, as modified by the First Modification to Second Amended Plan filed on September 11, 2013. "An impending cash flow crisis is anticipated by the terms of the Plan. Friendship Dairies has incorporated multiple balloon payments in its proposals to creditors, but has provided no evidence of how the balloon payments will be paid. It is asking the Court to take yet another leap of faith that such balloons will somehow be satisfied through deferrals or refinancings. Friendship Dairies has over $45 million in debt with AgStar and Frontier alone. Lengthy amortizations with balloons will not put Friendship Dairies in a materially better position in the future. A hope of future financing appears futile. In light of Friendship Dairies' struggles during the case, its crushing debt load, and lack of capital or cushion of any sort, the Court can only conclude that the Plan will not work. Failing the feasibility requirement, the Plan cannot be confirmed," Judge Jones said in a Memorandum Opinion dated Jan. 3, 2014, available at http://is.gd/JAjwnFfrom Leagle.com. The sole objecting creditor, AgStar Financial Services, FLCA, as loan servicer and attorney-in-fact for McFinney Agri-Finance, LLC, said the Plan is not in the best interest of creditors, especially AgStar, and that it fails to satisfy the absolute priority rule. According to AgStar, Friendship Dairies cannot make the payments called for under the Plan and thus the Plan fails to satisfy the feasibility requirement of 11 U.S.C. Sec. 1129(a)(11). AgStar requests that Friendship Dairies be directed to surrender its collateral to AgStar or, alternatively, that the stay be lifted as requested by its pending motion seeking stay relief. AgStar also objects to specific provisions regarding treatment of its claim under the Plan. It submits that the 5% interest rate is too low in light of Friendship Dairies' circumstance and the risk associated with the credit as restructured. AgStar objects to the Plan's provisions providing that AgStar's attorneys' fees are not paid until 15 years and without interest. AgStar opposes Friendship Dairies' proposal that the restructured debt be evidenced by a new note and security instruments which, AgStar says, "omit necessary and customary covenants for dairy facility loans." The Plan reflects a reorganization proposal by which Friendship Dairies continues its dairy operations, albeit in a modernized, more efficient manner, as a means to potentially pay its creditors in full over a period of several years and at rates that accord its creditors the present value of their respective claims. Unsecured creditors may, in lieu of a payout, elect to receive a much-reduced immediate payment. The Plan has 18 classes of creditors and one class for the partners; the partners, Class 17, simply retain their partnership interests. Classes 1, 2, and 3 address the administrative, priority non-tax, and priority tax claim creditors, respectively. Classes 4 through 12 are asserted secured creditors. Classes 13 and 14 are special classes established for the treatment of the unsecured claim of Frontier Capital Group, Ltd. (Class 13) and the unsecured claims of affiliated persons, i.e., the partners Jakob Van DerWeg, Patrick VanAdrichem, and his wife Linda VanAdrichem (Class 14). Class 15 constitutes the general unsecured creditor class. Class 16 covers penalty claims. Finally, Class 17 addresses equity claims, with Classes 18 and 19 covering claims of co-obligors and subrogation claims. Friendship Dairies commits to paying administrative claims upon the effective date of the Plan which is, generally, the first day of the month following 30 days after confirmation of the Plan. It anticipates that administrative claims will be approximately $425,000, consisting of reclamation claims under 11 U.S.C. Sec. 503(b)(9), certain cure claims, and professional fee claims. The Debtor will also pay 2013 ad valorem taxes and U.S. Trustee fees. The claim of the Internal Revenue Service of $218,844.65 is the only priority claim of significance; the Plan provides that the IRS will be paid over 45 months at 3% interest, resulting in payments of $5,147.97 per month, beginning on the effective date. The Class 4 claimant, Deaf Smith County Appraisal District, holds a claim of $114,872.24 and will be paid over 60 months at 12% interest. The payments are $2,555.27 per month. John Deere Financial, the Class 5 secured creditor, holds three claims in the total amount of $180,225.33 and will be paid, on its three claims, the monthly sums of $471.07, $2,226.77, and $4,366.61, respectively. They are paid in accordance with the existing contracts between the parties. The interest rates on such claims range from 3.99% to 7.25% and will be paid out in approximately three years. The secured claim of Volvo Financial Services, Class 6, is paid out over seven months with payments of $11,613 per month, which payments satisfy a balloon payment obligation of $79,438.74 that came due in March 2013. The Plan reflects agreements that Friendship Dairies reached with Lone Star Milk Producers, Frontier, Gavilon Ingredients, LLC, and Dimmitt Flaking, LP, Classes 7, 8, 9, and 10 under the Plan. The agreements significantly altered the respective rights of such parties and were made, at least in part, to facilitate the Debtor's prospects in its reorganization effort. Lone Star's claim is treated as a secured claim for $400,000, secured by the Debtor's equity credits with Lone Star. Lone Star's claim is in the nature of an offset claim. It is paid through a $0.10 per hundredweight deduction on all milk proceeds payable to Friendship Dairies by Lone Star and by retention of 35% of the Debtor's annual patronage dividend. The claim bears interest at 5.5% per annum. Frontier has a total claim of $27,041,479.91, which, by agreement between Friendship Dairies and Frontier, is bifurcated into a secured claim for $16,700,000 and an unsecured deficiency claim of $11,041,479.91. (The additional $700,000 on its secured claim arises from Frontier's purchase of AgStar's lien position on milk and milk proceeds.) Frontier's secured claim is split into two notes, a large note of $16 million and a smaller note of $700,000. The large note provides for monthly payments over 60 months, with interest rates that adjust up on 12-month intervals (from 3.25% to 4.25% to 5.5%) and thus increasing the monthly installments, ranging from $95,000 per month for months 1-12, $115,000 per month for months 13 to 24, and $135,000 per month for months 25 to 59. A final balloon payment is due on the 60th month. The amount of the balloon payment is not set forth in the Plan. Upon each one- year anniversary date of the note, Friendship Dairies is obligated to pre-pay principal of the note if it has "excess cash flows" as such phrase is defined under the Plan. The smaller obligation, the $700,000 note, is likewise paid over 59 months; the interest rate on such note is 5% per annum, with payments of $5,848.05 per month. It, too, contains a balloon payment on the 60th month. Of significance is Frontier's settled-out deficiency claim of $11,041,479.91. Frontier's lien rights extended to essentially all of Friendship Dairies' personal property assets -- livestock, equipment, inventory, receivables, etc. -- but it allowed its financing statement to lapse immediately before Friendship Dairies commenced chapter 11 proceedings. (It also apparently holds a deed of trust lien against a few tracts of real property.) Friendship Dairies thus had negotiating leverage which was in part countered by the amount of Frontier's claim relative to other creditors and the aggregate value of the estate's assets. In return for treating Frontier's claim as secured to the extent of $16,700,000, Frontier agreed that its unsecured deficiency claim of over $11 million would not share in distributions to other unsecured creditors. Frontier's unsecured deficiency claim, for which no distributions are made, is designated as Class 13 under the Plan. The treatments of Gavilon and Dimmitt Flaking under the Plan are also based on agreements reached by such creditors and Friendship Dairies. Gavilon and Dimmitt Flaking filed proofs of claim reflecting that they held secured claims, Gavilon for $270,457.32 and Dimmitt Flaking for $514,240.80. The Plan provides that the security interests of both are, however, potentially avoidable as preferences under ? 547 of the Bankruptcy Code. By the agreements reached, the claims of both creditors are allowed as unsecured claims in the amounts stated, and the agreement further provides that "all payments made" to each by Friendship Dairies within the 90 days preceding the bankruptcy filing are deemed unavoidable. Whether the potentially avoidable liens are the same as the potentially avoidable payments is unclear. The secured claim in the amount of $358,650 of the Underwood Law Firm, the Class 11 creditor, will be paid in full over 120 months with interest at 3% per annum. The estimated monthly payment is $3,463.15. AgStar is the Class 12 creditor under the Plan; AgStar is the largest secured creditor in the case, as well. The Plan provides that the Court will determine the amount of AgStar's claim upon hearing on the Debtor's objection to AgStar's claim. AgStar's proof of claim reflects a principal balance, as of the petition date, of $16,408,373.40. AgStar has received payments during the pendency of this bankruptcy case of $1,071,323, which, Friendship Dairies contends, is properly credited against AgStar's principal balance. The Plan treats AgStar as oversecured and thus recognizes that it accrues interest and attorneys' fees from the petition date. AgStar's lien on the dairy facility, consisting of the real estate and improvements, is not disputed. The parties do dispute the extent to which AgStar is oversecured. Regardless, the Plan purports to pay AgStar the full amount of its allowed secured claim with monthly installment payments that are based upon a 20- year amortization, with a balloon payment due October 1, 2028, 15 years from the effective date of confirmation. The Plan provides that AgStar will be issued a new promissory note; the initial interest rate will be 5.0% per annum with adjustments to the rate made on September 1, 2015 and September 1, 2022, respectively. The adjusted rates will be based on a formula of 4% above the inflation indexed rate for 7-year Treasury securities. The Plan recognizes, however, as an alternative to the initial 5% rate, that the Court may ultimately determine an initial rate that accords with the Supreme Court's opinion in Till v. SCS Credit Corp., 541 U.S. 465 (2004), and the Fifth Circuit's opinion in Matter of Texas Grand Prairie Hotel Realty, LLC, 710 F.3d 324 (5th Cir. 2013). The Plan estimates that its proposed treatment results in monthly payments to AgStar that exceed $106,000. Finally, the Plan's treatment of AgStar contemplates that AgStar's post-petition interest rate will be the non-default rate of 6.3%, unless the Court determines otherwise, and that the so-called "prepayment fee" under the existing loan instruments is disallowed (assuming it applies). The Plan preserves a prepayment fee going forward, however. Class 14 addresses the claims of affiliated parties, which are the partners Jakob Van DerWeg, Patrick VanAdrichem, and his wife Linda VanAdrichem. The Plan proposes to pay such claims but not until all general unsecured creditors have been paid. General unsecured creditors, Class 15 under the Plan, are estimated to be in the total amount of $3,294,334.51 (including Gavilon's claim of $270,457.32 and Dimmitt Flaking's claim of $514,240.80). Unsecured creditors are given the option of being paid an immediate 30% dividend (30% of their allowed claim) by Frontier's purchase of the claim, or payment in full with interest at 3% per annum in monthly installments over 180 months. With respect to Frontier's purchase of claims under the purchase option, Frontier will share in distributions to other creditors that elect such option, but its purchased claims will be deemed satisfied upon the Debtor's payment of 60% of the purchased claim. The estimated monthly payments to unsecured creditors are $24,692.43. Classes 4 (Deaf Smith County Appraisal District), 7 (Lone Star Milk Producers), 11 (Underwood Law Firm), 14 (General Unsecured Claims of Affiliated Entities), 15 (General Unsecured Claims), 18 (Co-Obligor Claims), and 19 (Subrogation Claims), each of which is an impaired class, voted to accept the Plan. No votes were cast by impaired Classes 3, 6, 8, 9, 10, 13, and 16. AgStar, Class 12, cast its vote rejecting the Plan. During the pendency of this chapter 11 case, Friendship Dairies has implemented systems that would improve its operations over time. Friendship Dairies submits that it is in a better position to implement its reorganization. According to AgStar's expert, James Synatzske, the dairy facilities that make up AgStar's collateral -- the real estate (consisting of approximately 5,021.55 acres on four non-contiguous parcels of land, with two commercial dairy facilities on one of the sites) and improvements (including barn milking equipment, pivot sprinkler systems, and irrigation motors and gear heads) -- have a market value of $17.9 million and a liquidation value of $15.2 million. By the Plan, the Debtor treats AgStar as fully secured, at least to the extent of having collateral of a value that would cover AgStar's interest (at a non-default rate) and allowable attorneys' fees. Though AgStar's claim amount is subject to determination upon the Debtor's objection, AgStar's claim will fall within a range of $16 million to $18.5 million. Mr. Synatzske's appraisal skews the collateral value down by approximately $3 million because of "excess depreciation," a concept of his invention and one not used or commonly accepted in the appraisal industry. Regardless, given the continued accrual of interest and ongoing depreciation of the dairy facilities, the equity in AgStar's collateral, if any, is rapidly declining. GENERAL CABLE: S&P Revises Outlook to Negative & Affirms 'BB-' CCR ------------------------------------------------------------------ Standard & Poor's Ratings Services said it revised its outlook on Highland Heights, Ky.-based General Cable Corp to negative from stable. At the same time, S&P affirmed the ratings on General Cable, including the 'BB-' corporate credit rating. "The rating outlook is negative based on our view that liquidity may become constrained due to the company's use of its $1 billion ABL facility for longer-term purposes, including addressing upcoming maturities as well as potential shareholder rewards," said Standard & Poor's credit analyst Amanda Buckland. "We expect leverage to remain within our expectations for the aggressive financial risk profile, with debt to EBITDA between 4.5x and 5x, and FFO to debt below 15%." S&P could lower the ratings if General Cable does not file its restated financial statements in a timely manner, which could limit the company's ability to refinance debt in the capital markets. In addition, a downgrade could occur if the company adopts a more aggressive financial policy, including using its ABL to buy back shares. S&P could also lower ratings if it determines liquidity to be "less than adequate", which could occur if sources of liquidity decrease by about $160 million under its base case. S&P could revise the outlook to stable if it sees the company's liquidity profile begin to improve. This could occur if the company is able to restate its financial statements, thus allowing it to tap the financial markets to address its maturities. GENESIS PRESS: People's Capital Allowed $85,161 Admin. Claim ------------------------------------------------------------ Bankruptcy Judge Helen Ellizabeth Burris granted, in part, and denied, in part, the Application for Administrative Expenses filed by People's Capital and Leasing Corp. in the Chapter 7 case of Genesis Press, Inc. The Application requests allowance of a claim in the amount of $85,161.30 as an administrative expense pursuant to 11 U.S.C. Sec. 503(b)(1)(A) and Sec. 365(d)(3) and that the claim be afforded super priority status pursuant to Sections 507(a)(2) and 507(b). John K. Fort, the case trustee, and creditor 7112 August Road, LLC, objected to the Application. Genesis Press, Inc., a printing business, filed a Chapter 11 bankruptcy petition on March 6, 2013. For several months thereafter Genesis continued to operate the business as a debtor in possession pursuant to Sections 1107 and 1108. To continue operations, Genesis retained leased equipment described as a 2007 Mueller Martini Acoro Perfect Binding Line and accessories. Pursuant to the lease executed pre-petition by PCLC and Genesis, a monthly lease payment was due on the 11th of each month. Following Genesis' failure to make the first post-petition payment, PCLC filed a motion on April 5, 2013 for relief from the automatic stay or for adequate protection and a motion to compel assumption or rejection of the executory contract. At the April 30, 2013 hearing on those motions the parties announced the terms of a settlement on the record. At that time PCLC had received a check from Genesis for a post-petition payment due under the lease. The settlement order was to include a requirement that Genesis resume regular lease payments of $20,276.50 per month, cure the post petition arrearage in four installments of $5,069.13 and pay PCLC's legal fees of $7,500.00. The parties were directed to submit a proposed order memorializing the settlement and bearing the parties' consents for the Court's consideration. However, the order was never submitted or entered. The day after the hearing the check payment previously received by PCLC from Genesis was returned for insufficient funds. PCLC did not receive any further payments from Genesis thereafter. As a result, PCLC did not submit the settlement order to the Court for consideration and the settlement was not fully consummated. Instead, PCLC filed a second motion for relief from the automatic stay or for adequate protection and a motion to compel assumption or rejection of the executory contract. Before that hearing was held, Genesis converted from Chapter 11 to Chapter 7. After conversion, PCLC amended the motions for relief from the automatic stay as needed and the Trustee objected. At the July 11, 2013 hearing on the motions the Trustee withdrew his objection and the Court subsequently entered an order granting relief from the automatic stay. The parties agree that upon the withdrawal of the Trustee's objection at the July 11 hearing the lease was rejected. PCLC now seeks approval of an administrative expense claim for four post-petition lease payments. PCLC requests a total of $42,580.65 ($40,453.00 plus a five percent late charge) pursuant to Sec. 503(b)(1)(A) for the first 59 days of post-petition rent on the leased equipment and a total of $42,580.65 ($40,453.00 plus a five percent late fee) pursuant to Sec. 365(d)(5) for rent on the leased equipment starting on the 16th day from the petition date until the rejection of the lease. The total claim is $85,161.30. The objecting parties do not dispute PCLC's administrative claim in this amount. However, PCLC requests payment of the entire $85,161.30 claim on a super-priority basis pursuant to Sec. 507(b) within 30 days. The latter requests are in dispute. The parties also disagree regarding whether PCLC is entitled to immediate payment of the administrative expense as requested in the Application. Pursuant to the Court's ruling: 1. People's Capital is allowed an administrative claim pursuant to 11 U.S.C. Sec. 503(b) and Sec. 365(d)(5) in the amount of $85,161.30 to be paid as directed by the Trustee; and 2. People's Capital's request is denied, in part, as to the request for super-priority status of the administrative claim pursuant to 11 U.S.C. Sec. 507(b) and the request for payment of the claim within 30 days. The case is In re: Genesis Press, Inc., Chapter 7, Debtor(s).Case No. 13-01376-HB (Bankr. D. S.C.). A copy of the Bankruptcy Court's January 2, 2014 Order is available at http://is.gd/UkjJDn from Leagle.com. GO DADDY: S&P Revises Outlook to Positive & Affirms 'B' CCR ----------------------------------------------------------- Standard & Poor's Ratings Services said it revised its rating outlook on Scottsdale, Ariz.-headquartered Go Daddy Operating Co. LLC to positive from stable. S&P affirmed its 'B' corporate credit rating on the company. "The outlook revision reflects the potential for an upgrade over the coming 12 months if the company's organic revenue and subscriber base continue to grow, its operating performance remains strong, and its credit measures continue to improve," said credit analyst Elton Cerda. S&P's positive rating outlook reflects its view that Go Daddy should generate significant positive discretionary cash flow and gradually reduce its GAAP leverage 2014, barring a releveraging transaction. Upside scenario Any upgrade would likely entail an improvement in the EBITDA margin as a result of market share gains in businesses other than domain name registration, and further success in upselling and cross-selling activity while maintaining consistent positive discretionary cash flow. Additional elements of an upgrade scenario likely would be the ratio of discretionary cash flow to debt approaching the mid-teens area on a sustainable basis. Downside scenario S&P could revise its outlook to stable if Go Daddy encounters tougher price competition or if market share losses begin, possibly as a result of increased competition, causing discretionary cash flow to drop below $50 million and leverage to trend higher. HOLIDAY INN, HUNSTVILLE: Conducts Liquidation Sale -------------------------------------------------- WHNT19 News reports that the Holiday Inn in downtown Huntsville, Alabama, is holding a huge liquidation sale, which began Jan. 2. The sale will continue for the next 30 days or until all items are sold, according to WHNT19 News. The sale is being conducted by NCL/National Content Liquidators, Inc. Everything must go -- the hotel will be demolished afterwards for future property redevelopment, the report relates. The sale is open to both the public and the hospitality industry, the report adds. HRK HOLDINGS: Wants Plan Filing Deadline Extended to Jan. 27 ------------------------------------------------------------ HRK Holdings LLC and HRK Industries LLC ask the U.S. Bankruptcy Court for the Middle District of Florida to further extend the time to file a Chapter 11 plan and disclosure statement through and including Jan. 27, 2014. As reported by the Troubled Company Reporter on Dec. 2, 2013, Judge K. Rodney May entered an order extending until Dec. 27, 2013, the deadline for the Debtors to file a Chapter 11 plan and disclosure statement. The judge also extended through and including Feb. 28, 2014, the Debtors' exclusive period to solicit acceptances of their Chapter 11 plan. The Debtors submit that cause exists to grant the extension of the plan filing deadline by an additional 30 days. On Nov. 15, 2013, the Court entered its orders granting Debtors' motions for approval of the sale of three parcels of real property. According to Scott A. Stichter, Esq., at Stichter Riedel Blain & Prosser, P.A., the attorney for the Debtors, his clients have been working to close each of those sales. The Debtors entered into a consent order with the State of Florida Department of Environmental Protection which requires the Debtors to, among other things, prepare a water management plan and a plan for the long term care of the gypsum stacks. Any plan to be proposed by the Debtors would be impacted by costs of resolving issues with the gypsum stacks, as set forth in the plans being developed by the Debtors. The Debtors are requesting this extension to allow them the time necessary to close the anticipated sales to the successful bidders, to focus on developing plans required under the consent order and continue discussions with Regions. About HRK Holdings Based in Palmetto, Florida, HRK Holdings LLC owns roughly 675 contiguous acres of real property in Manatee County, Florida. Roughly 