/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/140326.mbx T R O U B L E D C O M P A N Y R E P O R T E R Wednesday, March 26, 2014, Vol. 18, No. 84 Headlines 1139 CLAY AVENUE: Voluntary Chapter 11 Case Summary 22ND CENTURY: Approved to List Common Stock on NYSE MKT 30DC INC: Expands MagCast Android Beta Trial ACCESS MIDSTREAM: S&P Revises Outlook to Pos. & Affirms 'BB' CCR ACEMLA DE PUERTO RICO: Case Summary & 13 Top Unsecured Creditors ADVANCED MICRO: Plans to Offer $500 Million of Senior Notes AEMETIS INC: To Issue 6 Million Shares Under Plans ALLIED INDUSTRIES: Hires RLS Inc. as Appraiser ALLIED INDUSTRIES: Taps DMA as Business Valuation Appraiser AMERICAN APPAREL: VP of Finance and Controller Resigns AMERICAN TITLE: Title Resources' Suit Stayed Following Bankruptcy ARICENT TECHNOLOGIES: Moody's Assigns B2 Corporate Family Rating ASR CONSTRUCTORS: Plan Exclusivity Period Extended Until April 21 ATP OIL: Omega Awarded $649,026 Admin Expense Claim BAY CITY SHOVELS: Voluntary Chapter 11 Case Summary BENTLEY PREMIER: Chapter 11 Trustee, Lenders Oppose Golgart Plan BENTLEY PREMIER: Golgart Opposes Confirmation of Pourchot Plan BETSEY JOHNSON: Marcum Accountants to Render Expanded Services BLACK DIAMOND MINING: Jones Day Must Produce Records BON-TON STORES: James Berylson Stake at 5.1% as of Feb. 13 BONDS.COM GROUP: To Be Acquired by MTS C&K MARKET: US Trustee Amends Creditors Panel CAMCO FINANCIAL: Huntington Bancshares Acquires Advantage Bank CAMCO FINANCIAL: Stockholders Approve Merger with Huntington CANCER GENETICS: Paul Rothman Named to Board of Directors CASH STORE: Special Committee Formed to Review Alternatives CHECKER MOTORS: Interlocutory Appeal on Pension Liability Barred CHESAPEAKE ENERGY: Sees Possible Spinoff of Oilfield Services CLEAR CHANNEL: Incurs $606.8 Million Net Loss in 2013 COLONY BEACH: Court Denies Confirmation of Joint Plan COMMUNITYONE BANCORP: Incurs $1.5 Million Net Loss in 2013 CONSTAR INTERNATIONAL: Supplemental Asset Sale Order Approved CUE & LOPEZ: Oriental Bank Asks Court to Appoint Examiner CUE & LOPEZ: Oriental Bank Wants to Bar Use of Cash Collateral CUMULUS MEDIA: Ares Mgt. Owned 7% of Class A Shares at Feb. 20 DELPHI AUTOMOTIVE: May Be Dragged in GM Recall Issue DEMCO INC: Creditors' Panel Taps Amigone Sanchez as Counsel DENHAM HOMES: Ill. Judge Rules on Appeal Over Case Dismissal DETROIT, MI: Area Water Authority Talks Hit Cutoff DETROIT, MI: Asks U.S. Court to Consolidate Bankruptcy Appeals DETROIT, MI: Bankruptcy Means Long Waits for Bus Riders DIOCESE OF HELENA: Taps Michael Hogan as Victims Representative DUNE ENERGY: Incurs $46.9 Million Net Loss in 2013 E3 BIOFUELS: Suit Over Ruinous Blast Found Time-Barred EDISON MISSION: Withdraws Motion to Estimate EIX Disputed Claims EDWIN WATTS GOLF: Seeks Until June 2 to File Exit Plan ELBIT IMAGING: Consummates Debt Restructuring ELBIT IMAGING: Court Rejects Liquidation Request ENNIS COMMERCIAL: Colliers Tingey Okayed as Real Estate Broker ENNIS COMMERCIAL: Loeb Okayed as Plan Administrator's Tax Counsel ENNIS COMMERCIAL: Plan Administrator May Sell Belridge Property ENOVA SYSTEMS: To Sell 7 Million Common Shares to CEO EXPERT GLOBAL: May Need to Modify Loan Deals, Says Moody's FAIRMONT GENERAL: Hires Pachulski to Advise on Medicare Claims FILENE'S BASEMENT: Hartz Mountain Strikes Deal to Purchase HQ FIRST MARINER: Obtains Interim OK for Equity Transfer Procedures FREE LANCE-STAR: Panel Hires Hunton & Williams as Counsel FREEDOM INDUSTRIES: Pres. Wants Pay for Work Since Filing FREEDOM INDUSTRIES: Court Approves Frost Brown as Panel's Counsel FREEDOM INDUSTRIES: CRO Says Funds Could Be Down to $3MM by June GARLOCK SEALING: Ford Seeks Info to Fight Its Own Asbestos Suits GENERAL MOTORS: Reports 3 More Recalls, "Redoubles" Safety Efforts GULF FLEET: Trustee May Recoup $166,625 From Candy Fleet GULF FLEET: May Avoid $117,519 in Transfers to Adriatic Marine GULF FLEET: Trustee May Recoup $64,172 From Reama HAAS ENVIRONMENTAL: Can Access Cash Collateral Until May 31 HANGER INC: Has Until September 17 to File Form 10-K with SEC HECLA MINING: Moody's Lowers CFR to 'B2'; Outlook Negative HERCULES OFFSHORE: Board Approves Salary Increase for Executives HERCULES OFFSHORE: Files Fleet Status Report as of Feb. 19 HIBU INC: Yellow-Page Publisher Closing U.S. Proceedings HOVNANIAN ENTERPRISES: Incurs $24.5MM Net Loss in Jan. 31 Qtr. HORIZON LINES: Settles Qui Tam Complaint in Florida HUNTER DEFENSE: S&P Lowers CCR to 'CCC' on Debt Maturity Concerns ICEF-VIEW PARK: S&P Assigns 'BB' Rating to Facility Revenue Bonds ID PERFUMES: Files Copy of License Agreement with Kendall Jenner INDYMAC BANCORP: 9th Circ. Won't Nix Arguments in $80M D&O Row INFINITY ENERGY: Extends Maturity of Note to May 11 INFOGROUP INC: Moody's Lowers Corporate Family Rating to B3 INNOVATIVE COMMS: Plan Trustee's Avoidance Suit Not Time-Barred INSTRUMENTATION AND CONTROLS: Court Rules in Avoidance Suit INTERNATIONAL TEXTILE: Court Partially OKs Lawsuit Settlement INTEGRATED HEALTHCARE: Silver Point Stake at 27.3% as of Feb. 19 ISTAR FINANCIAL: Incurs $57.9 Million Net Loss in 4th Quarter ISTAR FINANCIAL: BlackRock Stake at 10.9% as of Dec. 31 JACKSON HEWITT: New Jersey Court Narrows FasTax Suit JAMES C. SCHLEHUBER: 8th Cir. Affirms Conversion to Chapter 11 JAMES RIVER: Gets NASDAQ Listing Non-Compliance Notice JONES ENERGY: Moody's Assigns 'B2' CFR & Rates $300MM Notes 'B3' JONES ENERGY: S&P Assigns 'B' CCR & Rates $300MM Sr. Notes 'B-' KCG HOLDINGS: Moody's Affirms 'B1' Corporate Family Rating KIDSPEACE CORP: Lease Decision Period Extended Thru April KOO YUEN LIFE: Case Summary and 3 Largest Unsecured Creditors LANTHEUS MEDICAL: Moody's Affirms 'Caa2' CFR; Outlook Positive LCI HOLDING: 'Gift' Settlement Can Bypass Claim Priority Rules LIGHTSQUARED INC: Director Says Exit Plan Is Fair To Dish Chair LIME ENERGY: To Hold "Say-on-Pay" Votes Every Three Years LONESTAR RESOURCES: S&P Gives 'B-' CCR & Rates $200MM Notes 'CCC+' LOS ANGELES DODGERS: Are Dismissed from Bankruptcy Court MCC FUNDING: Voluntary Chapter 11 Case Summary MCCLATCHY CO: Posts $18.8 Million Fiscal 2013 Net Income MEDIA GENERAL: Reports $4.3 Million 2013 Net Income METRO AFFILIATES: Claims Bar Date Set for April 21 MF GLOBAL: SIPA Trustee Must Disclose Non-Attorney Fees & Costs MF GLOBAL: Customers One Step Closer to Getting Paid in Full MI PUEBLO: Can Hire Perkins Coie to Advise on Financing Matters MMRGLOBAL INC: Unit Inks Settlement Agreement with Walgreens MOBIVITY HOLDINGS: Amends Letter of Intent with Smart Receipt MONTREAL MAINE: Wrongful-Death Lawyers Barred from Case MORGANS HOTEL: Ronald Burkle Stake at 27.2% as of Feb. 28 MT. GOX: Allows Customers to View Account Balances NAVISTAR INTERNATIONAL: BNY Mellon No Longer Owns Pref. Shares NELSON CHATELAIN: Judgment Against Huntsville Golf Affirmed NEW LEAF BRANDS: H J & Assoc. Replaces EisnerAmper as Accountants NEWLEAD HOLDINGS: Perian Salviola Stake at 18.3% as of Feb. 28 NEWLEAD HOLDINGS: Mantangi Irrevocable Stake at 9.2% as of Dec. 31 NORTHERN MARIANA CPA: Fitch Keeps $13MM Airport Bonds' B- Rating NORTHERN MARIANA CPA: Fitch Keeps $30MM Seaport Bonds' BB- Rating NUVILEX INC: Fully Pays Licensing Obligations to Austrianova ORCKIT COMMUNICATIONS: Court Denies Request to Stay Proceedings PACIFIC GOLD: Amends Option and Asset Sale Pact with Pilot Metals PAUL CAPITAL: Is Winding Down After Sale Collapses PLUG POWER: Offering $22.4 Million Common Shares PRESSURE BIOSCIENCES: Obtains $630,380 From Private Placement PRICHARD, AL: Bankruptcy-Exit Plan Heads to Retirees for Vote PROLOGIS INC: S&P Raises Preferred Stock Rating From 'BB+' QUANTUM FUEL: Obtains $15.3 Million From Securities Offering QUIZNOS CORP: Joint Plan & Disclosures Hearing Set for April 25 QUIZNOS CORP: Seeks to Assume Restructuring Support Agreement QUIZNOS CORP: Has Interim Authority to Tap $10MM in DIP Loans QUIZNOS CORP: To Honor Gift Cards and Groupons REEVES DEVELOPMENT: IberiaBank & Reeves Differ on Use of Funds RENAISSANCE LEARNING: S&P Lowers Rating to 'B-'; Outlook Stable RENTAL SYSTEMS: Court Rejects Neal Wolf Employment ROBERT J PETILLO: Case Summary and 12 Largest Unsecured Creditors ROYCE HOMES: Jury Deadlocks In Fraud Suit Against CEO SAINT VINCENTS CATHOLIC: Claimant's Lawyer Facing Sanctions SALANDER-O'REILLY: Dispute Over Madonna and Child Goes to Trial SEANERGY MARITIME: Reports $17.1 Million Net Income in Q3 2013 SEARS HOLDINGS: S&P Affirms 'CCC+' CCR & Removes From CreditWatch SEQUENOM INC: Board Approves Salary Increases for Executives SHOTWELL LANDFILL: U.S. Trustee Appoints 6-Member Creditors Panel SPENDSMART PAYMENTS: Alex Minicucci Stake at 24.8% as of Feb. 11 STANADYNE HOLDINGS: Has $6MM Term Loan Agreement with Kohlberg SUMMIT III: Avoidance Suit v. Craig Duet Survives Dismissal Bid SUNTECH POWER: Solyndra Fights Bid for Ch. 15 Protection TEAM NATION: Seeks to Cancel Unauthorized Certificates TLC HEALTH: Can Employ Cash Realty & Auctions as Appraisers TRANSGENOMIC INC: Randal Kirk Stake at 37.2% as of March 5 UNITED AIRLINES: Fitch Assigns 'B' Rating to 2014-1 Class A Certs U.S. RENAL: Moody's Rates $225MM First Lien Term Debt 'Ba3' VERMILLION INC: Reports $1.8 Million Fourth Quarter Net Loss VHGI HOLDINGS: Chief Financial Officer Resigned VIGGLE INC: Maturity of Deutsche Bank Facility Moved to Dec. 31 VISCOUNT SYSTEMS: Appoints New President, CEO, and Chairman VUZIX CORP: Receives $1.1 Million From Warrants Exercise VERITY CORP: Incurs $461,000 Net Loss in Dec. 31 Quarter WEST CORP: Reports $143.2 Million Net Income in 2013 WEST TEXAS GUAR: Objects to Bid for Trustee Appointment WHEATLAND MARKETPLACE: Wants Extension of Plan Filing Period WORLD PROPERTIES: Voluntary Chapter 11 Case Summary ZALE CORP: Earns $50.7 Million in January 31 Quarter ZOGENIX INC: Reports $80.8 Million 2013 Net Loss * IRS Rips Bankrupt Atty's 'Illegal' Request to Discharge Interest * Lady Gaga Admits Filing for Bankruptcy During Early Career * IMG in No Hurry to Buy Out Brazil's Eike Batista * Financial Firms Are Pressuring Lawmakers over Proposed Bank Tax * Wells Fargo Foreclosure Manual Under Fire * Costly Loans Are Drawing Attention from States * Moody's Says No Increase in Number of Low-Rated Junk Companies * Federal Reserve Officials Weighing How to Retool Rate Guidance * Arkansas Bankruptcy Judge James Mixon Dies at 72 ********* 1139 CLAY AVENUE: Voluntary Chapter 11 Case Summary --------------------------------------------------- Debtor: 1139 Clay Avenue, LLC 1035 Grand Concourse Bronx, NY 10452 Case No.: 14-10763 Chapter 11 Petition Date: March 24, 2014 Court: United States Bankruptcy Court Southern District of New York (Manhattan) Judge: Hon. Robert E. Gerber Debtor's Counsel: Surajudeen Agbaje, Esq. OLA-OLU AGBAJE, P.C. 3550 White Plains Road, Suite 11 Bronx, NY 10467 Tel: (718) 231-1353 Fax: (718) 324-0916 Email: agbajelawPC@aol.com Total Assets: $3 million Total Liabilities: $1.5 million The petition was signed by Abu Olatunji, president. The Debtor did not file a list of its largest unsecured creditors when it filed the petition. 22ND CENTURY: Approved to List Common Stock on NYSE MKT ------------------------------------------------------- 22nd Century Group, Inc., has received approval to list its common stock on the NYSE MKT. Trading on the NYSE MKT is expected to commence on Tuesday, March 11, 2014, under the Company's current symbol, XXII. In connection with this NYSE MKT listing, 22nd Century Group will cease trading on the OTCBB and OTCQB. "The listing of our common stock on NYSE MKT is an important milestone for the Company since many institutional investors and retail brokers looking to build a position in 22nd Century Group stock are not allowed to purchase OTC Bulletin Board stocks," stated Joseph Pandolfino, 22nd Century's Founder and CEO. He added, "22nd Century Group in recent months has implemented important components of its business plan and has delivered strong financial growth, and we anticipate our transition to the NYSE MKT will greatly facilitate continued growth in shareholder value as we meet additional upcoming milestones." "We welcome 22nd Century Group, Inc. to the NYSE MKT's listed company community," said Scott Cutler, executive vice president & head of global listings, NYSE Euronext. "We congratulate 22nd Century Group on its first day of trading on the NYSE MKT and look forward to a long-standing partnership with the company and its shareholders." 22nd Century Group selected Virtu Financial as its Designated Market Maker on the NYSE MKT. 22nd Century Group is currently scheduled to ring the opening bell at the New York Stock Exchange on Tuesday June 17, 2014. For additional information, please visit: www.xxiicentury.com About 22nd Century Clarence, New York-based 22nd Century Group, Inc., through its wholly-owned subsidiary, 22nd Century Ltd, is a plant biotechnology company using technology that allows for the level of nicotine and other nicotinic alkaloids (e.g., nornicotine, anatabine and anabasine) in tobacco plants to be decreased or increased through genetic engineering and plant breeding. 22nd Century reported a net loss of $26.15 million in 2013, a net loss of $6.73 million in 2012 and a net loss of $1.34 million in 2011. As of Dec. 31, 2013, the Company had $12.28 million in total assets, $4.76 million in total liabilities and $7.52 million in total shareholders' equity. Freed Maxick CPAs, P.C., in Buffalo, New York, did not issue a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2013. The accounting firm previously expressed substantial doubt about the Company's ability to continue as a going concern in their audit report on the consolidated financial statements for the year ended Dec. 31, 2012. The independent auditors noted that 22nd Century has suffered recurring losses from operations and as of Dec. 31, 2012, has negative working capital of $3.3 million and a shareholders' deficit of $6.1 million. Additional capital will be required during 2013 in order to satisfy existing current obligations and finance working capital needs as well as additional losses from operations that are expected in 2013, the report added. 30DC INC: Expands MagCast Android Beta Trial -------------------------------------------- 30DC, Inc., is testing an upgrade of the MagCast Digital Publishing Platform that will facilitate the delivery of content in magazine format to Android devices utilizing Google Play Newsstand the Android equivalent of Apple's iOS Newsstand. The current trial expands on 30DC's existing Android beta study, provides for testing and feedback, and includes up to two hundred existing MagCast publications. Android is an open-source software stack for a wide range of mobile devices, with different shapes, screen sizes, performance levels, and different Android versions that are concurrently active at any one time. The MagCast Platform Android edition allows publishers to export their content in two forms, a Full Interactive Version, and a Mobile Optimized Text Version. MagCast's Full Version displays content in an interactive, graphics rich format, providing readers with a highly engaging multimedia experience, and is available for the iPad and now a wide range of Android devices. MagCast's Text Version is scaled back, less graphics-intensive and extends perfectly for Android devices that don't support the Full Version. 30DC believes the MagCast Platform's Text Version will provide a solution to Android fragmentation, while delivering excellent reading experiences to the most diverse range of Android devices, along with the previously accessible iOS iPhone, iPod Touch. Self-publishing using MagCast does not require content creators to know code, have programming experience, and is designed to help save time and make it easy - with a few clicks - to automatically deliver content to an expanded number of mobile devices. The Android version brings the advanced marketing tools of the MagCast iOS to Android, including push notification, list building, digital product development, and eCommerce strategies. 30DC is currently positioning MagCast as a broader communications platform designed for Internet publishers of user-generated content to build market leadership and influence. Almost all MagCast publishers to date launched digital publishing businesses from scratch, with little to no prior magazine experience, technical skills, and limited lists. The platform's true value lies within its business system, which provides comprehensive education, training and support on how to develop a successful mobile-based business. MagCast provides self-publishers with everything needed to successfully make money on Apple Newsstand and now Google Play - from finding niche market ideas, developing a content strategy, using the MagCast platform to create a mobile App and publish on an ongoing basis - to learning how to market, build lists, and develop an audience for the App, and develop digital products that can be distributed via in-App purchases. Other features include integrating web-based e-commerce Web sites to sell digital products online, creating a web-based community, and developing advertising opportunities. In the last 18 months, MagCast has been a top self publishing tool, facilitating the establishment of 820 digital magazines - almost all developed from scratch - not digital replicas of existing publications. 30DC management believes that enabling MagCasters to access the large number of Android users will act as a driver to downloads and increase their potential audience. Subject to the results of the beta trial and any tweaks or corrections necessary, 30DC is expecting to officially launch and make MagCast Android available to the general public in late Spring 2014. About 30DC Inc. New York-based 30DC, Inc., provides Internet marketing services and related training to help Internet companies in operating their businesses. It operates in two divisions, 30 Day Challenge and Immediate Edge. 30DC incurred a net loss of $407,642 on $1.97 million of total revenue for the year ended June 30, 2013, as compared with net income of $32,207 on $2.91 million of total revenue during the prior fiscal year. As of Dec. 31, 2013, the Company had $3.19 million in total assets, $2.02 million in total liabilities and $1.17 million in total stockholders' equity. Marcum 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 a working capital deficit and stockholders' deficiency as of June 30, 2012. These conditions raise substantial doubt about the Company's ability to continue as a going concern. ACCESS MIDSTREAM: S&P Revises Outlook to Pos. & Affirms 'BB' CCR ---------------------------------------------------------------- Standard & Poor's Ratings Services said it revised its rating outlook on Access Midstream Partners to positive from stable. S&P affirmed its 'BB' corporate credit rating on the company. S&P also affirmed the 'BB' issue-level rating on Access' senior unsecured notes. The '4' recovery rating is unchanged. S&P bases the outlook revision on Access' increased size, in addition to slightly improved counterparty risk as a result of CHK's rating outlook revision to positive. The December 2012 acquisition of Chesapeake Midstream Operating LLC (CMO) meaningfully accelerated Access' volume growth and S&P expects the partnership to exceed $1 billion of EBITDA in 2014, up from $350 million just two years ago. Furthermore, Access' 100% fee-based contract structure and total gathering volumes, about 3.7 billion cubic feet per day at year end 2013, compares favorably with peers. "Still, Access' counterparty exposure to CHK, which we estimate will account for about 75% of 2014 cash flow, remains the main credit risk," said Standard & Poor's credit analyst Nora Pickens. The outlook on the rating is positive. Because of Access' significant customer concentration with CHK, any changes to CHK's ratings would cause S&P to reevaluate its ratings on Access. Independent of any potential ratings actions on CHK, it could raise the ratings on Access if the partnership successfully executes its 2014 growth projects while maintaining adequate liquidity and debt to EBITDA below 4x. S&P could revise the outlook to stable if the partnership materially increases leverage such that pro form debt to EBITDA exceeds 4.75x on a sustained basis or if the company begins to assume more significant commodity price risk. ACEMLA DE PUERTO RICO: Case Summary & 13 Top Unsecured Creditors ---------------------------------------------------------------- Debtor: ACEMLA De Puerto Rico, Inc. Box 366714 San Juan, PR 00936-6714 Case No.: 14-02245 Chapter 11 Petition Date: March 24, 2014 Court: United States Bankruptcy Court District of Puerto Rico (Old San Juan) Judge: Hon. Enrique S. Lamoutte Inclan Debtor's Counsel: Gerardo L Santiago Puig SANTIAGO PUIG LAW OFFICES Doral Bank Plaza Suite 801 33 Resolucion St San Juan, PR 00920 Tel: 787-777-8000 Fax: 787-767-7107 Email: gsantiagopuig@gmail.com Estimated Assets: $100,000 to $500,000 Estimated Liabilities: $1 million to $10 million The petition was signed by Raul Bernard, president. A list of the Debtor's 13 largest unsecured creditors is available for free at http://bankrupt.com/misc/prb14-2245.pdf ADVANCED MICRO: Plans to Offer $500 Million of Senior Notes ----------------------------------------------------------- Advanced Micro Devices, Inc., announced on Feb. 20, 2014, that it intends to commence a private offering, subject to market and other conditions, of $500 million aggregate principal amount of senior notes due 2019. AMD intends to use the net proceeds received in the offering to repurchase up to $425 million aggregate principal amount of its outstanding 6.00 percent Convertible Senior Notes due 2015 through a tender offer which was launched on Feb. 20, 2014. AMD intends to use remaining net proceeds to repurchase up to a maximum of $200 million aggregate principal amount of AMD's outstanding 8.125 percent Senior Notes due 2017 through a tender offer which was also launched on Feb. 20, 2014. To the extent he Company will have net proceeds after the completion of the tender offers, it will use those net proceeds to redeem, repurchase or otherwise retire other outstanding debt. Partial Tender Offer for its 6.00 percent Convertible Senior Notes due 2015 Advanced Micro commenced a cash tender offer for up to $425,000,000 in aggregate principal amount of its outstanding 6.00 percent Convertible Senior Notes due 2015. The Company intends to finance the purchase of the Notes tendered in the tender offer with the net proceeds from the closing of the Company's private offering of $500 million of senior notes due 2019. The tender offer will expire at 12:00 midnight, New York City time, on March 19, 2014, unless extended, or earlier terminated by AMD. Holders who validly tender, and do not validly withdraw, their Notes on or prior to the Expiration Date will be entitled to receive $1,065 for each $1,000 principal amount of Notes purchased in the tender offer, plus accrued and unpaid interest to, but not including, the date of payment for the Notes accepted for payment. Tenders of Notes must be made on or prior to the Expiration Date, and Notes may be withdrawn at any time on or prior to the Expiration Date. To the extent that acceptances of all validly tendered Notes would require AMD to purchase more than $425,000,000 in aggregate principal amount of Notes in connection with the tender offer, the Company will allocate acceptances on a pro rata basis among the tendering holders. The tender offer is contingent upon the satisfaction of certain conditions, including the closing of the New Notes Offering, which will be subject to customary closing conditions. The Company has retained BofA Merrill Lynch to act as the Dealer Manager for the tender offer. Questions regarding the tender offer may be directed to BofA Merrill Lynch at (888) 292-0070 (toll-free) or (980) 387-3907 (collect). Requests for the Offer to Purchase and other documents relating to the tender offer may be directed to MacKenzie Partners, Inc., the Information Agent and Depositary in connection with the tender offer, at (800) 322-2885 (toll-free) or (212) 929-5500 (collect). Partial Tender Offer for its 8.125 percent Senior Notes due 2017 Advanced Micro commenced a cash tender offer for an aggregate principal amount of its outstanding 8.125 percent Senior Notes due 2017 such that the aggregate consideration paid (excluding accrued and unpaid interest) does not exceed (i) $490,000,000 less (ii) the aggregate consideration paid or payable (excluding accrued and unpaid interest) by the Company in its concurrent tender offer for its outstanding 6.00 percent Convertible Senior Notes due 2015, which was separately announced by AMD, provided that in no event will AMD purchase more than $200,000,000 aggregate principal amount of Notes. AMD intends to finance the purchase of the Notes tendered in the tender offer with the net proceeds from the closing of AMD's private offering of $500 million of senior notes due 2019, which was also separately announced by AMD. The tender offer will expire at 12:00 midnight, New York City time, on March 19, 2014, unless extended or earlier terminated by AMD. Holders who validly tender, and do not validly withdraw, their Notes on or prior to the Expiration Date will be entitled to receive $1,014.83 for each $1,000 principal amount of Notes purchased in the tender offer, plus accrued and unpaid interest to, but not including, the date of payment for the Notes accepted for payment. Furthermore, holders who validly tender, and do not validly withdraw, their Notes at or prior to 5:00 p.m. New York City time on March 5, 2014, will receive $30.00 for each $1,000 principal amount of Notes purchased pursuant to the tender offer, resulting in a total consideration of $1,044.83 for each $1,000 principal amount of Notes. Tenders of Notes must be made on or prior to the Expiration Date. Notes tendered prior to the Early Tender Time may be withdrawn at any time at or prior to 5:00 p.m. New York City time on March 5, 2014. Notes tendered after that withdrawal deadline may not be withdrawn. To the extent that acceptances of all validly tendered Notes would require AMD to purchase more than the Maximum Amount of Notes in connection with the tender offer, the Company will allocate acceptances on a pro rata basis among the tendering holders. The tender offer is contingent upon the satisfaction of certain conditions, including the closing of New Notes Offering, which will be subject to customary closing conditions. The Company has retained BofA Merrill Lynch to act as the Dealer Manager for the tender offer. Questions regarding the tender offer may be directed to BofA Merrill Lynch at (888) 292-0070 (toll-free) or (980) 387-3907 (collect). Requests for the Offer to Purchase and other documents relating to the tender offer may be directed to MacKenzie Partners, Inc., the Information Agent and Depositary in connection with the tender offer, at (800) 322-2885 (toll-free) or (212) 929-5500 (collect). About Advanced Micro Devices Sunnyvale, California-based Advanced Micro Devices, Inc., is a global semiconductor company. The Company's products include x86 microprocessors and graphics. Advanced Micro incurred a net loss of $83 million on $5.29 billion of net revenue for the year ended Dec. 28, 2013, as compared with a net loss of $1.18 billion on $5.42 billion of net revenue for the year ended Dec. 29, 2012. The Company's balance sheet at Dec. 28, 2013, showed $4.33 billion in total assets, $3.79 billion in total liabilities and $544 million in total stockholders' equity. * * * In August 2013, Standard & Poor's Ratings Services revised its outlook on Advanced Micro to negative from stable. At the same time, S&P affirmed its 'B' corporate credit and senior unsecured debt ratings on AMD. As reported by the TCR on Feb. 4, 2014, Fitch Ratings has affirmed the 'CCC' long-term Issuer Default Rating (IDR) for Advanced Micro Devices Inc. The rating reflects Fitch's expectations for negative near-term free cash flow (FCF) and limited top-line visibility, despite solid product momentum heading into 2014. In the Feb. 4, 2013, edition of the TCR, Moody's Investors Service lowered Advanced Micro Devices' corporate family rating to B2 from B1. The downgrade of the corporate family rating to B2 reflects AMD's prospects for weaker operating performance and liquidity profile over the next year as the company commences on a multi- quarter strategic reorientation of its business in the face of a challenging macro environment and a weak PC market. AEMETIS INC: To Issue 6 Million Shares Under Plans -------------------------------------------------- Aemetis, Inc., filed with the U.S. Securities and Exchange Commission a Form S-8 registration statement to register 519,063 shares of common stock to be issued pursuant to the Zymetis, Inc., 2006 Stock Incentive Plan. A copy of the prospectus is available for free at http://is.gd/s3Ukmk The Company separately registered a total of 5,490,406 common shares issuable under Aemetis, Inc. (formerly AE Biofuels, Inc.) Amended and Restated 2007 Stock Plan. A copy of the prospectus is available for free at http://is.gd/jzms5h About Aemetis Cupertino, Calif.-based Aemetis, Inc., is an international renewable fuels and specialty chemical company focused on the production of advanced fuels and chemicals and the acquisition, development and commercialization of innovative technologies that replace traditional petroleum-based products and convert first- generation ethanol and biodiesel plants into advanced biorefineries. McGladrey LLP, in Des Moines, Iowa, expressed substantial doubt about Aemetis, Inc.'s ability to continue as a going concern following the annual results for the year ended Dec. 31, 2012. The independent auditors noted that the Company has suffered recurring losses from operations and its cash flows from operations are not sufficient to cover debt service requirements. The Company reported a net loss of $4.3 million on $189.0 million of revenues in 2012, compared with a net loss of $18.3 million on $141.9 million of revenues in 2011. The Company's balance sheet at Sept. 30, 2013, showed $93.38 million in total assets, $110.06 million in total liabilities and a $16.68 million total stockholders' deficit. ALLIED INDUSTRIES: Hires RLS Inc. as Appraiser ---------------------------------------------- Allied Industries, Inc. seeks authorization from the Hon. Maureen A. Tighe of the U.S. Bankruptcy Court for the Central District of California to employ RLS, Inc. dba Hjelmstrom & Associates as appraiser of its assets to establish their value for evidence that California United Bank is adequately protected, and to prepare the Debtor's plan of reorganization and disclosure statement. The Debtor also asks the Court to consider the Application immediately to give the appraiser sufficient time to conduct the appraisal and issue within a few weeks instead of this taking over a month on regular notice and then the two weeks to conduct and issue the appraisal. RLSI will document moveable assets located at the properties. Excluded will be all land, building and its mechanical features, personal items, inventory, cash and intangible assets if any. Research and analyze replacement cost new and comparable sales data; apply appropriate depreciation and market influences factors; formulate Orderly Liquidation values, if needed. RLSI also will provide values using appraisal methods and reporting in compliance with the American Society of Appraisers and the Uniform Standards of Professional Appraisal Practices. According to the provisions of the RLSI Agreement, RLSI will cap its fees and out of pocket expenses at $7,000. As of the Petition Date, the Debtor did not owe any money under the RLSI Agreement to RLSI. Under the RLSI Agreement, the Debtor and RLSI agreed that it will represent the Debtor on the following terms: $75 per hour for Appraisal Services, which includes trial preparation; $350 per hour for Mr. Hjelmstrom to be deposed or to testify about his Appraisal Services and any appraisal that RLSI issues; $3,500 for one copy of the appraisal of the Debtor's location at 11333 Vanowen, North Hollywood, CA; and $200 for expenses. The initial expense and fees are estimated at $3,650. Half of this amount, or $1,825, is due when the Court approves the RLSI Agreement. The other half of this amount is due upon delivery of the report. Steven H. Hjelmstrom, owner, principal and chief executive officer of RLSI, 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. RLSI can be reached at: Steven M. Hjelmstro RLS ENTERPRISES, INC. dba HJELMSTROM & ASSOCIATES 25072 Wilkes Place Laguna Hills, CA 92653 Tel: (714) 493-1735 E-mail: hjelmAssoc@aol.com About Allied Industries Allied Industries, Inc., filed a Chapter 11 petition (Bankr. C.D. Cal. Case. No. 13-11948) on March 21, 2013. The petition was signed by Ernesto Gutierrez as president and chief executive officer. The Debtor scheduled assets of $13,086,216 and scheduled liabilities of $7,457,365. Then Debtor has tapped Dheeraj K. Singhal, Esq., and Dixon L. Gardner, Esq. at DCDM Law Group, P.C., as counsel, the Capital Turnaround Group, Inc., as turnaround consultant, and Glenn M. Gelman & Associates as accountants. The Official Committee of Unsecured Creditors has retained Pachulski Stang Ziehl & Jones LLP as counsel and CohnReznick LLP as financial advisor. ALLIED INDUSTRIES: Taps DMA as Business Valuation Appraiser ----------------------------------------------------------- Allied Industries, Inc. seeks authorization from the Hon. Maureen A. Tighe of the U.S. Bankruptcy Court for the Central District of California to employ Desmond, Marcello & Amster as business valuation appraiser of the Debtor as a going-concern business. The Debtor needs this valuation to present evidence that California United Bank is adequately protected and to prepare the Debtor's plan of reorganization and disclosure statement. The Debtor also asks the Court to consider the request on an expedited basis to give the appraiser sufficient time to conduct the appraisal and issue within a few weeks instead of this taking over a month on regular notice and then the two weeks to conduct and issue the appraisal. The firm's hourly rates are: Wesley L. Nutten (appraisal work) $350 Wesley L. Nutten (deposition/trial work) $425 Managers $150-$225 Senior Analysts $125-$150 Staff Analysts $100-$125 Clerical Support $45-$75 DMA will also be reimbursed for reasonable out-of-pocket expenses incurred. DMA will render the Appraiser Services to the Debtor according to the provisions of the DMA Agreement with a maximum amount to bill under this engagement of $15,000 for its fees and out of pocket expenses to provide the Appraiser Services. The initial expense and fees are estimated between $10,000 and $15,000. A retainer of $5,000 is due when the Court approves the DMA Agreement. Wesley L. Nutten, partner of DMA, 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. DMA can be reached at: Wesley L. Nutten DESMOND, MARCELLO & AMSTER 6060 Center Drive, Suite 825 Los Angeles, CA 90045 Tel: (310) 216-1400 Fax: (310) 216-0800 E-mail: wnutten@dmavalue.com About Allied Industries Allied Industries, Inc., filed a Chapter 11 petition (Bankr. C.D. Cal. Case. No. 13-11948) on March 21, 2013. The petition was signed by Ernesto Gutierrez as president and chief executive officer. The Debtor scheduled assets of $13,086,216 and scheduled liabilities of $7,457,365. Then Debtor has tapped Dheeraj K. Singhal, Esq., and Dixon L. Gardner, Esq. at DCDM Law Group, P.C., as counsel, the Capital Turnaround Group, Inc., as turnaround consultant, and Glenn M. Gelman & Associates as accountants. The Official Committee of Unsecured Creditors has retained Pachulski Stang Ziehl & Jones LLP as counsel and CohnReznick LLP as financial advisor. AMERICAN APPAREL: VP of Finance and Controller Resigns ------------------------------------------------------ Adrian Taylor provided notice to American Apparel, Inc., of his intention to resign from his position as vice president of finance and controller of the Company. Mr. Taylor provided notice of his intent to resign in order to accept a senior executive position at another company. The resignation will be effective on or about March 14, 2014, and John Luttrell, executive vice president and chief financial officer of the Company, will assume the duties of Controller as of that date until a new Controller is appointed. About American Apparel Los Angeles, Calif.-based American Apparel, Inc. (NYSE Amex: APP) -- http://www.americanapparel.com/-- is a vertically integrated manufacturer, distributor, and retailer of branded fashion basic apparel. As of September 2010, American Apparel employed over 10,000 people and operated 278 retail stores in 20 countries, including the United States, Canada, Mexico, Brazil, United Kingdom, Ireland, Austria, Belgium, France, Germany, Italy, the Netherlands, Spain, Sweden, Switzerland, Israel, Australia, Japan, South Korea and China. Amid liquidity problems and declining sales, American Apparel in early 2011 reportedly tapped law firm Skadden, Arps, Slate, Meagher & Flom and investment bank Rothschild Inc. for advice on a restructuring. In April 2011, American Apparel said it raised $14.9 million in rescue financing from a group of investors led by Canadian financier Michael Serruya and private equity firm Delavaco Capital Corp., allowing the casual clothing retailer to meet obligations to its lenders for the time being. Under the deal, the investors were buying 15.8 million shares of common stock at 90 cents apiece. The deal allows the investors to purchase additional 27.4 million shares at the same price. The Company incurred a net loss of $37.27 million in 2012, as compared with a net loss of $39.31 million in 2011. The Company's balance sheet at Sept. 30, 2013, showed $332.93 million in total assets, $389.12 million in total liabilities and a $56.19 million total stockholders' deficit. * * * As reported by the Troubled Company Reporter on Feb. 26, 2014, Standard & Poor's Ratings Services lowered its corporate credit rating to 'CCC' from 'B-' on Los Angeles-based American Apparel Inc. The outlook is developing. The Troubled Company Reporter, on Nov. 21, 2013, reported that American Apparel Inc. had its corporate family rating cut one level to Caa2 by Moody's Investors Service. The clothing retailer's probability of default was also lowered one level and the outlook is negative. AMERICAN TITLE: Title Resources' Suit Stayed Following Bankruptcy ----------------------------------------------------------------- District Judge Raymond P. Moore held that all proceedings against American Title Services Company are stayed by virtue of the company's bankruptcy filing, unless and until relief from the automatic stay. American Title Services is a defendant in the case, TITLE RESOURCES GUARANTY COMPANY, a Texas corporation, Plaintiff, v. AMERICAN TITLE SERVICES COMPANY, a Colorado corporation; AMERICA'S HOME TITLE, LLC, a Colorado limited liability company; AMERICAN TITLE CORP., a Colorado corporation; ESTATE OF RICHARD TALLEY, a Colorado decedent; CHERYL TALLEY, individually and in her capacity as successor to Richard Talley or representative for the Estate of Richard Talley; BILL KRIEG, an individual; GK PEAKVIEW TOWER, LLC, a Delaware limited liability company; and CITYWIDE BANKS, a Colorado corporation, Defendants, Civil Action No. 14-cv-0366-RM- BNB (D. Colo.). Judge Moore said American Title Services is directed to file a status report in the lawsuit case within 10 days of any relief from stay in the bankruptcy case. A copy of the Court's March 20, 2014 Order is available at http://is.gd/HVnun6from Leagle.com. Title Resources Guaranty Company, a Texas corporation, Plaintiff, is represented by Heather K. Kelly, Esq., Nicole Christine Irby, Esq., and Byeongsook Seo, Esq., at Gordon & Rees, LLP. American Title Services Company is represented by James T. Markus, Esq., and Steven R. Rider, Esq., at Markus Williams Young & Zimmermann LLC. America's Home Title, LLC, is represented by James T. Markus, Markus Williams Young & Zimmermann LLC & Steven R. Rider, Markus Williams Young & Zimmermann LLC. Cheryl (I) Talley, individually, Defendant, is represented by Lee M. Kutner, Esq., at Kutner Brinen Garber, PC. Bill Krieg, an individual, Defendant, is represented by Trevor J. Willard, Esq., and W. Harold Flowers, Jr., at Hurth Sisk & Blakemore, LLP. About American Title Service American Title Service Company, based in Denver, Colorado, filed for Chapter 11 bankruptcy (Bankr. D. Colo. Case No. 14-12894) on March 12, 2014. Judge Sidney B. Brooks presides over the bankruptcy case. Steven R. Rider, Esq., at Block Markus Williams, serves as the Debtor's counsel. In its petition, the Debtor estimated $1 million to $10 million in both assets and liabilities. The petition was signed by Thomas M. Kim, chief wind-down manager. ARICENT TECHNOLOGIES: Moody's Assigns B2 Corporate Family Rating ---------------------------------------------------------------- Moody's Investors Service has assigned first-time corporate family and probability of default ratings ("CFR" and "PDR", respectively) of B2 and B2-PD, respectively, to Aricent Technologies (Aricent). Concurrently, Moody's assigned Ba3 ratings to the proposed $75 million senior secured revolving credit facility due 2019 and $480 million first lien term loan due 2021 and a B3 rating to the proposed $195 million second lien term loan due 2022. The rating outlook is stable. The proceeds from the financing will be used primarily to repay existing debt. The assigned ratings are subject to review of final documentation and no material change in the terms and conditions of the transactions. Ratings Rationale The B2 CFR reflects Aricent's size and scale relative to larger and financially stronger information technology (IT) services and outsourcing providers and lower profitability than its Indian IT services peers. The rating also considers Aricent's high initial financial leverage of mid 6 times adjusted debt to EBITDA, which includes about $90 million of Holdco PIK notes due September 2022. Given Aricent's modest cash flow prospects (more than $20 million of annual free cash flow), potentially high investment costs to support growth in its core product engineering business, and uncertainty over the ability to sustain core revenue and profit growth after a period of restructuring, Moody's believes that financial leverage will likely remain elevated at about 6 times through 2015. At the same time, the B2 rating is supported by favorable industry dynamics in which the outsourced R&D engineering segment should outpace the growth of the overall IT services market of low to mid single digits through the next year. Aricent's relationships from its customer base of leading communications and network infrastructure companies provides a recurring base of revenues. High client retention rates and good backlog visibility reinforces the value of low cost, offshore R&D solutions in a functional area characterized by high engineering costs. These benefits help to mitigate the customer concentration risk as the top 3 clients comprise about 30% of total revenues. The stable outlook reflects Moody's expectation that Aricent will generate annual revenue and profit growth of at least mid single digits through fiscal year ending March 2015. Moody's also anticipates a free cash flow to debt ratio in the low single digits, consistent with technology services peers in the B rating category. The stable outlook incorporates Moody's expectation that no significant dividends will be paid to the owners. The ratings could be upgraded if Aricent were to demonstrate double digit organic revenue growth, solid improvements in operating margins over 15%, free cash flow to debt in the high single digits, and adjusted debt to EBITDA of less than 4 times on a sustained basis. Downward ratings pressure could arise if Aricent's revenue declines, operating profit margins were to dip into the mid single digits, liquidity deteriorates (e.g., negative free cash flow), or adjusted debt to EBITDA were to exceed 7 times on a sustained basis. The following first-time ratings/assessments were assigned: Corporate Family Rating -- B2 Probability of Default Rating -- B2-PD Senior Secured Revolving Credit Facility -- Ba3 (LGD2, 28%) Senior Secured First Lien Term Loan -- Ba3 (LGD2, 28%) Senior Secured Second Lien Term Loan -- B3 (LGD5, 75%) The principal methodology used in this rating was Global Business & Consumer Service Industry published in October 2010. Other methodologies used include Loss Given Default for Speculative- Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. With projected annual revenues of about $600 million, Aricent Technologies is a global outsourced provider of R&D engineering services and software solutions principally to the communications industry. The company is majority owned by Kohlberg Kravis Roberts (KKR). ASR CONSTRUCTORS: Plan Exclusivity Period Extended Until April 21 ----------------------------------------------------------------- At the behest of ASR Constructors, Inc., the U.S. Bankruptcy Court Court for the Central District of California extended period within which the Debtors may file a plan of reorganization under Bankruptcy Code Sections 1121(b) and 1121(c)(2) through and including April 21, 2014. The exclusive period within which the Debtors may solicit acceptances to a plan pursuant to Bankruptcy Code Section 1121(c)(3) is extended through and including June 20, 2014. As reported in the Troubled Company Reporter on Feb. 14, 2014, James C. Bastian, Jr., Esq., at Shulman Hodges & Bastian LLP, on behalf of ASR Constructors, Inc., et al., asks the U.S. Bankruptcy to extend the Debtors' exclusive periods to file and solicit acceptances of a Chapter 11 bankruptcy plan for approximately 60 days from Another Meridian Company, LLC's and Inland Machinery, Inc.'s current exclusivity periods. The exclusivity period by which only ASR may file a plan was scheduled to expire on Jan. 21, 2014, and the period during which only ASR is authorized to solicit acceptances of the plan was to expire on March 19. ASR filed the request for an extension before the exclusive periods were set to expire. According to Mr. Bastian, the extension will enable the Debtors to address the principal disputes in the case impacting their Chapter 11 plan. Mr. Bastian adds that an effective chapter 11 plan cannot be filed until certain lien disputes are resolved. Furthermore, distribution to unsecured claims depends on resolution of the lien disputes or payment in full on secured claims, which may not be known until the ASR bonded projects are completed and sureties/insurers like Federal and Berkeley exhaust collection of all receivables due on the pending ASR projects. About ASR Constructors ASR Constructors, Inc., filed a Chapter 11 petition (Bankr. C.D. Cal. Case No. 13-25794) on Sept. 20, 2013. The petition was signed by Alan Regotti as president. The Debtor estimated assets and debts of at least $10 million. Judge Mark D. Houle presides over the case. James C Bastian, Jr., Esq., at Shulman Hodges & Bastian, LLP, serves as the Debtor's counsel. The Law Office of John D. Mannerino serves as corporate counsel to the Debtor. Rodgers, Anderson, Malody & Scott LLP CPAs serves as accountant to the Debtor. ATP OIL: Omega Awarded $649,026 Admin Expense Claim --------------------------------------------------- In the Chapter 11 case of ATP Oil & Gas Corporation, Bankruptcy Judge Marvin Isgur awarded Omega an administrative expense for $649,026.47, but denied Omega's motion to compel immediate payment of its administrative expense. Omega performed postpetition repair and maintenance work for ATP. A copy of the Court's March 18, 2014 Memorandum Opinion is available at http://is.gd/uUsKKVfrom Leagle.com. About ATP Oil Houston, Texas-based ATP Oil & Gas Corporation is an international offshore oil and gas development and production company focused in the Gulf of Mexico, Mediterranean Sea and North Sea. ATP Oil & Gas filed a Chapter 11 petition (Bankr. S.D. Tex. Case No. 12-36187) on Aug. 17, 2012. Attorneys at Mayer Brown LLP, serve as bankruptcy counsel. Munsch Hardt Kopf & Harr, P.C., is the conflicts counsel. Motley Rice LLC and Fayard & Honeycutt, APC serve as special counsel. Opportune LLP is the financial advisor and Jefferies & Company is the investment banker. Kurtzman Carson Consultants LLC is the claims and notice agent. ATP disclosed assets of $3.6 billion and $3.5 billion of liabilities as of March 31, 2012. Debt includes $365 million on a first-lien loan where Credit Suisse AG serves as agent. There is $1.5 billion on second-lien notes with Bank of New York Mellon Trust Co. as agent. ATP's other debt includes $35 million on convertible notes and $23.4 million owing to third parties for their shares of production revenue. Trade suppliers have claims for $147 million, ATP said in a court filing. An official committee of unsecured creditors has been appointed in the case. Evan R. Fleck, Esq., at Milbank, Tweed, Hadley & McCloy, in New York, represents the Creditors Committee as counsel. A seven-member panel of equity security holders has also been appointed in the case. Kyung S. Lee, Esq., and Charles M. Rubio, Esq. of Diamond McCarthy LLP, in Houston, Texas, serve as counsel to the Equity Committee. Judge Isgur has said he will convert the Chapter 11 case of ATP Oil to a case under Chapter 7 at a hearing to be conducted on March 27, 2014, at 1:30 p.m., unless parties-in-interest can show cause why conversion is not appropriate. Judge Isgur said the case has been on file for a sufficient time to allow the formulation of a plan of reorganization. BAY CITY SHOVELS: Voluntary Chapter 11 Case Summary --------------------------------------------------- Debtor: Bay City Shovels, Inc. 2497 US 23 Au Gres, MI 48703 Case No.: 14-20650 Chapter 11 Petition Date: March 24, 2014 Court: United States Bankruptcy Court Eastern District of Michigan (Bay City) Judge: Hon. Daniel S. Opperman Debtor's Counsel: Daniel J. Weiner, Esq. SCHAFER AND WEINER, PLLC 40950 Woodward Ave., Suite 100 Bloomfield Hills, MI 48304 Tel: (248) 540-3340 Email: dweiner@schaferandweiner.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Peter L. Kaiser, authorized agent. The Debtor did not file a list of its largest unsecured creditors when it filed the petition. BENTLEY PREMIER: Chapter 11 Trustee, Lenders Oppose Golgart Plan ---------------------------------------------------------------- The bankruptcy trustee of Bentley Premier Builders, LLC asked U.S. Bankruptcy Judge Brenda Rhoades to deny the confirmation of the Chapter 11 plan proposed by Sandy Golgart for the company. Jason Searcy, the court-appointed trustee, argued the plan is not feasible, pointing out that there are no sufficient funds to pay the claims of creditors. The restructuring plan proposes to pay unsecured claims within six months after Bentley officially exits bankruptcy as well as $1 million in administrative expense claims. Mr. Searcy also said the plan violates the "absolute priority rule" because it retains all rights for equity owners while it fails to provide sufficient sources of funding to pay all claims in full as proposed. The proposed plan also drew flak from secured lenders Starside LLC and the Phillip M. Pourchot Revocable Trust. The lenders questioned whether the plan is feasible or not, arguing it is "unlikely to be followed by an immediate need for additional refinancing or reorganization." The lenders also criticized the treatment of their secured claims under the plan. The treatment, they said, "is not fair and equitable" as required under the Bankruptcy Code. Meanwhile, the Collin County Tax Collector dropped its objection to the plan. In its objection, the tax collector had said it won't support a plan that doesn't provide for the retention of its tax liens. As of August 6, 2013, the tax collector held statutory ad valorem tax liens on some of the real properties owned by Bentley in the Normandy Estates and Wyndsor Pointe subdivisions. The tax liens secure the repayment of ad valorem property taxes assessed against the properties for tax years 2012 and 2013 in the sum of $287,444. The trustee is represented by: Searcy & Searcy, P.C. Box 3929 Longview, Texas 75606 Tel: (903) 757-3399 Fax: (903) 757-9559 The CCTC is represented by: Michael S. Mitchell, Esq. DeMarco Mitchell, PLLC 1255 W. 15th Street, 805 Plano, TX 75075 Tel: (972) 578-1400 Fax: (972) 346-6791 Email: mike@demarcomitchell.com The secured lenders are represented by: Mark E. Andrews, Esq. Aaron M. Kaufman, Esq. Cox Smith Matthews Incorporated 1201 Elm Street, Suite 3300 Dallas, Texas 75270 Tel: (214) 698-7800 Fax: (214) 698-7899 Email: mandrews@coxsmith.com akaufman@coxsmith.com -- and -- Nathan Allen, Jr., Esq. Laura L. Worsham, Esq. Lynn Schleinat, Esq. Jones, Allen & Fuquay, LLP 8828 Greenville Avenue Dallas, Texas 75243 Tel: (214) 343-7400 Fax: (214) 343-7455 About Bentley Premier Bentley Premier Builders, LLC, is a Texas limited liability company in the business of selling high-end residential lots and building high-quality luxury homes. The Debtor owns and develops lots, primarily in the two subdivisions known as Normandy Estates, which straddles both Denton and Collin Counties, near the intersection of Spring Creek Parkway and Midway Road in Plano, and Wyndsor Pointe, which is located in Frisco off Stonebrook Parkway, one-half mile west of the Dallas North Tollway. The company has 100 vacant residential lots, with listing prices ranging from $150,000 to $900,000. In addition to these vacant lots, the company owns a model house and an Amenities Center in Normandy Estates, two houses in Wyndsor Pointe, some common areas and an approximately 5-acre tract zoned for commercial use. Bentley filed a Chapter 11 petition (Bankr. E.D. Tex. Case No. 13-41940) on Aug. 6, 2013 in Sherman, Texas. The Debtor disclosed $35,793,857 in assets and $30,428,782 in liabilities as of the Chapter 11 filing. The Phillip M. Pourchot Revocable Trust (led by co-trustee Phillip M. Pourchot) and Sandy Golgart each hold a 50% member's interest in the Debtor. Ms. Golgart signed the bankruptcy petition. The Debtor sought bankruptcy after Starside LLC, an entity owned by Phillip Pourchot, acquired the note issued to Sovereign Bank for a $7,250,000 loan, and served notice of its attempt to foreclose upon properties securing the note. Gerald P. Urbach, Esq., and Jason A. Katz, Esq., at Hiersche, Hayward, Drakeley & Urbach, P.C., in Addison, Texas, serve as the Debtor's counsel. Judge Brenda Rhoades presides over the case. A chapter 11 trustee was appointed following motions filed by the U.S. Trustee and the Pourchot Trust. Jason R. Searcy, the Chapter 11 trustee, tapped to employ Joshua P. Searcy, Esq., at Searcy & Searcy, P.C. as attorneys, and Gollob, Morgan, Peddy & Co., P.C., as accountants. The deadline to file claims against and interest in the Debtor expired Dec. 5, 2013. Governmental entities had until Feb. 3, 2014, to file proofs of claim. Competing plans of reorganization have been filed on behalf of the Debtor by Starside, LLC and the Phillip M. Pourchot Revocable Trust, on the one hand; and Sandy Golgart, on the other. The Trust and Golgart each own 50% of the Debtor. Golgart's plan would allow Golgart to maintain control of the Debtor. If Pourchot's plan is approved, Pourchot will likely grab control of the company as the plan would allow it to submit a credit bid for the assets. The two factions differ on the valuation of the Debtor's assets and the amount of Pourchot's claims. Golgart's Plan says the Debtor's properties have a fair market value in excess of $36 million and the maximum amount of the secured debt is $18 million, thus leaving substantial equity in the Debtor's properties. Pourchot's plan says the present value of the Debtor's real estate assets is just $23 million to $27 million, and the secured claims of Pourchot and Starside are at least $29.2 million -- thus equity is out of the money, and Golgart would be wiped out. Plan votes are due March 7, 2014. The Plan confirmation will start March 28 and may be continued as needed on March 31. Golgart is represented by Mark A. Castillo, Esq., and Joshua L. Shepherd, Esq., at Curtis | Castillo PC; and John T. Palter, Esq., and Kimberly M. J. Sims, Esq., at Palter Stokley Sims Wright PLLC. The Pourchot Parties are represented by Mark E. Andrews, Esq., and Aaron M. Kaufman, Esq., at Cox Smith Matthews Incorporated; and Laura L. Worsham, Esq., and Lynn Schleiner, Esq., at Jones, Allen & Fuquay, LLC. BENTLEY PREMIER: Golgart Opposes Confirmation of Pourchot Plan -------------------------------------------------------------- Sandy Golgart, a creditor of Bentley Premier Builders LLC, is opposing the confirmation of the Chapter 11 plan proposed by secured lenders for the company. In a court filing, Ms. Golgart's lawyer questioned a provision of the plan proposed by Starside LLC and the Phillip M. Pourchot Revocable Trust that would ensure she receives nothing for her equity in Bentley. The provision states that the plan proponents won't "reserve or pursue avoidance actions against non-insiders except to the extent an avoidable payment or transfer was made to a non-insider for the benefit of an insider." "The failure to properly preserve claims that could pay Golgart on her 50% equity position is a violation of the [Bankruptcy] Code," said Mark Castillo, Esq., at Curtis | Castillo PC, in Dallas, Texas. Mr. Castillo also questioned another provision that provides full releases of those causes of action that could pay Ms. Golgart in further violation of U.S. bankruptcy law. "Pourchot's plan fails to provide the means for payment to Golgart's prepetition equity position of the recoveries from reserved and pursued causes of action," the lawyer said in court papers. Mr. Castillo can be reached at: Mark A. Castillo, Esq. Curtis | Castillo PC 901 Main Street, Suite 6515 Dallas, Texas 75202 Tel: (214) 752-2222 Fax: (214) 752-0709 About Bentley Premier Bentley Premier Builders, LLC, is a Texas limited liability company in the business of selling high-end residential lots and building high-quality luxury homes. The Debtor owns and develops lots, primarily in the two subdivisions known as Normandy Estates, which straddles both Denton and Collin Counties, near the intersection of Spring Creek Parkway and Midway Road in Plano, and Wyndsor Pointe, which is located in Frisco off Stonebrook Parkway, one-half mile west of the Dallas North Tollway. The company has 100 vacant residential lots, with listing prices ranging from $150,000 to $900,000. In addition to these vacant lots, the company owns a model house and an Amenities Center in Normandy Estates, two houses in Wyndsor Pointe, some common areas and an approximately 5-acre tract zoned for commercial use. Bentley filed a Chapter 11 petition (Bankr. E.D. Tex. Case No. 13-41940) on Aug. 6, 2013 in Sherman, Texas. The Debtor disclosed $35,793,857 in assets and $30,428,782 in liabilities as of the Chapter 11 filing. The Phillip M. Pourchot Revocable Trust (led by co-trustee Phillip M. Pourchot) and Sandy Golgart each hold a 50% member's interest in the Debtor. Ms. Golgart signed the bankruptcy petition. The Debtor sought bankruptcy after Starside LLC, an entity owned by Phillip Pourchot, acquired the note issued to Sovereign Bank for a $7,250,000 loan, and served notice of its attempt to foreclose upon properties securing the note. Gerald P. Urbach, Esq., and Jason A. Katz, Esq., at Hiersche, Hayward, Drakeley & Urbach, P.C., in Addison, Texas, serve as the Debtor's counsel. Judge Brenda Rhoades presides over the case. A chapter 11 trustee was appointed following motions filed by the U.S. Trustee and the Pourchot Trust. Jason R. Searcy, the Chapter 11 trustee, tapped to employ Joshua P. Searcy, Esq., at Searcy & Searcy, P.C. as attorneys, and Gollob, Morgan, Peddy & Co., P.C., as accountants. The deadline to file claims against and interest in the Debtor expired Dec. 5, 2013. Governmental entities had until Feb. 3, 2014, to file proofs of claim. Competing plans of reorganization have been filed on behalf of the Debtor by Starside, LLC and the Phillip M. Pourchot Revocable Trust, on the one hand; and Sandy Golgart, on the other. The Trust and Golgart each own 50% of the Debtor. Golgart's plan would allow Golgart to maintain control of the Debtor. If Pourchot's plan is approved, Pourchot will likely grab control of the company as the plan would allow it to submit a credit bid for the assets. The two factions differ on the valuation of the Debtor's assets and the amount of Pourchot's claims. Golgart's Plan says the Debtor's properties have a fair market value in excess of $36 million and the maximum amount of the secured debt is $18 million, thus leaving substantial equity in the Debtor's properties. Pourchot's plan says the present value of the Debtor's real estate assets is just $23 million to $27 million, and the secured claims of Pourchot and Starside are at least $29.2 million -- thus equity is out of the money, and Golgart would be wiped out. Plan votes are due March 7, 2014. The Plan confirmation will start March 28 and may be continued as needed on March 31. Golgart is represented by Mark A. Castillo, Esq., and Joshua L. Shepherd, Esq., at Curtis | Castillo PC; and John T. Palter, Esq., and Kimberly M. J. Sims, Esq., at Palter Stokley Sims Wright PLLC. The Pourchot Parties are represented by Mark E. Andrews, Esq., and Aaron M. Kaufman, Esq., at Cox Smith Matthews Incorporated; and Laura L. Worsham, Esq., and Lynn Schleiner, Esq., at Jones, Allen & Fuquay, LLC. BETSEY JOHNSON: Marcum Accountants to Render Expanded Services -------------------------------------------------------------- Betsey Johnson LLC seeks the Court's approval to expand the scope of work of its accountants Marcum LLP. Marcum is an audit, tax and advisory organization. Since 2008, Marcum has provided Betsey Johnson with services related to various sales and tax audits. By Court order dated July 18, 2012, Betsey Johnson engaged Marcum to provide services in connection with audits of state sales and use tax obligations, preparation of state and federal tax returns for 2011 and 2012, and other tax-related matters. In addition, Marcum performed services for the Betsey Johnson 401(k) Profit Sharing Plan. Frank A. Oswald, Esq., at Togut, Segal & Segal LLP, in New York, relates that Marcum was involved in the analysis of several large claims against Betsey Johnson's estate and played a critical role in the successful reduction or reclassification of claims. Betsey Johnson now requires expanded tax services from Marcum to prepare: (a) state and federal tax returns for the year ending December 31, 2013; (b) extension payment calculations and forms for the returns; and (c) federal and state estimated tax calculations and forms for the year ending December 31, 2014. Marcum's standard hourly rates is $450-595 for partners, $275-450 for senior managers and managers, $195-250 for supervisors, and $140-195 for accounting seniors and staff. Mr. Oswald notes that Marcum's fees have not changed since its original engagement with Betsey Johnson in 2012. Robert Spielman, a partner at Marcum, assures the Court that his firm is a disinterested party pursuant to the Bankruptcy Code. When it filed for Chapter 11, Betsey Johnson owed Marcum $26,420 but the accountants had waived any prepetition claim it may have. 