350 acres of the property accommodates a phosphogypsum stack system, called Gypstaks, a portion of which was used as an alternate disposal area for the management of dredge materials pursuant to a contract with Port Manatee and as authorized under an administrative agreement with the Florida Department of Environmental Protection. The remaining acres of usable land are either leased to various tenants or available for sale. HRK Industries holds various contracts and leases associated with the Debtors' property. HRK Holdings and HRK Industries LLC filed for Chapter 11 protection (Bankr. M.D. Fla. Case Nos. 12-09868 and 12-09869) on June 27, 2012. Judge K. Rodney May oversees the case. Barbara A. Hart, Esq., and Scott A. Stichter, Esq., at Stichter, Riedel, Blain & Prosser, P.A., represents the Debtors. HRK Holdings disclosed $33,366,529 in assets and $26,092,559 in liabilities in its revised schedules. According to the Debtors, the bankruptcy filing was necessitated by the immediate need to sell a portion of the remaining property to create liquidity for (a) funding the urgent management of the site-related environmental concerns; the benefit of creditors; funding a litigation filed by the Debtors; and funding of expenses related to additional sales of the remaining property. IDERA PHARMACEUTICALS: Longwood Capital Holds Less Than 1% Stake ---------------------------------------------------------------- In an amended Schedule 13G filed with the U.S. Securities and Exchange Commission, Longwood Capital Partners LLC disclosed that as of Oct. 31, 2013, it beneficially owned 545,385 common shares or 0.9 percent equity stake of Idera Pharmaceuticals Inc. Longwood Capital previously reported beneficial ownership of 3.79 million common shares or 8.4 percent equity stake as of May 29, 2013. A copy of the regulatory filing is available at: http://is.gd/cy3zGn About Idera Pharmaceuticals Cambridge, Massachusetts-based Idera Pharmaceuticals, Inc., is a clinical stage biotechnology company engaged in the discovery and development of novel synthetic DNA- and RNA-based drug candidates that are designed to modulate immune responses mediated through Toll-like Receptors, or TLRs. The Company has two drug candidates, IMO-3100, a TLR7 and TLR9 antagonist, and IMO-8400, a TLR7, TLR8, and TLR9 antagonist, in clinical development for the treatment of autoimmune and inflammatory diseases. In the auditors' report on the consolidated financial statements for the year ended Dec. 31, 2012, Ernst & Young LLP, in Boston, Mass., expressed substantial doubt about Idera's ability to continue as a going concern, citing recurring losses and negative cash flows from operations and the necessity to raise additional capital or alternative means of financial support, or both, prior to Dec. 31, 2013, in order to continue to fund its operations. The Company reported a net loss of $19.2 million on $51,000 of revenue in 2012, compared with a net loss of $23.8 million on $53,000 of revenue in 2011. Revenue in 2012 and 2011 consisted of reimbursement by licensees of costs associated with patent maintenance. The Company's balance sheet at Sept. 30, 2013, showed $39.57 million in total assets, $2.46 million in total liabilities, and stockholders' equity of $37.11 million. INSPIRATION BIOPHARMA: Liquidating Plan Declared Effective ---------------------------------------------------------- The effective date of Inspiration Biopharmaceuticals Inc.'s first amended liquidating plan of reorganization occurred on Dec. 23, 2013. As reported by the Troubled Company Reporter on Dec. 9, 2013, Bloomberg News bankruptcy columnist Bill Rochelle reported that the bankruptcy judge in Boston signed a confirmation order approving the Plan, after no creditors objected to the Plan's confirmation. The Debtor held $2.75 million after sale of the assets, more than enough to cover unsecured claims eventually estimated to total $2.2 million after excess claims are eliminated. The Debtor already distributed $50 million in asset- sale proceeds. Full payment may not come until mid-2014, according to the disclosure statement. In accordance with the Plan, Michael Nowlan has been appointed liquidating trustee of the liquidating trust and all rights of the Debtor in and to the assets have vested in, and have been received by, the Liquidating Trust. Applications for final compensation and reimbursement of professional fee claims incurred before the Effective Date must be filed with the Bankruptcy Court by Jan. 22, 2014. About Inspiration Biopharmaceuticals Inspiration Biopharmaceuticals Inc. develops recombinant blood coagulation factor products for the treatment of hemophilia. Inspiration, based in Cambridge, Massachusetts, has two products in what the company calls "advanced clinical development." Two other products are in "pre-clinical development." None of the products can be marketed as yet. Inspiration filed for voluntary Chapter 11 reorganization (Bankr. D. Mass. Case No. 12-18687) on Oct. 30, 2012, in Boston. Bankruptcy Judge William C. Hillman oversees the case. Mark Weinstein and Michael Nolan, at FTI Consulting, Inc., serve as the Debtor's Chief Restructuring Officers. Harold B. Murphy, Esq., and Andrew G. Lizotte, Esq., at Murphy & King, PC, in Boston, Massachusetts, represent the Debtor. The petition shows assets and debt both exceed $100 million. Assets include patents, trademarks and the products in development. Liabilities include $195 million owing to Ipsen Pharma SAS, which is also a 15.5% shareholder. Ipsen -- http://www.ipsen.com/-- is also owed $19.4 million in unsecured debt. There is another $12 million in unsecured claims. Ipsen is pledged to provide $18.3 million in financing. The Debtor disclosed $20,383,300 in assets and $241,049,859 in liabilities. Ipsen is represented in the case by J. Eric Ivester, Esq., at Skadden Arps. The Official Committee of Unsecured Creditors tapped Jeffrey D. Sternklar and Duane Morris LLP as its counsel, and The Hawthorne Consulting Group, LLC as its financial advisor. IRISH BANK: Sues Borrower Flynn to Enforce Automatic Stay --------------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that Irish Bank Resolution Corp.'s representatives sued in Delaware bankruptcy court to bar a borrower from pursuing his lawsuit against the company in a New York federal court. According to the report, although IBRC got protection from a U.S. bankruptcy judge on Dec. 18, the borrower, John Flynn, sued its foreign representatives two days later in U.S. District Court in Manhattan, alleging IBRC's predecessor banks committed fraud. IBRC was formed to complete the liquidation of Ireland's Anglo Irish Bank Corp. and Irish Nationwide Building Society. To halt lawsuits pending in the U.S., it filed a petition under Chapter 15 of the U.S. Bankruptcy Code in August. A month later U.S. Bankruptcy Judge Christopher Sontchi in Wilmington temporarily halted lawsuits in the U.S. and last month granted recognition to the Irish bankruptcy proceedings, permanently barring creditor actions in the U.S. Flynn had a lawsuit on file against IBRC and a predecessor bank when the Chapter 15 case began. Judge Sontchi halted the suit in December, saying he would file an opinion later explaining why he dismissed Flynn's objections to the Chapter 15 petition. Flynn's new lawsuit doesn't name IBRC as a defendant. Instead, it accuses IBRC's foreign representatives of committing bankruptcy fraud. The IBRC representatives asked Judge Sontchi to convene a hearing on Jan. 6 and to issue an injunction halting Flynn's new lawsuit as a violation of the bankruptcy code's automatic stay on such litigation. Flynn's lawyer Leonard Zack didn't return a call seeking comment on the request for an injunction. Flynn is also appealing Judge Sontchi's ruling that IBRC is entitled to Chapter 15 protection to the district court. Flynn opposed Chapter 15 protection, contending that IBRC was created under a special-purpose Irish law and didn't qualify. IBRC's principal asset as of June 2012 was a loan portfolio valued at some 25 billion euros ($34 billion). Total liabilities as of June 2012 were about 50 billion euros, according to a court filing. About Irish Bank Resolution Irish Bank Resolution Corp., the liquidation vehicle for what was once one of Ireland's largest banks, filed a Chapter 15 petition (Bankr. D. Del. Case No. 13-12159) on Aug. 26, 2013, to protect U.S. assets of the former Anglo Irish Bank Corp. from being seized by creditors. Irish Bank Resolution sought assistance from the U.S. court in liquidating Anglo Irish Bank Corp. and Irish Nationwide Building Society. The two banks failed and were merged into IBRC in July 2011. IBRC is tasked with winding them down and liquidating their assets. In February, when Irish lawmakers adopted the Irish Bank Resolution Corp., IBRC was placed into a special liquidation in the Irish High Court to complete liquidation and distribution of the two banks' assets. IBRC's principal asset as of June 2012 was a loan portfolio valued at some EUR25 billion (US$33.5 billion). About 70 percent of the loans were to Irish borrowers. Some 5 percent of the portfolio was under U.S. law, according to a court filing. Total liabilities in June 2012 were about EUR50 billion, according to a court filing. Most assets in the U.S. have been sold already. IBRC is involved in lawsuits in the U.S. The IBRC liquidators want the U.S. bankruptcy judge to rule that Ireland is home to the so-called foreign main bankruptcy proceeding. If the judge agrees and determines that IBRC otherwise qualifies, creditor actions in the U.S. will halt automatically. ISC8 INC: Squar Milner Raises Going Doubt Concern ------------------------------------------------- ISC8 Inc. filed with the U.S. Securities and Exchange Commission on Dec. 24, 2013, its annual report on Form 10-K for the fiscal year ended Sept. 30, 2013. Squar, Milner, Peterson, Miranda & Williamson, LLP expressed substantial doubt about the Company's ability to continue as a going concern, citing that the Company has negative working capital of $29.7 million and a stockholders' deficit of $55.5 million. The Company reported a net loss of $28.02 million on $501,000 of revenues in fiscal year ended Sept. 30, 2013, compared with a net loss of $19.7 million in fiscal year ended Sept 30, 2012. The Company's balance sheet at Sept. 30, 2013 showed $4.96 million in total assets, $60.52 million in total liabilities, and stockholders' deficit of $55.55 million. A copy of the Form 10-K is available at: http://is.gd/PiUHyT About ISC8 Inc. Costa Mesa, California-based ISC8 Inc. is engaged in the design, development, manufacture and sale of a family of security products, consisting of cyber security solutions for commercial and U.S. government applications, secure memory products, some of which utilize technologies that the Company has pioneered for three-dimensional ("3-D") stacking of semiconductors, systems in a package ("Systems in a Package" or "SIP"), and anti-tamper systems. Squar, Milner, Peterson, Miranda & Williamson, LLP, in Newport Beach, California, expressed substantial doubt about ISC8 Inc.'s ability to continue as a going concern. The independent auditors noted that as of Sept. 30, 2012. the Company has negative working capital of $10.1 million and a stockholders' deficit of $35.4 million. The Company reported a net loss of $19.7 million on $4.2 million of revenues in fiscal 2012, compared with a net loss of $15.8 million on $5.2 million of revenues in fiscal 2011. The Company's balance sheet at March 31, 2013, showed $4.71 million in total assets, $47.74 million in total liabilities and a $43.02 million total stockholders' deficit. LAFAYETTE YARDS: Welcome Completes Acquisition of Hotel ------------------------------------------------------- Welcome Hotel Group, LLC, a subsidiary of Edison Broadcasting, on Jan. 6 completed the acquisition of the 197-room Lafayette Yard Hotel & Conference Center in Trenton, N.J. from Lafayette Yards Community Development Corporation. The company paid $6 million for the bankrupt hotel as the winning bidder at a public auction. "To make sure that we match the best brand for downtown Trenton's only upscale hotel, we are reviewing all of our options with the major first-class hotel franchise brands," said Mike Marshall, president and CEO of Marshall Hotels & Resorts, operators of the hotel. "The hotel has great bones and fundamentally is in very good shape. However, it will need investment to conform to the standards of the future brand. The hotel will remain open during the selection and renovation, which we expect to take three to six months. Fortunately, we don't anticipate the renovation activity to be undisruptive to our guests. "New ownership brings new energy and investment, which will have a positive impact on this property," Mr. Marshall noted. "Now that the bankruptcy is in the past and ownership is settled, potential brands and guests will have greater confidence in the long-term viability of the Lafayette Yard. Because the hotel is privately held, we can be more entrepreneurial and creative in our marketing and operations." Mr. Marshall said that his management company is undertaking a thorough analysis of the hotel. "Our focus the past several months has been on stabilizing the hotel until the ownership issue could be worked out," he noted. "We are starting with no pre- conceived ideas, but because we have operated the property since May, we do have a good understanding of its inner-workings. Working with new ownership, we are going back to square one to look for every opportunity to enhance the property and the guest experience. We don't anticipate any wholesale changes, but we want to make sure that we look at every option." Located at 1 W. Lafayette St. in downtown Trenton, the Lafayette Yard Hotel & Conference Center is near the U.S. Federal Court, New Jersey state government offices and both the New Jersey State Supreme Court and the Mercer County Court. The hotel is well situated for leisure travelers with its proximity to Princeton and Bucks County, Pa., and such nearby tourist attractions as Arm & Hammer Park (home of the Trenton Thunder), the Sun National Bank Center, Six Flags Great Adventure and Sesame Place. With 11,000 square feet of meeting space, the hotel caters to both business meetings and social functions. About Marshall Hotels & Resorts, Inc. Salisbury, Md.-based Marshall Hotels & Resorts, Inc. -- http://www.marshallhotels.com-- has special expertise in operating three- and four-star branded hotels and resorts, averaging 100 to 500 rooms, in urban and central business districts, as well as suburban/drive-to and resort locations. In addition, the company has a proven track record managing independent resort and unique urban properties. The company has managed a wide array of leading hotel brands, including those under the Hilton, Marriott, Starwood, InterContinental Hotel Group, Hyatt, Carlson, Choice, Best Western and Wyndham flags. About Lafayette Yard Lafayette Yard Community Development Corporation, owner of the Lafayette Yard Hotel & Conference Center, previously called the Trenton Marriott, sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D.N.J. Case No. 13-30752) on Sept. 23, 2013. The Debtor is represented by Gregory G. Johnson, Esq., at Wong Fleming, Attorneys At Law, in Princeton, New Jersey; and Robert L. Rattet, Esq., Dawn Kirby, Esq., and Julie Cvek Curley, Esq., at Delbello Donnellan Weingarten Wise & Wiederkehr, LLP, in White Plains, New York. LANDMARK MEDICAL: Completes Sale to Calif.-Based Prime Healthcare ----------------------------------------------------------------- The Associated Press reports that the sale of financially troubled Landmark Medical Center in Woonsocket, Rhode Island, to a for- profit California-based hospital system is complete. Prime Healthcare Services finalized its purchase of Landmark on Dec. 31, according to the Associated Press. The report notes that the Woonsocket hospital has been in receivership since 2008, and previous deals have fallen through. Prime also acquired the Rehabilitation Hospital of Rhode Island. Landmark Chief Executive Officer Rick Charest said Prime's clinical and operational expertise and financial investment will help the medical center provide the highest quality health care, the report relates. Mr. Charest tells The Associated Press there are no specific plans for cutbacks and says the hospital will work to be an "absolutely efficient operation." Prime Chief Executive Officer Prem Reddy said his company looks forward to working with Landmark employees and that Prime takes seriously its motto of "saving hospitals, saving jobs and saving lives," the report adds. LEVEL 3: $200-Mil. Notes Converted to 10.8-Mil. Common Shares ------------------------------------------------------------- Through Dec. 24, 2013, the holders of Level 3 Communications, Inc.'s 6.5 percent Convertible Senior Notes due 2016 converted approximately $200,335,000 aggregate principal amount into 10,814,264 shares of Level 3 common stock, par value $.01 per share, pursuant to the terms of the Third Supplemental Indenture, dated as of Sept. 20, 2010, among Level 3 Communications, Inc., as Issuer, and The Bank of New York Mellon, as Trustee, governing the Notes. No accrued and unpaid interest was payable upon conversion of the Notes. On Dec. 26, 2013, the remaining $915,000 aggregate principal amount of the Notes was redeemed at a price equal to 100 percent of the principal amount plus accrued but unpaid interest up to but excluding Dec. 26, 2013. 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. For the nine months ended Sept. 30, 2013, the Company reported a net loss of $123 million on $4.71 billion of revenue as compared with a net loss of $366 million on $4.76 million of revenue for the same period a year ago. 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 2013, Fitch Ratings affirmed the 'B' Issuer Default Ratings (IDRs) assigned to Level 3. 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. LIGHTSQUARED INC: MAST, et al. Oppose Lenders' Proposed Plan ------------------------------------------------------------ U.S. Bank N.A. and MAST Capital Management, LLC are blocking efforts by LightSquared's secured lenders to win court approval of their proposed bankruptcy plan for the wireless communications company. Attorney for U.S. Bank and MAST Capital said the plan cannot be confirmed because it contains "broad release" provisions, which favor affiliates of the lenders group including Charles Ergen's Dish Network Corp. and SP Special Opportunities, LLC. Philip Dublin, Esq., at Akin Gump Strauss Hauer & Feld LLP, in New York, said the plan proposes to release the lenders and affiliates from claims that could have been asserted by LightSquared without requiring them to make a "substantial contribution" to the company's estate or its creditors. "As the [lenders] have not provided any consideration, much less a substantial contribution, in exchange for the release, the release must therefore be denied," the lawyer said. The lenders' proposed plan is based largely on a $2.2 billion offer from a subsidiary of Dish. Dish was sued by the wireless communications company after SP Special, a fund also owned by Mr. Ergen, illegally purchased more than $1 billion in LightSquared debt before Dish bid on its assets. The debt purchases were designed so an Ergen company could acquire LightSquared's valuable spectrum licenses. Melody, et al. Oppose Lenders' Plan The lenders' proposed plan also drew flak from SIG Holdings Inc., FCDB LSQ LLC, Centaurus Capital LP and Melody Business Finance LLC, which has recently agreed to provide financing to LightSquared's new bankruptcy plan. The companies aren't convinced the lenders' plan was proposed in good faith. They believe SP Special was instructed by its affiliates, which are competitors of the wireless communications company, to acquire the LightSquared debt and was used to propose a plan that would ensure a sale of the spectrum to Dish's subsidiary. Another group, which calls itself the Ad Hoc Preferred LP Group, also opposed the lenders' plan. The group filed an objection to ensure it would be paid first before any junior stakeholders receive property. The Ad Hoc Preferred LP Group is represented by: Kenneth S. Ziman, Esq. George N. Panagakis, Esq. Shana A. Elberg, Esq. Skadden, Arps, Slate, Meagher & Flom LLP Four Times Square New York, New York 10036 Tel: (212) 735-3000 Email: Centaurus and Melody are represented by: Jeffrey S. Sabin, Esq. Bingham McCutchen LLP 399 Park Avenue New York, New York 10022 Tele: (212) 705-7000 Fax: (212) 506-1800 Email: -- and -- Julia Frost-Davies, Esq. Bingham McCutchen LLP One Federal Street Boston, MA 02110 Tel: (617)-951-8000 Fax: (617)-951-8736 Email: FCDB LSQ LLC is represented by: Kristopher M. Hansen, Esq. Frank A. Merola, Esq. Jayme T. Goldstein, Esq. 180 Maiden Lane New York, New York 10038-4982 Tel: (212) 806-5400 Fax: (212) 806-6006 Email: SIG Holdings is represented by: Sandy Qusba, Esq. Elisha D. Graff, Esq. Nicholas E. Baker, Esq. Simpson Thacher & Bartlett LLP 425 Lexington Avenue New York, New York 10017 Tel: (212) 455-2000 Fax: (212) 455-2502 Email: U.S. Bank N.A. and MAST is represented by: Michael S. Stamer, Esq. Philip C. Dublin, Esq. Meredith A. Lahaie, Esq. Akin Gump Strauss Hauer & Feld LLP One Bryant Park New York, New York 10036 Tel: (212) 872-1000 Fax: (212) 872-1002 Email: mstamer@akingump.com pdublin@akingump.com 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. LOEHMANN'S HOLDINGS: Creditor Panel Seeks to Retain Cash -------------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that the Loehmann's Inc. creditors' committee scheduled a hearing for Jan. 7 to unravel cash-control procedures established by the court before the panel was formed. According to the report, unless the court changes the way sale proceeds are distributed to secured creditors, the liquidating discount retailer won't have cash to pay expenses of the bankruptcy, according to the committee's filing last week. Meanwhile, the U.S. Trustee, the Justice Department's bankruptcy watchdog, is opposing approval of $653,250 in bonuses for two top executives. Four days after the Dec. 15 Chapter 11 filing, the U.S. Bankruptcy Court in Manhattan let Loehmann's use cash representing collateral for secured lenders' claims. The court required the company to hand over sale proceeds to the lenders when the money is received. The Jan. 7 hearing is to approve the sale of inventory to liquidators, who will pay at least $19 million and conduct going-out-of-business sales. The final hearing to approve the use of cash isn't scheduled until Jan. 16, after sale proceeds already will have been distributed to first- and second-lien lenders, according to the committee. The creditors said second-lien lenders include controlling shareholders. The committee prevailed on the bankruptcy judge to hold a hearing on Jan. 7 to modify the prior order by allowing Loehmann's to retain cash after the sale. Without cash, the retailer won't have funds to pay Chapter 11 expenses or even let the committee conduct an investigation. At the Jan. 7 hearing, the U.S. Trustee will argue that the executive payment program violates congressional prohibitions on retention bonuses. There can't be any incentive justifying the bonuses, according to the U.S. Trustee, because they are in substance already fixed by the sale process. The bankruptcy watchdog said the minimum bonus of $132,950 is already earned because the $19 million "stalking- horse" bid meets the lowest threshold for payment. Bronx, New York-based Loehmann's said that before the bankruptcy executives were "working the equivalent of three jobs" by running the business while negotiating with liquidators to conduct going- out-of-business sales. The bonus program provides a $132,950 payment if first-lien debt is paid in full. The eligible executives are Chief Operating Officer William Thayer and Mindy Novack, the general counsel. If second-lien creditors are paid in full, the collective bonus is $402,500. If unsecured creditors receive a 10 percent distribution, the bonuses top out at $653,250. About Loehmann's Discount retailer Loehmann's Holdings Inc., and two affiliates sought Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 13-14050) on Dec. 15, 2013. This is Loehmann's third bankruptcy filing, but this time it will be a liquidation with going-out-of-business sales. The first bankruptcy was a 14-month Chapter 11 reorganization completed in September 2000. At the time the chain had 44 stores in 17 states. The second bankruptcy culminated in a reorganization plan implemented in March 2011. It was acquired by Istithmar in July 2006 in a $300 million transaction. Loehmann's, based in the Bronx borough of New York City, operated 39 stores in 11 states as of the 2013 bankruptcy filing. In the new Chapter 11 case, Loehmann's disclosed assets and debt both totaling $96.7 million. The debt includes $4.3 million on a first-lien credit agreement with Wells Fargo Bank NA as agent, not including about $9 million in letters of credit. Kristopher M. Hansen, Esq., at Stroock & Stroock & Lavan LLP, serves as counsel to the Debtors; Canaccord Genuity Inc. is the investment banker; Clear Thinking Group LLC is the restructuring advisor; and Epiq Bankruptcy Solutions LLC is the claims and notice agent. LOMBARDS FINE FURNITURE: Liquidation Sale Set Jan. 8 to 12 ---------------------------------------------------------- Tim Feran at The Columbus Dispatch in Columbus, Ohio, reports that the bankruptcy liquidation sale for Lombards Fine Furniture will take place Jan. 8 to 12 at the store's showroom location, 2060 Crown Plaza Dr., off Bethel Road on the Northwest Side. Lombards Fine Furniture filed Chapter 7 bankruptcy on Sept. 30 after 64 years in business. The furniture company owed creditors more than $1 million and listed assets of about $616,000, according to the filing, according to The Columbus Dispatch. Founded in 1949 on Lane Avenue by Dennis Lombard, who hired future owner Fred Heer in 1970, Lombards had built a reputation for offering high-end brands. The report notes that the auction will be held from noon to 8 p.m. each day. Daily discounts on all furniture inventory, equipment and fixtures begin with 40 percent off on Wednesday, Jan. 8 and progress daily by 10 percent until reaching 80 percent off on Sunday, Jan 12, the report relates. An online auction at http://www.AuctionOhio.netwill sell all remaining inventory. LONE PINE: Creditors Approve Restructuring Plan Under CCAA ---------------------------------------------------------- Lone Pine Resources Inc. disclosed that affected creditors of the Company and its subsidiaries have approved, by the required majorities at meetings held on Jan. 6, Lone Pine's previously- announced plan of compromise and arrangement under the Companies' Creditors Arrangement Act. The Plan was approved at the respective creditors' meeting of each company by over 95% of the number of affected creditors who voted on the Plan holding, in each case, more than 99% of the proven claims of all voting creditors of that company. Lone Pine intends to seek an order from the Court of Queen's Bench of Alberta sanctioning and approving the Plan under the CCAA at a hearing scheduled to commence on Thursday, January 9, 2014. If the CCAA sanction order is granted, the Company intends to proceed with a hearing before the United States Bankruptcy Court for the District of Delaware for recognition of the sanction order under Chapter 15 of the U.S. Bankruptcy Code, which is scheduled for Thursday, January 16, 2014. Implementation of the Plan is subject to receipt of the CCAA sanction order and Chapter 15 recognition order, and to satisfaction or waiver of the various other conditions precedent set forth in the Plan. Assuming satisfaction or waiver of these conditions within the expected time frames, the Company currently anticipates implementing the Plan and completing its restructuring on or before Friday, January 31, 2014. About Lone Pine Resources Calgary, Canada-based Lone Pine Resources Inc. is an independent oil and gas exploration, development and production company with operations in Canada. The Company's reserves, producing properties and exploration prospects are located in the provinces of Alberta, British Columbia and Quebec, and in the Northwest Territories. The Company is incorporated under the laws of the State of Delaware. Lone Pine entered bankruptcy protection in Canada on Sept. 25, 2013, under the Companies' Creditors Arrangement Act and received an initial protection order from an Alberta court the same day. Lone Pine Resources simultaneously filed for Chapter 15 protection in Delaware in the United States (Bankr. D. Del. Case No. 13- 12487) to seek recognition of the CCAA proceedings. Lone Pine, LPR Canada and all other subsidiaries of the Company are parties to the CCAA and Chapter 15 proceedings. Lone Pine is being advised by RBC Capital Markets, Bennett Jones LLP, Vinson & Elkins LLP and Richards Layton & Finger P.A. in connection with the restructuring, with Wachtell, Lipton, Rosen & Katz LLP providing independent advice to the Company's board of directors. The Supporting Noteholders are being advised by Goodmans LLP and Stroock & Stroock & Lavan LLP. MARTIN BELZ: Peabody Hotel President Files in Chapter 11 -------------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that Martin S. Belz, president and chairman of Peabody Hotel Group, filed a petition for Chapter 11 protection on Dec. 27 in Memphis, Tennessee, his hometown. According to the report, Peabody is a division of Belz Enterprises Inc., the owner of more than 25 million square feet of developed real property, according to a company website. The Peabody Hotel in Memphis is known for its ducks, which parade to and from a lobby fountain each day. Although Belz has yet to file details, the petition shows assets of less than $50 million and debt below $100 million. Liabilities included $72.6 million owed to five banks. The largest claim is $45.3 million owing to Metro Financial Services Corp. of Memphis. Belz listed the debt as contingent and disputed. The case is In re Martin S. Belz, 13-33888, U.S. Bankruptcy Court, Western District of Tennessee (Memphis). MAYBERRY SPORTING GOODS: To Close at The End of The Month --------------------------------------------------------- The Bellingham Herald reports that the number of locally owned sporting goods stores continues to shrink in Whatcom County in Washington. Mayberry Sporting Goods is closing its doors on Thursday, Jan. 30. The store at 703 W. Holly St., near the Pacific Marine Exchange and Gallery, will begin a liquidation sale on Friday, Jan. 3, said owner Emily Mallahan, according to The Bellinghan Herald. According to the report, Ms. Mallahan decided to close it before debts started piling up. One factor for the closure is the difficult economic climate, particularly for locally owned businesses, she said. This comes on the heels of the announced closure of Sportsman Chalet, which began its liquidation sale last month and is in its final days. Mayberry Sporting Goods opened in February 2011 at 1827 Cornwall Ave., near Bellingham High School. The company moved into a smaller space on Holly Street in May 2013. At the 11,000-square- foot Cornwall Avenue space, the business also had an old-fashioned fountain shop, offering milkshakes and sandwiches, and was home to a barbershop. MCMAHON PROPERTIES: Voluntary Chapter 11 Case Summary ----------------------------------------------------- Debtor: McMahon Properties, LLC 4644 E. Fort Lowell RD. Tucson, AZ 85712-1111 Case No.: 14-00092 Chapter 11 Petition Date: January 3, 2014 Court: United States Bankruptcy Court District of Arizona (Tucson) Judge: Hon. Brenda Moody Whinery Debtor's Counsel: Scott D. Gibson, Esq. LAW OFFICE OF SCOTT D. GIBSON, PLLC 6303 E Tanque Verde Road, Suite 210 Tucson, AZ 85715 Tel: 520-784-2600 Fax: 520-323-4613 Email: ECF@SDGLAW.NET Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Robert B. McMahon, manager. The Debtor did not file a list of its largest unsecured creditors when it filed the petition. MIDTOWN SCOUTS: Wants Plan Filing Deadline Moved to March 14 ------------------------------------------------------------ Midtown Scouts Square Property, LP and Midtown Scouts Square, LLC are seeking a further extension of their exclusive plan filing period through March 14, 2014, and their exclusive plan solicitation period through April 14, 2014. The Debtors' current plan filing deadline is Jan. 13, 2014, and their exclusive period to confirm a plan expires on March 14, 2014. The Debtors reason that an Estimation Motion involving the claim of Richey Family Limited Partnership, L.E. Richey, Todd Richey, and Bank of Houston must be resolved first before they can file and confirm a plan. The Debtors maintain the claims alleged by the Richeys in the litigation are potentially substantial and allowance of the same could significantly impact any plan they may file, including whether the Richeys have an equity interest in the Debtors. Because the Court may not enter a ruling on the Estimation Motion and related Claim Objection prior to the expiration of the exclusivity period, and the Debtors will require at least several weeks to evaluate the financial impact of Court's ruling on the Estimation Motion, the Debtors will not be able to file a meaningful Chapter 11 Plan prior to the expiration of the current exclusivity period, says T. Josh Judd, Esq., of Hoover Slovacek LLP, in Houston, Texas, as counsel to the Debtors. About Midtown Scouts Square Midtown Scouts Square Property, LP, and affiliate Midtown Scouts Square, LLC, own two commercial properties located in Midtown Houston, Texas. The first property is a mixed use 36,000-square- foot two-storey office/restaurant building originally constructed in 1975, while the second property is a 104,000-square foot eight-storey parking garage with ground floor retail space, both in Bagby Street, in Houston. The two entities sought Chapter 11 protection (Bankr. S.D. Tex. Lead Case No. 13-32920) on May 9, 2013. The petitions were signed by Erich Mundinger as president of general partner. Judge Karen K. Brown presides over the case. In its schedules, MSS Property disclosed $17,408,328 in assets and $16,666,325 in liabilities. Edward L. Rothberg, Esq. at Hoover Slovacek, LLP, serves as the Debtor's counsel. Hawash Meade Gaston Neese & Cicack, LLP, serves as special litigation counsel. MRM PROJECT: Case Summary & 10 Unsecured Creditors -------------------------------------------------- Debtor: MRM Project Management, LLC 3 Broadway Beverly, MA 01915 Case No.: 14-10012 Chapter 11 Petition Date: January 3, 2014 Court: United States Bankruptcy Court District of Massachusetts (Boston) Judge: Hon. Joan N. Feeney Debtor's Counsel: Michael S. Kalis, Esq. MICHAEL S. KALIS, ESQUIRE 632 High Street Dedham, MA 02026 Tel: (781) 461-0030 Fax: (781) 461-4563 Email: mikalislaw@verizon.net Estimated Assets: $500,000 to $1 million Estimated Liabilities: $1 million to $10 million The petition was signed by Michael Hubbard, manager. A list of the Debtor's 10 largest unsecured creditors is available for free at http://bankrupt.com/misc/mab14-10012.pdf NEW LIFE INT'L: Files for Chapter 11 in Nashville to Liquidate -------------------------------------------------------------- New Life International, a religious corporation originally incorporated under the name "World Bible Society", sought Chapter 11 bankruptcy protection (Bankr. M.D. Tenn. Case No. 13-10974) in Nashville, Tennessee, on Dec. 31, 2013. Explaining the filing, the company stated on its Web site, "The filing is due, in part, to challenging economic events that have occurred in the last several years which have caused a decline in the value of NLI's asset base. These include the general U.S. economic recession in 2008 and factors specific to NLI's operations such as increased costs and regulatory changes. The decline in asset base has left NLI unable to continue its mission and meet its long-term obligations to holders of charitable gift annuities and charitable bargain sales, sometimes referred to as ChIPs. Because of these circumstances, a formal filing of Chapter 11, while not desirable, is the best solution for all the constituencies that NLI serves." NLI said that in mid-December 2013 its board met and considered a forecast that NLI will run out of cash in the next calendar year unless additional cash is generated through the liquidation of assets, reduction of expenses and/or other means. The Debtor estimated $10 million to $50 million in assets and liabilities. Other names used by the Debtor are the National Community Foundation, The New Life Group, and Band Angels. First Day Motions The Debtor immediately filed applications to employ Gullett Sanford Robinson & Martin, PLLC as bankruptcy attorneys; and Kraft CPAs Turnaround & Restructuring Group PLLC, as financial consultant. The Debtor also filed motions to keep its existing bank accounts, pay prepetition wages to eight employees, and provide adequate assurance to utilities. Moreover, the Debtor is seeking an extension of the deadline to file its schedules of assets and liabilities and its statement of financial affairs until Jan. 30, 2014. The case is assigned to Judge Randal S. Mashburn. Liquidating Plan NLI stated on its Web site -- http://www.newlifeint.org/-- that the bar date notice will likely be issued and mailed to creditors and interested parties by Feb. 28, 2014. The bar date notice will contain the deadline for creditors to file proofs of claim in the case. NLI added that its intention is to file with the Court no later than April 30, 2014, its Chapter 11 plan of liquidation and an explanatory disclosure statement. NEW LIFE INT'L: Proposes Gullett Sanford as Bankruptcy Counsel -------------------------------------------------------------- New Life International seeks approval from the bankruptcy court to employ the law firm of Gullett, Sanford, Robinson & Martin, PLLC of Nashville, Tennessee, as bankruptcy counsel. The Debtor has chosen Gullett Sanford for the reason that it is experienced and well qualified to perform the work required of it in the case. Customary hourly rates of attorneys with Gullett Sanford, as may be adjusted from time to time, including during the pendency of the case, are: Hourly Rates ------------ Members $275 to $475 Associates $150 to $300 Paralegals $90 to $125 Prior to the filing of the Chapter 11 petition, the Debtor paid GSR&M $225,619, of which $173,000 have been disbursed as compensation for prepetition services. The Debtor believes GSR&M is a disinterested person as that term is defined in 11 U.S.C. Sec. 101(14). Responses are due Jan. 21, 2014. If a response is timely filed, a hearing will be held Feb. 4, 2014, at 9:00 a.m. About New Life International New Life International, a religious corporation originally incorporated under the name "World Bible Society", sought Chapter 11 bankruptcy protection (Bankr. M.D. Tenn. Case No. 13-bk-10974) in Nashville, Tennessee, on Dec. 31, 2013. The Debtor estimated $10 million to $50 million in assets and liabilities. NLI's sources of revenue include donations of goods, money and other property, investment earnings, sale of Christian-themed merchandise and earnings from other real estate and operating entities. Other names used by the Debtor are the National Community Foundation, The New Life Group, and Band Angels. The Debtor has tapped Gullett Sanford Robinson & Martin, PLLC as attorneys and Kraft CPAs Turnaround & Restructuring Group, PLLC, as financial consultant. NEW LIFE INT'L: Hiring Kraft CPAs as Consultant ----------------------------------------------- New Life International seeks approval from the bankruptcy court to employ Kraft CPAs Turnaround & Restructuring Group PLLC of Nashville, Tennessee, as financial consultant. The firm will assist the Debtor in financial matters while NLI operates in bankruptcy. KTRG will charge the Debtor at these hourly rates, which, subject to Court approval, may be adjusted from time to time, including during the pendency of the case: Hourly Rates ------------ Principals/Members $350 to $420 Staff $65 to $275 KTRG will track and account for time in 1/10th hour increments. In addition to the fees for consulting services, the Debtor will reimburse KTRG for all direct costs that it incurs on the Debtor's behalf. Examples include photocopies, document archiving, delivery and courier services, and travel expenditures. The Debtor has paid the firm $218,631, of which $118,631 has been disbursed as compensation for financial and consulting services rendered prior to the Petition Date. The Debtor believes the firm is a disinterested person as that term is defined in 11 U.S.C. Sec. 101(14). Responses are due Jan. 21, 2014. If a response is timely filed, a hearing will be held Feb. 4, 2014, at 9:00 a.m. The firm can be reached at: Myles A. MacDonald Principal and Member KRAFTCPAS TURNAROUND & RESTRUCTURING GROUP PLLC 555 Great Circle Road, Suite 200 Nashville, TN 37228 Tel: (615) 943-3145 Fax: (615) 782-4271 E-mail: mmacdonald@kraftcpas.com About New Life International New Life International, a religious corporation originally incorporated under the name "World Bible Society", sought Chapter 11 bankruptcy protection (Bankr. M.D. Tenn. Case No. 13-bk-10974) in Nashville, Tennessee, on Dec. 31, 2013. The Debtor estimated $10 million to $50 million in assets and liabilities. NLI's sources of revenue include donations of goods, money and other property, investment earnings, sale of Christian-themed merchandise and earnings from other real estate and operating entities. Other names used by the Debtor are the National Community Foundation, The New Life Group, and Band Angels. The Debtor has tapped Gullett Sanford Robinson & Martin, PLLC as attorneys and Kraft CPAs Turnaround & Restructuring Group, PLLC, as financial consultant. NEW LIFE INT'L: Files List of 20 Largest Unsecured Creditors ------------------------------------------------------------ New Life International filed with the U.S. Bankruptcy Court for the Middle District of Tennessee a list of creditors holding 20 largest unsecured claims: Entity Nature of Claim Claim Amount ------ --------------- ------------ Abbotts, Robert T. Annuitant - CGA $374,251 718 Ashmeade Rd. Charlotte, NC 28211-4242 Barnett, Charlotte Annuitant - CGA 428,223 9253 White Cliff Way Indianapolis, IN 46234 Dillon, Helene Annuitant - CGA 850,202 c/o Western Nat'l Trust Co. PO Box 40430 Reno, NV 89504 Gorman, Vivian E. Annuitant - ChiP 537,968 672 W. Hollis St. Nashua, NH 03062 Hall, Carolyn H. Annuitant - ChiP 482,463 2412 Churchill Drive Wilmington, NC 28403 Heihl, Karen Annuitant - CGA 966,088 12827 Minx Rd. La Salle, MI 48145 Hyneman, Michael Annuitant - CGA 371,664 308 Patriots Landing Coatesville, IN 46121 Lentz, Ruth R. Annuitant - CGA 409,993 2524 Richmar Dr. Dayton, OH 45434 Mack, Robert Annuitant - CGA 368,414 185 N. Airport Way Manteca, CA 95337 Malone, Michael K. Annuitant - CGA 361,205 64 Trinity St. Newton, NJ 07865 McCabe, Richard A. Annuitant - ChiP 488,551 8271 S. Continental Divide Rd. #304 Littleton, CO 80127 Nation, Florence Annuitant - ChiP 684,878 345 Genoa Red Bluff Houston, TX 77034 Rice, James D. Annuitant - CGA 585,139 744 Willowhead Naples, FL 34103 Rice, Sharon Annuitant - CGA 585,139 744 Willowhead Naples, FL 34103 Speer, Sandra Annuitant - CGA 440,236 18 Santa Cruz Rd. Tuckerton, NJ 08057 Stetzer, Grace M. Annuitant - ChiP 448,815 8629 LaLosa Dr. West Jacksonville, FL 32217 Stetzer, Mark Annuitant - ChiP 448,815 8629 LaLosa Dr. West Jacksonville, FL 32217 Stolarz, Dorothy P. Annuitant -CGA/ChiP 1,504,968 59 Maple Ridge Dr. Somers, CT 06071 Taylor, Richard M. Annuitant - CGA 821,905 501 Haverhill Lane Colleyville, TX 76034 Waits, Sybil Turner Annuitant - CGA 343,250 565 Mountain Way NE Atlanta, GA 30342 About New Life International New Life International, a religious corporation originally incorporated under the name "World Bible Society", sought Chapter 11 bankruptcy protection (Bankr. M.D. Tenn. Case No. 13-bk-10974) in Nashville, Tennessee, on Dec. 31, 2013. The Debtor estimated $10 million to $50 million in assets and liabilities. NLI's sources of revenue include donations of goods, money and other property, investment earnings, sale of Christian-themed merchandise and earnings from other real estate and operating entities. Other names used by the Debtor are the National Community Foundation, The New Life Group, and Band Angels. The Debtor has tapped Gullett Sanford Robinson & Martin, PLLC as attorneys and Kraft CPAs Turnaround & Restructuring Group, PLLC, as financial consultant. NNN 123: May Use Wells Fargo's Cash Collateral Until Jan. 31 ------------------------------------------------------------ NNN 123 North Wacker, LLC, sought and obtained authorization from the U.S. Bankruptcy Court for the Northern District of Illinois to use cash collateral until Jan. 31, 2014, to pay expenses of that certain improved real property located at 123 North Wacker Drive in Chicago. A copy of the budget is available for free at: http://bankrupt.com/misc/NNN123cashcollorderbudget.pdf The party with an interest in the cash collateral is Wells Fargo Bank, N.A., as Trustee, for the registered holders of GE Commercial Mortgage Corporation, Commercial Mortgage Pass- Through Certificates, Series 2005-C4 acting by and through C-III Asset Management LLC, a Delaware limited liability company, as successor to Midland Loan Services Inc., in its capacity as special servicer for the 123 North Wacker Whole Loan pursuant to that certain Pooling and Servicing Agreement dated Dec. 1, 2005 As adequate protection for the use of cash collateral, the Lender will receive a $520,701 adequate protection payment to be applied to the indebtedness owed pursuant to the loan documents. The $669,981.52 of remaining amounts needed to fund the required tenant improvements costs and leasing commissions associated with the with the lease of office space to FPL Corporate Services, LLC, will be placed by the Lender in an escrow account with Zodiac Title Services LLC. A further hearing on the cash collateral use will be held on Jan. 27, 2014. NNN 123 North Wacker, LLC, filed a Chapter 11 petition (Bankr. N.D. Ill. Case No. 13-39210) on Oct. 4, 2013 in Chicago, represented by Andrea Johnson Frost, Esq., at Kaye Scholer LLC, as counsel. The Debtor disclosed total assets of $24.95 million and total liabilities of $135.47 million in its Schedules. Another entity, NNN 123 North Wacker Member LLC, sought Chapter 11 protection (Case No. 13-39240) on the same day. NORTH TEXAS: Court OKs Sale of Park Cities to Olney Bancshares -------------------------------------------------------------- The U.S. Bankruptcy Court in Delaware has approved the acquisition of Park Cities Bank (NTBS/PCB), by Olney Bancshares of Texas, Inc. The sale is the culmination of a three-year work out process during which Commerce Street Capital, LLC (CSC), a Dallas-based investment banking firm, served as strategic advisor to Park Cities Bank and its parent, North Texas Bancshares, Inc (NTBC/PCB). This announcement was made on Jan. 6 by Dory Wiley, President and CEO of CSC. As part of the transaction, Park Cities Bank will merge with and into Interbank, the wholly owned banking subsidiary of Olney Bancshares of Texas, Inc. Interbank operates 36 banking locations in Texas and Oklahoma while Park Cities Bank operates four branches in the Dallas/Fort Worth area. The sale and merger resulted from an auction process conducted in accordance with procedures approved by the U. S. Bankruptcy Court in the District of Delaware as part of the bankruptcy filings by North Texas Bancshares, Inc. and North Texas Bancshares of Delaware, Inc. under Chapter 11 of the Bankruptcy Code. A tentative agreement for the sale was approved by the bankruptcy court on December 17, 2013. During the court-supervised auction, Olney Bancshares of Texas, Inc's $11.4 million bid was deemed the highest or otherwise best offer received, beating a stalking horse bid by Park Cities Financial Group, an independent group of investors unaffiliated with NTBS/PCB. CSC Vice President Hatch Smith was the lead financial advisor to NTBS/PCB. Mr. Smith and CSC's team worked closely with NTBS/PCB's leadership, regulators and numerous third parties during the three-year process. CSC's Smith noted, "We appreciate the persistence and vision of the NTBS/PCB leaders who worked diligently with the CSC team during an arduous and lengthy process that drew on the full resources of CSC, including our expansive investor network and ability to conceive multiple creative strategies in order to reach an optimal outcome from a challenging situation." CSC was first engaged by NTBS/PCB in November 2010 to assist the bank holding company with strategic alternatives, including exploration of the potential sale of distressed and non-performing assets, recapitalization, sale and/or reorganization through bankruptcy. After several strategic initiatives and consideration by numerous investors, the decision was made to reorganize and conduct an auction for NTBS/PCB under Chapter 11 protection, Section 363 of the Federal Bankruptcy Code. CSC's Financial Institutions Group practice centers exclusively on serving the needs of the financial services sector. The group aims to provide sound, comprehensive advice, expert structuring and optimum execution to banks, bank holding companies and allied businesses. CSC is recognized as a leader in the industry for its valuation practice and providing clients with unbiased analyses and independent opinions required to fulfill their fiduciary obligations. 