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. 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 the Official Committee of Unsecured Creditors' counsel. 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 will bring the Debtor about $5.2 million immediately, and more money could trickle in to pay off its 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. Judge Robert E. Grosman has scheduled a confirmation hearing on Betsey Johnson LLC's Chapter 11 plan of liquidation to commence on April 8, 2014, at 10:00 a.m. (Prevailing Eastern Time). The judge set April 1, 2014, at 5:00 p.m., as the deadline for submitting objections to confirmation of the Plan. BLACK DIAMOND MINING: Jones Day Must Produce Records ---------------------------------------------------- District Judge Amul R. Thapar granted the request of Taft A. McKinstry, trustee of the Unsecured Creditors Trust established in the Chapter 11 case of Black Diamond Mining Company et al., for an order directing Jones Day to turn over records regarding the Company. The trustee is attempting to pursue claims against Black Diamond's former officers, and needs complete access to Jones Day's records regarding the company. Jones Day vigorously contests that demand, asserting work-product protection. "Just as Jones Day may not invoke work-product protection directly against its own client, Black Diamond, the firm may not deny access to its client's successor-in-interest, the Trustee," Judge Thapar said. "Like a tornado, this bankruptcy case has a tendency to suck in everyone in its path. In this latest dispute, Black Diamond's lawyers at Jones Day are caught in the whirlwind," he added. Jones Day represented Black Diamond and its affiliates during the company's Chapter 11 restructuring. Before Black Diamond's creditors took the company into bankruptcy, they forced it to hire Alvarez & Marsal North America, LLC, as a financial advisor. Once in bankruptcy, Black Diamond brought on Ira Genser, a turnaround specialist from A&M, to manage the company and lead the Chapter 11 restructuring. Genser in turn hired his A&M colleague, Larry Tate, as the company's Chief Financial Officer. The global economic turmoil of 2008 unfortunately dashed any hopes of a successful reorganization. Black Diamond accordingly shifted to liquidation. A new bankruptcy plan created the BD Unsecured Creditors Trust to liquidate some of the company's assets, including any causes of action Black Diamond might have against A&M, Genser, and Tate. The Bankruptcy Court also appointed Taft A. McKinstry as the Trustee and as the representative of Black Diamond's estate. The Trustee then sued the A&M Parties for mismanaging Black Diamond. During discovery, the Trustee concluded that Jones Day's client file for Black Diamond would assist her case. Jones Day attorney Charles Oellermann testified that Genser's management of Black Diamond was unwise only from the perspective of hindsight. Oellermann admitted, however, that his firm had represented A&M in some matters. The Trustee believes Oellermann's testimony "demonstrated a clear bias for the A&M Parties," and she is confident that documents in the client file -- including internal communications among Jones Day lawyers -- will contradict his testimony, supporting her allegations of mismanagement. The case before the District Court is, TAFT A. MCKINSTRY, as Trustee of the BD Unsecured Creditors Trust, Plaintiff, v. IRA J. GENSER, et al., Defendants (E.D. Ky.). A copy of the Court's Memorandum Opinion and Order dated March 19, 2014, is available at http://is.gd/aa4jz0from Leagle.com. Taft A. McKinstry is represented by Ellen Arvin Kennedy, Esq., Grahmn Morgan, Esq., and Mackenzie Mayes Walter, Esq., at Dinsmore & Shohl LLP. Jackson Kelly PLLC's Chacey R. Ford, Esq., Jay Edward Ingle, Esq., and Mary Elisabeth Naumann, Esq., at Jackson Kelly PLLC; and John C. Goodchild, III, Esq., at Morgan, Lewis & Bockius, LLP in Chicago, and Shevon L. Scarafile, Esq., at Morgan Lewis & Bockius in Philadelphia, represent the Appellees and Counter-claimants: Ira J. Genser, Larry Tate, Alvarez & Marsal North America LLC. Jones Day, as Appellee and Counter-claimant, is represented by Matthew Curtis Corcoran, Esq., and Robert Hamilton, Esq., at Jones Day in Columbus. About Black Diamond Mining Headquartered in Pikeville, Kentucky, Black Diamond Mining Co., LLC, is a coal-mine operator formed in 2006. The company and seven of its affiliates sought Chapter 11 protection on (Bankr. E.D. Ky. Case No. 08-70109) on March 4, 2008. David M. Cantor, Esq., at Seiller Waterman, LLC, represents the Debtors in these cases. The U.S. Trustee for Region 8 appointed creditors to serve on an Official Committee of Unsecured Creditors. Foley & Lardner LLP represents the Committee in these cases. Prudential Insurance Co. of America and subsidiaries of CIT Group Inc., C.I.T. Capital U.S.A., Inc. and The C.I.T Group/Commercial Services Inc., filed involuntary Chapter 11 petitions against FCDC Coal Inc., Black Diamond Mining Co., Martin Coal Processing Corp., Spurlock Energy Corp., Turner Elkhorn Mining Co., Wolverine Resources, Inc. and Black Diamond Land Co. LLC on Feb. 19, 2008 (Bankr. E.D. Ky. Case Nos. 08-50369 to 08-50372 and 08-70066 to 08-70067). Robert J. Brown, Esq., at Wyatt, Tarrant & Combs, L.L.P., represent the petitioners. According to the petitioners, the Debtors owe them $150 million. The Debtors schedules showed $73,669,934 in total assets and $207,403,591 in total liabilities. As reported in the Troubled Company Reporter on Feb. 25, 2008, the petitioning creditors sought the appointment of a Chapter 11 trustee for the Debtors. The petitioners alleged that the Debtors' controlling equity owner Harold E. Sergent and other shareholders are "hopelessly conflicted." They insisted that the company has no money since losing $25 million last year and they had refused to dole out a single cent until a trustee assumes control of the company and comes up with an appropriate budget. The Court entered an order for relief on the involuntary petitions on March 11, 2008. Alvarez & Marsal North America LLC was appointed to provide a chief restructuring officer for FCDC Coal Inc. and Black Diamond Mining Co. The Company filed a Chapter 11 plan in early 2009. The Court on July 23, 2009, entered an order confirming the Debtors' Third Amended Joint Plan of Liquidation, as Modified. On the effective date of the Plan, the Unsecured Creditors Trust was created and Taft A. McKinstry was appointed. Harold Sergent filed his own chapter 7 bankruptcy petition (Bankr. E.D. Ky. Case No. 10-50763) on March 9, 2010. Phaedra Spradlin was appointed the Chapter 7 Trustee. BON-TON STORES: James Berylson Stake at 5.1% as of Feb. 13 ---------------------------------------------------------- In a Schedule 13G filed with the U.S. Securities and Exchange Commission, Berylson Master Fund, LP, Berylson Capital Partners, LLC, and James Berylson disclosed that as of Feb. 13, 2014, they beneficially owned 887,118 shares of common stock of The Bon-Ton Stores, Inc., representing 5.1 percent of the shares outstanding. A copy of the regulatory filing is available for free at: http://is.gd/LUKpRn About Bon-Ton Stores The Bon-Ton Stores, Inc., with corporate headquarters in York, Pennsylvania and Milwaukee, Wisconsin, operates 273 department stores, which includes 10 furniture galleries, in 25 states in the Northeast, Midwest and upper Great Plains under the Bon-Ton, Bergner's, Boston Store, Carson Pirie Scott, Elder-Beerman, Herberger's and Younkers nameplates and, in the Detroit, Michigan area, under the Parisian nameplate. For the 39 weeks ended Nov. 2, 2013, the Company reported a net loss of $64.89 million. The Company incurred a net loss of $21.55 million for the year ended Feb. 2, 2013, following a net loss of $12.12 million for the year ended Jan. 28, 2012. The Company's balance sheet at Nov. 2, 2013, showed $1.80 billion in total assets, $1.75 billion in total liabilities and $48.87 million in total shareholders' equity. * * * As reported by the TCR on May 15, 2013, Moody's Investors Service upgraded The Bon-Ton Stores, Inc.'s Corporate Family Rating to B3 from Caa1 and its Probability of Default Rating to B3-PD from Caa1-PD. "The upgrade of Bon-Ton's Corporate Family Rating considers the company's ability to drive modest same store sales growth as well as operating margin expansion beginning in the second half of 2012 and that these positive trends have continued, with the company reporting that its same store were positive, and EBITDA margins expanded, in the first fiscal quarter of 2013," said Moody's Vice President Scott Tuhy. As reported by the TCR on May 17, 2013, Standard & Poor's Ratings Services affirmed the 'B-' corporate credit rating on The Bon-Ton Stores Inc. BONDS.COM GROUP: To Be Acquired by MTS -------------------------------------- Bonds.com Group, Inc., the parent company of Bonds.com, Inc., has entered into a merger agreement to be acquired by MTS, part of London Stock Exchange Group. The all-cash acquisition will see MTS Markets International Inc., a wholly-owned U.S. subsidiary of MTS, acquire 100 percent of Bonds.com Group, Inc. outstanding shares. MTS is a leading provider of electronic trading in the European bond markets, with more than $100 billion executed daily on average over its existing platform. Through its new U.S. subsidiary, MTS Markets International, it offers U.S. buy-side participants the ability to directly access real-time pricing from one of the deepest liquidity pools in Europe and to trade electronically with all the major European dealers via its BondVision platform. Bonds.com Inc. offers real-time, executable orders on U.S. corporate bonds and emerging market debt to over 600 buy and sell- side institutions. Currently over 90 per cent of all trades completed through the platform are conducted electronically, with customers also able to benefit from a price discovery function. The transaction meets the growing customer and regulatory demand for access to transparent, electronic, cost-effective platforms for the trading of fixed income securities. George O'Krepkie, president of Bonds.com Inc. said: "We are delighted to be teaming with MTS as we enter the next phase of growth and development. We believe that the trend towards greater electronic trading for fixed income products will continue as the customer base becomes increasingly global. MTS brings a wealth of experience in providing electronic platforms for fixed income trading, which will enable us to better serve our customers through increased product choice." Jack Jeffery, CEO of MTS Group said: "This transaction enhances MTS' position as a global provider of fixed income trading platforms and is a natural extension for both MTS and London Stock Exchange Group. The expanded product offering will enable us to meet the on-going industry and regulatory drive for greater transparency and efficiency in fixed income markets, through a competitive and cost-effective platform." Mark Monahan, chief executive of MTS Markets International Inc. said: "Bonds.com Inc. has steadily developed its client base in the U.S. covering both buy and sell-side institutions. As a result of this transaction, MTS will be able to offer Bonds.com Inc. its extensive expertise in the fixed income space, investing to expand the product offering for U.S. fixed income traders to meet their domestic and international needs." MTS Markets International Inc. and Bonds.com Inc. are both FINRA member broker dealers. Closing is subject to customary regulatory clearance and stockholder approval and is expected in Q2 2014. A copy of the Agreement and Plan of Merger is available at: http://is.gd/z2v6te Additional information is available for free at: http://is.gd/lTh6Z0 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. C&K MARKET: US Trustee Amends Creditors Panel --------------------------------------------- Gail Brehm Geiger, the acting U.S. Trustee, amended the list of members to the official committee of unsecured creditors in the Chapter 11 case of C&K Market Inc. The Creditors Committee members are: 1. Willamette Beverage Company dba Bigfoot Beverages c/o Eric Forrest Co-President P. O. Box 10728 Eugene, OR 97440 Tel: (541) 685-2064 Fax: (541) 687-8754 E-mail: eforrest@bigfootbeverages.com 2. J.B. Hunt Transport, Inc. c/o Clark W. Woods 615 J.B. Hunt Corporate Drive Lowell, AR 72745 Tel: (479) 419-3504 Fax: (479) 820-1717 E-mail: Clark_Woods@jbhunt.com 3. Coca-Cola Refreshments, Inc. c/o Michelle Higgins 521 Lake Kathy Drive Brandon, FL 33510 Tel: (813) 569-3189 Fax: (813) 569-3189 E-mail: mplunkett@coca-cola.com 4. Donald N. Bauhofer, Mgr. Nolan Town Center, LLC 250 NW Franklin Ave Suite 204 Bend, OR 97701 Tel: (541) 419-8707 Fax: (541) 389-0256 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 (Bankr. D. Ore. Case No. 13-64561). The case is assigned to Judge Frank R. Alley, III. C&K Market scheduled $157,696,921 in total assets and $101,604,234 in total liabilities. The Debtor is 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. Edward Hostmann has been tapped as chief restructuring officer, and The Food Partners, LLC, serves as the Debtor's financial advisor. Kieckhafer Schiffer & Company LLP serves as advisors and consultants to communicate with lenders, brokers, attorneys and other professionals. Henderson Bennington Moshofsky, P.C., serves as accountants. Watkinson Laird Rubenstein Baldwin & Burgess PC serves as labor counsel. The Debtor hired Great American Group, LLC, to conduct store closing sales. Kurtzman Carson Consultants is the Debtor's noticing agent. An Official Committee of Unsecured Creditors appointed in the Debtor's case has retained Scott L. Hazan, Esq., David M. Posner, Esq., and Jenette A. Barrow-Bosshart, Esq., at Otterbourg P.C. as lead co-counsel, and Tara J. Schleicher, Esq., at Farleigh Wada Witt as local co-counsel; and Protiviti, Inc. as financial consultant. C&K Market has filed a Chapter 11 plan and accompanying disclosure statement dated Jan. 31, 2014, which provide that each holder of an allowed general unsecured claim will receive one share of common stock of the reorganized debtor in exchange for each $10 of the holder's allowed general unsecured claim and a subscription right in the event the Debtor elects to consummate a rights offering. The Plan provides for the payment in full on the Effective Date of all Allowed Administrative Expense Claims, Priority Tax Claims, Other Priority Claims and the Allowed Secured Claim of U.S. Bank. The Plan provides for the payment in full over time, with interest, of all other Secured Claims. In general, Secured Creditors with personal property collateral will be paid in 60 equal amortizing payments, with interest at 5%, and Secured Creditors with real property collateral will be paid in 84 equal amortizing payments with interest at 5% based on a 25-year amortization with a balloon payment in seven years. CAMCO FINANCIAL: Huntington Bancshares Acquires Advantage Bank -------------------------------------------------------------- Huntington Bancshares Incorporated has completed its merger with Camco Financial Corp., parent company of Advantage Bank, based in Cambridge, Ohio. The simultaneous closing and conversion were completed successfully with the Advantage banking offices having opened March 3, 2014, as Huntington branches. "We are extremely pleased to welcome the more than 55,000 customers of Advantage Bank to Huntington," said Stephen D. Steinour, chairman, president and CEO of Huntington Bank. "With the addition of nine new branches, former Advantage customers and long-time Huntington customers will enjoy more convenience and accessibility from Cambridge to Cincinnati. We are grateful to our customers for their ongoing commitment to Huntington and we look forward to continue to invest in products and services that will make banking easier for them." Advantage customers are now able to sign up for Huntington's Asterisk Free Checking an account that has no minimum balance requirement and comes with 24-Hour Grace overdraft protection, identity theft protection and platinum debit cards, among other features. Advantage small business owners can also begin working with Huntington's business bankers, who have helped the bank become the third largest SBA lender in the country as of the most recent fiscal year. Customers also will have access to Huntington's entire 1500-ATM network throughout the Midwest, with no service charge, including more than 700 traditional and in-store branches. Shareholders accounting for approximately 88 percent of Camco shares outstanding elected to receive Huntington common stock in the transaction. Because the merger agreement provides that 80 percent of the outstanding Camco shares will be converted into Huntington common stock (1) shareholders who validly elected the stock consideration will receive a portion of the merger consideration in the form of Huntington stock, with the remainder in cash, (2) shareholders who validly elected the cash consideration will receive all cash in the merger, and (3) all shareholders who failed to make a valid election will receive cash in the merger. Beginning Monday, March 10, Camco shareholders can call Computershare's Corporate Actions at 855-396-2084 and reference "Huntington" for additional information. About Camco Financial Cambridge, Ohio-based Camco Financial Corporation is a bank holding company that was organized under Delaware law in 1970. Camco is engaged in the financial services business in Ohio, Kentucky and West Virginia, through its wholly-owned subsidiary, Advantage Bank, an Ohio bank. On March 31, 2011, Camco divested activities related to Camco Title Agency and decertified as a financial holding company. Camco remains a bank holding company and continues to be regulated by the Federal Reserve Board. Plante & Moran PLLC, in Auburn Hills, Michigan, in their report on the consolidated financial statements for the year ended Dec. 31, 2012, noted that the Corporation's bank subsidiary is not in compliance with revised minimum regulatory capital requirements under a formal regulatory agreement with the banking regulators, and that failure to comply with the regulatory agreement may result in additional regulatory enforcement actions. Camco's wholly-owned subsidiary Advantage Bank's Tier 1 capital does not meet the requirements set forth in the 2012 Consent Order. As a result, the Corporation will need to increase capital levels. Camco Financial reported net earnings of $7.83 million on $27.91 million of total interest income for the 12 months ended Dec. 31, 2013, as compared with net earnings of $4.16 million on $31.62 million of total interest income for the 12 months ended Dec. 31, 2012. As of Dec. 31, 2013, the Company had $774.38 million in total assets, $704.13 million in total liabilities and $70.24 million in stockholders' equity. CAMCO FINANCIAL: Stockholders Approve Merger with Huntington ------------------------------------------------------------ At a special meeting held on Feb. 19, 2014, Camco Financial Corporation's stockholders voted to adopt the Agreement and Plan of Merger with Huntington Bancshares Incorporated. As previously announced on Oct. 10, 2013, there are several conditions that must be satisfied before the merger may be consummated, including, but not limited to, regulatory approvals. The stockholders of the Company also approved at the Special Meeting, on a non-binding, advisory basis, the compensation to be paid to the Company's named executive officers that is based on or otherwise relates to the merger. James E. Huston, chairman, president, CEO of Camco Financial Corporation, commented, "We are pleased with the overwhelming affirmative vote at yesterday's Special Merger Meeting of Stockholders concerning the Agreement and Plan of Merger with Huntington Bancshares Incorporated. We expect a smooth transition following completion of the merger with our customers gaining expanded access to some of the most innovative banking products and services in the industry." About Camco Financial Cambridge, Ohio-based Camco Financial Corporation is a bank holding company that was organized under Delaware law in 1970. Camco is engaged in the financial services business in Ohio, Kentucky and West Virginia, through its wholly-owned subsidiary, Advantage Bank, an Ohio bank. On March 31, 2011, Camco divested activities related to Camco Title Agency and decertified as a financial holding company. Camco remains a bank holding company and continues to be regulated by the Federal Reserve Board. Plante & Moran PLLC, in Auburn Hills, Michigan, in their report on the consolidated financial statements for the year ended Dec. 31, 2012, noted that the Corporation's bank subsidiary is not in compliance with revised minimum regulatory capital requirements under a formal regulatory agreement with the banking regulators, and that failure to comply with the regulatory agreement may result in additional regulatory enforcement actions. Camco's wholly-owned subsidiary Advantage Bank's Tier 1 capital does not meet the requirements set forth in the 2012 Consent Order. As a result, the Corporation will need to increase capital levels. Camco Financial reported net earnings of $7.83 million on $27.91 million of total interest income for the 12 months ended Dec. 31, 2013, as compared with net earnings of $4.16 million on $31.62 million of total interest income for the 12 months ended Dec. 31, 2012. As of Dec. 31, 2013, the Company had $774.38 million in total assets, $704.13 million in total liabilities and $70.24 million in stockholders' equity. CANCER GENETICS: Paul Rothman Named to Board of Directors --------------------------------------------------------- The board of directors of Cancer Genetics, Inc., appointed Paul Rothman, MD, Dean of the Medical Faculty and CEO of Johns Hopkins Medicine, to the Company's Board of Directors on Feb. 18, 2014. As Dean and CEO, Dr. Rothman oversees both the Johns Hopkins Health System and the School of Medicine. He joined Johns Hopkins in July 2012, after having served as the Dean of the Carver College of Medicine at the University of Iowa and the leader of its clinical practice plan since 2008. Previously, he served as head of internal medicine at the University of Iowa, and prior to that, was vice chairman for research and founding director of the Division of Pulmonary, Allergy and Critical Care Medicine at Columbia University College of Physicians and Surgeons, where he joined the faculty in 1986. He is a Phi Beta Kappa graduate of the Massachusetts Institute of Technology and earned his medical degree from Yale University. He trained at Columbia-Presbyterian Medical Center and accepted a postdoctoral fellowship at Columbia University prior to joining its school faculty. Dr. Rothman will participate in the Company's standard compensation program for non-employee directors, including an annual retainer of $10,000 and, subject to the adoption of a new equity plan or amendment to increase the shares available for issuance under the 2011 Equity Plan, annual awards of options to purchase 10,000 shares of the Company's common stock and bi-annual awards of 5,000 shares of restricted stock. On Feb. 17, 2014, the Dr. Andrew Pecora notified the Company of his resignation from the Board, effective Feb. 18, 2014. Dr. Pecora's decision to resign was not the result of any disagreement with the Company on any matter relating to the Company's operations, policies or practices. On Feb. 19, 2014, the Company entered into a new, three-year consulting agreement with Dr. Chaganti, pursuant to which Dr. Chaganti provides the Company with consulting and technical support services in connection with the Company's technical and business affairs, including oversight of our clinical diagnostic laboratory. In consideration for Dr. Chaganti's services, the Company will continue to pay Dr. Chaganti $5,000 per month. In addition, he will receive, subject to the adoption of a new equity plan or amendment to increase the shares available for issuance under the 2011 Equity Plan, an option to purchase 200,000 shares of the Company's common stock at a purchase price of $19.94 per share in connection with his execution of the consulting agreement. That option vests in 16 quarterly installments of 12,500 shares commencing on April 1, 2014. Pursuant to his consulting agreement, the Company has continued the arrangement where Dr. Chaganti assigned to the Company all rights to any inventions which he may invent during the course of rendering consulting services to the Company. In exchange for this assignment, if the U.S. Patent and Trademark Office issues a patent for an invention on which Dr. Raju Chaganti is listed as an inventor, the Company agreed to pay Dr. Chaganti (i) a one-time payment of $50,000 and (ii) 1 percent of the net revenues the Company receives from any licensed sales of the invention for the life of the patent. About Cancer Genetics Rutherford, N.J.-based Cancer Genetics, Inc., is an early-stage diagnostics company focused on developing and commercializing proprietary genomic tests and services to improve and personalize the diagnosis, prognosis and response to treatment (theranosis) of cancer. "The Company has suffered recurring losses from operations, has negative working capital and a net capital deficiency that raise substantial doubt about its ability to continue as a going concern," according to the Company's quarterly report for the period ended March 31, 2013. For the nine months ended Sept. 30, 2013, the Company reported a net loss of $9.84 million on $4.75 million of revenue as compared with a net loss of $2.62 million on $3.22 million of revenue for the same period a year ago. The Company's balance sheet at Sept. 30, 2013, showed $14.30 million in total assets, $9.42 million in total liabilities and $4.88 million in total stockholders' equity. CASH STORE: Special Committee Formed to Review Alternatives ----------------------------------------------------------- The Cash Store Financial Services Inc.'s Board of Directors has constituted a special committee of independent directors to review and respond to recent developments in Ontario. On Feb. 12, 2014, the Ontario Superior Court of Justice ordered that the Company's subsidiaries, The Cash Store Inc. and Instaloans Inc., are prohibited from acting as a loan broker in respect of its basic line of credit product without a broker's license under the Payday Loans Act, 2008 (the "Payday Loans Act"). As part of its overall business strategy, and as a result of the current regulatory environment and the court decision, the Company has taken all steps necessary to immediately cease offering all line of credit products offered to its customers in the Ontario branches. On Feb. 13, 2014, the Ontario Registrar of Payday Loans issued a proposal to refuse to issue a lender's license to the Company's subsidiaries, The Cash Store Inc. and Instaloans Inc., under the Payday Loans Act, 2008. Therefore, the Company is not currently permitted to sell any payday loan products in Ontario. The Board of Directors believes that in light of these recent developments, it is prudent to mandate a special committee to carefully evaluate the strategic alternatives available to the Company with a view to maximizing value for all of its stakeholders. The special committee has engaged Osler, Hoskin & Harcourt LLP as its independent legal advisor to assist it in its strategic alternative review process. The Board has not established a definitive timeline for the special committee of independent directors to complete its review and there can be no assurance that this process will result in any specific strategic or financial or other value-creating transaction. The Company does not currently intend to disclose further developments with respect to this process, unless and until the Board of Directors approves a specific transaction, concludes its review of the strategic alternatives or otherwise determines there is material information to communicate. About Cash Store Financial Headquartered in Edmonton, Alberta, The Cash Store Financial is the only lender and broker of short-term advances and provider of other financial services in Canada that is listed on the Toronto Stock Exchange (TSX: CSF). Cash Store Financial also trades on the New York Stock Exchange (NYSE: CSFS). Cash Store Financial operates 512 branches across Canada under the banners "Cash Store Financial" and "Instaloans". Cash Store Financial also operates 25 branches in the United Kingdom. Cash Store Financial is a Canadian corporation that is not affiliated with Cottonwood Financial Ltd. or the outlets Cottonwood Financial Ltd. operates in the United States under the name "Cash Store". Cash Store Financial does not do business under the name "Cash Store" in the United States and does not own or provide any consumer lending services in the United States. Cash Store Financial employs approximately 1,900 associates. Cash Store reported a net loss and comprehensive loss of C$35.53 million for the year ended Sept. 30, 2013, as compared with a net loss and comprehensive loss of C$43.52 million for the year ended Sept. 30, 2012. As of Sept. 30, 2013, the Company had C$164.58 million in total assets, C$165.90 million in total liabilities and a C$1.32 million shareholders' deficit. * * * As reported in the Feb. 18, 2014, edition of the TCR, Standard & Poor's Ratings Services said it lowered its issuer credit rating on Edmonton, Alta.-based The Cash Store Financial Services Inc. (CSF) to 'CCC' from 'CCC+'. The downgrade follows the Ontario Superior Court of Justice's order that CSF is prohibited from acting as a loan broker for its basic line of credit product without a brokers license under the Payday Loans Act, 2008. As reported by the TCR on Feb. 21, 2014, Moody's Investors Service downgraded the Corporate Family of Cash Store Financial Services Inc to Ca from Caa2. The downgrade reflects the increased pressure on Cash Store's near-term liquidity position after the company was forced to cease offering its Line of Credit product in Ontario by its regulator, the Ministry of Consumer Services. CHECKER MOTORS: Interlocutory Appeal on Pension Liability Barred ---------------------------------------------------------------- District Judge Janet T. Neff denied the request of defendants Checker Acquisition Corporation, Allan R. Tessler, and Christopher Markin (Case No. 1:13-cv-746), and defendant Mitchell D. Schepps, as Personal Representative for the estate of David Markin (Case No. 1:13-cv-869), for leave to file an interlocutory appeal of the June 10, 2013 Opinion and Order of the Bankruptcy Court overseeing the Chapter 11 case of Checker Motors Corporation, concerning whether potential liability for withdrawal from a multi-employer retirement plan is properly considered in determining insolvency. For many years prior to and through the Petition Date, Checker Motors participated in a multi-employer pension plan. The Debtor attempted to reorganize in bankruptcy, but was unsuccessful. Thus, the Debtor moved the Court for permission to sell the majority of its assets, which permission the Court granted. Shortly thereafter, the Debtor withdrew from the Plan, incurring "withdrawal liability." Thomas C. Richardson sued, asserting that the Debtor's post- petition withdrawal liability was a contingent debt prior to the Petition Date and thus must be considered when determining whether the Debtor was insolvent at various times pre-petition. The Defendants disagree, as they believe that the Sixth Circuit case, CPT Holdings, Inc. v. Indus. & Allied Employees Union Pension Plan, Local 73, 162 F.3d 405 (6th Cir. 1998), is binding and requires a contrary holding. In its Opinion and Order on June 10, 2013, the Bankruptcy Court determined that both Plaintiff and Defendants were correct in part. The Court agreed with Defendants that CPT Holdings is binding when considering insolvency with respect to constructive fraud claims under 11 U.S.C. Sec. 548. For this purpose, a debtor's post-petition withdrawal liability is not treated as a pre-petition contingent claim. The Bankruptcy Court agreed with Plaintiff, however, that when considering the identical issue under the Michigan Uniform Fraudulent Transfer Act, post-petition withdrawal liability is treated as a pre-petition contingent claim. In denying the Defendants' motions for leave to appeal, the Court said it is not persuaded that this is an "exceptional" case appropriate for interlocutory appeal. The case before the District Court is, THOMAS C. RICHARDSON, Plaintiff/Appellee, v. CHECKER ACQUISITION CORPORATION, ALLAN R. TESSLER, and CHRISTOPHER MARKIN, Defendants/Appellants; and THOMAS C. RICHARDSON, Plaintiff/Appellee, v. MITCHELL D. SCHEPPS, as Personal Representative for the estate of David Markin, Defendant/Appellant, Case Nos. 1:13-cv-746, 1:13-cv-869 (W.D. Mich.). A copy of the District Court's March 20, 2014 Opinion is available at http://is.gd/bz57Igfrom Leagle.com. Mitchell D. Schepps, appellant, is represented by Eric D. Carlson, Esq., Ronald A. Spinner, Esq., and Timothy A. Fusco, Esq., at Miller Canfield Paddock & Stone PLC. Thomas C. Richardson, appellee, is represented by Daniel Richard Olson, Esq., and John T. Piggins, Esq., at Miller Johnson PLC. Dean Rietberg, interested party, is represented by Dean E. Rietberg, U.S. Department of Justice, Office of US Trustee. Daniel M. LaVille, interested party, appeared Pro Se. About Checker Motors Headquartered in Kalamazoo, Michigan, Checker Motors Corporation was established by Morris Markin in 1922 through a merger of Commonwealth Motors and Markin Automobile Body. The Debtor, once the manufacturer of the famed Checker automobile (the iconic American taxi cab), is a Kalamazoo, Michigan-based automotive parts supplier that makes metal stampings and welded assemblies for various car and truck lines. The Company filed for Chapter 11 protection on January 16, 2009 (Bankr. W.D. Mich. Case No. 09-00358). Christopher A. Grosman, Esq., at Carson Fischer, P.L.C., represents the Debtor in its restructuring efforts. The Debtor proposed Plante & Moran as financial advisor; Kurtzman Carson Consultants LLC as claims, noticing and balloting agent; and McCarthy Smith Law Group as special counsel. An official committee of unsecured creditors has been appointed in the case. As of December 31, 2008, the Debtor had $22.3 million in assets and $20.1 million in debts. CHESAPEAKE ENERGY: Sees Possible Spinoff of Oilfield Services ------------------------------------------------------------- Michael Calia, writing for The Wall Street Journal, reported that Chesapeake Energy filed for a possible spinoff of its oilfield services operations, a move the company had been considering. According to the report, Chesapeake also said it would change the name of the division to Seventy Seven Energy Inc. from the current Chesapeake Oilfield Operating LLC. The company said it intends the spinoff to come as a tax-free distribution to shareholders, the report said. Chesapeake last month said it was pursuing strategic alternatives for the operation, including a potential sale or a spinoff, the report related. The division -- which offers drilling, hydraulic fracturing and rig relocation, among other services -- pulled in about $2.2 billion in revenue last year, the report further related. About Chesapeake Energy Chesapeake Energy Corporation is one of the largest producers of natural gas and liquids in the United States. The Oklahoma City- based Company owns interests in 46,800 natural gas and oil wells, including liquids-rich resource plays of Eagle Ford Shale in South Texas and natural gas resource plays in the Haynesville/Bossier Shales in northwestern Oklahoma. * * * The Troubled Company Reporter, on Feb. 11, 2014, reported that Standard & Poor's Ratings Services said it revised its rating outlook on Oklahoma City-based Chesapeake Energy Corp. to positive from stable. S&P affirmed its 'BB-' corporate credit rating on the company. S&P also affirmed the 'BB-' issue-level rating on Chesapeake's senior unsecured notes; the recovery rating on these notes is '3', which indicates S&P's expectation of meaningful (50% to 70%) recovery in the event of a payment default. CLEAR CHANNEL: Incurs $606.8 Million Net Loss in 2013 ----------------------------------------------------- Clear Channel Communications, Inc., filed with the U.S. Securities and Exchange Commission its annual report on Form 10-K disclosing a net loss attributable to the Company of $606.88 million on $6.24 billion of revenue for the year ended Dec. 31, 2013, as compared with a net loss attributable to the Company of $424.47 million on $6.24 billion of revenue for the same period in 2012. The Company incurred a net loss attributable to the Company of $302.09 million in 2011. For the three months ended Dec. 31, 2013, the Company reported a net loss attributable to the Company of $309.22 million on $1.69 billion of revenue as compared with a net loss attributable to the Company of $191.26 million on $1.69 billion of revenue for the same period a year ago. As of Dec. 31, 2013, the Company had $15.09 billion in total assets, $23.79 billion in total liabilities and a $8.69 billion total shareholders' deficit. "With our unmatched reach and unparalleled assets, we outperformed the radio market and capitalized on the growing out-of-the- home consumer trend in 2013," Chairman and chief executive officer Bob Pittman said. "Clear Channel continued to create new businesses based on the strength of our core assets and to provide customized multi-platform market solutions to advertising partners that nobody else can. At Media+Entertainment, we further expanded our events business - reaching nearly 4 billion social impressions with December's Jingle Ball national tour, following up on September's iHeartRadio Music Festival's 2.3 billion social impressions. We also partnered with The CW Network to air 7 shows on broadcast TV, reaching over 50 million TV viewers. Our results at Outdoor reflected our sharp focus on rolling out new digital products in the U.S. and internationally, and on taking advantage of fast-growing emerging markets in Latin America and Asia. As America's leading multi-platform media company as measured by reach, we look forward to continuing to serve advertisers and consumers even better in 2014." Bankruptcy Warning "If our and our subsidiaries' cash flows from operations, refinancing sources and other liquidity-generating transactions are insufficient to fund our respective debt service obligations, we may be forced to reduce or delay capital expenditures, sell material assets or operations, or seek additional capital. We may not be able to take any of these actions, and these actions may not be successful or permit us or our subsidiaries to meet the scheduled debt service obligations. Furthermore, these actions may not be permitted under the terms of existing or future debt agreements." "The ability to refinance the debt will depend on the condition of the capital markets and our financial condition at such time. Any refinancing of the debt could be at higher interest rates and increase debt service obligations and may require us and our subsidiaries to comply with more onerous covenants, which could further restrict our business operations. The terms of existing or future debt instruments may restrict us from adopting some of these alternatives. These alternative measures may not be successful and may not permit us or our subsidiaries to meet scheduled debt service obligations. If we or our subsidiaries cannot make scheduled payments on indebtedness, we or our subsidiaries, as applicable, will be in default under one or more of the debt agreements and, as a result we could be forced into bankruptcy or liquidation." A copy of the Form 10-K is available for free at: http://is.gd/cCVXB6 About Clear Channel Communications San Antonio, Texas-based Clear Channel Communications, Inc., an indirect subsidiary of CC Media Holdings, Inc. (OTCBB: CCMO), is one of the leading global media and entertainment companies specializing in radio, digital, outdoor, mobile, live events, and on-demand entertainment and information services for local communities and providing premier opportunities for advertisers. CC Media Holdings Inc. -- http://www.ccmediaholdings.com/-- is a global media and entertainment company. Its businesses include radio and outdoor displays. * * * In May 2013, Moody's Investors Service said that Clear Channel's upsize of the term loan D to $4 billion from $1.5 billion will not impact the Caa1 facility rating assigned. Clear Channel's Corporate Family Rating is unchanged at Caa2. The outlook remains stable. In May, Standard & Poor's Ratings Services also announced that its issue-level rating on San Antonio, Texas-based Clear Channel's senior secured term loan remains unchanged at 'CCC+' following the company's upsize of the loan to $4 billion from $1.5 billion. The rating on parent company CC Media Holdings remains at 'CCC+' with a negative outlook, which reflects the risks surrounding the long- term viability of the company's capital structure. COLONY BEACH: Court Denies Confirmation of Joint Plan ----------------------------------------------------- The Bankruptcy Court in Tampa, Florida, has before it contested matters in five bankruptcy cases, including: (1) the contested confirmation of the Joint Plan filed by Resorts Management, Inc. ("RMI"), Colony Beach and Tennis Club, Inc. ("CBTC"), and Colony Beach, Inc. ("CBI"); (2) a "global" Settlement Agreement and Mutual Release among these same three Chapter 11 debtors, the Chapter 7 trustee for Colony Beach and Tennis Club, Ltd. (the "Partnership"), Dr. Murray Klauber, the developer of the Resort, his daughter, Katherine Moulton, and the Colony Beach and Tennis Club Condominium Association (the "Association"); and (3) a motion for summary judgment in an adversary proceeding ("AP 196") in the Partnership's Chapter 7 case seeking to disallow a secured claim acquired in 2010 by Colony Lender, LLC ("Colony Lender"). For more than 30 years, the 18-acre Colony Beach & Tennis Club Resort on Longboat Key was a world famous destination for Gulf Coast and tennis vacations. In the last 10 years, however, its physical condition has deteriorated, while disputes among its divided owners led to its closing in 2010. Ordinarily, debtors like RMI, CBTC and CBI would find it impossible to survive in a Chapter 11, much less achieve confirmation of a Chapter 11 plan. They have no active businesses, no income, no employees, and no equity in the real property they own -- an undivided 80% interest (CBTC, 45%; CBI, 35%) as tenants-in-common in the 3-acre "Rec. Lease Property". Their Joint Plan is not supported by the principal secured creditor, Colony Lender, which is owed nearly $14 million. The Joint Plan is premised on either a third-party purchaser coming forward or funding over five years by the Association, which must obtain a 75% Unit Owners' vote to authorize special assessments. The three Chapter 11 debtors, however, are at the center of a struggle for control of the 18-acre Resort property. Fifteen acres are controlled, for the time being, by the Unit Owners and the Association. Colony Lender owns outright a 15% undivided interest in the Rec. Lease Property and is pushing to acquire the debtors' 80% interest through a foreclosure sale. The Joint Plan proposed by debtors RMI, CBTC and CBI is dependent on approval of the Settlement Agreement. Together, the Joint Plan and the Settlement Agreement would: cause debtors CBTC and CBI to convey to the Association their respective 45% and 35% undivided interests in the "Rec. Lease Property," on which interests Colony Lender holds a mortgage, and compel Colony Lender to transfer its own 15% undivided interest in the Rec. Lease Property to the Association; resolve pending disputes among the Association and the Partnership, RMI, CBTC and CBI, and Dr. Klauber and Ms. Moulton; and obligate the Association to pay about $5.3 million to the Partnership trustee, the Chapter 11 debtors and Dr. Klauber; and obligate the Association to propose a Plan of Termination of the condominium, including a judicial valuation of the entire 18 acres, and then pay (or cause a designated third party to pay) Colony Lender and the other co-owners amounts equal to their proportionate interests in the Rec. Lease Property. If Colony Lender can acquire 100% of the Rec. Lease Property, it can assert, or threaten to assert, rent collection claims, under Article 4.4 of the Declaration to achieve ownership of the Unit Owners' interests in the other 15 acres.4 Likewise, if the Association acquires 100% of the Rec. Lease Property, as is proposed through the Joint Plan and Settlement Agreement, the issue of the personal liability of Unit Owners for rents will likely disappear. Appreciation of this dynamic is essential to understanding the parties' positions in these cases. Confirmation of the Joint Plan and approval of the Settlement Agreement are opposed by Colony Lender and the Field Trust. In a March 21, 2014 Memorandum Opinion available at http://is.gd/E2KIQ4from Leagle.com, Bankruptcy Judge K. Rodney May denies confirmation of the Joint Plan, denies approval of the Settlement Agreement, and grants partial summary judgment in AP 196 in favor of the Association and Colony Lender. The case is, COLONY BEACH & TENNIS CLUB ASSOCIATION, INC., Plaintiff v. COLONY LENDER, LLC Defendant, Adv. Proc. No 8:13-ap- 196-KRM (Bankr. M.D. Fla.). About Colony Beach & Tennis Club Association Based in Longboat Key, Florida, Colony Beach & Tennis Club Association, Inc., filed for chapter 11 bankruptcy protection (Bankr. M.D. Fla. Case No. 08-16972) on Oct. 29, 2008. The Hon. K. Rodney May oversees the case. Adam L. Alpert, Esq., Jeffrey W. Warren, Esq., and Shane G. Ramsey, Esq., at Bush Ross, P.A., act as the Debtor's bankruptcy counsel. When it filed for bankruptcy, the Association estimated $1 million to $10 million in estimated assets and $10 million to $50 million in estimated debts. About Colony Beach & Tennis Club Ltd. Also based Longboat Key, Colony Beach & Tennis Club, Ltd., filed for Chapter 11 bankruptcy (Bankr. M.D. Fla. Case No. 09-22611) on Oct. 5, 2009. Judge K. Rodney May presides over the case. Debtor's Counsel: Roberta A. Colton, Esq. -- racolton@trenam.com -- at Trenam Kemker, serves as bankruptcy counsel. When it filed for bankruptcy, the Club estimated $1 million to $10 million in estimated assets and $10 million to $50 million in estimated debts. The petition was signed by Murray J. Klauber, the Club's president. About Colony Beach and Tennis Club Inc. Colony Beach and Tennis Club, Inc., filed for Chapter 11 bankruptcy (Bankr. M.D. Fla. Case No. 13-00348) on Jan. 11, 2013, represented by Michael C. Markham, Esq., at Johnson Pope Bokor Ruppel & Burns, LLP. Affiliates that simultaneously filed for Chapter 11 are Colony Beach, Inc. (Case No. 13-00350), and Resorts Management, Inc. (Case No. 13-00354). Murray J. Klauber signed the petition as president. Each of the Debtors estimated under $50,000 in assets and under $10 million in liabilities. COMMUNITYONE BANCORP: Incurs $1.5 Million Net Loss in 2013 ---------------------------------------------------------- CommunityOne Bancorp filed with the U.S. Securities and Exchange Commission its annual report on Form 10-K disclosing a net loss of $1.48 million on $74.99 million of total interest income for the year ended Dec. 31, 2013, as compared with a net loss of $40 million on $77.98 million of total interest income in 2012. The Company incurred a $137.31 million net loss in 2011. The Company's balance sheet at Dec. 31, 2013, showed $1.98 billion in total assets, $1.90 billion in total liabilities and $80.36 million in total shareholders' equity. A copy of the Form 10-K is available for free at: http://is.gd/YimzCz About CommunityOne CommunityOne Bancorp (formerly FNB United) is the North Carolina- based bank holding company for CommunityOne Bank, N.A. (community1.com), which offers a full range of consumer, mortgage and business banking services, including loan, deposit, cash management, wealth and online banking services through 55 branches in 44 communities throughout the central, southern and western regions of the state. CONSTAR INTERNATIONAL: Supplemental Asset Sale Order Approved ------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware, in a supplemental order dated Feb. 27, 2014: i) approved the asset purchase agreement between Constar International Holdings LLC, et al., and Plastipak Packaging, Inc.; ii) authorized the sale of certain of the Debtor's assets outside the ordinary course of business; and iii) authorized the assumption and assignment of certain executory contracts and unexpired leases. The supplemental order provides that: -- each of the Debtors, the Official Committee of Unsecured Creditors, the Revolving Agent, DIP Note Agent, the requisite lenders under the prepetition roll over documents and prepetition shareholder documents, and the Dallas County have reached an agreements on the total amount of each of the reserves; and -- each of the reserves are approved on an individual line item basis. As reported in the Troubled Company Reporter on Feb. 12, 2014, Plastipak's bid at bankruptcy 11 U.S.C. Sec. 363 auction was determined to be the highest and best value for certain U.S. assets of the Debtor. The transaction is subject to customary closing conditions, including regulatory approval, and is expected to close in the first quarter. Upon closing, Constar sites will be operated under Plastipak ownership. Objections Overruled Judge Christopher S. Sontchi approved the APA, after determining that Plastipak's $102,450,000 offer for the Debtors' U.S. assets bested the offers from Amcor Rigid Plastics USA, Inc., and Envases Universales De Mexico S.A.P.I. De C.V. during the Feb. 6 auction. All objections concerning the sale are resolved in accordance with the terms of the sale order. To the extent any objection was not withdrawn, waived, or settled, it is overruled and denied. Objections were raised by The J.M. Smucker Company, Pension Benefit Guaranty Corporation, Dallas County, Integrys Energy Services-Natural Gas, LLC, Plex Systems, Inc., Microsoft Corporation and Microsoft Licensing, GP, First Industrial Financing Partnership L.P., ColorMatrix Corporation, DAK Resinas Americas Mexico S.A. de C.V., DAK Americas, LLC, StarPet, Inc., and The Kroger Co. Most of the objections took issue on the proposed cure amounts to be paid in connection with the assumption of their contracts with the Debtors. With regards to Dallas County's objection, the Court directed the Debtors, the Official Committee of Unsecured Creditors, the Revolving Agent, the DIP Note Agent, other lenders and Dallas County to reach an agreement on the amount of reserves provided for in the sale order. Amcor will be paid a break-up fee and expense reimbursement at closing. From the proceeds of the sale of any of the Debtors' assets located in the state of Texas, the amount of $424,574 will be set aside as adequate protection for the secured claims of Dallas County prior to the distribution of any proceeds to any other creditor. About Constar International Privately held Constar International Holdings and nine affiliated debtors filed for Chapter 11 protection (Bankr. D. Del. Lead Case No. 13-13281) on Dec. 19, 2013. This is Constar International's third bankruptcy. Constar, which manufactures plastic containers, first filed for Chapter 11 protection (Bankr. D. Del. Lead Case No. 08-13432) in December 2008, with a pre-negotiated Chapter 11 Plan and emerged from bankruptcy in May 2009. Constar and its affiliates returned to Chapter 11 protection (Bankr. D. Del. Case No. 11-10109) on Jan. 11, 2011, with a pre-negotiated Chapter 11 plan and emerged from bankruptcy in June 2011. The 2013 petition listed assets worth less than $100 million against $123 million on three layers of secured debt. Judge Christopher S. Sontchi oversees the 2013 case. Constar is represented by Michael J. Sage, Esq., Brian E. Greer, Esq., Stephen M. Wolpert, Esq., and Janet Bollinger Doherty, Esq., at Dechert LLP; and Robert S. Brady, Esq., and Sean T. Greecher, Esq., at Young Conaway Stargatt & Taylor, LLP. Prime Clerk LLC serves as Constar's claims and noticing agent, and administrative advisor. Lincoln Partners Advisors LLC serves as the Debtors' financial advisor. Attorneys at Brown Rudnick LLP represent the official committee of unsecured creditors. The Committee retained Alvarez & Marsal North America LLC as its financial advisor. Counsel to Wells Fargo Capital Finance, LLC, the revolving loan agent, is Andrew M. Kramer, Esq., at Otterbourg P.C. The Bankruptcy Court on Feb. 10 approved the sale of the Debtors' U.S. Assets to Plastipak Packaging, Inc.; and the U.K. Assets to Sherburn Acquisition Limited. The Court determined that Plastipak's $102,450,000 offer for the Debtors' U.S. assets bested the offers from Amcor Rigid Plastics USA, Inc., and Envases Universales De Mexico S.A.P.I. De C.V. during a Feb. 6 auction. Separately, the Court authorized Constar to sell a facility in Havre de Grace, Maryland, to Smucker Natural Foods, Inc., for $3 million. There was no other bidder for the Maryland facility. The Sherburn deal closed on Feb. 14 and the Plastipak deal on Feb. 27. The sole director of debtor Constar International U.K. Limited has appointed Daniel Francis Butters and Nicolas Guy Edwards of Deloitte LLP as administrators. The U.K. Administration Proceeding follows the closing of the sale of the U.K. assets to Sherburn Acquisition Limited. The Delaware Bankruptcy Judge authorized the U.S. Debtors to sell the U.K. Assets to Sherburn for GBP3,512,727, (or US$7,046,000), less the deposit in the sum of US$1,250,000. Secured lender Black Diamond Commercial Finance, LLC, as DIP note agent, and Wells Fargo Capital Finance, LLC, as DIP revolving agent and agent under the revolving loan facility, consented to the administration of Constar U.K. and the appointment of the Joint Administrators. Constar International Holdings LLC has proposed to change its name to Capsule International Holdings LLC. The other debtors also will bear the names: Capsule Group Holdings, Inc.; Capsule Intermediate Holdings, Inc.; Capsule Group, Inc.; Capsule International LLC; Capsule DE I, Inc.; Capsule DE II, Inc.; Capsule PA, Inc.; Capsule Foreign Holdings, Inc.; and Capsule International U.K. Limited (Foreign). CUE & LOPEZ: Oriental Bank Asks Court to Appoint Examiner --------------------------------------------------------- Oriental Bank asks the Court to appoint an examiner authorized to investigate Cue & Lopez Construction Inc. and Cue & Lopez Contractors Inc. regarding: (a) transactions with insiders; (b) postpetition payments to suppliers that hold prepetition claims; and (c) amounts held by third parties for work completed. William Santiago-Sastre, Esq., at De Diego Law Offices, PSC, in Puerto Rico, points out that appointment of an examiner is warranted in the interest of creditors. Mr. Santiago-Sastre notes that, according to schedules filed with the Court, Cue & Lopez made over $2.6 million in prepetition payments to insiders: Payee Insider Payment Amount ------------- -------------- Frank Cue Garcia $21,535.37 70,719.74 98,896.20 Jesus O. Lopez Bernal 15,477.52 39,520.57 85,509.48 Frank Cue Fernandez 81,601.68 Mario R. Lopez Reinante 72,487.00 753,747.00 81,630.60 A large number of the payments, Mr. Santiago-Sastre adds, are made out to petty cash. Mr. Santiago-Sastre also tells the Court that $128,517 in compensation payments was made to insiders over a three-month period postpetition. There is no creditors committee to help parties to verify if the large amount paid is reasonable and necessary for the preservation of the bankruptcy estate, he says. The actions of Cue & Lopez, Mr. Santiago-Sastre contends, reflect business-as-usual without any cost-cutting measures even though institutional creditors are not paid. Mr. Santiago-Sastre stresses that insiders continue to enjoy large sum payments that cannot be justified in light of the purported insolvency or without the investigation of an examiner. About Cue & Lopez San Juan, Puerto Rico-based Cue & Lopez Construction, Inc., sought protection under Chapter 11 of the Bankruptcy Code on Oct. 4, 2013 (Case No. 13-08297, Bankr. D.P.R.). The case is assigned to Judge Brian K. Tester. The Debtor is represented by Charles Alfred Cuprill, Esq., at Charles A Curpill, PSC Law Office, in San Juan, Puerto Rico. CPA Luis R. Carrasquillo & Co., P.S.C., serves as its accountant. Cue & Lopez Construction scheduled $13,334,151 in total assets and $17,520,089 in total liabilities. The Chapter 11 petition was signed by Frank F. Cue Garcia, president. CUE & LOPEZ: Oriental Bank Wants to Bar Use of Cash Collateral -------------------------------------------------------------- Oriental Bank asks the Court to prohibit Cue & Lopez Construction Inc. and Cue & Lopez Contractors Inc. from using cash collateral without consent. The bank also wants that any funds that Cue & Lopez receive beginning October 4, 2013 be segregated in a separate account. William Santiago-Sastre, Esq., at De Diego Law Offices, PSC, in Puerto Rico, relates that before filing Chapter 11, Cue & Lopez provided collateral to assets of Oriental Bank, which includes accounts receivables for the retention of construction certifications of Casa Maggiore, Inc. Mr. Santiago-Sastre tells the Court that it contacted Cue & Lopez to discuss the use of retention receivables from Casa Maggiore to which Cue & Lopez replied that it had not received any payments nor did it expect to receive any soon. Mr. Santiago-Sastre, however, contends that on September 10, 2013, it did receive $100,000 from this account. At the meeting of creditors on November 8, 2013, Cue & Lopez informed the bank that the Casa Maggiore retention is not part of its estate based on legal precedent. Cue & Lopez estimated the value of this asset at $300,000. Section 362(c)(2) of Bankruptcy Code provides that the Debtor may not use, sell or lease cash collateral unless: (a) each entity that has an interest in such cash collateral consents; or (b) the court, after notice and hearing, authorizes such use, sales, or lease in accordance with the provisions of this section. About Cue & Lopez San Juan, Puerto Rico-based Cue & Lopez Construction, Inc., sought protection under Chapter 11 of the Bankruptcy Code on Oct. 4, 2013 (Case No. 13-08297, Bankr. D.P.R.). The case is assigned to Judge Brian K. Tester. The Debtor is represented by Charles Alfred Cuprill, Esq., at Charles A Curpill, PSC Law Office, in San Juan, Puerto Rico. CPA Luis R. Carrasquillo & Co., P.S.C., serves as its accountant. Cue & Lopez Construction scheduled $13,334,151 in total assets and $17,520,089 in total liabilities. The Chapter 11 petition was signed by Frank F. Cue Garcia, president. CUMULUS MEDIA: Ares Mgt. Owned 7% of Class A Shares at Feb. 20 -------------------------------------------------------------- In an amended Schedule 13G filed with the U.S. Securities and Exchange Commission, Ares Management LLC and its affiliates disclosed that as of Feb. 20, 2014, they beneficially owned 14,274,296 shares of Class A Common Stock of Cumulus Media Inc. representing 7.1 percent of the shares outstanding. A copy of the regulatory filing is available for free at http://is.gd/Vecdbn About Cumulus Media Founded in 1998, Atlanta, Georgia-based Cumulus Media Inc. (NASDAQ: CMLS) -- http://www.cumulus.com/-- is an operator of radio stations, currently serving 110 metro markets with more than 525 stations. In the third quarter of 2011, Cumulus Media purchased Citadel Broadcasting, adding more than 200 stations and increasing its reach in 7 of the Top 10 US metros. Cumulus also acquired the Citadel/ABC Radio Network, which serves 4,000+ radio stations and 121 million listeners, in the transaction Cumulus Media said in its annual report for the year ended Dec. 31, 2011, that lenders under the 2011 Credit Facilities have taken security interests in substantially all of the Company's consolidated assets, and the Company has pledged the stock of certain of its subsidiaries to secure the debt under the 2011 Credit Facilities. If the lenders accelerate the repayment of borrowings, the Company may be forced to liquidate certain assets to repay all or part of such borrowings, and the Company cannot assure that sufficient assets will remain after it has paid all of the borrowings under those 2011 Credit Facilities. If the Company was unable to repay those amounts, the lenders could proceed against the collateral granted to them to secure that indebtedness and the Company could be forced into bankruptcy or liquidation. Cumulus Media put AR Broadcasting Holdings Inc. and three other units to Chapter 11 protection (Bankr. D. Del. Lead Case No. 11-13674) in 2011 after struggling to pay off debts that topped $97 million as of June 30, 2011. Holdings estimated debts between $50 million and $100 million but said assets are worth less than $50 million. AR Broadcasting operated radio stations in Missouri and Texas. The Company's balance sheet at Sept. 30, 2013, showed $3.67 billion in total assets, $3.40 billion in total liabilities and $268.43 million in total stockholders' equity. For the year ended Dec. 31, 2013, the Company reported operating income of $196.08 million on $1.02 billion of net revenues as compared with operating income of $56.93 million on $1 billion of net revenues in 2012. * * * Standard & Poor's Ratings Services in October 2011 affirmed is 'B' corporate credit rating on Cumulus Media. "The ratings reflect continued economic weakness and higher post- acquisition leverage than we initially expected," said Standard & Poor's credit analyst Jeanne Shoesmith. "They also reflect the combined company's sizable presence in both large and midsize markets throughout the U.S." As reported by the TCR on April 3, 2013, Moody's Investors Service downgraded Cumulus Media, Inc.'s Corporate Family Rating to B2 from B1 and Probability of Default Rating to B2-PD from B1-PD. The downgrades reflect Moody's view that the pace of debt repayment and delevering will be slower than expected. Although EBITDA for 4Q2012 reflects growth over the same period in the prior year, results fell short of Moody's expectations. DELPHI AUTOMOTIVE: May Be Dragged in GM Recall Issue ---------------------------------------------------- Dustin Walsh at Crain's Detroit Business reports that General Motor's ignition recall may haunt Delphi Automotive plc. Mr. Walsh wrote that a faulty part in as many as 1.6 million vehicles could ignite legal and financial calamity for Delphi if it is held responsible for the actions of its bankrupt predecessor. The supplier of the defective ignition switch at the center of a massive recall, investigation and public shaming of General Motors could face mounting scrutiny over the hot-button issue. However, the unanswered questions in the inquiry has left legal experts unsure of Delphi's plight. The article is available at http://is.gd/m5MQl6from Crain's. According to Mr. Walsh, Delphi, as well as GM, is protected under Chapter 11 bankruptcy code from certain product liability obligations that occurred before they emerged from bankruptcy, but it still may not be able to avoid penalties, experts say. The issue comes down to whether the product liability discharge for bankrupt Delphi Corp. is upheld in the face of civil suits and potential fraud under a criminal investigation. "This is relatively unprecedented and will make for a great law school class," said Mark Aiello, partner at Foley & Lardner LLP in Detroit, according to the Crain's report. "Forget about the complexity of a component that has failed. Now you have the complexity of federal investigations, bankruptcy, etc. "A lot of facts that are going to come out; it's not as simple as it seems," Aiello said. Crain's also reported that Judith Elkin, partner at New York City law firm Haynes and Boone LLP, said "This case is interesting, and the laws have always been murky in product liability . . . There's no question that Delphi will argue that they are free of any liability that happened before or during its bankruptcy proceeding, but that doesn't necessarily mean they are protected." Elkin represented Highland Capital Management LP in its unsuccessful bid to buy Delphi during its Chapter 11 case. According to Crain's, the belief among attorneys is that if GM pays out, Delphi will follow suit, either in civil cases or after GM seeks a payout for the defective part Delphi supplied. The report said civil plaintiff attorneys' first line of attack against GM is to ask U.S. Bankruptcy Judge Robert Gerber to lift the liability discharge for GM on the grounds that the automaker knowingly deceived the judge by not informing the court about the ignition defect. A proposed class action has been filed in a federal court in California asking a judge to permit plaintiffs to sue GM "because of the active concealment by Old GM and GM," Reuters reported, according to Crain's. The lawsuit alleges that pre-bankruptcy GM knew about the ignition problems as early as 2001, continued to use the defective part until 2007 and that post-bankruptcy GM continued to deceive the public, Reuters reported. Crain's said Delphi's bankruptcy could also be reopened if the company is found to have deceived its judge about the issue as well. Elkin said that is unlikely to happen, but an appeals court could reopen the cases. The report said Richard Levin, partner at New York City law firm Cravath, Swaine & Moore LLP, said the issue could also play out in the state court system. "When a claimant tries to pursue a liability claim, they do it in state court, not bankruptcy court," Mr. Levin said. "State courts haven't always been as friendly to the free and clear ruling of bankruptcy court." Crain's, citing Bloomberg News, also reported that Clarence Ditlow, executive director of the Washington, D.C.-based Center for Auto Safety, has asked GM to set up a fund to resolve claims over the ignition defect. If GM pays any claimants, Delphi or its suppliers may come under target from the same claimants, said Tom Manganello, partner at Warner Norcross & Judd LP in Southfield. In this scenario, GM would likely settle with claimants on the condition they agree not to sue any of GM's suppliers, including Delphi, Mr. Manganello said. In turn, GM may seek to share the costs of the settlement with Delphi. About Delphi Corp. Based in Troy, Michigan, Delphi Corporation -- http://www.delphi.com/-- was a global supplier of electronics and technologies for automotive, commercial vehicle and other market segments. Delphi operated major technical centers, manufacturing sites and customer support facilities in 30 countries. The Company filed for Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 05-44481) on Oct. 8, 2005. John Wm. Butler Jr., Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represented the Debtors in their restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A. Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP, represented the Official Committee of Unsecured Creditors. As of June 30, 2008, the Debtors' balance sheet showed US$9,162,000,000 in total assets and US$23,742,000,000 in total debts. The Court confirmed Delphi's plan on Jan. 25, 2008. The Plan was not consummated after a group led by Appaloosa Management, L.P., backed out from their proposal to provide US$2,550,000,000 in equity financing to Delphi. At the end of July 2009, Delphi obtained confirmation of a revised plan, build upon a sale of the assets to a entity formed by some of the lenders who provided $4 billion of debtor-in-possession financing, and General Motors Company. On Oct. 6, 2009, Delphi's Chapter 11 plan of reorganization became effective. A Master Disposition Agreement executed among Delphi Corporation, Motors Liquidation Company, General Motors Company, GM Components Holdings LLC, and DIP Holdco 3, LLC, divides Delphi's business among three separate parties -- DPH Holdings LLC, GM Components, and DIP Holdco 3. Delphi emerged from Chapter 11 as DPH Holdings. DPH Holdings is responsible for the post-Effective Date administration and eventual closing of the Chapter 11 cases as well as the disposition of certain retained assets and payment of certain retained liabilities as provided under the Modified Plan. Delphi Automotive PLC is UK-based company formed in May 2011 as a holding company for US-based automotive parts manufacturer Delphi Automotive LLP. Delphi Automotive LLP is the successor to the former Delphi Corporation. At the time of its formation, Delphi Automotive PLC filed an initial public offering seeking to raise at least $100 million. DEMCO INC: Creditors' Panel Taps Amigone Sanchez as Counsel ----------------------------------------------------------- The Official Committee of Unsecured Creditors of Demco, Inc. seeks authorization from the U.S. Bankruptcy Court for the Western District of New York to retain Amigone, Sanchez & Mattrey, LLP as counsel, nunc pro tunc to Feb. 12, 2014. The Committee requires Amigone Sanchez to: (a) appear at hearings or in court on behalf of the Creditors Committee; (b) report to the Creditors Committee; (c) conduct Committee meetings; (d) conduct negotiations with the Debtor, secured creditors and unsecured creditors; (e) commence and conduct any and all litigation necessary or appropriate to asset rights held by the Creditors Committee; and (f) perform any other necessary or appropriate legal services in connection with this Chapter 11 case for or on behalf of the Creditors Committee. Amigone Sanchez will be paid at these hourly rates: Arthur G. Baumeister, Jr. $300 Associate $150 Lawyers $150-$300 Amigone Sanchez will also be reimbursed for reasonable out-of- pocket expenses incurred. Arthur G. Baumeister, member of Amigone Sanchez, 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. Amigone Sanchez can be reached at: Arthur G. Baumeister, Jr., Esq. AMIGONE, SANCHEZ & MATTREY, LLP 1300 Main Place Tower 350 Main Street Buffalo, NY 14202 Tel: (716) 852-1300 Fax: (716) 852-1344 E-mail: abaumeister@amigonesanchez.com About Demco Inc. Demco, Inc., aka Decommissioning & Environmental Management Company, is a specialty trade contractor based in West Seneca, New York, which provides demolition services, nuclear work, environmental clean-up, disaster response and a variety of other services throughout the United States and, on a project-by-project basis, internationally. Some of Demco's better known demolition projects in the past have included the Rocky Flats Nuclear Power Plant, Yankee Stadium, the Orange Bowl, Buffalo Memorial Auditorium, and the Sunflower Army Ammunition Plant. Demco filed for Chapter 11 protection (Bankr. W.D.N.Y. Case No. 12-12465) on Aug. 6, 2012. Bankruptcy Judge Michael J. Kaplan presides over the case. Daniel F. Brown, Esq., at Andreozzi, Bluestein, Fickess, Muhlbauer Weber, Brown, LLP, represents the Debtor in its restructuring effort. Freed Maxick CPAs, P.C. serves as its accountants, and Horizons Consulting, LLC, serves as its tax consultants. The Debtor estimated assets and debts at $10 million to $50 million. The petition was signed by Michael J. Morin, controller. Tracy Hope Davis, the U.S. Trustee for Region 2, appointed three creditors to serve on the Official Committee of Unsecured Creditors. First Niagara Bank, the cash collateral lender, is represented by William F. Savino, Esq., at Damon Morey. DENHAM HOMES: Ill. Judge Rules on Appeal Over Case Dismissal ------------------------------------------------------------ DENHAM HOMES, L.L.C., Appellant, v. TECHE FEDERAL BANK, N.A., Appellee, No. 13 C 00485 (N.D. Ill.), involves the appeal of an order issued by the U.S. Bankruptcy Court for the Northern District of Illinois dismissing the Chapter 11 case of Denham Homes, L.L.C., and a motion to dismiss Denham's appeal as moot by its primary creditor, Teche Federal Bank. Denham Homes was the developer and owner of roughly 103 acres of real property in Denham Springs, Louisiana. Denham planned to develop the Property into a 276-lot planned residential subdivision called Crystal Lakes. Unfortunately, Denham did not fare well in completing the project, despite having obtained approximately $5.6 million in financing and a line of credit from Teche Federal Bank, Denham's primary creditor. On Jan. 28, 2010, Denham initiated a bankruptcy case in the Northern District of Illinois by filing a voluntary petition for reorganization under Chapter 11 of the Bankruptcy Code. Teche and Denham eventually entered into a settlement agreement concerning Denham's reorganization. A Fourth Amended Plan of Reorganization that incorporated the terms of their settlement agreement was filed on April 11, 2011, and confirmed by the Bankruptcy Court on April 21, 2011. The effective date of the Plan was May 6, 2011. Denham's motion for final decree was granted and the bankruptcy case was closed on Nov. 17, 2011. The Plan provided that Denham's reorganization would be funded through the sale of the undeveloped home sites on the Property. The Plan categorized Denham's pre-petition debt into separate classes of claims, each of which would be treated differently over the course of Denham's planned reorganization. Teche held a Class 2 Claim, which was a fully secured, interest-bearing claim in the principal amount of $5,451,697.45, plus $150,000 in fees and costs. Teche also held a Class 10 Claim in the amount of $764,086.39 that was to be paid from the proceeds of the sale of five model homes built on the Property. Seven creditors with mechanics lien claims held the Class 3-9 Claims, which totaled $410,821 in aggregate. There were no Class 11 Claims, which were defined by the Plan as any other allowed claim secured by an interest in the Property. The Class 12 Claims comprise several unsecured claims, including one that was then the subject of active litigation in Louisiana at the time the Plan was filed. Diversified held an unsecured Class 13 Claim. Anderson Associates LP, which is controlled by Denham's principal William Spatz, held an unsecured Class 14 Claim. The Plan set out a schedule for how the proceeds would be distributed to the various classes as sales of home sites progressed. Initially, 50% of the proceeds from each lot sold would be paid to Teche's Class 2 Claim and 50% would be paid pro rata to the Class 3-9 and Class 11 Claims. After the Class 3-9 and Class 11 Claims were paid off, 70% of the proceeds from each subsequent lot sale would be paid to Teche's Class 2 Claim, with the remaining 30% paid to Teche's Class 10 Claim. The Plan provided that Anderson's Class 14 Claim would be paid from home site proceeds only after all other allowed claims were paid in full. The Plan also set a schedule of benchmarks for Denham's planned lot sales and payments to its creditors. By the first anniversary of the Plan's effective date, Denham was to have sold at least forty home sites and collected proceeds of at least $1,080,000, and was to have sold 15 undeveloped acres of the Property for at least $165,000. By the second anniversary, Denham agreed to have sold at least 90 home sites for at least $2,680,000. By the third anniversary, Denham agreed to have sold at least 140 home sites for at least $4,380,000. The benchmarks for the fourth anniversary were 180 home sites for $6,232,000; by the fifth anniversary, Denham was to have sold the remaining developed home sites and collected at least $7,884,400. If Denham failed to meet any of the benchmarks, it would be in default under the Plan. Teche would then have the right to foreclose on its mortgage, and, according to the Plan, Denham would not to oppose the foreclosure. Denham proceeded to sell 19 home sites by Dec. 21, 2011, and to pay Teche 50% of the proceeds of those sales. Earlier that month, however, Teche had learned that the Class 3-9 Claims had been paid in full and canceled from the public records of Livingston Parish, Louisiana on Aug. 25, 2011, before the first lot in the Crystal Lakes subdivision had been sold. Thus began a hard-fought dispute between Teche and Denham about the effect of this payment and the cancellation of the liens. On Dec. 20, 2011, Denham told Teche that Anderson -- not Denham -- had paid the holders of the claims; then, on Dec. 27, 2011, Denham told Teche that it was Summa Associates, LLC, who purchased those claims from the original lienholders. Teche demanded an accounting of what home site proceeds had been collected and applied to the Class 3-9 Claims. After objecting to the first accounting provided by Denham, Teche again demanded an accounting, this time requesting that Denham provide proof that the Class 3-9 Claims were paid, the amount paid to each claimant, the name of the entity that actually paid the claimants, and copies of the checks used to pay the Class 3-9 Claims. Denham then represented that Port Allen Associates, the principal of which is also Denham's principal, William Spatz, paid the claims and produced copies of cancelled checks that showed that Port Allen made the payments. Further investigation by Teche, however, revealed that the checks Denham produced never passed through Port Allen's bank account. Bank records showed that it was Anderson who paid the Class 3-9 Claims, as well as a Class 12 Claim, on Aug. 25, 2011. The dispute between Teche and Denham came to a head as Denham attempted to complete the home site sales necessary to meet the first anniversary benchmark. On April 17, 2012, Teche received a purchase agreement for the proposed sale of 21 home sites to Crystal Lakes, LLC. Teche, believing it was rightfully owed 70% of the proceeds of these sales because the holders of the Class 3-9 Claims had been paid, agreed to allow the sale of the lots and receive 50% of the proceeds if an additional 20% was put into escrow until the disagreement over the correct distribution was resolved. Denham rejected this proposal. After Teche and Denham agreed to extend the deadline for the first anniversary benchmark by 45 days, Denham then proposed a sale of 26 home sites, offering to disburse 70% of the proceeds to Teche -- which then countered by requesting 100% of the proceeds. In the end, Teche did not agree to remove its encumbrances on the Property, and Denham did not complete any additional sales. Teche provided Denham with a notice of default on July 18, 2012. The next day, Denham filed a motion to reopen its Chapter 11 case, which was granted on Aug. 27, 2012. Denham additionally moved to modify the Plan and to enforce payment of the claims provisions of the Plan; Teche objected to both motions. The motion to modify the Plan was eventually withdrawn by Denham and stricken from the record. The latter motion to enforce the payment provisions of the Plan was denied by the Bankruptcy Court after an evidentiary hearing. The Bankruptcy Court held that (1) Denham did not follow the terms of its confirmed plan of reorganization with regard to distributions made to Anderson from various property sales and (2) Teche properly refused to release its mortgage liens as to prospective property sale transactions as requested by Denham. Additionally, the Bankruptcy Court adopted Teche's proposed findings of fact and conclusions of law and closed Denham's Chapter 11 case pursuant to 11 U.S.C. Sec. 350(a), stating that the parties could "address any other or additional issues in the state courts in Louisiana, where [Denham's] real property is located." Denham appealed the Bankruptcy Court's decision. Denham argues that the Bankruptcy Court erred in concluding that Denham violated the terms of the Plan as well as in concluding that Teche was excused from its duty to release mortgage liens to permit Denham to close on sales to meet the Plan's benchmarks. While this dispute played out in the Bankruptcy Court, Denham failed to meet the first anniversary benchmarks under the Plan. Teche provided Denham a second notice of default on Nov. 28, 2012, and instituted foreclosure proceedings on the Property in Livingston Parish, Louisiana. A petition for executory process was filed on behalf of Teche on Dec. 18, 2012, and Denham was served with notices of seizure and to appoint an appraiser. Denham did not oppose the seizure and sale of the remaining Crystal Lakes property, which was sold to a third party at public auction on March 13, 2013 (while Denham's appeal was pending), for $3,901,000 in cash. The Sheriff of Livingston Parish filed a request for cancellation on March 19, 2013, which was recorded in the mortgage records and had the effect of canceling all encumbrances against the Property, including Teche's mortgage. Teche cites the sale as a basis for its motion to dismiss Denham's appeal. It argues that because Denham's reorganization was premised on its ability to sell home sites on the Property, the appeal is now moot. In a March 21, 2014 Memorandum Opinion and Order available at http://is.gd/s5pW4yfrom Leagle.com, District Judge John J. Tharp, Jr., the Court grants the motion to dismiss and vacates the Bankruptcy Court's order. Denham Homes LLC is represented by Frank P. Venis, Esq., at Venis & Copp LLP & Jonathan Todd Brand, Lakelaw. Teche Federal Bank is represented by Francis X. Buckley, Jr., Esq., at Thompson Coburn LLP. Chicago, Illinois-based Denham Homes, LLC, fka Spatz Homes, LLC, filed for Chapter 11 bankruptcy protection (Bankr. N.D. Ill. Case No. 10-03164) on Jan. 28, 2010. Daniel A. Zazove, Esq., and Kathleen A. Stetsko, Esq., at Perkins Coie LLP, assisted the Company in its restructuring effort. The Company listed $10 million to $50 million in assets and liabilities. DETROIT, MI: Area Water Authority Talks Hit Cutoff -------------------------------------------------- Nolan Finley, writing for Detroit News, reported that Kevyn Orr's hopes of leasing the Detroit Water and Sewerage Department to a regional authority are on life support, as both the city and suburbs are striking much more adversarial stances. According to the report, the Detroit emergency manager has sent notices to Wayne, Oakland and Macomb counties that he is ending negotiations on an authority until the three counties are aligned in their positions. Oakland and Macomb oppose the authority as proposed by Orr; Wayne County supports its creation, with reservations. "In the meantime, the city is going to explore other options," the report said, citing Orr's spokesman, Bill Nowling. The options Orr spelled out include either selling the city-owned water system or leasing it to a private management firm, the report related. Meanwhile, Oakland County is lawyering up to protect its residents from sharing in the cost of Detroit's bankruptcy. 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. The Hon. Steven Rhodes oversees the bankruptcy case. 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. Lazard Freres & Co. LLC serves as the Retiree Committee's financial advisor. DETROIT, MI: Asks U.S. Court to Consolidate Bankruptcy Appeals -------------------------------------------------------------- Reuters reported that Detroit asked a federal appeals court to consolidate seven cases seeking to overturn a December ruling that found the city was eligible for Chapter 9 municipal bankruptcy protection. According to the report, in a motion, Detroit asked the Sixth Circuit U.S. Court of Appeals to force the parties, including the city's two pension funds, labor unions and retiree groups, to file in one lead case or to jointly file a principal brief accompanied by short individual briefs. "Each of the appellants has the same interest - overturning the bankruptcy court's determination that the city is unconditionally eligible to proceed under chapter 9," the report related, citing Detroit's motion. "Moreover, the appellants raise largely the same legal challenges to that determination." The parties that filed the appeals had mixed reactions to consolidation, according to the city's motion, the report further related. If consolidation of the appeals is not granted, the city asked the appeals court to give it more time to respond to the appeals by pushing the deadline the court set earlier this month to June 17 from May 27, the report said. 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. The Hon. Steven Rhodes oversees the bankruptcy case. 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. Lazard Freres & Co. LLC serves as the Retiree Committee's financial advisor. DETROIT, MI: Bankruptcy Means Long Waits for Bus Riders ------------------------------------------------------- Matthew Dolan, writing for The Wall Street Journal, reported that for legions of carless in the Motor City, the buses are running on fumes. The report related that when the Number 53 along one of the city's busiest thoroughfares wheezily pulled into a crowded stop on a bitterly cold afternoon recently, a gray-haired woman in a pink knit cap immediately lodged a complaint. "We have been waiting almost an hour and a half out here," she told driver Raymond Muse as she boarded the bus on Woodward Avenue, the report said. And then, as if her message hadn't been heard, the woman, who declined to provide her name, repeated: "An hour and one half I've been waiting." Frustration over dysfunctional public transportation in this bankrupt city is a daily reminder of how often the rubber on Detroit's public services fails to meet the road, residents and city officials say, the report further related. Many Detroiters have little choice in the matter: High unemployment and expensive auto-insurance rates keep a growing number of residents from owning their own car, making bus service a necessity in a city of 139 square miles with no rail system, save for an elevated, three-mile monorail that loops around downtown, the report said. 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. The Hon. Steven Rhodes oversees the bankruptcy case. 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. Lazard Freres & Co. LLC serves as the Retiree Committee's financial advisor. DIOCESE OF HELENA: Taps Michael Hogan as Victims Representative --------------------------------------------------------------- The Roman Catholic Bishop of Helena, Montana, asks the U.S. Bankruptcy Court for permission to employ Michael R. Hogan as the legal representative in this case for these persons holding Claims against the Debtor: Persons holding Claims against the Debtor resulting or arising, in whole or in part, from any actual or alleged sexual conduct or misconduct, sexual abuse or molestation, indecent assault and/or battery, rape, lascivious behavior, undue familiarity, pedophilia, ephebophilia, or sexually-related physical, psychological, or emotional harm, or contacts or interactions of a sexual nature between a child and an adult, or a nonconsenting adult and another adult, assault, battery, corporal punishment, or other act of physical, psychological, or emotional abuse, humiliation, or intimidation or any other misconduct and seeking monetary damages or any other relief, under any theory of liability, including vicarious liability, any negligence-based theory or other theory based on any acts or failures to act by the Debtor or any other person who the Debtor is allegedly responsible for, who neither timely file nor are deemed to have timely filed (e.g., due to excusable neglect) a proof of claim on or before the Claims Bar Date or files a proof of claim after the Claims Bar Date; and: (a) are under 18 years of age before the Claims Bar Date; (b) neither discovered nor reasonably should have discovered Before the Claims Bar Date that his or her injury was caused by an act of childhood abuse; or (c) have a claim that was barred by the applicable statute of Limitations as of the Claims Bar Date but is no longer barred by the applicable statute of limitations for any reason, including for example the passage of legislation that revives such claims. Michael R. Hogan attests that it is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. About the Diocese of Helena The Roman Catholic Bishop of Helena, Montana, a Montana Religious Corporation Sole (a/k/a Diocese of Helena) sought protection under Chapter 11 of the Bankruptcy Code on Jan. 31, 2014, to resolve more than 350 sexual-abuse claims. The Chapter 11 case (Bankr. D. Mont. Case No. 14-60074) was filed in Butte, Montana. Attorneys at Elsaesser Jarzabek Anderson Elliott & MacDonald, Chtd., serve as counsel to the Debtor. The Diocese estimated assets of $1 million to $10 million and debt of $10 million to $50 million. Several Roman Catholic dioceses in the U.S. have filed for bankruptcy to settle claims from current and former parishioners who say they were sexually molested by priests. (Catholic Church Bankruptcy News; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) William Driscoll of the law firm Franz & Driscoll PLLP is the Debtor's special counsel. DUNE ENERGY: Incurs $46.9 Million Net Loss in 2013 -------------------------------------------------- Dune Energy, Inc., filed with the U.S. Securities and Exchange Commission its annual report on Form 10-K disclosing a net loss of $46.98 million on $55.50 million of total revenues for the year ended Dec. 31, 2013, following a net loss of $7.85 million on $52.14 million of total revenues in 2012. Dune Energy incurred a net loss of $60.41 million in 2011. As of Dec. 31, 2013, the Company had $249.50 million in total assets, $126.65 million in total liabilities and $122.84 million in total stockholders' equity. A copy of the Form 10-K is available for free at: http://is.gd/qm703B About Dune Energy Dune Energy, Inc. (NYSE AMEX: DNE) -- http://www.duneenergy.com/ -- is an independent energy company based in Houston, Texas. Since May 2004, the Company has been engaged in the exploration, development, acquisition and exploitation of natural gas and crude oil properties, with interests along the Louisiana/Texas Gulf Coast. The Company's properties cover over 90,000 gross acres across 27 producing oil and natural gas fields. E3 BIOFUELS: Suit Over Ruinous Blast Found Time-Barred ------------------------------------------------------ Law360 reported that a Nebraska federal judge threw out ethanol fuel maker E3 Biofuels LLC's breach of contract claims against contractors the company alleged caused an explosion and an estimated $60 million in damages at a plant that drove its predecessor to bankruptcy, ruling the claims were time-barred. According to the report, in an 18-page opinion, U.S. District Judge Laurie Smith Camp wrote that E3's lawsuit against contractors including Biothane Corp. and Perennial Energy Inc. was filed well after Nebraska's two-year statute of limitations on claims of professional negligence had run. The case is E3 Biofuels, LLC v. Biothane Corporation et al., Case No. 8:11-cv-00044 (D. Neb.). The case was filed on February 7, 2011. About E3 BioFuels Headquartered in Shawnee, Kansas E3 BioFuels LLC -- http://www.e3biofuels.com/-- produces ethanol and is a subsidiary of Earth, Energy & Environment LLC. It was founded by chief executive officer Dennis Langley. E3 BioFuels projects, including the Genesis plant in Mead, Nebraska, are owned exclusively by E3 BioFuels-Mead LLC, an affiliate. The Mead plant opened in June, and was hailed as a model for improving the environment and for fighting global warming. It is the first plant to have a "closed- loop" system, which uses manure from 28,000 head of cattle in a nearby feedlot to make methane that fueled the plant. Distillers grain, a byproduct of ethanol production, was then fed to the cattle. E3 BioFuels-Mead LLC and E3 Biofuels Mead Holding LLC filed for Chapter 11 protection on November 30, 2007 (Bankr. D. Kan. Case Nos. 07-22733 and 07-22734). Carl R. Clark, Esq., and Jeffrey A. Deines, Esq., at Lentz & Clark PA represent the Debtors in their restructuring efforts. When the Debtors filed for bankruptcy, they listed assets and debts between $1 million and $100 million. EDISON MISSION: Withdraws Motion to Estimate EIX Disputed Claims ---------------------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of Illinois has authorized Edison Mission Energy, et al., to withdraw the motion to estimate disputed claims. As reported by the Troubled Company Reporter on Jan. 17, 2014, the Debtors asked the Court for a prompt estimation of certain proofs of claim filed by the Debtors' parent Edison International and its non-debtor affiliates, including Southern California Edison, Edison Mission Group, and Mission Energy Holding Company, for the purposes of limiting the amount the Debtors must allocate in reserve for these contingent, unliquidated claims, setting the maximum amount for allowance on account of the claims, for voting purposes, and for distributions. Specifically, the Debtors asked the Court to (a) estimate the EIX Pension Claims, the EIX Other Benefit Plan Claims, and the PBGC Claims at $0; and (b) order that no amounts will be reserved on account of these claims. The Debtors also said related proofs of claim filed by the Pension Benefit Guaranty Corporation, and the Internal Revenue Service be estimated at $0. About Edison Mission Santa Ana, California-based Edison Mission Energy is a holding company whose subsidiaries and affiliates are engaged in the business of developing, acquiring, owning or leasing, operating and selling energy and capacity from independent power production facilities. EME also engages in hedging and energy trading activities in power markets through its subsidiary Edison Mission Marketing & Trading, Inc. EME was formed in 1986 and is an indirect subsidiary of Edison International. Edison International also owns Southern California Edison Company, one of the largest electric utilities in the United States. EME and its affiliates sought Chapter 11 protection (Bankr. N.D. Ill. Lead Case No. 12-49219) on Dec. 17, 2012. EME has reached an agreement with the holders of a majority of EME's $3.7 billion of outstanding public indebtedness and its parent company, Edison International EIX, that, pursuant to a plan of reorganization and pending court approval, would transition Edison International's equity interest to EME's creditors, retire existing public debt and enhance EME's access to liquidity. The Company's balance sheet at Sept. 30, 2012, showed $8.17 billion in total assets, $6.68 billion in total liabilities and $1.48 billion in total equity. In its schedules, Edison Mission Energy disclosed total assets of assets of $5,721,559,170 and total liabilities of $6,202,215,094 as of the Petition Date. The Debtors, other than Camino Energy Company, are also represented by James H.M. Sprayregen, P.C., Sarah Hiltz Seewer, Esq., and Seth A. Gastwirth, Esq., at Kirkland & Ellis LLP, in Chicago, Illinois; and Joshua A. Sussberg, Esq., at Kirkland & Ellis LLP, in New York. Debtor Camino Energy Company is represented by David A. Agay, Esq., and Joshua Gadharf, Esq., at McDonald Hopkins LLC, in Chicago, Illinois. Perella Weinberg Partners is acting as the Debtors' financial advisor and McKinsey & Company Recovery and Transformation Services is acting as restructuring advisor. GCG, Inc., is the claims and notice agent. An official committee of unsecured creditors has been appointed in the case and is represented by Ira S. Dizengoff, Esq., Stephen M. Baldini, Esq., Arik Preis, Esq., and Robert J. Boller, Esq., at Akin Gump Strauss Hauer & Feld LLP in New York; James Savin, Esq., and Kevin M. Eide, Esq., at Akin Gump Strauss Hauer & Feld LLP in Washington, DC; and David M. Neff, Esq., and Brian Audette, Esq., at Perkins Coie LLP. The Committee also has tapped Blackstone Advisory Partners as investment banker and FTI Consulting as financial advisor. EME's Joint Plan of Reorganization provides for the sale of all or substantially all of Debtors MWG, EME, and Midwest Generation EME, LLC, will be sold to NRG Energy, Inc. The Plan was confirmed on March 11, 2014. EDWIN WATTS GOLF: Seeks Until June 2 to File Exit Plan ------------------------------------------------------ EWGS Intermediary LLC and Edwin Watts Golf Shops ask the Court to extend its exclusive period to file a reorganization plan to June 2, 2014, and its exclusive solicitation period to August 1, 2014. Michael W. Yurkewicz, Esq., at Klehr Harrison Harvey Branzburg LLP, in Wilmington, Delaware, says that EWGS needs the extension because, among other things, the cases are large and complex. EWGS simultaneously undertook multiple strategies to liquidate its assets including an on-going store closing sale process, explains Mr. Yurkewicz. Mr. Yurkewicz adds that EWGS have worked diligently over the past few months to maximize the value of its assets and have been in regular communication with creditors and lenders. EWGS has exclusive right to submit a plan up to 120 days after it filed for Chapter 11. A debtor could request for an extension upon presenting sufficient cause to Court. About EWGS Intermediary EWGS Intermediary and Edwin Watts Golf Shops, which operate as an integrated, multi-channel retailer, offering brand name golf equipment, apparel and accessories, filed for Chapter 11 protection on Nov. 4, 2013 (Bankr. D. Del. Lead Case No. 13-12876). They are represented by Domenic E. Pacitti, Esq., and Michael W. Yurkewicz, Esq., at Klehr Harrison Harvey Branzburg LLP, in Wilmington, Delaware. The Debtors tapped Bayshore Partners LLC as their investment banker, FTI Consulting, LLC, as their financial advisors, and Epiq Bankruptcy Solutions, LLC, as claims and noticing agent. PNC Bank, National Association, the DIP Agent, is represented by Regina Stango Kelbon, Esq., at Blank Rome LLP, in Wilmington, Delaware. Lawrence C. Gottlieb, Esq., Jay R. Indyke, Esq., Brent Weisenberg, Esq., at Cooley LLP, serve as lead counsel to the Official Committee of Unsecured Creditors. Michael J. Merchant, Esq., Christopher M. Samis, Esq., and William A. Romanowies, Esq., at Richards, Layton & Finger, P.A. serve as Delaware counsel. The Committee hired PricewaterhouseCoopers LLP as its financial adviser. The Debtors said total assets are greater than $100 million. In its schedules, EWGS Intermediary disclosed $0 in assets and $77,801,784 in total liabilities. Hilco Merchant Resources, a unit of Hilco Global, on Dec. 5, 2013, disclosed that it has completed a $40 million deal to purchase all the assets of golf retail brand Edwin Watts, in partnership with GWNE, Inc., an affiliate of Worldwide Golf Shops. The transaction was approved by the bankruptcy court and closed on Dec. 5. ELBIT IMAGING: Consummates Debt Restructuring --------------------------------------------- Elbit Imaging Ltd. said that the closing of the the plan of arrangement with its unsecured financial creditors took place on Feb. 20, 2014. As part of the Arrangement, 509,713,459 ordinary shares were issued to the Company's unsecured financial creditors, out of which 9,090,122 ordinary shares were issued at the Closing and deposited in trust for the benefit of Bank Leumi Le Israel B.M., due to the ongoing dispute between the Company and Bank Leumi regarding the validity of certain pledges registered in Bank Leumi's favor. Immediately following the Closing, as contemplated by the Arrangement, (i) the closing of the refinancing agreement between the Company and Bank Hapoalim B.M. as described in the Company's announcements on Nov. 14, 2013, Nov. 26, 2013, and Dec. 30, 2013, was held, at which 16,594,036 ordinary shares were issued to Bank Hapoalim, and (ii) the warrant to purchase ordinary shares of the Company issued to Eastgate Property LLC, as described in the Company's announcement on Sept. 25, 2011, and amended as described in the Company's announcement on April 6, 2012, was exercised for 1,924,215 ordinary shares and terminated. Following the Closing, the issued and outstanding share capital of the Company consists of 553,134,519 ordinary shares and the total corporate level debt (excluding the disputed debt to Bank Leumi) amounted to NIS835 million ($237 million) and consists of the following: * NIS 448 million (approximately $127 million) aggregate principal amount of Series H notes and NIS 218 million (approximately $62 million) aggregate principal amount of Series I notes (out of which approximately NIS 8 million principal amount of Series H notes and approximately NIS 3.9 million principal amount of Series I notes were issued at the Closing and deposited in trust for the benefit of Bank Leumi due to the abovementioned dispute); and * Approximately $48 million (approximately NIS 169 million) principal amount of secured debt to Bank Hapoalim under the Refinancing Agreement. The creation and registration of collateral securing the Series H and Series I notes is scheduled to be completed within 45 business days following the Closing. About Elbit Imaging Ltd. 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 endeavored 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. ELBIT IMAGING: Court Rejects Liquidation Request ------------------------------------------------ The Tel Aviv District Court rejected the liquidation request of the trustees of Elbit Imaging Ltd.'s Series B Notes. About Elbit Imaging Ltd. 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 endeavored 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. ENNIS COMMERCIAL: Colliers Tingey Okayed as Real Estate Broker -------------------------------------------------------------- The Bankruptcy Court authorized David Stapleton -- the Plan Administrator appointed pursuant to the Plan of Liquidation of Ben Ennis dated Dec. 14, 2012 -- to employ John Hale and Colliers Tingey International, Inc., as its real estate broker to liquidate real properties. Kurt F. Vote, Esq., at Wanger Jones Helsley PC, on behalf of creditors Daryl Nicholson, etc. et al., and Keith Watkins, etc., et al., objected on Feb. 11, 2014, to the application stating that (i) the counsel has conflict of interest that does not permit him to act as a "disinterested person", and (ii) and the proposed terms of compensation are excessive and higher than that which the Plan Administrator would need to pay to retain an experienced broker in the area. On Feb. 26, Rene Lastreto, II, Esq., at Lang, Richert & Patch, on behalf of the Plan Administrator, appointed pursuant to the Plan of Liquidation of Ben Ennis dated Dec. 14, 2012, replied to the opposition to employ real estate broker. Mr. Lastreto said that the objection filed by Daryl Nicholson and Keith Watkins was simply an extension of their efforts in accordance with their long standing attempts to frustrate the economic and efficient administration of the Debtor Ben Ennis' bankruptcy estate to the detriment of legitimate creditors. Mr. Lastreto added that Colliers does not have a disqualifying conflict of interest, and the proposed rate of compensation for Colliers is reasonable under the circumstances. The Plan Administrator, in his application dated Jan. 29, said that he needed a real estate broker to sell real properties in furtherance and discharge of the Plan Administrator's duties. The compensation will be paid in the form of either a 4% or 5% commission without cooperating broker or 5% or 6% commission with a cooperating broker depending on the real property, to be paid from the purchase price from the sale of each real property through escrow. To the best of the Plan Administrator's knowledge, the firm is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. About Ennis Commercial Porterville, California-based Ennis Commercial Properties, LLC's business consists of acquiring raw land and building commercial developments. The Company then either operates or sells the commercial buildings comprising the commercial development. ECP is owned by Ben Ennis, Brian Ennis and Pamela Ennis, in equal shares. On Sept. 20, 2010, Pam Ennis and Brian Ennis transferred all of their ownership interests in ECP to Ben Ennis. ECP filed for Chapter 11 bankruptcy protection (Bankr. E.D. Cal. Case No. 10-12709) on March 16, 2010. Peter L. Fear, Esq., and Gabriel J. Waddell, Esq., at the Law Offices of Peter L. Fear, in Fresno, Calif., represent ECP as counsel. No creditors committee has been formed in the case. In its schedules, the Debtor disclosed $40,878,319 in assets and $43,922,485 in liabilities. Ben Ennis filed a voluntary petition under Chapter 11 (Bankr. E.D. Calif. Case No. 10-62315) on Oct. 25, 2010. On May 25, 2011, Terence Long was appointed as Chapter 11 Trustee in the Benn Ennis bankruptcy. Consequently, the Chapter 11 Trustee stands in the shoes of Ben Ennis, and holds all of the membership interests in ECP and controls it accordingly. Justin D. Harris, Esq., at Motschiedler, Michaelides, Wishon, Brewer & Ryan, LLP, in Fresno, represents the Chapter 11 Trustee as counsel. The plan of reorganization proposed by secured creditor Wells Fargo Bank for Ben Ellis was confirmed on June 27, 2013. David Stapleton was named plan administrator. ENNIS COMMERCIAL: Loeb Okayed as Plan Administrator's Tax Counsel ----------------------------------------------------------------- The Bankruptcy Court authorized David Stapleton -- the Plan Administrator appointed pursuant to the Plan of Liquidation of Ben Ennis dated Dec. 14, 2012 -- to employ Loeb & Loeb, LLP as tax counsel. Kurt F. Vote, Esq., at Wanger Jones Helsley PC, on behalf of creditors Daryl Nicholson, etc. et al., and Keith Watkins, etc., et al., objected on Feb. 26, 2014, to the application due to potential and actual conflict arising from Loeb's prior to representation of creditor Citizens Business Bank. On March 5, in his response to the objection, the Plan Administrator said the objection is no more than a continuation of their repeated attempts to frustrate the efficient administration of the Plan to the detriment of legitimate creditors. In an application dated Feb. 12, the Plan Administrator said that the grounds for his application are: 1. there is a need fox a tax attorney to assist the Plan Administrator in connection with the issues presented and arising in the post-confirmation phase of the Chapter 11 case, and the plan administrator's duties under the Plan; 2. it is necessary and essential for the Plan administrator to employ Tax counsel because of the extensive tax implication arising from transactions post-confirmation, including in connection with the liquidation of assets; and 3. Loeb has extensive tax experience with the case having represented the Citizens Business Bank in the Ben Ennis case and the case of Ennis Commercial properties, LLC. To the best of the Plan Administrator's knowledge, Loeb has no interest materially adverse to the interest of the estate. About Ennis Commercial Porterville, California-based Ennis Commercial Properties, LLC's business consists of acquiring raw land and building commercial developments. The Company then either operates or sells the commercial buildings comprising the commercial development. ECP is owned by Ben Ennis, Brian Ennis and Pamela Ennis, in equal shares. On Sept. 20, 2010, Pam Ennis and Brian Ennis transferred all of their ownership interests in ECP to Ben Ennis. ECP filed for Chapter 11 bankruptcy protection (Bankr. E.D. Cal. Case No. 10-12709) on March 16, 2010. Peter L. Fear, Esq., and Gabriel J. Waddell, Esq., at the Law Offices of Peter L. Fear, in Fresno, Calif., represent ECP as counsel. No creditors committee has been formed in the case. In its schedules, the Debtor disclosed $40,878,319 in assets and $43,922,485 in liabilities. Ben Ennis filed a voluntary petition under Chapter 11 (Bankr. E.D. Calif. Case No. 10-62315) on Oct. 25, 2010. On May 25, 2011, Terence Long was appointed as Chapter 11 Trustee in the Benn Ennis bankruptcy. Consequently, the Chapter 11 Trustee stands in the shoes of Ben Ennis, and holds all of the membership interests in ECP and controls it accordingly. Justin D. Harris, Esq., at Motschiedler, Michaelides, Wishon, Brewer & Ryan, LLP, in Fresno, represents the Chapter 11 Trustee as counsel. The plan of reorganization proposed by secured creditor Wells Fargo Bank for Ben Ellis was confirmed on June 27, 2013. David Stapleton was named plan administrator. ENNIS COMMERCIAL: Plan Administrator May Sell Belridge Property --------------------------------------------------------------- The Bankruptcy Court authorized David Stapleton -- the Plan Administrator appointed pursuant to the Plan of Liquidation of Ben Ennis dated Dec. 14, 2012 -- to sell 1277 Belridge Street No. 8B Oceano, California, to the Paul V. Rossitto Trust and the Barbara A. Rossitto Trust for $235,000. The Court also authorized the payment of a (i) 3% commission from the total purchase price to the Plan Administrator's real estate agent, Prudential California Realty through Barry Brown, and (ii) another 3% commission from the total purchase price to the buyer's real estate agent, Kevin Land, and (iii) customary closing costs. The sale is authorized free and clear of all liens, claims and interests, except for the liens of the County of San Luis Obispo (which will be paid through escrow), HA Devco, Inc. (which has provided a reconveyance) , and Wilbur D. and Linda Brown (for which reconveyance has been recorded.) About Ennis Commercial Porterville, California-based Ennis Commercial Properties, LLC's business consists of acquiring raw land and building commercial developments. The Company then either operates or sells the commercial buildings comprising the commercial development. ECP is owned by Ben Ennis, Brian Ennis and Pamela Ennis, in equal shares. On Sept. 20, 2010, Pam Ennis and Brian Ennis transferred all of their ownership interests in ECP to Ben Ennis. ECP filed for Chapter 11 bankruptcy protection (Bankr. E.D. Cal. Case No. 10-12709) on March 16, 2010. Peter L. Fear, Esq., and Gabriel J. Waddell, Esq., at the Law Offices of Peter L. Fear, in Fresno, Calif., represent ECP as counsel. No creditors committee has been formed in the case. In its schedules, the Debtor disclosed $40,878,319 in assets and $43,922,485 in liabilities. Ben Ennis filed a voluntary petition under Chapter 11 (Bankr. E.D. Calif. Case No. 10-62315) on Oct. 25, 2010. On May 25, 2011, Terence Long was appointed as Chapter 11 Trustee in the Benn Ennis bankruptcy. Consequently, the Chapter 11 Trustee stands in the shoes of Ben Ennis, and holds all of the membership interests in ECP and controls it accordingly. Justin D. Harris, Esq., at Motschiedler, Michaelides, Wishon, Brewer & Ryan, LLP, in Fresno, represents the Chapter 11 Trustee as counsel. The plan of reorganization proposed by secured creditor Wells Fargo Bank for Ben Ellis was confirmed on June 27, 2013. David Stapleton was named plan administrator. ENOVA SYSTEMS: To Sell 7 Million Common Shares to CEO ----------------------------------------------------- Enova Systems, Inc., and John Micek, the president and chief executive officer of Enova, orally agreed that Enova will sell to John Micek, and Mr. Micek agreed to purchase from Enova, on, or before, March 19, 2014, 7,000,000 shares of Enova's Common Stock at a purchase price of US $0.01 per share in consideration of $50,000 in cash and the conversion of $20,000 in debt. Mr. Micek is an "accredited" investor (as that term is defined under Regulation D promulgated by the Securities and Exchange Commission). The Shares are expected to be sold in a transaction exempt from the registration requirements under Section 5 of the Securities Act of 1933, as amended, pursuant to Section 4(2) thereof and in reliance upon Rule 506 of Regulation D promulgated by the SEC. About Enova Systems Torrance, Calif.-based Enova Systems, Inc., engages in the development, design and production of proprietary, power train systems and related components for electric and hybrid electric buses and medium and heavy duty commercial vehicles. In its report on the consolidated financial statements for the year ended Dec. 31, 2012, PMB Helin Donovan, LLP, in San Francisco, California, expressed substantial doubt about Enova Systems' ability to continue as a going concern, citing the Company's significant recurring losses and accumulated deficit. The Company reported a net loss of $8.2 million on $1.1 million of revenues in 2012, compared with a net loss of $7.0 million on $6.6 million of revenues in 2011. As of Sept. 30, 2013, the Company had $2.22 million in total assets, $5.94 million in total liabilities and a $3.72 million total stockholders' deficit. Bankruptcy warning On Dec. 12, 2012, a judgment was entered by the United States District Court Northern District of Illinois in favor of Arens Controls Company, L.L.C., in the amount of $2,014,169 regarding claims for two counts. In 2008, Arens Controls Company, L.L.C. filed claims against Enova with the United States District Court Northern District of Illinois. A Partial Settlement Agreement, as amended on Jan. 14, 2011, resolved certain claims made by Arens. However, the claims were preserved under two remaining counts concerning (i) anticipatory breach of contract by Enova for certain purchase orders that resulted in lost profit to Arens and (ii) reimbursement for engineering and capital equipment costs incurred by Arens exclusively for the fulfillment of certain purchase orders received from Enova. The Company filed a notice of appeal on Jan. 15, 2013. The Company believes the court committed errors leading to the verdict and judgment, and the Company is evaluating its options on appeal. "However, there can be no assurance that the appeal will be successful or a negotiated settlement can be attained or that Arens will assert its claim in the state of California, and thereby cause the Company to go into bankruptcy," the Company said in its quarterly report for the period ended March 31, 2013. EXPERT GLOBAL: May Need to Modify Loan Deals, Says Moody's ---------------------------------------------------------- Expert Global Solutions Inc. may need to modify loan covenants, Moody's Investors Service said in the course of lowering the corporate rating by one step to B3. Moody's said there is weakness in the accounts-receivable management segment because credit-card customers' clients are better managing their debt. Moody's predicts the company will have negative free cash flow in 2014. Revenue in 2013 was about $1.4 billion, Moody's said. The Marietta, Georgia-base company provides information technology and engineering services. It is a portfolio company controlled by One Equity Partners LLC, a private-equity investing arm of JPMorgan Chase & Co. FAIRMONT GENERAL: Hires Pachulski to Advise on Medicare Claims -------------------------------------------------------------- Fairmont General Hospital, Inc. and its debtor-affiliates seek authorization from the U.S. Bankruptcy Court for the Northern Districe of West Virginia to employ Pachulski Stang Ziehl & Jones LLP as special counsel, nunc pro tunc to Feb. 5, 2014. The legal services to be rendered by Pachulski Stang relate primarily to advising the Debtor with respect to the examination, negotiation, resolution, and objection to the Medicare and Medicaid-related claims in the Bankruptcy Case. The Firm's legal services will not ordinarily include appearances before any court or agency, other than the Bankruptcy Court, with respect to matters which are, in essence, disputes involving issues of non- bankruptcy law or the provision of substantive legal advice outside the insolvency area. Samuel R. Maizel will be the primary attorney participating in the representation of the Debtor, and his present hourly rate is $795. The Firm may also use other attorneys and paralegals as necessary and appropriate to represent the Debtor, and will delegate tasks among its attorneys in the most cost-efficient manner possible. Pachulski Stang will also be reimbursed for reasonable out-of- pocket expenses incurred. The Firm has agreed to make these adjustments to compensation: (a) the Firm will not seek compensation for services related to non-working travel time between Los Angeles, California and West Virginia, nor reimbursement for expenses related to such travel; (b) the Firm's monthly statements for services rendered will not exceed the lesser of: - the actual charges on such statement based on the Firm's hourly rates plus the Firm's expenses; or - the total attorney hours reflected on such statement multiplied by an hourly rate of $550, plus paraprofessional and research assistant fees and the Firm's expenses. Samuel R. Maizel, partner of Pachulski Stang, 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. Pachulski Stang can be reached at: Samuel R. Maizel, Esq. PACHULSKI STANG ZIEHL & JONES LLP 10100 Santa Monica Blvd., 13th Flr. Los Angeles, CA 90067-4003 Tel: (310) 772-2306 E-mail: smaizel@pszjlaw.com About Fairmont General Hospital Inc. Fairmont General Hospital Inc. and Fairmont Physicians, Inc., which operate a 207-bed acute-care facility in Fairmont, West Virginia, sought Chapter 11 bankruptcy protection (Bankr. N.D. W.Va. Case No. 13-01054) on Sept. 3, 2013. The fourth-largest employer in Marion County, West Virginia, filed for bankruptcy as it looks to partner with another hospital or health system. The Debtors are represented by Rayford K. Adams, III, Esq., and Casey H. Howard, Esq., at Spilman Thomas & Battle, PLLC, in Winston-Salem, North Carolina; David R. Croft, Esq., at Spilman Thomas & Battle, PLLC, in Wheeling, West Virginia, and Michael S. Garrison, Esq., at Spilman Thomas & Battle, PLLC, in Morgantown, West Virginia. The Debtors' financial analyst is Gleason & Associates, P.C. The Debtors' claims and noticing agent is Epiq Bankruptcy Solutions. Hammond Hanlon Camp, LLC, has been engaged as investment banker and financial advisor. UMB Bank is represented by Nathan F. Coco, Esq., and Suzanne Jett Trowbridge, Esq., at McDermott Will & Emery LLP. The Committee of Unsecured Creditors is represented by Andrew Sherman, Esq., and Boris I. Mankovetskiy, Esq., at Sills Cummis & Gross P.C. and Kirk B. Burkley, Esq., Bernstein Burkley, P.C. Janet Smith Holbrook, Esq., at Huddleston Bolen LLP, represents the Committee as local counsel. The Bankruptcy Court has named Suzanne Koenig at SAK Management Services, LLC, as patient care ombudsman. Ms. Koenig has hired her own firm as medical operations advisor; and Greenberg Traurig, LLP, as her counsel. The Debtors are engaged in the process of locating a buyer or strategic partner for the hospital, through the Debtors' investment bankers. The Debtors believe that by the end of March 2014 that process will be complete and a plan can be filed. The Debtors have scheduled $48,568,863 in total assets and $54,774,365 in total liabilities. FILENE'S BASEMENT: Hartz Mountain Strikes Deal to Purchase HQ ------------------------------------------------------------- Eliot Brown, writing for DBR Small Cap, reported that more than two years after discount retailer Syms Corp. filed for bankruptcy, its former headquarters and store in Secaucus, N.J., is set to be sold to New Jersey real estate giant Hartz Mountain Industries Inc., according to several people familiar with the deal. Syms successor Trinity Place Holdings Inc. and Hartz presented a plan in U.S. Bankruptcy Court in Wilmington, Del., the report said. About Filene's Basement Massachusetts-based Filene's Basement, also called The Basement, is the oldest off-price retailer in the United States. The Basement focuses on high-end goods and is known for its distinctive, low-technology automatic markdown system. Filene's Basement first filed for Chapter 11 bankruptcy protection in August 1999. Filene's Basement was bought by a predecessor of Retail Ventures, Inc., the following year. Retail Ventures in April 2009 transferred the unit to Buxbaum. Filene's Basement, Inc. and its affiliates filed for Chapter 22 (Bankr. D. Del. Case No. 09-11525) on May 4, 2009, represented by lawyers at Pachulski Stang Ziehl & Jones LLP. Epiq Bankruptcy Solutions serves as claims and notice agent. The Debtors disclosed assets of $236 million, including real estate of $97.7 million, and liabilities of $94 million, including $31.1 million owing on a revolving credit with Bank of America NA as agent. In addition, there were $11.1 million in letters of credit outstanding on the revolver. The 2009 Debtor was formally renamed FB Liquidating Estate, following the sale of all of its assets to Syms Corp. in June 2009. Pursuant to the Liquidating Plan confirmed in January 2010, secured creditors in the Chapter 11 case have been paid in full, and holders of priority, administrative and convenience class claims have received 100% of their allowed claims. As reported by the Troubled Company Reporter on Dec. 20, 2010, Alan Cohen, Chairman of Abacus Advisors LLC and Chief Restructuring Officer for FB Liquidating Estate disclosed that a second distribution of dividend checks to Filene's unsecured creditors amounting to 12.5% of approved claims has been made, bringing the cumulative distributions on unsecured claims to 62.5%. On Nov. 2, 2011, Syms Corp. placed itself, Filene's Basement and two other units in Chapter 11 bankruptcy (Bankr. D. Del. Case Nos. 11-13511 to 11-13514) after a failed bid to sell the business. The two units are Syms Clothing Inc. and Syms Advertising Inc. Judge Kevin J. Carey presides over the case. Lawyers at Skadden Arps Slate Meagher & Flom LLP serve as the Debtors' counsel. The Debtors tapped Rothschild Inc. as investment banker and Cushman and Wakefield Securities, Inc., as real estate financial advisors. Syms shuttered its namesake and Filene's Basement outlets upon the bankruptcy filing and tapped a joint venture of Gordon Brothers Retail Partners LLC and Hilco Merchant Resources LLC to run the going-out-of-business sales. The sale may continue until Jan. 31, 2012. Filene's Basement estimated $1 million to $10 million in assets and $50 million to $100 million in debts. The petitions were signed by Gary Binkoski, authorized representative of Filene's Basement. The official committee of unsecured creditors appointed in the 2011 case has retained Hahn & Hessen LLP as legal counsel. Holders of equity in Syms Corp. pushed for an official shareholders' committee and separation of the Syms and Filene's Basement bankruptcy estates. Gordon Brothers and Hilco are represented by Goulston & Storrs, P.C. and Ashby & Geddes, P.A. FIRST MARINER: Obtains Interim OK for Equity Transfer Procedures ---------------------------------------------------------------- The United States Bankruptcy Court for the District of Maryland entered an interim order establishing notification and hearing procedures for transfers of certain equity securities on Feb. 13, 2014. The Interim Order establishes notice procedures to govern certain transfers of First Mariner Bancorp's equity securities, as well as procedures for objecting to those transfers in certain circumstances, and provides that transfers of First Mariner Bancorp equity securities in violation of those procedures are void. A copy of the Interim Order is available for free at: http://is.gd/D8DsbJ About First Mariner Bancorp First Mariner Bancorp, the holding company for Maryland community bank 1st Mariner, filed for Chapter 11 bankruptcy on Feb. 10, 2014, in order to sell its bank subsidiary, 1st Mariner Bank, to a new bank formed by investors. The case is In re First Mariner Bancorp, Case No. 14-11952 (D. Md.) before Judge David E. Rice. The Debtor's bankruptcy counsel if KRAMER LEVIN NAFTALIS & FRANKEL LLP. The Debtor's local counsel is Lawrence Joseph Yumkas, Esq., at YUMKAS, VIDMAR & SWEENEY, LLC, in Annapolis, Maryland. The Debtor's regulatory and corporate counsel if KILPATRICK TOWNSEND & STOCKTON LLP. The Debtor's investment banker and financial adviser is SANDLER O'NEILL + PARTNERS, L.P. The Debtor has total assets of $5.45 million and total debts of $60.52 million. FREE LANCE-STAR: Panel Hires Hunton & Williams as Counsel --------------------------------------------------------- The Official Committee of Unsecured Creditors of The Free Lance- Star Publishing Co. of Fredericksburg, Va., et al., seeks authorization from the U.S. Bankruptcy Court for the Eastern District of Virginia to retain Hunton & Williams LLP as counsel to the Committee, effective Feb. 20, 2014. The Committee requires Hunton & Williams to: (a) assist, advise and represent the Committee in consultations with the Debtors regarding the administration of the Bankruptcy Case; (b) assist, advise and represent the Committee in analyzing the Debtors' assets and liabilities, including any mortgages, liens and other security interests in the Debtors' property, and participating in and reviewing any proposed asset sales, any asset dispositions, financing arrangements and cash collateral issues in connection with these proceedings; (c) assist, advise and represent the Committee in any manner relevant to reviewing and determining the Debtors' rights and obligations under its leases and executory contracts; (d) assist, advise and represent the Committee in investigating the acts, conduct, assets, liabilities and financial condition of the Debtors, the Debtors' operations and the desirability of the continuance of any portion of those operations, and any other matters relevant to the Bankruptcy Case or to the formation of a plan; (e) assist, advise and represent the Committee in its participation in the negotiation, formulation and drafting of a plan of liquidation or reorganization; (f) assist, advise and represent the Committee in understanding its powers and its duties under the Bankruptcy Code and the Bankruptcy Rules and in performing other services in the interests of those represented by the Committee; (g) assist, advise and represent the Committee in the evaluation of claims and on any litigation matters, including avoidance actions; and (h) provide such other services to the Committee as may be necessary or appropriate in the Debtors' Bankruptcy Case. Hunton & Williams