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. About Commerce Street Capital Commerce Street Capital, LLC -- http://www.commercestreetcapital.com-- is a private investment banking firm headquartered in Dallas, Texas. Led by veterans of the banking industry, CSC specializes in investment banking services (mergers and acquisitions, valuations and regulatory issue advising) and bank development (on-site consulting, sales and management of bank capital raises, market assessments and the bank regulatory application process). The firm provides tailored solutions for all or part of a financial institution's business lifecycle. OCZ TECHNOLOGY: Has Final Nod to Pay Critical Vendors Claim ----------------------------------------------------------- The Hon. Peter J. Walsh of the U.S. Bankruptcy Court for the District of Delaware entered a final order authorizing OCZ Technology Group, Inc., et al., to pay the claims asserted by certain critical vendors and service providers. As reported by the Troubled Company Reporter on Dec. 10, 2013the Court gave interim authority for the Debtors to pay the claims asserted by critical vendors. Payments on account of critical vendor claims must not exceed $4.02 million without further court order. The Debtors will undertake appropriate efforts to cause the critical vendors to enter into trade agreements with the Debtors as a condition to payment of its critical vendor claims. The Debtors are authorized, in its sole discretion, to make payment on account of critical vendor claims in the absence of a trade agreement after the Debtors have undertaken appropriate efforts to cause the critical vendor to execute a trade agreement and if the Debtors determine, in their sole discretion, that failure to pay the critical vendor claim presents a material risk of irreparable harm to the Debtors' business. About OCZ San Jose, Calif.-based OCZ Technology Group, Inc. (Nasdaq: OCZ) designs, manufactures, and distributes high-performance solid- state storage solutions and premium computer components. OCZ and two affiliates on Dec. 2, 2013, filed for Chapter 11 protection (Bankr. D. Del. Lead Case No. 13-13126) with a deal to sell all assets under 11 U.S.C. Sec. 363 to Toshiba Corporation for $35 million. As of the bankruptcy filing, the Debtors had funded indebtedness of $29.3 million and general unsecured trade obligations of $31.4 million. Young Conaway Stargatt & Taylor represents the Debtors as counsel. Mayer Brown LLP serves as the Debtors' special counsel. Deutsche Bank is the Debtors' investment banker. The Hon. Peter J. Walsh presides over the case. OCZ TECHNOLOGY: Court Okays Hiring of GCG Inc as Claims Agent ------------------------------------------------------------- OCZ Technology Group, Inc. and its debtor-affiliates sought and obtained permission from the Hon. Peter J. Walsh of the U.S. Bankruptcy Court for the District of Delaware to employ GCG, Inc. as claims and noticing agent. The Debtors require GCG Inc to: (a) prepare and serve required notices and documents in these Chapter 11 Cases in accordance with the Bankruptcy Code and the Bankruptcy Rules in the form and manner directed by the Debtors and the Court, including (i) notice of the commencement of the cases and the initial meeting of creditors under section 341(a) of the Bankruptcy Code, (ii) notice of any claims bar date, (iii) notices of transfers of claims, (iv) notices of objections to claims and objections to transfers of claims, (v) notices of any hearings on a sale of the Debtors' assets or a disclosure statement and confirmation of the Debtors' plan or plans of reorganization, including under Bankruptcy Rule 3017(d), (vi) notice of the effective date of any plan, and (vii) all other notices, orders, pleadings, publications, and other documents as the Debtors or Court may deem necessary or appropriate fo an orderly administration of the cases; (b) maintain an official copy of the Debtors' schedules of assets and liabilities and statement of financial affairs, listing the Debtors' known creditors and the amounts owed thereto; (c) maintain (i) a list of all potential creditors, equity holders, and other parties-in-interest and (ii) a "core" mailing list consisting of all parties described in Bankruptcy Rules 2002 (i), (j), and (k) and those parties that have filed a notice of appearance pursuant to Bankruptcy Rule 9010; update said lists, and make said lists available upon request by a party-in-interest or the Clerk's Office; (d) furnish a notice to all potential creditors of the last date for the filing of proofs of claim and a form for the filing of a proof of claim, after such notice and form are approved by the Court, and notify said potential creditors of the existence, amount, and classification of their respective claims as set forth in the Schedules, which may be affected by inclusion of such information on a customized proof of claim form provided by potential creditors; (e) maintain a post office box or address for the purpose of receiving claims and returned mail, and process all mail received; (f) for all notices, motions, orders, or other pleadings or documents served, prepare and file or caused to be filed with the Clerk's Office an affidavit or certificate of service within 7 business days of service, which includes (i) either a copy of the notice served or the docket numbers and titles of the pleadings served, (ii) a list of persons to whom it was mailed with their addresses, (ii) the manner of service, and (iv) the date served; (g) process all proofs of claim received, including those received by the Clerk's Office, and check said processing for accuracy, and maintain the original proofs of claim in a secure area; (h) maintain the official claim register for each Debtor on the behalf of the Clerk's Office; upon request of the Clerk's Office, provide the Clerk's Office with certified, duplicate unofficial Claims Registers; and specify in the Claims Registers the following information for each claim docketed: (i) the claim number assigned, (ii) the date received, (iii) the name and address of the claimant and agent, if applicable, who filed the claim, (iv) the amount asserted, (v) the asserted classifications of the claim, (vi) the applicable Debtor, and (vii) any disposition of the claim; (i) implement necessary security measures to ensure the completeness and integrity of the Claims Registers adn the safekeeping of the original claims; (j) record all transfers of claims and provide any notices of such transfers as required by Bankruptcy Rule 3001 (e); if an evidence of transfer of a claim is filed with the Court pursuant to Bankruptcy Rule 3001(e), and if the evidence of transfer or notice thereof executed by the parties purports to waive the 21-day notice and objection period required under Bankruptcy Rule 3001 (e), then the Claims Agent may process the transfer of claim to change the name and address of the claimant of such claim to reflect the transfer, and the effective date of such transfer will be date the evidence of such transfer with docketed in the case; (k) relocate, by messenger or overnight deliver, all of the court-filed proofs of claim to the offices of the Claims Agent, not less than weekly; (l) upon completion of the docketing process for all claims received to date for each case, turn over the Clerk's Office copies of the claims register for review by the Clerk's Office; (m) monitor the Court's docket for all notices of appearance, address changes, and claims-related pleadings and orders filed, and make necessary notations on and changes to the claims register; (n) assist in the dissemination of information to the public and respond to requests for the administrative information regarding the cases as directed by the Debtors or the Court, including through the use of a case website and call center; (o) if the cases are converted to Chapter 7, contact the Clerk's Office within 3 days of the notice to the Claims Agent of entry of the order converting the cases; (p) 30 days prior to the close of these cases, to the extent practicable, request that the Debtors submit to the Court a proposed order dismissing the Claims Agent and terminating the services of such agent upon completion of its duties and responsibilities and upon the closing of these cases; (q) within 7 days of notice to the Claims Agent of entry of an order closing these Chapter 11 cases, provide to the Court the final version of the claims register as of the date immediately before the closing of the cases; and (r) at the close of these cases, box and transport all original documents, in proper format, as provided by the Clerk's Office, to (i) the Federal Archives Record Administration, located at Central Plains Region, 200 Space Center Drive, Lee's Summit, MO 64064 or (ii) any other location requested by the Clerk's Office. GCG personnel will be paid at these discounted hourly rates: Administrative, Mailroom and Claims Control $45-$55 Project Administrators $70-$85 Project Supervisors $95-$110 Graphic Support & Technology Staff $100-$200 Project Managers & Senior Project Managers $125-$175 Directors and Asst. Vice Presidents $200-$295 Vice Presidents and above $295 For this engagement, GCG Inc agrees to provide discounted hourly rates as reflected in the chart and to cap its highest hourly rate at $295. Expert services provided by Angela Ferrante and Craig Johnson, the latter in connection with solicitation and tabulation will be at a rate of $310 per hour. GCG Inc will also be reimbursed for reasonable out-of-pocket expenses incurred. Angela Ferrante, vice president of GCG Inc's Bankruptcy Operations, 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. GCG Inc can be reached at: Angela Ferrante GCG, INC. 1985 Marcus Ave Lake Success, NY 11042 Tel: (631) 470-5000 E-mail: angela.ferrante@gcginc.com About OCZ San Jose, Calif.-based OCZ Technology Group, Inc. (Nasdaq: OCZ) designs, manufactures, and distributes high-performance solid- state storage solutions and premium computer components. OCZ and two affiliates on Dec. 2, 2013, filed for Chapter 11 protection (Bankr. D. Del. Lead Case No. 13-13126) with a deal to sell all assets under 11 U.S.C. Sec. 363 to Toshiba Corporation for $35 million. As of the bankruptcy filing, the Debtors had funded indebtedness of $29.3 million and general unsecured trade obligations of $31.4 million. The Debtors are represented by Mayer Brown LLP's Sean T. Scott, Esq., as counsel and Young Conaway Stargatt & Taylor LLP's Michael R. Nestor, Esq., Matthew B. Lunn, Esq., and Jaime Luton Chapman, Esq., as Delaware local counsel. Deutsche Bank is the Debtors' investment banker. Mike Rizzo Jr. at RAS Management Advisors, LLC, serves as financial advisors to the Debtors. The Hon. Peter J. Walsh presides over the case. Kelley Drye & Warren LLP's Eric R. Wilson, Esq., Jason R. Adams, Esq., and Gilbert R. Saydah Jr., Esq., serve as counsel to the official committee of unsecured creditors, and Greenberg Traurig, LLP's Dennis A. Meloro, Esq. serves as local counsel. OCZ TECHNOLOGY: Hires GCG Inc as Administrative Advisor ------------------------------------------------------- OCZ Technology Group, Inc. and its debtor-affiliates seek authorization from the Hon. Peter J. Walsh U.S. Bankruptcy Court for the District of Delaware to employ GCG, Inc. as administrative advisor, nunc pro tunc to Dec. 2, 2013 petition date. The Debtors require GCG Inc to: (a) assist with, among other things, solicitation, balloting, and tabulation and calculation of votes, as well as preparing any appropriate reports, as required in furtherance of confirmation of plans of reorganization; (b) generate an official ballot certification and testifying, if necessary in support of the ballot tabulation results; (c) gather data in conjunction with the preparation, and assist with the preparation, of the Debtors' schedules of assets and liabilities and statements of financial affairs; (d) generate, provide, and assist with claims objections, exhibits, claims reconciliation, and related matters; (e) provide a confidential data room; (f) manage any distributions pursuant to a confirmed plan of reorganization; and (g) provide such other claims processing, noticing, solicitation, balloting, and administrative services described in the Bankruptcy Administration Agreement, but not included in the Section 156(c) Application, as may be requested from time to time by the Debtors. GCG Inc will be paid at these discounted hourly rates: Administrative, Mailroom and Claims Control $45-$55 Project Administrators $70-$85 Project Supervisors $95-$110 Graphic Support & Technology Staff $100-$200 Project Managers & Senior Project Managers $125-$175 Directors and Asst. Vice Presidents $200-$295 Vice Presidents and above $295 For this engagement, GCG Inc agrees to provide discounted hourly rates as reflected in the chart and to cap its highest hourly rate at $295. Expert services provided by Angela Ferrante and Craig Johnson, the latter in connection with solicitation and tabulation will be at a rate of $310 per hour. GCG Inc will also be reimbursed for reasonable out-of-pocket expenses incurred. Angela Ferrante, vice president of GCG Inc's Bankruptcy Operations, 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. GCG Inc can be reached at: Angela Ferrante GCG, INC. 1985 Marcus Ave Lake Success, NY 11042 Tel: (631) 470-5000 E-mail: angela.ferrante@gcginc.com About OCZ San Jose, Calif.-based OCZ Technology Group, Inc. (Nasdaq: OCZ) designs, manufactures, and distributes high-performance solid- state storage solutions and premium computer components. OCZ and two affiliates on Dec. 2, 2013, filed for Chapter 11 protection (Bankr. D. Del. Lead Case No. 13-13126) with a deal to sell all assets under 11 U.S.C. Sec. 363 to Toshiba Corporation for $35 million. As of the bankruptcy filing, the Debtors had funded indebtedness of $29.3 million and general unsecured trade obligations of $31.4 million. The Debtors are represented by Mayer Brown LLP's Sean T. Scott, Esq., as counsel and Young Conaway Stargatt & Taylor LLP's Michael R. Nestor, Esq., Matthew B. Lunn, Esq., and Jaime Luton Chapman, Esq., as Delaware local counsel. Deutsche Bank is the Debtors' investment banker. Mike Rizzo Jr. at RAS Management Advisors, LLC, serves as financial advisors to the Debtors. The Hon. Peter J. Walsh presides over the case. Kelley Drye & Warren LLP's Eric R. Wilson, Esq., Jason R. Adams, Esq., and Gilbert R. Saydah Jr., Esq., serve as counsel to the official committee of unsecured creditors, and Greenberg Traurig, LLP's Dennis A. Meloro, Esq. serves as local counsel. OCZ TECHNOLOGY: 3-Member Panel Named as Unsec. Creditors Committee ------------------------------------------------------------------ The U.S. Trustee for Region 3, pursuant to Section 1102(a)(1) of the Bankruptcy Code, appointed three members to the Official Committee of Unsecured Creditors in the bankruptcy cases of OCZ Technology, Inc., et al. The Committee members are: 1. RR Donnelley Attn: Dav Pevonka 4101 Winfield Rd. Warrenville, IL 60555 Phone: 630-322-6931 Fax: 630-322-6034 2. Advanced MP Technology, Inc. Attn: Ronald Harris 1010 Calle Sombra San Clemente, CA 92672 Phone: 949-492-3113 Fax: 949-388-4020 3. Avnet Asia Pte. Ltd. Attn: Dennis Losik 151 Lorong Chuan #06-03 New Tech Park Singapore 556741 Phone: 847-396-7401 Fax: 847-396-7474 David L. Buchbinder, Esq., represents the U.S. Trustee. About OCZ San Jose, Calif.-based OCZ Technology Group, Inc. (Nasdaq: OCZ) designs, manufactures, and distributes high-performance solid- state storage solutions and premium computer components. OCZ and two affiliates on Dec. 2, 2013, filed for Chapter 11 protection (Bankr. D. Del. Lead Case No. 13-13126) with a deal to sell all assets under 11 U.S.C. Sec. 363 to Toshiba Corporation for $35 million. As of the bankruptcy filing, the Debtors had funded indebtedness of $29.3 million and general unsecured trade obligations of $31.4 million. Young Conaway Stargatt & Taylor represents the Debtors as counsel. Mayer Brown LLP serves as the Debtors' special counsel. Deutsche Bank is the Debtors' investment banker. The Hon. Peter J. Walsh presides over the case. ORMET CORP: Laid-Off Steelworkers to Conduct Picket on January 8 ---------------------------------------------------------------- The United Steelworkers (USW)on Jan. 6 said that a busload of laid-off workers from Ormet's aluminum smelter in Hannibal, Ohio will conduct an informational picket on Wednesday, January 8, 2014, outside American Electric Power (AEP) headquarters in Columbus. Ormet plunged into bankruptcy in February 2013 after AEP raised its electric rate from $38 per megawatt hour in 2009 to $62.80 in 2013. The average rate for aluminum producers in North America is currently $30. The USW has delivered thousands of petition signatures to Gov. John Kasich and the Public Utilities Commission of Ohio (PUCO) urging them to intervene so that the bankrupt aluminum producer can resume operations. The USW represents 850,000 men and women employed in metals, mining, pulp and paper, rubber, chemicals, glass, auto supply and the energy-producing industries, along with a growing number of workers in public sector and service occupations. ATTN ASSIGNMENT/EDITORS: Photo Opportunities, Interviews WHO: Steelworkers fighting to save jobs at Ormet WHAT: Informational picket at AEP corporate headquarters WHEN: 10 a.m. - 3 p.m. on Wed., Jan. 8, 2014 WHERE: American Electric Power - 1 Riverside Plaza, Columbus, OH 43215 More information, contact: Donnie Blatt - 740-504-8900 (cell) or dblatt@usw.org About Ormet Corp. Aluminum producer Ormet Corporation, along with affiliates, filed for Chapter 11 protection (Bankr. D. Del. Case No. 13-10334) on Feb. 25, 2013, with a deal to sell the business to a portfolio company owned by private investment funds managed by Wayzata Investment Partners LLC. Headquartered in Wheeling, West Virginia, Ormet -- http://www.ormet.com/-- is a fully integrated aluminum manufacturer, providing primary metal, extrusion and thixotropic billet, foil and flat rolled sheet and other products. Ormet disclosed assets of $406.8 million and liabilities totaling $416 million. Secured debt of about $180 million includes $139.5 million on a secured term loan and $39.3 million on a revolving credit. Affiliates that separately filed Chapter 11 petitions are Ormet Primary Aluminum Corporation; Ormet Aluminum Mill Products Corporation; Specialty Blanks Holding Corporation; and Ormet Railroad Corporation. Ormet emerged from a prior bankruptcy in April 2005. Lender Wayzata Investment Partners LLC is among existing owners. Others are UBS Willow Fund LLC and Fidelity Leverage Company Stock Fund. In the 2013 case, Ormet is represented in the case by Morris, Nichols, Arsht & Tunnell LLP's Erin R. Fay, Esq., Robert J. Dehney, Esq., Daniel B. Butz, Esq.; and Dinsmore & Shohl LLP's Kim Martin Lewis, Esq., Patrick D. Burns, Esq. Kurtzman Carson Consultants is the claims and notice agent. Evercore's Lloyd Sprung and Paul Billyard serve as investment bankers to the Debtor. An official committee of unsecured creditors was appointed in the case in March 2013. The Committee is represented by Rafael X. Zahralddin, Esq., Shelley A. Kinsella, Esq., and Jonathan M. Stemerman, Esq., at Elliott Greenleaf; and Sharon Levine, Esq., S. Jason Teele, Esq., and Cassandra M. Porter, Esq., at Lowenstein Sandler LLP. PAULSON CAPITAL: Intends to Appeal NASDAQ Determination Letter -------------------------------------------------------------- Paulson Capital Corp. on Jan. 6 disclosed that it is expected that, effective on January 8, 2014, the Company's common stock will resume trading on The NASDAQ Stock Market under the Company's symbol ("PLCC"). The Company also announced that, on December 30, 2013, the Company received a letter from the NASDAQ Listing Qualifications Staff stating that the Company's common stock is subject to delisting based on non-compliance with NASDAQ Listing Rule 5250(e)(6), which the Staff has indicated required the Company to notify NASDAQ 10 calendar days in advance of the October 11, 2013 record date established for participation in distributions from an irrevocable liquidating trust to be formed by the Company, as more fully discussed below. The Company previously disclosed the Staff's views with respect to the Record Date notice requirement in a Current Report on Form 8-K filed with the Securities and Exchange Commission on November 27, 2013. As was noted in that filing, on September 27, 2013, the Company issued a press release announcing the Record Date along with information relating to the formation of the Trust. The Staff determination letter also raises "public interest" concerns, pursuant to the discretionary authority granted to NASDAQ under Listing Rules 5100 and 5101 and IM-5101-1, which the Staff believes further support delisting. In particular, the Staff raised concerns based on certain Company disclosures that the Company may divest itself of its interest in its sole operating subsidiary and that therefore investors do not know what the Company's business will be in the future. As a result, the Staff concluded that the Company may be characterized as a "public shell." The Staff also expressed its belief that there had been a lack of clear disclosure about the current nature of the Company's business and the Company's business plans going forward. In addition, the Staff concluded that market confusion resulted following the Record Date from the Company's failure to provide NASDAQ with timely notice of the Record Date pursuant to Listing Rule 5250(e)(6). The Company intends to request an appeal of the Staff's determination before an independent NASDAQ Listing Qualifications Panel. The timely filing of an appeal with the Panel will result in a stay of any suspension or delisting action pending the issuance of the Panel's decision following the hearing. However, there can be no assurance that the Panel will grant the Company's request for continued listing following the hearing. As previously announced, the assets that will ultimately be contributed to the Trust consist of non-operational assets held by Paulson Investment Company, Inc., the Company's broker-dealer subsidiary on the Record Date, such as cash, receivables, income taxes receivable, trading and investment securities, underwriter warrants, and an insurance policy on the life of the founder of the Company (Chester Paulson) (or proceeds from the sale of such policy). As of September 30, 2013, these assets totaled approximately $11.9 million. While these assets have been designated to be set aside for inclusion in the Trust, liquidation by a trustee, and distribution in the future to the stockholders on the Record Date, they do not constitute all of