will be paid at these hourly rates: Tyler P. Brown, Partner $695 Jason W. Harbour, Partner $585 Justin F. Paget, Associate $400 Shannon E. Daily, Associate $365 Matthew A. Lambert, Paralegal $205 Hunton & Williams will also be reimbursed for reasonable out-of- pocket expenses incurred. Tyler P. Brown, partner of Hunton & Williams, 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. The Court for the Eastern District of Virginia will hold a hearing on the application on April 9, 2014 at 11:00 a.m. Hunton & Williams can be reached at: Tyler P. Brown, Esq. HUNTON & WILLIAMS LLP 951 East Byrd Street Richmond, VA 23219 Tel: (804) 788-8674 Fax: (804) 788-8218 About The Free Lance-Star Publishing The Free Lance-Star Publishing Co. of Fredericksburg, Va., is a publishing, newspaper, radio and communications company based in Fredericksburg, Virginia and owned by the family of Josiah P. Rowe III. FLS's single, seven-day a week newspaper, The Free Lance- Star was first published in 1885 when a group of local Fredericksburg merchants and businessmen created the paper to serve the news and advertising needs of the community. FLS also owns radio stations WFLS-AM, FLS-FM, and WVBX. FLS owns the community and news portal http://www.fredericksburg.com/ FLS filed a Chapter 11 bankruptcy petition (Bankr. E.D. Va. Case No. 14-30315) in Richmond, Virginia, on Jan. 23, 2014. William Douglas Properties, L.L.C., a related entity that owns a portion of the land pursuant to which FLS operates certain aspects of its business, also sought bankruptcy protection. Judge Keith L. Phillips was initially assigned to the cases, but the cases were reassigned to Judge Kevin R. Huennekens on the Petition Date. The Debtors have tapped Tavenner & Beran, PLC, as counsel; and Protiviti, Inc., as financial advisor. Judge A. Robbins, U.S. Trustee for Region 4, appointed three members to the official committee of unsecured creditors. FREEDOM INDUSTRIES: Pres. Wants Pay for Work Since Filing --------------------------------------------------------- Jonathan Mattise, writing for The Associated Press, reported that the president of the company that spilled chemicals into 300,000 West Virginians' water supply wants to get paid for work during bankruptcy proceedings. According to the report, in court documents, Freedom Industries President Gary Southern requested an order to collect paychecks for work following the company's Jan. 17 bankruptcy filing. The documents say Southern earns a $230,000 salary, the report related. He last received a paycheck covering services through Jan. 19. Southern is requesting that his paychecks be negotiated and issued until Freedom can appoint a chief restructuring officer, the report further related. Court papers say he worked 46 straight days through Feb. 26. Court records show Freedom paid contractors that employed Southern about $5 million the year preceding the bankruptcy, the report said. About Freedom Industries Freedom Industries Inc., is engaged principally in the business of producing specialty chemicals for the mining, steel and cement industries. The Debtor operates two production facilities located in (a) Nitro, West Virginia; and (b) Charleston, West Virginia. The company, connected to a chemical spill that tainted the water supply in West Virginia, sought protection under Chapter 11 of the Bankruptcy Code (Bankr. S.D. W.Va. Case No. 14-bk-20017) on Jan. 17, 2014. The case is assigned to Judge Ronald G. Pearson. The petition was signed by Gary Southern, president. The Debtor is represented by Mark E Freedlander, Esq., at McGuire Woods LLP, in Pittsburgh, Pennsylvania; and Stephen L. Thompson, Esq., at Barth & Thompson, in Charleston, West Virginia. On Dec. 31, 2013, four companies merged under the umbrella of Freedom Industries: Freedom Industries Inc., Etowah River Terminal LLC, Poca Blending LLC and Crete Technologies LLC. As reported in the Troubled Company Reporter on Feb. 20, 2014, Kate White, writing for The Charleston Gazette, reported that the Debtor disclosed $16 million in assets and $6 million in liabilities when it filed for bankruptcy. On Feb. 5, 2014, the U.S. Trustee appointed an official committee of unsecured creditors. FREEDOM INDUSTRIES: Court Approves Frost Brown as Panel's Counsel ----------------------------------------------------------------- The Official Committee of Unsecured Creditors of Freedom Industries, Inc. sought and obtained authorization from the U.S. Bankruptcy Court for the Southern District of West Virginia to retain Frost Brown Todd LLC as counsel, nunc pro tunc to Feb. 13, 2014. The Committee requires Frost Brown to render legal services, including, but not limited to: (a) advise the Committee with respect to its powers, duties, and responsibilities in this case; (b) provide assistance in the Committee's investigation of the acts, conduct, assets, liabilities and financial condition of the Debtors, the operation of the Debtors' business and desirability of the continuances of such business, and any other matters relevant to the cases or to the negotiation and formulation of a plan; (c) prepare on behalf of the Committee all necessary pleadings and other documentation; (d) advise the Committee with respect to the Debtors' formulation of a plan, the Debtors' proposed plans with respect to the prosecution of claims against various third parties and any other matters relevant to the cases or to the formulation of a plan in these cases; (e) provide assistance, advice and representation, if appropriate, with respect to the employment of a Trustee or Examiner, should such action become necessary, or any other legal decision involving interests represented by the Committee; (f) represent the Committee in hearings and proceedings involving the Committee; and (g) perform other legal services as may be necessary and in the interest of the creditors and the Committee. Frost Brown intends to seek compensation based upon hourly billing rates that have been discounted by 20% from their normal hourly rates for purposes of this engagement. Frost Brown will also be reimbursed for reasonable out-of-pocket expenses incurred. Ronald E. Gold, member of Frost Brown, 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. Frost Brown can be reached at: Ronald E. Gold, Esq. FROST BROWN TODD LLC 3300 Great American Tower 301 East Fourth Street Cincinnati, OH 45202-4182 Tel: (513) 651-6800 Fax: (513) 651-6981 E-mail: rgold@fbtlaw.com About Freedom Industries Freedom Industries Inc., the company connected to a chemical spill that tainted the water supply in West Virginia, sought protection under Chapter 11 of the Bankruptcy Code (Bankr. S.D. W.Va. Case No. 14-bk-20017) on Jan. 17, 2014. The case is assigned to Judge Ronald G. Pearson. The petition was signed by Gary Southern, president. The Debtor is represented by Mark E Freedlander, Esq., at McGuire Woods LLP, in Pittsburgh, Pennsylvania; and Stephen L. Thompson, Esq., at Barth & Thompson, in Charleston, West Virginia. On Dec. 31, 2013, four companies merged under the umbrella of Freedom Industries: Freedom Industries Inc., Etowah River Terminal LLC, Poca Blending LLC and Crete Technologies LLC. As reported in the Troubled Company Reporter on Feb. 20, 2014, Kate White, writing for The Charleston Gazette, reported that the Debtor disclosed $16 million in assets and $6 million in liabilities when it filed for bankruptcy. On Feb. 5, 2014, the U.S. Trustee appointed an official committee of unsecured creditors. On March 18, 2014, the Bankruptcy Court approved Mark Welch at MorrisAnderson as CRO for the Debtor. FREEDOM INDUSTRIES: CRO Says Funds Could Be Down to $3MM by June ---------------------------------------------------------------- A DPost.com reported that Freedom Industries Chief Restructuring Officer Mark Welch estimated in bankruptcy court on March 18 that the company could be down to $2.5 million to $3 million in mid- June. He said the 51-employee company will cease business operations by the week's end. DPost.com said Anthony Majestro, one of the lawyers representing West Virginia businesses suing Freedom Industries, said that wouldn't leave much help for citizens hurt by the Jan. 9 spill. Bankruptcy Judge Ronald G. Pearson, who is overseeing the case, allowed Freedom to hire Mr. Welch of MorrisAnderson & Associates, despite concerns about Mr. Welch's pay rate, the report noted. Mr. Welch would receive over $72,000 a month for six weeks and $54,000 monthly afterward, and could hire another expert at $375 per hour, court documents state. The report said Mr. Welch has estimated he could net the Company $1 million by collecting payments due and finding savings during environmental cleanup. About Freedom Industries Freedom Industries Inc., is engaged principally in the business of producing specialty chemicals for the mining, steel and cement industries. The Debtor operates two production facilities located in (a) Nitro, West Virginia; and (b) Charleston, West Virginia. The company, connected to a chemical spill that tainted the water supply in West Virginia, sought protection under Chapter 11 of the Bankruptcy Code (Bankr. S.D. W.Va. Case No. 14-bk-20017) on Jan. 17, 2014. The case is assigned to Judge Ronald G. Pearson. The petition was signed by Gary Southern, president. The Debtor is represented by Mark E Freedlander, Esq., at McGuire Woods LLP, in Pittsburgh, Pennsylvania; and Stephen L. Thompson, Esq., at Barth & Thompson, in Charleston, West Virginia. On Dec. 31, 2013, four companies merged under the umbrella of Freedom Industries: Freedom Industries Inc., Etowah River Terminal LLC, Poca Blending LLC and Crete Technologies LLC. As reported in the Troubled Company Reporter on Feb. 20, 2014, Kate White, writing for The Charleston Gazette, reported that the Debtor disclosed $16 million in assets and $6 million in liabilities when it filed for bankruptcy. On Feb. 5, 2014, the U.S. Trustee appointed an official committee of unsecured creditors. GARLOCK SEALING: Ford Seeks Info to Fight Its Own Asbestos Suits ---------------------------------------------------------------- Daniel Fisher, writing for Forbes, reported that Ford Motor Co. has filed a motion to unseal the records in the Garlock bankruptcy case, hoping to obtain evidence it needs to derail asbestos lawsuits against itself. According to Forbes, in a motion and accompanying memorandum of law filed with the federal bankruptcy court in Charlotte, N.C., Ford is seeking access to sealed testimony and exhibits that Judge George R. Hodges relied upon to conclude that plaintiff lawyers had withheld evidence their clients had made conflicting statements about their asbestos exposure to different courts and bankruptcy trusts set up to pay claimants. The health insurer Aetna filed a similar motion last month, as part of its effort to determine whether it paid the medical expenses of plaintiffs who later recovered money for the same illness. Bill Rochelle, the bankruptcy columnist for Bloomberg News, reported that the Chamber of Commerce's Legal Newsline filed papers early in March asking Judge Hodges to unseal transcripts of the trial culminating in the January decision. Before the trial, Judge Hodges ruled that the proceedings would be closed to the public. Mr. Rochelle related that Legal Newsline said Judge Hodges's opinion made "misconduct by asbestos plaintiffs and their lawyers the focus of national debate." The official committee of Garlock asbestos claimants asked Judge Hodges to throw out Legal Newsline's March filing. According to the committee, the publication already has an appeal pending from the judge's decision to close the trial to the public and that should bar the publication from seeking the same relief. Ford, like many manufacturers, has been named in thousands of lawsuits as plaintiff lawyers mount an aggressive search for solvent defendants to sue, after most of the companies that made and sold dangerous asbestos products like pipe insulation have filed for bankruptcy protection to settle claims, Forbes related. Plaintiff lawyers target car manufacturers because they sold vehicles with brake pads containing asbestos. Epidemiological studies have failed to show that car mechanics have higher levels of mesothelioma, the cancer most closely associated with asbestos exposure, so Ford has an interest in showing that plaintiffs suing it for such cancers have claimed exposure to more dangerous substances elsewhere. In his January ruling slashing Garlock's asbestos-related liabilities to $125 million, Judge Hodges cited the results of an examination of 15 plaintiff files which found that lawyers had withheld potentially important evidence of asbestos exposure from each of them, Forbes further related. The judge stopped just short of calling the activity fraudulent, but said the process "was infected by the manipulation of exposure evidence by plaintiffs and their lawyers." Such manipulation is possible because plaintiff lawyers largely control the trusts asbestos manufacturers set up to pay claims, and those lawyers have maintained a system of confidentiality that allows them to tap numerous trusts, often with conflicting stories about how their clients got sick, without fear of having anybody match those claims up against each other, Forbes said. The secrecy also allows them to file lawsuits against solvent companies first and negotiate larger settlements than they otherwise might obtain by failing to acknowledge the more serious exposures their clients will later allege against the bankruptcy trusts. About Garlock Sealing Headquartered in Palmyra, New York, Garlock Sealing Technologies LLC is a unit of EnPro Industries, Inc. (NYSE: NPO). For more than a century, Garlock has been helping customers efficiently seal the toughest process fluids in the most demanding applications. On June 5, 2010, Garlock filed a voluntary Chapter 11 petition (Bankr. W.D.N.C. Case No. 10-31607) in Charlotte, North Carolina, to establish a trust to resolve all current and future asbestos claims against Garlock under Section 524(g) of the U.S. Bankruptcy Code. The Debtor estimated $500 million to $1 billion in assets and up to $500 million in debts as of the Petition Date. Affiliates The Anchor Packing Company and Garrison Litigation Management Group, Ltd., also filed for bankruptcy. Albert F. Durham, Esq., at Rayburn Cooper & Durham, P.A., represents the Debtor in their Chapter 11 effort. Garland S. Cassada, Esq., at Robinson Bradshaw & Hinson, serves as counsel for asbestos matters. The Official Committee of Asbestos Personal Injury Claimants in the Chapter 11 cases is represented by Travis W. Moon, Esq., at Hamilton Moon Stephens Steele & Martin, PLLC, in Charlotte, NC, Elihu Inselbuch, Esq., at Caplin & Drysdale, Chartered, in New York, and Trevor W. Swett III, Esq., Leslie M. Kelleher, Esq., and Jeanna Rickards Koski, Esq., in Washington, D.C. 20005. Joseph W. Grier, III, the Court-appointed legal representative for future asbestos claimants, has retained A. Cotten Wright, Esq., at Grier Furr & Crisp, PA, and Richard H. Wyron, Esq., and Jonathan P. Guy, Esq., at Orrick, Herrington & Sutcliffe LLP, as his co- counsel. Judge George Hodges of the United States Bankruptcy Court for the Western District of North Carolina on Jan. 10, 2014, entered an order estimating the liability for present and future mesothelioma claims against EnPro Industries' Garlock Sealing Technologies LLC subsidiary at $125 million, consistent with the positions GST put forth at trial. GENERAL MOTORS: Reports 3 More Recalls, "Redoubles" Safety Efforts ------------------------------------------------------------------ Jeff Green, writing for Bloomberg News, reported that General Motors Co. is recalling 1.55 million vans, sedans and sport- utility vehicles, citing concerns over brakes, seat belts and air bags, adding to 1.6 million cars recalled this year due to faulty ignition switches. The automaker also said it expects about $300 million in expenses in the first quarter to cover the cost of repairs for the more than 3 million vehicles, according to a statement on March 18, the report said. Delphi Automotive Plc, the auto supplier that was once part of GM, is adding a production line to expedite supply of replacement parts, Barra said in a video statement. The new round of recalls follows criticism that GM was slow to act on earlier concerns over vehicle safety, the report related. It took the automaker more than a decade to begin recalls on the Cobalt and other small cars that were the subject of complaints as early as 2003. The ignition switch defect threatens to harm GM's reputation and complicate efforts under Chief Executive Officer Mary Barra to recover from its 2009 bankruptcy. "They are trying to be responsive to the general issues that lead to recalls, however this doesn't really affect the matter at hand, which is the recall of the Cobalt" and other small cars, Alan Baum, an analyst at Baum & Associates in West Bloomfield, Michigan, told Bloomberg. "They can't undo the underlying problem, and that is the time lag from when this was determined internally, and when it was acted upon." GM discovered ignition-switch problems in 2001 while developing the Saturn Ion small car and thought it had addressed them before the model went into production, the Detroit-based company told regulators, the report said. The Ion, Cobalt and other small cars were recalled last month after the defective switches had been linked to at least 12 deaths. About Motors Liquidation General Motors Corporation and three of its affiliates filed for Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 09-50026) on June 1, 2009. The Honorable Robert E. Gerber presides over the Chapter 11 cases. Harvey R. Miller, Esq., Stephen Karotkin, Esq., and Joseph H. Smolinsky, Esq., at Weil, Gotshal & Manges LLP, assist the Debtors in their restructuring efforts. Al Koch at AP Services, LLC, an affiliate of AlixPartners, LLP, serves as the Chief Executive Officer for Motors Liquidation Company. GM is also represented by Jenner & Block LLP and Honigman Miller Schwartz and Cohn LLP as counsel. Cravath, Swaine, & Moore LLP is providing legal advice to the GM Board of Directors. GM's financial advisors are Morgan Stanley, Evercore Partners and the Blackstone Group LLP. Garden City Group is the claims and notice agent of the Debtors. The U.S. Trustee appointed an Official Committee of Unsecured Creditors and a separate Official Committee of Unsecured Creditors Holding Asbestos-Related Claims. Lawyers at Kramer Levin Naftalis & Frankel LLP served as bankruptcy counsel to the Creditors Committee. Attorneys at Butzel Long served as counsel on supplier contract matters. FTI Consulting Inc. served as financial advisors to the Creditors Committee. Elihu Inselbuch, Esq., at Caplin & Drysdale, Chartered, represented the Asbestos Committee. Legal Analysis Systems, Inc., served as asbestos valuation analyst. The Bankruptcy Court entered an order confirming the Debtors' Second Amended Joint Chapter 11 Plan on March 29, 2011. The Plan was declared effect on March 31. On Dec. 15, 2011, Motors Liquidation Company was dissolved. On the Dissolution Date, pursuant to the Plan and the Motors Liquidation Company GUC Trust Agreement, dated March 30, 2011, between the parties thereto, the trust administrator and trustee -- GUC Trust Administrator -- of the Motors Liquidation Company GUC Trust, assumed responsibility for the affairs of and certain claims against MLC and its debtor subsidiaries that were not concluded prior to the Dissolution Date. GULF FLEET: Trustee May Recoup $166,625 From Candy Fleet -------------------------------------------------------- Bankruptcy Judge Robert Summerhays ruled in favor of Alan Goodman, the Trustee of the Gulf Fleet Liquidating Trust, in his lawsuit against Candy Fleet, LLC (Bankr. W.D. La. Adv. Proc. No. 12- 05010), seeking preference claims under 11 U.S.C. Sec. 547(b) and avoidance of three payments made by Gulf Fleet to Candy Fleet totaling $166,625 during the 90-day preference period. Candy Fleet owns and operates sea vessels used primarily in the offshore oil and gas exploration industry. During the relevant time period, Candy Fleet leased its vessels through third-party brokers such as Gulf Fleet. A copy of the Court's March 21, 2014 Reasons For Decision is available at http://is.gd/oNtKOOfrom Leagle.com. About Gulf Fleet Lafayette, Lousiana-based Gulf Fleet Holdings, Inc. -- along with affiliates Star Marine, LLC; Gulf Wind, LLC; Gulf Service, LLC; Gulf Worker, LLC; Hercules Marine, LLC; Gulf Fleet, LLC; Gulf Fleet Marine, Inc.; Gulf Fleet Management, LLC; Gulf Fleet Offshore, LLC; and Gulf Ocean Marine Services, LLC -- filed for Chapter 11 bankruptcy protection on May 14, 2010 (Bankr. W.D. La. Case No. 10-50713). Gulf Fleet owned and operated a fleet of offshore and fast supply vessels that supported oil and gas exploration and production companies and other oilfield service companies. Gulf Fleet also operated an independent vessel brokerage business. Gulf Fleet estimated $100 million to $500 million in assets and $50 million to $100 million in debts in its Chapter 11 petition. In their schedules, affiliate Gulf Fleet, LLC, disclosed $2,088,277 in assets and $83,891,116 in liabilities; Gulf Fleet Management, LLC, disclosed $943,256 in assets and $45,071,399 in liabilities; and Gulf Ocean Marine Services, LLC, disclosed $15,777,138 in assets and $79,513,230 in liabilities. R. Michael Bolen, U.S. Trustee for Region 5 appointed seven members to the official committee of unsecured creditors. The Committee was represented by Alan H. Goodman, Esq., at Breazeale, Sachse & Wilson, L.L.P., and Hugh M. Ray, Jr., Esq., at Andrews & Kurth. GULF FLEET: May Avoid $117,519 in Transfers to Adriatic Marine -------------------------------------------------------------- ALAN GOODMAN, TRUSTEE OF THE GULF FLEET LIQUIDATING TRUST, Plaintiff, v. ADRIATIC MARINE, LLC, Defendant, Adv. Proc. No. 12-5009 (Bankr. W.D. La.), involves preference claims by the Gulf Fleet Liquidating Trustee against Adriatic Marine. In a March 21, 2014 Reasons for Decision available at http://is.gd/kdAKbifrom Leagle.com, Bankruptcy Judge Robert Summerhays finds in favor of the Trustee on his preference claim and finds that $117,519 of transfers are subject to avoidance under 11 U.S.C. Sec. 547(b). This amount excludes preference period transfers totaling $30,986 that are subject to the new value defense under 11 U.S.C. Sec. 547(c)(4). The court finds against Adriatic on its ordinary course defense. About Gulf Fleet Lafayette, Lousiana-based Gulf Fleet Holdings, Inc. -- along with affiliates Star Marine, LLC; Gulf Wind, LLC; Gulf Service, LLC; Gulf Worker, LLC; Hercules Marine, LLC; Gulf Fleet, LLC; Gulf Fleet Marine, Inc.; Gulf Fleet Management, LLC; Gulf Fleet Offshore, LLC; and Gulf Ocean Marine Services, LLC -- filed for Chapter 11 bankruptcy protection on May 14, 2010 (Bankr. W.D. La. Case No. 10-50713). Gulf Fleet owned and operated a fleet of offshore and fast supply vessels that supported oil and gas exploration and production companies and other oilfield service companies. Gulf Fleet also operated an independent vessel brokerage business. Gulf Fleet estimated $100 million to $500 million in assets and $50 million to $100 million in debts in its Chapter 11 petition. In their schedules, affiliate Gulf Fleet, LLC, disclosed $2,088,277 in assets and $83,891,116 in liabilities; Gulf Fleet Management, LLC, disclosed $943,256 in assets and $45,071,399 in liabilities; and Gulf Ocean Marine Services, LLC, disclosed $15,777,138 in assets and $79,513,230 in liabilities. R. Michael Bolen, U.S. Trustee for Region 5 appointed seven members to the official committee of unsecured creditors. The Committee was represented by Alan H. Goodman, Esq., at Breazeale, Sachse & Wilson, L.L.P., and Hugh M. Ray, Jr., Esq., at Andrews & Kurth. GULF FLEET: Trustee May Recoup $64,172 From Reama ------------------------------------------------- Bankruptcy Judge Robert Summerhays ruled in an adversary proceeding brought by Alan Goodman, Trustee of the Gulf Fleet Liquidating Trust against Reama, Inc., d/b/a G & M Welding and Fabricating. Mr. Goodman asserts preference claims under 11 U.S.C. Sec. 547(b) and seeks avoidance of payments made by Gulf Fleet to Reama totaling $85,121.86 during the 90-day preference period. Reama provided welding and repair services to Gulf Fleet from 2008 through 2010. In a March 21, 2014 Reasons For Decision available at http://is.gd/8OtDktfrom Leagle.com, the Court ruled in favor of Reama on its ordinary course defense under 11 U.S.C. Sec. 547(c)(2) with respect to $19,886.75 of the preference-period payments. Reama is also entitled to a new value defense with respect to an additional $1,062.50 of preference-period payments. The Trustee is entitled to judgment in the amount of $64,172.61 as well as pre-judgment and post-judgment interest. About Gulf Fleet Lafayette, Lousiana-based Gulf Fleet Holdings, Inc. -- along with affiliates Star Marine, LLC; Gulf Wind, LLC; Gulf Service, LLC; Gulf Worker, LLC; Hercules Marine, LLC; Gulf Fleet, LLC; Gulf Fleet Marine, Inc.; Gulf Fleet Management, LLC; Gulf Fleet Offshore, LLC; and Gulf Ocean Marine Services, LLC -- filed for Chapter 11 bankruptcy protection on May 14, 2010 (Bankr. W.D. La. Case No. 10-50713). Gulf Fleet owned and operated a fleet of offshore and fast supply vessels that supported oil and gas exploration and production companies and other oilfield service companies. Gulf Fleet also operated an independent vessel brokerage business. Gulf Fleet estimated $100 million to $500 million in assets and $50 million to $100 million in debts in its Chapter 11 petition. In their schedules, affiliate Gulf Fleet, LLC, disclosed $2,088,277 in assets and $83,891,116 in liabilities; Gulf Fleet Management, LLC, disclosed $943,256 in assets and $45,071,399 in liabilities; and Gulf Ocean Marine Services, LLC, disclosed $15,777,138 in assets and $79,513,230 in liabilities. R. Michael Bolen, U.S. Trustee for Region 5 appointed seven members to the official committee of unsecured creditors. The Committee was represented by Alan H. Goodman, Esq., at Breazeale, Sachse & Wilson, L.L.P., and Hugh M. Ray, Jr., Esq., at Andrews & Kurth. HAAS ENVIRONMENTAL: Can Access Cash Collateral Until May 31 ----------------------------------------------------------- The U.S. Bankruptcy Court for the District of New Jersey signed off on a consent order authorizing Haas Environmental, Inc., to use cash collateral on an interim basis until May 31, 2014. The consent order was entered among the Debtor, the Official Committee of Unsecured Creditors, Peoples United Equipment Finance Corp.; Commercial Credit Group Inc.; and Sovereign Bank. The consent order provides for, among other things: a. Peoples holds a first position lien against, inter alia, the Debtor's accounts, and cash collateral and several of the Debtor's pieces of equipment and vehicles. The balance owed to Peoples as of Jan. 24, is $2,713,307. b. CCG holds a second position lien against, inter alia, the Debtor's accounts and cash collateral, and a first lien position against several of the Debtor's pieces of equipment and vehicles. The balance owed to CCG as of Jan. 24, is $2,002,288. c. Sovereign holds a third position lien against, inter alia, the Debtor's accounts. The balance owed to Sovereign as of the Petition Date is $783,782. Since December 2013, the parties entered into stipulation and consent order authorizing the Debtor's use of cash collateral to meet its ordinary cash needs, and extending the deadline for the Committee to challenge the validity, enforceability and perfection of liens and claims Peoples and CCG assert against certain bank accounts of the Debtor. As adequate protection from any diminution in value of the lenders' collateral, the Debtor will grant payments to Peoples and CCG: i) on Feb. 5, the Debtor made a payment of $10,000 to Peoples and CCG, respectively, as adequate protection for February 2014; ii) on March 15, and April 15, the Debtor will make adequate protection payments to Peoples in the amounts of $22,889 and $18,672 for each respective month; iii) on March 25, and April 25, the Debtor will make an adequate protection payment to CCG in the amount of $13,348 for each month; iv) on May 15, the Debtor will make an adequate protection payment to Peoples in the amount of $55,116, which payment will also be considered a "Peoples Restructuring Payment" under the Plan Agreement between the Debtor on one hand, and Peoples and CCG on the other; v) on May 25, the Debtor will make an adequate protection payment to CCG in the amount of $40,790, which payment will also be considered a "CCG Restructuring Payment" under the Plan Agreement. Additionally, the Debtor will grant the lenders replacement lien in the Debtor's postpetition collateral, and proceeds thereof, and a superpriority administrative expense claim status, subject to carve out on certain expenses. The carve-out will be only for fees and expenses incurred between the Petition Date and May 31, 2014. The Debtor on Feb. 27 entered into a Plan Agreement with Peoples and CCG, which provided for the Debtor's continued use of cash collateral, and the negotiation of terms of repayment to Peoples and CCG under a reorganizing Plan. A copy of the Plan Agreement is available for free at: http://bankrupt.com/misc/HAASENVIRONMENTAL_planagreement.pdf About Haas Environmental, Inc. Haas Environmental, Inc., filed a Chapter 11 petition (Bankr. D.N.J. Case No. 13-27297) on Aug. 6, 2013. Eugene Haas signed the petition as president. Judge Kathryn C. Ferguson presides over the case. The Debtor disclosed $10,127,069 in assets and $11,595,611 in liabilities as of the Chapter 11 filing. Jerrold N. Poslusny, Jr., Esq., at Cozen O'Connor, in Cherry Hill, New Jersey, serves as the Debtor's counsel. Mary E. Seymour, Esq., at Lowenstein Sandler LLP, serves as counsel for the Official Committee of Unsecured Creditors. EisnerAmper LLP serves as its financial advisor effective Jan. 1, 2014. HANGER INC: Has Until September 17 to File Form 10-K with SEC ------------------------------------------------------------- Hanger, Inc. on March 24 disclosed that it continues to work to file its Form 10-K for the year ended December 31, 2013 as soon as possible. As previously disclosed by the Company in its Form 12b- 25 filed with the Securities and Exchange Commission, the Company is unable to timely file its Annual Report on Form 10-K because of the additional time required to complete the testing and assessment of internal controls, including the testing and assessment of the updated controls and procedures the Company implemented in response to the material weakness in the Company's internal controls over financial reporting reported in the Company's Annual Report on Form 10-K for the year ended December 31, 2012. The Company also disclosed that it has received a notice from the New York Stock Exchange that the Company is not in compliance with the NYSE's continued listing requirements under the timely filing criteria outlined in Section 802.01E of the NYSE Listed Company Manual as a result of the Company's failure to timely file its Annual Report on Form 10-K for the fiscal year ended December 31, 2013. The Exchange has informed the Company that, under the NYSE rules, the Company will have six months, until September 17, 2014, to file its Form 10-K with the SEC. The Company can, and intends to, regain compliance with the NYSE listing standards prior to such date by filing the Form 10-K with the SEC. If the Company fails to file the Form 10-K prior to such date, then the NYSE may grant, at its discretion, a further extension of up to six additional months, depending on the specific circumstances. The letter from the NYSE also notes that the NYSE may commence delisting proceedings at any time if the circumstances warrant. The Company's common stock continues to be listed on the NYSE under the symbol "HGR," but, beginning on March 25, 2014, it will be assigned a "LF" indicator by the NYSE to signify the Company's late filing status. About Hanger, Inc. Built on the legacy of James Edward Hanger, the first amputee of the American Civil War, Hanger, Inc. -- http://www.hanger.com-- delivers orthotic and prosthetic (O&P) patient care, distributes O&P devices and components, and provides therapeutic solutions to the broader post-acute market. Through its Hanger Clinic business, Hanger is the largest owner and operator of O&P patient care clinics with in excess of 740 locations nationwide. Through its subsidiary Southern Prosthetic Supply, Inc. (SPS), Hanger distributes branded and private label O&P devices, products, and components in the United States. The Company provides therapeutic solutions through its Innovative Neurotronics and Accelerated Care Plus businesses. HECLA MINING: Moody's Lowers CFR to 'B2'; Outlook Negative ---------------------------------------------------------- Moody's Investors Service downgraded the Corporate Family and Probability of Default Ratings of Hecla Mining Company to B2 and B2-PD from B1 and B1-PD respectively. At the same time, the senior unsecured notes rating was downgraded to B3 from B2. The outlook is negative. The company's Speculative Grade Liquidity rating is unchanged at SGL-2. Downgrades: Issuer: Hecla Mining Company Probability of Default Rating, Downgraded to B2-PD from B1-PD Corporate Family Rating, Downgraded to B2 from B1 Senior Unsecured Regular Bond/Debenture May 1, 2021, Downgraded to B3 from B2 Outlook Actions: Issuer: Hecla Mining Company Outlook, Changed To Negative From Stable Ratings Rationale The downgrade to a B2 Corporate Family Rating reflects our view that Hecla's operating and financial performance, debt protection metrics and liquidity profile could come under pressure and track meaningfully below our original expectations over the next 12 to 18 months, particularly should silver and gold prices decline from current levels. The downgrade also reflects the potential for Hecla's performance to be negatively impacted by a drop in the prices of lead and zinc, both of which are by-products in the Greens Creek and Lucky Friday mines and contributed approximately 29% of consolidated revenues (before smelter and refining charges), due to weakening global demand for base metals and slowing economic growth in China. Moody's note however that Hecla, as part of its risk management program, looks to hedge its exposure to changes in the price of metals produced (precious and base) during the period of shipment and final settlement and also hedges its exposure to zinc and lead in its expected future concentrate shipments Moody's baseline sensitivity analysis anticipates silver and gold prices retreating to ranges of $18/oz to $20/oz and $1,100/oz to $1,200/oz, respectively in 2014 resulting in EBIT margins (including Moody's standard accounting adjustments) averaging in the low single digits. Furthermore, Moody's expect that key debt protection metrics such as debt-to-EBITDA, EBIT-to-interest and (cash flow from operations less dividends)-to-debt will trend at or somewhat above 4.5 times, below 1.0 times, and below 10%, respectively -- levels that Moody's had previously stated would be indicative of a higher risk profile and a rating below B1. The B3 rating on the unsecured notes reflects their lower priority position in the capital structure to the revolving credit facility and priority accounts payables. Both the revolver and unsecured notes are guaranteed by certain of the company's U.S. subsidiaries. The negative outlook reflects the risk that Hecla's performance and credit metrics may trend at weaker than expected levels in the event that silver and gold prices were to fall below our current sensitivities, and the company experiences delays and cost over- runs with its ongoing expansion projects. The outlook also incorporates our view that Hecla may continue to generate negative free cash flow given capital investment requirements, potentially leading to a weaker liquidity profile. Hecla's SGL-2 Speculative Grade Liquidity Rating reflects our view that the company will maintain good liquidity over the next four quarters. Given our expectations for weaker silver and gold prices and ongoing capital investment requirements, Moody's anticipate that free cash flow will be negative during this period. However, the company maintains sufficient cash balances of approximately $212 million at December 31, 2013 and an undrawn $100 million senior secured revolving credit facility. Furthermore, Moody's expect that the company will comply with its covenants in the next four quarters with an adequate cushion. Hecla's ratings could be downgraded should silver and gold prices fall sharply, the #4 shaft project at Lucky Friday be significantly delayed or experience material cost overruns, the company encounter problems with Casa Berardi's development work and production ramp-up, or operational issues develop at any of the producing mines that would negatively impact financial performance. Quantitatively, the rating could be lowered if credit metrics were to stay at weaker than expected levels such that adjusted debt-to-EBITDA were sustained above 5.5 times, EBIT-to- interest below 1.0 times, or if continuing cash burn results in a significant weakening of liquidity. Upward movement in the rating is unlikely over the next 12 to 18 months given our expectations for weaker silver and gold prices, Hecla's substantial near-term capital spending plans, the need to complete the new shaft at Lucky Friday to extend the mine's life and expand production, and ongoing execution risks at Casa Berardi. The principal methodology used in this rating was the Global Mining Industry published in May 2009. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. Headquartered in Coeur d'Alene, Idaho, Hecla Mining Company ("Hecla") is primarily a silver producer. The company operates two silver mines - Greens Creek in Alaska and Lucky Friday in Idaho -- which also produce lead and zinc as by-products, and several other exploration and pre-development properties. The company also owns Casa Berardi -- a gold mine in Quebec, Canada which the company acquired in June 2013. For the fiscal year ending December 31, 2013, Hecla produced approximately 8.9 million ounces of silver and 120,000 ounces of gold and generated revenues of $383 million. HERCULES OFFSHORE: Board Approves Salary Increase for Executives ---------------------------------------------------------------- The Compensation Committee of the Board of Directors of Hercules Offshore, Inc., approved an increase to the annual base salaries for John T. Rynd, chief executive officer and president; Stephen M. Butz, executive vice president and chief financial officer; James W. Noe, executive vice president; Terrell L. Carr, senior vice president, Worldwide Operations; and Troy L. Carson, senior vice president and chief accounting officer, effective April 6, 2014. The increase to Mr. Rynd's salary restores his salary to the level that it was prior to his taking a voluntary salary reduction in April 2009. The salary modifications are set forth in the following table: Name of Executive Previous Officer Salry New Salary ----------------- ---------- ---------- John T. Rynd $630,000 $700,000 Stephen M. Butz $375,000 $400,000 James W. Noe $375,000 $390,000 Terrell L. Carr $325,000 $340,000 Troy L. Carson $300,000 $312,000 The Committee also approved modifications to the threshold, target, and maximum bonus percentages for Messrs. Butz, Noe and Carr under the Company's Annual HERO Performance Bonus Plan, effective for the 2014 plan year. A complete copy of the Form 8-K is available for free at: http://is.gd/KuNivX About Hercules Offshore Hercules Offshore Inc. (NASDAQ: HERO) -- http://www.herculesoffshore.com/-- provides shallow-water drilling and marine services to the oil and natural gas exploration and production industry in the United States, Gulf of Mexico and internationally. The Company provides these services to integrated energy companies, independent oil and natural gas operators and national oil companies. The Company operates in six business segments: Domestic Offshore, International Offshore, Inland, Domestic Liftboats, International Liftboats and Delta Towing. Hercules incurred a net loss of $127 million in 2012, a net loss of $76.12 million in 2011, and a net loss of $134.59 million in 2010. The Company's balance sheet at Sept. 30, 2013, showed $2.40 billion in total assets, $1.48 billion in total liabilities and $922.37 million in stockholders' equity. * * * The Troubled Company Reporter said on April 11, 2013, that Moody's Investors Service upgraded Hercules Offshore, Inc.'s Corporate Family Rating to B2 from B3. Hercules' B2 CFR is supported by its improved cash flow and lower leverage on the back of increased drilling activity and higher day-rates in the Gulf of Mexico (GOM) As reported by the TCR on Nov. 6, 2012, Standard & Poor's Ratings Services raised its corporate credit rating on Houston-based Hercules Offshore Inc. to 'B' from 'B-'. "The upgrade reflects the improving market conditions in the Gulf of Mexico and our expectations that Hercules' fleet will continue to benefit," said Standard & Poor's credit analyst Stephen Scovotti. HERCULES OFFSHORE: Files Fleet Status Report as of Feb. 19 ---------------------------------------------------------- Hercules Offshore, Inc., posted on its Web site at http://www.herculesoffshore.com/a report entitled "Hercules Offshore Fleet Status Report". The Fleet Status Report includes the Hercules Offshore Rig Fleet Status (as of Feb. 19, 2014), which contains information for each of the Company's drilling rigs, including contract dayrate and duration. The Fleet Status Report also includes the Hercules Offshore Liftboat Fleet Status Report, which contains information by liftboat class for January 2014, including revenue per day and operating days. The Fleet Status Report is available for free at http://is.gd/RrLHVf About Hercules Offshore Hercules Offshore Inc. (NASDAQ: HERO) -- http://www.herculesoffshore.com/-- provides shallow-water drilling and marine services to the oil and natural gas exploration and production industry in the United States, Gulf of Mexico and internationally. The Company provides these services to integrated energy companies, independent oil and natural gas operators and national oil companies. The Company operates in six business segments: Domestic Offshore, International Offshore, Inland, Domestic Liftboats, International Liftboats and Delta Towing. Hercules Offshore incurred a net loss of $68.11 million on $858.30 million of revenue for the year ended Dec. 31, 2013, as compared with a net loss of $127 million on $618.22 million of revenue in 2012. The Company incurred a net loss of $76.12 million in 2011. As of Dec. 31, 2013, the Company had $2.30 billion in total assets, $1.47 billion in total liabilities and $823.70 million in equity. * * * The Troubled Company Reporter said on April 11, 2013, that Moody's Investors Service upgraded Hercules Offshore, Inc.'s Corporate Family Rating to B2 from B3. Hercules' B2 CFR is supported by its improved cash flow and lower leverage on the back of increased drilling activity and higher day-rates in the Gulf of Mexico (GOM) As reported by the TCR on Nov. 6, 2012, Standard & Poor's Ratings Services raised its corporate credit rating on Houston-based Hercules Offshore Inc. to 'B' from 'B-'. "The upgrade reflects the improving market conditions in the Gulf of Mexico and our expectations that Hercules' fleet will continue to benefit," said Standard & Poor's credit analyst Stephen Scovotti. HIBU INC: Yellow-Page Publisher Closing U.S. Proceedings -------------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that Hibu Inc., the publisher of "Yellowbook" phone directories that won U.S. court enforcement last month of its reorganization in the U.K., has no further need for the Chapter 15 bankruptcy begun Jan. 28 in the U.S. Bankruptcy Court in Central Islip, New York. According to the report, the U.S. court recognized the U.K. court as home to a so-called foreign non-main bankruptcy proceeding. Consequently, the U.S. court declared that the U.K. reorganization, known as a scheme, would be enforced in the U.S. Enforcement of the U.K. scheme includes enforcing releases in the U.S., the report related. The purpose of the U.S. bankruptcy proceeding having been accomplished, Hibu filed papers last week to close out the Chapter 15 case. There will be a hearing on March 27 for the judge to consider closing the Chapter 15 case, the report said. Hibu reserves the right to reopen the case is the need arises. About hibu Inc. hibu is one of the largest multinational providers of print and digital directories and digital services connecting local consumers and merchants. While headquartered in Reading, U.K., hibu has approximately one million small and medium-sized business ("SMB") customers located around the world. hibu's main operations are located in the U.K., U.S., and Spain, with operations also in Argentina, Chile, and Peru along with shared service functions in India and the Philippines. hibu seeks to transform itself from being a leading supplier of print and online advertising for SMBs to becoming a leader in providing a portfolio of print and digital marketing solutions for SMBs to reach consumers. hibu Inc. and related entities commenced restructuring proceedings under Part 26 of the United Kingdom Companies Act 2006 before the High Court of Justice of England and Wales (Chancery Division) on Jan. 17, 2014. hibu Inc. and related entities filed Chapter 15 bankruptcy petitions (Bankr. S.D.N.Y. Lead Case No. 14-70323) in Central Islip, New York on Jan. 28, 2014, to seek recognition of reorganization proceedings in the United Kingdom. Christian Henry Wells, the foreign representative, is represented by James H.M. Sprayregen, Esq., Marc Kieselstein, Esq., Adam C. Paul, Esq., Jeffrey D. Pawlitz, Esq., at Kirkland & Ellis LLP. hibu estimated at least US$1 billion in assets and liabilities in its Chapter 15 petition. U.S. Bankruptcy Judge Robert E. Grossman oversees the U.S. case. HOVNANIAN ENTERPRISES: Incurs $24.5MM Net Loss in Jan. 31 Qtr. -------------------------------------------------------------- Hovnanian Enterprises, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $24.52 million on $364.04 million of total revenues for the three months ended Jan. 31, 2014, as compared with a net loss of $11.30 million on $358.21 million of total revenues for the same period in 2013. The Company's balance sheet at Jan. 31, 2013, showed $1.78 billion in total assets, $2.24 billion in total liabilities and a $456.12 million total deficit. A copy of the Form 10-Q is available for free at: http://is.gd/eJm4RL About Hovnanian Enterprises Red Bank, New Jersey-based Hovnanian Enterprises, Inc. (NYSE: HOV) -- http://www.khov.com/-- founded in 1959 by Kevork S. Hovnanian, is one of the nation's largest homebuilders with operations in Arizona, California, Delaware, Florida, Georgia, Illinois, Kentucky, Maryland, Minnesota, New Jersey, New York, North Carolina, Ohio, Pennsylvania, South Carolina, Texas, Virginia and West Virginia. The Company's homes are marketed and sold under the trade names K. Hovnanian Homes, Matzel & Mumford, Brighton Homes, Parkwood Builders, Town & Country Homes, Oster Homes and CraftBuilt Homes. As the developer of K. Hovnanian's Four Seasons communities, the Company is also one of the nation's largest builders of active adult homes. Hovnanian Enterprises posted net income of $31.29 million on $1.85 billion of total revenues for the year ended Oct. 31, 2013, as compared with a net loss of $66.19 million on $1.48 billion of total revenues during the prior year. * * * As reported by the Troubled Company Reporter on April 25, 2013, Standard & Poor's Ratings Services said it raised its corporate credit rating on Hovnanian Enterprises Inc. to 'B-' from 'CCC+'. "The upgrade reflects strengthening operating performance supported by the broader recovery in the housing market that, we believe, should support modest profitability in 2013," said Standard & Poor's credit analyst George Skoufis. In the Dec. 9, 2013, edition of the TCR, Fitch Ratings upgraded the Issuer Default Rating (IDR) of Hovnanian Enterprises to 'B-' from 'CCC'. The upgrade and the Stable Outlook reflects HOV's operating performance year-to-date (YTD), adequate liquidity position, and moderately better prospects for the housing sector during the remainder of this year and in 2014. As reported by the TCR on Jan. 9, 2014, Moody's Investors Service raised the Corporate Family Rating of Hovnanian Enterprises, Inc., to B3 from Caa1. The upgrade of the Corporate Family Rating to B3 reflects Hovnanian's improved financial performance including improvement in interest coverage to slightly above 1x and finally turning net income positive for the fiscal year 2013. HORIZON LINES: Settles Qui Tam Complaint in Florida --------------------------------------------------- Horizon Lines, LLC, a subsidiary of Horizon Lines, Inc., entered into a settlement agreement which will resolve the pending inquiries of the United States Department of Justice on behalf of the United States Postal Service, the United States Department of Agriculture and the United States Department of Defense. The settlement agreement relates to a federal qui tam complaint filed by the relator, William B. Stallings, in the United States District Court for the Middle District of Florida, pursuant to the qui tam provisions of the False Claims Act. The claims underlying the qui tam civil complaint were alleged price fixing of certain ocean transportation contracts between the continental United States and Puerto Rico during the period from April 2002 through April 2008 that involved the United States as a customer. This qui tam action was unsealed on March 6, 2014. The settlement agreement provides that the Company will pay to the United States the total sum of $1,508,750 in six different installments over a period of 455 days from the date of the settlement agreement. The Company is also required to pay the relator $75,000 for his attorney's fees and costs. The settlement agreement further provides that if the Company's financial statements contain certain material misstatements or omissions, the United States may be able to collect additional amounts from the Company depending upon the nature of the misstatement. Moreover, if the Company is subject to certain proceedings relating to bankruptcy, insolvency or reorganization prior to 91 days after the last payment made, or required to be made, under the settlement agreement and the payment obligations under the settlement agreement are avoided, the United States may rescind the releases granted to the Company and may assert a claim for $10,500,000 against the Company in those proceedings. In exchange for the payment of the settlement amounts, the United States and the relator agree to release the Company from certain claims, including from any civil or administrative monetary claim under the False Claims Act and certain other legal theories for certain conduct that was at issue in the inquiries and in the qui tam complaint. The settlement agreement is not an admission of liability or wrongdoing by the Company, nor a concession by the United States or the civil qui tam relator that their claims are not well founded. A copy of the Settlement Agreement is available for free at: http://is.gd/oeTVB6 About Horizon Lines Charlotte, N.C.-based Horizon Lines, Inc. (NYSE: HRZ) is the nation's leading domestic ocean shipping and integrated logistics company. The Company owns or leases a fleet of 20 U.S.-flag containerships and operates five port terminals linking the continental United States with Alaska, Hawaii, Guam, Micronesia and Puerto Rico. The Company provides express trans-Pacific service between the U.S. West Coast and the ports of Ningbo and Shanghai in China, manages a domestic and overseas service partner network and provides integrated, reliable and cost competitive logistics solutions. The Company's balance sheet at Sept. 22, 2013, showed $642.85 million in total assets, $675.01 million in total liabilities and a $32.16 million total stockholders' deficiency. * * * In June 2012, Moody's Investors Service affirmed Horizon Lines, Inc.'s Corporate Family Rating (CFR) and Probability of Default Rating ("PDR") at Caa2 and removed the LD ("Limited Default") designation from the rating in recognition of the conversion to equity of the $228 million of Series A and Series B Convertible Senior Secured notes due in October 2017 ("Notes"). Moody's said the affirmation of the Corporate Family and Probability of Default ratings considers that total debt has been reduced by the conversion of the Notes, but also recognizes the significant operating challenges that the company continues to face. HUNTER DEFENSE: S&P Lowers CCR to 'CCC' on Debt Maturity Concerns ----------------------------------------------------------------- Standard & Poor's Ratings Services lowered its corporate credit rating on Ohio-based Hunter Defense Technologies Inc. to 'CCC' from 'CCC+'. The outlook is developing. At the same time, S&P lowered its issue-level rating on the first- lien term loan to 'B-' from 'B' and lowered its rating on the second-lien term loan to 'CC' from 'CCC-'. S&P's recovery ratings remain unchanged at '1' on the first-lien debt, indicating expectations for substantial recovery (90%-100%), and '6' on the second-lien debt, indicating negligible recovery (0%-10%) in the event of a payment default. "The downgrade reflects our concerns that the company may be unable to successfully refinance its $141 million first-lien term loan, which matures in less than six months (August 2014), and its $44 million second-lien term loan, which matures in less than 12 months (February 2015)," said Standard & Poor's credit analyst Chris Mooney. Recently announced plans to significantly reduce the size of the Army over time will likely hurt long-term demand for Hunter's products and could complicate the company's ability to refinance upcoming maturities, in S&P's view. "Our "highly leveraged" financial risk profile incorporates an aggressive financial policy employed by private-equity sponsor Metalmark Capital. We expect debt to EBITDA to remain around 5x and funds from operations (FFO) to debt to be between 10%-15% over the next year. Although earnings will decline due to lower demand from the U.S. military, we believe the company will continue to use free cash to reduce debt in an attempt to maintain covenant compliance, resulting in fairly stable credit ratios. However, some volatility may exist around our base forecast due to the potential for further delays in orders. We consider the company's business risk profile "weak" because of its modest revenue base and somewhat limited product diversity, combined with significant exposure to reductions in U.S. defense spending, which is partially offset by efficient operations and dominant market positions in small, niche markets. We believe Hunter has a flexible cost structure that will enable it to maintain its EBITDA margins in the 15% area despite lower volumes," S&P said. The rating outlook is developing. Demand for Hunter's products remains uncertain because of lower U.S. defense spending and changing mission requirements. S&P could lower the rating further in the coming months if it believes a default or distressed exchange appears inevitable. S&P could raise the rating if Hunter is able to successfully extend near-term maturities and loosen its financial covenants, prompting S&P to revise its liquidity assessment to "less than adequate" or "adequate". ICEF-VIEW PARK: S&P Assigns 'BB' Rating to Facility Revenue Bonds ----------------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'BB' rating to California School Finance Authority's school facility revenue bonds, series 2014, issued for ICEF - View Park Elementary & Middle Schools. The outlook is stable. "The rating reflects our view of ICEF's ongoing financial recovery marked by positive total net assets in fiscal 2013, with a surplus, strong leadership, solid liquidity, and diversification of 12 schools with good enrollment," said Standard & Poor's credit analyst Carlotta Mills. Bond proceeds will reimburse ICEF for the purchase of land and the construction of a new school. This rating only applies to the 2014 bonds secured by the two above schools and not to ICEF as a whole. ID PERFUMES: Files Copy of License Agreement with Kendall Jenner ---------------------------------------------------------------- ID Perfumes, Inc., filed with the U.S. Securities and Exchange Commission a copy of its License Agreement with with Kendall Jenner. On Sept. 25, 2013, the Company entered into an exclusive license agreement with Kendall Jenner Inc. The Company previously requested confidential treatment for certain portions of the License Agreement and that information was redacted from the public filing. The Company has withdrawn its request for Confidentiality Treatment. A copy of the License Agreement with no redacted information is available for free at http://is.gd/NJZ5e9 About ID Perfumes ID Perfumes, Inc., manufactures, markets, and distributes fragrances and fragrance related products. The company produces and distributes its fragrance products under license agreements with Selena Gomez and Adam Levine. ID Perfumes, Inc., sells it products to department stores, perfumeries, specialty retailers, mass-market retailers, and the United States and international wholesalers and distributors. It primarily has operations in the United States, Latin America, and Canada. The company was formerly known as Adrenalina and changed its name to ID Perfumes, Inc., in February 2013. ID Perfumes, Inc., was founded in 2004 and is headquartered in Hallandale Beach, Florida. The Company reported a net loss of $12.01 million in 2008, compared with a net loss of $5.26 million in 2007. For the nine months ended Sept. 30, 2013, the Company reported a net loss of $3.72 million on $6.03 million of sales as compared with a net loss of $3.02 million on $4.19 million of sales for the same period during the prior year. The Company's balance sheet at Sept. 30, 2013, showed $2.83 million in total assets, $17.24 million in total liabilities and a $14.41 million total shareholders' deficiency. Going Concern The Company said in its quarterly report for the period ended Sept. 30, 2013, that it has significant operating losses since inception which raise substantial doubt about the Company's ability to continue as a going concern. The Company has incurred net losses of $3.7 million and $3 million in the first nine months of 2013 and 2012, respectively. The Company was involved in litigation that resulted in the termination of a license. The operations of the Company have been funded through loans, related party borrowings, customer deposits, contributed capital, factoring and obtaining operating services from vendors. Management's plans to generate cash flow during 2013 include expanding the Company's operations through building new relationships and entering into new license agreements to introduce new fragrance lines and raising additional capital through debt or equity offerings and continue to obtain operating services from vendors in an effort to fund the Company's anticipated expansion. There is no assurance additional capital or debt financing will be available to the Company on acceptable terms. INDYMAC BANCORP: 9th Circ. Won't Nix Arguments in $80M D&O Row -------------------------------------------------------------- Law360 reported that the Ninth Circuit refused to cancel oral arguments in a dispute involving IndyMac Bancorp Inc.'s bankruptcy trustee, the Federal Deposit Insurance Corp. and former IndyMac executives over $80 million in directors and officers coverage for securities and other suits, despite their recent settlement with insurers. According to the report, though the insurers have worked out a definitive settlement agreement with some parties, a bankruptcy court still has to clear the way for other settlements to be finalized, the Ninth Circuit noted. The case is XL Specialty Insurance Co, et al v. Alfred Siegel, et al., Case No. 12-56275 (9th Cir.). About Indymac Bancorp Based in Pasadena, California, IndyMac Bancorp Inc. (NYSE:IMB) -- http://www.indymacbank.com/-- is the holding company for IndyMac Bank FSB, a hybrid thrift/mortgage bank that originated mortgages in all 50 states of the United States. Through its hybrid thrift- mortgage bank business model, IndyMac designed, manufactured, and distributing cost-efficient financing for the acquisition, development, and improvement of single-family homes. IndyMac also provided financing secured by single-family homes to facilitate consumers' personal financial goals and strategically invests in single-family mortgage-related assets. On July 11, 2008, the Office of Thrift Supervision closed IndyMac Bank and appointed FDIC as the bank's receiver. Thacher Proffitt & Wood LLP was engaged as counsel to the FDIC. Indymac Bancorp filed for Chapter 7 bankruptcy protection (Bankr. C.D. Cal. Case No. 08-21752) on July 31, 2008. Representing the Debtor are Dean G. Rallis, Jr., Esq., and John C. Weitnauer, Esq. Bloomberg noted that Indymac had about $32.01 billion in assets as of July 11, 2008. In court documents, IndyMac disclosed estimated assets of $50 million to $100 million and estimated debts of $100 million to $500 million. INFINITY ENERGY: Extends Maturity of Note to May 11 --------------------------------------------------- Infinity Energy Resources, Inc., on Dec. 27, 2013, borrowed $1,050,000 under an unsecured credit facility with a private, third-party lender. The facility is represented by a promissory note. On March 7, 2014, the Company and the lender agreed to extend the maturity date of the Note from March 12, 2014, to May 11, 2014. All other terms of the Note remain the same. The Company paid no fees in connection with the extension, but paid the legal expenses of the lender related to the extension. The Note may be prepaid without penalty at any time. The Note is subordinated to all existing and future senior indebtedness, as that terms are defined in the Note. In connection with its loan, the Company granted the lender a warrant exercisable to purchase 1,000,000 shares of its common stock at an exercise price of $1.50 per share. In connection with the extension of the maturity date of the Note to the New Maturity Date, the parties amended the date for exercise of the Warrant to be a period commencing May 11, 2014, and expiring on the third anniversary of that date. The Company issued no additional warrants to the lender in connection with the extension of the Note to the New Maturity Date. If the Company fails to pay the note on or before its New Maturity Date, the number of shares issuable under the Warrant increases to 13,333,333 and the exercise price drops to $0.075 per share. All other terms of the Warrant remain the same. About Infinity Energy Overland Park, Kansas-based Infinity Energy Resources, Inc., and its subsidiaries, are engaged in the acquisition and exploration of oil and gas properties offshore Nicaragua in the Caribbean Sea. Infinity Energy disclosed net income of $2.90 million for the year ended Dec. 31, 2012, as compared with a net loss of $3.52 million during the prior year. The Company's balance sheet at Sept. 30, 2013, showed $4.76 million in total assets, $5.74 million in total liabilities, $15.17 million in redeemable, convertible preferred stock, and stockholders' deficit of $16.15 million. EKS&H LLLP, in Denver, Colorado, 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, has no on-going operations, and has a significant working capital deficit, which raises substantial doubt about its ability to continue as a going concern. INFOGROUP INC: Moody's Lowers Corporate Family Rating to B3 ----------------------------------------------------------- Infogroup Inc., a database provider for direct marketers, got a downgrade from Moody's Investors Service that matches the action taken in April by Standard & Poor's. Moody's lowered the corporate rating by one grade to B3 in view of "significant customer attrition and declining revenue." On the plus side, Moody's said that declining revenue "should begin to stabilize in the intermediate term." The Moody's downgrade was the second in 13 months. The Papillion, Nebraska-based company was acquired in April 2010 by private-equity investor CCMP Capital Advisors LLC in a $636.3 million transaction, according to data compiled by Bloomberg. INNOVATIVE COMMS: Plan Trustee's Avoidance Suit Not Time-Barred --------------------------------------------------------------- Bankruptcy Judge Mary F. Walrath, sitting in the District Court of Virgin Islands, Bankruptcy Division, Division of St. Thomas/St. John, granted the motions of James P. Carroll, the Trustee of the Liquidation Trust for the bankruptcy estates of Innovative Communications Co., LLC ("ICC-LLC"), Emerging Communications, Inc. ("Emerging"), and Innovative Communication Corp. ("New ICC") for partial summary judgment on the issue of whether the Trustee's complaints against various defendants are time-barred by the applicable statute of limitations. The Court ruled that the applicable statute of limitations does not bar the Trustee's Complaints. The case is, JAMES P. CARROLL, Liquidation Trustee of the Liquidation Trust for the Bankruptcy Estates of Innovative Communications Co., LLC, Emerging Communications, Inc., and Innovative Communication Corp. Plaintiff, v. ROBERT F. CRAIG P.C., JOHN P. RAYNOR, PETER WEISMAN and PETER WEISMAN & ASSOCIATES, PROSSER & CAMPBELL, P.C. RAYNOR, RENSCH & PFEIFFER BANCO POPULAR de PUERTO RICO Defendants, Adv. P. No. 09-03070 (MFW)., 09-03012 (MFW), 09-03089 (MFW), 09-03009 (MFW), 09-03010 (MFW), 09-03090 (MFW)(D. Virgin Islands). The chapter 11 Trustee originally commenced the adversary proceedings in 2009 by filing complaints against the Defendants to recover various pre-petition transfers as preferential under section 547 and as actually or constructively fraudulent pursuant to section 548, section 544, and Virgin Islands law. The Liquidation Trustee succeeded the chapter 11 Trustee as Plaintiff in the actions following confirmation of a plan in the cases. Pursuant to that plan, all causes of action of the estates were vested in a liquidating trust. A copy of the Court's March 19, 2014 Memorandum Opinion is available at http://is.gd/YlMshEfrom Leagle.com. About Prosser & Innovative Communication Headquartered in St. Thomas, Virgin Islands, Innovative Communication Company, LLC -- http://www.iccvi.com/-- and Emerging Communications, Inc., are diversified telecommunications and media companies operating mainly in the U.S. Virgin Islands. Jeffrey J. Prosser owns Emerging Communications and Innovative Communications. Innovative and Emerging filed for Chapter 11 protection on July 31, 2006 (D.V.I. Case Nos. 06-30007 and 06-30008). When the Debtors filed for protection from their creditors, they estimated assets and debts of more than $100 million. Mr. Prosser also filed for chapter 11 protection on July 31, 2006 (D.V.I. Case No. 06-10006). According to The (Virgin Islands) Source, he was fired in October 2007 for failing to make payments into the company pension funds. On Oct. 3, 2007, the Prosser case was converted to chapter 7 and James P. Carroll was ultimately appointed the chapter 7 Trustee. Greenlight Capital Qualified, L.P., Greenlight Capital, L.P., and Greenlight Capital Offshore, Ltd. -- which holds an $18,780,614 claim against Mr. Prosser -- had filed an involuntary chapter 11 against Innovative Communication, Emerging Communications, and Mr. Prosser on Feb. 10, 2006 (Bankr. D. Del. Case Nos. 06-10133, 06-10134, and 06-10135). Mr. Prosser argued that the Greenlight entities, the former shareholders of Innovative Communications, and Rural Telephone Finance Cooperative, Mr. Prosser's lender, conspired to take down his companies into bankruptcy and collect millions in claims. The U.S. District Court of the Virgin Islands, Bankruptcy Division, approved the U.S. Trustee for Region 21's appointment of Stan Springel of Alvarez & Marsal as Chapter 11 Trustee of Innovative and Emerging Communications. Joseph Steinfeld, Jr., Esq., of Ask Financial, LLP, act as counsel to the Chapter 11 Trustee. On Oct. 31, 2012, an Order was entered confirming the joint liquidating plan of ICC-LLC, Emerging, and New ICC. INSTRUMENTATION AND CONTROLS: Court Rules in Avoidance Suit ----------------------------------------------------------- Instrumentation and Controls, Inc. and ICI Green, LLC seek to recover pre-petition payments totaling $31,950.00 as preferences pursuant to 11 U.S.C. Sections 547, 550. Northeast Union, Inc. asserts the defense that the Plaintiffs' payments constituted a contemporaneous exchange for new value. The Defendant raises a species of this defense commonly referred to as the "indirect transfer" theory. The Plaintiffs filed a Motion for Judgment on the Pleadings. The Defendant responded. The Plaintiffs contend that the facts set forth in the Defendant's Answer to the Complaint do not state a defense under Sec. 547(c)(1) and, based on the admissions in the Answer, the Plaintiffs are entitled to judgment as a matter of law. Bankruptcy Judge Eric L. Frank disagreed and denied the Plaintiffs' Motion in a March 18, 2014 Memorandum available at http://is.gd/DcSkx8from Leagle.com. The case is, INSTRUMENTATION AND CONTROLS, INC., ICI GREEN, L.L.C., Plaintiffs, v. NORTHEAST UNION, INC., Defendant, Adv. Proc. No. 13-0563 (Bankr. E.D. Pa.). Instrumentation and Controls, Inc., filed for Chapter 11 bankruptcy (Bankr. E.D. Pa. Case No. 13-17059) on Aug. 12, 2013, listing under $1 million in both assets and liabilities. Nella Moses Bloom, Esq., and Steven D. Usdin, Esq., at Flaster/Greenberg PC, serve as the Debtor's counsel. A copy of the petition and the list of largest unsecured creditors are available at no extra charge at: http://bankrupt.com/misc/paeb13-17059p.pdf http://bankrupt.com/misc/paeb13-17059c.pdf ICI Green, L.L.C. filed for Chapter 11 bankruptcy (Bankr. E.D. Pa. Case No. 13-17060) on the same date, listing under $1 million in both assets and liabilities. Nella Moses Bloom, Esq., and Steven D. Usdin, Esq., at Flaster/Greenberg PC, also serve as the Debtor's counsel. A copy of the ICI Green petition and the list of largest unsecured creditors are available at no extra charge at: http://bankrupt.com/misc/paeb13-17060p.pdf http://bankrupt.com/misc/paeb13-17060c.pdf INTERNATIONAL TEXTILE: Court Partially OKs Lawsuit Settlement ------------------------------------------------------------- International Textile Group, Inc., has previously disclosed that it is a party, as a nominal defendant only, to a consolidated class action lawsuit and related derivative action, which consolidated three factually identical lawsuits filed in 2008 and 2009 under the caption In re International Textile Group, Inc., Merger Litigation, pending in the Court of Common Pleas, Greenville County, South Carolina, C.A. No. 2009-CP-23-3346. The Consolidated Action relates to the combination of the Company, which at the time was named Safety Components International, Inc., and a company formerly known as International Textile Group, Inc., which occurred in late 2006. The Consolidated Action names as defendants, among others, certain individuals who were officers and directors, and certain stockholders, of Former ITG or the Company at the time of, and an entity which was an independent financial advisor to the Company in connection with, the Merger. The plaintiffs in the Consolidated Class Action contend that certain of the Non-Company Defendants breached certain fiduciary duties, and have also made related claims, in connection with the Merger. On Feb. 19, 2014, the Company, as a nominal defendant, the plaintiffs and the Non-Company Defendants entered into a Stipulation and Settlement Agreement relating to the Consolidated Action. The Settlement Agreement, which was preliminarily approved by the Court on Feb. 19, 2014, and remains subject to the final approval of the Court as described below, provides, among other things, that in settlement of the Consolidated Action: (i) certain of the Non-Company Defendants will make an aggregate $36 million cash payment thereunder, which includes a $16 million cash payment from the independent financial advisor and its insurers and a $20 million cash payment from other Non-Company Defendants and their insurers; (ii) $21.9 million in principal and accrued interest of the Company's senior subordinated notes, will be cancelled, together with all additional interest that accrues on those notes from Dec. 31, 2013, through the effective date of the Settlement Agreement; and (iii) 10,315,727 shares of the Company's Series A convertible preferred stock, having a liquidation value of $257.9 million as of Dec. 31, 2013, and 11,488 shares of the Company's Series C preferred stock, having a liquidation value of $11.5 million as of Dec. 31, 2013, in each case together with any additional shares of Series A Preferred Stock and Series C Preferred Stock that accrue with respect to those shares through the effective date of the Settlement Agreement, all of which are held by the Affiliates, will be cancelled on the effective date of the Settlement Agreement. As of Dec. 31, 2013, the Company had a total of $163.5 million in aggregate principal and accrued interest of senior subordinated notes outstanding, and had outstanding shares of Series A Preferred Stock with an aggregate liquidation value of approximately $337 million, and of Series C Preferred Stock with an aggregate liquidation value of approximately $126 million. If the Settlement Agreement receives final approval by the Court, the Cancelled Notes and the Cancelled Preferred Stock will be cancelled, and the Company's respective obligations, and the Affiliates' respective rights, thereunder will be terminated, effective as of Dec. 31, 2013. The Company expects that when those cancellations take effect following final approval of the Settlement Agreement, they will not have an impact on the Company's consolidated statements of operations but will have an impact on its consolidated balance sheet by reducing the Company's long-term debt and stockholders' deficit, by the amount of the Cancelled Notes, and by reducing the aggregate liquidation value of the Series A Preferred Stock and the Series C Preferred Stock by the respective values of the Cancelled Preferred Stock. The Company cannot determine the amount of cash, if any, from the Cash Settlement that may be available for use by the Company after those funds are applied in accordance with the Settlement Agreement to pay fees and expenses of various legal and other advisors in connection with the Consolidated Action. In accordance with the terms of the Settlement Agreement, the Company expects that the claims administrator will soon commence distribution of the required notices relating to the proposed settlement of the Consolidated Action. The Court has scheduled a hearing to consider final approval of the Settlement Agreement on June 23, 2014, and the Company anticipates that, if approved, the Settlement Agreement would take effect in the third quarter of 2014. About International Textile International Textile Group, Inc., is a global, diversified textile manufacturer headquartered in Greensboro, North Carolina, with current operations principally in the United States, China, Mexico, and Vietnam. ITG's long-term focus includes the realization of the benefits of its global expansion, including reaching full production at ITG facilities in China and Vietnam, and continuing to seek other strategic growth opportunities. International Textile incurred a net loss of $67.33 million in 2012, as compared with a net loss of $69.64 million in 2011. The Company's balance sheet at Sept. 30, 2013, showed $362 million in total assets, $490.17 million in total liabilities and a $128.16 million total stockholders' deficit. INTEGRATED HEALTHCARE: Silver Point Stake at 27.3% as of Feb. 19 ---------------------------------------------------------------- In an amended Schedule 13D filed with the U.S. Securities and Exchange Commission, Silver Point Capital, L.P., and its affiliates disclosed that as of Feb. 19, 2014, they beneficially owned 96,000,000 shares of common stock of Integrated Healthcare Holdings, Inc., representing 27.3 percent of the shares outstanding. The percentage was calculated based upon 255,307,262 shares outstanding as of Nov. 7, 2013, as reported in the Company's Form 10-Q filed on Nov. 14, 2013. A copy of the regulatory filing is available for free at http://is.gd/ZwgGTB About Integrated Healthcare Santa Ana, Calif.-based Integrated Healthcare Holdings, Inc., owns and operates four community-based hospitals located in southern California. Integrated Healthcare incurred a net loss of $15.86 million on $383.50 million of net patient service revenues for the year ended March 31, 2013, as compared with net income of $7.94 million on $362.19 million of net patient service revenues for the year ended March 31, 2012. The Company's balance sheet at Sept. 30, 2013, showed $218.88 million in total assets, $224.65 million in total liabilities and a $5.76 million total stockholders' deficiency. ISTAR FINANCIAL: Incurs $57.9 Million Net Loss in 4th Quarter ------------------------------------------------------------- iStar Financial Inc. reported a net loss allocable to common shareholders of $57.93 million on $101.07 million of total revenues for the three months ended Dec. 31, 2013, as compared with a net loss allocable to common shareholders of $87.42 million on $96.42 million of total revenues for the same period during the prior year. iStar Financial incurred a net loss allocable to common shareholders of $155.76 million on $390.79 million of total revenues for the year ended Dec. 31, 2013, as compared with a net loss allocable to common shareholders of $272.99 million on $397.53 million of total revenues in 2012. The Company incurred a net loss allocable to common shareholders of $62.38 million in 2011. As of Dec. 31, 2013, the Company had $5.64 billion in total assets, $4.32 billion in total liabilities, $11.59 million in redeemable noncontrollling interests, and $1.30 billion in total equity. "Over the past year, we have made meaningful progress across all of our business segments which has enhanced shareholder value," said Jay Sugarman, iStar's Chairman and chief executive officer. "We began originating new deals in our real estate finance and net lease segments, significantly reduced the balance of NPLs, continued harvesting condominium gains within our operating properties and advanced a number of our land projects by obtaining entitlements, furthering development, and pursuing strategic partnerships. We are well positioned to build on this positive momentum in 2014." A copy of the press release is available for free at: http://is.gd/gA9DWa About iStar Financial New York-based iStar Financial Inc. (NYSE: SFI) provides custom- tailored investment capital to high-end private and corporate owners of real estate, including senior and mezzanine real estate debt, senior and mezzanine corporate capital, as well as corporate net lease financing and equity. The Company, which is taxed as a real estate investment trust, provides innovative and value added financing solutions to its customers. * * * In March 2013, Fitch Ratings affirmed iStar's 'B-' issuer default rating and revised the outlook to "positive" from "stable." The revision of the outlook to positive is based on the company's demonstrated access to the unsecured debt market, which, combined with certain secured debt refinancings, have significantly improved SFI's near-term debt maturity profile. As reported by the TCR on Oct. 5, 2012, Standard & Poor's Ratings Services affirmed its 'B+' long-term issuer credit rating on iStar Financial. In October 2012, Moody's Investors Service upgraded the corporate family rating to B2 from B3. The current rating reflects the REIT's success in extending near term debt maturities and improving fundamentals in commercial real estate. The ratings on the October 2012 senior secured credit facility takes into account the asset coverage, the size and quality of the collateral pool, and the term of facility. ISTAR FINANCIAL: BlackRock Stake at 10.9% as of Dec. 31 ------------------------------------------------------- In an amended Schedule 13G filed with the U.S. Securities and Exchange Commission, BlackRock, Inc., disclosed that as of Feb. 28, 2014, it beneficially owned 9,550,819 shares of common stock of Istar Financial representing 10.9 percent of the shares outstanding. BlackRock previously owned 8,406,073 shares at Dec. 31, 2013. A copy of the regulatory filing is available for free at http://is.gd/PRGrf2 About iStar Financial New York-based iStar Financial Inc. (NYSE: SFI) provides custom- tailored investment capital to high-end private and corporate owners of real estate, including senior and mezzanine real estate debt, senior and mezzanine corporate capital, as well as corporate net lease financing and equity. The Company, which is taxed as a real estate investment trust, provides innovative and value added financing solutions to its customers. iStar Financial incurred a net loss of $241.43 million in 2012, following a net loss of $25.69 million in 2011. The Company's balance sheet at Sept. 30, 2013, showed $5.77 billion in total assets, $4.37 billion in total liabilities, $12.39 million in redeemable noncontrolling interests, and $1.38 billion in total equity. * * * In March 2013, Fitch Ratings affirmed iStar's 'B-' issuer default rating and revised the outlook to "positive" from "stable." The revision of the outlook to positive is based on the company's demonstrated access to the unsecured debt market, which, combined with certain secured debt refinancings, have significantly improved SFI's near-term debt maturity profile. As reported by the TCR on Oct. 5, 2012, Standard & Poor's Ratings Services affirmed its 'B+' long-term issuer credit rating on iStar Financial. In October 2012, Moody's Investors Service upgraded the corporate family rating to B2 from B3. The current rating reflects the REIT's success in extending near term debt maturities and improving fundamentals in commercial real estate. The ratings on the October 2012 senior secured credit facility takes into account the asset coverage, the size and quality of the collateral pool, and the term of facility. JACKSON HEWITT: New Jersey Court Narrows FasTax Suit ---------------------------------------------------- District Judge William J. Martini granted, in part, and denied, in part, the motion of Jackson Hewitt, Inc. to dismiss FasTax, Inc.'s complaint. Judge Martini denied FasTax's motion seeking a declaration that a release agreement is not valid. FasTax and Jackson Hewitt have a longstanding relationship as franchisee and franchisor, respectively. FasTax has operated Jackson Hewitt income tax return preparation business franchises in Oregon, Idaho, and California. Jackson Hewitt's franchisees enter into agreements that give the franchisees license to operate Jackson Hewitt locations within a particular geographical area. These areas are designated as "territories." This case arises out of a dispute over FasTax and Jackson Hewitt's franchise rights and responsibilities regarding several "territories" in Idaho. The dispute began in 2009. In short, FasTax alleges that Jackson Hewitt owes FasTax over $1.1 million for acts relating to the Idaho Territories. In the midst of the dispute over the Idaho Territories that began in 2009, Jackson Hewitt filed for bankruptcy in the United States Bankruptcy Court for the District of Delaware on May 24, 2011. FasTax appeared as a creditor on the Consolidated List of Creditors. Its address was correctly displayed on that list. Jackson Hewitt sent FasTax proper notices about the filing of the Chapter 11 Bankruptcy. The notices informed Plaintiff that the Bankruptcy Plan would not give unsecured creditors a right to recovery. Jackson Hewitt served Plaintiff with actual notice of the Effective Date of the Confirmed Plan. Plaintiff did not object to the confirmation of the Plan or appear at the hearing. Jackson Hewitt and its secured lenders agreed to modify the Bankruptcy Confirmation Plan to create a trust to hold a certain amount of cash and estate causes of action for the benefit of the unsecured creditors. The Bankruptcy Plan became effective on August 16, 2011. The Plan Confirmation Order precluded all claims arising before the effective date of the Bankruptcy Plan. All of FasTax's claims arose before the effective date of the Plan. Meanwhile, in August 2011, Jackson Hewitt presented FasTax with a new franchise agreement to replace one that had expired in 2009. Jackson Hewitt asked Plaintiff to execute certain release agreements. The Release would extinguish any claims Plaintiff had against Jackson Hewitt independently of the bankruptcy proceedings. Plaintiff placed hand-written notes on the Release, stating that it "ONLY PERTAINS TO OREGON BASED TERRITORIES." On Oct. 6, 2011, five individual FasTax owners and guarantors sent this modified Release back to Jackson Hewitt. Thereafter, the Complaint alleges, Jackson Hewitt fraudulently removed FasTax's handwritten notes on the Release so that the Release would pertain to all FasTax's territories. Jackson Hewitt admits that it told FasTax via e-mail that the handwritten notes limiting the Release to the Oregon Territories were unacceptable. It is undisputed that Jackson Hewitt sought FasTax's authorization via e-mail to remove the hand-written notes. Fastax's only reply to this request was an e-mail from a FasTax representative that said, "So just say ok? Or are you going to fax me something to sign?" Jackson Hewitt responded via e-mail, "Your consent via e-mail is sufficient, as we already have the signature pages you previously submitted." Jackson Hewitt received no further communication from FasTax. Apparently, Jackson Hewitt replaced the pages containing handwritten notes with "clean" copies and sent an executed copy of an unmarked Release back to FasTax. FasTax alleges that it promptly contacted Jackson Hewitt officials to dispute Jackson Hewitt's actions. On Dec. 21, 2011, the Trust filed a motion to establish a bar date for filing proofs of claim. On Jan. 18, 2012, the Bankruptcy Court entered an order, establishing a Feb. 26, 2012 bar date for filing proofs of claim. The Bar Date Order required Jackson Hewitt to notify all Trust Creditors of the bar date. On Feb. 6, 2012, 20 days before the bar date, FasTax's counsel sent a letter via certified mail accusing Jackson Hewitt of illegally taking FasTax's business assets in the Idaho Territories as of summer 2010. In spite of the Bar Date Order and the Feb. 6, 2012 letter, Jackson Hewitt sent FasTax no Notice of Bar Date. FasTax filed no notice of claim. On May 14, 2013, Plaintiff filed a nine-count Complaint. Count 9 sought a declaration that the Release is invalid. Count 5 contained a cause of action under the New Jersey Franchise Act. The other seven Counts contained common law causes of action seeking damages. Jackson Hewitt argues that its bankruptcy discharged FasTax's claim. In opposition, FasTax argues that the failure to send a Notice of Bar Date was a due process violation that permits its claims to survive the bankruptcy discharge. Because FasTax was a known creditor which did not receive actual notice of the bar date, the discharge is not applicable to FasTax's claim. Judge Martini ruled that Jackson Hewitt's motion is granted with respect to Count 5 only. Jackson Hewitt's motion to dismiss is otherwise denied. FasTax's motion to declare the Release invalid with respect to FasTax's claims against Jackson Hewitt pertaining to the Idaho Territories is denied. The case is, FASTAX, INC., Plaintiff, v. JACKSON HEWITT, INC., et al. Defendants, No. 13-3078 (WJM) (D. N.J.). A copy of the District Court's March 20, 2014 Opinion is available at http://is.gd/5EmwwYfrom Leagle.com. FASTAX, INC., Plaintiff, is represented by ERIC P. BLAHA, LAROCCA HORNIK ROSEN GREENBERG & BLAHA LLP. JACKSON HEWITT, INC., Defendant, is represented by JAMES SIMON COONS, ANSA ASSUNCAO, LLP. Counsel also represented defendants SONDI & ASSOCIATES, LLC, and GERALD D. BREUNIG. About Jackson Hewitt Parsippany, New York-based Jackson Hewitt Tax Service Inc., aka JHTS Inc., provides computerized preparation services for federal, state and local individual income tax returns in the United States through a nationwide network of franchised and company-owned offices operating under the brand name Jackson Hewitt Tax Service. The Company has 700 franchisees that collectively operated a total of 4,846 offices. The Company also operates 1,110 company-owned offices. Jackson Hewitt and its affiliates filed for Chapter 11 bankruptcy (Bankr. D. Del. Lead Case No. 11-11587) on May 24, 2011. Judge Mary F. Walrath presided over the bankruptcy case. Skadden, Arps, Slate, Meagher & Flom LLP, served as the Debtors' bankruptcy counsel. Alvarez & Marsal North America, LLC, served as their financial advisor. Moelis & Company LLC acted as investment banker. The Garden City Group, Inc., served as the Debtors' Claims and Noticing Agent. The Debtors also tapped Deloitte & Touche to serve as tax advisors and Kekst & Company to serve as communications advisors. BDO Financial served as financial advisors to the Official Committee of Unsecured Creditors. As of June 30, 2011, Jackson Hewitt's balance sheet showed $390.3 million in total assets, $432.9 million in total liabilities, and a stockholders' deficit of $42.6 million. Jackson Hewitt on Aug. 8, 2011, received confirmation of its "pre-packaged" Plan of Reorganization. Under the Plan, Jackson Hewitt emerged as a private company with Bayside Capital becoming the majority owner. Bayside is an affiliate of Miami, Florida- based H.I.G. Capital, and the largest holder of Jackson Hewitt's secured debt prior to its restructuring. JAMES C. SCHLEHUBER: 8th Cir. Affirms Conversion to Chapter 11 -------------------------------------------------------------- After James Schlehuber filed a voluntary Chapter 7 bankruptcy petition, one of his creditors moved under 11 U.S.C. Sec. 706(b) to convert the petition to one under Chapter 11. After a hearing, the Hon. Thomas L. Saladino, Chief Judge, United States Bankruptcy Court for the District of Nebraska, granted the motion, and the Bankruptcy Appellate Panel affirmed. Mr. Schlehuber appeals to the United States Court of Appeals, Eighth Circuit, arguing that the bankruptcy court applied an improper legal standard, and abused its discretion, in granting the motion to convert. He also renews his constitutional challenge to certain bankruptcy statutes. In a March 19, 2014 per curiam decision available at http://is.gd/G2yXNFfrom Leagle.com, a three-judge panel of the Eighth Circuit declined to address the constitutional challenges, because Mr. Schlehuber abandoned them in his appeal to the BAP. "We find no basis to conclude that the court applied an improper legal standard or abused its discretion in granting the motion to convert," the Appeals Court said. The bankruptcy case is, In re: James C. Schlehuber, also known as Jim Schlehuber, Formerly doing business as J.R.G., L.L.C., Formerly doing business as The Radar & Riley Limited Partnership, Formerly doing business as March Plan Investments, L.L.C., Formerly doing business as Rockford Omaha, L.L.C., Formerly doing business as January Real Group, L.L.C., Debtor. The appellate case is, James C. Schlehuber, Appellant, v. Fremont National Bank & Trust Company; Nancy J. Gargula, U.S. Trustee, Appellees, No. 13-2070 (8th Cir.). JAMES RIVER: Gets NASDAQ Listing Non-Compliance Notice ------------------------------------------------------ James River Coal Company on March 24 disclosed that it has received notice on March 18, 2014 from the Nasdaq Stock Market notifying the Company that it is not in compliance with Nasdaq Marketplace Rule 5450(a)(1) because the bid price of the Company's common stock closed below the required minimum $1.00 per share for the previous thirty consecutive business days. The March 18 Notice indicated that, in accordance with Nasdaq Marketplace Rule 5810(c)(3)(A), the Company has a period of 180 calendar days, until September 15, 2014, to regain compliance with Rule 5450(a)(1). If at any time before September 15, 2014 the bid price of the Company's common stock closes at $1.00 per share or more for a minimum of ten consecutive business days, Nasdaq will notify the Company that it has regained compliance with Rule 5450(a)(1). In the event the Company does not regain compliance with Rule 5450(a)(1) prior to the expiration of the 180-day period (or such later date as Nasdaq may provide by extension), Nasdaq will notify the Company that its common stock is subject to delisting. On March 20, 2014, the Company received a notice from Nasdaq stating that the Company is not in compliance with the continued listing requirements of Nasdaq Marketplace Rule 5250(c)(1) because its Annual Report on Form 10-K for its fiscal year ended December 31, 2013 was not timely filed with the Securities and Exchange Commission. In a Form 12b-25 Notification of Late Filing and a Current Report on Form 8-K, both filed with the SEC on March 17, 2014, the Company disclosed that it was unable to timely file its 2013 10-K without unreasonable effort and expense because of (i) the strategic review process announced on February 7, 2014, and (ii) the Company's inability to complete the financial statements and other disclosures to be included in its 2013 10-K because of the time requirements of the strategic review process and the significant accounting and reporting issues related to both the strategic review process and the previously announced adjustments to the Company's mining operations. The Company has sixty calendar days from the date thereof (i.e., May 19, 2014) to file the 2013 10-K or to submit to Nasdaq a plan to otherwise regain compliance with the Nasdaq Marketplace Rules. If the Company submits a plan that is acceptable to Nasdaq, then Nasdaq may grant the Company an extension of up to 180 days from the prescribed due date for filing the 2013 10-K (i.e., until September 15, 2014). James River Coal Company -- http://www.jamesrivercoal.com-- is one of the leading coal producers in Central Appalachia and the Illinois Basin. The company sells metallurgical, bituminous steam and industrial-grade coal to electric utility companies and industrial customers both domestically and internationally. The Company's operations are managed through operating subsidiaries located throughout eastern Kentucky, southern West Virginia and southern Indiana. JONES ENERGY: Moody's Assigns 'B2' CFR & Rates $300MM Notes 'B3' ---------------------------------------------------------------- Moody's Investors Service assigned a first-time B2 Corporate Family Rating to Jones Energy Holdings, LLC (JEH). Moody's also assigned a B3 rating to $300 million of senior unsecured notes issued jointly by Jones Energy Holdings, LLC and Jones Energy Finance Corp -- the proceeds will be used to retire a $160 million second lien term loan and to reduce debt under the company's $1 billion revolving credit facility. Moody's also assigned a SGL-2 Speculative Grade Liquidity Rating to reflect JEH's good liquidity position subsequent to the note offering. The outlook is stable. "Jones Energy fits squarely into our B2 CFR universe of exploration and production companies," said Stuart Miller, Moody's Vice President and Senior Credit Officer. "The company appears to be well-positioned to grow its production and reserve base, with the capacity to fund future capital expenditures mostly from internally generated cash flow." Ratings assigned: Corporate Family Rating of B2 Probability of Default Rating of B2-PD Senior Unsecured Note Rating of B3, 77-LGD5 Speculative Grade Liquidity Rating of SGL-2 Outlook is Stable Ratings Rationale With production around 20,000 boe per day and proved developed reserves approaching 50 million boe, JEH is comparable in scale to numerous B2 rated peer companies, including Carrizo Oil and Gas, Comstock Resources, Rex Energy, Templar Energy, and WildHorse Resources. The company is focused squarely on the Anadarko and Arkoma Basins where it has built a reputation as a low-cost driller and operator. While leverage, with debt to average daily production of $33,000 and debt to proved developed reserves around $13.50 is comparable to higher rated B1 companies, JEH's rating is limited by its smaller scale. JEH has identified nearly 2,500 drilling locations on its leases. Moody's rating assumes the pace of drilling these locations will allow the vast majority of the capital expenditures to be funded with internally generated cash flow. In so doing, based on historical operating efficiency and previous well results, Moody's expects to see leverage fall over the next two to three years. The growth in reserves and production while working down leverage could provide the impetus for a rating upgrade sometime after 2015. JEH has good liquidity -- Moody's has assigned a Speculative Grade Liquidity Rating of SGL-2. The company will likely modestly outspend its cash flow over the next 12 to 18 months to expand its asset base. Moody's has assumed that the company could cut back its capital expenditures to $90 million annually to maintain its production and reserves which would result in substantial free cash flow. The expected outspend of cash flow can easily be financed under the company's committed revolving credit facility. Following the December 2013 Sabine acquisition, the borrowing base was increased to $575 million. Pro forma for the inaugural bond offering, Moody's expects availability to be about $250 million, well in excess of the forecast outspend of internally generated cash flow over the next two years. The revolving credit contains two financial maintenance covenants: Debt/EBITDAX must remain less than 4.0x, and the Current Ratio must be greater than 1.0x. It appears that JEH would need to double its debt to be at risk of tripping either of these covenants. Alternate sources of liquidity are somewhat limited as its assets are pledged as collateral under the revolving credit facility. The size of JEH's senior unsecured debt is small relative to its senior secured credit facility, which under Moody's Loss Given Default Methodology, would suggest that the unsecured bonds should be double-notched below the CFR. Moody's believes a single notch is more appropriate given the expectation that the company will continue to issue senior notes from time to time to fund its future growth while using the revolving credit agreement as a funding bridge between subsequent bond offerings. The rating outlook is stable -- the company is solidly positioned in its current rating. JEH could be upgraded as its scale increases and comes more in line with our B1 rated E&P companies over the next few years. To be considered for an upgrade, average daily production should be approaching 35,000 boe per day, proved developed reserves should be about 100 million barrels, and the leveraged full-cycle ratio should be around 2.0x. A downgrade becomes likely if JEH's leverage as measured by debt to average daily production climbs above $40,000 per boe for an extended period or if debt to proved developed reserves exceeds $15 per boe. The principal methodology used in this rating was the Global Independent Exploration and Production Industry published in December 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. Jones Energy Holdings, LLC is the wholly-owned subsidiary of Jones Energy, Inc., an Austin, TX based publicly-owned independent exploration and production company formed in 1988. JEH operates 107,000 net acres in the Anadarko and Arkoma Basins, focusing on the Cleveland and Woodford formations. JONES ENERGY: S&P Assigns 'B' CCR & Rates $300MM Sr. Notes 'B-' --------------------------------------------------------------- Standard & Poor's Ratings Service said it assigned its 'B' corporate credit rating to Jones Energy Inc. The outlook is stable. At the same time, S&P assigned its 'B-' issue-level rating (one notch lower than the corporate credit rating) to the company's proposed $300 million of senior unsecured notes due 2022 with a recovery rating of '5', indicating S&P's expectation of modest (10% to 30%) recovery for lenders in the event of default. "The stable outlook reflects our expectation that the company will maintain adequate liquidity while increasing capital spending to develop its Mid-continent assets," said Standard & Poor's credit analyst Ben Tsocanos. S&P would consider an upgrade if the company were to increase its reserves and production to a level commensurate with higher-rated peers, while maintaining leverage below 3x debt to EBITDA. S&P would consider a downgrade if leverage were to rise above 5x, likely related to production growth being lower than expected, meaningfully higher capital spending or debt-financed acquisition, or if liquidity deteriorates below adequate levels. Declining prices for oil, natural gas, and NGLs could also potentially lead constrained cash flows and leverage in excess of 5x. KCG HOLDINGS: Moody's Affirms 'B1' Corporate Family Rating ---------------------------------------------------------- Moody's Investors Service affirmed the B1 Corporate Family Rating (CFR) of KCG Holdings, Inc. and placed the B2 rating on KCG's second-lien Secured Notes on review for upgrade. The Ba3 rating on KCG's first-lien Senior Secured Facility was also affirmed. The rating outlook on the CFR and first lien senior secured facility remains stable. Ratings Rationale These rating actions follow the substantial reduction in the first-lien facility. Since July 2013, KCG has repaid $485 million of its first-lien debt, leaving $50 million outstanding. The rating affirmation of the B1 CFR reflects KCG's solid market- making and wholesale execution platforms as well as its liquid balance sheet. The affirmation also reflects merger progress to date in terms of consolidating subsidiaries, disposing of non-core assets and reducing expenses which has freed up cash for debt reduction. The corporate family rating also incorporates important long-term challenges facing KCG including maintaining the speed and reliability of its trading platforms, the strength of its risk controls and its ability to adapt to future regulatory change that may affect high-frequency trading. As a result of the debt reduction since the merger, the subordination of the second-lien Secured Notes has been reduced. If this reduced level of subordination is sustained, Moody's believes there is the potential for a one-notch upgrade of the second-lien notes due to the likelihood that in the event of default, the second-line notes would benefit from a lower severity of loss. The review will focus on KCG's future financial policy and capital structure. KIDSPEACE CORP: Lease Decision Period Extended Thru April --------------------------------------------------------- The Bankruptcy Court, in a bridge order dated March 11, 2014, ordered that KidsPeace Corporation, et al.'s time to assume or reject certain non-residential real property leases is extended for one week after the date of the hearing of the motion. A hearing on the motion is scheduled for April 3, at 11:00 a.m. In their March 7 application, the Debtors related that they are parties to 31 non-residential real property leases in various locations throughout the country. The properties subject to such leases have been utilized by the Debtors for the purposes of the Debtors' daily operations. The Debtors requested for permission to assume the unexpired leases listed on Exhibit A; and reject the leases listed on Exhibit B. See: http://bankrupt.com/misc/KIDSPEACECORP_lease.pdf About KidsPeace Corp. KidsPeace Corp., a provider of behavioral services for children, filed a petition for Chapter 11 reorganization (Bankr. E.D. Pa. Case No. 13-14508) on May 21, 2013, in Reading, Pennsylvania. KidsPeace operates a 96-bed pediatric psychiatric hospital in Orefield, Pennsylvania. Assets are $86.7 million, and debt on the books is $158.6 million, according to a court filing. The Debtor, which sought bankruptcy protection with eight affiliates, tapped Norris McLaughlin & Marcus, P.A. as counsel; EisnerAmper LLP as financial advisor, and Rust Omni as claims and notice agent. Assets total $158,587,999 at the end of 2012. The Debtors owe approximately $56,206,821 in bond debt, and they have been told that their pension liability is allegedly about $100,000,000 of which the Debtors currently reflect $83,049,412 on their books. KidsPeace sought Chapter 11 (i) as a means to implement a negotiated restructuring of bond debt currently aggregating approximately $51,310,000 plus accrued interest to a reduced amount of approximately $24 million in new 30-year bonds with interest at 7.5 percent, and (ii) to continue on-going negotiations with the Pension Benefit Guaranty Corporation in hopes of reducing the PBGC asserted obligation of $100+ million to an amount that the Debtors can reasonably expect to satisfy. The Debtor disclosed $157,930,467 in assets and $168,768,207 in liabilities as of the Chapter 11 filing. Since March 2012, MK has been exploring possible affiliation or acquisition opportunities; however, no offer of an affiliation or acquisition has been presented to the Debtors. Gemino Healthcare Finance, LLC, the prepetition revolving lender, is represented by James S. Rankin, Jr., Esq., at Parker, Hudson, Rainer & Dobbs LLP; and Weir & Partners LLP's Walter Weir, Jr., Esq. UMB Bank, N.A., on behalf of bondholders, Performance Food Group d/b/a AFI, W.B. Mason Co., Inc., Pension Benefit Guaranty Corporation, and Teresa Laudenslager were appointed to an official committee of unsecured creditors in the Debtors' cases. The Official Committee of Unsecured Creditors is represented by Fitzpatrcik Lentz & Bubba, P.C., and Lowenstein Sandler LLP as counsel. FTI Consulting, Inc. serves as the panel's financial advisor. The bankruptcy court will convene a hearing on April 3, 2014, at 11:00 a.m., to consider confirmation of the Debtors' First Modified Joint Plan of Reorganization. KOO YUEN LIFE: Case Summary and 3 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: Koo Yuen Life Insurance Trust C/O Koo Yuen, Trustee 9221 Mayfield Dr. Bethesda, MD 20817 Case No.: 14-14571 Chapter 11 Petition Date: March 24, 2014 Court: United States Bankruptcy Court District of Maryland (Greenbelt) Debtor's Counsel: Thomas F. DeCaro, Jr., Esq. Marla L. Howell, Esq. DECARO & HOWELL, P.C. 14406 Old Mill Road, Ste. 201 Upper Marlboro, MD 20772 Tel: (301) 464-1400 Email: tfd@erols.com mlhowe1@juno.com Total Assets: $1.88 million Total Liabilities: $2.93 million The petition was signed by Koo L. Yuen, Trustee. A list of the Debtor's three largest unsecured creditors is available for free at http://bankrupt.com/misc/mdb14-14571.pdf LANTHEUS MEDICAL: Moody's Affirms 'Caa2' CFR; Outlook Positive -------------------------------------------------------------- Moody's Investors Service changed the outlook of Lantheus Medical Imaging, Inc. to positive from negative and upgraded the Speculative Grade Liquidity Rating to SGL-3 from SGL-4. At the same time, Moody's affirmed the company's Caa2 Corporate Family Rating, Caa2-PD Probability of Default Rating and Caa2 senior unsecured rating. Ratings Affirmed: Corporate Family Rating at Caa2 Probability of Default Rating at Caa2-PD $400 million senior unsecured notes at Caa2 (LGD4, 56%) Rating upgraded: Speculative Grade Liquidity Rating to SGL-3 from SGL-4 "The combination of rising DEFINITY sales and the impact of ongoing cost reductions have improved Lantheus's liquidity position, reversing downward rating momentum," said Michael Levesque, Senior Vice President. Ratings Rationale Lantheus's Caa2 Corporate Family Rating reflects Moody's expectations of very high leverage in 2014, weak cash flow, and headwinds on several of its franchises stemming from pricing pressure. The rating also considers the risk associated with its high reliance on Molybdenum supply, critical for the manufacturing of its key nuclear products, TechneLite, Cardiolite and Neurolite, its small size, and high concentration with large customers. At the same time, quarterly revenue and earnings performance continues to improve sequentially, albeit from negative profitability. These trends are supported by growth in DEFINITY, Lantheus's ultrasound contrast imaging agent. While new manufacturing partners and stockpile inventories are positive, Lantheus's supply chain is reliant on third parties, and any unforeseen challenges at these suppliers could impact Lantheus's ability to meet customer demand. A combination of internal liquidity and availability under the asset-backed revolver appear sufficient for Lantheus to make interest payments on its senior notes, contributing to the upgrade in the Speculative-Grade Liquidity Rating to SGL-3 from SGL-4. The positive outlook reflects an improving financial position based on underlying earnings trends and liquidity. The ratings could be upgraded if positive sales trends in Definity continue and if the company remains on a solid path to generating sustainable positive free cash flow and sustainable debt/EBITDA below 7.0 times. Conversely, the ratings could be downgraded if supply issues or other sales disruptions cause liquidity to substantially weaken and jeopardize the company's ability to meet its interest payments. Headquartered in Billerica, Massachusetts, Lantheus Medical Imaging, Inc. ("Lantheus") is a leading global manufacturer of medical imaging products and a wholly-owned subsidiary of Lantheus MI Intermediate, Inc. (the audited entity), which in turn is the wholly-owned subsidiary of Lantheus MI Holdings, Inc. (the "parent"). The company manufactures and distributes products primarily for cardiovascular diagnostic imaging. Lantheus, which was previously a subsidiary of Bristol-Myers Squibb, was acquired by Avista Capital Partners in January 2008. The principal methodology used in this rating was the Global Pharmaceutical Industry published in December 2012. Other methodologies used include Loss Given Default for Speculative- Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. LCI HOLDING: 'Gift' Settlement Can Bypass Claim Priority Rules -------------------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that the practice in Delaware of allowing buyers to make "gifts" to some creditors of bankrupt companies while bypassing higher-ranking creditors is safe, at least for now. According to the report, in the Chapter 11 reorganization of former hospital owner LifeCare Holdings Inc., the U.S. Justice Department on behalf of the Internal Revenue Service appealed from the bankruptcy court's approval of a $360 million sale of LifeCare's business in exchange for debt owing to secured creditors. In a March 10 opinion, U.S. District Judge Sue L. Robinson denied the government a stay pending appeal and dismissed the appeal, concluding that Judge Gross didn't make a clearly erroneous finding of fact when he decided that the money in question belonged to the buyer and wasn't property of the bankrupt estate, the report related. In December, Gross ruled that LifeCare's Chapter 11 case will be dismissed once the appeal challenging approval of sale is fully resolved, the report further related. The appeal was In re LCI Holding Co., 13-cv-00924, U.S. District Court, District of Delaware (Wilmington). About LifeCare LCI Holding Company, Inc., and its affiliates, doing business as LifeCare Hospitals, operate eight "hospital within hospital" facilities and 19 freestanding facilities in 10 states. The hospitals have about 1,400 beds at facilities in Louisiana, Texas, Pennsylvania, Ohio and Nevada. LifeCare is controlled by Carlyle Group, which holds 93.4% of the stock following a $570 million acquisition in August 2005. LCI Holding Company, Inc., and its affiliates, including LifeCare Holdings Inc., sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 12-13319) on Dec. 11, 2012, with plans to sell assets to secured lenders. The Debtors are represented by Anthony W. Clark, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, in Wilmington, Delaware; Kenneth S. Ziman, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, in New York; and Felicia Gerber Perlman, Esq., and Matthew N. Kriegel, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, in Chicago, Illinois. Rothschild Inc. is the financial advisor. Huron Management Services LLC will provide the Debtors an interim chief financial officer and certain additional personnel; and (ii) designate Stuart Walker as interim chief financial officer. The steering committee of lenders is represented by attorneys at Akin Gump Strauss Hauer & Feld LLP and Blank Rome LLP. The agent under the prepetition and postpetition secured credit facility is represented by Simpson Thacher & Barlett LLP. The Debtors disclosed assets of $422 million and liabilities totaling $575.9 million as of Sept. 30, 2012. As of the bankruptcy filing, total long-term obligations were $482.2 million consisting of, among other things, institutional loans and unsecured subordinated loans. A total of $353.4 million is owing under the prepetition secured credit facility. A total of $128.4 million is owing on senior subordinated notes. LifeCare Hospitals of Pittsburgh, LLC, a debtor-affiliate disclosed $24,028,730 in assets and $484,372,539 in liabilities as of the Chapter 11 filing. The Official Committee of Unsecured Creditors is represented by Pachulski Stang Ziehl & Jones LLP. FTI Consulting, Inc., serves as its financial advisor. LIGHTSQUARED INC: Director Says Exit Plan Is Fair To Dish Chair --------------------------------------------------------------- Law360, New York (March 19, 2014, 4:06 PM ET) -- An independent director of LightSquared Inc. charged with overseeing the company's efforts to exit bankruptcy said Wednesday that the proposed reorganization plan was not designed to "punish" Dish Network Corp. Chairman Charlie Ergen, who holds about $1 billion of the LightSquared's debt. During questioning before U.S. Bankruptcy Judge Shelley C. Chapman at the start of a trial over the confirmation of LightSquared's bankruptcy exit plan, Christopher Rogers, a telecommunications consultant and member of the special committee appointed to guide LightSquared through its Chapter 11 case, told... 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. LIME ENERGY: To Hold "Say-on-Pay" Votes Every Three Years --------------------------------------------------------- At the 2013 annual meeting of stockholders of Lime Energy Co., the Company's stockholders voted on, among other matters, an advisory proposal on the frequency of holding future advisory votes on executive compensation. The Company's stockholders determined, on an advisory basis, that the preferred frequency of an advisory vote on the Company's executive compensation is every three years. Consistent with the stated preference of the Company's stockholders, the Board of Directors of the Company determined that the Company will include an advisory vote on executive compensation in the Company's proxy materials once every three years until the next required vote on the frequency of shareholder votes on the compensation of executives. About Lime Energy Headquartered in Huntersville, North Carolina, Lime Energy Co. -- http://www.lime-energy.com-- is engaged in planning and delivering clean energy solutions that assist its clients in their energy efficiency and renewable energy goals. The Company's solutions include energy efficient lighting upgrades, energy efficient mechanical and electrical retrofit and upgrade services, water conservation, building weatherization, on-site generation and renewable energy project development and implementation. The Company provides energy solutions across a range of facilities, from high-rise office buildings, distribution facilities, manufacturing plants, retail sites, multi-tenant residential buildings, mixed use complexes, hospitals, colleges and universities, government sites to small, single tenant facilities. Lime Energy disclosed in regulatory filings in July 2013 it is in discussions with PNC Bank about entering into a forbearance agreement in which they would agree not to accelerate a loan for a period of time while the Company attempts to correct the gas flow issue and sell its landfill-gas facility. The bank is considering the Company's request. As of Sept. 30, 2013, the Company had $33.15 million in total assets, $26.70 million in total liabilities and $6.45 million in total stockholders' equity. For the nine months ended Sept. 30, 2013, the Company reported a net loss of $12.58 million. The Company incurred a net loss of $31.81 million in 2012 as compared with a net loss of $18.93 million in 2011. BDO USA, 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 cash flow from operations that raise substantial doubt about its ability to continue as a going concern. LONESTAR RESOURCES: S&P Gives 'B-' CCR & Rates $200MM Notes 'CCC+' ------------------------------------------------------------------ Standard & Poor's Ratings Services said it assigned its 'B-' corporate credit rating to Fort Worth, Texas-based Lonestar Resources America Inc. The outlook is stable. At the same time, S&P assigned its 'CCC+' issue rating (one notch below the corporate credit rating) to Lonestar's proposed $200 million unsecured notes due 2019. The recovery rating is '5', indicating S&P's expectation of modest (10% to 30%) recovery if the company defaults on a payment. The company plans to use proceeds from the proposed offering primarily to repay its existing debt. The ratings on Lonestar reflect S&P's assessment of the company's "vulnerable" business risk , its "highly leveraged" financial risk profile, and its "adequate" liquidity profile. Ratings reflect its very small reserve and production profile, its lack of geographic diversity, its limited operating track record, and its aggressive capital spending plans. "Partially buffering these weaknesses are its exposure to crude oil prices and thus its above-average profitability relative to rated peers," said Standard & Poor's credit analyst Marc Bromberg. LOS ANGELES DODGERS: Are Dismissed from Bankruptcy Court -------------------------------------------------------- Bill Shaikin, writing for Los Angeles Times, reported that the greatest stain on the history of a proud franchise was officially dissolved, when U.S. Bankruptcy Judge Kevin Gross signed a final decree ending the Dodgers' time in his court. According to the report, the bankruptcy cases of the Dodgers and related entities "are hereby closed," Judge Gross wrote in an order that ended the team's stay in bankruptcy court at 995 days. Judge Gross signed the order as the Dodgers flew over the Pacific Ocean en route to Australia for the season opener against the Arizona Diamondbacks, the report related. Frank McCourt, the Dodgers' former owner, took the team into bankruptcy on June 27, 2011, after Commissioner Bud Selig rejected a proposed television contract that would have served as McCourt's financial lifeline, the report further related. After Judge Gross ruled that he would not allow McCourt to turn the bankruptcy proceedings "into a trial on the commissioner," McCourt agreed to sell the team -- with the court, not Selig, having final authority to approve the sale, the report added. About Los Angeles Dodgers Los Angeles Dodgers LLC operates the Los Angeles Dodgers, a professional Major League Baseball club in the Los Angeles metropolitan area. Frank McCourt, a Boston real-estate developer who unsuccessfully bid for the Boston Red Sox, bought the Dodgers from Rupert Murdoch's Fox Entertainment Group Inc. in 2004 for $330 million. Mr. McCourt also bought the Dodgers Stadium from Fox for $100 million. Los Angeles Dodgers LLC filed for bankruptcy protection (Bankr. D. Del. Lead Case No. 11-12010) on June 27, 2011, after MLB Commissioner Bud Selig rejected a television deal with News Corp.'s Fox Sports, leaving Mr. McCourt unable to make payroll for June 30 and July 1. Fox Sports has exclusive cable television rights for Dodgers games until the end of 2013 baseball season. Chapter 11 filings were also made for LA Real Estate LLC, an affiliated entity which owns Dodger Stadium, and three other related holding companies. According to Forbes, the Dodgers is worth about $800 million, making it the third most valuable baseball team after the New York Yankees and the Boston Red Sox. Judge Kevin Gross presides over the case. Lawyers at Young, Conaway, Stargatt & Taylor and Dewey & LeBoeuf LLP serve as the Debtors' bankruptcy counsel. Epiq Bankruptcy Solutions LLC is the claims and notice agent. Public relations specialist Kekst and Company has been hired for crisis support. Covington & Burling LLP serves as special counsel. An official committee of unsecured creditors has been appointed in the case. The panel has tapped Lazard Freres & Co. as financial adviser and investment banker, and Morrison & Foerster LLP and Pinckney, Harris & Weidinger, LLC as counsel. The LA Dodgers is the 12th sports team in North America to have sought bankruptcy protection. The reorganization is being financed with a $150 million unsecured loan from the Commissioner of Major League Baseball. The loan gives the Commissioner few of the controls lenders often demanded from bankrupt companies. The Dodgers emerged from bankruptcy on April 30, 2012. The plan is based on a $2.15 billion sale of the baseball club and Dodger Stadium to Guggenheim Baseball Management. The plan pays all creditors in full, with the excess going to Mr. McCourt. MCC FUNDING: Voluntary Chapter 11 Case Summary ---------------------------------------------- Debtor: MCC Funding LLC c/o WEREGP LLC 606 Post Road East, 614 Westport, CT 06880 Case No.: 14-10782 Chapter 11 Petition Date: March 24, 2014 Court: United States Bankruptcy Court Southern District of New York (Manhattan) Debtor's Counsel: Scott A. Steinberg, Esq. LAW OFFICES OF SCOTT A. STEINBERG 626 RXR Plaza Uniondale, NY 11556 Tel: (516) 522-2566 Fax: (516) 522-2530 Email: ssteinberg@saslawfirm.net Estimated Assets: $10 million to $50 million Estimated Debts: $10 million to $50 million The petition was signed by Joshua Rizack, authorized signatory. The Debtor did not file a list of its largest unsecured creditors when it filed the petition. MCCLATCHY CO: Posts $18.8 Million Fiscal 2013 Net Income -------------------------------------------------------- The McClatchy Company filed with the U.S. Securities and Exchange Commission its annual report on Form 10-K disclosing net income of $18.80 million on $1.24 billion of net revenues for the year ended Dec. 29, 2013, as compared with a net loss of $144,000 on $1.30 billion of net revenues for the year ended Dec. 30, 2012. As of Dec. 29, 2013, the Company had $2.61 billion in total assets, $2.37 billion in total liabilities, and $240.38 million in stockholders' equity. A copy of the Form 10-K is available for free at: http://is.gd/IPKGp0 About The McClatchy Company Sacramento, Cal.-based The McClatchy Company (NYSE: MNI) -- http://www.mcclatchy.com/-- is the third largest newspaper company in the United States, publishing 30 daily newspapers, 43 non-dailies, and direct marketing and direct mail operations. McClatchy also operates leading local Web sites in each of its markets which extend its audience reach. The Web sites offer users comprehensive news and information, advertising, e-commerce and other services. Together with its newspapers and direct marketing products, these interactive operations make McClatchy the leading local media company in each of its premium high growth markets. McClatchy-owned newspapers include The Miami Herald, The Sacramento Bee, the Fort Worth Star-Telegram, The Kansas City Star, The Charlotte Observer, and The News & Observer (Raleigh). * * * McClatchy carries a 'Caa1' corporate family rating from Moody's Investors Service. In May 2011, Moody's changed the rating outlook from stable to positive following the company's announcement that it closed on the sale of land in Miami for $236 million. The outlook change reflects Moody's expectation that McClatchy will utilize the net proceeds to reduce debt, including its underfunded pension position, which will reduce leverage by approximately half a turn and lower required contributions to the pension plan over the next few years. McClatchy Co. carries a 'B-' Corporate Credit Rating from Standard & Poor's Ratings Services. MEDIA GENERAL: Reports $4.3 Million 2013 Net Income --------------------------------------------------- Media General, Inc., filed with the U.S. Securities and Exchange Commission its annual report on Form 10-K disclosing net income of $4.35 million on $269.91 million of net operating revenue for the year ended Dec. 31, 2013, as compared with net income of $35.96 million on $228.18 million of net operating revenue for the year ended Dec. 31, 2012. The Company's balance sheet at Dec. 31, 2013, showed $1.92 billion in total assets, $1.18 billion in total liabilities and $735.23 million in total stockholders' equity. "The Company's ability to make payments on, or repay or refinance, its indebtedness and fund planned capital expenditures will depend largely upon the Company's future operating performance. The Company's future performance, to a certain extent, is subject to general economic, financial, competitive, legislative, regulatory and other factors that are beyond its control. The Company cannot be certain it will generate sufficient cash flow from operations or that future borrowings will be available in amounts sufficient to enable the Company to pay its current indebtedness or to fund other liquidity needs," the Company said in the Annual Report. A copy of the Form 10-K is available for free at: http://is.gd/bfrcU9 About Media General Richmond, Virginia-based Media General Inc. (NYSE: MEG) -- http://www.mediageneral.com/-- is an independent communications company with interests in newspapers, television stations and interactive media in the United States. Media General, Inc., closed on its business combination with New Young Broadcasting Holding Co., Inc., on Nov. 12, 2013. * * * As reported by the Troubled Company Report on July 10, 2013, Moody's Investors Service upgraded Media General, Inc.'s Corporate Family Rating to B1 from Caa1 reflecting the marked improvement in credit metrics pro forma for the pending stock merger with New Young Broadcasting Holding Co., Inc. In the July 12, 2013, edition of the TCR, Standard & Poor's Ratings Services raised its corporate credit rating on Richmond, Va.