the assets of PIC. As of September 30, 2013, cash, receivables, investment securities, underwriter warrants, prepaid expenses, and furniture and equipment, all related to the on-going operations of the broker-dealer, totaling approximately $3.4 million, were allocated to PIC. PIC will continue as an operating entity and, in fact, the Company has expanded PIC's operations since the Record Date. As described in the Proxy Statement that was provided to the Company's shareholders in connection with the 2013 Annual Meeting held on November 8, 2013, the Company expects to create the Trust and transfer to it selected non-operating PIC assets, as described above and as described more fully in the Company's Quarterly Report on Form 10-Q for the period ended September 30, 2013. The Company has a 100% voting interest and 84% beneficial interest in PIC and will continue to operate PIC following the creation of the Trust. As is discussed more fully in the Third Quarter Form 10-Q, PIC grew in size and operations in 2013 with offices in New York City, San Francisco, and Portland, and acted as placement agent for six companies during the year. As referenced above, the assets to be transferred to the Trust are non-operating and mostly financial assets from historical activities that are not required for the conduct of PIC's broker-dealer operations. As previously announced, shareholders who acquired their shares of the Company's Common Stock after the Record Date have no right to participate in the Trust or to the payment by the trustee of any proceeds from the Trust but continue to own an indirect interest in the operations and activity of PIC through their ownership of the Company's Common Stock. It is expected that the Trust will be formed in 2014, with the Trust assets ultimately to be distributed to owners of the Company's common stock as of the Record Date within the next three years. The Company previously disclosed in the Proxy Statement, its Forms 10-Q for the quarterly periods ended June 30, 2013 and September 30, 2013 filed with the SEC on August 19, 2013 and November 14, 2013, respectively, and its Current Report on Form 8-K/A filed with the SEC on August 30, 2013, that the Board of Directors was contemplating a restructuring of the ownership of the broker- dealer business in the future, which could initially reduce the Company's ownership in PIC to as low as 25 percent. The Company wished to update the status of such activities and announced that this is but one of a number of options that are being explored in an effort to enhance shareholder value. As noted above, the Company currently has a 100% voting interest and 84% beneficial interest in PIC and therefore does not believe that it is appropriate to characterize the Company as a "public shell." While it remains possible that the Company will take actions in the future that could result in a reduction in its ownership in PIC, the Company has no current plans to divest itself of PIC, particularly if such divestiture would result in the Company no longer owning an operating business. Notwithstanding, the Company is actively considering alternative business initiatives including mergers with and investments in private or public companies. Finally, on December 16, 2013, Mr. Chester Paulson resigned from the Board, and the remaining directors appointed Dr. Denis Burger to fill Mr. Paulson's vacancy. Dr. Burger's appointment gives the Board a majority of independent directors and his appointment to the Audit Committee gives the committee three independent members, bringing the Company back into compliance with NASDAQ Listing Rules 5605(b)(1) and 5605(c)(2). The Company previously had received a letter from the Staff stating that the Company was not in compliance with NASDAQ Listing Rules 5605(b)(1) (which requires that the Company have a majority of independent directors) and 5605(c)(2) (which requires that the Company have an audit committee with at least three members, each of whom is independent) and has now regained compliance with such Rules. Mr. Trent Davis, CEO, stated, "We are pleased to have Dr. Burger return to the Company's Board, of which he was a member from 2008 to 2010." From 1991-2011, he was managing director of Sovereign Ventures, LLC, a biotech investing and consulting firm. He was a director of BioCurex, Inc., a developer of a universal cancer marker, from 2010 to 2013; chairman and chief executive officer of AVI BioPharma, Inc., a drug development company using gene targeted therapeutics, from 1997 to 2007; and founding chairman of Epitope, Inc., a developer of diagnostic products, from 1981 to 1990. Dr. Burger is currently a director of Trinity Biotech PLC, a diagnostic products developer, and Lorus Therapeutics, a cancer therapeutics company. Earlier in his career, he was a Professor of Microbiology and Immunology, an Associate Professor of Surgery and the Director of the Histocompatibility Testing Laboratory at Oregon Health Sciences University. He holds a B.A. degree in Bacteriology and Immunology from the University of California at Berkeley, and an M.S. and Ph.D. in Microbiology and Immunology from the University of Arizona, Tucson. About Paulson Capital Corp. Paulson Capital Corp. -- http://www.paulsoninvestment.com-- is the parent company of Paulson Investment Company, Inc. Headquartered in Portland, OR, Paulson Investment Company, Inc. (member FINRA/SIPC) has been a national leader in public offerings of small and emerging growth companies with capital needs of $5 million to $45 million. Founded by Chester "Chet" Paulson in 1970, it has managed or underwritten over 150 securities offerings and has generated more than $1.2 billion for client companies. PRIME GLOBAL: B F Borgers Raises Going Doubt Concern ---------------------------------------------------- Prime Global Capital Group Incorporated filed with the U.S. Securities and Exchange Commission on Dec. 24, 2013, its annual report on Form 10-K for the fiscal year ended Oct. 31, 2013. B F Borgers CPA PC expressed substantial doubt about the Company's ability to continue as a going concern, citing that the Company suffered from significant operating loss and working capital deficit of $1,887,783. The continuation of the Company as a going concern through October 31, 2014, is dependent upon improving the profitability and the continuing financial support from its stockholders. Management believes the existing shareholders will provide the additional cash to meet the Company's obligations as they become due. The Company reported a net loss of $2.09 million on $1.95 million of net revenues in fiscal year ended Oct. 31, 2013, compared with a net income of $1.47 million on $3.05 million of net revenues in fiscal year ended Oct. 31, 2012. The Company's balance sheet at Oct. 31, 2013, showed $61.74 million in total assets, $25.52 million in total liabilities, and stockholders' equity of $36.22 million. A copy of the Form 10-K is available at: http://is.gd/OELEe9 Kuala Lumpur, Malaysia-based Prime Global Capital Group Incorporated operates in the following four business segments: (i) the provision of IT consulting, programming and website development services; (ii) its oilseeds business; (iii) its real estate business and (iv) the distribution of consumer products. The Company's software, oilseeds and real estate businesses accounted for all of the Company's revenues for the six months ended April 30, 2013. The Company did not generate any revenues from the distribution of consumer products during such period. RURAL/METRO CORP: Implements Plan Making Noteholders Owners ----------------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that Rural/Metro Corp. on Dec. 31 implemented a bankruptcy plan that was approved when the bankruptcy judge in Delaware signed a confirmation order on Dec. 17, enabling unsecured noteholders to become controlling stockholders. According to the report, the provider of medical transportation mostly worked out the plan before the Chapter 11 filing in August. Confirmation became easy after a settlement brought the creditors' committee into agreement with the plan. Unsecured noteholders owed $312.2 million took all the new preferred stock and 70 percent of the common stock in return for a $135 million equity contribution through a rights offering. About Rural/Metro Corp Headquartered in Scottsdale, Arizona, Rural/Metro Corporation -- http://www.ruralmetro.com-- is a national provider of 911- emergency and non-emergency interfacility ambulance services and private fire protection services, operating in 21 states and nearly 700 communities. Rural/Metro was acquired in 2011 in a leveraged buyout by Warburg Pincus LLC as part of a transaction valued at $676.5 million. Rural/Metro Corp. and 59 affiliates sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 13-11952) on Aug. 4, 2013, before the U.S. Bankruptcy Court for the District of Delaware. Debt includes $318.5 million on a secured term loan and $109 million on a revolving credit with Credit Suisse AG serving as agent. There is $312.2 million owing on two issues of 10.125 percent senior unsecured notes. The Debtors' lead bankruptcy counsel are Matthew A. Feldman, Esq., Rachel C. Strickland, Esq., and Daniel Forman, Esq., at Willkie Farr & Gallagher LLP, in New York. Maris J. Kandestin, Esq., and Edmon L. Morton, Esq., at Young, Conaway, Stargatt & Taylor, LLP, in Wilmington, Delaware, serve as the Debtors' local Delaware counsel. Alvarez & Marsal Healthcare Industry Group, LLC, and FTI Consulting, Inc., are the Debtors' financial advisors, while Lazard Freres & Co. L.L.C. is their investment banker. Donlin, Recano & Company, Inc., is the Debtors' claims and noticing agent. The U.S. Trustee has appointed a three-member official committee of unsecured creditors in the Chapter 11 case. The Debtors have arranged $75 million of DIP financing from a group of prepetition lenders led by Credit Suisse AG. An interim order has allowed the Debtors to access $40 million of the DIP facility. The Debtors have filed a reorganization plan largely worked out before the Chapter 11 filing in early August. Existing shareholders receive nothing in the plan. The Company's debt includes $318.5 million on a secured term loan and $109 million on a revolving credit with Credit Suisse AG serving as agent. There is $312.2 million owing on two issues of 10.125 percent senior unsecured notes. Interested parties can also contact Rural/Metro's claims agent, Donlin, Recano & Company, Inc. directly by calling Rural/Metro's restructuring hotline at 212-771-1128. Willkie Farr & Gallagher LLP and Young Conaway Stargatt & Taylor, LLP are serving as legal counsel, Lazard Freres & Co. L.L.C. is serving as investment banker, and Alvarez & Marsal and FTI Consulting, Inc. are serving as financial advisors to Rural/Metro. PHYSIOTHERAPY HOLDINGS: Completes Seven-Week Chapter 11 ------------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that Physiotherapy Holdings Inc., a provider of outpatient physiotherapy, implemented the prepackaged Chapter 11 reorganization plan on Dec. 31 that was approved on Dec. 23. According to the report, the company, which filed on Nov. 11, was in and out of bankruptcy court in seven weeks. The plan gives noteholders all the stock in exchange for debt and a predicted recovery of 40.3 percent. Noteholders voted for the plan before the Chapter 11 filing. The company has 581 outpatient clinics in 29 states. It was acquired in May 2012 by Court Square Capital Partners LP in a $535.1 million transaction. About Physiotherapy Holdings Physiotherapy Holdings, Inc., and its affiliates sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D. Del. Case No. 13-12965) on Nov. 12, 2013. The Debtors are the largest pure-play provider of outpatient physical therapy services in the United States with a national footprint of 581 outpatient rehabilitation and orthotics & prosthetics clinics located in 29 states plus the District of Columbia. The Debtor is represented by Domenic E. Pacitti, Esq., and Michael W. Yurkewicz, Esq., at Klehr Harrison Harvey Branzburg, LLP, in Wilmington, Delaware; Morton Branzburg, Esq., at Klehr Harrison Harvey Branzburg LLP, in Philadelphia, Pennsylvania; and Jonathan S. Henes, P.C., Esq., Nicole L. Greenblatt, Esq., and David S. Meyer, Esq., at Kirkland & Ellis LLP, in New York. The Ad Hoc Committee of Senior Noteholders is represented by Michael L. Tuchin, Esq., and David A. Fidler, Esq., at Klee, Tuchin, Bogdanoff & Stern LLP, in Los Angeles, California. U.S. Bank, National Association, as Bridge Loan Agent, is represented by Stacey Rosenberg, Esq., at Latham & Watkins LLP, in Los Angeles, California. The Bank of New York Mellon Trust Company, N.A., as Senior Notes Indenture Trustee, is represented by Eric A. Schaffer, Esq., at Reed Smith, in Pittsburgh, Pennsylvania. The Consenting Shareholders are represented by Michael J. Sage, Esq., Matthew L. Larrabee, Esq., and Nicole B. Herther-Spiro, Esq., at Dechert LLP, in New York. Roberta A. Deangelis, the United States Trustee for Region 3 notified the U.S. Bankruptcy Court for the District of Delaware that a committee of unsecured creditors has not been appointed in the Chapter 11 cases of Physiotherapy Holdings, Inc. SB PARTNERS: Incurs $266,600 Net Loss in Third Quarter ------------------------------------------------------ SB Partners filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $266,622 on $629,145 of total revenues for the three months ended Sept. 30, 2013, as compared with a net loss of $318,227 on $567,187 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 $843,116 on $1.87 million of total revenues as compared with a net loss of $859,902 on $1.84 million of total revenues for the same period a year ago. SB Partners incurred a net loss of $1.10 million in 2012 as compared with a net loss of $1.02 million in 2011. As of Sept. 30, 2013, the Company had $17.42 million in total assets, $22.06 million in total liabilities and a $4.63 million total partners' deficit. As of Sept. 30, 2013, the Company had cash and cash equivalents of approximately $477,000. These balances are approximately $74,000 higher than cash and cash equivalents held on Dec. 31, 2012. Cash and cash equivalents increased during the nine months ended Sept. 30, 2013, due to cash flow generated from operating activities at Company's two wholly owned properties which was partially used to pay interest and principal on Company's loan and partnership expenses. A copy of the Form 10-Q is available for free at: http://is.gd/LuzWhO 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. SECUREALERT INC: Delays Form 10-K for Fiscal 2013 ------------------------------------------------- SecureAlert, Inc., filed with the U.S. Securities and Exchange Commission a Notification of Late Filing on Form 12b-25 with respect to its annual report on Form 10-K for the period ended Sept. 30, 2013. The Company said it was unable to complete adjustments to the financial statements and narritive portions of the Form 10-K that resulted from events occurring immediately before the filing deadline. 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. SIMPLY WHEELZ: Court Approves Sale of Assets to Catalyst Group -------------------------------------------------------------- Franchise Services of North America Inc. on Jan. 6 disclosed that the U.S. Bankruptcy Court for the Southern District of Mississippi has declared that The Catalyst Group, Inc. (on behalf of one or more funds managed by it) is the prevailing purchaser in the auction of certain of the assets of the Company's wholly-owned subsidiary, Simply Wheelz LLC, which does business as Advantage Rent A Car, and has approved the sale of the Advantage assets to Catalyst free of all liens and other encumbrances. The auction was conducted in accordance with bidding procedures approved by the Bankruptcy Court as part of the Simply Wheelz insolvency proceedings. Sixt SE has been declared the back-up bidder under the Bid Procedures in the event that Simply Wheelz is not able to complete the sale transaction with Catalyst within the specified period of time. Simply Wheelz hopes to complete its sale to Catalyst in the first quarter of 2014. However, the Company cautions that there are a number of procedural matters and arrangements with third parties that will need to be completed before such sale can be consummated. Simply Wheelz filed for U.S. federal bankruptcy protection on November 6, 2013. The Company also announces that Robert M. Barton has ceased to serve as President and Chief Operating Officer of the Company. Mr. Barton's responsibilities as the Company's President and Chief Operating Officer have been temporarily assumed by Thomas P. McDonnell, III, the Company's Chief Executive Officer and Chairman. * * * Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that Advantage Rent A Car got formal approval from the bankruptcy court on Jan. 2 to sell its business to Catalyst Capital Group Inc. in exchange for the $46 million loan financing the Chapter 11 reorganization. According to the report, the company, formally named Simply Wheelz LLC and based in Ridgeland, Mississippi, got bankruptcy court approval on Dec. 19 of a settlement with Hertz Global Holdings Inc. to assure continuing use of vehicles acquired when Franchise Services of North America NA bought the business and 24,000 vehicles early last year from Hertz. Catalyst won the auction for Advantage by increasing the Chapter 11 financing. In addition, Toronto-based Catalyst agreed to overlook a default on the bankruptcy loan. Hertz agreed to divest Advantage to obtain antitrust clearance for its takeover of Dollar Thrifty. About Simply Wheelz Simply Wheelz LLC sought protection under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Miss. Case No. 13-03332) on Nov. 5, 2013. The case is assigned to Judge Edward Ellingon. The Debtor estimated assets and debt in excess of $100 million. The Debtors are represented by Christopher R. Maddux, Esq., and Stephen W. Rosenblatt, Esq., at Butler Snow O'Mara Stevens & Cannada, in Ridgeland, Mississippi. SIMPLY WHEELZ: Wants to Incur $100MM Credit From HFC Acceptance --------------------------------------------------------------- Simply Wheelz LLC asks the U.S. Bankruptcy Court for the Southern District of Mississippi for authorization to obtain postpetition lease and credit facility of up to $50,000,000 on an interim basis; and up to $100,000,000 on the final basis, from HFC Acceptance, LLC. The Debtor will use the loan to fund continued business operations. The loan will bear interest at 7% per annum. The loan will mature five years from the effective date of the DIP Documents or the date on which HFC terminates the DIP Facility as a result of the occurrence and during the continuance of an event of default. About Simply Wheelz LLC Simply Wheelz LLC sought protection under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Miss. Case No. 13-03332) on Nov. 5, 2013. The case is assigned to Judge Edward Ellingon. The Debtor disclosed $413,502,259 in assets and $322,230,695 in liabilities as of the Chapter 11 filing. The Debtors are represented by Christopher R. Maddux, Esq., and Stephen W. Rosenblatt, Esq., at Butler Snow O'Mara Stevens & Cannada, in Ridgeland, Mississippi. SIONIX CORP: Delays Form 10-K for Fiscal 2013 --------------------------------------------- Sionix Corporation filed with the U.S. Securities and Exchange Commission a Notification of Late Filing on Form 12b-25 with respect to its annual report on Form 10-K for the period ended Sept. 30, 2013. The Company has experienced a delay in completing the information necessary for including in its Annual Report, in particular its financial statements, for the year ended Sept. 30, 2013. The Company expects to file the Annual Report within 15 days of the prescribed due date. About Sionix Corp. Los Angeles, Calif.-based Sionix Corporation designs, develops, markets and sells cost-effective water management and treatment solutions intended for use in the oil and gas, agriculture, disaster relief, and municipal (both potable and wastewater) markets. Sionix incurred a net loss of $5.76 million for the year ended Sept. 30, 2012, compared with a net loss of $6.30 million during the prior year. The Company's balance sheet at June 30, 2013, showed $1.04 million in total assets, $7.62 million in total liabilities and a $6.58 million total stockholders' deficit. Kabani & Company, Inc., in Los Angeles, California, 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 cumulative losses of $37,560,000. In addition, the company has had negative cash flow from operations for the years ended Sept. 30, 2012, of $2,568,383. These factors raise substantial doubt about the Company's ability to continue as a going concern. SOUTHERN MONTANA ELECTRIC: Settlement Talks Already Planned ----------------------------------------------------------- The Associated Press reported Jan. 4 that settlement talks are planned next week in a dispute over the future of a bankrupt Montana power cooperative. Members of the Southern Montana Electric Generation and Transmission Cooperative are seeking to liquidate its assets and break up the co-op, according to The Associated Press. But creditors who loaned the co-op money for a failed power plant project want it to stay intact so they can be repaid, the report notes. The Associated Press relates that co-op board members were meeting Friday to discuss the liquidation plan ahead of next week's negotiations in Billings. Creditors including Prudential Insurance have proposed reorganizing Southern to recoup an $85 million loan used to build the Highwood power plant near Great Falls, the report discloses. The creditors' plan would mean higher electricity rates for more than 10,000 customers served by Southern's four member co-ops in central and eastern Montana, the report notes. SPENDSMART PAYMENTS: Incurs $12.6 Million Net Loss in Fiscal 2013 ----------------------------------------------------------------- The Spendsmart Payments Company filed with the U.S. Securities and Exchange Commission its annual report on Form 10-K disclosing a net loss and comprehensive loss of $12.58 million on $1.02 million of revenues for the year ended Sept. 30, 2013, as compared with a net loss and comprehensive loss of $21.09 million on $1 million of revenues during the prior year. As of Sept. 30, 2013, the Company had $1.27 million in total assets, $1.39 million in total liabilities, all current, and a $123,174 total stockholders' deficit. EisnerAmper LLP, in Iselin, New Jersey, issued a "going concern" qualification on the consolidated financial statements for the year ended Sept. 30, 2013. The independent auditors noted that the Company has incurred net losses since inception and has an accumulated deficit at Sept. 30, 2013. These factors among others raise substantial doubt about the ability of the Company to continue as a going concern. A copy of the Form 10-K is available for free at: http://is.gd/PK03Ta About SpendSmart San Diego, Cal.