-based local TV broadcaster Media General Inc. to 'B+' from 'B'. "The rating action reflects the improvement in discretionary cash flow from the refinancing and our expectation that trailing- eight-quarter leverage will remain at 6x or below over the intermediate term," said Standard & Poor's credit analyst Daniel Haines. METRO AFFILIATES: Claims Bar Date Set for April 21 -------------------------------------------------- Creditors of Metro Affiliates, Inc. et al must file their proofs of debt not later than April 21, 2014. Staten Island, New York-based Metro Affiliates, Inc., and its subsidiaries sought protection under Chapter 11 of the Bankruptcy Code on Nov. 4, 2013 (Bankr. S.D.N.Y. Case No. 13-13591). The case is assigned to Judge Sean Lane. Lisa G. Beckerman, Esq., and Rachel Ehrlich Albanese, Esq., at Akin Gump Strauss Hauer & Feld LLP, in New York; and Scott L. Alberino, Esq., at Akin Gump Strauss Hauer & Feld LLP, in Washington, D.C., represent the Debtors. Silverman Shin & Byrne PLLC serves as special counsel. Rothschild Inc. serves as the Debtors' investment banker, while Kurtzman Carson Consultants LLC serves as their claims and noticing agent. Wells Fargo Bank, National Association, as agent for a consortium of DIP lenders, is represented by Jonathan N. Helfat, Esq., at Otterbourg, Steindler, Houston & Rosen, P.C., in New York. The Bank of New York Mellon as indenture trustee and collateral agent for prepetition noteholders, is represented by James Gadsden, Esq., at Carter, Ledyard & Milburn LLP, in New York. Certain Noteholders are represented by Kristopher M. Hansen, Esq., at Stroock & Stroock & Lavan LLP, in New York. The U.S. has appointed a three-member official committee of unsecured creditors represented by Farrell Fritz, P.C. PricewaterhouseCoopers LLP serves as the Committee's financial advisors. This is Metro Affiliates' third trip to Chapter 11. The Company, together with its subsidiaries, previously sought protection under Chapter 11 of the Bankruptcy Code on Aug. 16, 2002 (In re Metro Affiliates, Inc., Case No. 02-42560 (PCB), Bankr. S.D.N.Y.). A plan in the second Chapter 11 case was confirmed in September 2003. The first bankruptcy was in 1994. MF GLOBAL: SIPA Trustee Must Disclose Non-Attorney Fees & Costs --------------------------------------------------------------- Bankruptcy Judge Martin Glenn, who oversees the SIPA liquidation proceedings involving MF Global Inc., has granted, in part, and denied, in part, Knighthead Capital Management LLC's "Motion for Order Requiring Costs and Expenses of Persons Hired by SIPA Trustee Pursuant to Section 78fff-1 (a)(1) of SIPA to be Disclosed and Subject to Court Approval". Knighthead seeks an order requiring disclosure and court approval of the fees and expenses incurred by the non-attorney professionals hired by James W. Giddens, who serves as the SIPA trustee for MFGI. under the Securities Investor Protection Act of 1970, as amended, 15 U.S.C. Sec. 78aaa et seq. Knighthead is a large indirect creditor of MF Global Holdings, Ltd., a debtor in a chapter 11 proceeding. On Jan. 15, 2014, Knighthead purchased a $75,000 portion of an allowed claim against MFGI, and two weeks later, Knighthead filed the Motion. The SIPA Trustee and the Securities Investor Protection Corporation opposed. According to Judge Glenn, this is the first time in the 43-year history of SIPA that a creditor of a failed broker-dealer has asked for this relief. Judge Glenn says SIPA does not require court approval of payments to a SIPA trustee's non-attorney professionals. Only SIPC need authorize those payments. But the Court, in assessing the reasonableness of the Trustee's own fees and expenses, must consider the Trustee's oversight of his non- attorney professionals. In that context, the Trustee is required to disclose the fees and expenses of his non-attorney professionals in this case, with sufficient detail to enable the Court to assess the reasonableness of the Trustee's fee applications. A copy of the Court's March 21, 2014 Memorandum Opinion and Order is available at http://is.gd/GSenfsfrom Leagle.com. Quinn Emanuel Urquhart & Sullivan LLP's Susheel Kirpalani, Esq., represents Knighthead. About MF Global New York-based MF Global -- http://www.mfglobal.com/-- was one of the world's leading brokers of commodities and listed derivatives. MF Global provides access to more than 70 exchanges around the world. The firm also was one of 22 primary dealers authorized to trade U.S. government securities with the Federal Reserve Bank of New York. MF Global's roots go back nearly 230 years to a sugar brokerage on the banks of the Thames River in London. On Oct. 31, 2011, MF Global Holdings Ltd. and MF Global Finance USA Inc. filed voluntary Chapter 11 petitions (Bankr. S.D.N.Y. Case Nos. 11-15059 and 11-5058), after a planned sale to Interactive Brokers Group collapsed. As of Sept. 30, 2011, MF Global had $41,046,594,000 in total assets and $39,683,915,000 in total liabilities. On Nov. 7, 2011, the United States Trustee appointed the statutory creditors' committee in the Debtors' cases. At the behest of the Statutory Creditor's Committee, the Court directed the U.S. Trustee to appoint a chapter 11 trustee. On Nov. 28, 2011, the Bankruptcy Court entered an order approving the appointment of Louis J. Freeh, Esq., of Freeh Group International Solutions, LLC, as Chapter 11 trustee. On Dec. 19, 2011, MF Global Capital LLC, MF Global Market Services LLC and MF Global FX Clear LLC filed voluntary Chapter 11 petitions (Bankr. S.D.N.Y. Case Nos. 11-15808, 11-15809 and 11-15810). On Dec. 27, the Court entered an order installing Mr. Freeh as Chapter 11 Trustee of the New Debtors. On March 2, 2012, MF Global Holdings USA Inc. filed a voluntary Chapter 11 petition (Bankr. S.D.N.Y. Case No. 12-10863), and Mr. Freeh also was installed as its Chapter 11 Trustee. Judge Honorable Martin Glenn presides over the Chapter 11 case. J. Gregory Milmoe, Esq., Kenneth S. Ziman, Esq., and J. Eric Ivester, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, serve as bankruptcy counsel. The Garden City Group, Inc., serves as claims and noticing agent. The petition was signed by Bradley I. Abelow, Executive Vice President and Chief Executive Officer of MF Global Finance USA Inc. The Chapter 11 Trustee has tapped (i) Freeh Sporkin & Sullivan LLP, as investigative counsel; (ii) FTI Consulting Inc., as restructuring advisors; (iii) Morrison & Foerster LLP, as bankruptcy counsel; and (iv) Pepper Hamilton as special counsel. The Official Committee of Unsecured Creditors has retained Capstone Advisory Group LLC as financial advisor, while lawyers at Proskauer Rose LLP serve as counsel. The Securities Investor Protection Corporation commenced liquidation proceedings against MF Global Inc. to protect customers. James W. Giddens was appointed as trustee pursuant to the Securities Investor Protection Act. He is a partner at Hughes Hubbard & Reed LLP in New York. Jon Corzine, the former New Jersey governor and co-CEO of Goldman Sachs Group Inc., stepped down as chairman and chief executive officer of MF Global just days after the bankruptcy filing. In April 2013, the Bankruptcy Court approved MF Global Holdings' plan to liquidate its assets. Bloomberg News reported that the court-approved disclosure statement initially told creditors with $1.134 billion in unsecured claims against the parent holding company why they could expect a recovery of 13.4% to 39.1% from the plan. As a consequence of a settlement with JPMorgan, supplemental materials informed unsecured creditors their recovery was reduced to the range of 11.4% to 34.4%. Bank lenders will have the same recovery on their $1.174 billion claim against the holding company. As a consequence of the settlement, the predicted recovery became 18% to 41.5% for holders of $1.19 billion in unsecured claims against the finance subsidiary, one of the companies under the umbrella of the holding company trustee. Previously, the predicted recovery was 14.7% to 34% on bank lenders' claims against the finance subsidiary. MF GLOBAL: Customers One Step Closer to Getting Paid in Full ------------------------------------------------------------ Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that MF Global Inc.'s customers moved a step closer to getting paid in full when a U.S. district judge in New York gave formal approval on March 14 to settle part of a class action. According to the report, the most recent settlement was part of a settlement process generating funds and creating a mechanism for covering losses in accounts that occurred when the defunct commodities broker mishandled $1.6 billion in customers' funds. U.S. District Judge Victor Marrero has approved three settlements this year, including with the U.S. Commodity Futures Trading Commission and JPMorgan Chase & Co., the report noted. The MF Global brokerage trustee, James Giddens, and lawyers for customers cobbled together the arrangement, the report related. Paying customers in full was nevertheless complicated because the bankruptcy court had ruled that proceeds from the settlements didn't represent mishandled customer funds and thus wouldn't be applied automatically to cover the shortfall on their claims. Combined, the settlements provide that the bankrupt estate of the MF Global brokerage will advance the funds to customers to pay their claims in full, the report further related. In return, customers will allow the trustee to continue their suits against MF Global's former chief executive officer, John Corzine, and other executives. The settlement was in DeAngelis v. Corzine (In re MF Global Holdings Ltd. Investment Litigation), 11-bk-07866, U.S. District Court, Southern District of New York (Manhattan). About MF Global New York-based MF Global -- http://www.mfglobal.com/-- was one of the world's leading brokers of commodities and listed derivatives. MF Global provides access to more than 70 exchanges around the world. The firm also was one of 22 primary dealers authorized to trade U.S. government securities with the Federal Reserve Bank of New York. MF Global's roots go back nearly 230 years to a sugar brokerage on the banks of the Thames River in London. On Oct. 31, 2011, MF Global Holdings Ltd. and MF Global Finance USA Inc. filed voluntary Chapter 11 petitions (Bankr. S.D.N.Y. Case Nos. 11-15059 and 11-5058), after a planned sale to Interactive Brokers Group collapsed. As of Sept. 30, 2011, MF Global had $41,046,594,000 in total assets and $39,683,915,000 in total liabilities. On Nov. 7, 2011, the United States Trustee appointed the statutory creditors' committee in the Debtors' cases. At the behest of the Statutory Creditor's Committee, the Court directed the U.S. Trustee to appoint a chapter 11 trustee. On Nov. 28, 2011, the Bankruptcy Court entered an order approving the appointment of Louis J. Freeh, Esq., of Freeh Group International Solutions, LLC, as Chapter 11 trustee. On Dec. 19, 2011, MF Global Capital LLC, MF Global Market Services LLC and MF Global FX Clear LLC filed voluntary Chapter 11 petitions (Bankr. S.D.N.Y. Case Nos. 11-15808, 11-15809 and 11-15810). On Dec. 27, the Court entered an order installing Mr. Freeh as Chapter 11 Trustee of the New Debtors. On March 2, 2012, MF Global Holdings USA Inc. filed a voluntary Chapter 11 petition (Bankr. S.D.N.Y. Case No. 12-10863), and Mr. Freeh also was installed as its Chapter 11 Trustee. Judge Honorable Martin Glenn presides over the Chapter 11 case. J. Gregory Milmoe, Esq., Kenneth S. Ziman, Esq., and J. Eric Ivester, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, serve as bankruptcy counsel. The Garden City Group, Inc., serves as claims and noticing agent. The petition was signed by Bradley I. Abelow, Executive Vice President and Chief Executive Officer of MF Global Finance USA Inc. The Chapter 11 Trustee has tapped (i) Freeh Sporkin & Sullivan LLP, as investigative counsel; (ii) FTI Consulting Inc., as restructuring advisors; (iii) Morrison & Foerster LLP, as bankruptcy counsel; and (iv) Pepper Hamilton as special counsel. The Official Committee of Unsecured Creditors has retained Capstone Advisory Group LLC as financial advisor, while lawyers at Proskauer Rose LLP serve as counsel. The Securities Investor Protection Corporation commenced liquidation proceedings against MF Global Inc. to protect customers. James W. Giddens was appointed as trustee pursuant to the Securities Investor Protection Act. He is a partner at Hughes Hubbard & Reed LLP in New York. Jon Corzine, the former New Jersey governor and co-CEO of Goldman Sachs Group Inc., stepped down as chairman and chief executive officer of MF Global just days after the bankruptcy filing. In April 2013, the Bankruptcy Court approved MF Global Holdings' plan to liquidate its assets. Bloomberg News reported that the court-approved disclosure statement initially told creditors with $1.134 billion in unsecured claims against the parent holding company why they could expect a recovery of 13.4% to 39.1% from the plan. As a consequence of a settlement with JPMorgan, supplemental materials informed unsecured creditors their recovery was reduced to the range of 11.4% to 34.4%. Bank lenders will have the same recovery on their $1.174 billion claim against the holding company. As a consequence of the settlement, the predicted recovery became 18% to 41.5% for holders of $1.19 billion in unsecured claims against the finance subsidiary, one of the companies under the umbrella of the holding company trustee. Previously, the predicted recovery was 14.7% to 34% on bank lenders' claims against the finance subsidiary. MI PUEBLO: Can Hire Perkins Coie to Advise on Financing Matters --------------------------------------------------------------- Mi Pueblo San Jose, Inc., sought and obtained permission from the U.S. Bankruptcy Court for the Northern District of California to expand the scope of employment of Perkins Coie LLP as special counsel to include transactional representation in connection with the Debtor's financing transactions with potential investors and lenders, including but not limited to Victory Park Capital Advisors, LLC and Victory Park Management, LLC. The Debtor previously obtained bankruptcy court approval to employ Perkins Coie as special counsel to provide advice on intellectual property matters. As reported in the Troubled Company Reporter on Sept. 18, 2013, the firm's services included: a. provide advice and representation in various intellectual property and intellectual property litigation matters, including but not limited to THF Equities, LP and Bay Valley Foods, LLC v. Mi Pueblo San Jose, Inc., United States Patent and Trademark Office, Trademark Trial and Appeal Board Proceeding Nos. 91202185, 91202569, and 92054486; Mi Pueblo San Jose, Inc. v. THF Equities, LP and Bay Valley Foods, LLC, United States Patent and Trademark Office, Trademark Trial and Appeal Board Proceeding Nos. 92052561 and 92055015; and b. provide legal services, advice, representation and related services in connection with such other matters as the Debtor may from time to time request. Perkins Coie was to be employed on these terms: a. Approval of attorneys' fees and costs to be paid to Special Counsel by Mi Pueblo will be subject to one or more duly noticed fee applications to be approved by the Court. b. It is anticipated that these attorneys and paralegals will be primarily utilized by Special Counsel in rendering services to Mi Pueblo at the following hourly rates: Attorney Name Attorney Hourly Rate ------------- -------------------- Christopher Kao $710.00 Jeffrey A. Nelson $455.00 About Mi Pueblo San Jose Mi Pueblo San Jose, Inc., filed a Chapter 11 petition (Bankr. N.D. Calif. Case No. 13-53893) in San Jose, California, on July 22, 2013. An affiliate, Cha Cha Enterprises, LLC, sought Chapter 11 protection (Case No. 13-53894) on the same day. The cases are not jointly administered. In its amended schedules, Mi Pueblo disclosed $61,577,296 in assets and $68,735,285 in liabilities as of the Petition Date. Heinz Binder, Esq., at Binder & Malter, LLP, is the Debtor's general reorganization counsel. The Law Offices of Wm. Thomas Lewis, sometimes doing business as Robertson & Lewis, is the Debtor's special counsel. Avant Advisory Partners, LLC serves as its financial advisors. Bustamante & Gagliasso, P.C. serves as its special counsel. The U.S. Trustee appointed seven members to the Official Committee of Unsecured Creditors. Protiviti Inc. serves as financial advisor. Stutman, Treister & Glatt P.C. serves as counsel to the Committee. MMRGLOBAL INC: Unit Inks Settlement Agreement with Walgreens ------------------------------------------------------------ MMRGlobal, Inc., through its wholly owned subsidiary MyMedicalRecords, Inc., and Walgreen Co. have entered into a settlement and licensing agreement to resolve two patent infringement lawsuits brought by MMR. Pursuant to the terms of the Agreement, Walgreens purchased a Non-Exclusive License to the MMR family of patents. The settlement arises from litigation involving MMR's U.S. Patent No. 8,301,466 and U.S. Patent No. 8,498,883. MMR's patent portfolio also includes U.S. Patent Nos. 8,121,855; 8,117,045; 8,117,646; 8,301,466; 8,321,240; 8,352,287; 8,352,288; 8,498,883; 8,626,532 and 8,645,161 as well as numerous pending applications. Pursuant to the terms of the Agreement, Walgreens has also agreed to sell MMR's MyMedicalRecords Personal Health Record on drugstore.com. The remaining terms of the Agreement are confidential. About MMRGlobal Los Angeles, Calif.-based MMR Global, Inc. (OTC BB: MMRF) -- http://www.mmrglobal.com/-- through its wholly-owned operating subsidiary, MyMedicalRecords, Inc., provides secure and easy-to- use online Personal Health Records (PHRs) and electronic safe deposit box storage solutions, serving consumers, healthcare professionals, employers, insurance companies, financial institutions, and professional organizations and affinity groups. MMRGlobal incurred a net loss of $5.90 million in 2012, as compared with a net loss of $8.88 million in 2011. The Company's balance sheet at Sept. 30, 2013, showed $2.69 million in total assets, $9.80 million in total liabilities and a $7.11 million total stockholders' deficit. Rose, Snyder & Jacobs LLP, in Encino, California, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2012. The independent auditors noted that the Company has incurred significant operating losses and negative cash flows from operations during the years ended Dec. 31, 2012, and 2011, that raise substantial doubt about the Company's ability to continue as a going concern. MOBIVITY HOLDINGS: Amends Letter of Intent with Smart Receipt ------------------------------------------------------------- Mobivity Holdings Corp. entered into an amendment to its non- binding letter of intent dated Jan. 15, 2014, with Smart Receipt, Inc., to extend the Company's right of exclusive dealing with Smart Receipt under the letter of intent from Feb. 14, 2014, to Feb. 28, 2014. The terms of the letter of intent are otherwise unchanged. About Mobivity Holdings Mobivity Holdings Corp. was incorporated as Ares Ventures Corporation in Nevada in 2008. On Nov. 2, 2010, the Company acquired CommerceTel, Inc., which was wholly-owned by CommerceTel Canada Corporation, in a reverse merger. Pursuant to the Merger, all of the issued and outstanding shares of CommerceTel, Inc., common stock were converted, at an exchange ratio of 0.7268-for-1, into an aggregate of 10,000,000 shares of the Company's common stock, and CommerceTel, Inc., became a wholly owned subsidiary of the Company. In connection with the Merger, the Company changed its corporate name to CommerceTel Corporation on Oct. 5, 2010. In connection with the Company's acquisition of assets from Mobivity, LLC, the Company changed its corporate name to Mobivity Holdings Corp. and its operating company to Mobivity, Inc, on Aug. 23, 2012. Mobivity Holdings disclosed a net loss of $7.33 million in 2012, as compared with a net loss of $16.31 million in 2011. The Company's balance sheet at Sept. 30, 2013, showed $9.96 million in total assets, $1.51 million in total liabilities and $8.45 million in total stockholders' equity. M&K CPAS, PLLC, in Houston, Texas, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2012, citing recurring operating losses and negative cash flows from operations and dependence on additional financing to fund operations which raise substantial doubt about the Company's ability to continue as a going concern. Bankruptcy Warning "[A]ll of our assets are currently subject to a first priority lien in favor of the holders of our outstanding convertible notes payable in the current aggregate principal amount of $4,521,378. The notes are due on October 15, 2013, if we are unable to repay or refinance our obligations under those notes by October 15, 2013, the holders of the notes will have the right to foreclose on their security interests and seize our assets. To avoid such an event, we may be forced to seek bankruptcy protection, however a bankruptcy filing would, in all likelihood, materially adversely affect our ability to continue our current level of operations. In the event we are not able to refinance or repay the notes, but negotiate for a further extension of the maturity date of the notes, we may be required to pay significant extension fees in cash or shares of our equity securities or otherwise make other forms of concessions that may adversely impact the interests of our common stockholders," the Company said in its annual report for the year ended Dec. 31, 2012. MONTREAL MAINE: Wrongful-Death Lawyers Barred from Case ------------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that lawyers for the 47 people killed in the July railway disaster in Lac-Megantic, Quebec, were barred for the time being from participating in the bankruptcy of Montreal Maine & Atlantic Railway Ltd. According to the report, the railroad's Chapter 11 trustee, Robert J. Keach, filed papers in February to bar lawyers for the 47 victims from participating because they failed to file details about whom they represent and on what terms. U.S. Bankruptcy Judge Louis H. Kornreich held a hearing, agreed with the trustee and barred the lawyers from appearing until they file papers that comply with bankruptcy rules by explaining their retention agreements, the report related. On March 17, those lawyers filed papers with more details and asked Judge Kornreich to hold a hearing tomorrow and authorize them to continue representing their clients in the bankruptcy, the report further related. Assuming the lawyers are found in compliance with disclosure requirements, there's an April 8 hearing on the bankruptcy court's calendar to consider approval of disclosure materials explaining the ad hoc committee's plan, the report said. About Montreal Maine Montreal, Maine & Atlantic Railway Ltd., the railway company that operated the train that derailed and exploded in July 2013, killing 47 people and destroying part of Lac-Megantic, Quebec, sought bankruptcy protection in U.S. Bankruptcy Court in Bangor, Maine (Case No. 13-10670) on Aug. 7, 2013, with the aim of selling its business. Its Canadian counterpart, Montreal, Maine & Atlantic Canada Co., meanwhile, filed for protection from creditors in Superior Court of Quebec in Montreal. Robert J. Keach, Esq., at Bernstein, Shur, Sawyer, and Nelson, P.A., has been named as chapter 11 trustee. His firm serves as his chapter 11 bankruptcy counsel, led by Michael A. Fagone, Esq., and D. Sam Anderson, Esq. Development Specialists, Inc., serves as the Chapter 11 trustee's financial advisor. Gordian Group, LLC, serves as the Chapter 11 Trustee's investment banker. U.S. Bankruptcy Judge Louis H. Kornreich has been assigned to the U.S. case. The Maine law firm of Verrill Dana served as counsel to MM&A. It now serves as counsel to the Chapter 11 Trustee. Justice Martin Castonguay oversees the case in Canada. The Canadian Transportation Agency suspended the carrier's operating certificate after the accident, due to insufficient liability coverage. The town of Lac-Megantic, Quebec, has sought financial aid to restore the gutted community and a civil complaint alleges a failure to take steps to prevent a derailment. In the Canadian case, Andrew Adessky at Richter Consulting has been appointed CCAA monitor. The CCAA Monitor is represented by Sylvain Vauclair at Woods LLP. MM&A Canada is represented by Patrice Benoit, Esq., at Gowling LaFleur Henderson LLP. The U.S. Trustee appointed a four-member official committee of derailment victims. The Official Committee is represented by: Richard P. Olson, Esq., at Perkins Olson; and Luc A. Despins, Esq., at Paul Hastings LLP. There's also an unofficial committee of wrongful death claimants consisting of representatives of the estates of the 46 victims. This group is represented by George W. Kurr, Jr., Esq., at Gross, Minsky & Mogul, P.A.; Daniel C. Cohn, Esq., at Murtha Cullina LLP; Peter J. Flowers, Esq., at Meyers & Flowers, LLC; Jason C. Webster, Esq., at The Webster Law Firm; and Mitchell A. Toups, Esq., at Weller, Green Toups & Terrell LLP. After the U.S. Trustee formed the Official Committee, the ad hoc committee filed papers asking the U.S. Court to have the official committee disbanded. The ad hoc group said it represents 46 victims of the disaster. On Jan. 23, 2014, the Debtors won authorization to sell substantially all of their assets to Railroad Acquisition Holdings LLC, an affiliate of New York-based Fortress Investment Group, for $15.7 million. The Bankruptcy Courts in the U.S. and Canada approved the sale. The Fortress unit is represented by Terence M. Hynes, Esq., and Jeffrey C. Steen, Esq., at Sidley Austin LLP. On Jan. 29, 2014, an ad hoc group of wrongful-death claimants submitted a plan, which would give 75 percent of the $25 million in available insurance to the families of those who died after an unattended train derailed in Lac-Megantic, Quebec, in July. The other 25 percent would be earmarked for claimants seeking compensation for property that was damaged when much of the town burned. Former U.S. Senator George Mitchell, a Democrat who represented Maine in the U.S. Senate from 1980 to 1995 and who is now chairman emeritus of law firm DLA Piper LLP, would administer the plan and lead the effort to wrap up MM&A's Chapter 11 bankruptcy. MORGANS HOTEL: Ronald Burkle Stake at 27.2% as of Feb. 28 --------------------------------------------------------- In an amended Schedule 13D filed with the U.S. Securities and Exchange Commission, Ronald W. Burkle and his affiliates disclosed that as of Feb. 28, 2014, they beneficially owned 12,522,367 shares of common stock of Morgans Hotel Group Co. representing 27.2 percent of the shares outstanding. A copy of the regulatory filing is available at http://is.gd/5ffUGV About Morgans Hotel Group Based in New York, Morgans Hotel Group Co. (Nasdaq: MHGC) -- http://www.morganshotelgroup.com/-- is widely credited as the creator of the first "boutique" hotel and a continuing leader of the hotel industry's boutique sector. Morgans Hotel Group operates and owns, or has an ownership interest in, Morgans, Royalton and Hudson in New York, Delano and Shore Club in South Beach, Mondrian in Los Angeles and South Beach, Clift in San Francisco, Ames in Boston, and Sanderson and St Martins Lane in London. Morgans Hotel Group and an equity partner also own the Hard Rock Hotel & Casino in Las Vegas and related assets. Morgans Hotel Group also manages hotels in Isla Verde, Puerto Rico and Playa del Carmen, Mexico. Morgans Hotel Group has other property transactions in various stages of completion, including projects in SoHo, New York and Palm Springs, California. The Company incurred a net loss attributable to common stockholders of $66.81 million in 2012, a net loss attributable to common stockholders of $95.34 million in 2011, and a net loss attributable to common stockholders of $89.96 million in 2010. The Company's balance sheet at Sept. 30, 2013, showed $572.83 million in total assets, $745.70 million in total liabilities, $6.31 million in redeemable noncontrolling interest and $179.18 million total deficit. MT. GOX: Allows Customers to View Account Balances -------------------------------------------------- Reuters reported that Mt. Gox, a leading bitcoin exchange that late last month filed for bankruptcy protection, updated its website to allow customers to log in and verify their wallet, or account, balance. According to the report, the website, which went blank weeks ago, had previously posted occasional updates on Mt. Gox's civil rehabilitation process -- a legal procedure that may allow Mt. Gox to rebuild and pay back some of its creditors -- as well as a warning that some spam or phishing emails purporting to be from the exchange were in circulation. A spokesperson reached via a helpline for Mt. Gox creditors confirmed that Mt. Gox set up the log-in, based on the last available data from the exchange's servers before they shut down, the report related. Leaked information from various hacking attacks on Mt. Gox servers and CEO Mark Karpeles' personal blog and Reddit account have been released in recent weeks, and one file purporting to be the company's internal database contained malware that could steal bitcoins once downloaded, the report further related. About Mt. Gox Bitcoin exchange MtGox Co., Ltd., filed a petition under Chapter 15 of the U.S. Bankruptcy Code on March 9, 2014, days after the company sought bankruptcy protection in Japan. The bankruptcy in Japan came after the bitcoin exchange lost 850,000 bitcoins valued at about $475 million "disappeared." The Japanese bitcoin exchange that halted trading in February 2014. It filed for bankruptcy protection in the U.S. to prevent customers from targeting the cash it holds in U.S. bank accounts. The Chapter 15 case is In re MtGox Co., Ltd., Case No. 14-31229 (Bankr. N.D. Tex.). The Chapter 15 Petitioner is Robert Marie Mark Karpeles, the company's chief executive officer. Mr. Karpeles is represented by John E. Mitchell, Esq., and David William Parham, Esq., at BAKER & MCCKENZIE LLP, in Dallas, Texas. The company said it has estimated assets of $10 million to $50 million and debts of $50 million to $100 million. NAVISTAR INTERNATIONAL: BNY Mellon No Longer Owns Pref. Shares -------------------------------------------------------------- In an amended Schedule 13G filed with the U.S. Securities and Exchange Commission, The Bank of New York Mellon Corporation and BNY Mellon, National Association, disclosed that as of Feb. 28, 2014, they ceased to be the beneficial owner shares of preferred stock of Navistar International Corporation. The reporting persons previously disclosed beneficial ownership of 45,000 preferred shares at Dec. 31, 2013. A copy of the regulatory filing is available for free at http://is.gd/mkzn1m About Navistar International Navistar International Corporation (NYSE: NAV) -- http://www.Navistar.com/-- is a holding company whose subsidiaries and affiliates subsidiaries produce International(R) brand commercial and military trucks, MaxxForce(R) brand diesel engines, IC Bus(TM) brand school and commercial buses, Monaco RV brands of recreational vehicles, and Workhorse(R) brand chassis for motor homes and step vans. It also is a private-label designer and manufacturer of diesel engines for the pickup truck, van and SUV markets. The Company also provides truck and diesel engine parts and service. Another affiliate offers financing services. Navistar International reported a net loss attributable to the Company of $898 million for the year ended Oct. 31, 2013, a net loss attributable to the Company of $3.01 billion for the year ended Oct. 31, 2012. The Company's balance sheet at Oct. 31, 2013, showed $8.31 billion in total assets, $11.91 billion in total liabilities and a $3.60 billion total stockholders' deficit. * * * In the Oct. 9, 2013, edition of the TCR, Moody's Investors Service affirmed the ratings of Navistar International Corporation, including the B3 Corporate Family Rating (CFR). The ratings reflect Moody's expectation that Navistar's successful incorporation of Cummins engines throughout its product line up will enable the company to regain lost market share, and that progress in addressing component failures in 2010 vintage-engines will significantly reduce warranty expenses. As reported by the TCR on Oct. 9, 2013, Standard & Poor's Ratings Services lowered its long-term corporate credit rating on Illinois-based truckmaker Navistar International Corp. (NAV) to 'CCC+' from 'B-'. "The rating downgrades reflect our increased skepticism regarding NAV's prospects for achieving the market shares it needs for a successful business turnaround," said credit analyst Sol Samson. As reported by the TCR on Jan. 24, 2013, Fitch Ratings has affirmed the Issuer Default Ratings (IDR) for Navistar International Corporation and Navistar Financial Corporation at 'CCC' and removed the Negative Outlook on the ratings. The removal reflects Fitch's view that immediate concerns about liquidity have lessened, although liquidity remains an important rating consideration as NAV implements its selective catalytic reduction (SCR) engine strategy. Other rating concerns are already incorporated in the 'CCC' rating. NELSON CHATELAIN: Judgment Against Huntsville Golf Affirmed ----------------------------------------------------------- HUNTSVILLE GOLF DEVELOPMENT, INC., Appellant, v. WHITNEY BANK, Appellee, Case No. 5:13-CV-671-VEH (N.D. Ala.), is an appeal from an adverse final judgment entered by the United States Bankruptcy Court for the Northern District of Alabama. Huntsville Golf has filed a brief outlining its arguments for reversal. Whitney Bank and Stuart Maples, Trustee of the Bankruptcy Estate of Nelson and Charlene Chatelain, responded. The Chatelains are debtors in a Chapter 11 case filed May 20, 1992 with the U.S. Bankruptcy Court for the Northern District of Alabama. That case was styled in In re Nelson J. Chatelain and Charlene L. Chatelain, Case No. 92-81161. The Chatelains are the sole shareholders of Huntsville Golf. Before the Chatelains filed their Chapter 11 petition, Huntsville Golf filed an arbitration demand against Brindley Construction Company, Inc. Huntsville Golf asserted various claims against Brindley arising from a construction contract formed between the two parties on Dec. 18, 1989. On Aug. 16, 1992, Huntsville Golf secured an arbitration award in its favor against Brindley in the amount of $376,316.75. The U.S. District Court for the Northern District of Alabama confirmed the arbitration award and entered a judgment finalizing it on Dec. 24, 1992. During the course of the Chatelains' bankruptcy case, Whitney timely filed a proof of claim, asserting an unsecured claim in the amount of $1,144,263.06 and a secured claim in the amount of $1,876,062.29. On Nov. 23, 1993, the bankruptcy court issued an Order confirming the Chatelains' Second Amended Plan of Reorganization. The Confirmation Order provides that: "Whitney National Bank raised the issued [sic] that the plan does not reflect that one of the debtor's corporations, Huntsville Golf Company, of which they are the sole shareholders, has a judgment against Brindley Construction Company in the approximate amount of $350,000. It should be noted that the debtor, Nelson Chatelain, has an account receivable against this corporation in the approximate amount of $300,000. The testimony given at the hearing indicated that this judgment cannot be collected because Brindley Construction Company does not have any funds. It is the opinion of this Court that the debtors should attempt to collect this judgment, and that any funds which are collected shall be subject to the jurisdiction of this Court and made available for distribution to unsecured creditors." The Order concluded with the following statement: " It is therefore ORDERED, ADJUDGED AND DECREED that the debtors' Second Amended Plan of Reorganization be and hereby is confirmed conditioned upon the debtors pursuing the collection of the judgment against Brindley Construction Company and providing for the payment of the debt owed to National Union if determined to be nondischargeable." On December 29, 1993, the bankruptcy court closed the Chatelains' case and entered a final decree. Huntsville Golf continued its efforts to enforce and collect its judgment against Brindley. To this end, the corporation instituted a proceeding against Brindley in the U.S. District Court for the Middle District of Tennessee. Huntsville Golf alleged, among other counts, claims seeking to pierce the corporate veil with respect to Brindley; Brindley Construction, LLC (f/k/a The Brindley Company, LLC); Brindley Construction Group, LLC; The Brindley Company (f/k/a Brindley Development Corporation); Brindley & Associates, Inc.; Brindley Development Company, LLC; Brindley Holdings, LP; Brindley Homes Corporation; The Brindley Company, LP; the Estate of Robert Brindley, Sr.; and Ronald Brindley. On Nov. 28, 2011, Huntsville Golf and the Brindley Group entered into a Mutual Settlement Agreement and Release. Under this agreement, the Brindley Group agreed to pay Huntsville Golf the amount of $985,000. A portion of this payment covered the legal fees and expenses Huntsville Golf incurred in enforcing the arbitration judgment. After payment of such fees and expenses, Huntsville Golf maintained in its possession roughly $510,000 of the settlement payment. On Dec. 2, 2011, Whitney moved to reopen the Chatelains' case. On Jan. 11, 2012, the bankruptcy court entered an order re-opening the case. Under this order, the court instructed Huntsville Golf to escrow $510,000 into its attorney's trust account subject to the court's further orders. On Feb. 20, 2013, the court granted Whitney's "Motion for Payment of Claims and Appointing a Disbursing Agent." The court sua sponte appointed a Chapter 11 Trustee to determine the unsecured creditors' claims. It also ordered Huntsville Golf's counsel to transfer the escrow funds to this Trustee. On Feb. 25, 2013, the bankruptcy court denied Huntsville Golf's Motion for Reconsideration. On March 29, 2013, Huntsville Golf petitioned the bankruptcy court for a stay pending appeal. On April 1, 2013, the court denied Huntsville Golf's request. Huntsville Golf filed a Notice of Appeal with the District Court on April 11, 2013. On June 7, 2013, Huntsville Golf filed a Motion for Stay Pending Appeal. The court denied this motion on Sept. 6, 2013. In a March 19 Memorandum Opinion available at http://is.gd/295RfR from Leagle.com, District Judge Virginia Emerson Hopkins finds that the Confirmation Order was res judicata and that it precludes the collateral attacks Huntsville Golf attempts to make upon it in the present appeal. Because the corporation could have introduced these objections at the time of the original judgment, it may not make them now before the District court. Huntsville Golf also tries to undermine Whitney's efforts to complete administration of the Chatelain bankruptcy estate on other grounds. These arguments fail on their merits. Accordingly, the District Court affirms the bankruptcy court's opinion. Huntsville Golf Development, Inc., is represented by Kevin D Heard, Esq., at HEARD ARY LLC. Whitney Bank is represented by Kevin C Gray, Esq., at MAYNARD COOPER & GALE PC. Stuart M Maples, Trustee, is represented by Stuart M Maples, Esq., at MAPLES & RAY PC. NEW LEAF BRANDS: H J & Assoc. Replaces EisnerAmper as Accountants ----------------------------------------------------------------- New Leaf Brands, Inc., terminated its relationship with EisnerAmper LLP, as the Company's independent registered public accounting firm on Feb. 18, 2014. The dismissal was not a result of any disagreement with the accounting firm. EisnerAmper LLP advised the Company's Audit Committee that during its performance of audit procedures for 2011 and 2010, EisnerAmper LLP had identified material weaknesses as defined in Public Company Accounting Oversight Board Standards No. 5 in the Company's internal control over financial reporting. On Jan. 17, 2014, the Company engaged H J & Associates, LLC, as its independent registered public accounting firm. During the Company's two most recent fiscal years and the subsequent interim period prior to retaining H J & Associates, LLC: (1) neither the Company nor anyone on its behalf consulted H J & Associates, LLC, regarding (a) either the application of accounting principles to a specified transaction, either completed or proposed, or the type of audit opinion that might be rendered on the Company's financial statements or (b) any matter that was the subject of a disagreement or a reportable event as set forth in Item 304(a)(1)(iv) and (v), respectively, of Regulation S-K, and (2) H J & Associates, LLC, did not provide the Company with a written report or oral advice that they concluded was an important factor considered by the Company in reaching a decision as to accounting, auditing or financial reporting issue. In a letter dated Feb. 18, 2014, from EisnerAmper LLP to the Securities and Exchange Commission, the accouting firm stated that: "We have read Item 4.01 of Form 8-K dated February 18, 2014 of New Leaf Brands, Inc. and agree with the statements concerning our firm contained therein. We have no basis to agree or disagree with other statements of the registrant contained therein," EisnerAmper LLP said in a letter. About New Leaf Old Tappan, N.J.-based New Leaf Brands, Inc., is a diversified beverage holding company acquiring brands, distributors and manufacturers within the beverage industry. EisnerAmper LLP, in New York City, expressed substantial doubt about New Leaf's ability to continue as a going concern following the 2011 financial results. The independent auditors noted that the Company has suffered recurring losses from operations, has a working capital deficiency, was not in compliance with certain financial covenants related to debt agreements, and has a significant amount of debt maturing in 2012. The Company reported a net loss of $6.68 million on $2.27 million of net sales for 2011, compared with a net loss of $9.13 million on $4.26 million of net sales for 2010. As of Sept. 30, 2012, the Company had $761,958 in total assets, $4.06 million in total liabilities and a $3.30 million in total stockholders' deficit. NEWLEAD HOLDINGS: Perian Salviola Stake at 18.3% as of Feb. 28 -------------------------------------------------------------- In a Schedule 13G filed with the U.S. Securities and Exchange Commission, Perian Salviola beneficial ownership of 8,853,038 shares of common stock of Newlead Holdings, Ltd., representing 18.32 percent based on 48,317,536 shares of the Company's Common Stock issued and outstanding as disclosed by the Company's in a Form 6-K dated Feb. 28, 2014. A copy of the regulatory filing is available at http://is.gd/TRYDI1 About NewLead Holdings Based in Athina, Greece, NewLead Holdings Ltd. -- http://www.newleadholdings.com/-- is an international, vertically integrated shipping company that owns and manages product tankers and dry bulk vessels. NewLead currently controls 22 vessels, including six double-hull product tankers and 16 dry bulk vessels of which two are newbuildings. NewLead's common shares are traded under the symbol "NEWL" on the NASDAQ Global Select Market. Newlead Holdings incurred a net loss of $403.92 million on $8.92 million of operating revenues for the year ended Dec. 31, 2012, as compared with a net loss of $290.39 million on $12.22 million of operating revenues for the year ended Dec. 31, 2011. The Company incurred a net loss of $86.34 million on $17.43 million of operating revenues in 2010. As of June 30, 2013, the Company had $84.27 million in total assets, $166.18 million in total liabilities and a $81.91 million total shareholders' deficit. Going Concern Doubt PricewaterhouseCoopers S.A., in Athens, Greece, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2012. The independent auditors noted that the Company has incurred a net loss, has negative cash flows from operations, negative working capital, an accumulated deficit and has defaulted under its credit facility agreements resulting in all of its debt being reclassified to current liabilities, all of which raise substantial doubt about its ability to continue as a going concern. NEWLEAD HOLDINGS: Mantangi Irrevocable Stake at 9.2% as of Dec. 31 ------------------------------------------------------------------ In a Schedule 13G filed with the U.S. Securities and Exchange Commission, Mantangi Irrevocable Trust disclosed that as of Dec. 31, 2013, it beneficially owned 4,426,519 shares of common stock of Newlead Holdings, Ltd., representing 9.16 percent of the shares outstanding. A copy of the regulatory filing is available for free at http://is.gd/Ue2JoJ About NewLead Holdings Based in Athina, Greece, NewLead Holdings Ltd. -- http://www.newleadholdings.com/-- is an international, vertically integrated shipping company that owns and manages product tankers and dry bulk vessels. NewLead currently controls 22 vessels, including six double-hull product tankers and 16 dry bulk vessels of which two are newbuildings. NewLead's common shares are traded under the symbol "NEWL" on the NASDAQ Global Select Market. Newlead Holdings incurred a net loss of $403.92 million on $8.92 million of operating revenues for the year ended Dec. 31, 2012, as compared with a net loss of $290.39 million on $12.22 million of operating revenues for the year ended Dec. 31, 2011. The Company incurred a net loss of $86.34 million on $17.43 million of operating revenues in 2010. As of June 30, 2013, the Company had $84.27 million in total assets, $166.18 million in total liabilities and a $81.91 million total shareholders' deficit. Going Concern Doubt PricewaterhouseCoopers S.A., in Athens, Greece, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2012. The independent auditors noted that the Company has incurred a net loss, has negative cash flows from operations, negative working capital, an accumulated deficit and has defaulted under its credit facility agreements resulting in all of its debt being reclassified to current liabilities, all of which raise substantial doubt about its ability to continue as a going concern. NORTHERN MARIANA CPA: Fitch Keeps $13MM Airport Bonds' B- Rating ---------------------------------------------------------------- Fitch Ratings has affirmed the 'B-' rating on approximately $13 million of outstanding Commonwealth Ports Authority (CPA), Commonwealth of the Northern Mariana Islands (CNMI), senior series 1998A airport revenue bonds. The Rating Outlook remains Positive. Key Rating Drivers: -- Highly Volatile Enplanement Base: The airport system is an essential enterprise, serving as the gateway to and within the Mariana Islands. The enplanement base of 545,504 passengers is relatively small taking into account the overall population base and the island's more limited, weaker economy. Traffic performance is potentially vulnerable to underlying economic stresses given the significant component of traffic tied to the tourism industry. Revenue Risk-Resilience: Weaker. -- Limited Cost Recovery: Rate setting practices with airlines are not clearly established and have been observed to be more reactive, based on financial pressures, than proactive. In Fitch's view, the airports' limited pricing power could constrain financial flexibility under an adverse operating environment. Recent approval by the Federal Aviation Administration (FAA) to allow the airport to utilize 100% of passenger facility charge (PFC) collections for debt service provides enhanced cushion to manage revenue levels to support financial obligations while keeping airline costs stable. Revenue Risk-Price: Weaker. -- Moderate Capital Plan: The authority's capital improvement plan is modest at $44 million through fiscal 2015 and predominantly funded through FAA grants with no future anticipated debt issuances. To the extent that a significant portion of PFC revenue is needed for debt service, it could hamper the airport's ability to provide required matching funds and thus limit grant receipts. Infrastructure Development: Mid-range. -- Conservative Capital Structure: The authority maintains 100% fixed-rate, fully amortizing debt. Annual debt service payments are essentially level and final maturity on the bonds is in 2028. Debt Structure: Stronger. -- Improving yet Volatile Financial Metrics: CPA generated a robust coverage ratio of 4.2 times (x) (2.8x without 100% PFCs as gross revenues) for fiscal 2013 (unaudited figures). Still, coverage levels have greatly fluctuated over time and failed to meet the financial rate covenant test (1.25x) as recently as fiscal 2008. Partially mitigating this volatility is the very low leverage of 0.1x net debt-to-cash flow available for debt service (CFADS), supported in part by treating all PFCs collected as pledged revenues and improving balance sheet liquidity. Days Cash on Hand (DCOH) has grown significantly over the past four years to 352 days in fiscal 2013. Rating Sensitivities: -- Continued improvements in the underlying service area economy and the airports' ability to maintain or grow its current traffic base; -- Sustained favorable trends in balance sheet liquidity and strong financial ratios over the next year would strengthen CPA's credit quality. -- Material declines in enplanement volume or in coverage, resulting from increased operating expenses and/or the CPA Board's failure to sufficiently apply the full collection of PFCs as gross revenues, could pressure the current rating. -- Identified longer-term capital projects that would rely on debt issuances for funding could lead to rating pressure. SECURITY: The series 1998A bonds are secured by a pledge of gross airport revenues generated by the operations of the airport, including Passenger Facility Charges eligible for payment of debt service. Fitch notes that CPA Board Resolution No. 2011-01 now designates all PFC Revenues as gross airport revenues. CREDIT UPDATE: The CPA airports are heavily reliant on tourism and leisure travelers, creating an elevated degree of vulnerability to economic recessions both within its narrow local market as well as to the larger, neighboring Asian markets. Enplanements tend to show elevated fluctuations over time. In fiscal 2013, enplanements decreased approximately 5%, mainly due to reduced interisland enplanements at Tinian and Rota Airports. Saipan airport, the authority's strongest and busiest airport retained demand from international passengers and increased utilization. Collectively, Delta Airlines and Asiana Airlines maintain their dominance with a combined market share of approximately 58% of total traffic. However, Delta's market share fell an estimated 7% in 2013, while Asiana's increased by nearly 8%. Overall, service remains essential to this island economy and management indicated that multiple airlines are looking to begin or increase service levels. The airports set rates under a residual methodology with its carriers. However, the CPA has shown a history of reluctance to consistently pass through the full cost requirements given the fragile economy and nature of the airline industry, negatively impacting financial flexibility and resulting in past covenant violations. Management's actions in fiscal 2009 to increase airline rates have resulted in improved net revenues with coverage increasing well above the 1.25x requirement. Unaudited fiscal 2013 coverage is expected to be close to 4.17x following 3.33x coverage in the prior year, based on pledged revenues inclusive of all PFC collections. Providing somewhat of a consistent revenue stream to help service debt, non-airline revenues have been relatively stable over time and management continues to try to expand those sources. Cost per enplanement (CPE) is estimated at around $16.10 for fiscal 2013 and is expected to remain in that range barring any wide swings in enplanements or changes to airline rates. Fitch notes that this level is similar to the new baseline CPE established when airline rates went up in fiscal 2009. CPA's overall leverage is relatively high given the operational profile of the airports; however its net debt-to-CFADS is very low at 0.1x taking into account its growing liquidity (352 days cash on hand), reserves, and ability to use all of its PFCs as cash flow. As a result of the airport's improved operations, conservative capital structure, and flat debt service profile, Fitch projects coverage to remain at or above covenant through a five-year forecast period, even when only the eligible portion of PFCs for debt service are applied. CPA's capital improvement plan through 2015 is modest at $44 million and 95% of the funding comes from FAA grants. The largest project is a $17 million Regional ARFF Training Facility that should be a revenue-generating project for the airports. Other projects include: rehabilitating the 30 year old runway, installation of new generators for the terminals, Tower and Airport Fire Station, and various renovations to the international and commuter terminal. These are in addition to several future anticipated projects. Management indicated that no future debt issuances are currently planned although the authority does not detail a longer range capital improvement plan so some uncertainty remains over facility needs and funding. NORTHERN MARIANA CPA: Fitch Keeps $30MM Seaport Bonds' BB- Rating ----------------------------------------------------------------- Fitch Ratings has affirmed the 'BB-' rating on approximately $30.4 million of outstanding Commonwealth Ports Authority (CPA), Commonwealth of the Northern Mariana Islands (CNMI), senior series 1998A & 2005A seaport revenue bonds. The Rating Outlook is Stable. Key Rating Drivers: -- Concentrated but Vital Cargo Base: The seaports remain essential for the import of goods to an island economy; however, there is potential for stagnant operational trends due to CNMI's exposure to macroeconomic factors and its elevated dependence on a limited tourist base. Volume stability is expected given that food and fuel related cargos account for approximately 70% of import dependent revenue tonnage. Revenue Risk: Volume - Weaker -- Limited Pricing Power: CNMI's narrow economy and the overall recession limit management's economic flexibility to raise rates on seaport system tenants and users. Following the last increase in 2009, the authority's focus has instead been on effective containment of operating expenses. Revenue Risk: Price - Weaker -- Modest Capital Plan: The authority's capital improvement plan is manageable in scope and is predominantly grant funded. The remaining dollars are expected to come from internally generated funds with no future debt issuances currently anticipated. Infrastructure and development - Midrange -- Conservative Capital Structure: The authority maintains 100% fixed-rate, fully amortizing debt. Debt Structure - Stronger -- Moderate Leverage and Strong Liquidity: CPA currently maintains favorable leverage and liquidity metrics offset by modest coverage ratios. Leverage of 3.5x net debt-to-cash flow available for debt service (CFADS), and balance sheet cash and reserves available for operating expenses equating to over 2,000 days cash on hand (DCOH) provides the CPA with some degree of flexibility to meet financial commitments in weak performing periods. Further, coverage levels appear to have stabilized in the 1.3x-1.4x range with estimated fiscal 2013 coverage of 1.33x. Rating sensitivities: -- Continued changes in the underlying service area economy and the seaport's ability to maintain base cargo levels at or near current levels; -- Depressed debt service coverage levels resulting from declining operating revenues despite growth in revenue tonnage; -- A shift in the seaport's short-term liquidity and financial flexibility resulting from changes in operating expense management or pricing power. Security: The seaport bonds are secured solely by gross seaport revenues and certain accounts established pursuant to the bond indenture. Credit Update: CNMI's limited economy is subject to macroeconomic factors and a diminished tourist base. Its ports' revenue tonnage is now nearly 100% from imports and concentrated in two main commodities (fuel and food), following the loss of the garment industry. Collectively, fuel and food represent nearly 70% of all revenue tonnage, possibly indicating that a shift in the operational profile may be nearing completion and demonstrating the essentiality of the ports to the islands' survival. The islands rely on the ports for all of their necessities, which should make demand relatively stable given that imports should never decline to a critical point. Due to a decrease in imports, total tonnage fell off by 13.1% to 355,572 metric tons. This figure is comparable to tonnage in 2011, which was 378,800 metric tons, and Fitch believes this will be near to the new baseline for CNMI. Fiscal 2013 unaudited operating revenues were down 2.9% as a result of lower seaport fees and concession-based receipts. Operating expenses decreased by 11.6% due to a decrease in contractual services and employee benefits. Together, this resulted in estimated 2013 debt service coverage of 1.33x, which was flat compared to last year's 1.32x coverage. Debt service coverage has stayed largely stable in the 1.3x - 1.4x range since fiscal 2009's rate increase. In the past, management was reluctant to raise rates, which led to rate covenant violations in 2007 and 2008. Following that period, actions on rates appear to have reversed the coverage deficit when combined with the austerity measures on the expense side. Fitch notes, however, that should coverage levels decline as a result of diminished operating revenues, especially in times when volume levels are stable or improving, negative rating action could be warranted. Following fiscal 2013, Fitch believes that cash flows should continue to be sufficient to cover debt service through its five- year forecast period and takes comfort in the CPA's strong liquidity and fixed-rate, flat debt service profile. CPA maintains fund balances of over $13 million related to the bond indenture and has increased DCOH (including reserves available for operating expenses) to 2,264 days. This liquidity provides some degree of financial flexibility and translates to a moderate net debt-to-CFADS of 3.5x. Further, management does not anticipate any future debt issuances at this time. The authority's capital improvement plan is modest and primarily grant funded with a 25% match required from the CPA. Current grants include a $950,000 grant from the Department of Homeland Security to improve security at the ports and another from CNMI/DOI for repair work. Fitch notes that a more forward-looking capital plan would be helpful in monitoring new projects and ensuring that any necessary maintenance and/or projects are not being deferred. NUVILEX INC: Fully Pays Licensing Obligations to Austrianova ------------------------------------------------------------ Effective June 25, 2013, Nuvilex Inc. entered into a Licensing Agreement with Austrianova Singapore Pte. Ltd. pursuant to which the Company acquired the exclusive, worldwide license to use: (i) the cellulose-based live-cell encapsulation technology of Austrianova, known as "Cell-in-a-Box," for the treatment of diabetes; and (ii) the "Cell-In-A-Box" trademark of Austrianova. Pursuant to the Licensing Agreement, the Company was required to pay $1 million to Austrianova Singapore on Oct. 31, 2013. That payment was made on Oct. 30, 2013. A second payment of $1 million is required to be paid to Austrianova by April 30, 2014, in order to retain Nuvilex's exclusive worldwide license to use the "Cell-in-a-Box" technology for the development of treatments for diabetes. On Feb. 25, 2014, the Company made the second required payment to Austrianova, thereby fulfilling all financial obligations required to be met by the Company under the Licensing Agreement. About Nuvilex Inc. Silver Spring, Md.-based Nuvilex, Inc.'s current strategy is to focus on developing and marketing products designed to improve the health and well-being of those who use them. Nuvilex incurred a net loss of $1.59 million on $12,160 of product sales for the 12 months ended April 30, 2013, as compared with a net loss of $1.89 million on $66,558 of total revenue during the prior year. The Company's balance sheet at Oct. 31, 2013, showed $4.59 million in total assets, $990,967 in total liabilities and $3.60 million in total stockholders' equity. Robison, Hill & Co., in Salt Lake City, Utah, issued a "going concern" qualification on the consolidated financial statements for the year ended April 30, 2013. The independent auditors noted that the Company has suffered recurring losses from operations which raises substantial doubt about its ability to continue as a going concern. ORCKIT COMMUNICATIONS: Court Denies Request to Stay Proceedings --------------------------------------------------------------- The District Court of Tel Aviv declined to grant the petition filed with the Court on Feb. 18, 2014, by the trustees of the Company's Series A and Series B note holders for a stay of proceedings and the appointment of a trustee over the Company. Instead, the Court directed the parties to finalize their negotiations of the terms of an arrangement under Section 350 of the Israeli Companies Law with the assistance of a mediator. The Court also issued an order prohibiting the filing of any claims against the Company until further notice. Another Court hearing was scheduled for March 5, 2014. About Orckit Tel-Aviv, Israel-based Orckit Communications Ltd. (TASE: ORCT) engages in the design, development, manufacture and marketing of advanced telecom equipment to telecommunication service providers in metropolitan areas. The Company's products are transport telecommunication equipment targeting high capacity packetized metropolitan networks. Orckit disclosed a net loss of $6.46 million on $11.19 million of revenues for the year ended Dec. 31, 2012, as compared with a net loss of $17.38 million on $15.58 million of revenues for the year ended Dec. 31, 2011. The Company's balance sheet at Sept. 30, 2013, showed $12.44 million in total assets, $24.03 million in total liabilities and a $11.59 million total capital deficiency. Kesselman & Kesselman, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2012. The independent auditors noted that the Company has a capital deficiency, recurring losses, negative cash flows from operating activities and has significant future commitments to repay its convertible subordinated notes. These facts raise substantial doubt as to the Company's ability to continue as a going concern. PACIFIC GOLD: Amends Option and Asset Sale Pact with Pilot Metals ----------------------------------------------------------------- Pacific Gold Corp., completed an amendment to its Option and Asset Sale Agreement with Pilot Metals Inc. As amended, instead of $850,000 to be paid on March 31, 2014, and $1,000,000 on the commencement of commercial mining, the Company received $200,000 on Feb. 18, 2014, and will receive $400,000 on March 31st and $1,500,000 on the commencement of commercial mining. Pilot Metals has an option that is good until Sept. 30, 2014, to purchase $500,000 of the final $1,500,000 payment for $250,000. All payments are subject to a 15 percent royalty to be paid to Platoro West. All of the immediate proceeds receivable in February and March from the sale have been used or will be used for the payment of outstanding vendor obligations, debt reduction on obligations that are or will be due, and, to the extent of any remaining amounts, working capital of the Company. The Company does not expect that there will be, if at all, any significant amount of funds available for working capital at this time. The Company said it will require additional capital to restart operations at the Black Rock Canyon Mine and to meet the objectives of its business plan. There are issued and outstanding 395,366,031 shares of common stock as of Feb. 20, 2013. About Pacific Gold Las Vegas, Nev.