-based The SpendSmart Payments Company is a Colorado corporation. Through the Company's subsidiary incorporated in the state of California, The SpendSmart Payments Company, the Company issues and services prepaid cards marketed to young people and their parents. The Company is a publicly traded company trading on the OTC Bulletin Board under the symbol "SSPC." STACY'S INC: Hearing on Cash Collateral Use Set for Jan. 23 ----------------------------------------------------------- The Hon. David R. Duncan of the U.S. Bankruptcy Court for the District of South Carolina has set for Jan. 23, 2014, at 2:00 p.m., the hearing on Stacy's Inc.'s use of cash collateral. The Debtor is authorized to release $50,000 to SSG Capital, LLC, from the cash collateral funds upon approval of SSG's fee application, but this does not constitute, and may not be construed to constitute, consent to the payment of any other amounts not provided for in the court order. A distribution of $430,000 of the sales proceeds will be made to Bank of the West. The parties have partially resolved the cash collateral motion, and have agreed to continue the hearing on the remainder of the cash collateral motion. As reported by the Troubled Company Reporter on Dec. 17, 2013, BOTW objected to the Debtor's motion to use cash collateral. BOTW said that, in connection with the negotiation of a consent sale order regarding the sale of substantially all of the Debtor's assets, BOTW agreed to a carve out of $1,400,000 from the sale proceeds, with $950,000 to be reserved for the payment of allowed administrative expense claims and $450,000 to be reserved for payment of allowed general unsecured claims. BOTW said that the Court must require that all administrative expenses in excess of the Sept. 5, 2013 budget be paid from the Admin Carve-Out, and that the remaining balance of the cash collateral operating account and the $600,000 "cushion" held in the trust account of the Debtor's counsel be paid to BOTW immediately. In a filing dated Dec. 19, 2013, the Debtor said that it has been able to obtain further information about the specific cash collateral needed and the use of the cash collateral. According to the Debtor, the sale order does not alter the treatment of cash collateral or even comment on the subject but provides for an allocation of the sales proceeds. About Stacy's Inc. Stacy's Inc., a commercial greenhouse in York, South Carolina, filed a Chapter 11 petition on June 21 (Bankr. D. S.C. Case No. 13-03600) in Spartanburg, South Carolina, with a deal to sell the business for $17 million to Metrolina Greenhouses, absent higher and better offers. Stacy's -- http://www.stacysgreenhouses.com/-- has 16 acres of greenhouses on three farms aggregating 260 acres in York, South Carolina. The business employs 1,000 people during its peak season. The biggest customers include Home Depot, Lowe's, Wal- Mart, Tractor Supply Company, Costco, and Harris Teeter. The secured lender is Bank of the West, owed $22.1 million secured by liens on the assets. The Debtor disclosed $26.4 million in total assets and $31.4 million in liabilities in its schedules. The secured lender is Bank of the West, owed $22.1 million secured by liens on the assets. The Debtor has tapped Barton Law Firm, P.A, as bankruptcy counsel; Ouzts, Ouzts & Varn, P.A., as its financial advisor; SSG Advisors, LLC, as its investment banker; and Faulkner and Thompson, P.A., to provide limited accounting services. SURTRONICS INC: Court Fixes Jan. 21 as General Claims Bar Date -------------------------------------------------------------- The U.S. Bankruptcy Court for the Eastern District of North Carolina established Jan. 21, 2014, as the deadline for any individual or entity to file a proof of claim against Surtronics, Inc. Governmental units have until March 8 to file proofs of claim. Raleigh, North Carolina-based Surtronics, Inc., filed a Chapter 11 bankruptcy petition in Wilson, North Carolina (Bankr. E.D.N.C. Case No. 13-05672) on Sept. 9, 2013. Founded in 1965, Surtronics is in the business of providing electroplating and anodizing services to base-metal alloys for use across various industries, including but not limited to aerospace, defense, medical, telecommunications, and automotive. Surtronics' primary production facility and corporate office are located in a series of buildings at 4001 and 4025 Beryl Drive, and 508 Method Road, Raleigh, North Carolina. The Debtor is represented by David A. Matthews, Esq., at Shumaker, Loop & Kendrick, LLP, in Charlotte, North Carolina. Carr Riggs & Ingram PLLC, serves as its accountants. In its schedules, the Debtor disclosed $16,300,878 in total assets and $3,507,088 in total liabilities. The Bankruptcy Administrator has been unable to organize and recommend to the Bankruptcy Court the appointment of a committee of creditors holding unsecured claims against Surtronics Inc. TELECONNECT INC: Incurs $3.5 Million Net Loss in Fiscal 2013 ------------------------------------------------------------ Teleconnect Inc. filed with the U.S. Securities and Exchange Commission its annual report on Form 10-K disclosing a net loss of $3.47 million on $355,680 of sales for the year ended Sept. 30, 2013, as compared with a net loss of $3.87 million on $143,910 of sales during the prior year. The Company's balance sheet at Sept. 30, 2013, showed $5.38 million in total assets, $2.48 million in total liabilities, all current, and $2.90 million in total stockholders' equity. Coulter & Justus, P.C., in Knoxville, Tennessee, issued a "going concern" qualification on the consolidated financial statements for the year ended Sept. 30, 2013. The independent auditors noted that the Company has suffered recurring losses from operations and has a net capital deficiency in addition to a working capital deficiency, which raise substantial doubt about its ability to continue as a going concern. A copy of the Form 10-K is available for free at: http://is.gd/yENPwP About Teleconnect Teleconnect Inc., headquartered in Breda, The Netherlands, was incorporated under the laws of the State of Florida on Nov. 23, 1998. With its ownership in Hollandsche Exploitatie Maatschappij BV (HEM), a Dutch entity established in 2007, the Company's main activities are the manufacturing, sales and lease of age validation equipment and the performance of age validation. The Company also sells and maintains vending solutions (through Mediawizz, The Netherlands), is involved in the broadcasting of in-store commercial messages using the age validation equipment between age checks (through HEM), and plans to develop market survey activities in the future (through Giga Matrix, The Netherlands). TWN INVESTMENTS: Gets Case Converted to Chapter 7 Proceeding ------------------------------------------------------------ Judge Stephen L. Johnson, for reasons stated at the hearing, granted the conversion of TWN Investment Group, LLC's Chapter 11 case to a case under Chapter 7 of the Bankruptcy Code, effective immediately. Within 15 days from the effective date of conversion, the Debtor is required to file a schedule of unpaid debts incurred after the commencement of the Chapter 11 case. Also, within 30 days from the effective date of conversion, the Debtor is directed to file and transmit to the U.S. Trustee a final report and account. The Case Conversion Motion was originally filed by the U.S. Trustee for Region 7, Tracy Hope Davis, on the grounds that the Court has granted relief from stay to the Debtor's secured creditor, East West bank, and the Debtor's real property will likely be foreclosed. The Bankruptcy Court entered its order on Dec. 9. John S. Wesolowski, Esq. -- john.wesolowski@usdoj.gov -- appeared at hearing for the U.S. Trustee. Edwina E. Dowell, Esq., also represent the U.S. Trustee. Charles B. Greene appeared at the hearing for the Debtor. About TWN Investment Group TWN Investment Group, LLC, filed a Chapter 11 petition in its home-town in San, Jose California (Bankr. N.D. Calif. Case No. 13-50821) on Feb. 13, 2013. The Company disclosed assets of $58.2 million and liabilities of $53.4 million in its schedules. The Company owns partially developed real estate located at 909- 9999 Story Road, in San Jose. The property is the company's sole assets and secures a $48.1 million debt to East West Bank. The Debtor is represented by Charles B. Greene, Esq., at the Law Offices of Charles B. Greene, in San Jose. Rene Lastreto II, Esq., at Lang Richert & Patch, represents the Committee. UNITED AMERICAN: Reports $343-K Net Loss for Q3 Ended Sept. 30 -------------------------------------------------------------- United American Healthcare Corporation filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q, reporting a net loss of $343,000 on $1.82 million of contract manufacturing revenue for the three months ended Sept. 30, 2013, compared to a net income of $83,000 on $1.91 million of contract manufacturing revenue for the same period in the prior year. The Company's balance sheet at Sept. 30, 2013, showed $15.38 million in total assets, $12.68 million in total liabilities, and stockholders' equity of $2.7 million. A copy of the Form 10-Q is available at: http://is.gd/YHFpPN 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. UNIVERSITY GENERAL: Amends Certificate of Designation ----------------------------------------------------- University General Health System, Inc., previously entered into a Securities Purchase Agreement, dated as of April 30, 2012, with institutional investors for the private issuance and sale by the Company to the Purchasers of (i) an aggregate of 7,616 shares of the Company's Series C Variable Rate Convertible Preferred Stock and (ii) warrants to purchase a number of shares of the Company's Common Stock equal to 100 percent of the shares of Common Stock underlying the Preferred Shares issued to the Purchasers pursuant to the Securities Purchase Agreement. On Dec. 26, 2013, the Company executed and filed an amendment to the Certificate of Designation of Preferences, Rights and Limitations of the Preferred Stock. Pursuant to the Amendment, the Company eliminated the adjustment to the conversion price based on the Company's net income for the 2012 fiscal year by amending and modifying Section 7(f) of the Certificate of Designation. Each of the holders of the Preferred Stock has consented to the Amendment. On Dec. 27, 2012, the Company and each holder of the Warrants entered into a Third Amendment to Warrants. Pursuant to the Third Amendment, the Company eliminated the adjustment to the exercise price based on the Company's net income for the 2012 fiscal year by amending and modifying Section 3(f) of the Warrants. A copy of the Amendment to Certificate of Designation is available for free at http://is.gd/fr1AyX A copy of the Third Amendment to Warrant is available for free at: http://is.gd/u73JaO 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. UPPER VALLEY COMMERCIAL: Files for Chapter 11 to Wind Down Biz -------------------------------------------------------------- Upper Valley Commercial Corporation, which runs a lending business in the Upper Connecticut Valley of New Hampshire, filed a Chapter 11 petition (Bankr. D. N.H. Case No. 13-13110) in Manchester, New Hampshire, on Dec. 31, 2013. The Debtor said it has recently discovered that some of its investment and lending activities lacked proper licensing by the State of New Hampshire. Although the Debtor believes it can repay all of its creditors over time, the Debtor lacks sufficient liquidity to immediately unwind its activities and repay its creditors in full. Therefore, as part of an agreement with the New Hampshire Banking Department, the Debtor plans to wind down its operations through a plan of liquidation. The primary business of the Debtor has been to lend to retail and wholesale propane companies, including Patten's Gas, but it also lends to other commercial businesses and individuals. To finance its lending, the Debtor borrowed from businesses and individuals by issuing un-certificated demand promissory notes and certificated term promissory notes. Under its chapter 11 plan of liquidation, the Debtor will no longer borrow or accept investments from outsiders except to draw on its line of credit with Woodsville Guaranty Savings Bank and Patten's Gas. The Debtor is paying its monthly loan obligations in the ordinary course and collecting on the loans owed to it. The Debtor is no longer accepting outside loans or investments and will use proceeds received during the life of the chapter 11 plan to pay overhead, pay interest to its prepetition lenders, and wind down its operations. According to the docket, the Chapter 11 plan and explanatory disclosure statement are due April 30, 2014. The Debtor has quickly filed motions to use cash collateral and borrow $300,000. The Debtor said that because its assets exceed its liabilities, the Debtor will propose a plan that pays its debts in full. $12.4 Million in Total Assets In its schedules, the Debtor disclosed total assets of $12.4 million, comprised of $220,000 in real property and $12.2 million in personal property. Liabilities total $11.58 million. Secured creditor Woodsville Guaranty Savings Bank is owed $1.08 million, and unsecured creditors holding nonpriority claims are owed a total of $10.5 million. According to the statement of financial affairs, operating income was $807,000 in 2012 and $798,000 in 2013. The Debtor is represented by attorneys at The Tamposi Law Group, in Nashua, New Hampshire. Pursuant to 11 U.S.C. Sec. 341(a), the United States Trustee has scheduled the meeting of creditors to take place on Feb. 6, 2014, at 1:00 p.m. Notices of appearance and requests for notice have been filed by the State of New Hampshire, the U.S. Trustee, and Woodsville Guaranty Savings Bank. UPPER VALLEY COMMERCIAL: Proposes to Use Cash Collateral -------------------------------------------------------- Upper Valley Commercial Corporation asks the bankruptcy court for approval for the limited use of cash collateral for a period of 13 weeks to pay the costs and expenses incurred by the Debtor in the ordinary course of business during the period between Jan. 4, 2014 and April 4, 2014. The Debtor said its secured creditor, Woodsville Guaranty Savings Bank, assents to the use of cash collateral. Woodsville is owed $1.15 million on a revolving line of credit with a limit of $2 million, which appears to be secured by all of the assets of the Debtor. The Debtor believes that Woodsville will be protected by the significant cash collateral "equity cushion" that presently exists, to wit: $12.2 million in accounts receivable securing debt of approximately $1.14 million. Nevertheless, as additional adequate protection, the Debtor will grant Woodsville replacement liens and security interests in all postpetition property of the estate. The Debtor believes its limited use of cash collateral will permit it to maintain essential business operations in order to collect on loans, pay down its own obligations, and wrap up operations over a period of approximately 60 months. The Debtor says it does not have enough liquidity to pay all of its debts in full immediately. It needs time to collect on its outstanding loans in due course using the funds to pay down its debt over the wind-down period. Prepetition, the Debtor borrowed from businesses and individuals to finance its lending by issuing un-certificated demand promissory notes and certificated term promissory notes. During the 13-week period postpetition, the Debtor expects to spend $25,132 as regular interest payments to its unsecured pre-petition lenders. Some of these entities are retirees who rely on the regular payments for support. With an organized wind down through its proposed liquidating plan, the Debtor expects to collect its receivables successfully and pay its debts in full without causing an undue hardship on its prepetition lenders and customers. About Upper Valley Commercial Corporation Upper Valley Commercial Corporation, which runs a lending business in the Upper Connecticut Valley of New Hampshire, filed a Chapter 11 petition (Bankr. D. N.H. Case No. 13-13110) in Manchester, New Hampshire, on Dec. 31, 2013. Upper Valley Commercial Corporation said it is liquidating its assets after discovering that some of its investment and lending activities lacked proper licensing by the State of New Hampshire. The Debtor will file a liquidating plan as part of an agreement with the New Hampshire Banking Department. In its schedules, the Debtor disclosed total assets of $12.4 million and total liabilities of $11.58 million. The Debtor is represented by attorneys at The Tamposi Law Group, led by Peter N. Tamposi, Esq., in Nashua, New Hampshire. UPPER VALLEY COMMERCIAL: Seeks to Continue Funding From Woodsville ------------------------------------------------------------------ Upper Valley Commercial Corporation asks for authority from the bankruptcy court to obtain DIP financing from existing secured creditor Woodsville Guaranty Savings Bank. While the amount of the DIP financing was not stated in the motion, the docket indicates that the Debtor is seeking approval to borrow $300,000. Woodsville is already owed $1.15 million on a revolving line of credit with a limit of $2 million which appears to be secured by all of the assets of the Debtor. Prepetition, the Debtor routinely lent operating funds to Park J. Patten, Inc., d/b/a Patten's Gas, a wholesale and retail gas supplier. PG is an affiliated non-debtor entity owned by Alvin Fadden and David Patten. The financing by the Debtor helps PG manage its liquidity during the first quarter of the year; the funds are typically used to purchase propane, which is in turn sold to its customers. PG has guaranteed the Debtor's loan to Woodsville and has pledged real property worth approximately $1,900,000 in support of that guaranty. The Debtor wishes to continue the PG Loan during the heating season and Woodsville assents to same, provided that: (a) In no event will the Debtor increase its line of credit with Woodsville above the present cap of $2,000,000; (b) No proposed postpetition draws on the line of credit will be permitted without the prior consent of Woodsville, which consent will not be unreasonably withheld; (c) Nothing herein will require Woodsville to permit further post-petition drawings on the line of credit; (d) Woodsville will retain, without modification, all of its pre-petition rights under the applicable loan and collateral documents; (e) Woodsville may, in its sole discretion, freeze the line of credit and preclude further drawings or extensions of credit in the event that the Debtor, or any related individual or entity, fails to comply with the material provision of any loan and collateral documents, or otherwise fails to comply with its obligations under any cash collateral orders entered in this case; and (f) The Debtor will repay in full such amounts to Woodsville as they are repaid by PG or through any refinancing that may be approved by the Court. The Debtor seeks authority to: (1) draw on its existing line of credit with Woodsville in a revolving manner up to the maximum of $2 million; and (2) grant Woodsville a postpetition lien on all of its assets. Pending final hearing on the DIP Loan, the Debtor anticipates needing to draw against the secured loan to cover the loan it needs to extend to PG. These funds must be advanced immediately in order to allow PG to purchase the necessary gas for its customers. The Debtor and PG have insufficient cash to make such purchases without drawing on the secured loan as it has done in past years in the ordinary course of its business The Debtor's counsel, Peter N. Tamposi, Esq., at The Tamposi Law Group, P.C., avers that if the Debtor is not allowed to continue lending on the PG Loan, the customers of PG and the upper valley community in general will suffer adverse consequences. According to Mr. Tamposi, without the PG Loan continuing, PG will no longer be able to supply its customers with propane. PG presently supplies propane, either directly or through eleven wholesale suppliers, to between 15,000 and 20,000 homes. PG also supplies three manufacturing facilities and one ski area with gas. About Upper Valley Commercial Corporation Upper Valley Commercial Corporation, which runs a lending business in the Upper Connecticut Valley of New Hampshire, filed a Chapter 11 petition (Bankr. D. N.H. Case No. 13-13110) in Manchester, New Hampshire, on Dec. 31, 2013. Upper Valley Commercial Corporation said it is liquidating its assets after discovering that some of its investment and lending activities lacked proper licensing by the State of New Hampshire. The Debtor will file a liquidating plan as part of an agreement with the New Hampshire Banking Department. In its schedules, the Debtor disclosed total assets of $12.4 million and total liabilities of $11.58 million. The Debtor is represented by attorneys at The Tamposi Law Group, led by Peter N. Tamposi, Esq., in Nashua, New Hampshire. UPPER VALLEY COMMERCIAL: Section 341(a) Meeting Set on Feb. 6 ------------------------------------------------------------- A meeting of creditors in the bankruptcy case of Upper Valley Commercial Corporation will be held on Feb. 6, 2014, at 1:00 p.m. at Room 702, Seventh Floor, 1000 Elm Street, Manchester, NH. This is the first meeting of creditors required under Section 341(a) of the Bankruptcy Code in all bankruptcy cases. All creditors are invited, but not required, to attend. This meeting of creditors offers the one opportunity in a bankruptcy proceeding for creditors to question a responsible office of the Debtor under oath about the company's financial affairs and operations that would be of interest to the general body of creditors. Upper Valley Commercial Corporation filed a Chapter 11 bankruptcy petition (Bankr. D.N.H. Case No. 13-13110) on Dec. 31, 2013. The petition was signed by David Patten as president. In its petition, the Debtor disclosed total assets of $12.40 million and total debts of $11.58 million. The Tamposi Law Group, P.C., serves as the Debtor's counsel. McLane, Graf, Raulerson & Middleton, PA, is the Debtor's special securities and banking counsel. VELTI INC: Blackstone's GSO Completes Acquisition ------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that Velti Inc., a provider of marketing and advertising services for mobile devices, completed the sale of its business to a Blackstone Group LP affiliate on Jan. 3. According to the report, Velti filed for Chapter 11 protection on Nov. 4 in Delaware. The bankruptcy judge approved the sale on Dec. 20 to Blackstone's GSO Capital Partners LP. The contract was negotiated before bankruptcy. GSO acquired the business in exchange for debt, the assumption of specified debt, and $1.25 million in cash for curing payment defaults on contracts going along with the sale. GSO purchased the $56.4 million secured credit on Nov. 1 from HSBC Bank NA, the lenders' agent. Velti, with headquarters in San Francisco and Atlanta, listed assets for less than $50 million. It has $6.2 million in unsecured debt, according to a court filing. The company said the "vast majority" will be paid in full. About Velti Inc. Velti Inc., a provider of technology for marketing on mobile devices, sought Chapter 11 protection (Bankr. D. Del. Case No. 13-12878) on Nov. 4, 2013. Velti Inc., a San Francisco-based unit of Velti Plc, listed assets of as much $50 million and debt of as much as $100 million. Its Air2Web Inc. unit, based in Atlanta, also sought creditor protection. The parent, Dublin, Ireland-based Velti Plc, which trades on the Nasdaq Stock Market, isn't part of the bankruptcy process. Operations in the U.K., Greece, India, China, Brazil, Russia, the United Arab Emirates and elsewhere outside the U.S. didn't seek protection and business there will continue as usual. The Debtors are represented by attorneys Stuart M. Brown, Esq., at DLA Piper LLP (US), in Wilmington, Delaware; and Richard A. Chesley, Esq., Matthew M. Murphy, Esq., and Chun I. Jang, Esq., at DLA Piper LLP (US), in Chicago, Illinois. The Debtors have also tapped Jefferies LLC as investment banker, Sitrick Brincko Group LLC, as corporate communications consultants, and BMC Group, Inc., as claims and noticing agent. U.S. Bank, National Association, as administrative agent for GSO Credit-A Partners, LP, GSO Palmetto Opportunistic Investment Partners LP and GSO Coastline Partners LP, extended $25 million of postpetition financing to the Debtors. The DIP Lenders, which are also the Prepetition Lenders, are represented by Sandy Qusba, Esq., and Hyang-Sook Lee, Esq., at Simpson Thacher & Bartlett LLP, in New York. An Official Committee of Unsecured Creditors has been appointed in the Debtors' cases. The Committee has tapped McGuireWoods LLP as lead counsel and Morris, Nichols, Arsht & Tunnell LLP as Delaware co-counsel. Asgaard Capital LLC serves as financial advisor to the Committee. Capstone Advisory Group LLC serves as consultant. VELTI INC: Files Schedules of Assets and Liabilities ---------------------------------------------------- Velti Inc., filed with the U.S. Bankruptcy Court for the District of Delaware its schedules of assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ----------- ----------- A. Real Property $0 B. Personal Property $94,993,551 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $56,404,014 E. Creditors Holding Unsecured Priority Claims $845,564 F. Creditors Holding Unsecured Non-priority Claims $117,839,870 ----------- ----------- TOTAL $94,993,551 $175,089,448 Air2Web, Inc., also filed its schedules disclosing $10,299,330 in assets and $58,124,992 in liabilities as of the Chapter 11 filing. A copy of the schedules is available for free at http://bankrupt.com/misc/VELTIINCsal.pdf http://bankrupt.com/misc/VELTIINCsal2.pdf About Velti Inc. Velti Inc., a provider of technology for marketing on mobile devices, sought Chapter 11 protection (Bankr. D. Del. Case No. 13-12878) on Nov. 4, 2013. Velti Inc., a San Francisco-based unit of Velti Plc, listed assets of as much $50 million and debt of as much as $100 million. Its Air2Web Inc. unit, based in Atlanta, also sought creditor protection. The parent, Dublin, Ireland-based Velti Plc, which trades on the Nasdaq Stock Market, isn't part of the bankruptcy process. Operations in the U.K., Greece, India, China, Brazil, Russia, the United Arab Emirates and elsewhere outside the U.S. didn't seek protection and business there will continue as usual. The Debtors are represented by attorneys Stuart M. Brown, Esq., at DLA Piper LLP (US), in Wilmington, Delaware; and Richard A. Chesley, Esq., Matthew M. Murphy, Esq., and Chun I. Jang, Esq., at DLA Piper LLP (US), in Chicago, Illinois. The Debtors have also tapped Jefferies LLC as investment banker, Sitrick Brincko Group LLC, as corporate communications consultants, and BMC Group, Inc., as claims and noticing agent. U.S. Bank, National Association, as administrative agent for GSO Credit-A Partners, LP, GSO Palmetto Opportunistic Investment Partners LP and GSO Coastline Partners LP, extended $25 million of postpetition financing to the Debtors. The DIP Lenders, which are also the Prepetition Lenders, are represented by Sandy Qusba, Esq., and Hyang-Sook Lee, Esq., at Simpson Thacher & Bartlett LLP, in New York. An Official Committee of Unsecured Creditors has been appointed in the Debtors' cases. The Committee has tapped McGuireWoods LLP as lead counsel and Morris, Nichols, Arsht & Tunnell LLP as Delaware co-counsel. Asgaard Capital LLC serves as financial advisor to the Committee. Capstone Advisory Group LLC serves as consultant. VERITY CORP: Delays Form 10-K for Fiscal 2013 --------------------------------------------- Verity Corp filed with the U.S. Securities and Exchange Commission a Notification of Late Filing on Form 12b-25 with respect to its annual report on Form 10-K for the period ended Sept. 30, 2013. The compilation, dissemination and review of the information required to be presented in the Form 10-K for the relevant fiscal year end has imposed time constraints that have rendered timely filing of the Form 10-K impracticable without undue hardship and expense to the Company. The Company undertakes the responsibility to file that Annual Report no later than 15 days after its original due date. 