-based Pacific Gold Corp. is engaged in the identification, acquisition, and development of prospects believed to have gold mineralization. Pacific Gold through its subsidiaries currently owns claims, property and leases in Nevada and Colorado. Pacific Gold disclosed a net loss of $16.62 million in 2012, as compared with a net loss of $1.38 million in 2011. The Company's balance sheet at Sept. 30, 2013, showed $2.02 million in total assets, $4.07 million in total liabilities, and stockholders' deficit of $2.05 million. Silberstein Ungar, PLLC, in Bingham Farms, Michigan, 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 losses from operations, has negative working capital and is in need of additional capital to grow its operations so that it can become profitable. These factors raise substantial doubt about the Company's ability to continue as a going concern. PAUL CAPITAL: Is Winding Down After Sale Collapses -------------------------------------------------- Hillary Canada, Alec Macfarlane and Michael Wursthorn, writing for The Wall Street Journal, reported that Paul Capital is winding down its portfolio and shuttering all but one of its offices following the collapse of a planned sale to Hamilton Lane, said several people familiar with the sales process. The firm, which buys stakes in private-equity funds, told investors it will no longer make any additional investments related to its latest fund, Paul Capital Partners X LP, the Journal said, citing these people. As much as $300 million of open commitments will be returned to investors, one of the people said. Paul Capital will instead wind down its remaining portfolio, including capital already invested through Paul Capital Partners X, and close its offices with the exception of its headquarters in San Francisco, the report related, further citing these people. Since its founding in 1991, the firm has opened offices in New York, London, Paris, Hong Kong and S?o Paulo. The collapse of a potential sale underscores the difficulty that surrounds consolidation in the private-equity industry, where complicated economics and legacy holdings can make for complex negotiations, the report further related. Some deals have managed to make it past the finish line, the report said. Last year, StepStone Group agreed to buy Greenpark Capital, which had struggled to find its footing while out raising a secondaries fund. Meanwhile, Credit Suisse Group was able to unload two of its private-equity businesses in 2013, selling its Customized Fund Investment Group to Chicago-based Grosvenor Capital Management and shedding its secondary business, CS Strategic Partners, in a sale to Blackstone Group. PLUG POWER: Offering $22.4 Million Common Shares ------------------------------------------------ Plug Power Inc. has priced an underwritten registered offering of 3,902,440 shares of its common stock. The shares will be sold at a price to the public of $5.74 per share for gross proceeds of approximately $22.4 million. The shares were placed with a single institutional investor. Cowen and Company, LLC, is acting as the sole underwriter for the offering. Net proceeds, after underwriting discounts and commissions and other estimated fees and expenses payable by Plug Power, will be approximately $21.5 million. Plug Power intends to use the net proceeds of the offering for working capital and other general corporate purposes including, capital expenditures. About Plug Power Plug Power Inc. is a provider of alternative energy technology focused on the design, development, commercialization and manufacture of fuel cell systems for the industrial off-road (forklift or material handling) market. KPMG LLP, in Albany, New York, expressed substantial doubt about Plug Power's ability to continue as a going concern, following their audit of the Company's financial statements for the year ended Dec. 31, 2012, citing the Company's recurring losses from operations and substantial decline in working capital. As of Sept. 30, 2013, the Company had $40.03 million in total assets, $35.36 million in total liabilities, $2.45 million in series C redeemable convertible preferred stock, and $2.21 million in total stockholders' equity. Bankruptcy Warning "Our cash requirements relate primarily to working capital needed to operate and grow our business, including funding operating expenses, growth in inventory to support both shipments of new units and servicing the installed base, and continued development and expansion of our products. Our ability to meet our future liquidity needs, capital requirements, and to achieve profitability will depend upon numerous factors, including the timing and quantity of product orders and shipments; the timing and amount of our operating expenses; the timing and costs of working capital needs; the timing and costs of building a sales base; the timing and costs of developing marketing and distribution channels; the timing and costs of product service requirements; the timing and costs of hiring and training product staff; the extent to which our products gain market acceptance; the timing and costs of product development and introductions; the extent of our ongoing and any new research and development programs; and changes in our strategy or our planned activities. If we are unable to fund our operations without additional external financing and therefore cannot sustain future operations, we may be required to delay, reduce and/or cease our operations and/or seek bankruptcy protection," the Company said in its quarterly report for the period ended Sept. 30, 2013. PRESSURE BIOSCIENCES: Obtains $630,380 From Private Placement ------------------------------------------------------------- Pressure BioSciences, Inc., entered into a securities purchase agreement with various accredited investors pursuant to which the Company sold an aggregate of 1,854 units for a purchase price of $340.00 per unit, or an aggregate Purchase Price of $630,360. This is the third tranche of a $1.5 million private placement previously disclosed by the Company in its Current Report on Form 8-K filed with the Securities and Exchange Commission on Dec. 12, 2013. The Purchasers in the third tranche of the Private Placement consisted of certain existing and new investors in the Company. The Private Placement was originally expected to raise $1.5 million and close on or before Jan. 31, 2014. On Jan. 29, 2014, the Company's Board of Directors voted to increase the subscription amount of the Private Placement by $718,750. The Board of Directors also voted to extend the Private Placement until Feb. 28, 2014. On Feb. 28, 2014, the Company's Board of Directors voted to increase the subscription amount once again to a total of $3.5 million and extended the closing to April 4, 2014. Together with the initial tranche of $1,000,000 that closed on Dec. 12, 2013, and the second tranche of $1,218,750 that closed Jan. 29, 2014, the total consideration received by the Company in the Private Placement is $2,849,110, which is comprised of $2,028,404 in cash and $820,706 from the conversion of outstanding indebtedness and Board of Director fees. One or more additional tranches in the Private Placement may close on or before April 4, 2014. Each unit purchased in the third tranche consists of (i) one share of Series K Convertible Preferred Stock, par value $0.01 per share, convertible into 1,000 shares of the Company's common stock, par value $0.01 per share and (ii) a warrant to purchase 500 shares of Common Stock at an exercise price equal to $0.425 per share, with a term expiring on Feb. 28, 2017. Additional information is available for free at: http://is.gd/aM5J6O About Pressure Biosciences Pressure BioSciences, Inc., headquartered in South Easton, Massachusetts, holds 14 United States and 10 foreign patents covering multiple applications of pressure cycling technology in the life sciences field. Pressure Biosciences disclosed a net loss applicable to common shareholders of $4.40 million on $1.23 million of total revenue for the year ended Dec. 31, 2012, as compared with a net loss applicable to common shareholders of $5.10 million on $987,729 of total revenue for the year ended Dec. 31, 2011. The Company's balance sheet at Sept. 30, 2013, showed $1.29 million in total assets, $2.96 million in total liabilities and a $1.67 million total stockholders' deficit. Marcum LLP, in Boston, Massachusetts, 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 had recurring net losses and continues to experience negative cash flows from operations. These conditions raise substantial doubt about its ability to continue as a going concern. PRICHARD, AL: Bankruptcy-Exit Plan Heads to Retirees for Vote ------------------------------------------------------------- Katy Stech, writing for Daily Bankruptcy Review, reported that lawyers for Prichard, Ala., got approval from a judge to send copies of the city's bankruptcy-exit plan to workers and retirees who have the power to reject it by vote. Bill Rochelle, the bankruptcy columnist for Bloomberg News, said Prichard, a suburb of Mobile, scheduled a confirmation hearing on June 3 for its municipal debt-adjustment plan after the bankruptcy court approved the explanatory disclosure statement. As previously reported by The Troubled Company Reporter, citing Mr. Rochelle, said the Chapter 9 proceeding, which began in October 2009, took more than four years because the bankruptcy court dismissed the case, saying the city didn't have outstanding bonds required by state law. On appeal, a federal district judge asked the Alabama Supreme Court to decide whether the city had the right type of debt to be eligible under Chapter 9 of the U.S. Bankruptcy Code. The state high court ruled in April 2012 that the city's debt qualified for Chapter 9. Prichard, a community of 25,000 people, laid the foundation for the newly filed plan by working out a settlement with city workers regarding their pensions, the Bloomberg report said. That settlement is incorporated into the plan. About Prichard, Alabama The city of Prichard, Alabama, a suburb of Mobile, filed for municipal reorganization on Oct. 27, 2009, its second time in eight years. The Chapter 9 petition in Mobile says that assets and debt both exceed $10 million. In September 2010, the Bankruptcy Court dismissed Prichard's petition after finding that the city lacked the capacity, under Alabama law, to file the petition. The city filed for bankruptcy after retirees stopped receiving pension checks. Prichard said it was having a "substantial under- funded pension obligation." Prichard has a population of 25,000. PROLOGIS INC: S&P Raises Preferred Stock Rating From 'BB+' ---------------------------------------------------------- Standard & Poor's Ratings Services raised its corporate credit rating on San Francisco-based Prologis Inc., Prologis L.P., and Prologis (collectively Prologis) to 'BBB+' from 'BBB'. The outlook is stable. At the same time, S&P raised its senior unsecured ratings on the company's debt to 'BBB+' from 'BBB' and its ratings on the company's preferred stock to 'BBB-' from 'BB+'. The upgrade reflects S&P's view that Prologis has strengthened its financial risk profile to "intermediate" from "significant". "Following early completion of the company's post-merger integration, portfolio repositioning, and de-leveraging plan in mid-2013, Prologis emerged with a tighter business strategy with a focus on select global and regional markets, a streamlined investment management business that has fewer and longer-duration funds, and lower financial risk," said Standard & Poor's credit analyst James Sung. Prologis has been very active in both capital market and asset recycling activities that have had the net effect of reducing debt, lowering borrowing costs, extending average debt maturities, and reducing currency exchange risk. As a result, the company's key credit measures are stronger. The upgrade also takes into account continued improvements in the company's business risk profile, which S&P assess as "strong" overall, and its more favorable view of the company's management and governance, which S&P now assess as "strong" from "satisfactory". From a business perspective, Prologis' global size, scale, and diversity are unmatched in the industrial subsector, and its real estate portfolio is very high quality. In S&P's view, these competitive strengths put Prologis in a good position to take advantage of the recovery in rental growth that S&P expects over the next several years. S&P believes positive rent growth coupled with further occupancy gains, which were already high at 95.1% at year-end 2013, will likely help the company achieve mid-single-digit same-store net operating income (NOI) growth in 2014-2015. Moreover, the investment management and development businesses will generate additional revenue and value-creation activities. Although S&P continues to view the development business as a competitive strength and profitable venture, it also notes the associated business and financial risks relating to its cyclical nature. Prologis' development activities are ramping up toward a stated long-term run-rate of $2.5 billion in starts per year, which is elevated on an absolute basis but still significantly lower on a relative basis compared with the legacy Prologis/AMB companies. In addition, at year-end 2013, the development portfolio was geographically diversified and contained a healthy level of build-to-suits (30%) and pre-leasing (45%). S&P expects Prologis to maintain its development/land portfolio within its target level of 10% to 15% of total assets (it was 10% at year-end 2013). "Our assessment of Prologis' management and governance is based on the company's high level of execution, as exemplified by the early completion of its post-merger integration, portfolio repositioning, and de-leveraging plan; a highly experienced and deep-benched management team; and good corporate governance practices. Moreover, Prologis has put in place a more conservative risk management program, which we consider important given that the business platform is among the most complex in the REIT sector. Overall our "strong" management and governance assessment is higher than other industrial peers and consistent with other subsector leading REITs," S&P added. "The stable outlook reflects our view that Prologis is well positioned to execute its three-year plan given favorable industrial subsector conditions, strong management capabilities, and more supportive financial policies. The company has successfully completed the substantial business and financial reconfiguration aspects of its post-merger transformation. We think the company's large, global platform should support increasing competitive differentiation versus other industrial peers. Moreover, the improvement in the company's credit measures appears sustainable," S&P noted. S&P would consider an upgrade to 'A-' over the next 12 to 24 months if the company's business risk profile strengthens toward the "excellent" category or its financial risk profile continues to improve toward S&P's "modest" category. The company has a relatively short track record as a merged company and S&P would like to see the company demonstrate stronger and more stable EBITDA margins versus peers, as well as greater operating efficiency. In addition, from a financial perspective, S&P would consider an upgrade if debt to EBITDA approaches the low end of our 4.5x to 7.5x "intermediate" range and fixed-charge coverage approaches the high end of S&P's 2.1x to 3.1x "intermediate" range, along with improvement in other key credit measures. S&P views a downgrade as unlikely in the near term, based on its assumptions supporting the upgrade. However, S&P would consider lowering the rating if business fundamentals deteriorate abruptly, leading to material operating and leasing difficulties, or if the company were to pursue more aggressive development and financing strategies, such that key credit measures were to start to deteriorate toward the weaker end of our "intermediate" range. QUANTUM FUEL: Obtains $15.3 Million From Securities Offering ------------------------------------------------------------ Quantum Fuel Systems Technologies Worldwide, Inc., has closed its previously-announced underwritten public offering of 2,357,500 common shares at a price to the public of $7.05 per share. The number of shares sold in the offering includes the underwriter's full exercise of the over-allotment option to purchase an additional 307,500 common shares. Quantum estimates net proceeds from the offering to be approximately $15.3 million, after deducting underwriting discounts and commissions and estimated offering expenses. Quantum intends to use the proceeds from the offering for general corporate and working capital purposes. Craig-Hallum Capital Group LLC acted as sole book-running manager of the offering. Ascendiant Capital Markets, LLC, acted as financial advisor to the Company in connection with the offering. About Quantum Fuel Lake Forest, Cal.-based Quantum Fuel Systems Technologies Worldwide, Inc. (Nasdaq: QTWW) develops and produces advanced vehicle propulsion systems, fuel storage technologies, and alternative fuel vehicles. Quantum's portfolio of technologies includes electronic and software controls, hybrid electric drive systems, natural gas and hydrogen storage and metering systems and other alternative fuel technologies and solutions that enable fuel efficient, low emission, natural gas, hybrid, plug-in hybrid electric and fuel cell vehicles. Quantum Fuel disclosed a net loss attributable to stockholders of $30.91 million in 2012 and a net loss attributable to common stockholders of $38.49 million in 2011. The Company's balance sheet at Sept. 30, 2013, showed $60.64 million in total assets, $50.27 million in total liabilities and $10.36 million in total stockholders' equity. Haskell & White LLP, in Irvine, California, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2012. The independent auditors noted that the Company does not have sufficient existing sources of liquidity to operate its business and service its debt obligations for a period of at least twelve months. These conditions, along with the Company's working capital deficit and recurring operating losses, raise substantial doubt about the Company's ability to continue as a going concern. QUIZNOS CORP: Joint Plan & Disclosures Hearing Set for April 25 --------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware will convene a combined hearing on April 25, 2014, commencing at 9:30 a.m., to consider the adequacy of the disclosure statement explaining QCE Finance LLC, et al.'s Joint Chapter 11 Prepackaged Plan of Reorganization and confirmation of the Plan. Any objections to the Disclosure Statement or confirmation of the Plan must be filed so as to be actually received by April 16. The Reply Deadline is set for April 22. A copy of the Debtors' Prepackaged Chapter 11 Plan of Reorganization is available for free at: http://bankrupt.com/misc/Quiznos_Plan.pdf A copy of the Disclosure Statement explaining the terms of the Chapter 11 Plan is available for free at: http://bankrupt.com/misc/Quiznos_Disc_Statement.pdf A copy of Prime Clerk's declaration regarding the solicitation of votes and tabulation of ballots cast on the Plan is available for free at: http://bankrupt.com/misc/Quiznos_Voting_Results.pdf About Quiznos Denver-based Quiznos -- http://www.quiznos.com-- is a chain designed for today's busy consumers who are looking for a high quality, tasty, freshly prepared alternative to traditional fast- food restaurants. With locations in 50 states and 30 countries, Quiznos is one of the world's premier quick-service restaurant chains and pioneer of the toasted sandwich; Quiznos restaurants offer creative, chef-created sandwiches and salads using premium ingredients. Quiznos was founded in 1981 by chefs who discovered that toasting brought out the best in every sandwich ingredient. QCE Finance LLC and its affiliates sought protection under Chapter 11 of the Bankruptcy Code on March 14, 2014. The lead case is QCE Finance LLC (Case No. 14-10543, Bankr. D.Del.). The case is assigned to Judge Peter J. Walsh. The Debtors' lead counsel are Ira S. Dizengoff, Esq., Philip C. Dublin, Esq., Jason P. Rubin, Esq., and Kristine G. Manoukian, Esq., at AKIN GUMP STRAUSS HAUER & FELD LLP, in New York. The Debtors' local counsel is Mark D. Collins, Esq., and Amanda Steele, Esq., at RICHARDS, LAYTON & FINGER, P.A., in Wilmington, Delaware. The Debtors' investment banker and financial advisor is Matthew J. Hart of LAZARD FRERES & CO. LLC. Paul Ruh, Mark A. Roberts, and Jonathan Tibus of Alvarez & Marsal serves as the Debtors' restructuring advisors. Prime Clerk LLC serves as the Debtors' claims and noticing agent. QUIZNOS CORP: Seeks to Assume Restructuring Support Agreement ------------------------------------------------------------- QCE Finance LLC, et al., ask authority from the U.S. Bankruptcy Court for the District of Delaware to assume a restructuring support agreement entered into prior to the Petition Date with certain consenting parties. A hearing to consider approval of the motion will be on April 9, 2014, at 3:00 p.m. (prevailing ET). Objections are due April 2. The RSA is the product of extensive, arm's-length negotiations between the Debtors and the Consenting Parties, who collectively hold approximately 61% in amount of claims under the First Lien Credit Agreement, approximately 99% in amount of claims under the Second Lien Credit Agreement and approximately 90% of the equity interests of Holdco. The RSA allows the Debtors to reduce their total principal amount of senior secured indebtedness by more than $400 million and begin the process of turning around their business. Importantly, the RDA also commits the Consenting First Lien Lenders to provide the Debtors with a $15 million postpetition priming, superpriority senior secured credit facility, which will act as a bridge loan for the Debtors to implement and consummate the restructuring transactions contemplated by the Plan and support the Debtors' operations during the Chapter 11 cases. The Debtors state that the support of the Consenting Parties was essential in allowing the Debtors to obtain the requisite votes accepting the Joint Prepackaged Chapter 11 Plan of Reorganization, and will continue to be critical in allowing the Debtors to achieve an expedient and successful reorganization. The voting deadline was March 14 and Vectra Bank Colorado, National Association, as lender under the marketing fund trust credit agreement, and 100% of the holders of first lien lenders claims that voted on the Plan voted to accept the Plan. The Plan was accepted by approximately 87% of the holders of First Lien Lender Claims, representing over 88% of the total amount of debt outstanding under the First Lien Credit Agreement, excluding insiders. The RSA requires the Debtors to have obtained confirmation of the Plan no later than 80 days after the Petition Date. As part of the exchange for the Consenting Parties? agreement to enter into the RSA, the Debtors have agreed to pay the reasonable and documented fees and expenses of the Consenting Parties? legal and financial advisors. The amount to be paid by the Debtors was not disclosed. About Quiznos Denver-based Quiznos -- http://www.quiznos.com-- is a chain designed for today's busy consumers who are looking for a high quality, tasty, freshly prepared alternative to traditional fast- food restaurants. With locations in 50 states and 30 countries, Quiznos is one of the world's premier quick-service restaurant chains and pioneer of the toasted sandwich; Quiznos restaurants offer creative, chef-created sandwiches and salads using premium ingredients. Quiznos was founded in 1981 by chefs who discovered that toasting brought out the best in every sandwich ingredient. QCE Finance LLC and its affiliates sought protection under Chapter 11 of the Bankruptcy Code on March 14, 2014. The lead case is QCE Finance LLC (Case No. 14-10543, Bankr. D.Del.). The case is assigned to Judge Peter J. Walsh. The Debtors' lead counsel are Ira S. Dizengoff, Esq., Philip C. Dublin, Esq., Jason P. Rubin, Esq., and Kristine G. Manoukian, Esq., at AKIN GUMP STRAUSS HAUER & FELD LLP, in New York. The Debtors' local counsel is Mark D. Collins, Esq., and Amanda Steele, Esq., at RICHARDS, LAYTON & FINGER, P.A., in Wilmington, Delaware. The Debtors' investment banker and financial advisor is Matthew J. Hart of LAZARD FRERES & CO. LLC. Paul Ruh, Mark A. Roberts, and Jonathan Tibus of Alvarez & Marsal serves as the Debtors' restructuring advisors. Prime Clerk LLC serves as the Debtors' claims and noticing agent. QUIZNOS CORP: Has Interim Authority to Tap $10MM in DIP Loans ------------------------------------------------------------- QCE Financial LLC, et al., obtained interim authority from the U.S. Bankruptcy Court for the District of Delaware to obtain secured postpetition financing on a superpriority basis up to $10 million from Wilmington Trust, National Association, as administrative agent for a consortium of lenders. The Debtors also obtained interim authority to use the cash collateral of the Prepetition First Lien Lenders and Vectra Bank Colorado, National Association, and provide them adequate protection for any diminution in value of their interests in the prepetition collateral. The final hearing to consider approval of the financing requests is scheduled for April 9, 2014, at 3:00 p.m. Objections are due April 2. A copy of the DIP Financing Motion is available for free at: http://bankrupt.com/misc/Quiznos_DIP_Financing_Motion.pdf About Quiznos Denver-based Quiznos -- http://www.quiznos.com-- is a chain designed for today's busy consumers who are looking for a high quality, tasty, freshly prepared alternative to traditional fast- food restaurants. With locations in 50 states and 30 countries, Quiznos is one of the world's premier quick-service restaurant chains and pioneer of the toasted sandwich; Quiznos restaurants offer creative, chef-created sandwiches and salads using premium ingredients. Quiznos was founded in 1981 by chefs who discovered that toasting brought out the best in every sandwich ingredient. QCE Finance LLC and its affiliates sought protection under Chapter 11 of the Bankruptcy Code on March 14, 2014. The lead case is QCE Finance LLC (Case No. 14-10543, Bankr. D.Del.). The case is assigned to Judge Peter J. Walsh. The Debtors' lead counsel are Ira S. Dizengoff, Esq., Philip C. Dublin, Esq., Jason P. Rubin, Esq., and Kristine G. Manoukian, Esq., at AKIN GUMP STRAUSS HAUER & FELD LLP, in New York. The Debtors' local counsel is Mark D. Collins, Esq., and Amanda Steele, Esq., at RICHARDS, LAYTON & FINGER, P.A., in Wilmington, Delaware. The Debtors' investment banker and financial advisor is Matthew J. Hart of LAZARD FRERES & CO. LLC. Paul Ruh, Mark A. Roberts, and Jonathan Tibus of Alvarez & Marsal serves as the Debtors' restructuring advisors. Prime Clerk LLC serves as the Debtors' claims and noticing agent. QUIZNOS CORP: To Honor Gift Cards and Groupons ---------------------------------------------- Patrick Fitzgerald, writing for The Wall Street Journal, reported that Quiznos may have filed for bankruptcy, but the sandwich chain will continue to honor gift cards and Groupons. According to the report, lawyers for Quiznos are asking a bankruptcy judge to allow the company's more-than 2,000 stores to honor gift certificates, Groupons and other promotional discounts. Gift cards, gift certificates and coupons can pose a thorny problem in bankruptcy, the report noted. Not only can companies choose whether or not to continue honoring outstanding cards after they file for bankruptcy, but the Bankruptcy Code also caps claims for unredeemed gift cards. There is more than $67,000 worth of unredeemed gift cards, plus another whopping $350,670 in Groupons in Quiznos, the report related. About Quiznos Denver-based Quiznos -- http://www.quiznos.com-- is a chain designed for today's busy consumers who are looking for a high quality, tasty, freshly prepared alternative to traditional fast- food restaurants. With locations in 50 states and 30 countries, Quiznos is one of the world's premier quick-service restaurant chains and pioneer of the toasted sandwich; Quiznos restaurants offer creative, chef-created sandwiches and salads using premium ingredients. Quiznos was founded in 1981 by chefs who discovered that toasting brought out the best in every sandwich ingredient. QCE Finance LLC and its affiliates sought protection under Chapter 11 of the Bankruptcy Code on March 14, 2014. The lead case is QCE Finance LLC (Case No. 14-10543, Bankr. D.Del.). The case is assigned to Judge Peter J. Walsh. The Debtors' lead counsel are Ira S. Dizengoff, Esq., Philip C. Dublin, Esq., Jason P. Rubin, Esq., and Kristine G. Manoukian, Esq., at AKIN GUMP STRAUSS HAUER & FELD LLP, in New York. The Debtors' local counsel is Mark D. Collins, Esq., and Amanda Steele, Esq., at RICHARDS, LAYTON & FINGER, P.A., in Wilmington, Delaware. The Debtors' investment banker and financial advisor is Matthew J. Hart of LAZARD FRERES & CO. LLC. Paul Ruh, Mark A. Roberts, and Jonathan Tibus of Alvarez & Marsal serves as the Debtors' restructuring advisors. Prime Clerk LLC serves as the Debtors' claims and noticing agent. REEVES DEVELOPMENT: IberiaBank & Reeves Differ on Use of Funds -------------------------------------------------------------- IberiaBank, a secured creditor of Reeves Development Company, LLC, and Reeves Commercial Properties, LLC, asserts a lien on cash, accounts receivable, and substantially all other assets. After filing for Chapter 11, Reeves has developed real estate that serves as collateral of IberiaBank and has generated postpetition accounts receivable which it needs to use to further develop an industrial property in Calcasieu Parish, Louisiana. In that regard, Reeves seeks the Court's authority to determine that the cash and accounts receivable generated postpetition are not the cash collateral of IberiaBank. In the alternative, Reeves wants to use cash that is a portion of the funds represented by cash generated by postpetition efforts. Arthur A. Vingiello, Esq., at Steffes, Vingiello & Mckenzie, LLC, in Baton Rouge, Louisiana, tells the Court that Reeves' debt to IberiaBank is about $7.5 million and IberiaBank has filed a proof of claim for more than $11 million. The value of the collateral allegedly securing the debt to IberiaBank exceeds $17.5 million. Thus, Mr. Vingiello notes, no adequate protection is needed since IberiaBank maintains a large equity cushion. Even if IberiaBank disputes the value, expenditure of the alleged cash collateral will provide IberiaBank with adequate protection by enhancing or at least maintaining the value of its collateral, adds Mr. Vingiello. In its response, IberiaBank stresses that Reeves has been authorized to use $422,668 of the bank's prepetition cash collateral but has exceeded beyond the amounts set forth in its budgets, all without obtaining Court approval for excess amounts. IberiaBank considers all postpetition accounts of Reeves to be the bank's cash collateral and opposes Reeves' use of that cash. If the Court should allow Reeves to continue to use the cash collateral, IberiaBank says there should be regular status hearings to insure that Reeves is operating within its budget. IberiaBank further wants Reeves to file a Motion with the Court if it cannot operate within the budget. About Reeves Development Reeves Development Company, LLC, a commercial and residential real estate developer, filed a Chapter 11 petition (Bankr. W.D. La. Case No. 12-21008) in Lake Charles, Louisiana, on Oct. 30, 2012. The closely held developer was founded in 1998 by Charles Reeves Jr., its sole owner. Reeves Development has about 80 employees and generates about $40 million in annual revenue, according to its Web site. Bankruptcy Judge Robert Summerhays oversees the case. Arthur A. Vingiello, Esq., at Steffes, Vingiello & McKenzie, LLC, in Baton Rogue, Louisiana, represents the Debtor as counsel. Reeves Development scheduled assets of $15,454,626 and liabilities of $20,156,597 as of the Petition Date. Affiliate Reeves Commercial Properties, LLC (Bankr. W.D. La. Case No. 12-21009) also sought court protection. The Bankruptcy Court approved on Feb. 21 the adequacy of information in the Amended Disclosure Statement explaining the Debtor's Plan of Reorganization dated Dec. 31, 2013. The Court has not set a confirmation hearing. Instead, the Court set a status conference for March 20, 2014. A full-text copy of the Dec. 31 version of the Amended Disclosure Statement is available for free at: http://bankrupt.com/misc/REEVESDEV_AmdDSDec31.PDF RENAISSANCE LEARNING: S&P Lowers Rating to 'B-'; Outlook Stable --------------------------------------------------------------- Standard & Poor's Ratings Services said it downgraded Wisconsin Rapids, Wisc.-based Renaissance Learning Inc. to 'B-' from 'B'. The outlook is stable. S&P also assigned its 'B-' issue-level rating to the company's $515 million senior secured credit facilities, which consist of a $40 million revolving credit facility due 2019 and a $475 million first-lien term loan facility due 2021. The recovery rating on this debt is '3' and indicates S&P's expectations of meaningful (50% to 70%) recovery in the event of payment default. Additionally, S&P assigned its 'CCC' issue-level rating to the company's $230 million senior secured second-lien term loan facility due 2022. The recovery rating on the debt is '6' and indicates S&P's expectations of negligible (0% to 10%) recovery in the event of a payment default. "The ratings on Renaissance Learning Inc. reflect its aggressive financial policy, evidenced by its increased debt leverage to about 10x at transaction close, up from the high-6x at Dec. 31, 2013, a modest position in a highly fragmented and niche overall instruction materials market, and federal and state government budget headwinds," said Standard & Poor's credit analyst David Tsui. S&P views the company's business risk profile as "fair" and financial risk profile as "highly leveraged." The company's high school penetration rate, highly recurring subscription revenue base, and above average profitability are partly offsetting factors. S&P views the industry risk as "intermediate," country risk as "very low," and the company's management and governance as "fair". The stable outlook reflects Renaissance Learning's strong order and revenue growth above the industry's average growth rate, continued highly recurring revenue base, and stable profitability, and our expectation that the firm will generate sufficient FOCF to meet the higher debt service payments. S&P could lower the rating if the education software industry landscape evolves and the company is unable to maintain its current market position, leading to customer attrition, reduced operating cash flow, and less than adequate liquidity. Although unlikely at this time, S&P could consider an upgrade if the company is able to continue its growth trajectory while maintaining its current profitability profile, leading to a higher EBITDA base and leverage declining to the mid-6x area. RENTAL SYSTEMS: Court Rejects Neal Wolf Employment -------------------------------------------------- Bankruptcy Judge Thomas M. Lynch denied the request of Rental Systems, L.L.C., to employ Neal Wolf & Associates, LLC as counsel for the Debtor, saying there are serious concerns that Neal L. Wolf, Esq., and NW&A appear to be subject and may continue to be subject to divided loyalties towards certain affiliated entities because of past or current representations and the sources of the firm's compensation. When such potential conflicts of interest are combined with the serious delays in disclosing the connections between NW&A and those entities, denial of the application is necessary, Judge Lynch said in a March 17, 2014 Memorandum Opinion available at http://is.gd/xVwPNqfrom Leagle.com. Rental Systems, L.L.C., dba Rental Systems Construction, in Huntley, Illinois, filed for Chapter 11 bankruptcy (Bankr. N.D. Ill. Case No. 13-81734) on May 9, 2013. Judge Thomas M. Lynch presides over the case. In its petition, the Debtor estimated $500,001 to $1 million in assets and $10 million to $50 million in liabilities. The petition was signed by Raymond E. Plote, manager and as trustee of the sole member. ROBERT J PETILLO: Case Summary and 12 Largest Unsecured Creditors ----------------------------------------------------------------- Debtor: Robert J Petillo 2 Laredo Dr Colts Neck, NJ 07722 Case No.: 14-15501 Chapter 11 Petition Date: March 24, 2014 Court: United States Bankruptcy Court District of New Jersey (Trenton) Judge: Hon. Christine M. Gravelle Debtor's Counsel: Richard J. Kwasny, Esq. KWASNY & REILLY 53 South Main St. Yardley, PA 19067 TEL: (215) 321-0300 Fax: (215) 321-9336 Email: kwasnylaw@aol.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million A list of the Debtor's 12 largest unsecured creditors is available for free at http://bankrupt.com/misc/njb14-15501.pdf The petition indicates that the Debtor is not an individual but a single asset real estate. ROYCE HOMES: Jury Deadlocks In Fraud Suit Against CEO ----------------------------------------------------- Law360 reported that a Texas federal jury was unable to come to a decision in a Chapter 7 trustee's suit against the former head of a defunct homebuilder who allegedly bilked the company out of tens of millions of dollars before it spiraled into bankruptcy. According to the report, at the conclusion of about two and a half days of deliberations, the jury notified U.S. District Judge Lee H. Rosenthal that it was unable to reach a consensus on allegations on former Royce Homes LP CEO John H. Speer. The case is Tow v. Amegy Bank N.A. et al., Case No. 4:11-cv-03700 (S.D. Tex.). The case was filed October 13, 2011. SAINT VINCENTS CATHOLIC: Claimant's Lawyer Facing Sanctions ----------------------------------------------------------- The Law Office of Sheryl R. Menkes, Esq., which represents Elaine Garvey, Administratrix for the Estate of Ronald Brophy, Deceased, will have to pay $83,515 to the liquidating trustee in the Chapter 11 cases of Saint Vincents Catholic Medical Centers of New York, et al., after Bankruptcy Judge Cecelia G. Morris imposed sanctions on the claimant's counsel's "deliberate, bad faith, vexatious conduct directly resulted in the Liquidating Trustee incurring substantial attorneys' fees that must now be paid." The Brophy estate failed to file a proof of claim despite receiving adequate notice of the bar date for filing such claims. The estate brought suit against certain debtors in state court purportedly to recover against the debtors' insurance policies. Despite having evidence that no insurance coverage existed and notice that the continuation of the state court action violated the injunction contained in the debtors' confirmed chapter 11 plan, the creditor's attorney sought and obtained an order from the state court directing the liquidating trustee to appear and show cause why the plan injunction should not be lifted to allow the suit to proceed. After the attorney refused to dismiss the state court action, the liquidating trustee sought relief in Bankruptcy Court by way of an order enforcing the plan injunction. After a hearing, the Court granted the trustee's motion, directed the attorney to dismiss the state court action, and stated that it would award the liquidating trustee certain costs and attorneys' fees incurred in connection with the actions of the creditor and her attorney. The Court requested additional submissions on the exact amount of fees to be awarded and set a further hearing. After receiving the submissions, the Court cancelled the further hearing and took the matter under advisement on the submissions. Judge Morris explains that, "Although the Court is aware that $83,515.00 represents a substantial sanctions award, the Court believes that such a sanction is appropriate here. The ultimate burden of the more than $80,000.00 in "excess fees and costs" that were reasonably and necessarily incurred by the Liquidating Trustee as a result of Ms. Menkes' vexatious conduct will be borne not by the Liquidating Trustee or his attorneys, but by unsecured creditors in this case, who are expected to receive a distribution somewhere in the range of 2.3 to 7.5%. . . . The Court believes that it is not appropriate to permit Ms. Menkes to shield herself from responsibility for the payment of those fees by hiding behind her unsupported contention that she is a sole practitioner who is unable to pay; the simple fact is that her deliberate, bad faith, vexatious conduct directly resulted in the Liquidating Trustee incurring substantial attorneys' fees that must now be paid." The Court held that the effectiveness of the Sanctions Order will be stayed for a period of 14 days from the date of its entry to allow Ms. Menkes to seek a stay pending appeal should she so desire. A copy of Judge Morris, March 21, 2014 Memorandum Decision Imposing Sanctions is availale at http://is.gd/GpgsYIfrom Leagle.com. About Saint Vincents Saint Vincents Catholic Medical Centers of New York, doing business as St. Vincent Catholic Medical Centers -- http://www.svcmc.org/-- was anchored by St. Vincent's Hospital Manhattan, an academic medical center located in Greenwich Village and the only emergency room on the Westside of Manhattan from Midtown to Tribeca, St. Vincent's Westchester, a behavioral health hospital in Westchester County, and continuing care services that include two skilled nursing facilities in Brooklyn, another on Staten Island, a hospice, and a home health agency serving the Metropolitan New York area. Saint Vincent Catholic Medical Centers of New York and six of its affiliates first filed for Chapter 11 protection on July 5, 2005 (Bankr. S.D.N.Y. Case Nos. 05-14945 through 05-14951). St. Vincents Catholic Medical Centers returned to bankruptcy by filing another Chapter 11 petition (Bankr. S.D.N.Y. Case No. 10-11963) on April 14, 2010. The Debtor estimated assets of $348 million against debts totaling $1.09 billion in the new petition. Although the hospitals emerged from the prior reorganization in July 2007 with a Chapter 11 plan said to have "a realistic chance" of paying all creditors in full, the bankruptcy left the medical center with more than $1 billion in debt. The new filing occurred after a $64 million operating loss in 2009 and the last potential buyer terminated discussions for taking over the flagship hospital. On June 29, 2012, the Bankruptcy Court entered an order confirming Saint Vincents' Second Amended Chapter 11 Plan. The plan was declared effective on the same day. Saint Vincents shed off assets during the bankruptcy. SALANDER-O'REILLY: Dispute Over Madonna and Child Goes to Trial --------------------------------------------------------------- Chief Bankruptcy Judge Cecelia G. Morris denied cross-motions for summary judgment filed by Alan M. Jacobs, the Liquidation Trustee of the SOG Liquidation Trust, which was established in the Chapter 11 case of Salander-O'Reilly Galleries, LLC; and filed by Kraken Investments Limited to determine the validity, extent and priority of interests asserted in the painting Madonna and Child by Sandro Botticelli. The sole issues before the Court are (i) whether a perfected blanket lien in the debtor's inventory attached to the Botticelli while it was on consignment to the Debtor's art gallery, and (ii) if so, whether that lien has priority over the consignor's interest in the return of the painting. In a March 21, 2014 Memorandum Decision available at http://is.gd/ujqsdvfrom Leagle.com, the Court concludes that material issues of fact preclude summary judgment for the either party at this time. Both motions are denied. The case is styled, ALAN M. JACOBS, as Liquidation Trustee of the SOG Liquidation Trust, Plaintiff v. KRAKEN INVESTMENTS LIMITED, Defendant, Adv. Proc. No. 13-09004 (Bankr. S.D.N.Y.). Mr. Jacobs is represented by: Robert J. Feinstein, Esq. John A. Morris, Esq. Ilan D. Scharf, Esq., PACHULSKI STANG ZIEHL & JONES LLP 780 Third Avenue, 36th Floor New York, New York 10017 Telephone: (212) 561-7700 Telecopy: (212) 561-777 E-mail: rfeinstein@pszjlaw.com jmorris@pszjlaw.com ischarf@pszjlaw.com Kraken Investments Limited New York is represented by: FAUST OPPENHEIM LLP David I. Faust, Esq. Petra v.Z. Davenport, Esq. 488 Madison Ave New York, NY 10022 Tel: 212-751-7700 E-mail: davidfaust@frolaw.com petradavenport@frolaw.com About Salander-O'Reilly Established in 1976, New York-based Salander-O'Reilly Galleries LLC -- http://www.salander.com/-- exhibits and manages fine art from renaissance to contemporary. On Nov. 1, 2007, three creditors filed an involuntary chapter 7 petition against the gallery (Bankr. S.D.N.Y. Case Number 07-13476). The petitioners, Carol F. Cohen of Two Swans Farm, Cavallon Family LP, and Richard Ellenberg, disclosed total claims of more than $5 million. Amos Alter, Esq., at Troutman Sanders LLP and John Koegel, Esq., at The Koegel Group LLP represent the petitioners. On Nov. 9, 2007, the Debtor's case was converted to a chapter 11 proceeding (Bankr. S.D.N.Y. Case No. 07-30005). Alan D. Halperin, Esq., at Halperin Battaglia Raicht, LLP, represents the gallery. Salander-O'Reilly Galleries is owned by Lawrence B. Salander and his wife, Julie D. Salander, of Millbrook, New York. The couple also has membership interests in galleries including non-debtor entities, Renaissance Art Investors and Salander Decorative Arts LLC. The couple filed for chapter 11 protection on Nov. 2, 2007 (Bankr. S.D.N.Y. Case No. 07-36735). Douglas E. Spelfogel, Esq. and Richard J. Bernard, Esq. at Baker & Hostetler LLP and Susan P. Persichilli, Esq. at Buchanan Ingersoll PC represent the Debtors in their restructuring efforts. When they filed for bankruptcy, Mr. and Mrs. Salander listed assets and debts between $50 million and $100 million. Prior to bankruptcy, Mr. Salander resigned as Salander-O'Reilly Galleries' manager and turned over the control to Triax Capital Advisors LLC, an independent turnaround firm. In April 2008, Bankruptcy Judge Cecelia Morris ordered the couple to surrender control of their finances to an independent trustee and approved the conversion of the couple's chapter 11 case to a chapter 7 liquidation at the behest of the U.S. Trustee. SEANERGY MARITIME: Reports $17.1 Million Net Income in Q3 2013 -------------------------------------------------------------- Seanergy Maritime Holdings Corp. reported net income of $17.13 million on $4.29 million of net vessel revenue for the three months ended Sept. 30, 2013, as compared with a net loss of $42.01 million on $11.55 million of net vessel revenue for the same period in 2012. For the nine months ended Sept. 30, 2013, the Company net income of $3.43 million on $16.74 million of net vessel revenue as compared with a net loss of $76.73 million on $47.11 million of net vessel revenue for the same period during the prior year. As of Sept. 30, 2013, the Company had $56.78 million in total assets, $154.95 million in total liabilities and a $98.17 million total shareholders' deficit. Stamatis Tsantanis, the Company's chairman and chief executive officer, stated: "I am pleased to announce a number of notable developments for Seanergy: "In the third quarter of 2013, our operational performance and the implementation of our restructuring plan lead to positive financial results. "As regards to the successful completion of our financial restructuring plan, on February 12, 2014 we entered into a definitive agreement with our remaining lender to unwind our final credit facility. Under the terms of this agreement, Seanergy will sell the underlying four vessels to a nominee of the bank with full satisfaction of the outstanding indebtedness of approximately $145 million, along with the extinguishment of the corporate guarantee." "Finally, market conditions in the third quarter of 2013 were better than what they were in the same period last year. As a result, the time charter equivalent earnings for our fleet rose by 42% compared to the third quarter of 2012." A copy of the press release is available for free at: http://is.gd/h0Kfd8 About Seanergy Athens, Greece-based Seanergy Maritime Holdings Corp. is an international company providing worldwide seaborne transportation of dry bulk commodities. The Company owns and operates a fleet of seven dry bulk vessels that consists of three Handysize, two Supramax and two Panamax vessels. Its fleet carries a variety of dry bulk commodities, including coal, iron ore, and grains, as well as bauxite, phosphate, fertilizer and steel products. In its audit report on the consolidated financial statements for the year ended Dec. 31, 2012, Ernst & Young (Hellas) Certified Auditors Accountants S.A., in Athens, Greece, expressed substantial doubt about Seanergy Maritime's ability to continue as a going concern. The independent auditors noted that the Company has not complied with the principal and interest repayment schedule and with certain covenants of its loan agreements, which in turn gives the lenders the right to call the debt. "In addition, the Company has a working capital deficit, recurring losses from operations, accumulated deficit and inability to generate sufficient cash flow to meet its obligations and sustain its operations." The Company reported a net loss of US$193.8 million on US$55.6 million of net vessel revenue in 2012, compared with a net loss of US$197.8 million on US$104.1 million of net vessel revenue in 2011. SEARS HOLDINGS: S&P Affirms 'CCC+' CCR & Removes From CreditWatch ----------------------------------------------------------------- Standard & Poor's Ratings Services affirmed its ratings on the Hoffman Estate, Ill.-based Sears Holdings Corp., including the 'CCC+' corporate credit rating. S&P removed the ratings from CreditWatch negative, where it placed them on Jan. 13, 2014. The outlook is negative. The rating affirmation reflects S&P's view that we do not envision a specific default scenario in the next 12 months despite its expectations for continued negative operating trends and significant cash burn because we believe Sears has the ability to complete asset sales and has access to its revolving credit facility. "Sears continued to perform poorly, and the operating performance decline accelerated in 2013," said Standard & Poor's credit analyst Ana Lai. "Domestic comparable-store sales declined 3.8%, with Kmart stores declining 3.6% and Sears stores declining 4.1%. This reflects weakness in most categories, including home appliances, which is Sears' core product category," added Ms. Lai. Gross margin eroded more than 200 basis points (bps) from costs of carrying both traditional promotional market discounts and Shop Your way points. Negative EBITDA and the need to fund capital expenditures (capex) and pension contribution resulted in cash burn of $1.2 billion in 2013. S&P expects negative performance to persist in 2014 absent a sharp reduction in the costs of parallel promotion costs. While Sears has reported improvement in member engagement metrics, the success of its current strategy is uncertain. S&P do not expect this to help stabilize operating performance in 2014. As such, S&P expects Sears to continue generating operating losses and S&P views its capital structure as unsustainable at this level of earnings and cash flow. SEQUENOM INC: Board Approves Salary Increases for Executives ------------------------------------------------------------ Sequenom, Inc., filed a current report on Form 8-K to report certain organizational changes within the Company. The Company filed an amendment to the initial Form 8-K to provide additional disclosures. On March 5, 2014, upon a recommendation from the Compensation Committee of the Board of Directors of the Company, the Board approved an increase in the annual base salaries of: (a) Harry F. Hixson, Jr., the Company's chief executive officer, from $520,000 to $535,600; (b) William Welch, the Company's president and chief operating officer, from $400,000 to $412,000; (c) Dirk van den Boom, the Company's executive vice president, research & development, from $375,000 to $386,250; (d) Carolyn Beaver, the Company's vice president and chief accounting officer, to $336,423; and (e) Paul Maier, the Company's chief financial officer, to $368,471. In connection with Mr. Welch's appointment as the Company's chief executive officer, effective on June 10, 2014, the Board approved an increase in the annual base salary of Mr. Welch from $412,000 to $450,000. The salary increases are effective Jan. 1, 2014. Additionally, executives are eligible to a bonus payment pursuant to the Company's 2014 management bonus plan. A full-text copy of the Form 8-K report is available at: http://is.gd/OsT4TN About Sequenom Sequenom, Inc. (NASDAQ: SQNM) -- http://www.sequenom.com/-- is a life sciences company committed to improving healthcare through revolutionary genetic analysis solutions. Sequenom develops innovative technology, products and diagnostic tests that target and serve discovery and clinical research, and molecular diagnostics markets. The company was founded in 1994 and is headquartered in San Diego, California. Sequenom incurred a net loss of $107.40 million on $162.42 million of total revenues for the year ended Dec. 31, 2013, as compared with a net loss of $117.02 million on $89.69 million of total revenues in 2012. The Company incurred a net loss of $74.13 million in 2011. As of Dec. 31, 2013, the Company had $144.70 million in total assets, $191.20 million in total liabilities and a $46.50 million total stockholders' deficit. SHOTWELL LANDFILL: U.S. Trustee Appoints 6-Member Creditors Panel ----------------------------------------------------------------- The U.S. Trustee for Region appointed six members to the official committee of unsecured creditors in the Chapter 11 case of Shotwell Landfill, Inc. The Creditors Committee members are: 1. Holding Oil Company, Inc. c/o James Holding P.O. Box 648 Wake Forest, North Carolina Tel: 278588-0648 2. Double "J" Enterprises, Inc. c/o Byron L. Saintsing P.O. Box 26268 Raleigh, North Carolina Tel: 27611 3. Capital Properties of Raleigh VI c/o David Stallings 3818 Bland Road Raleigh, North Carolina Tel: 27609 4. Grant D. Kiser 6636 Latigo Lane Wendell, North Carolina Tel: 28591 5. John Brown Brown Investments 1632 Heritage Garden Street Wake Forest, North Carolina Tel: 27587 About Shotwell Landfill, Inc. Raleigh, North Carolina-based Shotwell Landfill, Inc., filed a Chapter 11 petition (Bankr. E.D.N.C. Case No. 13-02590) in Wilson on April 19, 2013. The Debtor disclosed $23,027,736 in assets and $10,039,308 in liabilities as of the Chapter 11 filing. Blake P. Barnard, Esq., William P. Janvier, Esq., and Samantha Y. Moore, Esq., at the Janvier Law Firm, PLLC, in Raleigh, N.C., represent the Debtor as counsel. William W. Pollock, Esq., at Ragsdale Liggett PLLC, in Raleigh, N.C., represents the Debtor as special counsel. The Bankruptcy Administrator was unable to appoint an official committee of unsecured creditors in the Debtor's case. The Debtor, in its amended schedules disclosed $23,043,736 in assets and $10,048,364 in liabilities as of the Chapter 11 filing. The Court will convene a hearing on March 25, 2014, at 10:00 a.m., to consider confirmation of the Debtors' consolidated Plan of Reorganization dated Feb. 3, 2014. The Debtors' plan proposes to pay all Allowed Claims in full. SPENDSMART PAYMENTS: Alex Minicucci Stake at 24.8% as of Feb. 11 ---------------------------------------------------------------- In a Schedule 13D filed with the U.S. Securities and Exchange Commission, Alex Minicucci disclosed that as of Feb. 11, 2014, he beneficially owned 3,882,500 shares of common stock of The Spendsmart Payments Company representing 24.8 percent of the shares outstanding. A copy of the regulatory filing is available for free at http://is.gd/PhdjFe 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." The Spendsmart Payments incurred 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. STANADYNE HOLDINGS: Has $6MM Term Loan Agreement with Kohlberg -------------------------------------------------------------- Stanadyne Holdings, Inc., and funds managed by Kohlberg Management IV, L.L.C., entered into a Convertible Subordinated Note agreement providing for a term loan in an aggregate principal amount of $6 million. The Notes carry a five-year term with an interest rate of 12 percent per annum, with interest payable in semi-annual installments in arrears commencing in August 2014 and principal due at maturity. At the option of Holdings, the interest payments may be made utilizing payment-in-kind notes. The Notes include repayment provisions upon change of control or refinancing of Holdings' 12 percent Senior Discount Notes due 2015. The Notes are subordinated to Holdings' 12 percent Senior Discount Notes due 2015 and are convertible to common stock at fair market value at Kohlberg's discretion. A majority of Holdings' outstanding common stock is held by funds managed by Kohlberg. About Stanadyne Holdings Stanadyne Corporation, headquartered in Windsor, Connecticut, is a designer and manufacturer of highly-engineered precision- manufactured engine components, including fuel injection equipment for diesel engines. Stanadyne sells engine components to original equipment manufacturers and the aftermarket in a variety of applications, including agricultural and construction vehicles and equipment, industrial products, automobiles, light duty trucks and marine equipment. Revenues for LTM ended Sept. 30, 2010 were $240 million. Stanadyne Holdings disclosed a net loss of $11.50 million on $251.45 million of net sales for the year ended Dec. 31, 2012, as compared with a net loss of $32.50 million on $245.76 million of net sales in 2011. The Company incurred a net loss of $9.98 million in 2010. The Company's balance sheet at Sept. 30, 2013, showed $377.53 million in total assets, $456.05 million in total liabilities, $537,000 in redeemable non-controlling interest and a $79.05 million total stockholders' deficit. * * * As reported by the TCR on June 27, 2013, Moody's Investors Service downgraded Stanadyne Holdings Inc.'s Corporate Family Rating to Caa2 from Caa1 to reflect Moody's view that a debt restructuring is likely in the near-term. In March 2012, Standard & Poor's Ratings Services revised its long-term outlook to negative from stable on Windsor, Conn.