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: To Sell Ontario Property for $1.25 Million ----------------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that Vertis Inc., the advertising and marketing company that sold most of its assets last year, will sell a facility in Stevensville, Ontario, for $1.25 million barring a higher offer at a Feb. 4 auction. According to the report, the Baltimore-based company sold most of the assets a year ago this month to Quad/Graphics Inc. for a net purchase price of about $170 million, the buyer said. Quad didn't buy the Stevensville facility. Vertis signed a buyer to a $1.25 million contract for the Ontario property and last week the bankruptcy court in Delaware approved auction procedures. Competing bids are due Jan. 30. The Feb. 4 auction will be followed by a sale-approval hearing on Feb. 11. The sale to Quad created a $20 million fund to wind down the remainder of the bankruptcy. About $10 million was left in November, according to a court filing. 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. VIGGLE INC: Trinity TVL Held 5.2% Equity Stake at December 16 ------------------------------------------------------------- Trinity TVL VIII, LLC, and its affiliates disclosed in a Schedule 13G filed with the U.S. Securities and Exchange Commission that as of Dec. 16, 2013, they beneficially owned 6,080,426 shares of common stock of Viggle Inc. representing 5.2 percent of the shares outstanding. A copy of the regulatory filing is available at: http://is.gd/66HJtn About Viggle New York City-based Viggle Inc. is a loyalty marketing company. The Company has developed a loyalty program for television that gives people real rewards for checking into the television shows they are watching on most mobile operating system. Viggle users can redeem their points in the app's rewards catalog for items such as movie tickets, music, or gift cards. Viggle incurred a net loss of $91.40 million on $13.90 million of revenues for the year ended June 30, 2013, as compared with a net loss of $96.51 million on $1.73 million of revenues during the prior year. The Company's balance sheet at Sept. 30, 2013, showed $16.06 million in total assets, $36.26 million in total liabilities, $36.83 million in series A convertible redeemable preferred stock, and a $57.04 million total stockholders' deficit. BDO USA, LLP, in New York, issued a "going concern" qualification on the consolidated financial statements for the year ended June 30, 2013. The independent auditors noted that the Company has suffered recurring losses from operations and at June 30, 2013, has deficiencies in working capital and equity that raise substantial doubt about its ability to continue as a going concern. VISUALANT INC: Delays Annual Report for Fiscal 2013 --------------------------------------------------- Visualant, Incorporated, filed with the U.S. Securities and Exchange Commission a Notification of Late Filing on Form 12b-25 with respect to its annual report on Form 10-K for the period ended Sept. 30, 2013. A delay in receiving financial information, questions regarding the accounting treatment of certain financial items, and the inability of the Company to incorporate that information into the Form 10-K without unreasonable effort and expense, has caused the inability to file the Annual Report timely. About Visualant Inc. Seattle, Wash.-based Visualant, Inc., was incorporated under the laws of the State of Nevada on Oct. 8, 1998. The Company develops low-cost, high speed, light-based security and quality control solutions for use in homeland security, anti- counterfeiting, forgery/fraud prevention, brand protection and process control applications. Visualant incurred a net loss of $2.72 million for the year ended Sept. 30, 2012, compared with a net loss of $2.39 million for the same period during the prior year. The Company's balance sheet at June 30, 2013, showed $5.59 million in total assets, $7.32 million in total liabilities, $46,609 in noncontrolling interest and a $1.78 million total stockholders' deficit. PMB Helin Donovan, LLP, in Nov. 10, 2012, 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 sustained a net loss from operations and has an accumulated deficit since inception which raise substantial doubt about the Company's ability to continue as a going concern. WATERSIDE CAPITAL: To Contest SBA Receivership Suit --------------------------------------------------- Waterside Capital Corporation, a Small Business Investment Company, is a party to a Loan Agreement with the U.S. Small Business Administration. Under the terms of the Loan Agreement, the Company's then existing debentures were repurchased effective September 1, 2010 by the SBA and a new debt instrument was put into place. The Company's debt to the SBA matured March 31, 2013. As disclosed in the Company's Form 8-K filed with the U.S. Securities and Exchange Commission on Nov. 29, 2013, the Company learned on Nov. 28, 2013 that the SBA had filed a complaint in the U.S. District Court for the Eastern District of Virginia on Nov. 20, 2013 seeking, among other things, receivership for the Company and a judgment in the amount outstanding under the Loan Agreement plus continuing interest. In the Form 8-K, the Company stated that it did not intend to contest the actions of the SBA. The Board of Directors of the Company has now further studied the Complaint. Moreover, as a result of discussions with the SBA, a review of the Company's actions since 2010, and additional substantive discussions with its advisors, the Company has re-evaluated its initial position. As a result, the Company will take steps to contest the Complaint. There can be no assurance that the Company will be successful in contesting the Complaint or otherwise impacting the timing, circumstances or consequences of the SBA's request that it be named permanent receiver of the Company for the purpose of liquidating all of the Company's assets and satisfying the claims of its creditors. About Waterside Capital Waterside Capital Corporation -- http://www.watersidecapital.com/ -- is a Small Business Investment Company (SBIC) headquartered in Virginia Beach, Virginia with a portfolio of approximately $11.8 million of loans and investments in 9 companies located primarily in the Mid-Atlantic region. Waterside Capital's individual investments range from $500,000 to over $3 million. WESTMORELAND COAL: To Buy Sherritt's Coal Operations for $435MM --------------------------------------------------------------- Westmoreland Coal Company has entered into an agreement to acquire the Prairie and Mountain coal mining operations of Sherritt International Corporation for approximately $435 million. These operations include seven producing thermal coal mines in the Canadian provinces of Alberta and Saskatchewan, a 50 percent interest in an activated carbon plant and a Char production facility. "This is an historic event for Westmoreland. The acquisition of Sherritt's coal operations represents a transformational opportunity to acquire seven producing coal mines, which are highly complementary to our existing operations and expertise," said Keith E. Alessi, Westmoreland's executive chairman. "This acquisition will more than double our business. It greatly diversifies our customer base and expands our operations into Western Canada, widely considered to be one of the most attractive mining jurisdictions globally. The combined business will be the sixth largest North American coal producer, as measured by 2012 production. Additionally, the activated carbon and Char activities, although small in proportion to the coal business, represent value-added product streams and provide an expansion in the industrial environmental market and entrance into the consumer market. We hope to expand these relationships." "We look forward to welcoming the Prairie and Mountain workforces into our family," continued Alessi. "From our diligence, we know they share our corporate values of safety, environmental stewardship and superior production. Westmoreland has an outstanding record of working cooperatively with our represented workforces and we anticipate similar relationships with the Sherritt represented workforces. Additionally, we look forward to partnering with our new power generation customers in Western Canada to provide low cost electricity to the region. We also look forward to working with all of our other customers and joint venture partners. We anticipate forging strong relationships with the various provinces, communities and with the First Nations. We appreciate the positive relationship we have had with Sherritt management and advisors throughout this process and look forward to working with them through this transition." Robert P. King, Westmoreland's president and chief executive officer also noted, "This acquisition significantly enhances our asset portfolio and positions Westmoreland as the leading mine mouth coal producer in North America. Furthermore, the Mountain operations and associated port capacity adds attractive optionality to our business model allowing us to deliver premium thermal coal into high growth Asian markets." The Prairie operations consist of six operating surface mines located within the Canadian provinces of Alberta and Saskatchewan and control of the mining rights to approximately 654 million tons of coal as of Dec. 31, 2012. In 2012, the Prairie operations being acquired delivered approximately 22 million tons of low- sulfur thermal coal to domestic utilities. The Mountain operations consist of one operating surface mine, located in Alberta, that produced approximately 4.0 million tons of low- sulfur, thermal coal in 2012, primarily for the export market, and one surface mine currently in reclamation. The Mountain operations hold an aggregate reserve of approximately 22 million tons of coal as of Dec. 31, 2012. The transaction also includes a Char production facility which sells to barbeque briquette producers and a 50 percent partnership interest in an Activated Carbon plant with Cabot Corporation. The Char plant produced 130,000 tons of Char in 2012 and the Activated Carbon plant produced 14,500 tons of activated carbon in 2012. For the last twelve months ended Sept. 30, 2013, Sherritt's estimated U.S. GAAP Prairie and Mountain operations revenue were $736 million USD. Investment Highlights The acquisition of Sherritt's coal operations will significantly increase Westmoreland's scale, provide a platform for future growth and enhance Westmoreland's asset portfolio. * Annual production of approximately 27 million tons doubles the production of the Company. * A combined reserve base over Prairie and Mountain operations of over 675 million tons provides long term sustainability and security of supply for customers. * The Prairie mines provide fairly predictable cash flows which are consistent with Westmoreland's existing business model. * The Mountain operations provide an entry point into the export market and strategic access to port facilities. * Asset diversification into Western Canada provides entry into one of the world's most favorable mining jurisdictions. Sherritt's coal operations are highly complementary with Westmoreland's core surface mining competencies, existing mine mouth business model and customer partnering expertise. * Operations are safe and environmentally responsible. * Combination creates one of the largest dragline fleets in North America. * Operations have good relationships with employees and unions. * Workforce and management teams are highly experienced. * Operations strategically located adjacent to customer generating facilities. * Operations have long term contracts with investment grade utilities. * Contracts are structured to provide stable and predictable revenues. * Opportunities have been identified to further optimize the mining operations based on Westmoreland's experience, synergies and economies of scale. On a combined basis, the pro forma company's estimated LTM U.S. GAAP revenue would have been approximately $1.3 billion. The acquisition is expected to be financially accretive to Westmoreland on a free cash flow basis. BMO Capital Markets and Deutsche Bank have provided Westmoreland with fully-committed financing that will enable Westmoreland to fund the full purchase price, the reclamation bonding obligations and transaction expenses. Transaction Details The acquisition includes typical closing conditions, including certain regulatory approvals. As part of the transaction, Sherritt will undergo a pre-closing reorganization and sell its existing portfolio of coal and potash royalties and reserves to Altius Minerals Corporation. Also, under the terms of the arrangement agreement, Sherritt will indemnify Westmoreland against all past and future liability stemming from the Obed Mine impoundment release. The purchase price for the Prairie and Mountain operations is subject to customary adjustments including working capital. The transaction has been unanimously approved by Westmoreland's Board of Directors and is expected to be completed during the first quarter of 2014. Closing of the acquisition is subject to customary conditions, including the receipt of relevant regulatory approvals, including Investment Canada Act and Competition Act approval. There can be no assurance that the transaction will be completed or that the anticipated benefits of the acquisition will be realized. Westmoreland's Advisors BMO Capital Markets and Deutsche Bank Securities Inc. are acting as financial advisors to Westmoreland, and affiliates thereof and have provided committed financing. BMO Capital Markets has also provided an opinion to the Board of Directors of Westmoreland that the consideration to be paid by Westmoreland in connection with the Transaction is fair from a financial point of view to Westmoreland. Holland & Hart, LLP, and Gowlings Lafleur Henderson LLP are acting as legal counsel to Westmoreland. A copy of the Transcript of Conference call is available at: http://is.gd/Cuuv2X A copy of the Serritt Acquisition Overview is available at: http://is.gd/B7JUB2 Additional information is available for free at: http://is.gd/maNlE0 About Westmoreland Coal Colorado Springs, Colo.-based Westmoreland Coal Company (NYSE AMEX: WLB) -- http://www.westmoreland.com/-- is the oldest independent coal company in the United States. The Company's coal operations include coal mining in the Powder River Basin in Montana and lignite mining operations in Montana, North Dakota and Texas. Its power operations include ownership of the two-unit ROVA coal-fired power plant in North Carolina. Westmoreland Coal incurred a net loss of $13.66 million in 2012, a net loss of $36.87 million in 2011, and a net loss of $3.17 million in 2010. The Company's balance sheet at Sept. 30, 2013, showed $939.83 million in total assets, $1.22 billion in total liabilities and a $280.31 million total deficit. * * * As reported by the TCR on Nov. 6, 2012, Standard & Poor's Ratings Services raised its corporate credit rating on Englewood, Co.-based Westmoreland Coal Co. (WLB). to 'B-' from 'CCC+'. "The upgrade reflects our view that WLB is less vulnerable to default after successfully negotiating less restrictive covenant requirements for an unrated $110 million term loan due 2018," said credit analyst Gayle Bowerman. "Our assessment of WLB's business risk profile as 'vulnerable' and financial risk profile as 'highly leveraged' are unchanged. We also revised our liquidity score to 'adequate' based on the covenant relief and additional liquidity provided under the company's new $20 million asset-based loan (ABL) facility from 'less than adequate'." Westmoreland Coal carries a Caa1 corporate family rating from Moody's Investors Service. WILLOW CREEK: Section 341(a) Meeting Scheduled for February 6 ------------------------------------------------------------- A meeting of creditors in the bankruptcy case of Willow Creek San Martin Building LLC will be held on Feb. 6, 2014, at 3:00 p.m. at 341s - Foley Bldg, Room 1500. The deadline for creditors to file proofs of claim will be on May 7, 2014. This is the first meeting of creditors required under Section 341(a) of the Bankruptcy Code in all bankruptcy cases. All creditors are invited, but not required, to attend. This meeting of creditors offers the one opportunity in a bankruptcy proceeding for creditors to question a responsible office of the Debtor under oath about the company's financial affairs and operations that would be of interest to the general body of creditors. Willow Creek San Martin Building LLC filed a Chapter 11 bankruptcy petition (Bankr. D. Nev. Case No. 14-10041) on Jan. 5, 2014. The petition was signed by Donald S. Herman as manager. The Debtor estimated assets and debts of at least $10 million. Cotton, Driggs, Walch, Holley, Woloson & Thompson serves as the Debtor's counsel. The Hon. Laurel E. Davis presides over the case. WILLOW CREEK: Voluntary Chapter 11 Case Summary ----------------------------------------------- Debtor: Willow Creek San Martin Building LLC c/o Ogonna M. Atamoh, Esq. 400 South Fourth Street, Third Floor Las Vegas, NV 89101 Case No.: 14-10041 Chapter 11 Petition Date: January 5, 2014 Court: United States Bankruptcy Court District of Nevada (Las Vegas) Judge: Hon. Laurel E. Davis Debtor's Counsel: Ogonna M. Atamoh, Esq. COTTON, DRIGGS, WALCH, HOLLEY, WOLOSON & THOMPSON 400 S. 4th Street, 3rd Floor Las Vegas, NV 89101 Tel: (702) 791-0308 Fax: (702) 791-1912 Email: oatamoh@nevadafirm.com Estimated Assets: $10 million to $50 million Estimated Debts: $10 million to $50 million The petition was signed by Donald S. Herman, manager. The Debtor did not file a list of its largest unsecured creditors when it filed the petition. XENONICS HOLDINGS: SingerLewak Raises Going Concern Doubt --------------------------------------------------------- Xenonics Holdings, Inc., filed with the U.S. Securities and Exchange Commission on Dec. 19, 2013, its annual report on Form 10-K for the fiscal year ended Sept. 30, 2013. SingerLewak LLP expressed substantial doubt about the Company's ability to continue as a going concern, citing that the Company has historically suffered recurring losses from operations, has a substantial accumulated deficit and has limited revenues. The Company reported a net loss of $1.54 million on $2.38 million of net revenue in fiscal year ended Sept. 30, 2013, compared with a net loss of $2.19 million on $2.16 million of net revenue in Sept. 30, 2012. The Company's balance sheet at Sept. 30, 2013, showed $2.31 million in total assets, $2.66 million in total liabilities, and stockholders' deficit of $349,000. A copy of the Form 10-K is available at: http://is.gd/VE9HoR Carlsbad, California-based Xenonics Holdings, Inc., designs, manufactures and markets high-end, high-intensity portable illumination products and low light viewing systems (night vision). YRC WORLDWIDE: Signs $35 Million Stock Purchase Agreement --------------------------------------------------------- Carlyle Strategic Partners II, L.P., and CSP II Coinvestment, L.P., entered into an exchange agreement with YRC Worldwide Inc., pursuant to which CSP II and CSP II Coinvest agreed to exchange $20,190,552 in aggregate principal amount of the YRC Worldwide's 10 percent Series B Convertible Senior Secured Notes due 2015 for an aggregate of 1,386,044 shares of common stock. Also on Dec. 22, 2013, CSP II, CSP II Coinvest and CSP III entered into a registration rights agreement with the Company, pursuant to which the Company agreed to file, within three business days of the Closing Date, a registration statement under the Securities Act of 1933, as amended, registering the resale by CSP II, CSP II Coinvest and CSP III of the shares received by them pursuant to the Exchange Agreement and the Stock Purchase Agreement. The registration rights are subject to the restrictions in the Registration Rights Agreement. The Company will pay the expenses in connection with the registration, other than underwriting discounts and selling commissions of the holders. Also on Dec. 22, 2013, CSP III entered into a stock purchase agreement with the Company pursuant to which CSP III has agreed to purchase 2,333,333 shares of Common Stock for total consideration of $35,000,000, or $15.00 per share of Common Stock. The closing of the transactions contemplated by the Stock Purchase Agreement is subject to the conditions to closing set forth in the Stock Purchase Agreement. The transactions contemplated by the Stock Purchase Agreement and the Exchange Agreement are expected to close on or about Jan. 20, 2013. A copy of the regulatory filing is available for free at: http://is.gd/H41H4u About YRC Worldwide Headquartered in Overland Park, Kan., YRC Worldwide Inc. (NASDAQ: YRCW) -- http://www.yrcw.com/-- is a holding company that offers its customers a wide range of transportation services. These services include global, national and regional transportation as well as logistics. For the year ended Dec. 31, 2012, the Company incurred a net loss of $136.5 million on $4.85 billion of operating revenue, as compared with a net loss of $354.4 million on $4.86 