-based Stanadyne Corp. At the same time, Standard & Poor's affirmed its ratings, including the 'CCC+' corporate credit rating, on Stanadyne. "The outlook revision reflects the risk that Stanadyne may not be able to service debt obligations of its parent, Stanadyne Holdings Inc. as early as August 2012," said Standard & Poor's credit analyst Dan Picciotto. SUMMIT III: Avoidance Suit v. Craig Duet Survives Dismissal Bid --------------------------------------------------------------- Bankruptcy Judge Patrick M. Flatley denied, without prejudice, Craig Duet's request to dismiss the Complaint filed against him by Thomas H. Fluharty, the Chapter 7 Trustee, appointed to administer Summit III LLC's bankruptcy estate complaint that seeks to avoid and recover transfers made by the Debtor to Mr. Duet according to the terms of a negotiated litigation settlement agreement, executed by the Debtor, Mr. Duet, Mountaintop, LLC, Anthony J. Skattell, III, and Thomas Tretheway. The Chapter 7 Trustee seeks to recover $66,000 based on claims of actual and constructive fraud and transfers to an insider under the West Virginia Uniform Fraudulent Transfers Act pursuant to his powers under 11 U.S.C. Sec. 544(b); to avoid and recover $282,000 as fraudulent transfers under 11 U.S.C. Sec. 548(a)(1), and to recover $132,000 as preferential transfers under 11 U.S.C. Sec. 547(b). The case is, THOMAS H. FLUARTY, TRUSTEE, Plaintiff, v. CRAIG M. DUET, Defendant, Adv. Proc. No. 13-ap-00045 (Bankr. N.D. W.Va.). A copy of the Court's March 24, 2014 Memorandum Opinion is available at http://is.gd/E8uFEXfrom Leagle.com. About Summit III Summit III LLC, based in Snowshoe, West Virginia, filed for bankruptcy (Bankr. N.D. W.Va. Case No. 11-01448) on Aug. 11, 2011. Judge Patrick M. Flatley presides over the case. Steven L. Thomas, Esq., at Kay, Casto & Chaney, serves as the Debtor's bankruptcy counsel. The Debtor disclosed $12,655,700 in assets and $13,050,884 in liabilities as of the Chapter 11 case. The petition was signed by Samuel M. Levin, Summit III's manager. The case was converted to a case under chapter 7 on June 25, 2013. On the same date, the United States Trustee designated Thomas Fluharty as Chapter 7 trustee. SUNTECH POWER: Solyndra Fights Bid for Ch. 15 Protection -------------------------------------------------------- Law360 reported that Solyndra Residual Trust objected to Suntech Power Holdings Co. Ltd.'s petition for Chapter 15 protection, claiming Suntech is trying to avoid liability in litigation with American noteholders and for destroying the American solar panel industry. According to the report, Suntech, formerly one of the world's largest makers of photovoltaic cells, filed for Chapter 15 protection in New York bankruptcy court in February in an attempt to stop a group of creditors from forcing the company into an involuntary Chapter 7 liquidation. About Suntech Wuxi, China-based Suntech Power Holdings Co., Ltd., produces solar products for residential, commercial, industrial, and utility applications. Suntech has delivered more than 25,000,000 photovoltaic panels to over a thousand customers in more than 80 countries. Suntech Power Holdings Co., Ltd., received from the trustee of its 3 percent Convertible Notes a notice of default and acceleration relating to Suntech's non-payment of the principal amount of US$541 million that was due to holders of the Notes on March 15, 2013. That event of default has also triggered cross-defaults under Suntech's other outstanding debt, including its loans from International Finance Corporation and Chinese domestic lenders. Suntech Power had involuntary Chapter 7 bankruptcy proceedings initiated against it on Oct. 14, 2013, in U.S. Bankruptcy Court in White Plains, New York (Bankr. S.D.N.Y. Case No. 13-bk-13350), by holders of more than $1.5 million of defaulted securities under a 2008 $575 million indenture. The Chapter 7 Petitioners are Trondheim Capital Partners, L.P., Michael Meixler, Longball Holdings, LLC, and Jiangsu Liquidators, LLC. They are represented by Jay Teitelbaum, Esq., at Teitelbaum & Baskin LLP, in White Plains, New York. Suntech Power on Jan. 31, 2014, disclosed that it has signed a Restructuring Support Agreement relating to the petition for involuntary bankruptcy filed against it under chapter 7 of the U.S. Bankruptcy Code. Under the RSA, the parties agreed that chapter 7 proceedings will be dismissed following recognition of the provisional liquidation proceeding previously filed by the Company in the Cayman Islands under chapter 15 of the U.S. Bankruptcy Code. In February 2014, Suntech Power disclosed that the joint provisional liquidators of the Company appointed by the Grand Court of the Cayman Islands to oversee the restructuring of the Company have commenced a Chapter 15 proceeding under the U.S. Bankruptcy Code in a federal court in the Southern District of New York. Under such a proceeding, the Company is seeking to have recognized in the United States the Company's overseas provisional liquidation which has previously been granted in the Cayman Islands. TEAM NATION: Seeks to Cancel Unauthorized Certificates ------------------------------------------------------ Team Nation Holdings, Corp., on Jan. 8, 2014, delivered certificates representing 60 preferred shares and one billion common shares to its Transfer Agent with instructions to cancel because the certificates were issued without corporate authority. The Transfer Agent failed to follow the Company's instructions and the certificates have been deposited into the registry of a court in Tampa, Florida, as a result of a lawsuit claiming ownership of the certificates. There is no record of a designation of the Preferred A shares filed with the Nevada Secretary of State. The Company intended for these unauthorized certificates to be canceled and the resolution for cancellation was to be forwarded to the DTC in an effort to have the "chill" lifted from the Company's stock. The Company continues to pursue all legal options to have the court determine that the unauthorized certificates be canceled and declared void. About Team Nation Newport Beach, Calif.-based Team Nation Holdings Corporation is a management and services company specializing in management solutions for title companies and providing title production services. The Company reported net income of $323,051 on $1.08 million of total revenue for the nine months ended Sept. 30, 2011, compared with net income of $375,694 on $1.25 million of total revenue for the same period during the prior year. The Company's balance sheet at Sept. 30, 2011, showed $3.04 million in total assets, $5.57 million in total liabilities, and a $2.52 million total shareholders' deficit. As reported by the TCR on April 13, 2011, Kelly & Company, in Costa Mesa, Calif., said in its report that the Company's significant debt servicing requirements, its ongoing operating losses and negative cash flows along with the depressed value of its common stock gives raise to substantial doubt about the Company's ability to continue as a going concern. The Company has sustained recurring losses and negative cash flows from operations, at Dec. 31, 2010 it had negative working capital of $4.2 million, total liabilities of $6.9 million, and a stockholders' deficit of $3.9 million. The Company's only significant source of revenue, and its sole customer, is a related party. The Company expects that it will need to raise substantial additional capital to accomplish its business plan over the next several years and plans to generate the additional cash needed through the sale of its common stock that currently has a depressed value. The Company's most significant asset is a group of eight non-current notes receivable - related party issued by the Company's directors, amounting to $2.2 million at Dec. 31, 2010 (representing 73% of total assets). TLC HEALTH: Can Employ Cash Realty & Auctions as Appraisers ----------------------------------------------------------- TLC Health Network sought and obtained authorization from the U.S. Bankruptcy Court for the Western District of New York to employ Cash Realty & Auctions, LLC as the Debtor's furniture, fixture, and equipment appraisers. The retention of Cash Realty is vital to the Debtor as there has been no recent valuation of the Debtor's furniture, fixture, and equipment. The Debtor's secured creditors have requested an appraisal and a valuation of the Debtor's furniture, fixture, and equipment will be critical in the Debtor's analysis as sale transactions are being pursued. Cash Realty has proposed a fee of $3,500 for the preparation and delivery of an appraisal report of the Debtor's furniture, fixture, and equipment. Cash Realty has requested payment of the fee upon delivery of the appraisal report. R. Cash Cunningham, member of Cash Realty, assured the Court that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtors and their estates. About TLC Health Network TLC Health Network filed a Chapter 11 petition (Bankr. W.D.N.Y. Case No. 13-13294) on Dec. 16, 2013. The petition was signed by Timothy Cooper as Chairman of the Board. The Debtor estimated assets of at least $10 million and debts of at least $1 million. Jeffrey A. Dove, Esq., at Menter, Rudin & Trivelpiece, P.C., serves as the Debtor's counsel. Damon & Morey LLP is the Debtor's Special Health Care Law and Corporate Counsel. The Bonadio Group is the Debtor's accountants. The case is assigned to the Hon. Carl L. Bucki. A three-member panel composed of Cannon Design, Chautauqua Opportunities, Inc., and Jamestown Rehab Services has been appointed as the official unsecured creditors committee. Bond, Schoeneck & King, PLLC is the counsel to the Committee. Gleichenhaus, Marchese & Weishaar, PC is the general counsel for Linda Scharf, the Patient Care Ombudsman of TLC Health. Howard P. Schultz & Associates, LLC is appraiser. TRANSGENOMIC INC: Randal Kirk Stake at 37.2% as of March 5 ---------------------------------------------------------- In an amended Schedule 13D filed with the U.S. Securities and Exchange Commission, Randal J. Kirk and his affiliates disclosed that as of March 5, 2014, they beneficially owned 3,901,561 shares of common stock of Transgenomic, Inc., representing 37.2 percent of the shares outstanding. A copy of the regulatory filing is available for free at http://is.gd/BTDwqk About Transgenomic Transgenomic, Inc. -- http://www.transgenomic.com/-- is a global biotechnology company advancing personalized medicine in cardiology, oncology, and inherited diseases through its proprietary molecular technologies and world-class clinical and research services. The Company is a global leader in cardiac genetic testing with a family of innovative products, including its C-GAAP test, designed to detect gene mutations which indicate cardiac disorders, or which can lead to serious adverse events. Transgenomic has three complementary business divisions: Transgenomic Clinical Laboratories, which specializes in molecular diagnostics for cardiology, oncology, neurology, and mitochondrial disorders; Transgenomic Pharmacogenomic Services, a contract research laboratory that specializes in supporting all phases of pre-clinical and clinical trials for oncology drugs in development; and Transgenomic Diagnostic Tools, which produces equipment, reagents, and other consumables that empower clinical and research applications in molecular testing and cytogenetics. Transgenomic believes there is significant opportunity for continued growth across all three businesses by leveraging their synergistic capabilities, technologies, and expertise. The Company actively develops and acquires new technology and other intellectual property that strengthens its leadership in personalized medicine. Transgenomic incurred a net loss of $8.32 million in 2012, a net loss of $9.78 million in 2011 and a net loss of $3.13 million in 2010. The Company's balance sheet at Sept. 30, 2013, showed $33.18 million in total assets, $17.78 million in total liabilities and $15.39 million in total stockholders' equity. As reported by the TCR on Feb. 13, 2013, Transgenomic entered into a forbearance agreement with Dogwood Pharmaceuticals, Inc., a wholly owned subsidiary of Forest Laboratories, Inc., and successor-in-interest to PGxHealth, LLC, with an effective date of Dec. 31, 2012. UNITED AIRLINES: Fitch Assigns 'B' Rating to 2014-1 Class A Certs ----------------------------------------------------------------- Fitch Ratings assigns the following expected ratings to United Airline's (UAL, rated 'B', Outlook Positive) proposed Pass Through Trusts Series 2014-1: -- $736,647,000 Class A certificates due in April 2026 'A(EXP)'; -- $212,812,000 Class B certificates due in April 2022 'BB+(EXP)'. The A-tranche rating is primarily driven by a high level of overcollateralization and a high quality collateral pool which support Fitch's expectations that A tranche holders should receive full principal recovery prior to maturity even in a harsh stress scenario. The ratings are also supported by the inclusion of an 18 month liquidity facility, cross-collateralization/cross-default features, and the legal protection afforded by Section 1110 of the U.S. bankruptcy code. The structural features increase the likelihood that the class A certificates could avoid default even if United were to file bankruptcy and subsequently reject the aircraft. The initial A-tranche LTV, as cited in the prospectus, is 55.1%, and Fitch's maximum stress case LTV (the primary driver for the A- tranche rating) through the life of the transaction is 92.6%. This level of overcollateralization provides a significant amount of protection for the A-tranche holders. The 'BB+' rating for the B-tranche represents a four-notch uplift (maximum is five per Fitch's EETC criteria) from United's Issuer Default Rating (IDR) of 'B'. The four-notch uplift primarily reflects Fitch's view of the affirmation factor for this collateral pool (the likelihood that United would choose to affirm the aircraft in a potential default scenario). Secondary factors for the B tranche rating include the presence of an 18 month liquidity facility and Fitch's view of recovery prospects in a stress scenario. Fitch considers the affirmation factor for the aircraft in this portfolio to be high as the 737-900ER, 787-8 and -9, and ERJ-175LR are considered key strategic elements of UAL's fleet. The affirmation factor is also a supporting consideration for the A-tranche rating. Transaction Overview: UAL plans to raise $949,459,000 in an EETC transaction to fund 25 new aircraft that are expected to be delivered between March and December of 2014. The proceeds of the certificates will be used to acquire class A and class B equipment notes, i.e. the aircraft mortgage obligations issued by United. The A-tranche will be sized at $736,647,000 with a 12.0 year tenor, a weighted average life of 8.8 years and an initial LTV of 55.1% (per the prospectus). Fitch calculates the initial LTV at 58.8% using values provided by an independent appraiser. The subordinate B-tranche will be sized at $212,812,000 with an 8.0 year tenor and a weighted average life of 5.9 years. The initial prospectus LTV for the B-tranche is 71%. Fitch calculates the initial LTV at 75.8%. Collateral Pool: The transaction will be secured by a perfected first priority security interest in 16 new Boeing aircraft including 13 737-900ERs, 2 787-8s, 1 787-9, and 9 Embraer 175LRs. Fitch classifies both variants of the 787 as Tier 1 collateral while the 737-900ERs and ERJ-175LRs are considered low Tier 1/high Tier 2 collateral. All three types are considered strategically important to UAL's fleet. ERJ-175LRs to be leased: A distinction between UAL 2014-1 and other recently issued EETCs is that the Embraer 175LRs in this fleet will be leased to a regional partner from the inception of the transaction rather than being operated directly by United. EETCs generally incorporate the legal flexibility to lease the collateral aircraft during the life of the transaction, but most recent transactions have not included leases from the inception. The leases will be with Mesa Airlines, Inc. Importantly, according to the transaction documents the leases to Mesa will be subject and subordinated to the note indentures. This means that if United were to default, creditors should be able to repossess the aircraft despite the fact that they are being operated by a third party. For this reason, Fitch does not believe that the leases materially affect the credit profile of the transaction. Liquidity Facility: The Class A and Class B certificates benefit from a dedicated 18-month liquidity facility which will be provided by Credit Agricole Corporate and Investment Bank, acting via its New York Branch (rated 'A'/'F1' with a Stable Outlook). Cross-default & cross-collateralization provisions: Each note will be fully cross-collateralized and all indentures will be fully cross-defaulted from day one, which Fitch believes will limit UAL's ability to 'cherry-pick' aircraft in a potential restructuring. Pre-funded deal: Proceeds from the transaction will be used to pre-fund deliveries expected between March and December of 2014. Accordingly, proceeds will initially be held in escrow by Credit Agricole, the designated depositary, until the aircraft are delivered. Key Rating Drivers Stress Case: The ratings for the class A certificates are primarily based on collateral coverage in a stress scenario. The analysis utilizes a top-down approach assuming a rejection of the entire pool in a severe global aviation downturn. The analysis incorporates a full draw on the liquidity facility, and an assumed repossession/remarketing cost of 5% of the total portfolio value. Fitch then applies immediate haircuts to the collateral value. The 787-8s and -9s in this pool receive a 20% haircut representing the low end of Fitch's Tier 1 stress range (20-30%) reflecting Fitch's view of the 787 as a top quality aircraft. The 737-900ERs receive a more severe haircut of 30%, which incorporates the 737- 900ER's limited user base, which could translate into a more difficult remarketing process if the aircraft had to be repossessed and sold. The Embraer 175LRs also receive a 30% haircut consistent with Fitch's view of the aircraft as a low Tier 1/high Tier 2 model. These assumptions produce a maximum stress LTV of 92.6%, suggesting full recovery for the A-tranche holders. The highest stress LTVs are experienced early in the life of the transaction and are expected to decline gradually as the deal amortizes. Fitch also completed its analysis using an alternate Tier 2 stress level of 35% for the E-175LRs, reflecting its view of the plane as being on the border between Tiers 1 and 2. The higher stress levels did not materially change the maximum LTV. High Collateral Quality: The quality of the collateral pool underlying the transaction is considered solid. 737-900ER (51% of the collateral pool): Fitch views the 900ER as a low Tier 1/high Tier 2 aircraft due to its attractive operating economics which make it an ideal replacement for older narrow bodies. However, the aircraft has a somewhat limited user base concentrated among a few large carriers. In particular, Lion Air and United together operate more than 70% of the current fleet. The 900ER has a sizeable backlog of 295 aircraft, but its user base remains small, with orders from only 15 airlines and two leasing companies. This compares to nearly 70 users for the competing Airbus A321-200. In addition, new orders may be pressured in the coming years if potential customers hold off to place orders for Boeing's re-engined 737-9 Max, the first of which is expected to enter into service in 2019. For these reasons Fitch applies the top end of its Tier 1 value stress range (20-30%) in its analysis. 787-8 (19%): Fitch views the 787-8 as a top quality Tier 1 aircraft despite the technical problems that the -8 has experienced since its entry into service. The 787-8 fleet was grounded for several months in early 2013 with battery problems. Various maintenance/production issues have continued to crop up since that time including the recent finding of hairline cracks in the wing ribs of currently in-production aircraft. However, the fact that the airlines have not cancelled orders for the 787 series as these issues have surfaced is a testament to the plane's desirability and unique capabilities. Boeing has a significant backlog of 373 787-8s with nearly 50 customers through February 2014. Available delivery slots are hard to come by, supporting values for the 787-8 if any were to become available in the secondary market. 787-9 (11%) Fitch also considers the larger 787-9 a high-quality Tier 1 aircraft. The -9 has a backlog of 404 aircraft with orders from more than 25 customers. Fitch believes that the superior operating economics and lack of available near-term delivery slots for the 787 series will support market values for the foreseeable future. Fitch does not believe that the delivery timing for the 787s in this collateral pool will be affected by the manufacturing issues indicated several weeks ago by Boeing. The issue arose from a change in manufacturing technique at one of Boeing's suppliers leading to the possibility of hairline cracks in one wing rib. Boeing is in the process of inspecting up to 40 787s that are currently in production, and repairing them as needed. At this time, Fitch expects the issues to be addressed in a timely manner and does not expect these potential problems to have a negative impact on the delivery schedule of the aircraft in this transaction. However, Fitch will monitor the situation going forward. Embraer 175LR (19%): Fitch considers the E-175LR to be a low Tier 1/high Tier 2 aircraft, reflecting the plane's highly successful production run over the past decade, offset by its relatively limited user base. Fleet numbers for the 175LR are similar to those of the 737-900ER with a current in-service fleet of 375 aircraft and a backlog of 188. This represents a sizeable fleet but does not compare with higher quality Tier 1 aircraft such as the 737-800 and A320-200 with fleet sizes in the thousands. Orders for the 175LR have come from 19 customers including four leasing companies. Although the total number of airlines operating the 175LR is limited, it has proven to be the popular choice for its size class compared to its direct competitor, the Bombardier CRJ 700. The 175LR has continued to receive sizeable orders over the past year compared to the CRJ 700. In addition, the 175 has a high level of commonality with its larger cousin the E-190. The 190's larger user base could provide a natural base of buyers for 175LRs in the secondary market. Affirmation Factor: Fitch considers each aircraft type in this pool to be strategically important to United, which supports a high affirmation factor. The 737-900ER is the narrow body of choice for UAL and is becoming a major part of its domestic narrow body fleet, replacing the aging 757-200. The 737-900ER is expected to constitute around 17% of United's narrow body fleet by the end of 2014 (by plane count as opposed to capacity). The range of the 737-900ER makes it an ideal plane for longer distance domestic routes, while incorporating significantly lower trip costs than the less fuel efficient 757-200. The 787s are expected to revamp UAL's international fleet, allowing UAL to serve city pairs that were not previously accessible with older 767s. For example United now flies directly from Denver to Tokyo on a 787-8 and will soon begin service from San Francisco to Chengdu, China making United the first U.S. carrier to serve that city directly. United's first 787-9 will fly directly from Los Angeles to Melbourne, Australia, a service that previously required a stop in Sydney. In addition the 787s features significantly lower estimated costs than the aircraft they replace, including some 20% lower fuel consumption, and 30% lower airframe maintenance costs, compared to similarly sized aircraft. The E-175LRs play a significant role in United's publicly stated goal to reduce its cost base by $2 billion over the next two years. Out of the $2 billion stated goal, $1 billion is expected to result from reduced fuel burn, and a major portion of that will come from the replacement of inefficient 50 seat regional jets with larger planes like the 175LRs featured in this transaction. The advantages of these planes over the 50 seat RJs that United currently operates make the likelihood of rejection in a bankruptcy scenario relatively low. B-Tranche: The 'BB+' rating for the subordinate B-tranche is assigned by notching up from UAL's IDR of 'B'. Fitch notches subordinated tranche ratings from the airline IDR based on three primary variables; 1) the affirmation factor (0-3 notches), 2) the presence of a liquidity facility, (0-1 notch), and 3) recovery prospects. In this case, Fitch has assigned a three-notch uplift (the maximum) based on a high affirmation factor (as discussed above) and a one-notch uplift reflecting the liquidity facility. Fitch generally only assigns an additional one notch of uplift for recovery prospects in situations where recovery is expected to be significantly better than for comparable existing B-tranches. In this case, recovery is roughly in-line with many recently issued B-tranches (in the 'RR1-RR2' range in a stress analysis), thus no additional uplift has been assigned. Rating Sensitivities: Senior tranche ratings are primarily based on a top-down analysis based on the value of the collateral. Therefore, a negative rating action could be driven by an unexpected decline in collateral values. For the 737-900ERs in the deal, values could be impacted by the entrance of the 737-9 MAX, or by an unexpected bankruptcy by one of its major operators. Likewise the Embraer 175LRs could also affected by the entrance of the 175LR E-2. Concerns for the 787 values largely revolve around the potential for future maintenance or production issues on a scale above and beyond what has already been experienced. Fitch does not expect to upgrade the senior tranche ratings above the 'A' level. Subordinated tranche ratings are based off of the underlying airline IDR. As such, Fitch would likely upgrade the B tranche to 'BBB-' if United's IDR were upgraded to 'B+'. Fitch's ratings for United currently have a Rating Outlook Positive. Likewise, if Fitch were to downgrade United's IDR, the B tranche ratings would likely be downgraded commensurately. Fitch has assigned the following ratings: United Airlines 2014-1 pass through trust: -- Series 2014-1 class A certificates 'A (EXP)'; -- Series 2014-1 class B certificates 'BB+ (EXP)'. Fitch currently rates United as follows: United Continental Holdings, Inc. -- IDR 'B'; -- Senior unsecured convertibles 'CCC+/RR6'; -- Senior unsecured notes 'B-/RR5'. United Airlines, Inc. -- IDR 'B'; -- Secured bank credit facility 'BB/RR1'; -- Senior secured notes 'BB/RR1'; -- Senior unsecured rating 'B-/RR5'; -- Junior subordinated convertible debentures 'CCC+/RR6'. The Rating Outlook is Positive. U.S. RENAL: Moody's Rates $225MM First Lien Term Debt 'Ba3' ----------------------------------------------------------- Moody's investors Service affirmed U.S. Renal Care, Inc.'s ("U.S. Renal") B2 Corporate Family Rating and B2-PD Probability of Default Rating. Concurrently, Moody's rated U.S. Renal's proposed $225 million incremental first lien term loan rating at Ba3. In addition, U.S. Renal's second lien term loan rating is lowered to Caa1 from B3 and the company's proposed $25 million add-on second lien term loan is rated Caa1. The outlook is negative. Moody's understands that the proceeds along with $10 million of cash will be used to pay a $250 million dividend to shareholders and cover transaction fees and expenses. The lowering of the company's second lien term loan rating reflects the increase in the first lien term loan claim in the capital structure and the corresponding decline in expected recovery as determined in the application of Moody's Loss Given Default Methodology. U.S. Renal Care, Inc. Ratings assigned: $225 million incremental first lien term loan at Ba3 (LGD 3, 31%) $25 million incremental second lien term loan at Caa1 (LGD 5, 81%) Ratings lowered: $120 million senior secured second lien term loan to Caa1 (LGD 5, 81%) from B3 (LGD 5, 77%) $160 million senior secured second lien term loan to Caa1 (LGD 5, 81%) from B3 (LGD 5, 77%) Ratings affirmed: $636 million senior secured first lien term loan at Ba3 (LGD 3, 31%) from (LGD 2, 28%) $60 million senior secured revolving credit facility at Ba3 (LGD 3, 31%) from (LGD 2, 28%) Ratings affirmed: Corporate Family Rating at B2 Probability of Default Rating at B2-PD Ratings Rationale The B2 Corporate Family Rating reflects weak credit metrics due to the company's considerable increase in debt associated with its 2013 acquisition of Ambulatory Services of America and subsequent debt-financed dividend. Pro forma leverage is estimated to be 7.2 times as of December 31, 2013, which is very high and even high for the B2 rating category -- leaving only a modest equity cushion for the company. Moody's expects leverage to be around 6.5 times by the end of fiscal 2014. The rating is also constrained by our expectation of modest free cash flow after considering higher interest expense and capital spending related to investments in newly established facilities as opposed to material debt repayment. Furthermore, the company's revenue scale is relatively small compared to the larger players in the sector, and a high concentration of revenues from government based programs. Moody's notes that the ASA acquisition doubles U.S. Renal's patient scale and provides a modest level of geographic diversification. Ratings benefit from a stable industry profile characterized by the increasing incidence of end stage renal disease ("ESRD") and the medical necessity of the service provided. U.S. Renal's negative outlook considers the company's heightened debt leverage resulting from its aggressive financial policy and the increased likelihood of a downgrade if financial metrics do not improve in the near-term. To stabilize the outlook, Moody's will be looking for U.S. Renal to show improving leverage metrics, with debt to EBITDA around 6.5 times by the end of fiscal 2014 and about 6 times within 18 months. The ratings could be downgraded if retained cash flow-to-debt declines below 5% and debt to EBITDA is sustained above 6 times. Further, if U.S. Renal pursues additional acquisitions that are not de-leveraging or shareholder friendly initiatives, the ratings could be downgraded. Although an upgrade is unlikely in the near-term, the ratings could be upgraded should the company reduce and sustain adjusted debt/EBITDA below 5.0 times. Additionally, for us to consider an upgrade, US Renal would need greater top line revenues along with free cash flow to debt around 10%. The principal methodology used in rating was the Global Healthcare Service Provider Industry Methodology published in December 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. U.S. Renal Care, Inc. ("U.S. Renal") provides dialysis services to patients who suffer from chronic kidney failure. U.S. Renal provides dialysis services through 179 outpatient facilities in 18 states and the Territory of Guam, along with acute dialysis services through contractual relationships with hospitals and dialysis centers to patients in their homes. VERMILLION INC: Reports $1.8 Million Fourth Quarter Net Loss ------------------------------------------------------------ Vermillion, Inc., reported a net loss of $1.81 million on $1.58 million of total revenue for the three months ended Dec. 31, 2013, as compared with a net loss of $1.37 million on $1.14 million of total revenue for the same period during the prior year. For the year ended Dec. 31, 2013, the Company reported a net loss of $8.81 million on $2.56 million of total revenue as compared with a net loss of $7.14 million on $2.09 million of total revenue in 2012. The Company's balance sheet at Dec. 31, 2013, showed $30.64 million in total assets, $3.87 million in total liabilities and $26.76 million in total stockholders' equity. "Our revenue growth in 2013 demonstrates the value of Vermillion's increased efforts in directly promoting the use of OVA1 in the U.S. market," said Thomas McLain, Vermillion's president and CEO. "With the knowledge and experience gained during the year, we plan to significantly expand our sales efforts in 2014. While we will continue to partner with Quest Diagnostics to make OVA1 available in the U.S., we expect that our direct efforts will lead to a higher volume of tests and increased revenue per test. We plan to apply the proceeds from the warrant exercise in December to support this expanded direct commercialization effort, as well as advance our next-generation ovarian cancer diagnostic." A copy of the press release is available for free at: http://is.gd/d2gQje About Vermillion Vermillion, Inc., is dedicated to the discovery, development and commercialization of novel high-value diagnostic tests that help physicians diagnose, treat and improve outcomes for patients. Vermillion, along with its prestigious scientific collaborators, has diagnostic programs in oncology, hematology, cardiology and women's health. The Company filed for Chapter 11 on March 30, 2009 (Bankr. D. Del. Case No. 09-11091). Vermillion's legal advisor in connection with its successful reorganization efforts wass Paul, Hastings, Janofsky & Walker LLP. Vermillion emerged from bankruptcy in January 2010. The Plan called for the Company to pay all claims in full and equity holders to retain control of the Company. BDO USA, LLP, in Austin, Texas, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2012, citing recurring losses and negative cash flows from operations and an accumulated deficit, all of which raise substantial doubt about the Company's ability to continue as a going concern. VHGI HOLDINGS: Chief Financial Officer Resigned ----------------------------------------------- Michael E. Fasci, Sr., resigned as CFO of VHGI Holdings, Inc., effective Feb. 20, 2014. Mr. Fasci's resignation was not the result of any disagreement with the Company on any matter relating to the Company's operations, policies or practices. About VHGI Holdings Fort Worth, Tex.-based VHGI Holdings, Inc., is a holding company with revenue streams from these business segments: (a) precious metals (b) oil and gas (c) coal and (d) medical technology. On Jan. 9, 2014, four creditors filed an involuntary Chapter 11 case against VHGI Holdings in the United States Bankruptcy Court Southern District of Indiana (Terre Haute). VHGI Holdings incurred a net loss of $22.34 million on $481,568 of total revenue for the year ended Dec. 31, 2012, as compared with a net loss of $5.43 million on $499,617 of total revenue during the prior year. As of Dec. 31, 2012, the Company had $47.45 million in total assets, $62.18 million in total liabilities and a $14.72 million total stockholders' deficit. Liggett, Vogt & Webb, P.A., 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, has significant amounts of past due debts and will have to obtain additional capital to sustain operations. These conditions raise substantial doubt about the Company's ability to continue as a going concern. VIGGLE INC: Maturity of Deutsche Bank Facility Moved to Dec. 31 --------------------------------------------------------------- Viggle Inc. entered into an amendment to the Company's Term Loan Agreement with Deutsche Bank Trust Company Americas on Feb. 13, 2014. The Term Loan Facility with Deutsche Bank currently has $30,000,000 in principal amount outstanding, provides for a maturity date of April 30, 2014, and includes a mandatory prepayment provision requiring that Viggle prepay all amounts outstanding under the Term Loan Facility upon receipt by Viggle of proceeds from the incurrence of additional indebtedness or from the proceeds of an equity offering. Pursuant to the Amendment, the maturity date of the Term Loan Facility was extended to Dec. 31, 2014, and the mandatory prepayment provision was amended to provide that only the first $10,000,000 in net cash proceeds from an equity offering will be required to prepay amounts outstanding under the Term Loan Facility. Repayment of the Term Loan Facility is guaranteed by Robert F.X. Sillerman, Viggle's executive chairman and chief executive officer, and the guaranty continues in place following the Amendment. 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. As of Dec. 31, 2013, the Company had $60.63 million in total assets, $53.94 million in total liabilities, $37.71 million in series A convertible redeemable preferred stock, and a $31.02 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. VISCOUNT SYSTEMS: Appoints New President, CEO, and Chairman ----------------------------------------------------------- Mr. Stephen Pineau resigned as the president, chief executive officer, chief financial officer and corporate secretary of Viscount Systems, Inc., on Feb. 17, 2014. Mr. Dennis Raefield was appointed as the president, chief executive officer, Chairman, and corporate secretary of Viscount Systems, Inc. Mr. Raefield entered into an employment agreement with the Company pursuant to which he will receive an initial annual salary of $175,000, an annual bonus of up to 50 percent of his base salary, and stock options equal to 3.99 percent of the Company's issued and outstanding on a fully diluted basis. Mr. Raefield has been a director of Viscount Systems, Inc., since November 2011. Mr. Raefield has acted as the chief executive officer of Mace Security International Inc., president of Honeywell Access Systems, and president of Pinkerton Systems Integration. About Viscount Systems Burnaby, Canada-based Viscount Systems, Inc., is a manufacturer, developer and service provider of access control security products. The Company's bank credit facility was suspended on December 30, 2011 due to the bank's assessment of the Company's financial position. Management has determined that the Company will need to raise a minimum of C$500,000 by way of new debt or equity financing to continue normal operations for the next twelve months. Management has been actively seeking new investors and developing customer relationships, however a financing arrangement has not yet completed. Short-term loan financing is anticipated from related parties, however there is no certainty that loans will be available when required. These factors raise substantial doubt about the ability of the Company to continue operations as a going concern. Dale Matheson Carr-Hilton Labonte LLP, in Vancouver, Canada, issued a "going concern" qualification on the Company's consolidated financial statements for the year ended Dec. 31, 2012. The independent auditors noted that the Company has an accumulated deficit of $8,590,355 and reported a loss of $2,679,186 for the year ended Dec. 31, 2012, raising substantial doubt about the Company's ability to continue as a going concern. Viscount Systems incurred a net loss and comprehensive loss of C$2.67 million in 2012, as compared with a net loss and comprehensive loss of C$2.95 million in 2011. The Company's balance sheet at Sept. 30, 2013, showed C$1.28 million in total assets, C$3.94 million in total liabilities and a C$2.65 million total stockholders' deficit. VUZIX CORP: Receives $1.1 Million From Warrants Exercise -------------------------------------------------------- Vuzix Corporation received warrant exercise notices for 200,000 shares of the Company's common stock. All of those warrants were exercised for cash. Since Dec. 30, 2013, holders of the Company's warrants issued in its public offering which closed on Aug. 5, 2013, have exercised an aggregate of 533,300 warrants, of which 511,600 were exercised for cash. The Company received proceeds of $1,151,100 from the cash exercises. About Vuzix Corporation Vuzix -- http://www.vuzix.com-- is a supplier of Video Eyewear products in the consumer, commercial and entertainment markets. The Company's products, personal display devices that offer users a portable high quality viewing experience, provide solutions for mobility, wearable displays and virtual and augmented reality. Vuzix holds 33 patents and 15 additional patents pending and numerous IP licenses in the Video Eyewear field. Founded in 1997, Vuzix is a public company with offices in Rochester, NY, Oxford, UK and Tokyo, Japan. As of Sept. 30, 2013, the Company had $4.53 million in total assets, $12.52 million in total liabilities and a $7.99 million total stockholders' deficit. "During the three and nine months ended September 30, 2013 and the years ended December 31, 2012 and 2011, we have has been unable to generate cash flows other than our recent asset sales, sufficient to support our operations and have been dependent on equity financings, term debt financings, revolving credit financing and the June 2012 asset sale. We will remain dependent on outside sources of funding until our results of operations provide positive cash flows. There can be no assurance that we will be able to generate cash from those sources in the future. Our independent auditors issued a going concern paragraph in their reports for the years ended December 31, 2012 and 2011. The accompanying financial statements have been prepared assuming that we will continue as a going concern," the Company said in the quarterly report for the period ended Sept. 30, 2013. VERITY CORP: Incurs $461,000 Net Loss in Dec. 31 Quarter -------------------------------------------------------- Verity Corp. filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss attributable to the Company of $461,259 on $324,299 of total revenues for the three months ended Dec. 31, 2013, as compared with a net loss attributable to the Company of $6.01 million on $96,121 of total revenues for the same period in 2012. As of Dec. 31, 2013, the Company had $4.38 million in total assets, $7.84 million in total liabilities and a $3.46 million total stockholders' deficit. "As of December 31, 2013, we did not have and continues to not have sufficient cash on hand to pay present obligations as they become due. In addition, there is no assurance that we will be able to raise additional capital on acceptable terms, if at all, to meet our current obligation over the next 12 months. Because of the foregoing, our auditors expressed substantial doubt about our ability to continue as a going concern in the September 30, 2013 Audit report," the Company said in the Quarterly Report. A copy of the Form 10-Q is available for free at: http://is.gd/FnSEQ1 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. Verity Corp. reported a net loss attributable to the Company of $7.59 million on $2.41 million of total revenues for the year ended Sept. 30, 2013, as compared with a net loss attributable to the Company of $623,079 on $449,626 of total revenues during the prior fiscal year. Bongiovanni & Associates, CPA's, in Cornelius, North Carolina, 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, has negative working capital, and has yet to generate an internal net cash flow that raises substantial doubt about its ability to continue as a going concern. WEST CORP: Reports $143.2 Million Net Income in 2013 ---------------------------------------------------- West Corporation filed with the U.S. Securities and Exchange Commission its annual report on Form 10-K disclosing net income of $143.20 million on $2.68 billion of revenue for the year ended Dec. 31, 2013, as compared with net income of $125.54 million on $2.63 billion of revenue for the year ended Dec. 31, 2012. As of Dec. 31, 2013, the Company had $3.48 billion in total assets, $4.22 billion in total liabilities and a $740.17 million total stockholders' deficit. Bankruptcy Warning "If our cash flows and capital resources are insufficient to fund our debt service obligations and to fund our other liquidity needs, we may be forced to reduce or delay capital expenditures or declared dividends, sell assets or operations, seek additional capital or restructure or refinance our indebtedness. We cannot make assurances that we would be able to take any of these actions, that these actions would be successful and permit us to meet our scheduled debt service obligations or that these actions would be permitted under the terms of our existing or future debt agreements, including our senior secured credit facilities or the indentures that govern our outstanding notes. Our senior secured credit facilities documentation and the indentures that govern the notes restrict our ability to dispose of assets and use the proceeds from the disposition. As a result, we may not be able to consummate those dispositions or use the proceeds to meet our debt service or other obligations, and any proceeds that are available may not be adequate to meet any debt service or other obligations then due. If we cannot make scheduled payments on our debt, we will be in default of such debt and, as a result: * our debt holders could declare all outstanding principal and interest to be due and payable; * our debt holders under other debt subject to cross default provisions could declare all outstanding principal and interest on such other debt to be due and payable; * the lenders under our senior secured credit facilities could terminate their commitments to lend us money and foreclose against the assets securing our borrowings; and * we could be forced into bankruptcy or liquidation," the Company said in the Report. A copy of the Form 10-K is available for free at: http://is.gd/Mp0M3f About West Corporation Founded in 1986 and headquartered in Omaha, Nebraska, West Corporation -- http://www.west.com/-- provides outsourced communication solutions to many of the world's largest companies, organizations and government agencies. West Corporation has a team of 41,000 employees based in North America, Europe and Asia. * * * As reported by the TCR on June 21, 2013, Standard & Poor's Ratings Services raised its corporate credit rating on Omaha, Neb.-based business process outsourcer West Corp. to 'BB-' from 'B+'. The upgrade reflects Standard & Poor's view that lower debt leverage and a less aggressive financial policy will strengthen the company's financial profile. In the April 4, 2013, edition of the TCR, Moody's Investor Service upgraded West Corporation's Corporate Family Rating to B1 from B2. "The CFR upgrade to B1 reflects West's shift to a more conservative capital structure and financial policies as a publicly owned company," stated Moody's analyst Suzanne Wingo. WEST TEXAS GUAR: Objects to Bid for Trustee Appointment ------------------------------------------------------- West Texas Guar, Inc., objects to the Petitioning Creditors' motion for appointment of a trustee in its involuntary Chapter 11 case and WTG's existing management be release. WTG also objects to the Petitioning Creditors' request that the company be at least temporarily restrained from selling, disposing or transferring any of its guar crop or any income collected from those crops. WTG asserts that no cause exists to appoint a trustee under the facts of the case. Appointing a trustee is an extraordinary remedy and there is a strong presumption in favor of allowing the alleged debtor to remain in possession, Samuel M. Stricklin, Esq. -- sam.stricklin@bgllp.com -- at Bracewell & Giuliani LLP, in Dallas, Texas, contends. The Petitioning Creditors have a hefty burden to prove by clear and convincing evidence that WTG needs a trustee. The Petitioning Creditors, all of whom are farmers, assert that the need for Court intervention is necessary in this case where the Debtor is disposing of assets to the detriment of parties with claimed and competing interests in those assets. In this case, in order to preserve the property of the estate, and specifically the guar crop harvested by the Petitioning Creditors and sold to WTG, and to prevent loss, it is imperative that a Trustee be appointed and existing management released, the Petitioning Creditors tell the Court. WTG is also represented by Tricia R. DeLeon, Esq. -- tricia.deleon@bgllp.com -- and Lauren C. Kessler, Esq. -- lauren.kessler@bgllp.com -- at Bracewell & Giuliani LLP, in Dallas, Texas. Representatives of 24 farms filed an involuntary Chapter 11 bankruptcy petition (Bankr. N.D. Tex. Case No. 14-50056) on March 14, 2014, against West Texas Guar Inc. The farmers claim they are owed nearly $4 million for seed they've delivered on the 2013 harvest but haven't been paid for. Guar is a seed crop that has a variety of uses in human and animal food production, textiles and fracking for oil and gas wells. Judge Robert L. Jones oversees the case. The farmers are represented by R. Byrn Bass, Jr., Esq., Attorney at Law. WHEATLAND MARKETPLACE: Wants Extension of Plan Filing Period ------------------------------------------------------------ Wheatland Marketplace, LLC's exclusive period to file a plan of reorganization will expire on April 2, 2014. The owner of a shopping center wants more time and is asking the Court for an extension. Specifically, Wheatland seeks leave to file a reorganization plan until June 30, 2014, and solicit acceptances of that plan until August 31, 2014. Thomas W. Toolis, Esq., at Jahnke Sullivan & Toolis, LLC, in Frankfort, Illinois, tells the Court that the extension will allow Wheatland to focus its energy on successfully navigating its Chapter 11 case. Since the commencement of its Chapter 11 case, Wheatland has devoted substantial time and resources to the pursuit of potential refinance of its debt, notes Mr. Toolis. About Wheatland Marketplace Wheatland Marketplace, LLC, owner of a commercial retail center in Naperville, Illinois, filed a Chapter 11 bankruptcy petition (Bankr. N.D. Ill. Case No. 13-46492) in Chicago on Dec. 3, 2013. In its schedules, Wheatland Marketplace disclosed $10,999,006 in total assets and $7,052,778 in total liabilities. Judge Pamela S. Hollis oversees the case. The Debtor has tapped Christopher M. Jahnke, Esq., and Thomas W. Toolis, Esq., at Jahnke, Sullivan & Toolis, LLC, in Frankfurt, Illinois, as counsel. The Debtor employed Edgemark Asset Management LLC as property manager. Coleen J. Lehman Trust and Lucy Koroluk each holds a 50% membership interest in the Debtor. WORLD PROPERTIES: Voluntary Chapter 11 Case Summary --------------------------------------------------- Debtor: World Properties, LLC 14 Burnwood Drive Bloomfield, CT 06002 Case No.: 14-20535 Chapter 11 Petition Date: March 24, 2014 Court: United States Bankruptcy Court District of Connecticut (Hartford) Judge: Hon. Albert S. Dabrowski Debtor's Counsel: Kevin L. Mason, Esq. LAW OFFICES OF KEVIN L. MASON 47 East Cedar Street Newington, CT 06111 Tel: (860) 666-6022 Fax: 860-666-6710 Email: kevin_mason_atty@sbcglobal.net Total Assets: $3 million Total Liabilities: $4.08 million The petition was signed by Antonio Reale, authorized individual. The Debtor did not file a list of its largest unsecured creditors when it filed the petition. ZALE CORP: Earns $50.7 Million in January 31 Quarter ---------------------------------------------------- Zale Corporation filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q reporting net earnings of $50.78 million on $656.44 million of revenues for the three months ended Jan. 31, 2014, as compared with net earnings of $41.20 million on $670.75 million of revenues for the same period in 2013. For the six months ended Jan. 31, 2014, the Company reported net earnings of $23.48 million on $1.01 billion of revenues as compared with net earnings of $12.94 million on $1.02 billion of revenues for the same period during the prior year. The Company's balance sheet at Jan. 31, 2014, showed $1.28 billion in total assets, $1.08 billion in total liabilities and $192.07 million in total stockholders' investment. A copy of the Form 10-Q is available for free at: http://is.gd/8xXLVZ About Zale Corporation Based in Dallas, Texas, Zale Corporation (NYSE: ZLC) -- http://www.zalecorp.com/-- is a specialty retailer of diamonds and other jewelry products in North America, operating approximately 1,695 retail locations throughout the United States, Canada and Puerto Rico, as well as online. Zale Corporation's brands include Zales Jewelers, Zales Outlet, Gordon's Jewelers, Peoples Jewellers, Mappins Jewellers and Piercing Pagoda. Zale also operates online at http://www.zales.com/, http://www.zalesoutlet.com/, http://www.gordonsjewelers.com/and http://www.pagoda.com/ Zale Corp reported a net loss of $27.30 million for the three months ended Oct. 31, 2013. Zale Corp disclosed net earnings of $10.01 million for the year ended July 31, 2013, as compared with a net loss of $27.31 million for the year ended July 31, 2012. The Company incurred a net loss of $112.30 million for the year ended July 31, 2011 and a net loss of $93.67 million for the year ended July 31, 2010. ZOGENIX INC: Reports $80.8 Million 2013 Net Loss ------------------------------------------------ Zogenix, Inc., filed with the U.S. Securities and Exchange Commission its annual report on Form 10-K disclosing a net loss of $80.85 million on $33.01 million of total revenue for the year ended Dec. 31, 2013, as compared with a net loss of $47.38 million on $44.32 million of total revenue for the year ended Dec. 31, 2012. The Company's balance sheet at Dec. 31, 2013, showed $112.50 million in total assets, $94.07 million in total liabilities and $18.42 million in total stockholders' equity. Ernst & Young LLP, in San Diego, California, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2013. The independent auditors noted that the Company's recurring losses from operations and lack of sufficient working capital 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/6LCsGZ Executive Bonuses The Board of Directors of Zogenix approved the cash bonus payment for the 2013 fiscal year to be paid to the Company's chief executive officer and other named executive officers as follows: Name Title Bonus --------------------- ----------------------- -------- Roger L. Hawley Chief Executive Officer $210,000 Stephen J. Farr, Ph.D. President $160,000 Ann D. Rhoads EVP, Chief Financial $137,213 Officer, Treasurer and Secretary Richard S. Shively EVP, Chief Commercial $137,183 Officer Cynthia Y. Robinson Former Chief Development Officer $75,000 About Zogenix Inc. Zogenix, Inc. (NASDAQ: ZGNX), with offices in San Diego and Emeryville, California, is a pharmaceutical company commercializing and developing products for the treatment of central nervous system disorders and pain. * IRS Rips Bankrupt Atty's 'Illegal' Request to Discharge Interest ------------------------------------------------------------------ Law360 reported that a bankrupt attorney who says he should not have to pay interest on his tax debts is asking a federal judge in Arizona to illegally treat his tax debt interest like student loan interest, the Internal Revenue Service argued. According to the report, the IRS is asking the judge to reverse a 2009 decision of the bankruptcy court, which ruled that the agency violated a discharge injunction for Arizona attorney Logan Johnston when it tried to collect interest on his tax debt that incurred during the four-year period. * Lady Gaga Admits Filing for Bankruptcy During Early Career ------------------------------------------------------------ Bang Showbiz reported that Lady Gaga admits she suffered financial difficulty after she invested her entire $3 million dollar fortune into staging at her concerts in a bid to launch her pop career. According to the report, Lady Gaga has revealed she was bankrupt during her 'Monster's Ball' tour. The 'Applause' singer admits she suffered financial difficulty after she invested her entire $3 million dollar fortune into staging at her concerts in a bid to launch her pop career back in 2009, the report related. Gaga revealed: "I had $3 million dollars in the bank to my name and I threw it all in to make my stage. So I was bankrupt during the show. So I was bankrupt during the show," the report further related. The comments come as part of a trailer for documentary, 'Who The F**k Is Arthur Fogel?', a film which follows the Live Nation executive who Gaga was keen to help take her career to the next level, the report added. * IMG in No Hurry to Buy Out Brazil's Eike Batista -------------------------------------------------- Matthew Cowley, writing for Daily Bankruptcy Review, reported that sports and entertainment firm IMG Worldwide Inc., a Forstmann Little & Co. portfolio company that is in the process of being sold, is keen to continue working with Brazilian entrepreneur Eike Batista on their local sports and entertainment joint venture, despite the latter's fall from grace. According to the report, Mr. Batista's commodities and logistics empire plunged into financial trouble in late 2012 and 2013 after production at his flagship oil company failed to live up to expectations. It was a major blow to the flamboyant entrepreneur, who at the height of his fame and fortune boasted of becoming the richest man in the world, the report said. Mr. Batista has since sold some of his stakes in a number of companies, while two have filed for bankruptcy protection, the report related. * Financial Firms Are Pressuring Lawmakers over Proposed Bank Tax ----------------------------------------------------------------- Stephanie Armour and Ryan Tracy, writing for The Wall Street Journal, reported that Wall Street is mobilizing to beat back an unexpected threat: a bank tax championed by a Republican lawmaker. According to the report, Bank of America Corp., Citigroup Inc., Goldman Sachs Group Inc., J.P. Morgan Chase & Co. and other big banks are marshaling opposition on Capitol Hill to kill a proposal by House Ways and Means Committee Chairman Dave Camp (R., Mich.) to tax the nation's largest financial firms, according to people familiar with the efforts. The companies are curtailing financing for GOP lawmakers and warning of an economic hit, these people say. Goldman Sachs, which was in discussions to hold a fundraiser for the National Republican Congressional Committee, recently opted not to move forward because of concerns about Mr. Camp's bank-tax proposal, according to people familiar with the plans, the report related. The bank continues to make contributions from its political-action committee to both Democrats and Republicans and plans to host fundraisers for both parties in coming months, according to a person at the bank, the report further related. Behind the scenes, banks are pressing lawmakers to publicly denounce the plan, according to interviews with industry officials and congressional aides, the report said. Fifty-four Republicans signed a letter to Mr. Camp conveying "deep concerns" about the bank tax, saying it threatens economic vitality by reducing access to credit and curbing economic growth. * Wells Fargo Foreclosure Manual Under Fire ------------------------------------------- Danielle Douglas, writing for The Washington Post, reported that Wells Fargo created an elaborate guide for how to produce missing documents to foreclose on homeowners, according to a lawsuit that has caught the attention of state and federal regulators. According to the report, the bank denies wrongdoing, but the allegations rekindle claims that lenders, including Wells Fargo, used forged and shoddy paperwork during the recession to quickly foreclose on struggling homeowners, a practice known as "robo- signing." Those charges led to a $25 billion national mortgage settlement that was supposed to put an end to such abusive practices, but bankruptcy lawyer Linda Tirelli says nothing has changed. In the course of defending a New York homeowner facing foreclosure, Tirelli said she found a 150-page manual instructing Wells Fargo lawyers how to process foreclosures when a key document, known as an endorsement, is missing, the report related. Lenders need endorsements to prove that they own the mortgage, before they can foreclose on a homeowner. The manual, reviewed by The Washington Post, outlines steps for obtaining the missing document after the bank has initiated foreclosure proceedings. It also lays out what lawyers must do in the event of a lost affidavit or if there is no documentation showing the history of who owned the loan, paperwork the bank should already have. "This is a blueprint for fraud," Tirelli, who attached a copy of the manual as evidence in the lawsuit filed in U.S. District Court in White Plains, N.Y., told the news agency. "The idea that this bank is instructing people how to produce these documents is appalling." * Costly Loans Are Drawing Attention from States ------------------------------------------------ Jessica Silver-Greenberg and Rachel Abrams, writing for The New York Times' DealBook, reported that Loralty Harden, a 62-year-old retiree, was distressed when the balance on a short-term loan she had obtained to supplement her Social Security income did not budge even though she diligently followed the payment plan that came with it. According to the report, only after she went back to the branch of All Credit Lenders in Machesney Park, Ill., where she originally received the loan in 2011, did she learn why. Her minimum payments were being devoured by a monthly "account protection fee" -- a mandatory $15 payment on every $50 she borrowed -- that Ms. Harden says she never knew about. That pushed the interest rate, advertised at 18 percent, above 350 percent, according to loan documents reviewed by The New York Times. Ms. Harden is at the front lines of a battle playing out state by state, where the authorities are redoubling efforts to shield vulnerable Americans from short-term loans with interest rates that can exceed 300 percent, the report related. The crackdown gained momentum when the Illinois attorney general, Lisa Madigan, accused All Credit Lenders of misleading borrowers into taking out expensive loans that come with insurance products that they do not need or cannot use, the report further related. In a lawsuit against All Credit Lenders, Ms. Madigan contends the company, which has storefronts in Illinois, South Carolina and Wisconsin, deceived borrowers into buying a product pitched as a way to protect them from falling behind on payments in the event of a job loss, the report said. But those protections never materialize, the lawsuit said. In fact, the fee is actually a way to raise interest rates that circumvent the state's usury cap of 36 percent. * Moody's Says No Increase in Number of Low-Rated Junk Companies ---------------------------------------------------------------- There will be no increase in the number of companies needing bankruptcy protection, according to two measures from Moody's Investors Service. Moody's issued a report saying there are 159 companies with credit ratings of B3 or lower with a negative outlook, or about half of the approximately 300 companies on the list when Moody's first counted in 2009. The 159 low-rated companies represent 10.4 percent of all junk-rated companies, Moody's said in its March 21 report. Moody's said that seven companies have been on the low-rated list since inception in 2009. Moody's still predicts that the current junk-default rate of 1.6 percent will decline to 1.4 percent in June before rising to 2.8 percent one year from now. Defaults will be few and far between because the companies' ability to refinance at low rates has moved the so-called maturity wall out to 2018. * Federal Reserve Officials Weighing How to Retool Rate Guidance ---------------------------------------------------------------- Pedro Nicolaci Da Costa, writing for The Wall Street Journal, reported that Federal Reserve officials are discussing ways to revise their guidance about the likely future path of interest rates, but it takes some detective work to pin down how they might do it. According to the report, the Fed has said in its recent policy statements it won't start raising short-term interest rates from near zero until well past the time the unemployment rate falls below 6.5%. That position hasn't changed. But with joblessness at 6.7% in February, several officials have indicated in recent speeches and interviews they might want to scrap the threshold entirely or revamp their message in other ways. Fed policy makers will debate the matter at their meeting, though reaching agreement on a new approach could be a challenge, the report related. The options some officials have mentioned include offering broad assurances, not a numerical threshold, for considering when to raise rates; citing a wider array of measures to consider when assessing when to raise rates; and providing more information about how much they would raise rates after they start the process, the report further related. "This is probably a reasonable time to revamp the statement to take out that 61/2 % threshold because it's not really providing any great value," New York Fed President William Dudley said in an interview earlier this month, the report added. The 6.5% threshold is "a little bit obsolete." * Arkansas Bankruptcy Judge James Mixon Dies at 72 -------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that James G. Mixon, a U.S. bankruptcy judge in Arkansas for 30 years, died last week at his home. He was 72. Judge Mixon served as a so-called panel trustee until his elevation to the bench in 1984, according to the report. He retired in 2006 to continue carrying a full case load on what's known as recall status. Judge Mixon graduated from the University of Arkansas School of Law, the report related. He was a law clerk for a justice on the Arkansas state Supreme Court and was an assistant U.S. attorney. ********* 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 ***