billion of operating revenue during the prior year. As of Sept. 30, 2013, the Company had $2.13 billion in total assets, $2.79 billion in total liabilities and a $665.8 million total shareholders' deficit. * * * As reported by the TCR on Aug. 2, 2013, Moody's Investors Service affirmed the rating of YRC Worldwide, Inc., corporate family rating at Caa3. The ratings outlook is has been changed to positive from stable. "The positive ratings outlook recognizes the important progress that YRCW has made in restoring positive operating margins through implementation of yield management initiatives, during a period of stabilizing demand in the less than truckload ('LTL') segment," the report stated. In August 2011, Standard & Poor's Ratings Services raised its corporate credit rating on YRC Worldwide Inc. to 'CCC' from 'SD' (selective default), after YRC completed a financial restructuring. Outlook is stable. * Subjective Belief No Defense to Discharge Contempt ---------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that a subjective, incorrect belief that a discharge injunction didn't apply is an insufficient basis for defeating a contempt citation, according to a Dec. 27 ruling from the Bankruptcy Appellate Panel for the Ninth Circuit in San Francisco. According to the report, a creditor drafted a guarantee agreement to say that the debtor's bankruptcy wouldn't discharge the debt. When the guarantor filed for bankruptcy, the creditor received notice, including notice of the discharge order erasing the debt on the guarantee. After the bankruptcy concluded, the creditor sued in state court. The bankrupt and his attorneys on several occasions warned the creditor that the non-discharge language in the guarantee was ineffective. The bankrupt sued in bankruptcy court for contempt and damages. The bankruptcy judge ruled that the creditor wasn't in contempt. Even though the creditor knew about the bankruptcy, the bankruptcy judge said, the creditor's subjective belief about the inapplicability of the discharge injunction was a defense against contempt. In an unsigned opinion, the appellate panel reversed, saying the bankruptcy court took too broad a reading of In re Zilog, the governing case from the federal appeals court in San Francisco. To establish contempt, Zilog requires knowing the injunction is applicable and intending the actions that caused violation of the injunction. The appellate panel concluded that the bankruptcy court's findings of fact were clearly erroneous with regard to knowledge of the discharge injunctions. Although the creditor may have had a subjective belief that the injunction didn't apply, he was warned several times that he was violating the injunction. Consequently, the panel said, the "overwhelming weight of the evidence" undermined the lower court's finding that the creditor didn't know the injunction applied. The appellate panel said too broad a reading of Zilog "would render the bankruptcy discharge all but toothless." The appellate panel remanded the case to the lower court to determine if monetary sanctions were appropriate. The case is Chionis v. Starkus (In re Chionis), 12-1501, U.S. Ninth Circuit Bankruptcy Appellate Panel (San Francisco). * Medicare Payment Cuts May Hit Home Health Providers ----------------------------------------------------- The Partnership for Quality Home Healthcare on Jan. 6 disclosed that estimates of lower spending include deep cuts to vital Medicare benefits, including patient-preferred Medicare home health services In response to the report released on Jan. 6 by the Centers for Medicare and Medicaid Services (CMS) claiming a reduction in health spending due to the Affordable Care Act (ACA), national home health leaders warned that this claim is based in part on deep Medicare cuts that directly impact the nation's most vulnerable senior and disabled populations. These cuts, which went into effect on New Year's Day and will be imposed over the course of the next four years (2014-2017), threaten patient access to skilled home health services for millions of homebound seniors. CMS recently announced cuts to Medicare home health payments by 3.5 percent annually for four years -- the maximum allowable under the Affordable Care Act (ACA) -- thereby imposing an unprecedented total cut of 14 percent. The Centers for Medicare and Medicaid Services (CMS), within their Final Rule, concedes that these deep cuts will leave "approximately 40 percent" of all home health providers with negative margins by CY 2017. "We commend the Administration for seeking to reduce health spending, but are deeply concerned that the significant cut to home health services is the wrong approach," stated Eric Berger, CEO of the Partnership for Quality Home Healthcare. "The Administration itself has conceded that 'approximately 40 percent' of all home health providers will operate at a loss as a result of the recent rebasing cut and, therefore, face bankruptcy and closure. The unprecedented impact of this cut will reduce access to low-cost in-home healthcare services and force seniors into more costly institutional settings, which will in fact increase healthcare spending. The Administration may be able to claim lower spending today but at what cost?" The Medicare home health benefit is overwhelmingly preferred by older Americans and is the lowest-cost treatment option available to ailing seniors. Medicare home health services are delivered to approximately 3.5 million Medicare beneficiaries, who are documented as being poorer, older, sicker, and more likely from a minority population than other Medicare beneficiaries. The Partnership for Quality Home Healthcare -- http://www.homehealth4america.org-- was established to assist government officials in ensuring access to skilled home healthcare services for seniors and disabled Americans. Representing community- and hospital-based home healthcare agencies across the United States, the Partnership is dedicated to developing innovative reforms to improve the quality, efficiency and integrity of home healthcare. * Fowler White Launches Restructuring & Bankruptcy Practice ----------------------------------------------------------- Fowler White Burnett has hired 11 new attorneys and intends to hire more in 2014 to accommodate its growing local, national and international business. The firm is also launching a Restructuring & Bankruptcy practice, after having expanded into the International Tax, and Environmental and Land Use practice areas in 2013. "Over the past two years we have grown along with our clients. As part of that trend, we have seen increases in our commercial, banking and securities litigation business, as well as a recent uptick in construction litigation," says Christopher E. Knight, a Managing Shareholder of Fowler White Burnett, one of South Florida's oldest law firms. "We're also seeing growth in all practice areas, including transactional, real estate, environmental and bankruptcy." The 70-plus-year-old firm, which has hired nearly 20 new attorneys over the past two years, has begun 2014 with the launch of its Restructuring and Bankruptcy Practice Group, spearheaded by attorneys Eric A. Rosen and Kaleb Bell. Mr. Rosen joins Fowler White Burnett as a shareholder, practicing in the areas of bankruptcy and creditors' rights, out-of-court debt restructuring, business litigation and commercial law. He has represented publicly held corporations, privately owned companies and individuals as debtors and debtors-in-possession in cases under Chapters 11, 7 and 13 of the Bankruptcy Code for more than 25 years. He has been involved in every phase of liquidation and reorganization cases and has also represented debtors and creditors in "pre-packaged" cases under Chapter 11 of the Bankruptcy Code. Bell practices in the areas of bankruptcy and creditors' rights, out-of-court debt restructuring and business litigation. He represents individuals and businesses as debtors in all phases of bankruptcy proceedings under Chapters 7, 11 and 13 of the Bankruptcy Code, and regularly advises clients in connection with out-of-court debt settlements. Recent Fowler White Burnett hires also include associates Marta R. Acosta; Cameron Barnard; Stephanie M. Chaissan; Miguel A. Gonzalez; Lelia M. Menendez; Scott. M. Migliori; Christine M. Walker; and Richard P. Zajac. Alyssa Razook Wan, previously with the firm's Commercial Litigation Practice Group, has re-joined the firm after receiving her LL.M. in Taxation. Razook Wan is the fourth member of the international tax group who holds the LL.M. degree. The new hires will add expertise to Fowler White Burnett's commercial litigation, maritime, tax and insurance defense/casualty practice groups. To meet the growing demands of international investors, Fowler White Burnett has expanded its international tax practice, headed by firm shareholder Richard J. Razook, who has over 35 years of experience in international business and investments. He is joined in the practice by attorneys Howard W. Gordon, Alyssa Razook Wan and Leticia Vega. The International Practice Group is a multi-disciplinary team comprising attorneys in practices ranging from real estate to international wealth management. The Firm's Environmental and Land Use Practice Group, headed by Edward J. Briscoe and Howard E. Fox, works on behalf of numerous clients to help them obtain governmental approvals and maintain regulatory compliance for projects and facilities of all types - including industrial and manufacturing facilities; residential, commercial and mixed-use developments; oil and gas projects, refineries, renewable energy projects; infrastructure such as highways, ports, airports, and transit; schools, hospitals and research & development facilities; water systems and flood control projects; solid waste, composting, and recycling facilities; and telecommunications and utility projects. The team has experience dealing with environmental laws, including those governing air emissions and climate change; water quality and supply; wetlands, mangroves and endangered species; development within a coastal zone; development on state and federal lands; toxic and hazardous substances; environmental investigations and remediation; and energy development. With offices in Miami, Fort Lauderdale and West Palm Beach, and a team of more than 80 attorneys, Fowler White Burnett is a full- service law firm that provides client-focused, proven legal strategies and business solutions to domestic and international clients across a wide spectrum of industries. The firm's deep roster of skilled legal professionals practice in numerous disciplines, including aviation, commercial litigation, bankruptcy and restructuring, maritime, health care, labor and employment, insurance defense, real estate and white collar crime. Fowler White Burnett is the only South Florida member of ALFA International, a global network of 145 independent law firms. Member firms must meet high standards to be part of the ALFA International network and are well respected by their peers in the legal and business communities. About Fowler White Burnett, P.A. Law firm Fowler White Burnett -- http://www.fowler-white.com-- is a nationally-recognized leader in the areas of aviation, maritime and healthcare. The firm's lawyers provide legal counsel in numerous disciplines including litigation, professional malpractice, corporate and securities, commercial finance, restructuring and bankruptcy, real estate, environmental and land use, tax and white collar criminal defense. The firm serves domestic and international clients, ranging from Fortune 500 companies to educational institutions. * Large Companies With Insolvent Balance Sheets ----------------------------------------------- Total Share- Total Total Holders' Working Assets Equity Capital Company Ticker ($MM) ($MM) ($MM) ------- ------ ------ -------- ------- ABSOLUTE SOFTWRE ABT CN 129.8 (11.3) (10.7) ABSOLUTE SOFTWRE ALSWF US 129.8 (11.3) (10.7) ABSOLUTE SOFTWRE OU1 GR 129.8 (11.3) (10.7) ACCELERON PHARMA 0A3 GR 48.4 (19.9) 6.2 ACCELERON PHARMA XLRN US 48.4 (19.9) 6.2 ADVANCED EMISSIO OXQ1 GR 106.4 (46.1) (15.3) ADVANCED EMISSIO ADES US 106.4 (46.1) (15.3) ADVENT SOFTWARE ADVS US 454.9 (133.8) (83.4) ADVENT SOFTWARE AXQ GR 454.9 (133.8) (83.4) AERIE PHARMACEUT AERI US 7.2 (22.4) (11.0) AIR CANADA-CL A AIDIF US 9,481.0 (3,056.0) 105.0 AIR CANADA-CL A ADH GR 9,481.0 (3,056.0) 105.0 AIR CANADA-CL A AC/A CN 9,481.0 (3,056.0) 105.0 AIR CANADA-CL A ADH TH 9,481.0 (3,056.0) 105.0 AIR CANADA-CL B ADH1 GR 9,481.0 (3,056.0) 105.0 AIR CANADA-CL B AIDEF US 9,481.0 (3,056.0) 105.0 AIR CANADA-CL B AC/B CN 9,481.0 (3,056.0) 105.0 AIR CANADA-CL B ADH1 TH 9,481.0 (3,056.0) 105.0 AK STEEL HLDG AK2 TH 3,766.4 (211.8) 394.9 AK STEEL HLDG AKS* MM 3,766.4 (211.8) 394.9 AK STEEL HLDG AKS US 3,766.4 (211.8) 394.9 AK STEEL HLDG AK2 GR 3,766.4 (211.8) 394.9 ALLIANCE HEALTHC AIQ US 515.6 (131.4) 61.3 AMC NETWORKS-A 9AC GR 2,524.8 (611.9) 790.3 AMC NETWORKS-A AMCX US 2,524.8 (611.9) 790.3 AMER AXLE & MFG AYA GR 3,118.5 (46.8) 387.6 AMER AXLE & MFG AXL US 3,118.5 (46.8) 387.6 AMR CORP AAMRQ* MM 26,780.0 (7,922.0) 143.0 AMR CORP ACP GR 26,780.0 (7,922.0) 143.0 AMR CORP AAMRQ US 26,780.0 (7,922.0) 143.0 AMYLIN PHARMACEU AMLN US 1,998.7 (42.4) 263.0 ANACOR PHARMACEU ANAC US 44.9 (7.3) 17.0 ANACOR PHARMACEU 44A TH 44.9 (7.3) 17.0 ANACOR PHARMACEU 44A GR 44.9 (7.3) 17.0 ANGIE'S LIST INC 8AL GR 109.7 (23.0) (24.2) ANGIE'S LIST INC 8AL TH 109.7 (23.0) (24.2) ANGIE'S LIST INC ANGI US 109.7 (23.0) (24.2) ARRAY BIOPHARMA AR2 TH 152.6 (13.2) 82.3 ARRAY BIOPHARMA AR2 GR 152.6 (13.2) 82.3 ARRAY BIOPHARMA ARRY US 152.6 (13.2) 82.3 AUTOZONE INC AZO US 6,892.1 (1,687.3) (891.1) AUTOZONE INC AZ5 TH 6,892.1 (1,687.3) (891.1) AUTOZONE INC AZ5 GR 6,892.1 (1,687.3) (891.1) BARRACUDA NETWOR CUDA US 236.2 (90.1) (66.5) BARRACUDA NETWOR 7BM GR 236.2 (90.1) (66.5) BENEFITFOCUS INC BNFT US 54.8 (43.9) (3.6) BENEFITFOCUS INC BTF GR 54.8 (43.9) (3.6) BERRY PLASTICS G BERY US 5,135.0 (196.0) (3,393.0) BERRY PLASTICS G BP0 GR 5,135.0 (196.0) (3,393.0) BOSTON PIZZA R-U BPF-U CN 156.7 (108.0) (4.2) BOSTON PIZZA R-U BPZZF US 156.7 (108.0) (4.2) BRP INC/CA-SUB V BRPIF US 1,779.0 (131.6) 51.1 BRP INC/CA-SUB V DOO CN 1,779.0 (131.6) 51.1 BRP INC/CA-SUB V B15A GR 1,779.0 (131.6) 51.1 BURLINGTON STORE BUI GR 2,594.2 (421.3) 139.7 BURLINGTON STORE BURL US 2,594.2 (421.3) 139.7 CABLEVISION SY-A CVC US 6,482.1 (5,284.1) 342.2 CABLEVISION SY-A CVY GR 6,482.1 (5,284.1) 342.2 CAESARS ENTERTAI C08 GR 26,096.4 (1,496.8) 626.7 CAESARS ENTERTAI CZR US 26,096.4 (1,496.8) 626.7 CANNAVEST CORP CANV US 10.7 (0.2) (1.3) CAPMARK FINANCIA CPMK US 20,085.1 (933.1) - CC MEDIA-A CCMO US 15,231.2 (8,370.8) 786.9 CENTENNIAL COMM CYCL US 1,480.9 (925.9) (52.1) CENVEO INC CVO US 1,238.5 (473.0) 143.1 CHOICE HOTELS CHH US 555.7 (484.7) 79.2 CHOICE HOTELS CZH GR 555.7 (484.7) 79.2 CIENA CORP CIE1 TH 1,727.4 (83.2) 763.4 CIENA CORP CIE1 GR 1,727.4 (83.2) 763.4 CIENA CORP CIEN US 1,727.4 (83.2) 763.4 CIENA CORP CIEN TE 1,727.4 (83.2) 763.4 CINCINNATI BELL CBB US 2,551.7 (687.2) (147.2) COMVERSE INC CNSI US 844.8 (9.4) (6.1) COMVERSE INC CM1 GR 844.8 (9.4) (6.1) DENDREON CORP DNDN US 522.1 (161.2) 207.0 DIRECTV DTV CI 20,588.0 (6,208.0) (300.0) DIRECTV DIG1 GR 20,588.0 (6,208.0) (300.0) DIRECTV DTV US 20,588.0 (6,208.0) (300.0) DOMINO'S PIZZA EZV GR 468.5 (1,322.2) 76.9 DOMINO'S PIZZA EZV TH 468.5 (1,322.2) 76.9 DOMINO'S PIZZA DPZ US 468.5 (1,322.2) 76.9 DUN & BRADSTREET DB5 TH 1,849.9 (1,206.3) (128.9) DUN & BRADSTREET DB5 GR 1,849.9 (1,206.3) (128.9) DUN & BRADSTREET DNB US 1,849.9 (1,206.3) (128.9) DYAX CORP DY8 GR 70.6 (38.8) 41.0 DYAX CORP DYAX US 70.6 (38.8) 41.0 EASTMAN KODAK CO KODN GR 3,815.0 (3,153.0) (785.0) EASTMAN KODAK CO KODK US 3,815.0 (3,153.0) (785.0) ENTRAVISION CO-A EV9 GR 455.7 (5.6) 78.1 ENTRAVISION CO-A EVC US 455.7 (5.6) 78.1 EVERYWARE GLOBAL EVRY US 356.6 (53.9) 142.5 FAIRPOINT COMMUN FRP US 1,592.6 (406.7) 30.0 FERRELLGAS-LP FEG GR 1,356.0 (86.6) (21.3) FERRELLGAS-LP FGP US 1,356.0 (86.6) (21.3) FIFTH & PACIFIC LIZ GR 846.2 (213.7) (64.6) FIFTH & PACIFIC FNP US 846.2 (213.7) (64.6) FOREST OIL CORP FST US 1,909.3 (63.1) (148.3) FREESCALE SEMICO 1FS TH 3,819.0 (4,526.0) 1,239.0 FREESCALE SEMICO 1FS GR 3,819.0 (4,526.0) 1,239.0 FREESCALE SEMICO FSL US 3,819.0 (4,526.0) 1,239.0 GENCORP INC GCY GR 1,750.4 (142.6) 111.1 GENCORP INC GY US 1,750.4 (142.6) 111.1 GLG PARTNERS INC GLG US 400.0 (285.6) 156.9 GLG PARTNERS-UTS GLG/U US 400.0 (285.6) 156.9 GLOBAL BRASS & C BRSS US 576.5 (37.0) 286.9 GLOBAL BRASS & C 6GB GR 576.5 (37.0) 286.9 GOLD RESERVE INC GDRZF US 23.7 (0.1) (17.3) GOLD RESERVE INC GRZ CN 23.7 (0.1) (17.3) GRAHAM PACKAGING GRM US 2,947.5 (520.8) 298.5 HALOZYME THERAPE HALO US 110.1 (3.5) 63.2 HALOZYME THERAPE HALOZ GR 110.1 (3.5) 63.2 HCA HOLDINGS INC 2BH TH 28,393.0 (7,044.0) 2,352.0 HCA HOLDINGS INC 2BH GR 28,393.0 (7,044.0) 2,352.0 HCA HOLDINGS INC HCA US 28,393.0 (7,044.0) 2,352.0 HD SUPPLY HOLDIN HDS US 6,587.0 (753.0) 1,281.0 HD SUPPLY HOLDIN 5HD GR 6,587.0 (753.0) 1,281.0 HOVNANIAN ENT-A HOV US 1,664.1 (467.2) 950.2 HOVNANIAN ENT-A HO3 GR 1,664.1 (467.2) 950.2 HOVNANIAN ENT-B HOVVB US 1,664.1 (467.2) 950.2 HUGHES TELEMATIC HUTC US 110.2 (101.6) (113.8) HUGHES TELEMATIC HUTCU US 110.2 (101.6) (113.8) IMMUNE PHARMACEU IMNP SS 1.0 (16.2) (8.9) IMMUNE PHARMACEU EPCTSEK EU 1.0 (16.2) (8.9) IMMUNE PHARMACEU IMNP TQ 1.0 (16.2) (8.9) IMMUNE PHARMACEU IMNP BY 1.0 (16.2) (8.9) INFOR US INC LWSN US 6,515.2 (555.7) (303.6) INSYS THERAPEUTI NPR1 GR 22.2 (63.5) (70.0) INSYS THERAPEUTI INSY US 22.2 (63.5) (70.0) IPCS INC IPCS US 559.2 (33.0) 72.1 ISTA PHARMACEUTI ISTA US 124.7 (64.8) 2.2 JUST ENERGY GROU JE CN 1,533.5 (359.8) (281.4) JUST ENERGY GROU JE US 1,533.5 (359.8) (281.4) JUST ENERGY GROU 1JE GR 1,533.5 (359.8) (281.4) L BRANDS INC LTD GR 6,072.0 (861.0) 613.0 L BRANDS INC LB US 6,072.0 (861.0) 613.0 L BRANDS INC LTD TH 6,072.0 (861.0) 613.0 LDR HOLDING CORP LDRH US 78.7 (0.6) 9.6 LEE ENTERPRISES LEE US 989.0 (102.6) (11.9) LORILLARD INC LO US 3,555.0 (2,042.0) 1,297.0 LORILLARD INC LLV GR 3,555.0 (2,042.0) 1,297.0 LORILLARD INC LLV TH 3,555.0 (2,042.0) 1,297.0 MACROGENICS INC M55 GR 42.2 (10.9) 9.9 MACROGENICS INC MGNX US 42.2 (10.9) 9.9 MANNKIND CORP NNF1 TH 287.6 (167.7) (138.5) MANNKIND CORP NNF1 GR 287.6 (167.7) (138.5) MANNKIND CORP MNKD US 287.6 (167.7) (138.5) MARRIOTT INTL-A MAR US 6,480.0 (1,409.0) (776.0) MARRIOTT INTL-A MAQ TH 6,480.0 (1,409.0) (776.0) MARRIOTT INTL-A MAQ GR 6,480.0 (1,409.0) (776.0) MARRONE BIO INNO MBII US 25.6 (47.8) (12.8) MDC PARTNERS-A MDZ/A CN 1,365.7 (40.1) (211.1) MDC PARTNERS-A MDCA US 1,365.7 (40.1) (211.1) MDC PARTNERS-A MD7A GR 1,365.7 (40.1) (211.1) MEDIA GENERAL MEG US 749.9 (217.2) 36.8 MERITOR INC AID1 GR 2,570.0 (822.0) 338.0 MERITOR INC MTOR US 2,570.0 (822.0) 338.0 MERRIMACK PHARMA MACK US 224.2 (16.6) 139.4 MERRIMACK PHARMA MP6 GR 224.2 (16.6) 139.4 MIRATI THERAPEUT MRTX US 18.0 (23.6) (24.5) MONEYGRAM INTERN MGI US 4,923.2 (116.3) 49.2 MORGANS HOTEL GR M1U GR 572.8 (172.9) 6.5 MORGANS HOTEL GR MHGC US 572.8 (172.9) 6.5 MPG OFFICE TRUST MPG US 1,280.0 (437.3) - NATIONAL CINEMED NCMI US 982.5 (217.5) 139.1 NATIONAL CINEMED XWM GR 982.5 (217.5) 139.1 NAVISTAR INTL IHR GR 8,241.0 (3,933.0) 1,329.0 NAVISTAR INTL IHR TH 8,241.0 (3,933.0) 1,329.0 NAVISTAR INTL NAV US 8,241.0 (3,933.0) 1,329.0 NEKTAR THERAPEUT ITH GR 383.0 (50.3) 127.0 NEKTAR THERAPEUT NKTR US 383.0 (50.3) 127.0 NORCRAFT COS INC NCFT US 265.0 (6.1) 47.7 NORCRAFT COS INC 6NC GR 265.0 (6.1) 47.7 NORTHWEST BIO NWBO US 2.4 (16.2) (16.3) NYMOX PHARMACEUT NYMX US 1.4 (6.9) (2.7) NYMOX PHARMACEUT NY2 GR 1.4 (6.9) (2.7) OCI PARTNERS LP OCIP US 460.3 (98.7) 79.8 OMEROS CORP OMER US 12.0 (23.9) (1.6) OMEROS CORP 3O8 GR 12.0 (23.9) (1.6) OMTHERA PHARMACE OMTH US 18.3 (8.5) (12.0) OPHTHTECH CORP OPHT US 40.2 (7.3) 34.3 OPHTHTECH CORP O2T GR 40.2 (7.3) 34.3 PALM INC PALM US 1,007.2 (6.2) 141.7 PHILIP MORRIS IN PM US 36,795.0 (5,908.0) (2.0) PHILIP MORRIS IN PMI SW 36,795.0 (5,908.0) (2.0) PHILIP MORRIS IN PM1CHF EU 36,795.0 (5,908.0) (2.0) PHILIP MORRIS IN PM FP 36,795.0 (5,908.0) (2.0) PHILIP MORRIS IN 4I1 TH 36,795.0 (5,908.0) (2.0) PHILIP MORRIS IN PM1 TE 36,795.0 (5,908.0) (2.0) PHILIP MORRIS IN 4I1 GR 36,795.0 (5,908.0) (2.0) PHILIP MORRIS IN PM1EUR EU 36,795.0 (5,908.0) (2.0) PLAYBOY ENTERP-A PLA/A US 165.8 (54.4) (16.9) PLAYBOY ENTERP-B PLA US 165.8 (54.4) (16.9) PLY GEM HOLDINGS PGEM US 1,088.3 (37.7) 212.1 PLY GEM HOLDINGS PG6 GR 1,088.3 (37.7) 212.1 PROTALEX INC PRTX US 2.0 (7.6) (0.5) PROTECTION ONE PONE US 562.9 (61.8) (7.6) QUALITY DISTRIBU QLTY US 465.1 (38.1) 92.3 QUICKSILVER RES KWK US 1,331.6 (964.5) 234.3 QUINTILES TRANSN QTS GR 2,842.0 (712.0) 382.8 QUINTILES TRANSN Q US 2,842.0 (712.0) 382.8 RE/MAX HOLDINGS 2RM GR 252.0 (22.5) 39.1 RE/MAX HOLDINGS RMAX US 252.0 (22.5) 39.1 REGAL ENTERTAI-A RGC US 2,508.3 (658.5) 54.0 REGAL ENTERTAI-A RETA GR 2,508.3 (658.5) 54.0 RENAISSANCE LEA RLRN US 57.0 (28.2) (31.4) RENTPATH INC PRM US 208.0 (91.7) 3.6 RETROPHIN INC RTRX US 2.7 (8.5) (10.7) REVLON INC-A RVL1 GR 1,259.4 (619.8) 192.4 REVLON INC-A REV US 1,259.4 (619.8) 192.4 RINGCENTRAL IN-A RNG US 48.5 (20.7) (22.8) RINGCENTRAL IN-A 3RCA GR 48.5 (20.7) (22.8) RITE AID CORP RTA GR 7,169.0 (2,317.9) 1,943.6 RITE AID CORP RAD US 7,169.0 (2,317.9) 1,943.6 RURAL/METRO CORP RURL US 303.7 (92.1) 72.4 SALLY BEAUTY HOL SBH US 1,950.1 (303.5) 473.2 SALLY BEAUTY HOL S7V GR 1,950.1 (303.5) 473.2 SILVER SPRING NE 9SI TH 513.9 (88.9) 76.3 SILVER SPRING NE 9SI GR 513.9 (88.9) 76.3 SILVER SPRING NE SSNI US 513.9 (88.9) 76.3 SUNESIS PHARMAC RYIN TH 46.6 (5.8) 11.2 SUNESIS PHARMAC SNSS US 46.6 (5.8) 11.2 SUNESIS PHARMAC RYIN GR 46.6 (5.8) 11.2 SUNGAME CORP SGMZ US 0.1 (2.2) (2.3) SUPERVALU INC SJ1 TH 4,738.0 (1,031.0) 154.0 SUPERVALU INC SVU* MM 4,738.0 (1,031.0) 154.0 SUPERVALU INC SJ1 GR 4,738.0 (1,031.0) 154.0 SUPERVALU INC SVU US 4,738.0 (1,031.0) 154.0 TANDEM DIABETES TD5 GR 48.6 (2.8) 13.8 TANDEM DIABETES TNDM US 48.6 (2.8) 13.8 TAUBMAN CENTERS TU8 GR 3,438.8 (211.5) - TAUBMAN CENTERS TCO US 3,438.8 (211.5) - THRESHOLD PHARMA THLD US 101.0 (17.5) 74.4 THRESHOLD PHARMA NZW1 GR 101.0 (17.5) 74.4 TOWN SPORTS INTE T3D GR 408.9 (40.4) (3.9) TOWN SPORTS INTE CLUB US 408.9 (40.4) (3.9) TRANSDIGM GROUP TDG US 6,148.9 (336.4) 998.0 TRANSDIGM GROUP T7D GR 6,148.9 (336.4) 998.0 ULTRA PETROLEUM UPL US 2,069.0 (376.8) (243.9) ULTRA PETROLEUM UPM GR 2,069.0 (376.8) (243.9) UNISYS CORP UIS US 2,237.7 (1,509.9) 411.6 UNISYS CORP UIS1 SW 2,237.7 (1,509.9) 411.6 UNISYS CORP UISCHF EU 2,237.7 (1,509.9) 411.6 UNISYS CORP UISEUR EU 2,237.7 (1,509.9) 411.6 UNISYS CORP USY1 GR 2,237.7 (1,509.9) 411.6 UNISYS CORP USY1 TH 2,237.7 (1,509.9) 411.6 VECTOR GROUP LTD VGR US 1,121.0 (192.6) 316.7 VECTOR GROUP LTD VGR GR 1,121.0 (192.6) 316.7 VENOCO INC VQ US 695.2 (258.7) (39.2) VERISIGN INC VRSN US 2,330.0 (493.8) 97.7 VERISIGN INC VRS TH 2,330.0 (493.8) 97.7 VERISIGN INC VRS GR 2,330.0 (493.8) 97.7 VINCE HOLDING CO VNCE US 467.8 (179.1) 7.7 VIRGIN MOBILE-A VM US 307.4 (244.2) (138.3) WEIGHT WATCHERS WTW US 1,408.2 (1,509.4) (79.8) WEIGHT WATCHERS WW6 GR 1,408.2 (1,509.4) (79.8) WEST CORP WT2 GR 3,480.7 (782.6) 349.0 WEST CORP WSTC US 3,480.7 (782.6) 349.0 WESTMORELAND COA WLB US 939.8 (280.3) 4.1 WESTMORELAND COA WME GR 939.8 (280.3) 4.1 XERIUM TECHNOLOG XRM US 626.9 (25.4) 128.4 XERIUM TECHNOLOG TXRN GR 626.9 (25.4) 128.4 XOMA CORP XOMA US 91.0 (13.5) 58.8 XOMA CORP XOMA GR 91.0 (13.5) 58.8 XOMA CORP XOMA TH 91.0 (13.5) 58.8 ZOGENIX INC ZGNX US 54.6 (13.9) 3.1 ********* 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 by e-mail. 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 the nation's bankruptcy courts. The list includes links to freely downloadable of these small-dollar petitions in Acrobat PDF documents. 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. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA. Jhonas Dampog, Marites Claro, Joy Agravante, Rousel Elaine Tumanda, Valerie Udtuhan, Howard C. Tolentino, Carmel Paderog, Meriam Fernandez, Joel Anthony G. Lopez, Cecil R. Villacampa, Sheryl Joy P. Olano, Ivy B. Magdadaro, Carlo Fernandez, Christopher G. Patalinghug, and Peter A. Chapman, Editors. Copyright 2014. 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 ***